TO: AC Transit Board of Directors
FROM: Salvador Llamas, General Manager/Chief Executive Officer
SUBJECT: Next Generation Clipper (Clipper 2) Update
BRIEFING ITEM
AGENDA PLANNING REQUEST: ?
RECOMMENDED ACTION(S):
C)Title
Consider receiving an update on the Next Generation Clipper implementation.
Staff Contact:
Ahsan Baig, Chief Information Officer
Claudia Burgos, Interim Executive Director External Affairs & Community Relations
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STRATEGIC IMPORTANCE:
Goal - Convenient and Reliable Service
Initiative - Infrastructure Modernization
The Next Generation Clipper program in the Bay Area will modernize the Clipper payment system for transit riders by providing options for managing their Clipper accounts online, enable phone-based contactless payment and add immediate value to a Clipper account, as well as transition from a monthly fare payment structure to a rolling account fare payment structure.
BUDGETARY/FISCAL IMPACT:
Metropolitan Transportation Commission (MTC) staff presented the Clipper Operating Budget at the Clipper Executive Board Meeting on April 28, 2025, which included $7.3 Million in Float Account Interest accrued from MTC's investment of Float Account funds to fund transit operator's portion of the FY25-26 C1 Operating costs. This will help reduce the District's FY 25-26 Clipper operating cost to $1.2 Million from $1.8 Million, as included in the District Operating budget. There are no budgetary or fiscal impacts associated with receiving this report.
BACKGROUND/RATIONALE:
Staff provides updates to the Board of Directors on the District's activities and accomplishments on the Next Generation Clipper program (NGC, formerly known as C2) two times per year. The technology issues that resulted in NGC program delays over the past two years have been resolved. While there are several risks that still have the potential to delay the project, AC Transit along with other transit properties, will begin work on the tasks necessary ...
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