Title
Apply for U.S. Department of Transportation Bridge Investment Program Grant Opportunity for Federal Fiscal Years 2022-23 and 2023-24 - Federal Bipartisan Infrastructure Law Funding (Ordinance S-50773)
Description
Request to retroactively authorize the City Manager, or his designee, to apply for, accept and, if awarded, enter into agreements for disbursement of Federal funding from the U.S. Department of Transportation (USDOT) through the Federal Fiscal Years (FFYs) 2022-23 and 2023-24 Bridge Investment Program (BIP) grant opportunity. If awarded, the funding will be used to replace the bridge over the Grand Canal at 40th and Van Buren streets. Further request to authorize the City Treasurer to accept, and the City Controller to disburse, all funds related to this item. Funding for this grant opportunity is available through the Federal Bipartisan Infrastructure Law. The total grant funds applied for will not exceed $26 million, and the City’s local match would not exceed $5,023,042.
Report
Summary
On Dec. 20, 2023, USDOT issued a Notice of Funding Opportunity for $9.62 billion in FFYs 2022-23 through 2025-26 under their BIP grant program for planning and bridge capital projects. While $9.62 billion is available for FFYs 2022-23 through 2025-26, municipalities can only apply for a portion of this funding for FFYs 2022-23 and 2023-24 at this time.
Newly established by the Bipartisan Infrastructure Law, the BIP grant program offers an opportunity to leverage City funds for often cost-prohibitive bridge replacement, rehabilitation, preservation, and protection projects that improve safety, efficiency, and reliability of the movement of people and freight over bridges. The BIP funding is intended to improve the condition of bridges that are in poor condition, are in fair condition and at risk of falling into poor condition within the next three years, do not meet current geometric design standards, or cannot meet the load and traffic requirements typical of the regional transportation network.
Excluding the Arizona Department of Transportation, the City of Phoenix is one of two municipal agencies in the region that currently manages their own bridge inventory program. The bridge group in the Street Transportation Department has conducted technical studies on several bridges and identified them for either rehabilitation or reconstruction. The funding of these types of capital projects can put a large strain on any Capital Improvement Program. However, anticipating funds from future grant opportunities, the City has initiated a handful of project assessment studies to determine cost and need for a number of high-priority bridge projects.
The bridge identified as the highest priority for replacement is located at 40th and Van Buren streets over the Grand Canal. A feasibility assessment was conducted and 30 percent design completed in July 2020. Anticipated scope of work includes: completion of design plans; National Environmental Policy Act (NEPA) clearance; replacement of the bridge; upgrading traffic signals to include active transportation features; and adding Americans with Disabilities Act accommodations. At the time of the study, the cost for replacement was about $5.2 million. However, with material shortages, labor costs, and inflationary increases since 2020, the newly estimated total project cost is approximately $26 million with anticipated completion in 2028.
The FFYs 2022-23 and 2023-24 BIP grant submittal deadline was March 19, 2024.
Financial Impact
The estimated total cost for the project is approximately $25,115,209. The maximum federal participation rate is 80 percent, with a minimum local match of 20 percent of the total eligible project cost. If awarded, the federal match would not exceed $20,092,167 (80 percent), and the City’s cost would be approximately $5,023,042 (20 percent) for the local match.
Funding for the local match is available in the Street Transportation Department's Capital Improvement Program budget. Potential grant funding received is available through the Federal Bipartisan Infrastructure Law from USDOT through the FFYs 2022-23 and 2023-24 BIP grant opportunity.
Location
40th and Van Buren streets, over the Grand Canal
Council District: 8
Department
Responsible Department
This item is submitted by Deputy City Manager Alan Stephenson and the Street Transportation Department.