REQUEST FOR CITY COUNCIL ACTION
SUBMITTED TO: Honorable Mayor and City Council Members
SUBMITTED BY: Eric G. Parra, Interim City Manager
VIA: Chau Vu, Director of Public Works
PREPARED BY: Sarah Whitecotton, Management Aide
Subject:
title
Approve two-year service agreement for downtown shuttle service provider Circuit Transit, Inc. for a not to exceed amount of $1,535,426
body
Statement of Issue:
The electric shuttle service, Circuit Transit, has been in place for two and a half years to lessen vehicle congestion in the downtown area. On June 26, 2023, City Council agreed to a general fund allocation of $175,000 to continue the Circuit shuttle service by amending their contract to allow for an additional six months through December 31, 2023. City Council also directed staff to seek grant funding to continue the service past December 31 without the need for further general fund support. Staff has secured this funding and is hereby presenting the Circuit contract and funding sources to continue the shuttle service for an additional two years.
Financial Impact:
The two-year contract is for a not-to-exceed amount of $1,535,426 and will be primarily funded through grants with the Orange County Transit Authority (OCTA) in the amount of $806,240 (Fund 1263) and the Air Quality Management District (AQMD) Mobile Source Air Pollution Reduction Committee (MSRC) in the amount of $279,186 (Fund 1291). The grants will be supplemented with State earmarks from Senator Dave Min’s Office in the amount of $350,000 (Fund 1292) and In-Lieu Parking Fee funds in the amount of $100,000 (Fund 308).
Recommended Action:
recommendation
A) Approve the two-year service contract with Circuit Transit, Inc. with a not-to-exceed amount of $1,535,426; and
B) Approve a budget appropriation in the amount of $806,240 for the OCTA Project V grant funds into account 126390001.69505; and
C) Grant the City Manager the authority to execute the cooperative agreement between the City of Huntington Beach and Orange County Transit Authority; and
D) Approve a budget appropriation in the amount of $100,000 from the In-Lieu Parking fund to 30885101.69505
end
Alternative Action(s):
Do not approve the recommended actions, and direct staff accordingly.
Analysis:
Circuit Transit serves downtown residents, workers, and visitors by providing an alternative mobility option to travel throughout downtown and is available upon demand using Circuit’s smartphone app. The current Circuit agreement is effective through December 31, 2023 with the agreement history below:
|
Agreement |
Term |
Amount |
|
Original |
July 12, 2021 - December 12, 2021 |
$200,000 |
|
Amendment No. 1 |
December 13, 2021 - June 30, 2022 |
$120,000 |
|
Amendment No. 2 |
July 1, 2022 - June 30, 2023 |
$473,000 |
|
Amendment No. 3 |
July 1, 2023 - August 31, 2023 |
$15,000 |
|
Amendment No. 4 |
September 1, 2023 - December 31, 2023 |
$60,000 |
In an effort to continue the service without impact to the general fund, City Council directed staff to obtain alternate funding sources during the June 26, 2023 meeting. City staff is working towards the completion of grant funding agreements with the OCTA and AQMD’s Mobile Source Air Pollution Reduction Committee.
A condition of the new grant funding sources is obtaining current bids for the service. Staff issued a request for proposals for the downtown shuttle service in July 2023 with bids due in August 2023. Circuit Transit, Inc.’s proposal was rated by a panel as the most qualified firm; therefore, a contract was negotiated to include a term of 2 years and a not-to-exceed amount of $2,000,000. The new contract has a greater service area and additional electric vehicles (from 4 to 7) to provide a higher level of service and lower response time for calls in the service area.
The OCTA grant cooperative agreement is currently being drafted by OCTA staff. City staff is in possession of a “Notice to Proceed” funding letter confirming their intention to award the $806,240 grant upon execution of the cooperative agreement. Staff requests permission to appropriate the funds based on the funding letter and permission be granted to the City Manager to execute the cooperative agreement between the City of Huntington Beach and OCTA.
The AQMD/MSRC grant agreement is also being drafted by their staff. City staff will bring the funding agreement back to council for approval and appropriation prior to the beginning of fiscal year 2024/25.
Senator Min allocated $350,000 towards the Circuit Transit, Inc. program in the State of California for fiscal year 2023/24 budget, and City staff is working with the State to obtain the funding. If necessary, staff will return to council for the appropriation of the funds.
Parking In-Lieu fees are collected as development occurs in the City’s downtown area. Fees are used to create additional parking opportunities, such as valet, re-striping, shuttle, and trolley programs, or for construction of new parking facilities. Staff has identified these funds as an appropriate funding source for the Circuit Transit, Inc. service agreement and will supplement grant funds while awaiting further grant and state funding appropriations.
The use of non-grant funding sources will be kept to a minimum, as the Circuit Transit, Inc. service agreement also includes a revenue sharing component. The City will be credited with 50% of the net advertising revenue as well as 80% of fare revenue on a monthly basis to offset overall costs.
Environmental Status:
This action is not subject to the California Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) (the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment) and 15060(c)(3) (the activity is not a project as defined in Section 15378) of the CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3, because it has no potential for resulting in physical change to the environment, directly or indirectly.
Strategic Plan Goal:
Non Applicable - Administrative Item
For details, visit www.huntingtonbeachca.gov/strategicplan <http://www.huntingtonbeachca.gov/strategicplan>.
Attachment(s):
1. Circuit Service Agreement
2. OCTA Funding Letter
3. MSRC Award Letter
4. Presentation