Public Works Agency
www.santa-ana.org/pw
Item # 20
City of Santa Ana
20 Civic Center Plaza, Santa Ana, CA 92701
Staff Report
November 4, 2025
TOPIC: Resolutions for the Fiscal Year 2026-27 Measure M2 Comprehensive Transportation Program Grant Applications
AGENDA TITLE
Resolutions Authorizing Grant Applications for the Fiscal Year 2026-27 Measure M2 Comprehensive Transportation Funding Program (Non-General Fund)
RECOMMENDED ACTION
1. Adopt Resolutions authorizing the City of Santa Ana to submit applications for funding consideration under the Measure M2 Comprehensive Transportation Funding Program 2026-27 Call for Projects.
RESOLUTION NO. 2025-XXX entitled A RESOLUTION OF THE CITY COUNCIL
OF THE CITY OF SANTA ANA APPROVING THE SUBMITTAL OF
IMPROVEMENT PROJECTS TO THE ORANGE COUNTY TRANSPORTATION
AUTHORITY FOR FUNDING UNDER THE COMPREHENSIVE
TRANSPORTATION PROGRAM
RESOLUTION NO. 2025-XXX entitled A RESOLUTION OF THE CITY COUNCIL
OF THE CITY OF SANTA ANA APPROVING THE SUBMITTAL OF
IMPROVEMENT PROJECTS TO THE ORANGE COUNTY TRANSPORTATION
AUTHORITY FOR FUNDING UNDER THE REGIONAL TRAFFIC SIGNAL
SYNCHRONIZATION PROGRAM
2. Direct staff to incorporate approved Comprehensive Transportation Funding Program projects into the Seven-Year Capital Improvement Program for Fiscal Year 2026-27.
GOVERNMENT CODE §84308 APPLIES: No
DISCUSSION
In 2006, Orange County voters approved Measure M2 that extends a 0.5% sales tax in Orange County. Every time residents and visitors in Orange County make a taxable purchase, a half cent for every dollar spent is received by the Orange County Transportation Authority (OCTA) to administer these funds for the implementation of transit and transportation improvement projects. In total, OCTA expects to receive
Resolutions for the Fiscal Year 2026-27 Measure M2 Comprehensive Transportation Program Grant Applications
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approximately $14 billion over the 30-year period that Measure M2 is in effect (2011- 2041). OCTA collects this revenue and distributes it as shown in the graphic below:
Santa Ana receives direct funding from the Streets component of Measure M2 in two categories, Local Fair-Share (formulaic distribution) and Competitive Grants. In order to qualify for both categories, Orange County cities must adhere to strict requirements and satisfy 13 eligibility categories.
On September 8, 2025, OCTA issued a Call for Projects for the Measure M2 Comprehensive Transportation Funding Program (CTFP) for Fiscal Year 2026-27 through 2028-29. Approximately $42 million will be available for award on a countywide, competitive grant basis via the Regional Capacity Program (Project O) for Arterial Capacity Enhancements (ACE), Intersection Capacity Enhancements (ICE), and the Regional Traffic Signal Synchronization Program (Project P). The CTFP is the mechanism by which OCTA administers competitive grant funding for street and road projects.
Staff proposes to submit applications totaling over $12.1 million in grant funding requests, which includes all project phases and requires a local match commitment of 25% for Project O, and 20% for Project P. If awarded, the existing and future local funding sources, including but not limited to Transportation System Improvement Area funds (TSIA), Gas Tax funds, and Measure M2 Fairshare funds, will be used to provide the required matching funds for the recommended projects to be budgeted in the FY 2026-27 Capital Improvement Program (CIP).
Resolutions for the Fiscal Year 2026-27 Measure M2 Comprehensive Transportation Program Grant Applications
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RECOMMENDED PROJECTS CTFP
TYPE PHASE GRANT
REQUEST FY
Fairview Street Improvements from 9th
Street to 16th Street O Construction $6,919,840 26-27
Fairview Street Improvements from 17th
to Trask O Construction $4,441,481 27-28
4th Street/Irvine Boulevard Regional
Traffic Signal Synchronization P Design/
Construction $825,000 26-27
For both Fairview projects, this request is subsequent to previously awarded funds for other phases. On November 18, 2014, City Council authorized staff to submit the Fiscal Year 2015-2016 Measure M2 CTFP application for ACE funding, which included design funds for Fairview Street Improvements from 9th Street to 16th Street to supplement the bridge replacement project over the Santa Ana River. Then, on November 17, 2020, City Council authorized staff to submit the 2021-2022 Measure M2 CTFP application for ACE funding, which included Right-of-Way funds.
Additionally, on November 16, 2021, City Council authorized staff to submit the Fiscal Year 2022-2023 Measure M2 CTFP application for ACE funding, which included design funds for Fairview Street Improvements Project from 17th Street to Trask Avenue. Then, on November 19, 2024, the City Council authorized staff to submit the 2025-2026 Measure M2 CTFP application for ACE funding, which included Right-of-Way funds. Staff is requesting Construction funds for both projects in this year’s application.
Given the need to complete the street improvements project and the project eligibility requirements defined by OCTA, staff recommends that the City Council adopt two Resolutions (Exhibits 1 and 2) authorizing submittal of the Project O and Project P CTFP application for funding consideration, as well as direct staff to incorporate approved projects into the FY 2026 Seven-Year CIP.
ENVIRONMENTAL IMPACT
There is no environmental impact associated with the action.
FISCAL IMPACT
There is no fiscal impact associated with this action at this time. The City will recognize grant award revenue, inclusive of required City local match, through future Council action during the 2026-27 CIP budget programing cycle. In the event the recommended projects are awarded, the table below provides a breakdown of the total potential funding for the identified projects:
Resolutions for the Fiscal Year 2026-27 Measure M2 Comprehensive Transportation Program Grant Applications
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RECOMMENDED PROJECTS CTFP
TYPE PHASE
CTFP
GRANT
FUNDS
CITY
MATCH
FUNDS
FY
Fairview Street Improvements from 9th
Street to 16th Street O Construction $6,922,500 $2,307,500 26-27 Fairview Street Improvements from 17th
to Trask O Construction $4,441,481 $1,480,494 26-27
4th Street/Irvine Boulevard Regional
Traffic Signal Synchronization P Design/
Construction $825,000 $206,250 26-27
EXHIBIT(S)
1. FY 26-27 CTFP Call for Projects – Project O Resolution
2. FY 26-27 CTFP Call for Projects – Project P Resolution Submitted By: Rodolfo Rosas, P.E., Acting Executive Director – Public Works Agency Approved By: Alvaro Nuñez, City Manager