On the May 31, 2017 Caltrans Local Assistance Monthly Activity Report, the Agency was notified of a $1.17 million balance in federal Regional Surface Transportation Program funds. After researching the issue with Caltrans Local Assistance and Subvention Management, it was determined that these funds were initially obligated for use in 2004 but went unused, and have since been de-obligated. The Transportation Agency participates in the State's Regional Surface Transportation Program Exchange, whereby federal RSTP funds are exchanged for State funds that allow more flexibility in use. However, since the funds in question were de-obligated, they are not eligible for the Exchange program and remain federal funds.
Currently, Caltrans has Obligation Authority to program these funds until June 30, 2017. Obligation Authority is a federal limitation placed on the amount of funds that a State may spend against its apportionments of federal funds within a given fiscal year. After June 30, the funds could potentially be subject to the federal rescission process, where some amount of the unused funds lapse. Caltrans would then receive Obligation Authority again on the remaining balance of the funds in May 2018.
In order to program these federal Regional Surface Transportation Program funds by June 30, 2017, there are several criteria that need to be met for a project:
- The project needs to be programmed currently with other federal funds;
- The project needs to be listed in the Federal Transportation Improvement Program; and
- The use of the funds needs to cover a cost increase, rather than supplanting existing project funds.
Based on those criteria, the project that is best suited to use these funds would be the County of Monterey's Castroville Bicycle and Pedestrian Path and Railroad Crossing. This project is currently programmed with $6.637 million in federal State Transportation Improvement Program funds, and because of that is listed in the Federal Transportation Improvement Program. The project is also in need of $928,932 of additional funds to cover cost increases related to lighting and architectural treatments.
For the remaining balance of federal Regional Surface Transportation Program funds ($248,249), Transportation Agency staff is coordinating with the County of Monterey to shift local funds to the Holman Highway 68 Roundabout project to cover a portion of the additional $400,000 in funding needed for that project. The cities of Monterey and Pacific Grove are anticipated to cover the remaining additional costs for the roundabout project. The Holman Highway 68 Roundabout project is not currently federalized, so Agency staff is proposing to shift local funds to that project, and use the full balance of federal Regional Surface Transportation Program funds on Castroville. This federal funding request would be contingent upon the County's ability to shift local funds to the Holman Highway 68 Roundabout.
To program these federal Regional Surface Transportation Program funds, the County of Monterey needs to submit a revised Finance Letter to Caltrans Local Assistance demonstrating the use of the funds. For the federal match requirement of 11.47%, the County is eligible to use toll credits as match. Caltrans Local Assistance will then review and submit the request to Caltrans Headquarters, which will have final approval over the use of the funds.