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Staff Report.Highway 17 Funding Agreement PREPARED BY: Matt Morley Parks and Public Works Director Reviewed by: Town Manager, Assistant Town Manager, Town Attorney, and Finance Director 110 E. Main Street Los Gatos, CA 95030 ● (408) 354-6832 www.losgatosca.gov TOWN OF LOS GATOS COUNCIL AGENDA REPORT MEETING DATE: 05/04/2021 ITEM NO: 8 DATE: April 28, 2021 TO: Mayor and Town Council FROM: Laurel Prevetti, Town Manager SUBJECT: Approve a Funding Agreement with the Santa Clara Valley Transportation Authority for the State Route 17 Corridor Congestion Relief Project (CIP NO. 813-0237) RECOMMENDATION: Approve a funding agreement with the Santa Clara Valley Transportation Authority (VTA) for the State Route 17 Corridor Congestion Relief Project (CIP No. 813-0237). BACKGROUND: In 2016, voters passed the countywide Measure B sales tax initiative. This Measure increased the local sales tax to pay for transportation related maintenance and improvements. As the Measure language was being crafted, the Town Council and staff lobbied for inclusion of categories and projects that would allow for the return of sales tax to the Town. One of the most competitive categories within Measure B is the Highways category. Within this category, potential projects are identified with specific language for Los Gatos that reads: Highway 17 Corridor Congestion Relief: Upgrade Highway 17/9 interchange to improve pedestrian and bicycle safety, mobility, and roadway operations; deploy advanced transportation technology to reduce freeway cut through traffic in Los Gatos, including traffic signal control system upgrades in Los Gatos, Traveler Information System, advanced ramp metering systems; support Multi-Modal Congestion Relief Solutions, including enhanced Highway 17 Express Bus service, implementing local bus system improvements that reduce auto trips to schools, work, and commercial areas in Los Gatos; and develop park and ride lots to serve as transit hubs for express bus, shuttles, local bus system connections. PAGE 2 OF 3 SUBJECT: Approve a Funding Agreement with the Santa Clara Valley Transportation Authority for the State Route 17 Corridor Congestion Relief Project (CIP NO. 813-0237) DATE: April 28, 2021 BACKGROUND (continued): This was an important achievement as the Highway program is significantly oversubscribed (potential projects far exceed the available funds in the Measure B Highway category). The Town has advanced a Highway 17 Congestion Relief project to provide relief from cut through traffic that occurs on weekdays and during summer weekends (known as beach traffic). Although Measure B may not be able to fund all of the project, having it proceed early allows for maximizing the funding that does go towards the project. For this project, the Valley Transportation Authority (VTA) is acting as the project lead with the Town and Caltrans as major stakeholders. Town staff have been working with VTA on initial stages of the project. On March 16, 2021 the Town Council supported continued advancement of this project. DISCUSSION: The project is ready to move to the next phase of design through execution of a funding agreement with the VTA to proceed with the Project Approval and Environmental Document (PAED). This agreement formalizes the Town’s commitment of $600,000 to advance the project. At the completion of the PAED phase, the total cost of the project will be approximately $4 million, inclusive of Town funds. CONCLUSION: Approval of the Funding Agreement will allow for this project to proceed to the PAED phase. COORDINATION: This project is coordinated with VTA and Caltrans. PAGE 3 OF 3 SUBJECT: Approve a Funding Agreement with the Santa Clara Valley Transportation Authority for the State Route 17 Corridor Congestion Relief Project (CIP NO. 813-0237) DATE: April 28, 2021 FISCAL IMPACT: The Adopted FY 2020/21 Capital Improvement Program budget includes sufficient funds for this phase of the project, as demonstrated in the fiscal table below. Highway 17/9 Interchange & Capacity Improvements Project 813-0237 Budget Costs Traffic Mitigation Fund $600,000 Total Budget $600,000 Santa Clara Valley Transportation Authority $600,000 Total Expenditures $600,000 Remaining Balance $0 ENVIRONMENTAL ASSESSMENT: The project will begin an environmental assessment during the next phase of the project. This report is ministerial and not subject to environmental review. Attachment: 1. Funding Agreement