RECEIVE an update on the results of the Measure X annual audit and compliance reporting for 2017/18.

Approved by the 69% of the voters in 2016, Measure X was projected to generate an estimated $20 million annually, for a total of $600 million over thirty years.  Revenues have been collected since April, 2017, and in fact, the receipts for fiscal year 2017/18 totaled $28,026.311. The funding source is a retail transactions and use tax of 3/8 cents. The revenue from the sales tax measure can only be used to fund transportation safety and mobility projects in Monterey County.  A maintenance of effort requirement exists to assure that the cities and county do not use Measure X funding to backfill prior levels of transportation expenditures.  

The Transportation Agency has fiduciary responsibility for the administration of the voter-approved Transportation Safety and Investment Plan (Measure X) funds.  Each jurisdiction entered into a tax sharing agreement with the Transportation Agency in order to receive their share of Measure X Local Streets & Roads revenues.  In exchange, these agreements require the jurisdictions to submit audit reports annually to the Transportation Agency detailing the steps taken to comply with the implementing ordinance.

In accordance with the Policies & Project Descriptions for the Transportation Safety & Investment Plan, a Citizens Oversight Committee representing a diverse range of community interests was formed within 6 months of voter approval of Measure X. Members and their alternates were nominated by the organization they are representing. Additional members were nominated by the Transportation Agency Board of Directors to assure that a broad range of geographic and stakeholder interests are represented on the committee.

The duties of the Committee as defined in the Policies & Project Descriptions for the Transportation Safety & Investment Plan are as follows:

• Conduct independent audits to assure that funds are being expended in accordance with requirements of the Transportation Safety & Investment Plan;
• Review and make recommendations on any proposed changes to the plan,  prior to the Transportation Agency Board consideration;
• Review and comment on project delivery schedules as represented in the Strategic Expenditure Plan and make recommendations to the Transportation Agency on any proposals for changing project delivery priorities; and
• Prepare annual reports regarding the administration of the program, to be presented to the Transportation Agency Board of Directors and available for public review. 

In accordance, the Measure X Citizen Oversight Committee established a subcommittee on January 15, 2019 to conduct the independent audit of the revenues and expenditure of Measure X funds. The subcommittee was asked to report the results of the audit to the full committee at their next meeting and to prepare the Measure X Annual Report.

The first  full year of Measure X reporting, for fiscal year 2017/18, was due on December 31, 2018. As this was the first year of the independent audits’ requirements, there has been a learning curve for all entities involved.  As of May 7, 2019, of the thirteen recipient jurisdictions, nine have fully complied and four have only partially complied  with the independent audit requirements. Below is a chart detailing the reporting status of each jurisdiction.  At this time, staff is continuing to work with the non-compliant jurisdictions to ensure all reporting materials are submitted.  Staff will then evaluate this year’s process and develop a set of recommend changes to help clarify the requirements and avoid reporting delinquencies in the future.

The Committee Chair, Paula Getzelman will present the Measure X Oversight Committee's review of the 2017/18 Audit Results, and Principal Planner Mike Zeller will present the staff's review of the 2017/18 audit reports from the cities and county. 

• Request for Annual Audit Materials - from TAMC
  
• Maintenance of Effort Letter - from Oversight Committee Chair
• TAMC Executive Director's Letter