1. Ticketing Vending Machines Capital Metro Board of Directors Finance, Audit & Administration Committee April 13, 2016 Information Technology 1 Joe Iannello

2. Ticketing Vending Machines Background We have 18 Ticket Vendor Machines (TVM’s) at our 9 MetroRail Stations (2 at each station) The cost of maintaining these machines - especially to support ongoing bank card (credit/debit cards) processing security - is increasing significantly A cost analysis of the next five years indicates that we would spend $4.6 million to maintain the use of credit/debit cards That cost would be almost equal to the expected revenue ($4.9 million) from those machines using credit/debit cards Alternatively, use our mobile ticketing app (and website) for credit/debit card transactions and use of the TVM’s for cash only (and smart cards) saves $4.3 million over that five-year period capmetro.org | IT 2

3. Ticketing Vending Machines Analysis capmetro.org | IT 3

4. Ticketing Vending Machines Plan Use TVM’s for cash only (and smart cards - which can be purchase at retail outlets such as HEB) Use mobile ticketing app for credit/debit cards instead of TVM’s Schedule: – May – June, 2016: Customer Notification Campaign: push out messaging (station signage, social media, etc.) to customers during May – June – July, 2016: Turn off TVM credit/debit card capabilities – Starting July, 2016 (during transition): Customer Service representatives at rail stops to facilitate the transition and will have the ability to provide tickets and take credit cards via an Apple Square and will encourage use mobile ticketing app capmetro.org | IT 4

5. Ticketing Vending Machines Additional Info capmetro.org | IT 5

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