HomeMy WebLinkAbout04 - Approval of Measure M2 Expenditure ReportPORT CITY OF
O �
_ i NEWPORT BEACH
City Council Staff Report
<i FO RN
November 5, 2019
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: Rukshana Virany, Accounting Manager,
rvirany@newportbeachca.gov
PHONE: 949-644-3146
TITLE: Resolution No. 2019-93: 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 revenues 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 2019-93, 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, 2019.
FUNDING REQUIREMENTS:
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. The old Measure M plan ended
March 31, 2011.
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Resolution No. 2019-93: Approval of Measure M2 Expenditure Report
November 5, 2019
Page 2
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 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."
In FY 2018-19, the City received $2.2 million in M2 Funds and spent $3.2 million. The
City spent more than it received because it had $3 million of unspent M2 funds from prior
years.
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. 2019-93
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ATTACHMENT A
M2 Expenditure Report
Glc]
City of Newport Beach
Description
M2 Expenditure Report
Fiscal Year Ended June 30, 2019
Beginning and Ending Balances
Line No. I Amount
Interest
Schedule 1
Balances at Beginning of Fiscal Year
A
A -M Freeway Environmental Mitigation.,
1
$
$
0 Regional Capacity Program (RCP)
2
$ 226
$ 1
P Regional Traffic Signal Synchronization Program (RTSSP)
3
$ -
$
Q Local Fair Share
4
$ 3,210,769
.............. ... . ._
$ -
R High Frequency Metrolink Service
5
$
$ -
S Transit Extensions to Metrolink
_ _
_ 6
$
$ -
_ ... _............ ....
Convert Metrolink Station(s) to Regional Gateways that
7
$
$
T
connect Orange County with High -Speed Rail Systems
................ .
Senior Mobility Program or Senior Non -Emergency Medical
8
$
$
Program
V Community Based Transit/Circulators
9
$(146,319)
$ -
W Safe Transit Stops
10
$-
.._.
$ -
.
X Environmental Cleanup Program (Water Quality)
11
$ (13,827)
$ '
........... ........:...:..,, ..
_
Other* _
_
12
$
$
Balances at Beginning of Fiscal Year
13
$ 3,050,849
$ -
Monies Made Available During Fiscal Year
14
$ 2,122 337
$ 108,832
Total Monies Available (Sum Lines 13 & 14)
15
$ 5,173,186
$ 108,832
Expenditures During Fiscal Year
16
$ 3,061,691
$ 108,832
Balances at End of Fiscal Year
A -M Freeway, En- Mitigation
_.. .
17 ..
.:.$.........:........
$
11vironmental
0 Regional Capacity Program (RCP)
18
$ 226
$ -
P Regional Traffic Signal Synchronization Program (RTSSP)
19
$
$ -
Q Local Fair Share20
_ ....
.:.... .....
$ 2,660,557
...
...
$
_...
R High Frequency Metrolink Service
21
$ ._..
$ ..
_
S Transit Extensions to Metrolink
22
-
-
Convert Metrolink Station(s) to Regional Gateways that
23
$
$ -
T
connect Orange County with High -Speed Rail Systems
,Senior Mobility Program or Senior Non -Emergency Medical
24
$
$
U
Program
V 'Community Based Transit/Circulators
25
$ (266,037)
$
W Safe Transit Stops
26
$
X Environmental Cleanup Program (Water Quality)
27
$(283,251)
$ -
.....:.....
Other*
28
$
$
* Please provide a specific description
Note 1: Reconciliation of fiscal year 2018-19's Schedule 1's beginning balance to fiscal year 2017-18's Schedules 1 and 2.
Other Project O Project X
Fiscal year 2017-18 Schedule 1 beginning balance - (79,238) (1,487,149)
Fiscal year 2017-18 Schedule 2 revenues 66,027 67,500 1,419,258
Fiscal year 2017-18 Schedule 2 expenditures (nets to zero) 66,027 (11,964) (54,063)
Fiscal year 2018-19 Schedule 1 beginning balance - 226(13,827)
The Project X total in this note is off by $1 due to rounding.
City of Newport Beach M2 Expenditure Report Schedule 2
Fiscal Year Ended June 30, 2019
Sources and Uses
Description
Line
Amount
Interest
No.
Revenues:
EMEMEMENWEE
A -M Freeway Environmental Mitigation
1
$
$
0 Regional Capacity Program (RCP)2
$
-
$
.... .
P Regional Traffic Signal Synchronization Program (RTSSP)
3
$
$
Q Local Fair Share
4 ... .
$
1,979,182
$
106,115
R High Frequency Metrolink Service
5
$
-
$
-
S Transit Extensions to Metrolink
6
$
$
Convert Metrolink Station(s) to Regional Gateways that connect Orange
7
$
$
T
County with High -Speed Rail Systems
U Senior Mobility Program or Senior Non -Emergency Medical Program
8
$
143,155
$
2,717
V Community Based Transit/Circulators9
$
-
$
_
W Safe Transit Stops
10
$
$
..
X Environmental Cleanup Program (Water Quality) .
11
$
-
$
-
...........
Other* _ . ........ ...
12
$
-
$
TOTAL REVENUES (Sum lines 1 to 12)
13
$
2,122,337
$
108,832
Expenditures:
A -M Freeway Environmental Mitigation
O Regional Capacity Program (RCP)
15
$
$
P Regional Traffic Signal Synchronization Program (RTSSP)
16-11111.
$
-
$
-
Q Local Fair Share
17
$
2,529,394
$
106,115
R High Frequency Metrolink Service
18
$
-
$
-
S Transit Extensions to Metrolink
19
$
$
-
Convert Metrolink Station(s) to Regional Gateways that connect Orange
20
$
$
T
County with High -Speed Rail Systems
:
U Senior Mobility Program or Senior Non -Emergency Medical Program
21
$
143,155
$
2,717
V Community Based Transit/Circulators
22
W ,Safe Transit Stops
23
$
-
$
-
X Environmental Cleanup Program (Water, Quality)
24
$
269,424
$
-
Other*
25
$
-
$
-
TOTAL EXPENDITURES (Sum lines 14 to 25)
26
$
3,061,691
$
108,832
TOTAL BALANCE (Subtract line 26 from 13)
27
$
(939,354)
$
* Please provide a specific description
Note 2: The total here for Project Q (Local Fair Share) is different from Schedule 4 because of rounding.
L'�
City of Newport Beach
M2 Expenditure Report
Fiscal Year Ended June 30, 2019
Streets and Roads Detailed Use of Funds
Schedule 3
Type of Expenditure
Line
No
MOEz
+Developer/
Impact Fees
O
O
Interest
P
P
Interest
Q
Q°
Interest
R
X
Interest
Other
M2'
Other
Other
Interest
Other*
TOTAL
Indirect and/or Overhead
1
$ 10,344,120
$ -
$ -
$
$ -
$
$
$
$
$
$ -
$ -
$ -
$ 10,344,120
Construction & Right -of -Way
New Street Construction
Street Reconstruction
Signals, Safety Devices, & Street Lights
Pedestrian Ways & Bikepaths
Storm Drains
Storm Damage..._.7.
Total Construction'
Right of Way Acquisition... _ _....
Total Construction & Right -of -Way
2
3
4
5
6
8
9
10
$
$ 1,789,805
$ 863,203
$ 89,004
$ 910,160
$.
$ 3,652,172
$
$ 3,652,172
$ -
$ -
$ -
$ -
$
$. _.
$ -
$.
$ -
$
$ -
$ -
$ -
$.. ..-.
$. -.
$ -
$
$ -
$ -
$ -
$ -
$ -
$
$
$ -
$
$ -
$
$ -
$ -
$ -
$ -
$ ._$
$ -
$ _
$ -
$ -
$ -
$ -
$
$ _-
$ -
$ -
$ -
$
$ 2,529,394
$ -
$ -
$ _. -
$
$ 2,529,394
$
$ 2,529,394
$
$ 106,115
$ -
$
$ _.
$ -
$ 106,115
$ 106,115
$ -
$ -
$
$ -
$ 269,424...$
$ -
$ 269,424
$ 269,424
$ -
$ -
5 -
$ -
$ -
$ -
$ -
mom
$ -
$
$ -
$
$ ..
$ -
$ -
$ -
Mm.
$ _
$
$ -
$ -
$... -
$
$ -
$ -
MOM
$ -
$ -
$ -
$, -
$.
$
$ -
$ -
$ -
$ 4,425,314
$ 863,203
$ 89,004
$ .1,179,584
$ "
$ 6,557,105
$ 6,557,105
Maintenanceis
Patching
... .._
Overlay & Sealing
Street Lights & Traffic Signals
Storm Damage.
Other Street Purpose Maintenance
Total Maintenance'
Other _. _.... .... _.
11
12
13
14
15
16
17 ...$
IBM=
$
$ 937,078
$ 795,267
$ _..
$ 31271,801
$ 5,004,146
_.....
soon
$
$
$ -
$..._.
$ -
$ -
$ _.
III=
$
$ -
$.. -
$ -
$ -
$
NowFIFEM
$
$
$ -
$
$ -
$ -
$ ...
$
$.
$ -
$
$ -
$ -
$
$ -
$ -
$ -
$ -
$ -
$ -
.$ ...-.
No=
$
$ _..
$
$ .. -
$ -
$ .....
$
In=
$ -..$
$ -
$ _
$ -
$_...._ _
$ -...
Now
$ -
$..
$
$... -
$ -
$. -
$-
$
$
$
$ -
$........
$
$....
$ -
$,......,.
$ 262,873
$ -
$ -
$.
$ -
$...._
$ 2,717
-
$ -
$ -
$. ..
$ -
$,
. $.. ....
_
$ .......937,078
$ _ 795,267
$
$ 3,271,801
$.. 5,004,.146
$ 265,590
GRAND TOTALS (Sum Lines 1, 10, 16,17_)
18
$ 19,000,438
$ -
$ -
$ -
$ -
$ -
$ 2,529,394
$ 106,115
$ 269,424
$ -
$ 262,873
$ 2,717
$ -
$ 22,170,961
' Includes direct charges for staff time
' 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
Note 4: The total here for Project Q (Local Fair Share) is different from Schedule 4 because of rounding
V Project
IDescription
A -M
IFree.ay Environmental Mitigation
p
lRegional Capacity Program (RCP)
P
lRegional Traffic Signal Synchronization Program (RTSSP;
Q
I Local Fair Share
R
I High Frequency Metrolink Service
S
ITransit 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 Program
V
Community Based Transit/Circulators
W
Safe Transit Stops
X
Environmental Cleanup Program (Water Quality)
am
City of Newport Beach
M2 Expenditure Report
Fiscal Year Ended June 30, 2019
Local Fair Share Project List
Schedule 4
PROJECT NAME
AMOUNT EXPENDED
Bayside Dr Modification (12201-980000-16R12)
1461661.16
Balboa Village Streetscape Improv (12201-980000-17R11)
212026.77
MacArthur Blvd University Dr Paveme (12201-980000-18R23)147399.86
Marguerite Av Hospital Rd Pavement (12201-980000-18R24)
622091.16
Bison Ave Pavement Rehabilitation (12201-980000-19R21)
192329.13
Note: The total here for Project Q (Local Fair Share) is different than
Schedules 2 and 3 because of rounding.
$ 2,635,508.08
:�7
City of Newport Beach
M2 Expenditure Report
Fiscal Year Ended June 30, 2019
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)
Signature
Date
p- I L4- 1�
HU.,
ATTACHMENT B
Resolution 2019- 93
RESOLUTION NO. 2019-.93
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, 2019
WHEREAS, local jurisdictions are required to meet eligibility requirements and
submit eligibility verification packages to Orange County Transportation Authority
("OCTA") to remain eligible to receive Measure M2 ("M2") funds;
WHEREAS, local jurisdictions are required to adopt an annual expenditure report
as part of the eligibility requirements, ("Expenditure Report") attached hereto as Exhibit A
and incorporated herein by reference,
WHEREAS, local jurisdictions are required to account for developer/traffic impact
fees, and funds expended by it in the Expenditure Report that satisfy OCTA's
Maintenance of Effort requirements;
WHEREAS, local jurisdictions are also required to account for Net Revenues in
such Expenditure Report, which is defined by OCTA as "[a]II of the gross revenues
generated from the transactions and use tax plus any interest or other earnings thereon
(collectively, "Revenues"), after the deduction for: (i) amounts payable to the State Board
of Equalization for the performance of functions incidental to the administration and
operation of the Ordinance, (ii) costs for the administration of the Ordinance as provided
herein, (iii) two percent (2%) of the Revenues annually allocated for Environmental
Cleanup, and (iv) satisfaction of debt service requirements of all bonds issued pursuant
to the Ordinance that are not satisfied out of separate allocations, shall be defined as "Net
Revenues" and shall be allocated solely for the transportation purposes described in the
Ordinance";
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 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 M2.
NOW, THEREFORE, the City Council of the City of Newport Beach resolves as
follows:
O
Resolution No. 2019 -
Page 2 of 3
Section 1: The City Council does hereby inform OCTA that:
a) The Expenditure Report is in conformance with the template provided in the
Measure M2 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 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 Expenditure Report to OCTA for the fiscal year ending June 30,
2019.
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.
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, Division 6, Chapter 3,
because it has no potential for resulting in physical change to the environment, directly or
indirectly.
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Resolution No. 2019 -
Page 3 of 3
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 5th day of November, 2019.
Diane B. Dixon
Mayor
ATTEST:
Leilani I. Brown
City Clerk
APPROVED AS TO FORM:
CITY ATTORNEY'S OFFICE
A a,-, C ff
aL,—,
Aaron C. Harp
City Attorney
Attachment: Exhibit A - Expenditure Report
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EXHIBIT A
EXPENDITURE REPORT
[FOR THE FULL TEXT OF THIS DOCUMENT, SEE ATTACHMENT
A TO THE STAFF REPORT]
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