Every year, Orange County local agencies are required to submit approved documentation and resolutions to OCTA to maintain M2 eligibility for Local Fair Share appropriations and competitive grant funding.  This year, there are three components to this annual review. These include: (1) the adoption of a 7-YR CIP, (2) conformance of the City’s Circulation Element with OCTA’s MPAH, and (3) concurrence with the City’s Mitigation Fee Program.

The following is a brief summary of the three requirements mentioned above.

1.   Seven-Year Capital Improvement Plan – Per OCTA’s eligibility requirements, the City must develop a 7-YR CIP, including all transportation capital projects scheduled to use M2 revenues. All construction costs and funding sources must also be identified. The City, however, is not obligated to deliver any identified projects. If any changes are made, City Council has to amend the 7-YR CIP accordingly.

2.   Conformance with the Master Plan of Arterial Highways – the MPAH serves as a countywide planning tool to coordinate the county’s arterial highway network. The City is required to preserve a minimum number of through lanes on the City’s arterial network, as it is identified on the General Plan’s Circulation Element.

3.   Concurrence with the Mitigation Fee Program – Biennially, City Council is required to adopt a resolution reaffirming concurrence with the City’s Mitigation Fee Program. This program is based on a nexus study, linking development activity to infrastructure impacts and their related costs, resulting in the determination of a fee schedule. 

There is no impact to the General Fund. The City is projecting to receive $2.7 million in M2 revenues in Fiscal Year 2021-22.

It is recommended that the City Council:

• Approve the Fiscal Year 2021-22 Measure M2 Seven-Year Capital Improvement Plan; and

• Adopt a Resolution assuring conformance of the City’s Circulation Element with OCTA’s Master Plan of Arterial Highways, and providing concurrence to the City’s existing Mitigation Fee Program.

By: Ana V. Neal, Sr. Administrative Analyst