City Council
Staff Report
From: City Manager
Report Type: CONSENT CALENDAR
Lead Department: City Clerk
Meeting Date: March 2, 2026
Report #:2601-5865
TITLE
Endorsement of the Connect Bay Area Transit Initiative
RECOMMENDATION
As a follow up to the City Council request to review and endorse the Connect Bay Area Transit Initiative, staff recommends the City Council endorse the Initiative.
BACKGROUND
The City Council routinely considers adopting positions on state and local ballot measures in election years. These items are typically heard in late October when the County Registrar of Voters mails out ballots. Staff notes any City Council-approved Legislative Guidelines that align with the ballot measure as context, but alignment with a guideline does not obligate the City Council to take a position. The agenda items provide information to voters and serve as a forum for City Council discussion and consideration of positions.
When the City Council adopted its 2026 Legislative Guidelines in January 2026, City Council expressed interest in early endorsement of a potential ballot measure known as ”Connect Bay Area Transit.”1 The Connect Bay Area Committee is working to place a five-county sales tax to fund public transit on the November 3, 2026 general election ballot. Supporters of the initiative are currently gathering signatures to qualify for the ballot and early support from the City could help the qualification effort. The City Council directed staff to prepare a staff report with more information for City Council review and to return to the City Council with an agenda item to endorse the measure.
ANALYSIS
The Connect Bay Area Transit initiative aligns with the following Palo Alto Legislative Guidelines:
1 January 20, 2026 City Council Summary Minutes:
https://recordsportal.paloalto.gov/WebLink/DocView.aspx?id=85302&dbid=0&repo=PaloAlto
Deters single occupancy drivers and alleviates local traffic congestion and promote active transportation safety infrastructure
Supports local and regional public transportation
Supports expansion and operations of public transit options throughout Palo Alto, especially funding for transit
Connect Bay Area Transit is a citizens’ initiative proposed for the November 3, 2026 general election that, if approved, would enact a regional sales tax to fund public transit. The initiative is led by a coalition of labor, environmental, business, and transportation organizations. Supporters include SEIU 1021, Greenbelt Alliance, SPUR, and the Silicon Valley Bike Coalition. A complete list of endorsements is available on the campaign’s website.3 SB 63, authored by State Senators Arreguin and Weiner, passed in 2025 and authorized the placement of the measure on the ballot. Connect Bay Area opted to place the measure on the ballot via a citizen’s initiative and must gather over 186,000 eligible signatures across the five counties by June 6, 2026 to qualify. The coalition officially launched its signature gathering effort on January 23, 2026.
The initiative’s full text is included with this report as Attachment A. The measure would set a half-cent sales tax in Alameda, Contra Costa, San Mateo, and Santa Clara counties and a one-cent sales tax in San Francisco County for 14 years. The measure is designed to prevent transit service cuts, provide stable operating funds, and fund transit improvements, capital projects and targeted road improvements. Funding will support the operation of BART, Caltrain, AC Transit, Muni, Tri-Valley Wheels, County Connection, Union City Transit, Tri Delta Transit, WestCAT, SF Bay Ferry, Santa Clara Valley Transportation Authority (VTA), and Golden Gate Transit. The two agencies operating in Palo Alto, Caltrain and VTA, will annually receive an estimated $75 million and $264 million, respectively.4
Caltrain services operate in Palo Alto at 15- to 30-minute headways at three stations (Palo Alto, California Avenue and San Antonio), while VTA services include routes 22 and 522 (El Camino Real), 21 (Middlefield Road to Sand Hill Road) and 89 (California Avenue to VA Hospital).
Additionally, limited SamTrans (ECR, 280, 281, 296, 397) and AC Transit (U, DB) services also serve the Palo Alto Transit Center.
An independent oversight committee comprised of representatives from each county will ensure that revenues are spent appropriately.
Next Steps after Approval: If the City Council chooses to endorse this Initiative, staff will include this endorsement on the City’s intergovernmental affairs webpage and will also communicate to 3 Connect Bay Area Endorsements: https://connectbayarea.com/endorsements 4 SB 63 09/12/25 Senate Floor Analysis:
https://leginfo.legislature.ca.gov/faces/billAnalysisClient.xhtml?bill_id=202520260SB63# the Connect Bay Area Committee that they can reference the City of Palo Alto’s support for this Initiative.
FISCAL/RESOURCE IMPACT
There is no fiscal impact associated with the recommended endorsement action.
STAKEHOLDER ENGAGEMENT
Staff in the Office of Transportation, City Manager’s Office, and City Clerk’s Office collaborated on this staff report. The City Council discussed the ballot measure during discussion of Item 11 at its January 20, 2026 meeting.
ENVIRONMENTAL REVIEW
The City’s legislative advocacy activities are not a project under section 15378(b)(5) of the California Environmental Quality Act Guidelines (administrative activities that will not result in direct or indirect physical changes in the environment).
ATTACHMENTS
Attachment A: Connect Bay Area Transit Initiative Text
APPROVED BY:
Ed Shikada, City Manager
Mahealani Ah Yun, City Clerk