FOR THE COUNCIL MEETING OF FEBRUARY 21, 2023
COUNCIL AGENDA REPORT
TO: City Council
FROM: City Manager
Prepared by: Director of Public Works
SUBJECT: MEASURE A FIVE-YEAR LOCAL PROGRAM OF PROJECTS FOR FISCAL YEAR 2023/2024 THROUGH 2027/2028
RECOMMENDATION:
That the City Council adopt a Resolution approving the Measure A Five -Year Local Program of Projects for fiscal years 2023/2024 through 2027/2028; and certifying that the City of Santa Maria will provide sufficient funding in the 2023/2024 budget to meet the Measure A Maintenance of Effort requirement.
BACKGROUND:
In November 2008, Santa Barbara County voters approved the reauthorization of Measure D, an extension of the existing half -cent sales tax for transportation purposes known as Measure A. Over its 30 -year Iifespan, Measure A will provide more than one billion -in local sales tax revenues for transportation projects in Santa Barbara County.
Specifically, it will provide $455 million to northern Santa Barbara County for high -priority transportation projects and programs to address the current and future needs of local communities.
Measure A funds are essential for the current and future maintenance needs of the City's roadways, transportation facilities, and overall infrastructure year after year.
DISCUSSION:
Section 18 of the Measure A ordinance requires each local jurisdiction to annually hold a public hearing to adopt a five-year Program of Projects (POP). This meeting serves that purpose. Once approved, all local POP's are submitted to the Santa Barbara County Local Transportation Authority for approval.
The Five -Year Local POP (Attachment A) proposes projects that comply with the requirements of the Measure A ordinance. The Measure A project list for the current cycle allocates funds to local streets and transportation improvements.
Measure A requires the City to allocate 15 percent of its local share of Measure A funding to pedestrian and bicycle improvements, classified as "Alternate Transportation" Improvements. The Measure A program is divided into five-year segments with regard to Alternate Transportation, and the ordinance requires that the 15 percent requirement for Alternate Transportation expenditures be met completely over each five-year period.
The primary focus of the POP is the maintenance of the existing infrastructure within the City's rights -of -way. Other transportation funding sources, such as Gas Tax, SB1, LSTP (Local Surface Transportation Program), Growth Mitigation, and other grant programs are available for capital expenditures through the normal budget process.
Maintenance of Effort
Maintenance of Effort (MOE) is a common requirement of special tax measures. MOE is a taxpayer safeguard used to assure that new special tax revenues are not used to supplant historical discretionary funding levels. The MOE requirement is meant to maintain existing funding levels so that the new tax revenues will improve public infrastructure or services above current levels.
The Measure A ordinance contains a MOE requirement that identifies the minimum amount of local discretionary funding for local streets and roads. The MOE requirements were established based on the City of Santa Maria discretionary spending reported during Year One, Fiscal Year 2010-11, of the Measure A Program. This amount has increased incrementally over the lifetime of the program. The MOE requirement for FY 2022/2023 is estimated to be $4,160,332.
The Resolution contains a certification required by the Measure A ordinance. The City is required to certify that the City budget includes an amount of local discretionary funding to comply with the MOE requirements. The City of Santa Maria's 2022-24 budget includes sufficient discretionary funding to meet the estimated MOE requirement.
Fiscal Considerations
This action is expected to bring over $7.4 million to the City of Santa Maria in FY 2023/2024 and a projected total of $37 million over the next five years. Attachment A shows "Measure A Revenue Estimates from SBCAG" by year in the second row of the table under "Revenues." This does not include carryovers from the fund balance. The City must adopt a Resolution approving the Measure A Five -Year Local POP and certify the MOE requirement to secure this funding.
Impact to the Community
The Measure A Local POP will have a beneficial impact on the community by directing available Measure A revenues to the maintenance of the City's transportation infrastructure. This network of roadways, sidewalks, streetlights, traffic signals, drainage systems, and landscaping serves every resident of the community daily. The maintenance and operation of this system are of critical importance to nearly every aspect of the health of the community's infrastructure.
Alternatives
The recommended action is to approve the Resolution approving the five-year Measure A POP. The alternative to the recommended action would be for the City Council to direct staff to make changes to the POP and bring the item back to the City Council for approval.
This would result in a delay in submitting the approved POP to SBCAG, which could delay the City's funding.
BRETT FULGONI
Director Public Works
Attachments:
a. Five -Year Measure a Program of Projects
b. SBCAG TTAC Staff Report
=EGO
City of Santa Maria
Fiv e -Year Measure A Program of Projects (FYs 23/24 to 27/28) Measure A Local Street and Transportation Impro vements Submittal Form Lo cal Street & Tra nsp ortati on Impr ovements
Measure A Revenu es
Pro ject De scriptions
FY 2021/22
Act ual
Expe ndit ure s
FY 23/24
FY 24/25
FY 25/26
FY 26/27
FY 27/28
TOTAL
Rev enues
Measu re A Carry -Ove r
$ 6,704 .819
$ 7.180,839
$ 7,465,407
$ 6,876,892
$ 6 .129,285
$ 6,704,819
Measure A Reve nue Estimate s fro m SBCAG _
$ 7 396.974
S 7 599,618
$ 7,036,223
$ 7,351 942
$ 7 635 .572
$ 37 020 .329
Total
5 14 101 793
S 14 780 .457
$ 14 .501,630
$ 14 .228 834
$ 13 .764,857
$ 43,725,148
Maintainanc e, Improve me nt or Cons truc tion of R oadways & Bridges Roadway Maintenance and improvements
$ 2,708 958
$ 4,075.344
$ 4 300,338
$ 4 543 ,704
S 4,807 074
$ 5,092 .230
$ 22.818.690
Landscaping Maintenance
$ 55,000
$ 60 ,500
$ 66,550
$ 73 205
5 80.526
$ 335,781
Traffic Safety
Signage replacements and improvements
$ 243.540
$ 279.943
$ 300,379
$ 322,480
S 346 394
5 372 284
$ 1 621,480
Pavement delineation
S 428 320
$ 498 .548
$ 535,951
$ 576,472
S 620 392
5 645 .469
$ 2 876.832
Street lighting maintenance and improvements
S 265 282
$ 304 .889
$ 327 .739
$ 352,493
5 379 321
$ 411.631
$ 1.776.073
Street lighting upgrades - Underlit ne ighborho ods
$ 127.287
$ 312.723
$ 343,995
$ 378.395
S 416,234
$ 457.858
$ 1 .909 .205
Traffic signal maintenance and improve ments
$ 261 .702
$ 284,961
$ 306 ,205
$ 329,211
S 354,137
$ 381 ,156
$ 1,655,670
Highway Improvemen ts
TOTAL
5 4.035.088
$ 5 .811 .408
S 6.175.107
5 6 .569.305
$ 6.996.757
5 7 .441.153
5 32,993,731
Alternative Transportatio n Expenditures
Measure A Revenues
Pro ject Descriptio ns
FY 2021/22
Act ual
Expendit ures
FY 23/24
FY 24/25
FY 25/26
FY 26/27
FY 27/28
TOTAL
Main ten ance, Repair, Cons tru ction & Improv emen t of Bike & Ped Facilities, Safe Rou tes to Schoo l, & ADA Facilities
$ 513.129
$ 979.546
$ 1,089 943
$ 1.005.433
$ 1.052.791
$ 1,095.336
S 5,223,049
City-wide Sidewalk Inde x
$ -
$ 120,000
$ 40 000
$ 40.000
$ 40,000
$ 40,000
$ 280 000
Progra ms, Edu ca tion, & In ce ntives to Redu ce Single Occupan t Auto Trips or Transpo rtatio n Demand
$ 10.000
$ 10,000
$ 10 .000
$ 10 .000
$ 10 ,000
$ 10.000
$ 50,000
TOTAL ALTERNATIVE TRANSPORTATION EXPENDITURES
$ 523,129
$ 1,109,546
$ 1,139,943
S 1,055 .433
$ 1 .102.791
$ 1 .145,336
S 5,553,049
TOTAL EXPENDITURES
$ 4,558,217
$ 6,920,954
$ 7,315,050
$ 7,624,738
$ 8,099,549
$ 8,586,489
$ 38,546,780
Alternative Transportation Summary
TOTAL M EASURE A ALLOCATION (FY 2021/22 TO 2025/26)
$ 37,020,329
MINIM UM ALTERNATIVE PERCENTAGE PRESCRIBED BY INVESTMENT PLAN TO BE MET BY FY 2025/26 FOR FISCAL YEARS 2021/22 THROUGH 2025/26 15%
TOTAL MEASURE A ALLOCATION TO ALTERNATIVE TRANSPORTATION $ 5,553,049
PERCENTAG E OF MEASURE A ALLO CATIO N TO ALTERNATIVE
TRANSPORTATION
15%
(SBCAG
santa barbara county association of governm^+=
• 260 North San Antonio Road., Suite B • Santa Barbara, CA • 93110 • Phone! 805/961-8900 • Fax. 8051961-8901 • www sbcag org
TTAC STAFF REPORT
SUBJECT:
FY 2022-23 Measure A Maintenance of Effort and Alternative Transportation Compliance Requirements
MEETING DATE: October 6, 2022
STAFF CONTACT: Martha Gibbs
RECOMMENDATION:
Recommend for approval Measure A Maintenance of Effort (MOE) amounts for FY 2022-23.
AGENDA ITEM: 14
SUMMARY:
The Measure A Ordinance Number 5 requires local agencies to annually maintain an expenditure of non -measure 'local discretionary funds' for streets and road purposes adjusted annually by the rate of growth (or decline) of measure revenues. This is to ensure that the legislature's intent that countywide transportation sales taxes supplement rather than supplant local transportation investments. On October 21. 2010 the SBCAG Board approved an ordinance amendment which revised Maintenance of Effort requirements. The amendment adjusted Measure A baselines and established that the MOE requirement would be calculated for each agency by totaling the annual minimum expenditure requirements, as adjusted over distinct five-year periods. Local agencies must meet the MOE requirement by the end of the fifth fiscal year and the end of every fifth fiscal year thereafter.
Annually three requirements must be met by local agencies regarding Maintenance of Effort (MOE):
1) Certification that it will meet the MOE minimum expenditure requirement. 2) Evidence of reporting its local discretionary expenditures for streets and roads to the State Controller's Office; and
3) Evidence that it met the MOE requirement for every five-year period as verified through annual fiscal audits.
DISCUSSION:
Maintenance of Effort:
The Maintenance of Effort (MOE) requirements are adjusted annually based on revenue growth or decline for the preceding two fiscal years. In this case. a comparison of FY 20-21 to FY 21-22 actual revenue growth in order to determine the MOE requirement for FY 22-23.
SBCAG does not determine which revenues are considered discretionary vs. non -discretionary.
Amounts of discretionary and non -discretionary expenditures are self -reported by local agencies in certified financial statements submitted to the State Controller's Office each year. These amounts are compiled by the State Controller and published annually in the Local Streets and Roads Transactions Report. At the close of each fiscal year, an independent audit of each agency's financial statements is completed. These audits verify whether the agency has met the established MOE requirement.
SBCAG cannot allocate revenues to a local agency in a fiscal year unless the agency has certified that it will meet the MOE requirement. Local jurisdictions meet this requirement by including it in the authorizing resolution when their Measure A Program of Projects is adopted by their governing board and in so doing certifying that it will include in its budget for that fiscal year an amount of local discretionary funding for streets and roads purposes at least equal to its MOE amount.
Table 1 below lists MOE requirements for the five-year compliance period of FY 20-21 through FY 24-25. The required MOE has been adjusted based on year over year Measure A revenue growth or decline. The adjusted growth for FY 22-23 is 16.71%. This is based on total sales tax receipts of $46,257,034 in FY 20-21 as compared to $53,987,021 in FY 21-22 which reflects an increase in revenues of approximately 7.7 million.
Table 1- Maintenance of Effort Compliance Period of FY 2020-21 through FY 24-25
JURISDICTION
FY 20-21
FY 21-22
FY 22-23
FY 23-24
FY 24-25
Buellton
$ 144,549
$ 165,619
$ 193,295
Carpinteria
126,412
144,839
169,042
Goleta
797,598
913,859
1,066,573
Guadalupe
34,336
39,341
45,916
Lompoc
1,809,708
2,073,497
2,419,998
Santa Barbara
8,721,773
9,993,092
11,663,032
Santa Maria
3,111,152
3,564,646
4,160,332
Solvang
382,050
437,739
510,889
County of SB
1,646,040
1,885,973
2,201,137
Alternative Transportation
The Measure A Investment Plan requires each jurisdiction to spend a minimum percentage of their Local Street and Transportation Improvement funds on eligible Alternative Transportation projects. The Investment Plan states that this requirement must be met by the fifth year of the program, and every fifth year thereafter. On April 15, 2010 the SBCAG board adopted Resolution 10-13 clarifying that the Measure A local minimum Alternative Transportation percentage requirements for local jurisdictions be calculated cumulatively, with the percentages having to be met in the fifth year and every fifth year thereafter.
The Alternative Transportation requirements remain the same for each year within each distinct five-year period and are tracked annually through the audit process. The local minimum alternative transportation percentage requirements for local jurisdictions are calculated cumulatively, with the percentages having to be met in the fifth year.
Included in the Local Program of Projects submittal form for jurisdictions is a section to list their Local Alternative Transportation Projects. Eligible projects include but are not limited to; maintaining and improving bikeway and pedestrian facilities, safe routes to school improvements and reducing transit fares for the elderly and disabled.
Table 2 details the minimum percent of expenditures required by each agency on alternative transportation projects.
Table 2 Alternative Transportation Percentage Requirements Jurisdiction
5 Year Required % for
Altemative Transportation
Buellton
5%
Carpinteria
10%
Goleta
10%
Guadalupe
5%
Lompoc
15%
Santa Barbara
10%
Santa Maria
15%
Solvang
15%
North —County of SB
10%
South- County of SB
10%
COMMITTEE REVIEW:
Upon recommendation, staff will present the FY 22-23 Measure A Maintenance of Effort requirements to the SBCAG board for adoption at its October 20, 2022 meeting.
ATTACHMENTS:
A. Measure A Ordinance Section 27 — Maintenance of Effort
RESOLUTION NO.
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA
MARIA, CALIFORNIA, APPROVING THE MEASURE A FIVE-YEAR
LOCAL PROGRAM OF PROJECTS FOR FISCAL YEARS 2023/2024
THROUGH 2027/2028; AND CERTIFYING THAT THE CITY OF SANTA MARIA WILL PROVIDE SUFFICIENT FUNDING IN THE 2023/2024
BUDGET TO MEET THE MEASURE A MAINTENANCE OF EFFORT
REQUIREMENT
WHEREAS, on November 4, 2008, the voters of Santa Barbara County approved Ordinance No. 5, the Road Repair, Traffic Relief, and Transportation Safety Measure, known as Measure A; and
WHEREAS, the City of Santa Maria held a public hearing per Section 18 of the Ordinance; and
WHEREAS, the Ordinance provides that the Santa Barbara County Local Transportation Authority shall annually approve a Program of Projects (POP) submitted by local jurisdictions identifying those transportation projects eligible to use Measure A funds during the succeeding five-year period; and
WHEREAS, the City of Santa Maria was provided with an estimate of annual Measure A local revenues for 2023/2024 through 2027/2028 to develop a local POP.
NOW, THEREFORE, IT IS HEREBY RESOLVED by the City Council of the City of Santa Maria, California, as follows:
1. The City Council approves the Five -Year POP to be funded in part with Measure A revenues; and
2. The City of Santa Maria certifies that it will include in its budget an amount of local discretionary funding for local streets and roads sufficient to comply with MOE requirements contained in Section 27 of the Ordinance; and
3. The City of Santa Maria has complied with all other applicable provisions and requirements of the Ordinance; and
4. The Chief Deputy City Clerk is hereby authorized to make minor changes herein to address clerical errors, so long as substantial conformance of the intent of this document is maintained. In doing so, the Chief Deputy City Clerk shall consult with the City Manager and City Attorney concerning any changes deemed necessary.
/1/
PASSED AND ADOPTED at a regular meeting of the City Council of the City of Santa Maria held this 21st day of February 2023.
ATTEST:
Mayor
Chief Deputy City Clerk
APPROVED A&50 FORM:
City Attorney
APPROVED AS TO CONTENT
Departme !rector
City Manager