REPORT TO THE CITY COUNCIL
FROM: GREGORY A. BARFIELD, M.A., Director
Department of Transportation
BY: SHARLEE FLORES, Senior Management Analyst
Department of Transportation
SUBJECT
Title
Approve the Second Amendment to the Requirements Contract for ADA paratransit service with WeDriveU, in the amount not to exceed $32,000,000 for the next two (2) years with a total revised contract amount not to exceed $57,183,393.52 for the remainder of the contract term through November 3, 2027 (Original Bid File No. 9524).
Body
RECOMMENDATION
Staff recommends that Council approve the second amendment to the requirements contract for ADA paratransit service with WeDriveU, in the amount not to exceed $32,000,000 for the next two (2) years with a total revised contract amount not to exceed $57,183,393.52 for the remainder of the contract term through November 3, 2027 (Original Bid File No. 9524).
EXECUTIVE SUMMARY
To receive Federal Transit Administration (FTA) funding, federal law, through the Americans with Disabilities Act (ADA), mandates that public transit agencies provide paratransit services for individuals with disabilities that is comparable to fixed route services. To meet this requirement, the Department of Transportation - Fresno Area Express (FAX) solicited proposals through the Request for Proposals (RFP) process for the provision of paratransit services.
The RFP for paratransit service was released on November 20, 2019, and was publicly posted and sent to 18 potential proposers. Responsive and responsible proposals were received from four (4) bidders. The contract (File ID# 20-001167) in the amount of $25,183,393.52 for three (3) base years was awarded to National Express Transit Corporation (NEXT) by Council on September 17, 2020, now operating as WeDriveU. Four (4) option years were included in the contract, but their value was not included in the original award amount.
FAX has exercised two of the four option years, and now seeks a contract amendment to increase the spending authority in the amount not to exceed $32,000,000 in order to pay for the last two (2) years with a total revised contract amount not to exceed $57,183,393.52 for the remainder of the contract term through November 3, 2027.
BACKGROUND
As a condition of receiving FTA funding, the ADA mandates that public transit agencies such as FAX provide paratransit services for individuals with disabilities that is comparable to fixed route service. To ensure compliance with this requirement, FAX provides Handy Ride paratransit services via a contract service provider, which is competitively awarded.
FAX solicited proposals through RFP process for the provision of demand-responsive paratransit service within the Fresno-Metropolitan area. Services to be provided by the contract awardee include but are not limited to: day-to-day operation of paratransit service, management, employment, training of all paratransit employees, maintenance and repair of paratransit equipment, customer relations, preparation of financial and productivity reports, and other actions necessary to comply with the contract specifications.
The RFP for paratransit service was released on November 20, 2019, and was publicly posted and sent to 18 potential proposers. Responsive and responsible proposals were received from four (4) bidders. The contract (File ID# 20-001167) in the amount of $25,183,393 was awarded to National Express Transit Corporation (NEXT) by Council on September 17, 2020, now operating as WeDriveU. The awarded contract was approved for three (3) years from the date of the Notice to Proceed (issued on November 4, 2020) and contains provisions for four one-year extensions through November 3, 2027.
At the time the contract was awarded in late 2020, the total value was stated in the award documents as not to exceed $25,183,393.52, which did not account for the three base years plus four (4) option years as stated in the cost proposal from the vendor. The option years are tied to increases which are not to exceed the Consumer Pricing Index for transportation services, so exact amounts were/are not known.
On June 10, 2025, the first amendment to the contract was approved to acknowledge the contractor’s legal entity name change and restructuring to WeDriveU, Inc. dba National Express Transit corporation (f/k/a National Express Transit Corporation).
FAX seeks to amend the contract with WeDriveU for a second time to increase the spending authority to account for the option years of the agreement. Currently, the contract is in Year 5 with two option years remaining.
Staff recommends City Council approve this second amendment to the requirements contract for paratransit services with WeDriveU in the amount not to exceed $32,000,000 for the remaining option years, with a total revised contract amount not to exceed $57,183,393.52 for the remainder of the contract term through November 3, 2027.
The City Attorney has reviewed the Agreement and approved it to form.
ENVIRONMENTAL FINDINGS
By the definition provided in the California Environmental Quality Act Guidelines Section 15378, this contract amendment does not qualify as a “project”; therefore, it is exempt from the California Environmental Quality Act requirements.
LOCAL PREFERENCE
Local preference was not implemented because federal funding precludes the use of geographical preferences.
FISCAL IMPACT
There is no impact to the General Fund from this action. Expenses from this contract shall be funded primarily through FTA Program 5307 funds and Transportation Development Act (TDA) funds. FAX enterprise funds will make up the required local match. Sufficient appropriations were included and are available in the FY 2026 budget, and will be included in subsequent budget years.
Attachments:
Original Contract with WeDriveU (formerly NEXT)
First Amendment to Contract with WeDriveU
Second Amendment to Contract with We DriveU