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HomeMy WebLinkAboutStaff Report 2408-3387CITY OF PALO ALTO CITY COUNCIL Special Meeting Monday, October 28, 2024 Council Chambers & Hybrid 5:30 PM     Agenda Item     10.Approval of Amendment No. 2 to Contract Number C23184827 with Nomad Transit, LLC (Via) in the Amount of $1,200,000 for a total not to exceed $3,801,500 to Continue the City of Palo Alto On-Demand Transit Service through June 2025; Approve a Cost Sharing Agreement with Stanford Research Park to Partially Fund the Service up to $600,000; and Adopt an Ordinance Amending the FY 2025 Municipal Fee Schedule to Increase Fares; CEQA status – not a project. Consent Questions City Council Staff Report From: City Manager Report Type: CONSENT CALENDAR Lead Department: Transportation Meeting Date: October 21, 2024 Report #:2408-3387 TITLE Approval of Amendment No. 2 to Contract Number C23184827 with Nomad Transit, LLC (Via) in the Amount of $1,200,000 for a total not to exceed $3,801,500 to Continue the City of Palo Alto On-Demand Transit Service through June 2025; Approve a Cost Sharing Agreement with Stanford Research Park to Partially Fund the Service up to $600,000; and Adopt an Ordinance Amending the FY 2025 Municipal Fee Schedule to Increase Fares; CEQA status – not a project. RECOMMENDATION Staff recommends that the Council approve and authorize the City Manager or their designee to: 1. Execute Contract Amendment No. 2 with Nomad Transit, LLC (Via), to provide Palo Alto Link Services, extending the contract term to June 30, 2025, with additional funding of $1.2 million for a revised not to exceed total of $3,801,550 (Attachment A); and 2. Execute the attached Cost Sharing Agreement to Receive Funding from Stanford University to Fund Palo Alto Link Services to Stanford Research Park up to $600,000 annually (Attachment B); and 3. Adoption of an Ordinance to Amend the Fiscal Year 2025 Municipal Fee Schedule (Attachment C) by eliminating discounted fares, increasing fares for Palo Alto Link for single rides for all user types to $0-4, increasing monthly passes to $130, and increasing weekly passes to $40. EXECUTIVE SUMMARY The recommended actions continue Palo Alto Link (PAL) services through June 2025, in line with Council action recommending a baseline of funding for on-demand transit services and a standardized fare for all user types. BACKGROUND Palo Alto Link provides on-demand transit service Monday—Friday for a 12-hour service span 7:00 am-7:00 pm. The service operates within most of the City, with exceptions only to the east and west ends that house large open spaces and conservation lands. PAL is utilizing a ten (10) vehicle fleet to provide virtually positioned pick-up and drop-off locations within an acceptable walking distance with the help of a web application. Door-to-door service is available for riders who may require extra assistance. The service addresses first-/last-mile challenges in Palo Alto and provides a convenient and affordable transportation option for residents, employees, and vulnerable/transit-dependent populations. Finding and securing funding partners such as SRP is an integral strategy to establishing a long-term path forward for funding PAL transit services. The City Council approved the contract for this service in December 2022 and further discussed service levels and funding in April 2023 and as part of the FY 2025 budget process in May 2024. On December 12, 2022, the Council approved a contract with Nomad Transit LLC (Via) to provide on-demand transit services in the amount of $2,043,000 for up to two years, which the City conducted a formal solicitation for and was primarily funded through the 2016 Measure B Innovative Transit Grant ($2,000,000)1. On April 10, 2023, the Council approved contract Amendment No. 1 with Nomad Transit (increasing the NTE to $2,601,500 while keeping contract expiration date of December 31, 2024) in conjunction with approving a cost-sharing agreement with Stanford Research Park (SRP) to increase the service area of PAL to also serve the SRP, and have the SRP contribute (up to $372,000 annually) to the City to cover the increased cost of providing an expanded service area2. ANALYSIS A study session was held with the City Council in FY 2024 to discuss the service levels of this program to discuss the future of the program in light of the sunset of the Innovative Transit Grant. This discussion reviewed the funding necessary to support different levels of services in preparation for the FY 2025 budget process. During the FY 2025 budget process, the Finance Committee and City Council adopted a revised level of service and funding plan including changes to ride fares, partnerships with other agencies, and grant funding to lower the net financial impact on the City’s General Fund. The FY 2025 Adopted Budget reflected gross program expenses of $1.2 million, shy of the $1.9 million to maintain FY 2024 services levels. Staff recommends approval of contract amendment #2 with Nomad Transit which reflects revised program costs to $1.5M for FY 2025; this included $0.3M in carryover funding from FY 2024 and a recommended total contract increase of $1.2M. Amendment #2 to the Nomad Transit contract will continue PAL on-demand transit operations until the end of FY 2025. This contract recommends a service level that maintains Palo Alto Link on-demand transit service Monday—Friday for a 12-hour service span 7:00 am-7:00 pm, however, will result in an estimated 3-5 minutes or longer pick-up time; an estimated 20% to 25% increase in wait times for a ride pick-up. 1 CMR #14959, https://recordsportal.paloalto.gov/Weblink/DocView.aspx?id=82138 2 CMR #2303-1128, https://recordsportal.paloalto.gov/Weblink/DocView.aspx?id=82332 FY 2025 services funded by this contract amendment align with the FY 2025 Adopted Budget and reflect the following sources of funding and recommended additional actions in this report: •Transportation for Clean Grant (TFCA) of $441,000, administered by the Metropolitan Transportation Commission (MTC) and Valley Transportation Authority (VTA for electrifying its accessible van fleet and for continued operations of the PAL Service. •Recommended approval of cost-sharing agreement with Stanford Research Park (SRP) with a new cost basis methodology using a usage-based model. SRP will pay a pro-rata amount based upon the total monthly cost of the service and the percentage of trips to and from the SRP up to an annual maximum of $600,000. This reflects a significant change from the current funding of $372,000 annually. Upon Council action, the new agreement (Attachment B) will be in effect from September 1, 2024, to August 31, 2025. •Recommended amending the FY 2025 Municipal Fee Schedule for 'On-Demand Transit Fares’ increasing the fare for one-way fares from $0-$3.50 to $0-$4.00, increasing the Monthly Pass from $65 to $130, increasing Weekly Passes from $20 to $40, and eliminating discounted fares. This fare increase was discussed as part of the necessary funding strategies during the FY 2025 budget process and the recommended changes to the FY 2025 municipal fee schedule adjusts the fees (Attachment C). As noted in the ordinance, the fee increases will come into effect 30 days after the Council approves the ordinance. Outreach efforts to notify the public of the increase will occur through the City’s website and notifications on the PAL app to inform riders of any fare changes. FISCAL/RESOURCE IMPACT STAKEHOLDER ENGAGEMENT ENVIRONMENTAL REVIEW ATTACHMENTS APPROVED BY: Vers.: Aug. 5, 2019 Page 1 of 6 AMENDMENT NO. 2 TO CONTRACT NO. C23184827 BETWEEN THE CITY OF PALO ALTO AND NOMAD TRANSIT, LLC This Amendment No. 2 (this “Amendment”) to Contract No. C23184827 (the “Contract” as defined below) is entered into as of September 23, 2024, by and between the CITY OF PALO ALTO, a California chartered municipal corporation (“CITY”), and NOMAD TRANSIT, LLC, a Delaware limited liability corporation, located at 10 Crosby Street, 2nd Floor, New York, NY 10013 (“CONSULTANT”). CITY and CONSULTANT] are referred to collectively as the “Parties” in this Amendment. R E C I T A L S A. The Contract (as defined below) was entered into by and between the Parties hereto for the provision of providing transit and shuttle services, inclusive of equipment, transportation planning, customer engagement, and marketing services, labor and vendor services, and the technology to support services, as detailed therein. B. The Parties now wish to amend the Contract in order to increase the compensation by One Million, Two Hundred Thousand Dollars ($1,200,000.00) from Two Million, Six Hundred One Thousand, Five Hundred Fifty Dollars ($2,601,550.00) to a new total not-to- exceed Three Million, Eight Hundred One Thousand, Five Hundred Fifty Dollars (3,801,550.00) and extend the term by one year to expire December 31, 2025. NOW, THEREFORE, in consideration of the covenants, terms, conditions, and provisions of this Amendment, the Parties agree: SECTION 1. Definitions. The following definitions shall apply to this Amendment: a.Contract. The term “Contract” shall mean Contract No. C23184827 between CONSULTANT and CITY, dated December 12, 2022, as amended by: Amendment No.1, dated April 10, 2023 b.Other Terms. Capitalized terms used and not defined in this Amendment shall have the meanings assigned to such terms in the Contract. SECTION 2. Section 2, TERM of the Contract is hereby amended to read as follows: “The term of this Agreement shall be from the date of its full execution through December 31, 2025,unless terminated earlier pursuant to Section 19 (Termination) of this Agreement.” ATTACHMENT A Vers.: Aug. 5, 2019 Page 2 of 6 SECTION 3. Section 4, “NOT TO EXCEED COMPENSATION” of the Contract is hereby amended to read as follows: “The compensation to be paid to CONSULTANT for performance of the Services shall be based on the compensation structure detailed in Exhibit C, entitled “COMPENSATION,” including any reimbursable expenses specified therein, and the maximum total compensation shall not exceed Three Million, Eight Hundred One Thousand, Five Hundred Fifty Dollars (3,801,550.00).The hourly schedule of rates, if applicable, is set out in Exhibit C-1, entitled “SCHEDULE OF RATES.” Any work performed or expenses incurred for which payment would result in a total exceeding the maximum compensation set forth in this Section 4 shall be at no cost to the CITY.” SECTION 4. The following exhibit(s) to the Contract is/are hereby amended or added, as indicated below, to read as set forth in the attachment(s) to this Amendment, which is/are hereby incorporated in full into this Amendment and into the Contract by this reference: a. Exhibit “B” entitled “Schedule of Performance, Amendment 1”, AMENDED, REPLACES PREVIOUS. b. Exhibit “C” entitled “Compensation, Amendment No. 1”, AMENDED, REPLACES PREVIOUS. SECTION 5. Legal Effect.Except as modified by this Amendment, all other provisions of the Contract, including any exhibits thereto, shall remain in full force and effect. SECTION 6. Incorporation of Recitals. The recitals set forth above are terms of this Amendment and are fully incorporated herein by this reference. (SIGNATURE BLOCK FOLLOWS ON THE NEXT PAGE.) Vers.: Aug. 5, 2019 Page 3 of 6 SIGNATURES OF THE PARTIES IN WITNESS WHEREOF, the Parties have by their duly authorized representatives executed this Amendment effective as of the date first above written. CITY OF PALO ALTO City Manager APPROVED AS TO FORM: City Attorney or designee NOMAD TRANSIT, LLC Officer 1 By: Name: Title: Officer 2 By: Name: Title: Attachments: Exhibit “B” - “Schedule of Performance, Amendment 1”, AMENDED, REPLACES PREVIOUS. Exhibit “C” - “Compensation, Amendment No. 1”, AMENDED, REPLACES PREVIOUS. Vers.: Aug. 5, 2019 Page 4 of 6 EXHIBIT B SCHEDULE OF PERFORMANCE AMENDMENT NO. 1 (AMENDED, REPLACES PREVIOUS) CONSULTANT shall perform the Services so as to complete each milestone within the number of days/weeks specified below. The time to complete each milestone may be increased or decreased by mutual written agreement of the Project Managers for CONSULTANT and CITY so long as all work is completed within the term of the Agreement. CONSULTANT shall provide a detailed schedule of work consistent with the schedule below within 2 weeks of receipt of the notice to proceed (“NTP”) from the CITY. Milestones Completion - Number of Days/Weeks (as specified below)from NTP Finalized project scope By end of Week 6 Established service parameters By end of Week 6 Finalized data sharing plan By end of Week 6 Defined marketing plan By end of Week 6 Localized software suite By end of Week 7 Quality assurance and internal system testing completed By end of Week 7 Pre-launch driver and staff training completed By end of Week 7 Rider and Driver Apps available for download By end of Week 7 Fleet ready for live service By end of Week 12 Live field testing completed By end of Week 12 All pre-launch marketing completed By end of Week 12 M-F, 8a-6p transit services provided Ongoing delivery beyond service launch Feedback gathered from initial users Quarterly review Post-launch marketing and promotions plan initiated Monthly review Ongoing optimization of day-to-day operations Monthly review End of service marketing plan 6 weeks before anticipated transit services end Final reporting requirements completed Before final disbursement of funds Vers.: Aug. 5, 2019 Page 5 of 6 EXHIBIT C COMPENSATION, AMENDMENT NO. 1 (AMENDED, REPLACES PREVIOUS) CITY agrees to compensate CONSULTANT for Services performed in accordance with the terms and conditions of this Agreement, and as set forth in the budget schedule below. Compensation shall be calculated based on the rate schedule attached as Exhibit C-1 up to the not to exceed budget amount for each task set forth below. CITY’s Project Manager may approve in writing the transfer of budget amounts between any of the tasks or categories listed below, provided that the total compensation for the Services, including any specified reimbursable expenses, and the total compensation for Additional Services (if any, per Section 4 of the Agreement) do not exceed the amounts set forth in Section 4 of this Agreement. CONSULTANT agrees to complete all Services, any specified reimbursable expenses, and Additional Services (if any, per Section 4), within this/these amount(s). Any work performed or expenses incurred for which payment would result in a total exceeding the maximum amount of compensation set forth in this Agreement shall be at no cost to the CITY. BUDGET SCHEDULE TASK NOT TO EXCEED AMOUNT Task 1 (Upfront Costs) $92,500.00 + $13,500.00* Task 2 (Vehicle Hours (Up to Hours 41,275)) $2,503,050.00 + $1,186,500.00** Task 3 (Estimated Electricity Cost (To be Treated as a Pass-Through) $6,000.00 Sub-total for Services $3,801,550 Reimbursable Expenses (if any) $0.00 Total for Services and Reimbursable Expenses $3,801,550 Additional Services (if any, per Section 4) $0.00 Maximum Total Compensation $3,801,550 * The $13,500 is added by Amendment 2 for the cost of moving from hybrid vans to fully electric vans per TFCA requirements. Vers.: Aug. 5, 2019 Page 6 of 6 ** The $1,186,500 is added by Amendment 2. Note: Pricing assumes that the Services provided hereunder are tax exempt and assumes service hours of 8am-6pm M-F. Pricing assumes launch within 4 months of contract signing. Estimated Electricity Cost assumes 2 active EVs with 171 Wh/km efficiency and electricity cost at $0.23 / kWh. Electricity costs will be treated as a pass-through. In the event that the Services cease to be tax exempt, such taxes will be treated as pass-through and charged to the City. REIMBURSABLE EXPENSES CONSULTANT’S ordinary business expenses, such as administrative, overhead, administrative support time/overtime, information systems, software and hardware, photocopying, telecommunications (telephone, internet), in-house printing, insurance and other ordinary business expenses, are included within the scope of payment for Services and are not reimbursable expenses hereunder. Reimbursable expenses, if any are specified as reimbursable under this section, will be reimbursed at actual cost. The expenses (by type, e.g. travel) for which CONSULTANT will be reimbursed are: NONE up to the not-to-exceed amount of: $0.00. All requests for reimbursement of expenses, if any are specified as reimbursable under this section, shall be accompanied by appropriate backup documentation and information. PURCHASING UIDE PPENDIX AGE OF Stanford Agreement No. 63080569 City of Palo Alto C25192867 Appendix L: Short Form Agreement for Revenue Contracts See next page for Forms and Instructions: Docusign Envelope ID: 713D4200-78E8-499D-BB31-41EE899E7CC3 Stanford Agreement No. PAGE OF PPENDIX HORT ORM GREEMENTS FOR EVENUE ONTRACTS Short Form Agreement for Revenue Contracts Cost-Sharing Agreement between the City of Palo Alto and Stanford for On-Demand Transit Services Contract #: 63080569 BY THIS AGREEMENT MADE AND ENTERED INTO ON OCTOBER 7, 2024 BY AND BETWEEN THE CITY OF PALO ALTO (“CITY”) AND THE BOARD OF TRUSTEES OF THE LELAND STANFORD JUNIOR UNIVERSITY (“STANFORD”), 3215 Porter Drive, Palo Alto, CA 94304-1286. IN CONSIDERATION OF THEIR MUTUAL COVENANTS, THE PARTIES HERETO AGREE AS FOLLOWS: CITY SHALL PROVIDE OR FURNISH THE FOLLOWING SPECIFIED 1) GOODS AND MATERIALS, 2) SERVICES OR 3) A COMBINATION THEREOF AS SPECIFIED IN THE EXHIBITS NAMED BELOW AND ATTACHED HERETO AND INCORPORATED HEREIN BY THIS REFERENCE: EXHIBIT A – SCOPE OF SERVICES. EXHIBITS THE FOLLOWING ATTACHED EXHIBITS HEREBY ARE MADE PART OF THIS AGREEMENT: CONTRACT IS NOT COMPLETE UNLESS ALL EXHIBITS ARE ATTACHED Exhibit A - Scope of Services Exhibit B- Payment Plan Exhibit C- Insurance Requirements TERM THE SERVICES AND/OR MATERIALS FURNISHED UNDER THIS AGREEMENT SHALL COMMENCE ON SEPTEMBER 1,2024 AND SHALL BE COMPLETED BY AUGUST 30, 2025 COMPENSATION FOR THE FULL PERFORMANCE OF THIS AGREEMENT: STANFORD SHALL PAY CITY AN AMOUNT NOT TO EXCEED $600,000 IN ACCORDANCE WITH EXHIBIT B. CITY ACCOUNT NUMBER: COST CENTER GL ACCT PROJECT /INTERNAL ORDER PHASE NO. DOLLAR AMOUNT 66030004 31990 GENERAL TERMS AND CONDITIONS ARE INCLUDED ON ALL PAGES OF THIS AGREEMENT. . HOLD HARMLESS. Each party shall indemnify, defend and hold harmless the other party, its Council Members, officers, employees, and agents from any and all demands, claims or liability of any nature, including wrongful death, caused by or arising out of the other party, its officers’, directors’, employees’ or agents’ negligent acts, errors, or omissions, or willful misconduct. ENTIRE AGREEMENT. This agreement and the terms and conditions on the following pages represent the entire agreement between the parties with respect to the purchase and sale of the goods, equipment, materials or supplies or payment for services which may be the subject of this agreement. All prior agreements, representations, statements, negotiations and undertakings whether oral or written are superseded hereby. Docusign Envelope ID: 713D4200-78E8-499D-BB31-41EE899E7CC3 PURCHASING UIDE PPENDIX AGE OF IN WITNESS THEREOF, THE PARTIES HAVE EXECUTED THIS AGREEMENT THE DAY, MONTH, AND YEAR FIRST WRITTEN ABOVE. PROJECT MANAGER AND REPRESENTATIVE FOR STANFORD OR CITY Nathan Baird BY: Office of Transportation TITLE: Procurement Director P.O, BOX 10250 PALO ALTO, CA 94303 Date: Telephone 650-329-2520 INVOICING SEND ALL INVOICES TO THE CITY, ATTN: PROJECT MANAGER CITY OF PALO ALTO APPROVALS: (ROUTE FOR SIGNATURES ACCORDING TO NUMBERS IN APPROVAL BOXES BELOW)  Budgeted ADMINISTRATION INSURANCE REVIEW BY: BY: Docusign Envelope ID: 713D4200-78E8-499D-BB31-41EE899E7CC3 10/15/2024 Stanford Agreement No. PAGE OF PPENDIX HORT ORM GREEMENTS FOR EVENUE ONTRACTS CITY OF PALO ALTO GENERAL TERMS AND CONDITIONS A.ACCEPTANCE. This agreement is limited to the terms and conditions on pages 1 through 4 inclusive and any exhibits referenced. B.GOVERNING LAW AND VENUE. This agreement shall be governed by the laws of the state of California. The courts of the State of California in the County of Santa Clara and the federal court for the Northern District of California have sole jurisdiction over any disputes that arise over this agreement. C.NO EMPLOYMENT; CONFLICTS. It is understood and agreed that this agreement is not a contract of employment in the sense that the relation of master and servant exists between the CITY and undersigned. At all times CITY shall be deemed to be an independent contractor and STANFORD is not authorized to bind CITY to any contracts or other obligations. In executing this agreement, STANFORD certifies that no one who has or will have any financial interest under this agreement is an officer or employee of CITY. D.INSURANCE. STANFORD agrees to provide the insurance specified in the “Insurance Requirements” form attached hereto as Exhibit C or self-insure to equivalent standards. In the event STANFORD is unable to secure a policy endorsement naming the City of Palo Alto as an additional insured under any comprehensive general liability or comprehensive automobile policy or policies, STANFORD shall at a minimum, and only with the written approval of City’s Risk Manager or designee, cause each such insurance policy obtained by it to contain an endorsement providing that the insurer waives all right of recovery by way of subrogation against CITY, its officers, agents, and employees in connection with any damage, claim, liability personal injury, or wrongful death covered by any such policy. Each such policy obtained by STANFORD shall contain an endorsement requiring thirty (30)days' written notice from the insurer to CITY before cancellation or reduction in the coverage or limits of such policy. STANFORD shall provide certificates of such policies or other evidence of coverage satisfactory to City's Risk Manager, together with evidence of payment of premiums, to CITY at the commencement of this agreement, and on renewal of the policy, or policies, not later than twenty (20) days before expiration of the terms of any such policy. CITY agrees to maintain insurance of equivalent standards as STANFORD. E.TERMINATION. This agreement may be terminated by either party upon thirty (30) days written notice to the other party. Monies then owing based upon work satisfactorily accomplished shall be paid to CITY. F.CHANGES. This agreement shall not be assigned or transferred without the written consent of the either party. No changes or variations of any kind are authorized without the written consent of the both parties. G.Reserved. H.NO IMPLIED WAIVER. No payment, partial payment, acceptance, or partial acceptance by either party shall operate as a waiver on the part of such party of any of its rights under this agreement. I.Reserved. J.Reserved. K.Reserved. L.Reserved. M.PRICE TERMS. Extra charges, invoices and payment. No extra charges of any kind will be allowed unless specifically agreed to in writing by CITY. All state and federal excise, sales and use taxes shall be stated separately on the invoices. In event CITY reduces its price for such materials or services during the term of this agreement, CITY agrees to reduce the prices or rates hereof correspondingly. N.Reserved. O.Reserved. P.NO THIRD PARTY BENEFICIARIES. Nothing in this Agreement shall give any rights to any person other than the Parties to this Agreement. Q.USE OF STANFORD TRADEMARKS. CITY agrees not to use Stanford's name or other Stanford trademarks (together referred to herein as the "Marks"), or the name or trademarks of any related organization, or to quote any of Stanford's faculty, staff, students, volunteers or agents ("Quotes"), either in writing or orally, without the prior written consent of STANFORD’s Senior Director, University Brand Management. This prohibition includes, but is not limited to, use of the Marks or Quotes in press releases, advertising, marketing materials, other promotional materials, presentations, photographs for commercial use, case studies, reports, websites, application or software interfaces, and other electronic media. Docusign Envelope ID: 713D4200-78E8-499D-BB31-41EE899E7CC3 Page 5 of 7 EXHIBIT A – SCOPE OF SERVICES In consideration for Stanford’s payment under this Agreement, City shall: 1. Expand the City’s On-Demand Transit program delivered under City contract C23184827or its successors with Nomad Transit LLC (“program”) to include the Stanford Research Park during all regular hours of the program. 2. Provide free rides to and from the Stanford Research Park as part of the program in lieu of charging riders the regular fee. 3. Provide Stanford with ride data on a periodic basis regarding rides to/from Stanford Research Park. Such data will not include personal information of the riders. Docusign Envelope ID: 713D4200-78E8-499D-BB31-41EE899E7CC3 Page 6 of 7 EXHIBIT B – PAYMENT PLAN Stanford shall pay City a pro-rata amount based upon the total monthly cost of the service and the percentage of trips to and from the Standford Research Park (SRP), with a not-to-exceed annual amount of $600,000. For each month, the formula shall be the total monthly cost invoiced, multiplied by the total percentage of completed trips to and from the SRP with the trip data being provided by Nomad Transit LLC. Example of Monthly Billing to SRP: Month Monthly SRP % of all Total Monthly January $ 100,000.00 35% $35,000 Docusign Envelope ID: 713D4200-78E8-499D-BB31-41EE899E7CC3 Page 7 of 7 EXHIBIT C – INSURANCE REQUIREMENTS STANFORD WARRANTS THAT IT HAS INSURANCE TO SUPPORT THIS AGREEMENT AND THAT IT WILL MAINTAIN COVERAGE FOR THE DURATION OF THIS AGREEMENT AS PROVIDED BELOW. CONTRACT IS CONTINGENT ON COMPLIANCE WITH CITY’S INSURANCE REQUIREMENTS AS SPECIFIED HEREIN. REQUIRED TYPE OF COVERAGE REQUIREMENT MINIMUM LIMITS EACH OCCURRENCE AGGREGATE YES YES WORKER’S COMPENSATION EMPLOYER’S LIABILITY STATUTORY STATUTORY STATUTORY STATUTORY BODILY INJURY $1,000,000 $1,000,000 PROPERTY DAMAGE $1,000,000 $1,000,000 LIABILITY BODILY INJURY & PROPERTY DAMAGE COMBINED. $1,000,000 $1,000,000 BODILY INJURY - EACH PERSON $250,000 $500,000 $250,000 $500,000 NON-OWNED PROPERTY DAMAGE $100,000 $100,000 NO PROFESSIONAL LIABILITY, INCLUDING, ERRORS AND OMISSIONS, MALPRACTICE (WHEN APPLICABLE), AND NEGLIGENT PERFORMANCE ALL DAMAGES $1,000,000 Docusign Envelope ID: 713D4200-78E8-499D-BB31-41EE899E7CC3 *NOT YET APPROVED* 1 115_20240822_ts24 Ordinance No. Ordinance of the Council of the City of Palo Alto Amending the Fiscal Year 2025 Municipal Fee Schedule to Amend Existing Fees for City’s Palo Alto Link On- Demand Transit Service The Council of the City of Palo Alto ORDAINS as follows: SECTION 1. Findings and Declarations. The City Council finds and declares as follows: A.Through this ordinance, the City desires to increase on-demand transit service fees for its Palo Alto Link service in October 2024. The City will remove discounted fares, increase Monthly Passes to $130 per month, charge a fee from free up to $4.00 per passenger trip, and increase Weekly Passes to $40.00 per week. B.The increase of fees will assist the City in continuing sustainable operations of the Palo Alto Link after the successful majority grant-funded pilot in which the VTA provided $2 million has concluded. SECTION 2. The Council of the City of Palo Alto amends the Fiscal Year 2025 Municipal Fee Schedule by adopting the amended fees for on-demand transit as set forth in Exhibit “A” and incorporated here by reference. SECTION 3. The fees in this Ordinance are for a specific government service provided directly to the payor that is not provided to those not charged and which does not exceed the reasonable costs to the local government of providing the service or product. Pursuant to Art. XIII C, Section 1(e)(2) of the California Constitution, this fee is not a tax. SECTION 4. The Council finds that this ordinance is not a “project” under CEQA because it has no potential for resulting in either a direct or reasonable foreseeable indirect change in the environment. // // // // // // // ATTACHMENT C *NOT YET APPROVED* 2 115_20240822_ts24 SECTION 5. This ordinance shall be effective upon adoption as an amendment to the City’s FY25 budget and shall be implemented within 60 days of adoption. INTRODUCED: PASSED: AYES: NOES: ABSENT: ABSTENTIONS: ATTEST: City Clerk Mayor APPROVED AS TO FORM: APPROVED: Assistant City Attorney City Manager Chief Transportation Official Director of Administrative Services *NOT YET APPROVED* 3 115_20240822_ts24 Attachment A Fiscal Year 2025 Municipal Fee Schedule Office of Transportation Fees Dear Mayor and Council Members, On behalf of City Manager Ed Shikada, please see staff responses below for questions from Council Member Tanaka on the Monday, October 28 Council Meeting. Item 5: Approval of Construction Contract Number C25192135 with Anderson Pacific Engineering Construction, Inc. in the Amount Not-to-Exceed $6,215,000; Authorization for the City Manager or Their Designee to Negotiate and Execute Change Orders up to a Not-to- Exceed Amount of $621,500 for Related, Additional but Unforeseen Work Which May Develop During the Project; Approval of Amendment Number 5 to Contract C21176592C with Carollo Engineers, Inc. in the Amount of $1,314,192 for a New Compensation Not-to-Exceed Amount of $14,695,384 for the Wastewater Treatment Fund for the 12kV Electrical Power Distribution Loop Rehabilitation Bid Package 2 Project at the Regional Water Quality Control Plant, Funded by the Plant Repair, Retrofit, and Equipment Replacement Project (WQ-19002); CEQA Status – Exempt Under Section 15301 Staff is confident in the sufficiency of the contingency, given the comprehensive bid package and improved knowledge about supply chain uncertainties. If additional contingency is needed, staff will return to Council with an appropriate recommendation. Staff requested proposals from all five pre-approved construction management firms but only received the proposal from Carollo Engineers. As described in the report, other firms indicated they would not be submitting a proposal because they were not well-positioned for the work or were nonresponsive. Carollo Engineers has performed well in its management of the Bid Package 1 construction project, and staff believes their proposal is cost-effective and positions the Bid Package 2 project for a positive outcome. This project is authorized by the existing partner agreements. Item 8: Approval of Amendment No. 1 to Contract Number C21181420 with West Coast Arborists, Inc. for Tree Pruning and Removal Services in the Amount of $3,011,228, for a New Total Not-to-Exceed Amount of $6,776,608, and Extend the Term by Two Years; CEQA Status – Exempt per Section 15301(h) (maintenance of existing landscape) Why hasn’t a competitive bidding process been conducted for this contract extension, and The RFP and the contract for this three -year general services agreement include the ability to extend the contract up to two years if both parties agree. The service quality West Coast Arborists (WCA) has provided over the three years of the contract has been excellent. Their proposal to provide a 2% cost reduction across all contract items for the two-year extension will save the City $55,818 over the Year Three contract prices for the two-year extension. Industry-wide, staff estimates the costs for municipal tree trimming services have increased between 9% and 15% since the release of the last RFP. WCA is currently servicing more than 350 municipal tree maintenance contracts and is considered an industry leader in providing these services. They operate with 100% diversion of all wood waste produced by their maintenance work. Most of the large wood generated, such as tree trunks, are processed by their Urban Wood Division for use in urban lumber and consumer ready products. All wood mulch generated by WCA tree maintenance is either processed into commercial arbor mulch or composted dire ctly into compost and other soil products. As described in the staff report, Palo Alto’s contract specifications for tree maintenance include standards that meet or exceed typical industry standards. City staff receives unsolicited feedback from citizens on their experience with WCA on a fairly regular basis. Compliments on the services provided and details on their positive interactions with the WCA contract crews far outweigh the few complaints received. Staff conducts an annual Community Forum session on Urban Forestry with the Parks and Recreation Commission, which is an opportunity for community members to learn about and provide input on management of the urban forest, including street tree maintenance. Item 10: Approval of Amendment No. 2 to Contract Number C23184827 with Nomad Transit, LLC (Via) in the Amount of $1,200,000 for a total not to exceed $3,801,500 to Continue the City of Palo Alto On-Demand Transit Service through June 2025; Approve a Cost Sharing Agreement with Stanford Research Park to Partially Fund the Service up to $600,000; and Adopt an Ordinance Amending the FY 2025 Municipal Fee Schedule to Increase Fares; CEQA status – not a project 1.Considering the current economic uncertainty, how does the city plan to mitigate potential financial impacts on ridership and funding stability? What specific economic indicators are being monitored to assess risk? Staff response: As written in the staff report: The City has secured funding from Stanford Research Park ($600,000) and the TFCA ($441,000) to reduce reliance on the General Fund. "The FY 2025 Adopted Operating Budget has sufficient funding... with $500,000 in net General Fund support." Staff also continues exploring new partners and grant opportunities. The service will run as a pilot through June 30, 2025, as the service as well as other alternatives will be evaluated for long -term viability. 2.How is the Palo Alto Link service's operational efficiency and cost compared to other similar on-demand transit services in our region? Are we confident that we are not investing in a service that is less efficient than alternatives? Staff response: Other California implementations of on-demand transit similar to this range from $43-$78 per trip (LA Metro, SacRT, OCTA, Carlsbad). The Link’s service and cost efficiency has improved and the operating costs per ride have dropped from over $30 to $24.60. Palo Alto Link remains in the pilot phase and will be re -evaluated during this 10- month extension. 3.Given the significant fare increases proposed, what specific measures are being implemented to ensure that ridership does not decline? Can you guarantee that these increases will not deter low-income users or seniors from using the service? Staff response: We will provide advance notice of the fare increase. The $4 fare is reasonable compared to VTA’s regular bus fare $2.50, given Palo Alto Link’s higher level of service. Staff will monitor ridership. The fare adjustments in conjunction with grant funding and renegotiation of the SRP cost-sharing agreement were a part the City’s strategy in the development of a more fiscally sustainable program, as directed by the Finance Committee during the FY 2025 budget process. The impact of these adjustments will be closely monitored as the program continues for the remainder of the fiscal year.