Item Coversheet

Agenda Item 6.

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TRANSPORTATION AGENCY FOR MONTEREY COUNTY
Memorandum
To: 

Executive Committee

From:

Michael Zeller, Director of Programming & Project Delivery

Meeting Date:

April 5, 2017

Subject:

Measure X Implementation

RECOMMENDED ACTION:
RECEIVE an update on the coordination activities necessary between the Transportation Agency and local jurisdictions in order to implement Measure X.
SUMMARY:
On December 6, 2016, the Monterey County Board of Elections certified that Measure X passed with 67.71% of the vote.  The sales tax will start being collected on April 1, 2017 and revenues will be available to the jurisdictions by August 2017.  Prior to that, the Transportation Agency will work with the jurisdictions to set up the agreements, pavement management program, financial accounts, and other items required by Measure X's implementing ordinance.
FINANCIAL IMPACT:
Measure X is estimated to generate $600 million over 30 years for transportation improvements in Monterey County.  Of that amount, $360 million (60%) is distributed to the local jurisdictions for road maintenance, while the remaining $240 million (40%) is programmed to regional safety and mobility projects.
DISCUSSION:

With the passage of Measure X by the voters of Monterey County, Transportation Agency staff has been working to develop the organizational frameworks and agreements necessary to implement the measure in advance of revenues being available by August 2017. Below is a summary of activities currently underway by Agency staff:

 

Citizens Oversight Committee: At the March 22, 2017 Transportation Agency Board meeting, the Board approved the formation of a Citizens Oversight Committee to oversee the expenditure of Measure X funds and ensure the appropriate use of the funding. Agency staff has set the first meeting of this group for April 18, 2017 with topics for the agenda including a review of the purpose of the committee; a discussion of the regional projects and eligible expenditures; the development of bylaws; and the election of officers.

 

Financial Advisory Services: Also at the March 22, 2017 Board meeting, the Board approved the release of a Request for Proposals for Measure X Financial Advisory Services. In doing so, Transportation Agency staff is seeking to retain the services of an on-call financial advisor to assist the Agency with setting financial goals and policies for the implementation of Measure X, maintaining overall program cash flow, and, if determined necessary, issuing bonds to expedite the delivery of measure projects. After a competitive bidding process, Agency staff will bring forward a recommendation for a consultant contract at the May Transportation Agency Board Meeting.

 

Revenue Estimator: As part of Agency staff's research into how other self-help counties administer their programs, other agencies recommended the use of a Revenue Estimator to assist with reviewing actual sale tax revenues collected from Monterey County and that the Board of Equalization is reporting and remitting an accurate amount of Measure X funds back to our County. Agency staff will develop a scope of work for the services of a revenue estimator and bring a Request for Proposals to the April Transportation Agency Board for consideration.

 

Partner Agency Coordination: Agency staff is also working closely with our partner agencies to implement Measure X and identify areas where project delivery can be streamlined to help construct projects sooner. As part of this effort, Agency staff set a meeting with Caltrans District 5 and County of Monterey Public Works staff to discuss potential timelines for Measure X's regional projects, matching fund opportunities, and inter-agency coordination.

 

Funding Agreements: The Transportation Agency is working with the local jurisdictions to establish the funding agreements necessary to distribute the local shares of Measure X revenues. This agreement will be similar to, and replace, the existing funding agreement the Agency already executes with the cities for the Regional Surface Transportation Program, and will be used to codify the provisions of the Transportation Safety and Investment Plan Policies and Procedures. After circulating the agreement for comments, Agency staff will bring the agreement to the April Transportation Agency Board meeting for approval.

 

Early Launch Projects: Agency staff is compiling a list of shovel-ready projects that can be quickly constructed with Measure X funding once the revenues begin to be accrued. Projects will be used to demonstrate the early benefits of Measure X to the public.

 

Following the activities of this initial year to develop the structure of administering and implementing Measure X, the draft Funding Agreement calls for a package of documents to be submitted by the jurisdictions by October 31st of each year. That package of documents include:

 

  • Annual Independent Audit: The local jurisdiction shall complete an independent audit of the jurisdiction's financial statements for the prior fiscal year ended June 30th of Measure X funds received and expended.
  • Annual Program Compliance Report: An Annual Program Compliance Report is a document produced no later than October 31 of each year the Measure X tax is in effect, and describes the efforts taken by the jurisdiction to comply with the requirements for the receipt and use of Measure X funds.
  • Maintenance of Effort Report: A report to be adopted by a jurisdiction, no later than October 31 of each year the Measure X tax is in effect, verifying that Measure X funds received by the reporting jurisdiction have been used to augment, and not supplant, local resources spent in the fiscal year.
  • Measure X Five Year CIP: A Capital Improvement Program looking forward for the next five (5) years that specifically references projects anticipated to be funded by Measure X.
  • Pavement Management Report: A report on the pavement conditions of the local jurisdiction, using the standardized Pavement Condition Index.