Los Angeles, CA - October 29-31, 2007

Fall 2007 Conference
Los Angeles, CA
October 29-31, 2007

Downtown LA, photo by mureena on Flickr (Creative Commons permission)

TFLEx Workshop, Los Angeles, California October 29-31, 2007

You may view the presentations from this conference by following these links:

1. Greg Garback - WMATA Update on Fare Payment
2. Wes Wallace - MBTA CharlieCard
3. Roger Snoble - Metro Orange Line
4. Jane Matsumoto - LA Metro UFS-TAP Update
5. Joseph Simonetti - Bank Card Transactions and Merchant Processing
6. Nashville MTA - Accepting Credit Cards On-Board Buses

Summary Notes

The TFLEx Fall Workshop held in Los Angeles, California was extremely informative and a great success. TFLEx extends our sincere appreciation and a million thanks to Terry Matsumoto, Chief Financial Service Officer and Treasurer of the Los Angeles Metro and his whole organization for being the consummate hosts. Of course, Shawn Lowe, Administrative and Financial Services Manager, lead the hands-on preparation and coordinator for the workshop. She and all other staff "volunteered" were exceptional and made the entire process appear effortless and seamless. We appreciate all the hours given to this effort. Thank you All at Los Angeles Metro!

The theme of the two-day workshop centered on fare collection, the ever-changing technology and the challenges faced by the transit industry in selecting the most appropriate and efficient fare media and fare collection methods. The workshop presentations and discussion concentrated on industry trends in fare collection equipment and processing of fares - particularly credit and debit cards.

Greg Garback, Executive Officer, Finance from WMATA, Wesley Wallace, Controller from MBTA, and Jane Matsumoto, Project Manager, from L.A. Metro shared their agency's invaluable stories, the challenges they faced or are still facing, their successes, plus the myriad lessons learned as they worked through the long, arduous and cumbersome process of implementing their automated fare systems.

Joe Simonetti, Industry Consultant lead a discussion about the new-found interest among credit card companies to use their cards for transit related fare purchases. He discussed the costs and the benefits of accepting credit and debit cards. He detailed the bank card transaction pricing model and the processing and transaction flow. He also discussed the interchange rates and the transaction costs.

Following Simonetti's presentation, Ed Oliphant, CFO of Nashville MTA shared his agency's cutting edge pilot program for accepting credit cards on their buses and the experience they are having with the implementation of the pilot. He outlined and discussed the issues associated with this program in terms of impact on operations, maintenance, accounting and the implementation costs which include hardware and equipment requirements.

The participants discussed the value of having TFLEx serve as an industry representative for the member agencies and lead the effort to approach the credit card companies to discuss the potential for negotiating more reasonable transaction fees. The participants agreed this should be a project TFLEx should pursue. The leadership team will have to discuss and develop a strategy, a plan, and identify the team members who will execute the plan. Greg Garback is very involved in the transit/credit card processing field and can provide a great deal of assistance in this endeavor.

During the briefing on the status of the Budget and Grants Special Interest Groups, the participants discussed ways to improve the frequency of the calls and maintain interest and momentum. It was agreed that if we had co-leaders from different areas, it would ease the burden and if one of the leaders was not available on a scheduled date, the conference call could still be lead by the other leader. Michelle Caldwell, Deputy Executive Officer, Finance, from L.A. Metro stepped forward to take the co-leader role for the Budget SIG and Beverly LaBenske, Assistant Treasurer, DART, Dallas will serve as co-leader for the Grants SIG.

The participants agreed that the Transit 101 modules were valuable and needed to be updated. There is still interest to consider upgrading the modules to CPE compliance, although we need to consider the cost and the limit of the number of on-line credits allowed per year. The breakout session for the review of the modules produced viable recommendations for improving and, updating the modules.

Terry Cordell, CFO RTC of Southern Nevada, gave a detailed report of the implications and the potential impact of the SAFETEA-LU Reauthorization and other issues related to federal financing. All agencies were requested to review the FTA's Notice of Proposed Rulemaking for the New Starts program and submit comments. There are a number of issues in the new rules that seem to tilt the FTA towards funding HOT lanes and other toll type facilities at the expense of traditional New Starts projects. There was also discussion on the FY07 discretionary funding that resulted in grants to only five cities for congestion relief. All members were encouraged to make sure there CEO's were versed on this and make it a point to discuss it with their Congressional delegations to ensure that discretionary funds are allocated fairly throughout the country.

Terry Matsumoto, Chief Financial Service Officer and Treasurer of the Los Angeles Metro reported on the information he gathered from his participation in a Bond Buyer conference round table on the GASB 45 OPEB changes and the implications to the transit industry. LA Metro has done their actuarial valuation study and established an OPEB trust, with the first deposit to the trust in July 2007. The unfunded liability they are faced with is $583 million, with an Annual Required Contribution of $63 million. Current pay-as-you-go retiree expenses are $17 million. The question LA Metro faces (and, based on the discussion that ensued, faces all other public entities) is how to fund the ARC each year. One big concern in how rating agencies will look at the unfunded liability in the future. There was a great deal of discussion on this issue, resulting in the realization that every agency faces this issue and there is still a great deal of uncertainty on the "proper" approach.

This is an issue that members will continue to grapple with and will be discussed at future workshops.

All participants agreed that TFLEx workshops continue to provide timely, informative and useful information as well as outstanding networking opportunities. The next workshop will be hosted by WMATA in Washington D.C. The tentative dates are March 10-12, 2008. More information is forthcoming. Stay tuned.

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AGENDA (FINAL)
The meetings will all be held at The Metropolitan Water District Building, 700 N. Alameda Street, Los Angeles, 90012. The MWD building which is adjacent to Metro (LACMTA), and part of the Union Station complex. For those staying at the Hollywood Renaissance Hotel, take the Red Line from Hollywood & Highland to Union Station. Future of Fare Collection (Field of Study: Finance) The Future of Fare Collection (Field of Study: Finance) Program Content/Learning Objectives With ever changing technology for fare collection, selecting the most appropriate and efficient fare media and fare collection method continues to be one of the challenges facing the transit industry. This workshop will concentrate on industry trends in fare collection equipment and processing of fares - particularly credit and debit cards.After attending this conference, participants will be able to: Make better informed decisions on how fares are collected and processed by the agency. Understand the process for determining the type of fare media to utilize and the importance of having Finance as a business partner in the decision-making process. Understand the potential for using credit/debit cards for fare collection and the costs associated with merchant processing of those transactions. Identify recent legislative issues impacting the transit industry. Identify the accounting requirements of Government Accounting Standards Board statement 45 and the funding strategies best practices being contemplated in the transit industry. Identify and share best practices through "Needs & Leads" Group-Live Delivery Method Program Level: Advanced No Prerequisites* Pre-Conference Reading Material Provided Earn up to 14 CPE credits * This program is at an advanced level of continuing education. Although no prerequisite course or work experience is needed to participate in this program, working knowledge of finance and transportation practices and policies is required, as well as knowledge of the program topic. Transit-Finance Learning Exchange (T-FLEx) is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of accountancy have final authority on the acceptance of individual courses for CPE credit. Complaints regarding registered sponsors may be addressed to the National Registry of CPE Sponsors, 150 Fourth Avenue North, Suite 700, Nashville, TN, 37219-2417. Website: www.nasba.org Registration Information Hotel Renaissance Hollywood Hotel 1755 N. Highland Ave. Hollywood, CA 90028 Reservations: Contact Shawn Lowe at 213/922-2109 or lowes@mta.net Members MUST make their reservations through Shawn. Room rates are $110 plus tax, the government rate. Rooms are reserved for this conference for Sunday, Oct 28th - Tuesday, Oct 30th. Attendees MUST contact Shawn by Oct 8th to get the government rate. Workshop Fee $125 Enroll through the T-FLEx website www.tflex.org. See this website for payment instructions and other information. Attire Participants are encouraged to dress comfortably in business casual attire. Recommended reading All workshop registrants will receive materials in advance for preparatory reading. Members planning to participate in the Wednesday business meeting should review the T-FLEx business plan (on website) in advance. Please note: we will send materials in advance to workshop registrants for reading.
Day One Monday 10/29/2007
8:00 AM	Continental Breakfast
8:30 - 9:45 AM	Welcome and review meeting objectives Terry Cordell, T-FLEx Leadership Committee/CFO RTC of Southern Nevada, welcomes participants. Roger Snoble, CEO, LA Metro, welcomes workshop participants and provides an overview of the agency's East Side Light Rail project and the Orange line success story.
9:45 - 10:00 AM	Break
10:00 - 12:00 AM	Fare Collection Technology and Fare Media, Panel presentations from METRO, WMATA, MBTA Representatives from Los Angeles MTA, the "T" in Boston and Washington Metro discuss the implementation of their new automated fare systems (AFS). Following that will be a round-table discussion of new trends in fare collection. Time allowed includes Q&A and discussion.
Noon - 1:30 PM	Lunch
1:30 - 3:30 PM	Merchant Processing of Credit/Debit Card Transactions Industry consultant Joe Simonetti leads a discussion on the costs and benefits of accepting credit and debit cards. Ed Oliphant, CFO of Nashville MTA will give a presentation on their pilot program to accept credit and debit cards at the farebox. There will also be discussion of the potential to have T-FLEx spearhead an effort to approach Visa and MasterCard as an industry representative for more reasonable transaction fees. Time allowed includes Q&A, discussion, and allowance for break.
3:30 - 4:30 PM	Discussion of Alternative Revenue Funding Sources
4:30 PM	Wrap-up Day One
6:00 PM	Group Dinner/Outing
Day Two Tuesday 10/30/2007
8:00 AM	Continental Breakfast
8:30 - 9:15 AM	Status Reports Benchmark Project/Website - Ray Garton from DART will demonstrate the ease of use of the benchmarking module on the TFLEx website. Budget SIG Grants SIG Time allowed includes Q&A
9:15 - 10:45M	Transit 101/201 In groups at tables, members contribute to updating the content for several Transit 101 topics and develop concepts for Transit 201 topics.Members will then share these with the group and discuss plans for development of future content. Time includes allowance for break.
10:45 - 11:30 AM	The Potential Impact of SAFETEA-LU Reauthorization Terry Cordell, CFO RTC of Southern Nevada, will give an update on the reauthorization of this important six year transportation legislation, along with other industry-related issues discussed at the recent APTA Financial Management Committee meeting.
11:30 AM - 1:00 PM	Lunch
1:00 - 3:30 PM	Needs and Leads Facilitated discussion of learning and development needs and business practices that others can emulate. Time includes allowance for break.
3:30 - 3:45 PM	Break
3:45 - 4:30 PM	GASB 45 Terry Matsumoto, LAMTA, will discuss his participation in a recent Bond Buyer conference round-table on OPEB.
4:30 - 4:45 PM	Wrap-up Day Two and Overall Workshop Evaluation
Day Three Wednesday 10/31/2007 Business Meeting	Please note that attendance at the business meeting is a must for at least one representative of member agencies. Representatives must be authorized to speak for their agency during the meeting.
7:30 AM	Continental Breakfast
8:00-11:00 AM	Meeting Agenda: Action on new bylaws T-FLEx financial status/budget update Outline plans for Spring workshop in Washington. Line up Future sites for 2008-2009 Membership growth strategies, status, and prospects Follow up items/assignments

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The Future of Fare Collection
(Field of Study: Finance)

Program Content/Learning Objectives
With ever changing technology for fare collection, selecting the most appropriate and efficient fare media and fare collection method continues to be one of the challenges facing the transit industry. This workshop will concentrate on industry trends in fare collection equipment and processing of fares - particularly credit and debit cards.After attending this conference, participants will be able to:

• Make better informed decisions on how fares are collected and processed by the agency.
• Understand the process for determining the type of fare media to utilize and the importance of having Finance as a business partner in the decision-making process.
• Understand the potential for using credit/debit cards for fare collection and the costs associated with merchant processing of those transactions.
• Identify recent legislative issues impacting the transit industry.
• Identify the accounting requirements of Government Accounting Standards Board statement 45 and the funding strategies best practices being contemplated in the transit industry.
• Identify and share best practices through "Needs & Leads"

Group-Live Delivery Method
Program Level: Advanced
No Prerequisites*
Pre-Conference Reading Material Provided
Earn up to 14 CPE credits

* This program is at an advanced level of continuing education. Although no prerequisite course or work experience is needed to participate in this program, working knowledge of finance and transportation practices and policies is required, as well as knowledge of the program topic.

Transit-Finance Learning Exchange (T-FLEx) is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of accountancy have final authority on the acceptance of individual courses for CPE credit. Complaints regarding registered sponsors may be addressed to the National Registry of CPE Sponsors, 150 Fourth Avenue North, Suite 700, Nashville, TN, 37219-2417. Website: www.nasba.org

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Policy Statement (Group-Live)

Attendance Monitoring Process

To ensure compliance with NASBA standards for the reporting and record retention of CPE credits, the Transit-Finance Learning Exchange (T-FLEx) adheres to the following attendance monitoring guidelines:

1. Sign in/sign out sheets are required for all programs where CPE credit is offered.
1. Participants must sign in upon arrival and indicate their time of arrival.
2. Participants must sign out and indicate the time of their departure:
1. When they expect not to return even though the program has not formally concluded
2. When they will be absent from the program for a significant period of time
3. Upon conclusion of each break-out session, if applicable
4. Upon conclusion of the program
3. Sign in/sign out procedures do not need to be followed during scheduled breaks or meal periods.
2. Every program will be monitored by at least one (1) T-FLEx member who will greet each participant as they arrive and ensure that sign in/sign out procedures are adhered to. In addition to sign in/sign out procedures, attendance monitoring may also include a number count throughout the day by the T-FLEx official or program facilitator, where appropriate.
3. Certificates of completion will only be issued upon verification of attendance using sign in/sign out sheets and personal observation, if necessary.

Record Retention

The Transit-Finance Learning Exchange (T-FLEx) adheres to the record retention guidelines set forth by NASBA for approved CPE sponsors. Specifically, T-FLEx retains the following documentation for five years:

1. Records of participation
2. Dates and locations of presentations
3. Instructors, discussion leaders or program authors names and credentials
4. Number of CPE credits earned by participants
5. Results of program evaluations
6. Program materials
7. Evidence that the program materials were developed and reviewed by qualified parties
8. A record of how CPE credits were determined

Records are retained by designated T-FLEx members in a secured location or on secure computer applications. Only individuals who have a legitimate business reason are provided access. T-FLEx acts in accordance with applicable laws in the purging and destruction of personal and confidential information.

Questions or comments regarding T-FLEx's record retention policy should be addressed to:

Refunds, Cancellations, Substitutions and Complaint Resolution

• Cancellations will be accepted at any time. Registrants have the option of receiving a full refund or having the amount applied to a future workshop. All cancellation requests should be directed to:
  
• Substitutions from within the same institution are permitted at no additional cost.
• In the event T-FLEx cancels a program, participants will be notified and refunds will be provided. Information will also be posted on the Web site, www.tflex.org.
• If there are complaints about a T-FLEx event, contact:
  

Questions regarding this cancellation policy can be addressed to: