Committee backs sending Clipper memorandum of understanding to full board as next‑gen rollout nears

The Government Audit and Oversight Committee on Nov. 17 voted to forward to the full Board a resolution authorizing the Municipal Transportation Agency director to execute an amended and restated memorandum of understanding for the next‑generation Clipper fare system with the Metropolitan Transportation Commission and regional operators.

Diana Hammonds, SF MTA revenue manager, told the committee the amended MOU shifts the program away from variable transaction fees toward a fixed monthly cost for operation under the new contract. She said the Metropolitan Transportation Commission will pay roughly 35 percent of ongoing operating costs under the amended allocation; MTA will also cover capital costs. Nick Menard of the Budget and Legislative Analyst’s office presented a fiscal summary noting that MTA’s costs were $8.4 million pre‑COVID, fell to about $3 million during COVID, and are projected to rise to roughly $7.1 million this year and $9.7 million the following year as the program transitions to fixed costs and MTA temporarily pays for both systems during rollout.

Supervisors questioned whether key products — including monthly Muni passes and fare capping/pay‑as‑you‑go options — will be supported. Hammonds said monthly passes "for more than 10 years have only been available on Clipper" and that the region’s product plan will bring more offerings online; she also said an MTC resolution passed roughly a decade ago discourages transit agencies from implementing competing fare‑collection systems to preserve regional integration.

Committee members asked about timing and approvals across the 24 participating transit operators; Hammonds said most agencies have approved or are in the approval process and the MOU requires all participating operators to sign. The committee voted to forward the resolution to the full board with a positive recommendation.