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
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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:
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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)
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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.”
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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
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