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HomeMy WebLinkAboutStaff Report 362-08TO: FROM: DATE: SUBJECT: City of Palo Alto City Manager’s Report HONORABLE CITY COUNCIL CITY MANAGER DEPARTMENT: PLANNING AND COMMUNITY ENVIRONMENT SEPTEMBER 15, 2008 CMR: 362:08 APPROVAL OF CONTRACT AMENDMENT NO. 13 EXTENDING THE TERM OF THE RAIL SHUTTLE BUS ADMINISTRATION AGREEMENT WITH THE PENINSULA CORRIDOR JOINT POWERS BOARD THROUGH 6/30/2009 AND INCREASING THE EXPENDITURE LIMIT BY $365,000 FOR A TOTAL OF $2,242,419 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 term of the agreement through June 30, 2009. 2)Approve an increase of $365,000 in the expenditure limit of the existing Rail Shuttle Bus Agreement (S0114750) with the JPB, for a total expenditure of $2,242,419 since 2003, to cover the City’s shuttle program operating costs during the period July 1, 2008 through June 30, 2009. 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 term of the agreement upon mutual consent. There have been twelve contract extensions since the original agreement was executed. DISCUSSION The thirteenth amendment to the agreement, in letter format (Attachment A) dated June 22, 2008, provides for continued shuttle services for the Palo Alto shuttle program from July 1, 2008 through June 30, 2009. 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 Council. CMR:362:08 Page 1 of 3 The contract with the JPB stipulates that the City reimburse the JPB a sum of $42,071, equal to 25 percent of the cost of the peak period Embarcadero shuttles and that the City also reimburse the JPB for 100 percent of the shuttle program contract costs (approximately $323,000) for the all-day Crosstown shuttle and expanded noontime service on the Embarcadero shmtle. Thus, the City’s total contract expense to continue the current shuttle program service level for this fiscal year is estimated to be $365,000. In order to cover the additional contract expense through June 30, 2009, staff is requesting that the Council approve an increase of $365,000 in the contract expenditure limit for the Rail Shuttle Bus Administration Agreement (S0114750). with the Caltrain Joint Powers Board. In December 2007, the City Council endorsed the Community Bus service plan for VTA Line 88. The new Community Bus Line 88 route and schedule were implemented on July 14th. Further service enhancements targeted to the school commute at Gunn High, and Temaan and JLS Middle Schools in south Palo Alto went into effect on August 25, 2008. At that time, the Crosstown shuttle service extension to Gunn High School was discontinued. The shuttle continues to operate on the core route from the downtown Caltrain station to Stevenson House on East Charleston Road, serving many activity centers, neighborhoods, community facilities and Jordan Middle School. Despite this restructuring of the shuttle routes in conjunction with the start up of the new VTA Community Bus service, the City shuttle program will not realize significant cost savings because these savings are offset by an annual 5% increase in the hourly rate for contracted shuttle services which occurs each October under the JPB contract with service operator, Parking Company of America. Staff has tried to work with JPB staff over the past year to develop a more comprehensive shuttle agreement which would clarify the responsibilities of the JPB, JPB’s contractor and City for the provision of contracted expanded and mid-day shuttle services, but JPB has continued to delay responding. If a revised agreement with JPB cannot be reached regarding the expanded service, staff plans to issue a request for proposals for a new shuttle provider this fall. RESOURCE IMPACT Funding included in the 2008/2009 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 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. CMR:362:08 Page 2 of 3 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. ATTACHMENTS A. Caltrain Joint Powers Board Contract Extension Letter Agreement dated June 22, 2008. PREPARED BY: DEPARTMENT APPROVAL: CITY MANAGER APPROVAL: (JAYLE LIKENS Transportation Manager CURTIS WILLIAMS Interim Director of Planning and Community Environment anager ~) CMR:362:08 Page 3 of 3 June 22, 2008 Gail Likens City of Palo Alto Transportation Planner PO Box 10250 Palo Alto, Ca 94303 ATTACHMENT A BOARO OF DIRECTORS 2008 JIM HARTNETT, CHAIR DON GAGE, VICE CHAIR JOSE CISNEROS SEAN ELSBERND NATHAi’IIEL P. FORD, SR. JERRY HILL ARTHUR L. LLOYD FORREST WILLIAivIS KEN YEAGER MICHAEL J. SCANLON EXECUTIVE DIRECTOR EXTENSION OF BAYLANDS/EMBARCADERO SHUTTLE BUS ADMINISTRATION AGREEMENT Dear Ms. Likens: The existing Shuttle Bus Administration Agreement between the City of Palo Alto and the Peninsula Corridor Joint Powers Board ("JPB") dated Match 30, 1998 ("Agreement") terminates on June 30, 2008. This Letter Agreement extends the term of the Agreement for a one year period only from July 1, 2008 through June 30, 2009 ("Extension Period") by mutual consent, as permitted in the Agreement. You will be required to pay the JPB $42,071 during the Extension Period, constituting twenty-five percent (25%) of the $168,282 estimated cost of operating the Baylands/Embarcadero Caltrain Shuttle during the Extension Period. Payments for your midday program will continue to 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 terms of this Letter Agreement are acceptable to you, please sign below, 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, 2008. 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(?i.~samtrans.com, or at (650) 508-6433. Sincerely, Paul Lee Manager, Bus Contracts Agreed to and accepted this __ City of Palo Alto day of By: Name: .,2008.