August 10, 2004
SUBJECT: Transportation for Livable Communities Grant Program – Authorization to Submit Grant Applications
REPORT IN BRIEF
This report recommends that the City Council authorize staff to submit grant applications for Federal and/or local grant funds through the Metropolitan Transportation Commission (MTC) Transportation for Livable Communities (TLC) Program. Staff has identified four candidate projects for the Program, two Capital and two planning. This Program seeks to fund community based projects to enhance the livability of transit and pedestrian-oriented districts, of which downtown Sunnyvale is a prime candidate. The Capital program requires an 11.5% local match and the Planning program requires a 20% match of the grant request. Budgeting of necessary funds for this project would be carried out at such time that a grant is approved.
BACKGROUND
The purpose of the MTC TLC Program is to support community-based transportation projects that bring new vibrancy to downtown areas, commercial cores, neighborhoods, and transit corridors, enhancing their amenities and ambiance and making them places where people want to live, work and visit. TLC provides funding for projects that are developed through an inclusive community planning effort, provide for a range of transportation choices, and support connectivity between transportation investments and land uses.
This year $18 million is available region wide for Capital grants, and another $500,000 is available for Planning projects. These funds are allocated on a competitive basis, through a rigorous written application. Local agencies must submit an application for candidate projects for this special program to MTC. Projects will be screened for compliance with eligibility criteria, which emphasize community-based planning, transportation-land use linkages, and transportation choices. A panel chosen by MTC prioritizes the submitted projects and then submits their list of recommended projects to the Metropolitan Transportation Commission (MTC) for approval. It is anticipated that the draft Program will be approved in December 2004. MTC approves the projects with instruction to secure Federal expenditure obligation by June 2006 and implement the projects within three years of the funding year. The City implements the approved projects and then submits paperwork to Caltrans District 4 to be refunded for the money expended.
EXISTING POLICY
The following documents contain policy direction on this issue:
Land Use and Transportation Element R1.3, Promote integrated and coordinated local land use and transportation planning.
Fiscal Sub-Element 7.B.4c, Utilize a uniform grants application process to assure that the City Council has the information necessary to make a decision regarding a potential intergovernmental grant. Staff should present to Council a notice of intent regarding a possible grant source which shall include at least the following information:
1. The grant being pursued and the use to which it would be placed.
2. The objectives or goals of the City which will be achieved through use of the grant.
3. The local match required, if any, plus the source of the local match.
4. The increased cost to be locally funded upon termination of the grant.
5. The ability of the City to administer the grant.
Fiscal Sub-Element 7.1B.4d; Pursue and use intergovernmental assistance for projects in the Ten-Year Capital Improvement Plan.
DISCUSSION
Per City policy, staff is requesting Council approval of submittal for grant funds. Four (4) eligible grant projects have been identified as follows:
1. Downtown Plaza Phase II Improvements - $1,138,463 (local match $ 130,923)
2. Downtown Wayfinding Sign Program - $850,000 (local match $97,750)
3. Downtown Neighborhood Gateways Planning - $60,000 (local match $10,000)
4. Murphy Street Streetscape Revitalization Planning $ 90,000 (local match $15,000)
A recommendation on the specific source of local matching funds would be made at such time that a grant or grants was approved, but it is likely that staff would recommend Regional development mitigation funds as a local match source. Should the Council approve submittal of a grant application and a grant were awarded, these funds would be budgeted as part of the FY 05/06 Capital budget development process. This grant will be administered through existing Public Works operating budgets.
Operating Costs
Additional operating costs can be anticipated upon completion of a Plaza Phase II Project or a Wayfinding Sign Project. Fountains and public restrooms will increase annual operating costs to the Department of Parks and Recreation by an estimated $34,000 per year. These operating costs were first presented to Council on March 18, 2003 (RTC# 03-094). Specialized “art” signs and banners will have replacement costs that are significantly higher than standard signs, and will need to be outsourced for repair/replacement. Assuming a seven year replacement schedule and given the highly customized nature of these signs, staff estimates that maintenance and replacement costs would be approximately $ 4,800 per year. Staff will review these estimated operating costs and provide updated information for City Council once the grant amount is approved and the project scope is finalized.
FISCAL IMPACT
Should one or more of the TLC grant applications be approved, the City could incur a positive fiscal impact in the form of unanticipated revenue ranging from $50,000 to over $1.85 million, with local match requirements ranging from $10,000 to $250,000. Staff would return to Council for consideration of acceptance of any grant and budgeting of matching funds at the time of grant approval. The MTC also requires approval of a resolution of support and financial commitment at the time of grant approval. Should grant funding be awarded, sufficient funds exist in the Regional development mitigation fund, to provide local matching funds.
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 staff to apply for Transportation for Livable Communities Funds for various downtown transportation and land use enhancement projects. This funding requires a local match of either 11.5% or 20%, depending upon the project category.
2. Do not take action at this time and forfeit the opportunity to compete for Transportation for Livable Communities funds.