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Report ID: 22-444   
Type: Consent
Meeting Body: Board of Directors - Regular Meeting
Meeting Date: 8/10/2022 Final action: 8/10/2022
Recommended Action: Consider authorizing the General Manager to negotiate and execute the 2022 Clipper Amended and Restated Memorandum of Understanding with the Metropolitan Transportation Commission for the Next Generation Clipper C2 program.
Attachments: 1. STAFF REPORT, 2. Att.1. MTC Clipper_Amended_and_Restated_MOU, 3. Master Minute Order
TO: AC Transit Board of Directors
FROM: Michael A. Hursh, General Manager
SUBJECT: Clipper 2 Amended and Restated MOU with MTC

ACTION ITEM
AGENDA PLANNING REQUEST: ?

RECOMMENDED ACTION(S):

Title
Consider authorizing the General Manager to negotiate and execute the 2022 Clipper Amended and Restated Memorandum of Understanding with the Metropolitan Transportation Commission for the Next Generation Clipper C2 program.
Body

STRATEGIC IMPORTANCE:

Goal - Convenient and Reliable Service
Initiative - Infrastructure Modernization

The Next Generation Clipper program will modernize the Clipper payment system for riders to manage their Clipper accounts. This includes improving the mobile and contactless payment options for riders to add value to Clipper cards and replacement of Clipper Cards. This modernization includes operational improvements and upgrades to Clipper equipment on the District's bus rapid transit (BRT) platforms and all bus coaches.

BUDGETARY/FISCAL IMPACT:

Costs associated with fixed monthly operations and maintenance (O/M) will be split equally (50%/50%) between MTC and the Operators. The operators' share shall then be further allocated to each Operator based on Clipper ridership. Although overall C2 operating costs are expected to increase as the account-based system offers new functionalities, the District's share is expected to remain consistent with the current levels due to the increased cost share by MTC. Other "Line Item" costs such as credit/debit card fees will be allocated to each operator in accordance with the cost-sharing formula based on the fee generating categories. The projected FY 2022-23 total Clipper cost is $1.5 million.

The RTC Program projected cost for FY 2022-23 is $115,000, same as last fiscal year.

BACKGROUND/RATIONALE:

Each transit property participating in the regional Clipper program signed a memorandum of understanding (MOU) in 2016 with the Metropolitan Transportation Commission (MTC) for terms of ...

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