TO: AC Transit Board of Directors
FROM: Michael A. Hursh, General Manager
SUBJECT: Broadway Shuttle Contract Renewal
ACTION ITEM
RECOMMENDED ACTION(S):
Title
Consider authorizing the General Manager to execute a contract renewal with the City of Oakland (City) for operation of the Broadway Shuttle.
Body
BUDGETARY/FISCAL IMPACT:
The fully allocated cost of the Broadway Shuttle service for FY 2019-20 is approximately $2.1 million, of which the City of Oakland will reimburse the District approximately $900,000. This results in a District funded operating subsidy (the difference of operation and expense revenue) of $1.3 million. These calculations are based on the District's fully allocated service rate of $199 per revenue hour and the City of Oakland reimbursement rate of $86 per service hour under the current shuttle contract. Under the terms of the renewal of the draft Transit Service Agreement, the reimbursement rate would increase to $92 per service hour for the remainder of FY2019-20, to $95 in FY2020-21, and to $98 in FY2021-22.
BACKGROUND/RATIONALE:
AC Transit has operated the Broadway Shuttle under contract with the City of Oakland since 2010, with the current contract set to expire December 31st, 2019. Service runs along Broadway Monday to Friday from 7 AM to 7 PM between Embarcadero West (Jack London Square) and Grand Avenue, and from 7 PM to 10 PM between Embarcadero West and 27th Street. With an average of 2,000 daily boardings along the one-mile route, the service is one of the most productive in terms of passengers per revenue hour in the AC Transit system.
The Broadway Shuttle is funded in part by the San Francisco Bay Ferry, the Downtown Oakland Association, the Jack London Square Business Improvement District, the Bay Area Air Quality Management District (BAAQMD), and the Alameda County Transportation Commission (ACTC). The City of Oakland collects funds from these organizations, which it uses to reimburse the District for a portion ...
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