City Council Report
City Council Meeting: January 11, 2022
Agenda Item: 3.C
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To: Mayor and City Council
From: Edward F King, Director, Department of Transportation, Transit Planning & Performance
Subject: Approval of Extension of Contract with Lyft for Mobility on Demand Every Day (MODE) Service for Santa Monica Seniors and People with Disabilities Recommended Action
Staff recommends that the City Council authorize the City Manager to negotiate and execute a second modification to agreement #10585 with Lyft, Inc for Mobility on Demand Every Day (MODE) services. This will result in a change from three option years to four option years for a total contract term of five years and will not exceed the budget of $2,400,000 authorized by Council on 11/28/2017.
Summary
Since 2017, the Big Blue Bus (BBB) has partnered with Lyft to operate the Mobility on Demand Every Day (MODE) service, previously known as Dial-A-Ride. During that time, the program has proven exceedingly popular and on September 28, 2021, Council awarded a new contract to Lyft to operate Mobility on Demand Every Day (MODE) service with additional services. Negotiations between the parties for the new contract are continuing, and there are a few remaining issues that will take time to resolve. The current Lyft contract expires February 28, 2022. To ensure continuity of service to our seniors and residents with disabilities, staff recommends amending the current Lyft contract to provide one additional option year to the current 4-year contract authorized November 28, 2017. The additional option year requires no additional funding authority and enables BBB staff to continue MODE service levels until contract negotiations with Lyft are concluded and the new service model provisions can be implemented. 2 of 3
Discussion
Since 2020, MODE ridership has significantly increased over the last 12 months, and it is critical to continue service to MODE customers with our current business model.
Under the existing operating structure, Lyft operates the on-demand component of MODE using mostly sedans, while another vendor, MV Transportation, operates the Wheelchair Accessible Vehicle (WAV) component of MODE. To maintain the existing service model for another year, staff plans to also extend MV Transportation’s contract by one year by exercising their third option year (of four) under their current contract.
In anticipation of the existing contract with Lyft expiring in early 2022 and opportunities to streamline operations and improve the customer experience, staff issued Request for Proposal (RFP) #285 for Turnkey Demand Response Transportation Services (i.e., MODE) on February 22, 2021. After an extensive competitive procurement process, on September 28, 2021, Council approved staff’s recommendation to award the RFP to Lyft and authorize the City Manager to negotiate and execute a new contract with Lyft to operate MODE service for a minimum of two years.
Contract negotiations for the new contract have been delayed by issues raised by both Lyft and the City, including issues related to the COVID-19 pandemic. As a result, staff recommends adding one additional option year to Lyft’s existing contract, while staff and Lyft continue to work on resolutions for the new contract. This allows for continuity of service to our senior population and people with disabilities who are dependent on our services, provides time for resolution of the issues, and allows for a careful, low impact transition to the new service model for this vulnerable population.
Past Council Actions
Meeting Date Description
11/28/2017 Award Contract for Dial-A-Ride Services (On-Demand Transportation) to Lyft, Inc.
06/25/2019 Big Blue Bus Mobility on Demand Every Day (MODE) Program Updates 09/28/2021 Award Lyft, Inc. contract for Turnkey Demand Response Transportation Services (MODE)
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Financial Impacts and Budget Actions
The additional option year for Lyft would result in a total contract term of five years. As of September 2021, expenditures for contract #10585 with Lyft amounted to $791,357.
The not-to-exceed authorized budget under the existing contract is $2,400,000 and it is not anticipated that this threshold will be reached if City Council approves extending Lyft’s contract to February 2023. Therefore, there is no immediate financial impact or budget action necessary as a result of the recommended action. The total amount not to exceed for this contract will not change. Funds for this expense are budgeted in 60600006.55001B.
Prepared By: Alfredo Torales, Strategic Transit Planner Approved Forwarded to Council
Attachments:
A. Oaks Form Lyft