MEETING DATE:
APRL 28, 2026
SUBJECT:
Title
RESOLUTION NO. 2026-9578 - ACCEPTANCE OF SANDAG SMART GROWTH INCENTIVE PROGRAM GRANT FUNDS, APPROVAL OF AMENDMENTS TO THE FISCAL YEAR 2025-26 CAPITAL IMPROVEMENT PROGRAM BUDGET, APPROPRIATION OF PROJECT FUNDS, AND AUTHORIZATION FOR THE CITY MANAGER TO EXECUTE GRANT AGREEMENTS AND RELATED DOCUMENTS
Body
Recommendation
Recommendation
ADOPT a resolution for the following actions:
1. Accept SANDAG Smart Growth Incentive Program (SGIP) grant funds
2. Amend the Fiscal Year 2025-26 Capital Improvement Program budget to add three new capital improvement program projects
3. Appropriate project funds
4. Authorize the City Manager to execute the SANDAG SGIP grant agreements and related documents
Body
Board or Commission Action
Not applicable
Executive Summary
On December 13, 2024, the San Diego Association of Governments (SANDAG) released a call for projects for the Smart Growth Incentive Program (SGIP) Cycle 6 grant program. On April 8, 2025, City Council authorized the City Manager to submit applications for three projects; San Marcos Boulevard Multi-Way Project, San Marcos Boulevard Corridor Plan, and San Marcos Climate Action Plan Update. If awarded funding by SANDAG, City staff would return to City Council to accept the grant funds and delegate authority to the City Manager to execute the necessary agreements.
Discussion
The San Diego Association of Governments (SANDAG) administers the Smart Growth Incentive Program (SGIP), which seeks to promote projects that encourage alternative transportation, compact development, and sustainable planning principles. On December 13, 2024, SANDAG issued a call for projects for the sixth cycle of the grant. The call for projects offered a total of $45 million in TransNet funding for infrastructure and planning activities that encourage housing and transportation choices.
On April 8, 2025, per staff recommendations, City Council authorized the City Manager to submit applications for the following three projects:
1. San Marcos Boulevard Multi-Way (Capital Improvement Project)
2. San Marcos Boulevard Corridor Plan (Planning Project)
3. Update to the San Marcos Climate Action Plan (CAP)
In accordance with Resolution No. 2025-9425, if SANDAG awarded funding to the City, staff would return to City Council to accept the grant funds and delegate authority to the City Manager to execute the necessary agreements.
On December 12, 2025, the SANDAG Board of Directors approved grant awards for the TransNet SGIP Cycle 6 Planning and Climate Action Plan Projects. On January 23, 2026, the SANDAG Board of Directors approved grant awards for the TransNet SGIP Cycle 6 Capital Projects.
Staff recommend that the City Council accept the SANDAG SGIP grant funds, amend the Fiscal Year (FY) 2025-26 Capital Improvement Program (CIP) budget, appropriate project funds, and authorize the City Manager to execute the grant agreements and related documents.
Environmental Review
The activity performed under this action is not itself a “Project” as defined under Section 15378 of the CEQA Guidelines, and is therefore not subject to environmental review pursuant to CEQA Guidelines section 15060(c)(3).
Fiscal Impact
Funding for the projects is through San Diego Association of Governments (SANDAG) Smart Growth Incentive Program (SGIP) and with local City matching funds. Funds will be appropriated to the FY 2025-26 Capital Improvement Program (CIP) budget as follows:
- Appropriate up to $3,970,697.00 to the San Marcos Boulevard Multi-Way Project CIP #ST026
- Appropriate up to $920,350.00 to the San Marcos Boulevard Corridor Plan CIP #PL013
- Appropriate up to $324,450.00 to the San Marcos Climate Action Plan (CAP) Update CIP #PL014
Attachment(s)
Resolution
Prepared by: Darra Woods, Principal Civil Engineer
Reviewed by: Isaac Etchamendy, Development Services Director
Approved by: Michelle Bender, City Manager