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Committee approves amendment to First Transit payments, shifting monthly prepayments to county
Summary
Planning staff told the committee First Transit (Transdev) requested monthly prepayment equal to 1/12 of estimated federal funds (minus fare box proceeds); the committee approved amending the contract to reflect that change, noting the county will front cash and seek quarterly federal reimbursements.
County planning staff explained that First Transit, the county's contracted transit operator (Transdev), requested a change to the payment schedule so the company would receive one-twelfth of estimated federal funds each month rather than waiting for quarterly federal reimbursements. Jack K. Wheeler said this would shift short-term cash-flow risk to the county but would allow the county to retain any additional federal funds that arrive.
"First Transit wants 1/12 of the estimated federal funds paid to them every month," Mr. Wheeler said, noting the county will credit fare-box proceeds monthly so the actual monthly draw will be less than the contract total. Christopher Brewer told the committee the total contract is $560,000 and federal reimbursements are expected quarterly.
Committee members asked about business planning and timing; Ms. Kelly H. Fitzpatrick asked whether the company had shared a business plan, and Mr. Wheeler said staff would continue discussions and present further items in March or April. The committee voted to authorize the Director of Planning to amend the contract to reflect monthly payments (motion carried 3-0).
