HomeMy WebLinkAbout07 MEASURE M2 FAIRSHARE ANNUAL EXPENDITURE REPORTAgenda Item _______
Reviewed:
City Manager _______
Finance Director _______
MEETING DATE: NOVEMBER 15, 2022
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 2021-
22 is $1,697,045. This figure will remain the same through Fiscal Year 2022-23.
RECOMMENDATION:
It is recommended that the City Council adopt Resolution No. 22-61, adopting the
Measure M2 Expenditure Report for Fiscal Year 2021-2022 (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 Fairshare 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.
AGENDA REPORT
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Measure M2 Fairshare Expenditure Report
November 15, 2022
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 b y
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 2021-2022 is attached to this
agenda report. For Fiscal Year 2021-2022, the City received $2,023,597 in M2 Fairshare
revenues for the period of July 2021 through June 2022. The City expended $5,135,125
in Measure M2 sources during Fiscal Year 2021-2022. These expenditures include
$3,334,282 in Fairshare funds for various projects (traffic signal controller and
synchronization improvements, pavement maintenance, etc.). The City expended
$4,100,081 from various funds (including General Fund) in Fiscal Year 2021-2022, which
satisfies Measure M2 MOE requirements. A portion of the MOE expenditures were for
projects in Tustin Legacy.
Jason Al-Imam Sean Tran
Director of Finance Deputy Director of Finance
______________________________________
Glenda Babbitt
Management Analyst
Attachments: Measure M2 Expenditure Report for the Fiscal Year 2021-2022
Resolution No. 22-61
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City of Tustin
M2 Expenditure Report
Fiscal Year Ended June 30, 2022
Beginning and Ending Balances
Schedule 1
Line
No.Amount Interest
A-M Freeway Projects 1 -$ -$
O Regional Capacity Program (RCP) *2 1,506,510$ -$
P Regional Traffic Signal Synchronization Program (RTSSP)3 -$ -$
Q Local Fair Share *4 4,277,523$ -$
R High Frequency Metrolink Service 5 -$ -$
S Transit Extensions to Metrolink 6 -$ -$
T Convert Metrolink Station(s) to Regional Gateways that
connect Orange County with High-Speed Rail Systems 7 -$ -$
U Senior Mobility Program or Senior Non-Emergency Medical
Program 8 46,756$ -$
V Community Based Transit/Circulators 9 -$ -$
W Safe Transit Stops 10 -$ -$
X Environmental Cleanup Program (Water Quality) *11 200,000$ -$
Other*12 -$ -$
13 6,030,789$ -$
Monies Made Available During Fiscal Year 14 2,099,157$ -$
15 8,129,946$ -$
Expenditures During Fiscal Year 16 5,135,125$ -$
A-M Freeway Projects 17 -$ -$
O Regional Capacity Program (RCP)18 -$ -$
P Regional Traffic Signal Synchronization Program (RTSSP)19 -$ -$
Q Local Fair Share 20 2,966,839$ -$
R High Frequency Metrolink Service 21 -$ -$
S Transit Extensions to Metrolink 22 -$ -$
T Convert Metrolink Station(s) to Regional Gateways that
connect Orange County with High-Speed Rail Systems 23 -$ -$
U Senior Mobility Program or Senior Non-Emergency Medical
Program 24 27,983$ -$
V Community Based Transit/Circulators 25 -$ -$
W Safe Transit Stops 26 -$ -$
X Environmental Cleanup Program (Water Quality)27 -$ -$
Other*28 -$ -$
* Please provide a specific description
Adjustment to the beginning balances for Project O, Q, and X.
Description
Total Monies Available (Sum Lines 13 & 14)
Staff (Finance/PW) worked to reconcile project expenditures to ensure that expenditures were properly captured. The
effort yielded an increase to the beginning balance of Project O by $749,618 from $756,892 to $1,506,510. In addition, it
yielded an increase to the beginning balance of Project Q by $1,481,742 from $2,795,781 to $4,277,523. As well as a
decrease to the beginning balance of Project X by $2,231,360 from $2,431,360 to $200,000.
Balances at End of Fiscal Year
Balances at Beginning of Fiscal Year
Balances at Beginning of Fiscal Year
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City of Tustin M2 Expenditure Report
Fiscal Year Ended June 30, 2022
Sources and Uses
Schedule 2
Line
No. Amount Interest
A-M Freeway Projects 1 -$ -$
O Regional Capacity Program (RCP)2 -$
P Regional Traffic Signal Synchronization Program (RTSSP)3 -$ -$
Q Local Fair Share 4 2,023,597$ -$
R High Frequency Metrolink Service 5 -$ -$
S Transit Extensions to Metrolink 6 -$ -$
T Convert Metrolink Station(s) to Regional Gateways that connect
Orange County with High-Speed Rail Systems 7 -$ -$
U Senior Mobility Program or Senior Non-Emergency Medical Program 8 75,560$ -$
V Community Based Transit/Circulators 9 -$ -$
W Safe Transit Stops 10 -$ -$
X Environmental Cleanup Program (Water Quality)11 -$
Other*12 -$ -$
13 2,099,157$ -$
A-M Freeway Projects 14 -$ -$
O Regional Capacity Program (RCP)15 1,506,510$ -$
P Regional Traffic Signal Synchronization Program (RTSSP)16 -$ -$
Q Local Fair Share 17 3,334,282$ -$
R High Frequency Metrolink Service 18 -$ -$
S Transit Extensions to Metrolink 19 -$ -$
T Convert Metrolink Station(s) to Regional Gateways that connect
Orange County with High-Speed Rail Systems 20 -$ -$
U Senior Mobility Program or Senior Non-Emergency Medical Program 21 94,333$ -$
V Community Based Transit/Circulators 22 -$ -$
W Safe Transit Stops 23 -$ -$
X Environmental Cleanup Program (Water Quality)24 200,000$ -$
Other*25 -$ -$
26 5,135,125$ -$
27 (3,035,968)$ -$
* Please provide a specific description
Zero interest was allocated to Project Q and U due to allocated unrealized loss from the investment portfolio.
TOTAL BALANCE (Subtract line 26 from 13)
TOTAL EXPENDITURES (Sum lines 14 to 25)
Description
Revenues:
TOTAL REVENUES (Sum lines 1 to 12)
Expenditures:
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City of Tustin
M2 Expenditure Report
Fiscal Year Ended June 30, 2022
Streets and Roads Detailed Use of Funds
Schedule 3
Line
No.MOE Developer /
Impact Fees+O O
Interest P P
Interest Q Q
Interest X X
Interest
Other
M22
Other
M2
Interest
Other*TOTAL
1 -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$
New Street Construction 2 586,774.84$ 1,162,918.57$ 1,398,927.00$ -$ -$ -$ 221,296.86$ -$ -$ -$ -$ -$ -$ 3,369,917$
Street Reconstruction 3 115,747.86$ -$ 62,712.00$ -$ -$ -$ 13,832.83$ -$ -$ -$ -$ -$ -$ 192,293$
Signals, Safety Devices, & Street Lights 4 817,847.18$ 1,788,739.70$ 44,871.00$ -$ -$ -$ 771,911.86$ -$ -$ -$ -$ -$ -$ 3,423,370$
Pedestrian Ways & Bikepaths 5 254,778.30$ 425,570.53$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ 680,349$
Storm Drains 6 487,885.52$ 36,270.70$ -$ -$ -$ -$ 640,068.10$ -$ 200,000.00$ -$ -$ -$ -$ 1,364,224$
Storm Damage 7 -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$
8 2,263,033.70$ 3,413,499.50$ 1,506,510.00$ -$ -$ -$ 1,647,109.65$ -$ 200,000.00$ -$ -$ -$ -$ 9,030,153$
Right of Way Acquisition 9 -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$
10 2,263,033.70$ 3,413,499.50$ 1,506,510.00$ -$ -$ -$ 1,647,109.65$ -$ 200,000.00$ -$ -$ -$ -$ 9,030,153$
Patching 11 51,297.40$ -$ -$ -$ -$ -$ 300,839.47$ -$ -$ -$ -$ -$ -$ 352,137$
Overlay & Sealing 12 1,447,331.44$ -$ -$ -$ -$ -$ 230,725.33$ -$ -$ -$ -$ -$ -$ 1,678,057$
Street Lights & Traffic Signals 13 -$ -$ -$ -$ -$ -$ 55,227.23$ -$ -$ -$ -$ -$ -$ 55,227$
Storm Damage 14 -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$
Other Street Purpose Maintenance 15 338,418.68$ -$ -$ -$ -$ -$ 1,099,318.86$ -$ -$ -$ -$ -$ -$ 1,437,738$
16 1,837,047.52$ -$ -$ -$ -$ -$ 1,686,110.89$ -$ -$ -$ -$ -$ -$ 3,523,158$
17 -$ -$ -$ -$ -$ 1,061.04$ -$ -$ -$ 94,333.47$ -$ -$ 95,395$
18 4,100,081.22$ 3,413,499.50$ 1,506,510.00$ -$ -$ -$ 3,334,281.58$ -$ 200,000.00$ -$ 94,333.47$ -$ -$ 12,648,705.77$
19
1 Includes direct charges for staff time Legend
2 Other M2 includes A-M, R,S,T,U,V, and W Project
+ Transportation related only A-M
*Please provide a specific description O
P
Q
R
S
T
U
V
W
X
Finance Director Confirmation
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 aware of
these guidelines and their applicability in calculating and reporting on Maintenance of Effort expenditures.
Finance Director initial: _______________
Description
Transit Extensions to Metrolink
Safe Transit Stops
High Frequency Metrolink Service
Environmental Cleanup Program (Water Quality)
Senior Mobility Program or Senior Non-Emergency Medical Program
Community Based Transit/Circulators
Convert Metrolink Station(s) to Regional Gateways that connect Orange County with
High-Speed Rail Systems
Freeway Projects
Regional Capacity Program (RCP)
Local Fair Share
Regional Traffic Signal Synchronization Program (RTSSP)
Other
Total Maintenance1
GRAND TOTALS (Sum Lines 1, 10, 16, 17)
Type of Expenditure
Indirect and/or Overhead
Construction & Right-of-Way
Total Construction1
Total Construction & Right-of-Way
Maintenance
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City of Tustin
M2 Expenditure Report
Fiscal Year Ended June 30, 2022
Local Fair Share Project List
Schedule 4
PROJECT NAME AMOUNT EXPENDED
Annex-Legacy Improvements 13,159.00$
Traffic Signal Controller Upgrade 6,334.50$
Main Street Improvements 23,140.00$
Edinger Ave/Irvine Center Traffic Signal Synchronization 1,518.75$
Tustin Ranch Road/Von Karmen Traffic Signal Synchronization 540.00$
Red Hill Avenue Signal Synchronization 32,610.00$
First Street Signal Synchronization 4,720.00$
Tustin Avenue Signal Synchronization 6,813.75$
FY 20/21 Major Pavement Maintenance 373,337.95$
FY 21/22 Major Pavement Maintenance 712,959.53$
N D South Non-BB Infrastructure 1,553,716.56$
Red Hill Avenue Median Improvements 442,002.50$
Bank Service Charges 1,061.04$
Direct Charge for Labor associated with these projects 162,368.00$
3,334,281.58$
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City of Tustin
M2 Expenditure Report
Fiscal Year Ended June 30, 2022
Signature Page
Jason Al-Imam
Date
________________________________________________
13 An Actual General Fund Revenue excerpt from a jurisdiction's Annual Comprehensive Finance Report (ACFR)
must be provided as backup documentation.
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;
☐ 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 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;
☐ 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 Tustin has expended in this fiscal year an amount of local discretionary funds for streets
and roads purposes at least equal to one of the maintenance of effort requirements below 10:
Director of Finance
Signature
A) The City/County met the existing FY 2021-22 MOE benchmark dollar amount.
B) The City/County met a proportional MOE benchmark amount of FY 2020-21 General Funds Revenues
that is at least equal to the percent listed in column C of Exhibit 2 in the M2 Eligibility Guidelines.13
X
X
X
X
X
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11/08/22
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Resolution No. 22-61
Pg. 1
RESOUTION NO. 22-61
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, 2022.
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___________________
Resolution No. 22-61
Pg. 2
PASSED, APPROVED, AND ADOPTED at a regular meeting of the City Council of the City of
Tustin, California, held on the 15th day of November, 2022.
_______________________
Austin Lumbard,
Mayor
ATTEST:
_____________________________________
ERICA N. YASUDA,
City Clerk
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________________
Resolution 22-61
Pg. 3
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. 22-61
was duly passed and adopted at a regular meeting of the Tustin City Council, held on
the 15th day of November, 2022, by the following vote:
COUNCILMEMBER AYES: ___________________________________
COUNCILMEMBER NOES: ___________________________________
COUNCILMEMBER ABSTAINED: ___________________________________
COUNCILMEMBER ABSENT: ___________________________________
________________________________
ERICA N. YASUDA
City Clerk
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