HomeMy WebLinkAboutCC Resolution 12679 (ARRA Funding)RESOLUTION OF LOCAL SUPPORT
AMERICAN RECOVERY AND REINVESTMENT ACT OF 2009 (ARRA) FUNDING
RESOLUTION NO. 12679
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN RAFAEL
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, the CITY OF SAN RAFAEL (herein referred as APPLICANT) is
submitting an application to the Metropolitan Transportation Commission (MTC) for
approximately $989,000 in funding from the Federal American Recovery and Reinvestment Act
of 2009 (ARRA) for the `STREET RESURFACING STP 2009' project (herein referred as
PROJECT) for the MTC Regional ARRA Program (MTC Resolution No. 3885) (herein referred
as PROGRAM); and
WHEREAS, in the event that additional ARRA funding becomes available in future, the
Director of Public Works will be authorized to submit application and accept funding for
appropriate projects; 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 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 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 CITY OF SAN RAFAEL is
authorized to execute and file an application for funding under the American Recovery and
Reinvestment Act of 2009 for `STREET RESURFACING STP 2009' 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 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
RESOLVED that there is no legal impediment to APPLICANT making applications for
the funds; 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 Interim Director of Public Works, City
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 in the event the additional ARRA funding becomes available in future,
the APPLICANT authorizes its Director of Public Works, City Manager, or designee to submit
application and receive funding for suitable projects; 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.
I, ESTHER C. BEIRNE, Clerk of the City of San Rafael, hereby certify that the foregoing
resolution was duly and regularly introduced and adopted at a regular meeting of the Council of
said City on the 16`" day of March, 2009, by the following vote, to wit:
AYES: COUNCILMEMBERS:
NOES: COUNCILMEMBERS:
ABSENT: COUNCILMEMBERS:
File No.: 16.06.67
Brockbank, Connolly, Miller & Mayor Boro
None
Heller
ESTHER C. BEIRNE, City Clerk
Date:
February 25, 2009
W.I.:
1512
Referred by:
PAC
ABSTRACT
Resolution No. 3885
This resolution adopts the policy and programming for the American Recovery and
Reinvestment Act (ARRA) Program. The policy contains the project categories that are to be
funded with FY 2008-09 ARRA program funds for inclusion in the 2009 Transportation
Improvement Program (TIP).
The resolution includes the following attachments:
Attachment A - American Recovery and Reinvestment Act Policy and Programming
Attachment B - Tier 1 Programming
Attachment C - Tier 2 Programming
Further discussion of the American Recovery and Reinvestment Act Program is contained in the
MTC Executive Director's Memorandum to the Programming and Allocations Committee dated
February 11, 2009 and the Deputy Executive Director Memorandum to the Commission dated
February 25, 2009.
EXHIBIT A
Date:
February 25, 2009
W.I.:
1512
Referred By:
PAC
RE: American Recovery and Reinvestment Act: Policies and Proerammine
METROPOLITAN TRANSPORTATION COMMISSION
RESOLUTION NO. 3885
WHEREAS, the Metropolitan Transportation Commission (MTC) is the regional
transportation planning agency for the San Francisco Bay Area pursuant to Government Code
Section 66500 e"se .; and
WHEREAS, MTC is the designated Metropolitan Planning Organization for the nine -
county San Francisco Bay Area region (the region) and is required to prepare and endorse a
Transportation Improvement Program (TIP) which includes a list of American Recovery and
Reinvestment Act of 2009 (ARRA) funded projects; and
WHEREAS, MTC developed and endorsed a set of Economic Recovery Principles in
December 2008; and
WHEREAS, MTC took into consideration the Economic Recovery Principles,
Transportation 2030 policies, and investment decisions going into Transportation 2035 to
develop a proposed set of projects and program investment areas to be funded with American
Recovery and Reinvestment Act Funds, as set forth in Attachment A of this Resolution,
incorporated herein as though set forth at length;
WHEREAS, MTC is mindful of the timely use of funds established in the ARRA and has
included in Attachment A regional delivery deadlines in advance of the federal deadlines and
provisions to quickly redirect any funds from projects not meeting the deadlines to ensure that no
funds are lost to the region; and
WHEREAS, using the principles and procedures and criteria set forth in Attachment A of
this Resolution, MTC, in cooperation with the Bay Area Partnership, developed a program of
projects to be funded with federal Surface Transportation Program and Federal Transit
Administration formula funds in the ARRA for inclusion in the federal Transportation
Improvement Program (TIP); and
EXHIBIT A
MTC Resolution No. 3885
Page 2
WHEREAS, MTC has identified a set of Tier 1 projects for amendment into the
Transportation Improvement Program (TIP), as set forth in Attachment B of this Resolution,
incorporated herein as though set forth at length; and
WHEREAS the 2009 TIP will be subject to public review and comment; and
WHEREAS, MTC has identified a set of Tier 2 projects that still need to meet policy and
funding agreements set forth in Attachment A as well as a contingency list of projects that could
use ARRA funds if projects identified in Attachment B are not able to proceed, as set forth in
Attachment C of this Resolution, incorporated herein as though set forth at length; now therefore
be it
RESOLVED that MTC approves the policies and programming for the American
Recovery and Reinvestment Act, as set forth in Attachments A, B, and C of this Resolution; and
be it further
RESOLVED that projects in Attachment B will be amended into in the 2009 TIP, subject
to the final federal approval of the amendment; and be it further
RESOLVED that the Executive Director shall forward a copy of this resolution, and such
other information as may be required, to the Governor, Caltrans, Federal Transit Administration,
and Federal Highway Administration, and to other such agencies as may be appropriate.
METROPOLITAN TRANSPORTATION COMMISSION
Scott Haggerty, Chair
The above resolution was entered into
by the Metropolitan Transportation
Commission at the regular meeting
of the Commission held in Oakland,
California, on February 25, 2009
EXHIBIT A
Date:
February 25, 2009
W.I.:
1512
Referred by:
PAC
Attachment A
Resolution No. 3885
Page 1 of 10
American Recovery and
Reinvestment Act
Policy and Programming
For FY 2008-09
EXHIBIT A
EXHIBIT A Attachment A, MTC Resolution No. 3885
February 25, 2009
American Recovery and Reinvestment Act
Policies and Programming
Table of Contents
BACKGROUND............................................................................................................3
AMERICAN RECOVERY AND REINVESTMENT ACT—REGIONAL INVESTMENT
APPROACH..................................................................................................................3
PROGRAMMINGCATEGORIES...................................................................................4
GENERALPROGRAMMING POLICIES........................................................................4
SCHEDULE..................................................................................................................9
Metropolitan Transportation Commission
American Recovery and Reinvestment Act - Polices and Programming Page 2 of 10
EXHIBIT A
BACKGROUND
Attachment A, MTC Resolution No. 3885
February 25, 2009
The American Recovery and Reinvestment Act (ARRA) enacted a $787 billion economic
recovery package calling for new spending as well as tax cuts. The ARRA includes $48 billion
for the Department of Transportation. Specifically, the proposal includes $27.5 billion in Federal
Highway Administration funding and $8.4 billion in Federal Transit Administration funds. It is
estimated that MTC will receive roughly $154 million through the Surface Transportation
Program sub -allocated program and $340 million in Federal Transit Administration formula
funds.
The ARRA is meant to jumpstart the economy and as such includes provisions to ensure timely
expenditure of funds. The table below summarizes the `use it or lose it' rules.
Type of Funds Deadlines
STP Sub -allocated Funds ■ Obligation within 1 Year
■ All funds expire if not obligated by September 20, 2010
FTA Formula Funds ■ 50% of Funds: Obligation within 180 days
Sections 530715309 ■ Remaining Funds: Obligation within 1 Year
■ All funds expire if not obligated by September 20, 2010
AMERICAN RECOVERY AND REINVESTMENT ACT --REGIONAL INVESTMENT
APPROACH
To put this much-needed funding capacity to best use, staff is recommending an approach that
complements several regional initiatives already underway as well as the priorities established in
the region's long-range plan and the recently adopted Economic Recovery principles. The
proposal is also mindful of the aggressive project delivery requirements.
1. Focus Investments on Quick -Hitter System Preservation Projects: Staff is
recommending investment of $388 million of the funds on system preservation projects.
This translates into roughly $270 million to transit for system reinvestment and roughly
$122 million for local streets and road reinvestment.
2. Make Strategic Investments that Support New Economy: Staff is also recommending
investing nearly $102 million of the economic recovery funds to support longer-term
infrastructure projects that will lay the groundwork for enhanced mobility in the Bay
Area and broader national goals such as climate protection and energy security. In this
vein, staff is recommending that funding be directed to one regional transit expansion
project, the BART Oakland Airport Connector, a project that will help complete train to
plane connection. Similarly, staff is recommending that initial investments be made
toward improved freeway management systems, dubbed the Freeway Performance
Initiative.
3. Reinforce Commitments to Regional Initiatives and Priorities: The proposed
program of projects continues to advance and reinforce regional commitments and
project priorities such as system preservation, the Resolution 3434 Regional Transit
Expansion Program, the Freeway Performance Initiative, and critical safety
Metropolitan Transportation Commission
American Recovery and Reinvestment Act - Polices and Programming Page 3 of 10
EXHIBIT A
Attachment A, MTC Resolution No. 3885
February 25, 2009
improvements. Specifically, in the area of safety, staff proposes to fund a first phase of
the Vasco Road Safety project in Contra Costa County as well as several North Bay
safety projects using federal STP sub -allocated funds.
4. Ensure Regional Success in Project Delivery: Rehabilitation and maintenance projects
will be over -programmed to ensure that there are shelf -ready projects should there be
obstacles in delivering the larger projects and/or the system reinvestment projects. The
region will establish deadlines in advance of the federal deadlines — one set for the quick -
hitters and a secondary milestone for the larger more complex projects that are expected
to take longer for delivery.
PROGRAMMING CATEGORIES
In summary, the breakdown of the funding proposal is summarized below for expected regional
Surface Transportation Program and Federal Transit Administration funds:
All Dollars in Millions
Funding
Program Available
Focus Area
Transit $3401
System
FTA 5307,E
Preservation
5309(
Train to
Plane
Surface
Transp.
Program
$154 System
Preservation
Safety
Safety
Smart
Highways
Project Name
Transit Rehabilitation
Oakland Airport
Connector
Local Road Rehabilitation
Vasco Road Safety Imps -
CC County
North Bay Safety
Improvements
Freeway Performance
Initiative — Ramp Meters
Proposed
Regional
Investment
$270 J
$70
Subtotal: $340
$122
$10
$3
$19
Subtotal: $154 f
Total: $494 i
GENERAL PROGRAMMING POLICIES
1. Public Involvement. MTC is committed to a public involvement process that is proactive
and provides comprehensive information, timely public notice, full public access to key
decisions, and opportunities for continuing involvement. MTC provides many methods to
fulfill this commitment, as outlined in MTC's Public Participation Plan, Resolution No.
3821. The Commission's adoption of the ARRA program, including policy and procedures,
are similarly subject to the MTC Public Participation Plan. MTC's advisory committees and
Metropolitan Transportation Commission
American Recovery and Reinvestment Act - Polices and Programming Page 4 of 10
EXHIBIT A
Attachment A, MTC Resolution No. 3885
February 25, 2009
the Bay Area Partnership were consulted in the development of the region's ARRA funding
program.
2. 2009 Transportation Improvement Program (TIP). Projects approved as part of the
ARRA Program must be amended into the 2009 TIP. The federally required TIP is a
comprehensive listing of all San Francisco Bay Area transportation projects that receive
federal funds, and/or subject to a federally required action, such as federal environmental
clearance, and/or are regionally significant for air quality conformity or modeling purposes.
It is expected that funding for the System Preservation projects will be programmed in the
TIP, to the fullest extent possible, as Grouped Project Listings.
3. Air Quality Conformity. In the Bay Area, it is the responsibility of MTC to make an air
quality conformity determination for the TIP in accordance with federal Clean Air Act
requirements and Environmental Protection Agency (EPA) conformity regulations. MTC
evaluates the impact of the TIP on regional air quality during the biennial update of the TIP.
Since the 2009 air quality conformity finding has been completed for the 2009 TIP, no non-
exempt projects that were not incorporated in the finding will be considered for funding in
the American Recovery and Reinvestment Act Program.
4. Environmental Clearance. Project sponsors are responsible for compliance with the
requirements of the California Environmental Quality Act (Public Resources Code Section
21000 et seq.), the State Environmental Impact Report Guidelines (14 California Code of
Regulations Section 15000 et seq.), and the National Environmental Protection Act (42 USC
Section 4-1 et seq.) standards and procedures.
5. Application, Resolution of Local Support, and Opinion of Legal Counsel. Project
sponsors/ Implementing Agencies must submit a completed project application for each
project proposed for funding. The project application consists of two parts: 1) an application
submittal and/or TIP amendment request form to MTC staff, and 2) Resolution of Local
Support approved by the project sponsor/ Implementing Agency's Board.
6. Project Screening and Compliance with Regional and Federal Requirements: MTC staff
has performed a preliminary review of projects proposed for American Recovery and
Reinvestment Act Program to ensure 1) eligibility; 2) RTP consistency; 3) project readiness
and 4) other requirements of the ARRA legislation. The projects are also subject to
compliance with the following:
• Federal Project Eligibility;
• RTP Consistency;
• Title VI Compliance;
• Accommodations for Bicyclists, Pedestrians and Persons with Disabilities (FHWA
funds only);
• Local Resolution of Support; and
• Fully Funded Projects.
In addition to the above, the following requirements would apply to FTA funded projects per
MTC Resolution 3841:
Metropolitan Transportation Commission
American Recovery and Reinvestment Act - Polices and Programming Page 5 of 10
EXHIBIT A
Attachment A, MTC Resolution No. 3885
February 25, 2009
• Eligibility for funding under the FTA Urbanized Area Formula, Fixed Guideway
Modernization and/or Rural and Small Urban Areas programs.
• Capital project under FTA definition of capital; operating assistance is not eligible.
• Asset useful life requirements
• All other applicable federal requirements
Finally, the following factors were considered in the project selection process as required by
the ARRA:
• Funds can be obligated and contracts can be awarded within the deadlines of this Act.
• Inclusion status in an approved Statewide Transportation Improvement Program
(STIP) and/or Metropolitan Transportation Improvement Program (TIP)
• Projection of project completion within a three-year time frame
• Location in economically distressed areas as defined by section 301 of the Public
Works and Economic Development Act of 1965, as amended (42 U.S.C. 3161) for
FHWA funding only.
7. MTC Routine Accommodations of Pedestrians and Bicyclists Policy: Applicable project
sponsors need to complete the Routine Accommodations of Pedestrians and Bicyclists
Accommodations checklist and make this information available to local bicycle advisory
committees prior to project programming in the TIP as set forth by MTC Resolution 3765.
8. System Preservation Distribution: The System Preservation funding will be distributed to
the county CMAs and transit operators using established formulas developed by MTC and
the Bay Area Partnership for the distribution of federal funding for purposes of transit and
local streets and roads rehabilitation, as described below.
Svstem Preservation Distribution - Local Streets and Roads Rehabilitation
The county -wide shares are calculated using an allocation formula developed and
approved by the Local Streets and Roads Working Group (a group comprised of local
agency public works staff that reports to the Partnership Board), in collaboration with
MTC staff. The allocation formula contains four factors, weighted 25% each, including
population, lane mileage, arterial and collector shortfall, and preventive maintenance
performance. The performance share of the formula is weighted by the total share derived
from the other three factors. This weighting is performed to take into account the relative
size and need of the local agencies when distributing the 25 percent of available funding
that is conditioned on performance. Each jurisdiction's share of the available funding is
calculated individually and then the shares are summed at the county level.
Svstem Preservation Distribution — Transit Rehabilitation
The transit formula used is essentially that established during the last recessionary period
among all the transit operators and incorporated into a 10% flexible set-aside for operators
in the annual FTA formula funds. The numbers are 50% based on ridership and 50%
based on FTA revenue factors. FTA revenue factors provide the basis for apportioning the
funds nationally by urbanized area and include revenue vehicle miles, passenger miles,
Metropolitan Transportation Commission
American Recovery and Reinvestment Act - Polices and Programming Page 6 of 10
FOIA Wrn
Attachment A, MTC Resolution No. 3885
February 25, 2009
and operating cost. Because FTA money comes into the region in 12 distinct urbanized
areas, the regional Transit Capital Priorities Process and Criteria establishes a percentage
of the set-aside in each urbanized area for each eligible operator. For the ARRA funding,
staff has aggregated the percentages regionally by weighting the amount of funds by
urbanized area.
9. Project Delivery and Award Deadline Conditions: A primary objective of the ARRA
program is economic recovery and as a result, projects receiving grants are required to meet
stringent project delivery deadlines set forth by the legislation and by MTC. These deadlines
ensure that ARRA funds will not be lost to the region.
Funding for System Preservation projects that do not meet the deadline will be redirected to
another eligible project within the county (FHWA) or urbanized area (FTA), at the discretion
of the County Congestion Management Agency, or redirected at the discretion of the transit
operator, as applicable.
Funding for Non -System Preservation projects that do not meet the prescribed deadlines will
be redistributed to the system preservations projects within the applicable categories.
Svstem Preservation Proiects-- Local Streets and Roads
a) Although the ARRA does not provide early delivery deadlines for the regional sub -
allocated STP funding, by establishing delivery deadlines for the entire system
preservation funding, job creation and preservation is expedited. Therefore, all Local
Streets and Roads System Preservation funds have a regional obligation (E-76 / federal
authorization to proceed) deadline of May 31, 2009 (approximately 90 days after
Commission approval). Funds not obligated by May 31, 2009 are subject to reevaluation
by MTC, Caltrans Local Assistance and CMA staff, for redirection to other projects that
can be delivered no later than July 31, 2009. To meet the May 31, 2009 obligation
deadline, project sponsors must submit their Preliminary Environmental Studies (PES),
field review forms and related documentation to Caltrans by March 5 (approximately one
week after Commission approval), and must receive NEPA clearance and submit all
remaining federal -aid required documentation, including the final PS&E package to
Caltrans by April 30, 2009 (approximately 60 days). Funds that miss the April 30th NEPA
Clearance / final PS&E submittal deadline are subject to reevaluation by MTC, Caltrans
Local Assistance and CMA staff for redirection to other projects that can meet the
obligation deadline.
b) All funds must be in an awarded contract by September 30, 2009 (approximately 210
days). This is consistent with the intent of the ARRA to create and preserve jobs as soon
as possible. Furthermore, project sponsors are required to submit their required Award
notification to Caltrans (with a copy to the CMAs) within 30 days of award, and no later
than October 31, 2009.
c) Additional timely use of funds as outlined in the regional project delivery policy (MTC
Resolution 3606) must also be met. Especially the post -award deadlines. Project sponsors
that do not meet the timely use of funds deadlines are subject to disqualification and/or
limitation of regional discretionary funding during the next federal authorization Act.
Metropolitan Transportation Commission
American Recovery and Reinvestment Act - Polices and Programming Page 7 of 10
EXHIBIT A Attachment A, MTC Resolution No. 3885
February 25, 2009
Svstem Preservation Proiects-- Transit
a) All funds have a regional obligation (approved FTA grant) deadline of May 31, 2009
(approximately 90 days following Commission approval). Funds not obligated by May 31
are subject to redirection to other projects that can meet the Act's expedited timely use of
funds provisions. Although the ARRA only requires that 50 percent of the funds must
meet the earlier deadline, by establishing a delivery deadline for all of the system
preservation projects, funding can be redirected within the region should some projects
fail to deliver by the federal deadline.
b) All funds must be expended or in an awarded contract by November 30, 2009,
(approximately 270 days following Commission action). This is consistent with the intent
of the ARRA to create and/or preserve jobs as soon as possible.
c) Project sponsors must adopt the Local Resolution of Support by March 31st.
Non-Svstem Preservation Proiects
a) All non -system preservation funds have a regional obligation (E-76 / federal
authorization to proceed / approved FTA grant) deadline of November 30, 2009
(approximately 270 days following enactment). Funds not obligated or in an approved
FTA grant by November 30 are subject to redirection to other projects that can meet the
Act's expedited timely use of funds provisions.
b) For all non -system preservation projects, all funds must be in an awarded contract by
December 31, 2009 (approximately 300 day from enactment). This is consistent with the
intent of the ARRA to create and/or preserve jobs as soon as possible.
10. Project Policy and Funding Commitment Conditions
The deadline for meeting the policy and funding commitments necessary for amendment into the
TIP is June 2009.
a) Oakland Airport Connector Project:
■ Funding will be amended into the TIP after release of bid documents for the project
including a BART funding plan that identifies commitments of the following for a
total of $151 million, depending on whether a public financing or public-private
partnership is pursued:
■ $30 million in Doolittle savings;
■ $50 million in Transbay Tube seismic savings;
■ $71 million in BART contribution (High Speed Rail
Con nectivity/TIFIA/Private Financing)
■ MTC execution of the grant will follow confirmation of successful bid process and
ability to move to contract award.
Metropolitan Transportation Commission
American Recovery and Reinvestment Act - Polices and Programming Page 8 of 10
EXHIBIT A
c) Safetv Proiects
Attachment A, MTC Resolution No. 3855
February 25, 2009
Vasco Road: Funding will be amended into the TIP after determination and secured
commitments for the following: $8 million in local funds to match the regional
commitment.
d) Freewav Performance Initiative
■ Funding will be amended into the TIP after determination and secured commitments
for the following:
o All projects must be included in Freeway Performance Initiative (FPI) as
described in the Transportation 2035 Plan.
o FPI projects which include ramp metering elements must have a local resolution
of support to activate the metering.
11. Fixed Program and Specific Project Selection. The regional ARRA program is project
specific and the ARRA funds programmed to projects are for those projects alone. Any
changes must be accompanied by an amendment to the Transportation Improvement
Program. The ARRA Program funding is fixed at the programmed amount, and therefore
any cost increase cannot be expected to be funded with ARRA funds. Project sponsors are
responsible for securing the necessary funds, in the case of cost increases or additional
funding needed to complete the project including contingencies.
12. Local Match. Projects may be funded with ARRA Program funding up to 100% of the total
project cost, unless otherwise noted.
13. Priority Development Areas. In Transportation 2035, the Commission's
transportation/land use and climate change policies seek to align "focused growth" land use
principles and actual transportation investments. Specifically, new funding, such as the
ARRA, provides the most viable opportunity to make this connection. However, the rapid
turn -around to adopt the program, coupled with the timely use of funds deadlines, hinder its
direct linkage to such incentives. Therefore, staff is directed to begin developing a priority
development area (PDA) priority investment strategy in advance of a completed
Authorization, in order to guide the federal programming under the new federal law, as a
proxy and complement to the funding opportunities presented by the ARRA.
SCHEDULE
As noted previously, this supplementary funding is subject to very short project delivery
deadlines. In order to ensure that the funds are not lost due to not meeting the obligation
deadlines, the policy development and programming will be on an expedited timeline as outlined
below.
Metropolitan Transportation Commission
American Recovery and Reinvestment Act - Polices and Programming Page 9 of 10
EXHIBIT A Attachment A, MTC Resolution No. 3885
February 25, 2009
American Recovery and Reinvestment Act (ARRA) Program
Programming Schedule
February 6, 2009 Partnership Board meeting
February 10,2009 MTC Joint Advisors meeting
February 11. 2009 Programming and Allocations Committee review of regional programming proposal
February 17, 2009 Enactment of the ARRA
February 25, 2009 Commission approval of ARRA program and accompanying TIP amendment
March 5, 2009 PES/Field Review Documents Submittal Deadline — LS&R System Preservation Projects
April 30, 2009 60 -day NEPA clearance and Final PS&E Package Deadline — LS&R System Preservation
May 31, 2009 90 -day Obligation (E-76) Deadline — LS&R System Preservation Projects
90 -day Grant Award Deadline Transit System Preservation Projects
June 30, 2009 Conditions met — Non -System Preservation Projects
September 30, 2009 210 -day Contract Award Deadline LS&R System Preservation Projects
November 30, 2009 270 -day Obligation/Grant Award Deadline — All Non -System Preservation Projects
270 -day Contract Award Deadline - Transit System Preservation Projects
December 31, 2009 300 -day Contract Award Deadline All Non -System Preservation Projects
Metropolitan Transportation Commission
American Recovery and Reinvestment Act - Polices and Programming Page 10 of 10
Metropolitan Transportation Commission
Regional Project Funding Delivery Policy
for STP and CMAQ Funding
MTC Resolution No. 3606
July 23, 2008
General Policv
EXHIBIT B
The region has established deadlines for funding in the regional Surface Transportation Program (STP)
and Congestion Mitigation and Air Quality Improvement (CMAQ) Program to ensure timely project
delivery against state and federal funding deadlines. This resolution establishes a standard policy for
enforcing project funding deadlines and project substitutions for these funds during the Safe,
Accountable, Flexible, Efficient Transportation Equity Act: A Legacy for Users (SAFETEA) and subsequent
extensions.
STP and CMAQ funds are to be programmed in the Transportation Improvement Program (TIP), up to
the apportionment level for that fiscal year, in the fiscal year in which the funds are to be obligated by
the Federal Highway Administration (FHWA) or transferred to the Federal Transit Administration (FTA),
similar to the programming of the State Transportation Improvement Program (STIP).
The regional STP and CMAQ programs are project specific. Projects are chosen for the program based on
eligibility, project merit, and deliverability within the established deadlines. The programmed STP and
CMAQ funds are for those projects alone. STP/CMAQ funds may be used for any phase of the project in
accordance with Caltrans procedures and federal regulations.
It is the responsibility of the Implementing agency at the time of project application and programming to
ensure the regional deadlines and provisions of the regional project funding delivery policy can be met.
Agencies with difficulty in delivering existing federal -aid projects will have future programming and
Obligation Authority (OA) restricted for additional projects until the troubled projects are brought back on
schedule, and the agency has demonstrated it can delivery new projects within the required deadlines.
MTC staff will actively monitor and report the obligation status of projects to the Working Group (FWG)
of the Bay Area Partnership. The FWG will monitor project funding delivery issues as they arise and
make recommendations to the Partnership Technical Advisory Committee (PTAC) as necessary.
The implementing agency or MTC may determine that circumstances may justify changes to the STP and
CMAQ programming. These changes, or amendments to these regional programs, are not routine.
Proposed changes will be reviewed by MTC staff before any formal actions on program amendments are
considered by the Commission. STP/CMAQ funds may be shifted among any phase of the project without
the concurrence or involvement of MTC if allowed under Caltrans procedures and federal regulations. All
changes must follow MTC policies on the Public Involvement Process and Federal Air Quality Procedures
and Conformity Protocol. Changes must be consistent with the Regional Transportation Plan (RTP), must
not adversely affect the expeditious implementation of Transportation Control Measures (TCMs), must
comply with the provisions of Title VI, must not negatively impact the deliverability of other projects in
the regional programs, and must not affect the conformity finding in the TIP.
CT Metropolitan Transportation Commission 1 July 23, 2008
Regional Project Funding Delivery Policy MTC Resolution No. 3606
for STP and CMAQ Funding Page 2 of 11 Revised July 23, 2008
In selecting projects to receive redirected funding, the Commission may use existing lists of projects that
did not receive funding in past programming exercises, or direct the funds to agencies with proven on-
time project delivery, or could identify other projects with merit to receive the funding, or retain the
funding for future programming cycles. Final decisions regarding the reprogramming of available funds
will be made by the Commission.
Proarammina to A000rtionment in the Year of Obligation
Federal funds are to be programmed in the TIP, up to the apportionment level available, in the fiscal year
in which the funds are to be obligated by FHWA or transferred to FTA. The implementing agency is
committed to obligate/transfer the funds by the required obligation deadline once the program year in
the TIP becomes the current year, and the annual Obligation Plan has been developed for that year. This
will improve the overall management of federal apportionment and Obligation Authority (OA) within the
region and help ensure apportionment and OA are available for projects that are programmed in a
particular year. It will also assist the region in meeting federal financial constraint requirements. At the
end of the federal authorization Act, MTC will reconcile any differences between final apportionments,
programmed amounts, obligations and actual OA received.
Advanced Proiect Selection Process
Obligations for funds advanced from future years of the TIP will be permitted only upon the availability of
surplus OA with Advance Construction Authorization (ACA) projects in the annual obligation plan having
first priority for OA in a given year, and current programmed projects that have met the delivery
deadlines having second priority for OA in a given year. Advanced obligations will be based on the
availability of OA and generally will only be considered after February 1 of each fiscal year. In some years
OA may not be available for advancements until after May 1, but the funds must be identified in the
annual obligation plan, and the obligation request for the advanced OA should be received by Caltrans
prior to May 1.
Agencies requesting advanced funding should be in good standing in meeting deadlines for other federal -
aid projects. Restrictions may be placed on the advancement of funds for agencies that are delivery -
challenged (continue to have difficulty delivering projects within required deadlines) or have current
projects that are in violation of funding deadlines. MTC may consult with Caltrans and/or the appropriate
CMA to determine whether the advancement of funds is warranted and will not impact the delivery of
other projects.
Implementing agencies wishing to advance projects may request Advance Construction Authorization
from FHWA, or pre -award authority from FTA, to proceed with the project using local funds until OA
becomes available. ACA does not satisfy the obligation deadline requirement.
Important Tip: Caltrans releases unused local OA on May 1 of each year. Projects that do not access
their OA through obligation or transfer to FTA by that date are subject to having their funds taken by
other regions. This provision allows the advancement of projects after May 1, by using unclaimed OA
from other regions.
Advance Construction Authorization IACA1
Agencies that cannot meet the regional, state or federal requirements have the option to use Advance
Construction Authorization (ACA) rather than seeking an obligation of funds and risk losing the funds due
to missing subsequent deadlines. For example if the expenditure of project development funds or award
of a construction contract cannot easily be met within the required deadline, the agency may consider
CAk%- Metropolitan Transportation Commission 2 July 23, 2008
for STP and CMAQ Funding Page 3 of 11 Revised July 23, 2008
using ACA until the project pnase is underway and the agency is ready to invoice. ACA may also be
considered by agencies that prefer to invoice once — at the end of the project, rather than invoice on the
required semi-annual basis.
ACA conversion to full obligation receives priority in the annual obligation plan. MTC will monitor the
availability of OA to ensure delivery of other projects is not impacted by ACA conversions. At the end of
the federal authorization Act, ACA may be the only option available should the region's OA be fully used.
Proiect Cost Savinas/Chances in SCoge/Proiect Failures
Projects may be completed at a lower cost than anticipated, or have a minor change in scope resulting in a
lower project cost, or may not proceed to implementation. In such circumstances, the implementing
agency must inform MTC, Caltrans and the appropriate county Congestion Management Agency (CMA)
within a timely manner that the funds resulting from these project reductions will not be used. Federal
regulations require that the project proceed to construction within ten years of initial federal authorization
of any phase of the project. Furthermore, if a project is canceled, or fails to proceed to construction in ten
years, FHWA will de -obligate any remaining funds, and the agency is required to repay any reimbursed
funds.
Project funding reductions accrued prior to the established obligation deadline are available for
redirection within the program of origin. Savings within the CMA administered programs (such as Local
Streets and Roads Rehabilitation) are available for redirection within the program by the respective CMA,
subject to Commission approval. Project funding reductions within regional competitive programs, such
as the Transportation for Livable Communities (TLC) program, or for regional operations projects, are
available for redirection by the Commission. For all programs, projects using the redirected funding
reductions prior to the obligation deadline must still obligate the funds within the original deadline.
Minor adjustments in project scope may be made to accommodate final costs, in accordance with
Caltrans procedures and federal regulation. However, STP/CMAQ funding for the project is limited to the
amount approved by MTC. Once funds are de -obligated there is no guarantee the funds will be available
for the project.
Project funding reductions or unused funds realized after the obligation deadline return to MTC. Any
STP/CMAQ funds that have been obligated but remain unused will be deobligated and returned to the
Commission for reprogramming.
Important Tip: If a project is canceled as a result of the environmental process, the agency does not
have to repay reimbursed costs for the environmental activities. However, if a project is canceled after
the environmental process is complete, or a project does not proceed to construction within 10 years, the
agency is required to repay all reimbursed federal funds.
Annual Obliaation Plaii
California Streets and Highway Code 182.6(f) requires the regions to notify Caltrans of the expected use
of OA each year. Any local OA, and corresponding apportionment that is not used by the end of the fiscal
year will be redistributed by Caltrans to other projects in a manner that ensures the state continues to
receive increased obligation authority during the annual OA redistribution. There is no provision in state
statute the local apportionment and OA used by the state will be returned.
MTC will prepare an annual Obligation Plan at the beginning of each federal fiscal year based on the
funding programmed in the TIP, and the apportionment and OA expected to be available. This plan will be
the basis upon which obligations will be made for the year. It is expected that the CMAs and project
jK►-'
fletroroR.-oT iigo^rta:irm ; r, if,sio° July 23, 2008
Regional Project Funding Delivery Policy MTC Resolution No. 3606
for STP and CMAQ Funding Page 4 of 11 Revised July 23, 2008
sponsors with funds programmed in the TIP will assist in the development of the plan by ensuring the TIP
is kept up to date, and if necessary, review the plan prior to submittal to Caltrans. Projects listed in the
plan that do not receive an obligation are subject to de -programming. Projects to be advanced from future
years, or converted from ACA must be included in the plan to receive priority for obligations against
available OA.
If a project or project phase will not be ready for obligation in the year programmed, the agency
responsible for the project should request to delay the project prior to entering the program fiscal year.
The agency shall be considered committed to delivering the project (obligating the funds or transferring
to FTA) once the program year becomes the current fiscal year, and the annual Obligation Plan has been
developed for that year.
In the event that OA is severely limited, such as at the end of a federal authorization act, and there is
insufficient OA to obligate all of the projects in the annual obligation plan, restrictions may be placed on
funds for agencies that are delivery -challenged (continue to have difficulty delivering projects within
required deadlines) or have current projects that are in violation of funding deadlines.
Soecific Policv Provisions
Projects selected to receive STP or CMAQ funding must have a demonstrated ability to use the funds
within the established regional, state and federal deadlines. This criterion will be used for selecting
projects for funding, and for placement of funding in a particular year of the TIP. Agencies with a
continued history of being delivery -challenged and continue to miss funding delivery deadlines will have
restrictions placed on future obligations and programming.
It is the responsibility of the implementing agency to ensure the funds can be used within the established
regional, state and federal deadlines and that the provisions of the regional funding delivery policy can be
met. It is also the responsibility of the implementing agency to continuously monitor the progress of the
programmed funds against regional, state and federal deadlines, and to report any potential difficulties in
meeting these deadlines, to MTC, Caltrans and the appropriate county CMA within a timely manner, to
seek solutions to potential problems well in advance of potential delivery failure or loss of funding.
Specific provisions of the Regional Project Funding -Delivery Policy are as follow:
• Field Reviews
Implementing agencies are required to request a field review from Caltrans Local Assistance within
12 months of approval of the project in the TIP, but no less than 12 months prior to the obligation
deadline of construction funds. This policy also applies to federal -aid projects in the STIP. The
requirement does not apply to projects for which a field review would not be applicable, such as FTA
transfers, regional operations projects and planning activities.
Failure for an implementing agency to make a good -faith effort in requesting and scheduling a field
review from Caltrans Local Assistance within twelve months of programming into the TIP could result
in the funding being reprogrammed and restrictions on future programming and obligations.
Completed field review forms must be submitted to Caltrans in accordance with Caltrans Local
Assistance procedures.
• Environmental Submittal Deadline
Implementing agencies are required to submit a complete environmental package to Caltrans for all
projects (except those determined Programmatic Categorical Exclusion as determined by Caltrans at
CJK Metropolitan Transportation Commission 4 July 23, 2008
Regional Project Funding Delivery Policy
for STP and CMAQ Funding Page 5 of 11
MTC Resolution No. 3606
Revised July 23, 2008
the field review), twelve months prior to the obligation deadline for right of way or construction funds.
This policy creates a more realistic time frame for projects to progress from the field review through
the environmental and design process, to the right of way and construction phase. If the
environmental process, as determined at the field review, will take longer than 12 months before
obligation, the implementing agency is responsible for delivering the complete environmental
submittal in a timely manner. Failure to comply with this provision could result in the funding being
reprogrammed. The requirement does not apply to FTA transfers, regional operations projects or
planning activities.
0 Disadvantaged Business Enterprise (DBE)
Obligation of federal funds may not occur for contracted activities (any combination of
environmental/ design/ construction/ procurement activities performed outside the agency) until and
unless an agency has an approved DBE program and methodology for the current federal fiscal year.
Therefore, agencies with federal funds programmed in the TIP must have a current approved DBE
Program and annual methodology (if applicable) in place prior to the fiscal year the federal funds are
programmed in the TIP.
STP/CMAQ funding for agencies without approved DBE methodology for the current year are subject
to redirection to other projects after February 1. Agencies should begin the DBE process no as early
as possible to meet the February I deadline. Projects advanced under the Expedited Project Selection
Process (EPSP) must have an approved DBE program and annual methodology for the current year
(if applicable) prior to the advancement of funds.
Important Tip: An agency DBE plan is required before the obligation of federal funds. Furthermore,
an annual DBE methodology must be approved prior to the obligation of federal funds for services to
be contracted out (such as environmental/ design/ construction/ procurement activities performed
outside the agency). An annual DBE methodology may not be required if the activities (such as
environmental or design) are to be performed in-house using internal staff resources. It generally
takes a minimum of 90 days (including a minimum 45 -day public comment period) to have an annual
DBE methodology approved. Due to the complexities of the DBE requirements, agencies should
contact Caltrans Local Assistance to determine whether an annual DBE methodology is required. If a
DBE methodology is required, agencies are encouraged to begin the process by June of the
preceding federal fiscal year so the process may be complete by the beginning of the federal fiscal
year in October.
0 Obligation/Submittal Deadline
Projects selected to receive STP and CMAQ funding must demonstrate the ability to obligate
programmed funds by the established obligation deadline. This criterion will be used for selecting
projects for funding, and for placement in a particular year of the TIP. It is the responsibility of the
implementing agency to ensure the deadlines can be met.
In order to ensure funds are obligated or transferred to FTA in a timely manner, the implementing
agency is required to deliver a complete funding obligation / FTA Transfer request package to
Caltrans Local Assistance by February I of the year the funds are listed in the TIP. Projects with
complete packages delivered by February I of the programmed year will have priority for available
OA, after ACA conversions that are included in the Obligation Plan. If the project is delivered after
February I of the programmed year, the funds will not be the highest priority for obligation in the
event of OA limitations, and will compete for limited OA with projects advanced from future years.
Funding for which an obligation/ FTA transfer request is submitted after the February I deadline will
lose its priority for OA, and be viewed as subject to reprogramming.
CT Metropolitan Transportation Commission 5 July 23, 2008
Regional Project Funding Delivery Policy MTC Resolution No. 3606
for STP and CMAOFunding Page 6of11 Revised July 23,2UD8
Important Tip: Once a federal fiscal year (October 1through September]O)has begun, and the
Obligation Plan for that year developed, the agency is committed to obligating/transferring the funds
by the required obligation deadline for that fiscal year. Funds that do not meet the obligation
deadline are subject tode-programming bvMTC.
Within the CMA administered programs, such asthe Local Streets and Roads Rehabilitation program,
the CMAs may adjust delivery, consistent with the program eligibility requirements, up until February
I of the programmed year, swapping funds to projects in order to utilize all of the
programming capacity. The substituted pnztscts)must still obligate the funds within the original
funding deadline.
For funds programmed through regional competitive programs, such asthe regional Transportation
for Livable Communities (TLC) program, orfor regional operations projects, such as511,orfor
planning activities, such as the CMA planning activities, the Commission has discretion to redirect
funds from delayed orfailed projects.
STP and CMAQ funds are subject to an transfer deadline ofApril 30of the fiscal year
the funds are programmed in the TIP. Implementing agencies are required to submit the completed
request for obligation or FTA transfer to Caltrans Local Assistance by February I of the fiscal year the
funds are programmed \nthe TIP, and receive anobligation/ FTA transfer ofthe funds bvApril 3Omf
the fiscal year programmed in the TIP. For example, projects programmed in FY 2008-09 of the TIP
have anobligation/FTA transfer request submittal deadline (to Caltrans) o[February 1,2OO9and an
obligation/FTA transfer deadline ofApril 3U,20O9. Projects programmed |nFY3OO9-1Ohave an
obligation request submittal deadline (to Caltrans) ofFebruary 1,2D1Oand anobUgation/FTA
transfer deadline ofApril 3O,2OU8. Noextensions will begranted bothe obligation deadline.
�
Submittal Deadline: February 1ofthe fiscal year programmed in the TIP. The Implementing
Agency is required to submit complete obligation/transfer package to Caltrans 8months
prior to the Obligation Deadline).
* Obligation Deadline: April 30 of the fiscal year programmed in the TIP. No extensions will be
granted to the obligation deadline.
February 1' Regional submittal deadline. Complete package submittals, and ACA conversion
requests for projects in the annual obligation plan received by April I of the fiscal year the funds
are programmed in the TIP will receive priority for obligations against available OA.
February 1—April 30 - Projects submitted during this timeframe are subject to
deprogramming. If OA is stUavaUable, these projects may receive OA if obligated by April 30. If
OA islimited, these projects will compete for OAwith projects advanced from future years una
first come -first serve basis, Projects with funds tobeadvanced from future years must request
the advance prior to April 30, in order to secure the funds within that federal fiscal year.
April 30- Regional obligation deadline. Funds not obligated (or transferred toFTA) bvApril 3O
of the fiscal year programmed |nthe TIP will bareturned toMTC for reprogramming. No
extensions ofthis deadline will begranted. Projects seeking advanced obligations against funds
from future years should request the advance prior to April 30 in order to secure the funds within
that federal fiscal year.
CJK I Metropolitan Transportation Commission 6 July 23, 2008
Regional Project Funding Delivery Policy MTC Resolution No. 3606
for STP and CMAQ Funding Page 7 of 11 Revised July 23, 2008,
The obligation deadline may not be extended. The funds must be obligated by the established
deadline or they will be de -programmed from the project and redirected by the Commission to a
project that can use the funds in a timely manner.
Note: Advance Construction Authorization does not satisfy the regional obligation deadline
requirement, except under certain circumstances such as when Caltrans uses ACA for state projects.
Important Tip: In some years OA for the region may be severely limited, especially toward the end
of the federal Authorization Act. When OA is limited, ACA conversions identified in the annual
obligation plan and submitted before the deadline of February I have priority, followed by other
projects in the annual obligation plan submitted before the deadline of February 1. Projects in the
obligation plan but submitted after February 1 may have OA (and thus the obligation of funds)
restricted and may have to wait until OA becomes available — either after May 1, when unused OA is
released from other regions, or in the following federal fiscal year when Congress approves additional
OA. Obligation requests submitted after the February I deadline have no priority for OA for that year.
Agencies with projects not in good standing with regards to the deadlines of this policy may have OA
restricted.
0 Program Supplement Agreement (PSA) Deadline
The implementing agency must execute and return the Program Supplement Agreement (PSA) to
Caltrans In accordance with Caltrans, Local Assistance procedures. The agency must contact Caltrans
if the PSA is not received from Caltrans within 60 days of the obligation. This requirement does not
apply to FTA transfers.
Agencies that do not execute and return the PSA to Caltrans within the required Caltrans deadline
will be unable to obtain future approvals for any projects, including obligation and payments, until all
PSAs for that agency, regardless of fund source, meet the PSA execution requirement. Funds for
projects that do not have an executed PSA within the required Caltrans deadline are subject to
deobligation by Caltrans.
0 Construction Advertisement / Award Deadline
For the Construction (CON) phase, the construction/equipment purchase contract must be advertised
within 6 months of obligation and awarded within 9 months of obligation. However, regardless of
the advertisement and award deadlines, agencies must still meet the invoicing deadline for
construction funds. Failure to advertise and award a contract in a timely manner could result in
missing the subsequent invoicing and reimbursement deadline, resulting in the loss of funding.
Agencies must submit the notice of award to Caltrans in accordance with Caltrans Local Assistance
procedures, with a copy also submitted to the applicable CMA. Agencies with projects that do not
meet these award deadlines will have future programming and OA restricted until their projects are
brought into compliance.
For FTA projects, funds must be approved/awarded in an FTA Grant within one federal fiscal year
following the federal fiscal year in which the funds were transferred to FTA.
Important Tip: Agencies may want to use the flexibility provided through Advance Construction
Authorization (ACA) if it will be difficult meeting the deadlines. Agencies may consider proceeding
with ACA and converting to a full obligation at time of award when project costs and schedules are
more defined or when the agency is ready to invoice.
1 I Metropolitan Transportation Commission 7 July 23, 2008
Regional Project Funding Delivery Policy MTC Resolution No. 3606
for STP and CMAQ Funding Page 8 of 11 Revised July 23, 2008,
~ Invoicing Deadline
Funds for each federally funded phase and for each federal program code must beinvoiced against
at least once every six months.
Funds for each federally funded (Environmental (EN\/ Engineering (PE)Final
Design (PS&E) and Right of Way (R1W) phase and for each federal program code within these
phases must be Invoiced against atleast once every six months following obligation. Funds that are
not invoiced at least once every 12 months are subject to de -obligation. There is no guarantee that
funds will be available tothe project once de -obligated.
Funds for the Construction (CON)phase, and for each federal program code within the construction
phase, must beinvoiced and reimbursed against atleast once within 12 months of the obligation,
and then invoiced at least once every 6 -months there after. Funds that are not invoiced and
reimbursed at least once every 12 months are subject to de -obligation by FHWA. There is no
guarantee that funds will beavailable tothe project once de-obUgated.
Daproject does not have eligible expenses within a6'monthperiod, the agency must provide
written explanation to Caltrans Local Assistance for that six-month period and submit an invoice as
soon as practicable to avoid missing the 12 -month invoicing and reimbursement deadline.
Agencies with projects that have not been invoiced against and reimbursed within a 13'nmndh
period, regardless of federal fund source, will have restricdons placed on future programming and
until the project isproperly invoiced. Funds that are not invoiced and reimbursed against atleast
once every 12months are subject bode-obligation bvFHVVA.
Important Tip: Bnaccordance with Caltrans procedures, federal funds must beinvoiced against for
each obligated phase and each federal program code at least once every six months. Funds that are
not invoiced and reimbursed at least once every 12 months are subject to de -obligation by FHWA.
There is no guarantee the funds will be available tothe project once de -obligated. Agencies that
prefer to submit one final billing rather than semi-annual progress billings can use ACA to proceed
with the project, then convert to a full obligatilon prior to project completion. ACA does not meet the
obligation deadline, but ACA conversions do receive priority in the annual obligation plan.
° Inactive Projects
Most projects can becompleted well within the state's deadline for funding liquidation or FHWA's ten-
year proceed -to -construction requirement. Yet it is viewed negatively by both FHNA and the
California Department ofFinance for projects to remain inactive for more than twelve months. Itis
expected that funds for completed phases will be invoiced immediately for the phase, and projects
will be closed out within six months of the final project invoice. Funds that are not invoiced and
reimbursed at least once every 12 months are subject to de -obligation by FHWA. There isno
guarantee the funds will beavailable tothe project once de-obUgated.
° Liquidation/ Reimbursement Deadline
Funds must be liquidated (fully expended,invoiced and within six years of obligation.
California Government Codes 16304.1 and 16304.3 places additional restrictions on the liquidation of
federal funds. Generally, federal funds must be liquidated (fully expended, invoiced and reimbursed)
CAM .1 Metropolitan Transportation Commission 8 July 23, 2008
Project Funding �� �C��u�nN�3�6
Regional-
for STP and CMAQ Funding Page 9of11 Revised July 23, 2008
within Gstate fiscal years following the fiscal year in which the funds were appropriated.Funds that
miss the state's liquidation/ reimbursement deadline will lose State Budget Authority and will be
de -obligated ifnot neap 'atedbvthe6tataLegia|abure,orevtended(fromavear) in
Cooperative Work Agreement (CVVA) with the California Department mfFinance. This requirement
does not apply toFTA transfers.
= Project Completion /Close -Out Deadline
Implementing Agencies must fully expend federal funds Vnaphase one year prior tothe estimated
completion date provided to Caltrans.
At the time of obligation, the implementing agency must provide Caltrans with an estimated
completion date for that project phase. Any unreimbursed federal funds remaining on the phase after
the estimated completion date has passed, is subject to project funding adjustments by FHWA.
Projects hennmpedydm,out within six months of final project invoice. Projects must
proceed`^'' ��years offederal authorization ofthe initial phase.
tfederally funded projects proceed to construction within 10 years of
u�
any phase oftheprojec± Furthermore, ifaproject iscanceled, orfails
proceed istruction in 10 years, FHWA will de -obligate any remaining funds, and the agency is
required to - �r`bunmydfunds. Ifaproject iscanceled asaresult ofthe environmental
process U' have tnrepay reimbursed costs for the environmental activities.
H' dafter the environmental process is complete, oraproject does not
.118years, the agency isrequired tmrepay all reimbursed federal funds.
Agencies w|tnprojects that have not been closed out within 0months cf final invoice will have future
programming a/ / until the project is closed out orbrought back hm good standing by
pruv ittenexplanation blCaltrans; Local Assistance, the applicable CMA and MTC.
-.s of Missed Deadlines.
It is the responsibility of the implementing agency to ensure the funds can beused within the established
regional and federal deadlines and that the provisions of the regional funding delivery policy, and
nther si- d federal requirements, can be met. It is also the responsibility of the implementing
nuously monitor the progress of the project against these regional, state and federal
lu, s and report any potential difficulties in meeting these deadlines to MTC, Caltrans and
the zounty CMA within a timely manner. MTC, Caltrans and the CMAs are available to assist
the implementing agencies in meeting the funding deadlines, and may be able to find solutions that avoid
the loss of funds.
Agencies that do not meet these funding deadlines risk the loss of federal funds. Tominimize such losses
to the region, and encourage timely project delivery, agencies that continue 0obedelivery-challenged
and/or have current projects that have missed the funding deadlines will have future obligations,
programming or requests for advancement of funds restricted until their projects are brought back into
good standing. Projects are selected to receive STP or CMAQ funding based on the implementing
agency's demonstrated ability to delivery the projects within the funding deadlines. An agency's proven
delivery record will be used for selecting projects for funding and placement in a particular year of the
TIP, and for receipt afOA.
CM I Metropolitan Transportation Commission 9 July z3,zn0o
Regional Project Funding Delivery Policy MTC Resolution No. 3606
for STP and CMAQ Funding Page 10 of 11 Revised July 23, 2008
Reaional Proiect Fundina Delivery Policv Intent
The intent of this regional funding delivery policy is to ensure implementing agencies do not lose any
funds due to missing a federal or state funding deadline, while providing maximum flexibility in delivering
transportation projects. It is also intended to assist the region in managing Obligation Authority, and in
meeting federal financial constraint requirements. MTC has purposefully established regional deadlines in
addition to state and federal funding deadlines to provide the opportunity for implementing agencies, the
CMAs, Caltrans, and MTC to solve potential project delivery issues and bring projects back on-line in
advance of losing funds due to a missed funding deadline. The policy is also intended to assist in project
delivery, and ensure funds are used in a timely manner.
Although the policy specifically addresses the regional STP and CMAQ funds managed by MTC, the state
and federal deadlines sited apply to all federal -aid funds administered by the state (with few exceptions
such as Congressionally mandated projects including Earmarks). Implementing agencies should pay
close attention to the deadlines of other state and federal funds on their projects so as not to miss any
other applicable funding deadlines.
This regional Project delivery policy was developed by the San Francisco Bay Area's Partnership, through
the Project Delivery Task Force of the Bay Area Partnership's Finance Working Group (FWG), consisting
of representatives of Caltrans, the county Congestion Management Agencies (CMAs), transit operators,
counties, and MTC staff.
CM Metropolitan Transportation Commission 10 July 23, 2008
Regional Project Funding Delivery Policy
for STP and CMAQ Funding Page 11 of 11
Milestone
Programming in TIP
Field Review (If applicable)
Pre -Draft Environmental
Document Submittal
(Non -Cat Ex)
Agency committed to
obligate funds by April 30
of the year listed in TIP
Within 12 months of
inclusion in TIP
12 months prior to
obligation of Right of Way
or Construction funds
Regional
MTC Resolution No. 3606
Revised July 23, 2008
of Missed Deadline
Deprogramming of funds and redirection
to other projects that can use the OA.
Restrictions on future programming,
obligations and OA until deadline is met.
Funds not identified In MTCs annual
MTC Annual Obligation Beginning of each federal Regional Obligation Plan do not receive priority for
Plan fiscal year OA and may need to wait until after May 1
to receive obligation/ transfer of funds....—
Disadvantaged Business
Enterprise (DBE) Goals
(If Applicable)
Obligation/ FTA Transfer
Request Submittal
Obligation/ Transfer to
FTA
Release of Unused OA
End of Federal Fiscal Year.
OA no Longer Available
Program Supplement
Agreement (PSA)
Construction
Advertisement
Construction Award
Invoicing &
Reimbursement
Liquidation
Project Close -Out
Start by January 1,
complete by February 1,
of year programmed in
TIP
February I of year
programmed in TIP
April 30 of year
programmed in TIP
May 1
August 30
60 days after receipt
from Caltrans
6 months after obligation
Deprogramming of funds and redirection
Regional to other projects that can use the OA if not
obligated by April 30. 1
Regional
Regional
Caltrans
Caltrans,
Federal
Caltrans
I. months after obligation Regional
,5 months after obligation Regional
Agency must invoice and
receive reimbursement at
least once every 6 to
12 -months following
obligation of funds
6 years after obligation
6 months after final
invoice
Caltrans,
Federal,
Regional
State of
California
Project looses priority for OA. Other
vroiects in region may be given OA.
Deprogramming of funds and redirection
to other projects that can use the OA.
Unused OA is made available for other
regions to access.
FHWA Obligation system shut down.
Unused OA at the end of the fiscal year is
taken for other projects. No provision that
the funds taken will be returned.
Restrictions on future programming,
obligations and OA until deadline is met.
De -obligation by Caltrans after 6 months.
Restrictions on future programming,
obligations and OA until deadline is met
Restrictions on future programming,
obligations and OA until deadline is met
Explanation in writing if funds not invoiced
in past 6 -month period. (Caltrans)
Deobligation if project inactive for 12
months. (FHWA)
Restrictions on future programming, OA
and obligations if agency has not invoiced
and received reimbursement at least once
every 12 -months after obligation. (MTQ_
Loss of State Budget Authority and de -
obligation by State of California
Explanation in writing. (Caltrans)
Restrictions on future programming,
obligations and OA. (MTC)
CT Metropolitan Transportation Commission 11 July 23, 2008
lvll%-, -- ruiluillig rlUjeL;L ijetiveryirrogram monitoring Page 1 of 3
cr-
Home Project Delivery / Program Monitoring
About MTC
News
Jobs & Contracts I. ANNUAL OBLIGATIONS
Meetings & Events 11. DIKRETIONA19Y FUNDING 9FPORT$
Get Involved Ill. BACKGROUND
IV. RrFGl0NAL PROJECT QF E...
Y PQJCY
Services
Library
Maps & Data Annual Obligations
Funding The following documents contain lists of projects within the MTC region that have received obligation of funds
• TIP by the Federal Highways Administration (FHWA) and the Federal Transit Administration (FTA) over the past
• RM 2 few years. Most, but not all of the funds, are subject to the SAFETEA, AB -1012 and MTC Resolution 3239 and
(PtTill & !T[P� Resolution 3606 deadline requirements for the obligation of funds.
• STP•CMAQ
• ARRA SAFETEA Obligations
• Project Df,,divery .)
Proguam Mrinitoiing a SAFETEA STPrCMAQ Obligations Summary (PDF)
FTA
rDA,'s S1 A * Annual Obligations FY 2008-09:
• I(Arastructi.ire hona o ST P, CMAQ Annual Obtigation Pran (PDF)
CMIA * Annual Obligations FY 2007-08:
• FMS o Annual Ugiag.-Q�d Federally OtLig,ed Proi�,,,cts FFY ?07--Q
ju -8 (PDF)
Raflinfing o STPICMAO Annual Obligation Plan (PDF)
o FHWA Obligated Funds (Word)
o STPIQMAQ Obligation -5—%W (PDF)
Links • Annual Obligations FY 2006-07:
• Annual Listino of Feclerallv Oblio,atecl Project* FFY-2..006-07 (PDF)
• $TP1Q.MAQ Annual Obligation Plan (PDF)
• CMAQ Projects Emission Reductions Calculations (Excel)
• FHWA Obligated Funds (Word)
• SMLMAQ Oblioations (PDF)
• Annual Obligations FY 2005-2006:
ci ATInksal J.i*.lJn'q ol FvdPra.LIy.Qt-)li9AI0 P19f!-qI$--FFY ?QQ5-06 (PDF)
• FHWA Obligated Funds (Word)
• STPICMAQ Obligations (PDF)
• Annual Obligations FY 2004.2005:
• FTA Obligated Funds (PDF)
• FHWA Obligated Funds (Word)
• STPICMAO Obligations (PDF)
• Annual Obligations FY 2003-2004:
• FTA OtijigatQd Funds (PDF)
• FHWA Obligated Funds (Word)
• STPICMAQ Obbgations (PDF)
TEA -21 Obligations
• Annual Obligations FY 2001-2002:
• STRCMAQ7EA Funds Obligated During FY 2001-012 (PDF)
• TEA 21 Earmarked and Discretionary Funds Obligated During FY 2001-02 (PDF)
• FTA Obiigated Funds (Excel)
• RiVA ObIgeited Funds (Word)
• Annual Obligations FY 2002-2003:
• FTA Obligated, Funds (Excel)
• FHWA Obligated Funds (Word)
EXHIBIT B
http://www.mtc.ca.gov/funding/delivery/index.htm 3/2/2009
eF
MTC -- Funding -- Project Delivery/Program Monitoring
o STP, CMAQr'TEA Obligations (PDF)
FHWA TEA -21 Annual Obligations
o FHWA Annual Obligations FFY 1997-1998 (Word)
o FHWA Annual Obligations FFY 1998-1999 (Word)
o FH..WA.Annual Obligations, FFY 1999-2000 (Word)
o FHWA Annual Obligations FFY 2000 2001 (Word)
o FHWA Annual Obligations FFY 2001 2002 (Word)
o FHWA-Annual Obligations FFY 2002 2003 (Word)
Discretionary Funding Reports
• FY2006-07 Discretionary Funding Report (PDF)
• FY2005-06 Discretionary Funding Report (PDF)
• FY2004-05 Discretionary Funding Report (PDF)
Includes revised FY2002-03 and FY2003-04 Reports
• Original FY2002-03 and FY2003-04 Reports
• STIP Year -End Reports (PDF)
o FY 1999-2000 STIP End of Year Delivery
o FY 2000-2001 STIP End of Year Delivery
o FY 2001 20Q2 STIP End of Year Delivery
o FY 2002.2003 STIP End of Year Delivery
o FY 2009•2004'5TIP End of Year Dolivory
o FY 2004-2005 STIP End of Year Delivery
o FY 2009 P006 STIP End of Year Delivery
o FY 2006 2007;";TIP End of Year Delivery
o FY 200? 2008 ;STIP End ot'Y"e ar Delivery
Background
Page 2 of 3
Under the Safe, Accountable, Flexible, Efficient Transportation Equity Act: A Legacy for Users (SAFETEA)
legislation, which was signed into law by President George W. Bush in August 2005, two of the major funding
programs, the Surface Transportation Program (STP) and Congestion Mitigation and Air Quality Improvement
Program (CMAQ) maintained the same flexibility as authorized under the previous legislation, Transportation
Equity Act for the 21 st Century (TEA -21). This flexibility allows STP and CMAQ funds to be spent on mass
transit, pedestrian and bicycle facilities, as well as on roads and highways. However, along with this funding,
come strict deadlines on the obligation and reimbursement of these funds. These delivery deadlines at the
federal, state and regional levels are outlined below:
Federal Requirements (SAFETEA)
STP, CMAQ, and FTA funds (among other programs) must be obligated within 4 years of apportionment.
Funds not obligated are lost to the state.
State Requirements (AB -1012)
Regional STP and CMAQ funds must be obligated within 3 years of apportionment. Funds not obligated are
lost to the region.
Regional Requirements (MTC Resolution No. 3606)
The Bay Area Partnership, through MTC Resolution No. 3606, has imposed additional regional requirements,
including obligation, award and invoicing deadlines, to expedite project delivery and ensure funds are not lost
to the region.
Project -Funding Delivery Policy (MTC Resolution No. 3606)
The STP and CMAQ Programs, as well as other federal funds, are subject to regional project delivery policies.
These policies are critical to ensure that the region is able to use its federally apportioned transportation
funding in a timely manner. By meeting delivery targets, the region is able to maximize its use of federal
funding on transportation projects. In addition, if the region is successful in meeting state -mandated delivery
deadlines, it may be rewarded with more transportation dollars.
State Legislation (AB -1012) established penalties for not delivering STP, CMAQ funded projects within certain
prescribed deadlines. MTC, working with its partners, has imposed its own deadlines to ensure funds are not
lost to the region. These delivery deadlines at the federal, state and regional levels are outlined below:
The region has established deadlines for funding in the Surface Transportation Program (STP) and Congestion
Mitigation and Air Quality Improvement (CMAQ) Program to ensure timely project delivery against state and
federal funding deadlines. This policy establishes rules for enforcing project deadlines for these funds during
the Safe, Accountable, Flexible, Efficient Transportation Equity Act: A Legacy for Users (SAFETEA).
Key elements of the proposed revised policy (MTC Resolution No, 3606) include:
http://www.mtc.ca.gov/funding/delivery/index.htm
EXHIBIT B
3/2/2009
ruilurtig -- rroject veirvery/rrogram monitoring
Page 3 of 3
• Obligation requests must be submitted to Caltrans Local Assistance by February 1 of the year the
funds are programmed in the federal Transportation Improvement Program (TIP).
• Funds must be obligated by April 30 of the year programmed in the TIP.
• The agency must execute and return the Program Supplement Agreement (PSR) to Caltrans within 60
days of receiving the PSA from Caltrans.
• Once obligated, funds must be invoiced against at least once every six months.
• For funds contracted out, a contract must be awarded within 9 months of obligation.
• Projects must be closed out within six months of final invoice.
Funds that do not meet these deadlines are subject to deprogramming by MTC, or deobligation by
Caltrans/FHWA. There is no guarantee the funds will be available once deprogrammed or deobligated.
In addition, implementing agencies that have projects that fail to meet the requirements of the regional project
'delivery policy, regardless of federal fund source, will have Obligation Authority (OA) limited for subsequent
projects and restrictions placed on future programming.
The intent of this regional delivery policy is to ensure implementing agencies do not lose any funds as a result
of missing a federal or state funding deadline, while providing maximum flexibility in delivering transportation
projects. MTC has purposefully established regional deadlines to provide the opportunity for implementing
agencies, the Bay Area Congestion Management Agencies (CMAs), Caltrans, and MTC to solve potential
problems in advance of losing funds due to a missed state or federal deadline.
Additional background information may be found at He ional Project Fundino Delivery Poles Supporting
Documentation (PDF)
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EXHIBIT B
http://www.mtc.ca.gov/funding/delivery/index.htm 3/Z2009