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8 DATE: February 3, 2025
TO: Mayor and Members of City Council
VIA: Stefan Chatwin, City Manager
Marlene Subhashini, Assistant City Manager
FROM: Andrew Brozyna, Public Works Director
DEPARTMENT: Public Works
SUBJECT: PRIMARY GRANT AGREEMENT WITH THE SAN MATEO
COUNTY TRANSPORTATION AUTHORITY FOR FUTURE
MEASURES A AND W FUNDING
RECOMMENDATION
It is recommended that the City Council adopt a resolution authorizing the City Manager to execute a Primary Grant Agreement with the San Mateo County Transportation Authority for future Measures A and W funding; and finding the Agreement exempt from the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines section 15061(b)(3).
EXECUTIVE SUMMARY
Historically, the San Mateo County Transportation Authority (TA) has executed separate funding agreements, memoranda of understanding, and associated amendments for each phase of each project funded by Measures A and W. To streamline the contracting process, the TA has developed a new Primary Grant Agreement (PGA). In order to be eligible for TA Measures A and W funding over the next 10 years, the TA requires sponsors’ governing boards to adopt resolutions approving a primary grant agreement no later than March 1, 2025.
BACKGROUND
In 1988, San Mateo County voters approved Measure A, a 20-year half-cent sales tax to fund and leverage additional funding for transportation projects and programs in San Mateo County. The approval of Measure A created the TA to manage and administer the
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8 sales tax revenues generated in conformance with the Transportation Expenditure Plan (TEP).
The 1988 sales tax expired on December 31, 2008. In 2004, San Mateo County voters reauthorized the Measure A half-cent sales tax and adopted a new TEP for an additional 25 years (from January 1, 2009, through December 31, 2033). The TEP established funding categories for Transit; Highways Improvements; Local Streets/Transportation; Grade Separations; Pedestrian and Bicycle Improvements; and Alternative Congestion Relief projects.
In 2018, San Mateo County voters approved Measure W, a 30-year one-half percent sales tax, from July 1, 2019 through June 30, 2048, to fund and leverage additional funding for transportation projects and programs in San Mateo County that are consistent with the Measure W Congestion Relief Plan. The San Mateo County Transit District (District) levies this tax and administers investments for the 50% of the proceeds assigned to the County Public Transportation Systems category in the Congestion Relief Plan. The TA is responsible for administering the remaining 50% of funds assigned to: Countywide Highway Congestion Improvements; Local Safety, Pothole and Congestion Relief Improvements including Grade Separations; Bicycle and Pedestrian Improvements; and Regional Transit Connections.
Historically, the TA has executed separate funding agreements and memoranda of understanding, and associated amendments for each phase of each project funded by Measures A and W.
ANALYSIS
To streamline the contracting process, the TA has developed a new PGA through which the TA and project sponsors will document the structure of their relationships and related obligations. Concise individual project supplements will detail each funded project and any specifically-associated requirements during the 10-year term of the PGA.
To be eligible for TA Measures A and W funding over the next 10 years, the TA requires sponsors’ governing boards to adopt resolutions no later than March 1, 2025, authorizing the sponsors’ chief executive, mayor or designee to sign a PGA with the TA. The PGA language is included as Attachment 2.
Foster City uses Measure A and Measure W funding for eligible Streets-related Capital Improvement Projects (CIP), including the annual Street Resurfacing projects as well as traffic signal projects and bicycle and pedestrian improvement projects. Maintaining these funding sources provides an alternative to the City Capital Fund and the General Fund as a means for maintaining Foster City’s Pavement Condition Index (PCI).
CALIFORNIA ENVIRONMENTAL QUALITY ACT
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8 The approval of the Primary Grant Agreement is not subject to review under the California Environmental Quality Act (CEQA) pursuant CEQA Guidelines 15061(b)(3), as it can be seen with certainty that there is no possibility that this action may have a significant effect on the environment. Any projects undertaken with the grant funds will be subject to a Project Supplement document and the City will conduct appropriate environmental review for those individual projects.
FISCAL IMPACT
Over the past ten years, Foster City has received almost $6.7 million in Measure A and Measure W funding that has been used to maintain the City’s PCI and street network.
Approving the execution of the attached agreement will enable the City to continue to qualify for available funding for these purposes.
CITY COUNCIL VISION, MISSION, AND VALUE/PRIORITY AREA
Facilities and Infrastructure
ATTACHMENTS:
Attachment 1 – Resolution
Attachment 2 – Primary Grant Agreement