City Council
Staff Report
From: City Manager
Report Type: CONSENT CALENDAR
Lead Department: Transportation
Meeting Date: May 4, 2026
Report #:2602-5919
TITLE
Adopt a Resolution Making Required Findings in Support of the City’s Application for FY 2026/27 Transportation Development Act (TDA) Article 3 Funds in the Amount of $326,590 for the South Palo Alto Bikeways Demonstration Project and Authorize Staff to Submit the Application; CEQA status - not a project.
RECOMMENDATION
Staff recommends that the City Council:
1. Adopt a Resolution making required findings in support of the City’s application for FY 2026/27 Transportation Development Act (TDA) Article 3 funds in the amount of $326,590 for the South Palo Alto Bikeways Demonstration Project (Attachment A); and
2. Authorize staff to submit the City’s TDA Article 3 request to Santa Clara County for inclusion in the countywide coordinated claim to the Metropolitan Transportation Commission.
EXECUTIVE SUMMARY
The City is requesting a TDA Article 3 grant allocation of $326,590 in 2026 to support the South Palo Alto Bikeways Demonstration Project, a quick-build pilot on East Meadow Drive and Fabian Way that will install temporary protected and/or buffered bike lanes and visibility enhancements at existing crossings. The project is intended to reduce conflicts between road users by separating modes and improving visibility and safety, particularly during peak school commute periods.
The City was awarded a federal Safe Streets for All Planning and Demonstration Grant for this project in FY 2025. Due to construction cost increases, the City is requesting TDA Article 3 funds to supplement the federal grant and support timely implementation of the demonstration elements.
BACKGROUND
The Transportation Development Act Article 3 (TDA3) program provides funding for projects that benefit pedestrian and bicycle. Program revenues are based on a Statewide quarter-cent sales tax that is distributed annually to the Metropolitan Transportation Commission (MTC), the Bay Area’s regional transportation planning agency. In Santa Clara County, Santa Clara Valley Transportation Authority (VTA) is responsible for submitting a coordinated Countywide claim to the MTC for each city and the County.
In order to receive TDA3 funds, the City’s Pedestrian and Bicycle Advisory Committee must review and recommend a project for TDA3 funding, and City Council is required to adopt a resolution approving the project and committing to required findings. The Metropolitan Transportation Commission allocates TDA3 funds to each city on a per-capita formula basis and allows cities to aggregate TDA3 funds for up to five years.
In recent years, annual TDA3 funding allocated to the City has ranged from $54,000 to $98,000.
The City has used these funds for a variety of pedestrian and bicycle projects including completion of the Bicycle Pedestrian Transportation Plan Update. The City of Palo Alto must allocate TDA3 funds this year because the last allocation occurred in FY2021/22.
On August 9, 2021, Council approved the South Palo Alto Bikeways Project concept plan1 which included changes to East Meadow Drive, Fabian Way, and the PAUSD-owned Waverly Multi-Use Path. On December 16, 2024, Council authorized acceptance of the federal Safe Streets for All grant agreement in order to implement a quick-build pilot of the project on East Meadow Drive and Fabain Way only.2 This federally funded demonstration project omits the PAUSD-owned Waverley Multi-Use Path that was included in the original project concept, since the Waverley segment is not quick-build and therefore not eligible for the funding source.3
ANALYSIS
South Palo Alto Bikeways Demonstration Project4 will install a temporary striping plan and upgraded bikeway treatments to improve bicyclist visibility and reduce conflicts between road users along East Meadow Drive and Fabian Way. These two corridors represent key current and 1 City Council, August 9, 2021: Agenda Item #12: SR #12323, https://recordsportal.paloalto.gov/WebLink/DocView.aspx?id=2277&dbid=0&repo=PaloAlto&searchid=b35d8295- 7e28-4de8-a095-cac393662577
2 City Council, December 16, 2024: Agenda Item #9: SR #2411-3763, https://recordsportal.paloalto.gov/WebLink/DocView.aspx?id=6532&page=1&dbid=0&repo=PaloAlto 3 South Palo Alto Bikeways Project website:
https://www.paloalto.gov/Departments/Transportation/Transportation-Projects/South-Palo-Alto-Bikeways- Project
4 South Palo Alto Bikeways Demonstration Project website:
https://www.paloalto.gov/Departments/Transportation/Transportation-Projects/South-Palo-Alto-Bikeways- Demonstration-Project
future routes for students traveling from housing areas within the San Antonio Road Area and their respective schools.
The quick-build approach allows the City to pilot changes, gather input, and evaluate performance before considering permanent corridor modifications. Key elements include:
Temporary protected and/or buffered bike lanes along East Meadow Drive between Alma and Middlefield to separate road users, accommodate peak school commute traffic, and improve bicyclists’ visibility and safety
Lane conversion to install temporary protected and/or buffered bike lanes along Fabian Way to separate road users, provide an improved school commute route, and improve bicyclists’ visibility and safety
High-visibility enhancements to existing crosswalks using pavement markings and related quick-build tools such as striping, flex posts, pavement markings Community engagement and education, including a bike ride to help residents and school communities understand how to use the new bike infrastructure
FISCAL/RESOURCE IMPACT
South Palo Alto Bikeways Demonstration Project is estimated to cost approximately $2.2 million, which has been allocated in the FY2027-2031 Proposed Capital Improvement Program (CIP TR-27005), which was created out of the Safe Routes to School CIP (PL-00026). Of this amount, the City has been awarded $888,000 in federal funding through a Safe Streets for All (SS4A) Planning and Demonstration Grant, along with $222,000 in matching funds from the Safe Routes to School CIP (PL-00026). Federal grant funding of up to $500,000 has been secured for the first phase to finalize striping plans and complete environmental review. Prior to the start of construction, a grant amendment will be required to authorize the use of any unexpended portion of the initial $500,000 toward construction costs.
Recent construction cost escalation and refined cost estimates have increased the pilot project cost from $1.1 million to $1.6 million. In addition, $600,000 would be required for removal of the pilot improvements if it is deemed unsuccessful. Including potential removal costs, the total project cost is approximately $2.2 million.
The requested $326,590 TDA Article 3 allocation will supplement the federal grant and support completion of the demonstration improvements.
Table 1 provides the South Palo Alto Bikeways Demonstration Project Proposed Funding Plan:
Table 1: South Palo Alto Bikeways Demonstration Project Funding Plan Fund Source Amount
Federal SS4A Grant $888,000
Requested TDA3 Allocation $327,000
City SS4A Local Match (CIP #PL-00026) $222,000
BPTP Implementation CIP $749,000
Table 1: South Palo Alto Bikeways Demonstration Project Funding Plan Fund Source Amount
Total Project Cost $2,186,000
STAKEHOLDER ENGAGEMENT
Community outreach occurred as part of the South Palo Alto Bikeways project in 2020 and 2021. Following Council approval, staff updated the City/School Transportation Safety Committee (CSTSC) about efforts to acquire grant funds. Parent support for the project was included in the 2024 Safe Streets for All application that was ultimately awarded. Staff continue to inform the CSTSC about the status of the project.
The TDA3 allocation was reviewed through the City’s Pedestrian and Bicycle Advisory Committee (PABAC) on March 3, 2026, consistent with the required findings included in the attached resolution (Attachment A). An earlier draft of the attached MTC Complete Streets Checklist was reviewed by PABAC, and the document now reflects PABAC’s review and comments (Attachment B). The MTC Complete Streets Checklist is a mandatory documentation tool used by project sponsors in the San Francisco Bay Area to ensure transportation projects funded by the Metropolitan Transportation Commission (MTC) safely accommodate all users, including pedestrians, cyclists, transit riders, and motorists. It requires cities to consider design features like bike lanes, sidewalks, and traffic calming early in the planning phase to comply with regional safety and equity goals.
The quick-build project will include outreach to residents and school communities as part of the demonstration, including a City-hosted bike ride to educate the community about the new bike facility configuration and safe bicycling behavior.
ENVIRONMENTAL REVIEW
Council action to adopt the resolution and submit a funding request is not a project under the California Environmental Quality Act (CEQA) because it is a fiscal activity that does not, by itself, commit the City to a specific project approval that may result in a potentially significant physical impact on the environment, consistent with CEQA Guidelines section 15378(b)(4). Separate CEQA compliance, as applicable, will be completed for project implementation.
ATTACHMENTS
Attachment A: Resolution Making Required Findings in Support of the City’s Application for FY 2026/27 TDA Article 3 Funds in the Amount of $326,590 for the South Palo Alto Bikeways Demonstration Project
Attachment B: MTC Complete Streets Checklist
APPROVED BY:
Ria Hutabarat Lo, Chief Transportation Official