Orange County Transportation Authority  
Finance and Administration Committee Agenda  
Wednesday, September 25, 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 Harper  
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 August 14, 2024 Finance and Administration Committee  
meeting.  
Attachments:  
Minutes  
2.  
Agreement No. C-4-1816 with Woodruff & Smart for Legal Services, Internal Audit  
Report No. 25-503  
Gabriel Tang/Janet Sutter  
Overview  
The Internal Audit Department of the Orange County Transportation Authority has  
completed an audit of Agreement No. C-4-1816 with Woodruff & Smart, for legal services.  
Based on the audit, Woodruff & Smart complies with the terms of the agreement and  
invoice review controls are generally adequate; however, one recommendation was made  
to enhance controls to include verification that pre-approval of legal subcontractors is  
obtained.  
Recommendation(s)  
Direct staff to implement one recommendation provided in Agreement No. C-4-1816 with  
Woodruff & Smart for Legal Services, Internal Audit Report No. 25-503.  
Attachments:  
Staff Report  
Attachment A  
3.  
Investments: Compliance, Controls, and Reporting, January 1 through June 30,  
2024, Internal Audit Report No. 25-502  
Jonathan Thompson/Janet Sutter  
Overview  
The Internal Audit Department has completed an audit of investments for the period  
January 1 through June 30, 2024. Based on the audit, the Orange County Transportation  
Authority complied with its debt, investment, and reporting policies and procedures;  
however, the Internal Audit Department made two recommendations to periodically update  
daily revenue estimates and to update the Treasury/Public Finance Debt and Investment  
Management Manual to reflect changes in procedures.  
Recommendation(s)  
Direct staff to implement two recommendations provided in Investments: Compliance,  
Controls, and Reporting, January 1 through June 30, 2024, Internal Audit Report No.  
25-502.  
Attachments:  
Staff Report  
Attachment A  
4.  
91 Express Lanes Update for the Period Ending June 30, 2024  
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, approximately 5.6 million trips were taken on the 91 Express  
Lanes in Orange County. This report focuses on the operational and financial activities for  
the period ending June 30, 2024  
Recommendation  
Receive and file as an information item.  
Attachments:  
Staff Report  
Attachment A  
Attachment B  
5.  
Amendments  
to  
the  
Cooperative  
User  
Fee  
Processing  
Agreement  
for  
Interoperable Toll Processing and Revenue Collection  
Kirk Avila  
Overview  
The Orange County Transportation Authority entered into cooperative user fee processing  
agreements with other California toll agencies to facilitate the interoperability process for  
toll collection. The agreements established a reciprocal arrangement for the exchange of  
data and establishes a settlement process for the exchange of funds between the toll  
agencies. Board of Directors’ approval is requested to amend the cooperative  
agreements to incorporate the 405 Express Lanes into the cooperative agreements.  
Recommendation(s)  
A.  
Authorize the Chief Executive Officer to negotiate and execute Amendment No. 1 to  
Cooperative Agreement No. C-6-1532 between the Orange County Transportation  
Authority and Bay Area Toll Authority to incorporate the 405 Express Lanes into the  
cooperative agreement.  
B.  
Authorize the Chief Executive Officer to negotiate and execute Amendment No. 7 to  
Cooperative Agreement No. C-4-1113 between the Orange County Transportation  
Authority and San Diego Association of Governments to incorporate the 405  
Express Lanes into the cooperative agreement.  
Attachments:  
Staff Report  
Attachment A  
Attachment B  
6.  
Fiscal Year 2023-24 Fourth Quarter Grant Reimbursement Status Report  
Sam Kaur/Andrew Oftelie  
Overview  
The Quarterly Grant Reimbursement Status Report summarizes grant activities for the  
Orange County Transportation Authority Board of Directors. This report focuses on activity  
for the fourth quarter of fiscal year 2023-24, covering April through June 2024.  
Recommendation(s)  
Receive and file as an information item.  
Attachments:  
Staff Report  
Attachment A  
Attachment B  
Attachment C  
Attachment D  
7.  
Orange County Transportation Authority Investment and Debt Programs Report -  
July 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 July 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  
8.  
Environmental Mitigation Program Endowment Fund Investment Report for June  
30, 2024  
Robert Davis/Andrew Oftelie  
Overview  
The Orange County Transportation Authority has developed  
a
Natural Community  
Conservation Plan/Habitat Conservation Plan, acquired conservation properties, and  
funded habitat restoration projects to mitigate the impacts of Measure M2 freeway  
programs. The California Community Foundation manages the non-wasting endowment  
required to fund the long-term management of the conservation properties. Each quarter,  
the California Community Foundation publishes a comprehensive report detailing the  
composition of the pool and its performance.  
Recommendation(s)  
Receive and file as information item.  
Attachments:  
Staff Report  
Attachment A  
Attachment B  
Attachment C  
9.  
Annual New York Credit Update - July 2024  
Robert Davis/Andrew Oftelie  
Overview  
Since the early 1990s, the Orange County Transportation Authority has maintained an  
active investor relations program. As part of this program, each year the Orange County  
Transportation Authority conducts a series of meetings with the rating agencies and  
financial institutions in New York, New York. This year, the meetings took place from  
Wednesday, July 31, 2024, to Thursday, August 1, 2024.  
Recommendation(s)  
Receive and file as an information item.  
Attachments:  
Staff Report  
Attachment A  
Attachment B  
Regular Calendar  
10.  
2024 Measure M2 Sales Tax Forecast  
Sam Kaur/Andrew Oftelie  
Overview  
The Orange County Transportation Authority contracts with MuniServices, LLC and three  
universities to forecast Measure M2 taxable sales. MuniServices, LLC and the three  
universities have each provided updated forecasts and staff have incorporated the new  
information into the annual update for the long-range forecast of Measure M2 taxable  
sales.  
Recommendation(s)  
Receive and file as an information item.  
Attachments:  
Staff Report  
Attachment A  
11.  
Potential Refunding of the Measure M2 Sales Tax Revenue Bonds, Series 2010A  
(Taxable Build America Bonds)  
Robert Davis/Andrew Oftelie  
Overview  
The Orange County Local Transportation Authority currently has $250,000,000 in  
outstanding Measure M2 Sales Tax Revenue Bonds, Series 2010A (Taxable Build  
America Bonds). Due to the unique economics and associated risks of these bonds, staff  
is requesting approval to explore the potential refunding of the Series 2010-A Bonds.  
Recommendation(s)  
A.  
Direct staff to pursue the issuance and sale of bonds to refund the Measure M2  
Sales Tax Revenue Bonds, Series 2010A (Taxable Build America Bonds).  
B.  
Authorize an exception to the three percent savings requirement, in accordance with  
the debt policy, and direct staff to proceed with the refunding if the savings are at  
least net neutral or greater.  
C.  
Direct staff to return to the Board of Directors for approval of the draft financing  
documents required to issue and close the transaction.  
Attachments:  
Staff Report  
Discussion Items  
12.  
13.  
14.  
15.  
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, October 23, 2024  
OCTA Headquarters  
Board Room  
550 South Main Street  
Orange, California