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Agenda Item # 10

BOARD MEMORANDUM

RECOMMENDATION:

Review and recommend that the VTA Board of Directors approve the programming of $48,101 in Transportation Fund for Clean Air Program Manager (TFCA 40%) funds to Segment 2 of Morgan Hill's Little Llagas Creek Trail.

BACKGROUND:

The Transportation Fund for Clean Air (TFCA) is generated by a $4.00 surcharge on vehicle registrations. The Bay Area Air Quality Management District (BAAQMD) administers these funds in the nine-county Bay Area. Funds are available for allocation to alternative fuels, arterial management, bicycle, and trip-reduction projects that reduce vehicle emissions.

BAAQMD returns 40% of these funds to the county in which they are collected for allocation by a “program manager.” This fund is called the TFCA Program Manager Fund (TFCA 40%) Fund. VTA is the program manager for Santa Clara County. Project sponsors apply directly to VTA for funding. The VTA Board of Directors allocates these funds on a competitive basis to projects in Santa Clara County, subject to approval by BAAQMD.

At its August 3, 2000 meeting, the VTA Board of Directors designated half of the annual TFCA 40% allocation to bicycle projects in the Countywide Bicycle Expenditure Plan (BEP) for a ten-year period. On December 9, 2004, the VTA Board extended the TFCA 40% commitment to the bicycle program until 2030.

At its May 3, 2007 meeting, the VTA Board approved the programming of $2,591,431 in FY 2007/08 Transportation Fund for Clean Air Program Manager (TFCA 40%) funds. Of this, $1,520,653 was for six competitive projects, submitted by the VTA Member Agencies, and $1,070,778 to MTC’s Vehicle Buyback Program as the third and final part a fund exchange for CMAQ funds.

DISCUSSION:

During the FY2007/08 TFCA programming exercise described above, a project sponsor canceled two projects from FY04/05, with concurrence from VTA and BAAQMD. After the FY07/08 TFCA program was approved, $48,101 in unallocated funds from the cancelled projects remained in the TFCA account. BAAQMD policy states that "Any TFCA County Program Manager funds that are not allocated within six months of the Air District Board of Directors approval of the Program Manager’s Expenditure Programs shall be allocated to eligible projects by the Air District. Program Managers may choose to add additional projects after the submittal of their original Expenditure Program, if the corresponding costs can be covered by unallocated funds. Any such requests must be submitted in writing by the Program Manager to the Air District TFCA contact for that county and approved by the Air District Board of Directors."

In order to expeditiously allocate the $48,101 described above, VTA staff reviewed potential projects in the Bicycle Expenditure Program. Staff identified Morgan Hill's Little Llagas Creek Trail Segment 2 project as a suitable candidate. After performing the requisite cost-effectiveness analysis, staff recommends allocating the remaining $48,101 to this project.

ALTERNATIVES:

The VTA Board may approve other programming alternatives.  BAAQMD will take the funds if the VTA Board does not approve them at this meeting.

FISCAL IMPACT:

No funding from the VTA Transit Enterprise Fund will be used for this work.

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