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07 Staff Report - Prospect Avenue Resurfacing Project~pvtH OF MEETING DATE: 813109 ITEM NO. COUNCIL AGENDA REPORT lps GA.~p°s DATE: June 30, 2009 TO: MAYOR AND TOWN COUNCIL FROM: GREG LARSON, TOWN MANAGER SUBJECT: PPW JOB NO. 09-20- PROSPECT AVENUE RESURFACING PROJECT ADOPT A RESOLUTION OF LOCAL SUPPORT FOR AMERICAN RECOVERY AND REINVESTMENT ACT OF 2009 (ARRA) TIER II FUNDING RECOMMENDATION: Adopt a Resolution of local support for American Recovery and Reinvestment Act of 2009 (ARRA) Tier II funding. BACKGROUND: The American Recovery and Reinvestment Act (ARRA) of 2009 is an act of the United States Congress signed into law by President Barack Obama on February 17, 2009. This act is intended to provide a stimulus to the U.S. economy in the wake of the national economic downturn. As part of this $819 billion stimulus package, municipalities in Santa Clara County will receive approximately $30 million for various public works infrastructure improvement projects. This amount is divided among agencies based on population, geographic size, miles of roads, and other factors that have been established by the Metropolitan Transportation Commission (MTC) for distribution of federal funds. The projects that will be funded by the federal stimulus program are classified as "shovel ready." A "shovel ready" project is defined as a construction project that can be completed quickly without additional environmental review and conforms to the guidelines for a federally funded pro] ect. PREPARED BY: TODD CAPURSO Director of Parks and Public Works Reviewed by: Assistant Town Manager Town Attorney Clerk Administrator Finance Community velopment N:1PPw1MANAGEMENTIC0UNC1L1C0UNCIL REPORTS12009 mports\August 3109-20,prospect.A RA.resolution.doe PAGE 2 JUNE 30, 2009 MAYOR AND TOWN COUNCIL SUBJECT: PPW JOB NO. 09-20 - PROSPECT AVENUE RESURFACING PROJECT DISCUSSION: The Town of Los Gatos received $529,000 of ARRA finds for the University Avenue and Blossom Hill Road intersection improvement project, having been approved by the Town Council on May 4, 2009. This project is currently under construction. Town staff was also recently informed by Caltrans that each municipality in Santa Clara County will receive funding for additional paving projects as part of ARRA Tier Il federal funds. Based on information staff has received from Caltrans, it is anticipated the Town will receive an additional amount of approximately $102,000 from ARRA Tier II funds. This grant funding will be used to complete the resurfacing of Prospect Avenue. One of the requirements of using these ARRA federal funds is the adoption of a resolution of support by all municipalities participating in the program. CONCLUSION: Staff recommends that the Town Council adopt the resolution of support for ARRA funding. ENVIRONMENTAL ASSESSMENT: This project is Categorically Exempt pursuant to Sections 15301 (c), and 15303 (e), and 15304 (b) of the State CEQA guidelines. FISCAL IMPACT: The ARRA Tier II federal funds in the amount of approximately $102,000 will fluid the construction of the project. The Town must first spend the funds, then file a request for reimbursement of the project expenses. Any unused balance from ARRA Tier I federal funds can also be applied towards this project if necessary. Attnchrnents- Resolution of local support for the ARRA funds Attachment 1 RESOLUTION RESOLUTION OF THE TOWN COUNCIL OF THE TOWN OF LOS GATOS SUPPORTING THE AMERICAN RECOVERY AND REINVESTMENT ACT OF 2009 (ARRA) FUNDING AND AUTHORIZING THE FILING OF AN APPLICATION FOR FEDERAL AMERICAN RECOVERY AND REINVESTMENT ACT OF 2009 (ARRA) FUNDING AND STATING THE ASSURANCE TO COMPLETE THE PROJECT WHEREAS, Town of Los Gatos (herein referred as APPLICANT) is submitting an application to the Metropolitan Transportation Commission (MTC) for approximately $102,000 in funding from the federal American Recovery and Reinvestment Act of 2009 (ARRA) for the Prospect Avenue Resurfacing Project (herein referred as PROJECT) for the MTC Regional ARRA Program (MTC Resolution No. 3885); and WHEREAS, pursuant to ARRA, and any regulations and/or guidance promulgated thereunder, eligible project sponsors wishing to receive Regional ARRA funds for a project shall submit an application first with the appropriate Metropolitan Planning Organization (MPO), for review and inclusion in the MPO's Transportation Improvement Program (TIP); and WHEREAS, the Metropolitan Transportation Commission (MTC) is the MPO for the nine counties of the San Francisco Bay region; and WHEREAS, MTC has adopted a Regional Project Funding Delivery Policy (MTC Resolution No. 3606, revised) applicable to federal ARRA fiend delivery and has adopted (or is scheduled to adopt) in MTC Resolution No. 3885 such additional requirements as are necessary or appropriate to meet the obligations/award deadlines in the ARRA; and WHEREAS, APPLICANT is an eligible project sponsor for ARRA funds; and WHEREAS, as part of the application for ARRA funding, MTC requires a resolution adopted by the responsible implementing agency stating the following: 1) that the sponsor understands that the ARRA funding is fixed at the programmed amount, and therefore any cost increase cannot be expected to be funded with additional ARRA or other MTC-programmed funds; and 2) that PROJECT will comply with the procedures specified in MTC's Regional Project Funding Delivery Policy (MTC Resolution No. 3606, revised) and with all project- specific requirements as set forth in MTC's Regional ARRA Program (MTC Resolution No. 3885); and PROJECT as described in the application, and if approved, as included in MTC's TIP; and 3) that PROJECT will comply with all the project-specific requirements as set forth in the federal ARRA and appropriate applicable regulations or guidance. NOW, THEREFORE, BE IT RESOLVED that the Town of Los Gatos is authorized to execute and file an application for funding under the American Recovery and Reinvestment Act of 2009 for the Prospect Avenue Project; and BE IT FURTHER RESOLVED that the APPLICANT by adopting this resolution does hereby state that: 1. APPLICANT understands that the ARRA funding for the project is fixed at the MTC approved programmed amount, and that any cost increases must be fielded by the APPLICANT from other funds, and that APPLICANT does not expect any cost increases to be funded with additional ARRA or MTC-programmed funds; and 2. APPLICANT understands the funding deadlines associated with these funds and will comply with the applicable provisions and requirements of the Regional ARRA Program (MTC Resolution No. 3885) and Regional Project Funding Delivery Policy (MTC Resolution No. 3606, as revised); and 3. PROJECT will be implemented as described in the complete application and in this resolution and, if approved, for the amount programmed in the MTC federal TIP; and 4. PROJECT will comply with all the project-specific requirements as set forth in the ARRA and appropriate applicable regulations or guidance; BE IT FURTHER RESOLVED that there is no legal impediment to APPLICANT malcing applications for the fluids; and BE IT FURTHER RESOLVED that there is no pending or threatened litigation that might in any way adversely affect the proposed PROJECT, or the ability of APPLICANT to deliver such PROJECT; and BE IT FURTHER RESOLVED that APPLICANT authorizes its Town Manager or designee to execute and file an application with MTC for ARRA funding for the PROJECT as referenced in this resolution; and BE IT FURTHER RESOLVED that a copy of this resolution will be transmitted to the MTC in conjunction with the filing of the application; and BE IT FURTHER RESOLVED that the MTC is requested to support the application for the PROJECT described in the resolution and to include the PROJECT, if approved, in MTC's TIP. PASSED AND ADOPTED at a regular meeting of the Town Council of the Town of Los Gatos held on the 3rd day of August, 2009 by the following vote: AYES: NAYS: ABSENT: ABSTAIN: SIGNED: MAYOR OF THE TOWN OF LOS GATOS LOS GATOS, CALIFORNIA ATTEST: CLERK ADMINISTRATOR OF THE TOWN OF LOS GATOS LOS GATOS, CALIFORNIA