REPORT TO COUNCIL
SUBJECT
Title
Action to: (1) Adopt a Resolution of Local Support for the Santa Clara Uncontrolled Crosswalk Phase 2 Project, (2) Authorize the City Manager to Execute All Documents Related to Accepting the Housing Incentive Pool Grant Program Funding, (3) Authorize the City Manager to Amend the Kimley-Horn and Associates, Inc. Consultant Service Agreement As Needed for Federal Funding Requirements, and (4) Approve Related Budget Amendments
Report
COUNCIL PILLAR
Deliver and Enhance High Quality Efficient Services and Infrastructures
BACKGROUND
In October 2018, the Metropolitan Transportation Commission (MTC) created the Housing Incentive Pool (HIP) Program. The HIP Program is part of the One Bay Area Grant (OBAG) Cycle 2 Program and is a competitive incentive program that rewards local jurisdictions for producing or preserving affordable housing units. MTC will distribute approximately $71 Million to the top 15 local agencies based on the amount of affordable housing production and preservation performed from 2018 through 2022. In addition, HIP grant recipients must be in compliance with the state housing laws. These funds are comprised of the Federal Highway Administration transportation formula funds from the Surface Transportation Block Grant Program and the Congestion Mitigation and Air Quality Improvement Program. All HIP funds must be used for transportation purposes and are subject to all other guidelines and eligibility requirements associated with the fund sources, which includes the OBAG Program.
In April 2024, MTC notified Santa Clara it was one of the top 15 agencies to meet the HIP Program requirements and would be awarded HIP funding in the amount of $1,754,000. To be eligible to receive these funds, the City had to submit a letter of interest application to MTC by December 2024 recommending at least two projects to use the funds. MTC would then review the applications and select one project to move forward with the funding based on the criteria that the projects support shared local and regional priorities such as safety enhancements, active transportation facilities or transit improvement projects. Staff reviewed the HIP Program requirements and in consultation with the City’s Bicycle and Pedestrian Advisory Committee (BPAC), submitted applications for the Pruneridge Avenue Bicycle and Pedestrian Improvements and the Santa Clara Uncontrolled Crosswalk Phase 2 projects. MTC completed their evaluation and selected the Santa Clara Uncontrolled Crosswalk Phase 2 project. The letter of intent submitted for the project specified that the City would use the grant funds solely for the construction phase of the project.
The Santa Clara Uncontrolled Crosswalk Phase 2 project (Project) is currently programmed within the FY 2024/25 and FY 2025/26 Adopted Capital Improvement Program Budget and is funded through gas tax and vehicle registration fee revenues. Its purpose is to analyze, design, and construct improvements at approximately 13 uncontrolled crosswalks throughout the City (Attachment 1). Improvements could include things such as the installation of pedestrian warning beacons, traffic signs, roadway striping, street lighting, ADA curb ramps and curb extensions. In December 2024, the City awarded the design professional service agreement to Kimley-Horn and Associates, Inc. to prepare the design and construction bid documents for the Project.
DISCUSSION
In order to receive HIP funding, the City must adopt a Resolution of Local Support that authorizes the filing of an application for funding assigned to MTC, commits necessary matching funds, and states assurance to complete the project (Attachment 2). In addition, a Complete Streets Checklist provided by MTC must be completed for the Project and reviewed by the City’s BPAC. The completed MTC Complete Streets Checklist was reviewed by the BPAC at their January 27, 2025, meeting and no comments were received.
As a result of receiving federal grant funding, the Project will be subject to additional federal requirements, including review and approval processes through the State of California Department of Transportation (Caltrans) that were not contemplated when entering into the original design professional services agreement with Kimley-Horn. Staff recommends authorizing the City Manager to amend the agreement with Kimley-Horn as needed to provide additional services associated with the federal funding requirements.
ENVIRONMENTAL REVIEW
The action being considered does not constitute a “project” within the meaning of the California Environmental Quality Act (“CEQA”) pursuant to CEQA Guidelines section 15378(a) as it has no potential for resulting in a direct physical change in the environment, or a reasonably foreseeable indirect physical change in the environment.
FISCAL IMPACT
The table below provides a breakdown of HIP funding and local funds for the project.
|
|
Santa Clara Uncontrolled Crosswalk Phase 2 |
|
Housing Incentive Pool |
$1,754,000 |
|
Required Local Match (minimum of 11.47%) |
$227,250 |
|
Total Project Budget |
$1,981,250 |
Staff recommends increasing the Other Agencies Revenue by $1,754,000 to recognize HIP funding and appropriating $1,754,000 for the Project in the existing Streets and Highways Capital Fund - Uncontrolled Crosswalks Improvements project. Funding for the Project is being provided by HIP funding and local City funds. Local match funds are also available in the Streets and Highways Capital Fund - Uncontrolled Crosswalks Improvements project.
As previously noted, the Uncontrolled Crosswalks Improvements Project is funded by gas tax and vehicle registration fee revenues. To utilize HIP funding for construction, a portion of the gas tax funding allocated to the project for FY 2025/26 would be defunded from the project and returned to the Unrestricted Ending Fund Balance in the Streets and Highways Capital Fund to be reserved for other traffic safety-related projects.
The current agreement with Kimley-Horn and Associates, Inc. has a maximum compensation amount not-to-exceed $368,920. This report recommends increasing the City Manager’s maximum not-to-exceed authorization amount for the agreement to $400,000, to amend the agreement as needed for additional services associated with the federal funding requirements. Funds for the increase in the not-to-exceed authorized amount are available in the Streets and Highways Capital Fund - Uncontrolled Crosswalks Improvements project
The table below summarizes the recommended budget amendment needed for the Project.
Budget Amendment
FY 2025/26
|
|
Current |
Increase/ (Decrease) |
Revised |
|
Streets and Highways Capital Fund |
|
|
|
|
|
|
|
|
|
Revenues |
|
|
|
|
Other Agencies Revenue |
$25,820,000 |
$1,754,000 |
$27,574,000 |
|
|
|
|
|
|
Expenditures |
|
|
|
|
Unrestricted Ending Fund Balance (from reallocated gas tax funds) |
$1,748,273 |
$1,000,000 |
$2,748,273 |
|
Uncontrolled Crosswalks Improvements Project (net impact) |
$2,185,316 |
$754,000 |
$2,939,316 |
COORDINATION
This report has been coordinated with the Finance Department, BPAC, and the City Attorney’s Office.
PUBLIC CONTACT
Public contact was made by posting the Council agenda on the City’s official-notice bulletin board outside City Hall Council Chambers. A complete agenda packet is available on the City’s website and in the City Clerk’s Office at least 72 hours prior to a Regular Meeting and 24 hours prior to a Special Meeting. A hard copy of any agenda report may be requested by contacting the City Clerk’s Office at (408) 615-2220, email clerk@santaclaraca.gov or at the public information desk at any City of Santa Clara public library.
RECOMMENDATION
Recommendation
1. Adopt a Resolution authorizing the filing of an application for $1,754,000 in funding assigned to the MTC, committing the necessary matching funds, and stating assurance to complete the Santa Clara Uncontrolled Crosswalk Phase 2 project;
2. Authorize the City Manager to execute all documents related to accepting the Housing Incentive Pool funding for the Santa Clara Uncontrolled Crosswalk Phase 2 project funded in the Streets and Highways Capital Fund in final forms approved by the City Attorney;
3. Authorize the City Manager to negotiate and execute an amendment to the agreement with Kimley-Horn and Associates, Inc. as needed, subject to a total maximum not-to-exceed compensation limit of $400,000 for the agreement and budget appropriations, in final forms approved by the City Attorney; and
4. Approve FY 2025/26 budget amendments in the Streets and Highways Capital Fund:
a. Increase the Other Agencies Revenue estimate by $1,754,000 to recognize Housing Incentive Pool funding and increase the Uncontrolled Crosswalks Improvements project appropriation by $1,754,000 (five affirmative Council votes required to appropriate additional revenue); and
b. Decrease the Uncontrolled Crosswalks Improvements project funded by gas tax by $1,000,000 and increase the Unrestricted Ending Fund Balance by $1,000,000 (majority affirmative Council votes required).
Staff
Reviewed by: Craig Mobeck, Director of Public Works
Approved by: Jovan D. Grogan, City Manager
ATTACHMENTS
1. Project Location Map
2. Resolution