Item Coversheet

Agenda Item 5.

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TRANSPORTATION AGENCY FOR MONTEREY COUNTY
Memorandum
To: 

Technical Advisory Committee

From:

Michael Zeller, Director of Programming & Project Delivery

Meeting Date:

August 3, 2017

Subject:

Measure X Implementation

RECOMMENDED ACTION:
RECEIVE an update on the coordination activities necessary between the Transportation Agency and local jurisdictions in order to implement Measure X.
SUMMARY:
On December 6, 2016, the Monterey County Board of Elections certified that Measure X passed with 67.71% of the vote. The sales tax started being collected on April 1, 2017 and revenues will be available to the jurisdictions by September 2017. Prior to that, the Transportation Agency will work with the jurisdictions to set up the agreements, pavement management program, financial accounts, and other items required by Measure X's implementing ordinance.
FINANCIAL IMPACT:
Measure X is estimated to generate $600 million over 30 years for transportation improvements in Monterey County. Of that amount, $360 (60%) is distributed to the local jurisdictions for road maintenance, while the remaining $240 (40%) is programmed to regional safety and mobility projects.
DISCUSSION:

With the passage of Measure X by the voters of Monterey County, Transportation Agency staff has been working to develop the organizational frameworks and agreements necessary to implement the measure in advance of revenues being available by September 2017. As required by the implementing ordinance, each city and the County of Monterey must enter into a funding agreement with the Transportation Agency. That agreement includes enforcement procedures, designed to reassure the public that tax revenues are spent in accordance with the ballot language. As of this meeting, all of the jurisdictions have approved the agreement with the exception of the City of Monterey and County of Monterey, which are both scheduled to consider approval on August 15 and 29 respectively.

 

The expenditure of Measure X revenues by the cities or the County will be subject to verification and an annual independent audit reviewed by the Transportation Agency for Monterey County. Failure by a jurisdiction to meet any of the conditions will result in the suspension of the distribution of funds to the deficient city/county. Resumption of funding distribution to the deficient city/county will resume only after full repayment for any misuse, and confirmation of compliance with the funding agreement by the Transportation Agency for Monterey County.

 

In order to confirm compliance with the tax sharing agreement, each jurisdiction will submit a package of documents.  The first set of documents due by August 31, 2017 are the Maintenance of Effort and Five Year Capital Improvement Program reports.  The full set of documents will be due by December 31st of each year, starting December 31, 2018. The documents will then be reviewed by Transportation Agency staff and the Citizens Oversight Committee, as well as be presented to the Transportation Agency Board. That package of documents include:

 

REPORTS DUE AUGUST 31, 2017:

  • Maintenance of Effort Report: A report to be adopted by each jurisdiction verifying that Measure X funds received by the reporting jurisdiction have been used to augment, and not supplant, local resources spent in the fiscal year
  • Measure X Five Year CIP: A Capital Improvement Program looking forward for the next five (5) years that specifically references projects anticipated to be funded by Measure X.

 

REPORTS DUE ANNUALLY STARTING DECEMBER 31, 2018

  • Annual Program Compliance Report: The Annual Program Compliance Report describes the efforts taken by the jurisdiction to comply with the requirements for the receipt and use of Measure X funds by detailing the expenditures and transportation improvements that occurred the prior fiscal year.
  • Annual Independent Audit: The local jurisdiction shall complete an independent audit of the jurisdiction's financial statements for the prior fiscal year ended June 30th of Measure X funds received and expended.
  • Pavement Management Report: A report on the pavement conditions of the local jurisdiction, using the standardized Pavement Condition Index.
  • Maintenance of Effort:  As described above.
  • Measure X Five Year CIP:  As described above.

 

Additionally, the funding agreement requires the jurisdiction to post signs notifying the public of any roadway project funded by Measure X.  Agency staff has prepared a draft template of a "Funded by Measure X" sign for the Committee's review and feedback.  That template is included as Attachment 1.

ATTACHMENTS:
Description
Funded by Measure X - Sign Template