HomeMy WebLinkAboutStaff Report 2401-2535CITY OF PALO ALTO
CITY COUNCIL
Special Meeting
Monday, April 01, 2024
Council Chambers & Hybrid
5:30 PM
Agenda Item
3.Study Session: Palo Alto Link One-Year Service Evaluation and Report; CEQA status – not a
project. Presentation
City Council
Staff Report
From: City Manager
Report Type: STUDY SESSION
Lead Department: Transportation
Meeting Date: April 1, 2024
Report #:2401-2535
TITLE
Study Session: Palo Alto Link One-Year Service Evaluation and Report; CEQA status – not a
project.
RECOMMENDATION
Staff recommends that the City Council receive a report and provide feedback on Palo Alto Link
one-year performance results and funding strategy options aligned with desired long-term
program goals.
EXECUTIVE SUMMARY
The Palo Alto Link, a pilot program funded by an Innovative Transit Grant from the Santa Clara
County Valley Transportation Authority (VTA), has reached an impressive milestone, marking its
first year of operation with notable achievements. Operated in partnership with Via, also
known as Nomad Transit Services, this on-demand, shared-ride service has been a cornerstone
in addressing the city's first-/last-mile connectivity challenges, providing an environmentally -
friendly alternative to private vehicle use.
In its inaugural year, the Palo Alto Link completed over 50,000 rides, serving an average of 900
unique riders monthly, with an average wait time of just 13.8 minutes. This service, particularly
beneficial to vulnerable and transit-dependent populations, has seen a 54% growth in ride
completions, demonstrating its critical role in the community's mobility ecosystem.
Feedback gathered through an extensive rider survey highlights the service's impact on
enhancing equity, affordability, and sustainability within Palo Alto. Remarkably, 46% of
respondents reported having no access to a personal vehicle, underscoring the service's role in
bridging mobility gaps. Moreover, the Link's operational efficiency and sustainability have been
augmented by its partnership with Stanford Research Park (SRP), which has not only
contributed significantly to the program's funding but also increased its utilization among the
park's employees.
As the pilot program progresses into its final year, staff are exploring various strategies to
sustain and enhance the service beyond its pilot phase. This includes assessing additional
funding options and potential expansions in service hours to meet community needs better.
The upcoming fiscal challenges and opportunities underscore the necessity for strategic
partnerships and innovative funding mechanisms to ensure the Palo Alto Link's continued
success and expansion.
The original Innovative Transit grant funding provides funding until May 2024, but with funding
from the SRP and an additional grant awarded through Transportation Fund for Clean Air (TFCA)
program there is enough funding to continue service until October 2025. As the City begins its
second and final year of the service, staff is seeking feedback on the program operation thus
far, any changes for the coming year, and financial implications of continuing this service
beyond the pilot period.
BACKGROUND
Palo Alto Link is operated by microtransit vendor Via, aka Nomad Transit Services, and operates
Monday - Friday, for a 10-hour service span 8:00 am-6:00 pm. The service operates within most
of the City, with exceptions only to the east and west ends that house large open spaces and
conservation lands. PAL is utilizing a ten (10) vehicle fleet to provide virtually positioned pick-up
and drop-off locations within an acceptable walking distance with the help of a web application.
Door-to-door service is available for riders who may require extra assistance. The service
addresses first-/last-mile challenges in Palo Alto and provides a convenient and affordable
transportation option for residents, employees, and vulnerable/transit-dependent populations.
The current cost of a trip is $3.50 per ride with additional passengers costing $1.75 each.
Youth, low-income, disabled, and seniors pay a reduced fare of $1.00 per ride. Rides to and
from the Stanford Research Park are free.
Palo Alto Link has provided on-demand transit service within the City of Palo Alto since March
7, 2023, utilizing Valley Transportation Authority Measure B funds designated for innovative
transit projects. Those funds and trip fares provide an initial budget for 18 months of service.
Additional funding from Stanford Research Park extended the pilot service to two years and
expanded service to the Research Park. Following the expenditure of these initial funds, either
additional partners or City funds will be needed to continue the service.
The prior Palo Alto transit service, the Palo Alto Crosstown Shuttle, was terminated in FY 2020,
following four years of declining ridership. In FY 2020, the Crosstown shuttle carried 39,377
riders, and was terminated in April 2020, with an average monthly ridership of 3,938 per
month. Unlike the previous shuttle's fixed-route service, the Palo Alto Link significantly expands
service coverage, offering comprehensive access to all Palo Alto residents rather than limiting it
to those residing or traveling along a predetermined path. The Crosstown shuttle was
previously contracted for $379,782 per year.
ANALYSIS
Performance Highlights
In the first 12 months of service (March 2023 - February 2024), Link completed 50,219 rides,
served nearly 900 unique riders per month and had an average wait time of 13.8 minutes.
Rider Growth
Completed rides steadily grew month over month, increasing by 54% over the first twelve
months. Link continues to attract new riders while maintaining a strong engaged rider base,
where approximately 75% of trips are taken by returning riders, and the average rider takes
more than 5 trips per month. This fast rider adoption demonstrates that Link is providing a
crucial means of transportation throughout Palo Alto, especially to key community resources
such as major employers, transit stations, and local schools, as detailed further in the later
location sections.
Survey Findings
Between September - October 2023, 265 Link riders provided their feedback through an in-app
survey. The survey revealed the following key takeaways regarding rider sentiment:
•Equity. Vulnerable and transit-dependent riders were impacted the most by Link: 46%
of respondents do not have access to a personal vehicle and 43% qualify for discounted
fares (50% of discounted fares were for seniors and low-income riders).
•Affordability. Many riders noted that the service provided an affordable way to reach
jobs and medical appointments and gave riders with mobility limitations “greater
independence”.
•Sustainability. Link has encouraged riders to choose shared transit, with 52% of riders
reporting that they would have otherwise used high-emission private vehicle travel. Not
only does Link unlock mobility for riders without single occupancy vehicles (SOVs), but
residents also reported that the service enables them to reduce or forgo car ownership. As
one rider stated, “Link was a key part of my decision to not purchase a car upon moving to
Palo Alto.”
History of Link’s SRP Partnership
Stanford Research Park (SRP), a business park hosting many of the largest employers in the
city, committed to investing $31,000 per month (for a total of $744,000) in Palo Alto Link, given
the service’s focus on facilitating commutes to and from the SRP businesses. The SRP
investment represents 21% of the total funding amount for the Palo Alto Link pilot program,
with the remaining funds coming from the City. In return, the City set up the Link service to be
completely free for all trips to/from SRP (relative to the standard adult fare of $3.50 per trip). A
trip counts as an SRP trip if it starts or ends within the green area within the broader blue Link
service area shown below.
SRP Link Trip Data & Performance
Link’s partnership with SRP has demonstrated that providing flexible commuter options
supports employees in returning to the office and connecting to other destinations in the
surrounding community. From March 2023 through February 2024, trips to/from SRP made up
over 28% of all Link trips. Thanks to the high quality of service, SRP trips continue to grow over
time, making up nearly 35% of all trips in January.
Of the 30 businesses located within SRP, 11 were among the top 25 Link pick-up and drop-off
locations, with the top locations being Stanford Medicine, Tesla, Rubrik, HP, and Lockheed
Martin. Reviewing an in-depth analysis of the times of pick-ups and drop-offs, staff also see that
the Link service remains complimentary to SRP’s existing Caltrain shuttles.
Future SRP Support
SRP has expressed its support for continuing Link and investing in the ongoing operation of the
service. The City is in discussions with SRP to determine the amount that they would like to
commit to Palo Alto Link moving forward.
SRP has also identified potential improvements that would even better serve their employers,
including expanded service hours to better meet commuting needs. In particular, SRP hosts
evening events that often end after Link has concluded. Staff have also identified several
“whitelist” points that may help facilitate reduced wait times at specific employer
headquarters. Staff believes that more targeted marketing and outreach to companies within
SRP could also facilitate increased use of the service.
Other Top Locations & Prospective Partners
Beyond facilitating commutes for SRP employees, Palo Alto Link connects riders to key
community sites, centers of employment, and transportation hubs. Table 1 summarizes the top
pick-up and drop-off locations.
Table 1: Palo Alto Link Top Locations, March 2023 – January 2024
Top Location % of all Link Trips
(average March - Jan)
Stanford Research Park 27%
(~30-35% in recent months)
Palo Alto & Gunn High Schools collectively 15%
(PA High School = 9%;
Gunn = 4%)
Stanford Mall 4%
Caltrain Stations (Palo Alto and CalAve Stations collectively) 2%
Cubberley Community Center 1.6%
Fletcher, Green, JLS Middle Schools 2%
Stanford Hospital 1.4%
Source: Via
The Palo Alto and Via teams have hosted a series of meetings with different community
stakeholders including Stanford Research Park, Tesla, Stanford Mall, the Palo Alto
Transportation Management Association (TMA), and Stanford University. To better understand
the particular mobility needs of specific stakeholders, staff have conducted outreach to the
following private partners:
1. Schools: Palo Alto Unified School District, Stanford University
2. Retail: Stanford Mall, Palo Alto Transportation Management Association, Town &
Country
3. Community and Senior Facilities: Channing House, Cubberley Community Center.
Outreach will determine whether stakeholders are willing to commit funds towards the ongoing
operation of Palo Alto Link.
Seniors continue to represent a key ridership demographic for Link. As such, local entities such
as Channing House have offered to contribute financially to the service to continue providing
mobility access for their residents to attend medical appointments, go grocery shopping, and
keep in touch with their friends and families. Staff are continuing to explore partnerships with
organizations like Channing House and other listed above which may be able and willing to
contribute financially to the existing Link service.
Future Scenarios for Consideration
Remaining Program Budget
The budget for this pilot program was $2,601,550, including $2,000,000 from the Santa Clara
Valley Transportation Authority (VTA) and up to $744,000 from the Stanford Research Park.
From March 2023 through January 2024, the City has spent $1,533,557 in fares, grant funds,
start-up costs, and SRP support to operate the service. With the remaining budget of
$1,067,993, Link could continue operating through August 2024, assuming operations with the
current level of service. The City has been awarded a Transportation Fund for Clean Air (TFCA)
grant which will provide $441,000 in additional funding which is expected to extend service
through November 2024 and replace hybrid wheelchair accessible vehicles (WAV) to electric
models. Transitioning to an all EV fleet entails some additional costs that have been built into all
the funding scenarios described below.
Funding Scenarios
Additional funds will be needed to continue service operation through the end of the 2024-25
fiscal year (through June 2025). The exact amount required to operate through June 2025 will
depend on the level of investment that the City decides to put into the service including
decision on the level of service provided. Staff have outlined four potential scenarios in Table 2
below, followed by more detailed descriptions of each.
Table 2: Potential Funding Scenarios for FY25
Scenario Description 12-Month Cost
(Jul '24 - Jun '25)
Net Funding Gap*
(additional $ above
remaining budget
estimated)
A. Current Service
Level
Increase supply by 5% to meet
organic demand growth
$1,800,000 $1,000,000
B. Service Hour
Extension + Supply
Growth
Scenario A plus extend the
weekday schedule by 3 hours
$2,300,000 $1,500,000
Source: Via and City of Palo Alto
*The funding gap equals the total cost to implement each scenario through June 2025, minus
the remaining funds in the pilot budget, minus the following new funds that will be available to
invest in the service:
1. $441,000 of awarded funds through Santa Clara County’s Transportation Fund for Clean
Air (TFCA) grant program
2. $31,000 per month from Stanford Research Park
3. $4,000 per month in fare revenue (FY 2024 current monthly average)
Scenario A: Current Service Level
To maintain the current level of service, this scenario increases supply by at least 5% to ensure
that the Link program can continue operating in a way that meets the needs of the community.
This assumes a forecasted increase in demand growth is supported by a 5% increase in supply
(vehicle service hours), which would require an additional investment of $1,000,000, and would
allow Link to absorb an expected demand increase of 5-10% over the coming year while
continuing to meet customer expectations for quality of service.
Scenario B: Service Hour Extension
Beyond supporting organic demand growth within the current service parameters, the City
could pursue minor service expansions in response to community feedback. As highlighted
below, Link riders are eager for the service to expand in terms of operating hours and coverage
area. While future geographic expansion may be desirable, this scenario extends the service
schedule as the top-priority expansion for Link in the coming year.
Specifically, this extends the weekday schedule by 3 hours (1 hour in the AM and 2 hours in the
PM) to capture anticipated demand in the morning and evening commute hours:
•Current Link Schedule: Monday - Friday 8 AM - 6 PM
•Proposed Link Schedule: Monday - Friday 7 AM - 8 PM
The cost of extending the service schedule as described above, combined with the cost of
increasing supply by 5% to support organic demand growth, Scenario B would require an
additional $1,500,000.
FISCAL/RESOURCE IMPACT
Additional funding for maintaining the current service level has been incorporated as a proposal
for the FY2025 Proposed General Fund Operating Budget. Staff continues to explore additional
strategic partners as well as additional grant opportunities to reduce the City’s cost. Funding
structure and summary of budget requirements will be developed based on the City Council’s
input and direction regarding future service levels desired. This budget allocation is part of the
Office of Transportation Operating Budget, to be reviewed as part of the FY 2025 Budget
process with the Finance Committee in May.
STAKEHOLDER ENGAGEMENT
Public engagement is ongoing since the program launched on March 7. Stakeholders 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 have included a project webpage
on the City’s website, flyer/brochure distribution, targeted presentations to special groups (i.e.
senior living communities), tabling at community events and destinations (MSC Open House,
Earth Day events, Farmer’s Market, Caltrain stations, grocery stores) and social media
campaigns (NextDoor, Facebook, Uplift Local, local newspapers, City blog posts, etc.). Stanford
Research Park has also been providing notification to and engagement with their stakeholders
to encourage ridership.
ENVIRONMENTAL REVIEW
Council action on this item is not a project as defined by CEQA because the necessary
agreements to continue service with partner agencies and identification of government funding
mechanisms or fiscal activity do not involve any commitment to any specific project that may
result in a potentially significant physical impact on the environment. CEQA Guidelines section
15378(b)(4). The Council has already found that Palo Alto Link is not a project as defined by
CEQA under CEQA guidelines 15061(b)(3).
APPROVED BY:
Philip Kamhi, Chief Transportation Official
April 1, 2024 www.cityofpaloalto.org/PaloAltoLink
Palo Alto LinkOne-Year ServiceEvaluation & Report
2
STAFF PRESENTING
Nathan Baird
Transportation Planning Manager, Office of
Transportation
nathan.baird@cityofpaloalto.org
650-329-2340
Philip Kamhi
Chief Transportation Official, Office of
Transportation
philip.kamhi@cityofpaloalto.org
650-329-2520
3
TODAY’S PRESENTATION
1.Background and Review Palo Alto Link
Performance
2.Highlight Palo Alto Link Rider
Demographics & Insights
3.Funding Review
4
Background
●Palo Alto Free Shuttle saw ridership decline over four
consecutive years.
●In 2017, the City Council examined transit strategies
and directed development of a flexible service model.
●The Crosstown Shuttle was terminated in April 2020
with a monthly average of 3,938 riders in its final fiscal
year.
●Palo Alto was granted $2 million by VTA’s Measure B
funds for the new Palo Alto Link service.
5
On-Demand Transit
Fare
•$3.50 –Regular adult
•$1.00 –Senior (65+)/disabled/low-
income/youth (5-17)
Hours
•Monday to Friday, 8am-6pm
Fleet
•9-vehicles: 6 Tesla Y model Evs & 3
Hybrid Toyota Siennas (wheelchair
accessible vans)
•All vehicles equipped with Bicycle
Racks
6
•Convenient shared-ride alternative to private
vehicles, with the ability to book on-demand trips
through an intuitive mobile app
•Seamless connections to key points of interest,
including major employers, transit hubs, schools,
and local shops
•Sustainable and accessible service, with a
custom-branded fleet of hybrid and wheelchair
accessible vehicles (book by phone or app)
PERFORMANCE SNAPSHOT
Palo Alto Link has unlocked an
accessible, efficient, and sustainable
way to get around Palo Alto.
50,220+
completed
rides
840+
unique riders
per month
13.8 min
average wait
time
4.8/5
average ride
rating
*Data from March 7, 2023 -February 29, 2024
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RIDERSHIP
Palo Alto Link ridership has grown steadily since launch in March 2023.
+54% Growth
Since March
2023
8
RIDERSHIP
Palo Alto Link continues to attract new riders while maintaining an engaged base of
repeat riders.Active Riders Split By New vs. Returning
73%+ of trips
were taken by
returning riders.
9
RIDERSHIP
Riders use Palo Alto Link to reach key community resources, including schools,
employers, transit hubs, and local shops.
Top Pickup/Dropoff
Locations
% of Total Trips
(Sep-Jan Avg.)
Stanford Research Park 32%
Palo Alto High School 7%
Stanford Mall 4%
Gunn High School 3%
Palo Alto Caltrain Station 3%
Stanford Hospital 2%
8
WAIT TIMES
While Palo Alto Link riders typically accept wait times up to 30 minutes, over 80% of
requests receive a wait time below 20 minutes.
Trip Acceptance Rate & Demand Distribution
Broken Down By Proposed Wait Time
78% of requests
receive an est.
wait time under
20 minutes
9
RIDER DEMOGRAPHICS & INSIGHTS
Riders have come to love and rely on Palo Alto Link for essential mobility.
Survey Question:
"How disappointed
would you be if you
could no longer use
Palo Alto Link?”
10
RIDER DEMOGRAPHICS & INSIGHTS
The rider base is diverse in terms of employment status and age.
Survey Question:
“What is your employment status?”
*Based on 265
survey responses
collected Sep-Oct
2023
Survey Question:
“What is your age?”
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RIDER DEMOGRAPHICS & INSIGHTS
“I am getting older and need a way to get to the doctor, store, repair shops etc.”
“Link gives me greater independence since I no longer drive or own a car.”
“I love the social aspect of riding with driver and others.”
“The service is very approachable for seniors.”
“I anticipate that it will be increasingly important to me as aging inevitably restricts my other means
of getting around.”
Palo Alto Link provides independence for seniors and those with mobility limitations.
12
RIDER DEMOGRAPHICS & INSIGHTS
Palo Alto Link is encouraging residents to choose shared transit over high-emission
private vehicle travel.
Survey Question:
“How would you have made your
most recent Link trip if it wasn’t an
option?”
52% would have used
Uber/Lyft/taxi or a personal car
Survey Question:
On your last Link trip, did you use the
service to connect to other forms of
transit?
16% report using Link to connect
to other forms of transit
13
FUNDING & FARE RECOVERY
As a pilot program, Palo Alto Link is currently funded with a Valley Transportation
Authority (VTA) Innovative Transit grant, Stanford Research Park (SRP) partnership
fees, and fares. Initial pilot funding from VTA (totaling $2 million) provides ~18
months of service.
Example monthly breakdown of funding & fare recovery
Feb 2024 Trips VTA Contribution SRP Contribution Fare Revenue Total Cost
4,647 $105,000.00 $31,000.00 $4,647.00 $140,647.00
per trip costs:$22.60 $6.67 $1.00 $30.27
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POTENTIAL FUNDING SCENARIOS FOR FY25
Potential Funding Scenarios for FY25
Scenario Description 12-Month Cost (Jul '24 -Jun
'25)
Net Funding Gap*
(additional $ above
remaining budget
estimated)
A. Current Service Level
Increase supply by 5% to
meet organic demand
growth
$1,800,000 $1,000,000
B. Service Hour Extension +
Supply Growth
Scenario A plus extend the
weekday schedule by 3
hours
$2,300,000 $1,500,000
*Net Funding Gap represents the additional funding required above the estimated remaining budget.
Nathan Baird
Transportation Planning Manager, Office of Transportation
nathan.baird@cityofpaloalto.org
(650) 329-2340
www.cityofpaloalto.org/PaloAltoLink