That the City Council:
A. Approve and adopt the Measure M2 Seven-Year Capital Improvement Program (CIP) for Fiscal Year 2026-2027, and an update of the Local Signal Synchronization 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 2026-2027; and,

C. APPROVE AND ADOPT RESOLUTION NO. CC 2026-__ ENTITLED:  A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LA HABRA, CALIFORNIA, CONCERNING THE UPDATE OF THE LOCAL SIGNAL SYNCHRONIZATION 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 2026-2027 and will be used to fund a variety of proposed road improvement projects, including street rehabilitation and repaving, street widening, curb and gutter repair/reconstruction, sidewalks, curb access ramps, parkway improvements, signal and intersection improvements, signage and striping.

On November 7, 2006, Orange County voters approved a 30-year, multi-billion-dollar program extension of the original Measure M (1991-2011) funding program, a local half-cent transportation sales tax to fund transportation projects in Orange County. The Orange County Transportation Authority (OCTA) is responsible for the administration of Measure M funding. When it was extended, the original Measure M was rebranded as "Measure M2", and provides an apportionment of this countywide sales tax revenue to local jurisdictions in Orange County 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 2026-2027.

On June 8, 2026, 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 now submitting the Updated Measure M2 Seven-Year CIP for the period of Fiscal Year 2026-2027 through Fiscal Year 2032-2033 for City Council review and approval. 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 revenues, the City of La Habra is required to submit to OCTA the following documents on or before June 30, 2026: 
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1.   M2 Seven-Year Capital Improvement Program (CIP) the M2 Seven-Year Capital Improvement Program (CIP). The City's Measure M2 Seven-Year CIP for Fiscal Year 2026-2027 through 2032-2033 is consistent with the proposed citywide CIP Budget for Fiscal Year 2026-2027. 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. The CIP emphasizes projects that improve traffic and pedestrian circulation, mitigating traffic congestion, and maintaining the City's investment in existing transportation infrastructure. 

2.   Local Signal Synchronization Plan (LSSP):  The City's LSSP is a three-year plan identifying traffic signal synchronization, street routes, and traffic signals to be improved, including all elements of the Regional Signal Synchronization Network located within the City. It includes goals that are consistent with those outlined as part of OCTA's Regional Traffic Signal Synchronization Master Plan, including signal synchronization across jurisdictions. An updated plan is required for submittal to OCTA as part of the City's eligibility documentation. The City's LSSP was updated in May 2026 and includes a three-year outlook for Fiscal Year 2026-2027 through 2028-2029.

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 and the Local Signal Synchronization 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 2026- 2027. 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.