REPORT TO COUNCIL
SUBJECT
Title
Accept $811,845 of the Fiscal Year 2025/26 Transportation Development Act Article 3 Grant Funds and Approve Budget Modification No. 7
Report
GRANT SUMMARY
Transportation Development Act (TDA) Article 3 funds are a funding source created by State legislation and processed through the Metropolitan Transportation Commission (MTC). The funding consists of a portion of sales tax revenue that is allocated to local agencies for designated bicycle and pedestrian projects. For FY 2025/26, $811,845 is guaranteed to the City for eligible projects.
At its June 17, 2025 meeting, the City Council adopted Resolution No. 1300-25 (Attachment 1) to authorize the filing of an application to MTC to allocate the full amount of $811,845 to supplement the Evelyn Avenue Multi-Use Trail project construction phase (RTC No. 25-0267) (Attachment 2).
On Oct. 22, 2025, MTC authorized the disbursement of $811,845 from the TDA Article 3 fund to the project (Attachment 3). The funds will supplement the construction phase of the project. The disbursement will be made on a reimbursement basis. Eligible costs must be incurred on or before June 30, 2028, and all invoices must be submitted to MTC by Aug. 31, 2028, for funds to be drawn down by Sept. 30, 2028.
EXISTING POLICY
Council Policy 7.1.5 Grants, Donations, Contributions and Sponsorships:
The City Manager may apply for grants of any dollar amount, but shall notify the Council when grants are being pursued. Council approval of a budget modification to appropriate grant monies is required before funds can be expended by staff. Such a budget modification shall include the use to which the grant would be placed; the objectives or goals of the City which will be achieved through use of the grant; the local match required, if any, plus the source of the local match; any increased cost to be locally funded upon termination of the grant; and the ability of the City to administer the grant. For grants under the amount of $100,000 that do not have any external reporting requirements or any local match requirement, Council approval of a budget modification is not required. The City Manager is authorized to accept and administratively appropriate the grant funds.
Pursuant to Sunnyvale Charter Section 1305, at any meeting after the adoption of the budget, the City Council may amend or supplement the budget by motion adopted by affirmative votes of at least four members so as to authorize the transfer of unused balances appropriated for one purpose to another, or to appropriate available revenue not included in the budget.
ENVIRONMENTAL REVIEW
The project proposed to be funded by this action will be exempt from review under the California Environmental Quality Act (CEQA) under a Class 1 CEQA exemption for minor alteration of existing streets, sidewalks and similar facilities involving negligible expansion of existing use (CEQA Guidelines 15301).
FISCAL IMPACT
Budget Modification No. 7 has been prepared to appropriate the FY 2025/26 TDA Article 3 Grant funds in the amount of $811,845 to Project 835980 - Evelyn Avenue Multi-Use Trail.
Budget Modification No. 7
FY 2025/26
|
|
Current |
Increase/ (Decrease) |
Revised |
|
Transportation Development Act Fund |
|
|
|
|
Revenue |
|
|
|
|
TDA Article 3 FY 2025/26 Allocation |
$0 |
$811,845 |
$811,845 |
|
|
|
|
|
|
Expenditure |
|
|
|
|
Project 835980 - Evelyn Avenue Multi-Use Trail |
$3,292,258 |
$811,845 |
$4,104,103 |
PUBLIC CONTACT
Public contact was made by posting the Council meeting agenda on the City's official-notice bulletin board at City Hall, at the Sunnyvale Public Library and in the Department of Public Safety Lobby. 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 Ave. (during normal business hours), and on the City's website.
RECOMMENDATION
Recommendation
Accept $811,845 of the Fiscal Year 2025/26 Transportation Development Act Article 3 Grant Funds and Approve Budget Modification No. 7 to Appropriate to Project 835980 - Evelyn Avenue Multi-Use Trail Project.
JUSTIFICATION FOR RECOMMENDATION
The completion of the project, a new Class I multi-use trail on the north side of West Evelyn Avenue between South Bernardo Avenue and Mathilda Place, will support the circulation and safety goals and policies identified in the City’s Active Transportation Plan, Vision Zero Plan and Roadway Safety Plan.
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: Kevin Chen, Senior Traffic Engineer
Reviewed by: Lillian Tsang, Principal Transportation Engineer
Reviewed by: Chip Taylor, Director of Public Works
Reviewed by: Matthew Paulin, Director of Finance
Reviewed by: Sarah Johnson-Rios, Assistant City Manager
Approved by: Tim Kirby, City Manager
ATTACHMENTS
1. Resolution No. 1300-25
2. Report to Council 25-0267, June 17, 2025 (without attachments)
3. FY 2025/26 TDA Article 3 Grant Disbursement Authorization by MTC Director