City updates senior shuttle service contract

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Seal Beach on Monday, July 27, amended its contract for a senior shuttle service from the Pier to the Shops at Rossmoor.

The amendment to the contract with Parking Concepts, Inc., doing business as Transportation Concepts, increased the maximum cost of the agreement to $155,000 for the final one-year extension of the contract.

The vote was unanimous.

This was a Consent Calendar item. The council doesn’t talk about consent items unless a council member pulls one for individual discussion. Nothing was pulled from this week’s Consent Calendar.

Background

“On May 24, 2021, the City of Seal Beach (City) entered into a Professional Services Agreement (PSA) with Parking Concepts, Inc., dba Transportation Concepts (Parking Concepts), to provide a shuttle service for seniors,” according to Community Services Coordinator Anthony Nguyen.

“This shuttle service runs from the Seal Beach Pier to the Shops at Rossmoor and operates from 9:00 A.M. to 4:00 P.M., Monday through Friday. Residents who are 60 years or older can register with the Community Services and Recreation Division to ride the shuttle. Currently, over 1,800 residents are registered to participate in the City’s Senior Transportation Program, and the shuttle recorded an average of 1,500 rides per month,” Nguyen wrote.

“The initial agreement awarded to Parking Concepts was to provide Senior Transportation Services for a three-year term, with the option of extending the term for two (2) additional one-year terms. The original three-year term had a not-to-exceed amount of $420,000, and each additional one-year extension had a not-to-exceed amount of $140,000. The original term expired on May 24, 2024, and the City exercised both extensions. The final extended term expired on May 24, 2026,” Nguyen wrote.

“The hourly cost listed in this original agreement included a Variable Revenue Hour (VRH) rate that has been raised incrementally every year to account for the changes in the cost of living and hourly wage of the shuttle drivers. This VRH rate did not negatively affect the original three-year term, and the final cost remained below the not-to-exceed amount of $420,000,” Nguyen wrote.

But the cost of the extension in 2025-26 was above the maximum, according to the staff report.

“The final cost for this extension is $154,958.88, which is $14,958.88 over the not-to-exceed amount,” Nguyen wrote.

The April and May invoices have not been paid, according to the staff report. Seal Beach staff needed the council’s approval to amend the contract before the contractor can be paid, according to the staff report.