STAFF REPORT
DATE: July 18, 2023
TO: Justin Hess, City Manager
FROM: Patrick Prescott, Community Development Director VIA David Kriske, Assistant Community Development Director BY Nicholas Burant, Administrative Analyst II
SUBJECT: Approval of a Right -of-Entry Agreement with Pacific Coast Sightseeing, Tours and Charters, Inc. to Provide Inter-City Bus Service at the Downtown Burbank Metrolink Station
RECOMMENDATION
1. Find the approval of a Right -of-Entry Agreement (Attachment 1) for use of a bus bay at the Downtown Burbank Metrolink Station (“Metrolink Station”) exempt from review under the California Environmental Quality Act (CEQA) pursuant to the CEQA Guidelines Section 15301, the exemption for minor modifications to existing structures involving no expansion of existing use.
2. Approve a one-year Right-of-Entry Agreement (including four, one-year options to extend) (Attachment 1) with Pacific Coast Sightseeing, Tours and Charters, Inc . (“Megabus”) to continue operations at the Metrolink Station’
3. Authorize the Community Development Department Director , as the City Manager’s Designee, to execute the Right -of-Entry Agreement and to administratively execute and approve any subsequent one-year options to extend.
BACKGROUND
Megabus is a private, national, intercity bus service. In August 2013, Megabus began operating at the Metrolink Station on a trial basis. On August 12, 2014, the Council approved a Right -of-Entry Agreement (one- year term plus four one- year extensions) allowing Megabus to use the Metrolink Station as a stop. After this agreement expired, the Council approved a new Right-of-Entry Agreement at the September 10, 2019 Council meeting. The COVID-19 pandemic caused travel demand to dwindle and as such , both the City and Megabus mutually terminated the second agreement.
COMMUNITY
DEVELOPMENT
2 Megabus is reestablishing their service network and is seeking to restart operations in Burbank. It would be part of a service that provides three trips north to Sacramento and three trips south to Anaheim throughout the day. Megabus relies on internet sales for its reservations. Dwell times for buses are short (less than 15 minutes) and assistance i s provided to help with passenger loading.
DISCUSSION
The prior agreements charged Megabus a monthly license fee which reimbursed the City for additional security and maintenance costs at the Metrolink Station. Revenues from the fee were deposited directly into the City’s Proposition C Local Return Fund, which were used to maintain the Metrolink Station.
Staff has prepared an updated agreement as Attachment 1. The terms of the proposed agreement will allow Megabus to operate at the Metrolink S tation for up to a total of five years (one- year agreement with the option to administratively approve up to four subsequent one- year extensions). Initially, the City was concerned with increased maintenance and security costs, wear on City streets caused by the large vehicles used to provide the service, and crime attributed to Megabus operations. However, these issues did not materialize during the nearly seven years while Megabus accessed the Metrolink Station. Both the Public Works Department and the Police Department have confirmed that there have been no significant incidents at the Metrolink Station or within the City directly linked to Megabus.
The staff report to Council for the agreement executed in 2019 noted that Megabus had a ridership of over 780 passengers per week. Providing another intercity transportation option to cities beyond the Los Angeles metropolitan area can be a benefit to Burbank residents. Megabus tickets can be as cheap as $1 if booked early enough. Furthermore, Burbank residents may drive to the Metrolink Station or may take several options such as BurbankBus or Metro bus lines to reach Megabus.
ENVIRONMENTAL REVIEW
Approving this Right-of-Entry Agreement is Categorically Exempt from CEQA pursuant to CEQA Guidelines Section 15301 (Class 1, Existing Facilities ) because this activity involves negligible or no expansion of existing or former use of the Metrolink Station.
Approving the Right-of-Entry Agreement is an activity intrinsic to operating the existing Downtown Burbank Metrolink Station and park-and-ride facility. Approving the Right -of- Entry Agreement does not expand the use of this existing facility.
3 FISCAL IMPACT
There is no immediate fiscal impact to the City in approving the Right-of-Entry Agreement with Megabus for continuing service at the Metrolink Station. The maintenance and security costs attributed to Megabus’ use of the Metrolink Station are covered by the agreement’s license fee so that Burbank’s monthly expenses for the station are not impacted. The agreement includes a monthly license fee that starts at $5,400 per month for the first year ($64,800 in year one) and will increase each year in accordance with the Los Angeles–Orange County–Riverside Consumer Price Index, with August 2023 as the base, if options for such one-year extensions are exercised under the agreement.
CONCLUSION
Megabus successfully operated intercity transportation through Burbank for nearly seven years and wishes to restart their service. The City benefits from having additional transportation options at the Metrolink Station and Megabus can provide this service with no adverse impacts to the Metrolink Station.
ATTACHMENT
Attachment 1 – Right-of-Entry Agreement with Pacific Coast Sightseeing, Tours and Charters, Inc