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BACKGROUND The American Recovery and Reinvestment Act of 2009 was signed by President Obama on February 17, 2009, to stimulate the national economy. The ARRA funding for Local Street and Road (LS &R) System Preservation projects is divided into "Regional ARRA Funding" and "State ARRA Funding." The City of Pleasanton received $1,588,000 from Regional ARRA Funding and $370,000 from State ARRA Funding. These ARRA fundings were divided into the following three projects: 1) The subject project, Overlay of Various City Streets, CIP #095014, utilized the Regional ARRA Funding of $1,588,000. After receiving the bid for this project, it was estimated that $1,216,711 from Regional ARRA Funding would be utilized for the total cost of this project, including construction contract, contingency, and construction services and management costs. Since the total cost is less than the Regional funds, the City of Pleasanton is eligible to receive $371,289 categorized as ARRA "cost savings" on another qualifying Local Streets and Road Preservation project. 2) Santa Rita Road Pavement Rehabilitation, CIP No. 105023, utilized Regional ARRA "Cost Savings" of $371,289 as described above. This project is also complete and ready for acceptance by the City Council. 3) Bernal Avenue Pavement Rehabilitation, CIP No. 095026, utilized the State ARRA Funding. This project was completed and accepted by the City Council on January 4, 2011. The total reimbursement amount of $370,000 has been received. On March 3, 2009, the City Council adopted a resolution authorizing the application for ARRA 2009 Tier 1 funding for this project. On June 3, 2009, approval to proceed with the construction of this project was received from the Department of Transportation. On August 18, 2009, City Council awarded a construction contract to Gallagher & Burk, Inc. for a contract amount of $979,749 for the Overlay of Various City Streets (ARRA) project (CIP No. 095014). The construction of this project began in October 2009 but was temporarily suspended from construction due to unsuitable weather and unfavorable atmospheric ternperature for night paving of open - graded asphalt concrete. The construction was resumed in June 2010 and has since been completed and is ready for acceptance. Approximately 570,000 square feet of the following three roadway sections received a new layer of open - graded asphalt concrete or conventional asphaltic concrete: 1) Santa Rita Road between Mohr Avenue and Valley Avenue; 2) Stoneridge Drive between West Las Positas Boulevard and Santa Rita Road; and 3) Stoneridge Drive between Foothill Road and Stoneridge Mall Road. These three eligible federal -aid street routes were chosen for the subject project pavement rehabilitation because roadway conditions warranted repair and met the requirements for ARRA funding. During construction it was determined that the conventional asphalt concrete would be the better course of asphalt overlay on Stoneridge Drive between Foothill Road and Page 2 of 3