June 13, 2006
SUBJECT: Adopt Resolution to Authorize the Filing of an Additional Fiscal Year 2006/07 Transportation Development Act Article 3 Application for Hendy Avenue/Caltrain Access and Frances Street Transit Center 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, and further earmarked for bicycle and pedestrian projects in the County through the VTA Bicycle Expenditure Program (BEP). In order to receive funds in the 2006/07 funding cycle, the City of Sunnyvale must submit potentially eligible projects to the Santa Clara Valley Transportation Authority (VTA) and to the Metropolitan Transportation Commission (MTC).
As a means to expedite construction of a formal access from Hendy Avenue to the Sunnyvale Caltrain station and to provide contingency funds for the Frances Street Transit Center project (a joint City/VTA project), Sunnyvale can access BEP funds as part of the FY 2006/07 funding cycle. VTA staff has recommended allocation of these funds to the City of Sunnyvale, and the VTA Board of Directors acted to approve the allocation at their June 1, 2006 meeting. The VTA has asked that the MTC allocate $139,997 to Sunnyvale pending City Council approval of an authorizing resolution. Funds would be available for expenditure on July 1, 2006. For the Hendy access, the City will pass these funds through to Caltrain, and Caltrain will construct the Hendy access.
This report requests that the City Council adopt a resolution to authorize filing for funding for Hendy Avenue/Caltrain Access and Frances Street Transit Center projects in the amount of $139,997.
BACKGROUND
The Transportation Development Act (TDA) is a source of funds generated by a quarter cent per gallon tax on gasoline and diesel fuel sales. A portion of these funds are returned by the State of California to the county in which they were collected for use on bicycle and pedestrian projects. The Metropolitan Transportation Commission (MTC) programs these funds in the nine Bay Area counties.
MTC requests that each year, the Congestion Management Agency (CMA) in each of the nine Bay Area counties, coordinate and submit annual TDA Article 3 program funding priorities for their respective counties. VTA serves as the CMA for Santa Clara County. The VTA TDA Article 3 project prioritization process is as follows:
Seventy percent of the annual allocation is guaranteed to Member Agencies based on the most recent California Department of Finance population estimates. These funds may be used for any eligible project, or can be banked by Member Agencies for later expenditure. The Sunnyvale City Council acted to allocate Sunnyvale’s guaranteed funds at its May 16, 2006 meeting. In addition to the guaranteed TDA Article 3 funds described above, TDA funds also make up a portion of the Countywide Bicycle Expenditure Program (BEP). The BEP is comprised of $90.5 million to fund bicycle projects listed in the Valley Transportation Plan 2030 for projects over the 2001-2030 time period. The BEP funding is a combination of: 1996 Measure B sales tax, Transportation Funds for Clean Air, Transportation Enhancement funds, Regional Bicycle/Pedestrian Program funds, and TDA Article 3 funds. The Sunnyvale Caltrain North Side Access Project is eligible for funding through the Countywide BEP. Acting in response to a City request, the FY 2006/07 funding recommendation from the VTA includes $139,997 of TDA Article 3 funds from the BEP.
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
As a means to expedite construction of a formal access from Hendy Avenue to the Sunnyvale Caltrain station and to provide contingency funds for the Frances Street Transit Center project (a joint City/VTA project), City staff requested an allocation of BEP funds via the annual TDA allocation to Santa Clara County for the FY 2006/07 funding cycle. VTA staff recommended allocation of these funds to the City of Sunnyvale, and the VTA Board of Directors acted to approve the allocation at their June 1, 2006 meeting. The VTA has asked that the MTC allocate $139,997 to Sunnyvale pending City Council approval of an authorizing resolution. Funds would be available for expenditure on July 1, 2006.
Staff has discussed other potential funding sources with the VTA, the County of Santa Clara, and the Peninsula Corridor Joint Powers Board (Caltrain). Other potential sources include Measure B, the VTA Community Design and Transportation Capital Program, VTA Local Capital Contribution to Caltrain, or the VTA Bicycle Expenditure Program. These sources have competitive, discretionary criteria and untimely funding cycles, or are otherwise budgeted. In the interest of expediency, as directed by the City Council, City staff believe that TDA Article 3 funding is the most expeditious way to fund the Hendy Avenue improvement with outside grant funds. Any balance remaining after completion of the access project will be available as a contingency for the Frances Street Transit Center project, which is a joint City/VTA project. This project, funded with Bay Area Air Quality Management District, Federal Transit Administration, and City funds, is at the 100% design stage. Project cost estimates are trending slightly higher than the available budget.
The Sunnyvale Bicycle and Pedestrian Advisory Committee (BPAC) did not hear a specific item on a TDA funding application for the Hendy Avenue/Caltrain Access and Frances Street Transit Center projects. However the BPAC has previously considered and supported both of these projects.
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 has allocated $139,997 to the City for the Hendy Avenue/Sunnyvale Caltrain and Frances Street Transit Center projects. For the Hendy Avenue access, the City will pass these funds through to Caltrain through a construction agreement, and Caltrain will administer the construction of the Hendy project. Once the project costs have been incurred, the City of Sunnyvale submits Caltrain billing information to MTC for appropriate reimbursement.
CONCLUSION
Council is being asked to adopt the attached resolution authorizing the filing of an additional Fiscal Year 2006/07 Transportation Development Act Article 3 application for Pedestrian and Bicycle Projects. City staff in cooperation with VTA staff have identified an available balance of TDA funds sufficient to cover the estimated cost of a Hendy Avenue/Sunnyvale Caltrain access. TDA funds meet the City’s objective of expedited funding and construction of the Hendy Avenue Access. Any balance remaining after completion of the access project will be available as a contingency for the France Street Transit Center project, which is a joint City/VTA 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 an additional project application with the VTA and MTC for allocation of Transportation Development Act funds for FY 2006/07 for Hendy Avenue/Sunnyvale Caltrain and Frances Street Transit Center projects.
2. Do not take action at this time and forfeit TDA funds for Hendy Avenue/Sunnyvale Caltrain and Frances Street Transit Center projects.
RECOMMENDATION
Staff recommends Alternative #1: Adopt the attached resolution authorizing the filing of an additional project application with the VTA and MTC for allocation of Transportation Development Act funds for FY 2006/07 in the amount of
$139,997 for Hendy Avenue/Sunnyvale Caltrain and Frances Street Transit Center projects.
The adoption of an authorizing resolution would provide funding for construction of a formal access from Hendy Avenue to the Sunnyvale Caltrain station with remaining funds to be used as a contingency for the Frances Street Transit Center project.
Reviewed by:
Marvin A. Rose Director, Public Works
Prepared by: Jack Witthaus, Transportation and Traffic Manager
Approved by:
Amy Chan
City Manager
Attachment
A. Resolution Approving Additional FY 2006/07 TDA Article 3 Application (.pdf 297kb)