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HomeMy WebLinkAbout07 - Approval of Measure M2 Expenditure ReportP CITY OF 0 'sNEWPORT BEACH City Council Staff Report November 22, 2016 Agenda Item No. 7 TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: Dan Matusiewicz, Finance Director - 949-644-3123, dmatusiewicz@newportbeachca.gov PREPARED BY: Rukshana Virany, Accounting Manager rvirany@newportbeachca.gov PHONE: 949-644-3146 TITLE: Approval of Measure M2 Expenditure Report ABSTRACT: With the renewal of Measure M (M2), local jurisdictions, including the City, are required to submit an annual accounting of M2 revenue and expenditures to the Orange County Transportation Authority (OCTA) by December 31 of each year. Prior to submitting the accounting to OCTA, the M2 Expenditure Report must be adopted by resolution of the City Council. RECOMMENDATION: a) Determine that the action is exempt from the California Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) and 15060(c)(3) of the CEQA Guidelines because it will not result in a physical change to the environment, directly or indirectly. b) Adopt Resolution No. 2016-121, A Resolution of the City Council of the City of Newport Beach, California, Concerning the Measure M2 Expenditure Report for the City of Newport Beach for Fiscal Year Ending June 30, 2016. FUNDING REQUIREMENTS: There is no fiscal impact related to this item. However, if this report is not filed, OCTA could potentially suspend or delay M2 funding to the City. 7-1 Approval of Measure M2 Expenditure Report November 22, 2016 Page 2 DISCUSSION: In 1990, Orange County voters approved Measure M, a 20 -year program for local transportation improvements funded by half -cent sales tax and entrusted the newly created Orange County Transportation Authority (OCTA) to administer Measure M funds. Measure M was designed to fund transportation improvement projects in three major areas — freeways, streets and roads, and transit. The old Measure M Plan ended March 31, 2011. On November 7, 2006, Orange County voters renewed Measure M and Measure M2 (M2) was passed to keep the transportation improvements continuing for another 30 years until 2041. With the passage of M2, local agencies must continue to demonstrate eligibility. The M2 eligibility process began in the first quarter of FY 2010-11 and will continue on an annual basis. Local agencies were found conditionally eligible until all outstanding M2 requirements were met. One new requirement emphasizes financial accountability and requires each local agency to submit an expenditure report to the Orange County Transportation Authority (OCTA) each year. Specifically, Ordinance No. 3 of the Local Transportation Authority requires the following: "Local jurisdictions must adopt and provide an annual expenditure report to OCTA to account for M2 funds, developer/traffic impact fees, and funds expended by the jurisdiction to satisfy maintenance of effort requirements. The report is required within six months of each jurisdiction's fiscal year end. The report will include all M2 net revenue, fund balances and interest earned, and will identify expenditures by activity type and funding source." ENVIRONMENTAL REVIEW: Staff recommends the City Council find this action is not subject to the California Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) (the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment) and 15060(c)(3) (the activity is not a project as defined in Section 15378) of the CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3, because it has no potential for resulting in physical change to the environment, directly or indirectly. NOTICING: The agenda item has been noticed according to the Brown Act (72 hours in advance of the meeting at which the City Council considers the item). ATTACHMENTS: Attachment A — Measure M2 Expenditure Report Attachment B — Resolution 7-2 ATTACHMENT A M2 Expenditure Report 7-3 City of Newport Beach M2 Expenditure Report Fiscal Year Ended June 30, 2016 Beginning and Ending Balances Description Line No. Amount Balances at Beginning of Fiscal Year _ M2 Fairshare 1 A $ 3,295,537 M2 Fairshare Interest 2 M2 CTFP 3 $ (3,119,118) M2 CTFP Interest 4 Other M2 Funding 5 $ (1,497,317) Other M2 Interest 6 Other* 7 Balances at Beginning of Fiscal Year (Sum Lines 1 to 7) 8 $ (1,320,898) Monies Made Available During Fiscal Year 9 $ 7,564,359 Total Monies Available (Sum Lines 8 & 9) 10 $ 6,243,461 Expenditures During Fiscal Year 11 $ 3,520,898 Balances at End of Fiscal Year M2 Fairshare 12 $ 3,205,609 M2 Fairshare Interest 13 M2 CTFP 14 $ (428,677) M2 CTFP Interest 15 Other M2 Funding 16 $ (54,369) Other M2 Interest 17 Other* 18 * Please provide a specific description Line 1 Local Fairshare Adiustments - FY 14/15 Accrued Exoenditures: Ocean Blvd Concrete Overlay $ (146,557) Bay Ave Pavement Reconstruction $ (1,900) Campus/San Jouquin Hills/San Miguel Overlay $ (330,801) Dover Dr/Westcliff Dr Pavement Rehabilitation $ (136,322) $ (615,580) Line 3 CTFP Adiustment -Proiect "O" FY 14/15 Deferred Revenue: Newport Blvd/32nd St Modification $ (27,985) Line 5 Other M2 Funding Adjustments - Project "X" FY 14/15: Carnation Ave Storm Drain -Move Exp to Grant Match Fund $ 113,189 Storm Drain Interceptors -Staff Time $ (14,396) $ 98,793 CTFP - Comprehensive Transportation Funding Programs Schedule 1 7-4 City of Newport Beach M2 Expenditure Report Schedule 2 Fiscal Year Ended June 30, 2016 Sources and Uses Description Line No. Amount Revenues: Project Description 1 $ 1,769,001 M2 Fairshare M 2 Fairshare Interest 2 $ 37,141 M2 CTFP (Project 0) 3 $ 3,971,897 M2 CTFP Interest 4 $ 226 Other M2 Funding** 5 $ 1,785,175 Other M2 Interest 6 $ 919 Other* 7 $ TOTAL REVENUES (Sum lines 1 to 7) 8 $ 7,564,359 Expenditures: S $ 9 $ 1,858,929 M2 Fairshare M2 Fairshare Interest 10 $ 37,141 M2 CTFP (Project 0) 11 $ 1,281,456 M2 CTFP Interest 12 $ 226 Other M2 Funding** 13 $ 342,227 Other M2 Interest 14 $ 919 Other* 15 Safe Transit Stops TOTAL EXPENDITURES (Sum lines 9 to 15) 16 $ 3,520,898 TOTAL BALANCE (Subtract line 16 from 8) 17 $ 4,043,461 * Please provide a specific description ** Please provide breakdown of "Other M2 Funding". Other M2 Funding includes funding received and/or funds expended by Local Agencies from any other M2 program besides Project O (Regional Capacity Program) and Project Q (Local Fair Share Program). Revenues Project Description Project Description Project Amount Amount Interest Total Freeway Environmental Mitigation A -M $ - $ $ - Regional Traffic Signal Synchronization Program' P $ 422,222 $ $ 422,222 High Frequency Metrolink Service R $ - $ $ - Transit Extensions to Metrolink S $ $ $ $ $ Convert Metrolink Station(s) to Regional Gateways that connect Orange County with High -Speed Rail Systems Convert Metrolink Station(s) to Regional Gateways that connect Orange County with High -Speed Rail Systems T $ $ $ $ $ - Senior Mobility Program or Senior Non -Emergency Medical Program U $ 126,711 $ 919 $ 127,630 Community Based Transit/Circulators V $ - $ - $ Safe Transit Stops Safe Transit Stops W $ - $ $ Water Quality Program Water Quality Program X $ 1,236,242 $ $ 1,236,242 Total $ 1,785,175 $ 919 $ 1,786,094 Expenditures Project Description Project Amount Interest Total Freeway Environmental Mitigation A -M $ - $ $ Regional Traffic Signal Synchronization Program P $ 30,516 $ 30,516 High Frequency Metrolink Service R $ - $ $ - Transit Extensions to Metrolink S $ $ $ Convert Metrolink Station(s) to Regional Gateways that connect Orange County with High -Speed Rail Systems T $ $ $ - Senior Mobility Program or Senior Non -Emergency Medical Program U $ 126,711 $ 919 $ 127,630 Community Based Transit/Circulators V $ - $ - $ - Safe Transit Stops W $ - $ $ - Water Quality Program X $ 185,000 $ $ 185,000 Total $ 342,227 $ 919 $ 343,146 7-5 City of Newport Beach M2 Expenditure Report Schedule 2 Fiscal Year Ended June 30, 2016 Sources and Uses 1 Revenue received in FY 15/16 was $433,917. Unearned revenue of $11,695 was deferred in FY 15/16 and will be recognized in FY 16/17. 7-6 City of Newport Beach M2 Expenditure Report Fiscal Year Ended June 30, 2016 Streets and Roads Detailed Use of Funds Schedule 3 * Local funds used to satisfy maintenance of effort (MOE) requirements +Transportation related only 1 Includes direct charges for staff time 7-7 Line + Developer / M2 Fairshare M2 CTFP Other M2 Type of Expenditure No. *MOE Impact Fees M2 Fairshare Interest M2 CTFP Interest Other M2 Interest Other TOTAL Administration (Indirect & Overhead) 1 $ 10,376,193 $ 10,376,193 Construction & Right -of -Way New Street Construction 2 $ - Street Reconstruction 3 $ 3,578,843 $ 1,281,456 $ 226 $ 30,516 $ $ 4,860,525 1,352,137 Signals, Safety Devices, & Street Lights 4 $ 1,301,341 $ 20,280 Pedestrian Ways & Bikepaths 5 $ - Storm Drains 6 $ Storm Damage 7 $ - Total Construction' 8 4,880,184 20,280 1,281,456 226 30,516 $ 6,212,662 Right of Way Acquisition 9 $ - Total Construction & Right -of -Way 10 4,880,184 20,280 1,281,456 226 30,516 $ 6,212,662 Maintenance Patching 11 $ - Overlay & Sealing 12 $ 510,479 $ 181,460 $ 3,699 $ 695,638 Street Lights & Traffic Signals 13 $ - Storm Damage 14 $ $ - 5,368,900 Other Street Purpose Maintenance 15 3,260,738 $ 397,251 1,677,469 33,442 Total Maintenance' 16 3,771,217 397,251 1,858,929 37,141 - - - - $ 6,064,538 Other 17 311,711 919 $ 312,630 GRAND TOTALS (Sum Lines 1, 10, 16,17) 18 $ 19,027,594 $ 417,531 $ 1,858,929 $ 37,141 $ 1,281,456 $ 226 $ 342,227 $ 919 $ $ 22,966,023 * Local funds used to satisfy maintenance of effort (MOE) requirements +Transportation related only 1 Includes direct charges for staff time 7-7 City of Newport Beach M2 Expenditure Report Fiscal Year Ended June 30, 2016 Fairshare Project List PROJECT NAME CAMPUS/SAN JOUQUIN HILLS/SAN MIGUEL OVERLAY RESIDENTIAL OVERLAY DOVER DRIVE/WESTCLIFF DRIVE PAVEMENT REHABILITATION MAC ARTHUR BOULEVARD PAVEMENT AMOUNT EXPENDED 1,372 180,676 1,710,911 3,111 1,896,070 Schedule 4 W] City of Newport Beach M2 Expenditure Report Fiscal Year Ended .dune 30, 2016 Signature Page I certify that the interest earned on Net Revenues allocated pursuant to the Ordinance shall be expended only for those purposes for which the Net Revenues were allocated and all the information attached herein is true and accurate to the best of my knowledge: Dan Matusiewicz I ( — �, — / L© Director of Finance (Print Name) Date 1� 7-9 ATTACHMENT B RESOLUTION NO. 2016- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH, CALIFORNIA, CONCERNING THE MEASURE M2 EXPENDITURE REPORT FOR THE CITY OF NEWPORT BEACH FOR THE FISCAL YEAR ENDING JUNE 30, 2016 WHEREAS, Local Transportation Authority Ordinance No. 3 requires local jurisdictions to adopt an annual Expenditure Report to account for Net Revenues, developer/traffic impact fees, and funds expended by local jurisdiction that satisfy the Maintenance of Effort requirements; WHEREAS, the Expenditure Report shall include all Net Revenue fund balances, interest earned and expenditures identified by type and program or project; and WHEREAS, the Expenditure Report must be adopted and submitted to the Orange County Transportation Authority each year within six months of the end of the local jurisdiction's fiscal year to be eligible to receive Net Revenues as part of Measure M2. NOW, THEREFORE, the City Council of the City of Newport Beach resolves as follows: Section 1: The City Council does hereby inform OCTA that: a) The M2 Expenditure Report is in conformance with the M2 Expenditure Report Template provided in .the Renewed Measure M Eligibility Guidelines and accounts for Net Revenues including interest earned, expenditures during the fiscal year and balances at the end of fiscal year. b) The M2 Expenditure Report is hereby adopted by the City of Newport Beach. c) The City of Newport Beach's Finance Director is hereby authorized to sign and submit the Measure M2 Expenditure Report to OCTA for the fiscal year ending June 30, 2016. Section 2: The recitals provided in this resolution are true and correct and are incorporated into the operative part of this resolution. Section 3: If any section, subsection, sentence, clause or phrase of this resolution is, for any reason, held to be invalid or unconstitutional, such decision shall not affect the validity or constitutionality of the remaining portions of this resolution. The City Council hereby declares that it would have passed this resolution, and each section, subsection, sentence, clause or phrase hereof, irrespective of the fact that any 7-10 Resolution No. 2016 - Page 2 of 2 one or more sections, subsections, sentences, clauses or phrases be declared invalid or unconstitutional. Section 4: The City Council finds the adoption of this resolution is not subject to the California Environmental Quality Act ("CEQA") pursuant to Sections 15060(c)(2) (the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment) and 15060(c)(3) (the activity is not a project as defined in Section 15378) of the CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3, because it has no potential for resulting in physical change to the environment, directly or indirectly. Section 5: This resolution shall take effect immediately upon its adoption by the City Council, and the City Clerk shall certify the vote adopting the resolution. ADOPTED this day of 20_ Diane B. Dixon Mayor ATTEST: Leilani I. Brown City Clerk APPROVED AS TO FORM: CITY ATTORNEY'S OFFICE Aaron C.-Aarp City Attorney 7-11