Transportation Bond: A Fair Share

1
Transportation Bond A Fair Share

• ASCE California Infrastructure Symposium
• February 5, 2007

2
MTC A Regional Perspective

• Many People and Transportation Needs
• 7 million people live in 7,100 square mile Bay
  Area
• 4.5 million cars and 4,300 transit vehicles
• 19,600 miles of local streets, 1,400 miles of
  highways, 300 miles of carpool lanes and 8 toll
  bridges
• Many Players Involved in Decision-Making
• 101 cities and nine counties
• Congestion Management Agencies (CMA) recommend
  projects in the STIP for each county
• Sales tax authorities often the same as CMA,
  but not always
• Transit agencies over 22 agencies, but majority
  of riders on 4 systems
• Bay Area Partnership Board brings these entities
  together to review and advise on MTC policies

3
Proposition 1B Transportation Bond
Dollars in billions
4
Bay Area Transportation Needs Are Significant

• In Long-Range Plan, Funding Shortfall near 18
  Billion
• 80 percent of the regions funds will go to
  maintain our existing road and transit system.
• Even with passage of November 2006 bond, large
  shortfalls remain.

5
Proposition 1B Transportation Bond

• Bay Area guaranteed 2 billion in funding

1,334
Millions of Dollars
6
Corridor Mobility Improvement Account (CMIA)

• Largest single fund source in Proposition 1B
• Focused on relieving highway congestion and
  interregional improvements.
• 4.5 billion statewide, but subject to N/S split
  of 60 for states southern counties, 40 for
  northern counties.
• Translation Maximum of 1.8 billion for northern
  counties.

7
CMIA Focus on Congestion

• The Bay Area is home to 85 of congestion in
  Northern California

• Last year for which statewide data has been
  published
• Data for 2003 are estimated. District did not
  perform monitoring in 2003.

8
CMIA Bay Area Proposal

• Total Investment in Key Projects - 4.5 billion
• Needs far exceed 1.8 billion North target
• MTC submitted 2.0 billion in high priority
  projects for CMIA consideration
• Leverages over 1.3 billion in existing funding
• Mix of Proposition 1B funds to help round out
  funding package
• Comprehensive Strategy includes CMIA, Trade and
  ITIP bond categories developing key trade links
  and interregional goods movement corridor
  improvements

9
Investing inKey Corridors
4
10
CMIA Bay Area Proposal
Proposal addresses delay in key regional and
interregional corridors throughout Bay Area
11
Carpools and Connectivity Bay Area Investments
Benefit State

• Proposal would add over 100 miles in carpool
  lanes providing mobility and congestion relief
  benefit in the Bay Area and neighboring regions
• Other congestion strategies, such as adding
  auxiliary lanes and implementing ramp metering
  key
• Safety and Connectivity
• Doyle Drive Replacement
• SR 12 Jamieson Canyon Widening
• SR 24 Caldecott Tunnel 4th Bore
• Addresses explosive growth projections in two key
  national and international goods movement
  corridors I-80 and I-580

12
Partnering With the State to Relieve Congestion

• Bay Area roads third most congested in the
  nation
• Bay Area CMIA proposal includes over 100 miles of
  new carpool lanes increasing regions carpool
  network by over 30
• Advanced planning, innovative project delivery
  approaches and interagency partnering deliver
  projects in the Bay Area
• Source California Travels Financing Our
  Transportation Legislative Analysts Office
  January 2007

13
Bay Area ProposalState Benefits

• Large projected increases in traffic volume
  (auto and truck) - especially connecting with
  other regions.
• Beyond Bay Area Benefits
• I-580 benefits the Central Valley
• Hwy 4 and I-80/I-680 interchange improve access
  to the Bay Area from Sacramento.
• Hwy 101 Improvements gain access for the North
  Coast communities.

14
Partnering with StateLocal Sales Tax and STIP

• All Bay Area counties except Napa and Solano
• 23 billion over 30 years
• Bay Area home to only 20 of the states
  population, but generates 30 of local
  transportation sales tax, more with tolls

15
CMIA Tough Decisions Ahead for CTC

• 11 Billion in Project Requests from Caltrans and
  Regional Agencies
• Key Decisions
• How Much to Program?
• Emphasis Areas Urban versus Rural
• CTC to release Draft CMIA List on 2/16
• Hearing on Draft List on 2/20
• CTC to adopt final statewide list at its meeting
  on February 28

16
Transit and Streets and Roads Formula
Distribution

• Transit
• When Available?
• Governor's Budget includes 1.3 billion in bond
  funds to be distributed over 3 years, including
  600 million in 2007-08.
• How Distributed and Who Has Oversight?
• Administration proposes CTC oversight of eligible
  projects, subject to formula shares.
• Streets and Roads
• When Available?
• Governor's Budget includes 1.0 billion in bond
  funds to be distributed over 3 years, including
  600 million in 2007-08.
• How Distributed and Who Has Oversight?
• Administration interested in added oversight,
  subject to formula share.

17
Bond Requires Follow-up Legislation

• Implementing legislation is needed for the
  following new Prop. 1B programs
• State Local Partnership Program
• Advocate distribution in proportion to an
  agencys share of voter-approved transportation
  funds.
• Trade Corridors Air Quality
• Ensure that project eligibility and ranking
  criteria allow for Northern California to compete
  for fair share of funds.
• Transit Security
• Ensure that risk is key factor for fund
  distribution, while providing a minimum level for
  emergency response needs for all transit
  operators.

18
Why Freight, Why Here, Why Now?

• Port of Oakland 4th largest container Port in
  the U.S.
• Gateway to exploding Asia import trade
• expected doubling of Port capacity by 2020
• Gateway also for Central Valleys agricultural
  exports
• key economic sector for California

19
Transit Security Program

• Federal Homeland Security Funding comes in dribs
  and drabs
• MTC has advanced 31 million in other federal
  funds to help meet need
• Bond includes eligibility for waterborne
  disaster response i.e. spare ferry vessels,
  temporary docks

20
State-Local Partnership Program

• 1 billion new program, though same name as
  previous program
• 11 match of state funds for locally-generated
  revenues
• MTC is advocating for a program that rewards
  voters in direct proportion to how much revenue
  is raised.
• MTC is also advocating that voter-approved bridge
  tolls and transit property taxes should be
  eligible.

21
Project Delivery Tough Road Ahead for All
Sponsors

• Firm Award Deadline for CMIA of 2012
• Challenges
• Material Cost Increases Asphalt and Steel
• Low Number of Bidders
• Opportunities
• Fuel prices may be on the decline
• Repackaging projects into various segments could
  address some issues with bonding
• Sponsors and Construction Community Up for the
  Challenge To Deliver Transportation Projects!

22
For more information, contact Alix
BockelmanMTC Director of Programming and
Allocations510.817.5850 abockelman_at_mtc.ca.gov