1. TRANSPORTATION PROGRAMS Re-Allocation of Unobligated ARRA MPO/Local Funds – Policy Recommendation Eileen Yazzie Regional Council December 9, 2009

2. Copyright © 2009 TRANSPORTATION PROGRAMSAmerican Recovery and Reinvestment Act of 2009 To Be Discussed 1. ARRA Monthly Status Report – November 30 th Project Milestone Review 2. Programming Factors 3. Recommended Policy & Analysis 4. Discussion and Possible Action

3. Copyright © 2009 TRANSPORTATION PROGRAMSAmerican Recovery and Reinvestment Act of 2009 ARRA Monthly Status Report – November 30 th Milestone Review Agenda Item #5G Agenda Item #5G Local Projects – p. 4 Local Projects – p. 4 ‘Obligate’ column – projected obligation dates ‘Obligate’ column – projected obligation dates 3 Projects have already obligated 3 Projects have already obligated Majority are projected to obligate December 2009 Majority are projected to obligate December 2009 All Local projects projected to ‘Obligate’ prior to February 2010. Federal Deadline: March 2, 2010

4. Copyright © 2009 TRANSPORTATION PROGRAMSAmerican Recovery and Reinvestment Act of 2009 Projected Unobligated ARRA MPO/Local Funds MonthAction/Deadline December 2009 - January 2010 Remaining Local ARRA Projects Obligate March 2, 2010 Federal deadline for obligation of ARRA Transportation funds January - April 2010 Local ARRA Projects: Advertise and Bid March - April 2010 Majority of Local ARRA Project Bids/Contracts Awarded - Project Savings known September 2010 Federal deadline for obligation of ARRA Transportation funds due to lower costs

5. Copyright © 2009 TRANSPORTATION PROGRAMSAmerican Recovery and Reinvestment Act of 2009 Projected Unobligated MPO/Local ARRA Funds & Policy Recommendation

6. Copyright © 2009 TRANSPORTATION PROGRAMSAmerican Recovery and Reinvestment Act of 2009 Programming Factors Considered ARRA Reporting, Tracking, and Oversight => Less is better ARRA Reporting, Tracking, and Oversight => Less is better Project Readiness Project Readiness Initial Policy to program at Local level based on population Initial Policy to program at Local level based on population

7. Copyright © 2009 TRANSPORTATION PROGRAMSAmerican Recovery and Reinvestment Act of 2009 Any unobligated ARRA Local funds due to either projects not obligating or project cost savings, are to be programmed at the local discretion first, and may remain ARRA funds or may be exchanged with ADOT for ADOT Surface Transportation Program (STP) funds. Any unobligated ARRA Local funds due to either projects not obligating or project cost savings, are to be programmed at the local discretion first, and may remain ARRA funds or may be exchanged with ADOT for ADOT Surface Transportation Program (STP) funds. ADOT would then use the ARRA funds on highway projects in the MAG region and ADOT will transfer an equivalent amount of ADOT STP funds that can be used by MAG members on local federally funded projects. ADOT would then use the ARRA funds on highway projects in the MAG region and ADOT will transfer an equivalent amount of ADOT STP funds that can be used by MAG members on local federally funded projects. Recommendation

8. Copyright © 2009 TRANSPORTATION PROGRAMSAmerican Recovery and Reinvestment Act of 2009 If applicable, the local agency may use project cost savings from their own original ARRA allocation to lower the 30% local cost share on projects programmed under the 70/30 cost share policy. If applicable, the local agency may use project cost savings from their own original ARRA allocation to lower the 30% local cost share on projects programmed under the 70/30 cost share policy. Recommendation Cont.

9. Copyright © 2009 TRANSPORTATION PROGRAMSAmerican Recovery and Reinvestment Act of 2009Recommendation 1.Project Savings => Local jurisdiction programming priority (project readiness) May switch from ARRA to STP funding with ADOT May switch from ARRA to STP funding with ADOT Remember: Less is better per tracking, reporting and oversight Remember: Less is better per tracking, reporting and oversight ADOT programs ARRA on MAG Regional Project ADOT programs ARRA on MAG Regional Project Local agency can use ARRA to lower the 30% local cost share (RTP policy) Local agency can use ARRA to lower the 30% local cost share (RTP policy)

10. Copyright © 2009 TRANSPORTATION PROGRAMSAmerican Recovery and Reinvestment Act of 2009 Pros & Cons to Recommendation Pro: Allows a flexible, local solution that would simplify ARRA savings Pro: Allows a flexible, local solution that would simplify ARRA savings Pro: Deadline for obligating STP funds – September 2010 Pro: Deadline for obligating STP funds – September 2010 Con: STP requires a 5.7% match Con: STP requires a 5.7% match Ex: $500K projects needs $28,500 Local Ex: $500K projects needs $28,500 Local Projects would still need to go through Local Governments and need to be in process

11. Copyright © 2009 TRANSPORTATION PROGRAMSAmerican Recovery and Reinvestment Act of 2009 Technical Programming Areas - to be Resolved Beginning at TRC in December: 1. Establishing a threshold related to programming ARRA/STP project savings on local projects Ex: Local Ready Project - Total Costs: $500K. Cost savings from ARRA is $75,000 of STP. 15% of project costs, is it worth it? 2. A Regional Project Prioritized list For cost savings that do not meet the threshold that is established, the amount of funds are returned to the region to be programmed. For cost savings that do not meet the threshold that is established, the amount of funds are returned to the region to be programmed.

12. Copyright © 2009 TRANSPORTATION PROGRAMSAmerican Recovery and Reinvestment Act of 2009 Technical Programming Areas - to be Resolved Beginning at TRC in December: 3. Local projects funded with STP – These projects would need to obligate by September 2010; project readiness factor

13. Copyright © 2009 TRANSPORTATION PROGRAMSAmerican Recovery and Reinvestment Act of 2009 On the Agenda for Action Any unobligated ARRA Local funds due to either projects not obligating or project cost savings, are to be programmed at the local discretion first, and may remain ARRA funds or may be exchanged with ADOT for ADOT Surface Transportation Program (STP) funds. ADOT would then use the ARRA funds on highway projects in the MAG region and ADOT will transfer an equivalent amount of ADOT STP funds that can be used by MAG members on local federally funded projects. If applicable, the local agency may use project cost savings from their own original ARRA allocation to lower the 30% local cost share on projects programmed under the 70/30 cost share policy. Eileen Yazzie