Title
Project Agreement with Maricopa Association of Governments to Accept and Disburse Regional Transportation Funds (Ordinance S-48019)
Description
Request to authorize the City Manager, or his designee, to enter into a Project Agreement with the Maricopa Association of Governments under the Arterial Life Cycle Program. Further request an exemption from the indemnification prohibition set forth in the Phoenix City Code section 42-18 for a governmental entity pursuant to Phoenix City Code section 42-20 if funding is received. Additionally request to authorize the City Treasurer to accept, and the City Controller to disburse, all funds related to this item.
Report
Summary
In November 2004, the voters of Maricopa County approved a transportation excise tax for implementing the Regional Transportation Plan. The Maricopa Association of Governments (MAG) is required by state law to adopt a program that provides for life cycle management for the funding and programming of the Arterial Life Cycle Program (ALCP).
On Sept. 7, 2021, the Street Transportation Department submitted an updated project overview of a future arterial capacity improvement project on Happy Valley Road from 67th to 35th avenues to add the design phase funding to the agreement. The project scope involves completing full roadway improvements along Happy Valley Road from 67th to 35th avenues consistent with the planned roadway classification for a modified arterial roadway with three lanes in each direction, medians, curb, gutter, sidewalk, bike lanes and streetlights where they do not exist today. Happy Valley Road is a regional east/west arterial street in the northern city limits that has largely been built by development. This project will complete the ultimate roadway cross section for Happy Valley Road that had not previously been improved by development. Funds programmed through the ALCP are administered by the Arizona Department of Transportation (ADOT) through its Regional Arterial Road Fund (RARF). Execution of this Project Agreement to receive RARF funds and Surface Transportation Block Grant Program (STBGP) funds disbursed by ADOT through MAG will allow the City to request reimbursements through MAG for all project related costs.
MAG has programmed $1,315,373 in the ALCP for Fiscal Year (FY) 2022 using RARF funding for the design phase and $5,452,627 for FY 2023 and 2024 for the construction phase with STBGP funding for a future arterial capacity improvement on this project. The City is a self-certified agency, which allows the City to complete the required procedures for project development in a more efficient, cost-effective and timely manner.
Financial Impact
The MAG ALCP requires member agencies to participate in 30 percent or $564,571 to leverage 70 percent or $1,315,000 in regional RARF funding for design. Currently, construction is only partially funded with $5,453,000 in STBGP funds and an additional $6,446,000 is unfunded at this time due to an ALCP program budget deficit. The City intends to pursue additional regional dollars to fund the preliminary construction cost estimated at $15.4 million when regional funding becomes available through the current Regional Transportation Plan or the newly planned Regional Transportation Plan sales tax initiative, Proposition 400 Extension. Funding for the design phase of this project is available in the Street Transportation Department's Capital Improvement Program.
Concurrence/Previous Council Action
The City Council approved a Project Agreement with MAG for the pre-design and environmental phases associated with this project (Ordinance S-46149) on Nov. 6, 2019.
Department
Responsible Department
This item is submitted by Deputy City Manager Mario Paniagua and the Street Transportation Department.