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Home My WebLink About16 - Annual Measure M2 Eligibility SubmittalQ �EwPpRT CITY OF s NEWPORT BEACH `q44:09 City Council Staff Report June 11, 2024 Agenda Item No. 16 TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: David A. Webb, Public Works Director - 949-644-3311, dawebb@newportbeachca.gov PREPARED BY: Theresa Schweitzer, Public Works Finance/Administrative Manager - 949-644-3335, tchweitzer@newportbeachca.gov TITLE: Annual Measure M2 Eligibility Submittal ABSTRACT: The City of Newport Beach must annually submit certain documents in order to maintain eligibility to receive Measure M2 Fair Share and Competitive funding from the Orange County Transportation Authority (OCTA). The submittal documentation this year requires approval of an updated Measure M2 Seven -Year Capital Improvement Program (CIP). RECOMMENDATIONS: a) Determine this 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 this action will not result in a physical change to the environment, directly or indirectly; b) Adopt the Measure M2 Seven -Year Capital Improvement Program; and c) Direct staff to submit all necessary materials to OCTA to satisfy the FY 2024-25 Measure M2 annual eligibility requirements. DISCUSSION: On November 7, 2006, Orange County voters approved Ordinance No. 3, the Renewed Measure M (M2) multi -billion -dollar program extension of the original Measure M. M2 authorized the imposition of a one-half cent retail transaction and use tax for a period of 30 years, starting in 2011. Current M2 legislation provides local agencies with 18% of the sales tax revenue collected under a program called "Fair Share." The distribution to each local agency is based on a formula using population, miles of existing arterial highways located within each jurisdiction, and taxable sales. A forecast of Local Fair Share Funds was released by OCTA in April 2024 and the City' s apportionment is approximately $2.7 million in FY 2024-25 for local street projects under the Fair Share Program. To maintain eligibility for Measure M2 funds, the City must satisfy the following requirements by June 30, 2024: 16-1 Annual Measure M2 Eligibility Submittal June 11, 2024 Page 2 Adopt a Measure M2 Seven -Year CIP that includes all projects to be funded partially or fully by Measure M2 dollars (Attachment A); and 2. Submit all other required documentation required by OCTA Fiscal Year 2024-25 Measure M2 Eligibility Guidelines. The budgets shown on the Measure M2 Seven -Year CIP for Fiscal Years 2024-2025 to 2030-2031 are estimated based on anticipated spending and historic needs. The budget for Fiscal Year 2024-2025 is included in the proposed Capital Improvement Program budget for City Council adoption on June 11, 2024. Actual budgets for future years have not yet been established. A standard item included in the City' s annual eligibility documentation is a Maintenance of Effort (MOE) Certification. This required certification is meant to ensure that the local jurisdiction maintains a minimum level of local street and road expenditures and that the M2 funds are used to supplement, rather than replace, local funds. The City has complied with this and all other eligibility requirements since the inception of the Measure M2 program. The FY 2024-25 MOE benchmark for the City was established at $14,292,404. The MOE benchmark was most recently adjusted in 2023 and is adjusted every three years. Historically, the City exceeds the benchmark by a considerable amount. Last year's MOE expenditures totaled $15.9 million. Upon the City Council' s approval of the recommended actions, the City's completed eligibility packet will be transmitted to OCTA by the June 30, 2024, submission deadline. FISCAL IMPACT: Submittal of the eligibility documentation ensures that the City will continue to receive its Fair Share portion of the Measure M2 funds, as well as allow the City to participate in receiving additional funds through the Measure M2 Competitive grant funding programs. This amounts to several million dollars in roadway -related funding each year and is a key part of the City's roadway maintenance program. Annually, OCTA prepares a 7-year funding estimate (see table below). Year over year increases are projected around 4 percent. Estimated Measure M2 Local Fair Share Program Funding FY2024-25 FY2025-26 FY2026-27 FY2027-28 FY2028-29 FY2029-30 FY2030-31 7 Year Estimate $2,673,402 $2,927,173 $3,010,969 $3,107,652 $3,175,639 $3,302,561 $3,435,187 $21,632,583 16-2 Annual Measure M2 Eligibility Submittal June 11, 2024 Page 3 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). ATTACHMENT: Attachment A — Measure M2 Seven -Year Capital Improvement Program 16-3 ATTACHMENT A Orange County Transportation Authority FY 2024/25 - FY 2030/31 Capital Improvement Program ITIPin IMPLEMENTING AGENCY Newport Beach, City of Local Project Number: 20-NBCH-CBT-3956 Additional Project IDs: Type of Work: Transit Type of Work Description: Transit - Service Planning Limits Balboa Island and Corona del Mar Project Notes Other - Contributions. Last Revised: 24-00 - In Progress Project Title Balboa Island/Corona del Mar Microtransit Feasibility Study Project Description This project prepares a study to review the feasibility of a local transit program to serve the Balboa Island and Corona del Mar Communities. FISCAL TOTAL YEAR FUND TYPE ENG ROW CON/IMP O&M TOTAL ESCALATED 2025 PROJECT V - Community $0 $0 $0 $30,204 $30,204 $30,204 Circulators 2025 Other $0 $0 $0 $3,356 $3,356 $3,356 Totals: $0 $0 $0 $33,560 $33,560 $33,560 Total Programmed: $33,560I - - ---- IMPLEMENTING AGENCY Newport Beach, City of Local Project Number: 16-NBCH-CBT-3832 Additional Project IDs: Type of Work: Transit Type of Work Description: Transit - Operations and Maintenance Limits Balboa Peninsula Project Notes Other - Balboa Village Parking Management District fund. Last Revised: 24-00 - In Project Title Balboa Peninsula Trolley Project Description Shuttle program for the Balboa Peninsula area. FISCAL TOTAL YEAR FUND TYPE ENG ROW CON/IMP O&M TOTAL ESCALATED 2025 Other $0 $0 $0 $175,354 $175,354 $175,354 2025 PROJECT V - Community $0 $0 $0 $653 $653 $653 Circulators Totals: $0 $0 $0 $176,007 $176,007 $176,007 Total Programmed: $176,0071 ITIP ID CP-10959 IMPLEMENTING AGENCY Newport Beach, City of Local Project Number: 18-NBCH-CBT-3913 Project Title Additional Project IDs: Balboa Peninsula Trolley Expansion Type of Work: Transit Project Description Type of Work Description: Transit -Operations dMit Provide trolley service for an additional 5 weekends in August through to Labor Day an an enance Limits FISCAL FUND TYPE ENG ROW CON/IMP O&M TOTAL TOTAL Balboa Peninsula YEAR ESCALATED Project Notes 2025 Other $0 $0 $0 $67,529 $67,529 $67,529 Other: Balboa Village Parking Management District 2025 PROJECT V - Community $0 $0 $0 $46,195 $46,195 $46,195 Circulators Totals: $0 $0 $0 $113,724 $113,724 $113,724 Last Revised: 24-00 - In Progress Total Programmed: $113,724 16-4 TIP ID CP-11932 IMPLEMENTING AGENCY Newport Beach, City of Local Project Number: 20-NBCH-ECP-3986 Project Title Additional Project IDs: Newport Bay Trash Wheel Type of Work: Environmental Cleanup Project Description Type of Work Description: Environmental Trash interceptor collection vessel that captures trash floating in San Diego Creek from inland Orange Cleanup - Marina Trash Skimmer County into Newport Bay. Limits FISCAL FUND TYPE YEAR TOTAL ENG ROW CON/IMP O&M TOTAL ESCALATED San Diego Creek Upstream of Jamboree Road Bridge 2025 Environmental Cleanup Program (ECP) - Tier 1 $0 $0 $500,000 $0 $500,000 $515,000 Project Notes Other - Upper Newport Bay Restoration fund, 2025 Other $0 $0 $1,957,394 $0 $1,957,394 $2,016,116 Contributions, and Environmental Liability fund. Last Revised: 24-00 - In Progress Totals: $0 $0 $2,457,394 $0 $2,457,394 $2,531,116 Total Programmed: $2,457,3941 16-5 TIP ID CP-10982 IMPLEMENTING AGENCY Newport Beach, City of Local Project Number: N/A Project Title Additional Project IDs: Various Pavement Rehabilitation Projects Type of Work: Road Maintenance Project Description Type of Work Description: Road Maintenance - Various pavement rehabilitation projects as determined by the Pavement Management Program and Rehabilitation of roadway field reviews for FY24/25 through FY30/31. Limits FISCAL YEAR FUND TYPE ENG ROW CON/IMP O&M TOTAL TOTAL ESCALATED Citywide Project Notes 2025 General Fund $1,246,824 $0 $11,221,414 $0 $12,468,238 $12,804,880 General Fund: 32.5% Measure M2 Local 2025 Measure M2 Local Fairshare $639,076 $0 $5,751,689 $0 $6,390,765 $6,563,316 Fairshare: 16.6% Other: 33.0% Local Streets and Roads apportionments: 9.8% Gas Tax: 8.1% 2025 Gas Tax $309,637 $0 $2,786,733 $0 $3,096,370 $3,179,972 2025 Other $1,267,415 $0 $11,406,739 $0 $12,674,154 $13,016,356 Local Streets and 2025 Roads $376,790 $0 $3,391,115 $0 $3,767,905 $3,869,638 apportionments Local Streets and 2026 Roads $241,200 $0 $2,170,800 $0 $2,412,000 $2,544,202 apportionments 2026 General Fund $526,200 $0 $4,735,800 $0 $5,262,000 $5,550,410 2026 Measure M2 Local Fairshare $300,000 $0 $2,700,000 $0 $3,000,000 $3,164,430 2026 Gas Tax $320,000 $0 $2,880,000 $0 $3,200,000 $3,375,392 2026 Other $40,000 $0 $360,000 $0 $400,000 $421,924 2027 Other $40,000 $0 $360,000 $0 $400,000 $433,382 2027 General Fund $492,500 $0 $4,432,500 $0 $4,925,000 $5,336,012 Local Streets and 2027 Roads $211,300 $0 $1,901,700 $0 $2,113,000 $2,289,339 apportionments 2027 Gas Tax $230,000 $0 $2,070,000 $0 $2,300,000 $2,491,945 2027 Measure M2 Local Fairshare $299 000 $0 $2,691,000 $0 $2,990,000 $3,239,528 2028 Measure M2 Local Fairshare $300,000 $0 $2,700,000 $0 $3,000,000 $3,338,874 2028 Gas Tax $174,700 $0 $1,572,300 $0 $1,747,000 $1,944,338 2028 General Fund $495,000 $0 $4,455,000 $0 $4,950,000 $5,509,142 2028 Other $40,000 $0 $360,000 $0 $400,000 $445,183 Local Streets and 2028 Roads $249,000 $0 $2,241,000 $0 $2,490,000 $2,771,265 apportionments 2029 Gas Tax $286,700 $0 $2,580,300 $0 $2,867,000 $3,277,975 2029 Measure M2 Local Fairshare $300,000 $0 $2,700,000 $0 $3,000,000 $3,430,040 2029 Other $40,000 $0 $360,000 $0 $400,000 $457,339 Local Streets and 2029 Roads $223,100 $0 $2,007,900 $0 $2,231,000 $2,550,806 apportionments 2029 General Fund $492,500 $0 $4,432,500 $0 $4,925,000 $5,630,982 Local Streets and 2030 Roads $156,000 $0 $1,404,000 $0 $1,560,000 $1,832,449 apportionments 2030 Gas Tax $191,500 $0 $1,723,500 $0 $1,915,000 $2,249,449 2030 Measure M2 Local Fairshare $300,000 $0 $2,700,000 $0 $3,000,000 $3,523,941 2030 General Fund $477,900 $0 $4,301,100 $0 $4,779,000 $5,613,638 2031 Gas Tax $189,550 $0 $1,705,950 $0 $1,895,500 $2,287,653 2031 General Fund $485,200 $0 $4,366,800 $0 $4,852,000 $5,855,813 Local Streets and 2031 Roads $239,100 $0 $2,151,900 $0 $2,391,000 $2,885,666 apportionments 2031 Measure M2 Local Fairshare $300,000 $0 $2,700,000 $0 $3,000,000 $3,620,659 Totals: $11,480,192 $0 $103,321,740 $0 $114,801,932 $125,505,938 (Last Revised: 24-00 - In Progress Total Programmed: $114,801,932 16-6 TIP ID CP-12393 IMPLEMENTING AGENCY Newport Beach, City of Local Project Number: N/A Project Title Additional Project IDs: Various Transportation Projects Type of Work: Traffic Signals Project Description Type of Work Description: Traffic Signals- Replace and upgrade traffic signals and equipment Various Transportation Projects regarding signage, striping, marking, and signal rehabilitation. Limits FISCAL YEAR FUND TYPE ENG ROW CON/IMP O&M TOTAL TOTAL ESCALATED Citywide 2025 Gas Tax $17,200 $0 $154,800 $0 $172,000 $176,644 Project Notes 2025 General Fund $234,700 $0 $2,112,300 $0 $2,347,000 $2,410,369 Gas Tax - 2% General Fund - 98% 2026 General Fund $107,500 $0 $967,500 $0 $1,075,000 $1,133,921 2027 General Fund $107,500 $0 $967,500 $0 $1,075,000 $1,164,713 2028 General Fund $105,000 $0 $945,000 $0 $1,050,000 $1,168,606 2029 General Fund $107,500 $0 $967,500 $0 $1,075,000 $1,229,098 2030 General Fund $107,000 $0 $963,000 $0 $1,070,000 $1,256,872 2031 General Fund $107,000 $0 $963,000 $0 $1,070,000 $1,291,369 Totals: $893,400 $0 $8,040,600 $0 $8,934,000 $9,831,592 Last Revised: 24-00 - In Progress Total Programmed: $8,934,OOO1 IPnoi GnnGniTmiG AGENCY Newport Beach, City Local Project Number: 20-NBCH-ICE-3966 Project Title Additional Project IDs: West Coast Highway Intersection Improvements and Pedestrian Bridge Type of Work: Bridge Project Description Type of Work Description: Bridge -Construction Construction of a 240 feet long bicycle and pedestrian bridge over heavily trafficked, 8 lane Superior of new bridge crossing Avenue. Includes new landings on the south-east and north-east corners of the intersections, as well as site improvements. Limits FISCAL TOTAL FUND TYPE ENG ROW CON/IMP O&M TOTAL Bridge will span Superior Ave at the intersection of YEAR ESCALATED Pacific Coast Hwy and Balboa Blvd 2025 Project Notes 2029 2029 2029 Last Revised: 24-00 - In Progress PROJECT V- Community Circulators $1,400 $0 $0 $0 $1,400 $1,400 Community PROJECT V - Community Circulators $0 $0 $14,709,500 $0 $14,709,500 $17,052,342 Agency Contribution $0 $0 $7,420,500 $0 $7,420,500 $8,602,393 Traffic Impact Fees $0 $0 $500,000 $0 $500,000 $579,637 Totals: $1,400 $0 $22,630,000 $0 $22,631,400 $26,235,772 Total Programmed: $22,631,400� 16-7 Measure M Seven Year Capital Improvement Program For Fiscal Years 2024-2025 through 2030-2031 City of Newport Beach Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Estimated Project Name 24/25 25/26 26/27 27/28 28/29 29/30 30/31 Cost Fund Source % Various Pavement 110,900 0 0 0 0 0 0 110,900 Contributions 0.1% Rehabilitation Projects 3,096,370 3,200,000 2,300,000 1,747,000 2,867,000 1,915,000 2,391,000 17,516,370 Gas Tax 15.3% 12,468,238 5,262,000 4,925,000 4,950,000 4,925,000 4,779,000 4,852,000 42,161,238 General Fund 36.7% 6,390,765 3,000,000 2,990,000 3,000,000 3,000,000 3,000,000 3,000,000 24,380,765 Measure M Fair Share 21.2% 9,468,423 0 0 0 0 0 0 9,468,423 Neighborhood Enhancement 8.2% 1,164,000 0 0 0 0 0 0 1,164,000 Oceanfront 1.0% 3,831 0 0 0 0 0 0 3,831 Pacific Coast Highway Fund 0.0% 400,000 400,000 400,000 400,000 400,000 0 0 2,000,000 Parks Maintenance Master Plan 1.7% 3,767,905 2,412,000 2,113,000 2,490,000 2,231,000 1,560,000 1,895,500 16,469,405 SB1 - RMRA 14.3% 1,100,000 0 0 0 0 0 0 1,100,000 Tide and Submerged Lands - Capita 1.0% 400,000 0 0 0 0 0 0 400,000 Water 0.3% 27,000 0 0 0 0 0 0 27,000 Wastewater 0.0% Subtotal 38.397.432 14.274.000 12.728.000 12.587.000 13.423.000 11.254.000 12.138.500 114.801.932 Total 100.0% Various Transportation Projects Balboa Peninsula Summer Trolley Project (17T13) E C/I Subtotal Subtotal Balboa Peninsula Summer Trolley Expansion Program (19T13) Subtotal 3,839,743 1,427,400 1,272,800 1,258,700 1,342,300 1,125,400 1,213,850 34,557,689 12,846,600 11,455,200 11,328,300 12,080,700 10,128,600 10,924,650 172,000 0 0 0 0 0 0 172,000 Gas Tax 2,347,000 1,075,000 1,075,000 1,050,000 1,075,000 1,070,000 1,070,000 8,762,000 General Fund 2,519,000 1,075,000 1,075,000 1,050,000 1,075,000 1,070,000 1,070,000 8,934,000 Total $653 $653 M Comp $175,354 $175,354 Balboa Village Pkg Mgmt District $176,007 $176,007 Total 46,195 46,195 M Comp 67,529 67,529 Balboa Village Pkg Mgmt District 113,724 113,724 Total 2% 98% 0% 100% 100% 41% 59% 100% I:\Users\PBW\Shared\COUNCIL\FY 23-24\21 -Jun 11\Measure M2\M2_FY 24-25 7-yr CIP_TAS2 TGS 05/31/2024 16-8 Measure M Seven Year Capital Improvement Program For Fiscal Years 2024-2025 through 2030-2031 City of Newport Beach Balboa Island/Corona del Mar 30,204 Microtransit Feasibility Study (21T13) 3,356 Subtotal 33,560 30,204 M Comp 3,356 Contributions 33,560 Total 90% 10% 100% Newport Bay Water Wheel 943,630 943,630 Contributions 38% (17X12) 1,013,754 1,013,754 Environmental Liability 41% 500,000 500,000 M Comp 20% 10 10 Tidelands 0% Subtotal 2,457,394 2,457,394 Total 100% West Coast Hwy Intersection 1,400 14,709,500 14,710,900 M Comp. 65% Improvements and Pedestrian 0 7,420,500 7,420,500 FFP: Parks 33% Bridge (21 R16) 500,000 500,000 Transportation & Circulation 2% Subtotal 1,400 22,630,000 22,631,400 Total 100% TOTAL PROJECTED BUDGET 43,698,517 15,349,000 13,803,000 13,637,000 37,128,000 12,324,000 13,208,500 149,148,017 I:\Users\PBW\Shared\COUNCIL\FY 23-24\21 -Jun 11\Measure M2\M2_FY 24-25 7-yr CIP_TAS2 TGS 05/31/2024 16-9 111110 Er MEMMI ...�MENKE=�� 16-10