More delays for toll roads’ decision

Alicia Robinson

Yet another option to bail out the San Joaquin Hills toll road parked

before members of the road’s governing board Thursday, delaying for a

month an expected decision on how to stabilize its finances.

San Joaquin Hills toll road and Foothill and Eastern toll road

board members have spent two years mulling options to prevent the San

Joaquin Hills toll road from defaulting on its debts, which could

happen as soon 2006. Toll roads board members have said financial

default would result in increased tolls for drivers.

Five proposals are now on the table for board members to consider

at a May 13 meeting. They include two versions of a proposal to merge

operations of the Foothill and Eastern and San Joaquin Hills toll

roads, and sell $3.9 billion in bonds to cover San Joaquin Hills’

debts; a proposal from Orange County Supervisor Chris Norby under

which the Foothill and Eastern toll roads’ governing agency would

purchase the assets and pay the debts of San Joaquin Hills; a

proposal submitted by county Treasurer-Tax Collector John Moorlach

that the Foothill and Eastern toll roads’ agency purchase a 10-year

option to buy the San Joaquin Hills toll road; and a new proposal

from County Supervisor Bill Campbell.

Campbell called his suggestion a “mitigation proposal,” in which

the Foothill and Eastern toll roads would pay $120 million cash and

lend $1.17 billion to the San Joaquin Hills toll road to compensate

for completing the Foothill South toll road, which will compete with

San Joaquin Hills.

After twice postponing a decision on the bond sale and merger

proposal, board members had expected to make a decision at Thursday’s

meeting, but Campbell’s proposal came in late Wednesday, said Peter

Herzog, chairman of the Foothill and Eastern toll roads board.

“Just due to sheer time constraints we weren’t able to get through

and analyze and take all that information into account, so I felt

that the most prudent thing to do so everyone could make the most

informed decision possible would be to continue that for 30 days,”

Herzog said.

Toll roads staff will provide board members with analysis of all

five proposals before the May meeting.

Costa Mesa Mayor Gary Monahan, who is on the San Joaquin Hills

toll road board, said he wasn’t frustrated by Thursday’s delay in

reaching a decision, but he is concerned about keeping traffic

flowing on the north end of the San Joaquin Hills toll road, which

might not happen if no bail out plan is adopted.

“We have a lot of difficult decisions to make and need to get them

made,” he said. “The longer we take, the harder it becomes.”

Herzog said he doesn’t think the delay will be detrimental to the

merger and bond plan, the specifics of which officials have said

would vary depending on interest rates and market conditions. A

decision on one of the plans is likely next month, he said.

“I feel very confident that in May something’s going to happen,”

he said.