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Subcommittee forwards CLIPPER MOU after SFMTA outlines cost and grant risks
Summary
The subcommittee recommended approval of a memorandum of understanding to join the regional CLIPPER fare media governance model after SFMTA finance staff outlined a net estimated cost of $26.6 million for FY2010–19 and warned that nonparticipation could jeopardize federal and state grant funding disbursed by the MTC.
Item 7 asked the subcommittee to approve a memorandum of understanding (MOU) between the Metropolitan Transportation Commission (MTC) and the participating Bay Area transit agencies to move CLIPPER (the TransLink successor) from implementation into ongoing operations and governance.
Diana Hammonds of SFMTA finance explained that the MOU replaces the prior interagency partnership agreement, carries forward cost and revenue sharing formulas and reflects the transition to governance and operations. The budget analyst reported SFMTA’s share of operating and maintenance costs at about $43.8 million for fiscal years through 2018–19 and estimated net costs of $26.6 million after projected savings (roughly $17 million) from fraud reduction and other measures.
The analyst also noted an MTC resolution that would impose sanctions — including restricting or withholding federal and state grant funds administered by MTC — if participating agencies did not enter into the proposed MOU. The subcommittee voted to forward the MOU to the full Board with recommendation to approve.
SFMTA staff said the program costs are budgeted in FY2011–12 and that participation is intended to standardize fare media and share costs across regional operators.
