• JANUARY 2009 LUNCHEON

o   Orange County stays strong with a diverse economy and remains competitive with innovative resources

o   Biotechnology is growing, manufacture remains a presence, and tourism and infrastructure is growing

o   Toll road system and congestion pricing on the SR-91 is a national model

o   Upcoming state and federal economic stimulus package offers opportunities ahead

OCBC Focuses on Top Strategic Issues

o   Infrastructure

o   Streamline CEQA process and suspend AB32 and SB375 to remove hurdles on infrastructure projects

o   OC Moves—new program launched in late 2008—brings public-private collaboration of business leaders, public agencies, and elected officials dedicated to improving regional transportation infrastructure to enhance Orange County’s economic prosperity and quality of life.

o   Workforce development and workforce housing

o   Research and communications

Recap of Successes:

o   Passing of Measure M

o   Securing $12 billion over the next 30 years

o   Allocating Prop 1B funding

Recap of Missed Opportunities:

o   Lack of city consensus led Orange County to fail worse than all other counties in the region for the last round of federal transportation authorization (SAFETEA-LU)

o   SR-241 toll project set back at state and local levels

o   Continuing resistance faced on the design-build authorization

Opportunities for Orange County on the Local, State, and Federal Levels

o   Local: Implement renewed Measure M Early Action Plan

o   State: Allocate Prop 1B and protect Prop 42 funds, authorize the design-build methodology, approve the Anaheim to Los Angeles High-Speed Rail, and advance the LOSSAN Corridor

o   Federal: Economic stimulus package for infrastructure, expiration of SA

• MARCH 2009 LUNCHEON

"OCTA: What's next now that the Economic Stimulus package has been signed?”

 Highlights from Tom Bogard’s Presentation

Highlights of his presentation:

• Revenue sources include federal and state gas taxes, Measure M sales tax, state infrastructure bonds (Proposition 10), and toll revenues (SR-91 and SR-241). New or potential sources include the federal economic stimulus program, reauthorization of the federal highway program, extension of the SR-91 express lanes, and container fee program.

• Cost trends show that construction prices have experienced a 3.6% annual increase over the past ten years, but within the last few years, it rose to a 23.6% annual increase due to the rising prices of commodity (steel) and fast-tracking of projects. Forward cost assumption includes very competitive bid pricing, almost an estimated 20-30% lower. Short-term strategies include: maintaining current projects—not “shelfing” any projects, holding to early construction schedules, leveraging state and federal funding, crafting projects to fit available funding, and avoiding project scope additions.

• The economic stimulus program was part of a three-piece discussion: federal economic stimulus, state infrastructure bond program, and the renewed Measure M Early Action Plan.
  • The federal economic stimulus program leaves little money for infrastructure and transportation: $27.5 billion (3.5%), of which $2.6 billion is allocated for California, leaving $130 million for Orange County. Allocation is calculated 70% state and 30% local. Award of 50% of the state amount is issued within 120 days, but all funds must be used by September 2010.
  • The state infrastructure bond program amounts to $600 million in Orange County, although it authorizes limited use of public-private partnerships.

• APRIL 2009 LUNCHEON

“Most K-12 Bonds Passed By a Landslide, then Stymied by State Budget Crisis: How will the economic stimulus package benefit out K-12 schools?

Speakers: Joe Dixon, Assistant Superintendent, Santa Ana Unified School District

Paul Reed, Business Superintendent, Newport Mesa Unified School District

 Highlights from the presentation:

• Despite explosion in local bonds measures ($27.7 billion in 2008), there are limitations on authorization to sell local bonds.
• Two main programs: new construction and modernization

• • New construction eligibility requires unhoused pupils to receive federal funding.
  • Modernization requires a school to be at least 25 years old, but limited funds are available.
• Santa Ana Unified School District Building Program:
  • Critical Overcrowded Schools (COS) –Prop 47
  • Overcrowding Relief Grant (ORG) – Prop 1D
  • Modernization Program – Prop 1D
• Stimulus Funding:
  • Original stimulus announced from Washington included construction money; the Newport Mesa Unified School District would have received $3 million and the Santa Ana Unified School District would have received $20 million. Changes to the stimulus package, as it progressed through the Senate, included removal of the construction money.
  • Incoming funding from the stimulus package will be dedicated to efforts associated with special education and disadvantaged students, but only for two years.
• Future impacts include the May 19^th ballot, capital markets, local bonds, demographics, and political will.