TO: AC Transit Board of Directors
FROM: Salvador Llamas, General Manager/Chief Executive Officer
SUBJECT: City of Alameda Free Bus Pass Program
ACTION ITEM
AGENDA PLANNING REQUEST: ☐
RECOMMENDED ACTION(S):
Title
Consider authorizing the General Manager to execute a contract amendment to exercise two option years with the City of Alameda for its Free Bus Pass Program for Alameda Seniors and Persons with Disabilities.
Staff Contact:
Claudia Burgos, Interim Executive Director of External Affairs, Marketing & Communications
Body
STRATEGIC IMPORTANCE:
Goal - Financial Stability and Resiliency
Initiative - Financial Efficiency and Revenue Maximization
Extension of the Free Bus Pass Program for Alameda Seniors and Persons with Disabilities supports the District’s ridership recovery goals, provides a steady source of revenue and supports and further strengthens the District’s relationship with the City of Alameda and its policymakers.
BUDGETARY/FISCAL IMPACT:
Under this program, the District is paid in full for the number of total rides taken by participants. Additionally, the District is reimbursed for the additional administrative and direct costs, billed on a monthly basis. As of April 2025, there are 970 participants and a total of 442,875 trips recorded. With the program concluding its pilot, the District has invoiced $502,972.
BACKGROUND/RATIONALE:
Approved by the Board and launched as a three-year pilot program in 2022, the Alameda Free Bus Pass Pilot Program for Seniors and Persons with Disabilities was designed to assist disproportionately lower income Alameda residents with funding their transportation needs. The program has been widely viewed as a success, with enrollment and ridership growing each year.
As the City of Alameda explores opportunities to secure long-term funding and transition this pilot program into a permanent program, it is seeking to amend the existing contract to extend the pilot for an additional two years. This extension would allow the City time to solidify funding sources, with the goal of not only sustaining the current program but also expanding it to accommodate individuals currently on the waitlist and beyond.
Fares would be assessed by boarding at a senior or disabled Clipper rate. The City will be seeking approval for $690,000 from their City Council on July 1, 2025, for a two-year extension of the current contract. The $690,000 would allow up to 970 participants with an estimated ridership average of 22 rides per month in a Pay-per-Ride model, although invoicing will be based on actual boardings from Clipper cards.
As this is not a program identified in Board Policies 333 or 334, Board approval is required. The current contract allows for two, one-year optional extensions. Both the City and District desire to exercise both options now, extending the contract for two years. AC Transit’s “Pay-per-Ride” model provides adult or youth Clipper cards loaded with an institutional pass allowing for access to unlimited rides on AC Transit. Institutional passes are not available on senior or disabled cards in the current Clipper system, so the eligible population needs to be defined up front to allow for the proper ride pricing. Participant eligibility is determined and managed by the City of Alameda. This model could be extended to other cities that identify funding to cover the cost of the program in their Cities.
ADVANTAGES/DISADVANTAGES:
This is an opportunity for the District to continue its support of an important service to seniors and disabled riders in increasing the use of transit, focusing on seniors and people with disabilities with disproportionately lower income, potentially improving boarding time and fare collection.
ALTERNATIVES ANALYSIS:
The Board could opt to not extend this program and end the City of Alameda’s Free Bus Pass Program for Seniors and Persons with Disabilities. Ending this program would result in the loss of $690,000 in fare revenue and a loss of 970 riders, staff does not recommend this option.
PRIOR RELEVANT BOARD ACTION/POLICIES:
SR 22-130 City of Alameda Affordable Senior/Disabled Transit Pass Program
ATTACHMENTS:
1. Contract Amendment
Prepared by:
Debora Garcia, Customer Services Manager
Approved/Reviewed by:
Nichele Laynes, Director of Marketing, Communications & Customer Service
Claudia Burgos, Interim Executive Director of External Affairs, Marketing & Communications
Aimee L. Steele, General Counsel/Chief Legal Officer
Chris Andrichak, Chief Financial Officer