241/91 Express Connector Project Agreements Approved
A major project milestone was met as the Foothill/Eastern Transportation Corridor Agency (F/ETCA) Board of Directors unanimously approved the CEO’s execution of the four-party Master and Operating Agreements for the 241/91 Express Connector Project. When completed, the project will provide a new, tolled direct connection between the 91 Express Lanes and the 241 Toll Road, improving connectivity and traffic flow through the area.
The Master Agreement defines the commitments and responsibilities of the
F/ETCA, Orange County Transportation Authority (OCTA), Riverside County Transportation Commission (RCTC), and California Department of Transportation (Caltrans), ensuring coordinated development, construction, and operation of the project. Additionally, the Master Agreement includes reimbursement to RCTC for the completed Eastbound McKinley 2.0 project, providing capacity for future 241/91 Express Connector volumes.
The Operating Agreement specifies the detailed operational roles and obligations among the toll operators – F/ETCA, OCTA and RCTC, including performance metrics, traffic monitoring, toll policy and enforcement requirements.
The F/ETCA Board also authorized the CEO to execute two agreements with Caltrans. The Construction Cooperative Agreement obligates Caltrans to bid, award, and manage the project for construction. The Express Connector Maintenance Agreement specifies that Caltrans will maintain roadway and structure elements of the project and be funded by F/ETCA.
The F/ETCA’s approval of the agreements is the first step to move the project into the construction phase. The Project is expected to go out for construction bid in late 2025 and open to traffic by early 2029.
Fiscal Year 2025 Strategic Plan Update
The Boards of Directors received an update on the Agencies’ Strategic Plan activities through June 2025. The activities adopted in the Strategic Plan are underway or in line with original expectations envisioned in the plan and meet the Agencies’ goals and objectives outlined in the seven focus areas: Fiscal Management, Environmental Stewardship, Customer Service, Tolling Technology, Public Engagement, Capital Projects and Regional Mobility Partnerships.
The Strategic Plan is a five-year rolling plan of key activities anticipated to be delivered through Fiscal Year 2029. The near horizon focus of the plan is centered around the following activities:
- Opportunities for continued early paydown of bond principal, resulting in reduction of debt and future interest savings. An early paydown of $47 million is planned in Fiscal Year 2026 for the San Joaquin Hills Transportation Corridor Agency (SJHTCA).
- The planning for the funding and phasing to advance the SR 241 Loma Segment and SR 73 Catalina View capital improvement projects.
- Delivery of the 241/91 Express Connector in coordination with project partners.
- Operational investments that maintain and improve efficiencies in roadway operations and customer service.
- Continuation of the Agencies’ legacy for environmental stewardship and exploration of broader approaches that includes progress made with the development of the Saddle Club Preservation Property for recreational uses, and community involvement, such as the Fossils in Your Backyard program and Spring Tours.
- Collaboration on studies to apply and enhance innovations in transportation that improve safety, increase throughput, and align with statewide efforts.
Annual Investment Portfolio Review Fiscal Year 2025
The annual investment review, conducted by the Agencies’ investment advisor, Chandler Asset Management, detailed the Agencies’ investment portfolios for Fiscal Year 2025 (FY25).
In FY25, the Agencies’ combined $1.7 billion portfolio earned $61.8 million in interest, and portfolio returns exceeded assigned benchmarks for the fiscal year ending June 30, 2025. The Agencies’ flexible investment strategies have enabled the portfolios to take advantage of recent increases in interest rates by reinvesting into higher-yielding securities. The portfolio reflects the Agencies’ strong fiscal management practices and provides the ability for early bond paydown, cash funded capital programs and maintains adequate reserves for future uncertainties.
