HomeMy WebLinkAboutAdopt Resolution No. 2025-67 Concerning the Measure M2 Expen ��NTINGjo 2000 Main Street,
of ti Huntington Beach,CA
Fp= City of Huntington Beach 92648
�9z1, APPROVED 7-0
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File #: 25-847 MEETING DATE: 11/18/2025
REQUEST FOR CITY COUNCIL ACTION
SUBMITTED TO: Honorable Mayor and City Council Members
SUBMITTED BY: Travis Hopkins, City Manager'
VIA: Chau Vu,.Director of Public Works
PREPARED BY: Ana Tenorio, Principal Management Analyst
Subject:
Adopt Resolution No: 2025-67 concerning the Measure M2 Expenditure Report for the City of
Huntington Beach
Statement of Issue:
In compliance with Renewed Measure M2 funding eligibility, the City is required to adopt a Resolution
approving the annual Measure M2 Expenditure Report and submit the report and Resolution to the
Orange County Transportation Authority (OCTA).
Financial Impact:
No additional funding is required for the resolution.
Recommended Action:
Adopt Resolution No. 2025-67, "A Resolution of the City Council of the City of Huntington Beach
Concerning the Measure M2 Expenditure Report for the City of Huntington Beach."
Alternative Action(s):
Do not adopt the Resolution and forego Measure M2 funding eligibility. This action would result in the
loss of potential grant funding for street improvements.
Analysis:
Renewed Measure M2 is the one-half cent sales tax approved by Orange County voters in November
2006 for countywide transportation improvements. The multi-billion dollar program, which is
administered by OCTA, extends the original Measure M (1991-2011) program for another 30 years.
All Orange County eligible jurisdictions receive a percentage of the sales tax revenue based on
population, Master Plan of Arterial Highways centerline miles, and share of countywide taxable sales.
These funds can be used for local projects, as well as ongoing maintenance of local streets.
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File #: 25-847 MEETING DATE: 11/18/2025
There are no competitive criteria to meet, but there are administrative requirements to maintain
eligibility to receive funding. Although the City is ineligible to receive these funds currently, these
requirements must still be met in order for the withheld funds to be placed in an escrow account and
be released upon reestablishment of eligibility. A key requirement is to adopt the Measure M2
Expenditure Report each year within six-months of the end of the local jurisdiction's fiscal year and
submit a Resolution of adoption and final report to OCTA. The City of Huntington Beach is required to
comply with M2 Maintenance of Effort (MOE) reporting requirements. To ensure compliance with
OCTA's M2 reporting requirements, City staff reviewed and reconciled the City's M2 expenditures for
FY 2024-25 and verified that the M2 expenditures are eligible. The City of Huntington Beach Measure
M2 Report for FY 2024-25 complies with this requirement. The report accounts for all M2 revenues,
developer/traffic impact fees and funds expended by the City towards street improvements,
rehabilitation, and maintenance.
Environmental Status:
Pursuant to CEQA Guidelines Section 15378(b)(5), administrative activities of governments that will
not result in direct or indirect physical changes in the environment do not constitute a project.
Strategic Plan Goal:
Non Applicable - Administrative Item
For details, visit www.huntingtonbeachca.gov/strategicplan.
Attachment(s):
1. Resolution No. 2025-67, "A Resolution of the City Council of the City of Huntington Beach
Concerning the Measure M2 Expenditure Report for the City of Huntington Beach"
2. Fiscal Year 2024-25 M2 Expenditure Report
3. PowerPoint Presentation
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379
RESOLUTION NO. 2025-67
A RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF HUNTINGTON BEACH CONCERNING
THE MEASURE M2 EXPENDITURE REPORT
FOR THE CITY OF HUNTINGTON BEACH
WHEREAS, local jurisdictions are required to meet eligibility requirements and submit
eligibility verification packages to Orange County Transportation Authority (OCTA) in order to
remain eligible to receive M2 funds.
Local jurisdictions are required to adopt an annual M2 Expenditure Report as part of one
of the eligibility requirements.
Local jurisdictions are required to account for Net Revenues, developer/traffic impact
fees, and funds expanded by local jurisdiction in the M2 Expenditure Report that satisfy the
Maintenance of Effort requirements; and
The M2 Expenditure Report shall include all Net Revenue fund balances, interest earned
and expenditures identified by type and program or project; and
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 of the City of
Huntington Beach 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 included 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 Huntington Beach.
c) The City of Huntington Beach Finance Director is hereby authorized to sign and
submit the M2 Expenditure Report to OCTA for the fiscal year ending June 30, 2025.
25-17247/392587 1
Resolution No. 2025-67
PASSED AND ADOPTED by the City Council of the City of Huntington Beach at a
regular meeting thereof held on the 18th day of November , 2025.
Mayor
REVIEWED AND APPROVED: APPROVED AS TO FORM:
Manager / ,. City Attorney
INITIATED AND APPROVED:
Director of Public Works
22-12065/294662 2
City of Huntington Beach Schedule 1
M2 Expenditure Report
Fiscal Year Ended June 30, 2025
Beginning and Ending Balances
Description Line Amount Interest
No.
Balances at Beginning of Fiscal Year
A-M Freeway Projects 1 $ - $ -
O Regional Capacity Program(RCP) 2 $ (89,351.00) $ 147.00
P :Regional Traffic Signal Synchronization Program (RTSSP) 3 $ (351,343.95) $ -
_�• Local fair Share 4 5,115,802 60 - .,...w,.,
R 'High Frequency Metrolink Service 5 $ - $
S Transit Extensions to Metrolink 6 $ - $ -
T Convert Metrolink Station(s)to Regional Gateways that 7 $ $ -
1connect Orange County with High-Speed Rail Systems _
U 'Senior Mobility Program or Senior Non-Emergency Medical 8 $ 217,517.56 $ -
Program ..__ -., ,-,,.,... . ._ - ,,. - -. -. ...
V 'Community Based Transit/Circulators 9 $ (132,577.45) $ -
W !Safe Transit Stops 10_ $ - '$ -
X 'Environmental Cleanup Program(Water Quality) 11 $ (169,473.00) $ 847.00
'Other* 12 $ 119,466.49 $ -
Balances at Beginning of Fiscal Year 13 $ 4,710;041.25 $ 994.00
Monies Made Available During Fiscal Year 14 $ 4,642,571.04 $ 174,788.00
Total Monies Available(Sum Lines 13&14) 15 $ 9,352,612.29 $ 175,782.00
Expenditures During Fiscal Year 16 $ 11,414,199.04 $ 174,788.00
Balances at End of Fiscal Year
A-M:Freeway Projects 17 $ - $
O Regional Capacity Program(RCP) 18 $ (89,351.00) $ 147.00
- P !Regional Traffic_Signal Synchronization Program_(RTSSP) 19 $ 49,967.73 $ -
Q 1Local Fair Share 20 $ 4,671,938.59 $ -
R Hi h Fregyency Metrolink Service 21 $ -m - $ _
S !Transit Extensions to Metrolink 22 $ - $ -
T Convert Metrolink Station(s)to Regional Gateways that 23 $ - $ -
;connect Orange County with High-Speed Rail Systems
'Senior Mobility Program or Senior Non-Emergency Medical
U 24 $ 128,970.82 $ -
'Program
✓ 'Community Based Transit/Circulators 25 $ 10,616.00 $ -
W 'Safe Transit Stops ,mm..,..M 26
• ;Environmental Cleanu Pro ram Water Quality) 27 $ 324,580 53 $ 847.00
'Other* 28 $ (7,158,309.42) $ -
* Please provide a specific description
*The revenues for Other expenditures include developer/traffic impact fees(Fund 206),Gas Tax(Fund 207), and
Traffic Congestion Relief Prop 42 (Fund 219) .
382
� City of Huntington Beach M2 Expenditure Report Schedule
Fiscal Year Ended June 30, 2025
Sources and Uses
�
� Description LineAmount Interest
No.
Revenues:
y,N1 Freeway Projects 1 $ $
0 Regional Capacity Program(R[P) Z $ ' $
P Regional Traffic Si8na|SynchronizatiunProQram(RTS3P) 3 $ 496,834.68 $ -
Ci Local Fair Share 4 $ 3'073'972.77 $ 169,260.00
R High Frequency W1etro|inhService S__' $ - $ —
8 Transit Extensions to Metrolink G $ S -
Convert K8etno|inkStaton(�tu Regional Gateways that onnn�t
T 7 $ - $ -
Orange County with High-Speed Rail Systems
U Senior Mobility Program or Senior Non-Emergency Medical Program 8 $ 217,813.88 $ 5.528.00
V Community Based Transit/Circulators 9 $ 350,896.18 $ '
VV Safe Transit Stops 10 $ - $ -
X Environmental Cleanup Program(Water Quality) 11 $ 494'053.53 $ -
Other* 12 $ ' $
TOTAL REVENUES(Sum lines 1tm12) 13 $ 4,642'57I.04 $ 174,788.00
Expenditures: '
A-K0 Freeway Projects 14 - $ -
0 Regional Capacity Program(RCP) 15 '---------�� $ -
P Regional Traffic Signal Synchronization Program(RTS5P) 16 $ 95'52100 $ -
Q Local Fair Share . 17 $ 3'517'836.70 $ 169,260.00
R High Frequency yWstroUnkService 18 $ ' $ '
S Transit Extensions toK4e1ro|ink 19 $ - $ -
Convert K8etro|inkStation(s)to Regional Gatevxaysthat connect T ZU $ ' $ -
Orange County with High-Speed Rail Systems
W Senior Mobility Program or Senior Non-Emergency Medical Program 21 $ 306.360.62 $ 5,528.00
V Community Based Transit/Circulators 22 $ 216'702.73 $ -
nV Safe Transit Stops 23 $ - $ -
X Environmental Cleanup Program(Water Quality) 24 $ $ -
Other* 25 $ 7'277'775.91 $ '
TOTAL EXPENDITURES(Sum lines 14to25) ' ZG $ 11'414'199.04 $ 174'788D0
TOTAL BALANCE(Subtract line 26 from 13) 27 $ (6'771'628.00) $
~Please provide a specific description
•The revenues for Other expenditures include develop er/t raffi c impact fees(Fund 206),Gas Tax(Fund 207),and
Traffic Congestion Relief Prop 42(Fund 2z9).
City of Huntington Beach Schedule 3
M2 Expenditure Report
Fiscal Year Ended June 30,2025
Streets and Roads Detailed Use of Funds
Line Developer/ 0 p Q X Other
Other
Type of Expenditure MOE O p Q X e MZ Other" TOTAL
No. Impact Fees` Interest Interest Intareat Interest M2 -
Interest
Indirect and/or Overhead 1 $ - $ - $ - $ - $ - - $ - $ - $ - $ - $ - $ - $
Construction&Right-of-Way
New Street Construction 2 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -
Street Reconstruction 3a $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 673,226.28 $ 673,226.28
Street Reconstruction-Pavement 36 $ 676,429.95 $1,679,118.75 .$ - $ - $ - $ - $ 2,419,186.74 $ 169,260.00 $ - $ - $ - $ - $ - $ 4,943,995.44
Signals,Safety Devices,'&Street Lights 4 $ - $ - $ - $ - $ 95,523.00 $ - $ - $ $ - $ - $ - $ - $ 1,679,118.75 $ 1,774,641.75
...Pedestrian Ways&Bikepaths 5 $ 65,000.00 $ - $ - $ - 5___._.__._...- $ -$.._»_112,335.20 $ - $._._._.._..Y_$_..._.._.- $..._......_._...........$___..._.._.,....._.5___.._..__........_.._..$,,.,,,._..177,335.20
Storm Drains 6 $ - $ - $ - $ - $ - $ - $ - $ -. $ - $ - $ - $ - $ - $ -
Storm Damage 7a $ 36,014.64 $ - $ - $ $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 36,014.64
Storm Damage Pavement 7b $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ $ -
Total Construction'(Sum Unes 2 to Oh) 8 $ 777,444.59 $1,679,118.75 $ - $ - $ 95,523.00 $ - $ 2,531,521.94 $ 169,260.00 $ - $ - $ - $ - $ 2,352,345.03 $ 7,605,213.31
Right of Way Acquisition 9 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -
Total Construction&Right-of-Way(Sum Lines 88,9) 10 $ 777,444.59 $1,679,118.75 $ - $ - $ 95,523.00 $ - $ 2,531,521.94 $ 169,260.00 $ - $ - $ - $ - $ 2,352,345.03 $ 7,605,213.31
Maintenance
Patching 11 $ 233,065.44 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 233,065.44
Overlay&Sealing 12 $ 3,746,177.17 $ - $ - $ - $ - $ - $ 48,015.44 $ - $ - $ - $ - $ - $ 4,399,207.71 $ 8,193,400.32
Street Lights&Traffic Signals 13 $ 1,438,860.45 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 512,247.55 $ 1,951,108.00
Storm Damage 14 $ - $ - -$ - $ - $ - $ - $ - $ - $ - $ - $ --$ - $ - $ -
Other Street Purpose Maintenance 15a $ 1,594,031.99 $- - $ - $ - $ - $ - $ 896,520.27 $ - $ - $ - $ - $ - $ 13,975.62 $ 2,504,527.88
_Other Street Purpose Maintenance-Pavement 15b $ $ $ $ $ - $ - $ 41,779 13 $ - $ $ - $ - $ - $ - $ 41,779 13
Total Maintenance'(Sum Lines 11 to 156) 16 $ 7,012,135.05 $ - $ - $ - 5 - $ - $ 986,314.84 $ - $ - $ - $ - $ - $ 4,925,430.88 $ 12,923,880.77
Other 17 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 523,063.35 $ 5,528.00 $ - $ 528,591.35
,
GRAND TOTALS(Sum Lines 1,10,16,17) 18 $ 7,789,579.64 $1,679,118.75 $ - $ - $ 95,523.00 $ - $ 3,517,836,78 $ 169,260.00 $ - $ - $ 523,063.35 $ 5,528.00 $ 7,277,775.91 $ 21,057,685.43
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".The revenues for Other
expenditures include developer/traffic impact fees(Fund 206),Gas Tax(Fund 207),and Traffic Congestion Relief Prop 42(Fund 219).
Finance Director Confirmation 19 I have reviewed and am aware of these guidelines and their applicability in calculating and reporting on Maintenance of Effort expenditures.
Finance Director initial
t Includes direct charges for staff time Legend
'Other M2 includes A-M,R,S,T,U,V,and W Project Description
`Transportation related only A-M Freeway Projects
"Please provide a specific description 0 Regional Capacity Program(RCP)
P Regional Traffic Signal Synchronization Program(RTSSP)
Q Local Fair Share
R High Frequency Metrolink Service
S Transit Extensions to Metrolink
T Convert Metrolink Statlon(s)to Regional Gateways that connect Orange County with High-
Speed Rail Systems
U Senior Mobility Program or Senior Non-Emergency Medical Program
✓ Community Based Transit/Circulators
W Safe Transit Stops
X Environmental Cleanup Program(Water Quality)
384
City of Huntington Beach Schedule 4
M2 Expenditure Report
Fiscal Year Ended June 30,2025
Local Fair Share Project List
PROJECT NAME TYPE OF EXPENDITURE AMOUNT INTEREST
for Public Works Other Street Purpose Maintenance $938,299
(Street Maintenance b t $Genera _ _.._.......:,.»..:..», rP
Residential Pavement Maintenance-Overlay&Sealing $48,015
Arterial Rehabilitation 22-23 CON-Street Reconstruction-Pavement $33,288
Arterial Rehabilitation 23-24 CON-Street Reconstruction-Pavement $30,400
Admiralty Bridge Rehab CON-Street Reconstruction-Pavement $ 247,315.00
Zone 1 Overlay Maintenance-Overlay&Sealing $ 4,042.20
Residential Zone Maint 24-25 CON Street Reconstruction-Pavement $ 2,075,173.33 $ 169,260.00
Arterial Rehab 24-25 CON-Street Reconstruction-Pavement :$ 33,009.92
Residential Curb Ramp 24-25 ».M CON-Pedestrian Ways&Bikepaths $ 108,293.00
•
TOTAL PROJECT Q EXPENDED I $ 3,517,836.78 $ 169,260.00
GRAND TOTAL PROJECT Q EXPENDED $ 3,687,096.78
385
City of Huntington Beach Signature Page
M2 Expenditure Report
Fiscal Year Ended June 30, 2025
I hereby certify that:
gAlI the information attached herein and included in schedules 1 through 4 is true and accurate to the best of
my knowledge;
El 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;
LThe City of Huntington Beach 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;
C'The City'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
EiThe City of Huntington Beach has expended in this fiscal year an amount of local discretionary funds for
streets and roads purposes at least equal to or exceeding the FY 2024-25 MOE benchmark dollar amount 11
Robert Torrez 11
-
Director of Finance (Print Name) Date
Signature
" Jurisdictions are encouraged to submit MOE eligible expenditures higher than their MOE benchmark, so that
should certain expenses be ruled ineligible during an MOE audit, the local jurisdiction still has sufficient MOE
expenditures to demonstrate continued achievement of the MOE benchmark.
386
Res. No. 2025-67
STATE OF CALIFORNIA
COUNTY OF ORANGE ) ss:
CITY OF HUNTINGTON BEACH )
I, LISA LANE BARNES, the duly elected, qualified City Clerk of the
City of Huntington Beach, and ex-officio Clerk of the City Council of said City, do
hereby certify that the whole number of members of the City Council of the City of
Huntington Beach is seven; that the foregoing resolution was passed and adopted
by the affirmative vote of at least a majority of all the members of said City Council
at a Regular meeting thereof held on November 18, 2025 by the following vote:
AYES: Twining, Kennedy, McKeon, Burns, Van Der Mark, Gruel, Williams
NOES: None
ABSENT: None
ABSTAIN: None
1/d:1411€41e, Kt
Ci y Clerk and ex-officio Clerk of the
City Council of the City of
Huntington Beach, California
,//'/Ar.or, ...►
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iAl low,,,,, Resolution No. 2025-67, "A
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•_ii: - ___ '•. <'�' 11 Concerning the Measure M2
�,,,, ,,, , ,r,� Expenditure Report for the City
=�- _ _ /‘; t'' • . = of Huntington Beach"
�` _ November 18, 2025
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BACKGROUND
In compliance with Renewed Measure M2 funding
requirements, the City is required to adopt a resolution
approving the annual Measure M2 Expenditure Report and
submit the report and resolution to the Orange County
Transportation Authority (OCTA).
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61073TI' GPI,
388
NEED/WHY/ BENEFITS
During fiscal year 2024-25 Measure M2 funding provided for
approximately $3. IM towards construction , reconstruction ,
and maintenance of streets, signals , street lights, pedestrian
ways, bike paths, storm drains, and other street maintenance
purposes.
The City is required to report on all expenditures
� .r NCDRPORAtFO
relating to these efforts each fiscal year. 146.4400.16.
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