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HomeMy WebLinkAbout2003-03-03 City Council (10)City of Palo Alto Mar ager’s Repor 5 TO:HONORABLE CITY COUNCIL FROM:CITY MANAGER DEPARTMENT: PLANNING AND .COMMUNITY ENVIRONMENT DATE:MARCH 3, 2003 CMR:175:03 SUBJECT:APPROVAL OF CONTRACT EXTENSION AND INCREASE IN THE EXPENDITURE LIMIT OF THE ILA, IL SHUTTLE BUS SERVICE ADMINISTRATION AGREEMENTWITH THE PENINSULA CORRIDOR JOINT POWERS BOARD FORTHE PALO ALTO SHUTTLE PROJECT RECOMMENDATION Staff recommends that Council: (a)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, 2003. (b) Approve an increase of $124,000 in the expenditure limit of the existing Rail Shuttle Bus Agreement (S0114750) with the JPB to cover the City’s expanded shuttle program operating costs during the period through June 30, 2003. 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’s shuttle bus program. The agreement provides that the agencies may extend the term of the agreement upon mutual consent. There have been six contract extensions since the original agreement was executed. The seventh amendment to the agreement, in letter format (Attachment A), provides for continued shuttle services for the Palo Alto shuttle program from January 1, 2003 through June 30, 2003. DISCUSSION The contract with the JPB stipulates that the City reimburse the JPB for 25 percent of the cost of one of the peak period Embarcadero shuttles and in full 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 six-month period ending June 30, 2003 is estimated to CMR:175:03 Page ! of 2 be $209,000. As of December 31, 2002, the contract with the JPB had an unspent balance of $85,000. In order to cover the full additional contract expense through June 30, 2003, staff is requesting that the Council approve an increase of $124,000 in the contract expenditure limit. This General Fund expense will be reduced by $21,000, the Palo Alto Unified School District’s share of the cost of shuttle extension to Gunn High School, for the six-month period. The City will deduct the District’s costs from the regular remittances for the Lease and Covenant Not to Develop. RESOURCE IMPACT Shuttle program funding provided in the 2002-2003 operating budget 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 in the months ahead. POLICY IMPLICATIONS This request is consistent with existing Council direction to continue and expand the Pato 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. Letter Agreement 7 PREPARED BY:~-% ~ ~ ~C.~ GAYLE LI~NS ortation Pr ,j ec~ts Manager DEPARTMENT APPROVA ~5" STEVE EMSLIE Director of Planning and Community Environment CITY MANAGER APPROVAL: EMILY HARRISON Assistant City Manager CMR:175:03 Page 2 of 2 ATTACHMENT A December 12, 2002 Gait Likens City of Palo Alto Transportation Planner PO Box 10250 Palo Alto, Ca 94303 EXTENSION OF BAYLANDSFEMBARCADERO SHUTTLE BUS ADMINISTRATION AGREEMENT Dear Ms. Likens: The existing Shuttle Bus Administration Agreement bet~veen the City of Palo Alto and the Peninsula Corridor Joint Powers Board ("JPB") dated March 30, 1998 ("Agreement") terminates on December 31, 2002. This Letter Agreement extends the term of the Agreement for a six month period only from January 1, 2003 through June 30, 2003 ("Extension Period") by mutual consent, as permitted in the Agreement. You will be required to pay the JPB $9,476 during the Extension Period, constituting twenty-five percent (25%) of the $37,905 estimated cost of operating the Baylands~mbarcadero Caltrain Shuttle during the Extension Period The JPB will offer employers currently participating in the YPB shuttle bus program an extension of the term of the Agreement for the period from July 1, 2003 through December 31, 2003. However, due to significant budget.ary constraints on the JPB, the JPB’s monetary contribution to employer operated shuttle bus service shall be calculated based on a maximum hourly rate that the JPB pays to the JPB’s contractor for shuttle bus service (i.e. the JPB will not reimburse employer participants a per hour rate that exceeds the amount the JPB pays per hour for J-PB operated shuttle bus services). Emp!oyers may request to participate in the JPB operated shuttle bus program to take advantage of the rates the JPB receives from its contract operator. Any extension of the term of the Agreement beyond June 30, 2003 wil! be done by an amendment to the Agreement to clarify the amount and method of calculating the JPB’s -financial contribution to the employer operated shuttle bus service. 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. The Agreement, when extended, will remain in effect during the Extension Period in all respects except as expressly revised in this letter. PENINSULA CORRIDOR JOINT POWERS BOARD I250 San Carlos Ave.- P.O. Box 3006 San Carlos, CA 94070-1306 (650)508-6269 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 J-PB’s obligation to fund the shuttle during the Extension Period is conditioned upon our receipt of this Letter Agreement no later than December 31, 2002. If there are any questions about what these changes mean to your program contact Richard Cook our shuttle contract administrator at cookr~santrans.com, Or (650) 508-7979. Sincer Richard ?ook JPB Staff Agreed to and accepted this ~ day of City of Palo Alto By: ,2002. Its: PENINSULA CORRIDOR JOINT POWERS BOARD 1250 San Carlos Ave. - P.O. Box 3006 San Carlos, CA 94070-1306 (650)508-6269