TO: AC Transit Board of Directors
FROM: Salvador Llamas, General Manager/Chief Executive Officer
SUBJECT: Bay Area Financial Efficiency Review Phase 1 Report
ACTION ITEM
AGENDA PLANNING REQUEST: ?
RECOMMENDED ACTION(S):
Title
Consider receiving the Bay Area Financial Efficiency Review Phase 1 Report and adopting the early action strategies as recommended by staff.
Staff Contact:
Chris Andrichak, Chief Financial Officer
Claudia Burgos, Executive Director of External Affairs & Customer Experience
Body
STRATEGIC IMPORTANCE:
Goal - Financial Stability and Resiliency
Initiative - Financial Efficiency and Revenue Maximization
Showing that the District operates as efficiently as possible is key to maintaining and increasing public, rider, and stakeholder support.
BUDGETARY/FISCAL IMPACT:
The near-term actions identified in the report are premised on AC Transit being able to implement them with existing resources. Where the strategies have a cost, such as with attendance incentives or EasyPass expansion, they are assumed to reduce costs or increase revenue and pay for themselves. Some of the strategies are to study or identify future actions that could have a cost impact, although these should also pay for themselves. For the strategies that staff recommends adopting, any necessary resources are included in the proposed FY 26-27 budget, which assumes passage of a revenue measure.
BACKGROUND/RATIONALE:
Senate Bill 63 (Weiner/Arreguin), also known as the "Connect Bay Area Act", established a regional funding framework to help address the Bay Area's ongoing transit operating funding challenges. The bill authorizes a sales tax-based ballot measure in five counties (Alameda, Contra Costa, San Francisco, San Mateo, and Santa Clara) to be placed on the ballot for the November 3, 2026 statewide general election that would fund transit operations. SB63 requires that the Metropolitan Transportation Commission (MTC) contract a consultant to conduct a two-p...
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