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Agenda Item 23.

City Council Meeting

Meeting Date:	12/04/2018
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 M2 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 2018, the City successfully submitted all documentation for the annual M2 eligibility requirements, with the exception of this Measure M2 Expenditure Report. The year end expenditure report is required to be submitted by December 31, 2018. The report summarizes all Measure M2 expenditures for the prior fiscal year. A copy of the report is attached to the resolution. By adopting this resolution, it will allow the City to continue receiving OCTA Measure M funds.

FISCAL IMPACT/SUMMARY

The City received $953,211 of Local Fair Share funding during Fiscal Year 2017-18. There is no impact to the General Fund.

RESPECTFULLY SUBMITTED:

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

Attachments
M2 Report
Resolution