Summary: During its March 12 Board meeting, new CalVans Executive Director Sidd Nag delivered a stark financial assessment to the membership indicting that the agency is approximately 60 to 90 days away from insolvency without immediate intervention from member agencies or State assistance. CalVans is the main provider for the Fresno region’s agriculture vanpool program through Measure C. Fresno COG participates as a member of the joint powers agreement that empowers CalVans, and is potentially exposed for administrative expenses, including pension costs, should the agency default.
In September 2025, Fresno COG staff provided the Policy Board a summary of CalVans’ financial condition subsequent to a “going concern” finding on the CalVans June 30, 2024 financial audit. That report is again provided in the agenda for the benefit of new members. Also attached to this annotated report is a broader memo fully detailing CalVans financial condition as of March 2026.
In summary, Calvans’ solvency crisis is real and not totally unexpected. The problem is structurally built into Calvans’ business model and can be explained simply. Fully 92.4% of Calvans operations cost are covered with service fare revenue. This business model leaves little room for replacing vans as they age out or even for administrative expenses. That point cannot be overemphasized.
Using Measure C funds, Fresno COG is one of the few member agencies that subsidizes farmworker vanpools. Through February, Fresno COG has reimbursed Calvans $103,000. In the fiscal year ended June 30, 2025, Fresno COG reimbursed CalVans $185,000. The trend appears to be tapering down. These transactions represent reimbursement for actual costs incurred, so there is no question of the money being diverted to solve cash flow problems.
Membership in the CalVans joint powers agreement (JPA) is not a condition of making these reimbursements. Fresno COG could continue the program even if it were not a member of the JPA. However, Measure C is set to sunset in June of 2027 and continuation of Measure C beyond that date cannot be not guaranteed.
The CalVans JPA provides that a member may withdraw with a 180-day notice. Withdrawal will not discharge, impair, or modify any voluntary obligation the withdrawing member has agreed to nor effect the remaining members. A withdrawing member shall not be entitled to the return of any funds or assets belonging the Transit Authority.
ACTION: Staff recommends the Policy Board authorize the executive director to notify CalVans in writing of Fresno COG’s intent to withdraw from its joint powers agreement within 180 days.