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Home My WebLink About04 - Measure M2October 28, 2014 Agenda Item No. 4 TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: Dan Matusiewicz, Finance Director —(949) 644 -3123, 6�lq dmatusiewicz @newportbeachca.gov PREPARED BY: Cory Pearson, Accountant (949) 644 -3243 TITLE: Measure M2 Expenditure Report SUPPLEMENTAL REPORT ABSTRACT: Staff is requesting that the Measure M2 Expenditure Report item be continued to a date uncertain. RECOMMENDATION: Continue the item to a date uncertain. CITY OF NEWPORT BEACH City Council Staff Report October 28, 2014 Agenda Item No. 4 TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: Dan Matusiewicz, Finance Director — (949) 644 -3123, dmatusiewicz @newportbeachca.gov PREPARED BY: Cory Pearson, Accountant PHONE: (949) 644 -3243 TITLE: 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 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 No. 2014 -90, A Resolution of the City Council of the City of Newport Beach Concerning the Measure M2 Expenditure Report for the City of Newport Beach for the Fiscal Year Ending June 30, 2014, 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 original 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 4 -1 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: Description Attachment A - M2 Expenditure Report Attachment B - Resolution 29 City of Newport Beach ATTACHMENT A Schedule 1 M2 Expenditure Report Fiscal Year Ended June 30, 2014 Beginning and Ending Balances Description Line NOTES: Amount 1 Prior year Project 0 funds unbilled (Old Newport Blvd. & PCH) No. Prior year Project 0 funds received in Sept. 2014 Unavailable (M $1,018,712.58 Balances at Beginning off i.s.c.a. l Year $ 1,035,146.96 2 Unspent prior years interest income $93,029.21 M2 Fairshare ............................................................................................................................................ 1 $ 2,982,952 ........... M2 Fairshare Interest 2 $ ............................... 4,505 .......... . ............................................................................................................................................ ': M2 CTFP' 3 $ ............................... (1,035,147) ..........:............................................................................................................................................ :M2 CTFP Interest' 4 ............................... $93,029.21 .......... ........................................................................................................................................... :Other M2 Funding' S ............................... $ (168,513) ..................................................................................................................................................... [Other M2 Interest 6 ............................... $ ..........: ........................................................................................................................................... Other* 7 ....I.......................... $ ................................................................................................... ...................................... Balances at Beginning of Fiscal Year (Sum Lines 1 to 7) 8 ............................... $ ............................... 1,876,827 ....................................................................................................................................................... :Monies Made Available During Fiscal Year 9 $ 3,217,781 Totai Monies Available (Sum Lines 8 & 9) 10 $ 5,094,608 .......... v .......................................................................................................................................... :Expenditures During Fiscal Year 11 ............................... $ 1,587,681 ............ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Balances at End of Fiscal Year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 'M2 Fairshare ................................................................................................... . . . 12 $ 3,815,242 ..........:................. M2 Fairshare Interest ............ ...... 13 ..... ........................ $ ........ .. - ........... ............................................................................................................................................ M2 CTFP 14 $ ............................... - .........., ............................................................................................................................................ [M2 CTFP Interest 15 $ ............................... 93,029.21 ;Other M2 Funding 16 $ (401,344.20) .........., ........................................................................................................................................... :Other M2 Interest 17 ............................... $ - ..........> ........................................................................................................................................... :Other* 18 ............................... $ - * Please provide a specific description NOTES: 1 Prior year Project 0 funds unbilled (Old Newport Blvd. & PCH) $16,434.38 Prior year Project 0 funds received in Sept. 2014 Unavailable (M $1,018,712.58 $ 1,035,146.96 2 Unspent prior years interest income $93,029.21 3 Prior year Project P unbilled (TRAF SIG MDRN PH 2 JMBREE) $155,002.34 Prior year Project X unbilled (STORM DRAIN INTERCEPTORS) $13,510.85 $ 168,513.19 Revision No. 2 4/14/14 4_3 City of Newport Beach M2 Expenditure Report Fiscal Year Ended June 30, 2014 Sources and Uses Schedule 2 ' 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 Line VMliner P Description High Frequency Metrolink Service Amount $ - No. S Revenues: Convert MetrolinkStation(s) to Regional Gateways that connect Orange County with High -Speed Rail Systems T . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . M2 Fairshare .......... :......................... 1 $ 1,651,785 .......................... .................................................................................................. M2 Fairshare Interest ..........:................................................................................................................................................................................ ................... 2 ................. ........................ $ 29,197 ....................I.......,.. M2 CTFP (Project 0) .......... :................................. ............................... _...... _...... _...... _...... _...... _...... _...... _...... _...... _..................................... 3 $ 1,419,290 ............................... M2 CTFP Interest :................................................... 4 $ - .......... ........ .......................................................................................... .Other M2 Funding ** .......... :..................................................................................................................................................... ................... 5 ................... ............. .. $ 117,182 ............. .. .Other M2 Interest :..................................................................................................................................................... 6 $ 328 .......... Other* ................... 7 ......................... .... TOTAL REVENUES (Sum lines 1 to 7) 8 $ 3,217,781 . Ex . . . . . . . . . p . . . . . . enditures: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . MMMMMW- . .M2 Fairshare :....................................................... 9 $ 819,495 .......... ..... ......................................................................................... M2 Fairshare Interest .......... :..................................................................................................................................................... ................... 10 ................... ........................ .. $ 33,703 ........................... iM2 CTFP (Project 0) ._ ....... ............................._......_......_......_......_......_......_......_......_......_......_......_......_......_......_................................. 11 .. $ 384,143 ............................... 'M2 CTFP Interest 12 _ .......:..................................._.................................................................................................................................... Other M2 Funding ** . .. ...n.tere..s.t.........._.............._........_.............._.............._.............._........................_. ............................................................................................1.4....... 13 ....5......................._.. .............................., _... $ 350,013 Ot.he...r M...2 .............................. . ..... ....................... Other* ...... ........................ 15 . .328 TOTAL EXPENDITURES (Sum lines 9 to 15) 16 $ 1,587,681 TOTAL BALANCE (Subtract line 16 from 8) 17 1 $ 1,630,100 Schedule 2 ' 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 Regional Traffic Signal Synchronization Program VMliner P O $ 18.00 High Frequency Metrolink Service R $ - Transit Extensions to Metrolink S $ - Convert MetrolinkStation(s) to Regional Gateways that connect Orange County with High -Speed Rail Systems T $ - Senior Mobility Program or Senior Non - Emergency Medical Program u $ 117,163.82 Community Based Transit /Circulators V $ - ns St. s Safe Trait p W $ - Water Quality Program X $ - V $ - Expenditures Regional Traffic Signal Synchronization Program P $ 110,796.99 High Frequency Metrolink Service R $ - Transit Extensions to Metrolink 5 Convert Metrolink Station (s) to Regional Gatewaysthat connect Orange Countywith High-Speed Rails stems T $ Senior Mobility Program or-Senior Non - Emergency Medical Program u $ 117,163.82 Community Based Transit /Circulators V $ - Safe Transit Stops W $ - Water Quality Program X $ 122.052.02 .50,012.83 Revision No. 2 4/14/14 4 -4 City of Newport Beach M2 Expenditure Report Fiscal Year Ended June 30, 2014 Streets and Roads Detailed Use of Funds Schedule 3 Line +Developer / M2 Fairshare M2 CTFP Other M2 Type of Expenditure MOE M2 Fairshare M2 CFFP Other M2 Other TOTAL No. Impact Fees Interest Interest Interest Administration (Indirect & Overhead) 1 1 1 S 8.144.347 1 1 1 1 1 1 IS 8.144.347 6?I Storm Drains Other Street Purpose Maintenance "otal Maintenance' 15 * Local funds used to satisfy maintenance of effort (MOE) requirements + Transportation related only ' Includes direct charges for staff time 311,728 3,004,480 Revision No. 2 4 -5 City of Newport Beach M2 Expenditure Report Fiscal Year Ended June 30, 2014 Fairshare Project List PROJECT NAME npus San Joaquin Hills Street Ovei boa /Channel Rd. Pavement Recor 1111...... 1111....... urete St. Pavement Replacement ....................... _._._._._._... jor Arterial St. Replacement Progr ......... ............................... ..11.11........................ ewalk /Curb /Gutter & ADA AMOUNT EXPENDED 62.02 13,642.73 121,605.50 325,347.60 853,197.85 Schedule 4 Revision No. 2 4/14/14 4.6 City of Newport Beach M2 Expenditure Report Fiscal Year Ended June 30, 2014 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: Director of Finance Revision No. 2 4/14/14 4_7 ATTACHMENT B RESOLUTION NO. 2014- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH CONCERNING THE MEASURE M2 EXPENDITURE REPORT FOR THE CITY OF NEWPORT BEACH FOR THE FISCAL YEAR ENDING JUNE 30, 2014. 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; 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 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 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, 2014. Section 2: The City Council find this action is not subject to the California Environmental Quality Act ( "CEQA ") pursuant to Section 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. ou City Council Resolution No. #### Paqe 2 of 2 PASSED, APPROVED, AND ADOPTED THIS 28TH DAY OF OCTOBER, 2014, BY THE FOLLOWING VOTE, TO -WIT: AYES, COUNCIL MEMBERS NOES, COUNCIL MEMBERS ABSENT COUNCIL MEMBERS MAYOR Rush D. Hill ATTEST: CITY CLERK 07 -22 -2014 mi