TO: AC Transit Board of Directors
FROM: Salvador Llamas, General Manager/Chief Executive Officer
SUBJECT: Line U Transit Service Agreement Second Option Year
ACTION ITEM
AGENDA PLANNING REQUEST: ?
RECOMMENDED ACTION(S):
Title
Consider authorizing the General Manager to exercise the second of five one-year options under agreements with Stanford University (the "University") and Stanford Health Care (the "Hospital") to continue operating Line U service at no cost to the District through August 31, 2026.
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 since 2005.
BUDGETARY/FISCAL IMPACT:
The cost of operating Line U service from September 1, 2025, through August 31, 2026, is $1,184,580, based on a fully loaded hourly rate of $281.48. Regional Measure 2 (RM2) bridge toll revenues will contribute a fixed amount of $311,238, with the remaining costs shared between the Stanford University and the Stanford Hospital.
The agreement allows for annual adjustment to the fully allocated rate, no later than July 1st, following the adoption of the District's operating and capital budget. Stanford University and Stanford Health Care receive quarterly invoices from the District and reimburse costs in a timely manner.
Exercising the second one-year option and operating Line U service through August 31, 2026, 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 t...
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