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Resolution - Amendments to the San Joaquin Hills and Foothill /Eastern <br />Transportation Corridor Agencies' Joint Powers Agreements <br />December 2, 2002 <br />Page 2 <br />the Foothill /Eastern Corridor is currently operating at approximately 107 <br />percent of revenue projections established in 1999. <br />In February 2002, Fitch Investor Services, one of the three rating <br />agencies that rate Transportation Corridor Agencies (TCA) bonds, <br />downgraded a portion of the SJHTCA's bonds to a non - investment grade <br />rating. Immediately following the downgrade, the SJHTCA Board of <br />Directors hired two independent financial consultants to work with SJHTCA <br />staff to independently evaluate all financial options available to the <br />agency to establish long -term financial stability. <br />After the analysis, the financial team concluded that consolidation of the <br />SJHTCA and F /ETCA into a single agency was the only viable option for <br />establishing long -term financial stability for the toll -road system. This <br />consolidation would allow the two agencies to restructure outstanding <br />debt, streamline operations, diversify the revenue base, and strengthen <br />the agencies' ability to complete the toll -road system. <br />In April 2002, the SJHTCA Board unanimously voted to request the F /ETCA <br />Board to consider consolidation into a single joint powers authority. In <br />June 2002, the F /ETCA Board voted unanimously to proceed with the <br />potential consolidation. In October 2002, the SJHTCA and F /ETCA Boards <br />considered governing board structure options for a combined agency. The <br />Boards selected a 21- member board structure consisting of one <br />representative from each City and County Supervisorial District currently <br />represented on the existing TCA Boards (18 City and three County members). <br />On November 14, 2002, the Boards unanimously approved amendments to the <br />existing Joint Powers Agreement, which would permit this proposed <br />consolidation of the agencies. <br />Accordingly, the SJHTCA requests that member agencies, including the City <br />of Santa Ana, adopt proposed amendments to the Joint Powers Agreement. <br />The amendments would establish the legal foundation and framework for the <br />potential consolidation of the San Joaquin Hills and Foothill /Eastern <br />Transportation Corridor Agencies. Adopting the amendments does not create <br />the consolidated TCA, but establishes the legal groundwork for the <br />creation of a new, consolidated agency, only if the SJHTCA and F /ETCA <br />Boards vote to proceed with consolidation. <br />55. B. Page 126 <br />