City Council Agenda
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Memo to: |
Manteca City Council |
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From: |
Brandy Clark, Director of Parks, Recreation, and Transit |
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Prepared by: |
Juan Portillo, Public Works Manager - Transit |
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Date: |
May 12, 2026 |
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Subject: |
Approve Amendment No.1 to Contract Services (C2023-55) with MTM Transit, LLC |
Recommendation:
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Adopt a resolution approving Amendment No. 1 to Contract Services (C2023-55) with MTM Transit, LLC to extend the term for one (1) additional year and increase the not-to-exceed compensation by $2,938,685.42 for a total not-to-exceed contract amount of $9,958,315.89; authorizing a budget appropriation of $100,000 in the Federal Transit Management Fund (Fund 610); and authorizing the City Manager or designee to execute the amendment and take all necessary actions to implement the agreement.
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Background:
On April 18, 2023, the City Council approved a Transit Operations Agreement with MTM Transit, LLC to operate the City of Manteca Transit system. The agreement was fully executed May 2, 2023, with in initial term of thirty-six (36) months and includes two (2) one-year optional extensions. The base term is set to expire on June 30, 2026 with a total not-to-exceed amount of $6,919,630.47.
Since execution of the agreement, the City has experienced increased demand for Americans with Disabilities Act (ADA) Paratransit services. This growth has resulted in higher trip volumes and expanded service hours, leading to increased operating costs under the existing agreement. An additional $100,000 in compensation is required to cover the increased service levels and associated costs through June 30,2026.
Amendment No. 1 will extend the agreement for one (1) additional year, through June 30, 2027, and increase the not-to-exceed compensation by $2,938,685.42 for the extension period. This amendment represents the first of the two (2) optional one-year extensions authorized under the original agreement.
Staff recommends approval of Amendment No. 1 to ensure continuity of transit services and to meet the growing demand for ADA Paratransit services within the community.
Fiscal Impact:
Manteca Transit operations are funded through a combination of Federal Transit Administration (FTA) funds and Transportation Development Act (TDA) Local Transportation Funds (LTF), generally on a 50/50 basis.
Approval of Amendment No. 1 will increase the contract amount for FY 2025-26 by $100,000 to address increased ADA Paratransit service levels. A corresponding budget appropriation of $100,000 is requested in the Federal Transit Management Fund (Fund 610).
Funding for the one-year extension period through June 30, 2027, will be incorporated into Fiscal Year 2026-27 budget within the Federal Transit Management Fund (Fund 610).
There is no General Fund impact.
Documents Attached:
1. Attachment 1 - Resolution
2. Attachment 2 - Agreement C2023-55
3. Attachment 3 - Amendment No. 1