Consideration and Approval of Purchase with Grant Funds:  Accept proposal from Parsons-Brinckerhoff for services to develop the FMPO (Flagstaff Metropolitan Planning Organization) Transportation Benefit Cost Analysis (BCA) tool at a cost not to exceed $60,000.

Employing a benefit cost analyis recognizes that funding is constrained and requires well-informed and economically prudent investment decisions.  Many transportation projects are estimated to cost in excess of $20 million, some in excess of $50 million. A benefit cost analysis can assist with the planning of these facilities, such as advisability of changes to increase benefits or lower costs; the timing of project construction at a point when levels of development will be high enough to achieve sufficient benefits; and partnerships whereby prospective agencies can assess benefits that accrue to them, thereby justifying the partnership.

Subsidiary Decisions Points:   A benefit cost analysis tool will aid in the evaluation and prioritization of transportation projects, comparison of alternative improvements, and help to meet anticipated grant application requirements.This activity is in the approved FMPO Work Program and represented in the City budget. Project 2013-07 scope of work was developed with input from technical staff and the FMPO Executive Board.  It was placed out to bid by the City on behalf of the FMPO.  Four proposals were received and reviewed by a committee comprised of two individuals from the City, one from NAIPTA and one from the FMPO.

Cost for the services will not exceed $56,400 in FMPO STP grant funds and $3,600 in FMPO local general funds to meet grant match requirements.  The FMPO receives federal funding for two purposes: planning and construction. All funds are passed through the Arizona Department of Transportation.  Virtually all funds require matching local dollars or in-kind match at 6% or 20% rate depending on fund category.  Planning dollars support basic FMPO operations and some planning activities.  Construction dollars are occasionally transferred for use in planning activities, as they are in this case.

Repair, replace, and maintain infrastructure (streets & utilities) - maintenance and capital dollars typically come from the same sources.  Thorough analysis and strategic prioritization and timing of major capital projects assists in spending all funds more effectively.

Retain, expand, and diversify economic base - benefit cost analysis will add to the understanding of transportation's impact on the economy.  Economic development is one of several criteria used to evaluate transportation projects.

Effective governance - adding benefit cost analysis to the decision-making toolbox can help make decision more effective.

No.

1.  Approve the award to Parsons-Brinckerhoff - work will proceed on schedule.  Recommended
2.  Remand the decision to the FMPO for further evaluation of the proposals - work will be delayed with potential disruption to FY 2014 work program elements such as the update to the FMPO Regional Transportation Plan.
3.  Remand the decision to the FMPO Executive Board for reconsideration of their work program - potential program delays and implications for re-programming of grant funds.

Flagstaff Metropolitan Planning Organization is a federally mandated entity charged with regional transportation planning and hosted by the City of Flagstaff.  FMPO produces a regional transportation plan and an annual work program to assist in the implementation of that plan. The FMPO Executive Board has asked for benefit cost analysis of different transportation projects to better understand their value. 

The Transportation Benefit Cost Analysis (BCA) tool will equip FMPO staff to analyze projects across modes (e.g., transit vs. highways) and across geographies (e.g., urban vs. rural).  FMPO staff intends to use the tool to evaluate all projects under consideration in the regional transportation plan and to include the BCA with other criteria (e.g., environmental impacts, social impacts) in ranking and scheduling of projects.

As a result of the development and implementation of the Transportation BCA tool, the public should enjoy better informed decisions regarding transportation improvements.

Inform - the BCA results will take systematic inputs and place them in a standardized analysis making them more accessible to the public.

1. Approve the award to Parsons-Brinckerhoff - work will proceed on schedule. Recommended
2. Remand the decision to the FMPO for further evaluation of the proposals - work will be delayed with potential disruption to FY 2014 work program elements such as the update to the FMPO Regional Transportation Plan.
3. Remand the decision to the FMPO Executive Board for reconsideration of their work program - potential program delays and implications for re-programming of grant funds.

Approved by CC 02/05/2013 - EAB