The Policies and Project Descriptions for Measure X identified which projects and programs will receive Measure X revenue, and the amounts they will receive, but not the dates they will receive these funds. Recognizing that not all $600 million in projects can be delivered at the outset of the program, the Measure X Polices and Project Descriptions document requires that the Transportation Agency for Monterey County adopt a Strategic Plan that prioritizes the projects and establishes a timeline for their implementation within twelve months of the sales tax taking effect.
Staff considered five guiding principles in the development of the draft Strategic Expenditure Plan:
- Assure that the overall Measure X program of projects is delivered
- Maximize leveraging of Measure X revenue
- Control project and program costs
- Accelerate project delivery through financing, where appropriate
- Coordinate with Caltrans and Project Sponsors to complete pre-construction phases of regional projects as early in the program as feasible.
In order to determine the timing of funding for the regional projects, the Strategic Plan establishes the relative priority among the projects contained in the Measure X Transportation Safety & Investment Plan. This is a more complex task than appears on the surface since many of the Measure X projects rely upon some other funding sources for implementation. Additionally, only some of the improvements funded from Measure X represent regional projects, while others are categorical programs such as “Safe Routes to School” and transit programs. The largest component in Measure X however is the fixed percentage of sales tax revenue used to fund Local Road Maintenance. This latter category of allocated funds will flow directly to the designated recipients and as such does not require prioritization.
The prioritization criteria used to rank the regional projects were derived from the Policies and Project Descriptions document as well as from input from the Transportation Agency Board of Directors, and are as follows:
- Project Readiness
- Ability to Leverage Matching Funds
- Fair Geographic Distribution of Funds
- Project Need: Congestion Relief and Safety Benefits
- Cost Effectiveness & System Connectivity
With the projects rated, staff developed a cash flow model to determine the cost and schedule for the regional projects in Measure X, and identify possible financing tools needed to deliver the regional program. Based on this draft analysis and the over-arching goal of delivering projects as early in the Measure X program as necessary, staff included a round of potential debt financing in the first five years of the program. The use of debt financing and what mechanism could potentially be used (bonds, loans, etc.) will be determined at a later date, however the initial analysis confirms that a significant portion of the regional program could be completed within the first five years. The following four projects could start construction within the next five years, assuming the successful receipt of matching funds:
- State Route 68 Safety & Traffic Flow
- Marina-Salinas Multimodal Corridor
- Fort Ord Regional Trail and Greenway
- Holman Highway 68 – CHOMP Roundabout
At the September Board of Directors meeting, Agency staff received guidance from the Board on the list of projects and priorities. Agency staff then reviewed and received comments on the draft funding plan from the Technical Advisory and Executive Committees before bringing the proposal forward to the Board of Directors for review and comment at the October 25th meeting. The Transportation Agency Board is scheduled to adopt the final plan at their December meeting.