TITLE:
title
RENEWED MEASURE M (M2) ELIGIBILITY
end
DEPARTMENT: PUBLIC WORKS DEPARTMENT /TRANSPORTATION SERVICES DIVISION
PRESENTED BY: RAJA SETHURAMAN, PUBLIC WORKS DIRECTOR
CONTACT INFORMATION: JENNIFER ROSALES, TRANSPORTATION SERVICES MANAGER, (714) 754-5343
RECOMMENDATION:
recommendation
Staff recommends the City Council:
1. Approve the City’s Maintenance of Effort (MOE) for Fiscal Year 2023-24 (Attachment 1).
2. Approve the M2 Seven-Year Capital Improvement Program (CIP) comprised of the City’s Five-Year and future year CIP for FY 2023-24 through FY 2029-30 (Attachment 2).
3. Adopt Resolution No. 2023-xx, for the Master Plan of Arterial Highways Conformance and Mitigation Fee Program (Attachment 3).
4. Adopt Resolution No. 2023-xx, for the Update of the Local Signal Synchronization Plan (Attachment 4).
5. Authorize staff to submit documents to meet M2 Eligibility requirements.
end
BACKGROUND:
In November 1990, the Orange County voters passed Measure M, the Revised Traffic Improvement and Growth Management Ordinance. The Ordinance provided for the establishment and implementation of a one-half percent retail transaction and use tax to fund transportation improvements for a period of 20 years. The County of Orange Board of Supervisors designated the Orange County Transportation Authority (OCTA) as the local transportation authority responsible for administering the revenue from Measure M that ended in 2011.
Renewed Measure M (M2) is a 30-year extension of the original program, approved by voters in 2006. Like its predecessor, Renewed Measure M net revenues are generated from the retail transaction and use tax of one-half percent. Net revenues contribute to two (2) types of Renewed Measure M funding: Fair Share and Competitive.
All Orange County cities are eligible for Fair Share funding, based on population, number of existing Master Plan of Arterial Highways centerline miles, and taxable sales. For FY 2023-24, Costa Mesa is estimated to receive approximately $3.7 million in Fair Share funds once OCTA eligibility requirements are met. Fulfilling these requirements will also allow the City to qualify for competitive funding allocations.
ANALYSIS:
Every year, the OCTA determines if a local jurisdiction is eligible to receive Renewed Measure M Fair Share funding. To qualify for funding through the OCTA, the City must submit the following eligibility requirements established for FY 2023-24, prior to the submittal deadline of June 30, 2023.
Maintenance of Effort (MOE) - The City is required to document and assure that it is maintaining a minimum level of funding for annual street and road expenditures from sources other than Renewed Measure M funds. This is to ensure that Renewed Measure M funds are used to supplement, and not replace or supplant, the existing general funds or other revenues used for street and road improvements. Failure to meet the MOE requirement may jeopardize the City’s eligibility and receipt of Fair Share funding while also triggering an additional audit in order to get back into compliance the subsequent year.
Seven-Year Capital Improvement Program (CIP) - Each jurisdiction is required to prepare an M2 Seven-Year CIP. The CIP is an extensive list of projects required by the General Plan, as well as projects needed to maintain a satisfactory driving surface. A project must also be on the Seven-Year CIP list in order for it to be eligible for Renewed Measure M competitive grant funds, or other types of State or Federal funds, should they become available. The M2 Seven-Year CIP is comprised of the City’s Five-Year and the future year CIP.
Resolution of Master Plan of Arterial Highways (MPAH) and Mitigation Fee Program OCTA requires jurisdictions to adopt a resolution attesting that no unilateral reduction in lanes has been made on any City arterials appearing on OCTA’s MPAH. The resolution also certifies that a mitigation fee program is in place. The City Council previously approved a resolution for Traffic Impact Fees, Resolution No. 2022-65, which satisfies this requirement.
Local Signal Synchronization Plan (LSSP) - The City is also required to approve andmaintain a Local Signal Synchronization Plan (LSSP) consistent with specific requirements. Each LSSP identifies traffic signal synchronization street routes, traffic signals, and how they may be synchronized with traffic signals on the street routes of adjoining jurisdictions. Each plan is to include a three-year scenario showing cost, available funding and phasing of capital, operations, and maintenance. In addition, an assessment of the signal synchronization efforts must be provided, as well as details on the review and revision (as necessary) of the timing of traffic signals along the identified traffic signal synchronization street routes. The City’s LSSP is included in Attachment 5.
Traffic Forums - The City is required to participate in Traffic Forums. City staff participated in various working group sessions hosted by the OCTA and met this requirement.
With the approval and submittal of the above-listed documents to the OCTA, the City meets the eligibility requirements for Measure M2 Fairshare funding, estimated at approximately $3.7 million, from the County’s Renewed Measure M one-half percent sales tax initiative for Fiscal Year 2023-24. Elimination of any projects from the M2 Seven-Year CIP may jeopardize possible future grant funding for that particular project, should grant funding become available. Staff requests City Council approval of the recommended actions.
ALTERNATIVES:
The City Council may elect to not approve or modify the submittals. This may result in the City not complying with the eligibility requirements and the potential risk of losing Measure M2 grant funding. Failure to meet such requirements may also result in an additional audit to bring the City back into compliance the subsequent year.
FISCAL REVIEW:
The Finance Department has reviewed and signed the Maintenance of Effort (MOE) form certifying that the City has budgeted and will meet the MOE minimum level of funding requirements for FY 2023-24.
LEGAL REVIEW:
The City Attorney’s Office has reviewed this agenda report and the resolutions for the Master Plan of Arterial Highways Conformance and Mitigation Fee Program and for the Update of the Local Signal Synchronization Plan and approves them as to form.
CITY COUNCIL GOALS AND PRIORITIES:
This item supports the following City Council Goals:
• Achieve Long-Term Fiscal Sustainability
• Strengthen the Public’s Safety and Improve the Quality of Life
CONCLUSION:
The City of Costa Mesa, like other Orange County cities, is required to annually adopt and/or approve certain items in order to remain eligible for grant funds from the Renewed Measure M program. Accordingly, staff recommends the City Council approve the proposed Maintenance of Effort (MOE), approve the M2 Seven-Year Capital Improvement Program (CIP) consisting of the City’s Five-Year CIP and future year CIP, adopt the resolution for the Master Plan of Arterial Highways Conformance and Mitigation Fee Program, adopt the resolution for the Update of the Local Signal Synchronization Plan and authorize staff to submit documents to meet M2 Eligibility requirements.