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HomeMy WebLinkAbout2000-12-18 City Council (26)TO: FROM: City of Palo Alto City Manager’s Report HONORABLE CITY COUNCIL CITY MANAGER DEPARTMENT: PLANNING AND COMMUNITY ENVIRONMENT DATE:DECEMBER 18, 2000 CMR:454:00 SUBJECT:APPROVAL OF THIRD AMENDMENT NUMBER 3 TO THE AGREEMENT WITH THE 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. 3 to the Rail Shuttle Bus Service Administration agreement between the City and the Peninsula Corridor Joint Powers Board (JPB) to extend the term of the agreement for Caltrain-operated shuttle service through June 30, 2001, with a revision limiting the contingency payment to a maximum of $10,000. BACKGROUND In Spring 1999, the City of Palo Alto and JPB entered into a Rail Shuttle Bus Service Administration Agreement to provide the Baylands commuter shuttle service to the Embarcadero/East Bayshore businesses as part of the Caltrain shuttle bus program. The agreement has been amended twice to: (1) extend the term of the agreement, (2) provide for the relocation of the Baylands shuttle service from the California Avenue Caltrain station 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). The current term of the agreement is through December 31, 2000. By amending the Caltrain shuttle agreement, the City was able to proceed with an early start up of the shuttle pilot project and purchase service at a very low contract price available through the Caltrain shuttle program. DISCUSSION The shuttle administration agreement expressly provides an option for the parties to extend the term of the agreement upon mutual written agreement. The proposed third amendment extends the term through June 30, 2001 (the end of the City’s fiscal year) and provides, the opportunity for subsequent extensions should the City continue the shuttle program into CMR:454:00 Page 1 of 3 2001-02. The City will be billed for services at the very favorable contract rate of $42.21 per vehicle hour. .. The 18-month pilot shuttle project is scheduled to conclude at the end of this fiscal year. Within the next two to three months, staff will provide a full evaluation report to Council on the shuttle project and recormnendations regarding the furore of the project and funding beyond June 30. Staff is stil! investigating the potential for conversion of the shuttle program to clean electric or compressednatural gas buses. Staff continues to work with the Electric Power Research Institute to analyze and evaluate the operational and fiscal implications and impacts of electric shuttle service. This subject will be addressed in the upcoming shuttle evaluation report. Should the City acquire electric vehicles or other clean-fueled shuttles and become 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 December 31, 2000 is approximately $187,000. The attached contract amendment extending the term to June 30, 2001 represents an estimated additional cost of $109,458 for the remainder of this fiscal year. Shuttle program fimding included in the 2000-01 operating budget will cover these costs. Prior to execution, the contract will be revised to cap the contingency payments at $10,000. 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; and Program T-13, Establish a jitney bus system similar to Stanford University’s Marguerite Shuttle. 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. CMR:454:00 Page 2 of 3 ATTACHMENTS Amendment No. 3 to Rail Slmttle Bus Service Administration Agreemem PREPARED BY: Gayle Likens, Senior Plamler DEPARTMENT HEAD: G. EDWARD GA~VF Director of Planning and Commtmity Enviromnent CITY MANAGER APPROVAL: Assistant City Manager CC:Shuttle Advisory Committee Jim DeHart, JPB CM_R:454:00 Page 3 of 3 ATTACHMENT A THIRD AMENDMENT TO RAIL SHUTTLE BUS SERVICE ADMINISTRATION AGREEMENT This THIRD AMENDMENT ("Third Amendment") to the Rail Shuttle Bus Selvice Administration Agreement is entered into this day of ,20170, by and between the Peninsula Con’idor Joint Powers Board, a joint powers agency ("J-PB"), and the City of Palo Alto, a chartered municipal corporation ("Employer"). RECITALS A. On May 3, 1999, the JPB and Employer entered into a Rail Shuttle Bus Se~arice Administration Agreement ("Agreement") whereby the JPB agreed to provide bus shuttle services to Employer as pa~ 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 telrn of the Agreement, (2) modify the shuttle bus route, and (3) expand the sercice to provide for shuttle bus route stops to and fi’om places of emplo~gment and to provide for midday seaarice. C. On March 27, 2000, the JPB and employer entered into a Second Amendment to extend the te~rn of the Agreement through December 31, 2000. D. Employer has requested that the telan 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 convelOdng 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 palsies agree to amend the Agreement by deleting Section 2, Employer’s Payment, and Section 3, Term, and inset°ring the following sections: A. Employer’s Payment. 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 Selwice, assuming no Expanded Service or Midday Service, is $23,857. For the period from Janum3~ 1, 2001 through June 30, 2001, therefore, employer’s shm’e 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 concun’ent with Employer’s execution and delivel~j of this Agreement, but no later than December 31, 2000. If the J-PB and Employer mutually agree to extend the telan of this AgTeement from July 1, 2001 through December 31, 2001, the E.rnployer shall pay the JPB an additional lump sum payment of $11,928.50 on o1" before June 1,2001. In the event 25% of the actual cost of operating the Shuttle during the term of this Agreement, o1" any extension thereof, exceeds Employer’s total payments, upon adequate substantiation of such cost oven’un, Employer shall pay to JPB the difference within thi~3’ (30) days of JPB’s request for it. The Bay Area Air Quality Management District ("BAAQMD") -1- 832242.2 is a funding source for the operation of the Regular Shuttle Selwice and shall contrib{t{e a maximum amount of $23,857 toward the operation of Regular Shuttle Service for the period fi’om January 1,2001 through December 31,2001. At no time shall BAAQMD funds be used for any service other than shuttle selwice during commute hours. Employer also shall pay to the JPB all costs and expenses pel*aining to the provision of Expanded Service and Midday Smwice. The JPB’s cun’ent contract with Parking Company of America ("PCA") provides that shuttle selwice 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 ($42.21) per re’cenue hour. After the commencement of the Expanded Selwice and Midday Service, PCA shall provide Regular Shuttle Selwice, Expanded Selarice and Midday Selwice for the Baylands Route at the rate of $42.21 per revenue hour. Due to the reduction in PCA’s hom’ly rates for this Shuttle, provided that BAAQMD agrees, the portion of the $23,857.50 exceeding the cost of the Regular Shuttle Selwice may be used to fund Expanded Service that is provided during the commute hours. If the hourly rates for providing the selwice are adjusted, these calculations also shall be adjusted. The estimated cost of the Expanded Service and Midday Selwice for the period fi’om JanuaI3, 1, 2001 through June 30, 2001 is $97,529.50. 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 Selwice. The JPB shall provide Employer with monthly invoices for the Expanded Selwice and Midday Service, and Employer shall pay the amount of the invoice to the JPB within twenty (20) days of receipt of the invoice. All payments required under this Agreement shall be made by check or money order and delivered to the following address: Peninsula Con’idor Joint Powers Board 1250 San Carlos Avenue San Cm’los, CA 94070 Attention: Director of Finance Employer shall be solely responsible for collecting any amounts owed by other employers pm’ticipating in the Program to be serviced by the Shuttle, if any. B. Term. The term of the Agreement shall be extended from Januat3, 1,2001 through June 30, 2001. Either party may tel~ninate this Agreement without cause by giving thirty (30) days prior written notice to the other pm’ty. 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 vcritten 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 tm~n of the Agreement and to provide notice of such deterrnination 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 m’e ready to be put in selwice, the parties will’telrninate 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- 832242.2 C. Effect. Except as modified by this Third Amendment, the ten,ns and conditions of th "~ Agreement, as modified by the First Amendmen~ 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 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 -3- 832242.2