Arizona State Transportation Board Annual Report On The Statewide Transportation Acceleration Needs Account (STAN) Submitted To The Honorable Janice K. Brewer Governor, State of Arizona The Honorable Russell Pearce President, Arizona State Senate The Honorable Andy Tobin Speaker, Arizona House of Representatives July 1, 2012 Annual Report Statewide Transportation Acceleration Needs Account (STAN) Background Laws 2006, Chapter 345, Section 9 established the Statewide Transportation Acceleration Needs (STAN) Account in order to provide funding for critically needed highway construction projects throughout Arizona. Paragraph (L) requires that on or before July 1 of each year, the State transportation board shall submit a report to the Governor, President of the Senate, and Speaker of the House on its activities pursuant to Section 9. It is for this reason that this report has been prepared. FUNDING Laws 2006, Chapter 344, Section 48 provided initial funding for the STAN Account in the form of a $245,000,000 appropriation from the State General Fund, and a $62,000,000 appropriation from the State Highway Fund. Laws 2006, Chapter 345, Section 9 allows the State Transportation Board to invest these funds with the State Treasurer, and allows all monies earned on the investment of these funds to be deposited to the STAN Account. Laws 2007, Chapter 267 established two new sub-accounts within the STAN Account, namely the Reimbursement of Interest Costs sub-account, and the Roads of Regional Significance Congestion Mitigation sub-account. Laws 2007, Chapter 267 appropriated $10,000,000 from the STAN Account into each sub-account. Laws 2007, Chapter 255 appropriated $62,000,000 from the State Highway Fund to the STAN Account. Laws 2008, Chapter 53 later transferred $42,000,000 from the STAN Account to the Department of Public Safety. Laws 2009, First Special Session, Chapter 1 transferred $104,000,000 of State General Funds originally appropriated to the STAN Account back to the State General Fund. In addition, $10,000,000 has been reserved in STAN funding pursuant to Laws 2009, Third Special Session, Chapter 7, Section 43. A STAN Restoration Account has been established and $10,000,000 was transferred to this account in August, 2010. To date, although a project has been identified for the funds, no expenditures have been from this account. As of June 30, 2012, all appropriations had been fully deposited to, or transferred from the STAN Account. To date, the STAN Account and its sub-accounts have earned $33,929,148 in interest. In addition, the STAN Account has disbursed $219,329,725 in project costs, leaving an ending balance in the STAN Account as of June 30, 2012 of $37,963,463. 1 Annual Report Statewide Transportation Acceleration Needs Account (STAN) Chapter 345, Section 9 also directs that all funds in the STAN Account will be allocated to certain counties and groups of counties based on population thresholds. As written, funding in the STAN Account is to be allocated as follows: Maricopa County Pima County All Other Counties (Combined) 60% 16% 24% While the original project approvals were consistent with this split, the transfer of the $104,000,000 of STAN funds as required in Laws 2009, First Special Session, Chapter 1, will not allow this split to be achieved. Since all of the other STAN projects were approved and underway at the time of the transfer, there was no opportunity to re-allocate funding among the three regions and the impact of the transfer fell disproportionately on projects in Maricopa County. APPROVED PROJECTS In Fiscal Year 2007, the State Transportation Board, working in conjunction with the state’s Metropolitan Planning Organizations (MPOs) and Councils of Governments (COGs), approved 10 highway construction projects for funding. It also approved 6 design projects associated with the 10 highway projects (the other four projects having already been designed). In addition, the Board approved funding for right-of-way protection on the planned Williams Gateway Freeway. The total approved STAN funding for these projects is $319,500,000. Because of the STAN funding, the projects approved by the Board will be accelerated from one to fourteen years. In Fiscal Year 2008, the State Transportation Board approved $8,000,000 of funding to accelerate a project on SR 77 in Pima County (Calle Concordia to Tangerine Road). In addition, it approved $10,000,000 of funding from the Reimbursement of Interest Costs sub-account to reimburse the MAG region and the cities of Goodyear, Avondale and Litchfield Park for certain interest costs associated with the acceleration of work on I-10 from Loop 101 to Sarival Road. The Board also approved $10,000,000 of funding from the Roads of Regional Significance and Congestion Mitigation sub-account for the acceleration of a project in the Town of Queen Creek. Finally, the Board took action to slightly adjust the level of funding for three MAG region design projects and two PAG region construction projects originally approved in FY 2007. As a result of the transfer of $104,000,000 from the STAN Account to the State General Fund as required by Laws 2009, First Special Session, Chapter 1, Section 28, STAN funding for three projects was eliminated. The three projects that were impacted by this transfer are: 2 Annual Report Statewide Transportation Acceleration Needs Account (STAN) Route: Interstate 10 Project Location: Verrado Way to Sarival Road Project Description: Construct one additional general purpose lane in each direction Estimated Cost: $43,200,000 STAN Expenditures: $0 Project Status: Project was selected for funding with American Reinvestment and Recovery Act (ARRA) funds and is currently under construction Years Project Accelerated: 14 Years Route: Interstate 17 Project Location: SR 74 to Anthem Way Project Description: Construct one additional general purpose lane in each direction Estimate Cost: $30,500,000 STAN Expenditures: $0 Project Status: Project was selected for funding with American Reinvestment and Recovery Act (ARRA) funds and is currently under construction Year Project Accelerated: 14 Years Route: SR 802, Williams Gateway Freeway Project Location: Santan Freeway to Ellsworth Road Project Description: Advance acquisition of right-of-way Estimated Cost: $20,400,000 STAN Expenditures: $0 Project Status: City of Mesa has provided funding through the issuance of Highway Project Advancement Notes (HPANs) Years Project Accelerated: 7 Years PROJECT DETAILS The following section details each individual project approved by the State Transportation Board for STAN funding. Maricopa County Projects Route: Interstate 10 Project Location: Verrado Way to Sarival Road Project Description: Design Project Estimated Cost: $2,700,000 Expenditures to Date: $2,484,672 Project Status: Design complete Years Project Accelerated: 13 Years 3 Annual Report Statewide Transportation Acceleration Needs Account (STAN) Route: Interstate 17 Project Location: SR 74 to Anthem Way Project Description: Design Project Estimated Cost: $2,600,000 Expenditures to Date: $2,510,952 Project Status: Design complete Years Project Accelerated: 14 Years Route: Loop 101, Pima Freeway Project Location: Tatum Boulevard to Princess Drive Project Description: Design Project Estimated Cost: $2,500,000 Expenditures to Date: $1,342,729 Project Status: Design complete Years Project Accelerated: 2 Years Route: Loop 101, Pima Freeway Project Location: Tatum Boulevard to Princess Drive Project Description: Construct one additional high-occupancy vehicle (HOV) lane in each direction Estimated Cost: $30,000,000 Expenditures to Date: $16,310,522 Project Status: Project is complete Years Project Accelerated: 3 Years Route: Loop 101, Price Freeway Project Location: Baseline Road to Santan Freeway Project Description: Design Project Estimated Cost: $3,000,000 Expenditures to Date: $1,959,089 Project Status: Design complete Years Project Accelerated: 2 Years Route: Loop 101, Price Freeway Project Location: Baseline Road to Santan Freeway Project Description: Construct one additional high-occupancy vehicle (HOV) lane in each direction Estimated Cost: $35,500,000 Expenditures to Date: $33,207,547 Project Status: Project is complete Years Project Accelerated: 2 Years 4 Annual Report Statewide Transportation Acceleration Needs Account (STAN) Route: Loop 303, Estrella Freeway Project Location: Loop 303 and Bell Road Project Description: Design Project Estimated Cost: $1,500,000 Expenditures to Date: $79,809 Project Status: CMAR Project underway; project combined with other Loop 303 CMAR projects Years Project Accelerated: 1 Year Route: Loop 303, Estrella Freeway Project Location: Loop 303 and Bell Road Project Description: Construct new Traffic Interchange Estimated Cost: $11,000,000 Expenditures to Date: $30,929,175.59 Project Status: CMAR Project underway Years Project Accelerated: 3 Years Route: Loop 303, Estrella Freeway Project Location: Cactus Road and Waddell Road Project Description: Design Project Estimated Cost: $1,300,000 Expenditures to Date: $2,644,588 Project Status: CMAR Project underway Years Project Accelerated: 1 Year Route: Loop 303, Estrella Freeway Project Location: Cactus Road and Waddell Road Project Description: Construct crossroad improvements Estimated Cost: $9,200,000 Expenditures to Date: $0 Project Status: CMAR Project underway; project combined with other Loop 303 CMAR projects Years Project Accelerated: 3 Years Route: Interstate 10 Project Location: Loop 101 – Sarival Road Project Description: Reimburse Interest Costs Estimated Cost: $10,000,000 Expenditures to Date: $9,961,800 Project Status: Project is complete Years Project Accelerated: 3 to 6 Years 5 Annual Report Statewide Transportation Acceleration Needs Account (STAN) Route: Ellsworth Road Project Location: Hunt Highway to Chandler Heights Project Description: Construct Capacity Improvements Estimated Cost: $10,000,000 Expenditures to Date: $10,000,000 Project Status: Project is complete Years Project Accelerated: 5 Years Pima County Projects Route: Interstate 10 Project Location: Pinal Air Park to Tangerine Road Project Description: Construct one additional general purpose lane in each direction Estimated Cost: $27,000,000 Expenditures to Date: $29,631,270 Project Status: Project is complete Years Project Accelerated: 1 to 3 Years Route: SR 86 Project Location: Town of Sells Project Description: Construct roadway widening Estimate Cost: $14,000,000 Expenditures to Date: $14,304,091 Project Status: Project is under construction Years Project Accelerated: 1 Year Route: SR 86 Project Location: Valencia to Kinney Road Project Description: Construct intersection improvements Estimated Cost: $1,600,000 Expenditures to Date: $200,146 Project Status: Project is under construction Years Project Accelerated: 3 Years Route: SR 77 Project Location: Calle Concordia to Tangerine Road Project Description: Construct roadway widening Estimated Cost: $8,000,000 Expenditures to Date: $8,014,543 Project Status: Project is complete Years Project Accelerated: 2 Years 6 Annual Report Statewide Transportation Acceleration Needs Account (STAN) Thirteen Other County Projects Route: Interstate 10 Project Location: Pinal Air Park to Picacho Peak Project Description: Construct one additional general purpose lane in each direction Estimate Cost: $75,500,000 Expenditures to Date: $55,344,435 Project Status: Project is under construction Years Project Accelerated: 1 Year 7