You are on page 1of 4

STAFF REPORT

SUBJECT: American Recovery & Reinvestment Act (Stimulus) Funding

MEETING DATE: November 19, 2009 AGENDA ITEM: 9

STAFF CONTACT: Sarkes Khachek and Brittany Odermann

RECOMMENDATION:

Receive a report on the status of roadway and transit ARRA (stimulus) funding in Santa Barbara
County and Caltrans’ concerns about statewide expenditures of obligated funds.

SUMMARY

Over the last several months SBCAG staff provided reports that summarize the obligation status
of American Recovery and Reinvestment Act (ARRA) funded roadway and transit projects in
Santa Barbara County. Recently, Caltrans expressed concern over the status of projects
beyond obligation. This concern was initiated by a federal review tracking statewide
expenditures of obligated funds. While California has done a comparable job to the rest of the
country in obligating funding, only 0.2% of the funds obligated in California have been
expended. The concern is this will weaken California’s bid to receive stimulus funding
reallocated from other states that don’t meet obligation deadlines and may affect perceptions in
Congress about the true need for roadway funding in California when SAFETEA-LU
reauthorization, including return-to-state formulas, begin to be discussed in earnest next year.
This is an informational item and additional status report to highlight the continued progress of
ARRA projects and economic stimulus in Santa Barbara County. At their November meeting,
TTAC members will be discussing what agencies can do to speed up the expenditure of funds
and discuss any problems they are encountering with getting ARRA funds spent.

DISCUSSION:

ARRA Status Report


Earlier this year the board programmed our region’s share of federal stimulus funding for
projects including $20 million in roadway funding and $8.5 million in transit capital funding.
Initially it was important to track the obligation status of our stimulus funds closely since the
state and federal ARRA legislation includes strict timely use of funds requirements and the
funds are subject to lapse if these requirements are not met. The SBCAG Board adopted an
obligation deadline of October 15th internal to the county to protect the region from losing any
stimulus funding due to unforeseen delays or problems with project delivery. Last month the
progress report demonstrated that with the exception of one ARRA TE project, all local agencies
met that deadline. The City of Lompoc’s Alan Hancock Bike Path replaced a previously
programmed ARRA TE project and therefore was given additional time to fully obligate. The
bike path project is on track to meet the obligation deadline of December 15th, established by
the State. Caltrans has notified SBCAG staff that the 95% design constructability review for the
Cold Spring project was completed in August and project design was completed in October.
The project is on schedule to be authorized in November and put out to bid before Thanksgiving
thus meeting the federal ARRA obligation deadline.

The progress report produced by SBCAG staff only showed which agencies have obligated
roadway and transit ARRA funding in Santa Barbara County. Caltrans recently held a
teleconference to discuss obligation of remaining balances of Recovery Act funds for roadway
projects, reporting requirements, and project delivery. This discussion was focused on roadway
stimulus funding and did not cover any ARRA transit funding topics. The Federal Government is
tracking actual expenditures or federal reimbursements to local agencies, as a proxy for jobs
being created, and using this as a sign of the success of the program as an economic stimulus.
The ultimate goal of the ARRA funding, of course, is to jump start economic recovery through
job creation. Caltrans management in Sacramento is concerned that though regions are making
good progress toward the obligation deadline, there has been little activity in expending stimulus
funding. They are concerned the Federal government is beginning to notice, as are other states.
There is a potential, they believe, that the rest of the nation may oppose California receiving
reallocated stimulus funding from other states because so little of the obligated funding in
California has been spent. There is also a concern that this opposition may bleed over to the
reauthorization of SAFETEA-LU and give the rest of the country leverage to adjust formulas for
returning federal gas tax funding to the states so that California’s amount is reduced.

Attachment 1 shows the status of ARRA funded projects statewide. The report shows that as of
September 30, 2009, 82% of the funding apportioned to the regions has been obligated, of
which only 0.2% of funding has been expended. In order to monitor continued project activity in
our county, a revised report is presented this month based on information received from
Caltrans Local Assistance, tracking the status of ARRA funded projects though the federal
process from obligation to actual expenditures made. Based on the report, all local projects
funded with non-ARRA TE roadway funding have obligated the associated ARRA funding.
Obligation is the first step recognized by FHWA in the federal process providing a contractual
commitment of federal funds to a specific project. Once a project is obligated the project
sponsor can finalize the bid package, advertise and award a contract. Local agencies are in
various stages of getting their projects out to bid and awarding contracts. Caltrans has asked
that SBCAG, and other Regional Planning Agencies, encourage local agency project sponsors
to continue with award of ARRA funded projects and begin invoicing against those obligated
funds to improve the percentage of total expenditures statewide. It should be noted that the
deadline for ARRA roadway fund expenditure as stated in the legislation is September 30, 2015.

COMMITTEE REVIEW:

TTAC will receive a status report at their November 17 special meeting.

RECOMMENDATION:

Receive a report on the status of roadway and transit ARRA (stimulus) funding in Santa Barbara
County and Caltrans’ concerns about statewide expenditures of obligated funds.

ATTACHMENTS

1. ARRA Project Progress Report Statewide


2. ARRA Project Progress in Santa Barbara County
ATTACHMENT 1 Status of Recovery Act Obligation-Award-Expenditure
As of September 30, 2009

No. of Recovery Act


% Apportionment % Apportionment No. of Projects Total Federal % Apportionment
Region Funds Apportioned Funds Obligated1 Projects Funds Awarded2 Obligation Plan
Obligated Awarded Awarded Expenditure3 Expended
Obligated Submitted4
Metropolitan Transportation Commission $320,886,705 $274,844,422 85.7% 136 $61,604,706 19.2% 63 $1,622,986 0.5% Yes
Sacramento Area Council of Governments $72,180,036 $49,495,553 68.6% 33 $25,619,468 35.5% 15 $849,332 1.2% Yes
El Dorado County Transportation Commission $4,924,290 $4,517,937 91.7% 5 $2,056,481 41.8% 3 $0 0.0% Yes
Placer County Transportation Commission $10,383,239 $9,583,295 92.3% 9 $3,620,230 34.9% 5 $0 0.0% Yes
Tahoe Regional Planning Agency $2,423,968 $1,800,000 74.3% 1 $0 0.0% 0 $0 0.0% No

Southern California Associaton of Governments Region

Los Angeles County Metropolitan Transportation Authority $449,898,038 $419,595,144 93.3% 178 $181,490,710 40.3% 28 $1,373,306 0.3% Yes
San Bernardino County Transportation Commission $80,931,585 $78,996,032 97.6% 1 $78,996,032 97.6% 1 $0 0.0% No
Riverside County Transportation Commission $72,266,627 $56,165,452 77.7% 6 $1,225,234 1.7% 1 $0 0.0% Yes
Orange County Transportation Commission $134,429,460 $104,074,144 77.4% 48 $1,518,376 1.1% 2 $0 0.0% Yes
Ventura County Transportation Commission $36,053,907 $34,126,186 94.7% 21 $6,341,186 17.6% 6 $0 0.0% Yes
Imperial County Transportation Commission $7,096,417 $7,078,053 99.7% 15 $0 0.0% 0 $0 0.0% No

Association of Monterrey Bay Area Governments Region


Transportation Agency for Monterey County $19,688,996 $9,084,809 46.1% 13 $5,882,919 29.9% 6 $0 0.0% Yes

Santa Cruz County Regional Transportation Commission $12,088,240 $5,793,875 47.9% 9 $5,295,369 43.8% 7 $0 0.0% Yes
San Benito County Council of Governments $2,527,904 $850,000 33.6% 1 $0 0.0% 0 $0 0.0% Yes
Alpine County Transportation Commission $163,359 $0 0.0% 0 $0 0.0% 0 $0 0.0% Yes
Amador County Transportation Commission $1,347,232 $567,295 42.1% 1 $0 0.0% 0 $0 0.0% Yes
Butte County Association of Governments $9,662,954 $9,373,962 97.0% 5 $2,778,962 28.8% 3 $0 0.0% No
Calaveras County Transportation Commission $1,353,508 $0 0.0% 0 $0 0.0% 0 $0 0.0% No
Colusa County Transportation Commission $872,211 $272,000 31.2% 2 $0 0.0% 0 $0 0.0% No
Del Norte County Transportation Commission $1,305,780 $748,134 57.3% 5 $522,059 40.0% 4 $0 0.0% Yes
Council of Fresno County Governments $37,048,627 $33,430,005 90.2% 22 $550,866 1.5% 2 $0 0.0% Yes
Glenn County Transportation Commission $1,249,119 $707,749 56.7% 2 $0 0.0% 0 $0 0.0% No
Humboldt County Transportation Commission $5,904,653 $2,687,850 45.5% 6 $587,000 9.9% 1 $0 0.0% Yes
Inyo County Transportation Commission $1,393,523 $1,058,000 75.9% 2 $806,007 57.8% 2 $0 0.0% No
Kern County Council of Governments $31,267,199 $17,052,328 54.5% 16 $4,996,000 16.0% 3 $0 0.0% Yes
Kings County Regional Planning Agency $6,357,326 $1,260,000 19.8% 2 $0 0.0% 0 $0 0.0% Yes
Lake County/City Area Planning Council $2,508,899 $2,425,960 96.7% 3 $0 0.0% 0 $0 0.0% Yes
Lassen County Transportation Commission $1,566,078 $777,240 49.6% 1 $733,633 46.8% 1 $0 0.0% Yes
Madera County Transportation Commission $5,470,596 $4,106,000 75.1% 3 $0 0.0% 0 $0 0.0% Yes
Mariposa County Transportation Commission $578,881 $262,759 45.4% 2 $0 0.0% 0 $0 0.0% Yes
Mendocino Council of Governments $3,820,989 $2,828,000 74.0% 3 $0 0.0% 0 $0 0.0% Yes
Merced County Association of Governments $10,190,875 $3,297,401 32.4% 6 $0 0.0% 0 $0 0.0% Yes
Modoc County Transportation Commission $607,615 $0 0.0% 0 $0 0.0% 0 $0 0.0% Yes
Mono County Transportation Commission $698,560 $20,000 2.9% 1 $0 0.0% 0 $0 0.0% No
Nevada County Transportation Commission $3,886,086 $1,589,189 40.9% 7 $0 0.0% 0 $0 0.0% Yes
Plumas County Transportation Commission $820,222 $355,490 43.3% 1 $29,620 3.6% 1 $0 0.0% Yes
San Diego Association of Governments $131,431,969 $113,248,091 86.2% 2 $0 0.0% 0 $0 0.0% Yes
San Joaquin County Council of Governments $26,455,290 $20,951,331 79.2% 13 $7,054,640 26.7% 2 $0 0.0% Yes
San Luis Obispo Council of Governments $11,676,740 $2,566,000 22.0% 2 $0 0.0% 0 $0 0.0% No
Santa Barbara County Association of Governments $20,023,185 $12,095,217 60.4% 14 $3,081,425 15.4% 4 $0 0.0% Yes

Shasta County Regional Transportation Planning Agency $7,477,934 $4,329,017 57.9% 4 $2,955,740 39.5% 2 $0 0.0% Yes
Sierra County Transportation Commission $220,622 $93,000 42.2% 1 $0 0.0% 0 $0 0.0% No
Siskiyou County Transportation Commission $2,123,513 $1,547,499 72.9% 2 $937,107 44.1% 1 $0 0.0% Yes
Stanislaus Council of Governments $20,994,824 $682,661 3.3% 2 $0 0.0% 0 $0 0.0% Yes
Tehama County Transportation Commission $2,477,061 $1,190,000 48.0% 2 $0 0.0% 0 $0 0.0% Yes
Trinity County Transportation Commission $574,770 $556,248 96.8% 1 $0 0.0% 0 $0 0.0% Yes
Tulare County Association of Governments $17,587,573 $6,733,000 38.3% 3 $0 0.0% 0 $0 0.0% Yes
Tuolumne County/Cities Area Planning Council $2,395,514 $2,146,000 89.6% 1 $0 0.0% 0 $0 0.0% No
TOTAL $1,597,292,700 $1,304,962,328 81.7% 613 $398,683,770 25.0% 163 $3,845,624 0.2%

1
Funds Obligated includes FTA transfer amounts
2
Funds Awarded does not include FTA transfer amounts. Funds awarded data is from 1585 report submitted
by local agencies through LAODIS.
3
Total Federal Expenditure data is from CALTRANS accounting database.
4
Plan due to Caltrans Local Assistance November 1, 2009
Caltrans
Page 1 of 1
ATTACHMENT 2
Santa Barbara County American Recovery and Reinvestment Act (ARRA) Allocation and 1511 Certification Summary
November 17 TTAC Meeting

ARRA ROADWAY PROJECTS


Remaining
Number of Projects Remaining Funds to be Expended
Jurisdiction Funds Apportioned Funds Obligated Funds to be
Obligated Obligated Funds
Expended
City of Carpinteria $596,535 $596,535 1 $0 $0 $596,535
City of Goleta $1,270,736 $1,270,736 1 $0 $0 $1,270,736
City of Lompoc* $2,363,661 $1,795,625 2 $568,036 $0 $2,363,661
City of Santa Barbara $3,774,796 $3,774,796 3 $0 $0 $3,774,796
City of Santa Maria $4,099,816 $4,099,816 5 $0 $0 $4,099,816
City of Solvang $143,988 $143,988 1 $0 $0 $143,988
County of Santa Barbara $6,273,654 $6,273,654 8 $0 $0 $6,273,654
Caltrans - Cold Spring Bridge Project $1,500,000 $0 0 $1,500,000 $0 $1,500,000

Totals for Roadway Projects $20,023,186 $17,955,150 21 $2,068,036 $0 $20,023,186

ARRA Roadway Project Notes:


- Information from Caltrans Local Assistance as of November 11, 2009.
* Includes $568,036 in ARRA-TE funding
- The Cities of Guadalupe and Buellton exchanged their allocation of ARRA with The County and City of Santa Maria for a non-federal funding source.
- The City of Solvang exchanged a portion of their ARRA allocation with The County for a non-federal funding source.
- 1511 Certification approved by Caltrans for the Cold Spring Bridge Project on October 8th.

ARRA TRANSIT PROJECTS


Remaining
Number of Projects Remaining Funds to be Expended
Transit Operator Funds Apportioned Funds Obligated Funds to be
Obligated Obligated Funds
Expended
FTA 5307 ARRA
City of Lompoc Transit (COLT) $1,342,268 $1,342,268 6 $0 $0 $1,342,268
Santa Barbara Metropolitan Transit District (SBMTD) $4,314,864 $4,314,864 3 $0 $0 $4,314,864
Santa Maria Area Transit (SMAT) $2,548,629 $2,548,629 3 $0 $0 $2,548,629

FTA 5311 ARRA


Guadalupe Flyer $279,311 $279,311 1 $0 $0 $279,311

Totals for Roadway Projects $8,485,072 $8,485,072 13 $0 $0 $8,485,072

ARRA Transit Project Notes:


- Information from FTA ARRA Grants Digest webpage as of August 26, 2009.
- SMAT Apportioned Amount includes $120,689 for Guadalupe Flyer Bus Purchase.
- Guadalupe ARRA 5311 application approved by Caltrans Mass Transit/FTA and pending contract completion.