Agenda Report
Fullerton City Council
MEETING DATE: AUGUST 18, 2026
TO: CITY COUNCIL / SUCCESSOR AGENCY
SUBMITTED BY: STEPHEN BISE, DIRECTOR OF PUBLIC WORKS
PREPARED BY: JEROME JOAQUIN, PUBLIC WORKS ADMIN MANAGER
MEME TRINH, ADMINISTRATIVE ANALYST II
SUBJECT: $126,121.34 Funding reconciliation with OCTA tO apply for future OCTA grant APPLICATION
SUMMARY
Authorize reconciliating $126,121.34 previously expended to Orange County Transportation Authority (OCTA) to facilitate a new grant application for the CIP Project 45670 - Bastanchury Road Widening and Restriping Project (Harbor Boulevard to Fairway Isles Drive).
PROPOSED MOTION
Approve $126,121.34 Infrastructure funds (Fund 11) reconciliation and disbursement to OCTA for prior grant-funded engineering costs and become eligible for new OCTA grant application.
ALTERNATIVE OPTIONS
Approve the Proposed Motion
Reject recommendation
Other options brought by City Council.
STAFF RECOMMENDATION
Staff recommends the Proposed Motion.
CITY MANAGER REMARKS
None.
PRIORITY POLICY STATEMENT
This item matches the following Priority Policy Statements:
Infrastructure and City Assets.
FISCAL IMPACT
The City would return $126,124.34 previous OCTA grant funds received during the CIP Project 45670 - Bastanchury Road Widening and Restriping Project (Harbor Boulevard to Fairway Isles Drive) engineering phase. Reconciling these funds with OCTA would allow the City to submit an updated application to restart the improvement project as part of the OCTA FY 2027‑28 Regional Capacity Program under the Arterial Capacity Enhancement (ACE) category.
The City intends to request approximately $2.7 million in ACE funds to support the primary engineering implementation of the proposed project. The City would reimburse with Infrastructure Funds (Fund 11) from project savings from other Infrastructure funded CIP projects to avoid misapplying other funding sources such as Measure M2 or Gas Tax and to prevent triggering additional reporting or audit requirements.
DISCUSSION
The Bastanchury Road Widening and Restriping Project design commenced in 2004 to expand Bastanchury Road to three lanes in each direction from Harbor Boulevard to Fairway Isles Drive. The proposed improvements are located within US Army Corp of Engineers right of way and include a new median island, drainage enhancements, retaining walls, landscaping and irrigation, water line relocations and streetlight relocations. The project first began in 2004 with KFM Engineering performing engineering and environmental analyses. The City completed early portions of the project but cancelled the project in 2006 due to escalating construction costs and funding concerns.
The City received funding through the OCTA Regional Capacity Program in 2011 with the project divided into three phases: Engineering, Right-of-Way (ROW) and Construction.
The City completed the Engineering and ROW Phases and received OCTA reimbursement totaling $126,121.34 for Engineering and $250,179.10 for ROW Phase.
However, the U.S. Army Corps of Engineers (USACE) required several construction plan revisions, including relocating USACE’s borrow site which triggered additional review by the Department of Fish and Game and the Regional Water Quality Control Board. The City could not meet the required Arterial Capacity Enhancements (ACE) June 2016 deadline for construction contract award .
The City re-applied to OCTA to resume the project in November 2025. The City OCTA Regional Capacity Program application requests approximately $2.7M in ACE Funds to solely support the engineering phase. As a result, OCTA only requires the City to return previously reimbursed Engineering funds before it considers new funding for the same project. The amount reimbursed for the Engineering phase totals $126,121.34.
The City application does not request funding for ROW at this time. If the City seeks additional funding for this phase in the future, OCTA would review the necessary actions to proceed with the application. The City cancelled the initial Construction Award in 2016 and did not expend funds, therefore requiring no funding reconciliation. Staff would apply for future OCTA Call for Projects for the project Construction Phase.
Staff recommends returning $126,121.34 to OCTA to meet eligibility requirements for new funding and continue the Bastanchury Road Widening and Restriping Project.
Attachments:
Attachment 1 – 2026 Funding Cancellation Request
cc: City Manager Eddie Manfro
Bastanchury Road Improvement Project Fund Reconciliation August 18, 2026 - Page 2