April 6, 2004

SUBJECT: Recommendation for Valley Transportation Plan 2030 Program Allocations and Project Priorities

REPORT IN BRIEF

The Santa Clara Valley Transportation Authority (VTA) is updating the major planning and funding programs of the long range Valley Transportation Plan (VTP) 2030 document.  This document identifies major regional transportation programs and projects for Santa Clara County, and presents priorities for Federal and State transportation funding against funding constraints.  VTP 2030 priorities will be considered as Santa Clara County’s submittal for the Bay Area’s Regional Transportation Plan.  Inclusion of projects in the Regional Transportation Plan is essential for eligibility for major Federal, State and other outside funding, as well as for air quality conformity testing.  

The VTA has developed initial recommendations for project priorities.  Staff is requesting that the City Council consider the VTA’s draft priorities and send correspondence to the VTA affirming Sunnyvale’s VTP 2030 priorities. 

BACKGROUND

The VTA is updating the major planning and funding programs of the long range Valley Transportation Plan (VTP) 2030 document.  This document identifies major regional transportation programs and projects for Santa Clara County, and presents priorities for Federal and State transportation funding against funding constraints.  Concurrently, the Metropolitan Transportation Commission is developing the Regional Transportation Plan for the nine-county Bay Area, called Transportation 2030.  Projects and programs from the Santa Clara County VTP 2030 Plan will be submitted to MTC for inclusion in the Regional Transportation Plan.  Any project with regional significance must be in the regional transportation plan to be eligible for federal or state funding, or to meet air quality conformance tests.    

The VTA, through a series of workshops, project solicitations, evaluations, and public outreach meetings, has developed a set of programs and projects for VTP

2030.  Included in this set are Sunnyvale priorities for the Local Streets program, which were approved by Council at its September 30, 2003 meeting; freeway projects consistent with the joint VTA/City SR 237 and Highway 85 Corridor Studies, of which Council previewed at a Study Session held on December 16, 2003; priorities for County Expressway improvements in Sunnyvale, as endorsed by the City Council at its May 13, 2003 meeting; and Bicycle Program projects approved for submittal by Council at its August 13, 2002 meeting.  Staff has also provided information to the VTA on soundwall, Intelligent Transportation Systems and Livable Community projects for Sunnyvale.

The VTA has assessed the “universe” of projects it has received for consideration in a broad range of project categories.  Potential projects have been prioritized using program-specific criteria.  Investment targets for Santa Clara County for the 25 year plan horizon (and the 30 year horizon for the Measure A “BART” tax) have then been applied to the project priorities to develop lists of “constrained” projects (within projected funding targets) and “unconstrained” projects (all project needs, regardless of funding).  These draft priorities as presented to the VTA Board of Directors at its March 19, 2004 meeting, are included by Program as Attachment A.  Projects in the constrained category are more likely to receive outside (Federal or State) funding in the lifetime of the Plan.

The Valley Transportation Authority Board of Directors is anticipated to act on this list at its April 23, 2004 workshop meeting.  Council Member Fred Fowler is on the Board of Directors, and Vice-Mayor Dean Chu is on the VTA Policy Advisory Committee.

EXISTING POLICY

Land Use and Transportation Element Policy C3.7, Pursue local, state and federal transportation funding sources to finance City transportation capital improvement projects consistent with City priorities.

Land Use and Transportation Element Action Statement C3.7.1, Develop alternatives and recommendations for funding mechanisms to finance the planned transportation system.

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

DISCUSSION

The VTA Board is scheduled to act to consider the VTP 2030 Program Allocations and Project Priorities at its April 23 meeting.  Issues for Sunnyvale to consider prior to Board consideration include:

• Listing of Sunnyvale projects as constrained or unconstrained
• Prioritization of transit improvements for North County/Caltrain
• Support of freeway corridor priorities 

Local Streets And Roads Program – Listing of Projects as Constrained or Unconstrained

The Local Streets and County Roads Program of VTP 2030 is the primary outside funding category for municipal roadway and intersection improvements.  Listing in the Program is critical to receiving most major Federal and State transportation funding.

In response to a call for projects in September, 2003, the City submitted anticipated major project priorities, according to adopted and pending City plans and programs (Attachment B) and made a commitment to provide future local matching funds as outside funding becomes available.  This list was developed by referencing the City Resource Allocation Plan and approved plans and programs.  Per City policy, the assumption was made that intergovernmental assistance (outside funding) should be pursued for all projects regardless of current budget or funding status, e.g. outside funding should be pursued to replace or augment any City funding.  Under this scenario, all projects from the Transportation Strategic Program were submitted, as well as the Mathilda Bridge Rehabilitation Project, which is 80% federal funded, 20% City funded, and the Mathilda/Washington Intersection Improvement Project, which is assumed to be greater than 80% developer funded.   

These projects were then ranked against all other projects submitted by Santa Clara County jurisdictions.  Four Sunnyvale projects are ranked in the “constrained” list.  These are as follows:

1. Mathilda/237 Corridor Improvements
2. Mathilda Bridge Rehabilitation
3. Lawrence/Wildwood Roadway Re-alignment and Traffic Signal
4. Java Drive Bicycle Improvements

These projects were among 55 projects out of 109 submitted Countywide that scored highly using a broad ranging criteria including connectivity, funding, congestion relief, safety, transportation/land use integration, and geographic equity. 

At this time, VTA staff indicate that local agencies can propose to supplant projects on the constrained list by identifying local funding for high ranking projects, and moving up projects that are below the constrained funding line.  In essence, the City can leverage funds it has already budgeted or programmed to have additional projects included in the VTP 2030 Plan.  Under this scenario, the City may choose, without budgetary impact to the City, to acknowledge local funds already allocated to projects that are on the constrained list, and “move up” projects that do not have identified local funding.  Two of the City’s projects on the constrained list have funds already allocated or budgeted for the City’s share -- the Mathilda Bridge Rehabilitation Project (City Gas Tax Funds) and the Java Drive Bicycle project (Transportation Strategic Program funds). 

Should the City elect to “move projects up” by assuming local funding and effectually withdrawing the request for VTP 2030 outside funding, then a project or projects below the line can be moved up.  The City has eleven projects below the constrained line, eight of which are Transportation Strategic Program projects, one that is currently 100% funded through developer and City funds, and two of which are unfunded, the Downtown Sunnyvale Mathilda Boulevard Improvements, and a Citywide Traffic Calming Project.  Should the City assume the local cost of the Mathilda Bridge Rehabilitation Project and the Java Drive project (as currently budgeted/programmed), then this creates additional programming capacity for Sunnyvale projects below the line.  This is sufficient to fund the two unfunded Sunnyvale projects. 

Should the City elect not to advance projects from the unconstrained list by leveraging previously budgeted or allocated funds, the effect would be to realize potential matching funds for the Mathilda Bridge Rehabilitation Project in the amount of $3.5 million, and realize 80% funding for a Java Drive Bicycle improvement in the amount of $300,000.  In theory, this would allow outside funding to replace the currently budgeted $3.5. million in City funds for the Mathilda Bridge project, and would reduce the required funding for the TSP by $300,000, which would marginally lower transportation impact fee levels.

In practical terms, however, it may be unlikely that outside local match funding will become available for the Mathilda Bridge Project within the timeframe of the project.  This project is currently beginning design, and construction will occur within the next five years.   Local matching funds would need to come from a State source, as Federal funds are already allocated to the project.  Additional State STIP programming for Santa Clara County beyond what is currently programmed is unlikely to occur before 2009.  Therefore, the City may need to expend City funds to keep the Mathilda Bridge project moving forward in a timely fashion regardless.       

The VTA desires to recognize and reward local agencies who dedicate local funds and create new local funding sources, by awarding programming capacity.  Sunnyvale’s transportation capital program dedicates significant local funds, and the adoption of the Transportation Strategic Program constitutes the creation of a significant new local funding source.  Staff recommends that the City Council request that Sunnyvale’s local funding efforts be recognized in the VTP 2030 by programming all projects as currently budgeted or programmed by the City as constrained projects, and that the City’s unfunded Local Streets priorities be moved to the constrained list.  Specifically, staff recommends that the City Council request VTP 2030 programming of City projects as shown in Table 1:

Table 1:  Recommended Programming Strategy for Sunnyvale VTP 2030 Projects

The Transportation Strategic Program also programs $35 million for Lawrence Expressway improvements.  Staff recommends that the Council request that this programming be recognized in VTP 2030 as local matching funds for Lawrence Expressway grade separation improvements in Sunnyvale.  This will enable Lawrence Expressway grade separation projects to be listed as unconstrained projects, and therefore be eligible for Federal and State funding as funds become available.

Prioritization of Transit Improvements for North County/Caltrain

At the March 16, 2004 meeting, the City Council took action to support a letter to the Chair of the Board of Directors of the VTA regarding project priorities in the VTP 2030 Transit Program (Attachment C).  The fundamental argument was that transit project funding for the 25 year RTP was focused solely on extending BART to San Jose and completing the Downtown-East Valley light rail, with no investment in the North or South County.  In response, the VTA has modified the proposed transit project priorities somewhat by including all Measure A projects in the constrained category, regardless of funding year.  This has the effect of recognizing North and South County investment over the life of Measure A, although it does not clarify when that investment would be made and may in fact not change the timing of funding of any North County projects.

The City Council may want to reiterate its support for North County transit improvements as a high priority, and request that priority and allocation amounts be listed accordingly.