HomeMy WebLinkAboutStaff Report 363-10TO:
FROM:
DATE:
HONORABLE CITY COUNCIL
CITY MANAGER
SEPTEMBER 27,2010
DEPARTMENT: PLANNING AND
COMMUNITY ENVIRONMENT
CMR: 363:10
REPORT TYPE: CONSENT CALENDAR
SUBJECT: Approval of Contract Amendment No. 15 extending the term of the Rail
Shuttle Bus Administration Agreement with the Peninsula Corridor Joint
Powers Board through 6/3012011 and increasing the cumulative
expenditure limit by $198,118 for a total of $2,839,337
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, 2011.
2) Approve an increase of $198,118 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, 2010 through June 30, 2011. This will increase the cumulative
contract expenditure limit for the period from FY 2003 through FY 2011 to $2,839,337.
BACKGROUND
In 1999, the City and JPB entered into the Rail Shuttle Bus Administration agreement for the
provision of shuttle bus services for the Palo Alto shuttle program, through the JPB Caltrain
shuttle bus program. The agreement provides that the agencies may extend the term of the
agreement upon mutual consent. There have been fourteen contract extensions since the original
agreement was executed.
The original JPB agreement contained terms and conditions for two distinct services: (1) the
basic EmbarcaderolBaylands Caltrain commuter peak period shuttle route, which is part of the
Caltrain commuter shuttle program and subsidized up to 75% by the JPB, and (2) expanded
shuttle routes, including the Crosstown shuttle and noontime Embarcadero service, funded
exclusively by City of Palo Alto. In June, the City Council. adopted a reduced budget for the
shuttle program which provided for the complete elimination of the noontime Embarcadero
shuttle and a 50% reduction in service on the Crosstown shuttle (service every 60 minutes
instead of every 30 minutes). These changes were implemented on August 23, together with
CMR: Page 1 of3
adjustments to both the Embarcadero and Crosstown shuttle timetables. The new timetables
maintain service to Caltrain and key activity centers and community facilities in Palo Alto, as
well as service to Palo Alto High School, Jordan Middle School and Castilleja School during
school commute periods.
DISCUSSION
The fifteenth amendment to the agreement, in letter format (Attachment A) dated June 22, 2010,
provides for continued shuttle services for the Palo Alto shuttle program from July 1, 2010,
through June 30, 2011. Due to the late receipt of this letter agreement, staff was not able to
agendize this item for Council approval prior to the Council recess. The JPB has continued to
provide uninterrupted shuttle service during the interim until the contract extension is approved
by the City CounciL
In order to cover the additional contract expense from July 1,2010 through June 30, 2011, staff
is requesting that the Council approve the attached amendment to the Rail Shuttle Bus
Administration Agreement (S0I14750) which will enable the Cal train shuttle program shuttle
vendor to operate all Palo Alto shuttle services, including both the Embarcadero/Baylands
commute period shuttles and reduced Crosstown shuttle.
The City'S total shuttle program contract expense for this fiscal year is estimated to be $215,240.
The contract amendment with the JPB stipulates that the City reimburse the JPB a sum of
$44,340 equal to 25 percent of the annual cost of the peak period Embarcadero/Baylands
commute shuttle. Last year, the actual cost for the Embarcadero/Baylands shuttle was $44,150.
The City also reimburses the JPB for 100 percent of the annual Crosstown shuttle expense
estimated to be approximately $170,900 this fiscal year. By comparison, last year the Crosstown
shuttle expense was $291,000 plus $30,000 for the now discontinued noontime Embarcadero
shuttle. Staff also recommends that Council authorize an increase in the encumbrance spending
limit for the Rail Shuttle Bus Agreement with Caltrain in the amount of $198, 118 to supplement
existing contract encumbrances of approximately $17,122 to cover the projected expenses for the
full year of the EmbarcaderoIBaylands and Crosstown shuttle operations.
Next Steps
Staff has tried to work with JPB staff in recent 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 Crosstown Shuttle, but a revised agreement with JPB could not be
reached. Last summer, staff issued a Request for Proposals (RFP) for a direct City contract with
a shuttle provider for the Crosstown, but did not select a vendor due to the uncertain status of the
future of the shuttle program during 2009110. Staff issued a second request for proposals for a
new shuttle provider in mid-August 2010. Proposals were received from five shuttle companies
on September 9th and staff is in the process of evaluating the proposals and will be
recommending a preferred vendor within the next month and a new service contract forwarded to
Council for approval by November. It is staffs expectation that the new contract for the
Crosstown shuttle will begin no later than December 2010.
When staff returns to Council with the award of contract for the· new operator for the Crosstown
shuttle, staff would also request a reduction in the JPB contract expense limit to remove funding
CMR: Page 2 of3
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 shuttle from Caltrain shuttle program. However, staff 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 Crosstown shuttle by December 1, staff will return to
Council with an update.
RESOURCE IMPACT
The City's total shuttle program contract expense for this fiscal year is estimated to be $215,240.
Sufficient funding is available in the 2010/2011 operating budget 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 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.
ATTACHMENTS
A. Caltrain Joint Powers Board Contract Extension Letter Agreement dated June 22,2010.
PREPARED BY: _____ ----<...A.----"'<....::.&A=\.fj. ~~-tl-g-+'~~~~'------------
d'A YLE LIKENS
DEPARTMENTAPPROVAL:-r~7-~-&~+r __________________ __
~.-C
Director of Planning and
Community Environment
CITY MANAGER APPROVAL: ------~-+--------~~~--~r+----------
City Manager
CMR: Page 3 of3
June 22, 2010
Gail Likens
City of Palo Alto
Transportation Planner
PO Box 10250
Palo Alto, Ca94303
ATTACHMENT A
RE: EXTENSION OF BAYLANDSIEMBARCADERO SHUTTLE BUS
ADMINISTRATION AGREEMENT
Dear Ms. Likens:
BOARD OF DIRECTORS 2010
SEAN ElSBERND. CHAIR
MARK CHURCH. VICE CHAIR
OMARAHMAO
JOSE CISNEROS
NATHANIEL P. FORO, SR.
DON GAGE
ASH KALRA
ARTHUR L. LLOYD
KEN YEAGER
MICHAElJ. SCANLON
EXECUTIVE DIRECTOR
The existing Shuttle Bus Administration Agreement between the City of Palo Alto and
the Peninsula Corridor Joint Powers Board ("JPB") dated March 30, 1998 ("Agreement'')
terminates on June 30, 2010. This Letter Agreement extends the term ofthe Agreement
for a one year period only from July 1, 2010 through June 30, 2011 ("Extension Period")
by mutual consent, as permitted in the Agreement.
You will be required to pay the JPB $44,340 during the Extension Period, constituting
twenty-five percent (25%) of the $177 ,359 estimated cost of operating the
Baylands/Embarcadero Cal train 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.
lfthe terms ofthis Letter Agreement are acceptable to you, please sign below, keep a
copy ofthis 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, 2010.
PENINSULA CORRIDOR JOINT POWERS BOARD
1250 San Carlos Ave. P.O. Box 3006
San Carlos, CA 94070-1306 (650)508-6269
Cal
BOARD OF DIRECTORS 2010
SEAN ELSBERND, CHAIR
MARK CHURCH, VICE CHAIR
OMARAHMAD
JOSE CISNEROS
NATHANIEL P. FORD, SR.
DON GAGE
ASH KALRA
ARTHUR L. LLOYD
KEN YEAGER
MICHAELJ.SCANLON
EXECUTIVE DIRECTOR
If you have questions about what these changes mean to your program, you can contact
me at leep@samtralls.com, or at (650) 508-6433.
Sincerely,
Paul Lee
Manager, Bus Contracts
Agreed to and accepted this __ day of ______ , 2010.
City of Palo Alto By:
Name: ________ ~ ________________ ___
Its:
PENINSULA CORRIDOR JOINT POWERS BOARD
1250 San Carlos Ave, -P.O. Box 3006
San Carlos, CA 94070-1306 (650)508-6269