Orange County Transportation Authority  
Finance and Administration Committee Agenda  
Wednesday, October 23, 2024 at 10:30 a.m.  
Board Room, 550 South Main Street, Orange, California  
Committee Members  
Michael Hennessey, Chair  
Patrick Harper, Vice Chair  
Jamey Federico  
Stephanie Klopfenstein  
Tam T. Nguyen  
Vicente Sarmiento  
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 listen to audio live streaming of the Board  
and 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 Federico  
Closed Session  
There are no Closed Session items scheduled.  
Special Calendar  
There are no Special Calendar matters.  
Consent Calendar (Items 1 through 9)  
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.  
1.  
Approval of Minutes  
Clerk of the Board  
Recommendation(s)  
Approve the minutes of the September 25, 2024 Finance and Administration Committee  
meeting.  
Attachments:  
Minutes  
2.  
Fiscal Year 2024-25 Internal Audit Plan, First Quarter Update  
Janet Sutter  
Overview  
The Orange County Transportation Authority Board of Directors adopted the Orange  
County Transportation Authority Internal Audit Department Fiscal Year 2024-25 Internal  
Audit Plan on July 22, 2024. This report provides an update of activities for the first quarter  
of the fiscal year.  
Recommendation(s)  
Receive and file the first quarter update to the Orange County Transportation Authority  
Internal Audit Department Fiscal Year 2024-25 Internal Audit Plan as an information item.  
Attachments:  
Staff Report  
Attachment A  
Attachment B  
Attachment C  
3.  
Federal Transit Administration Drug and Alcohol Compliance Audit  
Janet Sutter  
Overview  
The Federal Transit Administration has completed a Drug and Alcohol Compliance audit  
of the Orange County Transportation Authority and contractors Transdev, Keolis Transit  
America, and Cabco Yellow, Incorporated. Management has addressed all deficiencies,  
and the audit is now closed.  
Recommendation(s)  
Receive and file the Federal Transit Administration Drug and Alcohol Compliance Audit as  
an information item.  
Attachments:  
Staff Report  
Attachment A  
Attachment B  
4.  
Interstate 5 Improvement Project: Oso Parkway to Alicia Parkway Design and  
Construction Management, Internal Audit Report No. 25-501  
Serena Ng/Janet Sutter  
Overview  
The Internal Audit Department has completed an audit of the design and construction  
management contracts for the Oso Parkway to Alicia Parkway segment of the Interstate 5  
Improvement Project. Based on the audit, oversight controls are in place and operating  
effectively and contract compliance and invoice review controls are generally adequate;  
however, one recommendation was made to enforce the pre-approval requirement for  
other direct costs not included in the contract schedule.  
Recommendation(s)  
Direct staff to implement the recommendation provided in Interstate 5 Improvement  
Project: Oso Parkway to Alicia Parkway Design and Construction Management, Internal  
Audit Report No. 25-501.  
Attachments:  
Staff Report  
Attachment A  
5.  
Investment Manager Contracts, Internal Audit Report No. 25-504  
Gabriel Tang/Janet Sutter  
Overview  
The Internal Audit Department of the Orange County Transportation Authority has  
completed an audit of investment manager contracts. Based on the audit, oversight,  
contract compliance, and invoice review controls are generally adequate; however, two  
recommendations have been made to improve compliance with contract terms related to  
replacing key personnel and to improve the timeliness of invoice processing.  
Recommendation(s)  
Direct staff to implement two recommendations provided in Investment Manager  
Contracts, Internal Audit Report No. 25-504.  
Attachments:  
Staff Report  
Attachment A  
6.  
SB 1 (Chapter 5, Statutes of 2017) State of Good Repair Claims for Fiscal Year  
2024-25  
Sam Kaur/Andrew Oftelie  
Overview  
The Orange County Transportation Authority is eligible to receive funding from the SB 1  
State of Good Repair Program that is funded by the Transportation Improvement Fee on  
vehicle registrations. Funding recommendations for fiscal year 2024-25 were approved by  
the Board of Directors on August 12, 2024. Upon approval of the statewide list of fiscal  
year 2024-25 projects by the California Department of Transportation, the Orange County  
Transportation Authority must file claims on a quarterly basis to receive the funding.  
Recommendation(s)  
Authorize the filing of SB 1 State of Good Repair claims, in the amount of $7.084 million, or  
up to the actual allocation published by the State Controller’s Office, to fund capital projects  
approved by the Orange County Transportation Authority Board of Directors.  
Attachments:  
Staff Report  
7.  
State Transit Assistance Fund Claims for Fiscal Year 2024-25  
Sam Kaur/Andrew Oftelie  
Overview  
The Orange County Transit District is eligible to receive funding from the State Transit  
Assistance Fund for providing public transportation services throughout Orange County. To  
receive these funds, the Orange County Transit District, as the public transit and  
community transit services operator, must file claims with the Orange County  
Transportation Authority, the transportation planning agency for Orange County.  
Recommendation(s)  
Adopt Resolution No. 2024-080 to authorize the filing of State Transit Assistance Fund  
claims, in the amount of $50,464,493, or up to the actual allocation published by the State  
Controller’s Office, to support public transportation.  
Attachments:  
Staff Report  
Attachment A  
8.  
Orange County Transportation Authority Investment and Debt Programs Report -  
August 2024  
Robert Davis/Andrew Oftelie  
Overview  
The Orange County Transportation Authority has a comprehensive investment and debt  
program to fund its immediate and long-term cash flow demands. Each month, the  
Treasurer submits a report detailing investment allocation, performance, compliance,  
outstanding debt balances, and credit ratings for the Orange County Transportation  
Authority’s debt program. This report is for the month ending August 31, 2024. The report  
has been reviewed and is consistent with the investment practices contained in the  
investment policy.  
Recommendation(s)  
Receive and file as an information item.  
Attachments:  
Staff Report  
Attachment A  
Attachment B  
9.  
Fiscal Year 2023-24 Fourth Quarter Budget Status Report  
Victor Velasquez/Andrew Oftelie  
Overview  
Orange County Transportation Authority staff has implemented the fiscal year 2023-24  
budget. This report summarizes the material variances between the budget and actual  
revenues and expenses through the fourth quarter of fiscal year 2023-24.  
Recommendation(s)  
Receive and file as an information item.  
Attachments:  
Staff Report  
Attachment A  
Regular Calendar  
10.  
Excess Liability Insurance Renewal  
Greg Bych/Maggie McJilton  
Overview  
The Orange County Transportation Authority procured excess liability insurance  
continuously from 1991 through 2020. Beginning in December 2020, the Orange County  
Transportation Authority became fully self-insured and has maintained that self-insurance  
since then.  
Recommendation(s)  
A.  
Authorize the Chief Executive Officer to establish a $10 million self-insured retention  
for excess liability claims.  
B.  
Authorize the Chief Executive Officer to negotiate and execute Purchase Order No.  
A59005, in the amount not to exceed $960,000, to Marsh Risk and Insurance  
Services, Inc., to purchase a $5 million excess liability insurance policy on behalf of  
the Orange County Transportation Authority for the policy period of November 1,  
2024 to October 31, 2025.  
Attachments:  
Staff Report  
Presentation  
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, November 13, 2024  
OCTA Headquarters  
Board Room  
550 South Main Street  
Orange, California