Title
Northwest Extension Phase II Funding, Design and Construction 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, design, and construction agreement with Valley Metro Rail (VMR) for the Northwest Extension Phase II (NWEII) project for an additional 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.
THIS ITEM IS FOR CONSENT ACTION.
Report
Summary
The NWEII is a 1.6-mile light rail project extending west from the current system terminus at 19th and Dunlap avenues. The extension will run west on 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.
The project includes three new stations at the following locations:
- Near Dunlap and 25th avenues.
- South end of the Rose Mofford Sports Complex.
- An expanded multi-modal transit center and park-n-ride at the terminus.
See Attachments A and B for visuals of the project which provide an overall representation of the NWEII project and end-of-line station and transit center.
On Oct. 16, 2019, City Council approved an amendment to the funding 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 (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
The extension will run on 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.