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HomeMy WebLinkAboutStaff Report 343-05,'e , City of Palo Alto City Manager's Repor TO: FROM: HONORABLE CITY COUNCIL CITY MANAGER DEPARTMENT: PLANNING AND COMMUNITY ENVIRONMENT DATE: AUGUST 1,2005 CMR:343:05 SUBJECT: PALO ALTO SHUTTLE PROGRAM-APPROVAL OF CONTRACT EXTENSION NO. 10 AND INCREASE IN THE EXPENDITURE LIMIT OF THE RAIL SHUTTLE BUS SERVICE ADMINISTRATION AGREEMENT WITH THE PENINSULA CORRIDOR JOINT POWERS BOARD 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, 2006. 2) Approve an increase of $374,200 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, 2005 through June 30,2006. BACKGROUND In 1999, the City 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 program. The agreement provides that the agencies may extend the term of the agreement upon mutual consent. There have been nine contract extensions since the original agreement was executed. DISCUSSION The tenth amendment to the agreement, in letter format (Attachment A) dated 6/22/05, provides for continued shuttle services for the Palo Alto shuttle program from July 1, 2005 through June 30, 2006. Due to the late receipt of this letter agreement, staff was not able to agendize this item for Council approval prior to the end of the fiscal year. 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 Embarcadero shuttles and 100 percent for the remainder of the shuttle program contract costs. The City's total contract expense to continue the current shuttle program service level for the twelve-month period ending June 30, 2005 is estimated to be $374,200. ~n order to cover the full CMR:343:05 Page 1 of2 additional contract expense through June 30, 2005, staff is requesting that the Council approve an increase of $374,200 in the contract expenditure limit for the contract with the Caltrain Joint Powers Board. This General Fund expense will be reduced by approximately $36,000, the Palo Alto Unified School District's share of the cost of shuttle extension to Gunn High School, for the fiscal year. In addition, the Council has authorized staff to initiate a shuttle donation campaign targeted at the users and beneficiaries of the shuttle services to raised private contributions to offset a small portion of shuttle operating costs. RESOURCE IMPACT Funding provided in the 2005-2006 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 agreement with the JPB will not prevent staff from implementing additional shuttle operational efficiency improvements dl.lring 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 6/22/05 PREPARED BY: _____ """"-Au~/~A,l ~.Qg~. ~~=_=_=~ __ _ G1JYiE LIKENS DEPARTMENTAPPROVAL: __ ~~~~~ __________ ~~ ______ _ Director of Planning and C mmunity Environment CITY MANAGER APPROV AL: __ --I-=::::....!...Il.d-~~~~_--===--_ CMR:343:05 EMILY HARRISON Assistant City Manager Page 2 of2 \ Cal, June 22, 2005 Gail Likens City of Palo Alto Transportation Planner PO Box 10250 Palo Alto, Ca. 94303 Attachment A RE: EXTENSION OF BAYLANDS/EMBARCADERO SHUTTLE BUS ADMINISTRATION AGREEMENT Dear Ms. Likens: BOARD OF DIRECTORS 2005 MICHAEL D. NEVIN, CHAIR KEN YEAGER, VICE CHAIR MICHAEL T. BURNS JOSE CISNEROS DON GAGE JIM HARTNETT ARTHUR L. LLOYD JOHN McLEMORE SOPHIE MAXWELL MICHAEL J. 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, 2005. This Letter Agreement extends the term of the Agreement for a one year period only from July 1, 2005 through June 30, 2006 ("Extension Period") by mutual consent, as permitted in the Agreement. You will be required to pay the JPB $35,614 during the Extension Period, constituting twenty-five percent (25%) of the $142,453 estimated cost of operating the BaylandslEmbarcadero 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. 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 ofthis Letter Agreement no later than August 30, 2005. 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@samtrans.com, or at (650) 508-6433. Sincerely, Paul Lee Contract Administrator Agreed to and accepted this __ day of ,2005. City of Palo Alto By: Name: ________________________ ___ Its: