Orange County Transportation Authority  
Finance and Administration Committee Agenda  
Wednesday, April 24, 2024 at 10:30 a.m.  
Board Room, 550 South Main Street, Orange, California  
Committee Members  
Michael Hennessey, Chair  
Patrick Harper, Vice Chair  
Andrew Do  
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  
1.  
Proposed Fiscal Year 2024-25 Southern California Regional Rail Authority Budget  
Megan Taylor/Johnny Dunning, Jr.  
Overview  
Metrolink staff will present an overview (with presentation) of the draft Southern California  
Regional Rail Authority Fiscal Year 2024-25 Budget, including the Orange County  
Transportation Authority's proposed share of operating, rehabilitation, and capital  
expenses for Metrolink commuter rail service.  
Attachments:  
Presentation  
Consent Calendar (Items 2 through 6)  
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.  
2.  
Approval of Minutes  
Clerk of the Board  
Recommendation  
Approve the minutes of the April 10, 2024 Finance and Administration Committee  
meeting.  
Attachments:  
Minutes  
3.  
Fiscal Year 2023-24 Internal Audit Plan, Third Quarter Update  
Janet Sutter  
Overview  
The Orange County Transportation Authority Board of Directors adopted the Orange  
County Transportation Authority Internal Audit Department Fiscal Year 2023-24 Internal  
Audit Plan on July 24, 2023. This report provides an update on activities for the third  
quarter of the fiscal year.  
Recommendation  
Receive and file the third quarter update to the Orange County Transportation Authority  
Internal Audit Department Fiscal Year 2023-24 Internal Audit Plan as an information item.  
Attachments:  
Staff Report  
Attachment A  
Attachment B  
Attachment C  
4.  
Review of Interstate 405 Improvement Project: Design-Build Contract, Internal  
Audit Report No. 24-507  
Serena Ng/Janet Sutter  
Overview  
The Internal Audit Department of the Orange County Transportation Authority has  
completed an audit of the design-build contract for the Interstate 405 Improvement Project.  
Based on the audit, oversight and invoice review controls were in place and invoices  
complied with contract provisions. One recommendation was made to improve  
documentation in the Orange County Transportation Authority’s files.  
Recommendation  
Direct staff to implement the recommendation provided in the Review of Interstate 405  
Improvement Project: Design-Build Contract, Internal Audit Report No. 24-507.  
Attachments:  
Staff Report  
Attachment A  
5.  
Approval of the Fiscal Year 2024-25 Local Transportation Fund Claim for Laguna  
Beach Public Transportation Services  
Sam Kaur/Andrew Oftelie  
Overview  
The Laguna Beach Municipal Transit Lines, a department within the City of Laguna Beach,  
is eligible to receive funding from the Local Transportation Fund in Orange County for  
providing public transportation services throughout the city. To receive the funds, the  
Laguna Beach Municipal Transit Lines must file a claim against the Local Transportation  
Fund with the Orange County Transportation Authority.  
Recommendations  
A.  
Approve the Laguna Beach Municipal Transit Lines Fiscal Year 2024-25 Local  
Transportation Fund claim for public transportation services, in the amount of  
$1,532,505.  
B.  
Authorize the Chief Executive Officer of the Orange County Transportation Authority  
to  
issue  
allocation/disbursement  
instructions  
to  
the  
Orange  
County  
Auditor-Controller in the amount of the claim.  
Attachments:  
Staff Report  
6.  
Approval of the Fiscal Year 2024-25 Local Transportation Fund Claim for Public  
Transportation and Community Transit Services  
Sam Kaur/Andrew Oftelie  
Overview  
The Orange County Transit District is eligible to receive funding from the Local  
Transportation Fund for providing public transportation and community transit services  
throughout Orange County. To receive the funds, the Orange County Transit District must  
file a claim against the Local Transportation Fund with the Orange County Transportation  
Authority.  
Recommendations  
A.  
Approve the Orange County Transit District Fiscal Year 2024-25 Local  
Transportation Fund claim for public transportation services in the amount of  
$212,667,523.41, and for community transit services in the amount of  
$11,273,685.71 for a total claim amount of $223,941,209.12.  
B.  
Authorize the Chief Executive Officer to issue allocation/disbursement instructions  
to the Orange County Auditor-Controller in the full amount of the claims.  
Attachments:  
Staff Report  
Regular Calendar  
7.  
Orange County Local Transportation Authority Report on Compliance with the  
Measure M2 Ordinance, Year Ended June 30, 2023  
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, 2023. Crowe LLP 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, 2023. In addition,  
no deficiencies in internal control over compliance were reported.  
Recommendation  
Receive and file the Independent Auditor’s Report on Compliance with the Measure M2  
Ordinance and Report on Internal Control over Compliance for the year ended June 30,  
2023, as an information item.  
Attachments:  
Staff Report  
Attachment A  
8.  
Orange County Local Transportation Authority Measure M2 Maintenance of Effort,  
Agreed-Upon Procedures Report, City of Cypress, Year Ended June 30, 2023  
Janet Sutter  
Overview  
BCA Watson Rice LLP, an independent accounting firm, has applied  
agreed-upon procedures related to Measure M2 maintenance of effort expenditures by the  
City of Cypress for the fiscal year ended June 30, 2023. Based on the procedures  
performed, the City of Cypress spent sufficient funds to meet the required minimum  
expenditures as outlined in a settlement agreement between the City of Cypress and the  
Orange County Transportation Authority.  
Recommendation  
Direct staff to develop recommendation(s) for Board of Directors’ action related to the  
status of the City of Cypress’ Measure M2 eligibility.  
Attachments:  
Staff Report  
Attachment A  
9.  
Orange  
County  
Local  
Transportation  
Authority  
Measure  
M2 Agreed-Upon  
Procedures Reports, Year Ended June 30, 2023  
Janet Sutter  
Overview  
Crowe LLP, an independent accounting firm, has applied agreed-upon procedures related  
to Measure M2 Local Fair Share funds provided to seven cities, and Senior Mobility  
Program funds provided to six cities, for the fiscal year ended June 30, 2023. Local Fair  
Share program reports include observations of indirect charges lacking a reasonable  
methodology, indirect charges allocated based on an aged allocation plan, and reporting  
errors. Senior Mobility Program audits include observations relating to failure to meet the  
program match requirement, late submission of a monthly report, reporting errors, failure to  
allocate interest, and third-party contract language.  
Recommendations  
A.  
Direct staff to monitor implementation of corrective actions by cities.  
B.  
Direct staff to review with legal counsel the results of agreed-upon procedures  
applied to the cities of Buena Park and Orange and develop recommendations for  
Board of Directors’ consideration to address the exceptions related to Local Fair  
Share expenditures by the City of Buena Park and maintenance of effort  
expenditures by the City of Orange.  
C.  
Direct staff to withhold funds from a future payment to the City of Mission Viejo to  
address the shortfall in match funds in accordance with the Senior Mobility Program  
Guidelines.  
Attachments:  
Staff Report  
Attachment A  
Attachment B  
Attachment C  
Attachment D  
10.  
Orange County Transportation Authority Fiscal Year 2024-25 Budget Workshop  
Preview  
Victor Velasquez/Andrew Oftelie  
Overview  
The Orange County Transportation Authority is developing the fiscal year 2024-25  
proposed budget, which identifies available revenues and costs associated with providing  
transportation services and programs for Orange County.  
The fiscal year 2024-25  
proposed budget will be reviewed in detail during an informal workshop following the May  
13, 2024, Orange County Transportation Authority Board of Directors meeting.  
Recommendation  
Review the fiscal year 2024-25 proposed budget in a workshop setting following the  
regularly scheduled Orange County Transportation Authority Board of Directors meeting on  
May 13, 2024.  
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, May 22, 2024  
OCTA Headquarters - Board Room  
550 South Main Street  
Orange, California