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Consideration of Next Steps Toward Establishing the Tehama County Transportation Commission (TCTC) as an Independent Agency - Deputy Director Riske-Gomez
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Requested Action(s)
recommendation
A. Informational Presentation providing updated analysis of employee impacts (health insurance, PERS continuity, and transition timeline) and consider next steps toward affirming the Tehama County Transportation Commission’s (TCTC) statutory independence as provided for in state law.
AND/OR
B. Recommend staff present an informational presentation for the Board of Supervisors, accompanied by the Commission’s recommendation, summarizing employee impacts, statutory background, and potential transition considerations for Board discussion.
AND/OR
C. Recommendation to the Board of Supervisors to consider a resolution affirming the TCTC’s status as an independent public agency, and authorize transition of staff administration from the County to the Commission.
body
Financial Impact:
As outlined in the attachments provided.
Background Information:
The Tehama County Transportation Commission (TCTC) was created following adoption of the Transportation Development Act (TDA) of 1971. At that time, a resolution was adopted designating TCTC as the County’s Local Transportation Commission (LTC) and, by statute (Gov. Code § 29532), the Regional Transportation Planning Agency (RTPA) for Tehama County.
Under state law, LTCs and RTPAs are independent public agencies. Government Code § 29535 provides that “a local transportation commission may employ staff, enter into contracts, and conduct other activities necessary to fulfill its responsibilities as a regional transportation planning agency and local transportation commission.” Government Code § 65080 further requires each RTPA to prepare and adopt a Regional Transportation Plan, confirming the Commission’s distinct planning responsibilities under Title 7 of state law.
TCTC’s status as the RTPA has been consistently recognized by the State. A 1995 Memorandum of Understanding (MOU) between Caltrans and TCTC explicitly stated:
“This Memorandum of Understanding (MOU) is entered into by the California Department of Transportation (Caltrans) and Tehama County, hereinafter referred to as the Regional Transportation Planning Agency (RTPA) as recognized under Title 3, Division 3, Chapter 2, Article II, Section 29532 of the California Government Code.”
That MOU superseded an earlier 1973 agreement and reaffirmed TCTC’s statutory role as the RTPA. Under the section “Basis for Organization,” the same MOU provided:
“RTPA is acting as the Regional Transportation Planning Agency for Tehama County pursuant to Title 7, Division 2.5, Section 65080 of the California Government Code.”
In practice, rural counties, including Tehama, have historically chosen to house their LTCs within County departments for payroll, personnel, and administrative purposes. This has created the appearance of dependency, even though statutory independence exists.
At the Commission’s last meeting, Supervisor Hansen requested more concrete information on the potential effects of affirming TCTC’s independence in practice, specifically:
• Employee health insurance options,
• Continuation of CalPERS retirement benefits, and
• A reasonable timeline for transition.
Other counties have taken steps to clarify this distinction. In 2016, the Modoc County Board of Supervisors adopted Resolution 16-08, affirming the Modoc County Transportation Commission (MCTC) as an independent public agency with sole responsibility for its RTPA functions and the authority to contract directly for employee retirement benefits.
Accordingly, the present discussion is not about forming a new agency, but about responding to the Commission’s request for additional information, based on staff commendation, and considering whether to align administrative practice with statutory authority in a way that ensures continuity for employees and services.
Discussion:
1. Independence in Statute vs. Local Practice
• TCTC is legally an independent local agency under Gov. Code § 29532.1 and § 29535.
• The Modoc County Board of Supervisors clarified this point in 2016 through Resolution 16-08, affirming the Modoc County Transportation Commission (MCTC) as an “independent public agency with the sole responsibility for the activities and programs described… and with the ability to independently contract for a retirement plan for MCTC employees.” (MCBOS Res 16-08 MCTC)
• A similar resolution in Tehama would align practice with existing statutory authority.
2. Employee Impacts
• Health Insurance: Premium comparisons between County group plan and outside carriers are under review.
• PERS Continuation: CalPERS has confirmed that small local agencies, including LTCs, may participate seamlessly; final confirmation is pending.
• Timeline: A 6-12 month transition period would allow time for benefit procurement, MOUs, and enrollment.
Effect: Provides continuity of benefits while ensuring a smooth transition.
3. Administrative Framework - MOUs Needed
• Auditor, County Counsel, Personnel, and Public Works services could continue to be provided under Memorandums of Understanding, ensuring continuity while clarifying that staff ultimately report to the Commission.
4. Facilities & Operations
• TCTC/TRAX campus is owned with transportation funds; no reliance on County facilities maintenance.
• Public Works services are reimbursed at weighted rates.
Conclusion:
TCTC is already an independent public agency under state law. This agenda item is informational and is intended to clarify statutory background, summarize potential employee impacts, and highlight examples from other counties.
The Commission is not being asked to decide on separation at this time. The only potential next step would be to request that the Board of Supervisors consider whether to affirm TCTC’s independence in alignment with state law.
The Commission may:
• Receive this update only, or
• Receive the update and direct staff to prepare materials for the Board of Supervisors, including employee impact analysis, a proposed transition timeline, draft MOUs, and draft resolution language for Board discussion.
Staff Recommendation
Staff recommends that the Commission receive the informational update and, if desired, direct staff to prepare an item for the Board of Supervisors that:
1. Affirms TCTC’s status as an independent public agency under state law, consistent with Government Code §29532.1 and precedent such as Modoc BOS Resolution 16-08.
2. Provides employee impact information (health insurance, PERS, benefits).
3. Outlines a proposed transition schedule (approximately 9-12 months).
4. Includes draft Memorandums of Understanding with Auditor, County Counsel, Personnel, and Public Works to ensure continuity of services.
5. Provides draft resolution language for BOS consideration, affirming TCTC’s independence consistent with statute and precedent (e.g., Modoc BOS Resolution 16-08).
TCTC Transition Timeline
Key Steps Remaining
Phase 1: Immediate Actions (Sept-Dec 2025)
Governance & Legal
• Adopt Commission resolution affirming TCTC as the sole Regional Transportation Planning Agency (RTPA) and Local Transportation Commission (LTC).
• Update bylaws and Conflict of Interest Code.
Administrative Agreements
• Approve MOUs with County Auditor (payroll), Counsel, Personnel, and Public Works for interim services.
• Formalize reimbursement rates for any County staff assistance.
Finance & Compliance
• Reconfirm Master Fund Transfer Agreement (MFTA) with Caltrans.
• Verify Master Fund Accounts and reporting remain compliant.
• Adopt resolution reaffirming TCTC’s Procurement Policy (already aligned with 2 CFR 200 and Caltrans Local Assistance).
• Establish reserve account - transition from 2 to five year model.
• Begin drafting 5-year operating plan.
Employee Communication
• Hold employee meeting to outline transition timeline and confirm continuity of CalPERS, health, and other benefits.
• Create individual personnel files for transfer to TCTC.
• Announce anticipated effective transition of employer status (target: July 1, 2026).
Phase 2: Employee & HR Transition (Jan-June 2026)
Payroll & HR Systems
• Obtain Employer Tax ID.
• Retain interim payroll administration firm.
• Implement HR/payroll data management system (QuickBooks or equivalent).
Personnel Policies
• Update Employee Handbook and HR policies - draft already created (leave accruals, disciplinary process, training, etc.).
• Adopt Deferred Compensation Plan and Retiree Health Benefit policy.
• Adopt workers’ comp, State Disability Insurance, and unemployment insurance coverage.
Benefits
• Finalize CalPERS contracting transition; confirm reciprocity for service credit.
• Compare County health pool vs. CalPERS Region 1 premium rates; select and adopt TCTC plan during open enrollment.
• Submit Section 218 Agreement paperwork to provide Social Security/Medicare (acknowledge 18-24 month process).
Employee Transition
• Issue TCTC employment contracts/letters effective July 1, 2026.
• Finalize payroll transition plan to ensure seamless first pay cycle under TCTC.
Phase 3: Facilities & Assets (Spring 2026)
• Execute agreements clarifying ownership and responsibility for TCTC/TRAX campus (purchased with 100% transportation funds).
• Reaffirm TRAX fleet ownership and protections tied to state/federal transit funding.
• Formalize lease agreements for Flood and Sheriff offices ($1 annual rent).
• Clarify responsibility for campus maintenance (currently not provided by County Facilities).
Phase 4: Full Independence (July 2026 - Jan 2027)
Day-One Independence - July 1, 2026
• Employees officially transition to TCTC payroll and benefits.
• Ensure uninterrupted coverage for medical, retirement, and accrued leave balances.
• Transition payroll administration from interim vendor to in-house system once stable.
Governance & Compliance
• Commission adopts final updated bylaws and Conflict of Interest Code.
• Submit compliance certification package to Caltrans/FHWA (procurement policy, MFTA confirmation, audit readiness).
Operations & Services
• Public rollout emphasizing uninterrupted TRAX, ParaTRAX, METS, GIS, and flood coordination services.
• Continue implementation of 5-year operating plan.
Long-Lead Items
• Section 218 Agreement processing continues into 2027.
• Finalize any CalPERS adjustments as required.
Statutory Authority
Local Transportation Commissions (LTCs) / RTPAs
Government Code § 29532 - Designation of Transportation Planning Agency
• “In each county, the county transportation commission, if any, created pursuant to Section 29535, is the transportation planning agency.”
o Defines who is the RTPA in each county.
o Ensures LTCs are recognized in law as the decision-making transportation planning agency.
Government Code § 29535 - LTC Powers and Composition
• Provides for creation of LTCs where no other regional agency exists.
o Composition: 3 members appointed by the Board of Supervisors, 3 by the city selection committee, and in some cases transit district reps.
o Powers:“A local transportation commission may employ staff, enter into contracts, and conduct other activities necessary to fulfill its responsibilities as a regional transportation planning agency and local transportation commission.” This is the key statutory authority showing LTCs (like TCTC) are already legally independent and empowered to hire staff and contract on their own.
Government Code § 29536 - Election to Form LTC
• Allows counties with councils of governments (COGs) to elect to form an LTC under § 29535.
• Requires concurrence of the Board of Supervisors and cities representing at least 50% of the population.
• Confirms that LTCs are created through local action but once formed, have the statutory powers listed in § 29535.
Precedent - Modoc County BOS Resolution 16-08 (2016)
• Modoc’s BOS formally recognized that its LTC (the Modoc County Transportation Commission) was already an independent agency:
“The Modoc County Board of Supervisors affirms and designates MCTC as an independent public agency with the sole responsibility for the activities and programs described… and with the ability to independently contract for a retirement plan for MCTC employees.”
MCBOS Res 16-08 MCTC
This shows BOS affirmation is a clean, direct way to realign local practice with statutory independence.
Key Takeaway for Tehama
• By law (Gov. Code §§ 29532, 29535), TCTC is already an independent public agency.
• The issue is not creating independence but affirming and aligning practice with the statute by transitioning staff away from County administration.
• Precedent (Modoc BOS 16-08) shows this can be done by Board resolution without LAFCO involvement.