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Agenda Item 28.

City Council Meeting

Meeting Date:	06/19/2018
FROM:	Bill Gallardo

Subject:

Renewed Measure M (M2) Eligibility Submittal Package For FY 2018-19

RECOMMENDATION

Adopt resolution authorizing submittal of Renewed Measure M Eligibility package to Orange County Transportation Authority (OCTA).

BACKGROUND/DISCUSSION

Measure M was a local Orange County tax initiative that levied a half-cent sales tax for the purpose of financing transportation improvements throughout the County. Since Measure M was implemented in 1991, the City of Brea has benefited in improving its residential and arterial streets from this transportation funding program. Collection of the half-cent sales tax and the Measure M program officially ended on March 31, 2011.

On November 7, 2006, voters approved Renewed Measure M (M2). M2 is a 30-year, multi-billion dollar program extension of the original Measure M with a new slate of projects and programs planned. These include improvements to the Orange County freeway system, streets and road network throughout the County, expansion of the Metrolink system, more transit services for seniors and the disabled, as well as funding for the cleanup of roadway storm water runoff.

M2 net revenues are generated from the transactions and use tax plus any interest or other earnings after allowable deductions. Net revenues may be allocated to local jurisdictions for a variety of programs as identified in OCTA’s Renewed Measure M Transportation Ordinance and Investment Plan (Ordinance No. 3 dated July 24, 2006). Compliance with the eligibility requirements identified in the Ordinance must be established and maintained in order for local jurisdictions to receive the net revenues.

As with the original Measure M, each year the City must provide specific documentation to OCTA in order to maintain M2 eligibility for local fair share and competitive grant funding. OCTA is the Local Transportation Authority (LTA) responsible for administering the proceeds of the M2 sales tax in Orange County. 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. Recently, the City was awarded over $12 M in grant funds from the competitive CTFP FY 2018-19 program for the SR 57/Lambert Road Interchange Improvement Project, CIP 7251. Also, the City received over $900,000 of fair share funds in FY 2017-18.

This year’s eligibility package includes the following attachments:

Resolution for Measure M2 Eligibility Submittal.
Measure M2 Eligibility Checklist for Fiscal Year 2016-17.
A copy of the Seven Year Capital Improvement Program (CIP) Budget beginning with Fiscal Year 2018-19 as it relates to Measure M2 funding. The CIP is presented in the required OCTA format.
Documentation pertaining to Brea’s Maintenance of Effort (MOE).
Land Use Planning Strategies letter.

These items demonstrate to OCTA that Brea will fulfill its responsibility to implement the requirements of M2. Moreover, this eligibility package will help to ensure that Brea continues to receive the funding necessary to complete needed transportation improvement projects.

FISCAL IMPACT/SUMMARY

Fulfillment of the eligibility requirements for FY 2018-19 will confirm the City’s ability to continue receiving M2 funds. In addition, the City’s annual M2 local jurisdiction apportionment, more commonly referred to as “Fair Share” is estimated at $991,105 for Fiscal Year 2018-19. This action has no fiscal 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

Attachments
Resolution
OCTA Format CIP
OCTA Checklist
M.O.E. Certification
Strategies Letter