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City Council
Staff Report
From: City Manager
Report Type: CONSENT CALENDAR
Lead Department: Transportation
Meeting Date: June 15, 2026
Report #:2605-6344
TITLE
Approval of Amendment No. 4 to Contract Number C23184827 with Nomad Transit, LLC (Via) in the Amount of $152,000 for a total not to exceed $5,053,550 to Extend the City of Palo Alto On- Demand Transit Service for Four Months through October 31, 2026; Approval of Amendment No. 3 to extend the Cost Sharing Agreement with Stanford University to Partially Fund Palo Alto Link Service up to $200,000 in FY 2027 through October 31, 2026; and Approval of a three-year Contract with the Palo Alto Transportation Management Association (PATMA), in the Amount of $500,000; CEQA status – not a project.
RECOMMENDATION
Finance Committee and staff recommends that the City Council:
1. Approve and authorize the City Manager or their designee to execute Amendment No. 4 to Contract C23184827 with Nomad Transit, LLC (Via) (Attachment A) to provide Palo Alto Link Services, extending the contract term to October 31, 2026, and increasing the not to exceed amount by $152,000, which results in revised not-to exceed amount of $5,053,550 during a total term of approximately 3.5 years.
2. Approve and authorize the City Manager or their designee to amend the Cost Sharing Agreement to receive up to $200,000 addition funding from Stanford University to fund Palo Alto Link Services through October 31, 2026 (Attachment B).
3. Approve and authorize the City Manager or their designee to execute a three-year contract with the Palo Alto Transportation Management Association (PATMA), with an initial outlay of $500,000 total in FY 2027 (Attachment C).
BACKGROUND
On March 7, 2023, the City initiated a contract for Palo Alto Link as an 18-month pilot supported by a VTA Measure B Innovative Transit grant and a cost sharing agreement with
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Stanford University.1 This on-demand service was extended on October 21, 2024,2 and again on June 17, 2025 when Council direct staff “to consider and present termination implications and alternative service options by end of 2025.”3 On March 2, 2026, City Council reviewed service performance and funding options for Palo Alto Link, which has been provided at an average cost of $26 per ride. Councilmembers asked staff to explore voucher-type programs by the budget timeline to continue to support the most vulnerable Link users, such as seniors, low- income residents, and people with special needs when the service winds down.4 In response to this request, on May 6, 2026, staff explored various options and presented the Office of Transportation’s proposal to Finance Committee in the context of budget discussions. Finance Committee supported the proposal (with one member recused) with the expectation that staff return to Council to execute or amend agreements with Stanford University, Nomad Transit and PATMA in order to provide 90-day transition.
ANALYSIS
In order to address long term fiscal sustainability while continuing to serve the most vulnerable users, the City will eliminate Palo Alto Link service and transition to a subsidized discount program to support access for vulnerable users by providing an additional $100,000 to expand Palo Alto Transportation Management Association (PATMA) services (which are currently focused on Palo Alto workers) to Palo Alto residents who are low-income, seniors, people with disabilities, or families with special needs children. PATMA services for residents will include:
Transit passes (Caltrain GoPasses and VTA/Samtrans/AC Transit bus passes) Bike subsidies (Bike Love and BikeX free refurbished bikes) Senior rides (Boosting Avenidas' program)
Transportation Network Company (TNC) vouchers for specific purposes (such as late night Lyft service)
Transportation information
This action extends Palo Alto Link services and Stanford Research Park funding agreement and partnership through October 30, 2026.
1City Council, December 12, 2022, Item #8, Staff Report (SR) 14959 https://recordsportal.paloalto.gov/WebLink/DocView.aspx?id=82138&dbid=0&repo=PaloAlto&searchid=31cef842 -f53f-40a7-9527-3ebbac07ccbd
2 City Council, October 28, 2024, Item #10, SR 2408-3387 https://recordsportal.paloalto.gov/WebLink/DocView.aspx?id=83059&dbid=0&repo=PaloAlto&searchid=c3b926f9 -6e23-482b-8da1-751b909c99d3
3 City Council, June 17, 2026, Item #18, SR 2506-4761
https://recordsportal.paloalto.gov/WebLink/DocView.aspx?id=83482&dbid=0&repo=PaloAlto&searchid=6be824c7 -fe2a-400d-91bb-b1b4f8010524 and June 16, 2026, Item #17, SR 2506-4864 https://recordsportal.paloalto.gov/WebLink/DocView.aspx?id=83513&dbid=0&repo=PaloAlto&searchid=f82ba016 -d545-499c-90ff-199f842b42af
4 City Council meeting March 2, 2026, Item #3 SR #2511-5431:
https://cityofpaloalto.primegov.com/Portal/Meeting?meetingTemplateId=18673 9 9
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This action also recommends approval of a new contract agreement with PATMA to continue to provide existing services totaling $400,000 and to expand those services to residents by and additional $100,000 for a total not to exceed of $500,000. The last agreement with PATMA was approved by the City Council on September 11, 2023 for a term of three years9. The Palo Alto Transportation Management Association (PTMA) implements programs to reduce single- occupancy vehicle (SOV) trips to and from Palo Alto. The funding agreement between the Palo Alto TMA outlines use of City funds to trip reduction programs in the Downtown and California Avenue areas and requires the TMA to report on the use of these funds in an annual report.
Services as noted above were expanded to citywide support in FY 2025. Increasing FY 2027 General Fund program services by $100,000seeks to mitigate some of the loss in services for vulnerable Palo Alto Link users, specifically, senior, disabled, and families of disabled riders. The most recent PATMA Annual report was transmitted to the City Council on May 11, 202610.
This action supports three local Palo Alto non-profit organizations including PATMA, BikeX and Avenidas. It also reinforces transit service in the City and helps to advance long-term integrated transportation and land use goals.
FISCAL/RESOURCE IMPACT
This action reduces the City’s long term fiscal liability to provide Palo Alto Link services without outside grant funding. The City will achieve a gross cost saving of approximately $176,000 in Fiscal Year 2027. In FY 2027, cost savings from Fiscal 2026 will be rolled over to provide four months of additional service, through October 31, 2026, utilizing Transportation For Clean Air funding and Stanford Research Park partnership funding. In subsequent years, savings of approximately $460,000 are anticipated.
PATMA services for commuters in FY 2026 totaled $400,000, and will be increased to $500,000 for FY 2027 as the City transitions away from Palo Alto Link services and expands services to both commuters and vulnerable residents. Funding for the first year of the proposed agreement with the TMA was appropriated in the University Avenue Parking Fund ($200,000) and General Fund ($300,000) as part of the FY2027 Adopted Operating Budget. Funding for future fiscal years is subject to City Council approval through the annual budget process.
STAKEHOLDER ENGAGEMENT
Community engagement has been ongoing since the program began. Activities include tabling at community events and destinations and social media campaigns. Feedback from riders has indicated support for expanded weekend and extended evening hours for Palo Alto Link as well 9 City Council, September 11, 2023, Item #7,
https://recordsportal.paloalto.gov/WebLink/DocView.aspx?id=82523&dbid=0&repo=PaloAlto&searchid=36c2df33 -eb02-45c4-b0e8-8084c610accc&cr=1
10 City Council, May 11, 2026, Item B,
https://recordsportal.paloalto.gov/WebLink/DocView.aspx?id=88049&dbid=0&repo=PaloAlto&searchid=c44206d5 -cc9a-4f64-8322-dc69fbe167eb
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as support for services for youth access and vulnerable users, including disabled, low-income, and senior riders. Other engagement has highlighted a potential community preference for fixed route options. PATMA has long engaged with the local business community and will expand their engagement to eligible resident stakeholders to expand their suite of services.
ENVIRONMENTAL REVIEW
Council action on this item is not a project as defined by CEQA under CEQA regulation 15061(b)(3) and 15378(b)(4) as a government funding mechanism or other fiscal activity.
ATTACHMENTS
Attachment A: Nomad Transit, LLC (Via), Contract C23184827 Amendment No. 4 Attachment B: Cost-Sharing Agreement with Stanford University for On-Demand Transit Services, Amendment No. 3
Attachment C: Palo Alto Transportation Management Association (PATMA), Contract APPROVED BY:
Ria Hutabarat Lo, Chief Transportation Official