TO: AC Transit Board of Directors
FROM: Salvador Llamas, General Manager/Chief Executive Officer
SUBJECT: Public Hearings: Draft Contingency Service Plan
ACTION ITEM
AGENDA PLANNING REQUEST: ☐
RECOMMENDED ACTION(S):
Title
Hold public hearings to receive public comment on the Draft Contingency Service Plan.
Staff Contact:
Ramakrishna Pochiraju, Chief Planning & Development Officer
Claudia Burgos, Chief External Affairs Officer
Body
STRATEGIC IMPORTANCE:
Goal - Financial Stability and Resiliency
Initiative - Financial Efficiency and Revenue Maximization
Holding public hearings will allow the Board to receive and consider public comments on the Draft Contingency Service Plan. The Draft Contingency Service Plan would only be implemented with Board approval and if new, sustainable funding is not secured by the end of 2026. If, in December 2026, the Board acts to implement the Draft Contingency Service Plan, service changes would be implemented in June 2027. The proposed service changes in the Draft Contingency Service Plan are designed to reduce AC Transit's operating costs by an estimated $53 million. This would balance the budget in anticipation of annual deficits averaging $50 million beginning in FY 2027-28.
The proposed change to Line 95 is in line with the District’s goals of Safe and Secure Operations and Convenient and Reliable Service.
BUDGETARY/FISCAL IMPACT:
The Public Hearings have a combined estimated cost of $6,000 for interpreters and staff resources.
Based on the District’s most recent deficit projections, staff prepared a Draft Contingency Service Plan which was approved by the Board on June 10, 2026, and contains service reductions totaling $53 million. Under this plan, service would be reduced by 16.4%. Staff can scale back service cuts if additional resources are identified.
BACKGROUND/RATIONALE:
On Wednesday, August 12, 2026, the Board voted to hold hybrid (in-person and via Zoom) Public Hearings regarding the Draft Contingency Service Plan on Wednesday, October 14, 2026, at 2:00 p.m. and 6:00 p.m., at AC Transit’s General Office. The Public Hearings will also cover comments regarding service on new street segments associated with a routing change to Line 95.
Development of Draft Contingency Service Plan
At the March 25, 2026, meeting, the AC Transit Board of Directors approved an Alternate Service Plan Framework based on the recently updated Board Policy 545 (Service Standards). The framework, detailed in Staff Report 26-090, includes the five elements listed below:
1) Maintain the Realign network
2) Minimize complete service eliminations
3) Focus on span and frequency reductions
4) Restructure high-cost services
5) Proportionately reduce service in Special District 1 (SD 1) and Special District 2 (SD 2)
At the June 10, 2026, meeting, staff presented and the Board approved the Draft Contingency Service Plan, which was developed using the framework elements and a review of existing conditions, for consideration at a future public hearing. More detail on the specifics is included in Attachment 2 and is available on the District’s website at actransit.org/contingency-plan.
If approved for implementation, the Draft Contingency Service Plan assumes that frequencies of individual lines could be adjusted after final Board adoption of the service changes by as much as five minutes based on layover constraints and real-world operating conditions as staff implements the plan and meets the targeted cost savings.
Title VI Analysis
Staff provided the draft Title VI analysis previously reviewed by the Board when setting the Public Hearings as Attachment 3. It should be noted that Executive Order 14282, Restoring Equality of Opportunity and Meritocracy, was signed by President Trump on April 23, 2025, which removes the requirement for agencies to conduct a disparate impact service equity analysis. Although Board Policy 518 still requires a service equity analysis, since it is no longer required under Federal law, the Board could choose to waive this requirement. Staff’s recommendation, however, is to proceed with the Title VI analysis. The draft analysis found no disparate impact and no disproportionate burden. While the analysis in Attachment 3 aligns with current District Title VI policy, staff will ensure the final draft of the service equity analysis properly aligns with any policy updates approved by the Board.
Community Engagement
Since the Board adopted the Alternative Service Plan on March 25, the Department of Legislative Affairs & Community Relations has led sustained districtwide outreach to keep the public informed and engaged. At this time this report was submitted District staff were on track to participate in nearly 140 outreach events and/or presentations by the October 14 Public Hearing.
Through city council presentations, summer festivals, community meetings, and bus ride-alongs with the General Manager, staff and Board Directors have connected with thousands of residents and civic leaders. These conversations helped explain how the Draft Contingency Service Plan was developed, outlined the agency’s budget challenges, and underscored AC Transit’s essential role in supporting East Bay mobility, economic vitality, public health, and sustainability.
Additionally, AC Transit hosted three open houses prior to regular Board meetings - on June 10, August 12, and October 14. These sessions offered clear, accessible information and invited further public input on the Draft Contingency Service Plan. A summary of public outreach events conducted can be found in Attachment 6. Public input was initially received through an online survey and later, after the Board opened the public hearing window, through the eComment function on the AC Transit Meetings page. A summary of public outreach and input received via the survey can be found in Attachment 5 to Staff Report 26-090b. A comprehensive summary of written and verbal feedback received since the Board opened the public comment period on August 12 will be presented in advance of Board approval of a final plan. As of September 24, 114 written and verbal comments were entered through the District’s eComment link on the Public Meetings Page.
Complimentary to the public outreach, the District:
• Established a dedicated webpage providing clear information about the Draft Contingency Service Plan.
• Launched a dedicated FAQ website that offers employees clear, reliable information on AC Transit’s budget outlook, the drivers of the deficit, and the purpose of the Draft Contingency Service Plan.
• Issued a press release and an official Public Notice ahead of the October 14 Public Hearing.
• Sent multiple eNews messages to 23,000 subscribers. Those messages were amplified by elected officials, municipalities, and community groups.
• Mailed 1,500 brochures to libraries and city and county offices throughout the service area.
• Promoted the October 14 Public Hearing via onboard messaging.
Attachment 7 provides a sample of the materials produced to raise community awareness about the Draft Contingency Service Plan and October 14 Public Hearing.
Project Schedule
The following chart depicts project milestones to date and key dates for future actions should the District’s fiscal situation require them.
|
Date |
Time |
Action |
|
6/10/2026 |
5:00 p.m. |
Board approved the Draft Contingency Service Plan |
|
8/7/2026 |
4:00 p.m. |
8/12 Board Meeting Packet post & Public Comment Period Opens |
|
8/12/2026 |
5:00 p.m. |
Board Meeting: Set Public Hearing Dates on Draft Plan |
|
10/14/2026 |
2:00 p.m. |
Public Hearing |
|
10/14/2026 |
6:00 p.m. |
Public Hearing and Close Public Comment Period |
|
12/9/26 (if necessary) |
5:00 p.m. |
Board Meeting: Contingency Service Plan Decision |
|
6/13/27 (if necessary) |
TBD |
Implement Contingency Service Plan |
Line 95 Routing Change
Staff proposes to address operational concerns raised by bus operators on Line 95. The existing conditions along Costa Drive make it difficult to navigate the left turn from Eddy Street onto Costa Drive. At times, buses are unable to complete the turn and require assistance from Road Supervision.
Staff conducted a test trip in April 2026 to confirm the issues and assessed various alternatives. The new proposed route is to operate via Kelly Street, continue right into Henry Lane, right Shawn Way, right Glen Ellen Drive, right Naomi Drive then left Eddy Street to terminal.
New street segments include:
• Kelly Street between Eddy Street and Henry Lane
• Henry Lane between Kelly Street and Shawn Way
• Shawn Way between Henry Lane and Sheila Street
Per Board Policies 110 and 545, AC Transit is required to conduct a Public Hearing for a new transit route such as the proposed changes on Line 95. Based on the outcome of the Public Hearing, staff will bring the item to the Board on the same timeline as the Contingency Service Plan and propose implementing the change in June of 2027. The changes related to Line 95 will be brought to the board regardless of the outcome of the regional ballot measure.
A map of the existing and proposed routings is detailed in Attachment 4.
ADVANTAGES/DISADVANTAGES:
Holding Public Hearings on possible service reductions would help ensure continuity of bus service beyond FY 26-27 should the District not secure increased funding by the end of calendar year 2026. Holding Public Hearings also allows for formal community input on the Draft Contingency Service Plan for the Board to consider prior to adopting a final plan, if needed, in December 2026.
Staff have identified no disadvantages with holding the Public Hearings and receiving community feedback on the Contingency Service Plan process.
ALTERNATIVES ANALYSIS:
The Board could choose not to hold the Public Hearings, which would push implementation of a final plan past the June 2027 scheduling window (i.e., operator sign-up). This alternative is not recommended for the following reasons:
First, should the District not secure sustained funding, it would need to be prepared to reduce expenses at the beginning of FY 2027-28. With significant lead time needed to develop and implement service changes on this scale, public hearings must take place now to keep the Board on track to consider approval of a final plan by the end of the year.
For the Board to move forward with any Major Service Change per AC Transit Board Policy 544, the Board must hold public hearings in line with Board Policy 110.
Final plan approval by the end of the year would give staff enough time for to develop new schedules and downstream materials in time for June 2027 implementation.
Second, consistent with prior Board direction, staff have already conducted broad outreach across the service area to announce the upcoming Public Hearings and the Open Houses that will precede them. Through presentations at civic meetings, formal public notices, customer newsletters and alerts, social media, and additional channels, this outreach has actively encouraged community participation and highlighted opportunities for the public to provide comments.
PRIOR RELEVANT BOARD ACTION/POLICIES:
SR 26-090 Alternate Service Plan Framework
SR 26-090a Proposed Contingency Service Plan for Consideration at a Future Public Hearing Approval
SR 26-090b Set Public Hearing: Draft Contingency Service Plan and Line 95-Service on New Streets
ATTACHMENTS:
1. Public Hearing Notice
2. Draft Contingency Service Plan Matrix
3. Draft Title VI Analysis
4. Maps of Existing and Proposed Line 95 Routing Near East-End Terminal
5. Staff Presentation
6. Community Engagement Report
7. Outreach and Communications Materials
8. 中文工作人员报告及相关文件 (Chinese-language Staff Report and Related Documents)
9. Informe del personal y documentos relacionados en español (Spanish-language Staff Report and Related Documents)
Prepared by:
David Berman, Principal Transportation Planner
In Collaboration with:
Sean DiestLorgion, Service Planning Manager
Howard Der, Senior Transportation Planner
Owen Goetze, Senior Transportation Planner
Carissa Lee, Senior Transportation Planner
Crystal Wang, Senior Transportation Planner
Owen Christofferson, Transportation Planner
Approved/Reviewed by:
Robert del Rosario, Director of Service Development & Planning
Steven Jones, Director of Legislative Affairs and Community Relations
Nichele Laynes, Director of Marketing, Communications & Customer Service
Arlee Young, Director of Transportation
Aaron Vogel, Chief Operating Officer
Claudia Burgos, Chief External Affairs Officer
Ramakrishna Pochiraju, Chief Planning & Development Officer
Pamela J. Caronongan, Board Administrative Officer/District Secretary
Paul Kincaid, Assistant General Manager/Chief Executive Officer/Interim Chief Financial Officer
Aimee L. Steele, General Counsel/Chief Legal Officer