Memorandum. Date: RE: Plans and Programs Committee

Transcription

1 Memorandum Date: RE: Plans and Programs Committee February 10, 2009 To: From: Through: Subject: Summary Plans and Programs Committee: Commissioners Chu (Chair), Campos (Vice Chair), Chiu, Elsbernd, Maxwell and Dufty (Ex Officio) Anna LaForte Deputy Director for Policy & Programming Maria Lombardo Chief Deputy Director for Policy & Programming José Luis Moscovich Executive Director ACTION Recommend Approval of the Authority s Approach to the Federal Economic Stimulus Package The Obama Administration and the Congress are developing an $800 to $900 billion economic recovery package calling for significant levels of new spending as well as tax cuts. The bills focus spending on sectors deemed critical to rebuilding the nation s economy, including transportation and other infrastructure. On January 28, 2009, the House approved a Federal economic stimulus package referred to as The American Recovery and Reinvestment Act of This proposal includes over $40 billion for surface transportation projects nationwide. The package is still being amended in the House, and the Senate is still discussing its version of a stimulus package. As such, the final package will likely experience significant modification prior to final adoption, which is anticipated to occur around February 15, Based upon the current language in the House proposal, the Metropolitan Transportation Commission (MTC) estimates that the Bay Area s discretionary share of the regional Surface Transportation Program (STP) funds for road projects will be around $140 million and its share of transit funds will be roughly $420 million. MTC has proposed that a portion of these funds be programmed to rehabilitation projects by the congestion management agencies (CMAs) and transit operators respectively, and a portion be programmed at MTC s discretion to Bay Area enhancement and expansion projects. There are very tight delivery deadlines within the bill, and use it or lose it policies that would take funds away from San Francisco, the region and the state if the nominated projects do not meet funding and contract award deadlines. MTC has asked the Authority, as the CMA for San Francisco, to develop a prioritized list of up to $13 million in STP-eligible streets and roads projects, prioritizing local streets and roads rehabilitation consistent with the goals in the draft 2009 Regional Transportation Plan, but allowing bicycle, pedestrian, and safety projects if there are not enough road rehab projects to use up available funds. Transit operators are working directly with MTC to develop similar lists for eligible transit projects to receive stimulus funds that will be distributed through the existing transit formula process. At the Plans and Programs Committee meeting, we will provide the most recent information we have about the stimulus package and present the Authority s strategy for prioritizing local streets and roads projects, as well as our approach to other key transportation categories proposed as part of the stimulus package. Given the very tight timelines associated with the anticipated stimulus package, we have been in frequent contact with the Mayor s office, project sponsors, MTC and Caltrans in an effort to best position San Francisco projects for stimulus funds. We are seeking a recommendation to approve the Authority s approach to the Federal Economic Stimulus Package. BACKGROUND The Obama Administration and the Congress are developing an $800 to $900 billion economic recovery package calling for significant levels of new spending as well as tax cuts. The bills focus spending on sectors deemed critical to rebuilding the nation s economy, including transportation and other infrastructure, technology and science, schools and educational programs, clean energy, and healthcare. On Thursday January 15, 2009, the House Appropriations Committee released an Economic Stimulus (ES) proposal referred to as The American Recovery and Reinvestment Act of 2009, and approved an J:\2009\Memos\02 - February \Economic Stimulus approach - PPC.docPage 1 of 5

2 amended version of the bill on January 28. Transportation elements in the most recent draft of the House bill include about $30 billion for projects and activities under the Federal Highway Administration (FHWA), including work eligible under the Surface Transportation Program (STP), Congestion Mitigation and Air Quality Program (CMAQ), and bridge, highway, and metropolitan planning programs, as well as on Indian Reservation roads, park roads and parkways. The bill also contains $12 billion for projects under the Federal Transit Administration (FTA), including $9.5 billion for the transit formula programs and $2.5 billion for New Starts (Capital Investment Grants). On January 22, 2009, the Senate released its own version of the bill, which contained substantial differences from the House version. As of today, the House and Senate were still considering amendments; and therefore, the ES package may experience significant modification prior to final adoption. Until the Senate and House bills are reconciled, we will not know how much of the ES package will flow to San Francisco and the Bay Area, or how those funds will be distributed. The estimated date for passage of the bill is the week of February 15, If a portion of the ES funds are to flow through the existing STP and FTA formulas to the states and regions, as currently proposed, these funds will return to the Bay Area via formula for use on eligible transit and road projects. Based upon the language in the House proposal, the Metropolitan Transportation Commission (MTC) estimates that the Bay Area s discretionary share of the regional STP funds for road projects would be around $140 million and its share of transit funds will be roughly $420 million. Of the latter amount, the Municipal Transportation Agency (MTA) could receive as much as $105 million in transit formula funds, BART about $102 million and Caltrain about $16 million. Despite the uncertainty over how the ES funds will ultimately be distributed and the final funding levels, it is clear that consistent with the intent of an economic stimulus bill, the funds will be associated with very tight use-it-or-lose it deadlines. For instance, fund obligation and contract award deadlines will likely fall in a 75 day to 120 day timeframe following enactment of the bill. Given these extraordinarily tight obligation and award deadlines and the expected flood of stimulus projects, MTC and Caltrans have taken steps in advance of adoption of the ES package to ensure that sufficient projects are identified, prioritized, and ready to obligate the ES funds once they become available. These steps include issuing calls for projects for stimulus funds so that the region can immediately mobilize once the final ES package is approved. At the Plans and Programs Committee meeting, we will provide the most recent information we have about the stimulus package and present the Authority s strategy for selecting and prioritizing local streets and roads projects, as well as our approach to other key transportation categories proposed as part of the stimulus package. DISCUSSION Consistent with the draft Regional Transportation Plan (Transportation 2035) and its adopted guiding principles for a Federal economic stimulus package, MTC has advised Congestion Management Agencies (CMAs) that 60% to 80% of the Bay Area s estimated $140 million in STP stimulus funds will likely be available for the CMAs to program for Local Streets and Roads (LS&R) projects. The remaining 20% to 40% would be available to MTC to program to Bay Area enhancement and expansion projects at its discretion. MTC s allocation formula for the CMA portion of the LS&R stimulus funds is based 25% on population, 25% on lane mileage, 25% on arterial and collector funding shortfall, and 25% on performance (e.g. maintenance practices). Using this formula, San Francisco would receive about 9.3% of the CMA funds or roughly $7.8 to $10.4 million dollars. MTC has asked the Authority, as the CMA J:\2009\Memos\02 - February \Economic Stimulus approach - PPC.doc Page 2 of 5

3 for San Francisco, to develop a prioritized list of up to $13 million in STP-eligible local streets and roads maintenance and rehabilitation projects. Transit operators are working directly with MTC to develop similar prioritized lists for transit projects eligible to receive ES funds through the FTA transit formula process. LS&R Call for Projects: On January 21, 2009, we issued a call for projects to San Francisco project sponsors for the anticipated LS&R portion of the Federal ES package. Project information was due to the Authority on January 27. The Authority s final project list, with related documentation for each nominated project, is due to MTC on February 9, 2009 and will be considered by the MTC for approval at its February 25 commission meeting. Eligibility Requirements: There are very tight delivery deadlines within the House and Senate versions of the ES bill, and use it or lose it policies that would take funds away from San Francisco, the region, and the state if the nominated projects do not meet the funding and contract award deadlines. As noted above, the proposed deadlines keep changing while the bills are being amended, but we expect that the final version of the bill will establish obligation and/or contract award dates within a 75 to 120 day range. For the sake of being prepared for the most rigorous timeline so as not to risk losing any of the ES funds available to the region, MTC has advised us that LS&R stimulus projects must meet the following timely use of funds requirements: March 15, 2009 (30 days after enactment) Deadline to submit an obligation request to Caltrans deadline, including proof of federal environmental clearance. May 15, 2009 (90 days after enactment) Deadline to receive obligation approval. July 15, 2009 (150 days after enactment) Deadline to award contract. Other key eligibility requirements for the LS&R funds include: Projects must be on a federal-aid eligible local street or road. Sponsors must request a minimum of $500,000 in ES funds per project. Sponsors must comply with all relevant federal procedures, including but not limited to federal environmental clearance and contracting procedures. Projects must be included in the Regional Transportation Plan. Projects must be completed within 3 years. Proposed Prioritization and Project Selection Criteria: Given the above eligibility requirements for federal environmental clearance, the desire for shovel-ready projects, and extremely tight timely use of funds deadlines, the number of shovel-ready local streets and roads projects is not very large, though more than sufficient to use up all the funds expected to be available. Attachment 1 lists the 14 projects that we received by January 27, with a total of $35,562,467 in requested ES funds compared to San Francisco s $13 million target. Given the abbreviated timeline for the call for projects, we immediately began working with project sponsors, MTC and Caltrans to screen and prioritize the submitted LS&R projects using the criteria described below. J:\2009\Memos\02 - February \Economic Stimulus approach - PPC.doc Page 3 of 5

4 Project Readiness/Ability to Meet Timely Use of Funds Deadlines. This is of necessity the most important prioritization criterion, due to the use it or lose it policies that will likely be tied to ES funds and the extremely challenging timely use of funds deadlines. We reviewed the candidate projects to evaluate the likelihood of their meeting the delivery deadlines set by MTC. This analysis includes a variety of factors such as whether the project has already received federal environmental clearance, whether design is complete, projects that are least likely to encounter roadblocks to timely obligation and award, and projects of sponsors that have had successful on-time delivery of federalized projects in the recent past. Project Type. According to MTC s guidance, the LS&R funds should be prioritized for pavement rehabilitation and maintenance projects, particularly those with no digging which could trigger additional environmental review requirements. However, non-pavement streetscape projects such as bicycle, pedestrian, or safety projects may be considered if there are not enough candidate pavement projects. Given the expected volume of stimulus projects, the strict obligation deadlines, and the fact that Caltrans Local Assistance the staff that has to approve all of the environmental clearance and grant obligation paperwork for the region - is significantly under-staffed, MTC and Caltrans have agreed to prioritize street overlay and rehabilitation type projects because they can be cleared and approved relatively quickly. On the other hand, more complex projects, projects with many individual locations, and/or other factors that might involve a more time intensive process for environmentally clearing the project and obligating funds will be lower in priority. Other Modes and Geographic Equity. After considering project readiness and project type, we would also give consideration to projects that also benefit other modes (e.g. resurfacing projects on transit corridors, on the bike network) and to geographic equity. We held a Technical Working Group meeting on January 29 to review the submitted projects and have been in frequent contact with project sponsors since then to keep everyone up to date on the latest ES package information and associated MTC guidance. Attachment 2 shows our draft list of prioritized LS&R projects to submit to MTC. However, given that the exact funding levels, ES package requirements, and MTC s regional priorities have not been finalized, our staff recommendation is not to adopt the prioritized project list, but rather the approach (e.g. prioritization criteria). This will allow us to work with MTC and the project sponsors to quickly refine project lists so that San Francisco sponsors can immediately mobilize to obligate ES funds once they become available. Next Steps: The CMA s final LS&R project lists are due to the MTC on February 9 for approval by the MTC on February 25. The submission of San Francisco s LS&R prioritized project list is only the first step in the larger ES Package process. On the same timeline as the LS&R project prioritization process, transit operators are submitting to MTC lists of transit maintenance and rehabilitation projects. Similar to the local streets and roads funds, MTC has also proposed taking a portion of the transit formula funds to program at its discretion to key regional transit expansion and enhancement projects. MTC is expected to unveil its draft regional priorities for the ES package at a key agency stakeholder meeting to be held on February 6. The state (through Caltrans and the California Transportation Commission) in partnership with regions, counties, cities, and the advocacy community, is developing its own strategy for the estimated $2 billion that would be available according to the House bill language. It is expected that these funds would go to the State Highway Operations and Protection Program and/or to Prop 1B projects through the State Transportation Improvement Program (STIP). And finally, the ES package is likely to include funds to be distributed through competitive federal programs such as New and Small Starts, Public Lands Highways, and high speed rail. J:\2009\Memos\02 - February \Economic Stimulus approach - PPC.doc Page 4 of 5

5 We have been and will continue to be in frequent contact with the Mayor s office, project sponsors, MTC and Caltrans in an effort to best position San Francisco projects for stimulus funds, looking at filling funding shortfalls for high priority City and Prop K projects as well as discretionary programs for which San Francisco projects would compete well. At the Plans and Programs Committee meeting, we will provide an update on the Federal Economic Stimulus package, MTC s regional funding priorities, and our approach toward maximizing funds for San Francisco projects. We are seeking a recommendation to approve the Authority s approach to the Federal Economic Stimulus Package. ALTERNATIVES 1. Recommend approval of the Authority s approach to the Federal Economic Stimulus Package. 2. Recommend approval of the Authority s approach to the Federal Economic Stimulus Package, with modifications. 3. Defer action, pending additional information or further staff analysis. CAC POSITION The CAC was briefed on this item at its January 28, 2009 meeting as an information item. CAC comments were generally supportive of the proposed approach and acknowledged the need for placing a high priority on project readiness given very tight timely use of funds deadlines. FINANCIAL IMPACTS There would be no impact on the Authority s budget from the proposed action. RECOMMENDATION Recommend approval of the Authority s approach to the Federal Economic Stimulus Package. Attachments: 1. List of Projects Received in Response to Local Streets and Roads Economic Stimulus Funds Call for Projects 2. Draft List of Projects Prioritized for Local Streets and Roads Economic Stimulus Funds J:\2009\Memos\02 - February \Economic Stimulus approach - PPC.doc Page 5 of 5

6 Attachment 1 San Francisco County Transportation Authority List of Projects Received in Response to Local Streets and Roads Economic Stimulus Funds Call for Projects SF Sup. District Sponsor Project Title Project Description Total Project(s) Cost Economic Stimulus Funding Request Eligibility Screening Notes [PROJECTS - MUST MEET AWARD WITHIN 90 DAYS] 7 DPW Various DPW 2 and 5 DPW 7th Avenue & Laguna Honda Boulevard As Needed Curb Ramp and Sidewalk Bush Street Project limits: 7th Ave from Hugo St to Judah St, Kirkham St to Laguna Honda Blvd; Laguna Honda Blvd from 7th Ave to Dewey Blvd. Scope of work: paving, planning, base repairs, and curb ramps along 7 blocks. Curb ramp and sidewalk repairs at various locations. The scope of work includes construction and construction management to bring existing and non-existing curb ramp locations into ADA compliance. Project limits: Bush St from Van Ness Ave to Presidio Ave.; Euclid Ave. from Presidio Ave. to Laurel St. Scope of work: paving, planing, base repairs, and curb ramps along 13 blocks. $3,750,000 $3,750,000 $2,000,000 $2,000,000 $2,032,000 $2,032,000 Timely NEPA clearance issue (multiple locations) 5 DPW 1 DPW 6 and 3 DPW 6 DPW 10 DPW 3 Planning Dept. Divisadero Street Geary Blvd. Intersections Paving Jones Street Turk Street Williams Avenue Fisherman's Wharf Dynamic Parking Signage Program Project limits: Divisadero St from Castro St/Waller St to Geary Blvd. Scope of work: paving, planing, base repairs, and curb ramps along 20 blocks. Project limits: Geary Blvd intersections at 19th Ave, 20th Ave, 21st Ave, 22nd Ave, 23rd Ave. Scope of work: paving, planing, base repairs, and curb ramps Project limits: Jones St from Market St to California St. Scope of work: paving, planing, base repairs, and curb ramps along 11 blocks. Project limits: Turk St from Market St to Van Ness Ave. Scope of work: paving, planing, base repairs, and curb ramps along 17 blocks. Project limits: Williams Ave from 3rd St to Mendell St, Reddy St to Diana St, Neptune St to Phelps St. Scope of work: paving, planing, base repairs, and curb ramps along 6 blocks. A dynamic parking signage program that will provide real-time information of parking availability to motorists travelling to Fisherman's Wharf. The project is being coordinated with the local Community Benefit District and will leverage work already being done through the MTA's on-street pilot parking program, and is designed to alleviate traffic by directing vehicles to the nearest available parking structure (there are over a dozen in the area). The improved traffic conditions will allow for substantial improvements to pedestrian infrastructure in an area that receives over 13 million visitors a year. $3,125,000 $3,125,000 $625,000 $625,000 $2,000,000 $2,000,000 $1,500,000 $1,500,000 $937,500 $937,500 $500,000 $500,00 Readiness issue (design not expected to be complete until 10/2009, past the obligation deadline). J:\2009\Memos\02 - February \ES LS&R draft Project List - ATT 1-2.xls Page 1 of 3

7 Attachment 1 San Francisco County Transportation Authority List of Projects Received in Response to Local Streets and Roads Economic Stimulus Funds Call for Projects SF Sup. District Sponsor Project Title Project Description Total Project(s) Cost Economic Stimulus Funding Request Eligibility Screening Notes [PROJECTS - MUST MEET AWARD WITHIN 90 DAYS] 1 Rec & Park GGP - JFK Drive West Repaving Repaving JFK Drive in Golden Gate Park between Transverse Drive and the Great Highway $1,860,000 $1,292,967 Eligibility issue: Does not have approved Management Program. Possible timely NEPA clearance issue (location in park). All SFMTA-DPT Bicycle Lane Repaving Repair and upgrade pavement quality along 5 miles of bicycle lanes in coordination with DPW. $1,000,000 $1,000,000 Readiness issue (design phase not started yet; MTA has not yet contacted DPW to discuss locations, design, environmental clearance, other street work coordination) All SFMTA-DPT Bicycle Route Network Improvements Bicycle Route Network Improvements would complete the funding of San Francisco's bicycle route network for those elements with planned construction within the next 2 years. The funded work will fill gaps within the existing bicycle network - creating a comprehensive grid of bicycle lanes on city streets and paths. $12,400,000 $9,800,000 Readiness issue (CEQA clearance not expected until 6/2009). Timely NEPA clearance issue (multiple locations). All SFMTA-DPT Enhanced Traffic Signage Consistent with current Federal and California State mandates, DPT must upgrade approx 1,250 intersections still requiring the "All-Way" legend at 4-way stop intersections. This project would also replace STOP signs that do not meet the latest FHWA retro-reflectivity standards for regulatory signage. $500,000 $500,000 Timely NEPA clearance issue (multiple locations) All SFMTA-DPT Traffic Signal Rehabilitation of traffic signal controllers and cabinets, and installation of System Rehab & accessible pedestrian signals (APS) and pedestrian countdown signals for safety Safety improvement. Improvements $7,000,000 $7,000,000 Timely NEPA clearance issue (multiple locations). Potential contract award issue (includes force account work). Total Economic Stimulus Funding Requests $35,562,467 Current San Francisco Target $13,000,000 J:\2009\Memos\02 - February \ES LS&R draft Project List - ATT 1-2.xls Page 2 of 3

8 Attachment 2 San Francisco County Transportation Authority Draft List of Projects Prioritized for Local Streets and Roads Economic Stimulus Funds Sponsor Priority Sup. District Agency Sponsor Project Title Project Status Type of Project (e.g. pavement or non-pavement) Economic Stimulus Funding Request / Recommendation (100% of Project Cost) Bike/Ped Scope Elements 1 6 and 3 DPW 2 6 DPW 3 5 DPW 4 7 DPW 5 1 DPW 6 2 and 5 DPW Jones Street Turk Street Divisadero Street 7th Avenue & Laguna Honda Boulevard Geary Boulevard Intersections Paving Bush Street PS&E 98% complete pavement $2,000,000 Curb ramps. PS&E 98% complete pavement $1,500,000 Curb ramps. PS&E 98% complete pavement Joint streetscape improvement project, includes: bulb-outs, street $3,125,000 trees, pedestrian lighting, crosswalk enhancements, and curb ramps. Streetscape portion is federally funded. PS&E 60% complete pavement $3,749,856 Curb ramps, bike lanes. PS&E 98% complete pavement $625,000 Curb ramps PS&E 90% complete pavement $2,032,000 Curb ramps TOTAL $13,031,856 Authority Note: Depending on final LS&R Economic Stimulus amount, we would work with DPW to trim the list to fit available funding, while giving priority to projects with pedestrian and/or bicycle elements as well as geographic equity. J:\2009\Memos\02 - February \ES LS&R draft Project List - ATT 1-2.xls Page 3 of 3