Report to City Council
ID: 26-0318 Page 1
TO: Mayor and City Council
FROM: Melissa Walker, Public Works Director/City Engineer
AGENDA DATE: September 1, 2026
TITLE: ACCEPTANCE OF THE CALTRANS SUSTAINABLE
TRANSPORTATION PLANNING GRANT AWARD FOR
THE VEHICLE MILES TRAVELED REDUCTION AND
MITIGATION FEE PROGRAM AND ADOPTION OF A
RESOLUTION (REPORT OF: PUBLIC WORKS)
(DISTRICT: ALL DISTRICTS)
TITLE SUMMARY: Accept And Approve The Caltrans Sustainable Transportation Planning Grant Award For The Vehicle Miles Traveled Reduction And Mitigation Fee Program And Adopt Resolution 2026 -XX
DISTRICT: All Districts
Recommendation(s)
That the City Council:
1. Accept and approve the Sustainable Transportation Planning Grant Award Agreement between the California Department of Transportation (Caltrans) and the City of Moreno Valley (City) for the Vehicle Miles Traveled Reduction (VMT) and Mitigation Fee Program in the amount of up to $265,592 (Fund 3001) with a City local match of $34,410 (Fund 3004);
2. Adopt Resolution 2026-XX, a resolution of the City Council of the City of Moreno Valley to authorize the City Manager or his/her designee to execute the Restricted Grant Agreement and any subsequent agreements, extensions, or amendments, subject to the approval of the City Attorney;
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3. Authorize to amend the adopted Capital Improvement Plan (CIP) for Fiscal Years 2025- 26 and 2026 -27 to include the Vehicle Miles Traveled Reduction and Mitigation Fee Program as Project Number 810 0030 for implementation;
4. Authorize the City Manager, or his/her designee, to award and execute an Agreement, and any subsequent agreements, extensions, or amendments, with a qualified consultant for the Vehicle Miles Traveled Reduction and Mitigation Fee Program, Project Number 810 0030, subject to the City’s procurement policy and approval of the City Attorney; and
5. Authorize a budget adjustment as set forth in the Fiscal Impact section of this report.
SUMMARY
This report recommends that the City Council accept t he Caltrans Sustainable Transportation Planning Grant (STPG) funding for the Vehicle Miles Traveled Reduction and Mitigation Fee Program , and adopt Resolution 2026 -XX, which authorizes the City Manager, or his/her designee, to execute the Restricted Grant Agreement with Caltrans and to award and execute a consultant agreement necessary to implement the program.
The total estimated project cost is $300,000, and acceptance of grant funding is for up to $265,592, with a City local match requirement of $34,410.
DISCUSSION
On May 29, 2026, Caltrans announced the Sustainable Transportation Planning Grant Program awards for Fiscal Year (FY) 2026 -27. The City of Moreno Valley was awarded $265,592 to develop the VMT Reduction and Mitigation Fee Program.
The VMT Reduction and Mitigation Fee Program will assist the City in complying with the requirements of Senate Bill 743 (SB 743), which established VMT as the primary transportation impact metric under the California Environmental Quality Act (CEQA). The program will establish a comprehensive framework to evaluate transportation impacts of new development and identify appropriate mitigation strategies to support sustainable transportation objectives.
As part of the planning effort, the City will develop VMT thresholds and evaluation criteria, identify eligible mitigation projects and programs, eva luate potential mitigation fee methodologies, and recommend updates to the City's Development Impact Fee (DIF) Program and Traffic Impact Analysis Guidelines. The project will also include coordination with regional and state agencies, stakeholder outreach, and public engagement to ensure the program reflects local transportation needs while supporting regional mobility and environmental objectives.
Acceptance of the grant funding and adoption of the attached Resolution will authorize the City to execute all documents necessary to implement the grant-funded planning effort in accordance with Caltrans program requirements. The proposed program supports the City's ongoing commitment to sustainable transportation planning, improved mobility, and compliance with State environmental regulations while positioning the City for future growth and transportation investments.
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ALTERNATIVES
1. Approve and authorize the recommended actions as presented in this staff report.
This alternative will allow the City to accept th e awarded Caltrans Sustainable Transportation Planning Grant funding and allow the Vehicle Miles Traveled Reduction and Mitigation Fee Program to move forward in a timely manner. Staff recommends this alternative.
2. Do not approve and authorize the recommended actions as presented in this staff report. This alternative will result in a loss of the Caltrans Sustainable Transportation Planning Grant funding. Staff does not recommend this alternative.
FISCAL IMPACT
This project is funded by the Caltrans Sustainable Transportation Planning Grant. The total estimated cost will be $300,000, with up to $265,592 in grant funding allocated to Fund 3001 (Capital Improvement Grants). Additionally, the City’s local match obligation of $34,410 will be funded with F und 3004 (Traffic Signal Mitigation Project). There is no impact on the General Fund.
Category Fund GL Account No. Type Original
Budget
Proposed
Adjustments
Revised
Budget
CIP Capital Improvement
Grants (3001)
3001-99-99-93001-486010
Project No. 810 0030-3001-98
Rev $0 $265,592 $265,592
CIP Capital Improvement
Grants (3001)
3001-70-76-80010-720199
Project No. 810 0030-3001-99
Exp $0 $265,592 $265,592
CIP Traffic Signal Mitigation
Project
3004-70-76-80010-720199
Project No. 810 0030-3004-99
Exp $0 $34,410 $34,410
CIP
(Transfer In)
Traffic Signal Mitigation
Project
3004-99-99-93004-802024 Rev $0 $34,410 $34,410
CIP
(Transfer Out)
Traffic Signal Mitigation
Project
2024-99-99-92024-903004 Exp $0 $34,410 $34,410
NOTIFICATION
Publication of the agenda.
PREPARATION OF STAFF REPORT
Prepared By: Department Head Approval:
Ronald Boromeo Melissa Walker, P.E.
Associate Engineer Public Works Director/City Engineer Concurred By: Concurred By:
Seth Jenison, P.E., T.E., PTOE Harold Zamora, P.E.
Principal Engineer/City Traffic Engineer Engineering Division Manager/Assistant City Engineer
CITY COUNCIL GOALS
Public Facilities and Capital Projects: Ensure that needed public facilities, roadway improvements, and other infrastructure improvements are constructed and maintained.
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Public Safety: Provide a safe and secure environment for people and property in the community, control the number and severity of fire and hazardous material incidents, and provide protection for citizens who live, work and visit the City of Moreno Valley.
Revenue Diversification and Preservation: Develop a variety of City revenue sources and policies to create a stable revenue base and fiscal policies to support essential City services, regardless of economic climate.
CITY COUNCIL STRATEGIC PRIORITIES
1. Economic Development
2. Public Safety
3. Library
4. Infrastructure
5. Beautification, Community Engagement, and Quality of Life
6. Youth Programs
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Report Approval Details
Document Title: STAFFREPORT_PW_TED_VMT_PROGRAM.docx
Attachments: - City Resolution _VMT Program_STPG Award FY 2026_27_v08122026.doc
- VMT_STPG_Grand_Award_Letter.pdf
Final Approval
Date:
Aug 26, 2026
This report and all of its attachments were approved and signed as outlined below:
Melissa Walker
Sean Kelleher
Anna Chacon
Felicia London, MPA
Launa Jimenez
Brian Mohan
Patty Rodriguez