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Chair Tam T. Nguyen and CEO Darrell E. Johnson unveil plan for OCTA to sustain and enhance a balanced, innovative transportation network for all Orange County
ORANGE – The Orange County Transportation Authority in 2024 will focus on continuing to build a transportation network that is balanced, equitable and reliable, is fiscally responsible with taxpayer dollars, and protects the environment that makes Orange County such a special place to live.
Those guiding principles are part of the 2024 Board and CEO Strategic Initiatives and Action Plan, which was unveiled during this week’s Board meeting by OCTA Chair Tam T. Nguyen and by OCTA CEO Darrell E. Johnson.
Each year, the newly elected chair works with the CEO to formulate and present the document that guides the agency’s efforts throughout the coming year. The initiatives are then presented to the full 17-member board for a vote. The board unanimously approved this year’s initiatives. OCTA continues to prioritize safety, which has always guided all OCTA actions.
“OCTA has a strong history of working diligently on our promise to provide a reliable and equitable transportation network that has thrived even through challenging times and improved the quality of people’s lives,” Chair Nguyen said. “I look forward to working with my colleagues to deliver on our transportation initiatives that will have a meaningful impact on the lives of Orange County’s residents, workers and visitors in the coming months and years.”
The overarching initiatives for OCTA in 2024 include:
“Each year, the initiatives and action plan ensure that OCTA Board members and staff are working in lock step to deliver on our promises to taxpayers and to continue delivering a balanced, innovative transportation system that evolves with changing needs to keep Orange County moving safely and efficiently,” CEO Johnson said.
To learn more about OCTA programs and projects, visit www.octa.net.
New tolled express lanes opened Dec. 1, along with a new general-purpose lane in each direction, helping everyone who travels through one of the nation’s most traveled corridors
ORANGE – The 405 Express Lanes, open for two months as of today, is helping tens of thousands of drivers every day speed up their commutes with a reliable time-saving option for traveling through one of the nation’s busiest stretches of highway.
In its first seven weeks of operation, the 405 Express Lanes recorded 6.3 million transactions, translating to approximately 2 million trips taken on the 405 Express Lanes. Because the 14 miles of express lanes have several entrances and exits, and drivers are only charged for the sections they drive, in some cases multiple transactions are recorded per trip.
The 405 Express Lanes opened Dec. 1 as part of a $2.1 billion improvement project that also included a general-purpose lane in each direction on I-405 between Costa Mesa and the border with Los Angeles County. The project also included 18 new bridges, on- and off-ramps and new sidewalks and bike lanes, improving access to and from communities neighboring the 405.
“We are happy to see how the improvements to the new 405 Express Lanes are making a difference in the lives of so many of our residents, commuters and visitors who can now better access the many different destinations that make Orange County such a unique and vibrant place," said OCTA Chair Tam. T. Nguyen. “The millions of trips already taken underscores the need for these innovative transportation solutions that help keep Orange County moving."
During those first seven weeks, more than 4,100 405 Express Lanes accounts were opened and more than 6,800 transponders issued. Because all toll lanes in California are interoperable, many travelers use existing transponder accounts with 33% of total transactions coming from Transportation Corridor Agencies transponders and 15% from LA Metro.
With the opening on the first day of December, use of the 405 Express Lanes grew sharply and then slowed during the holiday period. Trips picked up again in the new year. On peak days, approximately 59,000 trips have been taken on the 405 Express Lanes.
That level of usage is equivalent to the level seen on the 91 Express Lanes, which OCTA has owned and operated for more than 20 years, pioneering the use of express lanes to provide a reliable travel option and improve commuting for everyone who travels the corridor.
On the 405 Express Lanes, northbound transactions account for about 55% of all transactions and the heaviest usage occurs on Fridays – with the lowest usage on Sundays. The majority of transactions so far are from solo-occupancy vehicles, and the heaviest traveled section of the 405 Express Lanes is between I-605 and SR-22 – one of the most traveled areas nationwide. As the 405 Express Lanes evolve, OCTA will routinely monitor usage and make adjustments to operations as necessary to continue meeting the evolving needs of travelers across the region.
For more information or to sign up for an account, visit www.405expresslanes.com.
The Board also appointed Doug Chaffee to serve as Vice Chair and four members were sworn into new terms on the Orange County transportation board.
ORANGE – At its first meeting of 2024, the Board of Directors of the Orange County Transportation Authority unanimously selected Tam T. Nguyen as its new chair.
With an annual budget of $1.7 billion, OCTA is responsible for planning, funding and delivering public transportation improvements for Orange County.
Last year, Chair Nguyen served as vice chair on the OCTA Board of Directors. He replaces outgoing Chairman Gene Hernandez.
Nguyen, a Fountain Valley resident, is a community and education leader.
“Since being appointed to serve as a public member on the OCTA Board in 2021, I have witnessed firsthand how much this agency is making a difference in helping to enhance travel options for residents, businesses and visitors,” Nguyen said. “I am grateful for the tremendous amount of trust of my fellow board members in selecting me as their chair, and I look forward to working with them as stewards of the public’s funds to continue innovating and delivering a balanced, equitable and sustainable transportation system for Orange County’s diverse communities.”
Chair Nguyen serves as one of two public members on the OCTA Board, and he has served in that capacity since April 2021. Nguyen has been a member of OCTA’s Diverse Community Leaders Group since its creation more than a decade ago.
Nguyen is also respected throughout the county as a leader in business and philanthropy. He is co-owner of Advance Beauty College, a second generation, family-owned business that was founded in 1987. Over 50,000 students have graduated from its innovative training with many becoming successful entrepreneurs, beauty manufacturers and salon owners in the beauty-care industry throughout North America.
Under his leadership as president from 1999 to 2022, Advance Beauty College has become nationally recognized for its manicuring program. It has been honored as a Civic 50 OC, Excellence in Education, Center for Family Business Hall of Fame Commitment to Education Award and Inaugural Golden School Award from the American Association of Cosmetology Schools.
Nguyen teaches business management at California State University, Fullerton, and is past president of the university’s alumni association. In 2015, he received the Cal State Fullerton Vision & Visionaries Award. He is currently the chair of the Cal State Fullerton’s Philanthropic Foundation Board of Governors.
In addition to his leadership with Advance Beauty College and Cal State Fullerton, Nguyen serves on the board of directors for Genesis Bank, MemorialCare Orange Coast Medical Center & Saddleback Medical Center, Small Business Diversity Network, Orange County United Way, Pro Nails Association, Center for Family Business, Garden Grove Police Chief’s Advisory Council and recently the board of the Garden Grove Community Foundation, Vietnamese American Chamber of Commerce and Project Vietnam Foundation.
During the COVID-19 pandemic, Nguyen co-founded Nailing It for America, a volunteer group that helped collect and deliver nearly $30 million worth of personal protective equipment for healthcare professionals, frontline workers and vulnerable community members.
Chair Nguyen was 1 year old when he and his family arrived in California in 1975 at the end of the Vietnam War. He and his wife are proud to be raising their three children in Fountain Valley and to be part of Orange County’s vibrant Vietnamese American community. He is a local college graduate who studied at both UC Irvine and Cal State Fullerton.
Elected by the OCTA Board to serve as Vice Chair was Director Doug Chaffee.
Newly appointed members of the OCTA Board include: Anaheim Mayor Ashleigh Aitken, Santa Ana Mayor Valerie Amezcua, Garden Grove Councilmember Stephanie Klopfenstein and Costa Mesa Mayor John Stephens.
The OCTA Board is comprised of 18 members, including the five county supervisors, two members from city councils in each of the five supervisorial districts, two public members and the Caltrans District Director serves in a non-voting ex-officio capacity.
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The 91 Express Lanes was born from the need for congestion relief on SR-91 when no public funds were available to solve this critical transportation problem. Built by the California Private Transportation Company (CPTC), the 91 Express Lanes embodied a unique concept: The private sector would take the risk and the state would get congestion relief at no cost to taxpayers.
Built at a cost of $135 million, the Orange County section of the project was authorized as a toll road by the State of California in 1989 and opened in 1995. An agreement with the State of California Department of Transportation (Caltrans) included a non-compete provision that created a 1.5-mile protection zone along each side of SR-91. This zone prohibited improvements along the corridor and created mobility problems as the region and corresponding transportation demands grew.
To mitigate growing concerns over congestion, the Orange County Transportation Authority (OCTA) acquired the 91 Express Lanes franchise rights in January 2003. This eliminated the non-compete provision, clearing the way for future enhancements that will increase capacity and improve traffic flow along the SR-91 corridor.
In 2008, the Riverside County Transportation Commission (RCTC) received authority to extend the Express Lanes to I-15. Traffic congestion on eastbound SR-91 between Anaheim and Corona is routinely among the worst five areas in the nation. At a cost of $1.4 billion, the RCTC 91 Corridor Improvement Project added regular lanes, tolled express lanes, auxiliary lanes and direct express lane connectors from the northbound I-15 to the westbound SR-91 and from the eastbound SR-91 to the southbound I-15. Improvements to interchanges, ramps and surface streets were also made along the 91 corridor.
The Riverside section of the 91 Express Lanes opened in 2017, providing customers with 8 additional miles of travel time certainty.
To provide 91 Express Lanes customers with excellent customer service, OCTA and RCTC entered into an agreement with the current 91 Express Lanes operator to service both segments of the Express Lanes.
In July 2013, OCTA issued Senior Lien Toll Road Revenue Refunding Bonds, Series 2013, to refund the outstanding Series 2003 Bonds, which were originally issued to finance the acquisition of the 91 Express Lanes for the design, construction and installation of the toll road. The current bonds outstanding are the Senior Lien Toll Road Revenue Refunding Bonds, Series 2023 Bonds, issued in July of 2023 to refund the Series 2013 Bonds.
Quick Facts
Bond Ratings: Aa3/AA-/AA-
Final Maturity: 2030
Debt Outstanding as of 3/31/2024: $47,545,000
On November 7, 2006, the voters of Orange County chose to extend the Measure M1 half cent sales tax for another 30 years from 2011 through 2041. Measure M2 (M2), administered by the Orange County Transportation Authority (OCTA), will generate billions of dollars to improve transportation in Orange County. M2 is designed to reduce traffic congestion and enhance overall mobility. Improvements in the plan include improving key freeways, upgrading major interchanges, and adding capacity and maintaining streets and roads. M2 allocates 43 percent of funds to freeway projects, 32 percent to streets and roads, and 25 percent to transit projects.
While the COVID-19 pandemic negatively impacted sales tax revenue through the first half of FY 2020-21, the second half of the FY showed tremendous growth as the Orange County economy began emerging from the pandemic. Though restaurants, gas
stations, and brick and mortar retail continued to be impacted in FY 2020-21, the impacts were more than offset by increased online purchases and the benefit of collecting sales tax on out-of-state online purchases, made possible by the Wayfair decision. As a result, sales tax collections for FY 2020-21 grew by 8.6 percent to $345 million, which is the highest annual sales tax collection for M2. Based on the strong sales tax growth in FY 2020-21 coupled with more optimistic near-term economic recovery, the 2021 sales tax revenue forecast for M2 is $13.2 billion. The revised forecast represents a $1.6 billion gross increase from what was assumed in the prior year's forecast.
On December 13, 2021, the 2021 Next 10 Plan was approved by the Board, reflecting updates to the Measure M2 sales tax revenue forecast, external funding assumptions, and project cost estimates. This comprehensive plan sets priorities and funding commitments over a ten-year period (2021-2030) to ensure the realization of Measure M2 commitments, maintain fiscal sustainability, and strive to deliver transportation benefits early.
The largest component of the overall M2 Program is the Freeway Program. It receives 43 percent of the net sales tax revenue. In the 2021 Next 10 Plan, $4.7 billion in freeway projects are scheduled to be delivered. The I-405 Improvement Project, which at $2.1 billion in estimated cost, will be the largest capital project that OCTA has delivered in its history. This project, slated to open in 2023, is concurrently under final design and construction.
OCTA issues Sales Tax Revenue bonds to provide funds for certain transportation projects, such as the Series 2019 Bonds issued in February 2019 for the funding of the general purpose lanes for the I-405 Improvement Project. The current bonds outstanding are the Series 2010 A Bonds, and Series 2019 Bonds. The 2021 Next 10 plan maintains just one bond issuance during the Next 10 Plan timeframe of approximately $200 million in Fiscal Year 2023; the amount assumed decreased by approximately $375 million from the 2020 Next 10 Plan.
Quick Facts
Final Maturity: 2041
Bond Ratings: Aa2/AA+/AA+
Debt Outstanding as of 3/31/2024: $569,315,000