HomeMy WebLinkAboutStaff Report 8322
City of Palo Alto (ID # 8322)
City Council Staff Report
Report Type: Consent Calendar Meeting Date: 8/14/2017
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Summary Title: Extend Term with PCJPB for Shuttle Administration
Title: Approval of Amendment Number 3 to the Agreement With the
Peninsula Corridor Joint Powers Board for Rail Shuttle Bus Administration to
Extend the Term of the Agreement for one Year and to Provide an additional
$128,200 for Community Shuttle Service on the Existing Embarcadero Shuttle
Route From July 2017 Until June 2018
From: City Manager
Lead Department: Planning and Community Environment
Recommendation
Staff recommends that the City Council authorize the City Manager to execute the attached
amendment (Amendment 3) to the Rail Shuttle Bus Administration Agreement with the
Peninsula Corridor Joint Powers Board (JPB), extending the term of the agreement through June
30, 2018 and adding $128,200 to cover the City’s Embarcadero shuttle route operating costs
during the period July 1, 2017 through June 30, 2018.
Executive Summary
The City and the JPB have an agreement under which the JPB provides the Embarcadero shuttle
service, which is partially funded by the JPB and partially funded by the City. The proposed
amendment to the agreement provides for continued service in the current fiscal year, with the
City paying 56% of the total cost of operating the shuttle. Funds have been budgeted in Fiscal
Year (FY) 2018 for this purpose.
Background
In 1999, the City and JPB entered into the Rail Shuttle Bus Service Administration agreement for
the provision of shuttle services in Palo Alto, as part of the JPB rail shuttle bus program. In
2014, JPB staff updated and standardized the original Rail Shuttle Bus Service Administration
Agreement from 1999 and a new base agreement was executed on August 18, 2014. The
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agreement provides that the agencies may extend the term of the agreement upon mutual
consent.
The JPB agreement contains terms and conditions for the Embarcadero route, which is part of
the rail shuttle program and subsidized by the JPB. While the Embarcadero route is considered
part of the Palo Alto free shuttle program and is partially funded by the City, the service is
provided by an operator under contract to the JPB, and the JPB funds a portion of the service.
The Embarcadero route is one of two Palo Alto free shuttle routes. The other route is the
Crosstown Route operated by MV Transportation. In May 2017, the City Council approved a
two year contract extension with MV Transportation to provide service for Crosstown route.
The Crosstown route is funded exclusively by City.
Discussion
The third amendment to the agreement (Attachment A), provides for continued shuttle services
for the Embarcadero route from July 1, 2017 through June 30, 2018. Staff was not able to
agendize this item for Council approval prior to the end of the fiscal year; however, JPB has
continued to provide uninterrupted shuttle service on the Embarcadero route during the
interim until the contract extension is approved by the City.
The cost of operating the Embarcadero route for twelve months from July 1, 2017 through June
30, 2018 is estimated to be $228,800. The JPB's maximum contribution during this term of the
Agreement will be $100,600, which is 44% of the estimated total operating costs for the route,
as determined by the JPB.
The agreement with the JPB stipulates that the City will reimburse the JPB for 56% of the total
actual costs of operating the Shuttle Service, which is estimated to be $128,200, subject to a
final adjustment.
Last year, JPB’s financial contribution was 46.5% and City’s financial share was 53.5% of the
total operating costs of the route. However, in 2015, the Embarcadero route received a subsidy
of $53,000 from the Bay Area Air Quality Management District (BAAQMD) thus the City only
was required to contribute 32.5% of the funding. In 2016, the Embarcadero route did not
qualify for this grant funding. This is primarily the result of emission reduction projections
generated from rider survey travel information. With no other grant opportunities available,
JPB is requested that the City increase its contribution.
For July 2016- March 2017, estimated ridership on Embarcadero Shuttle is 38,699. In this
timeframe the cost per ride was $4.71.
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Approval of this contract amendment would continue the operation of the Embarcadero
Shuttle Route for the remainder of Fiscal Year 2018.
Policy Implications
This request is consistent with prior Council direction to continue and expand the Palo Alto
shuttle and with policies in the Comprehensive Plan regarding reducing congestion and
increasing the use of alternatives to the private automobile.
Resource Impact
Staff anticipated an increase in the cost of this shuttle service for Fiscal Year 2018 and budgeted
accordingly. There is sufficient Shuttle Budget in the Fiscal Year 2018 Adopted Operating
Budget to cover this expense and the current costs of the Crosstown Shuttle. No additional
resources are required. The execution of this agreement with the JPB has no impact on the
contract with MV Transportation.
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. Funding continuation of an existing
service is also categorically exempt from review pursuant to Section 15301 (Class One, Existing
Facilities) of the State CEQA Guidelines.
Attachments:
Attachment A - Caltrain Joint Powers Board Agreement Amendment No 3 (PDF)