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REQUEST FOR <br />COUNCIL ACTION <br />CITY COUNCIL MEETING DATE: <br />DECEMBER 2, 2002 <br />TITLE: <br />RESOLUTION - AMENDMENTS TO <br />THE SAN JOAQUIN HILLS AND <br />FOOTHILL /EASTERN <br />TRANSPORTATION CORRIDOR <br />AGENCIES' JOINT POWERS <br />AGREEMENT- <br />Edocation Is[ <br />CLERK OF COUNCIL USE ONLY: <br />APPROVED <br />s Recommended ( ,',,; t ZuU <br />Cā‘ As Amended <br />ā‘ Ordinance on 16` Reading <br />XOrdinance on 2otl Reading <br />Implementing Resolution Ic <br />ā‘ Set Public Hearing For <br />CONTINUED TO <br />FILE NUMBER (- <br />ITYMANAGER <br />RECOMMENDED ACTION 0`1304'761 <br />;7""(114 - <br />Adopt a resolution authorizing the City of Santa Ana to execute the second <br />amended and restated joint exercise of power agreement creating the San <br />Joaquin Hills Transportation Corridor Agency and the second amended and <br />restated joint exercise of powers agreement creating the Foothill /Eastern <br />Transportation Corridor Agency. <br />DISCUSSION <br />In 1986, the San Joaquin Hills Transportation Corridor Authority (SJHTCA) <br />and the Foothill /Eastern Transportation Corridor Authority (F /ETCA) were <br />created to plan, design, finance, and construct two new major highways - <br />one coastal and one inland - in Orange County. In 1987, the State <br />Legislature approved legislation granting both agencies the authority to <br />collect tolls and issue toll revenue bonds. <br />In 1993, the SJHTCA issued $1.2 billion in toll revenue bonds to fund <br />construction of the San Joaquin Hills (73) Toll Road. The Toll Road <br />opened in 1996. In the first year of operation, initial toll revenue <br />achieved only 50 percent of projected revenue. In response, the SJHTCA <br />took advantage of a favorable investment rate climate and refinanced <br />nearly all of its original bonded debt in 1997. Federal law only permits <br />one advanced refunding. <br />Since 1997, SJHTCA toll revenue and transactions have grown by more than <br />10 percent per year. However, this growth rate has not been sufficient to <br />keep pace with projections and an escalating debt service structure. <br />The SJHTCA Toll Road is currently operating at 77 percent of the revenue <br />projections that were forecast during the 1997 refinancing. In contrast, <br />Page 125 55. B. <br />