July 12, 2005
SUBJECT: Federal Surface Transportation Program Funds for Local Streets and Roads Rehabilitation Project – Authorization to Submit Grant Application and Resolution of Support
REPORT IN BRIEF
This report recommends that the City Council authorize staff to submit a grant application for Federal grant funds allocated to the City for roadway rehabilitation. Assuming that a candidate project meets the project screening criteria, an allocation of $493,620 will be granted to the City through a VTA-approved program. Staff has identified a new eligible project, Mary Avenue Reconstruction from Homestead Road to The Dalles. Total estimated cost of the project is $1,148,122. A budget modification to identify necessary funds for this project would be carried out at a later date once a funding agreement is in place and cost estimates are refined, but matching funds are available in the Transportation Matching Funds capital project and Maintenance of Effort funds in program 116, Pavement Operations. The program requires the approval of a resolution of support committing to complete the project and provide local matching funds. Staff recommends approval of the attached resolution (Attachment 1).
BACKGROUND
An allocation of Federal Surface Transportation Program funds has been made to the Bay Area and subsequently Santa Clara County for the FY 05/06 budget year. These funds are for rehabilitation of major local roadways that are part of the Metropolitan Transportation System (MTS) and have fallen below a certain pavement condition as measured by the Metropolitan Transportation Commission Pavement Management System (MTC PMS). Agencies with no MTS needs can apply the funds for rehabilitation of other major, federally eligible roadways in their jurisdiction. Through a task force process of city, county and Santa Clara Valley Transportation Authority (VTA) staffs, pavement rehabilitation needs throughout Santa Clara County were considered and a needs-based allocation made to each Santa Clara County jurisdiction. Sunnyvale’s allocation is $493,620.
Local agencies must submit an application for candidate projects for this special program to VTA. Projects will be screened for compliance with federal and local eligibility criteria. The Santa Clara Valley Transportation Authority (VTA) prioritizes the submitted projects and then submits their list of recommended projects to the Metropolitan Transportation Commission (MTC) for approval. MTC approves the projects with instruction to 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 C3.4; Maintain roadways and traffic control devices in good operating condition.
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 these grant funds. Eligible roadways must meet the MTC PMS criteria and federal eligibility requirements. Staff has determined that a segment of Mary Avenue from Homestead Road to The Dalles is eligible for the Program in the time frame for funding. Staff had identified previously budgeted funds in capital project 825540, Transportation Grant Matching Funds, and Maintenance of Effort funds in Program 116, Pavement Operations in the total amount of $654,502 be budgeted as local matching funds. Program 116 funds will come from a carryover of FY 04/05 funds as well as FY 05/06 funds. Staff will return at a later date with a budget modification and a refined cost estimate to create this project, once a funding agreement is prepared. This grant will be administered through existing Public Works operating budgets. There will be no increased costs subsequent to completion of the project and termination of the grant.
FISCAL IMPACT
These funds will be added to the 10 Year Resource Allocation Plan in FY 2005/06 as a new capital project, Mary Avenue Reconstruction Project. Total project cost is $1,148,122. Granting of $493,620 in unanticipated revenue constitutes a positive fiscal impact. Staff had identified previously budgeted funds in capital project 825540, Transportation Grant Matching Funds, and Maintenance of Effort funds in Program 116, Pavement Operations in the total amount of $654,502 be budgeted as local matching funds. Staff will return at a later date with a budget modification to create this project once a funding agreement is prepared.
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.
CONCLUSION
A funding allocation in the amount of $493,620 has been allocated to the City for pavement rehabilitation. Staff has identified Mary Avenue Reconstruction Project as an eligible project with a total cost of $1,148,122. Funds to cover the cost difference and to meet matching requirements are available in capital project 825540, Transportation Grant Matching Funds, and Maintenance of Effort funds in Program 116, Pavement Operations. A grant application and resolution of support are required to be eligible for funding.
ALTERNATIVES
- Authorize staff to apply for Federal Surface Transportation Program Funds for Local Streets and Roads Rehabilitation Projects for a Mary Avenue Reconstruction Project, in the total project amount of $1,148,122. Federal funds are allocated in the amount of $493,620. Approve the attached Resolution of Support for Federal Surface Transportation Program Funds for the Mary Avenue Reconstruction Project.
- Do not take action at this time and forfeit Federal Surface Transportation Program Funds for Local Streets and Roads Rehabilitation Projects