CITY COUNCIL AGENDA REPORT
MEETING DATE: 6/17/2025
DEPARTMENT: Public Works
SUBJECT:
ANNUAL RENEWED MEASURE M ("M2") ELIGIBILTY 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 2025-26 through 2031-32.
2. Adopt a Resolution entitled: A RESOLUTION OF THE CITY COUNCIL OF
THE CITY OF LAKE FOREST, CALIFORNIA, CONCERNING THE STATUS
AND UPDATE OF THE PAVEMENT MANAGEMENT PLAN FOR THE
MEASURE M ("M2") PROGRAM
3. Adopt a Resolution entitled: A RESOLUTION OF THE CITY COUNCIL OF
THE CITY OF LAKE FOREST, CALIFORNIA, CONCERNING THE STATUS
AND UPDATE OF THE CIRCULATION ELEMENT, AND MITIGATION FEE PROGRAM FOR THE MEASURE M ("M2") PROGRAM
4. Authorize the Acting 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 an updated Seven- Year Capital Improvement Program (“CIP”). In addition to the annual approval of the City’s M2 Seven-Year CIP, other elements of the eligibility packet are required on a biennial or triennial basis. This year, the required elements include the adoption of a resolution attesting to the consistency of the City’s General Plan Circulation Element with existing transportation mitigation fee programs, and submittal of the City’s updated citywide pavement management program report.
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 $15,000,000 over the next seven years from the OCTA Measure M2 Fair Share program, which the City utilizes to fund 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 (Attachment 1); adopt a Resolution confirming the City’s Circulation Element and Mitigation Fee Program (Attachment 2); and adopt a Resolution confirming the Pavement Management Plan (Attachment 4) in conformance with M2 requirements. Staff also recommend authorizing the Acting 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 (“CTFP”).
Additionally, the M2 Seven-Year CIP document and the Pavement Management Plan attached to this report satisfy OCTA’s requirements to maintain program eligibility.
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 Arterial Highways (“MPAH”) roadways, and taxable sales.
The new slate of planned M2 projects includes improvements 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 2025-26 through 2031-2032 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
The M2 Seven-Year CIP (Attachment 1) prepared by staff is consistent with projects identified in the City’s proposed Seven-Year CIP (FY 2025-2032).
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 update this document every year to allow for changes based on City Council priorities.
In addition to the annual approval of the City’s M2 Seven-Year CIP, other elements of the eligibility packet are required on a biennial or triennial basis.
OCTA requires the City Council to adopt a Resolution attesting that the City’s General Plan Circulation Element remains consistent with the Orange County MPAH (Attachment 2). This Resolution also certifies that the City has a Mitigation Fee Program that assesses traffic of the new development.
This year, OCTA also requires the City to prepare an updated Pavement Management Plan (“PMP”) which outlines the processes in place for the planning, preventative maintenance, and repair of the City’s roadways (Attachment 3). To create a record of approval, the City must adopt a Resolution confirming that the PMP is approved and in conformance with M2 requirements (Attachment 4). The City’s PMP was updated in May 2025 and indicates the current pavement improvement budget as outlined in the Seven-Year CIP ($54.7 million) will keep the City in the “Good” category. The seven-year PMP utilizes Measure M2 Fairshare, Road Maintenance Rehab Account (“SB1”), Solid Waste Pavement Impact Fund, one-time funds identified to preserve the pavement condition throughout the City, and funds from the City’s General Fund. The PCI will remain at 77 over the seven-year period based on the City’s funding projections.
Staff recommends the City Council approve the M2 Seven-Year CIP (Attachment 1); adopt a Resolution confirming the City’s Circulation Element and Mitigation Fee Program (Attachment 2); and adopt a Resolution confirming the Pavement Management Plan (Attachment 4) in conformance with M2 requirements. Staff also recommend authorizing the Acting 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.
The attached M2 Seven-Year CIP document and PMP provided with this report satisfy OCTA’s requirements to maintain program eligibility, and staff recommends the City Council approve these documents.
FISCAL IMPACT:
There is a positive fiscal impact associated with the recommended actions. The City anticipates receiving approximately $15,000,000 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 Combined Transportation Funding Program project funding for the projects identified in the M2 Seven-Year CIP.
ATTACHMENTS:
1. Measure M2 Seven-Year Capital Improvement Program (CIP)
2. Resolution for MPAH and Circulation Mitigation
3. Pavement Management Plan (PMP)
4. Resolution for Pavement Management Plan
Initiated By: Christine Groves, Administrative Services Manager Submitted By: Douglas A. Erdman, P.E., Acting Director of Public Works/City Engineer
Approved By: Debra Rose, City Manager