May 17, 2005
SUBJECT: Adopt Resolution to Authorize the Filing of Fiscal Year 2005/06 Transportation Development Act Article 3 Applications for Pedestrian and Bicycle Projects
REPORT IN BRIEF
The Transportation Development Act (TDA) is a source of funds created by State legislation which annually returns to each region in the State 1/4 of 1% of sales tax revenues which are to be used for transportation projects. A portion of these funds are earmarked for bicycle and pedestrian projects. In order to receive funds in the 2005/06 funding cycle, the City of Sunnyvale must submit potential projects to the Santa Clara Valley Transportation Authority (VTA) and to the Metropolitan Transportation Commission (MTC). In FY 2005/06, $96,048 is guaranteed to the City for eligible projects. In addition to the 2005/06 guaranteed funds, staff recommends requesting an $86,000 advance from future year allocations. This brings the total funding request for 2005/06 to $182,048.
Staff and the Bicycle and Pedestrian Advisory Committee (BPAC) recommend that the City Council adopt the resolution to authorize the filing for funding for the Calabazas Creek Trail Project, as required by the Metropolitan Transportation Commission.
BACKGROUND
The Transportation Development Act (TDA) is a source of funds created by State legislation which annually returns to each region in the State 1/4 of 1% of sales tax revenues which are to be used for transportation projects. Article 3 funds are earmarked for bicycle and pedestrian projects. In order to receive funds in the 2005/06 funding cycle, the City of Sunnyvale must submit potential projects to the Santa Clara Valley Transportation Authority (VTA) and to the Metropolitan Transportation Commission (MTC), along with a resolution.
The TDA Article 3 application process involves submittal of the application to the VTA. The VTA prioritizes the submitted projects and then submits their list of recommended projects to MTC for approval. Traditionally, MTC approves the projects with instructions to implement the projects within three years of the funding year. The City implements the approved projects and then submits paperwork to MTC to be refunded for the money expended.
Projects which have been funded from prior years include purchase and installation of bike racks and lockers, marking of bike symbols on loop detectors, upgrading of loop detectors, purchase of bike rodeo equipment, sidewalk installations around the City, handicap ramp construction, comprehensive bike facilities study, installation of audible pedestrian signals, and bike lane construction.
The VTA apportionment formula gives 70% of the funds to cities and the county according to population, promising to the City of Sunnyvale $98,048 for FY 05/06 in TDA Article 3 funds. The remaining 30% funds, will be available for bicycle projects listed on the Valley Transportation Plan 2020 Tier 1 Bicycle Expenditure Program project list. Bicycle Expenditure Program allocations are made through a separate process; Sunnyvale has two projects in the Bicycle Expenditure Program.
The Bicycle and Pedestrian Advisory Committee (BPAC) considered 2005 TDA candidate projects at its April 21, 2005 meeting. The BPAC took action to accept staff's recommendation for allocating FY 05/06 TDA funding as well as the funding advance, for the Calabazas Creek Trail. The Committee also recommended that the TDA funding for the project be expended only after other funding sources have been used, and that any remaining TDA funding be reallocated to other Sunnyvale bicycle/pedestrian projects.
EXISTING POLICY
The following documents contain policy direction on this issue.
Land Use and Transportation Element C3.5.4, Maximize the provision of bicycle and pedestrian facilities.
Bicycle Plan BP.B3, The City of Sunnyvale shall pursue all available funding options for bicycle facility construction and improvements.
Fiscal Sub-Element 7.1B.4d, Pursue and use intergovernmental assistance for projects in the Ten-Year Capital Improvement Plan.
DISCUSSION
Staff reviewed the Resource Allocation Plan and considered other unbudgeted projects in developing a recommendation for candidate projects to the Bicycle and Pedestrian Advisory Committee.
Candidate TDA projects for 2005 were based on review of budgeted projects in the Resource Allocation Plan, review of TDA eligibility requirements, consideration of the Bicycle Capital Improvement Program, and Committee members' and staff's knowledge of bicycle and pedestrian facility needs in the City. This year staff recommends that the TDA funds be used to supplement the Calabazas Creek Trail Project that is already in the Resource Allocation Plan and requires additional funds for completion.
Calabazas Creek Trail is funded in the FY 2004/05 budget. The project is partially funded through a $309,726 grant from the Federal Transportation Equity Act for the 21st Century (TEA 21), $200,000 from the Trails Parks and Open Spaces grant, and $290,704 in Transportation Development Act funds. The City has received bids for the construction contract for this project. The $182,048 of TDA funds are needed to meet the cost of the current construction bid and to provide a sufficient contingency for the project (see RTC 05-140 for details regarding the construction contract award which is also on the May 17, 2005 City Council agenda.)
Table 1 – Proposed funding for Calabazas Creek Trail
|
Project |
FY 04/05 Budget |
Year to Date Expenditure |
Remaining Balance |
Total 05/06 TDA Revenue |
Total Budget with TDA Revenues |
Current Bid with 14% contingency |
|
Calabazas Creek Trail |
$800,430 |
($6,055) |
$794,375 |
$182,048 |
$976,423 |
$975,145 |
In FY 2005/06, $96,048 is guaranteed to the City of Sunnyvale for eligible projects. In addition to the 2005/06 guaranteed funds, staff recommends requesting that $86,000 be advanced from future year TDA allocations in order to meet the current funding needs for the Calabazas Creek Trail Project. If the $86,000 advance is approved, in FY 2006/07 the City will receive its TDA allocation minus the $86,000 advance. Advances are a standard TDA procedure. Should the City not pursue an advance, additional funding would be required from another source in order to maintain sufficient project contingency. An alternative source of funding could be a project recommended for funding in 2005-2006, the Transportation Grant Matching Funds project, which is intended to budget funds to anticipate grant matching requirements for transportation projects. This project utilizes development mitigation funds.
FISCAL IMPACT
TDA Article 3 is a program that reimburses cities for the incurred costs of the selected projects. No local matching funds are required. The VTA estimates the City will receive funds in the amount of $182,048. Once the project costs have been incurred, the City of Sunnyvale submits the information to MTC for appropriate reimbursement.
CONCLUSION
Council is being asked to adopt the attached resolution authorizing the Filing of Fiscal Year 2005/06 Transportation Development Act Article 3 Applications for Pedestrian and Bicycle Projects. Staff and the Bicycle and Pedestrian Advisory Committee have considered potentially eligible projects for TDA funding, and found TDA funds in the amount of $182,048 could be used to supplement the Calabazas Creek Trail Project. This project is already partially funded in the Fiscal Year 2004/05 budget, but requires additional funding to meet the cost of the current construction bid and to provide a sufficient contingency for the project.
PUBLIC CONTACT
Public notice of this City Council public hearing 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. Adopt the attached resolution authorizing the filing of a project application for the Calabazas Creek Trail Project with the VTA and MTC for allocation of Transportation Development Act funds for FY 2005/06 for pedestrian/bicycle projects.
2. Adopt a candidate project list different than the staff and BPAC-recommendation.
3. Do not take action at this time and forfeit TDA funds for 2005/06.