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HomeMy WebLinkAboutStaff Report 8122 City of Palo Alto (ID # 8122) City Council Staff Report Report Type: Action Items Meeting Date: 9/18/2017 City of Palo Alto Page 1 Summary Title: TMA Presentation and Amendment of the TMA Funding Agreement Title: Presentation by the Palo Alto Transportation Management Association, and Approval of an Amended and Restated Funding Agreement between the City of Palo Alto, the Silicon Valley Community Foundation, and the Palo Alto Transportation Management Association to provide $480,000 to the Palo Alto Transportation Management Association in FY2018 From: City Manager Lead Department: Planning and Community Environment Recommendation Staff recommends that the City Council: 1. receive a report from the Palo Alto Transportation Management Association (TMA), 2. authorize the City Manager to execute an amended and restated funding agreement (Attachment A) between the City of Palo Alto, the Silicon Valley Community Foundation (SVCF), and the Palo Alto Transportation Management Association (TMA), to:  extend the term of the agreement from December 31, 2018 to July 1, 2020, and  provide $480,000 in funding in the approved FY2018 City budget for use by the Palo Alto TMA in reducing single-occupant vehicle (SOV) commute trips to and from Downtown Palo Alto; and 3. authorize the City Manager to execute future amendments to the agreement for the purpose of providing any additional funding approved by Council and included in the City’s FY2019 and FY2020 budgets for the express purpose of supporting the TMA, and to remove the SVCF as a party to the agreement when the TMA receives formal IRS approval as a Section 501(c)(3) organization. Executive Summary The City Council approved an agreement with the Palo Alto TMA and the Silicon Valley Community Foundation (SVCF) in June 2016 to provide $100,000 in funding for TMA programs City of Palo Alto Page 2 to reduce SOV commute trips to and from downtown Palo Alto. Under a subsequent amendment, the City provided an additional $100,000 to support the TMA’s work in 2017. The City Council adopted a FY18 budget in late June that included funding for the Palo Alto TMA to continue to support its efforts to reduce SOV commute trips using a variety of strategies. The proposed amended and restated agreement incorporates the approved funding, extends the agreement’s term, and sets forth the parties’ obligations over the remaining years. In the past year, the TMA has used City funds to purchase transit passes for low-income workers, supporting their use of transit, and other programs such as carpooling and ride-share aimed at getting downtown commuters into carpools and alternative modes of transportation. The City’s funding in FY18 will allow the TMA to grow these programs and others at the same time that the organization seeks to mature and increase its visibility and results. With the budgeted funds, the Palo Alto TMA believes it can achieve a 14% decrease in SOV rates from the 2015 baseline year by the end of calendar year 2018. Background 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 in the downtown area and city at-large. The development of a TMA for Palo Alto was seen as a key component of this approach, which the City funded via a $499,880 contract with consultants Moore Iacofano Goltsman, Inc. (CMR #4766 August 11, 2014). After the TMA was formed in January 2016, this contract continued to fund sub-consultant Wendy Silvani, who has been serving as the TMA’s part time executive director. In June 2016, Council authorized the City Manager to formalize the provision of additional 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 TMA. Because the TMA is not yet an approved Section 501(c)(3) organization (its application is pending with the Internal Revenue Service), the TMA is currently operating as a program of SVCF. SVCF holds and administers a fund restricted to specific charitable purposes and has legal discretion and control over the restricted account. When the TMA receives its formal 501(c)(3) status (anticipated to occur in three to six months), the SVCF will cease to be the organization’s program sponsor and will no longer need to be a party to the agreement. Instead, the SVCF will simply act as the TMA’s fiscal agent. The City has provided funding for SOV commute trip reduction pilot projects since the TMA was formed. The City provided $100,000 in initial funding in FY16 under the original tri-party funding agreement between the City of Palo Alto, the Silicon Valley Community Foundation, and the Palo Alto Transportation Management Association. In February 2017, the City Council City of Palo Alto Page 3 authorized the City Manager to amend the funding agreement to provide an additional $100,000 in funding from the City in FY2017 and in FY2018, for a total additional amount of $200,000 over the two years (see City Manager Report 7704 at http://www.cityofpaloalto.org/civicax/filebank/blobdload.aspx?BlobID=55797). The City has provided the amount for FY2017, but not FY2018. The City’s contract with Moore Iacofano Goltsman, Inc. will be exhausted shortly and the PATMA is currently seeking to hire a permanent (part time) staff. Discussion At its June 27, 2017 meeting, City Council approved an increase to the downtown garage and lot parking permit fees to add revenue to the University Avenue Parking Fund and support SOV commute trip reduction activities of the PATMA with dedicated funding to the TMA of $480,000 for FY2018. With this funding, the PATMA has estimated that they could shift up to 750 people to non-SOV modes, thereby achieving a 14% reduction in SOV commute trips (below the baseline of 5,500 identified in the benchmark survey) by the end of calendar year 2018. With the recommended action, staff is requesting that City Council authorize the City Manager or his designee to execute an amended and restated tri-party funding agreement to provide a total of $480,000 in funding in FY2018. Under the terms of the agreement, the funding would be used for pilot SOV commute trip reduction pilot projects approved by the City Manager and the TMA would be required to report on their progress quarterly. Up to 30% of the funds could be used for TMA administration and the City Manager would have the authority to amend the contract in FY19 and FY20 if the City Council budgets additional funding for the TMA in those budget years. For background on the TMA and a press release regarding their 2017 Downtown Palo Alto employee survey, see the TMA website at: www.paloaltotma.org and: www.paloaltotma.org/wp-content/uploads/2017/08/PATMA-Press-Release-Survey.pdf. The 2017 Downtown Palo Alto Mode Share Survey summary is included as Attachment B and is one of two ways that the TMA has been measuring its effectiveness. In addition to this statistically valid survey, the TMA tracks the transit passes it distributes and commuter participation in a variety of other programs. A representative of the TMA will provide an oral summary/presentation. Policy Implications The support of the Palo Alto TMA is consistent with the following Comprehensive Plan Policies:  Goal T-1: Less Reliance on Single-Occupant Vehicles  Policy T-3: Support the development and expansion of comprehensive, effective City of Palo Alto Page 4 programs to reduce auto use at both local and regional levels. Resource Impact Staff is requesting approval of an amended and restated tri-party funding agreement to provide the TMA with access to $480,000 in funding included in the adopted Fiscal Year 2018 budget. This action is to be funded through the University Avenue Parking Fund through increases in parking permit rates that went into effect on July 1, 2017, thereby avoiding a General Fund subsidy for this activity. Future funding needs will be brought forth as part of the annual budget process subject to Council approval. 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 - TMA Funding Agreement September 2017 (PDF) Attachment B - PATMA 2017 Downtown Employee Survey Results (PDF) TMA Funding Agreement September 2017 1 AMENDED AND RESTATED 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 FOR PALO ALTO TRANSPORTATION MANAGEMENT ASSOCIATION This Amended and Restated Agreement to provide funding for transportation demand management services (this "Agreement"), initially executed as of June 20, 2016 (the “Effective Date”), as fully amended and restated as of September ____, 2017, is made and entered by and between 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"), on the following terms and conditions. RECITALS 1. Since 2013, the City has been actively engaged in developing Transportation Demand Management (TDM) strategies to encourage alternatives to solo driving to address Palo Alto’s growing traffic and parking concerns. 2. The City engaged Moore Iacofano Goltsman, Incorporated (“MIG”), a consultant group with significant experience designing Bay Area Transportation Management Associations (TMA’s), to assist in forming a TMA. The Palo Alto Transportation Management Association (PATMA) was incorporated on January 1, 2016. 3. The City has an interest in the success of the PATMA, and made funding available for technical support during the start-up phase of the organization using the funds set aside for the MIG contract. The City has also provided funding for a survey of Downtown employee commute patterns in each of the last several years. 4. SVCF and PATMA have entered into that certain Customized Philanthropy Services Agreement (the “CPS Agreement”), pursuant to which SVCF holds and administers a fund restricted to specific charitable purposes set forth in such agreement (“Restricted Account”). The PATMA is presently a program of the SVCF and SVCF has legal discretion and control over the Restricted Account. 5. The PATMA intends to seek funding from public and private foundations, private businesses, public agencies and other financial supporters. 6. The mission statement of the PATMA is to reduce single occupancy vehicle (SOV) trips, traffic congestion and demand for parking by delivering targeted transportation solutions to the Downtown area’s diverse range of employers, employees, visitors and residents. The PATMA also serves as a one-stop transportation information resource, and is an active voice in local and regional transportation issues. While the primary focus of the PATMA is the Downtown population whose travel choices have the highest impacts, its programs and services may ultimately extend beyond these constituents. TMA Funding Agreement September 2017 2 7. On June 20, 2016, the City entered into an agreement with PATMA and SVCF to provide $100,000 in funding for pilot programs of the PATMA aimed at testing the effectiveness of PATMA incentives and programs to reduce commuting to Downtown by SOVs (“Original Funding Agreement”). The City, PATMA and SVCF are collectively referred to herein as the “Parties”. 8. On February 13, 2017, the Parties amended the Original Funding Agreement providing for an additional $200,000 in funding from the City to PATMA over two years, with half paid in FY 2017 and the balance paid in FY 2018. The City has to-date provided $100,000 under the Original Funding Agreement and $100,000 under the amendment. 9. The PATMA pilot programs have been successful on a small scale, providing transit passes to 100 low-income workers per month and encouraging carpool use by other workers, for an estimated reduction of SOV commute trips by 8% below the 2015 baseline of 5,500. 10. The City and the PATMA wish to elevate the profile of the PATMA over the next year and expand its programs to achieve a greater reduction in SOV commute trips. To this end, the PATMA is seeking a new executive director and the City has budgeted additional funding for PATMA programs. 11. This Agreement amends and restates the Original Funding Agreement, as amended, in its entirety. The Parties agree to enter into this Amended and Restated Funding Agreement to provide additional funding to support the development and facilitate the effectiveness of the PATMA, through the expansion of pilot programs to reduce SOV trips by downtown workers in Palo Alto, and to establish terms and conditions for the use of these funds. AGREEMENT NOW, THEREFORE, for good and valuable consideration, the receipt and adequacy of which are hereby acknowledged, the Parties hereby agree as follows: 1. Recitals. The recitals set forth above are true and correct and are hereby incorporated into this Agreement in their entirety. 2. Term and Termination. The term of this Agreement shall be from the Effective Date through July 1, 2020. This Agreement may be terminated by the City, PATMA or SVCF by providing at least thirty (30) days’ notice to all Parties. Within six (6) months of termination, SVCF shall return to the City any funds paid by the City that remain unexpended as of the date of termination. 3. City Deposit. The City shall transfer the sum of $680,000 (“City Funds”) to SVCF, to be deposited into the Restricted Account for use for the purposes described in this Agreement. The Parties acknowledge and agree that the City has transferred the sum of $200,000 to SVCF ($100,000 in June 2016 and $100,000 in July 2017), leaving $480,000 to be transferred subsequent to the full execution of this Amended and Restated Agreement. TMA Funding Agreement September 2017 3 The City shall transfer the sum of $480,000 to SVCF, to be deposited into the Restricted Account for use for the purposes described in this Agreement. The City shall transfer a quarter of the remaining City Funds in the amount of $120,000 on a quarterly basis during the first year following full execution of this Amended and Restated Agreement (2017-2018), upon receipt of an invoice submitted quarterly by PATMA. City may transfer additional funds for the final two years of the Agreement subject to the appropriation of funds by the City Council through City’s annual budget process. Should additional funds be appropriated, the parties will amend this Agreement prior to any transfer of funds to SVCF. The City Manager will be authorized to execute such an amendment for City. 4. Use of City Funds. SVCF shall hold and administer the City Funds pursuant to the terms of the Restricted Account. SVCF and PATMA shall use the City Funds for the general purposes of the Restricted Account, as defined in the CPS Agreement, as further restricted for “pilot projects” intended to reduce single occupancy vehicle trips by downtown workers, as mutually agreed upon by the City Manager and PATMA. Pilot projects may include purchase and distribution of transit passes, support for carpooling, and other measures to address first mile and last mile connections. If PATMA uses City Funds to purchase transit passes to give away free- of-charge, the free transit passes shall be provided solely to low income workers. SVCF shall track the City Funds separately from other amounts held in the Restricted Account. 5. Strategic Plan and Budget. Within 90 days of the full execution of this Amended and Restated Agreement or with its first quarterly invoice, whichever occurs first, and annually thereafter, PATMA shall provide a detailed, updated strategic plan and budget to the City. The strategic plan may utilize scenarios to illustrate the return on investment associated with different funding levels. The strategic plan shall identify the pilot projects proposed to be funded with the City Funds for the City Manager’s review and approval. 6. Reporting Requirement. PATMA shall provide the City Council with quarterly written reports on the implementation and effectiveness of pilot programs funded by the City, including quantitative measures of SOV trip reduction and mode shift achieved, metrics used, cost per employee mode shift, and how the City Funds were expended. PATMA shall submit the reports at the same time that PATMA or SVCP submits the quarterly invoice to the City. 7. Survey. PATMA shall conduct a statistically valid survey of Downtown employee commute patterns on an annual basis. PATMA shall submit the survey results and report to the City by July of each year. 8. Public Meeting Requirement. The funding is expressly contingent on PATMA’s agreement to provide 72 hours written advance notice to the public of all Board of Director meetings and to allow members of the public to attend all such Board of Director meetings. 9. Work Product. PATMA shall ensure any written document or other work product developed with funds received through this Agreement is made available to the public to the extent not otherwise prohibited by law. TMA Funding Agreement September 2017 4 10. Audits. PATMA and SVCF will make available all financial records related to the funds and the use of the funds during the term of this Agreement and for three (3) years thereafter. PATMA and SVCF further agree to maintain and retain such records for at least three (3) years after the expiration or earlier termination of this Agreement. 11. Indemnity. To the fullest extent permitted by law, PATMA shall protect, indemnify, defend and hold harmless CITY and its Council members, SVCF, and each of the City’s and SVCF’s officers, employees and agents (each an “Indemnified Party”) from and against any and all demands, claims, or liability of any nature, including death or injury to any person, property damage or any other loss, including all costs and expenses of whatever nature including attorney’s fees, experts fees, court costs and disbursements (“Claims”) resulting from, arising out of or in any manner related to performance or nonperformance by PATMA, its officers, employees, agents or contractors under this Agreement, regardless of whether or not it is caused in part by an Indemnified Party. Notwithstanding the above, nothing in this section shall be construed to require PATMA to indemnify an Indemnified Party from Claims arising from the active negligence, sole negligence or willful misconduct of an Indemnified Party. The provisions of this section shall survive the expiration or early termination of this Agreement. 12. Insurance. PATMA, at its sole cost and expense, shall obtain and maintain, in full force and effect during the term of this Agreement, the insurance coverage described in Exhibit "A". PATMA and its contractors, if any, shall obtain a policy endorsement naming CITY as an additional insured under any general liability or automobile policy or policies. All insurance coverage required hereunder shall be provided through carriers with AM Best’s Key Rating Guide ratings of A-:VII or higher which are licensed or authorized to transact insurance business in the State of California. Any and all contractors of PATMA retained to perform Services under this Agreement will obtain and maintain, in full force and effect during the term of this Agreement, identical insurance coverage, naming CITY as an additional insured under such policies as required above. 13. Other Provisions: (a) Strategic Planning Session. PATMA shall conduct a strategic planning session within 90 days of the date of the full execution of this Amended and Restated Agreement, and annually thereafter, producing 3-year goals and objectives and funding requirements, and a budget with projected metrics (cost per mode shift, ROI, etc.). (b) Business Registry Data. The City may elect to share certain data from its Business Registry with PATMA for PATMA’s exclusive use in program development and marketing. PATMA agrees not to share any non-public data with others and will take all necessary steps to ensure the continued confidentiality of any such non-public data. TMA Funding Agreement September 2017 5 (c) Performance Monitoring. The City may implement its own performance monitoring of City funded programs to determine effectiveness of provided funds. (d) Additional Use Restrictions. The City Funds will not be used for anything other than project management and program costs of the agreed to projects until the funds are expired. Up to thirty percent (30%) of City Funds provided may be used for administration costs and purposes. (e) Board Members. The City may request that the PATMA Board be expanded to include additional members, possibly including residents and additional City representation. (f) Fundraising. PATMA shall undertake significant efforts to raise funds from sources other than the City, including but not limited to membership fees, grants and donations, to implement programs to achieve reductions in SOV commute trips by downtown workers in Palo Alto. The parties expect that, assuming City funding remains constant over the term of the Agreement (which it may not), the amounts raised from other funding sources will represent a proportionately greater share of the PATMA’s total funding in the final two years of this Agreement. 14. Notices. All notices hereunder will be given in writing and mailed, postage prepaid, by certified mail, addressed as follows: To CITY: Office of the City Clerk City of Palo Alto Post Office Box 10250 Palo Alto, CA 94303 With a copy to the Purchasing Manager To PATMA: Palo Alto Transportation Management Association Attn: Wendy Silvani 791 Mandana Blvd. Oakland, CA 94610 To SVCF: Silicon Valley Community Foundation Attn: Michelle Fries on behalf of PATMA, Fund #5495 2440 West El Camino Real, Suite 300 Mountain View, CA 94040 TMA Funding Agreement September 2017 6 15. Authority to Bind. The individuals executing this Agreement represent and warrant that they have the legal capacity and authority to do so on behalf of their respective legal entities. 16. Counterpart Signatures. This Agreement may be signed in multiple counterparts, which shall, when executed by all the parties, constitute a single binding agreement. 17. Waiver. No delay or omission by either party to exercise any right occurring upon any noncompliance or default by the other party with respect to any of the terms of this Agreement shall impair any such right or power or be construed as a waiver thereof. A waiver by either of the parties of any of the covenants, conditions or agreements to be performed by the other party shall not be construed to be a waiver of any succeeding breach thereof or of any covenant, condition or agreement herein contained. 18. Applicable Law. This Agreement will be governed by the laws of the State of California. 19. Venue. In the event that an action is brought, the parties agree that trial of such action will be vested exclusively in the state courts of California in the County of Santa Clara, State of California. 20. Amendments. This document represents the entire and integrated agreement between the parties and supersedes all prior negotiations, representations, and contracts, either written or oral. This document may be amended only by a written instrument, which is signed by the parties. 21. Severability. If a court of competent jurisdiction finds or rules that any provision of this Agreement or any amendment thereto is void or unenforceable, the unaffected provisions of this Agreement and any amendments thereto will remain in full force and effect. [Signatures appear on the following page] TMA Funding Agreement September 2017 7 IN WITNESS WHEREOF, the Parties have executed this Agreement the day and year first written above. PALO ALTO TRANSPORTATION MANAGEMENT ASSOCIATION: ________________________________ Robert George Chair, Palo Alto TMA SILICON VALLEY COMMUNITY FOUNDATION: ________________________________ Mari Ellen Loijens Chief Business, Development and Brand Officer CITY OF PALO ALTO: _______________________________ James Keene City Manager APPROVED AS TO FORM: ______________________________ Assistant City Attorney TMA Funding Agreement September 2017 8 EXHIBIT “A” INSURANCE REQUIREMENTS CONTRACTORS TO THE CITY OF PALO ALTO (CITY), AT THEIR SOLE EXPENSE, SHALL FOR THE TERM OF THE CONTRACT OBTAIN AND MAINTAIN INSURANCE IN THE AMOUNTS FOR THE COVERAGE SPECIFIED BELOW, AFFORDED BY COMPANIES WITH AM BEST’S KEY RATING OF A-:VII, OR HIGHER, LICENSED OR AUTHORIZED TO TRANSACT INSURANCE BUSINESS IN THE STATE OF CALIFORNIA. AWARD IS CONTINGENT ON COMPLIANCE WITH CITY’S INSURANCE REQUIREMENTS, AS SPECIFIED, BELOW: REQUIRE D TYPE OF COVERAGE REQUIREMENT MINIMUM LIMITS EACH OCCURRENCE AGGREGATE YES YES WORKER’S COMPENSATION EMPLOYER’S LIABILITY STATUTORY STATUTORY YES GENERAL LIABILITY, INCLUDING PERSONAL INJURY, BROAD FORM PROPERTY DAMAGE BLANKET CONTRACTUAL, AND FIRE LEGAL LIABILITY BODILY INJURY PROPERTY DAMAGE BODILY INJURY & PROPERTY DAMAGE COMBINED. $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 YES AUTOMOBILE LIABILITY, INCLUDING ALL OWNED, HIRED, NON-OWNED BODILY INJURY - EACH PERSON - EACH OCCURRENCE PROPERTY DAMAGE BODILY INJURY AND PROPERTY DAMAGE, COMBINED $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 YES PROFESSIONAL LIABILITY, INCLUDING, ERRORS AND OMISSIONS, MALPRACTICE (WHEN APPLICABLE), AND NEGLIGENT PERFORMANCE ALL DAMAGES $1,000,000 YES THE CITY OF PALO ALTO IS TO BE NAMED AS AN ADDITIONAL INSURED: CONTRACTOR, AT ITS SOLE COST AND EXPENSE, SHALL OBTAIN AND MAINTAIN, IN FULL FORCE AND EFFECT THROUGHOUT THE ENTIRE TERM OF ANY RESULTANT AGREEMENT, THE INSURANCE COVERAGE HEREIN DESCRIBED, INSURING NOT ONLY CONTRACTOR AND ITS SUBCONSULTANTS, IF ANY, BUT ALSO, WITH THE EXCEPTION OF WORKERS’ COMPENSATION, EMPLOYER’S LIABILITY AND PROFESSIONAL INSURANCE, NAMING AS ADDITIONAL INSUREDS CITY, ITS COUNCIL MEMBERS, OFFICERS, AGENTS, AND EMPLOYEES. I. INSURANCE COVERAGE MUST INCLUDE: A. A PROVISION FOR A WRITTEN THIRTY (30) DAY ADVANCE NOTICE TO CITY OF CHANGE IN COVERAGE OR OF COVERAGE CANCELLATION; AND B. A CONTRACTUAL LIABILITY ENDORSEMENT PROVIDING INSURANCE COVERAGE FOR CONTRACTOR’S AGREEMENT TO INDEMNIFY CITY. C. DEDUCTIBLE AMOUNTS IN EXCESS OF $5,000 REQUIRE CITY’S PRIOR APPROVAL. II. CONTACTOR MUST SUBMIT CERTIFICATES(S) OF INSURANCE EVIDENCING REQUIRED COVERAGE. III. ENDORSEMENT PROVISIONS, WITH RESPECT TO THE INSURANCE AFFORDED TO “ADDITIONAL INSUREDS” A. PRIMARY COVERAGE WITH RESPECT TO CLAIMS ARISING OUT OF THE OPERATIONS OF THE NAMED INSURED, INSURANCE AS AFFORDED BY THIS POLICY IS PRIMARY AND IS NOT ADDITIONAL TO OR CONTRIBUTING WITH ANY OTHER INSURANCE CARRIED BY OR FOR THE BENEFIT OF THE ADDITIONAL INSUREDS. TMA Funding Agreement September 2017 9 B. CROSS LIABILITY THE NAMING OF MORE THAN ONE PERSON, FIRM, OR CORPORATION AS INSUREDS UNDER THE POLICY SHALL NOT, FOR THAT REASON ALONE, EXTINGUISH ANY RIGHTS OF THE INSURED AGAINST ANOTHER, BUT THIS ENDORSEMENT, AND THE NAMING OF MULTIPLE INSUREDS, SHALL NOT INCREASE THE TOTAL LIABILITY OF THE COMPANY UNDER THIS POLICY. C. NOTICE OF CANCELLATION 1. IF THE POLICY IS CANCELED BEFORE ITS EXPIRATION DATE FOR ANY REASON OTHER THAN THE NON-PAYMENT OF PREMIUM, THE ISSUING COMPANY SHALL PROVIDE CITY AT LEAST A THIRTY (30) DAY WRITTEN NOTICE BEFORE THE EFFECTIVE DATE OF CANCELLATION. 2. IF THE POLICY IS CANCELED BEFORE ITS EXPIRATION DATE FOR THE NON-PAYMENT OF PREMIUM, THE ISSUING COMPANY SHALL PROVIDE CITY AT LEAST A TEN (10) DAY WRITTEN NOTICE BEFORE THE EFFECTIVE DATE OF CANCELLATION. NOTICES SHALL BE MAILED TO: PURCHASING AND CONTRACT ADMINISTRATION CITY OF PALO ALTO P.O. BOX 10250 PALO ALTO, CA 94303 Downtown Palo Alto Mode Share Survey June 2017 17-6393 Palo Alto TMA | 2 The survey methodology of the 2017 mode share survey follows the same approach as the 2016 and 2015 mode share surveys. 892 surveys were conducted with employees at businesses located within an area of Downtown Palo Alto bound by El Camino Real, Webster Street, Everett Avenue, and Forest Avenue. A random sample of worksites was pulled by worksite size, including small, medium and large businesses. Sampled worksites were contacted directly to identify and recruit an onsite survey coordinator who distributed the surveys to all employees at their respective worksites. Surveys were conducted online, by phone, and by paper formats. Upon request, paper surveys were offered in Spanish. Data collection began May 11th and ended the week of June 26th. Each respondent was asked commute mode questions for one calendar week previous to the date on which they took the survey. Where applicable, results are compared to the Downtown Palo Alto survey conducted in 2016 among 829 employees and in 2015 among 1,173 employees. Methodology 17-6393 Palo Alto TMA | 3 Downtown Palo Alto For this study, Downtown Palo Alto was defined as the area bound by El Camino Real, Webster Street, Everett Avenue, and Forest Avenue. 17-6393 Palo Alto TMA | 4 Home Regions Survey respondents were categorized into home regions based on zip code data. 2015 2016 2017 Region % %% San Francisco 10%10%8% Peninsula 20%26%23% South Bay 33%26%33% Palo Alto 22%19%17% East Bay 7%10%10% Else 8%9%9% 17-6393 Palo Alto TMA | 5 The 2017 survey data shows that focusing on service and light office workers and providing transportation benefits is making an impact. Parking permits encourage SOV trips. If parking permits become less accessible, commuters may be motivated to look for commute alternatives. Ridesharing is emerging as a more popular commute mode. Additionally, more SOV commuters are willing to carpool or vanpool to work if it was convenient, safe, and easy to find someone to carpool with. Overall Key Findings Mode Share 17-6393 Palo Alto TMA | 7 To collect commute mode share data, respondents were asked –“Last week, what mode of transportation did you use each day to commute to downtown Palo Alto?” Respondents chose one mode of transportation per day. If the respondent used multiple modes, they were asked to mark the mode that covered the longest distance of their trip. For this report, transportation modes were grouped into the following categories: Mode Share Overview Category Commute mode options provided Drove alone Drove alone, Motorcycle/Moped Transit Caltrain, VTA,SamTrans,Stanford Marguerite Shuttle, Palo Alto Shuttles, AC Transit, Company-sponsored shuttle Walk/Bike Walked, Rode a bicycle Rideshare Carpooled (1 or more family/friends), Carpooled (through service like Scoop or Karma or an employer match system), Lyft, Uber/rideshare service Other Worked remotely, Other 17-6393 Palo Alto TMA | 8 57%56%53% 18%18%20%15%15%12% 5%6%8%5%5%7% 2015 2016 2017 2015 2016 2017 2015 2016 2017 2015 2016 2017 2015 2016 2017 Drove alone Transit Walk/Bike Rideshare Other Mode Share Overall In 2017, commuters driving alone has decreased, use of transit has increased slightly, and rideshare has increased. To compare overall mode share over time for all three surveys, datasets are weighted so that worksite type and worksite size is held constant. Q1. Last week, what mode of transportation did you use each day to commute TO downtown Palo Alto? In 2017, 53% of all trips taken in the previous week were workers driving alone. Worksite Type 17-6393 Palo Alto TMA | 10 Worksites in downtown Palo Alto can be grouped into 4 general categories: In 2015 and 2016, surveys found that those working in service and light office worksites have the highest SOV rates, followed by government workers. The 2017 data shows that service worksites had the largest reduction in SOV rates, decreasing from 80% to 70%. Increased use of transit and ridesharing are responsible for the decrease. Worksite Type Key Findings Category % of Sample Description Government 13%Work for the City of Palo Alto Technology 28%Work in a tech related industry Service 30%Work in restaurants, retail, lodging, salons, etc. Light Office 29%Work for a law firm, insurance, realtor, eye care, dentist, etc. 17-6393 Palo Alto TMA | 11 Mode Share by Worksite Type 54% 30% 70%69% 23% 30% 10%13% 4% 23% 6%4%9%6%11%9%10%11% 3%6% Government (13%) Technology (28%) Service (30%) Light office (29%) Drove alone Transit Walk/Bike Rideshare Other Those working in service and light office worksites report the highest SOV rates, followed by government. Technology worksites continue to have the lowest SOV rates. Technology and government workers report the highest use of transit. Numbers in parentheses represent the percentage of the sample for each respective subgroup. Q1. Last week, what mode of transportation did you use each day to commute TO downtown Palo Alto? 17-6393 Palo Alto TMA | 12 59%57%54% 22%24%23% 6%7%4%7%4%9%7%8%10% 2015 2016 2017 2015 2016 2017 2015 2016 2017 2015 2016 2017 2015 2016 2017 Drove alone Transit Walk/Bike Rideshare Other Mode Share Among Government Workers Since 2015, SOV trips among government workers have steadily decreased and use of ridesharing has increased. Q1. Last week, what mode of transportation did you use each day to commute TO downtown Palo Alto? Among Government Workers %’s reflect the total amount of trips taken during the week 17-6393 Palo Alto TMA | 13 33% 26%30%31%31%30%26%28%23% 4%8%6%7%7%11% 2015 2016 2017 2015 2016 2017 2015 2016 2017 2015 2016 2017 2015 2016 2017 Drove alone Transit Walk/Bike Rideshare Other Mode Share Among Technology Workers SOV trips among technology workers have fluctuated since 2015 but remain low at 30% and use of transit has remained high at 30%. Q1. Last week, what mode of transportation did you use each day to commute TO downtown Palo Alto? %’s reflect the total amount of trips taken during the week Among Technology Workers 17-6393 Palo Alto TMA | 14 74%80% 70% 9%4%10%6%10%6%6%4%11%5%2%3% 2015 2016 2017 2015 2016 2017 2015 2016 2017 2015 2016 2017 2015 2016 2017 Drove alone Transit Walk/Bike Rideshare Other Mode Share Among Service Workers Compared to 2016, SOV trips among service workers are down 10 percentage points and transit trips have increased by 6 percentage points and rideshare trips by 7 points. Q1. Last week, what mode of transportation did you use each day to commute TO downtown Palo Alto? %’s reflect the total amount of trips taken during the week Among Service Workers 17-6393 Palo Alto TMA | 15 69%74%69% 10%14%13%12% 3%4%4%4%9%5%5%6% 2015 2016 2017 2015 2016 2017 2015 2016 2017 2015 2016 2017 2015 2016 2017 Drove alone Transit Walk/Bike Rideshare Other Mode Share Among Light Office Workers Most workers in a light office environment report driving alone to commute to work. However, compared to 2016, the total share of SOV trips has dropped 5 points and use of ridesharing has doubled. Q1. Last week, what mode of transportation did you use each day to commute TO downtown Palo Alto? %’s reflect the total amount of trips taken during the week Among Light Office Workers Transit Benefits 17-6393 Palo Alto TMA | 17 Providing workers with transit benefits like a discounted transit pass or a contribution towards transit significantly decreases SOV rates. Transit benefits are most common among government and technology worksites and are much lower among service and light office worksites. If transit benefits are able to reach those in the service and light office worksites, SOV trips may continue to decrease. Transit Benefits Key Findings 17-6393 Palo Alto TMA | 18 Transit Benefits Received About a third of workers in downtown Palo Alto receive a transit subsidy like a discounted transit pass or a contribution towards transit use. Among those that do receive transit benefits, most receive a single benefit, as opposed to multiple benefits. Q4. Do you receive… 32% 19% 7% 54% Receives transit subsidies Information about commute alternatives Receives pre-tax payroll deduction for transportation Receives no transit benefits Do you receive any of the following? (Multiple answers accepted) 54% 37% 7% 2% Receives no benefits Receives 1 benefit Receives 2 benefits Receives 3 benefits Number of benefits received 17-6393 Palo Alto TMA | 19 Transit Benefits by Worksite Type Government and technology workers receive the most transit benefits. Q4. Do you receive… (Multiple answers accepted) 49% 66% 8% 17% 44% 20%14%11%14%9% 1%7% 24%24% 78% 71% Government (13%) Technology (28%) Service (30%) Light office (29%) Transit subsidies Information about commute alternatives Pre-tax payroll deduction for transportation No transit benefits 17-6393 Palo Alto TMA | 20 Mode Share by Benefits Received 27% 65% 36% 70% 42% 8% 32% 7% 15% 9%6%9%5%10% 17% 10%10%8%9%5% Receives transit subsidies (32%) Receives information about commute alternatives (19%) Receives pre-tax payroll deduction for transportation (7%) No transit benefits (54%) Drove alone Transit Walk/Bike Rideshare Other Receiving transit subsidies and/or pre-tax payroll deductions for transportation results in significantly lower SOV rates and higher transit rates. SOV rates are high among those that do not receive any transit benefits. Numbers in parentheses represent the percentage of the sample for each respective subgroup. Q1. Last week, what mode of transportation did you use each day to commute TO downtown Palo Alto? Parking Permits 17-6393 Palo Alto TMA | 22 About a third of survey respondents (35%) have a residential parking permit for on street parking or a permit to park in a downtown garage. Government workers report the highest rates of having a parking permit –followed by light office and service workers. SOV rates among those that have a parking permit are much higher than the overall average. If parking permits become more expensive, less readily available, or otherwise harder to secure, commuters will likely explore other commute alternatives. Parking Permit Key Findings 17-6393 Palo Alto TMA | 23 Parking Permits About a third of workers in downtown Palo Alto have a residential parking permit for on street parking or to park in a garage. Q6. Do you have a Residential Parking Permit for on-street parking or a permit to park in a Downtown garage? 35% 47% 18% Has a parking permit Do not have a parking permit/Don't know Don't drive to work 17-6393 Palo Alto TMA | 24 49% 22% 34% 41%40%42% 53%50% 11% 35% 13%9% Government (13%) Technology (28%) Service (30%) Light office (29%) Has a parking permit Does not have a parking permit/ Don't know Doesn't drive to work Parking Permits by Worksite Type Government and light office workers are most likely to have parking permits; technology workers are the least likely to have parking permits. Q6. Do you have a Residential Parking Permit for on-street parking or a permit to park in a Downtown garage? 17-6393 Palo Alto TMA | 25 Mode Share by Parking Permit Ownership 75% 65% 0% 8%13% 49% 4%6% 32% 6%10%9%6%6%9% Has a parking permit (35%) Does not have a parking permit/Don't know (47%) Doesn't drive to work (18%) Drove alone Transit Walk/Bike Rideshare Other Parking permit holders have the highest SOV rates. Numbers in parentheses represent the percentage of the sample for each respective subgroup. Q1. Last week, what mode of transportation did you use each day to commute TO downtown Palo Alto? Transportation Attitudes 17-6393 Palo Alto TMA | 27 Driving Attitudes Driving attitudes among SOV drivers are similar to attitudes seen in 2016 –with many agreeing that they prefer to drive to work and/or that they need to drive to work because they need to make other stops for school, kids, or errands. Q11-28. Please indicate whether you strongly agree, somewhat agree, somewhat disagree, or strongly disagree with each of the following statements. 73% 66% 48% 45% 72% 68% 46% 51% 67% 60% 50% 44% I prefer to drive to work and plan on continuing to do so. I need to drive to work because I make other stops (school, kids, errands) before or after work. I would rather not drive to work, but I have no other good options. I need to drive to work because I use my car for meetings, deliveries, or other work-related tasks. 2017 2016 2015 Do you agree or disagree with the following? (% Agree) Among SOV drivers only 2017: 590n 2016: 772n 2015: 539n 17-6393 Palo Alto TMA | 28 Transit Attitudes SOV drivers may be more open to taking transit to work compared to previous years. More agree that they would take transit if certain conditions were better, like faster service, or if it was easier to get to a transit stop. Q11-28. Please indicate whether you strongly agree, somewhat agree, somewhat disagree, or strongly disagree with each of the following statements. 53% 48% 47% 38% 37% 36% 45% 36% 42% 31% 29% 31% 47% 43% 46% 38% I would take transit to work if the service was faster or more frequent. I would take transit to work if it was easier to get to a transit stop. I would take transit to work if the schedule was better and it ran when I needed it. I would take transit to work if it was less expensive or I was given a discounted transit pass. I would take transit if parking at transit was less expensive. I would take transit if parking at transit stops was available. 2017 2016 2015 Do you agree or disagree with the following? (% Agree) Among SOV drivers only 2017: 590n 2016: 772n 2015: 539n 17-6393 Palo Alto TMA | 29 Transit Attitudes by Worksite Type Nearly half of service workers who drive alone indicate they would take transit to work if it was less expensive or were given a discounted pass. Q11-28. Please indicate whether you strongly agree, somewhat agree, somewhat disagree, or strongly disagree with each of the following statements. Among SOV drivers only, 2017: 590n 40% 27% 47% 36% 27% 32% 26% 40% 33% 41% 26%24% Government (13%) Technology (28%) Service (30%) Light office (29%) Agree Disagree Don't know/Does not apply Agree/Disagree: I would take transit to work if it was less expensive or I was given a discounted transit pass. 17-6393 Palo Alto TMA | 30 Non-Motorized Attitudes Among SOV drivers, attitudes towards non-motorized commute options have remained consistent since 2015. About a quarter of SOV drivers would be motivated to walk or bike if there were better paths, trails, and sidewalks. Q11-28. Please indicate whether you strongly agree, somewhat agree, somewhat disagree, or strongly disagree with each of the following statements. 26% 16% 13% 24% 16% 24% 18% I would walk or bike to work if there were better paths, trails, and sidewalks. I would bike to work if there was better parking or storage options for my bike at my work location. I would bike to work if I had a bicycle to use. 2017 2016 2015 Do you agree or disagree with the following? (% Agree) Among SOV drivers only 2017: 590n 2016: 772n 2015: 539n 17-6393 Palo Alto TMA | 31 Ridesharing Attitudes In 2017, 3 new attitudinal questions about ridesharing were added to the survey. A little less than half of SOV drivers agree that they would use a rideshare service if it was more affordable and/or are willing to carpool at least some of the time. Q11-28. Please indicate whether you strongly agree, somewhat agree, somewhat disagree, or strongly disagree with each of the following statements. 40% 39% 38% 25% 31% 35% I would be willing to use a ride-share service like Lyft or Uber if it was more affordable. I would be willing to drive in a carpool at least some of the time. I would be willing to carpool or vanpool to work if it was convenient, safe, and easy to find someone to ride with. I would be willing to carpool if it was more affordable. 2017 2016 2015 Do you agree or disagree with the following? (% Agree) Among SOV drivers only 2017: 590n 2016: 772n 2015: 539n 17-6393 Palo Alto TMA | 32 Interest in Learning Commuter Options Many SOV drivers are interested in learning more about commuting options and incentives. Q11-28. Please indicate whether you strongly agree, somewhat agree, somewhat disagree, or strongly disagree with each of the following statements. 43% 40% I am interested in learning more about commuting options and incentives that may be available to me. 2017 2016 Do you agree or disagree with the following? (% Agree) Among SOV drivers only 2017: 590n 2016: 772n 2015: 539n 17-6393 Palo Alto TMA | 33 Reasons for NOT Taking Transit –Top Mentions Among SOV drivers, reasons for not taking transit have fluctuated since 2015. However, the top reason for not taking transit has consistently been that the person needs their car to run errands or attend meetings. Q29. What is the main reason you do not take transit more often? 21% 18% 14% 11% 10% 8% 4% 4% 29% 15% 18% 9% 7% 9% 4% 2% 21% 16% 17% 12% 12% 5% 5% I need my car to run errands or attend meetings Schedule is not convenient/ Service not available when I need it I prefer to drive Routes do not go where needed/ Service is not provided to the right areas Location of stops is not convenient Transit takes too long and/ or requires too many transfers I take transit as often as I can/ As often as I need to It's too expensive 2017 2016 2015 Why do you not take transit more often? (One answer accepted, Top mentions listed) Among SOV drivers only 2017: 590n 2016: 772n 2015: 539n Parking 17-6393 Palo Alto TMA | 35 Parking Since 2015, fewer drivers are parking on neighborhood streets. Q5. Where do you typically park when you drive to work? 44% 29% 8% 7% 5% 5% 1% 2% 47% 26% 11% 9% 5% 1% 1% 40% 27% 5% 19% 5% 1% 3% Public garage or parking lot Private/employer garage or parking lot In a 2- or 3-hour on-street parking zone Neighborhood streets I move my car throughout the day It varies Caltrain parking lot Other 2017 2016 2015 Where do you typically park when you drive to work? Among SOV drivers only 2017: 590n 2016: 772n 2015: 539n 17-6393 Palo Alto TMA | 36 Parking by Worksite Type Among government workers, most park in a public garage or a private employer garage. Q5. Where do you typically park when you drive to work?Among SOV drivers: 590n 55% 22% 32% 38% 26%28% 8% 36% 1% 7% 24% 5% Government (13%) Technology (28%) Service (30%) Light office (29%) Public garage or parking lot Private/employer garage or parking lot Neighborhood streets/2-3 hour street park Numbers in parentheses represent the percentage of the sample for each respective subgroup. Where do you typically park when you drive to work? Multiple Modes of Transportation 17-6393 Palo Alto TMA | 38 Multiple Modes of Transportation The percentage of commuters using multiple modes of transportation has fluctuated since 2015. Q2. On your typical daily commute to work, do you use more than one mode of transportation? Do you use more than one mode of transportation to commute to work? 22% 24% 19% 2017 2016 2015 % Yes 17-6393 Palo Alto TMA | 39 Multiple Modes of Transportation Among those who use more than one mode of transportation to commute to work, the use of a car to arrive downtown has decreased and use of Caltrain has increased. Q3. Which mode of transportation brings you INTO Downtown Palo Alto? *“It varies” added as an option in 2017. Which mode of transportation brings you into downtown Palo Alto? 67% 9% 8% 4% 4% 3% 2% 1% 63% 12% 3% 16% 3% 2% 0% 57% 23% 4% 8% 6% 0% 1% Caltrain Car *It varies Bike Walk Bus Shuttle Taxi/Uber/Lyft/Carshare/Carpool Awareness of Palo Alto TMA 17-6393 Palo Alto TMA | 41 Awareness of Palo Alto TMA Awareness of the Palo Alto TMA has increased since 2016. The increase occurs among workers who have a favorable opinion of the TMA. Q31. Do you have a strongly favorable, somewhat favorable, somewhat unfavorable, or strongly unfavorable opinion of the Palo Alto Transportation Management Association (TMA)? If you have never heard of the Palo Alto TMA or heard of but can’t rate, please select that option. 22% 11% 30% 29% 39% 51% 9% 9% 2017 2016 Favorable Heard of but cannot rate Never heard of Unfavorable What is your opinion of the Palo Alto TMA? Mode Share Trend Data 17-6393 Palo Alto TMA | 43 Mode Share Over Time Employee size 1-25 26-100 101+ 2015 2016 2017 2015 2016 2017 2015 2016 2017 Drove alone 74%68%66%61%78%73%41%34%38% Transit 7%14%14%14%3%9%25%27%28% Walk/Bike 7%6%7%12%7%4%22%23%17% Rideshare 5%7%7%6%3%11%4%7%8% Other 8%5%7%8%8%2%7%8%10% Miles driven to work <1 to 10 10 to 30 30+ 2015 2016 2017 2015 2016 2017 2015 2016 2017 Drove alone 52%55%52%69%66%69%40%45%42% Transit 6%5%8%19%20%19%39%42%38% Walk/Bike 30%28%23%1%0%1%1%0%0% Rideshare 4%6%10%5%5%7%5%4%6% Other 7%7%6%6%8%5%15%9%14% 17-6393 Palo Alto TMA | 44 Mode Share Over Time Home Geography San Francisco Peninsula South Bay 2015 2016 2017 2015 2016 2017 2015 2016 2017 Drove alone 18%10%21%63%66%61%65%69%67% Transit 70%74%63%16%11%12%20%16%18% Walk/Bike 1%0%1%12%13%12%3%3%2% Rideshare 1%3%3%3%5%8%6%7%10% Other 10%12%13%7%5%6%6%5%4% Home Geography Palo Alto East Bay 2015 2016 2017 2015 2016 2017 Drove alone 41%36%44%76%79%66% Transit 0%1%5%3%5%12% Walk/Bike 48%47%35%0%0%2% Rideshare 5%8%10%9%5%8% Other 5%8%6%12%10%13% 17-6393 Palo Alto TMA | 45 Mode Share Over Time Age 14-29 30-39 40-49 2015 2016 2017 2015 2016 2017 2015 2016 2017 Drove alone 43%36%47%51%47%50%67%69%59% Transit 21%21%22%23%22%23%11%11%15% Walk/Bike 26%29%18%13%15%10%7%7%4% Rideshare 4%7%10%5%8%8%6%3%13% Other 5%6%4%8%8%10%9%10%8% Age 50-64 65+ 2015 2016 2017 2015 2016 2017 Drove alone 68%76%72%81%69%72% Transit 7%12%8%5%8%7% Walk/Bike 10%4%6%5%6%11% Rideshare 4%3%8%6%5%5% Other 10%5%6%3%11%5% 17-6393 Palo Alto TMA | 46 Mode Share Over Time Parents Parent Not a parent 2015 2016 2017 2015 2016 2017 Drove alone 66%70%64%50%50%52% Transit 11%9%12%20%19%22% Walk/Bike 8%8%7%19%18%12% Rideshare 7%4%11%4%7%7% Other 8%10%6%7%7%7% Work Schedule Required to start at a specific time My work schedule is flexible My schedule varies 2015 2016 2017 2015 2016 2017 2015 2016 2017 Drove alone 64%69%69%49%43%44%63%66%54% Transit 14%15%15%20%19%21%11%11%19% Walk/Bike 8%7%3%19%22%16%15%8%15% Rideshare 5%3%10%5%8%8%2%6%6% Other 9%6%4%7%8%11%8%9%6% 17-6393 Palo Alto TMA | 47 Mode Share Over Time Job Type Full time Part time More than one job 2015 2016 2017 2015 2016 2017 2015 2016 2017 Drove alone 53%52%54%75%69%70%66%77%65% Transit 19%19%20%3%3%4%4%4%11% Walk/Bike 16%15%11%8%15%9%11%10%5% Rideshare 5%6%8%7%7%9%5%3%13% Other 7%7%7%6%6%8%14%7%6% Peak Hour Commuters Yes (6-10am)No 2015 2016 2017 2015 2016 2017 Drove alone 54%52%55%57%64%67% Transit 23%21%20%7%6%7% Walk/Bike 11%13%11%22%17%10% Rideshare 6%6%8%3%4%8% Other 6%8%6%12%9%8% 17-6393 Palo Alto TMA | 48 Contact Information Tom Patras tom@emcresearch.com 614.827.9677 Doug MacDowell doug@emcresearch.com 614.827.9673