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Staff ReportPREPARED BY: MATT MORLEY Director of Parks and Public Works Reviewed by: Assistant Town Manager Town Attorney Finance S:\COUNCIL REPORTS\2016\5-17-16\TDA\Staff Report - MTC Article 3 Funds FINAL.docx5/12/2016 9:57 AM SH MEETING DATE: 05/17/16 ITEM NO: 3 COUNCIL AGENDA REPORT DATE: MAY 6, 2016 TO: MAYOR AND TOWN COUNCIL FROM: LAUREL PREVETTI, TOWN MANAGER SUBJECT: METROPOLITAN TRANSPORTATION COMMISSION (MTC) TRANSPORTATION DEVELOPMENT ACT ARTICLE 3 FUNDS A. ADOPT A RESOLUTION AUTHORIZING THE TOWN MANAGER TO FILE AN APPLICATION FOR 2016/17 METROPOLITAN TRANSPORTATION COMMISSION (MTC) TRANSPORTATION DEVELOPMENT ACT ARTICLE 3 FUNDS IN THE AMOUNT OF $79,848 TO FUND A PORTION OF THE BICYCLE AND PEDESTRIAN MASTER PLAN. B. UPON APPROVAL OF TDA FUNDING, AUTHORIZE A BUDGET ADJUSTMENT OF $7,348 (NEW TOTAL PROJECT FUNDING OF $127,348) REPLACING TRAFFIC MITIGATION FEES FUNDING SOURCE OF $72,500 WITH NEW TDA FUNDING SOURCE OF $79,848. RECOMMENDATION: 1. Adopt a resolution (Attachment 1) authorizing the Town Manager to file an application for 2016/17 Metropolitan Transportation Commission (MTC) Transportation Development Act (TDA) Article 3 funds in the amount of $79,848 to fund a portion of the Bicycle and Pedestrian Master Plan. 2. Upon approval of TDA funding, authorize a budget adjustment of $7,348 (new total project funding of $127,348) replacing traffic mitigation fees funding source of $72,500 with new TDA funding source of $79,848. BACKGROUND: The Santa Clara Valley Transportation Authority (VTA) issued a call for bicycle and pedestrian projects on March 3, 2016 for the TDA Article 3 funding program. The deadline to submit project applications to VTA was April 8, 2016 and staff submitted an application for funding of the Town’s Bicycle and Pedestrian Master Plan. A resolution adopted by the Town Council supporting project submittals is due to VTA on May 27, 2016. VTA staff will review the project proposals for eligibility, completeness, and compliance. The resulting County-wide list of projects will be reviewed by the VTA Advisory Committees before adoption by the Board of Directors in June. The County-wide list will be forwarded to the MTC and MTC will issue funding allocations, which will reimburse costs retroactive to July 1, 2016. PAGE 2 MAYOR AND TOWN COUNCIL SUBJECT: 2016/17 METROPOLITAN TRANSPORTATION COMMISSION (MTC) TRANSPORTATION DEVELOPMENT ACT ARTICLE 3 FUNDS MAY 6, 2016 BACKGROUND (cont’d): The Town is eligible for TDA funds that are calculated based on population. The Town has been given a “guarantee” share of $79,848, which includes banked funds from previous years. The program allows for the banking of funds across two program years, after which funds are lost. The base guarantee share allocation is based on 2015 California Department of Finance population figures. The MTC has a requirement that cities may not receive TDA Article 3 funds for bicycle projects unless the jurisdiction has established a Bicycle Advisory Committee and the project is included in an adopted plan. The funds are available for use to prepare a Bicycle and Pedestrian Master Plan. DISCUSSION: Staff has requested $79,848 from the Town’s guarantee share for the Bicycle and Pedestrian Master Plan project. This project is already funded with grant funds and traffic impact mitigation funds. The use of TDA funds will reimburse the Town’s Traffic Impact Mitigation Funds, the original source of $72,500 for this project, which can then be allocated for other projects in future years. The balance of the TDA funds will be used to offset staff costs for the preparation of the Bicycle and Pedestrian Master Plan. By offsetting the staff costs (which are budgeted in the General Fund) with grant funds, the operating budget savings will be available for other uses or, if savings result at the end of the fiscal year, those operating cost savings will carry into year end fund balance and ultimately into the General Fund Allocated Reserve (GFAR) for future capital projects. In previous years, the Town has had limited opportunities for use of TDA funds due to the requirement of a Bicycle Advisory Committee and Bicycle Plan. With the completion of a Bicycle and Pedestrian Master Plan, the Town will be able to apply for other uses in future years such as capital projects, bicycle safety education programs, and restriping of lanes. CONCLUSION: Staff recommends that the Council adopt a resolution authorizing the Town Manager to file an application for 2016/17 MTC TDA Article 3 funds in the amount of $79,848 to fund a portion of the Bicycle and Pedestrian Master Plan and, upon approval of TDA funding, authorize a budget adjustment of $7,348 (new total project funding of $127,348) replacing traffic mitigation fees funding source of $72,500 with new TDA funding source of $79,848. ENVIRONMENTAL ASSESSMENT: This is not a project as defined under CEQA, and no further action is required. FISCAL IMPACT: On March 24, 2016 Council approved a budget adjustment of $120,000 to create a Capital Improvement Project for the Bicycle and Pedestrian Master Plan, with a funding source and use as follows. PAGE 3 MAYOR AND TOWN COUNCIL SUBJECT: 2016/17 METROPOLITAN TRANSPORTATION COMMISSION (MTC) TRANSPORTATION DEVELOPMENT ACT ARTICLE 3 FUNDS MAY 6, 2016 FISCAL IMPACT (cont’d): Source of Funds County Health Department Grant $ 40,000 Monte Sereno Contribution 7,500 Traffic Impact Mitigation Fee Funds 72,500 Total Source of Funds $ 120,000 Use of Funds Consultant Services Agreement $ 100,000 Consultant Services Contingency 10,000 Staff Project Management 10,000 Total Use of Funds $ 120,000 With the final approval of TDA Article 3 funds by the MTC, the Town Traffic Impact Mitigation Fee funds can be replaced by the grant. These Traffic Impact Mitigation Fee funds will return to the fund balance and can be reallocated to other projects at a later date. The proposed funding source and use is below. Source of Funds County Health Department Grant $ 40,000 Monte Sereno Contribution 7,500 TDA Article 3 Funds 79,848 Total Source of Funds $ 127,348 Use of Funds Consultant Services Agreement $ 100,000 Consultant Services Contingency 10,000 Staff Project Management 17,348 Total Use of Funds $ 127,348 Attachment: 1. Draft Resolution