The 2019 Integrated Funding Plan, as approved by the Transportation Agency Board, programmed $2,593,665 of federal Highway Improvement Program funds to the Scenic State Route 68. In order for Caltrans to expend these funds to finish the environmental review process, a Cooperative Agreement is required that outlines the duties of Caltrans and the Transportation Agency.

As the main connector between Salinas and the Monterey Peninsula, the Scenic State Route 68 Safety and Traffic Flow project will improve safety, trafffic flow and animal crossing connectivity along the State Route 68 corridor from Josselyn Canyon Rd to San Benancio Road.  There is a need to relieve recurring congestion and queuing at intersections, especially occurring during peak travel periods, and improve wildlife connectivity.  The purpose of the project is to improve overall circulation and accessibility in the project area for all transportation modes with the following goals:

1. Improve corridor traffic flow currently operating at or over-capacity conditions;
2. Improve safety and mobility for vehicles, bicyclists, and pedestrians; and
3. Improve natural habitat of approximately twelve wildlife species that routinely cross State Route 68 in search of food and shelter resulting in roadkill, property damage, and collisions

The project is currently in the environmental review phase, which is being implemented by Caltrans District 5. This phase of work is funded in the State Transportation Improvement Program, however the project has experienced a cost overrun of $2.6 million due to staffing needs and the necessity of conducting cultural site surveys.  The 2019 Integrated Funding Plan approved by the Transportation Agency Board included $2.6 million of funding from the Highway Infrastructure Program to cover this shortfall and keep the project moving towards construction.

The federal Consolidated Appropriations Act of 2018 and the Department of Transportation Appropriations Act of 2019 set aside funds for the Highway Infrastructure Program.  The Highway Infrastructure Program provides federal funds to construct highways, bridges, and tunnels.  Due to the restrictions that are typically placed on federal funds, the Agency attempts to consolidate federal funds onto a small number of larger projects.  In this case, the Scenic State Route 68 project was an ideal candidate for these funds as it met the eligibility requirements of being a project on the State highway system and could meet the funding obligation and expenditure deadlines.

A Cooperative Agreement is needed to establish Caltrans as the lead agency for the environmental review process and TAMC as the funding agency. The Cooperative Agreement outlines the duties of Caltrans and of TAMC in order to complete the environmental process and stipulates that Caltrans is responsible for completing all work related to this phase of the project.  The environmental review process is expected to be completed by early 2023. Successful implementation of this Cooperative Agreement will allow TAMC to stay on schedule with the project development process, including full design of the corridor and then construction.