April 5, 2005
SUBJECT: Reveiw Valley Transportation Authority Long-term Transit Captial Investment Program
REPORT IN BRIEF
The Sunnyvale City Council has considered a number of issues over the past two years regarding long range planning for Santa Clara County by the Valley Transportation Authority (VTA), including most recently the Valley Transportation Plan (VTP) 2030 comprehensive long range plan. An offshoot of this Plan, the Long –Term Transit Capital Investment Program, has been under development by the VTA Board over approximately the last year. This Program matches planned and voter-approved projects with funding resources over a 30 year time frame. The predominant issue is the need for a major new revenue source to provide sufficient funds to build and operate previously approved transit capital improvements. The draft Long-Term Capital Investment Program assumes that a ½ cent sales tax would be considered and approved by voters in 2006.
The draft Long –Term Transit Capital Investment Program will be considered by the VTA Board of Directors at an April 22, 2005 Workshop, and is anticipated to be acted upon in Summer, 2005. The VTA Board of Directors is requesting input from each city and the County on the Program.
The City Council has previously considered the VTA’s long term financial strategy in Study Session on December 14, 2004. Also, Council has considered other issues related to the Long-Term Transit Capital Investment Program, including, the County Expressway Study, Caltrain electrification, and transit project priorities. The Council has also specifically considered the issue of light rail expansion in Sunnyvale and adopted a Legislative Action Policy regarding light rail expansion priorities that has direct bearing on the Long-Term Transit Capital Investment Program.
At this time staff believes that the Long-Term Transit Capital Investment Program is inconsistent with City priorities. Staff recommends that the City Council oppose the Long-Term Transit Capital Investment Program until such time that Sunnyvale’s concerns regarding light rail expansion and a City/VTA 1993 Cooperative Agreement regarding light rail are addressed to the City’s satisfaction, and until a sustainable transit capital improvement program and funding strategy is developed that is significantly supported by a consensus of Santa Clara County cities and the County and by polling of Santa Clara County voters. Council may want to consider further direction to the City’s VTA representatives. Mayor Dean Chu is on the VTA Board of Directors, and Vice-Mayor Ron Swegles is on the Policy Advisory Committee.
BACKGROUND
The VTA’s long range planning processes and voter-approved transportation sales tax measures have identified a program of major transit capital improvements for Santa Clara County. Voter-approved project commitments, a significant reduction in anticipated sales tax and other revenues, and lack of an ongoing source of operating funds for transit expansion have resulted in an untenable long term program. As part of the VTP 2030 process, in Spring, 2004 the VTA Board considered overall long term funding allocations to the range of categories of transportation improvements such as highways, bicycles, and transit. Over the next several months, the VTA Board evaluated revenue projections for transit improvements and considered a range of funding and project timing scenarios focusing on new ¼ or ½ cent sales taxes for transportation. Sales taxes were determined to be the form of new revenue most promising for providing the necessary level of funding and securing approval.
At this time the VTA Board has identified a single option as the most promising for its Long-Term Transit Capital Investment Program (Attachment A). This option assumes a new ½ cent sales tax would be approved by voters in 2006, which would provide for sufficient funding for the entire program over a 30 year span as well as provide revenue to local jurisdictions for roadway maintenance and improvement projects.
The Sunnyvale City Council has considered a number of issues over the past two years that are relevant to this Program. The Program includes Caltrain Electrification, Future Light Rail Corridors, BART to San Jose and other transit capital project priorities. Council endorsed a letter from the North County Cities Group of the VTA supporting certain transit project priorities at its March 16, 2004 meeting, approved policy regarding Caltrain electrification at its May 11, 2004 meeting, and considered overall VTP 2030 priorities and specifically light rail improvement priorities at its April 6, 2004 meeting. The Council adopted a new Legislative Action Policy regarding future light rail extension to downtown Sunnyvale at its August 24, 2004 meeting. Council members also participated on a Policy Advisory Committee for the 2003 County Expressway Study which included a comprehensive evaluation of potential transportation funding sources, and polling of Santa Clara County voters that found significant support for expressway improvements.
The VTA Board is scheduled to consider the Draft Long-Term Transit Capital Investment Program and member agency input on the Program at an April 22, 2005 workshop. The Draft Program states that possible Board action is contemplated for Summer, 2005.
EXISTING POLICY
Land Use and Transportation Element R1, Protect and sustain a high quality of life in Sunnyvale by participating in coordinate land use and transportation planning in the region.
Land Use and Transportation Element R1.1, Advocate the City’s interests to regional agencies that make land use and transportation system decisions that affect Sunnyvale.
Land Use and Transportation Element R1.2, Support coordinated regional transportation system planning and improvements.
Land Use and Transportation Element R1.3.1, Participate in intergovernmental activities related to regional and sub-regional land use and transportation planning in order to advance the City’s interests.
Land Use and Transportation Element C3.7, Pursue local, state, and federal transportation funding sources to finance City transportation capital improvement projects consistent with City priorities.
Legislative Action Position 1.i.3, Seek local policy participation on regional rail projects and support efforts to bring light rail service to downtown Sunnyvale.
Legislative Action Position 1.i.5 Support upgrading Caltrain service to provide faster and more frequent service to Sunnyvale; support transportation policies and funding that would provide and improve connections between Light Rail, Caltrain and industrial neighborhoods.
Legislative Action Position 1.i.6 Support continued operation of the Santa Clara Valley Transportation Authority bus transit and paratransit service at service levels sustainable to meet the needs of transit dependent populations.
Legislative Action Position 1.i.17 Support identification and pursuit of limited term revenue sources for transit capital and operating purposes only after stabilization of revenue and service levels sustainable to meet the needs of transit dependent populations.
Legislative Action Position 1.i.19 Communicate to the VTA Board of Directors information on the 1993 Cooperative Agreement Concerning the Tasman Corridor Light Rail Project, and specify that the pending New Rail Corridors Study shall abide by the terms of the Agreement.
Legislative Action Position 1.i.20 Research and document compliance with the 1993 Cooperative Agreement concerning the Tasman Corridor Light Rail Project, and once documentation is reviewed and approved, file for alternative dispute resolution.
DISCUSSION
The Draft Long-Term Transit Capital Investment Program contains operating assistance, bonding costs, and a list of 14 general projects or project categories (assuming zero emission bus procurement and demonstration are one project, and other line item projects with multiple elements are single projects). These projects are as follows:
1. BART to San Jose - $ 5.3 billion
2. Downtown-East Valley Transit Improvement - $ 655 million
3. Bus Rapid Transit Corridors - $ 62 million
4. Caltrain Service Upgrades – $195 million
5. Caltrain South County Service Upgrades - $ 191 million
6. Caltrain Electrification - $ 903 million
7. New Rail Corridors Study - $ 1.3 million
8. New Light Rail Corridor I - $ 1.5 billion
9. New Light Rail Corridor II - $ 1.5 billion
10. BART/Light Rail to San Jose Airport Connector – 541 million
11. Highway 17 Express Bus Improvements – $2.5 million
12. Dumbarton Rail Corridor - $ 300 million
13. Palo Alto Intermodal Transit Center – $550 million
14. ACE Service Upgrades - $ 38 million
15. Zero Emission Bus Project - $ 154 million
These projects stem from the 2000 Measure A sales tax. Measure A made a commitment to deliver these projects, based on revenue projections at the time the Measure was proposed. The structural issue with the Program is that revenues will now fall far short of the anticipated capital cost due to the regional economic downtown, and operating costs for these projects were underbudgeted in the original measure (and have since been approved to be partially diverted for existing transit operations).
Under the ½ sales tax scenario put forward under the Draft Long-Term Transit Capital Investment Program, all projects would be funded by 2036, with a $ 2 billion surplus. The BART to San Jose project is the highest cost item, encompassing 28% of the Program. Some agencies have taken issue with the timing of the BART project and the resultant deferral of other projects, notably the Palo Alto Intermodal Transit Center (The Palo Alto City Council voted to oppose the ½ cent sales tax scenario at it’s March 21, 2005 meeting largely due to deferral of this project.) In April, 2004 Sunnyvale signed a letter from the North County cities to the VTA Board requesting greater priority for certain transit projects earlier in the Program. This has been accommodated to some extent, with Line 22 Bus Rapid Transit, Dumbarton Rail, and Caltrain improvements being advanced or coordinated with other agency commitments. Staff does not believe the timing of projects is necessarily a significant issue for Sunnyvale, as the current Draft Program responds in great part to the April, 2004 North Cities request.
The VTA Board of Directors has selected the approach to pursue full funding of the entire original list of Measure A projects after evaluating the impacts of scenarios that featured reduced or no new revenue. Under these alternatives, the BART to San Jose project would not be viable, although the rest of the Program would potentially be able to be delivered. A primary argument for maintaining the original list of projects is that the 2000 Measure A vote is a mandate of the voters to deliver all projects as promised. There is significant political will on the part of the City of San Jose and the Silicon Valley Leadership Group, among others, to maintain the Measure A 2000 Program.
However, the scope and deliverability of projects, and the fundamental structural funding deficit without a major new revenue source is a significant issue. The current approach holds firm the list of projects, although the original funding plan has failed. Major new, unassured influxes of revenue from not only the proposed ½ cent sales tax, but also federal, state and partner agency contributions are necessary for the BART to San Jose, Caltrain Electrification, Airport people mover and other projects. The Measure A funding plan approved by the electorate in 2000 is not the current proposal – financial conditions have changed significantly and dramatically to the point where additional unanticipated revenue exceeding $ 1 billion is necessary. Staff believes that this is reason alone to consider a major overhaul of the project list as an alternative to a new ½ cent sales tax.
Other issues supporting reconsideration of the project list include the uncertainty of the scope of some projects. Sunnyvale expressed significant concerns with the benefits of the Caltrain electrification project. The City also desires the inclusion or prioritization of grade separations prior to or as part of electrification, which at this time is not assured. Sunnyvale has ongoing concerns with the prioritization of new rail corridors, as discussed below. The appropriate technology for the Downtown-East Valley project is very much in question, with attendant (significant) cost ramifications.
City Legislative Action policy calls for identification and pursuit of limited term revenue sources for transit capital and operating purposes only after stabilization of revenue and service levels sustainable to meet the needs of transit dependent populations. Provision of basic services for the core ridership, and financial stabilization are priorities for the City. The current Draft Long-Term Transit Capital Investment Program increases services and advocates new revenue without the benefit of a comparable Program that allocates available resources to an achievable Program of projects. The VTA has approved a Market Segmentation Study that will be conducted this year that will provide valuable information for reconsideration of routes, service levels, and technologies for transit service countywide. VTA staff have also indicated that they will support investment of new rail corridors planning funds for a broader range of technologies and services that may provide better services at less cost, i.e. bus rapid transit in future rail corridors, shuttle feeders, and community bus systems. Staff believe that a comprehensive re-evaluation of existing and planned transit service should be conducted to develop a sustainable transit capital improvement program and funding strategy that is significantly supported by a consensus of Santa Clara County cities and the County and by polling of Santa Clara County voters.
Tasman Corridor Cooperative Agreement
The 1993 Cooperative Agreement addressed a number of issues stemming from the planning and design of the Tasman West Corridor light rail project. Also addressed were future light rail corridor priorities – the document includes a statement of priority corridors, placing Tasman-Sunnyvale after the Tasman, Vasona, Capitol, and Downtown Evergreen corridors in the Transit District’s priorities. This was ostensibly to address the “concession” of a Tasman West terminus to downtown Mountain View instead of Sunnyvale. The Agreement also includes language on what the District would do to uphold these priorities, and how disputes over the agreement would be resolved.
On August 13, 2004, the VTA staff presented to the VTA Board of Directors a list of VTA major project priorities, for immediate action as well as long term planning and inclusion in VTP 2030. This included a “New Rail Corridors Study” of potential future light rail corridors that is potentially inconsistent with the priorities previously established by the 1993 Cooperative Agreement. VTA staff, responding to an inquiry by the City’s VTA Board representative, gave indication that the VTA staff disagrees with key elements of a 1993 Cooperative Agreement between Sunnyvale and the VTA’s predecessor agency on light rail priorities. In light of this information Council took action at it’s August 24, 2003 meeting to take certain actions, including research and document compliance with the 1993 Cooperative Agreement through a study issue or non-routine project, consider filing for alternative dispute resolution and convey to the VTA Board membership information on the 1993 agreement and the City’s position on light rail to downtown Sunnyvale as it relates to regional light rail planning. A letter prepared by the Office of the City Attorney was sent on January 13, 2005 to the VTA’s General Manager and copied to the Board communicating the City’s position and requesting action within 14 days pursuant to the provisions of the 1993 Agreement. City staff believe that inclusion of the New Rail Corridors study in the VTP 2030 and the subsequent Long-Term Transit Capital Investment Program directly violates the City/VTA 1993 Cooperative Agreement. VTP 2030 was adopted including the New Rail Corridors Study without modification of the document to address Sunnyvale’s issues regarding future light rail transit priorities.
A meeting with VTA staff on March 22, 2005 pursuant to the terms of the 1993 Agreement yielded no acknowledgement of Sunnyvale’s position or proposals to address the City’s position. VTA staff indicate that they will advocate that pending studies, including the New Rail Corridors Study and a transit rider market segmentation study, be used to break down and significantly rebuild the transit service network and plan. However, VTA staff give no indication or commitment that the VTA/Sunnyvale agreement on priorities will have any bearing on the scope or outcome of the study, or that other line item projects in the Draft Long-Term Transit Capital Investment Program would be put on the table as part of a system reconfiguration or a re-vamping of transit priorities. This includes reconsideration of the type of technology or service in the Sunnyvale light rail corridor, which the City’s VTA representatives and City staff suggested as a compromise to VTA staff. Staff concludes that the VTA will not uphold the 1993 Agreement, and otherwise will not give any weight to Sunnyvale priorities in the New Rail Corridor Study or other transit capital planning exercise. Therefore, staff recommends that the City Council oppose the Draft Long-Term Transit Capital Investment Program as currently constituted until such time that Sunnyvale’s concerns regarding light rail expansion and a City/VTA 1993 Cooperative Agreement regarding light rail are addressed to the City’s satisfaction.
FISCAL IMPACT
There is no direct fiscal impact of the City taking a position on the VTA Draft Long-Term Transit Capital Investment Program. No funding would be directly allocated to Sunnyvale through a Draft Long-Term Transit Capital Investment Program.
CONCLUSION
The VTA has developed a Draft Long –Term Transit Capital Investment Program that matches planned and voter-approved projects with funding resources over a 30 year time frame. The predominant issue is the need for a major new revenue source to provide sufficient funds to build and operate previously approved transit capital improvements. The draft Long-Term Capital Investment Program assumes that a ½ cent sales tax would be considered and approved by voters in 2006. A deficit in excess of $ 1 billion would occur in the absence of a new revenue source. The VTA Board of Directors is requesting input from each city and the County on the Program.
The City Council has previously considered the VTA’s long term financial strategy in Study Session on December 14, 2004. Also, Council has considered other issues related to the Long-Term Transit Capital Investment Program, including, the County Expressway Study, Caltrain electrification, light rail expansion and transit project priorities that has direct bearing on the Long-Term Transit Capital Investment Program.
At this time staff believes that the Long-Term Transit Capital Investment Program is inconsistent with City priorities related to stabilization of transit revenue, provision of basic transit services, and specific capital project priorities. Staff recommends that the City Council oppose the Long-Term Transit Capital Investment Program until such time that Sunnyvale’s concerns regarding light rail expansion and a City/VTA 1993 Cooperative Agreement regarding light rail are addressed to the City’s satisfaction, and until a sustainable transit capital improvement program and funding strategy is developed that is significantly supported by a consensus of Santa Clara County cities and the County and by polling of Santa Clara County voters. Council may want to consider further direction to the City’s VTA representatives. Mayor Dean Chu is on the VTA Board of Directors, and Vice-Mayor Ron Swegles is on the Policy Advisory Committee.
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. Oppose adoption of the Long-Term Transit Capital Investment Program until such time that Sunnyvale’s concerns regarding light rail expansion and a City/VTA 1993 Cooperative Agreement regarding light rail are addressed to the City’s satisfaction, and until a sustainable transit capital improvement program and funding strategy is developed that is significantly supported by a consensus of Santa Clara County cities and the County and by polling of Santa Clara County voters.
2. Support adoption of the VTA Draft Long-Term Transit Capital Investment Program in it’s current form.
3. Consider modified positions or comments on VTA Draft Long-Term Transit Capital Investment Program issues.
RECOMMENDATION
Staff recommends Alternative 1: Oppose adoption of the Long-Term Transit Capital Investment Program until such time that Sunnyvale’s concerns regarding light rail expansion and a City/VTA 1993 Cooperative Agreement regarding light rail are addressed to the City’s satisfaction, and until a sustainable transit capital improvement program and funding strategy is developed that is significantly supported by a consensus of Santa Clara County cities and the County and by polling of Santa Clara County voters.
Approved by:
Marvin A. Rose,Director of Public Works
Prepared by: Jack Witthaus, Transportation and Traffic Manager
Approved by:
Amy Chan
City Manager
Attachments:
A. Draft VTA Long-Term Transit Capital Investment Program (.pdf format)