Report to Mayor and City Council
Tuesday, March 21, 2023
Consent
SUBJECT:
Title
CONSIDER APPROVAL OF AMENDMENT NO. 3 TO THE AGREEMENT WITH ADMINISTRATIVE SERVICES COOPERATIVE, INC. FOR THE CITY'S DIAL-A-RIDE PROGRAM TO EXTEND THE CONTRACT TERM BY A ONE-YEAR PERIOD (CITY COUNCIL)
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I. SUMMARY
The City’s Dial-A-Ride (DAR) program is currently administered by the Transportation staff and operated by Administrative Services Cooperative, Inc. (ASC).
On April 21, 2020, the City Council approved a three-year agreement with ASC to operate the City’s DAR Program (Exhibit No. 1; “Agreement”), for a not-to-exceed contract sum of $500,000 per year. The Agreement covers the period of July 1, 2020, through June 30, 2023, and provides for up to two (2) optional one-year contract extensions. On September 1, 2020, the City Council approved Amendment No. 1 to the Agreement (Exhibit No. 2; “Amendment No. 1”), extending the DAR program’s offerings as part of the City’s response to the COVID-19 pandemic. On June 21, 2022, the City Council approved Amendment No. 2 to the Agreement (Exhibit No. 3; “Amendment No. 2”), expanding the DAR service to remove restrictions within the defined area outside City boundaries.
As the initial term of the Agreement is set to expire on June 30, 2023, staff now requests City Council approval of Amendment No. 3 to the Agreement (Exhibit No. 4; “Proposed Amendment No. 3”), exercising the City’s first of two (2) one-year options to extend the term of the Agreement for 12 months, through June 30, 2024, at the current rates, and adding $500,000 to the not-to-exceed Contract Sum (currently $1,500,000, to increase to $2,000,000) to fund the services for the one (1) year extension period.
II. RECOMMENDATION
Recommendation
Take the following actions:
1. APPROVE Amendment No. 3 to the Agreement for Contract Services with Administrative Services Cooperative, Inc. (Exhibit No. 4; “Proposed Amendment No. 3”); and
2. AUTHORIZE the Mayor to execute Proposed Amendment No. 3, upon approval as to form by the City Attorney.
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III. ALTERNATIVES
TAKE any other action the City Council deems appropriate.
IV. BACKGROUND
The City’s DAR program is currently administered by the City’s Transportation staff and operated by ASC. The program offers demand-responsive taxi services to eligible residents in need of curb-to-curb transportation.
On April 21, 2020, the City Council approved the Agreement with ASC to operate the City’s DAR Program for a not-to-exceed Contract Sum of $1,500,000 ($500,000 per year). The Agreement covers the initial three-year term of July 1, 2020, through June 30, 2023, and provides City with the option to extend the term for up to two (2) one-year extension periods.
At the direction of the City Council, staff has continued to work with ASC to improve the DAR program and expand its scope of services. To this end, on September 1, 2020, the City Council approved Amendment No. 1, extending the DAR program’s offerings to residents of all ages as part of the City’s response to the COVID-19 pandemic. To further accommodate program participants, on June 21, 2022, the City Council approved Amendment No. 2, expanding the DAR service by removing all travel restrictions within the defined area outside of City boundaries shown in the DAR Service Map in Exhibit A-1 of the Agreement.
As the initial term of the Agreement is set to expire on June 30, 2023, staff now requests City Council approval of the Proposed Amendment No. 3 to: (i) exercise the City’s first one-year option to extend the term of the Agreement, thereby extending it through June 30, 2024, at the current rates of compensation; and (ii) add $500,000 to the Contract Sum, thereby increasing it from $1,500,000 to $2,000,000, to fund the services for the one-year extension period.
V. FISCAL IMPACT
There is no fiscal impact at this time. Should the City Council approve the recommendation, funds for the one (1) year extension period in the amount of $500,000 will be included in the FY 2023-2024 proposed budget, Proposition A account no. 218-90-940-179-6004.
VI. EXHIBITS
1. Agreement (pages 4-35).
2. Amendment No. 1 (pages 36-50).
3. Amendment No. 2 (pages 51-55).
4. Proposed Amendment No. 3 (pages 56-61).
Prepared by: Aurelia Mascorro, Transportation Coordinator II