ALF FY2024

City of El Mirage — Regular Meeting (2024-01-03)

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101 N. 1st Ave. Suite 1300 
Phoenix, AZ 85003 
valleymetro.org 
602.253.5000 
 
 
 
December 6, 2023 
ARIZONA LOTTERY FUND APPLICATION 
Dear ALF Recipient  
We are pleased to begin the application process for the FY 2024 ALF funds.  Revenues are budgeted 
at $11.2 million. To receive the funds agencies must apply annually.  The attached application is self-
explanatory.  Please pay attention to the required signatures of financial officers and the jurisdiction’s 
appropriate authorizing agent (city or county manager, program director, etc.).  There are two other 
attachments: application instructions and guidelines which highlight and clarify certain aspects of this 
year’s process, and a chart showing the allocation of funds to each agency or jurisdiction. 
Applicants are required to provide more detailed information about the services or projects that will be 
funded with Arizona Lottery Funds than has been provided previously.  Additional space has been 
provided on project pages two through four of the application form for this purpose.  Concurrently in the 
Annual Report and Expenditure Certification, due after June 30, 2024, the project narrative should 
include a status of the project included in the original application and quantifiable data such as number 
of trips, miles and/or hours of service provided.  If funds were used for a capital related project the 
status of the project, percentage complete, vehicles purchased, shelters installed, bus bays constructed 
and other relevant project related information.        
Valley Metro distribution of funds to jurisdictions is anticipated to be near the end of January 2024.  To 
be eligible for a distribution, the completed application must be returned to Valley Metro by the close of 
business on January 12, 2024.  Please note that distributions may be withheld to jurisdictions which 
have not submitted their FY2023 Annual Report and Expenditure Certification. If you wish to opt out of 
the program for FY 2024, please submit a letter or email to this effect to Valley Metro indicating your 
jurisdiction does not wish to participate in this year's program.  Additional instructions are provided 
in the attachments. 
If you need assistance or have any questions, please do not hesitate to contact Rebecca Coleman by 
email at rcoleman@valleymetro.org. 
Sincerely,  
 
 
 
Ken Kessler 
Chief Financial Officer 
 
c: Intergovernmental Representatives 
    Transit Managers

1 
 
ARIZONA LOTTERY FUND 
 APPLICATION INSTRUCTIONS AND GUIDELINES FOR 
 ELIGIBLE RECIPIENTS 
 
 
INTRODUCTION AND GUIDELINES 
 
Maricopa County and jurisdictions within the county that receive Arizona Lottery Fund (ALF) funding are 
required to use the funding for public transportation. There is no local match requirement for these 
funds.  Following is a general outline of eligible expenditures and recipients. Attached is a Glossary 
that further describes the terminology used in this document. 
 
Public transit is defined as any service, vehicle(s), or support facility for a vehicle(s), intended for the 
purpose of conveying multiple passengers (i.e., typically 5 or more (1)) and which meets applicable state 
and federal safety and accessibility laws, rules, and regulations. The definition also includes the planning 
and administrative support for such services. It is the intent of the program to provide funds for the purpose 
of providing transit service or facilities that is publicly available to the following populations: 
 
 
The general public. 
 
Elderly persons. 
 
Persons with disabilities. 
 
Welfare recipients and “low-income” persons engaged in employment activities. 
 
Funding will be distributed directly to eligible jurisdictions in the county and includes Maricopa County, 
and cities and towns within the county. 
 
In the case of private, not-for-profit agencies and private, for-profit transit providers, the city, town, or county 
receiving the ALF funding must enter into a contract or grant agreement with the proposed operator to 
provide the transportation service that is approved by its governing body. The contract and/or grant 
agreement, accompanied by Board or Council resolution, must be available to Valley Metro as evidence 
of the agreement. 
 
Jurisdictions may enter into agreements to share ALF funding to provide eligible public transit services 
across jurisdictional boundaries to meet the mutual public transit needs of the jurisdictions involved.  
Additionally, funds may be utilized to provide “vouchers” or other remuneration for services rendered 
to for-profit transportation companies when there is clear evidence that the service is for the general 
public, special needs population, or “low-income” and “welfare to work” employment.   
 
Projects must be included in or compatible with the adopted Regional Transportation Plan.  Additionally, 
use of ALF funding implies that all applicable state and federal Civil Rights statutes are to be complied 
with in the provision of services rendered with these funds, including but not limited to, Title VI of the 
Civil Rights Act and the Americans with Disabilities Act.  It is the responsibility of each community within 
the county in receipt of the funds and any end-use (grant or subcontract) recipient to be familiar with all 
portions of State and Federal Motor Vehicle Safety Standards, Motor Carrier, and Motor Vehicle 
Division regulation requirements, restrictions, and conditions. 
 
(1) Some “special needs,” “dial-a-ride,” or other demand-responsive or carpool vehicles may have capacity of less 
than 5 passengers and include vehicle types such as sedans or station wagons.

2 
 
Eligibility 
To be eligible Maricopa County and jurisdictions within the county must apply for funds annually, up to the 
amount indicated in the annual allocation. These funds have historically been used to support a variety of 
projects including transit operations, vehicle purchases, transit facility or amenity construction, and transit 
planning. 
 
Subject to consultation with Valley Metro jurisdictions may work together to combine applications where it 
is mutually beneficial to do so from an operations or procurement perspective. Regardless, these 
applications must have the prior approval of Valley Metro, for such an arrangement and a signed letter of 
agreement between the city, town, or county manager must be received. 
 
While not directly eligible as primary or first tier recipients from Valley Metro, local private-non-profit (PNP) 
agencies providing special needs transportation may approach local jurisdictions for all or a portion of its 
ALF allocations to support their transportation operations as sub-grantees of the primary recipient 
jurisdiction. These agreements are made between the jurisdictions and PNP and may or may not include 
local matching fund assistance from the PNP or local jurisdiction, which is at that jurisdiction’s discretion. 
Any such transportation provided by the PNP must qualify as public transportation to be eligible for the 
funds. 
 
Application Process 
The application process is straightforward and for the most part self-explanatory.  The spreadsheet includes 
four tabs. The first is a summary page with information about the applicant and a summary of the funding 
request. The second, third, and fourth tabs are for the project description(s). There is room for two projects 
on the tab. If more space is required simply copy the page as many times as needed. The funding totals 
for the projects should carry forward to the summary application page. 
 
Please provide specific descriptions for projects. Support for fixed route and paratransit services 
should be reported as separate projects. If ALF is intended to support fixed route services, please 
provide specific routes that will be supported and whether the funds will be used for existing or 
expanded service levels. 
 
The proposed projects must be included in or compatible with the adopted Regional Transportation Plan. 
Planning projects should be included in the adopted Unified Planning Work Program (UPWP) and capital 
projects should be included in the adopted Transportation Improvement Program (TIP).  The grant funds 
do not require a local matching share. 
 
Completed applications can be e-mailed to rcoleman@valleymetro.org.The application should be signed 
and scanned when submitting through e-mail.  We will review your submission and reply promptly of 
acceptance or rejection of the application.  We will also accept paper applications, but they must be 
received in the Valley Metro offices by the due date indicated in the cover letter.      
 
If a recipient elects not to make application for funding, it forfeits all rights to the funds allocated to that 
entity and must submit a letter to this effect to Valley Metro indicating it does not wish to participate in this 
year's program.  The letter needs to be signed by the County Manager or City or Town Manager or their 
proxy. The applicant also should understand that funds do not revert or otherwise flow back to that entity's 
ALF account or allocation for the following year but will be used by Valley Metro within the region to support 
public transit activities, at the discretion of the Board of Directors.

3 
 
ALF ELIGIBLE PUBLIC TRANSPORTATION EXPENDITURES 
Planning and Training Related Expenses  
ALF funding may be used for transit planning studies or portions of planning studies focused on transit 
planning needs for the community. Additionally, transit training activities are eligible and include: 
 
 
Short- and long-range transit related plans and programs to develop, implement, or enhance transit 
patronage. 
 
Transit training for activities related to transit procurement and operations and travel training; and 
 
Transit related memberships in organizations and associations associated with transit activities. 
Capital Expenses  
Capital expenses include the acquisition, construction and improvement of public transit facilities and 
equipment needed for a safe, efficient, and coordinated public transportation system. Examples of eligible 
capital expenditures include, but are not limited to: 
 
 
Fleet including buses, vans or paratransit vehicles. 
 
Light and rapid rail construction projects. 
 
Radios and communications equipment. 
 
Passenger shelters, bus stop signs, and similar passenger amenities. 
 
Vehicle rehabilitation, remanufacture, or overhaul. 
 
 Storage or maintenance facility construction or rehabilitation. 
 
Extended warranties which do not exceed the industry standard. 
 
Operational support such as computer hardware or software. 
 
Installation costs; vehicle procurement, testing, inspection, and acceptance costs. 
 
Construction or rehabilitation of transit facilities including design, engineering, and land acquisition. 
 
Provide access or equipment for bicycle transport on transit vehicles or to transit facilities. 
 
Lease of equipment or facilities when lease is more cost effective than purchase. 
 
Transit related intelligent transportation systems, (e.g., passenger information kiosks, scheduling 
technology, vehicle locator or tracking systems, and road and weather information systems). 
Operating Expenses  
Operating expenses are considered those costs directly related to system operations. At a minimum, the 
following items are considered operating expenses: 
 
 
Fuel and oil for vehicles, and vehicle maintenance costs. 
 
Transit employee salaries and fringe benefits. 
 
Licenses. 
 
Insurance. 
 
Facility rental (appropriate to transit related operations). 
Other Eligible Expenses  
Additional expenses related to public transportation are also eligible for ALF funding and include: 
 
 
Marketing and administration of Transportation Demand Management programs to encourage 
reductions in travel and promote alternative modes of travel such as carpooling, vanpooling, 
walking, bicycling, and alternative work schedules. 
 
 Marketing to advertise and/or promote transit service in the service area. 
 
Expenses related to financial reporting requirements related to ALF.

4 
 
Exceptions  
If the grant recipient or end-use provider has a situation that varies from the eligible recipients and 
expenditures outlined above, it must contact Valley Metro to seek clarification regarding eligibility.  
 
Two Year Expenditure Limit and Extensions  
Funds distributed to Maricopa County and jurisdictions within the county must be utilized within two years 
from the date of distribution by Valley Metro.  If an entity does not expect to expend all its funds within 
this timeframe, it must submit a letter to Valley Metro requesting an extension if it wishes to retain those 
funds.  Extensions are granted for a maximum of one (1) year.  Granting of an extension is not automatic 
and requests are subject to Valley Metro review.  If an entity does not meet the two-year expenditure 
limit and does not request an extension unspent funds are subject to remittance to Valley Metro 
and/or the jurisdiction may be ineligible to receive future allocations of funds until the jurisdiction 
submits an acceptable plan to spend the funds on valid transit projects. 
 
Annual Report and Expenditure Certification  
Within 120 days after the end of each fiscal year (June 30) the recipient must submit to Valley Metro a 
Financial Report that includes all ALF funds received by year and a summary of expenditures to date for 
each category in the agency’s financial system.  Failure to submit a timely report may result in 
withholding or potential forfeiture of future disbursements from the ALF Program. 
 
The report must also include a project narrative.  The project narrative should include a detailed description 
of the service provided, qualitative description of program measures that impacted the availability of 
transportation services because of the project(s). Examples include geographic coverage, service quality 
and/or service times and milestones accomplished. Statistical information may include number of one-way 
trips, number of revenue miles or revenue hours provided by route, and/or total hours of demand service 
provided. 
 
If funds were used for a capital related project(s) provide a detailed description on the additions or changes 
to environmental infrastructure (e.g., transportation facilities, bike paths, shelters installed, sidewalks, etc.) 
technology, vehicles purchased that impacted the availability of transportation services because of the 
project(s) during the reporting year. 
 
The report should provide relevant information about the project(s) described in the original application. 
The report does not need an external auditor certification.  The jurisdiction will self-certify.  The report 
should be certified by the jurisdiction’s chief financial officer, city controller or finance director.  Valley Metro 
may require a review by an outside audit firm at its discretion. 
 
Forfeiture of Funds 
If a jurisdiction within the county elects NOT to make application for funding for a particular year, it forfeits all 
rights to the funds allocated to the jurisdiction and must submit a letter of acknowledgement to this effect 
to Valley Metro indicating it does not wish to participate in this year's program. The letter needs to be 
signed by the ranking County Manager or City or Town Manager or their proxy.  The applicant also should 
understand that these funds and any funds returned to Valley Metro do not revert or otherwise flow back 
specifically to that entity's ALF account or allocation for the following year but will be used by Valley Metro 
within the region to support public transit activities.

5 
 
GLOSSARY OF TERMS 
 
ALF – Arizona Lottery Fund is judicially mandated funding currently derived from Powerball lottery 
revenues and provides public transportation funding in Maricopa County. These funds were formerly 
distributed through the Local Transportation Assistance Fund (LTAF), which was eliminated in 2010. 
General public - Describes all individuals, regardless of age, race, minority status or physical or mental 
condition. 
 
Elderly persons - Describes persons who are 60 years of age or older. 
Persons with disabilities - Typically describes individuals with irreparable or otherwise chronic, long-
term physical or mental impairments that impede significant life functions. As the term is used here, a 
“disability” does not typically imply or involve temporary or otherwise non-recurrent injury or impairment 
due to accident or illness. 
Public Transportation or Transit - As defined in A.R.S. 48-5101.8 "Public transportation" means local 
transportation of passengers by means of a public conveyance. For the purposes of the ALF Program, the 
terms "Public Transportation" and "Transit" are interchangeable. 
 
Welfare Recipient and Low-Income Employment Activities - Describes service which is oriented to 
persons who are either welfare recipients or are under the federally defined “low income” threshold (see 
following definitions), who require transportation to government or privately sponsored employment or 
employment programs, including but not limited to traditional “welfare-to-work” programs such as Access 
to Jobs, Temporary Assistance To Needy Families (TANF), etc. 
Welfare Recipient - An individual who receives or received aid or assistance under a state program 
funded under Part A of Title IV of the Social Security Act (whether in effect before or after the effective date 
of the amendments made by Title I of the Personal Responsibility and Work Opportunity Reconciliation 
Act of 1996 (Public Law 104-193); (110 Stat. 2110)) at any time during the three-year period before the 
date on which the applicant applies for a grant. 
 
Low-Income Individual - An individual whose family income is at or below 150 percent of the poverty 
line (as that term is defined in Section 673(2) of the CSBG Act (42 U.S.C. 9902(2)) including any revisions 
required by that section for a family of the size involved, as calculated by HHS. The 1999 guidelines were 
published in the March 18, 1999, (Volume 64, Number 52) Federal Register, page 13428-13430, and are 
available on the web at [http://www.aoa.gov/network/99hhspov.html]. 
 
 
A provider may place conditions on passenger age if it can document that it is not generally appropriate to its clientele 
group (such as a senior program) or cannot provide service to that individual(s) in a safe and responsive manner. An 
example of such a condition may be that service to a child under a specific age cannot be provided unless a travel 
assistant or guardian accompanies them. Situations may arise where it is permissible for a service provider to refuse 
to provide transportation to an individual(s). One such condition is when it can be documented that service cannot be 
provided in a safe and responsible manner to the individual(s), the passengers, or the driver/operator -- based on an 
assessment of the individual’s condition and/or behavior or driver/operator’s skills and capabilities. See the Americans 
with Disabilities Act (ADA) for further detail on what limitations may be placed on boarding refusals or operator-
initiated de-boarding actions en route. Also see the ADA for other limitations or required service conditions such as 
service animals, medical equipment, and travel companions or assistants. 
 
Updated 12/5/23

2020 Population (1)
% of County Population
FY 2024 ALF
Amount (2)
Apache Junction
                          395 
0.009%
997
$                  
Avondale
89,480
2.017%
225,883
$           
Buckeye
93,629
2.110%
236,357
$           
Carefree
3,692
0.083%
9,320
$               
Cave Creek
4,924
0.111%
12,430
$             
Chandler
277,116
6.246%
699,551
$           
El Mirage
35,927
0.810%
90,694
$             
Fountain Hills
23,857
0.538%
60,225
$             
Gila Bend
1,892
0.043%
4,776
$               
Gilbert
268,728
6.057%
678,376
$           
Glendale
248,686
5.605%
627,782
$           
Goodyear
96,789
2.182%
244,334
$           
Guadalupe
5,326
0.120%
13,445
$             
Litchfield Park
6,881
0.155%
17,370
$             
Mesa
505,447
11.392%
1,275,949
$        
Paradise Valley
12,671
0.286%
31,987
$             
Peoria
191,849
4.324%
484,303
$           
Phoenix
1,611,162
36.314%
4,067,212
$        
Queen Creek
51,260
1.155%
129,401
$           
Scottsdale
241,718
5.448%
610,192
$           
Surprise
144,246
3.251%
364,134
$           
Tempe
181,580
4.093%
458,380
$           
Tolleson
7,262
0.164%
18,332
$             
Wickenburg
6,622
0.149%
16,717
$             
Youngtown
7,056
0.159%
17,813
$             
Maricopa County
318,509
7.179%
804,040
$           
Totals
4,436,704
100.00%
11,200,000
$      
Maricopa County Population
4,436,704
Estimated Allocation
11,200,000
$         
(1) Population source MAG Population estimates July 1, 2020
(2) FY 2024 budget allocation
FY 2024 Arizona Lottery Local Transportation Assistance Fund Distribution
12/5/2023

ALF FY24 Packet
Final Audit Report
2023-12-05
Created:
2023-12-05
By:
Rebecca Coleman (rcoleman@valleymetro.org)
Status:
Signed
Transaction ID:
CBJCHBCAABAAXWnEojJfQ094sWjSmcl42UZG6boNysg-
"ALF FY24 Packet" History
Document created by Rebecca Coleman (rcoleman@valleymetro.org)
2023-12-05 - 8:58:27 PM GMT
Document emailed to Kenneth Kessler (kkessler@valleymetro.org) for signature
2023-12-05 - 8:59:09 PM GMT
Email viewed by Kenneth Kessler (kkessler@valleymetro.org)
2023-12-05 - 9:17:10 PM GMT
Document e-signed by Kenneth Kessler (kkessler@valleymetro.org)
Signature Date: 2023-12-05 - 9:20:01 PM GMT - Time Source: server
Agreement completed.
2023-12-05 - 9:20:01 PM GMT