Pay Station EMV Chip Reader & Processor Upgrades

Agenda Item 8C CITY OF FERNDALE REQUEST FOR COUNCIL ACTION FROM: SUBJECT: Joseph Gacioch, Assistant City Manager Pay Station EMV Chip Reader & Processor Upgrades SUMMARY & BACKGROUND: A change in credit card data encryption standards issued by the National Institute of Standards and Technology has resulted in new Payment Card Industry (PCI) requirements. The PCI Council has recently published direction for new security standards to be adopted by merchants that accept payment via credit card. A notable change is the requirement to accommodate the new EMV chip that is now included on all/most consumer credit cards. What is the EMV Chip Card? EMV stands for Europay, MasterCard, and Visa. The EMV Chip was introduced to credit cards to create a world-wide standard for integrated circuits cards that are used for credit card authentication. The chip standard has been in place in Europe since 2005 and Canada since 2012. Payment data is read from the chip instead of the magnetic stripe. This protects against fraud in two ways: (1) The chip itself is more expensive and difficult to counterfeit, (2) the way the payment data is transmitted varies each time, which makes it more dynamic than static, a challenge for counterfeiting. This solution will not end the threat of counterfeiting, but it will make it more challenging. City EMV Adoption: The City of Ferndale has 34 parking pay stations deployed throughout our downtown. One of the primary benefits of these stations is their versatility in payment options, including credit cards. Credit card payments now account for over 50% of system wide parking revenues from the pay stations. In light of the high volume of transactions and the numerous touch points throughout the city, I am recommending that the City upgrade our current equipment to accommodate the new encryptions standards this summer. If approved, we expect all of the controllers and equipment to be installed by October, 2016. The Parking Department will work with our Director of Community Engagement and the DDA on a communications plan to promote the new acceptance of chip cards. Upgrades for each station s controller and modem are also included in this quote. The modem upgrades are expected to improve the connectivity of the machines to the network which should also improve performance. This controller/modem are the new standard for this model pay station.

Capital Improvement Plan: CIP Cycle CIP ID# Budget Year Project Type Funding Source Estimated Costs Grant Total City Costs FYE 2017-2021 18 FYE 2017 Security & Compliance Upgrade 585 Auto Parking Fund $110,000 N/A $110,000 This project was included in the FYE 2017 CIP update and budget recommendation. ATTACHMENTS: Quote: Traffic N Safety FYE 2017 CIP Project Index CIP Project Application COUNCIL AGENDA DATE: July 11, 2016 CITY ATTORNEY REVIEW: FINANCE DIRECTOR REVIEW: CITY MANAGER REVIEW: RECOMMENDED ACTION: Moved by, seconded by, to approve the purchase of the Luke II pay station upgrades for an amount of $110,000 to be charged to the Auto Parking Fund, Capital account number 585-000- 977-000.

Traffic & Safety Control Systems, Inc. July 5, 2016 The City of Ferndale, Michigan 300 East Nine Mile Road Ferndale, Michigan 48220 (248) 546 2525 Dear Mr. Gacioch- Subject: LUKE II UPGRADES At your request, the following quote details costs and labor to upgrade the current City of Ferndale LUKE II parking pay stations. Please review and advise should you have any questions. Upgrade Controllers to V5 / Internal Verizon Modem / Upgrade Software (34) LUKE pay stations = Install Version 5 Controllers *Software upgrade and Controller Upgrade (34) LUKE Verizon Internal Modems Description Line Total LUKE Upgrades / Equipment $ 108,250.00 Labor Cost $ 16,150.00 Total $ 124,400.00 Discount if PO is received before Aug 15 2016 $ 14,400.00 TOTAL with discount $ 110,000.00 Installation to include the following: 1. Upgrade LUKE II Pay Stations. Install all listed equipment. 2. Final tune-in, testing, and checkout of system. Notes: 1. Terms are net 10 days, F.O.B. Wixom, MI, 6% sales tax will be added if applicable. 2. Phone line fees are not included / Activation of modems and monthly services are available if desired.. Please let me know if I may be of further service to you. I look forward to hearing from you in the near future. Thank you, Tom Neff Traffic and Safety Sales Representative 248-756-7027 tomn@trafficandsafety.com 48584 Downing Wixom, MI 48393-3501 (248) 348-0570 FAX (248) 348-6505 www.trafficandsafety.com

6/28/2016 2017-2021 2017-2021 CAPITAL IMPROVEMENT PLAN AGGREGATE SPREADSHEET TOTAL TOTAL FUTURE FYE 2017 FYE 2018 FYE 2019 FYE 2020 FYE 2021 fye 2022 PROJECT POTENTIAL PROJECT CITY CITY CITY COST PROJECT CITY PROJECT CITY PROJECT CITY PROJECT CITY PROJECT CITY PROJECT CITY PROJECT PROJECT NUMBER AND NAME TYPE FUNDING SOURCE(S) COSTS SHARE COST (2014-2019) COST COST COST COST COST COST COST COST COST COST COST COST NUMBER 202/203 - Major & Local Roads: 37 Plow and EZ Dumpster Box Scheduled Replacement Major Roads 359,000 100% 359,000 359,000 10,000 10,000.00 339,000 339,000 - - - - - - 10,000 10,000 50 Pinecrest Resurfacing Construction Federal Grant/Major & Local Streets 565,000 100% 565,000 565,000 $ 226,000.00 226,000.00 339,000 339,000 38 Local Streets crack sealing Rehabilitation Act 51 489,000 100% 489,000 489,000 $ 150,000.00 150,000.00 339,000 339,000 34 Plow and EZ Dumpster Box Local Roads 359,000 100% 359,000 359,000 10,000 10,000.00 339,000 339,000 - - - - - - 10,000 10,000 36 Major road striping Rehabilitation Act 51 454,000 100% 454,000 454,000 115,000 115,000.00 339,000 339,000 Hilton Rd. resurface (8-9 mile): lane reductions, bike 48 lanes, added parking Constuction Act 51 1,439,232 58% 834,754.56 834,755 1,439,232 834,754.56 - Hilton Rd. resurface (8-9 mile): lane reductions, bike 47 lanes, added parking Engineering Act 51 172,040 100% 172,040.00 172,040 172,040 172,040.00-49 Pinecrest Resurfacing Engineering Act 51 186,000 100% 186,000.00 186,000 76,000 76,000.00 110,000 110,000 35 Major Streets crack sealing Rehabilitation Act 51 389,000 100% 389,000 389,000 50,000 50,000.00 339,000 339,000 MAJOR ROAD TOTALS Subtotal $ 4,412,272 86.30% 3,807,795 $ 3,807,795 $ 2,248,272 $ 1,643,795 $ 1,356,000 $ 1,356,000 $ - $ - $ - $ - $ - $ - $ 20,000 $ 20,000 592 - Water and Sewer Maintenance: 53 MCM App & Database Server RScheduled Replacement Water & Sewer Fund 20,000 100% 20,000 20,000 $ 20,000.00 20,000 - - - - - 53.00 54 Water Dept. server room Access Control Water & Sewer Fund 15,000 100% 15,000 15,000 $ 15,000.00 15,000 - - - - - 54.00 41 Lennox Water Main Lining Scheduled Replacement Water & Sewer Fund 474,000 100% 474,000 474,000 $ 474,000.00 474,000 - - - - - 41.00 40 Sewer Camera Lift New Equipment/Efficienc Water & Sewer Fund 13,000 100% 13,000 13,000 $ 13,000.00 13,000 - - - - - 40.00 64 Pump Station Surveillance Scheduled Replacement Water & Sewer Fund 42,000 100% 42,000 42,000 $ 42,000.00 42,000 Pilgrim water main replacemenscheduled Replacement Water & Sewer Fund 565,000 100% 565,000 565,000 - $ 565,000.00 565,000 - - - - Orchard Water main replacemescheduled Replacement Water & Sewer Fund 448,000 100% 448,000 448,000 - $ 448,000.00 448,000 - - - WATER & SEWER TOTALS Subtotal $ 1,577,000 100% $ 1,577,000 $ 1,577,000 $ 564,000 $ 564,000 $ 1,013,000 $ 1,013,000 $ - $ - $ - $ - $ - $ - $ - $ - - 296 - Cable Department 54 Temperate Control in Studio Security PEG Funds 10,000 100% 10,000 10,000 10,000 10,000 - - - - - 54.00 55 Studio Sound Board Performance PEG Funds 10,000 100% 10,000 10,000 10,000 10,000 - - - - - 55.00 56 AT&T Encoder replacement Scheduled Replacement PEG Funds 12,000 100% 12,000 12,000 12,000 12,000 - - - - - 56.00 57 Scheduled Comcast Encoder Replacement 15,000 100% 15,000 15,000 15,000 15,000 - - - - 57.00 59 Graphics Server Efficiency 10,000 100% 10,000 10,000 10,000 10,000 - - - - 59.00 58 Electrical Grounding Safety PEG Funds 10,000 100% 10,000 10,000 10,000 10,000 - - - - - 58.00 CABLE DEPARTMENT TOTALS Subtotal $ 67,000 100% $ 67,000 $ 67,000 $ 42,000 $ 42,000 $ 25,000 $ 25,000 #REF! #REF! #REF! #REF! #REF! #REF! #REF! #REF! Sidewalk Replacement Projects 24 S.A.D. Program Safety DPW 289,000 100% 289,000 289,000 289,000 289,000 - - - - - 24.00 SIDEWALK REPLACEMENT PROJECTS TOTALS Subtotal $ 289,000 100% 289,000 $ 289,000 $ 289,000 $ 289,000 #REF! #REF! #REF! #REF! #REF! #REF! #REF! #REF! #REF! #REF! 750 - City Parks 44 Curling Club parking lot Safety General Fund 211,000 100% 211,000 211,000 211,000 211,000 - - - - - 44.00 45 Geary Park Parking Lot Safety General Fund 99,000 100% 99,000 99,000-99,000 99,000 45.00 46 Martin Rd. Parking lot Safety General Fund 180,000 100% 180,000 180,000-180,000 180,000 - - - - 46.00 42 Safety Town: Garbutt Park Safety General Fund 50,000 100% 50,000 50,000 50,000 50,000 - - - - - 42.00 CITY PARKS TOTALS Subtotal $ 540,000 100% 540,000 $ 540,000 $ 261,000 $ 261,000 $ 279,000 $ 279,000 $ - $ - $ - $ - $ - $ - $ - $ - 441 - DPW 33 Dump Truck Financing General Fund 250,000 100% 250,000 250,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 - - 33.00 32 Tractor Loader Financing General Fund 200,000 100% 200,000 200,000 40,000 40,000 40,000 40,000 40,000 40,000 40,000 40,000 40,000 40,000 - - 32.00 26 Yard Gate System Security General Fund 12,000-31 City Tree Inventory Sustainability General Fund 12,000-14 City Hall/PD Generator Disaster Management General Fund 225,000 100% 225,000 225,000 225,000 225,000 - - - - - 14.00 28 City hall Window Replacement Efficiency General Fund 77,000 100% 77,000 77,000 77,000 77,000 - - - - - 28.00 11 Fuel Management Software update Obsolete equipment replacement General Fund 100,000 100% 100,000 100,000 100,000 100,000 - - - - - 11.00 27 Sign Making Table Efficiency General Fund 5,100 100% 5,100 5,100 5,100 5,100 - - - - - 27.00 DPW TOTALS Subtotal $ 857,100 100% 857,100 $ 857,100 $ 521,100 $ 497,100 $ 90,000 $ 90,000 $ 90,000 $ 90,000 $ 90,000 $ 90,000 $ 90,000 $ 90,000 $ - $ -

6/28/2016 2017-2021 2017-2021 CAPITAL IMPROVEMENT PLAN AGGREGATE SPREADSHEET TOTAL TOTAL FUTURE FYE 2017 FYE 2018 FYE 2019 FYE 2020 FYE 2021 fye 2022 PROJECT POTENTIAL PROJECT CITY CITY CITY COST PROJECT CITY PROJECT CITY PROJECT CITY PROJECT CITY PROJECT CITY PROJECT CITY PROJECT PROJECT NUMBER AND NAME TYPE FUNDING SOURCE(S) COSTS SHARE COST (2014-2019) COST COST COST COST COST COST COST COST COST COST COST COST NUMBER 215 - Elections 8 Poll book replacement State mandate General Fund 60,000 100% 60,000 60,000 60,000 60,000 - - - - - 8.00 7 Dual EPB laptops for election workers Efficiency General Fund 10,000 100% 10,000 10,000-10,000 10,000 - - - - 7.00 ELECTIONS TOTALS Subtotal $ 70,000 100% 70,000 $ 70,000 $ 60,000 $ 60,000 $ 10,000 $ 10,000 $ - $ - $ - $ - $ - $ - $ - $ - 350 - Streets & Parks Bond 51 2016 Pavement Repair Program Pavement rehab 2016-2026 Road Bonds 5,125,000 100% 5,125,000 5,125,000 5,125,000 5,125,000 - - - - - 51.00 52 2017/18 Street bond projects: engineering/construction Streets 2016-2026 Road Bonds 4,600,000 100% 4,600,000 4,600,000 2,215,000 2,215,000 2,385,000 2,385,000 - - - - 52.00 2 Harding Park Improvements Parks bond project Streets & Parks Bond 75,000 100% 75,000 75,000 - - 75,000 75,000 - - - - 2.00 1 Martin Road Park Improvements Parks bond project Streets & Parks Bond 75,000 100% 75,000 75,000 - - 75,000 75,000 - - - - - 1.00 STREETS & PARKS BOND TOTALS Subtotal $ 9,875,000 100% $ 9,875,000 $ 9,875,000 $ 7,340,000 $ 7,340,000 $ 2,535,000 $ 2,535,000 $ - $ - $ - $ - $ - $ - $ - $ - 179 - Information Technology 13 Motorpool Cameras and Access Control Safety General Fund 20,000 100% 20,000 20,000 20,000 20,000 - - - - - - - 13.00 59 City Hall Data Center: Server Disaster Management General Fund 20,000 100% 20,000 20,000 20,000 20,000 - - - - - 59.00 60 Citywide Meracki Firewall update Network Security General Fund 25,000 100% 25,000 25,000-25,000 25,000 60.00 17 Link Aggregation for Chourthouse IT Network Redundancy General Fund 2,500 100% 2,500 2,500 2,500 2,500 - - - - - 17.00 61 Work Station replacement Scheduled replacement General Fund 135,000 100% 135,000 135,000 15,000 15,000 30,000 30,000 30,000 30,000 15,000 15,000 15,000 15,000 30,000 30,000 61.00 15 City Hall Wireless Network Augmentation Network Efficiency General Fund 10,000 100% 10,000 10,000 10,000 10,000 - - - - - 15.00 INFORMATION TECHNOLOGY TOTALS Subtotal $ 212,500 100% $ 212,500 $ 212,500 $ 67,500 $ 67,500 $ 55,000 $ 55,000 $ 30,000 $ 30,000 $ 15,000 $ 15,000 $ 15,000 $ 15,000 $ 30,000 $ 30,000 585 - Auto Parking Fund 18 Luke Paystation PCI Compliance Upgrades Parking Compliance Upgrade Auto Parking Fund 115,000 100% 115,000 115,000 115,000 115,000 - - - - - 18.00 21 Resurface E. Breckenridge and W. Breckenridge Safety Auto Parking Fund 243,000 100% 243,000 243,000 243,000 243,000 - - - - - - - - - 21.00 22 Purchase of 7 new Luke stations for 9 Mile Safety Auto Parking Fund 110,000 100% 110,000 110,000 110,000 110,000 - - - - - - 22.00 Luke Paystation (7) Woodward Efficiency Auto Parking Fund 110,000 100% 110,000 110,000 - - 110,000 110,000 - - - - - - - - AUTO PARKING TOTALS Subtotal $ 578,000 100% 578,000 $ 578,000 $ 468,000 $ 468,000 $ 110,000 $ 110,000 $ - $ - $ - $ - $ - $ - $ - $ - 805 -Recreation Curling Club roof Sustainability General fund 160,000 100% 160,000 160,000-160,000 160,000 - - - - - - Boiler Replacement Sustainability General fund 150,000 100% 150,000 150,000-150,000 150,000 - - - - - - - RECREATION TOTALS Subtotal $ 310,000 100% 310,000 $ 310,000 $ - $ - $ 310,000 $ 310,000 $ - $ - $ - $ - $ - $ - $ - $ - 336- Fire 20 Fire Engine Fire Department Vehicle replacement General Fund 687,500 100% 687,500 687,500 137,500 137,500 137,500 137,500 137,500 137,500 137,500 137,500 137,500 137,500-20.00 Zero Lift Safety General Fund 50,000 100% 50,000 50,000 50,000 50,000 - - - - - - 43 Roof Sustainability General Fund 170,000 100% 170,000 170,000 170,000 170,000 - - - - - 43.00 6 TIC - Thermal Image Cameras Fire Rescue Safety Federal Grant 26,874 10% 2,687 2,687 26,874 2,687 - - - - 6.00 5 RIT / RIC Rescue Packs Fire Rescue Safety Federal Grant 12,627 10% 1,263 1,263 12,627 1,263 - - - - 5.00 4 PPE - Personal Protective Equipment Fire Rescue Safety Federal Grant 81,050 10% 8,105 8,105 81,050 8,105 - - - - 4.00 3 SCBA - Self Contained Breathing Apparatus Fire Rescue (30) Safety Federal Grant 154,615 10% 15,462 15,462 154,615 15,462 - - - - - - - 3.00 FIRE TOTALS Subtotal $ 1,182,666 79% 935,017 $ 935,017 $ 632,666 $ 385,017 $ 137,500 $ 137,500 $ 137,500 $ 137,500 $ 137,500 $ 137,500 $ 137,500 $ 137,500 $ - $ - 265- Police & Drug Forfeiture 29 4 Police Cruisers Scheduled replacement General fund 324,000 100% 324,000 324,000 108,000 108,000-108,000 108,000-108,000 108,000-29.00 Body cameras New Operation Drug Forfeiture 50,000 100% 50,000 50,000 50,000 50,000 - - - - 30 In Car Laptop/installation brackets Scheduled replacement General fund 38,100 100% 38,100 38,100 10,000 10,000 2,700 2,700 2,700 2,700 2,700 2,700 10,000 10,000 10,000 10,000 30.00 POLICE & DRUG FORFEITURE TOTALS Subtotal $ 412,100 100% 412,100 $ 412,100 $ 168,000 $ 168,000 $ 2,700 $ 2,700 $ 110,700 $ 110,700 $ 2,700 $ 2,700 $ 118,000 $ 118,000 $ 10,000 $ 10,000

Department Total Capital Expense City Portion Capital Expens% Major Road Construction: $ 2,248,272.00 $ 1,643,794.56 Water and Sewer Maintenance: $ 564,000.00 $ 564,000.00 Cable Department $ 42,000.00 $ 42,000.00 Sidewalk Replacement Projects $ 289,000.00 $ 289,000.00 City Parks $ 261,000.00 $ 261,000.00 ELECTIONS TOTALS $ 60,000.00 $ 60,000.00 Streets & Parks Bond $ 2,535,000.00 $ 2,535,000.00 Information Technology $ 67,500.00 $ 67,500.00 Auto Parking Fund $ 468,000.00 $ 468,000.00 Recreation $ - $ - Fire $ 632,666.00 $ 385,016.60 265- Police & Drug Forfeiture $ 168,000.00 $ 168,000.00 Sanitation $ 49,000.00 $ 49,000.00 FYE 2017 $ 7,384,438.00 $ 6,532,311.16

FYE 2017 CIP Summary Sanitation 265- Police & Drug Forfeiture $49.000 $168.000 Fire $385.017 Recreation $0.000 Auto Parking Fund $468.000 Information Technology $67.500 Streets & Parks Bond ELECTIONS TOTALS $60.000 City Parks Sidewalk Replacement Projects $261.000 $289.000 Cable Department $42.000 Water and Sewer Maintenance: $564.000 Major Road Construction: $1,643.795 $- $500.00 $1,000.00 $1,500.00 $

$2,535.000 5 $2,000.00 $2,500.00 $3,000.00 THOUSANDS

2017-2021 Capital Improvement Plan Submitted On: Mar 7, 2016 @ 9:25AM Submitted By: Joseph Gacioch Project Information: Luke Paystation PCI Compliance Upgrades Parking Budget Year(s): FYE 2017 Motor Pool Project?: No Budget Account Number (xxxxxx-xxx-xxx): 585-000-977-000 Funding Source: Auto Parking Fund Planning Context: Is the project part of an Adopted Plan?: None - Capital Operations Replacement Budget Priority Rating: 4.5 Prepared By: Date Submitted: Joseph Gacioch March 07, 2016 09:21 AM Project Description: Describe what the project is, beginning and ending dates. If the project will take several years, please include the expected timeline.: A change in credit card data encryption standards issued by National Institute of Standards and Technology (NIST), has resulted in new PCI requirements. These new PCI compliance mandates will take effect on December 31st, 2016. The City of Ferndale Luke Pay Station system will require upgrades before this date in order to stay PCI compliant and continue communicating. Capital Cost Estimate:: Grant Funding?: 57,630 Quote None Cost Allocations: 85,810 Estimated annual ongoing costs: Equipment Description: Acquisition Type:: Unit Details: credit card processing fees: $65,000, cellular network fees - $7,000 - annual Software, Modem updates City surface lots Purchase 68 5 years Purpose of Expenditure:: New Operation Present Equipment Obsolete Efficiency Improvement Increased Safety Customer Service Improvement Upload supporting files: Cut sheets, images, plans, etc...: https://cdn.filestackcontent.com/jcxllkguqjyxrzwetuif

Name: Joseph Gacioch Email: jgacioch@ferndalemi.gov Sign Here: CIPID#: 0018