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BACKGROUND In 2012, the Metropolitan Transportation Commission (MTC) began a coordinated call for projects under the One Bay Area Grant Program, which consists of two Federal Grant Programs: the Surface Transportation Program (STP) and the Congestion Management Air Quality (CMAQ). The City received $832,000 from OBAG (Cycle I) funds to rehabilitate Valley Avenue and Hopyard Road under project CIP No. 155026. Construction of this project was completed in 2017. On November 18, 2015, MTC adopted the funding and policy for the second round of the One Bay Area Grant Program, known as OBAG 2 or OBAG (Cycle II). OBAG 2 funding is projected to total $916 million to fund projects from 2017-18 through 2021- 2022. The OBAG 2 program is divided into a regional program ($530 million) managed by MTC and a county program ($386 million) managed by the nine Bay Area Congestion Management Agencies (CMAs). In order to secure the funding, it was required that 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. On June 20, 2017, City Council adopted Resolution No.17-950, authorizing the filing of an application for federal OBAG-LSR. On March 20, 2020, staff received approval from the CA Department of Transportation to proceed with the construction of this project with $1,095,000 available in grant funds, which is an increase from the original amount of$720,000 in grant funds. DISCUSSION This project consists of resurfacing approximately 930,000 square feet of roadway surface on the streets listed in the table below. Depending on the condition of the street, one of the four following pavement rehabilitation methods is used. (The column on the right of the table indicates the treatment that will be used on each street section.) See Attachment 2 for a map of the locations. Overlay (OL): This construction method involves cold-plane milling (grinding) the edges of the existing pavement and placing a new surface course of 1.75 inches of new hot mix asphalt (HMA) over the top of the existing pavement. Overlay with Fabric (OL/F): This construction method involves grinding the edges of the existing pavement and placing a layer of paving fabric on the pavement prior to applying a new surface course of 1.75 inches of new asphalt concrete over the top of the existing pavement. The paving fabric is needed when the existing pavement has cracking caused by heating and cool cycles. The paving fabric "bridges" these cracks that are only in the surface layer. Without the fabric, the cracks would quickly propagate to the surface of the new pavement, known as "reflective" cracking. Pavement Milling and Overlay (Mill/OL): This construction method involves the removal of the existing asphalt concrete surface layer of the entire street surface by cold-plane milling, then applying of 1.75 inches HMA over the street surface. The milling or grinding of the entire street surface is necessary on streets where performing an OL would raise the crown and increase the cross slopes, particularly along the parking lane, to an unsatisfactory level. Page 2 of 4