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12 December 16, 2011 SR-91 Advisory
AGENDA State Route 91 Advisory Committee Meeting Page 1 of 4 Committee Members Karen Spiegel, RCTC, Committee Chair Bill Campbell, OCTA, Committee Vice Chair Jerry Amante, OCTA Bob Buster, RCTC Carolyn V. Cavecche, OCTA Lorri Galloway, OCTA Berwin Hanna, RCTC Bob Magee, RCTC Shawn Nelson, OCTA John Tavaglione, RCTC Ed Graham, SANBAG, Ex-Officio Cindy Quon, Caltrans Dist. 12, Ex-Officio Ray W. Wolfe, Caltrans Dist. 8, Ex-Officio Ron Roberts, RCTC, Alternate Orange County Transportation Authority Headquarters 600 South Main Street First Floor - Board Room Orange, California Friday, December 16, 2011, 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 Roberts 1. Public Comments Special Calendar There are no Special Calendar matters. AGENDA State Route 91 Advisory Committee Meeting Page 2 of 4 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 5, 2011, State Route 91 Advisory Committee meeting. 3. 91 Express Lanes Monthly Status Reports Kirk Avila, General Manager of 91 Express Lanes, Orange County Transportation Authority Overview The 91 Express Lanes status reports for the months of July 2011 through October 2011 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 2011 through October 2011. 4. Fiscal Year 2010-11 91 Express Lanes Annual Financial Statements Kirk Avila, General Manager of 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 2010-11 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 2010 -11 91 Express Lanes Annual Financial Statement. AGENDA State Route 91 Advisory Committee Meeting Page 3 of 4 Regular Calendar 5. 91 Express Lanes 2011 Customer Satisfaction Survey Results Stella Lin, Manager of Marketing, Orange County Transportation Authority Overview The Orange County Transportation Authority periodically conducts surveys of 91 Express Lanes toll road users to provide an understanding of customers’ satisfaction, priorities, concerns and experiences as they pertain to Orange County Transportation Authority and the 91 Express Lanes. This report summarizes the results of the 91 Express Lanes 2011 Customer Satisfaction Survey. Recommendation Receive and file as an information item. Discussion Items 6. State Route 91 Corridor Projects - State Route 55 to State Route 241 Construction Update Pradeep Gunaratne, Program Manager, Orange County Transportation Authority Staff will present on the State Route 91 Corridor Projects to give an update on the State Route 55 to State Route 241 construction. 7. Update on the 91 Express Lanes Extension Agreements Kirk Avila, General Manager of 91 Express Lanes, Orange County Transportation Authority Staff will update Committee members on the status of the Cooperative Agreement for State Route 91 Express Lanes between Orange County Transportation Authority and Riverside County Transportation Commission, and the Amendments to Amended and Restated Development Franchise Agreement and Lease Agreement with the State of California. AGENDA State Route 91 Advisory Committee Meeting Page 4 of 4 8. General Manager’s Report 9. Committee Members' Reports 10. Adjournment The next regularly scheduled meeting of this Committee is to be determined and will take place in Corona, California. MINUTES State Route 91 Advisory Committee Meeting August 5, 2011 Page 1 of 8 Committee Members Present Karen Spiegel, RCTC, Committee Chair Bill Campbell, OCTA, Committee Vice Chair Bob Buster, RCTC Carolyn V. Cavecche, OCTA Lorri Galloway, OCTA Berwin Hanna, RCTC Bob Magee, RCTC Cindy Quon, Caltrans Dist. 12, Ex-Officio John Tavaglione, RCTC Ray W. Wolfe, Caltrans Dist. 8, Ex-Officio Staff Present Anne Mayer, RCTC, Executive Director Will Kempton, 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 Steve DeBaun, RCTC, Legal Counsel Kennard R. Smart, Jr., OCTA, General Counsel OCTA and RCTC staff and General Public Committee Members Absent Jerry Amante, OCTA Ed Graham, SANBAG, Ex-Officio Shawn Nelson, OCTA Ron Roberts, RCTC, Alternate Call to Order The August 5, 2011, regular meeting of the State Route 91 Advisory Committee was called to order by Committee Chair Spiegel at 9:00 a.m. at the City of Corona – City Hall, Council Chambers – First Floor, 400 South Vicentia Avenue, Corona, California. Pledge of Allegiance Member Magee led in the Pledge of Allegiance. 1. Public Comments No public comments were received. Special Calendar There were no Special Calendar matters. MINUTES State Route 91 Advisory Committee Meeting August 5, 2011 Page 2 of 8 Consent Calendar (Items 2 through 4) 2. Approval of Minutes A motion was made by Member Hanna, seconded by Member Cavecche, and declared passed by those present, to approve minutes of the June 3, 2011, meeting. 3. 91 Express Lanes Monthly Status Reports A motion was made by Member Hanna, seconded by Member Cavecche, and declared passed by those present, to receive and file the 91 Express Lanes Monthly Status Reports for the months of May 2011 and June 2011. 4. Amendment to Agreement with Cofiroute USA Committee Vice Chair Campbell pulled this item and commented that Cofiroute did deliver the new back-office software system, yet, there are still issues. He asked staff to provide the Committee with an update. Ken Phipps, Executive Director of Finance and Administration, Orange County Transportation Authority (OCTA), responded that the focus has been on the inoperability agreement and working with the Transportation Corridor Agency (TCA) to ensure that all transactions are captured, coded, and charges are appropriate. Staff met with Committee Vice Chair Campbell; and at his request, conducted daily conference call meetings between Cofiroute, OCTA, and TCA to address the software issues. Fifteen issues have been documented and resolved, and there is continued verification that the fixes did not cause other problems. In addition, there is a different concern being addressed regarding the customer interface on the internet. Committee Vice Chair Campbell commented that when there were comparisons of the new versus old software, it was discovered that the prior software had small errors, which has since been corrected in the new software. A motion was made by Committee Vice Chair Campbell, seconded by Member Galloway, and declared passed by those present, to receive and file. MINUTES State Route 91 Advisory Committee Meeting August 5, 2011 Page 3 of 8 Regular Calendar 5. Revised Project Allocation Recommendation for Federal Grant Funds Available for Use in the State Route 91 Corridor Kia Mortazavi, Executive Director of Planning, OCTA, reported that $2.45 million remain from the $15.8 million federal grant funds allocated to study a possible new corridor between Orange and Riverside counties. In order to obligate the funds quickly, staff recommend ed the $2.45 million federal grant funds be directed to the State Route (SR) 91/71 Connector Project instead of the SR-241/91 Express Lanes Connector Project. Riverside County Transportation Commission (RCTC) would agree to program $2.45 million in federal formula funds for the SR-241/91 Express Lanes Connector Project. A motion was made by Committee Vice Chair Campbell, seconded by Member Cavecche, and declared passed by those present, to: A. Approve programming an additional $2.45 million in Safe, Accountable, Flexible, Efficient Transportation Equity Act: A Legacy for Users federal funds on the State Route 91/State Route 71 Connector Project. B. Approve programming $2.45 million in Riverside County Transportation Commission federal formula funds for the State Route 241/91 Express Lanes Connector Project. Discussion Items 6. The Toll Roads Marketing Update Sheldon Pines, Public Affairs Specialist, TCA, introduced Tom Margro, Chief Executive Officer, and Lisa Telles, Chief Communications Officer, of TCA. Mr. Pines presented TCA’s marketing plan philosophy, geo-targeted online marketing, health club signage, radio ad lets, promotions to increase FasTrak signups, programs to reward usage, and showed a few TCA television commercials. Committee Vice Chair Campbell inquired about TCA’s annual marketing budget and how much of it is spent in Riverside County. Mr. Pines responded that the budget is about $1.2 million, along with some radio ad lets and online marketing that is spent in Riverside County. MINUTES State Route 91 Advisory Committee Meeting August 5, 2011 Page 4 of 8 6. (Continued) Committee Vice Chair Campbell commented that the 91 Express Lanes toll revenues are down and feels that it is appropriate to review marketing in Riverside County. Member Cavecche inquired if TCA advertises on Facebook or other social media. Mr. Pines responded that there is a presence and TCA has not purchased advertising on Facebook; however, for the next marketing plan, there will be review of using Facebook for TCA advertisements. Committee Chair Spiegel concurred with Committee Vice Chair Campbell’s comment about reviewing marketing for the toll road in Riverside County. 7. Riverside County Transportation Commission and Orange County Transportation Authority Cooperative Agreement Update Michael Blomquist, Toll Program Director, RCTC, presented an update on the RCTC/OCTA cooperative agreement for the 91 Express Lanes extension. There was additional discussion and comments regarding the cooperative agreement as follows: Member Buster inquired if there is a minimal standard for the level of maintenance on the express lanes. Mr. Blomquist responded that there will be a long-term pavement maintenance rehab schedule which also adheres to Caltrans’ maintenance requirements. In addition, each county is responsible for their own maintenance. Member Buster commented that the express lanes pavement needs to have a common level of maintenance and cleanliness in both Orange and Riverside counties. Member Buster inquired about the agreement’s dispute resolution. There was a response as follows: o Steven DeBaun, General Counsel, RCTC, commented that the agreement has progressive levels for dispute resolution between OCTA/RCTC, and the concept is to avoid legal action. o Anne Mayer, Executive Director, RCTC, commented that the agreement has a specific process to resolve disputes at the lowest level possible. MINUTES State Route 91 Advisory Committee Meeting August 5, 2011 Page 5 of 8 7. (Continued) Member Buster commented that since both agencies would be involved in the extension of the express lanes, staff should consider a potential new logo/signage for the express lanes. Committee Vice Chair Campbell requested that the cooperative agreement update be presented to OCTA’s Finance and Administration Committee and full Board. Committee Vice Chair Campbell commented: o Need to ensure that the bond requirements are met for OCTA and part of the ability to transfer to franchise. o What happens if the debt is reissued and yet there is contemplation of refunding the debt in 2013. o A toll policy conflict could result if one agency charges by day of week and the other agency charges by time of day. o Have the traffic and revenue consultant determine the toll structure that maximizes revenues for both the individual express lane segments and for the entire system. o Need additional information regarding the transition lane at the County line area. If there were further widening of the SR -91, what are the additional costs for returning back to the standard lanes width instead of the 11-foot lanes. o What is contemplated for the environmental mitigation in Orange County. o Is there a way to calculate the night closures fee and bring forward the data prior to the final agreement. o What is the impact on the SR-241/91 connector. o How do you optimize the throughput by working the tolls together and yet maintain the independence. o Concerned about termination in ten years and the outstanding OCTA debt that matures in 2030. The agreement needs to be tied to the term of the debt in order to protect the bond holders. The agreement and debt obligation need to be consistent. MINUTES State Route 91 Advisory Committee Meeting August 5, 2011 Page 6 of 8 7. (Continued) Mr. Blomquist, RCTC, commented: o There will be language to address the toll policy and both agencies would operate on a variable congestion pricing hourly toll. o The transition lane at the county line will be in each direction and about 8,000 feet long. o The environmental mitigation approach is to mitigate for the “ultimate project” up front, which includes the additional general purpose lane between SR-71 and SR-241, and could provide cost savings versus revisiting the mitigation. o The environmental mitigation impacts in Orange County are not extensive and where explained. Kirk Avila, General Manager of the 91 Express Lanes, OCTA, reported: o Stantec will provide an update on the traffic and revenue study, which would address the toll road extension impacts on OCTA’s 91 Express Lanes. o There are designated closure hours, which have been calculated as to how much OCTA would receive in compensation for the closures. Member Buster commented that there needs to be a review of RCTC’s finance requirements as they engage in their construct ion improvement projects and toll road. Need to ensure that the bond requirements are met and congruent between RCTC and OCTA. Will Kempton, Chief Executive Officer, OCTA, commented: o The agreement and this Committee’s concerns would be presented to OCTA’s Finance and Administration Committee and full Board. o OCTA and RCTC still need to come to agreement on a couple of items prior to bringing the agreement forward to OCTA’s Board for final approval. RCTC’s Board has already agreed to the agreement in concept. Member Cavecche commented: o The toll policies between the two agencies should be the same and addressed in the agreement. o There should not be a competition between the two agencies and the policy should be setup by a formula basis. o Requested the transition area design at the county line. o Concern about the mechanism for getting to the toll formula. MINUTES State Route 91 Advisory Committee Meeting August 5, 2011 Page 7 of 8 7. (Continued) Committee Vice Chair Campbell expressed concerned about the toll policy congestion management language in the agreement and how future technology could be different from how it is used today. Member Magee commented: o Concurred with Committee Vice Chair Campbell that the agreement needs to be tied to the term of the debt in order to protect the bond holders and to also maintain consistency. o The agreement and debt obligation need to be consistent. Member Buster commented: o Each agency has to be responsible for their own toll rates. o If express lane users could get on/off between the counties, there could be two separate segments with different levels of congestion usage. o Even with the same toll formula for congestion management, there could be different toll rates per mile at the same time of the day. o In order to extend the major vendors, there would have to be negotiations. 8. General Manager’s Report Kirk Avila, General Manager of the 91 Express Lanes, reported: OCTA will conduct a 91 Express Lanes customer satisfaction survey next month. The draft questionnaire will be presented to OCTA’s Legislative and Communications Committee on August 18 and will be emailed to this Committee. The survey results will be presented at this Committee’s December 16th meeting. SR-91 widening project from the SR-241 to SR-55 work will begin late August, and the 91 Express Lanes electronic toll, traffic, and management system will be relocated. OCTA, in conjunction with their consultant, is assessing the 91 Express Lanes pavement conditions, and the final report will be issued in a few months. MINUTES State Route 91 Advisory Committee Meeting August 5, 2011 Page 8 of 8 9. Committee Members’ Reports There were no Committee Members' reports. 10. Adjournment The meeting adjourned at 10:25 a.m. The next regularly scheduled meeting of this Committee will be held at 9:00 a.m. on Friday, December 16, 2011, at the OCTA Headquarters, Board Room - First Floor, 600 South Main Street, Orange, California. ATTEST Laurena Weinert OCTA Assistant Clerk of the Board Karen Spiegel Committee Chair ORANGE COUNTY TRANSPORTATION AUTHORITY 91 Express Lanes Monthly Status Reports Staff Report Orange County Transportation Authority 550 South Main Street / P.O. Box 14184 / Orange / California 92863-1584 / (714) 560-OCTA (6282) December 16, 2011 To: State Route 91 Advisory Committee From: Kirk Avila, General Manager, 91 Express Lanes Subject: 91 Express Lanes Monthly Status Reports Overview The 91 Express Lanes status reports for the months of July 2011 through October 2011 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 2011 through October 2011. 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 2011 status report for the 91 Express Lanes is provided in Attachment A. In July 2011, traffic volume in the 91 Express Lanes decreased 9.1 percent over the same period in 2010 and gross potential toll revenue decreased by 13.7 percent as compared to the prior year. The August 2011 status report is provided in Attachment B. In August 2011, traffic volume decreased by 3.5 percent over the same period in 2010 with gross potential toll revenue decreasing by 5.8 percent. The September 2011 status report for the 91 Express Lanes is provided in Attachment C. As compared to the same period last year, in September 2011 traffic volume and gross potential toll revenue decreased by 5.5 percent and 8.2 percent, respectively. 91 Express Lanes Monthly Status Reports Page 2 The October 2011 status report for the 91 Express Lanes is provided in Attachment D. In October 2011, traffic volume in the 91 Express Lanes decreased 4.8 percent over the same period in 2010 and gross potential toll revenue decreased by 9.7 percent as compared to the prior year. Fiscal year 2011-12 year-to-date (YTD) traffic volume and toll revenue as of the end of October 2011 were down, with YTD traffic volume decreasing by 5.7 percent and YTD potential toll revenue down by 9.3 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 status report for the months of July 2011 through October 2011 are provided for review. The report highlights operational and financial activities. Attachments A. 91 Express Lanes Status Report – As of July 31, 2011 B. 91 Express Lanes Status Report – As of August 31, 2011 C. 91 Express Lanes Status Report – As of September 30, 2011 D. 91 Express Lanes Status Report – As of October 31, 2011 ORANGE COUNTY TRANSPORTATION AUTHORITY 91 Express Lanes Monthly Status Reports Attachment A ATTACHMENT A Orange County Transportation Authority SSttaattuuss RReeppoorrtt JJuullyy 22001111 As of July 31, 2011 2 . . . . . . . . . Operations Overview Traffic and Revenue Statistics Total traffic volume on the 91 Express Lanes for July 2011 was 996,017. This represents a daily average of 32,130. This is a 9.1% decrease in total traffic volume from the same period last year when traffic levels totaled 1,095,330. Potential toll revenue for the month was $2,717,114 which represents a decrease of 13.7% from the prior year’s total of $3,148,243. Carpool percentage for the month was 27.3% as compared to the previous year’s rate of 26.2%. 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 2011. Current Month-to-Date (MTD) as of July 31, 2011 (Fiscal Year (FY) 2011-12 data is for the corresponding month in that fiscal year) Trips July 11 MTD Actual July 10 MTD Actual Yr-to-Yr % Variance Full Toll Lanes 724,485 808,137 (10.4%) 3+ Lanes 271,532 287,193 (5.5%) Total Gross Trips 996,017 1,095,330 (9.1%) Revenue Full Toll Lanes $2,641,137 $3,054,393 (13.5%) 3+ Lanes $75,977 $93,850 (19.0%) Total Gross Revenue $2,717,114 $3,148,243 (13.7%) Average Revenue Per Trip Average Full Toll Lanes $3.65 $3.78 (3.4%) Average 3+ Lanes $0.28 $0.33 (15.2%) Average Revenue Per Trip $2.73 $2.87 (4.9%) 3 . . . . . . . . . Traffic and Revenue Summary The chart below reflects the total trips breakdown between Full Toll trips and HOV3+ trips for FY 2011-12 on a monthly basis. 724,485 271,532 175,000 350,000 525,000 700,000 875,000 1,050,000 1,225,000 1,400,000 Jul -11 Aug -11 Sep -11 Oct-11 Nov -11 Dec-11 Jan -12 Feb-12 Mar-12 Apr-12 May-12 Jun -12 Vo l u m e Month FY 2011-12 Traffic Volume Overview 3+ Lanes Full Toll Lanes The chart below reflects the gross potential revenue breakdown between Full Toll trips and HOV3+ trips for FY 2011-12 on a monthly basis. 2,641,137 75,977 $2,500,000 $2,550,000 $2,600,000 $2,650,000 $2,700,000 $2,750,000 Jul -11 Aug -11 Sep -11 Oct-11 Nov-11 Dec-11 Jan -12 Feb-12 Mar-12 Apr-12 May -12 Jun -12 Re v e n u e Month FY 2011-12 Revenue Summary Full Toll Lanes 3+ Lanes 4 . . . . . . . . . None of the peak traffic hour in the eastbound direction reached or exceeded 90% or more of defined capacity during the month of July 2011. As demonstrated on the next chart, westbound peak hour traffic volumes top out at 63% of defined capacity. EASTBOUND PEAK-HOUR VOLUMES PM Time Price HOV Vol. Cap.Price HOV Vol. Cap.Price HOV Vol. Cap.Price HOV Vol. Cap.Price HOV Vol. Cap. 1400 - 1500 $3.10 480 2,451 72% 1500 - 1600 $9.75 536 2,336 69% 1600 - 1700 $8.85 476 2,137 63% 1700 - 1800 $7.50 443 1,859 55% 1800 - 1900 $5.35 431 1,577 46% 1900 - 2000 $5.00 336 1,181 35% PM Time Price HOV Vol. Cap.Price HOV Vol. Cap.Price HOV Vol. Cap.Price HOV Vol. Cap.Price HOV Vol. Cap. 1400 - 1500 $3.45 172 481 14%$4.15 299 1,753 52%$4.15 313 1,652 49%$4.25 333 1,887 56%$3.10 450 2,503 74% 1500 - 1600 $3.45 186 448 13%$3.70 485 2,216 65%$3.95 563 2,530 74%$5.45 581 2,873 85%$9.75 613 2,698 79% 1600 - 1700 $3.45 169 440 13%$7.30 487 2,378 70%$7.80 543 2,601 77%$9.45 538 2,732 80%$8.85 493 2,531 74% 1700 - 1800 $3.45 170 408 12%$6.75 439 2,183 64%$8.00 484 2,313 68%$9.30 503 2,697 79%$7.50 487 2,485 73% 1800 - 1900 $3.45 217 468 14%$3.60 469 1,898 56%$3.60 484 2,269 67%$4.40 514 2,666 78%$5.35 460 2,051 60% 1900 - 2000 $3.45 201 448 13%$3.15 282 1,038 31%$3.15 328 1,327 39%$4.55 425 1,863 55%$5.00 390 1,466 43% PM Time Price HOV Vol. Cap.Price HOV Vol. Cap.Price HOV Vol. Cap.Price HOV Vol. Cap.Price HOV Vol. Cap. 1400 - 1500 $4.15 308 1,490 44%$4.15 325 1,565 46%$4.15 303 1,662 49%$4.25 336 1,816 53%$3.10 435 2,524 74% 1500 - 1600 $4.45 525 2,328 68%$3.70 537 2,531 74%$3.95 544 2,650 78%$5.45 550 2,560 75%$9.75 575 2,611 77% 1600 - 1700 $5.05 460 2,276 67%$7.30 478 2,554 75%$7.80 528 2,630 77%$9.45 551 2,601 77%$8.85 514 2,627 77% 1700 - 1800 $4.85 470 2,385 70%$6.75 466 2,547 75%$8.00 474 2,487 73%$9.30 464 2,427 71%$7.50 509 2,560 75% 1800 - 1900 $4.45 435 1,969 58%$3.60 506 2,346 69%$3.60 555 2,427 71%$4.40 477 2,374 70%$5.35 470 2,169 64% 1900 - 2000 $3.15 270 1,074 32%$3.15 328 1,356 40%$3.15 312 1,359 40%$4.55 367 1,557 46%$5.00 407 1,541 45% PM Time Price HOV Vol. Cap.Price HOV Vol. Cap.Price HOV Vol. Cap.Price HOV Vol. Cap.Price HOV Vol. Cap. 1400 - 1500 $4.15 275 1,405 41%$4.15 292 1,593 47%$4.15 310 1,602 47%$4.25 325 1,756 52%$3.10 413 2,491 73% 1500 - 1600 $4.45 494 2,316 68%$3.70 521 2,367 70%$3.95 556 2,565 75%$5.45 585 2,638 78%$9.75 540 2,518 74% 1600 - 1700 $5.05 494 2,372 70%$7.30 534 2,537 75%$7.80 534 2,571 76%$9.45 537 2,422 71%$8.85 486 2,491 73% 1700 - 1800 $4.85 413 2,304 68%$6.75 487 2,496 73%$8.00 491 2,461 72%$9.30 550 2,678 79%$7.50 513 2,651 78% 1800 - 1900 $4.45 457 1,970 58%$3.60 468 2,119 62%$3.60 490 2,245 66%$4.40 582 2,592 76%$5.35 503 2,245 66% 1900 - 2000 $3.15 279 1,096 32%$3.15 347 1,355 40%$3.15 359 1,430 42%$4.55 417 1,765 52%$5.00 429 1,531 45% PM Time Price HOV Vol. Cap.Price HOV Vol. Cap.Price HOV Vol. Cap.Price HOV Vol. Cap.Price HOV Vol. Cap. 1400 - 1500 $4.15 300 1,495 44%$4.15 307 1,584 47%$4.15 290 1,660 49%$4.25 361 1,999 59%$3.10 468 2,642 78% 1500 - 1600 $4.45 538 2,364 70%$3.70 536 2,483 73%$3.95 510 2,560 75%$5.45 572 2,710 80%$9.75 550 2,641 78% 1600 - 1700 $5.05 464 2,270 67%$7.30 506 2,552 75%$7.80 564 2,753 81%$9.45 523 2,621 77%$8.85 507 2,669 79% 1700 - 1800 $4.85 142 804 24%$6.75 454 2,510 74%$8.00 539 2,647 78%$9.30 535 2,526 74%$7.50 516 2,475 73% 1800 - 1900 $4.45 554 2,930 86%$3.60 513 2,269 67%$3.60 491 2,433 72%$4.40 516 2,396 70%$5.35 522 2,106 62% 1900 - 2000 $3.15 279 1,159 34%$3.15 354 1,482 44%$3.15 368 1,594 47%$4.55 424 1,580 46%$5.00 370 1,406 41% 07/20/11 07/21/11 Friday Monday Tuesday Wednesday Thursday Monday Tuesday Wednesday Thursday 07/22/1107/18/11 07/19/11 07/15/1107/11/11 07/12/11 07/13/11 07/14/11 Friday 07/06/11 07/07/11 FridayMonday Tuesday Wednesday Thursday 07/08/1107/04/11 07/05/11 Monday Tuesday Wednesday Thursday 07/01/1106/27/11 06/28/11 06/29/11 06/30/11 Friday Wednesday 07/27/11 Thursday 07/28/11Monday 07/25/11 Tuesday 07/26/11 Friday 07/29/11 5 . . . . . . . . . WESTBOUND PEAK-HOUR VOLUMES AM Time Price HOV Vol. Cap.Price HOV Vol. Cap.Price HOV Vol. Cap.Price HOV Vol. Cap.Price HOV Vol. Cap. 0400 - 0500 $2.45 203 465 14% 0500 - 0600 $3.85 434 1,403 41% 0600 - 0700 $4.00 394 1,522 45% 0700 - 0800 $4.45 407 1,407 41% 0800 - 0900 $4.00 275 1,177 35% 0900 - 1000 $3.30 288 1,097 32% AM Time Price HOV Vol. Cap.Price HOV Vol. Cap.Price HOV Vol. Cap.Price HOV Vol. Cap.Price HOV Vol. Cap. 0400 - 0500 $1.30 18 43 1%$2.45 197 534 16%$2.45 232 539 16%$2.45 229 555 16%$2.45 205 509 15% 0500 - 0600 $1.30 39 72 2%$4.00 442 1,653 49%$4.00 492 1,635 48%$4.00 479 1,627 48%$3.85 452 1,577 46% 0600 - 0700 $1.30 39 109 3%$4.15 433 2,025 60%$4.15 515 2,102 62%$4.15 530 2,118 62%$4.00 432 1,778 52% 0700 - 0800 $1.30 81 192 6%$4.60 374 1,674 49%$4.60 375 1,879 55%$4.60 420 1,986 58%$4.45 389 1,696 50% 0800 - 0900 $2.10 147 326 10%$4.15 233 1,311 39%$4.15 291 1,710 50%$4.15 293 1,545 45%$4.00 258 1,332 39% 0900 - 1000 $3.45 182 446 13%$3.30 236 1,146 34%$3.30 309 1,300 38%$3.30 289 1,284 38%$3.30 291 1,205 35% AM Time Price HOV Vol. Cap.Price HOV Vol. Cap.Price HOV Vol. Cap.Price HOV Vol. Cap.Price HOV Vol. Cap. 0400 - 0500 $2.45 229 595 18%$2.45 250 571 17%$2.45 276 618 18%$2.45 260 588 17%$2.45 221 477 14% 0500 - 0600 $4.00 493 1,711 50%$4.00 509 1,646 48%$4.00 517 1,738 51%$4.00 489 1,668 49%$3.85 448 1,519 45% 0600 - 0700 $4.15 470 2,039 60%$4.15 476 1,962 58%$4.15 522 2,116 62%$4.15 510 2,092 62%$4.00 421 1,748 51% 0700 - 0800 $4.60 379 1,963 58%$4.60 397 1,934 57%$4.60 407 2,033 60%$4.60 435 2,025 60%$4.45 356 1,455 43% 0800 - 0900 $4.15 277 1,571 46%$4.15 250 1,451 43%$4.15 282 1,388 41%$4.15 283 1,428 42%$4.00 250 1,191 35% 0900 - 1000 $3.30 218 1,105 33%$3.30 233 1,155 34%$3.30 249 1,194 35%$3.30 236 1,258 37%$3.30 237 1,083 32% AM Time Price HOV Vol. Cap.Price HOV Vol. Cap.Price HOV Vol. Cap.Price HOV Vol. Cap.Price HOV Vol. Cap. 0400 - 0500 $2.45 226 586 17%$2.45 263 582 17%$2.45 273 580 17%$2.45 246 551 16%$2.45 214 512 15% 0500 - 0600 $4.00 443 1,448 43%$4.00 511 1,699 50%$4.00 475 1,587 47%$4.00 482 1,614 47%$3.85 424 1,458 43% 0600 - 0700 $4.15 458 2,003 59%$4.15 447 1,961 58%$4.15 464 1,889 56%$4.15 497 2,135 63%$4.00 427 1,720 51% 0700 - 0800 $4.60 392 1,883 55%$4.60 411 1,940 57%$4.60 402 1,941 57%$4.60 385 1,985 58%$4.45 377 1,539 45% 0800 - 0900 $4.15 250 1,661 49%$4.15 278 1,793 53%$4.15 290 1,627 48%$4.15 270 1,554 46%$4.00 232 1,197 35% 0900 - 1000 $3.30 278 1,537 45%$3.30 311 1,631 48%$3.30 293 1,516 45%$3.30 289 1,309 39%$3.30 271 1,142 34% AM Time Price HOV Vol. Cap.Price HOV Vol. Cap.Price HOV Vol. Cap.Price HOV Vol. Cap.Price HOV Vol. Cap. 0400 - 0500 $2.45 241 605 18%$2.45 249 560 16%$2.45 251 624 18%$2.45 243 546 16%$2.45 214 494 15% 0500 - 0600 $4.00 487 1,699 50%$4.00 517 1,660 49%$4.00 505 1,659 49%$4.00 481 1,711 50%$3.85 444 1,494 44% 0600 - 0700 $4.15 455 2,043 60%$4.15 489 2,059 61%$4.15 490 2,046 60%$4.15 506 2,065 61%$4.00 417 1,763 52% 0700 - 0800 $4.60 368 1,851 54%$4.60 375 1,979 58%$4.60 402 2,007 59%$4.60 404 1,999 59%$4.45 376 1,518 45% 0800 - 0900 $4.15 247 1,667 49%$4.15 272 1,662 49%$4.15 266 1,399 41%$4.15 282 1,547 46%$4.00 291 1,364 40% 0900 - 1000 $3.30 256 1,305 38%$3.30 282 1,461 43%$3.30 262 1,251 37%$3.30 284 1,306 38%$3.30 280 1,197 35% 07/14/11 07/21/11Monday Tuesday Wednesday Thursday 07/18/11 07/19/11 07/20/11 Monday Tuesday Wednesday Thursday07/11/11 07/12/11 07/13/11 07/07/11 07/01/1106/30/11 Monday Tuesday Wednesday Thursday07/04/11 07/05/11 07/06/11 Monday Tuesday Wednesday Thursday06/27/11 06/28/11 06/29/11 07/15/11 Monday 07/25/11 Tuesday 07/26/11 Wednesday 07/27/11 Thursday 07/28/11 Friday Friday 07/29/11 Friday 07/08/11Friday 07/22/11Friday 6 . . . . . . . . . Transponder Distribution Status Tags % of Total Tags % of Total Issued To New Accounts 580 35.8%625 32.2%565 30.1% Additional Tags to Existing Accounts 363 22.4%392 20.2%307 16.3% Replacement Transponders 675 41.7%926 47.7%1,004 53.5% Total Issued 1,618 1,943 1,875 Returned Account Closures 538 40.6%611 36.8%475 30.9% Accounts Downsizing 155 11.7%147 8.9%133 8.7% Defective Transponders 633 47.7%901 54.3%930 60.4% Total Returned 1,326 1,659 1,539 July-11 June-11 Average To-Date FY 2010-11TRANSPONDER DISTRIBUTION At the end of July 2011, the 91 Express Lanes had 112,983 active customer accounts, with 169,020 transponders assigned to those accounts. TRANSPONDER INVENTORY STATUS Internal External Total Available for Distribution:5,605 66 5,671 Customer-Returned Tag Classification 1. Under Warranty - will Return to Sirit:0 2. Out of Warranty - will Destroy:1,995 3. Not yet Classified:2,183 9,849 169,020 TRANSPONDERS ON-HAND: Total Transponders On-hand: Transponders Currently Assigned to Accounts: July 2011 Number of Accounts by Fiscal Year As of July 31, 2011 97,001 98,569 100,528 106,280 113,263 118,416 119,992 117,888 114,556 114,138 112,584 112,983 - 20,000 40,000 60,000 80,000 100,000 120,000 140,000 Fiscal Year 7 . . . . . . . . . Operational Highlights On-road Operations Customer Assistance Specialists (CAS) responded to 87 calls during July. The CAS team received 63 calls to assist disabled vehicles, 12 calls to remove debris and conducted 8 assists or traffic breaks. There were 6 accidents in the Express Lanes and 1 accident in the general- purpose lanes the CAS provided assistance to. 8 . . . . . . . . . Financial Highlights 91 Express Lanes Operating Statement Description Actual (1)Budget (1)Dollar $Percent (%) Operating revenues: Toll revenue 2,964,258.74 2,845,910.00$ 118,348.74$ 4.2 Fee revenue 518,098.27 247,191.00 270,907.27 109.6 Total operating revenues 3,482,357.01 3,093,101.00 389,256.01 12.6 Operating expenses: Contracted services 679,851.22 1,067,039.00 387,187.78 36.3 Administrative fee 163,721.59 191,969.00 28,247.41 14.7 Other professional services - 226,975.00 226,975.00 100.0 Credit card processing fees 82,315.57 93,748.00 11,432.43 12.2 Toll road account servicing 34,583.95 87,627.00 53,043.05 60.5 Other insurance expense 25,702.38 20,750.00 (4,952.38) (23.9) Toll road maintenance supply repairs 11,686.00 21,995.00 10,309.00 46.9 Patrol services 31,053.58 33,200.00 2,146.42 6.5 Building equipment repairs and maint 1,897.84 - (1,897.84) N/A Other services 2,499.86 800.00 (1,699.86) (212.5) Advertising fees - - - N/A Utilities - 1,494.00 1,494.00 100.0 Office expense 705.00 12,927.00 12,222.00 94.5 Bad debt expense - - - N/A Miscellaneous (2)9,921.39 19,027.00 9,105.61 47.9 Leases 30,481.02 34,445.00 3,963.98 11.5 Total operating expenses 1,074,419.40 1,811,996.00 737,576.60 40.7 Depreciation and amortization (3)718,285.49 - (718,285.49) N/A Operating income (loss)1,689,652.12 1,281,105.00 408,547.12 31.9 Nonoperating revenues (expenses): Federal assistance grants - - - N/A Interest income 1,076.35 73,572.00 (72,495.65) (98.5) Interest expense (560,602.68) (567,196.00) 6,593.32 1.2 Other 2,666.00 - 2,666.00 N/A Total nonoperating revenues (expenses)(556,860.33) (493,624.00) (63,236.33) (12.8) Transfers in - - - N/A Transfers out - - - N/A Net income (loss)1,132,791.79$ 787,481.00$ 345,310.79$ 43.9 ¹Actual 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. ²Miscellaneous expenses include: Bond Insurance Costs, Bank Service Charge, Transponder Materials. ³Depreciation and amortization are not budgeted items. YTD as of July 31, 2011 YTD Variance ORANGE COUNTY TRANSPORTATION AUTHORITY 91 Express Lanes Monthly Status Reports Attachment B ATTACHMENT B Orange County Transportation Authority SSttaattuuss RReeppoorrtt AAuugguusstt 22001111 As of August 31, 2011 2 . . . . . . . . . Operations Overview Traffic and Revenue Statistics Total traffic volume on the 91 Express Lanes for August 2011 was 1,048,380. This represents a daily average of 33,819. This is a 3.5% decrease in total traffic volume from the same period last year when traffic levels totaled 1,086,328. Potential toll revenue for the month was $2,997,883 which represents a decrease of 5.8% from the prior year’s total of $3,181,035. Carpool percentage for the month was 24.3% as compared to the previous year’s rate of 24.2%. 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 2011. Current Month-to-Date (MTD) as of August 31, 2011 (Fiscal Year (FY) 2011-12 data is for the corresponding month in that fiscal year) Trips August 11 MTD Actual August 10 MTD Actual Yr-to-Yr % Variance Full Toll Lanes 793,176 823,210 -3.6% 3+ Lanes 255,204 263,118 -3.0% Total Gross Trips 1,048,380 1,086,328 -3.5% Revenue Full Toll Lanes $2,917,855 $3,092,461 -5.6% 3+ Lanes $80,028 $88,574 -9.6% Total Gross Revenue $2,997,883 $3,181,035 -5.8% Average Revenue Per Trip Average Full Toll Lanes $3.68 $3.76 -2.1% Average 3+ Lanes $0.31 $0.34 -8.8% Average Revenue Per Trip $2.86 $2.93 -2.4% 3 . . . . . . . . . The 2012 fiscal year-to-date (YTD) traffic volume is 6.3% lower than the same period last year. The 2012 fiscal year-to-date revenue is 9.9% lower than for the same period last year. Year-to- date average revenue per-trip is $2.79. 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 2011 through August 2011. FY 2011-12 to Date as of August 31, 2011 (FY 2011-12 data is for the period July 1, 2011 through August 31, 2011; FY 2010-11 data is for the corresponding period in that fiscal year.) Trips FY 2011-12 YTD Actual FY 2010-11 YTD Actual Yr-to-Yr % Variance Full Toll Lanes 1,517,929 1,631,347 -7.0% 3+ Lanes 526,877 550,311 -4.3% Total Gross Trips 2,044,806 2,181,658 -6.3% Revenue Full Toll Lanes $5,545,883 $6,146,855 -9.8% 3+ Lanes $156,874 $182,424 -14.0% Total Gross Revenue $5,702,757 $6,329,279 -9.9% Average Revenue Per Trip Average Full Toll Lanes $3.65 $3.77 -3.2% Average 3+ Lanes $0.30 $0.33 -9.1% Average Revenue Per Trip $2.79 $2.90 -3.8% 4 . . . . . . . . . Traffic and Revenue Summary The chart below reflects the total trips breakdown between Full Toll trips and HOV3+ trips for FY 2011-12 on a monthly basis. The chart below reflects the gross potential revenue breakdown between Full Toll trips and HOV3+ trips for FY 2011-12 on a monthly basis. 5 . . . . . . . . . None of the peak traffic hour in the eastbound direction reached or exceeded 90% or more of defined capacity during the month of August 2011. As demonstrated on the next chart, westbound peak hour traffic volumes top out at 65% of defined capacity. EASTBOUND PEAK-HOUR VOLUMES PM Time Price HOV Vol. Cap.Price HOV Vol. Cap.Price HOV Vol. Cap.Price HOV Vol. Cap.Price HOV Vol. Cap. 1400 - 1500 $4.15 288 1,557 46%$4.15 317 1,827 54%$4.15 294 1,599 47%$4.25 325 1,801 53%$3.10 439 2,555 75% 1500 - 1600 $4.45 420 1,838 54%$3.70 524 2,494 73%$3.95 598 2,571 76%$5.45 573 2,756 81%$9.75 573 2,534 75% 1600 - 1700 $5.05 406 2,131 63%$7.30 531 2,481 73%$7.80 514 2,455 72%$9.45 542 2,549 75%$8.85 565 2,610 77% 1700 - 1800 $4.85 470 2,446 72%$6.75 518 2,526 74%$8.00 438 1,923 57%$9.30 503 2,460 72%$7.50 451 2,364 70% 1800 - 1900 $4.45 496 2,158 63%$3.60 492 2,184 64%$3.60 530 2,571 76%$4.40 499 2,386 70%$5.35 488 1,951 57% 1900 - 2000 $3.15 284 1,128 33%$3.15 278 1,247 37%$3.15 342 1,490 44%$4.55 392 1,627 48%$5.00 416 1,410 41% PM Time Price HOV Vol. Cap.Price HOV Vol. Cap.Price HOV Vol. Cap.Price HOV Vol. Cap.Price HOV Vol. Cap. 1400 - 1500 $4.15 311 1,957 58%$4.15 290 1,590 47%$4.15 253 1,549 46%$4.25 292 1,868 55%$3.10 414 2,595 76% 1500 - 1600 $4.45 526 2,565 75%$3.70 515 2,528 74%$3.95 441 2,555 75%$5.45 499 2,770 81%$9.75 534 2,528 74% 1600 - 1700 $5.05 499 2,547 75%$7.30 528 2,615 77%$7.80 519 2,847 84%$9.45 553 2,726 80%$8.85 473 2,754 81% 1700 - 1800 $4.85 466 2,534 75%$6.75 488 2,584 76%$8.00 486 2,769 81%$9.30 449 2,575 76%$7.50 428 2,366 70% 1800 - 1900 $4.45 423 1,948 57%$3.60 496 2,315 68%$3.60 447 2,650 78%$4.40 464 2,374 70%$5.35 426 1,863 55% 1900 - 2000 $3.15 282 1,122 33%$3.15 342 1,308 38%$3.15 348 1,812 53%$4.55 306 1,407 41%$5.00 338 1,317 39% PM Time Price HOV Vol. Cap.Price HOV Vol. Cap.Price HOV Vol. Cap.Price HOV Vol. Cap.Price HOV Vol. Cap. 1400 - 1500 $4.15 247 1,501 44%$4.15 252 1,641 48%$4.15 277 1,678 49%$4.25 275 1,878 55%$3.10 413 2,728 80% 1500 - 1600 $4.45 453 2,223 65%$3.70 461 2,441 72%$3.95 457 2,528 74%$5.45 520 2,642 78%$9.75 538 2,754 81% 1600 - 1700 $5.05 430 2,433 72%$7.30 431 2,534 75%$7.80 458 2,649 78%$9.45 501 2,730 80%$8.85 462 2,774 82% 1700 - 1800 $4.85 357 2,471 73%$6.75 447 2,478 73%$8.00 434 2,531 74%$9.30 477 2,678 79%$7.50 439 2,594 76% 1800 - 1900 $4.45 406 2,090 61%$3.60 418 2,193 65%$3.60 433 2,271 67%$4.40 423 2,325 68%$5.35 507 2,416 71% 1900 - 2000 $3.15 240 1,156 34%$3.15 269 1,317 39%$3.15 327 1,501 44%$4.55 297 1,407 41%$5.00 407 1,983 58% PM Time Price HOV Vol. Cap.Price HOV Vol. Cap.Price HOV Vol. Cap.Price HOV Vol. Cap.Price HOV Vol. Cap. 1400 - 1500 $4.15 286 1,684 50%$4.15 258 1,670 49%$4.15 272 1,676 49%$4.25 311 2,063 61%$3.10 419 2,648 78% 1500 - 1600 $4.45 476 2,493 73%$3.70 483 2,514 74%$3.95 499 2,672 79%$5.45 533 2,775 82%$9.75 541 2,791 82% 1600 - 1700 $5.05 455 2,497 73%$7.30 449 2,618 77%$7.80 449 2,674 79%$9.45 554 2,844 84%$8.85 449 2,818 83% 1700 - 1800 $4.85 385 2,408 71%$6.75 444 2,620 77%$8.00 447 2,472 73%$9.30 488 2,638 78%$7.50 436 2,581 76% 1800 - 1900 $4.45 401 1,948 57%$3.60 429 2,377 70%$3.60 450 2,325 68%$4.40 467 2,543 75%$5.35 437 2,165 64% 1900 - 2000 $3.15 247 1,040 31%$3.15 293 1,425 42%$3.15 305 1,426 42%$4.55 336 1,650 49%$5.00 358 1,478 43% PM Time Price HOV Vol. Cap.Price HOV Vol. Cap.Price HOV Vol. Cap.Price HOV Vol. Cap.Price HOV Vol. Cap. 1400 - 1500 $4.15 246 1,572 46%$4.15 280 1,731 51%$4.15 259 1,702 50% 1500 - 1600 $4.45 448 2,399 71%$3.70 488 2,666 78%$3.95 508 2,650 78% 1600 - 1700 $5.05 405 2,444 72%$7.30 486 2,726 80%$7.80 449 2,487 73% 1700 - 1800 $4.85 418 2,397 71%$6.75 403 2,590 76%$8.00 481 2,882 85% 1800 - 1900 $4.45 374 1,864 55%$3.60 426 2,385 70%$3.60 471 2,504 74% 1900 - 2000 $3.15 236 1,090 32%$3.15 312 1,564 46%$3.15 314 1,547 46% Monday Tuesday Wednesday Thursday 08/05/1108/01/11 08/02/11 08/03/11 08/04/11 Friday Monday 08/08/11 Tuesday 08/09/11 Thursday 08/18/11 Wednesday 08/10/11 Thursday 08/11/11 Thursday 08/25/11 Friday 08/12/11 Monday 08/15/11 Tuesday 08/16/11 Wednesday 08/17/11 Thursday 09/01/11 Friday 08/19/11 Monday 08/22/11 Tuesday 08/23/11 Wednesday 08/24/11 Friday 08/26/11 Monday 08/29/11 Tuesday 08/30/11 Wednesday 08/31/11 Friday 09/02/11 6 . . . . . . . . . WESTBOUND PEAK-HOUR VOLUMES AM Time Price HOV Vol. Cap.Price HOV Vol. Cap.Price HOV Vol. Cap.Price HOV Vol. Cap.Price HOV Vol. Cap. 0400 - 0500 $2.45 246 652 19%$2.45 249 625 18%$2.45 252 585 17%$2.45 252 568 17%$2.45 211 494 15% 0500 - 0600 $4.00 468 1,621 48%$4.00 502 1,717 51%$4.00 493 1,722 51%$4.00 502 1,623 48%$3.85 436 1,500 44% 0600 - 0700 $4.15 460 1,999 59%$4.15 515 2,103 62%$4.15 497 2,092 62%$4.15 498 2,085 61%$4.00 415 1,714 50% 0700 - 0800 $4.60 363 1,912 56%$4.60 390 1,950 57%$4.60 394 1,929 57%$4.60 390 1,974 58%$4.45 389 1,654 49% 0800 - 0900 $4.15 265 1,623 48%$4.15 256 1,524 45%$4.15 268 1,591 47%$4.15 263 1,498 44%$4.00 262 1,342 39% 0900 - 1000 $3.30 246 1,235 36%$3.30 290 1,312 39%$3.30 273 1,332 39%$3.30 362 1,628 48%$3.30 303 1,267 37% AM Time Price HOV Vol. Cap.Price HOV Vol. Cap.Price HOV Vol. Cap.Price HOV Vol. Cap.Price HOV Vol. Cap. 0400 - 0500 $2.45 223 600 18%$2.45 240 591 17%$2.45 259 600 18%$2.45 239 553 16%$2.45 223 495 15% 0500 - 0600 $4.00 455 1,601 47%$4.00 479 1,640 48%$4.00 470 1,632 48%$4.00 496 1,662 49%$3.85 432 1,509 44% 0600 - 0700 $4.15 464 1,998 59%$4.15 462 2,010 59%$4.15 475 2,031 60%$4.15 420 1,588 47%$4.00 409 1,661 49% 0700 - 0800 $4.60 365 1,873 55%$4.60 387 1,980 58%$4.60 330 1,719 51%$4.60 393 2,014 59%$4.45 312 1,511 44% 0800 - 0900 $4.15 254 1,434 42%$4.15 260 1,537 45%$4.15 225 1,347 40%$4.15 220 1,622 48%$4.00 227 1,277 38% 0900 - 1000 $3.30 243 1,174 35%$3.30 227 1,176 35%$3.30 217 1,213 36%$3.30 192 1,210 36%$3.30 196 1,116 33% AM Time Price HOV Vol. Cap.Price HOV Vol. Cap.Price HOV Vol. Cap.Price HOV Vol. Cap.Price HOV Vol. Cap. 0400 - 0500 $2.45 240 604 18%$2.45 248 603 18%$2.45 247 594 17%$2.45 258 629 19%$2.45 217 510 15% 0500 - 0600 $4.00 457 1,640 48%$4.00 495 1,659 49%$4.00 502 1,741 51%$4.00 483 1,642 48%$3.85 420 1,498 44% 0600 - 0700 $4.15 478 2,025 60%$4.15 464 2,069 61%$4.15 480 2,052 60%$4.15 496 2,072 61%$4.00 422 1,748 51% 0700 - 0800 $4.60 310 1,902 56%$4.60 356 1,969 58%$4.60 359 2,030 60%$4.60 339 1,894 56%$4.45 332 1,531 45% 0800 - 0900 $4.15 213 1,524 45%$4.15 221 1,536 45%$4.15 265 1,913 56%$4.15 227 1,551 46%$4.00 231 1,353 40% 0900 - 1000 $3.30 172 1,195 35%$3.30 190 1,293 38%$3.30 222 1,586 47%$3.30 198 1,318 39%$3.30 185 1,116 33% AM Time Price HOV Vol. Cap.Price HOV Vol. Cap.Price HOV Vol. Cap.Price HOV Vol. Cap.Price HOV Vol. Cap. 0400 - 0500 $2.45 229 625 18%$2.45 224 609 18%$2.45 252 599 18%$2.45 262 625 18%$2.45 223 547 16% 0500 - 0600 $4.00 452 1,664 49%$4.00 491 1,589 47%$4.00 499 1,678 49%$4.00 475 1,671 49%$3.85 463 1,621 48% 0600 - 0700 $4.15 476 2,079 61%$4.15 492 1,971 58%$4.15 531 2,103 62%$4.15 569 2,172 64%$4.00 466 1,869 55% 0700 - 0800 $4.60 340 2,018 59%$4.60 379 2,014 59%$4.60 383 2,087 61%$4.60 406 2,208 65%$4.45 352 1,731 51% 0800 - 0900 $4.15 199 1,427 42%$4.15 231 1,783 52%$4.15 248 1,927 57%$4.15 263 1,810 53%$4.00 203 1,332 39% 0900 - 1000 $3.30 233 1,312 39%$3.30 225 1,610 47%$3.30 222 1,650 49%$3.30 220 1,456 43%$3.30 218 1,214 36% AM Time Price HOV Vol. Cap.Price HOV Vol. Cap.Price HOV Vol. Cap.Price HOV Vol. Cap.Price HOV Vol. Cap. 0400 - 0500 $2.45 229 607 18%$2.45 256 594 17%$2.45 255 604 18% 0500 - 0600 $4.00 464 1,701 50%$4.00 515 1,704 50%$4.00 484 1,645 48% 0600 - 0700 $4.15 516 2,073 61%$4.15 506 2,053 60%$4.15 548 2,171 64% 0700 - 0800 $4.60 392 2,051 60%$4.60 448 2,168 64%$4.60 427 2,167 64% 0800 - 0900 $4.15 231 1,811 53%$4.15 248 1,801 53%$4.15 227 1,742 51% 0900 - 1000 $3.30 148 1,312 39%$3.30 181 1,377 41%$3.30 166 1,282 38% Wednesday Thursday 08/05/1108/01/11 08/02/11 08/03/11 08/04/11 Friday Monday Tuesday Thursday 08/11/11 Thursday 08/18/11 Monday 08/08/11 Tuesday 08/09/11 Wednesday 08/10/11 Thursday 08/25/11 Friday 08/12/11 Monday 08/15/11 Tuesday 08/16/11 Wednesday 08/17/11 Thursday 09/01/11 Friday 08/19/11 Monday 08/22/11 Tuesday 08/23/11 Wednesday 08/24/11 Friday 09/02/11 Friday 08/26/11 Monday 08/29/11 Tuesday 08/30/11 Wednesday 08/31/11 7 . . . . . . . . . Transponder Distribution Status Tags % of Total Tags % of Total Issued To New Accounts 744 34.8%580 35.8%662 35.2% Additional Tags to Existing Accounts 480 22.4%363 22.4%422 22.4% Replacement Transponders 917 42.8%675 41.7%796 42.4% Total Issued 2,141 1,618 1,880 Returned Account Closures 509 34.3%538 40.6%524 37.3% Accounts Downsizing 145 9.8%155 11.7%150 10.7% Defective Transponders 829 55.9%633 47.7%731 52.0% Total Returned 1,483 1,326 1,405 Average To-Date FY 2011-12TRANSPONDER DISTRIBUTION August-11 July-11 At the end of August 2011, the 91 Express Lanes had 113,116 active customer accounts, with 169,365 transponders assigned to those accounts. TRANSPONDER INVENTORY STATUS Internal External Total Available for Distribution:5,671 0 5,671 Customer-Returned Tag Classification 1. Under Warranty - will Return to Sirit:0 2. Out of Warranty - will Destroy:0 3. Not yet Classified:2,183 7,854 169,365 TRANSPONDERS ON-HAND: Total Transponders On-hand: Transponders Currently Assigned to Accounts: August 2011 Number of Accounts by Fiscal Year As of August 31, 2011 97,001 98,569 100,528 106,280 113,263 118,416 119,992 117,888 114,556 114,138 112,584 113,116 - 20,000 40,000 60,000 80,000 100,000 120,000 140,000 Fiscal Year 8 . . . . . . . . . Operational Highlights On-road Operations Customer Assistance Specialists (CAS) responded to 101 calls during August. The CAS team received 70 calls to assist disabled vehicles, 9 calls to remove debris and conducted 14 assists or traffic breaks. There were 4 accidents in the Express Lanes and 4 accidents in the general- purpose lanes the CAS provided assistance to. 9 . . . . . . . . . Financial Highlights 91 Express Lanes Operating Statement Description Actual (1)Budget (1)Dollar $Percent (%) Operating revenues: Toll revenue 6,067,452.07$ 5,695,595.00$ 371,857.07$ 6.5 Fee revenue 1,003,156.84 750,584.00 252,572.84 33.7 Total operating revenues 7,070,608.91 6,446,179.00 624,429.91 9.7 Operating expenses: Contracted services 969,776.83 1,632,340.00 662,563.17 40.6 Administrative fee 284,200.44 383,938.00 99,737.56 26.0 Other professional services 6,841.97 284,050.00 277,208.03 97.6 Credit card processing fees 173,660.22 187,496.00 13,835.78 7.4 Toll road account servicing 46,710.55 175,254.00 128,543.45 73.3 Other insurance expense 51,404.76 41,500.00 (9,904.76) (23.9) Toll road maintenance supply repairs 26,662.67 43,990.00 17,327.33 39.4 Patrol services 64,414.84 66,400.00 1,985.16 3.0 Building equipment repairs and maint 43,197.92 69,028.00 25,830.08 37.4 Other services 4,999.72 11,975.00 6,975.28 58.2 Advertising fees - - - N/A Utilities 1,736.49 2,988.00 1,251.51 41.9 Office expense 2,038.89 25,854.00 23,815.11 92.1 Bad debt expense - - - N/A Miscellaneous (2)26,559.10 38,054.00 11,494.90 30.2 Leases 91,443.06 68,890.00 (22,553.06) (32.7) Property taxes - - - N/A Total operating expenses 1,793,647.46 3,031,757.00 1,238,109.54 40.8 Depreciation and amortization (3)1,435,695.31 - (1,435,695.31) N/A Operating income (loss)3,841,266.14 3,414,422.00 426,844.14 12.5 Nonoperating revenues (expenses): Federal assistance grants - - - N/A Interest income 85,674.21 314,682.00 (229,007.79) (72.8) Interest expense (1,108,618.02) (1,114,392.00) 5,773.98 0.5 Other 1,333.00 - 1,333.00 N/A Total nonoperating revenues (expenses)(1,021,610.81) (799,710.00) (221,900.81) (27.7) Transfers in - - - N/A Transfers out - - - N/A Net income (loss)2,819,655.33$ 2,614,712.00$ 204,943.33$ 7.8 ¹Actual 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. ²Miscellaneous expenses include: Bond Insurance Costs, Bank Service Charge, Transponder Materials. ³Depreciation and amortization are not budgeted items. YTD as of August 31, 2011 YTD Variance ORANGE COUNTY TRANSPORTATION AUTHORITY 91 Express Lanes Monthly Status Reports Attachment C ATTACHMENT C Orange County Transportation Authority SSttaattuuss RReeppoorrtt SSeepptteemmbbeerr 22001111 As of September 30, 2011 2 . . . . . . . . . Operations Overview Traffic and Revenue Statistics Total traffic volume on the 91 Express Lanes for September 2011 was 970,788. This represents a daily average of 32,360. This is a 5.5% decrease in total traffic volume from the same period last year when traffic levels totaled 1,027,404. Potential toll revenue for the month was $2,899,822 which represents a decrease of 8.2% from the prior year’s total of $3,158,583. Carpool percentage for the month was 23.2% as compared to the previous year’s rate of 22.9%. 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 2011. Current Month-to-Date (MTD) as of September 30, 2011 (Fiscal Year (FY) 2011-12 data is for the corresponding month in that fiscal year) Trips September 11 MTD Actual September 10 MTD Actual Yr-to-Yr % Variance Full Toll Lanes 745,803 792,408 -5.9% 3+ Lanes 224,985 234,996 -4.3% Total Gross Trips 970,788 1,027,404 -5.5% Revenue Full Toll Lanes $2,826,509 $3,074,119 -8.1% 3+ Lanes $73,313 $84,464 -13.2% Total Gross Revenue $2,899,822 $3,158,583 -8.2% Average Revenue Per Trip Average Full Toll Lanes $3.79 $3.88 -2.3% Average 3+ Lanes $0.33 $0.36 -9.3% Average Revenue Per Trip $2.99 $3.07 -2.6% 3 . . . . . . . . . The 2012 fiscal year-to-date (YTD) traffic volume is 6% lower than the same period last year. The 2012 fiscal year-to-date revenue is 9.2% lower than for the same period last year. Year-to- 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 2011 through September 2011. FY 2011-12 to Date as of September 30, 2011 (FY 2011-12 data is for the period July 1, 2011 through September 30, 2011; FY 2010-11 data is for the corresponding period in that fiscal year.) Trips FY 2011-12 YTD Actual FY 2010-11 YTD Actual Yr-to-Yr % Variance Full Toll Lanes 2,263,556 2,423,755 -6.6% 3+ Lanes 751,842 785,307 -4.3% Total Gross Trips 3,015,398 3,209,062 -6.0% Revenue Full Toll Lanes $8,388,519 $9,220,974 -9.0% 3+ Lanes $229,476 $266,888 -14.0% Total Gross Revenue $8,617,995 $9,487,862 -9.2% Average Revenue Per Trip Average Full Toll Lanes $3.71 $3.80 -2.6% Average 3+ Lanes $0.31 $0.34 -10.2% Average Revenue Per Trip $2.86 $2.96 -3.3% 4 . . . . . . . . . Traffic and Revenue Summary The chart below reflects the total trips breakdown between Full Toll trips and HOV3+ trips for FY 2011-12 on a monthly basis. 724,753 793,176 745,803 271,673 255,204 224,985 175,000 350,000 525,000 700,000 875,000 1,050,000 1,225,000 1,400,000 Jul-11 Aug -11 Sep -11 Oct-11 Nov-11 Dec -11 Jan -12 Feb-12 Mar-12 Apr-12 May-12 Jun -12 Vo l u m e Month FY 2011-12 Traffic Volume Overview 3+ Lanes Full Toll Lanes The chart below reflects the gross potential revenue breakdown between Full Toll trips and HOV3+ trips for FY 2011-12 on a monthly basis. 2,628,028 2,917,855 2,826,509 76,846 80,028 73,313 $2,500,000 $2,600,000 $2,700,000 $2,800,000 $2,900,000 $3,000,000 $3,100,000 Jul-11 Aug -11 Sep -11 Oct-11 Nov-11 Dec-11 Jan -12 Feb-12 Mar-12 Apr-12 May-12 Jun -12 Re v e n u e Month FY 2011-12 Revenue Summary Full Toll Lanes 3+ Lanes 5 . . . . . . . . . None of the peak traffic hour in the eastbound direction reached or exceeded 90% or more of defined capacity during the month of September 2011. As demonstrated on the next chart, westbound peak hour traffic volumes top out at 72% of defined capacity. EASTBOUND PEAK-HOUR VOLUMES PM Time Price HOV Vol. Cap.Price HOV Vol. Cap.Price HOV Vol. Cap.Price HOV Vol. Cap.Price HOV Vol. Cap. 1400 - 1500 $4.25 292 1,956 58%$3.10 422 2,752 81% 1500 - 1600 $5.45 500 2,757 81%$9.75 551 2,783 82% 1600 - 1700 $9.45 487 2,827 83%$8.85 498 2,485 73% 1700 - 1800 $9.30 432 2,583 76%$7.50 389 2,021 59% 1800 - 1900 $4.40 500 2,740 81%$5.35 413 1,694 50% 1900 - 2000 $4.55 339 1,920 56%$5.00 380 1,313 39% PM Time Price HOV Vol. Cap.Price HOV Vol. Cap.Price HOV Vol. Cap.Price HOV Vol. Cap.Price HOV Vol. Cap. 1400 - 1500 $3.65 226 588 17%$4.15 203 1,569 46%$4.15 253 1,608 47%$4.25 254 1,918 56%$3.10 364 2,690 79% 1500 - 1600 $3.65 250 603 18%$3.70 467 2,460 72%$3.95 491 2,476 73%$5.45 490 2,705 80%$9.75 582 2,693 79% 1600 - 1700 $3.65 288 634 19%$7.30 415 2,450 72%$7.80 431 2,594 76%$9.45 500 2,684 79%$8.85 462 2,646 78% 1700 - 1800 $3.65 279 633 19%$6.75 443 2,491 73%$8.00 411 2,354 69%$9.30 434 2,525 74%$7.50 421 2,431 72% 1800 - 1900 $3.65 306 641 19%$3.60 441 2,131 63%$3.60 425 2,265 67%$4.40 461 2,503 74%$5.35 384 2,056 60% 1900 - 2000 $3.65 373 709 21%$3.15 257 1,224 36%$3.15 298 1,330 39%$4.55 316 1,573 46%$5.00 349 1,453 43% PM Time Price HOV Vol. Cap.Price HOV Vol. Cap.Price HOV Vol. Cap.Price HOV Vol. Cap.Price HOV Vol. Cap. 1400 - 1500 $4.15 216 1,479 44%$4.15 218 1,606 47%$4.15 245 1,962 58%$4.25 237 1,817 53%$3.10 366 2,663 78% 1500 - 1600 $4.45 460 2,302 68%$3.70 481 2,499 74%$3.95 512 2,588 76%$5.45 472 2,526 74%$9.75 598 2,830 83% 1600 - 1700 $5.05 408 2,399 71%$7.30 421 2,332 69%$7.80 454 2,654 78%$9.45 478 2,461 72%$8.85 481 2,826 83% 1700 - 1800 $4.85 392 2,262 67%$6.75 425 2,412 71%$8.00 418 2,426 71%$9.30 446 2,576 76%$7.50 423 2,539 75% 1800 - 1900 $4.45 414 1,935 57%$3.60 437 2,154 63%$3.60 463 2,326 68%$4.40 441 2,471 73%$5.35 415 2,302 68% 1900 - 2000 $3.15 267 1,112 33%$3.15 286 1,286 38%$3.15 306 1,334 39%$4.55 344 1,631 48%$5.00 339 1,372 40% PM Time Price HOV Vol. Cap.Price HOV Vol. Cap.Price HOV Vol. Cap.Price HOV Vol. Cap.Price HOV Vol. Cap. 1400 - 1500 $4.15 230 1,543 45%$4.15 206 1,552 46%$4.15 221 1,631 48%$4.25 286 1,905 56%$3.10 391 2,659 78% 1500 - 1600 $4.45 461 2,318 68%$3.70 451 2,310 68%$3.95 483 2,583 76%$5.45 498 2,633 77%$9.75 609 2,853 84% 1600 - 1700 $5.05 423 2,422 71%$7.30 451 2,504 74%$7.80 482 2,663 78%$9.45 503 2,614 77%$8.85 505 2,749 81% 1700 - 1800 $4.85 401 2,391 70%$6.75 412 2,466 73%$8.00 459 2,612 77%$9.30 464 2,472 73%$7.50 475 2,611 77% 1800 - 1900 $4.45 412 2,004 59%$3.60 406 2,113 62%$3.60 446 2,424 71%$4.40 430 2,408 71%$5.35 447 2,216 65% 1900 - 2000 $3.15 259 1,103 32%$3.15 305 1,330 39%$3.15 309 1,472 43%$4.55 339 1,413 42%$5.00 393 1,517 45% PM Time Price HOV Vol. Cap.Price HOV Vol. Cap.Price HOV Vol. Cap.Price HOV Vol. Cap.Price HOV Vol. Cap. 1400 - 1500 $4.15 209 1,464 43%$4.15 225 1,627 48%$4.15 222 1,694 50%$4.25 270 1,968 58%$3.10 364 2,649 78% 1500 - 1600 $4.45 473 2,483 73%$3.70 420 2,482 73%$3.95 516 2,629 77%$5.45 511 2,678 79%$9.75 593 2,836 83% 1600 - 1700 $5.05 424 2,401 71%$7.30 543 2,876 85%$7.80 469 2,532 74%$9.45 464 2,603 77%$8.85 489 2,732 80% 1700 - 1800 $4.85 448 2,382 70%$6.75 403 2,340 69%$8.00 447 2,430 71%$9.30 441 2,473 73%$7.50 434 2,597 76% 1800 - 1900 $4.45 398 1,809 53%$3.60 437 2,020 59%$3.60 469 2,405 71%$4.40 460 2,285 67%$5.35 451 2,183 64% 1900 - 2000 $3.15 243 1,121 33%$3.15 282 1,260 37%$3.15 358 1,467 43%$4.55 309 1,494 44%$5.00 372 1,684 50% Friday 09/30/11Thursday 09/29/11 Monday Tuesday Wednesday Thursday Monday 09/26/11 Tuesday 09/27/11 Wednesday 09/28/11 09/02/1108/29/11 08/30/11 08/31/11 09/01/11 Friday 09/09/1109/05/11 09/06/11 09/07/11 09/08/11 FridayMonday Tuesday Wednesday Thursday Monday Tuesday Wednesday Thursday 09/16/1109/12/11 09/13/11 09/14/11 09/15/11 Friday Monday Tuesday Wednesday Thursday 09/23/1109/19/11 09/20/11 09/21/11 09/22/11 Friday 6 . . . . . . . . . WESTBOUND PEAK-HOUR VOLUMES AM Time Price HOV Vol. Cap.Price HOV Vol. Cap.Price HOV Vol. Cap.Price HOV Vol. Cap.Price HOV Vol. Cap. 0400 - 0500 $2.45 271 633 19%$2.45 208 490 14% 0500 - 0600 $4.00 501 1,637 48%$4.00 424 1,415 42% 0600 - 0700 $4.15 561 2,142 63%$4.15 442 1,661 49% 0700 - 0800 $4.60 424 2,135 63%$4.45 368 1,536 45% 0800 - 0900 $4.60 189 1,542 45%$4.25 202 1,194 35% 0900 - 1000 $4.60 178 1,167 34%$3.75 121 700 21% AM Time Price HOV Vol. Cap.Price HOV Vol. Cap.Price HOV Vol. Cap.Price HOV Vol. Cap.Price HOV Vol. Cap. 0400 - 0500 $1.30 19 39 1%$2.45 246 659 19%$2.45 257 639 19%$2.45 271 639 19%$2.45 239 582 17% 0500 - 0600 $1.30 34 65 2%$4.00 454 1,664 49%$4.00 486 1,678 49%$4.00 509 1,705 50%$3.85 483 1,610 47% 0600 - 0700 $2.10 33 102 3%$4.15 541 2,180 64%$4.15 556 2,240 66%$4.15 533 2,134 63%$4.00 489 1,925 57% 0700 - 0800 $2.10 53 119 4%$4.60 438 2,177 64%$4.60 443 2,167 64%$4.60 476 2,295 68%$4.45 444 2,067 61% 0800 - 0900 $2.10 114 253 7%$4.15 242 1,902 56%$4.15 211 1,844 54%$4.15 230 1,864 55%$4.00 228 1,691 50% 0900 - 1000 $3.05 182 411 12%$3.30 177 1,539 45%$3.30 157 1,460 43%$3.30 189 1,599 47%$3.30 176 1,146 34% AM Time Price HOV Vol. Cap.Price HOV Vol. Cap.Price HOV Vol. Cap.Price HOV Vol. Cap.Price HOV Vol. Cap. 0400 - 0500 $2.45 259 659 19%$2.45 251 634 19%$2.45 272 640 19%$2.45 276 664 20%$2.45 221 558 16% 0500 - 0600 $4.00 479 1,703 50%$4.00 465 1,641 48%$4.00 492 1,732 51%$4.00 510 1,711 50%$3.85 453 1,573 46% 0600 - 0700 $4.15 550 2,188 64%$4.15 455 1,948 57%$4.15 566 2,189 64%$4.15 578 2,178 64%$4.00 537 1,902 56% 0700 - 0800 $4.60 463 2,299 68%$4.60 552 2,459 72%$4.60 437 2,250 66%$4.60 448 2,223 65%$4.45 382 1,819 54% 0800 - 0900 $4.15 182 1,791 53%$4.15 221 2,082 61%$4.15 226 1,863 55%$4.15 197 1,738 51%$4.00 193 1,486 44% 0900 - 1000 $3.30 171 1,386 41%$3.30 161 1,558 46%$3.30 146 1,276 38%$3.30 150 1,178 35%$3.30 162 1,077 32% AM Time Price HOV Vol. Cap.Price HOV Vol. Cap.Price HOV Vol. Cap.Price HOV Vol. Cap.Price HOV Vol. Cap. 0400 - 0500 $2.45 230 639 19%$2.45 263 629 19%$2.45 259 609 18%$2.45 270 608 18%$2.45 223 554 16% 0500 - 0600 $4.00 477 1,720 51%$4.00 500 1,665 49%$4.00 499 1,718 51%$4.00 494 1,745 51%$3.85 401 1,347 40% 0600 - 0700 $4.15 555 2,138 63%$4.15 549 2,129 63%$4.15 569 2,167 64%$4.15 572 2,143 63%$4.00 415 1,528 45% 0700 - 0800 $4.60 440 2,163 64%$4.60 449 2,065 61%$4.60 481 2,252 66%$4.60 507 2,321 68%$4.45 519 2,303 68% 0800 - 0900 $4.15 199 1,713 50%$4.15 233 1,968 58%$4.15 214 1,763 52%$4.15 214 1,915 56%$4.00 246 1,822 54% 0900 - 1000 $3.30 134 1,220 36%$3.30 150 1,540 45%$3.30 168 1,239 36%$3.30 168 1,441 42%$3.30 172 1,256 37% AM Time Price HOV Vol. Cap.Price HOV Vol. Cap.Price HOV Vol. Cap.Price HOV Vol. Cap.Price HOV Vol. Cap. 0400 - 0500 $2.45 226 577 17%$2.45 266 626 18%$2.45 255 602 18%$2.45 266 608 18%$2.45 214 528 16% 0500 - 0600 $4.00 453 1,485 44%$4.00 488 1,725 51%$4.00 497 1,724 51%$4.00 484 1,708 50%$3.85 458 1,654 49% 0600 - 0700 $4.15 533 2,083 61%$4.15 574 2,188 64%$4.15 569 2,150 63%$4.15 609 2,199 65%$4.00 501 1,882 55% 0700 - 0800 $4.60 511 2,338 69%$4.60 447 2,235 66%$4.60 438 2,264 67%$4.60 439 2,245 66%$4.45 397 1,859 55% 0800 - 0900 $4.15 226 2,022 59%$4.15 210 1,777 52%$4.15 222 1,598 47%$4.15 190 1,647 48%$4.00 223 1,601 47% 0900 - 1000 $3.30 139 1,247 37%$3.30 139 1,240 36%$3.30 153 1,187 35%$3.30 154 1,530 45%$3.30 151 1,149 34% 09/23/11Friday 09/29/11 Friday Friday 09/30/11 Friday 09/09/11Friday 09/16/11 Monday 09/26/11 Tuesday 09/27/11 Wednesday 09/28/11 Thursday Monday Tuesday Wednesday Thursday08/29/11 08/30/11 08/31/11 Monday Tuesday Wednesday Thursday09/05/11 09/06/11 09/07/11 09/08/11 09/02/1109/01/11 Monday Tuesday Wednesday Thursday09/12/11 09/13/11 09/14/11 09/15/11 09/22/11Monday Tuesday Wednesday Thursday 09/19/11 09/20/11 09/21/11 7 . . . . . . . . . Transponder Distribution Status Tags % of Total Tags % of Total Issued To New Accounts 592 30.0%744 34.8%958 33.4% Additional Tags to Existing Accounts 411 20.8%480 22.4%627 21.9% Replacement Transponders 969 49.1%917 42.8%1,281 44.7% Total Issued 1,972 2,141 2,866 Returned Account Closures 438 31.1%509 34.3%743 35.2% Accounts Downsizing 152 10.8%145 9.8%226 10.7% Defective Transponders 820 58.2%829 55.9%1,141 54.1% Total Returned 1,410 1,483 2,110 September-11 August-11 Average To-Date FY 2011-12TRANSPONDER DISTRIBUTION At the end of September 2011, the 91 Express Lanes had 113,053 active customer accounts, with 168,591 transponders assigned to those accounts. TRANSPONDER INVENTORY STATUS Internal External Total Available for Distribution:1,623 45 1,668 Customer-Returned Tag Classification 1. Under Warranty - will Return to Sirit:0 2. Out of Warranty - will Destroy:4,543 3. Not yet Classified:2,336 8,547 168,591 TRANSPONDERS ON-HAND: Total Transponders On-hand: Transponders Currently Assigned to Accounts: September 2011 Number of Accounts by Fiscal Year As of September 30, 2011 97,001 98,569 100,528 106,280 113,263 118,416 119,992 117,888 114,556 114,138 112,584 113,053 - 20,000 40,000 60,000 80,000 100,000 120,000 140,000 Fiscal Year 8 . . . . . . . . . Operational Highlights On-road Operations Customer Assistance Specialists (CAS) responded to 111 calls during September. The CAS team received 77 calls to assist disabled vehicles, 11 calls to remove debris and conducted 19 assists or traffic breaks. The CAS provided assistance to 1 accident in the Express Lanes and 3 accidents in the general-purpose lanes. 9 . . . . . . . . . Financial Highlights 91 Express Lanes Operating Statement Description Actual (1)Budget (1)Dollar $Percent (%) Operating revenues: Toll revenue 8,736,605.42 8,546,678.00$ 189,927.42$ 2.2 Fee revenue 1,535,943.63 1,237,663.00 298,280.63 24.1 Total operating revenues 10,272,549.05 9,784,341.00 488,208.05 5.0 Operating expenses: Contracted services 1,549,628.05 2,204,451.00 654,822.95 29.7 Administrative fee 426,300.66 575,907.00 149,606.34 26.0 Other professional services 44,390.12 322,431.00 278,040.88 86.2 Credit card processing fees 254,166.29 282,374.00 28,207.71 10.0 Toll road account servicing 58,441.15 263,937.00 205,495.85 77.9 Other insurance expense 77,107.13 62,500.00 (14,607.13) (23.4) Toll road maintenance supply repairs 43,169.46 66,250.00 23,080.54 34.8 Patrol services 95,683.37 100,000.00 4,316.63 4.3 Building equipment repairs and maint 68,538.51 (86,912.00) (155,450.51) 178.9 Other services 7,499.58 23,275.00 15,775.42 67.8 Advertising fees - - - N/A Utilities 3,412.81 4,500.00 1,087.19 24.2 Office expense 3,574.08 38,937.00 35,362.92 90.8 Bad debt expense 3,001.63 - (3,001.63) N/A Miscellaneous (2)39,099.70 60,660.00 21,560.30 35.5 Leases 100,105.38 103,750.00 3,644.62 3.5 Property taxes - - - N/A Total operating expenses 2,774,117.92 4,022,060.00 1,247,942.08 31.0 Depreciation and amortization (3)2,153,402.76 - (2,153,402.76) N/A Operating income (loss)5,345,028.37 5,762,281.00 (417,252.63) (7.2) Nonoperating revenues (expenses): Federal assistance grants - - - N/A Interest income 124,184.17 416,166.00 (291,981.83) (70.2) Interest expense (1,642,265.22) (1,668,180.00) 25,914.78 1.6 Other 26,889.80 - 26,889.80 N/A Total nonoperating revenues (expenses)(1,491,191.25) (1,252,014.00) (239,177.25) (19.1) Transfers in - - - N/A Transfers out (89,936.62) - (89,936.62) N/A Net income (loss)3,763,900.50$ 4,510,267.00$ (746,366.50)$ (16.5) ¹Actual 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. ²Miscellaneous expenses include: Bond Insurance Costs, Bank Service Charge, Transponder Materials. ³Depreciation and amortization are not budgeted items. YTD as of September 30, 2011 YTD Variance ORANGE COUNTY TRANSPORTATION AUTHORITY 91 Express Lanes Monthly Status Reports Attachment D ATTACHMENT D Orange County Transportation Authority SSttaattuuss RReeppoorrtt OOccttoobbeerr 22001111 As of October 31, 2011 2 . . . . . . . . . Operations Overview Traffic and Revenue Statistics Total traffic volume on the 91 Express Lanes for October 2011 was 982,685. This represents a daily average of 31,700. This is a 4.8% decrease in total traffic volume from the same period last year when traffic levels totaled 1,031,845. Potential toll revenue for the month was $2,835,419 which represents a decrease of 9.7% from the prior year’s total of $3,138,450. Carpool percentage for the month was 22.9% as compared to the previous year’s rate of 22.3%. 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 October 2011. Current Month-to-Date (MTD) as of October 31, 2011 (Fiscal Year (FY) 2011-12 data is for the corresponding month in that fiscal year) Trips Oct-11 MTD Actual Stantec MTD Projected # Variance % Variance Oct-10 MTD Actual Yr-to-Yr % Variance Full Toll Lanes 757,185 777,957 (20,772)(2.7%)801,736 (5.6%) 3+ Lanes 225,500 265,343 (39,843)(15.0%)230,109 (2.0%) Total Gross Trips 982,685 1,043,300 (60,615)(5.8%)1,031,845 (4.8%) Revenue Full Toll Lanes $2,768,314 $2,800,032 ($31,719)(1.1%)$3,056,267 (9.4%) 3+ Lanes $67,105 $73,106 ($6,001)(8.2%)$82,183 (18.3%) Total Gross Revenue $2,835,419 $2,873,139 ($37,720)(1.3%)$3,138,450 (9.7%) Average Revenue per Trip Average Full Toll Lanes $3.66 $3.60 $0.06 1.7%$3.81 (3.9%) Average 3+ Lanes $0.30 $0.28 $0.02 7.1%$0.36 (16.7%) Average Revenue Per Trip $2.89 $2.75 $0.14 5.1%$3.04 (4.9%) 3 . . . . . . . . . The 2012 fiscal year-to-date (YTD) traffic volume is 5.7% lower than the same period last year. The 2012 fiscal year-to-date revenue is 9.3% lower than for the same period last year. Year-to- 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 2011 through October 2011. FY 2011-12 to Date as of October 31, 2011 (FY 2011-12 data is for the period July 1, 2011 through October 31, 2011; FY 2010-11 data is for the corresponding period in that fiscal year.) Trips FY 2011-12 YTD Actual Stantec YTD Projected # Variance % Variance FY 2010-11 YTD Actual Yr-to-Yr % Variance Full Toll Lanes 3,020,741 3,034,929 (14,188)(0.5%)3,225,491 (6.3%) 3+ Lanes 977,342 1,042,800 (65,458)(6.3%)1,015,416 (3.7%) Total Trips 3,998,083 4,077,729 (79,646)(2.0%)4,240,907 (5.7%) Full Toll Lanes $11,156,833 $11,134,246 $22,586 0.2%$12,277,241 (9.1%) 3+ Lanes $296,581 $298,641 ($2,060)(0.7%)$349,071 (15.0%) Total Revenue $11,453,414 $11,432,888 $20,526 0.2%$12,626,312 (9.3%) Full Toll Lanes $3.69 $3.67 $0.02 0.5%$3.81 (3.1%) 3+ Lanes $0.30 $0.29 $0.01 3.4%$0.34 (11.8%) Revenue Per Trip $2.86 $2.80 $0.06 2.1%$2.98 (4.0%) 4 . . . . . . . . . Traffic and Revenue Summary The chart below reflects the total trips breakdown between Full Toll trips and HOV3+ trips for FY 2011-12 on a monthly basis. 724,753 793,176 745,803 757,185 271,673 255,204 224,985 225,500 175,000 350,000 525,000 700,000 875,000 1,050,000 1,225,000 1,400,000 Jul-11 Aug -11 Sep -11 Oct-11 Nov-11 Dec-11 Jan -12 Feb-12 Mar-12 Apr-12 May -12 Jun -12 Vo l u m e Month FY 2011-12 Traffic Volume Overview 3+ Lanes Full Toll Lanes The chart below reflects the gross potential revenue breakdown between Full Toll trips and HOV3+ trips for FY 2011-12 on a monthly basis. 2,628,028 2,917,855 2,826,509 2,768,314 76,846 80,028 73,313 67,105 $2,500,000 $2,600,000 $2,700,000 $2,800,000 $2,900,000 $3,000,000 $3,100,000 Jul-11 Aug -11 Sep -11 Oct-11 Nov -11 Dec-11 Jan -12 Feb-12 Mar-12 Apr-12 May -12 Jun -12 Re v e n u e Month FY 2011-12 Revenue Summary Full Toll Lanes 3+ Lanes 5 . . . . . . . . . None of the peak traffic hour in the eastbound direction reached or exceeded 90% or more of defined capacity during the month of October 2011. As demonstrated on the next chart, westbound peak hour traffic volumes top out at 71% of defined capacity. EASTBOUND PEAK-HOUR VOLUMES PM Time Price HOV Vol. Cap.Price HOV Vol. Cap.Price HOV Vol. Cap.Price HOV Vol. Cap.Price HOV Vol. Cap. 1400 - 1500 $4.15 214 1,555 46%$4.15 193 1,536 45%$4.15 233 1,814 53%$4.25 220 1,847 54%$3.10 388 2,790 82% 1500 - 1600 $4.45 494 2,671 79%$3.70 459 2,451 72%$3.95 424 2,362 69%$5.45 501 2,538 75%$9.75 561 2,842 84% 1600 - 1700 $4.55 459 2,521 74%$6.80 448 2,517 74%$7.30 452 2,586 76%$8.95 477 2,592 76%$8.85 491 2,774 82% 1700 - 1800 $4.85 414 2,315 68%$6.25 437 2,511 74%$7.50 443 2,580 76%$8.80 418 2,409 71%$7.00 451 2,668 78% 1800 - 1900 $4.45 444 1,931 57%$3.60 422 2,074 61%$3.60 348 1,948 57%$4.40 431 2,163 64%$5.35 466 2,180 64% 1900 - 2000 $3.15 240 1,084 32%$3.15 269 1,162 34%$3.15 241 1,042 31%$4.55 284 1,352 40%$5.00 379 1,493 44% PM Time Price HOV Vol. Cap.Price HOV Vol. Cap.Price HOV Vol. Cap.Price HOV Vol. Cap.Price HOV Vol. Cap. 1400 - 1500 $4.15 258 1,462 43%$4.15 208 1,543 45%$4.15 242 1,731 51%$4.25 241 1,932 57%$3.10 382 2,810 83% 1500 - 1600 $4.45 469 2,243 66%$3.70 469 2,513 74%$3.95 462 2,558 75%$5.45 518 2,731 80%$9.75 571 2,824 83% 1600 - 1700 $4.55 394 2,363 70%$6.80 469 2,513 74%$7.30 494 2,621 77%$8.95 475 2,679 79%$8.85 530 2,860 84% 1700 - 1800 $4.85 389 2,195 65%$6.25 408 2,459 72%$7.50 437 2,420 71%$8.80 417 2,531 74%$7.00 452 2,878 85% 1800 - 1900 $4.45 374 1,697 50%$3.60 472 2,215 65%$3.60 464 2,344 69%$4.40 490 2,637 78%$5.35 494 2,395 70% 1900 - 2000 $3.15 232 886 26%$3.15 312 1,304 38%$3.15 294 1,394 41%$4.55 330 1,850 54%$5.00 404 1,833 54% PM Time Price HOV Vol. Cap.Price HOV Vol. Cap.Price HOV Vol. Cap.Price HOV Vol. Cap.Price HOV Vol. Cap. 1400 - 1500 $4.15 203 1,520 45%$4.15 223 1,614 47%$4.15 212 1,633 48%$4.25 235 1,980 58%$3.10 376 2,780 82% 1500 - 1600 $4.45 502 2,460 72%$3.70 484 2,471 73%$3.95 510 2,546 75%$5.45 473 2,673 79%$9.75 569 2,956 87% 1600 - 1700 $4.55 436 2,687 79%$6.80 449 2,651 78%$7.30 474 2,734 80%$8.95 494 2,864 84%$8.85 512 2,789 82% 1700 - 1800 $4.85 409 2,358 69%$6.25 443 2,525 74%$7.50 443 2,534 75%$8.80 495 2,742 81%$7.00 477 2,833 83% 1800 - 1900 $4.45 438 1,968 58%$3.60 479 2,364 70%$3.60 504 2,540 75%$4.40 419 2,161 64%$5.35 429 2,181 64% 1900 - 2000 $3.15 244 1,039 31%$3.15 309 1,376 40%$3.15 338 1,536 45%$4.55 427 2,042 60%$5.00 373 1,485 44% PM Time Price HOV Vol. Cap.Price HOV Vol. Cap.Price HOV Vol. Cap.Price HOV Vol. Cap.Price HOV Vol. Cap. 1400 - 1500 $4.15 231 1,559 46%$4.15 200 1,575 46%$4.15 208 1,631 48%$4.25 236 1,875 55%$3.10 376 2,718 80% 1500 - 1600 $4.45 489 2,431 72%$3.70 461 2,489 73%$3.95 470 2,537 75%$5.45 497 2,665 78%$9.75 553 2,801 82% 1600 - 1700 $4.55 463 2,535 75%$6.80 449 2,561 75%$7.30 487 2,643 78%$8.95 487 2,730 80%$8.85 480 2,726 80% 1700 - 1800 $4.85 438 2,291 67%$6.25 408 2,396 70%$7.50 439 2,522 74%$8.80 461 2,565 75%$7.00 449 2,519 74% 1800 - 1900 $4.45 418 1,794 53%$3.60 456 2,191 64%$3.60 489 2,483 73%$4.40 479 2,383 70%$5.35 464 2,165 64% 1900 - 2000 $3.15 242 1,004 30%$3.15 278 1,200 35%$3.15 340 1,648 48%$4.55 340 1,551 46%$5.00 399 1,381 41% PM Time Price HOV Vol. Cap.Price HOV Vol. Cap.Price HOV Vol. Cap.Price HOV Vol. Cap.Price HOV Vol. Cap. 1400 - 1500 $4.15 349 2,237 66% 1500 - 1600 $4.45 541 3,037 89% 1600 - 1700 $4.55 488 2,983 88% 1700 - 1800 $4.85 445 2,353 69% 1800 - 1900 $4.45 281 1,551 46% 1900 - 2000 $3.15 180 669 20% Friday 11/04/11Thursday 11/03/11 Monday Tuesday Wednesday Thursday Monday 10/31/11 Tuesday 11/01/11 Wednesday 11/02/11 10/07/1110/03/11 10/04/11 10/05/11 10/06/11 Friday 10/14/1110/10/11 10/11/11 10/12/11 10/13/11 FridayMonday Tuesday Wednesday Thursday Monday Tuesday Wednesday Thursday 10/21/1110/17/11 10/18/11 10/19/11 10/20/11 Friday Monday Tuesday Wednesday Thursday 10/28/1110/24/11 10/25/11 10/26/11 10/27/11 Friday 6 . . . . . . . . . WESTBOUND PEAK-HOUR VOLUMES AM Time Price HOV Vol. Cap.Price HOV Vol. Cap.Price HOV Vol. Cap.Price HOV Vol. Cap.Price HOV Vol. Cap. 0400 - 0500 $2.45 213 530 16%$2.45 260 630 19%$2.45 228 573 17%$2.45 256 576 17%$2.45 218 545 16% 0500 - 0600 $4.00 476 1,684 50%$4.00 483 1,676 49%$4.00 448 1,691 50%$4.00 495 1,696 50%$3.85 455 1,609 47% 0600 - 0700 $4.15 549 2,108 62%$4.15 510 1,951 57%$4.15 576 2,199 65%$4.15 585 2,176 64%$4.00 543 2,050 60% 0700 - 0800 $4.60 477 2,252 66%$4.60 362 1,458 43%$4.60 383 2,036 60%$4.60 392 2,027 60%$4.45 408 1,887 56% 0800 - 0900 $4.15 238 1,818 53%$4.15 273 2,068 61%$4.15 162 1,303 38%$4.15 184 1,451 43%$4.00 177 1,233 36% 0900 - 1000 $3.30 146 1,127 33%$3.30 171 1,877 55%$3.30 135 1,148 34%$3.30 150 1,362 40%$3.30 163 1,010 30% AM Time Price HOV Vol. Cap.Price HOV Vol. Cap.Price HOV Vol. Cap.Price HOV Vol. Cap.Price HOV Vol. Cap. 0400 - 0500 $2.45 226 580 17%$2.45 260 628 18%$2.45 257 624 18%$2.45 255 626 18%$2.45 228 556 16% 0500 - 0600 $4.00 451 1,621 48%$4.00 453 1,580 46%$4.00 472 1,774 52%$4.00 481 1,625 48%$3.85 462 1,638 48% 0600 - 0700 $4.15 525 2,058 61%$4.15 512 2,015 59%$4.15 620 2,260 66%$4.15 546 2,078 61%$4.00 587 2,103 62% 0700 - 0800 $4.60 376 1,904 56%$4.60 507 2,350 69%$4.60 460 2,261 67%$4.60 493 2,414 71%$4.45 408 1,962 58% 0800 - 0900 $4.15 220 1,359 40%$4.15 248 2,081 61%$4.15 230 1,920 56%$4.15 260 1,995 59%$4.00 211 1,392 41% 0900 - 1000 $3.30 140 995 29%$3.30 169 1,726 51%$3.30 165 1,411 42%$3.30 149 1,406 41%$3.30 149 1,069 31% AM Time Price HOV Vol. Cap.Price HOV Vol. Cap.Price HOV Vol. Cap.Price HOV Vol. Cap.Price HOV Vol. Cap. 0400 - 0500 $2.45 237 631 19%$2.45 261 640 19%$2.45 228 523 15%$2.45 276 619 18%$2.45 223 561 17% 0500 - 0600 $4.00 492 1,758 52%$4.00 493 1,705 50%$4.00 482 1,657 49%$4.00 481 1,764 52%$3.85 480 1,655 49% 0600 - 0700 $4.15 568 2,150 63%$4.15 572 2,293 67%$4.15 598 2,218 65%$4.15 606 2,251 66%$4.00 534 2,019 59% 0700 - 0800 $4.60 461 2,129 63%$4.60 517 2,336 69%$4.60 478 2,286 67%$4.60 486 2,265 67%$4.45 394 1,789 53% 0800 - 0900 $4.15 211 1,790 53%$4.15 273 1,984 58%$4.15 241 1,950 57%$4.15 223 1,791 53%$4.00 191 1,278 38% 0900 - 1000 $3.30 147 1,248 37%$3.30 143 1,399 41%$3.30 164 1,400 41%$3.30 167 1,176 35%$3.30 153 1,046 31% AM Time Price HOV Vol. Cap.Price HOV Vol. Cap.Price HOV Vol. Cap.Price HOV Vol. Cap.Price HOV Vol. Cap. 0400 - 0500 $2.45 239 662 19%$2.45 249 597 18%$2.45 257 601 18%$2.45 260 632 19%$2.45 226 583 17% 0500 - 0600 $4.00 486 1,786 53%$4.00 476 1,718 51%$4.00 457 1,651 49%$4.00 531 1,778 52%$3.85 469 1,641 48% 0600 - 0700 $4.15 587 2,200 65%$4.15 570 2,264 67%$4.15 571 2,135 63%$4.15 565 2,141 63%$4.00 564 2,111 62% 0700 - 0800 $4.60 487 2,231 66%$4.60 473 2,199 65%$4.60 492 2,355 69%$4.60 477 2,304 68%$4.45 385 1,815 53% 0800 - 0900 $4.15 196 1,664 49%$4.15 180 1,638 48%$4.15 191 1,900 56%$4.15 228 1,973 58%$4.00 185 1,234 36% 0900 - 1000 $3.30 145 1,163 34%$3.30 143 1,294 38%$3.30 133 1,198 35%$3.30 168 1,467 43%$3.30 142 998 29% AM Time Price HOV Vol. Cap.Price HOV Vol. Cap.Price HOV Vol. Cap.Price HOV Vol. Cap.Price HOV Vol. Cap. 0400 - 0500 $2.45 307 1,012 30% 0500 - 0600 $4.00 495 1,832 54% 0600 - 0700 $4.15 541 2,179 64% 0700 - 0800 $4.60 386 1,993 59% 0800 - 0900 $4.15 172 1,493 44% 0900 - 1000 $3.30 109 883 26% Friday 10/14/11Friday 10/28/11Friday 10/21/11 Monday 10/31/11 Tuesday 11/01/11 Friday 11/04/11Wednesday 11/02/11 Thursday 11/03/11 Monday Tuesday Wednesday Thursday 10/03/11 10/04/11 10/05/11 Monday Tuesday Wednesday Thursday10/10/11 10/11/11 10/12/11 10/13/11 10/07/1110/06/11 Monday Tuesday Wednesday Thursday10/17/11 10/18/11 10/19/11 Friday 10/27/11Monday Tuesday Wednesday Thursday 10/24/11 10/25/11 10/26/11 10/20/11 Transponder Distribution Status 7 . . . . . . . . . Tags % of Total Tags % of Total Issued To New Accounts 650 37.4%592 30.0%642 34.4% Additional Tags to Existing Accounts 352 20.2%411 20.8%402 21.5% Replacement Transponders 737 42.4%969 49.1%825 44.1% Total Issued 1,739 1,972 1,868 Returned Account Closures 691 38.8%438 31.1%544 36.3% Accounts Downsizing 165 9.3%152 10.8%154 10.3% Defective Transponders 924 51.9%820 58.2%802 53.4% Total Returned 1,780 1,410 1,500 Average To-Date FY 2011-12TRANSPONDER DISTRIBUTION October-11 September-11 At the end of October 2011, the 91 Express Lanes had 113,186 active customer accounts, with 168,477 transponders assigned to those accounts. TRANSPONDER INVENTORY STATUS Internal External Total Available for Distribution:5,288 26 5,314 Customer-Returned Tag Classification 1. Under Warranty - will Return to Sirit:0 2. Out of Warranty - will Destroy:1,004 3. Not yet Classified:2,678 8,996 168,477 TRANSPONDERS ON-HAND: Total Transponders On-hand: Transponders Currently Assigned to Accounts: October 2011 Number of Accounts by Fiscal Year As of October 31, 2011 97,001 98,569 100,528 106,280 113,263 118,416 119,992 117,888 114,556 114,138 112,584 113,186 - 20,000 40,000 60,000 80,000 100,000 120,000 140,000 Fiscal Year 8 . . . . . . . . . Operational Highlights On-road Operations Customer Assistance Specialists (CAS) responded to 71 calls during October. The CAS team received 52 calls to assist disabled vehicles, 6 calls to remove debris and conducted 10 assists or traffic breaks. The CAS provided assistance to 2 accidents in the Express Lanes and 1 accident in the general-purpose lanes. Revenue and Account Management System In October, staff issued a request for proposal for a firm to conduct a systems performance audit on the Revenue and Account Management Software (RAMS), the back office software system for electronic toll collection and customer account management for the 91 Express Lanes. RAMS was installed on the 91 Express Lanes network in June 2011. Due to issues that surfaced with the new system since implementation, the Board of Directors requested staff obtain an independent third-party to review financial transactions for the new back-office system. These issues which have since been resolved, included incorrect time stamp which led to incorrect tolls being charged, trips being incorrectly rejected and incorrect postings which overstated revenues by approximately $871,000 for the months of June through August and were subsequently adjusted in October and reflected in the year-to-date figures as provided in the Operating Statement. The systems performance audit will verify toll transactions are correctly being captured in the back-office system and appropriately posted to customer or violation accounts and will also assess the financial and system controls and the fiscal integrity of the RAMS system Gantry Relocation Project One of the projects identified in the State Route (SR) 91 Implementation Plan is the SR-91 Westbound and Eastbound Lane Addition Project which adds a fifth general purpose lane in both the westbound and eastbound direction between the SR-55 and SR-241. Given that the current gantries span across the toll lanes and the general purpose lanes, the gantries will need to be torn down in order to accommodate the fifth general purpose lanes. Caltrans will be constructing and installing new cantilever gantries approximately two hundred feet from where the current gantries are located. As such, the Electronic Toll and Traffic Management system equipment will need to be relocated onto the new gantries. Staff has been meeting with Caltrans and other vendors to address concerns and to mitigate impacts to the 91 Express Lanes’ operation. 9 . . . . . . . . . Financial Highlights 91 Express Lanes Operating Statement Description Actual (1)Budget (1)Dollar $Percent (%) Operating revenues: Toll revenue 10,593,541.05 11,359,000.00$ (765,458.95)$ (6.7) Fee revenue 2,047,064.74 1,729,246.00 317,818.74 18.4 Total operating revenues 12,640,605.79 13,088,246.00 (447,640.21) (3.4) Operating expenses: Contracted services 2,419,404.88 2,769,752.00 350,347.12 12.6 Administrative fee 568,400.88 767,876.00 199,475.12 26.0 Other professional services 57,693.91 477,506.00 419,812.09 87.9 Credit card processing fees 329,490.18 376,122.00 46,631.82 12.4 Toll road account servicing 79,367.92 351,564.00 272,196.08 77.4 Other insurance expense 102,809.50 83,250.00 (19,559.50) (23.5) Toll road maintenance supply repairs 53,637.41 88,245.00 34,607.59 39.2 Patrol services 121,672.25 133,200.00 11,527.75 8.7 Equipment repairs and maint 90,621.36 215,366.00 124,744.64 57.9 Other services 9,249.81 34,450.00 25,200.19 73.2 Advertising fees - - - N/A Utilities 5,330.65 5,994.00 663.35 11.1 Office expense 19,820.65 51,864.00 32,043.35 61.8 Bad debt expense 3,235.86 - (3,235.86) N/A Miscellaneous (2)51,880.73 79,687.00 27,806.27 34.9 Leases 108,767.70 138,195.00 29,427.30 21.3 Property taxes - - - N/A Total operating expenses 4,021,383.69 5,573,071.00 1,551,687.31 27.8 Depreciation and amortization (3)2,869,307.13 - (2,869,307.13) N/A Operating income (loss)5,749,914.97 7,515,175.00 (1,765,260.03) (23.5) Nonoperating revenues (expenses): Interest income 191,734.86 497,068.00 (305,333.14) (61.4) Interest expense (2,180,939.82) (2,215,376.00) 34,436.18 1.6 Other 26,889.80 - 26,889.80 N/A Total nonoperating revenues (expenses)(1,962,315.16) (1,718,308.00) (244,007.16) (14.2) Transfers in - - - N/A Transfers out (98,908.94) - (98,908.94) N/A Net income (loss)3,688,690.87$ 5,796,867.00$ (2,108,176.13)$ (36.4) ¹Actual 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. ²Miscellaneous expenses include: Bond Insurance Costs, Bank Service Charge, Transponder Materials. ³Depreciation and amortization are not budgeted items. YTD as of October 31, 2011 YTD Variance Capital Asset Activity During the four months ending October 31, 2011, capital asset activities included approximately $101,102 for the purchase of transponders. ORANGE COUNTY TRANSPORTATION AUTHORITY Fiscal Year 2010-11 91 Express Lanes Annual Financial Statements Staff Report Orange County Transportation Authority 550 South Main Street / P.O. Box 14184 / Orange / California 92863-1584 / (714) 560-OCTA (6282) December 16, 2011 To: State Route 91 Advisory Committee From: Kirk Avila, General Manager, 91 Express Lanes Subject: Fiscal Year 2010-11 91 Express Lanes Annual Financial Statements 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 2010-11 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 2010-11 91 Express Lanes Annual Financial Statement. 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 and the financial position at year end. In addition, OCTA is required to obtain an independent auditor’s opinion on the financial statement. 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 fiscal year ended June 30, 20 11. 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 Fiscal Year 2010-11 91 Express Lanes Annual Financial Statements Page 2 United States. The auditors have issued an unqualified opinion on the financial statements, indicating that the statements presents fairly, in all material aspects, the financial position of the 91 Express Lanes Fund , as of June 30, 2011. A copy of the audited financial statements is included as Attachment A. Summary VTD, an independent accounting firm, has audited the 91 Express Lanes financial statements and has issued its unqualified opinion as to the fairness of the financial statements presentation and are free of material misstatement. Attachment A. 91 Express Lanes Fund (An Enterprise Fund of the Orange County Transportation Authority) Financial Statements Year Ended June 30, 2011. ORANGE COUNTY TRANSPORTATION AUTHORITY Fiscal Year 2010-11 91 Express Lanes Annual Financial Statements Attachment A 91 EXPRESSLANES FUND (An Enterprise Fundof the Orange County TransportationAuthority) FINANCIAL STATEMENTS Year Ended June 30,2011 ATTACHMENT A 91 ExpressLanesFund (AnEnterpriseFundoftheOrangeCounty TransportationAuthority) FinancialStatements FortheFiscalYearEndedJune30,2011 Contents IndependentAuditors’Report.........................................................................................................................1 FinancialStatements: StatementofFundNetAssets..........................................................................................................................3 StatementofRevenues,ExpensesandChangesinFundNetAssets......................................................4 StatementofCashFlows...................................................................................................................................5 NotestotheFinancialStatements....................................................................................................................7 1 INDEPENDENTAUDITORS’ REPORT Board of Directors Orange CountyTransportation Authority Orange, California We have audited the accompanying financial statements of the 91 Express Lanes Fund, an enterprise fund of the Orange CountyTransportation Authority(OCTA), as of and for the year ended June 30, 2011, which collectively comprise the 91Express Lanes Fund’sbasic financialstatements as listed in the table of contents. These financial statements are the responsibilityof the 91 Express Lanes Fund’s management. Our responsibility is to express an opiniononthese financialstatements based onour audit. We conducted our auditin accordance with auditingstandards generallyaccepted 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 aboutwhether the financial statements are free of material misstatement. An audit includes consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the 91 Express Lanes Fund’s internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for ouropinion. As discussed in Note 1, the financial statements present only the 91 Express Lanes Fund of OCTA and do not purport to, and do not, present fairly the financial position of OCTA as of June 30, 2011, and the changes in its financial position and cash flows, where applicable, for the year then ended in accordance with accounting principles generallyaccepted in the United States of America. In our opinion, the financial statements referred to previously present fairly, in all material respects, the financial position of the 91 Express Lanes Fund of OCTA as of June 30, 2011, and the changes in financial position, and, where applicable, cash flows thereof for the year then ended in conformity with accounting principles generally accepted in the United States of America. As described in Note 10 to the financial statements, the 91 Express Lanes Fund of OCTA has adopted the provisionsof GASB59,Financial Instruments Omnibus,July1, 2010. In accordance with Government Auditing Standards, we have also issued our report dated October 21, 2011 on consideration of the 91 Express Lanes Fund’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. The report is an integral part of an audit performed in accordance with Government AuditingStandards andshould beconsideredin assessingtheresults ofour audit. Vavrinek, Trine, Day & Co., LLP Certified Public Accountants VALUE THE DIFFEREN CE F R E S N O • L AG U N A H I L L S • PA LO A LTO • P L E A S A N TO N • R A N C H O C U C A M O N GA • S AC R A M E N TO 25231 Paseo De Alicia, Suite 100 Laguna Hills, CA 92653 Tel: 949.768.0833 Fax: 949.768.8408 www.vtdcpa.com 2 The 91 Express Lanes Fund has notpresented a management’s discussion and analysis that accountingprinciples generally accepted in the United States of America has determined is necessary to supplement, although not required tobepartof, thefinancialstatements. Laguna Hills, California October 21, 2011 91 Express Lanes Fund (AnEnterprise Fund of the Orange CountyTransportationAuthority) Statement of Fund Net Assets June 30, 2011 Assets Current Assets: Cashand investments $31,355,334 Receivables: Interest 48,567 Violations, net 6,904,359 Other 1,528,614 Other assets 262,155 Total current assets 40,099,029 Noncurrent Assets: Restricted cashand investments: Cashequivalents 38,933,086 Unamortized debt issuance costs 2,763,663 Capital assets, net: Depreciable and amortizable 148,439,526 Total noncurrent assets 190,136,275 Total Assets 230,235,304 Liabilities Current Liabilities: Accountspayable 3,697,787 Accrued interest payable 2,209,522 Due toother governments 96,127 Unearned revenue 3,714,799 Other liabilities 322,599 Bonds payable - due withinone year 4,980,000 Total current liabilities 15,020,834 Noncurrent Liabilities: Derivative instruments 4,125,329 Bonds payable - due inmore thanone year 147,366,826 Total noncurrent liabilities 151,492,155 Total Liabilities 166,512,989 Net Assets Invested incapital assets, net of related debt 14,727,492 Restricted for: Debt service 6,930,939 Capital 10,135,155 Operating reserves 3,232,200 Unrestricted 28,696,529 Total Net Assets $63,722,315 See accompanying notes tothe financial statements. 3 91 Express Lanes Fund (AnEnterprise Fund of the Orange CountyTransportationAuthority) Statement of Revenues, Expenses and Changes inFund Net Assets For the Year Ended June 30, 2011 Operating revenues: Tolls, fees, and fines $41,245,590 Operating expenses: Management and operational services 6,483,400 Administrative overhead 1,683,269 Other operating expenses 152,334 Insurance claims and premiums 333,268 Professional services 3,809,813 General and administrative 596,084 Depreciationand amortization 9,323,514 Total operating expenses 22,381,682 Operating income 18,863,908 Nonoperating revenues (expenses): Investment earnings 758,451 Investment gainonderivative instruments 10,724,981 Interest expense (10,080,363) Other 354,298 Total nonoperating revenues (expenses)1,757,367 Income before transfers 20,621,275 Transfers toother OCTA funds (884,318) Change innet assets 19,736,957 Total net assets- beginning 43,985,358 Total net assets- ending $63,722,315 See accompanying notes tothe financial statements. 4 91 Express Lanes Fund (AnEnterprise Fund of the Orange CountyTransportationAuthority) Statement of CashFlows For the Year Ended June 30, 2011 Cashflows fromoperating activities: Receiptsfromcustomers and users $39,812,127 Paymentstosuppliers (11,910,469) Paymentsfor OCTA interfund services used (1,683,269) Miscellaneousrevenue received 354,622 Net cashprovided by operating activities 26,573,011 Cashflows fromnoncapital financing activities: Transfers toOCTA funds (884,318) Repayment of advances fromOCTA funds (9,865,561) Net cashused for noncapital financing activities (10,749,879) Cashflows fromcapital and related financing activities: Principal payment onlong-termdebt (4,740,000) Interest paid onlong-termdebt (15,596,875) Acquisitionand constructionof capital assets (2,361,293) Net cashused for capital and related financing activities (22,698,168) Cashflows frominvesting activities: Terminationpayment for derivative instrument (4,821,334) Interest received 1,889,783 Net cashused for investing activities (2,931,551) Net decrease incashand cashequivalents (9,806,587) Cashand cashequivalentsat beginning of year 80,095,007 Cashand cashequivalentsat end of year $70,288,420 Noncashcapital, financing and investing activities: Interest expense incurred onadvances fromother OCTA funds $(323,831) Investment gainonderivative instruments $10,724,981 Amortizationof bond premium $(252,542) Amortizationof bond deferred charges $(1,067,806) See accompanying notes tothe financial statements. 5 91 Express Lanes Fund (AnEnterprise Fund of the Orange CountyTransportationAuthority) Statement of CashFlows (Continued) For the Year Ended June 30, 2011 Reconciliationof operating income tonet cash provided by operating activities: Operating income $18,863,908 Adjustmentstoreconcile operating income tonet cash provided by operating activities: Depreciationexpense 1,992,669 Amortizationof Franchise Agreement 7,330,845 Amortizationof cost of issuance 142,335 Miscellaneous 354,622 Change inassetsand liabilities: Violations receivables, net (210,204) Other receivables (806,453) Other assets 77,050 Accountspayable (808,773) Due toother governments 53,818 Unearned revenue (407,322) Other liabilities (9,484) Total adjustments 7,709,103 Net cashprovided by operating activities $26,573,011 Reconciliationof cashand cashequivalentstostatement of net assets: Cashand investments $31,355,334 Restricted cashand investments 38,933,086 Total cashand cashequivalents $70,288,420 See accompanying notes tothe financial statements. 6 91 ExpressLanesFund (AnEnterpriseFundofthe Orange County TransportationAuthority) Notesto theFinancial Statements Year Ended June 30,2011 7 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. The 91 Express Lanes is a toll facility located on a 10-mile segment of the Riverside Freeway/StateRoute(SR)91 betweentheOrange/RiversideCounty lineandthe Costa Mesa Freeway/SR 55. 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. Pursuant to the Franchise Agreement, Caltransretainslegaltitletotherealproperty componentsofthetollfacility. OCTA purchased the franchise interest for $207,500,000, consisting of cash of $72,500,000 and certain assets and the assumption of certain liabilities. The purchase was enabled by State Assembly Bill 1010 (Correa), which was passed by the California legislature and signed by the governor in September2002. Thelegislation providedtheauthority for OCTA to collect tollsand pay related financing costs no later than 2030 and eliminated noncompete provisions in the Franchise Agreement for needed improvements on SR 91. The passage of Senate Bill 1316 (Correa) in August 2008 approved extending the 91 Express Lanes toll facility along the SR 91 into Riverside County.The billalso allows the extension of the Franchise Agreement toa date no laterthanDecember31,2065. These financial statements include only theactivities of the91 ExpressLanesFund,an enterprise fundofOCTA. ThesefinancialstatementsarenotintendedtopresenttheactivitiesofOCTA. 2.Summary ofSignificantAccounting 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 financialreporting principles. BasisofAccounting The financial statements ofthe 91 ExpressLanes Fundare reportedusing theeconomic 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, andunearned tolls are reportedas unearned revenue. Toll revenue is recognized whenthecustomersutilizethetollroadfacility. 91ExpressLanesFund Notes tothe Financial Statements Year EndedJune30,2011 8 Enterprise funds distinguish operating revenues and expenses from nonoperating items. Operating revenuesand expensesgenerally 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 the91 ExpressLanesFundincludethecostofservices,administrativeexpenses,anddepreciation and amortization on capital assets. All revenues and expenses not meeting this definition are reportedasnonoperating revenuesandexpenses. Private-sector standards of accounting and financial reporting issued prior to December 1, 1989, generally are followed in enterprise fund financial statements to the extent that those standards do not conflict with or contradict guidance of GASB. The 91 Express Lanes Fund has elected not tofollow subsequentprivate-sectorguidance. When both restricted and unrestricted resources are available for use, it is the 91 Express Lanes Fund’spolicy touserestrictedresourcesfirstandthenunrestrictedresourcesasthey areneeded. CashandInvestments The 91 Express Lanes Fund participates in OCTA’s Commingled Investment Pool. OCTA maintains cash and investments in accordance with the Annual Investment Policy (AIP) adopted initially by OCTA’s Board of Directors (Board) on May 8, 1995, and most recently amended May 9, 2011. The AIP complieswith, or is more restrictive than, the California Government Code (Code). At June 30, 2011, the investment portfolios were maintained at Union Bank as custodial bank. OCTA’s Commingled Investment Pool is managed by four private sector investment managers. Separateinvestmentmanager accountsaremaintainedfor theproceeds of bondissues, 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, mortgage and asset-backed securities and corporatenotesarecarriedatfairvaluebasedonquotedmarketprices,exceptforsecuritieswitha 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. Commercialpaperiscarriedatamortizedcost(whichapproximatesfairvalue). The AIP requires that assets in the portfolio consist of the following investments, with maximum permissible concentrations based on book value, and is more restrictive than applicable state statutesforthefollowing investmenttypes: 91ExpressLanesFund Notes tothe Financial Statements Year EndedJune30,2011 9 OCTANotesandBonds(25%) Notes and bonds issued by OCTA, including notes and bonds payable solely out of the revenues from a revenue-producing property owned, controlled or operated by OCTA or by a department, board, agency or authority of OCTA which may bear interest at a fixed or floating rate. U.S.Treasuries(100%) Direct obligations of the United States of America and securities which are fully and unconditionally guaranteed as to the timely payment of principal and interest by the full faithandcreditoftheUnitedStatesofAmerica. U.S. Treasury coupon and principal Separate Trading of Registered Interest and Principal of Securities (STRIPS) and Treasury Inflation Protected Securities (TIPS) are permitted investmentspursuanttotheAIP. FederalInstrumentality Securities(GovernmentSponsoredEnterprises)(100%) Debentures, discount notes, callable and step-up securities, with a final maturity not exceeding fiveyearsfrom thedateoftradesettlementissuedby thefollowing: FederalHomeLoanBank (FHLB) FederalHomeLoanMortgageCorporation(FHLMCorFreddieMac) FederalNationalMortgageAssociation(FNMAorFannieMae) FederalFarm CreditBank (FFCB) FederalAgriculturalMortgageCorporation(FarmerMac) FederalAgencies(100%) Mortgage-backed securities and debentures with a final maturity not exceeding five years from thedateoftradesettlementissuedby thefollowing: GovernmentNationalMortgageAssociation(GNMAorGinnieMae) SmallBusinessAdministration(SBA) Export-ImportBank oftheUnitedStates(EXIMBANK) MaritimeAdministration WashingtonMetroArea Transit U.S.DepartmentofHousing &UrbanDevelopment FederalDepositInsuranceCorporation(FDIC) NationalCreditUnionAdministration(NCUA) Any Federal Agency and U.S. Government Sponsored Enterprise security not specifically mentionedaboveisnota permittedinvestment. 91ExpressLanesFund Notes tothe Financial Statements Year EndedJune30,2011 10 State ofCaliforniaandLocalAgency Obligations(25%) Registered statewarrants,treasury notes or bondsof the Stateof California andbonds,notes, warrants or other evidences of indebtedness of any local agency, other than OCTA, of the State, including bonds payable solely out of revenues from a revenue producing property owned,controlled, or operatedby thestateorlocalagency orby a department,board,agency or authority of the State or local agency. Such obligations must be issued by an entity whose general obligation debt is rated at least A-1 or better by two of the three Nationally Recognized StatisticalRating Organizations (NRSROs) for short-term obligations, or A or the equivalentforlong-term debt. OCTAmay also purchasedefeased stateand local obligations as long asthe obligations have been legally defeasedwith U.S. Treasury securitiesand such obligations mature or otherwise terminatewithinfiveyearsofthedateofpurchase. Public agency bonds issued for private purposes (industrial development bonds) are specifically excludedasallowableinvestments. BankersAcceptance (30%) Mustbeeligibleforpurchaseby theFederalReserveSystem. Mustberatedby atleasttwo of theNRSROswithat leastA-1 or the equivalent for short- term deposits. May notexceedthe5 percentlimitonany onecommercialbank. Maximum Term:180 days.(Code) CommercialPaper(25%) MustberatedatleastA-1 ortheequivalentby twoofthethreeNRSROs. Mustbe issuedby corporations rated at least A- or the equivalent rating by a NRSRO for issuer’sdebt,otherthancommercialpaper. Must be issued by corporations organized and operating within the United States and having totalassetsinexcessof$500 million. Must not represent more than 10 percent of the outstanding paper of the issuing corporation. Maximum Term:180 days.(Code270 days) 91ExpressLanesFund Notes tothe Financial Statements Year EndedJune30,2011 11 Negotiable CertificatesofDeposit(30%) Must be issued by a nationally or state-chartered bank or state or federal association, or by a state licensed branch of a foreign bank, which has been rated by at least two of the NRSROswithatleastA-1 ortheequivalentforshort-term deposits. Maximum Term:270 days. Repurchase Agreements(75%) Repurchase agreements collateralized by U.S. Treasuries or Agency securities as defined in the AIP withany registeredbroker-dealersubject to theSecurities Investors Protection Act or any commercial banks insured by the FDIC so long as at the time of the investment such dealer (or its parent) has an uninsured, unsecured and unguaranteed obligation rated P-1 short-term or A2 long-term or better by Moody’s Investor Service (Moody's), and A-1 short- term orAlong-term orbetterby Standard&Poor'sCorporation(S&P),provided: A Public Securities Association (PSA) master repurchase agreement and a tri-party agreement, if applicable, representing a custodial undertaking in connection with a master repurchase agreement, which governs the transaction and has been signed by OCTA. The securities are held free and clear of any lien by OCTA's custodian or trustee or an independent third party acting as agent (Agent) for the custodian or trustee, and such third party is (i) a Federal Reserve Bank, or (ii) a bank which is a member of the FDIC and which has combined capital, surplus and undivided profits of not less than $50 million and the custodian or trustee shall have received written confirmation from such third party that it holds such securities, free and clear of any lien, as agent for OCTA'scustodianortrustee. A perfected first security interest under the Uniform Commercial Code, or book entry proceduresprescribedat31 C.F.R.306.1 etseq.or31 C.F.R.350.0 etseq.insuchsecurities iscreatedforthebenefitofOCTA'scustodianortrusteeandOCTA. The Agent provides OCTA's custodian or trustee and OCTA with valuation of the collateral securities no less frequently than weekly and will liquidate the collateral securities if any deficiency in the required 102 percent collateral percentage is not restoredwithintwobusinessdaysofsuchvaluation. Reverse purchaseagreementsare notpermitted unless usedasa permitted investment in LAIF. Maximum Term:30 days.(Code1 year) 91ExpressLanesFund Notes tothe Financial Statements Year EndedJune30,2011 12 Medium-Term Maturity Corporate Securities(30%) CorporatesecuritieswhichareratedA-orbetterby twoofthethreeNRSROs. Must be issued by corporations organized and operating within the United States or by depository institutions licensed by the United States or any state and operating within theUnitedStates. Medium-term notes must not represent more than ten percent (10%) of the issue in the case of a specific public offering. This limitation does not apply to debt that is “continuously offered” in a mode similar to commercial paper, i.e. medium-term notes (MTNs). Under no circumstance may any one corporate issuer represent more than 5 percentoftheportfolio. Maximum Term: 5 years. (Code) Money MarketFunds(20%) Shares of beneficial interest issued by diversified management companies (commonly called money marketfunds)which: MustberatedAAA(ortheequivalenthighestranking)by twoofthethreeNRSROs. May notrepresentmorethan10 percentofthemoney marketfund’sassets. OtherMutualFunds(20%) Shares of beneficial interest issued by diversified management companies (commonly called mutualfunds)which: MustberatedAAA(ortheequivalenthighestranking)by twoofthethreeNRSROs. May notrepresentmorethan10 percentofthefund’sorpool’sassets. Mortgage orAsset-BackedSecurities(20%) Any mortgagepass-throughsecurity,collateralizedmortgageobligation,mortgage-backedor other pay-through bond, equipment lease-backed certificate, consumer receivable pass- throughcertificate,orconsumerreceivable-backedbondwhich: IsratedAAAortheequivalent(CodeAA)by a NRSRO. Is issued by an issuer having at leastan A or equivalent rating by a NRSRO for its long- term debt. Maximum Term: Fiveyearstatedfinalmaturity.(Code) 91ExpressLanesFund Notes tothe Financial Statements Year EndedJune30,2011 13 InvestmentAgreements(100%) Investment agreements must be approved and signed by OCTA's Treasurer. Investment agreements are permitted with any bank, insurance company or broker/dealer, or any corporationif,atthetimeofsuchinvestment: 1)Such bank has an unsecured, uninsured and unguaranteed obligation rated long-term Aa2 orbetterby Moody'sandAAorbetterby S&P. 2)Such insurance company or corporation has an unsecured, uninsured and unguaranteed claimspayingability ratedlong-term Aaaby Moody'sandAAAby S&P. 3)Such bank or broker/dealer has an unsecured, uninsured and unguaranteed obligation rated long-term A2 or better by Moody's and A or better by S & P (and with respect to such broker/dealer rated short-term P-1 by Moody's and A-1 by S & P); provided, that such broker/dealer or A2/A rated bank also collateralize the obligation under the investing agreement with U.S. Treasuries, Government National Mortgage Association securities, Federal National Mortgage Association securities or Federal Home Loan MortgageAssociationsecuritiesmeeting thefollowing requirements: a)Thesecuritiesareheldfreeandclearofany lienby OCTA'scustodianortrusteeoran independent third party acting as agent (Agent) for the custodian or trustee, and such third party is (i)a FederalReserve Bank, or (ii)a bank which isa member of the Federal Deposit Insurance Corporation andwhich has combined capital, surplusand undividedprofits of not less than $50 million and the custodian or trustee shall have received written confirmation from such third party that itholds such securities, free andclearofany lien,asagentforOCTA'scustodianortrustee;and b)A perfected first security interest under the Uniform Commercial Code, or book entry proceduresprescribedat31 C.F.R.306.1 etseq.or31 C.F.R.350.0 etseq.insuch securitiesiscreatedforthebenefitofOCTA'scustodianortrusteeandOCTA;and c)The Agent provides OCTA's custodian or trustee and OCTA with valuation of the collateral securities no less frequently than weekly and will liquidate the collateral securities if any deficiency in the required 102 percent collateral percentage is not restoredwithintwobusinessdaysofsuchvaluation. The agreement shall include a provision to the effect that if any rating of any such bank, insurance, broker-dealer or corporation is downgraded below a minimum rating to be establishedatthe time theagreementis executed,OCTA shallhave theright toterminate suchagreement. 91ExpressLanesFund Notes tothe Financial Statements Year EndedJune30,2011 14 State ofCalifornia LocalAgency InvestmentFund(LAIF) LAIF is a pooled fund managed by the State Treasurer referred to in Section 16429.1 of the Code. All securities are purchased under the authority of the Code Section 16430 and 16480.4. LAIF hasa $40millionmaximum portfoliopercentageperentity. Orange County Treasury InvestmentPool(OCIP) The OCIP is a pooled fund managed by the Orange County Treasurer and is comprised of two funds, the Money Market Fund and the Extended Fund. The Money Market Fund is invested in cash equivalent securities and is based on the investment guidelines detailed in the Code section 53601.7. The Extended Fund is for cash requirements past one year and is based on the Code Sections 53601 and 53635. OCIP has a $40 million maximum portfolio percentageperentity. California AssetManagementProgram (CAMP)(10%) CAMP is a program for the investment of bond and certificates of participation proceeds only. CAMP investmentsmustberatedAAorbetterby twoofthethreeNRSROs. Variable andFloating Rate Securities(30%) Variable and floating rate securities are restricted to investments in securities with a final maturity of not to exceed five years as described above, must utilize traditional money market resetindices such as U. S.Treasury bills, FederalFunds, commercialpaper or London Interbank OfferedRate (LIBOR),andmustmeetallminimum creditrequirementspreviously detailed in the AIP. Investments in floating rate securities whose reset is calculated using morethanoneoftheaboveindicesarenotpermitted,i.e.dualindexnotes. BankDeposits(5%) Bank deposits in California banks which have a minimum short-term rating of A-1 by S & P and a minimum short-term rating of P-1 by Moody’s. OCTA’s Treasurer shall draft and executea contractdescribing provisionsforbank deposits. Derivatives(5%) Derivatives are to be used as a tool for bonafide hedging investments only where deemed appropriate. Derivativesshallnotbeusedforthepurposeofinterestratespeculation. Derivative products in any of the eligible investment categories listed above may be permitted. OCTA’s Treasurer has the sole responsibility for determining which prospective investments are derivatives. Each prospective investment in a derivative product must be documented by the Treasurer as to the purpose and specific financial risk being hedged. 91ExpressLanesFund Notes tothe Financial Statements Year EndedJune30,2011 15 Eachsuchinvestmentmustbeapprovedby theFinanceandAdministrationCommitteeprior toentering intosuchinvestment. No investments shall be permitted that have the possibility of returning a zero or negative yield if held to maturity. In addition, the investment in inverse floaters, range notes, strips derived from mortgage obligations, step-up notes and dual index notes are not permitted investments. All investments are subject to a maximum maturity of five years, unless specific direction to exceedthelimitisgivenby theBoardandaspermittedby theCode. OCTApolicy is to invest only in highquality instruments as permittedby the Code, subject to the limitationsoftheAIP. Outside portfolio managers must review, on an ongoing basis, the portfolios they manage (including bond proceeds portfolios) to ensure compliance with OCTA's diversification guidelines,withmaximum permissibleconcentrationsbasedonbook valueasfollows: Issuer/Counter-Party Diversification Guidelines For All Securities Except Federal Agencies, Federal Instrumentalities, Investment Agreements, Repurchase Agreementsand 91 ExpressLanesDebt 5% for any one corporation, bank, local agency, special purpose vehicle or other corporatenameforoneormoreseries ofsecurities. Issuer/Counter-Party Diversification Guidelines For Federal Agencies, Federal InstrumentalitiesandRepurchase Agreements 35% forany oneFederalAgency orFederalInstrumentalities. 50% for any one repurchase agreement counter-party name if the maturity/term is 7 days. 35% for any one repurchase agreement counter-party name if the maturity/term is >7 days. Issuer/Counter-Party DiversificationGuidelinesforOCTA’s91 ExpressLanesDebt OCTA can purchase all or a portion of the Toll Road Revenue Refunding Bonds (91 Express Lanes) Series B Bonds maturing December 15, 2030 providing the purchase does not exceed 25% oftheMaximumPortfolio. CashandCashEquivalents For the purpose of the statement of cash flows, OCTA considers all short-term investments with an initialmaturity of three months or less to be cash equivalents. All deposits, commercialpaper, 91ExpressLanesFund Notes tothe Financial Statements Year EndedJune30,2011 16 money market mutual funds, certificates of deposit, and the91 Express Lanes Fund’s share of the OCTACommingledInvestmentPoolrepresentcashandcashequivalentsforcashflow purposes. RestrictedInvestments 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 $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, investmentagreements,OrangeCounty InvestmentPoolandvariableandfloating ratesecurities. Receivables Violations receivable represents an estimate of the total outstanding unpaid violations that the 91 Express Lanes Fund anticipates to collect, net of an allowance for uncollectible accounts of $837,812 at June 30, 2011. This estimate is based upon a twelve-month average of collections on violations with a due date of 90 days or less. For unpaid violations exceeding 90 days, this estimate is based upon an approximate 3-year average collections. An estimated $5.3 million representsreceivablesnotexpectedtobecollectedwithinone year. The91 ExpressLanesutilizes anoutsidecollectionagency toassistintherecovery ofunpaidviolationsexceeding 90 days. 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 allowanceforuncollectibleaccountsof$592,811 atJune30,2011. OtherAssets Otherassetsincludeprepaidexpensesandrefundabledeposits. UnamortizedDebtIssuance Costs Unamortized debt issuance costs represent costs associated with issuing the 2003 Toll Road Revenue Refunding Bonds, issued to refund $135,000,000 of taxable debt, and are deferred and amortizedoverthelifeofthe2003 TollRoadRevenueRefunding Bonds. 91ExpressLanesFund Notes tothe Financial Statements Year EndedJune30,2011 17 CapitalAssets Capital assets include the toll facility franchise, improvements, equipment, computer hardware, software, furniture and fixtures, and transponders. Capital assets are defined by the 91 Express LanesFundasassetswithaninitial,individualcostofmorethan$5,000 anda usefullifeinexcess of one year. It is also the 91 Express Lanes Fund’spolicy 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 addvaluetotheassetormaterially extendassetlivesarenotcapitalized. Capital assetsare depreciated using the straight-line method over the following estimated useful lives: CapitalAssetType UsefulLife Improvements 10-30years Equipment,furniture,andfixtures 3-10 years Computerhardwareandsoftware 3-5 years Transponders 5 years The toll facility franchise is amortized over the remaining life of the Franchise Agreement throughDecember2030. InterestRate Swaps Asa meansoflowering borrowing costson variableratedebtcomparedtofixedratebondsatthe time of issuance in November 2003, OCTA entered into two parity interest rate swaps totaling $100,000,000. The parity swaps were 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 in the amount of $75,000,000. The agreement for the remaining swap is recorded at fair value. Changes in fair value of derivative instruments affect investment earnings or losses. As of June 30, 2011 the derivative instrument of the 91 Express Lanes Fund is considered ineffective. Refer tonote5. RiskManagement 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 claimsareresolvedby OCTAandareanexpenseofthe91 ExpressLanesFund. 91ExpressLanesFund Notes tothe Financial Statements Year EndedJune30,2011 18 NetAssets Net assets represent the difference between assets and liabilities and are classified into three categories: Invested in capital assets, net of related debt -Reflects net assets of the 91 Express Lanes Fund invested in capital assets, net of related debt. These net assets are not accessible for other purposes. Restricted net assets -Represents net assets not accessible for general use, with the use subject to restrictions enforceable by third parties. The Statement of Net Assets includes restricted net assets for the portion of debt attributable to unspent proceeds, restricted by the2003 Toll Road Revenue Refunding Bonds Master Indenture of Trust for debt service, capital, and operating expenses. Unrestricted netassets-Representsnetassetsavailableforgeneraluse. Use ofEstimates 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 resultscoulddifferfrom thoseestimates. 3.CashandInvestments Cashandinvestmentsarecomprisedofthefollowing atJune30,2011: Deposits: Petty cash $550 Deposits 338,682 Totaldeposits 339,232 Investments: WithOCTACommingledInvestmentPool 30,990,644 Withtrustee 38,958,544 Totalinvestments 69,949,188 Totalcashandinvestments $70,288,420 91ExpressLanesFund Notes tothe Financial Statements Year EndedJune30,2011 19 Totaldepositsandinvestmentsarereportedinthefinancialstatementsas: Unrestrictedcashandinvestments $31,355,334 Restrictedcashandinvestments: Cash equivalents 38,933,086 Totalcashandinvestments $70,288,420 AsofJune30,2011,the91 ExpressLanesFundhadthefollowing investments: Investment FairValue Principal Interest Rate Range Maturity Range Weighted Average Maturity (Years) OCTA Commingled Investment Pool $ 30,990,644 $ 30,353,483 Discount, 0.01%-8.0% 7/1/11- 6/23/16 1.98 Heldby trustee: Commercialpaper 25,565,188 25,565,188 0.40%7/15/11 0.04 Money marketmutualfunds 26,002 26,002 0.00%7/1/11 1 Day Certificatesofdeposit 13,367,354 13,367,354 0.10%7/5/11 0.01 Totalinvestments $ 69,949,188 $ 69,312,027 InterestRate Risk OCTA 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 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 restrictedfordebtservicereservesare investedinaccordancewiththematurity provisionoftheir specificindenture,whichmay extendbeyondfiveyears. As of June 30, 2011, the 91 Express LanesFund participated in OCTA’s Commingled Investment Pool which had asset-backed securities totaling $65,793,349. The underlying assets are consumer receivables that include credit cards, auto and home loans. The securities have a fixed interest rateandareratedAAAby atleasttwoofthethreeNRSROs. 91ExpressLanesFund Notes tothe Financial Statements Year EndedJune30,2011 20 AsofJune30,2011,OCTA’sCommingledInvestmentPoolhadthefollowing variableratenotes: Investment FairValue Coupon Multiplier Coupon Reset Date AmericanExpress $ 949,865 LIBOR+170 basis points Monthly Bank ofAmerica 1,002,690 LIBOR+20basis points Quarterly Citigroup 677,348 LIBOR+85basis points Quarterly Citigroup 421,445 LIBOR+33basis points Quarterly Eaton Corp 500,585 LIBOR+33basis points Quarterly Goldman Sachs 1,001,390 LIBOR+25basis points Quarterly Goldman Sachs 644,605 LIBOR+100 basis points Quarterly Morgan Stanley 848,452 LIBOR+98basis points Quarterly Morgan Stanley 1,026,720 LIBOR+250 basis points Quarterly NCUANotes 470,000 LIBOR+2basis points Monthly NewYork Life 1,000,270 LIBOR+26basis points Quarterly PACCAR Financial 633,522 LIBOR+45basis points Monthly Totalvariable rate notes $ 9,176,892 The 91 Express Lanes Fund is invested in a pay-fixed, receive-variable interest rate swap with a notional amounttotaling $25,000,000.The91 Express Lanesmakes semiannual fixedpayments to the counterparty of 4.06227% and receives monthly variable payments based on 67% of LIBOR if LIBOR is equal to or greater than 4.0% or the Securities Industry Financial Markets Association (SIFMA) Index if LIBOR is less than 4.0%. This interest rate swap was executed in November 2003 and matures in December 2030. At June 30, 2011, the interest rate swap hada negative fair valueof$4,125,329. CustodialCreditRisk 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. OCTA’s investment policy requires that a third party bank custody department hold all securities owned by OCTA. All trades are settled on a delivery versus payment basis through OCTA’s safekeeping agent. At June 30, 2011, OCTA did not have any deposits or securities exposed to custodial credit risk and therewasnosecuritieslending. 91ExpressLanesFund Notes tothe Financial Statements Year EndedJune30,2011 21 CreditRisk The AIP sets minimum acceptable credit ratings for investments from any of the three nationally recognized rating services S & P, Moody’s, and Fitch Ratings (Fitch). For an issuer of short-term debt, the rating mustbe no less than A-1 (S &P), P-1 (Moody’s), or F-1 (Fitch), whilean issuer of long-term debt must be rated no less than an “A” by two of the three NRSROs. LAIF and OCTA’sCommingledInvestmentPoolarenotrated. 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 June30,2011. (NRmeansNotRated): Investments S&P Moody’s Fitch % of91 Express LanesPortfolio OCTACommingledInvestmentPool NR NR NR 44.30% Heldby trustee: Commercialpaper A-1+P-1 NR 36.55% Money market mutual funds AAA Aaa AAA 0.04% Certificatesofdeposit A-1 P-1 F1+19.11% Total 100.00% At June 30, 2011, JP Morgan Chase Bank, N.A, the counterparty for the pay-fixed interest rate swap Series 2003-B-2 was rated AA- by S & P, Aa1 by Moody’s, and AA- by Fitch. In addition, the 91 Express Lanes investment derivative instrument was not in an asset position at June30,2011. Thus,the91 ExpressLaneswasnotexposedtolossduetocreditrisk. As of June 30, 2011, the 91 Express LanesFund participated in OCTA’s Commingled Investment Pool which held one investment in Lehman Brothers Holding Inc. medium-term notes. The investment had a $1,000,000 par maturing January 24, 2013. On September 15, 2008, Lehman BrothersHolding Inc.filedforbankruptcy. AtJune30,2011,themarketvalueofthesecurity was 26.50% ofpar. ConcentrationofCreditRisk AtJune30,2011,OCTAdidnotexceedtheAIP maximum concentrationsasstatedbelow: Issuer/Counter-Party Diversification Guidelines For All Securities Except Federal Agencies, Federal Instrumentalities, Investment Agreements, Repurchase Agreementsand 91 ExpressLanesDebt 5% for any one corporation, bank, local agency, special purpose vehicle or other corporatenameforoneormoreseries ofsecurities. 91ExpressLanesFund Notes tothe Financial Statements Year EndedJune30,2011 22 Issuer/Counter-Party Diversification Guidelines For Federal Agencies, Federal InstrumentalitiesandRepurchase Agreements 35% forany oneFederalAgency orFederalInstrumentalities. 50% for any one repurchase agreement counter-party name if the maturity/term is 7 days. 35% for any one repurchase agreement counter-party name if the maturity/term is > 7 days. Issuer/Counter-Party DiversificationGuidelinesforOCTA’s91 ExpressLanesDebt OCTA can purchase all or a portion of the Orange County Transportation Authority’s Toll Road Revenue Refunding Bonds (91 Express Lanes) Series B Bonds maturing December15,2030providing thepurchasedoesnotexceed25% oftheMaximum Portfolio. Thefollowing isa summary oftheconcentration of creditrisk by issuerasa percentageofthefair valueofthe91ExpressLanesFund’sportfolioatJune30,2011: Issuer Amount % of91 Express LanesPortfolio GeneralElectricCap Corp (Commercial paper)$ 25,565,188 36.55% Bank oftheWest (Certificatesofdeposit)13,367,354 19.11% InvestmentinState InvestmentPool OCTA is a voluntary participant in LAIF which is regulated by the California Government Code under the oversight of the Treasurer of the State of California. The fair value of OCTA’s investmentin thispool is reported in theaccompanying financial statementsbasedupon OCTA’s pro-rata share of the fair value provided by LAIF for the entire LAIF portfolio (in relation to the amortizedcostofthatportfolio). Thebalanceavailableforwithdrawalisbasedontheaccounting recordsmaintainedby LAIF,whicharerecordedonanamortizedcostbasis. 91ExpressLanesFund Notes tothe Financial Statements Year EndedJune30,2011 23 4.CapitalAssets Capitalassetactivity forthe91 ExpressLanesFundfortheyearendedJune30,2011 isasfollows: Beginning Balance Increases Decreases Ending Balance Capitalassets,beingdepreciated andamortized: Tollfacility franchise $ 205,263,668 $ - $ - $ 205,263,668 Improvements 2,827,450 381,081 - 3,208,531 Communicationsequipment 5,602,202 -- 5,602,202 Computer hardware and software 1,773,731 1,441,282 - 3,215,013 Transponders 4,498,852 538,930 474,987 4,562,795 Equipment, furnitureand fixtures 162,371 -5,422 156,949 Totalcapitalassets, being depreciatedandamortized 220,128,274 2,361,293 480,409 222,009,158 Lessaccumulateddepreciation andamortization for: Tollfacility franchise (54,981,340)(7,330,845)- (62,312,185) Improvements (845,947)(150,768)- (996,715) Communicationsequipment (4,551,799)(738,231)- (5,290,030) Computer hardware and software (1,116,515)(529,416)- (1,645,931) Transponders (3,158,463)(554,969) (474,987) (3,238,445) Equipment, furnitureand fixtures (72,139)(19,285) (5,098)(86,326) Totalaccumulateddepreciation andamortization (64,726,203)(9,323,514)(480,085)(73,569,632) Totalcapitalassets, being depreciatedandamortized,net $ 155,402,071 $ (6,962,221)$ 324 $ 148,439,526 5.InterestRate Swaps Asa meansoflowering borrowing costson variableratedebtcomparedtofixedratebondsatthe time of issuance in November 2003, OCTA entered into two parity interest rate swaps totaling $100,000,000 in connection with its $195,265,000 Toll Road Revenue Refunding Bonds. $95,265,000 was issued on a fixed ratebasisand $100,000,000 was issued on a variable rate basis. 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 91ExpressLanesFund Notes tothe Financial Statements Year EndedJune30,2011 24 counterparty was Lehman Brothers Special Funding Incorporated (Lehman Brothers). 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 rateswap betweenOCTAandBearStearnsCapitalMarketsIncorporated. On November 23, 2005, Lehman Brothers Holding Inc. named Lehman Brothers Commercial Bank (LBCB) as the counterparty for the Series 2003-B-1 interest rate swap replacing Lehman Brothers Special Financing Inc. On September 15, 2008, Lehman Brothers Holding Inc. declared bankruptcy. OnOctober2,2008,OCTAprovideda NoticeofEventofDefaultandReservationof Rights letter to Lehman Brothers Special Financing and LBCB regarding the investment rating downgrade and missed counterparty payments. Since LBCB’s Event of Default, OCTA had not remittedpaymenttoLBCBaspartoftheswap agreement. In February 2009, LBCB changed its name to Woodlands Commercial Bank (Woodlands). The net amount owed between OCTA and Woodlands totaled approximately $6.6 million through February 2011. OnMarch15,2011,OCTAterminatedtheSeries2003-vB-1 swap andremittedthe net amount owed to the counterparty for unpaid swap payments. An investment gain of $9,932,418wasrecognizedasa resultofthetermination. The fair value balances and notional amounts of derivative instruments outstanding at June 30, 2011, and the changes in fair value of such derivative instruments for the year then endedareasfollows: Changesin FairValue Fair Value at June30,2011 Classification Amount Classification Amount Notional Investment derivatives- Pay-fixedinterest rate swaps: Series2003-B-1 Investment Gain $ 9,932,418 Investment $ -$ - Series2003-B-2 Investment Gain $ 792,563 Investment $(4,125,329)$25,000,000 $10,724,981 $(4,125,329)$25,000,000 In the prior fiscal year, the 91 Express Lanes Fund determined that the pay-fixed interest rate swaps classified as investment derivative instruments did not meet the criteria for effectiveness. Accordingly, an adjustment was made to record the accumulated negative changes in fair value of the swaps. The increase in the fair value of the swaps in fiscal year 2011 of $10,724,981 is reportedasaninvestmentgainonderivativeinstrumentsfortheyearendedJune30,2011. The fair values of the interest rate swaps were estimated using proprietary methodologies developed by DerivActiv, LLC (DerivActiv). The pricing valuation was conducted by using the executed trade confirmations for the swap and modeling the trades in DerivActiv’s pricing 91ExpressLanesFund Notes tothe Financial Statements Year EndedJune30,2011 25 system using the rate structure contained in the confirmation and ISDA agreement. DerivActiv utilizedpricing levelsfrom Bloomberg FinancialatthemarketcloseonJune30,2011. Terms The bonds and the related parity swap agreement mature on December 15, 2030. The parity swap was entered into at the same time the bonds were issued (November 2003). Starting in fiscal year2022, the notional amount of the parity swap declines and the principal amount of the associated bonds declines by an identical amount. Under the parity swap, OCTA pays the counterparty a fixedpayment of 4.06227% and the counterparty paysOCTAa floating rate equal to 67% of one month LIBOR index if one month LIBOR index is equal to or greater than 4.0% or theSIFMAIndexifonemonthLIBORislessthan4.0%. 6.BondsPayable Taxable SeniorSecuredBonds 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 straightlinebasis. TollRoadRevenue 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-1 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”)wereissuedasadjustableratebonds. 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 requiredby the Indenture, the interest rate was converted to a Long Term Interest Rate equal to the OCIP Rate, or 3.85%. The Series 2003-B Bonds were subject to mandatory tender for repurchase by or for the benefit of OCTA on December 19, 2010. On December 20,2010,OCTA entered into a new transaction with OCIP for the Series 2003-B Bonds ata1.55% rate. TheSeries2003-BBondshavea mandatory tenderdateofAugust15,2013. 91ExpressLanesFund Notes tothe Financial Statements Year EndedJune30,2011 26 Asummary ofthetermsoftheTollRoadRevenueRefundingBondsisasfollows: Issuancedate 11/12/03 Originalissueamount $195,265,000 Cashreserverequirements $38,019,585 * Cashreservebalance $38,933,086 Interestrate 1.55% to5.375%** Maturity December2030 Principalpaymentdate August15 Currentbalance $165,685,000 Unamortizedpremium $4,903,511 Deferredamountonrefunding ($18,241,685) *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, 2011, all reserve requirements have been satisfied. ** Series 2003-B Bonds were issued as variable rate bonds with a floating-to-fixed interest rate swap transaction in place. The swap for the $75,000,000 Series 2003-B-1 Bonds was terminated on March 15, 2011. The $25,000,000 Series 2003-B-2 Bonds was swapped to a fixed rate of 4.06227%. Refertointerestrateswap descriptioninNote5. Annualdebtservicerequirementsonthetax-exemptbondsasofJune30,2011,areasfollows: Yearending June30 Principal Interest Total 2012 $ 4,980,000 $5,754,968 $ 10,734,968 2013 5,245,000 5,489,508 10,734,508 2014 5,525,000 5,210,424 10,735,424 2015 5,815,000 4,919,655 10,734,655 2016 6,130,000 4,606,099 10,736,099 2017-2021 35,825,000 17,854,881 53,679,881 2022-2026 45,420,000 10,226,423 55,646,423 2027-2031 56,745,000 3,745,214 60,490,214 Total $165,685,000 $57,807,172 $223,492,172 The interest rate used to determine the future annual debt service requirements for the Series 2003-B-1 bondswas the1.55% OCIP rateat June 30,2011. The interestrateusedto determine the future annual debt service requirements for the Series 2003-B-2 bonds was 5.5227%, which also includes net swap interest. As part of the swap agreement, OCTA pays a fixed interest rate of 4.06227% per annum and receives the SIFMA Index which amounted to 0.09% on June 30, 2011. Asratesvary,bondinterestpaymentsandnetswap paymentswillvary. 91ExpressLanesFund Notes tothe Financial Statements Year EndedJune30,2011 27 ChangesinLong-Term Liabilities Long-term liabilitiesactivity fortheyearendedJune30,2011,wasasfollows: Beginning Balance Additions Reductions Ending Balance Due within One Year Tax-exempt bonds $170,425,000 $ -$4,740,000 $165,685,000 $4,980,000 Unamortizedpremium 5,156,053 -252,542 4,903,511 - Unamortizeddeferred amount on refunding (19,309,491)-(1,067,806)(18,241,685)- Total long-term liabilities $156,271,562 $ -$3,924,736 $152,346,826 $4,980,000 Arbitrage Rebate TheTaxReform Actof1986 institutedcertainarbitragerestrictionswithrespecttothe issuanceof tax-exempt bonds after August 31, 1986. In general, arbitrage regulations deal with the investment of all tax-exempt bond proceeds at an interest yield greater than the interest yield paidtobondholders. Failuretofollow thearbitrageregulationscouldresultinallinterestpaidto bondholderstoberetroactively renderedtaxable. In accordance with the arbitrage regulations, if excess earnings were calculated, 90% of the amountcalculatedwouldbeduetotheInternalRevenueService(IRS)attheendofeachfiveyear period. The remaining 10% would be recorded as a liability and paid after all bonds had been redeemed. During the current year, no excess earnings were calculated, therefore no payments weremade. PledgedRevenue The 91 ExpressLanes 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 willcovenanttofixandprescribetollratesforeachtypeofvehicleandeachtimeofday 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. For the year ended June 30, 2011, the 91 Express Lanes annual debt service payments include an additional $2,245,849 in interest associated with the downgrade of Ambac Insurance Corporation and the bankruptcy ofLehmanBrothersHolding Inc. 91ExpressLanesFund Notes tothe Financial Statements Year EndedJune30,2011 28 PledgedrevenuefortheyearendedJune30,2011,wasasfollows: Descriptionof PledgedRevenue AnnualAmountof PledgedRevenue AnnualDebt ServicePayments PledgedRevenue Coverage 91 ExpressLanesNet TollRoadRevenue $28,421,539 $14,503,019 1.96 7.Advancesfrom OtherOCTAFunds In connection with the purchase of the toll facility franchise, to fund the debt service payment required on February 15, 2003, and to establish operations, the 91 Express Lanes Fund borrowed $83,640,595 from other OCTA funds. Interest accrued monthly at an interest rate representing OCTA’s rate of return on short-term investments, adjusted each January (2.21% at June 30, 2011). Total interest of $323,831 accrued on the advances for the year ended June 30, 2011. On June 15, 2011, the 91 Express Lanes Fund repaid $9,865,561, representing the advance plus accruedinterest,withnetrevenues. AtJune30,2011,theseadvanceswerefully repaid. 8.TransferstoOtherOCTAFunds For the year ended June 30, 2011, the 91 Express Lanes Fund transferred $884,318 to OCTA’s Local Transportation Authority (LTA) Fund for the Riverside Freeway (SR 91) Eastbound Project right-of-way capitalexpendituresandsupportservices. 9.CommitmentsandContingencies OperatorAgreement In connection with the purchase of the toll facility interest, OCTA entered into an operating agreement with Cofiroute Global Mobility, subsequently Cofiroute USA, LLC (Cofiroute), to provideoperating servicesintheannualamountof$4,994,000 plusinflationfor threeinitialyears with two one-year extension options, subjectto Board of Directors approval. The agreementwas 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 OCTA 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 June30,2021 asthe second extension term. Cofiroute is responsible for the day-to- day operationsofthetollfacility. 91ExpressLanesFund Notes tothe Financial Statements Year EndedJune30,2011 29 Lease Commitments The 91 ExpressLanesFund is committed under two non-cancelable leases for office space. These leasesare considered for accounting purposes tobe operating leases. Lease expensesfor the year endedJune30,2011were$380,246. Futureminimum paymentsfortheseleasesapproximatethefollowing: Fortheyearending June30: 2012 $368,043 2013 106,287 2014 26,767 Total $501,097 10.EffectofNew Pronouncements GASBStatementNo.54 In March 2009, GASB issued Statement No. 54, Fund Balance Reporting and Governmental Fund Type Definitions. The objective of this statement is to enhance the usefulness of fund balance information by providing clearer fund balance classifications that can be more consistently appliedandby clarifying theexisting governmentalfundtypedefinition. OCTA implementedthisstatementinfiscalyear2011. GASBStatementNo.59 In June 2010, GASB issued Statement No. 59, Financial Instruments Omnibus. The objective of this Statement is to update and improve existing standards regarding financial reporting and disclosure requirements of certain financial instruments and external investment pools for which significant issues have been identified in practice. OCTA implemented this statementinfiscalyear2011. GASBStatementNo.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. This statement is effective for OCTA’s fiscalyearending June30,2013. GASBStatementNo.61 In November2010,GASB issuedStatement No. 61, TheFinancialReporting Entity: Omnibus – anamendment ofGASB StatementsNo. 14 and No. 34. The objectiveof thisStatementisto improve financial reporting for a governmental financial reporting entity. This statement is effectiveforOCTA’sfiscalyearending June30,2013. 91ExpressLanesFund Notes tothe Financial Statements Year EndedJune30,2011 30 GASBStatementNo.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 FASBand AICPA pronouncements issuedon or before November30,1989 which doesnot conflict with or contradict GASB pronouncements. This statement is effective for OCTA’s fiscalyearending June30,2013. GASBStatementNo.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 OCTA’s fiscal year ending June30,2013. GASBStatementNo.64 In June 2011, GASB issued Statement No. 64, Derivative Instruments: Application of Hedge Accounting Termination Provisions – an amendment of GASB Statement No. 53 . The objective of this Statement is to clarify whether an effective hedging relationship continues after the replacement of a swap counterparty or a swap counterparty’s credit support provider. This Statement sets forth criteria that establish when the effective hedging relationship continues and hedge accounting should continue to be applied. This statement iseffectiveforOCTA’sfiscalyearending June30,2012. ORANGE COUNTY TRANSPORTATION AUTHORITY 91 Express Lanes 2011 Customer Satisfaction Survey Results Staff Report Orange County Transportation Authority 550 South Main Street / P.O. Box 14184 / Orange / California 92863-1584 / (714) 560-OCTA (6282) December 16, 2011 To: State Route 91 Advisory Committee From: Will Kempton, Chief Executive Officer Subject: 91 Express Lanes 2011 Customer Satisfaction Survey Results Overview The Orange County Transportation Authority periodically conducts surveys of 91 Express Lanes toll road users to provide an understanding of customers’ satisfaction, priorities, concerns and experiences as they pertain to the Orange County Transportation Authority and the 91 Express Lanes. This report summarizes the results of the 91 Express Lanes 2011 Customer Satisfaction Survey. Recommendation Receive and file as an information item. Background The 91 Express Lanes 2011 Customer Satisfaction Survey was conducted by True North Research of Encinitas, California. This project supports the Orange County Transportation Authority (OCTA) Strategic Plan goal to enhance customer satisfaction by understanding, connecting with, and serving our diverse communities and partners. A total of 1,000 randomly selected 91 Express Lanes customers participated in the survey between September 19 and September 26, 2011. The sample was stratified by relevant customer characteristics including frequency of using the 91 Express Lanes, location of residence, and availability of contact information. To encourage and maximize participation, a mixed -method data collection approach was employed whereby customers were provided the option to participate in the survey by telephone or through a secure, password -protected website hosted by True North Research. The last survey was conducted in 2009 and where possible, comparisons to the prior results have been made. 91 Express Lanes 2011 Customer Satisfaction Survey Results Page 2 Discussion Broadly defined, the 2011 study was designed to: Profile customer travel behavior on the 91 Express Lanes, including frequency and time of use, trip purpose, as well as origin and destination. Identify the relative importance that customers place on specific performance aspects/standards when traveling on the 91 Express Lanes. Measure customers’ overall satisfaction with their 91 Express Lanes experiences, as well as how well they feel the 91 Express Lanes is meeting specific performance standards. Measure customers’ perceptions of OCTA’s management of the 91 Express Lanes. Identify customers’ current exposure to OCTA’s communications, as well as their preferences with respect to future communications efforts. An executive summary for the 91 Express Lanes 2011 Customer Satisfaction Survey is included as Attachment A, with the full report available at www.octa.net/91survey. Key findings include: Ninety percent of customers indicated that they were satisfied when using the 91 Express Lanes; 51 percent stated that they were very satisfied. More than 75 percent of customers were satisfied regardless of frequency of use, trip purposes, length of time being a customer, county of residence, or a variety of demographic characteristics. The more frequently a customer uses the 91 Express Lanes, the less likely they were to be very satisfied. Dissatisfaction was strongly related to the amount a customer pays in an average month, with satisfied customers paying an average of $53.21 per month and dissatisfied customers paying an average $89.82 per month. The average customer makes 4.19 one -way trips per week on the State Route 91 (SR-91) freeway, 2.71 of which are on the 91 Express Lanes. 91 Express Lanes 2011 Customer Satisfaction Survey Results Page 3 Forty-six percent of customers use the 91 Express Lanes for work-related travel; two-thirds occasionally use the lanes for personal trips at least occasionally. Approximately 75 percent of work-related trips begin in Riverside County, and 58 percent are destined for Orange County. By comparison, 49 percent of non-work trips originate in Riverside County, and 39 percent end in Orange County. Eighty-nine percent of customers indicated that saving time, traveling fast, accurate billing statements, and a road that is well maintained were either extremely or very important performance standards. More than 80 percent of customers were aware that the lanes are owned and managed by OCTA, and they generally have a high opinion of OCTA’s performance. Customers who agreed that OCTA does a good job communicating with them about the lanes outnumbered those who disagreed by nearly seven to one. Seventy percent of customers preferred to receive information about the 91 Express Lanes by email, up from 44 percent in 2007 . Fifty-four percent of customers prefer that their billing statements continue to be sent via conventional mail. Top areas for improvement are: improving the relationship between the perceived convenience and cost of the lanes, extending the 91 Express Lanes to Interstate 15 (I-15), making it easier to reach a customer service representative, building a direct connection between the 91 Express Lanes and the State Route 241 (SR-241) toll road, and increasing the perceived use of tolls to improve SR-91. Recommendations Based on the data received, it is recommended OCTA stay the course in terms of overall operations and toll policy. With 90 percent of customers indicating that they are satisfied with the 91 Express Lanes as a whole - and at least 79 percent of customers indicating that their expectations are being met for each of the 13 performance standards tested – the top priority should be to maintain the high quality service currently provided. 91 Express Lanes 2011 Customer Satisfaction Survey Results Page 4 In particular, customers place the highest value on saving time and traveling fast when using the 91 Express Lanes. Setting toll rates to facilitate free -flow traffic conditions is thus consistent with customers’ priorities, and the survey found explicit support for this policy as well. With respect to opportunities for improvement, OCTA should continue to pursue the completion of SR-91 to I-15 extension and the SR-91 to SR-241 connection. Customers clearly support these projects, anticipate utilizing the improved facilities in high numbers, and recognize the added convenience that the projects will convey. Two additional opportunities that OCTA should take advantage of to enhance customer satisfaction pertain to communications. Making it easier to reach a customer service representative will improve overall customer satisfaction, as will better communicating about the connection between the tolls customers pay and how they are used to improve and maintain the SR-91 freeway. Finally, a significant minority of customers felt that the convenience they receive from using the 91 Express Lanes is not worth the cost charged for using the lanes. This pattern of price-sensitivity was especially pronounced among high-frequency users, and was also associated with higher levels of dissatisfaction when using the lanes. It is recommended that OCTA explore programs targeted to high-frequency users – such as graduated or flat-fee toll structures – that could help improve the perceived value of using the lanes among this important customer segment. Summary OCTA has completed the 91 Express Lanes 2011 Customer Satisfaction Survey. The survey plays a role in helping OCTA better understand customer perceptions and attitudes, satisfaction levels, as well as travel behaviors and needs. The full 91 Express Lane 2011 Customer Satisfaction Survey final report is available on OCTA’s website at www.OCTA.net/91expresslanes. 91 Express Lanes 2011 Customer Satisfaction Survey Results Page 5 Attachment A. 91 Express Lanes 2011 Customer Satisfaction Survey Executive Summary Prepared by: Approved by: Stella Lin Ellen S. Burton Manager, Marketing Executive Director, External Affairs (714) 560-5342 (714) 560-5923 ORANGE COUNTY TRANSPORTATION AUTHORITY 91 Express Lanes 2011 Customer Satisfaction Survey Results Attachment A Intro d u c t i o n True North Research, Inc. © 2011 1OCTA. . . . . . . . . . . . . . . . I N T R O D U C T I O N The Orange County Transportation Authority (OCTA) is the county transportation commission responsible for planning, funding and delivering transportation improvements in Orange County—including freeway, street, and transit systems. In 2003, OCTA purchased the 91 Express Lanes (Lanes) from the California Private Transportation Company (CPTC), with the pur- pose being to expedite general purpose and capacity improvements to State Route 91 (SR-91) that otherwise would be delayed due to a noncompete provision that existed in the franchise agreement between CPTC and Caltrans. Since 2003, OCTA has been responsible for managing the 91 Express Lanes and related facilities, as well as setting all policy, pricing, and performance standards for the toll road. PURPOSE OF STUDY The overarching purpose of the survey presented in this report was to provide OCTA with a statistically reliable understanding of 91 Express Lanes customers’ satis- faction, priorities, concerns and experiences as the pertain to OCTA and the 91 Express Lanes. Like similar customer surveys conducted on a periodic basis since 1998, the current survey pro- vides the OCTA Board and staff with information that can be used to make sound, strategic deci- sions in a variety of areas, including planning, service delivery and enhancements, setting toll charges, and identifying effective marketing strategies. To assist in this effort, OCTA selected True North Research to design the research plan and con- duct the study. Broadly defined, the study was designed to: • Profile customers’ travel behavior on the 91 Express Lanes, including frequency and time of use, trip purposes, as well as origin and destination. • Identify the relative importance that customers place on specific performance aspects/stan- dards when traveling on the 91 Express Lanes. • Measure customers’ overall satisfaction with their 91 Express Lanes experiences, as well as how well they feel the 91 Express Lanes is meeting specific performance standards. • Measure customers’ perceptions of OCTA’s management of the 91 Express Lanes. • Identify customers’ current exposure to OCTA’s communications, as well as their prefer- ences with respect to future communications efforts. OVERVIEW OF METHODOLOGY A full description of the methodology used for this study is included in the full report. In brief, a total of 1,000 randomly selected 91 Express Lanes customers1 participated in the survey between September 19 and September 26, 2011. The sam- ple was stratified by relevant customer characteristics including frequency of using the Lanes, location of residence, and availability of contact information to ensure proper representation of customer subgroups. To encourage and maximize participation, a mixed-method data collection approach was employed whereby customers were provided the option to participate in the sur- vey by telephone or through a secure, password-protected website hosted by True North. The telephone interviews averaged 15 minutes in length. 1. Customers were required to have used the 91 Express Lanes at least 12 times (once per month average) dur- ing the past year to qualify for inclusion in the study. Just t h e F a c t s True North Research, Inc. © 2011 2OCTA. . . . . . . . . . . . . . . . J U S T T H E F A C T S The following is an outline of the main factual findings from the 91 Express Lanes customer sat- isfaction survey. For the reader’s convenience, we have organized the findings according to the section titles used in the body of this report. Thus, to learn more about a particular finding, sim- ply turn to the appropriate report section. FASTRAK DECISIONS • The majority of customers (62%) indicated that they have only one FasTrak transponder in their household, while the remaining customers indicated that they had two (28%), three (6%), or at least four (4%) transponders. • The most commonly reported method of acquiring their transponder was an in-store pur- chase at the Customer Service Center in Corona (40%), followed by telephone (33%), via the Internet (13%), the OCTA store in Orange (4%), or an alternative method (6%). • The vast majority of customers (88%) reported that they personally pay for their toll charges, with an additional 4% indicating that their toll charges are paid by another member of their family. Overall, just 6% of customers indicated that their employer is primarily responsible for paying their toll charges, whereas 2% mentioned an alternative individual or entity. USE OF 91 EXPRESS LANES • Among all customers surveyed, the average number of days reported for using the 91 Express Lanes was 7.66 per month. • Forty-two percent (42%) of 91 Express Lanes customers reported that they also use at least one other Southern California toll road in a typical month. • Among all customers surveyed, the most commonly used alternative toll road was the 241 (35%), followed by the 261 (15%), 73 (12%), 133 (11%), and the Interstate 15 toll road (6%). • Customers reported an average 4.19 one-way trips per week on the 91 Freeway. • Customers reported an average 2.71 one-way trips per week on the 91 Express Lanes. • Customers reported an average 2.17 midweek (Monday through Friday) one-way trips per week on the 91 Express Lanes. • Customers reported an average 1.81 one-way trips per week on the 91 Express Lanes during rush hour periods. • The most commonly reported purposes for trips made on the 91 Express Lanes were visiting friends and family (mentioned by 69% of all customers) and shopping or recreation trips (67%). Just under half (46%) of all customers indicated that they use the 91 Express Lanes for their work commute, whereas just 3% indicated that they use the Lanes for commuting to or from school. • Among work trips that involve the 91 Express Lanes, three-quarters (75%) originate in River- side County, 8% in Orange County, 7% in San Bernardino County, and 5% in Los Angeles County. • More than half (58%) of work trips that involve the 91 Express Lanes are destined for Orange County, 22% for Los Angeles County, 7% for Riverside County, 2% for San Bernardino County, and 4% for an ‘other’ county. • The pattern is more diverse for non-work trips made using the 91 Express Lanes. Although Riverside County is still the dominant county of origin (49%), the percentage of non-work trips that originate in Orange County (26%) and Los Angeles County (13%) is higher, whereas Just t h e F a c t s True North Research, Inc. © 2011 3OCTA. . . . . . . . . . . . . . . . San Bernardino County represents about the same percentage of work and non-work trip originations (7%). • With respect to non-work trip destinations for trips made using the 91 Express Lanes, Orange County is the most popular destination (39%), followed by Riverside County (26%), Los Angeles County (14%), ‘other’ counties (6%), and San Bernardino County (4%). OPINION OF 91 EXPRESS LANES • An overwhelming majority (90%) of customers indicated that they were generally satisfied with their experiences when using the 91 Express Lanes, with more than half (51%) stating that they were very satisfied. A small portion of customers (9%) reported that they were dis- satisfied, whereas 1% were unsure or unwilling to state their opinion. • Satisfied customers were most apt to cite time savings or faster travel (29%) as the primary reason they were satisfied with the 91 Express Lanes, followed by the ability to bypass traf- fic (28%) and the ease of use/convenience offered by the Lanes (7%). • Those who were generally dissatisfied with their experiences when using the 91 Express Lanes, on the other hand, were most likely to mention the expense of using the Lanes (9%) and the amount of traffic that exists on the toll road (6%) as the reasons for their position. • When asked to rate 13 specific service standards in terms of their importance, customers rated saving time when they use the Lanes as the most important service standard (95%), followed by that the Lanes is a fast way to travel (93%), that their billing statements are accu- rate (90%), and that the Lanes are well-maintained and in good condition (89%). • At the other end of the spectrum, customers rated as comparatively less important the use of tolls to help improve the 91 Freeway (61%), the reduction of wear and tear on their vehicle (66%), and the ease with which they can get in contact with a customer service representa- tive (71%). • When asked to rate how well the 91 Express Lanes are performing in meeting the same 13 service standards, customers expressed the highest levels of agreement that the Lanes allow them to save time (97%), followed by that they are a fast way to travel (96%), their bill- ing statements are accurate (95%), and that the Lanes are well-maintained and in good con- dition (94%). • Although still very high levels of agreement, fewer customers agreed that the convenience received from using the 91 Express Lanes is worth the cost (79%), that it is easy to get in touch with a customer service representative when needed (80%), and that the tolls they pay are used to help improve the 91 Freeway (81%). PERFORMANCE NEEDS AND PRIORITIES • Considering the importance that customers place on specific service standards and their perception of how well the Lanes are meeting these standards, the top priorities for improvement are strengthening the relationship between the perceived convenience and cost of the Lanes, making it easier to get in touch with a customer service representative, and increasing the perceived use of tolls to improve the 91 Freeway. • Among all customers who reported a perceived time savings, the average perceived time savings when using the 91 Express Lanes during morning rush hour was 27.58 minutes. • Among all customers who reported a perceived time savings, the average perceived time savings when using the 91 Express Lanes during the afternoon rush hour was 34.24 min- utes. Just t h e F a c t s True North Research, Inc. © 2011 4OCTA. . . . . . . . . . . . . . . . IMPROVEMENTS TO 91 EXPRESS LANES • When asked what one aspect of the 91 Express Lanes toll road or service they would want to improve most, the most common change that customers mentioned was a desire for reduced fees (34%), followed by extending the Express Lanes (16%), decreasing the wait times for customer service (8%), and improved prevention of illegal lane changes (5%). It is worth noting, moreover, that nearly one in five customers (19%) indicated that no changes were needed or that they could not think of a needed change for the 91 Express Lanes. • When the 91 Express Lanes are extended to connect with Interstate 15, 72% of existing cus- tomers anticipate using the extended section of the Lanes in both directions, 6% expect to the use the section only when traveling east, 1% anticipate using the new section only when traveling west, whereas 19% do not expect to use the extension and 1% are unsure. • Overall, 54% of customers indicated that they support the proposed direct connection between the 91 Express Lanes and the 241 toll road, 8% opposed the project, whereas 35% stated that they do not have an opinion. • A majority (56%) of 91 Express Lanes customers indicated that they support the policy of setting the toll charge high enough to keep traffic free flowing, whereas 28% opposed this policy and 17% were unsure or unwilling to share their opinion. • If the toll charge were reduced just before and after rush hour periods, most customers (54%) stated that they would alter their travel schedule to realize the savings, whereas 37% indicated that they would not alter their travel behavior and 10% were unsure or unwilling to share their opinion. OCTA AND COMMUNICATION • Eighty percent (80%) of customers indicated that they were aware that OCTA is responsible for managing the 91 Express Lanes, whereas 19% stated that they did not know the Lanes were managed by OCTA, and 1% were unsure. • More than two-thirds of customers agreed that OCTA does a good job communicating with me about the 91 Express Lanes through newsletters, billing inserts, emails, signs and other methods (83%, 4% unsure) and that OCTA is financially responsible when managing the 91 Express Lanes (70% agree, 23% unsure). • Overall, 57% of customers agreed that OCTA should use excess toll revenues to repay the construction costs as soon as possible so it can make the 91 Express Lanes free, whereas 33% disagreed with this statement and 9% were unsure or unwilling to share their opinion. • When asked how they prefer to receive information about the 91 Express Lanes, email was by far the most popular method among existing customers (70%), followed by direct mail (37%). Electronic message signs, road signs, and a website were also mentioned by 11%, 9% and 7% of customers, respectively.2 • Most customers (54%) indicated that they would prefer to continue receiving their billing statements by mail in the future, 36% indicated that they would prefer to receive their state- ment via email, 5% preferred to be able to check their statement online, whereas 4% were unsure or unwilling to answer the question. • Overall, the average total monthly toll charge reported by 91 Express Lanes customers sur- veyed in this study was $57.55. 2. Multiple responses were allowed. Just t h e F a c t s True North Research, Inc. © 2011 5OCTA. . . . . . . . . . . . . . . . • Just over half (51%) of customers indicated that they were aware that the 91 Express Lanes toll charge had been reduced in the 12 months prior to the interview, whereas 46% stated that they were not aware of the reduction and 3% were unsure. BACKGROUND & DEMOGRAPHICS The following table presents the demographic pro- file of 91 Express Lanes customers overall, as well as the profile for high-frequency users (3+ trips per week using the Lanes). TABLE 1 DEMOGRAPHICS OF CUSTOMERS OVERALL AND HIGH-FREQUENCY USERS All Customers High Frequency Users (3+ Trips Per Week) Total Respondents 1000 174 QD1 Gender Male 47.7 54.9 Female 51.0 44.7 Prefer not to answer 1.3 0.4 QD2 Age 18 to 24 1.0 0.0 25 to 34 6.5 8.2 35 to 44 13.0 22.1 45 to 54 23.2 24.9 55 to 64 25.2 25.4 65 and older 20.1 9.9 Prefer not to answer 10.9 9.4 QD3 Employment status Employed full time 60.5 76.4 Employed part time 6.4 2.0 Student 1.6 0.8 Homemaker 3.6 2.4 Retired 23.1 11.0 Between jobs 2.3 2.2 Prefer not to answer 2.5 5.0 QD4 Education level Some high school 2.4 3.6 High school grad 10.4 10.0 Tech / Voc 3.5 4.3 Some college 28.0 30.0 College grad 26.5 30.5 Some grad school 4.1 5.1 Graduate degree 20.4 12.1 Prefer not to answer 4.7 4.4 QD7 Household income Less than $25K 2.0 0.9 $25K to $49K 6.9 6.3 $50K to $74K 14.2 15.0 $75K to $99K 17.0 17.6 $100K to $149K 19.5 28.2 $150K to $199K 10.5 9.2 $200K or more 6.1 4.3 Not sure 2.4 2.5 Prefer not to answer 21.4 16.1 Con c l u s i o n s True North Research, Inc. © 2011 6OCTA. . . . . . . . . . . . . . . . C O N C L U S I O N S As noted in the Introduction, this study was designed to provide OCTA with a statistically reliable understanding of 91 Express Lanes customers’ satisfaction, priorities, concerns and experiences as they pertain to OCTA and the 91 Express Lanes. As such, it can provide the OCTA Board and staff with information that can be used to make sound, strategic decisions in a variety of areas, including planning, service delivery and enhancements, setting toll charges, and identifying effective marketing strategies. Whereas subsequent sections of this report are devoted to con- veying the detailed results of the survey, in this section we attempt to ‘see the forest through the trees’ and note how the collective results of the survey answer some of the key questions that motivated the research. The following conclusions are based on the True North’s interpretations of the results, as well as the firm’s collective experience conducting similar studies for government agencies throughout the State. How are customers using the 91 Express Lanes? Perhaps the most basic objective of this study was to develop an up-to- date understanding of how 91 Express Lanes customers are using the 91 Express Lanes, including how often they use the Lanes, when they typi- cally use the Lanes, for what purposes they use the Lanes, as well as where they typically originate and end their trips. The average 91 Express Lanes customer makes 4.19 one-way trips per week on the 91 Freeway, 2.71 of which involve using the 91 Express Lanes. Although most of these trips on the 91 Express Lanes occur mid- week (2.17) and during rush hour periods (1.81), it is important to recog- nize that nearly one-third of all trips occur outside of the midweek, rush hour periods. When compared to the number of weekly one-way trips reported during the heart of the economic recession in 2009, the aver- age number of trips reported on the 91 Express Lanes in 2011 increased by nearly 0.61 trips. Although there is a tendency for some to focus on the 91 Express Lanes as a tool for commuters, the reality is that customers use the 91 Express Lanes for more than just their daily commute. In fact, more than two- thirds of customers indicated that they use the 91 Express Lanes when visiting friends or family, and for shopping and/or recreation trips. By comparison, less than half (46%) of 91 Express Lanes customers indi- cated that they use the Lanes for their work commute, and just 3% indi- cated that they use the Lanes for commuting to or from school. Differences in trip purpose correspond with pronounced differences in the origins and destinations for trips made on the 91 Express Lanes. Approximately three out of every four work-related trips (75%) begin in Riverside County, and more than half of all work-related trips (58%) are destined for Orange County. By comparison, non-work trips are more Con c l u s i o n s True North Research, Inc. © 2011 7OCTA. . . . . . . . . . . . . . . . diverse in where they begin and end, with less than half (49%) originating in Riverside County and 39% concluding in Orange County. The aforementioned findings point to an important fact about 91 Express Lanes customers—they are a diverse group. Although it is instructive to examine the behaviors of the average 91 Express Lanes customer, the reality is that it is arguably even more important to appre- ciate that customers vary widely in their frequency and timing of using the Lanes, their use of alternative toll roads, and trip purposes. For example, long-time 91 Express Lanes customers (8+ years) were nearly twice as likely as relative new comers (less than 2 years) to also use alter- native toll roads in Southern California. With respect to trip purposes, residents of Riverside County and San Bernardino County were nearly twice as likely to report using the 91 Express Lanes for work trips when compared to their respective counterparts in Orange and Los Angeles counties. Differences in how customers use the 91 Express Lanes—and especially how often they use the Lanes—can lead to substantial varia- tion in the perceived value of the Lanes (more on this topic later in this section). How do customers prior- itize among various per- formance standards for the 91 Express Lanes? In addition to profiling customers’ use of the 91 Express Lanes, the sur- vey also sought to gauge the relative importance that customers place on specific performance aspects/standards when traveling on the 91 Express Lanes. In other words, what matters most to customers when they choose to travel on the 91 Express Lanes? Of 13 specific performance standards tested, customers prioritized the following standards: saving time, traveling fast, accurate billing state- ments, and a road that is well-maintained. At least 89% of customers sur- veyed indicated that these were either extremely or very important performance standards, and by extension are the dominant factors in how they evaluate the overall performance of the 91 Express Lanes. At the other end of the spectrum, customers placed considerably less importance on the ease with which they can get in touch with a customer service representative, that using the Lanes reduces the wear-and-tear on their vehicle, and that the tolls they pay are used to help improve the 91 Freeway. How well are the 91 Express Lanes meeting customers’ needs? Overall, the 91 Express Lanes (and OCTA) are doing an excellent job meeting customers’ needs and expectations. From an overall perfor- mance rating perspective, 90% of customers indicated that they were satisfied with their experiences when using the 91 Express Lanes, with more than half (51%) stating that they were very satisfied. Satisfaction was also widespread among customers, exceeding 75% in every identi- fied subgroup regardless of frequency of use, trip purposes, length of time being a customer, county of residence, or a variety of demographic Con c l u s i o n s True North Research, Inc. © 2011 8OCTA. . . . . . . . . . . . . . . . characteristics. It is also worth noting that overall satisfaction with the 91 Express Lanes appears to have increased slightly during the past two years.3 The high levels of satisfaction expressed by customers with respect to the 91 Express Lanes’ overall performance were also generally echoed within each of the 13 specific performance standards tested in the study. The Lanes are meeting the performance expectations of at least 79% of customers for every performance standard tested, and at least 90% of customers for the majority of standards tested. Moreover, the Lanes are performing best on the aspects that matter most to customers: saving time, being a fast way to travel, accurate billing statements, and having a well-maintained road. What are the best oppor- tunities for improving overall customer satis- faction? Perhaps the most important recommendation, and one that is occasion- ally overlooked in customer satisfaction research, is for OCTA to recog- nize the many things that it does exceptionally well and to focus on continuing to perform at a high level in these areas. As noted throughout this report, customers expressed high levels of satisfaction regarding the 91 Express Lanes and have a favorable opinion of the Lanes perfor- mance in most respects. The top priority for OCTA should thus be to do what it takes to maintain the high quality of service on that it currently provides on the 91 Express Lanes. However, as OCTA continues to strive for improvement, the results of this study do suggest opportunities to further bolster customer satisfac- tion. Considering the list of performance standards and their respective priority status, as well as customers’ open-ended responses about ways the 91 Express Lanes road and customer service can be improved, the top candidates for improvement are: improving the relationship between the perceived convenience and cost of the Lanes (i.e, overall value), com- pleting the extension of the 91 Express Lanes to Interstate 15, making it easier to reach a customer service representative, building a direct con- nection between the 91 Express Lanes and the 241 toll road, and increasing the perceived use of tolls to improve the 91 Freeway. More specifically, the results of the survey indicate that OCTA may want to develop a targeted set of strategies for addressing the needs and per- ceptions of high-frequency customers.4 One of the more striking pat- terns in the survey was that the more frequently a customer uses the 91 Express Lanes, the less likely they were to be very satisfied with their 3. Eighty-seven percent (87%) of respondents in 2009 reported being satisfied with their experiences using the 91 Express Lanes, compared to 90% in 2011. However, it should be noted that the structure of the question was changed from a seven-point numerical scale in 2009 to a four-point verbal scale in 2011, which could have a slight impact on the comparability of the results. 4. For the purposes of this study, high-frequency users are defined as taking at least seven one-way trips per week using the 91 Express Lanes. Con c l u s i o n s True North Research, Inc. © 2011 9OCTA. . . . . . . . . . . . . . . . experiences using the Lanes. Similarly, dissatisfaction with the Lanes was strongly related to the amount a customer pays in an average month. Satisfied customers reported paying an average $53.21 per month for 91 Express Lanes’ toll charges, whereas the corresponding figure among dissatisfied customers was $89.82. High-frequency users’ sensitivity to the cost of using the 91 Express Lanes was found in other aspects of the study as well. Whereas every other identified subgroup clearly supported the concept of setting the toll fee high enough to keep traffic free flowing on the Lanes, high-fre- quency users opposed this policy. They were also the only subgroup that was clearly unwilling (or unable) to change their travel times to take advantage of an off-peak toll reduction strategy designed to encourage customers to travel before or after rush hour periods. Considering their apparent inflexibility with respect to travel times, one strategy for improving the value of the 91 Express Lanes for high-fre- quency users would be to develop a graduated toll structure for these individuals. In other words, beyond a certain monthly trip threshold, the charge for using the toll roads could be discounted. A flat-fee monthly subscription may also be popular with high-frequency users. In addition to improving the value that these important customers perceive in using the 91 Express Lanes, the aforementioned programs may also have the potential to increase the total revenues to OCTA by encouraging greater use of the 91 Express Lanes and/or adoption of a higher monthly sub- scription fee. Are customers support- ive of OCTA’s manage- ment of the Lanes? More than 80% of 91 Express Lanes customers were aware that the Lanes are owned and managed by OCTA, and they generally have a high opin- ion of OCTA’s performance in this respect. The litmus test for measuring OCTA’s performance in managing the 91 Express Lanes is simple: what percentage of customers are satisfied with their experiences when using the Lanes? As noted above, this percentage is very high (90%). Of course, customers can also comment on more nar- rowly defined aspects of OCTA’s performance, including the Authority’s efforts to communicate with customers and its management of funds. In these respects as well, customers generally held a high opinion of OCTA’s performance. Customers who agreed that OCTA does a good job communicating with them about the Lanes outnumbered those who dis- agreed by nearly seven to one (7:1), and those who felt that OCTA is financially responsible outnumbered those who did not by approxi- mately sixteen to one (16:1). Con c l u s i o n s True North Research, Inc. © 2011 10OCTA. . . . . . . . . . . . . . . . Have customers’ com- munication preferences changed? One of the more compelling trends identified in this study is the appar- ent evolution of 91 Express Lanes customers’ preferences with respect to how OCTA can best communicate with them regarding the Lanes. Since 2007, there has been a pronounced shift in customers’ preferences away from direct mail in favor of email. Whereas 44% of customers in 2007 preferred email, a preference for email communications in the cur- rent study was found among 70% of customers. Even among seniors—a group that usually favors traditional mail—email was the preferred method by which customers desired to receive information about the 91 Express Lanes. Although 91 Express Lanes customers prefer email for general informa- tion about the Lanes, it should be noted that they do not extend this preference to billing statements. Most customers (54%) prefer that their billing statements continue to be sent via conventional mail. ORANGE COUNTY TRANSPORTATION AUTHORITY 91 Express Lanes 2011 Customer Satisfaction Survey Results PowerPoint 91 Express Lanes 2011 Customer Satisfaction Survey Purpose of Study Profile travel behavior on 91 Express Lanes Identify importance of performance standards Measure satisfaction with 91 Express Lanes o Overall o Regarding specific performance standards Measure perceptions of OCTA’s management of lanes Identify customers’ exposure to OCTA’s communications and preferences for receiving information 2 Methodology of Study Mixed-method design o Web survey with email invitation o 15-minute telephone survey 1,000 customers o 630 web o 370 phone Conducted Sept 19th to Sept 26th, 2011 Overall margin of error: ± 3.07% 3 2011 Overall Customer Satisfaction 4 Very dissatisfied 4.1 Somewhat satisfied 38.8 Very satisfied 51.1 Not sure 1.0Somewhat dissatisfied 5.0 Customer Satisfaction Trends 5 8691878185 0 10 20 30 40 50 60 70 80 90 100 2011 2009 2007 2006 2005 Study Year % C u s t o m e r s Note: To allow for a direct comparison with past studies, the 2011 percentage has been recalculated to reflect only those with an opinion. Satisfaction by Years & Usage 6 68.3 59.9 46.4 40.2 31.3 24.9 32.3 41.8 44.9 57.5 47.1 62.055.1 Very satisfied 52.6 32.4 33.2 41.2 Smwt satisfied 39.6 0 10 20 30 40 50 60 70 80 90 100 Fewer than 2 3 to 4 5 to 7 8 or more Less than 3 3 to 4 5 to 9 10 to 19 20 or more Years Using 91 Express Lanes (Q1)Days Per Month Using 91 Express Lanes (Q5) % C u s t o m e r s Average Number of One-Way Trips 7 2.7 2.1 2.5 1.8 1.6 2.0 0 1 2 3 4 2011 2009 2007 Study Year Av e r a g e # T r i p s Average # Trips per Week Average # Rush Hour Trips Minutes Saved on One-Way Commute 8 34.2 34.5 38.7 38.4 29.5 27.6 23.1 27.4 28.8 24.3 20 25 30 35 40 2011 2009 2007 2006 2005 Study Year Av e r a g e M i n u t e s S a v e d o n On e - W a y R u s h H o u r C o m m u t e Afternoon Morning Express Lanes Trip Purpose 9 2.8 46.2 66.868.5 0 10 20 30 40 50 60 70 80 Visit family, friends Shopping, recreation trips Work commute School commute Q12 Use 91 Express Lanes for . . . % C u s t o m e r s Origin & Destination 10 21.8 12.8 13.6 58.4 26.2 39.3 6.9 49.3 26.0 4.3 3.5 2.4 4.1 7.3 4.0 8.4 5.0 8.2 74.7 7.4 1.5 6.6 5.9 0 10 20 30 40 50 60 70 80 90 100 Origin Destination Origin Destination Work Commute Trips Non-Work Trips % C u s t o m e r s Not sure / Prefer not to answer Varies / Multiple counties Other County San Bernardino Riverside Orange Los Angeles Importance of Performance Standards 11 29.6 33.5 33.7 41.9 42.1 40.1 48.2 51.3 54.2 47.6 57.3 58.3 66.1 31.0 32.6 37.0 34.1 36.9 39.3 33.0 35.1 34.1 41.7 32.3 34.4 28.8 0 10 20 30 40 50 60 70 80 90 100 The tolls you pay are used to help improve the 91 Freeway Less wear and tear on your vehicle using 91 Express Lanes Easy to get in touch with customer service representative If you have issue, customer service responds in a timely manner You are treated professionally by customer service Can reliably estimate travel times when using 91 Express Lanes Convenience received from 91 Express Lanes is worth the cost The 91 Express Lanes is a safe way to travel It's less stressful when using the 91 Express Lanes 91 Express Lanes toll road is well maintained, in good condition Your billing statements are accurate The 91 Express Lanes is a fast way to travel You save time when using the 91 Express Lanes Q2 1 i Q2 1 e Q2 1 g Q2 1 h Q2 1 k Q2 1 f Q2 1 j Q2 1 b Q2 1 d Q2 1 m Q2 1 l Q2 1 a Q2 1 c % Customers Extremely important Very important Agree with Performance Statements 12 44.2 47.3 35.9 47.6 42.6 53.9 56.6 64.6 60.8 56.0 64.4 64.7 69.0 34.3 32.8 45.2 38.6 43.7 33.0 34.9 28.6 32.9 38.3 30.9 31.1 27.8 0 10 20 30 40 50 60 70 80 90 100 Convenience received from 91 Express Lanes is worth the cost [98%] Easy to get in touch with customer service representative [87%] The tolls you pay are used to help improve the 91 Freeway [81%] Less wear and tear on your vehicle using 91 Express Lanes [93%] Can reliably estimate travel times when using 91 Express Lanes [98%] If you have issue, customer service responds in a timely manner [85%] The 91 Express Lanes is a safe way to travel [97%] It's less stressful when using the 91 Express Lanes [98%] You are treated professionally by customer service [87%] 91 Express Lanes toll road is well maintained, in good condition [98%] Your billing statements are accurate [94%] The 91 Express Lanes is a fast way to travel [99%] You save time when using the 91 Express Lanes [99%] % Customers Who Provided Opinion Strongly agree Somewhat agree Support for Direct Connect to SR-241 13 Note: Percentage adjusted to be among those with opinion for comparability 41 50 14 13 36 20 5 6 3 11 0 10 20 30 40 50 60 70 80 90 100 2011 2009 Study Year % C u s t o m e r s Strongly oppose Somewhat oppose Not sure / Neutral Somewhat support Strongly support Use of Express Lane Extension to I-15 14 Prefer not to answer 0.2 Would not use 11.4 Yes, would use 80.6 Not sure 7.8 Setting Toll to Promote Free-Flow 15 Prefer not to answer 1.2 Do not favor 27.9 Yes, favor 55.6 Not sure 15.3 Preference for Receiving Information 16 2 1 5 67 4 2 3 1 53 44 5 1 2 52 52 7 8 11 37 70 0 10 20 30 40 50 60 70 80 Website Road signs Electronic sign Mail Email % Customers 2011 2009 2007 2006 Customer Characteristics 17 Description 2007 2009 2011 Median Age 48 52 55 Percent Male 62% 52% 48% Percent Female 38% 48% 52% Full Time Worker 58% 64% 61% Some College Education 83% 90% 83% Ethnicity - Caucasian 70% 74% 69% - Hispanic/Latino 13% 11% 11% - African-American 4% 4% 3% - Asian 6% 4% 4% Key Findings & Conclusions High levels of customer satisfaction o Satisfaction is also highest for the standards that customers care about most o Saving Time o Traveling Fast o Accurate Billing Statements o Well-Maintained Road Customers are aware and have positive assessments of OCTA’s management of the 91 Express Lanes 18 Recommendations & Opportunities Stay the Course Complete SR-91 to I-15 extension Complete SR-91 to SR-241 connection Improve accessibility of customer service representatives Explore offering billing statements via email Improve perceived value Develop programs targeted to high-frequency users 19 ORANGE COUNTY TRANSPORTATION AUTHORITY State Route 91 Corridor Projects - State Route 55 to State Route 241 Construction Update PowerPoint State Route 91 Corridor Projects - State Route 55 to State Route 241 Construction Update 2 State Route 91 Corridor Projects Overview Six projects being implemented in Orange County Ranging from $65 to $440 million Construction completion: from 2010 to 2023 3 State Route 91 Corridor Project Status Interstate 5 to State Route 57, one westbound general purpose lane Final design Tustin Avenue to State Route 55, one westbound auxiliary lane Final design State Route 57 to State Route 55, one eastbound general purpose lane and interchange improvements Project study report 4 State Route 91 Corridor Project Status State Route 55 to State Route 241, one eastbound and one westbound general purpose lane Construction State Route 91 Express Lane connector to State Route 241 Environmental clearance phase State Route 241 to State Route 71, one eastbound general purpose lane Completed December 2010 5 SR-91, SR-55 to SR-241 Update Construction Phase A+B construction contract First working day August 22, 2011 Construction completion in October 2012 6 SR-91, SR-55 to SR-241 Update Construction Status Construction progress is 11 percent Elapsed time is 8 percent 7 SR-91, SR-55 to SR-241 Update 91 Express Lanes Gantry New gantry designed as cantilever structure New gantry scheduled to be erected by mid-December 2011 Equipment installed on gantry from mid-December thru January 2012 Old gantry will not be removed until new gantry is fully operational 8 State Route 91 Corridor Projects Near Term Summary State Route 55 to State Route 241 – complete construction in October 2012 State Route 57 to State Route 55 – complete project study report in late 2012 Interstate 5 to State Route 57 – start construction in late 2012