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Home My WebLink About03 - FY13 M2 Expenditure Report�•� �_.it, �- •iii�� it �t.�T'f F";r��,��ft Agenda Item No. 3 November 12, 2013 TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: Finance Department Dan Matusiewicz, Finance Director 949 - 644 -3123, DanM @newportbeachca.gov PREPARED BY: Cory Pearson, Accountant APPROVED: TITLE: Approval of Measure M2 Expenditure Report F-M-1 W7 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 31St of each year. Prior to submitting the accounting to OCTA, the M2 Expenditure Report must be adopted by resolution of the City Council. RECOMMENDATION: Adopt Resolution 2013- /4 approving the M2 Expenditure report, substantially to form, subject to technical revisions in conformance with OCTA guidelines. FUNDING REQUIREMENTS: There is no funding required by this action. However, if this report is not filed, OCTA could potentially suspend or delay M2 funding to the City. 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 Approval of Measure M2 Expenditure Report November 12, 2013 Page 2 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." 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). Submitted by: Z 4=�- Dan Matusiewicz Finance Director Attachments: Resolution 2013- RESOLUTION NO. 2013- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH CONCERNING THE MEASURE M2 EXPENDITURE REPORT FOR THE CITY OF NEWPORT BEACH 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 which satisfy the Maintenance of Effort requirements; and 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 ( "OCTA ") 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 informs 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, which is attached hereto and incorporated by reference, is hereby adopted for the City of Newport Beach. Section 2: 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.. Section 3: 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 12th day of November 2013. Keith Curry Mayor ATTEST: Leilani Brown City Clerk Attachment: M2 Expenditure Report City of Newport Beach ices at Begim ........................... a irshare ............................ irshare M2 CTFP Other M2 Fui M2 Expenditure Report Fiscal Year Ended June 30, 2013 Beginning and Ending Balances Description Fiscal Year at Beginning of Fisc iies Made Available ,vies Available (Sum ....... ............................... . mditures.During.E�s �jlEnd -''�j'�:,�, Yea —.1 ... ... . ...... ......... Fairshare , Fa i rs h a r e Interest. ........... ............................... ........... ............................... nt e re s (ear (Sum Lines I to ring Fiscal Year ................ .......... ies 8 & 9) Year * Please provide a specific description Line No. 1 2 3 4 9 12 13 14 .......... 15 .1611 Amount 777 Schedule 1 Revision No. 1 4/9/13 City of Newport Beach M2 Expenditure Report Fiscal Year Ended June 30, 2013 Sources and Uses Description Line Amount No. Revenuer. k ='..7_,��77 7e""j M2 Fairshare 1 $ 1,528,239 .. ...........,:..............................................................,.--_—,1.....,....,,..,......,,.....,.........................,, [M2 Fairshare Interest ....:._.. ...................... _................_............_............._............................_................................................... 2 ..............................: $ 4,505 ................._............. ..... €M2CTFP ........................:...... ... 3 $ 157,950 ...................... _................... _. _.........,.....................................,.. f M2 CTFP Interest ............................... 4 _............::...,......... .........:......................................................................................................................................................... :Other M2 Funding 5 ....... ............................... $ 110,461 Other M2 Interest 6 1. :Other* 1. 7 TOTAL REVENUES (Sum lines 1 to 7) 8 $ 1,801,156 Expenditures: .-- ................. ......_.............,.......... ,...,....,........... , ................. ............................... w" a w '_r.,_„, ......... iM2Fairshare 9. $ 74,934 .. _ .........:............................................................................................ .......... ............ ....................... W2 Fairshare Interest _ .......:. ..... -- ............ ....,........... ........... ................ - ........ .......... ........,.........,..................................... 10 .... -- ....... ......... ... ...... .......,........ $ 18,431 ............ .... .....,...... :M2CTFP 11 .......... .. ......... $ 157,950 M2 CFFP Interest 12 [ Other M2Funding 13 $ 110,461 :Other M2 Interest other "16$ TOTAL EXPENDITURES (Sum lines 9 to 15) 361,777 TOTAL BALANCE (Subtract line 16 from 8) 17 1 $ 1,439,379 * Please provide a specific description Schedule 2 Revision No. 1 4!9113 City of Newport Beach MZ Expenditure Report Fiscal Year Ended June 30, 2013 Streets and Roads Detailed Use of Funds Schedule 3 Type of Expenditure Line 'MOE + Developer / M2 Fairshare 2 CTFP Other M2 I � No. � I Impact Fees � M2 Fairshare Interest MZ CTFP I rote rest I Other MZ � Interest Other I TOTAL & Street Other Street Purpose Maintenance 15 2311971 .......... 10,330 '2 1 Total M a in t ena nc e : ��6 .... . . .. . . � 4 825 330 Other 1 GRAND TOTALS (Sum Lines 1, 10, 16,17) 18 12,725,678 $ 827,875 $ 74,934 $ 18,431 157,950 1 $ 110,461 13,915,330 ` Local funds used to satisfy maintenance of effort (MOE) requirements +Transportation related only I Includes direct charges for staff time Revision No. 1 419/13 City of Newport Beach Channel Island M2 Expenditure Report Fiscal Year Ended June 30, 2013 Fairshare Project List PROJECT NAME I AMOUNT EXPENDED Schedule 4 Revision No. 1 419113 City of Newport Beach M2 Expenditure Report Fiscal Year Ended June 30, 2013 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: of Finance Revision No. 1 4/9/13