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 am...
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