AUTHORIZE the Executive Director to enter into a Funding Agreement with the County of Monterey, subject to Agency Counsel approval, for an amount not to exceed $500,000 to fund the Preliminary Engineering (including Environmental and Preliminary Design / Engineering) phase of the Blackie Road Extension project.

The County of Monterey is the implementing agency for the Blackie Road Extension project.  This funding agreement between the County of Monterey and TAMC allows the County's project costs to be funded and reimbursed through Regional Development Impact Fees and Senate Bill 1 Local Partnership Program formula funds. 

This funding agreement will allow the Transportation Agency to reimburse the County of Monterey for expenses paid on the Preliminary Engineering (including Environmental and Preliminary Design / Engineering) phase of the project, not to exceed $250,000 in Regional Development Impact Fee funds and $250,000 in Senate Bill 1 Local Partnership Program funds for a total phase cost of $500,000.

The Black Road Extension project will construct a new road from the interchange at Castroville Boulevard & State Route 156 to the existing segment of Blackie Road in north Monterey County.  This project will connect to two other projects that are also planned in the corridor: the State Route 156 / Castroville Boulevard Interchange Improvements; and the State Route 156 West Corridor Improvements. The Blackie Road Extension will provide a new connection from the major distribution center in south Castroville to State Route 156, reducing truck traffic and congestion on State Route 183/Merritt Street through town.

The project is currently programmed with $250,000 of Senate Bill 1 Local Partnership Program formula funds, which the Agency is eligible for because of Measure X. The County and TAMC received the allocation of these funds from the California Transportation Commission at their January 2021 meeting.  The Local Partnership Program funds require a one-to-one match, and the Board has previously approved using Regional Development Impact Fees in the amount of $250,000.  To receive these funds which are administered by the Transportation Agency, the County of Monterey is required to enter into a Funding Agreement with the Transportation Agency (Attachment).

The funding agreement sets forth the agreed upon expected benefits, project scope, schedule, and cost, and also identifies the parties responsible for meeting reporting requirements and implementing the project. In this case, the Transportation Agency is the administrator of the funds, and the County of Monterey will be the project sponsor responsible for implementation and reporting.

If approved by the Board of Directors, the County of Monterey will bring the agreement forward to the Board of Supervisors for consideration and approval.  Once finalized, the County will be able to begin incurring reimbursable expenses on the project.  The Local Partnership Program funds have an expenditure deadline of June 30, 2023.