1 TRANSIT SERVICE OPERATION AGREEMENT
BETWEEN THE CITY OF REDONDO BEACH AND
THE CITY OF HERMOSA BEACH
THIS TRANSIT SERVICE OPERATION AGREEMENT (this “Agreement”) is entered into by and between the City of Redondo Beach (“Redondo Beach”), on behalf of Beach Cities Transit (“BCT”), which is a division of Redondo Beach, and the City of Hermosa Beach (“Hermosa Beach”). Redondo Beach and Hermosa Beach are sometimes referred to herein as the “Parties”, and individually as a “Party”.
RECITALS
A. WHEREAS, on July 1, 2006, Redondo Beach and Hermosa Beach entered into that certain Transit Service Operation Agreement (“First Agreement”) to enable BCT Line 109 as described in Attachment A to take over public transportation services for the discontinued Los Angeles County Metropolitan Transportation Authority ("LACMTA”) Line 439 for a two (2) year term.
B. WHEREAS, Redondo Beach and Hermosa Beach subsequently entered into new agreements relating to Line 109 in 2008, 2010, 2011, 2012, 2013, 2015, 2017, 2019, 2020, 2021, 2022, 2023, 2024, and 2025 (the "2025 Agreement").
C. WHEREAS, the 2025 Agreement expires on June 30, 2026, and the Parties desire to enter into a new agreement on the terms and conditions set forth below.
NOW THEREFORE, IN CONSIDERATION OF THE MUTUAL PROMISES
CONTAINED HEREIN, THE PARTIES AGREE AS FOLLOWS:
1. TERM
This Agreement shall be effective as of July 1, 2026, and shall have a one (1) year term expiring on June 30, 2027. Hermosa Beach acknowledges that an agreement in similar form to this Agreement or an amendment may be negotiated for continued Line 109 service beyond June 30, 2027. In the event Hermosa Beach intends to renew this Agreement, Hermosa Beach shall notify Redondo Beach of its intent to renew at least 182 days prior to the expiration of this term. Such notice shall not create any obligation on the part of Hermosa Beach to renew or extend this Agreement unless a new agreement is executed in writing by both parties.
2. SERVICE DESCRIPTION
A. Redondo Beach shall operate Line 109 consistent with the maps shown in Attachment A, which is attached hereto and by this reference incorporated herein ("Line 109" or the "Service").
B. Redondo Beach engage a qualified transportation contractor to provide bus services to Line 109 on the days of the week, service times and days, and frequencies of service equal to or better than that which was operated by BCT immediately prior to the effective date of this Agreement. The service schedules for Line 109, as 2 illustrated in Attachment B is attached hereto and by this reference incorporated herein.
C. Redondo Beach may adjust the route and schedule of Line 109; however, any changes or reductions to the Service in excess of 10% of service hours shall be brought to Hermosa Beach in writing for review and comment prior to implementation. Redondo Beach shall update all General Transit Feed specifications (“GTFS”) infrastructure when any updates are made to the Line 109 route, timetables, or bus stop locations. It is critical that a new GTFS file be created and uploaded to all downstream infrastructure if any update is made to the route path, scheduled timetable, or change in the bus stop location since it will directly affect the quality of the data feed to customers via applications, such as Google Maps, Transit App.
D. Redondo Beach reserves its rights, at its sole discretion, to enter into contracts for Line 109 service with any other provider of its choice at any time without the approval of Hermosa Beach. Redondo Beach shall be responsible for any and all aspects of administration of the service contract, and shall assure that the contract includes provisions pertaining to insurance, age, maintenance and operation of vehicles, driver qualifications and other similar provisions typical of an agreement of that kind.
E. Redondo Beach shall base the percentage of cost for Line 109 on the route service mile calculations, as illustrated in Attachment C, which is attached hereto and by this reference incorporated herein
3. PASSENGER FARES
Redondo Beach may charge fares for the Service consistent with its existing fixed-route service. Redondo Beach will accept interagency transfers with adjacent transit operators and participate in the EZ Pass Program. Redondo Beach shall retain all farebox revenues. BCT Line 109 passenger fare revenues shall be used to offset operation expenses.
4. FUNDING
A. For costs associated with the operation of Line 109, Hermosa Beach shall pay Redondo Beach in accordance with this Section. Hermosa Beach shall not pay Redondo Beach for capital costs nor shall Hermosa Beach provide equipment to operate the Service.
B. FY 2026-2027: Funding from Hermosa Beach shall be $19,761 for fiscal year 2026-2027.
Service operating expenses are incorporated in the service hour rates and include without limitation, driver wages, general administration and overhead, and maintenance costs. The calculation for these estimated costs shall be in accordance with the Management Agreement for the Operation and Maintenance of Beach 3 Cities Transit Fixed Route Transit Between the City of Redondo Beach and Parking Concepts, Inc. dba Transportation Concepts. The estimated revenues shall be based on the LACMTA funding formula and the prior fiscal year’s fare revenues for Line 109.
Real Time Information (“RTI”) system operating expenses include without limitation, capital equipment, passenger/administration interface programs, cellular and internet hosting of RTI services and report management programs.
C. Redondo Beach is responsible for all marketing and promotion of the service.
Notwithstanding the foregoing, Hermosa Beach may advertise at its sole expense, but any reference to BCT must be approved in writing by Redondo Beach prior to such reference. Only the BCT logo may be used to advertise or market the service.
D. On a quarterly basis, BCT will meet with the City of Hermosa Beach, City of Manhattan Beach, and City of El Segundo to develop and discuss:
(1) Marketing and communications strategies directed towards increasing BCT Line 109 ridership. Hermosa Beach shall provide assistance for public outreach and information to target Hermosa Beach residents and non-resident community members.
(2) Overview of the previous quarter’s Line 109 service including updates on ridership, new initiatives, schedule and route updates, etc.
5. REPORTING/INVOICING
A. Redondo Beach shall report to Hermosa Beach on a quarterly basis, all of the following data for the Line 109 Service:
(1) Passengers carried
(2) Revenue hours operated
(3) Revenue miles operated
(4) Total operating costs, including service operating expenses and RTI capital and operating expenses
B. Redondo Beach shall submit said report to the Hermosa Beach City Manager or designee in writing within forty-five (45) days after the end of each reporting quarter.
C. Redondo Beach shall submit quarterly reports to the Hermosa Beach City Manager or designee.
D. Redondo Beach shall incorporate Line 109 data into its Federal Transit Administration’s National Transit Data (NTD) annual report for the entire BCT fixed route transportation system. Redondo Beach shall provide to Hermosa Beach 4 annual NTD random sampling data which provides the statistics to estimate the number of passengers boarding and alighting by stop in Hermosa Beach, and the total estimated Hermosa Beach passengers. Redondo Beach shall be responsible for any and all aspects of administration of the service contract, and shall include provisions pertaining to insurance.
E. Hermosa Beach retains the right to audit the BCT’s records of Line 109 Service, and to periodically monitor the Service.
F. Redondo Beach shall schedule quarterly joint meetings with the partnering cities of El Segundo, Hermosa Beach, and Manhattan Beach. Redondo Beach will provide a quarterly update of Line 109 services, and discuss coordinated marketing and public outreach efforts and operating and financing issues that affect BCT services.
6. INSPECTION OF RECORDS
BCT records relevant to this Agreement shall be available for inspection by Hermosa Beach at all reasonable times for a period of at least three (3) years for each year or after the expiration date, whichever comes first.
7. NON-DISCRIMINATION
No person shall on the grounds of race, color, religion, national origin, ancestry, age, sex, gender, gender identity, gender expression, age, sexual orientation, marital status, genetic information, physical or mental disability, military or veteran status, or any other protected classification under applicable federal or state law, be excluded from participation in, or be subject to discrimination in the operation of the Line 109 Service.
8. COORDINATION
A. Redondo Beach shall coordinate its BCT services, to the extent practical, so that passengers transferring between transit operators will have minimal waiting times.
This coordination will require transit agencies to communicate with each other as many weeks as possible in advance of any planned schedule change to the services that may affect passenger transfers.
B. The Hermosa Beach Project Manager for this project shall be the City Manager or his/her designee. The BCT coordinator for this project shall be the Community Services Director or his/her designee.
9. WAIVER OF BREACH
The waiver of each Party of any breach of any provision of this Agreement shall not operate or be construed as a waiver of any subsequent breach of that same or any other provision.
10. NOTICES
A. All notices, requests, demands, or other communications under this Agreement shall be in writing. Notice shall be given as follows:
5 (1) Personal Delivery. Personally delivered to the recipient. Notice is effective on delivery.
(2) First Class Mail. First class to the last address of the recipient known to the Party giving notice. Notice is effective three mail delivery days after deposit in a United States Postal Service office or mailbox.
(3) Certified Mail. Certified mail with return receipt requested. Notice is effective on receipt, if delivery is confirmed by a return receipt. (4) Overnight Delivery. Delivered by an overnight delivery service, charges prepaid or charged to the sender’s account. Notice is effective on delivery, if delivery is confirmed by the delivery service.
(5) Email. When sent by email, notice is effective on the second business day after emailing, provided that no “bounce-back” or similar message indicating non-delivery is received.
Addresses for purpose of giving notice shall be as follows:
Beach Cities Transit: City of Redondo Beach
Transit Manager
Attention: Line 109
415 Diamond Street
Redondo Beach, CA 90277
Email: [email protected]
With a copy to: City of Redondo Beach
The City Clerk’s Office
415 Diamond Street
Redondo Beach, CA 90277-2836
Email: [email protected]
City of Hermosa Beach: City of Hermosa Beach
Community Development Director
1315 Valley Drive
Hermosa Beach, CA 90254-3885
Attention: Alison Becker
Email: [email protected]
CC: [email protected]
6 With a copy to: City Clerk
City of Hermosa Beach
1315 Valley Drive
Hermosa Beach, CA 90254-3885
Email: [email protected]
B. Any correctly addressed notice that is refused, unclaimed, or undeliverable because of an act or omission of the Party to be notified, shall be deemed effective as of the first date the notice was refused, unclaimed or deemed undeliverable by the postal authorities, messenger or overnight delivery service.
C. Either Party may change its address or email by giving the other Party written notice of the change.
11. SEVERABILITY
Should any part, term or provision of this Agreement or any document required herein to be executed be declared invalid, void or unenforceable, all remaining parts, terms and provisions hereof shall remain in full force and effect and shall in no way be invalidated, impaired or affected thereby.
12. INTEGRATION; AMENDMENT
This Agreement represents the entire understanding of Hermosa Beach and Redondo Beach as to those matters contained in it. No prior oral or written understanding shall be of any force or effect with respect to the subject matter hereof. This Agreement may not be modified or altered except by written amendment executed by both Parties.
13. INTERPRETATION
The terms of this Agreement should be construed in accordance with the meaning of the language used and should not be construed for or against either Party by reason of the authorship of this Agreement or any other rule of construction that might otherwise apply.
14. GOVERNING LAW; JURISDICTION
This Agreement will be administered and interpreted under the laws of the State of California. Jurisdiction of any litigation arising from this Agreement will be in Los Angeles County, California.
15. COMPLIANCE WITH STATUTES AND REGULATIONS
BCT will be knowledgeable of and will comply with all applicable federal, state, county and city statutes, rules, regulations, ordinances and orders.
16. NON-LIABILITY OF CITIES
No officer or employee of either city shall be personally liable to the other, in the event of any default or breach thereunder.
7 17. INDEMNIFICATION
To the fullest extent permitted by law, each Party (“Indemnifying Party”) hereby agrees to defend, protect, indemnify and hold harmless the other Party (the “Indemnified Party”), its elected and appointed officials, officers, employees, contractors, volunteers, agents, and members of boards and commissions from and against any and all loss, damages, costs, expenses, liabilities, claims, demands, causes of action, proceedings, and judgments, including reasonable attorney’s fees, expert fees and costs of suit, to the extent arising out of or resulting from the negligent acts, errors or omissions, or willful misconduct of the Indemnifying Party, its officials, officers, employees, contractors, volunteers, agents, or members of boards and commissions in the performance of this Agreement.
Neither Party shall be obligated to indemnify the other for any claim to the extent arising from the negligence or willful misconduct of the Indemnified Party, its officials, officers, employees, contractors, volunteers, agents, or members of boards and commissions. Where a claim arises from the concurrent negligence or willful misconduct of both Parties, or their officials, officers, employees, contractors, volunteers, agents, or members of boards and commissions each Party’s indemnity obligation shall be limited to its proportionate share of fault.
This indemnification obligation shall survive the expiration or termination of this Agreement and shall not be limited by any insurance coverage maintained by either Party.
18. AUTHORITY
Each Party warrants that the individuals who have signed this Agreement have the legal power, right and authority to enter into and execute this Agreement on behalf of each respective Party.
SIGNATURES FOLLOW ON NEXT PAGE
8 IN WITNESS WHEREOF, the Parties have executed this Agreement in Redondo Beach, California, as of this 18th day of August, 2026.
CITY OF REDONDO BEACH CITY OF HERMOSA BEACH
By: ______________________________ By: ______________________________ James A. Light, Mayor Mike Detoy, Mayor
APPROVED AS TO FORM: APPROVED AS TO FORM:
______________________________ ______________________________ Joy A. Ford, City Attorney Jason Baltimore, Interim City Attorney ATTEST: ATTEST:
______________________________ ______________________________ Eleanor Manzano, City Clerk Martha Alvarez, City Clerk
7/15/2026 | 5:12 PM PDT
7/15/2026 | 5:44 PM PDT
7/15/2026 | 6:37 PM PDT
Diane Strickfaden, Risk Manager
7/17/2026 | 8:29 AM PDT
9 Attachment A: Line 109 Map
10 Attachment B: BCT Line 109 Time Schedule
11 Attachment C
Beach Cities Transit Line 109
Route Service Mile Calculations by City
Route Miles NB Miles SB Miles Average
Miles Per
City
Allocation
Formula %
Redondo Beach & Los Angeles 5.3 6.9 6.1 34.95%
Hermosa Beach 2.2 1.6 1.90 10.89%
Manhattan Beach 3.4 2.2 2.8 16.05%
El Segundo 7.7 5.6 6.65 38.11%
Total Miles 18.6 16.3 17.45 100.00%
SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE
THE EXPIRATION DATE THEREOF, NOTICE WILL BE DELIVERED IN ACCORDANCE WITH THE POLICY PROVISIONS.
INSURER(S) AFFORDING COVERAGE
INSURER F :
INSURER E :
INSURER D :
INSURER C :
INSURER B :
INSURER A : NAIC #
NAME: CONTACT
(A/C, No): FAX
E-MAIL ADDRESS:
PRODUCER
(A/C, No, Ext): PHONE
INSURED
COVERAGES CERTIFICATE NUMBER: REVISION NUMBER:
IMPORTANT: If the certificate holder is an ADDITIONAL INSURED, the policy(ies) must have ADDITIONAL INSURED provisions or be endorsed.
If SUBROGATION IS WAIVED, subject to the terms and conditions of the policy, certain policies may require an endorsement. A statement on this certificate does not confer rights to the certificate holder in lieu of such endorsement(s).
THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER. THIS
CERTIFICATE DOES NOT AFFIRMATIVELY OR NEGATIVELY AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW. THIS CERTIFICATE OF INSURANCE DOES NOT CONSTITUTE A CONTRACT BETWEEN THE ISSUING INSURER(S), AUTHORIZED REPRESENTATIVE OR PRODUCER, AND THE CERTIFICATE HOLDER.
OTHER:
(Per accident)
(Ea accident)
$
$
N / A
SUBR WVDADDL
INSD
THIS IS TO CERTIFY THAT THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED. NOTWITHSTANDING ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS
CERTIFICATE MAY BE ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS, EXCLUSIONS AND CONDITIONS OF SUCH POLICIES. LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS. $
$
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$ PROPERTY DAMAGE
BODILY INJURY (Per accident)
BODILY INJURY (Per person) COMBINED SINGLE LIMIT
AUTOS ONLY
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ANY AUTO
AUTOMOBILE LIABILITY
Y / N WORKERS COMPENSATION
AND EMPLOYERS' LIABILITY OFFICER/MEMBER EXCLUDED?
(Mandatory in NH) DESCRIPTION OF OPERATIONS below
If yes, describe under
ANY PROPRIETOR/PARTNER/EXECUTIVE
$
$
$ E.L. DISEASE - POLICY LIMIT E.L. DISEASE - EA EMPLOYEEE.L. EACH ACCIDENT EROTH- STATUTE PER
(MM/DD/YYYY) LIMITS POLICY EXP(MM/DD/YYYY) POLICY EFFLTR TYPE OF INSURANCE POLICY NUMBER INSR
DESCRIPTION OF OPERATIONS / LOCATIONS / VEHICLES (ACORD 101, Additional Remarks Schedule, may be attached if more space is required)
EXCESS LIAB
UMBRELLA LIAB EACH OCCURRENCE $ AGGREGATE $
$
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PREMISES (Ea occurrence) $ COMMERCIAL GENERAL LIABILITY CLAIMS-MADE OCCUR GEN'L AGGREGATE LIMIT APPLIES PER: POLICY PRO- JECT LOC
CERTIFICATE OF LIABILITY INSURANCE DATE (MM/DD/YYYY)
CANCELLATION
AUTHORIZED REPRESENTATIVE
ACORD 25 (2016/03)
© 1988-2015 ACORD CORPORATION. All rights reserved.
CERTIFICATE HOLDER
The ACORD name and logo are registered marks of ACORD
HIRED
AUTOS ONLY
7/16/2026
Marsh & McLennan Agency LLC
Marsh & McLennan Ins. Agency LLC
1 Polaris Way #300
Aliso Viejo CA 92656
Juliana Bae 949-900-1780 [email protected] License#: 0H18131 National Union Fire Ins Co PittsburghPA 19445 PARKCONCIN AXIS Insurance Company 37273 Parking Concepts, Inc.
12 Mauchly, Bldg I
Irvine, CA 92618
1946125931
A X 2,000,000 X 1,000,000 10,000 2,000,000 4,000,000 X X Y N 027784865 6/1/2026 6/1/2027
4,000,000
A
A
3,000,000 X
X X
N N 027784862
027784864
6/1/2026
6/1/2026
6/1/2027
6/1/2027
GKLL 3,000,000
A X 10,000,000 X
BE033074518 6/1/2026 6/1/2027
10,000,000 X
10,000
A X
N
N 027784866 6/1/2026 6/1/2027
1,000,000 1,000,000 1,000,000
B Crime/Employee Dishonesty
Theft of Client's Property
P00100163475402 6/1/2026 6/1/2027 Limit / Ded Per Occ
Limit / Ded Per Occ
$1M / $50k
$2M / $50k
RE: LOC #516 - Redondo Beach Cities Transit - 1521 Kingsdale Avenue, Redondo Beach, CA 90278.
The Cities of Redondo Beach, Hermosa Beach, Manhattan Beach and El Segundo, their officers elected and appointed officials, employees and volunteers are included as Additional Insured with respects to General Liability, where required by written contract, per the attached endorsements. Insurance is Primary & Non-Contributory, where required by written contract, per the attached endorsement. The Cities of Redondo Beach 1922 Artesia Boulevard
Redondo Beach, CA 90278
POLICY NUMBER: COMMERCIAL GENERAL LIABILITY
CG 20 26 12 19
THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY.
CG 20 26 12 19 © Insurance Services Office, Inc., 2018 Page 1 of 1 ADDITIONAL INSURED – DESIGNATED
PERSON OR ORGANIZATION
This endorsement modifies insurance provided under the following:
COMMERCIAL GENERAL LIABILITY COVERAGE PART
SCHEDULE
Name Of Additional Insured Person(s) Or Organization(s):
Information required to complete this Schedule, if not shown above, will be shown in the Declarations.
A. Section II – Who Is An Insured is amended to
include as an additional insured the person(s) or
organization(s) shown in the Schedule, but only
with respect to liability for "bodily injury", "property damage" or "personal and advertising injury"
caused, in whole or in part, by your acts or
omissions or the acts or omissions of those acting
on your behalf:
1. In the performance of your ongoing operations;
or
2. In connection with your premises owned by or
rented to you.
However:
1. The insurance afforded to such additional
insured only applies to the extent permitted by
law; and
2. If coverage provided to the additional insured is
required by a contract or agreement, the
insurance afforded to such additional insured
will not be broader than that which you are
required by the contract or agreement to
provide for such additional insured.
B. With respect to the insurance afforded to these
additional insureds, the following is added to
Section III – Limits Of Insurance:
If coverage provided to the additional insured is
required by a contract or agreement, the most we
will pay on behalf of the additional insured is the
amount of insurance:
1. Required by the contract or agreement; or
2. Available under the applicable limits of
insurance;
whichever is less.
This endorsement shall not increase the
applicable limits of insurance.
ANY PERSON OR ORGANIZATION WITH WHOM YOU AGREED, OR ARE REQUIRED, BY CONTRACT OR AGREEMENT, TO PROVIDE ADDITIONAL INSURED STATUS. 027-78-4865
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INSURED:
POLICY #: POLICY PERIOD: TO:
Parking Concepts, Inc. 027784865 06/01/2027 06/01/2026
ADDITIONAL INSURED - OWNERS, LESSEES OR
CONTRACTORS - COMPLETED OPERATIONS
This endorsement modifies insurance provided under the following:
COMMERCIAL GENERAL LIABILITY COVERAGE PART
SCHEDULE
Name Of Additional Insured Person(s)
Or Organization(s) Location And Description Of Completed Operations
COMMERCIAL GENERAL LIABILITY
CG 20 37 12 19
THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY.
PRODUCTS/COMPLETED OPERATIONS LIABILITY COVERAGE PART
POLICY NUMBER:
Information required to complete this Schedule, if not shown above, will be shown in the Declarations.
A. Section II – Who Is An Insured is amended to
include as an additional insured the person(s) or
organization(s) shown in the Schedule, but only
with respect to liability for "bodily injury" or
"property damage" caused, in whole or in part,
by "your work" at the location designated and
described in the Schedule of this endorsement
performed for that additional insured and
included in the "products-completed operations
hazard".
However:
1. The insurance afforded to such additional
insured only applies to the extent permitted
by law; and
2. If coverage provided to the additional
insured is required by a contract or
agreement, the insurance afforded to such
additional insured will not be broader than
that which you are required by the contract
or agreement to provide for such additional
insured.
B. With respect to the insurance afforded to
these additional insureds, the following is
added to Section III – Limits Of Insurance:
If coverage provided to the additional insured is
required by a contract or agreement, the most
we will pay on behalf of the additional insured
is the amount of insurance:
1. Required by the contract or agreement; or
2. Available under the applicable limits of
insurance;
whichever is less.
This endorsement shall not increase the
applicable limits of insurance.
Page of 1 1 Insurance Services Office, Inc., 2018 CG 20 37 12 19 027-78-4865
ALL OWNERS, LESSEES OR CONTRACTORS
WITH WHOM YOU AGREED, OR ARE
REQUIRED, BY CONTRACT OR AGREEMENT,
TO PROVIDE ADDITIONAL INSURED STATUS.
PER CONTRACT OR AGREEMENT.