Orange County Transportation Authority

Finance and Administration Committee Agenda

Wednesday, June 14, 2023 at 10:30 a.m.

Board Room, 550 South Main Street, Orange, California

Committee Members

Michael Hennessey, Chairman

Patrick Harper, Vice Chairman

Andrew Do

Jamey Federico

Brian Goodell

Steve Jones

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. Please

complete a speaker’s card and submit it to the Clerk of the Board or notify the Clerk of the Board

the item number on which you wish to speak. Speakers will be recognized by the Chairman at the

time the agenda item is to be considered. Comments shall be limited to three minutes.

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 Jones

Special Calendar

Taxable Sales Forecast - University of California, Los Angeles

Sam Kaur/Andrew Oftelie

Overview

Orange County Transportation Authority contracts with several economic specialists to

provide an annual 30-year taxable sales forecast for Measure M2. The latest forecasts

were received in Spring 2023. Jerry Nickelsburg, PhD, and William Yu, PhD, from

University of California at Los Angeles Anderson Forecast will provide an update on the

annual forecast and economic outlook for Orange County to the Finance and

Administration Committee.

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.

Approval of Minutes

Recommendation

Approve the May 24, 2023 minutes of the Finance and Administration Committee meeting.

Attachments:

Minutes

Lost and Found Operations, Internal Audit Report No. 23-513

Jonathan Thompson/Janet Sutter

Overview

The Internal Audit Department of the Orange County Transportation Authority has

completed an audit of lost and found operations. Based on the audit, controls are generally

adequate and operating; however, one recommendation has been made to improve

controls over handling and recording of cash and check deposits.

Recommendation

Direct staff to implement one recommendation provided in Lost and Found Operations,

Internal Audit Report No. 23-513.

Attachments:

Staff Report

Attachment A

Purchase

Verification

Kirk Avila

Order

for

91 Express

Lanes

Back-Office

System

Source

Code

Overview

In March 2022, Cofiroute USA, LLC deployed a new back-office system on the 91 Express

Lanes. As part of the contractual requirements, an agreement with an escrow agent is

required to hold the back-office system source code. To protect the investments the

Orange County Transportation Authority and the Riverside County Transportation

Commission have made to the back-office system, source code verification is being

requested for the items held in escrow and for future major functionality releases deposited

in escrow. A source code verification provides assurance that the material deposited in

escrow is correct and complete by ensuring that the deposit can be rebuilt into a working

application. Board of Directors’ approval is requested for NCC Group Escrow Associates,

LLC, to provide source code verifications for the 91 Express Lanes back-office system.

Recommendation

Authorize the Chief Executive Officer to negotiate and execute sole source Purchase

Order No. C32478 between the Orange County Transportation Authority and NCC Group

Escrow Associates, LLC, in the amount of $102,500, for verifications of the 91 Express

Lanes back-office system source code for a three-year and seven-month term.

Attachments:

Staff Report

91 Express Lanes Update for the Period Ending - March 31, 2023

Kirk Avila

Overview

The Orange County Transportation Authority has owned and managed the operations of

the 91 Express Lanes since January 2003.

Since that time, traffic volumes and toll

revenues have fluctuated with the changes in the economy and the added capacity to the

State Route 91 corridor. Over the last quarter, there were approximately 4.7 million trips

taken on the 91 Express Lanes in Orange County. This report focuses on the operational

and financial activities for the period ending March 31, 2023.

Recommendation

Receive and file as an information item.

Attachments:

Staff Report

Attachment A

Attachment B

Orange County Transportation Authority Investment and Debt Programs Report -

April 2023

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 April 30, 2023.

Recommendation

Receive and file as an information item.

Attachments:

Staff Report

Attachment A

Attachment B

Environmental Mitigation Program Endowment Fund Investment Report for March

31, 2023

Robert Davis/Andrew Oftelie

Overview

The Orange County Transportation Authority has developed

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

Receive and file as an information item.

Attachments:

Cooperative Agreement with the City of Laguna Beach for Federal Transit

Administration, State Transit Administration, SB 1 (Chapter 5, Statutes of 2017)

State of Good Repair, and Cap and Trade Funds for Public Transit Services

Sam Kaur/Andrew Oftelie

Overview

The City of Laguna Beach and its municipally owned Laguna Beach Municipal Transit

Lines are eligible to receive funding from the Federal Transit Administration Section 5307

Urbanized Area Formula Program Funds, Federal Transit Administration Section 5339

Bus and Bus Facilities Program funds, State Transit Assistance funds, State of Good

Repair funds provided through SB 1 and Cap and Trade funds. Board of Directors’

approval is requested to execute a new cooperative agreement to provide the City of

Laguna Beach with additional Federal Transit Administration, State Transit Assistance,

SB 1 State of Good Repair and Cap and Trade funds for the next five fiscal years

beginning fiscal year 2023-24 through fiscal year 2027-28.

Recommendation

Authorize the Orange County Transportation Authority Chief Executive Officer to negotiate

and execute Cooperative Agreement No. C-3-2477 between the Orange County

Transportation Authority and the City of Laguna Beach, for a maximum cumulative amount

not to exceed $1,743,712 for Federal Transit Administration funding, $2,225,913 for State

Transit Assistance funding, including SB 1 augmentation, $299,011 for State of Good

Repair funds provided through SB 1, and $174,524 for Cap and Trade funds, totaling

$4,443,160 for the next five fiscal years commencing fiscal year 2023-24 through fiscal

year 2027-28, for providing public transit services and operating assistance.

Attachments:

Staff Report

Regular Calendar

There are no Regular Calendar items scheduled.

Discussion Items

Public Comments

10.

11.

12.

Chief Executive Officer's Report

Committee Members' Reports

Closed Session

There are no Closed Session items scheduled.