Fremont City Council Meeting: 07/16/24 07:00 PM
3300 Capitol Avenue Div/Dept: Public Works
Fremont, CA 94538 Category: Grants
SCHEDULED
Sponsors:
COUNCIL STAFF REPORT (ID # 5215) DOC ID: 5215
Updated: 7/11/2024 3:52 AM by Dina Lewis Page 1
MTC GRANT FOR FREMONT BOULEVARD COMPLETE STREET PROJECTS - Accept $4,098,000 in Grant Funds From the Metropolitan Transportation Commission’s (MTC) Housing Incentive Pool (HIP) Program; Adopt Resolution of Local Support and the Allocation of Funds to Planned Complete Street Projects Along Fremont Boulevard in the Centerville and Downtown Areas; Adopt Resolution of Compliance with State Housing Laws; Appropriation Actions; and Make Findings of CEQA Exemption.
Contact Persons:
Name: Jeanne Suyeishi Hans Larsen
Title: Principal Civil Engineer Public Works Director
Div/Dept: Public Works Public Works
Phone: 510-494-4728 510-494-4722
E-Mail: [email protected] [email protected]
Executive Summary: The purpose of this report is to accept transportation grant funds from the Metropolitan Transportation Commission (MTC), which are provided as a reward for implementing affordable housing projects. Council action is needed to identify the proposed use of the funds for projects consistent with MTC’s transportation plans. Funds are proposed to be used to support “complete street” projects already in design and located within MTC’s priority development areas along Fremont Boulevard in the Centerville and Downtown areas. Receipt of funds is conditioned upon the City’s compliance with State housing laws.
BACKGROUND: In October 2018, the MTC established the Housing Incentive Pool (HIP) program to fund transportation projects for cities that promote the production and preservation of affordable housing.
In March 2023, MTC awarded $71 million in HIP funds to the top 15 jurisdictions that issued certificates of occupancy for the greatest number of eligible housing (including both newly built units and those preserved as affordable) over the five calendar years of 2018 through 2022. Of the 15 cities receiving HIP funds, Fremont was ranked third and awarded $4,098,000. It is noted that the top five cities included 1) San Francisco, 2) Oakland, 3) Fremont, 4) San Jose, and 5) Richmond.
Projects that qualify for these funds must be eligible to receive federal funds, must be eligible for MTC’s One Bay Area Grant (OBAG2) program, must comply with MTC’s Complete Streets Policy, must comply with MTC’s Regional Project Delivery Policy including the adoption of a Resolution of Local Support for the proposed projects, and must comply with state housing laws related to Surplus Lands, Accessory Dwelling Units, Density Bonuses, and Housing Elements.
DISCUSSION/ANALYSIS: Based on the HIP grant funding requirements, staff proposes to submit Letters of Interest to have the funds used for already planned complete street improvement projects along Fremont Boulevard in the Centerville and Downtown areas as described below. Both projects are within MTC’s priority development areas and the project Council Staff Report (ID # 5215) Meeting of July 16, 2024 Updated: 7/11/2024 3:52 AM by Dina Lewis Page 2
scopes are consistent with “multimodal complete street” plans approved as part of Plan Bay Area. Typical improvements include physically separated bikeways, enhancements for pedestrian safety, repair of damaged sidewalks and pavement, upgraded bus stops, and modernization of traffic signals.
Proposed Projects for HIP Funding
Fremont Boulevard from Alder
Avenue to Mattos Drive
(“Centerville Complete Streets”)
Currently in Final Design. City has accepted other grants for project design and construction from Alameda County Transportation Commission ($2M); State Affordable
Housing and Sustainable Communities ($2.8M); and
Federal One Bay Area Grant ($6.51M)
Fremont Boulevard from
Country Drive to Walnut Avenue
(“Downtown Area”)
Starting Final Design in Fall 2024. City has accepted
other grants for project design and construction from
Alameda County Transportation Commission ($1.1M);
and BART ($3M).
The Centerville Complete Streets project is planned to go out for construction bids in Summer 2024. The HIP grant funds are proposed to address any construction funding gap for this project. Any unused HIP funds would then be made available for the Fremont Boulevard “Downtown” project, which is planned to go out for construction bids in 2025.
It is noted that Caltrans has recently authorized federal One Bay Area Grant (OBAG2) funds in the amount of $6.51 million for construction and construction engineering for the Centerville Complete Streets project. Staff recommends appropriating these funds to the project as well.
For each of the projects, the City must execute grant funding agreements with MTC. It is recommended that the City Manager or her designee be authorized to execute the grant agreements.
FISCAL IMPACT: The recommended actions will allow the City to receive new grant funding from MTC’s HIP program in the amount of $4,098,000. An additional appropriation action is proposed to acknowledge a prior State OBAG2 grant award in the amount of $6,510,000 for the Centerville Complete Streets project.
ENVIRONMENTAL REVIEW: The recommended actions are exempt from the California Environmental Quality Act (CEQA) because they are an administrative fiscal activity and not projects pursuant to CEQA Guidelines section 15378 (administrative and funding activity not a “project” under CEQA) and Section 15061 (no possibility the activity may have significant effect on the environment). Implementation of the projects using proposed grant funding will include preparation of environmental clearances in accordance with CEQA and National Environmental Protection Act (NEPA) guidelines.
ATTACHMENTS:
• Draft Reso Fremont HIP Local Support
• Draft Resolution HIP Housing Laws
Council Staff Report (ID # 5215) Meeting of July 16, 2024 Updated: 7/11/2024 3:52 AM by Dina Lewis Page 3
RECOMMENDATION: Approval of the following actions related to the proposed use of MTC/HIP grants:
1. Accept grant funds in the amount of $4,098,000 and appropriate the funds to PWC9117-522 (Fremont Boulevard Multimodal Corridor Program).
2. Adopt a resolution of local support authorizing the City Manager or designee to execute grant funding agreements and prepare any other documents required to implement said agreements with MTC.
3. Adopt a resolution of compliance with State housing laws including surplus lands, accessory dwelling units, density bonuses and housing elements.
4. Appropriate OBAG2 grant funds in the amount of $6,510,000 to PWC8946-522 (Centerville Complete Streets).
5. Find that the actions are exempt from environmental review as a separate and independent base for CEQA compliance, under CEQA Guidelines, Section 15378 (administrative and funding activity not a “project” under CEQA) and Section 15061 (no possibility the activity may have significant effect on the environment).