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HomeMy WebLinkAbout02 - CC-4 - Renewed Measure M2 Eligibility - 6/17/2014CITY COUNCIL AGENDA REPORT MEETING DATE: JUNE 17, 2014 SUBJECT: RENEWED MEASURE M2 ELIGIBILITY DATE: JUNE 5, 2014 FROM: PUBLIC SERVICES/ADMINISTRATION DIVISION PRESENTATION BY: ERNESTO MUNOZ, PUBLIC SERVICES DIRECTOR ITEM NUMBER: FOR FURTHER INFORMATION CONTACT: ALFA LOPEZ, MANAGEMENT ANALYST (714) 754-5024 RECOMMENDATION: Approve the City's Seven -Year Capital Improvement Program (CIP) for Fiscal Year 2014-15 through Fiscal Year 2020-21 (Attachment 1); 2. Approve the City's Local Signal Synchronization Plan Update (Attachment 2); 3. Authorize City Engineer to complete and submit the Pavement Management Plan; and 4. Approve the City's Maintenance of Effort (MOE) for Fiscal Year 2014-15 (Attachment 3). BACKGROUND: In November 1990, Orange County voters approved Measure M, a one-half cent sales tax increase for 26 years, to fund transportation projects in Orange County. Furthermore, in November 2006, the voters approved Renewal of Measure M (M2) for an additional thirty years, which became effective in April 2011. Renewed Measure M net revenues contribute to two (2) types of Renewed Measure M funding: Fair Share and Competitive. All Orange County cities are eligible for Fair Share funding, based on population, number of existing Master Plan of Arterial Highways centerline miles, and taxable sales. Cities must compete and be successful to receive grants under the Competitive component of the M2 funding. The Orange County Transportation Authority (OCTA) determines annual eligibility for M2 funds based upon specific elements cities must meet prior to June 30 every year. Once OCTA eligibility requirements are met, for the Fiscal Year 2014-15, the City of Costa Mesa is estimated to receive approximately $2.3 million in Fair Share funds. Fulfilling these requirements will also allow the City to qualify for competitive M2 grant funding. ANALYSIS: The Renewed Measure M Ordinance requires local jurisdictions to annually submit specific documentation to the Orange County Transportation Authority (OCTA) to be eligible for Fair Share and Competitive M2 funds. Staff has prepared the necessary submittal documents to satisfy the requirements and demonstrate eligibility to receive Measure M2 funds. A summary of those requirements is provided below: The City is required to update and adopt a Seven -Year Capital Improvement Program (CIP). The attached CIP List includes all capital transportation projects proposed from FY 14/15 to FY 20/21 (Attachment 1). The CIP is an extensive list of projects anticipated to meet and maintain the adopted traffic Level of Service (LOS) and Performance Standards in the City, as well as to keep a well maintained street network. A project must also be on the Seven -Year CIP list in order for it to be eligible for Renewed Measure M Competitive grant funds, or other types of State or Federal funds, should they become available. The City is also required to approve and maintain a Local Signal Synchronization Plan (LSSP) consistent with specific requirements. Each LSSP identifies traffic signal synchronization street routes, traffic signals, and how they may be synchronized with traffic signals on the street routes of adjoining jurisdictions. Each plan is to include a three-year scenario showing cost, available funding and phasing of capital, operations, and maintenance. In addition, an assessment of the signal synchronization efforts must be provided as well as details on the review and revision (as necessary) of the timing of traffic signals along the identified traffic signal synchronization street routes. LSSPs must be updated every three years starting June 30, 2014. Excerpts from the City's LSSP are included in Attachment 2. The City must adopt and update the Pavement Management Program (PMP) biennially and submit a copy of the PMP with a certification form. The Pavement Management Program is the City's strategic plan to manage the preservation, rehabilitation, and maintenance of paved roads by analyzing pavement life cycles, assessing overall system performance costs, and determining alternative strategies and costs necessary to improve paved roads. Staff is finalizing the update of the PMP for submittal by the June 30, 2014 deadline. The City is required to document and ensure that it maintains a minimum level of funding for annual street and road expenditures from sources other than Renewed Measure M funds, and that the Renewed Measure M funds are used to supplement, and not replace or supplant, existing general funds or other revenues used for street and road improvements. Attachment 3 includes the MOE for Fiscal Year 2014-15. The City is required to participate in Traffic Forums. City staff participated in various working group sessions hosted by OCTA. The City is required to establish a policy which requires new development to pay its fair share of transportation -related improvement associated with their new development and adopt a General Plan Circulation Element consistent with MPAH and agree to expend all Local Fair Share revenues received through Renewed Measure M within three years of receipt. it ALTERNATIVES CONSIDERED: Without the approval and submittal of the above -listed requirements to the Orange County Transportation Authority (OCTA), the City would not be eligible for funding, estimated at $2.3 million, and would not allow staff to compete for competitive grant funds from the County's Renewed Measure M one-half cent sales tax initiative for Fiscal Year 2014- 2015. Elimination of any projects from the Seven -Year CIP may jeopardize possible future grant funding for that particular project, should grant funding become available. FISCAL REVIEW: The City's Assistant Finance Director has prepared the Maintenance of Effort (MOE) form certifying that the City of Costa Mesa has budgeted and will meet the MOE benchmark requirement of $6,457,802 for the Fiscal Year 2014-15. The recommended actions will continue the City's eligibility for receiving Measure M2 funds. LEGAL REVIEW: None required with this action. CONCLUSION: The City of Costa Mesa, like other Orange County cities, is required to annually adopt and/or approve certain items in order to remain eligible for grant funds from Renewed Measure M. Accordingly, staff recommends that the City Council approve the proposed Seven -Year Capital Improvement Program (CIP), the Local Signal Synchronization Plan, and the Maintenance of Effort (MOE) certifying compliance with OCTA's Master Plan of Arterial Highways, and authorize submittal of the Pavement Management Plan. ALFA LOPEZ Management Analyst ERNESTO MUNOZ Public Services Director RAJA SETHURAMAN STEPHEN DUNIVENT Transportation Services Manager Interim Finance Director ATTACHMENTS: 1 7 -Year CIP FY 2014-15 throuah 2020-21 2 Local Signal Synchronization Plan Update 3 Maintenance of Effort (MOE) for Fiscal Year 2014-15 DISTRIBUTION: Chief Executive Officer Assistant Chief Executive Officer City Attorney City Clerk Division Staff 3