Title
Request Retroactive Authorization to Apply for Federal Highway Administration Congestion Relief Program Grant Opportunity for Federal Fiscal Years 2021-22 through 2023-24 - Federal Bipartisan Infrastructure Law Funding (Ordinance S-50875)
Description
Request to retroactively authorize the City Manager, or his designee, to apply for, accept and, if awarded, enter into agreements for Federal funding from the Federal Highway Administration (FHWA) through the Federal Fiscal Years (FFYs) 2021-22 through 2023-24 Congestion Relief Program grant opportunity and enter into an agreement with Via Transportation, Inc. to provide services detailed in the grant application. 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 $12,944,400.
Report
Summary
On Feb. 21, 2024, FHWA issued a Notice of Funding Availability for projects to reduce highway congestion, reduce economic and environmental costs associated with that congestion, including transportation emissions, and optimize existing highway capacity and usage of highway and transit systems. This federal program funds operational improvement projects that increase the effectiveness of existing transportation system capacity, improve and integrate travel modes, and give travelers sufficient motivation to use those modes.
The FFYs 2021-22 through 2023-24 Congestion Relief Program grant submittal deadline was April 22, 2024.
This request is for the Public Transit Department to partner with mobility service provider, Via Transportation, Inc., on a grant application to pilot Project EASE (Effective Access Solutions for Easing Congestion). This is a three-pronged congestion mitigation initiative designed to provide greater options for passengers to utilize public transit. Project EASE includes implementing three microtransit service zones within the City over a three-year period to increase coverage of the public transit system; provide commuter bus improvements that complement the new microtransit zones; and integrate new and existing microtransit services into the region’s transit software application for trip planning, real-time tracking, and fare payment. These initiatives are intended to provide greater access to public transit by facilitating an easy passenger experience, thereby reducing roadway congestion.
The grant submission includes a scalable request to allow FHWA an opportunity to partially award based on funding availability.
Procurement Information
In accordance with City of Phoenix Administrative Regulation 3.10, standard competition for the partnership with Via Transportation, Inc. was waived as a result of an approved determination memo, based on special circumstances without competition due to time restrictions. The FHWA’s Notice of Funding Availability for this grant opportunity was issued Feb. 22, 2024, and applications were due April 22, 2024, allowing no time to conduct a competitive procurement.
Contract Term
The contract with Via Transportation, Inc. for this pilot project will align to the awarded grant funding for microtransit services in an amount not to exceed $9,670,000, with a term not to exceed five years from grant award.
Financial Impact
The estimated total cost for the project is $16,180,500. 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 $12,944,400 (80 percent) and the City’s costs would be approximately $3,236,100 (20 percent) for the local match. The grant application includes a second option for a scaled back project with a total cost of $13,450,500. If awarded the scaled back project, the Federal match would not exceed $10,760,400 (80 percent) and the City’s costs would be approximately $2,690,100 (20 percent) for the local match.
Funding for the local match is available in the Public Transit Department’s budget. Potential grant funding received is available through the Federal Bipartisan Infrastructure Law, from the FHWA through the FFYs 2021-22 through 2023-24 Congestion Relief Program grant opportunity.
Department
Responsible Department
This item is submitted by Deputy City Manager Mario Paniagua and the Public Transit Department.