HomeMy WebLinkAbout1998-06-29 City Council (10)City
City of Palo Alto
Manager’s Report
TO:HONORABLE CITY COUNCIL
FROM:
DATE:
SUBJECT:
CITY MANAGER
JUNE 29, 1998
APPROVAL OF
DEPARTMENT: ADMINISTRATIVE
SERVICES
CMR:288:98
OPERATING AGREEMENT WITH PALO ALTO
BICYCLES, INCORPORATED FOR THE UNIVERSITY AVENUE
TRAIN DEPOT BICYCLE PARKING FACILITY
REPORT IN BRIEF
This report transmits three proposals submitted in response to the City’s Request for
Proposals (RFP) for an operator to construct, staff and administer a bicycle parking facility
in the former baggage room at the University Avenue Train Depot. The report summarizes
the evaluation of the proposals and recommends that Council award the operating agreement
to Palo Alto Bicycles, Incorporated.
CMR:288:98 Page I of 8
RECOMMENDATION
Staff recommends that Council authorize the Mayor to execute the attached operating
agreement between the City of Palo Alto and Palo Alto Bicycles, Incorporated to provide a
secured bicycle parking facility at the University Avenue Train Depot (Depot).
BACKGROUND
On April 22, 1997, Council approved a proposal for rehabilitation of the Depot. Included in
the proposal was direction to staff to assume responsibility as the lead agency to undertake
rehabilitation of the facility and work with the other affected agencies to provide for secured
bicycle parking.
On June 2, 1997 (CMR:268:97), the Council adopted a resolution authorizing the submittal
of a request for grant funding to the Bay Area Air Quality Management District (BAAQMD)
in the amount of $127,000 for a bicycle parking facility in the Depot baggage room. In
September 1997, BAAQMD notified the City that it had approved the $127,000 grant
request, and on January 12, 1998, the Mayor executed the BAAQMD Funding Agreement.
The conditions of the agreement with BAAQMD require the City to keep detailed financial
records, submit quarterly reports together with detailed invoices for reimbursement, and to
acknowledge BAAQMD as a funding source by using a BAAQMD-approved logo on any
signs or printed material for public distribution. The BAAQMD also extended the term of
the agreement from 12 months to 18 months.
On March 16, 1998 (CMR:413:96), the Council approved: 1) a Request for Proposals (RFP)
for an operator to construct, staff and administer the bicycle parking facility; and 2) a Budget
Amendment Ordinance (BAO) to accept grant revenues of $127,000 and to fund capital
improvements and operating expenses for the bicycle parking facility in the amount of
$171,000.
DISCUSSION
Project Description
The bicycle storage facility would provide rent-free parking for up to 150 bicycles, in
keeping with the goal of encouraging bicycle commuting and transit use. On weekdays, the
facility would be open, at a minimum, between the hours of 6 a.m. and 8 p.m., with a slight
reduction in hours on weekends. The operator would generate revenue from services
provided, such as bicycle repair, sales, and rentals. The operating agreement would be
cancelable by either party with 90 days notice. After the initial 18 months, the agreement
would be renewable on an annual basis, subject to availability of subsidized funding and the
success of the program. Once the successful proposer has been selected and approved by
Council, the operator would have 6 months to obtain all the required permits and construct
the proposed bicycle parking facility.
CMR:288:98 Page 2 of 8
Consultant Selection Process
In March and April 1998, RFP information flyers were sent to interested parties, and the RFP
was advertised in the Palo Alto Daily and Palo Alto Weekly. In response to the RFP, the
following organizations submitted proposals: 1) Palo Alto Bicycles, Incorporated
(Attachment A), 2) Cyclestation, and 3) Specialty Cycle & Supply.
A committee consisting of former Council Member Ellen Fletcher, Joint Powers Board (JPB)
Manager of Operations-Rail Services Walt Stringer, Rail Analyst Kathleen Holt, Santa Clara
Valley Transportation Agency, Transportation Planner Marcella Rensi, and City
Transportation Senior Planner Gayle Likens reviewed the proposals. The committee’s
evaluation criteria included the following: 1) method of operation, staffing and optional
services; 2) proposed design of the improvements; 3) proposed marketing plan; 4)
experience; and 5) amount of subsidy required.
Method of Operation, staffing and optional services (type, level and quality of service)
All three proposers would provide free bicycle parking seven days a week. The type, level
and quality of service proposed by Palo Alto Bicycles, Incorporated, however, was superior.
It proposed to begin with space for 75 bicycles, with the ability to expand readily if necessary
to 150 bicycles. Palo Alto Bicycles, Incorporated would provide valet-style parking and
proposed two valets during peak commute hours, one staff member would be familiar with
local bicycle routes and free route maps would be available. It proposed to provide two
changing rooms and storage for police bicycle patrols to encourage police presence at the
transit center. Bicycles would be available for rental on a daily, weekly and long-term basis.
It also proposed a "commute before you buy" experience, to allow transit commuters an
opportunity to evaluate a commuter bicycle before purchasing it. In addition, Palo Alto
Bicycles, Incorporated proposed to have road bicycles available for weekend rental and has
suggested the possibility of co-marketing with downtown merchants and restaurants to create
a visitor package that includes bicycling. An experienced mechanic would also be present
for several hours each day to handle simple- to moderately-complex repairs. More complex
repairs would be preformed at the main store two blocks away. Simple parts, accessories,
and maps would be available for purchase. Palo Alto Bicycles, Incorporated proposed to
have an on-site manager, an experienced mechanic and one or two assistants (depending on
customer activity) trained to handle bicycle storage and simple sales and repairs. General
management would be provided at its facility on University Avenue. It also proposed to
employ developmentally and/or physically disabled clients of HOPE Rehabilitation Services.
Proposed design of the improvements
The committee concluded that Palo Alto Bicycles, Incorporated provided the most workable
facility design with the fewest modifications to the historic structure. It would use the entire
1,500 square feet of the former baggage room, providing bicycle storage from the sliding
CMR:288:98 Page 3 of 8
doors facing the railroad tracks. Bicycles would be placed on racks (eleven bicycles to a
rack) on the main floor area. Clients could access the retail merchandizing and changing
rooms from the door leading to the breezeway between the baggage room and the Depot.
Proposed Marketing Plan
Palo Alto Bicycles, Incorporated centered their marketing on a highly publicized Grand
Opening Event, targeting of specific markets, web sites, free marketing, joint marketing with
other transportation agencies and free press-based on the uniqueness of the facility. It also
suggested high visibility with the local bike and advocacy groups and a linkage to Stanford
University workers and students. Palo Alto Bicycles, Incorporated suggested mailings to
monthly train commuters, notice to local hotels and notices on the bicycles in bike racks and
lockers. It also listed as a theme to the Grand Opening Event "Another ’first’ for Palo Alto --
leading the way again in bicycle transportation and new life for a classic station and a jewel
of downtown Palo Alto."
CMR:288:98 Page 4 of 8
Experience
The committee maintained that local experience would be key to the success of the facility
and that Palo Alto Bicycles, Incorporated had the most local experience. The Hoffacker
family has owned businesses in Palo Alto since 1930. The Hoffacker Brothers incorporated
Palo Alto Bicycles, Incorporated in 1973. Its newly-remodel facility at 171 University
Avenue is just two blocks from the Depot. Palo Alto Bicycles, Incorporated states in its
proposal that "through our business and community relationships, we work to foster all
aspects of cycling within Palo Alto and surrounding communities. We work with the
Chamber of Commerce (see Chamber’s endorsement letter attached to the proposal),
Downtown Marketing Association, the Mid-Peninsula Transportation Forum (formerly "Try
Transit"), local schools, the Palo Alto Bicycle Advisory Committee, Silicon Valley Bicycle
Coalition, and ROMP (Responsible Organized Mountain Peddlers)."
Palo Alto Bicycles, Incorporated operated a bicycle rental program from 1996 to 1997. The
financially successful program was put on hold due to space constraints and a remodel of its
store.
Amanda Jones of Palo Alto Bicycles, Incorporated would act as overall manager for the
bicycle parking facility. Ms. Jones has 10 years of retail experience, seven years of
management experience, and two years of specific retail bicycle management. She is
currently the General Manager of Palo Alto Bicycles, Incorporated and is also eaming her
masters degree in Human Resources Organization Development from the University of San
Francisco.
Neal Hoffacker would serve as Financial Manager to the project. He and his brother co-
founded Palo Alto Bicycles, Incorporated and Avocet, Inc., a Palo Alto manufacturer of
bicycle accessories. Neal is currently the Financial Officer of Palo Alto Bicycles,
Incorporated.
Michael Locke would be the bicycle mechanic for the facility and the Facility Manager. He
has 15 years of bicycle mechanic and retail experience. He also commutes over 16 miles on
his bicycle daily.
John Ciccarelli would design the facility and advise on marketing the facility to commuters,
employee coordinators and the Stanford University community. John has three years
experience as Stanford’s Bicycle Program Manager. He also serves on the Bicycle Advisory
Committees of Santa Clara County (Chair), Palo Alto, and Caltrain. John is also a year-
round bicycle commuter.
Palo Alto Bicycles, Incorporated proposed working with HOPE Rehabilitation Services.
HOPE has been serving individuals with developmental disabilities in Santa Clara County
CMR:288:98 Page 5 of 8
since 1952. HOPE is a nonprofit organization specializing in job training and it is constantly
pursuing "partnerships" with local companies. Harper Connolly the Head of Corporate
Giving for HOPE will serve on the Advisory Board. Harper brings professional marketing,
financing, and nonprofit sector experience to the Advisory Board. For the past 15 years he
has been Marketing Manager for Silicon Valley companies, including Pyramid Technology
and Knight Ridder.
Amount of subsidy required after the initial eighteen month startup period
Palo Alto Bicycles, Incorporated estimated the annual subsidy would be approximately
$80,000 after the 18-month startup period. The revenue-generating services at the facility
would not contribute to the annual subsidy, so Palo Alto Bicycles, Incorporated did not
include revenue projections. It proposes instead to pay for all the expenses (estimated at
$58,544 in the first year) and retain all the income associated with the revenue-generating
(sales, rental and repair) services provided at the Depot. It also proposes to provide for an
individual to seek out other sources of funding to reduce the amount of the annual subsidy.
Conclusion
Based upon the evaluation criteria, the committee unanimously recommends that the Council
award the operating agreement to Palo Alto Bicycles, Incorporated. The committee
concluded that Palo Alto Bicycles, Incorporated’s overall proposal and presentation was
superior to that of Cyclestation & Special Cycle and Supply. Palo Alto Bicycles,
Incorporated’s local experience was one of the primary reasons for the committee’s selection.
In addition, Palo Alto Bicycles, Incorporated proposed a well developed operating plan, a
workable layout of the facility and a marketing plan that demonstrates a thorough knowledge
of the local opportunities available. Although the committee and staff were concerned with
the high subsidy cost, Palo Alto Bicycles, Incorporated’s plan included hiring an individual
to focus on generating the revenues necessary to continue the operation beyond the initial 18-
month period.
Operation Agreement
The attached operating agreement is consistent with the terms of the RFP approved by
council on March 16, 1998, Under the terms of the agreement, Palo Alto Bicycles,
Incorporated will design, develop, staff and manage a secured bicycle parking facility for a
maximum of 150 bicycles. During the first 18 months there will be no charge for daily
bicycle storage. District grant funds in the amount of $127,000 and City funds in the amount
of $44,000 are available to the Operator for: 1) conversion of the baggage room to an
operational parking facility, 2) acquisition of rental bicycles and other related equipment, and
3) funding for 18 months of staffing and operating costs. Either party may terminate the
agreement with 90 days written notice.
CMR:288:98 Page 6 of 8
RESOURCE IMPACT
The cost of the project in the first 18 months as proposed by Palo Alto Bicycles, Incorporated
is estimated to be $171,000, consisting of $45,000 of capital improvements for the
construction of the bicycle parking facility, and $126,000 in operating expenses. These
costs would be covered by $44,000 of City funds and the $127,000 grant from the
BAAQMD. Funds for this project are included in the 1997-98 Budget.
Although the available funding is limited to 18 months, the assumption is that the bicycle
facility will be in existence for many years to come. Palo Alto Bicycles, Incorporated is
projecting that the annual subsidy would be approximately $80,000 after the first 18 months
of operation. Consequently, the future of the facility will depend on the availability of
subsidized funding. Palo Alto Bicycles, Incorporated has stated in its proposal that "in order
to sustain and grow the bicycle storage component of the facility while reducing its
dependence on the initial grant sources; we intend to add a team member whose position will
be self-funded through grants the individual will seek as part of their duties." Palo Alto
Bicycles, Incorporated projects that this individual will identify and obtain sources of
funding to reduce the annual subsidy. In CMR: 150:98, staff also suggested the following
options for covering the subsidy: 1) the City funds the deficit with other interested agencies
(Stanford University, the JPB, and the Santa Clara Valley Transit Authority); 2) City applies
for additional BAAQD funds for operations on a year-to-year basis, if funding for bicycle
projects is extended; 3) sufficient vendor services are established to supplement operating
income; 4) City increases its funding level to cover the deficit; 5) vendor charges a nominal
fee to bicyclists for parking of the bicycles, to generate additional revenue; or 6) the bicycle
facility services are cut back to reduce any deficit.
POLICY IMPLICATIONS
The recommendation does not represent any changes to existing City policy and is consistent
with past Council action. This project is also consistent with the Dream Team concept for
an Intermodal Transit Facility, and it implements the draft 1995-2010 Comprehensive Plan
Policy T-17: Improve and create more bicycle parking at multi-modal transit stations.
ENVIRONMENTAL. IMPACT REVIEW
The bicycle parking facility, which is anticipated to consist of exterior signage and minor
interior modifications to the baggage room, is considered to be a minor alteration involving
a negligible expansion of use to an existing facility, and would not cause a substantial
adverse change in the significance of this historic resource. Therefore, it is considered to be
exempt from the provisions of the California Environmental Quality Act (CEQA), pursuant
to Section 15301 of the CEQA guidelines.
ATTACHMENTS
Attachment A- Palo Alto Bicycles, Incorporated Proposal
Attachment B- Operating Agreement
CMR:288:98 Page 7 of 8
PREPARED BY: William W. Fellman, Manager, Real Property
DEPARTMENT HEAD APPROVAL:
CARL YEATI
Director,Services
CITY MANAGER APPROVAL:
EMI~-Y HARRISON
Assistant City Manager
CC:Palo Alto Bicycles, Incorporated
Cyclestation
Special Cycle and Supply
Palo Alto Bicycle Advisory Committee
Dave Burch, BAAQMD :
Walt Stringer and Kathleen Hold, Caltrain JPB
Marcella Rensi, UTA
CMR:288:98 Page 8 of 8
Attachment A
Palo Alto Bicycle Proposal
PROPOSAL
to Acquire an
Operating Agreement
for a
Secured Bicycle Storage Facility
at the
University Avenue Train Depot
Baggage Room
submitted bY
Palo Alto Bicycles, Incorporated
May 18, ,1998
pBOPOSAL PACKAGE
T~IS IS A PROPOSAL TO ACOUIRE AN OPERATING AGREEMENT FOR
SECURED BICYCLE STORAGE FACILITY
AT T~E UNIVERSITY AVENUE TRAIN DEPOT BAGGAGE ROOM
Name :
Address:
Phone No.
(Please print)
The undersigned, ("PROPOSER") hereby submits a proposal to the
City of Palo Alto, ("CITY") to acquire a contract more fully
described in the Contract Agreement (ATTACHMENT B), in accordance
with the terms, covenants, and conditions contained in this
PROPOSAL and in the Operating Agreement.
A.TERMS AND CONDITIONS
PROPOSER has carefully read and fully understands the
PROPOSAL document and the Operating Agreement attached
to this PROPOSAL.
The Operating Agreement is an integral part of this
proposal and must be attached to this PROPOSAL.
PROPOSER warrants that it has the capability to
successfully undertake and complete the
responsibilities and obligations of OPERATOR contained
in the Operating Agreement.
This PROPOSAL may be withdrawn at any time prior to
the time set for opening the proposals but may not be
withdrawn after the time set for such opening.
Within ten (I0) days after notification of the
acceptance of this PROPOSAL by CITY, PROPOSER will
execute the Operating Agreement.
PROPOSER’S OUESTIONNAIRE
All information requested in this questionnaire MUST be furnished
by the PROPOSER, and MUST be submitted with the PROPOSAL.
Statements must be complete and accurate. Omission, inaccuracy,
or misstatement MAY be cause for rejection of this PROPOSAL.
Name of PROPOSER exactly as it appears on the PROPOSAL and as it
will appear on the agreement, include full legal name of
business:
Address of PROPOSER for purposes of notices or other
communication relating to the PROPOSAL:
Telephone Number of PROPOSER:
II. STATEMENT FOR PROPOSERS
PROPOSER intends to operate as a Sole Proprietorship
Partnership ( ); or Joint Venture ( ); or
Please attach an organization chart showing Board of
Directors, members, if any, management and staffing levels.
Please include a membership list of your Board of Directors,
their city of residence, occupation, and dates of sez-vice on
the Board.
How often does your Board meet?
Are Palo Alto Residents served by your organization?
If so, approximate number of residents served:
Type of service provided:
V. METHOD OF OPERATION
Describe your specific plan for the type, level and quality of
service to be provided. Include level of staffing and any
optional services and uses which you will seek permissi’on to
provide.
ATTACHMENT A
VII. FINANCIAL INFORMATION
A. Provide an estimate for the cost to l)design and construct and
2)equip the facility.
B. Provide a 3 year pro-forma analysis of income and
the proposed project.
expenses for
C. Do you estimate the need for a subsidy at the end of the first
18 months of operation? If so, what do you estimate the annual
subsidy to be?
ATTACHMENT A
List at least four persons or firms with whom you have conducted
business transactions dur±ng the past three years.~ At least two
references named should have knowledge of your ability to finance
the proposed project and your debt payment history. At least two
references should have knowledge of your abilities to operate the
proposed facility.
REFERENCE NO. 1
Name:.,,
Address: 90
Telephone:
Nature and magnitude of purchase, sale, loan, business
association, etc.:
REFERENCE
Name : l ~ ~
Title: ~7] ~ I~-~
Address: 100 II Ig, ~:o~[~ g "tlLV.I>Zip: ~-~ lq
Nature and magnitude of purchase, sale, loan, business
associa.tion, etc.
ATTACHMENT A
Please provide any other information which you feel will be
helpful in evaluatins your ability to successfully improve and
operate the proposed facility.
ATTACHMENT A
PROPOSAL
PACKAGE
DETAILS
Contains details referenced in the
Proposal to Acquire an Operating
Agreement for a Secured Bicycle
Storage Facility at the University
Avenue Train Depot Baggage Room
submitted by
Palo Alto Bicycles, Incorporated
May 18, 1998
Contents
V. Method of Operation ...........................................................................1
Free services to be provided upon opening .......................................................1
For-profit services to be provided upon opening ..............................................1
Possible future services .........................................................................................2
Staffing .....................................................................................................................2
VI. Experience Statement ........................................................................3
1. Palo Alto Bicycles ...............................................................................................3
2. HOPE Rehabilitation Services ..........................................................................3
VII. Financial Information .......................................................................6
VIII. Plan of Proposed Operation ...........................................................9
IX. Proposed Marketing Plan ..................................................................12
Overview .................................................................................................................12
Bicycle Storage Market Segrnertts and Channels ...............................................13
Marketing Channels ...............................................................................................14
Grand Opening event ............................................................................................16
V. Method of Operation
Describe your specific plan for the type, level, and quality of service to be provided. Include level
oJ: stayyfing and any optional services and uses which you will seek permission to provide.
NOTE: The full name of the bidder is Palo Alto Bicycles, Incorporated.
This will be referenced throughout the document as Palo Alto Bicycles.
Free services to be provided upon opening
Bicycle Storage
We intend to reserve sufficient space to store 150 bicycles with enough remaining floor
area to support the Bikestation’s other services (retail sales, bicycle repair, changing
room, and office). 75 or more storage spaces will be available at opening day, with the
ability to rapidly add some or all of the remaining spaces as demand rises.
Bicycle storage will be free to the public. Service will be "valet" style: cyclists will check
and retrieve their bicycles at a counter but are not permitted behind that counter;
cyclists will not need to lock their bicycles or remove accessories or bags attached to
them. To allow cyclists to make transit connections without delay, two valets will be
present at peak times and one at other times.
Changing Room(s)
One or two changing rooms will be available for commuters.
Other bicycle commuter support
Bicycle route maps (those that are provided free by governments or agencies), cycling
safety pamphlets, and route information will be provided at no cost by Depot staff. At
least one permanent staff person will be a bicycle commuter familiar with local routes.
P liceBic cl Patrol sat llit ta"n" nt P i D a entint r t
¯ We would like to create a community policing presence at the transit station by
providing modest storage for police bicycle patrol supplies and a friendly place for
patrol officers and the public to interact. Palo Alto Bicycles is the main vendor for the
city’s police and fire bike team needs, and recently received a letter of recognition for
our partnering with the Community Policing Unit.
For-profit services to be provided upon opening
Bicycle Rental
Bicycles will be available for daily, weekly, and long-term rentals. In addition, a
"commute before you buy" program will allow transit commuters to evaluate a
commuter bike before purchasing it. To increase weekend rental activity, we intend to
have available higher-end road bikes for recreational use. Other possibilities include
comarketing with downtown merchants and restaurants, to create a visitor package that
includes bicycling.
Bicycle Storage Facility Proposal: Details Page I of 16May 18, 1998
Bicycle Repair.
An experienced on-site mechanic will be present for several hours each day, and the
Bikestation’s repair area will be equipped to handle simple to moderately complex
repairs. Repairs requiring more complex tools or special parts will be performed at the
main store two blocks away, with dropoff and pickup provided at the Bikestation.
Retail Sales
Simple parts, accessories, and maps will be available for purchase.
Possible future services
Newsstand (possibly third-party)
Sales of newspapers and magazines could use a vending cart or possibly the old counter
window in the station’s main room. If a cart were used it could be stored in the
Bikestation space overnight. Because such a business would be unrelated to bicycle
retail and service operations, this service might be provided by a separate operator.
Food/snack concession (possibly third-party)
Sales of simple food, snacks, and beverages could use a vending cart or possibly the old
counter window in the station’s main room. If a cart were used it could be stored in the
Bikestation space overnight. Because such a business would be unrelated to bicycle
retail and service operations, this service might be provided by a separate operator.
Meeting / Education facili, .ty (_possibly managed by third party)
The ticketing and waiting area is a wonderful space that is completely unused except on
weekday mornings. We believe this community resource should be made available for
meetings, seminars, exhibits, and community events, including but not limited to
transportation and bicycle related activities. In particular, we see an opportunity to
conduct cycling classes based at the train station. All of these expanded uses would be
coordinated with the remodel of the south station building.
Staffing
On-site staff will consist of a site manager, an experienced mechanic equipped for
repairs of low to moderate complexity, and one or two assistants (depending on
customer activity) trained to handle bicycle storage and simple sales and repairs. For
these assistant positions we intend to employ clients of Hope Rehabilitation Services,
supervised by depot staff and also part-time by an experienced job coach provided by
Hope. Bikestation employees will follow quality service standards contained in the
Palo Alto Bicycles Employee Conduct manual.
General management will be provided by the Palo Alto Bicycles General Manager,
based in the company’s main facility 2 blocks away. Periodic reporting to meet Air
District and city requirements will be performed by a part time person.
Bicycle Storage Facility Proposal: Details Page 2 of 16May 18, 1998
VI. Experience Statement
Describe in detail the duration and extent of your experience with special emphasis upon
experience related to the type of operation planned for this project.
1. Palo Alto Bicycles
,Business
Palo Alto Bicycles, a specialty bicycle retailer and repair center, has been a member of
the downtown business community since 1973; the family-owned firm that operates the
business has been in operation in Palo Alto since 1930. Our newly remodeled building
at 171 University Avenue is just two blocks from the Palo Alto Caltrain Depot, the site
of the proposed bicycle storage facility.
We are a customer service driven retail and service company with an excellent
knowledge of the local customer base and its needs. Our store stocks a wide range of
products for customers of all ages and abilities, and we can special order items from
many vendors. The experienced mechanics in our full service repair shop can repair
most bicycles and handle all inquiries.
Through our business and community relationships we work to foster all aspects of
cycling within Palo Alto and surrounding communities. We work with the Chamber of
Commerce, Downtown Marketing Association, the MidPeninsula Transportation
Forum (formerly "Try Transit"), local schools, the Palo Alto Bicycle Advisory~
Committee, Silicon Valley Bicycle Coalition, and ROMP (Responsible Organized
Mountain Pedalers).
Bicycle rental experience
Palo Alto Bicycles operated a bicycle rental program from 1996 to 1997, featuring a fleet
of mountain and road bikes. This financially successful program was put on hold in
1997 due to space considerations and the impending relocation of the store.
2. HOPE Rehabilitation Services
To enhance the value of our operation to the community, we propose to employ
developmentally and/or physically disabled clients of HOPE Rehabilitation Services.
This is a pilot program to introduce the clients of HOPE into small businesses.
Bicycle Storage Facility Proposal: Details Page 3 of 16
May 18, 1998
Also describe, in detail, the pertinent experience of the person or persons who will be directly
involved in the development and management o.f the operation proposed for this project.
General Manager: Amanda Jones
Amanda will oversee all aspects of Bikestation operation, which includes supervising
the site manager and site mechanic and serving as director of the Advisory Board.
Amanda is currently General Manager of Palo Alto Bicycles. She has ten years of retail
experience, seven years in management, and two years of bicycle specific retail
management. Prior to joining Palo Alto Bicycles two years ago she was Assistant Store
Manager of the Recreational Equipment Inc. (REI) store in Mission Viejo, CA where she
managed all retail functions and all purchasing and administration of rental programs.
Amanda is earning a Masters in Human Resources Organization Development from the
University of San Francisco.
Financial Officer:.. Neal Hoffacker
Neal will be the financial manager of the project. Born in Palo Alto, Neal graduated
from Stanford University in 1971 and co-founded Palo Alto Bicycles in 1973 with his
brother Bud. In 1977 Neal co-founded Avocet, Inc., a Palo Alto manufacturer of bicycle
accessories, and since then has served alternately as President and Vice President of
both companies, and as Financial Officer of Palo Alto Bicycles.
Site Manager: David V~rnon
Dave will be the manager of the facility and its senior on-site staff person. A Palo Alto
resident, Dave brings five years of store management experience to the project, most
recently as Manager of the Start To Finish bicycle store in Santa Clara. A lifelong
cycling enthusiast, Dave has administered retail, rental, and service operations.
On-site Service Manager: Michael Locke
Michael will be the facility’s bicycle mechanic. He is currently a mechanic and
salesperson at Palo Alto Bicycles, and has over 15 years of bicycle mechanic and retail
experience. He is an advocate of bicycle commuting and an expert with all aspects of
commuter cycling needs from quick repairs to fender installation and wheel building.
Michael does not own a car and cycles over 16 miles to and from work.
Consultant {Bicycle Storage. Marketing): ]ohn Ciccarelli
John will design and construct the Bikestation’s bicycle storage and will advise on
marketing the facility to commuters, employee transportation coordinators, and the
Stanford community. His experience includes three years as Stanford University’s
Bicycle Program Manager, where he supports hundreds of commuter and student
cyclists. John has developed secure bicycle storage facilities and designed a new rack
that is in wide use at Stanford. He has seven years of service on the Bicycle Advisory
Committees of Santa Clara County (chair), Mountain View (chair), Palo Alto, and
Caltrain. A year-round bicycle commuter, John is also an Effective Cycling Instructor
who teaches "bicycle driver education" classes.
Bicycle Storage Facility Proposal: Details
May 18, 1998
Page 4 of 16
Marketing and Funding advisor / HOPE Rehabilitation liason: Harper Cormolly
Harper brings professional marketing, financing, and nonprofit sector expertise to the
team. For the past year he has worked for the Foundation for HOPE, where his four
primary responsibilities are soliciting resources from corporations, unions, and
government, securing grant funding, creating business agreements to employ HOPE
clients, and seeking donations from individuals and other small sources. A law school
graduate, Harper has managed local and national political campaigns and held
positions in local and federal government. For the past 15 years he has been a
Marketing Manager for Silicon Valley companies including Pyramid Technology and
Knight Ridder.
Grants / Outreach / Education. coordinator: (to be added after facility is opened)
In order to sustain and grow the bicycle storage component of the facility while
reducing its dependence on the initial grant sources, we intend to add a team member
whose position will be self-funded through grants the individual will seek as part of
their duties. This person will actively seek funding, oversee all reporting to government
agencies, conduct outreach to community and bicycle groups, and possibly offer cyclist
education. We are exploring the possibility of sharing this person with nonprofit
cycling groups, strengthening the Bikestation’s image as a center of bicycle
transportation and advocacy. Until this person is hired, all reporting and grant
applications will be performed by the Site Manager and General Manager.
Advisory Board:
¯Director: Amanda Jones (General Manager, Palo Alto Bicycles)
¯Neal Hoffacker (co-owner, Palo Alto Bicycles)
¯Bud Hoffacker (co-owner, Palo Alto Bicycles)
¯John Ciccarelli (Bicycle Progam Manager, Stanford University)
¯Harper Connolly (Hope Rehabilitation Services)
¯(Bicycle Advocacy or Advisory representative, to be added)
Other Affiliations
The Palo Alto Bikestation will be affiliated with Bikeable Communities, Inc., a nonprofit
corporation founded by John Case, the creator of the first U.S. transit station bicycle
storage facility, the Long Beach ~Bikestation. Bikeable Communities Inc. is an
information-sharing resource whose purpose is to foster the creation of a national
bicycle transportation culture and its associated infrastructure, and is also the licensor of
the "Bikestation" name.
Bicycle Storage Facility Proposal: Details P~ge 5 of 16May 18, 1998
VII. Financial Information
We have chosen to use a "stand alone" financial model for the bicycle storage operation,
representing its costs separately from the for-profit retail and service business that will
share the facility and staff. We see two advantages to this approach:
¯The viability of the not-for-profit bicycle storage operation will not depend on the
for-profit operation’s uncertain and fluctuating accessory sales and rental business.
¯Tracking and analysis of the ongoing operational costs of the bicycle storage
operation (i.e. its subsidy requirements) should be easier.
For this reason, information regarding sales and rentals will be provided to the City of
Palo Alto but is not incorporated into the financial model presented in this proposal.
Palo Alto Bicycles and HOPE will provide significant capital items and employee
payroll to the bicycle storage facility at no cost to its financial model, enabling
significantly less cash to be invested in capital and employees.
Palo Alto Bicycles
1.Bike rental fleet
2.Office equipment and furniture
3.Repair benches and retail fixtures
4.Repair tools
5.Full time (40-hour week) mechanic
1. Computer equipment
2. Patio furniture
3. Supervisor ("Job Coach") for HOPE clients, as needed (declining involvement)
The money saved will be initially directed at marketing to create a successful launch
and a professional image for the facility.
A. Provide an estimate for the cost to 1) design and construct, and 2) equip the facility
Palo Alto Bicycles’ recent rebuilding of its store at 171 University Avenue has given us
an accurate idea of exactly what is required to initially set up the storage facility. Our
capital budget is itemized below:
DESIGN / CONSTRUCTION
Item
Contractor
Materials
Electrical
Flooring
1-Jaint
signage
HVAC
Misc.
Total
, Amount
$11,000
8,000
7,500
3,000
1,000
3,000
2,000
2,500
$38,0O0
EQUIPMENT
Item
Bike storage fixtures
Alarm system
Tools
Compressor
Patio umbrellas
Phones and installation
Time clock
Amount
$5,000"
8o
500
200
200 ....
2O0
3O0
Total $7,200
Bicyclf Storage Facility Proposal: Details
May 18, 1998
Page 6 of 16
vIIi. Plan of Proposed Operation
Provide a scaled drawing that indicates how the facility will be designed to operate within the
approximately 1,500 square foot former baggage room.
(See proposed floor plan and bicycle storage
fixture concept on following two sheets)
Also describe how any improvements and signage will be consistent with the baggage room’s
historic designation.
All signage for the exterior and interior of the facility will be designed to be consistent
with the historical era and color scheme of the facility. At this time we have not
designed any signage.
Bicycle Storage Facility Proposal: Details Page 9 of 16May 18, 1998
~ ~7-
I
IX. Proposed Marketing Plan
Provide plan for how facility should be marketed.
Overview
Our marketing strategy has five elements:
1. Identify market segments and target-market to each one
2. Create several core marketing pieces to use at the Grand Opening and thereafter
a) A website (and get established transportation websites to link to it)
b) A self-mailer brochure that incorporates a simple bike route map
c) A poster incorporating the information similar to the brochure
d) A press kit, including a press release (update kit as print coverage appears)
3. Create a Grand Opening event to maximize initial awareness and press coverage
4. Use free marketing opportunities wherever possible, specifically transit agency
channels, city and Stanford information resources, and company channels such as
Employee Transportation Coordinators and newsletters.
5.Utilize the facility’s required record-keeping to learn customer patterns, and tailor
the marketing as those patterns become apparent.
Bicycle Storage Facility Proposal: "Details Page 12 of 16
May 18, 1998
Bicycle Storage Market Segments and Channels
We list several types of potential customer, with channels appropriate for targeting each
one. Channels are described in more detail in the third table.
"Bike radius" is the practical distance of a bicycle-based feeder trip between the station
and home or workplace. For planning purposes we will use two miles, a distance
which can be covered within 10 minutes by bike without changing clothes.
Current non-cyclists (not currently using a bicYCle for their trip)
1
SEGMENT
Empl6y~es within bike’radius"
USAGE
(Varies)
Transi’t commuters working’within Overnight & weekend
bike radius, marginally served by (out during workday)
other transit connections
3a Drive-alone commuters residing ’Workday
within bike radius
.... 3b Drive-alone commuters Working ’ Overnight & Weekend
within bike radius (out during workday)
4a Stanford students, day trips Daytime Stanford
4b Stanford students, quarter breaks 1-2 weeks Stanford
(commute to airport)
CHANNELS
ETC
Direct mail
Presentation
PSAs (Radio,TV)
Transit
Transit aboard
Company
Residence
Traffic info
Company
Current cyclists.(already using a bike for all or part of their, trip)
SEGMENT USAGE CHANNELS
(All cyclist segments)C’yclin~ ’
5 Downtown Palo Al~o bike Workday Company
commuters without secure parking
6a Bike-On-Board (Caltrain Or bus), ......Workday
starting at station
’6b Bike-On-Board (Caltrain or bu~),Overnight & weekend
ending at station (out during workday)
7 Caltrain or bus users who currentl~Depends on tram’el
lock bikes to racks pattern
8 Overnight, sh~rt-tehnTourists with bikes who don’t want
to keep it in room or vehicle.
(Tourists without bikes are potental
rental customers.)
Station " "
Bus aboard
Bike Car
Station
Bus aboard
Bike Car
’Flyers on bikes
Signs at racks
Tourist info
Hotels
Bicycle Storage Facility Proposal: Details
May 18, 1998 Page 13 of 16
Marketing Channels
CHANNEL DESCRIPTION ’
Bike Car Tak~ On~ cards in Bike Car, Ads"in Bike Car
(Possible conductor mention to cyclists who board at Palo Alto)
Bus aboard Ads aboard buses
Compan~Employee Transportation C’o0rdinat0rs’
Company newsletters, websites, email lists
Cycling Advocacy group and c~ub websi~es, newsletters, emaii" li~tS .....
Advocacy: Silicon Valley Bicycle Coalition, San Francisco Bicycle
Coalition, Mid-Peninsula Bicycle Coalition, Regional Bicycle
Advisory Committee, League of American Bicyclists magazine
Clubs: Western Wheelers, Skyline, Almaden Cycle Touring Club
Cycling media (Cycle California!, Bicycling, Bike Culture, ...)
ba.bicycles Internet newsgroup
RIDES, Inc. bike webpages
’Direct mail Brochure s6nt by postal mail
"E~c’San Matzo County ET~ newsletter
(Employee Stanford Research Park ETC group
Transportation
Coordinator)Mid-Peninsula Transportation Forum
Silicon Valley Mfg. Group Commute Transportation Council
RIDES, Inc.
VTA News (email newsletter)
ACT (Association for Commuter ~Transportation)
’Flyers 6n bikes Notices stapled ’to bikes locked to station bike racks" ’
"’H6t61 .....Concierge ~d marketing manager at nearby hotels ’"
Pr’esentation Short talk given by one or rno~e of the Bikestat~0n team ........
PSAs Public Service Announcements on radio and television
Residence Palo Alto Weekly, Palo Alto Daily News
Palo Alto utility bill mailer
Palo Alto / Menlo Park phone books
Signs at racks ’ Permanent signs posted near station bike racks
Bicycle Storage Facility Proposal: Details Page 14 of 16
May 18, 1998
Marketing Channels, continued:
CHANNEL DESCRIPTION
Stanford Resident Life (info to students in dorms)
Parking and Transportation Services (Transportation Books,
distributed in fall
Stanford Directory (phone books, with coupons)
Stanford Daily (student-run, read by students & others)
Stanford Report (weekly for faculty/staff, w/transp, page)
KZSU radio (student-run, mainly student audience)
Station Permanent station Signage
Sandwich board sign set out by Bikestation during open hours
Information in Caltrain display case
Brochure holder at ticket counter
Traffic info Mercury News "Roadsh6w~’ column (Gary Richards) .....
Chronicle "Commuter Chronicles" column
Palo Alto Daily News traffic column
"TravInfo" phone line
~r’ansit Mailings"’t6 monthly pass holders’
Transit agency websites (link to Bikestati0n website)
Transit aboard Caltrain: Newsletter, Take One cards" (other than Bike’Ca~i .....
VTA/Samtrans: On-board ads
Tourist info Travel agencies, Chamber of Commerce literature, travel guides
Bicycle Storage Facility Proposal: Details Pag~ I5 of 16
May 18, 1998
Grand Opening event
Themes
¯A "first" for Northern Califorrda - first "station bike" facility like those common at
rail stations in Europe and Japan
¯A "first" for Caltrain - takes the Peninsula’s rail system to a new level and
complements its Bikes On Board program (the highest capacity bike-on-rail in the
country)
¯Another "first" for Palo Alto - leading the way again in bicycle transportation
¯New life for a classic station building and a jewel of Downtown Palo Alto
¯All-day retail presence and increased security for a busy transportation hub
¯A model that can be replicated at other major transit stations
Invitation list (partial)
¯Media (local / regional / Stanford newspapers, TV, radio)
¯Local and county politicians (Mayors, councilmembers, Supervisors)
¯Local employers (executive management, Employee Transportation Coordinators,
employees, Silicon Valley Manufacturing Group president and vice president)
Local residents
Stanford University iGovernment/Community Relations, Stanford Management
Company (station landlord), Parking and Transportation Services, News Service,
KZSU radio, Stanford Daily)
Transportation / Air Quality / Environmental professionals (RIDES, Multi-City
TSM Agency, VTA, Samtrans, Caltrain, Altrans, JW Environmental, Bay Area Air
Quality Management District, American Lung Association, Business Environmental
Network)
¯Bike and sports shop owners and staff (Palo Alto, Menlo Park, Stanford, plus REI)
¯Bicycle transportation advocates (Silicon Valley Bicycle Coalition, San Francisco
Bicycle Coalition, Mid-Peninsula Bicycle Coalition, California Bicycle Coalition,
city/county Bicycle Advisory Committee members)
¯Rail/transit advocates (Caltrain Citizens Advisory Committee, Peninsula Rail 2000,
Train Riders Association of California)
Bicycle Storage Facility Proposal: Details Page 16 of 16
May 18, 1998
"As a restaurant general manager 1 am
to call on HOPE to provide my stores
with enthusiastic, motivated workers."
Roger O’Brien
Taco Bell
QUAL FmD WORKERS FOR HIRE!
HOPE Rehabilitation
Services has more
than 250 well-trained
qualified workers
ready for hire within
your company.
When you hire from HOPE you are
hiring employees who:
*have a strong desire to
succeed
¯take pride in their worl~
¯are consistent performers
o will be loyal and depend-
able members of your
team
Employment
Options Include:
Direct Placement...on Your Payroll
HOPE provides your company with either full-time or part-time workers
who are trained and supervised by an on-site HOPE Job Coach (at no
additional expense to you), or by your own staff.
Contracted Placement...On HOPE’s Payroll
Groups or individuals from HOPE can work at your company on a part-
time or full-time basis. The workers remain employees of HOPE and
receive supervision from HOPE job coaches.
With either model, HOPE is always ready to assist you. Our services include
task analysis, job layout, recruitment, job match orientation, on the job
training and ongoing support. All of these services are provided at no
cost to the employer.
Let HOPE’s professional staff show you how we can best meet your
staffing needs.
HOPE has qualified workers eager to work in these difficult to fill
positions:
* food service
, janitorial
, cashiering
o quality control
¯ data entry
¯ day care/child care
¯ material handling
¯ grounds maintenance
... and more
assembly/packaging
clerical/receptionist
mailroom services
retail sales/stocking clerks
For more information call HOPE’s Employment Services at (408) 282-0426
HOPE REHABILITATION SERVICES
AGENCY OVERVIEW
Since February of 1952, When°a group of parents came together looking for support and
opportunities for their disabled children, HOPE Rehabilitation Services has been serving
persons with developmental disabilities in Santa Clara County.
In responding to the ever changing needs of these individuals, HOPE now provides
services far beyond the expectation of its founders. HOPE programs include work
training, job placement, day activity centers, professional counseling, infant services, a
senior center, supported and independent living services and mobility training. As HOPE
has grown, it has stayed true to the vision and mission of the founders: to enhance the
quality of life of individuals with disabilities and their families. By providing a
comprehensive array of quality services, HOPE enables our program participants to
achieve their maximum potential and make their dreams come true.
HOPE provides services for more than 1,700 children, adults and seniors in the counties
of: San Mateo, Santa Clara (66 clients from Palo Alto area), Santa Cruz, San Benito
and Monterey. HOPE’s focus is on individuals with developmental disabilities such as
mental retardation, autism, cerebral palsy, brain trauma and other neurological
impairments, as well as persons with multiple disabilities.
HOPE is the largest non-profit agency of its kind in the country and is recognized as a
model for its excellence in services to people with disabilities.
EMPLOYMENT PROCESS
Much of one’s self-esteem and sense of self-worth comes from our .employment.
Individuals participating in HOPE Rehabilitation Services’ Employment Training Program
experience their own growth of self-esteem and self-respect.
As a nonprofit that specializes in job training for adults with developmental disabilities,
HOPE is constantly pursuing "partnerships" with local companies. Many of HOPE’s
corporate collaborations go beyond initial sponsorships and include production contracts
that we execute in our own production facilities as well as the placement of clients within
corporations. At present HOPE has production service contracts with ninety ((90)
companies. Many of our trainees have graduated from our work activity centers and our
enclaves (group work) to individual work assignments in companies throughout Northern
California. Each year nearly 600 HOPE clients are placed into permanent and temporary,
local industry jobs. Follow up services are provided as needed.
When an individual is referred to HOPE for employment training, they are evaluated for
individual vocational interests,skills,aptitudes,and physical capacities by testing in the
following areas: physical tolerance, learning ability, achievement, vocational interest and
work habits.
Through HOPE’s solicitation of sub-contract work from major. Silicon Valley companies,
HOPE clients develop and maintain effective work skills and habits that ultimately lead to
competitive employment. A job ready individual can receive limited employment through
HOPE’s Work Experience Program as a transitional tool for job placement.
SPECIFIC EXPERIENCE
Numerous examples of ongoing HOPE employment and customer service successes
immediately come to mind. Several are as follows:
Childrens Discovery Museum
Kids Cafe
HOPE operates the Kids Cafe in the Childrens Discovery Museum.This very successful
retail/food service program employs fifteen clients and two supervisors.
USGS
Mail Room
HOPE has operated the entire mail room operation at the United States Geological
Survey in Menlo Park since January of 1995. This state-of-the-art mail operation employs
seven clients.
Monterey Post Naval Graduate School
Janitorial Pro.qram
HOPE presently fields a sixty person work force that is now responsible for cleaning in
excess of one (1) million square feet of space per day at the graduate school. That
includes 52 different buildings in 6 locations. We are nearing completion of our third year
of a proposed five year contract.
Salvage Program
HOPE has operated a home pickup of clothing and household goods program for twenty
-five years. This four county-wide program employs a total of thirty one employees,
operates from 8:00AM to 9:00PM, five days a week and generates 1.2 million dollars per
year.
May 13, 1998
CHAMBER OF
COMMERCE
BOARD OF DIRECTORS
Chair
BARBARA GROSS
Glendale Federal Bank
Chair Elect
RICK STE P~N
Stern Mortgage Compan~
Vice Chairs
TON~’ CARR&SCO
Carrasco & Associates
PATRICIA KUNZ
Stanford Park Hotel
N.gNCV PETERSON
Roche Bioscience
PAUL ~’RIGHT
JM Pert’), Corporation
Past Chair
JEFFREY L. ~AILLAN’T
EPRI
JANE ALHOUSE GEE
Mhouse.King Realty
JIM BALBONI
Otis Elevator
BETSV BECHTEL
Citibank
CLEMEN~ CHEN Ill
Sheraton Pa[o Alto Hotel
MIKE COBB
Mike Cobb Associates
VINCE DAUCIUNAS
Hewlett-Packard Company
GEORGIE GLEIM
Gleim the Jeweler
LARRY HORTON
Stanford University
CHARLES J. KEEN.&’~ Ill
Keenan Land Company
JE&NNE LABOZETI’A
Famil.,, Service Mid-Peninsula
JOHN LAZAR
Coldwell Banker/Cnrnish & Care.~
JANET R. LEDERER
Palo Alto Medical Foundation
DAVID LONGBI¾E
Stanford Shopping Center
DAVE ROSS
Jack & Cohen Builders, Inc,
RICH,MiD H. SCHWARTZ
Attorney. at Law
KRISTI.N SEUELL
Pete’s Brewing Compan)
PETER TABER
Hobee’s Restaurants
President & CEO
SUSAN E. FRANK
Mr. Bill Fellman
Real Estate Division
City of Palo Alto
P.O. Box 10250
Palo Alto, CA 94303
Dear Bill,
On behalf of the Palo Alto Chamber of Commerce, I would like
to lend my support for Palo Alto Bicycles’ application to be the
Bike Parking Facility provider for the University Avenue Train
Station. Based on my knowledge of the company and their
involvement in the chamber, I believe that Palo Alto Bicycles
would create an exciting and professionally managed
transportation use at the station.
Palo Alto Bicycles has made a significant commitment to
improving transportation in the local area by recently becoming
a part of the Midpeninsula Transportation Forum (formerly
known as the Try Transit Campaign.) That commitment, along
with a superior knowledge of bicycle retail, safety, repair and
commuting issues, would make them an excellent selection to
be the bike facility provider..
Further, the chamber looks forward to working with Palo Alto
Bicycles to ensure that the facility is a success. We would
anticipate continuing to collaborate on transportation issues by
jointly providing information to visitors and commuters as well
as promoting the facility to the regional business communities.
Palo Alto Bicycles, with their long history in Palo Alto and
ongoing support of the local community, seems to be well-suited
to bring much needed life to the depot. As a long-standing
supporter of the bike facility, the chamber hopes that they will be
selected to make this concept a reality. Thank you for
consideration of my comments.
Sincerely,
Susan E. Frank
President & CEO
325 Forest :\venue Palo Alto, California 9.~301-251S 650/32+3121 Fax: 650/32+1215
4-Jun-98
Att: Mr. William W. Fellman/City of Palo Alto
From: Amanda Jones/Palo Alto Bicycles, Inc.
Re: 6/2/98 Information Request for "Palo Alto Bicycle Parking Facility"
1)If Hope was unable to provide the personnel, would you still be able to run the facility?
Reply: Yes, we would continue with the Facility, but with a modification to the staffing
plan. However, we don’t anticipate HOPE not being involved.
2)In the "stand alone" financial model you did not include an estimate of the contribution
of in-kind services to be made by Palo Alto Bicycles and Hope. The committee feels that
if you could furnish a rough estimate of the dollar value of that contribution, it would be
of benefit to you in the competition with the other proposers.
Reply: Services provided at no cost to the "Palo Alto Bicycle Parking Facility:"
Palo Alto Bicycles, Inc.
Valu_..._~e
$8,000
$3,500
$2,0OO
$3,000
$2,200
$ 27,456
$ 46,156
per year
TOTAL
Description
Bike Rental Fleet
Office Equipment & Furniture
Repair Benches
Retail Fixtures
Repair Tools
Full Time Mechanic (40 hour week)
HOPE
Value
$3,000
$85o
$ 8,538 first year
$ 12,388 TOTAL
$ 58,544 TOTAL
Description
Computer Equipment
Patio Furniture
Supervisor ("Job Coach")$1,980 year 2 & on
3)The committee was unclear as to the amount of the annual subsidy after the first 18
months. Would you please furnish an estimate of the annual subsidy for each of the
three years following the first eighteen months?
Reply:After the first 18 months, required subsidized funding will be about $79,858 annually.
Attachment B
Operating Agreement with
Palo Alto Bicycles, Incorporated
OPERATING AGREEMENT
[FORMI
THIS OPERATING AGREEMENT ("Agreement") is made this day of 1 st Day of July
1998, by and between the CITY of Palo Alto, a municipal corporation ("CITY"), and Palo Alto
Bicycles, Incorporated, a California Corporation ("OPERATOR").
RECITALS:
3,51bbikestation#oikecon
A.Leland Stanford University ("UNIVERSITY") is the owner of, CITY
is the tenant and Santa Clara Valley Transportation Authority (VTA) is subtenant
of the University Avenue Train Depot (Depot) in Palo Alto. The Depot and
Baggage Room are generally shown on Exhibit "A", attached hereto and
incorporated herein by reference.
B.CITY desires to provide for a secured bicycle parking facility (Facility) for up to
150 bicycles in the approximately one thousand five hundred (1,500) square foot
Baggage Room located within the Depot.
C.The Depot and the Baggage Room are listed on the National Register and the ¯
California Register of Historical Resources, and are also listed on the CITY’s
Historic Building Inventory as Category 1 level of significance; and the CITY
desires to preserve as much of their historic significance and integrity as possible.
D. OPERATOR desires to construct the Facility in a manner that will retain the
1
Eo
Fo
historic integrity of the Depot and the Baggage Room.
OPERATOR desires to construct, operate and manage the Facility on the terms
and conditions more particularly set forth in this Agreement.
OPERATOR and CITY agree that the primary objective for OPERATOR’s
performance under this Agreement is to provide a secured bike parking Facility at
no cost to and for the benefit of the general public.
NOW, THEREFORE, in consideration for the mutual promises hereinafter set forth the pal-ties
hereto agree as follows:
I. SCOPE OF SERVICES
OPERATOR shall
A.Design, construct and convert the 1,500 sq.ft. Facility to an operational bicycle
parking facility.
B.Design and construct the Facility to be compatible with the historic design of the
Depot and the Baggage Room.
B.Operate and manage the Facility for bicycle parking, repair, rental, and retail sales.
C.Operate the Facility, at a minimum, from 6:00 a.m. to 8:00 p.m. weekdays, and 9:00
a.m. to 6:00 p.m. on weekends unless otherwise agreed to in writing by CITY.
D.Employ sufficient personnel and provide sufficient equipment for the operation of
the Facility.
E.Periodically consult with the CITY regarding such operation.
F.Keep such books and records and report to CITY as hereinafter described.
3.51bbikest ation/bikecon 2
Go Comply with all statutes, ordinances, rules, orders, regulations of federal, state,
county and CITY governments regulating the use by OPERATOR of the Facility.
H0 Not use or permit the use of the Facility in any manner that will create or tend to
create a nuisance.
II. TERM OF AGREEMENT
The initial term of this Agreement shall be for eighteen (18) months commencing on the beginning
of the first full month after date of completion of the facility.
III. RATES
CITY has determined that there will be no charge for daily bicycle parking. OPERATOR shall
determine the rates to be charged for all other OPERATOR provided servi6es at the Facility.
IV. OPERATOR’S EMPLOYEES
All of OPERATOR’s employees shall, at all times while on duty at the Facility, conduct themselves
with exemplary demeanor, be courteous and polite to the public and not engage in any raucous or
offensive conduct.
V. COMPENSATION
A. Operating Fie.
During the term hereof, CITY shall pay to OPERATOR a monthly management fee
of DOLLARS ($).
3.51bbikestation?oikecon 3
B. Expense Reimbursement.
In addition to the Operating Fee described in paragraph A, CITY will reimburse
OPERATOR for up to a maximum of TWENTY-TWO THOUSAND DOLLARS
($22,000.00) over the term of this Agreement for expenses and costs incurred by
OPERATOR for marketing and promotional activities. Reimbursement trader this
paragraph shall be paid to OPERATOR only after submission of invoices
satisfactory to the CITY, which document how the marketing and promotional
activities for which reimbursement is sought are based.upon a marketing plan pre-
approved in writing by CITY. OPERATOR agrees that all marketing and
promotional material will include wording that Bicycle Parking Facility is a Bay
Area Air Quality Management funded project.
VI. IMPROVEMENTS CONSTRUCTED BY OPERATOR
A.OPERATOR shall apply for and receive a conditional use permit for the proposed
development and operation from CITY’s Zoning Administrator.
B.OPERATOR shall apply for and shall receive a building permit for the construction
of the Facility.
C. OPERATOR shall be required to obtain approval of the Historic Resources Board.
D.OPERATOR shall in an efficient and workman like manner, cause to be designed,
constructed, and installed within the Facility appropriate improvements to adequately
accommodate those services and uses to be provided.
3.51bbikestation/bikecon 4
E.OPERATOR’S name for the Facility will be subject to CITY’S reasonable prior
approval, and OPERATOR will hold CITY harmless from and against any and all
claims for violation of trademark or other intellectual property right.
F.No additional improvements shall be constructed at the Facility without CITY’s
approval.
G.CITY agrees that it will reimburse OPERATOR for construction costs and equipment
of not to exceed SIXTY-NINE THOUSAND DOLLARS ($69,000) during
construction and upon receipt of invoices satisfactory to CITY that establish that
OPERATOR has incurred such expenses.
VII. HISTORIC PRESERVATION, PERMITS AND LICENSES
General guidelines for historic preservation are included in the Secretary of Interior’s Standards of
Rehabilitation for Historic Properties, a summary of which is attached hereto as Exhibit "B" and
incorporated herein by this reference. The CITY has also obtained an Historic Resources Report
which describes the historic significance of the structures, and suggests guidelines and standards for
potential exterior and interior modification(s) in order to assure appropriate preservation of the
property. (A copy of the report will be given to the OPERATOR prior to execution of the
Agreement). OPERATOR will design and construct the Facility and any identification signs in
such a manner as to not diminish the historic integrity of the Depot and the Baggage Room.
3.51bbikestation/bikecon 5
VIII. OP.TION TO EXTEND
Upon mutual agreement of CITY and OPERATOR, the term of this Agreement may be extended
for additional two (2) year periods.
IX. TERMINATION
Either party retains the right to terminate this Agreement upon (90) days prior written notice.
X. INDEMNITY
OPERATOR agrees to protect, indemnify, defend and hold harmless CITY, its Council members,
officers, employees and agents from any and all demands, claims, or liability of any nature,
including death or injury to any person, property damage or any other loss, caused by or arising out
of OPERATOR’s, its officers’, agents’, subcontractors’ or employees’ negligent acts, errors, or
omissions, or willful misconduct, or conduct for which applicable law may impose strict liability on
OPERATOR in the performance of or failure to perform its obligations under this Agreement.
Xl. INSURANCE
OPERATOR, at its sole cost and expense, will obtain and maintain, in full force and effect during
the term of this Agreement, the insurance coverage described in Exhibit "C", insuring not only
3.51bbikestation/bikecon 6
OPERATOR and its OPERATORS, if any, but also, with the exception of workers’ compensation,
employer’s !iability, and professional liability insurance, naming CITY as an additional insured
.concerning OPERATOR’s performance under this Agreement.
All insurance coverage required hereunder will be provided through carriers with Best’s Key Rating
Guide ratings of A:VII or higher which are admitted to transact insurance business in the State of
California.
Certificates of such insurance, preferably on the forms provided by CITY, will be filed with CITY
concurrently with the execution of this Agreement. The certificates will be subject to the approval
of CITY’s risk manager and will contain an endorsement stating that the insurance is primary
coverage and will not be canceled or altered by the insurer except after filing with CITY’s clerk
thirty (30) days’ prior written notice of such cancellation or alteration, and that the City of Palo Alto,
University and VTA are named as an additional insured except in policies of workers’ compensation,
employer’s liability, and professional liability insurance. Current certificates of such insurance will
be kept on file at all times during the term of this Agreement with the city clerk.
The procuring of such required policy or policies of insurance will not be construed to limit
OPERATOR’s liability hereunder nor to fulfill the indemnification provisions of this Agreement.
Notwithstanding the policy or policies of insurance, damage, injury, or loss caused by or directly
arising as a result of the work performed under this Agreement, including such damage, injury, or
loss arising after the Agreement is terminated or the term has expired.
3.51bbikestation/bikecon 7
XII. WORKERS’ COMPENSATION
OPERATOR, by executing this Agreement, certifies that it is aware of the provisions of the Labor
Code of the State of California which require every employer to be insured against liability for
workers’ compensation or to undertake-self-insurance in accordance with the provisions of that
Code, and certifies that it will comply with such provisions, as applicable, before commencing the
performance of the Work.
XIII. ASSIGNMENT, SUBLETTING AND ENCUMBERING PROHIBITED
Because CITY has relied on the specific background and capabilities of OPERATOR in awarding
this Agreement, any mortgage, pledge, hypothecation, encumbrance, transfer, Agreement, or
assignment (collectively referred to as encumbrance) of OPERATOR’s interest in the Facility, or
any part of portion thereof, is prohibited. Any attempted encumbrance shall be null and void and
shall confer no right, title or interest in or to this Agreement.
XIy. SURRENDER OF POSSESSION
Upon termination of this Agreement, any improvements constructed or installed on the Facility shall
become the property of the CITY, and OPERATOR shall surrender to CITY the Facility in good
order, condition and repair except for ordinary wear and tear. OPERATOR will be required to
remove all personal property upon termination of the Agreement unless other arrangements are made
3.51bbikestation/bikecon
with and approved by the CITY. OPERATOR agrees that CITY will have, without prior notice, the
right to sell or otherwise dispose of any personal property belonging to OPERATOR which has been
left on the Premises after OPERATOR has vacated the Facility.
XV. INDEPENDENT CONTRACTOR
It is expressly acknowledged that OPERATOR shall be an independent Contractor with respect to
all installations, construction, and services performed under this Agreement and OPERATOR agrees
to and accepts full and exclusive liability for the payment of any and all contributions or taxes for
social security, unemployment insurance, or old age retirement benefits, pensions, or annuities now
or later imposed under any state or federal law which are measured by the wages, salaries, or other
remuneration paid to persons employed by OPERATOR or work performed under the terms of this
Agreement, and further agrees to obey all rules and regulations which are now, or later may be,
issued or promulgated under these respective laws by any duly authorized state or federal officials;
and OPERATOR shall indemnify and save harmless CITY from any such contributions or taxes or
liability therefor.
XVI. UTILITIES
CITY shall pay all utilities except OPERATOR shall provide and pay for any and all telephone
equipment and services.
3.51bbikeslation#oikecon 9
XVII. MAINTENANCE
CITY shall be responsible for exterior maintenance and repair of the structure and main support
systems required to keep the Facility in a condition suitable to satisfy the purpose of the Agreement.
However in the event that the estimated cost of repair exceeds fifty percent (50%) of the then current
value of the Baggage Room, CITY may decide not to make such repairs. OPERATOR expressly
agrees to maintain the interior of the Facility in a safe, clean, wholesome, and sanitary condition and
shall be solely responsible for interior renovation, paint, light bulb replacement, and window glass
replacement (if breakage is determined to have been caused by OPERATOR).
OPERATOR shall designate in writing to CITY an on-site representative who shall be responsible
for the day- to-day operation and level of maintenance, Cleanliness, and general order. CITY’s Real
Property Division shall be the CITY contact for maintenance responsibilities.
XVIII. SECURITY OF FACILITY
OPERATOR shall be responsible for providing security in or about the Facility.
XIX. NO PROPERTY RIGHTS
No property rights in the premises, or right of possession thereof, are granted by this Agreement.
3.51bbikestation/bike¢on 10
XX. REMEDIES WILL BE CUMULATIVE
All rights and remedies of CITY enumerated will be cumulative and none will exclude any other
right or remedy allowed by law. Likewise, the exercise by CITY of any remedy provided or allowed
by law will not be the exclusion of any other remedy.
XXI. WAIVER
One or more waivers of any covenant, term or condition of this Agreement by either party will not
be construed by the other party as a waiver of subsequent breach of the same covenant, term or
condition. The consent or approval of either party to or of any act by the other party of a nature
requiring consent or approval will not be deemed to waive or render unnecessary consent to or
approval of any subsequent similar act.
XXII. HAZARDOUS SUBSTANCES
mo
3.51bbikestation/bike¢on
Definition As used herein, the term "Hazardous Materials" means any substance or
material which has been determined by any state, federal or local governmental authority
to be capable of poising or a risk of injury to health, safety, and property, including
petroleum and petroleum products and all of those materials and substances designated as
hazardous or toxic by the U.S. Environmental Protection Agency, the California Water
Quality Control Board, the U.S. Department of Labor, the California Depart of Industrial
11
Relations, the Califomia Department of Health Services, the California Health and Welfare
Agency in connection with the Safe Water and Toxic Enforcement Act of 1986, The U.S.
Department of Transportation, the U.S. Department of Health and Human Services, the
U.S. Food and Drug Administration or any other govemmental agency now or hereafter
authorized to regulate materials and substances in the environment. Without limiting the
generality of the foregoing, the term "Hazardous Materials" shall include all of those
materials and substances defined as "toxic materials" in Sections 66680 through 66685 of
Title 22 of the California Code of Regulations, Division 4, Chapter 20, as the same may be
amended from time to time.
Bo .OPERATOR’ s.. Use of the Facility During the Term of this Agreement,
OPERATOR shall abide and be bound by all of the following requirements:
OPERATOR shall comply with all laws now or hereafter in effect relating to the use
of Hazardous Materials on, under or about the CITY property, and OPERATOR shall
not contaminate the CITY property, or its sub-surfaces, with any Hazardous
Materials.
°OPERATOR shall restrict its use of Hazardous Materials on the CITY property to
those kinds of materials that are normally used in maintaining the CITY property.
Disposal of any Hazardous Materials on the CITY property is strictly prohibited.
3.51bbikestationPoikecon 12
o OPERATOR shall be solely and fully responsible for the reporting of all Hazardous
Materials releases to the appropriate public agencies, when such releases are caused
¯ by or result from OPERATOR’s activities on the CITY property. OPERATOR shall
immediately inform CITY of any releases of Hazardous Materials, whether or not the
releases is in quantities that would otherwise be reportable to any public agency.
OPERATOR shall be solely and fully responsible and liable for such releases on the
Premises, or into CITY’s sewage or storm drainage systems. OPERATOR shall take
all necessary precautions to prevent any of its Hazardous Materials from entering into
any storm or sewage drain system or from being released on the Premises.
OPERATOR shall remove Hazardous Materials in accordance with all laws. In
addition to all other rights and remedies of CITY hereunder, if the release of
Hazardous Materials caused by OPERATOR is not removed by OPERATOR, CITY
may pay to have the same removed and OPERATOR shall reimburse CITY for such
costs within five (5) days of CITY’s demand for payment.
OPERATOR shall protect, defend, indemnify and hold harmless CITY from and
against all loss, damage, or liability (including, without limitation, the cost of any
cleanup and remediation of Hazardous Materials) which CITY may sustain as a result
of the presence or cleanup of Hazardous Materials on the Premises, arising out of or
resulting from OPERATOR’s management of the Facility.
3.51bbikestationPoikecon 13
o OPERATOR’s obligation under this clause shall survive the expiration or earlier
termination of this Agreement.
XXIII. INSPECTION
CITY’S employees and agents shall have the right at all reasonable times to inspect the Facility to
determine if the provisions of this Agreement are being complied with.
XXIV. ATTORNEY’S FEES
In the event that either party fails to comply with any of the terms of this Agreement and the other
party commences legal proceedings to enforce any of the terms of this Agreement, the Prevailing
party in any such suit will receive from the other attorneys’ fees including applicable court costs.
XXV. NOTICES
Any and all notices to be given under this Agreement or required by law to be served on either of
the parties may be given or served by certified mail deposited in the United States mail, postage
prepaid, addressed as follows:
3.51bbikestation/bikecon 14
To OPERATOR:To CITY:
City Clerk
City of Palo Alto
P.O. Box 10250
Palo Alto, Calif. 94303
with a copy to:
Manager, Real Property
City of Palo Alto
P.O. Box 10250
Palo Alto, Calif. 94303
Any notices may be personally served on the party to be given notice. Any notice served by means
of the United States mail will be effective from the date of mailing.
3.51bbikestation/bike¢on 1 5
XXVI. RECORDS AND ACCOUNTS
Records.
OPERATOR shall, at all times during the term of this Agreement, keep or cause to be kept
true and complete books, records, and accounts of all financial transactions conducted in the
operation of all business activities, of whatever nature, conducted pursuant to the rights
granted herein. The records, books and accounts shall be kept or made available to CITY
at a location within Santa Clara or San Mateo County. The records must be supported by
source documents such as sale slips, cash register tapes, purchase invoices, or other pertinent
documents. Except as may be otherwise provided by this Agreement, all retail sales, and
other incidental business revenue shall be recorded by means of cash registers or other
comparable devices which display to the customer the amount of the transaction and
automatically issue a receipt. The registers shall be equipped with devices which lock in
sales totals and other transaction records, or with counters which are not resettable and which
record transaction numbers and sales details. Totals registered shall be read and recorded at
the beginning and end of each day. Retail sales may be recorded by a system other than
cash registers or other comparable devices provided that system is approved by the Director
of Administrative Services or his or her designee.
3.51bbikestation/bikecon
The Accounting year.
The accounting year shall be twelve full calendar months. The accounting year may be
established by OPERATOR, provided OPERATOR has notified CITY in writing of the
16
accounting year to be used. The accounting year shall be deemed to be approved by CITY
unless CITY objects to OPERATOR’s selection in writing within sixty (60) days of receipt
of OPERATOR’s written notification.
In the event OPERATOR fails to establish an accounting year of its choice, regardless of the
cause, the accounting year shall be synonymous with the twelve (12) month period following
commencement of this Agreement.
Once an accounting year is established, it shall be continued through the term of the
Agreement unless CITY specifically approves in writing a different accounting year. CITY
shall approve a change in accounting years only in the event of undue hardship being placed
on either the OPERATOR or CITY, and not because of mere convenience or inconvenience.
C.Financial Statements and Audit by CITY.
Within one hundred twenty (120) days after the end of each accounting year, OPERATOR
shall, at its own expense, submit to CITY an unaudited balance sheet and income statement.
Within one hundred eighty (180) days after the end of each accounting year, OPERATOR
shall, at its own expense, submit to CITY a balance sheet and income statement prepared
and audited by a Certified Public Accountant, reflecting business transacted on or from the
Facility during the preceding accounting year. The Certified Public Accountant must attest
that the balance and income statement submitted are an accurate representation of
OPERATOR’s records as reported to the United States of America for income tax purposes.
3.51bbikestation/bikecon 1 7
The Director of Administrative Services or his or her designee may accept alternatives to
the above Certified Public Accountant-audited statement provided that in the Director’s
opinion, the alternative provides sufficient assurance that the financial statement accurately
reflect business transacted on or from the Facility.
All of OPERATOR’s accounting records and supporting source documents shall be made
available to CITY’s representatives at any and all reasonable time during the term of this
Agreement and within two (2) years after expiration or termination of this Agreement, for
the purpose of determining the accuracy of the monthly statements of sales and monies
received.
Notwithstanding the previous paragraph, the full cost of any such audit by CITY, as
determined by CITY, shall be borne by OPERATOR if OPERATOR has failed to maintain
true and complete books, records, accounts, and supporting source documents in accordance
with subparagraph A above. The adequacy of records shall be determined by the City
Auditor. Otherwise, CITY shall bear the cost of any such audit.
Upon the request of CITY, OPERATOR shall promptly provide, at OPERATOR’s expense, .
necessary data to enable CITY to fully comply with any and all requirements of the State of
California or the United States of America for information or reports relating to this
Agreement and to OPERATOR’s use of the Facility. Such data shall include, if required, a
detailed breakdown of OPERATOR’s use of the Facility, and/or a detailed breakdown of
3.51bbikestation/bikecon 18
OPERATOR’S receipts and expenses.
XXVII. NONDISCRIMINATION
OPERATOR and its employees shall not discriminate against any person because of race, color,
religion, ancestry, age, sex, national origin, disability or sexual preference. OPERATOR shall not
discriminate against any employee or applicant for employment because of race, color, religion,
ancestry, sex, age, national origin, disability or sexual preference. OPERATOR covenants to meet
all requirements of the Palo Alto Municipal Code pertaining to nondiscrimination ~n employment.
If OPERATOR is found in violation of the nondiscrimination provision of the State of California
Fair Employment Practices Act or similar provisions of federal law or executive order in the conduct
of its activities under this Agreement by the State of California Fair Employment Practices
Commission or the equivalent federal agency or officer, it shall thereby be found in default under
this Agreement, and such default shall constitute a material breach of this Agreement. CITY shall
then have the power to cancel or suspend this Agreement in whole or in part.
XXVIII. CONFLICT OF INTEREST
OPERATOR warrants and covenants that no official or employee of CITY nor any business entity
in which any official or employee of CITY is interested has been employed or retained to solicit or
aide in the procuring of this Agreement or will be employed in the performance of this Agreement
without the divulgence of such fact to CITY. In the event that CITY determines that the employment
3.51bbikestation/bikecon 1 9
of any such official, employee or business entity is not compatible with such official’s or employee’s
duties as an official or employee of CITY, OPERATOR upon request of CITY shall immediately
terminate such employment. Violation of this provision constitutes a serious breach of this
Agreement and CITY may terminate this Agreement as a result of such violation.
XXIX. ENTIRE AGREEMENT
It is understood that there are no oral agreements between the parties affecting this Agreement, and
this Agreement supersedes and cancels any and all previous negotiations and understanding, if any,
between the parties and none will be used to interpret or construe this Agreement.
IN WITNESS WHEREOF, the parties have executed this Agreement the year first above written.
OPERATOR, Palo Alto Bicycles, a
Califomia Corporation:
CITY OF PALO ALTO, a municipal
corporation:
By By:
Its
Mayor
3.51bbikestafion/bikeeon 20
ATTEST:
By
City Clerk
APPROVED AS TO FORM:
By
Senior Assistant City Attorney
RECOMMENDED FOR APPROVAL:
By.
City Manager
By.
Director of Administrative Services
Department
By.
Manager, Real Property
3.51bbikestation/bikecon 21
CONSENT:
THE BOARD OF TRUSTEES OF THE LELAND STANFORD JUNIOR UNIVERSITY, a body
having Corporate powers under the laws of the State of California, as Master Lessor of the Premises
under the lease dated June 10, 1915, hereby consents to this Operating Agreement with Palo Alto
Bicycles, Incorporated.
THE BOARD OF TRUSTEES OF THE LELAND STANFORD JR. UNIVERSITY
By:
Its:
3.51bbikestation/bike¢on 22
SANTA CLARA VALLEY TRANSIT AUTHORITY, a special district under the California Utilities
Code, as sub-tenant of the Premises under the sub-lease dated July 31, 1981, hereby consents to this
Operating Agreement with Palo Alto Bicycles, Incorporated.
SANTA CLARA VALLEY TRANSIT AUTHORITY
By:
Its:
3oSIbbikestatiordbikecon 23