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Staff Report PREPARED BY: MATT MORLEY Director of Parks and Public Works 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: 6/20/2017 ITEM NO: 6 DATE: JUNE 7, 2017 TO: MAYOR AND TOWN COUNCIL FROM: LAUREL PREVETTI, TOWN MANAGER SUBJECT: ONE BAY AREA GRANT CYCLE II FUNDING A. AUTHORIZE THE TOWN MANAGER TO EXECUTE AND FILE AN APPLICATION FOR FUNDING FOR THE DESIGN OF THE TRAILHEAD CONNECTION FROM LOS GATOS CREEK TRAIL TO HIGHWAY 9 FROM NON-COMPETITIVE ONE BAY AREA GRANT CYCLE II FUNDING; B. AUTHORIZE THE TOWN MANAGER TO ISSUE A REQUEST FOR PROPOSALS FOR DESIGN OF THE PROJECT; C. ADOPT A RESOLUTION OF LOCAL SUPPORTAUTHORIZING THE FILING OF AN APPLICATION FOR FUNDING ASSIGNED TO MTC, COMMITTING ANY NECESSARY MATCHING FUNDS, AND STATING ASSURANCE TO COMPLETE THE PROJECT; AND D. ADOPT A RESOLUTION AGREEING THAT THE TOWN WILL COMPLY WITH THE SURPLUS LAND ACT. RECOMMENDATION: Staff recommends that the Town Council: 1. Authorize the Town Manager to execute and file an application for funding for the design of the trailhead connection for Los Gatos Creek Trail to Highway 9 from non - competitive One Bay Area Grant (OBAG) Cycle II funding; 2. Authorize the Town Manager to issue a request for proposals for design of the project; 3. Adopt a resolution (Attachment 1) of local support authorizing the filing of an application for funding assigned to MTC, committing any necessary matching funds; and stating assurance to complete the project; and 4. Adopt a resolution (Attachment 2) agreeing that the Town will comply with the Surplus Lands Act. PAGE 2 OF 4 SUBJECT: ONE BAY AREA GRANT CYCLE II FUNDING JUNE 8, 2017 S:\COUNCIL REPORTS\2017\06-20-17\One Bay Area Grant Cycle II Funding\Staff Report - One Bay Area Grant FINAL.docx 6/15/2017 11:19 AM MM BACKGROUND: The Metropolitan Transportation Commission (MTC) One Bay Area Grant program (OBAG) is a funding approach that directs the MTC’s investments towards transportation solutions that align with regional priorities. Available grant money is distributed to cities and counties through the Valley Transportation Authority (VTA). The funds are broken into competitive funding, in which cities and counties must compete with each other for the funds, and non- competitive funding, which is a formulaic funding process that provides money directly to cities and counties based on population. This recommendation includes only the non-competitive program. Cities and counties can use these OBAG funds to invest in:  Local street and road maintenance  Streetscape enhancements  Bicycle and pedestrian improvements  Transportation planning  Safe Routes to School projects DISCUSSION: Project Recommendation for OBAG Cycle II funding The OBAG Cycle II grant application is due for submittal by the middle of July. This non- competitive grant totals approximately $343,000. The application requires that the Town identify the project for which the funds will be used through a Council resolution. As noted above, there are several areas that qualify for use of the funds and each has its benefits. Town staff is recommending the use of funds for design of a bike and pedestrian connector to the Los Gatos Creek Trail at Highway 9. This proposal would utilize the funds to design the project to a point where the Town can release the project for bid, making it a “shovel ready” project. There are several reasons behind this recommendation. First, shovel ready projects are more easily funded through other funding sources, including Measure B. This means a small investment upfront could position the Town for receiving much greater funding in the future. Additionally, the funding investment will count towards future match requirements. For example, Measure B requires a 10% non-measure B funding source as a match for all projects. Finally, the connector at Highway 9 continues to be an identified priority for the Town within Measure B and the Bicycle and Pedestrian Master Plan and designing the project will move it one step closer to construction while minimizing the investment of Town funds. Staff has reviewed the project and recommendation with the Bicycle and Pedestrian Advisory Commission and the Commission unanimously supports the use of the OBAG Cycle II funds PAGE 3 OF 4 SUBJECT: ONE BAY AREA GRANT CYCLE II FUNDING JUNE 8, 2017 S:\COUNCIL REPORTS\2017\06-20-17\One Bay Area Grant Cycle II Funding\Staff Report - One Bay Area Grant FINAL.docx 6/15/2017 11:19 AM MM DISCUSSION (cont’d): towards this goal. The recommendation was also presented to the Transportation and Parking Commission, who also expressed its support. Adoption of Required Metropolitan Transportation Commission Resolutions Two resolutions are required to implement the recommendation. The first resolution (Attachment 1) serves to provide documentation to the MTC of the Town Council support of the project. The second resolution (Attachment 2) commits the Town to following the State’s Surplus Land Act (California Government Code Section 54220 et seq.). The Town already complies with this act as it is State law. In brief, the code section for the Surplus Land Act identifies priority use for surplus government owned land, including use for below market rate housing, schools, and open space. The MTC requests confirmation through resolution as there is no enforcement mechanism in place to ensure compliance. CONCLUSION: Staff recommends approval of this item in order to begin the design for a trailhead connector from Highway 9 to the Los Gatos Creek Trail. NEXT STEPS: With approval, staff will submit the application for the OBAG Cycle II funds. Staff anticipates funds will become available in October 2017 and would issue an RFP for design services to coincide with that timeframe. Staff will return to Council for award of the design contract that results from the RFP. At that time, the Town would also accept the grant funds and identify a source for the OBAG Cycle II match of approximately $39,000. ALTERNATIVES: An alternative use of the OBAG Cycle II funds could include any project within the categories noted above. Typically the Town would direct the funds towards pavement maintenance needs. Staff considered this option in making the recommendation and determined that positioning the Town for future funding, thus leveraging these grant funds, was a better long term use of the funds. This is supported by the funding increases that the Town will be receiving for pavement maintenance from both Measure B and recent gas tax increases, which combined should allow the Town’s Pavement Condition Index (PCI) to increase two to three points over the next five years. PAGE 4 OF 4 SUBJECT: ONE BAY AREA GRANT CYCLE II FUNDING JUNE 8, 2017 S:\COUNCIL REPORTS\2017\06-20-17\One Bay Area Grant Cycle II Funding\Staff Report - One Bay Area Grant FINAL.docx 6/15/2017 11:19 AM MM COORDINATION: This item has been coordinated with the Town Attorney’s office and the Finance Department. FISCAL IMPACT: There is no fiscal impact from this action; however, the Town will be asked to provide a future match of approximately $39,000 which could come from the General Fund Reserve. ENVIRONMENTAL ASSESSMENT: This is not a project defined under CEQA, and no further action is required. Attachments: 1. Resolution of Local Support 2. Resolution for Surplus Land Act