HomeMy WebLinkAbout07-20-2022 Transit Services Agreement with Cal Poly for FY 2022-23 and 2023-24 1
BUS SERVICE AGREEMENT
BY AND BETWEEN
CALIFORNIA POLYTECHNIC STATE UNIVERSITY
AND
THE CITY OF SAN LUIS OBISPO
1. Preamble
The City of San Luis Obispo (“the City”) operates a public transportation system in and
around the San Luis Obispo area, primarily composed of its “SLO Transit” bus service
(“Bus Service”). California Polytechnic State University (“Cal Poly”) is a public university
situated adjacent to the City.
The students, faculty and staff at Cal Poly enjoy the benefits of these Bus Services. Cal
Poly students constitute a significant portion of bus ridership. Cal Poly wishes to encourage
students, faculty, and staff to use these Bus Services as part of its overall transportation and
sustainability strategies and as a convenience to its students.
City has adopted its Climate Action Plan (CAP) with the goal of carbon neutrality by 2030.
The CAP identified the City’s public transportation system as a vital component to meet
this goal. The City wishes to provide public transportation services to the community to
comply with the CAP.
The City of San Luis Obispo and Cal Poly commit to partner in a joint process to develop
a revised financial model that will provide each entity a multi-year, sustainable financial
path related to transit cost recovery/costs for services required to serve the Cal Poly
community. This process, and model, will be completed by August 2023 and is intended
to address long term proportional demands placed on system for capital and to address
transit needs for the short, medium and long term related to the build out of the Cal Poly
Master Plan. In furtherance of these mutual goals and benefits, the parties hereby enter
into the following Agreement.
2. Term
The term of this Agreement will commence on July 1, 2022 and end June 30, 2024. This
Agreement supersedes all terms and conditions contained in the previous agreement
between the parties on the same subject with a term ending June 30, 2022.
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3. Bus Services
a. No Fare: In exchange for the consideration described in Section 4, no fare of any
kind shall be charged to Cal Poly students, faculty, and staff upon presentation of a
valid Cal Poly ID card.
b. Base Transit Service
i. Definition: “Base Transit Service” shall be defined as all Bus Services,
including all daytime and evening routes servicing the Cal Poly campus
(“Cal Poly Routes”), in operation as of July 1, 2019.
ii. Changes to Base Transit Service
1. No changes will be made to Base Transit Service without first notifying
Cal Poly’s Director of Transportation and Parking Services (“DTPS”)
or designee. Upon request, the City will meet and confer with the DTPS
to discuss any such changes and their potential impacts on the Cal Poly
community. During this meet and confer process, the City will, in good
faith, consider any alternatives presented by Cal Poly. The City further
agrees to include the DTPS in its planning and development process to
the extent changes in Base Transit Service may result.
2. No changes will be made to Cal Poly Routes without having met and
conferred with Cal Poly.
3. To the extent changes to Base Transit Service, whether consented to or
otherwise, materially impact Cal Poly’s beneficial use Bus Services
provided by the City, the parties will meet and confer to discuss
potential reduction of consideration as described in Section 4.
4. Consideration
Cal Poly agrees to pay the City in exchange for the services described in this Agreement
in accordance with the following terms and conditions:
a. Payment: Cal Poly will make annual fixed payments to the City for bus
services as described in Section 3(a) based on the below schedule. Payment
will be made in arrears quarterly.
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Period Annual Payment Quarterly Payment
July 1, 2022 through June 30, 2023 $600,000 $150,000
July 1, 2023 through June 30, 2024 $750,000 $187,500
b. Fare Changes: City is mandated to maintain a 20% farebox ratio to remain
eligible for state funding. The City will increase fares if state funding is in
jeopardy. The City will meet and confer with CAS Coordinator to discuss any
fare increase. Any new fare will be used to determine quarterly payments under
Section 4(a) while that fare is in effect.
5. Full Disclosure
The City agrees to share with Cal Poly all relevant information and documentation relating
to City’s operation of Bus Services. Reports and related documents on the subjects
enumerated below will be provided to Cal Poly’s Director of Transportation and Parking
Services or designee on a regular basis as prepared during the ordinary course of business.
The City will provide any other relevant documents or information upon request.
a. Revenue and expenses (operational costs)
b. Ridership
c. Farebox ratio
d. Bus Replacement
e. Discretionary Grant Applications
Cal Poly agrees to share with City all relevant information and documentation relating to
the parking fund and funding to the zero-fare bus pass program.
6. Cooperation
It is in the interest of both parties to cooperatively pursue any and all opportunities to reduce
costs, increase revenues and to execute plans for a more efficient transportation system. To
this end, both parties agree to make their respective resources available to advance the
following goals and activities:
a. Bus Service promotion and marketing
b. Identify and apply for grants
c. Rider surveys
d. Bus Service planning and development
e. Cal Poly Master Plan development
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7. Insurance
The City and Cal Poly are self-insured entities. The City and Cal Poly, and each of their
respective officers, employees and agents, shall be named as additional insureds under the
comprehensive general liability insurance policy maintained by the transit service provider
contracted with by City to provide public bus transit services in and around the City of San
Luis Obispo.
8. Entire Agreement, Amendments
This Agreement constitutes the entire agreement between the parties and supersedes any
and all prior discussions, negotiations or agreements, whether written or oral, that are not
fully set forth in this Agreement. This Agreement may only be amended, modified, or
extended by a writing executed by all Parties.
AGREED:
CAL POLY CITY OF SAN LUIS OBISPO
Dru Zachmeyer
Assistant Vice President
Strategic Business Services
Derek Johnson
City Manager
City of San Luis Obispo
Date
Date
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7/20/2022 | 1:20 PM PDT 7/20/2022 | 3:01 PM PDT