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EXHIBIT 2 <br /> City of Santa Ana, CA Page 11 <br /> 2026 Citywide Pavement Management Plan - OCTA Submittal <br /> Final Report-March 16, 2026 <br /> X. REDUCTION IN M2 LOCAL MATCH <br /> A local agency match reduction of 10% of the eligible cost for projects submitted for consideration of <br /> funding through the M2 Comprehensive Transportation Funding Programs (CTFP) call for projects is <br /> available if the local agency either: <br /> a. Shows measurable improvement of paved road conditions during the previous reporting <br /> period defined as an overall weighted (by area) average system improvement of one <br /> Pavement Condition Index (PCI) point with no reduction in the overall weighted (by area) <br /> average PCI in the Master Plan of Arterial Highways (MPAH) or local categories: <br /> or <br /> b. Have road pavement conditions during the previous reporting period,within the highest 20% <br /> of the scale for road pavement conditions in conformance with OCTA Ordinance No. 3, <br /> defined as a PCI of 75 or higher, otherwise defined as in "good condition". <br /> Road conditions found through our 2026 PMP management study shows that the City is eligible for Local <br /> Match Reduction based on the current network weighted PCI of 75.2. Additionally,the City of Santa Ana <br /> has demonstrated, with the enclosed budget projections (page 9), that the City's weighted average PCI <br /> (by area) remains above a PCI of 75 after the seven-year program. <br />