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Staff ReportPREPARED BY : MATT MORLEY DIRECTOR OF PARKS AND PUBLIC WORKS Reviewed by: Assistant Town Manager Town Attorney Finance MEETING DATE: 10/18 /16 ITEM NO : 9 COUNCIL AGENDA REPORT DATE: OCTOBER 10 , 2016 TO: MAYOR AND TOWN COUNCIL FROM: LAUREL PREVETTI, TOWN MANAGER SUBJECT: RECEIVE A REPOR T ON REGIONAL TRANSPORTATION FUNDING EFFORTS AND POTENTIAL PROJECTS RECOMMENDATION : Receive a report on regional transportation funding efforts and potential projects. BACKGROUND : This report provides an overview of regional transportation funding efforts and potential projects, focused on the Envision Silicon Valley and Measure B in November. The information also covers the timing of projects and funding availability. DISCUSSION : Measure B Overview The VTA launched a program called Envision Silicon Valley in 2014 to facilitate the discussion of current and future transportation needs. Through the program, the VTA identified nearly $50 billion in transportation needs. As a step towards funding some of these projects, the VTA created Measure B as a 30 year half cent sales tax measure for the November ballot. Projected revenue over the life of the measure is between $6 billion and $6.5 billion. The measure requires a two -thirds affirmative vote in or der to pass. If successful, the VTA expects to begin receiving funds in April 2017. Buckets of Funding in Measure B To assist with addressing the funding needs, categories or buckets of funding were created through coordination of the VTA staff, VTA advisory commissions, and public input. PAGE 2 MAYOR AND TOWN COUNCIL SUBJECT: RECEIVE A REP OR T ON REGIONAL TRANSPORTATION FUNDING EFFORTS AND POTENTIAL PROJECTS OCTOBER 10, 2016 DISCUSSION (cont’d): Attachment 1 provides the VTA Board program and ballot language as approved. The categories include the following: Category Funding * B ART Phase II $1.5 billion * Bicycle/ Pedestrian Program $250 million Caltrain Corridor Capacity Improvements $314 million Caltrain Grade Separations $700 million * County Expressways $750 million * Highway Interchanges $750 million Local Streets and Roads $1.2 billion SR 85 Corridor $350 million * Transit Operations $500 million Total $6.314 billion Of these buckets of funding, those marked with an asterisk have identified projects within that category. These projects are meant to guide the use funds as they become available, although the VTA Board has the ability to adjust the lists in the future if needed by a ¾ majority vote of the B oard. The full list of projects can be found in the attachments to the VTA Board items (Attachment A). The ba lance of the categories will have formulaic or competitive allocations of funds. Los Gatos Projects As the project list was being developed, the Mayor and Parks and Public Works Director attended several meetings to ensure that Los Gatos needs were represented. During this process, five priorities were identified with specific benefit to the Town. School Focused Busing – The project would fund busing for local schools. This demand based model has been successful in Contra Costa County and the mode l envisioned would mimic that successful example. Bus routes are set up based on demand and provide transportation to the local schools. A successful project could significantly reduce traffic around the Town’s schools. Transit Hub – This project would develop a transit hub, potentially on property owned by the Santa Clara Valley Water District off of Winchester just north of Highway 85. The VTA has identified funds from an alternate funding source to acquire the property. The transit hub concept could serve public and private transit needs. Flex Bus - Similar in style to the VTA Flex busing program, this would provide bus service in the Town based on demand. Riders could schedule or call for pickup beyond the fixed route PAGE 3 MAYOR AND TOWN COUNCIL SUBJECT: RECEIVE A REP OR T ON REGIONAL TRANSPORTATION FUNDING EFFORTS AND POTENTIAL PROJECTS OCTOBER 10, 2016 DISCUSSION (cont’d): ti mes currently in place in Los Gatos. VTA believes this could be tested within the Transit Operations category. This item may be at risk due to the current status of the VTA Flex program. Traffic Signal System Upgrade – This project would upgrade traffi c signals Town -wide to take advantage of current technology. New technology allows for signals to coordinate with real time traffic conditions in comparison with today’s models that rely on more time of day type settings. An upgraded system would allow fo r smoother traffic flow throughout the Town. Vasona Light Rail – This project continues the transit hub project mentioned above and programs Light Rail to reach a new station at Winchester and Highway 85. Due to the cost and complexity of the project, th is is likely one that will be funded later in the time horizon of the measure. The VTA has, however, already taken action to move this project to pre -construction phases, which include conceptual designs, environmental studies, and property acquisition. Light Rail at this location may provide a transit option for local residents and commuters that doesn’t exist today, including rail connections to the rest of the valley. Attachment 1 contains the project categories where projects specific to Los Gatos ar e funded. These include several projects in the bicycle and pedestrian bucket. In addition, the Town will benefit in the Local Streets and Roads category, which is formulaic by population, and the Highway 85 Corridor section where a study is underway to identify options for this category (Attachment 2). The most notable project specific to the Town is on page B -2 of Attachment 1, where Highway 17 Corridor Relief is identified. 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 thru 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 . This item developed from an original list of projects that identified improvements for the Highway 17 and Highway 9 ramps as well as the widening of Highway 17 through Los Gatos. Because the Town has not been supportive of this latter item, it was removed and the combined items replaced with the broad language now in place. PAGE 4 MAYOR AND TOWN COUNCIL SUBJECT: RECEIVE A REP OR T ON REGIONAL TRANSPORTATION FUNDING EFFORTS AND POTENTIAL PROJECTS OCTOBER 10, 2016 DISCUSSION (cont’d): Funding Availability As mentioned above, the VTA anticipates funds from a successful sales tax initiative to begin flowing in April 2017. Between November and April the VTA, through its Commissions and Board, will set out how funds are to be allocated and spent. With a thirty year time horizon, some projects may occur later in the timeline. The VTA may also need to contemplate the issuance of bonds to meet some of the demand for the funds. This may be especially necessary for larger projects, such as BART. Other programs, that are operational in nature and need ongoing funds to meet the project goals, will need to receive funds through the entire thirty y ear life of the measure. CONCLUSION : Town staff will continue to participate in the Measure B program through its role on the VTA Technical Advisory Committee (TAC) and support to Council Members on the VTA Policy Advisory Board and State Route 85 Corrid or Policy Advisory Board . Work towards defining the parameters of how funds are allocated, among other program details, are expected to take place beginning immediately following the election on November 8. Staff will continue to provide regular updates to the Council as the process evolves. ENVIRONMENTAL ASSESSMENT : This is not a project as defined under CEQA, and no further action is required. Attachments: 1. VTA Board Agenda Item from June 2, 2016 – Envision Silicon Valley 2. VTA Board Agenda Item from June 24, 2016 – SR 85