Public Works Agency
www.santa-ana.org/pw
Item # 18
City of Santa Ana
20 Civic Center Plaza, Santa Ana, CA 92701
Staff Report
June 2, 2026
TOPIC: Measure M2 Funding Eligibility 2026-27 Renewal
AGENDA TITLE
Resolutions to Maintain Measure M2 Funding for the FY 2026-27 Eligibility Cycle Per the Orange County Transportation Authority Measure M2 Eligibility Guidelines (Non- General Fund)
RECOMMENDED ACTION
1. Adopt a Resolution confirming the status and update of the Pavement Management Plan per Orange County Transportation Authority 2026-27 Measure M2 eligibility requirements.
RESOLUTION NO. 2026-XXX entitled A RESOLUTION OF THE CITY COUNCIL
OF THE CITY OF SANTA ANA CONCERNING THE STATUS AND UPDATE OF THE PAVEMENT MANAGEMENT PLAN FOR THE MEASURE M2 PROGRAM
2. Adopt a Resolution confirming the status and update of the City's 2026 Local Signal Synchronization Plan to maintain eligibility for Measure M2 Program funding.
RESOLUTION NO. 2026-XXX entitled A RESOLUTION OF THE CITY COUNCIL
OF THE CITY OF SANTA ANA CONCERNING THE UPDATE OF THE LOCAL SIGNAL SYNCHRONIZATION PLAN FOR THE MEASURE M (M2) PROGRAM GOVERNMENT CODE §84308 APPLIES: No
DISCUSSION
In November 1990, Orange County voters approved Measure M, a one-half cent sales tax increase for 20 years, to fund transportation projects in Orange County. In November 2006, voters approved the Renewal of Measure M (M2) for an additional thirty years, effective April 2011. The Orange County Transportation Authority (OCTA) administers Measure M2 revenues and expenditures. In total, OCTA expects to receive over $13.2 Billion over the 30-year period that Measure M2 is in effect (2011-2041).
Measure M2 Funding Eligibility 2026-27 Renewal
June 2, 2026
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OCTA collects the one-half cent sales tax revenue and distributes it among freeway, transit, and local street improvements as shown in the following graphic:
Santa Ana receives Measure M2 funds in two categories: Local Fair-Share (LFS) (formulaic distribution) and Competitive Grants. Generally LFS funding is utilized by the City to maintain and rehabilitate streets based on the City’s Pavement Management Program, while Competitive Grant funds are used to construct transportation projects such as street widenings and bike lanes in accordance with the adopted General Plan’s Mobility Element and the County’s Master Plan of Highways.
In order to qualify for both funding categories, Santa Ana (along with all Orange County Cities) must adhere to strict requirements and satisfy 13 eligibility categories. Fulfilling M2 eligibility requirements allows the City access to over $6 million annually in LFS funding. Since the implementation of Measure M2 in April 2011, the City of Santa Ana has received approximately $71.9 million in Local Fair Share funding and approximately $185.2 million in Competitive Grant funding.
LFS has been a funding source for various street improvement projects primarily funding an annual neighborhood Local Street Preventative Maintenance (slurry seal) project. Additionally, LFS funds have contributed toward both the Warner Avenue Improvements projects and the Bristol Street Improvements as well as the Main Street Slurry Seal and Resurfacing project. Future uses of LFS funds in the fiscal year 26/27 Capital Improvement Program include Bristol Street Corridor Regional Traffic Synchronization and Industrial Street Repairs in addition to the annual neighborhood Local Street Preventative Maintenance project.
Measure M2 Funding Eligibility 2026-27 Renewal
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The City has been successful in being awarded Measure M2 Competitive Grant funding for a number of projects. Grant funds allowed for the construction of the Bristol and Warner corridor improvements as well as 10th & Flower Park stormwater capture, bus stop improvements, and various traffic signal synchronization projects. Future grant funded projects are to be determined as future awards are announced but will include Fairview Street Improvements (9th St. to Trask Ave.).
OCTA determines local agency annual eligibility for M2 funds based upon the local agency's successful and timely submittal of required documentation. As part of the requirements due by June 30, 2026, the City must update, and adopt via resolution, a Pavement Management Plan (PMP) biennially (Exhibit 1). The PMP is the City’s strategic plan to manage the preservation, rehabilitation, and maintenance of paved roads by analyzing pavement life cycles, assessing overall system performance costs, and determining alternative strategies and necessary costs to improve paved roads (Exhibit 2). A copy of the PMP with a certification must be submitted to OCTA by June 30, 2026.
Additionally, the City must update and adopt via resolution the Local Signal Synchronization Plan (LSSP) every three years (Exhibit 3). The LSSP is a planning document that helps guide traffic signal synchronization and related capital investment (Exhibit 4). The purpose of traffic signal synchronization is to relieve congestion on the arterial roadway system during peak traffic demand and avoid formation of gridlock conditions. Measure M2 includes a robust Regional Traffic Signal Synchronization funding program to aid in regional signal synchronization. The City's 2026 update to LSSP is required to be consistent with OCTA's Regional Traffic Signal Synchronization Master Plan, and must be affirmed via resolution by June 30, 2026, to continue eligibility for Net Revenues as part of Measure M2.
Staff recommends City Council adopt the proposed resolutions. Adoption of these resolutions by June 30, 2026 is required to meet Measure M2 Program guidelines, ensure that the City continues to receive Measure M2 Local Fair Share funds each year, and remain eligible for Comprehensive Transportation Funding Program (CTFP) grant funding.
ENVIRONMENTAL IMPACT
There is no environmental impact associated with this action.
Measure M2 Funding Eligibility 2026-27 Renewal
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FISCAL IMPACT
There is no fiscal impact at this time. The recommended actions will maintain the City's eligibility to receive Measure M2 funds. Upon meeting OCTA eligibility requirements, the City of Santa Ana is anticipated to receive $6,198,919 in LFS funds (as of February 2026 estimate) and an undetermined amount in M2 competitive funds for FY 2026-27.
If the recommended action is not approved, the City stands to lose Measure M2 LFS revenue and eligibility to apply for various future OCTA comprehensive funding programs.
EXHIBIT(S)
1. Resolution for Pavement Management Plan
2. 2026 Pavement Management Plan
3. Resolution for Local Signal Synchronization Plan
4. 2026 Local Signal Synchronization Plan
Submitted By: Rodolfo Rosas, P.E., Acting Executive Director, Public Works Agency Approved By: Alvaro Nuñez, City Manager