RECOMMENDATION

After receiving a presentation on transportation funding needs and revenues it is recommended that the Agency:

Authorize staff to complete an assessment of pavement conditions region wide.
Direct staff to prepare a letter to be signed by the Agency Chairman encouraging local agencies to review and update their traffic impact fees.
Direct staff to revisit transportation funding issues upon completion of the pavement assessment.

DISCUSSION

As part of preparing the 2001 Regional Transportation Plan (RTP) approximately $680 million of capacity increasing improvements were identified region wide. Also, due to State and Federal budget deficits, it appears very unlikely that the local agencies and Caltrans will be able to keep up with the demand for increased transportation facilities - due to lack of funding. As a result of these two issues, staff has performed a more comprehensive needs assessment region wide, with the purpose of beginning a dialogue or discussion about enhancing revenues for transportation. A discussion paper regarding this study is attached.

This review differs from earlier review in that it includes transit as well as streets and highways, maintenance costs, and revenue streams. Very high-level results of the study indicate that through the year 2025 there will be approximately $4 billion in transportation needs. In that same time period we have only been able to identify approximately $1.7B in revenues, leaving a shortfall of approximately $2.3 billion.

A presentation has been prepared to demonstrate to the Agency the impacts of projected traffic volumes on our facilities versus the current conditions. Currently the transportation systems throughout the region function very well, with very short periods of congestion. However, as we continue to utilize excess capacity on our roadways, motorists in Shasta County will begin to experience longer and longer periods of congestion. Additionally, the condition of the pavement throughout the region will continue to require periodic maintenance. It is apparent that motorists in the future will spend more time in congestion on poorer quality roads.

Staff does not believe the time is right now to present a sales tax measure to the voters. This presentation and any Agency action or direction should be considered as a start at looking at the problem. There are no easy solutions to this problem; however, it will certainly not be solved if we do not take the first step.

ALTERNATIVES

The Agency could choose to not accept the staff recommendation. The Agency could choose to modify the staff recommendation as they see fit. At this time this is not recommended because it is apparent that there is a need for additional funding for transportation, and the Agency should lay the foundation or groundwork for future revenue enhancements.

FINANCING

This item has no direct impact on the finances of the RTPA; however, any action decided upon could have a significant and profound effect on the transportation system of the future.

Daniel J. Kovacich, Executive Officer

DJK/jac

Attachments: Discussion Paper

Exhibit A