HomeMy WebLinkAboutStaff Report 7140
City of Palo Alto (ID # 7140)
City Council Staff Report
Report Type: Consent Calendar Meeting Date: 8/15/2016
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Summary Title: Extend Term with PCJPB for Shuttle Administration
Title: Approval of Amendment Number 2 to the Agreement With the
Peninsula Corridor Joint Powers Board for Rail Shuttle Bus Administration to
Extend the Term for one Year and add $135,100 to Provide Community
Shuttle Service on the Existing Embarcadero Shuttle Route From July 2016
until June 2017
From: City Manager
Lead Department: Planning and Community Environment
Recommendation:
Staff recommends that Council authorize the City Manager to execute the attached
amendment (Amendment 2) to the Rail Shuttle Bus Administration Agreement with the
Peninsula Corridor Joint Powers Board (JPB), extending the term of the agreement through June
30, 2017 and adding $135,100 to the contract to cover the City’s Embarcadero shuttle route
operating costs during the period July 1, 2016 through June 30, 2017.
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 53.5% of the total cost of operating the shuttle. Funds have been budgeted in FY
2017 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
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
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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 three Palo Alto free shuttle routes. The other routes are the
Crosstown route and the East Palo Alto route. In June 2014, the City Council approved a three-
year contract with MV Transportation to provide service for Crosstown and East Palo Alto
routes. The Crosstown route is funded exclusively by City and the East Palo Alto route is funded
by City of East Palo Alto. The East Palo Alto route will be eliminated this month at the request
of the City of East Palo Alto.
Discussion:
The second amendment to the agreement (Attachment A), provides for continued shuttle
services for the Embarcadero route from July 1, 2016 through June 30, 2017. 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, 2016 through June
30, 2017 is estimated to be $252,400. The JPB's maximum contribution during this term of the
Agreement will be $117,300, which is 46.5% 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 53.5% of the total
actual costs of operating the Shuttle Service, which is estimated to be $135,100, subject to a
final adjustment.
Last year, JPB’s financial contribution was 67.5% and City’s financial share was 32.5% of the
total operating costs of the route. In 2015, the Embarcadero route received a subsidy of
$53,000 from the Bay Area Air Quality Management District (BAAQMD). However, 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 requesting that the City increase its contribution.
For fiscal year 2015-2016, estimated ridership on Embarcadero Shuttle is expected to be 63,875
(ridership data for June 2016 is not available yet). Based on this estimation, the City’s cost per
ride is $0.95 and total program’s cost per ride is $3.82.
Policy Implications:
This request is consistent with existing Council direction to continue and expand the Palo Alto
shuttle project.
Resource Impact:
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Staff anticipated an increase in the cost of this shuttle service for Fiscal Year 2017 and budgeted
accordingly. Thus funding of $135,100, which was included in the Fiscal Year 2017 Adopted
Operating Budget for the Palo Alto Free Shuttle is sufficient to cover the service and operating
costs for the Embarcadero route. No additional resources are required. The execution of this
agreement with the JPB will not impact 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 categorically exempt from review pursuant to Section 15301 (Class One, Existing
Facilities) of the State CEQA Guidelines.
Attachments:
Caltrain Joint Powers Board Agreement Amendment No. 2 (PDF)