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TRAX Contract Update - Deputy Director Riske-Gomez
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Requested Action(s)
recommendation
Informational presentation regarding the status of the Tehama Rural Area Express (TRAX) contract with Paratransit Services.
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Financial Impact:
Approximately 2M annually in transit funding.
Background Information:
This agenda item outlines the ongoing contracting issues with Paratransit Services, focusing on the challenges related to insurance costs, wage increases, and the recent proposal by Paratransit Services to terminate the contract.
Key Points:
Lack of Mutual Agreement for Contract Termination:
a. Paratransit Services has proposed terminating the contract, claiming mutual agreement.
b. The County has not consented to terminate the contract, thus there is no mutual agreement for termination.
Consistent Dialogue and Discussions:
a. From January 7, 2024, to May 30, 2024, there have been ongoing dialogues involving DRMT, Paratransit Services, Caltrans, and County staff.
b. These discussions were crucial in forming the County's response to the issues raised which questioned the nature of the insurance increases and the need for increased driver's compensation outside of the 25% hazard pay and annual Cost of Living increases.
Insurance and Wage Adjustments:
a. The $10M insurance requirement stems from Paratransit Services past performance and broader statewide insurance trends, beyond the County's control.
b. This insurance threshold aligns with emerging trends across transit agencies.
c. The County has proposed a timeline for wage and insurance adjustments, including a continued 25% wage increase for drivers, to address these financial concerns by July 1, 2025.
Unilateral Contract Extension:
a. The contract includes a clause allowing the County to extend the agreement unilaterally for up to two additional years, making a total of four years.
b. This right was exercised by the County as part of the current contractual arrangement.
c. The contr...
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