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HomeMy WebLinkAboutItem 20 - Resolutions for the FY 2026-27 M2 Funding Public Works Agency www.santa-ana.org/pw Item # 20 City of Santa Ana 20 Civic Center Plaza, Santa Ana, CA 92701 Staff Report November 4, 2025 TOPIC: Resolutions for the Fiscal Year 2026-27 Measure M2 Comprehensive Transportation Program Grant Applications AGENDA TITLE Resolutions Authorizing Grant Applications for the Fiscal Year 2026-27 Measure M2 Comprehensive Transportation Funding Program (Non-General Fund) RECOMMENDED ACTION 1. Adopt Resolutions authorizing the City of Santa Ana to submit applications for funding consideration under the Measure M2 Comprehensive Transportation Funding Program 2026-27 Call for Projects. RESOLUTION NO. 2025-XXX entitled A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA ANA APPROVING THE SUBMITTAL OF IMPROVEMENT PROJECTS TO THE ORANGE COUNTY TRANSPORTATION AUTHORITY FOR FUNDING UNDER THE COMPREHENSIVE TRANSPORTATION PROGRAM RESOLUTION NO. 2025-XXX entitled A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA ANA APPROVING THE SUBMITTAL OF IMPROVEMENT PROJECTS TO THE ORANGE COUNTY TRANSPORTATION AUTHORITY FOR FUNDING UNDER THE REGIONAL TRAFFIC SIGNAL SYNCHRONIZATION PROGRAM 2. Direct staff to incorporate approved Comprehensive Transportation Funding Program projects into the Seven-Year Capital Improvement Program for Fiscal Year 2026-27. GOVERNMENT CODE §84308 APPLIES: No DISCUSSION In 2006, Orange County voters approved Measure M2 that extends a 0.5% sales tax in Orange County. Every time residents and visitors in Orange County make a taxable purchase, a half cent for every dollar spent is received by the Orange County Transportation Authority (OCTA) to administer these funds for the implementation of transit and transportation improvement projects. In total, OCTA expects to receive Resolutions for the Fiscal Year 2026-27 Measure M2 Comprehensive Transportation Program Grant Applications November 4, 2025 Page 2 5 4 0 3 approximately $14 billion over the 30-year period that Measure M2 is in effect (2011- 2041). OCTA collects this revenue and distributes it as shown in the graphic below: Santa Ana receives direct funding from the Streets component of Measure M2 in two categories, Local Fair-Share (formulaic distribution) and Competitive Grants. In order to qualify for both categories, Orange County cities must adhere to strict requirements and satisfy 13 eligibility categories. On September 8, 2025, OCTA issued a Call for Projects for the Measure M2 Comprehensive Transportation Funding Program (CTFP) for Fiscal Year 2026-27 through 2028-29. Approximately $42 million will be available for award on a countywide, competitive grant basis via the Regional Capacity Program (Project O) for Arterial Capacity Enhancements (ACE), Intersection Capacity Enhancements (ICE), and the Regional Traffic Signal Synchronization Program (Project P). The CTFP is the mechanism by which OCTA administers competitive grant funding for street and road projects. Staff proposes to submit applications totaling over $12.1 million in grant funding requests, which includes all project phases and requires a local match commitment of 25% for Project O, and 20% for Project P. If awarded, the existing and future local funding sources, including but not limited to Transportation System Improvement Area funds (TSIA), Gas Tax funds, and Measure M2 Fairshare funds, will be used to provide the required matching funds for the recommended projects to be budgeted in the FY 2026-27 Capital Improvement Program (CIP). Resolutions for the Fiscal Year 2026-27 Measure M2 Comprehensive Transportation Program Grant Applications November 4, 2025 Page 3 5 4 0 3 RECOMMENDED PROJECTS CTFP TYPE PHASE GRANT REQUEST FY Fairview Street Improvements from 9th Street to 16th Street O Construction $6,919,840 26-27 Fairview Street Improvements from 17th to Trask O Construction $4,441,481 27-28 4th Street/Irvine Boulevard Regional Traffic Signal Synchronization P Design/ Construction $825,000 26-27 For both Fairview projects, this request is subsequent to previously awarded funds for other phases. On November 18, 2014, City Council authorized staff to submit the Fiscal Year 2015-2016 Measure M2 CTFP application for ACE funding, which included design funds for Fairview Street Improvements from 9th Street to 16th Street to supplement the bridge replacement project over the Santa Ana River. Then, on November 17, 2020, City Council authorized staff to submit the 2021-2022 Measure M2 CTFP application for ACE funding, which included Right-of-Way funds. Additionally, on November 16, 2021, City Council authorized staff to submit the Fiscal Year 2022-2023 Measure M2 CTFP application for ACE funding, which included design funds for Fairview Street Improvements Project from 17th Street to Trask Avenue. Then, on November 19, 2024, the City Council authorized staff to submit the 2025-2026 Measure M2 CTFP application for ACE funding, which included Right-of-Way funds. Staff is requesting Construction funds for both projects in this year’s application. Given the need to complete the street improvements project and the project eligibility requirements defined by OCTA, staff recommends that the City Council adopt two Resolutions (Exhibits 1 and 2) authorizing submittal of the Project O and Project P CTFP application for funding consideration, as well as direct staff to incorporate approved projects into the FY 2026 Seven-Year CIP. ENVIRONMENTAL IMPACT There is no environmental impact associated with the action. FISCAL IMPACT There is no fiscal impact associated with this action at this time. The City will recognize grant award revenue, inclusive of required City local match, through future Council action during the 2026-27 CIP budget programing cycle. In the event the recommended projects are awarded, the table below provides a breakdown of the total potential funding for the identified projects: Resolutions for the Fiscal Year 2026-27 Measure M2 Comprehensive Transportation Program Grant Applications November 4, 2025 Page 4 5 4 0 3 RECOMMENDED PROJECTS CTFP TYPE PHASE CTFP GRANT FUNDS CITY MATCH FUNDS FY Fairview Street Improvements from 9th Street to 16th Street O Construction $6,922,500 $2,307,500 26-27 Fairview Street Improvements from 17th to Trask O Construction $4,441,481 $1,480,494 26-27 4th Street/Irvine Boulevard Regional Traffic Signal Synchronization P Design/ Construction $825,000 $206,250 26-27 EXHIBIT(S) 1. FY 26-27 CTFP Call for Projects – Project O Resolution 2. FY 26-27 CTFP Call for Projects – Project P Resolution Submitted By: Rodolfo Rosas, P.E., Acting Executive Director – Public Works Agency Approved By: Alvaro Nuñez, City Manager Resolution No. 2025-XXX Page 1 of 3 RESOLUTION NO. 2025-XXX A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA ANA APPROVING THE SUBMITTAL OF IMPROVEMENT PROJECTS TO THE ORANGE COUNTY TRANSPORTATION AUTHORITY FOR FUNDING UNDER THE COMPREHENSIVE TRANSPORTATION PROGRAM BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SANTA ANA AS FOLLOWS: Section 1. The City Council of the City of Santa Ana hereby finds, determines and declares as follows: A. The City of Santa Ana desires to implement the transportation improvements listed below. B. The City of Santa Ana has been declared by the Orange County Transportation Authority to meet the eligibility requirements to receive Measure M2 “Fair Share” funds. C. The City of Santa Ana’s Circulation Element is consistent with the County of Orange Master Plan of Arterial Highways. D. The City of Santa Ana will not use Measure M2 funds to supplant Developer Fees or other commitments. E. The City of Santa Ana must include all projects funded by M2 Net Revenues in its seven-year Capital Improvement Program, as part of the Measure M2 Ordinance eligibility requirements. F. The City of Santa Ana will provide a minimum of 25% matching funds for the Project O projects as required by the Orange County Comprehensive Transportation Funding Programs Guidelines. G. The Orange County Transportation Authority intends to allocate funds for transportation improvement projects, if approved, within the incorporated cities and the County. H. The City of Santa Ana authorizes a formal amendment to the seven-year Capital Improvement Program to add projects approved for Measure M2 funding upon approval from the Orange County Transportation Authority Board of Directors, if necessary. Resolution No. 2025-XXX Page 2 of 3 Section 2. The City Council of the City of Santa Ana hereby approves the formal submissions of the projects described below to the Orange County Transportation Authority for funding under the OCTA’s Comprehensive Transportation Funding Program and requests that the OCTA allocate funds in the amounts specified in the City of Santa Ana’s submissions. Said funds shall be matched by funds from the City of Santa Ana as required and shall be used as supplemental funding to aid the City of Santa Ana in the improvement of the following street(s). “ACE” shall mean Arterial Capacity Enhancement and “ICE” shall mean Intersection Capacity Enhancements. PROJECT PROGRAM FY Fairview Street Improvements (9th Street to 16th Street) ACE 26/27 Fairview Street Improvements (17th Street to Trask Avenue) ACE 26/27 Section 3. The City Council of the City of Santa Ana appoints the City Manager, or the Executive Director of the Public Works Agency or his or her designee, as agent for the City of Santa Ana to conduct all negotiations, and execute and submit all documents, including but not limited to applications, agreements, amendments, payment requests and so on, which may be necessary for allocation of the requested funds to Santa Ana. Section 4. This Resolution shall take effect immediately upon its adoption by the City Council, and the City Clerk shall attest to and certify the vote adopting this Resolution. ADOPTED this ___ day of ___________, 2025. Valerie Amezcua Mayor APPROVED AS TO FORM: Sonia R. Carvalho, City Attorney By: Kyle Nellesen Assistant City Attorney Resolution No. 2025-XXX Page 3 of 3 AYES: Councilmembers NOES: Councilmembers ABSTAIN: Councilmembers NOT PRESENT: Councilmembers _ CERTIFICATE OF ATTESTATION AND ORIGINALITY I, _________, Jennifer L. Hall, do hereby certify the attached Resolution No. 2025- ____ to be the original resolution adopted by the City Council of the City of Santa Ana on _____________________, 2025. Date: City Clerk City of Santa Ana Resolution No. 2025-XXX Page 1 of 3 RESOLUTION NO. 2025-XXX A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA ANA APPROVING THE SUBMITTAL OF IMPROVEMENT PROJECTS TO THE ORANGE COUNTY TRANSPORTATION AUTHORITY FOR FUNDING UNDER THE REGIONAL TRAFFIC SIGNAL SYNCHRONIZATION PROGRAM BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SANTA ANA AS FOLLOWS: Section 1. The City Council of the City of Santa Ana hereby finds, determines and declares as follows: A. The Measure M2 Regional Traffic Signal Synchronization Program targets over 2,000 signalized intersections across Orange County to maintain traffic signal synchronization, improve traffic flow, and reduce congestion across jurisdictions. B. The City of Santa Ana has been declared by the Orange County Transportation Authority to meet the eligibility requirements to receive revenues as part of Measure M2. C. The City of Santa Ana must include all projects funded by Net Revenues in the seven-year Capital Improvement Program as part of the Renewed Measure M Ordinance eligibility requirement. D. The City of Santa Ana authorizes a formal amendment to the seven-year Capital Improvement Program to add projects approved for funding upon approval from the Orange County Transportation Authority Board of Directors, if necessary. E. The City of Santa Ana has currently adopted a Local Signal Synchronization Plan consistent with the Regional Traffic Signal Synchronization Master Plan as a key component of local agencies’ efforts to synchronizing traffic signals across local agencies’ boundaries. F. The City of Santa Ana will provide matching funds for each project as required by the Comprehensive Transportation Funding Programs Procedures Manual. G. The City of Santa Ana will not use Renewed Measure M funds to supplant Developer Fees or other commitments. Resolution No. 2025-XXX Page 2 of 3 H.The City of Santa Ana desires to implement multi-jurisdictional signal synchronization listed below. Section 2. The City Council of the City of Santa Ana hereby approves the formal submissions of the projects described below to the Orange County Transportation Authority for funding under the OCTA’s Regional Traffic Signal Synchronization Program and requests that the OCTA allocate funds in the amounts specified in the City’s submissions. Said funds shall be matched by funds from Santa Ana as required and shall be used as supplemental funding to aid the City in signal synchronization along the following street(s): PROJECT PROGRAM FY Section 3. The City Council of the City of Santa Ana appoints the City Manager, or his or her designee, as agent for the City of Santa Ana to conduct all negotiations, and execute and submit all documents, including but not limited to applications, agreements, amendments, payment requests and so on, which may be necessary for allocation of the requested funds to Santa Ana. Section 4. This Resolution shall take effect immediately upon its adoption by the City Council, and the City Clerk shall attest to and certify the vote adopting this Resolution. ADOPTED this ____ day of ___________________, 2025. Valerie Amezcua Mayor APPROVED AS TO FORM: Sonia R. Carvalho, City Attorney By: Kyle Nellesen Assistant City Attorney 4th Street/Irvine Boulevard Regional Traffic Signal Synchronization RTSSP 26/27 Resolution No. 2025-XXX Page 3 of 3 AYES: Councilmembers NOES: Councilmembers ABSTAIN: Councilmembers NOT PRESENT: Councilmembers _ CERTIFICATE OF ATTESTATION AND ORIGINALITY I, Jennifer L. Hall, City Clerk, do hereby certify the attached Resolution No. 2025- ____ to be the original resolution adopted by the City Council of the City of Santa Ana on _____________________, 2025. Date: City Clerk City of Santa Ana