E-ZPass:A Case Study in Interagency Coordination

Linda M. SpockNYMTC Executive Development

March 13, 2009

It was (almost) 20 years ago today…

History was made at an IBTTA conference

Changed “AVI” to “ETTM”First meeting of toll agency headsVoluntary decision to work together

E-ZPass Interagency GroupOriginal “Member” Agencies

MTA Bridges and Tunnels(formerly Triborough Bridge and Tunnel Authority)

New Jersey Highway Authority(Garden State Parkway)

New Jersey Turnpike AuthorityNew York State Thruway AuthorityPennsylvania Turnpike CommissionPort Authority of NY & NJ(Hudson River crossings)

South Jersey Transportation Authority(Atlantic City Expressway)

®

Voluntary Efforts Kicked OffMid-1990

Executive-Level Commitment

Set Goals

Guide Activities

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

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

How E-ZPass Works:

Courtesy of Marilyn Mattei, PANYNJ

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

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

Interagency Committees Involved in Technology Selection

Procurement Technical Evaluation Negotiating Team Legal

Policy

Executive

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

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

Post- Selection Milestones

Individual agency acceptance of separate but identical Irrevocable Offers Implementation of E-ZPass on agency-specific timetablesFormal Interagency Operating Agreement

Updated information about E-ZPass provided by James A. Crawford, Executive Director of the E-ZPass Interagency Group or obtained from the IAG website athttp://www.e-zpassiag.com/

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

Today

TodayQuick 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.

HOW DID THE IAG GROW?

FIVE ASSOCIATE OR AFFILIATE MEMBERS HAVE BEEN ADDED

Joining the ?

Application

Transition

Operations

Application

Choose to JoinAgree to the Operating Agreement,

Reciprocity & Service Mark LicenseApplyPay Initial FeeApplication Acceptance

Transition

Develop System to meet IAG File SpecSet Up Back OfficeSet up Network LinkTest & VerifyIssue TranspondersDownload all Files

Operations

Nightly DownloadsNightly UploadsMonthly ReciprocityQuarterly CC FeesSubmit Data MonthlyParticipate in Committees

Expansion to E-ZPass PlusWhat 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 $20.00. 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

ROLE OF COMMITTEESEXECUTIVE MANAGEMENT COMMITTEE

CEO/COO or representativesAdopts Policy for IAGApproves New MembersApproves changes in AgreementsProvides Oversight to Legal CommitteeApproves Annual BudgetAppoints Executive Director

POLICY COMMITTEETop ETC Operating StaffFormulates Policy for IAGRecommends changes for various Agreements of IAGApproves the Policy MatrixProvides Oversight to other Committees

ROLE OF COMMITTEESLegal Committee

Reviews all approved documents of IAG and recommends changes where appropriateProvides advice to Policy and Executive Management CommitteeDrafts Operating Agreements

Technical CommitteeApproves all Hardware used by IAGRecommends vehicle placement locations for transpondersDevelops standards for hardware and softwareRecommends Procurement Criteria

ROLE OF COMMITTEESProcurement Committee

Assists in drafting any documents for Procurement of Services or for Hardware on behalf of entire IAGProvides advice to new members on various agreements and procurement issues

Finance CommitteeDevelops Annual BudgetRecommends any changes in Initiation or Annual FeesReviews ways to reduce costs for members

ROLE OF COMMITTEESOperations Committee

Follows issues concerning Plaza OperationsRecommends operational standards for toll plazasMaintains records on plaza configurationsProvides assistance to new members

PR & Communications CommitteeRecommends ways to protect service markRecommends modifications to Web sitesRecommends participation in marketing opportunitiesEvaluates use of Service Mark in signingConsiders outside opportunities involving use of Service Mark

TASK FORCESReciprocity Task Force

Includes CSC OperatorsAddresses issues involving interchanges of fundsCoordinates Testing for new Members and Relocated CSC’sAddresses technical issues involved in file transfersRecommends policy changes as appropriate

Next Generation Task ForceIdentified potential vendors and products for future of IAG ETCDeveloped an RFP for the acquisition of HardwareCoordinate responses to any questions asked in Proposal ProcessProvide framework for evaluation of proposals and selection of a final vendor

IAG Challenges

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

Future Issues

National vs. regional interoperability

Technological change, but with backward compatibility

More tolling for infrastructure

New frontiers in interoperability (ATI)

The Alliance for Toll Interoperability

To Promote and Implement Interoperability between Toll Operators for the Benefit of Customers and Agencies

“”

Mission:

E-ZPass Interagency Group

Keys to Success:– High level commitment to common

vision– Willingness to compromise and

adapt

Bottom Line:

+ = andNew Technology

Interagency Cooperation

Improved Service

Seamless Transportation

System in Action