HomeMy WebLinkAboutStaff Report 2302-10165.Adopt an Ordinance Adding an On-Demand Transit Fare Fee to the FY 2023 Municipal Fee
Schedule – CEQA Status – Not a Project
City Council
Staff Report
From: City Manager
Report Type: CONSENT CALENDAR
Lead Department: Transportation
Meeting Date: March 13, 2023
Report #:2302-1016
TITLE
Adopt an Ordinance Adding an On-Demand Transit Fare Fee to the FY 2023 Municipal Fee
Schedule – CEQA Status – Not a Project
RECOMMENDATION
Staff recommend adopting the attached ordinance amending the FY 2023 Municipal Fee
Schedule to add the on-demand transit fare of $0 to $3.50 per ride.
EXECUTIVE SUMMARY
In accordance with the recent establishment of the pilot on-demand transit program Palo Alto
Link (PAL), the attached ordinance will establish a per passenger trip fare range (from $0 to
$3.50) to the Municipal Fee Schedule.
BACKGROUND
The Municipal Fee Schedule lists fees for City of Palo Alto services. Palo Alto Link begins service
March 7, 2023 (with the first month’s rides free for all users). City Council held a Study Session
on the program February 6, 20231 following a VTA grant award to provide the service.
ANALYSIS
The attached ordinance authorizes the fares for Palo Alto Link, the City’s new on-demand
transit service. This ordinance does not make any changes to the fares as discussed previously
when the contract with service provider Nomad was approved in December 2022, or from the
study session held in January 2023. Initially, the fare will be free for about one month to
introduce the service. After that, the regular fare for the service will be $3.50, but certain
categories of riders, such as youth, low-income, and those with disabilities will be reduced to $1
per ride. The fare range of $0-$3.50 per ride is reflected in the attached ordinance and will
1 City Council Staff Report, February 6, 2023,
https://cityofpaloalto.primegov.com/Portal/Meeting?meetingTemplateId=1067
allow the City to adjust prices within that range for promotions, discounts, and other deals as
the pilot moves forward throughout 2023 and 2024.
FISCAL/RESOURCE IMPACT
This is a Santa Clara County Measure B grant funded project requiring the establishment of a
fare box price for this service, to meet grant requirements for contributing a match of up to
$500,000 in fare box recovery fees and staff time. The local match enables the disbursement of
Santa Clara County Measure B funds up to $2,000,000 for this project.
STAKEHOLDER ENGAGEMENT
Public engagement began in early 2023 to alert the community to the upcoming availability of
the new service in March. Stakeholders who will be targeted for notification of the service
include Caltrain riders, commuters to Palo Alto, service providers targeting older adults, senior
living communities, youth service providers, neighborhood groups, etc. Community
engagement and marketing activities may include tabling at community events and destinations
(Farmer’s Market, Caltrain stations, grocery stores) and social media campaigns (NextDoor,
Facebook, Uplift Local, local newspapers, City blog posts, etc.).
ENVIRONMENTAL REVIEW
This activity is not a project under California Environmental Quality Act (CEQA) as defined in
CEQA Guidelines, section 15378, because it has no potential for resulting in either a direct or
reasonably foreseeable indirect physical change in the environment.
ATTACHMENTS
Attachment A: Ordinance Amending the FY 2023 Municipal Fee Schedule to Add On-Demand
Transit Fare
APPROVED BY:
Philip Kamhi, Chief Transportation Official
*NOT YET APPROVED*
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263_20230209_ts24
Ordinance No. ___
Ordinance of the Council of the City of Palo Alto Amending the Fiscal Year 2023
Municipal Fee Schedule to Add a New Fee for City’s On-Demand Transit Service
The Council of the City of Palo Alto ORDAINS as follows:
SECTION 1. Findings and Declarations. The City Council finds and declares as follows:
A. The City plans to begin a new on-demand transit service in March 2023 called Palo
Alto Link. City will charge a fee from free up to $3.50 per passenger trip.
B. The fee in this ordinance will provide only a minority of the funding (approximately
$340,000) for this service. This service is mostly funded through a VTA grant of $2 million.
SECTION 2. The Council of the City of Palo Alto amends the Fiscal Year 2023 Municipal
Fee Schedule by adopting the new fee for on-demand transit as set forth in Exhibit “A” and
incorporated here by reference.
SECTION 3. The fee in this Ordinance is for a specific government service provided
directly to the payor that is not provided to those not charged and which does not exceed the
reasonable costs to the local government of providing the service or product. Pursuant to Art.
XIII C, Section 1(e)(2) of the California Constitution, this fee is not a tax.
SECTION 4. The Council finds that this ordinance is not a “project” under CEQA
because it has no potential for resulting in either a direct or reasonable foreseeable indirect
change in the environment.
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*NOT YET APPROVED*
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263_20230209_ts24
SECTION 5. This ordinance shall be effective upon adoption as an amendment to the
City’s FY23 budget.
INTRODUCED:
PASSED:
AYES:
NOES:
ABSENT:
ABSTENTIONS:
ATTEST:
____________________________ ____________________________
City Clerk Mayor
APPROVED AS TO FORM: APPROVED:
____________________________ ____________________________
Assistant City Attorney City Manager
____________________________
Chief Transportation Official
____________________________
Director of Administrative
Services
*NOT YET APPROVED*
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263_20230209_ts24
Attachment A
Fiscal Year 2023 Municipal Fee Schedule
Office of Transportation Fees
On-Demand Transit (Palo Alto Link)
On-Demand Transit (Palo Alto Link) $0-$3.50 per passenger trip