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Home My WebLink About03 - Measure M2 Expenditure ReportCITY OF � SEW PAR T z NEWPORT, BEAC ,oP City Council Staff Report Agenda Item No. 3 November 27, 2012 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: JN� A 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 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 2012-103 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 27, 2012 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." 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). Submitted by: LEfan Matusiewicz Finance Director Attachments: Resolution 2012- 4 RESOLUTION NO. 2012- 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. 3 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 27th day of November 2012. Nancy Gardner Mayor ATTEST: Leilani Brown City Clerk Attachment: M2 Expenditure Report City of Newport Beach M2 Expenditure Report Fiscal Year Ended June 30, 2012 Beginning and Ending Balances Description Line No. Amount Balances at Beginning of Fiscal Year 1 $ 96,124 M2 Fairshare M2 Fairshare Interest 2 $ - M2 CTFP 3 $ M2 CTFP Interest 4 $ - Other M2 Funding 5 $ - Other M2 Interest 6 $ - Other* 7 $ - Balances at Beginning of Fiscal Year (Sum Lines 1 to 7) 8 $ 96,124 Monies Made Available During Fiscal Year 9 $ 1,563,355 Total Monies Available (Sum Lines S & 9) 10 $ 1,659,479 Expenditures During Fiscal Year 11 $ 111,401 Balances at End of Fiscal Year M2 Fairshare 12 $ 1,529,647 M2 Fairshare Interest 13 ......................... $ 18,431 ....................... M2 CTFP 14 $ - M2 CTFP Interest 15 . ............................... $ - Other M2 Funding 16 $ - Other M2 Interest 17 $ - Other* 18 $ - * Please provide a specific description CTFP - Combined Transportation Funding Program Schedule 1 City of Newport Beach M2 Expenditure Report Fiscal Year Ended June 30, 2012 Sources and Uses Description Line Amount No. Revenues: 1 $ 1,433,523 M2 Fairshare M2 Fairshare Interest 2 $ 18,431 M2 CTFP 3 $ M2 CTFP Interest 4 $ - Other M2 Funding 5 $ 110,336 Other M2 Interest 6 $ 1,065 Other* 7 $ TOTAL REVENUES (Sum lines 1 to 7) 8 $ 1,563,355 Expenditures: 9 $ - M2 Fairshare M2 Fairshare Interest 10 $ - M2 CTFP 11 $ - M2 CTFP Interest 12 $ - Other M2 Funding 13 $ 110,336 Other M2 Interest 14 $ 1,065 Other* 15 $ - TOTAL EXPENDITURES (Sum lines 9 to 15) 16 $ 111,401 TOTAL BALANCE (Subtract line 16 from 8) 17 $ 1,451,954 * Please provide a specific description Schedule 2 City of Newport Beach M2 Expenditure Report Fiscal Year Ended June 30, 2012 Streets and Roads Detailed Use of Funds 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 Agency Staff & Administration 1 $ 7,659,303 $ - $ - $ - $ - $ - $ - $ - $ - $ 7,659,303 Construction & Right -of -Way New Street Construction 2 $ - $ 2,264,619 $ - $ - $ - $ - $ - $ - $ - $ 2,264,618 Street Reconstruction 3 $ - $ - $ - $ - $ - $ - $ Signals, Safety Devices, & Street Lights _. ......... 4 ........... $ - $ 695,391 __ .__.,..........._.....,.._..... $ - $ - $ - $ - $ - $ - $ - .... $ 695,391 ...... ...... ......... Pedestrian Ways & Bikepaths 5 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - Storm Drains 6 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ Storm Damage .........._........._........._ 7 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ _ ......... Total Construction 8 _...................... $ - $ 2,960,009 $ - $ - $ - $ - $ - $ - $ - ............................... $ 2,960,009 Right of Way Acquisition 9 $ - $ - $ - $ - $ - $ - $ - $ ..........- ......................-..............................................................................................................,.......................,.................,.....,.......................,............................,...........-....,..................,.....,.................,.....,.................,.................................... Total Construction & Right -of -Way 10 $ - $ 2,960,009 $ - $ - $ - $ - $ - $ - $ - ............................... $ 2,960,009 Maintenance _ .................. ............................... Patching 11 $ - $ - $ - $ - $ - $ - $ - $ - $ - _. $ _............ - ............- . ................. Overlay & Sealing 12 .. ................. $ 845,89fi ................. $ - .. - ....- .......- $ - ......... .. $ - .......... ......... $ - ............ $ - - .. ............ $ _ - .. $ .............. - ...... .......... $ _ - .........:.. $ 845,896 Street Lights &TrafficSignals 13 $ 821,127 $ 5,355 $ - $ -$ -$ - $ - $ - $ - $ 826,482 Storm Damage 14 $ 1,149 $ - $ - ..........................._....................._........................................................ $ - $ - $ - $ - .............._................ $ ... - ....................... $ - $ 1,149 Other Street Purpose Maintenance 15 $ 2,614,454 $ 1,008,644 $ ...........:.... $ ..........................:..._..........................:............................,.:...._ 5.........................:.....$.........................:..._ $........................,.:... $ 3,623,098 Total Maintenance 16 $ 4,282,627 $ 1,013,999 $ - $ - ....$...- $ $ - $ 5,296,625 Other (Senior Mobility) 17 $ - $ - $ - $ $- $110,33fi $1,065 $- $ 111,401 GRAND TOTALS (Sum Lines 1, 10, 16,17) 1 18 $ 11,941,929 $ 3,974,007 $ - $ - I $ - $ - $ 110,336 1 $ 1,065 $ - $ 16,027,338 * Local funds used to satisfy maintenance of effort (MOE) requirements ,Transportation related only City of Newport Beach M2 Expenditure Report Fiscal Year Ended June 30, 2012 Fairshare Project List PROJECT NAME AMOUNT EXPENDED No projects for Fiscal Year 2012 $ Schedule 4 8 City of Newport Beach I certify that all the information attached herein is true and accurate to the best of my knowledge: of