STAFF REPORT
Meeting Date:
June 23, 2026
CONSENT
14 SUBJECT: APPROVAL OF 7-YEAR CAPITAL IMPROVEMENT PROGRAM FOR TRANSIT
RELATED EXPENDITURES AND RESOLUTION CONFIRMING PAVEMENT
MANAGEMENT PLAN AND RESOLUTION CONFIRMING LOCAL SIGNAL
SYNCHRONIZATION MASTER PLAN FOR MEASURE M (M2) FUNDING
ELIGIBILITY
RECOMMENDATION: It is recommended that the City Council:
1. Approve the attached 7-Year Capital Improvement Program for transportation and transit improvement projects required for Measure M eligibility;
2. Adopt the Resolution titled, “A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
LAGUNA BEACH, CALIFORNIA, CONCERNING THE STATUS AND UPDATE OF THE PAVEMENT MANAGEMENT PLAN FOR THE MEASURE M (M2) PROGRAM FOR THE CITY OF LAGUNA BEACH”;
3. Adopt the Resolution titled, “A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
LAGUNA BEACH, CALIFORNIA, CONCERNING THE UPDATE OF THE LOCAL SIGNAL SYNCHRONIZATION PLAN FOR THE MEASURE M (M2) PROGRAM”; and
4. Authorize the Director of Public Works to forward all eligibility requirements including the approved 7-Year Capital Improvement Program to the Orange County Transportation Authority (OCTA).
SUMMARY OF THE MATTER
This report recommends that the City Council take the actions necessary to maintain the City of Laguna Beach’s eligibility for Measure M2 transportation funding administered by the Orange County Transportation Authority (OCTA). Specifically, the recommended actions include approving the City’s updated 7-Year Capital Improvement Plan (CIP) for transportation-related projects, affirming consistency with the County’s Master Plan of Arterial Highways through adoption of the Pavement Management Plan (PMP) resolution, and affirming consistency with the Regional Traffic Signal Synchronization Master Plan through adoption of the Local Signal Synchronization Plan (LSSP) resolution.
Measure M2 provides both formula-based and competitive transportation funding opportunities for local agencies. For Fiscal Year 2026-27, the City is expected to receive approximately $615,000 in Measure M2 Fair Share funding for eligible street maintenance and transportation improvements. Approval of the attached plans and resolutions will satisfy OCTA’s eligibility requirements, allowing the City to continue receiving Measure M2 funding and pursue future transportation investments that improve roadway conditions, mobility, traffic operations, pedestrian safety, and regional connectivity.
DISCUSSION
The Measure M program provides funding for transportation improvements through 2041 generated by a countywide one-half cent retail sales tax. Eighteen percent of Measure M funds are distributed to local APPROVAL OF 7-YEAR CAPITAL IMPROVEMENT PROGRAM FOR TRANSIT RELATED
EXPENDITURES AND RESOLUTION CONFIRMING PAVEMENT MANAGEMENT PLAN
AND RESOLUTION CONFIRMING LOCAL SIGNAL SYNCHRONIZATION MASTER PLAN FOR MEASURE M (M2) FUNDING ELIGIBILITY
June 23, 2026
agencies on a "Fair Share" basis, based on a formula using population, miles of existing arterial highways within each jurisdiction, and taxable sales. For Fiscal Year 2026-27, the City of Laguna Beach will receive approximately $615,000 for street repairs and maintenance under this program. Funds are also distributed for transportation programs on a competitive basis. Staff recommends that the City Council approve the attached 7-Year CIP for transportation and transit improvement projects, which is consistent with the proposed 7-Year CIP presented to the City Council at the May 12, 2026 Budget Workshop, and adopt the attached resolutions concerning the City's Master Plan of Arterial Highways Consistency. All items are requirements to maintain Measure M funding eligibility as described below.
Approve 7-Year Capital Improvement Plan (CIP): The City must annually approve an updated 7-Year CIP for transportation-related expenditures that will or may be funded by Measure M. The 7-Year CIP (Attachment 1) for transportation improvement projects includes transit and street improvement projects in the current budget or 7-Year CIP that may be partially Measure M funded.
Pavement Management Plan (PMP): This year, the OCTA requires the City to prepare and maintain an updated PMP that documents the procedures used for the planning, preventive maintenance, rehabilitation, and repair of roadways identified on the County’s Master Plan of Arterial Highways, including El Toro Road and portions of Forest Avenue, Glenneyre Street, and Bluebird Canyon Drive. The City’s PMP was updated in May 2026 and is available for public review in the City Engineer’s Office (Attachment 2). The PMP evaluates pavement life cycles, assesses long-term system performance and associated costs, and supports the identification of cost-effective maintenance and rehabilitation strategies for preserving the City’s roadway network. To satisfy OCTA Measure M2 requirements and establish a formal record of approval, the City must adopt a resolution approving the PMP and affirming its conformance with applicable M2 guidelines (Attachment 3). The May 2026 PMP update indicates that the pavement improvement funding levels identified in the City’s 7-Year CIP are sufficient to maintain the City’s pavement network within the “Good” condition category.
Local Signal Synchronization Master Plan (LSSP): The OCTA requires participating agencies to update and adopt a LSSP on a three-year cycle to maintain eligibility for Measure M2 funding and demonstrate consistency with OCTA’s Regional Traffic Signal Synchronization Master Plan. The LSSP serves as a strategic framework for coordinating traffic signal operations across jurisdictional boundaries and identifying opportunities to improve regional mobility. The City’s LSSP was updated in June 2026 (Attachment 4) and is available for public review in the City Engineer’s Office and on the City’s website.
Through the LSSP, the City reaffirms its commitment to collaborating with Caltrans and OCTA to enhance traffic operations along Pacific Coast Highway (SR-1) and Laguna Canyon Road (SR-133), two critical transportation corridors that support both regional travel and local access. The LSSP identifies potential future improvements, including signal timing optimization, advanced vehicle detection technologies, emergency vehicle preemption systems, and traffic signal infrastructure upgrades that may be eligible for funding through Measure M2 Project P, the Regional Traffic Signal Synchronization Program. These improvements are intended to improve traffic flow, reduce vehicle delays, enhance emergency response capabilities, and support pedestrian safety while addressing the unique transportation demands associated APPROVAL OF 7-YEAR CAPITAL IMPROVEMENT PROGRAM FOR TRANSIT RELATED
EXPENDITURES AND RESOLUTION CONFIRMING PAVEMENT MANAGEMENT PLAN
AND RESOLUTION CONFIRMING LOCAL SIGNAL SYNCHRONIZATION MASTER PLAN FOR MEASURE M (M2) FUNDING ELIGIBILITY
June 23, 2026
with residents, visitors, special events, and emergency conditions. To satisfy Measure M2 requirements and establish a formal record of approval, the City must adopt the updated LSSP and approve the accompanying resolution affirming the City’s continued conformance with OCTA’s Regional Traffic Signal Synchronization Master Plan (Attachment 5).
Please be advised that the two resolutions (Attachment 3 and Attachment 5) do not follow the City’s standard/template resolution format. This is done because OCTA releases template resolutions for local agencies like the City to adopt in order to be eligible for Measure M2 funds. Past City adoptions of its PMP and LSSP have followed these OCTA template resolutions without issue. To avoid any confusion or inquiry by OCTA, staff recommends adopting the proposed resolutions notwithstanding the change in resolution format.
FINANCIAL ANALYSIS
Approval of the 7-Year Capital Improvement Plan, the adoption of the Pavement Management Plan Resolution update, and the adoption of the Local Signal Synchronization Plan Resolution update will allow the City to receive its local fair share of Measure M2 funding. Funding allocations for Year 1 projects will be made with City Council’s adoption of the annual budget.
ENVIRONMENTAL ANALYSIS
Approval of the 7-Year CIP, adoption of the PMP update, and adoption of the Local Signal Synchronization Plan update are exempt from the California Environmental Quality Act (CEQA) pursuant to State CEQA guidelines, Section 15262, which exempts those projects “involving only feasibility or planning studies for possible future actions which the agency, board, or commission has not approved, adopted, or funded.” The 7-Year CIP, PMP, and LSSP is a planning study that does not have a legally binding effect on later activities.
Therefore, the project has no potential for causing significant environmental effect and is exempt from CEQA review. Environmental analysis assessing the impacts of the individual projects identified in the study will be completed at a later time in compliance with CEQA prior to any construction activity.
Adoption of this resolution is not a project within the meaning of the California Environmental Quality Act (CEQA) and under CEQA Guidelines Section 15378, which states that a project does not include “government fiscal activities, which do not involve any commitment to any specific project which may result in a potentially significant physical impact on the environment. This resolution informs OCTA as to the status and update of the Circulation Element and Mitigation Fee Program to remain eligible for the Measure M (M2) program. If such funding is approved, the City may then potentially use such funds for the projects listed that will be reviewed at that later time, if not already approved by the City. Accordingly, adoption of these resolutions are not a project, and no further environmental review is necessary.
ATTACHMENTS
1. 7-Year CIP Project List (Pgs. 5-9)
2. Pavement Management Plan (Pgs. 10-59)
3. Resolution Concerning Update of Pavement Management Plan for M2 Program (Pgs. 60-61) APPROVAL OF 7-YEAR CAPITAL IMPROVEMENT PROGRAM FOR TRANSIT RELATED
EXPENDITURES AND RESOLUTION CONFIRMING PAVEMENT MANAGEMENT PLAN
AND RESOLUTION CONFIRMING LOCAL SIGNAL SYNCHRONIZATION MASTER PLAN FOR MEASURE M (M2) FUNDING ELIGIBILITY
June 23, 2026
4. Local Signal Synchronization Plan (Pgs. 62-79)
5. Resolution Concerning Update of Local Signal Synchronization Plan for M2 Program (Pgs. 80-82) Submitted By: Mark McAvoy Approved: .David A Kiff
Mark McAvoy, Director of Public
Works & Utilities
Dave Kiff, City Manager
Report Prepared By: Coordinated With:
Clarissa Macdonald, Engineering Technician Tran Tran, Assistant City Engineer