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HomeMy WebLinkAboutStaff Report 398-09TO: FROM: DATE: City of Palo Alto City Manager's Report HONORABLE CITY COUNCIL 11 CITY MANAGER OCTOBER 5, 2009 DEPARTMENT: PLANNING AND COMMUNITY ENVIRONMENT CMR: 398:09 REPORT TYPE: CONSENT CALENDAR SUBJECT: Approval of contract amendment no. 14· extending the term of the rail shuttle bus administration agreement' with the Peninsula Corridor Joint Powers Board through 6/30/2010 and increasing the expenditure limit by $368,000 for a total of $2,610,419 RECOMMENDATION'· Staff recommends that Council: 1) Authorize the City Manager to execute the attached amendment to the Rail Shuttle Bus Administration Agreement with the Peninsula Corridor Joint Powers Board (JPB), extending the telTIl of the agreement through June 30, 2010. 2) Approve an increase of $368,000 in the expenditure limit of the existing Rail Shuttle Bus Agreement (SOl14750) with the JPB to cover the City'S shuttle program operating costs during the period July 1, 2009 through June 30, 2010. This will increase the contract expenditure limit to $2,610,419 for the period from FY 2003 through FY 2010. BACKGROUND In 1999, the City and JPB entered into the Rail Shuttle Bus Administration agreement for the provision of shuttle bus services in Palo Alto, as part of the JPB shuttle bus program. The agreement provides that the agencies may extend the telTIl of the agreement upon mutual consent. There have been thirteen contract extensions since the original agreement was executed. DISCUSSION The fourteenth amendment to the agreement, in letter format (Attachment A) dated June 22, 2009, provides for continued shuttle services for the Palo Alto shuttle program from July 1, 2009, thrqugh June 30, 2010. 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. The JPB has continued to provide uninterrupted shuttle service during the interim until the contract extension is approved by the City Council. CMR:398:09 Page 1 of3 The JPB contract contains terms and conditions for two distinct services: . (1) the basic Embarcadero/Bayland Caltrain commuter peak period shuttle route, which is part of the Caltrain commuter shuttle program, and (2) expanded and n1idday shuttle routes, including the noontime Embarcadero shuttle and Crosstown shuttle, which are exclusively Palo Alto shuttles. The contract with the JPB stipulates that the City reimburse the JPB a sum of $45,941 equal to 25 percent of the annual cost of the peak period Embarcadero/Baylands shuttles and that the City also reimburse the JPB for 100 percent of the annual expanded all-day Crosstown shuttle and noontime Embarcadero shuttle costs (approximately $322,000). Thus, the City's total contract expense to continue. the current shuttle program service level for this fiscal year is estimated to be $368,000. The City reimburses the JPB on a monthly basis for the cost of actual services rendered during the preceding month. Staff has tried to work with JPB staff over the past two years to develop a more comprehensive shuttle agreement which would clarify the responsibilities of the JPB, JPB' s contractor, and City for the provision of the City~s expanded Crosstown Shuttle and the noontime Embarcadero Shuttle, but the JPB has continued to delay responding. Because a revised agreement with JPB could not be reached regarding the expanded service, in late July st'lff issued a request for proposals for a new shuttle provider for these routes. Proposals were received from five shuttle companies on September 1 st and staff is' in the process of evaluating the proposals and will be recommending a preferre-d. vendor within the next month and a new service contract forwarded to Council for approval in November. It is staffs expectation that the new contract for the Crosstown Shuttle and midday shuttle will begin in late 2009 or January 2010. In order to cover the additional contract expense through June 30, 2009, staff is requesting that the Council approve the shuttle contract amendment for the Rail Shuttle Bus Administration Agreement (S0114750) which will enable all Palo Alto shuttle services, including both the Embarcadero/Bayhtnds commute period shuttles and expanded Crosstown/midday services to continue uninterrupted until a new vendor is in place for the latter services. Staff also recommends that Council authorize an increase in the encumbrance spending limit for the rail shuttle bus agreement with Caltrain by in the amount of $368,000 to cover the full year of the Embarcadero/Baylands commute shuttle as well as the expanded Crosstown/midday services. When staff returns to Council with the award of contract for the new operator for the Crosstown and midday shuttles, staff would also request a reduction in the JPB contract expense limit to remove funding for the balance of the fiscal year that would be covered by the new shuttle operator. As soon as possible, staff will notify the JPB of the expected start date for the new shuttle operator. JPB staff have indicated they too would make appropriate adjustments in their contract with their shuttle vendor. The purchase of additional expanded services is allowed, but not required in the contract with the JPB, so it is not expected that the City/JPB agreement would need to be modified to drop the Crosstown and midday shuttle from Caltrain shuttle program. However,rstaff will work with JPB to develop a new agreement for the provision of Caltrain peak shuttle services to be effective at the termination of this amendment. If a contract between the City and a new shuttle service operator is not in place for the expanded services by December 31, staff will return to Council with an update. CMR:398:09 Page 2 of3 RESOURCE IMPACT Funding included in the 2009/2010 operating budget for the Palo Alto Shuttle program is sufficient to cover these contracted service and operating costs. No additional resources 'will be required at this time. The extension of this agreement with the JPB will not prevent staff from implementing a new contract for the Crosstown and midday shuttles or 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 REVIEW On August 2, 1999, the City Council approved a Negative Declaration finding the shuttle project would not result in any significant environmental impact. PREPAREDBY: _______________ +~~ __ ~~~G---~--tJ-·~-·--~------~--­!Sl~lnE LIKENS Management Specialist DEPARTMENT APPROVAL: --<J~N\L13Io,""r/-:!~~....-!!I\..s---"'..::!IIo,j..l-.~~~~ ...... ...:;..;:;....,..J----- CURTIS WILLIAMS Director of Planning and Community Environment CITY MANAGER APPROV AL: ___ ~-----?"--f-! _~ _1----"-' _11_1_-----,/:'--t-~--Q_F__ ~ __ _ ~.tKMES KEENE lJ ~ 0ty Manager \. ATTACHMENTS A. Caltrain Joint Powers Board Contract Extension Letter Agreement dated June 2009. /' i CMR:398:09 Page 3 of3 June 22, 2009 Gail Likens City of Palo Alto Transportation Planner PO Box 10250 Palo Alto, Ca 94303 Attachment A JUL 1 RE: EXTENSION OF BAYLANDS/ElVIBARCADERO SHUTTLE BUS ADMINISTRATION AGREEMENT Dear Ms. Likens: BOARD OF DIRECTORS 2009 DON GAGE, CHAIR SEAN ELSBERND, VICE CHAIR IVIARK CHURCH JOSE CiSNEROS NATHANIEL P. FORD, SR. JIM HARTNETT ASH KALRA ARTHUR L. LLOYD KEN YEAGER IVIICHAEL J. SCANLON EXECUTIVE DIRECTOR The existing Shuttle Bus Administrati0n Agreement between the City of Palo Alto and the Peninsula Corridor.loint Powers Board ("JPB") dated March 30, 1998 ("Agreement") terminates on June 30, 2009. This Letter Agreement extends the tenn of the Agreement for a one year period only from July 1,2009 through June 30,2010 ("Extension Period") by mutual consent, as pennitted in the Agreement. You will be required to pay the JPB $45,941 during the Extension Period, constituting twenty-five percent (25%) of the $183,765 estimated cost of operating the Baylands/Embarcadero Caltrain Shuttle during the Extension Period. Payments for your midday program will continue t<;> be billed directly to Palo Alto as before. The Agreement, when extended, will remain in effect during the Extension Period in all respects except as expressly revised in this letter. If the tem1S of this Letter r'\.greement are acceptable to you, please sign belo"v, keep a copy of this letter for your files, and return the original letter to me. The JPB's obligation to fund the shuttle during the Extension Period is conditioned upon our receipt of this Letter Agreement no later than August 30,2009. PENINSULA CORRIDOR JOINT POWERS BOARD 1250 San Carlos Ave. -P.O. Box 3006 San Carlos, CA 94070-1306 (650)508-6269 If you have questions about what these changes mean to your program, you can contact me at leep(c1.~SaITItrans.conl, or at (650) 508-6433. Sincerely, Paul Lee Manager, Bus Contracts Agreed to and accepted this __ day of ,2009. City of Palo Alto By: r i Name: __________________________ __ Its: