REPORT TO COUNCIL
SUBJECT
Title
Adopt a Resolution to Authorize the City Manager to Execute a Master Agreement and all Grant-Related Documents for State-Funded Transit Projects
Report
BACKGROUND
At the March 26, 2024 Council meeting (RTC No. 24-0026), City Council received information from staff on potential shuttle options, authorized the City Manager to apply for microtransit grants with a 50% maximum local match, directed staff to pause work on Study Issue DPW 23-06 until Environmental Protection Agency or Transit and Intercity Rail Capital Program (TIRCP) Grants were announced, and to discuss potential partnerships with the Fremont Union High School District, the Foothill De Anza College District, and the business community to share in the funding of a micro transit program.
In July 2024, staff submitted a grant application to the California State Transportation Agency for the Sunnyvale Zero-Emission First-Mile Last-Mile Microtransit Project. The project will utilize nine (9) zero-emission vehicles operating Monday to Friday from 7 a.m. to 9 p.m., and Saturday to Sunday from 9 a.m. to 5 p.m., covering the entire city. The total project cost is estimated at $8,358,000 to operate the citywide microtransit service for five (5) years, for which staff requested $4,179,000 in grant funding to be matched by a $4,179,000 (or 50%) local match by the City. On October 23, 2024, staff was notified by the State that the City’s grant application was successful, resulting in an award of $4,179,000 covering 50% of the total project cost, as requested (Attachment 1).
To be eligible for this funding, the California Department of Transportation (Caltrans), the agency managing the TIRCP grant, requires local jurisdictions adopt a Resolution (Attachment 2) prior to funding allocation, to authorize the City Manager to execute the Master Agreement (Attachment 3) and all grant-related documents for State-funded transit projects.
EXISTING POLICY
Council Policy 7.1.5 Grants, Donations, Contributions and Sponsorships
• Policy Statement 2. The city manager may apply for grants of any dollar amount, but shall notify the Council when grants are being pursued pursuant to Council Policy 7.1.1 (Fiscal - Long Range Goals and Financial Policies), B.4. (Grants and Intergovernmental Assistance).
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(b)(4) as it is funding mechanisms for projects that will be appropriately reviewed under CEQA prior to approval.
DISCUSSION
For the City to receive the grant funding, Caltrans will forward the funding allocation request to the California Transportation Commission for consideration at its October 2025 meeting. Upon approval, the City will work with Caltrans to execute all necessary agreements to encumber the funds. After the execution of such agreements, staff will start the process to onboard the microtransit service operator for an anticipated Fall 2026 service launch.
FISCAL IMPACT
There is no fiscal impact related to the adoption of the resolution. Once approved by the State, staff will return to Council to accept and appropriate the grant funds and local match requirement.
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 Avenue (during normal business hours), and on the City's website.
RECOMMENDATION
Recommendation
Adopt a Resolution to Authorize the City Manager to Execute a Master Agreement and All Grant-Related Documents for State-Funded Transit Projects
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: Joshua Llamas, Transportation Planner
Reviewed by: Lillian Tsang, Principal Transportation Engineer
Reviewed by: Angela Obeso, Transportation and Traffic Manager
Reviewed by: Chip Taylor, Director, Public Works
Reviewed by: Sarah Johnson-Rios, Assistant City Manager
Approved by: Tim Kirby, City Manager
ATTACHMENTS
1. TIRCP Seventh Round Selected Projects - Project Detail Summary
2. Draft Resolution
3. Master Agreement for CalSTA TIRCP