TO: AC Transit Board of Directors
FROM: Salvador Llamas, General Manager/Chief Executive Officer
SUBJECT: Update on the Implementation of Next Generation Clipper
BRIEFING ITEM
AGENDA PLANNING REQUEST: ?
RECOMMENDED ACTION(S):
Title
Considering receiving a report on the Next Generation Clipper implementation
Staff Contact:
Ahsan Baig, Chief Information Officer
Claudia Burgos, Executive Director of External Affairs & Customer Experience
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STRATEGIC IMPORTANCE:
Goal - Convenient and Reliable Service
Initiative - Infrastructure Modernization
The Next Generation Clipper(r) (NGC) program has modernized the Clipper payment system to allow transit riders to manage their Clipper accounts on-line, get immediate access to added value on their Clipper accounts, and enable contactless payments and mobile payment options.
BUDGETARY/FISCAL IMPACT:
The fiscal impact on District budget is uncertain due to ongoing delays in the launch of NGC, and requirements to keep the legacy Clipper system operational. Metropolitan Transportation Commission (MTC) staff provided a draft Clipper Operating Budget to the Clipper Executive Board (CEB) at their meeting on March 30, 2026 to inform transit agencies of a possible significant increase in operational costs for fiscal year 2026-27. The draft cost increase to all transit agencies was 82% over the prior estimate. For AC Transit this would mean an increase from $1.6 million to $3.0 million.
Clipper staff have formed a cost allocation working group in collaboration with transit agencies to review the formulas for distribution of charges to agencies. The cost to the agency can vary both on the overall cost of the specific function and how that cost is distributed amongst agencies. For example, credit card charges are distributed based on formulas that consider transaction counts and dollar amounts. Staff is incorporating the increased cost into the coming year budget and will adjust as necessary based on the contin...
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