HomeMy WebLinkAbout2001-10-09 City Council (4)TO:
City of Palo Alto
City Manager’s Report
HONORABLE CITY COUNCIL
FROM:CITY MANAGER DEPARTMENT: PLANNING AND
COMMUNITY ENVIRONMENT
DATE:
SUBJECT:
OCTOBER 9, 2001 CMR:378:01
APPROVAL OF INCREASE IN THE EXPENDITURE LIMIT OF
THE RAIL SHUTTLE BUS SERVICE ADMINISTRATION
AGREEMENT WITH THE PENINSULA CORRIDOR JOINT
POWERS BOARD FOR THE PALO ALTO SHUTTLE PROJECT
RECOMMENDATION
Staff recommends that Council approve an increase of $146,000 in the expenditure limit of
the existing shuttle service contract (Sl14750) with the Peninsula Corridor Joint Powers
Board (JPB) to cover the City’s expanded shuttle program operating costs during the period
of July 1, 2001 through December 31, 2001.
BACKGROUND
In December 2000, the City of Palo Alto and JPB executed a Third Amendment to the Rail
Shuttle Bus Service Administration Agreement to provide shuttle services for the Palo Alto
Shuttle program through June 30, 2001. The Third Amendment provided that the parties
could extend the term again, through December 31,2001, upon mutual agreement.
Staff notified the JPB in writing prior to June 1, 2001 of the City’s wish to exercise the
option to extend the agreement through December 31, 2001 and submitted a cash advance
deposit in the amount of $11,928 as required by the JPB. Subsequently, in mid-June, the
Mayor executed a fourth contract amendment in a letter format provided by the JPB (copy
attached), to formally extend the term of the agreement. However, the full Council must
approve an increase in the expenditure limit for the agreement, since the total value of the
contract exceeds $65,000.
DISCUSSION
The total cost of the full shuttle program for the 6-month period is estimated to be $194,000.
Of this amount, approximately $36,000 is subsidized directly by the JPB. In addition, the
City has already made an advance payment to the JPB of $11,928, leaving a remaining cost
of approximately $146,000 for the period July 1, 2001 through December 2001. Staff is
requesting Council approve an increase in the existing contract encumbrance by this
amount.
CMR:378:01 Page 1 of 2
The City is directly responsible for the contract payment to the JPB, but the City and Palo
Alto Unified School District have agreed to share the cost of the extension of Crosstown
Shuttle services to Gunn High School. The full cost of the Gunn extension for the
September-December period is estimated to be $30,500. The City will deduct the School
District’s half of the costs from the regular remittances for the Lease and Covenant Not to
Develop.
RESOURCE IMPACT
Shuttle program funding provided in the 2001-02 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 4
PREPARED BY:
~A~LE LIKENS
Senior Planner
REVIEWED BY:
JOSEPH KOTT\ r,~.
Chief Transportation Official
CITY MANAGER APPROVAL:
Assistant City Manager
cc: Richard Cook, Joint Powers Board
CMR:378:01 Page 2 of 2
ATTACHMENT A
RECE!VED
Monday, Tune 1 I, 2001
Oail Likens
City of Palo Alto
Transportation Planner
PO Box 10250
Palo Alto, Ca 94303
JUN 1 8 2001
DIVI810N OF
TRANSPORTATION
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 30t~.2001. This
Letter Agreement extends the term of the Agreement for six months from July 1, 2001 to December 31,
2001 ("Extension Period") by mutual consent, as permitted in the Agreement.
You will be required to pay the JPB $11,928.50 during the Extension Period, constituting twenty-five
percent (25%) of the $47,714 estimated cost of operating the Baylands Caltrain Shuttle during t~e
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 Pdchard Cook. The JPB’s obligation to fund the shuttle
during the Extension Period is conditioned upon our receipt of this Letter Agreement.
Cook
Bus Contracts Staff
Agreed to and accepted this z~_ day of,,,,,"~~ , 2001.
CITY OF PALO ALTO By:
Its:
THIRD AMENDMENT TO
RAIL SHUTTLE BUS SERVICE ADMINISTRATION AGREEMENT
This THIRD AMENDMENT ("Third Amendment") to the Rail Shuttle Bus Service
Administration Agreement is entered into this ~ day of......~, 2000, by and between the
Peninsula Corridor Joint Powers Board, a joint powers agency ("JPB"), and the City of Palo Alto, a
chartered municipal corporation ("Employer").
A. On May 3, 1999, the JPB and Employer entered into a Rail Shuttle Bus Service
Administration Agreement ("Agreement") whereby the JPB agreed to provide bus .shuttle services to
Employer as part of the JPB’s Shuttle Bus Program.
B. On December 10, 1999, the JPB and Employer entered into a First Amendment to modify
the Agreement as follows: (1) extend the term of the Agreement, (2) modify the shuttle bus route, and
(3) expand the service to provide for shuttle bus mute stops to and from places of employment and to
provide for midday service.
C. On March 27, 2000, the JPB and employer entered into a Second Amendment to extend
the term of the Agreement through December 31, 2000.
D. Employer has requested that the term of the Agreement be extended through June 30,
2001, with the ability to extend the Agreement by mutual consent through December 31, 2001 because
the Employer’s anticipated acquisition of electric vehicles has been further delayed and Employer is
evaluating other alternatives for converting its proposed shuttle project to clean-fueled vehicles.
E. The JPB is willing to accommodate Employer’s request to extend the term of the
Agreement pursuant to the conditions of this Third Amendment.
AGREEMENT
NOW, THEREFORE, in consideration of the foregoing, the parties agree to amend the
Agreement by deleting Section 2, Employer’s Payment, and Section 3, Term, and inserting the following
sections: ¯
A.Employer’s Payment.
(i) Employer shall pay 25% of the total actual costs of operating the Regular Shuttle Service.
The Employer’s estimated annual 25% payment for operating the Regular Shuttle Service, assuming no
Expanded Service or Midday Service, is $23,857. For the period from January 1, 2001 through June 30,
2001, therefore, employer’s share shall equal $11,928.50, subject to a final adjustment as provided
below. Employer shall pay this amount to the JPB in one lump sum payment concurrent with
Employer’s execution and delivery of this Agreement, but no later than December 31, 2000. If the JPB
and Employer mutually agree to extend the term of this Agreement from July 1, 2001 through December
31, 2001, the Employer shall pay the JPB an additional lump sum payment of$11,928.50 on or before
June 1, 2001. In the event 25% of the actual cost of operating the Shuttle durin~ the term of this
Agreement, or any extension thereof, exceeds Employer’s total payments, upon adequate substantiation
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of such cost overrun, Employer shall pay to JPB the difference within thirty (30) days of JPB’s request
for it. The Bay Area Air Quality Management District ("BAAQMD") is a funding source for the
operation of the Regular Shuttle Service and shall contribute a maximum amount of $23,857 toward the
operation of Regular Shuttle Service for the period from Janua)y 1, 2001 through June 30, 2001. At no
time shall BAAQMD funds be used for any service other than shuttle service during commute hours.
(ii) Employer also shall pay to the JPB all costs and expenses pertaining to the provision of
Expanded Service and Midday Service. The JPB’s current contract with Parking Company of America
("PCA") provides that shuttle service during commute hours shall be Forty-nine Dollars and Twenty-
one Cents ($49.21) per revenue hour and that shuttle service during non-commute hours shall be
provided at the rate of Forty-two Dollars and Twenty-one Cents ($42.21) per revenue hour. After the
commencement of the Expanded Service and Midday Service, PCA shall provide Regular Shuttle
Service, Expanded Service and Midday Service for the Baylands Route at the rate of $42.21 per revenue
hour. Due to the reduction in PCA’s hourly rates for this Shuttle, provided that BAAQMD agrees, the
portion of the $23,857.50 exceeding the cost of the Regular Shuttle Service may be used to fund
Expanded Service that is provided during the commute hours. If the hourly rates for providing the
service are adjusted, these calculations als0 shall be adjusted. The estimated cost of the Expanded
Service and Midday Service for the period from January 1, 2001 through June 30, 2001 is Ninety-seven
Thousand Five Hundred Twenty-nine Dollars andS’Eighty Cents ($97,529.80). If this Agreement is
extended pursuant to Section 3 of this Agreement, the Employer shall continue to pay to the JPB all
costs and expenses pertaining to the provision of Expanded Service and Midday Service. The JPB shall
provide Employer with monthly invoices for the Expanded Service and Midday Service, and Employer
shall pay the amount of the invoice to the J’PB within twenty (20) days of receipt of the invoice.
(iii) " All payments required under this Agreement shall be made by check or money order and
delivered to the following address:
Peninsula Corridor Joint Powers Board
1250 San Carlos Avenue
San Carlos, CA 94070
Attention: Director of Finance
(iv) EmlSloyer shall be solely responsible for collecting any amounts owed by other
employers participating in the Program to be serviced by the Shuttle, if any.
(v) Notwithstanding the foregoing, Employer’s payment obligation under this Agreement
shall not exceed $119,458. Employer shall provide the JPB with written notification at least thirty (30)
days before it anticipates reaching its payment obligation limit of $119,458 and shall inform the JPB
whether it will increase its payment Obligation to cover costs in excess of$119,458. If Employer will
not increase its payment obligation, the JPB may terminate this Agreement, effective on the date
Employer’s payment obligation limit will be reached. Notwithstanding any provision in this Agreement,
the JPB may immediately cease providing all services set forth herein, including Regular Shuttle
Service, Expanded Service, and Midday Service when the Employer’s payment obligation limit is
reached. If Employer notifies the JPB in writing that it will increase its payment obligation, the J-PB will
continue to provide the service described in this Agreement until the increased Employer payment
obligation limit is reached.
30,2001.Term. The term of the Agreement shall be extended from January 1, 2001 through June
Either party may terminate this.Agreement without cause by giving thirty (30) days prior
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832242.3
written notice to the other party. The Employer shall make payments to the JPB in accordance with
Section 2 of this Agreement. The term of this Agreement may be extended to cover additional funding
periods by mutual written agreement. If Employer desires to extend this Agreement from July 1, 2001
through December 31, 2001, Employer shall provide the JPB with written notice; and the payment set
forth in Section A of this Third Amendment, on or before June 1, 2001. JPB shall have fifteen (15) days
to determine whether it desires to extend the term of the Agreement and to provide notice of such
determination to Employer. The parties acknowledge that the Employer is evaluating the acquisition of
electric vehicles in order to provide shuttle bus service in the future. The parties further acknowledge
that when the Employer obtains the electric vehicles, or other clean-fueled vehicles, and they are ready
to be put in service, the parties will terminate this Agreement and negotiate and enter into a new
agreement providing for an employer-operated shuttle pursuant to the conditions imposed by the Bay
Area Air Quality Management District for such agreements.
C. Effect. Except as modified by this Third Amendment, the terms and conditions of the
Agreement, as modified by the First Amendment and Second Amendment, shall remain in full force and
effect. If the JPB does not receive an executed original of this Third Amendment and the payment of
$11,643 on or before December 31, 2000, this Third Amendment will not be effective.
IN WITNESS WHEREOF, the parties hav, e executed this Agreement on the date first written
above with the intent to be legally bound.
PENINSULA CORRIDOR JOINT POWERS
BOARD
CITY OF PALO ALTO
Name: ~lichael J. Scanlon
Its: Executive Director/CEO
APPROVED AS TO FORM:
Name:
It~,’-&Mayor
ATTEST:
~City Attomey
ger
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832242.3 ¯
)ormfion Officer
Director of Adminis~
Risk Manager
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