On February 17, 2009, President Obama signed into law the American Recovery and Reinvestment Act of 2009 (ARRA). As one of its components, the ARRA provides appropriations of Federal funds to the Montana Department of Commerce to be allocated to cities and towns for local infrastructure projects. The 2009 Legislature passed House Bill 645 (HB 645), the Montana Reinvestment Act, which provides for $10 million in infrastructure grants for Montana cities and towns. The City of Billings project selected to receive the ARRA funding is W.O. 04-12, Reconstruction of Alkali Creek Road. Funds available for this project under HB 645 total $1,650,688.

The Council may:

• Approve and accept HB 645 Local Government Infrastructure Grant.
• Decline the funding.
 

Funding for the local share of the Alkali Creek Road project is available from storm and arterial funds. The following is a breakdown of estimated costs and funding sources:
   

Sources of Funds:	FY 2009	FY 2010	TOTAL
HB 645 Grant (ARRA)		1,650,688	1,650,688
Storm Fund	40,470	119,530	160,000
Arterial Fund	313,654	629,782	943,436
TOTAL	354,124	2,400,000	2,754,124
Uses of Funds:	FY 2009	FY 2010	TOTAL
Engineering - Design	354,124		354,124
Construction Administration		255,000	255,000
Construction		2,145,000	2,145,000
TOTAL	354,124	2,400,000	2,754,124

Staff recommends that Council authorize the Mayor to execute the contract with the Montana Department of Commerce and certify acceptance of $1,650,688 of Montana House Bill 645 Grant Funds.