That the City Council APPROVE AND ADOPT RESOLUTION NO. ____ ENTITLED:  A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LA HABRA, CALIFORNIA, AUTHORIZING AN APPLICATION FOR FUNDS FOR THE ENVIRONMENTAL CLEANUP, TIER 1 GRANT PROGRAM UNDER ORANGE COUNTY LOCAL TRANSPORTATION ORDINANCE NO. 3 FOR FULL TRASH CAPTURE SYSTEM INSTALLATIONS.

The Environmental Cleanup Program provides for Measure M2 (M2) revenues to improve the overall water quality in Orange County from transportation-related pollution.  Specifically, the Orange County Transportation Authority’s Ordinance No. 3 (M2 Ordinance) stipulates that two percent of the gross M2 revenue be dedicated to protecting Orange County beaches and waterways from the conveyance of urban runoff and to improve the County’s overall water quality. 

On February 13, 2023, OCTA issued a call for projects for Tier 1 funding under the M2 Environmental Cleanup Program.  Approximately $3 million in grant funding will be made available for projects in FY 2023-2024.  There is no minimum funding request required. All Orange County cities and the County of Orange are eligible to apply for funding for their prospective projects on a competitive basis. 

The M2 Environmental Cleanup Program requires the participating agency to provide minimum matching funds of 20 percent for each project. The matching funds must consist of a cash contribution using any discretionary funds including the General Fund or M2 Local Fair Share funds. If approved by Council, staff will be proposing an improvement project under this grant that consists of the installation of connector pipe screens at selected catch basins throughout the City. The total proposed project cost is estimated at $250,000. Staff proposes that the 20 percent matching funds component of $50,000 be included in the upcoming FY 2023-2024 Capital Improvement Program (CIP) budget to be allocated from M2 Fair Share Funds. 

Staff is planning on submitting the project application to OCTA be the application deadline of April 27, 2023. OCTA allows the City to submit the grant application prior to the Resolution being considered and approved by Council as long as the Resolution is signed and submitted prior to award of the grant in July 2023. If approved, staff will submit the signed Resolution promptly to OCTA to complete the application for funding.

If this application is successful and approved by OCTA, the City will be required to provide a 20 percent local matching funds of the grant amount. Based on the proposed project improvements of $250,000, staff anticipates the local match to be approximately $50,000. If approved, staff will include this project in the upcoming FY 2023-2024 Capital Improvement Program (CIP) budget, with the $50,000 local match component allocated to M2 Fair Share Funds.