REPORT TO COUNCIL
SUBJECT
Title
Approve Budget Modification No. 1 to Appropriate $499,664 in 2010 Measure B Vehicle Registration Fee Countywide Program Funds - Cycle 5, for Intelligent Transportation Systems from the Santa Clara Valley Transportation Authority, and Authorize the City Manager to Execute a Grant Funding Agreement and any Other Grant Related Documents
Report
GRANT SUMMARY
In 2010, Santa Clara County voters authorized a ten dollar ($10) increase in the Vehicle Registration Fee (VRF) for transportation-related projects. A portion of the $10 fee is used for a Countywide Intelligent Transportation Systems (ITS) Technology competitive grant. In October 2025, Valley Transportation Authority (VTA) issued a call for projects for the fifth (5th) cycle of the VRF Program for use on ITS projects. Staff submitted a grant application for the Mathilda Avenue/Sunnyvale-Saratoga Road and Homestead Road Smart Corridor ITS Upgrade project.
On May 7, 2026, the VTA Board awarded program funds to the Mathilda Avenue/Sunnyvale-Saratoga Road and Homestead Road Smart Corridor ITS Upgrade project, as shown in Attachment 1 to this report. The project proposes to upgrade video detection systems and deploy an adaptive traffic signal control system along the Mathilda Avenue/Sunnyvale-Saratoga Road corridor from Java Drive to Alberta Avenue and along the Homestead Road corridor from Hollenbeck Avenue to Belleville Way. This equipment will include video detection cameras at six (6) intersections currently lacking adaptive-ready detection infrastructure, and implementation of Econolite's Centracs Edaptive cloud-based adaptive signal system at 31 intersections along both corridors as shown in Attachment 2. VTA and the City intend to enter into a funding agreement as shown in Attachment 3 to this report.
EXISTING POLICY
Council Policy 7.1.5 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 $250,000 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.
This grant does not meet all of the criteria to be administratively appropriated by the City Manager; therefore, a budget modification is required. Grant funds from VTA have external reporting requirements and fall under the federal single audit guidelines.
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
This action does not constitute a “project” within the meaning of the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines Section 15378(b)(4) in that it is a fiscal activity that does not involve any commitment to any specific project which may result in a potential significant impact on the environment. In addition, the project funded by this action is exempt under CEQA Guidelines 15301(c) which applies to the minor alteration of existing streets, sidewalks, and similar facilities involving negligible or no expansion of existing use.
FISCAL IMPACT
Funding Source
2010 Measure B Vehicle Registration Fee Countywide Program Grant Funds
Required Local Match
None
Increased Cost To City Upon Grant Termination
Minimal. The grant includes a five year service agreement. After the five years, any incremental project-related routine maintenance and operating costs will be included in the City’s operating budget.
Budget Modification No. 1 has been prepared to appropriate 2010 Measure B Vehicle Registration Fee Countywide Program Fund - Cycle 5 in the amount of $499,664 to a new project - Mathilda Avenue/Sunnyvale-Saratoga Road and Homestead Road Smart Corridor ITS Upgrade. No matching funds or ongoing operating costs are required. All expenditures will be covered by the grant award appropriations.
Budget Modification No. 1
FY 2026/27
|
|
Current |
Increase/ (Decrease) |
Revised |
|
Vehicle Registration Fee (VRF) Fund |
|
|
|
|
Revenues |
|
|
|
|
2010 Measure B VRF Countywide Program Grant Funds |
$0 |
$499,664 |
$499,664 |
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|
|
|
|
|
Expenditures |
|
|
|
|
New Project - Mathilda Avenue/Sunnyvale-Saratoga Road and Homestead Road Smart Corridor ITS Upgrade |
$0 |
$499,664 |
$499,664 |
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|
|
|
|
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
Approve Budget Modification No. 1 to appropriate $499,664 in 2010 Measure B Vehicle Registration Fee Countywide Program Funds - Cycle 5, for Intelligent Transportation Systems from VTA, and authorize the City Manager to execute a Grant Funding Agreement and any other grant related documents.
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.
Prepared by: Esther Jung, Senior Traffic Engineer
Reviewed by: Angela Obeso, Transportation and Traffic Manager
Reviewed by: Ramana Chinnakotla, Interim Director, Public Works
Reviewed by: Matthew Paulin, Director, Finance
Reviewed by: Sarah Johnson-Rios, Assistant City Manager
Approved by: Tim Kirby, City Manager
ATTACHMENTS
1. Santa Clara Valley Transportation Authority Board Memorandum May 7, 2026
2. Map of Signalized Intersection Along Project Corridors
3. Santa Clara Valley Transportation Authority Funding Agreement