August 10, 2004

SUBJECT:  Authorization for City Manager to Execute Cooperative Funding Agreement for the Frances Street Transit Corridor Project and Budget Modification No. 2

REPORT IN BRIEF

The City of Sunnyvale has worked in collaboration with the Valley Transportation Authority (VTA) to obtain Federal Transit Administration (FTA) funds for the Frances Street Transit Corridor Project. VTA is eligible to receive FTA funds on behalf of the City, and at the request of the VTA, the Metropolitan Transportation Commission (MTC) has programmed $178,000 in FY 2004 FTA Transit Enhancements grant funds for this project.  Staff recommends that Council authorize the City Manager to execute the Cooperative Funding Agreement between the City and VTA for the disbursement of the FTA funds.   

The Frances Street Transit Corridor Project currently has a total budget of $758,700, funded by a Transportation Fund for Clean Air (TFCA) grant in the amount of $429,000 and City matching funds in the amount of $329,700.  Staff recommends Council approve Budget Modification No. 2 to accept the FTA grant, appropriate the funds to the Frances Street Transit Corridor Improvements project, and reduce the City matching funds to $151,700.  The net savings of $178,000 in City matching funds would be returned to the Regional Mitigation Reserves. The total budget for the project would remain unchanged at $758,700.

BACKGROUND

The Frances Street Transit Corridor project was approved by Council on April 6, 2004 with a total budget of $758,700 (RTC 04-129).   The project is currently funded by a Transportation Fund for Clean Air (TFCA) grant in the amount of $429,000 and $329,700 in City matching funds.  The City’s matching funds are funded by the Regional Mitigation Reserve of the Capital Projects Fund/Traffic Mitigation Sub-Fund. The Regional Mitigation Reserve 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.

In the April 2004 report, staff noted that the City matching funds will be reduced by the addition of FTA grant funds, which was expected to be awarded in October 2004, pending the development and execution of a grant funding agreement.   FTA grant funds are appropriated by the U.S. Congress through the enactment of the annual U.S. Department of Transportation Appropriations Act. These funds are administered locally by the Metropolitan Transportation Commission (MTC). At the request of the VTA, an eligible grantee for FTA funds, MTC has programmed $178,000 in FTA funds for the Frances Street Transit Corridor Project.

EXISTING POLICY

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

The Frances Street Transit Corridor Project was developed in response to community input gathered through the development of the Sunnyvale Downtown Urban Design Plan and the Sunnyvale Downtown Plaza project. The project includes the installation of transit enhancement improvements at the Sunnyvale Transit Center located on Frances Street between Capella Way/Town and Country Way and Evelyn Avenue. This project will create a pedestrian scale transit corridor that connects pedestrians and transit riders from seven VTA bus routes to the Caltrain Multimodal Station, Downtown Commercial Center, Town Center Mall, Mozart office buildings, and the new City Plaza. The transit improvements include an altered street configuration, sidewalk improvements, bus shelters, bicycle facilities, pedestrian-scaled street lighting, pedestrian amenities, enhanced landscaping, enhanced crosswalks, and a VTA bus drivers’ restroom.

City staff, including the Senior Assistant City Attorney have worked with the VTA to develop a Cooperative Funding Agreement for the disbursement of the FTA funds.  The VTA Board will review the Cooperative Funding Agreement for the Frances Street Transit Corridor Project at their August 5, 2004 meeting.  A copy of the Cooperative Funding Agreement is provided in Attachment A.  Staff recommends that Council authorize the City Manager to execute the Cooperative Funding Agreement between the City and the VTA for the Frances Street Transit Corridor Project.

Environmental Review

This project is categorically exempt under the California Environmental Quality Act (CEQA) and categorically excluded under the National Environmental Quality Act (NEPA). Construction impacts will be mitigated through the City’s Operating Procedures and Design Standards.

FISCAL IMPACT

The Frances Street Transit Corridor Project currently has a total budget of $758,700, funded by a Transportation Fund for Clean Air (TFCA) grant in the amount of $429,000 and City matching funds in the amount of $329,700.  Staff recommends Council approve Budget Modification No. 2 to accept the FTA grant, appropriate the funds to the Frances Street Transit Corridor Improvements project, and reduce the City matching funds to $151,700.  The net savings of $178,000 in City matching funds would be returned to the Regional Mitigation Reserves. The total budget for the project would remain unchanged at $758,700.

BUDGET MODIFICATION NO. 2 FISCAL YEAR 2004/2005
	Current		Increase (Decrease)		Revised
Capital Projects Fund / Traffic Mitigation Sub-Fund
Revenues:
Federal Transit Administration Grant (FTA)	$            0		$178,000		$178,000
Reserves:
City matching funds - Frances Street Transit Corridor Project	$329,700		($178,000)		$151,700
Regional Mitigation Reserves	$525,513		$178,000		$703,513

 

PUBLIC CONTACT

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.

ALTERNATIVES

1.    Authorize the City Manager to execute the Cooperative Funding Agreement for the Frances Street Transit Corridor Project, and approve Budget Modification No. 2 to accept the grant funding, appropriate it to the Frances Street Transit Corridor Project and reduce the City matching funds to $151,700. 

2.      Do not take action at this time and forfeit the FY 2004 FTA Transit Enhancement grant funds.

RECOMMENDATION

Staff recommends Alternative 1: Authorize the City Manager to execute the Cooperative Funding Agreement for the Frances Street Transit Corridor Project, and approve Budget Modification No. 2 to accept the grant funding, appropriate it to the Frances Street Transit Corridor Project and reduce the City matching funds to $151,700. 

Prepared by: