The board of directors for Eugene, Oregon’s Lane Transit District (LTD) voted to approve the agency to enter into contract negotiations with Delerrok Inc., a California-based electronic fare system vendor.

The new electronic fare system will allow riders boarding an LTD bus to wave a prepaid “smart” pass or a smartphone app in front of an electronic validation box to pay their fare. LTD will continue to accept cash for fares as well.

“LTD expects electronic fares to speed up boarding time, ensure fare accountability, and provide anonymous ridership data to be used for transit service planning purposes only,” said Cosette Rees, LTD’s director, customer service and specialized services.

The value of the proposed six-year contract with Delerrok is $2.8 million, which includes the equipment and services to implement and maintain the system over a six year period. LTD and the Delerrok are committed to ensure a successful implementation, including outreach and education to help the community transition to the new program smoothly.

Details of the new electronic fare system will be worked out between LTD and Delerrok representatives over the next few weeks, with the electronic fare system set to go into service as early as late summer 2019.