TO: AC Transit Board of Directors
FROM: Michael A. Hursh, General Manager/Chief Executive Officer
SUBJECT: Line U Transit Service Agreement First Option Year
ACTION ITEM
AGENDA PLANNING REQUEST: ?
RECOMMENDED ACTION(S):
Title
Consider authorizing the General Manager to exercise the first of five one-year options under agreements with Stanford University (the "University") and Stanford Health Care (ther "Hospital") to continue operating Line U service at no cost to the District through August 31, 2025.
Staff Contact:
Ramakrishna Pochiraju, Executive Director of Planning & Engineering
Body
STRATEGIC IMPORTANCE:
Goal - Convenient and Reliable Service
Initiative - Financial Efficiency and Revenue Maximization
Line U provides a critical mode of travel along the regionally significant Dumbarton Bridge corridor at no expense to the District.
BUDGETARY/FISCAL IMPACT:
The cost to operate Line U service from September 1, 2024 through August 31, 2025 is $1,130,360 based on an hourly rate of $266.16. Regional Measure 2 (RM2) bridge toll revenues will fund a fixed amount of $311,238, with the remaining costs split between the University and the Hospital. Exercising the first one-year options and operating Line U service for through August 31, 2025 will have a net-zero budget impact on the District.
BACKGROUND/RATIONALE:
On August 9, 2017, the AC Transit Board of Directors authorized the General Manager to enter into two Transit Service Agreements - one each with Stanford University (the University) and Stanford Health Care (the Hospital) - for operation of Line U service. The Transit Service Agreements state that Line U service would be equally funded by the University and the Hospital, less the fixed RM2 contribution, with no funding obligation from the District.
The original agreements were set to expire on August 31, 2023, but both the University and the Hospital expressed their desires to extend the existing Transit Service Agreements. Given t...
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