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Home My WebLink About05 MEASURE M2 FAIRSHARE ANNUAL EXPENDITURE REPORT DocuSign Envelope ID: 13365E7A-167C-4D5D-B116-A7307FOED7C9 Agenda Item 5 Reviewed: os AGENDA REPORT City Manager -'5W Finance Director _r MEETING DATE: NOVEMBER 17, 2020 TO: MATTHEW S. WEST, CITY MANAGER FROM: JASON AL-IMAM, DIRECTOR OF FINANCE SUBJECT: MEASURE M2 FAIRSHARE ANNUAL EXPENDITURE REPORT SUMMARY: The Local Transportation Authority Ordinance No. 3 requires the City to adopt an annual Expenditure Report to account for the Net Revenues, developer/traffic impact fees, and funds expended by the City, which satisfy the Maintenance of Effort (MOE). The Orange County Transportation Authority (OCTA) established the MOE benchmark in conjunction with passage of the original Measure M. MOE is a requirement that the City expend local funds on transportation related projects each fiscal year in order to be eligible to receive Measure M2 Fairshare funds; the City's required MOE expenditure for Fiscal Year 2019- 20 is $1,455,691. The required MOE expenditure for Fiscal Year 2020-21 has increased by $241,354 to $1,697,045. RECOMMENDATION: It is recommended that the Tustin City Council adopt Resolution No. 20-71, adopting the Measure M2 Expenditure Report for Fiscal Year 2019-2020 (attached), and direct staff to file the report with the Orange County Transportation Authority. FISCAL IMPACT: There is no fiscal impact associated with this Agenda Item other than staff time. CORRELATION TO THE STRATEGIC PLAN Filing the Measure M2 Fairshare Annual Expenditure Report contributes to the City's Strategic Plan Goal C, by ensuring that the City adheres to the Local Transportation Authority Ordinance Number 3 and continues to receive Measure M2 Faishare funds. BACKGROUND: Voters approved the renewed Measure M (referred to as Measure M2) on November 7, 2006. Measure M2 is a 30-year, multi-billion dollar program extension of the original Measure M (1991-2011) with a new slate of projects and programs that's managed by OCTA. With passage of Measure M2, additional eligibility requirements must be established and maintained by the City in order for the City to receive Measure M2 Fairshare funds, which represent a proportionate share of the 1/2% sales tax. DocuSign Envelope ID: 13365E7A-167C-4D5D-B116-A7307FOED7C9 Measure M2 Fairshare Expenditure Report November 17, 2020 Page 2 The Local Transportation Authority Ordinance No. 3 requires the City to adopt an annual Expenditure Report to account for Measure M2 Fairshare, other Measure M2 funding (includes Senior Mobility program), developer/traffic impact fees, and funds expended by the City which satisfy MOE. The Annual Expenditure Report must be adopted by the City Council and submitted to OCTA by the end of six (6) months following the end of the City's fiscal year. The Measure M2 Expenditure Report for Fiscal Year 2019-2020 is attached to this agenda report. For Fiscal Year 2019-2020, the City received $1,331,603 in M2 Fairshare revenues for the period of July 2019 through June 2020. The City expended $584,146 in Measure M2 sources during Fiscal Year 2019-2020. These expenditures include $530,129 in Fairshare funds(includes interest)for various projects(traffic signal controller and synchronization improvements, pavement maintenance, etc.). The Measure M2 program requires interest earned by Fairshare allocations to be expended in the same manner and under the same time constraints as regular Fairshare allocations. Therefore, interest earnings are expended prior to regular Fairshare allocations. The City expended $4,120,774 from various funds (including General Fund) in Fiscal Year 2019-2020, which satisfies Measure M2 MOE requirements. A portion of the MOE expenditures were for projects in Tustin Legacy. The ending fund balance for the Measure M2 fund is $6,971,725.78. AaiW CyAW49-1. '71i-,�&�) Jason AI-Imam Sean Tran Director of Finance Deputy Director of Finance Glenda Babbitt Management Analyst Attachments: Measure M2 Expenditure Report for Fiscal Year 2019-2020 Resolution No. 20-71 City of Tustin Schedule 1 M2 Expenditure Report Fiscal Year Ended June 30, 2020 Beginning and Ending Balances Description Line Amount Interest No. Balances at Beginning of Fiscal Year A-M;Freeway Projects 1 $ - $..................................................................................... -------------------------------------- 0-.: ----------" --------------------O :Regional Capacity Program(RCP) 2 $ 756,892.00... __________________ P :Regional Traffic Signal Synchronization Program(RTSSP) 3 $ - $ - -1. .................. ._._._.. Q ;Local Fair Share 4 $ 3,153,163.00 $ - R High Frequency Metrolink Service 5 $ - $ - ................ ....................................................... .............. ........................ ........................ S Transit Extensions to Metrolink 6 - ..._ ---------------------------------------------------------- ...... ..................... ..................... T :Convert Metrolink Station(s)to Regional Gateways that 7 $ $ :connect Orange County with High-Speed Rail Systems ,.._I. . .................................. ...................... :Senior Mobility Program or Senior Non-Emergency Medical 8 $ 60,251.00 $ - Program V :Community Based Transit/Circulators 9 $ - $ .. - .... ................................................................ ......... ........................ ......... ....... W :Safe Transit Stops 10 $ - $ .. ......._ ..... ......_ ... _._ ........... ..... ..__ -------------------= X :,Environmental Cleanup Program (Water Quality) 11 $ 2,079,554.00 $ - .................................... ........ ........................ ........................ :Other* 12 $ (2,387,409.00) $ - Balances at Beginning of Fiscal Year 13 $ 3,662,451.00 $ - ..................................................................... ........ ........................ .......................... :Monies Made Available During Fiscal Year 14 $ 3,768,909.00 $ 139,527 Total Monies Available(Sum Lines 13&14) 15 $ 7,431,360.00 $ 139,527 ..................................................................... ........ ........................ ........................ ;Expenditures During Fiscal Year 16 $ 444,619.00 $ 139,527 Balances at End of Fiscal Year A-M Freeway Projects - ...... ___17,__ .$------------------=--- - ---6--:'- O ;Regional Capacity Program(RCP) 18 $ 756,892.00 $ - P :Regional Traffic Signal Synchronization Program(RTSSP) 19 $ - $ - ................................................................ ......... ........................ ...................... . Q Local Fair Share 20 $ _.____4,089,124:00 $. . ... ...........:. .�............................................................ ......... --- R :High Frequency Metrolink Service 21 $ - $ - ......I................................................................ ........................ .................... S :Transit Extensions to Metrolink 22 $ - $ - ..................................................................... ......... ........................ ........................ T 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 $ 61,171.00 $ - Program ----------------------------------------------------------------- --------- ------------------------ ------------------------ V :Community Based Transit/Circulators 25 $ - $ ..................................................... ......... - .................. ........................ ........................ W :Safe Transit Stops 26 $ - $ - .._ -_ _---____ _______________ _____ _ -___-__--._ ._ _. ..........____--._-. -_-_-.---_-_._-_--.. X ;Environmental Cleanup Program(Water Quality) 27 $ 2,079,554.00 $ - ........................................................ ........ ......... .................... .. ._-------------------- :Other* 28 $ - $ - * Please provide a specific description City of Tustin M2 Expenditure Report Schedule 2 Fiscal Year Ended June 30, 2020 Sources and Uses Description Line Amount Interest No. Revenues: A-M:Freeway Projects1 $ $ i---------------- . . ................................ O :,Regional Capacity Program(RCP) 2 $ - $ - ------------------------------------- ------------------------------------- ------ ------------------- _---------- Regional ---------- Regional Traffic Signal Synchronization Program(RTSSP) 3 $ - $ -- •------ -------------•---------- -------- ------------------ Q Local Fair Share 4 $ 1,331,603 $ 134,487 - '---------------------------------------------------------------------------- -------- -- ----------- ------•--- -------- R ;High Frequency Metrolink Service 5 $ - $ - --- --- -- ------ -- ------- S ;Transit Extensions to Metrolink 6 $ - $ •---------------------------------------------------------------------------- ------ ------------------- ------------------- T :Convert Metrolink Station(s)to Regional Gateways that connect 7 $ $ :Orange County with High-Speed Rail Systems ---------------------------------------------------------------- - -- ------ ---- ---- ---------- ------- U -,Senior Mobility Program or Senior Non-Emergency Medical Program 8 $ 49,897 $ 5,040 -•---•-----......•-----------------------------------------•-•••••.....--•--•----- -------- ................... ................... V Community Based Transit/Circulators 9 $ - $ - •- --------------------------•-----------------------------------------------•-------- ------------------- ------------------ W :Safe Transit Stops 10 $ - $ Y--------------------------------------------------------•------------------ -------- --- -------------- ------- X :Environmental Cleanup Program(Water Quality) 11 $ - $ -•---•-------------------------------------•-------------------------------------- -------- ------------- ---- ---.. Other* 12 $ 2,387,409 $ - TOTAL REVENUES(Sum lines 1 to 12) 13 $ 3,768,909 $ 139,527 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 $ 395,642 $ 134,487 .. ..y-•••----------------------•--------•-•--•--•------•-------.-.-----.-------- R :High Frequency Metrolink Service18 $ - $ - -- ----------------------------------------------------------------------------- -------- --- -------------- ------------------- S Transit Extensions to Metrolink 19 $ _ $ _ - ------------------------------------------- - T :Convert Metrolink Station(s)to Regional Gateways that connect 20 $ $ -_---:Orange County with High_Speed Rail Systems--_ ---------- --------- U :Senior Mobility Program or Senior Non-Emergency Medical Program 21 $ 48,977 $ 5,040 ---------------------------------- ---- ------- -.----------------- ----------------- V ;Community Based Transit/Circulators 22 $ - $ - ..---Y---------------------------------------------------------------------------- ------- ------------------- ------------------- W :Safe Transit Stops 23 $ - $ - -----•------------------------------------------------------------•--------------- ------- -------------------•------------------- X :Environmental Cleanup Program(Water Quality) 24 $ - $ - A --------------------------------------------------------------------- ------- ---- ----------- —----- :Other* 25 $ - $ - TOTAL EXPENDITURES(Sum lines 14 to 25) 26 $ 444,619 $ 139,527 TOTAL BALANCE(Subtract line 26 from 13) 27 $ 3,324,290 $ - * Please provide a specific description *The"Otlher"f4u-re represents various ilvcal funds mi onies. City of Tustin Schedule 3 M2 Expenditure Report Fiscal Year Ended lune 30,2020 - Streets and Roads Detailed Use of Funds Ling Developed 0 P 0 X Other Omn Type of Expenditure MOE No Impact Fees? O P Interest Interest O X interest Interest Mzx M2 Other" TOTAL merest Indirectand/or Overhead 1 $ 188,625 $ - 5 - $ - $ - $ - $ 27,229 S - $ - 5 - $ - $ - S - $ 215,854 Consvut0on&Rlghtgf-Wey New Street Construction 2 $ 1,096,948 $ 786,613 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 1,883,561 .........._.............._._......__......____....__......_...____._._.....�"_.... _..__..._..._...._......_...._.......'"".,........._."._...............-......_....__.......__..........._..."_..._............_......._..._........._.......__....._..........,....._-...._...._....»....__.........._......_.__........._... _._""...._.»..,......._............_...__...._..........____..._._..._.__.._............_"... ... .."..." Street Remnstruction 3 $ - $ 1,822,259 $ - $ - $ - $ — $ - $ - $ - $ 1,822,259 Signe Safety Dev cas,&Street Lights 4 $ 10,074 $ 21,687 $ - $ - $ - $ - $ 14 $ 5 $ - $ - $ $ $ 31,780 Pedestrian Ways&Blkepaths 5 $ 173,250 $ 254,706 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 427,956 smrm 6 S - $ szD,n2 S - S - $ - $ - S - $ - 5 - S - $ - 5 - 5 - 3 szonz ................__.._....................._....._..._._..__...._.._-_____..._....__.._..._._...._.........._.._........_._. ........_..... __...._...._. _..._._ ....._...__._. ..._........._...._.. Storm Damage 7 $ -is - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - Total Conso uNon' S 97 $ s $ $".... ...._. Right ofWayAcquiston $ $ ..... S $ .. _ $ Total Comtructlon&Right-of-Way 10 $ 1,280,272 $ 3,405,977 $ - $ - $ - $ - $ 14 $ 5 $ - $ - $ - $ - $ - $ 4,686,268 .M....._...__......_.......... .._......_... .... ..._......_....-------- ..._....v.._ Mafntenana PHchinH 11 $ 67,984 $ $ - $ - $ - $ - $ 40,610 $ 14,937 $ - $ - $ - $ - $ 123,531 OveHaySealing $ $ - $ 231,016 $ 84,973 $ - $ - $ - $ - $ - $ 2.,-01,!1.6.8.9- g, ...»...St........Lihrs&Taffic Si nals_-...._.....-_.__....., _ _.___......__._. .._.................._ _..........._. _.._..._...._ .._."...._.. .-._.._...._ ...._ _ "_ _ _... ...._...._._ .."._...._.._ _...._.... ......,..........._ .._...... _ ..... .. .. .. ... ... ........... ..... .. .........._...... ...._..... _.. reet g g 13 $ - $ - $ - $ - $ - $ - $ 93,988 $ 34,572 $ - $ - $ - $ $ 128,560 .._.._..._. _...._..,_...._.............___ _...._.. ..._. ., .._..._... .,....... ..�.. _.__ _.....__... .-.......- .—.1-- ._ ...__ _.. ...._ _ __ .. _...__ _ .. .......... Storm Damage 14 ."_....__...._....__....-_...._...."_._.__...."...._......._.....................,_"-.._.._................ $ $ $ _..._$ __...._....._.... .......... _5.._.._..._ $_....._.._._ .."_..._...."$ _ $Other S".Pupose Maintenance 15 885,193 _.._....._..�.........-.__.$..�.__......._.__............-_ 885,193 7oal Maintenance' 16 $ 2,651,877 $ - $ - $ - $ - $ - $ 365,614 $ ]34p82 $ - $ - $ - $ - $ - $ 3,151,973 Omer v S - $ - $ - $ - $ - $ 2,785 $ - 5 -Is - $ 48,977 $ s,a4o S - S 56,802 GRAND TOTALS(So.Lines 1,10,16,17) 18 $ 4,120,774 $ 3,405,977 S - $ - $ -Is - $ 395,642 S 134,487 $ -I$ - $ 48,977 15 5,040 1$ - $ 8,110,897 Any California State Constitution Article xa streets and road eligible expenditure may be"counted'in local jurisdictions'calculation of MOE lithe activity is supported(funded)by a locaijurisdictiem'disaetionaryfunds(e.g.general fund).The California Stah Contmlleralso provides useful Information on Article XIX and the Stmets and Highways Cade eligible expenditures in its"Guidelines Relating to Gas Tax Expenditures for Cities and Counties".I have reviewed and am aware of Finance Director Cordlmnation 19 these guidelines and theirappikabi0ry in calculating and reporting on Maintenance of Effort expenditures. Fi nanea Of—initial: 'Includes direct charges for staff time Legend [Other M2 includes A-M,R,S,T,U,V,and W ProlaG Deaaription +Tramponmatlon related only A-M Freeway Projects `Please provide a specRk description O Ragioml Capacity Program(RCP) p Regional Traffic Signal Synchmnlation Program IRTSSP) O Local Fair Share R High Frequency Metrolink Service S Transit Eftensionsto Metrolink Convert Metrolink Stan,n(s)to Regional Gateways that connect Orange County with T High-Speed Rall Systems U Senior Mobility P rogram car Senior Non-Emergency Medical Program VCommunity Based TmmitlCimulators W SafeTansk Stops X EnNronmental Cleanup Progmm(Water Quality) City of Tustin Schedule 4 M2 Expenditure Report Fiscal Year Ended June 30, 2020 Local Fair Share Project List PROJECT NAME AMOUNT EXPENDED Traffic Signal Controller Upgrade/Replacement $ 93,370.00 ..................................................................................................... 17th Street Signal Synchronization $ 250.00 ------------------- ------------- -----------------------------------------*......................... Edinger Ave/Irvine Center Drive Traffic Signal Synchronization $ 9,569.00 ....................................................... . ..... ........... Tustin Ranch Road/Von Karmen Traffic Signal Synchronization $ 25,372.00 ------------------------------- ------------------- ---- Lansdowne/Valencia Traffic Signal Improvement $ 19.00 FY 18/19 Major Pavement Maintenance $ 250,168.00 ............................ . .............. ............ FY 19/20 Major Pavement Maintenance $ 121,367.00 .........................................................................................„_.__........._ Bank Service Charges $ 2,785.00 Direct charge for Labor associated with these projects $ 27,229.00 .......................................................................................................... .......................................................,....................---------.............---...... .......................................................................................................... .......................................................................................................... .......................................................................................................... .......................................................................................................... ......................................................................................................... .......................................................................................................... ..............................................................................................:.......... ................................................................................. ........................ ......................................................................................................... ........................................................................................................... .......................................................................................................... ................ ...................................................................................... .......................................................................................................... ................................................................................ ........................ ....................... .................................................................................. ................................................................................. ........................ ......................................................................................................... .......................................................................................................... .......................................................................................................... --------------------------------------------------------------------------------------------------------- .......................................................................................................... .......................................................................................................... ------------------------------------------------------ --------------------------------------------------- .......................................................................................................... ................................................................................ ........................ ................................................................................. ........................ .......................................................................................................... .......................................................................................................... ................................................................................. ........................ ................................................................................ ........................ ........................................................... ....................................... ................................................................................ ........................ ................................................................................ ........................ $ 530,129.00 City of Tustin Signature Page M2 Expenditure Report Fiscal Year Ended June 30, 2020 1 hereby certify that: �4 All the information attached herein and included in schedules 1 through 4 is true and accurate to the best of my knowledge; P 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; ti�The City of Tustin 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; 251 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 X The City of Tustin has expended in this fiscal year an amount of local discretionary funds for streets and roads purposes at least equal to the level of its maintenance of effort requirement. Jason AI-Imam t 1 1qj 2O Director of Finance (Print Name) Date QDyJT xa► *r Signat re RESOUTION NO. 20-71 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TUSTIN, CALIFORNIA, CONCERNING THE MEASURE M2 (M2) EXPENDITURE REPORT FOR THE CITY OF TUSTIN, CALIFORNIA 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 jurisdiction 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, BE IT RESOLVED that the City Council for the City of Tustin, California does hereby inform OCTA that: a) The M2 Expenditure Report 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. b) The M2 Expenditure Report is hereby adopted by the City of Tustin, California. c) The City of Tustin Finance Director is hereby authorized to sign and submit the M2 Expenditure Report to OCTA for the fiscal year ending June 30, 2020. Resolution No. 20-71 Pg. 1 STATE OF CALIFORNIA ) COUNTY OF ORANGE ) SS CITY OF TUSTIN ) I, Erica N. Yasuda, City Clerk and ex-officio Clerk of the City Council of the City of Tustin, California, do hereby certify that the whole number of the members of the City Council of the City of Tustin is five; that the above and foregoing Resolution No. 20-71 was duly passed and adopted at a regular meeting of the Tustin City Council, held on the 17th day of November, 2020, by the following vote: COUNCILMEMBER AYES: COUNCILMEMBER NOES: COUNCILMEMBER ABSTAINED: COUNCILMEMBER ABSENT: ERICA N. YASUDA City Clerk Resolution 20-71 Pg. 3