That the City Council approve the Measure M2 Seven-Year Capital Improvement Program (CIP) for Fiscal Year 2022-2023 and authorize staff to submit the required documents to the Orange County Transportation Authority (OCTA) to comply with the Measure M2 eligibility requirements for Fiscal Year 2022-2023.

In June 1990 California voters approved Proposition 111, which increased the tax paid by consumers upon the purchase of motor vehicle fuel (Gas Tax).  Pursuant to Proposition 111, California cities are allocated a portion of gas tax revenue as a source of funds to pay for local transportation projects.  Gas tax funding will provide the City of La Habra with approximately $1,738,102 during Fiscal Year 2022-2023 and will be used to fund a variety of road improvement projects, including street rehabilitation, street widening, curb and gutter repair/reconstruction, sidewalks, curb access ramps, parkway improvements, signal and intersection improvements, striping, and signing.

On November 7, 2006, Orange County voters approved a 30-year, multi-billion-dollar program extension of the original Measure M (1991-2011) program, a local half-cent transportation sales tax to fund transportation projects in Orange County.  The Orange County Transportation Authority (OCTA) administers Measure M. When Measure M was extended, it was rebranded as “Measure M2.”  Measure M2 provides an apportionment of sales tax revenue to local jurisdictions for street maintenance and improvements.

Known as the Measure M2 “Fair Share”, revenue is apportioned to local jurisdictions based on several factors, including population, miles of existing Master Plan of Arterial Highways (MPAH), roadways, and taxable sales. OCTA estimates that the City of La Habra will receive $1,129,400 from its “Fair Share” apportionment during Fiscal Year 2022-2023.

On June 13, 2022, the City of La Habra Planning Commission considered and determined that the proposed Seven-Year CIP is consistent with the City’s General Plan 2035.  Engineering Division staff therefore requests that the City Council consider and approve the Updated Measure M2 Seven-Year CIP covering Fiscal Year 2022-2023 through Fiscal Year 2028-2029. The Seven-Year CIP includes all transportation projects funded partially or wholly by Measure M2 and Gas Tax dollars. The Seven-Year CIP is a planning document and may be amended to reflect changes in priorities and conditions that may occur throughout the course of any given year over the seven-year cycle.
 
In order to maintain its eligibility to receive Measure M2 funding, the City of La Habra is required to submit to OCTA, on or before June 30, 2022, the Measure M2 Seven-Year CIP for Fiscal Year 2022-23 through 2028-29, consistent with the proposed citywide CIP Budget for Fiscal Year 2022-23. The submittal of the Measure M2 Seven-Year CIP does not commit the City to funding all improvements identified therein; however, projects must be included in the M2 Seven-Year CIP in order to establish eligibility to receive Measure M2 funding. This document is updated annually to allow for policy changes based on any changes in City Council priorities. The CIP emphasizes projects that are intended to improve and/or mitigate traffic circulation or congestion, as well as maintain the City’s investment in existing transportation infrastructure.

For the City to maintain M2 eligibility, the Measure M2 Seven-Year CIP Program must be approved and submitted to OCTA on or before June 30, 2022, in order to continue to receive “Fair Share” and competitive funding, as well as continued eligibility for Gas Tax funding. Staff estimates that the City will receive approximately $1,738,102 from Gas Tax (per the May 23, 2022 Local Streets and Roads Estimate report) and $1,129,400 from Measure M2 Fair Share (per the April 4, 2022 OCTA report) during Fiscal Year 2022- 2023.  Failure to submit the Measure M2 Seven-Year CIP Program to OCTA could jeopardize the City's ability to receive these capital improvement funds and potentially impact the City's ability to complete previously planned projects.