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Home My WebLink About06 - Approval of Measure M2 Expenditure ReportPO CITY OF z NEWPORT BEACH Cq G�p� P City Council Staff Report November 24, 2015 Agenda Item No. 6 TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: Finance Department Dan Matusiewicz, Finance Director 949-644-3123, danmatusiewicz@newportbeachca.gov PREPARED BY: Rukshana Virany, Accounting Manager TITLE: Approval of Measure M2 Expenditure Report ABSTRACT: With the renewal of Measure M (M2), local jurisdictions 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: Adopt Resolution No. 2015-101, 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, 2015, 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 a half -cent sales tax and entrusted the newly created Orange County Transportation Authority. 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 6-1 Approval of Measure M2 Expenditure Report Agenda Item No. 6 Page 2 process began in the first quarter of Fiscal Year 2010-2011 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 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: A. M2 Expenditure Report B. Resolution 6-2 ATTACHMENT A M2 Expenditure Report 6-3 City of Newport Beach M2 Expenditure Report Fiscal Year Ended June 30, 2015 Beginning and Ending Balances Description Line Amount ::Other M2 Interest 6 $ onies a e Available During Fiscal Year Total Monies Available (Sum Lines 8 & 9) 10 $ 5,388,971 xpenclitures During Fiscal Year 11 $ 6,165,097 W2 Fairshare 12 $ 3,943,820 W2 Fairshare Interest 13 $ (32,703) * Please provide a specific description CTFP - Comprehensive Transportation Funding Programs Notes: lThis amount $27'98531,for FY 14 Project (}|d Newport Blvd. &P[H)was inadvertently not included in FYl3'l4Expenditure Report. Schedule 1 Mon City of Newport Beach M2 Expenditure Report Schedule 2 Fiscal Year Ended June 30, 2015 Sources and Uses * 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 Description Project Description Amount Project No. Interest Total Freeway Environmental Mitigation A -M $ 1 $ 1,701,855 .Reve...nues:..................................................................................................................................... . W2 Fairshare .................................................................................................................................................................................................. :M2 Fairshare Interest 2 $ 25,495 ..........:............................................................................................................................................ :M2 CTFP (Project 0) 3 $ 116,935 ..........:.................................................................................................................................................. M2 CTFP Interest 4 $ - ..........:................................................................................................................................................... :Other M2 Funding** 5 $ 123,087 ..........:.................................................................................................................................................. :Other M2 Interest 6 $ 176 ..........:.................................................................................................................................... ;Other* 7 $ TOTAL REVENUES (Sum lines 1 to 7) 8 $ 1,967,548 Expenditures: 123,087 $ 176 $ 123,263 9 $ 4,160,331 ......................................................................................................... :M2 Fairshare ................................................................................................................ M2 Fairshare Interest 10 ................................... $ 58,198 ..........:..................................................................................................... :M2 CTFP (Project 0) 11 ................................... $ 3,236,052.64 ..........i .. ..................................................................................................................................... M2 CTFP Interest 12 ................................... $ - ..........:.. ................................................................................................................................... :Other M2 Funding** 13 ................................... $ 1,317,853 ............ :Other M2 Interest 14 $ :Other* 15 .176 . $ - TOTAL EXPENDITURES (Sum lines 9 to 15) 1 16 1 $ 8,772,611 TOTAL BALANCE (Subtract line 16 from 8) 17 1 $ (6,805,063) * 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 Project Amount Interest Total Freeway Environmental Mitigation A -M $ $ $ Regional Traffic Signal Synchronization Program P $ $ $ 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 $ 123,087 $ 176 $ 123,263 Community Based Transit/Circulators V $ - $ - $ - Safe Transit Stops W $ $ $ Water Quality Program X $ $ $ Total $ 123,087 $ 176 $ 123,263 Expenditures Project Description Project Amount Interest Total Freeway Environmental Mitigation A -M $ - $ - $ - Regional Traffic Signal Synchronization Program P $ 125,925 $ $ 125,925 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 $ 123,087 $ 176 $ 123,263 Community Based Transit/Circulators V $ - $ - $ - Safe Transit Stops W $ - $ $ - Water Quality Program X $ 1,068,842 $ $ 1,068,842 Total $ 1,317,853 $ 176 $ 1,318,029 6-5 City of Newport Beach K82Expenditure Report Fiscal Year Ended June 3loozs Streets and Roads Detailed Use ufFunds Schedule 3 Type of Expenditure Line No. *MOE + Developer/ Impact Fees M2 Fairshare M2 Fairshare Interest M2 CTFP M2 CTFP Interest Other M2 Other M2 Interest Other TOTAL ::Signals, Safety Devices, & Street Lights 4 325,235 $ 125,925 - $ 451,160 ::Storm Drains 6 1,068,842 $ 1,068,842 :Storm Damage 7 $ Total Construction' 8 4,035,735 427,602 249,059 58,198 3,236,053 - 1,194,766 9,201,413 Right of Way Acquisition $ ::Storm Damage 14 ::Other Street Purpose Maintenance is 3,167,151 Total Maintenance' 16 4,646,309 - 1,303,757 $ 5,950,067 ~ Local funds used msatisfy maintenance meffort (MOE) requirements + Transportation related only ' Includes direct charges for staff time City of Newport Beach M2 Expenditure Report Fiscal Year Ended June 30, 2015 Fairshare Project List PROJECT NAME AMOUNT EXPENDED McArthur Signal Street Overlay '6c—e ... ... .... ... .... ... ... .... ... ... ... ....................................................................................................... $ 217,312 ......................... ... ... .... n B.Iv, C'o' n cr-e-t-e' v a Ovela, d 0 y 2 3'0-','3' 6-3 ..................................................................................................................................................................................................................... Campus San Joaquin Hills Street Overlay 627,545 K.... ...................................................................................................................................................... ia"Jor Arterial Street Repair Program ................................................ 17,301 ...- '......-......'...''..........,.........,..., f-a-i'..........................................................................................................................'-'''...-.. Bay �venue 3avementRehabiition . 38,005 ''--.... . ............................................................................................................................................. 6�ive/Westcliff Dr Street Rehabilitation ................................................6�ver 19,010 .. ... .",",...—''...",F- ,........."....''...---..........',.................................................................................................................."''...,...6oncreie�treet�vement Replacement 2,559 ''--......—...--''...',....-...--'.......-',...-',............................................................................................................................. Street Overlay Program .................................................................................................................................................................. .................................................................................................................................................................. .................................................................................................................................................................. .................................................................................................................................................................. .................................................................................................................................................................. .................................................................................................................................................................. 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..-'''...,...�esideniial 4S8,960 ................................................ ................................................ ................................................ ................................................ ................................................ ................................................ ................................................ ................................................ ................................................ ................................................ ................................................ ................................................ ................................................ ................................................ ................................................ ................................................ ................................................ ................................................ ................................................ ................................................ ................................................ ................................................ ................................................ ................................................ ................................................ ................................................ ................................................ ................................................ ................................................ ................................................ ................................................ ................................................ ................................................ ................................................ ................................................ ................................................. $ 1,611,015 Schedule 4 6-7 City of Newport Beach M2 Expenditure Report Fiscal Year Ended June 30, 2015 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 Director of Finance (Print Name) Director of Finance Signature 11/16/2015 Date ATTACHMENT B Resolution 2015- .• City Council Resolution No. #### Page 1 of 2 RESOLUTION NO. 2015- 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, 2015. 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, 2015. 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. 6-10 City Council Resolution No. #### Page 2 of 2 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 24th day of November 2015. Edward D. Selich Mayor ATTEST: Leilani I. Brown City Clerk 6-11