Item No. 8.
TO:HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM:OFFICE OF THE CITY MANAGER
BY:JASON CHACON, DIRECTOR OF PARKS & RECREATION
DATE:SEPTEMBER 8, 2026
SUBJECT:APPROVAL OF SECOND AMENDMENT TO AGREEMENT WITH MV TRANSPORTATION, INC. FOR DOWNEY LINK 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 the City limits. MV Transportation, Inc. has provided adequate services to the community through the Downey Link and Dial-A-Ride.
RECOMMENDATION
That the City Council:
Authorize the Mayor, or her designee, to execute Amendment No. 2 to the Professional Services Agreement with MV Transportation for a one-year extension for the period from October 1, 2026 through September 30, 2027, for a total amount not to exceed $2,921,397.
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 of Downey 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 reviewed the proposals and rated them on:
background, affirmations, certifications, financial stability, 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 Los Angeles County. Proposition A funds can only be spent directly on transit costs.
In Fiscal Year 2025-2026, Downey LINK had 50,832 riders and Downey Dial-A-Ride had 15,242 riders. 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 securement.
ANALYSIS
The Agreement with MV Transportation, Inc. for the operation of transit services was for seven years with the option of three, one-year extensions for a total of ten years. Fuel costs are paid for as a pass through to the City.
The Agreement also has stringent standards for customer service expectations and maintenance for both the Downey LINK and Dial-A-Ride in order to continue providing quality transit services to the Downey community.
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 including transit authorities, cities, counties, state agencies, and private parties. MV Transportation operates more than 700 fixed-route transit buses and provides more services 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 high standard level of service to the City of Downey.
MV Transportation, Inc. is responsible for costs such 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.
The compensation outlined in the amendment to the agreement has increased by 2.8% to better reflect current market prices. This is due to cost of living, cost of services, and driver union wages going up significantly since the original agreement was signed seven years ago. A sample table shows the increase of cost from 2025 to 2026 and the percentage increase.
MV Transportation, Inc.
Operational Changes
Description FY 2025-26 Rate FY 2026-27 Rate Increase
Downey LINK $134.898 $138.643 2.7%
Downey Dial-A-
Ride $55.64 $57.19 2.79%
Fuel: Gasoline
(pass through)
Market Rate
Approx. $4.40
Market rate
Approx. $5.41 23%
Fuel: Compressed
Natural Gas (pass
through)
Market rate
Approx. $2.50
Market Rate
Approx. $3.00 20%
CITY COUNCIL PRIORITIES
Fiscal Responsibility
Efficiency & Adaptability
FISCAL IMPACT
Approval of the recommended action will result in an expenditure of $1,935,173 for Downey LINK operations in account 55-4-6280-0700 and $986,224 for Dial-A-Ride operations in account 55-4-6220-0700 for a total of $2,921,397 from Prop A Transit funds as previously approved in the FY 2026-2027 operating budget. There is sufficient working capital for the recommended actions. General fund dollars will not be used for this expense.
Attachments
Attachment A - Second Amendment to Agreement with MV Transporation.pdf
SECOND AMENDMENT TO AGREEMENT WITH MV TRANSPORTATION, INC. TO
PROVIDE TRANSIT SERVICES FOR THE OPERATION OF THE DOWNEY LINK AND
DIAL-A-RIDE SERVICES
THIS SECOND AMENDMENT to the above-referenced agreement is entered into on October 1, 2026, 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. On October 1, 2025, the Parties amended the Agreement to extend the term of the Agreement for the additional one-year period from October 1, 2025, through September 30, 2026.
C. The Parties now wish to amend the Agreement to extend the term for an additional one-year period (as permitted by the Agreement), 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, 2026, through September 30, 2027, (“Extended Term”).
2. Section 3.3.1 of the Agreement, Compensation, is amended to include the sum of $2,921,397 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, 2026:
A.2. Vehicle Maintenance is amended to revise the address for the Contractor’s facility, which shall be 1300 S. Atlantic Ave.
Compton, CA 90221 or as later amended.
A.3.i. Operations, Dispatch and Maintenance Facility is amended to revise the address for the Contractor’s routine maintenance, support service and Downey LINK dispatching, which shall be 1300 S. Atlantic Ave. Compton, CA 90221 or as later amended.
ATTACHMENT A
Docusign Envelope ID: F0E5C67F-3904-84B1-83BB-79D4075FE4C7
4. Except as modified by this Second Amendment, and all prior amendments, all terms and conditions of the Agreement shall remain in full force and effect.
IN WITNESS WHEREOF, the parties hereto have executed this Second Amendment to the Agreement on the date and year first written above.
CITY OF DOWNEY MV TRANSPORTATION, INC.
Claudia M. Frometa Kevin Klika
Mayor Chief Operating Officer
ATTEST
M. Alicia Duarte, CMC Erin Niewinski
City Clerk Chief Financial Officer
APPROVED AS TO FORM
John M. Funk
City Attorney
Docusign Envelope ID: F0E5C67F-3904-84B1-83BB-79D4075FE4C7
Exhibit A
Compensation For Extended Term
Downey LINK Rate
Term
Rate Per Rev
Hours Estimated Annual Cost *
October 1, 2026 - September 30, 2027 $138.643 $1,719,173 *Approximately 12,400 revenue hours
Downey Dial-A-Ride Rate
Term Rate Per Trip Estimated Annual Cost *
October 1, 2026 - September 30, 2027 $57.19 $926,478
*Approximately 16,200 trips
Specials/Extra Work Rate
Term Hourly Rate Estimated Annual Cost *
October 1, 2026 - September 30, 2027 $138.643 $17,746
*Approximately 128 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 $3,500 $42,000
Total $2,921,397
Docusign Envelope ID: F0E5C67F-3904-84B1-83BB-79D4075FE4C7