Management fees for toll roads deemed high...

Management fees for toll roads deemed high

A financial advisory firm is asking too much in fees to manage

bond sales and refinancing for a merger of area toll roads, according

to a report issued Friday by investment analyst First Southwest.

The board of the Transportation Corridor Agencies, which govern

the San Joaquin Hills Toll Road and Foothill and Eastern toll roads,

is expected to vote Thursday on a proposed consolidation of toll road

operations. The board delayed a vote last week to wait for

independent analysis of the transaction, which will include the sale

of $3.9 billion in bonds and restructuring of the agencies’ debts.

First Southwest’s report said the $5.25-million fee that would be

paid to a financial firm for managing the transaction appeared high

based on the concessions being asked of bondholders and other

conditions of the transaction. The report also recommended further

analysis of the bond transaction.

A memo to board members from the agencies’ chief financial

officer, Colleen Clark, said the agencies’ staff members find the

proposed fees reasonable and noted the amount of time and effort that

already have been put into researching the proposed bond sale.

The report from First Southwest was requested by the county board

of supervisors to clarify some of the financial issues involved with

the proposed merger, said Lisa Telles, Transportation Corridor

Agencies spokeswoman.

“A lot of the issues that are brought up in the report have

already been addressed through questions from board members,” she

said.

Transportation Corridor Agencies staff members are recommending

that the board vote on the issue at its meeting on Thursday, Telles

said.

Skate park forum to be held at City Hall tonight

Costa Mesa will host a community forum this evening to get public

input on the preliminary concept plan for the TeWinkle Skate Park.

The park has been approved for the northeast corner of Junipero

Street and Arlington Avenue.

The intent of the concept plan is to adapt the designs for the

Charle-Hamilton Streets skate park, which never got built. The

meeting will take place from 6:30 to 8 p.m. at City Hall, 77 Fair

Drive.