HomeMy WebLinkAboutStaff Report 7897
City of Palo Alto (ID # 7897)
City Council Staff Report
Report Type: Consent Calendar Meeting Date: 5/15/2017
City of Palo Alto Page 1
Summary Title: Contract Amendment with MV Transportation and Budget
Amendment for Palo Alto Free Shuttle
Title: Approval of Amendment Number One to Contract Number C14152828
with MV Transportation to Extend the Term for two Years for $625,980 to
Operate the Palo Alto Free Shuttle Service on the Existing Crosstown Shuttle
Route Until June 2019 and Approval of a Budget Amendment in the General
Fund
From: City Manager
Lead Department: Planning and Community Environment
Recommendation
Staff recommends that the City Council:
1. Authorize the City Manager or his designee to amend and extend the existing
agreement (C1452828) with MV Transportation by $625,980 for a total contract not-to-
exceed amount of $1,841,017 for the operation of the existing Crosstown Shuttle Route
for up to two (2) additional years; and
2. Amend the Fiscal Year 2017 Budget Appropriation Ordinance in the General Fund by
a. Increasing the Planning and Community Environment Department’s contractual
services appropriation by $94,070; and
b. Decreasing the Non-Departmental Planning and Transportation Contingency by
$94,070.
Background
The Palo Alto Shuttle Program began in December 1999 and provides free shuttle bus services
between the Palo Alto Caltrain station and City destinations and neighborhoods. The program
currently consists of two shuttle routes (Embarcadero and Crosstown) that operate Monday
through Friday, excluding some holidays. This report relates to the Crosstown shuttle service.
The Crosstown Shuttle provides a north-south connection from the Palo Alto Transit Center to
Crescent Park, Midtown, the Charleston Road area, and several community centers, libraries,
senior centers, neighborhoods, and schools in between. The north-south connection is also
supported by the VTA route 21, which follows Middlefield Road from the Palo Alto Transit
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Center to the Mountain View city limits, continuing on to downtown Mountain View. The
Crosstown Shuttle route is funded 100% by the City’s General Fund.
In January 2011, the City Council approved a three-year contract with MV Transportation to
provide service for the Crosstown Shuttle until February 28, 2014, which was later extended
until June 20, 2014. On June 23, 2014, following a Request for Proposals (RFP) competitive
process, City Council approved a new three-year contract with MV Transportation for the
provision of services through June 30, 2017.
The Embarcadero Shuttle, not included in this agreement, connects the business parks on the
east side of the City along Embarcadero Road to the Palo Alto Transit Center. The City currently
contracts with the Peninsula Corridor Joint Powers Board (JPB) for the Embarcadero Shuttle,
which is a part of the Caltrain peak hour commuter shuttle program and is subsidized 46.5% by
the JPB. The remaining 53.5% is funded by the City of Palo Alto General Fund. There will be no
gap in this service and an extension of a contract with MV Transportation will not impact the
contract with JPB.
Discussion
The work to be performed under the extended contract is to provide all equipment, staffing,
and materials necessary to provide shuttle services for up to two additional years through June
30, 2019 to continue to operate the Crosstown Route, while discussions regarding the long-
term future of the Palo Alto Free Shuttle program progress.
Summary of Request for Proposal Process
Through a RFP issued by the City of Palo Alto in 2014, MV Transportation was identified as the
best-suited vendor to provide community shuttle bus services for the Crosstown Shuttle. At
that time, the City entered into a three-year contract with MV Transportation.
Summary of Proposed Services
The estimated total cost of the Crosstown Shuttle for the two-year extension period is $625,980
(Table 1). The proposed contract maintains this existing operation but more frequent service is
being evaluated as part of an ongoing assessment of the shuttle program.
Table 1 - Palo Alto Crosstown Estimated 2-Year Expenditure
Hours of
Operation
Cost for Year
1
Cost for Year
2 Total Contract Cost
Crosstown Shuttle 3,922 $302,976 $323,004 $625,980
Potential Future Service Expansions
The City is looking at opportunities to implement an expanded shuttle program, based on the
Palo Alto Transit Vision (2017) report shared with the City Council on April 24, 2017. The
extended contract with MV Transportation will cover current Crosstown Route operations until
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the Palo Alto Transit Vision Plan can be discussed further and a decision is made on future
service levels.
Timeline
Staff anticipates MV Transportation will provide uninterrupted operation of the Crosstown
Route.
Resource Impact
The cost of the two-year extension of the contract with MV Transportation from July 1, 2017, to
June 30, 2019 is $625,980. The Fiscal Year 2018 Proposed Operating Budget includes the
majority of funding needed for Fiscal Year 2018 Crosstown and Embarcadero shuttle
operations, although this contract amendment will create a funding gap. Staff is requesting
approval of a Budget Amendment to increase the Planning and Community Environment
Department budget by $94,070 from the Fiscal Year 2017 Adopted Planning and Transportation
Contingency to cover the increase in the cost of shuttle operations for Fiscal Year 2018. Once
approved, staff will encumber the funds to the contract.
Policy Implications
This request is consistent with Council direction to continue the existing Palo Alto Free Shuttle
routes. Additional potential service expansions will be brought to Council for discussion and
direction later this year.
The following Goals, Policies and Programs from the Comprehensive Plan are directly related to
this discussion:
• Goal T-1: Less Reliance on Single-Occupant Vehicles
• Policy T-3: Support the development and expansion of comprehensive, effective
programs to reduce auto use at both local and regional levels.
• Goal T-2: A Convenient, Efficient, Public Transit System that Provides a Viable
Alternative to Driving
• Policy T-4: Provide local transit in Palo Alto.
• Policy T-5: Support continued development and improvement of the University Avenue
and California Avenue Multi-modal Transit Stations, and the San Antonio Road
Station as important transportation nodes for the City.
• Policy T-6: Improve public transit access to regional destinations, including those within
Palo Alto.
• Policy T-9: Work towards integrating public school commuting into the local transit
system.
• Policy T-11: Support efforts to integrate train, bus, and shuttle schedules at multi-modal
transit stations to make public transit use more time-efficient.
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. The current contract continues the
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existing shuttle service provided by the City of Palo Alto (Crosstown Service) and the proposed
amendment would merely extend the term of the service.
Attachments:
Attachment A: C14152828 Shuttle Extension Contract Amendment No 1
1 Revision July 20, 2016
AMENDMENT NO. 1 TO CONTRACT NO. C14152828
BETWEEN THE CITY OF PALO ALTO AND
MV TRANSPORTATION, INC.
This Amendment No. 1 to Contract No. C14152828 (“Contract”) is entered into July
31, 2017, by and between the CITY OF PALO ALTO, a California chartered municipal corporation
(“CITY”), and MV TRANSPORTATION, INC. a California corporation, located at 5910 N. Central
Expressway., Suite 1145, Dallas TX., 75206, Telephone (972) 391-4600 (“CONTRACTOR”).
R E C I T A L S
A. The Contract was entered into between the parties for the provision of the
operation of shuttle buses for CITY on the Crosstown route (including the Special School Commute
Service) in accordance with the schedules and routing determined by CITY.
B. CITY intends to extend the TERM to June 30, 2019 and increase the
compensation by $625,980.00 from $1,215,037.00 to $1,841,017.00 for the continuation of
services as stated in EXHIBIT “A” SCOPE OF SERVICES.
C. The parties wish to amend the Contract.
NOW, THEREFORE, in consideration of the covenants, terms, conditions, and
provisions of this Amendment, the parties agree:
SECTION 1. Section 3. TERM is hereby amended to read as follows:
“TERM.
The term of this Agreement is from July 1, 2014 to June 30, 2019 inclusive, subject to the
provisions of Sections Q and V of the General Terms and Conditions.”
SECTION 2. Section 5. COMPENSATION FOR ORIGINAL TERM is hereby amended to
read as follows:
“COMPENSATION FOR ORIGINAL TERM. CITY shall pay and CONTRACTOR agrees to accept as not
to exceed compensation for the full performance of the Services and reimbursable expenses, if
any:
A sum calculated in accordance with the fee schedule set forth in Exhibit C, not to exceed a total
maximum compensation amount of One Million Eight Hundred Forty One Thousand Seventeen
dollars ($1,841,017.00).
CONTRACTOR agrees that it can perform the Services for an amount not to exceed the total
maximum compensation set forth above. Any hours worked or services performed by
DocuSign Envelope ID: F4BA533A-991D-43E8-A035-FC9770DCEE7A
2 Revision July 20, 2016
CONTRACTOR for which payment would result in a total exceeding the maximum amount of
compensation set forth above for performance of the Services shall be at no cost to CITY.”
SECTION 3. The following exhibit(s) to the Contract is/are hereby amended to read
as set forth in the attachment(s) to this Amendment, which are incorporated in full by this refer-
ence:
a. Exhibit “C” entitled “COMPENSATION”.
SECTION 4. Except as herein modified, all other provisions of the Contract, including
any exhibits and subsequent amendments thereto, shall remain in full force and effect.
IN WITNESS WHEREOF, the parties hereto have by their duly authorized representatives
executed this Agreement on the date first above written.
CITY OF PALO ALTO
APPROVED AS TO FORM:
MV TRANSPORTATION, INC.
Attachments:
EXHIBIT "C": COMPENSATION
DocuSign Envelope ID: F4BA533A-991D-43E8-A035-FC9770DCEE7A
Robert A. Pagorek
. CFO
3 Revision July 20, 2016
EXHIBIT C
SCHEDULE OF FEES
CITY shall pay CONTRACTOR according to the following rate schedule. The maximum amount of compensation to be
paid to Contractor, including both payment for services and reimbursable expenses, shall not exceed One Million Eight
Hundred Forty One Thousand Seventeen dollars ($1,841,017.00). Any services provided or hours worked for which
payment would result in a total exceeding the maximum amount of compensation set forth herein shall be at no cost to
City.
Crosstown Shuttle
Year Service Rate Est. Hours of Operation Est. Annual Cost
1 61.571 2,893 $178,123.82
2 62.620 2,893 $181,158.88
3 64.374 2,893 $186,234.30
Est. Total Cost: $545,517.00
East Palo Alto Shuttle
Year Service Rate Est. Hours of Operation Est. Annual Cost
1 69.137 3,200 $221,238.18
2 68.432 3,200 $218,982.12
3 71.656 3,200 $229,298.70
Est. Total Cost: $669,519.00
CONTRACT TOTAL NOT TO EXCEED $1,215,036.00
AMENDMENT NO. 1
Crosstown and Mid-Town Shuttle
YEAR SERVICE RATE EST. HOURS OF
OPERATION EST. ANNUAL COST
Year 4 (07/01/17 – 12/31/17) $75.996 1,961 $149,028
Year 4 (01/01/18 – 06/30/18) $78.505 1,961 $153,948
AVERAGE RATE FOR YEAR 4 $77.251 3,922 $302,976
Total for year 4 $302,976
Year 5 (07/01/18 – 06/30/19) $82.357 3,922 $323,004
DocuSign Envelope ID: F4BA533A-991D-43E8-A035-FC9770DCEE7A
4 Revision July 20, 2016
Total for year 5 $323,004
Total for years 4 & 5 $625,980
Total contract amount Not to Exceed: $1,841,017.00
DocuSign Envelope ID: F4BA533A-991D-43E8-A035-FC9770DCEE7A