Agenda #: 7.1
Meeting Date: May 6, 2025
TO: Honorable Mayor and Members of the City Council
FROM: Daniel Fox, City Manager
TITLE: SERVICES AGREEMENT WITH GOGO TECHNOLOGIES, INC. FOR DIAL-A-RIDE TRANSPORTATION SERVICES.
STRATEGIC
GOAL: Open, Engaged & Responsive Government
RECOMMENDATION:
A. Approve and authorize the City Manager to sign a Services Agreement with GoGo Technologies, Inc. for Dial-A-Ride transportation services through June 30, 2028; and
B. Approve updates to the Diamond Ride Program Rules and authorize the City Manager to make future modifications as necessary to address operational and programmatic needs.
FINANCIAL IMPACT:
No additional appropriation is needed for the remainder of FY 2024/25 to support the transition to a new service provider and ensure uninterrupted transportation service until June 30, 2025. The proposed FY 2025-2026 budget will include $550,000 for transportation services, pending adoption of the budget by City Council. The Diamond Ride program is funded exclusively by Proposition A Transit Tax, generated from a County-wide half-cent sales tax for public transportation, with 25% distributed to local agencies based on population.
BACKGROUND:
The City’s Dial-A-Ride Program (Diamond Ride) was established in April 1995 to provide residents ages 60 and older and residents with disabilities ages 18 and older with a non-primary subsidized transportation service. Since program inception, Diamond Ride has enhanced mobility and independence for residents, facilitating access to essential destinations and enriching their experience within the community. However, in an effort to maintain service quality and ensure fiscal sustainability, the program has
undergone various modifications, with the most recent significant changes implemented in December 2014.
As of April 2025, Diamond Ride operates as a taxi-based service and serves over 700 active cardholders, averaging nearly 1,000 one-way monthly trips. Operating daily from 7:00 a.m. to 8:00 p.m., including holidays, eligible participants can access up to 30 oneway or 15 round trips per month. The current Diamond Ride service areas include:
• Service Area 1 ($0.50 fare one-way) – Anywhere within Diamond Bar city limits. • Service Area 2 ($1.50 fare one-way) – Any medical facility beyond City limits bounded by:
o North: San Bernardino Freeway (I-10)
o East: Ramona Avenue
o South: Imperial Highway, Carbon Canyon Road/ Chino Hills Parkway o West: Harbor Boulevard/Azusa Avenue
Service Area 2 also includes the following eligible medical facilities:
o Pomona Valley Medical Center in Pomona, California.
o Providence St. Jude Medical Center in Fullerton, California. o Kaiser Permanente Baldwin Park Medical Center in Baldwin Park, California. • Conversion Trips – For trips extending beyond the established boundaries, referred to as “Conversion Trips,” standard Diamond Ride fares apply, in addition to a fee of $3.25 per mile to reach the destination after leaving the designated service area.
In 2015, the agreement for the taxi-based transportation service was awarded to American Cab Co., LLC (American Cab). Over the years, American Cab has undergone various name changes, with the most recent name change occurring in March 2024, in which OpCo Transit, Inc. (OpCo) was assigned the contractual obligations for Diamond Ride.
Since 2015, the popularity of Diamond Ride among eligible residents had grown significantly until the COVID-19 pandemic, which disrupted service levels and operational capacity. As OpCo strived to restore service to pre-pandemic conditions, challenges emerged with taxi-cab availability and driver shortages, adversely affecting service quality. City staff continuously receives concerns from Diamond Ride participants regarding late pickups, missed rides, and substandard customer service.
On February 24, 2025, OpCo informed the City of its intent to cease operations, citing rising business costs, particularly in insurance premiums, as the reason. However, to ensure uninterrupted service, OpCo has committed to providing taxi-based transportation services for Diamond Ride until the expiration of the current contract on June 30, 2025. It should be noted that before OpCo’s notification of its intent to cease operations, City staff had already issued a Request for Proposal (RFP) for Dial-A-Ride Transportation Services.
ANALYSIS:
Due to ongoing concerns about service quality, City staff recognized the need to evaluate the Diamond Ride Program to enhance service delivery and better meet residents' needs.
The City Manager's Office prepared a Request For Proposal (RFP) for Dial-A-Ride Transportation Services to solicit competitive proposals, ensuring fairness, costeffectiveness, and adoption of industry standards and best practices. This procurement process began in the spring to ensure the agreement in time to transition to a new service provider and ensure service availability on July 1, 2025.
The RFP was posted on PlanetBids on January 27, 2025. The posting closed on February 28, 2025, and the following five vendors submitted proposals:
• Administrative Services Cooperative, Inc.
• B811 Transportation Service
• GoGo for Business
• PCAM, LLC
• Uber Technologies, Inc.
Analysis of Proposals
Given the urgency to select a contractor to ensure uninterrupted services after June 30, 2025, City staff conducted an expedited yet thorough review and evaluation of the submitted proposals. The goal was to identify a contractor that aligns with the City's overall program needs and provides the best value. At this analysis stage, two contractors were eliminated from further consideration due to significantly high costs and/or an inability to meet the City's full program requirements. The contractors removed from consideration were:
• B811 Transportation Service
• Uber Technologies, Inc.
The remaining three contractors were considered finalists, prompting City staff to engage in further discussions and reviews of each contractor's service model. The three finalists included:
• Administrative Services Cooperative, Inc.
• GoGo for Business
• PCAM LLC
Analysis of Finalist Contractors
Administrative Service Cooperative, Inc. (ASC)
ASC is a cooperative comprising multiple taxi companies operating throughout Los Angeles County. In response to the RFP, ASC proposed to dedicate five taxi-cab vehicles to the Diamond Ride program. However, maintaining consistent and reliable service with just these five vehicles will require a strong incentive program to encourage drivers to stay in Diamond Bar. Drivers can leave without any obligation to return, which could decrease the number of available vehicles. This raises significant concerns about on-time performance during peak demand, an issue already faced by residents with the current service provider.
In discussions with ASC representatives, City staff noted that the proposed service offerings are similar to those of the current provider. ASC employs a pay-per-usage structure that includes a flag drop rate, a mileage rate, and fixed fees for administrative expenses and wheelchair trips. Staff concluded that the need for substantial driver incentives to maintain adequate service levels remains a point of further evaluation and concern.
GoGo for Business (GoGo)
GoGo is a technology company dedicated to improving the mobility and independence of seniors by providing on-demand transportation services through Transportation Network Companies (TNCs) such as Uber and Lyft. This service model enables Diamond Ride participants to request rides through a 24/7 virtual call center without needing a smartphone or mobile application.
GoGo has indicated that wheelchair-accessible vehicles within the Uber and Lyft networks are currently operating as part of a pilot program. Therefore, GoGo recommends utilizing a specialized subcontractor, Coast 2 Coast Transportation (C2C), for such needs of the program. In this arrangement, GoGo will manage standard and wheelchair-accessible trips under the Diamond Ride Program. Standard trips will be fulfilled through Uber and Lyft, while wheelchair-accessible trips will be coordinated through C2C.
GoGo's pricing structure operates on a pay-per-usage basis, featuring a standard flag drop rate, mileage rate, per-minute rate, monitoring and safety fees, booking fees, wheelchair fees, potential surcharges, and a fixed administrative fee.
Parking Company of America (PCAM)
PCAM specializes in transportation and parking management services for both the public and private sectors. Their service model for Diamond Ride includes two wheelchair-accessible vehicles available during regular operating hours. This approach will shift the City from a demand-responsive service model to a reservation-based system, employing 20-minute reservation windows that allow for at least three trips per hour per vehicle.
PCAM noted that 20 minutes is typically sufficient for local trips. However, if a vehicle is assigned to longer trips outside the City limits—such as to Service Area 2 or authorized satellite medical facilities—it will not be available for local service during that time. This limitation may impact overall service capacity, reducing trip availability from three to one per hour per vehicle due to longer travel distances, traffic conditions, and weather factors.
Unlike ASC and GoGo, where the City is subject to a pay-per-usage model, PCAM's service model requires that both wheelchair-accessible vehicles remain in service at all times. This results in fixed costs for the City, regardless of service utilization. City staff concluded that the transition from a flexible demand-responsive model to a reservationbased system is a concern, especially given that an estimated 70% of Diamond Ride trips begin in Diamond Bar and end outside the City or vice versa.
Cost Analysis
To ensure the continued efficiency and fiscal responsibility of the Diamond Ride program, a comparative cost analysis was conducted using prior actual expenditures and service levels. This analysis evaluates ASC, GoGo, and PCAM against current Diamond Ride program usage.
To ensure a fair comparison, the analysis standardizes costs based upon: meter fares, wheelchair fees, administrative fees, and system fees. This approach accounts for differences in how each provider bills for service and allows the City to assess the true cost of service delivery under each model.
Below is a summary of the estimated annual cost for all three proposing contractors based on the information in their proposal and actual ridership for FY 2023-2024.
ASC GoGo PCAM
Meter Fare $271,491.85 $269,303.06 $507,132.00
Wheelchair Fee $20,475.00 $41,220.18 N/A
Admin Fee $40,723.78 $45,000.00 N/A
System Fee $5,500.00 N/A N/A
Estimated Cost Per Month $28,182.55 $29,626.94 $42,261.00 Estimated Annual Cost $338,190.63 $355,523.24 $507,132.00 Recommended Contractor
After evaluating each finalist contractor, City staff has determined that GoGo is the most advantageous to the City because of its ability to meet the City’s overall program needs while enhancing service. GoGo has experience working with over 500 government and non-profit organizations to deliver transportation services, and their ability to implement services seamlessly will ensure minimal disruption for current Diamond Ride participants.
GoGo provides a multi-channel booking system, allowing residents to maintain the familiarity and comfort they are accustomed to when booking Diamond Ride trips.
Residents can contact GoGo’s 24/7 virtual call center, speak with a live operator, or use a touch-tone dial system with specialized prompts. Additionally, residents can book trips through a web portal, with access to a mobile application in the future.
Unlike ASC and PCAM, which restrict the City to a specific dedicated fleet size, GoGo's integration with TNCs like Uber and Lyft allows the City to access a broader network of available vehicles. This flexibility enables the City to meet the demand-responsive structure of the Diamond Ride Program effectively, ensuring on-time performance by averaging a 7-minute response time for ride-matching. Furthermore, Coast 2 Coast Transportation has confirmed they maintain a fleet of nine (9) wheelchair-accessible vehicles available to service Diamond Bar on a reservation-based or demandresponsive basis.
In addition to meeting the necessary program requirements, a partnership with GoGo will provide the following service enhancements and added features:
• GoGo Guardian Service: This feature includes a real-time monitoring system that tracks all trips from start to finish, ensuring rides are satisfactorily completed while providing real-time status updates. Residents will receive trip details, including the driver's name, vehicle type, estimated time of arrival, and trip changes. If a resident is running late to a destination, such as a doctor's office, GoGo will contact the doctor's office to inform them of the delay. • Proper Ride Matching: GoGo will create a user profile for each eligible participant, allowing operators and City staff to add notes for specialized services or other pertinent information. This ensures participants receive the appropriate vehicle and service for their needs.
• Loved One Service: An emergency contact, referred to as a "Loved One," can be added to a rider's account. This person will receive text notifications regarding any trip-related activity for the rider, providing peace of mind for the "Loved One" who may schedule trips on behalf of the rider.
While the transition to GoGo is designed to be smooth and minimize disruptions, it is important to highlight a notable change residents can expect:
• Service Variability: Residents have grown accustomed to interacting with the same drivers and vehicles through OpCo. However, GoGo’s reliance on Uber and Lyft for trip fulfillment could impact the consistency of service that residents have experienced. GoGo utilizes a stringent vetting process for Uber and Lyft drivers, requiring a minimum 4.7-star rating, which filters out nearly 30% of drivers for the service. As a result, vehicles and drivers assigned to each ride will vary from trip to trip.
Despite this notable change, transitioning to GoGo will significantly enhance overall service delivery and address several concerns currently faced by Diamond Ride participants.
The initial agreement term will expire on June 30, 2028, with the option for the City to extend the agreement for two (2) additional one-year periods. The extended initial term of the agreement allows the City to lock in rates over the life of the agreement resulting in potential savings in future expenditures.
Public Outreach and Engagement
With OpCo’s current agreement set to expire on June 30, 2025, GoGo has expressed its readiness to transition and implement its services within two to four weeks following City Council approval. City staff will work closely with GoGo during this implementation phase to inform active Diamond Ride cardholders about the enhanced service and what to expect with GoGo.
An initial letter will be mailed to all active Diamond Ride cardholders to announce the transition and outline the program changes. Information on the transition will also be shared on the City’s website and at the Diamond Bar Center. City staff will also be available via phone, email, and in person to answer questions and provide further information. It is important to note that City staff may adjust outreach efforts at any time based on reach and engagement levels.
Updates to Diamond Ride Program Rules
Inclusion of Kaiser Permanente Irwindale Medical Offices in Medical Service Area 2 Including Kaiser Permanente Irwindale Medical Office in Medical Service Area 2 is essential for improving healthcare access. Although there are Kaiser offices in Diamond Bar, specialized care services are only available at other locations due to resource availability. Participants have continuously expressed their need to travel to Irwindale Kaiser for specialized care, particularly for ophthalmology services. By including the Irwindale office in the service area, the City will eliminate the financial burden associated with conversion trips, thereby facilitating greater access to a comprehensive range of medical services for participants.
Elimination of Conversion Trips
Eliminating conversion trips from the service boundaries of the Diamond Ride Program is essential to restore the program's original purpose of providing residents with a nonprimary subsidized transportation service. The current inclusion of these trips has led to confusion and concerns among residents and increased costs when using the service for non-medical travel outside of City limits, often to restaurants, retailers, and personal services. By eliminating conversion trips, the City clarifies the program's original intent and aligns with the City's Economic Development initiative, "Keep It Local: Shop Diamond Bar First," which encourages support for local businesses. Additionally, this change will enhance operational efficiency, allowing vehicles to be dedicated to more critical local and medical trips and ensuring that resources are used effectively for the benefit of the program.
Elimination of Holiday Ride
Eliminating the Holiday Ride Program from Diamond Ride is due to consistently low participation and enrollment in recent years. This free seasonal program operates from the day after Thanksgiving to January 2, from 7:00 a.m. to 8:00 p.m., allowing Diamond Bar residents ages 18 and older to schedule complimentary trips to and from local businesses. Despite various promotional efforts by the City, the program has not generated sufficient interest among residents. By eliminating this offering, the City can redirect resources and focus on more impactful initiatives that address the program needs better.
Elimination of Fares
Eliminating fares across all service areas, including designated satellite medical facilities, will significantly enhance accessibility and promote equity within the community. By eliminating fares, the City ensures that transportation services are affordable for participants, particularly those who are low-income or living on fixed incomes. This initiative will also reduce financial barriers to public transit, providing equal access for all eligible residents. Additionally, removing fares will streamline operational processes and reduce administrative processes, enabling the City to allocate more resources towards enhancing service. It should be noted that while the elimination of fares is recommended, the City Council may modify this rule as needed based on program needs.
It has been suggested that a membership fee be collected in lieu of participants paying individual fares for each trip. While this option is available, it is important to consider the administrative costs associated with the City staff’s time processing and managing such payments, which would be associated with the 700 – 1,000 applications received annually. Such administrative costs would likely exceed any revenue that would be received from a nominal annual membership fee. In addition, any revenue received would likely be considered Program Revenue and would need to deposited in the Prop A Fund and not offset any General Fund costs.
Miscellaneous Updates to the Diamond Ride Program Rules Further updates to the Diamond Ride Program Rules aim to simplify and clarify the guidelines for participants and are outlined in the attached red-lined version (Attachment 2). These updates also authorize the City Manager to implement future modifications to the Diamond Ride Program Rules as needed to effectively address operational and programmatic requirements.
The updates to the Diamond Ride Program Rules emphasize the City’s commitment to providing a non-primary supplemental transportation service that prioritizes the wellbeing of the City’s senior and disabled residents.
LEGAL REVIEW:
The City Attorney has reviewed and approved the agreement as to form.
PREPARED BY:
REVIEWED BY:
Attachments:
1. 7.1.a Services Agreement - GoGo Techonologies, Inc.
2. 7.1.b REDLINED - Diamond Ride Program Rules - 05.06.2025