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The current act (SAFETEA) originally scheduled to expire on September 30, 2009 is still in effect through several legislative extensions. The funding provided to our area through this legislation includes Surface Transportation Program (STP) and Congestion Mitigation and Air Quality (CMAQ) funds. In December 2009 the Commission adopted an overall framework directing how approximately $1.4 billion in STP and CMAQ funds were to be allocated over the following six years (2010- 2015). The first three years (Cycle 1) of this period were committed to projects and programs and the overall framework provided policy direction for the second three years (Cycle 2). Staff proposes an alternative to the current Cycle 2 framework that better integrates the region’s federal transportation program with land-use and housing policies by providing incentives for the production of housing with supportive transportation investments. Attachment A summarizes this framework and proposal for Cycle 2. OneBayArea Grant Program As shown in the chart below, over time the county congestion management agencies (CMAs) have been given increased responsibility for project selection for an increasing share of funding coming to the region. Program and Project Selection Evolves over Past Two Decades For Cycle 2, staff proposes to continue this trend by shifting a larger portion of discretionary federal funding to local jurisdictions for taking on a larger share of the region’s housing production. Further, additional flexibility is proposed for CMAs to address their respective transportation needs. Specifically, the proposal would: PastLongRangePlanDiscretionaryFunding Assignments $Ͳ $1.0 $2.0 $3.0 $4.0 $5.0 MTC CMAs MTC CMAs MTC CMAs 2001RTP T2030 T2035Billions Lifeline Bike/Ped TLC LS&R T20302001RTP T2035 MTC Planning Committee/ABAG Administrative Committee: OneBayArea Grant (cont.) July 8, 2011 Page 2 ƒShift more Funding to Locally Managed OneBayArea Grant Program: Dedicate $211 million or roughly 40% of the Cycle 2 funding program to a new OneBayArea Grant. The funding for the OneBayArea Grant is the result of merging many of the programs in the Cycle 2 framework into a single flexible grant program and is roughly a 70% increase in the funding distributed to the counties as compared to the Cycle 2 framework adopted by the Commission. By comparison, the status quo approach for Cycle 2 would result in 22% going to County Congestion Management Agency (CMA) programs down from 30% in Cycle 1 ƒAdd Flexibility by Eliminating Program Categories: The One Bay Grant proposal provides additional flexibility under Cycle 2 by eliminating required program categories and combining funding for TLC, Bicycle, Local Streets and Roads Rehabilitation, and Safe Routes to School. See figure illustrating this change on the following page. Project selection will be limited to a degree by the project eligibility limitations of CMAQ which will make up approximately half of the funds that each county will receive. LSR TLC Bike Bicycle, TLC, LSR, SR2S Original Framework $122M Proposed OneBayArea Grant $211M ƒLeverage Outside Funds to Grow Program and Meet More Objectives: Additional opportunities could be sought through other regional programs, other non-federal sources for affordable housing, and other local funds to augment program objectives. As a start, the Air District proposes $6 million from its Regional Transportation for Clean Air (TFCA) Program. TFCA eligibility considerations will be guiding the use of these funds in the overall program. ƒContinue Key Regional Programs: The remaining funding is targeted to continue regional programs such as Regional Operations, Freeway Performance Initiative, and Transit Capital Rehabilitation. Refer to Attachment A-2 for a description of these regional programs. ƒEstablish a Priority Conservation Area Planning Program: This new $5 million program element will provide financial incentives for counties with populations under 500,000 for MTC Planning Committee/ABAG Administrative Committee: OneBayArea Grant (cont.) July 8, 2011 Page 3 preservation of resource area and farmland, as defined in California Government Code Section 65080.01. Distribution Formula for the OneBayArea Grant (Attachments B, C, D) Staff proposes a distribution formula for OneBayArea Grant funding (Attachment B) that includes housing incentives to support the SCS and promote effective transportation investments that support focused development. In order to ease the transition to this new funding approach, staff is also recommending a 50% population share factor in the formula: 1. Formula to Counties: The proposed distribution formula to the counties includes three components: 50% population, 25% Regional Housing Needs Allocation (RHNA) for 2007-2014, and 25% actual housing production. This approach provides incentives for both future housing commitments and actual housing production. The fund distribution will be refined using the new RHNA to be adopted by ABAG next spring along with the SCS. The new RHNA being developed, which covers years 2015-2022, places a greater emphasis on city centered growth. As a result, refinements are likely to result in modest revisions to the funding distribution consistent with these revised development patterns. The proposed OneBayArea Grant formula also uses actual housing data from 1999-2006, and has been capped such that each jurisdiction receives credit for housing up to its RHNA allocation. Subsequent funding cycles would rely on housing production from ABAG’s next housing report to be published in 2013. 2. Priority Development Area (PDA) Minimum: Require that at least 70% of funding be spent on projects in Priority Development Areas (planned, potential and growth opportunity areas). Counties, at their discretion, can elect to use up to 5% of the PDA restricted funds for the development of priority conservation area (PCA) plans. Growth opportunity areas are tentatively considered as PDAs until ABAG completes final PDA designations next fall. See Attachment C for PDA program minimums for each county and Attachment D for a map and a list of the PDAs. MTC Planning Committee/ABAG Administrative Committee: OneBayArea Grant (cont.) July 8, 2011 Page 4 An ywhere 30% PDA Restricted 70 % Proposed Funding Minimum to be Spent in PDAs $63M $148M The OneBayArea Grant supports Priority Development Areas while providing flexibility to fund transportation needs in other areas. Performance and Accountability As noted at the outset, housing allocation according to RHNA and housing production will be the primary metric for distributing the OneBayArea Grant funding. In addition, staff recommends the following performance and accountability requirements. 1. Supportive Local Transportation and Land-Use Policies: Staff recommends that local agencies be required to have at least two of the following four policies adopted in order to be eligible for grant funds: a) Parking/pricing policies (e.g. cash out, peak pricing, on-street/off street pricing differentials, eliminate parking minimums, unbundled parking) and adopted city and/or countywide employer trip reduction ordinances b) Adopted Community Risk Reduction Plans (CRRP) per CEQA guidelines c) Have affordable housing policies in place or policies that ensure that new development projects do not displace low income housing d) Adopted bicycle/pedestrian plan and complete streets policy in general plans pursuant to Complete Streets Act of 2008 2. Approved Housing Element: Also, a HCD-approved housing element consistent with RHNA/SB375 law is a proposed condition for any jurisdiction receiving Cycle 2 OneBayArea grants. This may be met as follows: 1) adoption of a housing element that meets the current RHNA before the new RHNA is adopted, or 2) the adoption of a housing element that meets the new RHNA after its approval early in 2012. Jurisdictions have 18 months after the adoption of the SCS to meet the new RHNA; therefore, compliance is expected and required by September2014. Any jurisdiction failing to meet either one of these deadlines will not be allowed to receive grant funding. Lastly any MTC Planning Committee/ABAG Administrative Committee: OneBayArea Grant (cont.) July 8, 2011 Page 5 jurisdiction without adopted housing elements addressing the new RHNA by September 2014 will be ineligible to receive any funding after Cycle 2 until they have adopted a housing element. Implementation Issues Below are issues to be addressed as we further develop the OneBayArea Grant concept: 1. Federal Authorization Uncertainty: We will need to closely monitor development of the new federal surface transportation authorization. New federal programs, their eligibility rules, and how money is distributed could potentially impact the implementation of the OneBayArea Grant Program as proposed. 2. Revenue Estimates: Staff assumes a steady but modest nominal revenue growth rate of 4% annually. Given the mood of Congress to downsize federal programs, these estimates are potentially overly optimistic if there are significant reductions in STP / CMAQ apportionments over the Cycle 2 time period. Staff recommends continuing to move forward with the conservative revenue assumptions and make adjustments later if needed. Attachments MTC MTC MTC 1 Regional Planning *23 26 5 21 26 2 Regional Operations 84 0 74 0 74 0 74 3 Freeway Performance Initiative (FPI)51 0 66 0 66 0 66 4 Transit Capital Rehabilitation *0 0 125 0 125 0 125 5 Local Streets and Roads Rehabilitation*694 770 374 77 6 Climate Initiatives *80 40 25 12 37 7 Regional Bicycle Program *020 020 020 20 8 Transportation for Livable Communities (TLC) *51 28 64 32 9 Transportation Oriented Development (TOD) Fund 10000 10 Priority Conservation Area Planning Pilot 5 11 MTC Res 3814 Transit Payback Commitment 6 0 25 0 25 0 25 324 142 426 122 343 211 554 70% 30% 78% 22% 62% 38% 142 30% 122 22% 211 38% * TLC program eliminated - All TLC funds to OneBayArea grant $5M for SFGo in Regional. Eastern Solano CMAQ to Solano TA part of OneBayArea Grant. 7) Regional Bicycle Program: $20M as CMAQ rather than TE as originally proposed in Framework 8) Transportation for Livable Communities (TLC) 100% Transit Rehab assigned as Regional Transit Rehabilitation, as Transit is network based and regional 5) Local Streets and Roads Rehabilitation $3M for a scaled back PTAP program 6) Climate Initiative: Air District funding of $6 million adds capacity to suppport OneBay Area Grant. 1) Regional Planning: $21M ($7M per year) for CMA Planning to be distributed to CMAs through OneBayArea Grant. 4) Transit Capital Rehabilitation: J:\PROJECT\Funding\T4 - New Act\T4 - STP-CMAQ\T4 Cycle Programming\T4 Second Cycle\Cycle 2 Policy Dev\One Bay Area Grant\[Cycle2 Develop tables.xls]Program Funding 7-8-11 Cycle 1 Block Grant Cycle 2 Status Quo 85 105 Cycle 2 One Bay Area Total Grant Totals: 15 Cycle 2 One Bay Area Cycle 2 Total One Bay Area Grant* CMA Block Grant CMA Grant Cycle 1 Cycle 2 Status QuoFunding Available: Cycle 1: $466M (after $54M Carryover) Cycle 2: $548M Air District: $6M New Act STP / CMAQ Cycle 2 Draft Funding Proposal July 8, 2011 (amounts in millions $) Existing Framework Attachment A-1 OneBayArea Grant Proposal Attachment A-2: Regional Programs Regional Planning to support planning activities in the region carried out by the Association of Bay Area Governments (ABAG), the San Francisco Bay Area Conservation and Development commission (BCDC), and MTC. CMAs would access their OneBayArea grant to fund planning activities. Regional Operations: This program includes Clipper, 511, Incident Management and a scaled- back Pavement Technical Assistance Program (PTAP). Freeway Performance Initiative This program emphasizes the delivery of ramp metering projects on the State Highway System throughout the Bay Area to gain the most efficiency out of the existing highway network. Priority Conservation Area Planning: Staff is recommending a new pilot for the development of priority conservation area (PCA) plans for counties with populations under 500,000 to ameliorate outward development expansion and maintain their rural character. Transportation for the Livable Communities (TLC) and the Affordable Transportation Oriented Development (TOD) Housing Fund: The bulk of the TLC Program’s funding will shift to the OneBayArea Grant. The remaining funds under MTC’s management are proposed to continue station area planning and/or CEQA assistance to PDAs and support additional investments in affordable housing. Climate Initiatives: The objective of the Climate Initiatives Program launched in Cycle 1 was to make short-term investments that reduce transportation-related emissions and vehicle miles traveled, and encourage the use of cleaner fuels. Through the innovative projects selected and evaluation process, the region is building its knowledge base for the most effective Bay Area strategies for the Sustainable Communities Strategy and next long-range plan. The proposed funding for the Cycle 2 Climate Initiative Program would allow some continuation of these efforts at the regional level and protect a prior commitment to the SFGo project. Transit Capital Rehabilitation: The Commission deferred transit rehabilitation needs from Cycle 1 to Cycle 2 in order to allow more immediate delivery of some of the other programs. The program objective, as in the past, is to assist transit operators to fund major fleet replacements, fixed guideway rehabilitation and other high-scoring capital needs that cannot be accommodated within the FTA Transit Capital Priorities program. MTC Resolution 3814 Transit Payback Commitment: Consistent with the Cycle 2 framework, MTC is proposing to program $25 million to Lifeline, small operators, and SamTrans right-of- way settlement to partially address a commitment originally envisioned to be met with state spillover funds. County 50%-25%-25%(Pop.- RHNA - Housing Production Capped) Status Quo Grant Program Alameda $42.4 $25.4 Contra Costa $31.5 $16.6 Marin $6.4 $5.0 Napa $4.2 $2.9 San Francisco $24.6 $11.8 San Mateo $17.2 $11.1 Santa Clara $55.3 $28.1 Solano $13.8 $9.0 Sonoma $15.8 $12.3 Bay Area Total $211.0 $122.1 Difference From Status Quo Grant Program County 50%-25%-25%(Pop.- RHNA - Housing Production Capped) Status Quo Grant Program Alameda $17.1 - Contra Costa $14.9 - Marin $1.4 - Napa $1.3 - San Francisco $12.8 - San Mateo $6.1 - Santa Clara $27.2 - Solano $4.8 - Sonoma $3.5 - Bay Area Total $88.9 - % Change From Status Quo Grant Program County 50%-25%-25%(Pop.- RHNA - Housing Production Capped) Status Quo Grant Program Alameda 67% - Contra Costa 89% - Marin 27% - Napa 43% - San Francisco 109% - San Mateo 55% - Santa Clara 97% - Solano 53% - Sonoma 29% - Bay Area Total 73% - Notes: Attachment B PROPOSAL Housing production 1999-2006 is capped at 1999-2006 RHNA thresholds RHNA is based on current 2007-20014 targets Cycle 2 (FYs 2013, 2014, 2015) OneBayArea Grant Distribution Formula Status quo program based on framework for Cycle 2 adopted by the Commission and continuation of Cycle 1 county block grant policies. Population data from Department of Finance, US Census 2010 J:\PROJECT\Funding\T4 - New Act\T4 - STP-CMAQ\T4 Cycle Programming\T4 Second Cycle\Cycle 2 Policy Dev\Block Grant\[Distribution Options.xls]Distrib Overview Attachment C Apportionment Area County Grant Amount PDA 70% Minimum Anywhere in County Alameda $42.4 $29.7 $12.7 Contra Costa $31.5 $22.0 $9.4 Marin $6.4 $4.5 $1.9 Napa $4.2 $2.9 $1.2 San Francisco $24.6 $17.2 $7.4 San Mateo $17.2 $12.0 $5.1 Santa Clara $55.3 $38.7 $16.6 Solano $13.8 $9.6 $4.1 Sonoma $15.8 $11.0 $4.7 Regional Total $211.0 $147.7 $63.3 Allocation Areas PROPOSAL PDA Investments for the OneBayArea Grant 50%-25%-25% (Pop.- RHNA - Actual Housing Production Capped) Distribution Daly City San Leandro San Jose San Francisco Oakland San Rafael Mountain View Sunnyvale South San Francisco Santa Rosa Santa Clara San Mateo Richmond Redwood City Pleasanton Pittsburg Petaluma Palo Alto Milpitas Hayward Fremont Fairfield Cupertino Concord Berkeley Antioch Alameda Napa Walnut Creek Vallejo Vacaville Union City Santa Clara Alameda San Mateo Contra Costa Marin Sonoma Napa Solano Priority Development Areas Attachment D Source: MTC, June 2011, ABAG 2011 Cartography: MTC GIS/June 2011 Path: C:\WorkSpace\Craig\PDAs.mxd Scale: ½1023in.in. 1 inch = 10 miles Priority Development Areas Planned Planned/Potential Potential Growth Opportunity Areas Current Alameda County Jursidiction or Area Name PDA Status Alameda Naval Air Station Planned/Potential Northern Waterfront Growth Opportunity Area Albany San Pablo Avenue & Solano Avenue Growth Opportunity Area Berkeley Adeline Street Potential Downtown Planned San Pablo Avenue Planned South Shattuck Planned Telegraph Avenue Potential University Avenue Planned Dublin Downtown Specific Plan Area Planned Town Center Planned Transit Center Planned Emeryville Mixed-Use Core Planned Fremont Centerville Planned City Center Planned Irvington District Planned Ardenwood Business Park Growth Opportunity Area Fremont Boulevard & Warm Springs Boulevard Corridor Growth Opportunity Area Fremont Boulevard Decoto Road Crossing Growth Opportunity Area South Fremont/Warm Springs Growth Opportunity Area Hayward Downtown Planned South Hayward BART Planned South Hayward BART Planned The Cannery Planned Carlos Bee Quarry Growth Opportunity Area Mission Corridor Growth Opportunity Area Livermore Downtown Planned Vasco Road Station Planning Area Potential Newark Dumbarton Transit Oriented Development Potential Old Town MIxed Use Area Potential Cedar Boulevard Transit Growth Opportunity Area Civic Center Re-Use Transit Growth Opportunity Area Attachment D: Priority Development Areas Oakland Coliseum BART Station Area Planned Downtown & Jack London Square Planned Eastmont Town Center Planned Fruitvale & Dimond Areas Planned MacArthur Transit Village Planned Transit Oriented Development Corridors Potential West Oakland Planned Pleasanton Hacienda Potential San Leandro Bay Fair BART Transit Village Potential Downtown Transit Oriented Development Planned East 14th Street Planned Union City Intermodal Station District Planned Mission Boulevard Growth Opportunity Area Old Alvarado Growth Opportunity Area Alameda County Unincorporated Castro Valley BART Growth Opportunity Area East 14th Street and Mission Boulevard Mixed Use Corridor Growth Opportunity Area Contra Costa County Jursidiction or Area Name PDA Status Antioch Hillcrest eBART Station Planned Rivertown Waterfront Potential Concord Community Reuse Area Potential Community Reuse Area Potential Downtown BART Station Planning Growth Opportunity Area North Concord BART Adjacent Growth Opportunity Area West Downtown Planning Area Growth Opportunity Area El Cerrito San Pablo Avenue Corridor Planned Hercules Central Hercules Planned Waterfront District Planned Lafayette Downtown Planned Martinez Downtown Planned Moraga Moraga Center Potential Oakley Downtown Potential Employment Area Potential Potential Planning Area Potential Orinda Downtown Potential Pinole Appian Way Corridor Potential Old Town Potential Pittsburg Downtown Planned Pittsburg/Bay Point BART Station Planned Railroad Avenue eBART Station Planned Pleasant Hill Buskirk Avenue Corridor Potential Diablo Valley College Potential Richmond Central Richmond Planned South Richmond Planned 23rd Street Growth Opportunity Area San Pablo Avenue Corridor Growth Opportunity Area San Ramon City Center Planned North Camino Ramon Potential Walnut Creek Walnut Creek: West Downtown Planned Contra Costa County Unincorporated Contra Costa Centre Planned Downtown El Sobrante Potential North Richmond Potential Pittsburg/Bay Point BART Station Planned West Contra Costa Transportation Advisory Committee: San Pablo Avenue Corridor Planned/Potential Marin County Jursidiction or Area Name PDA Status San Rafael Civic Center/North Rafael Town Center Planned Downtown Planned Marin County Unincorporated Urbanized 101 Corridor Potential San Quentin Growth Opportunity Area Napa County Jursidiction or Area Name PDA Status American Canyon Highway 29 Corridor Potential San Francisco County Jursidiction or Area Name PDA Status San Francisco 19th Avenue Potential Balboa Park Planned Bayview/Hunters Point Shipyard/Candlestick Point Planned Downtown-Van Ness-Geary Planned Eastern Neighborhoods Planned Market & Octavia Planned Mission Bay Planned Mission-San Jose Corridor Planned Port of San Francisco Planned San Francisco/San Mateo Bi-County Area (with City of Brisbane) Planned Transbay Terminal Planned Treasure Island Planned Citywide Growth Opportunity Area San Mateo County Jursidiction or Area Name PDA Status Brisbane San Francisco/San Mateo Bi-County Area (with San Francisco) Potential Burlingame Burlingame El Camino Real Planned Daly City Bayshore Potential Mission Boulevard Potential Citywide East Palo Alto Ravenswood Potential Woodland/Willow Neighborhood Menlo Park El Camino Real Corridor and Downtown Planned Millbrae Transit Station Area Planned Redwood City Downtown Planned Broadway Growth Opportunity Area Middlefield Growth Opportunity Area Mixed Use Waterfront Growth Opportunity Area Veterans Corridor Growth Opportunity Area San Bruno Transit Corridors Planned San Carlos Railroad Corridor Planned San Mateo Downtown Planned El Camino Real Planned Rail Corridor Planned South San Francisco Downtown Planned Lindenville Transit Neighborhood Growth Opportunity Area CCAG of San Mateo County: El Camino Real Planned/Potential Santa Clara County Jursidiction or Area Name PDA Status Cambell Central Redevelopment Area Planned Winchester Boulevard Master Plan Growth Opportunity Area Gilroy Downtown Planned Los Altos El Camino Real Corridor Growth Opportunity Area Milpitas Transit Area Planned Hammond Transit Neighborhood Growth Opportunity Area McCandless Transit Neighborhood Growth Opportunity Area McCarthy Ranch Employment Center Growth Opportunity Area Midtown Mixed-Use Corridor Growth Opportunity Area Serra Center Mixed-Use Corridor Growth Opportunity Area Tasman Employment Center Growth Opportunity Area Town Center Mixed-Use Corridor Growth Opportunity Area Yosemite Employment Center Growth Opportunity Area Morgan Hill Morgan Hill: Downtown Planned Mountain View Whisman Station Potential Downtown Growth Opportunity Area East Whisman Growth Opportunity Area El Camino Real Corridor Growth Opportunity Area Moffett Field/NASA Ames Growth Opportunity Area North Bayshore Growth Opportunity Area San Antonio Center Growth Opportunity Area Palo Alto Palo Alto: California Avenue Planned Palo Alto: El Camino Real Corridor Growth Opportunity Area Palo Alto: University Avenue/Downtown Growth Opportunity Area San Jose Berryessa Station Planned Communications Hill Planned Cottle Transit Village Planned Downtown "Frame" Planned East Santa Clara/Alum Rock Corridor Planned Greater Downtown Planned North San Jose Planned West San Carlos and Southwest Expressway Corridors Planned Bascom TOD Corridor Growth Opportunity Area Bascom Urban Village Growth Opportunity Area Blossom Hill/Snell Urban Village Growth Opportunity Area Camden Urban Village Growth Opportunity Area Capitol Corridor Urban Villages Growth Opportunity Area Capitol/Tully/King Urban Villages Growth Opportunity Area Oakridge/Almaden Plaza Urban Village Growth Opportunity Area Saratoga TOD Corridor Growth Opportunity Area Stevens Creek TOD Corridor Growth Opportunity Area Westgate/El Paseo Urban Village Growth Opportunity Area Winchester Boulevard TOD Corridor Growth Opportunity Area Santa Clara Central Expressway Focus Area Growth Opportunity Area El Camino Real Focus Area Growth Opportunity Area Great America Parkway Focus Area Growth Opportunity Area Lawrence Station Focus Area Growth Opportunity Area Santa Clara Station Focus Area Growth Opportunity Area Tasman East Focus Area Growth Opportunity Area Sunnyvale Downtown & Caltrain Station Planned El Camino Real Corridor Planned Lawrence Station Transit Village Potential East Sunnyvale ITR Growth Opportunity Area Moffett Park Growth Opportunity Area Peery Park Growth Opportunity Area Reamwood Light Rail Station Growth Opportunity Area Tasman Station ITR Growth Opportunity Area VTA Cores, Corridors, and Station Areas (estimate) Potential Solano County Jursidiction or Area Name PDA Status Benicia Downtown Planned Northern Gateway Growth Opportunity Area Dixon Fairfield Downtown South (Jefferson Street) Planned Fairfield-Vacaville Train Station Potential North Texas Street Core Potential West Texas Street Gateway Planned Rio Vista Suisun City Downtown & Waterfront Planned Vacaville Allison Area Planned Downtown Planned Vallejo Waterfront & Downtown Planned Solano County Unincorporated Sonoma County Jursidiction or Area Name PDA Status Cloverdale Downtown/SMART Transit Area Planned Cotati Downtown and Cotati Depot Planned Healdsburg Petaluma Central, Turning Basin/Lower Reach Planned Rohnert Park Sonoma Mountain Village Potential Santa Rosa Downtown Station Area Planned Mendocino Avenue/Santa Rosa Avenue Corridor Potential Sebastopol Road Corridor Planned/Potential North Santa Rosa Station Growth Opportunity Area Sebastopol Nexus Area Potential Sonoma Windsor Redevelopment Area Planned Sonoma County Unincorporated 8th Street East Industrial Area Growth Opportunity Area Airport/Larkfield Urban Service Area Growth Opportunity Area Penngrove Urban Service Area Growth Opportunity Area The Springs Growth Opportunity Area Provided by ABAG 6/6/2011 TO: MTC Planning Committee / ABAG Administrative Committee DATE: 1/13/2012 FR: Deputy Executive Director, Policy, MTC Executive Director, ABAG RE: Update on Proposed OneBayArea Grant — Cycle 2 STP/CMAQ Funding Background The OneBayArea Grant (OBAG) represents a significant step toward integrating the region’s federal transportation program and its land-use and housing policies by: x Rewarding jurisdictions that accept housing allocations and produce housing with additional transportation dollars. x Supporting the Sustainable Communities Strategy (SCS) for the Bay Area by promoting transportation investments in priority development areas (PDAs) and by initiating a pilot program in the North Bay Counties that will support open space preservation in priority conservation areas (PCAs). x Increasing funding levels and eliminating program silos for greater local investment flexibility. Staff presented the OneBayArea Grant proposal to the MTC Planning Committee / ABAG Administrative Committee on July 8, 2011. At that meeting, the committee directed that staff release the proposal for public review. That initial proposal can be downloaded from the MTC website at http://www.mtc.ca.gov/funding/onebayarea/. Since then MTC has received numerous comment letters from stakeholders, transportation agencies and local jurisdictions. Staff has given presentations to the Bay Area Partnership working groups, Policy Advisory Council, ABAG Executive Board, ABAG Planning Committee, Regional Advisory Working Group, and the Regional Bicycle Working Group, as well as at various workshops in conjunction with the Plan Bay Area development. Stakeholder Response to OBAG Proposal Attachment A lists the comment letters received to date. The letters are available at the website referenced above with numbering consistent with the comment reference numbers in the attachment. Overall, the comments are supportive of several key elements of the program proposal, including greater program flexibility, increased funding subject to local priority-setting, and financial rewards for accepting Regional Housing Needs Allocation (RHNA) commitments. Comments Requesting Material Changes to Initial OBAG Proposal: 1. Priority Development Areas: There is support for lowering the proposed requirement that 70% of funding to each county be used to fund projects in PDAs, and providing more flexibility with respect to the use of these funds, particularly for counties with relatively few existing PDAs. In contrast, several stakeholder groups and the MTC Policy Advisory Council support retaining the 70% requirement. Because many noted that project benefits to PDAs are not just from those projects funded directly within the PDA limits, comment letters recommended allowing projects Planning Committee Memo – Update on Proposed OneBayArea Grant Page 2 of 4 that support or provide benefit to PDAs count towards the PDA requirements. There were requests to exempt certain OBAG program eligibility categories from the PDA requirements, such as streets and roads rehabilitation, regional bicycle, and Safe Routes to School. A reason cited was that transportation needs do not always align geographically with PDAs. 2. Priority Conservation Areas: Some comments call for expanding the eligible use of PCA funding beyond planning purposes in order to fund capital projects such as farm-to-market and open space access needs. Additional comments call for expanding the regional pilot program eligibility beyond the four North Bay counties. 3. Low Income Housing and Protections for Communities of Concern: Comments recommend modifying the OBAG funding formula to reward jurisdictions that zone for or produce low income housing units. In addition, some stakeholders also cited the need for policies that will prevent displacement of low-income residents, which was noted as a potentially unintended outcome of new housing and transportation investments in PDAs. 4. Performance and Accountability: In the areas of performance and accountability, many comments asked for more flexibility, such as reasonable progress toward, instead of final approval of, required policy actions, in the first round of OBAG funding. The reason cited was limited time and staff resources to enact new policies in the timeframe proposed. 5. Regional Program: We received requests to continue funding the Safe Routes to School Program (SR2S) as a regional program within the Climate Initiatives Program since the implementation of SR2S at the county level is uneven throughout the region. Recommended Program Revisions As a result of the input received and continued regional agency dialogue, staff recommends that the Committee consider significant revisions to the July 8, 2011 proposal, as outlined in the presentation slides (Attachment B) and explained more fully below. Staff proposes to increase the OneBayArea Grant from the initial $211 million funding level to $250 million. The increase comprises $39 million in federal funds, with $3 million directed specifically to preserve the “hold harmless” provision for Marin, Napa and Solano Counties, after accounting for Cycle 1 planning and SR2S funds. The funding distribution is also revised to reflect the formula changes discussed below to reward jurisdictions for very-low and low-income housing units. Attachment C provides the revised funding levels and distribution amounts. 1. Priority Development Areas x Increase PDA Flexibility: Staff recommends reducing the requirement that at least 70% of investments be directed to the PDAs to 50% for the four North Bay counties (Marin, Napa, Solano, and Sonoma) as there are relatively fewer PDA opportunities in these counties. Further, staff recommends that for all counties a project outside of a PDA count towards the PDA minimum if it directly connects to or provides proximate access to a PDA. However, staff does not recommend exempting certain programs or using different formulas to address any single program investment as this would run counter to the flexibility of the OneBayArea grant. x Strengthen Planning Integration: While an entire county is rewarded financially if its individual jurisdictions accept housing to meet RHNA targets, there is a need to ensure that RHNA, PDAs, and supporting zoning policies are effectively aligned. Therefore, staff recommends that all jurisdictions receiving OBAG funding be required to pass a non-binding Planning Committee Memo – Update on Proposed OneBayArea Grant Page 3 of 4 resolution of intent to align these three elements. Staff also recommends that CMAs prepare and adopt a PDA development strategy to guide transportation investments that are supportive of PDAs. Specific requirements will be developed as part of the next round of planning agreements between MTC and the CMAs. x Clarify Eligibility for Programs:Staff is proposing to clarify that both pedestrian and all bicycle facilities would be eligible for OBAG funding and CMA planning costs would partially count towards PDA targets (50% or 70%), in line with its PDA funding requirement. 2. Priority Conservation Areas (PCAs) x Focus on North Bay through Competitive Pilot Program: Staff recommends that the $5 million pilot program continue to be limited to the North Bay Counties and be conducted as a regional competitive program. However, eligibility would be expanded from planning to land / easement acquisition, farm-to-market capital projects, and open space access projects. x Leverage Additional Funding: A priority for these funds should be to partner with state agencies and private foundations to leverage outside funds for these projects, particularly for land acquisition and open space access. ABAG and MTC would pursue these leveraging opportunities. 3. Low-Income/Workforce Housing x Reward counties for low-income/workforce housing production:Staff recommends revising the funding formula to recognize the importance of planning for and producing very low and/or low-income housing by directing 25% in total, or 50% of the housing share, to very low and low-income housing production and RHNA share. 4. Performance and Accountability x Streamline Requirements: Staff recommends streamlining the performance and accountability requirements in recognition of the considerable lead time required to implement these requirements. Jurisdictions will need to be in compliance with the Complete Streets Act of 2008 by July 1, 2013 to be eligible for OBAG funds. Staff will work with jurisdictions to develop a strategy for meeting this timeline that considers individual jurisdiction’s general plan update schedules. MTC will also revise its Complete Streets Policy to ensure that public review and input for projects occurs early enough to better inform CMA project selection. x Retain Housing Element Requirement:Staff recommends no change to the proposal that a jurisdiction be required to have its general plan housing element adopted and approved by HCD for 2007-14 RHNA prior to July 1, 2013. Attachment D summarizes current compliance, with 72% of Bay Area jurisdictions already meeting this requirement. 5. Regional Programs: Within the Climate Initiatives program, the SR2S Program would be continued as a regional program with $10 million being distributed to the counties to be used only for that purpose. Staff proposes that the remaining $10 million be used for electric vehicle infrastructure and other climate strategies. Staff is also proposing a new regional $30 million pilot Transit Performance Initiative Program to implement transit supportive investments in major transit corridors. Finally, within the regional TLC Program, $15 million would be directed to PDA planning grants with a special focus on selected PDAs with greater potential for residential displacement, and to develop and implement community risk reduction plans. Attachment A: Comment Letters Received in Response to the OneBayArea Grant Proposal Released on July 8, 2011 Letter # Date Organization From 1 03/31/11 STA (Solano Transportation Authority) - re SB 375 Open Space & Ag Land Harry Price, Chair, STA; Mayor, City of Fairfield 2 06/21/11 City/County Association of Governments of San Mateo County (C/CAG) - Letter 1 Richard Napier, Executive Director 3 07/05/11 TAM (Transportation Authority of Marin) Dianne Steinhauser, Executive Director 4 08/05/11 Marshall_NCTPA TAC (Napa County Transportation & Planning Agency)Rick Marshall, Chair, NCTPA TAC 5 08/12/11 City/Council Association of Governments of San Mateo County (C/CAG) - Letter 2 Richard Napier, Executive Director 6 08/25/11 Cortese_Santa Clara County Board of Supervisors Dave Cortese, President, Board of Supervisors 7 08/31/11 Town of Los Gatos Greg Larson, Town Manager 8 08/31/11 City of Half Moon Bay Naomi Patridge, Mayor 9 08/31/11 City of Millbrae David F. Quigg, Mayor 10 09/01/11 City of Burlingame Terry Nagel, Mayor 11 09/01/11 Contra Costa County Catherine O. Kutsuris, Director, Conservation and Development Department and Julie Burren, Director, Public Works Department 12 09/02/11 City of Mountain View Michael A. Fuller, Public Works Director and Randal Tsuda, Community Development Director 13 09/09/11 City of Brisbane Randy L. Breault, PE, Director of Public Works/City Engineer 14 09/09/11 City of Milpitas Jose Esteves, Mayor 15 09/14/11 City of Fremont / LSRWG Norm Hughes, Chair, Local Streets & Roads Working Group; Assistant Public Works Director/City Engineer 16 09/15/11 SCTA (Sonoma County Transportation Authority/Regional Climate Protection Authority)Jake Mackenzie, Chair, SCTA/RCPA 17 09/15/11 City of Rohnert Park Darren Jenkins, PE, Director of Development Services/City Engineer 18 09/22/11 City of Sunnyvale Melinda Hamilton, Mayor 19 09/29/11 Contra Costa Transportation Authority (CCTA) David E. Durant, Chair, Board of Commissioners J:\COMMITTE\Planning Committee\2012\January12\One Bay Area Grant\OneBayArea Grant-Attach A.xls Page 1 of 3 Letter # Date Organization From 20 10/12/11 City of Lafayette Carl Anduri, Mayor 21 10/26/11 City of Morgan Hill Steve Tate, Mayor 22 10/26/11 County of Sonoma Efren Carrillo, Chairman, Sonoma County Board of Supervisors 23 10/28/11 Bay Area Business Coalition [Bay Area Council, Bay Planning Coalition, BIA Bay Area, Contra Costa Council, East Bay EDA, Jobs & Housing Coalition, North Bay Leadership Couyncil, Silicon Valley Leadership Group, SAMCEDA, Solano EDC} In order of organizations named in adjoining column: Jim Wunderman, President & CEO; John Coleman, Executive Director; Paul Campos, Senior VP, Govt. Affairs; Linda Best, President & CEO; Karen Engel, Executive Director; Gregory McConnell, President & CEO; Cynthia Murray, President & CEO; Carl Guardino, President & CEO; Rosanne Foust, President & CEO; Sandy Person, President 24 11/03/11 Greenbelt Alliance Stephanie Reyes, Policy Director 25 11/04/11 SFCTA (San Francisco County Transportation Authority) Ross Mirkarimi, Chair of the Board 26 11/15/11 City of Napa Jill Techel, Mayor 27 11/18/11 OBAG Comment Letter: Asian Pacific Environmental Network, Bay Localize, California WALKS, Causa Justa::Just Cause, Chinatown Community Development Center, Council of Community Housing Organizations (CCHO), East Bay Housing Organizations (EBHO), Genesis, Green Youth Alliance, Greenbelt Alliance, The League of Women Voters of the Bay Area, National CAPACD, Public Advocates, TransForm, Unitarian Universalist Legislative Ministry, Urban Habitat (no names provided) 28 11/22/11 Santa Clara VTA (Valley Transportation Authority) John Ristow, VTA Chief CMA Officer 29 11/28/11 City of Palo Alto Sidney Espinosa, Mayor 30 11/28/11 SRTSNP (Safe Routes to School National Partnership)_BABC (Bay Area Bicycle Coalition) Deb Hubsmith, Director, SRTSNP and Corrine Winter, Chair, BABC 31 12/02/11 City of Richmond William Lindsay, City Manager 32 12/06/11 County of Napa Bill Dodd, Chairman, Board of Supervisors 33 12/07/11 City of Santa Rosa Ernesto Oliveras, Mayor 34 12/09/11 City of American Canyon Richard Ramirez, Acting City Manager 35 12/12/11 Housing Leadership Council of San Mateo County Mark Moulton, Executive Director 36 12/19/11 Alameda County Transportation Commission Art Dao, Executive Director 37 12/19/11 City of Petaluma David Glass, Mayor J:\COMMITTE\Planning Committee\2012\January12\One Bay Area Grant\OneBayArea Grant-Attach A.xls Page 2 of 3 Letter # Date Organization From 38 12/21/11 San Mateo County Health System SaraT L. Mayer, Director 39 12/23/11 City of Oakland City and County of San Francisco City of San Jose Bay Area Rapid Transit District San Francisco Municipal Transportation Agency Alameda-Contra Costa Transit District San Francisco County Transportation Authority Fred Blackwell, Assistant City Administrator Jose Campos, Chief of Citywide Planning Laurel Prevetti, Assistant Planning Director Carter Mau, Executive Manager of Budget and Planning Timothy Papandreou, Deputy Director for Sustainable Streets Tina Spencer, Director of Service Development and Planning Tilly Chang, Deputy Director for Planning J:\COMMITTE\Planning Committee\2012\January12\One Bay Area Grant\OneBayArea Grant-Attach A.xls Page 3 of 3 OneBayArea GrantJoint MTC Planning/ABAG Administrative CommitteeJanuary 2012 2OverviewƒPriority Development AreasƒPriority Conservation AreasƒPerformance and AccountabilityƒNorthern County– Hold HarmlessƒRevised Funding FrameworkƒFunding AugmentationƒRegional Program DetailƒOBAG Flexibility 3Proposed Revisions: Priority Development AreasƒOverall Requirement: ƒReduce 70% requirement to 50% for the North Bay CountiesƒRequire PDA growth strategy to be adopted by CMAs (add to CMA planning agreements)ƒLink RHNA, PDAs, and zoning policies. Jurisdictions must pass a resolution of intent to align these three elementsƒEligible Projects:ƒAllow a project to count toward the PDA target if it connects to or provides proximate access to a PDAƒClarify expanded eligibility for pedestrian and bicycle facilities, not just limited to the regional bike networkƒPlanning Funds: ƒAllow 70% or 50% of planning costs to count toward PDA targets to align with OBAG PDA investments 4Proposed Revisions: Priority Conservation AreasƒNorth Bay Pilot Program: ƒLimited to 4 North Bay counties ƒProject Eligibility for MTC/ABAG Selection:ƒPlanningƒLand / easement acquisition ƒFarm to market capital projectsƒOpen space accessƒSecure matching funds from state agencies/private foundationsƒRemaining Counties:ƒExpand eligibility for “anywhere funds” to include project types above 5Proposed Revisions: Performance and Accountability1.Supportive Transportation and Land Use PoliciesƒMove from a menu approach (2 of 4) to 1 requirement.ƒComplete Streets Compliance: ƒFor Cycle 2, amendment to the circulation element of the General Plan to comply with the California Complete Streets Act of 2008 by July 1, 2013.ƒComplete Streets checklist to be revised to allow public review and input prior to county project selection.2.Retain Housing Element Requirement: ƒRequire HCD approval of revised housing element to meet current 2007-14 RHNA prior to July 1, 2013. 6Proposed Revisions: Low-Income/Workforce HousingƒRevised Funding Formula: ƒAdd weighting to formula to recognize very low and low income categories.ƒDirect 25% overall, or 50% of housing share, on very low and low income categories50% population / 12.5% RHNA / 12.5% Housing Production Capped / 12.5% Low- Income RHNA / 12.5% Low-Income Housing Production County% Change From July Proposal to Reflect Low Income HousingWeightingAlameda -3%Contra Costa -1%Marin 2%Napa-2%San Francisco 4%San Mateo -2%Santa Clara 2%Solano -7%Sonoma 5%Bay Area Total 7Proposed Revisions: County Funding LevelsƒHold Harmless: xAdd $3 million for address Marin, Napa, and Solano counties so that all counties see either growth or equivalent funding levels as compared to Cycle 2 status quo 8Proposed OBAG Funding AugmentationƒIncrease from $211 million to $250 million ƒAdd $18 million in federal STP/CMAQ funds to OBAGƒAdd $18 million in 2012 STIP TE funds (can be used for bicycle facilities and other enhancement projects)ƒAdd $3 million for “hold harmless” for Marin, Napa, and Solano 9Revised Funding Framework* Includes $6 million from Air DistrictRegional Regional Regional1 Regional Planning26 5 21 5 21 262 Regional Operations74 74 74 743 Freeway Performance Initiative (FPI)66 66 66 664 Transit Capital Rehabilitation125 125 125 1255 Local Streets and Roads Rehabilitation770 374 374776 Climate Initiatives40 25 12 20 12 327 Regional Bicycle Program20 20 20 208 Transportation for Livable Communities (TLC)64 32 15 85 25 85 1109 Priority Conservation Area Planning Pilot55510 MTC Res 3814 Transit Payback Commitment25 25 12 1211 Transit Sustainability Project30 3012 Augmentation39 39426 122 343 211 365 250 61578% 22% 62% 38% 59% 41%122 22% 211 38% 250 41%Original Cycle 2One Bay AreaRevised Cycle 2One Bay AreaGrant Totals:Cycle 1 Revised Block GrantTotalSTP/CMAQ ($591M)RTIP/TE ($18M)Air District ($6M)CMA Block GrantOneBay Area GrantOneBay Area GrantCycle 2OneBayAreaRevisedCycle 2TotalCycle 2Status QuoCycle 2OneBayAreaExisting Framework(as updated Jul 8, 2011)Original ProposalJul 8, 2011Revised Proposal *Jan 13, 2012New Act Cycle 2 Funding 10Regional Program Detail Regional Program Area AmountClimate Initiatives $20 millionSafe Routes to School $10 millionClimate Strategy $10 millionTransportation for Livable Communities $25 millionPDA Planning Grants $15 millionAffordable TOD Fund $10 millionTransit Performance Initiative (per TSP) $30 million 11Climate Initiatives ProgramƒSafe Routes to Schools ($10 million): ƒContinue Safe Routes to School program to supplement OBAG investments and focus on non-infrastructure programs that may or not be in PDAsƒClimate Strategy Reserve ($10 million):ƒConsider EV infrastructure and other promising projects; specific projects TBD.SR2S Fund Distribution by Total Student Enrollment*(millions $s)Alameda 21% $2.1Contra Costa 16% $1.6Marin 3% $0.3Napa 2% $0.2San Francisco 7% $0.7San Mateo 10% $0.9Santa Clara 27% $2.7Solano 6% $0.6Sonoma 7% $0.7Total 100% $10.0*Includes public and private K-12 12Transportation for Livable CommunitiesAffordable TOD Fund($10 million): ƒContinue to leverageinvestment in affordable TODƒInitial $10 million (cycle 1) public investment yielded $40 million private capitalPDA Planning($15 million)ƒFocus on PDAs with high potential for residential displacementƒAddress CEQA, entitlements, and community risk reduction planningƒWill fund roughly 40 plans 13Transit Performance Initiative ƒImplement pilot program focused on transit supportive investments in major transit corridorsƒInitial ~$30 million capital to improve operations and customer experienceƒImplement several “quick wins” within 12 to 24 months ƒProjects could include transit signal prioritization, passenger circulation improvements at major hubs, and boarding/stop improvementsƒApprove the first program of projects in April 2012 with the TSP adoptionƒRequire local jurisdictions to implement transit-supportive arterial management strategiesƒRescoped “Freeway Performance Initiative” includes funding for major arterials that can be used to support transit performance improvements 14OneBayArea Grant FlexibilityProgram and Project CategoriesPriority Development Areas“Anywhere”Planning ActivitiesXUp to 50% (North Counties)Up to 70% (Remaining Counties)XAugment Regional Safe Routes to SchoolXXStreets and Roads RehabilitationXXTransportation for Livable CommunitiesXXBicycle and Pedestrian ProjectsXXPriority Conservation AreasX 15County Funding at Augmented Levels CountyCycle 2Status QuoGrant ProgramJuly Initial ProposalRevised*50%-25%-25%(Pop-RHNA-Housing Production)$Difference(Revised - July)Alameda$25$42$48$6Contra Costa $17$31$36 $5Marin $5$6$9 $3Napa$3$4$6 $2San Francisco$12$25$30$5San Mateo $11$17$20 $2Santa Clara $28$55$66 $10Solano $9$14$16 $2Sonoma $12$16$19 $4Bay Area Total$122 $211 $250 $39* Proposal includes Low-Income and Very Low-Income weightingCycle 2 OBAG($ millions) 16($ millions)Total FundsPDA/"Anywhere" SplitWithin PDAs"Anywhere"FundsAlameda$48 70/30 $34 $14Contra Costa$36 70/30 $25 $11Marin$9 50/50 $4 $4Napa$6 50/50 $3 $3San Francisco$30 70/30 $21 $9San Mateo$20 70/30 $14 $6Santa Clara$66 70/30 $46 $20Solano$16 50/50 $8 $8Sonoma$19 50/50 $10 $10Regional Total$250 $165 $85County Funding Geographic Split 17Proposed OBAG Schedule ApprovalƒDecember 2011: Release scenario analysis resultsƒJanuary 2012ƒPublic outreach on scenario results ƒJoint Planning / ABAG Administrative Committee review of initial comments and staff recommendationsƒFebruary 2012ƒRelease Guidance for applying Project Performance Assessment to Investment StrategyƒMarch 2012ƒRelease Final Draft Cycle 2 One Bay Area Grant proposalƒRelease Preliminary Preferred Scenario for Plan Bay AreaƒPreliminary Investment Strategy for Plan Bay AreaƒMay 2012ƒCommission Approves Cycle 2 One Bay Area Grant programƒMTC / ABAG approves Preferred Scenario for Plan Bay Area Attachment C: Revised Funding Distribution CountyCycle 2Status QuoGrantProgramJuly Initial ProposalRevised*50%-25%-25%(Pop-RHNA-Housing Production)$Difference(Revised - July)Alameda$25$42$48$6Contra Costa$17$31$36$5Marin$5$6$9$3Napa$3$4$6$2San Francisco$12$25$30$5San Mateo$11$17$20$2Santa Clara$28$55$66$10Solano$9$14$16$2Sonoma $12$16$19 $4Bay Area Total$122 $211 $250 $39* Proposal includes Low-Income and Very Low-Income weightingCycle 2 OBAG($ millions) Attachment D # County HCD Report dtd 12/21/11 Alameda County 1 Alameda 2Albany 3 Berkeley X 4 Dublin X 5Emeryville X 6 Fremont X 7Hayward X 8Livermore X 9Newark X 10 Oakland X 11 Piedmont X 12 Pleasanton 13 San Leandro X 14 Union City X 15 Alameda County Unincorporated X Contra Costa County 16 Antioch X 17 Brentwood 18 Clayton X 19 Concord X 20 Danville X 21 El Cerrito IN REVIEW 22 Hercules 23 Lafayette X 24 Martinez X 25 MoragaX 26 Oakley X 27 Orinda 28 Pinole X 29 Pittsburg X 30 Pleasant Hill X 31 Richmond 32 San Pablo X 33 San Ramon X 34 Walnut Creek X 35 Contra Costa County Unincorporated X Marin County 36 Belvedere X 37 Corte Madera X 38 Fairfax 39 Larkspur X Bay Area Jurisdictions' General Plan Housing Element Compliance J:\COMMITTE\Planning Committee\2012\January12\One Bay Area Grant\OneBayArea Grant-Attach D.xls Page 1 of 3 # County HCD Report dtd 12/21/11 Bay Area Jurisdictions' General Plan Housing Element Compliance 40 Mill Valley 41 Novato 42 Ross X 43 San Anselmo 44 San Rafael X 45 Sausalito 46 Tiburon 47 Marin County Unincorporated Napa County 48 American Canyon X 49 CalistogaX 50 NapaX 51 St. Helena X 52 Yountville X 53 Napa County Unincorporated San Francisco County 54 San Francisco X San Mateo County 55 Atherton X 56 Belmont X 57 Brisbane X 58 Burlingame X 59 Colma 60 Daly City 61 East Palo Alto X 62 Foster City X 63 Half Moon Bay X 64 HillsboroughX 65 Menlo Park 66 Millbrae 67 Pacifica 68 Portola Valley X 69 Redwood City X 70 San Bruno X 71 San Carlos X 72 San Mateo X 73 South San Francisco X 74 Woodside X 75 San Mateo County Unincorporated IN REVIEW Santa Clara County 76 Campbell X 77 Cupertino X 78 Gilroy 79 Los Altos X J:\COMMITTE\Planning Committee\2012\January12\One Bay Area Grant\OneBayArea Grant-Attach D.xls Page 2 of 3 # County HCD Report dtd 12/21/11 Bay Area Jurisdictions' General Plan Housing Element Compliance 80 Los Altos Hills X 81 Los Gatos 82 Milpitas X 83 Monte Sereno X 84 Morgan Hill X 85 Mountain View IN REVIEW 86 Palo Alto 87 San Jose X 88 Santa Clara 89 SaratogaX 90 Sunnyvale X 91 Santa Clara County Unincorporated X Solano County 92 Benicia 93 Dixon X 94 Fairfield X 95 Rio Vista X 96 Suisun City X 97 Vacaville X 98 VallejoX 99 Solano County Unincorporated X Sonoma County 100 Cloverdale X 101 Cotati 102 Healdsburg X 103 Petaluma X 104 Rohnert Park X 105 Santa Rosa X 106 Sebastopol X 107 Sonoma 108 Windsor X 109 Sonoma County Unincorporated X 109 Bay Area Total 79 72% J:\COMMITTE\Planning Committee\2012\January12\One Bay Area Grant\OneBayArea Grant-Attach D.xls Page 3 of 3 County Administration Building 651 Pine Street, Room 106 Martinez, California 94553 John Gioia, 1st District Gayle B. Uilkema, 2nd District Mary N. Piepho, 3rd District Karen Mitchoff, 4th District Federal D. Glover, 5th District April 24, 2012 Mr. Steve Heminger Executive Director Metropolitan Transportation Commission 101 Eighth Street Oakland, CA 94607 RE: Update on Proposed OneBayArea Grant – Cycle 2 STP/CMAQ Funding Dear Mr. Heminger: Contra Costa County has had the opportunity to review the updated “OneBayArea” Grant – Cycle 2 STP/CMAQ Funding (OBAG) dated 1/13/2012. The County would like to offer the following comments based on the information provided. 1. Priority Development Area (PDA) Minimum. Generally, requiring 70% of STP funds to be spent in PDAs may not be the best use of funds. Local streets and roads shortfalls may not necessarily fall within a PDA, or at least to the magnitude of 70% of available STP funds. Greater needs for pavement rehabilitation may exist beyond PDAs. However the proposal indicates flexibility would be increased by allowing projects that directly connect to, or have “proximate access” to a PDA to count toward the 70% minimum. If this is going to be the qualifier for non-PDA projects, the County would recommend that “proximate access” be left to be defined by the CMAs. 2. Priority Conservation Areas (PCA): In our previous comments the County recommended expanding the proposed Priority Conservation Area (PCA) Planning Program to counties with populations 500,000 and over. While MTC staff did recommend expanding eligible projects beyond planning to land/easement acquisition, farm-to-market capital project, and open space access projects, non-North Bay counties are ineligible to compete. The proposed update provides no justification for not expanding the program to counties with populations of 500,000 and over. The County has two PCAs of concern, the 7,500 acre Agricultural Core and a 30,000 acre preserve system of the East Contra Costa Habitat Conservancy. The County has significant unfunded needs for 1) land/easement acquisition, 2) farm-to-market capital projects, and 3) open space access, yet we will be unable to compete for this program because of the limitations proposed. David Twa Clerk of the Board and County Administrator (925) 335-1900 Contra Costa County Mr. Heminger April 5, 2012 Page 2 of 2 3. The proposed program does not acknowledge and should take into account recent census data that has revealed an overall minimal increase, stabilization, or decline in the population of urban centers within the Bay Area over the last 10 years. In addition the age demographic in urban areas are changing. The 18 and over population is increasing while 17 and under is decreasing. For Contra Costa County this is evident in cities such as Hercules, Pinole, El Cerrito, Richmond and San Pablo1. Conversely, census data has shown significant increases in population and housing in suburban areas like Antioch, Brentwood and Oakley (Eastern Contra Costa County) where there are relatively fewer PDAs. The County agrees with the intent of the OBAG program, which is to strengthen the economic vitality of existing communities through investments in infrastructure and transit in these areas. However the proposed OBAG program may be trying to do too much too soon. In other words, the program contains a potential fundamental flaw by mandating a large portion of funding be spent within urban centers, or PDAs, when there is no reasonable indication that these areas will have a substantial need for the proposed level of infrastructure and program funding in the near future. During Cycle 1 the County did not have a funding need near 70% in PDAs, and may not for Cycle 2. Over time this may change, but this change will be gradual. Therefore it would be reasonable for MTC to consider a more gradual investment approach, and increasing that investment over time rather than all at once and up front. The fact remains that higher funding needs currently exist beyond the proposed program limits and PDAs. Again, the County appreciates the efforts by MTC to modify these fund programs to provide more flexibility and efficiency. The County looks forward to being involved in further discussions regarding the proposed framework for the OneBayArea Grant program. Sincerely, SUPERVISOR MARY N. PIEPHO – CHAIR DISTRICT III cc: C. Kutsuris, DCD Steven L. Goetz, DCD P. 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