Orange County Transportation Authority

Executive Committee Agenda

Monday, May 6, 2024 at 9:00 a.m.

Board Room, 550 South Main Street, Orange, California

Committee Members

Tam T. Nguyen, Chair

Doug Chaffee, Vice Chair

Andrew Do, Regional Transportation Planning, Chair

Michael Hennessey, Finance & Administration, Chair

Fred Jung, Transit Committee Chair

Donald P. Wagner, Legislative & Communications, Chair

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 Jung

Closed Session

Overview

Pursuant to Government Code Section 54956.9(d) - Conference with General Counsel -

Potential Litigation - one item.

Special Calendar

There are no Special Calendar matters.

Consent Calendar (Item 2)

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.

Approval of Minutes

Clerk of the Board

Recommendation(s)

Approve the minutes of the April 1, 2024 Executive Committee meeting.

Attachments:

Minutes

Regular Calendar

Third Quarter Fiscal Year 2023-24 Capital Action Plan Performance Metrics

James G. Beil

Overview

Staff has prepared a quarterly progress report on capital project delivery covering the

period of January 2024 through March 2024, for review by the Orange County

Transportation Authority Board of Directors. This report highlights the Capital Action Plan

for project delivery, which is used as a performance metric to assess delivery progress on

highway and transit capital improvement projects.

Recommendation(s)

Receive and file as an information item.

Attachments:

Staff Report

Attachment A

Attachment B

Measure M2 Eligibility for the City of Cypress

Adriann Cardoso/Kia Mortazavi

Overview

In 2023, the Orange County Transportation Authority Board of Directors found the City of

Cypress ineligible to receive Measure M2 net revenues due to an insufficient investment of

discretionary funds in fiscal year 2021-22 for streets and roads purposes to meet the

Measure M2 maintenance of effort requirement. A recent accounting of the City of

Cypress’ Measure M2 maintenance of effort expenditures for fiscal year 2022-23 found

that the City of Cypress has met its minimum maintenance of effort expenditure

requirement, including the shortfall amount. The Orange County Transportation Authority

Board of Directors is being asked to consider reinstating the City of Cypress’ Measure M2

eligibility status.

Recommendation(s)

Authorize the Chief Executive Officer to negotiate, execute, and amend the

settlement agreement with the City of Cypress to reduce the term to deliver the

maintenance of effort requirement to one year and remove an audit requirement for

fiscal year 2023-24.

Approve the City of Cypress eligible to receive Measure M2 net revenues upon

execution of the amended settlement agreement.

Direct staff to reinitiate payments to the City of Cypress for Measure M2 net

revenues, which were held during its period of ineligibility (less fiscal year 2022-23

audit costs) within ten days of execution of the amended settlement agreement.

Attachments:

Staff Report

Attachment A

Measure M2 Eligibility for the City of Orange

Adriann Cardoso/Kia Mortazavi

Overview

The Orange County Transportation Authority’s Internal Auditor has released the results of

an independent auditor’s report of the City of Orange’s compliance with the Measure M2

eligibility requirements for fiscal year 2022-23. The independent auditor’s report found the

City of Orange lacked adequate documentation to support whether it had spent sufficient

discretionary funds on streets and road purposes to meet the maintenance of effort

requirement prescribed in the Measure M2 Ordinance. Based on this information,

recommendations related the City of Orange eligibility and compliance with the Measure

M2 Ordinance are presented.

Recommendation(s)

Find the City of Orange an ineligible jurisdiction to receive or apply for net Measure

M2 revenues.

Suspend net Measure M2 revenue payments to the City of Orange until the City of

Orange can demonstrate compliance with Measure M2 eligibility requirements and

the Board of Directors acts to find the City of Orange an eligible jurisdiction.

Require the City of Orange to demonstrate supplemental investment of

discretionary transportation funds equal to the amount of discretionary investment

that was short of the maintenance of effort benchmark in the fiscal year 2022-23

(approximately $1.12 million) as a condition of accessing suspended funds.

Authorize the Internal Auditor to engage independent auditing services to apply

agreed-upon procedures to assess the City of Orange’s compliance with

maintenance of effort expenditures and authorize staff to deduct audit costs from

any future net Measure M2 payments to the City of Orange.

Authorize the Chief Executive Officer to negotiate and execute a settlement

agreement with the City of Orange to correct and remedy the fiscal year 2022-23

audit issues and formalize required actions to become an eligible jurisdiction.

Attachments:

Staff Report

Attachment A

Measure M2 Eligibility for the City of Buena Park

Francesca Ching/Kia Mortazavi

Overview

The Orange County Transportation Authority’s Internal Auditor issued results of an

independent auditor’s report related to the City of Buena Park’s compliance with the

Measure M2 requirements for fiscal year 2022-23. The independent auditor’s report found

that the City of Buena Park could not sufficiently support their use of Measure M2 Local

Fair Share funds related to indirect labor charges thereby resulting in the use of the funds

being disallowed. Based on this information, recommendations to address the

independent auditor’s report finding are presented.

Recommendation(s)

Seek reimbursement of $387,576 from the City of Buena Park and find the City of

Buena Park ineligible to receive Measure M2 net revenues for five years pursuant to

Section 10.4 of Ordinance No. 3.

Authorize the Internal Auditor to engage independent auditing services to apply

agreed-upon procedures to review the City of Buena Park’s Measure M2 Local Fair

Share program and other expenditures for fiscal year 2023-24, fiscal year 2024-25,

fiscal year 2025-26, fiscal year 2026-27, and fiscal year 2027-28 to enable the City

of Buena Park to reestablish eligibility and authorize staff to deduct the review costs

from any future net Measure M2 payments to the City of Buena Park.

Authorize the Chief Executive Officer to negotiate and execute a settlement

agreement with the City of Buena Park to formalize the required actions to

reestablish eligibility and other terms.

Attachments:

Staff Report

Attachment A

Attachment B

Discussion Items

Public Comments

Chief Executive Officer's Report

Committee Members' Reports

10.

Adjournment

The next regularly scheduled meeting of this Committee will be held:

9:00 a.m. on Monday, June 3, 2024

OCTA Headquarters

550 South Main Street, Orange, California