City Administrative Officer (CAO) report relative to a proposed Fifth Amendment to the contract with Ilium Associates, Inc., for transit marketing, customer outreach, support services, and public right-of-way sign fabrication and installation services.
Summary
The City Council is considering a Fifth Amendment to Contract No. C-128772 with Ilium Associates, Inc. for transit marketing, customer outreach, support services, and public right-of-way sign fabrication and installation. This amendment extends the contract term for one year (September 1, 2025, through August 31, 2026), with an option for an additional 12 months (through August 31, 2027) on a month-to-month basis. It also increases the contract ceiling by $6,581,137, bringing the new total not-to-exceed amount to $32,313,926.
This extension is crucial to ensure uninterrupted operation of LADOT's Customer Service Center, Bus Sign Maintenance, and Transit Technology Services while the Department transitions the scope of work into four separate agreements with different vendors. The original comprehensive contract is being broken down into specialized RFPs to enhance contracting flexibility and broaden the bidder pool.
Transition Plan for Services:
- Transit Marketing Services: Already executed with Pulsar Advertising, Inc. (September 2025).
- Enhanced Transit Technology: RFP released February 2024, execution anticipated November 2025.
- Transit Customer Service Center & Cityride Program Administration: RFP released March 2024, execution anticipated Q2 2026.
- Transit Facilities Maintenance & Management: RFP to be released Q4 2025, execution anticipated October 2026.
The amendment also updates the contractor's hourly rates for various positions for Fiscal Years 2025/2026 and 2026/2027. There is no General Fund impact, as the contract is funded by the Proposition A Local Transit Assistance Fund.