To: Board of Supervisors
Department or Agency Name(s): Sonoma County Public Infrastructure
Staff Name and Phone Number: Johannes J. Hoevertsz, 707-565-2550
Vote Requirement: Majority
Supervisorial District(s): Countywide
Title:
Title
FY 2026-27 to FY 2030-31 Sonoma County Transit Operations Agreement
End
Recommended Action:
Recommended action
A) Award the operating agreement to Transdev Services, Inc., to operate Sonoma County Transit from July 1, 2027, to June 30, 2031, in an amount up to $82,065,107; and delegate authority to the Director of Public Infrastructure to execute said operating agreement, in form approved by County Counsel.
B) Delegate authority to the Director of Public Infrastructure to exercise and execute the extension options under the subject contract, contingent on availability of sufficient funding and in form approved by County Counsel.
end
Executive Summary:
Since its inception in July 1980, Sonoma County has contracted out the daily operation of its transit system to private management firms. Historically, three firms have performed these duties: DAVE Systems (July 1980 - September 1985); Laidlaw Transit (October 1985 - December 1988); and Transdev Services, Inc. (and its predecessor companies Veolia and ATC/Vancom) since January 1989.
The operations agreement was last solicited in 2016 and resulted in the existing agreement with Transdev Services Inc., to operate Sonoma County Transit through June 30, 2021, with five one-year extension options. Each of the option years were elected, extending the contract through June 30, 2026.
The operations agreement was rebid through a competitive procurement process in Fall 2025. This action recommends award of the new operations contract to Transdev Services, Inc.
Discussion:
On October 15, 2025, a Request for Proposals to Operate Sonoma County Transit was issued, followed by pre-bid conference on November 12, 2025, with eleven participants and six vendors represented. Three total bids were received on December 23, 2025, and one was deemed non-responsive. The two responsive bids were from: Transdev Services, Inc. and Keolis Transit Service, LLC. Following bidder interviews and requests for further information, both bidders submitted a Best and Final Offer on February 9, 2026.
The proposals were thoroughly evaluated by a panel made up of four County staff and one peer agency representative. Proposals were evaluated on proposers’ qualifications, delivery approaches, and price. Additional factors considered in evaluating the proposals included proposer’s integrity, history of compliance with public policy, past performance, and financial and technical resources. Both proposals were rated high in terms of responsiveness, competence, and proposed personnel and programs. In terms of pricing, both proposals represent a significant increase in both fixed and variable costs over the existing contract, which has been in place for a decade. This increase was anticipated, based on industry trends and the dramatic increase in the price of goods and services since 2016. The two bids were similarly priced, within less than a 5% difference over the life of the base five-year contract.
Given their demonstrated ability to reliably operate fixed route services for the County and maintain the Sonoma County Transit fleet (including across natural disasters and the pandemic), along with the Transdev team’s familiarity with the County operation and Transit staff’s positive experience in working with key Transdev personnel, the evaluation panel recommends award of the new operations contract to the incumbent contractor, Transdev Services, Inc.
Under the proposed contract, rates and fees are set for the first five years. Actual costs under the contract each year will be based on actual services levels, and County will set those service levels. In subsequent years, should the County exercise its options to extend the contract, then Transdev’s rates will be based on the preceding contract year’s rates, adjusted at least 3.5% and no more than 4.5% per year, based on increases to the Consumer Price Index (CPI) for the Bay Area.
Payments for each fiscal year of the Term are estimated to be as follows, based on actual service levels:
$14,890,159 (July 1, 2026 to June 30, 2027);
$15,676,559 (July 1, 2027 to June 30, 2028);
$16,445,494 (July 1, 2028 to June 30, 2029);
$17,131,078 (July 1, 2029 to June 30, 2030); and
$17,921,664 (July 1, 2030 to June 30, 2031).
Systemwide, ridership continues to rebound and is approximately 88% of its pre-COVID levels. Over the past year, ridership has continued to increase, particularly youth ridership. Implementation of the fare-free youth program, supported by the County’s Climate Resilience fund, has attributed largely to the ridership increase. It is anticipated that pre-pandemic levels of ridership will return in FY 2026-27.
Strategic Plan:
N/A
Racial Equity:
Was this item identified as an opportunity to apply the Racial Equity Toolkit?
No
Prior Board Actions:
05/14/24 -- Authorize the Director of Public Infrastructure to execute Amendment No. 2 with Transdev Services, Inc., to operate Sonoma County Transit from July 1, 2024 through June 30, 2026.
05/11/21 - Approve and authorize Chair to execute Amendment Number 1 with Transdev Services, Inc. to operate Sonoma County Transit for a three-year period beginning July 1, 2021.
05/17/16 - Approve and authorize Chair to execute a Five-Year Agreement with Transdev to Operate Sonoma County Transit effective July 1, 2016 through June 30, 2021.
06/06/14 - Board approved Amendment No. 2 with Veolia Transportation Services Inc., to operate Sonoma County Transit from July 2014 through June 30, 2016.
05/17/11 - Board approved Amendment No. 1 with Veolia Transportation Services Inc., to operate Sonoma County Transit from July 1, 2011 through June 30, 2014.
06/06/06 - Board approved five-year agreement with Veolia Transportation Services Inc., to operate Sonoma County Transit effective July 1, 2006 through June 30, 2011.
Fiscal Summary
|
Expenditures |
FY25-26 Adopted |
FY26-27 Projected |
FY27-28 Projected |
|
Budgeted Expenses |
|
$14,890,619 |
$15,677,098 |
|
Additional Appropriation Requested |
|
|
|
|
Total Expenditures |
|
$14,890,619 |
$15,677,098 |
|
Funding Sources |
|
|
|
|
General Fund/WA GF |
|
|
|
|
State/Federal |
|
$13,648,836 |
$14,435,315 |
|
Fees/Other |
|
$1,241,783 |
$1,241,783 |
|
Use of Fund Balance |
|
|
|
|
General Fund Contingencies |
|
|
|
|
Total Sources |
|
$14,890,619 |
$15,677,098 |
Narrative Explanation of Fiscal Impacts:
Funding for the FY27 Operations Agreement is included in the Transit Division’s Article 4 (41401-34040101) and Article 8 (41402-34040201) FY 2026/27 Recommended Budget and aligns with Sonoma County Transit’s FY 2026/27 annual TDA/STA funding claim submitted to the Metropolitan Transportation Commission. For FY27, anticipated funding totals $1,241,783 from fare revenue, $12,368,836 from Transportation Development Act (TDA) and State Transit Assistance (STA) funds, along with $1,280,000 from the Federal Transit Administration.
Narrative Explanation of Staffing Impacts (If Required):
None
Attachments:
None.
Related Items “On File” with the Clerk of the Board:
TrasDev Operating Agreement award