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SR-06-10-2014-3BCity of Santa Monica City Council Meeting: June 10, 2014 Agenda Item: 3—B To: Mayor and City Council From: Edward F. King, Director of Transit Services Subject: Extension of Payment and Service Agreement No. 9512 between City of Santa Monica and the University of California, Los Angeles (UCLA) Recommended Action Staff recommends that the City Council authorize the City Manager to negotiate and execute a first amendment to the Payment and Service Agreement No. 9512 with UCLA to extend the BruinGo! Transit Pass and Subsidy Program for an additional six months, while the City and UCLA continue negotiations for a new agreement. The six -month extension is anticipated to generate an estimated revenue of $370,000. Executive Summary Big Blue Bus (BBB) currently has an agreement with UCLA to provide unlimited bus access whereby students, staff and faculty members with valid UCLA Bruin identification cards can use the Big Blue Bus for free or reduced fare. This agreement is commonly referred to as the BruinGo! Transit Pass and Subsidy Program. PSA No. 9512 established a new negotiated rate with the term of agreement to expire on June 30, 2014. Staff recommends that an amendment to the PSA be negotiated and executed to extend the term by six additional months while the City and UCLA continue negotiations for a new contract. Discussion The term of PSA No. 9512 commenced on April 1, 2011 and is scheduled to terminate on June 30, 2014. By extending the PSA to terminate on December 31, 2014, the BruinGo! Transit Pass Program would continue to operate while allowing more time for BBB Staff and UCLA to determine a new negotiated rate. Under this six -month contract extension covering July 1, 2014 through December 31, 2014, UCLA would reimburse the Big Blue Bus for transit services using the existing fare structure of $0.86 per boarding for non - express riders and $1.69 per boarding for Line 10 Express riders. The estimated revenue for the six -month term is $370,000. 1 Financial Impacts & Budget Action The extension of the BruinGo! Transit Pass and Subsidy Program is for a six month period covering July 1, 2014 to December 31, 2014. UCLA will reimburse the BBB for transit services an estimated amount of $370,000 over the six month period. Revenues have been included in the FY 2014 -15 proposed budget. Prepared by: Suja Lowenthal, Transit Government & Community Relations Manager Approved: Edward F. King Director of Transit Se `a Forwarded to Council: Rod Gould City Manager Reference: Amended Agreement No. 9572 (CCS)