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Home My WebLink AboutStaff Report 2607-6522CITY OF PALO ALTO CITY COUNCIL Special Meeting Monday, August 10, 2026 Council Chambers & Hybrid 5:30 PM Agenda Item 6.Adopt a Resolution Making Required Findings in Support of Acceptance of Funding from Vehicle Registration Fee-Intelligent Transportation Systems (VRF-ITS) Cycle 5 Grant Program; and amendment of the FY 2027 Budget in the Capital Improvement Fund. CEQA Status – Categorically Exempt (CEQA Guidelines section 15301b Existing Facilities). Public Comment City Council Staff Report From: City Manager Report Type: CONSENT CALENDAR Lead Department: Transportation Meeting Date: August 10, 2026 Report #:2607-6522 TITLE Adopt a Resolution Making Required Findings in Support of Acceptance of Funding from Vehicle Registration Fee-Intelligent Transportation Systems (VRF-ITS) Cycle 5 Grant Program; and amendment of the FY 2027 Budget in the Capital Improvement Fund. CEQA Status – Categorically Exempt (CEQA Guidelines section 15301b Existing Facilities). RECOMMENDATION Staff recommends that Council: 1. Adopt a Resolution making required findings in support of the City’s application and award for VRF-ITS Cycle 5 funds in the amount of $500,000 for the Embarcadero Road Traffic Signal Operations and ITS Upgrade Project. 2. Approve and Authorize the City Manager or their designee to execute a Funding Agreement with the Valley Transportation Authority (VTA) to accept a $500,000 grant as part of the 2010 Measure B Vehicle Registration Fee (VRF) Countywide Program Cycle Five. 3. Amend the Fiscal Year Budget Appropriation for the Capital Improvement Fund (requires a 2/3 vote) to: a. Increase the Traffic Signal and Intelligent Transportation Systems project (PL-05030) in the amount of $500,000; and b. Increase revenue from Other Agencies (2010 Measure B Vehicle Registration Fees Cycle 5 in PL-05030) in the amount of $500,000. EXECUTIVE SUMMARY Embarcadero Road between U.S. 101 and Palo Alto High School/Town & Country intersection 700 feet east of El Camino Real in Palo Alto is a residential arterial that serves both local and regional traffic. This roadway segment consists of eight signalized intersections with aging traffic signal hardware. This project will replace the older traffic signal cabinets, implement video detection and accessible pedestrian signals, and implement Automated Traffic Signal Performance Measures (ATSPM) to develop optimal signal operations. This VRF-ITS grant award would provide $500,000 of the $697,000 project cost. BACKGROUND ANALYSIS of as-built plans, and other costs in excess of a potential award amount would be considered as part of the City’s contribution toward the total project costs. There is no local match requirement associated with the VRF grant award. FISCAL/RESOURCE IMPACT STAKEHOLDER ENGAGEMENT ENVIRONMENTAL REVIEW ATTACHMENTS APPROVED BY: May 19, 2026 Dear Ria Hutabarat Lo, This letter confirms that, on May 7, 2026, the VTA Board of Directors approved the Vehicle Registration Fee – Intelligent Transportation System Funds (VRF-ITS), Cycle 5 project list, as shown in Table 1 below. Attachment A is the VTA Board-adopted memo and related materials, for your reference. Table 1: VRF-ITS Cycle 5 – Approved List of Projects Project Name Agency Name Funding Amount Campbell ITS Mobility and Safety Improvements- Phase 1 Campbell $500,000 Stevens Creek Boulevard & De Anza Boulevard Traffic Signal Synchronization Project Cupertino $231,000 Grant Road Corridor Optimization with Artificial Intelligence (AI) Detection Mountain View $218,000 Embarcadero Road ITS Upgrade and Optimization Palo Alto $500,000 San José Arterial Management – Adaptive Traffic Control System Deployment San Jose $450,000 Mathilda Avenue/Sunnyvale-Saratoga Road and Homestead Road Smart Corridor ITS Upgrade Sunnyvale $499,664 Santa Teresa & Tenth Traffic Signal Upgrades Gilroy $101,336 Next Steps We will provide a draft Funding Agreement for your review shortly. If you have any questions, you can contact me at 408-321-5804 or larissa.sanderfer@vta.org. Sincerely, Larissa Sanderfer Transportation Planner III CC: Rafael Rius Date:April 30, 2026 Current Meeting:May 7, 2026 Board Meeting:May 7, 2026 BOARD MEMORANDUM TO:Santa Clara Valley Transportation Authority Board of Directors THROUGH:General Manager/CEO, Carolyn M. Gonot FROM:Chief Engineering & Prog Delivery Officer, Casey Emoto SUBJECT:Vehicle Registration Fee - Intelligent Transportation System Funds -Cycle 5: Project Selections Policy-Related Action: No Government Code Section 84308 Applies: No ACTION ITEM RECOMMENDATION: Approve the recommended list of projects to receive$2.5 million in funding from the Vehicle Registration Feefor Intelligent TransportationSystems (VRF-ITS)-Cycle 5 competitivegrant program. EXECUTIVE SUMMARY: x Thepurpose of this item is to seek approval from the Santa Clara Valley Transportation Authority (VTA)Board of Directors(Board) on the recommended list of projectsto receive funding from the VRF-ITS-Cycle5 competitive grant program. x Therecommendedlist of projects forfunding award was evaluated by a committee composed of volunteer local agencystafffrom thecitiesofCampbell,Mountain View, San Jose, andSunnyvale. x Thecommitteeevaluatedthe grant submissions based on scoring criteriaapproved by the VTA Board at its October2, 2025 meeting. STRATEGIC PLAN/GOALS: The award of VRF-ITS funds align with VTA's goal to create and support an integrated multimodal transportation system that serves all Santa Clara County residents efficiently. In addition, this action advances the goal to pursue, develop, and implement new technologies on Santa Clara County's transportation system. 7.12 BY: DATE: SSAANTAA C L A R A VAALLEY T R A N S PORTATTION A U T H OO RITTYY CA L I F O R NIA N A H OO R APPROVED ACCEPTED ADOPTED AMENDED DEFERRED REVIEWED ^ĂŶƚĂůĂƌĂsĂůůĞǇdƌĂŶƐƉŽƌƚĂƟŽŶƵƚŚŽƌŝƚǇ ŽĂƌĚŽĨŝƌĞĐƚŽƌƐ ůĂŝŶĞ&͘ĂůƚĂŽ͕ŽĂƌĚ^ĞĐƌĞƚĂƌǇ 5/7/2026 Page 2 of 5 FISCAL IMPACT: The requested action in this memorandum would result in awarding funds to projects from the VRF-ITS grant program funds totaling $2.5 million that were allocated to the program by the VTA Board at its October 2, 2025 meeting. BACKGROUND: The source of funding for this grant program is the 2010 Measure B VRF Program that levies a $10 annual vehicle registration fee on motor vehicles owned/registered by Santa Clara County residents. The fees collected must be used to pay for programs and projects that have a relationship or benefit to owners of motor vehicles paying the fee; and the programs and projects must be consistent with the regional transportation plan. The VTA Board adopted an expenditure plan that divides these funds with 80 percent proportionally directed back to Santa Clara County local agencies based on population, 15 percent directed to countywide programs, and five percent for VTA’s administration of the funds. The eligible countywide programs are environmental mitigations, local match for grants and ITS projects. Since the inception of the VRF program, the countywide program has had four three-year funding cycles and is now on its fifth cycle. The VTA Board approved at its October 2, 2025 meeting an allocation of $2.5 million to fund the fifth cycle of VRF-ITS projects. The competitive grant process was developed through the VTA’s ITS Working Group (ITSWG), a working group of VTA’s Technical Advisory Committee (TAC). VTA staff along with a subset of the ITSWG composed of volunteer staff from the cities of Campbell, Mountain View, San Jose, and Sunnyvale developed the project selection criteria. The scoring criteria were also approved by the VTA Board at its October 2, 2025 meeting. The following sections provide a summary of the scoring criteria. Scoring Criteria: Proposed projects will be evaluated based on six criteria: Mobility & Operations, Resilience & Reliability, CostǦeffectiveness, Responsiveness, Identified Community Need, and Project Readiness. xMobility & Operations: Measure the improvement of the movement of people and goods and enhance corridor performance, including traffic signal operations. xResilience & Reliability: Evaluate how the project strengthens the consistency and dependability of the County’s transportation network, including improvements in travel times, traffic flow, and system performance. xCostǦeffectiveness: Assess how efficiently project funds are used and prioritize projects that deliver substantial benefits relative to their cost. xResponsiveness: Project alignment with the goals and priorities identified in the current funding guidelines, Valley Transportation Plan (VTP), and VTA’s Transportation Technology Strategic Plan (TTSP), as well as the clarity and feasibility of the proposed approach. xIdentified Community Need: Documentation of community transportation need identified in an adopted plan or study, and how clearly the benefits are described. xProject Readiness: Evaluate project readiness for implementation, require no 7.12 Page 3 of 5 environmental clearance, and ability to implement within two years. A detailed scope of work and schedule (including a Gantt chart) are required for maximum points. Total possible points for each criteria are listed in Exhibit A. Exhibit A: VRF-ITS Funding Cycle 5: Scoring Areas Criteria Maximum Possible Points Total Points: Attachment A provides additional details on the scoring criteria. DISCUSSION: On October 16, 2025, VTA staff issued a call for projects for the VRF-ITS Cycle 5 with an end date of January 16, 2026. Staff received 16 project proposals that were evaluated by a selection committee comprised of volunteer local agency staff using the Board approved criteria. Members of the selection committee did not score projects from their own agency. The following are the seven projects recommended for funding: 7.12 Page 4 of 5 Table 1: VRF -ITS Cycle 5 - Recommended List of Projects Project Name Agency Name Project Description Funding Amount - Phase 1 Ġ Arterial Management Ͳ Adaptive Traffic Control System Deployment City of San Jose City of Sunnyvale Install video detection equipment and procure and implement adaptive traffic control system. $499,664 Santa Teresa & Tenth Traffic Signal Upgrades City of Gilroy * City of Gilroy Santa Teresa & Tenth Traffic Signal Upgrades Project recommended to receive partial funding after fully funding the other 6 projects. Attachment B provides a summary of the grant submissions and overall scores of each. 7.12 Page 5 of 5 ALTERNATIVES: The VTA Board could choose to not award the VRF-ITS funds as recommended by staff. This would delay the implementation of the recommended ITS projects. CLIMATE IMPACT: The funding awarded to projects through this program involve improving mobility and traffic operations that could lead to reductions in greenhouse gas emissions. ADVISORY COMMITTEE DISCUSSION/RECOMMENDATION: The Technical Advisory Committee considered this item as part of its April 2026 Consent Agenda and recommended Board approval without comment. STANDING COMMITTEE DISCUSSION/RECOMMENDATION: The Mobility Management & Capital Programs Committee, meeting as a committee of the whole in April 2026, considered this item on its regular agenda. Committee members asked whether debriefs were provided to unsuccessful applicants, what regional goals the awarded projects support, and whether cost variability would continue. Staff confirmed that debriefs were provided, that the funded projects align with the Transportation Technology Strategic Plan’s focus on interoperability and improved traffic management, and that cost variability is expected to persist due to economic uncertainty. The Committee requested that this item be forwarded to the Board of Directors' consent agenda for May 7, 2026. Prepared by: David Kobayashi, Traffic Engineer Memo No. 9923 ATTACHMENTS: x Attachment A_Scoring Criteria Memo (PDF) x Attachment B_Scoring Summary (PDF) x 4.16.26_MMCP_VRF-ITS Cycle 5 (PDF) 7.12 Attachment A Scoring Criteria Memo Excerpt for the Vehicle Registration Fee Intelligent Transportation Systems (VRF-ITS) Cycle 5 Competitive grant program. 7.12.a This page left intentionally blank 7.12.a 3331 N. First Street Administration 408-321-5555 San Jose, CA 95134-1927 Customer Service 408-321-2300 Solutions that move you 5 Scoring Areas Submitted project proposals will be scored on how well the proposal meets each of the scoring areas shown in Table 2. The total maximum points for any project proposal shall be 100 points. Table 2 - VRF-ITS Funding Cycle 5: Scoring Areas Scoring Areas Possible Points Mobility & Operations 40 & Reliability 20 15 5 5 15 Total Points: 100 DESCRIPTION OF SCORING AREAS & SCORING OF PROJECTS Submitted project proposals receiving the maximum score in that area will clearly describe how the proposed project meets an identified user need(s) in these areas. Mobility & Operations projects encompass the improved movement of people and goods and the ability to get from one place to another using one or more modes of transport to meet daily needs on a corridor. An operations project seeks to improve the efficiency and performance of a group of traffic signals on a corridor, and this could be an identified significant daily need on a corridor. Resilience & Reliability scoring was introduced in this cycle of VRF-ITS funding to ensure that proposed projects enhance the consistency and dependability of Santa Clara County's transportation network. Over the past two decades, Santa Clara County has emerged as a major employment hub, leading to a significant rise in traffic demand. Consequently, key arterial roadways have become increasingly unreliable for motorists. This scoring criterion is designed to incentivize project proponents to improve roadway reliability. Projects that earn the highest 7.12.a 3331 N. First Street Administration 408-321-5555 San Jose, CA 95134-1927 Customer Service 408-321-2300 Solutions that move you 6 scores in this category will demonstrate measurable benefits, such as reduced travel times, improved traffic flow, or the integration of advanced traffic management systems over an extended period of time, under various weather conditions. Cost-effectiveness scoring was introduced in this cycle of VRF-ITS funding to ensure that limited resources are directed toward projects that deliver the highest impact with the most efficient use of funds. This criterion encourages project proponents to optimize their budgets and pursue innovative, cost-conscious solutions that yield measurable transportation improvements. Projects that demonstrate a strong return on investment by delivering substantial benefits relative to their cost will be prioritized, as they exemplify fiscal responsibility and maximize the overall value to the community. Responsiveness scoring was introduced in this cycle of the VRF-ITS funding to assess how effectively the applicant’s proposed project aligns with the specific goals and objectives outlined in the funding guidelines in the latest VTP and TTSP. This criterion ensures that proposed projects directly address this cycle’s priorities while also evaluating the clarity, feasibility, and practicality of the applicant’s approach. The identified community need scoring area was included in this cycle of VRF-ITS funds to address identified community needs. This need must be identified in a transportation plan or study. The objective of this scoring area is to encourage project proponents to deliver transportation improvements that address challenges faced in their communities, such as limited mobility, and air pollution. Submitted project must clearly describe how the community will benefit from the proposed project will receive a maximum score. The final scoring area is project readiness. As described in the general requirements, projects must be substantially ready and not require any environmental clearance, including a completion within two years after receiving these funds. Submitted projects will receive the maximum score in this area if the project provides a sufficiently detailed scope of work and schedule, including meeting the requirements. The project proponent must submit a detailed scope of work, including Gantt chart showing the duration of each work tasks. VTA as the grantor and its selection committee seeks a concise and cohesive application that demonstrates how the project follows up on the recommendation from the TTSP and clearly meets the immediate needs of the roadway users in the following areas: improves mobility and operations, improves accessibility, enhances safety, and addresses the needs of EPCs. The above listed are key considerations in the scoring of submissions, including an inclusion of a realistic schedule for the project completion meeting the general requirements. Another final key component in the consideration of the submissions is the inclusion of an approach to measure performance and an evaluation how well the project meets the needs of the roadway users. 7.12.a Attachment B Scoring summary for the Vehicle Registration Fee Intelligent Transportation Systems (VRF-ITS) Cycle 5 Competitive grant program. 7.12.b This page left intentionally blank 7.12.b 3URMHFW1DPH 7RWDO6FRUH )XQGLQJ5HFRPPHQGDWLRQ &LW\RI6DQ-RVp$UWHULDO0DQDJHPHQW±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p&RVW(IIHFWLYH(GJH$,$QDO\WLFVIRU'27 $SSOLFDWLRQV 1RW5HFRPPHQGHG 6DQWD&ODUD9DOOH\7UDQVSRUWDWLRQ$XWKRULW\7UDIILF 2SHUDWLRQV0RGHOLQJ7RRO 1RW5HFRPPHQGHG &RXQW\RI6DQWD&ODUD6LJQDO7LPLQJ&RRUGLQDWLRQRQ&HQWUDO 2UHJRQDQG3DJH0LOO([SUHVVZD\V 1RW5HFRPPHQGHG &RXQW\RI6DQWD&ODUD5HSODFHPHQWRI'DPDJHG)LEHU2SWLF &DEOHVDW0XOWLSOH/RFDWLRQV 1RW5HFRPPHQGHG &RXQW\RI6DQWD&ODUD&RXQW\ZLGH&ROOLVLRQ'DWDEDVHDQG 6DIHW\$QDO\VLV6RIWZDUH3URMHFW 1RW5HFRPPHQGHG &LW\RI6DQ-RVp9LGHR'HWHFWLRQ8SJUDGHVDW%LF\FOHDQG 7UDQVLW,QWHUVHFWLRQV 1RW5HFRPPHQGHG &LW\RI6DQ-RVp9LGHR'HWHFWLRQSURMHFWZDVZLWKGUDZQIURPFRQVLGHUDWLRQIRUIXQGLQJLQRUGHUWRDOORZIRUUHJLRQLPSDUWLDOLW\ 95),76&\FOH&RPSHWLWLYH*UDQW6HOHFWLRQ&RPPLWWHH6FRULQJ6XPPDU\ 7.12.b From:herb To:Council, City; Clerk, City Subject:August 10, 2026 CityCouncil Meting, Item #6: Embarcadero Road Traffic Signals Operation Date:Sunday, August 9, 2026 5:37:57 PM CAUTION: This email originated from outside of the organization. Be cautiousof opening attachments and clicking on links. AUGUST 10, 2026 CITY COUNCIL MEETING AGENDA ITEM #6 EMBARCADERO ROAD TRAFFIC SIGNALS OPERATION [Embarcadero Road Improvements (Alma to Emerson)] I urge you to continue this agenda item to a future meeting toprovide staff the opportunity to disclose the changes totraffic signal locations and signal timing for Embarcadero Roadthat includes the installation of new traffic signals onEmbarcadero Road at Emerson Street and High Street. It required three public records requests to obtain the gradingcontract for the Alma Street to Emerson Street portion of theroad that indicated traffic signal installation but omittedanything about the traffic signals themselves. Thank you. Herb Borock