Item 229/2026
Final
City of Garden Grove
INTER-DEPARTMENT MEMORANDUM
To:
Lisa L. Kim From: John Montanchez
Dept:
City Manager Dept: Community Services
Date: 6/9/2026
Subject: Approval of Amendment No. 2 to the Agreement with OCY Management, LLC for transportation services for the Senior Mobility Program at the H. Louis Lake Senior Center. (Action Item)
OBJECTIVE
To request City Cou ncil approval of Amendment No. 2 to the Agreement with OCY Management, LLC, for transportation services for the H. Louis Lake Senior Center Senior Mobility Program (SMP).
BACKGROUND
In June 2024 , City Council approved a two -year Agreement with Cabco Yellow, Inc., dba California Yellow, to provide transportation services for the SMP at the H. Louis Lake Senior Center. The transportation services were split funded through the Orange County Transportation Authority (OCTA), Meals on Wheels OC (MoWOC), and the City of Garden Grove for two twelve-month periods beginning July 1, 2024, and ending June 30, 2026. The Agreement provided the City the option to extend the agreement for an additional three years, one year at a time. Amendment No. 1 was executed on May 29, 2025 to reassign the agreement from Cabco Yellow Inc, dba California Yellow, to OCY Management, LLC.
The current agreement will expire on June 30, 2026, which needs to be extended for the first option year, and amended to increase the total compensation amount for the current year and subsequent annual extensions.
DISCUSSION
Staff is requesting that City Council approve Amendment No. 2 to the Agreement, which will extend the term of the agreement for the first option year, beginning July 1, 2026 through June 30, 2027, and increase the total compensation amount for both the current agreement expiring on June 30, 2026 and for the remaining option years, from $240,000 to $293,000, an increase of $53,000.
Item 229/2026
FINANCIAL IMPACT
Funding for the City’s SMP will continue to be split fun ded by the City, OCTA and MoWOC.
OCTA will provide funding through June 2027. The annual grant allocation for Fiscal Year 2026/27 is $278,000, based on available M2 tax funds allocated for this program. MoWOC will provide annual grant funding in the amount of $15,000. The total available funding for the City’s SMP for Fiscal Year 2026 -27 and remaining fiscal years is $293,000. The City is required to provide a twenty (20) percent match of the grant amount as part of the agreement with OCTA, which is an estimated total amount of $55,600 for Fiscal Year 2026-27 that can be an in-kind or financial match. The City’s match will consist of in-kind staff services for the coordination and management of the City’s SMP, and is currently budgeted in the General Fund. There will be no additional appropriation necessary to approve Amendment No. 2 to the Agreement with OCY Management, LLC, for transportation services for the H. Louis Lake Senior Center Senior Mobility Program.
RECOMMENDATION
It is recommended that the City Council:
Approve Amendment No. 2 to the Agreement with OCY Management, LLC, to:
1) Increase the current compensation amount of the contract, which expires on June 30, 2026, to $293,000, an increase of $53,000 , and 2) Exercise the first option year of the contract, for the term of July 1, 2026 through June 30, 2027, and increase the compensation amoun t to $29 3,000 annually, an increase of $53,000, for transportation services for the City's Senior Mobility Program at the H. Louis Lake Senior Center; and
Authorize the City Manager , or designee, to execute Amendment No. 2 on behalf of the City, including making m inor modifications as appropriate and necessary; and
Authorize the City Manager, or designee, to exercise and execute remaining option years on behalf of the City, including making minor modification s as appropriate and necessary thereto.
By: Janet Pelayo, Deputy Director
ATTACHMENT(S)
1. Amendment No. 2 Agreement with OCY Management LLC