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Agenda Item 10.

City Council Meeting

Meeting Date:	12/19/2017
FROM:	Bill Gallardo

Subject:

Resolution Concerning Measure M2 Expenditure Report

RECOMMENDATION

Adopt Resolution

BACKGROUND/DISCUSSION

On November 7, 2006, voters approved Renewed Measure M, which is commonly referred to as M2. M2 is a 30 year program extension of the original Measure M (1991-2011) to fund countywide transportation facility and service improvements by a transactions and use tax of one-half of one percent (1/2%). M2 requires that each jurisdiction adopt an Annual Expenditure Report to account for funds expended that satisfy the Measure M Maintenance of Effort (MOE) requirement and expenditures of all activities funded with M2 revenues within six (6) months of the jurisdiction’s fiscal year end. By adopting this Resolution concerning the Measure M2 Expenditure Report, the City will be in compliance with this requirement.

As with the original Measure M, each year the City must provide specific documentation to the Orange County Transportation Authority (OCTA) in order to maintain Measure M2 eligibility for local fair share and competitive grant funding. OCTA is the local transportation authority responsible for administering proceeds of the M2 sales tax. The City of Brea routinely applies for competitive funding through the Comprehensive Transportation Funding Program (CTFP), which is a component of M2. The CTFP brings a number of competitive grant programs through M2 under one set of procedures and guidelines. M2 funds enable the City to undertake significant capital projects that improve the transportation and circulation system in Brea.

In June 2017, the City submitted all documentation for the annual M2 eligibility requirements, with the exception of this Measure M2 Expenditure Report. It was necessary for staff to wait until after the City’s audits were completed in order to prepare the report based on audited financial data. This new M2 requirement will continue on an annual basis as per OCTA ordinance.

COMMISSION/COMMITTEE RECOMMENDATION

The Finance Committee reviewed staff’s recommendation at their December 12, 2017 meeting and recommended to proceed.

FISCAL IMPACT/SUMMARY

Continued compliance with the M2 MOE requirement will enable the City of Brea to be eligible for local fair share and competitive grant funding. There is no impact to the General Fund.

RESPECTFULLY SUBMITTED:

William Gallardo, City Manager
Prepared by: Warren Coleman, Senior Management Analyst
Concurrence: Steve Kooyman, P.E., City Engineer and Tony Olmos, P.E., Public Works Director

Attachments
Resolution 2017-071