Share to Facebook Share to Twitter Bookmark and Share
File #: 2018-0128   
Type: Program Status: Agenda Ready
File created: 3/16/2018 In control: Ad Hoc Congestion, Highway and Roads Committee
On agenda: 4/11/2018 Final action:
Title: ESTABLISH a Toll Bond Pool of underwriters, listed in Attachment A, from which underwriters will be selected for future negotiated debt issues for toll revenue bonds and other toll revenue backed debt issued under the ExpressLanes program through June 30, 2021, with two further 1-year options to extend.
Sponsors: Board of Directors - Regular Board Meeting
Indexes: Debt, Disadvantaged business enterprises, Metro ExpressLanes, Program, Request For Proposal, Tolls
Attachments: 1. Attachment A - Summary of Underwriter Selection.pdf
Meeting_Body
AD HOC CONGESTION, HIGHWAY AND ROADS COMMITTEE
FINANCE, BUDGET AND AUDIT COMMITTEE
APRIL 11, 2018

Subject
SUBJECT: EXPRESSLANES TOLL BOND POOL

Action
ACTION: ESTABLISH AND APPOINT TOLL BOND POOL OF UNDERWRITERS
Heading
RECOMMENDATION

Title
ESTABLISH a Toll Bond Pool of underwriters, listed in Attachment A, from which underwriters will be selected for future negotiated debt issues for toll revenue bonds and other toll revenue backed debt issued under the ExpressLanes program through June 30, 2021, with two further 1-year options to extend.
Issue
ISSUE

To expand ExpressLanes in Los Angeles County and to construct the Tier 1 and Tier 2 projects identified in the 2017 ExpressLanes Strategic Plan (ELSP), Metro needs to determine how these projects will be funded and whether it is feasible to accelerate them. The ELSP assumes that virtually all the ExpressLanes projects will need to be funded by financing mechanisms.
At the September 2017 meeting, the Board approved the staff recommendation to develop solutions and programs based on a system financing approach and to present these to the Board for approval as they are finalized, as appropriate.
Staff has determined that establishing an underwriting pool for toll revenue bonds and any other toll revenue backed debt is an appropriate step in developing a process for the use of inter-fund borrowing of net toll revenues to support creation of the ExpressLanes network.
Discussion
DISCUSSION

Establishment of a Toll Bond Pool
To date, no debt has been issued for the ExpressLanes projects now in operation. Almost all of Metro's existing debt has been secured by, and repaid from, three of its four sales tax revenue measures. No debt secured by Measure M sales taxes has been issued yet.
In 2016, an unsolicited proposal was submitted to the Office of Extraordinary Innovation that identified financing strategies that would enable acceleration of ExpressLanes projects consistent with a system financin...

Click here for full text