Related Links

Agenda Item # 8

BOARD MEMORANDUM

RECOMMENDATION: 

Authorize the General Manager to submit Federal Fiscal Year (FFY) 2004 grant applications and execute grant agreements with the Federal Transit Administration (FTA) for the Section 5307 Urbanized Area Formula Program, Section 5309 Fixed Guideway / New Rail Starts / Bus and Bus Facilities Programs, and Section 3037 Job Access and Reverse Commute Program.

BACKGROUND / DISCUSSION:

Congress appropriates funds for FTA grant programs through the enactment of the annual Department of Transportation Appropriations Act.  Under normal conditions, VTA staff requests Board authorization to submit its annual FTA grant applications after the enactment of the Transportation Appropriations Act and the grant program amounts are published in the Federal Register.  However, similar to last year, Congress has delayed approval of the FFY 2004 Transportation Appropriations Act.  It is anticipated that Congress will finalize the FFY 2004 transportation appropriations in the next one to two months. 

Even though we do not expect the final appropriations numbers to be available until later, we are seeking Board approval to submit FFY 2004 FTA grants at this time, based upon current estimates of available grant funds.  This will enable VTA to submit the grant applications as soon as the actual appropriations are known.  FTAs approval of VTAs FFY 2004 grant application is critical to help meet our operating, capital and maintenance needs. 

A summary of the proposed grant projects for FFY 2004 is provided below.  The amounts reflected in the proposed program are based upon preliminary estimates provided by the Metropolitan Transportation Commission for the formula programs.  The final FFY 2004 appropriations numbers may differ.  In addition, for discretionary grant programs, estimated amounts for potential earmarked projects are also presented.  The final earmarks will result from Conference Committee deliberations.  These will also be published in the Federal Register along with the Formula Program amounts in early 2004.

FTA Section 5307 Urbanized Area Formula Grant Program

Preliminary estimates from the Metropolitan Transportation Commission (MTC) for FY 2004 indicate that the total available from the San Jose and Gilroy Morgan Hill Urbanized Areas (UZA) is $41,241,195; with $40,255,533 provided from the San Jose UZA and $985,662 provided from the Gilroy Morgan Hill UZA.  Of this amount, MTC will deduct $16,597 for the MTC FTA Liaison position.  Therefore, a total of $41,224,598 is available for VTA for Section 5307 projects in FY 2004.

Of the total $41,224,598 available, VTA proposes to utilize $40,822,373 towards Preventive Maintenance costs to help meet our operating and capital needs in FY 2004.  The remaining $402,225 will be programmed for two transit enhancement projects, as required by TEA-21, including $178,000 for the Sunnyvale Transit Center and $224,225 for restoration of the Vasona Water Tower/Tank located at the Diridon Station. 

In addition, the FFY 2004 grant will include $1,387,743 in carryover funds from last year for FFY 2003 Preventive Maintenance, for a total Section 5307 funding of $42,612,341. 

FTA Section 5309 Fixed Guideway / Bus and Bus Facilities / New Start Rail Programs

Under the Section 5309 Program, an estimated $1,229,556 in Section 5309 Fixed Guideway Program funds will be available to the San Jose UZA in FFY 2004.  These funds will be utilized to fund the system-wide T-Signal Retrofit project.  In the Bus and Bus Facilities Program, two projects are proposed for possible earmarks.  These are: 1) purchase of Zero Emissions Buses (ZEBs); and 2) the Palo Alto Intermodal Transit Center sponsored by the City of Palo Alto.  Under the Rail New Starts Program, the BART to San Jose project is proposed for earmark funds.  An agreement needs to be reached between the Senate and the House before the FFY 2004 earmarks are finalized.

FTA Section 3037 Job Access & Reverse Commute (JARC) Program (Carryover FFY 2003)

The Section 3037 Job Access and Reverse Commute (JARC) demonstration project received an earmark of $492,000 in FFY 2003 funds.  The grant funds will be used to continue the Guaranteed Ride Program for CalWORKS recipients. 

Proposed FFY 2003 FTA Grant Program Summary

VTAs proposed FFY 2004 FTA Section 5307, Section 5309 and Section 3037 projects are summarized below.  The project amounts are only estimates at this time.  It is anticipated that there will only be minor adjustments to the Formula Programs that include Section 5307 and Section 5309 Fixed Guideway Program funds once the final apportionments are available.

We will submit final grant projects, and include the discretionary program earmark projects covered under Section 5309 Bus Facilities and New Starts, following Congressional action.

ESTIMATED
FFY 2004 FTA Section 5307 / Section 5309 / Section 3037
GRANT PROGRAM SUMMARY

¹ Local match provided by the Measure B funded Vasona LRT Project
² Local match provided by City of Sunnyvale
³ Local match provided by County of Santa Clara

POTENTIAL
FFY 2004 EARMARKS SUMMARY

ALTERNATIVES:

There are no other practical alternatives.  The Federal transit grants will provide funding for important capital and maintenance projects for VTA.

FISCAL IMPACT: 

The current fund estimates for the grant formula programs indicate that VTA will receive an estimated $42,612,341 in Federal Section 5307 UZA Formula funds, $492,000 in Section 3037 JARC funds, and $1,229,556 in Section 5309 Fixed Guideway funds.  The required local match ($56,056) for the Vasona Water Tower/Tank Restoration project will be derived from the Measure B funded Vasona LRT project, and the $44,5000 in local match for the Sunnyvale Transit Center will be provided from the City of Sunnyvale.  The County of Santa Clara will contribute $492,000 in local match for the JARC grant.  The local match in the amount of $10,814,917 for Preventive Maintenance and the T-Signal projects are included in the current VTA budget.

Minor adjustments will be made to these numbers when Congress approves the final appropriations.  Once the final numbers are known, the actual federal dollar amounts along with the local matching share will be incorporated into VTAs FY 2004 Budget.  The discretionary program earmark projects covered under the Section 5309 Rail New Starts and Bus Facilities will be finalized following Congressional action.

Click here to return to the Board Agenda Index