July 19, 2005

SUBJECT:   City Manager Authorization for Future Caltrans and VTA Agreement Execution Regarding Mary Avenue and Mathilda/237/101 Improvement Projects and Budget Modification No. 1

REPORT IN BRIEF

Approval is requested for authorization for the execution of required agreements with the California Department of Transportation (Caltrans) and the Santa Clara Valley Transportation Authority (VTA) for engineering and environmental analysis of major transportation improvements in the Mathilda Avenue/Route 237, US 101, Mary Avenue area.  These agreements include a City/VTA Cooperative Agreement for conducting studies, and possibly a Cooperative Agreement with the California Department of Transportation to allow Caltrans participation in the studies.  Authorization is requested at this time to allow expeditious execution of agreement documents to allow work to proceed in a timely fashion.  This information is important for facilitating pending land development applications that may be of benefit to the economic development of the City. The Valley Transportation Authority is providing 31% or $250,000 in matching funds for this work.   

Approval of Budget Modification No. 1 is also requested to move $500,000 currently budgeted in FY 2006/07 to FY 2005/06 to ensure timely completion of the Study.  The total City project cost remains the same at $550,000, funded by Traffic Mitigation funds.  The joint project cost including VTA’s matching funds is $800,000.   VTA’s portion will be managed and expended by VTA, and therefore not reflected in the City budget.

BACKGROUND

The City of Sunnyvale has planned for the extension of Mary Avenue to the Moffett Park area since the 1980’s.  Recent efforts include the adoption of the Transportation Strategic Program, which includes: the Mary Avenue Extension as a project to be funded with transportation impact fees on new development; the Highway 237 Corridor Study, which included a detailed operations analysis that better defined the need for the Mary Avenue Extension; and, other improvements to the Mathilda/237/101 area in order to support future land development.  The City submitted the Mary Avenue Extension and other improvement plans to the VTA for inclusion in the Valley Transportation Plan 2030 long range planning document for Santa Clara County.  These projects were deemed eligible priorities for the Plan.  As such, they may potentially receive future outside major transportation project funding.  Also, the VTA will advocate and assist with the development of these projects, as regional transportation system improvement priorities.   

The City has budgeted $50,000 in FY 2005/06 and $500,000 in FY 2006/07 to initiate engineering and environmental studies to assist in the determination of a final Mary Avenue Extension alignment, and to complete Caltrans studies required for the programming of outside funds.  Recent land development proposals have caused a need to expedite this work.
   

EXISTING POLICY

Land Use and Transportation Element R1 – Protect and sustain a high quality of life in Sunnyvale by participating in coordinated land use and transportation planning in the region.

Land Use and Transportation Element R1.6, Preserve the option of extending Mary Avenue to the industrial areas north of U.S. Highway 101.

DISCUSSION

The adopted FY 2005/06 Budget includes project 825630 Mary Avenue Extension Engineering and Environmental Analysis.  This project is intended to conduct conceptual engineering, environmental clearance, and Caltrans Project Study Report work for major transportation improvements in the Mathilda Avenue/Route 237, US 101, Mary Avenue area.  In 2004, the City and VTA completed the 237 Corridor Study which identified project priorities for the improvement of the Route 237 corridor and Mathilda Avenue corridor.  Recent land development proposals may impact the feasibility of certain improvements, particularly the extension of Mary Avenue from Almanor Avenue over Routes 237 and 101 into the Moffett Park area.  The City has programmed the Mary Avenue Extension Engineering and Environmental Analysis to allow the necessary engineering and environmental work to identify and approve an alignment for the Mary Avenue Extension, and to advance the engineering of improvements to the Mathilda Avenue/237/101 interchanges to improve project readiness.  The VTA has concurrently expressed a desire to advance certain high priority regional projects, including the Mary Avenue Extension, and the Mathilda Avenue/237/101 improvement, in order to facilitate future outside funding.  City staff and the VTA have held discussions on how to facilitate the completion of this work, and VTA has offered matching funds in the amount of $250,000.

It is envisioned that the VTA will take a lead role on certain engineering and Caltrans-required reports, including a traffic operations report and Project Study Reports for the two projects.  The City will be the lead agency for an environmental assessment and CEQA documentation for the Mary Avenue Extension project.  Roles will be clarified in a pending City/VTA Cooperative Agreement, which will be executed once negotiations on work scope and cost are conducted with a pre-qualified VTA contractor.   In order to facilitate the start of work, City and VTA staff are requesting authorization to execute this Cooperative Agreement at this time.  Delaying agreement execution until after scope negotiations are conducted could add as much as 6-8 weeks to the project schedule. 

This project was anticipated to be initiated in FY 2005/06, with the bulk of the work to be completed in FY 2006/07.  Expeditious conduct of this study is now necessary so as to improve economic development activities in the area.  Staff is recommending that a budget modification be executed to move FY 2006/07 funding for this project into FY 2005/06.

A Cooperative Agreement or Agreements with Caltrans may be required to allow their participation in the Study. Caltrans would be involved primarily as a reviewing agency, although parts of the subject projects would occur within their right of way. Staff recommends that the City Manager be authorized to execute agreements as required with Caltrans for the conduct of these studies as well.

FISCAL IMPACT

Authorization of execution of agreements will allow the City to realize $250,000 in matching funds from the VTA for conceptual engineering and environmental review of transportation improvement projects.  Approval of Budget Modification No. 1 is requested to move $500,000 currently budgeted in FY 2006/07 to FY 2005/06 to ensure timely completion of the Study.  The total City project cost remains the same at $550,000, funded by Traffic Mitigation funds.  The joint project cost including VTA’s matching funds is $800,000.   VTA’s portion will be managed and expended by VTA, and therefore is not reflected in the City budget.

BUDGET MODIFICATION NO. 1

FISCAL YEAR 2005/2006

CONCLUSION

Staff is initiating work on a FY 05/06 capital project to conduct an environmental and engineering analysis of major transportation improvements in the Mathilda Avenue/Route 237, US 101, Mary Avenue area.  Authorization is requested at this time to allow expeditious execution of agreement documents to allow work to proceed in a timely fashion.  This information is important for facilitating pending land development applications that may be of benefit to the economic development of the City. A budget modification is also requested to move funds budgeted in FY 06/07 to FY 05/06. The Valley Transportation Authority is providing 31% matching funds for this work.   Approval is requested for authorization for the execution of required agreements with the California Department of Transportation (Caltrans) and the Santa Clara Valley Transportation Authority (VTA) for engineering and environmental analysis of major transportation improvements These agreements include a City/VTA Cooperative Agreement for conducting studies, and possibly a Cooperative Agreement with the California Department of Transportation to allow Caltrans participation in the studies. 

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. Authorizing the City Manager to execute required agreements with the Santa Clara Valley Transportation Authority and Caltrans to facilitate conceptual engineering and environmental analysis of transportation improvements in the Mathilda Avenue/SR 237/US101/Mary Avenue area, including the Mary Avenue Extension.

2. Approve Budget Modification No. 1 as outlined in this report.

3. Elect not to authorize the City Manager to execute required agreements and forego VTA funding for conceptual engineering and environmental analysis of the Mathilda Avenue/SR 237/US101/Mary Avenue area major transportation improvements. Continue to consider agreements on a case by case basis.

4. Do not approve Budget Modification No. 1.

RECOMMENDATION

Staff recommends Alternatives 1 and 2: 1) Authorizing the City Manager to execute required agreements with the Santa Clara Valley Transportation Authority and Caltrans to facilitate conceptual engineering and environmental analysis of transportation improvements in the Mathilda Avenue/SR 237/US101/Mary Avenue area, including the Mary Avenue Extension; and, 2) Approve Budget Modification No. 1 as outlined in this report.

Authorization will allow expeditious execution of agreement documents to allow work to proceed in a timely fashion.  This information is important for facilitating pending land development applications that may be of benefit to the economic development of the City. The Valley Transportation Authority is providing 31% or $250,000 in matching funds for this work.

Reviewed by: 

Marvin Rose, Director, Public Works
Prepared by Jack Witthaus, Transportation and Traffic Manager

Reviewed by:

Mary J. Bradley, Director, Finance 

Approved by:

Amy Chan

City Manager