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San Gabriel awards first-year, $817,258 RightSG operations contract to LAZ Parking; city will handle daytime call center

4148090 · June 18, 2025
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Summary

Council selected LAZ Parking California LLC to operate the city's RightSG microtransit service in a contract valued at $817,258 for year one, a projected $41,632 budget savings; council also approved a model where city staff operate daytime call-center service and an external vendor covers after-hours calls; vote 5-0.

San Gabriel — The City Council voted Tuesday to award a contract to LAZ Parking California LLC to operate the city’s RightSG microtransit service for a first-year contract amount of $817,258, a figure staff says is about $99,000 less than the city’s previous contractor and would result in an estimated $41,632 in budget savings for the fiscal year.

Assistant Community Services Director Matthew Morales Stevens summarized recent changes to the RightSG program and the results of a request-for-proposals process. He said RightSG began in February 2022 as a transition from a dial-a-ride program and expanded in 2023 from a seniors-and-disabled service to a general on-demand microtransit system for anyone traveling within San Gabriel. The mobile app allows users to request pickups, book trips up to seven days in advance and track vehicles.

Changes approved earlier this year reduced the RightSG Plus service area from a five‑mile radius to a three‑mile boundary for certain purposes and lowered the age eligibility from 62 to 60. Stevens said that change, plus added vehicle service hours earlier in 2025, led to higher on-time performance and increased ridership among general passengers.

Staff reported three proposals were received after the March 2025 RFP. LAZ Parking proposed the lowest first‑year cost and operates similar microtransit and shuttle services elsewhere in Southern California, including Laguna Beach and Calabasas. Under the recommended contract LAZ would operate vehicles and, when needed, provide an after‑hours call center at a fee of $5.96 per call; the city would staff a daytime call center (proposed Monday–Friday business hours) to handle reservations and support for RightSG Plus users. Stevens said staff will reevaluate call-center costs after six months.

Council discussion covered customer-service continuity for RightSG Plus riders who rely on call-center help, vehicle types and the possibility of future fixed-route or trolley-style services, and translation and registration assistance for seniors. Councilmembers also discussed vehicle size and accessibility and the potential to add vehicles as demand grows.

A motion to authorize the city manager to execute a professional services agreement with LAZ Parking California LLC passed 5-0. Councilmembers voting yes were Mayor Denise Menchaca, Vice Mayor Chan, Councilmembers Tony Ding, Herrera Avila and Wu.

Fiscal note: Council had $858,890 allocated for RightSG in FY 2025–26 from Proposition C (not the general fund). Staff said the LAZ contract first-year amount of $817,258 results in a projected savings of $41,632. Staff added that the city will separately invoice for any after‑hours call-center charges (billed at $5.96 per call under the proposed arrangement).

Next steps: Staff will execute the agreement and coordinate a transition of operations while monitoring call-center usage and performance metrics, with a six-month review to assess call-center costs and service outcomes.