Fremont City Council Meeting: 07/07/26 07:00 PM
3300 Capitol Avenue Div/Dept: Public Works
Fremont, CA 94538 Category: Grants
SCHEDULED
Sponsors:
COUNCIL STAFF REPORT (ID # 5754) DOC ID: 5754
Updated: 6/30/2026 1:04 PM by Alberto Quintanilla Page 1 Auto Mall Parkway Median Improvement Project - Approval of Actions to Accept Federal Grant Funds in the Amount of $850,000 and Appropriate Funds for the Auto Mall Parkway Median Improvement Project (PWC9119); Authorize the City Manager to Execute Grant Funding Agreement; and Make Findings of CEQA Exemption.
Contact Persons:
Name: Jason Liu Matt Cano
Title: Associate Civil Engineer Public Works Director
Div/Dept: Public Works Public Works
Phone: 510-494-4793 510-494-4722
E-Mail: [email protected] [email protected]
Executive Summary: The purpose of this report is to incorporate federal grant funds awarded by the U.S. Department of Housing and Urban Development (HUD) into the City’s budget and to facilitate implementation of funded activities related to improving the median islands on Auto Mall Parkway between Grimmer Boulevard and Fremont Boulevard.
Background: On September 17, 2024, the City Council accepted $850,000 HUD grant funds that were appropriated under the FY2024 federal budget for the Auto Mall Parkway Median Improvement Project. A portion of this grant was used to contribute to the project design costs.
On February 3, 2026, the U.S. Congress adopted the Fiscal Year (FY) 2026 Consolidated Appropriations Act in Economic Development Initiative (EDI) – Community Project Funding (CPF) to support over 2,000 projects across the country. With support from U.S. representative Rho Khanna (California's 17th congressional district), an additional budget allocation of another $850,000 was provided to the Auto Mall Parkway Median Improvement Project for the City of Fremont.
Discussion/Analysis: Auto Mall Parkway is a four-lane arterial connecting Interstate Routes 680 and 880 and serves as a gateway to Fremont’s major industrial and retail areas, including the Tesla electric vehicle factory, Fremont Auto Mall, and the Pacific Commons Mall. The corridor provides goods movement, access to jobs, and is used by approximately 40,000 people daily. The center median of Auto Mall Parkway also contains support towers for high voltage electrical transmission lines operated by San Council Staff Report (ID # 5754) Meeting of July 7, 2026 Updated: 6/30/2026 1:04 PM by Alberto Quintanilla Page 2 Francisco Public Utilities Commission (SFPUC) that supply power to the region.
This project will provide attractive landscaping to upgrade a 5.1-acre barren center median area along a major highway corridor in Silicon Valley. The proposed project will install irrigation and plant drought-tolerant shrubs and low growing trees to beautify the corridor. The project limits are for a half mile segment between Fremont Boulevard and Grimmer Boulevard.
Advocacy for the project is from residents and businesses to support community pride and economic vitality.
Fiscal Impact: The total project cost is estimated at $6.2 million. The current funding secured for the project is $4.221 million resulting in a funding gap of approximately $2.0 million. Staff recommend that the City Council appropriate $850,000 of the EDI-CPF grant funds to the Auto Mall Parkway Median Improvement Project (PWC9119) in the Federal Capital Grants Fund (Fund 522) which will then decrease the funding gap to $1.2 million. In Spring 2027, the City will address the project funding shortfall issue as part of the regular update to the City’s Capital Improvement Program (CIP) and either identify additional funding for the complete project or consider constructing the project in phases.
Environmental Review: The recommended actions are exempt from the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines Section 15061(b)(3) in that it is an administrative or governmental funding mechanism or fiscal activity that does not involve a commitment to any specific project and is not a project that has the potential for causing a significant effect on the environment.
Attachments: None.
Recommendation: Approval of the following actions related to federal grant funds for the Auto Mall Parkway Median Improvement Project (PWC9119):
1. Accept HUD grant funds in the amount of $850,000 and appropriate the funds to PWC9119-522.
2. Authorize the City Manager or designee to execute the grant funding agreement and prepare any other documents required to implement said agreement.
3. Find that the action taken is not a project under CEQA.