Measure X Amendment - Capital Investment Grant Consultant Services

1. APPROVE Amendment #1 of Measure X Regional Funding Agreement, subject to approval by Agency counsel, for the SURF! Busway and Bus Rapid Transit project to include up to $750,000 in Measure X funds for a Capital Investment Grant Consultant Services; and
2. AUTHORIZE the Executive Director to make administrative changes to the contract if such changes do not increase the Agency's net cost, subject to approval by Agency counsel. 

With up to $15 million identified in Measure X for the project, the TAMC Board programmed $1,450,000 for the preliminary engineering and environmental analysis phase of work in December 2019. This amendment adds an additional $750,000 of Measure X funds towards the project during its pre-construction phase. 

Project Overview

The Highway 1 Busway Project, rebranded as the SURF! Busway and Bus Rapid Transit project, was identified as a regional project in Measure X. The bus rapid transit corridor parallels Highway 1 between Marina and Seaside/Sand City. The project is proposed to be built within the Monterey Branch Line right-of-way, owned by the Transportation Agency, to provide commuters a traffic-free alternative to Highway 1. 

Benefits of the SURF! Busway and Bus Rapid Transit project include: 

• Improving air quality, reducing greenhouse gas emissions
• Increasing transit use, reduce traffic on Highway 1
• Enhancing mobility, improving bicycle trail connections
• Improving travel time reliability for transit users
• Improving transit connections

Project Timeline

November 2019, Monterey-Salinas Transit hired a consultant to prepare preliminary engineering and environmental analysis for the SURF! project. On December 4, 2019, the Transportation Agency Board of Directors approved the Regional Funding Agreement for up to $1,450,000 with Monterey-Salinas Transit to fund the preliminary engineering and environmental phase of the SURF! Busway and Bus Rapid Transit Project. In April 2020, The SURF! Busway and Bus Rapid Transit project was accepted into the Federal Transit Administration's Capital Investment Grant program. In November 2020, MST released a request for proposals for a Capital Investment Grant Consultant. Following the close of the request for proposals, MST received two proposals. In December 2020, MST requested to amend the funding agreement to support consultant services to lead MST through the Capital Investment Grant process with up to $750,000 in Measure X dollars.

Capital Investment Grant Program

The Capital Investment Grant program is a discretionary grant program that funds transit capital investments, including heavy rail, commuter rail, light rail, streetcars and bus rapid transit. Federal transit law requires that transit agencies seeking Capital Investment Grant funds complete a series of steps and analysis over several years prior to receiving a grant agreement with the Federal Transit Administration. There is a high degree of confidence that MST will ultimately receive a Capital Investment Grant as MST has been accepted into the Project Development Phase of the Capital Investment Grant program.

The letter received from MST requesting the use of Measure X funds to support a Capital Investment Grant Consultant is included as an attachment to the staff report. The initial cost estimate described in the letter was $315,000. Received proposals show a competitive range of cost between $730,031 to $1,419,264. MST reasons the difference in cost is due to the overall number of hours and length of the project. The scope of services to be completed by the Capital Investment Grant Consultant is attached to the letter received from MST.