Title
Apply for U.S. Department of Transportation Reconnecting Communities and Neighborhoods Grant Opportunity for Federal Fiscal Year 2022-23 - Federal Bipartisan Infrastructure Law Funding (Ordinance S-50259)
Description
Request to retroactively authorize the City Manager, or his designee, to apply for, accept and, if awarded, enter into agreement(s) for disbursement of Federal funding from the U.S. Department of Transportation (USDOT) through the Federal Fiscal Year (FFY) 2022-23 Reconnecting Communities and Neighborhoods (RCN) Program grant opportunity. If awarded, the funding will be used to initiate a planning grant and/or a capital construction grant. Further request to authorize the City Treasurer to accept, and the City Controller to disburse, all funds related to this item. Funding for these grant opportunities is available through the Federal Bipartisan Infrastructure Law and the Inflation Reduction Act. The total grant funds applied for will not exceed $31 million, and the City's local match would not exceed $5.5 million for both grants.
Report
Summary
The RCN grant is a new funding program under the Bipartisan Infrastructure Law, which was signed into law on Nov. 15, 2021. The USDOT issued a Notice of Funding Opportunity on July 5, 2023. The RCN grant is a re-branded program in its second year which combined Reconnecting Communities Pilot and Neighborhood Access and Equity programs into a single funding opportunity for FFY 2022-23. Together, this combined program now known as RCN aims to fund projects that consider these specific goals and objectives:
- Prioritize disadvantaged communities;
- Aim to improve access to daily needs such as jobs, education, health care, food, and recreation;
- Foster equitable development and restoration; and
- Reconnect communities by removing, retrofitting, or mitigating highways or other transportation facilities that create barriers to community connectivity, including mobility, access or economic development.
The City intends to submit for two grants: a planning grant to study important connections within the Maryvale Village; and a capital construction grant to focus on connectivity and improvements 1) from the future Rio Reimagined Bicycle and Pedestrian Bridge, funded by the City’s FFY 2021-22 Rebuilding American Infrastructure with Sustainability and Equity (RAISE) grant award and 2) to future PHX Cultural Corridor project, funded by the City’s FFY 2022-23 RAISE grant award.
Planning Grant Application
The planning grant application will study important connections within the Maryvale Village, approximately bounded by: Camelback Road to the north, Encanto Boulevard to the south, 75th Avenue to the west, and 43rd Avenue to the east. The Reconnecting Maryvale project is estimated to cost up to $6 million, with no local match required, due to the proposed project boundary being located 100 percent within a disadvantaged community.
Capital Construction Grant Application
The capital construction grant will focus on connectivity from the future Rio Reimagined Bicycle and Pedestrian Bridge along the 3rd Street alignment to Jefferson Street, including improvements to Buckeye Road from Central Avenue to 7th Street, connecting to the future PHX Cultural Corridor. The capital construction project for the 3rd Street Connector from the Rio Salado to Jefferson Street and Buckeye Road is estimated up to $25 million, with a minimum local match requirement of 0-20 percent of the total project cost, due to the majority of the boundary (94.4 percent) being in a disadvantaged community.
The RCN grant submittal deadline was Sept. 28, 2023. Since internal selection of the specific grants was carefully considered, this impacted staff's ability to request authorization ahead of the grant submittal deadline.
Financial Impact
The estimated total costs for the projects are up to $6 million for the planning grant and up to $25 million for the capital construction grant. The maximum federal participation rate for the planning grant is 100 percent with a minimum local match of 0 percent of the total eligible project cost and the maximum federal participation rate for the capital construction grant is 80-100 percent with a minimum local match of 0-20 percent of the total eligible project cost. If awarded the planning grant, the federal match would not exceed $6 million and the City’s costs would be approximately $0 for the local match. If awarded the capital construction grant, the federal match would not exceed $20-25 million and the City’s costs would be approximately $0-5.5 million for the local match, if match is required.
Funding for the local match is available in the Street Transportation Department's Capital Improvement Program budget. Potential grant funding received is available through the Federal Bipartisan Infrastructure Law, from USDOT through the FFY 2022-23 RCN grant opportunity.
Location
Planning Grant
75th to 43rd avenues, Encanto Boulevard to Camelback Road
Capital Construction Grant
3rd Street from the Rio Salado to Jefferson Street; and Buckeye Road from Central Avenue to 7th Street
Council Districts: 4, 5, 7 and 8
Department
Responsible Department
This item is submitted by Deputy City Managers Alan Stephenson and Mario Paniagua, and the Street Transportation Department.