09. American Recovery & Reinvestment Act of 2009CUPERTINO
Sumnnary
PUBLIC WORKS DEPARTMENT
AGENDA ITEM ~ AGENDA DATE February 17. 2009
SUBJECT AND ISSUE
Adopt a resolution affirming local support for the American Recovery and Reinvestment Act of
2009 Funding, authorizing the filing of an application for American Recovery and Reinvestment
Act of 2009 Funding, and stating the assurance tc~ complete the project.
BACKGROUND
Currently pending before the U.S. Legislature is the American Recovery and Reinvestment Act
of 2009 (ARRA), which is intended to stimulate economic activity in the United States. Of the
more than $800 billion proposed by the Act, something less than 4%, or approximately $30
billion will be directed to highway construction i:a the country as a whole. Of that latter amount,
approximately $30 million will be available to local jurisdictions in Santa Clara County for local
streets and highway work.
Depending on the exact regional formula that is finally used to appropriate the $30 million
among the local jurisdictions in Santa Clara County, the City of Cupertino should receive
approximately $800,000 of the allocated funds_
Last yeaz, when it was 1Pamed that an unspecified amount of federal economic stimulus (now
proposed as ARRA) funds might become available for infrastructure construction, Cupertino,
along with the other local jurisdictions, submitted a list of potential candidate projects that could
be delivered in a relatively short period of time once the funds were available_
One of those projects named by Cupertino was pavement rehabilitation on portions of
Homestead Road within Cupertino, between Mary Avenue and De Anza Boulevazd. Based on
recent pavement rehabilitation projects completed in Cupertino, staff estimated that the cost of
.design and construction of the project would be approximately $1,000,000.00 for the portion that
is within Cupertino. A portion of the roadway iri this area is within the City of Sunnyvale. And
since Sunnyvale has recently approached us regarding a cooperative project on Homestead Road
between the Foothill and Lawrence Expressways, Staff will pursue a cooperative agreement with
Sunnyvale to construct the rehabilitation project on Homestead within the Mary Avenue to De
Anza Boulevard limits. Such a cooperative project would be the most cost effective way to carry
out the construction, and is Likely to result in Cupertino's cost being closer to the amount of the
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ARIZA funds the City is likely to receive. At present, the City would have to commit in principle
to $200,000.00 in General Fund money (which is currently allocated as part of the pavement
management funding in the adopted 5 year Capital Improvement Program) to provide for the
$1,000,000.00 project estimate.
FISCAL Il~~ACT
Adoption of the attached Resolution will allow the City to receive approximately $800,000.00 in
ARRA funds, which can be used for pavement rehabilitation on a segment of Homestead Road.
A commitment of up to $200,000.00 in Cupertino General Fund monies would have to be
approved.
STAFF RI+ COMMENDATION
Adoption of Resolution No. 09- ~, affirming local support for the American Recovery and
Reinvestment Act of 2009 Funding, authorizing the filing of an application for American
Recovery and Reinvestment Act of 2009 Funding, and stating the assurance to complete the
project.
Submitted by:
~--~.z ~t ~ Cam. ~ C~
Ralph A. Qualls, Jr.
Director of Public Works
Approved for submission:
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David W: Knapp
City Manager
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RESOLUTION NO. 09-025 ~ ~ ^
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CUPERTINO
AFFIRMING LOCAL SUPPORT FOR T[3E AMERICAN RECOVERY AND
REINVESTMENT ACT OF 2009 FUNDING, AUTHORIZING THE FILING OF AN
APPLICATION FOR AMERICAN RECOVERY AND REINVESTMENT ACT OF 2009
FUNDING, AND STATING THE ASSUR:PNCE TO COMPLETE THE PROJECT
WHEREAS, the City of Cupertino (hereinafter APPLICANT) wishes to submit an
application to the Metropolitan Transportation Commission (MTC) for $1,000,000.00 in funding
from the federal American Recovery and Reinvestment Act of 2009 (ARRA) for the Homestead
Road, Mary Avenue to De Anza Boulevard, Rehc:btlLtation Project (hereinafter PROJECT) for
the MTC Regional ARRA Program (MTC Resolution No. 3885, hereinafter PROGRAM); and
WHEREAS, the amount of ARRA funds available to APPLICANT, as set by ARRA
funding and regional allocation formula, is likely 1:o be approximately $800,000.00, so that final
costs of the PROJECT may require additional funding from APPLICANT; and
WHEREAS, pursuant to ARRA, and arty 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 (MT'C) 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 fund 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 pr+~ject sponsor for ARRA funds; and
WHEREAS, as part of the application for ARRA funding, MTC requires a resolution
adopted by the responsible implementing agency skating the following:
1) that the sponsor understands that the ARR. funding is fixed at the programmed amount,
and therefore any cost increase cannot be e:Kpected 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 (M"TC 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, LET IT BE RESOLVED that APPLICANT is authorized to
execute and file an application for funding under the American Recovery and Reinvestment Act
of 2009 for PROJECT; and
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Resolution No. 09-025
BE IT FURTHER BE RESOLVED that the APPLICAN'T' 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 funded 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; and
BE IT FURTHER BE RESOLVED that there is no legal impediment to APPLICANT
making applications for the funds; and
BE IT FURTHER BE RESOLVED that there is no pending or threatened litigation that
might in any way adversely aTFect the proposed PROJECT, or the ability of APPLICANT to
deliver such PROJECT; and
BE IT FURTHER BE RESOLVED that APPLICANT authorizes its City Manager, or the
City Manager's designee to execute and file an application with MTC for ARRA funding for the
PROJECT as referenced in this resolution, and receive, allocate, and expend funds approved
pursuant to the application, and take all related actions; and
BE IT FURTHER BE 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 BE 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. -
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Resolution No. 09-025
PASSED AND ADOPTED at a regular meeting of the City Council of the City of
Cupertino this 17~' day of February, 2009, by the following vote:
Vote Members of the Cit1~ Council
AYES:
NOES:
ABSENT:
ABSTAIN:
ATTEST: APPROVED:
City Cleric
Mayor, City of Cupertino
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