HomeMy WebLinkAbout15 - Appointments to Transportation Corridor SystemCITY OF NEWPORT BEACH
CITY COUNCIL STAFF REPORT
Agenda Item No. 15
June 26, 2007
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: City Clerk's Department
LaVonne M. Harkless, City Clerk
949 -644 -3005
Iarkless@city.newport- beach.ca.us
SUBJECT: APPOINTMENTS BY THE MAYOR TO THE TRANSPORTATION
CORRIDOR SYSTEM
RECOMMENDATION:
Confirm the Mayor's appointment of Council Member Webb (representative) and
Council Member Daigle (alternate) to the Transportation Corridor System.
BACKGROUND:
At the City Council meeting of November 26, 2002, the City Council unanimously
approved amendments to the San Joaquin Hills Transportation Corridor Agency's
(SJHTCA) Joint Powers Agreement. In addition to other things, this action was to have
resulted in the creation of a new, consolidated agency. Subsequently on January 14,
2003, Mayor Bromberg appointed Council Member Adams as the representative and
Council Member Webb as the alternate to serve on the SJHTCA. According to Council
Member Webb, the Transportation Corridor System (TCS) group was active for two
years, however the consolidation (merger) of the SJHTCA and FETCA (Foothill /Eastem
Transportation Corridor Agency) never took place. At the June 14, 2007 meetings of
the two Transportation Corridor Agencies, the Boards voted to approve the repopulation
of the TCS Board of Directors and the reactivation of the TCS as the potential acquiring
entity of both the FETCA and the SJHTCA. At the same time, they requested that the
member agencies appoint representatives to serve on the TCS Board of Directors.
Since the current members serving on the SJHTCA (Council Members Webb and
Daigle) are familiar with the processes and responsibilities, it is recommended that
those members be appointed to serve on the TCS Board.
Submitted by:
LaVonne M. Harkless, City Clerk
JUN -21 -2007 THU 0423 PM Traosp,Corridor Agencies FAX N0, 949 754 3467 P. 02
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June 21, 2007
Ms. Lavonnc Harkless
City Clerk
City of Newport Beach
3300 Newport Blvd.
Newport Beach, CA 92663
RE: Selection of a Board Member for the Transportation Corridor System
First meeting scheduled for July 12, 2007
Dear Ms, Harkless
On June 14, 2007, the Foothill/Eastern and San Joaquin Hills Transportation Corridor Agencies
voted to reactivate the Transportation Corridor System. We are requesting that your city identify
a city council member to represent the city on the Transportation Corridor System (TCS) Board
of Directors. To retain continuity on the various issues to be considered by the TCS, I encourage
your city to consider appointing the same council member who is currently your San Joaquin
Hills Transportation Corridor Agency representative.
The Transportation Corridor System is a joint powers authority created in April 2003 to
potentially acquire the two existing Agencies. It's goals are increasing the long -term financial
strength of Orange County's toll road system and minimizing the risk of the San Joaquin Hills
Transportation Corridor Agency going into default on its bonds.
The TCS was created and a few meetings were held, however, it never proceeded with the
acquisition that was originally considered. Instead, a mitigation and loan agreement between the
two Agencies was developed and approved in November 2005. The agreement reduced the risk
of the San Joaquin Hills Transportation Corridor Agency going into technical default and
eventually, monetary default, on its bonds. Included in the agreement was cooperative directive
that the two Boards of Directors would work together on options that would reduce the San
Joaquin hills Agency's need for loans and enable the Foothill/Eastern Agency to most
effectively finance the completion of the 241 Toll Road, Foothill- South.
A Joint Financial Ad Hoc Committee began in December 2005. After analyzing a variety of
options, the Ad Hoc Committee recommended in April 2007 that the Boards of Directors pursue
an analysis of an acquisition that would join the two Agencies under one new entity, enabling the
organization to operate more efficiently. The recommendation was made after the results of a
recalibrated traffic and revenue model showed an average annual revenue increase of 14 percent
for the Foothill/Eastern Agency and a 20 percent for the San Joaquin Hills Agency.
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Selection of a. Board Member for the Transportation Corridor System
June 21, 2007
Page 2 of 2
The current acquisition plan could streamline operations, increase financing capacity for
Foothill- South, and potentially save money over the remainder Agencies' existence.
Both Boards of Directors approved this recommendation and authorized a contract with
Stantec Consulting to conduct a complete Traffic and Revenue Study, a necessary step in the
continuing development of a potential acquisition transaction.
Now that the Boards have voted to reconvene the Transportation Corridor System, the next step
is for each of the TCS member agencies to identify a member of the City Council for the Board
of Directors.
The TCS is an existing JPA and would continue to operate under its existing governance
structure of 21 members and a supermgjority voting requirement. Members of the Transportation
Corridor System include;
Aliso Viejo
Anaheim
Costa Mesa
County of Orange 3`d District
County of Orange 0 District
County of Orange 5d' District
Dana Point
hvine
Laguna Bills
Laguna Niguel
Laguna Woods
Lake Forest
Mission Viejo
Newport Beach
Orange
Rancho Santa Margarita
San Clemente
San Juan Capistrano
Santa Ana
Tustin
Yorba Linda
The first meeting of the Transportation Corridor System Board of Directors is scheduled for July
12, 2007, in the Transportation Corridor Agencies' Board Room, 125 Pacifica, Irvine, California.
The meeting will take place immediately following the meeting of the San Joaquin Hills
Transportation Corridor Agency Board of Directors.
Please send a letter to Annita Henzie, Clerk of the Board, identifying your city's TCS
representative.
Sincerely,
Carmen Cave, Chairwoman
San Joaquin Hills Transportation Corridor Agency
P. 03