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HomeMy WebLinkAboutStaff Report 2603-6168CITY OF PALO ALTO CITY COUNCIL Special Meeting Monday, May 11, 2026 Council Chambers & Hybrid 4:30 PM     Agenda Item     B.Palo Alto Transportation Management Association 2025 Annual Report, 2027-29 Strategic Plan, and 2025 Commute Survey City Council Staff Report From: City Manager Report Type: INFORMATION Lead Department: Transportation Meeting Date: May 11, 2026 Report #:2603-6168 TITLE Palo Alto Transportation Management Association 2025 Annual Report, 2027-29 Strategic Plan, and 2025 Commute Survey RECOMMENDATION No action is recommended; this is for information only. The 2025 Annual Report, 2027-29 Strategic Plan, and 2025 Commute Survey by the Palo Alto Transportation Management Association are being transmitted for compliance with the contractual agreement. EXECUTIVE SUMMARY The City contracts with the Palo Alto Transportation Management Association (TMA) to implement programs to reduce single-occupancy vehicle (SOV) trips to and from Palo Alto. The funding agreement between the Palo Alto TMA and the City restricts the use of City funds to trip reduction programs and requires the TMA to report on the use of these funds. The attached Annual Report covers the 2025 calendar year, detailing how the City’s contribution was used to support SOV trip reduction, including the results of the Fall 2025 Commute Survey. The attachment also includes the FY 2027-29 TMA Strategic Plan. The work of the TMA supports the City’s Sustainability and Climate Action Plan (S/CAP) Goals by working to reduce vehicle miles traveled and increasing the mode share for active transportation and transit. Additional program history can be found in the April 23, 2024, Finance Committee Staff Report.1 1 Finance Committee, April 23, 2024, Agenda Item #6; SR #2403-2761, https://cityofpaloalto.primegov.com/meetings/ItemWithTemplateType?id=4692&meetingTemplateType=2&co mp iledMeetingDocumentId=9724 BACKGROUND 3￿ TMA formation was a key component of this approach. To this end, on August 11, 2014, City authorized a consulting contract that resulted in TMA-formation as a program of Silicon Valley Community Foundation in January 20164￿ Palo Alto TMA was subsequently incorporated as a 501(c)(3) non-profit entity on February 12, 2018. Table 1: Comprehensive Plan Policies and Programs related to PATMA Policy Program Description T-1.1 Take a comprehensive approach to reducing single-occupant vehicle trips by involving those who live, work and shop in Palo Alto in developing strategies that make it easier and more convenient not to drive. T-1.2 Collaborate with Palo Alto employers and business owners to develop, implement and expand comprehensive programs like the TMA to reduce single-occupant vehicle commute trips, including through incentives. T1.2.1 Create a long-term education program to change the travel habits of residents, visitors, shoppers and workers by informing them about transportation alternatives, incentives, and impacts. Work with the PAUSD and other public and private interests, such as the Chamber of Commerce and Commuter Wallet partners, to develop and implement this program. T1.2.4 Evaluate the performance of pilot programs implemented by the Palo Alto Transportation Management Association and pursue expansion from Downtown to California Avenue and other areas of the city when appropriate. T1.2.6 Pursue full participation of Palo Alto employers in the TMA. T-1.13 Encourage services that complement and enhance the transportation options available to help Palo Alto residents and employees make first/last mile connections and travel within the city for daily needs without using a single- occupancy vehicle, including shuttle, taxi and ridesharing services. T-2.2 As part of the effort to reduce traffic congestion, seek ongoing funding and engage employers to operate and expand TMAs to address transportation and parking issues as appropriate in the City’s employment districts. 3 City Council, September 16, 2013, Agenda Item #12; SR #4087, https://recordsportal.paloalto.gov/WebLink/DocView.aspx?id=757&dbid=0&repo=PaloAlto&searchid=5783b38f- f4fb-425c-afda-dd1615e126cc 4 City Council, August 11, 2014; Agenda Item #4; SR #4766, https://www.cityofpaloalto.org/civicax/filebank/documents/43344 Table 1: Comprehensive Plan Policies and Programs related to PATMA Policy Program Description T2.2.1 Work in partnership with the Palo Alto TMA and Stanford University to aggregate data and realize measurable reductions in single-occupant vehicle commuting to and from Downtown and in the Stanford Research Park. T-5.5 Minimize the need for employees to park in and adjacent to commercial centers, employment districts and schools. T7.1.1 Expand transportation opportunities for transit-dependent riders by supporting discounts for taxi fares, rideshare services and transit, by coordinating transit systems to be shared by multiple senior housing developments, by maintaining a database of volunteer drivers and other transit options. Between 2016 and the present, Council has authorized funding agreements with PATMA to support TDM programs aimed at reducing vehicular trips and parking demand in Palo Alto’s commercial areas. During 2020, programs were adjusted to provide additional service for essential workers; and in 2021 programs were expanded from Downtown to the California Avenue Business District. Programs were also adjusted in response to changed user preferences and participation rates following the pandemic: Scoop and WAZE carpool programs were discontinued between 2021 and 2023, and the Bike Love incentive program was added in 2022. The Bike Love program provides $5 per day (up to $600 per year) to new bicycle or e-scooter commuters in geofenced employment areas in the city. In partnership with Palo Alto-based non-profit Silicon Valley Bicycle Exchange, PATMA also provides refurbished bikes at no cost to drivers who wish to begin bicycling to work in Palo Alto. On September 11, 2023, Council approved the current three-year funding agreement with PATMA, which provided $242,000 in FY 2024 (with $25,000 to reduce SOV trips beyond the California Avenue and Downtown districts), $400,000 in FY 2025, and $400,000 in FY 2026. The FY 2025 and FY 2026 amounts include a new $10,000 Electric Bike/Scooter Pilot program from the City’s Utilities Department and a $200,000 budget to serve to workers citywide in addition to maintaining the same balance of $200,000 for services in the Downtown and California Avenue districts. Funding levels, program types and outputs are summarized in Table 2. Outputs are summarized by calendar year and therefore summaries are not yet available for 2026, while funding is listed by fiscal year. Table 2: Summary of PATMA Results, 2018-2025 2016 2017 2018 2019 2020*2021 2022 2023 2024 2025 2026 # Parking Spaces Freed Up**~134 ~393 331 333 360 125 125 266 312 487 # Transit Pass Participants 42 102 227 221 260 119 120 252 300 468 # Lyft Active Users (3+/wk)4 18 10 7 10 5 4 3 4 3 # Waze Active Users start ~100 44 95 88 0.7 0.5 stop #Scoop Registrations 666 1,308 # Scoop Active Users ~88 173 50 10 2 stop # Bike Love Users (3+/wk) start 11 8 16 # Bike Love Users (1+/mo) 33 29 43 # Survey Responses NA NA 496 1,471 N/A 551 511 738 885 920 FY agreement amount ($k)100 100 480 480 750 350 150 200 242 400 400 Council approval or consideration date 6/13/16 2/13/17 7 6/27/17 12/10/18 5/15 & 6/17/19 8 5/13 & 5/26/20 9 11/30/20 6/2021 6/2022 9/11/23 3/x/24 10 2/12 & 6/17/24 11 6/16/25 12 *Numbers for Q1 only due to pandemic **Transit pass holders + Lyft users + Waze users + Scoop users + Bike Love 3+ users 7 City Council, June 13, 2016: Agenda Item #10; SR #6823, https://www.cityofpaloalto.org/civicax/filebank/documents/52687 8 Finance Committee, April 16, 2019; Agenda Item #4; SR #10198, https://www.cityofpaloalto.org/civicax/filebank/documents/70194, Presentation: https://www.cityofpaloalto.org/civicax/filebank/blobdload.aspx?t=63435.61&BlobID=70664 9 City Council, May 26, 2020; Informational Report; SR #11307, https://www.cityofpaloalto.org/civicax/filebank/blobdload.aspx?t=64175.41&BlobID=76770; City Council, May 26, 2020; Agenda Item #1; SR #11376; https://www.cityofpaloalto.org/civicax/filebank/documents/76803, Action Minutes: https://www.cityofpaloalto.org/civicax/filebank/blobdload.aspx?t=48631.05&BlobID=77870 10 City Council, September 11, 2023; Agenda Item #7; SR #2308-1883; 11 City Council, February 12, 2024; Agenda Item #11; SR #2311-2233; https://cityofpaloalto.primegov.com/meetings/ItemWithTemplateType?id=3638&meetingTemplateType=2&comp iledMeetingDocumentId=9079; City Council, June 17, 2024; Agenda Item #28; SR#2406-3140; https://cityofpaloalto.primegov.com/meetings/ItemWithTemplateType?id=5334&meetingTemplateType=2&compile dMeetingDocumentId=10470 12 City Council, June 16, 2025; Agenda Item #23, SR #2503-4250; https://recordsportal.paloalto.gov/WebLink/DocView.aspx?id=6448&dbid=0&repo=PaloAlto ANALYSIS Regular reports are required under the TMA’s funding agreement with the City. In the past year, the TMA has reached new service milestones by providing commute support to over 500 workers. The TMA helped 471 low-income workers either via free transit passes or guaranteed rides home via an after-hours Lyft service. An additional 59 commuters participated in the Bike Love $5/day program. These programs reduced daily parking demand by almost 500 spaces in business districts. To support new transit users, PATMA provides free Clipper Cards loaded with annual or monthly passes for Caltrain, VTA buses, SamTrans buses, and Dumbarton Transbay buses. The TMA receives free Caltrain GoPasses via Caltrain’s PassForward Program which provides over $1.5 million in transit pass value yearly to the TMA. To support new bicyclists, PATMA promotes its Bike Love incentive app and provides free refurbished bicycles. A feature of the Bike Love app designed by mobile app developer Motion is the restriction that the $5 per day incentive (up to $600 per year) be spent at Palo Alto businesses, thereby re-circulating City funds into the local economy. The attached Annual Report covers the 2025 calendar year, detailing how public funds were spent to support SOV trip reduction, including the results of the Fall 2025 Downtown Commute Survey. The attachment also includes the 2027-2029 TMA Strategic Plan which is required to be updated by the funding agreement. The Annual Report highlights several accomplishments, noting that in 2025, the TMA: Reduced close to 500 parking spaces not needed in commercial areas around Palo Alto Serves and markets to low wage service sector workers beyond Downtown and California Ave, such as along El Camino Real, at the Stanford Mall, in Midtown, and in South Palo Alto Supports small businesses around the Caltrans El Camino Real repaving project by offering train and bus passes and refurbished bikes to workers who used to park on El Camino Real The following insights gleaned from the 2025 Commute Survey point to additional mode shift opportunities among workers in Palo Alto. Overall, the drive alone rate fell from 62% among respondents last year to 55% this year. The highest drive alone rates are among government employees even though their drive alone rate fell from 72% in 2024 to 67% in 2025. (BayPass for benefitted City of Palo Alto workers became available mid-2025.) 72% of respondents live in cities served by a train or bus that runs to Palo Alto. Service sector workers tend to live closer to work and government workers tend to live farthest away. 136 respondents (14.7%) live less than five miles from work and are open to an active commute. Total travel time or schedule is the overarching consideration when deciding how to commute. (Total travel time includes in-vehicle time plus access time and wait time, which is affected by service reliability or on-time performance.) 217 respondents (23.5%) said they needed more bike parking at work Barriers to a sustainable commute include perceptions about the timeliness of trains and buses, safety of stations and stops, safety of biking and scootering on roads with cars, and demands outside of work on their time. These data point to the potential for mode shift among workers who live less than five miles from work or who can take one train or bus to work in Palo Alto. Policy Implications The City’s Sustainability and Climate Action Plan (S/CAP) includes two mobility goals that are directly supported by the work of the TMA: Reduce total vehicle miles traveled 12% by 2030, compared to a 2019 baseline, by reducing commute vehicle miles traveled 20%, visitor vehicles miles traveled 10%, and resident vehicle miles traveled 6% Increase the mode share for active transportation (walking, biking) and transit from 19% to 40% of local work trips by 2030 In addition, the transportation demand management (TDM) services provided by the TMA are consistent with Comprehensive Plan policies and programs as listed in Table 1. FISCAL/RESOURCE IMPACT The current funding agreement is a three-year agreement expiring at the end of FY 2026 (June 30, 2026). As part of the FY 2026 Adopted Budget, a total of $400,000 was approved as the ongoing funding amount for the TMA from the University Avenue Parking Fund ($200,000) and the General Fund ($200,000). STAKEHOLDER ENGAGEMENT Monthly Palo Alto TMA Board of Directors meetings are open to the public and occur at 9 a.m. on the third Thursday of the month. Information about board meetings can be found at the Palo Alto TMA website: https://www.paloaltotma.org/ ENVIRONMENTAL REVIEW Transmission of these reports is for informational purposes only and does not approve any specific project or funding. It can be seen with certainty that there is no possibility of a significant impact on the environment (State CEQA Guidelines Section 15061(b)(3)) and this item is exempt from CEQA review. Attachment A: 2025 Palo Alto TMA Annual Report, 2027-29 Strategic Plan, and 2025 Commute Survey : Ria Hutabarat Lo, Chief Transportation Official March 25, 2026 Palo Alto City Councilmembers Subject: PATMA’s 2025 Annual Report, Three-Year Strategic Plan, and 2025 Commute Survey Dear Councilmembers , The non-profit Palo Alto Transportation Management Association (PATMA) is pleased to present three reports for your consideration. Written in an easy to skim style, you will see attached PATMA’s 2025 Annual Report, Three-Year Strategic Plan (FY 2027 – FY 2029), and 2025 Commute Survey. In FY 2025, PATMA’s budget was restored to $400,000/year, closer to pre-pandemic levels. With the same budget level in FY 2027, we anticipate that 500 parking spaces will be freed up, greenhouse gas emissions reduced, and local businesses supported . We also understand the City’s budget situation and offer two additional budget scenarios. Three Budget Scenarios for FY 2027 Program Elements Expenses - $400,000 budget Expenses - $375,000 budget Expenses - $350,000 budget Transit Passes $262,504 $242,504 $217,504 Bike Love Rewards $45,242 $45,242 $45,242 Commute Survey $30,000 $25,000 $25,000 Refurbished Bicycles $5,200 $5,200 $5,200 Lyft Afterhours Rides Home $4,573 $4,573 $4,573 PATMA Administration $35,144 $35,144 $35,144 Business Expenses $17,337 $17,337 $17,337 Total $400,000 $375,000 $350,000 In the $375,000 budget scenario, PATMA expects to free up 450 parking spaces . With this lower budget, PATMA would cut staff program hours, reduce marketing on transit passes, and collect fewer commute survey responses. In the $350,000 budget scenario, PATMA would cut back further on staff hours, reduce marketing efforts, purchase fewer transit passes, collect fewer commute survey responses, and would expect to free up 400 parking spaces . PATMA is pleased to support the City Council’s 2026 goals of economic development and government efficiency, as well as its leadership on climate action. Let me know if you have any questions. Kind regards, Justine Burt Executive Director, Palo Alto Transportation Management Association 2025 Annual Report Three-Year Strategic Plan (FY 2027 - FY 2029) 2025 Commute Survey Submitted to the Palo Alto City Council and Finance Committee March 13, 2026 Prepared by: Palo Alto Transportation Management Association 855 El Camino Real #13A-200, Palo Alto, CA 94301 www.paloaltotma.org 2025 Annual Report January 1, 2025 – December 31, 2025 Submitted to the Palo Alto City Council Prepared by: Palo Alto Transportation Management Association 855 El Camino Real #13A-200, Palo Alto, CA 94301 www.paloaltotma.org March 2026 Table of Contents Executive Summary ......................................................................................................................... 1 Introduction .................................................................................................................................... 1 About PATMA .................................................................................................................................. 2 PATMA’s Top Five Accomplishments .............................................................................................. 3 Programs ......................................................................................................................................... 4 Benefits of PATMA Programs .......................................................................................................... 8 Program Results .............................................................................................................................. 9 Finances ........................................................................................................................................ 13 Conclusion ..................................................................................................................................... 16 1 Palo Alto Transportation Management Association 2025 Annual Report Executive Summary With leadership from the City of Palo Alto, as well as collaborative partnerships with regional transit agencies, local community-based organizations, and grantmaking organizations, in 2025, the Palo Alto Transportation Management Association (PATMA) delivered a dramatic increase in program results. PATMA’s sustainable transportation programs for workers – free train and bus passes, $5/day Bike Love bicycle commute incentive rewards, free refurbished bicycles, after-hour Lyft rides, and an e-bike e-scooter pilot – resulted in a reduction in demand for 482 parking spaces around town, 2,933,038 fewer vehicle miles traveled, and 1,152 fewer tons of greenhouse gas emissions. With these accomplishments, PATMA supported three of the 2025 Palo Alto City Council’s four priorities: economic development & retail vibrancy, climate change, and community health. Highlights of PATMA’s work in 2025 included: • Impact of program work o Close to 500 parking spaces not needed in commercial areas around Palo Alto • Geographic reach o Now serving low wage service sector workers around town: Downtown, on California Ave, along El Camino Real, at the Stanford Mall, at Midtown, and in South Palo Alto o In these areas, PATMA marketed sustainable transportation information and incentives and conducted the annual commute survey • Small business support o Around Caltrans’ El Camino Real repaving project where bike lanes replaced 220 on-street parking spaces, PATMA offered train and bus passes and refurbished bikes to workers who park on El Camino These developments lay a strong foundation for PATMA’s future work to accomplish even more sustainable transportation mode shift. Introduction The Palo Alto TMA is a non-profit working to reduce single-occupancy vehicle (SOV) commute trips, traffic congestion, demand for parking and greenhouse gas emissions by delivering targeted transportation solutions to Palo Alto workers. Financial support for this work comes from the City of Palo Alto’s University Avenue and California Avenue parking funds and from 2 the City’s General Fund. This funding allows PATMA to provide free transit passes, $5/day Bike Love rewards, refurbished bicycles, and late-night Lyft rides chiefly to low wage service sector workers in the commercial districts of Palo Alto. About PATMA Staff PATMA is a non-profit, staffed by ALTRANS TMA Inc., a firm specializing in transportation demand management (TDM). Staff providing on-going support for PATMA include: ● Justine Burt, Executive Director ● Lucey Gorrill, TDM Coordinator ● Stephen Blaylock, President, ALTRANS TMA Inc. ● Andrew Ridley, Chief Operating Officer, ALTRANS TMA Inc. Board of Directors In 2025, the City of Palo Alto’s new Chief Transportation Official Ria Hutabarat Lo joined PATMA’s board while Nathaniel Duncan moved on from his role at Patagonia as the Store Manager and stepped down from the PATMA Board. At the end of the year, board members included: ● Cedric de la Beaujardiere, resident (Board Chair) ● Rob George, Philz Coffee (Treasurer and a founding board member) ● Shannon Rose McEntee, retired and resident (Secretary) ● Ria Lo, City of Palo Alto ● Sebastian Mafla, Sheraton ● Alejandra Mier, Coupa Café ● Steven Lee, attorney and resident The PATMA board meets monthly on the third Thursday at 9:00am and efficiently works through one hour of agenda items. Nearly all board members regularly attend. The public is encouraged to join these virtual meetings. Meeting details and zoom links can be found on our Meetings page at https://www.paloaltotma.org/bod-meetings. Mission and Core Values PATMA’s mission statement reads “Better commutes for everyone.” Our core values describe how our non-profit improves life for the workers and residents of Palo Alto: • Traffic and parking – reduce traffic congestion and demand for parking • Climate change – transition to a zero-emission transportation system • Equity – fair outcomes, treatment and opportunities for all • Local businesses – help local businesses attract and retain employees • Health – encourage community health 3 Incorporating City of Palo Alto Priorities While the original motivation for the Palo Alto City Council to create PATMA was to alleviate traffic congestion and reduce demand for parking downtown, each year, PATMA overlays the City Council’s stated priorities to guide its work. In January 2025, the City Council announced its priorities for the year: 1. Implementing Housing Strategies for Social & Economic Balance 2. Climate Action & Adaptation, and Natural Environment Protection 3. Economic Development & Retail Vibrancy 4. Public Safety, Wellness & Belonging PATMA’s work supports three of these priorities: climate action, economic development & retail vibrancy, and public wellness. Regarding City Council’s priority of addressing climate action, PATMA helps reduce greenhouse gases from on-road transportation sources which are 56.8% of Palo Alto’s emissions, according to the City’s 2024 Greenhouse Gas Emissions inventory. One-third of these on-road transportation sources come from commuters which PATMA helps mode shift to sustainable transport. Supporting City of Palo Alto’s Sustainability/Climate Action Plan (S/CAP) The City of Palo Alto set a goal to reduce greenhouse gas emissions 80% below 1990 levels by 2030 and to become carbon neutral by 2030. One S/CAP mobility goal relevant to PATMA regarding reducing greenhouse gas emissions is “increasing the mode share for active transportation (walking, biking) and transit from 19% to 40% of local work trips by 2030.” The S/CAP focuses on launching effective programs for emissions reductions with the highest impact and lowest cost. PATMA’s programs help accomplish this goal as noted in the following section. Note that in the 2022 Greenhouse Gas Emissions Inventory, on -road transportation sources contributed 51.7% of GHGs. The jump to 56.8% in 2024 makes PATMA’s work even more vital to the City’s GHG reduction goals. PATMA’s Top Five Accomplishments The following provide highlights of PATMA’s work in 2025. 1. Reduced 1,152 tons of greenhouse gas emissions in 2025, a reduction beyond 603 tons in 2024 2. Continued to grow the transit pass program from a pandemic-induced low of 28 people served in May 2020 to a high of 468 in December 2025. Figure 1 shows the number of PATMA-granted transit passes in circulation among Palo Alto workers over the past seven years. Note that PATMA issued 522 transit passes but due to some worker turnover or people not activating passes, 468 were activated as of the end of 2025. 4 Figure 1: Transit Passes Activated 2019 – 2025 3. Received approval from transit agencies to continue distributing Caltrain GoPasses in 2025 and VTA SmartPasses through August 2025 to low wage service sector workers to help grow transit ridership. 4. Activated and distributed 352 Caltrain GoPasses from the Caltrain GoPass Donation Program. Likewise, 63 VTA SmartPasses were distributed to low wage service sector workers in 2025. 5. Completed e-bike and e-scooter pilot program with City of Palo Alto Utilities funding to develop case studies that will inspire other low wage service sector workers to consider active commutes. These activities demonstrate the power of partnerships with local and regional organizations as well as the trust PATMA has established with local business managers. Programs With funding from the City’s University Avenue Parking Fund, California Avenue Parking Fund, and General Fund, PATMA provides free Clipper Cards loaded with annual or monthly passes for Caltrain, VTA buses, SamTrans buses, and Dumbarton Transbay buses. PATMA also offers $10 5 credits for after-hours Lyft rides of less than five miles, refurbished bicycles at no cost to the recipient, and $5/day Bike Love rewards for biking or e-scootering to work. During 2025, PATMA conducted extensive outreach along El Camino Real around Caltrans’ repaving and protected bike lanes installation to help mitigate the loss of on-street parking to small businesses. PATMA also continued to market mode shift programs in other commercial areas such as Downtown, along California Ave, at the Stanford Mall, at Midtown, and in South Palo Alto. Service sector workers who receive transit passes work primarily in food service establishments, retail, accommodation, and dental and medical offices. Light office workers who receive transit passes or accrue Bike Love rewards include staff at banks, insurance agencies, real estate management companies, and in educational services (tutoring). Programs with income thresholds Train and bus passes Transit pass benefits are provided to employees earning less than $111,700 per year who work in the commercial areas of Palo Alto and who do not already receive employer-supported TDM benefits. Workers at the Stanford Research Park, at Stanford University, and at developments with TDM plans are ineligible for PATMA’s programs as these organizations have their own TDM programs. Pilot: E-bicycles and e-scooters With funding from the City of Palo Alto Utilities Department, in 2025 PATMA wrapped up a pilot program to study e-bikes and e-scooters for active mobility commutes. Five pilot participants making less than $70,000/year received either an e-bike or a 12-month e-scooter lease. The intent was to study how many times a week they used the e-bike or e-scooter, how many miles they commuted, and understand barriers to device use. Insights gleaned will inform new PATMA active mobility pilots and programs moving forward. Refurbished bicycles In 2025, PATMA continued working with local non-profit Bike Exchange to provide eight refurbished bicycles and safety gear to essential workers. This p rogram is open to workers making less than $111,700/year. Figure 2 shows eight Palo Alto-based essential workers receiving their refurbished bicycles. 6 Figure 2: Essential Workers Take Delivery of Their “New” Refurbished Bikes Maria Jamilah Ahmed Claudia Grisel Sarat 7 Cody Eddy Lyft after-hours rides PATMA’s Lyft after-hours program provides rides home after transit stops running to workers commuting less than five miles. PATMA programs without an income threshold Bike Love rewards The Bike Love smartphone app provides daily incentives for active mode first-mile commute trips to transit and active mode commutes between home and work, of $5/day up to $599 per year per commuter. Automated travel mode detection identifies eligible bike, e-bike, e-scooter, and e-skateboard trips. Eligibility is determined by trips that stop or start within geofences around 30 Caltrain stations and seven commercial areas (Downtown, California Ave., Stanford Mall, El Camino Real, Midtown, and two areas East of Highway 101). Incentive dollars are instantly redeemable at local merchants via reloadable Apple/Google Wallet Virtual Visa cards. Figure 3 shows the current geofences that mark commute destinations where workers earn rewards. This map includes Caltrain stations, for workers who use a bike or e -scooter for first/last mile, as well as expanded commercial areas. Figure 3: 2025 Bike Love Geofence Boundaries 8 In 2025, 49% of the total number of transactions and 27% of the transaction value of redeemed rewards happened in Palo Alto, in support of the City Council’s 2025 priority for retail vitality. The ability of Bike Love users to redeem incentives at Palo Alto businesses helps keep dollars in the local economy. Figure 4 provides detail about where Bike Love users spent their reward funds. Figure 4: Where Bike Love Rewards Were Spent in 2025 All Palo Alto Mountain View Redwood City San Francisco San Carlos Sunny- vale Menlo Park Amazon or online Other cities Transactions value ($) 23,700 6,413 267 973 1,316 148 420 2,361 7,311 4,491 Number of transactions 1,582 777 38 78 62 16 21 114 228 248 Source: Motion This information is gathered from merchant identification numbers where rewards are redeemed. Part way through 2025, after conferring with the bank that issues the rewards, Motion (the software programming start-up that developed Bike Love) changed the app to only allow redemptions at Palo Alto brick and mortar businesses. For a quick overview video explaining the app, please visit Bike Love in 80 seconds (video). Benefits of PATMA Programs While PATMA programs save service workers and light office workers money on their commutes, many other benefits of these programs accrue to local businesses, workers, and Palo Alto residents. Businesses For business owners and managers, PATMA participation gives them a competitive advantage over similar businesses in nearby cities. Being able to provide transit passes to their employees helps shops, restaurants, and hotels attract and retain workers in competitive industries with high rates of staff turnover. Workers Workers who stop driving not only save money on variable vehicle costs such as gasoline, maintenance, and repairs, they also escape the stress of having to drive in traffic congestion and find parking. The workers who commute by active modes enjoy the benefits of exercise that allow them to arrive at work energized and refreshed. Palo Alto Residents PATMA’s programs on the City’s behalf reduce traffic congestion, free up parking spaces in commercial areas, and enhance the quality of life for residents by reducing the number of cars circulating on City streets and parked in lots, garages, and neighborhoods. 9 Program Results Results of the TMA’s program management, marketing, and administrative labor in Figures 5 - 11 depict the number of transit passes distributed by employer, types of transit passes distributed along El Camino Real, number of commuters shifted to sustainable mode, cost per user, parking spaces not needed, avoided vehicle miles traveled, and tons of greenhouse gases reduced. Among all businesses served, Figure 5 breaks out by business the number of their employees in descending order who had an active train or bus pass from PATMA in 2025. Figure 5: Number of Transit Passes Distributed by Employer in 2025 Employers Transit Pass Count Sheraton/Westin 45 Neiman Marcus 24 Bloomingdale's 19 Nobu Hotel 18 Whole Foods Market 17 Patagonia 15 Ettan 14 Apple 13 Macy's 13 Walgreens 11 Wells Fargo 10 AJ Tutoring 8 Philz Coffee 8 Rooh 8 Sephora 8 Coupa Café 7 Khazana 7 Crepevine 6 NOA Technologies 6 Rangoon Ruby 6 Avenidas 5 Backcountry 5 Citibank 5 Oren’s Hummus 5 Panda Express 5 True Food Kitchen 5 Agile Physical Therapy Sutter Health (contractor to PAMF) 4 Employers Transit Pass Count Blue Bottle Coffee 4 Christine Hansen DDS & Associates 4 Glass Slipper Inn 4 Lytton Gardens 4 Peloton 4 The Melt 4 The Real Real 4 Buca di Beppo 3 Comfort Inn 3 Local Union 271 3 Lululemon 3 Modern Animal 3 Mollie Stone's Market 3 Pacific Catch 3 Palo Alto Orthodontics 3 PIP Printing of Palo Alto 3 Rails Clothing 3 San Agus 3 Vein Treatment Clinic (VIP) 3 Vince 3 Watercourse Way 3 Webster House 3 Americas Best Value Inn Sky Ranch Palo Alto 2 Anthropologie 2 Arya Steakhouse 2 Coach 2 Crowne Plaza Hotel 2 Employers Transit Pass Count Dion Health 2 Equinox 2 Fleming’s Prime Steakhouse 2 Hobee's 2 Hotel Keen 2 L&P Aesthetics 2 Lenscrafters 2 Levi’s 2 Macarena Restaurant 2 Nordstrom 2 On Running 2 Palo Alto Bicycles 2 Palo Alto Inn 2 Palo Alto Oral & Maxillofacial Surgery 2 Peninsula Creamery 2 Ramen Kowa 2 Spring Spa 2 Summit Bicycles 2 Sunglass Hut 2 Tacolicious 2 University Chiropractic & Wellness 2 West Elm 2 Wetzel’s Pretzels 2 Yayoi 2 Allbirds 1 Arcteryx 1 Banana Republic 1 10 Employers Transit Pass Count Beckstead Dental Group 1 Bell's Books 1 Beyond Explorations 1 Blue Danube Spa 1 Café 220 1 Cardinal Hotel 1 Chanel 1 Channing House 1 Christopher B. Wong DDS 1 City National Bank 1 City of Palo Alto 1 American Express (Employee: Kingston Technologies Inc) 1 Club Pilates 1 Curry Up Now 1 Dental office 1 Dinah's Garden Hotel 1 Dr Phillip Fletcher 1 Dr. William Tseng 1 Elisha Marie Skin & Body 1 Evvia Estiatorio 1 Fast Repair 1 Fjallraven 1 Free People 1 Gap 1 Go Fish Poke Bar 1 Guckenheimer: Palo Alto Club 1 H&R Block, Block Advisors 1 Hassett Hardware 1 Hummus Mediterranean kitchen 1 Illuminate Plastic Surgery 1 J Crew 1 Jerold H Lipson, D.D.S., M.S. Inc 1 Employers Transit Pass Count Joe & The Juice 1 K. Minamoto 1 KEEN 1 KinderCare Downtown Palo Alto 1 Kowa Ramen 1 La Bodeguita del Medio 1 La Selva Group 1 Landscaping 1 Law Office of Peter S. Stern 1 Levi's 2 Local Union 271 3 Mademoiselle Colette 1 Magnussen's Toyota of Palo Alto 1 McDonald's 1 Mendocino Farms 1 Nola's 1 Northern California Women's Imaging Center 1 Osteria Toscana 1 Outerknown 1 Palo Alto Academy Bilingual Montessori 1 Palo Alto Dermatology Institute 1 Palo Alto Pathology 1 Palo Alto Weekly 1 Pinkberry 1 PIP Printing of Palo Alto 3 Provident Credit Union 1 Reformation 1 Restaurante Macarena 1 Sanford Heisler Sharp McKnight, LLP 1 School of Rock 1 Silicon Valley Bicycle Exchange 1 Employers Transit Pass Count SkinSpirit 1 Sprinkles 1 Sprout Cafe 1 Starbucks 1 Sunglasses Hut 1 Sutter Health 1 Tamarine Restaurant 1 Taverna 1 Terun 1 Tesla 1 The Bike Connection 1 The IO Clinic 1 The North Face 1 The Palo Alto Inn 1 The Zen Hotel 1 Therabody 1 Tidal Partners 1 Tinder 1 Trader Joes 1 University Optometry 1 Urban Outfitters 1 VCA Palo Alto Animal Hospital 1 Victra 1 Visual Comfort & Co. 1 Vitality Bowls 1 Vuori 1 Waverley Surgery Center 1 Williams Sonoma 1 Woof Gang Bakery 1 Xfinity 1 Zola + BarZola 1 Grand Total (issued passes) 522 Figure 6 provides the number of transit passes PATMA distributed to businesses along El Camino Real (between Park Blvd and San Antonio Rd) by month. PATMA’s proactive transit pass outreach efforts were conducted along with Silicon Valley Bicycle Coalition volunteers to help reduce demand for parking around the time of the Caltrans repaving and bike lane project in 2025. 11 Figure 6: Transit Passes Distributed Along El Camino Real by Month in 2025 Month Caltrain VTA SamTrans Dumbarton Express Jan 3 7 0 0 Feb 1 4 0 1 Mar 1 0 0 0 Apr 0 0 0 0 May 4 3 0 0 Jun 2 1 0 0 Jul 1 1 0 0 Aug 0 0 0 0 Sep 3 0 0 1 Oct 0 0 0 0 Nov 1 3 1 0 Dec 0 1 0 0 Total 16 20 1 2 Overall, PATMA’s marketing and outreach efforts throughout Palo Alto in 2025 resulted in the following impacts. Figure 7: Number of Commuters Shifted to More Sustainable Commute Mode (average of three months) Program Q1 2025 Q2 2025 Q3 2025 Q4 2025 Transit passes 269 301 343 449 Bike Love (>12 rides/month) 15 17 19 16 Lyft 4 3 2 2 Total 288 320 364 467 Figures 8 and 9 show the average cost per month and the annual cost for PATMA to mode shift workers out of single-occupancy vehicles and into a sustainable transportation commute. Figure 8: Cost per User in 2025 Cost per User Monthly Average in Q1 2025 Monthly Average in Q2 2025 Monthly Average in Q3 2025 Monthly Average in Q4 2025 Annual Total Transit pass subsidy $19.06 $23.82 $47.65 $41.56 $395.53 Bike Love (users with 1 or more trips/month) $51.22 $71.36 $55.37 $52.16 $644.02 Lyft $54.81 $75.06 $72.10 $134.25 $909.05 Average cost/user $41.70 $56.75 $58.37 $75.99 $649.53 The cost per user rising in 2025 is attributable to the end of the VTA Smartpass pilot in August at which point PATMA started buying full-cost VTA passes again. 12 Figure 9 shows the number of parking spaces freed up around town as a result of PATMA’s work. Figure 9: Parking Spaces Not Needed Parking Spaces Not Needed Q1 2025 Q2 2025 Q3 2025 Q4 2025 Average Transit passes 269 301 343 449 341 Bike Love (> or = 12 trips/month) 15 17 19 16 16 Lyft 4 3 2 2 3 Total 288 320 364 467 360 Figure 10 shows the number of avoided vehicle miles traveled as a result of PATMA’s programs. Figure 10: Avoided Vehicle Miles Traveled in 2025 Program Q1 2025 Q2 2025 Q3 2025 Q4 2025 Total Transit pass subsidy 487,895 772,122 755,149 901,552 2,916,717 Lyft 214 175 147 238 774 Bike Love 3,013 4,381 4,357 3,796 15,547 Total 491,122 776,677 759,653 905,586 2,933,038 Adding up the four quarters, PATMA programs reduced vehicle miles traveled by 2,933,038. And finally, Figure 11 shows greenhouse gas emissions reduced as a result of these programs. Figure 11: Greenhouse Gases Reduced (tons) Program Q1 2025 Q2 2025 Q3 2025 Q4 2025 Total Transit passes, Lyft, and Bike Love 193 305 298 355 1,152 In 2025, PATMA’s work resulted in a reduction of greenhouse gas emissions of 1,152 tons, up from 603 tons in 2024. Testimonials Beyond the quantitative effect, PATMA also has a qualitative positive impact on workers in Palo Alto. The following feedback from employees of local businesses shows how much PATMA’s programs mean to the community. Here are some testimonials received from retail, accommodations, and personal services establishments. • "I love the new electric trains. The Express is 25-30 minutes between Palo Alto and San Francisco 4th and King. In terms of safety, all the signage is easy to read, the trains are clean and disabled-friendly. I like that Caltrain takes care of all members of the community who have an array of needs." 13 • “I am a business owner and my staff loves the train passes, and I love knowing they can get here safely and not take up customer parking spaces or have to move their cars around during the day. Thanks!!!!” • “This program helps me in many ways. I am able to come to work stress free, I get some steps in for my health, and it is helping me financially. I love this program. Getting up to take the train helps me mentally too because it gets me out in the beautiful weather.” • “I’ve been using the Palo Alto TMA service, so I am really enjoying my bus ride to Union City.” • “I bike to Caltrain from my house to 4th & Townsend and catch Caltrain. Huge fan of the new electric trains. They are much faster, more comfortable, quieter, brighter and definitely more reliable. As someone in the retail sector, the GoPass program has been a huge boon to me.” • “Thanks to this program I am driving less and becoming better with time management.” • “Agradezco al programa por facilitarme la movilidad hacia mi trabajo. (I am grateful to the program for facilitating my commute to work.)” Finances When PATMA was a burgeoning non-profit, it grew and demonstrated results which helped make the case for increasing its City funding allocation. Then in 2020, the pandemic altered commuting habits and parking fund revenues fell dramatically. PATMA has been expanding its positive impact since then. Figure 12 shows the history of PATMA’s funding allotments since FY 2016. Figure 12: PATMA Funding Since Inception PATMA continually strives to be a good steward of taxpayer dollars and use funding efficiently to maximize benefits. 14 Grant Funding In 2025, PATMA concluded grant work for two organizations that provided funding for pilot programs. • VTA Transit Oriented Communities - $24,550 for outreach and marketing along El Camino Real to encourage mode shift to VTA buses • City of Palo Alto Utilities - $10,000 grant for e-bike and e-scooter pilot These grants complemented City of Palo Alto funding. Even though both projects happened in 2024 and 2025, funding for these pilot programs was received in 2024. Revenues and Expenses Figure 13 provides specific information about income sources and expenses by month. Figure 13: PATMA Revenues and Expenses in 2025 Figures 14 and 15 show relative income sources and expenditures. Note that the fair market value of Caltrain GoPasses ($1,545,984) and VTA Smartpasses ($68,040) in 2025 that PATMA 15 received for free or at a discounted price respectively are not included in Figure 14’s Overview of 2025 Revenues. Figure 14: Overview of 2025 Revenues In terms of expenses listed in Figure 15, administration labor (ex.: bookkeeping, taxes, board meetings, reporting) was 10%, well below the 30% limit required in the contract between the City and PATMA. Other major program expenses included transit passes, refurbished bikes, Bike Love rewards, Lyft after hours, the annual commute survey, the e-bike and e-scooter pilot, and business expenses (ex.: mailbox rental, software, office supplies). Figure 15: Overview of 2025 Expenses Memberships $3,000 City of Palo Alto $400,000 Memberships City of Palo Alto 16 Conclusion With the City of Palo Alto’s support, in 2025, PATMA dramatically increased the number of workers who left their cars at home and took the train, bus, bike, or electric scooter to work. The number of transit passes distributed grew from 249 in January to 468 in December. Added to this number are the workers who received a refurbished bike for commuting, received Bike Love rewards, took after hours Lyft rides home after transit stopped running, or participated in the e-bike and e-scooter pilot. When added together, 482 workers commuted by sustainable transportation mode and freed up that number of parking spaces in the commercial areas of Palo Alto. Greenhouse gas reductions nearly doubled from 603 tons in 2024 to 1,152 tons in 2025. A number of collaborators were instrumental to these successes. Thanks to our colleagues at Caltrain and VTA, additional free Caltrain GoPasses and highly discounted VTA Smartpasses helped bring down PATMA’s cost/user. Grant providers supported PATMA with specific aspects of our mode shift work along El Camino Real and for the active mobility pilot. Local and regional non-profits such as Bike Exchange, Silicon Valley Bicycle Coalition, Seamless Bay Area , and Palo Alto Forward either provided services, volunteers, or introduced PATMA to potential funders to grow our work. Managers at local businesses and non-profits encouraged their employees to apply for PATMA’s programs. In addition, PATMA’s Board members provided valuable advice. All together, these collaborations helped position PATMA to have an even larger impact reducing traffic, demand for parking, and greenhouse gas emissions while supporting a vibrant retail community in 2026. Three-Year Strategic Plan July 1, 2026 – June 30, 2029 Submitted to the Palo Alto City Council Prepared by: Palo Alto Transportation Management Association 855 El Camino Real #13A-200, Palo Alto, CA 94301 www.paloaltotma.org March 2026 Table of Contents Executive Summary ....................................................................................................................................... 1 Introduction .................................................................................................................................................. 2 Context .......................................................................................................................................................... 2 PATMA Programs .......................................................................................................................................... 5 Accomplishments .......................................................................................................................................... 6 Three-Year Strategic Planning ....................................................................................................................... 6 Workplan ..................................................................................................................................................... 11 Budget ......................................................................................................................................................... 12 Conclusion ................................................................................................................................................... 14 1 PATMA’s Three Year Strategic Plan July 1, 2026 – June 30, 2029 Executive Summary Each year, the Palo Alto Transportation Management Association (PATMA) conducts a Three-Year Strategic Plan with input from its Board of Directors. This plan provides a roadmap of goals, strategies, tactics, and objectives that ensure the non -profit will be able to help an increasing number of workers shift from driving single-occupancy vehicles to sustainable transportation modes. PATMA’s work supports local businesses with transportation demand management programs that help companies attract and retain workers: free transit passes, refurbished bicycles, $5/day rewards for active mobility commutes, and after-hours Lyft rides of less than five miles. For the past five years, PATMA has been rebuilding from a pandemic-induced 90% drop in transit pass requests in early 2020 and in 2025 far exceeded pre-pandemic numbers. For the 12-month period ending December 31, 2025, PATMA programs resulted in a reduction in demand for 482 parking spaces around town, 2,933,038 fewer vehicle miles traveled1, and 1,152 fewer tons of greenhouse gas emissions. Collaboration with our partners where our goals are aligned has been key to our progress as has the City of Palo Alto’s generous $400,000 budget allocation which has allowed PATMA’s programs to nearly double itsimpact in the past year. Building on these successes, this Strategic Plan provides details about how we will reach the following goals in the next three years. • Year 1: Grow PATMA’s impact by focusing mode shift efforts on workers for whom it would be easiest and most beneficial to switch from driving to train, bus, or bike • Year 2: Double PATMA’s positive impact from 2025 numbers: transit passes distributed, parking spaces freed up, and greenhouse gas emissions reduced • Year 3: Further grow PATMA’s positive impact to reduce traffic congestion, demand for parking, and greenhouse gas emissions. We have identified targets for additional mode shift: Palo Alto workers who live in San Jose, Fremont, Redwood City, East Palo Alto, and Mountain View who could take one train, one bus, bike or scooter to work. PATMA is poised to grow our impact further and needs to identify additional funds beyond the $400,000 budget to pay for additional bus passes, refurbished bicycles, Bike Love rewards, and additional labor for marketing and program administration. This is a good problem to have: knowing how we want to grow and being able to describe the path and resources needed to reach our goals for the next three years. 1 To calculate the total vehicle miles traveled reduction: distance in miles not travelled from home zip code to work zip code roundtrip, multiplied by the number of weekdays in a month, added up over 12 months. 2 Introduction The Palo Alto Transportation Management Association (PATMA) is a non-profit leading efforts to reshape commute behaviors around town. Abundant mass transit, active mobility (bicycle, electric scooter, walking), on-demand ride hailing options, as well as trip planning and real time arrival apps are available to enable many workers who live and work near major transit pipelines (Caltrain, VTA 22/522, SamTrans ECR, and the Dumbarton Express) to commute quickly and efficiently without needing to own a personal vehicle. In this context, PATMA provides information and incentives that encourage workers to shift out of their single -occupancy vehicles (SOVs) and into low-carbon transportation options. There is potential for PATMA to free up more parking spaces and reduce more greenhouse gas emissions. The following Three-Year Strategic Plan, which is compiled each year for the next three years, lays out goals, strategies, tactics, and objectives for PATMA’s work supporting Palo Alto businesses and workers. Background Context Several contextual elements inform this strategic plan, including: the City of Palo Alto’s ambitious greenhouse gas emission reduction goals, the fact that on-road transportation contributes more than half of Palo Alto’s greenhouse gases emissions, the goals the Palo Alto City Council sets each January, PATMA’s contract with the City of Palo Alto, PATMA’s bylaws, and PATMA’s mission and values. The following gives an overview of each element. Sustainability Climate Action Plan (S/CAP) The City of Palo Alto set a goal to reduce greenhouse gas emissions 80% below 1990 levels by 2030 and to become carbon neutral by 2030. One S/CAP mobility goal relevant to PATMA regarding reducing greenhouse gas emissions is “increasing the mode share for active transportation (walking, biking) and transit from 19% to 40% of local work trips by 2030.” According to PATMA’s 2025 commute survey findings, three of four sectors in Palo Alto already exceed the 40% metric: service, light office, and technology: • Service – 49.3% • Light office – 60.0% • Tech – 47.5% • Government – 33.3% Currently, the government sector is the only one that is not meeting that goal. This year, PATMA will begin offering programs to City of Palo Alto hourly workers who do not receive benefits, which will help mode shift more government workers. PATMA will continue working with the service sector - in retail, food service, accommodation, and healthcare – which has a high sustainable commute rate already but also high turnover. PATMA will also continue to market programs to serve more workers in the light office sector. Finally, PATMA supports mode shift efforts at large tech companies and the City of Palo Alto by sharing annual 3 commute survey findings, and in the case of tech companies, tabling at commuter fairs when requested. All of these efforts contribute results towards the City’s S/CAP goals. City Council Goals Each year, the Palo Alto City Council sets their goals for the year. In January 2026, those goals included: 1. Government efficiency 2. Housing production 3. Economic development 4. Renovation of Cubberley Community Center PATMA’s programs help address two of these: economic development and government efficiency. PATMA helps local businesses to attract and retain employees by providing low wage workers with commute counseling, access to free transit passes, rewards for bicycling to work, and late -night ride hailing services. These programs contribute to retail vibrancy and economic development. When PATMA begins providing mode shift programs to hourly City government workers this year, the City will be outsourcing mode shift work to a contractor instead of hiring new staff within. This is an example of government efficiency that will save the City money while expanding support for City workers. PATMA’s Contract with the City of Palo Alto The contract between the City of Palo Alto and PATMA provides guidance about how public funds should be used to ensure the public good as well as planning, reporting, and surveying requirements. • Use of City funds – “PATMA shall use the City Funds for “pilot projects” intended to reduce single occupancy vehicle trips by Downtown and California Avenue Business District workers, as mutually agreed upon by the City Manager and PATMA. For FY24 and FY25, $200,000 of City Funds may be used to reduce single occupancy vehicle trips anywhere in Palo Alto. Pilot projects may include purchase and distribution of transit passes, active commute rewards, support for carpooling, and other measures to address first mile and last mile connections. If PATMA uses City Funds to purchase transit passes to give away free-of-charge, the free transit passes shall be provided solely to low income workers.” • Planning – “PATMA shall: (a) conduct an annual strategic planning session producing 3-year goals and objectives and funding requirements, and prepare an annual budget with projected metrics (cost per mode shift, ROI, etc.), and (b) annually provide to the City a detailed, updated strategic plan and budget. The strategic plan may utilize scenarios to illustrate the return on investment associated with different funding levels. The strategic plan shall identify the projects proposed to be funded with the City Funds for the City Manager’s review and approval.” • Reporting – “PATMA shall provide the City with quarterly written reports on the implementation and effectiveness of pilot programs funded by the City, including 4 quantitative measures of SOV trip reduction and mode shift achieved, metrics used, cost per employee mode shift, and how the City Funds were expended. PATMA shall submit the reports at the same time that PATMA submits the quarterly invoice to the City.” • Surveying – “PATMA shall conduct a robust survey of Downtown and California Avenue Business District employee commute patterns on an annual basis. Additional areas of Palo Alto where the TMA has been active may be included in the survey.” PATMA’s Bylaws PATMA’s bylaws provide operating instructions for the non-profit. One way it does this is by ensuring PATMA’s board members represent a range of interests among the Palo Alto community as well as the number of board members PATMA should have. • Qualifications of Directors. “The Board shall in good faith strive to include as Directors, representatives from major stakeholder groups serving PATMA’s current or planned/proposed service areas, including representatives of the following industries: technology, real estate development, retail and/or hospitality, philanthropy, and traditional office (e.g., finance, accounting, legal) and including representatives representing residential interests.” • Number of Directors. “The authorized number of Directors shall consist of at least five but no more than thirteen Directors.” Mission and Core Values In 2024, PATMA rewrote its mission and values to be more concise and memorable. Mission Better commutes for everyone Core values • Traffic – lighten traffic congestion • Parking – reduce demand for parking in commercial areas • Climate change – transition to a zero-emission transportation system • Equity – fair outcomes, treatment and opportunities for all • Local businesses – help local businesses attract and retain employees • Health – encourage community health These reflect the Palo Alto City Council’s stated values and priorities and reinforce City policies. Higher Income Threshold In January 2025, PATMA’s board decided to raise the threshold to 80% of Area Median Income in Santa Clara County which in April 2025 was raised to $111,700/year for a household of one. Altogether, this context provides guidance to PATMA about how to structure our programs to best serve the public’s interest. 5 PATMA Programs Programs With a $111,700/year Income Threshold Transit Passes Currently, PATMA focuses on supporting essential workers in the commercial districts of Downtown and California Ave, at the Stanford Mall, along El Camino Real, at Midtown, and along San Antonio Rd. If any of these workers2 are driving to work and make less than $111,700/year, they may receive free Caltrain, VTA, SamTrans, or Dumbarton Transbay bus passes. Refurbished Bicycles In 2022, PATMA piloted a refurbished bicycle program with the local non-profit Bike Exchange. This refurbished bicycle program is for essential workers in Palo Alto making less than PATMA’s income threshold who would like to bike to work but do not own a bicycle. If they also need any safety equipment – helmet, lock, lights – Bike Exchange provides these to each essential worker receiving a refurbished bike. E-bike E-scooter Pilot With funding from the City of Palo Alto Utilities, this pilot studied two mode shift scenarios: active commutes via e-bike and first/last mile solutions via e-scooter. Five pilot participants making less than $70,000/year received either an e-bike and safety equipment, or a 12-month e-scooter lease. The intent was to study how many times a week they used the e-bike or e-scooter, how many device miles they traveled, and understand supports and barriers to device use. Lessons learned from this pilot can be found in PATMA’s 2025 Annual Report. After hours Lyft rides Workers who live less than five miles from work and who need to travel home from work late at night after mass transit stops can receive a $10 Lyft credit per ride. Program Without an Income Threshold Bike Love PATMA’s Bike Love app provides $5/day up to $599/year to workers in Palo Alto’s commercial districts to encourage commuters to leave their cars at home and bike or e-scooter to work. Unlike the transit pass program, there are no income restrictions for the Bike Love program. The app was designed to provide attractive financial rewards to build active mobility 2 With the exception of workers at businesses subject to a Transportation Demand Management (TDM) plan in which case those businesses are to provide their workers with TDM mode shift programs. Figure 1: Geofenced Areas for Bike Love Rewards 6 habits. See Figure 1 for a map of Bike Love program boundaries within which workers earn rewards. The Bike Love app also rewards travel to all 30 Caltrain stations for commuters who would be incentivized to bike or scooter to Caltrain and take the train to work. In 2025, 49% of the total number of transactions and 27% of the transaction values of redeemed rewards happened at Palo Alto-based businesses. This is another way that PATMA supports local businesses and multiplies program impact to benefit the local economy. Accomplishments PATMA’s sustainable transportation programs in 2025 resulted in a reduction in demand for 482 parking spaces around town, 2,933,038 fewer vehicle miles traveled, and 1,152 fewer tons of greenhouse gas emissions. The majority of these results were due to the transit pass program. See Figure 2 for the number of transit passes activated over the past five years. Figure 2: Transit Passes Activated 2019-20253 Three-Year Strategic Planning With the background context listed above, in December 2025, PATMA staff and board members met to discuss strategic planning for the next three years. Input gathered informed PATMA’s path 3 Note the reductions in the number of transit passes activated in January 2024 and January 2025. Caltrain GoPasses are good through the end of the year. PATMA asks pass holders to renew each December for the next year. Given the high turnover in the service sector, many do not renew for the next year as they may have switched to a job in a different city. 7 forward with goals (overall targets to achieve), strategies (plan of action), tactics (specific actions), and objectives (measurable outcomes) for FY2027-FY2029. Commute Survey Recent findings from the 920 workers who completed PATMA’s 2025 Commute Survey identified opportunities for more sustainable transportation mode shift. • Service and government sectors: 50.7% of service sector workers and 66.7% of government workers drive alone to work • Open to mode shift: 67.8% of workers surveyed who drive alone to work say they are open to switching to a sustainable commute • Near transit: 19% live less than one mile from a train or bus that runs from their home city to Palo Alto. Among survey respondents, 72% live in cities served by a train or bus that runs to Palo Alto. • Bike, electric scooter, or walk: 24% live less than five miles from work and are open to an active commute • Top 10 home cities among drive alone commuters who are willing to mode shift include: San Jose, Palo Alto, Redwood City, Sunnyvale, Mountain View, San Francisco, Santa Clara, San Mateo, Fremont, and East Palo Alto. • Bike racks: 200 survey respondents would like more bike parking outside of their work Figure 3 shows the home zip codes of survey respondents and their proximity to transit options. Green pins represent zip codes where one or more survey respondents live. Red circles show Caltrain stations and yellow circles represent BART stations. Figure 3: Survey Respondents’ Proximity to Transit 8 These insights as well as the following local and regional context, contribute to Year 1, Year 2, and Year 3 goals, strategies, tactics, and objectives. Year 1 (Jul 2026-Jun 2027) Local and Regional Context • The portion of Palo Alto’s greenhouse gas emissions from on-road transportation rose from 51.7% in 2022 to 56.8% in 2024. • The City of Palo Alto continues to enable Vision Zero and active mobility infrastructure that encourage more active commuting. • In spring 2026, live information will be available outside Downtown City garages about the number of parking spaces available inside to help drivers more easily find available parking. • Commercial and residential development efforts in Palo Alto will accelerate as the Planning Department processes proposed development applications to help meet the City’s Housing Element. • Caltrain continued its PassForward program for 2026, providing free Caltrain passes for PATMA to distribute to low wage workers. • Signatures are being gathered for a November 2026 ballot measure on mass transit funding. PATMA Goals • Grow PATMA’s impact by focusing mode shift efforts on workers for whom it would be easiest and most beneficial to switch from driving to train, bus or bike • Scale up the number of transit passes distributed and activated • Scale up the number of workers commuting by active mobility • Support S/CAP goals to reduce greenhouse gas emissions • Support local businesses to attract and retain workers PATMA Strategies • Develop or deepen relationships with managers at service sector and light office businesses • Develop or deepen relationships with community-based organizations that work on transportation, housing, climate and/or economic issues (Seamless Bay Area, Silicon Valley Bike Exchange, Silicon Valley Bicycle Coalition, Palo Alto Chamber of Commerce, Palo Alto Forward, Alta Housing, Avenidas) • Leverage expertise, connections, and resources with other local and regional organizations to increase program impacts: o Transit agencies (Caltrain, VTA, SamTrans, AC Transit) o Other nearby cities where large numbers of Palo Alto workers live (Redwood City, East Palo Alto, Mountain View, Fremont, and San Jose) o Metropolitan Transportation Commission 9 o City of Palo Alto (Utilities, Office of Transportation) o Local businesses o PATMA board members PATMA Tactics • Explore resurrecting a Scoop carpool matching program • Explore developing a vanpool matching program for low wage workers that super commute from the Central Valley or near Sacramento • Explore “transit-friendly work schedules” with local business managers • Market PATMA programs to hourly City of Palo Alto workers • Market PATMA programs to assisted living workers • Conduct spring active mobility marketing • Conduct summer program marketing • Promote “Refer a Co-worker” program outreach - workers receive a free $5 coffeehouse gift card if the coworker they refer receives a transit pass • PATMA board members reach out to their network to each let five managers at local businesses know about PATMA’s programs • Find transportation officials at five cities to let them know about PATMA’s programs -- Redwood City, East Palo Alto, Mountain View, San Jose, and Fremont -- and ask about communication channels that could help reach people who live in their city and work in Palo Alto • Conduct fall commute survey which also serves as a program marketing opportunity • Help City of Palo Alto parking program collect information from local business managers to inform parking policy changes PATMA Objectives • # freed up parking spaces • # workers using transit passes • # workers commuting by active mobility • # vehicle miles traveled reduced • # tons greenhouse gas emissions reduced • # commute survey respondents Year 2 (Jul 2027-Jun 2028) Local and Regional Context • In Year 2, results will be known from the Nov 2026 regional transit funding ballot measure which will provide critical funding for mass transit and yield service improvements • Possible upcoming changes in City of Palo Alto parking policies 10 • Follow-up from 2025 Urban Land Institute planning study for the Downtown Transit Center. An example is that Santa Clara Valley Transportation Authority is working to activate Palo Alto’s Downtown Transit Center with better lighting and a café • Possible availability of BayPasses for low wage Palo Alto workers PATMA Goals • Double PATMA’s positive impact from 2025 numbers: number of transit passes distributed, number of parking spaces freed up, and greenhouse gas emissions reduced • Identify and secure additional outside funding sources to purchase additional transit passes, bicycles, and bicycling rewards. PATMA Strategies • Negotiate BayPasses for low wage Palo Alto workers • Develop or deepen relationships with managers at service sector and light office businesses • Develop or deepen relationships with community-based organizations that work on transportation, housing, climate and/or economic issues • Be open to new opportunities to leverage expertise, connections, and resources with other local and regional organizations to increase program impacts: o Transit agencies (Caltrain, VTA, SamTrans, AC Transit) o Other regional cities where large numbers of Palo Alto workers live o Metropolitan Transportation Commission o City of Palo Alto (Utilities, Office of Transportation) o Other cities in the region o Local businesses o PATMA board members PATMA Tactics • Three seasonal marketing campaigns PATMA Objectives • # freed up parking spaces • # workers using transit passes • # workers commuting by active mobility • # vehicle miles traveled reduced • # tons greenhouse gas emissions reduced • # commute survey respondents Year 3 (Jul 2028-Jun 2029) Local and Regional Context 11 • Assuming the 2026 Bay Area ballot initiative passed providing more funding for transit agencies which allows them to increase service frequency • Mobility Hubs may be available around town • New parking policies may be in place • New sustainable transportation planning and payment apps may be available Goals • Further grow PATMA’s positive impact to reduce traffic congestion, demand for parking, and greenhouse gas emissions while supporting local businesses and workers. Strategies • Track developments in sustainable transportation planning and payment apps • Develop or deepen relationships with managers at service sector and light office businesses • Develop or deepen relationships with community-based organizations that work on transportation, housing, climate and/or economic issues • Be open to new opportunities to leverage expertise, connections, and resources with other local and regional organizations to increase program impacts: o Transit agencies (Caltrain, VTA, SamTrans, AC Transit) o Other regional cities where large numbers of Palo Alto workers live o Metropolitan Transportation Commission o City of Palo Alto (Utilities, Office of Transportation) o Other cities in the region o Local businesses o PATMA board members • Expand PATMA’s toolkit of information and incentives to encourage mode shift • Help expand clean transportation options available to workers in Palo Alto Tactics • Develop new case studies of workers who commute by transit or active mobility and promote • Test new technology sustainable transportation planning and payment options as they become available • Promote Mobility Hubs that are available Objectives • # freed up parking spaces • # workers using transit passes • # workers commuting by active mobility • # vehicle miles traveled reduced 12 • # tons greenhouse gas emissions reduced • # commute survey respondents Workplan Year 1 The flow of work over the course of FY2027 is shown in Figure 3. Figure 3: Year 1 Workplan Jul ‘26 Aug ‘26 Sep ‘26 Oct ‘26 Nov ‘26 Dec ‘26 Jan ‘27 Feb ‘27 Mar ‘27 Apr ‘27 May ‘27 Jun ‘27 Events X X X Market Transit Passes X X X X X X Commute Survey X X X Apply for Grant Funding X X X Deliver Commute Survey, Annual Report, and Strategic Plan reports X Market Active Mobility Programs X X X X X Budget Looking back at funding levels since PATMA’s inception in 2016, PATMA grew over several years and demonstrated cost-effective successes freeing up parking spaces, reducing greenhouse gas emissions, and reducing vehicle miles traveled until the pandemic. Figure 4 shows historic budget trends. Figure 4: PATMA Funding Since Inception 13 The PATMA baseline budget is $400,000. This level allows PATMA to continue with two part-time staff and pull in additional contractors on an ad hoc basis to support seasonal activities such as active mobility marketing in the spring and commute survey distribution in the fall. A status quo budget for FY2027 will allow PATMA to: • Perform marketing and outreach to target sectors • Develop or deepen relationships with business managers who are the gatekeepers to workers who could use PATMA’s programs and services • Conduct the annual commute survey • Maintain the number of parking spaces freed up, tons of greenhouse gas emissions reduced, and ease traffic congestion In 2025, the cost/user/year, or cost to free up a parking space, was $650 while in 2024 the cost/user/year was $672. This includes the cost to purchase transit passes, Lyft rides, and $5/day Bike Love rewards. Figure 5 provides three budget scenarios for PATMA’s projected expenses in FY2027. The $400,000 scenario represents a continuation of the restored budget PATMA realized in FY2026. The $375,000 budget would shrink the program to 400 parking spaces freed up. A smaller $350,000 budget would mean the number of parking spaces freed up would shrink further. Figure 5: Three Budget Scenarios for FY2027 Program Elements Expenses - $400,000 budget Expenses - $375,000 budget Expenses - $350,000 budget Transit Passes $262,504 $242,504 $217,504 Bike Love Rewards $45,242 $45,242 $45,242 Commute Survey $30,000 $25,000 $25,000 Refurbished Bicycles $5,200 $5,200 $5,200 Lyft Afterhours Rides Home $4,573 $4,573 $4,573 PATMA Administration $35,144 $35,144 $35,144 Business Expenses $17,337 $17,337 $17,337 Total $400,000 $375,000 $350,000 In the $375,000 budget scenario, PATMA would cut staff program hours, reduce marketing on transit passes and let the number of transit passes distributed fall, and collect fewer commute survey responses. In the $350,000 budget scenario, PATMA would cut back further on staff hours, reduce marketing efforts, purchase fewer transit passes, and collect a smaller number of commute survey responses. As circumstances change, PATMA has the ability to adjust income and expenses through various financial levers: reducing labor costs, reducing program expenses, requesting additional GoPasses from Caltrain and large employers in the area, and increasing grant writing and philanthropic fundraising. PATMA will continue to operate in a lean, efficient manner and use our budget effectively to maximize impact. 14 Conclusion Many public and private organizations in the Bay Area are working hard to facilitate a future seamless, integrated low-carbon transportation system that will lower personal transportation costs and reduce GHG emissions. PATMA will continue to monitor developments in these areas and adjust our programs accordingly to best serve Palo Alto businesses. In support of the local economy, over the next three years PATMA will look for opportunities to help more workers shift to a sustainable commute as we raise awareness about the benefits of transit and active mobility commutes, offer information about sustainable transportation options, and provide programs and incentives for mode shift. The Palo Alto TMA runs efficiently with two part-time staff members and the guidance of a dedicated Board. We are proud of our positive impact as we implement programs that support the City Council’s goals and the City’s policies. PATMA has ambitious plans to do more although growing our positive impact will require more resources. This is the main challenge we face in the next few years. We will continue to look for additional outside funding that will help us buy more bus passes, refurbished bicycles, and provide Bike Love rewards. 2025 COMMUTE SURVEY REPORT for and PATMA Board Members Cedric de la Beaujardiere, resident (Chair) Rob George, Philz Coffee (Treasurer) Shannon McEntee, resident (Secretary) Ria Lo, City of Palo Alto Sebastian Mafla, Sheraton Alejandra Mier, Coupa Cafe Steven Lee, resident December 2025 Prepared by: Justine Burt Lucey Gorrill ALTRANS TMA Inc 302 Toyon Ave, F-410 San Jose, CA 95127 www.altrans.net Table of Contents Executive Summary .................................................................................................................................... 1 Introduction ............................................................................................................................................... 3 Survey Population ...................................................................................................................................... 3 Survey Methodology .................................................................................................................................. 6 Results ........................................................................................................................................................ 6 Key Insights .............................................................................................................................................. 16 Conclusion ................................................................................................................................................ 18 1 2025 Commute Survey Report Executive Summary In September and October 2025, the Palo Alto Transportation Management Association (PATMA) team surveyed workers in commercial areas of Palo Alto to learn about their commute habits and preferences. The team conducted on-line and in-person surveys in English, Spanish, Mandarin, and Vietnamese beginning with emailing and texting then following up with door-to-door canvassing. This document provides highlights from the survey findings. The three main objectives of the commute survey were to 1) learn how workers commute, 2) determine which workers are open to shifting their commute from single-occupancy vehicles to mass transit or active mobility options, and 3) raise awareness of PATMA’s programs. Based on the 920 completed surveys, Figure 1 shows the percentage of respondents from the four main sectors into which PATMA classifies workers: technology, service, light office, and government. Figure 1: Survey Respondents by Sector Technology 27% Service 44% Light Office 5% Government 24% Technology Service Light Office Government 2 2025 Commute Survey Report Figure 2 below provides the primary mode workers use to commute each week. The survey found that overall, 54.8% of workers surveyed used a single-occupancy vehicle (SOV) as their primary commute mode in 2025, down from 62% in 2024. Figure 2: Primary Commute Mode of Survey Respondents By separating out commute mode by work sector, Figure 3 illustrates sector s with higher and lower drive alone rates. Figure 3: Commute Mode by Work Sector 54.8% 33.8% 5.2%4.0%1.6%0.5% 0 100 200 300 400 500 600 Drive alone Transit Carpool Bike Telecommute Walk Nu m b e r o f P a r t i c i p a n t s 50 . 7 % 36 . 3 % 5. 8 % 4. 2 % 2. 3 % 0. 5 % 0. 2 % 40 . 0 % 50 . 0 % 6. 7 % 3. 3 % 0. 0 % 0. 0 % 0. 0 % 52 . 5 % 38 . 8 % 3. 7 % 2. 9 % 1. 2 % 0. 4 % 0. 4 % 66 . 7 % 20 . 1 % 6. 8 % 5. 0 % 0. 9 % 0. 5 % 0. 0 % 0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0% 80.0% Drive alone Transit Carpool Bike Walk Telecommute Other Service Light Office Technology Government 3 2025 Commute Survey Report With respect to PATMA’s mission, data collected in the 2025 commute survey illuminates opportunities to reach more workers in order to help reduce traffic congestion, reduce demand for parking, support small businesses, lower greenhouse gas emissions, and address social equity issues. Introduction In 2025, the Palo Alto Transportation Management Association (PATMA) conducted its tenth annual employee commute survey as required by the funding agreement between PATMA and the City of Palo Alto (COPA). PATMA contracted with ALTRANS TMA Inc. to conduct the survey and performed outreach in September and October 2025. The survey was designed to identify how Palo Alto employees working in the commercial areas of Palo Alto - University Avenue (Downtown), California Avenue (Cal Ave), El Camino Real, the Stanford Mall, the Charleston Middlefield shopping center, and along San Antonio Road - commute to work, identify individuals currently driving alone who are open to shifting to a sustainable commute mode, and raise awareness of PATMA’s program offerings. Survey Population According to the most recent U.S. Census data, the total worker population in Palo Alto was 109,011 in 2022. The darker shaded areas of Figure 4 show where work centers are clustered around Downtown, along El Camino Real, and near San Antonio close to Highway 101. Figure 4: Density of Workers in Palo Alto Source: U.S. Census OnTheMap, 2022 4 2025 Commute Survey Report The U.S. Census organizes sectors using the North American Industrial Classification System (NAICS) categories. Figure 5 shows the number of workers by NAICS codes. Figure 5: Palo Alto Workers by Sector NAICS Sector Number of Employees Percentage Agriculture, Forestry, Fishing, and Hunting 5 0.0% Mining, Quarrying, Oil and Gas Extraction 1 0.0% Utilities 282 0.3% Construction 881 0.8% Manufacturing 5,152 4.7% Wholesale Trade 971 0.9% Retail Trade 3,991 3.7% Transportation and Warehousing 2,217 2.0% Information 18,860 17.3% Finance and Insurance 4,283 3.9% Real Estate and Rental and Leasing 1,389 1.3% Professional, Scientific, and Information 23,575 21.6% Management of Companies and Enterprises 3,049 2.8% Administration & Support, Waste Management and Remediation 1,915 1.8% Educational Services 3,420 3.1% Healthcare and Social Assistance 30,187 27.7% Arts, Entertainment, and Recreation 831 0.8% Accommodation and Food Services 4,931 4.5% Other Services (excluding Public Administration) 2,315 2.1% Public Administration 756 0.7% Source: U.S. Census OnTheMap, 2022 PATMA organizes NAICS sectors into four employer categories – service, light office, technology, and government – and offers programs to workers in all but the technology sector. Figure 6 shows which NAICS code sectors PATMA includes in the service, light office, technology, and government categories. Figure 6: NAICS Codes and PATMA Classification NAICS Code NAICS Sector Name PATMA Classification 11 21 22 23 31-33 42 44-45 48-49 Agriculture, Forestry, Fishing and Hunting Mining, Quarrying, and Oil and Gas Extraction Utilities Construction Manufacturing Wholesale Trade Retail Trade Transportation and Warehousing Service Service Government Service Service Service Service Service 5 2025 Commute Survey Report NAICS Code NAICS Sector Name PATMA Classification 51 52 53 54 55 56 61 62 71 72 81 92 Information Finance and Insurance Real Estate and Rental and Leasing Professional, Scientific, and Technical Services Management of Companies and Enterprises Administrative and Support and Waste Management and Remediation Services Educational Services Health Care and Social Assistance Arts, Entertainment, and Recreation Accommodation and Food Services Other Services (except Public Administration) Public Administration Technology Light Office Light Office Technology Light Office Light Office Light Office Service Light Office Service Service Government Source: NAICS Association After sorting Census data for the number of workers in the four categories for statistical purposes, Figure 7 shows the number of workers in each category and the total worker population in Palo Alto. Figure 7: Number of Workers in Four Sectors PATMA Organization Category Number of Employees % Share Service 50,651 46% Light Office 14,887 14% Technology 42,435 39% Government 1,038 1% Total 109,011 Subtracting the 29,000 worker population at the Stanford Research Park, which has its own transportation demand management programs, leaves us with a worker population of 80,011. After cleaning the survey data of duplicate responses and incomplete surveys, there were a total of 920 complete surveys of which: • 404 respondents were service sector workers (44%) • 50 were light office workers (5%) • 247 were tech workers (27%) • 219 were government staff (24%) This year’s response rate was higher than the four previous years the survey was conducted. The number of respondents for each of the ten survey years is shown in Figure 8. 6 2025 Commute Survey Report Figure 8: Number of PATMA Commute Survey Responses by Year Year Number of Respondents 2025 920 2024 885 2023 738 2022 511 2021 551 2019 1,471 2018 496 2017 892 2016 829 2015 1,173 Compared to 2024, stronger working relationships with managers in the service and technology sectors in 2025 helped boost response numbers. Survey Methodology In September and October 2025, the PATMA team reached out to businesses and organizations to administer the survey. Survey questions asked about the primary travel mode workers use to commute, their home city, employer, income level, and openness to sustainable commute options. The survey was administered through the Fillout.com platform which respondents accessed via personal smartphones through a QR code, PATMA’s electronic tablets, or their computers. Fillout’s survey platform offers skip logic and survey branching to optimize question relevance to different respondents. Paper copies of the surveys in English and Spanish were distributed to managers at downtown hotels who collected responses from their staff. Electronic surveys in Mandarin and Vietnamese were administered at selected businesses. Block-by-block, door- to-door canvassing resulted in a dataset representing businesses and organizations in several commercial areas. Door-to-door outreach was bolstered by mass texting and email follow-up to business contacts. As noted above, the PATMA team secured 920 responses from a citywide worker population of 80,011. With a 95% confidence level and a sample size representing 1.1% of the population, the margin of error for this data is ±3%. Results Data collected in this survey shed light on several topics: • how people commute to work, • where they are coming from, 7 2025 Commute Survey Report • considerations that most influence their decision about how to commute, and • which workers could commute using one main transit or active mobility option. The following figures show results for each question. Q1. In which city and zip code do you live? Among survey respondents this year, the top 10 home cities are shown in Figure 9. Figure 9: Top 10 Cities of Survey Respondents Home City Number Survey Respondents 1 San Jose 180 2 Palo Alto 90 3 Redwood City 74 4 Sunnyvale 65 5 Mountain View 64 6 San Francisco 48 7 Santa Clara 41 8 San Mateo 36 9 Fremont 35 10 East Palo Alto 31 Note that 72% of respondents live in cities served by a train or bus that runs to Palo Alto. Figure 10 maps the home zip codes of survey respondents in San Francisco Bay Area1 counties. 1 The Bay Area refers to the nine counties touching the San Francisco Bay. 8 2025 Commute Survey Report Figure 10: Number of Respondents by Zip Code Some survey respondents live beyond the nine county Bay Area near Sacramento, in the North Bay, and in the Central Valley. Figure 11 shows the average distance of commutes by sector. Figure 11: Average Commute Distance by Sector (miles) 26.1 23.2 19.9 16.9 0.0 5.0 10.0 15.0 20.0 25.0 30.0 Government Technology Light Office Service Number of Miles 9 2025 Commute Survey Report Service sector workers live closer to work in contrast to government workers that on average commute from farther away. Q2. What is the name of your employer? (This information will help us analyze commuting patterns for the four main types of employers [service, technology, light office, and government] in Palo Alto.) Employer names of survey respondents were organized into four main sectors of employers in Palo Alto, as seen in Figure 12. Figure 12: Survey Respondents by Sector Note that the number of respondents from technology companies located in Downtown, Amazon and Salesforce, is 74% higher this year than last. With Return to Office encouragement from management and corporate concern about greenhouse gas emission reductions, both tech employers urged their employees to fill out PATMA’s 2025 survey. Technology 27% Service 44% Light Office 5% Government 24% Technology Service Light Office Government 10 2025 Commute Survey Report Q3. How do you usually travel to work? If you use more than one type of transportation, choose the one used for the longest distance of your trip. Many commuters use more than one type of transportation for commuting. To be able to compare this year’s data with previous years’, we asked people about the main commute mode they used for the longest segment of their trip. Figure 13 provides information about the primary commute mode. Figure 13: Primary Commute Mode Figure 14 divides this data by sector for 2025 to allow comparisons between service, light office, tech, and government sectors. Figure 14: Commute Mode by Sector, 2025 54.8% 33.8% 5.2%4.0%1.6%0.5% 0 100 200 300 400 500 600 Drive alone Transit Carpool Bike Telecommute Walk Nu m b e r o f P a r t i c i p a n t s 50 . 7 % 36 . 3 % 5. 8 % 4. 2 % 2. 3 % 0. 5 % 0. 2 % 40 . 0 % 50 . 0 % 6. 7 % 3. 3 % 0. 0 % 0. 0 % 0. 0 % 52 . 5 % 38 . 8 % 3. 7 % 2. 9 % 1. 2 % 0. 4 % 0. 4 % 66 . 7 % 20 . 1 % 6. 8 % 5. 0 % 0. 9 % 0. 5 % 0. 0 % 0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0% 80.0% Drive alone Transit Carpool Bike Walk Telecommute Other Service Light Office Technology Government 11 2025 Commute Survey Report A comparison of commute modes over the past ten years is shown in Figure 15. Figure 15: Changes in Commute Mode, 2015-2025 Q4 If you drive alone to work, which of the following sustainable commute modes are you open to taking? Note that respondents could choose more than one option, and only respondents who said their main commute mode was by single-occupancy vehicle were given this question. Figure 16: Sustainable Commute Options Drivers Considering 57 % 56 % 53 % 49 % 52 % 60 % 55 % 56 % 62 % 55 % 18 % 18 % 20 % 27 % 25 % 9% 26 % 24 % 24 % 34 % 5%6% 8%9% 5% 2% 5% 7% 6% 5% 15 % 15 % 12 % 9%9% 7% 12 % 10 % 6% 5%5%5% 7% 6%8% 23 % 2% 1%1%2% 2015 2016 2017 2018 2019 2021 2022 2023 2024 2025 Drive Alone Transit Carpool Bike/Walk Telecommute 42.3% 11.8% 4.3% 9.6% 0.6% 0.6% 27.0% 3.9% 0 50 100 150 200 250 Train or bus Carpool Vanpool Bicycle Walk Telecommute None, I prefer to drive Not Applicable Number of Participants 12 2025 Commute Survey Report Note that of 920 survey respondents, 492 drive alone to work and among those, 42% were open to transit, 12% carpool, 4% vanpool, 10% bicycle, <1% walk, <1% telecommute, and 27% prefer to drive. Sorting zip codes of respondents who answered they were open to a sustainable commute and mapping the top 15 yields the graph below. Figure 17: Top 15 Zip Codes with Respondents Driving Alone and Open to a Sustainable Commute Many of these single-occupancy vehicle commuters may be able to commute by Caltrain, Caltrain and VTA, Caltrain and SamTrans, Dumbarton Express Bus, bicycle, e-bicycle, or e- scooter. 13 2025 Commute Survey Report Q5. If you drive alone to work, is your home located less than one mile from a Caltrain station, VTA 22/522 bus stop, SamTrans ECR bus stop, or Dumbarton Express bus stop? Figure 18: Live <1 Mile from Sustainable Transit Option Nearly 15% of respondents who drive alone to work report living close to a transit option that runs directly to Palo Alto. Q6. If you live less than 5 miles from work, are you open to switching to an active mobility mode (bicycle, electric bicycle, scooter, electric scooter, or other personal mobility device) for commuting? Figure 19: Live <5 Miles from Work and Open to Active Commute 258 175 55 8 0 50 100 150 200 250 300 No Yes Not Sure Not Applicable Number of Participants 14.7% 13.5% 0.4% 2.5% 9.1% 53.5% 0 100 200 300 400 500 600 Yes No I already do I already do sometimes I'm thinking about it Not Applicable Number of Participants 14 2025 Commute Survey Report Q7. What is most important to you when choosing how to commute to work? (select up to 3) Figure 20: Most Important Considerations When Choosing How to Commute “Travel time and schedule” predominates the list of factors workers consider when deciding how to commute. Note that survey participants were able to choose up to three answers. Q8. Does your workplace need additional bike racks outside? Figure 21: Need Additional Bike Racks 14.8% 35.5% 69.0% 19.7% 43.9% 14.1% 33.2% 14.3% 9.1% 0 100 200 300 400 500 600 700 Accessibility Cost Travel time or schedule Stress reduction Comfort and safety Ability to make stops to and from Flexibility Environmental impact Amount of things I need to carry Number of Participants 23.5% 69.9% 1.6% 0.2% 0 100 200 300 400 500 600 700 Yes No Not Sure Not Applicable Number of Participants 15 2025 Commute Survey Report Given that 217 out of 920 workers who answered this survey question said they would like additional bike racks, there is an opportunity for follow-up with managers in Palo Alto. Q9. What is your annual salary? Figure 22: Is Your Annual Salary Less Than $100,000 or More? Figure 22 shows that 61% of respondents earn less than $100,000/year which makes them eligible for PATMA’s free transit passes, refurbished bicycles, and after hour Lyft credits. Note that government workers were asked a different question about income and are not included in this graph. Q10. Are there any issues or concerns you would like to share about your commute? The answers to this open-ended question provide PATMA with insights to improve our programs, accomplish more mode shift, or share questions and concerns in the aggregate with our contacts at tech companies and City government. Concerns raised multiple times by respondents are grouped by topic in Figure 23. Under $100,000 61% Over $100,000 39% Under $100,000 Over $100,000 16 2025 Commute Survey Report Figure 23: Respondent Concerns About Their Commute Topic # Comments on Topic Sample Comment Difficulties while driving: traffic, parking, cost of gas and tolls, road surface quality 36 "I am stuck in over an hour of traffic on the way home to San Francisco." Timeliness of transit: late, infrequent service, not reliable 28 "Need more bus frequency between East Palo Alto and Palo Alto downtown." Limited or no transit near home 15 "There is no direct route from San Ramon to my workplace near the Caltrain station." Difficult to get to bus or station 17 "The Caltrain and VTA stops are not within walkable distance from Milpitas." Safety, cleanliness, and comfort of transit and stations 18 "There should be more security and lighting at the Palo Alto train station." Housing affordability near work 2 "I live in San Jose with family since renting alone is a bit much for my budget. Otherwise, I’d rather live closer to work if I could afford it." Bike safety concerns 16 "No bike lanes near my house makes biking from East Palo Alto to Palo Alto a bit dangerous." Parking issues: cost or availability 29 "Parking is the biggest problem. Constantly moving cars across Palo Alto parking lots is time consuming." Pedestrian safety concerns 3 "Drivers looking to avoid traffic along major streets like University Ave will drive at illegally high speeds through the neighborhoods that run parallel to University (like Hawthorne Ave), making it less safe for pedestrians and families that live in these areas." Transporting children 3 "I commute over a bridge with my one year old daughter who attends day care in Palo Alto." Compliments gathered from the survey comments section include: • “I am a business owner and my staff loves the train passes and I love knowing they can get here safely and not take up customer parking spaces or have to move their cars around during the day. Thanks!!!!” • “Thanks for putting VTA back to work!!! When they were on s trike, I had to walk one hour from the Caltrain station to home!” • “I am enjoying the Caltrain pass. And meeting new people on the train going and coming from work.” • “This program helps me in many ways. I am able to come to work stress free, I get some steps in for my health and it is helping me financially. I love this program. Getting up to take the train helps me mentally too because it gets me out in the beautiful weather.” • “I'm very grateful for the Caltrain benefit! Thank you!” 17 2025 Commute Survey Report • “I am very happy with the program.” • “I’ve been using the Palo Alto TMA service so I am really enjoying my bus ride to Union City.” • “I bike to Caltrain from my house to 4th & Townsend, and catch Caltrain. Huge fan of the new electric trains. They are much faster, more comfortable, quieter, brighter and definitely more reliable. As someone in the retail sector, the GoPass program has been a huge boom to me.” • “Thanks to this program I am driving less and becoming better with time management.” • “Commuting to Palo Alto Downtown is made very easy. I have multiple options (Caltrain or SamTrans ECR) and I come and go as I please. It's really fantastic thank you team!” • “Commuting by bike to Salesforce is great - they have lots of bike racks.” • “Please continue with Palo Alto Link.” • “Agradezco al programa por facilitarme la movilidad hacia mi trabajo. (I am grateful to the program for facilitating my commute to work.)” • “Me siento muy agradecido con esta ayuda que nos estan brindando. (I feel very thankful for this help you are providing us.)” In 2025, the City of Palo Alto began the BayPass program for salaried City staff with benefits. Feedback includes: • "I really appreciate having the Caltrain commuter pass. Thank you!" • "I love the BayPass!" • "No concerns, I really enjoy free access to BART and Caltrain for work and pleasure." • "I am very happy in the last year that the City has implemented the Clipper BayPass! I love the unlimited free travel on public transport. It works seamlessly and I am very grateful!" • "I love-love-love the Clipper BayPass! So wonderful." • "Thanks for BayPass" • "I bike from Midtown Palo Alto. It's great!" • "Sometimes the Caltrain is delayed which is challenging when I have early morning meetings but otherwise living close to work and taking the train every day is very convenient." Key Insights The following insights gleaned from data and comments lead PATMA to believe that additional mode shift opportunities exist among workers in Palo Alto. • Overall, the drive alone rate fell from 62% last year to 54.8% this year • Highest drive alone rates are among government employees even though their drive alone rate of 66.7% in 2025 fell from 72% in 2024. • 72% of respondents live in cities served by a train or bus that runs to Palo Alto 18 2025 Commute Survey Report • Service sector workers tend to live closer to work and government workers tend to live farthest away • 136 respondents (14.7%) live less than five miles from work and are open to an active commute • Travel time or schedule is the overarching consideration when deciding how to commute • 217 respondents (23.5%) said they needed more bike parking at work • Barriers to a sustainable commute include perceptions about the timeliness of trains and buses, safety of stations and stops, safety of biking and scootering on roads with cars, and demands outside of work on their time. These data point to the potential for mode shift among workers who live less than five miles from work or who can take one train or bus to work in Palo Alto. Conclusion Given the openness of respondents to sustainable commute modes and the proximity of their home or workplace to transit options, survey results illuminate opportunities to mode shift more workers who commute to Palo Alto by providing information, equipment, and incentives. Some people would benefit from more availability of refurbished bikes, electric bikes, and electric scooters to connect to transit or for commutes of less than five miles. Others would benefit from information about real time train and bus arrivals, Guaranteed Ride Home availability, rapid bus schedules and routes, and safer bicycle routes between home and work.