CITY OF LAGUNA NIGUEL
CITY COUNCIL AGENDA ITEM
989
To: Honorable Mayor and Council Members
FROM: Eric Hendrickson, Finance Director
DATE: December 20, 2022
SUBJECT: Measure M2 Annual Expenditure Report for FY 2021-22
RECOMMENDATION
Staff recommends that the City Council:
1. Adopt Resolution No. 2022-1415 (Attachment A), Adopting the Measure M2 Expenditure Report for Fiscal Year 2021-2022; and
2. Authorize the City's Finance Director to sign and file the report with the Orange County Transportation Authority.
BACKGROUND
In April 2006, Orange County voters approved the renewal of Measure M, the half-cent sales tax for transportation in Orange County, to take effect in April 2011 upon the expiration of the previous Measure M program. The renewed program, known as Measure M2, imposes a variety of new requirements on local agencies if they are to remain eligible to receive a share of the transportation funding. Among the is required to th requirements is an annual Measure M2 Expenditure Report, which is required to be prepared for each fiscal year and submitted to the Orange County Transportation Authority (OCTA) within six months of fiscal year-end. The report must be approved by the City Council.
The report must include an annual accounting of all M2 funds received by the local jurisdiction, as well as any developer/traffic impact fees and funds expended to satisfy maintenance of effort requirements. OCTA has designed a report template fashioned after the State Controller's annual Streets and Roads Report to assist local agencies in meeting these reporting requirements.
ANALYSIS
Exhibit 1 to the resolution is the Measure M2 Expenditure Report for FY 2021-22, covering the period July 1, 2021 through June 30, 2022. For FY 2021-22, the City received $1,463,178 in M2 fair share revenues and $99,660 in Senior Mobility Program
revenues. The City expended $1,767,460 of M2 funds on the Paseo de Colinas Groundwater Seepage project and the Residential Annual Resurfacing Program (Zones 1-2). For the Senior Mobility Program, $3,269 in revenues and interest was expended on senior transportation. The City is required to continue to expend a certain amount of its own discretionary funds for street related purposes and to not supplant those expenditures with Measure M2 funds. The City expended its own discretionary funds on street-related activities during FY 2021-22 in the amount of $1,632,527, which is more than the minimum maintenance of effort requirement of $908,566.
FISCAL REVIEW
This annual report is required to maintain eligibility to receive M2 funding. Failure to adhere to eligibility requirements may result in suspension of funds until such time as satisfactory compliance is achieved.
LEGAL REVIEW
The City Attorney's Office has approved the resolution as to form.
CONCLUSION
Staff recommends that the City Council adopt Resolution No. 2022-1415 adopting the Measure M2 Annual Expenditure Report for FY 2021-2022 and authorize the Finance Director to sign and file the report with the Orange County Transportation Authority.
JamasaS Retownean Tre Hendride
Tamara S. Letourneau Eric Hendrickson
City Manager Finance Director
Attachments:
A. Resolution No. 2022-1415: Resolution of the City Council of the City of Laguna Niguel, California, Adopting the Measure M2 Expenditure Report for Fiscal Year 2021-2022
RESOLUTION NO. 2022-1415
RESOLUTION OF THE CITY COUNCIL
OF THE CITY OF LAGUNA NIGUEL, CALIFORNIA,
ADOPTING THE MEASURE M2 EXPENDITURE REPORT
FOR FISCAL YEAR 2021-2022
WHEREAS, local jurisdictions are required to meet eligibility requirements and submit eligibility verification packages to the Orange County Transportation Authority (OCTA) in order to remain eligible to receive M2 funds; and WHEREAS, local jurisdictions are required to adopt an annual M2 Expenditure Report as part of one of the eligibility requirements; and WHEREAS, local jurisdictions are required to account for Net Revenues, developer/traffic impact fees, and funds expended by local jurisdictions in the M2 Expenditure Report that satisfy the Maintenance of Effort requirements; and WHEREAS, the M2 Expenditure Report shall include all Net Revenue fund balances, interest earned and expenditures identified by type and program or project; and WHEREAS, the M2 Expenditure Report must be adopted and submitted to the 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 Laguna Niguel hereby resolves as follows:
1. The M2 Expenditure Report (attached as Exhibit 1) 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.
2. The M2 Expenditure Report for Fiscal Year 2021-2022 is hereby adopted by the City of Laguna Niguel.
3. The City of Laguna Niguel Finance Director is hereby authorized to sign and submit the M2 Expenditure Report to OCTA for the fiscal year ending June 30, 2022.
Resolution No. 2022-1415 Page 2
PASSED, APPROVED AND ADOPTED this 20th day of December, 2022.
Sandy Rains, Mayor
ATTEST:
Marissa Asistin
City Clerk
Exhibits
1. Annual Measure M2 Expenditure Report
City of Laguna Niguel Schedule 1
M2 Expenditure Report
Fiscal Year Ended June 30, 2022
Beginning and Ending Balances
Line
Description Amount Interest
No.
Balances at Beginning of Fiscal Year
A-M Freeway Projects 1
Regional Capacity Program (RCP) 2 $ (174,661.00)
Regional Traffic Signal Synchronization Program (RTSSP) 3 $ @ Local Fair Share 4 2,707,231.00 S
R High Frequency Metrolink Service 5 $ $
Transit Extensions to Metrolink 6 $
Convert Metrolink Station(s) to Regional Gateways that
T 7 $
connect Orange County with High-Speed Rail Systems
Senior Mobility Program or Senior Non-Emergency Medical U 8 297,431.00 $
Program
V Community Based Transit/Circulators 9 $
W Safe Transit Stops 10 $
X !Environmental Cleanup Program (Water Quality) 11 $
Other* 12 $
Balances at Beginning of Fiscal Year 13 $ 2,830,001.00
Monies Made Available During Fiscal Year 14 S 1,562,838.00 695 Total Monies Available (Sum Lines 13 & 14) 15 4,392,839.00 695 Expenditures During Fiscal Year 16 1,845,121.00 695
Balances at End of Fiscal Year
A-M Freeway Projects 17 $
• Regional Capacity Program (RCP) 18 $ (174,661.00) $
P Regional Traffic Signal Synchronization Program (RTSSP) 19 Q Local Fair Share 20 $ 2,403,482.00
R High Frequency Metrolink Service 21
S Transit Extensions to Metrolink 22 $
Convert Metrolink Station(s) to Regional Gateways that
T 23 $
connect Orange County with High-Speed Rail Systems
Senior Mobility Program or Senior Non-Emergency Medical U 24 $ 393,983.00 $
Program
V Community Based Transit/Circulators 25 (75,087.00) $
W iSafe Transit Stops 26 $ $
X Environmental Cleanup Program (Water Quality) 27 $
Other* 28
* Please provide a specific description
City of Laguna Niguel M2 Expenditure Report Schedule 2
Fiscal Year Ended June 30, 2022
Sources and Uses
Line
Description Amount Interest
No.
Revenues:
A-M Freeway Projects 1
O Regional Capacity Program (RCP) 2 en e
P ¡Regional Traffic Signal Synchronization Program (RTSSP) 3 $ $ Q ¡Local Fair Share 4 1,463,178 533
R ¡High Frequency Metrolink Service in es es
i Transit Extensions to Metrolink $
(Convert Metrolink Station(s) to Regional Gateways that connect T 7 $ $
Orange County with High-Speed Rail Systems
U 'Senior Mobility Program or Senior Non-Emergency Medical Program 8 99,660 S 162 V: Community Based Transit/Circulators 9
W Safe Transit Stops 10
is uses es
X Environmental Cleanup Program (Water Quality) 11
Other* 12
TOTAL REVENUES (Sum lines 1 to 12) 13 1,562,838 S 695
Expenditures:
A-M. Freeway Projects 14
¡Regional Capacity Program (RCP 15 us us es
P Regional Traffic Signal Synchronization Program (RTSSP) 16 Q Local Fair Share 17 $ 1,766,927 533
R High Frequency Metrolink Service 18 $
Transit Extensions to Metrolink 19 $
Convert Metrolink Station(s) to Regional Gateways that connect 20 $
Orange County with High-Speed Rail Systems
:Senior Mobility Program or Senior Non-Emergency Medical Program 21 $ 3,107 $ 162 Community Based Transit/Circulators 22 75,087
W Safe Transit Stops 23 $
X Environmental Cleanup Program (Water Quality) 24 $
Other* 25
TOTAL EXPENDITURES (Sum lines 14 to 25) 26 1,845,121 695 TOTAL BALANCE (Subtract line 26 from 13) 27 (282,283)
* Please provide a specific description
City of Laguna Niguel Schedule 3
M2 Expenditure Report
Fiscal Year Ended June 30, 2022
Streets and Roads Detailed Use of Funds
Developer / Other
Type of Expenditure Line MOE Other
impact Fees" M2 Other" TOTAL
Interest interest Interest interes
Interest
indirect and/or Overhead
Construction & Right-of-Way
New Street Construction
Street Reconstruction 1,761,717 1,762,250
en us
Signals, Safety Devices, & Street Lights
Pedestrian Ways & Bikepaths in
Storm Drains S,210 S, 210
Storm Damage
Total Construction" 1,766,927 1,767,460
Right of Way Acquisition
rotal Construction & Right-of- Way 1,766.927 1,767,460
Maintenance
Patching
Overlay & Sealing
Street Lights & Traffic Signals us! A SA
Storm Damage
Other Street Purpose Maintenance 1,632,527 78,194 162 1,710,883 Total Maintenance' 1,632,527 78,194 1,710,883
Other
GRAND TOTALS (Sum Lines 1, 10, 16, 17) 1,632,527 $ $ 1,766,927 S 533| S 78,194 S 162 $ 3,478,343 Any California State Constitution Article XIX streets and road eligible expenditure may be "counted" in local jurisdictions" calculation of MOE if the activity is supported (funded by a local gunsdictions" discretionary funds (eg-general fund).
The California State Controller also provides usetul information on Article XIX and the Streets and Highways Code eligible expenditures in its "Guidelines Relating to Gas Tax Expenditures for Cities and Counties" I have reviewed and am awar Finance Director Confirmation of these guidelines and their a ability in calculating and reporting on Maintenance of Effort expenditures Finance Director initial:
' Includes direct charges for staff time Legend
" Other M2 includes A.M, R,S,T,U,V, and W Project [Description * Trespaide a specte description A-M Freeway Projects
Regional Capacity Program (RCP)
Regional Traffic Signal Synchronization Program (RTSSP
Local Fair Share
High Frequency Metrolink Service
Transit Extensions to Metrolink
Convert Metrolink Station(s) to Regional Gateways that connect Orange County with -
High-Speed Rail Systems
Senior Mobility Program or Senior Non-Emergency Medical Program Community Based Transit/Circulators
Safe Transit Stops
Environmental Cleanup Program (Water Quality)
City of Laguna Niguel Schedule 4
M2 Expenditure Report
Fiscal Year Ended June 30, 2022
Local Fair Share Project List
PROJECT NAME AMOUNT EXPENDED
Residential Annual Resurfacing Program (Zones 1 & 2) 1,762,250.00 Paseo de Colinas Groundwater Seepage 5,210.00
1,767,460.00
City of Laguna Niguel Signature Page
M2 Expenditure Report
Fiscal Year Ended June 30, 2022
I hereby certify that:
• All the information attached herein and included in schedules 1 through 4 is true and accurate to the best of my knowledge;
• 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;
• The City of Laguna Niguel is aware of the State Controller's "Guidelines Relating to Gas Tax Expenditures for Cities and Counties", which is a guide for determining MOE Expenditures for M2 Eligibility purposes; • The City's Expenditure Report is in compliance with direction provided in the State Controller's "Guidelines Relating to Gas Tax Expenditures for Cities and Counties;" and • The City of Laguna Niguel has expended in this fiscal year an amount of local discretionary funds for streets and roads purposes at least equal to one of the maintenance of effort requirements below'°:
A) The City met the existing FY 2021-22 MOE benchmark dollar amount.
B) The City met a proportional MOE benchmark amount of FY 2020-21 General Funds Revenues that is at least equal to the percent listed in column C of Exhibit 2 in the M2 Eligibility Guidelines. 13 Eric Hendrickson 12/20/2022
Director of Finance (Print Name) Date
Ern Pandaba
Signature
13 An Actual General Fund Revenue excerpt from a jurisdiction's Annual Comprehensive Finance Report (ACFR) must be provided as backup documentation.