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HomeMy WebLinkAbout2000-03-27 City Council (14)City of Palo Alto City Manager’s Report TO:HONORABLE CITY COUNCIL FROM:CITY MANAGER DEPARTMENT: PLANNING AND COMMUNITY ENVIRONMENT DATE: SUBJECT: MARCH 27, 2000 CMR:191:00 SECOND AMENDMENT TO AGREEMENT WITH PENINSULA CORRIDOR JOINT POWERS BOARD FOR RAIL SHUTTLE BUS SERVICE ADMINISTRATION FOR THE PALO ALTO SHUTTLE PROJECT RECOMMENDATION Staff recommends that Council approve the attached Amendment No. 2 to the Rail Shuttle Bus Service Administration agreement service between the City and Peninsula Corridor Joint Powers Board (JPB) to extend the term of the agreement for Caltrain-operated shuttle service through December 31, 2000. BACKGROUND In Spring 1999, the City of Palo Alto and JPB entered into a Rail Shuttle Bus Service Administration Agreement wherein the JPB agreed to provide bus shuttle services for the Baylands commuter shuttle from the from California Avenue Caltrain station to East Bayshore businesses (including the City’s Municipal Service Center and Elwell Court facilities) as part of the JPB’s Caltrain shuttle bus program. The term of the agreement was from April 1999 through December 31, 1999. The JPB assumed 75 percent of the cost of service (with partial funding reimbursed by a grant from the Bay Area Air Quality Management District), with the City responsible for the 25 percent local match. The JPB managed the service contract of the operator, Parking Company of America (PCA), and billed the City for the local match. In December 1999, the City and JPB executed the first Amendment to the agreement to: (1) extend the term of the agreement, (2) provide for the relocation of the Baylands shuttle service to the Palo Alto Caltrain station via Embarcadero Road (Embarcadero Shuttle), and (3) to allow the City to purchase additional hours of shuttle service for the midday and Saturday shuttle service (Crosstown Shuttle). By amending the Caltrain shuttle agreement, the City was able to proceed with an early start up of the shuttle pilot project and to purchase service at a very low contract price available through the Caltrain shuttle program. CMR: 191:00 Page 1 of 3 Since the contract was less than $65,000, it was handled administratively without need of Council action. The contract amendment was executed for a term of three and a half months for the period from December 10, 1999 through March 31, 2000, as staff was actively pursuing discussions with representatives of the Electric Power Research Institute (EPRI) regarding conversion of the shuttle service to a clean-fueled electric shuttle fleet. At that time, staff anticipated that the Conversion could occur by the end of March. However, staff and EPRI are still analyzing the operational and fiscal implications and impacts of the electric shuttle services. Staff will be preparing a full report to Council with a recommended course of action in the next one to two months. DISCUSSION ¯ The first amendment to the Caltrain shuttle agreement expressly provided for the option for the parties to extend the term of the agreement upon mutual consent prior to the March 31 termination date. The attached second amendment will extend the term through which the City can ’ purchase shuttle service from the JPB to December 31, 2000 (the end of the Caltrain shuttle program fiscal year). The City will continue to be billed for services at the very favorable contract rate of $35 per vehicle hour. The total cost of services for the 9- month period is estimated to be $129,000. The amendment further provides that when the City has acquired electric vehicles or other clean-fueled shuttles and is ready to put them in service, the parties will terminate this agreement and enter into a new agreement for the one peak period bus on the Embarcadero Shuttle route funded through the Caltrain program. The new agreement would provide for an employer-operated shuttle pursuant to the conditions imposed by the Bay Area Air Quality Management District, as the City would become the direct operator of the shuttle program. RESOURCE IMPACT The current contract with the JPB for the period from December 10, 1999 to March 31, 2000 is approximately $58,000. The attached contract amendment extending the term to December 31 represents additional cost for the remainder of this calendar year of $129,000. Shuttle program funding included in the 1999/2000 and 2000/2001 operating budgets covers these costs. No additional resources will be required at this time. POLICY IMPLICATIONS This request is consistent with existing Council direction to implement an 18-month pilot shuttle project, and with Transportation Element policies related to improving transit services in Palo Alto in the 1998-2010 Comprehensive Plan, including: Policy T-4, Provide local transit in Palo Alto; Program T-13, Establish a jitney bus system similar to Stanford University’s Marguerite Shuttle. CMR: 191:00 Page 2 of 3 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 Amendment No. 2 to Rail Shuttle Bus Service Administration Agreement PREPARED BY: Gayle Likens, Senior Planner DEPARTMENT HEAD: G. EDWARD GAWF Director of Planning and Community Environment CITY MANAGER APPROVAL: EMILY HARRISON Assistant City Manager Shuttle Advisory Committee Jim DeHart, JPB CMR: 191:00 Page 3 of 3 ATTACHMENT A SECOND AMENDMENT TO RAIL SHUTTLE BUS SERVICE ADMINISTRATION AGREEMENT This SECOND AMENDMENT ("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 Pato Alto, a chartered municipal corporation ("Employer"). RECITALS 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 an amendment ("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 ~oute stops to and from places of employment and to provide for midday service. C. The First Amendment extended the term of the Agreement through March 31, 2000, however, the First Amendment expressly authorizes the parties by mutual agreement to extend the Agreement in three-month increments through December 31, 2000. D. Employer has requested that the term of the Agreement be extended for the maximum period contemplated by the First Amendment, i.e. through December 31, 2000, because the Employer’s anticipated acquisition of electric vehicles has been 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 Second Amendment. AGREEMENT NOW, THEREFORE, in consideration of the foregoing, the parties agree, as follows: 1. Term. The term of the Agreement (Section 3) shall be extended from March 31, 2000 through December 31, 2000. Either party may terminate this Agreement without cause by giving thirty (30) days prior 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 also may be extended to cover additional funding periods by mutual written agreement. 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. 2. Effect. Except as modified by this Second Amendment, the terms and conditions of the Agreement, as modified by the First Amendment, shall remain in full force and effect. -1- 772462.1 IN WITNESS WHEREOF, the parties have 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 By:.By: Name: Michael J. Scanlon Name: Its: Executive Director/CEO Its: Mayor APPROVED AS TO FORM:ATTEST: Attorney for the JPB City Clerk APPROVED AS TO FORM: Senior Assistant City Attorney APPROVED: Assistant City Manager Director of Planning and Community Environment Chief Transportation Officer Director of Administrative Services Risk Manager -2- 772462.1