Orange County Transportation Authority  
Finance and Administration Committee Agenda  
Wednesday, May 28, 2025 at 10:30 a.m.  
Board Room, 550 South Main Street, Orange, California  
Committee Members  
Michael Hennessey, Chair  
Patrick Harper, Vice Chair  
Jamey M. Federico  
William Go  
Carlos A. Leon  
Vicente Sarmiento  
Mark Tettemer  
Any person with a disability who requires a modification or accommodation in order to participate  
in this meeting should contact the Orange County Transportation Authority (OCTA) Clerk of the  
Board's office at (714) 560-5676, no less than two business days prior to this meeting to enable  
OCTA to make reasonable arrangements to assure accessibility to this meeting.  
Agenda Descriptions  
Agenda descriptions are intended to give members of the public a general summary of items of  
business to be transacted or discussed. The posting of the recommended actions does not  
indicate what action will be taken. The Committee may take any action which it deems to be  
appropriate on the agenda item and is not limited in any way by the notice of the recommended  
action.  
Public Availability of Agenda Materials  
All documents relative to the items referenced in this agenda are available for public inspection at  
www.octa.net or through the Clerk of the Board’s office at the OCTA Headquarters, 600 South  
Main Street, Orange, California.  
Meeting Access and Public Comments on Agenda Items  
Members of the public can either attend in-person or access live streaming of the Committee  
meetings by clicking this link: https://octa.legistar.com/Calendar.aspx  
In-Person Comment  
Members of the public may attend in-person and address the Board regarding any item within the  
subject matter jurisdiction of the Orange County Transportation Authority. Please complete a  
speaker’s card and submit it to the Clerk of the Board and notify the Clerk regarding the agenda  
item number on which you wish to speak. Speakers will be recognized by the Chair at the time of  
the agenda item is to be considered by the Board. Comments will be limited to three minutes. The  
Brown Act prohibits the Board from either discussing or taking action on any non-agendized  
items.  
Written Comment  
Written public comments may also be submitted by emailing them to ClerkOffice@octa.net, and  
must be sent by 5:00 p.m. the day prior to the meeting. If you wish to comment on a specific  
agenda Item, please identify the Item number in your email. All public comments that are timely  
received will be part of the public record and distributed to the Board. Public comments will be  
made available to the public upon request.  
Call to Order  
Pledge of Allegiance  
Director Sarmiento  
Closed Session  
There are no Closed Session items scheduled.  
Special Calendar  
1.  
Investment Management Presentation - PFM Asset Management  
Robert Davis/Andrew Oftelie  
Overview  
PFM Asset Management is one of four firms contracted by the Orange County  
Transportation Authority to oversee the Managed Investment Portfolio. Representatives  
from PFM Asset Management will provide an overview of their firm, share market insights,  
and present an update on Orange County Transportation Authority’s portfolio.  
Attachments:  
Presentation  
Consent Calendar (Items 2 through 8)  
All items on the Consent Calendar are to be approved in one motion unless a Committee  
Member or a member of the public requests separate action or discussion on a specific item.  
2.  
Approval of Minutes  
Clerk of the Board  
Recommendation (s)  
Approve the minutes of the May 12, 2025 Finance and Administration Committee meeting.  
Attachments:  
Minutes  
3.  
Contracted Fixed-Route Services, Internal Audit Report No. 25-510  
Serena Ng/Janet Sutter  
Overview  
The Internal Audit Department of the Orange County Transportation Authority has  
completed an audit of contracted fixed-route services provided by Keolis Transit Services,  
LLC. Based on the audit, procurements and amendments were handled in accordance  
with procurement policies and procedures, and invoice review controls are in place and  
operating effectively. However, recommendations have been made to improve monitoring  
of contract performance standards and bond and insurance requirements.  
Recommendation(s)  
Direct staff to implement two recommendations provided in Contracted Fixed-Route  
Services, Internal Audit Report No. 25-510.  
Attachments:  
Staff Report  
Attachment A  
4.  
91 Express Lanes Update for the Period Ending - March 31, 2025  
Kirk Avila  
Overview  
The Orange County Transportation Authority has owned and managed the operations of  
the 91 Express Lanes since January 2003. Since then, traffic volumes and toll revenues  
have fluctuated with changes in the economy and the added capacity to the State Route 91  
corridor. Over the last quarter, over 5.2 million trips were made on the 91 Express Lanes in  
Orange County. This report focuses on the operational and financial activities for the  
period ending March 31, 2025.  
Recommendation(s)  
Receive and file as an information item.  
Attachments:  
Staff Report  
Attachment A  
Attachment B  
5.  
Amendment  
to  
the  
91 Express  
Lanes  
Riverside  
County  
Transportation  
Commission / Orange County Transportation Authority Facility Agreement  
Kirk Avila  
Overview  
The 91 Express Lanes Riverside County Transportation Commission / Orange County  
Transportation Authority Facility Agreement prescribes the funding transfers between the  
two agencies for costs incurred for the rent and any shared operational expenses in  
relation to the 91 Express Lanes. An amendment is needed to account for the  
reimbursement of anticipated shared operating costs incurred by the Riverside County  
Transportation Commission for the period July 1, 2025, through June 30, 2026.  
Recommendation(s)  
Authorize the Chief Executive Officer to negotiate and execute Amendment No. 10 to  
Agreement No. C-5-3828 between the Orange County Transportation Authority and the  
Riverside County Transportation Commission, in the amount of $584,138, for the  
reimbursement of shared operational expenses through June 30, 2026.  
Attachments:  
Staff Report  
Attachment A  
Attachment B  
6.  
Resolution to Establish the Orange County Transportation Authority General Fund  
Appropriations Limit for Fiscal Year 2025-26  
Sam Kaur/Andrew Oftelie  
Overview  
The State Constitution requires that each year the governing body of each local jurisdiction  
shall, by resolution, establish its appropriations limit for the following year pursuant to  
Article XIIIB.  
Recommendation(s)  
Adopt Orange County Transportation Authority Resolution No. 2025-031 to establish the  
Orange County Transportation Authority General Fund appropriations limit at $16,211,341,  
for fiscal year 2025-26.  
Attachments:  
Staff Report  
Attachment A  
Attachment B  
7.  
Resolution  
to  
Establish  
the  
Orange  
County  
Local  
Transportation  
Authority/Measure M2 Appropriations Limit for Fiscal Year 2025-26  
Sam Kaur/Andrew Oftelie  
Overview  
The State Constitution requires that each year the governing body of each local jurisdiction  
shall, by resolution, establish its appropriations limit for the following year pursuant to  
Article XIIIB.  
Recommendation(s)  
Adopt Orange County Local Transportation Authority/Measure M2 Resolution No.  
2025-030 to establish the Orange County Local Transportation Authority/Measure M2  
appropriations limit at $2,449,984,516, for fiscal year 2025-26.  
Attachments:  
Staff Report  
Attachment A  
Attachment B  
8.  
Annual Insurance Program Renewal  
Greg Bych/Maggie McJilton  
Overview  
The Orange County Transportation Authority holds an Excess Workers’ Compensation  
Insurance Policy with Safety National Insurance Company and a Property Insurance Policy  
with Zurich Insurance Company. The policies are scheduled to expire on June 30, 2025,  
and renewals are necessary to maintain coverage.  
Recommendation(s)  
A.  
Authorize the Chief Executive Officer to negotiate and execute Purchase Order No.  
A59005, in an amount not to exceed $716,580, to Marsh Risk and Insurance  
Services, Inc., to purchase excess workers’ compensation insurance on behalf of  
the Orange County Transportation Authority for the policy period of July 1, 2025, to  
June 30, 2026.  
B.  
Authorize the Chief Executive Officer to negotiate and execute Purchase Order No.  
A59025, in an amount not to exceed $1,200,000, to Marsh Risk and Insurance  
Services, Inc., to purchase property insurance on behalf of the Orange County  
Transportation Authority for the renewal of the coverage for the period of July 1,  
2025, to June 30, 2026.  
Attachments:  
Staff Report  
Regular Calendar  
9.  
405 Express Lanes Update for the Period Ending March 31, 2025  
Kirk Avila  
Overview  
The Orange County Transportation Authority oversees the operations of the 405 Express  
Lanes, which commenced operations on December 1, 2023. Over the last quarter, there  
were approximately 16.1 million transactions and 4.2 million trips generated on the 405  
Express Lanes. This report focuses on the operational and financial activities for the  
period ending March 31, 2025.  
Recommendation(s)  
Receive and file as an information item.  
Attachments:  
Staff Report  
Attachment A  
Attachment B  
Presentation  
10.  
Preview to the Public Hearing on Orange County Transportation Authority’s Fiscal  
Year 2025-26 Budget and Personnel and Salary Resolution  
Victor Velasquez/Andrew Oftelie  
Overview  
The Orange County Transportation Authority Fiscal Year 2025-26 Proposed Budget  
presents a balanced plan of sources and uses of funds while providing for the current and  
future transportation needs of Orange County. The Board of Directors may approve the  
Orange County Transportation Authority Fiscal Year 2025-26 Proposed Budget following  
the public hearing to be held at the Board of Directors’ meeting on June 9, 2025, at the  
following Board of Directors’ meeting on June 23, 2025, or in a special meeting convened  
at their discretion, on or before June 30, 2025. The Board of Directors is also asked to  
approve the Personnel and Salary Resolution as part of the budget approval process.  
Recommendation(s)  
A.  
Approve by Resolution the Orange County Transportation Authority’s Fiscal Year  
2025-26 Budget.  
B.  
C.  
Approve the Personnel and Salary Resolution for fiscal year 2025-26.  
Authorize the Chief Executive Officer, or his designee, to negotiate and execute the  
software and hardware licensing, maintenance, and emergency support purchase  
orders, and/or agreements.  
D.  
Approve the fiscal year 2025-26 Orange County Transportation Authority member  
agency contribution to the Southern California Regional Rail Authority operating  
subsidy, in an amount up to $51,972,543, contingent upon all other member  
agencies agreeing to their respective operating subsidy contributions. In addition,  
approve the capital and rehabilitation expenditure budgets contingent upon all  
member agencies’ approval of their respective capital and rehabilitation budgets.  
The Orange County Transportation Authority’s budget for capital expenditures is  
$3,084,444 and for rehabilitation expenditures is $32,455,508.  
Attachments:  
Staff Report  
Attachment A  
Attachment B  
Attachment C  
Attachment D  
Attachment E  
Presentation  
Handout  
Discussion Items  
11.  
12.  
13.  
14.  
Public Comments  
Chief Executive Officer's Report  
Committee Members' Reports  
Adjournment  
The next regularly scheduled meeting of this Committee will be held:  
10:30 a.m. on Wednesday, June 11, 2025  
OCTA Headquarters  
Board Room  
550 South Main Street  
Orange, California