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HomeMy WebLinkAbout2004-09-27 City CouncilTO: FROM: City of Palo Alto City Manager’s Report3 HONORABLE CITY COUNCIL CITY MANAGER DEPARTMENT: PLANNING AND COMMUNITY ENVIRONMENT DATE: SUBJECT: SEPTEMBER 27, 2004 CMR:401:04 PALO ALTO SHUTTLE--APPROVAL OF CONTRACT EXTENSION NO. 9 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 Mayor 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, 2005. 2)Approve an increase of $376,000 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, 2004 through June 30, 2005. 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 eight contract extensions since the original agreement was executed. DISCUSSION The ninth amendment to the agreement, in letter format (Attachment A), provides for continued shuttle services for the Palo Alto shuttle program from July 1, 2004 through June 30, 2005. 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, 2004 is estimated CMR:401:04 Page 1 of 2 to be $376,000. In order to cover the full additional contract expense through June 30, 2005, staff is requesting that the Council approve an increase of $376,000 in the contract expenditure limit. This General Fund expense will be reduced by approximately $40,000, the Palo Alto Unified School District’s share of the cost of shuttle extension to Gunn High School, for the fiscal year. RESOURCE IMPACT Funding provided in the 2004-2005 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 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 proj ect would not result in any Significant environmental impact. ATTACHMENTS A. Letter 9 Contract Extension Agreement PREPARED BY:~ GAY~LL IKENS Projects Manager DEPARTMENT APPROVAL: EMSLIE Director of Planning and Community Environment CITY ’,ON Sity Manager CMR:401:04 Page 2 of 2 ATTACHMENT A BOARD OF DIRECTORS 2004 JOHN L McLEMORE, CHAIR MICHAEL D. NEVIN, VICE CHAIR MICHAEL T. BURNS JOSE CISNEROSDON GAGE JIM HARTNETT ARTHUR L. LLOYD SOPHIE MAXWELL KEN YEAGER MICHAEL J, SCANLON EXECUTIVE DIRECTOR June 22,2004 Gail Likens City of Palo Alto Transportation Planner PO Box 10250 Palo Alto, Ca 94303 EXTENSION OF BAY-LANDS/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 March 30, 1998 ("Agreement") terminateson June 30, 2004. This Letter Agreement extends the term of the Agreement for a one year period only from July !, 2004. through June 30, 2005 ("Extension Period") by mutual consent, as permitted in the Agreement. You will be required to pay the JPB $41,534 during the Extension Period, constituting twenty-five percent (25%) of the $166,136 estimated cost of operating the Baylands/Embarcadero Caltrain Shuttle during the Extension Period No payments will be processed until this letter is returned with signature, and ridership, NTD report, invoices, and current insurance proof is supplied to the JPB. PENINSULA CORRIDOR JOINT POWERS BOARD 1250 San Carlos Ave. - P.O. Box 3006 San Carlos, CA 94070-1306 (650)508-6269 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 1, 2004. If there are any questions about what these changes mean to your program contact Richard Cook our shuttle contract administrator at cookr@samtrans.com, Or (650) 508-7979. Sincerely, Richard Cook JPB Staff Agreed to and accepted this __ City of Palo Alto day of By: ,2004. Maine." It s: