January 31, 2006

SUBJECT: Federal Surface Transportation Program Funds for Local Streets and Roads Rehabilitation Projects – Authorization to Submit Grant Application and Resolution of Support

REPORT IN BRIEF

An allocation of Federal Surface Transportation Program funds has been made to the Bay Area and subsequently Santa Clara County for FY 07/08 and FY 08/09 budget years.  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 the VTA Capital Improvement Program Sub-Committee, 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 $1,183,940.  Sunnyvale staff participates on the Capital Improvement Program Sub-Committee. 

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 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. Staff has determined that segments of Awahnee Drive, Kifer Road, Commercial Street and Washington Avenue are eligible for the Program in the time frame for funding.   

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 segments of Ahwahnee Drive, Kifer Road, Commercial Street and Washington Avenue are eligible for the Program in the time frame for funding.  Funds in the total amount of $153,392 will need to be budgeted as local matching funds over two fiscal years, FY 07/08 and FY 08/09.  Should the Council approve submittal of a grant application, these funds would be budgeted at the time a grant agreement is approved. Staff notes that potentially a portion of matching funds are currently budgeted under project 825290, Pavement Rehabilitation for roadway repairs to Ahwanee Avenue. Matching funds may also be allocated from existing project 825540, Transportation Grant Matching Funds.  This grant will be administered partly from grant revenues and partly from 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 20 Year Resource Allocation Plan in FY 2007/08 and FY 08/09 as a new capital project, Various Streets Pavement Rehabilitation.  Granting of $1.18 million in unanticipated revenue constitutes a positive fiscal impact. Funds in the total amount of $153,392 will need to be budgeted as local matching funds over two fiscal years, FY 07/08 and FY 08/09. Staff notes that potentially a portion of matching funds are currently budgeted under project 825290, Pavement Rehabilitation for roadway repairs to Ahwanee Avenue. Matching funds may also be allocated from existing project 825540, Transportation Grant Matching Funds.  This grant will be administered partly from grant revenues and partly from existing Public Works operating budgets.  Should the Council approve submittal of a grant application, these funds would be budgeted at the time a grant agreement is approved.

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 staff to apply for Federal Surface Transportation Program Funds for Local Streets and Roads Rehabilitation Projects for the allocated amount of $1,183,940.  This funding requires an 11.47% local match.

2. Approve the attached Resolution of Support for Federal Surface Transportation Program Funds for Local Streets and Roads Rehabilitation Projects

3. Do not take action at this time and forfeit Federal Surface Transportation Program Funds for Local Streets and Roads Rehabilitation Projects

RECOMMENDATION