Item 199/2025
Final
City of Garden Grove
INTER-DEPARTMENT MEMORANDUM
To:
Lisa L. Kim From: William E. Murray
Dept:
City Manager Dept: Public Works
Date: 6/10/2025
Subject: Approval of Fiscal Year 2025 -26 Measure M2 Seven -Year Capital Improvement Plan; and Adoption of a Resolution affirming the conformance of the City’s Circulation Element with the Orange County Transportation Authority’s Master Plan of Arterial Highways, and affirming that the City’s Mitigation Fee Program is in effect. (Action Item)
OBJECTIVE
For City Council to approve the F iscal Year 2025-26 Measure M2 (M2) Seven -Year Capital Improvement Plan (7-YR CIP), and to adopt a Resolution affirming conformance of the City’s Arterial Section of the Circulation Element with the Orange County Transportation Authority’s (OCTA) Master Plan of Arterial Highways (MPAH), and the City’s Mitigation Fee Program.
BACKGROUND
Every year, Orange County local agencies are required to submit approved documentation and resolutions to OCTA to maintain M2 eligibility for Local Fair Share appropriations and competitive grant funding. This year, there are three components to this annual review. These include: (1) the adoption of a 7 -YR CIP, (2) affirmation that the City’s Circulation Element conforms with OCTA’s MPAH, and (3) affirmation that the City’s Mitigation Fee Program is in effect.
DISCUSSION
The following is a brief summary of the three requirements mentioned above.
1. Seven-Year Capital Improvement Plan – Per OCTA’s eligibility requirements, the City must develop a 7-YR CIP, including all transportation capital projects scheduled to use M2 revenues. All construction costs and f unding sources must also be identified. The City, however, is not obligated to deliver any identified projects. If any changes are made, City Council has to amend the 7-YR CIP accordingly.
2. Conformance with the Master Plan of Arterial Highways – the MPAH s erves as a countywide planning tool to coordinate the county’s arterial highway network. The City Item 199/2025
is required to preserve a minimum number of through lanes on the City’s arterial network, as it is identified on the General Plan’s Circulation Element.
3. Concurrence with the Mitigation Fee Program – Biennially, City Council is required to adopt a resolution reaffirming that the City’s Mitigation Fee Program is in effect. This program is based on a nexus study, linking development activity to infrastructure impacts and their related costs, resulting in the establishment of a fee schedule.
FINANCIAL IMPACT
There is no impact to the General Fund. The City is projecting to receive $3.5 million in Measure M2 revenues in Fiscal Year 2025-26.
RECOMMENDATION
It is recommended that the City Council:
Approve the Fiscal Year 2025-26 Measure M2 Seven-Year Capital Improvement Plan; and
Adopt a Resolution affirming conformance of the City’s Circulation Element with OCTA’s Master Plan of Arterial Highways, and affirming that the City’s Mitigation Fee Program is in effect.
By: Alexa Viramontes, Sr. Administrative Analyst
ATTACHMENT(S)
1. Measure M2 7-Year CIP Project List
2. Measure M2 Project List and MPAH Resolution