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Amendment No. 3 to Paratransit Agreement - Deputy Director Riske-Gomez
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Requested Action(s)
recommendation
Request approval and authorization for the Executive Director to sign Amendment No. 3 to the agreement between Tehama County and Paratransit Services for managing TRAX, ParaTRAX, and METS thereby increasing the maximum compensation payable not to exceed $2,025,830.60.
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Financial Impact:
Additional $308,571.00 for FY2024/25 in Local Transportation Funds.
Background Information:
Throughout FY 2023/24, Tehama County Transit Agency Board staff engaged in extensive discussions with Paratransit Services regarding rising operational costs associated with managing TRAX, ParaTRAX, and METS. The primary driver of these increased costs was attributed to substantial increases in insurance premiums, which impacted the financial sustainability of continuing services at the current compensation rate.
Staff worked closely with Paratransit Services to evaluate these financial pressures and explored various funding scenarios to maintain the quality and accessibility of transit services for the community. After thorough review and negotiations, it was determined in December of 2024 that an additional $308,571.00 in Local Transportation Funds would be required to address these increased costs adequately.
Amendment No. 3 to the agreement between Tehama County and Paratransit Services increases the maximum compensation payable to Paratransit Services for FY 2024/25 to an amount not to exceed $2,025,830.60. This amendment ensures continued management and operations of TRAX, ParaTRAX, and METS without service disruptions, while addressing the financial challenges posed by rising insurance costs.