REPORT TO COUNCIL
SUBJECT
Title
Authorize City Manager to Execute a First Amendment to the Agreement Between the City of Sunnyvale and the Valley Transportation Authority for the State Route 237/US 101/Mathilda Avenue Interchange Improvement Project
Report
BACKGROUND
In 2013, the City entered into a $4.0 million agreement with the Valley Transportation Authority (VTA) (Attachment 1) to complete the Project Initiation Document (PID), Project Alternatives/Environmental Document (PA/ED) and Plans, Specifications, and Estimates (PS&E) for the 237/101/Mathilda Interchange project. Over the last three years the City has been working with VTA staff to advance the project and narrow it down from three alternative designs to the preferred alternative (Attachment 2). A number of key milestones have already been completed. The Environmental Impact Report is scheduled for California Department of Transportation (Caltrans) approval on January 13, 2017 and the Project Approval scheduled for January 20, 2017. The project design has also been completed to the 35% design level and will be submitted to Caltrans in January 2017.
The original agreement was intended to provide enough funding to complete the design of the project, however the cost and schedule for the project extended beyond original planned expectations. This is due to two key reasons: 1) Different design alternatives had to be carried further than anticipated which required additional design and traffic analysis; and, 2) The environmental document was originally envisioned as a Mitigated Negative Declaration but was changed to an Environmental Impact Report.
EXISTING POLICY
General Plan Policy LT -5.1. Achieve an operating level-of-service (LOS) of “D” or better on the City-wide roadways and intersections, as defined by the functional classification of the street system.
General Plan Policy LT-5.5. Support a variety of transportation modes.
General Plan Policy LT-5.7. Pursue local, state and federal transportation funding sources to finance City transportation capital improvement projects consistent with City priorities.
General Plan Policy LT-5.8. Provide a safe and comfortable system of pedestrian and bicycle pathways.
ENVIRONMENTAL REVIEW
Caltrans is the lead agency under the California Environmental Quality Act (“CEQA”) and an Environmental Impact Report will be presented to the California Department of Transportation for adoption on January 17, 2017. Entering into the First Amendment to the Funding Agreement with VTA for planning and design activities is not a project which has the potential for causing a significant effect on the environment pursuant to California Environmental Quality Act ("CEQA") Guidelines section 15061(b)(3) and also does not constitute a “project” within the meaning of CEQA pursuant to CEQA Guidelines section 15378(a) as it has no potential for resulting in either a direct physical change in the environment, or a reasonably foreseeable indirect physical change in the environment.
DISCUSSION
The 237/101/Mathilda Interchange project has been identified as the City’s number one transportation priority and also as priority project to receive funding as part of the recently passed Measure B. The proposed First Amendment (Attachment 3) will add an additional $4.0 million and will allow the City and VTA to complete the following elements:
• Complete the final design documents
• Complete the bid documents
• Complete pre-construction utility relocations
• Complete the Right-of-Way (ROW) certification
Once this work is completed, the project will be in an excellent position to pursue Measure B funding to complete ROW acquisition (estimated at $4 million) and Construction (estimated at $28 million). Although all the requirements of Measure B funding have not been finalized by the VTA board, projects are anticipated to be required to provide local matching funds. The Amendment acknowledges that the VTA will consider the City’s contribution of $8,000,000 as “match for future funding sources towards the project.”
If this agreement is approved, and the additional $32 million are identified to complete the project, it is expected that the project would start utility relocation in mid-2017, start construction in early 2018, and complete construction in early 2019. These timeframes will be updated as the design phase progresses.
FISCAL IMPACT
The First Amendment will be funded through existing project funds. The Adopted Budget included $8.25 million in funding for Project 826890 - Mathilda/237/101 Interchange Project for FY 2016/17. Total available project balance through November 2016 totals approximately $10.0 million.
Funding Source
The funding source is the Traffic Impact Fee Sub-fund of the Capital Projects Fund.
PUBLIC CONTACT
Public contact was made by posting the Council agenda on the City's official-notice bulletin board outside City Hall, at the Sunnyvale Senior Center, Community Center and Department of Public Safety; and by making the agenda and report available at the Sunnyvale Public Library, the Office of the City Clerk and on the City's website.
ALTERNATIVES
1. Authorize the City Manager to Execute the First Amendment to the Agreement Between the City of Sunnyvale and the Valley Transportation Authority for the Mathilda Avenue/Route 237/Route 101 Interchange Improvement Project to extend the term until December 31, 2018, increasing the not to exceed amount of the City’s financial contribution from $4,000,000 to $8,000,000 and other minor amendments.
2. Do not Authorize the City Manager to Execute the First Amendment to the Agreement Between the City of Sunnyvale and the Valley Transportation Authority for the Mathilda Avenue/Route 237/Route 101 Interchange Improvement Project.
STAFF RECOMMENDATION
Recommendation
Alternative 1: Authorize the City Manager to Execute the First Amendment to the Agreement Between the City of Sunnyvale and the Valley Transportation Authority for the Mathilda Avenue/Route 237/Route 101 Interchange Improvement Project to extend the term until December 31, 2018, increasing the not to exceed amount of the City’s financial contribution from $4,000,000 to $8,000,000 and other minor amendments.
Staff
Prepared by: Manuel Pineda, Director, Public Works
Reviewed by: Timothy J. Kirby, Finance Director
Reviewed by: Kent Steffens, Assistant City Manager
Approved by: Deanna J. Santana, City Manager
ATTACHMENTS
1. Agreement
2. Preferred Alternative
3. First Amendment