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:
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Adopt Resolution No. 2025-67 concerning the Measure M2 Expenditure Report for the City of Huntington Beach
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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:
recommendation
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.”
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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.
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