That the City Council:

A. Approve and adopt the Measure M2 Seven-Year Capital Improvement Program (CIP) for Fiscal Year 2025-2026, an update of the Master Plan of Arterial Highways (MPAH) Circulation Element, the updated Mitigation Fee Program, and the updated Pavement Management Plan;
 

B. 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 2025-2026;

 

C. APPROVE AND ADOPT RESOLUTION NO. CC 2025-__ ENTITLED: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LA HABRA, CALIFORNIA, CONCERNING THE STATUS AND UPDATE OF THE CIRCULATION ELEMENT, AND MITIGATION FEE PROGRAM FOR THE MEASURE M2 (M2) PROGRAM; and,

D. APPROVE AND ADOPT RESOLUTION NO. CC 2025-__ ENTITLED: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LA HABRA, CALIFORNIA, CONCERNING THE STATUS AND UPDATE OF THE PAVEMENT MANAGEMENT PLAN FOR THE MEASURE M2 (M2) PROGRAM.

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, cities in California 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 $1.8 million during Fiscal Year 2025-2026 that 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 Measure M (1991-2011) funding program, a countywide half-cent transportation focused sales tax to help fund transportation projects in Orange County. The Orange County Transportation Authority (OCTA) is responsible for the administration of Measure M (and M2) funding. When it was extended, the original Measure M was rebranded as "Measure M2", and provides an apportionment of sales tax revenue for local jurisdictions for street maintenance and improvements. Known as the Measure M2 "Fair Share", the 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 approximately $1.3 million from "Fair Share" apportionment during Fiscal Year 2025-2026. 

 

On June 9, 2025, the City of La Habra Planning Commission considered and determined that the City's proposed Seven-Year Capital Improvement Program (CIP) is consistent with the City's General Plan 2035. Staff is submitting for City Council's review and adoption the updated Measure M2 Seven-Year CIP for the period of Fiscal Year 2025-2026 through Fiscal Year 2031-2032. The Seven-Year CIP includes all transportation projects funded partially or wholly by Measure M2 and Gas Tax proceeds. 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 each fiscal year during the seven-year-cycle. 
 

In order to maintain its eligibility to receive Measure M2 sales tax revenue, the City of La Habra is required to submit to OCTA the following documents on or before June 30, 2025:

 

1.     M2 Seven-Year Capital Improvement Program (CIP)

The City's Measure M2 Seven-Year CIP for Fiscal Year 2025-26 through Fiscal Year 2031-32 consistent with the proposed citywide CIP Budget for Fiscal Year 2025-26. The submittal of the Measure 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 Measure M2 funding. This document is updated annually to allow for changes based on City Council priorities and roadway conditions. The CIP emphasizes projects that improve circulation, mitigate traffic congestion, and maintain the City's investment in existing transportation infrastructure. 
 

In order to continue receiving Measure M2 "Fair Share" and competitive funding, as well as continued eligibility for state Gas Tax funding, the City is required to submit several documents to OCTA, including the Measure M2 Seven-Year CIP Program, the Circulation Element, the Mitigation Fee Program, and the Pavement Management Plan, and the proposed resolutions attached to this report. 

If approved by City Council, staff estimates that the City will receive approximately $1.8 million from state Gas Tax funding and approximately $1.3 million from Orange County Measure M2 Fair Share Funding for Fiscal Year 2025-2026. Failure to submit the required documentation to OCTA could jeopardize the City's ability to receive these capital improvement funds and would impact the City's ability to complete previously planned projects.