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Public Works Agency <br />www.santa-ana.org/pw <br />Item # 20 <br />City of Santa Ana <br />20 Civic Center Plaza, Santa Ana, CA 92701 <br /> Staff Report <br />June 3, 2025 <br />TOPIC: Measure M2 Funding Eligibility 2025-26 Renewal <br />AGENDA TITLE <br />Resolution to Maintain Measure M2 Funding Eligibility <br />RECOMMENDED ACTION <br />Adopt a resolution affirming consistency between the City’s Mobility Element and the <br />Orange County Master Plan of Arterial Highways (MPAH), concurring with the existing <br />Transportation System Improvement Area fee program per Orange County <br />Transportation Authority (OCTA) 2025-26 Measure M2 eligibility requirements. <br />RESOLUTION NO. 2025-XXX entitled A RESOLUTION OF THE CITY COUNCIL OF <br />THE CITY OF SANTA ANA CONCERNING THE STATUS AND UPDATE OF THE <br />MOBILITY ELEMENT, AND MITIGATION FEE PROGRAM FOR THE MEASURE M <br />(M2) PROGRAM <br />GOVERNMENT CODE §84308 APPLIES: No <br />DISCUSSION <br />In November 1990, Orange County voters approved Measure M, a one-half cent sales <br />tax increase for 20 years, to fund transportation projects in Orange County. In <br />November 2006, voters approved the Renewal of Measure M (M2), for an additional <br />thirty years, effective in April 2011. The Orange County Transportation Authority <br />(OCTA) administers M2 revenues and expenditures and Cities must meet 13 eligibility <br />requirements to qualify to receive M2 funding. A portion of the revenues generated by <br />M2 contribute to two types of local roadway funding: Local Fair Share (LFS) and <br />competitive grants. LFS funding is distributed on a formula-based allocation determined <br />by population, arterial roadway miles, and taxable sales. Competitive grant funding is <br />available through OCTA’s Comprehensive Transportation Funding Program (CTFP) and <br />regularly releases calls for projects. Cities are required to submit various M2 program <br />compliance documentation to OCTA to remain eligible for M2 funding. Fulfilling M2 <br />eligibility requirements allows the City access to over $6 million annually in LFS alone. <br />OCTA determines local agency annual eligibility for M2 funds based upon the local <br />agency’s successful and timely submittal of required documentation. As part of the