CITY COUNCIL
MEETING
AUGUST 18, 2026
PRESENTATIONS
Item #1
RPT 26-058
AC Transit
Budget & Service
Update
Keeping the East Bay
Moving
City of Hayward
August 18, 2026
2 AC Transit At a Glance
• California’s largest
public bus-only system
• 2023 Outstanding Public
Transportation System
Award
Serving the East Bay
since 1960
$606.3M
operating budget
364
miles
6 facilities in 4 cities:
• Oakland (3)
• Emeryville
• Hayward
• Richmond 2,266 Employees
13 cities and 8 unincorporated
communities in Alameda
and Contra Costa counties
Serving 3+
million riders
monthly
Connecting to
16 transit systems
Service area:
65% of riders:
low-income
75% of riders:
people of color
3 Current Ridership
141,000 Weekday
162,559 Saturday & Sunday
9,538 Daily Weekday Transbay
30,000 Student Trips Every
School Day
Providing 40 Million
Annual Rides
(April 2026 data)
4 Driving the East Bay Economy
Source: The American Public Transportation Association (APTA) A Workforce-First Employer
Investments in
service, maintenance,
and capital projects
support over
5,100 Jobs
$604
million
in local wages
fuel the region’s
economy
An East Bay Economic
Engine
$1 billion
Local Business Sales
5 National Leader in Clean Transit
25 Years of Zero Emission Leadership
Investing in
communities that
depend on transit
58 zero emission
buses (ZEBs)
(28 battery electric +
30 hydrogen fuel cell)
The nation's first Zero
Emission Bus University
(ZEBU): the future of
workforce development
Awarded $40M in
federal grants to
help make ZEBU – in
Hayward – a reality
ZEBU Workforce Partnership
A first-of-its-kind transit-college
collaboration with Chabot
College & union (ATU Local 192)
6 Investing In Our Communities
Programs that put riders first
EasyPass
• Unlimited rides, one pass
• 4.7M Annual Trips
Deeply discounted annual passes for
employers, colleges, and residential
communities.
Clipper START
Half-price fares for riders who
need it most
50% off every trip for income-eligible
adults across Bay Area transit.
Regional Network Management
Coordinating transit priority across
the Bay Area
Working with regional partners to
make buses faster and more reliable
across major corridors.
Realign
Right-Sizing Our Bus System
Redesigned 104 lines to match today’s
ridership, improve connectivity, and
boost efficiency.
Onboard camera
technology encourages
safer driving around buses.
Bus Only Lanes & Bus
Stop Enforcement
Safety Tech
AC Transit Riders Depend on Us More Than Ever
7 • Higher-income commuters are riding transit less
often.
• Lower-income riders still rely heavily on transit
for daily needs.
• Over 60% of AC Transit riders earn under $50,000.
• 70% of Bay Area transit riders earn under
$100,000.
• 65% of Bay Area transit riders had no household
vehicle available for their trip.
East Bay riders with the fewest
transportation options would bear the
brunt of possible service cuts.
Sources: S.F. Chronicle, June 29, 2026; MTC 2023–2024
Transit Passenger Snapshot Survey.
8 Accountability and Oversight
Making every taxpayer dollar count
Strengthening Fare Compliance
Every fare supports service
Following the first fare increase in six years, a
second arrives July 1, 2026, paired with a
campaign on the importance of paying the fare
and reducing evasion through fare compliance.
2026 State Audit Report
Validated by California’s State Auditor
AC Transit and five other East Bay transit agencies
are already working together well across the
region. The real problem is mounting fiscal deficits
that threaten service.
SB 63 Financial Efficiency Review
Independent review confirms
we’re controlling costs
Independent review confirms average annual
savings of $33 million since FY20.
Disciplined Financial Management.
Strong Credit Rating.
S&P Global Ratings: AA+
One of the highest credit ratings,
demonstrating a very strong ability to meet
financial obligations.
Structural Deficit & Mitigations
9 Financial Outlook
What's Behind Our
Budget Deficit?
• Emergency relief funding that sustained
service through the pandemic is now gone
• Operating costs — wages and benefits,
fuel, parts, and bus production — are
rising faster than revenues
• Flat regional sales tax revenues
+28%
Fuel
+14%
Bus parts
+35%
Cost of buses
Bus cost increase: 2023–2025
Structural Deficit & Mitigations
10 Financial Outlook
Smart Cost-Cutting
Every department is tightening spending
$9M+
In savings delivered in
FY 26
• Hiring limited to critical roles that directly support service • Temporary employees scaled back — saving up to
$2M each year
• Brought outside professional services in house
• Partnered with other agencies to buy goods and services for less
• Temporary pension payment plan reduction approved for FY 2026–27
11 If New Funding Doesn't Materialize
$200M, Projected Four-Year Deficit
1 %
Bus Service
Potential loss of 300
jobs and cuts to
1,500 paratransit
trips.
12 Potential New Funding & Use of Bridge Loan
• SB 63 authorizes a 5-county sales tax measure:
0.5% in Alameda, Contra Costa, San Mateo and
Santa Clara and 1% in San Francisco
• If the measure is approved by voters, AC Transit
receives $52M annually
• Would provide funding for other transit
operators and local projects prioritized by each
county
• Would preserve current bus service levels
• $590 million loan offers
short-term relief
• AC Transit will receive
$55 million
• The loan covers most of our $60
million deficit in FY26-27
allowing us to maintain current
service levels into the coming
fiscal year
Regional Transit Bridge LoanNovember 2026 Ballot Measure 13 Why Plan for
Service Reductions?
• Protect the investments we’ve made
• Continue to use tax dollars wisely
• Deliver the best service we can in the
worst-case scenario
• Protect as much bus service as possible
Guiding Principles
• Maintain the Realign network
• Minimize complete service eliminations
• Focus on span and frequency reductions
• Restructure high-cost services
• Service impacts proportional across
bus network
Protect As Much As Possible
Plan for the worst, hope for the best
14 Proposed Contingency Service Plan
Primary Route Network
The “backbone” of the network
is protected
Lines 1T, 6, 9, 18, 40, 51A, 51B, 52, 57,
shared 72/72M/72L:
• Preserved at 15 minutes or better on weekdays
Most other “backbone” lines:
• Daily service with hours no less than 6:00 a.m.–10:00 p.m. • Every 30 minutes in line with service standards
• 93% of bus lines remain unchanged
What This Means For City of Hayward
(Central Alameda County)
Proposed Contingency Service Plan
Line 9: Frequency reduced to 30 mins before 7:00am
and after 7:00pm. Hours of operation reduced to
6:00am – 10:00pm throughout the week.
Line 97: Frequency reduced to 30 mins all day and
service truncated at Union Landing (i.e., service
eliminated between Union Landing and Union City
BART).
Line 60: Reduced hours of operation to 6:00 AM –
10:00 PM. Weekend frequency reductions to 60
mins. 45-minute weekday frequencies maintained.
Additional trips to CSUEB maintained.
Other lines (28, 34, 35, 41, 56, 86, 93, 95):
Daily 60-minute service and reduced hours of
operation on most lines.
Line 801 (Owl service): No change.
16 The Road Ahead
Date Service Reduction Step
Aug 12, 2026 AC Transit Board Sets Public Hearing
Oct 14, 2026 Public Hearing and Open House
Nov 3, 2026 General Election
Nov 18, 2026
(if needed)
AC Transit Regular Board Meeting
Dec 9, 2026
(if needed) AC Transit Board Approval
Jun 13, 2027
(if needed) Implement Service Reductions
17 Share Your Feedback!
Find us on Social:
actransit.org
Scan the QR Code to learn more about our Proposed Contingency Plan Email: [email protected] Visit: www.actransit.org/contingency-plan
Item #13
LB 26-014
Cal Cities 2026
Annual
Conference
Hayward Police Department Year-End Report
1 2026 Cal Cities General Assembly
September 25, 2026
Voting delegates consider Cal Cities policy resolutions. • Council designates a delegate and up to two alternates.
Planning to Attend Conference:
• Mayor Salinas
• Councilmember Bonilla Jr.
• Councilmember Roche
• Councilmember Syrop
Select representatives from below to be designated as a delegate and alternates:
Hayward Police Department Year-End Report
2 Proposed Cal Cities Resolution
Purpose of the Resolution
• Responds to state laws overriding
locally adopted plans, zoning
standards, and review procedures.
• Creates a working group to develop
strategies for strengthening local
housing and land use authority.
• Potential strategies could include a
constitutional amendment ballot
measure or legislation.
Rationale for Support
• Cities must coordinate housing with
infrastructure and public services.
• A working group would consider
how to balance statewide housing
goals with local authority and
conditions.
• Supporting the process does not
commit Hayward to a particular
solution.
Hayward Police Department Year-End Report
3 Staff Recommendation
1. Designate General
Assembly Representatives
Select:
• One voting Delegate
• Up to two Alternates
2. Support the Proposed
Cal Cities Resolution
• Support formation of the
Working Group.
• Direct the voting delegate to
vote in support at the
General Assembly
Adopt Resolutions To:
Hayward Police Department Year-End Report
4 Questions