Citizens Advisory Committee May 23, 2012

Transcription

1 Citizens Advisory Committee May 23, 2012 Citizens Advisory Committee Maria Lombardo Chief Deputy Director for Policy and Programming OneBayArea Grant Program Strategy, Schedule and Prioritization Criteria On May 17, 2012, the Metropolitan Transportation Commission (MTC) adopted the OneBayArea Program (OBAG) as the second part (Cycle 2) of its framework for programming funds anticipated under the yet-to-be developed federal surface transportation act. The policy impetus behind OBAG is an effort to better integrate the region s federal transportation program with California s climate law (Senate Bill 375, Steinberg, 2008) and the Sustainable Communities Strategy (SCS). This integration is being accomplished by using transportation dollars to reward jurisdictions that accept housing allocations through the Regional Housing Need Allocation (RHNA) process and that have historically produced housing, by supporting the SCS for the Bay Area by promoting transportation investments in Priority Development Areas (PDAs), and by providing a higher proportion of funding to local agencies and additional investment flexibility by eliminating required program targets. MTC used a formula that considered population, planned housing, and past housing production to distribute funds to CMAs. San Francisco s estimated share of OBAG funds is $38.8 million, with funds available primarily in Fiscal Years 2013/14 to 2015/16. MTC is supporting the SCS by requiring that 70% of the OBAG funds be spent in or support PDAs. CMAs may fund projects eligible under any of the following OBAG programs at whatever funding level best meets the county s needs: Transportation for Livable Communities, Local Streets and Roads Preservation, Regional Bicycle Program, and Safe Routes to School, as well as any pedestrian and bicycle improvements. OBAG also provides annual funds for CMA planning activities, previously provided by MTC to CMAs through a separate agreement. In May, we will brief the Citizens Advisory Committee (CAC) on our proposed schedule, strategy and screening/prioritization criteria for OBAG, returning in June for approval. We are seeking input and guidance from the CAC. This is an information item. On May 17, 2012, the Metropolitan Transportation Commission (MTC) adopted the OneBayArea Program (OBAG) as the second part (Cycle 2) of its framework for programming funds anticipated under the yet-to-be developed federal surface transportation act. The first funding cycle (Cycle 1) covered Fiscal Years 2009/ /12. Cycle 2 will cover Fiscal Year 2012/13 to Fiscal Year 2015/16. Cycle 1 included several grant programs managed by the respective county Congestion Management Agency (CMAs), such as the Authority in San Francisco. One of those programs was the CMA Block Grant program, which included three fund programs: county share Transportation for Livable Communities (TLC), the Regional Bicycle Program, and the Local Streets and Roads program with designated funding levels assigned by MTC. OBAG is an expansion of the CMA Block Grant program. It includes all of the programs mentioned above along with Safe Routes to School (SR2S) and a broadened eligibility for bicycle and pedestrian improvements that subsumed the Regional Bicycle Program. Further, OBAG does not establish funding targets for the various OBAG programs, but gives CMAs the flexibility to prioritize projects for the OBAG programs at any level to ensure that the investments meet local needs. Lastly, OBAG includes funds for CMA planning activities, which previously had primarily been distributed to CMAs by separate inter-agency agreements with MTC. These funds also received an additional increment from Cycle 1 of the CMA Block Grant program

2 which preceded OBAG. As we have noted during prior briefings on OBAG to the Citizens Advisory Committee (CAC), the primary driver behind this new flexible funding approach is an effort to better integrate the region s federal transportation program with California s climate law (Senate Bill 375, Steinberg, 2008) and the Sustainable Communities Strategy (SCS). This integration is being accomplished by using transportation dollars to reward jurisdictions that accept housing allocations through the Regional Housing Need Allocation (RHNA) process and that have historically produced housing, and by supporting the SCS for the Bay Area by promoting transportation investments in Priority Development Areas (PDAs). The OBAG program rewards jurisdictions that accept housing allocations through the RHNA process and that have historically produced housing by using a fund distribution formula that targeted those items. The distribution formula breakdown is shown below with distributions derived from each jurisdiction s proportionate share of the regional total for the factor: OBAG Fund Distribution Factors Factor Weighting Percentage Population 50.0% RHNA (total housing units) % RHNA (low/very low income housing units) 12.5% Housing Production 2 (total housing units) 12.5% Housing Production (low/very low income housing units) 12.5% 1 RHNA Housing Production Report San Francisco s share of OBAG funds is estimated at $38.8 million. MTC is supporting the SCS by requiring that 70% of the OBAG funds be spent in PDAs. A project lying outside the limits of a PDA may count towards the minimum provided that it directly connects to or provides proximate access to a PDA. CMAs make the determination for projects to count toward the PDA minimum that are not otherwise geographically located within a PDA. See Attachment 1 for a map of PDAs in San Francisco. As the CMA for San Francisco, the Authority will be issuing a call for projects for OBAG. The purpose of this memorandum is to present the proposed call for projects strategy, schedule, and screening/prioritization criteria for OBAG and to seek input and guidance from the CAC. For a jurisdiction to be eligible for OBAG funds it must work with the CMA to accomplish the following items: Address complete streets policies at the local level through the adoption of a complete streets policy resolution no later than January 31, Have its general plan housing element adopted and certified by the California Department of Housing and Community Development for RHNA prior to January 31, San Francisco has already satisfied both of these requirements. The CMA is also responsible for

3 creating a PDA Investment & Growth Strategy by May 1, MTC has stated that this includes an analysis of progress of local jurisdictions in implementing their housing element objectives and identifying current local housing policies that encourage affordable housing production and/or community stabilization. Starting in January 2014 and for subsequent updates, PDA Investment & Growth Strategies will assess performance in producing sufficient housing for all income levels through the RHNA process and, where appropriate, assist local jurisdictions in implementing local policy changes to facilitate achieving these goals. The Authority is committed to working with the Planning Department to complete this analysis by the assigned due dates, and we continue to seek clarification from MTC as to what is expected. Pursuant to direction provided by MTC and the Association of Bay Area Governments (ABAG) at their joint May 17 meeting, the Authority will work with other CMAs and MTC on the work plan for the growth and investment strategy and potentially some of the responsibility could shift back to MTC and ABAG for this work. The estimated $ million in Cycle 2 OBAG funds will include three different federal fund sources: Surface Transportation Program (STP), Congestion Mitigation and Air Quality Improvement (CMAQ) program, and Transportation Enhancements (TE) program funds. The latter are programmed by the California Transportation Commission (CTC) through the State Transportation Improvement Program. We are waiting for MTC to make the final breakdown of funds available to us. This is an important factor in programming projects as each federal fund source has slightly different eligibility, allocation, and local match requirements. Our current understanding of local match requirements is that STP and CMAQ require an 11.47% local match and TE funds require the same percentage, however TE match is expected to be provided by the State through the CTC. OBAG funds are available for programming between Fiscal Year 2012/13 and Fiscal Year 2015/16. However, in light of significant challenges in project delivery region-wide, MTC has asked that CMAs program projects between Fiscal Year 2013/14 and 2015/16 and MTC will front load regional, readyto-go projects in Fiscal Year 2012/13. Half of the OBAG funds, including all funds programmed for the preliminary engineering and design phases, must be obligated by March 31, All remaining OBAG funds must be obligated by March 31, The bullets below provide a high-level summary of the types of projects eligible for funding through each of the various OBAG programs: Transportation for Livable Communities (TLC): The TLC program is intended to fund projects that support multimodal travel, more livable neighborhoods and the development of jobs and housing in existing town centers. Examples of eligible projects funded in previous TLC funding cycles include the Folsom Streetscape and the Broadway Streetscape Improvements projects, and the 24 th Street BART Plaza Improvements. TLC projects often include, but are not limited to, corner bulb-outs, sidewalk extensions and widening, roadway restriping, mid-block crossings, new street trees, bicycle facilities, bicycle parking and public art. Local Streets & Roads Preservation: MTC has maintained this program for many, many years with very consistent guidelines. The focus of the program is pavement rehabilitation. For a project to be eligible it must be on the federal-aid system (e.g. an arterial or a collector) and extend the service life of the facility by more than 5 years. Safe Routes to School (SR2S): This program funds infrastructure projects like pedestrian facilities, traffic calming measures, installation of traffic control devices, construction of bicycle facilities, transit station enhancements, and transit access improvement for school age children. SR2S funds may also be used for certain non-infrastructure activities like public education and

4 outreach on transportation demand management activities and promotion of new and existing services. Bicycle and Pedestrian Improvements: In the previous funding cycles pedestrian and bicycle projects were limited to streetscape projects in designated PDAs, SR2S projects, and bicycle projects located on the regional bicycle network. OBAG gives greater flexibility by allowing all bicycle and pedestrian projects to be funded either as stand-alone projects or as part of a larger project. Eligible projects include Class I, II and III bicycle facilities, bicycle education, outreach, sharing and parking, sidewalks, ramps, pathways and pedestrian bridges, user safety and supporting facilities, and traffic signal actuation. Attachment 2 shows our proposed high-level breakdown of San Francisco s OBAG funding including the amount proposed for four years of CMA planning activities ($3.6 million) based on the Authority s adopted Fiscal Year 2012/13 budget and assuming 4% annual escalation as well a proposed minimum target of $2.5 million for SR2S projects. CMA planning activities include, but are not limited to, countybased planning efforts for development of the Regional Transportation Plan and the SCS, including the San Francisco Transportation Plan and other Authority planning efforts; development of PDA growth and investment strategies; establishing land use and travel forecasting process and procedures consistent with MTC and ABAG requirements; delivery support and oversight of San Francisco federal-aid projects; and undertaking calls for projects, programming and prioritization of OBAG, Lifeline Transportation Program and other state and federal fund sources. We are also taking advantage of OBAG s flexibility to create a minimum target of $2.5 million for the SR2S program within OBAG to augment the regional SR2S program. The latter will be developed through a separate call for projects, will have more of a focus on non-infrastructure projects, and will have funds available in Fiscal Year 2012/13, if projects are ready. The OBAG funded SR2S program will focus on infrastructure projects though we will maintain the flexibility to fund non-infrastructure projects if they cannot be accommodated within the regional SR2S program. The intent of establishing the SR2S fund target is to incentivize sponsors to address the growing pipeline of SR2S projects and needs that have been identified by the San Francisco Safe Routes to School Coalition and the San Francisco Municipal Transportation Agency. The target was set based on the historical average cost of SR2S infrastructure projects (average cost of ~$800,000) and an assumption of three projects over the four-year OBAG programming cycle. The Authority intends to do a two-part call for projects to enable us to work with sponsors to identify a set of OBAG projects for which we will have a high level of confidence that they will be able to meet the timely-use-of-funds deadlines associated with the federal OBAG funds. Part One The purpose of the first part of the call is to solicit candidate projects and develop a prioritized pool of OBAG projects for approval by the Authority Board in the fall. All eligible public agencies will be able to submit projects applications. Authority staff will review the applications based on the prioritization criteria described later in this memo. The Authority Board will then adopt an initial OBAG project list that over programs San Francisco s OBAG target by a yet-to-be-determined amount. Following establishment of this initial project list is a 5-month period during which project sponsors can further develop their projects. Work during this period must include all of the following activities: At least one community meeting to gather input on the specific project. Further community input will also be required throughout the OBAG funded design and construction phases on the project. Further conceptual and/or preliminary engineering that focuses on identifying possible issues

5 with federal environmental clearance (e.g. impact on historic properties, archaeological impacts, traffic and parking impacts, etc.), updated cost estimates that must be signed off at a conceptual level by all affected agencies, and coordination with other ongoing infrastructure projects. Multi-agency agreements, if relevant, on project management strategies and identification of a project lead and project team. At least one meeting with the Pedestrian Safety Advisory Committee and the Bicycle Advisory Committee. We will work with sponsors to identify and support Prop K allocations for the above project development work if other fund sources are not available for this purpose. We also anticipate that Prop K and Prop AA would provide much of the required local match for OBAG grants. Part Two All projects sponsors will submit updated applications with revised scope, schedule, and budget detail and Authority staff will reevaluate the project applications based on the prioritization criteria described below. This will allow for adjustments in cost and scope or may result in certain projects dropping out of consideration if they haven t advanced sufficiently to be able to meet timelyuse-of-fund deadlines. The Authority Board will adopt the final OBAG program for submittal to MTC. See Attachment 3 for a detailed schedule for the OBAG call for projects. This schedule reflects the programming strategy outlined above. We reviewed the two part call approach and the proposed schedule with the Authority s Technical Working Group and it was well received. Attachment 4 includes the draft screening and prioritization criteria that we will use to evaluate projects for OBAG funding. Only projects that satisfy all of the applicable screening criteria will be prioritized for potential OBAG funding. As noted in the attachment, MTC s OBAG guidelines, as well as the need to meet eligibility requirements of the various OBAG fund sources dictate most of the screening and prioritization criteria. We have flagged San Francisco-specific criteria in Attachment 4 using highlighted text. For instance, for SR2S projects we propose prioritizing projects that come from documented walking audits with school officials and community members. Given the challenge of meeting the timely use of funds requirements and the consequences of failing to meet the requirements (e.g. loss of funds to the project and San Francisco), project readiness will be given strong consideration. As is customary, we will work closely with project sponsors to clarify scope, schedule and budget; and modify programming recommendations as needed to help optimize the project s ability to meet timely use of funds requirements. We are seeking input and guidance from the CAC. This is an information item. Not applicable This is an information item. Not applicable This is an information item. Not applicable This is an information item.

6 Attachments: 1. Map of San Francisco Priority Development Areas 2. Draft OneBayArea Grant Fund Programming 3. Draft OneBayArea Call for Projects Schedule 4. Draft OneBayArea Screening and Prioritization Criteria

7 Marin County Attachment 1 San Francisco Bay IÆ!"c$ Alameda County Pacific Ocean?Ô San Francisco Future Priority Development Area Place Type Regional Center Transit Town Center Urban Neighborhood Transit Neighborhood Mixed-Use Corridor %&j( IÆ San Francisco Bay Priority Conservation Area Within Urban Footprint Within Urban Growth Limits Protected Open Space Source: Street Base Map 2006 TeleAtlas, Inc. All rights reserved. Protected areas data from California Protected Areas Database ( ABAG GIS/February 2012 Sc a le: Miles Kilometers %&j( San Mateo County IÆ Future Place Type for Priority Development Areas in San Francisco

8 Attachment 2 Draft OneBayArea Grant Fund Programming 1 (millions $) CMA Planning Activities $ Priority Development Area Projects (Minimum) 2 $ Safe Routes to School (Target) $ Non-Priority Development Area Projects (Target) $ TOTAL $ Amounts are estimates and subject to change based on adoption of a new federal surface transportation act and/or extensions of the current bill. 2 Per MTC guidelines a minimum of 70% of San Francisco's OBAG funds must be programmed to projects in Priority Development Areas (PDAs). Amounts in the table above credit the CMA Planning Activities funds towards the 70% PDA target as allowed by MTC. A project lying outside the limits of a PDA may count towards the minimum provided that it directly connects to or provides proximate access to a PDA. CMAs make the determination for projects to count toward the PDA minimum that are not otherwise geographically located within a PDA. 3 The Safe Routes to School/Transit target is not required by MTC, but rather proposed by Authority staff to encourage sponsors to submit these types of projects for OBAG funding. M:\CAC\Meetings\Memo to CAC\2012\05-May 2012\OBAG Attachments\DRAFT OBAG Fund Programming Breakdown Page 1 of 1

9 Attachment 3 Draft OneBayArea Call for Projects Schedule May 17, 2012 Authority Technical Working Group - INFORMATION OBAG guidelines and prioritization criteria May 23, 2012 June 12, 2012 June 15, 2012 June 21, 2012 June 27, 2012 July 10, 2012 July 24, 2012 August 17, 2012 September 2012 September 2012 September 2012 October 2012 October 2012 November 2012 Early March 2013 Citizens Advisory Committee Meeting INFORMATION OBAG guidelines and prioritization criteria Plans and Programs Committee Meeting INFORMATION OBAG guidelines and prioritization criteria Authority Releases Initial OBAG Call for Projects Authority Technical Working Group - Application Workshop Citizens Advisory Committee Meeting ACTION OBAG guidelines and prioritization criteria Plans and Programs Committee Meeting ACTION OBAG guidelines and prioritization criteria Authority Board Meeting ACTION OBAG guidelines and prioritization criteria Initial OBAG Applications Due to Authority Authority Releases Staff Recommendation on OBAG Projects Authority Technical Working Group Staff recommendation on OBAG projects and project development strategy Citizens Advisory Committee Meeting ACTION Staff recommendation on OBAG projects and project development strategy Plans and Programs Committee Meeting ACTION Staff recommendation on OBAG projects and project development strategy Authority Board Meeting ACTION Staff recommendation on OBAG projects and project development strategy Project sponsors further develop OBAG projects and seek public input M:\CAC\Meetings\Memo to CAC\2012\05-May 2012\OBAG Attachments\DRAFT OBAG Call for Projects Schedule.docx Page 1 of 2

10 Attachment 3 End of March 2013 April 2013 April 2013 April 2013 May 2013 May 2013 May 1, 2013 June 2013 Final OBAG Applications Due to Authority Authority Releases Final Staff Recommendation on OBAG Projects Authority Technical Working Group Final staff recommendation on OBAG project priorities Citizens Advisory Committee Meeting ACTION Final staff recommendation on OBAG project priorities Plans and Programs Committee Meeting ACTION Final staff recommendation on OBAG project priorities Authority Board Meeting ACTION Final staff recommendation on OBAG project priorities PDA Growth & Investment Strategy Completed OBAG Recommendations Due to MTC M:\CAC\Meetings\Memo to CAC\2012\05-May 2012\OBAG Attachments\DRAFT OBAG Call for Projects Schedule.docx Page 2 of 2

11 Attachment 4 Draft OneBayArea Grant Screening and Prioritization Criteria The Authority will prioritize projects based on screening criteria within each individual program and prioritization criteria for the OBAG program as a whole. MTC s OBAG guidelines largely dictate the screening and evaluation criteria that the Authority will use. In the sections below italicized text indicates new or modified screening and prioritization criteria proposed by Authority staff. OBAG SCREENING CRITERIA Projects must meet all screening criteria in order to be considered further for OBAG funding. The screening criteria will focus on meeting the eligibility requirements for OBAG funds and include, but are not limited to the following factors: Project is a fully funded, stand-alone capital project. Project must be eligible for funding from one or more of the fund programs incorporated into OBAG: Local Streets and Roads Preservation, Bicycle and Pedestrian Improvements, Transportation for Livable Communities, and Safe Routes to School (SR2S) 1. Project sponsor is an eligible public agency per MTC s OBAG guidelines. Project sponsor is requesting a minimum of $500,000 in OBAG funds 2. Project is consistent with the adopted Regional Transportation Plan and the San Francisco Countywide Transportation Plan. Project must have the required 11.47% local match in committed or programmed funds. The need for local match only applies to projects funded with federal Surface Transportation Program (STP) and Congestion Mitigation and Air Quality Improvement (CMAQ) funds. Our current understanding is that projects funded with Transportation Enhancements (TE) funds and not transferred to the Federal Transit Administration will not have to have to provide local match as it is already funded by the State. Local Streets and Roads Preservation Additional Screening Criteria: Project selection must be based on the analysis results from San Francisco s certified Pavement Management System. Pavement rehabilitation projects must have a PCI score of 70 or below. Preventative maintenance projects must extend the useful life of the facility by at least 5 years. Project is not a capacity expansion project, right-of-way purchase, channelization, routine maintenance, spot application, seismic retrofit, or structural repair on bridges. Project is not a non-pavement enhancement, such as streetscape projects and/or new traffic calming features. Non-pavement projects/activities that replace features currently existing on the roadway are eligible as follows: minor structures (e.g. headwalls, retaining walls, slide repair and slope protection), ADA compliance components, NPDES/Permits, traffic safety 1 This lists excludes Priority Conservation Areas as an eligible project type as they are not applicable to San Francisco as the intent is to ameliorate outward development and expansion and maintain rural character. 2 MTC s guidelines establish a minimum federal grant amount of $250,000 for counties with populations less than one million like San Francisco. In recognition of the delivery challenges posed by federal funds, we recommend a minimum federal grant request of $500,000, but will consider a lower amount on a case by case basis consistent with MTC guidelines. M:\CAC\Meetings\Memo to CAC\2012\05-May 2012\OBAG Attachments\DRAFT OBAG Screening and Prioritization Process.docx Page 1 of 4

12 Attachment 4 components (e.g. striping, signs, signals), bike paths (Class II/III only), and sidewalks. SR2S - Additional Screening Criteria: Projects must be coordinated with San Francisco SR2S Coalition (Coalition), i.e., either having been prioritized by the Coalition or having a letter of support from the Coalition. The goal is to coordinate capital improvements with education and outreach opportunities throughout the city. Project must have a signed letter of support from a school administrator (e.g. Principal, Vice-Principal)at the selected school. OBAG Prioritization Criteria: Projects that meet all of the OBAG screening criteria and the screening criteria for the individual program will be prioritized for OBAG funding based on, but not limited to the factors listed below. The Authority reserves the right to modify or add to the prioritization criteria in response to additional guidance and if necessary to prioritize a very competitive list of eligible projects that exceed available programming capacity and to enable matching of recommended projects with eligibility requirements of available fund sources.. Located within or provides proximate access to PDA: OBAG establishes a 70% minimum requirement that all funds be used on projects that are located within or provide proximate access to a PDA. Projects that are geographically outside of a PDA, but are determined to be eligible by the CMA because they provide proximate access to a PDA, must be mapped and given policy justifications for why and how they support a given PDA. Project Readiness: Projects that can clearly demonstrate an ability to meet timely use of funds requirements. Projects should have completed conceptual designs at a minimum and ideally completed survey work (e.g. at or near 30% design). This enables project benefits to be realized sooner and supports the regions strategy to obligate STP,CMAQ, and TE funds as early as possible. Within this criterion, the Authority will prioritize projects that can demonstrate state environmental clearance (CEQA) and a potential federal categorical exclusion (NEPA) and/or existing federal environmental clearance. Complete Streets/Multi-modal: Projects that directly benefit multiple system users (e.g. pedestrians, cyclists, transit passengers, motorists) will be prioritized. Community Support: Projects with clear and diverse (e.g. broad) community support will receive a higher priority. This can be shown through letters of support, specific reference and community meetings regarding the project. This includes a preference for projects that are included in adopted plans (e.g. area plans, traffic calming plans, neighborhood transportation plans). SR2S projects that come from documented walking audits with school officials and community members also will be prioritized. Multiple Project Coordination: Projects that are coordinated with non-obag funded, but related improvements, such as making pedestrian safety upgrades on a street or road that is scheduled to undergo repaving, will receive higher priority. Project sponsors must clearly identify related improvement projects, describe the scope, estimate cost, and provide a timeline for major milestones for coordination (e.g. start and end of design and construction phases). Safety: Projects that address high risk and high activity pedestrian corridors or locations (e.g. as identified in the WalkFirst effort) and/or high bicycle collision corridors or locations will be given higher priority. Project sponsors must clearly define the safety issue that is being addressed and how the project will improve M:\CAC\Meetings\Memo to CAC\2012\05-May 2012\OBAG Attachments\DRAFT OBAG Screening and Prioritization Process.docx Page 2 of 4

13 Attachment 4 or alleviate the issue. Located within High Impact Project Areas: Factors used to determine high impact project areas include: o Housing Area is expected to take on significant growth in the Sustainable Communities Strategy and Regional Housing Needs Allocation. o Jobs in proximity to housing and transit o Improved transportation choices for all income levels (reduces VMT, connectivity, transit access, etc.) o Consistency with regional TLC design guideline or design that encourages multimodal access o Project areas with parking management and pricing policies Located within a Community of Concern (COC): Projects located within a COC will be given higher priority. Located within Air District CARE Community: Projects located in areas with highest exposure to particulate matter and Toxic Air Contaminates, and employ best management practices to mitigate exposure, will receive a higher priority 3 Project Sponsor Priority: For project sponsors that submit multiple OBAG applications, we will consider the project sponsor s relative priority for its applications. Program Diversity: The variety of project types will be considered looking at the entire list of San Francisco projects. Geographic Equity: This factor will be considered looking at the entire list of San Francisco projects, as well as considering other current fund programming opportunities (e.g. Prop AA, Prop K). Eligibility for CMAQ Funds: If needed to match projects with the various fund sources assigned to the Authority through OBAG, after applying the above criteria the Authority may need to prioritize projects that are eligible for CMAQ funds, which is anticipated to be the largest OBAG fund source. For example, for bike and pedestrian projects, to comply with CMAQ eligibility requirements, facilities must not be exclusively recreational and they must reduce vehicle trips resulting in air pollution reductions. Similarly, for Safe Routes to School projects, walking audits and planning activities, crossing guards, vehicle speed feedback devices and traffic control that is primarily oriented to vehicular traffic rather than bicyclists and pedestrians are ineligible for CMAQ funds. Given the challenge of meeting the timely use of funds requirements and the consequences of failing to meet the requirements (e.g. loss of funds to the project and San Francisco), project readiness will be given strong consideration. As is customary, we will work closely with project sponsors clarify scope, schedule and budget; and modify programming recommendations as needed to help optimize the project s ability to meet timely use of funds requirements. If the amount of OBAG funds requested exceeds available funding we reserve the right to negotiate with project sponsors on items such as scope and budget changes that would allow us to 3 Information regarding Air District CARE Communities can be found online: ( M:\CAC\Meetings\Memo to CAC\2012\05-May 2012\OBAG Attachments\DRAFT OBAG Screening and Prioritization Process.docx Page 3 of 4

14 Attachment 4 develop a recommended OBAG project list that best satisfies all of the aforementioned prioritization criteria. M:\CAC\Meetings\Memo to CAC\2012\05-May 2012\OBAG Attachments\DRAFT OBAG Screening and Prioritization Process.docx Page 4 of 4