Title
Recommendation to Authorize the City Manager to Execute a First Amendment to the Service Provider Agreement with the Alameda-Contra Costa Transit District (AC Transit) to Continue the AC Transit Free Bus Pass Program for Seniors and People with Disabilities for an Additional Two-Year Term, Not-to-Exceed $690,000, for a Total Five-Year Compensation Amount Not-To-Exceed $1,363,000.
In accordance with the California Environmental Quality Act (CEQA), this action is categorically exempt from further environmental review pursuant to CEQA Guidelines Section 15061(b)(3), the common-sense exemption, because the activity does not have the potential for causing a significant effect on the environment. (Planning, Building, and Transportation 21862741)
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To: Honorable Mayor and Members of the City Council
From: Jennifer Ott, City Manager
EXECUTIVE SUMMARY
The City of Alameda Free AC Transit Bus Pass program for seniors and people with disabilities (Free Bus Pass Program) began as a three-year pilot in 2022. The City of Alameda (City) entered into a three-year agreement with AC Transit on May 2, 2022 (Exhibit 1) to provide bus passes, bus service, and administrative support for the program. This original agreement expires on June 30, 2025, and a First Amendment to the Agreement (Exhibit 2) is needed to continue the Free Bus Pass Program.
Staff recommends that the City Council authorize the City Manager to execute the First Amendment to the Service Provider Agreement with AC Transit to extend the Free Bus Pass Program for Seniors and People with Disabilities for an additional two-year term. The amended agreement would increase the total compensation to an amount not to exceed $690,000 for the extension, bringing the five-year total to $1,363,000. The AC Transit Board of Directors will consider approving this Amendment at its July 9, 2025, meeting.
The amendment includes a higher annual payment to AC Transit to reflect the program’s growing popularity and to accommodate recent fare increases. This increase will be supported by an additional $70,000 per year in General Fund contributions, proposed in the Fiscal Year (FY) 2025-27 biennial budget, along with continued prioritization of Alameda County Measure BB Paratransit funds.
With these additional resources and a formal income verification process during annual enrollment renewals, staff anticipates the program will be able to clear its current waitlist and continue to provide low-income seniors and persons with disabilities with over 200,000 bus rides a year.
BACKGROUND
Each year, Alameda County Measure BB provides the City with funding to support transportation programs that serve seniors and people with disabilities. These funds enable the City to create paratransit and mobility programs tailored to community needs, supplementing East Bay Paratransit, which is a regional service jointly operated by BART and AC Transit for individuals who cannot use regular public transit due to a disability. The City provides several support programs utilizing this funding.
The City’s Free AC Transit Bus Pass Program allows low-income City residents, ages 65+ or 18-64 with a certified disability, to ride all AC Transit routes at all times of day at no cost to them. It is administered by the City’s Paratransit Coordinator, working from the Mastick Senior Center. The program launched in 2022 as a pilot replacing the Alameda Free Loop Shuttle in response to the Shuttle’s high costs, low ridership, and low customer satisfaction. At that time, staff determined that most Loop Shuttle riders also rode AC Transit buses. The pilot period three-year contract term with AC Transit ends on June 30, 2025.
DISCUSSION
The pilot Free Bus Pass Program has been a major success, with enrollment and ridership growing each year. With over 960 people currently enrolled, participants took over 205,000 rides in 2024. They are now riding the bus over 18,000 times per month, reaching over 19,000 in April 2025. The City pays the Senior Clipper Card rate (currently $1.12) per ride. This is compared to 900 boardings per month pre-COVID on the former Loop Shuttle, with a $13 cost per ride.
In the 2024 transportation survey for older adults and people with disabilities, participants reported that the free bus pass helps them achieve higher independence, financial stability, and improved mental health. Participants reported using their passes to travel between Park and Webster Streets, to Oakland Chinatown, to grocery stores and the food bank, to doctors’ appointments both in Alameda and Oakland, and to recreation and fitness opportunities.
In spring 2025, the Commission on Persons with Disabilities and the Transportation Commission both unanimously endorsed continuation of the Free Bus Pass Program. Commissioners encouraged staff to pursue options to increase program capacity and conduct outreach to increase participation among demographic groups that are using the program in lower numbers.
The City pays AC Transit the standard senior Clipper fare per ride in a “pay-as-you-go” model. With the Free Bus Pass program’s success and popularity, as of spring 2025 it was serving the maximum number of rides the Measure BB budget allows with current fares, and staff developed a waitlist. In addition, the AC Transit Board of Directors approved fare increases that will start in July 2025.
In response, staff worked with AC Transit to explore options for creating a permanent Free Bus Pass Program AC Transit’s bus pass programs include the pay-as-you-go model and the EasyPass program, which offers institutions (e.g., companies and residential communities) with flat-rate annual bus passes. To qualify, the institutions must purchase passes for their entire group regardless of whether everyone uses the pass. Because the City’s current program allows only interested individuals to enroll, AC Transit determined that the City’s program is not a fit for the structure of the EasyPass program. City staff will continue to evaluate the feasibility of redesigning the Free Bus Pass Program to qualify for the EasyPass program. In the meantime, the pay-as-you-go model remains the best option.
To manage rising costs and eliminate the waitlist, staff will implement the following strategies to support the program’s ongoing success:
• Prioritize Measure BB Paratransit funding for the Free Bus Pass program.
• Include $70,000 in General Fund for approved FY 2025-27 to sustain the program and clear the waitlist.
• Strengthen income verification requirements for the annual enrollment renewal in summer 2025 to ensure that participation is limited to the low-income seniors and people with disabilities who need it most.
Staff recommends amending the existing three-year Agreement with AC Transit for an additional two-year term. Exhibit 2 includes the First Amendment to the Agreement, which details staffing and bus pass unit costs. The amended not-to-exceed five-year total is $1,363,000.
ALTERNATIVES
• Authorize the City Manager to execute the First Amendment with AC Transit to continue the Free Bus Pass Program for an additional two-year term.
• Direct staff to negotiate different terms and authorize the City Manager to execute an agreement that includes such terms, if acceptable to AC Transit. This could cause a disruption in service of the Free Bus Pass Program and is not recommended.
• Do not authorize a First Amendment to the Agreement with AC Transit for the Free Bus Pass Program. This would result in a disruption of the program including for current pass holders and is not recommended
FINANCIAL IMPACT
The AC Transit Free Bus Pass Program for the proposed amended Agreement is budgeted in the Paratransit Program (21862741) operating budget. The total annual cost presented for the First Amendment includes $275,000 annually from Alameda CTC Measure BB Paratransit and a $70,000 annual General Fund allocation in the 2025-2027 biennial budget. The resulting two-year Agreement amendment has a not-to-exceed amount of $690,000 for a five-year not-to-exceed amount of $1,363,000.
|
Agreement |
Approval Date |
Authorized Amount |
Expended to 6/3/2025 |
|
Original Agreement |
4/5/2022 |
$673,000 |
$464,430 |
With additional invoices expected through June 30, 2025, the City anticipates total expenditures on the original Agreement to be approximately $526,000. The average amount spent per year in the original Agreement is lower than the Agreement amendment because the program started small and grew steadily throughout its first three years, in addition to a lower per-ride fare.
MUNICIPAL CODE/POLICY DOCUMENT CROSS REFERENCE
The program helps fulfill the City Council Strategic Plan goal to, “Invest in Transportation, Infrastructure, Economic Opportunities, and Historic Resources.” The Free AC Transit Bus Pass pilot program supports these General Plan Objectives:
• ME-3.c: “Equal Access. Continue to improve the transportation network to ensure that residents with limited income have affordable and convenient access to transportation choices, such as AC Transit bus service and paratransit.”
• ME-22.d: “Transit Use. Reduce automobile greenhouse gas emissions by increasing transit use.”
This action is subject to the Levine Act.
ENVIRONMENTAL REVIEW
In accordance with CEQA, this action is categorically exempt from further environmental review pursuant to CEQA Guidelines Section 15061(b)(3), the common-sense exemption, because the activity does not have the potential for causing a significant effect on the environment.
CLIMATE IMPACT
The Free AC Transit Bus Pass Pilot Program will continue to have a positive climate impact by encouraging transit ridership and reducing vehicle miles traveled.
RECOMMENDATION
Authorize the City Manager to execute the First Amendment to the Service Provider Agreement with AC Transit to continue the AC Transit Free Bus Pass Program for seniors and people with disabilities for an additional two-year term, not-to-exceed $690,000, for a total five-year compensation not-to-exceed amount of $1,363,000.
Respectfully submitted,
Allen Tai, Planning, Building & Transportation Director
By,
Lisa Foster, Transportation Planning Manager
Susie Hufstader, Senior Transportation Coordinator
Financial Impact section reviewed,
Ross McCarthy, Finance Director
Exhibits
1. Original Agreement
2. First Amendment
cc: Justin Long, Recreation & Parks Director