Orange County Transportation Authority  
Finance and Administration Committee Agenda  
Thursday, May 21, 2026 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 Go  
Closed Session  
There are no Closed Session items scheduled.  
Special Calendar  
There are no Special Calendar matters.  
Consent Calendar (Items 1 through 12)  
1.  
Approval of Minutes  
Recommendation(s)  
Approve the minutes of the April 16, 2026 Finance and Administration Committee  
meeting.  
Attachments:  
Minutes  
2.  
Investments: Monthly Reporting July 1 through December 31, 2025, Internal Audit  
Report No. 26-510  
Jonathan Thompson/Janet Sutter  
Overview  
The Internal Audit Department has completed an audit of investment reporting for the  
period July 1 through December 31, 2025. Based on the audit, the Orange County  
Transportation Authority complied with its investment reporting policies and procedures,  
and reported investments comply with the Investment Policy; however, the Internal Audit  
Department made two recommendations related to the timeliness of the Investment and  
Debt Programs Reports’ review and the presentation of Investment and Debt Programs  
Reports’ schedules.  
Recommendation(s)  
Direct staff to implement two recommendations provided in Investments: Monthly  
Reporting, July 1 through December 31, 2025, Internal Audit Report No. 26-510.  
Attachments:  
Staff Report  
Attachment  
3.  
Independent Accountants’ Report on Applying Agreed-Upon Procedures, City of  
Buena Park  
Janet Sutter  
Overview  
Crowe LLP, an independent accounting firm, has applied agreed-upon procedures related  
to a settlement agreement between the City of Buena Park and the Orange County  
Transportation Authority. Based on the procedures performed, the City of Buena Park  
obtained an unmodified opinion on its Annual Comprehensive Financial Report for the year  
ended 2025, spent sufficient funds to meet the required minimum maintenance of effort,  
and its Local Fair Share expenditures were allowable per the Measure M2 Ordinance.  
Auditors identified expenditures related to two projects that were not listed on the City of  
Buena Park’s Seven-Year Capital Improvement Program Report; however, a revised  
report was prepared during the review.  
Recommendation(s)  
Receive and file as an information item.  
Attachments:  
Staff Report  
Attachment A  
4.  
Independent Accountants’ Report on Applying Agreed-Upon Procedures, City of  
Huntington Beach  
Janet Sutter  
Overview  
Crowe LLP, an independent accounting firm, has applied agreed-upon procedures related  
to a settlement agreement between the City of Huntington Beach and the Orange County  
Transportation Authority. Based on the procedures performed, the City of Huntington  
Beach obtained an unmodified (clean) opinion on its Annual Comprehensive Financial  
Report for the year ended 2024, spent sufficient funds to meet required minimum  
maintenance of effort expenditures, and its Local Fair Share expenditures were allowable  
per the Measure M2 Ordinance.  
Recommendation(s)  
Direct staff to monitor to ensure submission of an updated Fiscal Year 2024-25  
Expenditure Report from the City of Huntington Beach.  
Attachments:  
Staff Report  
Attachment A  
5.  
Orange  
County  
Local  
Transportation  
Authority  
Measure  
M2 Agreed-Upon  
Procedures Reports, Year Ended June 30, 2025  
Janet Sutter  
Overview  
Crowe LLP, an independent accounting firm, has applied agreed-upon procedures related  
to Measure M2 Local Fair Share funds provided to nine cities and Senior Non-Emergency  
Medical Transportation funds provided to the County of Orange for the fiscal year ended  
June 30, 2025. Local Fair Share reports include observations of disallowed maintenance  
of effort expenditures, misreporting of direct and indirect costs, expenditure report errors,  
and incomplete Capital Improvement Program reports. The County of Orange Senior  
Non-Emergency Medical Transportation program report included no observations.  
Recommendation(s)  
Direct staff to monitor implementation of corrective actions by cities, as applicable.  
Attachments:  
Staff Report  
Attachment A  
Attachment B  
Attachment C  
6.  
Orange County Local Transportation Authority Report on Compliance with the  
Measure M2 Ordinance, Year Ended June 30, 2025  
Janet Sutter  
Overview  
Crowe LLP, an independent accounting firm, has issued results of its audit of the Orange  
County Local Transportation Authority’s compliance with the Measure M2 Ordinance for  
the year ended June 30, 2025. The auditors found that the Orange County Local  
Transportation Authority complied, in all material respects, with the compliance  
requirements of the Measure M2 Ordinance for the year ended June 30, 2025. In addition,  
no reportable deficiencies in internal control over compliance were identified.  
Recommendation(s)  
Receive and file as an information item.  
Attachments:  
Staff Report  
Attachment A  
7.  
Audit of Toll Lanes Integrator System  
Ricco Bonelli/Janet Sutter  
Overview  
The Internal Audit Department of the Orange County Transportation Authority has  
completed an audit of oversight, contract compliance, and invoice review controls related  
to the contract with Kapsch Trafficom USA, Incorporated, for provision of toll lanes  
integrator systems. Based on the audit, management should implement controls to ensure  
contract terms are enforced, damages and fee adjustments are applied, work is not  
authorized until applicable amendments are executed, and invoice packages are  
complete.  
Recommendation(s)  
Direct staff to implement four recommendations provided in the Audit of Toll Lanes  
Integrator System, Internal Audit Report No. 26-501.  
Attachments:  
Staff Report  
Attachment A  
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, a Property Insurance Policy with  
Zurich Insurance Company, and express lanes property insurance with Zurich Insurance  
Company, Munich Re Insurance, and AIG Specialty Insurance Company. The policies are  
scheduled to expire on June 30, 2026, and renewals are necessary to maintain coverage.  
Recommendations  
A.  
Authorize the Chief Executive Officer to negotiate and execute Purchase Order  
No. C255099, in an amount not-to-exceed $746,148, 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, 2026, to June 30, 2027.  
B.  
Authorize the Chief Executive Officer to negotiate and execute Purchase Order  
No. C255098, in an amount not-to-exceed $1,300,000, to Marsh Risk and  
Insurance Services, Inc., to purchase property insurance on behalf of the Orange  
County Transportation Authority for the policy period of July 1, 2026, to June 30,  
2027.  
C.  
D.  
Authorize the Chief Executive Officer to negotiate and execute Purchase Order  
No. C255100, in an amount not-to-exceed $600,000, to Marsh Risk and  
Insurance Services, Inc., to purchase the 91 and 405 Express Lanes’ property  
and flood insurance on behalf of the Orange County Transportation Authority for  
the policy period of July 1, 2026, to June 30, 2027.  
Authorize the Chief Executive Officer to remain fully self-insured for general  
liability exposures and maintain a minimum liability reserve of $31.6 million as  
directed by the Board in June 2025, for the policy period of July 1, 2026, to June  
30, 2027.  
Attachments:  
Staff Report  
9.  
Resolution to Establish the Orange County Transportation Authority General Fund  
Appropriations Limit for Fiscal Year 2026-27  
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. 2026-019 to establish the  
Orange County Transportation Authority General Fund appropriations limit at $16,950,578,  
for fiscal year 2026-27.  
Attachments:  
Staff Report  
Attachment A  
Attachment B  
10.  
Resolution  
to  
Establish  
the  
Orange  
County  
Local  
Transportation  
Authority/Measure M2 Appropriations Limit for Fiscal Year 2026-27  
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.  
2026-020 to establish the Orange County Local Transportation Authority/Measure M2  
appropriations limit at $2,561,703,810, for fiscal year 2026-27.  
Attachments:  
Staff Report  
Attachment A  
Attachment B  
11.  
Orange County Transportation Authority Investment and Debt Programs Report -  
March 2026  
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 March 31, 2026. 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  
12.  
Annual Update to Investment Policy  
Robert Davis/Andrew Oftelie  
Overview  
The Treasurer is presenting the Orange County Transportation Authority’s Proposed Fiscal  
Year 2026-27 Investment Policy. The governing body of a local agency is required to  
annually renew the delegation of authority for the Treasurer to invest, reinvest, purchase,  
exchange, sell, or manage public funds for a period of one year. Additionally, and as  
recommended under California Government Code Section 53646(a)(2), the Orange  
County Transportation Authority is submitting its Proposed Fiscal Year 2026-27 Investment  
Policy to be reviewed at a public meeting.  
Recommendation(s)  
A.  
Adopt the Fiscal Year 2026-27 Investment Policy, effective July 1, 2026.  
B.  
Authorize the Treasurer to invest, reinvest, purchase, exchange, sell, and manage  
Orange County Transportation Authority funds during fiscal year 2026-27.  
Attachments:  
Staff Report  
Attachment A  
Attachment B  
Regular Calendar  
13.  
91 Express  
Lanes  
Back-Office  
System  
and  
Customer  
Service  
Center  
Consolidation with the 15 Express Lanes  
Anthony Rodriguez/Kirk Avila  
Overview  
In October 2019, the Orange County Transportation Authority Board of Directors awarded  
an agreement to Cofiroute USA, LLC, for the back-office system and customer service  
center operations for the 91 Express Lanes in Orange and Riverside counties. The initial  
term of the agreement ends in January 2027. In August 2025, staff received direction from  
the Finance and Administration Committee to explore an option which would consolidate  
the 15 and 91 Express Lanes operations. Staff has evaluated potential options for the  
post-2027 environment. Benefits, estimated costs, and recommendations are provided for  
Board of Directors’ review and consideration.  
Recommendation(s)  
A.  
Authorize the consolidation of the 15 and 91 Express Lanes back-office system and  
customer service center operations with Kapsch TrafficCom USA, Inc., the vendor  
currently providing back-office system and customer service center operations for  
the Riverside County Transportation Commission.  
B.  
Authorize the Chief Executive Officer to negotiate and execute Agreement No.  
C255087 with the Riverside County Transportation Commission and Kapsch  
TrafficCom USA, Inc., a three-party agreement, in a not-to-exceed amount of  
$126,372,484, to provide back-office system and customer service center  
operations for the 15 and 91 Express Lanes.  
C.  
Authorize the Chief Executive Officer to negotiate and execute the Amended and  
Restated Cooperative Agreement No. C-1-3190 for express lanes between the  
Riverside  
County  
Transportation  
Commission  
and  
the  
Orange  
County  
Transportation Authority.  
Attachments:  
Staff Report  
Attachment A  
Attachment B  
Presentation  
14.  
Preview to the Public Hearing on Orange County Transportation Authority’s Fiscal  
Year 2026-27 Budget and Personnel and Salary Resolution  
Victor Velasquez/Andrew Oftelie  
Overview  
The Orange County Transportation Authority Fiscal Year 2026-27 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 proposed budget continues to  
strengthen the Orange County Transportation Authority’s long-term financial sustainability  
by maintaining a structurally balanced plan with no unplanned use of reserves, while  
advancing the Board of Director’s Strategic Initiatives and delivering reliable transportation  
services.  
The Board of Directors may approve the Orange County Transportation Authority Fiscal  
Year 2026-27 Proposed Budget following the public hearing to be held at the Board of  
Directors’ meeting on June 8, 2026, at the following Board of Directors meeting on June  
22, 2026, or in a special meeting convened at their discretion, on or before June 30, 2026.  
The Board of Directors are 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 Fiscal Year  
2026-27 Budget.  
B.  
C.  
Approve the Personnel and Salary Resolution for fiscal year 2026-27.  
Approve the update to the Policy for Compensation, Benefits, Reimbursement of  
Expenses and Mandatory Training for Members of the Board of Directors.  
D.  
E.  
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.  
Approve up to $14.5 million for the fiscal year 2026-27 Orange County  
Transportation Authority contribution to the Southern California Regional Rail  
Authority operating subsidy to support Metrolink service through the first quarter of  
the fiscal year. Funding for operations, as well as capital and rehabilitation  
expenditures for the remainder of the fiscal year, is contingent upon a formal budget  
request from Metrolink and approval by the Orange County Transportation Authority  
Board of Directors, and concurrence from all member agencies.  
Attachments:  
Staff Report  
Attachment A  
Attachment B  
Attachment C  
Attachment D  
Presentation  
Attachment E  
Handout  
Discussion Items  
15.  
16.  
17.  
18.  
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 Thursday, June 18, 2026  
OCTA Headquarters  
550 South Main Street  
Orange, California