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Home My WebLink About05 - Approval of Measure M2 Expenditure ReportQ �EwaaR� O INA >, s Cq<I FO RNP TO: FROM CITY OF NEWPORT BEACH City Council Staff Report November 14, 2017 Agenda Item No. 5 HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL 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 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; and b) Adopt Resolution No. 2017-71, 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, 2017, subject to technical revisions to conform to OCTA guidelines. 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. 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 (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. 5-1 Approval of Measure M2 Expenditure Report November 14, 2017 Page 2 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 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 (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 No. 2017-71 5-2 ATTACHMENT A M2 Expenditure Report 5-3 City of Newport Beach, California M2 Expenditure Report Fiscal Year Ended June 30, 2017 Beginning and Ending Balances Schedule 1 Description Line Amount Interest No. Balances at Beginning of Fiscal Year .............................................................................................................................................................................................................. 1 $ - A -M Freeway Environmental Mitigation $ - ......................................®............................................... ORegional Capacity Program 2 ...........,... $ (428,677) $ - ......................................................................................................................................................................................................................................................................................................................................................................................... P .Region,al Traffic Signal Synchronization Program 3 $ - $ - QM2 Fair Share .................,.......................................................................................................................................................................................................................................................................................................................................................................... 4 $ 3,205,609 $ - R :High Frequency Metrolink Service 5- ....................................................................................................... STransit Extensions to Metrolink 6 $ - $ - ........................................................................................................................................................................................................................................................................................................................................................................................... T Convert Metrolink Station(s) to Regional Gateways that 7 $ $ connect Orange County with High -Speed Rail Systems ........................................................................................................................................................................................................................................................................................................................................................................................... U Senior Mobility Program or Senior Non -Emergency Medical 8 $ $ Program ........................................................................................................................................................................................................................................................................................................................................................................................ V Community Based Transit/Circulators 9 $ - $ - ..................................... WSafe Transit Stops 10 $ - $ - ........................................................................................................................................................................................................................................................................................................................................................................................... X Water Quality Program 11 $ (54,369) $ - Other * ................. 12 .......,.., $ ... $ - .................:........................................................................................................................................................................................................................................................................................................................................................................... Balances at Beginning of Fiscal Year (Sum Lines 1 to 12) ................. V................................................,...............................®................................,........................................ 13 ...................... $ 2,722,563 .............. I............. $ - ............ ... 'Monies Made Available During Fiscal Year .................................................................................................................................................................................................................................................................................................................................. 14 $ 2,323,238 $ 1,916 Total Monies Available (Sum Lines 13 & 14) 15 $ 5,045,801 $ 1,916 ExpendituresDuring Fi's"c'a"l Year .......... ........................................................................................................................................................................... .................................. 16 $ 4,876,876 ......................... $ 1,916 Balances at End of Fiscal Year A-M;Freewa Environmental Mitigation 17 $ - $ - ........................................................................................................................................................................................................................................................................................................................................................................................... O Regional Capacity Program 18 $ (79,238) $ - ...................................................... P Regional Traffic Signal Synchronization Program 19 .......................... $ (14,592) $ - ........................................................................................................................................................................................................................................................................................................................................................................................... Q M2 Fair Share .........................................................,......................... 20 ................. $ 1,800,295 $ - R High Frequency Metrolink Service 21 $ - $ - ........................................................................................................................................................................................................................................................................................................................................................................................... S Transit Extensions to Metrolink22 ........................................................................................... .................... $ - $ - T Convert Metrolink Station(s) to Regional Gateways that 23 $ $ connect Orange County with High -Speed Rail Systems ................................................................................................................................................................. . ..... U Senior Mobility Program or Senior Non -Emergency Medical 24 $ $ Pro&.ram VCommunity Based Transit/Circulators 25 $ (50,391) $ - ........................................................................................................................................................................................................................................................................................................................................................................................... W Safe Transit Stops 26 $ - $ - ....................................... X Water Quality Program 27 ......................... $ (1,487,149) $ - ........................................................................................................................................................................................................................................................................................................................................................................................... Ot er 1 28 $ - 1 $ - * Please provide a specific description 5-4 City of Newport Beach, California M2 Expenditure Report Fiscal Year Ended June 30, 2017 Sources and Uses Schedule 2 Description Line Amount Interest No. Revenues: 1 $ .................................................................................................................................................................................................................................................... A -M: Freeway Environmental Mitigation ................................................................................................................ O.....!Regional Capacity...Program ...........................................................................................................................................................2 ................................................................................................................................ $ 366,578 $ - P : Regional Traffic Signal Synchronization Program 3 $ 11,696 $ - ..........,;,..,.®.....................................................®...................................................... QM2 Fair Share ................................................................................................................................................................................................................................................... 4 $ ..................................... 1,813,934 $ 1,520 R !High Frequency Metrolink Service 5 $ - $ - ..................................................................................................................................... S :Transit Extensions to Metrolink ....... ........ ;.................................................................................................................................................................................................................................... ............................. 6 ........................... $ .......................................................... .......................................................... T ;Convert Metrolink Station(s) to Regional Gateways that connect 7 $ $ :Orange County with High -Speed Rail Systems .............................................................................................................. U :Senior Mobility Program or Senior Non -Emergency Medical Program ...... ......... ;.................................................................................................................................................................................................................................... 8 ........................... $ .......................................................... 131,030 $ .......................................................... 396 V :Community Based Transit/Circulators 9 $ - $ - ........................................®.....,........,.... W :Safe Transit Stops a.................................................................................................................................................................................................................................... .............., 10 ...... $ - $ - ............... X Mater Quality Program ........................... 11 .......................................................... $ - .......................................................... $ - ........................................................................ .................. :Other* 12 $ - $ - TOTAL REVENUES (Sum lines 1 to 12) 13 $ 2,323,238 $ 1,916 Expenditures: .................................................................................................................................................................................................................................................... 14 A -M Freeway Environmental Mitigation $ - $ - ............,.........................................................................I......... O.................................................................................................................................................................................................................................... ..................... ........................................ P Regional Traffic Signal Synchronization Program 16 $ 26,287 $ - ....... ....................................®......................................................... QM2 Fair Share ...............,................................................................................................................................................................................................................................................................................................................................................................................... ................ 17 $ 3,219,248 $ 1,520 R :High Frequency Metrolink Service 18 $ - $ - .............................................................................. S :Transit Extensions to Metrolink ............... a.................................................................................................................................................................................................................................... 19 ........................... $ .......................................................... ............... - $ .......................................................... - T ;Convert Metrolink Station(s) to Regional Gateways that connect 20 $ $ :Orange County with High -Speed Rail Systems ............... :.................................................................................................................................................................................................................................... ........................... .......................................................... .......................................................... U :Senior Mobility Program or Senior Non -Emergency Medical Program 21 $ 131,030 $ 396 .........................................®.....................................®......................................................................................... V :Community Based Transit/Circulators22 ;.................................................................................................................................................................................................................................... .............. $ ®...... 50,391 ,....... $ - ............... W :Safe Transit Stops23 ........................... .......................................................... $ - .......................................................... $ - ......................................................................... X :Water Quality Program24 :.................................................................................................................................................................................................................................... ......................... $ ................................... 1,432,780 $ - ............... 'Other* ......... .................. 25 .......................................................... $ - .......................................................... $ - TOTAL EXPENDITURES (Sum lines 14 to 25) 26 $ 4,876,876 $ 1,916 TOTAL BALANCE (Subtract line 26 from 13) 27 $ (2,553,638) $ - * Please provide a specific description 5-5 City of Newport Beach, California M2 Expenditure Report Fiscal Year Ended June 30, 2017 Streets and Roads Detailed Use of Funds Schedule 3 Type Ex YP of Expenditure Line No + Developer / MOE� Impact Fees O O Interest P P Interest Q Q Interest X X Interest Other M23 Other M2 Other* Interest S TOTAL Administration (Indirect & Overhead) 1 $ 9,657,953 Senior Mobility Program or Senior Non -Emergency Medical Progran VCommunity Based Transit/Circulators W Safe Transit Stops X lWater Quality Program $ 9,657,953 Construction & Right -of -Way New Street Construction 2 $ Street Reconstruction 3 $ 2,386,866 $ 17,139 $ 1,174,890 $ 555 $ 3,579,449 Signals, Safety Devices, & Street Lights 4 $ 198,365 $ 17,784 $ 26,287 $ 242,435 Pedestrian Ways & Bikepaths 5 $ Storm Drains 6 $ Storm Damage 7 $ Total Construction' 8 $ 2,585,230 $ 17,784 $ 17,139 $ - $ 26,287 $ - $ 1,174,890 $ 555 $ - $ - $ - $ - $ - $ 3,821,885 Right of Way Acquisition 9 $ Total Construction & Right -of -Way 10 $ 2,585,230 $ 17,784 $ 17,139 $ - $ 26,287 $ - $ 1,174,890 $ 555 $ - $ - $ - $ - $ - $ 3,821,885 Maintenance Patching 11 $ Overlay & Sealing 12 $ 640,872 $ 2,044,358 $ 965 $ 2,686,195 Street Lights & Traffic Signals 13 $ 595,272 $ 595,272 Storm Damage 14 $ Other Street Purpose Maintenance 15 $ 2,868,469 $ 2,868,469 Total Maintenance' 16 $ 4,104,613 $ - $ - $ - $ - $ - $ 2,044,358 $ 965 $ - $ - $ - $ - $ - $ 6,149,936 Other 17 $ 33,420 $ 1,432,780 $ 181,421 $ 396 $ 1,648,018 GRAND TOTALS (Sum Lines 1, 10, 16, 17) 18 $ 16,347,795 $ 51,204 $ 17,139 $ - $ 26,287 $ - $ 3,219,248 $ 1,520 $ 1,432,780 $ - $ 181,421 $ 396 $ - $ 21,277,791 ' Includes direct charges for staff time z Local funds used to satisfy maintenance of effort (MOE) requirements 3 Other M2 includes A -M, R,S,T,U,V, and W Transportation related only * Please provide a specific description Legend Project Description MR A -M Freeway Environmental Mitigation O Regional Capacity Program P Regional Traffic Signal Synchronization Program Q M2 Fair Share R High Frequency Metrolink Service S Transit Extensions to Metrolink T Convert Metrolink Station(s) to Regional Gateways that connect Orange County with High -Speed Rail Systems U Senior Mobility Program or Senior Non -Emergency Medical Progran VCommunity Based Transit/Circulators W Safe Transit Stops X lWater Quality Program 5-6 City of Newport Beach, California M2 Expenditure Report Fiscal Year Ended June 30, 2017 M2 Fair Share Project List PROJECT NAME I AMOUNT EXPENDED Residential Street Overlay (12201-980000-151 ...................................... MacArthur Blvd Pavement (12201-980000-15 2,045,324 1,175,444 3,220,767.98 Schedule 4 5-7 City of Newport Beach, California M2 Expenditure Report Fiscal Year Ended June 30, 2017 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) Date rCc-'�U°-C7 5-8 ATTACHMENT B Resolution No. 2017-71 5-9 RESOLUTION NO. 2017-71 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, 2017 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 jurisdictions 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 ("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 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 M2 Expenditure Report to OCTA for the fiscal year ending June 30, 2017. 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 one or more sections, subsections, sentences, clauses or phrases be declared invalid or unconstitutional. 5-10 Resolution No. 2017 - Page 2 of 2 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 14th day of November, 2017. Kevin Muldoon Mayor ATTEST: Leilani I. Brown City Clerk APPROVED AS TO FORM: CITY,ATTORNEY'S OFFICE Aaron C. City Attoi 5-11