This report recommends Council adopt Budget Modification No. 6 to create a new account for the Transportation Development Act 2002/2003 to reflect the $252,186 grant allocation and the related expenditures for the FY 2002/2003 Budget. A new TDA account is created annually in the budget for the City's annual TDA allocation. Additionally, as per the previously Council approved grant funding allocation, $216,520 of previous unused TDA funds from completed or otherwise funded projects will be reallocated to the new TDA 2002/2003 account. This will bring the total TDA Article 3 2002/2003 grant funding to $468,706.

The $468,706 will be budgeted into the TDA 2002/2003 account, and then allocated to five existing capital projects. City Council authorized filing the request for this allocation on the May 14, 2002. The Sunnyvale Bike Network Project will be allocated $25,280. The Calabazas Creek Trail will be allocated $270,519. The Caribbean Drive Bike Lane project will be allocated $50,372. The Arques Avenue Bike Lane project will be allocated $36,660. The County Bike Route 8 project will be allocated $85,875.

The Santa Clara Valley Transportation Authority (VTA) has approved the Sunnyvale allocation request and has submitted it the Metropolitan Transportation Commission (MTC). The final TDA Article 3 allocation will be administered from the MTC. This budget modification establishes the account to allow for expenditure and reimbursement of funds.

The Transportation Development Act (TDA) is a source of funds created by State legislation which annually returns to each region in the State 1/4 of 1% of sales tax revenues which are to be used for transportation projects. TDA Article 3 funds are earmarked for bicycle and pedestrian projects.

The TDA Article 3 application process involves submittal of the application to the VTA towards the beginning of each year. This year the call for projects for the 2002/2003 cycle was submitted in March. The Santa Clara Valley Transportation Authority (VTA) prioritizes the submitted projects and then submits their list of recommended projects to the Metropolitan Transportation Commission (MTC) for approval. Traditionally, MTC approves the projects with instruction to implement the projects within three years of the funding year. The City implements the approved projects and then submits paperwork to MTC to be refunded for the money expended.

Projects which have been funded from prior years include purchase and installation of bike racks and lockers, marking of bike symbols on loop detectors, upgrading of loop detectors, purchase of bike rodeo equipment, sidewalk installations around the City, handicap ramp construction, the installation of audible pedestrian signals, bike lane construction, and a comprehensive bike facilities study.

The VTA apportionment formula gives 70% of the funds to cities and the County according to population. The remaining 30% will be available for bicycle projects listed on the Valley Transportation Plan 2020 Tier 1 Bicycle Expenditure Program project list.

The following documents contain policy direction on this issue:

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

Bicycle Plan BP.B3; The City of Sunnyvale shall pursue all available funding options for bicycle facility construction and improvements.

Fiscal Sub-Element 7.1B.4d; Pursue and use intergovernmental assistance for projects in the Ten-Year Capital Improvement Plan.

At its May 14, 2002 meeting the City Council authorized staff to submit funding applications for FY 2002/2003 TDA funding for bicycle and pedestrian projects. In order to receive funds in the FY 2002/2003 funding cycle, the City of Sunnyvale submitted a list of potential projects to VTA and to MTC. The VTA has approved the Sunnyvale allocation request and has submitted it the Metropolitan Transportation Commission (MTC). The final TDA Article 3 allocation will be transmitted from, and administered by the MTC. These projects were reviewed and supported by the City Council and the Sunnyvale Bicycle and Pedestrian Advisory Committee prior to submittal. This year the City requested allocation of $468,706 for eligible projects. This was through a combination of $82,363 FY 2002/2003 TDA allocations, $216,520 reallocation of previous TDA funding, and a $169,823 TDA advance. Staff recommends a budget modification to add these project funds to the FY 2002/2003 Budget.

Funds will be added to a new project for Transportation Development Act 2002/2003 to reflect the $252,186 grant funding increase and the related expenditures for the FY 2002/2003 Budget. Additionally, $216,520 of previous TDA funding will be reallocated to the new TDA 2002/2003 project. The budget modification will also authorize staff to expend these additional funds.

Public contact was made through posting of the Council agenda on the City's official notice bulletin board, posting of the agenda and report on the City's web page, and the availability of the report in the Library and the City Clerk's Office.

2. Do not take action at this time and forfeit the additional TDA funds for FY 2002/2003.

Staff recommends Alternative #1.

Prepared by:

Dieckmann Wolfe

Transportation Planner

Reviewed by: 

Jack Witthaus

Traffic and Transportation Manager

Marvin A. Rose

Director of Public Works

Mary J. Bradley

Director of Finance

Approved by:

Robert S. LaSala

City Manager