CC - Item 5E - Adoption of Resolution 2023-12 Amending the Fiscal Year 2022-23 Budget and Approve First Amendment to Transit Services AgreementROSEMEAD CITY COUNCIL
STAFF REPORT
TO: THE HONORABLE MAYOR AND CITY COUNCIL
FROM: BEN KIM, CITY MANAGER
DATE: FEBRUARY 14, 2023
SUBJECT: ADOPTION OF RESOLUTION NO. 2023-12 AMENDING THE FISCAL
YEAR 2022-23 BUDGET AND APPROVE THE FIRST AMENDMENT TO
THE TRANSIT SERVICES AGREEMENT
SUMMARY
On February 25, 2020, the City Council approved a three-year agreement with First Transit, Inc.
(First Transit), to provide management, operation, and maintenance of the City's transit services.
The existing agreement is set to expire on March 31, 2023. In accordance with the original
agreement, the City may extend the term of the agreement for up to two additional years. Staff is
recommending that the agreement be amended to extend the contract term for an additional two
years. If approved, the total annual compensation for the first extension year (April 1, 2023 -
March 31, 2024) would be in the amount of $1,176,098 for operations and an estimated
$135,002 for fuel, and the second extension year (April 1, 2024 — March 31, 2025) would be in
the amount of $1,276,054 and an estimated $141,752 for fuel.
BACKGROUND
The City's transit services include the Dial -A -Ride and Rosemead Explorer Fixed Route
programs. The programs utilize up to five city -owned propane fueled buses during daily peak
service. Since the inception of the City transit services, contractors have been utilized to provide
full-service management and operations of the City's transit services.
On November 25, 2019, the City released a Request for Proposal (RFP) for transit services.
Following a comprehensive RFP process, staff recommended the City award a contract for City
transit services to First Transit. On February 25, 2020, the City Council approved and entered
into an agreement with First Transit for transportation services for a base period of three years
with the option to extend the agreement for an additional two years.
First Transit has provided transit services to the Rosemead community since April 2020.
Throughout the base term of the agreement, First Transit has met the expectations of the City by
AGENDA ITEM 5.E
City Council Meeting
February 14, 2023
Page 2 of 3
communicating effectively, providing prompt responses to resident concerns, and remaining
adaptable to changes in service throughout the COVID-19 pandemic. First Transit continues to
operate out of a local maintenance and office facility in El Monte which allows for the firm to
leverage El Monte's call center, dispatch, and road supervisor staff to enable cost sharing, reduce
operator hours and preserve the useful life of City -owned vehicles.
First Transit is requesting an approximately 15% increase for the first year of the extension and
8.5% increase for the second year. The cost increases are attributable to increased maintenance
costs including labor and parts, and increases in wages for drivers and support staff. Currently,
there is a nationwide shortage of bus drivers requiring transit agencies to offer increased
competitive wages and hiring bonuses. The proposed annual cost for operations in the first year
(April 1, 2023 - March 31, 2024) is in the amount of $1,176,098 and the second year (April 1,
2024 — March 31, 2025) is in the amount of $1,276,054. In addition, estimated fuel costs for the
first year is in the amount of $135,002, and $141,752 for the second year. Fuel costs are
estimates and actual costs will be invoiced monthly, based on fuel prices at the time of service.
To validate the cost increase, staff conducted outreach to surrounding cities with comparable
transit services to determine the market value cost for recent transit service contract changes. The
results of the outreach concluded that the requested total annual compensation amounts for the
two extension years are reasonable and within a cost increase range (10-25%) that has been
experienced by other municipalities for both contract extensions and new agreements as shown
in Table 1.
STAFF RECOMMENDATION
It is recommended that the City Council:
1. Authorize the City Manager to amend the agreement with First Transit to extend the
contract for an additional two (2) years. The annual compensation for the first extension
year (April 1, 2023 - March 31, 2024) would be in the amount of $1,176,098 for
operations plus $135,002 for estimated fuel costs for an annual total of $1,311,100, and
City
FY 21-22
Annual Contract
I FY 22-23 Annual
Increase
Percent
Change Due To
Contract Amount
Change
Amount
_
Arcadia
$ 1,842,715.00
$ 2,260,859.00
$
418,144.00
22.7%
New Agreement
(RFP Process)
Baldwin
$ 1,551,600.00
$ 1,738,320.00
$
186,720.00
12.0%
Contract Extension
Par
---r--
--
Temple
$ 399,057.00
1 $ 446,057.00
$
47,000.00
11.8%
Contract Extension
City
EI Monte
$ 1,726,110.00
$ 2,091,252.00 1
$
365,142.00
21.2%
New Agreement
(RFP Process)
STAFF RECOMMENDATION
It is recommended that the City Council:
1. Authorize the City Manager to amend the agreement with First Transit to extend the
contract for an additional two (2) years. The annual compensation for the first extension
year (April 1, 2023 - March 31, 2024) would be in the amount of $1,176,098 for
operations plus $135,002 for estimated fuel costs for an annual total of $1,311,100, and
City Council Meeting
February 14, 2023
Page 3 of 3
the second extension year (April 1, 2024 — March 31, 2025) would be in the amount of
$1,276,054 plus $141,752 for estimated fuel costs for an annual total of $1,417,806.
2. Adopt Resolution No. 2023-12 amending the City's Fiscal Year 2022-23 Operating
Budget to appropriate additional funds in the amount of $220,000 from Proposition C to
increase funding for the First Transit agreement extension, for a total annual transit
services budget of $1,320,000.
FISCAL IMPACT
The Fiscal Year 2022-23 Operating Budget included a
amount of $1,100,000. An amendment to appropriate an
funding is necessary to sufficiently cover the costs of the
services program cost of $1,320,000.
STRATEGIC PLAN IMPACT
None.
ENVIRONMENTAL REVIEW
transit services appropriation in the
additional $220,000 in Proposition C
program increases for a total transit
This item is not defined as a project under the California Environmental Quality Act (CEQA);
therefore, the proposed plan is not subject to CEQA.
PUBLIC NOTICE PROCESS
This item has been noticed through the regular agenda notification process.
Prepared by:
anielle Garcia
Public Works Fiscal and Project Manager
Submitted by:
7rchxn�e
Michael Chung, P.E.
Director of Public Works
Attachment A: First Transit Cost Proposal
Attachment B: Amendment No. 1
Attachment C: Resolution No. 2023-12
Attachment A
First Transit Cost Proposal
FIRST TRANSIT, INC. REQUEST FOR EXTENSION COST PROPOSAL
CITY OF ROSEMEAD - TRANSIT SERVICES
TOTAL PROPOSED ANNUAL COST
This table auto -fills from Hourly and Fixed Cost Tables. Do not overwrite formulas.
COST FORMULA
Year One
12 Months
Year Two 112 1111100s]
1. Cost per VRH
$36.05
$41.17
2. Monthly Fixed Cost
$51,878.59
$53,657.26
Projected Annual VRH
15,355
15,355
3. Annual Hourly Costs
$553,555
$632,167
4. Annual Fixed Costs
$622,543
$643,887
TOTAL PROPOSED ANNUAL
COST 3+4)
$1,176,098
$1,276,054
43
44
45
46
47
48
49
Year 1 Year 2
PROPOSED TOTAL VEHICLE REVENUE HOUR COSTS
TOTAL VRH COST BY
CATEGORY
Year One
Year Two
Driver Wages
392,850
462,664
Driver Fringe Benefits
94,422
100,417
Maintenance Parts
45,580
47,297
Maintenance Supplies
13,205
13,751
Outside Repairs
7,498
8,137
Other(specify)
-
-
TOTAL HOURLY COSTS
$553,555.05
$632,167.07
11 Page
H
ll
1:
1:
17
1:
11
U
11
1!
21
2'
2;
21
2,
2'
21
2'
21
2'
34
3'
1
3,
3,
3'
31
3
3'.
T
41
4
4
PROPOSED FIXED COSTS
ru..r.•a-..r .mrn M tx tNl( 1.n.f. by 1a m
TOTAL FIXED COST BY
CATEGORY
YW Om
YOW YM
pmpd Marmgel Salary
18.080
18,512
P"W Manager Fnkge
3,502
3.719
Maotaems Mgr Salary
54,000
55.620
Mort. Mgr Fringe
18,904
17,515
Operation Super Selmy
45,646
46,878
ppenabw 5lpe T-mp
17,806
18,410
Dispatch Stag Wages
43412
44.646
Dispatch Staff Forge
14,664
15,553
Meirftr Sleff Wages
55,970
57,481
himrtermrloe SWff Fmlge
21,437
22,421
Sd*dWer/C80-Taker Wages
43,472
44,648
SdWdmatlCaO-Taker Forge
14,472
15,142
Ad= $ippon Wages
3,043
3,125
Ad11k1 SWW Forge
1,0m
1,130
Fknrlg7Tmnng
754
1,156
Sakay
2,310
2,367
Umbms
3,800
3,895
Na Reuaue Vehicles
204
209
Fac*4 Lessa42mt Cost
15,174
15,553
3amwa
5,533
5,671
Teleph-
10,416
10,676
ubwB
2,416
2.476
Once Srppties
17,840
18,296
Aomul6g
2,366 1
2,425
INSURANCE'.
Gerlaal Uabdny
6,487
6,643
A *N nblle Uabdky
64,872
66,427
CdIm1a1o1VComprehens
12,974
13,285
Waken Cornpeltsaten
35,580
37,003
CORP" Hach
4,946
4,946
Canptersoawam
6275
6,432
OnBeard Camera Cosh
Radios
5,013
5,013
i
1 Start Up Costs
. Om tnd
43,341
45.938
Mamgmwt Fedt'writ
28,726
30,625
TOTAL FIXED COSTS
$622.543
$643,887
Lune, uamrg -I IM-
pmlft this pmRbn. u9Rty a ser0m.l
FICTIMATFO ANN11A1 FUEL COST
21 Page
Yew Oro Year lvro
PTgectod Total Vehicle was
200,995 260.995
EsWnS[ed Alnlal Fuel Cos[
$135,092 5141 752
Assuned propane CosUGal
S 4.93 S 4 23
A.ssrned COWGel Gasohm
$ 425 S 446
21 Page
Attachment B
Amendment No. 1
FIRST AMENDMENT
TO PROFESSIONAL SERVICES AGREEMENT FOR
MANAGEMENT AND OPERATION OF ROSEMEAD
TRANSIT SYSTEM
(FIRST TRANSIT, INC.)
This FIRST AMENDMENT ("Amendment') is made and entered into this _day
of 20_ ("Effective Date"), by and between the City of Rosemead,
a municipal organization, organized under the laws of the State of California with its
principal place of business at 8838 East Valley Blvd., Rosemead, California 91770 ("City')
and First Transit, Inc., with its principal place of business at 600 Vine Street, Suite 1400,
Cincinnati, Ohio 45202 ("Contractor"). City and Contractor are sometimes individually
referred to herein as `Party' and collectively as "Parties."
WHEREAS, City and Contractor entered into an agreement on March 31, 2020, for
the Management and Operation of Rosemead Transit System (the "Agreement'); and
WHEREAS, this Agreement is set to expire on March 31. 2023 ; and
WHEREAS, the City and the Contractor may mutually agree to extend the term of
this Agreement for approximately two years.
NOW, THEREFORE, the Parties agree as follows:
SECTION 1. Section 3 " Terms " shall be amended to read:
3.1.2 Term. The term of this Agreement shall be extended for an additional
two year term from March 31, 2023 to March 31, 2025, at the sole and
absolute discretion of the City, unless earlier terminated as provided herein.
Consultant shall complete the Services within the term of this Agreement
and shall meet any other established schedules and deadlines.
3.3.1 Compensation: Consultant shall receive compensation, including
authorized reimbursements, for all Services rendered under this Agreement
at the rates set forth in the Letter of Extension dated February 8, 2023,
attached hereto and incorporated herein by reference. The total annual
compensation shall not exceed the following amounts plus documents cost
of fuel used for Rosemead Transit vehicles:
Extension Year One: One Million One Hundred Seventy -Six Thousand
Ninety -Eight Dollars ($1,176,098) plus One Hundred Thirty -Five Thousand
Two Dollars ($135,002) for a total annual cost of One Million Three Hundred
Eleven Thousand One Hundred Dollars ($1,311,100.00).
Extension Year Two: One Million Two Hundred Seventy -Six Thousand
Fifty -Four Dollars ($1,276,054) plus One Hundred Forty -One Thousand
Seven Hundred Fifty -Two Dollars ($141,752) for a total annual cost of One
Million Four Hundred Seventeen Thousand Eight Hundred Six Dollars
($1,417,806.00).
Extra Work may be authorized in writing, as described below, and will be
compensated at the rates and manner set forth in this agreement.
SECTION 2. All other terms, conditions, and provisions of the original agreement not in
conflict with this addendum, shall remain in full force and effect.
SECTION 3. The City Clerk shall certify to the adoption of this Addendum and hereafter
the same shall be in full force and effect.
IN WITNESS WHEREOF, City and Contractor have caused this Agreement to be executed
by their duly authorized representatives as of the day and year first above written.
(Signatures on next Page)
CITY OF ROSEMEAD
Ben Kim, City Manager Date
Attest:
Ericka Hernandez, City Clerk Date
Approved as to Form:
Rachel Richman Date
FIRST TRANSIT, INC.
Zu
Name:
Title:
[If Corporation, TWO
SIGNATURES, President OR Vice
President AND Secretary, AND
CORPORATE SEAL OF
CONTRACTOR REQUIRED]
M
Name:
City Attorney Title:
Attachment C
Resolution No. 2023-12
RESOLUTION NO. 2023-12
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
ROSEMEAD, CALIFORNIA, AMENDING THE FISCAL YEAR 2022-23
BUDGET AND AUTHORIZING A SUPPLEMENTAL APPROPRIATION
FROM PROPOSITION C FUND RESERVES IN THE AMOUNT OF
$220,000 TO FUND THE CONTRACT EXTENSION WITH FIRST
TRANSIT, INC.
WHEREAS, the City Council adopted the Fiscal Year 2022-23 Operating and Capital
Improvement Program budgets on June 14, 2022; and
WHEREAS, the Fiscal Year 2022-23 budget did not include sufficient funding for
proposed contract extension costs; and
WHEREAS, on February 6, 2023, the City received a request for an extension from the
existing transit service provider for a total annual contract in the amount of $1,176,098 plus
$135,002 for estimated fuel costs; and
WHEREAS, sufficient funding is not available in the City's adopted Fiscal Year 2022-23
budget thus requiring a supplemental appropriation in the amount of $220,000 to fund the first
year of the contract extension; and
WHEREAS, amendments must periodically be made to the budget to conform to changed
circumstances following the adoption of the budget; and
WHEREAS, the revised appropriation constitutes an update to the Fiscal Year 2022-23
budget approved pursuant to Resolution No. 2022-38.
THE ROSEMEAD CITY COUNCIL HEREBY RESOLVES AS FOLLOWS:
SECTION 1: The City Council hereby approves a supplemental appropriation in the
amount of Two Hundred Twenty Thousand Dollars ($220,000) from the Proposition C fund
balance in Fund 220 to fund the total proposed cost of the first year for the transit service contract
extension.
SECTION 2: The City Clerk shall certify the adoption of this Resolution.
[ Signatures on next page
PASSED, APPROVED AND ADOPTED this 14`h day of February, 2023.
Sean Dang, Mayor
APPROVED AS TO FORM: ATTEST:
Rachel H. Richman, City Attorney
STATE OF CALIFORNIA )
COUNTY OF LOS ANGELES) §
CITY OF ROSEMEAD )
Ericka Hernandez, City Clerk
CERTIFICATION
I, Ericka Hernandez, City Clerk of the City Council of the City of Rosemead, California,
do hereby certify that the foregoing City Council Resolution No. 2023-12 was duly adopted
by the City Council of the City of Rosemead, California, at a regular meeting thereof held on
the 14th day of February, 2023, by the following vote, to wit:
AYES:
NOES:
ABSENT:
ABSTAIN:
Ericka Hernandez, City Clerk