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FOOTHILL/EASTERN TRANSPORTATION CORRIDOR AGENCY BOARD OF DIRECTORS

AGENDA

April 9, 2015 10:30 a.m.

TCA Offices 125 Pacifica, Irvine, CA 92618

AGENDA DESCRIPTIONS The agenda descriptions are intended to give notice to members of the public a general summary of items of business to be transacted or discussed. The listed action represents staff’s recommendation. The Board of Directors may take any action it deems to be appropriate on the agenda item, and is not limited in any way by the recommended action. In compliance with the Americans with Disabilities Act, if you require special accommodation for this meeting, you should notify the Clerk of the Board 24 hours prior to the meeting at (949) 754-3492. The agenda is posted at the TCA office and is also available on the website at www.thetollroads.com. Materials distributed to the majority of the members of the TCA Board of Directors in connection with any matter subject to consideration at this meeting in open session are available for public inspection at the TCA offices.

I. CALL TO ORDER

INVOCATION (Director Murphy)

PLEDGE OF ALLEGIANCE (Acting Chairman Young) ROLL CALL Acting Chair Craig Young City of Yorba Linda Director Lisa Bartlett County of Orange, 5th District Director Tony Beall City of Rancho Santa Margarita Director David Benavides City of Santa Ana Director Kerry Ferguson City of San Juan Capistrano Director Lucille Kring City of Anaheim Director Mark Murphy City of Orange Director Shawn Nelson County of Orange, 4th District Director Charles Puckett City of Tustin Director Greg Raths City of Mission Viejo Director Scott Schoeffel City of Dana Point Director Christina Shea City of Irvine Director Todd Spitzer County of Orange, 3rd District Director Scott Voigts City of Lake Forest Director Kathy Ward City of San Clemente Ryan Chamberlain Caltrans, Ex-Officio Member

http://www.thetollraods.com/

F/ETCA Board Of Directors Agenda April 9, 2015

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II. PUBLIC COMMENTS At this time, members of the public may address the Board of Directors regarding any items within the subject matter jurisdiction of the Board of Directors, but no action may be taken on off-agenda items unless authorized by law. Comments shall be limited to three (3) minutes per person and twenty (20) minutes for all comments unless the Chairman, subject to the approval of the Board, sets different time limits.

III. CONSENT CALENDAR (Items 1-2) 1. MINUTES OF THE BOARD MEETING – MARCH 12, 2015 (Kathleen Loch, Clerk of the Board) FILE NO.: (2015F-001) ACTION: Approve Minutes. 2. FOOTHILL/EASTERN INVESTMENT REPORT (Howard Mallen, Director of Finance) FILE NO. (2015F-003) Enclosed are the monthly investment reports for the Foothill/Eastern Transportation Corridor

Agency (F/ETCA) as February 28, 2015. As of February 28, 2015, all indenture funds are invested in accordance with the permitted investment section of the respective indentures and all non-indenture funds are invested in compliance with both the California Government Code and F/ETCA Investment Policy.

ACTION: Receive and file.

V. BOARD BUSINESS (ITEM 3-5) 3. ANNUAL REVIEW OF INVESTMENT POLICY (Howard Mallen, Director of Finance) FILE No. (2015F-013)

Staff and Chandler Asset Management have reviewed the existing F/ETCA Investment Policy and the California Government Code and recommend the Investment Policy be revised. The revisions were discussed in summary form with the Joint Strategic Planning Ad Hoc Committee on March 12, 2015.

Staff recommends the adoption of Resolution F2015-002, approving the Investment Policy for the Foothill/Eastern Transportation Corridor Agency.

ACTION: Adopt Resolution F2015-002 approving the Investment Policy for the Foothill/Eastern Transportation Corridor Agency (“F/ETCA”).


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4. COMMUNITY ASCERTAINMENT STUDY (Mike Kraman, Chief Executive Officer) FILE No. (2015F-007)

A community ascertainment study is recommended to determine if and how the community believes the Foothill/Eastern Transportation Corridor Agency should proceed in resolving the traffic congestion issues on I-5 in South Orange County. The study will also determine what priorities are important to address in order to achieve consensus about how to solve these mobility issues. Staff is recommending that Sharon Browning & Associates be awarded a contract to provide the community ascertainment study.

ACTION: 1. Authorize the chief executive officer (CEO) to execute a three-year contract with Sharon Browning & Associates (Contract K001009) in the amount of $61,705 to conduct a community ascertainment study related to the Interstate 5 congestion issues in South Orange County.

2. Authorize the CEO to make additional changes deemed necessary and execute contract

amendments within ten percent ($6,170) of the above contract approved by the Board through this action.

5. 2015 LEGISLATIVE TRACKING LIST & PLATFORMS (Barbie Daly, Manager of Government Affairs) FILE No. (2015J-016)

Staff is recommending approval of the 2015 State and Federal Legislative Platforms for the Foothill/Eastern and San Joaquin Hills Transportation Corridor Agencies attached to this staff report. Each year the state legislature introduces new bills and a watch list is developed for monitoring bills that could have an impact on toll road operations or the agencies’ mission. A list of the bills currently being evaluated is attached to this report. As specific legislation is developed and a formal support or oppose position is in the best interest of the agencies, staff and the agencies’ legislative advocates will develop and review recommendations with the Joint Legislative Ad Hoc Committee and bring the request to the Boards of Directors for review and approval.

ACTION: 1. Approve Federal Legislative Platform

2. Approve State Legislative Platform 3. Receive and File State Legislative Watch List

LEADERSHIP ELECTIONS – CHAIR & VICE CHAIR (Craig Young, Acting Chairman)

CHIEF EXECUTIVE OFFICER’S REPORT (Michael Kraman, Chief Executive Officer)

• Traffic & Revenue Update

DIRECTORS’ REPORTS AND NEW BUSINESS (Craig Young, Acting Chairman)

• Ad Hoc Committees – Monthly Reports


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V. CLOSED SESSION

CONFERENCE WITH LEGAL COUNSEL - EXISTING LITIGATION (Subdivision (a) of Government Code Section 54956.9)

• California Regional Water Quality Control Board, San Diego Region, Waste Discharge

Requirements Tentative Order No. R-09-2103-0007

VI. FOOTHILL/EASTERN ADJOURNMENT

The next regularly scheduled meeting of the Foothill/Eastern Board of Directors is Thursday, May 14, 2015, at 10:30 a.m., TCA Offices, 125 Pacifica, Irvine, CA 92618.

FOOTHILL/EASTERN TRANSPORTATION CORRIDOR AGENCY BOARD OF DIRECTORS

MINUTES

March 12, 2015 10:30 a.m.

TCA Offices 125 Pacifica, Irvine, CA 92618

I. CALL TO ORDER

The meeting was called to order at 11:15 a.m.

INVOCATION

(Director Puckett)

PLEDGE OF ALLEGIANCE (Acting Chairman Young) OATH OF OFFICE

Acting Chair Young administered the Oath of Office to Kerry Ferguson, the new Director from the City of San Juan Capistrano.

ROLL CALL Acting Chair Craig Young City of Yorba Linda Director Lisa Bartlett County of Orange, 5th District Director Tony Beall City of Rancho Santa Margarita Director Kerry Ferguson City of San Juan Capistrano Director Lucille Kring City of Anaheim Director Mark Murphy City of Orange Director Charles Puckett City of Tustin Director Greg Raths City of Mission Viejo Director Scott Schoeffel City of Dana Point Director Christina Shea City of Irvine Director Todd Spitzer County of Orange, 3rd District Director Scott Voigts City of Lake Forest Director Kathy Ward City of San Clemente Lisa Ramsey Caltrans, Ex-Officio Member Absent: Director David Benavides City of Santa Ana Director Shawn Nelson County of Orange, 4th District

F/ETCA Board Of Directors Minutes March 12, 2015

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II. PUBLIC COMMENTS

There were no public comments.

III. CONSENT CALENDAR (Items 1-3) ACTION: Approve Consent Calendar Items 1-3. MOTION: Puckett SECOND: Murphy VOTE: Unanimous (with abstentions on Item 1b by Director Bartlett) 1a. MINUTES OF THE BOARD MEETING – FEBRUARY 12, 2015 (Kathleen Loch, Clerk of the Board) FILE NO.: (2015F-001) ACTION: Approve Minutes. 1b. MINUTES OF THE SPECIAL BOARD MEETING – FEBRUARY 26, 2015 (Kathleen Loch, Clerk of the Board) FILE NO.: (2015F-001) ACTION: Approve Minutes. 2. FOOTHILL/EASTERN INVESTMENT REPORT (Howard Mallen, Director of Finance) FILE NO. (2015F-003) Enclosed are the monthly investment reports for the Foothill/Eastern Transportation Corridor

Agency (F/ETCA) as January 31, 2015. As of January 31, 2015, all indenture funds are invested in accordance with the permitted investment section of the respective indentures and all non-indenture funds are invested in compliance with both the California Government Code and F/ETCA Investment Policy.

ACTION: Receive and file. 3. RETAIL MARKETING AGREEMENT WITH HAGGEN OPCO SOUTH, LLC GROCERY

CHAIN (Patti Bond, Senior Operations Analyst) FILE NO. (2015J-009)

The Haggen grocery chain is coming to Orange County, California. TCA has engaged in business discussions with Haggen for the purpose of distributing TCA transponders at certain Haggen locations. This will improve customer service by making transponders more accessible to the public. The preliminary staff estimate of sales, based on the existing Costco and Albertsons retail programs, is that 40 new enrollments would be generated per month from the new stores. Given the preliminary analysis, customer services benefits and the opportunity to expand our retail marketing presence, staff recommends approval of this retail marketing agreement with Haggen.

ACTION: Authorize the chief executive officer to execute Contract No. K000994 with Haggen OPCO

South, LLC (Haggen) to distribute FasTrak® transponders through the Haggen grocery chain.


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IV. PRESENTATIONS (ITEMS 4-5) 4. TRANSPARENCY DISCUSSION (Mike Kraman, Chief Executive Officer) FILE NO. (2015J-013)

An article which ran in the Orange County Register on February 19, 2014, brought into question the Transportation Corridor Agency’s (TCA) compliance with a request from the State Controller in 2012 for compensation data. TCA did provide the data and has done so annually ever since. A number of Board Members were concerned about the reference in the article and Director Spitzer requested that the item be added to the agenda to allow the Board Members to have a discussion about transparency at TCA.

TCA strives to conduct business in a transparent manner guided by best practices. For example, TCA posts on its website (www.thetollroads.com) Board Meeting agendas and staff reports, executive and Board Member compensation, employee benefits, and financial information including monthly transaction and revenue tables, annual financial statements and approved budgets for the current and previous fiscal years. TCA also follows comprehensive procurement practices including a new online procurement system called Planet Bids. Toll rates are also available on the website.

Mike Kraman, Chief Executive Officer, presented this item to the Board. CEO Kraman noted

that one year ago, he made a commitment to improve transparency at TCA. Director Spitzer and I had a discussion and it is very appropriate that the Board discuss the transparency policies at this agency and the need for us, as your staff, to adhere to those and I would like to reemphasize my commitment to that. I think we have made improvements over the year, but clearly we can continue to make improvements and it is extremely important to us and to this agency to be as transparent as we can.

Acting Chair Young reported that the San Joaquin Hills Board of Directors had a very robust

conversation regarding this and they unanimously agreed to continue to uphold that transparency, which is a huge priority for both agencies. With no objection, Acting Chair Young stated that this agency is unanimously in support of being as transparent as absolutely possible. The San Joaquin Hills Board took action to send this item to the TCA Joint Executive Committee to work on best practices and a position/policy statement to make sure that we are doing everything absolutely possible to be as transparent an agency as we can.

MOTION: Acting Chair Young moved that this item be taken to the TCA Joint Executive

Committee for further discussion and that recommendations be brought back to the Board

SECOND: Murphy VOTE: Unanimous

http://www.thetollroads.com/


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5. TRAFFIC & REVENUE UPDATE (Dave Lowe, Acting Chief Engineer) FILE NO. (2015J-014)

Staff presented an overview of the tolling system layout and discussed elements of the current toll rate structure. Steven Abendschein of Stantec Consulting Services Inc., the agencies’ traffic and revenue consultant, then reviewed the fiscal year-to-date impacts of the July 2014 toll rate changes to the system traffic and revenue. Dave Lowe, Acting Chief Engineer, presented this item to the Board. Steve Abendschein, representing Stantec Consulting, also provided information to the Board and fielded questions.

Board discussion included: A request from Director Ward to receive a copy of Mr.

Abendschein’s Power Point presentation. V. BOARD BUSINESS (ITEM 6) 6. SIGNAGE ENHANCEMENTS – RESEARCH (Lisa Telles, Chief Communications Officer) FILE No. (2015J-007)

Qualitative and quantitative research is recommended to test the effectiveness of existing and proposed toll road signs communicating how to pay tolls and how drivers utilize the One-Time-Toll payment option. The research will support planned enhancements to on-road signage, and revisions to the website and online One-Time-Toll payment process to improve the customer experience. Staff is recommending that Trotta/Hansen, Inc., with research facilities in both Irvine and Marina del Rey, be awarded a contract to conduct the research as outlined in the staff report.

ACTION: Authorize the CEO to sign a letter agreement No. K000996 with Trotta/Hansen, Inc., in the amount not to exceed $24,500 to conduct consumer research for One-Time-Toll® signage and online payment process.

Acting Chair Young provided a report on this item stating that this is a dual agency request, it was bid out accordingly and the San Joaquin Hills Agency decided to send it to the Joint Toll Operations Hoc and Marketing Ad Hoc Committee meetings without ruling on it during their meeting today, and therefore this Board cannot rule on it. He requested that Ms. Telles give the Board a very abbreviated report and suggested that the Foothill/Eastern Board support the position to have the ad hoc committees take a look at it further.

Lisa Telles reported that in December there was discussion about an amendment to a design

contract for improving the signage and adding more signage to The Toll Roads. During that discussion there was talk about what words would be on the signs and that staff should conduct research to help determine the correct wording for the signs. A request for proposal was sent to three firms that are familiar with and do this type of research. Staff recommendation is to contract with Tratta/Hansen, Inc., a firm that has facilities in Irvine and in Los Angeles. The San Joaquin Board preferred that more of the research take place in Orange County and they have the ability to do that.


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Acting Chair Young noted there will be more discussion at the ad hoc level. He suggested if the Board Members have interest in hearing what was discussed at the San Joaquin Hills Agency meeting that it is worthwhile for you to listen to. He also encouraged the Board to receive and file this item and wait for the ad hoc committees to do some of the additional work.

Lisa Telles noted that in light of the discussion from today’s first item about transparency, she

offered copies of all of the proposals that Director Spitzer had asked for during the San Joaquin Hills Agency meeting.

MOTION: Director Bartlett moved to send this item to the Joint Toll Operations Ad Hoc

Committee and the Marketing Ad Hoc Committee for further discussion.

Additionally and for the sake of clarity on both TCA Board Agenda’s, directed staff to note that if an agenda item was presented to an ad hoc, to indicate as such, for example: “presented to XYZ ad hoc” and the date. If it was presented multiple times for multiple ad hoc meetings, list those as well. This will ensure that when an agenda item is noticed that it was vetted through the ad hoc committees.

SECOND: Voigt VOTE: Unanimous CHIEF EXECUTIVE OFFICER’S REPORT (Michael Kraman, Chief Executive Officer)

CEO Kraman reported that staff will be in San Diego on Monday, March 16, at the San Diego Regional Water Quality Control Board. They will be having a hearing to consider approval of their findings relative to the waste discharge requirements permit for the Tesoro Extension. Dave Lowe reported there will be a significant road closure planned for this weekend. There is a bump in the road, which has developed over the last decade and is gradually getting worse. TCA staff had Caltrans look into it and the location is on the NB SR 241 before you get to the Santiago Canyon/Chapman exit. It’s approximately two miles south of that exit. Caltrans has come up with an emergency project and staff was just informed about it this week as they are anxious to get out there and do the repairs. They are planning on a 55 hour closure from 10 p.m. on Friday through 5 a.m. on Monday in the northbound direction only. The southbound direction will remain open to traffic and staff will be sending an email blast out, it is posted on social media, and it will also be available on the website. The message will also be posted on the changeable message signs on the system to alert traffic that this is taking place.


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• Traffic & Revenue Update

CEO Kraman reported that transactions for the Foothill/Eastern Corridor in February were up 5.3% and revenue was up 8.5%.

• Introduction of Samuel Johnson, Chief Toll Operations Officer

Mr. Kraman introduced the TCA’s new Chief Toll Operations Officer, Samuel Johnson and offered that Mr. Johnson repeat his presentation that was made at the previous Board Meeting regarding a Toll Operations update. Acting Chair Young welcomed Mr. Johnson and opened the floor up for questions without the necessity of repeating the presentation. Director Kring noted that during Mr. Johnson’s presentation he stated that when people call in it takes them 15 minutes on hold and then another 5 minutes on the call. I liked your idea that you save 10 minutes on the freeway and it shouldn’t take 20 minutes to sort out any problems with your billing. You said you would get back to customers if they leave a message within 48 hours. There are businesses that do this for a living, but I think if you have a problem and you are calling in, that means you are really upset because if it’s not that big of a deal you are not going to call and complain; it’s just the nature and you never call if you are happy. I think you need to work out a system where customers get called back within 24 hours. If you could work on that and shortening it with a time specific when you will be able to call back, I think that ingratiates the customer to be more positive. Samuel Johnson replied that staff can definitely look at that. It is one of the metrics that we have to bring back to the Board and ask you what you want the standard to be. Of course in all of these decisions there is a cost side to it so if we want to return the call within 24 hours, considering all of our other work flow, it might mean we need more staffing or we need to push folks towards more automated options; however, we can definitely come back with those options for you. Director Murphy noted that there are other processes out there that are placeholders and I would be more encouraged to go that way rather than just a commitment that somebody will call you back. By a placeholder, I mean that if you are on phone and a message pops up that says the wait could be significant, we will call you back in the order in which we have received the calls. Then your call director drops the call to the next available agent within that line of order. Samuel Johnson responded that this is one of the features the agency will be looking at to purchase in the new back office system and we definitely want that level of integration and that capability.


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DIRECTORS’ REPORTS AND NEW BUSINESS

(Craig Young, Acting Chairman)

• Ad Hoc Committees – Monthly Reports

Joint Legislative Ad Hoc Committee Meeting: Acting Chair Young reported that Joint Legislative Ad Hoc Committee Meeting 3/4/2015 Chairman Young Update to Board that the Joint Legislative Ad Hoc Committee met a week ago Wednesday. Staff along consultants from Sacramento and DC presented the state and federal legislative platform documents for 2015. The platforms outline the agencies’ legislative and regulatory goals for the upcoming legislative sessions. The documents will also serve as a guide for the TCA boards’ endeavors to advance the mission and goals of the agencies. The Committee was also provided with this year’s initial legislative list of bills pertaining to transportation. Of the roughly 2,000 new bills that were introduced at the end of February, approximately 60 of them may be of relevance to TCA and/or other transportation agencies. At the April Board meeting, staff will be presenting what we refer to as the “legislative watch list” of bills they will be monitoring for Board approval. F/E Mobility Ad Hoc Committee Meeting: Director Puckett reported that the Mobility Ad Hoc Committee met a week ago Wednesday. Staff provided an update on the various aspects of the 241 Long Range Plan. Much progress has been made to engage key stakeholders in discussions regarding the need to address traffic impacts and what those impacts mean to the quality of life, not only in South Orange County, but also the overall region.

An update was also provided on the upcoming San Diego Regional Water Quality Control Board meeting scheduled for this coming Monday, March 16th in San Diego. This past September, the State Water Board remanded the item back to the Regional Board stating that they needed to adopt findings that explain the legal and factual basis for the denial. As currently drafted, the tentative resolution proposes the continued denial of our permit and does not expressly state factual reasons for the denial, which is contrary to the State’s order. The Board will be notified of the outcome of Monday’s water board meeting.

Consultants for the agency attended the ad hoc committee meeting to discuss their efforts on state & federal legislation that may impact transportation.

Joint Toll Operations Ad Hoc Committee:

Director Puckett reported that The Joint Toll Operations Ad Hoc Committee met on March 11 and discussed the following topics: CSC/VES services contracts, Violation Migration Policies, “No plate” Violations and California Highway Patrol (CHP) Enforcement.


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The CSC/VES services contract expires on June 30. The CEO provided procurement updates on the interim CSC/VES Operations and Systems Support RFPs. The interim RFP for Operations was issued on February 9. The proposals are due in March, and the contract award and Notice to Proceed (NTP) are scheduled for May. The interim RFP for Systems Support will be issued in March. Contract award and NTP are scheduled for June. The existing system will operate and be maintained until the long-term CSC/VES system is in place (18 – 22 months).

Staff briefed the committee on key findings from the Industry Review of the long-term CSC/VES Operations and Systems RFP. The Industry Review responses are available to all board members.

Staff presented TCA’s violation mitigation polices for violation resolution involving TCA accountholders and non-accountholders. TCA will continue to provide a customer service approach in resolving violation issues. The primary goal is to convert violators into customers. Staff briefed the committee on the upward trend of ‘no plate” transactions as a direct relationship to the increase in new vehicle sales. Transactions from no plates are the most significant contributors to revenue loss within TCA. To control this type of revenue loss, the agencies contract with the CHP as an extension of the toll violation enforcement program. Information regarding the program’s cost and effectiveness was presented to the committee members. Director Bartlett requested that the Board direct staff to get all agendas for ad hoc committee meetings at least 24 hours in advance so that they can perform the necessary Levine Act screenings and avoid putting Board and Committee Members at risk. Acting Chair Young reported that the appointment of the Chair and Vice Chair positions for the agency was not agendized for this meeting and that it will take place in April. Director Spitzer noted you can amend the agenda if there is an urgent matter and questioned if the Acting Chair has the same powers as delegated to a Chair. Legal Counsel Joseph responded in the affirmative that the Administrative Code of the TCA makes it clear that the Acting Chair stands in the shoes of the Chair in terms of authority. Director Young added it would be his pleasure to assist as the Chair for the agency and would be open to anyone else showing interest. Director Bartlett has expressed a willingness to serve as a Vice Chair and Director Kring has expressed an interest in serving in some capacity as well.


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Director Ward requested that with the March 16 meeting coming up with San Diego Water Quality Control Board; that this Board agendize the item to get an update at the April Board Meeting to discuss the strategy. Director Shea noted that in the past Board Members were asked to attend and testify to defend the agency’s position in San Diego and questioned why this is not happening on the 16th and if at this time there is no value in it. CEO Kraman responded that the regional board will take an action to approve specific findings to support the decision they made to deny our permit in June 2013 as directed by the State Water Board. The San Diego Water Quality Control staff report is out and we don’t believe the findings are consistent with the State Board’s directive. The TCA will have limited presence on Monday and if their board moves forward with their staff recommendation, our best course is back at the State Board, not at the regional board. Director Ward questioned that as far as placing this on the agenda she didn’t see any objections on the Board level, and questioned if this would be added on. Director Spitzer stated that he read the opinion from the staff report at the San Diego Regional Water Quality Control Board and also the memo from TCA staff. Obviously we all know where this is going – it’s going to litigation … they want to force litigation. I would just say that we do have an exception under the Brown Act to be able to understand the impressions of our staff and lawyers on something this critical. I would just say that these kinds of things, especially in anticipation of a March 16 hearing, this should have been agendized today for a closed session so that everybody could have known, in a protected space, what exactly is going on, what the theories are, and what would be the strategy. I don’t understand what the legal strategy is so it’s hard to discuss it and it’s not meant to be discussed in open session. Director Shea agreed and questioned if it isn’t the Board’s job to make that decision of what our legal strategy should be; we should be in a closed session talking about it. I don’t know when that may happen, but maybe we might want to consider doing that. Director Spitzer noted that this actually may be urgent although he didn’t decide whether it was on the agenda or not. There are some of us who are completely in the dark over what the strategy is and I haven’t received a private briefing on it, so I can’t say anything but if you have an interest in this issue, you should get a one-on-one with both the CEO and Mr. Joseph. Acting Chair Young questioned if this could be set as an urgency item to go into closed session and give the directors a quick review. Legal Counsel Joseph responded that if this is a matter that came to the attention of the agency after the agenda was posted, based on a two-thirds vote, the Board could hold that kind of a session.


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CEO Kraman added that his communications to the Boards on this item have predated the agenda because it had been included in his weekly reports. Acting Chair Young encouraged the directors to circle back with staff individually for more information on the hearing.

VI. CLOSED SESSION No Closed Session items for discussion. VII. FOOTHILL/EASTERN ADJOURNMENT

The meeting was adjourned at 12:07 p.m. The next regularly scheduled meeting of the Foothill/Eastern Board of Directors is Thursday, April 9, 2015, at 10:30 a.m., TCA Offices, 125 Pacifica, Irvine, CA 92618.

ATTEST: Kathleen Loch, CAP-OM, Clerk of the Board Sherri McKaig, Assistant Secretary to the Board Craig Young, Acting Chairman Foothill/Eastern Board of Directors

.

03_12_15 Traffic and Revenue Update

Traffic & Revenue Update

Foothill/Eastern Transportation Corridor Agency

March 12, 2015


1

Traffic and Revenue Update

Overview of Toll System Layout Toll Rate Structure Stantec review of traffic and transactional

toll revenue Questions and answers


Toll Rate Structure

F/ETCA SJHTCA

Pay Points per Trip Up to 3 1

Peak Hour Rates M-F Tomato Springs and Portola North

Same toll rates as peak period

Catalina View NB 8-9 a.m. SB 5-6 p.m. Windy Ridge, Orange

Grove & Irvine Ranch Same toll rates as peak period

Peak Period Rates M-F Tomato Springs and Portola North

NB 7-9 a.m. SB 4-7 p.m.

Catalina View NB 7-8 a.m., 9-10 a.m. SB 3-5 p.m., 6-7 p.m. Windy Ridge, Orange

Grove & Irvine Ranch SB 7-9 a.m. NB 4-7 p.m.

Weekend Rates N/A Saturday & Sunday

Off-Peak Rates All other times All other times

Multi-Axle Policy 2 x auto toll – 3 & 4 axle 4 x auto toll – 5+ axles

2 x auto toll – 3 & 4 axle 4 x auto toll – 5+ axles


Transactional Toll Revenue by Plaza

FY15 Revenue as of 1/31/15

//ANUBIS/SHARED/Presentations/!todays/03_12_2015_Stantec_FE.pptx#0. PowerPoint Presentation

1 1

Foothill/Eastern Toll Corridors

1

2

Agenda

1 Background

2 Driver Response to Recent Toll Increase

3 Application of Toll Elasticity Theory

4 The Role of Economics

Background and User Base

3

Eastern Toll Road

User Base

• Very strong commuter

base from housing in

Riverside County to

employment centers

in Orange County

• Alternatives include

SR-91 and SR-55, both

with high levels of

peak period

congestion

5

Foothill Toll Road

User Base • Strong housing market

in southeastern

Orange County

commuting to

employment centers

• Alternatives are mostly

signalized local

arterials

• Future development

6

7

Driver Response to FY 2015

Toll Increase

7

8

FY 2015 Toll Increase

• FasTrak toll increase by 2% at all locations except: • Reduce tolls at Irvine Boulevard West NB Off / SB On by 5%

• AET Ramp Configuration Introduced New Tolls at: • Irvine Boulevard West NB On

• Portola West SB On

• Introduce a $1.00 differential between FasTrak and non-FasTrak

8

9 9

$-

$1.00

$2.00

$3.00

$4.00

$5.00

$6.00

-

2,000,000

4,000,000

6,000,000

8,000,000

10,000,000

12,000,000

Jul-

97

Jan

-98

Jul-

98

Jan

-99

Jul-

99

Jan

-00

Jul-

00

Jan

-01

Jul-

01

Jan

-02

Jul-

02

Jan

-03

Jul-

03

Jan

-04

Jul-

04

Jan

-05

Jul-

05

*

Jan

-06

Jul-

06

*

Jan

-07

Jul-

07

*

Jan

-08

Jul-

08

Jan

-09

Jul-

09

*

Jan

-10

Jul-

10

Jan

-11

Jul-

11

*

Jan

-12

Jul-

12

*

Jan

-13

Jul-

13

*

Jan

-14

Jul-

14

*

Jan

-15

Transactions

Revenue

Average Toll

+0.6% per month

-0.8% per month

+0.6% per month

10

FY 2015 Toll Increase Response

• Overall F/ETC Transactions up 1.3%

• Overall F/ETC Revenue up 3.9%

• Foothill Transactions Flat • Tomato Springs slightly down

• Oso Parkway, Los Alisos, and Portola North transactions up

• Antonio Parkway, Portola South, and Alton Parkway transactions down

• Eastern Transactions • Windy Ridge, Irvine Ranch, and Orange Grove transactions up

• Portola Parkway West and Irvine Boulevard East transactions up ~15%

• Irvine Boulevard West transactions down ~15%

• Network changes and development driving Eastern growth

10

Toll Elasticity

Building the Optimal Revenue Curve

11

12

• As toll rates increase,

traffic declines.

• The rate of decline is

the elasticity of traffic

Toll Elasticity Building the Optimal Revenue Curve

12

13

Example:

– Toll Increase from

$0.25 to $0.50

– Traffic declines 10%


13

14

Traffic times Toll Rate

Equals Revenue

Examples – $ .25 * 100 = $25

– $1.00 * 72 = $72

– $2.00 * 46 = $92


14

15

At the low end of the

revenue curve,

revenue increases

almost linearly with toll

increases.


15

16

As toll rates increase,

revenue increases slow

and the revenue curve

begins to flatten.


16

17

As toll rates approach

optimal, revenue

increases are nearly

zero and the revenue

curve is nearly flat.


17

18

As toll rates surpass

optimal, revenue

declines and the

revenue curve turns

downward.


18

19

Where is the optimal point?

– A: Maximum Revenue

– B: Optimal Toll


19

20

The Economy

(and its impacts on toll road usage)

20

21

(12)

(8)

(4)

0

4

8

12

16

20

24

1,400

1,600

1,800

2,000

2,200

2,400

2,600

2,800

3,000

3,2001979

1981

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

2015

VM

T C

ha

ng

e

VM

T (I

n B

illio

ns)

Recession Change US VMT US VMT

Vehicle Miles of Travel, National Average, 1978-201412-month moving total

0.96

0.97

0.98

0.99

1.00

1.01

1.02

1.03

1.04

1.05

1.06

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

Ind

exe

d V

MT

(No

v 2

00

3 =

1.0

0)

Recession US CA

Vehicle Miles of Travel, National vs. California12-Month Moving Total

22

0.70

0.80

0.90

1.00

1.10

1.20

1.30

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

Em

plo

ym

en

t In

de

x (

Jan

2007 =

1.0

0)

LOS ANGELES RIVERSIDE SAN FRANCISCO SAN JOSE IRVINE

Metro Area Employment, 2000-Last Release: California Metro Areas

San Francisco

Irvine

Riverside

Los Angeles

San Jose

The Economy – Non-Residential

Tustin Legacy: Over 7 million square feet of non-residential space planned by 2030

Heritage Fields at El Toro: up to 1.2 million square feet of non-residential space

TIC Spectrum 2: Candidate for re-development of non-

residential space amounting to approximately 10,000 new jobs

TIC Irvine Center: Plans by

Irvine Company and other developers of non-residential space amounting to over 30,000 new jobs by 2035

Rancho Mission Viejo: Plans

for approximately 5 million square feet of non-residential space by 2035

23

24

1.00

1.25

1.50

1.75

2.00

2.25

2.50

2.75

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

Em

plo

ym

en

t In

de

x (

Jan

2000 =

1.0

0)

Recession San Diego Los Angeles San Francisco 10 City Composite US

S&P Case Shiller Home Price Index, 2000-Last Release

0

50

100

150

200

250

300

350

400

450

500

Housing Starts (Orange County)

Housing Starts

25

2011 2012 2013 2014

January 245 140 219 352

February 56 121 412 257

March 129 156 243 274

April 398 119 269 298

May 300 244 435 351

June 139 190 279 351

July 71 136 320 361

August 64 230 380 247

September 89 161 263 214

October 92 248 347 271

November 78 247 285 236

December 109 239 287 236

Total 1770 2231 3739 3448

The Economy – Residential

26

Tustin Legacy: 1,700 homes built since 2006; 2,100

homes planned

FivePoint Communities (Lennar Homes) launched 726 homes in the Irvine Great Park this summer, the first of 10,700 planned new

homes

The 2,379-home Baker Ranch will go on sale in 2014

Rancho Mission Viejo

launched 940 new homes in Phase-1 of their master plan this summer, the first phase of a planned community of 14,000 homes

Active development supports transaction growth and development impact fee revenue

27

$0.50

$1.50

$2.50

$3.50

$4.50

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

Co

st p

er

Ga

llon

(N

om

ina

l D

olla

rs)

Recession U.S. Gas Price - All Formulations Los Angeles Gas Price - All Formulations

Gas Prices (Regular - All Formulations), National vs. Los Angeles, CAJune 2000 - Last Release

28

Conclusions

• Recent toll increases were revenue

positive

• Response on Eastern stronger than

Foothill

• Economy is rebounding rapidly

• Future development could spur

additional growth

28

29

Next Steps

• Complete FY 2016 Toll Increase Analysis

• Present results to board (4/22)

29

Questions?

30

All Electronic Tolling Update Operations Report

March 12, 2015

Samuel Johnson

Chief Toll Operations Officer

03_12_15_AET 2

Operations Enhancements

San Clemente Walk-in Center

New App Release: The Toll Roads En Español

New Costco In-store Advertising Forms

Voicemail/Callback Feature

New Customer Service Project Manager

Customer Service Representatives

03_12_15_AET 3

New Customer Accounts

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

Feb-14 Mar-14 Apr-14 May-14 Jun-14 Jul-14 Aug-14 Sep-14 Oct-14 Nov-14 Dec-14 Jan-15 Feb-15

FasTrak ExpressAccount

AET

03_12_15_AET 4

Transponder Activity Volumes

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000


New Additions Replacements Returns

AET

03_12_15_AET 5

Back Office Activities

0

10,000

20,000

30,000

40,000

50,000

60,000

70,000


AET

Web disputes, payment processing, email and written correspondences

03_12_15_AET 6

License Plate Image Processing

400,000

900,000

1,400,000

1,900,000

2,400,000

2,900,000

3,400,000

3,900,000


OCR Images Manual Review

AET

03_12_15_AET 7

Call Center Activity

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

18,000


Daily Average Call Volume Daily Average Calls Handled

AET

03_12_15_AET 8

Call Times

0:00

2:24

4:48

7:12

9:36

12:00

14:24

16:48


Daily Average Wait Time Daily Average Talk Time

AET

03_12_15_AET 9

Callback Service

0

50

100

150

200

250

300

350

400

450

500

Mon 2/23 Tue 2/24 Wed 2/25 Thu 2/26 Fri 2/27 Mon 3/2 Tue 3/3 Wed 3/4 Thu 3/5 Fri 3/6

Received

Calls returned within 48 hours 20% resolved prior to call back

Overload Volume: Feb 23-27: 2,807; March 2– 6: 5,369

Voice messaging service available in the Overload queue

03_12_15_AET 10

Overload and Abandon Calls

500

1,750

3,000

4,250

5,500

6,750

8,000

9,250

10,500

11,750

13,000


AET

03_12_15_AET 11

Customer Operations

High Performance Team – Operations contract – Staffing model – Managed performance metrics

High Performance Tools – Systems contract – Support business and customer needs – Web, mobile and phone system integration

Cost Efficient Processes – Continual review of opportunities – Business rules, account types and operating procedures – Align with Board goals

125 Pacifica, Irvine, CA 92618 949/754-3400 FAX 949/754-3467

DATE: April 9, 2015 TO: Foothill/Eastern Transportation Corridor Agency Board of Directors FROM: Howard Mallen, Director of Finance SUBJECT: Investment Reports STAFF RECOMMENDATION: Receive and file. BACKGROUND: The Foothill/Eastern Transportation Corridor Agency (F/ETCA) issues a monthly report to the Board of Directors to provide the overall investment profile and resulting performance of the investment portfolio. DISCUSSION: Compliance Enclosed are the investment reports for the F/ETCA for the month ended February 28, 2015. These investment reports reflect only assets held by the Trustee (Bank of New York), which include 2013 and 2015 indenture accounts and three non-indenture accounts. As of February 28, 2015, all indenture funds are invested in accordance with the permitted investment section of the respective indentures and all non-indenture funds are invested in compliance with both the California Government Code and F/ETCA Investment Policy. Portfolio Update Since January 31, 2015, the adjusted cost portfolio balance has decreased by approximately $52.6 million to $471.1 million primarily due to the refinancing of the 1995 Bonds. The refinancing transaction consisted of utilizing the 1995 Capitalized Interest Funds and 2015 Bond proceeds to refund the 1995 Bonds at a net present value savings of $33.5 million. The utilization of the capitalized interest funds was offset by the deposit of the present value savings into a project fund, resulting in a net decrease in the portfolio of $63.7 million. The remaining change

F/E Investment Reports File No. 2015F-003 April 9, 2015 Page 2 in the portfolio of $11.1 million includes toll revenue transfers of $12.4 million, the receipt of development impact fees of $1.0 million and interest income of $0.1 million. These receipts were partially offset by toll operations related expenses of $1.1 million and construction and construction related expenditures of $1.3 million. The weighted average maturity of the F/ETCA portfolio is 1.32 years. The weighted average YTM (Yield to Maturity @ Cost) decreased 143 basis points, from 2.00 percent on January 31, 2015 to 0.57 percent on February 28, 2015. The decrease is primarily due to the use of the capitalized interest funds in the 1995 Bonds refinancing. The market value of the portfolio is $0.5 million higher than adjusted cost at February 28, 2015. The market values reported herein have been obtained from Interactive Data Corporation, which provides an online interface to the agency’s investment database system. These market values are compared for reasonableness with the market values provided by the Trustee. Credit Update To maintain safety, adherence to an investment policy strategy of purchasing only top-rated securities and diversification of security types and maturities is required. As shown in Exhibit 2, approximately 59 percent of the entire portfolio is invested in U.S. Treasuries and Agency bonds that are rated AA+ by Standard & Poor’s and Aaa by Moody’s. The remaining portfolio is primarily invested in medium-term corporate notes and municipal bonds, all rated in one of the three highest rating categories by at least two nationally recognized statistical rating agencies, and short-term commercial paper rated “A1/P-1”, the second highest rating by the two rating agencies noted above. Economic Update The Federal Open Market Committee (FOMC) met in March and indicated that labor market conditions had improved since December and business fixed investment was also improving but the housing sector recovery continued to be slow. Export growth has weakened and inflation has declined further below the Fed’s long run objective, largely due to declines in energy prices. Although the FOMC did not change its target range for the Fed Funds rate, it is watchful for inflation and anticipates a rate increase later in the year, although it will most likely not be before June. While believing inflation will remain low in the near term, the FOMC expects inflation to rise gradually toward 2 percent over the medium term as employment improves further and energy prices rise. According to the Bureau of Labor Statistics total nonfarm payroll rose by 295,000 in February, and the unemployment rate dipped slightly to 5.5 percent, 1.2 percent lower than the year earlier. Job gains occurred in food service, business, construction, healthcare, transportation and

F/E Investment Reports File No. 2015F-003 April 9, 2015 Page 3 warehousing. The labor force participation rate lost 0.1 percent to a rate of 62.8 percent for February. The employment-population ratio was little changed at 59.3 percent, although this is half a percent above the year-earlier figure. After January’s high housing start rate, February’s groundbreakings dropped largely due to harsh weather conditions. Fannie Mae expects much of the first quarter’s projected economic activity to shift into the second quarter, with continued strengthening thereafter. The housing industry still expects solid gains this year due to expected job growth, low mortgage interest rates and pent-up demand. Many economists agree, noting the rapidly tightening labor market is expected to push up wage growth and encourage more young adults to set up their own homes. Housing starts for 2015 are expected to surpass 2014 results. Exhibits 1. Portfolio Summary – F/ETCA Indenture and Non-Indenture Funds

This report provides a summary of the F/ETCA total portfolio value by asset category on both an adjusted cost basis (historical cost adjusted for the cumulative amortization of premium/discount recorded to date) and market value basis (fair value based on quoted market prices).

2. Portfolio Summary Graph– F/ETCA Indenture and Non-Indenture Funds Asset Allocation Comparison – Market Value

This pie chart is a representation of the market value and related percentage of each asset category in the portfolio to the total portfolio. The investment policy and debt agreements specify percentage limitations on certain asset categories. At February 28, 2015, the agency holdings were all below the maximum percentage limits.

3. Fixed Income Holdings – F/ETCA Indenture and Non-Indenture Funds

This report provides a detailed description and the associated rating of each fixed income security held in the F/ETCA portfolio at February 28, 2015. This report includes all agency security holdings with the exception of money market funds and cash. All of the agency’s investments were rated at or above the minimum rating required per the agency’s investment policy and debt agreements.

4. Investment Definitions

This is a list of common terminology used to describe the agency’s investment portfolio. Staff has provided this glossary to assist the Board in their review of the agency’s investment practices.

F/E Investment Reports File No. 2015F-003 April 9, 2015 Page 4

BUDGET: N/A CONCLUSION: Enclosed are the monthly investment reports for the Foothill/Eastern Transportation Corridor Agency (F/ETCA) as of February 28, 2015. As of February 28, 2015, all indenture funds are invested in accordance with the permitted investment section of the respective indentures and all non-indenture funds are invested in compliance with both the California Government Code and F/ETCA Investment Policy. Attachments

Transportation Corridor AgenciesPORTFOLIO SUMMARY

Foothill/Eastern Transportation Corridor AgencyIndenture & Non-Indenture Funds

February 28, 2015

Adjusted PctSecurity Type Cost Market Value Assets Yield

Money Market & CashMONEY MARKET & CASH 48,612,947.00 48,612,947.00 10.31 0.00

48,612,947.00 48,612,947.00 10.31 0.00

Certificates of DepositCERTIFICATES OF DEPOSIT 992,000.00 993,271.74 0.21 0.75

992,000.00 993,271.74 0.21 0.75

Commercial PaperCOMMERCIAL PAPER 114,416,320.27 114,415,750.00 24.26 0.28

114,416,320.27 114,415,750.00 24.26 0.28

U.S. TreasuriesTREASURY NOTES 199,224,257.32 199,624,246.81 42.33 0.76

199,224,257.32 199,624,246.81 42.33 0.76

U.S. AgenciesFHLB BOND 14,360,051.14 14,373,080.68 3.05 2.09FHLB DISCOUNT NOTE 3,000,538.64 3,002,151.00 0.64 0.36FNMA BOND 24,784,120.92 24,813,936.80 5.26 0.51FNMA DISCOUNT NOTES 3,004,743.35 3,005,181.00 0.64 0.22FHLMC DISCOUNT NOTE 10,298,506.50 10,298,352.00 2.18 0.05AGENCY BOND 24,776,437.86 24,819,853.65 5.26 0.89

80,224,398.41 80,312,555.13 17.03 0.83

Medium Term Corporate NotesCORPORATE NOTES-MEDIUM TERM 8,101,977.61 8,111,455.70 1.72 0.95CORPORATE BONDS 6,119,372.43 6,102,516.00 1.29 0.70

14,221,350.04 14,213,971.70 3.01 0.85

Municipal BondsMUNICIPAL BONDS 13,373,893.60 13,368,715.70 2.84 0.53

13,373,893.60 13,368,715.70 2.84 0.53

TOTAL PORTFOLIO 471,065,166.64 471,541,458.08 100.00 0.57

kmccarty

Typewritten Text

Exhibit # 1

Money Market & Cash10.31%

Certificates of Deposit0.21%

Commercial Paper24.26%

U.S. Treasuries42.33%

U.S. Agencies17.03%

Medium Term Corporate Notes3.01%

Municipal Bonds2.84%

FOOTHILL/EASTERN TRANSPORTATION CORRIDOR AGENCYPORTFOLIO SUMMARY

INDENTURE AND NON-INDENTURE FUNDSFEBRUARY 28, 2015

MARKET VALUE $471,541,458

Exhibit # 2

Transportation Corridor AgenciesFIXED INCOME HOLDINGS - SETTLED TRADES


February 28, 2015

Date/PriceAdj.Unit Adjusted

Description Symbol Par Value Cost Total Cost S&P Moody Call Put

CERTIFICATES OF DEPOSITAMERICAN EXPRESS CENTURION C/D

02587dmm7 248,000 100.00 248,000.00 NA NA

0.750% Due 03-07-16BMW BK NORTH AMER SALT LAKE

05568p2u0 248,000 100.00 248,000.00 NA NA

0.700% Due 03-08-16DISCOVER BK GREENWOOD DEL

254671ku3 248,000 100.00 248,000.00 NA NA

0.800% Due 03-07-16GOLDMAN SACHS BK USA NEW YORK

38147JAU6 248,000 100.00 248,000.00 NA NA

0.750% Due 03-07-16CERTIFICATES OF DEPOSIT Total 992,000.00

COMMERCIAL PAPERAbbey National North America LLC Commercial Paper

0027a1qr3 3,000,000 99.99 2,999,579.88 A-1 P-1

0.210% Due 03-25-15Abbey National North America LLC Commercial Paper

0027a1s59 28,300,000 99.95 28,287,223.28 A-1 P-1

0.250% Due 05-05-15Abbey National North America LLC Commercial Paper

0027a1uv9 18,000,000 99.85 17,972,995.41 A-1 P-1

0.360% Due 07-29-15Credit Agricole CIB Commercial Paper

22533urw5 6,000,000 99.96 5,997,499.18 A-1 P-1

0.250% Due 04-30-15Credit Agricole CIB Commercial Paper

22533us12 25,000,000 99.96 24,989,407.73 A-1 P-1

0.250% Due 05-01-15GENERAL ELECTRIC CAPITAL CORP COMMERCIAL PAPER

36959jyp2 3,500,000 99.73 3,490,654.91 A-1+ P-1

0.360% Due 11-23-15Natixis Commercial Paper 63873ks40 2,200,000 99.95 2,198,943.71 A-1 P-10.270% Due 05-04-15Natixis Commercial Paper 63873ks57 25,000,000 99.95 24,987,358.46 A-1 P-10.280% Due 05-05-15TOYOTA MOTOR CREDIT CORP

89233hxp4 3,500,000 99.79 3,492,657.72 A-1+ P-1

0.317% Due 10-23-15COMMERCIAL PAPER Total 114,416,320.27

TREASURY NOTESU.S. TREASURY NOTE 912828RX0 3,592,000 100.01 3,592,261.37 AA+ Aaa0.875% Due 12-31-16U.S. TREASURY NOTE 912828gs3 42,860,000 108.13 46,344,927.90 AA+ Aaa4.500% Due 05-15-17U.S. TREASURY NOTE 912828hh6 42,860,000 108.67 46,577,224.21 AA+ Aaa4.250% Due 11-15-17

1

kmccarty

Typewritten Text

Exhibit # 3



February 28, 2015



U.S. TREASURY NOTE 912828kw9 5,500,000 103.31 5,681,861.26 AA+ Aaa3.250% Due 05-31-16U.S. TREASURY NOTE 912828lp3 42,860,000 103.89 44,528,268.13 AA+ Aaa3.000% Due 09-30-16U.S. TREASURY NOTE 912828nk2 3,607,000 103.18 3,721,846.99 AA+ Aaa2.500% Due 06-30-17U.S. TREASURY NOTE 912828ru6 10,000,000 100.48 10,047,550.44 AA+ Aaa0.875% Due 11-30-16U.S. TREASURY NOTE 912828sj0 8,700,000 99.81 8,683,588.08 AA+ Aaa0.875% Due 02-28-17U.S. TREASURY NOTE 912828td2 7,400,000 99.98 7,398,856.55 AA+ Aaa0.250% Due 07-15-15U.S. TREASURY NOTE 912828tm2 8,750,000 99.40 8,697,165.16 AA+ Aaa0.625% Due 08-31-17U.S. TREASURY NOTE 912828ue8 1,672,000 98.28 1,643,240.28 AA+ Aaa0.750% Due 12-31-17U.S. TREASURY NOTE 912828ug3 5,172,000 99.94 5,168,825.46 AA+ Aaa0.375% Due 01-15-16U.S. TREASURY NOTE 912828vk3 1,678,000 99.33 1,666,756.33 AA+ Aaa1.375% Due 06-30-18U.S. TREASURY NOTE 912828vl1 5,474,000 99.96 5,471,885.15 AA+ Aaa0.625% Due 07-15-16TREASURY NOTES Total 199,224,257.32

FHLB BONDFEDERAL HOME LOAN BANK BOND

3130a2fr2 6,200,000 100.00 6,200,285.83 AA+ Aaa

0.170% Due 06-30-15FEDERAL HOME LOAN BANK BOND

3130a2rg3 2,015,000 100.02 2,015,461.36 AA+ Aaa


313371nw2 3,000,000 100.83 3,025,045.10 AA+ Aaa


313376zq1 1,700,000 100.01 1,700,139.58 AA+ Aaa


313379dt3 495,000 100.25 496,218.14 AA+ Aaa


3133834r9 580,000 100.09 580,534.71 AA+ Aaa

0.375% Due 06-24-16FEDERAL HOME LN BKS 3133xxp43 345,000 99.24 342,366.41 AA+ Aaa3.125% Due 03-11-16FHLB BOND Total 14,360,051.14

FHLB DISCOUNT NOTEFEDERAL HOME LOAN BANK 3130a0sd3 3,000,000 100.02 3,000,538.64 AA+ Aaa0.375% Due 02-19-16FHLB DISCOUNT NOTE Total 3,000,538.64

2

kmccarty

Typewritten Text

Exhibit # 3



February 28, 2015



FNMA BONDFEDERAL NATL MTG ASSN 3135g0al7 15,300,000 101.86 15,585,164.61 AA+ Aaa2.250% Due 03-15-16FEDERAL NATL MTG ASSN 3135g0ye7 7,000,000 99.99 6,998,956.31 AA+ Aaa0.625% Due 08-26-16FEDERAL NATL MTG ASSN M/T/N

3136g1bw8 2,200,000 100.00 2,200,000.00 AA+ Aaa 04-29-15

0.550% Due 07-29-16 100.00FNMA BOND Total 24,784,120.92

FNMA DISCOUNT NOTESFEDERAL NATIONAL MTG ASSOC

3135g0nv1 3,000,000 100.16 3,004,743.35 AA+ Aaa

0.500% Due 09-28-15FNMA DISCOUNT NOTES Total 3,004,743.35

FHLMC DISCOUNT NOTEFEDERAL HOME LOAN MTG CORP DISCOUNT NOTE

313396hh9 10,300,000 99.99 10,298,506.50 AA+ Aaa

0.045% Due 06-25-15FHLMC DISCOUNT NOTE Total 10,298,506.50

AGENCY BONDFARMER MAC NOTE 30769qaa8 8,750,000 108.77 9,517,123.63 AA+ Aa15.125% Due 04-19-17FARMER MAC NOTE 31315pj42 6,300,000 99.96 6,297,343.00 NR NR0.600% Due 06-27-16FEDERAL FARM CR BKS CONS 3133ea6k9 1,000,000 100.00 1,000,000.00 AA+ Aaa0.410% Due 10-29-15FEDERAL FARM CR BKS CONS 3133eaju3 3,040,000 100.73 3,062,156.81 AA+ Aaa1.050% Due 03-28-16FEDERAL FARM CR BKS CONS 3133edhj4 1,800,000 99.99 1,799,814.42 AA+ Aaa0.930% Due 03-20-17WORLD BANK BOND 45905upf5 3,100,000 100.00 3,100,000.00 AAA Aaa1.760% Due 05-01-19AGENCY BOND Total 24,776,437.86

MUNICIPAL BONDSBAY AREA TOLL AUTH CALIF TOLL

072024de9 4,000,000 104.97 4,198,667.05 AA Aa3 04-01-16

5.000% Due 04-01-16 100.00CALIFORNIA STATE GENERAL OBLIGATION BOND

13063a5c4 1,370,000 100.42 1,375,702.76 A Aa3

5.450% Due 04-01-15NEW YORK ST URBAN DEV CORP REV

650035j33 5,800,000 99.97 5,798,170.39 AAA Aa1

0.580% Due 03-15-16

3

kmccarty

Typewritten Text

Exhibit # 3

kmccarty

Typewritten Text

Note 1

kmccarty

Typewritten Text

Note 1: The issuer is a U.S. Government Sponsored Agency. The security, which is unrated, is an authorized investment per the investment policy.



February 28, 2015



NEW YORK ST URBAN DEV CORP REV

650035ym4 1,000,000 100.14 1,001,353.40 AAA Aa1

0.550% Due 03-15-16UNIVERSITY OF CALIFORNIA REGENTS REVENUE BOND

91412GPX 1,000,000 100.00 1,000,000.00 AA Aa2

0.659% Due 05-15-16MUNICIPAL BONDS Total 13,373,893.60

CORPORATE NOTES-MEDIUM TERMMETLIFE INSTL FDG II GLOBAL RESTR

59157BAH5 3,100,000 100.02 3,100,627.65 AA- Aa3

1.625% Due 04-02-15NEW YORK LIFE GLOBAL FDG RESTR

64952WBH5 5,000,000 100.03 5,001,349.96 AA+ Aaa

0.750% Due 07-24-15CORPORATE NOTES-MEDIUM TERM Total 8,101,977.61

CORPORATE BONDSUNITED HEALTH GROUP MEDIUM TERM NOTE

91324PBS0 6,000,000 101.99 6,119,372.43 A A3

1.875% Due 11-15-16CORPORATE BONDS Total 6,119,372.43

GRAND TOTAL 422,452,219.64

4

kmccarty

Typewritten Text

Exhibit # 3

Exhibit 4

INVESTMENT DEFINITIONS

Historical Cost The original price paid for the investment.

Adjusted Cost Historical cost adjusted for the cumulative amortization of premium/discount recorded to date.

Market Value An approximation of the current trading price. The Agency obtains such data from a pricing service bureau.

Par The face value of a security which represents the amount to be paid by the issuer at maturity.

Premium The amount above the par value which is paid to purchase a security that has a coupon rate higher than the current market rate.

Discount The amount which is deducted from the par value when purchasing a security that has a coupon rate lower than the current market value.

Basis Point Unit of interest rates or yields expressed as a percentage. One hundred basis points equal one percent.

Coupon Rate The annual interest rate that a debt issuer promises to pay an investor.

Maturity Date The date on which the principal or last principal payment on a debt is due and payable.

Yield The internal rate of return on an investment. Yield encompasses the following factors: historical cost, coupon rate, interest payments and their reinvestment and maturity date.

Yield to Maturity-Cost (YTM-C) The rate of return yielded by a debt security held to maturity when both interest payments and the premium or discount paid by the investor are taken into account.

Yield to Maturity-Market (YTM-M) Same as above, except the current market price is substituted for historical cost. This rate fluctuates with the market where the YTM-Cost remains constant for each individual investment.

Fixed Income Security A debt instrument with a fixed or variable interest component and a maturity date.

Money Market Security A short-term debt instrument such as a treasury bill or commercial paper.

Interest Rate (or Market) Risk The risk that the market value of the portfolio will rise or fall when interest rates fluctuate. When interest rates rise, bond prices fall. The longer the maturity of the bond and the lower the coupon rate, the greater the vulnerability to a change in interest rates.

Credit Risk Reflects the possibility that the issuer will not make promised interest and principal payments on time or in full. Treasury securities are considered to have no credit risk.

Reinvestment Risk When interest rates fall, so do the rates at which bond interest payments can be reinvested. This reduces realized yields, since the bondholder will earn less “interest on interest.” Zero-coupon bonds do not make periodic interest payments, and as such, are not subject to reinvestment risk.

Call Risk This reflects the danger that a bond might be called or redeemed during a period of declining interest rates. When high-yielding investments are called during periods of declining interest rates, investors must then reinvest the proceeds in obligations that have lower yields. Fund managers can reduce this risk by holding issues with longer periods of call protection.

Liquidity Risk Esoteric securities and other thinly traded securities carry the danger of not being easily or quickly sold. This means that the fund manager may have to accept a sub-optimal bid for securities if a competitive market does not exist and the manager must liquidate the position on short notice.

Event Risk This reflects the chance that a leveraged buyout, takeover, or other recapitalization would materially weaken the claims of existing bondholders, sometimes to the benefit of stockholders. A classic example was the buyout of RJR Nabisco. The company’s bond prices declined after its creditworthiness was downgraded to reflect a higher debt load.

Exhibit 4


DATE: April 9, 2015 TO: Foothill/Eastern Transportation Corridor Agency Board of Directors FROM: Howard Mallen, Director of Finance SUBJECT: Annual Review of Investment Policy STAFF RECOMMENDATION: Adopt Resolution F2015-002 approving the Investment Policy for the Foothill/Eastern Transportation Corridor Agency (“F/ETCA”). SUMMARY/BACKGROUND:

The F/ETCA Board of Directors adopted the existing Investment Policy on December 12, 2013. While no longer required by state statute, an annual review of the policy is required per the Review Section of the agency’s Investment Policy and is a recommended practice by the California Debt and Investment Advisory Commission. The objective of the review is to ensure consistency between the agency’s Investment Policy and the California Government Code (“State Code”). A carefully drafted and regularly reviewed Investment Policy helps protect agency assets and sets the parameters for achieving the economic and financial goals of the agency. The annual review is a best practice recommendation and its approval at a public meeting signifies that the Board shares fiduciary responsibility with the Treasurer and agency staff. DISCUSSION: The annual review of the agency’s Investment Policy is generally presented to the Board of Directors each December, subsequent to the close of California’s annual legislative session and bill signing by the Governor. The review was delayed this year to enable the agency’s new investment advisor, Chandler Asset Management, the opportunity to evaluate the agency’s policy and recommend best practices. The review will return to its normal cycle in December 2015.

Annual Review of Investment Policy File No. 2015F-013 April 9, 2015 Page 2 The primary objective for the investment of agency funds is to safeguard principal. The secondary objectives are to meet the liquidity needs of the agency and achieve reasonable rates of return. As of February 28, 2015, the agency’s portfolio consisted of approximately $293 million, or 62 percent, indentured funds and $178 million, or 38 percent, non-indentured funds. The indentured funds are governed by the permitted investments specified within the 2013 and 2015 bond indentures. The investment horizons for these funds tend to be longer-term, thereby matching assets to liabilities. The non-indentured funds are governed by the agency’s investment policy in accordance with the State Code. These funds are limited to a five-year maturity as required by the State Code and the Investment Policy. While there were no significant changes to the State Code that impacted the agency’s Investment Policy, the Staff and Chandler Asset Management’s review of the Investment Policy generated the following recommended changes:

• Section I. Purpose o Clarification that the policy governs all funds except those governed by other

agreements (e.g., indenture funds).

• Section III. Delegation of Authority o Expansion of language regarding the engagement of an external investment

advisor, the addition of the external investment advisor as an authorized trade approver and granting the external investment advisor the ability to purchase and sell investment securities. Please note that investment transaction approval still requires one additional approved agency staff member.

• Section IV. Objectives

o C. Return on Investment – Portfolio performance to be evaluated relative to a market benchmark, if appropriate.

o E. Periodic Review – The agency has contracted with Chandler Asset Management, a U.S. Securities and Exchange Commission Registered Investment Advisor with a fiduciary duty to the agency and as such, per best practice, the agency staff and Chandler Asset Management will develop investment strategies as governed by California State Code, bond indenture requirements and the Board of Directors’ approved Investment Policy. Investment activities will then be reviewed quarterly by the Joint Strategic Planning Ad Hoc Committee and annually by the Board of Directors.

Annual Review of Investment Policy File No. 2015F-013 April 9, 2015 Page 3

• Section V. Competitive Bidding o Replacement of section based upon best practice. Retitled to “Authorized

Financial Institutions, Depositories, and Broker/Dealers” Primary changes include: Replacement of “3 bid” requirement with “competitive bid wherever

possible” given new security issuance and other instances where 3 bids are not always possible.

Treasurer is responsible for evaluating and selecting appropriate investment counterparties based upon expanded policy language. Treasurer may rely upon external investment advisor for selection of counterparties.

• Section VII. Reporting

o Monthly transaction reporting to the Board of Directors has been added.

• Section IX. Definition of Terms o Clarification of a number of definitions

The revisions were discussed in summary form with the Joint Strategic Planning Ad Hoc Committee on March 12, 2015. Attached to this report as Exhibit 1 is the recommended revised Investment Policy. Also attached is Exhibit 2 which shows the revisions made to the existing Investment Policy. BUDGET/FEES: N/A

CONCLUSION:

Staff and Chandler Asset Management have reviewed the existing F/ETCA Investment Policy and the California Government Code and recommend the Investment Policy be revised. The revisions were discussed in summary form with the Joint Strategic Planning Ad Hoc Committee on March 12, 2015. Staff recommends the adoption of Resolution F2015-002, approving the Investment Policy for the Foothill/Eastern Transportation Corridor Agency. Attachments

Exhibit 1 Foothill/Eastern Transportation Corridor Agency

Statement of Investment Policy April 9, 2015

I. Purpose

The purpose of this document is to set guidelines for the investment of the Agency’s cash. This policy is intended to cover all funds held and invested by the Agency (with the exception of funds governed by other agreements; e.g., indenture funds).

The Agency’s ultimate goal is to 1) safeguard the assets, 2) provide liquidity, and 3) enhance the economic status of the Agency. This policy supersedes the previous Investment Policy dated December 12, 2013.

II. Investment Authorization

The investment of the Agency’s cash shall fall under the responsibility of the Agency’s Treasurer, whois the Chief Financial Officer.

III. Delegation of Authority

Within the Agency, the responsibility for the day-to-day investments shall lie with the Manager,Treasury Operations, under the supervision of the Director of Finance and the Chief Financial Officer.

The Agency may engage the services of one or more external investment advisers, who are registeredunder the Investment Advisers Act of 1940, to assist in the management of the Agency’s investmentportfolio in a manner consistent with the Agency’s objectives. External investment advisers may begranted discretion to purchase and sell investment securities in accordance with this investment policy.

All internal investments with a maturity of more than 60 days or a face amount of $5 million or moremust be approved by two of the following investment team members: the external investment advisor,the Manager, Treasury Operations, the Director of Finance, the Chief Financial Officer, or the ChiefExecutive Officer.

IV. Objectives

A. Safety of Principal

Safety of principal is the primary objective of the Agency. Each investment transaction shall seek to ensure that capital losses are avoided, whether from securities default, broker-dealer default, or erosion of market value. The Agency shall seek to preserve principal by mitigating the two primary types of risk, credit risk and market risk.

1. Credit Risk

Credit risk, the risk of loss due to failure of the issuer to meet scheduled interest orprincipal payments, shall be mitigated by investing only in securities issued bycompanies with long-term debt ratings in one of the three highest ratings categories by atleast two nationally recognized statistical rating organizations (NRSRO).

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Exhibit 1



Certain securities may have more stringent ratings requirements which are detailed in Section VI. -Authorized Investments.

If an investment that is held in the agency’s portfolio is downgraded and no longer in compliance with these guidelines, the Manager, Treasury Operations will notify the Director of Finance immediately and provide an evaluation of the increased risk and potential loss. The Director of Finance shall determine a course of action and notify the Board of Directors in writing as soon as practical.

If an investment is put on notice for possible rating downgrade, it will be treated the same as investments that have already been downgraded.

2. Market Risk

Market risk, the risk of market value fluctuations due to overall changes in the generallevel of interest rates, shall be mitigated by matching maturity dates, to the extentpossible, with the Agency’s expected cash flow draws or by investing such that theduration of the portfolio matches the duration of the respective cash flows within a rangeof plus or minus 10%. It is explicitly recognized herein, however, that in a diversifiedportfolio, occasional measured losses are inevitable and must be considered within thecontext of the overall investment return.

B. Liquidity

The Agency shall strive to maintain the level of investment of all idle funds as near 100% as possible through monitoring projected cash flows.

C. Return on Investment

The Agency’s investment portfolio shall be structured to meet the Agency’s scheduled cash flow needs and to attain an acceptable rate of return over the life of the investment program. The acceptable rate of return shall be determined by the Agency’s investment staff with consideration given to the following:

1. The Treasurer shall monitor and evaluate the portfolio’s performance relative to amarket benchmark, if appropriate. The Treasurer shall select an appropriate,readily available index to use as a market benchmark.

2. The ability to efficiently meet the Agency’s expected draw schedule, withoutundue risk to principal.

3. The average modified duration of the investment portfolio over the life of theinvestment program.

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Exhibit 1



4. The overall credit quality of the portfolio.

D. Safekeeping

Securities purchased by the Agency, including collateral on repurchase agreements, shall be held in safe-keeping by a third-party bank trust department, acting as agent for the Agency under the terms of a custody agreement or Indenture of Trust, executed by the Agency.

E. Periodic Review

The Agency’s investment activities shall be reviewed by the Joint Strategic Planning Ad Hoc Committee quarterly and the Board of Directors annually.

V. Authorized Financial Institutions, Depositories, and Broker/Dealers

To the extent practical, the Treasurer shall endeavor to complete investment transactions using a competitive bid process whenever possible. The Agency’s Treasurer will determine which financial institutions are authorized to provide investment services to the Agency. It shall be the Agency’s policy to purchase securities only from authorized institutions and firms.

The Treasurer shall maintain procedures for establishing a list of authorized broker/dealers and financial institutions which are approved for investment purposes that are selected through a process of due diligence determined by the Agency. These institutions may include "primary" dealers or regional dealers that qualify under Securities and Exchange Commission (SEC) Rule 15c3-1 (uniform net capital rule).

Institutions eligible to transact investment business with the Agency include: • Primary government dealers as designated by the Federal Reserve Bank and non-primary

government dealers.

• Nationally or state-chartered banks.

• The Federal Reserve Bank.

• Direct issuers of securities eligible for purchase.

Selection of financial institutions and broker/dealers authorized to engage in transactions will be at the sole discretion of the Agency, except where the Agency utilizes an external investment adviser in which case the Agency may rely on the adviser for selection.

All financial institutions which desire to become qualified bidders for investment transactions (and which are not dealing only with the investment adviser) must supply the Treasurer with a statement certifying that the institution has reviewed the California Government Code, Section 53600 et seq. and the Agency’s investment policy.

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Exhibit 1



Public deposits will be made only in qualified public depositories as established by State law. Deposits will be insured by the Federal Deposit Insurance Corporation, or, to the extent the amount exceeds the insured maximum, will be collateralized in accordance with State law.

VI. Authorized Investments

This policy is designed to insure compliance with the California Government Code. The foundation ofthe California Government Code is to allow investments in basic money market and fixed incomesecurities. This policy has been tailored for the Agency's current operations and may set forthrestrictions that exceed the requirements of the aforementioned documents.

General Requirements:

A. Securities must be denominated in U.S. dollars.

B. Surplus revenues, i.e. general funds not required for immediate expenditures, can be invested no longer than five years. Certain securities have shorter maturity requirements.

C. Notwithstanding anything herein to the contrary no more than 5% of the Agency’s portfolio may be deposited with or invested in securities issued by any one corporate, financial, or municipal issuer with the exception of securities and deposits issued or guaranteed by the U.S. Treasury, federal agency institutions, and government sponsored enterprises.

D. Percentage limitations on specific classes of securities shall be based on the purchase price of the security as compared to the market value of the portfolio at the time of purchase. Subsequent changes in market value shall not force sales in a portfolio to avoid exceeding the prescribed allocation level.

U.S. Treasury Obligations

A. These securities include treasury bills, notes, certificates of deposit up to the current FDIC insured limit per bank, branch of bank, trust company or national banking association, bonds and government obligations for which the full faith and credit of the United States are pledged for the payment of principal and interest.

B. The Agency may invest up to 100% of its portfolio in these securities.

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Exhibit 1



Federal Agency and U.S. Government Sponsored Enterprise Notes and Bonds

A. These securities include federal agency or United States government-sponsored enterprise obligations, participations, or other instruments, including those issued by or fully guaranteed as to principal and interest by federal agencies or United States government-sponsored enterprises.

B. Callable securities are permitted as long as the call price equals at least par plus accrued interest and the stated final maturity is within policy guidelines.

C. The Agency may invest up to 100% of its portfolio in these securities. However, no more than 35% of the portfolio may be invested in the securities of any one Agency at the time of purchase.

Federal Agency Mortgage-Backed Securities

A. These securities include mortgage pass-through securities, collateralized mortgage obligations, mortgage-backed and other pay-through bonds.

B. All securities must have a legal final maturity or final expected paydown date of five years or less. All mortgage-backed securities purchased shall be stress-tested prior to purchase for a 300 basis point shift in interest rates (both up and down) to ensure that this requirement would still be met under such a scenario. In no case may the duration of the mortgage-backed security, under a zero prepay scenario, exceed the final expected draw date of the portfolio.

C. The Agency may invest up to 20% of its portfolio in these securities. However, no more than 15% of the portfolio may be invested in the mortgage-backed and asset-backed securities of any one Agency at the time of purchase.

D. These securities must be rated in the second highest ratings category by an NRSRO.

Municipal Securities

A. These securities are limited to (i) obligations of the State of California or any local agency within the state, including bonds payable solely out of revenues from a revenue producing property owned, controlled or operated by the state or any local agency or by a department, board, agency or authority of the state or any local agency and (ii) registered treasury notes or bonds of any of the other 49 United States in addition to California, including bonds payable solely out of the revenues from a revenue-producing property owned, controlled, or operated by a state or by a department, board, agency, or authority of any of the other 49 United States, in addition to California.


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Exhibit 1



Certificates of Deposit

A. Certificates of Deposit (CDs) must be issued by a nationally or state chartered bank, savings association, federal association, state or federal credit union, or state or federally-licensed branch of a foreign bank (issuing depository institutions).

B. The issuing depository institution may submit the funds to a Certificate of Deposit Account Registry Service (CDARS), a private sector entity that assists in the placement of certificates of deposit with one or more banks, savings bank, savings and loan associations, or credit unions that are located in the United States. The Agency may invest up to 30 % of its portfolio in deposits placed by private sector placement entities.

C. The Agency may not invest in certificates of deposit issued by a state or federal credit union if any of the Agency’s Board or Staff also serves on a board or committee of said credit union.

D. The full amount of principal and the interest that may be accrued during the maximum term of a certificate of deposit shall at all times be insured by the Federal Deposit Insurance Corporation or the National Credit Union Administration. The Agency may invest up to 100 percent of its total portfolio in CDs.

Negotiable Certificates of Deposit

A. These certificates must be issued by a nationally or state chartered bank, savings association, federal association, state or federal credit union, or state or federally-licensed branch of a foreign bank.

B. The Agency may not invest in negotiable certificates of deposit issued by a state or federal credit union if any of the Agency’s Board or Staff also serves on a board or committee of said credit union.

C. The Agency may invest up to 30% of its portfolio in these certificates.

Bankers’ Acceptances

A. Must be drawn on and accepted by a bank which carries a short-term rating in the highest short-term ratings category an NRSRO.

B. The Agency may not purchase a bankers’ acceptance with a maturity greater than 180 days.

C. The Agency may invest up to 30% of its portfolio in these securities.

Commercial Paper

A. The commercial paper must be issued by an issuer who (i) is organized and operating inside the United States, (ii) has total assets in excess of $500 million, and (iii) has debt, if any, that is rated

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Exhibit 1



in third highest ratings category by an NRSRO or commercial paper must be issued by an issuer who (i) is organized within the United States as a special purpose corporation, trust, or limited liability company and (ii) has program-wide credit enhancements including, but not limited to, overcollateralization, letters of credit, or surety bond.

B. These securities must carry the highest short-term rating by an NRSRO.

C. The Agency may not purchase commercial paper with a maturity greater than 270 days.

D. The Agency may invest up to 25% of its portfolio in these securities. However, the Agency is restricted to 10% of the outstanding paper of an issuing corporation.

Repurchase Agreements

A. The Agency may only enter into repurchase agreements with those banks or broker dealers with which it has entered into a master repurchase agreement outlining specific terms and conditions.

B. Repurchase agreements shall be made only with primary dealers of the Federal Reserve Bank of New York.

C. The term of repurchase agreements shall be 90 days or less.

D. If the repurchase agreement is for a period over 30 days, the collateral must be marked to market at least weekly.

E. The collateral must be an Agency authorized investment.

F. The collateral used for the repurchase agreements shall be equal to at least 102% of the value of the repurchase agreement.

G. Repurchase agreements are limited to 25% of the portfolio, based on original cost at the time of purchase.

Medium-Term Maturity Corporate Notes

A. Corporate Notes must be issued by corporations organized and operating within the United States or by depository institutions licensed by the United States or any state and operating within the United States.

B. Long-term debt rating shall be in one of the three highest ratings categories by two NRSROs.


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Exhibit 1



State of California Local Agency Investment Fund (LAIF)

A. Investments in LAIF may not exceed the lesser of $50 million or 15% of the portfolio at the time the investment is made.

County or Local Agency Investment Pools

A. May not exceed 15% of the portfolio at the time of investment.

Asset-Backed Securities

A. These securities may be backed by installment sales contracts, credit card receivables or other assets.

B. Asset-backed commercial paper is evaluated as commercial paper.

C. All securities must have a legal final maturity or final expected paydown date of five years or less. In no case may the duration of the asset-backed security, under a zero prepay scenario, exceed the final expected draw date of the portfolio.

D. The issuer of these securities must have an underlying rating of “A” or better from two nationally recognized rating agencies and the purchased securities must be rated ‘AAA’ by at least one nationally recognized rating agency.

E. Purchases of asset-backed and mortgage-backed securities are limited to 20% of the portfolio, based on the original cost, at the time of purchase.

Shares in a California Common Law Trust

A. Established pursuant to Chapter 5 of Division 7, Title 1 of the Government Code of the State of California (such as the California Asset Management Program (CAMP)).

B. Must be rated in the highest rating category by a NRSRO.

C. Agency may invest up to 20 percent of its total portfolio in these securities.

Money Market Mutual Funds

A. Must be registered with the Securities and Exchange Commission, meeting the requirements of Rule 2a-7 promulgated under the Investment Company Act of 1940.

B. Must either (i) have the highest applicable rating issued by two NRSROs or (ii) be managed by an investment advisor registered with the Securities and Exchange Commission with not less than five years experience and with assets under management in excess of $500,000,000 and be rated in the highest ratings category by an NRSRO.

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Exhibit 1



C. Investments in this category may not exceed 20% of the portfolio in effect at the time the investment is made and the purchase price of shares may not include commission.

VII. Reporting

Staff shall render a quarterly report to the Board detailing the types of investments in the portfolio, thedollar amount invested in each category, the rate of interest in each category and the total portfolio rateof interest. On a monthly basis the Staff shall submit a report to the Board detailing transactions for themonth.

VIII. Review

This investment policy shall be reviewed at least annually to ensure its consistency with the overallobjectives of preservation of principal, liquidity and return, and its relevance to current law and financialeconomic trends.

IX. Definition of Terms


Debt obligations that represent a claim on the cash flows from loans, leases, credit card debt, or acompany’s receivables through the process known as securitization. Cash flows from loans, leases,credit cards, or receivables provide collateral for the investor.

Bankers Acceptances (BAs)

Time drafts which a bank “accepts” as its financial responsibility as part of a trade finance process.These short-term notes are sold at a discount and are obligations of the drawer (the bank’s trade financeclient) as well as the bank. Once accepted, the bank is irrevocably obligated to pay the BA uponmaturity if the drawer does not.

Certificate of Deposit Account Registry Service (CDARS)

A program designed to assist public entities with the investment of large deposits into certificates of deposit (CDs) while staying below FDIC insurance limits at any given bank. CDARS is a program that eliminates the need to go from bank to bank in order to purchase a number of CDs by using a private sector placement service. After a bid process with at least three broker/dealers or banks has been completed, a deposit is made to the winning bidder. The funds are ultimately transferred to an FDIC insured bank that spreads the money across several banks, ensuring that the amount of money in each bank is never above the FDIC insurance limit. As part of the CDARS program, the agency conducts business with a single bank which helps eliminates additional paperwork associated with purchasing and accounting for multiple CDs from multiple banks.

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Exhibit 1



Commercial Paper (CP)

Unsecured promissory notes issued by companies and government entities at a discount. Commercial paper is negotiable, although it is typically held to maturity. The maximum maturity is 270 days.


Investment pools hold and invest the funds of multiple local investors and issue shares to those investors. Permitted investment sectors are predetermined by the local agencies who participate within the fund. The underlying assets within the pool provide credit support.

Duration

The weighted average time to maturity of a bond where the weights are the present values of the future cash flows. Duration measures the price sensitivity of a bond to changes in interest rates.

Federal Agencies and U.S. Government Sponsored Enterprises

U.S. Government related organizations, the largest of which are government financial intermediaries assisting specific credit markets (housing, agriculture). Often simply referred to as “Agencies,” they include:

• Federal Home Loan Banks (FHLB)• Government National Mortgage Association (GNMA)• Federal Agricultural Mortgage Corporation (Farmer Mac)• Federal National Mortgage Association (FNMA)• Federal Home Loan Mortgage Corporation (FHLMC)• Federal Housing Administration (FHA)• Federal Farm Credit Banks (FFCB)• Tennessee Valley Authority (TVA)• International Bank for Reconstruction and Development (World Bank)• Inter-American Development Bank• Export Import Bank• United States Postal Service• United States Railway Association• Farm Credit Financial Assistance Corporation• Financing Corporation• Federal Land Bank

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Exhibit 1



Federal Agency Mortgage Backed Securities

An asset-backed security is secured by a mortgage or a pool of mortgages. Mortgages must originate from a regulated and authorized financial institution. These securities usually pay periodic payments that are similar to coupon payments.


Notes with a final maturity of 5 years or less issued by corporations organized and operating within the United States or by depository institutions licensed by the United States or any state and operating within the United States.


Money market mutual funds are investment pools that invest exclusively in short-term investments. Money market funds seek the preservation of capital as a primary goal while maintaining a high degree of liquidity and providing income representative of the market for short-term investments. Money Market Funds are secured by the underlying securities within the pool.

Mortgage-Backed or Pass-Through Securities

Pass-through securities are instruments by which the cash flow from the mortgages are passed through as principal and interest payments to the investor. Though these securities may contain a guarantee from the issuer, they are usually a package of mortgage assets being sold, not a debt obligation of the issuer.


Securities issued by state and local governments.

Nationally Recognized Statistical Rating Organization (NRSRO)

A credit rating agency used by the Securities and Exchange Commission in the United States for regulatory purposes. Credit rating agencies provide assessments of an investment's risk.

The issuers of investments, especially debt securities, pay credit rating agencies to provide them with ratings.

Negotiable Certificates of Deposit (Negotiable CD)

A negotiable (marketable or transferable) receipt for a time deposit at a bank or other financial institution for a fixed time and interest rate.

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Exhibit 1

http://financial-dictionary.thefreedictionary.com/Credit+Rating+Agency

http://financial-dictionary.thefreedictionary.com/Securities+and+Exchange+Commission

http://financial-dictionary.thefreedictionary.com/Regulatory

http://financial-dictionary.thefreedictionary.com/Investment

http://financial-dictionary.thefreedictionary.com/Risk

http://financial-dictionary.thefreedictionary.com/Debt+Securities



Repurchase Agreements (Repos)

A repurchase agreement is a purchase of securities under a simultaneous agreement to sell these securities back at a fixed price on some future date. This is in essence a collateralized investment with the difference between the purchase price and sales price determining the earnings. Overnight terms are the most common.

State of California Local Agency Investment Fund

Investment pool which holds and invests the funds of local agency investors in the State of California and issues shares to investors.

U.S. Treasuries

Obligations of the U.S. Government including:

* T-Bills: 3-month, 6-month and one-year securities issued and traded at a discount.* Treasury Notes and Bonds: interest-bearing instruments issued with maturities of two to thirty

years.* STRIPS: Zero-coupon securities. Each STRIP was originally an interest payment or principal

payment on a T-bond.

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Exhibit 1

Exhibit 2

Foothill/Eastern Transportation Corridor Agency Statement of Investment Policy

December 12, 2013 April 9, 2015

I. Purpose

The purpose of this document is to set guidelines for the investment of the Agency’s cash. ItThis policy is intended that this policy to cover all funds (except bond proceedsheld and retirement invested by the Agency (with the exception of funds). The investment of bond proceeds will be governed by the provisions of the relevant bond documents (see Exhibit Aother agreements; e.g., indenture funds).

The Agency’s ultimate goal is to 1) safeguard the assets, 2) provide liquidity, and 3) enhance the economic status of the Agency. This policy supersedes the previous Investment Policy dated November 8, 2012December 12, 2013.

II. Investment Authorization

The investment of the Agency’s cash shall fall under the responsibility of the Agency’s Treasurer,whichwho is the Chief Financial Officer.

III. Delegation of Authority

Within the Agency, the responsibility for the day-to-day investments shall lie with the Manager,Treasury ManagerOperations, under the supervision of the Director of Finance and the Chief FinancialOfficer.

The Agency may engage the services of one or more external investment advisers, who are registeredunder the Investment Advisers Act of 1940, to assist in the management of the Agency’s investmentportfolio in a manner consistent with the Agency’s objectives. External investment advisers may begranted discretion to purchase and sell investment securities in accordance with this investment policy.

All internal investments with a maturity of more than 60 days or a face amount of $5 million or moremust be approved by two of the following investment team members: the external investment advisor,the Manager, Treasury ManagerOperations, the Director of Finance, the Chief Financial Officer, or theChief Executive Officer.

Outside portfolio managers must certify in writing that they will purchase securities from broker/dealersor financial institutions in compliance with Sections 53635 and 53601 of the California Government Code, this policy, the Master Indenture of Trust, and other adopted policy guidelines.

IV. Objectives

A. Safety of Principal

Safety of principal is the primary objective of the Agency. Each investment transaction shall seek to ensure that capital losses are avoided, whether from securities default, broker-dealer default, or erosion of market value. The Agency shall seek to preserve principal by mitigating the two primary types of risk, credit risk and market risk.

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Exhibit 2


Statement of Investment Policy December 12, 2013

April 9, 2015

1. Credit Risk

Credit risk, the risk of loss due to failure of the issuer to meet scheduled interest orprincipal payments, shall be mitigated by investing only in securities issued bycompanies with long-term debt ratings in one of the three highest ratings categories by atleast two nationally recognized statistical rating organizations (NRSRO).

Certain securities may have more stringent ratings requirements which are detailed inSection VI. -Authorized Investments.

If an investment that is held in the agency’s portfolio is downgraded and no longer incompliance with these guidelines, the Manager, Treasury ManagerOperations will notifythe Director of Finance immediately and provide an evaluation of the increased risk andpotential loss. The Director of Finance shall determine a course of action and notify theBoard of Directors in writing as soon as practical.

If an investment is put on notice for possible rating downgrade, it will be treated the sameas investments that have already been downgraded.

2. Market Risk

Market risk, the risk of market value fluctuations due to overall changes in the generallevel of interest rates, shall be mitigated by matching maturity dates, to the extentpossible, with the Agency’s expected cash -flow draws or by investing such that theduration of the portfolio matches the duration of the respective cash -flows within a rangeof plus or minus 10%. It is explicitly recognized herein, however, that in a diversifiedportfolio, occasional measured losses are inevitable and must be considered within thecontext of the overall investment return.

B. Liquidity

The Agency shall strive to maintain the level of investment of all idle funds as near 100% as possible through monitoring projected cash flows.

C. Return on Investment

The Agency’s investment portfolio shall be structured to meet the Agency’s scheduled cash -flow needs and to attain an acceptable rate of return over the life of the investment program. The acceptable rate of return shall be determined by the Agency’s investment staff with consideration given to the following:

1. The investment manager’s ability to exceed over time the Agency’s initialtargeted rate of return.

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Exhibit 2



April 9, 2015

1. The Treasurer shall monitor and evaluate the portfolio’s performance relative to amarket benchmark, if appropriate. The Treasurer shall select an appropriate, readily available index to use as a market benchmark.

2. The ability to efficiently meet the Agency’s expected draw schedule, withoutundue risk to principal.

3. The average modified duration of the investment portfolio over the life of theinvestment program.

4. The overall credit quality of the portfolio.

D. Safekeeping

Securities purchased by the Agency, including collateral on repurchase agreements, shall be held in safe-keeping by a third-party bank trust department, acting as agent for the Agency under the terms of a custody agreement or Indenture of Trust, executed by the Agency.

E. Periodic Review

The Board shall review the Agency’s investment activities quarterly. Any significant changes to the Agency’s investment practices or alternative investment strategies will be agendized as a business item for the Board of Directors. The Agency’s investment activities shall be reviewed by the Joint Strategic Ad Hoc Committee quarterly and the Board of Directors annually.

V. Competitive Bidding

To ensure that the Agency maximizes its return on investments, three bids or offers must be obtained either directly from the issuer or from a qualified purchase agent. The California Government Code defines qualified purchase agents as state-licensed broker/dealers, national or state chartered banks, and federal or state associations. The Agency will select the bid or offer which provides the maximum economic benefit to the Agency while meeting the necessary investment requirements. In cases where it is not possible to obtain three bids or offers, the Treasury Manager shall document the price paid and provide information detailing how “fair value” was determined.

Broker/dealers that meet qualifications to provide brokerage services for the Agency shall be presented to the Board on an annual basis in conjunction with the annual review of the Investment Policy. All approved broker/dealers and outside portfolio managers who conduct business with the Agency will receive a copy of the Investment Policy and the Permitted Investment sections of the Indenture and will provide written acknowledgment of these items.

Broker/dealers firms that were not approved by the Board in the most recent investment policy update may apply for provisional status classification. Broker/dealers who are granted this status are authorized

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Exhibit 2



April 9, 2015

to perform the same services as board approved broker/dealer firms. During the provisional status period, the applicant will be evaluated by the Treasury Manager. The firm may apply for the approved classification no later than two months prior to the next scheduled investment policy review. All broker/dealer firms will be reassessed annually.

The treasury manager will not do business with a firm which has made a political contribution to a governmental securities issuer in an amount exceeding the limitations contained in Rule G-37 of the Municipal Securities Rulemaking Board. Should staff deem it prudent to utilize the services of a bidding agent to conduct a formal competitive bidding process; the list of solicited providers will not be limited to the Board approved list of broker/dealers. V. Authorized Financial Institutions, Depositories, and Broker/Dealers

To the extent practical, the Treasurer shall endeavor to complete investment transactions using a competitive bid process whenever possible. The Agency’s Treasurer will determine which financial institutions are authorized to provide investment services to the Agency. It shall be the Agency’s policy to purchase securities only from authorized institutions and firms.

The Treasurer shall maintain procedures for establishing a list of authorized broker/dealers and financial institutions which are approved for investment purposes that are selected through a process of due diligence determined by the Agency. These institutions may include "primary" dealers or regional dealers that qualify under Securities and Exchange Commission (SEC) Rule 15c3-1 (uniform net capital rule).

Institutions eligible to transact investment business with the Agency include:

• Primary government dealers as designated by the Federal Reserve Bank and non-primarygovernment dealers.

• Nationally or state-chartered banks.

• The Federal Reserve Bank.

• Direct issuers of securities eligible for purchase.

Selection of financial institutions and broker/dealers authorized to engage in transactions will be at the sole discretion of the Agency, except where the Agency utilizes an external investment adviser in which case the Agency may rely on the adviser for selection.

All financial institutions which desire to become qualified bidders for investment transactions (and which are not dealing only with the investment adviser) must supply the Treasurer with a statement certifying that the institution has reviewed the California Government Code, Section 53600 et seq. and the Agency’s investment policy.

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Exhibit 2



April 9, 2015

Public deposits will be made only in qualified public depositories as established by State law. Deposits will be insured by the Federal Deposit Insurance Corporation, or, to the extent the amount exceeds the insured maximum, will be collateralized in accordance with State law.

VI. Authorized Investments

This policy is designed to insure compliance with the California Government Code. The foundation ofthe California Government Code is to allow investments in basic money market and fixed incomesecurities (Exhibit B). This policy has been tailored for the Agency's current operations and may setforth restrictions that exceed the requirements of the aforementioned documents. See Exhibit C for asummary of authorized investments.

General Requirements:

A. Securities must be denominated in U.S. dollars.

B. Surplus revenues, i.e. general funds not required for immediate expenditures, can be invested no longer than five years. Certain securities have shorter maturity requirements.

C. Notwithstanding anything herein to the contrary no more than 5% of the Agency’s portfolio may be deposited with or invested in securities issued by any one corporate, financial, or municipal issuer with the exception of securities and deposits issued or guaranteed by the U.S. Treasury, federal agency institutions, and government sponsored enterprises.

D. Percentage limitations on specific classes of securities shall be based on the purchase price of the security as compared to the market value of the portfolio at the time of purchase. Subsequent changes in market value shall not force sales in a portfolio to avoid exceeding the prescribed allocation level.

U.S. Treasury Obligations

A. These securities include treasury bills, notes, certificates of deposit up to the current FDIC insured limit per bank, branch of bank, trust company or national banking association, bonds and government obligations for which the full faith and credit of the United States are pledged for the payment of principal and interest.


Federal Agency and U.S. Government Sponsored Enterprise Notes and Bonds

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Exhibit 2



April 9, 2015

A. These securities include federal agency or United States government-sponsored enterprise obligations, participations, or other instruments, including those issued by or fully guaranteed as to principal and interest by federal agencies or United States government-sponsored enterprises.

B. Callable securities are permitted as long as the call price equals at least par plus accrued interest and the stated final maturity is within policy guidelines.

C. The Agency may invest up to 100% of its portfolio in these securities. However, no more than 35% of the portfolio may be invested in the securities of any one Agency at the time of purchase.

Federal Agency Mortgage-Backed Securities

A. These securities include mortgage pass-through securities, collateralized mortgage obligations, mortgage-backed and other pay-through bonds.

B. All securities must have a legal final maturity or final expected paydown date of five years or less. All mortgage-backed securities purchased shall be stress-tested prior to purchase for a 300 basis point shift in interest rates (both up and down) to ensure that this requirement would still be met under such a scenario. In no case may the duration of the mortgage-backed security, under a zero prepay scenario, exceed the final expected draw date of the portfolio.

C. The Agency may invest up to 20% of its portfolio in these securities. However, no more than 15% of the portfolio may be invested in the mortgage-backed and asset-backed securities of any one Agency at the time of purchase.

D. These securities must be rated in the second highest ratings category by an NRSRO.


A. These securities are limited to (i) obligations of the State of California or any local agency within the state, including bonds payable solely out of revenues from a revenue producing property owned, controlled or operated by the state or any local agency or by a department, board, agency or authority of the state or any local agency and (ii) registered treasury notes or bonds of any of the other 49 United States in addition to California, including bonds payable solely out of the revenues from a revenue-producing property owned, controlled, or operated by a state or by a department, board, agency, or authority of any of the other 49 United States, in addition to California.


Certificates of Deposit

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Exhibit 2



April 9, 2015

A. Certificates of Deposit (CDs) must be issued by a nationally or state chartered bank, savings association, federal association, state or federal credit union, or state or federally-licensed branch of a foreign bank (issuing depository institutions).

B. The issuing depository institution may submit the funds to a Certificate of Deposit Account Registry Service (CDARS), a private sector entity that assists in the placement of certificates of deposit with one or more banks, savings bank, savings and loan associations, or credit unions that are located in the United States. The Agency may invest up to 30 % of its portfolio in deposits placed by private sector placement entities.

C. The Agency may not invest in certificates of deposit issued by a state or federal credit union if any of the Agency’s Board or Staff also serves on a board or committee of said credit union.

D. The full amount of principal and the interest that may be accrued during the maximum term of a certificate of deposit shall at all times be insured by the Federal Deposit Insurance Corporation or the National Credit Union Administration. The Agency may invest up to 100 percent of its total portfolio in CDs.

Negotiable Certificates of Deposit

A. These certificates must be issued by a nationally or state chartered bank, savings association, federal association, state or federal credit union, or state or federally-licensed branch of a foreign bank.

B. The Agency may not invest in negotiable certificates of deposit issued by a state or federal credit union if any of the Agency’s Board or Staff also serves on a board or committee of said credit union.

C. The Agency may invest up to 30% of its portfolio in these certificates.

Bankers’ Acceptances

A. Must be drawn on and accepted by a bank which carries a short-term rating in the highest short-term ratings category an NRSRO.

B. The Agency may not purchase a bankers’ acceptance with a maturity greater than 180 days.


Commercial Paper

A. The commercial paper must be issued by an issuer who (i) is organized and operating B.A. Insideinside the United States, (ii) has total assets in excess of $500 million, and (iii) has

debt, if any, that is rated in third highest ratings category by an NRSRO or commercial paper

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Exhibit 2



April 9, 2015

must be issued by an issuer who (i) is organized within the United States as a special purpose corporation, trust, or limited liability company and (ii) has program-wide credit enhancements including, but not limited to, overcollateralization, letters, of credit, or surety bond.

C.B. These securities must carry the highest short-term rating by an NRSRO.

D.C. The Agency may not purchase commercial paper with a maturity greater than 270 days.

E.D. The Agency may invest up to 25% of its portfolio in these securities. However, the Agency is restricted to 10% of the outstanding paper of an issuing corporation.

Repurchase Agreements

A. The Agency may only enter into repurchase agreements with those banks or broker dealers with which it has entered into a master repurchase agreement outlining specific terms and conditions.

B. Repurchase agreements shall be made only with primary dealers of the Federal Reserve Bank of New York.

C. The term of repurchase agreements shall be 90 days or less.

D. If the repurchase agreement is for a period over 30 days, the collateral must be marked to market at least weekly.

E. The collateral must be an Agency authorized investment.

F. The collateral used for the repurchase agreements shall be equal to at least 102% of the value of the repurchase agreement.

G. Repurchase agreements are limited to 25% of the portfolio, based on original cost at the time of purchase.


A. Corporate Notes must be issued by corporations organized and operating within the United States or by depository institutions licensed by the United States or any state and operating within the United States.

B. Long-term debt rating shall be in one of the three highest ratings categories by two NRSROs.


State of California Local Agency Investment Fund (LAIF)

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Exhibit 2



April 9, 2015

A. Investments in LAIF may not exceed the lesser of $50 million or 15% of the portfolio at the time the investment is made.


A. May not exceed 15% of the portfolio at the time of investment.


A. These securities may be backed by installment sales contracts, credit card receivables or other assets.

B. Asset-backed commercial paper is evaluated as commercial paper.

C. All securities must have a legal final maturity or final expected paydown date of five years or less. In no case may the duration of the asset-backed security, under a zero prepay scenario, exceed the final expected draw date of the portfolio.

D. The issuer of these securities must have an underlying rating of “A” or better from two nationally recognized rating agencies and the purchased securities must be rated ‘AAA’ by at least one nationally recognized rating agency.

E. Purchases of asset-backed and mortgage-backed securities are limited to 20% of the portfolio, based on the original cost, at the time of purchase.

Shares in a California Common Law Trust

A. Established pursuant to Chapter 5 of Division 7, Title 1 of the Government Code of the State of California (such as the California Asset Management Program (CAMP)).

B. Must be rated in the highest rating category by a NRSRO.

C. Agency may invest up to 20 percent of its total portfolio in these securities.


A. Must be registered with the Securities and Exchange Commission, meeting the requirements of Rule 2a-7 promulgated under the Investment Company Act of 1940.

B. Must either (i) have the highest applicable rating issued by two NRSROs or (ii) be managed by an investment advisor registered with the Securities and Exchange Commission with not less than five years experience and with assets under management in excess of $500,000,000 and be rated in the highest ratings category by an NRSRO.

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Exhibit 2



April 9, 2015

C. Investments in this category may not exceed 20% of the portfolio in effect at the time the investment is made and the purchase price of shares may not include commission.

VII. Reporting

Staff shall render a quarterly report to the Board detailing the types of investments in the portfolio, thedollar amount invested in each category, the rate of interest in each category and the total portfolio rateof interest. On a monthly basis the Staff shall submit a report to the Board detailing transactions for themonth.

VIII. Review

This investment policy shall be reviewed at least annually to ensure its consistency with the overallobjectives of preservation of principal, liquidity and return, and its relevance to current law and financialeconomic trends.

IX. Definition of Terms


Debt obligations that represent a claim on the cash flows from loans, leases, credit card debt, or acompany’s receivables through the process known as securitization. Cash flows from loans, leases,credit cards, or receivables provide collateral for the investor.

Bankers Acceptances (BAs)

Time drafts which a bank “accepts” as its financial responsibility as part of a trade finance process.These short-term notes are sold at a discount and are obligations of the drawer (the bank’s trade financeclient) as well as the bank. Once accepted, the bank is irrevocably obligated to pay the BA uponmaturity if the drawer does not.

Certificate of Deposit Account Registry Service (CDARS)

A program designed to assist public entities with the investment of large deposits into certificates of deposit (CDs) while staying below FDIC insurance limits at any given bank. CDARS is a program that eliminates the need to go from bank to bank in order to purchase a number of CDs by using a private sector placement service. After a bid process with at least three broker/dealers or banks has been completed, a deposit is made to the winning bidder. The funds are ultimately transferred to an FDIC insured bank that spreads the money across several banks, ensuring that the amount of money in each bank is never above the FDIC insurance limit. As part of the CDARCDARS program, the agency conducts business with a single bank which helps eliminates additional paperwork associated with purchasing and accounting for multiple CDs from multiple banks.

Commercial Paper (CP)

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Exhibit 2



April 9, 2015

Unsecured promissory notes issued by companies and government entities at a discount. Commercial paper is negotiable, although it is typically held to maturity. The maximum maturity is 270 days, with most CP issued for terms of less than 30 days..


Investment pool which holdspools hold and investsinvest the funds of multiple local investors and issue shares to those investors. Permitted investment sectors are predetermined by the local agencies who participate within the fund. The underlying assets within the pool provide credit support.

Duration

The change in the value of a fixed income security that will result from a 1% change in interest rates. Duration is stated in years.

The weighted average time to maturity of a bond where the weights are the present values of the future cash flows. Duration measures the price sensitivity of a bond to changes in interest rates. Federal Agencies and U.S. Government Sponsored Enterprises

U.S. Government related organizations, the largest of which are government financial intermediaries assisting specific credit markets (housing, agriculture). Often simply referred to as “Agencies,” they include:

• Federal Home Loan Banks (FHLB)• Government National Mortgage Association (GNMA)• Federal Agricultural Mortgage Corporation (Farmer Mac)• Federal National Mortgage Association (FNMA)• Federal Home Loan Mortgage Corporation (FHLMC)• Federal Housing Administration (FHA)• Federal Farm Credit Banks (FFCB)• Student Loan Mortgage Association (SLMA)• Tennessee Valley Authority (TVA)• International Bank for Reconstruction and Development (World Bank)• Inter-American Development Bank• Export Import Bank• United States Postal Service• United States Railway Association• Farm Credit Financial Assistance Corporation• Financing Corporation• Federal Land Bank

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Exhibit 2



April 9, 2015

Federal Agency Mortgage Backed Securities

A type ofAn asset-backed security that is secured by a mortgage or a pool of mortgages. Mortgages must originate from a regulated and authorized financial institution. These securities usually pay periodic payments that are similar to coupon payments.


Notes with a final maturity of 5 years or less issued by corporations organized and operating within the United States or by depository institutions licensed by the United States or any state and operating within the United States.


InvestmentMoney market mutual funds are investment pools that invest exclusively in short-term investments. Money market funds seek the preservation of capital as a primary goal while maintaining a high degree of liquidity and providing income representative of the market for short-term investments. Money Market Funds are secured by the underlying securities within the pool.

Mortgage- or Asset-Backed or Pass-Through Securities

Pass-through securities are instruments by which the cash flow from the mortgages, receivables or other assets underlying the security are passed through as principal and interest payments to the investor. Though these securities may contain a guarantee from the issuer, they are usually a package of mortgage assets being sold, not a debt obligation of the issuer. Other types of “backed” debt instruments have assets (such as leases or consumer receivables) pledged to support the debt service.


Securities issued by state and local governments.

Nationally Recognized Statistical Rating Organization (NRSRO)

A credit rating agency thatused by the Securities and Exchange Commission in the United States uses for regulatory purposes. Credit rating agencies provide assessments of an investment's risk.

The issuers of investments, especially debt securities, pay credit rating agencies to provide them with ratings.

Negotiable Certificates of Deposit (Negotiable CD)

A negotiable (marketable or transferable) receipt for a time deposit at a bank or other financial institution for a fixed time and interest rate.

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Exhibit 2

http://financial-dictionary.thefreedictionary.com/Credit+Rating+Agency

http://financial-dictionary.thefreedictionary.com/Securities+and+Exchange+Commission

http://financial-dictionary.thefreedictionary.com/Regulatory

http://financial-dictionary.thefreedictionary.com/Investment

http://financial-dictionary.thefreedictionary.com/Risk

http://financial-dictionary.thefreedictionary.com/Debt+Securities



April 9, 2015

Repurchase Agreements (Repos)

A A repurchase agreement is a purchase of securities under a simultaneous agreement to sell these securities back at a fixed price on some future date. This is in essence a collateralized investment with the difference between the purchase price and sales price determining the earnings. Overnight terms are the most common.

State of California Local Agency Investment Fund

Investment pool which holds and invests the funds of local agency investors in the State of California and issues shares to investors.

U.S. Treasuries

Obligations of the U.S. Government including:

* T-Bills: 3-month, 6-month and one-year securities issued and traded at a discount.* Treasury Notes and Bonds: interest-bearing instruments issued with maturities of two to thirty

years.* STRIPS: Zero-coupon securities. Each STRIP was originally an interest payment or principal

payment on a T-bond.

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Exhibit 2

RESOLUTION F2015-002

A RESOLUTION OF THE FOOTHILL/EASTERN TRANSPORTATION CORRIDOR AGENCY

REGARDING THE INVESTMENT OF SURPLUS MONEYS AND BOND PROCEEDS

WHEREAS the Foothill/Eastern Transportation Corridor Agency has received bond proceeds, State and Federal grant funds and Development Impact Fees to build the project; and

WHEREAS the Agency has and will continue to receive toll revenues; and,

WHEREAS the Agency has approved an Investment Policy dated December 12, 2013

NOW, THEREFORE BE IT RESOLVED that

The Board of Directors adopts the Investment Policy dated April 9, 2015 which contains guidelines within which the Agency will manage its cash and investments.

ADOPTED BY THE FOOTHILL/EASTERN TRANSPORTATION CORRIDOR AGENCY ON APRIL 9, 2015

SIGNED AND APPROVED ON APRIL 9, 2015

CRAIG YOUNG, ACTING CHAIRMAN FOOTHILL/EASTERN TRANSPORTATION CORRIDOR AGENCY

RESOLUTION F2015-002

A RESOLUTION OF THE FOOTHILL/EASTERN TRANSPORTATION CORRIDOR AGENCY

REGARDING THE INVESTMENT OF SURPLUS MONEYS AND BOND PROCEEDS ATTEST: I, Kathleen Loch, Clerk of the Board of the Foothill/Eastern Transportation Corridor Agency hereby certify that the foregoing Resolution No. F2015-002 was duly adopted on April 9, 2015 by the Board of Directors of the Foothill/Eastern Transportation Corridor Agency by the following vote: Motion: Yes: No: Absent: Abstain:

Kathleen Loch, Clerk of the Board San Joaquin Hills Transportation Corridor Agency

Sherri McKaig Assistant Secretary to the Board Foothill/Eastern Transportation Corridor Agency


DATE: April 9, 2015 TO: Foothill/Eastern Transportation Corridor Agency Board of Directors FROM: Michael A. Kraman, Chief Executive Officer SUBJECT: Community Ascertainment Study STAFF RECOMMENDATION:

1. Authorize the chief executive officer (CEO) to execute a three-year contract with Sharon Browning & Associates (Contract K001009) in the amount of $61,705 to conduct a community ascertainment study related to the Interstate 5 congestion issues in South Orange County. 2. Authorize the CEO to make additional changes deemed necessary and execute contract amendments within ten percent ($6,170) of the above contract approved by the Board through this action. BACKGROUND: In an ongoing effort to address solutions to the growing traffic congestion on Interstate 5 in South Orange County, staff is recommending the engagement of an experienced issues management and consensus building firm with knowledge of the region to conduct a community ascertainment study. This type of study is used to gather community input to gain insight into how best to work collaboratively in address issues for improving mobility in the region. The purpose of the study is to:

• Determine how the community defines the mobility issues related to traffic congestion on I-5 in South Orange County.

• Determine what priorities are important to address in order to achieve consensus about ways to solve these mobility issues.

Community Ascertainment Study File No. 2015F-007 Page 2 of 3 April 9, 2015

DISCUSSION: The scope of the study will include identifying key community stakeholders and opinion leaders that influence specific issues they believe impact their quality of life; facilitating in-depth one-on-one interviews to develop an understanding of the community’s issues regarding mobility; providing an analysis of the findings and developing a plan for achieving consensus. TCA issued a request for proposals on February 26, 2015. Proposers were asked to submit their qualifications to design and implement a community ascertainment study consisting of a total of 50 interviews with the local and regional community in and around South Orange County. Seven firms submitted proposals. The proposals were evaluated by Michael Kraman, chief executive officer, Valarie McFall, director of environmental services and Barbie Daly, manager of government & legislative affairs, based on the following criteria:

• Professional capability, demonstrated competence and specialized experience of the proposer.

• Understanding of the agency and project needs and ability to provide services required. • Compensation.

Proposal Evaluation Results:

CONSULTANT NAME RANK SCORE (max = 300)

Sharon Browning & Associates 1 265 Q & A Research, Inc. 2 218.5 Wilson, Sparling & Associates, Inc. 3 206.5 BBC Research & Consulting 4 199.5 Horizon Research Corporation 5 176.5 Beacon Management Group 6 175 Probolsky Research 7 161.5

Sharon Browning & Associates received the highest score and outlined a comprehensive plan to achieve the stated goals. The methodology the firm will employ includes:

• Research to understand the technical aspects of the I-5 traffic congestion problems. • Develop a community ascertainment work plan tailored specifically to achieve the goals

of the study including questions and interview process outline. • Identify local and regional thought leaders from within the community who have

indicated an interest in resolving the regional mobility issue. • Conduct 50 in-depth one-on-one interviews in the community to gain insight needed to

inform the study by refining the mobility problem statement, develop effective messaging and define next steps in working towards community consensus.

• Analyze the findings and make recommendations for moving forward to work inclusively and collaboratively within the community to develop solutions and build consensus.

Community Ascertainment Study File No. 2015F-007 Page 3 of 3 April 9, 2015

Sharon Browning & Associates has specialized in issues management and consensus planning for over twenty years. Ms. Browning has served a wide array of major firms, government agencies and organizations throughout Southern California. Notable clients have included The Irvine Company, University of California, Irvine, California Building Industry Association, Orange County Local Agency Formation Commission and the Orange County Environmental Management Agency. Specifically she worked on community ascertainment and consensus building for the Laguna Canyon Road project. FUNDING: Funding to cover the current fiscal year’s cost is included in the FY15 budget. Funding for the remainder of the project will be included in the FY16 budget. Approximately 30 percent of the budget will be spent in the current fiscal year with the remaining amount to be allocated in FY16. CONCLUSION: A community ascertainment study is recommended to determine if and how the community believes the Foothill/Eastern Transportation Corridor Agency should proceed in resolving the traffic congestion issues on I-5 in South Orange County. The study will also determine what priorities are important to address in order to achieve consensus about how to solve these mobility issues. Staff is recommending that Sharon Browning & Associates be awarded a contract to provide the community ascertainment study.

PROCUREMENT SUMMARY REPORT File No. 2015F-007 Contract #: K001009 Title: Community Ascertainment Study Recommend Award To: Sharon Browning & Associates Procurement Process

Type: Request for Proposal Award Criteria: Best Value Negotiated Price: $61,705 Vendor Sourcing: TCA’s Contracts Department posted RFP K001009 on TCA’s PlanetBids e-procurement system. Thirty-five firms that were already registered as TCA vendors were notified of RFP K001009. An additional 250 firms that were registered with other PlanetBids clients were also notified of RFP K001009. Thirty-six firms downloaded the RFP documents. The following seven firms submitted proposals. Proposal Results:

CONSULTANT NAME RANK SCORE (max = 300) PRICE:

Sharon Browning & Associates 1 265 $61,705 Q & A Research, Inc. 2 218.5 $55,325 Wilson, Sparling & Associates, Inc. 3 206.5 $27,600 BBC Research & Consulting 4 199.5 $48,245 Horizon Research Corporation 5 176.5 $118,480 Beacon Management Group 6 175 $18,963 Probolsky Research 7 161.5 $4,750

EVALUATION MAXIMUM Sharon Q & A Wilson, BBC Horizon Beacon Probolsky

CRITERIA POINTS Browning &

Associates

Research, Inc.

Sparling &

Associates, Inc.

Research &

Consulting

Research Corporation

Management Group

Research

Professional capability, demonstrated competence, and specialized experience of the proposer

90 81 58.5 73.5 66 60 60 60

Understanding of the Agency and Project needs and ability to provide services required

150 135 115 90 92.5 87.5 75 67.5

Compensation 60 49 45 43 41 29 40 34

TOTAL 300 265 218.5 206.5 199.5 176.5 175 161.5 Contract Notes:

• Sharon Browning & Associates proposed a professional fee of $61,705. This fee includes: a review of documents and data to understand the technical aspects of the 1-5 problem; preparation of interview schedule (i.e. questions and interview process outline); scheduling of interviews; refining interview records for analysis; conducting 50 off-site interviews including travel; content analysis of interviews; preparation of findings and recommendations; preparation of findings and recommendations report; project management meetings and communications with staff; Miscellaneous tasks including interviewee follow-up requests and communications, client requests, rescheduling of interviews, and project administration; all expenses associated with the project (e.g. office administration, mileage, parking, meeting supplies, out-of-pocket expenses). This fee is acceptable to TCA.

• The contract contains standard indemnification language previously approved by legal counsel.


DATE: April 9, 2015 TO: Foothill/Eastern Transportation Corridor Agency Board of Directors San Joaquin Hills Transportation Corridor Agency Board of Directors FROM: Barbie Daly, Manager of Government Affairs SUBJECT: 2015 Legislative Tracking List & Platforms STAFF RECOMMENDATION: Foothill/Eastern Transportation Corridor Agency Recommendations 1) Approve Federal Legislative Platform 2) Approve State Legislative Platform 3) Receive and File State Legislative Watch List San Joaquin Hills Transportation Corridor Agency Recommendations 1) Approve Federal Legislative Platform 2) Approve State Legislative Platform 3) Receive and File State Legislative Watch List BACKGROUND: The Foothill/Eastern and San Joaquin Hills Transportation Corridor Agencies (TCA) were formed through state legislation in 1986. Since that time, the agencies have maintained a strong federal and state government relations program to monitor potential impacts from legislation and advocate for positive legislation to support the toll road network. The State Legislature introduces new legislation each year. TCA staff, in conjunction with state legislative advocates, Nossaman LLP and Bob Naylor Associates, reviews hundreds of bills with the Joint Legislative Ad Hoc Committee to determine if the agencies should take a formal oppose or support position and then brings recommendations through the Joint Legislative Ad Hoc Committee and then to the Boards for approval.

2015 Legislative Tracking List & Platforms File No. 2015J-016 Page 2 of 3 April 9, 2015

DISCUSSION: On March 4, 2015, the Joint Legislative Ad Hoc Committee reviewed the state and legislative platforms for 2015 - 2016. The platforms outline the areas that the federal and state advocates will concentrate on throughout the year and are included as Exhibits 1 and 2. The following are highlights: Federal Platform Highlights

- Support transportation authorization legislation including efforts to streamline the TIFIA loan approval process.

- Support maximum funding for federal highway and transit programs. - Support legislation and regulations that provide opportunities to expedite and improve the

efficiency of the environmental review process for transportation projects. - Oppose federal legislation and regulations that impose unfunded mandates or other

burdens on transportation agencies and projects. - Brief members of Congress and federal department and agency officials on TCA projects

and seek their input and consensus where appropriate. - Work with federal agencies to obtain the approvals necessary to advance TCA’s capital

projects and programs

State Platform Highlights - Pursue statutory or regulatory changes to benefit TCA. - Monitor statutory or regulatory and administrative processes that could negatively affect

the agencies’ mission. - Monitor legislation aimed at stopping or hindering the SR-241 Tesoro Extension or the

241 Completion project. - Identify and educate legislators and staff about TCA and its projects.

A number of new state bills have been identified to watch in 2015. The list was reviewed by the Joint Legislative Ad Hoc Committee on March 4 (Exhibit 3). The agencies track a number of bills many of which fall into the following categories:

- License plate requirements - Security in electronic file transfers - California Environmental Quality Act revisions - Native American land issues - State parks - Toll road or managed lane operations - Public/Private Partnerships - Design/Build - Water runoff issues - Land mitigation requirements

2015 Legislative Tracking List & Platforms File No. 2015J-016 Page 3 of 3 April 9, 2015

At this time staff does not have any formal position recommendations on the attached list of bills. Staff will continue to monitor the bills on the watch list as they evolve. If a support or oppose position is necessary on a particular bill to protect the interests and mission of the agencies that recommendation will be brought back through the Joint Legislative Ad Hoc Committee and then to the full Boards for approval. FUNDING: N/A CONCLUSION: Staff is recommending approval of the 2015 State and Federal Legislative Platforms for the Foothill/Eastern and San Joaquin Hills Transportation Corridor Agencies attached to this staff report. Each year the state legislature introduces new bills and a watch list is developed for monitoring bills that could have an impact on toll road operations or the agencies’ mission. A list of the bills currently being evaluated is attached to this report. As the specific legislation is developed and a formal support or oppose position is in the best interest of the agencies, staff and the agencies’ legislative advocates will develop and review recommendations with the Joint Legislative Ad Hoc Committee and bring the request to the Boards of Directors for review and approval. EXHIBITS: 1 – Federal Legislative Platform 2 – State Legislative Platform 3 – 2015 State Legislative Watch List

2015-2016 Federal Legislative

Platform

Exhibit 1

INTRODUCTIONTCA’s federal legislative platform outlines the agencies’ statutory, regulatory and administrative goals and objectives. This platform was adopted by the TCA Board of Directors (Board) to provide direction to staff and federal legislative advocates for the 114th Congress.

The Transportation Corridor Agencies (TCA or the “Agencies”) are two joint powers authorities formed by the California legislature in 1986 to plan, finance, construct, and operate toll roads in Orange County. The TCA consists of two local government agencies: The San Joaquin Hills Transportation Corridor Agency and the Foothill/Eastern Transportation Corridor Agency. TCA was authorized to plan and construct 67 miles of toll roads. It has built a 51 mile toll road network comprised of the San Joaquin Hills (73), Foothill (241), and Eastern (241/261/133) toll roads. The agencies financed the construction of the toll roads with non-recourse bonds, which are backed solely by toll revenues and development impact fees collected from developers in the area of the roads. TCA collects tolls on the roads and uses the revenues to repay the bonds. The California Department of Transportation (Caltrans) owns and maintains the toll roads.

In addition to its ongoing toll collection and operational responsibilities, TCA is currently planning to build a 5.5 mile extension of the 241 Toll Road, which it refers to as the “Tesoro Extension”. TCA is open to alternatives on how to proceed beyond the Tesoro Extension, but is committed to a solution that addresses the regional mobility problems including congestion on Interstate 5. In addition, TCA is discussing the possibility of building a direct connector between the SR 241 Toll Road and 91 Express Lanes with the Orange County Transportation Authority (OCTA).

TCA is mindful of the importance of environmental mitigation and habitat preservation. TCA has invested over $224 million in environmental programs which include over 2,000 acres of restored, revegetated and preserved habitat as well as wildlife safety and movement protection. TCA also recently implemented an All Electronic Toll (AET) system to ensure the free flow of traffic and reduce operating costs.

1

F/ETCA BOARD OF DIRECTORS

Acting Chairman Craig Young, YORBA LINDA Lucille Kring, ANAHEIM

Scott Schoeffel, DANA POINT

Christina Shea, IRVINE

Scott Voigts, LAKE FOREST

Greg Raths, MISSION VIEJO

Mark Murphy, ORANGE

Anthony Beall, RANCHO SANTA MARGARITA

Kathy Ward, SAN CLEMENTE

Kerry Ferguson, SAN JUAN CAPISTRANO

David Benavides, SANTA ANA

Chuck Puckett, TUSTIN

Todd Spitzer, COUNTY OF ORANGE, 3RD DIST.

Shawn Nelson, COUNTY OF ORANGE, 4TH DIST.

Lisa Bartlett, COUNTY OF ORANGE, 5TH DIST.

SJHTCA BOARD OF DIRECTORS

Chairman, Scott Schoeffel, DANA POINT

Vice Chairman, Ross Chun, ALISO VIEJO

Gary Monahan, COSTA MESA


Melody Carruth, LAGUNA HILLS

Laurie Davies, LAGUNA NIGUEL

Bert Hack, LAGUNA WOODS

Ed Sachs, MISSION VIEJO

Scott Peotter, NEWPORT BEACH






73/133/241/261TOLL ROADS

PRINCIPLES AND OBJECTIVES

TCA will be guided by the following principles and objectives in implementing the recommendations in this platform:

1. TCA will support legislation, regulations and policies that eliminate unfunded mandates and allow the agencies to operate efficiently and build its roads as quickly and cost effectively as possible.

2. TCA will oppose federal laws, regulations and policies that impose added costs and burdens that unduly impact the agencies’ ability to build out its toll road network and operate the toll road system.

3. TCA will support stable and reliable federal funding for transportation programs and low cost financing for transportation projects.

4. TCA will support the legislative and regulatory efforts of other Orange County entities that are consistent with this platform.

5. TCA will to work with other stakeholders in the region, including the County of Orange, Orange County Transportation Authority (OCTA), Orange County Business Council, Riverside County Transportation Commission, regional transportation commissions, public transportation agencies, local cities, the Southern California Association of Governments and the San Diego Association of Governments in support of shared objectives.

6. TCA will make recommendations and draft legislation as needed that reflects its priorities for the surface transportation authorizing legislation and will reach out to regional, state, and congressional leaders in support of these priorities.

7. TCA will work with federal agencies to obtain the necessary approvals for its projects and programs.

Support for Transportation Authorization Legislation

Congress must authorize spending for highway and transit programs before it can make funds available for those programs. Congress has traditionally passed multiyear transportation authorization legislation, authorizing funds for the Department of Transportation (DOT) and its programs and establishing requirements associated with federal funding. The current surface transportation authorization law, titled Moving Ahead for Progress in the 21st Century (MAP-21), authorized

funding for Fiscal Years 2013 and 2014. MAP-21 was set to expire on September 30, 2014, but Congress extended it until May 31, 2015 because it could not pass new authorization legislation before the current law expired.

Congress is now charged with passing an authorization bill before MAP-21 expires on May 31. In the past, transportation funds largely came from revenues collected from the 18.4 cent per gallon federal tax on gasoline and the diesel tax deposited into the Highway Trust Fund. Because gas tax revenues are no longer sufficient to maintain level spending for transportation, Congress has been forced to supplement revenues from the Highway Trust Fund with general fund revenues.

With Congress focused on reducing the deficit, it has insisted on identifying offsets for general fund spending on transportation. While Republicans and Democrats in Congress and the current Administration have indicated a shared interest in passing transportation authorization legislation, their challenge will be to identify a funding stream to provide at least level funding over a multiyear period.

Because TCA operates roads on the highway system and is planning to construct roads in the future that may have a federal nexus, the agencies may want to take advantage of innovative financing programs. TCA benefits from investment of federal dollars by Caltrans and regional transportation agencies in road construction and maintenance. For these reasons, TCA is interested in the transportation authorization legislation.

In connection with the legislative process TCA will:

1. Make recommendations and support efforts to streamline and expedite the environmental review process for transportation projects.

2. Advocate for the continuation of subsidized loans and loan guarantees under TIFIA.

3. Support recommendations to streamline the TIFIA loan approval process.

4. Support the establishment of other forms of federally subsidized financing, including a federal infrastructure bank.

5. Support legislative provisions that encourage project sponsors to deliver projects more cost effectively, including through design-build contracts.

2

6. Oppose requirements for toll road interoperability that would impose additional financial and administrative burdens on toll road agencies.

7. Oppose new unfunded mandates on sponsors of transportation projects.

8. Analyze legislative proposals and bills to determine the impact on TCA and Orange County.

Annual Funding for Transportation

Congress must pass appropriations legislation annually to fund the federal government, including the Department of Transportation. The federal fiscal year runs from October 1 through September 30.

Congress begins the appropriations process early each calendar year. The President submits its proposed budget on the first Monday in February, the House and Senate Budget Committees put forth their budgets and Congress attempts to pass budget resolutions. The House and Senate Appropriations Committees then develop appropriations bills for the various federal departments and agencies with the goal being to pass all 12 appropriations bills before October 1. Where Congress is not able to pass appropriations bills before October 1, it routinely passes a continuing resolution extending funding until such time as Congress can pass the appropriations legislation.

With regard to federal appropriations, TCA will:

1. Support maximum funding for federal highway and transit programs.

Environmental Policy and Regulatory Requirements

Federal environmental laws and regulations that affect TCA include the National Environmental Protection Act (NEPA), the Clean Air Act, the Clean Water Act, the Coastal Zone Management Act, the Endangered Species Act, the National Historic Preservation Act and Section 4(f) of the Department of Transportation Act of 1966.

Projects that receive federal funding, connect with an interstate highway, or require a federal discretionary approval must be evaluated under NEPA. NEPA requires that a project sponsor and the lead and participating agencies consider project alternatives, evaluate environmental impacts and mitigate impacts to the extent practical.

The Clean Air Act requires that metropolitan planning organizations consider the impact of transportation projects on air quality. The Clean Water Act requires that a transportation project that would allow dredged or fill material to be discharged into Waters of the United States obtain a permit from the Army Corps of Engineers. The project sponsor must first demonstrate that, to the extent practicable, they (1) took steps to avoid wetland impacts; (2) minimized potential impacts on wetlands; and (3) provided compensation for any remaining unavoidable impacts.

Section 106 of the National Historic Preservation Act and Section 4(f) of the Department of Transportation Act prohibit a federally assisted transportation project from using land from a historic site or park, among other environmentally sensitive areas, unless (1) there is no feasible or prudent alternative; and (2) the project includes all possible planning to minimize harm to the site. The National Historic Preservation Act applies more broadly beyond transportation projects.

With regard to these laws and related regulations, TCA will:

1. Support legislation and regulations that provide opportunities to expedite and improve the efficiency of the environmental review process for transportation projects.

a. Allow projects in states with stringent environmental review laws to meet federal environmental review requirements through compliance with state laws.

b. Require that all federal agencies responsible for funding, permitting or approving a project collaborate on, use and adopt a single NEPA document for the project.

c. Require each federal agency to carry out obligations under applicable laws concurrently and in conjunction with the NEPA review unless doing so would impair the ability of the federal agency to carry out those obligations.

d. Deem participating agency concurrence in lead agency determinations where the participating agency fails to object in writing within 30 days following a lead agency’s determination or request for concurrence.

3

e. Prohibit an agency from changing its position where that agency concurred or made a finding as part of a coordinated review process absent new developments or the discovery of critical and relevant new information.

f. Direct the Council on Environmental Quality (CEQ) and the Federal Highway Administration (FHWA) to revise their NEPA regulations to provide that subsequent tiered NEPA documents shall not reconsider issues addressed in prior NEPA documents concerning the project or action.

g. Limit resource agency comments to issues within the jurisdiction and expertise of the resource agency and require resource agencies to accept the evaluation of the FHWA on traffic, engineering and cost issues.

2. Analyze legislative proposals, proposed regulations and policies that relate to or may impact the environmental review and project approval process for transportation projects and evaluate their impact on TCA.

3. Oppose legislation and regulations that would add additional requirements and make it more difficult and costly for TCA to advance its projects or operate its toll road system.

4. Monitor any new federal programs seeking to address the environmental impacts of greenhouse gases to ensure that any new environmental requirements are accompanied by additional funding necessary to implement those requirements.

Innovative Financing and Efficient Approaches to Project Delivery

While the TCA does not enter into traditional public private partnerships (P3) where the private sector finances, builds and operates the toll road, it does seek to lower project costs and expedite project delivery through the use of design-build contracts. TCA also may be interested in pursuing a TIFIA loan to reduce the cost of project financing1.

The House Committee on Transportation and Infrastructure convened a Special Panel on Public-Private Partnerships on January 16, 2014 to consider P3s across the committee’s jurisdiction. The Panel issued a report that included a number of recommendations many of which may be relevant to TCA:

(1) Direct DOT to establish a Transportation Procurement Office to work with modal agencies, states and other grant recipients on implementing design-bid-build, design-build and P3 procurement best practices;

(2) Direct the Transportation Procurement Office to develop and institute project delivery performance standards for design-bid-build, design-build and P3 procurements;

(3) Direct DOT to require state departments of transportation to compile and submit an annual report on project procurement performance (compared to project delivery performance standards developed by the Transportation Procurement Office) for projects receiving federal funds;

(4) Continue the TIFIA program to provide credit assistance to projects of national and regional significance; and

(5) Direct DOT to report to Congress on the approval process for innovative financing tools at DOT and recommend ways to achieve efficiencies in the process without diminishing federal oversight.

With regard to innovative financing and project development TCA will:

1. Support implementation of the recommendations of the Special Panel on Public-Private Partnerships.

2. Support federal legislation and regulations that incentivize and make it easier to undertake design-build procurements.

3. Support federal legislation that streamlines the TIFIA approval process.

1The TIFIA program provides loans, loan guarantees and lines of credit to transportation projects with a revenue stream, such as toll roads. The interest rate for a TIFIA loan is the equivalent of the Treasury rate. Repayments can start up to five years after substantial completion of the project and a project sponsor can take up to 35 years after substantial completion to repay the loan. TCA received a line of credit under a DOT program that was the precursor to TIFIA. While TCA never drew down the line of credit, it was able to reduce its borrowing costs because of the line of credit.

4

4. Support federal legislation that allows TIFIA loans to be used for the subsequent refinancing of project debt.

5. Oppose legislation and regulations that add additional requirement to the approval process for TIFIA loans.

6. Evaluate proposals and consider supporting other federal financing programs, including a national infrastructure bank.

Advancement of Current and Future Capital ProjectsTCA is working to secure the approvals needed to build the Tesoro Extension of the 241 Toll Road. TCA is also meeting with stakeholders to discuss potential alternatives to connect to Interstate 5.

Finally, TCA, in conjunction with OCTA, is evaluating options for building a direct connector between the 241 and 91 toll roads. TCA will evaluate legislation and regulations to determine the potential impact on these projects and advocate for legislation and regulations that facilitate project development. The Agency will also seek the support of Members of Congress and executive branch agencies as appropriate as part of the project development and approval process.

With regard to current and future capital projects TCA will:

1. Review bills, proposed regulations and policy changes to determine their relevance to TCA and take positions on those that will negatively impact TCA’s ability to advance its capital projects or operate efficiently.

2. Support federal legislation and regulations that accelerate project development.

3. Oppose federal legislation and regulations that impose unfunded mandates or other burdens on state and local entities seeking to plan and develop transportation projects.

4. Support federal legislation, regulations and policies that make available low cost federal loans and loan guarantees and expedite the process for securing loans and loan guarantees.

5. Brief members of Congress and federal department and agency officials on TCA projects as appropriate and seek their input and consensus where appropriate.

6. Work with federal agencies to obtain the approvals necessary to advance TCA’s capital projects and programs.

5

73

74

55

55

241

241

241

261

405

Windy RidgeMainline

Irvine RanchMainline

Tomato SpringsMainline

Catalina ViewMainline

LAGUNA BEACH

NEWPORTBEACH

CORONADEL MAR

IRVINE

COSTA MESA

SANTA ANA

ORANGE

ANAHEIM

ANAHEIM HILLS

Irvine Lake

LAKE FOREST

RANCHO SANTAMARGARITA

COTODE CAZA

FOOTHILL RANCH

MISSION VIEJO

LAGUNA HILLS

LAGUNAWOODS

ALISO VIEJO

LAGUNANIGUEL

DANA POINT

SAN JUANCAPISTRANO

To San Diego

To Los Angeles

ToLongBeach Irvine

Center Drive

Sand Canyon

SantiagoCanyon

Chapman

University

University/Jamboree

BonitaCanyon

MacArthur

MacArthurNewport

Coast

Aliso Creek

Laguna Canyon Road

GoldenLantern

CrownValley Pkwy Ortega Hwy

La Paz

Basilone Road

La Paz

Moulton

El Toro

Irvine Blvd

Los Alisos

Los Alisos

Santa Margarita Pkwy

Alton

LakeForestBison

Birch

Bear

BristolBear

AltonCulver

Jamboree

Barranca Pkwy

Muirlands

Jamboree

Jamboree

Red Hill

Edinger

90

5

CrownValley Pkwy

133

SAN CLEMENTE

22

Orange GroveMainline

Irvine West

Portola West

Chapman/Santiago Canyon

IrvineEast

PortolaNorth

PortolaSouth

LakeForest

Alton

VILLA PARK

El Toro -Laguna Canyon

Glenwood -La Paz -Moulton

Oso Pkwy

TUSTIN

Newport Ave

57

91

Cristianitos Road

Ave Pico

CowCampRd.

BakePkwy

To Riverside

5

5

91

YORBA LINDA

Avenida La Pata

241

AntonioPkwy

241

73 TOLL ROAD

133, 241, 261 TOLL ROADS

241 TESORO EXTENSION

TOLL ROAD ENTRANCE/EXIT (NO TOLL)

TOLL ROAD ENTRANCE/EXIT (TOLL)

MAINLINE (TOLL POINT)

6

2015-2016 State Legislative

Platform

Exhibit 2

INTRODUCTIONPublic Infrastructure, Private InvestmentThe 2015/16 State Legislative Platform (Platform) outlines the Transportation Corridor Agencies’ (TCA) legislative and regulatory goals for the upcoming legislative session. The document will serve as a guide for the TCA Board of Directors and staff’s endeavors to execute the right approach to advancing complex transportation projects.

1

F/ETCA BOARD OF DIRECTORS

Acting Chairman Craig Young, YORBA LINDA Lucille Kring, ANAHEIM

Scott Schoeffel, DANA POINT


Scott Voigts, LAKE FOREST

Greg Raths, MISSION VIEJO

Mark Murphy, ORANGE

Anthony Beall, RANCHO SANTA MARGARITA




Chuck Puckett, TUSTIN


Shawn Nelson, COUNTY OF ORANGE, 4TH DIST.


SJHTCA BOARD OF DIRECTORS

Chairman, Scott Schoeffel, DANA POINT

Vice Chairman, Ross Chun, ALISO VIEJO

Gary Monahan, COSTA MESA


Melody Carruth, LAGUNA HILLS

Laurie Davies, LAGUNA NIGUEL

Bert Hack, LAGUNA WOODS

Ed Sachs, MISSION VIEJO

Scott Peotter, NEWPORT BEACH






73/133/241/261TOLL ROADS

BACKGROUNDThe Transportation Corridor Agencies (TCA) are the two joint-powers agencies -- the Foothill/Eastern Transportation Corridor Agency and the San Joaquin Hills Transportation Corridor Agency -- formed in 1986 to manage the planning, financing, construction and operation of State Routes 73, 133, 241 and 261 (The Toll Roads). Elected officials from 18 cities and three members of the Orange County Board of Supervisors govern the agencies and one staff works under the direction of both boards.

The Toll Roads were the first public highways to be constructed in Orange County since 1987 and while they are owned and maintained by the state of California, they were built with virtually no taxpayer dollars.

The TCA is funded by the sale of bonds to both private individuals and institutional investors. The bonds can only be repaid by future tolls and development fees. Since the bonds are not backed by the government, taxpayers are not responsible for repaying the debt if future toll revenues fall short. Today, toll and development impact fee revenue go toward retiring the construction debt, funding additional improvements and covering costs of operating the Toll Roads.

As the region’s population increases and the economy grows, TCA works toward ensuring that the Toll Roads remain valuable, congestion-free alternatives to local freeways. Every day more than 250,000 motorists choose to drive the Toll Roads, and at 51 miles, the system is the largest network of toll roads in California and makes up 20 percent of Orange County’s highway system.

Benefits of the Toll Roads

The Toll Roads provide Reliable Travel throughout Orange County, improve quality of life and shorten commute times.

The Toll Roads Save Time, with drivers reporting they save up to 17 minutes per trip by using The Toll Roads compared to other driving alternatives. The Toll Roads Save Money, because traffic delays in Orange County equate to wage and salary losses of $154.8 million and result in 16.7 million gallons of extra fuel. Less traffic means no lost wages or fuel costs.

Driving The Toll Roads Reduces Stress from sitting in traffic, wasting gas and running late. Not only do The

Toll Roads offer an easy escape from traffic, they provide commanding views of Orange County’s spectacular canyons and ocean vistas. Driving The Toll Roads can help maintain Cleaner Air because they were designed to utilize “free flow” conditions to reduce congestion and cut down excess greenhouse gas emissions caused by congestion and idling.

Now with automated toll collection and No Stopping, every vehicle -- not just vehicles with a FasTrak®

transponder -- travels nonstop on The Toll Roads.

The Platform

The State Platform serves as a framework document to guide statutory, regulatory and administrative activities in the 2015-16 state legislative session.

The focus of the TCA within these three State level arenas has traditionally been on issues or actions specifically related to the Agencies’ governance, operations or future completion of the toll road network. At times the TCA has also engaged, but less often, in broader policy initiatives related to (or embedded in) the state budget or broader transportation and environmental policies.

The Platform seeks to identify the likely specific issues or actions that may surface in 2015-16 and require the attention and engagement of the TCA Board Members, Staff and team of policy advocates.

Potential Supportive Statutory, Regulatory or Administrative Changes

Statutory or regulatory changes beneficial to the TCA may be pursued in the Legislature in 2015-16. On a Bill by Bill basis the TCA will monitor the process, identify legislation, analyze the impacts and consider joining coalitions and supporting legislation on issues including:

• Toll evasion remedies including temporary license plates

– TCA previously worked with coalition partners on legislation to develop a system of temporary license plates to help stop costly toll evasion. Any such system needs car dealer, DMV and toll agency agreement to be successful.

• Increased highway signage

– The conversion in toll collection to All Electronic Tolling has shown the need to educate the traveling public on payment options. Legislation or regulatory changes may be needed to allow additional signage focused on specific messaging.

2

• California Environmental Quality Act (CEQA) reform

– Support and/or propose if applicable changes to CEQA or other similar laws to streamline environmental review and support collaborative decision making.

• Mitigation banks

– Consider support of changes that would insure long term financial support for habitat protection only if legislation recognizes the value of existing TCA programs.

• OCTA and RCTC efforts to increase mobility in the region

– Support the OCTA/RCTC in their work to increase mobility in the region, including efforts to implement and complete an SR 91/SR 241 Direct Connector.

• AB 32 Implementation

– Monitor regulatory process and benefits of the TCM designation for the SR 241.

• Protection of Consumer Data and Interoperability

– Insure legislative initiatives of protection are flexible enough to allow national and state interoperability of toll collection systems data while protecting consumers data. Build off past TCA supported legislative efforts.

• Bike/Pedestrian Trails within the State’s Active Transportation Program:

– Support efforts for funding or new capacity for trails and pathways in corridors.

Issues to Monitor for Statutory, Regulatory or Administrative Changes

TCA will monitor the statutory, regulatory and administrative processes and engage using all resources necessary to oppose changes that negatively affect the agencies’ missions, specifically in issue areas such as:

• Joint Powers Authorities

• HOV/HOT lanes/toll roads

• Customer data management and privacy issues

• Financing, including development impact fees

• CEQA enhancements

• Caltrans maintenance responsibilities

• State Park operations

• Conservation easements

Tesoro Extension

Currently, F/ETCA is focusing on the Tesoro Extension project – a 5-mile extension of the 241 Toll Road from Oso Parkway to Cow Camp Road. The Tesoro Extension will provide important traffic relief independent of any future extension of the 241 Toll Road. The alignment of the Tesoro Extension is within the Rancho Mission Viejo Ranch Plan development that will include 14,000 new homes and 5 million square feet of commercial development.

TCA will:

• Monitor legislation and the budget process to identify legislative actions aimed at stopping or hindering Tesoro’s completion.

• Identify and educate legislators and staff about the Tesoro Extension, encouraging legislators to assist TCA’s efforts to engage with project opponents and develop a working relationship that addresses regional mobility needs.

• Work with regional business and community leaders to promote the Tesoro Extension with legislators.

• Continue actions to secure a waste discharge permit from the San Diego Regional Water Quality Control Board and all other state and federal permits.

Completion of the SR 241

The 241 Toll Road project alignment south of Cow Camp Road is undetermined at this time. TCA is open to alternatives on how to proceed beyond the Tesoro Extension, but is committed to a solution that addresses the regional mobility problems including congestion on Interstate 5.

The 241 Toll Road project is an element of Orange County’s Long Range Transportation Plan (LRTP), and is included in the San Diego Association of Governments and Southern California Association of Governments Regional Transportation Plans (RTP), Regional Transportation Improvement Programs (RTIP) and the Orange County master plan of arterial highways (MPAH). These are programmatic, long-term planning documents and as such, are not alignment specific. The 241 Toll

3

Road project is an important element of the Southern California regional mobility and air quality compliance strategy.

TCA will oppose legislative efforts to stop or hinder the 241 completion project including any “budget play” involving the budget committees and/or the regular policy committee process.

TCA will monitor and engage on any statutory actions that include:

1. Direct attacks on the agency (TCA authorizing statutes);

2. Direct attacks on the project(s); and

3. Anti-project policy legislation

4

73

74

55

55

241

241

241

261

405

Windy RidgeMainline

Irvine RanchMainline

Tomato SpringsMainline

Catalina ViewMainline

LAGUNA BEACH

NEWPORTBEACH

CORONADEL MAR

IRVINE

COSTA MESA

SANTA ANA

ORANGE

ANAHEIM

ANAHEIM HILLS

Irvine Lake

LAKE FOREST

RANCHO SANTAMARGARITA

COTODE CAZA

FOOTHILL RANCH

MISSION VIEJO

LAGUNA HILLS

LAGUNAWOODS

ALISO VIEJO

LAGUNANIGUEL

DANA POINT

SAN JUANCAPISTRANO

To San Diego

To Los Angeles

ToLongBeach Irvine

Center Drive

Sand Canyon

SantiagoCanyon

Chapman

University

University/Jamboree

BonitaCanyon

MacArthur

MacArthurNewport

Coast

Aliso Creek

Laguna Canyon Road

GoldenLantern

CrownValley Pkwy Ortega Hwy

La Paz

Basilone Road

La Paz

Moulton

El Toro

Irvine Blvd

Los Alisos

Los Alisos

Santa Margarita Pkwy

Alton

LakeForestBison

Birch

Bear

BristolBear

AltonCulver

Jamboree

Barranca Pkwy

Muirlands

Jamboree

Jamboree

Red Hill

Edinger

90

5

CrownValley Pkwy

133

SAN CLEMENTE

22

Orange GroveMainline

Irvine West

Portola West

Chapman/Santiago Canyon

IrvineEast

PortolaNorth

PortolaSouth

LakeForest

Alton

VILLA PARK

El Toro -Laguna Canyon

Glenwood -La Paz -Moulton

Oso Pkwy

TUSTIN

Newport Ave

57

91

Cristianitos Road

Ave Pico

CowCampRd.

BakePkwy

To Riverside

5

5

91

YORBA LINDA

Avenida La Pata

241

AntonioPkwy

241

73 TOLL ROAD

133, 241, 261 TOLL ROADS

241 TESORO EXTENSION

TOLL ROAD ENTRANCE/EXIT (NO TOLL)

TOLL ROAD ENTRANCE/EXIT (TOLL)

MAINLINE (TOLL POINT)

5

of 18

2015 State Legislative Watch List

as of 4/2/2015

TCA Legislative Bills of Most Importance (High Priority)

1. SB 34 (Hill D) Automated license plate recognition systems: use of data. Current Text: Introduced: 12/1/2014 pdf html Status: 3/10/2015-Set for hearing April 7. Location: 1/15/2015-S. T. & H. Calendar: 4/7/2015 1:30 p.m. - John L. Burton Hearing Room

(4203) SENATE TRANSPORTATION AND HOUSING, BEALL, Chair Summary: Would impose specified requirements on an “ALPR operator” as defined,

including, among others, ensuring that the information the ALPR operator collects is protected with certain safeguards, and implementing and maintaining specified security procedures and a usage and privacy policy with respect to that information.

Organization Position Priority Assigned Subject Group Transportation

Corridor Agency (TCA)

Watch 1 - High Priority

CWalker, RHarris

Notes 1:

2. AB 516 (Mullin D) Vehicles: temporary license plates. Current Text: Introduced: 2/23/2015 pdf html Status: 3/5/2015-Referred to Com. on TRANS. Location: 3/5/2015-A. TRANS. Summary: Would require the DMV to develop a temporary license plate system to

enable vehicle dealers and lessor-retailers to provide temporary license plates, and would require the system to begin operation on or before January 1, 2017. The bill would also require, commencing January 1, 2017, a motor vehicle dealer or lessorretailer to affix a temporary license plate, at the time of sale, to a vehicle sold without a permanent license plate. Because a violation of this provision would be a crime, this bill would impose a state-mandated local program.




CWalker, RHarris

Notes 1:

Exhibit 3

http://www.leginfo.ca.gov/cgi-bin/postquery?bill_number=sb_34&sess=1516&house=B

http://sd13.senate.ca.gov/

http://www.leginfo.ca.gov/pub/15-16/bill/sen/sb_0001-0050/sb_34_bill_20141201_introduced.pdf

http://www.leginfo.ca.gov/pub/15-16/bill/sen/sb_0001-0050/sb_34_bill_20141201_introduced.html

http://www.leginfo.ca.gov/cgi-bin/postquery?bill_number=ab_516&sess=1516&house=B

http://asmdc.org/members/a22/

http://www.leginfo.ca.gov/pub/15-16/bill/asm/ab_0501-0550/ab_516_bill_20150223_introduced.pdf

http://www.leginfo.ca.gov/pub/15-16/bill/asm/ab_0501-0550/ab_516_bill_20150223_introduced.html

of 18

3. AB 457 (Melendez R) High-occupancy toll lanes. Current Text: Amended: 3/26/2015 pdf html Status: 3/26/2015-Referred to Com. on TRANS. From committee chair, with author's

amendments: Amend, and re-refer to Com. on TRANS. Read second time and amended. Location: 3/26/2015-A. TRANS. Summary: Current law authorizes a regional transportation agency, as defined, in

cooperation with the Department of Transportation, to apply to the California Transportation Commission to develop and operate high-occupancy toll lanes. Current law requires the commission, in cooperation with the Legislative Analyst, to annually prepare a report on the progress of the development and operation of these facilities. This bill would instead require the commission, in cooperation with the Legislative Analyst, to prepare this report every two years.




CWalker, RHarris

Notes 1:

4. AB 1459 (Kim R) Toll facilities: County of Orange. Current Text: Introduced: 2/27/2015 pdf html Status: 3/2/2015-Read first time. Location: 2/27/2015-A. PRINT Summary: Current law authorizes certain toll facilities on public highways. This bill would

prohibit a toll facility, as defined, to be implemented and constructed on a public highway within the boundaries of the County of Orange unless approved by a 2/3 vote of the electorate in the county. This bill contains other related provisions.




CWalker, RHarris

Notes 1:

5. AB 194 (Frazier D) High-occupancy toll lanes. Current Text: Introduced: 1/28/2015 pdf html Status: 2/9/2015-Referred to Com. on TRANS. Location: 2/9/2015-A. TRANS. Summary: Would delete the requirement that high-occupancy toll (HOT) lanes facilities

be consistent with the established standards, requirements, and limitations that apply to specified facilities and would instead require the California Transportation Commission to establish guidelines for the development and operation of the facilities approved by the commission on or after January 1, 2016, subject to specified minimum requirements. The bill would provide that these provisions do not authorize the conversion of any existing nontoll or nonuser-fee lanes into tolled or user-fee lanes, except that a high-occupancy vehicle lane may be converted into a high-occupancy toll lane pursuant to its provisions.




CWalker, RHarris

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6. AB 1486 (Obernolte R) Vehicles: toll highways. Current Text: Introduced: 2/27/2015 pdf html Status: 3/2/2015-Read first time. Location: 2/27/2015-A. PRINT Summary: Current law requires the Department of the California Highway Patrol to

provide for the proper and adequate policing of all toll highways and all vehicular crossings to ensure enforcement of the Vehicle Code and of any other law relating to the use and operation of vehicles upon toll highways, highways or vehicular crossings, and of the rules and regulations of the Department of Transportation as they relate to those laws, and to cooperate with the Department of Transportation to the end that vehicular crossings are operated at all times in a manner as to carry traffic efficiently. This bill would make technical, nonsubstantive changes to these provisions.




CWalker, RHarris

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Additional Bills to Monitor

AB 4 (Linder R) Vehicle weight fees: transportation bond debt service. Current Text: Introduced: 12/1/2014 pdf html Status: 1/16/2015-Referred to Com. on TRANS. Location: 1/16/2015-A. TRANS. Summary: Would, notwithstanding specified provisions or any other law, until January 1,

2020, prohibit weight fee revenues from being transferred from the State Highway Account to the Transportation Debt Service Fund, the Transportation Bond Direct Payment Account, or any other fund or account for the purpose of payment of the debt service on transportation general obligation bonds, and would also prohibit loans of weight fee revenues to the General Fund.



Watch CWalker, RHarris

Notes 1:

AB 40 (Ting D) Golden Gate Bridge: sidewalk fees. Current Text: Introduced: 12/1/2014 pdf html Status: 1/22/2015-Referred to Com. on TRANS. Location: 1/22/2015-A. TRANS. Calendar: 4/6/2015 1:30 p.m. - State Capitol, Room

4202 ASSEMBLY TRANSPORTATION, FRAZIER, Chair Summary: Current law establishes bridge and highway districts and various regional

transportation authorities and transit districts, including the Golden Gate Bridge, Highway and Transportation District, and prescribes the powers and duties of the district, including the power to fix and collect all tolls for the use of the district's property. This bill would prohibit the district from fixing or collecting any tolls or access fees for pedestrian and













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bicyclist use of the Golden Gate Bridge sidewalks. Organization Position Priority Assigned Subject Group Transportation



Notes 1:

AB 51 (Quirk D) Vehicles: motorcycles: lane splitting. Current Text: Amended: 2/11/2015 pdf html Status: 2/12/2015-Re-referred to Com. on TRANS. Location: 2/12/2015-A. TRANS. Calendar: 4/6/2015 1:30 p.m. - State Capitol, Room

4202 ASSEMBLY TRANSPORTATION, FRAZIER, Chair Summary: Would authorize a motorcycle to be driven between rows of stopped or

moving vehicles in the same lane if the speed of traffic is 30 miles per hour or less and the motorcycle is driven no more than 10 miles per hour faster than the speed of traffic. The bill would provide that these provisions do not authorize a motorcycle to be driven in contravention of other laws relating to the safe operation of a vehicle. By creating a new crime, this bill would impose a state-mandated local program. This bill contains other related provisions and other existing laws.




Notes 1:

AB 79 (Mathis R) State highway routes: route numbers. Current Text: Introduced: 1/5/2015 pdf html Status: 1/6/2015-From printer. May be heard in committee February 5. Location: 1/5/2015-A. PRINT Summary: Current law gives the Department of Transportation full possession and

control of all state highways. Current law describes the authorized routes in the state highway system by route numbers and provides that the route numbers are those given to the routes by the California Transportation Commission. This bill would make technical, nonsubstantive changes to these provisions.




Notes 1:

AB 162 (Rodriguez D) State highways: wrong-way driving. Current Text: Amended: 3/24/2015 pdf html Status: 3/25/2015-Re-referred to Com. on TRANS. Location: 3/25/2015-A. TRANS. Calendar: 4/6/2015 1:30 p.m. - State Capitol, Room

4202 ASSEMBLY TRANSPORTATION, FRAZIER, Chair Summary: Would require the Department of Transportation, in consultation with the

Department of the California Highway Patrol , to update a 1989 report on wrong-way










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driving on state highways to account for technological advancements and innovation, to include a review of methods studied or implemented by other jurisdictions and entities to prevent wrong-way drivers from entering state highways, and to provide the report to specified legislative committees on or before January 1, 2017. This bill contains other related provisions.




Notes 1:

AB 192 (Allen, Travis R) License plates. Current Text: Introduced: 1/28/2015 pdf html Status: 3/19/2015-Referred to Com. on TRANS. Location: 3/19/2015-A. TRANS. Summary: Current law establishes a specialized license plate program and requires the

Department of Motor Vehicles to issue specialized license plates to a sponsoring state agency that meets certain requirements. Current law requires that the department charge specified additional fees for the issuance, renewal, or transfer of specialized license plates. This bill would make a technical, nonsubstantive change to this provision.




Notes 1:

AB 210 (Gatto D) High-occupancy vehicle lanes: County of Los Angeles. Current Text: Introduced: 2/2/2015 pdf html Status: 3/24/2015-From committee: Do pass and re-refer to Com. on APPR. (Ayes 15.

Noes 0.) (March 23). Re-referred to Com. on APPR. Location: 3/24/2015-A. APPR. Summary: Would prohibit, commencing July 1, 2016, any high-occupancy vehicle lane

from being established on specified portions of state highway routes in the County of Los Angeles, unless that lane is established as a high-occupancy vehicle lane only during the hours of heavy commuter traffic, as determined by the Department of Transportation. The bill would require any existing high-occupancy vehicle lane established on the specified portions of these routes to be modified to conform with those requirements.




Notes 1:

AB 212 (Achadjian R) State highways. Current Text: Introduced: 2/2/2015 pdf html Status: 2/3/2015-From printer. May be heard in committee March 5. Location: 2/2/2015-A. PRINT Summary: Current law establishes the Department of Transportation and the California

Transportation Commission and provides that the department has full possession and













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control of all state highways and all property and rights in property acquired for state highway purposes and authorizes and directs the department to lay out and construct all state highways between the termini designated by law and on the locations as determined by the commission. This bill would make technical, nonsubstantive changes to these provisions.




Notes 1:

AB 218 (Melendez R) State Highway Route 74. Current Text: Introduced: 2/2/2015 pdf html Status: 3/24/2015-From committee: Do pass and re-refer to Com. on APPR. with

recommendation: To Consent Calendar. (Ayes 16. Noes 0.) (March 23). Re-referred to Com. on APPR.

Location: 3/24/2015-A. APPR. Summary: Current law authorizes the California Transportation Commission to relinquish

certain state highway segments to local agencies. This bill would authorize the commission to relinquish to the County of Riverside that portion of State Highway Route 74 located in the unincorporated area east of the City of Lake Elsinore and west of the City of Perris under specified conditions.




Notes 1:

AB 219 (Daly D) Public works: concrete delivery. Current Text: Introduced: 2/2/2015 pdf html Status: 3/26/2015-In committee: Set, first hearing. Hearing canceled at the request of

author. Location: 2/9/2015-A. L. & E. Calendar: 4/8/2015 Anticipated Hearing ASSEMBLY L. & E., Not in daily file. Summary: Current law defines "public works," for purposes of requirements regarding

the payment of prevailing wages for public works projects, to include, among other things, the hauling of refuse from a public works site to an outside disposal location with respect to contracts involving any state agency, including the California State University and the University of California, or any political subdivision of the state. This bill would expand the definition of "public works," for these purposes to include the delivery of ready-mixed concrete with respect to contracts involving any state agency or any political subdivision of the state.




Notes 1:

AB 222 (Achadjian R) Vehicle records: confidential home address. Current Text: Amended: 3/23/2015 pdf html Status: 3/24/2015-Re-referred to Com. on TRANS.













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Location: 3/24/2015-A. TRANS. Calendar: 4/6/2015 1:30 p.m. - State Capitol, Room

4202 ASSEMBLY TRANSPORTATION, FRAZIER, Chair Summary: Current law prohibits the disclosure of the home addresses of certain public

employees and officials, including an employee of the Department of Corrections and Rehabilitation, Division of Juvenile Facilities or the Prison Industry Authority, that appear in records of the Department of Motor Vehicles, except to a court, a law enforcement agency, an attorney in a civil or criminal action under certain circumstances, and certain other official entities. This bill would extend that prohibition, subject to those same exceptions, to the disclosure of the home addresses of an employee of the State Department of State Hospitals, as specified.




Notes 1:

AB 223 (Dahle R) Highways: exit information signs. Current Text: Introduced: 2/3/2015 pdf html Status: 3/19/2015-In committee: Hearing postponed by committee. Location: 2/17/2015-A. TRANS. Calendar: 4/6/2015 1:30 p.m. - State Capitol, Room

4202 ASSEMBLY TRANSPORTATION, FRAZIER, Chair Summary: Current law requires the Department of Transportation, until January 1, 2021,

to allow the placement of information signs along State Highway Route 65 within, or at exits leading to, the City of Lincoln, and requires the department to report, by January 1, 2020, to the transportation committees of the Senate and Assembly on the implementation of this provision and on its recommendations as to whether the period of this authorization should be extended, and whether the authorization should be expanded to other urban areas. This bill would additionally require the department, until January 1, 2021, to allow the placement of information signs along Interstate 80 within, or at exits leading to, the City of Truckee.




Notes 1:

AB 227 (Alejo D) Transportation funding. Current Text: Introduced: 2/3/2015 pdf html Status: 2/17/2015-Referred to Coms. on TRANS. and BUDGET. Location: 2/17/2015-A. TRANS. Summary: Current law provides for loans of revenues from various transportation funds

and accounts to the General Fund, with various repayment dates specified. This bill, with respect to any loans made to the General Fund from specified transportation funds and accounts with a repayment date of January 1, 2019, or later, would require the loans to be repaid by December 31, 2018. This bill contains other related provisions and other current laws.

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RHarris

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AB 232 (Allen, Travis R) Parks and monuments: operating leases or agreements. Current Text: Introduced: 2/4/2015 pdf html Status: 2/17/2015-Referred to Com. on W., P., & W. Location: 2/17/2015-A. W.,P. & W. Summary: Current law prohibits the Department of Parks and Recreation from entering

into an operating lease or agreement, or amendment, unless one of 2 conditions are met including if, following enactment of the annual Budget Act, the State Public Works Board determines, among other things, that the proposed lease or agreement, or amendment, could not have been presented to the Legislature for review during the annual budget process, as provided. This bill would authorize the board to review and approve a proposed lease or agreement, or amendment, no earlier than 30 days after it has provided written notification to the chairpersons of those legislative committees, as provided.




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AB 259 (Dababneh D) Personal information: privacy. Current Text: Introduced: 2/9/2015 pdf html Status: 3/25/2015-In committee: Set, first hearing. Referred to suspense file. Location: 3/25/2015-A. APPR. SUSPENSE FILE Summary: Current law requires an agency that owns or licenses computerized data that

includes personal information, as defined, to provide notification of any breach in the security of that data to any California resident whose personal information may have been compromised by the breach, as specified. This bill would additionally require an agency, if the agency was the source of the breach and the breach compromised a person's social security number, driver's license number, or California identification card number, to offer to provide the person with identity theft prevention and mitigation services at no cost for not less than 12 months, as specified.




Notes 1:

AB 400 (Alejo D) Department of Transportation: changeable message signs. Current Text: Amended: 3/26/2015 pdf html Status: 3/26/2015-Read second time and amended. Location: 3/26/2015-A. APPR. Summary: Current law provides that the Department of Transportation has full

possession and control of all state highways. Current law, the Outdoor Advertising Act, provides for the regulation by the department of advertising displays, as defined, within view of public highways. Current law also authorizes the department to install and maintain information signs along state highways. This bill would require the department,






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by June 30, 2016, to update its internal policies to allow displays of safety, transportation-related, and voting-relating messages on changeable message signs, as defined.




Notes 1:

AB 442 (Irwin D) Governor's Military Council. Current Text: Amended: 3/16/2015 pdf html Status: 3/17/2015-Re-referred to Com. on V.A. Location: 3/17/2015-A. V. A. Summary: Current law establishes the California Military Department, which contains the

California National Guard, the State Military Reserve, and other offices. This bill would codify the Governor's Military Council, under the direction of the California Military Department, and would provide for appointment to the council by the Governor . The bill would require that the appointments shall include, but not be limited to, bipartisan representatives from both houses of the Legislature . The provisions of this bill would be repealed on January 1, 2021.




Notes 1:

AB 498 (Levine D) Wildlife conservation: wildlife corridors. Current Text: Introduced: 2/23/2015 pdf html Status: 3/5/2015-Referred to Com. on W., P., & W. Location: 3/5/2015-A. W.,P. & W. Calendar: 4/14/2015 9 a.m. - State Capitol, Room 437 ASSEMBLY WATER, PARKS,

AND WILDLIFE, LEVINE, Chair Summary: Would declare that it is the policy of the state and all state agencies, with

regard to a project proposed in an area identified as a wildlife corridor, to encourage the project proponent to consult with the Department of Fish and Wildlife, and, wherever feasible and practicable, take steps to protect or restore the functioning of the wildlife corridor through various means, as applicable.




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AB 914 (Brown D) Toll facilities: County of San Bernardino. Current Text: Introduced: 2/26/2015 pdf html Status: 3/16/2015-Referred to Com. on TRANS. Location: 3/16/2015-A. TRANS. Calendar: 4/6/2015 1:30 p.m. - State Capitol, Room

4202 ASSEMBLY TRANSPORTATION, FRAZIER, Chair Summary: Would authorize the San Bernardino County Transportation Commission to













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construct and operate certain transportation facilities, as defined, on State Highway Routes 10 and 15, as toll facilities in the County of San Bernardino and, with the agreement of affected transportation agencies, in the Counties of Los Angeles and Riverside. The bill would require the toll revenues to be spent for specified transportation purposes and would authorize the commission to issue revenue bonds payable from toll revenues.




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AB 1068 (Allen, Travis R) California Environmental Quality Act: priority projects. Current Text: Introduced: 2/26/2015 pdf html Status: 3/19/2015-Referred to Coms. on NAT. RES. and JUD. Location: 3/19/2015-A. NAT. RES. Calendar: 4/13/2015 1:30 p.m. - State Capitol, Room 447 ASSEMBLY NATURAL

RESOURCES, WILLIAMS, Chair Summary: Would authorize each Member of the Legislature to nominate one project

within his or her respective district each year, and the Governor to designate those projects as priority projects if the projects meet specified requirements. The bill would require the Governor to provide a notice of the designation to the appropriate lead agency and to the Office of Planning and Research. The bill would require the lead agency to notify the public and interested stakeholders of the designation, as specified, thereby imposing a state-mandated local program.




Notes 1:

AB 1098 (Bloom D) Transportation: congestion management. Current Text: Amended: 3/26/2015 pdf html Status: 3/26/2015-Referred to Coms. on TRANS. and L. GOV. From committee chair,

with author's amendments: Amend, and re-refer to Com. on TRANS. Read second time and amended.

Location: 3/26/2015-A. TRANS. Summary: Current law requires a congestion management program to be developed,

adopted, and updated biennially by a designated agency for every county that includes an urbanized area. This bill would delete the traffic level of service standards as an element of a congestion management program and would delete related requirements, including the requirement that a city or county prepare a deficiency plan when highway or roadway level of service standards are not maintained. This bill contains other related provisions and other existing laws.




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AB 1115 (Salas D) State highways: litter cleanup and abatement.











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Current Text: Amended: 3/26/2015 pdf html Status: 3/26/2015-Referred to Com. on TRANS. From committee chair, with author's

amendments: Amend, and re-refer to Com. on TRANS. Read second time and amended. Location: 3/26/2015-A. TRANS. Summary: Current law requires the Department of Transportation to maintain the state

highways and, within its maintenance programs relating to litter cleanup and abatement, to assign a high priority to litter deposited along state highway segments adjoining storm drains, streams, rivers, waterways, beaches, the ocean, and other environmentally sensitive areas. Existing law authorizes the department to use litter traps in drains and any other effective technology in carrying out these responsibilities. This bill would instead require the department to use litter traps in drains and any other effective technology in carrying out these responsibilities.




Notes 1:

AB 1121 (Calderon D) Personal information. Current Text: Introduced: 2/27/2015 pdf html Status: 3/2/2015-Read first time. Location: 2/27/2015-A. PRINT Summary: Current law requires a business to take all reasonable steps to destroy, or

arrange for the destruction of, a customer's records within its custody or control containing personal information that are no longer to be retained by the business, as specified. Current law defines business, records, and personal information, among other terms, for these purposes. This bill would make technical, nonsubstantive changes to the definitions described above.




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AB 1265 (Perea D) Transportation projects: comprehensive development lease agreements. Current Text: Introduced: 2/27/2015 pdf html Status: 3/23/2015-Referred to Com. on TRANS. Location: 3/23/2015-A. TRANS. Summary: Current law authorizes the Department of Transportation and regional

transportation agencies to enter into comprehensive development lease agreements with public and private entities, or consortia of those entities, for certain transportation projects that may charge certain users of those projects tolls and user fees, subject to various terms and requirements. Current law provides that a lease agreement may not be entered into under these provisions on or after January 1, 2017. This bill would extend this authorization indefinitely and would delete obsolete cross-references and make technical changes to these provisions.














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Notes 1:

AB 1268 (Steinorth R) California Environmental Quality Act: exemption for a housing project.

Current Text: Amended: 3/26/2015 pdf html Status: 3/26/2015-Referred to Com. on NAT. RES. From committee chair, with author's

amendments: Amend, and re-refer to Com. on NAT. RES. Read second time and amended.

Location: 3/26/2015-A. NAT. RES. Summary: Under current law, a housing project qualifies for an exemption from CEQA if

certain requirements are met, including the requirement that the site is not located within the boundaries of a state conservancy. This bill would eliminate the requirement that the site not be located within the boundaries of a state conservancy.




Notes 1:

AB 1284 (Baker R) Bay Area state-owned toll bridges: Toll Bridge Program Oversight Committee.

Current Text: Introduced: 2/27/2015 pdf html Status: 3/23/2015-Referred to Coms. on TRANS. and L. GOV. Location: 3/23/2015-A. TRANS. Calendar: 4/6/2015 1:30 p.m. - State Capitol, Room

4202 ASSEMBLY TRANSPORTATION, FRAZIER, Chair Summary: Current law requires the Department of Transportation and the Bay Area Toll

Authority to form the Toll Bridge Program Oversight Committee. Current law provides that the committee is not a state body or a local agency for the purposes of the open meeting laws applicable to either state bodies or local agencies known as the Bagley-Keene Open Meeting Act and the Ralph M. Brown Act, respectively. This bill would delete that provision and would thereby make the Toll Bridge Program Oversight Committee subject to the Bagley-Keene Open Meeting Act.




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AB 1364 (Linder R) California Transportation Commission. Current Text: Introduced: 2/27/2015 pdf html Status: 3/23/2015-Referred to Com. on TRANS. Location: 3/23/2015-A. TRANS. Summary: Current law vests the California Transportation Commission with specified

powers, duties, and functions relative to transportation matters. Current law requires the commission to retain independent authority to perform the duties and functions prescribed to it under any provision of law. This bill would exclude the California Transportation Commission from the Transportation Agency and establish it as an entity in the state government. The bill would also make conforming changes.

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Transportation Corridor Agency (TCA)


Notes 1:

AB 1384 (Baker R) Toll facilities: Metropolitan Transportation Commission Current Text: Introduced: 2/27/2015 pdf html Status: 3/2/2015-Read first time. Location: 2/27/2015-A. PRINT Summary: Current law authorizes the Bay Area Toll Authority to make direct

contributions to the Metropolitan Transportation Commission in furtherance of the exercise of the authority's powers, including contributions in the form of personnel services, office space, overhead, and other funding necessary to carry out the function of the authority, with those contributions not to exceed 1% of the gross annual bridge revenues. This bill would make a technical, nonsubstantive change to this limitation on contributions.




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AB 1408 (Hadley R) Notaries public: fees. Current Text: Amended: 3/26/2015 pdf html Status: 3/26/2015-Referred to Com. on JUD. From committee chair, with author's

amendments: Amend, and re-refer to Com. on JUD. Read second time and amended. Location: 3/26/2015-A. JUD. Summary: Current law prescribes the maximum fees that a notary public may charge for

specified services. Current law prohibits a notary public from charging a fee to notarize signatures on vote by mail ballot identification envelopes or other voting materials or applications by United States military veterans for specified veteran’s benefits. This bill would delete the above-described maximum fee limitations for services by a notary public.




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ACA 4 (Frazier D) Local government transportation projects: special taxes: voter approval.

Current Text: Introduced: 2/27/2015 pdf html Status: 3/2/2015-Read first time. Location: 2/27/2015-A. PRINT Summary: Would provide that the imposition, extension, or increase of a special tax by a

local government for the purpose of providing funding for local transportation projects, as defined, requires the approval of 55% of its voters voting on the proposition. The measure would also make conforming and technical, nonsubstantive changes. This measure would also provide that it shall become effective immediately upon approval by the voters and shall apply to any local measure imposing, extending, or increasing a









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special tax for local transportation projects submitted at the same election. Organization Position Priority Assigned Subject Group Transportation



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ACR 18 (Gordon D) Parks Make Life Better! Month. Current Text: Introduced: 2/4/2015 pdf html Status: 3/19/2015-From committee: Be adopted. Ordered to Third Reading. (Ayes 11.

Noes 0.) (March 19). Location: 3/19/2015-A. THIRD READING Summary: This measure would recognize the importance of access to local parks, trails,

open space, and facilities for the health and development of all Californians and would declare the month of July 2015 as "Parks Make Life Better!" Month.




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SB 16 (Beall D) Department of Transportation: budgetary cost-savings plan: state highway operation and protection program.

Current Text: Amended: 3/26/2015 pdf html Status: 3/26/2015-From committee with author's amendments. Read second time and

amended. Re-referred to Com. on RLS. Location: 3/26/2015-S. RLS. Summary: Would require the Department of Transportation, by April 1, 2016, and as part

of its budget for the 2016-17 fiscal year, to prepare a plan to identify up to $200,000,000 annually in cost savings from its budget, and to submit the plan to the appropriate policy committees of the Senate and the Assembly.

This bill contains other related provisions and other existing laws. Organization Position Priority Assigned Subject Group Transportation



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SB 39 (Pavley D) Vehicles: high-occupancy vehicle lanes. Current Text: Introduced: 12/1/2014 pdf html Status: 1/15/2015-Referred to Com. on T. & H. Location: 1/15/2015-S. T. & H. Summary: Current federal law, until September 30, 2017, authorizes a state to allow

specified labeled vehicles to use lanes designated for high-occupancy vehicles (HOVs). This bill would increase the number of those identifiers that the DMV is authorized to issue to an unspecified amount. This bill contains other related provisions and other current laws.

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Notes 1:

SB 122 (Jackson D) California Environmental Quality Act: record of proceedings. Current Text: Amended: 3/26/2015 pdf html Status: 3/26/2015-From committee with author's amendments. Read second time and

amended. Re-referred to Com. on E.Q. Location: 3/26/2015-S. E.Q. Calendar: 4/15/2015 9:30 a.m. - Room 3191 SENATE ENVIRONMENTAL

QUALITY, WIECKOWSKI, Chair Summary: CEQA establishes a procedure for the preparation and certification of the

record of proceedings upon the filing of an action or proceeding challenging a lead agency's action on the grounds of noncompliance with CEQA. This bill would require the lead agency, at the request of a project applicant and consent of the lead agency, to prepare a record of proceedings concurrently with the preparation of a negative declaration, mitigated negative declaration, EIR, or other environmental document for projects. This bill contains other related provisions.




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SB 154 (Huff R) California Environmental Quality Act. Current Text: Introduced: 2/2/2015 pdf html Status: 2/19/2015-Referred to Com. on RLS. Location: 2/19/2015-S. RLS. Summary: The California Environmental Quality Act (CEQA) requires a lead agency, as

defined, to prepare, or cause to be prepared by contract, and certify the completion of, an environmental impact report, as defined, on a project that may have a significant effect on the environment, or to adopt a negative declaration if it finds that the project will not have that effect. This bill would make technical, nonsubstantive changes to the definition of "environmental impact report."




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SB 158 (Huff R) Transportation projects: comprehensive development lease agreements. Current Text: Amended: 3/26/2015 pdf html Status: 3/26/2015-From committee with author's amendments. Read second time and

amended. Re-referred to Com. on RLS. Location: 3/26/2015-S. RLS. Summary: Would authorize the Department of Transportation or a regional

transportation agency to enter into a comprehensive development lease on or after






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January 1, 2017, for a proposed transportation project on the state highway system if a draft environmental impact statement or draft environmental impact report for the project was released by the department in March 2015 for public comment. This bill contains other related provisions.




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SB 194 (Cannella R) Vehicles: high-occupancy vehicle lanes. Current Text: Introduced: 2/10/2015 pdf html Status: 2/19/2015-Referred to Com. on RLS. Location: 2/19/2015-S. RLS. Summary: Current law authorizes local authorities and the Department of Transportation

to establish exclusive or preferential use of highway lanes for high-occupancy vehicleson highways under their respective jurisdictions. This bill would make technical, nonsubstantive changes to that provision.




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SB 257 (Bates R) Vehicles: specialized license plates. Current Text: Introduced: 2/18/2015 pdf html Status: 2/26/2015-Referred to Com. on RLS. Location: 2/26/2015-S. RLS. Summary: Current law establishes a specialized license plate program under which the

Department of Motor Vehicles (DMV) issues specialized license plates on behalf of a sponsoring state agency that meets certain requirements. Under current law, the DMV charges specified fees related to the issuance of those plates and deposits the fees, less the DMV's costs, in the Specialized License Plate Fund. This bill would make a technical, nonsubstantive change to that provision.




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SB 317 (De León D) The Safe Neighborhood Parks, Rivers, and Coastal Protection Bond Act of 2016.

Current Text: Introduced: 2/23/2015 pdf html Status: 3/18/2015-Set for hearing April 14. Location: 3/5/2015-S. N.R. & W. Calendar: 4/14/2015 9:30 a.m. - Room 112 SENATE NATURAL RESOURCES AND

WATER, PAVLEY, Chair Summary: Under current law, various measures have been approved by the voters to

provide funds for park, river, and coastal protections and programs. This bill would enact


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the Safe Neighborhood Parks, Rivers, and Coastal Protection Bond Act of 2016, which, if adopted by the voters at the November 8, 2016, statewide general election, would authorize the issuance of bonds in an unspecified amount pursuant to the State General Obligation Bond Law to finance a safe neighborhood parks, rivers, and coastal protection program.




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SB 461 (Hernandez D) Toll bridges and facilities: funds. Current Text: Introduced: 2/25/2015 pdf html Status: 3/5/2015-Referred to Com. on RLS. Location: 3/5/2015-S. RLS. Summary: Under current law, all tolls or other revenue received from the operation of toll

bridges and related facilities that were acquired or constructed with bond funding are deposited into a special fund designated for the particular toll bridge or facility that produced the toll or revenue. This bill would make nonsubstantive changes to the provision specifying deposit of this particular revenue into the designated special fund.




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SB 491 (Committee on Transportation and Housing) Transportation: omnibus bill. Current Text: Introduced: 2/26/2015 pdf html Status: 3/12/2015-Referred to Com. on T. & H. Location: 3/12/2015-S. T. & H. Summary: Current law, in the area under the jurisdiction of the Bay Area Air Quality

Management District, requires at least 40% of fee revenues to be proportionately allocated to each county within the district, and requires an entity receiving these revenues to hold at least one annual public meeting for the purpose of adopting criteria for expenditure of the funds and to review those expenditures. This bill would delete the requirement for an annual public meeting to adopt criteria for expenditure of funds, unless the criteria have been modified from the previous year. This bill contains other related provisions and other existing laws.




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SB 570 (Jackson D) Personal information: privacy: breach. Current Text: Introduced: 2/26/2015 pdf html Status: 3/12/2015-Referred to Com. on RLS. Location: 3/12/2015-S. RLS. Summary: Current law requires a person or business conducting business in California












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that owns or licenses computerized data that includes personal information, as defined, to disclose a breach of the security of the system in the most expedient time possible and without unreasonable delay, as specified. This bill would make a nonsubstantive change to this provision.




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SB 584 (Nguyen R) California Environmental Quality Act. Current Text: Introduced: 2/26/2015 pdf html Status: 3/12/2015-Referred to Com. on RLS. Location: 3/12/2015-S. RLS. Summary: The California Environmental Quality Act (CEQA) requires a lead agency, as

defined, to prepare, or cause to be prepared by contract, and certify the completion of, an environmental impact report, as defined, on a project that may have a significant effect on the environment, or to adopt a negative declaration if it finds that the project will not have that effect. This bill would make technical, nonsubstantive changes to the definition of "environmental impact report."




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SB 710 (Galgiani D) Joint exercise of powers: financing. Current Text: Introduced: 2/27/2015 pdf html Status: 3/19/2015-Referred to Coms. on GOV. & F. and APPR. Location: 3/19/2015-S. G. & F. Summary: Would, until January 1, 2022, authorize a joint powers authority to issue or

cause to be issued bonds and enter into a loan agreement for the financing or refinancing of a project that is situated in another state, including working capital related to that project, if the project and its financing meets certain conditions. This bill would require the Legislative Analyst, on or before January 1, 2021, to prepare and submit to the Legislature a report on the issuance of those bonds and the financing of those projects.




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