Orange County Business Council Infrastructure Committee

March 13, 2012

Will Kempton, OCTA CEO

2

M1 – Promises Made, Promises Kept

Delivered over $4 billion of improvements

Leveraged $1.2 billion external funds

Accelerated M1 delivery with bonding

Captured cost savings

resulted in bonus project – SR-22

Provided mobility sooner

3

Passed By Nearly 70%

Freeway43%

Streets & Road

s32%

Transit

25%

4

M2 Timeline

2006

• Measure M2 passed by voters

2007

• Early Action Plan adopted

2010

• Early Action Plan updated

2011

• M2 sales tax revenues began Apr 1

5

Early Action Plan ObjectivesIn progress or complete by end of 2012

1. Complete conceptual engineering for all M2 freeway projects

2. Start construction on five M2 freeway projects

3. Complete local agency eligibility for streets and roads

4. Award up to $165M for signal synch and road upgrades

5. Expand Metrolink service

6. Award up to $200M competitive funds for transit

7. Complete development work for improved services for seniors and persons with disabilities

8. Complete resource agency agreements/begin allocating funds

9. Complete Water Quality guidelines and begin allocating funds

6

0

5

10

15

20

25

2005 ForecastMay 2011 ForecastMay 2010 Forecast

Fiscal Year

Cu

mu

lati

ve

Sa

les

Ta

x R

ev

en

ue

(b

illio

ns

)

$15.5billion

$24.3billion

$13.7 billion

Sales Tax Forecast

7

M2020 Expediting the M2 Freeway Program

Favorable bidding climate

Avoid future inflation

Take advantage of low debt costs

Lock in resources

Deliver mobility early

Similar to M1 approach

A. Pay As You Go

B. Issue M Bonds

C. Issue M Bonds & I-405 Toll Bonds

8

Funding Options M2 Freeway Program

9

Option A: Pay As You Go(Assumes I-405 Alternative 1)

$(4,000)

$(2,000)

$-

$2,000

$4,000

$6,000

$8,000

$10,000

$12,000

$14,000

$M, Year of Expenditure Dollars

Cumulative Revenues

Cumulative Expenditures

Ending Balances

Delivery questionable due to negative balances

Approximately $7.8B total revenues including M2 & external revenues

10

Option A – Pay As You Go Year 2020

Delivery questionable due to negative cash balances 2014-2027

RED = ready for design, right-of-way & construction

11

Option B: Issue M Bonds(Assumes I-405 Alternative 1)

$-

$2,000

$4,000

$6,000

$8,000

$10,000

$12,000

$14,000

$M, Year of Expenditure Dollars

Total Revenues

Total Expenditures

Ending Balance

~$9B total revenue and $9B total expenditures

12

Option B – Issue M Bonds Year 2020

GREEN = M bonds

provide funds to accelerate project delivery

RED = ready for design, right-of-way & construction

Project K – 1 lane each direction I-605 to Euclid

All projects are delivered by 2041

13

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

2023

2024

2025

2026

2027

2028

2029

2030

2031

2032

2033

2034

2035

2036

2037

2038

2039

2040

2041

$(2,000)

$-

$2,000

$4,000

$6,000

$8,000

$10,000

$12,000

$14,000

Revenues including excess tolls

Expenditures without the use of excess tolls

Expenditures with projects advanced using excess tolls

Ending balance with excess tolls

$13B in total revenues including $1.8B in excess tolls

Ability to advance projects starting 2019 with excess toll revenue

$M, Year of Expenditure

Option C – M and Toll Bonds(Assume I-405 Alternative 3)

$1.8 billion surplus

14

Option C – Issue M & Toll BondsYear 2020

GREEN = in construction or complete – delivery accelerated by M and/or toll bonds

RED = ready for design, right-of-way & construction (may use surplus tolls to accelerate some projects)

Project K – 1 general purpose lane each direction plus express lanes facility I-605 to SR-73

All projects are delivered by 2041; potential for earlier delivery

15

Option C - Surplus FundProjected Excess I-405 Toll Revenue

20192020202120222023202420252026202720282029203020312032203320342035203620372038203920402041 $-

$200

$400

$600

$800

$1,000

$1,200

$1,400

$1,600

$1,800

$2,000 $M, Year of Expenditure

I-405 Excess Toll Revenue (contingent on toll legislation)

Ability to ad-vance $425M in projects

Ability to ad-vance another $470M

Total cumulative ~ $1.8B Surplus

Board policy and tolling legislation would define allow-able uses for ex-cess tolls

I-405 Improvement Project

16

Existing conditions

Rendering of I-405 looking northwest at Springdale St. overcrossing

Alternative 1

17Adds one general purpose lane in each direction

Alternative 2

18Adds 2 general purpose lanes in each direction

Alternative 3

19Adds an express lane facility and one general purpose lane in each direction

20

I-405 –Optimizing Throughput

No Build Alt 1 Alt 2 Alt 30

1000

2000

3000

4000

5000

6000

7000

8000

9000

10000

4800

6000

7200

6000

1200

1200

1200 3500

HOV/Express

General Purpose (GP)

6000

7200

8400

9500

Year 2040 - Vehicles, Northbound PM Peak Hour

4 GP, 1 HOV 5 GP, 1 HOV 5 GP, 2 Express 6 GP, 1 HOV

21

M2020 Summary

Can deliver entire M2 program Freeways Streets and Roads and Environmental

Keeps promise to voters Ability to expedite mobility improvements Potential to deliver beyond M2 plan

22

Next Steps

Description Dates

M2020 Outreach March - May

I-405 Release of Draft EIR/DEIS End of April

I-405 DEIR/DEIS Public Review April through mid-June

Selection of I-405 Locally Preferred Alternative

June

M2020 Recommendations July

Discussion

Go to www.octa.net/m2020 website for additional information and to provide your comments