CITY OF LAGUNA NIGUEL
CITY COUNCIL AGENDA ITEM
To: Honorable Mayor and Council Members
FROM: Trevor Agrelius, Finance Director
DATE: December 19, 2023
SUBJECT: Measure M2 Annual Expenditure Report for FY 2022-23
RECOMMENDATION
Staff recommends that the City Council:
1. Adopt Resolution No. 2023-1458 (Attachment A), Adopting the Measure M2 Expenditure Report for Fiscal Year 2022-2023; 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 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 the 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 Fiscal Year 2022- 2023, covering the period July 1, 2022, through June 30, 2023. For Fiscal Year 2022- 2023, the City received $1,535,200 in M2 fair share revenues and $107,762 in Senior Mobility Program revenues. The City expended $685,226 of M2 funds on the
Residential Annual Resurfacing Program (Zones 3-4). For the Senior Mobility Program, $14,045 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 Fiscal Year 2022-2023 in the amount of $1,363,028, which is more than the established minimum maintenance of effort requirement of $990,064.
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:
1. Adopt Resolution No. 2023-1458 (Attachment A), Adopting the Measure M2 Expenditure Report for Fiscal Year 2022-2023; and
2. Authorize the City's Finance Director to sign and file the report with the Orange County Transportation Authority.
Samar SEptonseau In A
Tamara S. Letourneau Trevor Agrelius
City Manager Finance Director
Attachments:
A. Resolution No. 2023-1458: Resolution of the City Council of the City of Laguna Niguel, California, Adopting the Measure M2 Expenditure Report for Fiscal Year 2022-2023
ATTACHMENT A
Resolution No. 2023-1458
RESOLUTION NO. 2023-1458
RESOLUTION OF THE CITY COUNCIL
OF THE CITY OF LAGUNA NIGUEL, CALIFORNIA,
ADOPTING THE MEASURE M2 EXPENDITURE REPORT
FOR FISCAL YEAR 2022-2023
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 2022-2023 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, 2023.
Resolution No. 2023-1458 Page 2
PASSED, APPROVED AND ADOPTED this 19th day of December, 2023.
Kelly Jennings, Mayor
ATTEST:
Marissa J. Asistin
Deputy City Clerk
Exhibits
1. Annual Measure M2 Expenditure Report
Exhibit 1
2023 Draft M2 Expenditure Report
City of Laguna Niguel
City of Laguna Niguel Schedule 1
M2 Expenditure Report
Fiscal Year Ended June 30, 2023
Beginning and Ending Balances
Line Amount Interest
Description
No.
Balances at Beginning of Fiscal Year
A-M Freeway Projects $.
$ (27461.00) 3
Regional Capacity Program (RCP)
Regional Traffic Signal Synchronization Program (RTSSP) 3 $ $ Q Local Fair Share $ 2,403,482.00 $
High Frequency Metrolink Service $
S Transit Extensions to Metrolink $
Convert Metrolink Station(s) to Regional Gateways that $ $ 7 -
connect Orange County with High-Speed Rail Systems
Senior Mobility Program or Senior Non-Emergency Medical U 8 $ 393,983.00 $
Program
V Community Based Transit/Circulators $ (75,087.00) $
W Safe Transit Stops 10 $
Environmental Cleanup Program (Water Quality) 11 $ $
Other* 12 S
Balances at Beginning of Fiscal Year 13 2,547,717.00 $
Monies Made Available During Fiscal Year 14 1,642,962.00 S 6,061 Total Monies Available (Sum Lines 13 & 14) 15 $ 4,190,679.00 6,061 Expenditures During Fiscal Year 16 938,477.00 6,061
Balances at End of Fiscal Year
A-M Freeway Projects 17
O Regional Capacity Program (RCP) 18 $ (174,661.00) $
P Regional Traffic Signal Synchronization Program (RTSSP) 19 $ S Q Local Fair Share 20 3,258,839.00
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 $ 428,378.00
Program
V Community Based Transit/Circulators
(260,5400 S
Safe Transit Stops
* Enronmental Cleanup Program (Water Quality)
Other*
* Please provide a specific description
City of Laguna Niguel M2 Expenditure Report Schedule 2
Fiscal Year Ended June 30, 2023
Sources and Uses
Line Amount Interest
Description No.
Revenues:
A-M Freeway Projects 1
• : Regional Capacity Program (RCP) 2 $
P. Regional Traffic Signal Synchronization Program (RTSSP) $ Q Local Fair Share 1,535,200 5,383
R High Frequency Metrolink Service 5
S : Transit Extensions to Metrolink 6 $
Convert Metrolink Stations) to Regional Gateways that connect $ T $ -
Orange County with High-Speed Rail Systems
U Senior Mobility Program or Senior Non-Emergency Medical Program 8 107,762 678 V: Community Based Transit/Circulators
W Safe Transit Stops
x Environmental Cleanup Program (Water Quality) 11 $
Other* 12
TOTAL REVENUES (Sum lines 1 to 12) 13 1,642,962 6,061
Expenditures:
A-M Freeway Projects 14 $
O Regional Capacity Program (RCP) 15 $
P Regional Traffic Signal Synchronization Program (RTSSP) 16 Q: Local Fair Share 17 679,843 5,383
R High Frequency Metrolink Service 18 $
S Transit Extensions to Metrolink 19
:Convert Metrolink Station(s) to Regional Gateways that connect T 20
Orange County with High-Speed Rail Systems
U Senior Mobility Program or Senior Non-Emergency Medical Program 21 73,367 $ 678 V Community Based Transit/Circulators 22 185,267
W :Safe Transit Stops 23 $
Environmental Cleanup Program (Water Quality) 24
Other* 25
TOTAL EXPENDITURES (Sum lines 14 to 25) 26 938,477 6,061 TOTAL BALANCE (Subtract line 26 from 13) 27 704,485 $
* Please provide a specific description
City of Laguna Niguel Schedule 3
M2 Expenditure Report
Fiscal Year Ended June 30, 2023
Streets and Roads Detailed Use of Funds
Line Developer / Other
Other
Type of Expenditure No. MOE Impact Fees* x M2 Other® TOTAL Interest Interest Interest Interest M2°
Interest
ndirect and/or Overhead
Construction & Right-of-Way
New Street Construction N
Street Reconstruction 679,843.00 5,383.00
Signals, Safety Devices, & Street Lights
Pedestrian Ways & Bikepaths:
Storm Drains en
Storm Damage
Total Construction' 679,843.00 5,383,00 685,226
Right of Way Acquisition
Total Construction & Right-of-Way 10 $ 679,843.00 5,383.00 685,226 Maintenance
Patching
Overlay & Sealing
Street Lights & Traffic Signals
Storm Darnage
Other Street Purpose Maintenance $1,363,028.00 258,634.00 678,00 1,622,340 Total Maintenance' $ 1,363,028.00 258,634.00 678.00 1,622,340 Other
GRAND TOTALS (Sum Lines 1, 10, 16, 17) 1,363,028 $ 679 843 5.383 258,634 678 2,307,566 The calama sue contes do pride us adoration rican ese a is code let entire no uses eating or a Tax experies ries and one: are and am t Finance Director Confirmation aware of these guidelines and their applicability in calculating and reporting on Maintenance of Effort expenditures.
Finance Director initial: TA
* Includes direct charges for staff time Legend
• Other M2 includes A-M, R,S,T,U,V, and W Project Description * Pease provide a spect descration 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, 2023
Local Fair Share Project List
PROJECT NAME AMOUNT EXPENDED
Residential Resurfacing Program (Zones 3 - 4) 685,226.00 $ 685,226.00
City/County of Laguna Niguel Signature Page
M2 Expenditure Report
Fiscal Year Ended June 30, 2023
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;
x 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 or exceeding the FY 2022-23 MOE benchmark dollar amount" Trevor Agrelius 12/14/2023
Director of Finance (Print Name) Date
Signature
1" Jurisdictions are encouraged to submit MOE eligible expenditures higher than their MOE benchmark, so that should certain expenses be ruled ineligible during an MOE audit, the local jurisdiction still has sufficient MOE expenditures to demonstrate continued achievement of the MOE benchmark.