SR 01-11-2022 3C
City Council Report
City Council Meeting: January 11, 2022
Agenda Item: 3.C
1 of 3
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.
3.C
Packet Pg. 35
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)
3.C
Packet Pg. 36
3 of 3
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
3.C
Packet Pg. 37
CITY OF SANTA MONICA
OAKS INITIATIVE DISCLOSURE FORM
In order to facilitate compliance with the requirements of the Oaks Initiative, the City
compiles and maintains certain information. That information includes the name of any
person or persons who is seeking a public benefit. If the public benefit is sought by
an entity, rather than an individual person, the information includes the name of every
person who is: (a) trustee, (b) director, (c) partner, (d) officer, or has (e) more than a ten
percent interest in the entity.
Public benefits include:
1. Personal services contracts in excess of $25,000 over any 12-month period;
2. Sale of material, equipment or supplies to the City in excess of $25,000 over a 12-
month period;
3. Purchase, sale or lease of real property to or from the City in excess of $25,000
over a 12- month period;
4. Non-competitive franchise awards with gross revenue of $50,000 or more in any
12-month period;
5. Land use variance, special use permit, or other exception to an established land
use plan, where the decision has a value in excess of $25,000;
6. Tax abatement, exception, or benefit of a value in excess of $5,000 in any 12-
month period; or
7. Payment of cash or speci of a net value to the recipient of $10,000 in any 12-
month period.
Name(s) of persons or entities receiving public benefit:
Name(s) of trustees, directors, partners, and officers:
Name(s) of persons with more than a 10% equity, participation, or revenue interest:
Prepared by: ____________________________Title: __________________________
Signature: ______________________________________ Date: ________________
Email: ____________________________________ Phone: ____________________
FOR CITY USE ONLY:
Bid/PO/Contract # ____________________________ Permit # ___________________________
3.C.a
Packet Pg. 38 Attachment: Oaks Form Lyft (4806 : Extension of Contract with Lyft for MODE Service)