June 23, 2026
Public Works
DATE: June 23, 2026
TO: Mayor Martinez and Members of the City Council
FROM:
Daniel Chavarria, Public Works Director
Josef Munoz, Assistant Deputy Director of Public Works
Gabino Arredondo, Project Manager
Sofia Montenegro, Administrative Analyst
Subject:
Amendment for Ride Hailing Transportation Services with Lyft and Uber for Ambulatory Paratransit Clients
FINANCIAL IMPACT: The proposed increase of $320,000 to the existing ride-hailing service agreements, for a new total
not-to-exceed amount of $920,000 with no annual
funding limit, is funded by Measure J revenue allocated by the Contra Costa Transportation Authority (CCTA) to
support Richmond Paratransit services for eligible clients in Richmond, North Richmond, Kensington, and El
Sobrante. Funding is available in the approved Fiscal
Year 2025–2026 Public Works budget (Account String:
10385051-400201). There is no impact on the General
Fund.
PREVIOUS COUNCIL
ACTION:
July 2, 2024
STATEMENT OF THE
ISSUE:
The ride hailing services (Lyft & Uber) supports
transporting ambulatory paratransit clients to their trip destinations while allowing Richmond Paratransit to
serve non-ambulatory (wheelchair/ADA) clients has
proven to be very popular that projected annual funding limits have been met. City staff are seeking to amend the recommended action to increase the annual funding
limits to continue services without interruptions.
AGENDA
REPORT
June 23, 2026
RECOMMENDED ACTION: APPROVE an amendment to the recommended action approved on July 2, 2024, for the three-year service
agreements with Lyft, Inc., and UBER Inc. (1) eliminating annual funding limits of $200,000 for total not to exceed amounts of $600,000 for each vendor and increasing the
total not to exceed amount by $320,000 for a new total
not to exceed amount of $920,000 with no annual funding limit; and (2) amending the two one-year extension
options for each agreement from $200,000 to $360,000
for each option year per vendor - Public Works
Department (Gabino Arredondo 510-620-6606).
DISCUSSION:
Background
Since 1976, the mission of R-Transit has been to provide safe and reliable transportation services for seniors (55 years and older) and individuals with disabilities.
The program improves access to community services and activities, reduces social isolation, and supports independent living.
Since 2019, the City has contracted with Lyft, Inc. to provide on-demand, non-ADA transportation services for Richmond Paratransit (R-Transit) clients through a pre- scheduled and dial-a-ride program. The service operates 24 hours per day, seven days per week, providing clients with additional mobility options while reducing travel times.
The agreement has enhanced service delivery by providing R-Transit clients with a convenient method for scheduling rides through the Lyft platform. Clients are able to schedule trips with minimal wait times and are not charged cancellation fees for eligible rides. In addition, the service is available outside of traditional R-Transit operating hours, which are Monday through Friday, excluding holidays, from 8:30 a.m. to 5:00 p.m.
In April 2024, City staff released a Request for Proposals (RFP) seeking qualified transportation providers to deliver 24/7 ride-hailing services for West Contra Costa County residents who qualify for Richmond Paratransit services. On May 3, 2024, the City received two proposals from qualified firms: Lyft, Inc. and Uber Technologies, Inc.
On July 2, 2024, the City Council approved service agreements with both Lyft, Inc. and Uber Technologies, Inc. in an amount not to exceed $200,000 annually for each vendor for a term commencing July 1, 2024, and ending June 30, 2027, with an option for two additional one-year extensions at $200,000 for each option year per vendor.
Current Operations and Proposed Amendments
Funded through Measure J, the R-Transit ride-hailing program provides curb-to-curb transportation services that clients schedule directly through the Lyft or Uber mobile
June 23, 2026
applications. Eligible participants in the co-pay program pay $3 per trip. Participants enrolled in the low-income program receive rides at no cost for trips up to $20, with clients responsible for any amount exceeding $20.
The Lyft component of the R-Transit program (the Uber component has not yet commenced operations) currently provides transportation services for ambulatory paratransit clients, allowing City-operated paratransit vehicles and drivers to focus on serving non-ambulatory and ADA-accessible transportation needs. The program has experienced strong demand and utilization, resulting in projected expenditures reaching the currently authorized annual funding limits. City staff projects that approximately 30,500 trips will be completed through the Lyft program during Fiscal Year 2025-26.
Implementation of the Uber agreement has been delayed pending resolution of business license classification requirements. Once operational, the availability of an additional transportation provider is expected to increase program utilization and improve service availability for eligible clients.
The July 2, 2024, staff report indicated that staff would monitor utilization and funding levels for both service agreements and return to the City Council with recommendations as necessary. Due to sustained demand for the program, staff recommend amending the recommended action approving the service agreements to remove annual funding limits and increase the total contract authority, thereby ensuring continuity of service and avoiding interruptions for eligible R-Transit clients.
DOCUMENTS ATTACHED:
Attachment 1 – Staff Report, July 2, 2024
Attachment 2 – Service Agreements