8C
Date: September 1, 2026
To: Honorable Mayor and Members of the City Council
From: Kimberly Turner, Transit Director
By: Ryan Plumb, Senior Business Manager | [email protected] Subject: Transit – Approve Second Amendment to Contract Services Agreement C2024-170 with Hometown Manufacturing, Inc. for the Purchase of Ten (10) Rubber Wheel Trolleys. Expenditure: None.
RECOMMENDATION
Recommendation of the Transit Director that City Council approve the Second Amendment to Contract Services Agreement C2024-170 with Hometown Manufacturing Inc. of Crandon, WI, for the purchase and delivery of ten (10) rubber wheel trolley buses and to extend the term to December 31, 2026.
FUNDING
None required.
DISCUSSION
On August 20, 2024, Your Honorable Body approved a Contract Services Agreement with Hometown Manufacturing Incorporated to manufacture and delivery ten (10) rubber wheel trolleys to serve as the primary vehicles for a new Transit service in Torrance. The first prototype vehicle was delivered in late 2024, at which time the Agency identified additional modifications needed for the remaining vehicles. The additional modification work resulted in further delays to the vehicle delivery schedule.
To date, seven (7) trolleys have been delivered, with the remaining three (3) vehicles currently in production. Hometown Manufacturing, Inc. has requested additional time to complete delivery of the remaining trolley buses due to supplier delays, parts shortages, and extended lead times for required components. To allow sufficient time for delivery of the remaining vehicles and completion of all associated project and funding requirements, Transit is requesting that the contract term be extended to December 31, 2026.
ATTACHMENT 1 of this item is the Second Amendment to Contract C2024-170 which extends the contract term to December 31, 2026. All other terms and conditions of the contract remain the same.
ATTACHMENTS
1. Second Amendment to Contract Services Agreement C2024-170
2. First Amendment to Contract Services Agreement C2024-170 1 1
SECOND AMENDMENT TO AGREEMENT (C2024-170)
This Second Amendment to Contract Services Agreement C2024-170 (“Second Amendment”) is made and entered into as of August 31, 2026 (the “Effective Date”), by and between the CITY OF TORRANCE, a municipal corporation (“CITY”), and Hometown Manufacturing Inc., a Wisconsin corporation (“CONTRACTOR”).
RECITALS:
A. The CITY previously awarded a Contract Services Agreement to the CONTRACTOR to fabricate, assemble and deliver ten (10) gasoline powered trolley vehicles.
B. The CITY utilized options from the State of Georgia’s Department of Administrative Services to procure these ten (10) vehicles.
C. The Agreement entered into was for an amount not-to-exceed $3,061,083.26 ($3,001,062.02 with 2% Project Contingency of $60,021.24, or $306,108.33 per vehicle) with a term of August 20, 2024, to August 31, 2025.
D. On August 31, 2025, due to unforeseen project delays, the CITY and CONTRACTOR entered into the First Amendment to the Agreement (the “First Amendment”) to extend the term to August 31, 2026.
E. Due to continued unforeseen project delays, the CITY and CONTRACTOR now wish to extend the term of the Agreement to December 31, 2026.
AGREEMENT:
1. Paragraph 2, entitled “TERM”, is amended to read in its entirety as follows:
“Unless earlier terminated in accordance with Paragraph 4 below, this Agreement will continue in full force and effect from the Effective Date through December 31, 2026.”
2. In all other respects, the Agreement between the CITY and CONTRACTOR is ratified, reaffirmed, and remains in full force and effect. [ Signatures on following page ]
2 ATTACHMENT 1
2 CITY OF TORRANCE, Hometown Manufacturing, Inc.,
a municipal corporation a Wisconsin corporation
By:
Sharon Kalani, Mayor Kristina Pence-Dunow, CEO
Hometown Manufacturing, Inc.
ATTEST:
_________________________________
Rebecca Poirier, MMC
City Clerk
APPROVED AS TO FORM:
PATRICK Q. SULLIVAN
City Attorney
By:
Jennifer Vicente Guerrero
Deputy City Attorney
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