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CITY OF
s NEWPORT BEACH
`q44:09 City Council Staff Report
June 11, 2024
Agenda Item No. 16
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: David A. Webb, Public Works Director - 949-644-3311, [email protected]
PREPARED BY: Theresa Schweitzer, Public Works Finance/Administrative Manager - 949-644-3335, [email protected]
TITLE: Annual Measure M2 Eligibility Submittal
ABSTRACT:
The City of Newport Beach must annually submit certain documents in order to maintain eligibility to receive Measure M2 Fair Share and Competitive funding from the Orange County Transportation Authority (OCTA). The submittal documentation this year requires approval of an updated Measure M2 Seven -Year Capital Improvement Program (CIP).
RECOMMENDATIONS:
a) Determine this action is exempt from the California Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) and 15060(c)(3) of the CEQA Guidelines because this action will not result in a physical change to the environment, directly or indirectly; b) Adopt the Measure M2 Seven -Year Capital Improvement Program; and c) Direct staff to submit all necessary materials to OCTA to satisfy the FY 2024-25 Measure M2 annual eligibility requirements.
DISCUSSION:
On November 7, 2006, Orange County voters approved Ordinance No. 3, the Renewed Measure M (M2) multi -billion -dollar program extension of the original Measure M.
M2 authorized the imposition of a one-half cent retail transaction and use tax for a period of 30 years, starting in 2011.
Current M2 legislation provides local agencies with 18% of the sales tax revenue collected under a program called "Fair Share." The distribution to each local agency is based on a formula using population, miles of existing arterial highways located within each jurisdiction, and taxable sales. A forecast of Local Fair Share Funds was released by OCTA in April 2024 and the City' s apportionment is approximately $2.7 million in FY 2024-25 for local street projects under the Fair Share Program.
To maintain eligibility for Measure M2 funds, the City must satisfy the following requirements by June 30, 2024:
16-1
Annual Measure M2 Eligibility Submittal
June 11, 2024
Adopt a Measure M2 Seven -Year CIP that includes all projects to be funded partially or fully by Measure M2 dollars (Attachment A); and
2. Submit all other required documentation required by OCTA Fiscal Year 2024-25 Measure M2 Eligibility Guidelines.
The budgets shown on the Measure M2 Seven -Year CIP for Fiscal Years 2024-2025 to 2030-2031 are estimated based on anticipated spending and historic needs. The budget for Fiscal Year 2024-2025 is included in the proposed Capital Improvement Program budget for City Council adoption on June 11, 2024. Actual budgets for future years have not yet been established.
A standard item included in the City' s annual eligibility documentation is a Maintenance of Effort (MOE) Certification. This required certification is meant to ensure that the local jurisdiction maintains a minimum level of local street and road expenditures and that the M2 funds are used to supplement, rather than replace, local funds. The City has complied with this and all other eligibility requirements since the inception of the Measure M2 program.
The FY 2024-25 MOE benchmark for the City was established at $14,292,404. The MOE benchmark was most recently adjusted in 2023 and is adjusted every three years.
Historically, the City exceeds the benchmark by a considerable amount. Last year's MOE expenditures totaled $15.9 million.
Upon the City Council' s approval of the recommended actions, the City's completed eligibility packet will be transmitted to OCTA by the June 30, 2024, submission deadline.
FISCAL IMPACT:
Submittal of the eligibility documentation ensures that the City will continue to receive its Fair Share portion of the Measure M2 funds, as well as allow the City to participate in receiving additional funds through the Measure M2 Competitive grant funding programs.
This amounts to several million dollars in roadway -related funding each year and is a key part of the City's roadway maintenance program. Annually, OCTA prepares a 7-year funding estimate (see table below). Year over year increases are projected around 4 percent.
Estimated Measure M2 Local Fair Share Program Funding
FY2024-25
FY2025-26
FY2026-27
FY2027-28
FY2028-29
FY2029-30
FY2030-31
7 Year
Estimate
$2,673,402
$2,927,173
$3,010,969
$3,107,652
$3,175,639
$3,302,561
$3,435,187
$21,632,583
16-2
Annual Measure M2 Eligibility Submittal
June 11, 2024
ENVIRONMENTAL REVIEW:
Staff recommends the City Council find this action is not subject to the California Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) (the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment) and 15060(c)(3) (the activity is not a project as defined in Section 15378) of the CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3, because it has no potential for resulting in physical change to the environment, directly or indirectly.
NOTICING:
The agenda item has been noticed according to the Brown Act (72 hours in advance of the meeting at which the City Council considers the item).
ATTACHMENT:
Attachment A — Measure M2 Seven -Year Capital Improvement Program 16-3
ATTACHMENT A
Orange County Transportation Authority
FY 2024/25 - FY 2030/31 Capital Improvement Program
ITIPin IMPLEMENTING AGENCY Newport Beach, City
of
Local Project Number: 20-NBCH-CBT-3956
Additional Project IDs:
Type of Work: Transit
Type of Work Description: Transit - Service
Planning
Limits
Balboa Island and Corona del Mar
Project Notes
Other - Contributions.
Last Revised: 24-00 - In Progress
Project Title
Balboa Island/Corona del Mar Microtransit Feasibility Study Project Description
This project prepares a study to review the feasibility of a local transit program to serve the Balboa Island and Corona del Mar Communities.
FISCAL TOTAL
YEAR FUND TYPE ENG ROW CON/IMP O&M TOTAL ESCALATED
2025 PROJECT V - Community $0 $0 $0 $30,204 $30,204 $30,204 Circulators
2025 Other $0 $0 $0 $3,356 $3,356 $3,356
Totals: $0 $0 $0 $33,560 $33,560 $33,560
Total Programmed: $33,560I
- - ---- IMPLEMENTING AGENCY Newport Beach, City
of
Local Project Number: 16-NBCH-CBT-3832
Additional Project IDs:
Type of Work: Transit
Type of Work Description: Transit - Operations
and Maintenance
Limits
Balboa Peninsula
Project Notes
Other - Balboa Village Parking Management
District fund.
Last Revised: 24-00 - In
Project Title
Balboa Peninsula Trolley
Project Description
Shuttle program for the Balboa Peninsula area.
FISCAL TOTAL
YEAR FUND TYPE ENG ROW CON/IMP O&M TOTAL ESCALATED
2025 Other $0 $0 $0 $175,354 $175,354 $175,354
2025 PROJECT V - Community $0 $0 $0 $653 $653 $653
Circulators
Totals: $0 $0 $0 $176,007 $176,007 $176,007
Total Programmed: $176,0071
ITIP ID CP-10959 IMPLEMENTING AGENCY Newport Beach, City of
Local Project Number: 18-NBCH-CBT-3913 Project Title
Additional Project IDs: Balboa Peninsula Trolley Expansion Type of Work: Transit Project Description
Type of Work Description: Transit -Operations dMit Provide trolley service for an additional 5 weekends in August through to Labor Day an an enance
Limits
FISCAL
FUND TYPE ENG ROW CON/IMP O&M TOTAL TOTAL
Balboa Peninsula
YEAR
ESCALATED
Project Notes
2025
Other $0 $0 $0
$67,529 $67,529 $67,529
Other: Balboa Village Parking Management District
2025
PROJECT V - Community $0 $0 $0
$46,195 $46,195 $46,195
Circulators
Totals: $0 $0 $0
$113,724 $113,724 $113,724
Last Revised: 24-00 - In Progress
Total Programmed: $113,724
16-4
TIP ID CP-11932
IMPLEMENTING AGENCY Newport Beach, City
of
Local Project Number: 20-NBCH-ECP-3986
Project Title
Additional Project IDs:
Newport Bay Trash Wheel
Type of Work: Environmental Cleanup
Project Description
Type of Work Description: Environmental
Trash interceptor collection vessel that
captures trash floating in San Diego Creek from inland Orange Cleanup - Marina Trash Skimmer
County into Newport Bay.
Limits
FISCAL
FUND TYPE
YEAR
TOTAL
ENG ROW CON/IMP O&M TOTAL
ESCALATED
San Diego Creek Upstream of Jamboree Road
Bridge
2025 Environmental Cleanup
Program (ECP) - Tier 1
$0 $0 $500,000 $0 $500,000 $515,000
Project Notes
Other - Upper Newport Bay Restoration fund,
2025 Other
$0 $0 $1,957,394 $0 $1,957,394 $2,016,116
Contributions, and Environmental Liability fund.
Last Revised: 24-00 - In Progress
Totals: $0 $0 $2,457,394 $0 $2,457,394 $2,531,116
Total Programmed: $2,457,3941
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TIP ID CP-10982
IMPLEMENTING AGENCY Newport Beach, City
of
Local Project Number: N/A
Project Title
Additional Project IDs:
Various Pavement Rehabilitation
Projects
Type of Work: Road Maintenance
Project Description
Type of Work Description: Road Maintenance -
Various pavement
rehabilitation projects as
determined
by the Pavement Management Program and
Rehabilitation of roadway
field reviews for FY24/25 through
FY30/31.
Limits
FISCAL
YEAR
FUND TYPE
ENG
ROW CON/IMP
O&M TOTAL
TOTAL
ESCALATED
Citywide
Project Notes
2025
General Fund
$1,246,824
$0
$11,221,414
$0
$12,468,238
$12,804,880
General Fund: 32.5% Measure M2 Local
2025
Measure M2 Local
Fairshare
$639,076
$0
$5,751,689
$0
$6,390,765
$6,563,316
Fairshare: 16.6% Other: 33.0% Local Streets and
Roads apportionments: 9.8% Gas Tax: 8.1%
2025
Gas Tax
$309,637
$0
$2,786,733
$0
$3,096,370
$3,179,972
2025
Other
$1,267,415
$0
$11,406,739
$0
$12,674,154
$13,016,356
Local Streets and
2025
Roads
$376,790
$0
$3,391,115
$0
$3,767,905
$3,869,638
apportionments
Local Streets and
2026
Roads
$241,200
$0
$2,170,800
$0
$2,412,000
$2,544,202
apportionments
2026
General Fund
$526,200
$0
$4,735,800
$0
$5,262,000
$5,550,410
2026
Measure M2 Local
Fairshare
$300,000
$0
$2,700,000
$0
$3,000,000
$3,164,430
2026
Gas Tax
$320,000
$0
$2,880,000
$0
$3,200,000
$3,375,392
2026
Other
$40,000
$0
$360,000
$0
$400,000
$421,924
2027
Other
$40,000
$0
$360,000
$0
$400,000
$433,382
2027
General Fund
$492,500
$0
$4,432,500
$0
$4,925,000
$5,336,012
Local Streets and
2027
Roads
$211,300
$0
$1,901,700
$0
$2,113,000
$2,289,339
apportionments
2027
Gas Tax
$230,000
$0
$2,070,000
$0
$2,300,000
$2,491,945
2027
Measure M2 Local
Fairshare
$299 000
$0
$2,691,000
$0
$2,990,000
$3,239,528
2028
Measure M2 Local
Fairshare
$300,000
$0
$2,700,000
$0
$3,000,000
$3,338,874
2028
Gas Tax
$174,700
$0
$1,572,300
$0
$1,747,000
$1,944,338
2028
General Fund
$495,000
$0
$4,455,000
$0
$4,950,000
$5,509,142
2028
Other
$40,000
$0
$360,000
$0
$400,000
$445,183
Local Streets and
2028
Roads
$249,000
$0
$2,241,000
$0
$2,490,000
$2,771,265
apportionments
2029
Gas Tax
$286,700
$0
$2,580,300
$0
$2,867,000
$3,277,975
2029
Measure M2 Local
Fairshare
$300,000
$0
$2,700,000
$0
$3,000,000
$3,430,040
2029
Other
$40,000
$0
$360,000
$0
$400,000
$457,339
Local Streets and
2029
Roads
$223,100
$0
$2,007,900
$0
$2,231,000
$2,550,806
apportionments
2029
General Fund
$492,500
$0
$4,432,500
$0
$4,925,000
$5,630,982
Local Streets and
2030
Roads
$156,000
$0
$1,404,000
$0
$1,560,000
$1,832,449
apportionments
2030
Gas Tax
$191,500
$0
$1,723,500
$0
$1,915,000
$2,249,449
2030
Measure M2 Local
Fairshare
$300,000
$0
$2,700,000
$0
$3,000,000
$3,523,941
2030
General Fund
$477,900
$0
$4,301,100
$0
$4,779,000
$5,613,638
2031
Gas Tax
$189,550
$0
$1,705,950
$0
$1,895,500
$2,287,653
2031
General Fund
$485,200
$0
$4,366,800
$0
$4,852,000
$5,855,813
Local Streets and
2031
Roads
$239,100
$0
$2,151,900
$0
$2,391,000
$2,885,666
apportionments
2031
Measure M2 Local
Fairshare
$300,000
$0
$2,700,000
$0
$3,000,000
$3,620,659
Totals: $11,480,192 $0 $103,321,740 $0 $114,801,932 $125,505,938 (Last Revised: 24-00 - In Progress Total Programmed: $114,801,932 16-6
TIP ID CP-12393
IMPLEMENTING AGENCY Newport Beach, City
of
Local Project Number: N/A
Project Title
Additional Project IDs:
Various Transportation Projects
Type of Work: Traffic Signals
Project Description
Type of Work Description: Traffic Signals-
Replace and upgrade traffic signals and equipment
Various Transportation Projects regarding signage,
striping,
marking,
and signal rehabilitation.
Limits
FISCAL YEAR FUND TYPE ENG ROW CON/IMP
O&M TOTAL TOTAL ESCALATED
Citywide
2025 Gas Tax $17,200 $0
$154,800
$0
$172,000 $176,644
Project Notes
2025 General Fund $234,700 $0
$2,112,300
$0
$2,347,000 $2,410,369
Gas Tax - 2% General Fund - 98%
2026 General Fund $107,500 $0
$967,500
$0
$1,075,000 $1,133,921
2027 General Fund $107,500 $0
$967,500
$0
$1,075,000 $1,164,713
2028 General Fund $105,000 $0
$945,000
$0
$1,050,000 $1,168,606
2029 General Fund $107,500 $0
$967,500
$0
$1,075,000 $1,229,098
2030 General Fund $107,000 $0
$963,000
$0
$1,070,000 $1,256,872
2031 General Fund $107,000 $0
$963,000
$0
$1,070,000 $1,291,369
Totals: $893,400 $0 $8,040,600 $0 $8,934,000 $9,831,592 Last Revised: 24-00 - In Progress Total Programmed: $8,934,OOO1 IPnoi GnnGniTmiG AGENCY Newport Beach, City
Local Project Number: 20-NBCH-ICE-3966 Project Title
Additional Project IDs: West Coast Highway Intersection Improvements and Pedestrian Bridge Type of Work: Bridge Project Description
Type of Work Description: Bridge -Construction Construction of a 240 feet long bicycle and pedestrian bridge over heavily trafficked, 8 lane Superior of new bridge crossing Avenue. Includes new landings on the south-east and north-east corners of the intersections, as well as site improvements.
Limits FISCAL TOTAL
FUND TYPE ENG ROW CON/IMP O&M TOTAL
Bridge will span Superior Ave at the intersection of YEAR ESCALATED Pacific Coast Hwy and Balboa Blvd 2025
Project Notes
2029
2029
2029
Last Revised: 24-00 - In Progress
PROJECT V-
Community Circulators $1,400 $0 $0 $0 $1,400 $1,400
Community
PROJECT V - Community Circulators $0 $0 $14,709,500 $0 $14,709,500 $17,052,342 Agency Contribution $0 $0 $7,420,500 $0 $7,420,500 $8,602,393 Traffic Impact Fees $0 $0 $500,000 $0 $500,000 $579,637 Totals: $1,400 $0 $22,630,000 $0 $22,631,400 $26,235,772 Total Programmed: $22,631,400�
16-7
Measure M Seven Year Capital Improvement Program For Fiscal Years 2024-2025 through 2030-2031 City of Newport Beach
Year 1
Year 2
Year 3
Year 4
Year 5
Year 6
Year 7
Estimated
Project Name 24/25
25/26
26/27
27/28
28/29
29/30
30/31
Cost
Fund Source
%
Various Pavement 110,900
0 0
0 0
0 0
110,900
Contributions
0.1%
Rehabilitation Projects 3,096,370
3,200,000
2,300,000
1,747,000
2,867,000
1,915,000
2,391,000
17,516,370
Gas Tax
15.3%
12,468,238
5,262,000
4,925,000
4,950,000
4,925,000
4,779,000
4,852,000
42,161,238
General Fund
36.7%
6,390,765
3,000,000
2,990,000
3,000,000
3,000,000
3,000,000
3,000,000
24,380,765
Measure M Fair Share
21.2%
9,468,423
0 0
0 0
0 0
9,468,423
Neighborhood Enhancement
8.2%
1,164,000
0 0
0 0
0 0
1,164,000
Oceanfront
1.0%
3,831
0 0
0 0
0 0
3,831
Pacific Coast Highway Fund
0.0%
400,000
400,000
400,000
400,000
400,000
0 0
2,000,000
Parks Maintenance Master Plan
1.7%
3,767,905
2,412,000
2,113,000
2,490,000
2,231,000
1,560,000
1,895,500
16,469,405
SB1 - RMRA
14.3%
1,100,000
0 0
0 0
0 0
1,100,000
Tide and Submerged Lands - Capita
1.0%
400,000
0 0
0 0
0 0
400,000
Water
0.3%
27,000
0 0
0 0
0 0
27,000
Wastewater
0.0%
Subtotal 38.397.432
14.274.000
12.728.000
12.587.000
13.423.000
11.254.000
12.138.500
114.801.932
Total
100.0%
Various Transportation
Projects
Balboa Peninsula
Summer Trolley Project (17T13)
E
C/I
Subtotal
Subtotal
Balboa Peninsula Summer Trolley
Expansion Program (19T13)
Subtotal
3,839,743
1,427,400
1,272,800
1,258,700
1,342,300
1,125,400
1,213,850
34,557,689
12,846,600
11,455,200
11,328,300
12,080,700
10,128,600
10,924,650
172,000
0 0
0 0
0 0
172,000
Gas Tax
2,347,000
1,075,000
1,075,000
1,050,000
1,075,000
1,070,000
1,070,000
8,762,000
General Fund
2,519,000
1,075,000
1,075,000
1,050,000
1,075,000
1,070,000
1,070,000
8,934,000
Total
$653
$653
M Comp
$175,354
$175,354
Balboa Village Pkg Mgmt District
$176,007
$176,007
Total
46,195
46,195
M Comp
67,529
67,529
Balboa Village Pkg Mgmt District
113,724
113,724
Total
2%
98%
0%
100%
100%
41%
59%
100%
I:\Users\PBW\Shared\COUNCIL\FY 23-24\21 -Jun 11\Measure M2\M2_FY 24-25 7-yr CIP_TAS2 TGS 05/31/2024 16-8
Measure M Seven Year Capital Improvement Program For Fiscal Years 2024-2025 through 2030-2031 City of Newport Beach
Balboa Island/Corona del Mar 30,204
Microtransit Feasibility Study (21T13) 3,356
Subtotal 33,560
30,204 M Comp
3,356 Contributions
33,560 Total
90%
10%
100%
Newport Bay Water Wheel
943,630
943,630
Contributions
38%
(17X12)
1,013,754
1,013,754
Environmental Liability
41%
500,000
500,000
M Comp
20%
10 10
Tidelands
0%
Subtotal
2,457,394
2,457,394
Total
100%
West Coast Hwy Intersection
1,400
14,709,500
14,710,900
M Comp.
65%
Improvements and Pedestrian
0 7,420,500
7,420,500
FFP: Parks
33%
Bridge (21 R16)
500,000
500,000
Transportation & Circulation
2%
Subtotal
1,400
22,630,000
22,631,400
Total
100%
TOTAL PROJECTED BUDGET
43,698,517 15,349,000 13,803,000 13,637,000 37,128,000 12,324,000 13,208,500 149,148,017 I:\Users\PBW\Shared\COUNCIL\FY 23-24\21 -Jun 11\Measure M2\M2_FY 24-25 7-yr CIP_TAS2 TGS 05/31/2024 16-9
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16-10