STAFF REPORT
Meeting Date:
May 26, 2026
CONSENT
9 SUBJECT: AWARD OF CONTRACT FOR SENIOR TRANSPORTATION SERVICES RECOMMENDATION: It is recommended that the City Council:
1. Authorize the City Manager to execute a five-year Professional Services Agreement, in a form approved by the City Attorney, with Sally’s Fund for senior transportation services for the period of July 1, 2026, through June 30, 2031, in an amount not to exceed $769,826; and
2. Find the action is exempt under the California Environmental Quality Act Guidelines Section 15061(b)(3).
SUMMARY OF THE MATTER
The City provides annual funding for senior transportation services that allow residents, ages 60 and older, to travel to medical appointments, run errands, and participate in programs at the Laguna Beach Community Center and Susi Q Senior Center. As part of this program the Orange County Transportation Authority (OCTA) provides funding to support the program. OCTA requires the City to prepare a new Request for Proposal (RFP) every five years. The City issued an RFP for a new vendor on March 26, 2026, and staff is recommending award of the contract to Sally’s Fund of Laguna Beach.
DISCUSSION
The City supports a senior transportation program that provides approximately 4,000 rides a year to Laguna Beach seniors. Seniors can schedule trips to the senior center, community center, medical appointments, shopping, and cultural events. The program is operated Monday through Friday from 8:00 a.m. to 5:00 p.m. and is not operated on weekends or holidays.
The program requires the vendor to provide a free shuttle service and a program that allows seniors to make reservations by phone and email, and requires requests for services to be accommodated within one day.
The vendor is also required to make every effort to accommodate last-minute requests.
As this program is partially funded by OCTA record keeping and reporting is required for grant compliance purposes. The City and OCTA have a cooperative agreement (Attachment 2) that expires on June 30, 2026 but can be extended for another five-year term through June 30, 2031.
Procurement Approach. On March 26, 2026 the City issued an RFP for Senior Transportation Services.
The process provided the opportunity for questions, and City staff provided responses to all bidders on April 13, 2026. Four bids were received by the closing date. One vendor, LAZ Parking LLC, sent a letter stating they would not bid on this project as they wished to focus on the trolley and on-demand service.
AWARD OF CONTRACT FOR SENIOR TRANSPORTATION SERVICES
May 26, 2026
Proposals Received
Firm Location
HopSkipDrive Los Angeles, CA
OCY Management, LLC Santa Ana, CA
OTG Rides, Inc. Escondido, CA
Sally’s Fund Laguna Beach, CA
Evaluation of the Proposals. The proposals were evaluated based on the qualifications and experience (40%), demonstrated experience and subject matter expertise (20%), ability to deploy and provide service (20%) and cost (20%). On May 7, 2026, a committee reviewed the proposal based on the evaluation criteria listed above. Below is a brief summary of how the proposals differ in terms of qualifications and experience, demonstrated experience and subject matter expertise, ability to deploy and provide service, and cost.
Topic HopSkipDrive OCY
Management
OTG Rides Sally’s Fund
Qualifications
and Experience
Contract drivers
who are not
assigned to the
City. Do not
currently provide
services to seniors.
More of a
rideshare service.
In business in
Orange County for
30 years. A taxi
company, but it
does not provide
the level of service
to seniors. The
project manager is
currently
managing 19 other
contracts
Not a local
presence. Will not
stay with seniors
and assist them
during their trips.
Have been
providing the
service to the
City’s seniors
since 1982 and
understand the
senior population.
A stable group of
drivers who know
the seniors
Demonstrated
Experience and
Subject Matter
Expertise
In operation since
2014. Similar
experience.
Unknown if there
are local drivers to
perform the
service. Very
technology-heavy
and not in keeping
with program
objectives.
Works with 8
Orange County
cities. Provide a
taxi service, but
may not provide
the level of service
required by the
City’s seniors.
The nearest
location is in San
Diego County and
would not be as
available to
seniors. Did not
show they could
adequately
provide services.
Understand the
senior population
and the
expectations of the
City and OCTA.
Care and concern
for seniors was not
seen in any other
proposal. The City
of Laguna Beach
is their only client,
and they are
dedicated to the
seniors of Laguna
Beach.
AWARD OF CONTRACT FOR SENIOR TRANSPORTATION SERVICES
May 26, 2026
Ability to Deploy
and Provide
Service
Scheduling would
be taken over by
the City and that is
in conflict with the
RFP. Drivers
provide their own
vehicles.
Proven record
with meeting the
City’s
requirements. Up
to 60 minute wait
times. Have
vehicles ready to
provide service.
Located in San
Diego County.
They are a Florida
corporation. Only
provide one
vehicle and may
not be able to
provide additional
vehicles and no
employees in the
area at this time.
Are the current
service provider
and can continue
to operate.
Cost Wheelchair assists
are extra and
proposal not a
fixed fee and not
in alignment with
city staffing
resources.
Costs are in line
with City’s budget
Fixed fee and very
expensive
compared with
current vendor and
other proposals
As a non-profit,
the City does not
bear the full cost
of the program.
Based on the evaluation of the written proposals, the evaluation committee selected Sally’s Fund to continue operating the Senior Transportation Services.
FINANCIAL ANALYSIS
The proposed agreement with Sally’s Fund for Senior Transportation Services has a total not-to-exceed compensation amount of $769,826 over the five-year period. There are no proposed changes to the level of service. The proposed Fiscal Year 2026-27 includes funding for this program.
The annual cost of the contract over the five-year period is in the table below. OCTA grant is based on current funding levels. Any reduction in the grant amount would be the City's responsibility.
Contract Year City Cost Est. OCTA Grant Total Cost
Year 1 $91,745 $53,255 $145,000
Year 2 $96,095 $53,255 $149,350
Year 3 $100,576 $53,255 $153,831
Year 4 $105,191 $53,255 $158,446
Year 5 $109,944 $53,255 $163,199
Total $503,551 $266,275 $769,826
ENVIRONMENTAL ANALYSIS
The recommended action is exempt under the California Environmental Quality Act under CEQA Guidelines Section 15061(b)(3) because it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment. Here, the recommended action meets the exemption because it involves authorizing the City Manager to execute an agreement for services that are currently provided or services less than those that are currently provided. Upon taking the recommended
AWARD OF CONTRACT FOR SENIOR TRANSPORTATION SERVICES
May 26, 2026
action, City staff will cause to be filed within five calendar days a notice of statutory exemption with the County and State Clearinghouse. .
ATTACHMENTS
1. Professional Services Agreement with Sally’s Fund (Pgs. 5-27)
2. Cooperative Agreement with OCTA (Pgs. 28-52)
Submitted By: Alexis Braun Approved: .David A Kiff
Alexis Braun, Acting Director of
Transit and Community Services
Dave Kiff, City Manager
Report Prepared By: Coordinated With:
Carol Jacobs, Management Specialist Alexis Braun, Acting Director of Transit and Community Services and Jane Abzug, Assistant City
Attorney