To: HONORABLE MAYOR AND From: Sara L. Hensley

CITY COUNCIL

Subject: SEE BELOW Date: 9-10-03

Council District: 6

SNI Area: N/A

SUBJECT: GRANT APPLICATION TO THE CALIFORNIA DEPARTMENT OF PARKS AND RECREATION – OFFICE OF GRANTS AND LOCAL SERVICES’ RECREATIONAL TRAILS PROGRAM FOR FUNDING FOR THE ACQUISITION AND/OR DEVELOPMENT OF PROPERTY ASSOCIATED WITH THE WILLOW GLEN SPUR TRAIL PROJECT.

RECOMMENDATION

(1) Adopt a resolution authorizing the City Manager to submit a grant application in an amount not to exceed $200,000 to the California Department of Parks and Recreation – Office Of Grants And Local Services’ Recreational Trails Program for the acquisition and/or development of property associated with the Willow Glen Spur Trail Project. In order to receive any funds awarded, the City will be required to provide a match equal to 20%, of which 5% must come from a non-federal source.

(2) Authorize the City Manager to negotiate and execute all agreements and documents necessary for the receipt of any award made as a result of the aforementioned application, including relevant project completion reports and payment requests.

BACKGROUND

Following Union Pacific Railroad’s November 19, 2002 filing of a Petition for Exemption with Verification to abandon the rail line from M.P. 19.60 near Valbrick to M.P. 22.45 near Cahill, a distance of 2.85 miles, the City requested that the rail line be preserved for trail use. Union Pacific afforded the City a six-month window in which to develop the required financing for the acquisition of the property. The arrangement permitted extension of the identified period if sufficient good faith efforts were demonstrated within the initial six-month period.

Staff has worked diligently to identify sources of funding for this project. To date, staff has secured a large share of the funding and continues to seek sources to permit acquisition of all available parcels from Lonus Court to Highway 87.

ANALYSIS

The California Department of Parks and Recreation – Office of Grants and Local Services has announced that, pending federal reauthorization of the Recreational Trails Program, approximately $2.2 million will be available for non-motorized trails projects. Awards under this grant, which provides up to 80% of proposed project costs, will be made by the end of January 2004.

Relative to non-motorized trails, these funds can be used for the acquisition of easements and fee simple title to property for recreational trail corridors, construction of new trails, and/or development and rehabilitation of trailside and trailhead facilities and trail linkages for recreational trails. The timeline for completing projects under this grant is four years.

The availability of the Union Pacific Railroad’s abandoned line presents a unique opportunity for an urban project. Given the nature of the project, staff believes that a competitive request could be made for $200,000 for the Willow Glen Spur Trail Project. If the grant is approved, existing grant funds received from the Open Space Authority and the Water District awards (local funding sources) could serve as the required match for the Recreational Trails Grant.

The City and other stakeholder agencies, view the acquisition of the rail property as an important strategic opportunity as evidenced by the following actions:

o Council recommended that staff secure funding for the acquisition.

§ (06-24-03, item 4.3) - $1,000,000 from 20% Open Space Funding Program.

§ (05-27-03, item 2.16) - $300,000 grant request from Santa Clara Valley Water District.

§ (04-29-03, item 5.3) - $500,000 grant request from Land & Water Conservation Fund Program.

o (12-17-02, item 2.29) - Council approved the filing of a petition for Reconsideration of Proposed rail line abandonment and enter into exclusive negotiations for purchase of the line.

o The County of Santa Clara has made available $2,000,000 towards the project.

o The Santa Clara County Open Space Authority has made available $1,000,000 towards the project.

o The Santa Clara Valley Water District has awarded a $300,000 grant towards the project.

The Trail Program’s recently approved Prioritization Process (08-26-03, item 5.2) inventories all potential trail projects and ranks them against seven categories. The Willow Glen Spur projects ranks high in five of the categories:

o The project is a strategic opportunity to link the Los Gatos Creek and Guadalupe River trails.

o The project is also sufficiently developed in concept to accept funding for acquisition.

o The project is identified in SNI Top 10 lists.

o The project supports connectivity by its potential to link council districts.

PUBLIC OUTREACH

Development of a master plan for development of the Willow Glen Spur Trail will include a community outreach process.

COORDINATION

This memorandum has been coordinated with the City Attorney’s Office and City Manager’s Budget Office.

COST IMPLICATIONS

The grant program requires a 20% local match. If successful, the City will be required to provide $40,000 in match funding, 5% of which must come from a non-federal source. Sources of funds available for use as match include grants awarded through the Santa Clara Valley Water District ($300,000) and the Santa Clara County Open Space Authority ($1,000,000). These funds will be appropriated upon receipt of formal agreements, which are pending.

CEQA

Exempt, PP02-12-370.

SARA L. HENSLEY

Director of Parks, Recreation

and Neighborhood Services