Title
South Central Extension/Downtown Hub Project Funding Agreement Amendment
Description
This report requests the Transportation, Infrastructure and Innovation Subcommittee recommend approval to City Council to approve an amendment to the current funding agreement with Valley Metro Rail (VMR) for the South Central Extension/Downtown Hub project for an amount not-to-exceed $350 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.
THIS ITEM IS FOR CONSENT ACTION.
Report
Summary
The South Central Extension/Downtown Hub is a 5.5-mile light rail project extending south from Jefferson Street to Baseline Road along Central Avenue. The project also includes the creation of a transfer hub in downtown Phoenix. The project includes nine new stations and two park-n-rides (one located at the existing Ed Pastor Transit Center on Central Avenue and Broadway Road, and another at the end-of-line on the northwest corner of Central Avenue and Baseline Road).
Attachments A and B provide a graphical representation of the South Central Extension/Downtown Hub project and the end-of-line park-and-ride, which can be expanded into a transit center in the future if necessary.
On Oct. 16, 2019, City Council approved an amendment to the funding agreement in the amount of $159 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 (FFGA), 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 past project completion. Therefore, it is expected that Phoenix will need to advance funds due to the timing of annual CIG allocations.
Concurrence/Previous Council Action
This item is scheduled to be heard at the Aug. 27, 2020 Citizen Transportation Commission meeting.
Location
Central Avenue from Jefferson Street to Baseline Road
Council Districts: 7 and 8.
Department
Responsible Department
This item is submitted by Deputy City Manager Mario Paniagua and the Public Transit Department.