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9 Desk itemMEETING DATE: 08/05/13 ITEM NO: 1 DESK ITEM DATE: AUGUST 5, 2013 TO: MAYOR AND TOWN COUNCIL FROM: GREG LARSON, TOWN MANAGER SUBJECT: PPW JOB NO. 13-22 — HILLSIDE ROAD REPAIR AND RESURFACING PROJECT 811-0007 REMARKS: 1. Authorize a change in funding source for the Hillside Road Repair and Resurfacing Project 811-0007 in the amount of $139,000. On Friday, August 2, 2013, VTA notified municipalities receiving OBAG grant funds that MTC had included federal money in this grant program. Because the administration of federal funds is handled through Caltrans, municipalities must now obtain formal Caltrans authorization before they can proceed with advertising and construction of any project using OBAG funds. As described in the Council Report for this item, the Town has prepared construction documents, received bids and scheduled an award of a construction contract by the Town Council on August 5, 2013. However, with the addition of the new federal fimding process through Caltrans, the Town would be unable to award a contract using OBAG funding at the August 5, 2013 meeting, as it has not gone through the now -required Caltrans approval process. The Town has received a very competitive low bid on this project and staff feels it is in the best interest of the Town to move forward with this project currently, without delays. Staff contacted VTA to explore the possibility of the Town funding this project using local fimds and proceeding with the construction on the upper part of Kennedy Road as planned, and identifying an alternative OBAG-funded project. Staff is recommending that the current hillside project be funded through the Street Repair and Resurfacing Program, which has sufficient funds available. The Town will then create an alternate street repair and resurfacing project using OBAG funds PREPARED BY: Bob Kass Interim Director of Parks and Public Works Reviewed by: t\,�Assistant Town Manager Town Attorney t-Y. Finance N:\PPW\MANAGEMENT\COUNCIL\COUNCIL REPORTS\2013 Reports \080513\8-5-13 DESK ITEM Hillside.Resurfacing.docx PAGE 2 AUGUST 5, 2013 MAYOR AND TOWN COUNCIL SUBJECT: PPW JOB NO. 13-22 — HILLSIDE ROAD REPAIR AND RESURFACING PROJECT 811-0007 REMARKS (confd.I This approach will give the Town staff time to prepare the necessary documents needed for federal approval of a new project, and the Town will not lose any of the OBAG grant funds. Town staff met with VTA staff on August 5, 2013, and confirmed this plan of action and received VTA concurrence. Staff has preliminarily identified road repair and resurfacing on Shannon Road as a candidate project for OBAG funding, with construction tentatively scheduled for the summer of 2014, after all Caltrans and federal review processes are completed. The process will be similar to how the Highway 9/University Avenue Intersection Improvement project utilized federal funds as part of its overall funding package.