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HomeMy WebLinkAbout2002-10-07 City Council (3)TO: City of Palo Alto C°ty Manager’s Rep rt HONORABLE CITY COUNCIL FROM:CITY MANAGER DEPARTMENT: PLANNING AND COMMUNITY ENVIRONMENT DATE: SUBJECT: October 7, 2002 CMR:404:02 APPROVAL OF CONTRACT EXTENSION AND INCREASE IN THE EXPENDITURE LIMIT OF THE RAIL SHUTTLE BUS SERVICE ADMINISTRATION AGREEMENT WITH THE PENINSULA CORRIDO.R JOINT :POWERS BOARD FOR THE PALO ALTO SHUTTLE PROJECT RECOMMENDATION Staff reconamends 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 December 31, 2002. (b) Approve an increase of $206,500 in the expenditure limit of the existing Rail Shuttle Bus agreement (Sl14750) with the JPB to cover the City’s expanded shuttle program operating costs during the period through December 31, 2002. BACKGROUND The Rail Shuttle Bus Service Administration Agreement between the City and JPB provides that the agencies may extend the term of the agreement upon mutual agreement. Since the original agreement was executed in 1999, there have been five contract extensions. The sixth Amendment to the Agreement, in letter format (Attachment A), provides for continued shuttle services for the Palo Alto shuttle program from July 1, 2002 through December 31, 2002. For the last two contract amendments, staff determined that the Mayor was authorized to execute the amendments without Council action. After the Mayor executed the amendments, staff requested that Council approve the related increased contract expenditure limits. In reviewing this sixth amendment, the City Attorney determined that the full Council should take action on both the amendment and the increase in the contract expenditure limit. This resulted in a delay until now in bringing this matter forward to the Council. CMR:404:02 Page 1 of 2 DISCUSSION The total cost of the shuttle contract expense for the six-month period ending December 31, 2002 is estimated to be $244,000. Of this amount, approximately $37,500 is subsidized directly by the JPB, leaving a remaining contract cost of approximately $206,500. Staff is requesting that Council approve an increase in the existing contract encumbrance by this amount. This General Fund expense will be reduced by $36,000: Palo Alto Unified School District (PAUSD) has agreed to fund its share of the Gunn extension for the July-December period, approximately $!8,000. The city will deduct PAUSD’s costs from the regular remittances for the Lease and Covenant Not to Develop. Further, approximately $18,000 of th~ contract expense will be paid from the Parldng Structures CIP budget to offset the cost of the Downtown Shuttle, for the period from July-September. A separate contract has been executed with the shuttle operator, Parking Company of America, for the October- December periodi 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. 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 project would not result in any significant environmental impact. ATTACHMENTS A. Letter Agreement 6 PREPARED BY: LIKENS Projects Manager DEPARTMENT APPROVAL: CITY MANAGER APPROVAL: STEVE EMSLIE Director of Planning and Community Environment ~-~MIL~-~HARRISON Assistant City Manager CMR:404:02 Page 2 of 2 Pe.i.sUla Corrido~ Jo|.t Powers Board 1250 San Carlos Avenue PO Box 3006 San Carlos, CA 94070-1306 ATTACHMENT A tel 650.508.6269 fax 650.508.6365 Monday, July 01, 2002 Gail Likens City of Palo Alto Transportation Planner PO Box 10250 Palo Alto, Ca 94303 RE: EXTENSION OF BAYLANDS SHUTTLE BUS ADMINISTRATION AGREEMENT Dear Ms. Likens: The existing Shuttle Bus Administration Agreement between City of Palo Alto and the Peninsula Corridor Joint Powers Board ("JPB") dated 30 th. Dec. 2001 ("Agreement") terminates on Jun 30th.2002. This Letter Agreement extends the term of the Agreement for six months from July 1, 2002 to December 31, 2002 ("Extension Period") by mutual consent, as permitted in the Agreement. You will be required to pay the JPB $12,500 during the Extension Period, constituting twenty-five percent (25%) of the $50,000 estimated cost of operating the Baylands Caltrain Shuttle during the Extension Period. 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 Richard Cook. The JPB’s obligation to fund the shuttle during the Extension Period is conditioned upon our receipt of this Letter Agreement. Since;y,~i,,’~,, Richard Cook Bus Contracts Staff Agreed tO and accepted this __ CITY OF PALO ALTO day of ,2002. By: Its: