HomeMy WebLinkAbout101-Council Report-American Recovery and Reinvestment Act 2009.pdfPage 1 of 2
SARATOGA CITY COUNCIL
MEETING DATE: February 18, 2009 AGENDA ITEM:
DEPARTMENT: Public Works CITY MANAGER: Dave Anderson
PREPARED BY: Macedonio Nunez DIRECTOR: John Cherbone
Associate Engineer
SUBJECT: American Recovery and Reinvestment Act of 2009 (ARRA) Funding for the Saratoga
Avenue Overlay and Rehabilitation Project.
RECOMMENDED ACTION:
Adopt resolution supporting the American Recovery and Reinvestment Act of 2009 (ARRA) for the
Saratoga Avenue Overlay and Rehabilitation Project.
REPORT SUMMARY:
Background:
With the national economy experiencing the greatest declines since the 1930’s, Congress and the President
have been actively discussing a multi-billion dollar Federal economic stimulus act which will include
significant funding for transportation infrastructure, including roadways, transit and aviation. President
Obama has set a target date of mid –February for enactment of this bill.
On Tuesday, February 10, the United States Senate passed an $838 billion economic recovery bill (H.R.1),
The American Recovery and Reinvestment Act of 2009, by a 61-37 vote. Public Works staff will apply for
ARRA funds for the Saratoga Avenue Overlay and Rehabilitation Project.
Discussion:
The Valley Transportation Agency (VTA) has developed a potential approval process and funding
distribution procedures with regional and state agencies. One key and consistent element has been the need
to provide local cities and Counties with a share of these funds in order to address their shovel ready
projects, which tend to be local streets and roads repair.
The VTA, as the congestion management agency for Santa Clara County, is responsible for nominating
local streets and road projects to the Metropolitan Transportation Commission (MTC). MTC has provided
VTA with a target of $30.4 million on February 6, 2009. Each city and County’s target has been calculated
based on its percentage of MTC’s total projected cost of maintaining and reconstructing local streets and
county roads over the next 25 years. The need based target percentage for the City of Saratoga is 2.7%,
based on MTC’s 2005 survey which is $820,800.
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Resolutions are due to MTC prior to Caltrans' authorization (obligation) of the ARRA fund. MTC has
given a 60 day period to obligate the funds through Caltrans, which staff is confident it can meet.
FISCAL IMPACTS:
The American Recovery and Reinvestment Act of 2009 do not require a local match.
CONSEQUENCES OF NOT FOLLOWING RECOMMENDED ACTION:
The project will not be approved by MTC and the funds will be reallocated to other cities in Santa Clara
County.
ALTERNATIVE ACTION:
N/A
FOLLOW UP ACTION:
Resolution will be forwarded to the MTC.
ADVERTISING, NOTICING AND PUBLIC CONTACT:
N/A
ATTACHMENTS:
Attachment A – Resolution of Local Support authorizing the filing of an application with Metropolitan
Transportation Commission (MTC) for the American Recovery and Reinvestment Act of 2009 (ARRA)
Funding.