April 6, 2004
SUBJECT: Acceptance of the FY 2003/2004 Transportation Fund for Clean Air (TFCA) Grant Funds and Budget Modification No. 33
REPORT IN BRIEF
The City has received grant funding for three projects from the Bay Area Air Quality Management District (BAAQMD) Transportation Fund for Clean Air (TFCA). These projects include funds for the Battery Back-up system for Sunnyvale traffic signals ($27,500), construction of a Wolfe Road Bike Route from Maria Lane to Homestead Road ($41,900), and the Frances Street Transit Corridor Improvements ($429,000). Staff recommends Council accept the BAAQMD grant awards and appropriate the funds to these three projects. It should be noted that Council Member Julia Miller is a member of the BAAQMD Board of Directors.
The Battery Back-up project has been partially funded by a grant from the California Energy Commission (CEC). The CEC grant required City matching funds in the amount of $75,100, for which the City has previously budgeted with the use of gas tax funds. The TFCA grant in the amount of $27,500 will be used to reduce the amount of City funding for this project to $47,600. This will allow $27,500 in gas tax funds to be returned to the Gas Tax Fund 20 year reserve.
The Wolfe Road Bike Route project will be completely funded by the TFCA grant in the amount of $41,900. There is no fiscal impact to the City associated with this project.
The total budget for the Frances Street Transit Corridor Improvements project is $758,700, which will be funded by the TFCA grant in the amount of $429,000 and City matching funds in the amount of $329,700. The City’s portion of the matching funds are available in the Regional Mitigation Reserve of the Capital Projects Fund/Traffic Mitigation Sub-Fund. This project will be undertaken in partnership with the Santa Clara Valley Transportation Authority (VTA). Staff is currently working with the VTA to develop a funding agreement for which Federal Transit Authority (FTA) funding would cover approximately 54% or $177,960 of the City matching funds, while the City would pay the remaining portion of the matching funds in the amount of $151,740. The VTA Board of Directors has authorized the filing of FTA Section 5307 Urbanized Area Formula Grant Program funds for this project, and a signed funding agreement is expected by October 2004. Once this funding agreement is signed, staff will come back to Council with a budget modification request to reduce the City matching funds from $329,700 to $151,740, accept the FTA funding and appropriate it into the Frances Street Transit Corridor Improvements project.
BACKGROUND
The TFCA provides grants to local governments for projects that will reduce air pollution. The BAAQMD, of which Council Member Miller is a member, administers the grant program in the San Francisco Bay Area.
The TFCA is a 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.
TFCA provides grants to local governments for projects that will reduce air pollution. BAAQMD administers the grant program in the San Francisco Bay Area. Sixty percent of the annually available funds are administered by the BAAQMD, while 40% return to Bay Area counties. The grants discussed in this report are from the 60% fund administered by the BAAQMD. Grants are available for various types of projects, including:
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Design of physical improvements that support smart-growth.
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Implementation of bicycle facility improvement projects.
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Implementation and maintenance of local arterial traffic management.
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Implementation of low emission and zero-emission vehicle projects.
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Implementation of ridesharing programs.
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The purchase or lease of clean fuel buses for school districts and transit operators.
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The provision of local feeder bus or shuttle service to rail and ferry stations and to airports.
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Implementation of rail-bus integration and regional transit information systems.
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Demonstration projects in telecommuting and congestion pricing.
EXISTING POLICY
Air quality Sub-Element – Goal A: Improve Sunnyvale’s Air Quality and reduce the exposure of its citizens to air pollutants.
Land Use and Transportation Element C3.3 – Optimize city traffic signal system performance.
Land Use and Transportation Element C3.5.4 - Maximize the provision of bicycle and pedestrian facilities.
Land Use and Transportation Element C3.5.8 – Work to improve bus service within the City, including linkages to rail.
Fiscal Sub-Element 7.1B.4d – Pursue and use intergovernmental assistance for projects in the Ten-Year Capital Improvement Plan.
DISCUSSION
At its July 15, 2003 meeting, the City Council authorized staff to submit applications for grant funding from the FY 2003/2004 TFCA Regional Funds for five projects, including the three projects discussed in this report. At this meeting, City Council also authorized the City Manager to execute funding agreements for any approved grant applications.
On December 9, 2003, the BAAQMD awarded funds for the construction of a Wolfe Road Bike Route from Maria Lane to Homestead Road ($41,900), and the Frances Street Transit Corridor Improvements ($429,000). On January 8, 2004, the BAAQMD awarded funds for the Battery Back-up system for City of Sunnyvale traffic signals ($27,500). The City Attorney and City Manager have reviewed and approved the funding agreements for the three projects.
Staff recommends Council accept the BAAQMD grant awards and appropriate the funds into these projects. The Battery Back-up project has been partially funded by a grant from the California Energy Commission (CEC). The CEC grant required City matching funds in the amount of $75,100, for which the City has previously budgeted with the use of gas tax funds. The TFCA grant in the amount of $27,500 will be used to reduce the amount of City funding for this project to $47,600. This will allow $27,500 in gas tax funds be returned to the Gas Tax Fund 20 year reserve.
The Wolfe Road Bike Route project will be completely funded by the TFCA grant in the amount of $41,900. There is no fiscal impact to the City associated with accepting the grant funding for this project.
The total budget for the Frances Street Transit Corridor Improvements project is $758,700, which will be funded by the TFCA grant in the amount of $429,000 and City matching funds in the amount of $329,700. The City’s portion of the matching funds are available in the Regional Mitigation Reserve of the Capital Projects Fund/Traffic Mitigation Sub-Fund. This project will be undertaken in partnership with the Santa Clara Valley Transportation Authority (VTA). Staff is currently working with the VTA to develop a funding agreement for which Federal Transit Authority (FTA) funding would cover approximately 54% or $177,960 of the City matching funds, while the City would pay the remaining portion of the matching funds in the amount of $151,740. The VTA Board of Directors has authorized the filing of FTA Section 5307 Urbanized Area Formula Grant Program funds for this project, and a signed funding agreement is expected by October 2004. Once this funding agreement is signed, staff will come back to Council with a budget modification request to reduce the City matching funds from $329,700 to $151,740, accept the FTA funding and appropriate it into the Frances Street Transit Corridor Improvements project.
FISCAL IMPACT
Staff recommends Council approve Budget Modification No. 33 to accept the BAAQMD grant awards and appropriate the funds into the Battery Back-up system project ($27,500), Wolfe Road Bike Route from Maria Lane to Homestead Road project ($41,900), and the Frances Street Transit Corridor Improvements project ($429,000). $27,500 of the gas tax funds that were previously appropriated into the Battery Backup system project will be returned to the Gas Tax Fund 20 year reserve.
The total budget for the Frances Street Transit Corridor Improvements project is $758,700, which will be funded by the TFCA grant in the amount of $429,000 and City and VTA matching funds in the amount of $329,700. The original grant application to the BAAQMD requested 100% funding for this project. However, the BAAQMD only met a portion of the total project cost, leaving a $329,700 local match amount. The City’s portion of the matching funds are available in the Regional Mitigation Reserve of the Capital Projects Fund/Traffic Mitigation Sub-Fund. This fund is designated for projects that mitigate transportation impacts to the regional transportation system consistent with the Congestion Management Program requirements. The Frances Street Transit Corridor Improvements project is in a VTA-designated core transit development area, and is therefore considered a suitable mitigation. At this time, $329,700 from this Reserve is designated for this project. This amount will be reduced by FTA funds in the amount of $177,960, which will be available later this year. Staff will return to Council with a budget modification request to reduce the City matching funds from $329,700 to $151,740 upon the completion of a signed funding agreement, expected by October 2004.
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Current |
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Increase/
(Decrease) |
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Revised |
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Capital Projects Fund / Gas Tax Sub-Fund |
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$0 |
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$27,500 |
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$27,500 |
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Gas Tax Fund |
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Reserves: |
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20 Year RAP |
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$1,935,512 |
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$27,500 |
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$ 1,963,012 |
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Capital Projects Fund / General Fund Assets Sub-Fund |
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$0 |
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$ 41,900 |
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$ 41,900 |
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Expenditures: |
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$0 |
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$ 41,900 |
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$ 41,900 |
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