Title
a. Approve a letter requesting that the Fort Ord Reuse Authority (FORA) increase the prioritization of the Davis Road South of Blanco transportation improvement project in FORA’s fiscal year 2018-2019 Capital Improvement Program and commit to fully fund FORA’s share of the project prior to FORA’s sunset (June 30, 2020); and
b. Authorize the Chair of the Board to execute the letter and authorize staff to transmit the executed letter to FORA in advance of FORA’s May 11, 2018 Board meeting.
Report
RECOMMENDATION:
The Fort Ord Committee recommends that the Board of Supervisors:
a. Approve a letter requesting that the Fort Ord Reuse Authority (FORA) increase the prioritization of the Davis Road South of Blanco transportation improvement project in FORA’s fiscal year 2018-2019 Capital Improvement Program and commit to fully fund FORA’s share of the project prior to FORA’s sunset (June 30, 2020); and
b. Authorize the Chair of the Board to execute the letter and authorize staff to transmit the executed letter to FORA in advance of FORA’s May 11, 2018 Board meeting.
SUMMARY:
At the April 26, 2018 Fort Ord Committee meeting, the committee received a status update regarding the Fort Ord Reuse Authority (FORA) transition planning efforts. During the discussion of this item, the committee expressed concerns that the Davis Road South of Blanco transportation improvement project may not receive full funding committed by FORA if FORA sunsets on June 30, 2020 per current legislation. There are some significant infrastructure projects planned for the unincorporated County area. FORA is currently working on a transition plan for how projects are completed after the sunset date.
The Fort Ord Committee set a special meeting for May 1, 2018 to consider making a recommendation to the Board of Supervisors to send a letter to FORA to request that FORA increase the prioritization of this project and commit to fully fund FORA’s share of the project prior to FORA’s sunset in 2020. At its May 1, 2018 Special Meeting, the Fort Ord Committee recommended that the Board of Supervisors approve and send a letter to FORA regarding Davis Road south of Blanco Road project prioritization and funding. The Committee also requested that the letter be scheduled for consideration at the May 8, 2018 Board of Supervisors’ meeting, so that the letter could be transmitted to FORA in advance of FORA’s May 11, 2018 Board of Directors meeting where the Board of Directors will be considering the FORA CIP for FY 2018-19.
FORA’s Draft CIP FY18-19: Table 2 listing the CIP transportation project prioritization and proposed funding level is included as Attachment 1. The proposed letter is attached as Attachment 2. It should be noted that shifting funds to the current fiscal year would impact other project(s) that are currently funded under the draft CIP. It is unknown how funding would be re-balance by the FORA Board if this occurs.
DISCUSSION:
The Davis Road South of Blanco transportation improvement project is undergoing final design, and the right-of-way acquisitions process has been started. The County anticipates advertising for bids for construction of the project in December 2019. The construction work is scheduled to begin in late spring of 2020. The County has certified an EIR for the project, completed 65% design, and initiated right-of-way acquisition.
In the proposed FORA Capital Improvement Program (CIP) for fiscal year 2018-2019 (FY18-19), FORA’s total contribution to the project is anticipated to be approximately $12.9 million over the next five fiscal years. For FY18-19, the Davis Road South of Blanco project is programmed to receive $750,000 to cover expenditures anticipated for the fiscal year. The remaining approximately $12.15 million is programmed over the subsequent four fiscal years, FY19-20 through FY2022-2023.
The FORA Board will be considering FORA’s Capital Improvement Program for fiscal year 2019-2020 (FY19-20) priorities at the May 11, 2018 Board of Directors meeting. FORA’s CIP is based on estimated revenue from development fees. The amount received depends on development occurring, since fees are paid at the time building permits are issued. A number of previously entitled projects are currently underway, including the County’s East Garrison project (Phase 3). This condition added to FORA’s legislated sunset date of June 30, 2020 creates uncertainty of availability of future Fort Ord Community Facility District funding (post-FORA).
OTHER AGENCY INVOLVEMENT:
Fort Ord Reuse Authority staff has prepared the draft Capital Improvement Program for Fiscal Year 2018-2019 and anticipates presenting the draft CIP to the FORA Board of Directors for consideration and approval at the May 11, 2018 FORA Board meeting.
FINANCING:
The total Davis Road/Bridge project is estimated to cost $68.3 million, with $12.9 million coming from FORA through developer fees. Being funded through developer fees depends on the level of development activity, which currently has increased. The future pace of development is uncertain and how funding will work post-FORA has not been determined.
The recommended action is intended to ensure FORA funds are available for the Davis Road South of Blanco project before FORA’s legislated sunset date of June 30, 2020. Current project estimates indicate that the project would be fully funded, including Federal Highway Administration (FHWA) funds, East Garrison Mitigation fees, and FORA Community Facility District (CFD) Special Tax Assessments.
BOARD OF SUPERVISORS STRATEGIC INITIATIVES:
The Davis Road/Bridge project is part of a multi-modal corridor that to help improve the quality of life for County residents improving connection to/from the Monterey Peninsula. It also supports economic development by collaborating with FORA to ensure a functional thoroughfare at Davis Road in order to promote the movement of goods and the delivery of services. As a multi-agency project, the recommended action promotes efficient and effective resource management.
X Economic Development
X Administration
__ Health & Human Services
X Infrastructure
__ Public Safety
Prepared by: Melanie Beretti, Special Programs Manager (831) 755-5285
Approved by: Carl P. Holm, AICP, RMA Director
Attachments:
Attachment 1: FORA Draft CIP FY18-19: Table 2
Attachment 2: Letter to FORA
(Attachments on file with the Clerk of the Board)