CITY OF LAGUNA NIGUEL
CITY COUNCIL AGENDA ITEM
To: Honorable Mayor and Council Members
FROM: Trevor Agrelius, Finance Director
DATE: December 17, 2024
SUBJECT: Measure M2 Annual Expenditure Report for FY 2023-24
RECOMMENDATION
Staff recommends that the City Council:
1. Adopt Resolution No. 2024-1496 (Attachment A), Adopting the Measure M2 Expenditure Report for Fiscal Year 2023-2024; 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 2023- 2024, covering the period July 1, 2023, through June 30, 2024. For Fiscal Year 2023- 2024, the City received $1,567,472 in M2 fair share revenues and $107,401 in Senior Mobility Program revenues. Additionally, the City received $376,487 as a
reimbursement for expenditures associated with the Crown Valley Widening Project, and $26,471 in reimbursements for the Laguna Niguel Summer Trolley Program. The City expended $2,234,899 of M2 funds for the year, primarily on the Residential Annual Resurfacing Program (Zones 3-4). For the Senior Mobility Program, $77,730 in revenues and interest was expended on senior transportation. The City also spent $130,080 on the Laguna Niguel Summer Trolley Program, which will be reimbursed in a subsequent year.
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. This requirement is more commonly referred to as the maintenance of effort requirement. The City's maintenance of effort requirement for Fiscal Year 2023-2024 was $988,702. The City expended its own discretionary funds on street-related activities during Fiscal Year 2023-2024 in the amount of $1,579,955, which is more than the established minimum maintenance of effort requirement.
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. 2024-1496 (Attachment A), Adopting the Measure M2 Expenditure Report for Fiscal Year 2023-2024; and
2. Authorize the City's Finance Director to sign and file the report with the Orange County Transportation Authority.
Oustin a Martin An
fol:
Tamara $. Letourneau Trevor Agrelius
City Manager Finance Director
Attachments:
A. Resolution No. 2024-1496: Resolution of the City Council of the City of Laguna Niguel, California, Adopting the Measure M2 Expenditure Report for Fiscal Year 2023-2024
ATTACHMENT A
Resolution No. 2024-1496
RESOLUTION NO. 2024-1496
RESOLUTION OF THE CITY COUNCIL
OF THE CITY OF LAGUNA NIGUEL, CALIFORNIA,
ADOPTING THE MEASURE M2 EXPENDITURE REPORT
FOR FISCAL YEAR 2023-2024
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 2023-2024 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, 2024.
Resolution No. 2024-1496 Page 2
PASSED, APPROVED AND ADOPTED this 17th day of December, 2024.
Ray Gennawey, Mayor
ATTEST:
Marissa J. Asistin
City Clerk
Exhibits
1. Annual Measure M2 Expenditure Report
Exhibit 1
2024 Draft M2 Expenditure Report
City of Laguna Niguel
Schedule 1
City of Laguna Niguel
M2 Expenditure Report
Fiscal Year Ended June 30, 2024
Beginning and Ending Balances
Line Amount Interest
Description No.
Balances at Beginning of Fiscal Year
A-M Freeway Projects (274,661.00)
2 $
Regional Capacity Program (RCP)
Regional Traffic Signal Synchronization Program (RTSSP) 3 $ Local Fair Share 4 3,258,839.00
High Frequency Metrolink Service 5
S :Transit Extensions to Metrolink 6 $
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 $ $ 8 428,378.00
U
Program
V Community Based Transit/Circulators (260,354.00
W Safe Transit Stops 10 $
X Environmental Cleanup Program (Water Quality) 11 $
:Other* 12
Balances at Beginning of Fiscal Year 13 3,252,202.00
Monies Made Available During Fiscal Year 14 2,077,831.05 96,412 Total Monies Available (Sum Lines 13 & 14) 15 $ 5,330,033.05 96,412 Expenditures During Fiscal Year 16 2,346,297.00 $ 96,412 Balances at End of Fiscal Year
A-M Freeway Projects 17
18 201,826.00
• Regional Capacity Program (RCP)
P Regional Traffic Signal Synchronization Program (RTSSP) 19 Q Local Fair Share 20 2,669,074.00 $
R High Frequency Metrolink Service 21 $
Transit Extensions to Metrolink 22 $
S
Convert Metrolink Station(s) to Regional Gateways that
23 $
connect Orange County with High-Speed Rail Systems
Senior Mobility Program or Senior Non-Emergency Medical 24 $ 476,799.00 $ U
Program
V Community Based Transit/Circulators (363,962.95) $
Safe Transit Stops
Environmental Cleanup Program (Water Quality)
....
Other*
* Please provide a specific description
City of Laguna Niguel M2 Expenditure Report Schedule 2
Fiscal Year Ended June 30, 2024
Sources and Uses
Line Interest
Description Amount
No.
Revenues:
A-M Freeway Projects 1 $
O Regional Capacity Program (RCP) 376,487
P Regional Traffic Signal Synchronization Program (RTSSP) 3 Q Local Fair Share 4 1,567,472 77,662
R High Frequency Metrolink Service 5 $
S : Transit Extensions to Metrolink 6 $ $
:Convert Metrolink Station(s) to Regional Gateways that connect T 7 $ $
Orange County with High-Speed Rail Systems
Senior Mobility Program or Senior Non-Emergency Medical Program 8 $ 107,401 18,750 Community Based Transit/Circulators 9 26,471
W Safe Transit Stops 10
X Environmental Cleanup Program (Water Quality) 11 $
Other* 12 $
TOTAL REVENUES (Sum lines 1 to 12) 13 2,077,831 96,412
Expenditures:
A-M: Freeway Projects 14 $
Regional Capacity Program (RCP) 15 $ S
P Regional Traffic Signal Synchronization Program (RTSSP) 16 $ Q : Local Fair Share 17 $ 2,157,237 77,662
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 58,980 18,750 V Community Based Transit/Circulators 22 en us en 130,080 $ W Safe Transit Stops 23
:Environmental Cleanup Program (Water Quality) 24 $
Other* 25
TOTAL EXPENDITURES (Sum lines 14 to 25) 26 S 2,346,297 $ 96,412 TOTAL BALANCE (Subtract line 26 from 13) 27 (268,466) S * Please provide a specific description
City of Laguna Niguel Schedule 3
M2 Expenditure Report
Fiscal Year Ended June 30, 2024
Streets and Roads Detailed Use of Funds
Other
Line Developer/ Other
Type of Expenditure MOE P M2 Other® TOTAL
No. Impact Fees" Interest Interest Interest Interest M2 Interest
Indirect and/or Overhead $
Construction & Right-of-Way
New Street Construction
Street Reconstruction $ 2,157,237.00 77,662,00 2,234,899 Signals, Safety Devices, & Street Lights
Pedestrian Ways & Bikepaths es es
Storm Drains $
Storm Damage $
Total Construction' $ $ 2,157,237.00 77,662,00 $ 2,234,899 Right of Way Acquisition $ $ $ $
Total Construction & Right-of-Way 10 $ $ 2,157,237.00 77,662.00 $ 2,234,899 Maintenance
Patching 11 $ $ $ $
Overlay & Sealing 12 $ $
Street Lights & Traffic Signals 13 $ $
Storm Damage 14 $
Other Street Purpose Maintenance 15 1,579,955.00 $ $ 189,060.00 18,750.00 1,787,765 Total Maintenance 16 $ 1,579,955.00 $ $ $ 189,060.00 1,787,765 Other 17
GRAND TOTALS (Sum Lines 1, 10, 16, 17) 18 1,579,955 $ 2,157,237 77,662 $ 189,060 4,022,664 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 jurisdictions' discretionary funds (e.g. general fund).
The California State Controller also provides useful 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 Finance Director Confirmation 19 aware of these guidelines and their applicability in calculating and reporting on Maintenance of Effort expenditures.
Finance Director initial:
* Includes direct charges for staff time Legend
2 Other M2 includes A-M. RSTU.V. and W Prolect i Description A-M Freeway Projects
Transportation related or Regional Capacity Program (RCP) Please provide a specific descriptis
Regional Traffic Signal Synchronization Program (RTSSP) Q / 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/Circulator:
> 3× Safe Transit Stops
Environmental Cleanup Program (Water Quality)
City of Laguna Niguel Schedule 4
M2 Expenditure Report
Fiscal Year Ended June 30, 2024
Local Fair Share Project List
PROJECT NAME AMOUNT EXPENDED
Residential Resurfacing Program (Zones 3 & 4) $ 2,040,142.00 Residential Resurfacing Program (Zones 5 - 6) 14,240.00 Trash Control Devices on Stormwater Catch Basins 2022 180,517.00 2,234,899.00
City of Laguna Niguel Signature Page
M2 Expenditure Report
Fiscal Year Ended June 30, 2024
I hereby certify that:
MAll the information attached herein and included in schedules 1 through 4 is true and accurate to the best of my knowledge;
M 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/County 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/County'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/County 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 2023-24 MOE benchmark dollar amount"
I revor Agrelius 12/9/2024
Director of Finance (Print Name) Date
An
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.