HomeMy WebLinkAbout2026-04-14 - AGENDA REPORTS - MV TRANSPORTATION TRANSIT OPERATIONS AND MAINT CONTR EXTAgenda Item• 14
CITY OF SANTA CLARITA
.` AGENDA REPORT
CONSENT CALENDAR
CITY MANAGER APPROVAL:
DATE: April 14, 2026
SUBJECT: MV TRANSPORTATION OPERATION AND MAINTENANCE
CONTRACT EXTENTION OF THE CITY'S TRANSIT SERVICE
SYSTEM
DEPARTMENT: Economic Development
PRESENTER: Adrian Aguilar
RECOMMENDED ACTION
City Council:
Authorize the remaining two-year contract extension with MV Transportation, Inc.,
extending the contract through June 30, 2028, and authorize an increased expenditure
authority in the amount of $3,190,106 for Fiscal Year 2026-27, in an annual amount not to
exceed $32,056,649, and an additional four percent, or $1,282,266 for FY 2027-28, in an
annual amount not to exceed $33,338,915.
2. Appropriate ongoing funds from the Transit Fund (Fund 700) starting Fiscal Year 2026-27
in the amount of $1,339,485 to Transit Local Bus Service Expenditure Account (7003700-
516116); $540,222 to Transit Dial -A -Ride Service Expenditure Account (7003700-516117);
$391,736 to Transit Commuter Bus Service Expenditure Account (7003700-516118);
$666,891 to Transit Contract Administration Expenditure Account (7003700-516119); and
$251,772 to Transit GO Transit Expenditure Account (7003700-516121).
3. Adjust the Fiscal Year 2026-27 billing rates for MV Transportation, Inc., as follows: local
and special services to $108.48 per revenue hour, Dial -A -Ride $55.80 per trip, commuter
services $108.48 per revenue hour, on demand $93.69 per revenue hour, fuel $13.78 per
revenue hour, and administration fee $563,503 per month, and authorize an additional four
percent increase for FY 2027-28.
4. Authorize the City Manager or designee to execute all contracts and associated documents,
subject to City Attorney approval.
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BACKGROUND
On May 8, 2018, the City Council awarded a four-year contract to MV Transportation, Inc.,
(MV) for the operation and maintenance of the City of Santa Clarita's (City) transit service, with
three optional two-year extensions. The City utilized the first two-year extension through
June 30, 2024.
On December 12, 2023, the City Council authorized an amendment to the contract to increase
the billing rates and contractual limit in response to negotiations completed between MV and the
bus drivers' union, Teamsters Local 572. The City utilized the second two-year extension
through June 30, 2026.
As a result of the negotiations between MV and the union in 2023, MV signed new labor
agreements that included a 10 to 13 percent increase in wages for represented staff to become
effective in August 2026. As a result of this, the City negotiated with MV regarding contract
increases for the third two-year extension, and staff recommend awarding an 11 percent increase
for Fiscal Year 2026-27, followed by a 4 percent increase for FY 2027-28.
For FY 2026-27, the contract will be increased by the following amounts for specified types of
service, in accordance with billing rates:
Service
FY 2025-26
Contract/Budget
FY 2026-27
Proposed Contract
Adjustment
FY 2027-28
Proposed Contract
Adjustment
Local Bus
$ 12,042,712
$ 13,382,197
$ 13,917,485
Dial -A -Ride
$ 4,911,118
$ 5,451,340
$ 5,669,394
Commuter Bus
$ 3,561,239
$ 3,952,975
$ 4,111,094
GO! Transit
$ 2,288,828
$ 2,540,600
$ 2,642,224
Contract Administration
$ 6,062,646
$ 61729,537
$ 6,998,718
Annual Contract Total
$ 28,866,543
$ 32,056,649
$ 33,338,915
Staff is preparing to release a Request for Proposal for the operation and maintenance of the
City's transit system in summer 2027, with the City Council tentatively scheduled to consider its
award in early 2028.
ALTERNATIVE ACTION
Other action as determined by the City Council.
FISCAL IMPACT
The Transit Financial Forecast projects that adequate funds in the Transit Fund (Fund 700) will
be available to support a $3,190,106 increase to the base budget in FY 2026-27, as well as a 4
percent increase in FY 2027-28, contingent upon appropriations of funds by the City Council
during each year's annual budget process.
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