In November 2006, Orange County voters approved a 30-year renewal of Measure M to meet regional growth demands and continue the investment in the County’s infrastructure.  As in prior years, each local agency is required to submit approved documentation to the Orange County Transportation Authority (OCTA) to maintain Measure M2 eligibility for Local Fair Share appropriations and competitive grant funding.  

Measure M2 requires that each local jurisdiction maintain a minimum level of streets and road expenditures to conform to the MOE requirement.  The annual MOE benchmark for Garden Grove is $2,823,522.  The City has been able to meet this expenditure goal in previous years; however, any General Fund reductions would jeopardize our eligibility.

Eligibility determination is made on an annual basis and is based upon satisfactory submittal of documentation, which is due to OCTA June 30th of every year.  The required information for this year is as follows:

• Fiscal Year 2016-17 Measure M2 Seven-Year Capital Improvement Program;

• Amendment to the Fiscal Year 2014-15 Seven-Year Capital Improvement Program; and

• Certified Maintenance of Effort (MOE) Reporting Form.

The purpose of the Amendment to the Fiscal Year 2014-15 Seven-Year CIP is to include $99,000 in M2 eligible expenditures that were not initially reflected in the CIP. All other documentation has been compiled to meet all requirements set forth by Measure M2 provisions.

There is no impact to the General Fund. The City is projecting to receive $2.2 million in Measure M2 revenues for Fiscal Year 2016-17.  Non-compliance with Measure M2, such as not meeting the MOE, will disqualify the City for Local Fair Share and competitive grant funding.

It is recommended that the City Council:

• Approve the Fiscal Year 2016-17 Measure M2 Seven-Year Capital Improvement Program;

• Approve an Amendment to the Fiscal Year 2014-15 Seven-Year Capital Improvement Program for Project No. 7258, Harbor Landscape Improvement Phase II, in the amount of $99,000; and

• Certify compliance with Orange County Transportation Authority’s Maintenance of Effort requirements.

 By:   Ana V. Neal, Senior Administrative Analyst