EAST PALO ALTO
CITY COUNCIL
STAFF REPORT
DATE: May 17, 2022
TO: Honorable Mayor and Members of the City Council
VIA: Patrick Heisinger, Interim City Manager
BY: Elena Lee, Planning Manager
Humza Javed, City Engineer
SUBJECT: TDM Program Administration Contract
Recommendation
It is recommended that the City Council adopt a Resolution authorizing the City Manager to execute a consultant contract for Transportation Demand Management program administration with Cities21, in the amount of $121,300 for a term of three years and one six-month extension.
Alignment with City Council Strategic Plan
This recommendation is primarily aligned with:
Priority No. 2: Enhance Economic Vitality
Priority No. 3: Increase Organizational Effectiveness and Efficiency Priority No. 4: Improve Public Facilities and Infrastructure Priority No. 6: Create a Healthy and Safe Community
Background
In 2017, the City Council identified updating the City’s Transportation Demand Management (TDM) ordinance and creating a comprehensive citywide transportation and mobility plan as key priorities.
In October 2020, development of a TDM Program transitioned from the Public Works Department to the Community and Economic Development Department (CEDD). The Public Works Department continues to lead activities related to the Mobility Study. Where needed, CEDD staff work together with Public Works, especially upon implementation of the ordinance.
At the January 26, 2021 City Council study session, City Council provided guidance on the potential TDM ordinance and accepted staff recommendation that the City pursue establishment of a Transportation Management Association (TMA) in East Palo Alto when revising the TDM ordinance.
On June 1, 20211, the City Council adopted a TDM ordinance2requiring specified projects to have approved TDM plans that incorporate measures to reduce vehicular trips. The new TDM requirement applies as of January 1, 2022 to new residential and nonresidential development, as well as existing nonresidential development with 100 or more employees.
The TDM program was established for the following purposes:
1. To improve mobility in the city, county and surrounding region by reducing up to 40 percent of vehicle trips;
2. To reduce vehicle emissions, energy use and ambient noise levels as a result of fewer vehicle trips, fewer vehicle miles travelled and reduced traffic congestion; and
3. To implement an effective but flexible program that can adapt when warranted by traffic conditions and demonstrated results of the TDM program.
At the meetings on the TDM ordinance, City Council directed staff to issue a Request for Qualifications (RFQ) to identify an organization to serve as the City’s preferred TMA administrator.
On March 11, 2022, City staff issued an RFQ with a goal to contract with an individual or firm that specializes in the administration and management of TDM Programs and assist the City in maximizing the benefits of TDM strategies. The TDM program coordinator is expected to help develop and implement an effective program that meets the specific needs of East Palo Alto, including both the City and the project applicants. The consultant also would assist the City in developing the appropriate fees for Council approval to help support program cost effectively and to refine the program guidelines.
City staff is engaged with the City/County Association of Governments of San Mateo County (C/CAG) which recommends exploring a partnership with Commute.org. Commute.org informed City staff that it does not have capacity and will not be responding to the RFQ.
Consistent with City Council direction, staff is also exploring TMA as another tool to address traffic concerns, including as part of the Ravenswood Business District Specific Plan Update (RBD). Selection as the City’s TDM program coordinator would not preclude the chosen consultant from submitting a proposal for any future TMA efforts. In addition, the selected TDM coordinator would need to meet all standard City contracting requirements.
This staff report seeks City Council approval to authorize the City Manager to execute a consultant contract with the selected consultant to serve as the City’s TDM program coordinator.
1 See June 1, 2021 staff report for information on the TDM ordinance adoption: http://eastpaloalto.iqm2.com/Citizens/Detail_LegiFile.aspx?Frame=&MeetingID=1400&MediaPosition= 6370.072&ID=1737&CssClass=.
2 See chapter 10.32 of the City’s Municipal
Code: https://library.municode.com/ca/east_palo_alto/codes/code_of_ordinances?nodeId=TIT10VETR_CH10.32T RDEMAPR.
Analysis
TDM consultants require both technical knowledge and general program administration skills in order to tailor the program to the needs of the specific jurisdiction and applicants. As of March 30, staff received a total of three bids. The following table summarizes the bid results:
No. Company Name Hourly Rate3
1 ALTRANS Transportation
Management Association, Inc.
• Administrator $113
• TDM Support Staff $75
2 CHS Consulting Group • Administrator $247.50
• Support Staff $126.61
3 Cities21 (Steve Raney) • Administrator (only) $100
Since this iteration of the TDM program is new to EPA, the consultants proposed both a program development startup phase and a program management phase. While all three bidders have extensive experience in TDM program administration in the Bay Area, Cities21 proposal represented the right balance of understanding the needs of the East Palo Alto TDM program and cost. Cities21 is proposing a data-driven, stakeholder focused, transparent and innovative TDM program. The consultant has significant local experience for over 17 years in TDM programs, working with both local municipalities and property owners/tenants. The proposal includes a strong public outreach component, including a robust public engagement and regular updates to the City. Cities21 also has the knowledge to coordinate the City’s TDM ordinance with the new C/CAG TDM policy to ensure full compliance and the most effective TDM plans. CHS Consulting Group had the most complete proposal but was also the highest cost. ALTRANS also had a sufficient proposal, but it did not include the level of detail. For Cities21, City staff performed a full bid review, verified qualifications, license, and checked references. All verifications are satisfactory.
A contract term of three years is proposed, with a one-time six-month extension to provide flexibility. The three years is proposed to enable the initial program set up and implementation, including developing program fees, as well as anticipating that the pending complex applications that will require TDM programs, such as University Circle Phase II. In addition to reviewing TDM programs for new development, the TDM program administrator will also work with large employers to implement TDM programs. Cities21 assumes a total of 1,213 hours over three years will be required, which also assumes that work will adjust depending on the number of active projects. It is expected that the City will initially fund the program development. However, after implementation, it is anticipated the program will be funded by fees paid by property owners. The proposal anticipates while work may fluctuate depending upon the number of TDM programs that need to be reviewed, the consultant will also continue to assess and refine the program, including the program guidelines.
Contingent upon completing all requirements of the contract specifications, staff recommends that the City Council authorize the City Manager to execute a contract for with Cities21 to provide the TDM Program Administration for a cost of up to $121,300 for a period up to three years, with two 6-month extensions built-in if more time is necessary.
Fiscal Impact
3 Staff is using hourly rate as a comparison because the total cost will depend on the number of projects that are approved by the City, which is unknown at this point.
The initial cost of forming and implementing the program will be supported by the General Fund. The intent is to fund the program through TDM review fees collected during the entitlement process and annual fees for compliance review afterwards. The monies collected would support the implementation of the TDM program, including staffing. If a TMA is formed, the organizations would be supported by membership dues paid for by the private property owners.
Public Notice
The public was provided notice of this agenda item by making the agenda and report available on the City’s website and on a bulletin board located at City Hall: 2415 University Avenue, East Palo Alto.
Environmental
Pursuant to California Environmental Quality Act (CEQA) Guidelines section 15378(b)(5), the adoption of an ordinance of general policy does not constitute a “project” in that it is a governmental organizational or administrative activity that will not result in direct or indirect changes in the environment.
Attachments
1. Resolution