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<br />REPORT <br /> <br />6.38 <br />Page 1 <br /> <br />To the Honorable Mayor and City Council <br />From Ute C" tYI~na ,er <br /> <br />October 8, 2007 <br /> <br />SUBJECT <br />Approval of Master Agreement for Federal-aid to transportation projects and approval of <br />Program Supplement Agreement No. NOO3 for grant funding of the 2006-2007 Street <br />Overlay Project. <br /> <br />RECOMMENDATION <br />1. Approve, by resolution, the Master Agreement (Administering Agency-State <br />Agreement for Federal-Aid Projects) No. 04-5029R for Federal/State funding of local <br />transportation projects; and authorize the City Manager to execute same and <br />amendments thereto. <br /> <br />2. Approve, by resolution, Program Supplement Agreement No. N003 which provides <br />specific funding (Surface Transportation Program) for a specific project (the 2006- <br />2007 Street Overlay Project); and authorize the City Engineer to execute same, <br />subsequent Program Supplement Agreements, and amendments thereto. <br /> <br />BACKGROUND <br />The United States Congress enacted the Intermodal Surface Transportation Efficiency <br />Act (ISTEA) in 1991 and subsequent Transportation Authorization bills to fund various <br />transportation programs, including the Federal Surface Transportation Program (STP). <br />The State of California enacted legislation by which certain federal-aid funds are made <br />available to qualified public entities for use on local transportation related projects. The <br />Master Agreement governs the general terms and conditions for federal-aid funds <br />distributed by the State to the City. The Program Supplement Agreement exists in <br />addition to the Master Agreement and governs the disbursement of specific funds for a <br />specific project. <br /> <br />The City, as "Administering Agency", is required to enter into the Master Agreement and <br />Program Supplement Agreement before receipt of grant funds. Council approved a <br />previous version of the Master Agreement in August, 2002 (Resolution No. 14463). The <br />revision incorporates recent changes in regulations and policies, and will supersede the <br />earlier version. Program Supplement Agreement No. N003 specifically provides for <br />STP grant funding for the 2006-2007 Street Overlay Project. <br /> <br />On July 24, 2006, Council authorized (Resolution No. 14722) the City's application to <br />the Metropolitan Transportation Commission (MTC) for STP grant funding, made <br />available by the Transportation Equity Act for the 21st Century (TEA 21) and the TEA 21 <br />Restoration Act Program, to assist local jurisdictions with roadway pavement <br />improvement projects. <br /> <br />The following roadway segments were selected and approved by MTC to receive STP <br />grant funding for the repair and resurfacing of roadway pavement: <br />