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HomeMy WebLinkAbout2019-10-01 Finance Committee Agenda PacketFinance Committee 1 MATERIALS RELATED TO AN ITEM ON THIS AGENDA SUBMITTED TO THE CITY COUNCIL AFTER DISTRIBUTION OF THE AGENDA PACKET ARE AVAILABLE FOR PUBLIC INSPECTION IN THE CITY CLERK’S OFFICE AT PALO ALTO CITY HALL, 250 HAMILTON AVE. DURING NORMAL BUSINESS HOURS. Tuesday, October 1, 2019 Special Meeting Community Meeting Room 5:30 PM Agenda posted according to PAMC Section 2.04.070. Supporting materials are available in the Council Chambers on the Thursday 12 days preceding the meeting. PUBLIC COMMENT Members of the public may speak to agendized items. If you wish to address the Committee on any issue that is on this agenda, please complete a speaker request card located on the table at the entrance to the Council Chambers/Community Meeting Room, and deliver it to the Clerk prior to discussion of the item. You are not required to give your name on the speaker card in order to speak to the Committee, but it is very helpful. Public comment may be addressed to the full Finance Committee via email at City.Council@cityofpaloalto.org. Call to Order Oral Communications Members of the public may speak to any item NOT on the agenda. Action Items 1.Approve Revised Workplan to Address the City Council Direction for Further Consideration of a Ballot Measure Future Meetings and Agendas Adjournment AMERICANS WITH DISABILITY ACT (ADA) Persons with disabilities who require auxiliary aids or services in using City facilities, services or programs or who would like information on the City’s compliance with the Americans with Disabilities Act (ADA) of 1990, may contact (650) 329-2550 (Voice) 24 hours in advance. MEMO City of Palo Alto (ID # 10712) Finance Committee Staff Report Report Type: Action Items Meeting Date: 10/1/2019 City of Palo Alto Page 1 Council Priority: Fiscal Sustainability Summary Title: Revised Workplan for Consideration of a Ballot Measure Title: Approve Revised Workplan to Address the City Council Direction for Further Consideration of a Ballot Measure From: City Manager Lead Department: Administrative Services Recommendation Staff recommends the Finance Committee review and direct staff to continue to work on ballot measure work within the refined workplan recommended in this report. Background The Finance Committee and City Council have been reviewing and refining potential ballot measure options since June 2019 as part of the 2019 Council Priority Fiscal Sustainability. Relevant reports and presentations are linked below. 2019 Fiscal Sustainability Workplan, 4/22/19: - www.cityofpaloalto.org/civicax/filebank/documents/70506 City Council Approve Workplan for a Potential Revenue Generating Ballot Measure, 4/22/19: - www.cityofpaloalto.org/civicax/filebank/documents/70507 Finance Committee Review, Comment, and Accept Preliminary Revenue Estimates for Consideration of a Ballot Measure, 6/18/19: - www.cityofpaloalto.org/civicax/filebank/documents/72101 Finance Committee Evaluation and Discussion of Potential Revenue Generating Ballot Measures, 8/20/19: - www.cityofpaloalto.org/civicax/filebank/documents/73071 City Council Evaluation and Discussion of Potential Revenue Generating Ballot Measures City of Palo Alto Page 2 and Budget Amendment, 9/16/19: - www.cityofpaloalto.org/civicax/filebank/documents/73287 During this process, the Finance Committee serves as the working body to assist in the review of a potential revenue ballot measure for the November 2020 election, reviewing staff and consultant work, and stakeholder feedback. The Finance Committee will make its recommendations for consideration and action by the full seven-member City Council. Most recently, on September 16, 2019, the City Council provided the following direction to staff (summarized): Continue work exploring a potential ballot measure with the following focuses: a) Consider the following measure types as either a general tax or a special tax measure: - general business tax measure focused on head count, payroll, or square footage as the units of measure - parcel tax measure focused on square footage as the unit of measure; b) Continue further refined analysis on potential exemptions and tiered tax rate structures with the following guidance: - maintaining estimated revenue generation between 1 and 10 percent of General Fund revenues, - focus on implications regarding retail, restaurants, hospitality, and medical industries, and keeping potential tax structures simple and modern minimizing exemptions; c) Discuss next steps including continued stakeholder engagement with multiple business types; d) Direct Staff to compile an information sheet on San Francisco’s and East Palo Alto’s various business taxes; e) Develop a round of polling to test the type of taxation, levels of taxation, a phase in period and tiering based on type of business: - Test payroll, headcount, and square footage taxes; f) Potential revenue proceeds allocations to transportation and/or affordable housing shall be determined at a later date and informed by polling; and g) Consider a parcel tax or General Obligation (GO) Bond for unfunded infrastructure projects at a later date. Discussion As outlined above, the City Council provided additional direction to staff to focus future staff work related to a potential ballot. Staff has reviewed Council’s direction and has revised workplan for approval. Through September, the Finance Committee, City Council, and staff have accomplished the tasks set out as part of the original workplan. The table below outlines the revised key decision points for City Council and Finance Committee and notes anticipated staff work to be completed for context over the coming months. The workplan continues to anticipate an iterative approach for the Finance Committee and City Council providing information at a City of Palo Alto Page 3 steady pace and allows for continued review and refining of proposals. This plan reflects and ideal timeline which has many risks that may delay it further, details are outlined in more detail below. Schedule Task October 2019 Finance Committee provides direction on further work and next steps (items c, e, f) - Informed by the revised direction received by the full City Council on September 16, 2019 - Complete an initial poll and onboard necessary resource for outreach. Staff work - Obtain additional, complete, and more detailed data to incorporate into modeling potential measures per City Council direction. - Develop information sheet on San Francisco and East Palo Alto taxes assessed on businesses. - Engage with polling and outreach consultants to develop and implement polling and outreach strategy. November 2019 Finance Committee discuss and provide guidance to the City Council on potential revenue generating ballot measure(s) to pursue (items a, b, d) - Review more refined analysis on narrowed options including scenarios for rates, exemptions, and tiers Staff work - Continue stakeholder outreach and polling. December 2019 City Council: discuss findings from initial polling and stakeholder outreach and confirmation on potential ballot measure to pursue (items a – f) January 2020-May 2020 Staff work - Continue stakeholder outreach and an additional round of polling as directed, - Draft required legal and administrative documents. City Council and Finance Committee will be provided updates as necessary for status check-ins, feedback, and policy decisions. June 2020 City Council approves November 2020 ballot measure and specific measure language - Should the City Council choose to pursue a ballot measure(s), final approval including the ballot measure language needs to be submitted to the Santa Clara County Registrar of Voters in early August 2020. City of Palo Alto Page 4 Both polling and stakeholder outreach are informally outlined in the monthly timeline above. The frequency and appropriate stakeholders are highly dependent on the types of proposals pursued. In order to meet these timelines, it is expected that reliance on staff and consultant expertise on strategies be used. Specifically, polling was completed in 2016 and 2018. In 2016, the polling was focused on a transportation tax measure and the questions and results can be found here: www.cityofpaloalto.org/civicax/filebank/documents/53000. In 2018, an initial round of polling, similar to what is proposed in the timeline above was completed first, and it informed a more detailed second round of polling that was completed at a later date. The questions and results of the 2018 initial polling can be found here: www.cityofpaloalto.org/civicax/filebank/documents/53000. A multi stepped and informal stakeholder engagement process for a business tax measure would be recommended as both outreach about instituting a business tax would be necessary for education and awareness but also for consultation regarding the design and structure. Candid direct feedback through an iterative process will assist in the development of a viable measure that is administratively feasible. Potential Risks to Proposed Workplan This workplan assumes staff, consultant, and critical data availability immediately. As discussed previously, staff is working to obtain more detailed and authoritative data sources to further refine scenario modeling and although in process, essential data is still being gathered. Incorporating polling and outreach efforts assume expeditious procurement processes as well as immediate availability of consultant assistance. Throughout the overall process, restarting the data gathering or seeking other/additional data sources to compare, or remodeling or refining models that have already been completed will potentially further delay the workplan outlined and ultimately the June 2020 target to approve the ballot measure and specific measure language for the November 2020 ballot. Resource Impact Staff recommends continuing working with consultants for analysis of potential tax structure scenario modeling as well as consultant(s) for polling and outreach. In September the Council approved funding of $75,000 for the analysis work that has been completed to date as well as that work that was recently requested. Staff expects consulting services of an additional $175,000 for polling and outreach services. No funding for this additional consultant assistance is currently budgeted, therefore, it is anticipated that staff will bring forward both funding requests and the contracts for approval including requests for exemptions from solicitation in order to meet the above timeline. The City has most recently completed work associated with revenue ballot measures in 2018 for Measure E (increase in Transient Occupancy Tax rate) as well as 2016 for a potential business tax measure. Staff will work to leverage this prior work to the extent possible including consultant knowhow to ease the onboard and accomplish the proposed timing. City of Palo Alto Page 5 Policy Implications This recommendation aligns with existing City policy and City Council direction as part of the 2019 Fiscal Sustainability Workplan. Environmental Review This report is not a project for the purposes of the California Environmental Quality Act (CEQA). Environmental review is not required. . Attachments: • Attachment A: 09-16-2019 City Council DRAFT Action Minutes • Attachment B: Abbreviated Election Calendar - November 2020 CITY OF PALO ALTO CITY COUNCIL DRAFT ACTION MINUTES Page 1 of 6 Special Meeting September 16, 2019 The City Council of the City of Palo Alto met on this date in the Council Chambers at 5:05 P.M. Present: Cormack, DuBois, Filseth, Fine; Kniss arrived at 5:13 P.M., Kou; Tanaka participating remotely arrived at 5:13 P.M. Absent: Study Session 1.Study Session With the City's Federal Lobbyist Related to Federal Legislation. NO ACTION TAKEN Closed Session 2.CONFERENCE WITH CITY ATTORNEY-EXISTING LITIGATION Santa Clara County Superior Court Case No. 18CV328469 (One Case, as Defendant)–Jay Greer v. City of Palo Alto Authority: Government Code Section 54956.9(d)(1). MOTION: Council Member Cormack moved, seconded by Vice Mayor Fine to go into Closed Session. MOTION PASSED: 7-0 Council went into Closed Session at 5:59 P.M. Council returned from Closed Session at 6:25 P.M. Mayor Filseth announced no reportable action. Consent Calendar Council Member Kou registered no votes on Agenda Item Numbers 4 and 6. MOTION: Council Member Cormack moved, seconded by Mayor Filseth to approve Agenda Item Numbers 3-6. ATTACHMENT A DRAFT ACTION MINUTES Page 2 of 6 City Council Meeting Draft Action Minutes: 09/16/2019 3. Approval of Contract Number C20174826 With Monterey Mechanical Co. in an Amount Not-to-Exceed $450,000 to Provide On-call Emergency and Critical Construction Services at the Regional Water Quality Control Plant, Wastewater Treatment Fund Capital Improvement Program Project WQ-19002. 4. Approval of a Funding Agreement With the Santa Clara Valley Transportation Authority (VTA) for 2016 Measure B Local Streets and Roads Program Funding. 5. Approval of Contract Number S19175846 With WRA, Inc. in an Amount Not-to-Exceed $93,237 to Conduct a Matadero Creek Study for the North Ventura Coordinated Area Plan (NVCAP). 6. Vote to Endorse the Slate of Candidates for the Peninsula Division’s Executive Committee for 2018-19 and Direct the City Clerk to Forward to Seth Miller, the Regional Public Affairs Manager for the Peninsula Division, League of California Cities the Completed Ballot for the City of Palo Alto. MOTION PASSED FOR AGENDA ITEM NUMBER 3, 5: 7-0 MOTION PASSED FOR AGENDA ITEM NUMBER 4: 6-1 Kou no MOTION PASSED FOR AGENDA ITEM NUMBER 6: 6-1 Kou no MOTION: Council Member Kniss moved, seconded by Council Member Cormack to move Agenda Item Number 10 forward to be heard at this time. MOTION PASSED: 7-0 10. Designation of Voting Delegate and Alternate for the League of California Cities Annual 2019 Conference, to be Held October 16-18, 2019 in Long Beach, CA. MOTION: Council Member Kniss moved, seconded by Vice Mayor Fine to appoint Lydia Kou as a Voting Delegate and Council Member Kniss as an alternate for the League of California Cities Annual 2019 Conference. MOTION PASSED: 7-0 Action Items 7. Staff and Utilities Advisory Commission Recommends That the City Council Adopt a Resolution 9858 Entitled, “Resolution of the Council of DRAFT ACTION MINUTES Page 3 of 6 City Council Meeting Draft Action Minutes: 09/16/2019 the City of Palo Alto Amending Rule and Regulation 20 to Allow Neighborhood Self-funding of Certain Subsurface Equipment.” MOTION: Vice Mayor Fine moved, seconded by Mayor Filseth to adopt a Resolution amending Utility Rule and Regulation 20 to allow Neighborhoods to Self-Fund Certain Subsurface Projects. INCORPORATED INTO THE MOTION WITH THE CONSENT OF THE MAKER AND SECONDER to direct Staff to return to Council with an overview of the City’s underground utilities policy related to cables and transformers. INCORPORATED INTO THE MOTION WITH THE CONSENT OF THE MAKER AND SECONDER to direct Staff to include in the Rules and Regulations efforts to camouflage cables and transformers. SUBSTITUTE MOTION: Council Member Kou moved, seconded by Council Member XX to postpone adoption of the Resolution and direct Staff to return to Council after communicating the new policy to residents. SUBSTITUTE MOTION FAILED DUE TO THE LACK OF A SECOND MOTION AS AMENDED: Vice Mayor Fine moved, seconded by Mayor Filseth to: A. Adopt a Resolution amending Utility Rule and Regulation 20 to allow Neighborhoods to Self-Fund Certain Subsurface Projects; B. Direct Staff to return to Council with an overview of the City’s underground utilities policy related to cables and transformers; and C. Direct Staff to include in the Rules and Regulations efforts to camouflage cables and transformers. MOTION AS AMENDED PASSED: 6-1 Kou no Council took a break at 8:51 P.M. and returned at 9:05 P.M. 8. Evaluation and Discussion of Potential Revenue Generating Ballot Measures and Confirmation of Finance Committee Recommended Parameters for Tax Structure and Further Analysis; and Approval of a Budget Amendment in the General Fund. MOTION: Mayor Filseth moved, seconded by Council Member Kniss to continue Agenda Item Number 9, “Caltrain Business Plan - Direction to Staff Regarding…” to September 23, 2019. DRAFT ACTION MINUTES Page 4 of 6 City Council Meeting Draft Action Minutes: 09/16/2019 MOTION PASSED: 7-0 MOTION: Council Member DuBois moved, seconded by Council Member Kou to: A. Direct Staff to continue work regarding a potential revenue generating ballot measure with the following parameters: a. Consider a general business tax measure focused on head count or square footage as the units of measure; b. Consider a parcel tax measure focused on square footage as the unit of measure; c. Potential revenue proceeds allocations to transportation and/or affordable housing shall be determined at a later date and informed by polling; d. Continue further refined analysis on potential exemptions and tiered tax rate structures with the following guidance: maintaining estimated revenue generation between 1 and 6 percent of General Fund revenues, focus on implications regarding retail, restaurants, hospitality, and medical industries, and keeping potential tax structures simple and modern minimizing exemptions; e. Continue to review any potential ballot measures as either a general tax (with nonbinding advisory language on intended use of funds) or a special tax measure; f. Consider a parcel tax or General Obligation (GO) Bond for unfunded infrastructure projects at a later date; g. Discuss next steps including continued stakeholder engagement and potential polling; h. Do additional analysis and research, benchmarking against San Francisco and East Palo Alto using an average tax revenue per working metric; and i. Develop a round of polling to test the type of taxation, levels of taxation, a phase in period and tiering based on type of business; a) Test payroll, headcount, and square footage taxes; and DRAFT ACTION MINUTES Page 5 of 6 City Council Meeting Draft Action Minutes: 09/16/2019 b) Remove range of 1 - 6 % and test a broader range up to 50% of SF average tax per employee B. Amend the Fiscal Year 2020 Budget Appropriation Ordinance for the General Fund by: a. Increasing the Administrative Services Department appropriation for contractual services in the amount of $75,000; and b. Decreasing the Budget Stabilization Reserve in the amount of $75,000. INCORPORATED INTO THE MOTION WITH THE CONSENT OF THE MAKER AND SECONDER to amend Part A. h. to state “…including benchmarking against San Francisco and East Palo Alto’s average tax revenue per worker metric…” INCORPORATED INTO THE MOTION WITH THE CONSENT OF THE MAKER AND SECONDER to amend Part A. g. to state “Discuss next steps including continued stakeholder engagement with multiple business types.” INCORPORATED INTO THE MOTION WITH THE CONSENT OF THE MAKER AND SECONDER to remove Part A. i. b). INCORPORATED INTO THE MOTION WITH THE CONSENT OF THE MAKER AND SECONDER to amend Part A. d. to state “…estimated revenue generation between 1 and 10 percent…” INCORPORATED INTO THE MOTION WITH THE CONSENT OF THE MAKER AND SECONDER to amend Part A. h. to state “Direct Staff to get an information sheet on San Francisco and East Palo Alto’s various business taxes.” MOTION AS AMENDED RESTATED: Council Member DuBois moved, seconded by Council Member Kou to: A. Direct Staff to continue work regarding a potential revenue generating ballot measure with the following parameters: a. Consider a general business tax measure focused on head count or square footage as the units of measure; b. Consider a parcel tax measure focused on square footage as the unit of measure; DRAFT ACTION MINUTES Page 6 of 6 City Council Meeting Draft Action Minutes: 09/16/2019 c. Potential revenue proceeds allocations to transportation and/or affordable housing shall be determined at a later date and informed by polling; d. Continue further refined analysis on potential exemptions and tiered tax rate structures with the following guidance: maintaining estimated revenue generation between 1 and 10 percent of General Fund revenues, focus on implications regarding retail, restaurants, hospitality, and medical industries, and keeping potential tax structures simple and modern minimizing exemptions; e. Continue to review any potential ballot measures as either a general tax (with nonbinding advisory language on intended use of funds) or a special tax measure; f. Consider a parcel tax or General Obligation (GO) Bond for unfunded infrastructure projects at a later date; g. Discuss next steps including continued stakeholder engagement with multiple business types; h. Direct Staff to get an information sheet on San Francisco and East Palo Alto’s various business taxes; and i. Develop a round of polling to test the type of taxation, levels of taxation, a phase in period and tiering based on type of business; a) Test payroll, headcount, and square footage taxes B. Amend the Fiscal Year 2020 Budget Appropriation Ordinance for the General Fund by: a. Increasing the Administrative Services Department appropriation for contractual services in the amount of $75,000; and b. Decreasing the Budget Stabilization Reserve in the amount of $75,000. MOTION AS AMENDED PASSED: 6-1 Tanaka no 9. Caltrain Business Plan - Direction to Staff Regarding Comments on the Draft Long Range Service Vision. Adjournment: The meeting was adjourned at 11:49 P.M. Abbreviated Presidential General Election Calendar November 3, 2020 Santa Clara County Revised 06/11/19 DATES ACTIVITIES / DOCUMENTS July 1, 2020 (E – 125) DUE DATE FOR RESOLUTIONS FOR GOVERNING BOARD ELECTIONS Deadline for jurisdictions to submit resolutions for a governing board election. July 13, 2020 (E – 113) NOMINATION PERIOD OPENS First day candidates may pick up nomination documents either at the district office or at the Office of the Registrar of Voters. August 5, 2020 – November 3, 2020 (E – 90 to E) CONTRIBUTION/INDEPENDENT EXPENDITURES Sums of $1000 or more to/from a single source must be reported within 24 hours. The Independent Expenditure report is required only for committees (not candidate controlled) that make independent expenditures totaling $1,000 or more to support or oppose a single candidate or a single ballot measure. August 7, 2020 (E – 88) NOMINATION PERIOD CLOSES* Deadline to file (in the Office of the Registrar of Voters only) all required nomination documents. DUE DATE FOR MEASURE RESOLUTIONS AND TAX RATE STATEMENTS* Last day for jurisdictions to file a resolution calling for a measure election, and if applicable, tax rate statements. August 8, 2020 – August 12, 2020 (E – 87 to E – 83) EXTENSION PERIOD* If an incumbent fails to file a Declaration of Candidacy by August 7, 2020 for his or her office, there will be a five calendar-day extension during which any candidate, other than the incumbent, may file or withdraw from said office. August 11, 2020 (E – 84) DUE DATE FOR ARGUMENTS* Deadline set by the Registrar of Voters for submitting arguments in favor of and against a measure. August 13, 2020 (E – 82) RANDOMIZED ALPHABET DRAWING This day the Secretary of State and the local elections official will conduct a drawing of letters of the alphabet to determine the order in which candidates appear on the ballot. August 18, 2020 (E – 77) DUE DATE FOR REBUTTALS AND IMPARTIAL ANALYSES* Deadline set by the Registrar of Voters for submitting rebuttals to arguments in favor of and against and the impartial analysis. ATTACHMENT B Abbreviated Presidential General Election Calendar November 3, 2020 Santa Clara County Revised 06/11/19 DATES ACTIVITIES / DOCUMENTS September 7, 2020 – October 20, 2020 (E – 57 to E – 14) WRITE-IN CANDIDACY OPENS AND CLOSES Time frame for write-in candidates to obtain and file nomination documents in the Office of the Registrar of Voters. September 24, 2020 (E – 40) F.P.P.C. 1st PRE-ELECTION STATEMENT DUE Deadline for financial disclosure report Form 460 covering the period of 7/1/20** to 9/19/20. October 5, 2020 (E – 29) FIRST DAY FOR MAILING OF VOTE BY MAIL BALLOTS First day of mailing of Vote by Mail ballots. October 19, 2020 (E – 15) LAST DAY TO REGISTER TO VOTE FOR NOVEMBER ELECTION Deadline to register to be eligible to vote in the November 3, 2020 election. October 22, 2020 (E – 12) F.P.P.C. 2nd PRE-ELECTION STATEMENT DUE Deadline for financial disclosure report Form 460 covering the period of 9/20/20** to 10/17/20. October 27, 2020 (E – 7) LAST DAY TO REQUEST VOTE BY MAIL BALLOT BY MAIL Deadline to submit a request for a Vote by Mail ballot to be mailed to voter. NOVEMBER 3, 2020 (E) ELECTION DAY Voter Centers are open from 7:00 a.m. to 8:00 p.m. December 3, 2020 (E + 30) OFFICIAL CANVASS OF VOTE Registrar of Voters to certify election results by December 3, 2020. This calendar may not contain all of a candidate’s or district’s filing requirements. The Office of the Registrar of Voters is not open for filings on Saturday, Sunday or holidays. * Refer to California Elections Code §§9190, 9295 and 13313 for details of public examination periods and writ of mandate. ** The period covered by any statement begins on the day after the closing date of the last statement filed, OR January 1st, if no previous statement has been filed. FINANCE COMMITTEE MEETING #1 _10/1/2019__ [X] Placed Before Meeting [ ] Received at Meeting City of Palo Alto M E M O R A N D U M TO:Finance Committee DATE: October 1, 2019 SUBJECT: Approve Revised Workplan to Address the City Council Direction for Further Consideration of a Ballot Measure – Polling Results from 2016 and 2018 (CMR ID # 10712) The above referenced staff report outlines a revised workplan for a potential revenue generating ballot measure. The revised workplan includes directing staff to engage with polling and outreach consultants to develop and implement a polling and outreach strategy. The work plan assumes that polling and outreach will begin later this month and continue through Spring 2020 as needed. The staff report references the most recently completed polling executed in 2016 and 2018. Attached to this report are excerpts from the staff reports that previously transmitted the results of these polls. The 2016 poll focused on a transportation tax measure while the 2018 initial round of polling focused on voter views on infrastructure funding. Below are the links to the full reports for the most recent three polls completed by the city and attached are the specific results from the first two: 2016 Polling CMR #7118: Funding Transportation Improvements – Key Findings from a Citywide Voter Survey April 14­20, 2016 www.cityofpaloalto.org/civicax/filebank/documents/53000 2018 Polling (initial) CMR #9107: Palo Alto Voter Views on Infrastructure Funding – Key Findings of a Survey of Palo Alto Voters Conducted March 23­April 2, 2018 www.cityofpaloalto.org/civicax/filebank/documents/64561 2018 Polling (refined polling) CMR #9322: Palo Alto Voter of Potential Ballot Measures – Key Findings of a Survey of Palo Alto Voters Conducted May 12­23, 2018 www.cityofpaloalto.org/civicax/filebank/documents/65319 1 Key Findings from a Citywide Voter Survey Conducted April 14-20, 2016 1 3 2 3Q8. Split Sample I'd like to read you some problems facing the City of Palo Alto that other people have mentioned. Please tell me whether you think it is an extremely serious problem, a very serious problem, somewhat serious problem, or a not too serious problem in Palo Alto. 4 4 Q8. I'd like to read you some problems facing the City of Palo Alto that other people have mentioned. Please tell me whether youthink it is an extremely serious problem, a very serious problem, somewhat serious problem, or a not too serious problem in PaloAlto. Split Sample 5Q1. How would you rate the overall job being done by Palo Alto city government in providing services to the City’s residents? 5 6Q2. I am going to read you a list of specific aspects of the City of Palo Alto’s work in managing City government. Please tell me whether you generally approve or disapprove of the job the City is doing in that area. 7 Q2. I am going to read you a list of specific aspects of the City of Palo Alto’s work in managing City government. Please tell mewhether you generally approve or disapprove of the job the City is doing in that area. 6 8Q3. How would you rate the City of Palo Alto’s need for additional funding? 9 7 10Q4. Do you think you would vote “yes” in favor of this measure or “no” to oppose it? 11Q5. Do you think you would vote yes or no on such a measure? 8 12Q6. In that case, do you think you would vote yes or no on such a measure? 13 Mechanism Vote by Party and Ethnicity Q6. In that case, do you think you would vote yes or no on such a measure? 9 14 Mechanism Vote by Gender and Age Q6. In that case, do you think you would vote yes or no on such a measure? 15 Mechanism Vote by Household Income Q6. In that case, do you think you would vote yes or no on such a measure? 10 16 Mechanism Vote by City’s Perceived Need for Funding Q6. In that case, do you think you would vote yes or no on such a measure? 17 11 18Q5/Q6/Q11/Q12. In that case, do you think you would vote yes or no on such a measure? 19 disproportionatelydisproportionately 12 20 42% of the Electorate 42% of the Electorate 16% of the Electorate 21 Q10. Here are some statements we have heard from various people who support the potential transportation measure we have been discussing. Please tell me whether you find it very convincing, somewhat convincing, or not convincing as a reason to voteyes on the measure. 13 22 Q10. Here are some statements we have heard from various people who support the potential transportation measure we have been discussing. Please tell me whether you find it very convincing, somewhat convincing, or not convincing as a reason to voteyes on the measure. (Very/Somewhat Convincing) 23 Q12. Do you think you would vote yes or no on the potential measure that would have medium and large Palo Alto businesses playa flat annual tax for each employee they have in the City, to fund transportation and parking improvements? 14 24 Q11/Q12. Do you think you would vote yes or no on the potential measure that would have medium and large Palo Alto businessesplay a flat annual tax for each employee they have in the City, to fund transportation and parking improvements? 25 15 26 Q7 a/b/f/g. I am going to read you a list of some specific elements that could be included in such a potential measure. Please tellme whether including that provision would make you more likely or less likely to vote for the measure. 27 Q7 a/b/f/g. I am going to read you a list of some specific elements that could be included in such a potential measure. Please tellme whether including that provision would make you more likely or less likely to vote for the measure. (Total More Likely) 16 28 Q7 c/d/e. I am going to read you a list of some specific elements that could be included in such a potential measure. Please tell me whether including that provision would make you more likely or less likely to vote for the measure. 29 Q7 c/d/e. I am going to read you a list of some specific elements that could be included in such a potential measure. Please tell me whether including that provision would make you more likely or less likely to vote for the measure. (Total More Likely) 17 30 Q9. I am going to read you a list of ways in which funds generated by this measure could be spent. Please tell me how importanteach item is to you personally: extremely important, very important, somewhat important, or not too important. 31 Q9. I am going to read you a list of ways in which funds generated by this measure could be spent. Please tell me how importanteach item is to you personally: extremely important, very important, somewhat important, or not too important. 18 32 33 19 34 1999 Harrison St., Suite 2020 Oakland, CA 94612 Phone (510) 451-9521 Fax (510) 451-0384 20 Survey Conducted June 11-14, 2016 1 21 2Q1. Would you say that things in Palo Alto are generally headed in the right direction, or do you feel that things are pretty seriously off on the wrong track? 3 22 4Q3. If the election were held today, do you think you would vote “yes” in favor of this measure, or “no” to oppose it? 5Q5. Having heard more about it, do you think you would vote yes or no on such a measure? 23 6Q5. Having heard more about it, do you think you would vote yes or no on such a measure? Having heard more about it, do you think you would vote yes or no on such a measure? 7 Which of the following statements comes closer to your opinion: Q7. 24 8 9Q3, Q9 & Q11. If the election were held today, do you think you would vote “yes” in favor of this measure, or “no” to oppose it? 25 10 Q8. Here are some statements we have heard from various people who support the potential transportation measure we have been discussing. Please tell me whether you find it very convincing, somewhat convincing, or not convincing as a reason to vote yesonthe measure. *Split Sample, **Split Sample B 11 Q8. Here are some statements we have heard from various people who support the potential transportation measure we have been discussing. Please tell me whether you find it very convincing, somewhat convincing, or not convincing as a reason to vote yesonthe measure. *Split Sample 26 12 Q8. Here are some statements we have heard from various people who support the potential transportation measure we have been discussing. Please tell me whether you find it very convincing, somewhat convincing, or not convincing as a reason to vote yes onthe measure. *Split Sample, **Split Sample B 13 Q10. Here are some statements we have heard from various people who oppose the potential transportation measure we have been discussing. Please tell me whether you find it very convincing, somewhat convincing, or not convincing as a reason to vote no onthe measure. 27 14 Q10. Here are some statements we have heard from various people who oppose the potential transportation measure we havebeen discussing. Please tell me whether you find it very convincing, somewhat convincing, or not convincing as a reason to votenoon the measure. 15 28 16 Q13. Some people say that a per-employee tax on businesses isn’t the right way to fund traffic and parking improvements. Next Iwill read some alternative funding sources that could be used to address traffic and parking problems in Palo Alto. Please tellmewhether you would you vote yes to support it, or no to oppose it. 17Q5. Likely 2018 Voters, n=282 29 18 19Q2. 30 20Q2 & Q12. 21 31 22 1999 Harrison St., Suite 2020 Oakland, CA 94612 Phone (510) 451-9521 Fax (510) 451-0384 32 Small Business Survey Response Summary (10 Employees or Fewer) The Palo Alto City Council is considering a traffic congestion relief tax on businesses to fund  local transportation and parking improvements. The proposal currently under discussion would  exempt businesses and non­profits with ten employees or fewer and provide a discounted rate  for businesses with 50 or fewer employees. Please answer the following questions in order to  help inform upcoming decisions by the Palo Alto City Council regarding a potential ballot  measure to provide local funding for traffic congestion relief, parking and transportation  improvements.  Will addressing traffic and parking problems help Palo Alto business attract and retain employees and customers? Yes: 76 (82.6%)  No: 16 (17.4%) Other Response: It's a start  Making it harder to park downtown (like you're already doing now) is making it very  hard for small business to attract and retain employees.  Only if problems are in fact alleviated. Merely addressing problems is nothing more than  a preliminary step.  Only if existing congested conditions and lack of parking can be improved and if new  development completely mitigates any parking requirement.  Make developers supply parking.  I wasn't aware there was parking issues in my area  Is it fair for businesses to contribute funding for local transportation solutions by paying a business tax similar to those paid by businesses in neighboring cities? Yes: 50 (58.1%)  No: 36 (41.9%) Other Responses: I am not familiar with taxes in other cities so I can't answer the question.  Small businesses are already paying enough taxes. Don't penalize us for providing jobs  or small mom and pop stores will not want to do business in Palo Alto. You should be  encouraging businesses like this, not punishing them.  It depends on what the "transportation solutions" are and on who else will be  "contributing." Also depends on whether businesses in neighboring cities "contribute"  funding for similar "transportation solutions" in those cities. To the extent that local  residents and non­profits benefit, they should "contribute" as well and should not get a  free ride on the backs of local for­profit businesses.  No you will only waste any tax  33 It depends on where they are located. It seems that those most impacted (i.e.  downtown) that will benefit should contribute. Our business is by the airport with  plenty of parking and little traffic in the immediate area. Also I don't think the same  issue apply to business e.g. on Fabian Way in Palo Alto.  Don't you already receive taxes and revenues from the businesses here?  I don't know if the taxes in neighboring cities are fair. The question seems like an  attempt to shift responsibility. I would not vote for it without some credible, non­BS  justification other than "other cities do it".  I don't have enough information  Business should pay the ENTIRE amount­­they're the only ones benefitting from  destroying Palo Alto's charm.  Perhaps for bigger business, but not for a part time small business like myself.  Depends on the tax  Make developers supply a fair share of parking  Is a tax based on the number of employees a fair way to ensure the cost scales with the number of employees from a business utilizing roads, transit and parking in Palo Alto? Yes: 61 (71.8%)  No: 24 (28.2%) Other Responses: Employees & Business Sales  Might want to take sales, Profit or wage levels of employees into account  Tax should be a sales tax since all will benefit  Employees who take transit, walk, or ride bikes use a lot less resources. There should be  a tax credit for businesses where a large portion of employees do these things instead   of driving.  No, because that discourages businesses from providing more jobs to more people.  Tax should based on how much a business gross per year.  This seems unfair to businesses having night shifts, part­time employees and  telecommuters. A more accurate measure might be the number of employees who  arrive at a business location between, say, 8:00 top 10:00 am and leave between, say,  4:00 to 6:30 pm. As well, it seems unfair to count part­time employees the same as   full­time, especially in the case of part­time employees working less than all of the five  business days in a week.  It's reasonable, although a business with a warehouse might have few employees but  take up a lot of space and have a lot of trucks coming and going. Another method might  be based on square footage occupied/leased.  No because it does nothing to reduce the existing congestion.  The number of employees, by itself, seems like a crude measure of the parking/traffic. A  training company, for example, may have just a few employees, but hold classes with  he employees. Consulting  34 companies, on the other hand, may generate almost no traffic. A law firm may have very  little traffic from clients. I have a sole proprietorship. Most of my work is paperwork  done from my home office. I average about 15 hours per week in the office and about 4  2­hour meetings with 2 clients for a total of about 30 parking­hours per week.  I don't have enough information  Doing a tax will discourage business formation  Less # of Emp. In transit Progs  Number of employees is good, but any fee should have reductions for employees that  telecommute, are part­timers or drive into the city at non­congestion times/days. You  should also consider in the costing the extent to which the business offers and  employees use carpooling benefits and mass transit coupons.  You gave developers defferent. Change your policy. Make developers pay the full tax  Does knowing that small businesses would be exempt from the cost make you more favorable to this proposal? Yes: 78 (81.3%)  No: 18 (18.8%) Other Response:  It doesn't look like small businesses are exempt. We are a very small business but  because our employees are part time there will be more than 10 employees (but some  might only be working 10 hours per week!)  ployees, then probably not. If the  purpose of exempting or reducing the burden on small businesses is to allow them to  survive or to encourage startups, then profit and time in business should also be taken  into account.  The tax should be placed on city of PA utilities, so everyone pays something  Have real estate developers pay the cost of their rape of Palo Alto  As long as wealthy developers are hammered by the tax  You should also include Small Medical Offices the parking restrictions hurt access   to care.  It depends on how small business is defined.  What should be the highest priorities for the use of funds from the proposed measure? Upgrade traffic signals, intersections and streets to improve traffic flow: 28 (39.4%)  Implement innovative transportation demand management strategies and policies to reduce traffic at peak hours and make more efficient use of existing parking:  22 (31.0%)  Associations (TMAs) that help businesses and their employees solve transportation and parking problems by planning efficient commutes, identifying carpool opportunities and link commuters to shuttles and public transportation options in 35 order reduce traffic and parking as a barrier to employee satisfaction and retention: 18 (25.4%)  Expand local shuttle service to reduce the number of cars on the road: 3 (4.2%)  Other Responses:  Make it more expensive to drive/park. (e.g. Increase the gas tax, big time). It shouldn't  be so cheap to drive! Fund bicycle lanes. Subsidize bikers. Improve Bay Area wide public  transport. Local solutions can only go so far when we have most of our employees  coming from out of the city.  More parking structures  Provide useful and meaningful public transportation.  Increase # of parking spaces available  Build more parking garages and fix signals  The problem is a regional one, not a city one. Organize the region to build an extensive  subway train system for the whole valley.  Oppose funding these initiatives  Create more parking structures  Increase Parking Structures  Build garages where you have only lots right now. Also when I tried to help out by taking  my motorcycle to work and park it next to the electrical box on the High Street Parking  lot, which is basically an unused half space I got ticketed. So much for no good deed  goes unpunished.  Build new parking facilities, widen streets, fund a long tern agreement with Caltrans for  signal light coordination.  Enforce the parking limit and draw parking space lines so car use one space not two   or more  Build a five story parking building unlimited hours and free for employee  We need more parking structures for employees without the high cost of permits. The  majority of people that work in a Palo Alto cannot afford to live in Palo Alto.  I ser city allows commercial buildings to be built and high­density businesses (employees +  customers) to exist without regard to, especially, parking, everything else is a bandaid.  I need more information  Repair the badly crumbled El Camino  Stop shrinking our streets thru road diets.  Add pay to park parking garages  Reduce the number and size of businesses approved to operate within the Palo Alto   city limits.  Parking structure and parking meters  Before I can make a decision on these options, I would recommend looking at the  existing data to determine which have been most effective in this community and other  like communities.  Put pressure on CalTrain to allow dogs on the train. I would be taking the train to work if  I could have my dog on the train.  36 More tickets for red light runners, rolling through stop signs & the speedway called  Alma. That should bring in money for traffic issues  Zone for greater density with limited parking. People will not rent there unless they  work near by or plan to use alternative means of transportation  By assuming all people can take public transportation if they only try harder is not a very  inclusive position. For example not providing an exemption to small healthcare facilities  forces patients to have reduced assess to care. Health workers in small offices have  already started to leave the area and it is harder now to hire. Yes permits are available  at a reduced fee, but if they have to walk 4+ blocks because they got hired after the  logical zone is full. Why provide their health services to the people of Palo Alto?  Especially if  of a certain age or have a minor disability, now the potential  employment pool is even smaller. By giving small healthcare workers exemptions it  would benefit the healthcare to the residence of Palo Alto.  Build more parking garages.  Should the rate structure adjust with changes in the local Consumer Price Index (CPI) to account for inflation and protect the purchasing power of transportation funding? Yes: 57 (67.1%)  No: 28 (32.9%) Other Responses:  Not sure, small businesses are earning pennies  Not sure what this means, but you should not be penalizing the people who are  providing jobs and services to the community.  Probably not. Providing for this kind of rate adjustment implies that this will be a   long­lived tax. It shouldn't be. Determine what needs to be done, what it will cost, and  obtain enough funding for it. Don't enact another permanent tax. If you need long­term  funding, issue municipal bonds.  I am against a tax period.  This is a good idea in theory, but in practice it simply allows governments to set it and  forget it. I think taxes need to be re­justified periodically.  Index to transport costs only  What are you funding and what are the costs  If this is for large corporations then the CPI is too low if it's a national standard.  Does your business currently contribute to a Transportation Management Association (TMA)? Yes: 2 (2%)  No: 96 (98%) If yes, which one? Yes, we pay for downtown parking permits  37 Not sure  If yes, if Palo Alto businesses paid a transportation tax, would you continue voluntarily contributing to a TMA? Yes: 5 (9.8%)  No: 46 (90.2%) Other comments: One person business with large pro bono work  Palo Alto is already too expensive for businesses. We're moving to Redwood City.  Creating additional parking is a short­term solution. Taxing businesses is well  intentioned, but misguided. Really, Bay Area public transportation sucks and driving is  too easy. The solution is not making driving and parking easier.  It is naive to think that improving shuttle services will help the congestion problem.  Most people in this area are not interested in shuttle services. The money would be  better spent building parking structures. From a personal standpoint, please make  Kipling a one way street like it use to be. I've never seen so many accidents and near­ accidents as I have on this narrow little street.  If the planning commission and city council would stop making exceptions for  developers' project submittals we would have a less severe problem. Every single  developer who submits a proposal is asking for an exception to the required parking.  Stop granting exceptions. Enforce the rules.  When school is out due to a winter break or for the summer have you noticed the  amount of traffic is greatly reduced? City councils have contributed to this problem not  keeping up with parking and downsizing the roads available for vehicles. Now you want  to blame and put the burden on the business community. Our city government has no  clue on what to do and seem to make the matter worse when they try.  N/A  Please, please start planning and then building a rapid subway train system for the  whole valley. Light rail and buses that average around 15 miles per hour are a waste of  resources. Visit New York City, London, Paris, etc. to see how it is done.  When the business registry went into effect it was stated that it would not become a  tax. Now City Hall is proposing to turn it into a tax no doubt to fund "necessary" staff to  administer it. WE DO NOT NEED MORE ADMINISTRATION TO RUN A PROGRAM LIKE  THIS. What's next? We are in a part of Palo Alto that does not have parking and  congestion problems; I object to funding something that is a downtown problem.  Alternate suggestion: reduce the monthly fees on the paid permit parking in the  downtown garages to something more in line with what Menlo Park charges and you  will likely get more people to pay for those permits plus eliminate all those unused  vacant spaces. The monthly fee being charged is too high which is why everyone tries to  find free all day parking in the side neighborhoods.  In general, I don't think building more traffic infrastructure for cars is a good thing.  There is already plenty of space in Palo Alto wasted on parking lots. What's needed is to  38 encourage more people to avoid driving single occupant cars on a daily basis. If the tax  can be used to encourage that, it will have a bigger impact. Collecting a tax and using  the money to add more parking garages or widening roads will just contribute to sprawl  and make the problem worse.  It's easy to dump every problem on the business community, but we are the ones who  are providing jobs (as well as the most delicious ice cream) to people in the community.  Stores are closing in the downtown area because of exorbitant rents, high wages, and  taxes. This plan will only hurt businesses more.  The main traffic problems can be greatly alleviated by upgrading roadways and traffic  signals. This would benefit not just for­profit businesses, but residents and non­profit  businesses (including PAMF, which accounts for a substantial amount of vehicular  traffic). Taxing for­profit businesses may have political appeal, but ultimately it is the  customers of those businesses who wind up paying the tax.  build a parking structure ­ and provide a better shuttle service to the business districts.  Charging employees to park is ridiculous  It would behoove Palo Alto to keep larger employers and service/retail hubs  geographically distinct. The former generate rush­hour traffic, requiring major roads.  The latter draw lighter traffic more continuously during the day, and have positive  instead of negative implications for surrounding residential areas. Careful zoning and  review of building proposals (e.g. at 550 Hamilton Ave) are critical to protecting Palo  Alto's human friendly residential and small business atmosphere from overwhelming  peak traffic.  We are a very small business, just seven employees.  It seems I would be paying twice for the same thing  The majority of the City Council has continued to approve developer oriented proposals  which have not carried their fair share for real improvements­­parking facilities,  widening of streets and turn lanes. TDM programs or paper mitigation have not proven  to be effective and developers themselves have said so. True mitigation of new  development has to occur before new financing is sought. The word "sustainability" is  used a lot without implementation. Whether it is parking, water or affordable housing,  new development should mitigate its impact. Neighborhood conclutation should be  required early in the process. The appearance is that nearly all­new development is  driven by the City Manager and controlling land use documents are not followed.  As long as parking improves within a reasonable time  I doubt that the parking problem will ever be solved until self­driving cars eliminate the  need for parking altogether. They will also greatly improve the traffic problem.  I am a sole business, however, I know that some days my patients drive around for 15 to  20 minutes looking for parking.  This should have been addressed during the planning & development phase   of construction.  Not if I don't have to. I am local and feel it is people's responsibility to get themselves to  work. I don't like supplementing others transportation.  39 You need to give credit to businesses, which provide own parking for their employees  and customers.  Very small business ($20K/year) ­­ solo medical practice  I believe the transportation issue is directly related to the over­building issue and the  increased rental rates for businesses, which only big businesses with big labor forces   can afford.  This whole problem is a result of past city council kowtowing to big business leaders.  The city council permitted the outsized expansion of businesses within the city limits,  when it should have restricted the business population to that which would gainfully  employ the number of people who can be housed within the city limits. Having 60K+  commuters coming into the area each day is a very poor choice caused by past errors in  city judgment, and is responsible for all the current problems. Learn to not repeat   the mistakes.  We already pay the new business tax plus the downtown association fees. Another fee  is going to drive business away. Stop hitting us with new fees. Its already expensive  enough to do business here with out you driving us out with more taxes that  improve the situation. Your part of the problem not the solution.  We are a dog friendly office. Being near the train, our workers would like to take the  train to work, but Caltrain does not allow any kind of dogs other than those required  under the ADA. Caltrain should adjust the rules to be similar to BART, and allow small  dogs if they are in carriers.  As a voter, I would want to see a detailed accounting of how current funds are managed  and the qualifications of those who make decisions in this area. I have been very  surprised by some decisions made in the recent past that greatly add to our traffic  problems (e.g. the inexplicably poor planning near the intersection of Embarcadero and  El Camino; the very unattractive roundabouts that are being installed like the new one  on Cowper Street in old Palo Alto).  Survey Respondents Name Name of Business Kaloma A. Smith University AME Zion Church  JON GOVIND THE PALO ALTO INN  Irena Smith Irena Smith College Consulting  Isaac H. Winer Law Office of Isaac H. Winer  cary no name  Michael Sarrett Yogurtland  Nancy  Nancy Trueblood, MFT  xxx yyy  Samir Tuma Kila Properties  Ed Castano BlueVine  40 pat blumenthal pat blumenthal  Nick  Vino Locale  Stephen levy Ccsce  miriam joann blessing­moore md inc  Peter N. Brewer Law Ofcs. of Peter N. Brewer  david bena Church  stephen atkinson atkinson architecture  Paul Russell Hand in Hand Parenting  mimi richart nonobject  Alex Tennant Aerobie, Inc.   Edwin Oh Infrastructure Group LLC  Laurie Rohrbach Lobird  James Howard Real Artists Inc  Cindy Somasunderam Scoop Microcreamery  Sandeep OpsHub  Henry Yee Sharetea  a a  Alec Hsu Flight Ventures  Alan Nopar Nopar & Assoicates  Michael Bence Duxiana  Andrea Bogan Henderson  Anders Greenwood Anders Greenwood, Doctor of Psychology, Inc  GR Mine  Maureen Ruffell Maureen Ruffell, M.D.  Carol Field Field Architecture, Inc.  Hope Case Sacks, Ricketts & Case  G J N/A  Michael Tompert Raygun Studio  joe hedges voelker sensors, inc  William Ross Law Offices of William Ross   Carlos Carlos for Hair  Melissa Lu ELLA  Lynn Kearney Lynn J Kearney, MFT  41 JENNY G JEROME CLIKAWAY  Myrna Green Office of Myrna S. Green, Ph.D.  Babak Kahrobaie  Gate Cleaners  Michael K. Smith Michael K. Smith, Ph.D.   Alan Brauer MD Totalcare Clinic  Lori Romero True   Hugh Baras Hugh Baras, Ph.D.  Wes Christensen C. Wesley Christensen, MS  Lynn Kearney Lynn J Kearney, MFT  Demetra Paras Demetra Paras MA MFT  Roger Strom Strom Properties  marty klein marty klein & associates  Eval Gal­Oz E.U Int'l corp  Dr Eric Wu Wu Orthodontics  Padmini Schuet  Ananda Church our private P. lot is overcrowded with nonchurch  members on weekdays  Jonathan Lam ClickAway Verizon  mehrdokht  shirmohammadi Clickaway Verizon Palo Alto  Alexander Johnson  Www.nurseregistry.com, Nurse Logistics, Nurse solutions, Law Officd of  Alexander Johnson, California Catalyst LLC  Peter Wexler FATG  Jack Morton Morton & Associates  Kathy Styles Target Discovery   Anonymous Palo Alto Business choosing anonymity  Katherine Hohbach Katherine Hohbach, LMFT  L. Branden Studio Kicks  Gerd Goette Siemens Fianancial Services   Sherry Brown Sherry Brown, LMFT  Chris Macie Christopher J Macie L.Ac  Donna Dagenais Mid Peninsula Speech and Language Clinic  Alena Campagna Stoecker & Northway  Terry Walker Walker Systems  Steve McGraw Steve McGraw, Psy.D.  42 Miriam Rivera Ulu Ventures  Carol Campbell, MFT Carol Campbell, MFT  Susan Graf Susan Graf Limited  rick barry barry real estate  Dilip Sheth Sysorex  Abby Haile Abby Haile, PsyD  mo.kashefi Cielo Btq. Inc.  info PAPIE  A Singh VIP  Jon Leeb Leebco, Inc.   Audra Johnson Vertex Ventures   Jessica Nisperos Mental Research Institute  Heather Bernikoff The Special Hope Foundation  Brian S. Ackerman­Practicon Inc  Tracy Tripp Blum & Tripp CPAs  David Heinichen heinichen's Garage  Omonike Weusi­ Puryear  Primerica   Jean Kirsch  Jean P Kirsch MD  steve steve  None None  Justin Trepel Arastradero West Apartments  Danielle Computerlaw Group LLP  Hsin Yang Core Studio  Reza Riahi Palo Alto Endodontic Center  Ben Cintz Law Offices of Benjamin Cintz  Duanni Hurd StarLight CareGivers  Loy Martin Loy D. Martin Furniture  Laura Seitel Laura Seitel, Ph.D.  Serena Garcia Good Vibrations  43 Medium/Large Business Survey Response Summary (11 Employees and up) Please answer the following questions in order to help inform upcoming decisions by the Palo  Alto City Council regarding a potential ballot measure to provide local funding for traffic  congestion relief, parking and transportation improvements.  Will addressing traffic and parking problems help Palo Alto business attract and retain employees and customers? Yes: 29 (78.4%)  No: 8 (21.6%) Other Response: Only in conjunction with major improvement in public transportation  Is it fair for businesses to contribute funding for local transportation solutions by paying a business tax similar to those paid by businesses in neighboring cities? Yes: 14 (43.8%)  No: 18 (56.3%) Other Responses: Perhaps, depending on how  This is something that the downtown businesses already do. We pay an assessment for  parking garages already.  People who collect sales tax should pay  Depends on the solution  Business already contribute to taxes through both property and sales taxes  Is a tax based on the number of employees a fair way to ensure the cost scales with the number of employees from a business utilizing roads, transit and parking in Palo Alto? Yes: 16 (50%)  No: 16 (50%) Other Responses: NO if a business has 10 employees but none drive a car is it fair that they are required to  pay the same as a business with 10 employees where they all drive?  The 50% partners who collect the 9.5% sales tax should pay for   infrastructure improvement.  Only if the building that the business resides in does not provide parking  Not sure, plus all businesses will be taxed, not just ones in impacted areas. Should  revenue also be a "driver"?  Revenues  44 Should small and medium sized businesses receive an exemption or discount? Yes: 29 (78.4%)  No: 8 (21.6%) Other Response:  Businesses under 15 employees should have a lower rate than a very large company  Should small non­profit organizations receive an exemption from the cost? Yes: 25 (66.7%)  No: 12 (32.4%) Other Response:  They're already exempt from so many taxes  What should be the highest priorities for the use of funds from the proposed measure? Upgrade traffic signals, intersections and streets to improve traffic flow: 13 (46.4%)  Implement innovative transportation demand management strategies and policies to reduce traffic at peak hours and make more efficient use of existing parking: 6 (21.4%)  Expand local shuttle service to reduce the number of cars on the road: 5 (17.9%)  Provide supplemental funding to expand Pal Associations (TMAs) that help businesses and their employees solve transportation and parking problems by planning efficient commutes, identifying carpool opportunities and link commuters to shuttles and public transportation options in order reduce traffic and parking as a barrier to employee satisfaction and retention: 4 (14.3%)  Other Responses:  Build bicycle infrastructure  What about walking and cycling???  Require developers to provide sufficient parking for all new construction  No new taxes  All this should come out of sales taxes  None  Replace your people who say a school near business on a 2 lane rd will not effect   traffic flow  We need a comprehensive approach  Should the rate structure adjust with changes in the local Consumer Price Index (CPI) to account for inflation and protect the purchasing power of transportation funding? Yes: 18 (54.5%)  No: 15 (45.4%) Other Responses:  Not sure  45 No new taxes  Not sure  Does your business currently contribute to a Transportation Management Association (TMA)? Yes: 2 (5.4%)  No: 35 (94.6%) If yes, which one? National Center for Transit Research at the University of South Florida, Best Workplaces  for Commuters  If yes, if Palo Alto businesses paid a transportation tax, would you continue voluntarily contributing to a TMA? Yes: 0 (0%)  No: 12 (100%) Other comments: Our employees are most sensitive to length in time of total commute. That includes  walking, waiting for transport and or parking. Anything to reduce the over all time  getting from their home to the actual office is very welcome to us! And please, please  don't make it confusing or more hoops to jump through. Thank you for your work  making PA a premium city to work in.  Our business is across the street from the Palo Alto Airport. Every work night from 4:00  p.m. until about 6:00 p.m. we have gridlock at Bayshore and Embarcadero. The traffic is  due to cars going to the East Bay. The East Bay commuters jam the intersection so  during a light change cars going west on Embarcadero rarely get the full use of the   green light.  Traffic calming and keeping bus stops away from intersections would be very helpful for  traffic on Middlefield. The intersection of Middlefield and Colorado is dangerous and  often backed up due to busses stopping right at the intersection  Not sure  Your traffic planners do not know what they are doing especially on E. Bayshore Rd.  They need to open Laura Ln. for school traffic thru the Post Office Parking lot to allow 2  ways traffic can move for the school/post office/bridge traffic.  We are located on California Avenue and already contribute through property tax as  well as our sales taxes. If this tax were to pass, how would the city guarantee that the  funds would only go to transportation issues, building more garages, etc...  Tax should be based on all traffic generated by the business, not just employee travel ­  maybe revenues would better approximation.  Amount of traffic generated by business (e.g., retail store) should be taken into account,  not just number of employees.  46 Survey Respondents Name Name of Business Chen HCA  Name Name of Business  Ken Martin Mike's Bikes  Matt Hengehold Hengehold Motor Co.  Jeff Selzer Palo Alto Bicycles  Dan Fortner Tipalti  Franco Campilongo Terun  Lindsay Van Keuren Adaptive Insights, Inc.  Peter Licari Jack Mobile Inc. (Ozlo Inc.)  Cameron Tipalti  AnDi Irvin Aerion Technologies Corporation  Patricia Nojima Gallery House  Lee Boman Eastman   Anika Sargent Living Wisdom School of Palo Alto  Linda Winter Lodge  Not Necessary Not Necessary  Abby Wittmayer Whole Foods Market  Rigel St. Michael's Alley  Wade Smith Hammon Plating  Israel Rind Izzy's Brooklyn Bagels  Dave Stellman Palo Alto Glass  Max Silverstein Eversight  Anonymous Anonymous  SM NA  Chris Boreta Orchard Commercial  Dana PlaceIQ  Terry Boyle Children's Health Council  Ron Malouf Jazz Pharmaceuticals  Anonymous Anonymous  Jay Patel Sciton, Inc.  47 Audrey Smith CK­12 Foundation  K S Montelaro PBC  Mandy Brown Castilleja School  Scott Yeaman  Yeaman Auto Body 2025 E. Bayshore Rd. Guillaume Bienaime Zola  Michael Ekwall La Bodeguita del Medio  Maureen Breen Avenidas  Marina Remmel Communications & Power Industries LLC 48 220-5016 Key Findings of a Survey of Palo Alto Voters Conducted March 23-April 2, 2018 Palo Alto Voter Views on Infrastructure Funding 1 Methodology • 1,191 interviews with likely November 2018 voters in Palo Alto • Conducted March 23 to April 2, 2018, online and via landline and cell phones • Margin of sampling error of ±4.0% at the 95% confidence interval • Due to rounding, some percentages do not add up to 100% • Selected comparisons to 2016, 2014, 2013 and 2008 surveys 49 2 Key Findings • Voters are now divided on the City’s direction compared with 2016 – a trend common in recent months for Bay Area cities facing increasing challenges like housing costs and traffic congestion. • Majorities approve of the City’s management of infrastructure, and more approve than disapprove of its handling of budget and tax dollars. • In principle, voters support a measure to fund improvements to City infrastructure – and a solid majority is willing to pay up to $100 per household per year for such projects. • Ensuring a modern emergency response system, and repairing streets and roads, are the highest-priority projects. • Among mechanisms tested in concept, a TOT or real estate transfer tax have the most initial appeal. •Note that this poll was not designed to gauge the ultimate feasibility of a fully- developed ballot measure concept; should the City choose to move forward, future research will need to test draft ballot language and pro and con arguments. 3 Issue Context 50 4 Q1. Right Direction 61% Wrong Track 25% DK/NA 14% Right Direction 43% Wrong Track 37% DK/NA 20% 2018 2016 Would you say that things in the Palo Alto are generally headed in the right direction, or do you feel that things are pretty seriously off on the wrong track? Voters are now split on the city’s direction, reflecting a regional trend. 5 10% 18% 15% 16% 50% 56% 53% 56% 27% 19% 23% 22% 10% 5% 6% 2018 2016 2013 2008 Excellent Good Only Fair Exc./ Good Fair/ Poor 60% 37% 74% 24% 68% 29% 72% 26% Three in five say the City does an “excellent” or “good” job providing services. Q2. How would you rate the overall job being done by Palo Alto city government in providing services to the City’s residents? Would you say the City is doing an …? 51 6 21% 10% 9% 43% 37% 38% 5% 23% 16% 17% 16% 21% 13% 14% 16% Maintaining the City's infrastructure Managing the City's budget and finances Efficiently utilizing local tax dollars Strng. App.Smwt. App.DK/NA Smwt. Disapp.Strng. Disapp. Q3. Total Approve Total Disapprove 64% 31% 47% 30% 47% 36% Nearly two-thirds approve of maintenance of City infrastructure; they are more divided on budget and tax management. I am going to read you a list of specific aspects of the City of Palo Alto’s work in managing city government. Please tell me whether you generally approve or disapprove of the job the City is doing in that area. 7 Q3. I am going to read you a list of specific aspects of the City of Palo Alto’s work in managing city government. Please tell me whether you generally approve or disapprove of the job the City is doing in that area. Appraisals of the City’s work managing infrastructure and its budget have declined – as they have in many cities - but remain net positive. City Palo Alto City Government 2013 2016 2018 Maintaining the City's infrastructure 75% 75% 64% Managing the City's budget and finances 62% 64% 47% Efficiently utilizing local tax dollars 63% 67% 47% (Total Approve) 52 8 11% 35% 19% 25% 11% Q5. Split Sample 10% 36% 22% 23% 9% Great/ Some Need 46% Little/No Real Need 45% Great need Some need Little need No real need Don’t know Great/ Some Need 45% Little/No Real Need 43% Just under half see at least “some need” for funding for infrastructure. More specifically, how would you rate the City of Palo Alto’s need for additional funding to maintain and improve infrastructure: is there a great need for additional funding, some need, a little need or no real need for additional funding? 2018 2013 9 10% 31% 25% 25% 8% Q6. Split Sample 11% 43% 19% 22% 5% Great/ Some Need 54% Little/No Real Need 41% Great need Some need Little need No real need Don’t know Great/ Some Need 42% Little/No Real Need 50% About two in five see at least “some need” for more specific infrastructure improvements. More specifically, how would you rate the City of Palo Alto’s need for additional funding to maintain and improve public parks, streets, sidewalks and vital facilities like police and fire stations: is there a great need for additional funding, some need, a little need or no real need for additional funding? 2018 2013 53 10 Voter Priorities for Infrastructure Funding 11 11 “Now I would like to ask you a few questions about potential local funding measures. The City has identified between $75 million and $150 million in needed improvements to City’s streets, sidewalks, parks, public facilities and other basic infrastructure.” 11 Q7. 54 12 35% 22% 24% 26% 25% 15% 23% 22% 16% 40% 44% 39% 35% 36% 43% 31% 31% 35% 18% 29% 30% 27% 29% 37% 27% 32% 33% 6% 5% 7% 12% 10% 5% 19% 14% 16% ^Ensuring a modern and stable 911 emergency communications network Maintaining City streets and roads Fixing potholes and paving city streets ^Providing safe routes for bicyclists and pedestrians Maintaining City parks and recreation facilities ^Improving safety at Caltrain crossings ^Improving city streets to make busy intersections safer Providing adequate parking Ext. Impt.Very Impt.Smwt. Impt.Not Too Impt./DK/NA Q7. I’m going to read you some of the objectives of the infrastructure projects identified through this process. Please tell me how important each objective is to you as a resident of Palo Alto: extremely important, very important, somewhat important, or not important. ^Not Part of Split Sample Ext./Very Impt. 75% 66% 63% 61% 61% 58% 54% 53% 51% Ensuring a modern emergency communications network is important to three-quarters. ^Ensuring vital City facilities like police stations and the emergency command center are earthquake safe 13 17% 20% 14% 15% 10% 9% 32% 25% 29% 29% 29% 21% 14% 8% 8% 35% 31% 34% 32% 41% 38% 46% 32% 29% 16% 24% 22% 24% 21% 32% 37% 59% 61% ^Making sidewalks, City buildings and parks accessible for people with disabilities Funding transportation incentives that improve traffic by reducing solo driver trips Providing downtown parking ^Providing a safe crossing over Highway 101 for pedestrians and cyclists Improving parks, playgrounds and playfields for youth and adult recreation ^Providing a modern animal shelter ^Upgrading the Palo Alto Junior Museum and Zoo ^Upgrading Byxbee Park Restoring the historic Roth building Ext. Impt.Very Impt.Smwt. Impt.Not Too Impt./DK/NA Q7. I’m going to read you some of the objectives of the infrastructure projects identified through this process. Please tell me how important each objective is to you as a resident of Palo Alto: extremely important, very important, somewhat important, or not important. ^Not Part of Split Sample Ext./Very Impt. 49% 44% 44% 43% 39% 30% 17% 10% 10% Fewer are concerned with upgrading the museum, zoo, Byxbee Park, or Roth building. 55 14 Support for an Infrastructure Funding Measure 15 19% 39% 17% 18% 6% Strongly support Somewhat support Somewhat oppose Strongly oppose Don't know Many of these projects and improvements are beyond the scope of the City’s existing budget and may require additional funding through a local voter- approved bond or tax measure. Based on what you’ve heard, do you think you would support or oppose a bond or tax measure to fund some group of these projects to maintain and improve Palo Alto’s infrastructure? Total Support 59% Total Oppose 35% Q8. In principle, nearly three in five support a bond or tax measure for infrastructure upgrades. 56 16 Younger voters are slightly more supportive than those over age 50. Q8. Many of these projects and improvements are beyond the scope of the City’s existing budget and may require additional funding through a local voter-approved bond or tax measure. Based on what you’ve heard, do you think you would support or oppose a bond or tax measure to fund some group of these projects to maintain and improve Palo Alto’s infrastructure? 64% 56% 62% 59% 30% 39% 33% 33% Men Ages 18-49 Men Ages 50+ Women Ages 18-49 Women Ages 50+ Total Support Total Oppose % of Sample 15% 33% 15% 36% By Gender by Age 17 While nearly seven in ten Democrats support the idea, independents are split. Q8. Many of these projects and improvements are beyond the scope of the City’s existing budget and may require additional funding through a local voter-approved bond or tax measure. Based on what you’ve heard, do you think you would support or oppose a bond or tax measure to fund some group of these projects to maintain and improve Palo Alto’s infrastructure? 68% 49% 38% 61% 64% 51% 25% 43% 57% 35% 29% 44% Democrats Independents Republicans Asians/Pacific Islanders White Voters Voters of Color Total Support Total Oppose % of Sample 58% 27% 15% 14% 62% 30% By Party & Ethnicity 57 18 Renters are stronger backers than owners, though majorities of both support it. Q8. Many of these projects and improvements are beyond the scope of the City’s existing budget and may require additional funding through a local voter-approved bond or tax measure. Based on what you’ve heard, do you think you would support or oppose a bond or tax measure to fund some group of these projects to maintain and improve Palo Alto’s infrastructure? 63% 64% 56% 64% 56% 66% 29% 32% 38% 30% 38% 28% <$100,000 $100,000-$150,000 $150,000-$250,000 $250,000+ Homeowners Renters Total Support Total Oppose % of Sample 18% 12% 19% 28% 72% 23% By Income & Residence 19 51% 36% 23% 19% 20% 24% 18% 18% 5% 5% 5% 8% 11% 16% 14% 16% 24% 37% 43% $50 per year $100 per year $200 per year $250 per year Very Will.Smwt. Will.DK/NA Smwt. Unwill.Very Unwill. Q9. Total Willing Total Unwilling 71% 25% 61% 35% 41% 53% 38% 57% Three in five voters are willing to pay up to $100 annually for these improvements. Regardless of how the measure was structured, would your household be willing to pay ______ in additional taxes if it were dedicated to the types of Palo Alto infrastructure repairs and improvements we have been discussing? 58 20 Examining Potential Funding Mechanisms 21 27% 25% 13% 8% 34% 27% 27% 20% 5% 7% 5% 17% 16% 17% 23% 17% 25% 38% 47% Increasing the transient occupancy tax, charged to hotel and motel guests Increasing the real estate transfer tax rate, paid when a property is bought or sold Establishing a flat tax on every parcel of property in Palo Alto Increasing the sales tax Strng. Supp.Smwt. Supp.DK/NA Smwt. Opp.Strng. Opp. Q10. I am going to read you a list of several methods that might be used to raise money to fund the types of infrastructure repairs and improvements we have been discussing. Please tell me if you would support or oppose that particular way of raising new revenue for these purposes. Would you support or oppose_____? Total Supp. Total Opp. 61% 34% 53% 40% 40% 55% 27% 70% Three in five back a higher TOT, and a majority favors an RETT. 59 22 Q11. Voters then heard a pro/con exchange on a potential sales tax increase in isolation. Let me ask you about the idea of increasing the sales tax. Supporters say increasing the sales tax ensures that people who make purchases in the city, including visitors, pay a small share of the cost of maintaining city infrastructure without raising taxes on homeowners once again. Opponents say sales taxes increase the price of nearly everything we buy, which hurts the poor more than it does the rich. Our sales tax rates is already 9 percent. Having heard this, would you support or oppose increasing the sales tax as a way of raising money to repair and upgrade City infrastructure? 23 9% 17% 21% 51% 2% Q10a. I am going to read you a list of several methods that might be used to raise money to fund the types of infrastructure repairs and improvements we have been discussing. Please tell me if you would support or oppose that particular way of raising new revenue for these purposes. Would you support or oppose increasing the sales tax? Q11. Having heard this, would you support or oppose increasing the sales tax as a way of raising money to repair and upgrade City infrastructure? 8% 20% 23% 47% 2% Total Support 27% Total Oppose 70% Strongly support Somewhat support Somewhat oppose Strongly oppose Don’t know/NA Total Support 26% Total Oppose 72% This did not shift opinions – more than seven in ten still oppose a sales tax increase. After Pro/Con Initial Opinion 60 24 Q12. They also heard an exchange of messaging on a transient occupancy tax increase. Let me ask you about the idea of increasing the transient occupancy tax, charged to hotel and motel guests. Supporters say increasing the transient occupancy tax ensures that visitors to our city pay their fair share for our infrastructure while keeping costs lower for residents. Opponents say higher transient occupancy taxes will cause tourists to stay in cities outside Palo Alto, driving business out of the City, and especially hurt parents and students who visit campus. Having heard this, would you support or oppose increasing the transient occupancy tax charged to hotel and motel guests as a way of raising money to repair and upgrade City infrastructure? 25 25% 33% 19% 19% 4% Q10b. I am going to read you a list of several methods that might be used to raise money to fund the types of infrastructure repairs and improvements we have been discussing. Please tell me if you would support or oppose that particular way of raising new revenue for these purposes. Would you support or oppose Increasing the transient occupancy tax, charged to hotel and motel guests? Q12. Having heard this, would you support or oppose increasing the transient occupancy tax charged to hotel and motel guests as a way of raising money to repair and upgrade City infrastructure? 27% 34% 17% 17% 5% Total Support 61% Total Oppose 34% Strongly support Somewhat support Somewhat oppose Strongly oppose Don’t know/NA Total Support 58% Total Oppose 38% A solid majority continued to support a TOT increase after messaging. After Pro/Con Initial Opinion 61 26 Q13. Supporter and opponent rationales for a real estate transfer tax were also read. Let me ask you about the idea of raising the real estate transfer tax rate, paid when a property is bought or sold. Supporters say the it makes sense for people who buy a home in Palo Alto to contribute to the City’s infrastructure with a one-time investment when they buy the house. Opponents say the cost of housing is already outrageous, and we shouldn’t make it even more costly to buy a home in our community. Having heard this, would you support or oppose raising the real estate transfer tax rate as a way of raising money to repair and upgrade City infrastructure? 27 21% 26% 17% 32% 4% Q10c. I am going to read you a list of several methods that might be used to raise money to fund the types of infrastructure repairs and improvements we have been discussing. Please tell me if you would support or oppose that particular way of raising new revenue for these purposes. Would you support or oppose increasing the real estate transfer tax rate, paid when a property is bought or sold? Q13. Having heard this, would you support or oppose raising the real estate transfer tax rate as a way of raising money to repair and upgrade City infrastructure? 25% 27% 16% 25% 7% Total Support 53% Total Oppose 40% Strongly support Somewhat support Somewhat oppose Strongly oppose Don’t know/NA Total Support 47% Total Oppose 49% After messaging on the RETT as a funding mechanism, voters were evenly divided. After Pro/Con Initial Opinion 62 28 Q14. Voters heard reasons to vote “yes” and “no” on a flat parcel tax. Let me ask you about the idea of establishing a flat parcel tax on each piece of property. Supporters say that it is the simplest way to ensure that property owners all pay a fair share in improving the City’s infrastructure. Opponents say that this method is unfair because owners of smaller homes will be forced to pay the exact same price as owners of larger and more valuable properties. Having heard this, would you support or oppose establishing a flat parcel tax as a way of raising money to repair and upgrade City infrastructure? 29 12% 22% 22% 41% 4% Q10d. I am going to read you a list of several methods that might be used to raise money to fund the types of infrastructure repairs and improvements we have been discussing. Please tell me if you would support or oppose that particular way of raising new revenue for these purposes. Would you support or oppose Establishing a flat tax on every parcel of property in Palo Alto? Q14. Having heard this, would you support or oppose establishing a flat parcel tax as a way of raising money to repair and upgrade City infrastructure? 13% 27% 17% 38% 5% Total Support 40% Total Oppose 55% Strongly support Somewhat support Somewhat oppose Strongly oppose Don’t know/NA Total Support 34% Total Oppose 62% This increased opposition to more than three in five. After Pro/Con Initial Opinion 63 30 Conclusions 31 Conclusions • This limited test of mechanisms alone indicates that a transient occupancy tax or real-estate transfer tax present potential avenues for voter-approved revenue. – Both a TOT and RETT (without the rate of increase) begin with majority support, and retain it after a very brief exchange of messaging. – Voters in general support up to $100 per year in new taxes for infrastructure improvements and repairs. • Maintaining the emergency communications network, repairing streets and roads, and pedestrian and cyclist safety are top priorities. • Voters are increasingly pessimistic about the direction of the City, and offer middling approval ratings on the City’s work managing tax revenues and the budget. • At the same time, fewer than a majority see a need for new funding for the City generally or for infrastructure specifically. • Further research should test a 75-word ballot label, which includes the rate of increase and projects funded, as well as a fuller suite of messaging, to determine viability in a November election. 64 For more information, contact: 1999 Harrison St., Suite 2020 Oakland, CA 94612 Phone (510) 451-9521 Fax (510) 451-0384 Dave@FM3research.com Dave@FM3research com Miranda@FM3research.com Miranda@FM3research comm 65