Item No.
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: OFFICE OF THE CITY MANAGER
BY: JASON CHACON, DIRECTOR PARKS AND RECREATION
DATE: AUGUST 26, 2025
SUBJECT: APPROVAL OF FIRST AMENDMENT TO THE AGREEMENT
WITH MV TRANSPORTION, INC. FOR DOWNEY LINK AND
DOWNEY DIAL-A-RIDE TRANSIT SERVICES
EXECUTIVE SUMMARY
The City Council will consider the approval of a one-year extension of the professional services agreement with MV Transportation, Inc. for Downey LINK and Downey Dial-A- Ride transit services. Downey LINK provides fixed-route public bus service throughout the city, while Downey Dial-A-Ride offers curb-to-curb transportation anywhere within city limits. MV Transportation, Inc has provided adequate services over the past seven years for transit services. The extension is necessary to ensure continued transit services to the community through the Downey Link and Dial-A-Ride.
RECOMMENDATION
That the City Council:
Authorize the City Manager, or his designee, to execute Amendment No.1, to the Professional Services Agreement with MV Transportation for a one-year extension for the period from October 1, 2025 through September 30, 2026 for a total amount not to exceed $2,528,789, from Proposition A funds.
BACKGROUND
The City of Downey offers two transit services, Downey LINK, a fixed route service which is open to all members of the public. Secondly, Downey Dial-A-Ride, a demand response service for Downey residents 65 years and older or Downey residents with a disability that prohibits the use of public transportation.
In 2015, an analysis was done on Transit Services and from the study, it was recommended to move from transit staff being employed by the City to a contracted provider for both Downey LINK and Downey Dial-A-Ride. The benefits of outsourcing include a cost savings to the City, reduced risk management, and reduced staffing hours needed for the maintenance of the Dial-A-Ride vehicles. In May 2018, a Request for Proposal was opened, receiving three acceptable and compliant proposals. The City
APPROVAL OF FIRST AMENDMENT TO AGREEMENT WITH MV TRANSPORTION, INC. FOR
DOWNEY LINK AND DOWNEY DIAL-A-RIDE TRANSIT SERVICES
AUGUST 26, 2025
PAGE 2
2 reviewed the proposals and rated them on: background, affirmations, certifications, and financial sustainability; qualifications and technical capacity; and price proposal, incentives, and staffing plan. MV Transportation, Inc. scored the highest and entered into an agreement with the City.
Proposition A funds are utilized to fund Downey LINK and Downey Dial-A-Ride transit services. Approved by voters in November 1980, Proposition A is a half-cent sales tax dedicated to transportation funding to address transportation challenges in LA County.
Proposition A funds can only be spent directly on transit costs.
ANALYSIS
MV Transportation has been providing transportation services since 1975 and is the leading provider of paratransit services and the largest privately-owned passenger transportation contracting firm in the United States. The company serves many communities across the nation for transit authorities, cities, counties, state agencies, and private parties. MV Transportation operates more than 700 fixed-route transit buses and provides more service than any other contractor on behalf of the Los Angeles Department of Transportation. MV Transportation, Inc. has proven to be a valued vendor who has provided a standard level of service to the City of Downey.
MV Transportation, Inc. is responsible for such costs as: labor (driver, maintenance, support), labor fringe costs, payroll taxes, employee benefits, worker's compensation, staff development (recruiting/testing/training/safety), uniforms, support vehicle expenses (capital and fueling), IT system and analytics, vehicle maintenance, administration costs, maintenance and operating facility, profit, insurance, interest expense, and corporate support.
During Fiscal Year 2024-2025, Downey LINK had 49,322 riders and Downey Dial-A-Ride provided 13,866 trips for 14,995 riders. Both services are working to return to pre- pandemic ridership numbers. Downey Link operates daily from 6:30 a.m. to 6:30 p.m., within the boundary of the City of Downey, with four (4) circulating routes (Northeast, Southeast, Southwest, and Northwest) and service on weekdays with the exception of designated holidays. During the highest volume of service, otherwise known as "peak times", six (6) buses are operated with two "tripper" buses adding additional support to the two busiest routes. During off peak times (9:00 a.m. to 2:00 p.m.), South and North routes combine for a total of two (2) buses. The City of Downey has provided the Dial-A-Ride curb-to-curb reservation-based service since 2007. It is a curb- to-curb shared service that can take participants anywhere within Downey city limits as well as Kaiser Permanente in Bellflower. Dial-A-Ride can be scheduled for many needs such as: medical appointments, shopping, errands, and visits to the Barbara J. Riley Community and Senior Center. All Dial-A-Ride vehicles are equipped with ramps or lifts and wheelchair securements.
The compensation outlined in the amendment to the agreement has increased to better reflect current market prices. This is due to cost of living, cost of services, and
APPROVAL OF FIRST AMENDMENT TO AGREEMENT WITH MV TRANSPORTION, INC. FOR
DOWNEY LINK AND DOWNEY DIAL-A-RIDE TRANSIT SERVICES
AUGUST 26, 2025
PAGE 3
3 driver union wages going up significantly since the original agreement was signed seven years ago. A sample table shows the how the costs have gone up in each business component.
MV Transportation, Inc.
Operational Changes
Description Percentage
Increase
Driver Wages 12.5%
Staff & Maintenance Wages 7.4%
Fringe & Personal Representative Tax 4.9%
Workers Compensation 2.0%
Liability 5.4%
Expenses 3.5%
Maintenance 3.2%
Depreciation & Interest 1.7%
Overhead 4.4%
Profit 4.5%
Total Increase 49.6%
CITY COUNCIL PRIORITIES
Fiscal Responsibility
Efficiency & Adaptability
FISCAL IMPACT
Approval of the recommended action will result in an expenditure of $2,528,789 from the Prop A Transit funds from the Parks and Recreation Transit Account 55-4-6220-0700 for Dial-A-Ride and 55-4-6280-0700 for Downey LINK as previously approved in the FY 2026 operating budget. There is sufficient working capital for the recommended actions.
ATTACHMENTS
Attachment A: First Amendment to Agreement with MV Transportation, Inc.
FIRST AMENDMENT TO AGREEMENT WITH MV TRANSPORTATION, INC.
TO PROVIDE TRANSIT SERVICES FOR THE OPERATION OF THE DOWNEY LINK
AND DIAL-A-RIDE SERVICES
THIS FIRST AMENDMENT to the above-referenced agreement is entered into on October 1, 2025, by and between MV Transportation, Inc. (“Contractor”), and the City of Downey, a charter city and municipal corporation organized and existing under the Constitution and laws of the State of California (“City”). Together, the City and Contractor shall be referred to as the “Parties.”
RECITALS
A. On October 1, 2018, the City entered into an Agreement with MV Transportation, Inc. to provide transit services for the operation of the Downey Link and Dial-A- Ride Services (“Agreement”).
B. The Agreement remains in effect through September 30, 2025, with provision for extension.
C. The Parties now wish to amend the Agreement to extend the term for a 12-month period, provide compensation for the extended term, and make various adjustments to the scope of services.
The Parties therefore agree:
1. Section 3.1.2 of the Agreement, Term, is amended to extend the term of the Agreement for the period from October 1, 2025 through September 30, 2026 (“Extended Term”).
2. Section 3.3.1 of the Agreement, Compensation, is amended to include the sum of $2,528,789 for services provided by Contractor during the Extended Term, as detailed on the attached Exhibit A.
3. Section 3.1.1 and Exhibit A to the Agreement, General Scope of Services, are amended in the following respects effective October 1, 2025:
A.2. Vehicle Maintenance is amended to revise the address for the Contractor’s facility, which shall be 1850 E. 33rd St. Long Beach, CA 90807 or as later amended.
A.3. Facilities and Equipment is amended to require the Contractor to adhere to the California Air Resource Board (CARB) testing and requirements by the state of California. The City is to pay the annual compliance fees for each City-owned vehicle.
A.3.i. Operations, Dispatch and Maintenance Facility is amended to revise the address for the Contractor’s routine maintenance, Docusign Envelope ID: 38534F0F-DC6A-44B0-BBB7-09D80FE56966
ATTACHMENT A
support service and Downey LINK dispatching, which shall be 1850 E. 33rd St. Long Beach, CA 90807 or as later amended.
A.6. Adjustments to Service is amended to require the Contractor to maintain same-day communication if there is a disruption of service, including without limitation, power outage, downed phone lines, detours, inability to fill a shift, or a vehicle out-of-service.
B.1. Downey LINK General, is amended to require that Downey LINK drivers shall be trained in the Mobile Data Terminal. They shall monitor drivers for accuracy, messages, and schedule
adherence. The City has purchased the applicable software.
B.13. Fare Collection, is amended to require that the Downey LINK vehicles have basic coin/bill fareboxes with the Contractor’s ability to adapt to electronic fare payment system integration. The City will purchase future electronic fare payment system and the monthly connectivity.
C.2.c. Dial-A-Ride General, Identification, is deleted in its entirety.
C.2.m Dial-A-Ride General, Fareboxes, is amended to require that the Downey Dial-A-Ride vehicles have basic coin/bill fareboxes with the contractor’s ability to adapt to electronic fare payment system integration. The City will purchase future electronic fare payment system and the monthly connectivity.
C.2.r Dial-A-Ride service, reservation/customer service, is amended to remove Armenian as a required language for staff members and to require fluency by one staff memb er in Spanish and the ability to communicate in Korean with the assistance of Language Line or similar service.
C.2.w Dial-A-Ride service, is amended to require that Contractor shall utilize Trapeze TripSpark Novus’ most current version, currently
7.3.1, for reservations, scheduling, dispatching and reporting.
Dial-A-Ride drivers shall be trained in the tablets and use of Trapeze software to log their daily work such as arrivals, mileage, and ridership. The City has purchased the software and will pay annual maintenance fees.
4. Except as modified by this First Amendment, all terms and conditions of the Agreement, shall remain in full force and effect.
IN WITNESS WHEREOF, the parties hereto have executed this First Amendment to the Agreement on the date and year first written above.
Docusign Envelope ID: 38534F0F-DC6A-44B0-BBB7-09D80FE56966
CITY OF DOWNEY MV TRANSPORTATION, INC.
Hector Sosa Kevin Klika
Mayor Chief Operating Officer
ATTEST
Alicia M. Duarte, CMC Erin Niewinski
City Clerk Chief Financial Officer
APPROVED AS TO FORM
John M. Funk
City Attorney
Docusign Envelope ID: 38534F0F-DC6A-44B0-BBB7-09D80FE56966
Exhibit A
Compensation For Extended Term
Downey LINK Rate
Term
Rate Per Rev
Hours Estimated Annual Cost *
October 1, 2025 - September 30, 2026 $134.898 $1,416,429 *Approximately 10,500 revenue hours
Downey Dial-A-Ride Rate
Term Rate Per Trip Estimated Annual Cost *
October 1, 2025 - September 30, 2026 $55.64 $834,600
*Approximately 15,000 trips
Specials/Extra Work Rate
Term Hourly Rate Estimated Annual Cost *
October 1, 2025 - September 30, 2026 $134.898 $13,760
*Approximately 102 hours
Fuel: Pass Through Costs
Service Term Length Fuel Cost Estimated Annual Cost *
LINK Fuel 12 Months $18,000 $216,000
DAR Fuel 12 Months $4,000 $48,000
Docusign Envelope ID: 38534F0F-DC6A-44B0-BBB7-09D80FE56966