Consideration and Approval of Payment:  Payment to the Flagstaff Metropolitan Planning Organization (FMPO) in the amount of $114,000 for drainage work on Plaza Way associated with the Arizona Department of Transportation's (ADOT) Plaza Way Right Turn Lane Project.

The FMPO requests payment of $114,000 from the City of Flagstaff for drainage improvements associated with ADOT's Plaza Way Right Turn Lane Project.  This item is being presented to Council for consideration as the payment is over the $50,000 threshold and requires approval by a majority of Council.

With respect to the request for payment, staff has determined that the $114,000 payment could be made from the Road Repair & Street Safety Tax's fund balance without affecting the required minimum balance. 

The city lost a $370,000 programmed allocation from the FMPO's Transportation Improvements Program (TIP) for LED street lights intended to implement the Dark Skies Applied Research Project (see Background section and Attachments below).  The FMPO has removed the funds from the TIP to support general administration.

This item is being presented to Council for consideration as the payment is over the $50,000 threshold and requires approval by a majority of Council.

Council Goal: Transportation and Other Public Infrastructure.

Team Flagstaff Strategic Plan: Work in partnership to enhance a safe and livable community; Foster a safe, equitable and accessible community.

There has not been previous Council action on this item.  However, the FMPO's Executive Board took action at their May 25, 2017 meeting to amend the FMPO's Transportation Improvement Program (TIP) to reprogram $114,000 from dark sky compliant street lights to the ADOT street project with the condition that the City reimburse the FMPO within 2 years (see Attachments below).

Options for Council to consider may include:

1.  Make payment to the FMPO out of RR&SS Tax proceeds.
2.  Make payment to the FMPO from another funding source.
3.  Do not make payment to the FMPO.  

In the Spring of 2016, ADOT requested that the city fund $114,000 for drainage improvements on an adjoining city street (Plaza Way) that was outside of the ADOT jurisdictional limits to improve drainage in the vicinity, including run-off from the Safeway parking lot.  At the time, Stormwater, Public Works and Capital Improvements staff declined to participate as the funding was not available without impacting programmed projects.  In fall/winter 2016, ADOT received bids that came in over budget and in April 2017 applied to the FMPO for the funding.

The FMPO's Technical Advisory Committee (TAC) reviewed ADOT' s request and recommended a TIP amendment that ADOT's request for $114,000 be funded by reducing the $370,000 amount that had been programmed for LED street lights intended to implement the Dark Skies Applied Research Project. 

The FMPO's Executive Board amended the TIP to eliminate Dark Skies Applied Research Project funding and to reprogram $114,000 in order to transfer funds to ADOT. The Executive Board also sought to require that the City reimburse the FMPO within a 2-year time frame, although it does not have the authority to do so.  At this time there doesn't appear to be any Surface Transportation Block Grant (STBG) funds provided by the Federal Highway Administration programmed by FMPO for capital projects in the 5yr Transportation Improvement Program.

The $114,000 was transferred from the FMPO to ADOT on or about September 12, 2018.

The FMPO initially requested payment from the city's Finance staff.  This prompted an internal discussion on how best to manage the payment.  The FMPO provided documentation of the Executive Board's decision and concurrence from City Manager Josh Copley.  However, staff recognized that only the City Council has the authority to make this decision and is forwarding the request by FMPO to the City Council for consideration and formal action. 

Possible funding options for the payment include the General Fund, Highway User Revenue Fund (HURF), Road Repair and Street Safety Tax (RR&SS), Stormwater Fund and the Transportation Tax.  If Council decides to make payment to the FMPO, staff believes that the RR&SS fund is best suited to absorb this unplanned/unbudgeted expense.

The city overlay and street improvement program, funded by HURF and RR&SS addresses pavement and drainage improvements on city roadways and compliance with the Americans with Disabilities Act.  The ADOT Plaza Way Right Turn Lane Project provided these improvements on Plaza Way.

There has been no community involvement associated with this item.