Arizona State Transportation Board Annual Report On The Statewide Transportation Acceleration Needs (STAN) Account Submitted To The Honorable Doug Ducey Governor, State of Arizona The Honorable Steve Yarbrough President, Arizona State Senate The Honorable Javan D. Mesnard Speaker, Arizona House of Representatives As of July 1, 2017 Annual Report Statewide Transportation Acceleration Needs (STAN) Account 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. This report is pursuant to paragraph (L) which requires the State Transportation Board to submit a report to the Governor, President of the Senate, and Speaker of the House on the status of the STAN account on or before July 1 of each year. FUNDING HISTORY 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 was established and $10,000,000 was transferred to this account in August, 2010. The project approved for these funds was SR 24, Williams Gateway Freeway and all $10,000,000 has now been expended. Chapter 345, Section 9 directed that all funds in the STAN Account be allocated to certain counties and groups of counties based on population thresholds. As written, funding in the STAN Account were 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, did 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 (see Project History section for further detail). 1 Annual Report Statewide Transportation Acceleration Needs (STAN) Account As of June 30, 2012, all appropriations had been fully deposited to, or transferred from, the STAN Account. As of June 30, 2017, the STAN Account and its sub-accounts have earned $34,789,907.18 in interest and have disbursed $257,340,714.30in project costs. The ending balance as of June 30, 2017 was $613752.83, which is obligated to the final two STAN-funded projects, both of which are currently under construction (see Project History). PROJECT HISTORY 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 were expected to be accelerated from one to fourteen years. In Fiscal Year 2008, the State Transportation Board approved $8,000,000 to accelerate SR 77 in Pima County from Calle Concordia to Tangerine Road. In addition, it approved $10,000,000 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 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 impacted by this transfer were: 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 has been completed. 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 has been completed. Year Project Accelerated: 14 Years 2 Annual Report Statewide Transportation Acceleration Needs (STAN) Account 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: $10,000,000.00 Project Status: City of Mesa provided funding through the issuance of Highway Project Advancement Notes (HPANs); the project is completed. Years Project Accelerated: 7 Years In Fiscal Year 2014, the State Transportation Board approved $1,100,000 in STAN funds for SR 86 from Valencia to Kinney in Pima County. In addition, $16,700,000 was approved for US 60, Silver King Section and Superior Streets in Pinal County. 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: $2,484,666 Project Status: Design complete Years Project Accelerated: 13 Years Route: Interstate 17 Project Location: SR 74 to Anthem Way Project Description: Design Project Estimated Cost: $2,600,000 Expenditures to Date: $2,509,334 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 3 Annual Report Statewide Transportation Acceleration Needs (STAN) Account 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 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: Design is complete 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: $31,001,612 Project Status: Project is complete 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: $2,644,402 Project Status: Project is complete Years Project Accelerated: 1 Year 4 Annual Report Statewide Transportation Acceleration Needs (STAN) Account 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: Project is complete 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: $10,380,499 Project Status: Project is complete Years Project Accelerated: 3 to 6 Years 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 Route: Loop 101 Project Location: Maryland Avenue HOV ramps Project Description: Construct Capacity Improvements Estimated STAN Cost: $10,000,000 Expenditures to Date: $9,901,975.98 Project Status: Project is complete Years Project Accelerated: 2 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 Estimated Cost: $14,000,000 Expenditures to Date: $14,267,859 Project Status: Project is complete Years Project Accelerated: 1 Year 5 Annual Report Statewide Transportation Acceleration Needs (STAN) Account Route: SR 86 Project Location: Valencia to Kinney Road Project Description: Construct intersection improvements Estimated Cost: $580,192 Expenditures to Date: $166,326 Project Status: Construction is underway Years Project Accelerated: 2 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 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 Estimated Cost: $75,500,000 Expenditures to Date: $55,361,497 Project Status: Project is complete Years Project Accelerated: 1 Year Route: US 60 Project Location: Silver King section and Superior streets Project Description: Reconstruct to 4 lane roadway with center turn lane Estimated Cost: $16,700,000.00 Expenditures to Date: $16,700,225.00 Project Status: Construction is underway Years Project Accelerated: 1 Year 6