City of Alexandria, Virginia
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MEMORANDUM
DATE: OCTOBER 23, 2025
TO: THE HONORABLE MAYOR AND MEMBERS OF CITY COUNCIL
THROUGH: JAMES F. PARAJON, CITY MANAGER
FROM: MICHAEL MOON, INTERIM DIRECTOR, TRANSPORTATION AND ENVIRONMENTAL SERVICES
DOCKET TITLE:
TITLE
Request for Release of Contingency Funds for DOT Paratransit Program.
BODY
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ISSUE: City Council held 25% of DOT Paratransit program funding in reserve at the beginning of FY 2026 and requested that staff identify ways to improve performance and efficiency prior to release of those funds.
RECOMMENDATION: That the City Council release and allocate $513,055 of Contingent Reserves for DOT Paratransit in FY 2026.
BACKGROUND: The DOT Paratransit program provides critical transportation services to residents with disabilities and satisfies federal requirements for providing transportation for people with disabilities who are unable to ride public transportation. With the adoption of the FY 2026 budget, the City Council placed 25% of DOT Paratransit program funding into contingency and directed staff to evaluate ways to improve performance and efficiency.
DISCUSSION: Staff have developed a package of cost savings and efficiency measures that will be implemented in FY 2026 and beyond. These measures include the following and will be discussed in more detail during the presentation (Attachment 1):
1. Vehicle Procurement and Leasing (discussed in more detail in a separate docket item)
2. Fare Restructuring (discussed in more detail in a separate docket item)
3. AI agent for some Call Center Services
4. Unified software for City vehicles transportation services
5. Coordinate with Arlington County program
6. Travel Training for seniors and people with disabilities
7. Transportation Voucher Program
Together, these actions will improve efficiency and reduce expenditures without diminishing the quality or availability of service for DOT riders.
Given the essential nature of paratransit services, the release of contingency funds is necessary to meet projected service demand, maintain compliance with federal ADA requirements, and ensure service continuity for residents who depend on DOT.
FISCAL IMPACT: Release of the $513,055 contingency funds will provide the full FY 2026 program budget of $2,052,220. Cost savings measures are expected to produce additional savings and extend available resources, reducing the likelihood of midyear shortfalls.
ATTACHMENTS:
1. Presentation
STAFF:
Emily A. Baker, P.E., Deputy City Manager
Hillary Orr, Deputy Director, T&ES
Katye North, Division Chief, Mobility Services, T&ES
Owen Albrecht, Paratransit Program Manager, T&ES