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County reviews new First Transit/Transdev payment terms; staff say exposure is limited
Summary
Staff explained a shift from passing federal funds through to fronting monthly payments to First Transit/Transdev (about 0.083 of annual estimate per month) with reimbursement later; staff said federal reimbursements generally arrive quarterly and the county could terminate if funding stops.
Staff presented a proposed change in practice for the county's transit contract with Transdev/First Transit: rather than acting as a passthrough for federal funds, the county would front monthly payments to the provider and then seek reimbursement.
"They essentially want what is estimated as the federal funds that we receive through the state. They want 0.083 of that, so a payment every month," a staff member said, adding that the county would retain any additional federal funds that arrive later. Staff noted federal payments are generally quarterly and characterized the risk as limited: "If the federal funds ever went away, we could cut the contract off pretty quickly." Committee members discussed farebox credits and cash-flow implications and asked for a business plan from the provider; staff said more details will be brought back in March or April.
