Report to Mayor and City Council
Tuesday, September 17, 2024
Consent
SUBJECT:
Title
CONSIDER APPROVAL OF AMENDMENT NO. 1 TO EXTEND THE CONTRACT SERVICES AGREEMENT WITH LONG BEACH PUBLIC TRANSPORTATION COMPANY FOR FIXED-ROUTE BUS SERVICES BY THREE ADDITIONAL MONTHS (CITY COUNCIL)
Body
I. SUMMARY
On September 27, 2021, Long Beach Transit entered into a three-year agreement with the City to operate three new bus routes. As ongoing negotiations to extend the agreement are unlikely to conclude in time, staff is seeking approval of Amendment No. 1 to extend the term by three additional months. Should the City Council approve the recommendation, a subsequent amendment to effectuate a longer extension and new contract rates will be finalized and presented for approval within this three-month window.
II. RECOMMENDATION
Recommendation
1. WAIVE bidding requirements in accordance with Carson Municipal Code Section 2611(i)(7); and
2. APPROVE proposed Amendment No. 1 to the Contract Services Agreement between the City of Carson and Long Beach Public Transportation Company, extending the term by three additional months (Exhibit No. 1; “Amendment No. 1”); and
3. AUTHORIZE the Mayor to execute Amendment No. 1, following approval as to form by the City Attorney.
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III. ALTERNATIVES
TAKE another action the City Council deems appropriate.
IV. BACKGROUND
The City provides fixed-route bus services to its residents and commuters from neighboring cities. On September 27, 2021, Long Beach Transit (“LBT”) entered into a three-year agreement with the City to operate three new bus routes (Exhibit No. 2). Routes 2, 4, and 8 operate every 40 minutes between 5:03 am and 7:20 pm during weekdays, and from 10:18 am and 5:38 pm on Saturdays.
Route 2 serves areas between CSUDH, SouthBay Pavilion, City Hall, and Carson High School. Its rising ridership can be attributed to a growing number of students using public transit.
Route 4 serves the entirety of Carson St. and connects riders with the Metro A (Blue) line light rail station on Santa Fe Ave. and Del Amo Blvd. Ridership on this route is consistently higher than Routes 2 and 8 combined.
Route 8 serves the entirety of 223rd St. and connects riders with Metro’s A (Blue) line light rail station on Pacific Pl. and Wardlow Rd. As the area’s very first transit connection between west Carson and Long Beach, ridership on this route has also steadily increased over time.
As shown in the graph above, LBT is twice as effective across its routes in contrast the City’s former contractor, MV Transportation. This can be attributed to the removal of certain neighborhood-serving routes, as well as the introduction of bidirectional service on the City’s major arterials.
To continue to provide LBT service to residents and commuters, staff engaged LBT in April 2024 to discuss the extension of the initial three-year term. As contract rates were also up for negotiation, discussions are still ongoing and are unlikely to conclude by September 27, 2024.
To this end, staff is seeking approval of Amendment No. 1 to extend the term by approximately three additional months, through December 31, 2024, at the existing rates of compensation (the current rate is $1,770,000 per contract year; the rate for the extension period per the proposed Amendment No. 1 would be $442,500) while preserving the contract’s indemnification and insurance protections and the two subsequent one-year options to extend the term of the contract upon mutual agreement of the parties, except that the first of the two option periods, if exercised, would now commence on January 1, 2025, rather than September 27, 2024.
Should the City Council approve the recommendation, a subsequent amendment to effectuate a longer extension (e.g., one year, per the first option available under the contract) and the rates for such extension period will be presented for Council approval within this three-month window.
The proposed contract extension is exempt from the competitive bidding requirements of the City’s purchasing ordinance per Carson Municipal Code Section 2611(i)(7).
V. FISCAL IMPACT
There is no fiscal impact at this time. Should the City Council approve the recommendation, funds to increase to contract sum for the three-month extension period in the amount of $442,500 are budgeted in the FY 2024-25 Proposition A and C account nos. 218-90-940-180-6010 and 219-90-940-180-6010 respectively.
VI. EXHIBITS
1. Amendment No. 1 (pgs. 4-8).
2. Existing Contract (pgs 9-33).
Prepared by: Michael Whittiker Jr., Director of Community Services, Recreation, and Park Maintenance; Jason Jo, Transportation Program Manager