14-I
TO: Honorable Mayor and Members of the City Council
ATTENTION: Jeffrey L. Stewart, City Manager
FROM: P.J. Mellana, Director of Parks and Recreation
SUBJECT: Consideration and possible action to authorize the City Manager to approve the assignment of Agreement File No. 521.1 with Empire Transportation, Inc. to Pro Park, LLC., in a form approved by the City Attorney, for Fixed Route and Dial-A-Ride Transportation Services.
DATE: August 28, 2023
EXECUTIVE SUMMARY
This action would allow the City Manager to approve the assignment of the current Agreement with Empire Transportation, Inc. (Empire) to Pro Park, LLC. On Thursday, August 17, 2023, staff was notified by Bertha Aguirre, Empire President and COO, that the company is being sold to Pro Park, LLC. Mrs. Aguirre and other management staff are to remain on with the new company and remain assigned solely to Empire’s current operations. Operationally, nothing is expected to change. The sale is expected to finalize on August 31, 2023.
RECOMMENDATION TO CITY COUNCIL
1) Authorize the City Manager to approve the Assignment of Agreement File No. 521.1; or
2) Alternatively, discuss and take other action related to this item.
FISCAL IMPACT
Assignment of Agreement File No. 521.1 will have no change to the cost of the current Agreement or contract. For reference, the Fiscal Impact for the agreement is as follows:
The costs for the first four years of the contract are $682,500; $709,800; $738,192; and $767,719, respectively, for a total of $2,898,211 under the initial four-year term. If the two 2-year options are exercised, the rates effective for any option year will be increased over the previous year by the CPI adjustment, but not greater than five percent (5%).
1 Staff Report – Assign AFN 521.1 to Pro Park, LLC
August 28, 2023
FISCAL IMPACT – Continued
The City’s transportation services are funded from Proposition A half-cent sales tax and the City has an allocated a budget of $682,500 for Fiscal Year 2020-2021. Proposition A funds are restricted and can only be used for transportation services and related maintenance and improvements in Bellflower. Proposition A funds are administered by the Los Angeles County Metropolitan Transportation Authority (LACMTA).
ATTACHMENT
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