HomeMy WebLinkAboutStaff Report 7170
City of Palo Alto (ID # 7170)
City Council Staff Report
Report Type: Consent Calendar Meeting Date: 9/26/2016
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Summary Title: Termination of East Palo Alto funding agreement for shuttle
Title: Approval of the Termination of a Funding Agreement With the City of
East Palo Alto for the East Palo Alto Shuttle Route at the Request of the City
of East Palo Alto, Approve an Exemption Under Section 15301 of the
California Environmental Quality Act Guidelines and Approval of a Budget
Amendment to the General Fund
From: City Manager
Lead Department: Planning and Community Environment
Recommendation
Staff recommends that Council authorize the City Manager or his designee to terminate the
funding agreement with the City of East Palo Alto for the operation of the East Palo Alto shuttle
route at the request of the City of East Palo Alto, approve an exemption under 15301 of the
California Environmental Quality Act, and amend the Fiscal year 2017 Budget Appropriation for
the General Fund in the Planning and Community Environment Department by:
a. Decreasing the revenue estimate for East Palo Alto shuttle route operations by
$161,400; and
b. Decreasing the expenditure appropriation for East Palo Alto shuttle route operations by
$161,400.
Executive Summary
The City and the City of East Palo Alto have an agreement that was executed in July 2014, under
which East Palo Alto agreed to provide $669,519 for the operation of the East Palo Alto Shuttle
Route until June 2017. On July 21, 2016, staff received a request from City of East Palo Alto to
terminate the funding agreement between the two cities and terminate the operation of East
Palo Alto shuttle route (attachment A). Apparently, the City of East Palo Alto will be served by a
new Samtrans bus route effective in September, and they would like to reprogram funds that
were supporting the shuttle service.
Background & Discussion
In January 2014, the City of East Palo Alto approached the City requesting a partnership to
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introduce a shuttle route to connect the Woodland Avenue neighborhood in East Palo Alto with
Downtown Palo Alto. Staff from the City of East Palo Alto developed the East Palo Alto shuttle
route. As the City was preparing a Request for Proposal (RFP) for operations of the Crosstown
shuttle route, East Palo Alto staff requested the inclusion of operations for this new East Palo
Alto shuttle route. In June 2014, the City Council approved a three-year contract with MV
Transportation to operate the Crosstown and the East Palo Alto routes until June 30, 2017 and
also approved a funding agreement with the City of East Palo Alto. Under the terms of the
agreement, the City of East Palo Alto pays 100 percent of the East Palo Alto operational cost
until June 30, 2017.
The funding agreement between the two cities has a term of three years and is set to expire in
June 2017. However, this Agreement can be terminated by mutual written consent and terms
acceptable to both cities. City of East Palo Alto requested termination of the agreement and has
accepted the terms of the termination as shown in Attachment B.
The East Palo Alto route is operated by MV Transportation and managed by the City. The City
has provided a notice to MV Transportation that it wishes to terminate the operations of the
East Palo Alto route beginning on September 30, 2016. The City’s contract with MV
Transportation allows the City to increase, reduce or modify shuttle services as the City may
find necessary. An amendment to the contract is not required to terminate routes, but the City
must provide a 30-day written notice. Termination of this route will not affect the Crosstown
and Embarcadero routes.
Timeline
The last day of operation for East Palo Alto route will be September 30, 2016. Samtrans route
280 will incorporate the area currently served by the East Palo Alto route beginning September
8, 2016.
Resource Impact
The Planning and Community Environment Department Fiscal Year 2017 Adopted Operating
Budget includes $645,772 for the Palo Alto Free Shuttle Program which provides sufficient
funding to continue services for the Crosstown and Embarcadero routes until June 30, 2017 and
the East Palo Alto route until September 30, 2016. With the termination of the agreement
between the City of Palo Alto and the City of East Palo Alto, there will be a decrease in revenue
from City of East Palo Alto in the amount of $161,400. Staff is requesting approval of a budget
amendment to recognize a $161,400 decrease in revenue from the City of East Palo Alto and a
corresponding decrease to transportation contracts in the Planning and Community
Environment Department’s Fiscal Year 2017 Operating Budget.
Policy Implications
While the cancellation of this route is not consistent with the Comprehensuive Plan polices and
programs listed below, this is a temporary setback necessitated by the withdrawal of funds by
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East Palo Alto. The City will conitinue to work to expand the Palo Alto Free Shuttle system and
finalize the expansion study that is currently underway.
Policy T-4: Provide local transit in Palo Alto.
Program T13: Establish a jitney bus system similar to Stanford University’s Marguerite
Shuttle.
Program T-37: Provide safe, convenient pedestrian, bicycle, and shuttle connections
between the Stanford Shopping Center and Medical Center areas and future housing
along the Sand Hill Road corridor, the University Avenue Multi-modal Tran-sit Station,
Downtown Palo Alto, and other primary destinations.
Environmental Review
This termination is exempt from environmental review under 15301(operation of existing
facility) of the California Environmental Quality Act Guidelines.
Attachments:
Attachment A: Notice of Service Cancellation for EPA Shuttle route (PDF)
Attachment B: Agreement to terminate EPA shuttle route and funding agreement
(PDF)