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HomeMy WebLinkAbout06/20/2006, C8 - EXTENSION OF THE CURRENT CAL POLY TRANSIT SUBSIDY AGREEMENT counat MdigD� 6/20/2006 acEnda Report It. C I T Y O F SAN LU I S O B I S P O FROM: Jay Walter,Director of Public Works Prepared By: Austin O'Dell,Transit Manager SUBJECT: EXTENSION OF THE CURRENT CAL POLY TRANSIT SUBSIDY AGREEMENT CAO RECOMMENDATION Authorize the CAO to approve an amendment to our Cal Poly Transit Subsidy Agreement extending its term by an additional two months. DISCUSSION The current Cal Poly Transit Subsidy Agreement is set to expire on June 30, 2006. This agreement allows Cal Poly students, faculty and employees to ride the SLO Transit bus system free in exchange for a direct contribution by Cal Poly to SLO Transit's revenue stream. While the City and Cal Poly have been discussing a new agreement to continue the program, it has not yet been finalized for Council consideration. This is primarily due to the significant cost increases to SLO Transit over the last five years (the last time we negotiated the agreement) and our need to pass on a higher amount of funding in the request to Cal Poly. Cal Poly staff has not yet had the opportunity to complete its internal analysis on the proposed increase and will need some additional time to make a final decision on the agreement amount. It is important that we continue the free ride program after June 30th. Staff is therefore recommending that Council approve a two month extension of the current agreement (until August 31", 2006) to continue the program and service uninterrupted. Staff will continue to work with Cal Poly to bring the new agreement forward for Council consideration prior to the new termination date. Part of that agreement will be to make sure that the City is made whole for any funding differential in Cal Poly's contribution for the two month period. CONCURRENCES Cal Poly staff is aware of the extension proposal and is in agreement. FISCAL IMPACTS There will be no impact to the General Fund. G:\Smff-Reports-Agendas-MinutesLCAR\2006\TIansit\Cal Poly Subsidy Extension-PRODUCTION.doc