Support and Funding Commitment for State Route 29 Corridor Improvement Project

Adopt a Resolution supporting the American Canyon State Route 29 Corridor Improvement Project and committing up to $5,000,000 in funding for future project phases.

Jason Holley, City Manager

Danielle Schmitz, Executive Director, Napa Valley Transportation Agency

The Napa Valley Transportation Authority (NVTA), in cooperation with the California Department of Transportation (Caltrans) and the City of American Canyon (City), is proposing to improve State Route 29 (SR 29) within American Canyon. The "American Canyon State Route 29 Corridor Improvement Project" (Project) seeks to address various operational and safety needs along the SR 29 corridor.  The current phase is wrapping up and with construction activities around the corner, NVTA is seeking funding commitments and continued local support from American Canyon.  

Project Initiation Document (PID) Phase (2021-2024)

Although substantial planning efforts were undertaken in the early 2010's, the Project achieved compliance with the State's Climate Action Plan for Transportation Infrastructure (CAPTI) (Attachment 7) when NVTA completed the SR 29 Comprehensive Multimodal Corridor Plan (CMCP) in May 2020 (Attachment 6).

Following completion of the CMCP, NVTA completed the SR 29 Project Study Report – Project Development Support (PSR-PDS), also referred to as the "project initiation document" (PID) (Attachment 5).  The SR 29 PSR-PDS aligns with CMCP Guidelines - making it eligible for SB 1 funding - and adheres to Caltrans’ Project Development Procedures Manual by evaluating high-level project alternatives, defining scope, cost, and schedule for each option. Completion of the PID resulted in a critical milestone when Caltrans issued the Project ID (EA 04-4Q010) thereby cementing the Project's bonafides within the vast, complicated array of statewide transportation funding programs.  

Project Approval and Environmental Document (PAED) Phase (2024-2027)

The PSR-PDS contemplates two alternatives, but as explained to Council on February 3, only Alternative 1 is moving forward through environmental review.  Alternative 1 enhances traffic signals with transit signal priority along with "queue jump lanes", and signal interconnection to optimize traffic flow and operational efficiency. It also includes enhanced pedestrian crossings, transit stops, relocated overhead utilities, new bicycle and pedestrian facilities (i.e. Class I trail) and landscaping. 

Alternative 1 does not include roundabouts. Neither the CMCP nor the PSR-PSD contains grade-separated pedestrian crossings; however, nothing precludes the City from locally pursuing them once the Project is complete.  

Consistent with Cooperative Agreement No. 04-2957 (Attachment 4), NVTA is nearing completion of the PAED phase.  This phase produces two key deliverables - a "Project Report" securing Caltrans approval and an environmental document ensuring compliance with the California Environmental Quality Act (CEQA) and the National Environmental Policy Act (NEPA). The PAED phase is scheduled to conclude in Spring 2027.  

Preliminary Engineering (PE) Phase and Right-Of-Way/Utility Relocation (ROW) Phase (2027-2029)

The next two phases of the Project (i.e. PE Phase and ROW Phase) are poised to commence upon conclusion of the PAED Phase subject to available funding.  These phases run in tandem and once complete and funding is secured, then construction can begin.  

The overall proposed Project funding strategy is shown on Attachment1, Ex. A:

NVTA is requesting American Canyon demonstrate its support for the Project by offering a commitment of $5.0M during the various upcoming phases (Attachment 2).  The request amount represents less than 10% of the total cost.  Staff recommends the Council adopts a Resolution of support and funding commitment (Attachment 1).  This Resolution will be included in grant applications later this fall.

The estimated project cost including the current PAED phase and all other future phases is $67.7M.   To date, the City has contributed $1.0M of the $4.7M spent.  Prospectively, American Canyon is being asked to contribute another $5M for a total of $6M (or 9% of the cost).  By way of reference, most state and federal transportation programs require at least 20% local match - or more than 2x what is being asked of American Canyon.

The Recommended Action commits the City to contributing $5.0 M to future phases of the Project.  The most likely source of funding is Traffic Impact Fee (Fund 320).  The TIF Fund has a Fund Balance of approximately $5.1M.  However, the TIF Fund has a large encumbrance ($4.9M for the Rio Del Mar Extension Project TR26-0200) and thus, minimal remaining unrestricted balance. Another Council item tonight seeks to advance additional revenue collection in the TIF program through the update of traffic impact fees.  

The General Fund could also be a source of funding - especially if voters approve additional sales tax revenue this fall.

The exact timeline for making these payments is unknown and dependent upon receipt of state and federal funding.  

Below is list of community engagement and outreach activities undertaken by NVTA and the City over the past 6 years, which has includes the input of more than 200 community members:

SR29 CMCP Phase

November 12, 2019 - Public Meeting/Workshop
April 23, 2020 - Public Meeting/Workshop

PID Phase
April 20, 2021 - Council Update
October 4, 2021 - Public Meeting/Workshop
April 20, 2022 - Public Meeting/Workshop

PA&ED Phase
February 4, 2025 - Council Update
April 30, 2025 - Public Meeting/Workshop

February 3, 2026 - Council Update

May 27, 2026 - Public Meeting/Workshop