Title
Northwest Extension Phase II Funding, Design and Construction Agreement Amendment (Ordinance S-46944)
Description
Request to authorize the City Manager, or his designee, to approve an amendment to the current funding, design, and construction agreement with Valley Metro Rail (VMR) for the Northwest Extension Phase II (NWEII) Project to add an amount not-to-exceed $200 million to fund the remainder of the project costs. Federal Capital Investment Grant (CIG) funded costs will be reimbursed by the Federal Transit Administration (FTA) over several years, potentially beyond the construction schedule.
Report
Summary
The NWEII Project is a 1.6-mile light rail project extending west from the current system terminus at 19th Avenue and Dunlap Avenue. The extension will run west along Dunlap Avenue to 25th Avenue, then north to Mountain View Road, and then west across Interstate 17, via an elevated structure over the freeway, to its terminus adjacent to Metrocenter Mall.
This Project includes three new stations at the following locations:
- Near the intersection of Dunlap Avenue and 25th Avenue;
- On the south end of the Rose Mofford Sports Complex; and
- At the terminus (with an expanded multi-modal transit center and park-and-ride).
See Attachments A and B for visuals of the project, which provide an overall representation of the NWEII Project and the end-of-line station and transit center.
On Oct. 16, 2019, City Council approved an amendment to the funding, design, and construction agreement in the amount of $79.4 million for design and construction services for the project. The Council Report explained: “Because the schedule for the disbursement of federal funding is based on a reimbursement process and is expected to exceed the project construction schedule, a future amendment to the agreement will be required to advance the necessary additional funding to VMR for project completion. The future amendment will be requested after the City receives authorization for the financing needed to cover costs that will be later reimbursed through federal CIG funding.”
Although the FTA approves the total CIG funding when executing the Full Funding Grant Agreement, CIG New Starts grant funds are typically allocated over multiple years due to the federal budget process. This may result in the receipt of some grant funds after project completion. Due to this timing of annual CIG allocations, it is expected that Phoenix will need to advance funds.
Financial Impact
The amount of this amendment is $200 million and funds are available in the Public Transit Department Capital Improvement Program current year budget using FTA funds and bond funds.
Concurrence/Previous Council Action
- The Citizens Transportation Commission voted 9-1 to recommend Transportation, Infrastructure and Innovation Subcommittee and City Council approval of this item at the meeting on Aug. 27, 2020.
- The Transportation, Infrastructure and Innovation Subcommittee voted 4-0 to recommend Council approval of this item at the meeting on Sept. 2, 2020.
Location
The extension will run west along Dunlap Avenue to 25th Avenue, then north to Mountain View Road, and then west across Interstate 17, via an elevated structure over the freeway, to its terminus adjacent to Metrocenter Mall.
Council Districts: 1, 3 and 5.
Department
Responsible Department
This item is submitted by Deputy City Manager Mario Paniagua and the Public Transit Department.