Special Notice / Hearing: None__
Vote Required: Majority
To: Honorable Board of Supervisors
From: Jasneet W. Sharma, Director, Sustainability Department
Subject: Agreement with the Peninsula Corridor Joint Powers Board to Participate in the Caltrain GoPass Program
RECOMMENDATION:
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Adopt a resolution:
A) Authorizing the execution of an agreement with the Peninsula Corridor Joint Powers Board for the Caltrain GoPass Program, providing unlimited Caltrain rail service to eligible County employees, for the term of November 1, 2026 through December 31, 2027, in an amount not to exceed $1,579,546.36; and
B) Authorizing the Director of the Sustainability Department, or designee(s), to execute the agreement and any amendments.
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BACKGROUND:
On July 27, 1993, this Board established a monthly transit subsidy for County employees to “encourage employees to commute to work in a manner other than driving alone” (Resolution No. 057387). This also ensured compliance with Bay Area Air District Regulation 14, Rule 1: Bay Area Commuter Benefits Program, which requires employers with fifty or more full-time employees to offer commuter benefits to their staff to reduce drive-alone commutes and promote alternative travel modes.
On May 14, 2019, this Board approved an agreement with Edenred Benefits, LLC (Edenred), formerly Edenred Commuter Benefit Solutions LLC, for $2,900,000 with a contract term of May 14, 2019 through May 13, 2022, to provide commute alternative benefit services (Resolution No. 076588). Edenred services included distribution of the monthly transit benefit valued at $150 per employee for mass transit (bus, train, and ferry) or micromobility rentals (bike or scooter) with only 4% of the contract value paying for administrative overhead.
On January 26, 2021, this Board adopted the Government Operations Climate Action Plan (GOCAP) (Resolution No. 077960). This formalized the County’s commitment to reduce employee commute-related greenhouse gas emissions, which are primarily generated by drive-alone travel, by 95 percent by 2035.
On October 1, 2024, the County competitively procured a consultant to conduct a comprehensive assessment of its employee commute programs and develop recommendations for a future program structure. The assessment recommended transitioning to a regional pilot program with unlimited Bay Area transit access for eligible employees to better align with GOCAP goals and post-pandemic commuting patterns.
On August 25, 2026, the Board authorized the fourth amendment to the Edenred agreement (Resolution No. 082096), extending the County’s commuter benefits contract through December 31, 2027. The amendment ensures continuity of commuter benefit services while implementing recommendations from the program reassessment.
Since 2020, program participation has grown by approximately 105 percent, from 891 to 1,824 participants, corresponding to an estimated increase from roughly 205,000 to over 420,000 drive-alone trips avoided annually.
DISCUSSION:
The Caltrain GoPass Program (GoPass) is an employer-sponsored, unlimited-ride annual transit pass offered by the Peninsula Corridor Joint Powers Board (JPB), which owns and operates Caltrain rail service between San Francisco and Gilroy. GoPass provides eligible employees with unlimited Caltrain travel across all zones for the term of the agreement. Eligible GoPass users are defined by JPB as employees assigned to a participating County worksite who reside in one of the 17 Bay Area and surrounding counties served by the program, excluding non-qualifying worksites, interns, extra help, contractors, consultants, and sworn peace officers.
Enrollment in the GoPass program is required for the County as an add on in order to participate in the Metropolitan Transportation Commission’s (MTC) Clipper BayPass Pilot Program. MTC’s BayPass Pilot Program is an employer-sponsored pass that provides unlimited access to all Bay Area transit services that accept Clipper, including BART, SamTrans, and Lyft Bike. All ferry, rail, and bus transit systems are included except the cable car service operated by the San Francisco Municipal Transportation Agency. Together, GoPass and BayPass will provide 5,079 eligible County employees with comprehensive regional transit access, including unlimited Caltrain rides through GoPass and unlimited rides on participating Bay Area transit systems through BayPass. A 14-month partnership agreement with MTC to participate in the Clipper BayPass Pilot Program is also included in the September 15, 2026 Board packet for approval.
Data from the MTC pilot program shows that offering unlimited, free-at-the point-of-use travel on all transit services in the Bay Area boosts public transit ridership by removing financial penalties for transfer, simplifying access, and improving flexibility.
To meet the County’s goal of increased public transit ridership by County employees, the County wishes to enter into a 14-month agreement with JPB to provide GoPass to eligible County employees from November 1, 2026, through December 31, 2027. Under the agreement, the County will pay JPB a total not to exceed $1,579,546.36 for 5,079 passes over the 14-month contract term.
In accordance with County procurement policy, the Procurement Director or designee has approved a waiver of competitive solicitation requirements for this agreement due to the JPB’s status as a sole source provider of the Caltrain GoPass Program. The County Attorney’s Office has reviewed and approved the resolution and agreement as to form.
PERFORMANCE MEASURE:
|
Measure |
FY 2026-27 Target |
FY 2027-28 Target |
|
Percent of Caltrain GoPass passes received for eligible employees |
100% |
100% |
COMMUNITY IMPACT:
This program supports community health by reducing air pollution and tailpipe emissions generated by employee vehicle travel. Removing internal-combustion engine vehicles, which produce higher levels of emissions and pollutants, can help reduce local rates of asthma, cardiovascular diseases, and other acute health and quality of life impacts. The program also supports employee health and quality of life by reducing driving-related stress and encouraging physical activity through active commute options.
FISCAL IMPACT:
The program is funded through Measure A reimbursement and Net County Cost. Measure A is the San Mateo County Transportation Authority half-cent transportation sales tax to improve transit and relieve traffic congestion. Funding in the amount of $1,200,000 is reimbursed annually through Measure A with an additional $931,628 in one-time funding to be reimbursed from Measure A in FY 2026-27. Funding of $789,773.18 which is 50% of the contract value to be paid on November 1, 2026 is included in the FY 2026-27 Recommended Budget which fully funds the FY 2026-27 portion of the agreement. There is no new Net County Cost associated with this agreement.