Title
Advance Construct Intergovernmental Agreement with Maricopa Association of Governments and Arizona Department of Transportation for Regional Transportation Funds (Ordinance S-49470)
Description
Request to authorize the City Manager, or his designee, to enter into an Advance Construct Intergovernmental Agreement with the Maricopa Association of Governments (MAG) and the Arizona Department of Transportation (ADOT) for regional funding through the Arterial Life Cycle Program. Further request an exception pursuant to Phoenix City Code section 42-20(B), to indemnify, defend, and hold harmless MAG and ADOT for: (a) acts arising out of, or contributed to, by reasons of any alleged act, omission, professional error, fault, mistake or negligence of the City, its employees, officers, directors, agents, representatives, or contractors, their employees, agents or representatives. Additionally request to authorize the City Treasurer to accept, and the City Controller to disburse, all funds related to this item. The estimated financial impact to the City is $12.5 million.
Report
Summary
In November 2004, the voters of Maricopa County approved a transportation excise tax for implementing the Regional Transportation Plan (RTP). The Maricopa Association of Governments (MAG) is required by state law to adopt a program that provides for life cycle management for the funding and programming of the Arterial Life Cycle Program (ALCP).
The City of Phoenix, in coordination with MAG and the Arizona Department of Transportation (ADOT) is planning a regional roadway improvement along Happy Valley Road between 67th and 35th avenues. The project scope involves completing full roadway improvements consistent with the planned roadway classification for a modified arterial roadway with three lanes in each direction, medians, curb, gutter, sidewalk, bike lanes and streetlights where they do not exist today. Happy Valley Road is a regional east/west arterial street in the northern city limits that has largely been built by development. This project will complete the ultimate roadway cross section for Happy Valley Road that had not previously been improved by development. Funds programmed through the ALCP are administered by ADOT through the City's self certification, which allows the City to complete the required procedures for project development in a more efficient, cost effective, and timely manner.
This stretch of roadway was a casualty of the 2008 recession when regional funds were rebalanced in response to a national recession. Happy Valley Road between 67th and 35th avenues is the last Phoenix RTP project that was shelved in response to reduced regional transportation revenues. The City has taken the initiative to fulfill the commitment made to Phoenix/Arizona voters by moving the project forward in hopes of securing additional federal dollars currently estimated at $12.5 million. The project is in final design and right-of-way acquisition, and will go to construction in fall 2023. The City of Phoenix is committed to this regional transportation corridor project and plans to complete construction in 2025. Entering into an Advance Construct Intergovernmental Agreement (IGA) will allow Phoenix to potentially get reimbursed up to 70 percent of the total project cost if or when additional regional funds become available. MAG currently has $6.595 million programmed for design, right-of-way acquisition, and construction in the ALCP.
The City continues to pursue any and all federal funding opportunities to close the gap in project costs, estimated at $12.5 million.
Financial Impact
Traditionally, the MAG ALCP can contribute up to 70 percent of the total project cost and requires member agencies to participate with 30 percent of the total project cost. The current total project cost (design, right-of-way acquisition, and construction) is estimated at $27,304,829. Using this estimate, the region could contribute up to $19,113,830 if the project was fully funded. Currently, this project is only partially funded at $6.595 million. Through the Advance Construct IGA, the City will advance the capital costs to build the project sooner, and the shortfall estimated at $12.5 million would be eligible for reimbursement if additional regional federal dollars become available in the future. Local funding to advance this project is available in the Street Transportation Department's Capital Improvement Program.
Concurrence/Previous Council Action
The City Council approved:
- A Project Agreement with MAG for the pre-design and environmental phases associated with this project (Ordinance S-46149) on Nov. 6, 2019; and
- A Project Agreement with MAG for the design phase of this project (Ordinance S-48019) on Oct. 27, 2021.
Department
Responsible Department
This item is submitted by Deputy City Manager Alan Stephenson and the Street Transportation Department.