HomeMy WebLinkAboutStaff Report 6926City of Palo Alto (ID # 6926)
City Council Staff Report
Report Type: Action Items Meeting Date: 5/2/2016
City of Palo Alto Page 1
Summary Title: City Transportation Tax on Businesses
Title: Initial Polling Results Regarding Feasibility of a Potential City
Transportation Tax on Businesses to Raise Funds to Reduce Traffic
Congestion, Address the Availability of Parking, and other Transportation
Improvement Options
From: City Manager
Lead Department: City Manager
Recommendation:
Staff recommends that the City Council discuss initial polling results with our Pollster and
related findings and provide direction to staff on any next steps.
Executive Summary
Fairbank, Maslin, Maullin, Metz & Associates (FM3) conducted an initial poll of 400 community
members during the week of April 14-20 to gauge the level of support on the concept of a
potential local business tax to be used for transportation related purposes. This poll was
designed to test support for such a tax with its use directed to localized transportation
improvements. FM3 continues to refine the survey results. Dave Metz, a principal with FM3 will
attend the Monday Council meeting to present an overview of the initial findings and support
discussion on the poll results with the Council. The poll results and FM3’s analysis will be
distributed at the Council meeting on Monday.
The poll tested a local tax on business related to funding City transportation improvements
through an employee head count based structure. Various rates and exemptions were tested.
No other local City tax approaches, such as a City sales tax was tested. The poll was designed to
help assess whether a special tax requiring 2/3rds majority vote could be successful (tax for a
single purpose that could be scheduled for any election). The poll also tested for support for a
general tax, which requires a simple 50% majority vote but which can only be held in a general
election (November every two years. 2016 or 2018 for example). As you know, the County is
developing a sales tax ballot measure for transportation for the November 2016 ballot. The
City has been working closely with VTA and the Silicon Valley Leadership Group on the
components of that measure.
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One of the most important decisions the Council will need to consider at its May 2 meeting is
whether placement of a local tax on the November ballot should be further explored. The
ballot language would need to be adopted prior to Council’s summer break beginning July 2,
2016. In the event Council is so interested, staff reached out to TBWB, the firm who conducted
outreach related to the infrastructure measure ballot measure to conduct possible community
outreach from early May to early June to further inform the Council’s decision. Results of that
outreach could then inform a second follow-up tracking poll in early June to provide Council
with more data to inform its decision on a ballot measure for November 2016. Alternatively,
Council may decide that 2016 is not the best time for a measure and, having more time, provide
alternate direction to staff. Finally, the Council could decide to not proceed with any further
direction.