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BACKGROUND The inaugural One Bay Area Grant program (OBAG 1) was adopted by the Metropolitan Transportation Commission (MTC) in 2012 to guide the use of $827 million in federal funds over a five-year period from 2012 through 2017. The OBAG program allows flexibility in investing in transportation categories such as transportation for livable communities, bicycle and pedestrian improvements, local streets and road (LSR) preservation, planning activities, safe route to school (SR2S), and priority conservation areas. In order to secure the funding, it was required that the City Council adopt a resolution authorizing the filing of an application for OBAG-LSR program funding, committing the necessary non-federal fund match, with a statement assuring completion of the project. Consequently, on June 18, 2013, the City Council adopted Resolution No.13-631, authorizing the filing of an application for federal OBAG-LSR and committing the necessary non-federal fund match to complete this project ($238,000). On February 16, 2017, staff received approval from the Department of Transportation to proceed with the construction of this project with $832,000 available in grand funds. DISCUSSION This project consists of resurfacing approximately 550,000 square feet of roadway with cold in-place recycle (CIR) treatment and asphalt concrete overlay. There are two roadway sections included under this project. The first section is along Valley Avenue between Bernal Avenue and Hopyard Road; the second section is on Hopyard Road between Black Avenue and Del Valle Parkway. The roadway resurfacing also includes rehabilitating the existing asphalt pavement section with CIR treatment, isolated full-depth pavement repair, pavement milling, installation of traffic detector loops, striping, and adjusting existing appurtenances to grade. The existing pavement of Valley Avenue and sections of Hopyard Road are in poor condition and require either total reconstruction, including a complete removal and replacement of the asphalt concrete layer along with stabilizing the existing base material, or pavement rehabilitation. Total reconstruction is a very costly and lengthy process which creates a major impact to traffic and residents. The CIR treatment process has been evaluated and selected as a cost-saving alternative treatment in-lieu of total reconstruction to minimize traffic impact. "Going Green" is another benefit of CIR treatment. It recycles resources instead of removing and replacing them (approximately 11,000 tons of in-place aggregate and asphalt are reused and renewed), and a reduces greenhouse gases through less construction traffic, leading to a decrease in energy expenditure and emissions. The CIR process also meets the OBAG's goal, which supports California's Climate Law, SB 375, requiring a Sustainable Communities Strategy, which integrates land use and transportation to reduce greenhouse gas emissions. This CIR treatment process has been used nationwide and is approved by Caltrans, the Federal Highway Administration, and other major agencies. The CIR process includes pulverizing (milling) the top 4 inches of the existing pavement, mixing the pavement with asphalt binder/cement agents, grading and compacting by paving machine, and applying a fog seal. After completion of the CIR process, a new Page 2 of 3