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HomeMy WebLinkAboutStaff Report 6823 City of Palo Alto (ID # 6823) City Council Staff Report Report Type: Action Items Meeting Date: 6/13/2016 City of Palo Alto Page 1 Summary Title: TMA Funding Agreement Title: Approval of Funding Agreement with the Palo Alto Transportation Management Association (PATMA) and Silicon Valley Community Foundation in the Amount of $100,000 for Fiscal Year 2017 for Pilot Programs and Discussion of the PATMA Draft Strategic Plan From: City Manager Lead Department: Planning and Community Environment Recommendation Staff recommends that the City Council approve and authorize the City Manager or designee to execute the funding agreement between the City of Palo Alto, the Silicon Valley Community Foundation, and the Palo Alto Transportation Management Association (Attachment A). Executive Summary With initial direction from City Council in 2013, staff has been actively working on developing 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, and staff began work with a consultant team on the development of the organization in 2014. The City of Palo Alto also programmed $100,000 in pilot funding for TMA programs in Fiscal Year 2016. The Palo Alto TMA incorporated as a non- profit in January 2016, and is seeking 501 (c)(3) status. To address concerns expressed by the City Council regarding the TMA’s structure and transparency, and to define an oversight role for the City, a funding agreement has been created to formalize the provision of the City funding for TMA programs. This report summarizes the attached funding agreement between the City of Palo Alto, the Silicon Valley Community Foundation, and the Palo Alto Transportation Management Association (TMA), including the use and restrictions of City funds, and provides an overview of the TMA’s draft City of Palo Alto Page 2 business plan, which is being created to govern the activities of the TMA in the first two years of its operation. Background & Discussion City Council heard an update on the formation of the TMA at the March 14, 2016 meeting (Attachment B). The staff report for that update contains detailed information on the background and formation of the TMA to date. As a non-profit, the TMA has entered into a Customized Philanthropy Services Agreement with the Silicon Valley Community Foundation (SVCF). This agreement stipulates that the SVCF holds an account for the TMA that serves to accept donations that are solely for the use of TMA activities. As the holder of the account, the SVCF has legal discretion and control over the account. Donations to SVCF are tax deductible. The City of Palo Alto has programmed $100,000 in FY2016 funding for the TMA to fund initial pilot programs and to supplement start-up costs for the organization provided through the City’s contract with its consultants. Given the nature of the agreement with the SVCF, these funds will be deposited into the account held by the SVCF for the TMA. The SVCF will grant these funds to the TMA. At the March 14 City Council study session, several Councilmembers expressed concern regarding the use of the funding and transparency from the TMA, and expressed a desire for the City to maintain an oversight role in the use of the funding. To address these concerns, a funding agreement was created between the City, the TMA, and the SVCF. That funding agreement is presented for approval tonight (Attachment A). Once in place, the agreement would be valid through July 1, 2017, and would govern the $100,000 identified by the City of Palo Alto for use by the TMA and included in the Fiscal Year 2016 Adopted Operating Budget. 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. To address Council concerns, 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. At this time, the TMA Board of Directors has, at City Council request, developed a draft two- year business plan that identifies the resources required to fund activities (Attachment C). The draft business plan outlines the key objectives identified by the TMA to guide the organization in meeting the City’s goal of reducing single occupant vehicle (SOV) commutes to downtown by City of Palo Alto Page 3 30%. The objectives address topics including program development, partnership, advocacy, information and outreach, and achieving a sustainable budget. Notably, the business plan identifies the top priorities for TMA pilot programs for the first several years of operation:  Transit subsidies: With a goal of reaching 1,000 employees, this program would provide employees with a full transit subsidy for an introductory period and reduce to a lesser subsidy on an on-going basis.  Carpool subsidies: Targeting a goal of 300 employees, the carpool program would subsidize carpools to and from Downtown Palo Alto.  Low-Income programs: The goal of these programs is to make sustainable transportation options more affordable and available for low-wage workers in Downtown Palo Alto. As part of the draft business plan, and in response to City Council input at the March 14 study session, the Board has identified several budget scenarios that would achieve trip reduction in Downtown Palo Alto through various levels of funding. The draft budget proposals and draft operating budget for the TMA, contained in Attachments D and E, detail estimated program costs to achieve the 30% reduction in trips in 3 years through an aggressive budget and timeline, and over 5 years in a more conservative budget and timeline. The budget also includes a baseline scenario denoting potential achievements with a minimum of continued funding of $100,000 annually. Policy Implication 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 programs to reduce auto use at both local and regional levels. Resource Impact The Fiscal Year 2016 Operating Budget contains $100,000 for TMA pilot programs. No additional funding resources are required at this time. Since the end of the fiscal year is quickly approaching, staff will request reappropriation of this funding, making it available once the agreement is in place. Any additional funds made available in the FY17 budget would require an amendment to the agreement or a separate agreement. Timeline City of Palo Alto Page 4 The TMA Board of Directors expects to roll-out the first pilot programs in the summer of 2016. Other programs will be contingent on funding and the direction of the TMA Board. Pursuant to the terms of the funding agreement, the Board will provide a written update to the City Council six months after the agreement is signed. Attachments:  Attachment A: TMA Funding Agreement (PDF)  Attachment B: March 14, 2016 TMA Update to Council (PDF)  Attachment C: Draft TMA Business Plan (PDF)  Attachment D: Draft TMA Budget Scenarios (PDF)  Attachment E: Draft TMA Operating Budget (PDF) 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 Agreement to provide funding for transportation demand management services (this " Agreement")is made effective as ofJune ,2016 ("Effective Date"),by and between theCity of Palo Alto,a California chartered municipal corporation ("City"),the Palo Alto Transportation Management Association,a California nonprofit public benefitcorporation ("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 hasbeen actively engaged in developing Transportation Demand Management (TDM) strategiesto encouragealternativesto solo driving to address Palo Alto's growing traffic and parkingconcerns. 2. The City engaged Moore Iacofano Goltsman,Incorporated ("MIG"),a consultant groupwith significantexperiencedesigning Bay Area Transportation Management Associations (TMA's),to assistin forminga TMA.The Palo Alto Transportation Management Association (PATMA)was incorporated on January 1,2016. 3.The Cityhasan interest inthe success ofthePATMA,and hasmade funding available for technical support during the start-up phase ofthe organization usingthe funds set aside for the MIG contract.The City hasalso provided funding for asurvey of Downtownemployee commute patterns,and seeks to support pilot programs ofthePATMA through thisagreement. 4. SVCF hasenteredintothat certain Customized Philanthropy ServicesAgreement with PATMA (the "CPS Agreement"),pursuant to which SVCF holds and administers a fund restricted to specific charitable purposes set forth in such agreement ("Restricted Account"). SVCFhas legal discretion and control overthe Restricted Account. 5.The PATMA intends to seek funding from publicandprivate foundations,private businesses,public agencies andother financial supporters. 6. The mission statementofthe PATMA isto reduceSingle OccupancyVehicle (SOV) trips,traffic congestion and demand for parking bydelivering targeted transportation solutions to the Downtown area's diverse range ofemployers,employees,visitors and residents.It also serves as a one-stop transportation information resource for the broader community,provides a forum for community dialogue,and isan active voicein local and regional transportation issues. While the primary focus of the PATMA isthe Downtown population whose travel choices have the highest impacts,its programs and services mayextend beyond these constituents. 160517jb 0131512 Attachment A 7.The Parties agree to enter into this Funding Agreement to facilitate the immediate implementation of pilot programs to reduce single occupancy vehicle (SOV)trips by downtown workers in Palo Alto. AGREEMENT NOW,THEREFORE,forgood and valuable consideration,thereceipt and adequacy of which are hereby acknowledged,the Parties hereby agreeas follows: 1.Recitals.The recitals set forth above are true and correct and are hereby incorporated into this Agreementintheir entirety. 2.Term.Thetermofthis Agreement shallbefromthe Effective Date through July 1,2017. 3.City Deposit.TheCityshalltransferthesumof$100,000 ("CityFunds")to SVCF,to be depositedintothe Restricted Accountfor useforthe purposesdescribed inthis Agreement. 4. Use ofCity Funds.SVCFshall holdand administerthe City Fundspursuantto 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. SVCF shall track the City Funds separately from other amounts held in the Restricted Account. 5.Strategic Planand Budget.Within 90 days ofthe EffectiveDate,PATMA shallprovidea detailedstrategic planand budgettothe City.Thestrategicplanmayutilizescenariosto illustratethe returnon investmentassociatedwithdifferent funding levels. 6.Reporting Requirement.PATMAshall providethe CityCouncilwith bi-annualwritten reports ontheimplementation and effectiveness ofpilot programs funded bythe City,including quantitative measures and cost per employee mode shift. 7.Public Meeting Requirement.The funding isexpressly contingent on PATMA's agreement toprovide 72 hours written advance notice tothe public ofallBoard of Director meetings and to allow members ofthe public to attend all such Board of Director meetings. 8.Work Product.PATMA,shall ensure any written document orother work product developed with funds received through this Agreement ismade available tothe public to the extent not otherwise prohibited by law. 9.Audits.PATMA and SVCF will make available all financial records related to the funds and the use of the funds during the term ofthis Agreement and for three (3)years thereafter.PATMA and SVCF further agreeto maintain and retain such records forat leastthree (3)years aftertheexpiration or earlier termination ofthis Agreement. 160517jb0l3I512 10.Indemnity.To the fullest extent permitted by law,PATMA shall protect,indemnify,defend and hold harmless CITY and itsCouncil members,SVCF,and each of the City'sand SVCF's officers,employees and agents (each an"Indemnified Party")from and against any and all demands,claims,or liability ofany nature,including death orinjury to any person,property damage oranyother loss,including all costs and expenses of whatever nature including attorney's fees,experts fees,court costs and disbursements ("Claims")resulting from,arising out ofor inany mannerrelated to performance or nonperformance by PATMA,itsofficers, employees,agentsor contractorsunderthis Agreement,regardless ofwhetheror not it iscaused in part by an Indemnified Party. Notwithstandingthe above,nothing inthis section shall beconstruedto require PATMAto indemnifyan Indemnified Party from Claims arising from the active negligence, sole negligence or willful misconduct ofan Indemnified Party. The provisions ofthis section shall survive the expiration or early termination ofthis Agreement. 11.Insurance.PATMA, at itssole cost and expense, shall obtain and maintain, in full force and effectduringtheterm ofthis Agreement,the insurance coveragedescribed inExhibit "A". PATMA and its contractors,ifany, shall obtain a policy endorsement naming CITY as an additionalinsuredunderanygeneral liabilityor automobilepolicyor policies. All insurance coverage required hereunder shallbe provided through carriers with AM Best's Key Rating Guide ratings of A-:VII or higher which are licensed or authorized to transact insurance businessinthe State ofCalifornia.Anyandall contractors ofPATMA retained to perform Services under this Agreement will obtain and maintain,in full force and effect during the term ofthis Agreement,identical insurance coverage,naming CITY asanadditional insured under such policiesas requiredabove. 12.Other Requirements: (a)Strategic Planning Session.PATMA shall conduct astrategic planning session within 90 days ofthe date ofthis Agreement,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 inprogram development and marketing.PATMA agrees not to share any non-public data with others and will take steps to ensure the continued confidentiality ofanysuch non-public data. (c)Performance Monitoring.The City may implement its own performance monitoring ofCity 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 ofthe agreed to projects until the funds are expired. 160517jb 0131512 (e)Board Members.The City may request that the PATMA Board be expanded to include additional members,possibly including residents and additional City representation. 13.Notices. All notices hereunder willbegivenin writing and mailed,postage prepaid,by certified mail, addressed as follows: To CITY: Office ofthe City Clerk City ofPalo Alto Post Office Box 10250 Palo Alto,CA 94303 With a copy to the Purchasing Manager To PATMA: Palo Alto Transportation Management Association c/o Wendy Silvani 791 MandanaBlvd. Oakland,CA 94610 To SVCF: Silicon ValleyCommunityFoundation Attn:Michelle Fries on behalfofPATMA,Fund #5495 2440 West El Camino Real,Suite 300 Mountain View,CA 94040 14.AuthoritytoBind.The individuals executing this Agreement represent and warrant that they have the legal capacity and authority to do so on behalf oftheir respective legal entities. 15.Counterpart Signatures.This Agreement may be signed in multiple counterparts,which shall,when executed by all the parties,constitute asingle binding agreement. 16.Applicable Law.This Agreement will begoverned by the laws ofthe State of California. 17.Venue.In the event that an action isbrought,the parties agree that trial ofsuch action will be vested exclusively in the state courts ofCalifornia in the County ofSanta Clara,State of California. 18.Amendments.This document represents the entire and integrated agreement between the parties and supersedes all prior negotiations,representations,and contracts,either written ororal. This document may be amended only by awritten instrument,which is signed by the parties. 160517jb0131512 19.Severability.Ifacourt ofcompetent jurisdiction finds or rules that any provision ofthis Agreement or any amendment thereto isvoid or unenforceable,the unaffected provisions ofthis Agreement and anyamendments thereto will remain in full force andeffect IN WITNESS WHEREOF,the Parties have executed tins Agreement as ofthe Effective Date. PALO ALTO TRANSPORTATION MANAGEMENT ASSOCIATION: Jjtks^r Title:gJlACr fcJc*\b TftAr 'T SILICON VALLEY COMMUNITY FOUNDATION: Name:Mari HIen L^008 r^(^Bustno^r^eiopmentandBn^O^ CITY OF PALO ALTO: James Keene APPROVED ASTO FORM: CoraSilver Senior Asst City Attorney 19.Severability.Ifa court of competent jurisdiction finds or rules that any provision of this Agreement oranyamendment thereto is void or unenforceable,the unaffected provisions ofthis Agreement and any amendments thereto will remain in full force and effect. IN WITNESSWHEREOF,the Partieshaveexecutedthis Agreementas ofthe EffectiveDate. PALO ALTO TRANSPORTATION MANAGEMENT ASSOCIATION: Name: Title: SILICON VALLEY COMMUNITY FOUNDATION: fj Xl Mari Ellen LoijensName:J „., Chief Business,Development and Brand OfficerTitle: CITY OF PALO ALTO: James Keene City Manager APPROVED AS TO FORM: Cara Silver Senior Asst. City Attorney 160517jb 0131512 EXHIBIT "A" INSURANCE REQUIREMENTS CONTRACTORSTO THE CITY OFPALO ALTO (CITY), AT THEIRSOLE EXPENSE,SHALL FORTHETERM OFTHE 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 THESTATE OFCALIFORNIA. AWARD IS CONTINGENTON COMPLIANCEWITH CITY'S INSURANCEREQUIREMENTS.AS SPECIFIED,BELOW: REQUIRED TYPE OF COVERAGE REQUIREMENT MINIMUM LIMITS EACH OCCURRENCE AGGREGATE YES YES WORKER'SCOMPENSATION EMPLOYER'S LIABILITY STATUTORY STATUTORY YES GENERAL LIABILITY.INCLUDING PERSONAL INJURY,BROADFORM PROPERTY DAMAGEBLANKET 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 ALLOWNED,HIRED,NON-OWNED BODILY INJURY EACH PERSON EACHOCCURRENCE PROPERTY DAMAGE BODILYINJURYANDPROPERTY DAMAGE,COMBINED $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 Sl.000.000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 YES PROFESSIONAL LIABILITY,INCLUDING, ERRORS ANDOMISSIONS. MALPRACTICE (WHEN APPLICABLE), ANDNEGLIGENTPERFORMANCE 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,IFANY,BUT ALSO.WITH THE EXCEPTION OFWORKERS'COMPENSATION,EMPLOYER'S LIABILITY AND PROFESSIONAL INSURANCE,NAMING AS ADDITIONAL INSUREDS CITY,ITS COUNCIL MEMBERS,OFFICERS,AGENTS, AND EMPLOYEES. II. III. INSURANCECOVERAGE MUST INCLUDE; A. B. A PROVISIONFOR A WRITTEN THIRTY (30) DAY ADVANCE NOTICETO CITY OFCHANGE IN COVERAGEOR OFCOVERAGECANCELLATION;AND A CONTRACTUAL LIABILITY ENDORSEMENT PROVIDING INSURANCE COVERAGE FOR CONTRACTOR'S AGREEMENTTO INDEMNIFY CITY. C.DEDUCTIBLE AMOUNTS IN EXCESS OF $5,000 REQUIRE CITY'SPRIOR APPROVAL. CONTACTOR MUST SUBMIT CERTIFICATES(S)OF INSURANCE EVIDENCING REQUIRED COVERAGE. 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 ORCONTRIBUTING WITH ANYOTHER INSURANCE CARRIED BY ORFOR THE BENEFIT OF THE ADDITIONAL INSUREDS 160517jb 0131512 B.CROSS LIABILITY THE NAMING OF MORE THAN ONE PERSON, FIRM, OR CORPORATION AS INSUREDS UNDER THE POLICY SHALLNOT, 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 UNDERTHIS 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 DATEOF 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 ANDCONTRACT ADMINISTRATION CITY OF PALOALTO P.O.BOX 10250 PALO ALTO,CA 94303 160517jb0131512 City of Palo Alto (ID # 6427) City Council Staff Report Report Type: Study Session Meeting Date: 3/14/2016 Summary Title: Downtown Transportation Management Association Study Session Title: Update on the Formation of the Downtown TMA (Transportation Management Association) From: City Manager Lead Department: Planning and Community Environment Recommendation Staff recommends that the City Council receive and review the report on the Palo Alto Transportation Management Association. This is a study session, and no action is requested. Executive Summary Since 2013, the City has been actively engaged in developing Transportation Demand Management (TDM) strategies to encourage alternatives to solo driving to address Palo !lto’s growing traffic and parking concerns. A City Council colleagues memo dated October 3, 2013 resulted in Council direction to convene a study session and develop an initial recommendation related to goals of reducing traffic and parking demand. On December 9, 2013 Council held a study session with representatives of Google, Contra Costa Centre and Stanford University, all considered Bay Area leaders in applying TDM strategies, to better understand their respective programs and their potential application to Palo !lto’s challenges. The ity ouncil subsequently requested a staff analysis and recommendation regarding establishment of a Transportation Management Association (TMA) for Palo Alto, and on February 24, 2014, directed staff to move forward with the steps necessary to form the organization. The Transportation Management Association (TMA) Steering Committee, a consortium of local employers (including the City of Palo Alto) with resident representatives, worked through 2015 to develop the vision, mission and goals intended for a new TMA. Led by a consultant team with significant experience in developing TMAs in the bay area, the team conducted the first comprehensive commute survey for Downtown, discussed potential funding sources for City of Palo Alto Page 1 Attachment B ongoing programs, the need to provide services for lower wage workers in the Downtown, a variety of rideshare pilot programs and the preferred structure for TMA formation. The group voted in November to incorporate as a 501(c)3 non-profit and will have a fiscal sponsor who will collect monies on behalf of the organization, the Silicon Valley Community Foundation (SVCF). The TMA had its first official Board meeting on January 28th, and this report summarizes some of the key activities of the TM! Steering ommittee and the oard’s plan for action in 2016. As a major employer Downtown, the City is a key member of the TMA Board of Directors, and its input and participation will be critical to the TM!’s operations and success. Background & Discussion What is a TMA? A TMA is a business-member funded organization that develops, markets, manages and advocates for effective transportation programs. TMAs are formed in a variety of ways, but they generally share the common goals of reducing single-occupant vehicle trips, reducing congestion and demand for parking, and improving quality of life by reducing greenhouse gas emissions. Some other benefits of TMAs include: - TM!’s can provide a comprehensive approach to managing transportation needs in a particular area, and a framework for multiple constituents to work collaboratively on these solutions. -TM!’s can fund and offer branded services to both residents and commercial businesses cost-effectively and efficiently through a network of alliances and partnerships. Providing a one-stop resource with consistent messaging and promotion is a hugely important ‘customer service’ factor that affects awareness and utilization of TDM programs and services. In the larger context, having a TMA positions Palo Alto to work cooperatively with neighboring cities and other agencies in providing a flexible array of programs and services. While the Palo Alto TMA will initially be focused on the Downtown area, transportation programs are by nature connective and provide benefit to areas outside their targeted region. Because travel routes used by residents, employees and visitors typically cross neighborhood and city boundaries, having a TMA that recognizes key linkages is critical to developing quality programs and services. For example, Palo !lto’s TM! was developed with the idea of initially developing programs to support Downtown employee commutes, but this focus will also provide reciprocal benefit to Palo Alto Downtown residents who may be travelling the opposite way to work; e.g. to worksites in neighboring cities. City of Palo Alto Page 2 An effective TMA can have significant measurable benefits such as:  Reducing the number of single-occupancy-vehicle (SOV) trips made within and through Palo Alto, which reduces traffic congestion and the demand for parking;  Reducing the need to build new parking facilities;  Reducing total vehicle miles traveled (VMT);  Reducing greenhouse gas emissions generated both locally and at the regional level, which contributes to Palo !lto’s sustainability goals. A TMA also provides a forum for public and private entities and businesses of all sizes to work together on transportation programs. Generally, larger companies fund the majority of the cost of programs for the benefit of smaller companies. Because larger companies have more employees and hence contribute more to traffic congestion, they have more of a vested interest to work towards reducing single occupant vehicle trips. TM!’s are structured in a variety of ways. Some operate with a membership- for- services model, where a company pays membership dues based on its size and business category. Some TM!’s sell access to a collection of programs available at different levels of financial support (bus services, rideshare discounts, carshare programs, or discounted transit passes, as examples). Others receive funding from their cities, counties, and other sources and provide information and some services to all companies within the TM!’s service area. Still others are hybrids, receiving some public and some private funding- providing some ‘free’ services to everyone and charging for other programs. Some TM!’s (as well as Transportation programs such as Stanford’s) receive funding from parking fees for their TDM programs and services. Formation of the Palo Alto TMA The ity engaged a consultant group with significant experience designing ay !rea TM!’s- MIG with TMA expert Wendy Silvani. This team recommended that Palo Alto follow a standard approach of engaging a Steering Committee which would develop a work plan, mission statement for the TMA, evaluate pilots for start-up programs, and propose a structure for the TM!’s ultimate oard of Directors. !t the request of the ity, this Steering Committee, a consortium of 12+ local employers, community and residential representatives, and the City of Palo Alto, worked through 2015 to develop the vision, mission and goals for the new TMA. Last May, this team partnered with EMC research to conduct the first comprehensive commute survey for Downtown which provided the basis for the TM!’s initial priorities. The group also discussed potential funding sources for ongoing programs, the need to provide services for lower wage workers in the Downtown, and learned about a variety of rideshare pilot programs. City of Palo Alto Page 3 It determined the preferred structure for TMA formation and voted in November to incorporate as a 501(c)3 non-profit and has a fiscal sponsor who will collect monies on behalf of the organization, the Silicon Valley Community Foundation (SVCF). This structure will enable the TMA to seek funding from many public and private foundations and other financial supporters; it also gives the new TMA and its supporters the assurance of professional accounting, reporting and other administrative management. The TMA officially incorporated at the start of January and had its first official Board meeting on January 28th, 2016. Structure of the Palo Alto TMA Board Based on Business Registry data, employers with 100+ employees account for over 70% of all employees who work in Downtown Palo Alto. These companies have the greatest potential to fund and adopt TDM programs that will make a difference in reducing SOV commutes and parking demand. These companies are of sufficient size to be able to take advantage of bulk transit pass programs, and have budgets to fund TDM programs for their employees. The 2015 commute survey results also indicated that employees who work for larger companies are among the ‘most likely’ to change behavior – they live in places where transit and other non- SOV commuting is an option and they work schedules conducive to using alternatives, etc. The initial structure of the Palo Alto TMA Board has 3 large companies (300+ employees based in Palo Alto) - the City, Google, and Palantir; two medium sized companies (the Garden Court hotel and IDEO), and one small company (Philz Coffee). This ratio reflects the Business Registry data; it is flexible and designed to be inclusive, but also to ensure Board members support the TMA at a level that will provide a basis for the TMA to be successful through their financial commitments. Although Google does not have employees in Downtown currently, they are an active regional partner (they have offices in Palo Alto in the Research Park) and have significant experience in developing transportation programs which achieve sizeable SOV reduction. In addition, while the focus of the TMA is initially in the Downtown areas, the Steering Committee acknowledged that regional commute factors influence the Downtown and ultimately the focus of the TMA may expand beyond these boundaries. There are also Google employees who are residents of Downtown that could use TM! services in the “empty” direction (e.g. heading out of Downtown), which makes the services more efficient and effective. Financial Contributions and Board Size The Steering ommittee’s consultant was able to provide recommendations from an attorney who has worked on establishment of many similar organizations, and that attorney ultimately City of Palo Alto Page 4 drafted the incorporation documents and bylaws. The consultant and attorney strongly recommended that all Board members be required to make a contribution to the organization to minimize risk exposure for the organization, a contribution which is separate from membership dues which would be paid by organizations who would become members of the TMA and take advantage of the services that it sells. The Steering Committee was unanimous in not wanting the TMA to spend time trying to sell and collect nominal ‘dues’ from the many small businesses, or searching for the basics – i.e., the salary of its Executive Director. Instead, they want the Director to focus on funding for programs, marketing and managing those programs. The current Board is deliberately small, with six members who are committed to the successful rollout of programs on a ‘fast track’ that will benefit the entire downtown community. As the TMA develops, it can easily increase the size of its Board to include others. Currently, the Large Employer Board contribution is $10,000 annually, the Medium-Sized Employer Board contribution is $2,500 annually, and the Small Employer Board contribution is $1,000 annually. The Board is expected to set membership dues within the next several weeks. Advisory Committee(s) The Board will encourage participation from other companies in the TMA through an Advisory Committee. The structure of how this committee would operate is yet to be determined; it could take the shape of committees for various projects (i.e., those interested in a Lyft pilot or just the transit pass program). The Steering Committee expects that the structure for the Advisory Committee will evolve over the next few months. The requirement for a financial contribution/membership fee to the TMA would not apply to an advisory committee to ensure participation by anyone who is interested. Feedback Mechanisms The TMA Board will have feedback mechanisms for all TMA-sponsored programs so anyone can provide input, suggestions, and ideas based on their experience as the Board designs, evaluates, and refines programs and services. The focus of the TM!’s initial programs will be on offering direct subsidies to many employees whose employers can’t provide commute benefits because they are ‘too small’, and encouraging the 100+ employers for whom offering transportation benefits is realistic to do so. Other Examples It is commonplace for a City to have a seat on the Board of the TMA and to provide funding. The following TMAs are Bay Area examples: 1. City of Emeryville: The City of Emeryville provided the bulk of funding for the first 3 years for the Emery-Go-Round TMA at 90%, 75%, then 50% of the total budget, and was City of Palo Alto Page 5 also on the Board. When the TMA became part of the PBID, the City became ex-officio on the Board (no vote). 2. San Mateo Corridor TMA: The City of San Mateo is on the Board and helps fund the TMA. 3. Alameda Landing TMA: The City of Alameda has 2 representatives on the Board and is providing funding for the TMA. The ity ouncil will receive an annual report on the TM!’s activities each year. The ity’s funding will be important in initial years for the launch of TMA programs, and the City Council can provide requested funding concurrent with requests for expansion of the Board, establishment of the Advisory Committee, or pilot projects, as examples. In this way the City can influence the TM!’s programs and direction. 2016 Board Workplan While the TMA is still in fledgling stage, the group agreed to continue to work with the MIG/Silvani consulting team while recruiting for an Executive Director for the organization. Top priorities for the Board include: 1. Recruitment of an Executive Director. The ED will replace the consultant team hired by the City as the leader of the organization. While the Board members are not expected to have TDM experience, this will be a key component of the employment requirements for the ED 2. Launch of a pilot program that subsidizes low-income Downtown workers with transit passes. Prior to the incorporation of the organization, the TMA Steering Committee spent several months exploring a variety of pilot programs to determine which offered the most immediate value to the Downtown, and a low-income worker transit pass subsidy program was ultimately determined to have the most immediate impact. Stanford’s Sustainable ities class has been working with the TM! to develop the parameters of a pilot transit pass program. The students speak Mandarin and Spanish and will be able to support outreach to workers who require those languages. This program could launch as early as April or May depending on the position of the Board. The Board will be discussing the details of the proposal at their meeting on March 3. SOV Trip Goal Reduction The TMA Steering Committee felt that specific numeric goals should be set for individual programs (i.e., targeting a number of employees for the low income transit subsidy; another number for another pilot program such as Lyft subsidies, etc.) This will allow the TMA to adjust/refine/create programs against specific participation, and help the City achieve its 30% reduction goal. On an annual basis, a 30% reduction from the current overall 55% SOV trip rate is 1650 people. Broken up over a 4 year period, that equates to 412 people a year; over 5 years City of Palo Alto Page 6 330 people. The TMA Board believes that achieving this type of reduction over a 4-5 year period is a reasonable target. Policy Implications Development of a 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 programs to reduce auto use at both local and regional levels. Resource Impact In order to submit for IRS incorporation, the TMA developed a draft budget to guide its development. Projected expenses for 2016 are listed below. The TMA is a separate organization with its own revenues and expenses, so while the City will be asked to contribute resources to the TMA for program development, ultimately the organization will have multiple sources of revenue. The TM!’s proposed budget is shown in Table 1, below. Table 1. TMA Proposed Draft Budget* Executive Director Salary (Part-time, assumed starting in June) $40,000 Annual Commute Survey, included in existing consultant contract $33,000 SVCF processing fees, included in existing contract $11,400 Legal Fees for IRS filing, included in IRS contract $2,500 Low Income Transit Pass Program – assumes 120 passes per month @ $75 each for 6 months; program still in development $54,000 Marketing $10,000 General Office Supplies $2,500 Miscellaneous and Other Programs $28,000 TOTAL $182,000 *This budget estimate is for the independent non-profit TMA and is not meant to reflect City budgetary commitments or requests. City of Palo Alto Page 7 Staff will be making a budget request for $100,000 to City Council to support the TMA as part of the FY2017 budget process. This $100,000 includes $90,000 to cover overhead expenses and other costs noted above, and the requested $10,000 large employer contribution. Additionally, City staff are working on an agreement with the TMA to provide up to $100,000 in funds that were budgetted by the City in FY2016 for TMA pilot programs. Funded pilot programs could include the transit-pass subsidy program, a pilot with Lyft, and possibly development of a “commuter wallet” Mobility !s ! Service (MaaS) product. Several smaller employers have also made contributions amounting to $32,000 for development of a low-income transit subsidy program, and Google, Palantir and the Garden Court Hotel have pledged their Board Contributions (total $22,500). Timeline The TMA officially launched in January 2016. It is expected to roll-out a low-income transit subsidy in April or May of 2016. Other programs will be contingent on funding and the direction of the TMA Board. Attachments:  Attachment A: EMC Final Report on Downtown Survey (PDF)  Attachment B: Palo AltoTMA Board Packet Feb16th (PDF) City of Palo Alto Page 8 Do w n t o w n P a l o A l t o Mo d e S p l i t S u r v e y Ma y 2 0 1 5 "UUBDINFOU" Me t h o d o l o g y ` 1, 1 7 3 s u r v e y s c o n d u c t e d w i t h e m p l o y e e s a t b u s i n e s s e s l o c a t e d w i t h i n a n a r e a o f Do w n t o w n P a l o A l t o b o u n d b y E l C a m i n o Re a l , W e b s t e r S t r e e t , E v e r e t t A v e n u e , a n d Fo r e s t A v e n u e . ` Th e s u r v e y p a r t i c i p a t i o n r a t e w a s 4 4 % , w h i c h r e p r e s e n t s t h e t o t a l n u m b e r o f c o m p l e t e d su r v e y s c o m p a r e d t o t h e t o t a l n u m b e r o f e m pl o y e e s a t p a r t i c i p a t i n g b u s i n e s s e s . T h e ov e r a l l r e s p o n s e r a t e w a s 1 2 % , w h i c h r e p r e s e n t s t h e t o t a l n u m b e r o f c o m p l e t e d s u r v e y s co m p a r e d t o t h e t o t a l n u m b e r o f e m p l o y e e s i n D o w n t o w n P a l o A l t o . ` A s t r a t i f i e d r a n d o m s a m p l e o f w o r k s i t e s w a s p u l l e d b y w o r k s i t e s i z e , i n c l u d i n g s m a l l , me d i u m a n d l a r g e b u s i n e s s e s . S a m p l e d w o r k s i t e s w e r e c o n t a c t e d d i r e c t l y t o i d e n t i f y a n d re c r u i t a n o n s i t e s u r v e y c o o r d i n a t o r w h o d i s t ri b u t e d t h e s u r v e y s t o a l l e m p l o y e e s a t t h e i r re s p e c t i v e w o r k s i t e s . ` Th e s u r v e y w a s o f f e r e d i n o n l i n e a n d p a p e r fo r m a t s f o r e m p l o y e e s o f b u s i n e s s e s w i t h 5 or m o r e e m p l o y e e s , a n d w a s c o n d u c t e d b y t e l e p h o n e w i t h e m p l o y e e s o f b u s i n e s s e s w i t h 4 o r f e w e r e m p l o y e e s . ` Da t a c o l l e c t i o n b e g a n M a y 4 th an d e n d e d t h e w e e k o f M a y 2 5 th . E a c h r e s p o n d e n t w a s as k e d c o m m u t e m o d e q u e s t i o n s f o r o n e c a l e n d a r w e e k p r e v i o u s t o t h e d a t e o n w h i c h th e y t o o k t h e s u r v e y . 15 - 5 5 9 1 P a l o A l t o T M A | 2 Do w n t o w n P a l o A l t o Fo r t h i s s t u d y , D o w n t o w n P a l o A l t o w a s d e f i n e d a s t h e a r e a b o u n d b y E l C a m i n o R e a l , We b s t e r S t r e e t , E v e r e t t A v e n u e , a n d F o r e s t A v e n u e . 15 - 5 5 9 1 P a l o A l t o T M A | 3 Mo d e s o f Tr a n s p o r t a t i o n Mo d e S h a r e - O v e r a l l Mo r e t h a n h a l f ( 5 5 % ) o f t h e t r i p s t a k e n i n t o d o wn t o w n a r e s i n g l e - o c c u p a n t - v e h i c l e t r i p s . %’ s r e f l e c t t h e t o t a l a m o u n t o f t r i p s t a k e n du r i n g t h e w e e k Dr o v e a l o n e Ca l t r a i n Wa l k e d Ro d e a b i c y c l e Ca r p o o l e d Wo r k e d r e m o t e l y Ot h e r 55 % 17 % SO V T o t a l : 55 % 8% In c l u d e s d r i v e a l o n e a n d m o t o r c y c l e Tr a n s i t T o t a l : 1 9 % In c l u d e s b u s a n d r a i l 7% No n - m o t o r i z e d T o t a l : 1 5 % In c l u d e s w a l k i n g a n d r i d i n g a b i c y c l e 5% 5% 3% Q1 . T h i n k i n g b a c k t o l a s t w e e k , wh a t m o d e o f t r a n s p o r t a t i o n d i d y o u u s e t o c o m m u t e T O do w n t o w n P a l o A l t o ? 15 - 5 5 9 1 P a l o A l t o T M A | 7 Mo d e S h a r e b y W o r k s i t e S i z e As b u s i n e s s s i z e d e c r e a s e s , t h e pe r c e n t a g e o f S O V t r i p s i n c r e a s e s . Dr o v e a l o n e Ca l t r a i n Wa l k / B i k e Ca r p o o l e d Wo r k e d r e m o t e l y / O t h e r 74 % 61 % 41 % 25 % 22 % 14 % 12 % 8% 7% 7% 8% 7% 6% 5% 4% 1- 2 5 e m p . ( 2 4 % ) 26 - 1 0 0 e m p . ( 3 2 % ) 10 1 + e m p . ( 4 4 % ) Bu s i n e s s S i z e b y N u m b e r o f E m p l o y e e s Nu m b e r s i n p a r e n t h e s e s r e p r e s e n t t h e p e r c e n t a g e o f t h e s a m p l e fo r e a c h r e s p e c t i v e s u b g r o u p . Q1 . T h i n k i n g b a c k t o l a s t w e e k , w h a t mo d e o f t r a n s p o r t a t i o n di d y o u u s e t o c o m m u t e T O d o w n t o w n P a l o A l t o ? 15 - 5 5 9 1 P a l o A l t o T M A | 8 Mo d e S h a r e b y S e l f - R e p o r t e d C o m m u t e D i s t a n c e As t h e d i s t a n c e f r o m D o w n t o w n i n c r e a s e s , m o d e s h i f t s t o w a r d t r a n s i t . Dr o v e a l o n e Ca l t r a i n Wa l k / B i k e Ca r p o o l e d Wo r k e d R e m o t e l y / O t h e r 69 % 52 % 40 % 38 % 30 % 19 % 11 % 7% 6% 5% 6% 5% 5% 4% 1% <1 t o 1 0 ( 4 5 % ) 10 t o 5 0 ( 3 5 % ) 50 + ( 2 0 % ) Di s t a n c e T r a v e l e d i n M i l e s (s e l f - r e p o r t e d ) Nu m b e r s i n p a r e n t h e s e s r e p r e s e n t t h e p e r c e n t a g e o f t h e s a m p l e fo r e a c h r e s p e c t i v e s u b g r o u p . Av e r a g e D i s t a n c e T r a v e l e d : Ov e r a l l = 1 5 . 8 m i l e s | S O V = 1 5 . 9 m i l e s | T r a n s i t = 2 3 . 5 m i l e s Q1 . T h i n k i n g b a c k t o l a s t w e e k , w h a t mo d e o f t r a n s p o r t a t i o n di d y o u u s e t o c o m m u t e T O d o w n t o w n P a l o A l t o ? 15 - 5 5 9 1 P a l o A l t o T M A | 9 Mo d e S h a r e b y H o m e G e o g r a p h y Co m m u t e r s f r o m S a n F r a n c i s c o a r e t h e l e a s t l i k e l y t o d r i v e . Dr o v e a l o n e Ca l t r a i n Wa l k / B i k e Ca r p o o l e d Wo r k e d R e m o t e l y / O t h e r 76 % 70 % 65 % 63 % 48 % 41 % 20 % 18 % 16 % 12 % 12 % 10 % 9% 7% 6% 6% 5% 5% 3% 3% 3% 1% 1% 0% 0% Sa n F r a n c i s c o ( 1 0 % ) P e n i n s u l a ( 2 0 % ) S o u t h B a y ( 3 3 % ) P a l o A l t o ( 2 2 % ) E a s t B a y ( 7 % ) Nu m b e r s i n p a r e n t h e s e s r e p r e s e n t t h e p e r c en t a g e o f t h e s a m p l e f o r e a c h r e s p e c t i v e su b g r o u p . Re f u s e d t o r e p o r t = 8 % Q1 . T h i n k i n g b a c k t o l a s t w e e k , w h a t mo d e o f t r a n s p o r t a t i o n di d y o u u s e t o c o m m u t e T O d o w n t o w n P a l o A l t o ? 15 - 5 5 9 1 P a l o A l t o T M A | 10 Mo d e S h a r e b y A g e a n d P a r e n t a l S t a t u s Ol d e r c o m m u t e r s a n d P a r e n t s a r e m o r e l i k e l y t o d r i v e a l o n e t o w o r k . Dr o v e a l o n e Ca l t r a i n Wa l k / B i k e Ca r p o o l e d Wo r k e d R e m o t e l y / O t h e r 70 % 51 % 20 % 18 % 9% 9% 7% 7% 5% 5% 18 - 4 9 ( 6 6 % ) 50 + ( 1 9 % ) Ag e Re f u s e d t o r e p o r t = 1 5 % 66 % 50 % 20 % 19 % 11 % 8% 8% 7% 7% 4% Pa r e n t ( 2 8 % ) N o n P a r e n t ( 6 8 % ) Pa r e n t a l S t a t u s Re f u s e d t o r e p o r t = 4 % Nu m b e r s i n p a r e n t h e s e s r e p r e s e n t t h e p e r c e n t a g e o f t h e s a m p l e fo r e a c h r e s p e c t i v e s u b g r o u p . Q1 . T h i n k i n g b a c k t o l a s t w e e k , w h a t mo d e o f t r a n s p o r t a t i o n di d y o u u s e t o c o m m u t e T O d o w n t o w n P a l o A l t o ? 15 - 5 5 9 1 P a l o A l t o T M A | 11 Mo d e S h a r e b y W o r k S t a r t T i m e Co m m u t e r s w i t h f l e x i b l e s c h e d u l e s a r e l e s s l i k e l y t o d r i v e . Dr o v e a l o n e Ca l t r a i n Wa l k / B i k e Ca r p o o l e d Wo r k e d R e m o t e l y / O t h e r 64 % 63 % 49 % 20 % 19 % 15 % 14 % 11 % 8% 9% 8% 7% 5% 5% 2% St a r t a t a s p e c i f i c t i m e ( 3 3 % ) S c h e d u l e is f l e x i b l e ( 5 5 % ) S c h e d u l e v a r i e s ( 1 1 % ) Nu m b e r s i n p a r e n t h e s e s r e p r e s e n t t h e p e r c en t a g e o f t h e s a m p l e f o r e a c h r e s p e c t i v e su b g r o u p . Q1 . T h i n k i n g b a c k t o l a s t w e e k , w h a t mo d e o f t r a n s p o r t a t i o n di d y o u u s e t o c o m m u t e T O d o w n t o w n P a l o A l t o ? 15 - 5 5 9 1 P a l o A l t o T M A | 12 Mo d e S h a r e b y J o b S t a t u s Pa r t - t i m e e m p l o y e e s a r e m o r e l i k e l y t o d r i v e . Dr o v e a l o n e Ca l t r a i n Wa l k / B i k e Ca r p o o l e d Wo r k e d R e m o t e l y / O t h e r 75 % 66 % 53 % 19 % 16 % 14 % 11 % 8% 7% 7% 6% 5% 5% 4% 3% On e f u l l - t i m e j o b ( 8 4 % ) O n e p a r t - t i m e j o b ( 8 % ) M o r e t h a n o n e j o b ( 6 % ) Nu m b e r s i n p a r e n t h e s e s r e p r e s e n t t h e p e r c en t a g e o f t h e s a m p l e f o r e a c h r e s p e c t i v e su b g r o u p . Q1 . T h i n k i n g b a c k t o l a s t w e e k , w h a t mo d e o f t r a n s p o r t a t i o n di d y o u u s e t o c o m m u t e T O d o w n t o w n P a l o A l t o ? 15 - 5 5 9 1 P a l o A l t o T M A | 13 Mo d e S h a r e b y B u s i n e s s T y p e Em p l o y e e s i n R e t a i l , R e s t a u r a n t , a n d H o s p i t a li t y c o m p a n i e s a r e m o r e l i k e l y t o d r i v e . Dr o v e a l o n e Ca l t r a i n Wa l k / B i k e Ca r p o o l e d Wo r k e d R e m o t e l y / O t h e r 78 % 72 % 73 % 67 % 59 % 33 % 31 % 26 % 20 % 14 % 13 % 10 % 9% 10 % 10 % 10 % 7% 7% 7% 8% 7% 6% 6% 5% 4% 3% 2% 2% 1% 1% Re t a i l ( 7 % ) G o v e r n m e n t ( 9 % ) T e c h n o l o g y ( 3 9 % ) R e s t a u ra n t ( 1 2 % ) H o s p i t a l i t y ( 1 6% ) L i g h t O f f i c e ( 1 1 % ) Nu m b e r s i n p a r e n t h e s e s r e p r e s e n t t h e p e r c en t a g e o f t h e s a m p l e f o r e a c h r e s p e c t i v e su b g r o u p . Q1 . T h i n k i n g b a c k t o l a s t w e e k , w h a t mo d e o f t r a n s p o r t a t i o n di d y o u u s e t o c o m m u t e T O d o w n t o w n P a l o A l t o ? 15 - 5 5 9 1 P a l o A l t o T M A | 14 Dr i v e A l o n e M o d e R a n k e d Re s p o n d e n t s w h o l i v e i n t h e E a s t B a y , a r e e m p l o y e d p a r t t i m e , a n d w o r k a t a s m a l l co m p a n y a n d r e t a i l c o m p a n y a r e m o r e l i k e l y t o d r i v e a l o n e . 73 % 72 % 70 % 67 % 66 % 66 % 65 % 64 % 63 % 63 % 61 % 59 % 55 % 53 % 51 % 50 % 49 % 41 % 41 % 33 % 18 % Re t a i l Ea s t B a y On e p a r t - t i m e j o b 1- 2 5 e m p . Ho s p i t a l i t y Re s t a u r a n t Ag e 5 0 + Li g h t o f f i c e Pa r e n t Mo r e t h a n o n e j o b So u t h B a y St a r t a t s p e c i f i c t i m e Sc h e d u l e v a r i e s Pe n i n s u l a 26 - 1 0 0 e m p . Go v e r n m e n t Ov e r a l l On e f u l l - t i m e j o b A g e 1 8 - 4 9 No n P a r e n t Sc h e d u l e i s f l e x i b l e 10 1 + e m p . Pa l o A l t o Te c h n o l o g y Sa n F r a n c i s c o 78 % 76 % 75 % 74 % Pe r c e n t a g e o f S O V tr i p s b y e m p l o y e e de m o g r a p h i c s 15 - 5 5 9 1 P a l o A l t o T M A | 15 Q1 . T h i n k i n g b a c k t o l a s t w e e k , w h a t mo d e o f t r a n s p o r t a t i o n di d y o u u s e t o c o m m u t e T O d o w n t o w n P a l o A l t o ? Tr a n s p o r t a t i o n At t i t u d e s Dr i v i n g A t t i t u d e s Tw o - t h i r d s ( 6 7 % ) o f d r i v e r s s a y t h e y p r e f e r t o d r i v e a n d p l a n o n co n t i n u i n g t o d o s o . Am o n g S O V D r i v e r s , 7 7 2 n St r o n g l y So m e w h a t To t a l ag r e e a g r e e Ag r e e I p r e f e r t o d r i v e t o w o r k a n d p l a n o n co n t i n u i n g t o d o s o . I n e e d t o d r i v e t o w o r k b e c a u s e I m a k e o t h e r st o p s , s u c h a s f o r s c h o o l , k i d s , o r o t h e r er r a n d s , b e f o r e o r a f t e r w o r k . I w o u l d r a t h e r n o t d r i v e t o w o r k , b u t I h a v e n o ot h e r g o o d o p t i o n s . I n e e d t o d r i v e t o w o r k b e c a u s e I u s e m y c a r fo r m e e t i n g s , d e l i v e r i e s , o r o t h e r w o r k - r e l a t e d ta s k s . I w o u l d t a k e a c a r p o o l o r v a n p o o l t o w o r k i f i t wa s c o n v e n i e n t , s a f e , a n d e a s y t o f i n d . 42 % 35 % 27 % 23 % 13 % 24 % 25 % 23 % 20 % 22 % 67 % 60 % 50 % 44 % 35 % Q1 0 - Q 2 0 . P l e a s e i n d i c a t e w h e t h e r y o u s t r o n g l y a g r e e , s o m e w h a t a g r e e , s o m e w h a t di s a g r e e , o r s t r o n g l y d i s a g r e e w i t h e a ch o f t h e f o l l o w i n g s t a t e m e n t s . 15 - 5 5 9 1 P a l o A l t o T M A | 17 Tr a n s i t A t t i t u d e s Sc h e d u l e , f r e q u e n c y , a n d c o n v e n i e n c e a p p e a r t o be s l i g h t l y l a r g e r o b s t a c l e s t o i n c r e a s i n g tr a n s i t r i d e r s h i p t h a n c o s t . Am o n g S O V D r i v e r s , 7 7 2 n St r o n g l y So m e w h a t To t a l ag r e e a g r e e Ag r e e I w o u l d t a k e t r a n s i t t o w o r k i f t h e s e r v i c e wa s f a s t e r o r m o r e f r e q u e n t . I w o u l d t a k e t r a n s i t t o w o r k i f t h e s c h e d u l e wa s b e t t e r a n d i t r a n w h e n I n e e d e d i t . I w o u l d t a k e t r a n s i t t o w o r k i f i t w a s e a s i e r to g e t t o a t r a n s i t s t o p . I w o u l d t a k e t r a n s i t t o w o r k i f i t w a s l e s s ex p e n s i v e o r I w a s g i v e n a d i s c o u n t e d tr a n s i t p a s s . 47 % 46 % 26 % 25 % 24 % 22 % 21 % 20 % 19 % 16 % 43 % 38 % Q1 0 - Q 2 0 . P l e a s e i n d i c a t e w h e t h e r y o u s t r o n g l y a g r e e , s o m e w h a t a g r e e , s o m e w h a t di s a g r e e , o r s t r o n g l y d i s a g r e e w i t h e a ch o f t h e f o l l o w i n g s t a t e m e n t s . 15 - 5 5 9 1 P a l o A l t o T M A | 18 Ag r e e : W o u l d R a t h e r N o t D r i v e Dr i v e r s w h o f e e l t h e y h a v e n o o t h e r g o o d o p t i on s b e l i e v e t r a n s i t w i l l n o t f i t t h e i r s c h e d u l e or i s n o t c o n v e n i e n t f o r t h e m . Am o n g t h e 5 0 % o f S O V D r i v e r s w h o w o u l d p r e f e r n o t t o dr i v e b u t f e e l t h e y h a v e n o o t h e r g o o d o p t i o n s . Ag r e e I wo u l d t a k e t r a n s i t i f s e r v i c e w a s f a s t e r / m o r e f r e q u e n t 63 % I w o u l d t a k e t r a n s i t if t h e s c h e d u l e w a s b e t t e r / i t r a n w h e n I n e e d i t 61 % I wo u l d t a k e t r a n s i t i f i t w a s e a s i e r t o g e t t o a s t o p 59 % I w o u l d t a k e t r a n s i t i f i t w a s l e s s ex p e n s i v e o r I r e c e i v e d a d i s c o u n t e d p a s s 47 % Q1 0 - Q 2 0 . P l e a s e i n d i c a t e w h e t h e r y o u s t r o n g l y a g r e e , s o m e w h a t a g r e e , s o m e w h a t di s a g r e e , o r s t r o n g l y d i s a g r e e w i t h e a ch o f t h e f o l l o w i n g s t a t e m e n t s . 15 - 5 5 9 1 P a l o A l t o T M A | 19 Re a s o n s f o r N O T T a k i n g T r a n s i t Ne e d o f a c a r , p e r s o n a l p r e f e r e n c e , a n d l a ck o f c o n v e n i e n c e a r e t h e p r i m a r y r e a s o n s dr i v e r s d o n o t t a k e t r a n s i t m o r e o f t e n . Am o n g S O V D r i v e r s , 7 7 2 n Ne e d c a r f o r e r r a n d s / m e e t i n g s I p r e f e r t o d r i v e Sc h e d u l e i s n o t c o n v e n i e n t Ro u t e s n o t w h e r e n e e d e d St o p s n o t c o n v e n i e n t Ta k e t r a n s i t a s n e e d e d To o e x p e n s i v e Un r e l i a b l e It w o u l d t a k e l o n g e r Ot h e r / D o n ' t k n o w 21 % 17 % 16 % 12 % 12 % 5% 5% 4% 2% 6% 21 . W h a t i s t h e m a i n r e a s o n y o u do n o t t a k e t r a n s i t m o r e o f t e n ? 15 - 5 5 9 1 P a l o A l t o T M A | 20 Bi k i n g a n d W a l k i n g A t t i t u d e s Be t t e r r o u t e s a n d b e t t e r p a r k i n g / s t o r a g e op t i o n s a p p e a r t o b e a f a c t o r f o r s o m e co m m u t e r s w h o p o t e n t i a l l y l i v e c l o s e en o u g h t o w a l k o r b i k e t o w o r k . %’ s r e f l e c t t h e t o t a l a m o u n t o f t r i p s t a k e n du r i n g t h e we e k a m o n g t h o s e w h o l i v e w i t h i n a 3 m i l e r a d i u s Dr o v e a l o n e 43 % Wa l k e d 26 % Ro d e a b i c y c l e 19 % Ca r p o o l e d 5% Wo r k e d r e m o t e l y 3% Ot h e r 3% Ca l t r a i n 1% Am o n g r e s p o n d e n t s w h o l i v e w i t h i n a 3 mi l e r a d i u s o f D o w n t o w n P a l o A l t o , 3 2 6 n St r o n g l y So m e w h a t To t a l ag r e e a g r e e Ag r e e I w o u l d w a l k o r b i k e t o wo r k i f t h e r e w e r e b e t t e r 23 % 17 % 40 % pa t h s , t r a i l s , a n d si d e w a l k s . I w o u l d b i k e t o w o r k i f th e r e w a s b e t t e r p a r k i n g 16 % 16 % 32 % or s t o r a g e o p t i o n s f o r m y bi k e a t m y w o r k l o c a t i o n . Q1 0 - Q 2 0 . P l e a s e i n d i c a t e w h e t h e r y o u s t r o n g l y a g r e e , s o m e w h a t a g r e e , s o m e w h a t di s a g r e e , o r s t r o n g l y d i s a g r e e w i t h e a ch o f t h e f o l l o w i n g s t a t e m e n t s . 15 - 5 5 9 1 P a l o A l t o T M A | 21 Pa r k i n g Pa r k i n g Mo r e t h a n h a l f o f c o m m u t e r s p a r k i n pu b l i c o r p r i v a t e g a r a g e s o r l o t s ; fi f t e e n p e r c e n t p a r k on n e i g h b o r h o o d s t r e e t s . 30 % 21 % 15 % 4% 3% 2% 24 % Pu b l i c g a r a g e Pr i v a t e / e m p l o y e r Ne i g h b o r h o o d It v a r i e s I n a 2 - o r 3 - h o u r Ca l t r a i n p a r k i n g l o t O t h e r / D K / or p a r k i n g l o t ga r a g e o r p a r k i n g st r e e t s on - s t r e e t p a r k i n g Do n ’ t d r i v e lo t zo n e Wh e r e d o y o u t y p i c a l l y p a r k w h e n y o u d r i v e t o w o r k ? 4. 15 - 5 5 9 1 P a l o A l t o T M A | 23 Pa r k i n g b y W o r k s i t e S i z e Co m m u t e r s w h o p a r k o n n e i g h b o r h o o d s t r ee t s a r e m o s t l i k e l y t o w o r k f o r a me d i u m - s i z e d b u s i n e s s . Bu s i n e s s S i z e b y N u mb e r o f E m p l o y e e s 1- 2 5 26 - 1 0 0 10 1 + 63 % 26 % 46 % 12 % 34 % 7% 41 % 47 % 25 % Pu b l i c g a r a g e o r Pr i v a t e / e m p l o y e r Ne i g h b o r h o o d pa r k i n g l o t ga r a g e o r p a r k i n g l o t st r e e t s (3 0 % ) (2 1 % ) (1 5 % ) Wh e r e d o y o u t y p i c a l l y p a r k w h e n y o u d r i v e t o w o r k ? 4. 15 - 5 5 9 1 P a l o A l t o T M A | 24 Pa r k i n g b y B u s i n e s s T y p e Co m m u t e r s w h o u s e p u b l i c g a r a g e s a n d l o t s a r e mo r e l i k e l y t o b e G o v e r n m e n t w o r k e r s . Re t a i l Go v ' t Te c h Re s t a u r a n t Ho s p i t a l i t y Li g h t O f f i c e 55 % 28 % 10 % 31 % 29 % 2% 22 % 19 % 12 % 17 % 33 % 18 % 36 % 5% 28 % 35 % 37 % 8% Pu b l i c g a r a g e o r Pr i v a t e / e m p l o y e r Ne i g h b o r h o o d pa r k i n g l o t ga r a g e o r p a r k i n g l o t st r e e t s (3 0 % ) (2 1 % ) (1 5 % ) Wh e r e d o y o u t y p i c a l l y p a r k w h e n y o u d r i v e t o w o r k ? 4. 15 - 5 5 9 1 P a l o A l t o T M A | 25 Co m m u t e r Se g m e n t a t i o n s Dr i v e r S e g m e n t a t i o n Ab o u t h a l f ( 4 9 % ) o f d r i v e r s a r e o p e n t o a l t e r n a t i v e s t o d r i v i n g . Am o n g S O V D r i v e r s , 7 7 2 n Dr i v e a l o n e a n d Dr i v e a l o n e a n d a r e Dr i v e a l o n e b u t El s e al w a y s w i l l op e n t o o t h e r o p t i o n s w o u l d p r e f e r n o t t o 49 % 42 % 24 % 25 % 9% Dr i v e a l o n e a n d a l w a y s w i l l : Dr i v e a l o n e a t l e a s t o n c e a w e e k a n d s t r o n g l y a g r e e t h a t t h e y pr e f e r t o d r i v e a n d p l a n o n c o n t i n u i n g t o d o s o . Dr i v e a l o n e a n d a r e o p e n t o o t h e r o p t i o n s : Dr i v e a l o n e a t l e a s t o n c e a w e e k a n d s o m e w h a t ag r e e t h a t t h e y p r e f e r t o d r i v e a n d p l a n o n c o n t i n u i n g t o d o s o . Dr i v e a l o n e b u t w o u l d p r e f e r n o t t o : Dr i v e a l o n e a t l e a s t o n c e a w e e k a n d d i s a g r e e t h a t t h e y pr e f e r t o d r i v e a n d p l a n o n c o n t i n u i n g t o d o s o . El s e : Dr i v e a l o n e a t l e a s t o n c e a w e e k a n d d i d n o t a n s w e r t h a t t h e y pr e f e r t o d r i v e a n d p l a n o n co n t i n u i n g t o d o s o . 15 - 5 5 9 1 P a l o A l t o T M A | 27 De m o g r a p h i c s T h a t A r e M o s t L i k e l y t o C h a n g e H a b i t s Dr i v e r s i n S a n F r a n c i s c o , w h o w o r k f o r a l a rg e o r T e c h c o m p a n y , h a v e f l e x i b l e w o r k sc h e d u l e s a n d a r e y o u n g e r a r e m o r e l i k e l y to c o n s i d e r o t h e r t r a n s p o r t a t i o n o p t i o n s . 72 % 66 % 62 % 60 % 57 % 53 % 53 % 52 % 52 % 51 % 51 % 51 % 50 % 49 % 49 % 48 % 48 % 47 % 44 % 44 % 43 % 43 % 41 % 41 % 41 % 35 % 32 % 31 % Te c h n o l o g y Sa n F r a n c i s c o 10 1 + e m p . Go v e r n m e n t Wo r k s c h e d u l e i s f l e x i b l e Li g h t o f f i c e Ag e 1 8 - 4 9 Pe a k h o u r c o m m u t e r So u t h B a y Fu l l t i m e w o r k e r Co m m u t e 1 0 t o 5 0 m i l e s No n - P a r e n t Pa l o A l t o Co m m u t e 5 0 + m i l e s Ov e r a l l Ea s t B a y Co m m u t e 1 - 1 0 m i l e s Pa r e n t Re t a i l 26 - 1 0 0 e m p . No n p e a k h o u r c o m m u t e r Pa r t t i m e w o r k e r Pe n i n s u l a St a r t w o r k a t a s p e c i f i c t i m e 1- 2 5 e m p . Ho s p i t a l i t y Ag e 5 0 + Re s t a u r a n t % o f S O V d r i v e r s w h o wo u l d p r e f e r n o t t o dr i v e , b y d e m o s 15 - 5 5 9 1 P a l o A l t o T M A | 28 Ov e r a l l E m p l o y e e L o c a t i o n Th e m a p r e p r e s e n t s t h e pe r c e n t a g e o f d o w n t o w n em p l o y e e s b y h o m e z i p c o d e . 15 - 5 5 9 1 P a l o A l t o T M A | 29 Te c h n o l o g y W o r k e r C o m m u t e r L o c a t i o n Th e m a p r e p r e s e n t s t h e pe r c e n t a g e o f T a r g e t D r i v e r s wh o w o r k f o r t e c h c o m p a n i e s , by h o m e z i p c o d e . 15 - 5 5 9 1 P a l o A l t o T M A | 36 Go v e r n m e n t W o r k e r s C o m m u t e r L o c a t i o n Th e m a p r e p r e s e n t s t h e pe r c e n t a g e o f T a r g e t D r i v e r s wh o w o r k f o r t h e G o v e r n m e n t , by h o m e z i p c o d e . 15 - 5 5 9 1 P a l o A l t o T M A | 37 Co n c l u s i o n s Co n c l u s i o n s ` Cu r r e n t l y j u s t m o r e t h a n h a l f ( 5 5 % ) o f e m p l o y e e t r i p s in t o D o w n t o w n P a l o A l t o a r e S O V t r i p s . – Ne a r l y h a l f ( 4 9 % ) o f t h e s e S O V d r i v e r s e x p r e s s e d a n in t e r e s t i n s e e k i n g a l t e r n a t i v e t r a n s p o r t a t i o n o p t i o n s . – Th o s e m o s t l i k e l y t o s e e k a l t e r n a t i v e o p t i o n s a r e m o r e li k e l y t o w o r k f o r t e c h c o m p a n i e s a n d / o r l a r g e e m p l o y e r s , be y o u n g e r , l i v e m o r e t h a n 1 0 m i l e s f r o m P a l o A l t o , a n d ha v e a f l e x i b l e w o r k s c h e d u l e . – Th e y h a v e c o n c e r n s a b o u t t r a n s i t a s a n a l t e r n a t i v e , w i t h pr i m a r y c o n c e r n s b e i n g a r e a l o r p e r c e i v e d l a c k o f co n v e n i e n c e f o r r o u t e s , s c h e d u l e s , a n d l o c a t i o n s o f s t o p s . Co s t i s a l s o a c o n c e r n f o r s o m e . 15 - 5 5 9 1 P a l o A l t o T M A | 39 Co n t a c t I n f o r m a t i o n To m P a t r a s to m @ e m c r e s e a r c h . c o m 61 4 . 8 2 7 . 9 6 7 7 Sa r a L a B a t t sa r a @ e m c r e s e a r c h . c o m 51 0 . 5 5 0 . 8 9 2 4 Do u g M a c D o w e l l do u g @ e m c r e s e a r c h . c o m 61 4 . 8 2 7 . 9 6 7 3 15 - 5 5 9 1 P a l o A l t o T M A | 40 Attachment B - Draft Business Plan PALO ALTO TRANSPORTATION MANAGEMENT ASSOCIATION MAY, 2016 Attachment C Draft Business Plan Pg. 1 Executive Summary (to come) Mission & Purpose (to come) Market Analysis The City’s new Business Registry and data from the TMA’s 2016 Downtown Employee Commute Survey confirm that the population of Downtown employees is approximately 10,000. The 2015 single occupant vehicle (SOV) trip rate is 55% (5,500 employees drive alone to work). Of these, the 2015 commute survey revealed that 49% of these drive-alone employees are willing to try an alternative. The TMA’s initial target markets and initial programs are informed by these facts and the following data points: Data Points Relevance to TMA Programs Industry Research  Restricting and pricing parking can result in up to 28% reductions in driving  Transit subsidies result in 5% to 20% reductions  Shuttles result in 7% to 22% reductions  Information and marketing result in 4% reductions Palo Alto is well served by Caltrain for traditional commuters; other carpool and first/last mile programs (including the shuttle system), plus supportive parking management will maximize the investment in and effectiveness of each strategy. 2015 Employee Survey Identified target markets: workers along the Caltrain corridor; within Palo Alto; and in specific zip codes where transit and other modes already do or can work well. Almost 50% of drive-alones are willing to try an alternative. Our job is to give them options that work and provide incentives that encourage long-term behavior change. Business Registry 854 listings for Downtown:  88 eating and lodging  81 retail  392 office  91 service/communications  758 have 0-25 employees  76 have 26-100 employees  16 have 101-to 500 employees  2 have 501+ employees Only a handful of employers, including the City, are large enough to be able to offer robust TDM programs on their own; nearly two-thirds of downtown workers and their employers need assistance. Ancillary programs (i.e., first/last mile solutions) can help larger companies increase effectiveness of existing programs such as GoPass. Draft Business Plan Pg. 2 Residential Parking Permit Data The number of workers who live in specific zip codes within East Palo Alto, Redwood City, Mountain View, San Jose, San Mateo, Santa Clara and Sunnyvale 2015 Commute Survey identified these zip codes as having good transit and other alternative mode utilization and/or potential Strategic Opportunities and Challenges Opportunities  There is a growing interest and desire to use alternatives by employees to use other transportation modes as well as interest by employers as transportation becomes an important employee recruitment and retention tool  Policy changes will make transit, biking, walking, and carpooling more attractive and affordable than driving and parking  The planned reduction in Residential Parking Permits for employee use will increase demand for alternatives  Paid parking and increased monthly parking fees can support the TMA’s efforts  It is becoming increasingly faster and easier to use sustainable transportation modes to commute to work  Downtown Palo Alto has very good transit service options (Caltrain, VTA, SamTrans) for many workers  New technologies and ‘first mile’ services will make core transit more accessible for more employees Challenges  Fare inequalities can make using transit far more expensive than driving and parking  First mile problems – getting to transit and parking availability at transit can be a barrier  Free or inexpensive parking near work still makes driving more attractive  High turnover in retail, food service, other businesses will require consistent and ongoing marketing and information. Language may also be a barrier among some workers.  Understanding options is difficult – there is no single, ‘easy’ resource available to employees or employers Current Objectives The City has established a goal of reducing SOV commutes by 30% over the next several years. The TMA’s work plan is designed to move the needle towards this goal while building a strong organizational foundation for long-term sustainability and results-oriented programs. We are starting with a benchmark of some 5,500 downtown employees who current drive alone to get to and from work. A 30% reduction would change the commute patterns of some 1,650 employees. TMA Board has identified five key areas of focus for the next 24 months. These align with the TMA’s Mission, Values and goals, as well as to helping the City meet its SOV reduction and other environmental goals. The key areas are: Draft Business Plan Pg. 3 1. Program Development 2. Partnership 3. Advocacy 4. Information & Outreach 5. Sustainable Budget These objectives are important individually and collectively, as part of how the TMA will influence and directly enable aggressive reductions in SOV commute patterns. The TMA has further quantified behavior changes by setting specific mode shift goals: Number of Commuters Mode Shift To 1,000 Transit (Caltrain, VTA, Samtrans, Dumbarton Exp) 300 Carpooling and other first/last mile shared ride services 100-150 City, Stanford, other shuttle systems 100-150 94303 and other low income zip codes with peak/non-peak schedules 50 Other (Walk, Bike, Telecommute) The ability to reach these aggressive goals depends on wide variety of factors, many some of which are beyond the TMA’s control. They include:  The overall state of the economy, downtown business climate and ‘mix’ of businesses  The evolution of ‘personal mobility’ options and technology  The integration of modes and ease of use by commuters (i.e., coordinated transfers)  The availability and capacity of alternative modes (i.e., Caltrain at capacity)  The cost of using alternative modes  The availability of funds to support TMA activities and programs, including the level of short- term investment for incentivizing and then sustaining behavior change  Parking management policy: availability and pricing of downtown parking facilities Draft Business Plan Pg. 4 Summary of Objectives Objective: Programs and Services. Provide access to, subsidies, and other incentives to use public transit, ridesharing, and non- vehicular modes (walking and biking) for downtown employees who currently drive alone. Highest Priority: Provide Caltrain and VTA passes for employees who work for companies not eligible for transit bulk pass programs, who live in targeted areas where transit availability is good, and for whom the cost of taking transit far exceeds the cost of driving and parking. Secondary: Employees for whom taking public transit is not a viable option but carpooling or other programs are a viable alternative. How success will be measured: End Achievement: Reduction in SOV rate and an increase in use of public transit, carpooling and other first/last mile solutions. Until policy and pricing changes are implemented that make taking transit affordable for workers at small companies, other incentives are needed to make transit competitive with the cost of driving and parking. The TMA’s advocacy objective addresses policy. Action: Transit Subsidy Goal: 700-1,000 employees Target: Employees in areas where access to and availability of frequent transit is good; where travel times and the cost of driving is competitive with transit. These employees will be given a full transit subsidy for an introductory period; a lesser subsidy for continued transit use and not buying parking permits after a specified period of time. Ultimately, the cost of an annual or monthly pass will eliminate the need for TMA-sponsored subsidies for all but ‘new’ users (i.e., new employees). This program reduces SOV trips, congestion, VMT, and demand for parking. Action: Carpool Subsidies Goal: 300-600 employees Target: Employees for whom taking transit is not an option who live within a 40-mile radius of downtown. Subsidize carpool rides taken to and from downtown during peak commute hours to incentivize both drivers and riders. Subsidies may gradually be reduced as flat rates are established by carpool vendors. This program reduces SOV trips, congestion, VMT and demand for parking. Action: 94303 and Other Low Income Zipcodes Goal: 100-150 employees Target: Employees who work a combination of peak and ‘non- peak’ hours in the hospitality industry who live in targeted zip codes lacking transit availability and other alternatives. These employees often speak Spanish and other languages; they may be able to use transit in one direction, but not in both. Work with IDEO to further research barriers and needs; work with rideshare vendors to develop a pilot (i.e., specialized hours carpooling/GRH) as well as the City’s shuttle network regarding hours and routes. Ultimately, the cost and availability of these Draft Business Plan Pg. 5 services will make using alternatives affordable and viable for this market niche. This program will reduce SOV trips, VMT, congestion and parking demand. Action: Other First/Last Mile Solutions (targeted zip codes) Goal: 100 employees Target: Employees working for companies who do provide GoPass or VTA but for whom getting to (and lack of parking at) a Caltrain or VTA station is a barrier. Work with Lyft and other rideshare and TNC vendors to develop a first/last mile subsidy to and from targeted Caltrain/VTA stations. Ultimately, as density builds (and expands beyond Palo Alto employees), rideshare services will provide ‘Lyft Line’ type flat pricing that will be self-sustainable for these users. This program will reduce SOV trips, congestion and parking demand. It will also increase the ROI on the GoPass investment for employers, making this program more sustainable. Action: City Shuttles Goal: 100-150 employees Target: Employees who live and work in Palo Alto who live along an existing or potential shuttle route. Also employees who live in Palo Alto who are outbound via Caltrain. Work with the City in evaluating and reconfiguring the shuttle network to be more effective in addressing commute needs for Palo Alto residents working in downtown or using Caltrain. Routes, hours of operation, frequency of service and travel times to and from downtown and other hubs will be reviewed. Ultimately, this program will help increase ridership and increase the ROI the City already makes in the shuttle system, decreasing per-mile and per-passenger costs and serving a wider market. This program will reduce SOV trips, congestion, and parking demand. Draft Business Plan Pg. 6 Objective: Advocacy The TMA will focus on two major policy areas which are inextricably linked to the effectiveness and cost of TDM measures: 1. Collaborate with Caltrain and VTA to create a new pricing policy and structure which allows smaller employers to participate in a discount transit pass program 2. Right pricing and sizing of parking for Downtown employees Both of these will require building consensus and coalitions of support; as well as developing ‘win- win’ solutions for all stakeholders, and are anticipated to take 1 to 3 or more years. Highest Priority: Working with the community to build support for the creation of a new pricing structure for small employers and using data from the TMA’s initial subsidy programs to inform policy. Working with the City’s Downtown Parking Management Study and participate in the Downtown Parking Committee, to develop parking management policies and new revenue streams. Secondary: Advocate to preserve and build existing services such as VTA Route 35; AC Transit Dumbarton Express and support other local, regional and national policies and measures which align with the TMA’s purpose and goals. How success will be measured: The adoption of a new fare structure/policy at Caltrain and VTA that creates parity and availability on a per-cost-per-pass basis for small employers with existing large employer bulk pass programs. Parking pricing, siting and availability in downtown Palo Alto which supports TDM measures, avoids the need to build new parking facilities, and ensures parking availability for shoppers and other visitors while minimizing the impacts of commuter parking on nearby residential streets. Availability, affordability, levels of service and the number of transportation mode options for downtown employees and residents; and programs and policies that support TDM downtown and beyond. Action: Advocate for a new fare policy/structure at Caltrain Process: Build a coalition of support (locally and regionally) for Caltrain to provide a new fare policy/structure that enables small employers to purchase discount annual or monthly passes either directly and/or through authorized ‘resellers’ such as TMA’s. Meet with Caltrain staff and elected officials to develop such policy recommendations; publicize and build public support for efforts. Ultimately, passage of a new fare structure will enable thousands of ‘new’ riders to utilize the Caltrain and VTA systems. ‘Fare parity’ for those working for small employers and in low wage positions, also addresses an important social equity issue. The end result will be the cost for the TMA to subsidize passes will be greatly reduced long term. Action: Process: Work with the City to explore the right mix of pricing, availability, location, structure and other components of an effective employee parking program. The TMA will participate Draft Business Plan Pg. 7 Advocate for ‘right pricing’ and ‘right sizing’ of parking for downtown employees on two City-sponsored committees: the Downtown Parking Management Parking Study (ad hoc) and Downtown Parking Committee (permanent). It will also work with the Chamber, BID and other organizations, inform through the TMA’s website and other communications means to get feedback and build support for new policies and programs which holistically address parking issues. Ultimately, parking is priced to discourage SOV commute trips yet provides for ‘occasional’ needs; demand for Residential Parking Permits by employees is reduced (and therefore the use of residential streets) and employee parking is accommodated in existing downtown parking facilities (both public and private). Paid, on-street parking is available for shoppers and visitors. A holistic parking management approach may also provide a source of ongoing and stable funding for the TMA. Action: Measure and Monitor Parking Process: Work with VIMOC to implement a pilot program which builds on the existing City pilot to measure parking utilization. This program will identify utilization patterns (and availability) in existing facilities that may be ‘repurposed’ for occasional parking, low income permit parking, etc. Ultimately, it is likely that more efficient utilization of existing parking resources, coupled with providing viable alternatives to driving alone, and pricing will eliminate the need to construct new parking facilities. Action: Advocate for the preservation of existing transit services; removing barriers to existing services (such as parking at Dumbarton Express hubs); funding for and expansion and better utilization of key services (i.e., electrification of Caltrain) and new pilots to test new technologies and modes. Advocate for TDM support policies such as tax-deductible subsidies, etc. Process: Work with local and regional transit providers in support of preserving key services; expanding services to better suit the needs of downtown employees and residents; and foster innovative pilots that test both new modes, technologies, and approaches to alternatives. This program is dynamic and will include a range of activities from participating on planning and advisory committees at transit agencies to ongoing education/information to the business community and showing support (or opposition) through letter-writing, presentations to elected officials and other means. It will respond to short term issues (such as potential service cutbacks and solving parking issues that impact the use of Dumbarton Express service) as well as play a proactive role in long term projects. Draft Business Plan Pg. 8 Objective: Build Strong Partnerships with the City and Downtown Employer and Residential Communities The community will understand how the TMA and its programs support important priorities such as decreasing congestion, reducing parking demand on residential streets, and supporting downtown merchants. The community will have ample opportunities to interact with the TMA: to learn about programs and services; provide feedback on an ongoing basis; and participate in the development of new activities. How success will be measured: Downtown neighborhood and business associations, committees and stakeholders will be knowledgeable and supportive of the TMA and its work and the TMA will receive positive press coverage. The TMA website will be a well-utilized resource for the community at large; the feedback mechanisms from this and other public-facing activities will be positive. While the primary focus will be the downtown area, the TMA will extend these efforts, as resources allow, to other parts of the City. Action: Form an Advisory Group by July, 2016 Purpose: The purpose of the Advisory Group is to be engaged in TMA discussions at Board meetings, help to reach out and inform the local residential communities of what the TMA is doing and achieving; provide feedback, support and advocacy. Advisors will be a small group of five representing a variety of downtown stakeholders: a resident who is an outbound commuter; a resident who works downtown; one representative each from Professorville and a North neighborhood and one non-downtown resident who either works downtown or is an outbound Caltrain commuter. The TMA will publicize an application and process; Advisors will be selected by the TMA Board from this process. Action: Meet with the BID, Chamber and others on a regular basis to keep them informed about TMA programs and results. Purpose: To keep the community informed about what the TMA is doing; results of our programs; discuss new challenges and opportunities and provide another mechanism for feedback and participation. The TMA will meet with the BID at least twice a year; it will make presentations to the Chamber membership twice a year and attend and participate in Chamber and/or community events at least quarterly. Action: Participate in local events when requested; representation on transportation-related committees (City and/or other) Purpose: In keeping with the TMA’s goal of being a transportation resource for the community, it will participate in special events and serve on issues-related committees. Stanford Alumni Association’s annual “Beyond the Farm” event focused on the transportation needs of seniors in Palo Alto. Draft Business Plan Pg. 9 The TMA facilitated. The City has also requested the TMA’s participation in its Downtown Parking Management Study. Action: Request a Council Liaison to the TMA and Two Council Workshops Purpose: Keeping City Council apprised of the TMA’s progress and supportive of our efforts is key to the TMA’s success. The TMA will request a Council liaison who can attend Board meetings and/or meet with the TMA on a quarterly basis. The TMA will give the Council updates twice a year, through a “Workshop” format and attend Council meetings as they relate to TMA programs, funding, or other matters throughout the year. Action: Public Relations Purpose: The TMA will develop a relationship with local reporters as well as the City’s public information officer to make sure that these two conduits are well-informed and have accurate information. Draft Business Plan Pg. 10 Objective: Outreach. Provide high quality information to those who need it. TMA programs and services are creatively branded. Highest Priority: Downtown Employers and employees; visitors and residents Secondary: Other downtown stakeholders; transit agencies and other transportation providers, and the general public How success will be measured: Growth in the number of visits to the TMA website; time spent and number of pages visited Requests for more information or assistance At least x% of all downtown employers aware of the TMA and what services it provides within 2 years. At least xx% of downtown employers with 50+ employees agree that the TMA provides valuable information and services to them within two years Number of employers taking action as a result of interaction with the TMA Number of employees helped through information and trip planning assistance Positive publicity in local papers, social media, business newsletters, etc. Action: Website Purpose: Create an online resource to provide news and information; ‘how to’s’; and calculators to easily illustrate transportation choices and costs for employees and residents. An employer section outlining employer programs will complement the ‘general public’ site. Action: Transit Screens: Purpose: Transportation choices and accessibility in real time are ‘ubiquitous’ throughout Downtown and reinforce other marketing efforts. Placement of 2-3 transit screens in high foot traffic areas showing real-time transit information; bike-share availability, shuttle and other mode options will build awareness of multiple modes and choices; special incentive programs, etc. Action: Outreach to Large Employers Purpose: Encourage 16-20 ‘large’ employers to offer bulk transit passes to their employees; pre-tax transit payroll deductions and other programs. Work to develop and refine other programs in response to specific needs and interests by this market niche, which represents those most likely to affect and support behavior changes. Action: Publish a monthly e-newsletter Purpose: Keep employers well informed about transportation issues and TMA programs and services. Create awareness and establish TMA as a valuable resource. Promote specific programs (i.e., the City’s bike rack program) both TMA and non-TMA; inform and provide opportunities for input on issues and programs (local, regional). Action: Develop Print Material for Employers Purpose: Educate employers of all sizes what they can do; illustrate “ROI” and motivate to participate in a range of programs appropriate to their business. This collateral can be sent to employers; used by TMA staff in meetings with employers; as part of public presentations, etc. Draft Business Plan Pg. 11 Action: Develop Print Material for Employees on Current Programs Purpose: To reach every type of employee from service to tech worker; educate about the range and cost of various commute options; how to get help and promote specific ‘offers’. This piece will be updated regularly and published in at least two languages (English/Spanish); and distributed to all downtown employers. Action: Hospitality and Restaurant Worker Outreach Purpose: Reach service workers who commute at least in one direction in non-peak times (i.e., arrive in PM peak but leave late night) and who live in specific areas of density (i.e., 94303). The size of this market warrants specific outreach and program development. Action: Advertising in local newspapers Purpose: To reach residents and others beyond the downtown community to promote programs available to the general public; inform, etc. Objective: Budget. Establish a realistic two-year start-up budget. Identify stable, permanent sources of funding for ongoing operations and incentive programs post-start up. How success will be measured: TMA Board adoption of a Two Year Business Plan and budget with City support by July, 2016. TMA obtain long-term, ongoing funding agreements and other commitments within two years. Action: Develop Two Year Business Plan Purpose: Provide a roadmap for TMA’s first two years of operation with mutually agreed upon goals, strategies, evaluation metrics, and public participation levels and funding. This will enable the TMA to launch programs, begin to show results, and work towards long-term, sustainable programs and funding solutions with the City and other partners. Action: Research and meet with Foundations, other potential funders Purpose: Gain long term financial support for key elements of interest to the private sector: social equity; environmental sustainability; health; economic resiliency and changing modes, technology, and demographics. This will enable the TMA to diversify funding streams; to develop programs and test outcomes for specific niche markets, and provide for long-term planning and relevance. Action: Pursue management agreements Purpose: TMA’s typically market and manage programs on behalf of cities and other public entities: shuttles, parking, and public information are examples. This provides an ongoing and stable level of financial support for TMA overhead and other ongoing expenses that ensures the quality of program delivery. Draft Business Plan Pg. 12 Budget Planning Background and Rationale Downtown Palo Alto is at a critical juncture. Because the cost of driving and parking is by far the most ‘affordable’ as well as convenient option for many employees, significant incentives – or ‘carrots’ – are needed to change behavior. The vast majority of the 854 downtown employers are small and cannot afford additional costs of doing business such as subsidizing employees’ commutes, whether by transit or other means. The nature of retail and service businesses precludes alternatives such as telecommuting, and hours of operation require many employees to commute in peak periods in at least one direction. The TMA is optimistic that longer term, we will effect a change in policy regarding discount fare structures from transit providers such as Caltrain which will make transit affordable with little or no subsidy from the TMA. Once we have attained the initial reductions in SOV commutes, full subsidy programs can be limited to ‘new’ employees (and at a greatly reduced cost from today’s pricing). In the interim, however, significant investments must be made to bring about parity, while at the same time, realigning parking availability, location, and pricing and creating more holistic home-to-work options. The table below illustrates the disparities in the current pricing structure for Caltrain and VTA. Caltrain Individual Monthly Individual Annual Go Pass Annual Proposed Bulk Annual Proposed Bulk Monthly Zone 1 $84.80 $1,017.60 $190.00 $600.00 $50.00 Zone 2 $137.80 $1,653.60 $190.00 $600.00 $50.00 Zone 3 $190.80 $2,289.60 $190.00 $600.00 $50.00 VTA Individual Monthly Individual Annual 1-99 Employees Annual 100-2999 Employees Annual 3000+ Employees Annual Eco Pass $70.00 $770.00 $72.00 $36.00 $32.40 Eco Pass Plus $140.00 $1,680.00 $93.60 $54.00 $32.40 The TMA’s 2015 downtown employee survey revealed that a good portion of workers who drive alone are open to using an alternative. Providing the financial incentive to use transit is a key step, but it is not a ‘silver bullet.’ Even with free or heavily subsidized transit fares, using transit can be a complex undertaking. The lack of parking at many Caltrain stations presents a major barrier. The lack of coordination (poor frequency, total travel time required and cost) with other systems (i.e., taking a VTA local bus to a Caltrain station) is another obstacle. VTA is piloting new programs that address some of these issues that the TMA will explore as part of its transit and ‘first mile’ solutions. We will also develop other ‘first’ mile solutions with other rideshare services to eliminate barriers and make using alternatives more appealing. The investment to incentivize and enable behavior shift that reaches the 30% goal in the short term is costly in the early year(s) until changes in fare policy and our initial goals are met. It will cost between $1 million and $1.5 million annually. At the low end, we are investing approximately $606 annually ($50 Draft Business Plan Pg. 13 per month) per person; at the high end, $909 per person (about $75/month) to reach a goal of reducing SOV trips by 30%. It should be noted that investment is far less expensive and solves today’s problems much more quickly when compared with the cost to construct a new parking space – estimated at $60,000 per space in a structured facility. Over 30 years, the annual costs of each space is approximately $2,000 excluding financing, operations and maintenance. It already costs $462 per space to maintain existing parking spaces. Of equal importance is that building more parking capacity is antithetical to the City’s sustainability goals and desire to retain its small town ambience. Building satellite parking will require more transportation services (and costs) to link parking with end-destinations. Even with frequent connections, satellite parking adds significantly to the ‘total commute time’ for many employees and may therefore, not be highly utilized. Long-term, if transit pricing structures change, the need for fully subsidized transit and other modes from the TMA will be greatly reduced, and with those reductions, the TMA can invest in expansion and/or new modes of transportation, technology and other activities that continue to make using alternative forms of transportation the preferred way to get around Palo Alto. The budgets outlined on the following pages offer several scenarios which illustrate how various levels of investment affect the ability to reach the end goal of reducing 1650 drive alone commuters. Option 1 uses current transit pricing available to us (no discounted rates) and represents a full- on campaign for incentivizing 100% of our targeted 1,650 employees annually. Option 2 reaches the same 1,650 employees, using a proposed new bulk discount rate, which saves over 50%. Option 3 reaches half of our targeted transit employees using current transit pricing (no discounted rates), with the same budget for subsidies as Option 2. Option 4 also uses current transit pricing and reaches 20% of our targeted transit employees. While the ratios of investment in various transit types may change depending on demand and other factors, the draft budgets provide a framework from which to plan sustainable budgets and performance expectations. They also provide a basis for evaluating a range of potential funding strategies that can generate the necessary revenues for transportation demand management to be successful both short term and the long term. DRAFT Budget Scenarios Palo Alto TMA Revised5/23/2016 Reaches 30% SOV Reduction in 3 or 5 Years (5 years is slower ramp up)A 30% reduction = 1,650 Commuters Three Years to Reach Goal # Empees in Progs Cost of Subsidies # Empees in Progs Cost # Empees in Progs Cost Cost Detail: 2016 pro-rated for 6 mths Carpooling 100 6,000$ 300 10,000$ 800 15,000$ Transit/Person/Yr @ $140/mo 1,680$ Transit 50 42,000$ 350 588,000$ 500 840,000$ $3.50/trip based on 20 days/mo First Mile 50 40,600$ 150 243,600$ 150 243,600$ First Mile/Person/Yr 1,624$ Other (walk, bike, shuttle)0 25 200 $3.38/trip based on 20 days/mo Total Subsidies 200 88,600$ 825 841,600$ 1650 1,098,600$ Subsidies 2,028,800$ TMA Operations Budget 31,600$ 159,000$ 199,800$ Operations 390,400$ Total TMA Expenses/ Yr 120,200$ 1,000,600$ 1,298,400$ Total 2,419,200$ Five Years to Reach Goal # Empees in Progs Cost of Subsidies # Empees in Progs Cost # Empees in Progs Cost # Empees in Progs Cost # Empees in Progs Cost Carpooling 100 6,000$ 250 10,000$ 500 15,000$ 650 15,000$ 800 15,000$ Transit 50 42,000$ 100 168,000$ 200 336,000$ 250 420,000$ 350 588,000$ First Mile 50 40,600$ 75 121,800$ 100 162,400$ 125 203,000$ 350 568,400$ Other (walk, bike,shuttle)0 25 200 200 200 5 Yr Totals Total Subsidies 200 88,600$ 450 299,800$ 1000 513,400$ 1225 638,000$ 1700 1,171,400$ 2,711,200$ TMA Operations Budget 31,600$ 159,000$ 199,800$ 210,730$ 210,491$ 811,621$ Total TMA Expenses Per Yr 120,200$ 458,800$ 713,200$ 848,730$ 1,381,891$ 3,522,821$ Key Elements and Assumptions: 1. Carpooling incentive is $1 per ride. TMA subsidizes actual costs above that. 2. Transit budget covers 100% of a 2-Zone Caltrain or Dumbarton Express monthly pass. Based on current 'retail' pricing (no discounts) 3. First Mile budget covers $3.38 per 1-way trip to or from selected Caltrain stations for GoPass holders or workers from East Palo Alto 4. Assumes shuttle service reconfiguration will serve workers from East Palo Alto and other areas of Palo Alto by 2018 plus gains in walking and biking Based on $100,000 Annually for Programs -- Does not reach 30% SOV Reduction Three Years # Empees in Progs Cost of Subsidies # Empees in Progs Cost # Empees in Progs Cost Carpooling 100 6,000$ 300 10,000$ 800 15,000$ Cost Detail: 2016 costs pro-rated for 6 mos Transit 100 42,000$ 15 12,600$ -$ Transit//Person/Yr @ $70/mo 840$ First Mile 50 40,600$ 0 -$ 0 -$ $1.75/trip based on 20 days/mo Other (walk, bike, shuttle)0 -$ 25 -$ 200 -$ Transit subsidy for VTA, SamTrans, 1-ZoneCaltrain Total Subsidies 250 88,600$ 340 22,600$ 1000 15,000$ Subsidies 126,200$ First Mile/Person/Yr 1,624$ TMA Operations Budget 31,600$ 159,000$ 199,800$ Operations 390,400$ $3.38/trip based on 20 days/mo Total TMA Expenses/ Yr 120,200$ 181,600$ 214,800$ Total 516,600$ 3 Year Totals 2019 - 22% SOV Reduction 2016 - 3% SOV Reduction 2017 - 6% SOV Reduction 2018 - 18% SOV Reduction 2020 - 30 % SOV Reduction 2016 -3% SOV Reduction 2017 - 15% SOV Reduction 2018 - 30% SOV Reduction 2016 - 3% SOV Reduction 2017 - 8% SOV Reduction 2018 - 18% SOV Reduction 3 Yr Totals Attachment D DRAFT Operations and Revenues Projections Palo Alto TMA 6/2/2016 Line Item 2016 2017 2018 2019 2020 Notes Management*‐$             110,000$       113,300$      117,000$      120,000$      Hires ED in 2017.  3% increases annually after Office Rent ‐$             12,000$         12,600$        13,230$        13,891$        Assumes 5% increase annually Office Supplies 2,000$         2,000$           2,000$          2,000$          2,000$           Insurance 5,600$         6,000$           6,400$          6,500$          6,600$           Legal Fees*‐$             ‐$               ‐$              ‐$              ‐$              Fees to file with IRS for 501C3 status Fiscal sponsor fees 16,500$      16,500$         16,500$        16,500$        16,500$        SVCF fees based on current contracts Employee Survey*‐$             ‐$               36,000$        37,000$        38,000$        Annual survey; may be replaced with other data  Website design and logo*‐$             ‐$               ‐$              5,000$          ‐$              Assumes website redesign (slight) in 2019 Website hosting and maintenance*‐$             2,500$           2,500$          2,500$          2,500$           Graphics and printing*‐$             2,500$           2,500$          2,500$          2,500$          Employer, employee branding collateral in 2016 Transit Screens (2)7,000$         7,000$           7,500$          8,000$          8,000$          2 locations Misc.500$            500$              500$              500$              500$               *Costs in 2016, part of 2017 thru existing contract Total TMA Operations 31,600$      159,000$      199,800$      210,730$      210,491$       Revenue Projections 2016 2017 2018 2019 2020 Notes Directors' contributions 35,050$      37,550$         37,600$        40,150$        40,200$        Adds med Dir in 17 & 19;  1 small in 18 & 20 Private contributions 30,000$      ‐$               ‐$              ‐$              ‐$               City Funding Agreement (2016, 2017) 100,000$    100,000$       ‐$              ‐$              ‐$               Other Total Revenues 165,050$    137,550$      37,600$        40,150$        40,200$         TMA Operations Only Surplus (Deficit)133,450$    (21,450)$       (162,200)$    (170,580)$    (170,291)$     Potential Revenue Sources: Grant funding from government/public agencies (i.e., BAAQMD, VTA, City, County, federal/state) Parking revenues (i.e., $1/day from existing garage parking permits, other potential new parking fees) Service contracts (many TMA's have service contracts with cities and others to market and/or manage TDM programs) Private donations  Business tax or other Downtown assessment  Participant fees (i.e., nominal charge emloyees pay to receive benefits) Attachment E DRAFT Operations and Revenues Projections Palo Alto TMA 6/2/2016