Council Report

City Council Report 
 
 
Date:  
August 17, 2026 
To: 
 
City Council 
Through: 
Marc Heirshberg, Assistant City Manager 
From:  
Lance Webb, City Engineer 
 
 
Marc Ahlstrom, Assistant City Engineer 
 
Subject: 
Bus Stop Improvements Project  
 
 
City Project No. CP0992PRO 
Council Districts 1, 2, 3, 4 and 6 
 
 
Purpose and Recommendation 
 
The purpose of this report is to request Council approval of a resolution authorizing the 
City of Mesa to enter into an Intergovernmental agreement (IGA) with the Regional Public 
Transportation Authority (Valley Metro) for the design, fabrication and installation of shade 
structures at various Mesa bus stops.  (Refer to Exhibit “A” for the project location).   
 
Staff recommend that Council approve the resolution and authorize the City Manager to 
execute this IGA on behalf of the Mesa, which will authorize the expenditure of 
$2,520,000.00 for the cost to design, fabricate, install and manage construction of new 
shade structures at various locations in Mesa. 
 
 
Background 
 
In 2022, Mesa completed a bus stop shade study.  This study determined that 48 of 
Mesa’s 700 bus stops provide some level of shade through shelters, adjacent buildings, 
or vegetation.  Also, nearly all locations that can accommodate standard bus shelters 
within existing right-of-way have been improved.  The remaining bus stops without shade 
are primarily constrained by limited right-of-way.  To address, the study budget also 
funded the development of a smaller footprint “micro-shelter” design that can be installed 
in tighter spaces to provide shade for bus riders.   Additional funding is also budgeted for 
future bus shelter installations, totaling $1,310,333 in Transit funds budgeted for this 
project. 
 
The Mesa Transit Department leveraged this budget allocation for micro shelters to 
secure an $800,000 grant from the Federal Transit Administration (FTA) for the 
procurement and installation of bus stop shade structures in the fiscal year 2023 federal

budget. The pass-through grant agreement with the City of Phoenix was approved by the 
City Council on October 25, 2025.  The City of Phoenix is the designated grant recipient 
for FTA funds for the Phoenix metropolitan area.  Under this arrangement, the City of 
Mesa will incur project expenses and submit reimbursement requests to Phoenix.  
Phoenix will then draw down the FTA funds and pass the reimbursement back to Mesa.   
 
In 2016, the City initiated a transit advertising program and will use $409,667 in revenue 
from this program as contingency for this project.  
 
Discussion 
 
The purpose of this IGA is to utilize Valley Metro’s existing Job Order Contracting methods 
that allow Federal funds to be used for design and construction.  This strategic partnership 
expedites the construction of bus stop shade structures for the City of Mesa and leverages 
Valley Metro’s expertise in managing FTA funded projects.  This project includes federally 
and locally funded improvements for potentially up to 66 locations.  
 
Community Impact – This project will provide shade to transit riders in the City of Mesa.      
 
Alternatives 
 
The City Council could choose not to enter into this IGA.  This is not recommended 
because it would require the City to utilize the traditional design-bid-build method for 
project delivery.  This would increase the time needed to implement these bus shelters 
and would not guarantee the most qualified contractor to perform the work.   
 
Fiscal Impact 
 
The total fiscal impact of this IGA is $2,520,000.00.  Mesa will own and maintain the bus 
shelters as part of the city’s infrastructure upon completion.  
 
This project is funded by the Transit Fund, bus shelter advertising revenue, and the FTA 
grant funds. 
 
Coordinated With 
 
The Transit Department concurs with this recommendation.