Discussion and possible action to approve an amendment to the Intergovernmental Agreement with the City of Phoenix to secure the purchase of a Dial-A-Ride vehicle funded through a Federal Transit Administration grant. This request is for budget authority to receive reimbursement of a grant-funded Transit vehicle.

This action allows an existing, end-of-life Dial-A-Ride bus to be replaced at no cost to the City.  The City is eligible to receive reimbursement from the Federal Transit Administration (FTA) grant program by way of a pass-through agreement with the City of Phoenix. The City of Phoenix is the regional recipient for grant funds and has received FTA grants that allocate federal funds to Peoria. Grant AZ-2020-051 provides $130,000 in federal funds for the purchase of a Dial-A-Ride bus in FY24.

The last grant agreement between the City of Phoenix and the City of Peoria was approved by City Council on October 26, 2021 for grant pass-through funding for transit.

Staff recommends the approval of the Intergovernmental Agreement Amendment with City of Phoenix for Grant AZ-2020-051 for vehicle procurement expenses.  

Transit’s FY24 operating budget includes funding for a vehicle purchase. The grant funds will be used to reimburse the City for the vehicle procurement expenses.