Title
AZ State Match Advantage for Rural Transportation Fund Program Call for Projects Federal Fiscal Year 2022-23 (Ordinance S-49547)
Description
Request to authorize the City Manager, or his designee, to retroactively apply for, accept, disburse and if awarded, enter into agreements for Fiscal Year 2022-23 transportation funding through the Arizona Department of Transportation for AZ State Match Advantage for Rural Transportation Fund 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. Additionally, request to authorize the City Treasurer to accept, and the City Controller to disburse, all funds related to this item. The total grant funds applied for will not exceed $3.4 million.
Report
Summary
Numerous new federal discretionary grant programs were created with the Bipartisan Infrastructure Law (BIL). The AZ State Match Advantage for Rural Transportation (AZ SMART) Fund Program was established by the Arizona State Legislature in 2022 to assist eligible cities, towns, counties, and the Arizona Department of Transportation (ADOT) competing for federal discretionary surface transportation grants. The funds are administered through ADOT and all awards must be approved by the Arizona State Board. Although the program reads Rural in the title, the City has confirmed that it is eligible for this funding opportunity under the City or towns greater than 10,000 in population. In addition, the program allows previously awarded discretionary grants under the BIL to apply as long as the federal grant agreement has not been executed. Recently, the AZ SMART program received $50 million in state shared revenue for Fiscal Year 2022-23. The City is applying for the funding specific to cities and towns with a population of 10,000 persons or more, which accounts for $10 million of the $50 million in funding.
The City of Phoenix was recently awarded $25 million through the Federal Fiscal Year (FFY) 2021-22 Rebuilding American Infrastructure with Sustainability and Equity (RAISE) 2022 cycle to design and build a bicycle and pedestrian bridge over the Rio Salado: Rio Reimagined 3rd Street Bike/Pedestrian Bridge. The City committed to a local match of $9,573,861 to the total project cost estimated at $34,573,861. Under the AZ SMART Fund Program, the City could request additional state-shared revenue funds or non-federal funds to supplement the local match already committed to this project.
The Street Transportation Department submitted an application on Feb. 24, 2023, requesting for up to $3.4 million under the AZ SMART Fund Program.
Financial Impact
If the City were to be awarded the amount requested up to $3.4 million, it would reduce the amount of estimated local match already committed on this project from $9,573,861 to no less than $6,173,861. Committed local funds are available in the Street Transportation Department's Capital Improvement Program.
Concurrence/Previous Council Action
The City Council approved application and acceptance of FFY 2021-22 RAISE grant funds on March 23, 2022.
Location
Council Districts: 7 and 8
Department
Responsible Department
This item is submitted by Deputy City Manager Alan Stephenson and the Street Transportation Department.