SUBJECT: Resolution Supporting Calabazas Creek Trail Project, Authorization for the City Manager to Execute Required Agreements for Bicycle/Pedestrian Improvement and Traffic Signal Modification Projects and Budget Modification No. 14

In 1997, 1998, and 1999 the City Council authorized submittal of grant applications for candidate projects for federal ISTEA funding and regional Transportation Fund for Clean Air funding. Subsequently, grants were approved for bikeway, trail and traffic signal system projects.

At this time the City is authorized to begin work on the projects, although formal project agreements and other requirements will need to be completed. The five projects in question all have time limits on the availability of funds. In order to expedite completion of the projects and assure funding, staff requests Council authorization for the City Manager to execute project documents as necessary. One project, the Calabazas Creek Trail project, requires a Council resolution at this time committing City matching funds to the project. Staff also recommends a budget modification to add these projects to the Resource Allocation Plan.

Land Use and Transportation Element C3.5.4, Maximize the provision of bicycle and pedestrian facilities.

Land Use and Transportation Element C3.3, Optimize city traffic signal system performance.

Fiscal Sub-Element7.1B.4d, Pursue and use intergovernmental assistance for projects in the Ten-Year Capital Improvement Plan.

Sunnyvale has been awarded a $ 350,000 federal and state grant for bikeway network improvements through the Transportation Equity Act for the 21^st Century (TEA-21).

The Metropolitan Transportation Commission’s "25%" TEA-21 Transportation Systems Operations (TSO) funding program is bi-annual funding program that provides federal and state funding for eligible projects. TEA-21 provides flexible transportation funding for a broad range of transportation projects including roadway, transit, bike and pedestrian projects. The State of California provides state matching funds for federally-funded projects that meet the criteria for non-motor vehicle capacity increasing projects.

Projects to be included in the TSO Program are prioritized by the Santa Clara County congestion management agency and the Metropolitan Transportation Commission through a competitive process. Sunnyvale’s project was one of a small number of projects selected in the county to be included in the initial round of TEA-21 funding for the region.

Caltrans will require a project funding agreement, environmental clearance, and other certifications as the project design and award moves forward. At this time, staff is recommending that the City Council authorize the City Manager to execute agreements required by the funding source.

Sunnyvale also submitted three grant applications for Transportation Fund for Clean Air (TFCA) "Program Manager" funds. The Transportation Fund for Clean Air is a Bay Area Air Quality Management District (BAAQMD) program funded by a surcharge of $ 4.00 on motor vehicle registration fees paid within its jurisdiction. The surcharge revenues are to be used to implement specified transportation control measures that are included in the BAAQMD's Clean Air Plan, developed and adopted pursuant to the requirements of the 1988 California Clean Air Act.

The TFCA is the San Francisco Bay region surcharge fund source for clean air transportation projects. Sixty percent of the annually available funds are administered by the BAAQMD, while 40% return to Bay Area counties. These grants were awarded out of the 40% fund.

Eligible projects include:

All three City project proposals received funding. Projects and award amounts are as follows:

Project construction authorization and funding was granted in July 1999. This funding source requires project funding agreements between the City and BAAQMD; However, these grant agreements are still being prepared by the Air District. In order to facilitate timely project construction, staff is recommending that these projects be budgeted now and the City Council authorize the City Manager to execute agreements required by the funding source as they come available.

At its October 7, 1999 meeting the Valley Transportation Authority (VTA) Board of Directors approved the first program of Transportation Enhancements Fund projects for Santa Clara County. Included in the award of $ 1.5 million in projects countywide was a City of Sunnyvale application for a Calabazas Creek Trail. This project will connect the existing Hetch Hetchy Bike Path to the east bank of Calabazas Creek and provide trail access between Route 101 and Baylands Park along the Creek. The project provides access from North Sunnyvale neighborhoods to Baylands Park and the Bay Trail.

The Transportation Enhancements Fund is a special TEA-21 funding category administered by the VTA to fund specialized local transportation system enhancements. Twelve categories of projects are eligible, including bike and pedestrian facilities and programs, scenic and historic highway projects, landscaping, historic preservation, removal of outdoor advertising, and water pollution mitigation.

As part of the programming agreement between the VTA and the Metropolitan Transportation Commission, a City Council resolution is required committing matching funds for the project. A resolution is attached (Attachment B) for the Council’s consideration. Additional project agreements and requirements will be forthcoming. At this time staff is recommending approval of the attached resolution and authorization for the City Manager to execute any additional requirements of the funding source.

The City has been successful at securing $ 1,320,000 in outside grant revenue for these projects. In order to secure this revenue, it is necessary to budget an additional $ 70,500 in City matching funds.

This project will be 100% reimbursable by Federal and State funds. This constitutes a positive impact of $ 350,000 in outside revenues for bikeway improvements.

The City Council certified the availability of matching funds for the Arques Avenue and Caribbean Drive bikeway projects in March 1998, when authorizing the submittal of grant applications. A 10% project match is required. These funds are not yet budgeted. A budget modification of $ 21,050 in Gas Tax funds is requested to provide the required local match.

For the Sunnyvale Arterial Management Project, staff leveraged existing budgeted funds for a Mathilda Avenue Traffic Signal Controller Replacement Project (820160) in the grant application.

Total TFCA revenue for the three projects is $ 589,450.

Council authorized pursuit of a Calabazas Creek Trail project in March 1997. The Transportation Enhancements Fund requires an 11.5% local match. Staff is requesting a budget modification in the amount of $ 49,450 in Gas Tax funds to meet the local match requirement. Total outside revenue leveraged by these funds is $ 380,550.

See Attachment A for detail explanation of budget modification.

Posting of the Council Agenda. Reports to Council are also available at the City Library and the City’s Web Site.

1. Authorize the City Manager or his designee to execute required agreements for TEA-21 Transportation Systems Operations, State Transportation Improvement Program, Transportation Fund for Clean Air, and Transportation Enhancements Fund grants that have been awarded to the City.
2. Review and approve the attached resolution certifying the availability of matching funds for a Calabazas Creek Trail Project.
3. Approve Budget Modification No. 14 in the amount of $ 1,390,500 and direct staff to program funds into capital projects as required.
4. Elect not to authorize the City Manager to execute grant funding requirements and forego regional, Federal and State funding.
5. Elect not to approve the attached resolution certifying the availability of matching funds for a Calabazas Creek Trail Project and forego Federal funding.
6. Do not approve Budget Modification No. 14

Staff recommends Alternatives #1, 2 and 3.

Prepared by:

Jack Witthaus
Transportation Planner

Reviewed by:

Raymond C. Williamson
City Traffic Engineer

Mary J. Bradley
Director of Finance

Marvin A. Rose
Director of Public Works

Approved by:

Robert S. LaSala
City Manager

A – Budget Modification No. 14 Detailed Explanation
B - Resolution