REPORT TO BICYCLE AND PEDESTRIAN ADVISORY COMMISSION
SUBJECT
Title
Recommend to City Council a Project for the Application of Transportation Development Act Article 3 Funding for Fiscal Year 2026/27
Report
BACKGROUND
Transportation Development Act (TDA) Article 3 is a source of funding created by State legislation and processed through the Santa Clara Valley Transportation Authority and Metropolitan Transportation Commission (MTC) that annually returns sales tax revenues designated for bicycle and pedestrian projects to local agencies.
The eligibility requirements to receive funds in the FY 2026/27 funding cycle are outlined in the MTC Resolution No. 4108, “Transportation Development Act, Article 3, Pedestrian/Bicycle Projects, Policies and Procedures” (Attachment 2). The resolution requires each city to have a Bicycle and Pedestrian Advisory Commission (BPAC) review and prioritize TDA Article 3 bicycle and pedestrian projects.
The City has $304,947 for reimbursement of eligible projects for FY 2026/27.
The City Council is scheduled to consider this item at their June 16, 2026 meeting.
EXISTING POLICY
• Council Policy Manual 7.2.19, subsection 2.H(II)(b)i: Boards and Commissions, Bicycle and Pedestrian Advisory Commission
• Resolution No. 793-16 Complete Streets Policy (and Resolution No. 896-18 amending Resolution No. 793-16)
• General Plan, Chapter 3, Land Use and Transportation Element, LT-3: An Effective Multimodal Transportation System
ENVIRONMENTAL REVIEW
The projects funded by this action are exemption from review under the California Environmental Quality Act (CEQA) as noted in the following discussion.
DISCUSSION
The determination of TDA Article 3 projects for FY 2026/27 is based on the review of TDA eligibility requirements, consideration of the Active Transportation Plan (ATP), Vision Zero Plan, Roadway Safety Plan, resident requests, and Commissioners’ and staff’s knowledge of bicycle and pedestrian facility priority needs in the City. Based on the discussion at the January 15, 2026 and February 19, 2026 BPAC meetings and further staff research, the following five (5) potential candidate projects are identified for TDA Article 3 funding for FY 2026/27:
1. Rectangular Rapid Flashing Beacons (RRFB) and Curb Extensions
Project Description: Staff received requests from residents to provide crosswalks at the intersections of Sunset Avenue & Washington Avenue and California Avenue & Frances Street. Staff performed a crosswalk warrant analysis to determine that a crosswalk is warranted for both locations, one crossing Washington Avenue and one crossing California Avenue. See Attachment 3 for project locations.
Intersection of Sunset Avenue & Washington Avenue:
Although the ATP does not identify pedestrian improvements at this location, it is adjacent to Washington Park, where many residents would cross to access the park. Additionally, this project reflects staff’s responsiveness to the local community who have been vocal about the desire to include infrastructure to improve pedestrian conditions at this location. Staff recommends that a crosswalk should be enhanced with an RRFB, a pedestrian-activated warning device, to alert approaching traffic that a bicyclist or pedestrian is trying to cross the street. This enhancement is recommended due to the proximity to Washington Park and multiple resident requests. Staff proposes that curb extensions also be included on Washington Avenue, if feasible, which would visually and physically narrow the roadway, shorten the crossing distance for pedestrians, reduce vehicle turn speeds, and improve visibility of pedestrians waiting to cross the intersection.
Intersection of California Avenue & Frances Street:
This intersection is part of a direct path to the Sunnyvale Caltrain Station. The ATP identifies pedestrian improvements at this location including curb ramps to meet ADA standards and to evaluate intersection lighting. On February 3, 2026, Council approved the concept plans for the Sunnyvale Caltrain Station Pedestrian-Bicycle Access Study (DPW 20-02), which also includes a marked crosswalk on the eastern leg of this intersection enhanced with an RRFB.
Approximate Cost: $150,000 (Design), $600,000 (Construction)
This project qualifies for a Class 1 CEQA exemption (CEQA Guidelines 15301) for minor alteration of existing streets, sidewalks, and similar facilities involving negligible expansion of existing use.
2. Implement Crossing Improvements at the Intersection of Gail Avenue & Iris Avenue
Project Description: The Gail Avenue & Iris Avenue intersection was identified as a high priority Safe Routes to School project in the ATP. Located within a residential neighborhood near Braly Elementary School and Ponderosa Park, this intersection is 4-way stop-controlled; both streets consist of one lane of traffic in each direction with parking on both sides of the roadway. The ATP recommended upgrading all four existing crosswalks to high visibility crosswalks, installing directional ADA compliant curb ramps, and installing curb extensions at all four corners of the intersection. See Attachment 4 for project location.
Approximate Cost: $150,000 (Design), $415,000 (Construction)
This project qualifies for a Class 1 CEQA exemption (CEQA Guidelines 15301) for minor alteration of existing streets, sidewalks, and similar facilities involving negligible expansion of existing use.
3. Design Phase of Mathilda Bike Lane Project
Project Description: On October 21, 2025, City Council selected Alternative 1 to remove the southbound travel lane and install Class IIB buffered bicycle lane on the west side of Mathilda Avenue between Ahwanee-Almanor and Maude avenues. This study was completed to do advance planning for ATP bicycle improvements that needed additional studies. This project would implement improvements identified in the ATP, approved by City Council, and help close a bicycle network gap on Mathilda Avenue. See Attachment 5 for project limits.
Approximate Cost: $100,000 (Design)
This project qualifies for a Class 4 CEQA Exemption (CEQA Guidelines 15304(h)) for the creation of bicycle lanes on existing right-of-way.
4. Quick Build Projects to Implement ATP
Project Description: The ATP Safe Routes to School (SRTS) chapter identifies intersection improvements near public schools. The City implemented quick build improvements including curb extensions with delineators and high visibility crosswalks at various ATP SRTS locations in previous years. To continue implementing the ATP via quick build methods and devices, staff identified two locations (not yet implemented) to install curb extensions with delineators and high visibility crosswalks near elementary schools. See Attachment 6 for project locations.
• Cupertino Middle School - Kennewick Drive & Helena Drive
• Ponderosa Elementary School - Henderson Avenue & Lily Avenue
Approximate Cost: $50,000 (Design), $160,000 (Construction)
This project qualifies for a Class 1 CEQA exemption (CEQA Guidelines 15301) for minor alteration of existing streets, sidewalks, and similar facilities involving negligible expansion of existing use.
5. Improve Pedestrian Access to Fair Oaks Park
Project Description: BPAC suggested implementing pedestrian access improvements to Fair Oaks Park. The ATP identifies pedestrian improvements at two locations near Fair Oaks Park: (1) the intersection of Wolfe Road & Maude Avenue (already constructed) and (2) the intersection of Fair Oaks Avenue & Wolfe Road. Both of these intersections provide direct access to Fair Oaks Park. See Attachment 7 for project locations.
• Intersection of Wolfe Road & Maude Avenue*
o Eliminated the channelized eastbound right turn lane
o Constructed control crossing for Wolfe Road.
*These improvements have already been implemented.
• Intersection of Fair Oaks Avenue & Wolfe Road
o Consider eliminating the channelized eastbound right turn lane from Fair Oaks Avenue to Wolfe Road.
o Evaluate intersection lighting and illumination
o Consider converting striping at median islands to curb or vertical delineation
Since the not yet constructed improvements require some planning study, TDA Article 3 Funding is not eligible for the planning phase.
The intersection of Fair Oaks Avenue and Balsam Avenue also provides pedestrian access to Fair Oak Park. This location was not identified in the ATP; however, it is part of the Council Priority Project SU-15 Fair Oaks Avenue Signalization at Three Locations. This project is examining the installation of a traffic signal, traffic circle, or High-intensity Activated crossWalK (HAWK) beacon at this intersection and two other locations along Fair Oaks Avenue. The identified improvements will be studied as part of Council Priority Project SU-15. Once SU-15 is complete, the City can then consider utilizing TDA Article 3 Funding for the design and/or construction phase to implement the study’s findings. This would require banking this year’s funding or utilizing a future TDA Article 3 funding allocation. See Attachment 7 for project locations.
Project number 3, Design Phase of Mathilda Bike Lane Project, is staff’s recommendation for this year’s TDA Article 3 funds. This project is closely aligned with the ATP goals of implementing a connected bicycle network and provides a much needed bike facility in a gap in a highly traveled commute corridor. Once implemented, Mathilda Avenue will have continuous bicycle lanes from Java Drive to Washington Avenue in both directions. It also meets BPAC’s preference for using the full allotment for this year as opposed to banking funds over multiple years for a larger project cost. The other project ideas are either close to or more than the full amount for this cycle and may require banking to fund the full project or require planning first so are not eligible this cycle.
FISCAL IMPACT
TDA Article 3 fund is a program that reimburses cities for the costs incurred from selected bicycle and pedestrian projects. No local matching funds are required for TDA Article 3 funded projects. The City will have $304,947 in TDA Article 3 funds from the City’s guaranteed fund apportionment for FY 2026/27. TDA Article 3 funds are accounted for in a Special Revenue Fund. As the allocation is annual and subject to review, the City’s budget does not include any anticipated funding in its planning process. Therefore, this funding provides resources for projects that might otherwise not be completed.
TDA funding does not cover ongoing maintenance costs associated with any of the candidate projects.
Council can choose to select one or more projects to implement using TDA Article 3 funds and/or bank the remaining funds for future use. If Council chooses to select a combination of projects that has a higher budget than the available funding, closing the gap will require Council approval of a budget modification in the future, or inclusion of additional funding in the FY 2027/28 Recommended Budget. BPAC or Council can also choose to bank the entire amount to accumulate a larger amount of funding for future use; however, there is an expenditure deadline of up to four years from when it was first allocated to the City. All of the $304,947 can be banked for another four years before the four-year deadline. There are no banked funds available from previous cycles at this time.
PUBLIC CONTACT
Public contact was made by posting the meeting agenda on the City's official-notice bulletin board at City Hall. In addition, the agenda and this report are available at the City Hall reception desk located on the first floor of City Hall at 456 W. Olive Avenue (during normal business hours), and on the City's website.
ALTERNATIVES
1. Recommend to City Council to use $100,000 of Transportation Development Act Article 3 Funding for Fiscal Year 2026/27 to fund Project No. 3, Design Phase of the Mathilda Bike Lane Project and bank the remainder of the funding ($204,947) for future use.
2. Recommend to City Council to use the Transportation Development Act Article 3 FY 2026/27 Funding for a project listed in this report other than Project No. 3 or for a combination of projects other than Project No. 3.
3. Recommend to City Council to use the Transportation Development Act Article 3 Funding for a project not listed in this report.
4. Recommend to City Council to bank the entire allocation of $304,947 for future use.
RECOMMENDATION
Recommendation
Alternative 1: Recommend to City Council to use $100,000 of Transportation Development Act Article 3 Funding for Fiscal Year 2026/27 to fund Project No. 3, Design Phase of the Mathilda Bike Lane Project and bank the remainder of the funding ($204,947) for future use.
JUSTIFICATION FOR RECOMMENDATION
This improvement aligns with the goals in the ATP, which aims to improve bicycle network connectivity and promote sustainable transportation options. By completing final design using the TDA funds, it advances an ATP priority project and gets it “shovel ready” and better positioned to obtain grant funding for construction. Once final design is complete, staff could also explore the option to include this design to a future repaving or slurry seal City project, which would reduce the construction cost. Once implemented, the bicycle lanes on southbound Mathilda Avenue would be continuous from Java Drive to Washington Avenue, filling in a gap in the City’s bicycle network along Mathilda Avenue.
Levine Act
LEVINE ACT
The Levine Act (Gov. Code Section 84308) prohibits city officials from participating in certain decisions regarding licenses, permits, and other entitlements for use if the official has received a campaign contribution of more than $500 from a party, participant, or agent of a party or participant in the previous 12 months. The Levine Act is intended to prevent financial influence on decisions that affect specific, identifiable persons or participants. For more information see the Fair Political Practices Commission website: www.fppc.ca.gov/learn/pay-to-play-limits-and-prohibitions.html
An “X” in the checklist below indicates that the action being considered falls under a Levine Act category or exemption:
SUBJECT TO THE LEVINE ACT
___ Land development entitlements
___ Other permit, license, or entitlement for use
___ Contract or franchise
EXEMPT FROM THE LEVINE ACT
___ Competitively bid contract*
___ Labor or personal employment contract
___ Contract under $50,000 or non-fiscal
___ Contract between public agencies
_X_ General policy and legislative actions
* "Competitively bid" means a contract that must be awarded to the lowest responsive and responsible bidder.
Staff
Prepared by: Angela Wong, Transportation Engineer
Reviewed by: Angela Obeso, Transportation and Traffic Manager
Reviewed by: Dennis Ng, Assistant Director, Public Works
Reviewed by: Ramana Chinnakotla, Interim Director, Public Works
Reviewed by: Connie Verceles, Deputy City Manager
Approved by: Tim Kirby, City Manager
ATTACHMENTS
1. Reserved for Report to Council
2. MTC Resolution No. 4108
3. Rectangular Rapid Flashing Beacons (RRFB) & Curb Extensions Project Location
4. Crossing Improvements at Gail Avenue and Iris Avenue Project Location
5. Design Phase of Mathilda Bike Lane Project Limits
6. Quick Build Projects to Implement ATP Project Locations
7. Improve Pedestrian Access to Fair Oaks Park Project Locations