May 18, 2004
SUBJECT: Mary Avenue Overcrossing Project Cooperative Agreement for Cost Sharing and Budget Modification No. 40
REPORT IN BRIEF
Attached (Attachment A) is a draft Cost Sharing Agreement between the City of Cupertino and the City of Sunnyvale for a Mary Avenue Bicycle and Pedestrian Overcrossing Project. This project will construct a new bicycle and pedestrian overcrossing of Highway 280 between Mary Avenue in Cupertino and an area just west of Homestead High School, roughly in alignment with Mary Avenue in Sunnyvale. This project is entirely within the City of Cupertino, but the City of Sunnyvale has responded to a request from Cupertino for cost sharing and acknowledged certain benefits to Sunnyvale residents and the greater west Santa Clara Valley area. The Sunnyvale City Council has budgeted $ 110,000 in Gas Tax funds as a fair share contribution towards design and construction of the bridge. The attached agreement and Budget Modification will allow the transfer of time restricted Sunnyvale Measure B and Transportation Development Act funds, instead of Gas Tax monies, to the City of Cupertino for use in developing the project.
Background
The City of Cupertino is pursuing a project to construct a new bicycle and pedestrian overcrossing of Highway 280 to connect Mary Avenue in Cupertino and Sunnyvale. Cupertino has secured funding from a number of sources via the Santa Clara Valley Transportation Authority Bicycle Expenditure Program, State earmarks, and local funding. In early 2003, the Sunnyvale City Council considered a request by the Mayor of Cupertino for participation by Sunnyvale in the cost of the project (Attachment B). Subsequently, the Sunnyvale City Council appropriated $ 110,000 in Gas Tax monies as a fair share contribution to the Mary Avenue Route 280 Bicycle Footbridge project.
Discussion
Sunnyvale and Cupertino staffs are working cooperatively to move the project forward. At this time, Sunnyvale’s Measure B funding allocation is nearing expiration. Also, the City’s entitlement of Transportation Development Act (TDA) funds for 2004, which is earmarked for bicycle and pedestrian projects, has been announced by the Metropolitan Transportation Commission. The Mary Avenue Overcrossing Project is eligible for expenditures from these two specialized funding sources. Use of this funding will free up Gas Tax funds for other eligible City expenditures.
Cupertino has developed a detailed project concept and has initiated design of the project. Cupertino staff indicate that a contribution from Sunnyvale at this time will fit within the expenditure plan for the project. The attached cost sharing agreement (Attachment A) specifies financial responsibilities of Sunnyvale and reimbursement procedures.
Two sources of funding are proposed to be used for the contribution. The City’s Measure B fund allocation would provide $ 65,695 in funding, with the remainder to come from the City’s current Transportation Development Act funds. Measure B funding will expire July 31, 2004 and revert back to the Santa Clara Valley Transportation Authority unless expended. This action will commit and expend the remainder of the City’s Measure B allocation. The agreement specifies that Cupertino shall invoice Sunnyvale immediately for these funds, and Sunnyvale would transfer the $ 65,695 prior to June 30, 2004. The Transportation Development Act funds are an annual allocation to local jurisdictions of State sales tax funds. These are earmarked for use on bicycle and pedestrian projects only. The City’s annual allocation is typically around $ 80,000. The current allocation amount was recently announced by the Metropolitan Transportation Commission. Upon release of the fund estimate, cities identify which eligible projects they elect to expend the funds on, which is then processed by the Santa Clara Valley Transportation Authority and the Metropolitan Transportation Commission, and cities can draw down funds as they are expended over a three year period. For this year’s Sunnyvale allocation, staff proposes to identify $ 44,305 for use (and direct draw down) by Cupertino for the Mary Avenue Route 280 Bicycle Footbridge project.
The Bicycle and Pedestrian Advisory Committee has reviewed and approved the proposed TDA allocation and supports the financial contribution to the City of Cupertino for the project. Staff is recommending approval of the attached agreement and budget modification.
Fiscal Impact
The FY 2003/2004 Adopted Budget for Mary Avenue Route 280 Bicycle Footbridge project is $110,000, funded by Gas Tax monies. This budget modification would allow $110,000 in Gas Tax monies to be returned to the Gas Tax 20 Year Resource Allocation Plan reserve, appropriate $65,695 of the remaining unallocated Measure B funds, and appropriate $44,305 of TDA funding to the Mary Avenue Route 280 Bicycle Footbridge project. Measure B funds must be expended by July 31, 2004, or be rescinded from the City.
With this budget modification, the budget for Mary Avenue Route 280 Bicycle Footbridge project would remain at $110,000. However, the funding source for the project would change from Gas Tax to Measure B and TDA funds.
BUDGET MODIFICATION NO. 40
FISCAL YEAR 2003/2004
|
|
Current |
|
Increase
(Decrease) |
|
Revised |
|
Capital Projects Fund
Project 823680 Mary Avenue Route 280 Bicycle Footbridge |
|
Revenues |
|
|
|
|
|
|
Transportation Development Act |
$ 0 |
|
$44,305 |
|
$44,305 |
|
Measure B |
$ 0 |
|
$65,695 |
|
$65,695 |
|
|
|
|
|
|
|
|
Reserves: |
|
|
|
|
|
|
Measure B Capital Reserve |
$65,695 |
|
($65,695) |
|
$0 |
|
|
|
|
|
|
|
|
Gas Tax Fund 20 Year RAP |
$1,963,012 |
|
$110,000 |
|
$2,073,012
|
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 Cost Sharing Agreement Between the City of Cupertino and the City of Sunnyvale for the Mary Avenue Overcrossing Project and approve Budget Modification No. 40.
2. Direct staff to develop an alternative method for executing a financial contribution for the Mary Avenue Overcrossing Project.
3. Do not take action at this time.
RECOMMENDATION
Staff recommends Alternative 1.
Prepared by:
Jack Witthaus
Transportation/Traffic Manager
Reviewed by:
Marvin A. Rose
Director of Public Works
Mary Bradley
Director of Finance
Approved by:
Amy Chan
City Manager
Attachments
A. Cost Sharing Agreement Between the City of Cupertino and the City of Sunnyvale for the Mary Avenue Overcrossing Project
B. Letter from City of Cupertino pdf.file