San Joaquin Hills Transportation Corridor Agency Board Unanimously Approves Services Needed for Possible Bond Refunding
The San Joaquin Hills Transportation Corridor Agency (SJHTCA) Board of Directors unanimously approved a contract for services needed to proceed with a strategy to take advantage of current opportunities and favorable interest rates in the bond market to refund some of the Agency’s bonds. The refunding would generate significant savings in future interest payments without extending any of the bond maturity dates. The strategy also creates an opportunity to pay off debt earlier than projected while giving future Boards greater financial flexibility. The contract was approved with Stantec Consulting Services Inc. for $32,500 to complete necessary work related to the Agency’s existing investment-grade traffic and revenue (T&R) forecast and bond and disclosure counsel services.
The refunding opportunity could save the SJHTCA over $100 million net of costs and adds to the Foothill/Eastern Transportation Corridor Agency’s (F/ETCA) successful bond refundings in recent years that have reduced payments by more than $600 million without extending any bond maturity dates. Both Agencies are considering early pay down of bonds over the next five years, which could save an additional $400 million in interest resulting in nearly $1 billion in savings in recent years. Including a 10-year call provision on the refunding bonds – as in recent F/ETCA bond transactions – will afford future SJHTCA Boards maximum flexibility to pay down the bonds earlier.
Annual Customer Service Report Shows High Level of Customer Satisfaction
Staff presented the Boards with the results from the Agencies’ Annual Customer Service Report, which shows an overall customer satisfaction rate of 4.5 out of 5, reflecting customers’ positive experience and achieving the Boards’ goal of attaining a 4.5 out of 5 rating.
The customer satisfaction rate held steady from FY20 through FY21, the survey response rate increased by seven percent, the average wait time was just three minutes and 14 seconds and new accounts increased by 10%; proving that even during a global pandemic and resulting challenges experienced by nearly every industry, TCA is committed to customer service and the customer experience.
PayNearMe, a cash payment network that customers can use to pay a toll, violation or replenish their account at stores like 7-Eleven, CVS and, now, Walmart and Family Dollar, continues to be a popular option with customers. PayNearMe transactions increased by 47% over the previous year, while PayNearMe amounts collected increased by 75% compared to last year. Currently PayNearMe transactions have increased by 500% since the implementation of QR (Quick Response) codes, which provide even more customer convenience, resulting in an estimated savings of $10,000 per month in credit card fees.
Staff produces the Annual Customer Service Report to share key performance indicators related to customer service feedback and contractor performance.
