TO: AC Transit Board of Directors
FROM: Salvador Llamas, General Manager/Chief Executive Officer
SUBJECT: A Resolution for AC Transit to Allocate Funds for Rapid Corridor Improvements: Macdonald Avenue and Cutting Boulevard Transit Improvement Project
ACTION ITEM
AGENDA PLANNING REQUEST: ☐
RECOMMENDED ACTION(S):
Title
Consider adoption of Resolution 26-031 authorizing the General Manager, or their designee, to submit an allocation request to the Metropolitan Transportation Commission (MTC) for Regional Measure 3 RM3 capital funds for MacDonald Avenue and Cutting Boulevard Transit Improvement Project.
Staff Contact:
Paul Kincaid, Interim Chief Financial Officer
Body
STRATEGIC IMPORTANCE:
Goal - Financial Stability and Resiliency
Initiative - Infrastructure Modernization
The adoption of this resolution would enable the allocation of Regional Measure 3 (RM3) funds to the Macdonald Avenue and Cutting Boulevard Transit Improvement Project. This will fully fund the project. The project is consistent with the District’s goals of convenient and reliable service, environmental improvement, and financial stability and resiliency.
BUDGETARY/FISCAL IMPACT:
The resolution and allocation request is for $3,000,000 for Construction for the Macdonald Avenue and Cutting Boulevard Transit Improvement Project. Securing these funds from MTC should complete the full funding plan for the project. This funding source does not require matching funds and can serve as the local match for other state and federal funding sources. This allocation request reduces potential future need of this project for District funds.
BACKGROUND/RATIONALE:
Voter-approved Regional Measure 3 (RM3) raised tolls on the region's seven state-owned toll bridges by $1 beginning January 1, 2019. RM3 will allocate $4.45 billion worth of highway and transit improvements in toll-bridge corridors and along their approach routes.
Tolls were increased by another $1 in January 2022 and another $1 increase in January 2025. The 2019 increase marked the first toll hike on the seven state-owned bridges since 2010. Since then, funds were placed in escrow pending resolution of lawsuits challenging Senate Bill 595 and RM3. These challenges were dismissed by the California Supreme Court in January 2023 and funds are now released from escrow. The Metropolitan Transportation Commission (MTC) began making RM3 allocations in June 2023. Prior AC Transit RM3 allocations were made for the Quick-Build Durant, MacArthur and International Projects and the Telegraph Rapid Corridors Project in December 2023, as well as the D6 Hydrogen Station Development Project and Training and Education Center Modernization Project in June 2025.
There are $100 million in total RM3 funds targeted for improvements in RM3’s Rapid Corridor Improvements program of projects. This allocation request is for a total of $3 million. Staff recommend $3 million for the Project be submitted to MTC for funding allocations under RM3’s Rapid Corridor Improvements program of projects in this Regional Measure.
Following AC Transit Board approval, this allocation must also be approved by the Alameda County Transportation Commission (ACTC) and the Metropolitan Transportation Commission (MTC). If approved, these funds will be available for the District to spend starting in November 2026. Once the allocation is approved, the District has six months to begin spending these funds. These projects are prepared to meet that timeline.
Staff would need to return to the Board to approve future RM3 allocations and plan to do so when RM3 eligible projects in its Capital Improvement Program are ready to proceed into their design or construction phases. RM3 funds are regional funds. They can be used as a local match for state and federal funding that requires matching funds.
ADVANTAGES/DISADVANTAGES:
This RM3 funding allocation would allow for full funding and therefore construction and completion of this capital project improving safety and accessibility, improving bus operations, and improving customer experience. It will improve AC Transit service along these corridors within the City of Richmond including signal upgrades, bus stop improvements, sidewalk repairs, and upgraded accessibility and pedestrian improvements.
The primary disadvantage is the need for staff resources to complete the construction of these projects.
ALTERNATIVES ANALYSIS:
The alternative to requesting this funding allocation would be to not submit a request and attempt to find another way to fully fund this project, to submit a request later or modify this request. The allocation request as drafted supplies needed funding for this project and maximizes the use of this funding source in line with the objectives of the RM3 program. Staff recommend proceeding with this allocation request. Delaying this allocation request would delay the start of Construction of this project.
PRIOR RELEVANT BOARD ACTION/POLICIES:
SR 23-384 Regional Measure 3 Capital Allocation
SR 25-324 Regional Measure 3 Capital Allocation
ATTACHMENTS:
1. Resolution 26-031
2. RM3 Allocation Request Forms
Prepared by:
Jesse Rosemoore, Senior Capital Planning Specialist
In Collaboration with:
Emily Heard, Capital Planning and Grants Manager
Sean DiestLorgion, Service Planning Manager
Wil Buller, Traffic Engineer
Approved/Reviewed by:
Richard Oslund, Director of Management & Budget
Paul Kincaid, Assistant General Manager/Chief Executive Officer
Aimee L. Steele, General Counsel/Chief Legal Officer