TO: AC Transit Board of Directors
FROM: Salvador Llamas, General Manager/Chief Executive Officer
SUBJECT: Token Transit Fare-Media Discontinuation – Board Policy Waivers
ACTION ITEM
AGENDA PLANNING REQUEST: ?
RECOMMENDED ACTION(S):
Title
Consider adopting Resolution No. 26-032 approving the discontinuation of Token Transit as a fare media, waiving the public-hearing requirement under Board Policy 110 and waiving the fare equity analysis requirement under Board Policy 518.
Staff Contact:
Paul Kincaid, Interim Chief Financial Officer
Body
STRATEGIC IMPORTANCE:
Goal - Strong Public and Policymaker Support
Initiative - Service Quality
Discontinuing Token Transit will reduce duplication among fare-payment options and transition riders to Clipper 2 and other existing payment methods. Staff will provide targeted information and assistance to Token Transit customers during the transition.
BUDGETARY/FISCAL IMPACT:
The discontinued use of Token Transit will have no direct impact on the budget. It will likely increase fares collected by the District, due to eliminating concerns with fraudulent Token Transit usage. However, that amount cannot be reliably measured or predicted.
The Token Transit (Contract 2019-1483) contract expires on October 31, 2026. Assuming the Board approves staff’s recommendation, the agreement will not be renewed. Retirement of the platform is expected to increase efficiency of fare collection by the District. The District will also eliminate duplicate vendor, support, training, and fare-administration costs after contract closeout. The $20,000 paid to Token Transit in commissions and integrations in FY 2025-26 would be eliminated once the contract expires. Finance and Procurement will reconcile final contractual obligations, transaction activity, and any customer refund or redemption costs.
Waiving the public-hearing requirement would avoid direct costs normally associated with a hearing, including legal notice publicat...
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