The Policies and Project Descriptions for the Transportation Safety & Investment Plan, approved by the Transportation Agency Board of Directors in May 2016, includes a provision allowing for loans to be made using the regional share of Measure X funds. In addition, the Transportation Agency Board approved a policy to allow the three smallest cities (Gonzales, Del Rey Oaks, and Sand City) to borrow funds from the Transportation Agency to complete specific projects and repay the principal and interest using their local share of Measure X revenues. To date, two cities have borrowed funds for the following projects:
City of Gonzales:
The City of Gonzales requested that the Transportation Agency provide a $2.5 million loan to the City for their Alta Street Rehabilitation project. This $4.275 million project consisted of grinding the existing pavement of Alta Street between Gonzales River Road and Gloria Road down to the base layer, and reusing the ground pavement to reestablish the base and repave the roadway. This is an area that receives a high portion of truck traffic and was the City's top priority Measure X project. The project was completed in March 2018, and the City is repaying the interest-bearing loan from the City's share of Measure X revenues.
City of Del Rey Oaks:
The City of Del Rey Oaks requested that the Transportation Agency provide an $861,300 loan to the City to complete reconstruction road work on some of the City's most distressed streets. These projects consisted of complete reconstruction road work on 14 cul de sacs along with Carlton Place and Carlton Drive, which were the City's top priority Measure X projects. Work has commenced on these projects and the City is repaying the interest-bearing loans from the City's share of Measure X revenues.
Monterey-Salinas Transit:
In addition to these advancements of local Measure X funds, on February 27, 2019, the Transportation Agency Board of Directors unanimously approved an agreement with Monterey-Salinas Transit for short-term Measure X loans up to $3,000,000 for payroll and other operating costs, to be repaid upon receipt of Federal Transit Administration funds. Delays in federal funding have resulted in cash-flow problems affecting Monterey Salinas Transit's ability to meet payroll obligations and other operating expenses. Unless Monterey Salinas Transit can obtain funds at a reasonable interest rate to keep an adequate cash-flow pending receipt of federal funds, Monterey Salinas Transit could be forced to reduce their services to the community. These loans of regional Measure X funds fall under the Mobility for All category of the Transportation Safety & Investment Plan. This action is consistent with Ordinance 2016-01, Monterey County Transportation Safety & Investment Plan (Measure X) and the Policies and Project Descriptions document and only requires Transportation Agency Board approval.
Loans from One Measure X Category to Another:
The Measure X Policies and Project Descriptions document also allows for loans of Measure X funds to be made to projects in another category (Local, Regional, Mobility for All), with additional conditions and oversight. The policy states that unspent regional Measure X funds may be loaned from one category to another at prevailing interest rates provided that repayment occurs within five years. Loans may also be made to projects outside of the regional Measure X program to projects at risk of delays due to a shortfall in State or federal funding, provided repayment is made within five years. Such loans are not interfere with the implementation of programs or projects in the loaning category and must be approved with a two-thirds vote of the Transportation Agency Board of Directors and by a simple majority weighted vote of the Board of Directors based on population, with Citizens Oversight Committee review and recommendation of approval.
Transportation Agency staff will provide a presentation with a review the previous Measure X loans and advancements, and the role of the Citizens Oversight Committee in potential future loans. The Policies and Project Descriptions document is also attached for reference.