City Council Memorandum
TO: HONORABLE MAYOR AND CITY COUNCIL DATE: JANUARY 13, 2026 FROM: PARKS, RECREATION AND COMMUNITY WARDS: ALL
SERVICES DEPARTMENT
SUBJECT: FIRST AMENDMENT TO THE SOFTWARE AS A SERVICE MASTER AGREEMENT WITH ECOLANE USA, INC., TO AMEND THE SCOPE OF WORK TO INCLUDE ADDITIONAL SERVICES AND INCREASE COMPENSATION IN THE AMOUNT OF NOT TO EXCEED $111,396.40, FOR NOTIFICATION ADD-ON FOR A TERM OF THREE YEARS AND UP TO AN ADDITIONAL $10,000 FOR OPTIONAL TRAINING AS NEEDED PER ANNUM ISSUE:
Approve the First Amendment to the Software as a Service Master Agreement with Ecolane USA, Inc., to amend the scope of work to include additional services and increase compensation in the amount of not to exceed $111,396.40, for notification add-on for a term of three years and up to an additional $10,000 for optional training as needed per annum.
RECOMMENDATIONS:
That the City Council:
Approve the First Amendment to the Software as a Service Master Agreement with Ecolane USA, Inc. to amend the scope of work to include additional services and increase compensation in the amount of not to exceed $111,396.40, for notification add-on for a term of three years and up to an additional $10,000 for optional training as needed, per annum; and Authorize the City Manager, or designee, to execute the First Amendment to the Software as a Service Master Agreement with Ecolane USA, Inc., including making minor and non-substantive changes and including the annual renewals as set forth in the agreement.
BACKGROUND:
The City of Riverside Special Transportation Division operates the Riverside Connect service and receives annual funding allocations from various federal, state, and local sources administered by both the Riverside County Transportation Commission (RCTC) and the Federal Transit Administration (FTA). The funds are used to support 100 percent of the operating budget, including employee salaries and benefits, as well as all capital projects.
The Mills-Alquist-Deddeh Act (SB 325) was enacted by the California Legislature to improve existing public transportation services and encourage regional transportation coordination. Known as the Transportation Development Act (TDA) of 1971, this law provides funding to be allocated to transit and non-transit related purposes that comply with regional transportation plans. The TDA provides two funding sources:
1. Local Transportation Fund (LTF), which is derived from a ¼ cent of the general sales tax collected statewide.
2. State Transit Assistance (STA) fund, which is derived from the statewide sales tax on diesel fuel.
The State Board of Equalization, based on sales tax collected in each county, returns the general sales tax revenues to each county’s LTF. The STA funds are appropriated by the Legislature to the State Controller’s Office; that Office then allocates the tax revenue, by formula, to planning agencies and other selected agencies. The Statute requires 50% of STA funds to be allocated according to population and 50% be allocated according to operator revenues from the prior fiscal year.
DISCUSSION:
On August 20, 2024, City Council approved the original procurement per Purchasing Resolution No. 24101, Section 508, which states, “Contracts procured through Formal Procurement shall be awarded by the Awarding Entity to the Lowest Responsive and Responsible Bidder, except that…. (c) Contracts procured through Formal Procurement for Services or Professional Services, where a Request for Proposals or Request for Qualification was used to solicit Bids, shall be awarded by the Awarding Entity in accordance with the evaluation criteria set forth in the Request for Proposals or Request for Qualifications.” On August 29, 2024, Special Transportation entered into an agreement with Ecolane USA, Inc. to procure a hosted, web-based scheduling software and video surveillance system for its paratransit service.
Seniors and individuals with disabilities in Riverside would benefit from an automated system that provides reminders of their scheduled trips with Riverside Connect. Ecolane software includes an optional Interactive Voice Response (IVR) module that automatically calls riders with trip reminders and offers the option to cancel if needed. Special Transportation requests to add this service option for the full term of the Master Agreement.
Special Transportation also seeks to add the option for customized training provided by Ecolane USA, Inc., as needed, to help drivers, dispatchers, schedulers, and supervisors become more proficient with the system. The original Master Agreement included onsite training only during the initial implementation process.
Purchasing Resolution 24101, Section 1104 states, “Unless otherwise specifically authorized by the Awarding Entity, Change Orders which cumulatively exceed the following will require Awarding Entity approval…. (a) 10% of the original contract price for Contracts and/or Purchase Orders for Goods Services and Professional Services up to $100,000 or for Contracts and/or Purchase Orders of Construction or Design-Build Services up to $50,000; additional percentage authority may be authorized by the Manager up to $100,000 or as otherwise specified for in the City Charter.” The Purchasing Manager concurs that the recommended actions are in accordance with Purchasing Resolution 24101.
FISCAL IMPACT:
The total fiscal impact of this action is up to $121,396.40 per year for the three-year term of the agreement, which includes the additional scope of work in the amount of $111,396.40 and up to an additional $10,000 for training, billed on an as-needed basis. The action is fully funded with state grants. Sufficient funds are budgeted and available in the following expenditure accounts as listed in the table below.
Table 1. Project Funding
Fund
Program
Account
Amount
Special Transit
Schedule SW/Video Surveillance
9350400-425700
$48,798.40
Ecolane Add-On
9354720-425700
$62,598.00
Professional Services
5200200-421000
$10,000.00
Total
$121,396.40
Prepared by: Ron Profeta, Transit Manager
Approved by: Pamela M. Galera, Parks, Recreation and Community Services Director Certified as to
Availability of funds: Julie Nemes, Interim Finance Director Approved by: Kris Martinez, Assistant City Manager
Approved as to form: Rebecca McKee-Reimbold, Interim City Attorney Attachment: First Amendment to Master Agreement
Ecolane USA, Inc. First Amendment to Master Agreement. ● Page 3