Agenda Report
Fullerton City Council
MEETING DATE: OCTOBER 4, 2022
TO: CITY COUNCIL / SUCCESSOR AGENCY
SUBMITTED BY: MEG McWADE, PUBLIC WORKS DIRECTOR
PREPARED BY: JEROME JOAQUIN, PUBLIC WORKS ADMINISTRATIVE MANAGER
DAVID GRANTHAM, PRINCIPAL CIVIL ENGINEER
SUBJECT: OCTA – MEASURE M2 ELIGIBILITY RENEWAL UPDATE
SUMMARY
Revision to the City’s Maintenance of Effort (MOE) Certification Form to include American Rescue Plan Act (ARPA) Revenue Replacement funded projects from the City’s Annual Residential Street Program to adhere to the Orange County of Transportation Authority’s (OCTA) Measure M2 program.
RECOMMENDATION
Receive and file.
CITY MANAGER REMARKS
The City Manager concurs with the staff recommendation. The City Manager believes the City should pursue discussions with OCTA as we move forward with this recent development.
PRIORITY POLICY STATEMENT
This item matches the following Priority Policy Statement:
Infrastructure and City Assets.
FISCAL IMPACT
The City will remain eligible for Measure M2 funding by complying with this requirement. The City anticipates its FY 2022-23 local fair share allocation will total approximately $2.7 million for the City to use for street improvements and other eligible activities.
DISCUSSION
Local jurisdictions must certify adherence to the eligibility guidelines annually, in accordance with the Measure M2 Ordinance. City Council reviewed Appendix I - MOE Certification Form, along with other pertinent required documents, on June 7, 2022.
Staff submitted the City’s M2 Eligibility package to OCTA for review and approval on June 16, 2022. OCTA informed the City on August 8, 2022 that it may no longer use transportation-related expenditures funded by Sanitation Fund to meet the City’s $4.4 million MOE Benchmark. Staff revised the City’s MOE Certification Form for FY 2022-23 to include the Annual Residential Street Program budgeted using ARPA Revenue Replacement Funds to comply with the Measure M2 program. This program has an approved $5.5 million budget which ensures the City’s compliance with its MOE Benchmark requirement.
The previous MOE Certification submittal did not include ARPA Revenue Replacement Funds because the City did not have the final decision on the eligibility of ARPA Revenue Replacement funded transportation-related expenditures at that time. Staff verified with the Division of Audits, Office of State Controller Betty T. Yee in late August and concluded that the ARPA Revenue Replacement Fund is discretionary in nature, similar to General Fund, which qualifies it for inclusion in the City’s MOE Certification form, provided the City expends it on transportation-related improvements.
Staff resubmitted the revised MOE Certification Form to OCTA on September 1, 2022. OCTA deemed the materials staff provided as complete and sufficient to put a recommended eligibility approval through the established committee process. Staff requests City Council receive and file this item.
Attachments:
Attachment 1 – Maintenance of Effort Certification Form FY 2022-23 (Original) Attachment 2 – Maintenance of Effort Certification Form FY 2022-23 (Revised) cc: City Manager Eric J. Levitt
OCTA – Measure M2 Eligibility Renewal Update
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