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HomeMy WebLinkAboutStaff Report 7704 City of Palo Alto (ID # 7704) City Council Staff Report Report Type: Consent Calendar Meeting Date: 2/13/2017 City of Palo Alto Page 1 Summary Title: TMA Funding Agreement Amendment Title: Amendment of an Existing Funding Agreement With the Palo Alto Transportation Management Association (PATMA) and Silicon Valley Community Foundation Extending the Term of the Agreement for Two Years (to December 2018) and Providing $100,000 per Year From: City Manager Lead Department: Planning and Community Environment Recommendation: Staff recommends that the City Council approve and authorize the City Manager or his designee to amend the existing funding agreement between the City of Palo Alto, the Silicon Valley Community Foundation, and the Palo Alto Transportation Management Association (PATMA), extending the term of the agreement for two years and providing an additional $100,000 per year for use by the PATMA in reducing single occupant vehicle (SOV) commute trips to/from Downtown Palo Alto. Background & Discussion Following direction from City Council in 2013, staff worked to develop Transportation Demand Management (TDM) strategies to encourage alternatives to solo driving as part of a multi- faceted effort to address traffic and parking concerns. The development of a Transportation Management Association (TMA) for Palo Alto was seen as a key component of this approach. The Palo Alto TMA (PATMA) was formed and incorporated as a nonprofit in January 2016. In June, 2016, Council authorized the City Manager to formalize the provision of City funding for TMA programs by executing a Funding Agreement between the City of Palo Alto, the Silicon Valley Community Foundation (SVCF), and the Palo Alto Transportation Management Association (PATMA). SVCF holds and administers a fund restricted to specific charitable purposes and has legal discretion and control over the restricted account. The Agreement expires on July 1, 2017. Under the Agreement, the City transferred the sum of $100,000 to City of Palo Alto Page 2 SVCF, to be deposited into the restricted account for "pilot projects" intended to reduce single occupancy vehicle trips by downtown workers, as mutually agreed upon by the City Manager and PATMA. As part of the Fiscal Year 2016 Adopted Operating Budget, $100,000 was allocated for TMA pilot projects. Several Councilmembers expressed concern regarding the use of the funding and transparency, and expressed a desire for the City to maintain an oversight role in the use of the funding. As a result, the City Council authorized the City Manager (Staff Report 6823) to enter into a Funding Agreement between the City of Palo Alto, the Silicon Valley Community Foundation, and the Palo Alto Transportation Management Association. The agreement governs the use of the $100,000 provided by the City of Palo Alto in FY16. The agreement limits the use of the City-provided funds to “pilot projects” conducted by the TMA with the intent to reduce single-occupancy vehicle trips by downtown commuters. The agreement makes funding for pilot programs contingent on the TMA providing reports twice annually to the City Council, with updates on the implementation and effectiveness of the pilot programs, conducting open meetings, and providing documents created by the TMA to the public. Representatives of the TMA are currently scheduled to provide a report to the City Council on March 6, 2017. In 2016, the TMA Board of Directors, at City Council request, developed a two year business plan that identified the resources required to fund activities. The budget included a baseline scenario denoting potential achievements with a minimum of continued funding of $100,000 annually. In anticipation, staff requested an additional $100,000, which Council approved as part of the Fiscal Year 2017 Adopted Operating Budget. Separately, the City supports the PATMA through a contract with MIG consultants which supports a part-time staff person, and supports the TMA’s annual survey of commuters to gaugue the program’s effectiveness. Funds available under the MIG contract will be exhausted later this year, and the PATMA will need to identify additional funds to hire and support a permanent staff person. With the recommended action, staff is requesting that City Council approve an extension of the City’s existing agreement with the PATMA and SVCF for two years (to December 2018), provide an additional $100,000 in funding from the City that was budgetted in FY2017, and commit to an additional $100,000 in FY2018. Under the terms of the agreement, the funding would be used for pilot projects agreed upon by the City Manager. Policy Implications The support of the Palo Alto TMA is consistent with the following Comprehensive Plan Policies: City of Palo Alto Page 3  Goal T-1: Less Reliance on Single-Occupant Vehicles  Policy T-3: Support the development and expansion of comprehensive, effective programs to reduce auto use at both local and regional levels. Resource Impact Staff is requesting an amendment of the Funding Agreement to include an additional $200,000: $100,000 for Fiscal Year 2017 and $100,000 for Fiscal Year 2018. The Fiscal Year 2017 Approved Operating Budget includes $100,000 for TMA pilot programs. Staff will explore alternative funding sources beyond the General fund for the $100,000 necessary in Fiscal Year 2018 and anticipates bringing forward recommendations as part of the Fiscal Year 2018 annual budget process. Environmental Review The requested action is exempt from review under the California Environmental Quality Act (CEQA) since it can be seen with certainty that there is no possibility of a significant impact on the environment (State CEQA Guidelines Section 15061(b)(3)). Attachments: Attachment A 2016-01-30 Amendment No 1 TMA Funding Agmt (DOCX) Attachment B June 2016 TMA Funding Agreement FINAL (PDF) 1 AMENDMENT NO. 1 TO AGREEMENT AMONG CITY OF PALO ALTO, SILICON VALLEY COMMUNITY FOUNDATION, AND THE PALO ALTO TRANSPORTATION MANAGEMENT ASSOCIATION TO PROVIDE FUNDING FOR TRANSPORTATION DEMAND MANAGEMENT SERVICES This Amendment No. 1 (“Amendment”) to the Agreement to provide funding for transportation demand management services (“Agreement”) is entered into February 13, 2017, by and among the City of Palo Alto, a California chartered municipal corporation (“CITY”), the Palo Alto Transportation Management Association, a California nonprofit public benefit corporation (“PATMA”), and Silicon Valley Community Foundation, a California nonprofit public benefit corporation ("SVCF") (collectively, “the parties”). R E C I T A L S A. The Agreement was entered into among the parties to provide funding for transportation demand management services for the Palo Alto Transportation Management Association. B. The parties wish to amend the Agreement to extend its term and increase the contribution provided by CITY. NOW, THEREFORE, in consideration of the covenants, terms, conditions, and provisions of this Amendment, the parties agree: SECTION 1. Section 2, Term, is hereby amended to read as follows: “2. Term. The term of this Agreement shall be from the Effective Date through December 31, 2018.” SECTION 2. Section 3, City Deposit, is hereby amended to read as follows: “3. City Deposit. The City shall annually transfer the sum of $100,000 (“City Funds”) to SVCF, to be deposited into the Restricted Account for use for the purposes described in this Agreement. The total amount of City Funds to be provided during the term of this Agreement shall not exceed $300,000.” // // // // // 2 // SECTION 3. Except as herein modified, all other provisions of the Agreement, including any exhibits and subsequent amendments thereto, shall remain in full force and effect. IN WITNESS WHEREOF, the parties have by their duly authorized representatives executed this Amendment on the date first above written. PALO ALTO TRANSPORTATION MANAGEMENT ASSOCIATION: ________________________________ Name: __________________________ Title: ___________________________ SILICON VALLEY COMMUNITY FOUNDATION: ________________________________ Name: __________________________ Title: ___________________________ CITY OF PALO ALTO: _______________________________ James Keene City Manager APPROVED AS TO FORM: ______________________________ Albert S. Yang Senior Deputy City Attorney 20 DocuSign Envelope ID: D4E6F812-D1CA-4EA5-9ECB-74E4F880AF96 DocuSign Envelope ID: D4E6F812-D1CA-4EA5-9ECB-74E4F880AF96 DocuSign Envelope ID: D4E6F812-D1CA-4EA5-9ECB-74E4F880AF96 DocuSign Envelope ID: D4E6F812-D1CA-4EA5-9ECB-74E4F880AF96 DocuSign Envelope ID: D4E6F812-D1CA-4EA5-9ECB-74E4F880AF96 DocuSign Envelope ID: D4E6F812-D1CA-4EA5-9ECB-74E4F880AF96 DocuSign Envelope ID: D4E6F812-D1CA-4EA5-9ECB-74E4F880AF96 DocuSign Envelope ID: D4E6F812-D1CA-4EA5-9ECB-74E4F880AF96