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HomeMy WebLinkAbout06/21/2005, C14 - ADOPT RESOLUTION AUTHORIZING THE CAO TO SUBMIT STATE TRANSPORTATION ENHANCEMENT ACTIVITY GRANT FOR o council m0,a June 21.2005 j ac,Enaa izEpoin CITY OF SAN LUIS OBISPO FROM: Jay Walter,P.E. —Public Works Director Prepared By: Timothy Scott Bochum,P.E. —Deputy Director SUBJECT: ADOPT RESOLUTION AUTHORIZING THE CAO TO SUBMIT STATE TRANSPORTATION ENHANCEMENT ACTIVITY GRANT FOR THE SPRR FREIGHT WAREHOUSE REHABILITATION PROJECT—PHASE lI CAO RECOMMENDATION Adopt resolution authorizing the CAO to submit a grant for 2006 State Transportation Enhancement Activity Funds for the SPRR Freight Warehouse Rehabilitation Project—Phase 11. DISCUSSION Each year various grants become available for transportation purposes. City policy requires that the Council review grant submittals that are sought by the City for these purposes. During this difficult fiscal time it is essential that the City take advantage of any outside funding source to assist in delivering capital improvements. Unfortunately, current State financing problems have led to the delay in many State funding opportunities therefore most grants that will become available will be from Federal grant sources and carry with them Federal requirements. At this time the State is requesting grant submittals for Transportation Enhancement Activity (TEA) funds. These funds are limited in scope and can only be used for a distinct portion of transportation services. These include bicycle and pedestrian improvements, street enhancements, historical transportation building rehabilitation, transportation museums and historical preservation. There are two TEA funding pots in California. One is allocated at the regional level at San Luis Obispo Council of Government (SLOCOG). This pot of funding has been accessed by the City to construct Phase I improvements at the SPRR Freight Warehouse building, install median improvements along Los Osos Valley Road and build bicycle projects within the city. These types of projects do well at the local level but would not do very well at the State level. The State pot allocates money on a State-wide competitive basis. Therefore any project submitted should meet many of the criteria of the grant fund program. Of the various City projects we are working on, the SPRR Freight Warehouse and County Railroad Museum project appears to have the best chance of competing successfully at the State level. It meets three of the funding criteria where many of our other projects only meet one. Because there are not many Railroad Museum projects within California it is hoped that the application competes well. The proposed grant. application is a request to complete the entire rehabilitation and upgrade of the structure to allow the Railroad Museum to begin tenant improvements. e1q_1 2005 Transportation Grants Page 2 FISCAL IMPACT The grant request is in the amount of $1,100,000 and carries a local match of 20%. The grant may not be funded in total but a worst case scenario would mean a $220,000 match requirement. The City has already programmed $125,000 in Community Development Block Grants for the project and we have approximately $180,000 in regional TEA monies to be used in Phase II. We are proposing to use these two amounts as the local matching funds. However, if the regional TEA moneys are not approved for use as a local match, there would be the need to use General Fund reserve (or some other local fund) in an amount of$95,000 to access the funds. While this would mean dipping into the fund reserve it would be an excellent return on the investment (80/20) and achieve a project that otherwise is a long way from ever getting done. As an option, if no or an inadequate local match is available at the time the grant is awarded, the City could simply return the grant award to the State. CONCURRENCE The Finance Director has reviewed the fiscal impacts to the General Fund and concurs with the recommendation. ALTERNATIVES Do not submit grant. Council could chose to not solicit grant funding for this project. However, since there is currently a limited funding ability to deliver this project, unless outside funding is secured, it may never be completed or will be significantly delayed. ATTACHMENTS Attachment 1 —Resolution I-Council Agenda Reports\2005 agenda reports\Transportation and Development Review (Bochum)\Traffic Engineering(Senor)\2005 ITIP TEA Grant.DOC ATTACHMENT 1 RESOLUTION NO. (2005 Series) A RESOLUTION OF THE COUNCIL OF THE CITY OF SAN LUIS OBISPO DIRECTING THE CAO TO SUBMIT GRANT FUNDING APPLICATIONS FOR STATE TRANSPORTATION ENHANCEMENT FUNDS WHEREAS, the City Of San Luis Obispo actively pursues funding for programs and projects to augment delivery of needed services to the community; and WHEREAS, various grant sources become available during the year for miscellaneous proposes including transportation safety and enhancement; and WHEREAS, the City Council finds that implementation of this projects described below will improve transportation in San Luis Obispo, consistent with the community's General Plan, Circulation Element and Railroad District Plan. NOW THEREFORE BE IT RESOLVED by the Council of the City of San Luis Obispo as follows: Section 1. The City Council directs the City Administrative Officer (CAO) to submit a State Transportation Enhancement grant application to SLOCOG and Caltrans and to enter into any subsequent cooperative agreements with that agency for the following project: SPRR Freight Warehouse Rehabilitation Project—Phase 11($1,405,000 total cost). Section 2. The City Council hereby certifies that it will provide a minimum twenty percent (20%)local funding match for the project described in Section 1. Section 3. The City Council hereby certifies that it maintain said project, either directly or through a third party agreement with the San Luis Obispo Railroad Museum.. On motion of seconded by and on the following roll call vote AYES: NOES: ABSENT: the following resolution was adopted this 17`h day of May, 2005. �/y 3 Page 2—Resolution No. David F Romero, Mayor ATTEST: Audrey Hooper,City Clerk Jonath ell, City Attorney