CITY COUNCIL AGENDA REPORT
MEETING DATE: 6/17/2025
DEPARTMENT: Management Services
SUBJECT:
THIRD AMENDMENT TO THE AGREEMENT WITH ORANGE COUNTY
YELLOW MANAGEMENT, LLC FOR SENIOR TAXI TRANSPORTATION
SERVICES
RECOMMENDED ACTION(S):
1. Approve the Third Amendment to the Agreement to Orange County Yellow Management, LLC with a compensation amount of $275,543.62 for Senior Taxi Transportation Services.
2. Authorize the Mayor to sign, and the City Clerk to attest, the Third Amendment to the Agreement with Orange County Yellow Management, LLC., substantially in the form attached.
EXECUTIVE SUMMARY:
The Community Services Division is responsible for overseeing the City’s Senior Mobility Program (“SMP”). The SMP consists of bus and taxi transportation services for seniors who are 60 years of age and older and reside in Lake Forest.
Funds for the SMP are received from the Orange County Transportation Authority (“OCTA”) under the Measure M2 sales tax program, providing 80% of funding with a 20% City match.
The City has contracted with Orange County Yellow Management, LLC (“OCY”) (formerly California Yellow Cab Inc.) for senior taxi transportation services since 2017. OCY notified staff of the corporate name change in March 2025 (Attachment 1). The City Council approved the current agreement for senior taxi services with OCY in June of 2022 with a total compensation amount of $169,000 (“Agreement”) (Attachment 2). The City Manager signed two subsequent amendments. In March of 2024 the First Amendment changed the Scope of Work enabling the expansion of the SMP as called for in Initiative #43 of the City’s Strategic Business Plan (Attachment 3). The Second Amendment put in place two minimum ride fees; $15 minimum charge for trips within Lake Forest city limits and a $20 minimum charge for trips that end outside of Lake Forest city limits (Attachment 4). The Agreement with OCY is set to expire on June 30, 2025.
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Staff recommends the City Council approve the proposed Third Amendment to the Agreement with Orange County Yellow Management, LLC to provide senior taxi transportation services (Attachment 5). The proposed Third Amendment would extend the agreement term to June 20, 2026, and increase the compensation by $106,543.62, with an optional second one-year extension. The 2025-2027 Operating Budget includes sufficient funding to cover the costs of the recommended action.
BACKGROUND:
The current SMP consists of bus transportation and taxi service, both offered through contracts. The majority of funding for the City’s SMP is provided by the OCTA Measure M2. Funding is allocated to Orange County cities based on senior population figures for the entire county. Per the funding agreement with OCTA, the City is required to provide the 20% matching fund amount and OCTA provides the remaining 80% from Measure M2. The City’s 20% matching fund amount is offset by fees collected for the SMP and in-kind work provided by City staff. The City has never contributed funds directly towards the program.
OCTA’s Measure M2 funding guidelines require that SMP transportation can only be taken to locations within Orange County. The City contracts with Age Well Senior Services, Inc., (“Age Well”) to provide bus transportation to Lake Forest residents 60 years and older, Monday through Thursday, between the hours of 8:30 a.m. -10:00 a.m. and 2:00 p.m. -2:30 p.m. Bus transportation includes curb- to-curb service on a fully accessible fourteen-passenger bus. Riders must call in advance to make reservations to ride the bus. Age Well buses transport seniors to City-sponsored senior activities/programs at no charge to riders. Ridership averages 120 per month. Age Well buses are also used for transportation as part of The Clubhouses’ Mini Excursion program. Transportation to The Clubhouse and staff-organized programs are the focus of the programs associated with the Age Well contract.
The senior taxi transportation program is provided by OCY under the Agreement awarded by the City Council on June 23, 2022 (Attachment 2). The Agreement is set to expire on June 30, 2025 (Attachment 2). On March 20, 2024, the First Amendment to change the Scope of Work of the Agreement was completed (Attachment 3). Strategic Plan Initiative #43 called for the expansion of the Senior Mobility Program during Fiscal Year 2023-24. The initiative necessitated an expansion of the marketing for the SMP and provision of additional locations to increase participation. The First Amendment changed the Scope of Work by adding additional locations to the service areas covered by OCY. In addition to expanding the travel locations, staff hired a marketing firm to advertise the program to more Lake Forest residents with the goal of expanding participation. 3 6
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The senior taxi transportation service offers Lake Forest Seniors discounted taxi services 24 hours a day, seven days a week. Seniors typically use the transportation service to complete activities of daily living, such as traveling to medical appointments, shopping for groceries, picking up prescriptions, or visiting family members. The service offers Lake Forest seniors who are unable to continue driving the ability to travel independently. OCY, formally known as California Yellow Cab (Attachment 1), is the City’s current senior taxi services provider.
DISCUSSION:
On August 1, 2024, staff were contacted by OCY about implementing a minimum ride fee to all trips. The purpose of the minimum ride fee is to cover OCY’s costs incurred primarily during short trips. This type of arrangement is common with other cities providing similar programs throughout the region. Staff agreed to the reasonableness of a $15 minimum charge for trips within Lake Forest city limits and a $20 minimum charge for all trips that end outside of Lake Forest city limits.
The implementation of these per-ride minimum charges did not alter the per-mile fee already charged pursuant to the compensation section of Agreement. The Second Amendment to the Agreement memorialized the inclusion of these two minimum charges (Attachment 4).
Staff is proposing the Third Amendment to the Agreement with OCY (Attachment 5). The Third Amendment would increase the compensation amount by $106,543.62 for a revised total compensation amount of $275,543.62. It would also extend the term of the Agreement to June 30, 2026, thereby exercising the first of the two optional one-year extensions. The increased compensation allows for increased minimum charges per mile, as well as the increase in the number of riders for the program due to SMP’s expansion. The Third Amendment would simplify the compensation schedule by eliminating minimum charges, wait time fees, and specific per-mile assessments for all trips under 15 miles. Instead, OCY would charge a flat rate based on different levels of miles driven as described in Table 1 below.
Table 1: Third Amendment Compensation Structure
Miles Flat Charge
0.1-2 miles $18.50 one-way
2.1-4 miles $21.00 one-way
4.1-6 miles $26.00 one-way
6.1-9 miles $33.00 one-way
9.1-12 miles $42.00 one-way
12.1-15 miles $51.00 one-way
15.1+ miles $3.50 per mile
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This new rate structure amounts to a moderate increase in rates currently charged by OCY. For example, under the current rate structure, a 4-mile ride within City limits would cost $17.30. Under the proposed Third Amendment, this same 4-mile ride would cost $21.00. An 11-mile ride that travels outside of City limits under the current rate structure would cost $40.02. The Third Amendment would bring this same 11-mile ride cost to $42.00. Per staff’s analysis, these rates are consistent with the rates charged to the neighboring cities of Mission Viejo, Lagua Hills and Laguna Niguel for similar senior taxi programs.
Vendor Performance Assessment
Pursuant to the City’s Purchasing and Contracting Guidelines, staff completes a vendor performance assessment during a proposed contract amendment. The vendor assessment is a guide to determine if a contract should be amended, renewed, or terminated based on performance in the following categories:
performance of scope of services, timeliness, budget performance, and customer service. Utilizing an evaluation form, staff rates the consultant in each category.
Table 2 below provides an overall assessment of the consultant’s performance since work under the original Agreement was initiated. Consistent with the City’s Purchasing and Contracting Guidelines, including the vendor assessment, the contract is eligible for a contract amendment.
Table 2: Vendor Assessment
Orange County Yellow Management, LLC
July 1, 2022 – June 17, 2025
Category Assessment
Performance of Scope of
Services
☐Unsatisfied ☐Satisfied ☒Very Satisfied ☐N/A
Timeliness ☐Unsatisfied ☐Satisfied ☒Very Satisfied ☐N/A Budget Performance ☐Unsatisfied ☐Satisfied ☒Very Satisfied ☐N/A Customer Performance ☐Unsatisfied ☐Satisfied ☒Very Satisfied ☐N/A The proposed Third Amendment was prepared by the Management Services Department and has been reviewed and approved by the City Attorney as to form. Staff recommended the City Council authorize the proposed Third Amendment to the Agreement with OCY.
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FISCAL IMPACT:
Approval of the recommended action would result in an additional $106,543.62 in compensation authorized to be paid to Orange County Yellow Management, LLC. and extend the term of the Agreement by one year to June 30, 2026. Funds for the SMP are received from the Orange County Transportation Authority (“OCTA”) under the Measure M2 sales tax program, providing 80% of funding with a 20% City match. The 2025-2026 Operating Budget includes sufficient funding to cover the costs of the recommended action.
ATTACHMENTS:
1. California Yellow Cab Name Change to Orange County Yellow Management, LLC.
2. Agreement with Yellow Cab
3. First Amendment to the Agreement with Yellow Cab
4. Second Amendment to the Agreement with Yellow Cab
5. Proposed Third Amendment to Yellow Cab Agreement
Initiated By: Victoria Blethen, Recreation Manager
Submitted By: Sean McGovern, Deputy City Manager
Approved By: Debra Rose, City Manager