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Home My WebLink About07 - CC-7 - Measure M2 Expenditure Report - 12/6/2016CITY COUNCIL AGENDA REPORT MEETING DATE: DECEMBER 6, 2016 SUBJECT: MEASURE M2 EXPENDITURE REPORT DATE: NOVEMBER 9, 2016 ITEM NUMBER: CC -7 FROM: PUBLIC SERVICES DEPARTMENT AND FINANCE DEPARTMENT PRESENTATION BY: RAJA SETHURAMAN, INTERIM PUBLIC SERVICES DIRECTOR AND STEPHEN DUNIVENT, INTERIM FINANCE DIRECTOR FOR FURTHER INFORMATION CONTACT: RAJA SETHURAMAN, INTERIM PUBLIC SERVICES DIRECTOR, (714) 754-5343 RECOMMENDATION: Adopt the Resolution (Attachment 1) approving the Measure M2 Expenditure Report. BACKGROUND: The approved guidelines for Renewed Measure "M" (M2) eligibility require that local agencies prepare and adopt an annual expenditure report on Measure M2 funds. The expenditure report is a detailed financial report which tracks financial activity as it relates to Measure M2 and other improvement funds. The report should account for receipt, interest earned, and the use of Measure M2 and other funds as outlined in the Ordinance approved by the Orange County Transportation Authority (OCTA) Board and finally the Orange County voters. OCTA requires the annual report to be provided within six (6) months from the end of the jurisdiction's fiscal year. ANALYSIS: In order to qualify for Measure M2 funding, all agencies have to meet certain eligibility criteria established by the Ordinance approving the "M2" Program. Preparation of the expenditure report is one such requirement that each jurisdiction has to meet on an annual basis. The guidelines require each City to prepare and adopt an annual expenditure report to account for Measure M2 funds, developer/traffic impact fees, and funds expended by the City to satisfy Maintenance of Effort requirements. The following are the requirements of the expenditure report: • Submit report within six (6) months of jurisdiction's end of fiscal year; • Include all Measure M2 revenue, fund balances, and interest earned; • Identify expenditures by activity type (capital, operations, administration, etc.) and the funding source for each program/project; and • Submit the expenditure report signed by the Finance Director accompanied by a resolution from the City Council. The City of Costa Mesa's report for Fiscal Year 2015-16 is due by December 31, 2016. Finance Department staff prepared the attached expenditure report (Attachment 2) in accordance with OCTA guidelines. The report was reviewed in draft form by OCTA staff, and the information provided was determined to be acceptable. Staff requests City Council's approval of the attached resolution approving the expenditure report and authorizing staff to submit the report to OCTA. ALTERNATIVES CONSIDERED: The City Council may choose not to approve the attached resolution. This alternative would make the City ineligible to receive Measure M2 funds from the Orange County Transportation Authority. FISCAL REVIEW: The expenditure report was prepared by Finance Department staff and took into account the final auditing of revenues and expenses for Fiscal Year 2015-16. The information contained in the M2 Expenditure Report was also reviewed by OCTA staff and determined to be acceptable. LEGAL REVIEW: The City Attorney's office has reviewed and approved the Resolution (Attachment 1) as to form. CONCLUSION: The voter -approved Measure M2 requires local agencies to meet certain eligibility requirements for receipt of Measure M2 funds, including approval of the M2 Expenditure Report. Staff recommends that the City Council adopt the attached Resolution approving the M2 Expenditure Report for Fiscal Year 2015-16, for submittal to OCTA. STEPHEN DUNIVENT Interim Finance Director COLLEEN O'DONOGHUE Assistant Finance Director ATTACHMENTS: 1 — Resolution 2 — M2 Expenditure Report RAJA SETHURAMAN Interim Public Services Director DISTRIBUTION: Chief Executive Officer Assistant Chief Executive Officer City Attorney City Clerk Division Staff File E ATTACHMENT 1 RESOLUTION NO. 16- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF COSTA MESA, CALIFORNIA, ADOPTING THE MEASURE M2 EXPENDITURE REPORT FOR FISCAL YEAR 2015-2016. THE CITY COUNCIL OF THE CITY OF COSTA MESA DOES HEREBY RESOLVE AS FOLLOWS: 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 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, BE IT RESOLVED that the City Council of the City of Costa Mesa, California, does hereby inform the Orange County Transportation Authority that: a) The attached 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 for the City of Costa Mesa. BE IT FURTHER RESOLVED The City Clerk shall certify to the passage and adoption of this Resolution and it shall thereupon take effect and be in force. PASSED AND ADOPTED this 6th day of December, 2016. ATTEST: Stephen M. Mensinger Mayor APPROVED AS TO FORM: Brenda Green, City Clerk Thomas P. Duarte, City Attorney 2 STATE OF CALIFORNIA ) COUNTY OF ORANGE ) ss CITY OF COSTA MESA ) I, BRENDA GREEN, City Clerk of the City of Costa Mesa, DO HEREBY CERTIFY that the above and foregoing is the original of Resolution No. 16- and was duly passed and adopted by the City Council of the City of Costa Mesa at a regular meeting held on the 6t" day of December, 2016, by the following roll call vote, to wit: AYES: COUNCIL MEMBERS: NOES: COUNCIL MEMBERS: ABSENT: COUNCIL MEMBERS: IN WITNESS WHEREOF, I have hereby set my hand and affixed the seal of the City of Costa Mesa this _ day of December, 2016. (SEAL) BRENDA GREEN, CITY CLERK 3 City of Costa Mesa M2 Expenditure Report Fiscal Year Ended June 30, 2016 ATTACHMENT 2 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: Stephen Dunivent Director of Finance (Print Name) Date — *Wi� owuv�� Signature City of Costa Mesa Schedule 1 M2 Expenditure Report Fiscal Year Ended June 30, 2016 Beginning and Ending Balances Description Balances at Beginning of Fiscal Year ..........------ ;M2 Fair Share --------------------------------------I-------------------------- ;M2 Fair Share Interest I---------------------------- --------------------------- ;M2 CTFP ----------------------------------------------------------------- W2 CTFP Interest Other Funding -----'--------M2---------------------------2222-- ---------------- ;Other --------2222-- ;Other M2Interest _..-..r--------------------------------------------------------- ------ ;Other* ---------------------------------------------------------- Balances at Beginning of Fiscal Year (Sum Lines 1 to 7) --------------------------------------------------- :Monies Made Available During Fiscal Year ----------- Total Monies Available (Sum Lines 8 & 9) ;Expenditures During Fiscal Year ---------------------------------------------------------------- Balances at End of Fiscal Year ---------------------------------------------------------------- M2 Fair Share --------------------------------------------------------- ;M2 Fair Share Interest -------- ------------------------------------------------------- ;M2 CTFP ._....r--------------------------------------------------------- ;M2 CTFP Interest 'Other M2 Funding ----------------- Other M2 Interest --------------------------------------------------------- ;Other* * Please provide a specific description Line No. I Amount 1 $ 4,899,752 ---- ---- 2 ---------- $ - --------- 3$ ------------------------ (859,995) --------- 4 ------------------------ - 22-- ---22----------------------- 5 -$ $ (1,647,984) 6 ------------ $------------------------ ---------- - 7 ----8 --- --------- $2222------- -------------2-391------ _ 2,391,774 9 $..........2,432,201 10 --------- $4,823,975 ------ ----------------- 11 $ 4,635,217 12 ---2222-- $ ----------------- 4,117,804 13 $ ---2222-- 14 -------------------2222-' $ (1,640,434) 15 $- --------- 16 ------------------------ $ (2,288,612) --- ----- 17 ----------- $ ------ - ... .... 1 .---------------------- $ CTFP - Comprehensive Transportation Funding Programs City of Costa Mesa M2 Expenditure Report Schedule 2 Fiscal Year Ended June 30, 2016 Sources and Uses Description Line Amount No. Project Revenues: --------- - - - - --- - Interest Total Freeway Environmental Mitigation A -M --—- - - -- - -—- --------------- -- - - - - ---------- W2 Fair Share1 --------------- $ $ 2_,2.99,937 W2 Fair Share Interest2 -------------------------------------- ------------------ ----------------------------- $ 48,643 M 2 CTFP (Project O) 3 $ $ ------------------------------------------------------------- ;M2 CTFP Interest •---- -------- -- ----- ---------- ,---------------_-- ..................................... M2 Funding ---------------------------------------$ $ -----------83,5 0 8 ----- ;Other M2 Interest JL4 $ $ 31 ;Other* $ 83,590.00 $ 31.00 $ 83,621.00 TOTAL REVENUES (Sum lines 1 to 7) V $ 2,432,201 Expenditures: --------------- - - - - -- —----------- - - - - -- ----------------- Safe Transit Stops W Community Based Transit/Circulators W2 Fair Share -----------------•-. •--.........._..------. 9 ............................ $ 3,081,886 :M2 Fair Share Interest ---------------------------------------- 10_ $ 48,643 iM2 CTFP (Project O) 11 $ 780,439 ---------------- ;M2 CTFP Interest12 ------------------------------------------------------------ - - $ - :Other M2 Funding** --------- ------- 13 -------- ------------------ $ ------------------- 724,218 :Other M2 Interest ---------------------------------------- — 14 31 :Other* 15 $ _ - TOTAL EXPENDITURES (Sum lines 9 to 15) 16 $ 4,635,217 TOTAL BALANCE (Subtract line 16 from 8) 17 $ (2,203,016) * 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 Amount Interest Total Freeway Environmental Mitigation A -M $ $ $ Regional Traffic Signal Synchronization Program P Regional Traffic Signal Synchronization Program $ $ 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 $ 83,590.00 $ 31.00 $ 83,621.00 Community Based Transit/Circulators V $ _ $ $ _ Safe Transit Stops W Community Based Transit/Circulators $ $ Water Quality Program X 83,621.00 $ $ Total $ 83,590.00 $ 31.00 $ 83,621.00 Expenditures Project Description Project Amount Interest Total Freeway Environmental Mitigation A -M $ $ $ _ Regional Traffic Signal Synchronization Program P $ 191,681.00 $ $ 191,681.00 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 $ $ $ Community Based Transit/Circulators V $ 83,590.00 $ 31.00 $ 83,621.00 Safe Transit Stops W $ 80,416.00 $ - $ 80,416.00 Water Quality Program X $ 368,531.00 $ $ 368,531.00 Total $ 724,218.00 $ 31.00 $ 724,249.00 C m N a c 3 W O 4J inM a _v m N D f6 O a c m O1 G1 Y N City of Costa Mesa M2 Expenditure Report Fiscal Year Ended June 30, 2016 Fair Share Project List Schedule 4 PROJECT NAME AMOUNT EXPENDED ------------------------------------------------------------------ ---------------------------------------- The City expended Fairshare funds on Street Maintenance Citywide projects_ 3,080,736 Project scope;_ rehabilitation to various City streets in need of improvement -- ------------- ___ _ _________ in accordance with the Pavement Management System. ----------------------------------------------------------------------- ----------------------------- The City expended Fairshare funds on street rehabilitation projects --------------------------------------------------------------------------------------------------- 48,643 including- resurfacing asphalt concrete pavement/localized reconstruction ----- -- -- - ------------------------------------------------------ - -- --- ---- - - --- - of curbs and gutters, and sidewalk/installation and replacement of of----------------------------------- traffic control. -------------------------- --------------------- --------------------------------------------------------- -----------------------------•------------------------------------------------------------------- The City expended Fairshare funds for traffic data counts. ----------------------------- --------------------------------------------------------------------------------------------------------- ---------------------------------------------------------------------------------------------------------- --------------------------------------------------------------------------------- ---------------------------------------------------------------------------------------------------------- --------------------------------------------------------------------------------- ---------------------------------------------------------------------------------------------------------- ---------------------------------------------------------------------------------------------------------- ---------------------------------------------------------------------------------------------------------- --------------------------------------------------------------------------------------------------------- ---------------------------------------------------------------------------------------------------------- ---------------------------------------------------------------------------------------------------------- ---------------------------------------------------------------------------------------------------------- --------------------------------------------------------------------------------------------------------- ---------------------------------------------------------------------------------------------------------- --------------------------------------------------------------------------------------------------------- ----------------------------------------------------------------------------------------- --------------------------------------------------------------------------------------------------------- ---------------------------------------------- ..---------------------------------------------- ---------------------------------------------------------------------------------------------------------- ---------------------------------------------------------------------------------------------------------- --------------------------------------------------------------------------------------------------------- ---------------------------------------------------------------------------------- ---------------------------------------------------------------------------------------------------------- --------------------------------------------------- -------------------------------------------------- -------------------------------------------------------------------------- ---------------------------------------------------------------------------------------------------------- ----------------------------------------------------------------------------- ---------------------------------------------------------------------------------------------------------- I ---------------------------------------------------------------------------------------------------------- -------------------------------------------------------------------------------- 1,150 . ------------------------ ------------------------- -------- ---------------------- ------------------------- ....................... ------------------------- $ 3,130,529.00 DID