CITY COUNCIL AGENDA REPORT
MEETING DATE: 6/18/2024
DEPARTMENT: Public Works
SUBJECT:
ANNUAL RENEWED MEASURE M ("M2") ELIGIBILITY SUBMITTAL TO THE
ORANGE COUNTY TRANSPORTATION AUTHORITY
RECOMMENDED ACTION(S):
1. Approve the Renewed Measure M ("M2") Seven-Year Capital Improvement Program for Fiscal Years 2024-25 through 2030-2031.
2. Authorize the Director of Public Works to forward all eligibility requirements including the approved Renewed Measure M ("M2") Seven-Year Capital Improvement Program to the Orange County Transportation Authority ("OCTA").
EXECUTIVE SUMMARY:
The Orange County Transportation Authority (“OCTA”) requires each city to satisfy certain requirements to remain eligible for Local Fair Share and competitive grants through the Renewed Measure M (“M2”) program. Required eligibility documentation includes City Council approval of a Seven-Year Capital Improvement Program (“CIP”).
The City uses M2 Funds for certain roadway improvements, to meet senior transportation needs, and other programs that mitigate the environmental impact of transportation and promote mobility within the city. The City anticipates receiving approximately $16,400,000 over the next seven years from the OCTA Measure M2 Fair Share program which the City utilizes to fund the annual street resurfacing and slurry seal projects. The recommended actions are in accordance with OCTA’s compliance requirements and qualify the City to receive Measure M2 Local Fair Share and competitive grant funding.
Staff recommends the City Council approve the M2 Seven-Year CIP and to authorize the Public Works Director to forward all eligibility requirements to OCTA. The recommended actions would ensure the City retains eligibility for funding under the M2 program and could continue participating in OCTA’s Combined Transportation Funding Program. Additionally, the M2 Seven-Year CIP document attached to this report satisfies OCTA’s requirements to maintain program eligibility (Attachment).
BACKGROUND:
Measure M2 (also known as “OC Go”) is a 30-year, ½ cent sales tax program for transportation improvement projects. M2 is an extension of the original Measure M (approved in 1990) with a new slate of planned projects and programs. OCTA administers the proceeds from M2 sales tax, including apportionment to local jurisdictions for street maintenance and improvements. The proportional, or “Fair Share,” of sales tax money for eligible jurisdictions is distributed based on population, miles of existing Master Plan of Arterial Highways (“MPAH”) roadways, and taxable sales. The new slate of planned M2 projects includes improvement to public transportation infrastructure, including freeways, arterial roadways, and environmental cleanup projects. To receive funding from the OCTA’s “Fair Share” or competitive grant programs, local jurisdictions must prepare and submit an M2 eligibility packet. Annual approval of the M2 Seven- Year CIP for Fiscal Years 2024-25 through 2030-31 is a necessary component of the City’s eligibility packet to OCTA.
DISCUSSION:
Each year, OCTA determines whether a local jurisdiction is eligible to receive M2 funds. To be deemed eligible, the City annually prepares and submits a packet that contains the following elements:
•Evidence of compliance with the conditions and requirements of the Orange County Congestion Management Program (“CMP”)
•Adopted Capital Improvement Program (“CIP”)
•Evidence of participation in OCTA traffic forums
•Adopted and maintained Local Signal Synchronization Plan (“LSSP”) •Adopted and biennially updated Pavement Management Plan (“PMP”) •Adopted General Plan Circulation Element consistent with the MPAH •Satisfaction of Maintenance of Effort requirements
•Agreement to expend all Local Fair Share revenues received through M2 within three years of receipt
•Adopted Expenditure Report, provided annually to OCTA
The M2 Seven-Year CIP (Attachment 1) prepared by staff is consistent with projects identified in the City’s proposed Seven-Year CIP (FY 2024-31).
Generally, these include street resurfacing and slurry seal programs, traffic signal synchronization projects, and intersection improvements. The submittal of the M2 Seven-Year CIP does not commit the City to funding the identified improvements.
However, projects must be included in the M2 Seven-Year CIP to be eligible to receive M2 funding. Staff updates this document every year to allow for changes based on City Council priorities. Other elements of the eligibility packet are required on a biennial or triennial basis. This year, only the M2 Seven-Year CIP is due as part of the packet.
Staff recommends the City Council approve the M2 Seven-Year CIP (Attachment). Staff also recommend authorizing the Director of Public Works/City Engineer to forward all eligibility requirements to OCTA. The recommended actions would ensure the City retains eligibility for funding under the M2 program and could continue participating in OCTA’s Combined Transportation Funding Programs (“CTFP”).
FISCAL IMPACT:
There is a positive fiscal impact associated with the recommended actions. The City anticipates receiving approximately $16,400,000 from the OCTA Measure M2 Fair Share program to fund the City’s annual street resurfacing and slurry seal projects over the next seven years. The City would also be eligible to compete for CTFP project funding for the projects identified in the M2 Seven- Year CIP.
ATTACHMENTS:
Measure M2 Seven-Year Capital Improvement Program (CIP) Initiated By: Christine Groves, Administrative Services Manager Submitted By: Thomas E. Wheeler, P.E., Director of Public Works/City Engineer Approved By: Debra Rose, City Manager