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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 �cFcoUNTY CP~\�o4r 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. City of Huntington Beach Page 1 of 2 Printed on 11/12/2025 powered by LegistarTM 378 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 City of Huntington Beach Page 2 of 2 Printed on 11/12/2025 powered by LegistarTM 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, ...► i iAl low,,,,, Resolution No. 2025-67, "A ‘Nt\ -1* I N T �,,....�� Q .�, Resolution of the City Council of •.•••c PORIT •'•. ''� the Cityof Huntington Beach .• \� c.0 •. . g •_ii: - ___ '•. <'�' 11 Concerning the Measure M2 �,,,, ,,, , ,r,� Expenditure Report for the City =�- _ _ /‘; t'' • . = of Huntington Beach" �` _ November 18, 2025 . .. , , , ,-,--.0•,7--.- - LA,,,,,„__)/),_,_„,,I . ......, t > ••• tF8 P� ;. •••c.51/4k%' g$ ,<• See.. / 7, 1 5%. ** \<<i ° 7 sesessibe i., AeS a J7UNTN 11 111W'."•r,111►I►/- 40 387 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). UIING70 1 • T 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. s i v" 389 St ! t 5..1. 4. l{ u. 1 1:-- : tc. c,„ I . ..,10..t.r.i, : , ., , ;.,...st., ,,,,o,.. ,,,,_ifs . ,.. f ' e ,. . ! } ... \,�� rx . 0 fil • e - `,•• t��1 it. tin Chi E O ■ 1 Ull) a) 1 M