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12 December 6, 2013 State Route 91 Advisory• • • Jennifer Harmon (RCTC) m OCTA AGENDA State Route 91 Advisory Committee Meeting Committee Members Bob Magee, RCTC, Chairman Michael Hennessey, OCTA, Vice Chairman Gail Eastman, OCTA Berwin Hanna, RCTC Kevin Jeffries, RCTC Al Murray, OCTA Tim Shaw, OCTA Karen Spiegel, RCTC Todd Spitzer, OCTA John Tavaglione, RCTC Jeffrey Lalloway, OCTA, Alternate Ron Roberts, RCTC, Alternate Greg Winterbottom, OCTA, Alternate Ed Graham, SANBAG, Ex-Officio Ryan Chamberlain, Ca/trans Dist. 12, Ex-Officio Basem Muallem, Ca/trans Dist. 8, Ex-Officio Orange County Transportation Authority Headquarters 600 South Main Street First Floor -Room 154 Orange, California Friday, December 6, 2013, at 9:00 a.m. Any person with a disability who requires a modification or accommodation in order to participate in this meeting should contact the OCTA Clerk of the Board, telephone (714) 560-5676, no less than two (2) business days prior to this meeting to enable OCTA to make reasonable arrangements to assure accessibility to this meeting. Agenda descriptions are intended to give members of the public a general summary of items of business to be transacted or discussed. The posting of the recommended actions does not indicate what action will be taken. The Committee may take any action which it deems to be appropriate on the agenda item and is not limited in any way by the notice of the recommended action. All documents relative to the items referenced in this agenda are available for public inspection at www.octa.net or through the Clerk of the Board's office at the OCTA Headquarters, 600 South Main Street, Orange, California. Call to Order Pledge of Allegiance Member Spiegel 1. Public Comments Special Calendar There are no Special Calendar matters. Page 1of4 COMM-SR91AC-00003 m OCTA AGENDA State Route 91 Advisory Committee Meeting Consent Calendar (Items 2 through 4) All items on the Consent Calendar are to be approved in one motion unless a Committee Member or a member of the public requests separate action or discussion on a specific item. 2. Approval of Minutes Of the August 2, 2013, State Route 91 Advisory Committee meeting. 3. 91 Express Lanes Monthly Status Reports Kirk Avila, General Manager of the 91 Express Lanes Orange County Transportation Authority Overview The 91 Express Lanes status reports for the months of July 2013 through October 2013 have been prepared for State Route 91 Advisory Committee review. The reports highlight operational and financial activities. Recommendation Receive and file the 91 Express Lanes Monthly Status Reports for the months of July 2013 through October 2013. 4. Fiscal Year 2012-13 91 Express Lanes Annual Financial Statements Kirk Avila, General Manager of the 91 Express Lanes Orange County Transportation Authority Overview Vavrinek, Trine, Day and Co., LLP, an independent accounting firm, has completed the annual audit of the 91 Express Lanes financial statements for fiscal year 2012-13 and has issued its independent auditor's opinion. A copy of the audited financial statements is attached for the State Route 91 Advisory Committee review. Recommendation Receive and file the fiscal year 2012-13, 91 Express Lanes Annual Financial Statements. Page 2 of 4 • • • • • • m OCTA AGENDA State Route 91 Advisory Committee Meeting Regular Calendar There are no Regular Calendar matters. Discussion Items 5. 91 Express Lane/State Route 241 Direct Connector Update Kia Mortazavi, Executive Director of Planning 6. Orange County Transportation Authority The Orange County Transportation Authority and the Transportation Corridor Agencies are working together to implement a direct connector between the State Route 241 and the 91 Express Lanes. The project will provide additional transportation system connectivity, and staff will brief the Committee on the status of project activities. Transportation Corridor Agencies Non-Stop Travel for All Customers Coming Soon Lisa Telles, Chief Communications Officer Transportation Corridor Agencies Staff from the Transportation Corridor Agencies will present information about plans to transition to all electronic tolling on the State Route 73, State Route 241, and State Route 261. 7. Use of 91 Express Lanes Excess Toll Revenues Update Kia Mortazavi, Executive Director of Planning Orange County Transportation Authority The Orange County Transportation Authority prepares an annual State Route 91 Implementation Plan that identifies potential projects eligible for 91 Express Lanes excess toll revenues. 8. Confidential Plate Update Kirk Avila, General Manager of the 91 Express Lanes Orange County Transportation Authority Staff will provide State Route 91 Advisory Committee Members with an update on confidential plate legislation . Page 3 of 4 m rt, OCTA AGENDA State Route 91 Advisory Committee Meeting 9. General Manager's Report 10. Committee Members' Reports 11. Closed Session There is no Closed Session scheduled. 12. Adjournment The next regularly scheduled meeting of this Committee is to be determined and will take place in Corona, California. Page 4 of 4 • • • • • • m OCTA MINUTES State Route 91 Advisory Committee Meeting Committee Members Present Bob Magee, RCTC, Chairman Gail Eastman, OCTA Berwin Hanna, RCTC Kevin Jeffries, RCTC Al Murray, OCTA Tim Shaw, OCTA Karen Spiegel, RCTC Todd Spitzer, OCTA John Tavaglione, RCTC Ryan Chamberlain, Ca/trans Dist. 12, Ex-Officio Basem Muallem, Ca/trans Dist. 8, Ex-Officio Committee Members Absent Michael Hennessey, OCTA, Vice Chairman Jeffrey Lal/oway, OCTA, Alternate Ron Roberts, RCTC, Alternate Greg Winterbottom, OCTA, Alternate Ed Graham, SANBAG, Ex-Officio Call to Order Staff Present Anne Mayer, RCTC, Executive Director Darrell Johnson, OCTA, Chief Executive Officer Kirk Avila, OCTA, General Manager, 91 Express Lanes Laurena Weinert, OCTA, Assistant Clerk of the Board Mary K. Burton, OCTA, Deputy Clerk of the Board Steven DeBaun, RCTC, Legal Counsel Kennard R. Smart, Jr., OCTA, General Counsel OCTA and RCTC staff and General Public The August 2, 2013, regular meeting of the State Route 91 Advisory Committee was called to order by Committee Chairman Magee at 9:05 a.m. at the City of Corona - City Hall, 400 South Vicentia Avenue, Council Chambers -First Floor, Corona, California. Pledge of Allegiance Member Spiegel led in the Pledge of Allegiance. 1. Public Comments No public comments were received. Special Calendar There were no Special Calendar matters . August 2, 2013 Page 1of5 m OCTA MINUTES State Route 91 Advisory Committee Meeting Consent Calendar (Items 2 and 3) 2. Approval of Minutes A motion was made by Member Shaw, seconded by Member Spiegel, and declared passed by those present, to approve minutes of the May 1, 2013, Special meeting. Members Hanna and Jeffries abstained on this item due to not being in attendance for the meeting. 3. 91 Express Lanes Monthly Status Reports A motion was made by Member Shaw, seconded by Member Spiegel, and declared passed by those present, to receive and file the 91 Express Lanes Monthly Status Reports for the months of March 2013 through June 2013. Regular Calendar 4. 91 Express Lanes Toll Violations Process Overview Kirk Avila, OCTA General Manager of the 91 Express Lanes, presented the 91 Express Lanes toll violations process, as follows: • Background • How transactions/violations are recorded • Collection process • Confidential license plates • Other deterrent measures Member Murray: • Inquired about the special enforcement days budget amount and if it needed to be increased. Mr. Avila responded that the California Highway Patrol (CHP) enforcement services budget is approximately $500,000 per year, and stated that the budget amount was increased slightly for the special enforcement days. • Inquired about the enforcement efforts public outreach (i.e., digital displays, signage, etc.), and Mr. Avila responded that there is no additional signage; however, in the next 91 Express Lanes quarterly report, there will be a questions and answers article with a CHP officer highlighting the enforcement efforts. August 2, 2013 Page 2 of 5 • • • • • • m OCTA MINUTES State Route 91 Advisory Committee Meeting 4. (Continued) • Requested that a letter be sent to the Orange County police chiefs and police officers' associations regarding the confidential plates going through the toll roads. Member Spitzer: • Inquired if legislation would remedy the confidential license plate concerns. Mr. Avila responded that: 1) the confidential plates toll violation collection rate is about 65 percent, 2) given the trips on the lanes are small amounts that are not resolved, and 3) he believes OCTA's efforts are good. • Asked Member Chamberlain if the Caltrans' administration would look into the confidential license plate concerns as they go forward with exploring managed lanes as a public policy. Member Chamberlain responded that at this time, Caltrans has not reviewed and just now is exploring toll road opportunities/concerns . • Requested that Caltrans review the confidential plate toll road concerns and bring it back to this Committee if legislation is needed. Member Chamberlain responded that he would obtain feedback from the Caltrans administration and bring it back to this Committee. Member Spiegel requested that the chief/police officers' associations correspondence also be sent to Riverside, San Bernardino, and Los Angeles counties' associations. In addition, should potential confidential plate toll legislation move forward, having the counties work together would provide stronger support for the bill. Darrell Johnson, OCTA Chief Executive Officer, suggested that OCTA and RCTC could examine the confidential plate concerns as both agencies developed their annual state and legislative platforms, as well as reach out to the California toll operators working group, self-help county coalition, the new Secretary of Transportation, Anthony Foxx, and Caltrans. Anne Mayer, RCTC Executive Director, reported that RCTC met with the rating agencies and potential investors regarding the recently sold bonds in Riverside County, and there were several questions regarding the statistics related to toll violations and policies . A motion was made by Member Hanna, seconded by Member Murray, and declared passed by those present, to receive and file as an information item. August 2, 2013 Page 3 of 5 m OCTA MINUTES State Route 91 Advisory Committee Meeting Discussion Items 5. State Route 91 Corridor Improvement Project Update Michel Blomquist, RCTC Toll Program Director, presented an update on the State Route 91 Corridor Improvement project as follows: • Major milestones completed • Environmental approval status • Selection of design-builder • Award of design-build contract • Project scope summary and financing • Plan of finance overview • Summary of Transportation Infrastructure Finance and Innovation Act loan • Agency agreements • Right-of-way acquisition: 249 parcels • Key project milestone dates • Anne Mayer, RCTC Executive Director, announced the tentative date of • December 11 for RCTC's 91 Express Lanes groundbreaking event. Member Spitzer requested that past Committee/Board Members involved with the 91 Express Lanes be invited to the upcoming RCTC groundbreaking event. 6. 91 Express Lanes Debt Kirk Avila, OCTA General Manager of the 91 Express Lanes, reported on OCTA's issuance of debt for the 91 Express Lanes. On July 22, 2013, OCTA's Board authorized refinancing of the 91 Express Lanes debt, which was priced on July 30 with a savings of $18 million over the life of the bonds and scheduled to close on August 8. August 2, 2013 Page 4 of 5 • • m OCTA MINUTES State Route 91 Advisory Committee Meeting 7. General Manager's Report Kirk Avila, OCTA General Manager of the 91 Express Lanes, reported that: • The first 27 days of July traffic volumes were up 1.8 percent and revenues up 1 . 3 percent. • Fiscal Year 2012-13 ended with revenues up 1.1 percent and traffic volumes up 1.2 percent. • In December 2012, the general purpose lane addition project was completed from the State Route (SR) 241 to SR-55 in both wesUeastbound directions. • Since the December 2012 general purpose lane project opening, the 91 Express Lanes in December 2012 and January/February 2013 had decreased traffic volumes when compared to the prior year. However, after February, traffic volumes increased on an average of 1.6 percent compared to the prior year. • 8. Committee Members' Reports • Member Spitzer requested a review and discussion at the OCTA Finance and Administration (F&A) Committee regarding the 91 Express Lanes one-time customer appreciation component with the excess savings, as well as provide an update to this Committee regarding the F&A Committee's discussions. Mr. Avila responded that Member Spitzer's request could be reviewed; however, he cautioned not using incentives with respect to pricing on the facility. 9. Adjournment The meeting adjourned at 9:55 a.m. The next regularly scheduled meeting of this Committee will be held at 9:00 a.m., Friday, December 6, 2013, at the OCTA Headquarters. ATTEST Bob Magee Committee Chairman August 2, 2013 Laurena Weinert OCT A Assistant Clerk of the Board Page 5 of 5 •m OCTA • • December 6, 2013 To: State Route 91 Advisory Committee From: Kirk Avila~neral Manager, 91 Express Lanes Subject: 91 Express Lanes Monthly Status Reports Overview The 91 Express Lanes Monthly Status Reports for the months of July 2013 through October 2013 have been prepared for State Route 91 Advisory Committee review. The reports highlight operational and financial activities. Recommendation Receive and file the 91 Express Lanes Monthly Status Reports for the months of July 2013 through October 2013. Background Monthly status reports are prepared to document 91 Express Lanes activity and are provided for State Route 91 Advisory Committee review. Discussion The July 2013 status report for the 91 Express Lanes is provided in Attachment A. In July 2013, traffic volume in the 91 Express Lanes increased 2.9 percent and gross potential toll revenue increased 3.8 percent as compared to the prior year. The August 2013 status report is provided in Attachment B. In August 2013, traffic volume increased by 1.4 percent over the same period in 2012, and gross potential toll revenue increased by 1.8 percent. The September 2013 status report for the 91 Express Lanes is provided in Attachment C. In September 2013, traffic volume increased by 1.8 percent over the same period in 2012, and gross potential toll revenue increased by 4.8 percent. Orange County Transportation Authority 550 South Main Street/ P. 0. Box 14184 I Orange I California 92863-1584 I (714) 560-0CTA (6282) 91 Express Lanes Monthly Status Reports Page2 The October 2013 status report for the 91 Express Lanes is provided in Attachment D. In October 2013, traffic volume in the 91 Express Lanes increased 4.4 percent over the same period in 2012, and gross potential toll revenue increased by 5.8 percent as compared to the prior year. Fiscal year 2013-14 year-to-date (YTD) traffic volume and toll revenue as of the end of October 2013 increased when compared to the prior year, with YTD traffic volume increasing by 2.6 percent, and YTD potential toll revenue up by 4 percent. Staff will continue to closely monitor traffic and revenue data and report back to the State Route 91 Advisory Committee regularly. Summary The 91 Express Lanes Monthly Status Reports for the months of July 2013 through October 2013 are provided for review. The reports highlight operational and financial activities. Attachments A. 91 Express Lanes Status Report-As of July 31, 2013 B. 91 Express Lanes Status Report-As of August 31, 2013 C. 91 Express Lanes Status Report -As of September 30, 2013 D. 91 Express Lanes Status Report -As of October 31, 2013 • • • ATTACHMENT A • m OCTA Orange County Transportation Authority • As of July 31, 2013 • • • • Operations Overview Traffic and Revenue Statistics Total traffic volume on the 91 Express Lanes for July 2013 was 1,078,956. This represents a daily average of 34,805. This is a 2.9% increase in total traffic volume from the same period last year when traffic levels totaled 1,048, 179. Potential toll revenue for the month was $3,009,379 which represents an increase of 3.8% from the prior year's total of $2,898,566. Carpool percentage for the month was 26.14% as compared to the previous year's rate of 26.3%. Month-to-date traffic and revenue data are summarized in the table below. The following trip and revenue statistics tables represent all trips taken on the 91 Express Lanes and associated potential revenue for the month of July 2013. Current Month-to-Date (MTD) as of July 31, 2013 (Fiscal Year (FY) 2013-14 data is for the corresponding month in that fiscal year) Average Full Toll Lanes $3.69 $3.72 ($0.03) Average 3+ Lanes $0.25 $0.26 ($0.01) Average Revenue Per Trip $2.79 $2.83 ($0.04) (0.8%) $3.66 0.8% (3.8%) $0.26 (3.8%) (i.4%) $2.77 0.7% 2 Traffic and Revenue Summary The chart below reflects the total trips breakdown between Full Toll trips and HOV3+ trips for FY 2013-14 on a monthly basis. 1,400,000 1,225,000 1,050,000 GI 875,000 E :I 0 > 700,000 525,000 350,000 175,000 FY 2013-14 Traffic Volume Overview Jul-13 Aug-13 Sep-13 Oct-13 Nov-13 Dec-13 Jan-14 Feb-14 Mar-14 Apr-14 May-14 Jun-14 Month The chart below reflects the gross potential revenue breakdown between Full Toll trips and HOV3+ trips for FY 2013-14 on a monthly basis. $3,100,000 FY 2013-14 Revenue Summary $3,000,000 $2,900,000 $2,700,000 $2,600,000 $2,500,000 Jul-13 Aug-13 Sep-13 Oct-13 Nov-13 Dec-13 Jan-14 Feb-14 Mar-14 Apr-14 May-14 Jun-14 Month 8Full Toll Lanes 83+ Lanes 3 • • • • • • Peak traffic hour in the eastbound direction reached or exceeded 90% or more of defined capacity twice during the month of July 2013. As demonstrated on the next chart, westbound peak hour traffic volumes top out at 63% of defined capacity. EASTBOUND PEAK-HOUR VOLUMES Monday 07/01/13 Tuesday 07/02/13 Wednesday 07/03/13 Thursday PM Time ,~··;i:H()vJ VQJ. · .. cAii.'~ l>tice ··:~·$N<1lz$Pca1>. 1400 -1500 $4.40 1500 -1600 $4.75 1600 -1700 $4.55 1700. 1800 $4.85 1800 -1900 $4.75 1900. 2000 $3.35 PM Time 1400. 1500 $4.40 1500. 1600 $4.75 1600. 1700 $4.55 1700 -1800 $4.85 1800 • 1900 $4.75 1900. 2000 $3.35 285 496 565 507 482 337 303 523 538 474 435 304 1,569 46% $4.40 328 1,705 2,360 69% $3.70 630 2,804 3,012 89% $5.80 575 2,921 2,796 82% $5.25 442 2,461 2,380 70% $3.60 580 2,856 1.295 38% $3.35 356 1,682 Tuesday 1,573 46% $4.40 296 1,544 2,467 73% $3. 70 533 2,563 2,793 82% $5.80 544 2,795 2,685 79% $5.25 504 2,901 2, 172 64% $3.60 517 2,673 1,220 36% $3.35 333 1,566 50% 82% 86% 72% 84% 49% 45% 75% 82% 85% 79% 46% . ~·Mildv• . . W' !•ii.1' $3.10 $9.55 $9.35 $6.00 $5.65 $5.30 $4.40 $3.95 $7.00 $L50 $3.60 $3.35 424 2,516 74% $3.65 598 2,879 85% $3.65 592 2,924 86% $3.65 463 2,615 77% $3.65 504 2,331 69% $3.65 433 1,663 49% $3.65 342 1,695 50% $4.55 533 2,824 83% $4.45 549 2,953 87% $9.20 3,094'~ 91% $8.55 569 2,878 85% $4.40 401 1,797 53% $4.85 •!i~OV'' 211 193 154 168 189 227 325 524 541 495 492 384 Monday 07115113 ~ .yqt;f~i;~p;) Tuesday 07116/13 Wednesday 07/17/13 Thursday PM Time 1400 -1500 $4.40 297 1,529 45% 1500. 1600 $4.75 541 2,525 74% 1600. 1700 $4.55 511 2,741 81% 1700. 1800 $4.85 443 2,672 79% 1800. 1900 $4.75 504 2,270 67% 1900. 2000 $3.35 320 1,306 38% Monday 07/22113 PM Time 1400. 1500 $4.40 302 47% 1500 -1600 $4.75 507 2,517 74% 1600. 1700 $4.55 519 2,824 83% 1700. 1800 $4.85 456 2,764 81% 1800. 1900 $4.75 460 2,189 64% 1900 . 2000 $3. 35 295 1,240 36% Monday 07/29/13 1400 -1500 $4.40 312 1,557 46% 1500. 1600 $4.75 568 2,533 75% 1600. 1700 $4.55 536 2,861 84% 1700. 1800 $4.85 443 2,621 77% 1800. 1900 $4.75 477 2,268 67% 1900 . 2000 $3.35 301 1.238 36% ,,,,, c~ ~q)' HOIT. Vol.. ;;;<:,;.~ ~::.;: $4.40 342 1,710 50% $4.40 318 1,709 50% $4.55 $3.70 528 2,637 78% $3.95 541 2,695 79% $4.45 $5.80 557 2,925 86% $7.00 543 2,920 86% $9.20 $5.25 481 2,831 83% $6.50 533 2,849 84% $8.55 $3.60 556 2,764 81% $3.60 512 2,714 80% $4.40 $3.35 365 1,688 50% $3.35 432 1,855 55% $4.85 07123/13 Wednesday 07/24113 cl!':i 1!)n~ Hov., •Vol: $3.70 $5.80 $5.25 $3.60 $3.35 49% $4.40 559 2,687 79% $3.95 541 2,925 86% $7.bO 488 2,786 82% $6.50 531 2,573 76% $3.60 396 1,570 46% $3.35 Tuesday 07130/13 $4.40 369 1,753 52% $4.40 $3.70 614 2,831 83% $3.95 $5.80 548 2,958 87% $7.00 $5.25 514 3,031 89% $6.50 $3.60 530 2,573 76% $3.60 $3.35 381 1,565 46% $3.35 345 1,745 51% $4.55 592 2,838 83% $4.45 . s;i112;f!to%'~ $9.20 534 2,914 86% $8.55 507 2,567 76% $4.40 460 1,916 56% $4.85 334 614 580 455 535 479 1,737 2,861 3,014 2,783 2,845 2,151 "' 357 602 564 519 537 442 364 594 599 558 574 430 07/04113 Friday 07/05/13 V#I. ··~p • '~ : HOV.> v .. ii · ;.;~. 587 17% $4.20 369 1,508 44% 563 17% $4.20 393 1,669 49% 466 14% $4.20 386 1,475 43% 427 13% $4.20 377 1,442 42% 435 13% $4.20 334 1,113 33% 475 14% $4.20 301 879 26% 07111113 Friday 07/12113 v~ ... ;;cap: Price tt~il'.1;:.v01;~ <. ;. 1,868 55% $3.10 479 2,662 78% 2,807 83% $9.55 6n 2.922 86% 2,894 85% $9.35 536 2,898 85% 2,918 86% $6.00 487 2,930 86% 2, 782 82% $5.65 466 2,360 69% 1, 706 50% $5.30 439 1,746 51% 07/18/13 ... 1,896 2,851 2,971 2,889 2,597 1,892 1,917 2,851 3,035 2,929 2,711 1,742 Friday 07/19/13 11fice •HOV, V:91-~. 56% $3.10 455 2,665 78% 84% $9.55 658 2,933 86% 87% $9.35 509 2,810 83% 85% $6.00 428 2,303 68% 76% $5.65 549 2,669 79% 56% $5.30 428 1,666 49% Friday 07126/13 !J'tij:'e './iltlf va1 •. -· .~ · 56% $3.10 447 2,578 76% 84% $9.55 619 2,824 83% 89% $9.35 540 2,860 84% 86% $6.00 80% $5.65 51% $5.30 482 2,657 78% 527 2,243 66% 468 1,608 47% 4 WESTBOUND PEAK-HOUR VOLUMES AM lime 0400 -0500 $2.60 0500 -0600 $4.20 0600 -0700 $4.40 0700 -0800 $4.90 0800 -0900 $4.40 0900 -1000 $3.50 276 741 536 1,834 485 2,015 369 1,782 284 1,640 241 1,225 Monday 07/08/13 AMlime .. ~:-jlffot:i~1i·~i1! 0400-0500 $2.60 288 821 0500-0600 $4.20 466 1,611 0600-0700 $4.40 467 2,017 0700-0800 $4.90 350 1,693 0800-0900 $4.40 303 1,751 0900-1000 $3.50 240 1,357 22% $2.60 54% $4.20 59% $4.40 52% $4.90 48% $4.40 36% $3.50 280 580 524 379 293 294 Tuesday 733 22% 1,797 53% 2,084 61% $4.20 1,752 52% $4.75 1,728 51% $4.20 1,434 42% $3.50 287 534 492 330 277 328 07/09113 Wednesday 706 21% $1.40 1,753 52% $1.40 1.998 59% $1.40 1,379 41% $1.40 1,610 47% $2.20 1,756 52% $3.65 26 73 87 113 159 247 07110113 Thursday -; ,.1·:,;.fftlVf;;i.idj;·•~t 1Sw!Jt«wlt~L ~-· . 24% $2.60 285 696 20% $2.60 321 747 22% $2.60 307 47% $4.20 546 1,806 53% $4.20 560 1,777 52% $4.20 551 59% $4.40 467 1,981 58% $4.40 490 2,008 59% $4.40 499 50% $4.90 387 1,837 54% $4.90 414 1,898 56% $4.90 419 52% $4.40 292 1,660 49% $4.40 325 1,717 51% $4.40 323 40% $3.50 254 1,483 44% $3.50 287 1.539 45% $3.50 249 62 139 205 257 368 525 07111113 'j• 744 1,802 2,130 1,859 1,753 1,566 2% $1.40 4% $1.40 6% $2.20 8% $2.60 11% $2.60 15% $3.35 07105113 90 237 7% 210 731 22% 193 798 23% 194 728 21% 204 755 22% 252 797 23% Friday 07112113 ·:· . 11ffii.0'. 'lliYO!Tiil!{Gat('. 22% $2.60 273 676 2.0% 53% $4.05 481 1,627 48% 63% $4.20 466 1,839 54% 55% $4.75 353 1,609 47% 52% $4.20 298 1,554 46% 46% $3.50 281 1,255 37% Monday 07/16113 Wednesday 07117/13 Thursday 07/18/13 Friday 07119113 0400 -0500 $2.60 302 313 718 21% $2.60 314 785 23% $2.60 310 735 22% $2.60 275 652 19% 0500 -0600 $4.20 538 545 1.808 53% $4.20 276 661 19% $4.20 557 1,828 54% $4.05 508 1,686 50% 0600-0700 $4.40 471 511 2, 125 63% $4.40 242 786 23% $4.40 514 2, 103 62% $4.20 396 1,660 49% 0700-0800 $4.90 362 736 22% $2.60 1,802 53% $4.20 2,046 60% $4.40 1,760 52% $4.90 1,586 47% $4.40 1,652 49% $3.50 425 1,879 55% $4.90 441 1,767 52% $4.90 389 1,799 53% $4.75 393 1,696 50% 0800 -0900 $4.40 264 324 1,708 50% $4.40 343 1,759 52% $4.40 313 1,664 49% $4.20 285 1,520 45% 0900 -1000 $3.50 271 287 1.617 48% $3.50 317 1,974 58% $3.50 269 1,437 42% $3.50 266 1,217 36% Monday 07122113 Tuesday 07/23113 Wednesday 07124113 Thursday AM lime Plfc& ~;HQV@i1:' ·· Price ·nov vpt: .• Cap. 1gfi4l!ll~. ifol.. •• lloV 0400 -0500 $2.60 284 763 22% $2.60 309 718 21% $2.60 309 732 22% $2.60 324 0500-0600 $4.20 532 1,781 52% $4.20 552 1,771 52% $4.20 540 1,588 47% $4.20 569 0600-0700 $4.40 458 1,989 59% $4.40 487 2,072 61% $4.40 482 2,049 60% $4.40 489 0700-0800 $4.90 374 1,715 50% $4.90 399 1,824 54% $4.90 405 1,821 54% $4.90 403 0800-0900 $4.40 276 1,541 45% $4.40 301 1,494 44% $4.40 290 1.696 50% $4.40 314 0900-1000 $3.50 281 1,600 47% $3.50 301 1,585 47% $3.50 342 1,786 53% $3.50 308 AMlime 0400-0500 $2.60 0500 -0600 $4.20 0600 -0700 $4.40 0700 • 0800 $4.90 275 736 22% $2.60 561 1,848 54% $4.20 474 1,975 58% $4.40 363 1,745 51% $4.90 Wednesday 07131113 303 752 22% $2.60 318 789 579 1,832 54% $4.20 620 1,814 501 2,061 61% $4.40 464 2,061 395 1,776 52% $4.90 398 1,875 0800 -0900 $4.40 265 1,587 47% $4.40 337 1,705 50% $4.40 1,537 45% $3.50 266 1,514 0900-1000 $3.50 228 1,376 40% $3.50 286 268 1,291 07/25113 VQi; Friday 07/26113 l.i•.~· HOV.··· 774 23% $2.60 263 1,776 52% $4.05 509 1,968 58% $4.20 438 1,797 53% $4.75 351 1,664 49% $4.20 258 1,547 46% $3.50 349 684 20% 1,567 46% 1,866 55% 1,523 45% 1,195 35% 1,431 42% 5 • • • • • • Transponder Distribution Status t July-13 ~ ~ TRANSPONDER DISTRIBUTION -~~~ --·-~ Tags ! "lo or 1 ota1 Total "' "' "' )' 4"' """ Issued ... 1 To New Accounts ' 874 26.1% 691 26.3% 914 26.0% ""v .,. •· Additional Tags to Existing Accounts l 686 20.5% 21.9% 712 20.3% ' ., Replac;errent. Transponders ' 1,88~. 53.7% I ... .. ··> .. Total Issued 3,509 Returned Account aosures I 580 . 23.eofo r 572 28.2% 619 23.6% '' ,•cv'' Accounts .. Dow nsizing . ' 216 10.6% 272 10.4% ,~. , 252 ~~:i~ I h'c Defective Transponders i 1!5~2 . 1,242 Total Returned: 2,424 ·• .• h" ·•X .,91'' 2,030 At the end of July 2013, the 91 Express Lanes had 113,108 active customer accounts, with 168,921 transponders assigned to those accounts. 125,000 120,000 115,000 110,000 Operational Highlights On-road Operations Number of Accounts by Fiscal Year As of July 31, 2013 119,992 Fiscal Year Customer Assistance Specialists (GAS) responded to 135 calls during July. The GAS team received 73 calls to assist disabled vehicles, 18 calls to remove debris and conducted 35 assists or traffic breaks. The GAS provided assistance to 7 accidents in the Express Lanes and 2 accidents in the general-purpose lanes . 6 Financial Highlights 91 Express Lanes Operating Statement Operating expenses: Contracted services Administrative fee Other professional services Credit card processing fees Toll road account servicing Other insurance expense Toll road maintenance supply repairs Patrol services Building equipment repairs and maint Other services Utilities Office expense Bad debt expense Miscellaneous (Z) Leases Total operating expenses De reciation and amortization (3J loss Nonoperating revenues (expenses): Interest income Investment gain on derivative instrument Interest expense Other Transfers in Transfers out Net income loss 769,619.16 163,855.67 54,425.35 67,827.65 26,867.75 5,616.70 33,382.96 820.00 230.02 18,481.54 28,710.71 1, 169,837.51 319,120.20 1,909,436.35 (1,229.18) (433,372.67) 434,601.85 $ 1,474,834.50 658,070.00 (111,549.16) 180,546.00 16,690.33 435,552.00 435,552.00 87,465.00 33,039.65 39,568.00 (28,259.65) 20,825.00 (6,042.75) 19, 159.00 13,542.30 35,402.00 2,019.04 9,240.00 9,240.00 833.00 13.00 1,666.00 1,666.00 2,874.00 2,643.98 15,675.00 (2,806.54) 34,570.00 5,859.29 1,541,445.00 371,607.49 319,120.20 1,737,267.00 172, 169.35 43,640.00 (44,869.18) (718,484.00) 285,111.33 674,844.00 240,242.15 $ 1,062,423.00 $ 412,411.50 'Actual amounts are accounted for on the accrual basis of accounting in an enterprise fund. Budget amounts are accounted for on a modified accrual basis of accounting. 'Miscellaneous expenses include: Bond Insurance Costs, Bank Se!"'-ice Charge, Transponder Materials. 'Depreciation and amortization are not budgeted ltems. • (17.0) 9.2 100.0 37.8 (71.4) (29.0) 70.7 5.7 100.0 1.6 100.0 92.0 NIA • (17.9) 16.9 24.1 9.9 (102.8) NIA 39.7 NIA 35.6 NIA NIA 38.8 • 7 • • • ATTACHMENT B m OCTA Orange County Transportation Authority Status Report August2013 As of August 31, 2013 • • • Operations Overview Traffic and Revenue Statistics Total traffic volume on the 91 Express Lanes for August 2013 was 1, 109,440. This represents a daily average of 35, 788. This is a 1.4 % increase in total traffic volume from the same period last year when traffic levels totaled 1,094,254. Potential toll revenue for the month was $3,248,393 which represents an increase of 1.8% from the prior year's total of $3, 190, 728. Carpool percentage for the month was 24.45% as compared to the previous year's rate of 24.01 %. Month-to-date traffic and revenue data are summarized in the table below. The following trip and revenue statistics tables represent all trips taken on the 91 Express Lanes and associated potential revenue for the month of August 2013. Current Month-to-Date (MTD) as of August 31, 2013 (Fiscal Year (FY) 2013-14 data is for the corresponding month in that fiscal year) Average Full Toll Lanes $3.79 $3.75 $0.04 Avera e 3+ Lanes $0.28 $0.28 $0.00 Average Revenue Per Trip $2.93 $2.89 $0.04 1.1% $3.74 1.3% 0.0% $0.29 (3.4%) 1.4% $2.92 0.3% 2 The 2014 fiscal year-to-date (YTD) traffic volume is 2.1% higher than the same period last year . The 2014 fiscal year-to-date revenue is 2.8% higher than for the same period last year. Year-io- date average revenue per-trip is $2.86. Fiscal year-to-date traffic and revenue data are summarized in the table below. The following trip and revenue statistics tables represent all trips taken on the 91 Express Lanes and associated potential revenue for the months of July 2013 through August 2013. FY 2013-14 to Date as of August 31, 2013 (FY2013-14 data is for the period July 1, 2013 through June 30, 2014; FY 2012-13 data is for the corresponding period in that fiscal year.) Average Full Toll Lanes $3.74 $3.74 $0.00 0.0% $3.70 1.1% Average 3+ Lanes $0.27 $0.27 $0.00 0.0% $0.28 (3.6%) Avera e Revenue Per Trip $2.86 $2.86 $0.00 0.0% $2.84 0.7% ·3 • • • • • • Traffic and Revenue Summary The chart below reflects the total trips breakdown between Full Toll trips and HOV3+ trips for FY 2013-14 on a monthly basis. FY 2013-14 Traffic Volume Overview 1,400,000 1,225,000 1,050,000 .. 875,000 E :I ~ 700,000 525,000 350,000 175,000 Jul-13 Aug-13 Sep-13 Oct-13 Nov-13 Dec-13 Jan-14 Feb-14 Mar-14 Apr-14 May-14 Jun-14 Month The chart below reflects the gross potential revenue breakdown between Full Toll trips and HOV3+ trips for FY 2013-14 on a monthly basis. $3,300,000 $3,200,000 $3,100,000 $3,000,000 G> :I $2,900,000 c ~ G. $2,800,000 $2,700,000 $2,600,000 $2,500,000 Jul-13 Aug-13 Sep-13 Oct-13 Nov-13 Dec-13 Jan-14 Feb-14 Mar-14 Apr-14 May-14 Jun-14 Month •Full Toll Lanes 83+ Lanes 4 Peak traffic hours in the eastbound direction reached or exceeded 90% or more of defined capacity eleven times during the month of August 2013. As demonstrated on the next chart, westbound peak hour traffic volumes top out at 64% of defined capacity. EASTBOUND PEAK-HOUR VOLUMES PM Time 1400 • 1500 1500. 1600 1600 -1700 1700 · 1800 1800 -1900 1900. 2000 1400. 1500 $4.40 1500. 1600 $4.75 1600. 1700 $4.55 1700. 1800 $4.85 1800. 1900 $4.75 1900. 2000 $3.35 300 1,612 47% $4.40 297 1,624 48% $4.40 286 535 2,556 75% $3.70 544 2,756 81% $3.95 530 518 2,991 88% ~~llJO;f~ w.4: $100 511 515 2,976 88% $5.25 485 2,985 88% ( • .... :$&_···· .... ~ 4!J! 485 2,525 74% $3.60 483 2,390 70% $3. 60 495 316 1,565 46% $3.35 397 1,943 57% $3.35 376 Friday 08102/13 ;4'!£t >18/ r $3.10 475 2, 630 77% 562 84% $9.55 618 2,798 82% 566 2,831 83% $9.35 544 2, 948 87% •·"lii~f9~. $s.oo 474 2.m 82% 471 2,4n 73% $5.65 523 2,707 80% 443 1,943 57% $5.30 428 1,686 50% 1,627 48% $4.55 333 2,050 60% $3.10 472 2,725 80% 2,882 85% $4.45 573 3,008 88% $9.55 590 2,902 85% 2,950 87% s9:2o;,iFii7o.~ ~ 911% $9.35 491 2,680 79% . 3;064 ~-~ $8.55 513 2,996 88% ~]!i1 ·t~oiio •"" 2, 730 80% $4.40 552 3,028 89% $5.65 540 2, 779 82% 1,909 56% $4.85 413 1,989 59% $5.30 440 1,782 52% Monday 08/12/13 Tuesday 08/13/13 Wednesday 08/14/13 Friday 08/16113 1400·1500 $4.40 297 1,671 49% $4.40 287 1,782 52% $4.40 302 1,767 52% $4.55 318 1,990 59% $3.10 431 2, 783 82% 1500 -1600 $4.75 1600. 1700 $4.55 1700 • 1800 $4.85 1800 · 1900 $4.75 1900. 2000 $3.35 PM Time 1400. 1500 $4.40 1500 · 1600 $4.75 1600-1700 $4.55 1700. 1800 $4.85 1800·1900 $4.75 1900. 2000 $3.35 PM Time 1400. 1500 $4.40 1500. 1600 $4.75 1600. 1700 $4.55 1700 • 1800 $4.85 1800-1900 $4.75 1900 . 2000 $3.35 542 2,674 79% $3.70 547 2,822 83% $3.95 519 2,874 85% $4.45 509 2,831 83% $9.55 592 2,942 87% 2,881 85% $9.35 3,21& $6.00 451 2,767 81% 446 2,881 85% s32 3,02s 89% !$S:&f : Siif1: ~a~"lb% mo ·£51.s ,": 3,oae. '.'910i $9.20 485 431 2,921 86% $5.25 484 3,002 88% $6.50 477 2,927 86% ·jps.15114 .. 505 2,644 78% $3.GO ;'.~~;1·~('t63 ta% $3.60 457 2,624 77% $4.40 498 2,717 $5.65 466 2,312 68% 319 1,434 42% $3.35 321 1,513 45% $3.35 336 1,531 45% $4.85 349 1,643 $5.30 364 1,568 46% 306 49% $4.40 284 1,641 48% $4.40 502 2,593 76% $3. 70 527 2, 752 81% $3.95 483 2,948 87% $uo -3io$t -$7.00 402 2,634 77% $5.25 468 2,922 86% $6.50 433 2, 108 62% $3. 60 463 2,425 71% $3.60 301 1,290 38% $3.35 302 1,375 40% $3.35 308 563 517 483 499 337 1,807 53% $4.55 2,961 87% $4.45 2,977 88% $9.20 2,912 86% i.ss 2,590 76% $4.40 1,552 46% $4.85 08127113 Wednesday 08/28113 :i:·V'ol. Cap.· !Mee:> HOV 255 1,592 47% 1,641 48% $4.40 253 1,707 50% $4.55 504 2,454 72% 524 2,807 83% $3.95 521 2,948 87% $4.45 475 2,818 83% $5.80 507 2,964 87% $7.00 529 2,934 86% $9.20 425 2, 722 80% $5.25 467 2,988 88% $6.50 494 2,766 81% $8.55 393 2,032 60% $3.60 456 2,475 73% $3.60 477 2,978 88% $4.40 217 1,030 30% $3.35 275 1,371 40% $3.35 337 1,616 48% $4.85 292 2,026 60% $3.10 516 2,956 87% $9.55 502 2,831 83% $9.35 g ~?t,111. ;~~i $6.00 512 2,930 86% $5.65 357 1,593 47% $5.30 421 603 520 464 412 374 2.,789 82% 2,908 86% 2,841 84% 2,949 87% 2,210 65% 1,519 45% 08129113 Friday 08/30/13 . '?ili'vdt'· :•'.' 311 2, 101 62% $3.10 418 2,757 81% 546 3,019 89% $9.55 512 2,261 67% 517 3,019 89% $9.35 555 2,888 85% 501 3,021 89% .$6.00 425 2,555 75% 472 2,603 77% $5.65 429 1,988 58% 347 1,618 48% $5.30 351 1,373 40% 5 • • • • • • WESTBOUND PEAK-HOUR VOLUMES AM Time 0400-0500 0500-0600 0600-0700 0700-0800 0800-0900 0900-1000 Friday 08102113 ~ 1qv · ~j, scat>. $2.60 273 673 20% $4.05 488 1, 647 48% $4.20 409 1,682 49% $4.75 371 1,601 47% $4.20 251 1,180 35% $3.50 236 1,055 31% 0400-0500 $2.60 287 753 22% $2.60 306 741 22% $2.60 305 763 22% $2.60 317 745 22% $2.60 259 676 20% 0500-0600 $4.20 554 1,765 52% $4.20 533 1,824 54% $4.20 536 1,790 53% $4.20 586 1,925 57% $4.05 507 1,652 49% 0600-0700 $4.40 465 1,955 58% $4.40 513 2,192 64% $4.40 466 1,937 57% $4.40 471 2,067 61% $4.20 410 1,758 52% 0700-0800 $4.90 334 1,664 49% $4.90 385 1,926 57% $4.90 373 1,749 51% $4.90 393 1,729 51% $4.75 367 1,658 49% 0800-0900 $4.40 249 1,496 44% $4.40 312 1,766 52% $4.40 257 1,670 49% $4.40 265 1,656 49% $4.20 251 1,461 43% 0900-1000 $3.50 252 1,277 38% $3.50 276 1,736 51% $3.50 276 1,574 46% $3.50 266 1,679 49% $3.50 260 1,235 36% Monday 08112/13 Tuesday 08/13/13 Wednesday 08/14/13 Thursday 08115113 Friday 08/16/13 AM Time ~'l'MQi VO,l cdG~ l'.'lfj;e . ,;Jiov ::a:r!ik4CaJi. P,Oce ·. Aov VO!.>. ¢Sf}, Pritt.: ·-·..:\;:v ... rirn.: •r.an..: ,, ~~, ·PJiee HOV 'Wf;.". :·cap. 0400-0500 $2.60 292 769 23% $2.60 312 794 23% $2.60 301 718 21% $2.60 283 654 19% $2.60 262 688 20% 0500-0600 $4.20 558 1,804 53% $4.20 572 1,715 50% $4.20 539 1,639 48% $4.20 575 1,742 51% $4.05 532 1,701 50% 0600-0700 $4.40 453 1,904 56% $4.40 499 2,100 62% $4.40 469 2,014 59% $4.40 469 1,979 58% $4.20 422 1,793 53% 0700-0800 $4.90 336 1,755 52% $4.90 376 1,791 53% $4.90 368 1,784 52% $4.90 350 1,778 52% $4.75 303 1,566 46% 0800. 0900 $4.40 243 1,518 45% $4.40 276 1,743 51% $4.40 259 1,652 49% $4.40 266 1,759 52% $4.20 220 1,227 36% 0900-1000 $3.50 230 1,409 41% $3.50 206 1,321 39% $3.50 207 1,451 43% $3.50 208 1,384 41% $3.50 190 1,115 33% Monday 08119/13 ~sday 08120/13 Wednesday 08121/13 Thursday 08122113 Friday 08123/13 AM Time firicii •:• vtii. c~.t w :wov lfiti!!::<;ap. Price lill\h. Vol. Cap. Prl'ee w·vd!wf·.~ Price HOV Vol, Cajl; 0400-0500 $2.60 300 823 24% $2.60 322 779 23% $2.60 292 743 22% $2.60 286 725 21% $2.60 266 698 21% 0500-0600 $4.20 554 1,856 55% $4.20 575 1,836 54% $4.20 559 1,789 53% $4.20 591 1,866 55% $4.05 549 1,739 51% 0600-0700 $4.40 435 1,951 57% $4.40 479 2,055 60% $4.40 487 2,009 59% $4.40 461 1,785 53% $4.20 452 1,866 55% 0700-0800 $4.90 335 1,740 51% $4.90 364 1,794 53% $4.90 353 1,785 53% $4.90 411 1,878 55% $4.75 353 1,695 50% 0800-0900 $4.40 246 1,596 47% $4.40 252 1,597 47% $4.40 237 1,713 50% $4.40 261 1,755 52% $4.20 226 1,333 39% 0900-1000 $3.50 239 1,439 42% $3.50 243 1,441 42% $3.50 224 1,579 46% $3.50 225 1,786 53% $3.50 200 1,077 32% Monday 08126/13 Wednesday 08128/13 Thursday 08129113 AM Time ,il;t~ ',i .f@'. K®. 1~ oi,"it ~.,,"; -~1AJ:li '!; 0400-0500 $2.60 283 746 22% $2.60 310 777 23% $2.60 312 801 24% $260 22% $2.60 262 652 19% 0500. 0600 $4.20 559 1,860 55% $4.20 577 1,831 54% $4.20 578 1,840 54% $4.20 613 1,883 55% $4.20 518 1,642 48% 0600-0700 $4.40 459 1,928 57% $4.40 513 1,991 59% $4.40 503 2,051 60% $4.40 496 2,073 61% $4.40 460 1,776 52% 0700-0800 $4.90 367 1,814 53% $4.90 399 1,889 56% $4.90 396 1,926 57% $4.90 402 1,920 56% $4.75 353 1,633 48% 0800-0900 $4.40 214 1,643 48% $4.40 241 1,729 51% $4.40 264 1,829 54% $4.90 237 1,691 50% $4.55 190 1,239 36% 0900-1000 $3.50 189 1,452 43% $3.50 186 1,556 46% $3.50 227 1,923 57% $4.90 200 1,433 42% $3.95 180 1,081 32% 6 Transponder Distribution Status ~ugust-13 I July-13 j FY 2013-14 TRANSPONDER DISTRIBUTION --.-:---··r' --,--~-,------- s ! % of Total I Tags I "v' 'v.al l Average To-Date Issued . ... l To New Accounts 959 28.1% 917 27.1% " .. Ad_d~ional Tags to Existing Acc_ounts 573 630 18.6% .. Replacerrent Transponders I 1,876 . . , . . . . . Total Issued I 3,408 Returned Account aosures I 502 580 A_ccounts Downsizing ' 243 252 I ""· Defe~tive Transponders 1,520 .... 1.592 Total Returned 2,265 2,424 At the end of August 2013, the 91 Express Lanes had 113,4 76 active customer accounts, with 169,416 transponders assigned to those accounts. 125,000 120,000 115,000 110,000 105,000 100,000 95,000 Number of Accounts by Fiscal Year As of August 31, 2013 119,992 Fiscal Year 7 • • • • • • Operational Highlights On-road Operations Customer Assistance Specialists (CAS) responded to 106 calls during August. The CAS team received 65 calls to assist disabled vehicles, 8 calls to remove debris and conducted 25 assists or traffic breaks. The CAS provided assistance to 5 accidents in the Express Lanes and 3 accidents in the general-purpose lanes . 8 Financial Highlights 91 Express Lanes Operating Statement Operating expenses: Contracted services Administrative fee Other professional services Credit card processing fees Toll road account servicing Other insurance expense Toll road maintenance supply repairs Patrol services Building equipment repairs and maint Other services Utilities Office expense Bad debt expense Bond issuance cost Miscellaneous <2 l Leases Total operating expenses De reciation and amortization C3l Nonoperating revenues (expenses): Interest income Investment gain on derivative instrument Interest expense Other Total nono Transfers in Transfers out loss 1,384,783.32 361,271.84 41,797.17 124,352.00 108,143.97 53,735.50 36,059.80 66,765.92 52,872.49 1,640.00 3, 172.93 4,082.54 506,766.77 8,767.92 37,632.90 2, 791,845.07 665,379.87 3,657,457.69 68,153.30 (898,437.61) 830,284.31 1,316, 140.00 (68,643.32) 361,092.00 (179.84) 668,598.00 626,800.83 174,930.00 50,578.00 79, 136.00 (29,007.97) 41,650.00 (12,085.50) 38,318.00 2,258.20 70,804.00 4,038.08 62,436.00 9,563.51 1,666.00 26.00 3,332.00 159.07 5,748.00 1,665.46 23,714.00 (483,052.77) 7,684.00 (1,083.92) 69, 140.00 31,507.10 2,924,388.00 132,542.93 665,379.87 3,597,577.00 59,880.69 124,029.00 (55,875.70) ( 1,364, 776.00) 466,338.39 1,240,747.00 410,462.69 % 5.5 29.1 9.1 (5.2) (0.0) 93.7 28.9 (36.7) (29.0) 5.9 5.7 15.3 1.6 4.8 29.0 NIA (2,037.0) (14.1) 45.6 4.5 NIA 1.7 (45.1) NIA 34.2 NIA 33.1 NIA NIA Net income loss $ 2,827, 173.38 $ 2,356,830.00 $ 470,343.38 20.0 'Actual amounts are accounted for on the accrual basis of accounting in an enterprise fund. Budget amounts are accounted for on a modified accrual basis of accounting. 'Miscellaneous expenses include: Bond Insurance Costs. Bank Service Charge, Transponder Materials. 'Depreciation and amortization are not budgeted items. Capital Asset Activity During the two months ending August 31, 2013, capital asset activities included $66,438 for the purchase of transponders. 9 • • • • • • ATTACHMENT C m OCTA Orange County Transportation Authority s Status Report September 2013 As of September 30, 2013 • • • Operations Overview Traffic and Revenue Statistics Total traffic volume on the 91 Express Lanes for September 2013 was 987,860. This represents a daily average of 32,929. This is a 1.8% increase in total traffic volume from the same period last year when traffic levels totaled 970,254. Potential toll revenue for the month was $2,913,887 which represents an increase of 4.8% from the prior year's total of $2,780,906. Carpool percentage for the month was 23.49% as compared to the previous year's rate of 23.95%. Month-to-date traffic and revenue data are summarized in the table below. The following trip and revenue statistics tables represent all trips taken on the 91 Express Lanes and associated potential revenue for the month of September 2013. Current Month-to-Date (MTD) as of September 30, 2013 (Fiscal Year (FY) 2013-14 data is for the corresponding month in that fiscal year) Average 3+ Lanes Average Revenue Per Trip $2.95 $2.98 ($0.03) (1.0%) $0.26 7.7% $2.87 2.8% 2 The 2014 fiscal year-to-date (YTD) traffic volume is 2% higher than the same period last year . The 2014 fiscal year-to-date revenue is 3.4% higher than for the same period last year. Year-to- date average revenue per-trip is $2.89. Fiscal year-to-date traffic and revenue data are summarized in the table below. The following trip and revenue statistics tables represent all trips taken on the 91 Express Lanes and associated potential revenue for the months of July 2013 through September 2013. FY 2013-14 to Date as of September 30, 2013 (FY 2013-14 data is for the period July 1, 2013 through June 30, 2014; FY 2012-13 data is for the corresponding period in that fiscal year.) Average Full Toll Lanes $3.75 $3.75 $0.00 0.0% $3.70 1.4% Average 3+ Lanes $0.27 $0.28 ($0.01) (3.6%) $0.27 0.0% Average Revenue Per Trip $2.89 $2.90 ($0.01) (0.3%) $2.85 1.4% 3 • • • • • • Traffic and Revenue Summary The chart below reflects the total trips breakdown between Full Toll trips and HOV3+ trips for FY 2013-14 on a monthly basis. FY 2013-14 Traffic Volume Overview 1,400,000 1,225,000 1,050,000 GJ 875,000 E ::I ;g 700,000 525,000 350,000 175,000 Jul-13 Aug-13 Sep-13 Oct-13 Nov-13 Dec-13 Jan-14 Feb-14 Mar-14 Apr-14 May-14 Jun-14 Month I •Full Toll Lanes B3+ Lanes I The chart below reflects the gross potential revenue breakdown between Full Toll trips and HOV3+ trips for FY 2013-14 on a monthly basis. $3,300,000 FY 2013-14 Revenue Summary $3,200,000 $3,100,000 $3,000,000 .. = $2,900,000 c .. > ~ $2,800,000 $2,700,000 $2,600,000 $2,500,000 Jul-13 Aug-13 Sep-13 Oct-13 Nov-13 Dec-13 Jan-14 Feb-14 Mar-14 Apr-14 May-14 Jun-14 Month 4 Peak traffic hours in the eastbound direction reached or exceeded 90% or more of defined capacity five times during the month of September 2013. As demonstrated on the next chart, westbound peak hour traffic volumes top out at 64% of defined capacity. EASTBOUND PEAK-HOUR VOLUMES EASTBOUND WEEKDAY PEAK VOLUME: Monday 09/02/13 Tuesday 09/03/13 1400 -1500 $3.85 250 637 19% $4.40 240 1,569 46% $4.40 267 1500 -1600 $3.85 1600 -1700 $3.85 1700 -1800 $3.85 1800 -1900 $3.85 1900 -2000 $3. 85 PM Time 1400 -1500 $4.40 1500 -1600 $4.75 1600 -1700 $4.55 287 331 320 345 400 248 486 676 724 709 748 775 1,484 2,515 475 2,821 20% $3.70 21% $5.80 21% $5.25 22% $3.60 23% $3.35 44% $4.40 74% 83% $3.70 $5.80 487 2,633 77% $3.95 480 2,857 84% $7.00 403 2, 735 80% $6.50 427 2,360 69% $3.60 288 1,303 38% $3.35 246 1,605 516 2,597 502 3,023 47% $4.40 76% $3.95 89% $7.00 1700 -1800 $4.85 409 2,657 78% $5.25 464 2,916 86% $6.50 1800 -1900 $4.75 461 2,054 60% $3.60 464 2,462 72% $3.60 1900 -2000 $3.35 236 1,025 30% $3.35 312 1,352 40% $3.35 Monday 09/16/13 Tuesday PM Time ;,¥ot;:-;tap, . Price ;!~oitjlf 1400-1500 $4.40 248 1,523 45% $4.40 265 1,679 1500-1600 $4.75 480 2,454 72% $3.70 1600-1700 $4.55 442 2,805 83% $5.80 1700 -1800 $4.85 438 2,682 79% $5.25 1800-1900 $4.75 407 1,905 56% $3.60 1900 -2000 $3.35 298 1,327 39% $3.35 Monday 09/23/13 PM Time , ,,\>ffOf!~:'.:tOkiiM; ,,;,~*' ~,, 1400 -1500 $4.40 228 1,536 1500 -1600 $4.75 1600-1700 $4.55 1700 -1800 $4.85 1800-1900 $4.75 1900 -2000 $3.35 PMTime ~ 488 2,551 453 2,905 437 2,722 440 2, 117 253 1, 102 1400 -1500 $4.40 238 1500 -1600 $4. 75 507 1600 -1700 $4.55 434 1700 -1800 $4.85 447 1800-1900 $4.75 417 1900 -2000 $3. 35 252 45% $4.40 75% $3.70 85% $5.80 80% $5.25 62% $3.60 32% $3.35 514 2,560 75% $3.95 475 2,892 85% $1jlo 463 2, 997 88% 486 2,516 74% $3.60 335 1,431 42% $3.35 224 533 479 483 442 266 1,661 49% 2,698 79% $3.95 2,866 84% $7.00 2,918 86% $6.50 2,320 68% $3.60 1,319 39% $3.35 480 507 421 416 336 253 502 575 497 449 350 264 568 552 496 493 321 51% $4.55 283 1,863 55% $3.10 405 2,723 80% 2,742 81% $4.45 2,905 85% $9.20 2,845 84% $8.55 2,503 74% $4.40 1,498 44% $4.85 505 2,893 85% $9.55 518 2,897 85% $9.35 447 2,849 84% $6.00 462 2,500 74% $5.65 310 1.557 46% $5.30 622 2, 822 83% ~ir .i.bl . 90% 446 2,951 87% 399 2, 159 64% 369 1,404 41% 1,603 47% $4.55 286 1,870 55% $3.10 380 2, 714 80% 2,624 77% $4.45 517 2,938 86% $9.55 622 2,896 85% 2,982 88% $9.20 2,968 87% $8.55 2,506 74% $4.40 1,523 45% $4.85 507 2,980 88% $9.35 473 2,950 87% $6.00 470 2,627 77% $5.65 340 1,621 48% $5.30 490 2, 792 82% 511 3,032 89% 441 2,363 70% 381 1,423 42% Thursday 09/19/13 Friday 09/20113 ./:::;U . VOi. ~; 'Prii .. , W: - 1,743 51% $4.55 2,920 86% $4.45 3, 039 89% $9.20 2,997 88% $8.55 2,947 87% $4.40 1,627 48% $4.85 243 1,825 54% $3.10 385 2,804 82% 531 2,985 88% !Je.55 . 666 . 531 2,947 87% iij~5;:iftJ529 478 2,962 87% $8.00 474 2,899 85% 519 2,795 82% $5.65 341 1,n? 51% $5.30 250 1,794 536 2,879 523 2,986 496 3,009 489 2,659 345 1,551 53% $3.10 85% $9.55 88% $9.35 89% $6.00 78% $5.65 46% $5.30 482 2,322 68% 426 1,641 48% 415 2,876 85% 599 2,943 87% 517 3,019 89% 481 2,859 84% 415 2,297 68% 382 1,597 47% 5 • • • • • • WESTBOUND PEAK-HOUR VOLUMES Monday 09/02113 Tuesday AMTime .ii tfe>V£Jtti•1~'Cap. •Pri'q4~· 0400. 0500 $1.40 23 58 2% $2.60 0500. 0600 $1.40 44 111 3% $4.20 0600. 0700 $2.20 39 111 3% $4.40 0700. 0800 $2.20 82 187 6% $4.90 0800. 0900 $2.20 154 325 10% $4.40 0900. 1000 $3.25 257 601 18% $3.50 Monday 09/09/13 0400 . 0500 $2. 60 282 778 $2. 60 0500 . 0600 $4.20 549 1,829 54% $4.20 0600 -0700 $4.40 506 2,052 60% $4.40 0700. 0800 $4.90 408 2,092 62% $4.90 0800 -0900 $4.40 241 1, 796 53% $4.40 0900-1000 $3.50 152 1,363 40% $3.50 289 566 508 395 246 183 306 533 476 459 239 165 09/03/13 yaWF >.-ei!li;: 781 23% 1,854 55% 2,013 59% 1,945 57% 1,745 51% 1,697 50% 769 23% 1,581 47% 1,991 59% 2,205 65% 1,761 52% 1,667 49% Wednesday b.:\:\:,i.!itfnv' $2.60 $4.20 $4.40 $4.90 $4.40 $3.50 $2.60 $4.20 $4.40 $4.90 $4.40 $3.50 282 586 517 433 207 149 322 603 504 442 227 171 09/04113 Thursday 09/05/13 Friday . Vl:>I. ~,; . J>rjct' :m:w 'Vii. ¢~p: \Prl~;)ifi= 740 22% $2.60 296 771 23% $2.60 1,823 54% $4.20 562 1,643 54% $4.05 2,042 60% $4.40 545 2,101 62% $4.20 2,066 61% $4.90 437 2,003 59% $4.75 1,904 56% $4.40 204 1,720 51% $4.20 1, 165 34% $3.50 170 1,561 46% $3.50 09/11/13 Thursday 09/12113 Vol.. ' eaP: Price ''iti''':rvbir ' · 805 24% $2.60 302 773 23% $2.60 1,788 53% $4.20 610 1,888 56% $4.05 2,051 60% $4.40 556 2,156 63% $4.20 2,115 62% $4.90 428 1,996 59% $4.75 1,719 51% $4.40 265 1,799 53% $4.20 1,387 41% $3.50 155 1,478 43% $3.50 283 544 500 434 222 146 269 535 497 384 221 109 09/17/13 Wednesday 09/18/13 Monday AM Time . Pthi~ P · · Vc!I; Gap, :Pfhil\ .J:P ;ilbt: / ~. Pth;e' 0400 -0500 $2. 60 236 0500 -0600 $4 .20 469 0600 -0700 $4.40 529 0700. 0800 $4.90 445 0800 -0900 $4.40 214 0900. 1000 $3.50 191 Monday 625 1,371 2,066 1,921 1,606 1,771 09/23/13 18% $2.60 40% $4.20 61% $4.40 57% $4.90 47% $4.40 52% $3.50 297 566 521 468 226 157 Tuesday 766 23% $2.60 316 761 22% $2.60 1,786 53% $4.20 585 1,820 54% $4.20 2,072 61% $4.40 550 2,044 60% $4.40 2,094 62% $4.90 473 2,150 63% $4.90 1, 721 51% $4.40 241 1,713 50% $4.40 1, 529 45% $3. 50 169 1,435 42% $3.50 303 597 523 455 220 196 09/24113 Wednesday 09/25/13 Thursday 759 1,869 2,093 2,085 1,737 1,657 09/26/13 AMTime miee#,P' Vo.I .• .• tt..r?, Pfice , 1-\(1~ ~•WQI. '. Cap. .ii.dee{ !lOV WlLT'fii~C jp~~; HOV!; V •. '~ ,, 0400-0500 $2.60 298 775 23% $2.60 315 793 23% $2.60 319 788 23% $2.60 293 752 0500-0600 $4.20 551 1,807 53% $4.20 559 1,785 53% $4.20 604 1,792 53% $4.20 574 1,750 0600 -0700 $4.40 556 2,177 64% $4.40 554 2,080 61% $4.40 558 2,099 62% $4.40 550 2,075 0700 -0800 $4.90 425 1,948 57% $4.90 426 1,993 59% $4.90 413 2,060 61% $4.90 435 2,042 0800-0900 $4.40 212 1,694 50% $4.40 208 1,637 48% $4.40 226 1,795 53% $4.40 191 1,630 0900. 1000 $3.50 142 1,302 38% $3.50 169 1,434 42% $3.50 159 1,461 43% $3.50 . 181 1,316 Monday 09/30/13 AM nme Pfhil ,l(~V y(B';' 0400. 0500 $2.60 281 775 0500 . 0600 $4.20 567 1,832 0600 -0700 $4.40 504 1,998 0700-0800 $4.90 443 1,917 0800 -0900 $4.40 196 1,627 0900. 1000 $3.50 143 1,256 22% 55% 62% 61% 51% 49% 22% 51% 61% 60% 48% 39% $2.60 $4.05 $4.20 $4.75 $4.20 $3.50 256 561 527 404 213 174 Friday •'•' $2.60 267 $4.05 516 $4.20 493 $4.75 403 $4.20 213 $3.50 174 09/06/13 " X:;J-~~~ . .l:l'; '-~ 763 22% 1,730 51% 1,956 58% 1,916 56% 1,520 45% 1,281 38% 09/13/13 712 21% 1,710 50% 1,890 56% 1,728 51% 1,489 44% 1,068 31% 689 1,736 1,934 1,822 1,401 1,087 20% 51% 57% 54% 41% 32% 09/27/13 ,,_ /•ili>i:l!!ld' 722 21% 1,614 47% 1,843 54% 1,771 52% 1,394 41% 1,089 32% 6 Transponder Distribution Status TRANSPONDER DISTRIBUTION ~~~pt~~ber-13 I --~ugust-13 ~· L--~~ ~ J Tags J % of TotaJITags I% of Tot~1J A~er~ge To-Date Issued To New Accounts '"'N" '"h Additional Tags to ExistinQ Ac.cou.nts 633 555 . Replacement Transponders Returned Account aosures Accounts. Downsizing . Defective Transponders . . . ' . . .. Total Issued .. 1,439 . Total Returned 2,110 23.0% 20.2% 833 610 26.0% At the end of September 2013, the 91 Express Lanes had 113,373 active customer accounts, with 169,449 transponders assigned to those accounts. 125,000 120,000 115,000 110,000 105,000 100,000 95,000 ~~ rY~ ~~ ,..,~ ,..,~ ~ Number of Accounts by Fiscal Year As of September 30, 2013 119,992 <:) rS-~~ #~ ~ ..... r§'<o !¥".; r:-,,~ ,.._§> ~ i> '"C '"C Fiscal Year ,, '.'.> I). ......... ~..,, ~~ ~ ..... ~ ..... ~""' '"C '"C '"C 7 • • • • • • Operational Highlights On-road Operations Customer Assistance Specialists (CAS) responded to 77 calls during September. The CAS team received 51 calls to assist disabled vehicles, 2 calls to remove debris and conducted 15 assists or traffic breaks. The CAS provided assistance to 5 accidents in the Express Lanes and 4 accidents in the general-purpose lanes . 8 Financial Highlights 91 Express Lanes Operating Statement Operating expenses: Contracted services Administrative fee Other professional services Credit card processing fees Toll road account servicing Other insurance expense Toll road maintenance supply repairs Patrol services Building equipment repairs and maint Other services Utilities Office expense Bad debt expense Bond Issuance Cost Miscellaneous <2> Leases Total operating expenses De reciation and amortization <3 > Nonoperating revenues (expenses): Interest income Investment gain on derivative instrument Interest expense Other Total nono Transfers in Transfers out loss YTD as of September 30, 2013 Actual <1> Budget <1> 2,008,405.92 1,974,210.00 (34, 195.92) 541,907.76 541,638.00 (269.76) 559,318.98 799,200.00 239,881.02 192,559.97 262,395.00 69,835.03 165,876.84 118,704.00 (47, 172.84) 80,603.25 62,475.00 (18, 128.25) 48,214.86 63,727.00 15,512.14 100,148.88 106,206.00 6,057.12 83,393.10 181,302.00 97,908.90 1,640.00 27,499.00 25,859.00 4,878.19 4,998.00 119.81 7,346.00 8,747.00 1,401.00 506,766.77 35,571.00 (471, 195.77) 12,444.94 16,941.00 4,496.06 57,258.90 103,710.00 46,451.10 4,370,764.36 4,307,323.00 (63,441.36) 982,945.93 982,945.93 5,087,399.02 5,467,414.00 380,014.98 113,852.66 203,992.00 (90, 139.34) (1,446,341.35) ( 1,951,616.00) 505,274.65 1,332,488.69 1, 747,624.00 415,135.31 3,754,910.33 $ 3,719,790.00 $ 35,120.33 'Actual amounts are accounted for on the accrual basis of accounting in an enterprise fund. Budget amounts are accounted for on a modified accrual basis of accounting. 2 Miscellaneous expenses include: Bond Insurance Costs, Bank SeNice Charge, Transponder Materials. •Depreciation and amortization are not budgeted items. Capital Asset Activity 3.5 24.8 (1.7) (0.0) 30.0 26.6 (39.7) (29.0) 24.3 5.7 54.0 94.0 2.4 16.0 NIA (1,324.7) 26.5 44 . .§ (1.5) NIA 7.0 (44.2) NIA 25.9 NIA 23.8 NIA NIA 0.9 During the three months ending September 30, 2013, capital asset activities included $127,701 for the purchase of transponders. 9 • • • • • • ATTACHMENT D m OCTA Orange County Transportation Authority Status Report October 2013 As of October 31, 2013 • • • Operations Overview Traffic and Revenue Statistics Total traffic volume on the 91 Express Lanes for October 2013 was 1,061,806. This represents a daily average of 34,252. This is a 4.4% increase in total traffic volume from the same period last year when traffic levels totaled 1,016,910. Potential toll revenue for the month was $3,183,978 which represents an increase of 5.8% from the prior year's total of $3,008, 100. Carpool percentage for the month was 23.29% as compared to the previous year's rate of 22.17%. Month-to-date traffic and revenue data are summarized in the table below. The following trip and revenue statistics tables represent all trips taken on the 91 Express Lanes and associated potential revenue for the month of October 2013. Current Month-to-Date (MTD) as of October 31, 2013 (Fiscal Year (FY) 2013-14 data is for the corresponding month in that fiscal year) Average Full Toll Lanes $3.82 $3.79 $0.03 Average 3+ Lanes $0.30 $0.30 $0.00 Average Gross Revenue $3.00 $3.00 $0.00 0.8% $3.71 3.0% 0.0% $0.30 0.0% 0.0% $2.96 1.4% 2 The 2014 fiscal year-to-date (YTD) traffic volume is 2.6% higher than the same period last year . The 2014 fiscal year-to-date revenue is 4% higher than for the same period last year. Year-to- date average revenue per-trip is $2.92. Fiscal year-to-date traffic and revenue data are summarized in the table below. The following trip and revenue statistics tables represent all trips taken on the 91 Express Lanes and associated potential revenue for the months of July 2013 through October 2013. FY 2013-14 to Date as of October 31, 2013 (FY 2013-14 data is for the period July 1, 2013 through June 30, 2014; FY 2012-13 data is for the corresponding period in that fiscal year.) Average Full Toll Lanes $3.77 $3.76 $0.01 0.3% $3.70 1.9% Average 3+ Lanes $0.28 $0.28 $0.00 0.0% $0.28 0.0% Average Gross Revenue $2.92 $2.92 $0.00 0.0% $2.88 1.4% 3 • • • • • • Traffic and Revenue Summary The chart below reflects the total trips breakdown between Full Toll trips and HOV3+ trips for FY 2013-14 on a monthly basis. FY 2013-14 Traffic Volume Overview 1,400,000 1,225,000 1,050,000 Ql 875,000 E :I 0 > 700,000 525,000 350,000 175,000 Jul-13 Aug-13 Sep-13 Oct-13 Nov-13 Dec-13 Jan-14 Feb-14 Mar-14 Apr-14 May-14 Jun-14 Month j &Full Toll Lanes 113+ Lanes j The chart below reflects the gross potential revenue breakdown between Full Toll trips and HOV3+ trips for FY 2013-14 on a monthly basis. $3,300,000 FY 2013-14 Revenue Summary $3,200,000 $3,100,000 $3,000,000 ., " $2,900,000 c ., > & $2,800,000 $2,700,000 $2,600,000 $2,500,000 Jul-13 Aug-13 Sep-13 Oct-13 Nov-13 Dec-13 Jan-14 Feb-14 Mar-14 Apr-14 May-14 Jun-14 Month 4 Peak traffic hours in the eastbound direction reached or exceeded 90% or more of defined capacity nine times during the month of October 2013. As demonstrated on the next chart, westbound peak hour traffic volumes top out at 71 % of defined capacity. EASTBOUND PEAK-HOUR VOLUMES PMTime 1400 -1500 1500 -1600 1600·1700 1700 -1800 1800-1900 1900-2000 456 496 287 2,984 2,549 1,288 88% 75% 38% $3.95 489 2,509 74% $4.45 '$f:J!ll;4~1:;, ~Q49 §0%' $9.20 $6.50 497 3,031 89% $8.55 $3.60 467 2,613 77% $4.40 $3.35 317 1,561 46% $4.85 287 542 522 449 517 333 10/03113 1,803 2,954 3,037 2,801 2,666 1,554 Friday 10104/13 .•. '%' ~'trlc&''Jiitk)v. fOt.ii. 53% $3.10 402 2,805 87% $9.$$ ~3 ••• 89% $9.35 522 3,017 82% $6.00 474 2,922 78% $5.65 482 2,305 46% $5.30 425 1,693 89% 86% 68% 50% 10107/13 10108113 Wednesday 10/09113 Thursday 10/10/13 10111/13 1--P~M~n~,m~e~;;.;;;;.;i ....... llJl~'.:]~~!i!:Jill· :~.troi.~L=·=c~ap;~~tJ~~~J1~·21J·~~·l··f.f'rklt~·=·i•.~••ovi.:· ].•!IOl1··~·I·i·c~·!·~-tJ~~!ll: c.,. 1400-1500 $4.40 206 1,491 44% $4.40 217 1,600 47% $4.40 237 1,814 53% $4.55 240 1,878 55% $3.10 410 2,853 84% 1500 -1600 $4.75 511 2,486 73% $3.70 504 2,609 77% $3.95 455 2,684 79% $4.45 533 2,946 87% .. ~ ~t~filf:3,04f' 90% 1600 -1700 $4.55 457 2,909 86% $5.80 472 2,822 83% $7.00 470 2,751 81% $9.20 480 2,958 87% $9.35 510 2,917 86% 1700 · 1800 $4.85 428 2,788 82% $5.25 472 2,820 83% $6.50 404 2,657 78% $8.55 478 2,793 82% $6.00 480 3,018 89% 1800-1900 $4.75 476 2,270 67% $3.60 495 2,521 74% $3.60 446 2,622 77% $4.40 480 2,572 76% $5.65 479 2,434 72% 1900-2000 $3.35 258 1,098 32% $3.35 331 1,419 42% $3.35 405 2,501 74% $4.85 331 1,584 47% $5.30 385 1,565 46% PMTime 1400 -1500 $4.40 1500 -1600 $4.75 1600 -1700 $4.55 1700 -1800 $4.85 1800 -1900 $4.75 1900 -2000 $3.35 PM lime 1400. 1500 $4.40 1500 -1600 $4.75 1600 -1700 $4.55 1700 -1800 $4.85 1800. 1900 $4.75 1900. 2000 $3.35 PMTime 1400 -1500 $4.40 1500-1600 $4.75 1600-1700 $4.55 1700-1800 $4.85 1800-1900 $4.75 10/14/13 Tuesday 10/15113 Wednesday 10/16113 239 501 1,481 44% $4.40 239 1,648 48% $4.40 278 1,802 53% $4.55 255 546 502 434 472 346 1,841 3,020 3,011 2,988 2,459 1,636 54% $3.10 89% $9.55 89% $9.35 88% $6.00 72% $5.65 48% $5.30 2,471 73% $3.70 509 2.734 80% $3.95 500 2,722 80% $4.45 420 392 421 223 2,725 80% $5.80 2,569 76% $5.25 1,909 56% $3.60 957 28% $3.35 231 1,589 47% $4.40 503 2,537 75% $3. 70 451 2,824 83% $5.80 439 2,716 80% $5.25 478 2, 169 64% $3.60 271 1,110 33% $3.35 221 460 431 406 423 10/28/13 1,491 2,430 2,764 2,552 1,893 44% $4.40 71% $3.70 81% $5.80 75% $5.25 56% $3.60 513 3,032 89% $7.00 477 481 2.947 87% $6.50 462 508 2.569 76% $3.60 478 305 1,421 42% $3.35 341 2,986 88% $9.20 3,020 89% $8.55 2,555 75% $4.40 1,455 43% $4.85 10/22113 Wednesday 10123113 Thursday 10124/13 249 1,646 48% $4.40 236 487 2,590 76% $3.95 495 493 3,000 88% $7.00 497 491 2,926 86% $6.50 .462 491 2,408 71% $3.60 498 297 1,338 39% $3.35 351 1,678 49% $4.55 284 1,944 2,677 79% $4.45 536 3,027 89% 3,016 89% $9.20 509 3,024 89% 2,966 87% $8.55 333 2,060 61% $6.00 2,603 77% *"~' .. t29 : 3,151[; .~ : $5.65 1,634 48% $4.85 363 1,739 51% $5.30 469 489 437 484 2,616 77% 469 2,713 80% .J~.· 31155 2,942 87% $7.00 506 2,956 87% $9.20 2,875 85% ~so ; @f ~i~ 91% .• $8.55 2,545 75% $3.60 464 2,641 78% $4.40 486 2,889 490 2,893 531 3,034 1900-2000 $3.35 244 985 29% $3.35 292 1,491 44% $3.35 367 1,708 50% $4.85 204 1,184 391 603 456 503 503 416 2,837 2,859 2,661 3,034 2,545 1,639 437 2,889 474 2,313 393 1,618 5 83% 84% 78% 89% 75% 48% • • • • • • WESTBOUND PEAK-HOUR VOLUMES AMTime 0400-0500 0500-0600 0600-0700 0700-0800 0800 -0900 0900-1000 Thursday 10103113 Friday 10/04113 $2.60 313 776 23% $2.60 2.80 707 21% 609 1,859 55% $4.20 582 53% $4.20 593 1,858 55% $4.05 527 1,570 46% 522 2.,077 61% $4.40 544 2,072 61% $4.40 558 2, 109 62% $4.20 537 1,968 58% 464 2,061 61% $4.90 459 2,015 59% $4.90 461 1,996 59% $4.75 449 1,832 54% 201 1,715 50% $440 238 1,819 54% $4.40 205 1,721 51% $4.20 236 1,517 45% 1,189 35% 178 1,463 43% $3.50 151 1,380 41% $3.50 175 1,501 44% $3.50 256 t-"l=r---:10,.,,10,.,,11....,13==•=-_,_,___,10,...,..108/13 Wednesday 10/09/13 Thursday .:~1;· 'll.~fl' ; .11m:':v(l1:;:., :~ap_), Pr1ce. H ·. 10/10/13 Friday M:i;f+:~ 10/11113 AMTime 0400 -0500 821 24% $2.60 301 1, 137 33% $2.60 302 809 24% $2.60 760 1,241 37% $2.60 453 902 27% 0500 -0600 $4.20 0600 -0700 $4.40 0700 -0800 $4.90 0800 -0900 $4.40 0900 -1000 $3.50 1,796 53% $4.20 440 1,666 49% $4.20 417 1,674 49% $4.20 838 2,085 61% $4.05 1010 2,188 64% AMTime 0400 -0500 $2.60 0500 -0600 $4.20 0600-0700 $4.40 0700 -0800 $4.90 0800 -0900 $4.40 0900 -1000 $3.50 AMTime 0400 -0500 $2.60 0500 -0600 $4.20 0600 -0700 $4.40 0700-0800 $4.90 0800 -0900 $4.40 0900 -1000 $3.50 AMTime 541 392 232 165 2,018 59% 1,852 54% 1,669 49% 1,371 40% 10114/13 ,c,, $4.40 $4.90 $4.40 $3.50 301 828 24% $2.60 521 1,725 51% $4.20 468 1,916 56% $4.40 325 207 188 273 517 445 427 201 168 1,571 46% $4.90 1,297 38% $4.40 1,510 44% $3.50 823 24% $2.60 1,792 53% $4.20 1,853 55% $4.40 1,962 58% $4.90 1,645 48% $4.40 1,635 48% $3.50 0400 -0500 $2.60 2.80 815 24% $2.60 0500 -0600 $4.20 525 1,827 54% $4.20 0600 -0700 $4.40 469 1,876 55% $4.40 0700-0800 $4.90 376 1,566 46% $4.90 0800 -0900 $4.40 232 1,506 44% $4.40 0900-1000 $3.50 155 1,635 48% $3.50 447 1,809 53% $4.40 405 1,804 53% $4.40 943 2,372 70% $4.20 929 2,264 67% 471 1,884 55% $4.90 458 1,995 59% $4.90 896 2,410 71% $4.75 584 1,908 56% 322 1,723 51% $4.40 194 1,771 52% $4.40 325 1,869 55% $4.20 362 1,524 45% 1,242 37% 187 1,764 52% $3.50 169 1,470 43% $3.50 339 1,666 49% $3.50 322 316 759 22% 629 1,910 56% $4.20 539 2,086 61% $4.40 429 225 187 534 438 190 142 303 1,987 1,782 1,615 798 1,799 2,112 1,993 1,732 1,303 58% $4.90 52% $4.40 48% $3.50 23% $2.60 53% $4.20 62% $4.40 59% $4.90 51% $4.40 38% $3.50 546 1,849 54% 510 2,017 59% $4.40 402 1,955 58% $4.90 219 1,651 49% $4.40 145 1,066 31% $3.50 336 813 24% 613 1,887 56% $4.20 553 2, 144 63% $4.40 433 224 162 2,053 60% $4.90 1,791 53% $4.40 1,350 40% $3.50 10117/13 Friday !iift# Prjd '' 376 868 26% $2.60 382 827 24% 729 2,018 59% $4.05 1104 2,292 67% 775 2,267 67% $4.20 505 1,850 54% 540 2,074 61% $4.75 476 1,842 221 1,697 50% $4.20 551 1,693 184 1,448 43% $3.50 541 1,450 54% 50% 43% 10123/13 Thursday 10/24113 Friday 10125113 ;;-.'&m>, Ptlce .. fiOV11'* V .Pri.e-·1··~:~x.· 317 556 532 440 246 179 793 1,794 2,053 23% 53% 60% $2.60 $4.20 $4.40 1,923 57% $4.90 1,801 1,339 53% $4.40 39% $3.50 492 1,417 42% 427 1,559 46% $4.40 502 2,238 66% $4. 90 230 1,701 50% $4.40 180 1,664 49% $3.50 326 544 528 488 241 176 791 1,803 23% 53% $2.60 361 808 $4.05 1,975 58% $4.20 2,055 60% $4. 75 1,738 51% $4.20 1,396 41% $3.50 1,856 546 2,004 423 1,968 206 1,658 138 1,122 841 722 427 197 139 1,994 2,023 1,805 1,244 1,017 6 24% 59% 60% 53% 37% 30% Transponder Distribution Status TRANSPONDER DISTRIBUTION f-~Octobe~·13-~~eptern~~J __ t:!.~ 1 Tags~, of Total I Tag~, of Total J Average To-Date Issued To New Accounts ,. V • .. AV• < , , ~ , f Additional Tags to Existing Accounts . 632 589 Replacement Transponders 1,491 ... Returned Account aosures Accounts Do\¥ nsizing_ Defective.Transpond~rs Total Issued 2,712 I J Total Returned 23.3% 25.1% > f•' At the end of October 2013, the 91 Express Lanes had 113,356 active customer accounts, with 169,532 transponders assigned to those accounts. 125,000 120,000 115,000 110,000 105,000 100,000 95,000 Number of Accounts by Fiscal Year As of October 31, 2013 119,992 Fiscal Year 7 • • • • • • Operational Highlights On-road Operations Customer Assistance Specialists (CAS) responded to 97 calls during October. The CAS team received 57 calls to assist disabled vehicles, 8 calls to remove debris and conducted 21 assists or traffic breaks. The CAS provided assistance to 9 accidents in the Express Lanes and 2 accidents in the general-purpose lanes . 8 Financial Highlights 91 Express Lanes Operating Statement Operating expenses: Contracted services Administrative fee Other professional services Credit card processing fees Toll road account servicing Other insurance expense Toll road maintenance supply repairs Patrol services Building equipment repairs and rnaint Other services Utilities Office expense Bad debt expense Bond Issuance Cost Miscellaneous <2> Leases YTD as of October 31, 2013 2,623,570.08 2,692,280.00 68,709.92 722,543.68 722, 184.00 (359.68) 576,796.29 933,712.00 356,915.71 262,228.37 349,860.00 87,631.63 207,514.36 158,272.00 (49,242.36) 107,471.00 83,300.00 (24,171.00) 65,384.05 82,886.00 17,501.95 133,531.84 141,608.00 8,076.16 124,227.81 201,960.00 77,732.19 3,280.00 28,332.00 25,052.00 6,748.39 6,664.00 (84.39) 7,916.56 11,621.00 3,704.44 506,766.77 47,428.00 (459,338. 77) 13,385.14 20,581.00 7,195.86 96,510.90 138,280.00 41,769.10 5,457,875.24 5,618,968.00 161,092.76 Total operating expenses De reciation and amortization <3l 1,298,829.97 1,298,829.97 Nonoperating revenues (expenses): Federal assistance grants Interest income Investment gain on derivative instrument Interest expense Other Total nonoperatin Transfers in Transfers out loss 7,264,277.28 7,734,183.00 167,859.40 262,067.00 (1,994,245.09) (2,538,456.00) 1,826,385.69 2,276,389.00 5,437,891.59 $ 5,457,794.00 $ 'Actual amounts are accounted for on the accrual basis of accounting in an enterprise fund. Budget amounts are accounted 1br on a modified accrual basis of accounting. 'Miscellaneous expenses include: Bond Insurance Costs, Bank Service Charge, Transponder Materials. •Depreciation and amortization are not budgeted items. Capital Asset Activity 469,905.72 (94,207.60) 544,210.91 450,003.31 19,902.41 2.6 (0.0) 38.2 25.0 (31.1) (29.0) 21.1 5.7 38.5 88.4 (1.3) 31.9 NIA (968.5) 35.0 30.2 2.9 NIA 6.1 NIA (35.9) NIA 21.4 NIA 19.8 NIA NIA 0.4 During the four months ending October 31, 2013, capital asset activities included $110,539 for the purchase of transponders. 9 • • • •m OCTA • • December 6, 2013 To: From: Subject: Overview State Route 91 Advisory Committee Kirk Avila,~neral Manager, 91 Express Lanes Fiscal Year 2012-13 91 Express Lanes Annual Financial Statements Vavrinek, Trine, Day and Co., LLP, an independent accounting firm, has completed the annual audit of the 91 Express Lanes financial statements for fiscal year 2012-13 and has issued its independent auditor's opinion. A copy of the audited financial statements is attached for the State Route 91 Advisory Committee review . Recommendation Receive and file the fiscal year 2012-13 91 Express Lanes Annual Financial Statements. Background The Orange County Transportation Authority (OCTA) prepares the financial statements for the 91 Express Lanes Fund, which present the results of operations during the preceding fiscal· year (FY) and the financial position at year end. In addition, OCTA is required to obtain an independent auditor's opinion on the financial statements. The audit was conducted by Vavrinek, Trine, Day and Co., LLP (VTD), an independent accounting firm, to obtain reasonable assurance as to whether the financial statements are free of material misstatement. Discussion VTD has completed its annual audit and has issued its opinion of the 91 Express Lanes financial statements for the FY ended June 30, 2013. The audits were conducted in accordance with generally accepted auditing standards and the standards applicable to financial audits contained in the Government Auditing Standards, issued by the Comptroller General of the Orange County Transportation Authority 550 South Main Street/ P.O. Box 14184 I Orange I California 92863-1584 I (714) 560-0CTA (6282) Fiscal Year 2012-13 91 Express Lanes Annual Financial Statements Page2 United States. The auditors have issued an unmodified opinion on the financial statements, indicating that the statements present fairly, in all material aspects, the financial position of the 91 Express Lanes Fund, as of June 30, 2013. A copy of the audited financial statements is included as Attachment A. Summary Vavrinek, Trine, Day and Co., LLP, an independent accounting firm, has audited the 91 Express Lanes financial statements and has issued its unmodified opinion as to the fairness of the financial statements. Attachment A. 91 Express Lanes Fund (An Enterprise Fund of the Orange County Transportation Authority) Financial Statements Year Ended June 30, 2013. • • • • • • 91 EXPRESS LANES FUND (An Enterprise Fund of the Orange County Transportation Authority) FINANCIAL ST A TEMENTS Year Ended June 30, 2013 ATTACHMENT A 91 Express Lanes Fund (An Enterprise Fund of the Orange County Transportation Authority) • Financial Statements For the Fiscal Year Ended June 30, 2013 Contents Independent Auditors' Report .................................................................................................................... 1 Management's Discussion and Analysis ................................................................................................... 3 Financial Statements: Statement of Fund Net Position .................................................................................................................. 8 Statement of Revenues, Expenses and Changes in Fund Net Position ................................................. 9 Statement of Cash Flows ........................................................................................................................... 10 Notes to the Financial Statements ............................................................................................................ 12 • • • • • Vavrinek, Trine, Day & Co., LLP Certified Public Accountants INDEPENDENT AUDITORS' REPORT Board of Directors Orange County Transportation Authority Orange, California Report on the Financial Statements ~A.LUE il'HE \DIFFERENCE We have audited the accompanying financial statements of the 91 Express Lanes Fund, an enterprise fund of the Orange County Transportation Authority (OCT A), as of and for the year ended June 30, 2013, and the related notes to the financial statements, as listed in the table of contents. Management's Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error . Auditors' Responsibility Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. Opinion In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the 91 Express Lanes Fund and the respective changes in financial position and, where applicable, cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America. 1 25231 Paseo De Alicia, Suite 100 Laguna Hills, CA 92653 Tel: 949.768.0833 Fax: 949.768.8408 www.vtdcpa.com FRESNO • LAGUNA HILLS • PALO ALTO • PLEASANTON • RANCHO CUCAMONGA • RIVERSIDE • SACRAMENTO Emphasis of Matter Individual Fund Financial Statements As discussed in Note 1, the financial statements present only the 91 Express Lanes Enterprise Fund of OCTA and do not purport to, and do not, present fairly the financial position of OCT A as of June 30, 2013, and the changes in its financial position, or where applicable, its cash flows for the year then ended in accordance with accounting principles generally accepted in the United States of America. Our opinion is not modified with respect to this matter. Implementation of new accounting standards As discussed in Note 1, the 91 Express Lanes Fund adopted Governmental Accounting Standards Board (GASB) Statement No. 62 -Codification of Accounting and Financial Reporting Guidance Contained in Pre- November 30, 1989 FASB and AICPA Pronouncements, GASB Statement No. 63 -Financial Reporting of Deferred Outflows of Resources, Deferred Inflows of Resources, and Net Position and GASB Statement No. 65 - Items Previously Reported as Assets and Liabilities, effective July 1, 2012. Our opinion is not modified with respect to this matter. Other Matters Required Supplementary Information • Accounting principles generally accepted in the United States of America require that the management's discussion and analysis on pages 3 through 7 be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited • procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management's responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated October 31, 2013 on our consideration of OCTA's internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering OCTA's internal control over financial reporting and compliance. \/a.vr1 ~, r;,,u. , V..r ~,co. LLP Laguna Hills, California October 31, 2013 2 • • • • 91 Express Lanes Fund Management's Discussion and Analysis (unaudited) For the Fiscal Year Ended June 30, 2013 As management of the 91 Express Lanes Fund (91 EL), an enterprise fund of the Orange County Transportation Authority, we offer readers of the 91 EL financial statements this narrative overview and analysis of the 91 EL's financial activities for the fiscal year ended June 30, 2013. We encourage readers to consider the information on financial performance presented in conjunction with the financial statements that begin on page 8. All amounts, unless otherwise indicated, are expressed in thousands of dollars. Financial Highlights • OCTA implemented GASB 65 during this fiscal year. The impact of this change in accounting principle was to write off the cost of issuance balance as of July l, 2012 and to restate the beginning net position by $2,621. • Total net position of the 91 EL was $88,716 and consisted of net investment in capital assets of $14,620; restricted net position of $20,383; and unrestricted net position of $53,713. • Net position increased $18,078 during fiscal year 2012-13. The increase is primarily due to operating revenues in excess of operating expenses and a gain on derivative instrument, offset by bond interest expense . • Nonoperating revenues (expenses) increased $5,247 from the prior year primarily due to the gain on derivative instrument of $1,312 in fiscal year 2012-13 compared to a loss of $3,639 in fiscal year 2011-12. Overview of the Financial Statements This discussion and analysis is intended to serve as an introduction to the 91 EL' s financial statements. The financial statements are comprised of the fund financial statements and notes to the financial statements. The statement of fund net position presents information on all of the 91 EL' s assets, deferred outflows of resources, deferred inflows of resources and liabilities, with the difference reported as net position. Over time, increases or decreases in net position may serve as a useful indicator of whether the financial position of the 91 EL is improving or deteriorating. The statement of revenues, expenses and changes in fund net position presents information showing how the 91 EL's net position changed during the fiscal year. All changes in net position are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of related cash flows. The 91 EL fund financial statements can be found on pages 8-11 of this report. Notes to the financial statements provide additional information that is essential to a full understanding of the data provided in the financial statements. The notes to the financial statements can be found on pages 12-29 of this report. 3 91 Express Lanes Fund Management's Discussion and Analysis 91 Express Lanes Financial Analysis As noted previously, net position may serve over time as a useful indicator of the 91 EL's financial position. At June 30, 2013, the 91 EL's net position was $88,716, a $18,078 increase from June 30, 2012. Our analysis below focuses on net position (Table 1) and changes in net position (Table 2) of the 91 EL's financial activities. Table 1 91 Express Lanes Fund Net Position 2013 2012 Current and other assets $ 63,054 $ 53,908 Restricted assets 39,018 38,975 Capital assets, net 3,937 4,844 Intangible asset -toll road franchise, net 135,801 138,388 Total assets 241,810 236,115 Total deferred outflows of resources 16,106 17,174 Current liabilities 14,867 14,776 Long-term liabilities 154,333 167,875 Total liabilities 169,200 182,651 Net position: Invested in capital assets 14,620 13,685 Restricted 20,383 20,340 Unrestricted 53,713 36,613 Total net position, as restated $ 88,716 $ 70,638 The 91 EL's net position invested in capital assets was $14,620, compared to $13,685 in 2012. The 91 EL's net position reflect its investment in capital assets (i.e., intangible assets; improvements; communications equipment; computer hardware and software; equipment, furniture and fixtures; and transponders), less any related outstanding debt used to acquire these assets. The 91 EL uses these capital assets to provide improved mobility for 91 EL customers and commuters along the State Route (SR) 91 corridor. The increase of $935 in net position invested in capital assets was primarily related to $4,429 reduction in related outstanding debt used to acquire capital assets and continued depreciation. Restricted net position, representing resources subjected to external restrictions on how they may be used, were 23% and 29% of the total net position at June 30, 2013 and 2012, respectively. The increase in restricted net position of $43 is related to investment activity in bond reserve accounts. Unrestricted net position represents the portion of net position that can be used to finance day-to-day operations without constraints established by debt covenants, enabling legislation, or other legal requirements. Unrestricted net position changed from $36,613 at June 30, 2012 to $53,713 at June 30, 2013. This increase of $17,100 was primarily due to operating revenues in excess of operating expenses. 4 • • • • • • 91 Express Lanes Fund Management's Discussion and Analysis The analysis in Table 2 focuses on the changes in net position. Table 2 91 Express Lanes Fund Changes in Net Position 2013 2012 Revenues: Operating revenues: Tolls, fees, and fines $ 39,288 $ 37,742 Total operating revenues 39,288 37,742 Operating expenses: Management and operational services 7,505 7,222 Administrative overhead 2,168 1,848 Other operating expenses 7 2,774 Insurance claims and premiums 312 308 Professional services 2,580 2,651 General and administrative 508 439 Depreciation and amortization 3,887 5,994 Total operating expenses 16,967 21,236 Operating income 22,321 16,506 Nonoperating revenues (expenses): Investment earnings 198 521 Investment gain/ (loss) on derivative 1,312 (3,639) instrument Interest expense (5,773) (6,464) Other 21 93 Total nonoperating revenues (expenses) (4,242) (9,489) Income before transfers 18,079 7,017 Transfers to OCT A funds (1) (101) Changes in net position, as restated 18,078 6,916 Total net position-beginning, as restated 70,638 63,722 Total net position-ending $ 88,716 $ 70,638 91 EL's total operating revenues increased by 4%, while the total operating expenses decreased by 20%. The increase in operating revenues is primarily due to an increase in revenue from toll road fees and violations. The decrease in operating expenses is primarily attributable to a 35 year extension of the Franchise Agreement resulting in a decrease in amortization and to the implementation of GASB 65, which resulted in the elimination of the amortization of bond issuance costs and in the restatement of ending net position for fiscal year 2012 in the amount of $2,621 . 5 91 Express Lanes Fund Management's Discussion and Analysis Nonoperating revenues (expenses) increased $5,247 due to an investment gain on the termination of the derivative investment as well as a decrease in interest expense due to the termination of the interest rate swap. Capital Assets and Intangible Asset Capital Assets As of June 30, 2013, the 91 EL had $3,937 net of accumulated depreciation, invested in a broad range of capital assets including: improvements, communications equipment, computer hardware and software, transponders, and equipment, furniture and fixtures (Table 3). The total decrease in the 91 EL's capital assets for fiscal year 2012-13 was $907, which was primarily due to depreciation. Table3 91 Express Lanes Fund Capital Assets, net of depreciation and amortization Improvements Communications equipment Computer hardware and software Transponders Equipment, furniture, and fixtures Total capital assets, net 2013 1,855 83 927 1,027 45 $3,937 2012 2,029 197 1,380 1,183 . 55 $4,844 Major capital asset deletions during 2013 included $467 for disposal of various communication equipment/ systems. The 91 EL has outstanding capital expenditure commitments, the most significant of which is $2,173 for transponder purchases. More detailed information about the 91 EL' s capital assets is presented in note 4 to the financial statements. Intangible Asset Intangible asset activity for the year ended June 30, 2013 was as follows: Beginning Ending Balance Increases Decreases Balance Toll facility franchise $ 205,264 $ $ $ 205,264 Less accumulated amortization (66,876) (2,587) (69,463) Total toll facility franchise, net $ 138,388 $ (2,587) $ $ 135,801 More detailed information about the 91 EL' s intangible asset is presented in note 5 to the financial statements. 6 • • • • • • 91 Express Lanes Fund Management's Discussion and Analysis Debt Administration As of June 30, 2013, the 91 EL had $155,460 in tax-exempt bonds outstanding compared to $160,705 at June 30, 2012, as presented in Table 4. Tax-exempt bonds Table4 91 Express Lanes Fund Outstanding Debt 2013 2012 $155,460 $160,705 Additional information on long-term debt can be found in note 7 to the financial statements. Economic and Other Factors The 91 EL makes up $39,436 or 3.2% of OCT A's fiscal year 2013-14 revenue budget. In fiscal year 2013-14, toll revenue is forecasted to decrease by 3.7% due to the addition of a 5th lane on the SR-91 corridor which will encourage patrons to use the general purpose lanes. However, the average long term rate of growth for toll road revenues beyond 2013-14 is 4.9% . The majority of expenses related to the 91 EL within the fiscal year 2013-14 budget are on-going general costs related to day to day operations of the toll facility. Since the 91 EL is a fully electronic toll facility, motorists pay tolls through the convenient use of windshield mounted FasTrak™ transponders that automatically deduct toll charges from a prepaid account. At the end of fiscal year 2012-13, there were 112,929 active customer accounts, with 168,507 transponders assigned to those accounts. OCT A, in concert with Caltrans and Riverside County Transportation Commission (RCTC), issued an annual SR 91 Implementation Plan to establish a program of projects eligible for funding by potential excess 91 EL toll revenue and other funds. The total cost for the first set of projects is approximately $111,200. One of these projects is the addition of a westbound auxiliary lane on SR-91 beginning at the northbound SR-55 to the westbound SR-91 connector through the Tustin A venue interchange. Construction is to begin in fiscal year 2013-14 and is expected to be completed in fiscal year 2014-15. This project requires close coordination with Cal trans in order to minimize impacts to the 91 EL' s operations. Contacting 91 EL's Management This financial report is designed to provide a general overview of the 91 EL's finances for all those with an interest in the government's finances and to demonstrate the 91 EL' s accountability for the money it receives. Questions concerning any of the information provided in this report or requests for additional information should be addressed to the Finance and Administration Division at the Orange County Transportation Authority, 550 South Main Street, P.O. Box 14184, Orange, California 92863-1584 . 7 91 Express Lanes Fund (An Enterprise Fund of the Orange County Transportation Authority) Statement of Net Position June 30, 2013 Assets Current Assets: Cash and investments $ Receivables: Interest Violations, net Other, net Other assets Total current assets Noncurrent Assets: Restricted cash and investments: Cash equivalents Capital assets, net: Depreciable Intangible asset -tollroad franchise, net Total noncurrent assets Total Assets Deferred Outflows of Resources Deferred charge on refunding Total Deferred Outflows of Resources Liabilities Current Liabilities: Accounts payable Accrued interest payable Due to other governments Unearned revenue Other liabilities Bonds payable -due within one year Total current liabilities Noncurrent Liabilities: Bonds payable -due in more than one year Total noncurrent liabilities Total Liabilities Net Position Net investment in capital assets Restricted for: Debt service Capital Operating reserves Unrestricted Total Net Position $ See accompanying notes to the financial statements. 8 • 57,145,015 92,352 4,481,401 1,069,118 267,120 63,055,006 39,017,588 3,936,580 135,801,367 178,755,535 241,810,541 16,106,073 16,106,073 • 3,221,385 1,629,590 66,635 4,128,411 295,994 5,525,000 14,867,015 154,333,429 154,333,429 169,200,444 14,620,383 6,988,259 10,155,766 3,238,m 53,712,991 88,716,170 • • • • 91 Express Lanes Fund (An Enterprise Fund of the Orange County Transportation Authority) Statement of Revenues, Expenses and Changes in Fund Net Position For the Year Ended June 30, 2013 Operating revenues: Tolls, fees, and fines $ Operating expenses: Management and operational services Administrative overhead Other operating expenses Insurance claims and premiums Professional services General and administrative Depreciation and amortization Total operating expenses Operating income Nonoperating revenues (expenses): Investment earnings Investment gain on derivative instrument Interest expense Other Total nonoperating revenues (expenses) Income before transfers Transfers to other OCT A funds Change in net position Total net position -beginning, as restated Total net position -ending $ See accompanying notes to the financial statements . 9 39,288,300 7,504,955 2,167,631 6,558 311,841 2,579,731 508,628 3,887,442 16,966,786 22,321,514 198,090 1,311,906 (5,773,239) 21,369 {4,241,874} 18,079,640 {1,172) 18,078,463 70,637,707 88,716,170 91 Express Lanes Fund (An Enterprise Fund of the Orange County Transportation Authority) Statement of Cash Flows For the Year Ended June 30, 2013 Cash flows from operating activities: Receipts from customers and users $ Payments to suppliers Payments for OCT A interfund services used Miscellaneous revenue received Net cash provided by operating activities Cash flows from noncapital financing activities: Transfers to OCT A funds Net cash used for noncapital financing activities Cash flows from capital and related financing activities: Principal payment on long-term debt Interest paid on long-term debt Acquisition and construction of capital assets Net cash used for capital and related financing activities Cash flows from investing activities: Interest received Termination payment for derivative instrument Gain/ (loss) from derivatives Net cash used for investing activities Net increase in cash and cash equivalents Cash and cash equivalents at beginning of year Cash and cash equivalents at end of year $ Reconciliation of cash and cash equivalents to statement of net position: Cash and investments $ Restricted cash and investments Total cash and cash equivalents $ See accompanying notes to the financial statements. 10 • 40,460,424 (10,633,837) (2,167,631) 21,369 27,680,325 (l,177~ {1,177) (5,245,000) (5,447,188) {393,139) {11,085,3222 168,423 • (7,764,090) 1,311,906 (6,283,761) 10,310,060 85,852,543 96,162,603 57,145,015 39,017,588 96,162,603 • • • • 91 Express Lanes Fund (An Enterprise Fund of the Orange County Transportation Authority) Statement of Cash Flows (Continued) For the Year Ended June 30, 2013 Reconciliation of operating income (loss) to net cash provided by (used for) operating activities: Operating income $ Adjustments to reconcile operating income to net cash provided by (used for) operating activities: Depreciation expense Amortization of Franchise Agreement Amortization of prepaid expense Amortization of prepaid insurance Miscellaneous Change in assets and liabilities: Violations receivables, net Other receivables, net Other assets Accounts payable Due to other governments Unearned revenue Other liabilities Total adjustments Net cash provided by operating activities $ Noncash capital, financing and investing activities: Amortization of bond premium $ Amortization of bond deferred refunding charges $ See accompanying notes to the financial statements . 11 22,321,514 1,300,749 2,586,693 257,138 311,840 21,369 1,121,131 46,010 (586,188) 315,059 (19,974) 10,684 (5,700) 5,358,811 27,680,325 (252,541) 1,067,806 91 Express Lanes Fund (An Enterprise Fund of the Orange County Transportation Authority) Notes to the Financial Statements Year Ended June 30, 2013 1. Reporting Entity On January 3, 2003, the Orange County Transportation Authority (OCTA) purchased from the California Private Transportation Company (CPTC) its interest in a Franchise Agreement for the 91 Express Lanes. See note 5 for further discussion of the service concession arrangement. These financial statements include only the activities of the 91 Express Lanes Fund, an enterprise fund of OCT A. These financial statements are not intended to present the activities of OCT A. 2. Summary of Significant Accounting Policies The accounting policies of the 91 Express Lanes Fund are in conformity with generally accepted accounting principles applicable to governmental units. The Governmental Accounting Standards Board (GASB) is the accepted standard-setting body for establishing accounting and financial reporting principles. Basis of Accounting The financial statements of the 91 Express Lanes Fund are reported using the economic resources measurement focus and the accrual basis of accounting. Revenues, consisting substantially of tolls and fees, are recorded when earned, and expenses are recorded when a liability is incurred, regardless of the timing of related cash flows. Toll amounts are collected from customers on a prepaid basis, and unearned tolls are reported as unearned revenue. Toll revenue is recognized when the customers utilize the toll road facility. Enterprise funds distinguish operating revenues and expenses from nonoperating items. Operating revenues and expenses generally result from providing services in connection with an enterprise fund's principal ongoing operations. The principal operating revenues of the 91 Express Lanes Fund are charges to customers for use of the toll facility. Operating expenses for the 91 Express Lanes Fund include the cost of services, administrative expenses, and depreciation and amortization on capital assets. All revenues and expenses not meeting this definition are reported as nonoperating revenues and expenses. When both restricted and unrestricted resources are available for use, it is the 91 Express Lanes Fund's policy to use restricted resources first and then unrestricted resources as they are needed. Cash and Investments The 91 Express Lanes Fund participates in OCT A's Commingled Investment Pool. OCT A maintains cash and investments in accordance with the Annual Investment Policy (AIP) adopted 12 • • • • • • 91 Express Lanes Fund Notes to the Financial Statements Year Ended June 30, 2013 initially by OCTA's Board of Directors (Board) on May 8, 1995, and most recently amended June 10, 2013. The AIP complies with, or is more restrictive than, the California Government Code (Code). At June 30, 2013, the investment portfolios were maintained at Union Bank as custodial bank. OCT A's Commingled Investment Pool is managed by four private sector investment managers. Separate investment manager accounts are maintained for the proceeds of bond issues, with the earnings for each bond issue accounted for separately. Cash from other OCTA revenue sources is commingled for investment purposes in the OCTA Commingled Investment Pool, with investment earnings allocated to the different accounts based on average daily dollar account balances. Investments in U.S. government and U.S. agency securities, medium-term notes, repurchase agreements, variable and floating rate securities, commercial paper, mortgage and asset-backed securities and corporate notes are carried at fair value based on quoted market prices, except for securities with a remaining maturity of one year or less at purchase date, which are carried at cost. Treasury mutual funds are carried at fair value based on each fund's share price. The Orange County Treasury Investment Pool (OCIP) is carried at fair value based on the value of each participating dollar as provided by the OCIP. The state managed Local Agency Investment Fund (LAIF) is carried at fair value based on the value of each participating dollar as provided by LAIF . The AIP requires that assets in the portfolio consist of the following investments, with maximum permissible concentrations based on book value, and may be more restrictive than applicable state statutes for the following investment types: OCTA notes and bonds, U.S. treasuries, federal instrumentality securities, federal agencies, State of California and local agency obligations, bankers acceptance, commercial paper, negotiable certificates of deposit, repurchase agreements, medium-term maturity corporate securities, money market funds, other mutual funds, mortgage or asset-backed securities, LAIF, OCIP, variable and floating rate securities and bank deposits. Investment agreements are also allowed for bond issues. All investments are subject to a maximum maturity of five years, unless specific direction to exceed the limit is given by the Board and as permitted by the Code. OCT A policy is to invest only in high quality instruments as permitted by the Code, subject to the limitations of the AIP. Cash and Cash Equivalents For the purpose of the statement of cash flows, OCT A considers all short-term investments with an initial maturity of three months or less to be cash equivalents. All deposits, commercial paper, money market mutual funds, certificates of deposit, and the 91 Express Lanes Fund's share of the OCT A Commingled Investment Pool represent cash and cash equivalents for cash flow purposes. Restricted Cash and Investments Investments set aside in the Reserve Fund, Supplemental Reserve Fund, Major Maintenance Reserve Fund, and Operating Reserve Fund are pursuant to terms of the 2003 Indenture for the 13 91 Express Lanes Fund Notes to the Financial Statements Year Ended June 30, 2013 $195,265,000 Toll Road Revenue Refunding Bonds and their use is limited by applicable debt covenants. Permitted investments per the debt covenants include: government obligations, State of California and local agency obligations, bankers acceptances, commercial paper, negotiable certificates of deposit, repurchase agreements, money market funds, other mutual funds, investment agreements, OCIP, and variable and floating rate securities. Receivables Violations receivables include an estimate for outstanding unpaid violations that the 91 Express Lanes Fund anticipates to collect. For violations less than 90 days old, the receivable is based on a twelve-month average of violations collected, and is recorded net of an allowance for uncollectible accounts of $541,563 at June 30, 2013. For unpaid violations in excess of 90 days, the receivable is estimated using a 3-year average of violations collected and is recorded net of uncollectible accounts as the majority is not considered probable of collection. Other receivables include amounts due from other California toll road agencies related to their customers' use of the 91 Express Lanes, as well as amounts owed from customers, net of an allowance for uncollectible accounts of $414,861 at June 30, 2013. An estimated $4 million of violation and customer receivables are not expected to be collected within one year. The 91 Express Lanes utilizes an outside collection agency to assist in the recovery of unpaid customer balances and violations exceeding 90 days. Other Assets Other assets include prepaid expenses and refundable deposits. Capital Assets Capital assets include improvements, equipment, computer hardware, software, furniture and fixtures, and transponders. Capital assets are defined by the 91 Express Lanes Fund as assets with an initial, individual cost of more than $5,000 and a useful life in excess of one year. It is also the 91 Express Lanes Fund's policy to capitalize transponder purchases, as they are considered a significant class of assets even though individually under $5,000. Such assets are recorded at historical cost. The costs of normal maintenance and repairs that do not add value to the asset or materially extend asset lives are not capitalized. 14 • • • • • • 91 Express Lanes Fund Notes to the Financial Statements Year Ended June 30, 2013 Capital assets are depreciated using the straight-line method over the following estimated useful lives: Capital Asset Type Improvements Equipment, furniture and fixtures Computer hardware and software Transponders Intangible Asset -Toll Facility Franchise Useful Life 10-30 years 3-10 years 3-5 years 5 years OCT A purchased the interest in the franchise agreement for the toll facility from CPTC on January 3, 2003. The toll facility franchise is amortized over the remaining life of the franchise agreement through December 2065. Deferred outflows/inflows of resources In addition to assets, the statement of financial position will sometimes report a separate section for deferred outflows of resources. This separate financial statement element, deferred outflows of resources, represents a consumption of net position that applies to a future period and so will not be recognized as an outflow of resources (expense/expenditure) until then. OCTA only has one item that qualifies for reporting in this category. It is the deferred charge on refunding reported in the statement of net position. A deferred charge on refunding results from the difference in the carrying value of refunded debt and its reacquisition price. This amount is deferred and amortized over the shorter of the life of the refunded or refunding debt. In addition to liabilities, the statement of financial position will sometimes report a separate section for deferred inflows of resources. This separate financial statement element, deferred inflows of resources, represents an acquisition of net position that applies to a future period and will not be recognized as an inflow of resources (revenue) until that time. Interest Rate Swap As a means of lowering borrowing costs on variable rate debt compared to fixed rate bonds at the time of issuance in November 2003, OCTA entered into two parity interest rate swaps totaling $100,000,000. The parity swaps were entered into to effectively change OCTA's variable rate bonds to a synthetically fixed rate of 4.06227%. On March 15, 2011, OCTA terminated one of the swaps with a notional amount of $75,000,000. On January 30, 2013, OCTA terminated the remaining swap with a notional amount of $25,000,000. Refer to note 6 . 15 91 Express Lanes Fund Notes to the Financial Statements Year Ended June 30, 2013 Risk Management The 91 Express Lanes Fund purchases commercial property insurance including business interruption, earthquake and flood coverage related to the toll facility. Additionally, the 91 Express Lanes Fund participates in OCTA's self-insurance general liability program. The liability claims are resolved by OCT A and are an expense of the 91 Express Lanes Fund. Net Position Net position represents the difference between assets and deferred outflow of resources and liabilities and deferred inflow of resources and is classified into three categories: • Net investment in capital assets -Reflects net position of the 91 Express Lanes Fund invested in capital assets net of related debt. This net position is not accessible for other purposes. • Restricted net position -Represents net position not accessible for general use, with the use subject to restrictions enforceable by third parties. The Statement of Net Position includes restricted net position for the portion of debt attributable to unspent proceeds, restricted by the 2003 Toll Road Revenue Refunding Bonds Master Indenture of Trust for debt service, capital, and operating expenses. • Unrestricted net position -Represents net position available for general use . Use of Estimates The preparation of the financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect certain reported amounts and disclosures during the reporting period. As such, actual results could differ from those estimates. New Effective Accounting Pronouncements In fiscal year 2013, OCT A implemented the following GASB Statements: GASB Statement No. 60 In November 2010, GASB issued Statement No. 60, Accounting and Financial Reporting for Service Concession Arrangements. The objective of this Statement is to improve financial reporting by addressing issues related to service concession arrangements (SCAs), which are a type of public-private or public-public partnership. OCT A implemented this statement in fiscal year 2013. See note 5. 16 • • • • • • 91 Express Lanes Fund Notes to the Financial Statements Year Ended June 30, 2013 GASB Statement No. 61 In November 2010, GASB issued Statement No. 61, The Financial Reporting Entity: Omnibus -an amendment of GASB Statements No. 14 and No. 34. The objective of this Statement is to improve financial reporting for governmental financial reporting entities. This Statement modifies certain requirements for inclusion of component units in the financial reporting entity and amends the criteria for reporting component units as if they were a part of the primary government in certain circumstances. This statement does not apply to the 91 EL. GASB Statement No. 62 In June 2011, GASB issued Statement No. 62, Codification of Accounting and Financial Reporting Guidance Contained in Pre-November 30, 1989 FASB and AICPA Pronouncements. The objective of this Statement is to incorporate into the GASB' s authoritative literature certain accounting and financial reporting guidance that is included in FASB and AICPA pronouncements issued on or before November 30, 1989 which does not conflict with or contradict GASB pronouncements. OCTA has implemented this GASB for the fiscal year ending June 30, 2013. Refer to note 10 for more information. GASB Statement No. 63 In June 2011, GASB issued Statement No. 63, Financial Reporting of Deferred Outflows of Resources, Deferred Inflows of Resources, and Net Position. This Statement provides financial reporting guidance for deferred outflows of resources and deferred inflows of resources and the resulting net position. This statement is effective for OCT A's fiscal year ending June 30, 2013. OCT A only has one item that qualifies for reporting in this category. It is the deferred charge on refunding reported in the statement of net position. A deferred charge on refunding results from the difference in the carrying value of refunded debt and its reacquisition price. This amount is deferred and amortized over .the shorter of the life of the refunded or refunding debt and must be reported as a deferred outflow of resources. Refer to note 10 for more information on the effects of this restatement. GASB Statement No. 65 In March 2012, GASB issued Statement No. 65, Items Previously Reported as Assets and Liabilities. This statement establishes accounting and financial reporting standards that reclassify, as deferred outflows of resources or deferred inflows of resources, certain items that were previously reported as assets and liabilities and recognizes, as outflows of resources or inflows or resources, certain items that were previously reported as assets and liabilities. OCTA has early implemented this GASB for the fiscal year ending June 30, 2013. Refer to note 10 for more information . 17 91 Express Lanes Fund Notes to the Financial Statements Year Ended June 30, 2013 3. Cash and Investments Cash and investments are comprised of the following at June 30, 2013: Deposits: Petty cash Deposits Total deposits Investments: With OCT A Commingled Investment Pool With trustee Total investments Total cash and investments $ 550 406,316 406,866 56,739,672 39,016,065 95,755,737 $ 96,162,603 Total deposits and investments are reported in the financial statements as: Unrestricted cash and investments $ 57,145,015 Restricted cash and investments: Cash equivalents 39,017,588 Total cash and investments $ 96,162,603 As of June 30, 2013, the 91 Express Lanes Fund had the following investments: Investment OCTA Commingled Investment Pool Held by trustee: Money Market Mutual Funds Certificates of Deposit Commercial Paper Total investments Portfolio Weighted Average Interest Rate Risk Fair Value $ 56,739,672 2,745 13,393,000 25,620,320 $ 95,755,737 Principal $ 56,675,790 2,745 13,393,000 25,620,320 $ 95,691,855 Interest Rate Maturity Range Range Discount, 7/1/13- 0.125%-7.375% 6/1/18 Variable 7/1/13 .12% 8/1/13 Discount 8/1/13 Weighted Average Maturity (Years) 1.93 1 Day .09 .09 1.86 OCT A manages exposure to declines in fair value from increasing interest rates by having an investment policy that limits maturities to five years while also staggering maturities. OCTA 18 • • • • • • 91 Express Lanes Fund Notes to the Financial Statements Year Ended June 30, 2013 maintains a low duration strategy, targeting an estimated average portfolio duration of three years or less, with the intent of reducing interest rate risk. Portfolios with low duration are less volatile, therefore less sensitive to interest rate changes. In accordance with the AIP, amounts restricted for debt service reserves are invested in accordance with the maturity provision of their specific indenture, which may extend beyond five years. As of June 30, 2013, the 91 Express Lanes Fund participated in OCT A's Commingled Investment Pool which had asset-backed securities totaling $41,889,189 recorded in the pool. The underlying assets are consumer receivables that include credit cards, auto and home loans. The securities have a fixed interest rate and are rated AAA by at least two of the three nationally recognized statistical rating organizations. As of June 30, 2013, OCT A's Commingled Investment Pool had the following variable rate notes: Investment Fair Value Cou:eon Multi2lier Cou2on Reset Date American Express $ 1,008,687 LIBOR + 59 basis points Quarterly Apple 1,318,878 LIBOR + 5 basis points Quarterly Apple 1,085,324 LIBOR + 25 basis points Quarterly Bank of America 757,773 LIBOR + 82 basis points Quarterly BB&T Corporation 622,380 LIBOR + 70 basis points Quarterly Daimler Finance 722,513 LIBOR + 78 basis points Quarterly Goldman Sachs 651,697 LIBOR + 100 basis points Quarterly Goldman Sachs 1,079,917 LIBOR + 120 basis points Quarterly JP Morgan Chase 2,035,512 LIBOR + 90 basis points Quarterly Merck & Co Bonds 858,349 LIBOR + 36 basis points Quarterly NBC Universal 611,812 LIBOR + 53.7 basis points Quarterly Target 1,101,573 LIBOR + 17 basis points Quarterly Toronto Dominion 1,100,209 LIBOR + 18 basis points Quarterly VF Corporate Notes 500,565 LIBOR + 75 basis points Quarterly Total Variable Rate Notes $ 13,455,189 Custodial Credit Risk Custodial credit risk for deposits is the risk that, in the event of the failure of a depository financial institution, a government will not be able to recover its deposits or will not be able to recover collateral securities that are in the possession of an outside party. The custodial credit risk for investments is the risk that, in the event of the failure of the counterparty (e.g., broker- dealer) to a transaction, a government will not be able to recover the value of its investment or collateral securities that are in the possession of another party. OCT A's investment policy requires that a third party bank custody department hold all securities owned by OCTA. All 19 91 Express Lanes Fund Notes to the Financial Statements Year Ended June 30, 2013 trades are settled on a delivery versus payment basis through OCT A's safekeeping agent. At June 30, 2013, OCTA did not have any deposits or securities exposed to custodial credit risk and there was no securities lending. Credit Risk The AIP sets minimum acceptable credit ratings for investments from any of the three nationally recognized rating services Standard & Poor' s Corporation (S & P), Moody's Investors Service (Moody's), and Fitch Ratings (Fitch). For an issuer of short-term debt, the rating must be no less than A-1 (S & P), P-1 (Moody's), or F-1 (Fitch), while an issuer of long-term debt must be rated no less than an "A" by two of the three rating services. LAIF and OCT A's Commingled Investment Pool are not rated. The following is a summary of the credit quality distribution and concentration of credit risk by investment type as a percentage of fair value of the 91 Express Lanes Fund's portfolio at June 30, 2013. (NR means Not Rated): % of 91 Express Investments S&P Moody's Fitch Lanes Portfolio OCT A Commingled Investment Pool NR NR NR 59.25% Held by trustee: Money Market Mutual Funds AAA Aaa AAA 0.00% Certificates of Deposit A-1 P-1 Fl 13.99% Commercial Paper: General Electric A-1 P-1 NR 26.76% Total 100.00% Concentration of Credit Risk At June 30, 2013, OCTA did not exceed the AIP maximum concentrations as stated below: Issuer/Counter-Party Diversification Guidelines For All Securities Except Federal Agencies, Federal Instrumentalities, Investment Agreements, Repurchase Agreements and 91 Express Lanes Debt • 5% for any one corporation, bank, local agency, special purpose vehicle or other corporate name for one or more series of securities. Issuer/Counter-Party Diversification Guidelines For Federal Agencies, Federal Instrumentalities and Repurchase Agreements • 35% for any one Federal Agency or Federal Instrumentalities. 20 • • • • • • 91 Express Lanes Fund Notes to the Financial Statements Year Ended June 30, 2013 • 50% for any one repurchase agreement counter-party name if the maturity/term is less than or equal to 7 days. • 35% for any one repurchase agreement counter-party name if the maturity/term is greater than 7 days. Issuer/Counter-Party Diversification Guidelines for OCT A's 91 Express Lanes Debt OCTA can purchase all or a portion of the Orange County Transportation Authority's Toll Road Revenue Refunding Bonds (91 Express Lanes) Series B Bonds maturing December 15, 2030 providing the purchase does not exceed 25% of the Maximum Portfolio and is authorized by the Internal Revenue Service. The following is a summary of the concentration of credit risk by issuer as a percentage of the fair value of the 91 Express Lanes Fund's portfolio at June 30, 2013: Issuer Bank of the West (Certificates of Deposit) General Electric (Commercial Paper) Investment in State Investment Pool Amount $ 13,393,000 $ 25,620,320 % of 91 Express Lanes Portfolio 13.99% 26.76% OCTA is a voluntary participant in LAIF which is regulated by the California Government Code. The Investment Advisory Board provides oversight for LAIF, consisting of five members as designated by statute, which includes the Treasurer of the State of California. The fair value of OCT A's investment in this pool is reported in the accompanying financial statements based upon OCT A's pro-rata share of the fair value provided by LAIF for the entire LAIF portfolio (in relation to the amortized cost of that portfolio). The balance available for withdrawal is based on the accounting records maintained by LAIF, which are recorded on an amortized cost basis . 21 91 Express Lanes Fund Notes to the Financial Statements Year Ended June 30, 2013 4. Capital Assets Capital asset activity for the 91 Express Lanes Fund for the year ended June 30, 2013 is as follows: Beginning Ending Balance Increases Decreases Balance Capital assets, being depreciated: Improvements $ 3,208,531 $ 8,352 $ $ 3,216,883 Communications equipment 3,021,080 3,021,080 Computer hardware and software 3,282,211 49,874 3,332,085 Transponders 4,535,207 327,590 (466,875) 4,395,922 Equipment, furniture and fixtures 156,949 7,323 164,272 Total capital assets, being depreciated 14,203,978 393,139 (466,875) 14,130,242 Beginning Ending Balance Increases Decreases Balance Less accumulated depreciation for: Improvements (1,178,927) (183,524) (1,362,451) Communications equipment (2,824,236) (114,423) (2,938,659) Computer hardware and software (1,902,375) (502,426) (2,404,801) Transponders (3,352,241) (483,596) 466,875 (3,368,962) Equipment, furniture and fixtures (102,009) (16,780) (118,789) Total accumulated depreciation {9,359,788) {1,300,749) 466,875 {10,193,662) Total capital assets, being depreciated, net $ 4,844,190 $ {907,610) $ $ 3,936,580 5. Service Concession Arrangements -Toll Facility Franchise On January 3, 2003, OCTA purchased from the California Private Transportation Company (CPTC) its interest in a Franchise Agreement for a toll facility on a 10-mile segment of the Riverside Freeway /State Route (SR) 91 between the Orange/Riverside County line and the Costa Mesa Freeway /SR-55. The purchase was enabled by State Assembly Bill (AB) 1010 (Correa), passed by the California legislature and signed by the governor in September 2002. The legislation provided the authority for OCT A to collect tolls and pay related financing costs until 22 • • • • • • 91 Express Lanes Fund Notes to the Financial Statements Year Ended June 30, 2013 2030, and eliminated non-compete provisions in the Franchise Agreement for needed improvements on the SR-91. The franchise agreement with the State of California's Department of Transportation (Caltrans) had granted CPTC the right to develop and construct the toll facility and to operate it for 35 years under a lease arrangement. Caltrans retains legal title to the real property components of the toll facility. In September 2008, the Governor of California approved Senate Bill (SB) 1316 (Correa) as an update to the provisions of AB 1010. SB 1316 authorized OCTA to assign its franchise rights, interests and obligations in the Riverside County portion to the Riverside County Transportation Commission (RCTC), thereby allowing RCTC to add two toll lanes and a regular lane in each direction on the SR-91 from the Orange County line to Interstate 15. In addition, the bill authorized the terms of the franchise to expire no later than December 31, 2065. SB 1316 also required OCT A and RCTC to enter into an agreement providing for the coordination of their respective tolling facilities if RCTC was to construct and operate the toll facilities on the Riverside County portion of the SR-91 franchise. In December 2011, the Board approved the assignment of OCT A's franchise rights, interests and obligations in the Riverside County portion of the SR-91 franchise to RCTC. The Board also approved the extension of the expiration date to 2065 and a cooperative agreement between OCT A and RCTC that details the joint operation for the 91 Express Lanes extension. Intangible asset activity for the year ended June 30, 2013 was as follows: Toll facility franchise Less accumulated amortization Total toll facility franchise, net 6. Interest Rate Swap Beginning Balance $ 205,263,668 (66,875,608) $ 138,388,060 Increases Decreases $ $ (2,586,693) $ (2,586,693) $ Ending Balance $ 205,263,668 (69,462,301) $ 135,801,367 As a means of lowering borrowing costs on variable rate debt compared to fixed rate bonds at the time of issuance in November 2003, OCTA entered into two parity interest rate swaps in connection with its $195,265,000 Toll Road Revenue Refunding Bonds. The parity swaps were entered into to effectively change OCTA's variable rate bonds to a synthetically fixed rate of 4.06227%. The Series 2003-B-1 swap was for $75,000,000 and the counterparty was Lehman Brothers Special Funding Incorporated. The Series 2003-B-2 swap was for $25,000,000 and the counterparty was Bear Stearns Capital Markets Incorporated. On May 30, 2008, JP Morgan completed its acquisition of The Bear Stearns Companies Incorporated. As a result of the merger, JP Morgan assumed the $25,000,000 interest rate swap between OCT A and Bear Stearns Capital Markets Incorporated. On March 15, 2011, OCT A terminated the $75,000,000 interest rate swap . 23 91 Express Lanes Fund Notes to the Financial Statements Year Ended June 30, 2013 On January 30, 2013, OCTA terminated the $25,000,000 interest rate swap. The investment gain on the derivative was $1,311,906. 7. Bonds Payable Taxable Senior Secured Bonds On January 3, 2003, as part of the purchase agreement, the 91 Express Lanes Fund assumed $135,000,000 of taxable 7.63% Senior Secured Bonds. On November 12, 2003, the taxable bonds were refunded as noted below. As required by the tax-exempt bond indenture, OCTA paid a $26,428,197 Yield Maintenance Premium in connection with the defeasance of the Senior Secured Bonds, which is deferred and amortized over the life of the Series 2003 tax-exempt bonds on the straight line basis. Toll Road Revenue Refunding Bonds On November 12, 2003, OCTA issued $195,265,000 in Toll Road Revenue Refunding Bonds (91 Express Lanes) Series 2003-A, Series 2003-B-l and Series 2003-B-2 to refund the $135,000,000 taxable 7.63% Senior Secured Bonds and to reimburse OCTA for a portion of its payment of the costs of acquiring the Toll Road and certain other property and interests associated with the Toll Road. The $95,265,000 Series 2003-A Bonds were issued as fixed rate bonds. The $75,000,000 Series 2003-B-1 Bonds and the $25,000,000 Series 2003-B-2 Bonds (collectively the "Series 2003-B Bonds") were issued as adjustable rate bonds. On November 24, 2008, OCTA remarketed the $100,000,000 Series 2003-B Bonds, which were purchased by the Orange County Investment Pool (OCIP). In connection with the mandatory tender of the Series 2003-B Bonds required by the Indenture, the interest rate was converted to a Long Term Interest Rate equal to the OCIP Rate. On December 20, 2010, OCTA entered into a new transaction with OCIP for the Series 2003-B Bonds at a 1.55% rate. The Series 2003-B Bonds have a mandatory tender date of August 15, 2013. On May 13, 2013, the board approved the restructuring of the bonds prior to the mandatory tender date. Refer to note 11. 24 • • • • • • 91 Express Lanes Fund Notes to the Financial Statements Year Ended June 30, 2013 A summary of the terms of the Toll Road Revenue Refunding Bonds is as follows: Issuance date Original issue amount Cash reserve requirements Cash reserve balance Interest rate Maturity Principal payment date Balance as of 06 /30 /13 Unamortized premium Deferred amount on refunding 11/12/03 $195,265,000 $38,019,585 * $39,017,588 1.55% to 5.375% December 2030 August15 $155,460,000 $4,398,429 ($16,106,073) * Pursuant to the 2003 Toll Road Revenue Refunding Bonds Master Indenture of Trust, four reserve funds are maintained with required balances as follows: Reserve Fund $12,634,792; Supplemental Reserve Fund $12,634,793; Major Maintenance Reserve Fund $10,000,000; and Operating Reserve Fund $2,750,000. At June 30, 2013, all reserve requirements have been satisfied . Annual debt service requirements on the tax-exempt bonds as of June 30, 2013, are as follows: YearendingJune30 2014 2015 2016 2017 2018 2019-2023 2024-2028 2029-2031 Total Principal $ 5,525,000 5,815,000 6,130,000 6,460,000 6,800,000 39,525,000 49,660,000 35,545,000 $155,460,000 Interest $ 4,217,356 3,926,588 3,613,031 3,282,544 2,942,969 9,601,792 4,747,650 850,291 $33,182,221 Total $ 9,742,356 9,741,588 9,743,031 9,742,544 9,742,969 49,126,792 54,407,650 36,395,291 $188,642,221 The interest rate used to determine the future annual debt service requirements for the Series 2003-B Bonds was the 1.55% OCIP rate at June 30, 2013. As rates vary, bond interest payments will vary . 25 91 Express Lanes Fund Notes to the Financial Statements Year Ended June 30, 2013 Changes in Long-Term Liabilities Long-term liabilities activity for the year ended June 30, 2013, was as follows: Beginning Ending Due within Balance Additions Reductions Balance One Year Tax-exempt bonds $160,705,000 $ $5,245,000 $155,460,000 $5,525,000 Unamortized premium 4,650,970 252,541 4,398,429 Total long-term liabilities $165,355,970 $ $5,497,541 $159,858,429 $5,525,000 Pledged Revenue The 91 Express Lanes debt issuance outstanding is repaid and secured by the pledging of certain revenues, as defined in the debt agreement. The amount and term of the remainder of this commitment is indicated in the debt service to maturity table. The purpose for which the proceeds of the debt issuance were utilized is disclosed in the debt description. Pursuant to the 2003 Toll Road Revenue Refunding Bonds Master Indenture of Trust, the 91 Express Lanes Fund will covenant to fix and prescribe toll rates for each type of vehicle and each time of day sufficient to produce adjusted net toll revenues for each fiscal year at least equal to 1.3 times annual debt service. Adjusted net toll revenues includes tolls and investment earnings on specified reserve accounts minus operating expenses, excluding depreciation and interest expense. Pledged revenue for the year ended June 30, 2013, was as follows: Description of Pledged Revenue 91 Express Lanes Net Toll Road Revenue Annual Amount of Net Pledged Revenue $26,271,899 8. Transfers to Other OCT A Funds Annual Debt Service Payments $10,225,511 Pledged Revenue Coverage 2.57 For the year ended June 30, 2013, the 91 Express Lanes Fund transferred $1,177 to OCT A's Local Transportation Authority (LTA) Fund for the Riverside Freeway (SR-91) Eastbound Project right- of-way capital expenditures and support services. 9. Commitments and Contingencies Operator Agreement In connection with the purchase of the toll facility interest, OCT A entered into an operating agreement with Cofiroute Global Mobility, subsequently Cofiroute USA, LLC (Cofiroute), to provide operating services in the annual amount of $4,994,000 plus inflation for three initial years 26 • • • • • • 91 Express Lanes Fund Notes to the Financial Statements Year Ended June 30, 2013 with two one-year extension options, subject to Board of Directors approval. The agreement was in effect from January 3, 2003 through January 2, 2006. On January 6, 2006, OCTA entered into a second operating agreement with Cofiroute, effective January 3, 2006 through January 2, 2011. The annual amount of the base contract is $5,448,768 plus inflation adjustments after the first year. The agreement carried two two-year extension options through January 2, 2015. On June 27, 2011, the OCT A Board of Directors approved a subsequent amendment to the operating agreement with Cofiroute, which authorizes the addition of two five-year extension options beginning July 1, 2011 through June 30, 2016 for the first extension term and beginning July 1, 2016 through June 30, 2021 as the second extension term. Cofiroute is responsible for the day-to- day operations of the toll facility. Purchase Commitments The 91 Express Lanes has various outstanding contracts. Total purchase commitments at June 30, 2013 were $34,631,374, the most significant is with Cofiroute as noted above. Lease Commitments The 91 Express Lanes Fund is committed under two non-cancelable leases for office space. These leases are considered for accounting purposes to be operating leases. Lease expenses for the year ended June 30, 2013 were $ 371,783. Future minimum payments for these leases approximate the following: For the year ending June 30: 2014 2015 2016 2017 2018 2019 Total 27 $ $ 317,144 316,198 323,987 332,033 82,280 20,731 1,392,373 91 Express Lanes Fund Notes to the Financial Statements Year Ended June 30, 2013 10. Cumulative Effect of a Change in Accounting Principle During the fiscal year, OCTA implemented GASB 65, Items Previously Reported as Assets and Liabilities. It was determined that debt issuance costs do not meet the definition of an asset or a deferred outflow and should be recognized as an outflow of resources in the reporting period in which they are incurred. The impact of this change in accounting principle was to write off the cost of issuance balance as of July 1, 2012 and to restate the beginning net position by $2,621,329. Also, the implementation of GASB 63, Financial Reporting of Deferred Outflows of Resources, Deferred Inflows of Resources, and Net Position, resulted in the reclassification of deferred refunding charges as explained below: Deferred charge on refunding Unamortized bond issuance cost Tax-exempt bonds Net position unrestricted Net position beginning of the year 11. Subsequent Events $ FY 2012 Previously Presented 2,621,329 143,531,121 39,233,750 63,722,315 $ FY 2012 Restatement Restated 17,173,879 $ 17,173,879 (2,621,329) 17,173,879 160,705,000 (2,621,329) 36,612,421 (2,621,329) 61,100,986 On July 30, 2013, OCT A issued $124,415,000 in Senior Lien Toll Road Revenue Refunding Bonds (91 Express Lanes), Series 2013 to refund the outstanding Toll Road Revenue Refunding Bonds (91 Express Lanes) Series 2003-A, Series 2003-B-1 and Series 2003-B-2. OCTA refunded the outstanding Series 2003-A bonds to reduce its total debt service payments over the life of the bonds and refunded the Series 2003-B-1 and Series 2003-B-2 bonds to address the mandatory tender date of August 15, 2013 for the existing private placement with the Orange County Investment Pool. The Series 2013 Bonds were issued as fixed rate bonds and had a true interest cost of 3.83 percent. The transaction closed on August 8, 2013. 12. Effect of New Pronouncements: GASB Statement No. 66 In March 2012, GASB issued Statement No. 66, Technical Corrections -2012 -an amendment of GASB Statements No. 10 and No. 62. The objective of this statement is to improve accounting and financial reporting for a governmental financial reporting entity by resolving conflicting guidance that resulted from the issuance of two pronouncements, Statements No. 54, Fund Balance Reporting and Governmental Fund Type Definitions and No 62, 28 • • • • • • 91 Express Lanes Fund Notes to the Financial Statements Year Ended June 30, 2013 Codification of Accounting and Financial Reporting Guidance Contained in Pre-November 30, 1989 FASB and AICPA Pronouncements. This statement is effective for OCT A's fiscal year ending June 30, 2014. GASB Statement No. 67 In June 2012, GASB issued Statement No. 67, Financial Reporting for Pension Plans -an amendment of GASB Statement No. 25. The objective of this statement is to improve financial reporting by state and local governmental pension plans. This statement is effective for OCT A's fiscal year ending June 30, 2014. GASB Statement No. 68 In June 2012, GASB issued Statement No. 68, Accounting and Financial Reporting for Pensions -an amendment of GASB Statement No. 27. The primary objective of this Statement is to improve accounting and financial reporting by state and local governments for pensions. It also improves information provided by state and local governmental employers about financial support for pensions that is provided by other entities. This statement is effective for OCTA' s fiscal year ending June 30, 2015 . GASB Statement No. 69 In January 2013, GASB issued Statement No. 69, Government Combinations and Disposals of Government Operations. This Statement establishes accounting and financial reporting standards related· to government combinations and disposals of government operations. As used in this Statement, the term government combinations includes a variety of transactions referred to as mergers, acquisitions, and transfers of operations. This statement is effective for OCT A's fiscal year ending June 30, 2015. GASB Statement No. 70 In April 2013, GASB issued Statement No. 70, Accounting and Financial Reporting for Nonexchange Financial Guarantees. This Statement requires a government that extends a nonexchange financial guarantee to recognize a liability when qualitative factors and historical data, if any, indicate that it is more likely than not that the government will be required to make a payment on the guarantee. Additionally, this Statement requires a government that has issued an obligation guaranteed in a nonexchange transaction to recognize revenue to the extent of the reduction in its guaranteed liabilities. This Statement also requires a government that is required to repay a guarantor for making a payment on a guaranteed obligation or legally assuming the guaranteed obligation to continue to recognize a liability until legally released as an obligor. This statement is effective for OCTA's fiscal year ending June 30, 2014 . 29 • SUPPLEMENTAL • INFORMATION • PROJECT COST: $180 million (estimated) FINANCING: Tolls will be used as the primary funding source for the project. TOLLING: The connector bridge will be a tolled facility that will utilize variable pricing to manage traffic volumes to balance additional traffic from the connector with the eastbound traffic traveling on the 91 Express Lanes . •-Fact Sheet as of 10/28/13 m • T.ran.!:pOrlltlion Cortl dor A.,,,ndH' PROJECT DESCRIPTION A new single-lane, bi-directional, bridge will be built that will provide a direct connection from northbound 241 Toll Road to the center median of the eastbound 91 Express Lanes and from the westbound 91 Express Lane,s to the southbound 241 Toll Road . The project ties into the westernmost limits of the Riverside County Transportation Commission's 91 Corridor Improvement Project, which will extend the 91 Express Lanes east to 1-15. PROJECT BENEFITS Enhances overall regional connectivity I improves operations • Direct toll-to-toll connection between the SR-241 and 91 Express Lanes • Reduces current and projected congestion along portions of SR-91 and SR-55 by providing an alternative travel route in northeast Orange County • Provides an additional access point to 91 Express Lanes • Reduces weaving movement from outside general purpose connector to inside 91 Express Lanes • Reduce the queues on SR-241 general purpose connector (potential to ease traffic congestion including peak evening traffic at the Windy Ridge northeast connector) PROJECT LANE DIAGRAM The connection between the SR-241 and the 91 Express Lanes will carry northbound SR-241 traffic to the eastbound SR-91 Express Lanes and carry westbound 91 Express Lanes traffic to the southbound SR-241. Outside widening would be required mainly on the south side of the SR-91 for realignment of eastbound lanes up to the Coal Canyon Wild Life Corridor Crossing. PROJECT HISTORY Direct connector ramps between the 241 Toll Road and 91 Express Lanes were originally included in the ultimate plans for the 241 Toll Road as High Occupancy Vehicle (HOV) direct connection ramps to the planned HOV lanes in the median of SR-91. The original HOV lane concept was converted to the 91 Express Lanes , which opened to traffic in 1995. The C<:i Can~l'I WLC' I I re-s~ !t'K>'...n WIDll n E.~~5 ll1e5 by rM<tr ng I Pro c ! PROJECT HISTORY Tl MELINE 1994 Ultimate Buildout Concept 1995 91 Express Lanes Open 1999 SR-241 Toll Road Opens 2002 TCA Feasibility Study 2003 OCTA purchases 91 Express Lanes tOIJ I Tl8' 2006 Riverside-Orange County Major Investment Study 2008 OCTA Feasibility Study 2011 Project Study Report I Project Report Kickoff, Traffic and Revenue Study Complete • 241 Toll Road connection to the 91 Freeway opened in 1999. Feasibility studies were conducted by the TCA in 2002 and by OCTA in 2008 to identify conceptual alternatives for the fina l design of direct connector ramps to the 91 Express Lanes. In 2011, OCTA completed a Grade 2 Traffic and Revenue Study for the 241 I 91 Direct Connector Project. 2012 Project Study Report I Project Development Approval 2013 Project Approval I Environmental Documentation Phase NEXT STEPS • The project report and environmental document is anticipated to be completed by mid 2015. • Subject to approval, design and construction would begin in mid 2015. • Construction is targeted for opening concurrent with the RCTC SR-91 Corridor Improvement Project (mid 2017). PROJECT PARTNERS Orange County Transportation Authority, Transportation Corridor Agencies , and the California Department of Transportation's District 8 and 12. m OCTA • • • PowerPoint Presentation ~ CJ.) E 0 ~ ®Vt (J) ! :::3 .~ i () u t::: i === 0 Ch -=t ~ 0 a i ~ '-... Cl) t: '2 Q) 8 .~ Ill .......... t::: .... CJ.) ....... >~ a ~ E 0 ~ ~ 0 r: e ~ ~ () .-.c Q.. 0 I-~ Cl) I t::: 0 < • Transportation Corridor Agencies (TCA) operates Orange County's 51-mile Toll Road network (SRs 73, 133, 241, 261) • TCA's toll roads were the first in California and the first to offer electronic toll collection -FasTrak® • 250,000 transactions every week day • 81 percent of customers pay with FasTrak • 16 percent pay with cash ·~ • Toll Road benefits include time savings, predictability and less stress • • .1 ..c en ro (.) .... en c.. :J ..;....; 0 c s..... ro C) ;: en >. :J Q) (.) ..c ,p +-' -0~ c ro ro en en en >. !...... Q) Q) C: E :J .8 en en c :J -(.) • c 0 Cl) (.) c Cl) ·c Cl) c. >< Cl) Q) e ~ (/) (/) e ,...... en (/) -c ro 0 0 0::: ~ (/) = I Q c: l-o Cl) c: ..c ro I- I N • No stopping at toll plazas • No searching or fumbling for exact change • No fear • No transponder needed • No need to pre-pay tolls • No monthly account fee • • .3 ESSACCOUNT™ • Express Accounts will be available for customer sign ups in January 2014 • Express Accounts can only be used on the 73, 133, 241 and 261 Toll Roads • Cash collection will be removed mid-2014 4 • la ... s Cl) (I) 'ti "CJ ftS 9 c a: Cl) a: 0 ~ c a. ~ Cl) z (/.) e c:n E: :z: c c c t! Cl)-Cl)-u (.) (.) Ill .... ·-::l ... ..... • • •Go to www.thetollroads.com or The Toll Roads mobile app •Must pay within 48 hours • The Golden Gate Bridge • experience 6 • ®customers -No Changes, No Worries FasTrak accounts = lowest tolls FasTrak can be used ......_ ')~)/,, dtfvh -/..._2~ -~ ,, ._ L ......,, Ser befor~ <lttvirog ~ Ji1Sr/l4k•• I I' ----1-·-·-j ···~· I San Diego County $0 monthly fee if you spend more than $25/month • • • 7