Authorize Concurrence of the Bay Area Toll Authority’s Award of Contracts to Rent A Toll, Ltd., and to Highway Toll Administration, LLC, for Automated Rental Car Toll Payment Through the Fastrak® System

In a memorandum to Committee, Auditor-Controller Joseph Wire and General Manager Celia Kupersmith reported on staff’s recommendation that the Board of Directors authorize concurrence of the Bay Area Toll Authority (BATA) award of contracts to Rent A Toll, Ltd., and to Highway Toll Administration, LLC, for automated rental car toll payment through the regional FasTrak® system for a period not to exceed five (5) years.

The report stated that, under a Cooperative Agreement, the District is a partner with BATA for the operation and management of the FasTrak® Regional Customer Service Center (CSC). The CSC manages automated toll collection and processes toll violations for all Bay Area toll facilities. The Cooperative Agreement requires the District’s concurrence in the award of contracts to Rent A Toll, Ltd., and to Highway Toll Administration, LLC. The report noted that, on February 13, 2009, the Board authorized concurrence of the BATA award of contract to PlatePass, LLC, to provide toll payment services for the Hertz rental car company. In order to expand rental car agency coverage, BATA has negotiated contracts with Rent A Toll, Ltd., and to Highway Toll Administration, LLC. Rent A Toll Ltd., has established agreements with Dollar and Thrifty rental car agencies, and Highway Toll Administration has established agreements with Avis/Budget, National, Alamo and Enterprise rental car agencies. All three programs are provided to other toll collection agencies nationwide.

The report also stated that rental vehicles account for approximately 4% of all violations, which is approximately 12,000 year at the Golden Gate Bridge. Under current processes, when a rental car customer is a toll violator, the CSC sends a violation notice to the rental car agency and in turn, the rental car agency provides the name and address of the rental car customer to the CSC. The process, which is costly and time consuming for the CSC and expensive for the customers, will be eliminated with these programs. The staff report provided the details of the automated methods for collecting tolls from rental vehicles when the drivers do not have a FasTrak® account. If a rental agency customer does not wish to participate in the program, they need only pay their toll in cash.

There is no negative fiscal impact for this action for the District; however, it is anticipated that the program will decrease costs over time as a result of reducing the amount of toll violation processing required for rental car vehicles. A copy of the staff report is available in the Office of the District Secretary and on the District’s web site.

Discussion ensued, including the following comments and inquiries:

• Director Cochran made the following comments and inquiries:

  • He requested the details as to how would BATA reimburse the District for these transactions. In response, Mr. Wire stated that if a rental vehicle travels through a Fastrak® lane, a picture will be taken of the license plate and then the information is compared to a database. Mr. Wire stated that if the license plate is from a participating rental car agency, the toll is paid by PlatePass, LLC, Rent A Toll, Inc., or Highway Toll Administration.
  • He inquired as to whether the implementation of the new automated rental car toll payment process would eliminate the 4% of toll violations from rental vehicles. In response, Mr. Wire stated that the 4% would not completely disappear due to a handful of small rental car agencies that are not participating in this program, but it is anticipated that this process could recover most of the losses.

Staff recommended and the Committee concurred by motion made and seconded by Directors COCHRAN/SOBEL to forward the following recommendation to the Board of Directors for its consideration:

RECOMMENDATION

The Finance-Auditing Committee recommends the Board of Directors authorize concurrence of the Bay Area Toll Authority’s award of contracts to Rent A Toll, Ltd., and to Highway Toll Administration, LLC, for automated rental car toll payment through the FasTrak® system, for a period not to exceed five years.

Action by the Board at its meeting of July 10, 2009 - Resolution
NON-CONSENT CALENDAR

AYES (9): Chair Stroeh; Directors Cochran, Elsbernd, Grosboll, Kerns, Newhouse Segal, Reilly and Sobel; President Boro (Ex Officio)
NOES (0): None
ABSENT (2): Directors Eddie and Moylan; Vice Chair Pahre

2.

Public Comment

There was no public comment.

Adjournment

All business having been concluded, the meeting was adjourned at 9:53 a.m.