HomeMy WebLinkAboutR-11564 approving agreements for San Luis Obispo (SLO) Transit's Open Loop Payment System Project.pdR 11564
RESOLUTION NO. 11564 (2025 SERIES)
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS
OBISPO, CALIFORNIA, APPROVING AGREEMENTS FOR SAN LUIS
OBISPO (SLO) TRANSIT’S OPEN-LOOP PAYMENT SYSTEM PROJECT
WHEREAS, in 2019, the California Integrated Travel Project (Cal-ITP) was
launched by the California State Transportation Agency (CalSTA) and the California
Department of Transportation (Caltrans); and
WHEREAS, Cal-ITP is a statewide initiative designed to make public
transportation more accessible, efficient, and user-friendly by integrating payment
systems, data standards, and real-time travel information across agencies; and
WHEREAS, Cal-ITP offers multiple statewide contracts for the hardware and
software needed to implement an open-loop payment system at pre-negotiated rates; and
WHEREAS, on December 6, 2023, San Luis Obispo Council of Government’s
(SLOCOG) board approved submittal of the Senate Bill (SB) 125 allocation package to
the CalSTA which included funding for the implementation of a regionwide Cal-ITP open-
loop payment system project; and
WHEREAS, under San Luis Obispo Municipal Code §3.24.060, bid procedures
may be waived and procurement obtained from a single vendor when the purchase will
be made cooperatively with one or more other units of government; and
WHEREAS, on January 14, 2025, the City Council adopted Resolution No. 11538
(2025 Series) authorizing the execution of a cooperative agreement with SLOCOG for SB
125 funds and the appropriation of funds to associated capital projects; and
WHEREAS, the SB 125 cooperative agreement with SLOCOG must be amended
to include the open-loop payment system project for the City to seek reimbursement from
SLOCOG for project related costs incurred by the City; and
WHEREAS, in August 2024, SLOCOG held a kick-off meeting with a working
group consisting of representatives from the City, RTA, Morro Bay Transit, and Cal -ITP
to develop and release a scope of work, review vendor proposals, and discuss
integrations with existing systems; and
WHEREAS, based on the information provided in the vendors’ proposals,
responses to follow-up questions, and discussions with peer agencies; the working group
selected Kuba, Inc. as the preferred vendor for the payment acceptance devices,
Littlepay, Inc. as the preferred vendor for the transit processing software, and Elavon, Inc.
as the preferred vendor for merchant processing services; and
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WHEREAS, the City contracts with Token Transit, Inc. for digital pass and fare
services via mobile application whereby SLO Transit riders can pay for digital pass and
fare and then verify them on the bus; and
WHEREAS, the City wishes to integrate digital pass and fare verification between
Token Transit, Inc. and the payment acceptance devices offered by Kuba, Inc. to allow
for continued use of digital passes and fares by SLO Transit riders; and
WHEREAS, at a regularly scheduled meeting on May 20, 2025, the City Council
considered recommendations by staff to approve execution of agreements necessary to
implement the open-loop payment system project.
NOW, THEREFORE, BE IT RESOLVED that the Council of the City of San Luis
Obispo does hereby approve sole source agreements for the implementation of an open -
loop payment system project as follows:
SECTION 1. Environmental Review. The California Environmental Quality Act
(CEQA) does not apply to the recommended actions in this report, because the action
does not constitute a “Project” under CEQA Guidelines Section 15378.
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SECTION 2. Approval. The City Council of the City of San Luis Obispo does
hereby approve the following:
1. Execution of an agreement with Kuba, Inc. for procurement, installation, and
warranty of payment acceptance devices; and
2. Execution of an agreement with Kuba, Inc. for ongoing support services for
payment acceptance devices; and
3. Execution of an agreement with Littlepay, Inc. for transit processor services;
and
4. Execution of an agreement with Token Transit, Inc. for integration and on-
going support of digital pass and fare purchases; and
5. Authorize the Finance Director to negotiate and execute an agreement with
Elavon, Inc. for merchant processing services as part of the system
configuration process.
Upon motion of Council Member Francis, seconded by Council Member Marx, and
on the following roll call vote:
AYES: Council Member Boswell, Francis, Marx, Vice Mayor Shoresman,
and Mayor Stewart
NOES: None
ABSENT: None
The foregoing resolution was adopted this 20th day of May 2025.
___________________________
Mayor Erica A. Stewart
ATTEST:
______________________
Teresa Purrington
City Clerk
APPROVED AS TO FORM:
______________________
J. Christine Dietrick
City Attorney
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the
City of San Luis Obispo, California, on ______________________.
___________________________
Teresa Purrington
City Clerk
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6/6/2025 | 10:06 AM PDT