To: MAYOR AND CITY COUNCIL
From: ELIZABETH HAUSE, COMMUNITY SERVICES DIRECTOR
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ADOPT BY 4/5THS VOTE AND BY TITLE ONLY RESOLUTION NO. CC-2412-121, A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF REDONDO BEACH, CALIFORNIA, TO AUTHORIZE A BUDGET MODIFICATION FOR FISCAL YEAR 2024-2025 TO ALLOCATE TO AND APPROPRIATE PROPOSITION A LOCAL RETURN TRANSPORTATION FUNDS IN THE AMOUNT OF $168,000 TO THE TRANSIT FUND
APPROVE THE THIRD AMENDMENT TO THE AGREEMENT WITH PARKING CONCEPTS, INC. FOR OPERATIONS AND MAINTENANCE OF THE BEACH CITIES TRANSIT AND WAVE DIAL-A-RIDE SYSTEM FOR AN UPDATED ANNUAL TOTAL NOT TO EXCEED AMOUNT OF $3,564,833
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EXECUTIVE SUMMARY
On May 5, 2020, the City Council approved an Agreement with Parking Concepts, Inc. dba Transportation Concepts, to manage the Beach Cities Transit (BCT) fixed-route and dial-a-ride systems as the contract operator. On May 16, 2023, the City Council approved the first amendment extending the Agreement from July 1, 2023 through June 30, 2025, and increasing the hourly revenue service rate and monthly fixed cost fee for FY 2023-24 based on the December 2022 Consumer Price Index (CPI) of 4.9%. On May 21, 2024, the City Council approved the second amendment to the Agreement which increased the hourly revenue service rate and monthly fixed cost fee for FY 2024-25 based on the December 2023 Consumer Price Index (CPI) of 3.5%.
Staff recommends that the City Council adopt a resolution authorizing a budget modification for FY 2024-25 to appropriate additional Proposition A Local Return transportation funds in the amount of $168,000 and approve the proposed third amendment to the Agreement with Parking Concepts to increase the hourly revenue service rate to $58.27, resulting in an additional expenditure of $168,000 for the period January 1, 2025 to June 30, 2025, and a new annual amount of $3,564,833, excluding Special Transportation Service costs.
BCT services are funded by dedicated transportation restricted funds and receive no General Fund allocation.
BACKGROUND
The BCT system includes the WAVE senior/disabled dial-a-ride, fixed route lines 102 and 109, the dispatch and scheduling functions, maintenance of BCT’s 20-vehicle fleet, along with management, oversight, and data/fiscal reporting for BCT operations and vehicle maintenance.
BCT services are funded through dedicated transportation resources, including the Municipal Transit Operator Formula Allocation Procedure (FAP), Local Return Proposition A funds, BCT fares, and bus pass sales. BCT does not rely on or receive funding from the City’s General Fund.
Recent increases in the minimum hourly wage to $20.00 in the fast-food industry have created competitive challenges in compensating BCT bus drivers. In response to the need to retain skilled BCT bus operators, the City and contracted transit operator (Parking Concepts) desire to increase the hourly wage rate by $4.00 to establish a starting wage of $24.00 per hour. The proposed hourly rate of $24.00 per hour would be effective January 1, 2025, resulting in an additional expenditure of $168,000 for the period January 1, 2025 to June 30, 2025, which would be funded through the increased Proposition A Local Return money appropriation.
COORDINATION
The third amendment to the Agreement has been approved as to form by the City Attorney’s Office.
FISCAL IMPACT
BCT services are funded through dedicated transportation resources, including the Municipal Transit Operator Formula Allocation Procedure (FAP), Local Return Proposition A funds, BCT fares, and bus pass sales, and require no General Funds.
The proposed third amendment to the Agreement would increase the hourly revenue service rate to $58.27. This change would be effective January 1, 2025, resulting in an additional expenditure of $168,000 for the period January 1, 2025 to June 30, 2025 and a new annual amount of $3,564,833, excluding Special Transportation Service costs. Proposition A Local Return Funding is available to cover the proposed increase.
FY 2024-25 Funding FY 2024-25 Expenditures
Transit Fund $3,396,833.28 Transportation Concepts $3,396,833.28
Third Amendment 168,000.00 Third Amendment 168,000.00
Total $3,564,833.28 Total $3,564,833.28
APPROVED BY:
Mike Witzansky, City Manager
ATTACHMENTS
• Reso - No. CC-2412-121 authorizing a Budget Modification for FY 2024-25
• Agmt - Proposed Third Amendment to the Agreement with Parking Concepts, Inc. d/b/a Transportation Concepts
• Agmt - Second Amendment to the Agreement with Parking Concepts, Inc. d/b/a Transportation Concepts, May 21, 2024
• Agmt - First Amendment to the Agreement with Parking Concepts, Inc. d/b/a Transportation Concepts, May 16, 2023
• Agmt - Beach Cities Transit Management Agreement, May 5, 2020
• Insurance - Parking Concepts, Inc. d/b/a Transportation Concepts