E-ZPass: A Case Study in Interagency Coordination. Linda M. Spock NYMTC Executive Development March 13, 2009

Transcription

1 E-ZPass: A Case Study in Interagency Coordination Linda M. Spock NYMTC Executive Development March 13, 2009

2 It was (almost) 20 years ago today History was made at an IBTTA conference Changed AVI to ETTM First meeting of toll agency heads Voluntary decision to work together

3 E-ZPass Interagency Group Original Member Agencies MTA Bridges and Tunnels (formerly Triborough Bridge and Tunnel Authority) New Jersey Highway Authority (Garden State Parkway) New Jersey Turnpike Authority New York State Thruway Authority Pennsylvania Turnpike Commission Port Authority of NY & NJ (Hudson River crossings) South Jersey Transportation Authority (Atlantic City Expressway)

4 Voluntary Efforts Kicked Off Mid-1990 Executive-Level Commitment Set Goals Guide Activities

5 Interagency Policy Statement Benefits of Technology Customer convenience Congestion relief Cost reduction/business opportunities Traffic management Enhanced regional mobility Interagency Objective Adopt uniform specifications to enable procurement of a unified and compatible regional system of tags and readers

6

7 Basis for Interagency Coordination Need to avoid incompatible or interfering systems Customer convenience of single tag in context of customer overlap Cost advantages of multi-agency purchasing power

8

9 How E-ZPass Works: Courtesy of Marilyn Mattei, PANYNJ

10 Process, Part I Issue What to select Solution Common front-end hardware Read-Only with migration path, or Read/Write from the outset Key Milestones January 1991: Begin developing draft tech specs Summer/Fall 1991: Comments on draft specs

11 Process, Part II Issue How to select Solutions Joint RFT and selection followed by individual agency acceptance of irrevocable offer Multi-committee structure with each agency represented Key Milestones January 1992: Release of interagency RFT Spring 1992: Evaluation of written proposals June 1992: Selection of two technology finalists

12 Interagency Committees Involved in Technology Selection Executive Policy Procurement Technical Evaluation Negotiating Team Legal

13 Process, Part II Issue How to select Solutions Joint RFT and selection followed by individual agency acceptance of irrevocable offer Multi-committee structure with each agency represented Key Milestones January 1992: Release of interagency RFT Spring 1992: Evaluation of written proposals June 1992: Selection of two technology finalists

14 Process, Part III Issues How to prove read/write technology really works How to share business risks with vendor How to protect public agencies interests Solutions Comprehensive field testing of two finalists Parallel negotiation of commercial business terms Key Milestones Summer/Fall 1992: Round 1 of field testing December 1992: Receipt of best and final offers Spring/Fall 1993: Round 2 of field testing March 18, 1994: Selection of Mark IV

15 Post- Selection Milestones Individual agency acceptance of separate but identical Irrevocable Offers Implementation of E-ZPass on agencyspecific timetables Formal Interagency Operating Agreement

16 Today Updated information about E-ZPass provided by James A. Crawford, Executive Director of the E-ZPass Interagency Group or obtained from the IAG website at

17 Today Toll Agencies and Companies joined together in Offering the public a common method of seamless toll payment Committed to prompt reconciliation of accounts and charges Unified by a common belief of ONE TAG, ONE ACCOUNT A Well-Known and Highly Accepted Brand

18 Today Quick Facts: Over 18 million tags in circulation. Over 10 million accounts. Representing 80% of toll collection in U.S. 67% Transaction Penetration Rate. Overall 65% Revenue Penetration Rate. Over 100,000 tags issued per month. Over 70,000 accounts opened per month. Accepted in 14 States with 25 Members.

19

20 HOW DID THE IAG GROW?

21 FIVE ASSOCIATE OR AFFILIATE MEMBERS HAVE BEEN ADDED

22 Joining the? Application Transition Operations

23 Application Choose to Join Agree to the Operating Agreement, Reciprocity & Service Mark License Apply Pay Initial Fee Application Acceptance

24 Transition Develop System to meet IAG File Spec Set Up Back Office Set up Network Link Test & Verify Issue Transponders Download all Files

25 Operations Nightly Downloads Nightly Uploads Monthly Reciprocity Quarterly CC Fees Submit Data Monthly Participate in Committees

26 Expansion to E-ZPass Plus What is E-ZPass Plus? E-ZPass customers that automatically replenish their accounts with credit cards are eligible to pay parking fees with their E-ZPass tags at facilities listed below. Your account will be debited for the parking fee if the fee is less than $ Parking fees greater than $20.00 will be charged directly to the credit card used to replenish the account. E-ZPass Plus facilities: Albany International Airport JFK, La Guardia, & Newark Liberty International Airports Atlantic City International Airport Atlantic City New York Ave Parking Garage

27 ROLE OF COMMITTEES EXECUTIVE MANAGEMENT COMMITTEE CEO/COO or representatives Adopts Policy for IAG Approves New Members Approves changes in Agreements Provides Oversight to Legal Committee Approves Annual Budget Appoints Executive Director POLICY COMMITTEE Top ETC Operating Staff Formulates Policy for IAG Recommends changes for various Agreements of IAG Approves the Policy Matrix Provides Oversight to other Committees

28 ROLE OF COMMITTEES Legal Committee Reviews all approved documents of IAG and recommends changes where appropriate Provides advice to Policy and Executive Management Committee Drafts Operating Agreements Technical Committee Approves all Hardware used by IAG Recommends vehicle placement locations for transponders Develops standards for hardware and software Recommends Procurement Criteria

29 ROLE OF COMMITTEES Procurement Committee Assists in drafting any documents for Procurement of Services or for Hardware on behalf of entire IAG Provides advice to new members on various agreements and procurement issues Finance Committee Develops Annual Budget Recommends any changes in Initiation or Annual Fees Reviews ways to reduce costs for members

30 ROLE OF COMMITTEES Operations Committee Follows issues concerning Plaza Operations Recommends operational standards for toll plazas Maintains records on plaza configurations Provides assistance to new members PR & Communications Committee Recommends ways to protect service mark Recommends modifications to Web sites Recommends participation in marketing opportunities Evaluates use of Service Mark in signing Considers outside opportunities involving use of Service Mark

31 TASK FORCES Reciprocity Task Force Includes CSC Operators Addresses issues involving interchanges of funds Coordinates Testing for new Members and Relocated CSC s Addresses technical issues involved in file transfers Recommends policy changes as appropriate Next Generation Task Force Identified potential vendors and products for future of IAG ETC Developed an RFP for the acquisition of Hardware Coordinate responses to any questions asked in Proposal Process Provide framework for evaluation of proposals and selection of a final vendor

32 IAG Challenges Phased initial implementation resulted in unequal costs Ongoing challenge of operating agreement requirement of unanimity for decisions involving more than $10K per agency Diversity of agencies in size and tenure

33

34 Future Issues National vs. regional interoperability Technological change, but with backward compatibility More tolling for infrastructure New frontiers in interoperability (ATI)

35 Mission: The Alliance for Toll Interoperability To Promote and Implement Interoperability between Toll Operators for the Benefit of Customers and Agencies

36

37 E-ZPass Interagency Group Keys to Success: High level commitment to common vision Willingness to compromise and adapt Bottom Line: New Technology Interagency Cooperation Improved Service + = and Seamless Transportation System in Action

38