HomeMy WebLinkAboutStaff Report 6679
City of Palo Alto (ID # 6679)
City Council Staff Report
Report Type: Action Items Meeting Date: 3/14/2016
Summary Title: Transporation Demand Management Funding
Title: Local Funding Strategies for Transportation Demand Management &
Other Transportation Programs
From: City Manager
Lead Department: Planning and Community Environment
Recommendation
Staff recommends that the City Council discuss potential alternative funding strategies for
Transportation Demand Management and other local transportation programs, and refer the
matter to the Policy & Services Committee or an ad hoc committee for discussion and
development of a recommended approach.
Executive Summary
The ity ouncil’s agenda for Garch 14, 2016 includes two study sessions: one regarding the
Transportation Management Association (TMA) that has been formed to reduce single-
occupant vehicle (SOV) trips to and from Downtown, and one regarding a program of
Transportation Demand Management (TDM) measures that has been initiated to address SOV
trips to and from the Stanford Research Park.
The current item has been agendized to permit the Council to discuss transportation programs
more generally and provide follow-up direction to staff and/or to refer questions to the Policy
& Services Committee.
Background & Discussion
In February 2014, the City Council requested that staff work towards creation of a TMA for
Downtown Palo Alto, aimed at the goal of reducing SOV trips by 30 percent. The TMA was
formed as an independent non-profit organization earlier this year, with the City as an
important “large employer” oard member, and will be providing the ity Council with an
update on formation of the organization and pilot programs at a study session on March 14.
Stanford University has been working in parallel with major employers on a related strategy for
the Stanford Research Park.
TG!’s are typically funded by employers who are members of the association, with assistance
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in their formative years from local agency partners, and with funding from new development
that occurs in their service areas. TMA Board Members typically represent companies that have
a vested interest in improving the quality of transportation options for their employees and are
willing to invest in these programs.
The City of Palo Alto has an interest in seeing both the Downtown TMA and the Stanford
program succeed, and would also like to see enhanced shuttle service, transit incentives, and
other TDM programs throughout the City. The Council is scheduled to receive an update on
planning for expanded shuttle service in April or May.
The Valley Transportation Agency (VTA) and the County of Santa Clara are considering
placement of a County-wide transportation sales tax on the November 2016 ballot, which will
likely include some funding for transportation projects in Palo Alto. The City Council discussed
the County sales tax measure at meetings in August 2015 and October 2015, and on February 8,
2016.
Possible local funding mechanisms that could supplement the countywide sales tax and that
could be used to help fund TDM and shuttle programs as well as major transportation
investments like railroad grade separations include: public/private partnerships, impact fees on
new development, parking fees, assessment districts (or similar mechanisms) some form of
value capture, and/or a business tax or sales tax. Value capture is a financing method that
recovers some or all of the value that public infrastructure (e.g. railroad grade separations) or
public investments (e.g. transit) generates for private landowners. It can involve establishment
of assessment districts, development fees and incentives, or other implementing mechanisms.
The Draft Environmental Impact Report (EIR) for the Comprehensive Plan Update includes
Mitigation Measure Trans1a (p. 4.13-51), which would effectively set a “cap” on new vehicle
trips by requiring new development to meet stringent TDM performance measures and to
offset any new trips that cannot be reduced. Offsets could be accomplished by contracting with
another property owner or organization (like a TMA) or by paying an annual fee to the City for
use in reducing vehicle trips through transit and shuttle programs, rideshare incentives, bicycle
lanes, and other similar programs and improvements.
Policy Implications
Establishment of new local transportation funding mechanisms require careful thought and
input from community stakeholders; Relevant policies and programs identified in the ity’s
Comprehensive Plan include:
Policy T-2: Consider economic, environmental, and social cost issues in local
transportation decisions.
Program T-4: Consider the use of additional parking fees and tax revenues to fund
alternative transportation projects.
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Program B-1: Initiate assessment districts or other programs to facilitate neighborhood
shopping center improvements such as landscaping, parking, and access to public
transportation.
Resource Impact & Timeline
ased on the ity ouncil’s specific direction, the ity Ganager may need to return with an
estimate of consultant resources needed to complete an analysis, as well as a schedule for
requested actions.
If the City Council would like to refine the impact fee (“trip cap”) approach included in the
Comprehensive Plan Update Draft EIR, comments should be provided at the Draft EIR hearing
scheduled for April 25, 2016.
If the Council would like to consider placement of a local tax of some sort on the November
ballot, the ballot language would need to be adopted prior to ouncil’s summer break
beginning July 2, 2016. Council may wish to explore polling or other survey methods in advance
of its decision, to best inform what approach for a tax on business, for example, should take
and timing for voter approval.
Environmental Review
This is a discussion item that may result in direction to staff and/or a referral to the Policy &
Services ommittee; Eeither are “projects” requiring review pursuant to the California
Environmental Quality Act.
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