Camarillo City Council
AGENDA REPORT
Date: May 14, 2025
To: Honorable Mayor and City Councilmembers
From: Greg Ramirez, City Manager
Submitted by: Dave Klotzle, Public Works Director
Subject: Transit Operation and Maintenance Services Agreement No. 2024- 28, Contingency Request
BACKGROUND
On May 22, 2024, City Council approved a four-year agreement with RTW Management, Inc. (RTW) for Transit Operations and Maintenance Services (Agreement) for a total amount not to exceed (NTE) $11,866,219 effective July 1, 2024. The Agreement also includes the options for up to three (3) one-year renewal periods beyond the original four- year term.
DISCUSSION
Based on historical trends, staff anticipated the FY 2024/25 revenue hours would be approximately 21,000 when originally soliciting the City’s request for proposals and ultimate award of contract. Ridership increases and implementation of the City’s new RideCo trip scheduling and dispatching software program has resulted in higher than anticipated revenue hours. The projected revenue hours for FY 24/25 is now anticipated to be 27,546 (for both fixed route and DAR services) which represents a 31% increase compared to the original estimate of 21,000 revenue hours; but a 25.6% increase compared to actual revenue hours of 21,931 for FY 2023/24.
The increase in revenue hours is primarily attributed to demand in DAR services, which is projected to have a 20% increase in ridership compared to FY 23/24, and a 33% increase in revenue hours. Since implementing the new RideCo software scheduling service, the DAR program has seen a significant increase in demand. For example, College Rides, which can include passengers with a college ID traveling to/from California State University Channel Islands (CSUCI), as well as trips within the City, have increased 1,061% for the time period of July 1, 2024, through March 31, 2025, compared to the same time period in FY 2023/24 (8,194 current year-to-date vs. 706). Of the 8,194 College Rides, 5,651 were traveling to CSUCI and returning to Camarillo from CSUCI.
Transit Operations and Maintenance Services Agmt. No 2024-28 May 14, 2025
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Due to the increase in ridership and revenue hours, staff is requesting authorization to add a $1,100,000 contingency (approximately 9% of the NTE amount) to the original Agreement amount for a total authorized expenditure of $12,966,219 through the term of the Agreement ending June 30, 2028. If the total NTE of $11,866,219 is exceeded during the term of the Agreement, the City Manager would be authorized to utilize the contingency to increase the NTE amount up to $12,966,219 to cover the total cost of services.
FISCAL IMPACT
There is no fiscal impact for the contingency authorization. If the contingency is utilized, costs will be charged to the appropriate accounts and funding would approximately be a combination of up to $715,000 from Federal Transit Administration (FTA) grant and $385,000 from TDA Article 8c.
CEQA DETERMINATIONS
Staff has determined, in accordance with Section 15061(b)(3) of the California Environmental Quality Act (CEQA) Guidelines that adding a contingency of $1.1 million to the existing Transit Operations and Maintenance Services Agreement is not subject to CEQA review because it can be seen with certainty that there is no possibility that the contingency may have a significant effect on the environment. The activity is a continuation of services and is designed to reduce the amount of single-occupancy vehicle trips that the public may otherwise take.
RECOMMENDATION
1. Find the contingency of $1.1 million for the Agreement for Transit Operations and Maintenance Services exempt from review under the California Environmental Quality Act (CEQA) pursuant to Section 15061(b)(3); and
2. Authorize the City Manager to execute future amendments up to the authorized contingency amount of $1,100,000 for Agreement No. 2024-28 with RTW Management, Inc. for transit operations and maintenance services for a four-year term for an amount not to exceed $12,966,219.
ATTACHMENTS
None
REFERENCE MATERIALS – AVAILABLE FOR REVIEW AT CITY HALL None