City Council

14. APPROVE CONTRACT AMENDMENT: CONTRACT OPERATIONS OF ALHAMBRA\nCOMMUNITY TRANSIT AND SENIOR RIDE – F2M19-34, C2M19-38(B), M2M24-202\nIn 2019, First Transit was awarded a contract to provide contract transit operations for the\nCity of Alhambra Community Transit (ACT) and Alhambra Senior Ride programs. This\ncontract expired on June 30, 2024. On February 26, 2024, staff received authorization to\ndistribute a Request for Proposals for a new five-year contract for transit operations. One\noperator (First Transit) submitted a proposal for the City’s consideration. During this same\nperiod, the City was discussing findings from a ridership study to better evaluate how the\nCity’s local transit options could be improved. The Council directed additional study be\nundertaken. A new study, which shall include route and stop location considerations, is\nexpected to be completed by March 2025. In the interim, while the City determines its next\nsteps, First Transit agreed to extend their contract pricing through December 31, 2024 at\na cost of $1,019,175.00, the same pricing as that stipulated under the 2019 contract. The\nACT study to be completed in March 2025 and Council direction thereof could potentially\nimpact future scope of work (and costs) for transit services, particularly if changes to route\nand location stops are enacted. As a result, staff discussed with First Transit the option to\nextend the contract beyond December 31, 2024 and through June 30, 2025. First Transit\nis agreeable to an extension through June 30, 3025; however, the company will need to\nincrease its rate for the second six months of the contract amendment. The costs from\nJanuary to June 2025 are an additional $1,489,910.50. The escalation is due to labor,\nemployee benefits and insurance costs.\nRecommended Action: City Council approve a contract amendment with First\nTransit Inc., subject to final language approved by the City Manager and City Attorney, to\nextend the existing contract to June 30, 2025, for transit operation services for the\nAlhambra Community Transit and Senior Ride in the amount of $2,509,085.50\n($1,019,175.00 from July 1, 2024 through December 31, 2024 and $1,489,910.50 from\nJanuary 1, 2025 through June 30, 2025), authorize the City Manager to execute the\namendment, and direct staff to take the steps necessary to finalize Council’s action.\n(M2M24-202)