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$: CMA Block Grant Call for Projects - San Francisco …\CMA Block Grant\Call for Projects\CMA Block Grant Call for Projects.doc Page 1 of 8 Memorandum Date: 03.12.2010 To: Eligible Project$
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Memorandum

Date: 03.12.2010

To: Eligible Project Sponsors and Interested Parties

From: Ben Stupka, Senior Transportation Planner

Subject: CMA Block Grant Call for Projects

Applications Due to the Authority by 12:00 p.m. on Monday, May 3, 2010

1. INTRODUCTION

As the Congestion Management Agency (CMA) for San Francisco, the San Francisco County Transportation Authority (Authority) is issuing a call for projects for the Metropolitan Transportation Commission’s (MTC’s) new CMA Block Grant Program. MTC has created the CMA Block Grant program to encompass three core CMA programs, the county-share Transportation for Livable Communities Program (TLC), the Regional Bicycle Program (RBP) and the Local Streets and Roads Program (LS&R), which will allow for more flexibility and strategic project selection. This call for projects contains all the relevant information for submitting an application to the Authority for CMA Block Grant funds. The remaining sections of this memorandum are organized as follows:

1. Introduction 2. Schedule 3. Funds Available/Local Match 4. Eligible Applicants 5. Eligible Projects 6. Timely Use of Funds Requirements 7. Application Process 8. Screening and Prioritization Criteria 9. For More Information

2. SCHEDULE

The table below details our schedule for this call for projects. This call is part of MTC’s adopted framework for programming funds for Cycle 1 of the yet-to-be-developed six-year federal surface transportation act. Cycle 1 covers the first three fiscal years of the new act (Fiscal Year 2009/10 – Fiscal Year 2011/12).

Earliest Federal Fund Obligation Date: MTC is planning on updating the Transportation Improvement Program (TIP) in the fall of 2010. This means that the TIP will be shut down in the fall and no allocation of funds from the yet-to-be-developed six-year federal surface transportation act will be available during that time. The earliest date that a project sponsor can receive federal fund obligation (e.g. be granted an E-76) is December 14, 2010. This would likely allow funds to be allocated to the project sponsor in the winter of 2011. Please modify your project schedules accordingly.

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San Francisco County Transportation Authority Congestion Management Agency Block Grant Call for Projects Schedule

By March 12, 2010 Authority Releases Call for Projects March 18, 2010 100 Van Ness Ave., 26th Floor, 9:30 AM

Authority Technical Working Group meeting (Q & A on Call)

March 31, 2010 100 Van Ness Ave., 26th Floor, 10:00 AM

Application Workshop

May 3, 2010 100 Van Ness Ave., 26th Floor, 12:00 PM

CMA Block Grant Applications Due to Authority

May 17, 2010 DRAFT Staff Funding Recommendation – Sent to Project Sponsors

May 20, 2010 100 Van Ness Ave., 26th Floor, 9:30 AM

Authority Technical Working Group (Present Recommendation)

May 26, 2010 100 Van Ness Ave., 26th Floor, 6:00 PM Citizens Advisory Committee Meeting – ACTION

June 15, 2010 City Hall, Room 263, 10:30 AM Plans and Programs Committee Meeting - ACTION

June 22, 2010 City Hall, Room 250, 11:00 AM Authority Board - ACTION

July 19, 2010 Project sponsors submit to Authority: Routine Accommodations Checklist, Resolution of Local Support

July 30, 2010 CMA Block Grant Recommendations/Project List to

Due MTC August 30, 2010 Submit projects for the 2011 TIP through FMS to MTC October 27, 2010 Final 2011 TIP approved by MTC

December 14, 2010 Federal Highway Administration/Federal Transit

Administration approval of 2011 TIP, earliest granting of E-76 for Fiscal Year 2010/11 projects

February 1, 2011 Deadline to submit Fiscal Year 2010/11 Obligation Request Package to Caltrans

April 30, 2011 Fiscal Year 2010/11 Obligation Deadline

3. FUNDS AVAILABLE/LOCAL MATCH

Based upon a variety of fund allocation formulas, MTC has assigned San Francisco an overall block grant programming target of about $11.7 million, spread across the three block grant programs as shown in the table below. MTC’s guidelines permit up to 4% of the total block grant funds to be used for CMA planning activities related to the administration of the block grant program including planning and project delivery oversight and support. The figures below are the amounts available for projects, net of the 4% CMA planning activities.


Funds Available and Local Match Required for San Francisco Projects

Program Amount Local Match

Transportation for Livable Communities (TLC) County Share $2,990,400 20%

Regional Bicycle Program (RBP) $1,313,280 11.47%

Local Streets and Roads Program (LS&R) $7,435,200 11.47%

Total $11,738,880

MTC has proposed funding the block grant program with federal Congestion Mitigation and Air Quality (CMAQ) and Surface Transportation Program (STP) funds, both of which require local match (shown above).

There is no maximum grant amount, beyond the available funding amount set for each program, within the CMA Block Grant Program. The minimum grant amount established by MTC is $250,000 in light of the administrative requirements associated with implementation of federally-funded projects.

Block grant funds are available in Fiscal Years 2010/11 and 2011/12. The funds are to be programmed 50% in Fiscal Year 2010/11 and 50% in Fiscal Year 2011/12.

20% Flexible Programming: MTC’s guidelines permit up to 20% of each program’s funds to be flexed from one block grant program to another in order to recognize practical project delivery considerations and unique county priorities. The Authority has no predetermined amount of funds to be flexed; however, we would consider flexing some funds to enable funding of complete streets projects that don’t otherwise fit within the amount of funds available by program.

4. ELIGIBLE APPLICANTS Only public agencies are eligible to apply for CMA Block Grant funds. Public agencies may include, but are not limited to federal, state, and local agencies, and transit operators. The project sponsor is the agency that will administer the project. Since CMA Block Grant projects are federally funded, the project sponsor must be capable of entering into a master agreement with Caltrans for federally-funded transportation projects.

5. ELIGIBLE PROJECTS

The paragraphs below provide a brief description of each program’s intended purpose and project eligibility criteria.

TLC County Share Program: MTC’s TLC Program is intended to fund projects that support multimodal travel, more livable neighborhoods and the development of jobs and housing in existing town centers. Successful projects improve walking and bicycle access to public transit hubs and stations, major activity centers and neighborhood commercial districts as a way of fostering community vitality.

Examples of eligible projects funded in previous TLC funding cycles include the Renewed Valencia Streetscape and the Leland Avenue Streetscape Improvements. Both projects included, but were not limited to, corner bulb-outs, sidewalk extensions and widening, roadway re-striping, mid-block crossings, new street trees, bicycle parking and public art.

Consistent with policies established in the current regional transportation plan (Transportation 2035), for this next round of TLC funding, eligible projects must be located in a Association of Bay Area Government’s (ABAG’s) designated Priority Development Area (PDA). Attachment 1 contains a map showing PDAs in San Francisco.

RBP: The RBP is focused exclusively on bicycle projects. Eligible projects must result in additional


bicycle route mileage and must be on the Regional Bikeway Network. To accommodate changes made in local and regional bicycle plans since MTC adopted the regional bicycle network, MTC has identified a process for amending the network to add new corridors (see pp. 15-16 in Attachment 2). Projects purely intended for safety, recreation, or basic repair and rehabilitation are not eligible for RBP funds. LS&R: MTC has had a LS&R program for many, many years with very consistent guidelines. The focus of the LS&R program is pavement rehabilitation. For a project to be eligible it must be on the federal-aid system (arterial/collector) and extend the service life of the facility by more than 5 years.

Please see Section 8 of this call for projects, Screening and Prioritization Criteria, for a more detailed overview of project eligibility. Also, please see Attachment 2 for MTC’s description of eligible projects for each category and a list of MTC contacts for each category.

6. TIMELY USE OF FUNDS REQUIREMENTS

CMA Block Grant projects are required to meet strict timely use of funds requirements in compliance with MTC’s Regional Project Funding Delivery Policy, Resolution 3606 (Attachment 3). The Authority strongly suggests that project sponsors closely review the timely use of funds requirements. The deadlines are intended to facilitate a strong record of project delivery so as to avoid loss of transportation funds to the region and the state and build a case for directing additional revenues to the region. When project sponsors fail to meet the timely use of funds requirements, funds can be lost to the project, to San Francisco, and/or the MTC region depending upon the particular requirement that was not satisfied. Consistent with these requirements, the Authority’s prioritization process will heavily weight project readiness and the likelihood of meeting timely use of fund deadlines.

Some examples of the timely use of funds requirements are as follows:

• Obligation of Funds: Obligation requests must be submitted to Caltrans Local Assistance by February 1 of the fiscal year the funds are programmed in the TIP and the funds must be obligated by April 30 of the same fiscal year. For example, if funds are programmed in the TIP in Fiscal Year 2010/11 then the obligation request is due by February 1, 2011 and the funds must be obligated by April 30, 2011. The Authority encourages project sponsors to obligate funds as early as possible in the fiscal year of programming. This will allow for the longest period of time to meet timely use of funds requirements.

• Field Reviews: Project sponsors must contact Caltrans and schedule a field review within 12 months of MTC’s approval of the project in the federal TIP regardless of year of programming. Project sponsors must request a field review at least 12 months before the obligation deadline of construction funds.

• Environmental Documentation Submittals: Implementing agencies are required to submit a complete environmental package to Caltrans for all projects (except for those projects that qualify as a Programmatic Categorical Exemption as determined by Caltrans at the field review), 12 months prior to the obligation deadline for right of way or construction funds. If the environmental process, as determined at the field review, will take longer than 12 months before obligation, the implementing agency is responsible for delivering the complete environmental submittal in a timely manner.

• Expenditure of Funds (Project Development): Funds allocated for project development (e.g. engineering design, environmental studies) or right of way costs must be expended by the end of the second fiscal year in which the funds were allocated. Funds for this phase must be invoiced against at least once every six months following obligation. Funds must be liquidated (fully expended, invoiced and reimbursed) within six years of obligation.


• Expenditure of Funds (Construction): Funds obligated for construction must be advertised for contract within 6 months of obligation, awarded with 9 months of obligation and expended within 36 months of award of the contract. Funds for this phase must be invoiced against at least once 12 months after obligation and then every six months there after. Funds must be liquidated (fully expended, invoiced and reimbursed) within six years of obligation.

7. APPLICATION PROCESS

Application Materials and Schedule: In order to be eligible to compete for CMA Block Grant funds, project sponsors must submit a complete set of application materials in hard copy and electronic format to the Authority by the dates indicated on the schedule above. Application materials should be sent to:

[Hard Copy] José Luis Moscovich, Executive Director

Attention: Ben Stupka San Francisco County Transportation Authority

100 Van Ness Avenue, 26th Floor San Francisco, CA 94102

[Electronic Format]

[email protected] and [email protected]

Signed Transmittal Letter: Project sponsors must submit a signed transmittal letter on agency letterhead. A single transmittal letter may cover all of the CMA Block Grant projects being submitted by a single project sponsor. The transmittal letter shall include the following:

• A list of the projects being submitted by the sponsor, the CMA Block Grant program that the sponsor is seeking funds from (e.g. County TLC, RBP, LS&R) and the amounts requested from each program

• Identification of the sponsor’s priorities

• A brief description of community support for each of the candidate projects and any relevant community planning process through which the project was identified, discussed, etc.

• Letters of support for the project (optional).

CMA Block Grant Application Form: The CMA Block Grant application (Attachment 4) form will be used by the Authority to determine project eligibility and prioritization for selection. Every project must have its own application. The application form includes a section that identifies which program(s) the sponsor is applying for and allows the project sponsor to apply for funding from multiple programs to fund the full scope of the project. For example, a sponsor with a TLC project could apply for LS&R funds for the street resurfacing components of the project’s scope. The application also includes specific questions for each program. The specific questions will be noted and project sponsors that are not applying for the subject program can skip the section.

8. SCREENING AND PRIORITIZATION CRITERIA

Prioritization Process: The Authority will prioritize projects based on screening and prioritization criteria for the CMA Block Grant program as a whole and with screening and prioritization criteria within each individual program. This section also details the type of project to which the Authority will consider flexing funds.


CMA Block Grant Screening Criteria: Projects must meet all screening criteria in order to be considered further for CMA Block Grant funding. The screening criteria will focus on meeting the eligibility requirements for CMA Block funds and include, but are not limited to the following factors:

• Project is a fully funded, stand alone capital project.

• Project sponsor is an eligible administering agency per MTC’s CMA Block Grant guidelines.

• Project sponsor is requesting a minimum of $250,000 in CMA Block Grant funds.

• Project is consistent with the 2009 Regional Transportation Plan and Countywide Transportation Plan.

TLC Screening Criteria: Projects must meet all of the CMA Block Grant screening criteria and the TLC County Share screening criteria in order to be considered further for TLC County Share funding.

• Project must be a streetscape improvement that supports multi-modal travel.

• Project must be in an ABAG designated PDA, see Attachment 2 for a map of San Francisco’s PDAs.

• Project must have the required 20% local match in committed or programmed funds.

RBP Screening Criteria: Projects must meet all of the CMA Block Grant screening criteria and the RBP screening criteria in order to be considered further for RBP funding.

• Project must be capital projects that add route mileage to the existing Regional Bikeway Network as designated in MTC’s 2009 Regional Bicycle Plan, or as amended through the update process identified on pp. 15-16 in Attachment 2.

• Project must have the required 11.47% local match in committed or programmed funds.

LS&R Screening Criteria: Projects must meet all of the CMA Block Grant screening criteria and the LS&R screening criteria in order to be considered further for LS&R funding.

• Project must be a pavement rehabilitation or preventative maintenance project that extends the useful life of the facility by at least 5 years. Capacity expansion projects, right-of-way purchases, channelization, routine maintenance, spot application, seismic retrofit, and structural repair on bridges is ineligible. Non-pavement enhancements, such as streetscape projects and new traffic calming features, are also ineligible. Non-pavement projects/activities that replace features currently existing on the roadway are eligible as follows: minor structures (e.g. headwalls, retaining walls, slide repair and slope protection), ADA compliance components, NPDES/Permits, traffic safety components (e.g. striping, signs, signals), bike paths (Class II/III only), and sidewalks.

• Project must be on the Federal-Aid System.

• Project selection must be based on the analysis results from San Francisco’s certified Pavement Management System.

• Project must have the required 11.47% local match in committed or programmed funds.

CMA Block Grant Prioritization Criteria: Projects that meet all of the CMA Block Grant screening criteria and the screening criteria for the individual program will be prioritized for CMA Block Grant funding based on, but not limited to the factors listed below. The Authority reserves the right to modify or add to the prioritization criteria in response to additional guidance and if necessary to prioritize a very competitive list of eligible projects that exceed available programming capacity.


• Project Readiness: Projects that can clearly demonstrate an ability to meet timely use of funds requirements. This enables project benefits to be realized sooner and supports the regions strategy to obligate STP and CMAQ funds as early as possible. Within this criterion, the Authority will prioritize projects that can demonstrate CEQA clearance and a potential categorical exclusion in NEPA.

• Community Support: Projects with clear and diverse (e.g. broad) community support will receive a higher priority. This can be shown through letters of support, specific reference and community meetings regarding the project.

• Safety: Projects with safety benefits will be given a higher priority. Project sponsors must clearly define the safety issue that is being addressed and how the project will improve or alleviate the issue.

• Complete Streets: Projects that directly benefit multiple system users (e.g. pedestrians, cyclists, transit passengers) will be prioritized.

• Geographic Equity: This factor will be considered looking at the entire list of San Francisco projects.

• Project Sponsor Priority: For project sponsors that submit multiple CMA Block Grant applications, we will consider the project sponsor’s relative priority for its applications.

• Program Diversity: The variety of project types will be considered looking at the entire list of San Francisco projects.

• Multi-Agency Collaboration: Project is supported by multiple city agencies.

Given the challenge of meeting the timely use of funds requirements and the consequences of failing to meet the requirements (e.g. loss of funds to the project and San Francisco), project readiness will be given strong consideration. As is customary, we will work closely with project sponsors clarify scope, schedule and budget; and modify programming recommendations as needed to help optimize the project’s ability to meet timely use of funds requirements.

TLC County Share Prioritization Criteria: Projects that meet all of the screening criteria will be prioritized for TLC - County Share funding based on, but not limited to the factors listed below.

• Projects that improve a range of transportation choices by adding or improving pedestrian, transit, and/or bicycle facilities, and by improving the links between these facilities and activity nodes.

• Projects that can demonstrate direct support for existing and planned mixed-use developments.

• Projects that are designed to create ADA compliant direct connections to link to high volume regional and local transit.

• Projects that improve safety and enhance the pedestrian environment will be given a high priority. This includes, but is not limited to, shortening pedestrian crossing distances, adding/upgrading crosswalks, adding/upgrading pedestrian signals, adding pedestrian lighting, adding public art and adding street trees/landscaping.

• Projects that have conceptual designs at a minimum and ideally completed survey work (e.g. at or near 35% design).

• Projects that are derived from a Board-adopted planning document (such as a transportation-land use plan, urban design/landscape concept plan, design development plan, specific plan,


general plan etc.) and have conceptual design that has been reviewed by the public.

RBP Prioritization Criteria: Projects that meet all of the screening criteria will be prioritized for RBP funding based on, but not limited to the factors listed below.

• Projects that attract and meet the needs of a broad range of users, including school children, students, seniors, the disabled, families, commuters and recreationalists.

• Project near existing and planned activity centers such as shopping areas, employment centers, transit centers, civic centers, parks, schools, libraries and other community facilities.

• Projects that would close a gap or remove a barrier to access of the rest of the Regional Bikeway Network.

LS&R Prioritization Criteria: Projects that meet all of the screening criteria will be prioritized for LS&R funding based on, but not limited to the factors listed below.

• Projects with a PCI score of 70 or below.

• Projects on existing bicycle and transit routes.

If the amount of CMA Block Grant funds requested exceeds available funding we reserve the right to negotiate with project sponsors on items such as scope and budget changes that would allow us to develop a recommended CMA Block Grant project list that best satisfies all of the aforementioned prioritization criteria.

9. FOR MORE INFORMATION

For more information or assistance with this call for projects, please contact Ben Stupka at (415) 522-4820 or via e-mail at [email protected] or Chad Rathmann at (415) 522-4825 or via email at [email protected]. This call for projects and related CMA Block Grant guidelines and other materials are also available on the Authority’s website (www.sfcta.org) by clicking on Funding Opportunities on the left-hand side on the home page.

Attachments (4)

Attachment 1 – San Francisco Priority Development Area Map

Attachment 2 – MTC’s CMA Block Grant Program Guidance

Attachment 3 – MTC’s Regional Project Funding Delivery Policy, Resolution 3606

Attachment 4 – CMA Block Grant Application (separate Word file)

cc: D. Johnson, C. Goldblatt, MTC

JLM, TC, RH, ZB, JK, MS, CF, P&PD – Chron, File: 2010 CMA Block Grant

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City and County of San Francisco

San Mateo County

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Better Neighborhoods:Balboa Park

Downtown Neighborhoods &Transit Rich Corridors

San Francisco/San Mateo Bi-County Area

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Bayview/Hunters Point/Candlestick Point

Downtown Neighborhoods &Transit Rich Corridors

Mission Bay

19th Avenue Corridor - County Line to Eucalyptus Drive

EasternNeighborhoods

Better Neighborhoods:Market & Octavia

Port of San Francisco

El Camino Real

Transbay Terminal

The content of this map is intended for planning purposes only.

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Priority Development Areas in San Francisco, California

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Bi-County Area - PlannedBalboa Park/Market & Octavia - PlannedBayview/Hunters/Candlestick - PlannedDowntown & Transit Corridors - PlannedEastern Neighborhoods - PlannedMission Bay - PlannedPort of San Francisco - PlannedTransbay Terminal - PlannedTreasure Island - Planned19th Avenue Corridor - Potential

Priority Development Area Status

Attachment 1: San Francisco Priority Development Areas

Metropolitan Transportation Commission January 22, 2010 CMA Block Grant Guidance Page 1

CONGESTION MANAGEMENT AGENCY BLOCK GRANT PROGRAM GUIDANCE

NEW ACT CYCLE 1 STP/CMAQ

INTRODUCTIONOn December 16, 2009 the Commission approved the Cycle 1 Project Selection Criteria and Programming Policy (MTC Resolution 3925) which guides the programming of the first three year increment (FY 2009-10, FY 2010-11 and FY 2011-12) of federal funding in the Surface Transportation Authorization Act (pending further congressional development and action) and establishes as well an overall framework and funding estimate for the final three years (FY2012-13 through FY2014-2015).

Programming policies also established the CMA Block Grant approach, which delegates program management and project selection to the county congestion management agencies for three programs: the County Transportation for Livable Communities Program, the Regional Bicycle Program, and the Local Streets and Roads Shortfall Program. The objective of the block grant is to provide additional flexibility to the CMAs.

The use of this guidance targets congestion management agency staff in order to facilitate the selection of projects, programming of STP/CMAQ funding in the Transportation Improvement Program, and timely use of these funds.

The guidance is structured as follows:

1. General Programming Policies, which apply to all federally funded projects

2. CMA Block Grant Approach

3. CMA Strategic Plan

4. Program Schedule

5. Project Selection Criteria for Each Program

6. MTC Staff Contacts

1. GENERAL PROGRAMMING POLICIES The following programming policies apply to all projects, irrespective of their MTC program origin. The CMAs need to make potential applicants for STP/CMAQ funding aware of these obligations that apply to federal grants:

Project Amendments: The implementing agency or MTC may determine that circumstances may justify changes to the STP/CMAQ programming. These changes, or amendments to these regional programs, are not routine. All proposed changes will be reviewed by MTC staff before the Commission considers any formal actions on program amendments. All changes must follow MTC policies on the Public Involvement Process and Federal Air Quality Procedures and

Attachment 2


Conformity Protocol. Changes must be consistent with the Regional Transportation Plan (RTP), must not adversely affect the expeditious implementation of Transportation Control Measures (TCMs), must not negatively impact the deliverability of other projects in the regional programs, and must not affect the conformity finding in the TIP.

Public Involvement. MTC is committed to a public involvement process that is proactive and provides comprehensive information, timely public notice, full public access to key decisions, and opportunities for continuing involvement. MTC provides many methods to fulfill this commitment, as outlined in the MTC Public Participation Plan, Resolution No. 3821. The Commission’s adoption of the STP/CMAQ Cycle 1 program, including policy and procedures meet the provisions of the MTC Public Participation Plan. MTC’s advisory committees and the Bay Area Partnership have been consulted in the development of funding commitments and policies for this program; and opportunities have been provided to other stakeholders and members to comment.

Furthermore, investments made in the STP/CMAQ program must be consistent with federal Title VI requirements. Title VI prohibits discrimination on the basis of race, color, income, and national origin in programs and activities receiving federal financial assistance. Public outreach to and involvement of individuals in low income and minority communities covered under Title VI of the Civil Rights Act and the Executive Order pertaining to Environmental Justice is critical to both local and regional decisions. Additionally, when asked to select projects for funding at the county level, CMAs must consider equitable solicitation and selection of project candidates in accordance with federal Title VI requirements.

Inclusion into the Transportation Improvement Program (TIP). Projects approved as part of the Cycle 1 STP/CMAQ program must be amended into the 2009 TIP, or the subsequent 2011 TIP. The federally required TIP is a comprehensive listing of all San Francisco Bay Area transportation projects that receive federal funds, and/or are subject to a federally required action, such as federal environmental clearance, and/or are regionally significant for air quality conformity or modeling purposes.

Air Quality Conformity. In the Bay Area, it is the responsibility of MTC to make an air quality conformity determination for the TIP in accordance with federal Clean Air Act requirements and Environmental Protection Agency (EPA) conformity regulations. MTC evaluates the impact of the TIP on regional air quality during the biennial update of the TIP. Since the 2009 air quality conformity finding has been completed for the 2009 TIP, no non-exempt projects that were not incorporated in the finding will be considered for funding in the Cycle 1 Program until the development of the 2011 TIP during spring 2010. Additionally, the U.S. Environmental Protection Agency designated the Bay Area as a non-attainment area for PM 2.5 starting December 14, 2009. Within 12 months of effective date of this classification, based on consultation with the MTC Air Quality Conformity Task Force, projects deemed “Projects of Air Quality Concern” must complete a hot-spot analysis required by the Transportation Conformity Rule. Generally Projects of Air Quality Concern are those projects result in significant increases in the number of or emissions from diesel vehicles. Owing to the nature of the programs funded through the CMA Block Grant, anticipated projects are expected to be exempt from air quality conformity.

Attachment 2


Environmental Clearance. Project sponsors are responsible for compliance with the requirements of the California Environmental Quality Act (Public Resources Code Section 2l000 et seq.), the State Environmental Impact Report Guidelines (l4 California Code of Regulations Section l5000 et seq.), and the National Environmental Protection Act (42 USC Section 4-1 et seq.) standards and procedures for all projects with Federal funds.

Application, Resolution of Local Support. Project sponsors/ implementing agencies must submit a completed project application for each project proposed for funding through MTC’s Funding Management System (FMS). The project application consists of two parts: 1) an application submittal and/or TIP revision request to MTC staff and 2) Resolution of Local Support approved by the project sponsor/ implementing agency’s governing board or council. A template for the resolution of local support can be downloaded from the MTC website using the following link: http://www.mtc.ca.gov/funding/STPCMAQ/STP_CMAQ_LocalSupportReso.docA project sponsor will submit the resolution of local support at the same time it requests a revision to the TIP adding its project and/or federal funding. This is done by attaching a pdf version of the adopted resolution to the project record in MTC’s Fund Management System (FMS). Sponsors of projects that have previously received STP/CMAQ or State Improvement Program (STIP) funds may rely on the prior Resolution of local support prepared for the same project, provided that the project scope remains unchanged.

Project Screening and Compliance with Regional and Federal Requirements. MTC staff will perform a review of projects proposed for the Cycle 1 STP/CMAQ Program to ensure 1) eligibility; 2) RTP consistency; and 3) project readiness. In addition, project sponsors must adhere to directives such as “Complete Streets” (MTC Routine Accommodations for Bicyclists and Pedestrians); and the Regional Project Funding Delivery Policy as outlined below; and provide the required non-federal matching funds. Project sponsors should note that fund source programs, eligibility criteria, and regulations may change as a result of the passage of new surface transportation authorization legislation. In this situation, MTC staff will work to realign new fund sources with the funding commitments approved by the Commission.

Federal Project Eligibility: STP has a wide range of projects that are eligible for consideration in the TIP. Eligible projects include, federal-aid highway and bridge improvements (construction, reconstruction, rehabilitation, resurfacing, restoration, and operational), mitigation related to an STP project, public transit capital improvements, pedestrian, and bicycle facilities, and transportation system management, transportation demand management, transportation control measures, surface transportation planning activities, and safety. More detailed eligibility requirements can be found in Section 133 of Title 23 of the United States Code.

CMAQ funding applies to new or expanded transportation projects, programs, and operations that help reduce emissions. Eligible project categories that meet this basic criteria include: Transportation activities in approved State Implementation Plan (SIP), Transportation Control Measures (TCMs), public-private partnerships, alternative fuels, traffic flow improvements, transit projects (facilities, vehicles, operating assistance up to three years), bicycle and pedestrian facilities and programs, travel demand management, outreach and rideshare activities, telecommuting programs, intermodal freight, planning and project development activities, Inspection and maintenance programs, magnetic

Attachment 2


levitation transportation technology deployment program, and experimental pilot projects. For more detailed guidance see the CMAQ Program Guidance (FHWA, November 2008).

MTC Program Eligibility: MTC staff will review all projects nominated by the CMA for block grants, to ensure that they meet the eligibility requirements of the MTC established programs: Regional Bicycle Program, County TLC Program, and the Local Streets and Roads Shortfall Program. Eligibility requirements for these programs are explained later in this guidance.

RTP Consistency: Projects included in the Cycle 1 STP/CMAQ Program must be consistent with the adopted Regional Transportation Plan (RTP), according to federal planning regulations. Each project included in the Cycle 1 Program must identify its relationship with meeting the goals and objectives of the RTP, and where applicable, the RTP ID number or reference.

Complete Streets (MTC Routine Accommodations of Pedestrians and Bicyclists) Policy): Federal, state and regional policies and directives emphasize the accommodation of bicyclists, pedestrians, and persons with disabilities when designing transportation facilities. MTC's Complete Streets policy (Resolution No. 3765) created a checklist that is intended for use on projects to ensure that the accommodation of non-motorized travelers are considered at the earliest conception or design phase. The county Congestion Management Agencies (CMAs) ensure that project sponsors complete the checklist before projects are submitted to MTC. CMAs are required to make completed checklists available to their Bicycle and Pedestrian Advisory Committee (BPAC) for review prior to project programming in the TIP. Specific guidance and forms on this requirement are available at http://www.mtc.ca.gov/planning/bicyclespedestrians/routine_accommodations.htm

Other policies include Caltrans Complete Streets Policy Deputy Directive 64 R1 which stipulates: pedestrians, bicyclists and persons with disabilities must be considered in all programming, planning, maintenance, construction, operations, and project development activities and products and SB 1358 California Complete Streets Act, which requires local agency general plan circulation elements to address all travel modes.

Regional Project Delivery Policy: Cycle 1 STP/CMAQ funding is available in the following three fiscal years: FY 2009-10, 2010-11, and 2011-12. Block grant funds are available in the last two years of the program: 2010-11, and 2011-12. CMAs need to program 50% of their block grant funding in each of these years. Some flexibility may be granted conditioned upon the availability of obligation authority (OA). This will be determined through the development of an annual obligation plan, which is developed in concert with the Partnership and project sponsors. Funds designated for each project component will be available for obligation in the fiscal year in which the funds are programmed in the Transportation Improvement Program (TIP). It is therefore very important that projects be ready to proceed in the year programmed. For example, a project that is assigned funds in FY 2010-11 is required to obligate by April 30, 2011. Obligation is defined FHWA’s authorization of the funds or FHWA’s transfer of funds to Federal Transit Administration (FTA).

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All Cycle 1 funding is subject to the Regional Project Funding Delivery Policy and any subsequent revisions (MTC Resolution No. 3606). Obligation deadlines, project substitutions and redirection of project savings will continue to be governed by the MTC Regional Project Funding Delivery Policy, which enforces fund obligation deadlines, and project substitution for STP and CMAQ funds. All funds are subject to award, invoicing and project close out requirements. Project sponsors must sign project supplementary agreements and award construction contracts within six months of obligation; and subsequently request reimbursements every six-twelve months to keep grants active. The failure to meet these deadlines will result in the deobligation of any unexpended fund balances for the project. Obligation deadlines, project substitutions and redirection of project savings also will continue to be governed by the MTC Regional Project Delivery Policy which enforces fund obligation deadlines and project substitution for STP and CMAQ funds (MTC Resolution No. 3606).

For specific details on the regional project delivery policy (MTC Resolution No. 3606), its deadlines, and other requirements refer to http://www.mtc.ca.gov/funding/delivery/MTC_Res_3606.pdf It is the responsibility of the implementing agency at the time of programming, to ensure the regional, state and federal deadlines and provisions of the regional project delivery policy can be met.

MTC staff will actively monitor and report the obligation status of projects to the Programming Deliver Working Group (PDWG) of the Bay Area Partnership. The project sponsor is responsible for meeting all funding and delivery requirements and ensuring funds are not de-obligated from the project. Acceptance of funds from the CMA Block Grant Program indicates a project sponsor’s acceptance of the federal regulations, state statutes, and regional polices as they pertain to the funding of the project and of the policies set forth in the Cycle 1 Program. The PDWG will monitor project delivery issues as they arise and make recommendations to the Partnership Technical Advisory Committee (PTAC) as necessary.

Local Match: Projects funded with STP or CMAQ funding requires a non-federal local match. Based on California’s share of the nation’s federal lands, the local match for STP and CMAQ is 11.47% of the total project cost. The FHWA will reimburse up to 88.53% of the total project cost. Project sponsors are required to provide the non-federal match, which is subject to change. MTC will keep the CMAs and project sponsors aware of any new developments in match requirements.

Fixed Program and Specific Project Selection: Projects are chosen for the program based on eligibility, project merit, and deliverability within the established deadlines. The regional STP/CMAQ program is project specific and the STP and CMAQ funds programmed to projects are for those projects alone. The STP/CMAQ Program funding is fixed at the programmed amount; therefore, any cost increase may not be covered by additional STP and CMAQ funds. Project sponsors are responsible for securing the necessary non-federal match, and for cost increases or additional funding needed to complete the project including contingencies.

Priority Development Areas (PDA) Based Funding Decisions: In Transportation 2035, the Commission’s transportation/land use and climate change policies seek to align

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“focused growth” land use principles and transportation investments. As part of the ARRA program adoption in February 2009, the Commission directed staff to begin developing a PDA investment strategy in advance of the new federal authorization. As it relates to the New Act programming under the CMA block grant, the following policies support PDA based funding strategies:

Transportation for Livable Communities: All TLC projects must be located in priority development areas with additional weight given in project evaluation depending on whether the projects are in planned or proposed PDAs and based on proposed development intensity.

Rehabilitation – Streets and Roads and Transit: The current distribution formula prioritizes funding for local jurisdictions that are considered high-intensity PDAs. The allocation formula for streets and roads rehabilitation contains four factors, weighted 25% each, including population, lane mileage, arterial and collector shortfall, and preventive maintenance performance. The population and lane mileage factors result in the support of PDAs. To ensure this PDA emphasis, CMAs should, in general, use the same allocation formula for streets and roads distribution within the counties. The CMAs, through a required Strategic Plan, may proposal some modifications, including deferring some jurisdiction programming to Cycle 2 or using local funds, to address the competing objective of adhering to federal grant minimums.

2. CMA BLOCK GRANT APPROACH Program management responsibilities will generally be split between MTC and the congestion management agencies (CMAs) as outlined in Table 1. MTC management role is limited to program areas of regional scope or with a network impact. Congestion management agencies would manage programs with a local/community focus.

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Table 1: Program AdministrationTransportation 2035 Core Programs Manager Block Grant

Freeway Performance Initiative (FPI) and the Regional Signal Timing Program.

MTC, Caltrans and CMAs

Climate Initiatives (Public Outreach/ Innovative Grants/ Evaluation)

MTC and Bay Area Air Quality Management District

Climate Initiatives – Safe Routes to School

County – TBD and MTC regional coordination and assistance

Regional Bicycle Program CMAs Yes

Climate Initiatives—Eastern Solano CMAQ

Solano Transportation Authority

TLC – Regional MTC

TLC – County CMAs Yes

Local Streets and Roads Shortfall Program CMAs Yes

Transit Capital Rehabilitation MTC

For core programs managed by the CMAs, MTC will be making funding available to the CMAs by means of a CMA block grant” to allow more flexibility and more strategic project selection. The block grant will encompass the Regional Bicycle Program, County TLC Program, and the Local Streets and Roads Shortfall Program. Table 2 presents an overview of the funding made available to the CMAs under their block grants. The block grant program will function as follows:

Planning Activities: Up to 4% may be used by CMAs for planning activities to be deducted proportionately from all Block Grant programs within the county. Contract amendments to the Regional Planning agreements in March/April are to capture any augmentations.

Flex provision: Up to 20% of each program’s funds may be flexed from one Block Grant program to fund another in order to recognize practical project delivery considerations and unique county priorities. CMAs can request flexibility beyond the 20% through their Strategic Plan for consideration by the Commission. Before programming Cycle 2 MTC staff will provide a report on how the flex provision was applied for Cycle 1 funds for consideration by the Commission.

Minimum Grant Size: STP/CMAQ grants per project cannot be programmed for less than $500,000 for counties with a population over 1 million (Alameda, Contra Costa, and Santa Clara counties) and $250,000 for counties with a population under 1 million (Marin, Napa, San Francisco, San Mateo, Solano, and Sonoma counties). CMAs may request exceptions through the strategic plan process, especially when balancing the objective of using the Local Streets and Road distribution formula. The objective of this requirement is to minimize the number of federal-aid projects, which place administrative burdens on project sponsor, MTC, Caltrans Local Assistance, and Federal Highway Administration

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staff. Also for programming purposes, grants need to be rounded to the nearest thousand dollar place value.

Unified Call for Projects: CMAs are requested to issue one unified call for projects addressing all of their respective Block Grant programs in early 2010. A strategic plan (discussed subsequently) will explain the CMA programming approach in general terms due by April 1, 2010; a final project list is due to MTC by July 30, 2010. The goal is to reduce staff resources, coordinate all programs to respond to larger multi-modal projects, and give project sponsors the maximum time to deliver projects. In the case of the County TLC program, final recommendations for the Regional TLC program will be going to the Commission in July 2010; so CMAs may request an additional month to submit County TLC projects to MTC if needed to coordinate their project selection for the County TLC program with the MTC adopted Regional TLC Program.

Table 2: CMA Block Grant Program

Counties Regional Bicycle County TLC LS&R Rehab. County Total

CMA Planning (max. 4%)

Alameda $3,836 $5,962 $16,550 $26,348 TBD

Contra Costa $2,367 $4,152 $10,742 $17,261 TBD

Marin $1,649 $1,010 $2,435 $5,094 TBD

Napa $605 $540 $1,880 $3,025 TBD

San Francisco $1,368 $3,115 $7,745 $12,228 TBD

San Mateo $1,739 $2,878 $6,790 $11,407 TBD

Santa Clara $4,638 $7,121 $17,233 $28,992 TBDSolano $1,349 $1,664 $6,465 $9,478 TBD

Sonoma $1,949 $1,891 $9,160 $13,000 TBD

Totals $19,500 $28,333 $79,000 $126,833 TBD

(thousands $)

3. CMA BLOCK GRANT STRATEGIC PLAN By April 1, 2010, CMAs are asked to submit a Strategic Plan to MTC outlining their approach for programming their block grants as a preliminary step to final project selection by July 30, 2010. This plan is anticipated to summarize a county’s overall thinking in a brief and concise way, communicating to MTC a given county’s programming goals underlying the use of block grant funds, how the program requirements are being met, and needed flexibility. Specifically the plan is to address the following policies, not exceeding several pages in length:

Amount of funds for CMA planning purposes and rationale behind any flexing of program amounts within the Block Grant Programs up to the 20% allowed. Examples might include flexibility to deliver on a complete streets approach or deliver investments that better support PDAs. Any request beyond 20% would need be submitted to the Commission for approval.

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The approach used to select Local Streets and Roads Shortfall Program projects, if it differs from the MTC distribution formula. A CMA needs to explain demonstrate that the alternate approach would not divert funds from PDAs within its jurisdiction. For added flexibility CMAs may elect to fund a few large projects, while making sales tax or other funding available to other jurisdictions. CMAs may also use Cycle 2 to defer grants to jurisdictions not receiving funding in Cycle 1.

Federal Funding Minimums: Unique circumstances or hardships may allow for modifications to this policy, which need to be discussed with MTC staff beforehand and included in the plan. Also for the Local Streets and Roads Shortfall Program, in order to balance the objectives of streamlining federal fund expenditures through project minimums and the requirement that CMAs should adhere to the distribution formula down to the jurisdiction level, CMAs may propose to defer some jurisdiction programming to Cycle 2 or to use local funds.

Safe Routes to Schools Program (SR2S) recommended county approach, including lead agency for project selection and federal funding recipient, and any request for additional funding to expand implementation of creative school-related emission reduction strategies. MTC will coordinate the SR2S program, including review and approval of county programs by the Commission. The CMAs are requested to provide assistance in the development of objectives and the definition of agency roles for this program within their respective jurisdictions. These will vary throughout the region and even within a county. There are various lead agencies for current Safe Routes to School programs including bicycle and regional coalitions, departments of health, congestion management agencies, offices of education, and cities. As part of the CMA Block Grant Strategic Plan, the CMA would identify the lead agency for plan implementation, the allocation of funds to specific implementation actions, performance targets, and plan for sustaining the SR2S program beyond the allocation of CMAQ funds. CMAs should also include briefly a description of potential project submittals for the innovative component of the SR2S program ($2 million), which is regionally competitive. A project solicitation will follow. Please note that this program does not fall under the CMA Grant Program.

Complete Streets: A CMA should explore giving priority to funding projects that demonstrate a “complete streets” design approach by including pedestrian and/or bicycle projects in the project scope.

Priority Development Area: The CMA should discuss its consideration of priority development areas and policies in its project selection approach. Information on PDA designations is available at http://www.bayareavision.org/pda/

4. PROGRAM SCHEDULECycle 1 spans apportionments over three federal fiscal years: FY 2009-10, FY 2010-11, and FY 2011-12. Programming in the first year will generally be for the on-going regional operations and regional planning activities which can be delivered immediately, allowing the region to meet the obligation deadlines for use of FY 2009-10 funds. This strategy, at the same time, provides several months during FY 2009-10 for program managers to select projects and for MTC to program projects into the TIP to be obligated during the remaining second and third years of the Cycle 1 period.

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As a starting point, core programs’ STP/CMAQ funds will need to be programmed in the TIP and delivered (obligated), 50% of their funds in each of the FY 2010-11 and FY 2011-12 years. However; a program may potentially deviate from this 50-50 percent split, depending on whether other program funding needs can be offset accordingly, based on other Cycle 1 program requests. Within their block grant programs, CMAs have the flexibility to make this split in a combined fashion for the County TLC and Regional Bicycle programs, which both use CMAQ. In the summer, MTC staff will work all program managers and CMAs to develop a cash flow plan based on these needs prior to the start of Federal Fiscal year 2010-11 (July 30, 2010). Ultimately, all Cycle 1 projects must be delivered (funds obligated) by April 30, 2012.

5. PROJECT SELECTION CRITERIA FOR EACH PROGRAM

Local Streets and Roads Shortfall (LSRS) Program

General Program Information

MTC is committed to maintaining the regionally important system of state highways and local roads, identified as the Metropolitan Transportation System (MTS). To assist jurisdictions with the local streets and roads maintenance, MTC has set aside Surface Transportation Program (STP) funds for local streets and roads pavement rehabilitation and preventive maintenance projects. State highway rehabilitation and maintenance is to be funded by Caltrans under the State Highway Operations and Protection Program (SHOPP).

Local Streets and Project Eligibility

Purpose of Rehabilitation and Preventive Maintenance Projects. The purpose of pavement rehabilitation and preventive maintenance projects is to preserve and extend the service life of an existing facility. This includes work on non-pavement items listed in Table 3, placement of additional pavement surfacing and/or other work necessary to return an existing structure or roadway, including shoulders, to a serviceable condition. Pavement rehabilitation and preventive maintenance strategies should extend the service life of a facility for a minimum of 5 years. This program does not fund routine maintenance projects.

Pavement Management System. MTC recognizes the importance of having effective pavement management tools available to jurisdictions. MTC’s pavement management system, StreetSaver®, is used by all 109 cities and counties in the Bay Area and the software has been instrumental in accurately establishing the rehabilitation needs of local streets and roads in the region. In addition to providing meaningful estimates on the future financial rehabilitation needs of the local streets and roads, the system also uses decision rules to help jurisdictions determine the most cost effective treatments for rehabilitating a facility.

The proposed projects must be based on the analysis results from an established PMS for a jurisdiction. Local jurisdicions can access their pavement management database at www.streetsaveronline.com. The sponsoring agency must have a certified Pavement Management System (PMS), MTC’s or equivalent, for submitting rehabilitation and preventive maintenance projects. MTC is responsible for verifying the certification status. A list of jurisdiction certification status can be found at www.mtcpms.org/ptap/cert.html.

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Project Eligibility. The LSRS Shortfall Program funding is reserved for pavement rehabilitation and preventative maintenance projects located on the Federal-Aid System. Capacity-expansion projects, right of way purchases, channelization, routine maintenance, spot application, seismic retrofit, and structural repair on bridges are not eligible activities. Non-pavement enhancements, such as streetscape projects and new traffic calming features, are also not eligible for this program. Generally, the non-pavement activities and projects are replacement of features that currently exist on the roadway facility. Refer to Table 3 for a list of eligible non-pavement project types.

Federal-Aid Eligible Facilities. All public roads functionally classified above rural minor collector are eligible for STP funding. The functional classification system for roadway facilities is further separated between urban and rural classification systems to reflect the fundamentally different travel characteristics of these two classes.

The urban functional classification system is hierarchically represented by four functional categories: 1) principal arterials, 2) minor arterials, 3) collector streets, and 4) local streets. Projects located on facilities classified as collector streets and above are eligible for funding in the urban system. Projects located on a facility classified as a local street in the urban functional classification is not eligible for funding.

The rural functional classification system is separated into five categories: 1) principal arterials, 2) minor arterials, 3) major collectors, 4) minor collectors, and 5) local streets. For facilities in the rural classification system, projects located on major collectors and above are eligible for funding. Projects located on facilities classified as minor collectors and local streets are not eligible for funding.

Caltrans maintains a database of the functional classifications for a majority of the roadways in California. For a general description of the functional classification system, please see http://www.dot.ca.gov/hq/tsip/hseb/func_clas.html. The California Road System (CRS) maps are accessible online at http://dot.ca.gov/hq/tsip/hseb/crs_maps/index.php. For more information, please contact Malcolm Gilmour, District 4 Caltrans, at (510) 286-5553 for a functional classification change or verification of a particular roadway.

County Funding Targets

LSRS Program Fund Distribution: Under the Cycle 1 Program, $79 million is available for the Local Streets and Roads Shortfall (LSRS) Program. Table 4 establishes funding targets for each jurisdiction to program local streets and roads projects. The Cycle 1 round of the local streets and roads rehabilitation program distributes funding to counties based on a performance-based formula that was developed and approved by the LS&R Working Group and the Partnership Board. The allocation formula contains four factors:

Weight Factor25% Population25% Arterial and Collector Lane Mileage25% Arterial and Collector Shortfall

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25% Preventive Maintenance Performance

A distribution share is calculated for each jurisdiction using the four factors described above and the funding shares for all jurisdictions are summed at the county level for final distribution by the county congestion management agencies (CMA).

The distribution formula prioritizes funding for local jurisdictions that are considered high-intensity PDAs. The allocation formula for streets and roads rehabilitation contains four factors, weighted 25% each, including population, lane mileage, arterial and collector shortfall, and preventive maintenance performance. The population and lane mileage factors result in the support of PDAs. To ensure this PDA emphasis, CMAs should generally use the same allocation formula for streets and roads distribution within the counties. The CMAs, through a required Strategic Plan, may propose some modifications, including deferring some jurisdiction programming to Cycle 2 or using local funds, to address the competing objective of adhering to federal grant minimums.

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Table 3 Pavement Rehabilitation and Preventive Maintenance Projects Eligible Project Costs

Category: Pavement Rehabilitation and Preventive Maintenance A. Material cost B. Labor costC. Rental equipment costs related to the project D. Pavement striping costs E. Replacement of loop detectors F. Necessary incidental repairs required by the roadway improvement

(such as repairs/replacement of storm drains, culverts, drainage channels, curb & gutter, driveway conforms)G. Staff costsH. Project design costs I. Construction engineering/management costs (up to 15% of construction cost) J. Contract procurement and advertising costs K. Adjustment of storm drain manholes/survey monuments/storm water inlets/ utility covers and boxesL. Traffic control at project site M. Dust control measures N. Erosion control measures O. Repairs to shoulders P. Mobilization costs

Non-Pavement Rehabilitation Project Types 1. Minor Structures:

Drainage –headwalls, CMP, etc Retaining wallsStorm damage (slope protection, slide repair)

2. ADA compliance – (ramps) 3. NPDES / Permits 4. Traffic Safety – Signs, signals, stripping, etc 5. Bike path – Class II / III only 6. Pedestrian – Sidewalks

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Table 4 Cycle 1 Local Streets & Roads (LS&R) Shortfall Program Fund Distribution (For programming purposes, CMAs need to refer to Table 2 for rounded target amounts)

MARIN COUNTY SAN MATEO COUNTY SOLANO COUNTY

Jurisdiction Total Share Jurisdiction Total Share Jurisdiction Total Share Jurisdiction Total Share

County of Alameda 1,167,832$ County of Marin 873,788$ County of San Mateo 650,090$ County of Solano 1,067,867$ Alameda 872,194$ Belvedere 23,556$ Atherton 98,193$ Benicia 301,570$ Albany 122,023$ Corte Madera 74,214$ Belmont 276,426$ Dixon 229,739$ Berkeley 994,629$ Fairfax 63,840$ Brisbane 76,353$ Fairfield 1,433,558$ Dublin 570,036$ Larkspur 76,244$ Burlingame 310,836$ Rio Vista 89,091$ Emeryville 135,621$ Mill Valley 128,163$ Colma 31,863$ Suisun City 457,586$ Fremont 3,028,368$ Novato 371,718$ Daly City 835,767$ Vacaville 1,216,032$ Hayward 1,391,442$ Ross 19,390$ East Palo Alto 266,321$ Vallejo 1,669,077$ Livermore 1,070,502$ San Anselmo 108,142$ Foster City 200,296$ COUNTY TOTAL 6,464,521$ Newark 710,725$ San Rafael 540,115$ Half Moon Bay 78,404$ Oakland 3,768,142$ Sausalito 81,513$ Hillsborough 176,757$ SONOMA COUNTYPiedmont 69,746$ Tiburon 74,219$ Menlo Park 250,119$ Jurisdiction Total SharePleasanton 912,261$ COUNTY TOTAL 2,434,904$ Millbrae 242,031$ County of Sonoma 4,769,815$ San Leandro 840,217$ Pacifica 400,648$ Cloverdale 56,626$ Union City 896,412$ NAPA COUNTY Portola Valley 103,135$ Cotati 89,045$ COUNTY TOTAL 16,550,149$ Jurisdiction Total Share Redwood City 668,428$ Healdsburg 177,125$

County of Napa 548,047$ San Bruno 390,507$ Petaluma 1,015,233$ American Canyon 202,930$ San Carlos 199,706$ Rohnert Park 534,215$

Jurisdiction Total Share Calistoga 46,553$ San Mateo 748,813$ Santa Rosa 2,032,465$ County of Contra Costa 1,608,148$ Napa 970,989$ So. San Francisco 688,301$ Sebastopol 76,593$ Antioch 1,021,185$ St. Helena 94,985$ Woodside 97,202$ Sonoma 69,189$ Brentwood 440,501$ Yountville 16,489$ COUNTY TOTAL 6,790,197$ Windsor 339,235$ Clayton 152,858$ COUNTY TOTAL 1,879,992$ COUNTY TOTAL 9,159,541$ Concord 1,149,694$ SANTA CLARA COUNTY*Danville 369,404$ Jurisdiction Total Share BAY AREA SHARESEl Cerrito 249,814$ Jurisdiction Total Share County of Santa Clara 1,756,931$ Jurisdiction Total Share % ShareHercules 278,080$ San Francisco 7,745,198$ Campbell 334,650$ Alameda 16,550,149 20.9%Lafayette 231,129$ COUNTY TOTAL 7,745,198$ Cupertino 450,383$ Contra Costa 10,742,158 13.6%Martinez 404,618$ Gilroy 640,094$ Marin 2,434,904 3.1%Moraga 280,677$ Los Altos 269,959$ Napa 1,879,992 2.4%Oakley 408,325$ Los Altos Hills 98,166$ San Francisco 7,745,198 9.8%Orinda 218,486$ Los Gatos 298,800$ San Mateo 6,790,197 8.6%Pinole 179,376$ Milpitas 692,347$ Santa Clara 17,233,340 21.8%Pittsburg 454,372$ Monte Sereno 31,120$ Solano 6,464,521 8.2%Pleasant Hill 316,734$ Morgan Hill 477,228$ Sonoma 9,159,541 11.6%Richmond 1,362,912$ Mountain View 552,215$ Total 79,000,000 100.0%San Pablo 180,159$ Palo Alto 572,327$ San Ramon 441,969$ San Jose 8,319,770$ Walnut Creek 993,717$ Santa Clara 1,211,962$ COUNTY TOTAL 10,742,158$ Saratoga 336,183$

Sunnyvale 1,191,206$ COUNTY TOTAL 17,233,340$ *In the case of Santa Clara County additional flexibility shall be given with respect to the distribution formula.

Specifically, the CMA needs to work with the County of Santa Clara in distributing the Local Streets and Roads Shortfall Program funds to account for the Santa Clara County expressway system.

SAN FRANCISCO COUNTY

CONTRA COSTA COUNTY

ALAMEDA COUNTY


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REGIONAL BICYCLE PROGRAM General Program Information The Regional Bikeway Network (RBN) was developed in 2001 to define bicycling corridors of regional significance. The network includes high priority projects in county or local bicycle plans that fulfilled the criteria to provide connectivity to transit as well as major activity centers.

Transportation 2035 indentifies an investment of $1 billion over 25-years to complete the 2,100 mile long network. This funding will complete all bikeway facilities in every county with the exception of bicycle access over the three bridges (Richmond/San Rafael, San Francisco/Oakland Bay west span and San Mateo/Hayward) where no bicycle access currently exists.

Under the New Act STP/CMAQ Cycle 1 Program, $19,500,000 has been made available to CMAs under the Block Grant Program to fund bicycle improvements.

Project Eligibility Criteria Projects selection to be funded with Regional Bicycle Program funds must meet the following eligibility criteria

1. Projects eligible for funding must be part of the Regional Bikeway Network as outlined in the Regional Bicycle Plan (2009 Update) or as incorporated into the network through the update process described below. Eligible projects are capital in nature, resulting in additional bicycle route mileage.

2. Note that Federal guidelines prohibit the use of CMAQ funds for projects purely intended for safety, recreational bicycle trails, as well as for basic repair and rehabilitation of bicycle or pedestrian facilities. In addition projects funded with CMAQ may not limit public access to the facility. The facility is to allow bicycle and pedestrian access 24 hours per day 7 days a week to maximize air quality improvements and the reduction of emissions.

3. As a general guideline, auxiliary elements (e.g. ADA access improvements, utility trenching, drainage work, fire hydrants, landscaping, cosmetic resurfacing, surface improvements, etc.) that are incidental to the overall project should not exceed 20% of the total project cost. Signage designating a bicycle or pedestrian facility is not considered auxiliary elements for this program. Exceptions may be allowed at the discretion of the CMA.

Flexibility to Accommodate Funding Requests Not Currently on the Network

In the event that a MTC is interested providing a Regional Bicycle Program grant to a project supported by local planning, which has not been previously incorporated into the Regional Bicycle Network, flexibility will be provided. MTC will consider CMA requests to add projects that projects to the Regional Bikeway Network to make projects eligible for program funding through the following process:

a) Submitted projects must meet at least one of the three network criteria (Table 5) as part of a regional destination, regional connection or regional route.

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b) A countywide Bicycle Advisory Committee (BPACs) (and if desired other committees with bicycle and pedestrian interests) must review the projects submitted to MTC for consideration for inclusion on the network.

c) The Regional Bicycle Working Group must evaluate and recommend to staff which projects are included on the network. Staff will approve projects to be amended on the network.

d) Any new projects submitted to the network will be indentified for inclusion in the next update to the Regional Bikeway Network prior to the next Regional Transportation Plan update. It is expected that Cycle 2 will be programmed after the RTP update and at that time we will decide whether to require a substitution process to constrain the network to the current cost estimates or to allow the network to grow in both mileage and costs

Table 5: Regional Bikeways Criteria

1. Regional Destinations

Create connections to the regional transit system – including transit centers and ferry terminals (including BART stations, light rail stations, significant bus stops, airports and commuter rail) – from the four directions surrounding each station. Provide access to and through the major central business districts of the region or sub

region.Establish connections to regionally significant activity centers, including selected

commercial districts, universities and community colleges, hospitals, regional parks, and recreational venues.

2. Regional Connections

Selected connections across county lines. Selected connections across barriers created by the regional transportation system

(e.g., freeways, interchanges, railroads) and natural barriers (e.g., rivers, creeks and bays.)Within current or planned Priority Development Areas (PDAs)

3. Regional Routes

San Francisco Bay Trail. Other regional bicycle routes that serve multiple jurisdictions or connect to adjoining

regions (e.g., Iron Horse Trail, Pacific Coast Bikeway, SMART corridor).

County Funding Targets Under New Act Cycle 1, $19.5 million is available for the projects on the Regional Bikeway Network. Table 6 shows the distribution per county to program bicycle projects, based on a formula and adjusted to reflect funds owed to counties from the previous cycle of the Regional Bicycle and Pedestrian Program. Details follow below:

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Table 6 Regional Bicycle Program (RBP) Cycle 1 Fund Distribution (thousands $) County CMAQ Funds Alameda $3,836 Contra Costa $2,367 Marin $1,649 Napa $605 San Francisco $1,368 San Mateo $1,739 Santa Clara $4,638 Solano $1,349 Sonoma $1,949 Totals $19,500

The performance based formula in Table 7 was developed in conjunction with the Regional Bicycle Working Group, P&D Working Group and the CMAs. The formula is comprised of the following factors:

Table 7 Formula for Regional Bicycle Program Weight Factor25% Costs of bikeway network25% Miles of bikeways 50% Population share

Adjustment to Reconcile Population Share Guarantees from MTC Regional Bicycle and Pedestrian Program under SAFETEA-LU

The Regional Bicycle Pedestrian Program, guided by the Transportation 2030 Plan and funded under SAFETEA-LU, included $32 million over six years divided up into two portions: 25% of the total funds towards a regionally competitive program ($8 million) and the remaining 75% of the funds designated to the counties ($24 million) based on their population share. All of these funds have been programmed. MTC Resolutions 3615, 3644 and 3625 call for all counties to receive their population share of the regional share ($8 million) over twelve years. Due to the program’s competitive nature, the mix of projects selected under the regional program resulted in over-programming to three counties by a total of $1.8 million more than their population shares and under-programming to the remaining counties relative to their population shares.

Counties will be credited and debited their share from the previous program in the New Act bicycle program. $1.8 million will be split between Cycle 1 and 2 off the top and be used to repay each of the six counties the amount it was under funded in the Regional Bike and Pedestrian Program. A total of $919 thousand will be deducted from Cycle 1; the remaining $18.5 million would be allocated to each county by the formula adopted for the new Regional Bicycle Program.

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County Transportation for Livable Communities (TLC)

General Program Information For the past ten years, the Transportation for Livable Communities (TLC) program has served as one of the Bay Area’s primary tools for fostering smart growth. By promoting compact, mixed-use development in existing communities, smart growth aims to accommodate a growing population by providing housing options, and reduced automobile dependency, while protecting open space and agricultural resources.

In September 2009, staff presented several recommendations to MTC’s Planning Committee for the next TLC funding cycle. These recommendations were based on (1) the results of a program evaluation beginning in summer 2007, which included a review of completed TLC Planning, Housing Incentive Program (HIP), and the TLC Capital grants, and (2) a white paper completed by Reconnecting America’s Center for Transit Oriented Development (CTOD). The white paper detailed various options and strategies for financing transit-oriented development in the Bay Area, and made several recommendations for revising the TLC program, including creating a flexible financing program that responds to different market conditions within the region.

The four elements for the regional TLC program framework approved by the Planning Committee include:

1. Incentivize development in Priority Development Areas (PDA) 2. Increase maximum grant size to $6 million, no grant minimum. 3. Expand eligible program categories 4. Establish Regional/County shares – 2/3 regional, 1/3 local

County Funding Targets As mentioned above, MTC’s Planning Committee approved 2/3 of the funds to be administered through the regional TLC Program, and 1/3 to be administered through the county programs. For Cycle 1, in December 2009, the Commission approved a total of $85 million for the TLC program. $56.7 million will be allocated to the region (2/3), while $28.3 million will be allocated to the counties (1/3) based on population. The County TLC fund distribution to the county congestion management is shown in Table 8.

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Table 8: County TLC Fund Distribution ($ in thousands)

Estimated Cost of Program 2007 Population Percentage Fund Distribution

Regional TLC ProgramCompetitive 6,958,473 $56,667

Regional TLC Program Subtotal $56,667

County TLC ProgramAlameda 1,464,202 21.0% $5,962

Contra Costa 1,019,640 14.7% $4,152Marin 248,096 3.6% $1,010Napa 132,565 1.9% $540

San Francisco 764,976 11.0% $3,115San Mateo 706,984 10.2% $2,878

Santa Clara 1,748,976 25.1% $7,121Solano 408,599 5.9% $1,664

Sonoma 464,435 6.7% $1,891County TLC Program Subtotal 6,958,473 100.0% $28,333

Grand Total $85,000

Project Eligibility Criteria

Consistent with the Planning Committee action in September, county TLC funds must be invested in FOCUS PDAs. MTC staff is encouraging CMAs to use the Commission-approved scoring criteria or similar to it. CMAs have the flexibility to set their own grant limits consistent with the PDA block grant approach adopted by the Commission in December 2009.

In September 2009, the Commission approved a 20% match for both the regional and county TLC programs. Local match, in conjunction with the scoring criteria, was revisited at the January 2010 Planning Committee. The Commission is scheduled to act on both the final scoring criteria and match requirement at their January 27 meeting. A copy of the proposed criteria and accompanying memo will be available at your January 22 meeting.

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MTC PROGRAM CONTACTS

For further assistance, please contact the following MTC Staff:

General Cycle 1 Programming Requirements and CMA Block Grant Administration Local Streets and Roads Shortfall Program:

Craig Goldblatt [email protected] (510) 817-5837

Pavement Management System and Federal-Aid Classification System Requirements:

Sui Tan [email protected] (510) 817-5844

Regional Bicycle Program:

Sean Co [email protected] (510) 817-5748

County Transportation for Livable Communities Program Priority Development Areas:

Doug Johnson [email protected] (510) 817-5846

TIP Revisions and the Online FMS Application Process:

Sri Srinivasan [email protected] (510) 817-5793

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Metropolitan Transportation Commission Regional Project Funding Delivery Policy

for STP and CMAQ Funding MTC Resolution No. 3606

July 23, 2008

Metropolitan Transportation Commission 1 July 23, 2008

General Policy The region has established deadlines for funding in the regional Surface Transportation Program (STP) and Congestion Mitigation and Air Quality Improvement (CMAQ) Program to ensure timely project delivery against state and federal funding deadlines. This resolution establishes a standard policy for enforcing project funding deadlines and project substitutions for these funds during the Safe, Accountable, Flexible, Efficient Transportation Equity Act: A Legacy for Users (SAFETEA) and subsequent extensions. STP and CMAQ funds are to be programmed in the Transportation Improvement Program (TIP), up to the apportionment level for that fiscal year, in the fiscal year in which the funds are to be obligated by the Federal Highway Administration (FHWA) or transferred to the Federal Transit Administration (FTA), similar to the programming of the State Transportation Improvement Program (STIP). The regional STP and CMAQ programs are project specific. Projects are chosen for the program based on eligibility, project merit, and deliverability within the established deadlines. The programmed STP and CMAQ funds are for those projects alone. STP/CMAQ funds may be used for any phase of the project in accordance with Caltrans procedures and federal regulations. It is the responsibility of the implementing agency at the time of project application and programming to ensure the regional deadlines and provisions of the regional project funding delivery policy can be met. Agencies with difficulty in delivering existing federal-aid projects will have future programming and Obligation Authority (OA) restricted for additional projects until the troubled projects are brought back on schedule, and the agency has demonstrated it can delivery new projects within the required deadlines. MTC staff will actively monitor and report the obligation status of projects to the Working Group (FWG) of the Bay Area Partnership. The FWG will monitor project funding delivery issues as they arise and make recommendations to the Partnership Technical Advisory Committee (PTAC) as necessary. The implementing agency or MTC may determine that circumstances may justify changes to the STP and CMAQ programming. These changes, or amendments to these regional programs, are not routine. Proposed changes will be reviewed by MTC staff before any formal actions on program amendments are considered by the Commission. STP/CMAQ funds may be shifted among any phase of the project without the concurrence or involvement of MTC if allowed under Caltrans procedures and federal regulations. All changes must follow MTC policies on the Public Involvement Process and Federal Air Quality Procedures and Conformity Protocol. Changes must be consistent with the Regional Transportation Plan (RTP), must not adversely affect the expeditious implementation of Transportation Control Measures (TCMs), must comply with the provisions of Title VI, must not negatively impact the deliverability of other projects in the regional programs, and must not affect the conformity finding in the TIP.

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Regional Project Funding Delivery Policy MTC Resolution No. 3606 for STP and CMAQ Funding Page 2 of 11 Revised July 23, 2008


In selecting projects to receive redirected funding, the Commission may use existing lists of projects that did not receive funding in past programming exercises, or direct the funds to agencies with proven on-time project delivery, or could identify other projects with merit to receive the funding, or retain the funding for future programming cycles. Final decisions regarding the reprogramming of available funds will be made by the Commission. Programming to Apportionment in the Year of Obligation Federal funds are to be programmed in the TIP, up to the apportionment level available, in the fiscal year in which the funds are to be obligated by FHWA or transferred to FTA. The implementing agency is committed to obligate/transfer the funds by the required obligation deadline once the program year in the TIP becomes the current year, and the annual Obligation Plan has been developed for that year. This will improve the overall management of federal apportionment and Obligation Authority (OA) within the region and help ensure apportionment and OA are available for projects that are programmed in a particular year. It will also assist the region in meeting federal financial constraint requirements. At the end of the federal authorization Act, MTC will reconcile any differences between final apportionments, programmed amounts, obligations and actual OA received. Advanced Project Selection Process Obligations for funds advanced from future years of the TIP will be permitted only upon the availability of surplus OA with Advance Construction Authorization (ACA) projects in the annual obligation plan having first priority for OA in a given year, and current programmed projects that have met the delivery deadlines having second priority for OA in a given year. Advanced obligations will be based on the availability of OA and generally will only be considered after February 1 of each fiscal year. In some years OA may not be available for advancements until after May 1, but the funds must be identified in the annual obligation plan, and the obligation request for the advanced OA should be received by Caltrans prior to May 1. Agencies requesting advanced funding should be in good standing in meeting deadlines for other federal-aid projects. Restrictions may be placed on the advancement of funds for agencies that are delivery-challenged (continue to have difficulty delivering projects within required deadlines) or have current projects that are in violation of funding deadlines. MTC may consult with Caltrans and/or the appropriate CMA to determine whether the advancement of funds is warranted and will not impact the delivery of other projects. Implementing agencies wishing to advance projects may request Advance Construction Authorization from FHWA, or pre-award authority from FTA, to proceed with the project using local funds until OA becomes available. ACA does not satisfy the obligation deadline requirement. Important Tip: Caltrans releases unused local OA on May 1 of each year. Projects that do not access their OA through obligation or transfer to FTA by that date are subject to having their funds taken by other regions. This provision allows the advancement of projects after May 1, by using unclaimed OA from other regions. Advance Construction Authorization (ACA) Agencies that cannot meet the regional, state or federal requirements have the option to use Advance Construction Authorization (ACA) rather than seeking an obligation of funds and risk losing the funds due to missing subsequent deadlines. For example if the expenditure of project development funds or award of a construction contract cannot easily be met within the required deadline, the agency may consider

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using ACA until the project phase is underway and the agency is ready to invoice. ACA may also be considered by agencies that prefer to invoice once – at the end of the project, rather than invoice on the required semi-annual basis. ACA conversion to full obligation receives priority in the annual obligation plan. MTC will monitor the availability of OA to ensure delivery of other projects is not impacted by ACA conversions. At the end of the federal authorization Act, ACA may be the only option available should the region’s OA be fully used. Project Cost Savings/Changes in Scope/Project Failures Projects may be completed at a lower cost than anticipated, or have a minor change in scope resulting in a lower project cost, or may not proceed to implementation. In such circumstances, the implementing agency must inform MTC, Caltrans and the appropriate county Congestion Management Agency (CMA) within a timely manner that the funds resulting from these project reductions will not be used. Federal regulations require that the project proceed to construction within ten years of initial federal authorization of any phase of the project. Furthermore, if a project is canceled, or fails to proceed to construction in ten years, FHWA will de-obligate any remaining funds, and the agency is required to repay any reimbursed funds. Project funding reductions accrued prior to the established obligation deadline are available for redirection within the program of origin. Savings within the CMA administered programs (such as Local Streets and Roads Rehabilitation) are available for redirection within the program by the respective CMA, subject to Commission approval. Project funding reductions within regional competitive programs, such as the Transportation for Livable Communities (TLC) program, or for regional operations projects, are available for redirection by the Commission. For all programs, projects using the redirected funding reductions prior to the obligation deadline must still obligate the funds within the original deadline. Minor adjustments in project scope may be made to accommodate final costs, in accordance with Caltrans procedures and federal regulation. However, STP/CMAQ funding for the project is limited to the amount approved by MTC. Once funds are de-obligated there is no guarantee the funds will be available for the project. Project funding reductions or unused funds realized after the obligation deadline return to MTC. Any STP/CMAQ funds that have been obligated but remain unused will be deobligated and returned to the Commission for reprogramming. Important Tip: If a project is canceled as a result of the environmental process, the agency does not have to repay reimbursed costs for the environmental activities. However, if a project is canceled after the environmental process is complete, or a project does not proceed to construction within 10 years, the agency is required to repay all reimbursed federal funds. Annual Obligation Plan California Streets and Highway Code 182.6(f) requires the regions to notify Caltrans of the expected use of OA each year. Any local OA, and corresponding apportionment that is not used by the end of the fiscal year will be redistributed by Caltrans to other projects in a manner that ensures the state continues to receive increased obligation authority during the annual OA redistribution. There is no provision in state statute the local apportionment and OA used by the state will be returned. MTC will prepare an annual Obligation Plan at the beginning of each federal fiscal year based on the funding programmed in the TIP, and the apportionment and OA expected to be available. This plan will be the basis upon which obligations will be made for the year. It is expected that the CMAs and project

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sponsors with funds programmed in the TIP will assist in the development of the plan by ensuring the TIP is kept up to date, and if necessary, review the plan prior to submittal to Caltrans. Projects listed in the plan that do not receive an obligation are subject to de-programming. Projects to be advanced from future years, or converted from ACA must be included in the plan to receive priority for obligations against available OA. If a project or project phase will not be ready for obligation in the year programmed, the agency responsible for the project should request to delay the project prior to entering the program fiscal year. The agency shall be considered committed to delivering the project (obligating the funds or transferring to FTA) once the program year becomes the current fiscal year, and the annual Obligation Plan has been developed for that year. In the event that OA is severely limited, such as at the end of a federal authorization act, and there is insufficient OA to obligate all of the projects in the annual obligation plan, restrictions may be placed on funds for agencies that are delivery-challenged (continue to have difficulty delivering projects within required deadlines) or have current projects that are in violation of funding deadlines. Specific Policy Provisions Projects selected to receive STP or CMAQ funding must have a demonstrated ability to use the funds within the established regional, state and federal deadlines. This criterion will be used for selecting projects for funding, and for placement of funding in a particular year of the TIP. Agencies with a continued history of being delivery-challenged and continue to miss funding delivery deadlines will have restrictions placed on future obligations and programming. It is the responsibility of the implementing agency to ensure the funds can be used within the established regional, state and federal deadlines and that the provisions of the regional funding delivery policy can be met. It is also the responsibility of the implementing agency to continuously monitor the progress of the programmed funds against regional, state and federal deadlines, and to report any potential difficulties in meeting these deadlines, to MTC, Caltrans and the appropriate county CMA within a timely manner, to seek solutions to potential problems well in advance of potential delivery failure or loss of funding. Specific provisions of the Regional Project Funding-Delivery Policy are as follow:

• Field Reviews

Implementing agencies are required to request a field review from Caltrans Local Assistance within 12 months of approval of the project in the TIP, but no less than 12 months prior to the obligation deadline of construction funds. This policy also applies to federal-aid projects in the STIP. The requirement does not apply to projects for which a field review would not be applicable, such as FTA transfers, regional operations projects and planning activities. Failure for an implementing agency to make a good-faith effort in requesting and scheduling a field review from Caltrans Local Assistance within twelve months of programming into the TIP could result in the funding being reprogrammed and restrictions on future programming and obligations. Completed field review forms must be submitted to Caltrans in accordance with Caltrans Local Assistance procedures.

• Environmental Submittal Deadline Implementing agencies are required to submit a complete environmental package to Caltrans for all projects (except those determined Programmatic Categorical Exclusion as determined by Caltrans at

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the field review), twelve months prior to the obligation deadline for right of way or construction funds. This policy creates a more realistic time frame for projects to progress from the field review through the environmental and design process, to the right of way and construction phase. If the environmental process, as determined at the field review, will take longer than 12 months before obligation, the implementing agency is responsible for delivering the complete environmental submittal in a timely manner. Failure to comply with this provision could result in the funding being reprogrammed. The requirement does not apply to FTA transfers, regional operations projects or planning activities.

• Disadvantaged Business Enterprise (DBE) Obligation of federal funds may not occur for contracted activities (any combination of environmental/ design/ construction/ procurement activities performed outside the agency) until and unless an agency has an approved DBE program and methodology for the current federal fiscal year. Therefore, agencies with federal funds programmed in the TIP must have a current approved DBE Program and annual methodology (if applicable) in place prior to the fiscal year the federal funds are programmed in the TIP. STP/CMAQ funding for agencies without approved DBE methodology for the current year are subject to redirection to other projects after February 1. Agencies should begin the DBE process no as early as possible to meet the February 1 deadline. Projects advanced under the Expedited Project Selection Process (EPSP) must have an approved DBE program and annual methodology for the current year (if applicable) prior to the advancement of funds. Important Tip: An agency DBE plan is required before the obligation of federal funds. Furthermore, an annual DBE methodology must be approved prior to the obligation of federal funds for services to be contracted out (such as environmental/ design/ construction/ procurement activities performed outside the agency). An annual DBE methodology may not be required if the activities (such as environmental or design) are to be performed in-house using internal staff resources. It generally takes a minimum of 90 days (including a minimum 45-day public comment period) to have an annual DBE methodology approved. Due to the complexities of the DBE requirements, agencies should contact Caltrans Local Assistance to determine whether an annual DBE methodology is required. If a DBE methodology is required, agencies are encouraged to begin the process by June of the preceding federal fiscal year so the process may be complete by the beginning of the federal fiscal year in October.

• Obligation/Submittal Deadline

Projects selected to receive STP and CMAQ funding must demonstrate the ability to obligate programmed funds by the established obligation deadline. This criterion will be used for selecting projects for funding, and for placement in a particular year of the TIP. It is the responsibility of the implementing agency to ensure the deadlines can be met. In order to ensure funds are obligated or transferred to FTA in a timely manner, the implementing agency is required to deliver a complete funding obligation / FTA Transfer request package to Caltrans Local Assistance by February 1 of the year the funds are listed in the TIP. Projects with complete packages delivered by February 1 of the programmed year will have priority for available OA, after ACA conversions that are included in the Obligation Plan. If the project is delivered after February 1 of the programmed year, the funds will not be the highest priority for obligation in the event of OA limitations, and will compete for limited OA with projects advanced from future years. Funding for which an obligation/ FTA transfer request is submitted after the February 1 deadline will lose its priority for OA, and be viewed as subject to reprogramming.

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Important Tip: Once a federal fiscal year (October 1 through September 30) has begun, and the Obligation Plan for that year developed, the agency is committed to obligating/transferring the funds by the required obligation deadline for that fiscal year. Funds that do not meet the obligation deadline are subject to de-programming by MTC. Within the CMA administered programs, such as the Local Streets and Roads Rehabilitation program, the CMAs may adjust delivery, consistent with the program eligibility requirements, up until February 1 of the programmed year, swapping funds to ready-to-go projects in order to utilize all of the programming capacity. The substituted project(s) must still obligate the funds within the original funding deadline. For funds programmed through regional competitive programs, such as the regional Transportation for Livable Communities (TLC) program, or for regional operations projects, such as 511, or for planning activities, such as the CMA planning activities, the Commission has discretion to redirect funds from delayed or failed projects. STP and CMAQ funds are subject to an obligation/FTA transfer deadline of April 30of the fiscal year the funds are programmed in the TIP. Implementing agencies are required to submit the completed request for obligation or FTA transfer to Caltrans Local Assistance by February 1 of the fiscal year the funds are programmed in the TIP, and receive an obligation/ FTA transfer of the funds by April 30 of the fiscal year programmed in the TIP. For example, projects programmed in FY 2008-09 of the TIP have an obligation/FTA transfer request submittal deadline (to Caltrans) of February 1, 2009 and an obligation/FTA transfer deadline of April 30, 2009. Projects programmed in FY 2009-10 have an obligation request submittal deadline (to Caltrans) of February 1, 2010 and an obligation/FTA transfer deadline of April 30, 2009. No extensions will be granted to the obligation deadline.

• Submittal Deadline: February 1 of the fiscal year programmed in the TIP. The Implementing Agency is required to submit a complete obligation/transfer package to Caltrans (3 months prior to the Obligation Deadline).

• Obligation Deadline: April 30 of the fiscal year programmed in the TIP. No extensions will be

granted to the obligation deadline.

February 1 - Regional submittal deadline. Complete package submittals, and ACA conversion requests for projects in the annual obligation plan received by April 1 of the fiscal year the funds are programmed in the TIP will receive priority for obligations against available OA. February 1 – April 30 - Projects submitted during this timeframe are subject to deprogramming. If OA is still available, these projects may receive OA if obligated by April 30. If OA is limited, these projects will compete for OA with projects advanced from future years on a first come-first serve basis. Projects with funds to be advanced from future years must request the advance prior to April 30, in order to secure the funds within that federal fiscal year. April 30 - Regional obligation deadline. Funds not obligated (or transferred to FTA) by April 30 of the fiscal year programmed in the TIP will be returned to MTC for reprogramming. No extensions of this deadline will be granted. Projects seeking advanced obligations against funds from future years should request the advance prior to April 30 in order to secure the funds within that federal fiscal year.

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The obligation deadline may not be extended. The funds must be obligated by the established deadline or they will be de-programmed from the project and redirected by the Commission to a project that can use the funds in a timely manner. Note: Advance Construction Authorization does not satisfy the regional obligation deadline requirement, except under certain circumstances such as when Caltrans uses ACA for state projects. Important Tip: In some years OA for the region may be severely limited, especially toward the end of the federal Authorization Act. When OA is limited, ACA conversions identified in the annual obligation plan and submitted before the deadline of February 1 have priority, followed by other projects in the annual obligation plan submitted before the deadline of February 1. Projects in the obligation plan but submitted after February 1 may have OA (and thus the obligation of funds) restricted and may have to wait until OA becomes available – either after May 1, when unused OA is released from other regions, or in the following federal fiscal year when Congress approves additional OA. Obligation requests submitted after the February 1 deadline have no priority for OA for that year. Agencies with projects not in good standing with regards to the deadlines of this policy may have OA restricted.

• Program Supplement Agreement (PSA) Deadline The implementing agency must execute and return the Program Supplement Agreement (PSA) to Caltrans in accordance with Caltrans Local Assistance procedures. The agency must contact Caltrans if the PSA is not received from Caltrans within 60 days of the obligation. This requirement does not apply to FTA transfers. Agencies that do not execute and return the PSA to Caltrans within the required Caltrans deadline will be unable to obtain future approvals for any projects, including obligation and payments, until all PSAs for that agency, regardless of fund source, meet the PSA execution requirement. Funds for projects that do not have an executed PSA within the required Caltrans deadline are subject to deobligation by Caltrans.

• Construction Advertisement / Award Deadline For the Construction (CON) phase, the construction/equipment purchase contract must be advertised within 6 months of obligation and awarded within 9 months of obligation. However, regardless of the advertisement and award deadlines, agencies must still meet the invoicing deadline for construction funds. Failure to advertise and award a contract in a timely manner could result in missing the subsequent invoicing and reimbursement deadline, resulting in the loss of funding. Agencies must submit the notice of award to Caltrans in accordance with Caltrans Local Assistance procedures, with a copy also submitted to the applicable CMA. Agencies with projects that do not meet these award deadlines will have future programming and OA restricted until their projects are brought into compliance. For FTA projects, funds must be approved/awarded in an FTA Grant within one federal fiscal year following the federal fiscal year in which the funds were transferred to FTA. Important Tip: Agencies may want to use the flexibility provided through Advance Construction Authorization (ACA) if it will be difficult meeting the deadlines. Agencies may consider proceeding with ACA and converting to a full obligation at time of award when project costs and schedules are more defined or when the agency is ready to invoice.

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• Invoicing Deadline Funds for each federally funded phase and for each federal program code must be invoiced against at least once every six months. Funds for each federally funded (Environmental (ENV/ PA&ED), Preliminary Engineering (PE), Final Design (PS&E) and Right of Way (R/W) phase and for each federal program code within these phases, must be invoiced against at least once every six months following obligation. Funds that are not invoiced at least once every 12 months are subject to de-obligation. There is no guarantee that funds will be available to the project once de-obligated. Funds for the Construction (CON) phase, and for each federal program code within the construction phase, must be invoiced and reimbursed against at least once within 12 months of the obligation, and then invoiced at least once every 6-months there after. Funds that are not invoiced and reimbursed at least once every 12 months are subject to de-obligation by FHWA. There is no guarantee that funds will be available to the project once de-obligated. If a project does not have eligible expenses within a 6-month period, the agency must provide a written explanation to Caltrans Local Assistance for that six-month period and submit an invoice as soon as practicable to avoid missing the 12-month invoicing and reimbursement deadline. Agencies with projects that have not been invoiced against and reimbursed within a 12-month period, regardless of federal fund source, will have restrictions placed on future programming and OA until the project is properly invoiced. Funds that are not invoiced and reimbursed against at least once every 12 months are subject to de-obligation by FHWA. Important Tip: In accordance with Caltrans procedures, federal funds must be invoiced against for each obligated phase and each federal program code at least once every six months. Funds that are not invoiced and reimbursed at least once every 12 months are subject to de-obligation by FHWA. There is no guarantee the funds will be available to the project once de-obligated. Agencies that prefer to submit one final billing rather than semi-annual progress billings can use ACA to proceed with the project, then convert to a full obligation prior to project completion. ACA does not meet the obligation deadline, but ACA conversions do receive priority in the annual obligation plan.

• Inactive Projects Most projects can be completed well within the state’s deadline for funding liquidation or FHWA’s ten-year proceed-to-construction requirement. Yet it is viewed negatively by both FHWA and the California Department of Finance for projects to remain inactive for more than twelve months. It is expected that funds for completed phases will be invoiced immediately for the phase, and projects will be closed out within six months of the final project invoice. Funds that are not invoiced and reimbursed at least once every 12 months are subject to de-obligation by FHWA. There is no guarantee the funds will be available to the project once de-obligated.

• Liquidation/Reimbursement Deadline Funds must be liquidated (fully expended, invoiced and reimbursed) within six years of obligation. California Government Codes 16304.1 and 16304.3 places additional restrictions on the liquidation of federal funds. Generally, federal funds must be liquidated (fully expended, invoiced and reimbursed)

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within 6 state fiscal years following the fiscal year in which the funds were appropriated. Funds that miss the state’s liquidation/ reimbursement deadline will lose State Budget Authority and will be de-obligated if not reappropriated by the State Legislature, or extended (for one year) in a Cooperative Work Agreement (CWA) with the California Department of Finance. This requirement does not apply to FTA transfers.

• Project Completion /Close-Out Deadline Implementing Agencies must fully expend federal funds on a phase one year prior to the estimated completion date provided to Caltrans. At the time of obligation, the implementing agency must provide Caltrans with an estimated completion date for that project phase. Any unreimbursed federal funds remaining on the phase after the estimated completion date has passed, is subject to project funding adjustments by FHWA. Projects must be properly closed out within six months of final project invoice. Projects must proceed to construction within 10 years of federal authorization of the initial phase. Federal regulations require that federally funded projects proceed to construction within 10 years of initial federal authorization of any phase of the project. Furthermore, if a project is canceled, or fails to proceed to construction in 10 years, FHWA will de-obligate any remaining funds, and the agency is required to repay any reimbursed funds. If a project is canceled as a result of the environmental process, the agency does not have to repay reimbursed costs for the environmental activities. However, if a project is canceled after the environmental process is complete, or a project does not proceed to construction within 10 years, the agency is required to repay all reimbursed federal funds. Agencies with projects that have not been closed out within 6 months of final invoice will have future programming and OA restricted until the project is closed out or brought back to good standing by providing written explanation to Caltrans Local Assistance, the applicable CMA and MTC.

Consequences of Missed Deadlines It is the responsibility of the implementing agency to ensure the funds can be used within the established regional, state and federal deadlines and that the provisions of the regional funding delivery policy, and other state and federal requirements, can be met. It is also the responsibility of the implementing agency to continuously monitor the progress of the project against these regional, state and federal funding deadlines and report any potential difficulties in meeting these deadlines to MTC, Caltrans and the appropriate county CMA within a timely manner. MTC, Caltrans and the CMAs are available to assist the implementing agencies in meeting the funding deadlines, and may be able to find solutions that avoid the loss of funds. Agencies that do not meet these funding deadlines risk the loss of federal funds. To minimize such losses to the region, and encourage timely project delivery, agencies that continue to be delivery-challenged and/or have current projects that have missed the funding deadlines will have future obligations, programming or requests for advancement of funds restricted until their projects are brought back into good standing. Projects are selected to receive STP or CMAQ funding based on the implementing agency’s demonstrated ability to delivery the projects within the funding deadlines. An agency’s proven delivery record will be used for selecting projects for funding and placement in a particular year of the TIP, and for receipt of OA.

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Regional Project Funding Delivery Policy Intent The intent of this regional funding delivery policy is to ensure implementing agencies do not lose any funds due to missing a federal or state funding deadline, while providing maximum flexibility in delivering transportation projects. It is also intended to assist the region in managing Obligation Authority, and in meeting federal financial constraint requirements. MTC has purposefully established regional deadlines in addition to state and federal funding deadlines to provide the opportunity for implementing agencies, the CMAs, Caltrans, and MTC to solve potential project delivery issues and bring projects back on-line in advance of losing funds due to a missed funding deadline. The policy is also intended to assist in project delivery, and ensure funds are used in a timely manner. Although the policy specifically addresses the regional STP and CMAQ funds managed by MTC, the state and federal deadlines sited apply to all federal-aid funds administered by the state (with few exceptions such as Congressionally mandated projects including Earmarks). Implementing agencies should pay close attention to the deadlines of other state and federal funds on their projects so as not to miss any other applicable funding deadlines. This regional Project delivery policy was developed by the San Francisco Bay Area’s Partnership, through the Project Delivery Task Force of the Bay Area Partnership’s Finance Working Group (FWG), consisting of representatives of Caltrans, the county Congestion Management Agencies (CMAs), transit operators, counties, and MTC staff.

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Milestone Deadline Authority Consequence of Missed Deadline

Programming in TIP Agency committed to obligate funds by April 30 of the year listed in TIP

Regional Deprogramming of funds and redirection to other projects that can use the OA.

Field Review (If applicable) Within 12 months of inclusion in TIP Regional Restrictions on future programming,

obligations and OA until deadline is met. Pre-Draft Environmental Document Submittal (Non-Cat Ex)

12 months prior to obligation of Right of Way or Construction funds

Regional Reprogramming of funds.

MTC Annual Obligation Plan

Beginning of each federal fiscal year Regional

Funds not identified in MTC’s annual Obligation Plan do not receive priority for OA and may need to wait until after May 1 to receive obligation/ transfer of funds.

Disadvantaged Business Enterprise (DBE) Goals (If Applicable)

Start by January 1, complete by February 1, of year programmed in TIP

Regional Deprogramming of funds and redirection to other projects that can use the OA if not obligated by April 30.

Obligation/ FTA Transfer Request Submittal

February 1 of year programmed in TIP Regional Project looses priority for OA. Other

projects in region may be given OA. Obligation/ Transfer to FTA

April 30 of year programmed in TIP Regional Deprogramming of funds and redirection

to other projects that can use the OA.

Release of Unused OA May 1 Caltrans Unused OA is made available for other regions to access.

End of Federal Fiscal Year. - OA no Longer Available August 30 Caltrans,

Federal

FHWA Obligation system shut down. Unused OA at the end of the fiscal year is taken for other projects. No provision that the funds taken will be returned.

Program Supplement Agreement (PSA)

60 days after receipt from Caltrans 6 months after obligation

Caltrans Restrictions on future programming, obligations and OA until deadline is met. De-obligation by Caltrans after 6 months.

Construction Advertisement 6 months after obligation Regional Restrictions on future programming,

obligations and OA until deadline is met

Construction Award 9 months after obligation Regional Restrictions on future programming, obligations and OA until deadline is met

Invoicing & Reimbursement

Agency must invoice and receive reimbursement at least once every 6 to 12-months following obligation of funds

Caltrans, Federal, Regional

Explanation in writing if funds not invoiced in past 6-month period. (Caltrans) Deobligation if project inactive for 12 months. (FHWA) Restrictions on future programming, OA and obligations if agency has not invoiced and received reimbursement at least once every 12-months after obligation. (MTC)

Liquidation 6 years after obligation State of California

Loss of State Budget Authority and de-obligation by State of California

Project Close-Out 6 months after final invoice

Caltrans, Regional

Explanation in writing. (Caltrans) Restrictions on future programming, obligations and OA. (MTC)

Attachment 3

cma block grant call for projects - san francisco …\cma block grant\call for projects\cma block...

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