PURPOSE

The purpose of this report is to request City Council authorization to apply for State funding available under Article 3 of the Transportation Development Act (TDA), SB 821.

BACKGROUND

The TDA funds are administered by the Los Angeles County Metropolitan Transportation Authority (MTA). Funding is available to local jurisdictions according to a formula based on population. These funds may be used for bicycle and pedestrian facilities, including bikeway commuter paths, bicycle commuter parking, sidewalk wheelchair ramps, Americans with Disabilities Act required signage, and sidewalk repair and construction. The funds can also be used for engineering expenses and right-of-way acquisition to the aforementioned types of improvements. TDA funds may also be used to provide the local match to bicycle and pedestrian grant applications.  

Local agencies may only draw down local funds that will be fully spent or encumbered on eligible projects before the end of the fiscal year (June 30) in which they were allocated. TDA Article 3 Funds are not automatically distributed to agencies or placed on reserve. Each fiscal year each agency must designate the disposition of its TDA Article 3 allocations by submitting a claim form and identify which projects will be funded or for which the funds will be reserved.

In the past, these funds have been used to assist in the development and construction of various bikeway and pedestrian projects, such as the Chandler Bikeway Class I Project ($192,200), Beachwood Bikeway Class II Project ($29,500), Hollywood Way Bikeway Class II Project ($30,786), Safe Routes to School Cycle 5 ($8,200), and Safe Routes to School Cycle 6 ($22,380). Before the Chandler Bikeway project, Public Works used these funds for the construction and repair of public sidewalks and pedestrian ramps. 

ANALYSIS

Staff is requesting that the Council authorize the drawdown of TDA Article 3 Funds from three prior funding periods. In FY 2002-2003 staff allocated 2002-2003 TDA funds for the Chandler Bikeway Project. At the end of this project, a small TDA fund balance of $4,057 remained for 2002-2003 fiscal year. Since agencies are not allowed to have a fund balance at the end of any fiscal year that TDA funds are drawdown for projects, any unspent funds remaining after the end of the fiscal year must be returned to MTA to be placed on reserve under the fiscal year in which they were originally allocated. Therefore, the remaining $4,057 fund balance was returned to MTA to be placed on reserve for the City. However, in addition to the one year limit to reserve annually allocated TDA funds, there is also a longer three year time limit to expend reserved TDA funds. Thus, the remaining $4,057 fund balance is subject to lapse on June 30, 2007. Any remaining unspent balance at the end of the fiscal year must be returned to MTA and cannot be re-allocated. In order to expend the remaining funds placed on reserve before the end of the fiscal year, staff is requesting Council authorization to drawdown and expend the remaining $4,057 from FY 2002-2003 TDA reserve allocation. Staff is proposing to allocate the FY 2002-2003 TDA reserved funding to pay for a portion of the design cost associated with the Victory Boulevard Class II Bikeway Project, approved by Council on October 3, 2006.  

Staff is also requesting Council authorization to apply for the City�s share of their TDA funds of $55,062 from FY 2005-2006 to be placed on reserve. At this time staff is also requesting Council authorization to drawdown a portion of these funds to be applied to the City�s required 10% local match portion of the Victory Boulevard Class II Bikeway Project for the FY 2006-2007 Caltrans Bicycle Transportation Account (BTA) grant. Council authorized staff, on October 3, 2006 to enter into a BTA Project Agreement between the City and Caltrans to construct this project in the amount of $480,900 with a local match requirement of $48,090. At that time staff had indicated that the required 10% local match portion would be funded by the TDA Article 3 Funds. Staff is proposing to use FY 2005-2006 TDA allocation to provide for the local match portion to the Council authorized 2006-2007 BTA grant that the City has already received.

The Victory Boulevard Class II Bikeway project will further expand the City�s developing bicycle network and provide additional connectivity between major destinations. The project would further the overall goal of the Bicycle Master Plan, (reviewed and adopted by Council on December 9, 2003) to expand bicycling for the purpose of commuter and utilitarian trips. The project would provide a bicycle-friendly connection across the Interstate 5 and UP/SCRRA Metrolink tracks, a major barrier to bicycle travel, and connect the Metrolink Station and Downtown with the western half of the City. The project would also connect the Victory Boulevard lanes to the Chandler Bike Path, as well as the Third Street bike lanes.

Staff is also requesting Council authorization to apply for the City�s share of their TDA funds of $60,960 from FY 2006-2007, to be placed on reserve. While these funds have not been specifically programmed, staff proposes to use these funds to provide for the City�s local match portions for future awarded pedestrian and bicycle grants or to implement projects identified in the Bicycle Master Plan. Staff also proposed to use the remaining FY 2006-2007 TDA allocation not spent on the Victory boulevard Class II Bikeway project to provide funding for future related pedestrian and bicycle facility projects. However, in a separate budget action, staff will request authorization to drawdown TDA funds to either be applied to meet the required local match portion for future awarded grants or to fund the construction of future proposed pedestrian and bicycle related projects.

Article 3 Funds are not automatically distributed to the local jurisdictions. Before the end of each fiscal year a jurisdiction must either request the drawdown of its Article 3 Funds or reserve the funds for future use by filing a TDA Article 3 Bicycle and Pedestrian Funds Local Claim Form. The form also identifies the project to be funded. Funds may be drawdown once a project contract has been awarded. As described above, staff is recommending that Council drawdown a portion of the City�s TDA funds for projects that are already approved and will begin construction within the fiscal year. The remaining funds would be held in reserve for future projects that will be awarded within the next three years. This combined approach ensures that none of these funds are forfeited to MTA.  

Pros and Cons

-         Council can apply for the City�s annual TDA allocation and place the FY 2005-2006 and FY 2006-2007 funding on reserve and authorize to drawdown and expend the money within the three year allocation period. This funding can be appropriated to fund recommended projects noted in this report and further the overall goal of the Bicycle Master Plan.       

-         Council can determine not to use the City�s annual TDA allocations at this time; however, if an authorization to drawdown FY 2002-2003�s TDA allocation is not approved, since 2002-2003 funds are subject to laps, by June 30, 2007 the City will lose these funds and be required by MTA to return these funds. If FY 2005-2006 and FY 2006-2007�s TDA allocations are not placed on reserve, staff cannot request the drawdown of these funds to appropriate these funds to current or future pedestrian and bicycle related projects. Again if funding is not expensed within a three year allocation period the funds will be subject to be returned to MTA.

-         The identified TDA allocation in this report can be used for other bikeway and pedestrian related projects other than what staff has recommended as directed by Council. However, at the October 3, 2006 Council meeting, Council accepted the 2006-2007 BTA grant which is funding the Victory Boulevard Class II Bikeway Project. Staff had identified that the required 10% local match for the 2006-2007 BTA grant would be funded from the City�s TDA allocations. If TDA funds were not used, an alternative funding source to provide the City�s local match requirement would need to be identified. Alternatively, funding sources include General Fund or Proposition C Local Return Funds. Staff does not currently recommend use of Proposition C Funds because this account is deficit spending. Currently this account funds the operating costs associated with the BurbankBus expansion. 

FISCAL IMPACT

If the Council authorizes the submittal of the TDA Article 3 Bicycle and Pedestrian Funds Local Claim Form, it will provide a revenue source of $120,079 to be used toward the local match portion of the Victory Boulevard Class II Bikeway Project as well as other projects identified in the Bicycle Master Plan. Staff requests Council to appropriate $4,057 (FY 2002-2003), $55,062 (FY 2005-2006) and $60,960 (FY 2006-2007) from account 370.ND000.30004.0000.000000 General Capital Project Unappropriated Fund Balance Account to account 370.PW21A.70020.0000.000000 General Capital Projects Engineering-Construction Holding Account. 

RECOMMENDATION

Staff recommends that the City Council adopt the proposed resolution authorizing the Community Development Director to submit the claim form requesting the drawdown of the FY 2002-2003, drawdown and reserve FY 2005-2006, and to reserve FY 2006-2007 Transportation Development Act Article 3 Bicycle and Pedestrian Funds and their use as recommended in the report.  

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