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Staff Report PREPARED BY: YING SMITH Transportation and Mobility Manager Reviewed by: Town Manager, Assistant Town Manager, Town Attorney, Finance Director and Parks and Public Works Director 110 E. Main Street Los Gatos, CA 95030 ● 406-354-6832 www.losgatosca.gov TOWN OF LOS GATOS COUNCIL AGENDA REPORT MEETING DATE: 02/19/2019 ITEM NO: 6 DATE: FEBRUARY 13, 2019 TO: MAYOR AND TOWN COUNCIL FROM: LAUREL PREVETTI, TOWN MANAGER SUBJECT: LOS GATOS CREEK TRAIL TO HIGHWAY 9 CONNECTOR PROJECT APPLICATION TO SAFE CLEAN WATER AND NATURAL FLOOD PROTECTION GRANT PROGRAM A. ADOPT A RESOLUTION AUTHORIZING APPLICATION FOR GRANT FUNDS UNDER THE SAFE, CLEAN WATER AND NATURAL FLOOD PROTECTION PROGRAM OF 2012 FOR THE LOS GATOS CREEK TRAIL TO HIGHWAY 9 CONNECTOR PROJECT. B. AUTHORIZE THE TOWN MANAGER TO NEGOTIATE AND EXECUTE A GRANT AGREEMENT WITH THE SANTA CLARA VALLEY WATER DISTRICT. RECOMMENDATION: Staff recommends that the Town Council: 1. Adopt a resolution (Attachment 1) authorizing application for grant funds under the Safe Clean Water and Natural Flood Protection Program of 2012 for the Los Gatos Creek Trail to Highway 9 Connector. 2. Authorize the Town Manager to negotiate and execute a grant agreement with the Santa Clara Valley Water District (SCVWD). BACKGROUND: At the June 7, 2017 meeting, the Town Council authorized the Town Manager to execute and file an application for funding for the design of the Los Gatos Creek Trail to Highway 9 Connector from non-competitive One Bay Area Grant (OBAG) Cycle II funding. After the project was listed under the federal program, staff started working with Caltrans in the federal process to obtain Authorization to Proceed with Preliminary Engineering, also known as E-76 approval. Caltrans issued the E-76 approval on December 13, 2018 which was a critical milestone in the federal process. PAGE 2 OF 3 SUBJECT: LOS GATOS CREEK TRAIL TO HIGHWAY 9 CONNECTOR PROJECT APPLICATION TO SAFE CLEAN WATER AND NATURAL FLOOD PROTECTION GRANT PROGRAM DATE: FEBRUARY 13, 2019 S:\COUNCIL REPORTS\2019\02-19-19 Interviews\06 Grant Funds\Staff Report.docx 2/13/2019 4:45 PM BACKGROUND (continued): Town staff prepared a Request for Proposals (RFP) for Preliminary Engineering and Environmental Clearance, which was issued on February 15, 2019. Based on the review of RFP submittals the contract award is expected to be submitted in April for Council’s consideration. This phase of the project development will take approximately 12 months. In addition, in November 2018, the SCVWD opened a grant application process to award up to $571,000 in grant funding for projects related to developing access to trails and open space. This cycle includes the Access to Trails & Open Space grants under Safe, Clean Water Priority Area D3, which is part of the Safe, Clean Water and Natural Flood Protection Program parcel tax, approved by voters in 2012. DISCUSSION: The Los Gatos Creek Trail to Highway 9 Connector project has received long-standing support from the community, schools and Town Council. The 2017 Los Gatos – Monte Sereno Bicycle and Pedestrian Master Plan identifies this as a priority bicycle project. The project construction cost is estimated to exceed $4 million and the Town has yet to secure funding for the construction phase. After consultation with the SCVWD, Town staff determined that the project is eligible for this grant program and appears to meet the evaluation criteria very well. This is a competitive grant program with minimum point thresholds achieved through an evaluative process. For qualifying projects, the SCVWD may authorize full or partial funding. CONCLUSION: Applications for Safe Clean Water and Natural Flood Protection Program grants were due February 15, 2019, with award recommendations anticipated in April or May. Staff submitted a contingent application for an amount of $571,000, pending Council authorization. Approval of this item will continue to build funding solutions towards the construction of this project. COORDINATION: This item has been coordinated with the Finance Department and SCVWD staff. The Bicycle and Pedestrian Advisory Commission (BPAC) reviewed this item at its February 7, 2019 meeting and passed a motion to support staff’s recommendations. PAGE 3 OF 3 SUBJECT: LOS GATOS CREEK TRAIL TO HIGHWAY 9 CONNECTOR PROJECT APPLICATION TO SAFE CLEAN WATER AND NATURAL FLOOD PROTECTION GRANT PROGRAM DATE: FEBRUARY 13, 2019 S:\COUNCIL REPORTS\2019\02-19-19 Interviews\06 Grant Funds\Staff Report.docx 2/13/2019 4:45 PM FISCAL IMPACT: The project construction cost is estimated to be approximately $3-4 million. The Town’s grant application would request funding of $571,000. The remaining will be funded with the Town’s contribution and other competitive sources, including the 2016 Santa Clara County Measure B, and regional, State and Federal funding sources. This grant has a requirement of “at least 25% matching fund of total project cost prior to District funding.” If the Town is awarded grant funds it will be expected to program approximately $800,000 in Town funds in Fiscal Year 2020/21 to meet this requirement. The combination of SCVWD grant and Town funds can be used as the non -Measure B match, should the Town decide to apply for the Measure B Bike/ Pedestrian Capital Projects Co mpetitive Grant in mid-2019. Applying for the SCVWD grant will be the first step in securing funding for the construction phase of this project. ENVIRONMENTAL ASSESSMENT: Submitting a grant application is not a project defined under CEQA, and no further action is required. Attachment: 1. Resolution authorizing application for grant funds This Page Intentionally Left Blank