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HomeMy WebLinkAboutStaff Report 388-07TO: FROM: City of Palo Alto City Manager’s Report HONORABLE CITY COUNCIL CITY MANAGER DEPARTMENT: PLANNING AND COMMUNITY ENVIRONMENT DATE:OCTOBER 15, 2007 CMR:388:07 SUBJECT:APPROVAL OF CONTRACT EXTENSION AND INCREASE IN THE EXPENDITURE LIMIT OF THE RAIL SHUTTLE BUS SER’~qCE ADMINISTRATION AGREEMENT WITH THE PENINSULA CORRIDOR JOINT POV~rERS BOARD (PALO ALTO SHUTTLE PROGRAM) RECOMMENDATION Staff recommends that Council: 1)Authorize the City Manager to execute the attached extension to the Rail Shuttle Bus Administration Agreement with the Peninsula Corridor Joint Powers Board (JPB), extending the tem~ of the agreement through June 30, 2008. 2)Approve an increase of $374,200 in the expenditure limit of the existing Rail Shuttle Bus Agreement (S0114750) with the JPB to cover the City’s shuttle program operating costs during the period July 1, 2007 throu~ June 30, 2008. BACKGROUND In 1999, the City of Palo Alto and JPB entered into the Rail Shuttle Bus Service Administration agreement for the provision of shuttle bus services in Palo Alto, as part of the JPB shuttle bus progrmn. The agreement provides that the agencies may extend the term of the agreement upon mutual consent. There have been eleven contract extensions since the oriNnal agreement was executed. DISCUSSION The twelfth amendment to the agreement, in letter format (Attacbanent A) dated June 22, 2007, provides for continued shuttle services for the Palo Alto shuttle program from July 1, 2007 tlu’ough June 30, 2008. Due to the late receipt of this letter agreement, staff was not able to agendize this item for Council approval prior to the Council vacation break. The JPB has continued to provide uninterrupted shuttle service during the interim until the contract extension is approved by the City. The contract with the JPB stipulates that the City reimburse the JPB for 25 percent of the cost of the peak period for Embarcadero shuttles and 100 percent for the remainder of the shuttle program contract costs, including the full local funding of the Crosstown shuttle costs and noontime service on the Embarcadero shuttle. The City’s total contract expense to continue the current shuttle program service level for the twelve-month period is estimated to be $374,200. In CMR:388:07 Page 1 of 2 order to cover the additiona! contract expense through June 30, 2008, staff is requesting that the Council approve an increase of $374,200 in the contract expenditure limit for the contract with the Caltrairi Joint Powers Board. These funds are currently in the City’s operating budget for the shuttle se~wice. This General Fund expense will be reduced by approximately $40,000, the Palo Alto Unified School District’s share of the cost of shnttle extension to Gram High School for the fiscal year. In September, City staff and VTA staff initiated the conmmnity bus study for Palo Alto. The study will look at all of the transit services in Palo Alto including the VTA lines and the Palo Alto, Stanford Marguerite shuttles. The results of this study may have implications for the provision of shuttle services in 2008/09. However, independent of the community bus study, staff plans to investigate options for the provision of contracted shuttle services on the Embarcadero and Crosstown Shuttles next fiscal year and ~vill report back to Council in the spring. RESOURCE IMPACT Funding included in the 2007/2008 operating budget for the Palo Alto Shuttle is sufficient to cover these costs. No additional resources will be required at this time. The extension of this ageement with the YPB will not prevent staff from implementing additional shuttle operational efficiency improvements during the course of the year as needed. POLICY IMPLICATIONS This request is consistent with existing Council direction to continue and expand the Palo Alto shuttle project. ENVIRONMENTAL RE~qE~,V On August 2, 1999, the City Council approved a Negative Declaration finding the shuttle project would not result in any si~aificant enviro~maental impact. PREPARED BY: GAYLE LIKENS DEPARTMENT APPROVAL: ger ;TEVE EMSLIE Director of Plmming and Community Envirormaent CITY MANAGER APPROVAL: Assistant City Manager ATTACHI~IENTS A. Caltrain Joint Powers Board Contract Extension Letter Ageement dated June 22, 2007. CMR:388:07 Page 2 of 2 If you have questions about what these changes mean to your program, you can contact me at leep(7~samirans.com, or at (650) 508-6433. Sincerely, Paul Lee Manager, Bus Contracts Agreed to and accepted this __ City of Palo Alto day of By: ,2007. Name: Its: