Item 368/2026
Final
City of Garden Grove
INTER-DEPARTMENT MEMORANDUM
To:
Lisa L. Kim From: John Montanchez
Dept:
City Manager Dept: Community Services
Date: 9/8/2026
Subject: Approval of Amendment No. 3 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. 3 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 City can exercise 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. Amendment No. 2 was executed on June 9, 2026 to 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 agreement expiring on June 30, 2026 and for the remaining option years, from $240,000 to $293,000, an increase of $53,000.
DISCUSSION
The $293,000 annual not -to-exceed amount was based on projections regarding expec ted usage of the SMP, but actual program usage may vary, resulting in costs that exceed the estimated amount and requiring additional funding to pay outstanding invoices. Higher-than- anticipated ridership, particularly for medical and nutrition trips, has resulted in program costs exceeding initial projections.
Item 368/2026
Staff is requesting that City Council approve Amendment No. 3 to the Agreement, which will increase the total compensation amount from $293,000 to $307, 084.35, an increase of $14,084.35 to cover Fiscal Year 2025/26 outstanding invoices.
FINANCIAL IMPACT
Funding for the City’s SMP will continue to be split funded by the City, OCTA and MoWOC.
OCTA will provide funding through June 2027. There will be no additional appropriation necessary to approve Amendment No. 3 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. 3 to the Agreeme nt with OCY Management, LLC, increasing the contract amount by $14,084.35 to cover Fiscal Year 2025/26 outstanding invoices for a total of not-to-exceed $307,084.35; and Authorize the City Manager, or designee, to execute Amendment No. 3 on behalf of the C ity, including making minor modifications as appropriate and necessary.
ATTACHMENT(S)
1. Amendment No. 3 for the Agreement with OCY Management LLC