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Contract Review & Cost Sheet Overview - Deputy Director Riske-Gomez And General Manager Young
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Requested Action(s)
recommendation
Informational presentation regarding Paratransit contract for TRAX, ParaTRAX and METS operations.
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Financial Impact:
None.
Background Information:
1) Who’s Who & What’s Covered
• Parties: Tehama County Transit Agency (County) & Paratransit Services (Contractor).
• Services: TRAX fixed-route, ParaTRAX demand-response (ADA), METS volunteer driver program.
2) Contract At-A-Glance
• Term: Initial: Nov 1, 2019 → Jun 30, 2024.
• Options: County unilateral extensions covering FY 2024/25, 2025/26, 2026/27, 2027/28 (up to 4 option years; total potential 9-year term).
• Compensation model:
o Fixed Hourly Rate (multiplied by Vehicle Revenue Hours).
o Fixed Monthly Rate (12 months/year).
o Not-to-exceed: “Maximum Annual Cost” (excludes defined reimbursables below).
• VRH definition: Not “gate-to-gate.”
o Fixed route: first timed stop → last timed stop.
o Demand-response: public service hours available.
• Invoicing & Payment:
o Separate monthly invoices for TRAX, ParaTRAX, METS.
o Due to County by the 10th for prior month; undisputed amounts paid within 30 days.
• Change mechanisms:
o Minor Change Directive (County memo): service changes OK without amendment if ≤±20% VRH and no increase in compensation.
o Amendment/Change Order: required for compensation changes or larger scope shifts.
• Oversight: Caltrans approval required in advance for third-party contract modification and contractual option to extend rights are exercised when federally funded
3) Current Cost Sheet Snapshot (Proposal Form A)
Assumes annual service level of 23,456 VRH in option years.
Rates by Option Year
• FY 2024/25: Fixed Hourly $39.73 | Fixed Monthly $98,569
• FY 2025/26: Fixed Hourly $41.12 | Fixed Monthly $102,019
• FY 2026/27: Fixed Hourly $42.63 | Fixed Monthly $105,707
• FY 2027/28: Fixed Hourly $44.25 | Fixed Monthly $109,651
Maximum Annual Cost (illustrative)
• FY 2024/25: $2,114,785.27 (Cost/VRH $90.16)
• FY 2025/26: $2,188,788.39 (Cost/VRH $93.31)
• FY 2026/27: $2,268,301.76 (Cost/VRH $96.70)
• FY 2027/28: $2,353,763.99 (Cost/VRH $100.35)
Reimbursables (outside not-to-exceed)
• Fuel at actual cost
• Engine/transmission/differential major overhauls at actual cost (if directed)
• METS volunteer mileage (IRS rate) and safety-meeting meals
• Incremental insurance for METS (beyond Section 6.19) and any additional GL/auto insurance County requires
• Technical transit planning & mobility training at the Fixed Hourly Rate
• Facility relocation costs excluded unless amended
4) Recent Board Actions (Amendments)
• Amendment 1 (effective June 1, 2021):Accommodates for the 25% increase in compensation to the drives for CARES Act hazard pay
• Amendment 2 (effective June 1, 202): Increased FY 2023/24 maximum obligation by $125,000 to $1,788,189.82 for fixed-route enhancements and paratransit area expansion.
• Amendment 3 (effective December 9, 2024): Increased compensation by $308,571.00 for FY 2024/265 for insurance cost escalation (Caltrans approval on file)
• Amendment 4 (effective July 28, 2025): Increase compensation by $99,928.23 for FY 2025/26for insurance cost escalation (Caltrans approval on file)
5) What to Look for on Invoices
• Three separate invoices (TRAX/ParaTRAX/METS) each month.
• Fuel shown as a separate line item per service.
• VRH and monthly charges aligned to rates above; check that any service changes are within ±20% VRH unless a formal amendment exists.
• Credits for fare revenue applied against monthly charges (County owns fare revenue).
6) FAQs for New Commissioners
• Q: When does a compensation tweak need an amendment?
o A: If it increases compensation or pushes beyond ±20% VRH, you’ll see an amendment. Otherwise, a Minor Change Directive from the County suffices.
• Q: Who approves contract changes tied to federal funds?
o A: Caltrans must sign off before the Board’s action is implemented when federal funds are involved.
• Q: Where do I find the current rates?
o A: Proposal Form A (Cost Sheet) in the contract packet.