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HomeMy Public PortalAbout04 April 22, 2019 Budget & Implementation Comments are welcomed by the Commission. If you wish to provide comments to the Commission, please complete and submit a Speaker Card to the Clerk of the Board. MEETING AGENDA Budget and Implementation Committee Time: 9:30 a.m. Date: April 22, 2019 Location: BOARD ROOM County of Riverside Administration Center 4080 Lemon St, First Floor, Riverside CA 92501 COMMITTEE MEMBERS Linda Krupa, Chair / Russ Brown, City of Hemet Lloyd White, Vice Chair / Julio Martinez, City of Beaumont Larry Smith / Jim Hyatt, City of Calimesa Randall Bonner / Jeremy Smith, City of Canyon Lake Raymond Gregory / Mark Carnevale, City of Cathedral City Steven Hernandez / Megan Beaman Jacinto, City of Coachella Scott Matas / Russell Betts, City of Desert Hot Springs Bob Magee / Natasha Johnson, City of Lake Elsinore Lisa Middleton / Jon R. Roberts, City of Palm Springs Rusty Bailey, / Andy Melendrez, City of Riverside Michael Naggar / Maryann Edwards, City of Temecula Karen Spiegel, County of Riverside, District II Chuck Washington, County of Riverside, District III STAFF Anne Mayer, Executive Director Theresia Trevino, Chief Financial Officer AREAS OF RESPONSIBILITY Annual Budget Development and Oversight Competitive Federal and State Grant Programs Countywide Communications and Outreach Programs Countywide Strategic Plan Legislation Public Communications and Outreach Programs Short Range Transit Plans RIVERSIDE COUNTY TRANSPORTATION COMMISSION BUDGET AND IMPLEMENTATION COMMITTEE www.rctc.org AGENDA* *Actions may be taken on any item listed on the agenda 9:30 a.m. Monday, April 22, 2019 BOARD ROOM County of Riverside Administrative Center 4080 Lemon Street, First Floor Riverside, California In compliance with the Brown Act and Government Code Section 54957.5, agenda materials distributed 72 hours prior to the meeting, which are public records relating to open session agenda items, will be available for inspection by members of the public prior to the meeting at the Commission office, 4080 Lemon Street, Third Floor, Riverside, CA, and on the Commission’s website, www.rctc.org. In compliance with the Americans with Disabilities Act, Government Code Section 54954.2, and the Federal Transit Administration Title VI, please contact the Clerk of the Board at (951) 787-7141 if special assistance is needed to participate in a Commission meeting, including accessibility and translation services. Assistance is provided free of charge. Notification of at least 48 hours prior to the meeting time will assist staff in assuring reasonable arrangements can be made to provide assistance at the meeting. 1. CALL TO ORDER 2. ROLL CALL 3. PLEDGE OF ALLEGIANCE 4. PUBLIC COMMENTS – Each individual speaker is limited to speak three (3) continuous minutes or less. The Committee may, either at the direction of the Chair or by majority vote of the Committee, waive this three minute time limitation. Depending on the number of items on the Agenda and the number of speakers, the Chair may, at his/her discretion, reduce the time of each speaker to two (2) continuous minutes. Also, the Committee may terminate public comments if such comments become repetitious. In addition, the maximum time for public comment for any individual item or topic is thirty (30) minutes. Speakers may not yield their time to others without the consent of the Chair. Any written documents to be distributed or presented to the Committee shall be submitted to the Clerk of the Board. This policy applies to Public Comments and comments on Agenda Items. Under the Brown Act, the Board should not take action on or discuss matters raised during public comment portion of the agenda which are not listed on the agenda. Board members may refer such matters to staff for factual information or to be placed on the subsequent agenda for consideration. Budget and Implementation Committee April 22, 2019 Page 2 5. APPROVAL OF MINUTES – FEBRUARY 25, 2019 6. ADDITIONS/REVISIONS (The Committee may add an item to the Agenda after making a finding that there is a need to take immediate action on the item and that the item came to the attention of the Committee subsequent to the posting of the agenda. An action adding an item to the agenda requires 2/3 vote of the Committee. If there are less than 2/3 of the Committee members present, adding an item to the agenda requires a unanimous vote. Added items will be placed for discussion at the end of the agenda.) 7. CONSENT CALENDAR - All matters on the Consent Calendar will be approved in a single motion unless a Commissioner(s) requests separate action on specific item(s). Items pulled from the Consent Calendar will be placed for discussion at the end of the agenda. 7A. QUARTERLY SALES TAX ANALYSIS Page 1 Overview This item is for the Committee to: 1) Receive and file the sales tax analysis for Quarter 3, 2018 (3Q 2018); and 2) Forward to the Commission for final action. 7B. SINGLE SIGNATURE AUTHORITY REPORT Page 10 Overview This item is for the Committee to: 1) Receive and file the Single Signature Authority report for the third quarter ended March 31, 2019; and 2) Forward to the Commission for final action. 8. PROPOSED BUDGET FOR FISCAL YEAR 2019/20 Page 12 Overview This item is for the Committee to: 1) Discuss, review, and provide guidance on the proposed Fiscal Year 2019/20 Budget; 2) Open the public hearing in order to receive input and comments on the proposed FY 2019/20 Budget on May 8 and on June 12, 2019, and thereafter close the public hearing; and 3) Forward to the Commission for final action. Budget and Implementation Committee April 22, 2019 Page 3 9. QUARTERLY PUBLIC ENGAGEMENT METRICS REPORT, JANUARY – MARCH 2019 Page 34 Overview This item is for the Committee to: 1) Receive and file the Quarterly Public Engagement Metrics Report for January – March 2019; and 2) Forward to the Commission for final action. 10. STATE AND FEDERAL LEGISLATIVE UPDATE Page 41 Overview This item is for the Committee to: 1) Adopt the following bill position: a) AB 456 (Chiu, Bonta, Low) – Oppose; 2) Receive and file an update on state and federal legislation; and 3) Forward to the Commission for final action. 11. ITEM(S) PULLED FROM CONSENT CALENDAR AGENDA 12. COMMISSIONERS / STAFF REPORT Overview This item provides the opportunity for the Commissioners and staff to report on attended and upcoming meeting/conferences and issues related to Commission activities. 13. ADJOURNMENT The next Budget and Implementation Committee meeting is scheduled to be held at 9:30 a.m., Monday, June 24, 2019, Board Chambers, First Floor, County Administrative Center, 4080 Lemon Street, Riverside. AGENDA ITEM 5 MINUTES RIVERSIDE COUNTY TRANSPORTATION COMMISSION BUDGET AND IMPLEMENTATION COMMITTEE Monday, February 25, 2019 MINUTES 1. CALL TO ORDER The meeting of the Budget and Implementation Committee was called to order by Chair Rusty Bailey at 9:31 a.m., in the Board Room at the County of Riverside Administrative Center, 4080 Lemon Street, First Floor, Riverside, California, 92501. 2. ROLL CALL Members/Alternates Present Members Absent Rusty Bailey Mark Carnevale Russell Betts Karen Spiegel Randall Bonner Megan Jacinto Linda Krupa Bob Magee Lisa Middleton Michael Naggar Larry Smith Chuck Washington Lloyd White 3. PLEDGE OF ALLEGIANCE Chair Bailey led the Budget and Implementation Committee in a flag salute. 4. PUBLIC COMMENTS There were no requests to speak from the public. RCTC Budget and Implementation Committee Minutes February 25, 2019 Page 2 5. APPROVAL OF MINUTES – NOVEMBER 26, 2018 M/S/C (Bonner/Krupa) to approve the minutes of November 26, 2018 meeting as submitted. Abstain: Jacinto and Smith 6. ADDITIONS / REVISIONS There were no additions or revisions to the agenda. 7. CONSENT CALENDAR - All matters on the Consent Calendar will be approved in a single motion unless a Commissioner(s) requests separate action on specific item(s). Items pulled from the Consent Calendar will be placed for discussion at the end of the agenda. M/S/C (Bonner/Bailey) to approve the following Consent Calendar item(s): 7A. QUARTERLY FINANCIAL STATEMENTS 1) Receive and file the Quarterly Financial Statements for the six months ended December 31, 2018; and 2) Forward to the Commission for final action. 7B. SINGLE SIGNATURE AUTHORITY REPORT 1) Receive and file the Single Signature Authority report for the second quarter ended December 31, 2018; and 2) Forward to the Commission for final action. 7C. QUARTERLY INVESTMENT REPORT 1) Receive and file the Quarterly Investment Report for the quarter ended December 31, 2018; and 2) Forward to the Commission for final action. RCTC Budget and Implementation Committee Minutes February 25, 2019 Page 3 8. FISCAL YEAR 2018/19 MID-YEAR BUDGET ADJUSTMENTS Michele Cisneros, Deputy Director of Finance, provided an overview for the Fiscal Year 2018/19 mid-year budget adjustments. M/S/C (Bonner/Naggar) to: 1) Approve an increase of $10.5 million in Fiscal Year 2018/19 expenditures for mid-year budget adjustments; and 2) Forward to the Commission for final action. 9. INVESTMENT POLICY REVISION Theresia Trevino, Chief Financial Officer, provided an update for the Investment Policy revision. M/S/C (White/Bonner) to: 1) Adopt Resolution No. 19-004, “Resolution of the Riverside County Transportation Commission Regarding the Revised Investment Policy”; 2) Adopt the revised annual Investment Policy; and 3) Forward to the Commission for final action. 10. PROPOSED POLICY GOALS AND OBJECTIVES FOR FISCAL YEAR 2019/20 BUDGET Theresia Trevino, presented the proposed Policy Goals and Objectives for Fiscal Year 2019/20 Budget, highlighting the following areas: • Budget development – Establishing the Commission’s Goals and Policies; Department Goals and Objectives; and Budget Development and Adoption • Commission Goals and Objectives – Quality of Life; Operation Excellence; Connecting the Economy; and Responsible Partner • Guiding Fiscal Policies – Financial Planning; Revenues; Expenditures/Expenses; Debt Management; Cash Management; and Accounting and Reporting • Next steps – Development of Budget; Draft Proposed Budget April/May Commission cycle; and Final Budget June 12 Commission closes public hearing and adopts budget RCTC Budget and Implementation Committee Minutes February 25, 2019 Page 4 M/S/C (Magee/Smith) to: 1) Review and approve the proposed Commission Policy Goals and Objectives for the Fiscal Year 2019/20 Budget; 2) Review and approve the Fiscal Accountability Policies for the FY 2019/20 Budget; and 3) Forward to the Commission for final action. 11. STATE AND FEDERAL LEGISLATIVE UPDATE Jillian Guizado, Legislative Affairs Manager, presented an update on state and federal legislative activities. In response to Chair Bailey’s clarification the Commission is sponsoring AB 252, Jillian Guizado replied through self-help counties coalition so the Commission itself is not the sponsor. In response to Commissioner Russell Betts’ inquiry if there are any impacts to the Commission budget regarding a possible refund on the high-speed rail (HSR) as there was discussion at SCAG about the benefit even though it is not specifically for local transportation, Jillian Guizado replied to her knowledge the Commission is not a direct recipient. In response to Commissioner Larry Smith’s inquiry for the State Route 79 Realignment project and how it qualified for those funds, Jillian Guizado clarified as far as the NEPA Assignment Program and stated it is not funding related and she deferred to Anne Mayer on how specifically the Commission benefited. Anne Mayer explained NEPA delegation is implemented on almost every project the Commission does now that it has been enacted for a number of years. The goal with NEPA delegation on all projects is it reduces the amount of time to get the project delivered and minimizes the number of agencies involved in the approval process. She stated with NEPA delegation Caltrans acts as the federal agency in the approval process. Anne Mayer explained the SR-79 Realignment project was the last project that was approved for the environmental document and projects going forward will all be NEPA delegated projects. She discussed the comparison of the Mid County Parkway project as it was not part of NEPA since it was too far into the process. Commissioner Smith explained being familiar with those projects and having discussions in the past he did not recall this coming up and appreciated the explanation. Anne Mayer stated it is a very important part of the process if the Commission is trying to continue to streamline the delivery of these projects and this bill is essential in order for RCTC Budget and Implementation Committee Minutes February 25, 2019 Page 5 Caltrans to continue to assume that responsibility. The next step after this, which has been enabled by federal law, is to allow the substitution for CEQA for NEPA and the Commission will have to enact legislation to do it. Commissioner Lloyd White explained wanting to follow up with Commissioner Betts’ comments about HSR as there has been no mention by any of the Legislators about whether or not the funds that were directed for that project following the Constitutional Amendment that was passed last June that it now has to remain transportation funds. Jillian Guizado replied ACA 5 or Proposition 69 for the voters, it protected SB 1 funds and no SB 1 funds goes toward the HSR project. There are funds set aside through the greenhouse gas reduction funds or Cap-and-Trade although the Commission will have to wait and see. Commissioner White stated understanding the intent of the Constitutional Amendment was to ensure that Proposition 6 failed, however it was sold to the voters as it was all transportation funds not just Proposition 6 or not SB 1. Anne Mayer replied that was specifically tied to SB 1 as the other transportation dollars were already protected by Article 19 of the California Constitution so the Commission did not need to have duplicative protection. In response to Commissioner White’s inquiry if the funds for HSR are protected to stay in transportation and not be a part of the general fund, Anne Mayer replied there is a lot of confusion as to what happened with HSR. The state of California is continuing with the HSR project that is currently under construction, the intent is to use state and federal funding allocated for that project to build it. She explained HSR is not coming to Southern California; the Governor announced that the Phase II Los Angeles to San Diego via the Inland Empire is not a logical next phase without funding. Anne Mayer discussed the funding allocated to build HSR in Central California, why the protection of those funds are important in Southern California, how HSR does invest in L.A. Union Station, and what’s next for rail in Southern California. M/S/C (Krupa/Naggar) to: 1) Receive and file an update on state and federal legislation; 2) Adopt RCTC’s Federal Reauthorization Principles; 3) Adopt the following bill position: a) AB 252 (Daly, Frazier); and 4) Forward to the Commission for final action. RCTC Budget and Implementation Committee Minutes February 25, 2019 Page 6 12. ACTIVE TRANSPORTATION PROGRAM CYCLE 4 – RIVERSIDE COUNTY PROJECT RECOMMENDATIONS FOR METROPOLITAN PLANNING ORGANIZATION REGIONAL PROGRAM Jenny Chan, Management Analyst, presented the Active Transportation Program (ATP) Cycle 4 – Riverside County Project recommendations, highlighting the following areas: • ATP Program Overview: o Administered by the California Transportation Commission (CTC) o Funds bicycle and pedestrian facilities and programs to enhance or encourage walking and biking o Competitive – State wide and small/rural programs; and Large MPO level o 25 percent of ATP dollars must fund projects in disadvantaged communities • Distribution of Funds – Cycle 4 a total of $464 million of funds is available for FYs 2019/20 – 2022/23: 50 percent of the funds is allocated to the statewide pot by the CTC; 10 percent is allocated to small urban and rural areas; and the remaining 40 percent is allocated to large MPOs with a 5 percent set aside for planning and non-infrastructure projects • ATP Cycle 4 Statewide = $278.6 million: the CTC approved Statewide/Rural Programs – January 2019 for projects scoring 89 and above; and the CTC awarded six Riverside County projects totaling $27.4 million • ATP Cycle 4 MPO SCAG $92,572,000 – Riverside County share is $10,937,000; SCAG MPO guidelines allows additional 20 points; RCTC approved 20 point distribution • Riverside County MPO share project recommendations for ATP Cycle 4 with ATP MPO - $10,937,000 available for four Riverside County projects; and two projects unable to be funded due to funding constraint • SCAG’s Sustainable Communities Program (SCP) draft recommendations for planning/non-infrastructure - $4.6 million available • A map of all the projects that has been awarded ATP funds (Cycle 1, 2, 3, SB 1 Augmentation 4) At this time, Commissioner Chuck Washington left the meeting. Chair Bailey expressed this is good for Riverside County and clarified if Riverside County is getting its fair share and competing well. Jenny Chan replied yes and for Cycle 4 the Commission competed better than previous cycles. Anne Mayer expressed the credit for the Commission’s success in this program goes to the member agencies for the fine work they are doing on the applications, and the RCTC Budget and Implementation Committee Minutes February 25, 2019 Page 7 coordination with the Department of Public Health. She stated it is fair to say that in every single cycle the Commission has done much better than its fair share because there are terrific projects. She discussed the challenge for this program as successful as the Commission is in it as it brings administrative burden as well. Anne Mayer stated the question for the program is should this program really be administered at a state level as it is being administered now or should it be delegated down to the local level. M/S/C (Bailey/Smith) to: 1) Approve the Riverside County Active Transportation Program (ATP) projects for inclusion in the Metropolitan Planning Organization (MPO) ATP Regional Program Cycle 4 consisting of the highest scoring implementation projects in the total amount of $10,937,000; 2) Authorize staff to adjust the amounts to projects in either the ATP or Sustainable Communities Program to maximize available funds in Riverside County; 3) Submit the recommended projects to the Southern California Association of Governments (SCAG) for inclusion in the MPO ATP Regional Program and subsequent submittal to the California Transportation Commission (CTC) for final approval in June 2019; 4) Submit the MPO ATP regional projects to SCAG for inclusion in the Federal Transportation Improvement Program (FTIP) programming; 5) Direct staff to coordinate with the MPO ATP Regional Program project sponsors regarding timely funding allocations, obligations, and project delivery; and 6) Forward to the Commission for final action. 13. LOCAL TRANSPORTATION FUND ADVANCE LOAN TO RIVERSIDE TRANSIT AGENCY Fina Clemente, Transit Manager, provided an overview for the Local Transportation Fund advance loan to Riverside Transit Agency. M/S/C (Krupa/White) to: 1) Approve a loan to advance Local Transportation Funds (LTF) in the amount of $22 million to Riverside Transit Agency (RTA) under the condition the loan is repaid to the Commission within 14 days of receipt of Federal Transit Administration (FTA) Section 5307 funds; and 2) Forward to the Commission for final action. RCTC Budget and Implementation Committee Minutes February 25, 2019 Page 8 14. CALL BOX PROGRAM UPGRADE/REDUCTION PLAN AND AGREEMENTS Brian Cunanan, Commuter and Motorist Assistance Manager, presented the Call Box Program upgrade/reduction plan, highlighting the following areas: • Call Box Program related to optimizing the Commission’s Riverside County, which has been in operation nearly 30 years • Cellular network obsolescence – Current Verizon 3G Network will become obsolete on January 2020; and Cellular modem chipset to be upgraded - $822 per call box • Current deployment = 233 call boxes: One-time upgrade $221,400 and annual maintenance $104,000 • Over a five-year period keeping the call box system as is the cost would run an estimated $741,400 to upgrade and maintain • Declining demand/use – Average 4.5 calls per call box per year • Other considerations: o Caltrans has recommended removal of all Site Type B and C call boxes o Proliferation of cell phone ownership o Continuous development across the County o Growing cellular network coverage o Roadside assistance alternatives • Western Riverside County map of the Western and Coachella Valley to the east that illustrates the coverage by the major carriers: AT&T, Sprint, T Mobile, and Verizon • Eastern Riverside County map from Coachella to Blythe and the coverage by the major carriers for that area: AT&T, Sprint, T Mobile, and Verizon • Call box upgrade and reduction plan: o Removals – Urban areas/Freeway Service Patrol; low use call boxes; and remove all B and C site type call boxes, except seven sites on I-10 and two sites on SR-243 o Upgrades – Remaining call boxes (150 call boxes) • A map reflecting the resulting call box upgrades and removals • Projected schedule – March 2019 Commission approval of reduction plan; April- May 2019 CHP and Caltrans review period; June 2019 notice to proceed will be issued to CASE for the decommission and permanent removal of the identified call boxes and upgrades for remaining units; July – December 2019 CASE performs call box removals and upgrades and assessments; and January 2020 staff provides call box project update to the Commission • By the numbers – Call box optimization recommendation summary: o Reduce from 233 to 150 call boxes o ~$79,000 in savings one-time for upgrades o ~$38,000 in savings annually for maintenance RCTC Budget and Implementation Committee Minutes February 25, 2019 Page 9 o Sunset call box program in five years Commissioner Lisa Middleton concurred with moving in the direction of closing this program. She inquired about the 257 emergency call box calls to identify who needs to make an emergency call and what type of emergency they are dealing with. Brian Cunanan stated most of the call box calls are on the eastern portion of the County about 70 percent or so. In terms of how these calls break out he will provide this information at its March Commission meeting. Commissioner Middleton stated it might be individuals that are having difficulty with cell service coverage. She expressed is the extent to which these calls are coming from seniors who either cannot afford or refuse to adapt using a cell phone. Commissioner Middleton inquired if they are in an emergency situation then what can the Commission do to ensure that safe access is provided in time of an emergency. In response to Commissioner Smith’s inquiry about the call box equipment becoming obsolete and if there is any value to this used equipment, Brian Cunanan replied not that he is aware of since all the agencies are removing call boxes due to the decline and sunset as well. Commissioner Smith expressed that makes a bigger point as it apparently is going around the County and sun setting these programs and he concurred this is not unusual if there is no market for this equipment and expressed appreciation for Brian Cunanan’s presentation. Brian Cunanan explained California might be unique as he drove back from Zion and in looking at other call boxes on the highways there is nothing in the very rural and desolate areas so it is interesting how it is handled in different areas. In response to Commissioner White’s inquiry, Brian Cunanan replied annually the maintenance cost is about $37 per box per month, which is approximately $457 per year per box. In response to Commissioner White’s inquiry about how it is compared to the projected maintenance costs, Brian Cunanan replied the projected maintenance costs by box with the CPI escalation it would be about $37 per box per month as currently it is $36 per box. Commissioner Betts suggested in looking at these numbers related to the call boxes to phase this program out by 2020 and expressed appreciation for all the Commissioners comments. He stated when 3G no longer works just to phase it out when the carrier makes the switch to 4G and he wanted to know if the carriers have told Brian on whether 3G will continue to work. Brian Cunanan stated 3G is sun setting as of December 31 and calls will no longer be made. RCTC Budget and Implementation Committee Minutes February 25, 2019 Page 10 M/S/C (White/Middleton) to: 1) Approve the implementation of the 2019 Call Box Upgrade and Reduction Plan (CB Plan); 2) Approve Agreement No. 19-45-059-00 with San Bernardino County Transportation Authority (SBCTA) to provide for the reimbursement of call answering center (CAC) services related to the operation of call box CAC services associated with the call boxes and future 511 motorist assistance services in an amount not to exceed $180,000; 3) Approve Agreement No. 13-45-102-05, Amendment No. 5 to Agreement No. 13-45-102-00, with CASE Systems, Inc. (CASE) to provide call box removal and upgrade services consistent with the CB Plan and for the continued provision of call box maintenance services through June 30, 2020 for an additional amount of $275,000, and a total amount not to exceed $1,765,440; 4) Approve the sunset of the Call Box Program at the end of Fiscal Year 2023/24 or in conjunction with the next system network upgrade, whichever comes first; 5) Authorize the Executive Director pursuant to legal counsel review, to execute the agreements on behalf of the Commission; and 6) Forward to the Commission for final action. No: Betts At this time, Chair Bailey requested any new Commissioners to introduce themselves: the city of Coachella’s Alternate Megan Beaman Jacinto and the city of Calimesa’s Commissioner Larry Smith 15. ELECTION OF OFFICERS FOR THE BUDGET AND IMPLEMENTATION COMMITTEE Chair Bailey, stated this item is for the Budget and Implementation Committee to conduct an election of the officers for 2019. At this time, Chair Bailey opened nominations for the Chair position. Commissioner Bob Magee, seconded by Commissioner Michael Nagar, nominated Vice Chair Krupa for the Chair position for 2019. No other nominations were received. The Chair closed the nominations. Vice Chair Linda Krupa was elected as the Budget and Implementation Committee’s Chair for 2019. Abstain: Krupa RCTC Budget and Implementation Committee Minutes February 25, 2019 Page 11 At this time, Vice Chair Krupa assumed the Chair and opened nominations for the Vice Chair position for 2019. Commissioner Krupa nominated Commissioner Naggar as Vice Chair for 2019. Commissioner Naggar declined the nomination. Commissioner Magee, seconded by Commissioner Smith, nominated Commissioner Lloyd White for the Vice Chair position for 2019. No other nominations were received. The Chair closed the nominations. Commissioner Lloyd White was elected as the Budget and Implementation Committee’s Vice Chair for 2019. Abstain: White 16. ITEM(S) PULLED FROM CONSENT CALENDAR AGENDA There were no items pulled from the consent calendar. 17. COMMISSIONERS / EXECUTIVE DIRECTOR REPORT 17A. Chair Bailey announced it was a great morning and turn out at the La Sierra Metrolink Parking lot having coffee and donuts with the Mayor and a couple of City Council Members from the city of Riverside, and the CEO Stephanie Wiggins from Metrolink came out as well. 17B. Commissioner Krupa expressed gratitude to the committee for the vote of confidence and she looks forward to chairing this committee in 2019. She expressed appreciation to Chair Bailey for doing an exemplary job in 2018. RCTC Budget and Implementation Committee Minutes February 25, 2019 Page 12 18. ADJOURNMENT There being no further business for consideration by the Budget and Implementation Committee, the meeting was adjourned at 10:45 a.m. Respectfully submitted, Lisa Mobley Clerk of the Board AGENDA ITEM 7A Agenda Item 7A RIVERSIDE COUNTY TRANSPORTATION COMMISSION DATE: April 22, 2019 TO: Budget and Implementation Committee FROM: Michele Cisneros, Deputy Director of Finance THROUGH: Theresia Trevino, Chief Financial Officer SUBJECT: Quarterly Sales Tax Analysis STAFF RECOMMENDATION: This item is for the Committee to: 1) Receive and file the sales tax analysis for Quarter 3, 2018 (3Q 2018); and 2) Forward to the Commission for final action. BACKGROUND INFORMATION: At its December 2007 meeting, the Commission awarded an agreement with MuniServices, LLC (MuniServices), an Avenu Company, for quarterly sales tax reporting services plus additional fees contingent on additional sales tax revenues generated from the transactions and use tax (sales tax) audit services. As part of the recurring contracts process in June 2018, the Commission approved a five-year extension through June 30, 2023. The services performed under this agreement pertain to only the Measure A sales tax revenues. Since the commencement of these services, MuniServices submitted audits, which reported findings and submitted to the California Department of Tax and Fee Administration (CDTFA), as successor to the California State Board of Equalization, for review and determination of errors in sales tax reporting related to 881 businesses. Through 3Q 2018, the CDTFA approved 573 of these accounts for a cumulative sales tax recovery of $9,526,043. Updated amounts for 3Q 2018 will be provided once received from MuniServices. If CDTFA concurs with the error(s) for the remaining claims, the Commission will receive additional revenues; however, the magnitude of the value of the remaining findings was not available. It is important to note that while the recoveries of additional revenues will be tangible, it will not be sufficient to alter the overall trend of sales tax revenues. Additionally, MuniServices provided the Commission with the Quarterly Sales Tax Digest Summary report for 3Q 2018. Most of the 3Q 2018 Measure A sales tax revenues were received in the fourth quarter of calendar year 2018, during October 2018 through December 2018, due to a lag in the sales tax calendar. The summary section of the 3Q 2018 report is attached and includes an overview of California’s economic outlook, local results, historical cash collections analysis by quarter, top 25 sales/use tax contributors, historical sales tax amounts, annual sales 1 Agenda Item 7A tax by business category, and five-year economic trend for significant business category (general retail). As reported to the Commission in November 2018, the CDTFA implemented a new automation system in May 2018, and encountered some issues that included delays in tax return processing. This included numerous sales tax returns for the first two quarters of calendar year 2018 unprocessed at the CDTFA. The CDTFA has been responsive and committed to resolving the issues and completed the 1Q and 2Q 2018 unprocessed sales tax returns and has an insignificant amount of 3Q 2018 unprocessed sales tax returns. Staff continues to work closely with MuniServices to receive regular updates on the CDTFA unprocessed sales tax returns. Taxable transactions for the top 25 contributors in Riverside County generated 24.3 percent of taxable sales for the benchmark year ended 3Q 2018, slightly higher than the 22.8 percent for the benchmark year ended 3Q 2017. The top 100 tax contributors generated 38.8 percent, slightly higher than the 36.8 percent for the benchmark year ended 3Q 2017. In the Economic Category Analysis below, five of the six categories experienced new highs in the 3Q 2018 benchmark year compared to the prior eight benchmark years. The Miscellaneous category is below the 3Q 2015 benchmark year due to the Department of Motor Vehicles (DMV) change to sales taxes being reported using a unique transaction code rather than historically as a sales tax permit. The DMV sales tax reporting change will be reflected correctly in the 4Q 2018 report. An analysis of sales tax performance by quarter through 3Q 2018 is attached and illustrates fairly consistent cycles for sales tax performance for most of the economic categories since 3Q 2013. For 9 of the top 10 segments (auto sales-new, restaurants, department stores, miscellaneous retail, building materials-wholesale, apparel stores, food markets, building materials-retail, and heavy industry) during the eight benchmark year quarters, sales tax receipts reached a new high point. The segments represent 65.3 percent of the total sales tax receipts. Service stations representing 8.3 percent was higher than the last five benchmark year quarters since 3Q 2014. % of Total / % Change RCTC State Wide Orange County San Bernardino County S.F. Bay Area Sacramento Valley Central Valley South Coast North Coast Central Coast General Retail 28.1 / 6.5 27.0 / 1.9 27.9 / 2.3 26.0 / 3.0 24.9 / 1.8 26.9 / 1.4 30.2 / 3.6 27.6 / 1.7 28.1 / -6.1 29.2 / 2.5 Food Products 17.4 / 8.1 20.8 / 5.1 20.4 / 6.0 15.2 / 7.9 21.6 / 3.8 17.4 / 6.4 16.3 / 5.3 22.5 / 5.5 17.1 / -10.9 30.7 / 5.1 Transportation 25.2 / 5.7 23.9 / 5.1 23.3 / 4.3 26.8 / 2.0 22.1 / 12.0 28.8 / 5.5 25.8 / 5.1 23.0 / 3.0 29.7 / -7.3 22.6 / 9.3 Construction 10.9 / 12.2 9.9 / 13.7 8.9/ 13.1 9.5 / 16.4 9.9 / 13.1 11.8 / 15.3 11.7 / 16.2 8.9 / 12.7 13.5 / 7.4 8.2 / 24.4 Business to Business 16.6 / 6.6 17.2 / 5.3 18.2 / 3.7 20.3 / 5.7 20.4 / 7.2 14.1 / 4.0 15.2 / 10.3 16.8 / 4.6 10.1 / -4.7 8.6 / 1.9 Miscellaneous 1.8 / -14.8 1.2 / 11.0 1.3 / 4.5 2.2 / 6.1 1.2 / 20.4 1.0 / 0.0 0.7 / 8.6 1.2 / 9.2 1.6 / 19.1 0.8 / 4.2 Total 100.0 / 6.7 100.0 / 5.1 100.0 / 4.7 100.0 / 5.2 100.0 / 6.7 100.0 / 5.3 100.0 / 6.6 100.0 / 4.3 100.0 /-5.3 100.0 / 6.3 General Retail: Apparel Stores, Department Stores, Furniture/Appliances, Drug Stores, Recreation Products, Florist/Nursery, and Misc. Retail Food Products: Restaurants, Food Markets, Liquor Stores, and Food Processing Equipment Construction: Building Materials Retail and Building Materials Wholesale Transportation: Auto Parts/Repair, Auto Sales - New, Auto Sales - Used, Service Stations, and Misc. Vehicle Sales Business to Business: Office Equip., Electronic Equip., Business Services, Energy Sales, Chemical Products, Heavy Industry, Light Industry, Leasing, Biotechnology, I.T. Infrastructure, and Green Energy Miscellaneous: Health & Government, Miscellaneous Other, and Closed Account Adjustments ECONOMIC CATEGORY ANALYSIS 2 Agenda Item 7A The top 10 segments represent 73.6 percent of the total sales tax receipts. For the other 21 segments representing 26.4 percent of the total sales tax receipts, 11 segments representing 19 percent of the total sales tax receipts reached new high points in the benchmark year 3Q 2018. In the Economic Segments Analysis below, auto sales-new and department stores have been in the top three economic segments. Restaurants replaced service station in the top three economic segments beginning in 4Q 2014. The service stations segments high occurred in 4Q 2012 and declined through 1Q 2017 due to lower fuel prices; the 3Q 2018 benchmark year quarter for service stations reflects an increase over the last five benchmark years quarters since 3Q 2014 due to rising fuel prices. During the review of the 3Q 2018 detailed report with MuniServices, staff was informed of a reporting error by one of the top 25 sales/use tax contributors related to a misallocation of the district tax to the Commission during 2Q 2018 through 4Q 2018, resulting in an overpayment to the Commission estimated in the amount of $2.5 million. Staff is not certain in which period the misallocation correction will be completed; however, the Fiscal Year 2019 sales tax revenues after the correction are expected to continue to reflect an increase over the FY 2018 revenues. Information regarding sales tax comparison by city and change in economic segments (two highest gains and two highest losses) from 3Q 2017 to 3Q 2018 is attached. Staff continues to monitor monthly sales tax receipts and other available economic data to determine the need for any adjustments to the revenue projections. Staff will utilize the forecast scenarios included with the complete report and receipt trends in assessing such projection. Attachment: 1) Sales Tax Digest Summary 3Q 2018 2) Sales Tax Performance by Quarter 3Q 2018 3) Quarterly Sales Tax Comparison by City for 3Q 2017 to 3Q 2018 RCTC State Wide Orange County San Bernardino County S.F. Bay Area Sacramento Valley Central Valley South Coast North Coast Central Coast Largest Segment Auto Sales - New Restaurants Restaurants Restaurants Restaurants Auto Sales - New Department Stores Restaurants Department Stores Restaurants % of Total / % Change 11.2 / 0.7 14.8 / 3.6 15.1 / 4.3 10.3 / 4.9 15.6 / 3.8 13.4 / 3.6 12.1 / 0.9 16.6 / 3.6 10.8 / -3.7 21.9 / 4.0 2nd Largest Segment Restaurants Auto Sales - New Auto Sales - New Department Stores Auto Sales - New Restaurants Restaurants Auto Sales - New Restaurants Auto Sales - New % of Total / % Change 11.2 / 4.8 10.9 / 3.3 11.5 / 3.8 10.0 / 0.4 11.7 / 13.1 11.6 / 5.3 10.6 / 3.9 10.5 / 0.8 10.5 / -9.0 11.4 / 10.4 3rd Largest Segment Department Stores Department Stores Department Stores Service Stations Department Stores Department Stores Auto Sales - New Department Stores Service Stations Misc Retail % of Total / % Change 9.4 / 2.3 8.7 / 0.5 8.5 / 0.6 9.8 / 11.6 7.0 / 1.7 10.3 / 0.6 10.4 / -0.1 8.4 / 0.7 10.5 / -0.3 9.8 / 3.5 ECONOMIC SEGMENT ANALYSIS 3 Riverside County Transportation Commission Sales Tax Digest Summary Collections through December 2018 Sales through September 2018 (2018Q3) www.avenuinsights.com (800) 800‐8181 Page 1 CALIFORNIA’S ECONOMIC OUTLOOK  California sales tax receipts increased by 22.9% over the same quarter from the previous year, with  Northern California reporting a 23.8% increase compared to 22.3% for Southern California. Receipts for  the RCTC increased by 26.7% over the same periods. Unprecedented increases were due to California  Department of Tax and Fee Administration implementation of new reporting system and processing of  many sales tax returns filed for the prior three quarters in the current quarter.  GDP: Rose 3.4% in 3Q2018; 4.2% in 2Q2018. California GDP rose by 3.3% in the second quarter of 2018, following 3.7% growth in the first quarter on a year‐over‐year basis.  E‐Commerce as a Percent of Total U.S. Sales (3Q2018): 9.8% in 3Q2018. 9.6% in 2Q2018. 9.4% in 1Q2018. 9.1% in 4Q2017. 3Q2018 e‐commerce estimate increased 14.5% from 3Q2018 while total retail  sales increased 5.3% in the same period. E‐commerce sales in 3Q2018 accounted for 9.8% of total sales.  Holiday Spending: Retail sales rose 5.1% between November 1 and December 24 from a year ago. Total sales topped $850 billion this year. Online sales continued to grow, up more than 19% from a year  ago. Online sales made up 13% of total retail sales.  LOCAL RESULTS  Net Cash Receipts Analysis  Local Collections $55,558,164  Share of County Pool 0.0% 0  Share of State Pool 0.0% 0  SBE Net Collections 55,558,164  Less: Amount Due County 0.0% .00  Less: Cost of Administration (500,220)  Net 3Q2018 Receipts 55,057,944  Net 3Q2017 Receipts 47,892,420  Actual Percentage Change 26.7%  Business Activity Performance Analysis  Local Collections – Economic Basis 3Q2018 $46,291,846  Local Collections – Economic Basis 3Q2017 $43,882,787  Quarter over Quarter Change 2,409,059  Quarter over Quarter Percentage Change 5.5%  Avenu Insights & Analytics’ On‐Going Audit Results  Total Recovered Year to Date $9,526,403  ATTACHMENT 1 4 RCTC www.avenuinsights.com (800) 800‐8181 Page 2 HISTORICAL CASH COLLECTIONS ANALYSIS BY QUARTER    TOP 25 SALES/USE TAX CONTRIBUTORS  The following list identifies RCTC’s Top 25 Sales/Use Tax contributors. The list is in alphabetical order  and represents sales from October 2017 to September 2018. The Top 25 Sales/Use Tax contributors  generate 24.3% of RCTC’s total sales and use tax revenue.    7‐ELEVEN FOOD STORES LOWE'S HOME CENTERS  AMAZON.COM MACY'S DEPARTMENT STORE  ARCO AM/PM MINI MARTS MCDONALD'S  BEST BUY STORES RALPH’S  CARMAX THE AUTO SUPERSTORE ROSS STORES  CHEVRON SERVICE STATIONS SAM'S CLUB  CIRCLE K FOOD STORES SHELL SERVICE STATIONS  COSTCO WHOLESALE STATER BROS MARKETS  DEPT OF MOTOR VEHICLES TARGET STORES  FERGUSON ENTERPRISES VERIZON WIRELESS  FOOD 4 LESS WAL MART STORES  HOME DEPOT WALGREEN’S  KOHL'S   5 RCTC www.avenuinsights.com (800) 800‐8181 Page 3 HISTORICAL SALES TAX AMOUNTS                                            ANNUAL SALES TAX BY BUSINESS CATEGORY                                    The following chart shows the sales tax level from annual sales through September 2018, the  highs, and the lows for each segment over the last two years in thousands of $.  6 RCTC www.avenuinsights.com (800) 800‐8181 Page 4 FIVE‐YEAR ECONOMIC TREND: General Retail        7 RCTC:  Sales Tax Performance Analysis by QuarterTOTALEconomicTOTAL2018Q3 QoQ %∆QoQ $∆YoY %∆YoY $∆$46,291,846 5.5% $2,409,059 6.6% $11,829,643GENERAL RETAIL2018Q3 QoQ %∆QoQ $∆YoY %∆YoY $∆$12,671,482 10.7% $1,229,578 6.5% $3,238,58127.4%FOOD PRODUCTS2018Q3 QoQ %∆QoQ $∆YoY %∆YoY $∆$7,527,056 7.2% $504,870 8.1% $2,441,684% of Total: 16.3%TRANSPORTATION2018Q3 QoQ %∆QoQ $∆YoY %∆YoY $∆$12,440,661 6.8% $789,580 5.7% $2,553,482% of Total: 26.9%CONSTRUCTION2018Q3 QoQ %∆QoQ $∆YoY %∆YoY $∆$5,163,949 3.4% $169,143 12.2% $2,244,007% of Total: 11.2%BUSINESS TO BUSINESS2018Q3 QoQ %∆QoQ $∆YoY %∆YoY $∆$7,563,985 2.7% $198,912 6.6% $1,930,167% of Total: 16.3%Q4 Q1 Q2 Q3TOTALCATEGORY% of 2018Q3 Total:QoQ = 18Q3 / 17Q3 YoY = YE 18Q3 / YE 17Q3$0$2,000,000$4,000,000$6,000,000$8,000,000$10,000,000$12,000,000$14,000,000$16,000,000$0$10,000,000$20,000,000$30,000,000$40,000,000$50,000,000$60,000,000ATTACHMENT 28 Quarterly Comparison of 2017Q3 and 2018Q3 (July through September Sales)General RetailFood ProductsTransportationConstructionBusiness To BusMiscellaneousJul ‐ Sep 2018 (2018Q3)Jul ‐ Sep 2018 (2017Q3)% ChgGainGainDeclineDeclineBANNING‐13.6% 9.9% 20.4%‐33.7% 229.4%‐8.3%692,759574,93920.5%Florist/Nursery Light Industry Energy SalesHeavy IndustryBEAUMONT‐7.6% 4.7% 12.0% 7.5%‐35.0% 11.2%1,079,7571,075,1960.4%Auto Sales ‐ Used Business ServicesLight Industry Drug StoresBLYTHE‐60.3% 12.1% 0.5% 1.0% 50.0%‐65.5%337,289351,850‐4.1%Florist/Nursery Light Industry Business ServicesMiscellaneous OtherCALIMESA4.0% 14.1% 16.4%‐5.0% 36.6% 23.9%208,300181,36314.9%Electronic Equipment Recreation Products Business ServicesMisc. Vehicle SalesCANYON LAKE‐12.2% 15.9% 472.5%‐97.5%‐5.0%‐2.5%116,24452,712120.5%Auto Parts/Repair Food Markets Bldg.Matls‐Whsle Apparel StoresCATHEDRAL CITY4.3% 1.2% 4.9% 12.7%‐2.1%‐12.9%2,074,4231,998,9053.8%Miscellaneous Retail Service Stations Electronic Equipment Energy SalesCOACHELLA‐5.2% 7.2% 11.0%‐20.3% 13.5%‐29.0%774,182727,3806.4%LeasingBusiness ServicesHealth & Government Drug StoresCORONA‐5.6% 1.3% 2.5% 4.6%‐14.3%‐36.3%9,759,80010,015,616‐2.6%Food Markets Misc. Vehicle Sales Health & Government Food Processing EqpCOUNTY OF RIVERSIDE‐1.1% 4.9% 11.4% 18.5%‐9.2%‐2.0%6,677,5286,427,5193.9%Auto Sales ‐ Used Auto Sales ‐ New LeasingDrug StoresDESERT HOT SPGS1.7% 2.8% 14.2%‐32.0%‐19.1%‐71.7%352,545335,9035.0%Florist/Nursery Miscellaneous Retail Recreation Products Bldg.Matls‐WhsleEASTVALE24.0% 2.6% 31.7%‐11.0%‐43.7% 42.4%2,006,7691,986,4311.0%Florist/Nursery LeasingElectronic Equipment Heavy IndustryHEMET‐3.3% 7.1%‐9.2% 1.2%‐6.7%‐3.7%2,580,1372,689,707‐4.1%Bldg.Matls‐Whsle Service Stations Food Processing Eqp Heavy IndustryINDIAN WELLS16.7% 29.3% 0.0% 303.1%‐59.1%‐91.6%128,056105,43221.5%Furniture/Appliance Bldg.Matls‐Whsle Miscellaneous OtherHeavy IndustryINDIO0.9% 5.7% 2.7%‐19.3% 11.3% 6.1%2,376,4702,362,5350.6%Heavy IndustryFood Processing Eqp Electronic Equipment Office EquipmentJURUPA VALLEY1.0% 4.9% 11.7% 15.5% 6.8% 4.2%2,753,2692,552,6027.9%I.T. Infrastructure BiotechnologyFlorist/Nursery Drug StoresLA QUINTA‐0.3% 11.3%‐1.3% 7.5% 11.0%‐9.1%1,609,3521,559,9813.2%Chemical Products Bldg.Matls‐Whsle Light Industry Electronic EquipmentLAKE ELSINORE‐5.4% 0.7%‐6.4%‐0.2% 40.4%‐2.8%2,109,5322,146,476‐1.7%Light Industry Chemical Products Green Energy Misc. Vehicle SalesMENIFEE‐6.7% 3.9% 19.9% 5.7% 12.0% 157.9%1,839,8901,750,9995.1%Miscellaneous OtherBusiness ServicesFood Processing Eqp Florist/NurseryMORENO VALLEY‐3.7% 7.7% 9.3%‐0.5% 0.2% 37.8%4,344,8164,198,8173.5%Chemical Products Florist/Nursery Energy SalesDrug StoresMURRIETA‐2.8% 18.5%‐0.1%‐2.7% 16.6%‐41.4%3,975,9913,876,0902.6%LeasingFood Markets Electronic Equipment Miscellaneous OtherNORCO1.4% 7.8% 5.7%‐8.2% 9.6% 105.3%1,617,2341,542,3364.9%Miscellaneous OtherMisc. Vehicle Sales Electronic Equipment Energy SalesPALM DESERT‐1.7% 2.9% 67.5% 8.7% 11.5%‐13.4%3,436,3173,218,2146.8%Auto Sales ‐ New LeasingDrug StoresHeavy IndustryPALM SPRINGS1.6% 2.2% 6.3% 10.5% 19.0%‐19.9%2,425,1652,303,2825.3%Chemical Products Energy SalesMiscellaneous OtherDrug StoresPERRIS 39.5% 10.4% 7.2%‐19.1%‐19.4% 10.6%4,219,4943,827,11610.3%Florist/Nursery Apparel Stores Food Processing Eqp Light IndustryRANCHO MIRAGE4.1% 4.5% 8.3% 7.0% 21.6% 5.5%1,071,792991,8268.1%LeasingFood Processing Eqp Heavy IndustryLiquor StoresRIVERSIDE‐5.8% 4.6% 3.0% 12.6% 4.7%‐1.6%14,322,25713,953,8392.6%Electronic Equipment Food Markets I.T. Infrastructure Food Processing EqpSAN JACINTO0.3% 8.6% 16.9% 5.2%‐2.3%‐0.8%702,379650,5738.0%Light Industry Auto Sales ‐ Used Recreation Products Drug StoresTEMECULA‐3.7% 6.8%‐4.6% 21.5%‐6.4%‐32.6%8,155,4418,288,529‐1.6%I.T. Infrastructure BiotechnologyMiscellaneous OtherOffice EquipmentWILDOMAR‐8.3% 15.8% 23.3%‐11.6% 28.1% 26.3%465,223399,47316.5%Miscellaneous OtherApparel Stores Auto Sales ‐ Used Chemical ProductsRIVERSIDE COUNTYNon‐ConfidentialMuniServices, an Avenu CompanyATTACHMENT 39 AGENDA ITEM 7B Agenda item 7B RIVERSIDE COUNTY TRANSPORTATION COMMISSION DATE: April 22, 2019 TO: Budget and Implementation Committee FROM: Matt Wallace, Procurement Manager THROUGH: Theresia Trevino, Chief Financial Officer SUBJECT: Single Signature Authority Report STAFF RECOMMENDATION: This item is for the Committee to: 1) Receive and file the Single Signature Authority report for the third quarter ended March 31, 2019; and 2) Forward to the Commission for final action. BACKGROUND INFORMATION: Certain contracts are executed under single signature authority as permitted in the Commission’s Procurement Policy Manual adopted in June 2018. The Executive Director is authorized to sign services contracts that are less than $150,000 individually and in an aggregate amount not to exceed $1.5 million in any given fiscal year. Additionally, in accordance with Public Utilities Code Section 130323(c), the Executive Director is authorized to sign contracts for supplies, equipment, materials, and construction of all facilities and works under $50,000 individually. The attached report details all contracts that have been executed for the third quarter ended March 31, 2019, under the single signature authority granted to the Executive Director. The unused capacity of single signature authority for services at March 31, 2019 is $1,226,119. Attachment: Single Signature Authority Report as of March 31, 2019 10 CONSULTANT DESCRIPTION OF SERVICES ORIGINAL CONTRACT AMOUNT PAID AMOUNT REMAINING CONTRACT AMOUNT AMOUNT AVAILABLE July 1, 2018 $1,500,000.00 NetFile Form 700 E-filing and administration system 15,000.00 0.00 15,000.00 ECS Imaging, Inc.Laserfiche document management services 44,794.00 27,588.00 17,206.00 S2 Engineering, Inc.Construction Management Svcs. - La Sierra Parking Lot Expansion Project 150,000.00 144,069.06 5,930.94 Potter Handy DBA Center for Disability Settlement agreement 12,000.00 12,000.00 0.00 Macias, Gini, O'Connell State of Good Repair audited financial statements for FY18 and FY19 7,000.00 0.00 7,000.00 UCR School of Business Sales tax analysis for two additional revenue scenarios and a modified demographic forecast 16,000.00 0.00 16,000.00 Department of Toxic Substances Control Provide environmental hazard oversight and assessment for Downtown Riverside station platform expansion project 29,087.00 29,087.00 0.00 AMOUNT USED 273,881.00 273,881.00 $1,226,119.00 None N/A $- $- $- Jose Mendoza Theresia Trevino Prepared by Reviewed by AMOUNT USED SINGLE SIGNATURE AUTHORITY AS OF March 31, 2019 Note: Shaded area represents new contracts listed in the third quarter. AMOUNT REMAINING through March 31, 2019 Agreements that fall under Public Utilities Code 130323 (C) 11 AGENDA ITEM 8 Agenda Item 8 RIVERSIDE COUNTY TRANSPORTATION COMMISSION DATE: April 22, 2019 TO: Budget and Implementation Committee FROM: Michele Cisneros, Deputy Director of Finance THROUGH: Theresia Trevino, Chief Financial Officer SUBJECT: Proposed Budget for Fiscal Year 2019/20 STAFF RECOMMENDATION: This item is for the Committee to: 1) Discuss, review, and provide guidance on the proposed Fiscal Year 2019/20 Budget; 2) Open the public hearing in order to receive input and comments on the proposed FY 2019/20 Budget on May 8 and on June 12, 2019, and thereafter close the public hearing; and 3) Forward to the Commission for final action. BACKGROUND INFORMATION: Staff completed the initial budget preparation process and the attached executive summary for the proposed FY 2019/20 Budget. The policy goals and objectives approved by the Commission on March 13 were the basis for this budget. The long-term policy goals that support the Commission’s objectives considered during the preparation of the budget relate to promoting quality of life; achieving operational excellence; connecting the economy; being a responsible partner; and maintaining fiscal accountability. Staff will present highlights of significant items included in the budget and is seeking review of an input on the proposed FY 2019/20 Budget. Additionally staff recommends opening of the public hearing on May 8. As a result of input received from the public and the Commission, staff will make the necessary changes to the budget document for the Commission’s final review, closing of the public hearing, and adoption at its June 12 Commission meeting. The Commission’s budget is primarily project-driven, although the RCTC 91 Express Lanes added a service-driven component upon the commencement of toll operations in March 2017. As a project-driven agency, the Commission accumulates funds, or reserves, for specific projects and programs – resulting in flexibility to adjust project development or programs especially in times of economic downturns. The proposed FY 2019/20 Budget anticipates that total uses will exceed sources by approximately $142.8 million. Similar to prior years, the accumulated reserves, which include bond proceeds issued in FY 2017/18, will fund the deficiency. In the executive summary, Table 16 provides a summary of the projected fund balance at June 30, 2020, and tables 17-19 12 Agenda Item 8 provide a summary of budgeted sources and uses from different perspectives (comparative, operating and capital, and fund). Preliminary funding estimates for transit operating and capital expenditures have been included in the budget, although the draft Short Range Transit Plans are still under review. An adjustment for a revised estimate of these transit expenditures may be included in the final budget document presented in June 2019. A summary of the proposed FY 2019/20 Budget is as follows: FY 2019/20 Budget Revenues and other financing sources: Sales taxes-Measure A and Local Transportation Funds $ 290,000,000 Reimbursements (federal, state, and other) 272,475,800 Transportation Uniform Mitigation Funds, including reimbursements 25,000,000 State Transit Assistance 31,050,600 Tolls, penalties, and fees 41,869,400 Other revenues 553,000 Interest on investments 12,754,300 Debt proceeds 75,703,000 Transfers in 165,207,900 Total revenues and other financing sources 914,614,000 Expenditures and other financing uses: Personnel salaries and fringe benefits 19,396,500 Professional services 25,447,300 Support services 12,383,200 Projects and operations 753,055,300 Capital outlay 5,288,000 Debt service (principal and interest) 76,654,400 Transfers out 165,207,900 Total expenditures and other financing uses 1,057,432,600 Excess (deficiency) of revenues and other financing sources over (under) expenditures and other financing uses (142,818,600) Beginning fund balance (projected) 792,310,100 Ending fund balance (projected) $ 649,491,500 In the proposed FY 2019/20 Budget, staff included approximately $8.1 million to pay off the Commission’s estimated net pension liability as of June 30, 2019, which is based on an actuarial valuation. Paying off the net pension liability is projected to save approximately $7.5 million in 13 Agenda Item 8 interest charges. Staff intends to present this recommendation for approval at the May Executive Committee meeting, immediately preceding the May Commission meeting. At its June 12 Commission meeting, staff will present the entire budget document with detailed narratives. Attachment: Executive Summary for the Proposed FY 2019/20 Budget 14 Executive Summary Introduction The budget for Fiscal Year (FY) 2019/20 is presented to the Board of Commissioners (Board) and the citizens of Riverside County. The budget outlines the projects the Commission plans to undertake during the year and appropriates expenditures to accomplish these tasks. The budget also shows the funding sources and fund balances for these projects. This document serves as the Commission’s monetary guideline for the fiscal year. To provide the reader a better understanding of the projects, staff has included descriptive information regarding each department and major projects. The discussion in each department includes a review of accomplishments, major initiatives, and key assumptions. Policy Goals and Objectives As approved at its March 13, 2019 meeting, the Commission is driven by four core goals and underlying objectives for the people of Riverside County and the transportation system upon which they rely: QUALITY OF LIFE RCTC is focused on improving life for the people of Riverside County and empowering them to live life at their pace. Choice RCTC empowers the residents of Riverside County to choose how to get safely to where they are going. Environmental Stewardship RCTC protects and preserves the County’s environment for our residents. Mobility RCTC provides access, equity, and choice in transportation; RCTC is a mobility partner. Access RCTC projects are the connection to employment, schools, community institutions, parks, medical facilities and shopping in the community. Goods Movement RCTC facilitates the funding and delivery of projects that mitigate the impact of increased goods movement flow through Riverside County. OPERATIONAL EXCELLENCE RCTC is a responsible and conservative steward of taxpayer dollars. State of Good Repair RCTC invests in road safety and maintenance in its residents’ neighborhoods. Promises Fulfilled Projects are completed on-time, on-budget; RCTC delivers on its promises as a steward of Riverside County residents’ investment. Innovation Program and project delivery innovations drive results, savings, and greater economic opportunities for Riverside County residents. Information RCTC operations are transparent; customers get fast, timely, quality service. CONNECTING THE ECONOMY RCTC is a driver of economic growth in Riverside County. Workforce Mobility RCTC improves the economy by creating a robust workforce to workplace system; RCTC helps move the economy of Riverside County. Population Growth Since 1976, RCTC has been responsible for connecting our County’s economy as the County’s population has quadrupled from 550,000 to 2.3 million today. Economic Impact RCTC has invested $4 billion in the County’s economy thanks to Measure A and future toll revenues, which has a multiplier impact in terms of jobs and economic opportunity throughout Riverside County. 15 RESPONSIBLE PARTNER RCTC partners with local, regional, and state governments to deliver road and transit projects. Streets and Roads RCTC invests in local priorities for maintaining streets and roads and fixing potholes. Transit RCTC is a partner with transit operators to provide residents mobility choices, flexibility, intercity and intercounty connectivity, and access. Active Transportation Facilities RCTC is a partner with agencies within the County to promote active transportation alternatives, including the building of regional trails and bicycle and pedestrian facilities in accordance with local general master and active transportation plans. Grants RCTC is a steward of state and federal grants to improve our communities. Local Measure A Value RCTC invests Measure A dollars into projects and programs that benefit local communities throughout the County. Staff used these core goals and objectives to prepare this budget and develop the following short-term objectives to guide further the development of the FY 2019/20 budget. Capital Project Development and Delivery  Continue design and construction of the Interstate (I) 15 Express Lanes and development of the 71/91 interchange improvements, State Route(SR) 60 truck climbing lanes, and Mid County Parkway projects included in the Western Riverside County Delivery Plan.  Commence development of the I-15 Express Lanes—Southern Extension project.  Maintain and enhance communication and collaboration with Caltrans to improve the Commission’s ability to deliver critical projects.  Enhance corridor mobility and traveler choice with the operation of the express lanes and development of the next generation toll projects.  Collaborate with local jurisdictions to implement the Transportation Uniform Mitigation Fee (TUMF) regional arterial program projects and facilitate the delivery of eligible arterial improvements in western Riverside County (Western County).  Continue active engagement in state and federal efforts to streamline and modernize the California Environmental Quality Act (CEQA) and the National Environmental Policy Act (NEPA) to improve the Commission’s ability to deliver critical projects. Toll Operations  Efficiently operate express lanes and achieve high customer satisfaction through reduction in congestion, mobility improvements, and management of demand. Regional Programs  Maintain an active involvement in state and federal legislative matters to ensure that the Commission receives proper consideration for transportation projects and funding.  Complete the development of a county-wide transportation plan and the first ten-year update of the 2009 Measure A Expenditure Plan, as required by the ordinance.  Subsidize reliable and cost-effective Metrolink commuter rail service to and from Riverside County; Southern California Regional Rail Authority (SCRRA) is the operator of Metrolink.  Provide leadership in the planning and development of the Coachella Valley-San Gorgonio Pass corridor rail service.  Support innovative programs that provide transit assistance in hard to serve rural areas or for riders with special transit needs.  Promote cost controls and operating efficiency for transit operators.  Maintain effective partnerships among commuters, employers, and government to increase the efficiency of our transportation system by encouraging and promoting motorized and non- motorized transportation alternatives.  Provide a motorist aid system that ensures safety and convenience to freeway motorists. 16 Management Services  Maintain close communication with Commissioners and educate policy makers on all issues of importance to the Commission.  Develop and execute a communications and public engagement strategy for the purposes of education, information, and customer service.  Maintain administrative program delivery costs below the policy threshold of 4% of Measure A revenues; the FY 2019/20 Management Services budget is 1.48% of Measure A revenues.  Maintain administrative salaries and benefits at less than 1% of Measure A revenues; the FY 2019/20 administrative salaries and benefits is 0.73% of Measure A revenues before the one-time disbursement to pay off the Commission’s California Public Employees’ Retirement System (CalPERS) net pension liability. The administrative program share of the $8.1 million net pension liability is $2.5 million, or 31%. The inclusion of this one-time disbursement in FY 2019/20 results in the administrative salaries and benefits at 1.39% of Measure A revenues; however, the one-time disbursement to pay off the net pension liability is related to the projected benefits to employees for past service. Accordingly, the impact to the administrative salaries and benefits will be retroactively applied to prior fiscal years without exceeding the 1% limitation in FY 2019/20 or prior fiscal years.  Maintain prudent cash reserves to provide some level of insulation for unplanned expenditures.  Maintain current strong bond ratings with rating agencies.  Establish and maintain revenues and reserves generated from toll operations to be available for debt service in accordance with toll supported debt agreements; maintenance, repair, rehabilitation, administration and operations; and capital projects within the corridor. Linking Commission Policy Goals and Departmental Goals and Objectives The following matrix (Table 1) illustrates the linkage of the Commission’s core policy goals described in this section to the individual departmental goals and objectives included in Section 5. Table 1 – Relationship between Commission and Departmental Goals Department Quality of Life Operational Excellence Connecting the Economy Responsible Partner Management Services Executive Management X X X X Administration X External Affairs X X X Finance X Regional Programs Planning and Programming X X X X Rail Maintenance and Operations X X X X Public and Specialized Transit X X X X Commuter Assistance X X X X Motorist Assistance X X X Capital Project Development and Delivery X X X X Toll Operations X X X X Budget Overview Total sources (Table 2) are budgeted at $914,614,000, an increase of 17% over FY 2018/19 projected sources and flat over the FY 2018/19 budget. Total sources are comprised of revenues of $673,703,100, transfers in of $165,207,900, and debt proceeds of $75,703,000. The projected fund balance at June 30, 2019 available for expenditures/expenses (excluding amounts restricted for debt service of $14,422,700 and advances receivable of $22,986,000) is $754,901,400. Accordingly, total funding available for the FY 2019/20 budget totals $1,669,515,400. 17 Table 2 – Sources FY 2018-2020 FY 17/18 FY 18/19 FY 18/19 FY 19/20 Dollar Percent Actual Revised Budget Projected Budget Change Change Measure A Sales Tax 176,301,700$ 192,000,000$ 192,000,000$ 193,000,000$ 1,000,000$ 1% LTF Sales Tax 89,557,600 96,000,000 96,000,000 97,000,000 1,000,000 1% STA Sales Tax 21,320,900 23,203,600 27,110,700 31,050,600 7,847,000 34% Intergovernmental 88,207,000 249,188,300 160,549,900 272,475,800 23,287,500 9% TUMF Revenue 23,699,800 25,922,200 26,672,200 25,000,000 (922,200) -4% Tolls, Penalties, and Fees 50,446,800 36,940,500 47,756,900 41,869,400 4,928,900 13% Other Revenue 3,199,500 1,084,400 468,500 553,000 (531,400) -49% Investment Income 9,117,000 3,408,000 10,064,800 12,754,300 9,346,300 274% Transfers In 323,263,800 182,214,300 158,206,600 165,207,900 (17,006,400) -9% Debt Proceeds 735,488,800 106,081,000 61,841,100 75,703,000 (30,378,000) -29% TOTAL Sources 1,520,602,900$ 916,042,300$ 780,670,700$ 914,614,000$ (1,428,300)$ 0% Riverside County has specific competitive advantages over nearby coastal counties (Los Angeles, Orange, and San Diego), including housing that is more available and affordable as well as plentiful commercial real estate and land available for development at lower costs. Riverside County’s economy is benefitting from employment gains that are a function of the County’s ability to attract businesses with lower commercial rents and a skilled labor force. Population migration to the Inland Empire (i.e., Riverside and San Bernardino counties) has occurred due to these employment opportunities and a lower cost of living compared to the coastal counties. Improvements in the local labor market and housing advantages have increased economic activity contributing to stable sales tax revenue growth as noted on Chart 3. Chart 3 – Sources: Five-Year Trend $0 $100,000,000 $200,000,000 $300,000,000 $400,000,000 $500,000,000 $600,000,000 $700,000,000 $800,000,000 FY 15/16 FY 16/17 FY 17/18 FY 18/19 FY 19/20 Measure A Sales Tax LTF Sales Tax STA Sales Tax TUMF Federal, State, Local Revenues Toll Revenue Transfers In Debt Proceeds Sales tax revenues have continued to remain stable during the last five fiscal years. The Commission’s economic outlook for FY 2019/20 continues to be cautiously optimistic; however, availability of state and federal funds could affect funding of the Commission’s capital projects and programs. Should Measure A and LTF sales tax revenues fluctuate and the availability of federal and state revenues continue to be uncertain, the timing and scope of the Commission’s projects and programs may be impacted. Regardless of the future economic conditions, the Commission faces formidable ongoing challenges in terms of providing needed infrastructure enhancements to support a population and an economy that has outgrown the capacity of its existing infrastructure. Fortunately, the foundation of the regional economy continues to retain many of the fundamental positive attributes that fueled its earlier growth, including lower priced real estate with proximity to coastal communities, a large pool of skilled workers, and increasing wealth and education levels. While the Commission’s primary revenues are the Measure A and LTF sales taxes, other revenues and financing sources are required to fund the Commission’s programs and projects as illustrated in Chart 4. 18 Chart 4 – Sources: Major Categories Measure A Sales Tax 21% LTF Sales Tax 11% STA Sales Tax 3% Intergovernmental30% TUMF Rev enue 3% Tolls, Penalties, and Fees 5% Investment Income1% Transfers In18% Debt Proceeds 8% The California Department of Tax and Fee Administration (CDTFA), as statutorily created and authorized successor to the former California State Board of Equalization, recently provided to cities and other agencies its projections that statewide taxable sales over the next fiscal year will increase 3.6%. Continuing its conservative projection practices, the Commission also considers short- and long-term sales tax projections from its consultants to estimate sales tax revenues. After taking the state of the local economy, recent revenue trends, and the impact of CDTFA new automation system delays into consideration, staff projects Measure A sales tax revenues of $193,000,000 for FY 2019/20. This is a 1% increase from the FY 2018/19 revised projection of $192,000,000, which reflects FY 2017/18 sales tax revenues processed in FY 2018/19 due to CDTFA’s new system implementation issues. These issues caused a backlog of unprocessed sales tax returns at the end of FY 2017/18 that were processed and reflected in FY 2018/19. At midyear the Commission will reassess sales tax revenue projections based on the economy and revenue trends. On behalf of the County, the Commission administers the LTF for public transportation needs, local streets and roads, and bicycle and pedestrian facilities. The majority of LTF funding received by the County and available for allocation is distributed to all public transit operators in the County, and the Commission receives allocations for administration, planning, and programming in addition to funding for Western County rail operations included in the commuter rail Short Range Transit Plan (SRTP). The LTF sales tax revenue received from the State is budgeted at $97,000,000, an increase of 1% from the FY 2018/19 revised projection of $96,000,000. LTF sales tax revenues in FY 2017/18 and FY 2018/19 were also impacted by the CDTFA implementation issues. A statewide sales tax on motor vehicle diesel fuel generates STA funds, which the State Controller allocates by formula to the Commission for allocations to the County’s public transit operators. Beginning in FY 2017/18, Senate Bill (SB) 1 provides additional STA revenues, also referred to as State of Good Repair (SGR), for transit maintenance, rehabilitation, and capital projects. The FY 2019/20 STA/SGR allocations, based on recent State estimates, is $31,050,600. 19 Intergovernmental revenues include reimbursement revenues from federal sources of $88,718,700, state sources of $173,799,200, and local agencies of $9,957,900 for highway and rail capital projects, rail operations and station maintenance, commuter assistance, and motorist assistance programs as well as planning and programming activities. The increase of 9% in FY 2019/20 compared to the FY 2018/19 budget is related to increases in state and federal reimbursements offset by a decrease in local reimbursements. SB 132 provides state funding for the 15/91 Express Lanes connector and pass-through funding to the County for the I-15/Limonite interchange and Hamner Bridge widening and to the County and city of Corona for grade separation projects. Other state reimbursements will fund the State Route (SR) 60 truck lanes, Pachappa underpass, and station rehabilitation projects. Federal reimbursements provide funding for the I-15 Express Lanes, I-15 Express Lanes – Southern Extension, SR-60 truck lanes, Pachappa underpass, and station rehabilitation projects. Reimbursement revenues vary from year to year depending on project activities and funding levels. Based on an amended Memorandum of Understanding (MOU) with the Western Riverside Council of Governments (WRCOG), the Commission receives 45.7% of TUMF revenues (as updated by the most recent Nexus study). TUMF represents fees assessed on new residential and commercial development in Western County. The Commission projects FY 2019/20 TUMF fees will remain flat at $25,000,000. The 4% decrease is related to additional TUMF zone reimbursements for the Lake Elsinore Railroad Canyon project in FY 2018/19. FY 2018/19 marked the second complete fiscal year of toll operations for the RCTC 91 Express Lanes following substantial completion of the 91 Project in March 2017. Since toll revenues surpassed 2013 financing assumptions, the Commission obtained an updated Riverside County 91 Express Lanes Extension Investment Grade Traffic and Revenue Study in December 2018. The Commission conservatively estimates FY 2019/20 toll revenues of $41,869,400 based on current operations and the updated study. Other revenue of $553,000 includes property management generated from properties acquired in connection with various highway and rail properties. The Commission anticipates a 274% increase in FY 2019/20 investment income due to extremely conservative investment yield projections in the FY 2018/19 budget. The FY 2019/20 budget projects investment income at a 2% investment yield, compared to less than 1% in prior year budgets. Transfers in of $165,207,900 relate primarily to the transfer of available debt proceeds for highway projects; LTF funding for general administration, planning and programming, rail operations, and grade separation project allocations; approved interfund allocations for specific projects and administrative cost allocations; and debt service requirements from highway, regional arterial, and local streets and roads funds. Debt proceeds consist of $75,703,000 in drawdowns from the federal Transportation Infrastructure Finance and Innovation Act (TIFIA) loan related to the I-15 Express Lanes project. Total uses (Table 3), including transfers out of $165,207,900, are budgeted at $1,057,432,600, a 6% decrease from the prior year budget amount of $1,123,634,900. Program expenditures and transfers out totaling $956,364,700 represent 90% of total budgeted uses in FY 2019/20. Program costs decreased by 5% from $1,003,365,500 in FY 2018/19 due to projects and programs identified below. 20 Table 3 – Uses FY 2018-2020 FY 17/18 FY 18/19 FY 18/19 FY 19/20 Dollar Percent Actual Revised Budget Projected Budget Change Change Capital Highway, Rail, and Regional Arterials 517,040,000$ 631,599,300$ 430,098,100$ 606,640,600$ (24,958,700)$ -4% Capital Local Streets and Roads 53,176,800 58,479,500 58,479,500 58,642,300 162,800 0% Commuter Assistance 4,447,700 6,199,600 4,708,300 4,880,800 (1,318,800) -21% Debt Service 664,013,700 96,675,600 92,205,600 76,654,400 (20,021,200) -21% Management Services 22,184,500 23,593,800 19,784,300 24,413,500 819,700 3% Motorist Assistance 4,909,300 10,004,600 7,946,300 9,364,500 (640,100) -6% Planning and Programming 4,293,800 20,464,700 6,045,300 14,512,900 (5,951,800) -29% Public and Specialized Transit 113,456,700 210,341,400 152,669,200 193,728,700 (16,612,700) -8% Rail Maintenance and Operations 24,161,700 41,119,800 34,413,400 46,228,500 5,108,700 12% Toll Operations 11,849,700 25,156,600 21,695,000 22,366,400 (2,790,200) -11% TOTAL Uses 1,419,533,900$ 1,123,634,900$ 828,045,000$ 1,057,432,600$ (66,202,300)$ -6% Note: Management Services includes Executive Management, Administration, External Affairs, and Finance. Capital highway, rail, and regional arterials budgeted uses of $606,640,600 are 4% lower compared to the FY 2018/19 budget due to project activity on the I-15 Express Lanes, significant completion of a 2009 Measure A Western County Regional Arterial (MARA) project, and decreased transfers out related to debt proceeds from the capital projects fund to a special revenue fund to finance 2009 Measure A Western County highway projects. Local streets and roads expenditures of $58,642,300 reflect an increase of $162,800 over the FY 2018/19 budget and represent the disbursements to local jurisdictions for the construction, repair, and maintenance of local streets and roads. Commuter assistance budgeted expenditures of $4,880,800 are 21% lower than FY 2018/19 budget due to transfers out for a transit incentive project in Western County in the prior year. Debt service of $76,654,400 decreased 21% due to $20 million of toll-operation surplus revenues deposited to the 2013 TIFIA loan reserve fund in FY 2018/19 as required under the TIFIA loan agreement. Management services expenditures of $24,413,500 increased 3% primarily due to a one-time disbursement in FY 2019/20 to fund the Commission’s CalPERS net pension liability. Expenditures under management services include information technology equipment upgrades, robust communication and engagement efforts, financial advisory services, and debt service contribution. Motorist assistance expenditures of $9,364,500 decreased 6% due to higher SAFE matching transfers out for FSP services in FY 2018/19. Planning and programming budgeted expenditures of $14,512,900 reflect a 29% decrease from the FY 2018/19 budget due to decreased projects and operations activities in connection with LTF disbursements for planning and programming, other agency projects, and special studies. Public and specialized transit budgeted expenditures of $193,728,700 are 8% lower than the FY 2018/19 budget due to decreased operating expenditures for public transit. The rail maintenance and operations budgeted expenditures of $46,228,500 are 12% higher than the FY 2018/19 budget due to funding received for the special event train platform in the city of Indio. Toll operations expenses are budgeted at $22,366,400 to manage the operations, maintenance, and capital support of the RCTC 91 Express Lanes and pay interest on toll revenue bonds. The 11% decrease is due to decreased transfers out related to toll operations surplus revenues to fund the 91 corridor operations project. Chart 5 is an illustration of total uses included in the FY 2019/20 budget by major categories. 21 Chart 5 – Uses: Major Categories Capital Highway, Rail, and Regional Arterials 57% Capital Local Streets and Roads 6% Commuter Assistance 1% Debt Service 7% Management Services 2% Motorist Assistance 1% Planning and Programming 1% Public and Specialized Transit 18% Rail Maintenance and Operations 5% Toll Operations 2% Commission Personnel The Commission’s salaries and benefits total $19,396,500 for FY 2019/20. This represents an increase of $9,041,800 or 87% over the FY 2018/19 budget of $10,354,700 (Chart 6). The increase relates primarily to the one-time disbursement to fund the CalPERS net pension liability of $8.1 million. The FY 2019/20 budget also includes three additional full-time equivalents (FTE) and a 4% pool for performance merit- based salary increases. The Commission’s salary schedule for FY 2019/20 is included in Appendix E and complies with Government Code §20636 “Compensation Earnable” and California Code of Register §570.5, “Requirements for a Publicly Available Pay Schedule.” Chart 6 – Salaries and Benefits Cost: Five-Year Comparison $- $5,000,000 $10,000,000 $15,000,000 $20,000,000 $25,000,000 FY 15/16 FY 16/17 FY 17/18 FY 18/19 FY 19/20 The FTE of 54 positions included in the FY 2019/20 budget (Table 4) reflects a 3.0 FTE increase related to the recruitment of a financial analyst and a toll senior management analyst in preparation for the opening of the 15 Express Lanes and an accounting supervisor. The Commission accomplished significant organization changes over the past few years related to various projects requiring substantial attention at many staff levels. Management continues to be firmly committed to the intent of the Commission’s enabling legislation requiring a lean organization. The Commission will continue providing 22 staff the tools needed to ensure an efficient and productive work environment. However, small should not be viewed in an absolute context; it is relative to the required tasks and the demands to be met. Table 4 – Full-Time Equivalents by Department FY 2018—2020 FY 17/18 FY 18/19 FY 19/20 Executive Management 0.6 0.6 0.6 Administration 5.7 5.6 5.8 External Affairs 4.5 3.7 4.0 Finance 8.3 8.3 9.1 Planning and Programming 4.2 5.3 5.4 Rail Maintenance and Operations 3.6 4.2 3.6 Public and Specialized Transit 2.2 2.5 2.8 Commuter Assistance 1.4 1.6 1.4 Motorist Assistance 0.9 1.2 1.0 Capital Project Development and Delivery 13.0 15.5 16.7 Toll Operations 2.6 2.5 3.6 TOTAL 47.0 51.0 54.0 The Commission provides a comprehensive package of benefits to employees. The package includes: health, dental, vision, life insurance, short and long-term disability, workers’ compensation, tuition assistance, sick and vacation leave, retirement benefits in the form of participation in the CalPERS, postretirement health care, deferred compensation, and employee assistance program. Chart 7 illustrates the compensation components. Chart 7 – Personnel Salaries and Benefits Salaries 33% Retirement 55% Health 7% Other Fringes 5% In prior years, salaries represented more than half of personnel costs; however, in FY 2019/20, the Commission intends to make a one-time disbursement of $8.1 million to fund the Commission’s CalPERS net pension liability. As a result, retirement costs in the FY 2019/20 budget represent 55% of the personnel salaries and benefits expenditures. Department Initiatives Staff prepared each department’s budget based on key assumptions, accomplishments in FY 2018/19, major initiatives for FY 2019/20, and department goals and related objectives. Tables 5 through 15 present the key initiatives and summary of expenditures/expenses for each department. 23 Executive Management  Continue project development and delivery as the key Measure A priority.  Foster growth in usage of express lanes and ensure their financial success.  Monitor SR-91 corridor operations and effectiveness.  Complete a long-range transportation plan to guide future transportation priorities for the County.  Continue planning efforts to advance passenger rail service in the Coachella Valley-San Gorgonio Pass corridor.  Advocate for state and federal investments in transportation to fund needed transportation priorities in the County and stimulate the local economy.  Maintain regional cooperation and collaboration as a significant effort consistent with the philosophy and mission of the Commission.  Support a comprehensive social media outreach program to build awareness of the Commission and its role in the community.  Maintain an effective mid-sized transportation agency with dedicated staff. Table 5 – Executive Management FY 17/18 FY 18/19 FY 18/19 FY 19/20 Dollar Percent Actual Revised Budget Projected Budget Change Change Personnel 284,600$ 253,000$ 252,700$ 445,100$ 192,100$ 76% Professional 122,300 230,000 150,000 235,000 5,000 2% Support 65,500 88,600 75,300 93,600 5,000 6% Transfers Out 21,600 - - - - N/A TOTAL 494,000$ 571,600$ 478,000$ 773,700$ 202,100$ 35%  Administration  Provide high quality support services to the Commission and to internal and external customers.  Maintain an accurate and efficient electronic records management system.  Invest in an agenda management system to improve efficiencies and enhance transparency.  Provide timely communications and high quality support services to Commissioners.  Update technology to improve internal processes and interaction with the public.  Support and develop a motivated workforce with a framework of activities and practices that comply with employment laws and regulations.  Employ and recruit a dynamic and talented workforce. Table 6 – Administration FY 17/18 FY 18/19 FY 18/19 FY 19/20 Dollar Percent Actual Revised Budget Projected Budget Change Change Personnel 677,000$ 723,700$ 686,700$ 1,483,800$ 760,100$ 105% Professional 571,500 847,800 758,700 1,086,500 238,700 28% Support 694,100 1,015,800 850,400 1,089,500 73,700 7% Capital Outlay 381,900 511,300 508,000 461,000 (50,300) -10% Debt Service 24,900 - - - - N/A Transfers Out 153,500 - - - - N/A TOTAL 2,502,900$ 3,098,600$ 2,803,800$ 4,120,800$ 1,022,200$ 33%    External Affairs  Develop effective partnerships with transportation providers to communicate a unified message to Congress regarding mobility needs.  Advocate positions in the State Legislature and in Congress that advance the County’s transportation interests.  Continue a leadership role in formulating a countywide direction on federal transportation policies.  Prepare federal transportation funding reauthorization principles in preparation for congressional and administrative deliberations on the next surface transportation law.  Conduct a concerted outreach effort to new federal and state representatives on local transportation issues.  Utilize modern technology to support a robust public communication and engagement effort focusing on accessible and transparent communication of the Commission’s projects. 24 �� Develop marketing and communication plans for the RCTC 91 Express Lanes and the I-15 Express Lanes project. �� Continue the public outreach program,  Operation Lifesaver , targeting schools in close proximity to railroad tracks on rail safety education, engineering, and enforcement. Table 7  External Affairs FY 17/18 FY 18/19 FY 18/19 FY 19/20 Dollar Percent Actual Revised Budget Projected Budget Change Change Personnel 855,100$ 849,100$ 848,900$ 1,542,000$ 692,900$ 82% Professional 1,083,500 1,003,400 1,001,400 1,111,000 107,600 11% Support 101,700 412,400 323,500 612,900 200,500 49% Transfers Out 124,700 - - - - N/A TOTAL 2,165,000$ 2,264,900$ 2,173,800$ 3,265,900$ 1,001,000$ 44%� Finance �� Continue appropriate uses of long- and short-term financing to advance the Commission s 2009 Measure A projects. �� Provide support to the 91 Express Lanes toll operations contractor back offices to ensure the proper accounting of toll revenues and operations and maintenance costs. �� Keep abreast of Governmental Accounting Standards Board (GASB) technical activities affecting the Commission s accounting and financial reporting activities and implement new pronouncements. �� Upgrade the Enterprise Resource Planning (ERP) system to benefit all staff in the management of accounting and project information and automation of a paperless workflow system. �� Manage a centralized procurements process in order to strengthen controls and ensure consistency in the application of procurement policies and procedures and adherence to applicable laws and regulations. �� Support outreach activities to encourage disadvantaged business enterprise (DBE) and small business enterprise (SBE) participation in various contracts. Table 8  Finance FY 17/18 FY 18/19 FY 18/19 FY 19/20 Dollar Percent Actual Revised Budget Projected Budget Change Change Personnel 1,146,000$ 1,182,300$ 1,138,600$ 2,511,300$ 1,329,000$ 112% Professional 1,518,100 2,235,800 1,405,300 2,200,100 (35,700) -2% Support 369,600 543,500 431,400 608,800 65,300 12% Capital Outlay - 513,700 100,000 845,000 331,300 64% Transfers Out 14,013,800 13,183,400 11,253,400 10,087,900 (3,095,500) -23% TOTAL 17,047,500$ 17,658,700$ 14,328,700$ 16,253,100$ (1,405,600)$ -8%� � Planning and Programming �� Monitor funding authority and responsibility related to the State Transportation Improvement Program (STIP). �� Ensure administration and implementation of STIP/Regional Improvement Program (RIP), Active Transportation Program (ATP), and other funded projects consistent with California Transportation Commission (CTC), California Department of Transportation (Caltrans), and Southern California Association of Governments (SCAG) policies. �� Continue to strategically program projects for all local agencies countywide into the Federal Transportation Improvement Program (FTIP) and obligate funds in an expeditious manner for the maximum use of all available funding, including monitoring the use of such funding to prevent from lapsing. �� Monitor all projects programmed to receive 2009 Measure A, TUMF, state, and federal funds to ensure timely delivery and prevent funds from lapsing. �� Focus on interregional concerns and maintain effective working relationships involving various multi- county transportation issues, including goods movement. 25 �� Coordinate planning efforts with regional and local agencies relating to the development of Regional Transportation Plan/Sustainable Communities Strategy (RTP/SCS) and greenhouse gas reduction (GHG) implementation guidelines. �� Participate in the CTC and Caltrans s forums in preparation and evaluation of ATP projects for the statewide and MPO funding programs to represent the County s best interest in program funding. �� Administer the Bicycle and Pedestrian Facilities Program (SB 821). �� Continue the development of a countywide integrated long-range transportation plan consistent with local, regional, and state planning requirements. Table 9  Planning and Programming FY 17/18 FY 18/19 FY 18/19 FY 19/20 Dollar Percent Actual Revised Budget Projected Budget Change Change Personnel 1,008,000$ 1,037,400$ 887,900$ 2,186,800$ 1,149,400$ 111% Professional 95,900 343,900 122,200 294,000 (49,900) -15% Support 22,100 19,500 16,800 21,600 2,100 11% Projects and Operations 2,779,000 18,046,500 3,991,000 8,787,100 (9,259,400) -51% Transfers Out 388,800 1,017,400 1,027,400 3,223,400 2,206,000 217% TOTAL 4,293,800$ 20,464,700$ 6,045,300$ 14,512,900$ (5,951,800)$ -29% Rail Maintenance and Operations �� As a member of the SCRRA, continue active participation in the governance and operations of the Metrolink commuter rail system. �� Continue the planning and implementation of capital improvements at the commuter rail stations in the County, including security and rehabilitation projects and parking requirements. �� Continue to support and evaluate activities related to the Perris Valley Line (PVL) service, such as promoting ridership. �� Establish the best approach to build, maintain, and operate cost effective and environmentally sustainable facilities that meet the public s transportation needs. �� Lead the service development process and actively coordinate with all stakeholders along the Coachella Valley-San Gorgonio Pass corridor for intercity passenger rail service. �� Advance the next generation rail feasibility study to evaluate future growth opportunities for passenger rail in the County. �� Construct the special trains platform in the city of Indio to serve the music festival events and reduce congestion. Table 10  Rail Maintenance and Operations FY 17/18 FY 18/19 FY 18/19 FY 19/20 Dollar Percent Actual Revised Budget Projected Budget Change Change Personnel 586,000$ 820,900$ 628,500$ 1,184,000$ 363,100$ 44% Professional 1,426,300 3,224,000 1,979,800 10,332,700 7,108,700 220% Support 2,250,000 3,346,800 2,399,500 3,305,200 (41,600) -1% Projects and Operations 19,271,100 32,755,600 28,434,000 30,246,600 (2,509,000) -8% Capital Outlay 47,800 89,600 88,700 180,000 90,400 101% Transfers Out 580,500 882,900 882,900 980,000 97,100 11% TOTAL 24,161,700$ 41,119,800$ 34,413,400$ 46,228,500$ 5,108,700$ 12% Public and Specialized Transit �� Coordinate the operation of all public transportation services within the County by promoting program efficiency between transit operators. �� Continue public transit operator oversight and fiduciary responsibilities to ensure completion of annual fiscal audits and state triennial performance audits in accordance with TDA regulations. �� Support innovative programs that provide transit assistance in hard to serve rural areas or for riders having very special transit needs and monitor funding of these programs. �� Continue long-range planning activities to ensure that anticipated revenues are in line with projected levels of service by transit operators. �� Develop a TDA manual for transit operators receiving allocations from the Commission. 26 Table 11 – Public and Specialized Transit FY 17/18 FY 18/19 FY 18/19 FY 19/20 Dollar Percent Actual Revised Budget Projected Budget Change Change Personnel 391,700$ 450,200$ 462,000$ 895,100$ 444,900$ 99% Professional 107,600 314,000 252,900 299,700 (14,300) -5% Support 50,300 63,900 64,000 69,200 5,300 8% Projects and Operations 90,683,100 180,911,000 124,584,600 162,004,400 (18,906,600) -10% Transfers Out 22,224,000 28,602,300 27,305,700 30,460,300 1,858,000 6% TOTAL 113,456,700$ 210,341,400$ 152,669,200$ 193,728,700$ (16,612,700)$ -8% Commuter Assistance  Improve the suite of services and outreach to rideshare participants and employer partners, including personalized information and electronic access and distribution.  Transition from a locally provided Inland Empire-based rideshare and vanpool system to a regional platform.  Maintain and grow employer partnerships through value-added services and tools for ridesharing programs.  Maintain the long-term partnership with San Bernardino County Transportation Authority (SBCTA) to manage and implement a “sister” commuter assistance program for residents and employers in San Bernardino County.  Optimize park and ride facilities to support car/vanpool/buspool arrangements and facilitate transit connections.  Operate a cost-effective program within the County that results in reduction of single occupant vehicles. Table 12 – Commuter Assistance FY 17/18 FY 18/19 FY 18/19 FY 19/20 Dollar Percent Actual Revised Budget Projected Budget Change Change Personnel 258,300$ 290,000$ 289,900$ 436,500$ 146,500$ 51% Professional 492,500 466,400 387,600 542,700 76,300 16% Support 178,700 362,800 88,900 285,800 (77,000) -21% Projects and Operations 2,498,000 3,383,900 2,610,200 3,313,300 (70,600) -2% Transfers Out 1,020,200 1,696,500 1,331,700 302,500 (1,394,000) -82% TOTAL 4,447,700$ 6,199,600$ 4,708,300$ 4,880,800$ (1,318,800)$ -21% Motorist Assistance  Fulfill the callbox upgrade and removal program as identified in the approved 2019 Callbox Optimization Plan.  Maintain a high benefit-to-cost ratio related to the performance of the FSP program and expand service if funding opportunities arise.  Transition from a locally provided IE511 system to a regional southern California 511 solution.  Continue the call box system program to serve as a “safe net” for stranded motorists in the County. Table 13 – Motorist Assistance FY 17/18 FY 18/19 FY 18/19 FY 19/20 Dollar Percent Actual Revised Budget Projected Budget Change Change Personnel 123,700$ 198,200$ 172,000$ 280,900$ 82,700$ 42% Professional 352,300 528,200 276,100 522,000 (6,200) -1% Support 291,000 295,900 160,600 416,400 120,500 41% Projects and Operations 2,848,900 5,161,800 3,517,100 5,397,000 235,200 5% Transfers Out 1,293,400 3,820,500 3,820,500 2,748,200 (1,072,300) -28% TOTAL 4,909,300$ 10,004,600$ 7,946,300$ 9,364,500$ (640,100)$ -6% Capital Project Development and Delivery  Continue project work on the Western Riverside County Delivery Plan projects, including the I-15 Express Lanes, SR-60 truck lanes, Mid County Parkway, and Pachappa underpass projects.  Provide 2009 Measure A funding to the incorporated cities and the County for local streets and roads maintenance, repair, and construction and to the Coachella Valley Association of Governments (CVAG) for highways and regional arterials. 27 �� Provide TUMF regional arterial funding and support to local jurisdictions for regional arterial project engineering, right of way acquisition, and construction. �� Maintain a right of way acquisition and management program in support of capital projects and in the most cost effective manner within project schedules, while adhering to federal and state regulations. �� Maintain and manage the access, use, safety, and security of Commission-owned properties including commuter rail stations, properties in acquisition process, and income-generating properties. �� Develop strategies to implement alternative financing structures including public express lanes. Table 14  Capital Project Development and Delivery FY 17/18 FY 18/19 FY 18/19 FY 19/20 Dollar Percent Actual Revised Budget Projected Budget Change Change Personnel 3,005,300$ 3,911,900$ 3,911,800$ 7,077,600$ 3,165,700$ 81% Professional 7,664,400 8,907,200 5,218,600 6,833,600 (2,073,600) -23% Support 429,800 1,185,100 1,016,000 1,336,900 151,800 13% Projects and Operations 274,246,400 542,145,700 363,457,700 532,636,700 (9,509,000) -2% Capital Outlay 2,177,200 7,224,800 6,336,700 3,052,000 (4,172,800) -58% Debt Service 656,868,900 69,555,700 65,085,700 69,534,500 (21,200) 0% Transfers Out 282,693,700 126,704,100 108,636,800 114,346,100 (12,358,000) -10% TOTAL 1,227,085,700$ 759,634,500$ 553,663,300$ 734,817,400$ (24,817,100)$ -3% Toll Operations �� Manage the operations of the RCTC 91 Express Lanes adhering to the Commission s 91 Express Lanes Toll Policy. �� Manage toll operations using investment grade traffic and revenue studies and cost estimate assumptions specific to each express lane facility. �� Continue 15 Express Lanes toll planning through development of business rules and agency agreements. �� Provide timely and effective reporting of toll operation metrics including revenue, transactions, carpool usage, and performance indicators. �� Participate in the California Toll Operators Committee to advance regional and statewide tolling initiatives, technology, interoperability, and coordination among California toll agencies. Table 15  Toll Operations FY 17/18 FY 18/19 FY 18/19 FY 19/20 Dollar Percent Actual Revised Budget Projected Budget Change Change Personnel 510,300$ 638,000$ 638,000$ 1,353,400$ 715,400$ 112% Professional 815,400 2,351,000 2,350,000 1,990,000 (361,000) -15% Support and Maintenance 2,793,400 4,576,700 3,936,800 4,543,300 (33,400) -1% Projects and Operations 6,661,400 8,786,100 8,507,900 10,670,200 1,884,100 21% Capital Outlay 319,600 2,497,600 2,314,100 750,000 (1,747,600) -70% Debt Service 7,119,900 27,119,900 27,119,900 7,119,900 (20,000,000) -74% Transfers Out 749,600 6,307,200 3,948,200 3,059,500 (3,247,700) -51% TOTAL 18,969,600$ 52,276,500$ 48,814,900$ 29,486,300$ (22,790,200)$ -44% Fund Balances The projected total fund balance as of June 30, 2019 is $792,310,100. The Commission s expects the FY 2019/20 budgeted activities to result in a $142,818,600 decrease of total fund balance at June 30, 2020 to $649,491,500. The primary cause of the decrease is project activities in FY 2019/20 related to the I-15 Express Lanes project, completion of the 91 Project, Mid County Parkway project, rail station maintenance, TUMF regional arterial projects, and public transit allocations. Table 16 presents the components of the projected fund balance by program at June 30, 2020. 28 Table 16 – Projected Fund Balances by Fund Type and Program at June 30, 2020 Western County Coachella Valley Palo Verde Other Total Restricted: Bond Financing 11,438,300$ -$ -$ -$ 11,438,300$ Commuter Assistance 15,043,200 - - - 15,043,200 Debt Service - - - 17,771,200 17,771,200 Economic Development 12,733,500 - - - 12,733,500 Highways 35,879,600 38,250,400 - 69,954,800 144,084,800 Local Streets and Roads 1,000 1,300 600 - 2,900 New Corridors 28,994,600 - - - 28,994,600 Planning and Programming - - - 442,700 442,700 Public and Specialized Transit 8,172,700 1,681,700 - 141,693,400 151,547,800 Rail 25,561,000 - - 19,877,500 45,438,500 CETAP - - - 45,368,500 45,368,500 Regional Arterials 42,946,100 - - 42,924,700 85,870,800 Motorist Assistance - - - 8,958,000 8,958,000 Toll Operations - - - 77,626,800 77,626,800 Assigned: Management Services - - - 4,169,900 4,169,900 TOTAL Fund Balance 180,770,000$ 39,933,400$ 600$ 428,787,500$ 649,491,500$ Measure A Sales Tax Chart 8 illustrates the actual and projected trends in fund balances for each governmental and enterprise fund type from FY 2016/17 through FY 2019/20. Chart 8 – Projected Fund Balance Trends by Fund Type FY 2017 – 2020 $1,000,000 $101,000,000 $201,000,000 $301,000,000 $401,000,000 $501,000,000 $601,000,000 General Fund Special Revenue Funds Capital Projects Funds Debt Service Fund Enterprise Fund FY 16/17 FY 17/18 FY 18/19 FY 19/20 Budget Summary The overall budget for FY 2019/20 is presented in Table 17 by summarized line items, Table 18 by operating and capital classifications, and Table 19 by fund type. Highway, rail, and regional arterial program expenditures by project are summarized in Table 20. 29 Table 17 – Budget Comparative by Summarized Line Item FY 2018—2020  FY 17/18 FY 18/19 FY 18/19 FY 19/20 Dollar Percent Actual Revised Budget Projected Budget Change Change Revenues Measure A Sales Tax 176,301,700$ 192,000,000$ 192,000,000$ 193,000,000$ 1,000,000$ 1% LTF Sales Tax 89,557,600 96,000,000 96,000,000 97,000,000 1,000,000 1% STA Sales Tax 21,320,900 23,203,600 27,110,700 31,050,600 7,847,000 34% Federal Reimbursements 71,468,000 59,105,700 74,419,800 88,718,700 29,613,000 50% State Reimbursements 11,952,100 166,590,100 80,409,200 173,799,200 7,209,100 4% Local Reimbursements 4,786,900 23,492,500 5,720,900 9,957,900 (13,534,600) -58% TUMF Revenue 23,699,800 25,922,200 26,672,200 25,000,000 (922,200) -4% Tolls, Penalties, and Fees 50,446,800 36,940,500 47,756,900 41,869,400 4,928,900 13% Other Revenue 3,199,500 1,084,400 468,500 553,000 (531,400) -49% Investment Income 9,117,000 3,408,000 10,064,800 12,754,300 9,346,300 274% TOTAL Revenues 461,850,300 627,747,000 560,623,000 673,703,100 45,956,100 7% Expenditures/Expenses Personnel Salaries and Benefits 8,846,000 10,354,700 9,917,000 19,396,500 9,041,800 87% Professional and Support Professional Services 14,249,800 20,451,700 13,902,600 25,447,300 4,995,600 24% Support Costs 7,246,200 11,911,000 9,363,200 12,383,200 472,200 4% TOTAL Professional and Support Costs 21,496,000 32,362,700 23,265,800 37,830,500 5,467,800 17% Projects and Operations Program Operations 24,298,500 27,893,500 23,575,800 30,447,100 2,553,600 9% Engineering 8,155,100 36,537,600 13,617,300 22,436,000 (14,101,600) -39% Construction 21,408,500 131,796,700 73,057,200 155,418,000 23,621,300 18% Design Build 123,999,200 183,818,300 146,305,000 141,583,000 (42,235,300) -23% Right of Way/Land 39,048,100 95,615,000 35,950,600 108,498,500 12,883,500 13% Operating and Capital Disbursements 111,707,000 224,661,000 157,582,100 204,759,400 (19,901,600) -9% Special Studies 1,458,300 1,842,000 1,535,000 1,271,000 (571,000) -31% Local Streets and Roads 53,176,800 58,479,500 58,479,500 58,642,300 162,800 0% Regional Arterials 15,736,400 30,547,000 25,000,000 30,000,000 (547,000) -2% TOTAL Projects and Operations 398,987,900 791,190,600 535,102,500 753,055,300 (38,135,300) -5% Debt Service Principal Payments 62,141,000 25,965,000 21,495,000 27,245,000 1,280,000 5% Interest Payments 57,726,800 50,710,600 50,710,600 49,409,400 (1,301,200) -3% Cost of Issuance 2,256,100 - - - - N/A TOTAL Debt Service 122,123,900 76,675,600 72,205,600 76,654,400 (21,200) 0% Capital Outlay 2,926,500 10,837,000 9,347,500 5,288,000 (5,549,000) -51% TOTAL Expenditures/Expenses 554,380,300 921,420,600 649,838,400 892,224,700 (29,195,900) -3% Excess (deficiency) of Revenues over (under) Expenditures/Expenses (92,530,000) (293,673,600) (89,215,400) (218,521,600) 75,152,000 -26% Other Financing Sources (Uses) Transfers In 323,263,800 182,214,300 158,206,600 165,207,900 (17,006,400) -9% Transfers Out (323,263,800) (182,214,300) (158,206,600) (165,207,900) 17,006,400 -9% Debt Proceeds 615,775,000 - - - - N/A TIFIA Loan Proceeds - 106,081,000 61,841,100 75,703,000 (30,378,000) -29% Payment to Escrow Agent (541,889,800) (20,000,000) (20,000,000) - 20,000,000 -100% Bond Premium 119,713,800 - - - - N/A Net Financing Sources (Uses)193,599,000 86,081,000 41,841,100 75,703,000 (10,378,000) -12% Excess (deficiency) of Revenues over (under) Expenditures/Expenses and Other Financing Sources (Uses)101,069,000 (207,592,600) (47,374,300) (142,818,600) 64,774,000 -31% Beginning Fund Balance 738,615,400 839,684,400 839,684,400 792,310,100 (47,374,300) -6% ENDING FUND BALANCE 839,684,400$ 632,091,800$ 792,310,100$ 649,491,500$ 17,399,700$ 3% 30 Table 18 – Operating and Capital Budget FY 2019/20  FY 19/20 FY 19/20 FY 19/20 Operating Budget Capital Budget TOTAL Budget Revenues Measure A Sales Tax 26,650,000$ 166,350,000$ 193,000,000$ LTF Sales Tax 97,000,000 - 97,000,000 STA Sales Tax 31,050,600 - 31,050,600 Federal Reimbursements 9,480,000 79,238,700 88,718,700 State Reimbursements 13,890,500 159,908,700 173,799,200 Local Reimbursements 2,490,000 7,467,900 9,957,900 TUMF Revenue - 25,000,000 25,000,000 Tolls, Penalties, and Fees - 41,869,400 41,869,400 Other Revenue - 553,000 553,000 Investment Income 4,165,500 8,588,800 12,754,300 TOTAL Revenues 184,726,600 488,976,500 673,703,100 Expenditures/Expenses Personnel Salaries and Benefits 10,764,000 8,632,500 19,396,500 Professional and Support Professional Services 16,592,700 8,854,600 25,447,300 Support Costs 6,501,900 5,881,300 12,383,200 TOTAL Professional and Support Costs 23,094,600 14,735,900 37,830,500 Projects and Operations Program Operations 11,688,900 18,758,200 30,447,100 Engineering - 22,436,000 22,436,000 Construction 1,470,000 153,948,000 155,418,000 Design Build - 141,583,000 141,583,000 Right of Way and Land - 108,498,500 108,498,500 Operating and Capital Disbursements 188,909,400 15,850,000 204,759,400 Special Studies 1,271,000 - 1,271,000 Local Streets and Roads - 58,642,300 58,642,300 Regional Arterials - 30,000,000 30,000,000 T OTAL Projects and Operations 203,339,300 549,716,000 753,055,300 Debt Service Principal Payments - 27,245,000 27,245,000 Interest Payments - 49,409,400 49,409,400 TOTAL Debt Service - 76,654,400 76,654,400 Capital Outlay 1,486,000 3,802,000 5,288,000 TOTAL Expenditures/Expenses 238,683,900 653,540,800 892,224,700 Excess (deficiency) of Revenues over (under) Expenditures/Expenses (53,957,300) (164,564,300) (218,521,600) Other Financing Sources (Uses) Transfers In 43,258,800 121,949,100 165,207,900 Transfers Out (47,077,100) (118,130,800) (165,207,900) TIFIA Loan Proceeds - 75,703,000 75,703,000 Net Financing Sources (Uses)(3,818,300) 79,521,300 75,703,000 Excess (deficiency) of Revenues over (under) Expenditures/Expenses and Other Financing Sources (Uses)(57,775,600) (85,043,000) (142,818,600) Beginning Fund Balance 263,681,000 528,629,100 792,310,100 ENDING FUND BALANCE 205,905,400$ 443,586,100$ 649,491,500$   31 Table 19 – Budget by Fund Type FY 2019/20  FY 19/20 General Fund Special Revenue Capital Projects Debt Service Enterprise TOTAL Budget Revenues Measure A Sales Tax -$ 193,000,000$ -$ -$ -$ 193,000,000$ LTF Sales Tax - 97,000,000 - - - 97,000,000 STA Sales Tax - 31,050,600 - - - 31,050,600 Federal Reimbursements 8,000,000 77,915,500 - 2,803,200 - 88,718,700 State Reimbursements 3,068,000 170,731,200 - - - 173,799,200 Local Reimbursements 400 9,957,500 - - - 9,957,900 TUMF Revenue - 25,000,000 - - - 25,000,000 Tolls, Penalties, and Fees - - - - 41,869,400 41,869,400 Other Revenue - 553,000 - - - 553,000 Investment Income 490,500 9,021,500 1,371,700 348,500 1,522,100 12,754,300 TOTAL Revenues 11,558,900 614,229,300 1,371,700 3,151,700 43,391,500 673,703,100 Expenditures/Expenses Personnel Salaries and Benefits 9,324,600 8,718,500 - - 1,353,400 19,396,500 Professional and Support Professional Services 5,013,600 18,443,700 - - 1,990,000 25,447,300 Support Costs 2,877,000 4,962,900 - - 4,543,300 12,383,200 TOTAL Professional and Support Costs 7,890,600 23,406,600 - - 6,533,300 37,830,500 Projects and Operations Program Operations 2,000 19,774,900 - - 10,670,200 30,447,100 Engineering - 22,436,000 - - - 22,436,000 Construction 1,470,000 153,948,000 - - - 155,418,000 Design Build - 141,583,000 - - - 141,583,000 Right of Way/Land - 108,498,500 - - - 108,498,500 Operating and Capital Disbursements 27,005,000 177,754,400 - - - 204,759,400 Special Studies 1,271,000 - - - - 1,271,000 Local Streets and Roads - 58,642,300 - - - 58,642,300 Regional Arterials - 30,000,000 - - - 30,000,000 TOTAL Projects and Operations 29,748,000 712,637,100 - - 10,670,200 753,055,300 Debt Service Principal Payments - - - 27,245,000 - 27,245,000 Interest Payments - - - 42,289,500 7,119,900 49,409,400 TOTAL Debt Service - - - 69,534,500 7,119,900 76,654,400 Capital Outlay 1,306,000 3,232,000 - - 750,000 5,288,000 TOTAL Expenditures/Expenses 48,269,200 747,994,200 - 69,534,500 26,426,800 892,224,700 Excess (deficiency) of Revenues over (under) Expenditures/Expenses (36,710,300) (133,764,900) 1,371,700 (66,382,800) 16,964,700 (218,521,600) Other Financing Sources (Uses) Transfers In 40,408,800 52,264,600 - 72,534,500 - 165,207,900 Transfers Out (3,394,600) (131,548,200) (24,402,400) (2,803,200) (3,059,500) (165,207,900) TIFIA Loan Proceeds - 75,703,000 - - - 75,703,000 Net Financing Sources (Uses)37,014,200 (3,580,600) (24,402,400) 69,731,300 (3,059,500) 75,703,000 Excess (deficiency) of Revenues over (under) Expenditures/Expenses and Other Financing Sources (Uses)303,900 (137,345,500) (23,030,700) 3,348,500 13,905,200 (142,818,600) Beginning Fund Balance 23,699,700 597,480,600 92,985,500 14,422,700 63,721,600 792,310,100 ENDING FUND BALANCE 24,003,600$ 460,135,100$ 69,954,800$ 17,771,200$ 77,626,800$ 649,491,500$   32 Table 20 – Highway, Regional Arterial, and Rail Programs FY 2019/20  Description HIGHWAY ENGINEERING 60/215 Riverside ― Moreno Valley express lanes 300,000$ 71/91 connector 2,500,000 Grade separation projects 4,100,000 Hamner Bridge widening 508,000 I-15 Express Lanes southern extension 6,000,000 Mid County Parkway (MCP)500,000 MCP I-215/Placentia interchange 300,000 MCP Sweeney mitigation 50,000 MCP construction contract package 2,000,000 Pachappa underpass 100,000 Riverside County-Santa Ana River Trail (details presented in Sections 5.2 Planning and Programming and 5.3 Capital Projects)850,000 SR-60 Jurupa ― Riverside express lanes 325,000 SR-74 corridor ― Ethanac Road 1,157,700 SR-79 realignment 300,000 SR-91 downtown Riverside express lanes 325,000 General (details presented in Section 5.3 Capital Projects)86,000 SUBTOTAL HIGHWAY ENGINEERING 19,401,700 REGIONAL ARTERIAL ENGINEERING I-15 Railroad Canyon interchange 600,000 Various Western County MARA and TUMF regional arterial projects 364,300 SUBTOTAL REGIONAL ARTERIAL ENGINEERING 964,300 RAIL ENGINEERING Moreno Valley March Field station upgrade 900,000 Riverside layover facility 170,000 Riverside Downtown station track and platform 1,000,000 SUBTOTAL RAIL ENGINEERING 2,070,000 TOTAL HIGHWAY, REGIONAL ARTERIAL, AND RAIL ENGINEERING 22,436,000$ HIGHWAY CONSTRUCTION 15/91 Express Lanes connector 1,053,000$ 91 Project 1,471,000 I-15 Express Lanes 7,984,000 I-15/Limonite interchange 17,000,000 I-215 corridor improvements (central segment)/Scott Road to Nuevo Road 10,000 MCP I-215/Placentia interchange 13,000,000 MCP Sweeney mitigation 5,200,000 Pachappa underpass 15,900,000 Riverside County-Santa Ana River Trail (details presented in Sections 5.2 Planning and Programming and 5.3 Capital Projects)5,000,000 SR-60 truck lanes 69,000,000 SUBTOTAL HIGHWAY CONSTRUCTION 135,618,000 REGIONAL ARTERIAL CONSTRUCTION Various Western County MARA and TUMF regional arterial projects 13,900,000 SUBTOTAL REGIONAL ARTERIAL CONSTRUCTION 13,900,000 RAIL CONSTRUCTION Perris Valley Line and other related rail projects 30,000 Riverside layover facility 4,400,000 Other Riverside Downtown station mobility improvements (details presented in Section 5.2 Rail)1,470,000 SUBTOTAL RAIL CONSTRUCTION 5,900,000 TOTAL HIGHWAY, REGIONAL ARTERIAL, AND RAIL CONSTRUCTION 155,418,000$ HIGHWAY DESIGN BUILD 15/91 Express Lanes connector 41,718,000$ 60/215 Riverside ― Moreno Valley express lanes 200,000 91 corridor operations project 2,729,000 91 Project 6,923,000 I-15 Express Lanes 89,613,000 SR-60 Jurupa ― Riverside express lanes 200,000 SR-91 downtown Riverside express lanes 200,000 TOTAL HIGHWAY DESIGN BUILD 141,583,000$ HIGHWAY RIGHT OF WAY AND LAND 15/91 Express Lanes connector 495,000$ 60/215 East Junction high occupancy vehicle (HOV) lane connectors 10,000 71/91 connector 4,600,000 91 Project 16,722,000 Hamner bridge widening 149,000 I-15 Express Lanes 328,000 Jurupa Avenue grade separation 12,000,000 McKinley Avenue grade separation 14,000,000 MCP 10,400,000 MCP I-215/Placentia interchange 13,650,000 MSHCP land acquisition in Western County 3,000,000 Pachappa underpass 175,000 Riverside County-Santa Ana River Trail (details presented in Sections 5.2 Planning and Programming and 5.3 Capital Projects)205,000 SR-74/I-15 to 7th Street 15,000 SR-91 HOV lanes/Adams Street to 60/91/215 interchange 505,000 General (details presented in Section 5.3 Capital Projects)74,500 SUBTOTAL HIGHWAY RIGHT OF WAY AND LAND 76,328,500 REGIONAL ARTERIAL RIGHT OF WAY AND LAND I-15 Railroad Canyon interchange 2,200,000 Various Western County MARA and TUMF regional arterial projects 12,360,000 SUBTOTAL REGIONAL ARTERIAL RIGHT OF WAY AND LAND 14,560,000 RAIL RIGHT OF WAY AND LAND Riverside layover facility 210,000 Riverside Downtown station track and platform 17,250,000 General 150,000 SUBTOTAL RAIL RIGHT OF WAY AND LAND 17,610,000 TOTAL HIGHWAY, REGIONAL ARTERIAL, AND RAIL RIGHT OF WAY AND LAND 108,498,500$ GRAND TOTAL HIGHWAY, REGIONAL ARTERIAL, AND RAIL PROGRAMS 427,935,500$ 33 PROPOSED BUDGET FISCAL YEAR 2019/20 Michele Cisneros, Deputy Director of Finance Theresia Trevino, Chief Financial Officer Budget Process Budget Development Budget Compilation Budget Review and Adoption •Resource Estimation •Commission Goals •Department Goals and Budget Development •Analysis •Reconciliation •Initial: Executive summary •Final: Budget document FY 2019/20 Budget Considerations •Use of accumulated reserves for projects and programs, as necessary •Flexibility to change scope and timing of capital projects •Significant outsourcing of engineering and operations RCTC projects and programs •Use of LTF/STA reserves for transit operations and capital project needs •Use of Measure A and TUMF reserves for project expenditures Stabilized sales tax and TUMF revenues •Toll revenues based on historical data and updated traffic and revenue study RCTC 91 Express Lanes operations •TIFIA loan drawdown on the I -15 Express Lanes project Financing needs and related costs Budget Summary Sources Breakdown FY 2018/19 FY 2018/19 FY 2019/20 Revised Budget Projected Budget Measure A Sales Tax 192,000,000$ 192,000,000$ 193,000,000$ LTF Sales Tax 96,000,000 96,000,000 97,000,000 STA Sales Tax 23,203,600 27,110,700 31,050,600 Intergovernmental 249,188,300 160,549,900 272,475,800 TUMF Revenue 25,922,200 26,672,200 25,000,000 Tolls, Penalties, and Fees 36,940,500 47,756,900 41,869,400 Other Revenue 1,084,400 468,500 553,000 Investment Income 3,408,000 10,064,800 12,754,300 Transfers In 182,214,300 158,206,600 165,207,900 Debt Proceeds 106,081,000 61,841,100 75,703,000 TOTAL Sources 916,042,300$ 780,670,700$ 914,614,000$ Sources Comparison $- $50 $100 $150 $200 $250 $300 MillionsFY 2018/19 Revised Budget FY 2018/19 Projected FY 2019/20 Budget Expenditures/Expenses by Department FY 2018/19 FY 2018/19 FY 2019/20 Revised Budget Projected Budget Capital Highway, Rail, and Regional Arterials 631,599,300$ 430,098,100$ 606,640,600$ Capital Local Streets and Roads 58,479,500 58,479,500 58,642,300 Commuter Assistance 6,199,600 4,708,300 4,880,800 Debt Service 96,675,600 92,205,600 76,654,400 Management Services 23,593,800 19,784,300 24,413,500 Motorist Assistance 10,004,600 7,946,300 9,364,500 Planning and Programming 20,464,700 6,045,300 14,512,900 Public and Specialized Transit 210,341,400 152,669,200 193,728,700 Rail Maintenance and Operations 41,119,800 34,413,400 46,228,500 Toll Operations 25,156,600 21,695,000 22,366,400 TOTAL Expenditures/Expenses 1,123,634,900$ 828,045,000$ 1,057,432,600$ Expenditures/Expenses Comparison $- $50 $100 $150 $200 $250 $300 $350 $400 $450 $500 $550 $600 $650 MillionsFY 2018/19 Revised Budget FY 2018/19 Projected FY 2019/20 Budget Capital Development and Delivery Department Highlights 91 Project I-15 Express Lanes 15/91 Express Lanes Connector I-15/Limonite Interchange Mid County Parkway SR-60 Truck Lanes Expenditures/Expenses by Function FY 2018/19 FY 2018/19 FY 2019/20 Percent Revised Budget Projected Budget Change Salaries and Benefits 10,354,700$ 9,917,000$ 19,396,500$ 87% Professional Services 20,451,700 13,902,600 25,447,300 24% Support Costs 11,911,000 9,363,200 12,383,200 4% Projects and Operations 791,190,600 535,102,500 753,055,300 -5% Debt Service 76,675,600 72,205,600 76,654,400 0% Capital Outlay 10,837,000 9,347,500 5,288,000 -51% TOTAL Expenditures/Expenses 921,420,600$ 649,838,400$ 892,224,700$ -3% *Excludes transfers out Expenditures/Expenses by Function Comparison $- $100 $200 $300 $400 $500 $600 $700 $800 Salaries and Benefits Professional Services Support Costs Projects and Operations Debt Service Capital OutlayMillions *Excludes transfers out FY 2018/19 Revised Budget FY 2018/19 Projected FY 2019/20 Budget Next Steps Close public hearing and adopt budget June 12, 2019 Review the final budget draft, close the public hearing, and adopt the final budget Open public hearing May 8, 2019 Receive input on the proposed budget and open the public hearing Obtain Executive Committee approval May 8, 2019 One-time disbursement to pay off CalPERS net pension liability Continue monitoring revenues and costs Measure A administrative salaries and benefits Funding needs for projects and transit operations Sales Tax and TUMF revenue trends Timeliness of federal and state reimbursements AGENDA ITEM 9 Agenda Item 9 RIVERSIDE COUNTY TRANSPORTATION COMMISSION DATE: April 22, 2019 TO: Budget and Implementation Committee FROM Cheryl Donahue, Public Affairs Manager THROUGH: Aaron Hake, External Affairs Director SUBJECT: Quarterly Public Engagement Metrics Report, January – March 2019 STAFF RECOMMENDATION: This item is for the Committee to: 1) Receive and file the Quarterly Public Engagement Metrics Report for January – March 2019; and 2) Forward to the Commission for final action. BACKGROUND INFORMATION: Staff has been monitoring public engagement activities since January 2018 and has been preparing Quarterly Public Engagement Metrics Reports. An updated report is provided for the first quarter of 2019, which covers January-March. These quarterly reports are a data-driven approach to measuring progress toward public engagement goals, allow staff to assess the effectiveness of its efforts on an ongoing basis, and provide transparency into how the Commission is using its resources to engage and educate the public. This quarterly report includes three sets of data: 1) Metrics for RCTC’s overall public engagement activities, including website use and access; website top pages visited; email notifications; social media likes, engagement and reach; and public sentiment 2) Metrics for RCTC’s Interstate 15 Express Lanes Project public engagement activities, including email activity, website sessions, and social media. 3) New for this report are metrics for RCTC’s #RebootMyCommute public engagement program, which launched on March 6, 2019. The quarterly report will continue to evolve as staff refines its approaches to measuring public engagement activities and in response to any feedback from Commissioners. In addition, as additional significant capital projects begin, such as the State Route 60 Truck Lanes project, staff will provide project-related metrics. 34 Agenda Item 9 Report highlights for this quarter follow and are attached in a graphical format to this agenda item. It is important to note the metrics again reflect an increase in paid digital advertising during this first quarter. This increase in digital advertising expenditures has resulted in a significant jump in some of the metrics. RCTC Overall Public Engagement 1) Website a. For the quarter, there were 23,818 website sessions, a 16 percent increase from last quarter’s 20,614 sessions. There also were 13,774 unique users, an increase of 8 percent compared to the previous quarter’s 12,719 unique users. b. Close to one-third of the visitors accessed the website using a direct search (keying in rctc.org). Another 42 percent used organic searches, such as Google. Others used social media (19 percent), and website referrals (8 percent). This data is very similar to last quarter’s metrics. c. Website access via desktop versus mobile remained stable. The first quarter showed 54 percent accessing the website through a desktop computer and 46 percent using mobile devices. Last quarter, the ratio was 55 percent to 45 percent. d. The homepage continues to be the most frequently visited page within the website, followed by the “Meetings and Agendas” page. For the first time, the “Employment” page was among the top four pages, along with the “Santa Ana River Trail Project Phase One” page. 2) Social Media a. Facebook: At the end of the quarter, the Facebook page had 8,412 likes, a 2 percent increase over last quarter’s 8,265 likes. The page also had 43,322 forms of engagement, such as likes, comments and shares, a 228 percent increase from last quarter’s 13,227 forms of engagement. Facebook also had 5,338,593 impressions, which is the number of times that RCTC’s content was displayed in news feeds. This was a very large increase – 426 percent – from last quarter’s 1,014,855 impressions. This increase likely was a result of the significant increase in paid digital advertising this quarter. b. Twitter: RCTC’s Twitter page showed a 3 percent increase in followers, from 1,085 to 1,117. Engagement jumped 1,668 percent, from 301 forms of engagement to 5,321. Impressions also showed a large gain of 1,506 percent – from 48,761 to 783,246. Similar to Facebook, these gains probably are due to the growth in digital advertising. c. Instagram: The Instagram page grew 23 percent, from 302 to 372 followers. Engagement increased by 25 percent, from 372 forms of engagement to 465. Impressions grew 28 percent to a total of 8,417, compared to last quarter’s 6,594 impressions. d. Overall, public sentiment was positive, with the exception of comments received in early February in response to posts related to RCTC’s federal funding application 35 Agenda Item 9 for improvements to the 91 corridor. RCTC received positive comments about the Coachella special events train and the #RebootMyCommute campaign. 3) RCTC’s The Point: RCTC continues to produce content for its online blog, The Point, and distributes this information and other news via email to subscribers. RCTC’s subscriber rate grew 62 percent, from 1,777 to 2,884. The large increase in subscribers is due in part to the #RebootMyCommute campaign that started March 6. Thirty-five percent of subscribers opened The Point, and 7 percent clicked on links to learn more. Interstate 15 Express Lanes Construction Public Engagement 1) Emails: There were a total of 96 new email sign-ups for the quarter compared to last quarter’s 125 – a decrease of 30 percent, and 14 email inquiries received, the same as last quarter’s inquiries. 2) Website: The website experienced a drop in visits from 8,657 last quarter to 5,367 this quarter, a decrease of 38 percent. 3) Social Media: The project’s Facebook, Twitter and Instagram accounts all showed small gains. The Facebook page grew to 2,030 likes from 1,933 likes last quarter, a 5 percent increase. Twitter increased slightly from 219 followers to 220, a .5 percent increase. Instagram followers increased 9 percent from 351 to 384. #RebootMy Commute Public Engagement 1) Community Outreach: Two Tele-town Hall meetings were held March 19 and 20. These attracted 7,539 participants, 52 phone discussions, and nine voice messages. Staff also took part in three community events and engaged with 160 residents at these events. 2) News Media: Ten news stories featured the “Reboot” campaign. Advertisements were placed in The Press-Enterprise and The Desert Sun, with a combined print ad circulation of 461,702 and digital ad circulation of 156,250. The video ad was aired 16 times on television station KESQ. 3) Website: The RebootMyCommute.org website had 11,666 sessions with 10,322 unique visitors. A total of 308 comment forms have been received to date. 4) Messages: The campaign generated a large number of new subscribers to RCTC’s The Point newsletter – 1,090 new subscribers via email and 74 via text message. There were 5,205 brochure copies distributed to city halls, community centers, libraries and senior centers across Riverside County. 5) Social Media Advertising: A number of #RebootMyCommute social media ads ran since the campaign launched on March 6. On Facebook, 43,961 people viewed the videos in their entirety, 17,493 clicked through to learn more, there were 1,311 direct engagements with viewers, 2,175,674 impressions, and a reach of 301,257. On Twitter, full video views totaled 7,613, click-throughs totaled 1,989, direct engagements were 54, and impressions totaled 368,225. On Instagram, 15,652 people watched the videos, 1,955 clicked to learn more, there were 1,193 direct engagements, 1,567,740 impressions, and a reach of 212,833. The “Reboot” videos posted to YouTube also generated considerable 36 Agenda Item 9 interest with 575,087 full views, 8,341 clicks, and 2,288,256 impressions. Online sentiment related to the social media ads was strongly positive starting with the campaign launch on March 6 and building through mid-March. A second round of social media advertising launched on March 21, generating additional positive sentiment. Attachments: 1) RCTC Overall Public Engagement Metrics 2) I-15 Express Lanes Public Engagement Metrics 3) #RebootMyCommute Public Engagement Metrics 37 Top Pages Visited 2 3 4 Desktop vs Mobile Users Top Channels 54%46%Desktop Mobile Facebook Twitter Instagram -1 - 0.5 0 0.5 1 1.5 2 1/1 1/15 1/29 2/12 2/26 3/263/12 Overall Social Media Sentiment Eblasts Web Public Engagement Metrics: Q1 January – March 2019 Social Media Direct (30.7%) — 4,426 DifferencesPaid advertising increased in Q1. Subscribers2,884 AverageOpen 31% AverageClick7% 23,818Number of Sessions +16%13,774Number ofUnique Users +8% Impressions5,338,593 Page Likes8,412 Engagement43,322 Impressions783,246 Followers1,117 Engagement5,321 Impressions8,417 Followers372 Engagement465 +1506% +3% +1668% +28% +23% +25% +426% +2% +228% Meetings and Agendas Employment Santa Ana River Trail Project Phase One Homepage is #1 most visited page Organic (41.9%) — 6,034 Social (19.1%) — 2,759 Referral (8.3%) — 1,189 +62% 2/7 (-) Federal funding application for 91 highway improvements2/25 (+) Support for Coachella special events train3/6 (+) Response to #RebootMyCommute campaign ATTACHMENT 1 38 15 Express Lanes ProjectOutreach Metrics Jan 2019 – March 2019 Facebook Page Likes Instagram Followers (Account Opened 02/05/18) Twitter Followers (Account Opened 02/05/18)Oct – Dec 2016Jan – Mar 2017Apr – Jun 2017Jul – Sep 2017Oct – Dec 2017Jan – Mar 2018Jul – Sep 2018Apr – Jun 2018Oct – Dec 2018Jan – March 2019Number of Likes/FollowsFacebook Page Likes Instagram Followers (Account Opened 02/05/18) Twitter Followers (Account Opened 02/05/18) 21 127 195 932 979 1,297 1,477 1,665 1,933 2,030 0 500 1000 1500 2000 2500 52 148 181 293 176 208 351 219 384 220 845 2,790 2,145 3,033 2,243 3,924 5,460 8,657 7,744 5,367 Oct – Dec 2016Jan – Mar 2017Apr – Jun 2017Jul – Sep 2017Oct – Dec 2017Jan – Mar 2018Jul – Sep 2018Apr – Jun 2018Oct – Dec 2018Jan – March 20190 2000 4000 6000 8000 10000 Website Visits7 13 12 8 8 14 15 27 1414 Oct – Dec 2016Jan – Mar 2017Apr – Jun 2017Jul – Sep 2017Oct – Dec 2017Jan – Mar 2018Jul – Sep 2018Apr – Jun 2018Oct – Dec 2018Jan – March 2019Number of Emails0 5 10 15 20 25 30 Number of Sign-Ups45 69 589 537 161 305 209 386 96125 0 100 200 300 400 500 600 Oct – Dec 2016Jan – Mar 2017Apr – Jun 2017Jul – Sep 2017Oct – Dec 2017Jan – Mar 2018Jul – Sep 2018Apr – Jun 2018Oct – Dec 2018Jan – March 2019Email List Sign-Ups Website Visits Emails Received Social Media Likes/Follows ATTACHMENT 2 39 Media Community Outreach Online SentimentMessages Social Media Ads Website #RebootMyCommute Metrics March 2019 Facebook Twitter YouTube TrendVu Video Views (100%)7,613 Clicks1,989 Direct Engagements54 Impressions368,225 Video Views (100%)575,087 Clicks8,341 Impressions2,288,256 Video Views (100%)43,961 Clicks17,493 Direct Engagements1,311 Impressions2,175,674 Reach301,257 Community Booths Tele-town Halls 11,666Number of Sessions 10,322Number of Unique Users 308FormSubmissions 7,539Participants 52Comments 9Voice Messages 500Event Attendance 160People Engaged Publications Television 10Media Stories 461,702 Print Ad Circulation 156,250 Digital Ad Circulation 16 Video Ad Airs Email 1,090Subscribers Text74Subscribers Print Piece5,205Delivered 3/6 (+) #RebootMyCommute campaign launches. 3/17 (+) Round 1 ends. Ad data is used to optimize targeting and messaging. 3/21 (+) Round 2 #RebootMyCommute campaign ads launch. Instagram Video Views (100%)15,652 Clicks1,955 Direct Engagements1,193 Impressions1,567,740 Reach212,833 ATTACHMENT 3 40 PUBLIC ENGAGEMENT METRICS Quarterly Report: January-March 2019 Budget & Implementation Committee April 22, 2019 Cheryl Donahue, Public Affairs Manager 1 Importance of Metrics 2 “If you can’t measure it, you can’t improve it.” –Peter Drucker •Data-driven approach to public engagement •Began tracking metrics in January 2018 •Make adjustments to strategies, goals •Analyze strengths, weaknesses •Compare over time •Boost transparency Three Sets of Data 3 Overall public engagement activities I-15 Express Lanes Project #RebootMyCommute program, March only 1 2 3 Overall Public Engagement 4 1 5 Reflects changes from previous quarter, Oct-Dec 2018 Social Media 6 Facebook Sentiment 7 Website 8 The Point E-Newsletter I-15 Express Lanes Project 9 2 10 Social Media 11 New Email Registrants 12 Email Inquiries 13 Website Visits #RebootMyCommute Program (March 1-31, 2019) 14 3 15 Social Media Advertising 16 Facebook Sentiment 17 Media Mentions 18 Community Outreach 19 Website QUESTIONS 20 AGENDA ITEM 10 Agenda Item 10 RIVERSIDE COUNTY TRANSPORTATION COMMISSION DATE: April 22, 2019 TO: Budget and Implementation Committee FROM: Jillian Guizado, Legislative Affairs Manager THROUGH: Aaron Hake, External Affairs Director SUBJECT: State and Federal Legislative Update STAFF RECOMMENDATION: This item is for the Committee to: 1) Adopt the following bill position: a) AB 456 (Chiu, Bonta, Low) – Oppose; 2) Receive and file an update on state and federal legislation; and 3) Forward to the Commission for final action. DISCUSSION: State Update In September 2016, the Commission adopted an oppose position on AB 626 by Assemblymembers Chiu and Low. AB 626 (2016) was a bill that added a significant degree of complexity to the Public Contract Code relating to claims by contractors and subcontractors on public works contracts. The bill established a claims resolution process for public works contracts entered into on or after January 1, 2017, a process that was supplemental to existing claims processes spelled out in state law. As a result, public agencies have specific deadlines that need to be met to meet when reviewing and formally responding to claims submitted by contractors. This has brought about the potential for public agencies to be subject to additional claims due to the law prescribing a process that allows subcontractors that lack legal standing to bring a claim directly to an agency through the prime contractor. Untimely payment of claims are subjected to a 7 percent interest penalty. AB 626 (2016) included a sunset date of January 1, 2020. DISCUSSION: AB 456 (Chiu, Bonta, Low) – Staff Recommended Position: Oppose This legislative session, the original authors of AB 626 (2016) have introduced AB 456. This bill would remove the sunset date of January 1, 2020, proposing to make the statute permanent. While the Commission has not yet seen an uptick in claims as it expected after the passage of AB 626 (2016), engaging on this bill is likely the last opportunity for the Commission to influence 41 Agenda Item 10 this policy matter, which is consistent with both the Commission’s past actions on legislation that add costs, delays, risk, and complexity to transportation projects and the Commission’s adopted 2019 State and Federal Legislative Platform (Platform). The Commission’s Platform includes a principle to protect our authority and revenue by opposing legislation that amends procurement law in a manner that increases the Commission’s exposure to litigation, costs, decreased private sector competition, conflicts of interest, or deviation from best practices. Federal Update The United States Department of Transportation is expected to release a notice of funding opportunity for the Better Utilizing Investments to Leverage Development discretionary (competitive) grant program in mid-April. Staff anticipates having additional information to report on this opportunity at its April 22, 2019 Budget and Implementation Committee Meeting. Attachment: Legislative Matrix – May 2019 42 RIVERSIDE COUNTY TRANSPORTATION COMMISSION - POSITIONS ON STATE AND FEDERAL LEGISLATION – MAY 2019 Legislation/ Author Description Bill Status Position Date of Board Adoption AB 252 (Daly, Frazier) Removes the sunset date from the NEPA Reciprocity program. Passed Transportation Committee; referred to Appropriations Committee and placed on suspense file. (March 20, 2019) SUPPORT 3/13/19 AB 1402 (Petrie-Norris) Makes substantive changes to the Active Transportation Program administered by the State, allocating 75% of funds to be distributed by large MPOs. Referred to Committee on Transportation. (March 27, 2019) SUPPORT 4/1/19 SB 152 (Beall) Makes substantive changes to the Active Transportation Program administered by the State, allocating 75% of funds to be distributed by large MPOs. Passed Senate Transportation Committee, referred to Senate Appropriations. (April 10, 2019) SUPPORT 4/1/19 AB 626 (Quirk-Silva) Seeks to dictate that professionals who provide professional services on one phase of a project be deemed not to have a conflict of interest in subsequent project phases, disregarding the Commission’s adopted Procurement Policy. Passed Assembly Elections and Redistricting Committee, referred to Assembly Appropriations Committee. (April 10, 2019) OPPOSE UNLESS AMENDED 4/10/19 43