A dispute over who will pay the city of Porterville millions of dollars for public transportation services over the past couple of years is at the center of a lawsuit filed by the city on Thursday.
The city claims that the Tulare County Regional Transit Agency (TCRTA) owes it $3 Million.
That includes a $1.6 million loan.
"The city, when the transit agency was initially being formed, gave a loan which became due several months ago, and which the transit agency hasn't yet paid and then there's about $1.3 million in maintenance services," said Mike Maurer, the lawyer representing the City of Porterville.
TCRTA was formed in 2020 and has been providing transportation services to almost every town in Tulare County since 2023.
This past July, the City of Porterville decided to utilize their own transportation services, locally operated by Sierra Management.
Abul Hassan, has been the Executive Director of the TCRTA since December.
"I was surprised because we have not been served with a notice. The City of Porterville is suing the TCRTA. But having read the publication. My 1st impression is this is political theater," Hassan said about the lawsuit.
"The reality is, the TCRTA has paid over $6 million of services rendered to the City of Porterville through the course of the last fiscal year, which ended on June 24, 2024."
Action News did learn that Richard Tree, the previous executive director of TCRTA, Richard Tree, is currently the City of Porterville's transit director.
The City also confirms that Sierra Management, which is currently providing their services, is owned by Tree's brother.
"But the company was hired separately from that employee. It was hired through a competitive process, and it was actually the only company that responded to that competitive process," said Maurer.
Action News' request for an interview with Tree was redirected to the city's attorney.
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