TO: Honorable Mayor and Members of the City Council ATTENTION: Ryan Smoot, City Manager
FROM: P.J. Mellana, Director of Parks and Recreation SUBJECT:Consideration and possible action to approve a notice of termination of Agreement File No. 122.3 with Long Beach Transit.
DATE: September 14, 2026
EXECUTIVE SUMMARY
Staff is seeking City Council approval of a proposed notice of termination of Agreement File No. 122.3 with Long Beach Transit (LBT), which governs LBT transit service within Bellflower and the related funding arrangement. If approved, the notice would provide 90 days for the parties to negotiate a modernized successor agreement while maintaining continuity of transit service during that period.
The City’s objective is to continue its longstanding partnership with LBT under an updated agreement that more clearly addresses funding responsibilities, communication regarding service changes, performance expectations, and the information needed for responsible financial planning.
RECOMMENDATION TO CITY COUNCIL
1) Approve the proposed notice of termination of Agreement File No. 122.3 with Long Beach Transit and authorize its transmittal; or
2) Alternatively, discuss and take other action related to this item.
FISCAL IMPACT
There is no immediate fiscal impact associated with approving and transmitting the termination notice.
Under the current funding arrangement, the City’s annual contribution for LBT service increased from $30,188 in Fiscal Year 2023 to $103,497 in Fiscal Year 2027, an increase of approximately 243 percent. The contribution is funded through the City’s Proposition A Local Return funds. The contract’s share of the City’s annual Proposition A Local Return revenue nearly tripled, from 1.5% in Fiscal Year 2023 to 4.2% in Fiscal Year 2026, while the City’s annual Proposition A allocation grew by only 0.5%.
Any successor agreement may change the City’s financial obligations and will be brought back to the City Council for separate review and approval.
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1 Staff Report – Agreement File No. 122.3 with Long Beach Transit September 14, 2026
DISCUSSION
The City and LBT have maintained a longstanding partnership for transit service within Bellflower under Agreement File No. 122.3. The agreement dates to 1985 and was originally approved by the City Council by resolution.
Staff recently reviewed the agreement and the funding arrangement supporting LBT service within the City. The review identified the need to modernize the agreement to better address current service conditions, funding responsibilities, communication regarding service changes, performance expectations, and financial planning.
The need for an updated framework has become more significant as the City's contribution has increased. The City’s annual contributions for LBT service are summarized below:
Fiscal Year Annual Contribution Annual Increase
FY2023 $30,188 —
FY2024 $39,678 31.4%
FY2025 $63,351 59.7%
FY2026 $86,657 36.8%
FY2027 $103,497 19.4%
From Fiscal Year 2023 to Fiscal Year 2027, the City’s annual contribution increased by $73,309, or approximately 243 percent. The contribution is funded through the City’s Proposition A Local Return funds. The existing agreement provides limited structure for addressing changes in the City's financial obligation and related service expectations.
Agreement File No. 122.3 permits either party to terminate the agreement upon 30 days' written notice. Rather than provide the minimum notice, the proposed notice provides 90 days to establish a reasonable period for the parties to negotiate updated terms while supporting continuity of service.
The proposed termination notice does not reflect an intent to discontinue the City's relationship with LBT. Instead, it establishes a defined timeline for the parties to work toward a modernized successor agreement. The proposed notice expressly communicates the City's desire to continue the partnership and invites LBT to begin negotiations promptly.
If approved, staff will transmit the notice to LBT and continue working with LBT during the 90-day notice period toward a successor agreement. Any successor agreement will be brought back to the City Council for separate consideration and approval.
ATTACHMENT
Notice of Termination (AFN No. 122.3)………………………………………………………………3 2 September 15, 2026
Kenneth A. McDonald
President & Chief Executive Officer
Long Beach Transit
4801 Airport Plaza Drive
Long Beach, CA 90815
Subject: Agreement File No. 122.3 - Notice of Termination and Invitation to Negotiate a Successor Agreement
Dear Mr. McDonald:
The City reviewed Agreement File No. 122.3 between the City and Long Beach Transit (LBT) including the funding methodology supporting LBT’s services within the City.
Bellflower values its longstanding partnership with LBT and the service provided to its residents. The current agreement, however, no longer reflects today's service levels, operating environment, or financial realities. Accordingly, the City is exercising its contractual right to terminate the existing agreement so that the parties may negotiate and execute a modernized successor agreement.
The information recently provided by LBT confirms that Bellflower's annual contribution increased from $30,188 in Fiscal Year 2023 to $86,657 in Fiscal Year 2026, an increase of approximately 187% in three years. During that same period, the contract’s share of the City’s annual Proposition A Local Return revenue nearly tripled, from 1.5% in Fiscal Year 2023 to 4.2% in Fiscal Year 2026, while the City’s annual Proposition A allocation grew by only 0.5%. While the City understands that transit service must evolve over time, the current funding structure is no longer sustainable under the existing agreement.
Additionally, the City recently received LBT's Fiscal Year 2027 invoice in the amount of $103,497, representing a further increase of approximately 19% over the prior year.
The City's review also identified the need for a new agreement that more clearly defines funding responsibilities, communication regarding service changes, performance expectations, and the information necessary to support responsible financial planning. As transit service continues to change, the City believes these elements should be addressed collaboratively through an updated agreement that reflects the interests of both agencies.
Pursuant to Paragraph 7 of Exhibit A to Agreement File No. 122.3, either party may terminate the agreement upon 30 days' written notice. The City gives that notice now.
Although only 30 days is required, the City is providing 90 days' notice to allow sufficient time for both agencies to negotiate a new agreement while ensuring continuity of service to Bellflower residents. Accordingly, unless superseded by a successor agreement executed by both parties, the agreement will terminate on November 8, 2026. The City expects any final invoice under the current agreement to include only services provided through the termination date.
The City's objective is not to end its partnership with Long Beach Transit. Rather, this notice establishes a clear timeline for both agencies to work together toward a new 3 agreement that provides a sustainable funding framework, clearly defined responsibilities, and a strong foundation for continued transit service in Bellflower.
To begin that process, I invite you to contact my office within the next two weeks so that our respective teams can schedule an initial meeting to establish a framework and timeline for negotiating a successor agreement. We are confident that a collaborative approach will position both agencies to reach a mutually beneficial agreement before the current agreement expires.
Thank you for your continued partnership and service to the Bellflower community. We look forward to working with you toward a mutually beneficial outcome for both organizations and the residents we collectively serve.
Sincerely,
Ryan Smoot
City Manager
cc: P.J. Mellana, Director of Parks and Recreation
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