SR 02-13-2024 5A
City Council
Report
City Council Meeting: February 13, 2024
Agenda Item: 5.A
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To: Mayor and City Council
From: Anuj Gupta, Director of Transportation, Department of Transportation,
Finance & Administrative Services
Subject: Award Contract to SPX Genfare for Farebox and Data System Upgrade and
Software Maintenance Support
Recommended Action
Staff recommends that the City Council:
1. Adopt a finding of no possibility of significant effect pursuant to Section
15061(b)(3) (Common Sense Exemption) of the California Environmental Quality
Act (CEQA) Guidelines.
2. Authorize the City Manager or designee to negotiate and execute an agreement
with SPX Genfare for cloud-hosted maintenance and support for a five-year term,
an upgrade to software version 4.0, and activation of the QR code readers so
they can be used to scan mobile or paper tickets in the Genfare fare boxes
currently installed on the Department of Transportation’s fleet of transit buses.
This recommended award is made as an exception to the competitive bidding
process pursuant to Section 2.24.250 (b) and is for a total amount not to exceed
$353,087 (which includes a 5% contingency).
Summary
Big Blue Bus (BBB), a division of the Santa Monica Department of Transportation
(DOT), operates 194 transit buses across 69 square miles of greater Los Angeles
providing more than 800,000 rides each month. BBB is committed to providing an
exceptional user experience onboard its buses, beginning with its three fare collection
systems with which all customers interact. Currently, the majority (74% in FY 2022-23)
of BBB customers board using the regional Transit Access Pass (TAP) ticketing system.
Another 17% of customers pay with cash using our Genfare fareboxes, and a small but
consistent percentage of BBB customers (5%) board with mobile tickets, which can be
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purchased in smartphone apps including the Token Transit app as well as the trip-
planning apps Transit, Google Wallet, Moovit, and Bestmap, and others.1
Staff is recommending upgrades to its farebox software and hardware to better support
the non-TAP fare collection systems used by approximately 26% of BBB customers. In
September 2015, staff received Council approval for a contract with SPX Genfare
(formerly GFI) to refurbish its fare collection system including new fareboxes, a vaulting
system, and a data collection and reporting system. The Genfare software has never
been upgraded, which risks data loss or data security concerns. The system is also not
user-friendly for transaction reporting and reconciliation. Staff recommends upgrading
the Genfare data software to their current more robust web-based system with a
Software as a Service (SaaS) contract for maintenance and support . In addition, staff
recommends activating the fareboxes’ QR code readers to scan QR codes on mobile
and paper tickets. These upgrades will improve system security, accuracy, reliability,
and the user and customer experience.
Discussion
In September 2015, a contract was awarded to SPX Genfare (formerly GFI) to refurbish
BBB’s fare collection system, which was then 17 years old, including the purchase of
new fareboxes for all buses in the fleet. The updated Genfare system, including new
“future-proof” Fast Fare fareboxes capable of accepting a variety of fare media including
cash, metal tokens, magnetic stripe paper tickets, QR-coded mobile tickets, smart
cards, and credit/debit cards, was installed and has been operating reliably since that
time.
BBB eliminated metal tokens in 2021 and magnetic-stripe paper tickets in 2022, and
today the GFI fare system is only used to collect and count cash fares and to manually
log users who ride free (such as children under five), whose TAP or mobile passes fail
to scan, or who refuse to pay their fares. As the City has not had a software
maintenance contract for the Genfare fare collection system, the fare collection software
1 Big Blue Bus Performance Metrics Fiscal Year-End Report FY2022-23
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has never been upgraded. The current system uses an out-of-date and unsupported
operating system. To ensure BBB fare transactions are recorded reliably, securely, and
accurately, staff recommends that the City contract with SPX Genfare to update the
data system software to the current version, upgrade it to a cloud-hosted Software as a
Service (SaaS) system, and purchase five years of software maintenance and support
services.
In addition, staff recommends upgrading the farebox software to support using the QR
code reader built into the farebox. Currently, customers can scan their non-TAP
smartphone tickets on a Bluetooth ticket reader which is part of the Token Transit
mobile ticketing system. However, based on Motor Coach Operator (MCO) feedback,
some customers find it difficult to quickly pull up the right screen on their smartphone to
activate a ticket the Bluetooth validator can read. Others have the ticketing screen ready
but then have trouble positioning the phone so the reader will scan the ticket. Some
customers, especially out-of-town, infrequent, or first-time users, are confused by the
three validators (the SPX Genfare farebox, the TAP validator, and the Token Transit
Bluetooth validator) onboard and do not know which one to use.
Figure 1 - Ticket validation systems onboard BBB vehicles
Genfare Fast Fare farebox TAP Validator
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Token Transit Bluetooth Validator
Another issue is that the Bluetooth validators cannot read tickets generated by third -
party smartphone applications (apps). Many customers prefer the convenience of
buying tickets in the same app they are already using for trip planning such as the
Transit app, Google Transit, Moovit, or Bestmap. In FY2022-23, third-party apps sold
nearly 63% of BBB’s mobile tickets, with more than 58% of those purchased through
BBB’s official trip-planning app, Transit. However, since the Token Transit Bluetooth
validator cannot be not integrated with third-party apps due to technical limitations,
customers who purchased their ticket in a trip-planning app must show their pass to the
operator when they board. These situations can be frustrating for customers and slow
the boarding process.
As a result of these issues, the validators are underutilized. As of December 2023,
approximately 93% of non-TAP mobile ticketing customers show their smartphones to
the motor coach operator (MCO) for visual validation instead of attempting to use the
validator. However, QR code readers, which can scan tickets generated by many
mobile ticketing vendors, third-party apps, and paper (static) QR-coded tickets, are
already built into our Genfare fareboxes. Several mobile ticketing providers, including
our current vendor Token Transit, have successfully integrated QR-coded mobile tickets
with Genfare fareboxes at other transit agencies.
In addition to scanning mobile tickets, the QR code readers could scan paper BBB
single-use tickets, which social service agencies distribute to their clients. The social
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service agencies used to buy metal tokens in bulk, but when metal tokens were
discontinued in 2021, one-ride TAP cards were developed to replace them. However, as
the TAP one-ride tickets expired after seven months and many clients served by social
service agencies would come in only sporadically, a ticket with an expiration date was of
limited use to them. As a result, the TAP one-ride tickets were unpopular and bulk ticket
sales decreased by 90% since metal tokens were discontinued. Social service agencies
have requested disposable single-use tickets that do not expire, and QR-coded paper
tickets would meet these requirements.
Using fareboxes to read mobile and paper QR coded tickets would eliminate the need
for MCOs to visually validate fares, provide staff with more detailed transaction data for
analysis, and reduce the number of validators on board from three to two, speeding up
the boarding process and improving the customer experience.
Vendor Selection
Exception to Competitive Bidding
Staff recommends SPX Genfare to furnish and deliver fare collection system upgrades including
activation of the built-in QR code reader, and five years of maintenance support of their data system as
an exception to competitive bidding per Muni Code 2.24.250 (b) as the services are proprietary to fare
collection hardware owned by the City.
b. when a good or service is copyrighted, patented or only available form one license holder, including,
proprietary goods, original equipment manufacturers and/or exclusive distributors;
Environmental Review
The contract for upgrades to and maintenance support for the Genfare data system is
exempt from the California Environmental Quality Act (CEQA) pursuant to Section
15061(b)(3) (Common Sense Exemption) of the CEQA Guidelines. The contract is
covered by the commonsense exemption which states that CEQA does not apply,
“where it can be seen with certainty that there is no possibility that the activity in
question may have a significant effect on the environment.” The agreement will provide
the City with an upgraded fare collection system. Therefore, it can be seen with
certainty that there is no possibility that the activity in question may have a significant
effect on the environment.
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Past Council Actions
Meeting Date Description
September 29, 2015
(attachment A)
BBB Fare Collection System Refurbishment
Financial Impacts and Budget Actions
Staff seeks authority to approve available funding from the Big Blue Bus fund to award a
contract with SPX Genfare for an upgrade to the farebox data system including a
version upgrade, moving the system to a cloud-hosted Software as a Service (SaaS)
environment, providing maintenance support for five years through June 30, 2029, and
activating the fareboxes’ QR code readers so they can validate QR-coded mobile and
paper tickets. Future year funding is contingent on Council budget approval.
Contract Request
FY 2023-24
Budget
Request Amount
Department/CIP Account # Total 5-year Contract
Amount
$353,087 C6004730.689000 $353,087
Prepared By: Barbara Andres, Customer Experience and Innovation
Administrator
Approved
Forwarded to Council
Attachments:
A. BBB Fare Collection System Refurbishment (Web Link)
B. SPX Genfare 2024 OAKS INITIATIVE FORM
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CITY OF SANTA MONICA
OAKS INITIATIVE NOTICE
NOTICE TO APPLICANTS, BIDDERS, PROPOSERS
AND OTHERS SEEKING DISCRETIONARY PERMITS, CONTRACTS,
OR OTHER BENEFITS FROM THE CITY OF SANTA MONICA
Santa Monica’s voters adopted a City Charter amendment commonly known
as the Oaks Initiative. The Oaks Initiative requires the City to provide this notice and
information about the Initiative’s requirements. You may obtain a full copy of the
Initiative’s text from the City Clerk.
This information is required by City Charter Article XXII—Taxpayer Protection.
It prohibits a public official from receiving, and a person or entity from conferring,
specified personal benefits or campaign advantages from a person or entity after
the official votes, or otherwise takes official action, to award a “public benefit” to that
person or entity. The prohibition applies within and outside of the geographical
boundaries of Santa Monica.
All persons or entities applying or receiving public benefits from the City of
Santa Monica shall provide the names of trustees, directors, partners, and officers,
and names of persons with more than a 10% equity, participation or revenue
interest. An exception exists for persons serving in those capacities as volunteers,
without compensation, for organizations exempt from income taxes under Section
501(c)(3), (4), or (6), of the Internal Revenue Code. However, this exception does not
apply if the organization is a political committee or controls political committees.
Examples of a “public benefit” include public contracts to provide goods or services
worth more than $25,000 or a land use approval worth more than $25,000 over a 12-
month period.
In order to facilitate compliance with the requirements of the Oaks Initiative,
the City compiles and maintains certain information. That information includes the
name of any person or persons who is seeking a “public benefit.” If the “public benefit”
is sought by an entity, rather than an individual person, the information includes the
name of every person who is: (a) trustee, (b) director, (c) partner, (d) officer, or has
(e) more than a ten percent interest in the entity. Therefore, if you are seeking a
“public benefit” covered by the Oaks Initiative, you must supply that information on
the Oaks Initiative Disclosure Form. This information must be updated and supplied
every 12 months.
5.A.b
Packet Pg. 81 Attachment: SPX Genfare 2024 OAKS INITIATIVE FORM (5852 : Award Contract to SPX Genfare for Fare Collection System Upgrade and
CITY OF SANTA MONICA
OAKS INITIATIVE DISCLOSURE FORM
In order to facilitate compliance with the requirements of the Oaks Initiative, the
City compiles and maintains certain information. That information includes the
name of any person or persons who is seeking a “public benefit.” If the “public
benefit” is sought by an entity, rather than an individual person, the information
includes the name of every person who is: (a) trustee, (b) director, (c) partner, (d)
officer, or has (e) more than a ten percent interest in the entity.
Public benefits include:
1. Personal services contracts in excess of $25,000 over any 12-month period;
2. Sale of material, equipment or supplies to the City in excess of $25,000 over a
12- month period;
3. Purchase, sale or lease of real property to or from the City in excess of
$25,000 over a 12- month period;
4. Non-competitive franchise awards with gross revenue of $50,000 or more
in any 12-month period;
5. Land use variance, special use permit, or other exception to an established
land use plan, where the decision has a value in excess of $25,000;
6. Tax “abatement, exception, or benefit” of a value in excess of $5,000 in any
12- month period; or
7. Payment of “cash or specie” of a net value to the recipient of $10,000 in any
12- month period.
Name(s) of persons or entities receiving public benefit:
Name(s) of trustees, directors, partners, and officers:
Name(s) of persons with more than a 10% equity, participation, or revenue interest:
Prepared by: Title:
Signature: Date:
Email: Phone:
Permit #
FOR CITY USE ONLY:
Bid/PO/Contract #
5.A.b
Packet Pg. 82 Attachment: SPX Genfare 2024 OAKS INITIATIVE FORM (5852 : Award Contract to SPX Genfare for Fare Collection System Upgrade and