Agenda #: 5.6
Meeting Date: June 20, 2023
TO: Honorable Mayor and Members of the City Council
FROM: Daniel Fox, City Manager
TITLE: SIXTH AMENDMENT TO THE CONTRACTOR SERVICES
AGREEMENT WITH NETWORK PARATRANSIT SYSTEMS FOR
DIAMOND RIDE PROGRAM SENIOR TRANSPORTATION SERVICES
THROUGH JUNE 30, 2024.
STRATEGIC
GOAL: Safe, Sustainable & Healthy Community
RECOMMENDATION:
Approve, and authorize the City Manager to sign, the Sixth Amendment to the Contractor Services Agreement with Network Paratransit Systems (NPS) to provide Diamond Ride Program senior transportation services through June 30, 2024.
FINANCIAL IMPACT:
Sufficient funds are included in the City Council adopted FY 2023-2024 operating budget to cover the cost of Diamond Ride Program senior transportation services in the amount of $350,000, which is funded exclusively through Proposition A Local Return Funds.
BACKGROUND:
The City’s Diamond Ride (or “dial-a-cab”) program was originally established in April 1995 to provide supplemental transportation for residents 60 years and older (“seniors”) and disabled adults 18 years and older. The program has been modified over the years to improve service and ensure fiscal sustainability, with the most recent program modifications going into effect in December 2014.
The Diamond Ride program currently has approximately 1,000 active cardholders and operates from 7am-8pm daily. Riders can use 30 one-way or 15 round trips per month.
The City’s existing service boundaries include:
• Service Area 1 ($0.50): Trips to/from any destination within Diamond Bar city limits.
• Service Area 2 ($1.50): Trips to/from medical facilities approximately five miles beyond Diamond Bar city limits, and also includes the St. Jude Hospital Medical Campus in Fullerton and Pomona Valley Hospital Medical Campus. • Trips extending beyond the established service area boundaries are subject to a $2.88 per mile cab fare in addition to the regular Diamond Ride fare for the specified trip (known as a “cab conversion”).
• Holiday Ride trips: Free trips to commercial businesses during the holiday season.
DISCUSSION:
The City Council entered into a three-year Agreement with American Cab to provide senior transportation services effective July 1, 2015 through June 30, 2018, with the option, at the City’s sole discretion, to award two annual extensions up to and including June 30, 2020. The Original Agreement also provides that upon mutual agreement and upon successful demonstration of exemplary contract performance, the parties may extend the Agreement beyond the two annual extensions. The proposed Sixth Amendment extends the Term one additional year through June 30, 2024.
National Paratransit Systems (NPS) assumed the contract from the City’s long-term provider American Cab in 2018. NPS, which operates buses and cabs under the Bell Cab and Yellow Cab subsidiaries, subsequently acquired the vehicles, contract drivers, and dispatch center previously owned and operated by the previous operator. Staff continues to monitor contractor performance, and has determined that NPS is meeting standards established by the agreement including on time performance pickups and program costs.
During the previous five years, program costs have ranged from approximately $140,379 to $310,435 annually prior to the COVID-19 pandemic. Contract pricing under NPS has remained within Council approved appropriations of $350,000 annually.
During the last two years, ridership dropped to approximately forty percent of normal ridership levels to an estimated 6,000 trips at the low point, with current ridership levels estimated at 7,000 for FY2022-23 and increasing next year. Cost estimates for FY 2022-23 are well below the annual program authorization of $350,000 as outlined in the chart below.
Diamond Ride Monthly Costs Monthly Average Annual Total FY2022-23 – Est. through April* $15,368.51 $185,000.00
FY2021-22 $13,695.67 $164,348.05
FY2020-21 $11,698.24 $140,378.89
FY2019-20 $16,814.35 $201,773.23
FY2018-19 $23,066.97 $276,803.64
FY2017-18 $25,869.55 $310,434.65
FY2016-17 $25,385.27 $304,623.20
FY2015-16 $24,799.26 $297,591.09
FY2014-15 $36,996.33 $443,955.98
FY2013-14 $47,328.43 $567,940.12
*Costs based on first ten months of the fiscal year.
The Consumer Price Index (CPI) for all indices including those used by the City have increased over the last year. For the upcoming contract year, NPS has requested bringing the flag drop to $3.00 per trip, and per mile rates to $3.15 per mile.
Additionally, the extension also maintains the $2,500 administrative surcharge, which is necessitated by the continuation of safety and sanitizing procedures. The rates proposed by NPS represent an increase of approximately 8% and are within budgetary appropriations and in line with those in the industry.
City staff will continue to monitor program performance and funding to ensure Diamond Ride operates within the Council appropriated funding allocation. Ridership has increased slightly from the FY2020-2021 lows, with any unused Proposition A funds to be be reallocated to other eligible City related needs.
Based on current performance, it is recommended that the City Council grant an additional one-year extension to the Agreement through June 30, 2024 with the proposed rate adjustments. It is anticipated with the proposed rate increases that total program costs will be between $200,000 and $250,000.
LEGAL REVIEW:
The City Attorney has approved the Sixth Amendment to the Contractor Services Agreement as to form.
PREPARED BY:
REVIEWED BY:
Attachments:
1. 5.6.a Sixth Amendment - NPS