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California Transportation Commission SB 1 2026 Local Partnership Competitive Program Grant Application for the Village Parkway Reconstruction Project, CIP No. ST0323
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TO: Honorable Mayor and City Councilmembers
FROM: Colleen Tribby, City Manager
Prepared By: Sai Midididdi, Transportation and Operations Manager
EXECUTIVE SUMMARY:
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The City Council will consider authorizing the submittal of a grant application to the California Transportation Commission Senate Bill 1 2026 Local Partnership Competitive Program for $12.04 million in funds for the Village Parkway Reconstruction Project, CIP No. ST0323, and committing $20 million in local matching funds.
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STAFF RECOMMENDATION:
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recommendation text
Adopt the Resolution Authorizing the Submittal of an Application to the California Transportation Commission for Senate Bill 1 2026 Local Partnership Competitive Program Funds for the Village Parkway Reconstruction Project, CIP No. ST0323, and Committing $20 Million in Local Matching Funds.
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FINANCIAL IMPACT:
The approved 2026-2031 Capital Improvement Program (CIP) includes a total budget of $40 million for the Village Parkway Reconstruction Project, CIP No. ST0323, of which $8.8 million did not have a funding source identified. Based on an updated cost estimate, the total project cost has increased to $43.24 million, and the unfunded amount is now $12.04 million. The cost increase is in the construction phase and includes construction management, updated cost escalation, and contingency as shown in Table 1.
Table 1. Project Funding
|
Description |
Approved CIP Budget |
Updated Estimate |
Change |
|
Roadway construction (including construction management and contingency) |
$28.80M |
$32.04M |
+$3.24M |
|
Design, permitting, and DSRSD water main improvements |
$11.20M |
$11.20M |
$0 |
|
Total Project Cost |
$40.00M |
$43.24M |
+$3.24M |
|
Funded |
$31.20M |
$31.20M |
$0 |
|
Unfunded |
$8.80M |
$12.04M |
+$3.24M |
To offset the unfunded portion of the roadway construction phase, Staff is requesting $12.04 million through the Senate Bill 1 Local Partnership Competitive Program (Program). Staff also proposes to commit $20 million in existing funding from the General Fund Designated Reserve, State Gas Tax, Measure BB Local Streets Fund, State Transportation Improvement Program (STIP), Measure BB Grants, and Measure F Vehicle Registration Fee (VRF), as the local match. These funds are already programmed in the adopted CIP budget.
No additional appropriation is required at this time. If the Program grant is awarded, Staff will return to the City Council with any necessary budget amendments and agreements to receive and administer the funds.
The Dublin San Ramon Services District (DSRSD) water main replacement improvements will be constructed concurrently under a separate bid schedule. DSRSD will reimburse the City for these costs, and this work is not part of the grant request or the local match.
DESCRIPTION:
Project Description
The Village Parkway Reconstruction Project, CIP No. ST0323 (Project), will reconstruct Village Parkway between Amador Valley Boulevard and the northern city limit near Kimball Avenue. The project will improve safety, accessibility, multimodal connectivity, and the long-term condition of the corridor.
Current Project Status
The Project is currently in design development, and an updated environmental clearance is being prepared as required by Caltrans. The Project design and permitting are anticipated to be completed in spring 2027, with construction anticipated to begin in 2028.
The Local Partnership Competitive Program
The California Transportation Commission adopted the Senate Bill (SB) 1 2026 Local Partnership Competitive Program Guidelines on August 20, 2026, and issued a call for projects with nominations due November 18, 2026. The program provides transportation funding to agencies that have approved and dedicated local transportation revenue sources. The City is eligible for program funding based on its transportation impact fee programs, including the Eastern Dublin Transportation Impact Fee, Western Dublin Transportation Impact Fee, and the Dublin Crossing Transportation Fee.
The 2026 Local Partnership Competitive Program will distribute approximately $151.3 million statewide over Fiscal Years 2027-28 through 2028-29, with individual awards capped at $25 million per project. The City is requesting $12.04 million toward the Project’s construction phase. The following are the project scope items that can be funded through the program:
• Reconstructing the roadway using full-depth reclamation
• Replacing aging curb, gutter, sidewalks, and curb ramps
• Constructing Class IV separated bikeways
• Improving intersections and transit stops
• Upgrading traffic signals
• Installing pedestrian-scale lighting
• Constructing green stormwater infrastructure
• Installing fiber optics for traffic signal communications
• Planting approximately 375 street trees
Because the City’s qualifying transportation revenues exceed $2 million annually, the program requires a dollar-for-dollar local match. The City is proposing to commit $20 million in local funds toward the project, which exceeds the program’s minimum matching requirement and strengthens the competitiveness of the application.
Why City Council Action Is Required
• Committed funds. Program guidelines require all non-grant funding sources to be committed for a project to be considered for funding. City Council action will commit the required local matching funds for the project.
• Authorized signature. The application must include a letter signed by an officer authorized by the applicant’s governing board affirming that the fees are imposed by the City, are currently in effect, and are dedicated solely to transportation improvements.
• Housing commitment. Program guidelines include a housing-related evaluation criterion. While a State Prohousing Designation is not required to apply, the City will satisfy the criterion through alternative measures identified in the program guidelines, including Housing Element implementation and annual progress reporting.
Applications are due November 18, 2026, and the California Transportation Commission is expected to make funding awards in June 2027. If awarded, construction is anticipated to begin in 2028 and be completed by the end of 2029. Program guidelines require grant funds to be allocated before the construction contract is awarded. If the project is not selected for funding, Staff will return to the City Council with alternative funding and project delivery options.
STRATEGIC PLAN INITIATIVE:
Priority 5: City Infrastructure
Objective D: Advance the Village Parkway Reconstruction Project
NOTICING REQUIREMENTS/PUBLIC OUTREACH:
The City Council Agenda was posted.
ATTACHMENTS:
1) Resolution Authorizing the Submittal of an Application to the California Transportation Commission for Senate Bill 1 2026 Local Partnership Competitive Program Funds for the Village Parkway Reconstruction Project, CIP No. ST0323, and Committing $20 Million in Local Matching Funds
2) CIP No. ST0323 - Village Parkway Reconstruction Project