HomeMy Public PortalAbout04 April 26, 2021 Budget & Implementation
MEETING AGENDA
Budget and Implementation Committee
Time: 9:30 a.m.
Date: April 26, 2021
Pursuant to Governor Newsom’s Executive Order N-29-20, (March 18, 2020), the meeting will
only be conducted via video conferencing and by telephone.
COMMITTEE MEMBERS
Lloyd White, Chair / David Fenn, City of Beaumont
Raymond Gregory, Vice Chair / Mark Carnevale, City of
Cathedral City
David Happe / Alberto Sanchez, City of Banning
Linda Molina / Wendy Hewitt, City of Calimesa
Jeremy Smith / Larry Greene, City of Canyon Lake
Steven Hernandez / Denise Delgado, City of Coachella
Scott Matas / Russell Betts, City of Desert Hot Springs
Bob Magee / Natasha Johnson, City of Lake Elsinore
Jan Harnik / Kathleen Kelly, City of Palm Desert
Lisa Middleton / Dennis Woods, City of Palm Springs
Chuck Conder / Erin Edwards, City of Riverside
Alonso Ledezma / Crystal Ruiz, City of San Jacinto
Ben J. Benoit / Joseph Morabito, City of Wildomar
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 26, 2021
Pursuant to Governor Newsom’s Executive Order N-29-20, (March 18, 2020), the Budget and
Implementation Committee meeting will only be conducted via video conferencing and by
telephone. Please follow the instructions below to join the meeting remotely.
INSTRUCTIONS FOR ELECTRONIC PARTICIPATION
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For members of the public wishing to submit comment in connection with the Budget and
Implementation Committee Meeting please email written comments to the Clerk of the Board at
lmobley@rctc.org prior to April 25, 2021 at 5:00 p.m. and your comments will be made part of the
official record of the proceedings. Members of the public may also make public comments through
their telephone or Zoom connection when recognized by the Chair.
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 on the Commission’s website,
www.rctc.org.
In compliance with the Americans with Disabilities Act, Government Code Section 54954.2, Executive Order
N-29-20, 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 Committee 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
Budget and Implementation Committee
April 26, 2021
Page 2
3. PLEDGE OF ALLEGIANCE
4. PUBLIC COMMENTS – 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. Each individual speaker is limited to
speak three (3) continuous minutes or less.
5. 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.)
6. 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.
6A. APPROVAL OF MINUTES – MARCH 22, 2021
Page 1
6B. SINGLE SIGNATURE AUTHORITY REPORT
Page 5
Overview
This item is for the Committee to:
1) Receive and file the Single Signature Authority report for the third quarter
ended March 31, 2021; and
2) Forward to the Commission for final action.
6C. QUARTERLY REPORTING OF CONTRACT CHANGE ORDER FOR CONSTRUCTION
CONTRACTS
Page 7
Overview
This item is for the Committee to:
1) Receive and file the Quarterly Report of Contract Change Orders for
Construction Contracts for the past three months ending March 31, 2021; and
2) Forward to the Commission for final action.
Budget and Implementation Committee
April 26, 2021
Page 3
7. PROPOSED BUDGET FOR FISCAL YEAR 2021/22
Page 9
Overview
This item is for the Committee to:
1) Discuss, review, and provide guidance on the proposed Fiscal Year 2021/22 Budget;
2) Open the public hearing in order to receive input and comments on the proposed
FY 2021/22 Budget on May 12 and June 9, 2021, and thereafter close the public
hearing;
3) Approve an increase in the FY 2020/21 budget for revenues and expenditures for
$250,000 related to regional conservation right of way consultant costs; and
4) Forward to the Commission for final action.
8. AGREEMENTS FOR AUDIT AND ATTESTATION SERVICES
Page 35
Overview
This item is for the Committee to:
1) Award the following agreements to provide audit and attestation services for the
Western Riverside County Measure A recipients and Transportation Development Act
(TDA) claimants of the Commission and the member agencies of the Western
Riverside County Regional Conservation Authority (RCA) for a three-year term, with
three one-year options to extend the agreements in the total aggregate amount of
$1,524,661, plus a contingency amount of $75,339, for a total aggregate amount not
to exceed $1,600,000:
a) Agreement No. 21-19-034-00 to BCA Watson Rice LLP;
b) Agreement No. 21-19-035-00 to Brown Armstrong Accountancy Corporation
(Brown Armstrong);
c) Agreement No. 21-19-036-00 to Conrad LLP; and
d) Agreement No. 21-19-037-00 to Eide Bailly LLP;
2) Award the following agreements to provide audit and attestation services for the
Eastern Riverside County Measure A Recipients and Transportation Development Act
Claimants of the Commission for a three-year term, with three one-year options to
extend the agreements in the total aggregate amount of $413,160, plus a
contingency amount of $19,840, for a total aggregate amount not to exceed
$433,000:
a) Agreement No. 21-19-056-00 to Brown Armstrong; and
b) Agreement No. 21-19-057-00 to Conrad LLP;
3) Authorize the Chair or Executive Director, pursuant to legal counsel review, to finalize
and execute the agreements, including options years, on behalf of the Commission;
4) Authorize the Executive Director or designee to approve contingency work up to the
total not to exceed amount as required for these audit and attestation services; and
5) Forward to the Commission for final action.
Budget and Implementation Committee
April 26, 2021
Page 4
9. 2021 MID-CYCLE STATE TRANSPORTATION IMPROVEMENT PROGRAM FUNDING
DISTRIBUTION AND PROGRAMMING
Page 242
Overview
This item is for the Committee to:
1) Approve the 2021 Mid-Cycle State Transportation Improvement Program (STIP)
funding distribution among the three geographic areas in Riverside County per the
adopted STIP Intracounty Memorandum of Understanding (MOU);
2) Approve programming $10,069,068 of 2021 Mid-Cycle STIP Western Riverside
County, Coachella Valley, and Palo Verde Valley funding capacity to the
71/91 Connector project, and submit the 2021 Mid-Cycle STIP to the California
Transportation Commission (CTC);
3) Include programming Planning, Programming, and Monitoring (PPM) funds
(2 percent of STIP programming capacity) in the amount of $205,491 in
Fiscal Year 2022/23;
4) Approve swapping the Coachella Valley STIP share with Surface Transportation Block
Grant (STBG) funds in the amount of $2,159,815;
5) Approve Agreement No. 07-71-028-04, Amendment No. 4 to Agreement
No. 07-71-028-00, with the city of Blythe (Blythe) to trade $43,297 of Palo Verde
Valley STIP funds with Measure A Western Riverside County Highway funds to
facilitate delivery of local arterial projects;
6) Authorize the Executive Director, pursuant to legal counsel review, to execute
Agreement No. 07-71-028-04 on behalf of the Commission upon CTC adoption of the
2021 Mid-Cycle STIP; and
7) Forward to the Commission for final action.
10. STATE AND FEDERAL LEGISLATIVE UPDATE
Page 246
Overview
This item is for the Committee to:
1) Receive and file an update on state and federal legislation;
2) Adopt the following bill positions:
a) SB 261 (Allen) – Oppose
b) AB 840 (Holden) – Oppose; and
3) Forward to the Commission for final action.
Budget and Implementation Committee
April 26, 2021
Page 5
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., May 24, 2021, via Zoom.
AGENDA ITEM 6A
MINUTES
RIVERSIDE COUNTY TRANSPORTATION COMMISSION
BUDGET AND IMPLEMENTATION COMMITTEE
Monday, March 22, 2021
MINUTES
1. CALL TO ORDER
The meeting of the Budget and Implementation Committee was called to order by
Chair Lloyd White at 9:31 a.m. via Zoom Meeting ID: 844 6885 6317, pursuant to Governor
Newsom’s Executive Order N-29-20.
2. ROLL CALL
Members/Alternates Present Members Absent
Chuck Conder Ben J. Benoit
Raymond Gregory David Happe
Jan Harnik Steven Hernandez
Bob Magee Alonso Ledezma
Scott Matas Chuck Washington
Lisa Middleton
Linda Molina
Jeremy Smith
Karen Spiegel
Lloyd White
3. PLEDGE OF ALLEGIANCE
Commissioner Linda Molina led the Budget and Implementation Committee in a flag
salute.
4. PUBLIC COMMENTS
There were no requests to speak from the public.
5. ADDITIONS / REVISIONS
There were no additions or revisions to the agenda.
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RCTC Budget and Implementation Committee Minutes
March 22, 2021
Page 2
6. 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 (Gregory/Spiegel) to approve the following Consent Calendar item(s):
Abstain: Harnik on Agenda Item 6A.
6A. APPROVAL OF MINUTES – FEBRUARY 22, 2021
6B. QUARTERLY FINANCIAL STATEMENTS
1) Receive and file the Quarterly Financial Statements for the six months
ended December 31, 2020; and
2) Forward to the Commission for final action.
7. STATE AND FEDERAL LEGISLATIVE UPDATE
David Knudsen, Legislative Affairs Manager, provided an update for the state and federal
legislative activities.
Anne Mayer, Executive Director, expressed appreciation that Commissioner Joe
Tavaglione was reappointed to the California Transportation Commission (CTC) as he has
long been a strong supporter of the Inland Empire and there was some concern that the
seat would go to someone else out of the Inland Empire. Anne Mayer stated with respect
to the earmarks, the earmarks are relatively limited in terms of dollar amounts and they
will be pulling from the Commission approved list of priority projects. This is the first time
RCTC has had an earmark opportunity in quite a while so they will make sure at least two
projects are submitted to each of their congressional and delegation members.
M/S/C (Middleton/Gregory) to:
1) Receive and file an update on state and federal legislation; and
2) Forward to the Commission for final action.
8. ACTIVE TRANSPORTATION PROGRAM CYCLE 5 – RIVERSIDE COUNTY PROJECT
RECOMMENDATIONS FOR METROPOLITAN PLANNING ORGANIZATION REGIONAL
PROGRAM
Jenny Chan, Planning and Programming Manager, presented the Active Transportation
Program (ATP) Cycle 5 Metropolitan Planning Organization (MPO) Regional Program
recommendations, highlighting the following areas:
• ATP program overview
2
RCTC Budget and Implementation Committee Minutes
March 22, 2021
Page 3
• Distribution of Funds – Cycle 5 total of $445.56 million for FY 21/22– 24/25
• ATP Cycle 5 Statewide = $220.78 million – The CTC will award 2 Riverside County
Projects. Adoption March 2021
• ATP Cycle 5 MPO = $92.572 million – Riverside County Share = $11.305 million;
SCAG MPO Guidelines allows additional 20 points; Commission approved 20-point
distribution methodology
• Riverside County MPO Share Project Recommendation for Cycle 5
• A map of the ATP funded projects for Cycles 1 - 5
Vice Chair Raymond Gregory expressed appreciation to all that participated in this process.
He stated for the city of Cathedral City’s projects for their city connectors will increase both
the ability to safely bike and walk particularly in downtown and along SR-111, as there are
a lot of gaps and this will go a long way towards closing that. Vice Chair Gregory expressed
gratitude to the Southern California Association of Governments representatives, RCTC
staff, the Commissioners, the Coachella Valley Association of Governments, and city staff
for all their hard work in making sure they can continue to make these improvements in
our communities.
M/S/C (Molina/Gregory) to:
1) Approve the Riverside County Active Transportation Program (ATP)
projects for inclusion in the Metropolitan Planning Organization (MPO)
ATP Regional Program Cycle 5 consisting of the highest scoring projects
in the total amount of $11,305,000;
2) Authorize staff to adjust the ATP award request to include Riverside
County – Public Health’s Safe Routes for All – Hemet Project to maximize
available funds in Riverside County;
3) Submit the list of recommended and contingency 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 2021;
4) Authorize staff to request state-only ATP funds for all projects, which all
have cleared and completed state environmental clearance;
5) Submit the MPO ATP regional projects to SCAG for programming in the
Federal Transportation Improvement Program (FTIP);
6) Direct staff to coordinate with the MPO ATP Regional Program project
sponsors regarding timely funding allocations, obligations, and project
delivery;
7) Prioritize Coachella Valley Association of Governments (CVAG)’s
Coachella Valley Arts and Music Line project for any future supplemental
ATP Cycle 5 funding; and
8) Forward to the Commission for final action.
3
RCTC Budget and Implementation Committee Minutes
March 22, 2021
Page 4
9. ITEM(S) PULLED FROM CONSENT CALENDAR AGENDA
There were no items pulled from the consent calendar.
10. COMMISSIONERS / EXECUTIVE DIRECTOR REPORT
10A. Chair Harnik announced the California Association of Councils of Governments
(CALCOG) Regional Conference is going on right now and they are discussing the
same issues that RCTC deals with. It is also being held on March 23 at CALCOG.
11. ADJOURNMENT
There being no further business for consideration by the Budget and Implementation
Committee, the meeting was adjourned at 9:54 a.m.
Respectfully submitted,
Lisa Mobley
Clerk of the Board
4
AGENDA ITEM 6B
Agenda Item 6B
RIVERSIDE COUNTY TRANSPORTATION COMMISSION
DATE: April 26, 2021
TO: Budget and Implementation Committee
FROM: Alicia Johnson, Senior Procurement Analyst
Jose Mendoza, 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, 2021; 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 March 2021. The Executive Director is authorized to sign
services contracts that are less than $250,000 individually and in an aggregate amount not to
exceed $2 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, 2021, under the single signature authority granted to the Executive Director. The
unused capacity of single signature authority for services at March 31, 2021 is
$1,843,975.
Attachment: Single Signature Authority Report as of March 31, 2021
5
CONTRACT #
CONSULTANT DESCRIPTION OF SERVICES ORIGINAL CONTRACT
AMOUNT PAID AMOUNT REMAINING
CONTRACT AMOUNT
AMOUNT AVAILABLE July 1, 2020
$2,000,000.00
18-33-123-00 Los Angeles Engineering La Sierra Station Expansion Project 3,497.49 3,497.49 0.00
PO 2806 Dispensing Technology Corp.Bituminous Applicator for Interstate 15 Express Lanes 38,045.74 38,045.74 0.00
21-31-002-00 California Highway Patrol Construction Zone Enhancement Program (COZEEP) for Interstate 215
Pachappa Project 49,982.00 1,484.00 48,498.00
21-31-023-00 HGN Corona Partners Parking agreement for SR-91 Corridor Operations Project 13,500.00 4,500.00 9,000.00
21-19-041-00 Eadie + Payne Accounting assistance and documenting accounting policies 51,000.00 0.00 51,000.00
AMOUNT USED 156,025.23
156,025.23
$1,843,974.77
None N/A $- $- $-
Jose Mendoza Theresia Trevino
Prepared by Reviewed by
AMOUNT USED
SINGLE SIGNATURE AUTHORITY
AS OF March 31, 2021
Note: Shaded area represents new contracts listed in the third quarter.
AMOUNT REMAINING through March 31, 2021
Agreements that fall under Public Utilities Code 130323 (C)
V:\2021\05 May\B&I\6B.A1.AJ.SingleSignQ3
6
AGENDA ITEM 6C
Agenda Item 6C
RIVERSIDE COUNTY TRANSPORTATION COMMISSION
DATE: April 26, 2021
TO: Budget and Implementation Committee
FROM: Marlin Feenstra, Project Delivery Director
THROUGH: Anne Mayer, Executive Director
SUBJECT: Quarterly Reporting of Contract Change Order for Construction Contracts
STAFF RECOMMENDATION:
This item is for the Committee to:
1) Receive and file the Quarterly Report of Contract Change Orders for Construction
Contracts for the past three months ending March 31, 2021; and
2) Forward to the Commission for final action.
BACKGROUND INFORMATION:
During the past quarter, January to March 2021, the Commission has had the following projects
under construction:
1. Mid County Parkway Placentia project
2. I-15 Railroad Canyon Interchange project
3. SR-91 Pachappa Underpass project
4. SR-60 Truck Lanes project
5. Downtown Riverside Station Layover Facility project
6. I-15 Express Lanes project
7. SR-91 Corridor Operations project
In addition to the projects under construction, the Commission also had on-going Toll operations
contracts.
1. I-15 Express Lanes project – Toll Services Provider (Kapsch)
2. I-15 / SR-91 Express Lanes Connector – Toll Services Provider (Kapsch)
DISCUSSION:
At the direction of the Executive Committee at its March 2021 meeting, a report will be filed each
quarter listing the construction contract change orders that were issued in the previous quarter.
7
Agenda Item 6C
The following table summarizes the Contract Changes Orders that occurred in the last quarter (3rd
quarter of FY 2020/2021).
8
AGENDA ITEM 7
Agenda Item 7
RIVERSIDE COUNTY TRANSPORTATION COMMISSION
DATE: April 26, 2021
TO: Budget and Implementation Committee
FROM: Michele Cisneros, Deputy Director of Finance
Theresia Trevino, Chief Financial Officer
THROUGH: Anne Mayer, Executive Director
SUBJECT: Proposed Budget for Fiscal Year 2021/22
STAFF RECOMMENDATION:
This item is for the Committee to:
1) Discuss, review, and provide guidance on the proposed Fiscal Year 2021/22 Budget;
2) Open the public hearing in order to receive input and comments on the proposed
FY 2021/22 Budget on May 12 and June 9, 2021, and thereafter close the public hearing;
3) Approve an increase in the FY 2020/21 budget for revenues and expenditures for
$250,000 related to regional conservation right of way consultant costs; and
4) 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 2021/22 Budget. The policy goals and objectives approved by the Commission
on March 10 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.
At the meeting, staff will present highlights of significant items included in the budget and seeks
review of and input on the proposed FY 2021/22 Budget. Additionally, staff recommends opening
of the public hearing on May 12. As a result of input received from the public and the Commission
and any final staff revisions to budget amounts, 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 9 Commission meeting. Should there be any revisions to budget amounts after the
May 12 Commission meeting, staff will provide a detailed reconciliation of such revisions.
9
Agenda Item 7
DISCUSSION:
The Commission’s budget is primarily project-driven, although the express lanes operations are
service-driven. 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 2021/22 Budget anticipates that
total uses will exceed total sources by approximately $143 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, Tables 18-20 provide a summary of budgeted sources and
uses from different perspectives (comparative, operating and capital, and fund).
Since the Commission is project-driven, personnel costs represents 1 percent of budgeted
expenditures. Budgeted personnel costs reflect a 4 percent pool for performance merit-based
salary increases and annual salary range adjustments.
With this budget, the Commission will continue to move forward current capital projects to
construction, thereby providing a stimulus for the local economy. Significant capital projects
include:
• Construction on the 60 Truck Lanes in the Badlands, 71/91 Connector in Corona,
91 Corridor Operations Project, Mid County Parkway’s (MCP) first project at
I-215/Placentia Avenue interchange in Perris, and Pachappa Underpass on SR-91 in
downtown Riverside;
• Design-build activities on the 15/91 Express Lanes Connector in Corona and completion
of the I-15 Express Lanes Project in northwestern Riverside County; and
• Preliminary engineering, final design, and/or right of way acquisition on the I-15 Express
Lanes Project-Southern Extension, I-15 Express Lanes Corridor Operations Project,
71/91 Connector, and MCP’s second construction project.
Other major capital project expenditures include pass-through funding for Measure A local
streets and roads, the other SB 132 projects in northwestern Riverside County, Western County
TUMF and Measure A regional arterial projects, and several commuter rail station upgrades and
improvements. Table 21 in the executive summary presents a summary of highway, regional
arterial, rail, and regional conservation program projects.
A public hearing to allow for public comment on the proposed budget is required prior to the
adoption of the proposed budget, including the proposed salary schedule. Accordingly, staff
recommends the Commission opens the public hearing on May 12, continues the public hearing
to June 9 followed by adoption of the proposed FY 2021/22 Budget. In accordance with the
Commission’s fiscal policies, the budget must be adopted no later than June 15 of each year.
A summary of the proposed FY 2021/22 Budget is as follows:
10
Agenda Item 7
FY 2021/22 Budget
Revenues and other financing sources:
Sales taxes-Measure A and Local Transportation Funds $ 295,000,000
Reimbursements (federal, state, and other) 338,753,900
Transportation Uniform Mitigation Funds, including reimbursements 11,000,000
State Transit Assistance 23,862,200
Tolls, penalties, and fees 65,123,700
Other revenues 657,300
Interest on investments 860,000
Debt proceeds 674,497,000
Transfers in 196,240,000
Total revenues and other financing sources 1,605,994,100
Expenditures and other financing uses:
Personnel salaries and fringe benefits 15,005,000
Professional services 19,265,800
Support services 16,957,000
Projects and operations 765,682,900
Capital outlay 6,359,700
Debt service (principal, interest, and payment to escrow agent) 729,093,600
Transfers out 196,240,000
Total expenditures and other financing uses 1,748,604,000
Excess (deficiency) of revenues and other financing sources over
(under) expenditures and other financing uses
(142,609,900)
Beginning fund balance (projected) 1,000,974,600
Ending fund balance (projected) $ 858,364,700
The proposed FY 2021/22 also assumes that the refinancing of the 91 Express Lanes toll revenue
bonds and Transportation Infrastructure Finance and Innovation Act loan, originally approved at
the March 2020 Commission meeting, will be completed. Amounts related to the refinancing are
included in debt proceeds and debt service expenditures. Staff anticipates bringing an update
on the refinancing and revised legal documents for Commission approval in the first half of FY
2021/22.
FY 2020/21 Budget Adjustment
In connection with the compilation of the FY 2021/22 Budget, staff determined that projected
FY 2020/21 revenues and expenditures for the regional conservation program exceeded the
budget amounts approved by the Commission in November 2020 in connection with approval of
the Implementation and Management Services Agreement between the Commission and the
Western Riverside County Regional Conservation Authority (RCA). Subsequent to the effective
11
Agenda Item 7
date of the agreement, the Commission’s right of way staff immediately assumed responsibility
for the RCA’s habitat acquisition program and began incurring costs through utilization of
Commission right of way consultant contracts. Accordingly, staff recommends that the
Commission approve an adjustment to increase the FY 2020/21 budget for reimbursement
revenues and expenditures for $250,000 related to regional conservation right of way consultant
costs.
FISCAL IMPACT:
Financial Information
In Fiscal Year Budget: No Year: FY 2020/21 Amount: $250,000
Source of Funds: RCA reimbursements Budget Adjustment: Yes
GL/Project Accounting No.: r22001 81403 00000 0000 750 68 81402 $250,000 expenditures
r22001 000 41608 750 68 41204 $250,000 revenues
Fiscal Procedures Approved: Date: 04/14/2021
Attachment: Draft Proposed FY 2021/22 Budget Executive Summary
12
Executive Summary
Introduction
The budget for FY 2021/22 is presented to the Board of Commissioners (Board) and the citizens of
Riverside County. The budget outlines the projects and programs 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 and programs. This document serves as the
Commission’s monetary guideline for the fiscal year. To provide the reader a better understanding of
the projects and programs, staff included descriptive information regarding each department and
major programs and projects.
In early March 2020, the federal government as well as the California Governor issued emergency
declarations related to the COVID-19 pandemic. Further, on March 19, 2020, the Governor issued an
executive stay at home order to protect the health and well-being of all Californians and to establish
consistency across the State to slow the spread of COVID-19. The County of Riverside also issued a
directive to county residents supporting the Governor’s executive order. Over the past year, the
restrictions have been modified in response to the changing nature of the pandemic. The end of the
COVID-19 pandemic appears to be in sight with vaccine distributions becoming widely available, more
Californians returning to work or leisure activities with modified stay at home orders, and financial relief
to families and businesses most impacted by the pandemic.
COVID-19 and the related government health orders have negatively impacted the local, regional,
state, and federal economies; the magnitude and duration of these impacts remain uncertain. This
budget is presented based on the best available economic information. The Board and staff will
continuously monitor, assess, and adjust the budgeted revenue and expenditures as necessary
throughout the crisis and duration of economic recovery.
Policy Goals and Objectives
As approved at its March 10, 2021 meeting, the Commission is driven by four core mission statements
and underlying goals 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 its residents.
Mobility RCTC provides access, equity, and choice in transportation; RCTC is a mobility
partner.
Equity
RCTC supports transportation services and projects that equitably benefit all
residents, including those in rural, low income, and disadvantaged
communities.
Access
RCTC projects and programs are the connection to employment, housing,
schools, community institutions, parks, medical facilities, and shopping in the
region.
Goods Movement
RCTC facilitates the funding and delivery of projects that mitigate the impact
of increased goods movement flow through Riverside County and advocates
for a reasonable balance between the need to create jobs and to protect
public health.
13
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.
Efficiency RCTC operates in an efficient and cost-effective manner.
Innovation Program and project delivery innovations drive results, savings, and greater
economic opportunities for Riverside County residents.
Information RCTC operations are transparent and easily accessible; customers get prompt,
reliable, 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 fosters workforce development by improving transportation
access to major employment and education centers.
Population Growth
Since 1976, RCTC has been responsible for connecting the County’s economy
as the County’s population has quadrupled from 550,000 to over 2.4 million
today. RCTC is sensitive to each geographic area’s unique needs.
Economic Impact
RCTC has invested over $4.3 billion in the County’s economy thanks to Measure
A and toll revenues, which has a multiplier impact in terms of jobs and
economic opportunity throughout Riverside County.
RESPONSIBLE PARTNER
RCTC partners with local, regional, and state governments to deliver road and transit projects.
Streets and Roads RCTC has invested over $1 billion in local priorities for maintaining streets and
roads and fixing potholes.
Transit
RCTC partners with other transit operators to provide residents mobility
choices, flexibility, intercity and intercounty connectivity, and access—
especially during a post-pandemic recovery.
Active Transportation
Facilities
RCTC continually improves its stations for better bicycle and pedestrian access
and partners 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 leverage Measure A dollars
and 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 mission statements and goals to prepare this budget and develop the following
short-term objectives to guide further the development of the FY 2021/22 budget.
Capital Project Development and Delivery
Continue preliminary engineering, design, right of way acquisition, and/or construction of projects
included in the Western County Highway Delivery Plan.
Continue operations planning and design of projects led by other agencies.
As lead agency for partner agency projects, continue construction of the I-15/Railroad Canyon
Interchange project and commence preliminary engineering of the I-10/Highland Springs Avenue
Interchange project.
Consider opportunities to implement technology-based strategies, or Smart Freeway projects, to
manage traffic, reduce congestion and pollution, increase safety, and improve the quality of
commutes.
14
�� M a i n t a i n a n d e n h a n c e c o m m u n i c a t i o n a n d c o l l a b o r a t i o n w i t h t h e C a l i f o r n i a D e p a r t m e n t o f
T r a n s p o r t a t i o n ( C a l t r a n s ) t o i m p r o v e t h e C o m m i s s i o n s a b i l i t y t o d e l i v e r c r i t i c a l p r o j e c t s .
�� C o l l a b o r a t e w i t h l o c a l j u r i s d i c t i o n s t o i m p l e m e n t T r a n s p o r t a t i o n U n i f o r m M i t i g a t i o n F e e ( T U M F )
r e g i o n a l a r t e r i a l p r o g r a m p r o j e c t s a n d f a c i l i t a t e t h e d e l i v e r y o f e l i g i b l e a r t e r i a l i m p r o v e m e n t s i n
w e s t e r n R i v e r s i d e C o u n t y ( W e s t e r n C o u n t y ) .
�� C o n t i n u e a c t i v e e n g a g e m e n t i n s t a t e a n d f e d e r a l e f f o r t s t o s t r e a m l i n e a n d m o d e r n i z e t h e C a l i f o r n i a
E n v i r o n m e n t a l Q u a l i t y A c t ( C E Q A ) a n d t h e N a t i o n a l E n v i r o n m e n t a l P o l i c y A c t ( N E P A ) t o i m p r o v e
t h e C o m m i s s i o n s a b i l i t y t o d e l i v e r c r i t i c a l p r o j e c t s .
O p e r a t i o n s
�� E f f i c i e n t l y o p e r a t e e x p r e s s l a n e s a n d a c h i e v e h i g h c u s t o m e r s a t i s f a c t i o n t h r o u g h r e d u c t i o n i n
c o n g e s t i o n , m o b i l i t y i m p r o v e m e n t s , a n d m a n a g e m e n t o f d e m a n d .
�� E f f i c i e n t l y a n d c o s t e f f e c t i v e l y o p e r a t e t h e c o m m u t e r r a i l s t a t i o n s a n d f a c i l i t i e s a n d P e r r i s V a l l e y L i n e
( P V L ) r a i l c o r r i d o r t o e n s u r e r e l i a b l e h i g h q u a l i t y c o m m u t e r r a i l s e r v i c e .
�� E f f i c i e n t l y p r o v i d e m o t o r i s t a s s i s t a n c e s e r v i c e s s o t h a t m o t o r i s t s c a n c o n v e n i e n t l y t r a v e l a n d u s e
t r a n s p o r t a t i o n f a c i l i t i e s a s s a f e l y a s p o s s i b l e .
R e g i o n a l P r o g r a m s
�� M a i n t a i n a n a c t i v e i n v o l v e m e n t i n s t a t e a n d f e d e r a l l e g i s l a t i v e m a t t e r s t o e n s u r e t h a t t h e
C o m m i s s i o n r e c e i v e s p r o p e r c o n s i d e r a t i o n f o r t r a n s p o r t a t i o n p r o j e c t s a n d f u n d i n g .
�� M o n i t o r t r a n s i t t r e n d s a n d t h e a s s o c i a t e d e c o n o m i c , s o c i a l , a n d p u b l i c h e a l t h f a c t o r s t h a t i m p a c t
r i d e r s h i p a n d c r e a t e b a r r i e r s t o t r a n s i t g r o w t h .
�� S u b s i d i z e r e l i a b l e a n d c o s t - e f f e c t i v e M e t r o l i n k c o m m u t e r r a i l s e r v i c e t o a n d f r o m R i v e r s i d e C o u n t y ;
S C R R A i s t h e o p e r a t o r o f M e t r o l i n k .
�� P r o v i d e c o n t i n u e d l e a d e r s h i p i n t h e p l a n n i n g a n d d e v e l o p m e n t o f t h e C o a c h e l l a V a l l e y - S a n
G o r g o n i o P a s s c o r r i d o r r a i l s e r v i c e .
�� S u p p o r t i n n o v a t i v e p r o g r a m s t h a t p r o v i d e t r a n s i t a s s i s t a n c e i n h a r d t o s e r v e r u r a l a r e a s o r f o r r i d e r s
w i t h s p e c i a l t r a n s i t n e e d s .
�� P r o m o t e c o s t c o n t r o l s a n d o p e r a t i n g e f f i c i e n c y f o r t r a n s i t o p e r a t o r s .
�� M a i n t a i n e f f e c t i v e p a r t n e r s h i p s a m o n g c o m m u t e r s , e m p l o y e r s , a n d g o v e r n m e n t t o i n c r e a s e t h e
e f f i c i e n c y o f o u r t r a n s p o r t a t i o n s y s t e m b y e n c o u r a g i n g a n d p r o m o t i n g m o t o r i z e d a n d n o n -
m o t o r i z e d t r a n s p o r t a t i o n a l t e r n a t i v e s s u c h a s v a n p o o l s .
M a n a g e m e n t S e r v i c e s
�� M a i n t a i n c l o s e c o m m u n i c a t i o n w i t h C o m m i s s i o n e r s a n d e d u c a t e p o l i c y m a k e r s o n a l l i s s u e s o f
i m p o r t a n c e t o t h e C o m m i s s i o n .
�� D e v e l o p a n d e x e c u t e a c o m m u n i c a t i o n s a n d p u b l i c e n g a g e m e n t s t r a t e g y f o r t h e p u r p o s e s o f
e d u c a t i o n , i n f o r m a t i o n , a n d c u s t o m e r s e r v i c e .
�� M a i n t a i n a d m i n i s t r a t i v e p r o g r a m d e l i v e r y c o s t s b e l o w t h e p o l i c y t h r e s h o l d o f 4 % o f M e a s u r e A
r e v e n u e s ; t h e F Y 2 0 2 1 / 2 2 M a n a g e m e n t S e r v i c e s b u d g e t i s 2 . 0 0 % o f M e a s u r e A r e v e n u e s .
�� M a i n t a i n a d m i n i s t r a t i v e s a l a r i e s a n d b e n e f i t s a t l e s s t h a n 1 % o f M e a s u r e A r e v e n u e s ; t h e F Y 2 0 2 1 / 2 2
a d m i n i s t r a t i v e s a l a r i e s a n d b e n e f i t s i s 0 . 7 1 % o f M e a s u r e A r e v e n u e s .
�� M a i n t a i n p r u d e n t c a s h r e s e r v e s t o p r o v i d e s o m e l e v e l o f i n s u l a t i o n f o r u n p l a n n e d e x p e n d i t u r e s .
�� M a i n t a i n c u r r e n t s t r o n g b o n d r a t i n g s w i t h r a t i n g a g e n c i e s .
�� E s t a b l i s h a n d m a i n t a i n r e v e n u e s a n d r e s e r v e s g e n e r a t e d f r o m t o l l o p e r a t i o n s t o b e a v a i l a b l e f o r
d e b t s e r v i c e i n a c c o r d a n c e w i t h t o l l s u p p o r t e d d e b t a g r e e m e n t s ; m a i n t e n a n c e , r e p a i r ,
r e h a b i l i t a t i o n , a d m i n i s t r a t i o n a n d o p e r a t i o n s ; a n d c a p i t a l p r o j e c t s w i t h i n t h e c o r r i d o r .
L i n k i n g C o m m i s s i o n a n d D e p a r t m e n t a l M i s s i o n S t a t e m e n t s
T h e f o l l o w i n g m a t r i x ( T a b l e 1 ) i l l u s t r a t e s t h e l i n k a g e o f t h e C o m m i s s i o n s c o r e m i s s i o n s t a t e m e n t s
d e s c r i b e d i n t h i s s e c t i o n t o t h e i n d i v i d u a l d e p a r t m e n t a l m i s s i o n s t a t e m e n t s i n c l u d e d i n e a c h
d e p a r t m e n t s s e c t i o n .
1 5
Table 1 – Relationship between Commission and Departmental Mission Statements
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 X
Regional Conservation X 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 $1,605,994,100, an increase of 108% over FY 2020/21 projected
sources and 83% increase over the FY 2020/21 budget. Total sources are comprised of revenues of
$735,257,100, transfers in of $196,240,000, and debt proceeds of $674,497,000. The projected fund
balance at June 30, 2021 available for expenditures/expenses (excluding amounts restricted for debt
service of $11,681,500 and advances receivable of $19,384,700) is $969,908,400. Accordingly, total
funding available for the FY 2021/22 budget totals $2,575,902,500.
Table 2 – Sources FY 2020-2022
FY 19/20 FY 20/21 FY 20/21 FY 21/22 Dollar Percent
Actual Revised Budget Projected Budget Change Change
Measure A Sales Tax 195,036,300$ 195,000,000$ 195,000,000$ 195,000,000$ -$ 0%
LTF Sales Tax 100,283,600 100,000,000 100,000,000 100,000,000 - 0%
STA Sales Tax 27,796,500 28,915,700 19,015,100 23,862,200 (5,053,500) -17%
Intergovernmental 147,620,000 273,315,400 227,107,700 338,753,900 65,438,500 24%
TUMF Revenue 23,257,900 15,500,000 11,000,000 11,000,000 (4,500,000) -29%
Tolls, Penalties, and Fees 56,434,000 31,718,600 44,545,700 65,123,700 33,405,100 105%
Other Revenue 566,600 549,100 582,400 657,300 108,200 20%
Investment Income 18,491,600 3,545,500 6,462,500 860,000 (2,685,500) -76%
Transfers In 146,618,000 179,922,600 152,650,800 196,240,000 16,317,400 9%
Debt Proceeds 111,301,900 47,371,900 15,661,000 674,497,000 627,125,100 1324%
TOTAL Sources 827,406,400$ 875,838,800$ 772,025,200$ 1,605,994,100$ 730,155,300$ 83%
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. Prior to the COVID-19
pandemic in early 2020, Riverside County’s economy benefitted from employment gains due to 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) 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 had increased economic activity contributing to
stable sales tax revenue growth through FY 2018/19 as noted on Chart 3. Following the onset of the
pandemic, the local unemployment rate increased while sales tax revenues declined 3% less than
anticipated in FY 2019/20. During FY 2020/21, the local unemployment rate has declined and sales tax
revenues have been better than anticipated. The strong sales tax revenues performance is attributable
to the diversified economic taxable sales base in the County.
16
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 17/18 FY 18/19 FY 19/20 FY 20/21 FY 21/22
Measure A Sales Tax
LTF Sales Tax
STA Sales Tax
TUMF
Federal, State, Local Revenues
Toll Revenue
Transfers In
Debt Proceeds
Regardless of the current and 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 more affordable 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 Local Transportation Fund (LTF) sales
taxes, other revenues and financing sources are required to fund the Commission’s programs and
projects as illustrated in Chart 4. The Commission receives Measure A and LTF sales tax revenues from
the California Department of Tax and Fee Administration (CDTFA), as statutorily created and authorized
successor to the former California State Board of Equalization.
Chart 4 – Sources: Major Categories
Measure A Sales Tax 12%
LTF Sales Tax 6%
STA Sales Tax2%
Intergovernmental 21%
TUMF Revenue1%
Tolls, Penalties, and Fees4%Investment Income0%Transfers In 12%
Debt Proceeds42%
After considering the state of the local economy due to COVID-19, staff projects Measure A sales tax
revenues of $195,000,000 for FY 2021/22. This is no change from the FY 2020/21 revised projection of
$195,000,000. Generally the Commission reassesses its sales tax revenue projections at midyear based
on the economy and revenue trends; however, the Commission anticipates more frequent reviews
throughout FY 2021/22 as the post COVID-19 impacts become known.
17
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. 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). LTF sales
tax revenue is budgeted at $100,000,000, no change from the FY 2020/21 revised projection.
A statewide sales tax on motor vehicle diesel fuel generates State Transit Assistance (STA) funds, which
the State Controller allocates by formula to the Commission for allocations to the County’s public transit
operators. SB 1 provides additional STA revenues, including State of Good Repair (SGR) funds for transit
maintenance, rehabilitation, and capital projects. The FY 2021/22 STA/SGR allocations, based on recent
State estimates, is $23,862,200.
Intergovernmental revenues include reimbursement revenues from federal sources of $107,431,400,
state sources of $210,931,000, and local agencies of $20,391,500 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 24% in FY 2021/22 compared to the FY
2020/21 budget is related to increases in federal and state agency 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 Hamner Bridge widening and to the County and city of Corona
for grade separation projects. Other state reimbursements will fund the SR-60 Truck Lanes, 71/91
Connector, Mid County Parkway (MCP) I-215/Placentia Avenue Interchange, I-15/Railroad Canyon
Interchange, and station rehabilitation projects. Federal reimbursements provide funding for the I-15
Express LanesSouthern Extension, SR-91 Corridor Operations Project (91 COP), SR-60 Truck Lanes, 71/91
Connector, Pachappa Underpass, MCP second construction package, and station rehabilitation
projects. In connection with the Coronavirus Aid, Relief, and Economic Security (CARES) Act, the
Commission anticipates that less than 2% of federal revenues will primarily support commuter rail stations
and the commuter assistance program. 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 2021/22 TUMF fees at $11,000,000. The 29% decrease is
related to additional TUMF zone reimbursements in the prior year for the Lake Elsinore I-15/Railroad
Canyon Interchange project.
FY 2020/21 marked the fourth complete fiscal year of toll operations for the RCTC 91 Express Lanes
following substantial completion of the 91 Project in March 2017. Since opening and through February
2020, the RCTC 91 Express Lanes traffic and toll revenues surpassed initial 2013 financing assumptions
and an updated Riverside County 91 Express Lanes Extension Investment Grade Traffic and Revenue
Study approved by the Commission in December 2018. As a result of COVID-19 stay at home orders,
traffic and related revenues on the RCTC 91 Express Lanes declined below the 2018 updated study;
however, traffic and related revenues have improved through February 2021 with traffic levels
approximately 26% and revenues 41% lower than the same period through February 2020. Based on the
anticipated impacts of post COVID-19 on the RCTC 91 Express Lanes, the Commission conservatively
estimates FY 2021/22 toll revenues, penalties and fees of $41,551,900 — a 47% increase from the FY
2020/21 projected revenues of $28,205,000.
FY 2020/21 marked the initial year of toll operations for the 15 Express Lanes following substantial
completion of the I-15 Express Lanes Project and opening of the 15 Express Lanes in April 2021. For FY
2021/22, the Commission projects $23,571,800 in toll revenues, penalties and fees for the 15 Express
Lanes.
18
Other revenue of $657,300 includes property management generated from properties acquired in
connection with various highway and rail properties.
The Commission anticipates a 76% decrease in FY 2021/22 investment income due to extremely
conservative investment yield projections resulting from lower interest rates in FY 2020/21. The FY 2021/22
budget projects investment income at a 0.10% investment yield, compared to at least 0.50% in recent
prior year budgets.
Transfers in of $196,240,000 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, new corridors, and regional arterial
funds. Debt proceeds consist of $6,919,000 in drawdowns from the federal Transportation Infrastructure
Finance and Innovation Act (TIFIA) Loan related to the I-15 Express Lanes Project and $667,578,000 in
senior lien and second lien toll revenue refunding bonds (2020 Refunding Bonds) from the anticipated
refinancing of the Commission’s 2013 Toll Revenue Senior Lien Current Interest Bonds and 2013 TIFIA Loan
related to the 91 Project.
Total uses (Table 3), including transfers out of $196,240,000, are budgeted at $1,748,604,000, a 79%
increase from the prior year budget amount of $979,349,700. Program expenditures and transfers out
totaling $997,087,400 represent 57% of total budgeted uses in FY 2021/22. Program costs increased by
13% from $880,658,200 in FY 2020/21 due to projects and programs identified below.
Table 3 – Uses FY 2020-2022
FY 19/20 FY 20/21 FY 20/21 FY 21/22 Dollar Percent
Actual Revised Budget Projected Budget Change Change
Capital Highway, Rail, and Regional Arterials 422,079,000$ 586,548,100$ 408,752,400$ 633,370,100$ 46,822,000$ 8%
Capital Local Streets and Roads 58,983,400 59,152,100 59,152,100 59,138,400 (13,700) 0%
Commuter Assistance 3,938,600 5,333,900 3,356,500 4,785,600 (548,300) -10%
Debt Service 76,885,000 76,638,900 76,948,600 729,093,600 652,454,700 851%
Management Services 20,849,300 22,052,600 19,789,600 22,423,000 370,400 2%
Motorist Assistance 7,334,000 8,994,900 6,981,800 9,096,100 101,200 1%
Planning and Programming 8,078,200 8,202,700 5,020,000 8,121,100 (81,600) -1%
Public and Specialized Transit 124,913,900 123,932,200 74,284,200 164,063,200 40,131,000 32%
Rail Maintenance and Operations 31,015,900 51,199,500 40,245,500 42,153,100 (9,046,400) -18%
Regional Conservation - 2,050,000 2,030,300 5,570,500 3,520,500 172%
Toll Operations 16,299,800 35,244,800 25,799,100 70,789,300 35,544,500 101%
TOTAL Uses 770,377,100$ 979,349,700$ 722,360,100$ 1,748,604,000$ 769,254,300$ 79% Note: Management Services includes Executive Management, Administration, External Affairs, and Finance.
Capital highway, rail, and regional arterials budgeted uses of $633,370,100 are 8% higher compared to
the FY 2020/21 budget due to project activity on the I-15 Corridor Operations Project (15 COP), 15/91
Express Lanes Connector, County Hamner Bridge widening, County and city of Corona grade
separation projects, MCP second construction package, 71/91 Connector, SR-60 Truck Lanes, and
completion and close-out activities on the I-15 Express Lanes Project and 91 Project.
Local streets and roads expenditures of $59,138,400 is comparative to the FY 2020/21 budget and
represent the disbursements of 2009 Measure A to local jurisdictions for the construction, repair, and
maintenance of local streets and roads.
Commuter assistance budgeted expenditures of $4,785,600 are 10% lower than the FY 2020/21 budget
due to a decline in projected vanpools and restructuring of rideshare/vanpool platforms.
Debt service of $729,093,600 includes the refinancing of the 91 Project toll debt with proceeds from the
2020 Refunding Bonds. The Commission approved and budgeted for the refinancing in March 2020;
19
however, the Commission postponed the refinancing to FY 2021/22 due to market disruptions caused
by COVID-19.
Management services expenditures of $22,423,000 increased 2% due to four new positions approved
by the Commission in November 2020. The positions were necessary for workload management and
continuance of service levels specifically for the Finance and External Affairs departments in connection
with the Commission serving as the management agency for the Western Riverside County Regional
Conservation Authority (RCA) effective January 1, 2021. Expenditures include information technology
equipment upgrades, communication and engagement efforts, financial advisory services, and debt
service contribution.
Motorist assistance expenditures of $9,096,100 increased 1% due to transfers out for SAFE matching funds
to Freeway Service Patrol (FSP) and commuter assistance special projects.
Planning and programming budgeted expenditures of $8,121,100 reflect a 1% decrease and is
comparable to the FY 2020/21 budget.
Public and specialized transit budgeted expenditures of $164,063,200 are 32% higher than the FY
2020/21budget. With the increased federal funds available to help respond to COVID-19, operating
subsidy expenditures for public transit decreased in the previous year.
The rail maintenance and operations budgeted expenditures of $42,153,100 are 18% lower than the FY
2020/21 budget due to the inability to obtain access agreements with the host railroads for the Indio
special events train platform for the Coachella Valley-San Gorgonio Pass Corridor rail service.
Regional conservation budgeted expenditures of $5,570,500 reflect a full year serving as the managing
agency for the RCA, as FY 2020/21 includes six months after the effective date of the Implementation
and Management Services Agreement between the Commission and the RCA.
Toll operations expenses are budgeted at $70,789,300 to manage the operations, maintenance, and
capital support of the RCTC 91 Express Lanes and 15 Express Lanes and to pay interest on 91 Express
Lanes toll revenue debt. The 101% increase is due to a full year of 15 Express Lanes operations following
opening in April 2021, required repair and rehabilitation activity on the RCTC 91 Express Lanes, and
transfer of surplus toll revenues for the 15/91 Express Lanes Connector project.
Chart 5 is an illustration of total uses included in the FY 2021/22 budget by major categories.
Chart 5 – Uses: Major Categories
Capital Highway, Rail, and
Regional Arterials
36%
Capital Local Streets and
Roads
3%
Commuter Assistance
0%
Debt Service
42%
Management Services
1%
Motorist Assistance
1%
Planning and Programming
1%
Public and Specialized
Transit
9%
Rail Maintenance and
Operations
3%
Regional Conservation
0%
Toll Operations
4%
20
Commission Personnel
The Commission’s salaries and benefits total $15,005,000 for FY 2021/22. This represents an increase of
$1,859,000 or 14% over the FY 2020/21 budget of $13,146,000 (Chart 6). The increase relates primarily to
additional staff positions related to regional conservation and to maintain management services levels
for a full year, reinstating funding for previously approved positions, a 4% pool for performance merit-
based salary increases, and an annual salary range cost of living adjustment. The 18% decrease from
FY 2019/20 is due to the Commission’s one-time disbursement to fund the California Public Employees
Retirement System (CalPERS) net pension liability of $8.6 million. The Commission’s salary schedule for
FY 2021/22 is included in Appendix B 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
$-
$2,000,000
$4,000,000
$6,000,000
$8,000,000
$10,000,000
$12,000,000
$14,000,000
$16,000,000
$18,000,000
$20,000,000
FY 17/18 FY 18/19 FY 19/20 FY 20/21 FY 21/22
The 73 full-time equivalent (FTE) positions included in the FY 2021/22 budget (Table 4) remains consistent
with the FY 2020/21 budget and reflects an increase of 23 FTE from FY 2019/20. The 23 FTEs include 15
regional conservation positions related to serving as managing agency for the RCA, four new
management services positions, and reinstatement of funding for four approved but unfilled RCTC
positions.
The Commission accomplished significant organization changes over the last year related to
management of the RCA, toll operations, and 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 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.
21
Table 4 – Full-Time Equivalents by Department FY 2020—2022
FY 19/20 FY 20/21 FY 21/22
Executive Management 0.8 1.3 0.8
Administration 5.3 5.6 5.7
External Affairs 3.0 3.4 3.4
Finance 9.3 10.7 9.4
Planning and Programming 5.8 4.8 5.6
Rail Maintenance and Operations 3.5 4.4 4.4
Public and Specialized Transit 2.7 2.7 2.7
Commuter Assistance 1.5 1.8 1.7
Motorist Assistance 0.8 1.1 1.4
Regional Conservation 0.0 15.8 17.5
Capital Project Development and Delivery 13.3 17.3 13.7
Toll Operations 4.0 4.1 6.7
TOTAL 50.0 73.0 73.0
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
69%
Retirement
19%
Health
11%
Other Fringes
1%
Department Initiatives
Staff prepared each department’s budget based on key assumptions, accomplishments in FY 2020/21,
major initiatives for FY 2021/22, and department goals and related objectives. Tables 5 through 16
present the key initiatives and summary of expenditures/expenses for each department. The
department budgets section contains detailed discussions about each department.
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.
Actively monitor, assess, and manage financial implications of the COVID-19 crisis.
Influence and monitor the implementation of SB 743 related to transportation impacts analysis and
mitigation as part of CEQA.
22
�� C o n t i n u e p l a n n i n g e f f o r t s t o a d v a n c e p a s s e n g e r r a i l s e r v i c e i n t h e C o a c h e l l a V a l l e y - S a n G o r g o n i o
P a s s C o r r i d o r .
�� A d v o c a t e f o r s t a t e a n d f e d e r a l i n v e s t m e n t s i n t r a n s p o r t a t i o n t o f u n d n e e d e d t r a n s p o r t a t i o n p r i o r i t i e s
i n t h e C o u n t y a n d s t i m u l a t e t h e l o c a l e c o n o m y .
�� M a i n t a i n r e g i o n a l c o o p e r a t i o n a n d c o l l a b o r a t i o n a s a s i g n i f i c a n t e f f o r t c o n s i s t e n t w i t h t h e
p h i l o s o p h y a n d m i s s i o n o f t h e C o m m i s s i o n .
�� S u p p o r t a c o m p r e h e n s i v e s o c i a l m e d i a o u t r e a c h p r o g r a m t o b u i l d a w a r e n e s s o f t h e C o m m i s s i o n
a n d i t s r o l e i n t h e c o m m u n i t y .
�� M a i n t a i n a n e f f e c t i v e m i d - s i z e d t r a n s p o r t a t i o n a g e n c y w i t h d e d i c a t e d s t a f f .
T a b l e 5 E x e c u t i v e M a n a g e m e n t
F Y 1 9 / 2 0 F Y 2 0 / 2 1 F Y 2 0 / 2 1 F Y 2 1 / 2 2 D o l l a r P e r c e n t
A c t u a l R e v i s e d B u d g e t P r o j e c t e d B u d g e t C h a n g e C h a n g e
P e r s o n n e l 6 2 8 , 3 0 0 $ 4 8 2 , 2 0 0 $ 4 8 2 , 2 0 0 $ 3 4 5 , 3 0 0 $ ( 1 3 6 , 9 0 0 ) $ - 2 8 %
P r o f e s s i o n a l 2 3 4 , 0 0 0 3 0 0 , 0 0 0 3 0 0 , 0 0 0 3 0 0 , 0 0 0 - 0 %
S u p p o r t 6 1 , 8 0 0 9 1 , 8 0 0 8 0 , 9 0 0 9 1 , 8 0 0 - 0 %
T O T A L 9 2 4 , 1 0 0 $ 8 7 4 , 0 0 0 $ 8 6 3 , 1 0 0 $ 7 3 7 , 1 0 0 $ ( 1 3 6 , 9 0 0 ) $ - 1 6 % �
A d m i n i s t r a t i o n
�� P r o v i d e h i g h q u a l i t y s u p p o r t s e r v i c e s t o t h e C o m m i s s i o n a n d t o i n t e r n a l a n d e x t e r n a l c u s t o m e r s .
�� M a i n t a i n t r a n s p a r e n c y a n d p u b l i c a c c e s s i b i l i t y t o C o m m i s s i o n b u s i n e s s d u r i n g C O V I D - 1 9 c r i s i s .
�� M a i n t a i n a n a c c u r a t e a n d e f f i c i e n t e l e c t r o n i c r e c o r d s m a n a g e m e n t s y s t e m .
�� P r o v i d e t i m e l y c o m m u n i c a t i o n s a n d h i g h q u a l i t y s u p p o r t s e r v i c e s t o C o m m i s s i o n e r s .
�� U p d a t e t e c h n o l o g y t o i m p r o v e i n t e r n a l p r o c e s s e s a n d i n t e r a c t i o n w i t h t h e p u b l i c .
�� S u p p o r t a n d d e v e l o p a m o t i v a t e d w o r k f o r c e w i t h a f r a m e w o r k o f a c t i v i t i e s a n d p r a c t i c e s t h a t
c o m p l y w i t h e m p l o y m e n t l a w s a n d r e g u l a t i o n s .
T a b l e 6 A d m i n i s t r a t i o n
F Y 1 9 / 2 0 F Y 2 0 / 2 1 F Y 2 0 / 2 1 F Y 2 1 / 2 2 D o l l a r P e r c e n t
A c t u a l R e v i s e d B u d g e t P r o j e c t e d B u d g e t C h a n g e C h a n g e
P e r s o n n e l 1 , 4 1 8 , 6 0 0 $ 7 6 7 , 6 0 0 $ 7 6 6 , 8 0 0 $ 8 8 4 , 5 0 0 $ 1 1 6 , 9 0 0 $ 1 5 %
P r o f e s s i o n a l 1 , 0 2 9 , 5 0 0 1 , 1 1 3 , 6 0 0 1 , 0 1 1 , 5 0 0 1 , 2 4 1 , 6 0 0 1 2 8 , 0 0 0 1 1 %
S u p p o r t 8 2 3 , 5 0 0 1 , 2 1 2 , 4 0 0 8 8 7 , 6 0 0 1 , 3 5 0 , 4 0 0 1 3 8 , 0 0 0 1 1 %
C a p i t a l O u t l a y 1 3 2 , 9 0 0 4 0 5 , 0 0 0 - 3 6 0 , 0 0 0 ( 4 5 , 0 0 0 ) - 1 1 %
D e b t S e r v i c e 1 5 , 8 0 0 - - - - N / A
T O T A L 3 , 4 2 0 , 3 0 0 $ 3 , 4 9 8 , 6 0 0 $ 2 , 6 6 5 , 9 0 0 $ 3 , 8 3 6 , 5 0 0 $ 3 3 7 , 9 0 0 $ 1 0 % �
�
E x t e r n a l A f f a i r s
�� D e v e l o p e f f e c t i v e p a r t n e r s h i p s w i t h t r a n s p o r t a t i o n p r o v i d e r s t o c o m m u n i c a t e a u n i f i e d m e s s a g e t o
C o n g r e s s r e g a r d i n g m o b i l i t y n e e d s .
�� A d v o c a t e o n b e h a l f o f R i v e r s i d e C o u n t y s i n t e r e s t s r e g a r d i n g t h e i m p l e m e n t a t i o n o f S B 7 4 3 a n d t h e
S t a t e s C l i m a t e A c t i o n P l a n f o r T r a n s p o r t a t i o n I n f r a s t r u c t u r e ( C A P T I ) .
�� A d v o c a t e p o s i t i o n s i n t h e S t a t e L e g i s l a t u r e a n d i n C o n g r e s s t h a t a d v a n c e t h e C o u n t y s
t r a n s p o r t a t i o n i n t e r e s t s .
�� C o n t i n u e a l e a d e r s h i p r o l e i n f o r m u l a t i n g a c o u n t y w i d e d i r e c t i o n o n f e d e r a l t r a n s p o r t a t i o n p o l i c i e s .
�� C o n d u c t a c o n c e r t e d o u t r e a c h e f f o r t t o n e w f e d e r a l a n d s t a t e r e p r e s e n t a t i v e s o n l o c a l
t r a n s p o r t a t i o n i s s u e s .
�� U s e m o d e r n t e c h n o l o g y t o s u p p o r t a r o b u s t p u b l i c c o m m u n i c a t i o n a n d e n g a g e m e n t e f f o r t
f o c u s i n g o n a c c e s s i b l e a n d t r a n s p a r e n t c o m m u n i c a t i o n o f t h e C o m m i s s i o n s p r o j e c t s a n d
p r o g r a m s .
�� B u i l d a w a r e n e s s a n d s u p p o r t f o r t h e R C A a n d t h e i m p l e m e n t a t i o n o f t h e M u l t i p l e S p e c i e s H a b i t a t
C o n s e r v a t i o n P l a n ( M S H C P ) .
2 3
Table 7 – External Affairs
FY 19/20 FY 20/21 FY 20/21 FY 21/22 Dollar Percent
Actual Revised Budget Projected Budget Change Change
Personnel 1,255,300$ 734,600$ 729,500$ 829,200$ 94,600$ 13%
Professional 671,800 1,020,500 990,500 1,014,900 (5,600) -1%
Support 108,500 232,100 201,500 230,500 (1,600) -1%
TOTAL 2,035,600$ 1,987,200$ 1,921,500$ 2,074,600$ 87,400$ 4%
Finance
Proactively monitor, assess, manage, and minimize COVID-19 crisis financial impacts on the
Commission’s programs and projects to the maximum extent possible.
Continue appropriate uses of long- and short-term financing to advance the Commission’s 2009
Measure A projects.
Provide support to the RCTC 91 Express Lanes and 15 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 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 19/20 FY 20/21 FY 20/21 FY 21/22 Dollar Percent
Actual Revised Budget Projected Budget Change Change
Personnel 2,569,200$ 1,686,500$ 1,672,800$ 1,676,700$ (9,800)$ -1%
Professional 1,390,700 2,416,300 1,819,000 2,217,000 (199,300) -8%
Support 359,400 669,000 678,000 933,800 264,800 40%
Capital Outlay 132,500 913,300 161,600 870,000 (43,300) -5%
Transfers Out 10,033,300 10,007,700 10,007,700 10,077,300 69,600 1%
TOTAL 14,485,100$ 15,692,800$ 14,339,100$ 15,774,800$ 82,000$ 1%
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), 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.
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.
Administer the Bicycle and Pedestrian Facilities Program (SB 821).
24
Table 9 – Planning and Programming
FY 19/20 FY 20/21 FY 20/21 FY 21/22 Dollar Percent
Actual Revised Budget Projected Budget Change Change
Personnel 2,479,900$ 1,028,000$ 1,010,600$ 1,333,600$ 305,600$ 30%
Professional 950,300 1,167,300 314,000 473,000 (694,300) -59%
Support 573,300 1,367,100 12,100 28,600 (1,338,500) -98%
Projects and Operations 3,149,700 3,578,900 2,621,900 5,445,200 1,866,300 52%
Transfers Out 925,000 1,061,400 1,061,400 840,700 (220,700) -21%
TOTAL 8,078,200$ 8,202,700$ 5,020,000$ 8,121,100$ (81,600)$ -1%
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 meeting parking requirements.
Continue to support and evaluate activities related to the PVL service, such as promoting ridership
especially for weekend service.
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.
Table 10 – Rail Maintenance and Operations
FY 19/20 FY 20/21 FY 20/21 FY 21/22 Dollar Percent
Actual Revised Budget Projected Budget Change Change
Personnel 1,347,200$ 866,700$ 866,700$ 855,600$ (11,100)$ -1%
Professional 858,600 2,530,000 1,282,900 1,972,900 (557,100) -22%
Support 2,789,400 4,021,100 2,732,300 3,630,400 (390,700) -10%
Projects and Operations 25,098,800 41,498,400 34,051,300 34,613,700 (6,884,700) -17%
Capital Outlay 167,300 528,500 405,200 180,000 (348,500) -66%
Transfers Out 754,600 1,754,800 907,100 900,500 (854,300) -49%
TOTAL 31,015,900$ 51,199,500$ 40,245,500$ 42,153,100$ (9,046,400)$ -18%
Public and Specialized Transit
Coordinate the operation of all public transportation services, especially for disadvantaged
communities and essential workers, within the County by promoting program efficiency between
transit operators.
Monitor and coordinate federal stimulus (CARES Act, Coronavirus Response and Relief
Supplemental Appropriations Act (CRRSAA), and American Rescue Plan Act of 2021 (ARPA))
allocations for COVID-19-related service impacts with transit operators.
Monitor and coordinate state and federal regulations for operating and/or capital impacts with
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 Transportation
Development Act (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.
Table 11 – Public and Specialized Transit
FY 19/20 FY 20/21 FY 20/21 FY 21/22 Dollar Percent
Actual Revised Budget Projected Budget Change Change
Personnel 878,400$ 523,100$ 450,000$ 551,700$ 28,600$ 5%
Professional 287,200 579,700 326,600 1,179,700 600,000 104%
Support 45,100 91,600 67,700 115,600 24,000 26%
Projects and Operations 99,483,500 101,383,700 55,546,100 143,681,400 42,297,700 42%
Transfers Out 24,219,700 21,354,100 17,893,800 18,534,800 (2,819,300) -13%
TOTAL 124,913,900$ 123,932,200$ 74,284,200$ 164,063,200$ 40,131,000$ 32%
25
Commuter Assistance
Operate a cost-effective Transportation Demand Management (TDM) program within the County
that results in a reduction of single occupant vehicles, vehicle miles traveled, and emissions.
Transition from a locally provisioned Inland Empire-based rideshare and vanpool system to a
regional platform/database.
Maintain and grow employer partnerships through value-added services and tools for rideshare and
telework programs.
Evaluate the feasibility of expanding Commuter Assistance services and incentives to the Coachella
Valley to stimulate countywide employer and TDM participation.
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; release a request for proposals (RFP) for the Commission and SBCTA’s next
evolution of the region’s TDM program.
Optimize park and ride facilities to support shared-ride arrangements and facilitate transit
connections.
Table 12 – Commuter Assistance
FY 19/20 FY 20/21 FY 20/21 FY 21/22 Dollar Percent
Actual Revised Budget Projected Budget Change Change
Personnel 638,200$ 401,700$ 401,700$ 321,800$ (79,900)$ -20%
Professional 441,900 747,700 477,400 509,200 (238,500) -32%
Support 18,900 179,700 3,500 57,900 (121,800) -68%
Projects and Operations 2,561,500 3,742,000 2,211,100 3,600,600 (141,400) -4%
Transfers Out 278,100 262,800 262,800 296,100 33,300 13%
TOTAL 3,938,600$ 5,333,900$ 3,356,500$ 4,785,600$ (548,300)$ -10%
Motorist Assistance
Maintain a high benefit-to-cost ratio related to the performance of the FSP program.
Transition from a locally provisioned IE511 system to a regional southern California 511 solution.
Implement a “mobile” call box program to supplement the existing fixed call box system and
enhance access to motorist aid call center services.
Table 13 – Motorist Assistance
FY 19/20 FY 20/21 FY 20/21 FY 21/22 Dollar Percent
Actual Revised Budget Projected Budget Change Change
Personnel 279,300$ 207,600$ 207,600$ 224,900$ 17,300$ 8%
Professional 361,100 534,500 491,300 535,300 800 0%
Support 272,300 203,800 170,800 203,600 (200) 0%
Projects and Operations 3,726,800 5,433,000 3,856,100 5,227,000 (206,000) -4%
Transfers Out 2,694,500 2,616,000 2,256,000 2,905,300 289,300 11%
TOTAL 7,334,000$ 8,994,900$ 6,981,800$ 9,096,100$ 101,200$ 1%
Regional Conservation
Maintain commitment to protecting sensitive habitat and ensuring open space is a key component
in enhancing the quality of life for local residents.
Strengthen communications to stakeholders, members of the public, and elected officials to be
transparent about the RCA’s conservation efforts, funding, and collaboration opportunities.
Build upon relationships with local, state and federal agencies to manage lands purchased or
controlled by the RCA.
26
Table 14 – Regional Conservation
FY 19/20 FY 20/21 FY 20/21 FY 21/22 Dollar Percent
Actual Revised Budget Projected Budget Change Change
Personnel -$ 1,500,000$ 1,500,000$ 3,337,700$ 1,837,700$ 123%
Professional - 86,200 72,500 243,900 157,700 183%
Support - 7,800 7,800 60,300 52,500 673%
Projects and Operations - 256,000 250,000 500,000 244,000 95%
Transfers Out - 200,000 200,000 1,428,600 1,228,600 614%
TOTAL -$ 2,050,000$ 2,030,300$ 5,570,500$ 3,520,500$ 172%
Capital Project Development and Delivery
Continue project work on the 91 COP, I-15 Express LanesSouthern Extension, 15/91 Express Lanes
Connector, 15 COP, I-215/Placentia Avenue Interchange improvement, 71/91 Connector, SR-60
Truck Lanes, and MCP and Smart Freeway projects included in the Western County Delivery Plan as
well as projects on behalf of other agencies, including the I-15/Railroad Canyon Interchange, I-
10/Highland Springs Road Interchange, and Santa Ana River Trail.
Continue design and operations planning of the 241/91 Express Lanes Connector and I-15 Express
LanesNorthern Extension led by other agencies.
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.
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 15 – Capital Project Development and Delivery
FY 19/20 FY 20/21 FY 20/21 FY 21/22 Dollar Percent
Actual Revised Budget Projected Budget Change Change
Personnel 5,909,500$ 3,584,000$ 3,583,200$ 3,094,800$ (489,200)$ -14%
Professional 2,842,600 4,303,700 2,574,800 4,586,300 282,600 7%
Support 526,100 2,457,900 2,140,000 1,478,600 (979,300) -40%
Projects and Operations 363,630,200 489,901,600 337,042,300 537,510,500 47,608,900 10%
Capital Outlay 3,364,700 3,927,500 3,642,500 4,769,700 842,200 21%
Debt Service 69,749,300 69,519,000 69,828,700 70,037,700 518,700 1%
Transfers Out 104,789,300 141,525,500 118,921,700 141,068,600 (456,900) 0%
TOTAL 550,811,700$ 715,219,200$ 537,733,200$ 762,546,200$ 47,327,000$ 7%
Toll Operations
Manage the operations of the RCTC 91 Express Lanes and 15 Express Lanes adhering to the
Commission’s Express Lanes toll policies.
Manage toll operations using investment grade traffic and revenue studies and cost estimate
assumptions specific to each express lane facility.
Provide timely and effective reporting of toll operation metrics including revenue, transactions,
carpool usage, and performance indicators.
Support the design-build activities related to the 15/91 Express Lanes Connector and the design and
development led by other agencies related to the 241/91 Express Lanes Connector and I-15 Express
Lanes Northern Extension.
Participate in the California Toll Operators Committee (CTOC) to advance regional and statewide
tolling initiatives, technology, interoperability, and coordination among California toll agencies.
27
Table 16 – Toll Operations
FY 19/20 FY 20/21 FY 20/21 FY 21/22 Dollar Percent
Actual Revised Budget Projected Budget Change Change
Personnel 786,200$ 1,364,000$ 1,364,000$ 1,549,200$ 185,200$ 14%
Professional 1,341,700 6,072,900 3,084,300 4,992,000 (1,080,900) -18%
Support and Maintenance 3,321,300 5,576,100 3,462,700 8,775,500 3,199,400 57%
Projects and Operations 7,509,800 20,783,200 16,744,500 35,104,500 14,321,300 69%
Capital Outlay 417,300 308,300 3,300 180,000 (128,300) -42%
Debt Service 7,119,900 7,119,900 7,119,900 659,055,900 651,936,000 9157%
Transfers Out 2,923,500 1,140,300 1,140,300 20,188,100 19,047,800 1670%
TOTAL 23,419,700$ 42,364,700$ 32,919,000$ 729,845,200$ 687,480,500$ 1623%
Fund Balances
The projected total fund balance as of June 30, 2021 is $1,000,974,600. The Commission expects the FY
2021/22 budgeted activities to result in an $142,609,900 decrease of total fund balance at June 30, 2022
to $858,364,700. The primary cause of the decrease is project activities in FY 2021/22 related to the I-15
Express Lanes Project completion, MCP project, I-15/Railroad Canyon Interchange, close-out activity
on the 91 Project, rail station rehabilitation and maintenance, Western County Measure A and TUMF
regional arterial projects, and public transit allocations. Table 17 presents the components of the
projected fund balance by program at June 30, 2022.
Table 17 – Projected Fund Balances by Fund Type and Program at June 30, 2022
Western County Coachella Valley Palo Verde Other Total
Restricted:
Bond Financing 16,239,600$ -$ -$ -$ 16,239,600$
Commuter Assistance 16,208,900 - - - 16,208,900
Debt Service - - - 11,693,200 11,693,200
Economic Development 6,853,900 - - - 6,853,900
Highways 40,494,300 43,823,700 - 60,412,600 144,730,600
New Corridors 54,373,300 - - - 54,373,300
Planning and Programming - - - 1,610,500 1,610,500
Public and Specialized Transit 6,915,200 1,062,000 - 264,248,300 272,225,500
Rail 43,160,100 - - 9,966,200 53,126,300
CETAP - - - 26,806,100 26,806,100
Regional Arterials 58,574,500 - - 23,115,400 81,689,900
Motorist Assistance - - - 10,196,500 10,196,500
Toll Operations - - - 157,784,000 157,784,000
Assigned:
Management Services - - - 4,826,400 4,826,400
TOTAL Fund Balance 242,819,800$ 44,885,700$ -$ 570,659,200$ 858,364,700$
Measure A Sales Tax
Chart 8 illustrates the actual and projected trends in fund balances for each governmental and
enterprise fund type from FY 2018/19 through FY 2021/22.
28
Chart 8 – Projected Fund Balance Trends by Fund Type FY 2019 – 2022
$5,000,000
$105,000,000
$205,000,000
$305,000,000
$405,000,000
$505,000,000
$605,000,000
$705,000,000
$805,000,000
General Fund Special Revenue
Funds
Capital Projects
Funds
Debt Service Fund Enterprise Fund
FY 18/19
FY 19/20
FY 20/21
FY 21/22
Budget Summary
The overall budget for FY 2021/22 is presented in Table 18 by summarized line items, Table 19 by
operating and capital classifications, and Table 20 by fund type. Highway, regional arterial, rail, and
regional conservation program projects expenditures are summarized in Table 21.
29
Table 18 – Budget Comparative by Summarized Line Item FY 2020—2022
FY 19/20 FY 20/21 FY 20/21 FY 21/22 Dollar Percent
Actual Revised Budget Projected Budget Change Change
Revenues
Measure A Sales Tax 195,036,300$ 195,000,000$ 195,000,000$ 195,000,000$ -$ 0%
LTF Sales Tax 100,283,600 100,000,000 100,000,000 100,000,000 - 0%
STA Sales Tax 27,796,500 28,915,700 19,015,100 23,862,200 (5,053,500) -17%
Federal Reimbursements 34,120,400 103,535,700 71,624,500 107,431,400 3,895,700 4%
State Reimbursements 109,840,500 149,063,600 140,552,600 210,931,000 61,867,400 42%
Local Reimbursements 3,659,100 20,716,100 14,930,600 20,391,500 (324,600) -2%
TUMF Revenue 23,257,900 15,500,000 11,000,000 11,000,000 (4,500,000) -29%
Tolls, Penalties, and Fees 56,434,000 31,718,600 44,545,700 65,123,700 33,405,100 105%
Other Revenue 566,600 549,100 582,400 657,300 108,200 20%
Investment Income 18,491,600 3,545,500 6,462,500 860,000 (2,685,500) -76%
TOTAL Revenues 569,486,500 648,544,300 603,713,400 735,257,100 86,712,800 13%
Expenditures/Expenses
Personnel Salaries and Benefits 18,190,100 13,146,000 13,035,100 15,005,000 1,859,000 14%
Professional and Support
Professional Services 10,409,400 20,872,400 12,744,800 19,265,800 (1,606,600) -8%
Support Costs 8,899,600 16,110,400 10,444,900 16,957,000 846,600 5%
TOTAL Professional and Support Costs 19,309,000 36,982,800 23,189,700 36,222,800 (760,000) -2%
Projects and Operations
Program Operations 22,888,500 39,249,300 31,794,400 41,120,600 1,871,300 5%
Engineering 10,969,300 30,450,200 17,366,100 26,462,300 (3,987,900) -13%
Construction 74,650,500 206,182,700 132,862,700 266,474,600 60,291,900 29%
Design Build 143,977,800 100,615,600 60,650,100 97,959,000 (2,656,600) -3%
Right of Way/Land 52,766,300 57,738,700 32,227,600 67,546,600 9,807,900 17%
Operating and Capital Disbursements 125,896,800 138,032,200 88,120,300 174,960,400 36,928,200 27%
Special Studies 482,900 1,403,000 150,000 2,021,000 618,000 44%
Local Streets and Roads 58,983,400 59,152,100 59,152,100 59,138,400 (13,700) 0%
Regional Arterials 14,544,800 33,753,000 30,000,000 30,000,000 (3,753,000) -11%
TOTAL Projects and Operations 505,160,300 666,576,800 452,323,300 765,682,900 99,106,100 15%
Debt Service
Principal Payments 27,253,700 28,495,000 28,495,000 518,386,600 489,891,600 1719%
Interest Payments 49,631,300 48,143,900 48,453,600 60,335,600 12,191,700 25%
Cost of Issuance - - - 2,883,400 2,883,400 N/A
TOTAL Debt Service 76,885,000 76,638,900 76,948,600 581,605,600 504,966,700 659%
Capital Outlay 4,214,700 6,082,600 4,212,600 6,359,700 277,100 5%
TOTAL Expenditures/Expenses 623,759,100 799,427,100 569,709,300 1,404,876,000 605,448,900 76%
Excess (deficiency) of Revenues over
(under) Expenditures/Expenses (54,272,600) (150,882,800) 34,004,100 (669,618,900) (518,736,100) 344%
Other Financing Sources (Uses)
Transfers In 146,618,000 179,922,600 152,650,800 196,240,000 16,317,400 9%
Transfers Out (146,618,000) (179,922,600) (152,650,800) (196,240,000) (16,317,400) 9%
Debt Proceeds - - - 627,600,000 627,600,000 N/A
TIFIA Loan Proceeds 111,301,900 47,371,900 15,661,000 6,919,000 (40,452,900) -85%
Bond Premium - - - 39,978,000 39,978,000 N/A
Payment to Escrow Agent - - - (147,488,000) (147,488,000) N/A
Net Financing Sources (Uses)111,301,900 47,371,900 15,661,000 527,009,000 479,637,100 1012%
Excess (deficiency) of Revenues over
(under) Expenditures/Expenses and Other
Financing Sources (Uses)57,029,300 (103,510,900) 49,665,100 (142,609,900) (39,099,000) 38%
Beginning Fund Balance 894,280,200 951,309,500 951,309,500 1,000,974,600 49,665,100 5%
ENDING FUND BALANCE 951,309,500$ 847,798,600$ 1,000,974,600$ 858,364,700$ 10,566,100$ 1%
30
Table 19 – Operating and Capital Budget FY 2021/22
FY 21/22 FY 21/22 FY 21/22
Operating Budget Capital Budget TOTAL Budget
Revenues
Measure A Sales Tax 26,945,000$ 168,055,000$ 195,000,000$
LTF Sales Tax 100,000,000 - 100,000,000
STA Sales Tax 23,862,200 - 23,862,200
Federal Reimbursements 18,343,600 89,087,800 107,431,400
State Reimbursements 8,493,500 202,437,500 210,931,000
Local Reimbursements 8,266,500 12,125,000 20,391,500
TUMF Revenue - 11,000,000 11,000,000
Tolls, Penalties, and Fees - 65,123,700 65,123,700
Other Revenue - 657,300 657,300
Investment Income 333,500 526,500 860,000
TOTAL Revenues 186,244,300 549,012,800 735,257,100
Expenditures/Expenses
Personnel Salaries and Benefits 10,292,100 4,712,900 15,005,000
Professional and Support
Professional Services 9,667,500 9,598,300 19,265,800
Support Costs 6,702,900 10,254,100 16,957,000
TOTAL Professional and Support Costs 16,370,400 19,852,400 36,222,800
Projects and Operations
Program Operations 12,491,300 28,629,300 41,120,600
Engineering - 26,462,300 26,462,300
Construction 1,711,000 264,763,600 266,474,600
Design Build - 97,959,000 97,959,000
Right of Way and Land 6,546,100 61,000,500 67,546,600
Operating and Capital Disbursements 174,060,400 900,000 174,960,400
Special Studies 2,021,000 - 2,021,000
Local Streets and Roads - 59,138,400 59,138,400
Regional Arterials - 30,000,000 30,000,000
T OTAL Projects and Operations 196,829,800 568,853,100 765,682,900
Debt Service
Principal Payments - 518,386,600 518,386,600
Interest Payments - 60,335,600 60,335,600
Cost of Issuance - 2,883,400 2,883,400
TOTAL Debt Service - 581,605,600 581,605,600
Capital Outlay 1,410,000 4,949,700 6,359,700
TOTAL Expenditures/Expenses 224,902,300 1,179,973,700 1,404,876,000
Excess (deficiency) of Revenues over
(under) Expenditures/Expenses (38,658,000) (630,960,900) (669,618,900)
Other Financing Sources (Uses)
Transfers In 27,480,500 168,759,500 196,240,000
Transfers Out (34,983,300) (161,256,700) (196,240,000)
Debt Proceeds - 627,600,000 627,600,000
TIFIA Loan Proceeds - 6,919,000 6,919,000
Bond Premium (187,466,000) 39,978,000 (147,488,000)
Payment to Escrow Agent 187,466,000 (147,488,000) 39,978,000
Net Financing Sources (Uses)(7,502,800) 534,511,800 527,009,000
Excess (deficiency) of Revenues over
(under) Expenditures/Expenses and Other
Financing Sources (Uses)(46,160,800) (96,449,100) (142,609,900)
Beginning Fund Balance 366,148,300 634,826,300 1,000,974,600
ENDING FUND BALANCE 319,987,500$ 538,377,200$ 858,364,700$
31
Table 20 – Budget by Fund Type FY 2021/22
FY 21/22
General Fund Special Revenue Capital Projects Debt Service Enterprise TOTAL Budget
Revenues
Measure A Sales Tax -$ 195,000,000$ -$ -$ -$ 195,000,000$
LTF Sales Tax - 100,000,000 - - - 100,000,000
STA Sales Tax - 23,862,200 - - - 23,862,200
Federal Reimbursements 15,700,000 88,922,300 - 2,809,100 - 107,431,400
State Reimbursements 3,004,500 207,926,500 - - - 210,931,000
Local Reimbursements 312,300 19,238,400 - - 840,800 20,391,500
TUMF Revenue - 11,000,000 - - - 11,000,000
Tolls, Penalties, and Fees - - - - 65,123,700 65,123,700
Other Revenue - 559,300 - - 98,000 657,300
Investment Income 17,500 612,800 60,300 11,700 157,700 860,000
TOTAL Revenues 19,034,300 647,121,500 60,300 2,820,800 66,220,200 735,257,100
Expenditures/Expenses
Personnel Salaries and Benefits 5,875,300 7,580,500 - - 1,549,200 15,005,000
Professional and Support
Professional Services 5,839,500 8,434,300 - - 4,992,000 19,265,800
Support Costs 3,087,200 5,094,300 - - 8,775,500 16,957,000
TOTAL Professional and Support Costs 8,926,700 13,528,600 - - 13,767,500 36,222,800
Projects and Operations
Program Operations - 19,509,100 - - 21,611,500 41,120,600
Engineering - 26,312,300 - - 150,000 26,462,300
Construction 1,711,000 254,980,600 - - 9,783,000 266,474,600
Design Build - 94,399,000 - - 3,560,000 97,959,000
Right of Way/Land - 67,546,600 - - - 67,546,600
Operating and Capital Disbursements 30,650,000 144,310,400 - - - 174,960,400
Special Studies 2,021,000 - - - - 2,021,000
Local Streets and Roads - 59,138,400 - - - 59,138,400
Regional Arterials - 30,000,000 - - - 30,000,000
TOTAL Projects and Operations 34,382,000 696,196,400 - - 35,104,500 765,682,900
Debt Service
Principal Payments - - - 29,995,000 488,391,600 518,386,600
Interest Payments - - 443,400 39,599,300 20,292,900 60,335,600
Cost of Issuance - - - - 2,883,400 2,883,400
TOTAL Debt Service - - 443,400 69,594,300 511,567,900 581,605,600
Capital Outlay 1,230,000 4,949,700 - - 180,000 6,359,700
TOTAL Expenditures/Expenses 50,414,000 722,255,200 443,400 69,594,300 562,169,100 1,404,876,000
Excess (deficiency) of Revenues over
(under) Expenditures/Expenses (31,379,700) (75,133,700) (383,100) (66,773,500) (495,948,900) (669,618,900)
Other Financing Sources (Uses)
Transfers In 24,671,200 101,974,500 - 69,594,300 - 196,240,000
Transfers Out (1,613,300) (155,387,600) (16,241,900) (2,809,100) (20,188,100) (196,240,000)
Debt Proceeds - - - - 627,600,000 627,600,000
TIFIA Loan Proceeds - 6,919,000 - - - 6,919,000
Bond Premium - - - - 39,978,000 39,978,000
Payment to Escrow Agent - - - - (147,488,000) (147,488,000)
Net Financing Sources (Uses)23,057,900 (46,494,100) (16,241,900) 66,785,200 499,901,900 527,009,000
Excess (deficiency) of Revenues over
(under) Expenditures/Expenses and Other
Financing Sources (Uses)(8,321,800) (121,627,800) (16,625,000) 11,700 3,953,000 (142,609,900)
Beginning Fund Balance 23,356,800 735,068,300 77,037,000 11,681,500 153,831,000 1,000,974,600
ENDING FUND BALANCE 15,035,000$ 613,440,500$ 60,412,000$ 11,693,200$ 157,784,000$ 858,364,700$
32
Table 21 – Highway, Regional Arterial, Rail, and Regional Conservation Program Projects FY 2021/22
Description
HIGHWAY ENGINEERING
71/91 Connector 1,380,000$
91 Express Lanes 150,000
I-15 Express Lanes―Southern Extension 6,500,000
I-15 Corridor Operations Project 4,300,000
Mid County Parkway (MCP)155,000
MCP I-215/Placentia Avenue Interchange 211,000
MCP Sweeney mitigation 10,000
MCP construction contract package 4,000,000
Riverside County-Santa Ana River Trail (details presented in Sections 5.2 Planning and Programming and 5.3 Capital Projects)1,821,000
SR-74 corridor ― Ethanac Road 1,041,800
SR-79 realignment 125,000
SR-60 Truck Lanes 50,000
General (details presented in Section 5.3 Capital Projects)3,050,000
SUBTOTAL HIGHWAY ENGINEERING 22,793,800
REGIONAL ARTERIAL ENGINEERING
I-15/Railroad Canyon Interchange 195,500
I-10/Highland Springs Avenue Interchange 1,158,000
SUBTOTAL REGIONAL ARTERIAL ENGINEERING 1,353,500
RAIL ENGINEERING
Moreno Valley March Field station upgrade 200,000
Riverside layover facility 115,000
Riverside Downtown station track and platform 2,000,000
SUBTOTAL RAIL ENGINEERING 2,315,000
TOTAL HIGHWAY, REGIONAL ARTERIAL, AND RAIL ENGINEERING 26,462,300$
HIGHWAY CONSTRUCTION
15/91 Express Lanes Connector 4,840,000$
71/91 Connector 5,739,000
91 Corridor Operations Project 16,049,000
91 Project 1,471,000
91 Express Lanes 9,783,000
Hamner Bridge widening 26,238,500
I-15 Express Lanes 9,591,000
I-15/Limonite Interchange 10,000
Jurupa Avenue grade separation 38,000,000
MCP I-215/Placentia Avenue Interchange 22,295,600
McKinley Avenue grade separation 51,000,000
Pachappa Underpass 6,129,000
SR-60 Truck Lanes 45,000,000
General (details presented in Section 5.2 Planning and Programming)311,000
General (details presented in Section 5.3 Capital Projects)45,000
SUBTOTAL HIGHWAY CONSTRUCTION 236,502,100
REGIONAL ARTERIAL CONSTRUCTION
I-15/Railroad Canyon Interchange 12,900,000
Various Western County MARA and TUMF regional arterial projects 5,557,500
SUBTOTAL REGIONAL ARTERIAL CONSTRUCTION 18,457,500
RAIL CONSTRUCTION
Moreno Valley-March Field station upgrade 9,815,000
Riverside layover facility 300,000
Other Riverside Downtown station mobility improvements (costs and details presented in Section 5.2 Rail)1,400,000
SUBTOTAL RAIL CONSTRUCTION 11,515,000
TOTAL HIGHWAY, REGIONAL ARTERIAL, AND RAIL CONSTRUCTION 266,474,600$
33
Description
HIGHWAY DESIGN BUILD
15/91 Express Lanes Connector 85,697,000$
91 Corridor Operations Project 201,000
91 Express Lanes 3,560,000
91 Project 978,000
I-15 Express Lanes Project 7,323,000
I-15 Express Lanes - Northern Segment 200,000
TOTAL HIGHWAY DESIGN BUILD 97,959,000$
HIGHWAY RIGHT OF WAY AND LAND
60/215 East Junction high occupancy vehicle (HOV) lane connectors 5,000$
71/91 Connector 1,150,000
91 Project 12,420,000
91 Corridor Operations Project 146,000
Jurupa Avenue grade separation 2,000,000
MCP 8,300,000
MCP I-215/Placentia Avenue Interchange 28,275,000
SR-60 Truck Lanes 120,000
Pachappa Underpass 110,000
Riverside County-Santa Ana River Trail (details presented in Sections 5.2 Planning and Programming and 5.3 Capital Projects)155,000
SR-74/I-15 to 7th Street 5,000
SR-91 HOV lanes/Adams Street to 60/91/215 interchange 15,000
General (details presented in Section 5.3 Capital Projects)676,100
SUBTOTAL HIGHWAY RIGHT OF WAY AND LAND 53,377,100
REGIONAL ARTERIAL RIGHT OF WAY AND LAND
I-15/Railroad Canyon Interchange 30,000
I-10/Highland Springs Avenue Interchange 10,000
Various Western County MARA and TUMF regional arterial projects 11,045,000
SUBTOTAL REGIONAL ARTERIAL RIGHT OF WAY AND LAND 11,085,000
RAIL RIGHT OF WAY AND LAND
Riverside layover facility 2,000
Riverside Downtown station track and platform 2,400,000
Moreno Valley - March Field rail upgrades 30,000
General 152,500
SUBTOTAL RAIL RIGHT OF WAY AND LAND 2,584,500
REGIONAL CONSERVATION RIGHT OF WAY AND LAND
Regional Conservation acquisition consultant costs 500,000
TOTAL HIGHWAY, REGIONAL ARTERIAL, RAIL, AND REGIONAL CONSERVATION RIGHT OF WAY AND LAND 67,546,600$
GRAND TOTAL HIGHWAY, REGIONAL ARTERIAL, RAIL, AND REGIONAL CONSERVATION PROGRAMS 458,442,500$
34
PROPOSED BUDGET
FISCAL YEAR 2021/22
Michele Cisneros, Deputy Director of Finance
Theresia Trevino, Chief Financial Officer 1
BUDGET PROCESS
2
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 2021/22 BUDGET CONSIDERATIONS
3
Sales tax and TUMF revenues
•Use of Measure A and TUMF revenues for project expenditures
•Use of LTF/STA revenues for transit operations and capital needs
•Stronger than expected sales taxes during pandemic
RCTC projects and programs
•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
Financing needs and related costs
•Final TIFIA loan drawdown on the I-15 Express Lanes project
•Resume refinancing of 91 Express Lanes toll debt
BUDGET SUMMARY
4
FY 2021/22
Beginning Fund Balance (7/1/2021)1,000,974,600$
Revenues 735,257,100
Debt Proceeds 674,497,000
Transfers In 196,240,000
Total Estimated Sources 1,605,994,100
Expenditures/Expenses (823,270,400)
Debt Service (729,093,600)
Transfers Out (196,240,000)
Total Estimated Uses (1,748,604,000)
Uses Over Sources (offset by beginning fund balance)(142,609,900)
Ending Fund Balance (6/30/2022)858,364,700$
REVENUES/SOURCES BREAKDOWN
5
FY 2020/21 FY 2020/21 FY 2021/22
Revised Budget Projected Budget
Measure A Sales Tax 195,000,000$ 195,000,000$ 195,000,000$
LTF Sales Tax 100,000,000 100,000,000 100,000,000
STA Sales Tax 28,915,700 19,015,100 23,862,200
Intergovernmental 273,315,400 227,107,700 338,753,900
TUMF Revenue 15,500,000 11,000,000 11,000,000
Tolls, Penalties, and Fees 31,718,600 44,545,700 65,123,700
Other Revenue 549,100 582,400 657,300
Investment Income 3,545,500 6,462,500 860,000
Transfers In 179,922,600 152,650,800 196,240,000
Debt Proceeds 47,371,900 15,661,000 674,497,000
TOTAL Sources 875,838,800$ 772,025,200$ 1,605,994,100$
REVENUES/SOURCES COMPARISON
6
$-
$100
$200
$300
$400
$500
$600
$700
$800
Mi
l
l
i
o
n
s
FY 2020/21 Revised Budget
FY 2020/21 Projected
FY 2021/22 Budget
EXPENDITURES/EXPENSES BY DEPARTMENT
7
FY 2020/21 FY 2020/21 FY 2021/22
Revised Budget Projected Budget
Capital Highway, Rail, and Regional Arterials 586,548,100$ 408,752,400$ 633,370,100$
Capital Local Streets and Roads 59,152,100 59,152,100 59,138,400
Commuter Assistance 5,333,900 3,356,500 4,785,600
Debt Service 76,638,900 76,948,600 729,093,600
Management Services 22,052,600 19,789,600 22,423,000
Motorist Assistance 8,994,900 6,981,800 9,096,100
Planning and Programming 8,202,700 5,020,000 8,121,100
Public and Specialized Transit 123,932,200 74,284,200 164,063,200
Rail Maintenance and Operations 51,199,500 40,245,500 42,153,100
Regional Conservation 2,050,000 2,030,300 5,570,500
Toll Operations 35,244,800 25,799,100 70,789,300
TOTAL Expenditures/Expenses 979,349,700$ 722,360,100$ 1,748,604,000$
EXPENDITURES/EXPENSES COMPARISON
8
$-
$50
$100
$150
$200
$250
$300
$350
$400
$450
$500
$550
$600
$650
$700
$750
Mi
l
l
i
o
n
s
FY 2020/21 Revised Budget
FY 2020/21 Projected
FY 2021/22 Budget
CAPITAL DEVELOPMENT AND DELIVERY DEPARTMENT HIGHLIGHTS
9
15/91 Express Lanes Connector
I-15 Express Lanes
91 Corridor Operations Project
91 Project close out
Mid County Parkway
60 Truck Lanes
EXPENDITURES/EXPENSES BY FUNCTION
10
FY 2020/21 FY 2020/21 FY 2021/22 Percent
Revised Budget Projected Budget Change
Salaries and Benefits 13,146,000$ 13,035,100$ 15,005,000$ 14%
Professional Services 20,872,400 12,744,800 19,265,800 -8%
Support Costs 16,110,400 10,444,900 16,957,000 5%
Projects and Operations 666,576,800 452,323,300 765,682,900 15%
Debt Service 76,638,900 76,948,600 729,093,600 851%
Capital Outlay 6,082,600 4,212,600 6,359,700 5%
TOTAL Expenditures/Expenses 799,427,100$ 569,709,300$ 1,552,364,000$ 94%
*Excludes transfers out
EXPENDITURES/EXPENSES BY FUNCTION COMPARISON
11
$-
$100
$200
$300
$400
$500
$600
$700
$800
Salaries and Benefits Professional Services Support Costs Projects and
Operations
Debt Service Capital Outlay
Mil
l
i
o
n
s
*Excludes transfers out
FY 2020/21 Revised Budget
FY 2020/21 Projected
FY 2021/22 Budget
NEXT STEPS
12
Close public hearing and adopt budget June 9, 2021
Review the final budget draft, close the public hearing, and adopt the final budget
Open public hearing May 12, 2021
Receive input on the proposed budget and open the public hearing
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 8
Agenda Item 8
RIVERSIDE COUNTY TRANSPORTATION COMMISSION
DATE: April 26, 2021
TO: Budget and Implementation Committee
FROM: Theresia Trevino, Chief Financial Officer
THROUGH: Anne Mayer, Executive Director
SUBJECT: Agreements for Audit and Attestation Services
STAFF RECOMMENDATION:
This item is for the Committee to:
1) Award the following agreements to provide audit and attestation services for the Western
Riverside County Measure A recipients and Transportation Development Act (TDA)
claimants of the Commission and the member agencies of the Western Riverside County
Regional Conservation Authority (RCA) for a three-year term, with three one-year options
to extend the agreements in the total aggregate amount of $1,524,661, plus a
contingency amount of $75,339, for a total aggregate amount not to exceed $1,600,000:
a) Agreement No. 21-19-034-00 to BCA Watson Rice LLP;
b) Agreement No. 21-19-035-00 to Brown Armstrong Accountancy Corporation
(Brown Armstrong);
c) Agreement No. 21-19-036-00 to Conrad LLP; and
d) Agreement No. 21-19-037-00 to Eide Bailly LLP;
2) Award the following agreements to provide audit and attestation services for the Eastern
Riverside County Measure A Recipients and Transportation Development Act Claimants
of the Commission for a three-year term, with three one-year options to extend the
agreements in the total aggregate amount of $413,160, plus a contingency amount of
$19,840, for a total aggregate amount not to exceed $433,000:
a) Agreement No. 21-19-056-00 to Brown Armstrong; and
b) Agreement No. 21-19-057-00 to Conrad LLP;
3) Authorize the Chair or Executive Director, pursuant to legal counsel review, to finalize and
execute the agreements, including options years, on behalf of the Commission;
4) Authorize the Executive Director or designee to approve contingency work up to the total
not to exceed amount as required for these audit and attestation services; and
5) Forward to the Commission for final action.
BACKGROUND INFORMATION:
The TDA requires annual financial and compliance audits of TDA claimants in the county receiving
allocations for bicycle and pedestrian projects and public transit, and the 2009 Measure A
requires audits of the city and county recipients of local streets and roads funds. The Commission
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Agenda Item 8
also obtains audits of Western County Measure A specialized transit recipients in order to
determine compliance with grant agreements. Beginning with FY 2006/07, the Commission
elected to develop specific agreed-upon procedures to be performed by the auditors in order to
more effectively evaluate whether the Measure A recipients complied with the local streets and
roads and specialized transit requirements. Such agreed-upon procedures have been periodically
revised in response to prior year findings, areas of concern, and changes in Measure A
requirements and related implementation guidance.
The Commission periodically procures multiple audit firms to perform the TDA financial and
compliance audits and the Measure A agreed-upon procedures attestation services for the TDA
claimants and Measure A recipients. This is a significant scope of work that exceeds 2,000 hours
annually, is performed at multiple locations, and results in numerous reports issued. TDA
requires reports by December 31, although a 90-day extension can be granted by the
Commission. There is no statutory Measure A reporting deadline; however, the Commission uses
the TDA deadline. In order to ensure timely completion of the required work, Commission staff
believes that the benefits of engaging multiple audit firms exceeds assigning all the work to a
single firm. Riverside Transit Agency and SunLine Transit Agency elected to procure their audits
and submit the final reports to the Commission and are not included in the scope of services for
such procurements.
In May 2016, the Commission approved the selection of BCA Watson Rice LLP and Macias Gini &
O’Connell LLP to perform audit services, including agreed-upon procedures, for the Measure A
recipients and TDA claimants in the Western County and Conrad LLP to perform similar services
in Eastern County (Coachella Valley and Palo Verde Valley) for an initial three-year term and two
additional one-year option periods. These three contracts terminate with the completion of the
FY 2019/20 services.
In January the Commission began to serve as the management agency for the RCA following
November 2020 approvals by the Commission and the RCA Board of Directors of the
implementation and management services agreement. Under this agreement, the RCA and the
Commission desired to seek efficiencies by consolidating professional services agreements as
much as possible. The RCA engaged Brown Armstrong to perform agreed-upon procedures
related to the collection and remittance of mitigation fees in accordance with each member
agency’s Multiple Species Habitat Conservation Plan (MSHCP) Fee ordinance. The member
agencies consist of the 18 Western Riverside County cities and the County of Riverside. One
option year remains under the RCA’s agreement with Brown Armstrong.
DISCUSSION:
In connection with the planning for the procurement of the Commission’s TDA audit and Measure
A attestation services, staff determined that the MSHCP attestation services should be
incorporated into the Commission’s procurement. Staff anticipates efficiencies for the
Commission and RCA related to the planning and oversight of the services as well as for the TDA
claimants, Measure A recipients, and MSHCP member agencies through assignment of services
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Agenda Item 8
that minimize disruptions to local jurisdictions and agencies. Due to the volume of work to be
performed and the number of reports to be issued, staff intends to assign the required services
among multiple firms to ensure the timely completion of the audits and attestation services.
Procurement Process
Staff determined the weighted factor method of source selection to be the most appropriate for
these procurements, as it allows the Commission to identify the most advantageous proposals
with price and other factors considered. Non-price factors include elements such as
qualifications of firm and personnel and understanding and approach for audit and attestation
services as set forth under the terms of Request for Proposals (RFP) No. 21-19-034-WC and RFP
No. 21-19-034-EC.
RFP No. 21-19-034-WC and RFP No. 21-19-034-EC for audit and attestation services were
released by staff on February 18, 2021. RFP No. 21-19-034-WC was for audit and attestation
services for the Western Riverside County Measure A recipients and TDA claimants of the
Commission and the member agencies of the RCA. RFP No. 21-19-034-EC was for audit and
attestation services for the Eastern Riverside County Measure A recipients and TDA claimants of
the Commission. Both RFPs were posted on the Commission’s PlanetBids website, which is
accessible through the Commission’s website. Utilizing PlanetBids, emails were sent to 335 firms
for each RFP, 47 of which are located in Riverside County. Staff responded to all questions
submitted by potential proposers for each RFP prior to the March 1 clarification deadline date.
Nine firms – BCA Watson Rice LLP (Torrance), Brown Armstrong (Bakersfield), Conrad LLP (Lake
Forest), Davis Farr LLP (Irvine), Eadie and Payne LLP (Riverside), Eide Bailly LLP (Riverside), Lance,
Soll & Lunghard LLP (Brea), Macias Gini & O’Connell LLP (Irvine), and Vasquez & Company LLP
(Glendale) – submitted responsive proposals prior to the 2:00 p.m. submittal deadline on March
18 for RFP No. 21-19-034-WC. Eight firms – BCA Watson Rice LLP (Torrance), Brown Armstrong
(Bakersfield), Conrad LLP (Lake Forest), Davis Farr LLP (Irvine), Eadie and Payne LLP (Riverside),
Lance, Soll & Lunghard LLP (Brea), Macias Gini & O’Connell LLP (Irvine), and Vasquez & Company
LLP (Glendale) – submitted responsive proposals prior to the 2:00 p.m. submittal deadline on
March 18 for RFP No. 21-19-034-EC.
Utilizing the evaluation criteria set forth in the RFPs, all firms were evaluated and scored by an
evaluation committee comprised of Commission staff. The total evaluation score rankings for
each RFP following the final evaluation are summarized below:
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Agenda Item 8
RFP No. 21-19-034-WC
Audit Firm Total Evaluation Score Rank
Brown Armstrong 1
Eide Bailly 2
Conrad 3
BCA Watson Rice 4
Eadie and Payne 5
Vasquez & Company 6
Macias Gini O’Connell 7
Lance, Soll & Lunghard 8
Davis Farr 9
RFP No. 21-19-034-EC
Audit Firm Total Evaluation Score Rank
Conrad 1
Brown Armstrong 2
Vasquez & Company 3
BCA Watson Rice 4
Eadie and Payne 5
Macias Gini O’Connell 6
Davis Farr 7
Lance, Soll & Lunghard 8
Based on the evaluation committee’s assessment of the written proposals and pursuant to the
terms of the RFPs, the evaluation committee recommends contract awards to BCA Watson Rice
LLP, Brown Armstrong, Conrad LLP, and Eide Bailly LLP to perform audit and attestation services
for Western Riverside County for a three-year term, with three one-year options to extend the
agreements, as these firms earned the highest total evaluation scores under RFP
No. 21-19-034-WC. Additionally, the evaluation committee recommends contract awards to
Brown Armstrong and Conrad LLP to perform audit and attestation services for Eastern Riverside
County for a three-year term, with three one-year options to extend the agreements, as these
firms earned the highest total evaluation scores under RFP No. 21-19-034-EC.
Assignment of Services
Following the evaluation committee’s recommendations for award, staff assigned the required
services and determined the costs for such services based on the pricing submitted with each
proposal. The assignments by RFP and costs for the initial three-year term and three one-year
options to extend are summarized below:
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Agenda Item 8
RFP No.
21-19-034-WC
BCA Watson
Rice
Brown
Armstrong Conrad Eide Bailly
Banning X
Beaumont X
Calimesa X
Canyon Lake X
Corona X
Eastvale X
Hemet X
Jurupa Valley X
Lake Elsinore X
Menifee X
Moreno Valley X
Murrieta X
Norco X
Perris X
Riverside X
San Jacinto X
Temecula X
Wildomar X
County of Riverside X
Specialized Transit
recipients
(estimated 13-15)
X
Cost $373,847 $622,077 $103,760 $424,977
RFP No. 21-19-034-EC Brown Armstrong Conrad
Cathedral City X
Coachella X
Desert Hot Springs X
Indian Wells X
Indio X
La Quinta X
Palm Desert X
Palm Springs X
Rancho Mirage X
Blythe X
Palo Verde Valley Transit
Agency X
Cost $38,400 $374,760
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Agenda Item 8
Staff provided each recommended firm with the proposed assignments and costs, as derived
from the respective firm’s written proposal submitted. Each firm accepted the assignments and
confirmed the costs.
Accordingly, staff recommends the award of the four agreements for audit and attestation
services for Western Riverside County for a three-year term, with three one-year options to
extend the agreements for a total aggregate amount not to exceed $1.6 million, including a
$75,339 contingency for additional audits or attestation services or for unforeseen additional
services. Staff also recommends the award of the two agreements for audit and attestation
services for Eastern Riverside County for a three-year term, with three one-year options to
extend the agreements for a total aggregate amount not to exceed $433,000, including a $19,840
contingency for additional audits or attestation services or for unforeseen additional services.
The total aggregate value for the six agreements is $2,033,000.
Cost Contingency Total Cost
RFP 21-19-034-WC $ 1,524,661 $ 75,339 $1,600,000
RFP 21-19-034-EC 413,160 19,840 433,000
Total $1,937,821 $ 95,179 $2,033,000
The Commission’s standard form professional services agreements will be entered into with each
firm subject to any changes approved by the Executive Director, pursuant to legal counsel review.
Staff also recommends authorization for the Chair or Executive Director to execute the
agreements, including option years, and for the Executive Director or designee to approve
contingency work as required for these audit services. Staff oversight of the contracts will be
conducted to maximize the effectiveness of the consultants and to minimize costs to the
Commission.
Financial Information
In Fiscal Year Budget: Yes
N/A Year: FY 2021/22
FY 2022/23+ Amount: $338,000
$1,695,000
Source of Funds: 2009 Measure A, Local Transportation
Funds, RCA reimbursements Budget Adjustment: No
N/A
GL/Project Accounting No.: 001001 65401 00000 0002 101 19 65401
r11001 65401 00000 0000 750 68 65401
Fiscal Procedures Approved: Date: 04/14/2021
Attachments:
1) Draft Agreement No. 21-19-034-00 to BCA Watson Rice LLP
2) Draft Agreement No. 21-19-035-00 to Brown Armstrong
3) Draft Agreement No. 21-19-036-00 to Conrad LLP
4) Draft Agreement No. 21-19-037-00 to Eide Bailly LLP
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Agenda Item 8
5) Draft Agreement No. 21-19-056-00 to Brown Armstrong
6) Draft Agreement No. 21-19-057-00 to Conrad LLP
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Agreement No. 21-19-034-00
RIVERSIDE COUNTY TRANSPORTATION COMMISSION
AGREEMENT FOR AUDIT AND ATTESTATION SERVICES
FOR THE WESTERN RIVERSIDE COUNTY
MEASURE A RECIPIENTS AND
TRANSPORTATION DEVELOPMENT ACT CLAIMANTS
OF THE
RIVERSIDE COUNTY TRANSPORTATION COMMISSION
AND THE MEMBER AGENCIES
OF THE
WESTERN RIVERSIDE COUNTY
REGIONAL CONSERVATION AUTHORITY
WITH BCA WATSON RICE LLP
1. PARTIES AND DATE.
This Agreement is made and entered into this day of , 2021, by and
between the RIVERSIDE COUNTY TRANSPORTATION COMMISSION ("the Co-
mmission") and BCA WATSON RICE LLP ("Consultant"), a Limited Liability Partnership.
2. RECITALS.
2.1 Consultant desires to perform and assume responsibility for the
provision of certain professional consulting services required by Commission on the terms
and conditions set forth in this Agreement. Consultant represents that it is a professional
consultant, experienced in providing audit services to public clients, is licensed in the
State of California, and is familiar with the plans of Commission.
2.2 Commission desires to engage Consultant to render certain audit
and attestation services for the Commission ("Project") as set forth herein.
3. TERMS.
3.1 General Scope of Services. Consultant promises and agrees to
furnish to Commission all labor materials, tools, equipment, services, and incidental and
customary work necessary to fully and adequately provide professional consulting
services and advice on various issues affecting the decisions of Commission regarding
the Project and on other programs and matters affecting Commission, hereinafter referred
to as "Services". The Services are more particularly described in Exhibit "A" attached
hereto and incorporated herein by reference. All Services shall be subject to, and
performed in accordance with, this Agreement, the exhibits attached hereto and
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incorporated herein by reference, and all applicable local, state, and federal laws, rules
and regulations.
3.2 Term. The term of this Agreement shall be from the date first
specified above to June 30, 2024, unless earlier terminated as provided herein. The
Commission, at its sole discretion, may extend this Agreement for three (3) additional
single year terms through June 30, 2027. Consultant shall complete the Services within
the term of this Agreement and shall meet any other established schedules and
deadlines.
3.3 Schedule of Services. Consultant shall perform the Services
expeditiously, within the term of this Agreement, and in accordance with the Audit
Schedule set forth in Exhibit "A" attached hereto and incorporated herein by reference.
Consultant represents that it has the professional and technical personnel required to
perform the Services in conformance with such conditions. In order to facilitate
Consultant's conformance with the Schedule, the Commission shall respond to
Consultant's submittals in a timely manner. Upon request of the Commission, Consultant
shall provide a more detailed schedule of anticipated performance to meet the Audit
Schedule.
3.4 Independent Contractor; Control and Payment of Subordinates. The
Services shall be performed by Consultant under its supervision. Consultant will
determine the means, method and details of performing the Services subject to the
requirements of this Agreement. Commission retains Consultant on an independent
contractor basis and Consultant is not an employee of Commission. Consultant retains
the right to perform similar or different services for others during the term of this
Agreement. Any additional personnel performing the Services under this Agreement on
behalf of Consultant shall not be employees of Commission and shall at all times be under
Consultant's exclusive direction and control. Consultant shall pay all wages, salaries, and
other amounts due such personnel in connection with their performance of Services under
this Agreement and as required by law. Consultant shall be responsible for all reports
and obligations respecting such additional personnel, including, but not limited to: social
security taxes, income tax withholding, unemployment insurance, and workers'
compensation insurance.
3.5 Conformance to Applicable Requirements. All work prepared by
Consultant shall be subject to the approval of Commission.
3.6 Substitution of Key Personnel. Consultant has represented to
Commission that certain key personnel will perform and coordinate the Services under
this Agreement. Should one or more of such personnel become unavailable, Consultant
may substitute other personnel of at least equal competence and experience upon written
approval of Commission. In the event that Commission and Consultant cannot agree as
to the substitution of key personnel, Commission shall be entitled to terminate this
Agreement for cause, pursuant to provisions of Section 3.16 of this Agreement. The key
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personnel for performance of this Agreement are as follows: Michael de Castro, Helen
Chu, Rustico Cabilin, Ihab Fakhreddine, Lisa Reason, Julie Ta, Brandon de Castro.
3.7 Commission’s Representative. Commission hereby designates the
Chief Financial Officer, or his or her designee, to act as its representative for the
performance of this Agreement ("Commission’s Representative"). Commission's
representative shall have the power to act on behalf of Commission for all purposes under
this Agreement. Consultant shall not accept direction from any person other than
Commission's Representative or his or her designee.
3.8 Consultant’s Representative. Consultant hereby designates Michael
de Castro, or his or her designee, to act as its representative for the performance of this
Agreement ("Consultant’s Representative"). Consultant’s Representative shall have full
authority to represent and act on behalf of the Consultant for all purposes under this
Agreement. The Consultant’s Representative shall supervise and direct the Services,
using his or her best skill and attention, and shall be responsible for all means, methods,
techniques, sequences and procedures and for the satisfactory coordination of all
portions of the Services under this Agreement.
3.9 Coordination of Services. Consultant agrees to work closely with
Commission staff in the performance of Services and shall be available to Commission's
staff, consultants and other staff at all reasonable times.
3.10 Standard of Care; Licenses. Consultant shall perform the Services
under this Agreement in a skillful and competent manner, consistent with the standard
generally recognized as being employed by professionals in the same discipline in the
State of California. Consultant represents and maintains that it is skilled in the
professional calling necessary to perform the Services. Consultant warrants that all
employees and subcontractors shall have sufficient skill and experience to perform the
Services assigned to them. Finally, Consultant represents that it, its employees and
subcontractors have all licenses, permits, qualifications and approvals of whatever nature
that are legally required to perform the Services and that such licenses and approvals
shall be maintained throughout the term of this Agreement. Consultant shall perform, at
its own cost and expense and without reimbursement from Commission, any Services
necessary to correct errors or omissions which are caused by the Consultant’s failure to
comply with the standard of care provided for herein, and shall be fully responsible to the
Commission for all damages and other liabilities provided for in the indemnification
provisions of this Agreement arising from the Consultant’s errors and omissions.
3.11 Laws and Regulations. Consultant shall keep itself fully informed of
and in compliance with all local, state and federal laws, rules and regulations in any
manner affecting the performance of the Project or the Services, including all Cal/OSHA
requirements, and shall give all notices required by law. Consultant shall be liable for all
violations of such laws and regulations in connection with Services. If the Consultant
performs any work knowing it to be contrary to such laws, rules and regulations and
without giving written notice to Commission, Consultant shall be solely responsible for all
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costs arising therefrom. Consultant shall defend, indemnify and hold Commission, its
officials, directors, officers, employees and agents free and harmless, pursuant to the
indemnification provisions of this Agreement, from any claim or liability arising out of any
failure or alleged failure to comply with such laws, rules or regulations.
3.12 Insurance.
3.12.1 Time for Compliance. Consultant shall not commence work
under this Agreement until it has provided evidence satisfactory to the Commission that
it has secured all insurance required under this section, in a form and with insurance
companies acceptable to the Commission. In addition, Consultant shall not allow any
subcontractor to commence work on any subcontract until it has secured all insurance
required under this section.
3.12.2 Minimum Requirements. Consultant shall, at its expense,
procure and maintain for the duration of the Agreement insurance against claims for
injuries to persons or damages to property which may arise from or in connection with the
performance of the Agreement by the Consultant, its agents, representatives, employees
or subcontractors. Consultant shall also require all of its subcontractors to procure and
maintain the same insurance for the duration of the Agreement. Such insurance shall
meet at least the following minimum levels of coverage:
(A) Minimum Scope of Insurance. Coverage shall be at
least as broad as the latest version of the following: (1) General Liability: Insurance
Services Office Commercial General Liability coverage (occurrence form CG 0001 or
exact equivalent); (2) Automobile Liability: Insurance Services Office Business Auto
Coverage (form CA 0001, code 1 (any auto) or exact equivalent); and (3) Workers’
Compensation and Employer’s Liability: Workers’ Compensation insurance as required
by the State of California and Employer’s Liability Insurance.
(B) Minimum Limits of Insurance. Consultant shall
maintain limits no less than: (1) General Liability: $2,000,000 per occurrence for bodily
injury, personal injury and property damage. If Commercial General Liability Insurance
or other form with general aggregate limit is used, either the general aggregate limit shall
apply separately to this Agreement/location or the general aggregate limit shall be twice
the required occurrence limit; (2) Automobile Liability: $1,000,000 per accident for bodily
injury and property damage; and (3) if Consultant has an employees, Workers’
Compensation and Employer’s Liability: Workers’ Compensation limits as required by the
Labor Code of the State of California. Employer’s Practices Liability limits of $1,000,000
per accident.
3.12.3 Professional Liability. Consultant shall procure and maintain,
and require its sub-consultants to procure and maintain, for a period of five (5) years
following completion of the Project, errors and omissions liability insurance appropriate to
their profession. Such insurance shall be in an amount not less than $1,000,000 per
claim. This insurance shall be endorsed to include contractual liability applicable to this
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Agreement and shall be written on a policy form coverage specifically designed to protect
against acts, errors or omissions of the Consultant. “Covered Professional Services” as
designated in the policy must specifically include work performed under this Agreement.
The policy must “pay on behalf of” the insured and must include a provision establishing
the insurer's duty to defend.
3.12.4 Insurance Endorsements. The insurance policies shall
contain the following provisions, or Consultant shall provide endorsements on forms
approved by the Commission to add the following provisions to the insurance policies:
(A) General Liability.
(i) Commercial General Liability Insurance must
include coverage for (1) bodily injury and property damage; (2) personal Injury/Advertising
injury; (3) premises/operations liability; (4) products/completed operations liability; (5)
aggregate limits that apply per project; (6) explosion, collapse and underground (UCX)
exclusion deleted; (7) contractual liability with respect to this Agreement; (8) broad form
property damage; and (9) independent consultants coverage.
(ii) The policy shall contain no endorsements or
provisions limiting coverage for (1) contractual liability; (2) cross liability exclusion for
claims or suits by one insured against another; or (3) contain any other exclusion contrary
to this Agreement.
(iii) The policy shall give the Commission, its
directors, officials, officers, employees, and agents insured status using ISO endorsement
forms 20 10 10 01 and 20 37 10 01, or endorsements providing the exact same coverage.
(iv) The additional insured coverage under the
policy shall be “primary and non-contributory” and will not seek contribution from the
Commission’s insurance or self-insurance and shall be at least as broad as CG 20 01 04
13, or endorsements providing the exact same coverage.
(B) Automobile Liability. The automobile liability policy
shall be endorsed to state that: (1) the Commission, its directors, officials, officers,
employees and agents shall be covered as additional insureds with respect to the
ownership, operation, maintenance, use, loading or unloading of any auto owned, leased,
hired or borrowed by the Consultant or for which the Consultant is responsible; and (2)
the insurance coverage shall be primary insurance as respects the Commission, its
directors, officials, officers, employees and agents, or if excess, shall stand in an
unbroken chain of coverage excess of the Consultant’s scheduled underlying coverage.
Any insurance or self-insurance maintained by the Commission, its directors, officials,
officers, employees and agents shall be excess of the Consultant’s insurance and shall
not be called upon to contribute with it in any way.
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(C) Workers’ Compensation and Employers Liability
Coverage.
(i) Consultant certifies that he/she is aware of the
provisions of Section 3700 of the California Labor Code which requires every employer
to be insured against liability for workers’ compensation or to undertake self-insurance in
accordance with the provisions of that code, and he/she will comply with such provisions
before commencing work under this Agreement.
(ii) The insurer shall agree to waive all rights of
subrogation against the Commission, its directors, officials, officers, employees and
agents for losses paid under the terms of the insurance policy which arise from work
performed by the Consultant.
(D) All Coverages.
(i) Defense costs shall be payable in addition to the
limits set forth hereunder.
(ii) Requirements of specific coverage or limits
contained in this section are not intended as a limitation on coverage, limits, or other
requirement, or a waiver of any coverage normally provided by any insurance. It shall be
a requirement under this Agreement that any available insurance proceeds broader than
or in excess of the specified minimum insurance coverage requirements and/or limits set
forth herein shall be available to the Commission, its directors, officials, officers,
employees and agents as additional insureds under said policies. Furthermore, the
requirements for coverage and limits shall be (1) the minimum coverage and limits
specified in this Agreement; or (2) the broader coverage and maximum limits of coverage
of any insurance policy or proceeds available to the named insured; whichever is greater.
(iii) The limits of insurance required in this
Agreement may be satisfied by a combination of primary and umbrella or excess
insurance. Any umbrella or excess insurance shall contain or be endorsed to contain a
provision that such coverage shall also apply on a primary and non-contributory basis for
the benefit of the Commission (if agreed to in a written contract or agreement) before the
Commission’s own insurance or self-insurance shall be called upon to protect it as a
named insured. The umbrella/excess policy shall be provided on a “following form” basis
with coverage at least as broad as provided on the underlying policy(ies).
(iv) Consultant shall provide the Commission at
least thirty (30) days prior written notice of cancellation of any policy required by this
Agreement, except that the Consultant shall provide at least ten (10) days prior written
notice of cancellation of any such policy due to non-payment of premium. If any of the
required coverage is cancelled or expires during the term of this Agreement, the
Consultant shall deliver renewal certificate(s) including the General Liability Additional
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Insured Endorsement to the Commission at least ten (10) days prior to the effective date
of cancellation or expiration.
(v) The retroactive date (if any) of each policy is to
be no later than the effective date of this Agreement. Consultant shall maintain such
coverage continuously for a period of at least three years after the completion of the work
under this Agreement. Consultant shall purchase a one (1) year extended reporting
period A) if the retroactive date is advanced past the effective date of this Agreement; B)
if the policy is cancelled or not renewed; or C) if the policy is replaced by another claims-
made policy with a retroactive date subsequent to the effective date of this Agreement.
(vi) The foregoing requirements as to the types and
limits of insurance coverage to be maintained by Consultant, and any approval of said
insurance by the Commission, is not intended to and shall not in any manner limit or
qualify the liabilities and obligations otherwise assumed by the Consultant pursuant to
this Agreement, including but not limited to, the provisions concerning indemnification.
(vii) If at any time during the life of the Agreement,
any policy of insurance required under this Agreement does not comply with these
specifications or is canceled and not replaced, Commission has the right but not the duty
to obtain the insurance it deems necessary and any premium paid by Commission will be
promptly reimbursed by Consultant or Commission will withhold amounts sufficient to pay
premium from Consultant payments. In the alternative, Commission may cancel this
Agreement. The Commission may require the Consultant to provide complete copies of
all insurance policies in effect for the duration of the Project.
(viii) Neither the Commission nor any of its directors,
officials, officers, employees or agents shall be personally responsible for any liability
arising under or by virtue of this Agreement.
Each insurance policy required by this Agreement shall
be endorsed to state that:
3.12.5 Deductibles and Self-Insurance Retentions. Any deductibles
or self-insured retentions must be declared to and approved by the Commission. If the
Commission does not approve the deductibles or self-insured retentions as presented,
Consultant shall guarantee that, at the option of the Commission, either: (1) the insurer
shall reduce or eliminate such deductibles or self-insured retentions as respects the
Commission, its directors, officials, officers, employees and agents; or, (2) the Consultant
shall procure a bond guaranteeing payment of losses and related investigation costs,
claims and administrative and defense expenses.
3.12.6 Acceptability of Insurers. Insurance is to be placed with
insurers with a current A.M. Best’s rating no less than A:VIII, licensed to do business in
California, and satisfactory to the Commission.
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3.12.7 Verification of Coverage. Consultant shall furnish
Commission with original certificates of insurance and endorsements effecting coverage
required by this Agreement on forms satisfactory to the Commission. The certificates and
endorsements for each insurance policy shall be signed by a person authorized by that
insurer to bind coverage on its behalf. All certificates and endorsements must be received
and approved by the Commission before work commences. The Commission reserves
the right to require complete, certified copies of all required insurance policies, at any
time.
3.12.8 Subconsultant Insurance Requirements. Consultant shall not
allow any subcontractors or subconsultants to commence work on any subcontract until
they have provided evidence satisfactory to the Commission that they have secured all
insurance required under this section. Policies of commercial general liability insurance
provided by such subcontractors or subconsultants shall be endorsed to name the
Commission as an additional insured using ISO form CG 20 38 04 13 or an endorsement
providing the exact same coverage. If requested by Consultant, the Commission may
approve different scopes or minimum limits of insurance for particular subcontractors or
subconsultants.
3.13 Safety. Consultant shall execute and maintain its work so as to avoid
injury or damage to any person or property. In carrying out its Services, the Consultant
shall at all times be in compliance with all applicable local, state and federal laws, rules
and regulations, and shall exercise all necessary precautions for the safety of employees
appropriate to the nature of the work and the conditions under which the work is to be
performed. Safety precautions as applicable shall include, but shall not be limited to: (A)
adequate life protection and life saving equipment and procedures; (B) instructions in
accident prevention for all employees and subcontractors, such as safe walkways,
scaffolds, fall protection ladders, bridges, gang planks, confined space procedures,
trenching and shoring, equipment and other safety devices, equipment and wearing
apparel as are necessary or lawfully required to prevent accidents or injuries; and (C)
adequate facilities for the proper inspection and maintenance of all safety measures.
3.14 Fees and Payment.
3.14.1 Compensation. Consultant shall receive compensation,
including authorized reimbursements, for all Services rendered under this Agreement at
the rates set forth in Exhibit "B" attached hereto. The total compensation shall not exceed
Three Hundred Seventy-Three Thousand Eight Hundred Forty-Seven Dollars ($373,847)
without written approval of Commission's Executive Director (“Total Compensation”).
Extra Work may be authorized, as described below, and if authorized, will be
compensated at the rates and manner set forth in this Agreement.
3.14.2 Payment of Compensation. Consultant shall submit to
Commission a monthly statement which indicates work completed and hours of Services
rendered by Consultant. The statement shall describe the amount of Services and
supplies provided since the initial commencement date, or since the start of the
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subsequent billing periods, as appropriate, through the date of the statement.
Commission shall, within 45 days of receiving such statement, review the statement and
pay all approved charges thereon.
3.14.3 Reimbursement for Expenses. Consultant shall not be
reimbursed for any expenses unless authorized in writing by Commission.
3.14.4 Extra Work. At any time during the term of this Agreement,
Commission may request that Consultant perform Extra Work. As used herein, "Extra
Work" means any work which is determined by Commission to be necessary for the
proper completion of the Project, but which the parties did not reasonably anticipate would
be necessary at the execution of this Agreement. Consultant shall not perform, nor be
compensated for, Extra Work without written authorization from Commission's Executive
Director.
3.15 Accounting Records. Consultant shall maintain complete and
accurate records with respect to all costs and expenses incurred and fees charged under
this Agreement. All such records shall be clearly identifiable. Consultant shall allow a
representative of Commission during normal business hours to examine, audit, and make
transcripts or copies of such records and any other documents created pursuant to this
Agreement. Consultant shall allow inspection of all work, data, documents, proceedings,
and activities related to the Agreement for a period of three (3) years from the date of final
payment under this Agreement.
3.16 Termination of Agreement.
3.16.1 Grounds for Termination. Commission may, by written notice
to Consultant, terminate the whole or any part of this Agreement at any time and without
cause by giving written notice to Consultant of such termination, and specifying the
effective date thereof. Upon termination, Consultant shall be compensated only for those
services which have been fully and adequately rendered to Commission through the
effective date of the termination, and Consultant shall be entitled to no further
compensation. Consultant may not terminate this Agreement except for cause.
3.16.2 Effect of Termination. If this Agreement is terminated as
provided herein, Commission may require Consultant to provide all finished or unfinished
Documents and Data, as defined below, and other information of any kind prepared by
Consultant in connection with the performance of Services under this Agreement.
Consultant shall be required to provide such document and other information within fifteen
(15) days of the request.
3.16.3 Additional Services. In the event this Agreement is terminated
in whole or in part as provided herein, Commission may procure, upon such terms and in
such manner as it may determine appropriate, services similar to those terminated.
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3.17 Delivery of Notices. All notices permitted or required under this
Agreement shall be given to the respective parties at the following address, or at such
other address as the respective parties may provide in writing for this purpose:
CONSULTANT: COMMISSION:
BCA Watson Rice LLP Riverside County
2355 Crenshaw Blvd Transportation Commission
Suite 150 4080 Lemon Street, 3rd Floor
Torrance, CA 90501 Riverside, CA 92501
Attn: Michael de Castro Attn: Executive Director
Such notice shall be deemed made when personally delivered or when
mailed, forty-eight (48) hours after deposit in the U.S. Mail, first class postage prepaid
and addressed to the party at its applicable address. Actual notice shall be deemed
adequate notice on the date actual notice occurred, regardless of the method of service.
3.18 Ownership of Materials/Confidentiality.
3.18.1 Documents & Data. This Agreement creates an exclusive and
perpetual license for Commission to copy, use, modify, reuse, or sub-license any and all
copyrights and designs embodied in plans, specifications, studies, drawings, estimates,
materials, data and other documents or works of authorship fixed in any tangible medium
of expression, including but not limited to, physical drawings or data magnetically or
otherwise recorded on computer diskettes, which are prepared or caused to be prepared
by Consultant under this Agreement (“Documents & Data”).
Consultant shall require all subcontractors to agree in writing that
Commission is granted an exclusive and perpetual license for any Documents & Data the
subcontractor prepares under this Agreement.
Consultant represents and warrants that Consultant has the legal
right to grant the exclusive and perpetual license for all such Documents & Data.
Consultant makes no such representation and warranty in regard to Documents & Data
which were prepared by design professionals other than Consultant or provided to
Consultant by the Commission.
Commission shall not be limited in any way in its use of the
Documents & Data at any time, provided that any such use not within the purposes
intended by this Agreement shall be at Commission’s sole risk.
All programs, working papers, files and other materials of the
Consultant made pursuant to this Agreement shall remain the property of the Consultant.
The Commission will have access to this material at any time. All reports delivered by the
Consultant and its subcontractors pursuant to the Agreement shall become the property
of the Commission without restriction or limitation on their use and shall be made available
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upon request, to the Commission at any time. Original copies of the deliverable reports
shall be delivered to the Commission upon completion of the Services or termination of
the Services. The Consultant shall be permitted to retain copies of such items for the
furtherance of its technical proficiency; however, publication of this material is subject to
the written approval of the Commission.
3.18.2 Intellectual Property. In addition, Commission shall have and
retain all right, title and interest (including copyright, patent, trade secret and other
proprietary rights) in all plans, specifications, studies, drawings, estimates, materials,
data, computer programs or software and source code, enhancements, documents, and
any and all works of authorship fixed in any tangible medium or expression, including but
not limited to, physical drawings or other data magnetically or otherwise recorded on
computer media (“Intellectual Property”) prepared or developed by or on behalf of
Consultant under this Agreement as well as any other such Intellectual Property prepared
or developed by or on behalf of Consultant under this Agreement.
The Commission shall have and retain all right, title and interest in
Intellectual Property developed or modified under this Agreement whether or not paid for
wholly or in part by Commission, whether or not developed in conjunction with Consultant,
and whether or not developed by Consultant. Consultant will execute separate written
assignments of any and all rights to the above referenced Intellectual Property upon
request of Commission.
Consultant shall also be responsible to obtain in writing separate
written assignments from any subcontractors or agents of Consultant of any and all right
to the above referenced Intellectual Property. Should Consultant, either during or
following termination of this Agreement, desire to use any of the above-referenced
Intellectual Property, it shall first obtain the written approval of the Commission.
All materials and documents which were developed or prepared by
the Consultant for general use prior to the execution of this Agreement and which are not
the copyright of any other party or publicly available and any other computer applications,
shall continue to be the property of the Consultant. However, unless otherwise identified
and stated prior to execution of this Agreement, Consultant represents and warrants that
it has the right to grant the exclusive and perpetual license for all such Intellectual Property
as provided herein.
Commission further is granted by Consultant a non-exclusive and
perpetual license to copy, use, modify or sub-license any and all Intellectual Property
otherwise owned by Consultant which is the basis or foundation for any derivative,
collective, insurrectional, or supplemental work created under this Agreement.
3.18.3 Confidentiality. All ideas, memoranda, specifications, plans,
procedures, drawings, descriptions, computer program data, input record data, written
information, and other Documents and Data either created by or provided to Consultant
in connection with the performance of this Agreement shall be held confidential by
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Consultant. Such materials shall not, without the prior written consent of Commission, be
used by Consultant for any purposes other than the performance of the Services. Nor
shall such materials be disclosed to any person or entity not connected with the
performance of the Services or the Project. Nothing furnished to Consultant which is
otherwise known to Consultant or is generally known, or has become known, to the
related industry shall be deemed confidential. Consultant shall not use Commission's
name or insignia, photographs of the Project, or any publicity pertaining to the Services
or the Project in any magazine, trade paper, newspaper, television or radio production or
other similar medium without the prior written consent of Commission.
3.18.4 Infringement Indemnification. Consultant shall defend,
indemnify and hold the Commission, its directors, officials, officers, employees,
volunteers and agents free and harmless, pursuant to the indemnification provisions of
this Agreement, for any alleged infringement of any patent, copyright, trade secret, trade
name, trademark, or any other proprietary right of any person or entity in consequence of
the use on the Project by Commission of the Documents & Data, including any method,
process, product, or concept specified or depicted.
3.19 Cooperation; Further Acts. The Parties shall fully cooperate with one
another, and shall take any additional acts or sign any additional documents as may be
necessary, appropriate or convenient to attain the purposes of this Agreement.
3.20 Attorney's Fees. If either party commences an action against the
other party, either legal, administrative or otherwise, arising out of or in connection with
this Agreement, the prevailing party in such litigation shall be entitled to have and recover
from the losing party reasonable attorney's fees and costs of such actions.
3.21 Indemnification. Consultant shall defend, indemnify and hold the
Commission, its directors, officials, officers, agents, consultants, employees and
volunteers free and harmless from any and all claims, demands, causes of action, costs,
expenses, liabilities, losses, damages or injuries, in law or in equity, to property or
persons, including wrongful death, in any manner arising out of or incident to any alleged
negligent acts, omissions or willful misconduct of the Consultant, its officials, officers,
employees, agents, consultants, and contractors arising out of or in connection with the
performance of the Services, the Project or this Agreement, including without limitation,
the payment of all consequential damages, attorneys fees and other related costs and
expenses. Consultant shall defend, at Consultant’s own cost, expense and risk, any and
all such aforesaid suits, actions or other legal proceedings of every kind that may be
brought or instituted against the Commission, its directors, officials, officers, agents,
consultants, employees and volunteers. Consultant shall pay and satisfy any judgment,
award or decree that may be rendered against the Commission or its directors, officials,
officers, agents, consultants, employees and volunteers, in any such suit, action or other
legal proceeding. Consultant shall reimburse the Commission and its directors, officials,
officers, agents, consultants, employees and volunteers, for any and all legal expenses
and costs, including reasonable attorney’s fees, incurred by each of them in connection
therewith or in enforcing the indemnity herein provided. Consultant’s obligation to
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indemnity shall not be restricted to insurance proceeds, if any, received by the
Commission or its directors, officials, officers, agents, consultants, employees and
volunteers. This Section 3.21 shall survive any expiration or termination of this
Agreement.
3.22 Entire Agreement. This Agreement contains the entire Agreement
of the parties with respect to the subject matter hereof, and supersedes all prior
negotiations, understandings or agreements. This Agreement may only be
supplemented, amended, or modified by a writing signed by both parties.
3.23 Governing Law. This Agreement shall be governed by the laws of
the State of California. Venue shall be in Riverside County.
3.24 Time of Essence. Time is of the essence for each and every
provision of this Agreement.
3.25 Commission's Right to Employ Other Consultants. The Commission
reserves the right to employ other consultants in connection with this Project.
3.26 Successors and Assigns. This Agreement shall be binding on the
successors and assigns of the parties, and shall not be assigned by Consultant without
the prior written consent of Commission.
3.27 Prohibited Interests and Conflicts.
3.27.1 Solicitation. Consultant maintains and warrants that it has not
employed nor retained any company or person, other than a bona fide employee working
solely for Consultant, to solicit or secure this Agreement. Further, Consultant warrants
that it has not paid nor has it agreed to pay any company or person, other than a bona
fide employee working solely for Consultant, any fee, commission, percentage, brokerage
fee, gift or other consideration contingent upon or resulting from the award or making of
this Agreement. For breach or violation of this warranty, Commission shall have the right
to rescind this Agreement without liability.
3.27.2 Conflict of Interest. For the term of this Agreement, no
member, officer or employee of Commission, during the term of his or her service with
Commission, shall have any direct interest in this Agreement, or obtain any present or
anticipated material benefit arising therefrom.
3.27.3 Conflict of Employment. Employment by the Consultant of
personnel currently on the payroll of the Commission shall not be permitted in the
performance of this Agreement, even though such employment may occur outside of the
employee’s regular working hours or on weekends, holidays or vacation time. Further,
the employment by the Consultant of personnel who have been on the Commission
payroll within one year prior to the date of execution of this Agreement, where this
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employment is caused by and or dependent upon the Consultant securing this or related
Agreements with the Commission, is prohibited.
3.27.4 Employment Adverse to the Commission. Consultant shall
notify the Commission, and shall obtain the Commission’s written consent, prior to
accepting work to assist with or participate in a third-party lawsuit or other legal or
administrative proceeding against the Commission during the term of this Agreement.
3.28 Equal Opportunity Employment. Consultant represents that it is an
equal opportunity employer and it shall not discriminate against any employee or
applicant for employment because of race, religion, color, national origin, ancestry, sex
or age. Such non-discrimination shall include, but not be limited to, all activities related
to initial employment, upgrading, demotion, transfer, recruitment or recruitment
advertising, layoff or termination. Consultant shall also comply with all relevant provisions
of Commission's Disadvantaged Business Enterprise program, Affirmative Action Plan or
other related Commission programs or guidelines currently in effect or hereinafter
enacted.
3.29 Subcontracting. Consultant shall not subcontract any portion of the
work or Services required by this Agreement, except as expressly stated herein, without
prior written approval of the Commission. Subcontracts, if any, shall contain a provision
making them subject to all provisions stipulated in this Agreement.
3.30 Reserved.
3.31 Employment of Apprentices. This Agreement shall not prevent the
employment of properly indentured apprentices in accordance with the California Labor
Code, and no employer or labor union shall refuse to accept otherwise qualified
employees as indentured apprentices on the work performed hereunder solely on the
ground of race, creed, national origin, ancestry, color or sex. Every qualified apprentice
shall be paid the standard wage paid to apprentices under the regulations of the craft or
trade in which he or she is employed and shall be employed only in the craft or trade to
which he or she is registered.
3.32 No Waiver. Failure of Commission to insist on any one occasion
upon strict compliance with any of the terms, covenants or conditions hereof shall not be
deemed a waiver of such term, covenant or condition, nor shall any waiver or
relinquishment of any rights or powers hereunder at any one time or more times be
deemed a waiver or relinquishment of such other right or power at any other time or times.
3.33 Eight-Hour Law. Pursuant to the provisions of the California Labor
Code, eight hours of labor shall constitute a legal day's work, and the time of service of
any worker employed on the work shall be limited and restricted to eight hours during any
one calendar day, and forty hours in any one calendar week, except when payment for
overtime is made at not less than one and one-half the basic rate for all hours worked in
excess of eight hours per day ("Eight-Hour Law"), unless Consultant or the Services are
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not subject to the Eight-Hour Law. Consultant shall forfeit to Commission as a penalty,
$50.00 for each worker employed in the execution of this Agreement by him, or by any
sub-consultant under him, for each calendar day during which such workman is required
or permitted to work more than eight hours in any calendar day and forty hours in any one
calendar week without such compensation for overtime violation of the provisions of the
California Labor Code, unless Consultant or the Services are not subject to the Eight-
Hour Law.
3.34 Subpoenas or Court Orders. Should Consultant receive a subpoena
or court order related to this Agreement, the Services or the Project, Consultant shall
immediately provide written notice of the subpoena or court order to the Commission.
Consultant shall not respond to any such subpoena or court order until notice to the
Commission is provided as required herein, and shall cooperate with the Commission in
responding to the subpoena or court order.
3.35 Survival. All rights and obligations hereunder that by their nature are
to continue after any expiration or termination of this Agreement, including, but not limited
to, the indemnification and confidentiality obligations, and the obligations related to receipt
of subpoenas or court orders, shall survive any such expiration or termination.
3.36 No Third Party Beneficiaries. There are no intended third party
beneficiaries of any right or obligation assumed by the Parties.
3.37 Labor Certification. By its signature hereunder, Consultant certifies
that it is aware of the provisions of Section 3700 of the California Labor Code which
require every employer to be insured against liability for Workers’ Compensation or to
undertake self-insurance in accordance with the provisions of that Code, and agrees to
comply with such provisions before commencing the performance of the Services.
3.38 Counterparts. This Agreement may be signed in counterparts, each
of which shall constitute an original.
3.39 Incorporation of Recitals. The recitals set forth above are true and
correct and are incorporated into this Agreement as though fully set forth herein.
3.40 Invalidity; Severability. If any portion of this Agreement is declared
invalid, illegal, or otherwise unenforceable by a court of competent jurisdiction, the
remaining provisions shall continue in full force and effect.
3.41 Conflicting Provisions. In the event that provisions of any attached
exhibits conflict in any way with the provisions set forth in this Agreement, the language,
terms and conditions contained in this Agreement shall control the actions and obligations
of the Parties and the interpretation of the Parties’ understanding concerning the
performance of the Services.
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3.42 Headings. Article and Section Headings, paragraph captions or
marginal headings contained in this Agreement are for convenience only and shall have
no effect in the construction or interpretation of any provision herein.
3.43 Assignment or Transfer. Consultant shall not assign, hypothecate,
or transfer, either directly or by operation of law, this Agreement or any interest herein,
without the prior written consent of the Commission. Any attempt to do so shall be null
and void, and any assignees, hypothecates or transferees shall acquire no right or interest
by reason of such attempted assignment, hypothecation or transfer.
3.44 Authority to Enter Agreement. Consultant has all requisite power and
authority to conduct its business and to execute, deliver, and perform the Agreement.
Each Party warrants that the individuals who have signed this Agreement have the legal
power, right, and authority to make this Agreement and bind each respective Party.
[SIGNATURES ON FOLLOWING PAGE]
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SIGNATURE PAGE
TO
RIVERSIDE COUNTY TRANSPORTATION COMMISSION
AGREEMENT FOR AUDIT AND ATTESTATION SERVICES
FOR THE WESTERN RIVERSIDE COUNTY
MEASURE A RECIPIENTS AND
TRANSPORTATION DEVELOPMENT ACT CLAIMANTS
OF THE
RIVERSIDE COUNTY TRANSPORTATION COMMISSION
AND THE MEMBER AGENCIES
OF THE
WESTERN RIVERSIDE COUNTY
REGIONAL CONSERVATION AUTHORITY
WITH BCA WATSON RICE LLP
IN WITNESS WHEREOF, this Agreement was executed on the date first
written above.
RIVERSIDE COUNTY
TRANSPORTATION COMMISSION BCA WATSON RICE LLP
By: _________________________ By: ____________________________
Anne Mayer Signature
Executive Director
__________________________
Name
__________________________
Title
Approved as to Form: Attest:
By:____________________________ By: ________________________
Best Best & Krieger LLP Its: Secretary
General Counsel
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EXHIBIT "A"
STATEMENT OF SERVICES
[TO BE INSERTED BEHIND THIS PAGE]
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EXHIBIT A - 1
Statement of Services
A. General
The Riverside County Transportation Commission (RCTC), as the transportation planning agency
for Riverside County and the managing agency for the Western Riverside County Regional
Conservation Authority (RCA), is issuing this Request for Proposal in order to secure services
from a Consultant(s) of certified public accountants to perform for the fiscal years ending June
30, 2021, 2022, and 2023, with the option of performing such services for three (3) additional one-
year terms:
Financial and compliance audits of RCTC’s Transportation Development Act (TDA)
claimants for transit (including funding from Local Transportation Fund (LTF) Article 4,
State Transit Assistance (STA), State of Good Repair (SGR), Low Carbon Transit
Operations Program (LCTOP), and Proposition 1B);
Financial and compliance audits of RCTC’s TDA claimants for bicycle and pedestrian
projects (consisting of funding from LTF Article 3);
Agreed-upon procedures similar to those proposed in Appendix A, Section G, for RCTC’s
Measure A recipients of local streets and roads (LSR) funding;
Agreed-upon procedures similar to those proposed in Appendix A, Section H, for RCTC’s
Measure A recipients of specialized transit funding; and
Agreed upon procedures similar to those proposed in Appendix A, Section I, for RCA’s
Member Agencies related to the collection and remittance of mitigation fees in accordance
with each Member Agency’s Multiple Species Habitat Conservation Plan (MSHCP)
Ordinance (with amendments).
Measure A Agreed Upon Procedures
The Measure A Specialized Transit Agreed-Upon Procedures apply to Western County non-
profit and community organizations awarded funding for specialized transit services for a three-
year period through a competitive call for projects. The FY 2020/21 funding awarded at RCTC’s
April 11, 2018 meeting represents the final year of the FY 2018/19 – 2020/21 Call for Projects.
Staff expects that the awards for the FY 2021/22 – 2023/24 Call for Projects will be approved by
RCTC at the April 14, 2021 meeting, as noted in the FY 2021/22 – 2023/24 Measure A Specialized
Transit Call for Projects Guidelines presented at the January 13, 2021 RCTC meeting. FY
2024/25 – FY 2025/26 funding will be determined by the FY 2024/25 – 2026/27 Call for Projects
to be awarded in Spring 2024.
The Measure A LSR Agreed-Upon Procedures apply to all eligible cities in Riverside County
and the County of Riverside. Measure A LSR funding is allocated and disbursed monthly to the
cities and the County of Riverside, as specified in Measure A. RCTC does not currently anticipate
any incorporations or dis-incorporations of cities that would result in a change in Measure A LSR
recipients. Currently, all cities and the County of Riverside meet the eligibility requirements that
include:
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Participation in the Western County or Coachella Valley Transportation Uniform Mitigation
Fee (TUMF) Program, as applicable;
Participation in the RCA’s MSHCP, as applicable;
Annual submittal of a 5-Year Capital Improvement Plan (CIP) list of projects;
Annual Maintenance of Effort certification; and
Annual Project Status Report for the prior fiscal year CIP.
Transportation Development Act Audits
The TDA Transit audits will be performed for the municipal transit operators in the Western
County cities of Banning, Beaumont, Corona, and Riverside. TDA Transit operating and capital
allocations are approved annually by RCTC in June based on the submittal of each transit
operator’s Short-Range Transit Plan. The transit operators also may unexpended Proposition 1B
funding for capital/rehabilitation and/or security projects received through Caltrans and the
California Office of Emergency Services (CalOES), respectively.
The TDA Bicycle and Pedestrian audits apply to local jurisdictions awarded funding by RCTC
for bicycle and pedestrian projects through a biennial competitive call for projects. Local
jurisdictions generally have two years to complete projects, including those projects approved in
the FY 2019/20 Call for Projects at RCTC’s June 12, 2019 meeting. However, as per revised
guidelines approved by RCTC at its January 13, 2021 meeting effective with the FY 2021/22 Call
for Projects to be awarded at the June 9, 2021 RCTC meeting, local jurisdictions will now have
three years to complete projects. Claimants may request disbursement of their allocations by
RCTC on a reimbursement basis in accordance with RCTC’s policies. Accordingly, the TDA
Bicycle and Pedestrian audits are dependent on claims for expenditures of such funds.
MSHCP Agreed Upon Procedures
The MSHCP Agreed-Upon Procedures are required for local jurisdictions that are signatories to
the Joint Exercise of Powers Agreement forming the RCA. They include the 18 Western County
cities and the County of Riverside. The Member Agencies form the independent RCA Board of
Directors to acquire, administer, operate, and maintain land and facilities to establish habitat
reserves for the conservation and protection of species covered by the MSHCP and to implement
the MSHCP.
At its December 7, 2020 meeting, the RCA adopted the 2020 Nexus Study and increase in Local
Development Mitigation Fees (LDMF). The LDMF increase is effective in two phases. The first
phase, an increase of 50%, is effective July 1, 2021. The second phase, full implementation, is
effective January 1, 2022. Member Agencies must prepare an ordinance and resolution to be
considered and approved by the city council (Board of Supervisors in the case of the County of
Riverside) in time to implement the new fee by July 1, 2021. Final action of the city council/Board
of Supervisors must be no later than May 2, 2021 to ensure the new ordinance takes effect by
July 1, 2021 in accordance with California Government Code Section 66017. Per the
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Implementing Agreement with the cities and the County of Riverside signed, the cities and County
must adopt the ordinance, “in substantially the same form or at a minimum, containing the same
requirements as the model ordinance,” adopted by the RCA Board of Directors.
Anticipated Changes in Audit and Attestation Services
RCTC does not anticipate any change in the local jurisdictions subject to TDA Transit audit and
Measure A LSR attestation services; RCA does not anticipate any change in the local jurisdictions
subject to MSHCP attestation services. The agencies requiring Measure A Specialized Transit
and the local jurisdictions requiring TDA Bicycle and Pedestrian audits will be determined each
year based on actual disbursements.
The Chief Financial Officer is designated as the coordinator of the work and may appoint a
Finance Department staff to coordinate day-to-day oversight. The Chief Financial Officer will
serve as the liaison to the audit oversight committee designated by RCTC and the Executive
Committee designated by RCA.
The audits are to be performed by the Consultant(s) in accordance with generally accepted
auditing standards, including use of the most current version of each of the following standards
and guidelines:
American Institute of Certified Public Accountants audit and attestation standards;
General Accounting Office’s (GAO) Government Auditing Standards;
Measure A conformance requirements (Section I);
Transit requirements (Section J); and
MSHCP requirements (Section K).
B. Scope of Work to be Performed
The selected Consultant(s) will be required to perform the following tasks:
Audit of the transit and transportation financial statements of the jurisdictions receiving
TDA funds in accordance with auditing standards generally accepted in the United States
of America; the standards applicable to financial audits contained in Government Auditing
Standards, issued by the Comptroller General of the United States; the TDA as
summarized in the TDA Guidebook; and SGR, LCTOP, and Proposition 1B audit
guidelines specified by Caltrans and CalOES.
Performance of agreed-upon procedures similar to those listed in Section F solely to assist
RCTC in evaluating the applicable jurisdictions’ Measure A transportation funds and
degree of their compliance with RCTC’s requirements of the Measure A LSR program.
RCTC reserves the right to modify the agreed-upon procedures as deemed necessary to
fulfill its oversight responsibilities for the Measure A LSR program.
Performance of agreed-upon procedures similar to those listed in Section G solely to
assist RCTC in evaluating the applicable jurisdictions’/agencies’ Measure A specialized
transit funds and degree of their compliance with RCTC’s requirements of the Measure A
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specialized transit program. RCTC reserves the right to modify the agreed-upon
procedures as deemed necessary to fulfill its oversight responsibilities for the Measure A
Specialized Transit program.
Performance of agreed-upon procedures similar to those listed in Section H solely to assist
RCA in evaluating if fees are collected and remitted in accordance with each Member
Agency’s MSHCP Mitigation Fee Ordinance (with amendments). RCTC reserves the right
to modify the agreed-upon procedures as deemed necessary to fulfill its oversight
responsibilities for the MSHCP, including RCA changes to the LDMF affecting Member
Agency MSHCP Mitigation Fee Ordinances and adoption of a related resolution.
C. Deliverables
Following completion of the audits and agreed-upon procedures and a review of the draft reports
by RCTC, the Consultant(s) shall issue:
A report on the fair presentation of the financial statements for the TDA claimants in
conformity with generally accepted accounting principles and on compliance and internal
control.
A report on the agreed-upon procedures related to the Measure A recipients of LSR
funding.
A report on the agreed-upon procedures related to the Measure A recipients of specialized
transit funding.
A report on the agreed-upon procedures related to the MSHCP fee collection and
remittance.
Drafts of the reports will be provided to RCTC staff and the applicable TDA claimant, Measure A
recipient, or Member Agency. The Chief Financial Officer or designee shall review and approve
each report prior to issuance.
For each report issued to RCTC, the Consultant shall issue one PDF copy to RCTC and one PDF
to the applicable TDA claimant or Measure A recipient, as applicable.
For each report issued to RCA, the Consultant shall print three (3) copies and issue one PDF
copy to RCA.
Financial and Compliance Reports
The Consultant will submit a financial and compliance report for each TDA audit. The Consultant
will be responsible for the preparation, editing, and printing of all financial and compliance reports,
including the financial statements and notes to the financial statements. Although the Consultant
will prepare the financial statements, management of the TDA Claimant is responsible for the
financial statements.
Agreed-Upon Procedures
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The Consultant will submit a report for each Measure A recipient or Member Agency, as
applicable, listing the procedures performed, results of procedures performed, and findings, if any.
The Consultant will be responsible for preparation, editing, and printing of all agreed-upon
procedure reports.
D. Required Communications
Significant Deficiencies – In the required reports on compliance and internal controls, the
Consultant shall communicate any significant deficiencies found during the audit of the TDA
claimants. A significant deficiency shall be defined as a control deficiency, or combination of
control deficiencies, that adversely affects the entity’s ability to initiate, authorize, record, process,
or report financial data reliably in accordance with generally accepted accounting principles such
that there is more than a remote likelihood that a misstatement of the entity’s financial statements
that is more than inconsequential will not be prevented or detected by the entity’s internal control.
Significant deficiencies that are also material weaknesses shall be identified as such in the report.
Other control deficiencies discovered by the Consultant may be reported in a separate letter to
management, which shall be referred to in the reports on compliance and internal controls.
The report on compliance and internal controls shall include all material instances of
noncompliance. All nonmaterial instances of noncompliance may be reported in a separate
management letter, which shall be referred to in the report on compliance and internal controls.
Irregularities and illegal acts – The Consultant shall be required to make an immediate, written
report of all irregularities and illegal acts or indication of illegal acts of which they become aware
to the jurisdiction/agency and RCTC’s/RCA’s audit oversight committee, Executive Director, and
Chief Financial Officer.
Planning meetings – The Consultant shall meet with RCTC staff at least once a year prior to the
commencement of the audits and agreed-upon procedures.
E. Audit Schedule
The work to be performed at the jurisdictions and agencies shall be arranged by the Consultant
with the individual jurisdiction or agency after the conclusion of a planning meeting with RCTC
and RCTC’s issuance of audit notification letters to each jurisdiction and agency.
The RCTC work should be scheduled for no later than November 15 of each year. Barring
unforeseen circumstances, the Consultant must conduct the work activities and provide all
required reports and information to RCTC no later than December 31 of each year. The TDA
audits are required to be submitted to the State Controller by December 31 of each year; however,
an extension may be granted by RCTC for no more than 90 days. RCTC’s policy for Measure A
reports follows the TDA requirement; however, a formal extension is generally not issued.
RCA is required to annually certify to RCTC by June 30 that local jurisdictions participating in the
MSHCP comply with the MSHCP participation requirements to collect and remit fees in
accordance with each Member Agency’s MSHCP Ordinance (with amendments). Accordingly,
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the RCA requires all agreed-upon procedures reports to be issued by February 28 in the year
following the fiscal year for which the agreed-upon procedures are performed.
The Consultant shall keep RCTC apprised at least monthly on the status of the audits and any
issues which have been encountered. RCTC will provide assistance, to the extent necessary
and/or possible, to resolve such issues. If circumstances outside the control of the Consultant or
RCTC or the RCA arise and the deadline cannot be met, both parties agree to communicate the
circumstances and develop an action plan.
F. Measure A Proposed Local Streets and Roads Agreed-Upon Procedures (Proposed)
1. Review the 2009 Measure A (Ordinance 02-001) compliance requirements. Western
County jurisdictions are required to participate in the Transportation Uniform Mitigation
Fee (TUMF) program and in the Multi-Species Habitat Conservation Plan (MSHCP),
which are administered by the Western Riverside Council of Governments (WRCOG)
and the Western Riverside County Regional Conservation Authority (RCA),
respectively. Coachella Valley jurisdictions are required to participate in the TUMF
program administered by the Coachella Valley Association of Governments (CVAG).
Indicate participation in TUMF and/or MSHCP programs.
2. Obtain from RCTC the approved Five-Year Capital Improvement Plan (CIP) for the
fiscal year.
3. Obtain from the jurisdiction a detail general ledger and balance sheet for the fiscal
year.
a. Identify the amount of Measure A cash and investments recorded at the end of the
fiscal year. Compare amount to Measure A fund balance and provide an
explanation for any differences greater than 25% of fund balance.
b. Identify any amounts due from other funds.
c. Identify the components of ending fund balance for the Measure A activity (e.g.,
nonspendable, restricted, assigned, committed, unassigned) [and for County of
Riverside only by geographic area].
i. Identify the existence of any restatement of Measure A fund balance; inquire
of management as to the reason for any restatement and provide a summary
of the restatement items.
ii. Compare ending fund balance to total revenues for the current year and prior
two years. If ending fund balance is greater than sum of total revenues for the
three-year period, inquire of management as to the reason(s) for the
accumulation of fund balance (e.g., status of specific projects included in the
5-Year CIP).
4. Obtain an operating statement for the Measure A activity for the fiscal year, including
budget amounts; include the operating statement as an exhibit to the report.
a. Review the revenues in the operating statement.
i. Inquire of management as to what fund is used to record Measure A revenues
received from RCTC and identify what the total revenues were for the fiscal
year.
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ii. Obtain from RCTC a listing of Measure A payments to the jurisdiction.
1. Compare the Measure A sales tax revenues recorded by the jurisdiction to
the listing of payments made by RCTC. [Use gross amounts paid by RCTC]
iii. Obtain from the jurisdiction an interest allocation schedule for the fiscal year.
1. Identify the allocation amount of interest income to Measure A activity and
what the amount of interest income was for the fiscal year. If no interest
was allocated, inquire of management as to reason for not allocating
interest income.
b. Review the expenditures in the operating statement.
i. Inquire of management as to what fund is used to record Measure A
expenditures and what the total expenditures were for the fiscal year.
ii. Select expenditures for testing that comprise at least 20% of the total
expenditures.
1. For the expenditures selected for testing, compare the dollar amount listed
on the general ledger to the supporting documentation.
2. For the expenditures selected for testing, review the 5-Year CIP and note
if the project is included in the 5-Year CIP and is an allowable cost.
iii. Inquire of management as to the nature of any transfers in or out recorded in
the Measure A fund. For any transfers out, determine if nature of transfer out
was included in the 5-Year CIP.
iv. Inquire of management as to the amount of general or non-project-related
indirect costs, if any, included in expenditures. If indirect costs exceed 8% of
Measure A revenue, inquire of management as to the basis for indirect costs
charged to Measure A. If indirect costs are identified, determine if such costs
are included in the 5-Year CIP.
v. Inquire of management as to the amount of debt service expenditures recorded
in the Measure A fund and determine is such costs are included in the 5-Year
CIP.
5. Obtain from RCTC a listing of jurisdictions who participate in the Western County or
Coachella Valley TUMF programs.
a. If the jurisdiction is a participant in the TUMF program, select at least one
disbursement for validation as to the amount remitted to WRCOG or CVAG, as
applicable.
b. Indicate the total amount of TUMF fees collected and remitted during the fiscal
year.
6. Obtain from RCTC a listing of jurisdictions who participate in the Western County
MSHCP program.
a. If the jurisdiction is a participant in the MSHCP program, select at least one
disbursement for validation as to the amount remitted to RCA, as applicable.
b. Inquire of management as to the existence of any fees collected in prior years and
not remitted to RCA as of the end of the fiscal year.
c. Indicate the total amount of MSHCP fees collected and remitted during the fiscal
year.
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7. Obtain from RCTC the MOE base year requirement, including supporting detail of the
calculations for its city/County, and the carryover amount allowed as of the beginning
of the fiscal year.
a. Obtain from the city/County a calculation of its current year MOE amount in the
format similar to its base year calculation. Attach a copy of the calculation
worksheet provided by the city/County as an exhibit to the report.
b. Compare the current year MOE amounts from the General Fund to the general
ledger.
c. Review the General Fund general ledger to determine if there were any transfers
in to fund any MOE amounts.
d. Compare the amount of current year MOE expenditures to the MOE base
requirement and add any excess to, or subtract any deficiency from, the carryover
amount.
e. If the amount of discretionary funds spent is less than the MOE base requirement
(MOE deficiency), determine the amount of any prior year MOE carryover using
the information obtained from RCTC and reduce the MOE deficiency by any
available MOE carryover to determine an adjusted current year expenditure
amount.
G. Measure A Proposed Specialized Transit Agreed-Upon Procedures (Proposed)
1. Obtain specialized transit grant funding agreement from RCTC, including exhibit of
budget submitted with funding application, matching requirements, and any budget
modifications subsequently approved by RCTC.
a. Inquire of management as to the accounting and identification of Measure A
funded programs.
b. Inquire of management as to whether the accounting of Measure A funds received
by the Agency were accounted for separately or commingled with other programs
and/or funding sources.
2. Obtain monthly reporting package for third, sixth, ninth, and last months of the annual
reporting period and revenue and expense amounts for the fiscal year from the general
ledger.
a. Recalculate totals on reporting packages.
b. Inquire of management as to the accomplishment of the applicable program goals
and source of documentation for accomplishing program goals. Agree third, sixth,
and ninth month reports provided by RCTC to source documents from Agency as
to total passenger one-way trips made or number of people served.
c. Include a summary of revenues and expenses from the general ledger for the fiscal
year compared to budgeted amounts (present in format of monthly reporting
package) as an exhibit (Exhibit A).
d. For the exhibit summary of revenues and expenses, calculate variances of
budgeted expense amounts compared to actual amounts in terms of dollars and
percentages. For expense variances greater than 25%, inquire of management
as to the existence of approval from RCTC. Determine if budgeted amounts per
Exhibit A are consistent with the current Commission-approved budget.
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e. For the exhibit summary of revenues and expenses, calculate the variance of total
budgeted expenses compared to actual total expenses in terms of dollars and
percentage.
i. If the variance is greater than 20%, inquire of management why the actual total
expenses were less than the budgeted total expenses.
f. List the total revenues and expenses from the final fiscal year reporting package
(“Check Sum” tab) and calculate the difference between funding received and
expenses/capital expenditures incurred as per Exhibit A. For any variances, inquire
of management as to the nature of the changes in originally reported revenues
and/or expenses.
3. Determine if funding agreement includes requirement for matching contributions. If
agency was required to provide matching contributions, perform the following
procedures:
a. Review RCTC’s policy on qualifying in-kind matching contributions.
b. Inquire of management how matching requirements per the funding agreement
were satisfied (i.e., sources) and what the total dollar value was for cash match
and for in-kind matching contributions. Indicate if cash and in-kind matching
amounts were not met, met, or exceeded, as applicable.
i. If match was not met based on budget match requirement, compare actual
Measure A revenues to budgeted Measure A revenues. If full amount of
budgeted Measure A was not received, the minimum match requirement
should also be reduced by a proportionate amount in order to determine the
adjusted match requirement.
ii. If adjusted match requirement was not met, inquire of management as to
explanation for shortfall in meeting adjusted match requirement.
c. If source of match was in-kind contributions, inquire of management as to the
following:
i. If such contributions were made by a third party.
ii. If such third party contributions were related to property or services which
benefited the project or program and which were contributed by third parties
without charge to the grantee, or through a modified cost arrangement;
iii. If such contributions were necessary and reasonable for the efficient
accomplishment of program objectives; and
iv. If using volunteer time, a tracking method existed to identify when donated
services were provided.
d. For in-kind matching contributions presented on the third, sixth, and ninth month
reporting packages, compare such contribution amounts to supporting
documentation provided by the third party.
e. Inquire of management if any loans were obtained or lines of credit utilized to pay
Measure A program expenses.
i. If such indebtedness was incurred, inquire of management as to the amount
and if such amount is reflected in revenues as a cash match.
4. Obtain amount of Measure A funds disbursed to Agency from RCTC for specialized
transit grant purposes for the fiscal year.
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a. Agree amount from RCTC to amount recorded by the agency.
5. Obtain a summary of expenses (Personnel, Operating, Capital) by major line item
incurred by the Agency related to the specialized transit grant; include summary as an
exhibit (Exhibit A) to the report.
a. Inquire of management how Measure A expenses are recorded (i.e., direct costs,
allocations, or indirect costs).
b. Inquire of management as to the existence of any unreported expenses related to
the Measure A specialized transit program provided by the Agency. If amounts
are not reported, obtain a summary of such amounts and inquire of management
as to why such amounts are not reported.
c. Select one pay period from personnel expenses for testing.
d. Select operating expenses for testing that comprise at least 20% of the total
expenses.
e. Select all capital expenditures for testing.
f. For the expenses/capital expenditures selected for testing, compare the dollar
amount listed on the general ledger to the supporting documentation. Additionally,
for personnel expenses, agree hours charged to Measure A specialized transit
activities to approved timesheet or other documentation.
g. For the expenses/capital expenditures selected for testing, compare the type of
expense to the allowable costs included in the funding agreement.
h. Compare the summary of expenses/capital expenditures by major line item to the
budget included in the funding agreement and note any variances.
i. Inquire of management as to the amount of indirect or overhead costs, if any,
included in expenses and compare amount to the budget included in the funding
agreement.
6. Inquire of management as to the existence of any temporarily restricted net assets or
deferred revenues as of the end of the fiscal year related to the Measure A funded
program.
a. Obtain a copy of approval letter from RCTC, if applicable, for the carryover of such
balances.
b. If temporarily restricted net assets or deferred revenues exist as of the end of the
fiscal year, inquire of management as to source of funds responsible for generating
such balances.
7. Review the prior year’s report and note the existence of any temporarily restricted net
assets or deferred revenues as of the end of the prior fiscal year; inquire of
management if such amount was used to reduce the current fiscal year disbursements
of Measure A to the Agency.
8. Inquire of management as to the rating of the Agency’s insurer for commercial general
liability insurance, business automobile liability insurance, and worker’s compensation
insurance.
H. MSHCP Member Agency Agreed-Upon Procedures (Proposed, subject to
change due to requirement to adopt new ordinance and resolution)
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1. Obtain any updates to the Member Agency’s ordinance for collection of the MSHCP
fees.
2. Upon obtaining the updates, determine if the ordinance is in accordance with the
MSHCP Implementing Agreement and Joint Powers Agreement.
3. Determine if fees on the building permits are collected in accordance with the Member
Agency ordinance.
4. Obtain the schedule of fees collected on MSHCP building permits for the year ended
June 30, 202X.
5. Obtain a listing of building permits issued during the year ended June 30, 202X.
Identify the new construction and commercial/industrial permits. Select for testing
10% of new construction and commercial/industrial building permits, selecting no less
than 25 permits or 100% of permits if total permits for new construction and
commercial/industrial is less than 25.
6. Recalculate the fees collected by the Member Agency on building permits to determine
if they are correct and if the correct amounts have been remitted to the RCA. If fees
are incorrect, determine the fees that should have been collected and remitted.
7. Determine if fees collected on building permits were remitted to the RCA within 90
days of the earlier of the date they were collected or should have been collected.
8. Determine additional amounts, if any, which should be returned to the Member Agency
for building permits.
9. If amounts are due to the RCA on building permits, calculate interest owed, based on
the RCA’s Resolution No. 07-04 adopted on September 10, 2007, using the interest
rate paid by Riverside County (County) Treasury on amounts held by the County.
10. Obtain a list of all construction (civic and infrastructure) contracts awarded by the
Member Agency during the fiscal year. Select a sample of 10% of the contracts for
testing, selecting no less than three contracts, or 100% of contracts if the total number
of contracts is less than three.
11. Compute the amount of MSHCP fees on the civic and infrastructure contracts that
should have been remitted.
12. Determine if the MSHCP fees on the civic and infrastructure contracts were remitted
to the RCA within 90 days of contract award.
13. Determine additional amounts on civic and infrastructure contracts, if any, which
should be remitted to the RCA or returned to the Member Agency.
14. If additional amounts are due to the RCA on civic and infrastructure contracts,
calculate interest owed, using the interest rate paid County Treasury on amounts held
by the County.
I. Measure A Recipient Conformance Requirements
1. Allowable Costs. Measure A funds may only be used for transportation purposes
including the administration of Division 25 including legal actions related thereto; the
construction, capital acquisition, maintenance, and operation of streets, roads,
highways including state highways and public transit systems; and for related
purposes. These purposes include expenditures for the planning, environmental
reviews, engineering and design costs, and related right-of-way acquisition.
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a. Eligible local street and road projects costs include any engineering, capital, or
maintenance cost. Decisions on projects are to be made by local jurisdictions
subject to Capital Improvement Program requirements.
i. Annual budget reflecting the local government or agency’s anticipated receipts
and expenditures should be prepared and submitted to RCTC upon approval
by the governing board. The data contained in the capital improvement plans
submitted to RCTC should be included in the recipient’s budgets. These
budgets allow for proper evaluation by RCTC of the recipient’s activities on an
annual basis. (Policy adopted May 8, 1991)
b. Eligible transit programs include special discount fares for seniors and
handicapped people, commuter bus services, funding for computer assisted
rideshare programs, and “seed” programs to encourage the creation of vanpools.
Additionally, funds will be used to provide further reductions for the truly needy and
to expand existing services and implement new services. Bus capital replacement
and additional bus service may also be an eligible program within the Coachella
Valley, subject to a determination of funding by the Coachella Valley Association
of Governments (CVAG).
2. Maintenance of Effort (MOE). Additional funds provided under Measure A are
intended to supplement existing local revenues being used for transportation
purposes. Government agencies shall maintain their existing commitment of local
funds for street highway and public transit purposes pursuant to Measure A.
a. The local cities and the County shall annually submit to RCTC a list of the proposed
uses for these funds and a certification that the MOE requirement is being met. If
in any fiscal year, the maintenance of effort requirement is not met, the agency
shall not be eligible for any Measure A funds in the following fiscal year. Such
funds shall be distributed to the remaining local governments using the formula for
the area.
i. Agencies may use any local discretionary funds expended for local streets and
roads purposes during previous fiscal years which were in excess of their
maintenance of effort requirements to meet their MOE requirements for the
fiscal year. (Measure A Maintenance of Effort Guidelines)
b. RCTC shall assure the cities’ and County compliance with MOE funding
requirements before allocating funds for local streets and roads.
c. RCTC shall not allocate funds to an individual city or the County for local streets
and roads use within the Western County and Coachella Valley areas unless
WRCOG or CVAG indicates participation of agency in the Transportation Uniform
Mitigation Fee program necessary for implementation of the planned regional
arterial system.
3. Allocation of Funds to Geographic Areas. Funds for transportation purposes shall
be allocated to the Western County, Coachella Valley, and Palo Verde Valley areas
proportionate to the Measure A funds generated within these areas.
4. Allocation of Funds within Geographic Areas. RCTC shall return 2009 Measure A
funds to the geographic areas as follows (Applicable to RCTC):
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a. Western County. To be distributed for the following programs: $370 million
(approx. 11% to new corridors; $1,020 million (approx. 30%) to highways; $390
million (approx. 12%) to public transit; $300 million (approx. 9%) to regional
arterials; $970 million (approx. 29%) to local streets and roads; $270 million
(approx. 8%) to bond financing; and $40 million (approx. 1%) to economic
development.
i. Local streets and roads funding are to be distributed by a formula based on
75% on proportionate population and 25% on 2009 Measure A revenues
generated within each jurisdiction, if they participate in the Transportation
Uniform Mitigation Fee program and Multi-Species Habitat Conservation Plan.
If local agencies choose not to participate in the TUMF and MSHCP programs,
the funds they would otherwise receive for local streets and roads will be added
to the Measure A funds for the Regional Arterial System administered by
RCTC.
b. Coachella Valley. To be distributed for the following programs: 50% to highways
and regional arterial projects; 35% to local streets and roads; and 15% to
specialized public transit.
i. Local streets and roads funds will be provided to Coachella Valley cities and
the County if they participate in the Transportation Uniform Mitigation Fee
program. If local agencies choose not to participate in the TUMF program, the
funds they would otherwise receive for local streets and roads will be added to
the Measure A funds for the Regional Arterial System administered by CVAG.
ii. Local streets and roads funds are to be distributed by a formula based on 50%
on proportionate dwelling units and 50% on 2009 Measure A revenues
generated within each jurisdiction, as interpreted in Ordinance and direction
provided by CVAG.
c. Palo Verde Valley. To be distributed 100% to local streets and roads.
i. Local streets and roads funds are to be distributed by a formula based on 75%
on proportionate population and 25% on sales tax revenues generated in each
jurisdiction.
5. Accounting Records. Measure A recipients are required to maintain accurate,
complete, and separate accounting records for all sources of the funds they receive.
Small not-for-profit agencies are encouraged but not required to maintain separate
accounting records as long as Measure A receipts, related revenues, and
expenditures can be readily identified. If RCTC’s independent auditors are unable to
readily identify which funds are being used for expenditures, then the agency will be
required to maintain separate accounting records and cash accounts if they are to
continue receiving Measure A allocations. Any agency which maintains poor
accounting records will receive funding allocations on a reimbursement basis only.
(Policy adopted May 12, 1993)
6. Interfund Borrowing. Interfund borrowing from Measure A funding sources to
another local jurisdiction fund is strictly prohibited. Cities and agencies must maintain
sufficient cash balances so as not to impair their Measure A funds. Evidence of
interfund borrowing or impaired cash balances will result in the city or agency receiving
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funds from RCTC on a reimbursement basis only after any existing city or agency
reserves of prior Commission funds have been fully depleted. (Policy adopted May
12, 1993)
7. Interest Income Allocations. Interest on Measure A funds shall accrue separately
for all of RCTC’s programs as defined in the text of Measure A. This interest allocation
policy is applicable to the entire County, and such allocations shall be made monthly.
Interest earned on unexpended Measure A monies should be recorded in the Measure
A fund established by a local government or other agency receiving local streets and
roads or specialized transit monies. As these funds are restricted, the related interest
earned should be restricted as required by governmental regulations and other
transportation funding including the Transportation Act. (Policy adopted May 8, 1991
and May 12, 1993)
8. Accumulated Deficits. Accumulated funding source deficits are the responsibility of
the local jurisdiction. RCTC will consider allocating additional funds for such deficits
when justifiable on a case-by-case basis. (Policy adopted May 12, 1993)
9. Budget Variances. Significant budget variances should be avoided. All local
jurisdictions are required to compare the budget to actual results and make mid-year
revisions as needed. (Policy adopted May 12, 1993)
10. Unexpended Monies. Whenever the annual fiscal audit or the proposed update of
the Five Year Capital Improvement Program of a local agency shows a Measure A
Local Streets and Road Program carryover balance in excess of three (3) times the
annual allocation to an agency, Commission staff will:
a. Meet with the local agency to have them explain the reason for the carryover and
explore alternatives for moving projects faster, and
b. Present a report of their findings to RCTC’s Budget and Finance Committee to
determine if any further action should be considered and proposed to the full
Commission.
(Policy included in December 13, 1995 revisions to the RCTC Program and Funding
Guide)
J. Transit Compliance Requirements
The auditors should review the TDA regulations for Local Transportation Fund and State
Transit Assistance funding. California Code Section 6664 discusses the fiscal and
compliance audits of all claimants, Section 6666 provides the compliance audit tasks for
non-transit claimants, and Section 6667 provides the compliance audit tasks for transit
claimants. The TDA Statutes and California Code of Regulation Guidebook is available at:
https://dot.ca.gov/-/media/dot-media/programs/rail-mass-
transportation/documents/f0009844-tda-07-2018-a11y.pdf.
California Department of Transportation program guidelines for State of Good Repair
funds received through RCTC are located at:
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https://dot.ca.gov/-/media/dot-media/programs/rail-mass-
transportation/documents/sgr/202008-sgr-final-guidelines-a11y.pdf
Proposition 1B accountability requirements for Public Transportation Modernization,
Improvement and Service Enhancement Account (PTMISEA) funds received through
Caltrans are located at:
https://dot.ca.gov/-/media/dot-media/programs/rail-mass-
transportation/documents/ptmisea/201910-ptmisea-guidelines-a11y.pdf
Proposition 1B guidelines for Transit System Safety, Security, and Disaster Response
Account (TSSSDRA) funds received through CalOES are located at:
https://www.caloes.ca.gov/GrantsManagementSite/Documents/FY 2016-17 HR
Guidance with Allocations.pdf#search=TSSSDRA guidelines
LCTOP program guidelines for funds received through Caltrans are located at:
https://dot.ca.gov/-/media/dot-media/programs/rail-mass-
transportation/documents/lctop/201909-lctop-fy19-20-guidelines-a11y.pdf
K. MSCHP Compliance Requirements
The auditors should review the MSHCP Member Agency requirements in various implementation
documents which are available at:
MSHCP Implementation Agreement Ordinance (for current procedures, see model
ordinance beginning on page 347 of link)
https://www.wrc-rca.org/Permit_Docs/MSHCP/MSHCP-Volume3.pdf
MSHCP Implementation Manual (effective for FY 2021/22 agreed-upon procedures)
https://www.wrc-
rca.org//Permit_Docs/MSHCP/MSHCP%20Mitigation%20Fee%20Implementation%20M
anual%20Final.pdf
End of Statement of Services
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17336.00000\8752982.1
EXHIBIT "B"
COMPENSATION
[TO BE INSERTED BEHIND THIS PAGE]
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(Amounts subject to rounding
differences)
FIRM PROJECT TASKS/ROLE COST
BCA Watson Rice LLP2 Audit and Attestation Services 373,847$
-
373,847$
TASK NUMBER TASK DESCRIPTION COST
TDA Article 3/Bicycle and Pedestrian2 Audit Services -$
TDA Article 4/Transit Audit Services -
Measure A Local Streets and Roads Agreed-Upon Procedures Attestation Services 51,967
Measure A Specialized Transit2 Agreed-Upon Procedures Attestation Services 263,880
MSHCP Member Agencies Agreed-Upon Procedures Attestation Services 58,000
373,847
-
373,847$
FISCAL YEAR PROJECT COST
FY 2020/212 Audit and Attestation Services 63,595$
FY 2021/222 Audit and Attestation Services 59,220
FY 2022/232 Audit and Attestation Services 60,635
FY 2023/24 (Option Year 1)2 Audit and Attestation Services 62,050
FY 2024/25 (Option Year 2)2 Audit and Attestation Services 63,465
FY 2025/26 (Option Year 3)2 Audit and Attestation Services 64,881
373,847
373,847$ TOTAL COSTS
1 Commission authorization pertains to total contract award amount. Compensation adjustments between consultants may occur;
however, the maximum total compensation authorized may not be exceeded.
2 TDA Article 3/Bicycle and Pedestrian audits and Measure A Specialized Transit agreed-upon procedures will be determined annually
based on TDA claimants and Measure A disbursements; accordingly, amounts are estimated. This estimate assumes zero (0) annual
TDA Article 3/Bicycle and Pedestrian audits and sixteen (16) Measure A Specialized Transit attestation services for FY 2020/21 and
fourteen (14) thereafter.
SUBTOTAL
OTHER DIRECT COSTS
TOTAL COSTS
SUBTOTAL
EXHIBIT "B"
COMPENSATION SUMMARY1
Prime Consultant:
OTHER DIRECT COSTS
TOTAL COSTS
EXHIBIT B-1
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Agreement No. 21-19-035-00
RIVERSIDE COUNTY TRANSPORTATION COMMISSION
AGREEMENT FOR AUDIT AND ATTESTATION SERVICES
FOR THE WESTERN RIVERSIDE COUNTY
MEASURE A RECIPIENTS AND
TRANSPORTATION DEVELOPMENT ACT CLAIMANTS
OF THE
RIVERSIDE COUNTY TRANSPORTATION COMMISSION
AND THE MEMBER AGENCIES
OF THE
WESTERN RIVERSIDE COUNTY
REGIONAL CONSERVATION AUTHORITY
WITH BROWN ARMSTRONG ACCOUNTANCY CORPORATION
1. PARTIES AND DATE.
This Agreement is made and entered into this day of , 2021, by and
between the RIVERSIDE COUNTY TRANSPORTATION COMMISSION ("the Co-
mmission") and BROWN ARMSTRONG ACCOUTANCY CORPORATION
("Consultant"), a CORPORATION.
2. RECITALS.
2.1 Consultant desires to perform and assume responsibility for the
provision of certain professional consulting services required by Commission on the terms
and conditions set forth in this Agreement. Consultant represents that it is a professional
consultant, experienced in providing audit services to public clients, is licensed in the
State of California, and is familiar with the plans of Commission.
2.2 Commission desires to engage Consultant to render certain audit
and attestation services for the Commission ("Project") as set forth herein.
3. TERMS.
3.1 General Scope of Services. Consultant promises and agrees to
furnish to Commission all labor materials, tools, equipment, services, and incidental and
customary work necessary to fully and adequately provide professional consulting
services and advice on various issues affecting the decisions of Commission regarding
the Project and on other programs and matters affecting Commission, hereinafter referred
to as "Services". The Services are more particularly described in Exhibit "A" attached
hereto and incorporated herein by reference. All Services shall be subject to, and
performed in accordance with, this Agreement, the exhibits attached hereto and
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incorporated herein by reference, and all applicable local, state, and federal laws, rules
and regulations.
3.2 Term. The term of this Agreement shall be from the date first
specified above to June 30, 2024, unless earlier terminated as provided herein. The
Commission, at its sole discretion, may extend this Agreement for three (3) additional
single year terms through June 30, 2027. Consultant shall complete the Services within
the term of this Agreement and shall meet any other established schedules and
deadlines.
3.3 Schedule of Services. Consultant shall perform the Services
expeditiously, within the term of this Agreement, and in accordance with the Audit
Schedule set forth in Exhibit "A" attached hereto and incorporated herein by reference.
Consultant represents that it has the professional and technical personnel required to
perform the Services in conformance with such conditions. In order to facilitate
Consultant's conformance with the Schedule, the Commission shall respond to
Consultant's submittals in a timely manner. Upon request of the Commission, Consultant
shall provide a more detailed schedule of anticipated performance to meet the Audit
Schedule.
3.4 Independent Contractor; Control and Payment of Subordinates. The
Services shall be performed by Consultant under its supervision. Consultant will
determine the means, method and details of performing the Services subject to the
requirements of this Agreement. Commission retains Consultant on an independent
contractor basis and Consultant is not an employee of Commission. Consultant retains
the right to perform similar or different services for others during the term of this
Agreement. Any additional personnel performing the Services under this Agreement on
behalf of Consultant shall not be employees of Commission and shall at all times be under
Consultant's exclusive direction and control. Consultant shall pay all wages, salaries, and
other amounts due such personnel in connection with their performance of Services under
this Agreement and as required by law. Consultant shall be responsible for all reports
and obligations respecting such additional personnel, including, but not limited to: social
security taxes, income tax withholding, unemployment insurance, and workers'
compensation insurance.
3.5 Conformance to Applicable Requirements. All work prepared by
Consultant shall be subject to the approval of Commission.
3.6 Substitution of Key Personnel. Consultant has represented to
Commission that certain key personnel will perform and coordinate the Services under
this Agreement. Should one or more of such personnel become unavailable, Consultant
may substitute other personnel of at least equal competence and experience upon written
approval of Commission. In the event that Commission and Consultant cannot agree as
to the substitution of key personnel, Commission shall be entitled to terminate this
Agreement for cause, pursuant to provisions of Section 3.16 of this Agreement. The key
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personnel for performance of this Agreement are as follows: Eric H. Xin, Thomas M.
Young, Melissa L. Cabezzas, Ken Gill, Alex Medina, and Lorena Matias.
3.7 Commission’s Representative. Commission hereby designates the
Chief Financial Officer, or his or her designee, to act as its representative for the
performance of this Agreement ("Commission’s Representative"). Commission's
representative shall have the power to act on behalf of Commission for all purposes under
this Agreement. Consultant shall not accept direction from any person other than
Commission's Representative or his or her designee.
3.8 Consultant’s Representative. Consultant hereby designates Eric H.
Xin, or his or her designee, to act as its representative for the performance of this
Agreement ("Consultant’s Representative"). Consultant’s Representative shall have full
authority to represent and act on behalf of the Consultant for all purposes under this
Agreement. The Consultant’s Representative shall supervise and direct the Services,
using his or her best skill and attention, and shall be responsible for all means, methods,
techniques, sequences and procedures and for the satisfactory coordination of all
portions of the Services under this Agreement.
3.9 Coordination of Services. Consultant agrees to work closely with
Commission staff in the performance of Services and shall be available to Commission's
staff, consultants and other staff at all reasonable times.
3.10 Standard of Care; Licenses. Consultant shall perform the Services
under this Agreement in a skillful and competent manner, consistent with the standard
generally recognized as being employed by professionals in the same discipline in the
State of California. Consultant represents and maintains that it is skilled in the
professional calling necessary to perform the Services. Consultant warrants that all
employees and subcontractors shall have sufficient skill and experience to perform the
Services assigned to them. Finally, Consultant represents that it, its employees and
subcontractors have all licenses, permits, qualifications and approvals of whatever nature
that are legally required to perform the Services and that such licenses and approvals
shall be maintained throughout the term of this Agreement. Consultant shall perform, at
its own cost and expense and without reimbursement from Commission, any Services
necessary to correct errors or omissions which are caused by the Consultant’s failure to
comply with the standard of care provided for herein, and shall be fully responsible to the
Commission for all damages and other liabilities provided for in the indemnification
provisions of this Agreement arising from the Consultant’s errors and omissions.
3.11 Laws and Regulations. Consultant shall keep itself fully informed of
and in compliance with all local, state and federal laws, rules and regulations in any
manner affecting the performance of the Project or the Services, including all Cal/OSHA
requirements, and shall give all notices required by law. Consultant shall be liable for all
violations of such laws and regulations in connection with Services. If the Consultant
performs any work knowing it to be contrary to such laws, rules and regulations and
without giving written notice to Commission, Consultant shall be solely responsible for all
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costs arising therefrom. Consultant shall defend, indemnify and hold Commission, its
officials, directors, officers, employees and agents free and harmless, pursuant to the
indemnification provisions of this Agreement, from any claim or liability arising out of any
failure or alleged failure to comply with such laws, rules or regulations.
3.12 Insurance.
3.12.1 Time for Compliance. Consultant shall not commence work
under this Agreement until it has provided evidence satisfactory to the Commission that
it has secured all insurance required under this section, in a form and with insurance
companies acceptable to the Commission. In addition, Consultant shall not allow any
subcontractor to commence work on any subcontract until it has secured all insurance
required under this section.
3.12.2 Minimum Requirements. Consultant shall, at its expense,
procure and maintain for the duration of the Agreement insurance against claims for
injuries to persons or damages to property which may arise from or in connection with the
performance of the Agreement by the Consultant, its agents, representatives, employees
or subcontractors. Consultant shall also require all of its subcontractors to procure and
maintain the same insurance for the duration of the Agreement. Such insurance shall
meet at least the following minimum levels of coverage:
(A) Minimum Scope of Insurance. Coverage shall be at
least as broad as the latest version of the following: (1) General Liability: Insurance
Services Office Commercial General Liability coverage (occurrence form CG 0001 or
exact equivalent); (2) Automobile Liability: Insurance Services Office Business Auto
Coverage (form CA 0001, code 1 (any auto) or exact equivalent); and (3) Workers’
Compensation and Employer’s Liability: Workers’ Compensation insurance as required
by the State of California and Employer’s Liability Insurance.
(B) Minimum Limits of Insurance. Consultant shall
maintain limits no less than: (1) General Liability: $2,000,000 per occurrence for bodily
injury, personal injury and property damage. If Commercial General Liability Insurance
or other form with general aggregate limit is used, either the general aggregate limit shall
apply separately to this Agreement/location or the general aggregate limit shall be twice
the required occurrence limit; (2) Automobile Liability: $1,000,000 per accident for bodily
injury and property damage; and (3) if Consultant has an employees, Workers’
Compensation and Employer’s Liability: Workers’ Compensation limits as required by the
Labor Code of the State of California. Employer’s Practices Liability limits of $1,000,000
per accident.
3.12.3 Professional Liability. Consultant shall procure and maintain,
and require its sub-consultants to procure and maintain, for a period of five (5) years
following completion of the Project, errors and omissions liability insurance appropriate to
their profession. Such insurance shall be in an amount not less than $1,000,000 per
claim. This insurance shall be endorsed to include contractual liability applicable to this
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Agreement and shall be written on a policy form coverage specifically designed to protect
against acts, errors or omissions of the Consultant. “Covered Professional Services” as
designated in the policy must specifically include work performed under this Agreement.
The policy must “pay on behalf of” the insured and must include a provision establishing
the insurer's duty to defend.
3.12.4 Insurance Endorsements. The insurance policies shall
contain the following provisions, or Consultant shall provide endorsements on forms
approved by the Commission to add the following provisions to the insurance policies:
(A) General Liability.
(i) Commercial General Liability Insurance must
include coverage for (1) bodily injury and property damage; (2) personal Injury/Advertising
injury; (3) premises/operations liability; (4) products/completed operations liability; (5)
aggregate limits that apply per project; (6) explosion, collapse and underground (UCX)
exclusion deleted; (7) contractual liability with respect to this Agreement; (8) broad form
property damage; and (9) independent consultants coverage.
(ii) The policy shall contain no endorsements or
provisions limiting coverage for (1) contractual liability; (2) cross liability exclusion for
claims or suits by one insured against another; or (3) contain any other exclusion contrary
to this Agreement.
(iii) The policy shall give the Commission, its
directors, officials, officers, employees, and agents insured status using ISO endorsement
forms 20 10 10 01 and 20 37 10 01, or endorsements providing the exact same coverage.
(iv) The additional insured coverage under the
policy shall be “primary and non-contributory” and will not seek contribution from the
Commission’s insurance or self-insurance and shall be at least as broad as CG 20 01 04
13, or endorsements providing the exact same coverage.
(B) Automobile Liability. The automobile liability policy
shall be endorsed to state that: (1) the Commission, its directors, officials, officers,
employees and agents shall be covered as additional insureds with respect to the
ownership, operation, maintenance, use, loading or unloading of any auto owned, leased,
hired or borrowed by the Consultant or for which the Consultant is responsible; and (2)
the insurance coverage shall be primary insurance as respects the Commission, its
directors, officials, officers, employees and agents, or if excess, shall stand in an
unbroken chain of coverage excess of the Consultant’s scheduled underlying coverage.
Any insurance or self-insurance maintained by the Commission, its directors, officials,
officers, employees and agents shall be excess of the Consultant’s insurance and shall
not be called upon to contribute with it in any way.
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(C) Workers’ Compensation and Employers Liability
Coverage.
(i) Consultant certifies that he/she is aware of the
provisions of Section 3700 of the California Labor Code which requires every employer
to be insured against liability for workers’ compensation or to undertake self-insurance in
accordance with the provisions of that code, and he/she will comply with such provisions
before commencing work under this Agreement.
(ii) The insurer shall agree to waive all rights of
subrogation against the Commission, its directors, officials, officers, employees and
agents for losses paid under the terms of the insurance policy which arise from work
performed by the Consultant.
(D) All Coverages.
(i) Defense costs shall be payable in addition to the
limits set forth hereunder.
(ii) Requirements of specific coverage or limits
contained in this section are not intended as a limitation on coverage, limits, or other
requirement, or a waiver of any coverage normally provided by any insurance. It shall be
a requirement under this Agreement that any available insurance proceeds broader than
or in excess of the specified minimum insurance coverage requirements and/or limits set
forth herein shall be available to the Commission, its directors, officials, officers,
employees and agents as additional insureds under said policies. Furthermore, the
requirements for coverage and limits shall be (1) the minimum coverage and limits
specified in this Agreement; or (2) the broader coverage and maximum limits of coverage
of any insurance policy or proceeds available to the named insured; whichever is greater.
(iii) The limits of insurance required in this
Agreement may be satisfied by a combination of primary and umbrella or excess
insurance. Any umbrella or excess insurance shall contain or be endorsed to contain a
provision that such coverage shall also apply on a primary and non-contributory basis for
the benefit of the Commission (if agreed to in a written contract or agreement) before the
Commission’s own insurance or self-insurance shall be called upon to protect it as a
named insured. The umbrella/excess policy shall be provided on a “following form” basis
with coverage at least as broad as provided on the underlying policy(ies).
(iv) Consultant shall provide the Commission at
least thirty (30) days prior written notice of cancellation of any policy required by this
Agreement, except that the Consultant shall provide at least ten (10) days prior written
notice of cancellation of any such policy due to non-payment of premium. If any of the
required coverage is cancelled or expires during the term of this Agreement, the
Consultant shall deliver renewal certificate(s) including the General Liability Additional
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Insured Endorsement to the Commission at least ten (10) days prior to the effective date
of cancellation or expiration.
(v) The retroactive date (if any) of each policy is to
be no later than the effective date of this Agreement. Consultant shall maintain such
coverage continuously for a period of at least three years after the completion of the work
under this Agreement. Consultant shall purchase a one (1) year extended reporting
period A) if the retroactive date is advanced past the effective date of this Agreement; B)
if the policy is cancelled or not renewed; or C) if the policy is replaced by another claims-
made policy with a retroactive date subsequent to the effective date of this Agreement.
(vi) The foregoing requirements as to the types and
limits of insurance coverage to be maintained by Consultant, and any approval of said
insurance by the Commission, is not intended to and shall not in any manner limit or
qualify the liabilities and obligations otherwise assumed by the Consultant pursuant to
this Agreement, including but not limited to, the provisions concerning indemnification.
(vii) If at any time during the life of the Agreement,
any policy of insurance required under this Agreement does not comply with these
specifications or is canceled and not replaced, Commission has the right but not the duty
to obtain the insurance it deems necessary and any premium paid by Commission will be
promptly reimbursed by Consultant or Commission will withhold amounts sufficient to pay
premium from Consultant payments. In the alternative, Commission may cancel this
Agreement. The Commission may require the Consultant to provide complete copies of
all insurance policies in effect for the duration of the Project.
(viii) Neither the Commission nor any of its directors,
officials, officers, employees or agents shall be personally responsible for any liability
arising under or by virtue of this Agreement.
Each insurance policy required by this Agreement shall
be endorsed to state that:
3.12.5 Deductibles and Self-Insurance Retentions. Any deductibles
or self-insured retentions must be declared to and approved by the Commission. If the
Commission does not approve the deductibles or self-insured retentions as presented,
Consultant shall guarantee that, at the option of the Commission, either: (1) the insurer
shall reduce or eliminate such deductibles or self-insured retentions as respects the
Commission, its directors, officials, officers, employees and agents; or, (2) the Consultant
shall procure a bond guaranteeing payment of losses and related investigation costs,
claims and administrative and defense expenses.
3.12.6 Acceptability of Insurers. Insurance is to be placed with
insurers with a current A.M. Best’s rating no less than A:VIII, licensed to do business in
California, and satisfactory to the Commission.
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3.12.7 Verification of Coverage. Consultant shall furnish
Commission with original certificates of insurance and endorsements effecting coverage
required by this Agreement on forms satisfactory to the Commission. The certificates and
endorsements for each insurance policy shall be signed by a person authorized by that
insurer to bind coverage on its behalf. All certificates and endorsements must be received
and approved by the Commission before work commences. The Commission reserves
the right to require complete, certified copies of all required insurance policies, at any
time.
3.12.8 Subconsultant Insurance Requirements. Consultant shall not
allow any subcontractors or subconsultants to commence work on any subcontract until
they have provided evidence satisfactory to the Commission that they have secured all
insurance required under this section. Policies of commercial general liability insurance
provided by such subcontractors or subconsultants shall be endorsed to name the
Commission as an additional insured using ISO form CG 20 38 04 13 or an endorsement
providing the exact same coverage. If requested by Consultant, the Commission may
approve different scopes or minimum limits of insurance for particular subcontractors or
subconsultants.
3.13 Safety. Consultant shall execute and maintain its work so as to avoid
injury or damage to any person or property. In carrying out its Services, the Consultant
shall at all times be in compliance with all applicable local, state and federal laws, rules
and regulations, and shall exercise all necessary precautions for the safety of employees
appropriate to the nature of the work and the conditions under which the work is to be
performed. Safety precautions as applicable shall include, but shall not be limited to: (A)
adequate life protection and life saving equipment and procedures; (B) instructions in
accident prevention for all employees and subcontractors, such as safe walkways,
scaffolds, fall protection ladders, bridges, gang planks, confined space procedures,
trenching and shoring, equipment and other safety devices, equipment and wearing
apparel as are necessary or lawfully required to prevent accidents or injuries; and (C)
adequate facilities for the proper inspection and maintenance of all safety measures.
3.14 Fees and Payment.
3.14.1 Compensation. Consultant shall receive compensation,
including authorized reimbursements, for all Services rendered under this Agreement at
the rates set forth in Exhibit "B" attached hereto. The total compensation shall not exceed
Six Hundred Twenty-Two Thousand Seventy-Seven Dollars ($622,077) without written
approval of Commission's Executive Director (“Total Compensation”). Extra Work may
be authorized, as described below, and if authorized, will be compensated at the rates
and manner set forth in this Agreement.
3.14.2 Payment of Compensation. Consultant shall submit to
Commission a monthly statement which indicates work completed and hours of Services
rendered by Consultant. The statement shall describe the amount of Services and
supplies provided since the initial commencement date, or since the start of the
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subsequent billing periods, as appropriate, through the date of the statement.
Commission shall, within 45 days of receiving such statement, review the statement and
pay all approved charges thereon.
3.14.3 Reimbursement for Expenses. Consultant shall not be
reimbursed for any expenses unless authorized in writing by Commission.
3.14.4 Extra Work. At any time during the term of this Agreement,
Commission may request that Consultant perform Extra Work. As used herein, "Extra
Work" means any work which is determined by Commission to be necessary for the
proper completion of the Project, but which the parties did not reasonably anticipate would
be necessary at the execution of this Agreement. Consultant shall not perform, nor be
compensated for, Extra Work without written authorization from Commission's Executive
Director.
3.15 Accounting Records. Consultant shall maintain complete and
accurate records with respect to all costs and expenses incurred and fees charged under
this Agreement. All such records shall be clearly identifiable. Consultant shall allow a
representative of Commission during normal business hours to examine, audit, and make
transcripts or copies of such records and any other documents created pursuant to this
Agreement. Consultant shall allow inspection of all work, data, documents, proceedings,
and activities related to the Agreement for a period of three (3) years from the date of final
payment under this Agreement.
3.16 Termination of Agreement.
3.16.1 Grounds for Termination. Commission may, by written notice
to Consultant, terminate the whole or any part of this Agreement at any time and without
cause by giving written notice to Consultant of such termination, and specifying the
effective date thereof. Upon termination, Consultant shall be compensated only for those
services which have been fully and adequately rendered to Commission through the
effective date of the termination, and Consultant shall be entitled to no further
compensation. Consultant may not terminate this Agreement except for cause.
3.16.2 Effect of Termination. If this Agreement is terminated as
provided herein, Commission may require Consultant to provide all finished or unfinished
Documents and Data, as defined below, and other information of any kind prepared by
Consultant in connection with the performance of Services under this Agreement.
Consultant shall be required to provide such document and other information within fifteen
(15) days of the request.
3.16.3 Additional Services. In the event this Agreement is terminated
in whole or in part as provided herein, Commission may procure, upon such terms and in
such manner as it may determine appropriate, services similar to those terminated.
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3.17 Delivery of Notices. All notices permitted or required under this
Agreement shall be given to the respective parties at the following address, or at such
other address as the respective parties may provide in writing for this purpose:
CONSULTANT: COMMISSION:
Brown Armstrong Accountancy Corp. Riverside County
4200 Truxtun Avenue Transportation Commission
Suite 300 4080 Lemon Street, 3rd Floor
Bakersfield, CA 93309 Riverside, CA 92501
Attn: Eric H. Xin Attn: Executive Director
Such notice shall be deemed made when personally delivered or when
mailed, forty-eight (48) hours after deposit in the U.S. Mail, first class postage prepaid
and addressed to the party at its applicable address. Actual notice shall be deemed
adequate notice on the date actual notice occurred, regardless of the method of service.
3.18 Ownership of Materials/Confidentiality.
3.18.1 Documents & Data. This Agreement creates an exclusive and
perpetual license for Commission to copy, use, modify, reuse, or sub-license any and all
copyrights and designs embodied in plans, specifications, studies, drawings, estimates,
materials, data and other documents or works of authorship fixed in any tangible medium
of expression, including but not limited to, physical drawings or data magnetically or
otherwise recorded on computer diskettes, which are prepared or caused to be prepared
by Consultant under this Agreement (“Documents & Data”).
Consultant shall require all subcontractors to agree in writing that
Commission is granted an exclusive and perpetual license for any Documents & Data the
subcontractor prepares under this Agreement.
Consultant represents and warrants that Consultant has the legal
right to grant the exclusive and perpetual license for all such Documents & Data.
Consultant makes no such representation and warranty in regard to Documents & Data
which were prepared by design professionals other than Consultant or provided to
Consultant by the Commission.
Commission shall not be limited in any way in its use of the
Documents & Data at any time, provided that any such use not within the purposes
intended by this Agreement shall be at Commission’s sole risk.
All programs, working papers, files and other materials of the
Consultant made pursuant to this Agreement shall remain the property of the Consultant.
The Commission will have access to this material at any time. All reports delivered by the
Consultant and its subcontractors pursuant to the Agreement shall become the property
of the Commission without restriction or limitation on their use and shall be made available
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upon request, to the Commission at any time. Original copies of the deliverable reports
shall be delivered to the Commission upon completion of the Services or termination of
the Services. The Consultant shall be permitted to retain copies of such items for the
furtherance of its technical proficiency; however, publication of this material is subject to
the written approval of the Commission.
3.18.2 Intellectual Property. In addition, Commission shall have and
retain all right, title and interest (including copyright, patent, trade secret and other
proprietary rights) in all plans, specifications, studies, drawings, estimates, materials,
data, computer programs or software and source code, enhancements, documents, and
any and all works of authorship fixed in any tangible medium or expression, including but
not limited to, physical drawings or other data magnetically or otherwise recorded on
computer media (“Intellectual Property”) prepared or developed by or on behalf of
Consultant under this Agreement as well as any other such Intellectual Property prepared
or developed by or on behalf of Consultant under this Agreement.
The Commission shall have and retain all right, title and interest in
Intellectual Property developed or modified under this Agreement whether or not paid for
wholly or in part by Commission, whether or not developed in conjunction with Consultant,
and whether or not developed by Consultant. Consultant will execute separate written
assignments of any and all rights to the above referenced Intellectual Property upon
request of Commission.
Consultant shall also be responsible to obtain in writing separate
written assignments from any subcontractors or agents of Consultant of any and all right
to the above referenced Intellectual Property. Should Consultant, either during or
following termination of this Agreement, desire to use any of the above-referenced
Intellectual Property, it shall first obtain the written approval of the Commission.
All materials and documents which were developed or prepared by
the Consultant for general use prior to the execution of this Agreement and which are not
the copyright of any other party or publicly available and any other computer applications,
shall continue to be the property of the Consultant. However, unless otherwise identified
and stated prior to execution of this Agreement, Consultant represents and warrants that
it has the right to grant the exclusive and perpetual license for all such Intellectual Property
as provided herein.
Commission further is granted by Consultant a non-exclusive and
perpetual license to copy, use, modify or sub-license any and all Intellectual Property
otherwise owned by Consultant which is the basis or foundation for any derivative,
collective, insurrectional, or supplemental work created under this Agreement.
3.18.3 Confidentiality. All ideas, memoranda, specifications, plans,
procedures, drawings, descriptions, computer program data, input record data, written
information, and other Documents and Data either created by or provided to Consultant
in connection with the performance of this Agreement shall be held confidential by
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Consultant. Such materials shall not, without the prior written consent of Commission, be
used by Consultant for any purposes other than the performance of the Services. Nor
shall such materials be disclosed to any person or entity not connected with the
performance of the Services or the Project. Nothing furnished to Consultant which is
otherwise known to Consultant or is generally known, or has become known, to the
related industry shall be deemed confidential. Consultant shall not use Commission's
name or insignia, photographs of the Project, or any publicity pertaining to the Services
or the Project in any magazine, trade paper, newspaper, television or radio production or
other similar medium without the prior written consent of Commission.
3.18.4 Infringement Indemnification. Consultant shall defend,
indemnify and hold the Commission, its directors, officials, officers, employees,
volunteers and agents free and harmless, pursuant to the indemnification provisions of
this Agreement, for any alleged infringement of any patent, copyright, trade secret, trade
name, trademark, or any other proprietary right of any person or entity in consequence of
the use on the Project by Commission of the Documents & Data, including any method,
process, product, or concept specified or depicted.
3.19 Cooperation; Further Acts. The Parties shall fully cooperate with one
another, and shall take any additional acts or sign any additional documents as may be
necessary, appropriate or convenient to attain the purposes of this Agreement.
3.20 Attorney's Fees. If either party commences an action against the
other party, either legal, administrative or otherwise, arising out of or in connection with
this Agreement, the prevailing party in such litigation shall be entitled to have and recover
from the losing party reasonable attorney's fees and costs of such actions.
3.21 Indemnification. Consultant shall defend, indemnify and hold the
Commission, its directors, officials, officers, agents, consultants, employees and
volunteers free and harmless from any and all claims, demands, causes of action, costs,
expenses, liabilities, losses, damages or injuries, in law or in equity, to property or
persons, including wrongful death, in any manner arising out of or incident to any alleged
negligent acts, omissions or willful misconduct of the Consultant, its officials, officers,
employees, agents, consultants, and contractors arising out of or in connection with the
performance of the Services, the Project or this Agreement, including without limitation,
the payment of all consequential damages, attorneys fees and other related costs and
expenses. Consultant shall defend, at Consultant’s own cost, expense and risk, any and
all such aforesaid suits, actions or other legal proceedings of every kind that may be
brought or instituted against the Commission, its directors, officials, officers, agents,
consultants, employees and volunteers. Consultant shall pay and satisfy any judgment,
award or decree that may be rendered against the Commission or its directors, officials,
officers, agents, consultants, employees and volunteers, in any such suit, action or other
legal proceeding. Consultant shall reimburse the Commission and its directors, officials,
officers, agents, consultants, employees and volunteers, for any and all legal expenses
and costs, including reasonable attorney’s fees, incurred by each of them in connection
therewith or in enforcing the indemnity herein provided. Consultant’s obligation to
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indemnity shall not be restricted to insurance proceeds, if any, received by the
Commission or its directors, officials, officers, agents, consultants, employees and
volunteers. This Section 3.21 shall survive any expiration or termination of this
Agreement.
3.22 Entire Agreement. This Agreement contains the entire Agreement
of the parties with respect to the subject matter hereof, and supersedes all prior
negotiations, understandings or agreements. This Agreement may only be
supplemented, amended, or modified by a writing signed by both parties.
3.23 Governing Law. This Agreement shall be governed by the laws of
the State of California. Venue shall be in Riverside County.
3.24 Time of Essence. Time is of the essence for each and every
provision of this Agreement.
3.25 Commission's Right to Employ Other Consultants. The Commission
reserves the right to employ other consultants in connection with this Project.
3.26 Successors and Assigns. This Agreement shall be binding on the
successors and assigns of the parties, and shall not be assigned by Consultant without
the prior written consent of Commission.
3.27 Prohibited Interests and Conflicts.
3.27.1 Solicitation. Consultant maintains and warrants that it has not
employed nor retained any company or person, other than a bona fide employee working
solely for Consultant, to solicit or secure this Agreement. Further, Consultant warrants
that it has not paid nor has it agreed to pay any company or person, other than a bona
fide employee working solely for Consultant, any fee, commission, percentage, brokerage
fee, gift or other consideration contingent upon or resulting from the award or making of
this Agreement. For breach or violation of this warranty, Commission shall have the right
to rescind this Agreement without liability.
3.27.2 Conflict of Interest. For the term of this Agreement, no
member, officer or employee of Commission, during the term of his or her service with
Commission, shall have any direct interest in this Agreement, or obtain any present or
anticipated material benefit arising therefrom.
3.27.3 Conflict of Employment. Employment by the Consultant of
personnel currently on the payroll of the Commission shall not be permitted in the
performance of this Agreement, even though such employment may occur outside of the
employee’s regular working hours or on weekends, holidays or vacation time. Further,
the employment by the Consultant of personnel who have been on the Commission
payroll within one year prior to the date of execution of this Agreement, where this
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employment is caused by and or dependent upon the Consultant securing this or related
Agreements with the Commission, is prohibited.
3.27.4 Employment Adverse to the Commission. Consultant shall
notify the Commission, and shall obtain the Commission’s written consent, prior to
accepting work to assist with or participate in a third-party lawsuit or other legal or
administrative proceeding against the Commission during the term of this Agreement.
3.28 Equal Opportunity Employment. Consultant represents that it is an
equal opportunity employer and it shall not discriminate against any employee or
applicant for employment because of race, religion, color, national origin, ancestry, sex
or age. Such non-discrimination shall include, but not be limited to, all activities related
to initial employment, upgrading, demotion, transfer, recruitment or recruitment
advertising, layoff or termination. Consultant shall also comply with all relevant provisions
of Commission's Disadvantaged Business Enterprise program, Affirmative Action Plan or
other related Commission programs or guidelines currently in effect or hereinafter
enacted.
3.29 Subcontracting. Consultant shall not subcontract any portion of the
work or Services required by this Agreement, except as expressly stated herein, without
prior written approval of the Commission. Subcontracts, if any, shall contain a provision
making them subject to all provisions stipulated in this Agreement.
3.30 Reserved.
3.31 Employment of Apprentices. This Agreement shall not prevent the
employment of properly indentured apprentices in accordance with the California Labor
Code, and no employer or labor union shall refuse to accept otherwise qualified
employees as indentured apprentices on the work performed hereunder solely on the
ground of race, creed, national origin, ancestry, color or sex. Every qualified apprentice
shall be paid the standard wage paid to apprentices under the regulations of the craft or
trade in which he or she is employed and shall be employed only in the craft or trade to
which he or she is registered.
3.32 No Waiver. Failure of Commission to insist on any one occasion
upon strict compliance with any of the terms, covenants or conditions hereof shall not be
deemed a waiver of such term, covenant or condition, nor shall any waiver or
relinquishment of any rights or powers hereunder at any one time or more times be
deemed a waiver or relinquishment of such other right or power at any other time or times.
3.33 Eight-Hour Law. Pursuant to the provisions of the California Labor
Code, eight hours of labor shall constitute a legal day's work, and the time of service of
any worker employed on the work shall be limited and restricted to eight hours during any
one calendar day, and forty hours in any one calendar week, except when payment for
overtime is made at not less than one and one-half the basic rate for all hours worked in
excess of eight hours per day ("Eight-Hour Law"), unless Consultant or the Services are
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not subject to the Eight-Hour Law. Consultant shall forfeit to Commission as a penalty,
$50.00 for each worker employed in the execution of this Agreement by him, or by any
sub-consultant under him, for each calendar day during which such workman is required
or permitted to work more than eight hours in any calendar day and forty hours in any one
calendar week without such compensation for overtime violation of the provisions of the
California Labor Code, unless Consultant or the Services are not subject to the Eight-
Hour Law.
3.34 Subpoenas or Court Orders. Should Consultant receive a subpoena
or court order related to this Agreement, the Services or the Project, Consultant shall
immediately provide written notice of the subpoena or court order to the Commission.
Consultant shall not respond to any such subpoena or court order until notice to the
Commission is provided as required herein, and shall cooperate with the Commission in
responding to the subpoena or court order.
3.35 Survival. All rights and obligations hereunder that by their nature are
to continue after any expiration or termination of this Agreement, including, but not limited
to, the indemnification and confidentiality obligations, and the obligations related to receipt
of subpoenas or court orders, shall survive any such expiration or termination.
3.36 No Third Party Beneficiaries. There are no intended third party
beneficiaries of any right or obligation assumed by the Parties.
3.37 Labor Certification. By its signature hereunder, Consultant certifies
that it is aware of the provisions of Section 3700 of the California Labor Code which
require every employer to be insured against liability for Workers’ Compensation or to
undertake self-insurance in accordance with the provisions of that Code, and agrees to
comply with such provisions before commencing the performance of the Services.
3.38 Counterparts. This Agreement may be signed in counterparts, each
of which shall constitute an original.
3.39 Incorporation of Recitals. The recitals set forth above are true and
correct and are incorporated into this Agreement as though fully set forth herein.
3.40 Invalidity; Severability. If any portion of this Agreement is declared
invalid, illegal, or otherwise unenforceable by a court of competent jurisdiction, the
remaining provisions shall continue in full force and effect.
3.41 Conflicting Provisions. In the event that provisions of any attached
exhibits conflict in any way with the provisions set forth in this Agreement, the language,
terms and conditions contained in this Agreement shall control the actions and obligations
of the Parties and the interpretation of the Parties’ understanding concerning the
performance of the Services.
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3.42 Headings. Article and Section Headings, paragraph captions or
marginal headings contained in this Agreement are for convenience only and shall have
no effect in the construction or interpretation of any provision herein.
3.43 Assignment or Transfer. Consultant shall not assign, hypothecate,
or transfer, either directly or by operation of law, this Agreement or any interest herein,
without the prior written consent of the Commission. Any attempt to do so shall be null
and void, and any assignees, hypothecates or transferees shall acquire no right or interest
by reason of such attempted assignment, hypothecation or transfer.
3.44 Authority to Enter Agreement. Consultant has all requisite power and
authority to conduct its business and to execute, deliver, and perform the Agreement.
Each Party warrants that the individuals who have signed this Agreement have the legal
power, right, and authority to make this Agreement and bind each respective Party.
[SIGNATURES ON FOLLOWING PAGE]
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SIGNATURE PAGE
TO
RIVERSIDE COUNTY TRANSPORTATION COMMISSION
AGREEMENT FOR AUDIT AND ATTESTATION SERVICES
FOR THE WESTERN RIVERSIDE COUNTY
MEASURE A RECIPIENTS AND
TRANSPORTATION DEVELOPMENT ACT CLAIMANTS
OF THE
RIVERSIDE COUNTY TRANSPORTATION COMMISSION
AND THE MEMBER AGENCIES
OF THE
WESTERN RIVERSIDE COUNTY
REGIONAL CONSERVATION AUTHORITY
WITH BROWN ARMSTRONG ACCOUNTANCY CORPORATION
IN WITNESS WHEREOF, this Agreement was executed on the date first
written above.
RIVERSIDE COUNTY BROWN ARMSTRONG
TRANSPORTATION COMMISSION ACCOUNTANCY CORPORATION
By: _________________________ By: ____________________________
Anne Mayer Signature
Executive Director
__________________________
Name
__________________________
Title
Approved as to Form: Attest:
By:____________________________ By: ________________________
Best Best & Krieger LLP Its: Secretary
General Counsel
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EXHIBIT "A"
STATEMENT OF SERVICES
[TO BE INSERTED BEHIND THIS PAGE]
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Statement of Services
A. General
The Riverside County Transportation Commission (RCTC), as the transportation planning agency
for Riverside County and the managing agency for the Western Riverside County Regional
Conservation Authority (RCA), is issuing this Request for Proposal in order to secure services
from a Consultant(s) of certified public accountants to perform for the fiscal years ending June
30, 2021, 2022, and 2023, with the option of performing such services for three (3) additional one-
year terms:
Financial and compliance audits of RCTC’s Transportation Development Act (TDA)
claimants for transit (including funding from Local Transportation Fund (LTF) Article 4,
State Transit Assistance (STA), State of Good Repair (SGR), Low Carbon Transit
Operations Program (LCTOP), and Proposition 1B);
Financial and compliance audits of RCTC’s TDA claimants for bicycle and pedestrian
projects (consisting of funding from LTF Article 3);
Agreed-upon procedures similar to those proposed in Appendix A, Section G, for RCTC’s
Measure A recipients of local streets and roads (LSR) funding;
Agreed-upon procedures similar to those proposed in Appendix A, Section H, for RCTC’s
Measure A recipients of specialized transit funding; and
Agreed upon procedures similar to those proposed in Appendix A, Section I, for RCA’s
Member Agencies related to the collection and remittance of mitigation fees in accordance
with each Member Agency’s Multiple Species Habitat Conservation Plan (MSHCP)
Ordinance (with amendments).
Measure A Agreed Upon Procedures
The Measure A Specialized Transit Agreed-Upon Procedures apply to Western County non-
profit and community organizations awarded funding for specialized transit services for a three-
year period through a competitive call for projects. The FY 2020/21 funding awarded at RCTC’s
April 11, 2018 meeting represents the final year of the FY 2018/19 – 2020/21 Call for Projects.
Staff expects that the awards for the FY 2021/22 – 2023/24 Call for Projects will be approved by
RCTC at the April 14, 2021 meeting, as noted in the FY 2021/22 – 2023/24 Measure A Specialized
Transit Call for Projects Guidelines presented at the January 13, 2021 RCTC meeting. FY
2024/25 – FY 2025/26 funding will be determined by the FY 2024/25 – 2026/27 Call for Projects
to be awarded in Spring 2024.
The Measure A LSR Agreed-Upon Procedures apply to all eligible cities in Riverside County
and the County of Riverside. Measure A LSR funding is allocated and disbursed monthly to the
cities and the County of Riverside, as specified in Measure A. RCTC does not currently anticipate
any incorporations or dis-incorporations of cities that would result in a change in Measure A LSR
recipients. Currently, all cities and the County of Riverside meet the eligibility requirements that
include:
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Participation in the Western County or Coachella Valley Transportation Uniform Mitigation
Fee (TUMF) Program, as applicable;
Participation in the RCA’s MSHCP, as applicable;
Annual submittal of a 5-Year Capital Improvement Plan (CIP) list of projects;
Annual Maintenance of Effort certification; and
Annual Project Status Report for the prior fiscal year CIP.
Transportation Development Act Audits
The TDA Transit audits will be performed for the municipal transit operators in the Western
County cities of Banning, Beaumont, Corona, and Riverside. TDA Transit operating and capital
allocations are approved annually by RCTC in June based on the submittal of each transit
operator’s Short-Range Transit Plan. The transit operators also may unexpended Proposition 1B
funding for capital/rehabilitation and/or security projects received through Caltrans and the
California Office of Emergency Services (CalOES), respectively.
The TDA Bicycle and Pedestrian audits apply to local jurisdictions awarded funding by RCTC
for bicycle and pedestrian projects through a biennial competitive call for projects. Local
jurisdictions generally have two years to complete projects, including those projects approved in
the FY 2019/20 Call for Projects at RCTC’s June 12, 2019 meeting. However, as per revised
guidelines approved by RCTC at its January 13, 2021 meeting effective with the FY 2021/22 Call
for Projects to be awarded at the June 9, 2021 RCTC meeting, local jurisdictions will now have
three years to complete projects. Claimants may request disbursement of their allocations by
RCTC on a reimbursement basis in accordance with RCTC’s policies. Accordingly, the TDA
Bicycle and Pedestrian audits are dependent on claims for expenditures of such funds.
MSHCP Agreed Upon Procedures
The MSHCP Agreed-Upon Procedures are required for local jurisdictions that are signatories to
the Joint Exercise of Powers Agreement forming the RCA. They include the 18 Western County
cities and the County of Riverside. The Member Agencies form the independent RCA Board of
Directors to acquire, administer, operate, and maintain land and facilities to establish habitat
reserves for the conservation and protection of species covered by the MSHCP and to implement
the MSHCP.
At its December 7, 2020 meeting, the RCA adopted the 2020 Nexus Study and increase in Local
Development Mitigation Fees (LDMF). The LDMF increase is effective in two phases. The first
phase, an increase of 50%, is effective July 1, 2021. The second phase, full implementation, is
effective January 1, 2022. Member Agencies must prepare an ordinance and resolution to be
considered and approved by the city council (Board of Supervisors in the case of the County of
Riverside) in time to implement the new fee by July 1, 2021. Final action of the city council/Board
of Supervisors must be no later than May 2, 2021 to ensure the new ordinance takes effect by
July 1, 2021 in accordance with California Government Code Section 66017. Per the
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Implementing Agreement with the cities and the County of Riverside signed, the cities and County
must adopt the ordinance, “in substantially the same form or at a minimum, containing the same
requirements as the model ordinance,” adopted by the RCA Board of Directors.
Anticipated Changes in Audit and Attestation Services
RCTC does not anticipate any change in the local jurisdictions subject to TDA Transit audit and
Measure A LSR attestation services; RCA does not anticipate any change in the local jurisdictions
subject to MSHCP attestation services. The agencies requiring Measure A Specialized Transit
and the local jurisdictions requiring TDA Bicycle and Pedestrian audits will be determined each
year based on actual disbursements.
The Chief Financial Officer is designated as the coordinator of the work and may appoint a
Finance Department staff to coordinate day-to-day oversight. The Chief Financial Officer will
serve as the liaison to the audit oversight committee designated by RCTC and the Executive
Committee designated by RCA.
The audits are to be performed by the Consultant(s) in accordance with generally accepted
auditing standards, including use of the most current version of each of the following standards
and guidelines:
American Institute of Certified Public Accountants audit and attestation standards;
General Accounting Office’s (GAO) Government Auditing Standards;
Measure A conformance requirements (Section I);
Transit requirements (Section J); and
MSHCP requirements (Section K).
B. Scope of Work to be Performed
The selected Consultant(s) will be required to perform the following tasks:
Audit of the transit and transportation financial statements of the jurisdictions receiving
TDA funds in accordance with auditing standards generally accepted in the United States
of America; the standards applicable to financial audits contained in Government Auditing
Standards, issued by the Comptroller General of the United States; the TDA as
summarized in the TDA Guidebook; and SGR, LCTOP, and Proposition 1B audit
guidelines specified by Caltrans and CalOES.
Performance of agreed-upon procedures similar to those listed in Section F solely to assist
RCTC in evaluating the applicable jurisdictions’ Measure A transportation funds and
degree of their compliance with RCTC’s requirements of the Measure A LSR program.
RCTC reserves the right to modify the agreed-upon procedures as deemed necessary to
fulfill its oversight responsibilities for the Measure A LSR program.
Performance of agreed-upon procedures similar to those listed in Section G solely to
assist RCTC in evaluating the applicable jurisdictions’/agencies’ Measure A specialized
transit funds and degree of their compliance with RCTC’s requirements of the Measure A
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specialized transit program. RCTC reserves the right to modify the agreed-upon
procedures as deemed necessary to fulfill its oversight responsibilities for the Measure A
Specialized Transit program.
Performance of agreed-upon procedures similar to those listed in Section H solely to assist
RCA in evaluating if fees are collected and remitted in accordance with each Member
Agency’s MSHCP Mitigation Fee Ordinance (with amendments). RCTC reserves the right
to modify the agreed-upon procedures as deemed necessary to fulfill its oversight
responsibilities for the MSHCP, including RCA changes to the LDMF affecting Member
Agency MSHCP Mitigation Fee Ordinances and adoption of a related resolution.
C. Deliverables
Following completion of the audits and agreed-upon procedures and a review of the draft reports
by RCTC, the Consultant(s) shall issue:
A report on the fair presentation of the financial statements for the TDA claimants in
conformity with generally accepted accounting principles and on compliance and internal
control.
A report on the agreed-upon procedures related to the Measure A recipients of LSR
funding.
A report on the agreed-upon procedures related to the Measure A recipients of specialized
transit funding.
A report on the agreed-upon procedures related to the MSHCP fee collection and
remittance.
Drafts of the reports will be provided to RCTC staff and the applicable TDA claimant, Measure A
recipient, or Member Agency. The Chief Financial Officer or designee shall review and approve
each report prior to issuance.
For each report issued to RCTC, the Consultant shall issue one PDF copy to RCTC and one PDF
to the applicable TDA claimant or Measure A recipient, as applicable.
For each report issued to RCA, the Consultant shall print three (3) copies and issue one PDF
copy to RCA.
Financial and Compliance Reports
The Consultant will submit a financial and compliance report for each TDA audit. The Consultant
will be responsible for the preparation, editing, and printing of all financial and compliance reports,
including the financial statements and notes to the financial statements. Although the Consultant
will prepare the financial statements, management of the TDA Claimant is responsible for the
financial statements.
Agreed-Upon Procedures
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The Consultant will submit a report for each Measure A recipient or Member Agency, as
applicable, listing the procedures performed, results of procedures performed, and findings, if any.
The Consultant will be responsible for preparation, editing, and printing of all agreed-upon
procedure reports.
D. Required Communications
Significant Deficiencies – In the required reports on compliance and internal controls, the
Consultant shall communicate any significant deficiencies found during the audit of the TDA
claimants. A significant deficiency shall be defined as a control deficiency, or combination of
control deficiencies, that adversely affects the entity’s ability to initiate, authorize, record, process,
or report financial data reliably in accordance with generally accepted accounting principles such
that there is more than a remote likelihood that a misstatement of the entity’s financial statements
that is more than inconsequential will not be prevented or detected by the entity’s internal control.
Significant deficiencies that are also material weaknesses shall be identified as such in the report.
Other control deficiencies discovered by the Consultant may be reported in a separate letter to
management, which shall be referred to in the reports on compliance and internal controls.
The report on compliance and internal controls shall include all material instances of
noncompliance. All nonmaterial instances of noncompliance may be reported in a separate
management letter, which shall be referred to in the report on compliance and internal controls.
Irregularities and illegal acts – The Consultant shall be required to make an immediate, written
report of all irregularities and illegal acts or indication of illegal acts of which they become aware
to the jurisdiction/agency and RCTC’s/RCA’s audit oversight committee, Executive Director, and
Chief Financial Officer.
Planning meetings – The Consultant shall meet with RCTC staff at least once a year prior to the
commencement of the audits and agreed-upon procedures.
E. Audit Schedule
The work to be performed at the jurisdictions and agencies shall be arranged by the Consultant
with the individual jurisdiction or agency after the conclusion of a planning meeting with RCTC
and RCTC’s issuance of audit notification letters to each jurisdiction and agency.
The RCTC work should be scheduled for no later than November 15 of each year. Barring
unforeseen circumstances, the Consultant must conduct the work activities and provide all
required reports and information to RCTC no later than December 31 of each year. The TDA
audits are required to be submitted to the State Controller by December 31 of each year; however,
an extension may be granted by RCTC for no more than 90 days. RCTC’s policy for Measure A
reports follows the TDA requirement; however, a formal extension is generally not issued.
RCA is required to annually certify to RCTC by June 30 that local jurisdictions participating in the
MSHCP comply with the MSHCP participation requirements to collect and remit fees in
accordance with each Member Agency’s MSHCP Ordinance (with amendments). Accordingly,
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the RCA requires all agreed-upon procedures reports to be issued by February 28 in the year
following the fiscal year for which the agreed-upon procedures are performed.
The Consultant shall keep RCTC apprised at least monthly on the status of the audits and any
issues which have been encountered. RCTC will provide assistance, to the extent necessary
and/or possible, to resolve such issues. If circumstances outside the control of the Consultant or
RCTC or the RCA arise and the deadline cannot be met, both parties agree to communicate the
circumstances and develop an action plan.
F. Measure A Proposed Local Streets and Roads Agreed-Upon Procedures (Proposed)
1. Review the 2009 Measure A (Ordinance 02-001) compliance requirements. Western
County jurisdictions are required to participate in the Transportation Uniform Mitigation
Fee (TUMF) program and in the Multi-Species Habitat Conservation Plan (MSHCP),
which are administered by the Western Riverside Council of Governments (WRCOG)
and the Western Riverside County Regional Conservation Authority (RCA),
respectively. Coachella Valley jurisdictions are required to participate in the TUMF
program administered by the Coachella Valley Association of Governments (CVAG).
Indicate participation in TUMF and/or MSHCP programs.
2. Obtain from RCTC the approved Five-Year Capital Improvement Plan (CIP) for the
fiscal year.
3. Obtain from the jurisdiction a detail general ledger and balance sheet for the fiscal
year.
a. Identify the amount of Measure A cash and investments recorded at the end of the
fiscal year. Compare amount to Measure A fund balance and provide an
explanation for any differences greater than 25% of fund balance.
b. Identify any amounts due from other funds.
c. Identify the components of ending fund balance for the Measure A activity (e.g.,
nonspendable, restricted, assigned, committed, unassigned) [and for County of
Riverside only by geographic area].
i. Identify the existence of any restatement of Measure A fund balance; inquire
of management as to the reason for any restatement and provide a summary
of the restatement items.
ii. Compare ending fund balance to total revenues for the current year and prior
two years. If ending fund balance is greater than sum of total revenues for the
three-year period, inquire of management as to the reason(s) for the
accumulation of fund balance (e.g., status of specific projects included in the
5-Year CIP).
4. Obtain an operating statement for the Measure A activity for the fiscal year, including
budget amounts; include the operating statement as an exhibit to the report.
a. Review the revenues in the operating statement.
i. Inquire of management as to what fund is used to record Measure A revenues
received from RCTC and identify what the total revenues were for the fiscal
year.
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ii. Obtain from RCTC a listing of Measure A payments to the jurisdiction.
1. Compare the Measure A sales tax revenues recorded by the jurisdiction to
the listing of payments made by RCTC. [Use gross amounts paid by RCTC]
iii. Obtain from the jurisdiction an interest allocation schedule for the fiscal year.
1. Identify the allocation amount of interest income to Measure A activity and
what the amount of interest income was for the fiscal year. If no interest
was allocated, inquire of management as to reason for not allocating
interest income.
b. Review the expenditures in the operating statement.
i. Inquire of management as to what fund is used to record Measure A
expenditures and what the total expenditures were for the fiscal year.
ii. Select expenditures for testing that comprise at least 20% of the total
expenditures.
1. For the expenditures selected for testing, compare the dollar amount listed
on the general ledger to the supporting documentation.
2. For the expenditures selected for testing, review the 5-Year CIP and note
if the project is included in the 5-Year CIP and is an allowable cost.
iii. Inquire of management as to the nature of any transfers in or out recorded in
the Measure A fund. For any transfers out, determine if nature of transfer out
was included in the 5-Year CIP.
iv. Inquire of management as to the amount of general or non-project-related
indirect costs, if any, included in expenditures. If indirect costs exceed 8% of
Measure A revenue, inquire of management as to the basis for indirect costs
charged to Measure A. If indirect costs are identified, determine if such costs
are included in the 5-Year CIP.
v. Inquire of management as to the amount of debt service expenditures recorded
in the Measure A fund and determine is such costs are included in the 5-Year
CIP.
5. Obtain from RCTC a listing of jurisdictions who participate in the Western County or
Coachella Valley TUMF programs.
a. If the jurisdiction is a participant in the TUMF program, select at least one
disbursement for validation as to the amount remitted to WRCOG or CVAG, as
applicable.
b. Indicate the total amount of TUMF fees collected and remitted during the fiscal
year.
6. Obtain from RCTC a listing of jurisdictions who participate in the Western County
MSHCP program.
a. If the jurisdiction is a participant in the MSHCP program, select at least one
disbursement for validation as to the amount remitted to RCA, as applicable.
b. Inquire of management as to the existence of any fees collected in prior years and
not remitted to RCA as of the end of the fiscal year.
c. Indicate the total amount of MSHCP fees collected and remitted during the fiscal
year.
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7. Obtain from RCTC the MOE base year requirement, including supporting detail of the
calculations for its city/County, and the carryover amount allowed as of the beginning
of the fiscal year.
a. Obtain from the city/County a calculation of its current year MOE amount in the
format similar to its base year calculation. Attach a copy of the calculation
worksheet provided by the city/County as an exhibit to the report.
b. Compare the current year MOE amounts from the General Fund to the general
ledger.
c. Review the General Fund general ledger to determine if there were any transfers
in to fund any MOE amounts.
d. Compare the amount of current year MOE expenditures to the MOE base
requirement and add any excess to, or subtract any deficiency from, the carryover
amount.
e. If the amount of discretionary funds spent is less than the MOE base requirement
(MOE deficiency), determine the amount of any prior year MOE carryover using
the information obtained from RCTC and reduce the MOE deficiency by any
available MOE carryover to determine an adjusted current year expenditure
amount.
G. Measure A Proposed Specialized Transit Agreed-Upon Procedures (Proposed)
1. Obtain specialized transit grant funding agreement from RCTC, including exhibit of
budget submitted with funding application, matching requirements, and any budget
modifications subsequently approved by RCTC.
a. Inquire of management as to the accounting and identification of Measure A
funded programs.
b. Inquire of management as to whether the accounting of Measure A funds received
by the Agency were accounted for separately or commingled with other programs
and/or funding sources.
2. Obtain monthly reporting package for third, sixth, ninth, and last months of the annual
reporting period and revenue and expense amounts for the fiscal year from the general
ledger.
a. Recalculate totals on reporting packages.
b. Inquire of management as to the accomplishment of the applicable program goals
and source of documentation for accomplishing program goals. Agree third, sixth,
and ninth month reports provided by RCTC to source documents from Agency as
to total passenger one-way trips made or number of people served.
c. Include a summary of revenues and expenses from the general ledger for the fiscal
year compared to budgeted amounts (present in format of monthly reporting
package) as an exhibit (Exhibit A).
d. For the exhibit summary of revenues and expenses, calculate variances of
budgeted expense amounts compared to actual amounts in terms of dollars and
percentages. For expense variances greater than 25%, inquire of management
as to the existence of approval from RCTC. Determine if budgeted amounts per
Exhibit A are consistent with the current Commission-approved budget.
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e. For the exhibit summary of revenues and expenses, calculate the variance of total
budgeted expenses compared to actual total expenses in terms of dollars and
percentage.
i. If the variance is greater than 20%, inquire of management why the actual total
expenses were less than the budgeted total expenses.
f. List the total revenues and expenses from the final fiscal year reporting package
(“Check Sum” tab) and calculate the difference between funding received and
expenses/capital expenditures incurred as per Exhibit A. For any variances, inquire
of management as to the nature of the changes in originally reported revenues
and/or expenses.
3. Determine if funding agreement includes requirement for matching contributions. If
agency was required to provide matching contributions, perform the following
procedures:
a. Review RCTC’s policy on qualifying in-kind matching contributions.
b. Inquire of management how matching requirements per the funding agreement
were satisfied (i.e., sources) and what the total dollar value was for cash match
and for in-kind matching contributions. Indicate if cash and in-kind matching
amounts were not met, met, or exceeded, as applicable.
i. If match was not met based on budget match requirement, compare actual
Measure A revenues to budgeted Measure A revenues. If full amount of
budgeted Measure A was not received, the minimum match requirement
should also be reduced by a proportionate amount in order to determine the
adjusted match requirement.
ii. If adjusted match requirement was not met, inquire of management as to
explanation for shortfall in meeting adjusted match requirement.
c. If source of match was in-kind contributions, inquire of management as to the
following:
i. If such contributions were made by a third party.
ii. If such third party contributions were related to property or services which
benefited the project or program and which were contributed by third parties
without charge to the grantee, or through a modified cost arrangement;
iii. If such contributions were necessary and reasonable for the efficient
accomplishment of program objectives; and
iv. If using volunteer time, a tracking method existed to identify when donated
services were provided.
d. For in-kind matching contributions presented on the third, sixth, and ninth month
reporting packages, compare such contribution amounts to supporting
documentation provided by the third party.
e. Inquire of management if any loans were obtained or lines of credit utilized to pay
Measure A program expenses.
i. If such indebtedness was incurred, inquire of management as to the amount
and if such amount is reflected in revenues as a cash match.
4. Obtain amount of Measure A funds disbursed to Agency from RCTC for specialized
transit grant purposes for the fiscal year.
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a. Agree amount from RCTC to amount recorded by the agency.
5. Obtain a summary of expenses (Personnel, Operating, Capital) by major line item
incurred by the Agency related to the specialized transit grant; include summary as an
exhibit (Exhibit A) to the report.
a. Inquire of management how Measure A expenses are recorded (i.e., direct costs,
allocations, or indirect costs).
b. Inquire of management as to the existence of any unreported expenses related to
the Measure A specialized transit program provided by the Agency. If amounts
are not reported, obtain a summary of such amounts and inquire of management
as to why such amounts are not reported.
c. Select one pay period from personnel expenses for testing.
d. Select operating expenses for testing that comprise at least 20% of the total
expenses.
e. Select all capital expenditures for testing.
f. For the expenses/capital expenditures selected for testing, compare the dollar
amount listed on the general ledger to the supporting documentation. Additionally,
for personnel expenses, agree hours charged to Measure A specialized transit
activities to approved timesheet or other documentation.
g. For the expenses/capital expenditures selected for testing, compare the type of
expense to the allowable costs included in the funding agreement.
h. Compare the summary of expenses/capital expenditures by major line item to the
budget included in the funding agreement and note any variances.
i. Inquire of management as to the amount of indirect or overhead costs, if any,
included in expenses and compare amount to the budget included in the funding
agreement.
6. Inquire of management as to the existence of any temporarily restricted net assets or
deferred revenues as of the end of the fiscal year related to the Measure A funded
program.
a. Obtain a copy of approval letter from RCTC, if applicable, for the carryover of such
balances.
b. If temporarily restricted net assets or deferred revenues exist as of the end of the
fiscal year, inquire of management as to source of funds responsible for generating
such balances.
7. Review the prior year’s report and note the existence of any temporarily restricted net
assets or deferred revenues as of the end of the prior fiscal year; inquire of
management if such amount was used to reduce the current fiscal year disbursements
of Measure A to the Agency.
8. Inquire of management as to the rating of the Agency’s insurer for commercial general
liability insurance, business automobile liability insurance, and worker’s compensation
insurance.
H. MSHCP Member Agency Agreed-Upon Procedures (Proposed, subject to
change due to requirement to adopt new ordinance and resolution)
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1. Obtain any updates to the Member Agency’s ordinance for collection of the MSHCP
fees.
2. Upon obtaining the updates, determine if the ordinance is in accordance with the
MSHCP Implementing Agreement and Joint Powers Agreement.
3. Determine if fees on the building permits are collected in accordance with the Member
Agency ordinance.
4. Obtain the schedule of fees collected on MSHCP building permits for the year ended
June 30, 202X.
5. Obtain a listing of building permits issued during the year ended June 30, 202X.
Identify the new construction and commercial/industrial permits. Select for testing
10% of new construction and commercial/industrial building permits, selecting no less
than 25 permits or 100% of permits if total permits for new construction and
commercial/industrial is less than 25.
6. Recalculate the fees collected by the Member Agency on building permits to determine
if they are correct and if the correct amounts have been remitted to the RCA. If fees
are incorrect, determine the fees that should have been collected and remitted.
7. Determine if fees collected on building permits were remitted to the RCA within 90
days of the earlier of the date they were collected or should have been collected.
8. Determine additional amounts, if any, which should be returned to the Member Agency
for building permits.
9. If amounts are due to the RCA on building permits, calculate interest owed, based on
the RCA’s Resolution No. 07-04 adopted on September 10, 2007, using the interest
rate paid by Riverside County (County) Treasury on amounts held by the County.
10. Obtain a list of all construction (civic and infrastructure) contracts awarded by the
Member Agency during the fiscal year. Select a sample of 10% of the contracts for
testing, selecting no less than three contracts, or 100% of contracts if the total number
of contracts is less than three.
11. Compute the amount of MSHCP fees on the civic and infrastructure contracts that
should have been remitted.
12. Determine if the MSHCP fees on the civic and infrastructure contracts were remitted
to the RCA within 90 days of contract award.
13. Determine additional amounts on civic and infrastructure contracts, if any, which
should be remitted to the RCA or returned to the Member Agency.
14. If additional amounts are due to the RCA on civic and infrastructure contracts,
calculate interest owed, using the interest rate paid County Treasury on amounts held
by the County.
I. Measure A Recipient Conformance Requirements
1. Allowable Costs. Measure A funds may only be used for transportation purposes
including the administration of Division 25 including legal actions related thereto; the
construction, capital acquisition, maintenance, and operation of streets, roads,
highways including state highways and public transit systems; and for related
purposes. These purposes include expenditures for the planning, environmental
reviews, engineering and design costs, and related right-of-way acquisition.
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a. Eligible local street and road projects costs include any engineering, capital, or
maintenance cost. Decisions on projects are to be made by local jurisdictions
subject to Capital Improvement Program requirements.
i. Annual budget reflecting the local government or agency’s anticipated receipts
and expenditures should be prepared and submitted to RCTC upon approval
by the governing board. The data contained in the capital improvement plans
submitted to RCTC should be included in the recipient’s budgets. These
budgets allow for proper evaluation by RCTC of the recipient’s activities on an
annual basis. (Policy adopted May 8, 1991)
b. Eligible transit programs include special discount fares for seniors and
handicapped people, commuter bus services, funding for computer assisted
rideshare programs, and “seed” programs to encourage the creation of vanpools.
Additionally, funds will be used to provide further reductions for the truly needy and
to expand existing services and implement new services. Bus capital replacement
and additional bus service may also be an eligible program within the Coachella
Valley, subject to a determination of funding by the Coachella Valley Association
of Governments (CVAG).
2. Maintenance of Effort (MOE). Additional funds provided under Measure A are
intended to supplement existing local revenues being used for transportation
purposes. Government agencies shall maintain their existing commitment of local
funds for street highway and public transit purposes pursuant to Measure A.
a. The local cities and the County shall annually submit to RCTC a list of the proposed
uses for these funds and a certification that the MOE requirement is being met. If
in any fiscal year, the maintenance of effort requirement is not met, the agency
shall not be eligible for any Measure A funds in the following fiscal year. Such
funds shall be distributed to the remaining local governments using the formula for
the area.
i. Agencies may use any local discretionary funds expended for local streets and
roads purposes during previous fiscal years which were in excess of their
maintenance of effort requirements to meet their MOE requirements for the
fiscal year. (Measure A Maintenance of Effort Guidelines)
b. RCTC shall assure the cities’ and County compliance with MOE funding
requirements before allocating funds for local streets and roads.
c. RCTC shall not allocate funds to an individual city or the County for local streets
and roads use within the Western County and Coachella Valley areas unless
WRCOG or CVAG indicates participation of agency in the Transportation Uniform
Mitigation Fee program necessary for implementation of the planned regional
arterial system.
3. Allocation of Funds to Geographic Areas. Funds for transportation purposes shall
be allocated to the Western County, Coachella Valley, and Palo Verde Valley areas
proportionate to the Measure A funds generated within these areas.
4. Allocation of Funds within Geographic Areas. RCTC shall return 2009 Measure A
funds to the geographic areas as follows (Applicable to RCTC):
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a. Western County. To be distributed for the following programs: $370 million
(approx. 11% to new corridors; $1,020 million (approx. 30%) to highways; $390
million (approx. 12%) to public transit; $300 million (approx. 9%) to regional
arterials; $970 million (approx. 29%) to local streets and roads; $270 million
(approx. 8%) to bond financing; and $40 million (approx. 1%) to economic
development.
i. Local streets and roads funding are to be distributed by a formula based on
75% on proportionate population and 25% on 2009 Measure A revenues
generated within each jurisdiction, if they participate in the Transportation
Uniform Mitigation Fee program and Multi-Species Habitat Conservation Plan.
If local agencies choose not to participate in the TUMF and MSHCP programs,
the funds they would otherwise receive for local streets and roads will be added
to the Measure A funds for the Regional Arterial System administered by
RCTC.
b. Coachella Valley. To be distributed for the following programs: 50% to highways
and regional arterial projects; 35% to local streets and roads; and 15% to
specialized public transit.
i. Local streets and roads funds will be provided to Coachella Valley cities and
the County if they participate in the Transportation Uniform Mitigation Fee
program. If local agencies choose not to participate in the TUMF program, the
funds they would otherwise receive for local streets and roads will be added to
the Measure A funds for the Regional Arterial System administered by CVAG.
ii. Local streets and roads funds are to be distributed by a formula based on 50%
on proportionate dwelling units and 50% on 2009 Measure A revenues
generated within each jurisdiction, as interpreted in Ordinance and direction
provided by CVAG.
c. Palo Verde Valley. To be distributed 100% to local streets and roads.
i. Local streets and roads funds are to be distributed by a formula based on 75%
on proportionate population and 25% on sales tax revenues generated in each
jurisdiction.
5. Accounting Records. Measure A recipients are required to maintain accurate,
complete, and separate accounting records for all sources of the funds they receive.
Small not-for-profit agencies are encouraged but not required to maintain separate
accounting records as long as Measure A receipts, related revenues, and
expenditures can be readily identified. If RCTC’s independent auditors are unable to
readily identify which funds are being used for expenditures, then the agency will be
required to maintain separate accounting records and cash accounts if they are to
continue receiving Measure A allocations. Any agency which maintains poor
accounting records will receive funding allocations on a reimbursement basis only.
(Policy adopted May 12, 1993)
6. Interfund Borrowing. Interfund borrowing from Measure A funding sources to
another local jurisdiction fund is strictly prohibited. Cities and agencies must maintain
sufficient cash balances so as not to impair their Measure A funds. Evidence of
interfund borrowing or impaired cash balances will result in the city or agency receiving
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funds from RCTC on a reimbursement basis only after any existing city or agency
reserves of prior Commission funds have been fully depleted. (Policy adopted May
12, 1993)
7. Interest Income Allocations. Interest on Measure A funds shall accrue separately
for all of RCTC’s programs as defined in the text of Measure A. This interest allocation
policy is applicable to the entire County, and such allocations shall be made monthly.
Interest earned on unexpended Measure A monies should be recorded in the Measure
A fund established by a local government or other agency receiving local streets and
roads or specialized transit monies. As these funds are restricted, the related interest
earned should be restricted as required by governmental regulations and other
transportation funding including the Transportation Act. (Policy adopted May 8, 1991
and May 12, 1993)
8. Accumulated Deficits. Accumulated funding source deficits are the responsibility of
the local jurisdiction. RCTC will consider allocating additional funds for such deficits
when justifiable on a case-by-case basis. (Policy adopted May 12, 1993)
9. Budget Variances. Significant budget variances should be avoided. All local
jurisdictions are required to compare the budget to actual results and make mid-year
revisions as needed. (Policy adopted May 12, 1993)
10. Unexpended Monies. Whenever the annual fiscal audit or the proposed update of
the Five Year Capital Improvement Program of a local agency shows a Measure A
Local Streets and Road Program carryover balance in excess of three (3) times the
annual allocation to an agency, Commission staff will:
a. Meet with the local agency to have them explain the reason for the carryover and
explore alternatives for moving projects faster, and
b. Present a report of their findings to RCTC’s Budget and Finance Committee to
determine if any further action should be considered and proposed to the full
Commission.
(Policy included in December 13, 1995 revisions to the RCTC Program and Funding
Guide)
J. Transit Compliance Requirements
The auditors should review the TDA regulations for Local Transportation Fund and State
Transit Assistance funding. California Code Section 6664 discusses the fiscal and
compliance audits of all claimants, Section 6666 provides the compliance audit tasks for
non-transit claimants, and Section 6667 provides the compliance audit tasks for transit
claimants. The TDA Statutes and California Code of Regulation Guidebook is available at:
https://dot.ca.gov/-/media/dot-media/programs/rail-mass-
transportation/documents/f0009844-tda-07-2018-a11y.pdf.
California Department of Transportation program guidelines for State of Good Repair
funds received through RCTC are located at:
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https://dot.ca.gov/-/media/dot-media/programs/rail-mass-
transportation/documents/sgr/202008-sgr-final-guidelines-a11y.pdf
Proposition 1B accountability requirements for Public Transportation Modernization,
Improvement and Service Enhancement Account (PTMISEA) funds received through
Caltrans are located at:
https://dot.ca.gov/-/media/dot-media/programs/rail-mass-
transportation/documents/ptmisea/201910-ptmisea-guidelines-a11y.pdf
Proposition 1B guidelines for Transit System Safety, Security, and Disaster Response
Account (TSSSDRA) funds received through CalOES are located at:
https://www.caloes.ca.gov/GrantsManagementSite/Documents/FY 2016-17 HR
Guidance with Allocations.pdf#search=TSSSDRA guidelines
LCTOP program guidelines for funds received through Caltrans are located at:
https://dot.ca.gov/-/media/dot-media/programs/rail-mass-
transportation/documents/lctop/201909-lctop-fy19-20-guidelines-a11y.pdf
K. MSCHP Compliance Requirements
The auditors should review the MSHCP Member Agency requirements in various implementation
documents which are available at:
MSHCP Implementation Agreement Ordinance (for current procedures, see model
ordinance beginning on page 347 of link)
https://www.wrc-rca.org/Permit_Docs/MSHCP/MSHCP-Volume3.pdf
MSHCP Implementation Manual (effective for FY 2021/22 agreed-upon procedures)
https://www.wrc-
rca.org//Permit_Docs/MSHCP/MSHCP%20Mitigation%20Fee%20Implementation%20M
anual%20Final.pdf
End of Statement of Services
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EXHIBIT "B"
COMPENSATION
[TO BE INSERTED BEHIND THIS PAGE]
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(Amounts subject to rounding
differences)
FIRM PROJECT TASKS/ROLE COST
Brown Armstrong Accountancy Corporation2 Audit and Attestation Services 622,077$
-
622,077$
TASK NUMBER TASK DESCRIPTION COST
TDA Article 3/Bicycle and Pedestrian2 Audit Services 172,800$
TDA Article 4/Transit Audit Services -
Measure A Local Streets and Roads Agreed-Upon Procedures Attestation Services 194,443
Measure A Specialized Transit2 Agreed-Upon Procedures Attestation Services -
MSHCP Member Agencies Agreed-Upon Procedures Attestation Services 254,833
622,077
-$
622,077$
FISCAL YEAR PROJECT COST
FY 2020/212 Audit and Attestation Services 103,679$
FY 2021/222 Audit and Attestation Services 103,679
FY 2022/232 Audit and Attestation Services 103,679
FY 2023/24 (Option Year 1)2 Audit and Attestation Services 103,679
FY 2024/25 (Option Year 2)2 Audit and Attestation Services 103,679
FY 2025/26 (Option Year 3)2 Audit and Attestation Services 103,679
622,077
622,077$ TOTAL COSTS
1 Commission authorization pertains to total contract award amount. Compensation adjustments between consultants may occur;
however, the maximum total compensation authorized may not be exceeded.
2 TDA Article 3/Bicycle and Pedestrian audits and Measure A Specialized Transit agreed-upon procedures will be determined annually
based on TDA claimants and Measure A disbursements; accordingly, amounts are estimated. This estimate assumes eight (8) annual
TDA Article 3/Bicycle and Pedestrian audits and zero (0) Measure A Specialized Transit attestation services.
SUBTOTAL
OTHER DIRECT COSTS
TOTAL COSTS
SUBTOTAL
EXHIBIT "B"
COMPENSATION SUMMARY1
Prime Consultant:
OTHER DIRECT COSTS
TOTAL COSTS
EXHIBIT B-1
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17336.00000\8752982.1
Agreement No. 21-19-036-00
RIVERSIDE COUNTY TRANSPORTATION COMMISSION
AGREEMENT FOR AUDIT AND ATTESTATION SERVICES
FOR THE WESTERN RIVERSIDE COUNTY
MEASURE A RECIPIENTS AND
TRANSPORTATION DEVELOPMENT ACT CLAIMANTS
OF THE
RIVERSIDE COUNTY TRANSPORTATION COMMISSION
AND THE MEMBER AGENCIES
OF THE
WESTERN RIVERSIDE COUNTY
REGIONAL CONSERVATION AUTHORITY
WITH CONRAD LLP
1. PARTIES AND DATE.
This Agreement is made and entered into this day of , 2021, by and
between the RIVERSIDE COUNTY TRANSPORTATION COMMISSION ("the Co-
mmission") and CONRAD LLP ("Consultant"), a Limited Liability Partnership.
2. RECITALS.
2.1 Consultant desires to perform and assume responsibility for the
provision of certain professional consulting services required by Commission on the terms
and conditions set forth in this Agreement. Consultant represents that it is a professional
consultant, experienced in providing audit services to public clients, is licensed in the
State of California, and is familiar with the plans of Commission.
2.2 Commission desires to engage Consultant to render certain audit
and attestation services for the Commission ("Project") as set forth herein.
3. TERMS.
3.1 General Scope of Services. Consultant promises and agrees to
furnish to Commission all labor materials, tools, equipment, services, and incidental and
customary work necessary to fully and adequately provide professional consulting
services and advice on various issues affecting the decisions of Commission regarding
the Project and on other programs and matters affecting Commission, hereinafter referred
to as "Services". The Services are more particularly described in Exhibit "A" attached
hereto and incorporated herein by reference. All Services shall be subject to, and
performed in accordance with, this Agreement, the exhibits attached hereto and
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incorporated herein by reference, and all applicable local, state, and federal laws, rules
and regulations.
3.2 Term. The term of this Agreement shall be from the date first
specified above to June 30, 2024, unless earlier terminated as provided herein. The
Commission, at its sole discretion, may extend this Agreement for three (3) additional
single year terms through June 30, 2027. Consultant shall complete the Services within
the term of this Agreement and shall meet any other established schedules and
deadlines.
3.3 Schedule of Services. Consultant shall perform the Services
expeditiously, within the term of this Agreement, and in accordance with the Audit
Schedule set forth in Exhibit "A" attached hereto and incorporated herein by reference.
Consultant represents that it has the professional and technical personnel required to
perform the Services in conformance with such conditions. In order to facilitate
Consultant's conformance with the Schedule, the Commission shall respond to
Consultant's submittals in a timely manner. Upon request of the Commission, Consultant
shall provide a more detailed schedule of anticipated performance to meet the Audit
Schedule.
3.4 Independent Contractor; Control and Payment of Subordinates. The
Services shall be performed by Consultant under its supervision. Consultant will
determine the means, method and details of performing the Services subject to the
requirements of this Agreement. Commission retains Consultant on an independent
contractor basis and Consultant is not an employee of Commission. Consultant retains
the right to perform similar or different services for others during the term of this
Agreement. Any additional personnel performing the Services under this Agreement on
behalf of Consultant shall not be employees of Commission and shall at all times be under
Consultant's exclusive direction and control. Consultant shall pay all wages, salaries, and
other amounts due such personnel in connection with their performance of Services under
this Agreement and as required by law. Consultant shall be responsible for all reports
and obligations respecting such additional personnel, including, but not limited to: social
security taxes, income tax withholding, unemployment insurance, and workers'
compensation insurance.
3.5 Conformance to Applicable Requirements. All work prepared by
Consultant shall be subject to the approval of Commission.
3.6 Substitution of Key Personnel. Consultant has represented to
Commission that certain key personnel will perform and coordinate the Services under
this Agreement. Should one or more of such personnel become unavailable, Consultant
may substitute other personnel of at least equal competence and experience upon written
approval of Commission. In the event that Commission and Consultant cannot agree as
to the substitution of key personnel, Commission shall be entitled to terminate this
Agreement for cause, pursuant to provisions of Section 3.16 of this Agreement. The key
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personnel for performance of this Agreement are as follows: Andrea Jayasekara, Sam
Parera, Mariana Beuchat, Cameron Gelinas, and Sage Mohan.
3.7 Commission’s Representative. Commission hereby designates the
Chief Financial Officer, or his or her designee, to act as its representative for the
performance of this Agreement ("Commission’s Representative"). Commission's
representative shall have the power to act on behalf of Commission for all purposes under
this Agreement. Consultant shall not accept direction from any person other than
Commission's Representative or his or her designee.
3.8 Consultant’s Representative. Consultant hereby designates Andrea
Jayasekara, or his or her designee, to act as its representative for the performance of this
Agreement ("Consultant’s Representative"). Consultant’s Representative shall have full
authority to represent and act on behalf of the Consultant for all purposes under this
Agreement. The Consultant’s Representative shall supervise and direct the Services,
using his or her best skill and attention, and shall be responsible for all means, methods,
techniques, sequences and procedures and for the satisfactory coordination of all
portions of the Services under this Agreement.
3.9 Coordination of Services. Consultant agrees to work closely with
Commission staff in the performance of Services and shall be available to Commission's
staff, consultants and other staff at all reasonable times.
3.10 Standard of Care; Licenses. Consultant shall perform the Services
under this Agreement in a skillful and competent manner, consistent with the standard
generally recognized as being employed by professionals in the same discipline in the
State of California. Consultant represents and maintains that it is skilled in the
professional calling necessary to perform the Services. Consultant warrants that all
employees and subcontractors shall have sufficient skill and experience to perform the
Services assigned to them. Finally, Consultant represents that it, its employees and
subcontractors have all licenses, permits, qualifications and approvals of whatever nature
that are legally required to perform the Services and that such licenses and approvals
shall be maintained throughout the term of this Agreement. Consultant shall perform, at
its own cost and expense and without reimbursement from Commission, any Services
necessary to correct errors or omissions which are caused by the Consultant’s failure to
comply with the standard of care provided for herein, and shall be fully responsible to the
Commission for all damages and other liabilities provided for in the indemnification
provisions of this Agreement arising from the Consultant’s errors and omissions.
3.11 Laws and Regulations. Consultant shall keep itself fully informed of
and in compliance with all local, state and federal laws, rules and regulations in any
manner affecting the performance of the Project or the Services, including all Cal/OSHA
requirements, and shall give all notices required by law. Consultant shall be liable for all
violations of such laws and regulations in connection with Services. If the Consultant
performs any work knowing it to be contrary to such laws, rules and regulations and
without giving written notice to Commission, Consultant shall be solely responsible for all
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costs arising therefrom. Consultant shall defend, indemnify and hold Commission, its
officials, directors, officers, employees and agents free and harmless, pursuant to the
indemnification provisions of this Agreement, from any claim or liability arising out of any
failure or alleged failure to comply with such laws, rules or regulations.
3.12 Insurance.
3.12.1 Time for Compliance. Consultant shall not commence work
under this Agreement until it has provided evidence satisfactory to the Commission that
it has secured all insurance required under this section, in a form and with insurance
companies acceptable to the Commission. In addition, Consultant shall not allow any
subcontractor to commence work on any subcontract until it has secured all insurance
required under this section.
3.12.2 Minimum Requirements. Consultant shall, at its expense,
procure and maintain for the duration of the Agreement insurance against claims for
injuries to persons or damages to property which may arise from or in connection with the
performance of the Agreement by the Consultant, its agents, representatives, employees
or subcontractors. Consultant shall also require all of its subcontractors to procure and
maintain the same insurance for the duration of the Agreement. Such insurance shall
meet at least the following minimum levels of coverage:
(A) Minimum Scope of Insurance. Coverage shall be at
least as broad as the latest version of the following: (1) General Liability: Insurance
Services Office Commercial General Liability coverage (occurrence form CG 0001 or
exact equivalent); (2) Automobile Liability: Insurance Services Office Business Auto
Coverage (form CA 0001, code 1 (any auto) or exact equivalent); and (3) Workers’
Compensation and Employer’s Liability: Workers’ Compensation insurance as required
by the State of California and Employer’s Liability Insurance.
(B) Minimum Limits of Insurance. Consultant shall
maintain limits no less than: (1) General Liability: $2,000,000 per occurrence for bodily
injury, personal injury and property damage. If Commercial General Liability Insurance
or other form with general aggregate limit is used, either the general aggregate limit shall
apply separately to this Agreement/location or the general aggregate limit shall be twice
the required occurrence limit; (2) Automobile Liability: $1,000,000 per accident for bodily
injury and property damage; and (3) if Consultant has an employees, Workers’
Compensation and Employer’s Liability: Workers’ Compensation limits as required by the
Labor Code of the State of California. Employer’s Practices Liability limits of $1,000,000
per accident.
3.12.3 Professional Liability. Consultant shall procure and maintain,
and require its sub-consultants to procure and maintain, for a period of five (5) years
following completion of the Project, errors and omissions liability insurance appropriate to
their profession. Such insurance shall be in an amount not less than $1,000,000 per
claim. This insurance shall be endorsed to include contractual liability applicable to this
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Agreement and shall be written on a policy form coverage specifically designed to protect
against acts, errors or omissions of the Consultant. “Covered Professional Services” as
designated in the policy must specifically include work performed under this Agreement.
The policy must “pay on behalf of” the insured and must include a provision establishing
the insurer's duty to defend.
3.12.4 Insurance Endorsements. The insurance policies shall
contain the following provisions, or Consultant shall provide endorsements on forms
approved by the Commission to add the following provisions to the insurance policies:
(A) General Liability.
(i) Commercial General Liability Insurance must
include coverage for (1) bodily injury and property damage; (2) personal Injury/Advertising
injury; (3) premises/operations liability; (4) products/completed operations liability; (5)
aggregate limits that apply per project; (6) explosion, collapse and underground (UCX)
exclusion deleted; (7) contractual liability with respect to this Agreement; (8) broad form
property damage; and (9) independent consultants coverage.
(ii) The policy shall contain no endorsements or
provisions limiting coverage for (1) contractual liability; (2) cross liability exclusion for
claims or suits by one insured against another; or (3) contain any other exclusion contrary
to this Agreement.
(iii) The policy shall give the Commission, its
directors, officials, officers, employees, and agents insured status using ISO endorsement
forms 20 10 10 01 and 20 37 10 01, or endorsements providing the exact same coverage.
(iv) The additional insured coverage under the
policy shall be “primary and non-contributory” and will not seek contribution from the
Commission’s insurance or self-insurance and shall be at least as broad as CG 20 01 04
13, or endorsements providing the exact same coverage.
(B) Automobile Liability. The automobile liability policy
shall be endorsed to state that: (1) the Commission, its directors, officials, officers,
employees and agents shall be covered as additional insureds with respect to the
ownership, operation, maintenance, use, loading or unloading of any auto owned, leased,
hired or borrowed by the Consultant or for which the Consultant is responsible; and (2)
the insurance coverage shall be primary insurance as respects the Commission, its
directors, officials, officers, employees and agents, or if excess, shall stand in an
unbroken chain of coverage excess of the Consultant’s scheduled underlying coverage.
Any insurance or self-insurance maintained by the Commission, its directors, officials,
officers, employees and agents shall be excess of the Consultant’s insurance and shall
not be called upon to contribute with it in any way.
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(C) Workers’ Compensation and Employers Liability
Coverage.
(i) Consultant certifies that he/she is aware of the
provisions of Section 3700 of the California Labor Code which requires every employer
to be insured against liability for workers’ compensation or to undertake self-insurance in
accordance with the provisions of that code, and he/she will comply with such provisions
before commencing work under this Agreement.
(ii) The insurer shall agree to waive all rights of
subrogation against the Commission, its directors, officials, officers, employees and
agents for losses paid under the terms of the insurance policy which arise from work
performed by the Consultant.
(D) All Coverages.
(i) Defense costs shall be payable in addition to the
limits set forth hereunder.
(ii) Requirements of specific coverage or limits
contained in this section are not intended as a limitation on coverage, limits, or other
requirement, or a waiver of any coverage normally provided by any insurance. It shall be
a requirement under this Agreement that any available insurance proceeds broader than
or in excess of the specified minimum insurance coverage requirements and/or limits set
forth herein shall be available to the Commission, its directors, officials, officers,
employees and agents as additional insureds under said policies. Furthermore, the
requirements for coverage and limits shall be (1) the minimum coverage and limits
specified in this Agreement; or (2) the broader coverage and maximum limits of coverage
of any insurance policy or proceeds available to the named insured; whichever is greater.
(iii) The limits of insurance required in this
Agreement may be satisfied by a combination of primary and umbrella or excess
insurance. Any umbrella or excess insurance shall contain or be endorsed to contain a
provision that such coverage shall also apply on a primary and non-contributory basis for
the benefit of the Commission (if agreed to in a written contract or agreement) before the
Commission’s own insurance or self-insurance shall be called upon to protect it as a
named insured. The umbrella/excess policy shall be provided on a “following form” basis
with coverage at least as broad as provided on the underlying policy(ies).
(iv) Consultant shall provide the Commission at
least thirty (30) days prior written notice of cancellation of any policy required by this
Agreement, except that the Consultant shall provide at least ten (10) days prior written
notice of cancellation of any such policy due to non-payment of premium. If any of the
required coverage is cancelled or expires during the term of this Agreement, the
Consultant shall deliver renewal certificate(s) including the General Liability Additional
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Insured Endorsement to the Commission at least ten (10) days prior to the effective date
of cancellation or expiration.
(v) The retroactive date (if any) of each policy is to
be no later than the effective date of this Agreement. Consultant shall maintain such
coverage continuously for a period of at least three years after the completion of the work
under this Agreement. Consultant shall purchase a one (1) year extended reporting
period A) if the retroactive date is advanced past the effective date of this Agreement; B)
if the policy is cancelled or not renewed; or C) if the policy is replaced by another claims-
made policy with a retroactive date subsequent to the effective date of this Agreement.
(vi) The foregoing requirements as to the types and
limits of insurance coverage to be maintained by Consultant, and any approval of said
insurance by the Commission, is not intended to and shall not in any manner limit or
qualify the liabilities and obligations otherwise assumed by the Consultant pursuant to
this Agreement, including but not limited to, the provisions concerning indemnification.
(vii) If at any time during the life of the Agreement,
any policy of insurance required under this Agreement does not comply with these
specifications or is canceled and not replaced, Commission has the right but not the duty
to obtain the insurance it deems necessary and any premium paid by Commission will be
promptly reimbursed by Consultant or Commission will withhold amounts sufficient to pay
premium from Consultant payments. In the alternative, Commission may cancel this
Agreement. The Commission may require the Consultant to provide complete copies of
all insurance policies in effect for the duration of the Project.
(viii) Neither the Commission nor any of its directors,
officials, officers, employees or agents shall be personally responsible for any liability
arising under or by virtue of this Agreement.
Each insurance policy required by this Agreement shall
be endorsed to state that:
3.12.5 Deductibles and Self-Insurance Retentions. Any deductibles
or self-insured retentions must be declared to and approved by the Commission. If the
Commission does not approve the deductibles or self-insured retentions as presented,
Consultant shall guarantee that, at the option of the Commission, either: (1) the insurer
shall reduce or eliminate such deductibles or self-insured retentions as respects the
Commission, its directors, officials, officers, employees and agents; or, (2) the Consultant
shall procure a bond guaranteeing payment of losses and related investigation costs,
claims and administrative and defense expenses.
3.12.6 Acceptability of Insurers. Insurance is to be placed with
insurers with a current A.M. Best’s rating no less than A:VIII, licensed to do business in
California, and satisfactory to the Commission.
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3.12.7 Verification of Coverage. Consultant shall furnish
Commission with original certificates of insurance and endorsements effecting coverage
required by this Agreement on forms satisfactory to the Commission. The certificates and
endorsements for each insurance policy shall be signed by a person authorized by that
insurer to bind coverage on its behalf. All certificates and endorsements must be received
and approved by the Commission before work commences. The Commission reserves
the right to require complete, certified copies of all required insurance policies, at any
time.
3.12.8 Subconsultant Insurance Requirements. Consultant shall not
allow any subcontractors or subconsultants to commence work on any subcontract until
they have provided evidence satisfactory to the Commission that they have secured all
insurance required under this section. Policies of commercial general liability insurance
provided by such subcontractors or subconsultants shall be endorsed to name the
Commission as an additional insured using ISO form CG 20 38 04 13 or an endorsement
providing the exact same coverage. If requested by Consultant, the Commission may
approve different scopes or minimum limits of insurance for particular subcontractors or
subconsultants.
3.13 Safety. Consultant shall execute and maintain its work so as to avoid
injury or damage to any person or property. In carrying out its Services, the Consultant
shall at all times be in compliance with all applicable local, state and federal laws, rules
and regulations, and shall exercise all necessary precautions for the safety of employees
appropriate to the nature of the work and the conditions under which the work is to be
performed. Safety precautions as applicable shall include, but shall not be limited to: (A)
adequate life protection and life saving equipment and procedures; (B) instructions in
accident prevention for all employees and subcontractors, such as safe walkways,
scaffolds, fall protection ladders, bridges, gang planks, confined space procedures,
trenching and shoring, equipment and other safety devices, equipment and wearing
apparel as are necessary or lawfully required to prevent accidents or injuries; and (C)
adequate facilities for the proper inspection and maintenance of all safety measures.
3.14 Fees and Payment.
3.14.1 Compensation. Consultant shall receive compensation,
including authorized reimbursements, for all Services rendered under this Agreement at
the rates set forth in Exhibit "B" attached hereto. The total compensation shall not exceed
One Hundred Three Thousand Seven Hundred Sixty Dollars ($103,760) without written
approval of Commission's Executive Director (“Total Compensation”). Extra Work may
be authorized, as described below, and if authorized, will be compensated at the rates
and manner set forth in this Agreement.
3.14.2 Payment of Compensation. Consultant shall submit to
Commission a monthly statement which indicates work completed and hours of Services
rendered by Consultant. The statement shall describe the amount of Services and
supplies provided since the initial commencement date, or since the start of the
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subsequent billing periods, as appropriate, through the date of the statement.
Commission shall, within 45 days of receiving such statement, review the statement and
pay all approved charges thereon.
3.14.3 Reimbursement for Expenses. Consultant shall not be
reimbursed for any expenses unless authorized in writing by Commission.
3.14.4 Extra Work. At any time during the term of this Agreement,
Commission may request that Consultant perform Extra Work. As used herein, "Extra
Work" means any work which is determined by Commission to be necessary for the
proper completion of the Project, but which the parties did not reasonably anticipate would
be necessary at the execution of this Agreement. Consultant shall not perform, nor be
compensated for, Extra Work without written authorization from Commission's Executive
Director.
3.15 Accounting Records. Consultant shall maintain complete and
accurate records with respect to all costs and expenses incurred and fees charged under
this Agreement. All such records shall be clearly identifiable. Consultant shall allow a
representative of Commission during normal business hours to examine, audit, and make
transcripts or copies of such records and any other documents created pursuant to this
Agreement. Consultant shall allow inspection of all work, data, documents, proceedings,
and activities related to the Agreement for a period of three (3) years from the date of final
payment under this Agreement.
3.16 Termination of Agreement.
3.16.1 Grounds for Termination. Commission may, by written notice
to Consultant, terminate the whole or any part of this Agreement at any time and without
cause by giving written notice to Consultant of such termination, and specifying the
effective date thereof. Upon termination, Consultant shall be compensated only for those
services which have been fully and adequately rendered to Commission through the
effective date of the termination, and Consultant shall be entitled to no further
compensation. Consultant may not terminate this Agreement except for cause.
3.16.2 Effect of Termination. If this Agreement is terminated as
provided herein, Commission may require Consultant to provide all finished or unfinished
Documents and Data, as defined below, and other information of any kind prepared by
Consultant in connection with the performance of Services under this Agreement.
Consultant shall be required to provide such document and other information within fifteen
(15) days of the request.
3.16.3 Additional Services. In the event this Agreement is terminated
in whole or in part as provided herein, Commission may procure, upon such terms and in
such manner as it may determine appropriate, services similar to those terminated.
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3.17 Delivery of Notices. All notices permitted or required under this
Agreement shall be given to the respective parties at the following address, or at such
other address as the respective parties may provide in writing for this purpose:
CONSULTANT: COMMISSION:
Conrad LLP Riverside County
23161 Lake Center Dr. Transportation Commission
Suite 200 4080 Lemon Street, 3rd Floor
Lake Forest, CA 92630 Riverside, CA 92501
Attn: Andrea Jayasekara Attn: Executive Director
Such notice shall be deemed made when personally delivered or when
mailed, forty-eight (48) hours after deposit in the U.S. Mail, first class postage prepaid
and addressed to the party at its applicable address. Actual notice shall be deemed
adequate notice on the date actual notice occurred, regardless of the method of service.
3.18 Ownership of Materials/Confidentiality.
3.18.1 Documents & Data. This Agreement creates an exclusive and
perpetual license for Commission to copy, use, modify, reuse, or sub-license any and all
copyrights and designs embodied in plans, specifications, studies, drawings, estimates,
materials, data and other documents or works of authorship fixed in any tangible medium
of expression, including but not limited to, physical drawings or data magnetically or
otherwise recorded on computer diskettes, which are prepared or caused to be prepared
by Consultant under this Agreement (“Documents & Data”).
Consultant shall require all subcontractors to agree in writing that
Commission is granted an exclusive and perpetual license for any Documents & Data the
subcontractor prepares under this Agreement.
Consultant represents and warrants that Consultant has the legal
right to grant the exclusive and perpetual license for all such Documents & Data.
Consultant makes no such representation and warranty in regard to Documents & Data
which were prepared by design professionals other than Consultant or provided to
Consultant by the Commission.
Commission shall not be limited in any way in its use of the
Documents & Data at any time, provided that any such use not within the purposes
intended by this Agreement shall be at Commission’s sole risk.
All programs, working papers, files and other materials of the
Consultant made pursuant to this Agreement shall remain the property of the Consultant.
The Commission will have access to this material at any time. All reports delivered by the
Consultant and its subcontractors pursuant to the Agreement shall become the property
of the Commission without restriction or limitation on their use and shall be made available
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upon request, to the Commission at any time. Original copies of the deliverable reports
shall be delivered to the Commission upon completion of the Services or termination of
the Services. The Consultant shall be permitted to retain copies of such items for the
furtherance of its technical proficiency; however, publication of this material is subject to
the written approval of the Commission.
3.18.2 Intellectual Property. In addition, Commission shall have and
retain all right, title and interest (including copyright, patent, trade secret and other
proprietary rights) in all plans, specifications, studies, drawings, estimates, materials,
data, computer programs or software and source code, enhancements, documents, and
any and all works of authorship fixed in any tangible medium or expression, including but
not limited to, physical drawings or other data magnetically or otherwise recorded on
computer media (“Intellectual Property”) prepared or developed by or on behalf of
Consultant under this Agreement as well as any other such Intellectual Property prepared
or developed by or on behalf of Consultant under this Agreement.
The Commission shall have and retain all right, title and interest in
Intellectual Property developed or modified under this Agreement whether or not paid for
wholly or in part by Commission, whether or not developed in conjunction with Consultant,
and whether or not developed by Consultant. Consultant will execute separate written
assignments of any and all rights to the above referenced Intellectual Property upon
request of Commission.
Consultant shall also be responsible to obtain in writing separate
written assignments from any subcontractors or agents of Consultant of any and all right
to the above referenced Intellectual Property. Should Consultant, either during or
following termination of this Agreement, desire to use any of the above-referenced
Intellectual Property, it shall first obtain the written approval of the Commission.
All materials and documents which were developed or prepared by
the Consultant for general use prior to the execution of this Agreement and which are not
the copyright of any other party or publicly available and any other computer applications,
shall continue to be the property of the Consultant. However, unless otherwise identified
and stated prior to execution of this Agreement, Consultant represents and warrants that
it has the right to grant the exclusive and perpetual license for all such Intellectual Property
as provided herein.
Commission further is granted by Consultant a non-exclusive and
perpetual license to copy, use, modify or sub-license any and all Intellectual Property
otherwise owned by Consultant which is the basis or foundation for any derivative,
collective, insurrectional, or supplemental work created under this Agreement.
3.18.3 Confidentiality. All ideas, memoranda, specifications, plans,
procedures, drawings, descriptions, computer program data, input record data, written
information, and other Documents and Data either created by or provided to Consultant
in connection with the performance of this Agreement shall be held confidential by
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Consultant. Such materials shall not, without the prior written consent of Commission, be
used by Consultant for any purposes other than the performance of the Services. Nor
shall such materials be disclosed to any person or entity not connected with the
performance of the Services or the Project. Nothing furnished to Consultant which is
otherwise known to Consultant or is generally known, or has become known, to the
related industry shall be deemed confidential. Consultant shall not use Commission's
name or insignia, photographs of the Project, or any publicity pertaining to the Services
or the Project in any magazine, trade paper, newspaper, television or radio production or
other similar medium without the prior written consent of Commission.
3.18.4 Infringement Indemnification. Consultant shall defend,
indemnify and hold the Commission, its directors, officials, officers, employees,
volunteers and agents free and harmless, pursuant to the indemnification provisions of
this Agreement, for any alleged infringement of any patent, copyright, trade secret, trade
name, trademark, or any other proprietary right of any person or entity in consequence of
the use on the Project by Commission of the Documents & Data, including any method,
process, product, or concept specified or depicted.
3.19 Cooperation; Further Acts. The Parties shall fully cooperate with one
another, and shall take any additional acts or sign any additional documents as may be
necessary, appropriate or convenient to attain the purposes of this Agreement.
3.20 Attorney's Fees. If either party commences an action against the
other party, either legal, administrative or otherwise, arising out of or in connection with
this Agreement, the prevailing party in such litigation shall be entitled to have and recover
from the losing party reasonable attorney's fees and costs of such actions.
3.21 Indemnification. Consultant shall defend, indemnify and hold the
Commission, its directors, officials, officers, agents, consultants, employees and
volunteers free and harmless from any and all claims, demands, causes of action, costs,
expenses, liabilities, losses, damages or injuries, in law or in equity, to property or
persons, including wrongful death, in any manner arising out of or incident to any alleged
negligent acts, omissions or willful misconduct of the Consultant, its officials, officers,
employees, agents, consultants, and contractors arising out of or in connection with the
performance of the Services, the Project or this Agreement, including without limitation,
the payment of all consequential damages, attorneys fees and other related costs and
expenses. Consultant shall defend, at Consultant’s own cost, expense and risk, any and
all such aforesaid suits, actions or other legal proceedings of every kind that may be
brought or instituted against the Commission, its directors, officials, officers, agents,
consultants, employees and volunteers. Consultant shall pay and satisfy any judgment,
award or decree that may be rendered against the Commission or its directors, officials,
officers, agents, consultants, employees and volunteers, in any such suit, action or other
legal proceeding. Consultant shall reimburse the Commission and its directors, officials,
officers, agents, consultants, employees and volunteers, for any and all legal expenses
and costs, including reasonable attorney’s fees, incurred by each of them in connection
therewith or in enforcing the indemnity herein provided. Consultant’s obligation to
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indemnity shall not be restricted to insurance proceeds, if any, received by the
Commission or its directors, officials, officers, agents, consultants, employees and
volunteers. This Section 3.21 shall survive any expiration or termination of this
Agreement.
3.22 Entire Agreement. This Agreement contains the entire Agreement
of the parties with respect to the subject matter hereof, and supersedes all prior
negotiations, understandings or agreements. This Agreement may only be
supplemented, amended, or modified by a writing signed by both parties.
3.23 Governing Law. This Agreement shall be governed by the laws of
the State of California. Venue shall be in Riverside County.
3.24 Time of Essence. Time is of the essence for each and every
provision of this Agreement.
3.25 Commission's Right to Employ Other Consultants. The Commission
reserves the right to employ other consultants in connection with this Project.
3.26 Successors and Assigns. This Agreement shall be binding on the
successors and assigns of the parties, and shall not be assigned by Consultant without
the prior written consent of Commission.
3.27 Prohibited Interests and Conflicts.
3.27.1 Solicitation. Consultant maintains and warrants that it has not
employed nor retained any company or person, other than a bona fide employee working
solely for Consultant, to solicit or secure this Agreement. Further, Consultant warrants
that it has not paid nor has it agreed to pay any company or person, other than a bona
fide employee working solely for Consultant, any fee, commission, percentage, brokerage
fee, gift or other consideration contingent upon or resulting from the award or making of
this Agreement. For breach or violation of this warranty, Commission shall have the right
to rescind this Agreement without liability.
3.27.2 Conflict of Interest. For the term of this Agreement, no
member, officer or employee of Commission, during the term of his or her service with
Commission, shall have any direct interest in this Agreement, or obtain any present or
anticipated material benefit arising therefrom.
3.27.3 Conflict of Employment. Employment by the Consultant of
personnel currently on the payroll of the Commission shall not be permitted in the
performance of this Agreement, even though such employment may occur outside of the
employee’s regular working hours or on weekends, holidays or vacation time. Further,
the employment by the Consultant of personnel who have been on the Commission
payroll within one year prior to the date of execution of this Agreement, where this
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employment is caused by and or dependent upon the Consultant securing this or related
Agreements with the Commission, is prohibited.
3.27.4 Employment Adverse to the Commission. Consultant shall
notify the Commission, and shall obtain the Commission’s written consent, prior to
accepting work to assist with or participate in a third-party lawsuit or other legal or
administrative proceeding against the Commission during the term of this Agreement.
3.28 Equal Opportunity Employment. Consultant represents that it is an
equal opportunity employer and it shall not discriminate against any employee or
applicant for employment because of race, religion, color, national origin, ancestry, sex
or age. Such non-discrimination shall include, but not be limited to, all activities related
to initial employment, upgrading, demotion, transfer, recruitment or recruitment
advertising, layoff or termination. Consultant shall also comply with all relevant provisions
of Commission's Disadvantaged Business Enterprise program, Affirmative Action Plan or
other related Commission programs or guidelines currently in effect or hereinafter
enacted.
3.29 Subcontracting. Consultant shall not subcontract any portion of the
work or Services required by this Agreement, except as expressly stated herein, without
prior written approval of the Commission. Subcontracts, if any, shall contain a provision
making them subject to all provisions stipulated in this Agreement.
3.30 Reserved.
3.31 Employment of Apprentices. This Agreement shall not prevent the
employment of properly indentured apprentices in accordance with the California Labor
Code, and no employer or labor union shall refuse to accept otherwise qualified
employees as indentured apprentices on the work performed hereunder solely on the
ground of race, creed, national origin, ancestry, color or sex. Every qualified apprentice
shall be paid the standard wage paid to apprentices under the regulations of the craft or
trade in which he or she is employed and shall be employed only in the craft or trade to
which he or she is registered.
3.32 No Waiver. Failure of Commission to insist on any one occasion
upon strict compliance with any of the terms, covenants or conditions hereof shall not be
deemed a waiver of such term, covenant or condition, nor shall any waiver or
relinquishment of any rights or powers hereunder at any one time or more times be
deemed a waiver or relinquishment of such other right or power at any other time or times.
3.33 Eight-Hour Law. Pursuant to the provisions of the California Labor
Code, eight hours of labor shall constitute a legal day's work, and the time of service of
any worker employed on the work shall be limited and restricted to eight hours during any
one calendar day, and forty hours in any one calendar week, except when payment for
overtime is made at not less than one and one-half the basic rate for all hours worked in
excess of eight hours per day ("Eight-Hour Law"), unless Consultant or the Services are
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not subject to the Eight-Hour Law. Consultant shall forfeit to Commission as a penalty,
$50.00 for each worker employed in the execution of this Agreement by him, or by any
sub-consultant under him, for each calendar day during which such workman is required
or permitted to work more than eight hours in any calendar day and forty hours in any one
calendar week without such compensation for overtime violation of the provisions of the
California Labor Code, unless Consultant or the Services are not subject to the Eight-
Hour Law.
3.34 Subpoenas or Court Orders. Should Consultant receive a subpoena
or court order related to this Agreement, the Services or the Project, Consultant shall
immediately provide written notice of the subpoena or court order to the Commission.
Consultant shall not respond to any such subpoena or court order until notice to the
Commission is provided as required herein, and shall cooperate with the Commission in
responding to the subpoena or court order.
3.35 Survival. All rights and obligations hereunder that by their nature are
to continue after any expiration or termination of this Agreement, including, but not limited
to, the indemnification and confidentiality obligations, and the obligations related to receipt
of subpoenas or court orders, shall survive any such expiration or termination.
3.36 No Third Party Beneficiaries. There are no intended third party
beneficiaries of any right or obligation assumed by the Parties.
3.37 Labor Certification. By its signature hereunder, Consultant certifies
that it is aware of the provisions of Section 3700 of the California Labor Code which
require every employer to be insured against liability for Workers’ Compensation or to
undertake self-insurance in accordance with the provisions of that Code, and agrees to
comply with such provisions before commencing the performance of the Services.
3.38 Counterparts. This Agreement may be signed in counterparts, each
of which shall constitute an original.
3.39 Incorporation of Recitals. The recitals set forth above are true and
correct and are incorporated into this Agreement as though fully set forth herein.
3.40 Invalidity; Severability. If any portion of this Agreement is declared
invalid, illegal, or otherwise unenforceable by a court of competent jurisdiction, the
remaining provisions shall continue in full force and effect.
3.41 Conflicting Provisions. In the event that provisions of any attached
exhibits conflict in any way with the provisions set forth in this Agreement, the language,
terms and conditions contained in this Agreement shall control the actions and obligations
of the Parties and the interpretation of the Parties’ understanding concerning the
performance of the Services.
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3.42 Headings. Article and Section Headings, paragraph captions or
marginal headings contained in this Agreement are for convenience only and shall have
no effect in the construction or interpretation of any provision herein.
3.43 Assignment or Transfer. Consultant shall not assign, hypothecate,
or transfer, either directly or by operation of law, this Agreement or any interest herein,
without the prior written consent of the Commission. Any attempt to do so shall be null
and void, and any assignees, hypothecates or transferees shall acquire no right or interest
by reason of such attempted assignment, hypothecation or transfer.
3.44 Authority to Enter Agreement. Consultant has all requisite power and
authority to conduct its business and to execute, deliver, and perform the Agreement.
Each Party warrants that the individuals who have signed this Agreement have the legal
power, right, and authority to make this Agreement and bind each respective Party.
[SIGNATURES ON FOLLOWING PAGE]
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SIGNATURE PAGE
TO
RIVERSIDE COUNTY TRANSPORTATION COMMISSION
AGREEMENT FOR AUDIT AND ATTESTATION SERVICES
FOR THE WESTERN RIVERSIDE COUNTY
MEASURE A RECIPIENTS AND
TRANSPORTATION DEVELOPMENT ACT CLAIMANTS
OF THE
RIVERSIDE COUNTY TRANSPORTATION COMMISSION
AND THE MEMBER AGENCIES
OF THE
WESTERN RIVERSIDE COUNTY
REGIONAL CONSERVATION AUTHORITY
WITH CONRAD LLP
IN WITNESS WHEREOF, this Agreement was executed on the date first
written above.
RIVERSIDE COUNTY
TRANSPORTATION COMMISSION CONRAD LLP
By: _________________________ By: ____________________________
Anne Mayer Signature
Executive Director
__________________________
Name
__________________________
Title
Approved as to Form: Attest:
By:____________________________ By: ________________________
Best Best & Krieger LLP Its: Secretary
General Counsel
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EXHIBIT "A"
STATEMENT OF SERVICES
[TO BE INSERTED BEHIND THIS PAGE]
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EXHIBIT A - 1
Statement of Services
A. General
The Riverside County Transportation Commission (RCTC), as the transportation planning agency
for Riverside County and the managing agency for the Western Riverside County Regional
Conservation Authority (RCA), is issuing this Request for Proposal in order to secure services
from a Consultant(s) of certified public accountants to perform for the fiscal years ending June
30, 2021, 2022, and 2023, with the option of performing such services for three (3) additional one-
year terms:
Financial and compliance audits of RCTC’s Transportation Development Act (TDA)
claimants for transit (including funding from Local Transportation Fund (LTF) Article 4,
State Transit Assistance (STA), State of Good Repair (SGR), Low Carbon Transit
Operations Program (LCTOP), and Proposition 1B);
Financial and compliance audits of RCTC’s TDA claimants for bicycle and pedestrian
projects (consisting of funding from LTF Article 3);
Agreed-upon procedures similar to those proposed in Appendix A, Section G, for RCTC’s
Measure A recipients of local streets and roads (LSR) funding;
Agreed-upon procedures similar to those proposed in Appendix A, Section H, for RCTC’s
Measure A recipients of specialized transit funding; and
Agreed upon procedures similar to those proposed in Appendix A, Section I, for RCA’s
Member Agencies related to the collection and remittance of mitigation fees in accordance
with each Member Agency’s Multiple Species Habitat Conservation Plan (MSHCP)
Ordinance (with amendments).
Measure A Agreed Upon Procedures
The Measure A Specialized Transit Agreed-Upon Procedures apply to Western County non-
profit and community organizations awarded funding for specialized transit services for a three-
year period through a competitive call for projects. The FY 2020/21 funding awarded at RCTC’s
April 11, 2018 meeting represents the final year of the FY 2018/19 – 2020/21 Call for Projects.
Staff expects that the awards for the FY 2021/22 – 2023/24 Call for Projects will be approved by
RCTC at the April 14, 2021 meeting, as noted in the FY 2021/22 – 2023/24 Measure A Specialized
Transit Call for Projects Guidelines presented at the January 13, 2021 RCTC meeting. FY
2024/25 – FY 2025/26 funding will be determined by the FY 2024/25 – 2026/27 Call for Projects
to be awarded in Spring 2024.
The Measure A LSR Agreed-Upon Procedures apply to all eligible cities in Riverside County
and the County of Riverside. Measure A LSR funding is allocated and disbursed monthly to the
cities and the County of Riverside, as specified in Measure A. RCTC does not currently anticipate
any incorporations or dis-incorporations of cities that would result in a change in Measure A LSR
recipients. Currently, all cities and the County of Riverside meet the eligibility requirements that
include:
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Participation in the Western County or Coachella Valley Transportation Uniform Mitigation
Fee (TUMF) Program, as applicable;
Participation in the RCA’s MSHCP, as applicable;
Annual submittal of a 5-Year Capital Improvement Plan (CIP) list of projects;
Annual Maintenance of Effort certification; and
Annual Project Status Report for the prior fiscal year CIP.
Transportation Development Act Audits
The TDA Transit audits will be performed for the municipal transit operators in the Western
County cities of Banning, Beaumont, Corona, and Riverside. TDA Transit operating and capital
allocations are approved annually by RCTC in June based on the submittal of each transit
operator’s Short-Range Transit Plan. The transit operators also may unexpended Proposition 1B
funding for capital/rehabilitation and/or security projects received through Caltrans and the
California Office of Emergency Services (CalOES), respectively.
The TDA Bicycle and Pedestrian audits apply to local jurisdictions awarded funding by RCTC
for bicycle and pedestrian projects through a biennial competitive call for projects. Local
jurisdictions generally have two years to complete projects, including those projects approved in
the FY 2019/20 Call for Projects at RCTC’s June 12, 2019 meeting. However, as per revised
guidelines approved by RCTC at its January 13, 2021 meeting effective with the FY 2021/22 Call
for Projects to be awarded at the June 9, 2021 RCTC meeting, local jurisdictions will now have
three years to complete projects. Claimants may request disbursement of their allocations by
RCTC on a reimbursement basis in accordance with RCTC’s policies. Accordingly, the TDA
Bicycle and Pedestrian audits are dependent on claims for expenditures of such funds.
MSHCP Agreed Upon Procedures
The MSHCP Agreed-Upon Procedures are required for local jurisdictions that are signatories to
the Joint Exercise of Powers Agreement forming the RCA. They include the 18 Western County
cities and the County of Riverside. The Member Agencies form the independent RCA Board of
Directors to acquire, administer, operate, and maintain land and facilities to establish habitat
reserves for the conservation and protection of species covered by the MSHCP and to implement
the MSHCP.
At its December 7, 2020 meeting, the RCA adopted the 2020 Nexus Study and increase in Local
Development Mitigation Fees (LDMF). The LDMF increase is effective in two phases. The first
phase, an increase of 50%, is effective July 1, 2021. The second phase, full implementation, is
effective January 1, 2022. Member Agencies must prepare an ordinance and resolution to be
considered and approved by the city council (Board of Supervisors in the case of the County of
Riverside) in time to implement the new fee by July 1, 2021. Final action of the city council/Board
of Supervisors must be no later than May 2, 2021 to ensure the new ordinance takes effect by
July 1, 2021 in accordance with California Government Code Section 66017. Per the
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Implementing Agreement with the cities and the County of Riverside signed, the cities and County
must adopt the ordinance, “in substantially the same form or at a minimum, containing the same
requirements as the model ordinance,” adopted by the RCA Board of Directors.
Anticipated Changes in Audit and Attestation Services
RCTC does not anticipate any change in the local jurisdictions subject to TDA Transit audit and
Measure A LSR attestation services; RCA does not anticipate any change in the local jurisdictions
subject to MSHCP attestation services. The agencies requiring Measure A Specialized Transit
and the local jurisdictions requiring TDA Bicycle and Pedestrian audits will be determined each
year based on actual disbursements.
The Chief Financial Officer is designated as the coordinator of the work and may appoint a
Finance Department staff to coordinate day-to-day oversight. The Chief Financial Officer will
serve as the liaison to the audit oversight committee designated by RCTC and the Executive
Committee designated by RCA.
The audits are to be performed by the Consultant(s) in accordance with generally accepted
auditing standards, including use of the most current version of each of the following standards
and guidelines:
American Institute of Certified Public Accountants audit and attestation standards;
General Accounting Office’s (GAO) Government Auditing Standards;
Measure A conformance requirements (Section I);
Transit requirements (Section J); and
MSHCP requirements (Section K).
B. Scope of Work to be Performed
The selected Consultant(s) will be required to perform the following tasks:
Audit of the transit and transportation financial statements of the jurisdictions receiving
TDA funds in accordance with auditing standards generally accepted in the United States
of America; the standards applicable to financial audits contained in Government Auditing
Standards, issued by the Comptroller General of the United States; the TDA as
summarized in the TDA Guidebook; and SGR, LCTOP, and Proposition 1B audit
guidelines specified by Caltrans and CalOES.
Performance of agreed-upon procedures similar to those listed in Section F solely to assist
RCTC in evaluating the applicable jurisdictions’ Measure A transportation funds and
degree of their compliance with RCTC’s requirements of the Measure A LSR program.
RCTC reserves the right to modify the agreed-upon procedures as deemed necessary to
fulfill its oversight responsibilities for the Measure A LSR program.
Performance of agreed-upon procedures similar to those listed in Section G solely to
assist RCTC in evaluating the applicable jurisdictions’/agencies’ Measure A specialized
transit funds and degree of their compliance with RCTC’s requirements of the Measure A
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specialized transit program. RCTC reserves the right to modify the agreed-upon
procedures as deemed necessary to fulfill its oversight responsibilities for the Measure A
Specialized Transit program.
Performance of agreed-upon procedures similar to those listed in Section H solely to assist
RCA in evaluating if fees are collected and remitted in accordance with each Member
Agency’s MSHCP Mitigation Fee Ordinance (with amendments). RCTC reserves the right
to modify the agreed-upon procedures as deemed necessary to fulfill its oversight
responsibilities for the MSHCP, including RCA changes to the LDMF affecting Member
Agency MSHCP Mitigation Fee Ordinances and adoption of a related resolution.
C. Deliverables
Following completion of the audits and agreed-upon procedures and a review of the draft reports
by RCTC, the Consultant(s) shall issue:
A report on the fair presentation of the financial statements for the TDA claimants in
conformity with generally accepted accounting principles and on compliance and internal
control.
A report on the agreed-upon procedures related to the Measure A recipients of LSR
funding.
A report on the agreed-upon procedures related to the Measure A recipients of specialized
transit funding.
A report on the agreed-upon procedures related to the MSHCP fee collection and
remittance.
Drafts of the reports will be provided to RCTC staff and the applicable TDA claimant, Measure A
recipient, or Member Agency. The Chief Financial Officer or designee shall review and approve
each report prior to issuance.
For each report issued to RCTC, the Consultant shall issue one PDF copy to RCTC and one PDF
to the applicable TDA claimant or Measure A recipient, as applicable.
For each report issued to RCA, the Consultant shall print three (3) copies and issue one PDF
copy to RCA.
Financial and Compliance Reports
The Consultant will submit a financial and compliance report for each TDA audit. The Consultant
will be responsible for the preparation, editing, and printing of all financial and compliance reports,
including the financial statements and notes to the financial statements. Although the Consultant
will prepare the financial statements, management of the TDA Claimant is responsible for the
financial statements.
Agreed-Upon Procedures
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The Consultant will submit a report for each Measure A recipient or Member Agency, as
applicable, listing the procedures performed, results of procedures performed, and findings, if any.
The Consultant will be responsible for preparation, editing, and printing of all agreed-upon
procedure reports.
D. Required Communications
Significant Deficiencies – In the required reports on compliance and internal controls, the
Consultant shall communicate any significant deficiencies found during the audit of the TDA
claimants. A significant deficiency shall be defined as a control deficiency, or combination of
control deficiencies, that adversely affects the entity’s ability to initiate, authorize, record, process,
or report financial data reliably in accordance with generally accepted accounting principles such
that there is more than a remote likelihood that a misstatement of the entity’s financial statements
that is more than inconsequential will not be prevented or detected by the entity’s internal control.
Significant deficiencies that are also material weaknesses shall be identified as such in the report.
Other control deficiencies discovered by the Consultant may be reported in a separate letter to
management, which shall be referred to in the reports on compliance and internal controls.
The report on compliance and internal controls shall include all material instances of
noncompliance. All nonmaterial instances of noncompliance may be reported in a separate
management letter, which shall be referred to in the report on compliance and internal controls.
Irregularities and illegal acts – The Consultant shall be required to make an immediate, written
report of all irregularities and illegal acts or indication of illegal acts of which they become aware
to the jurisdiction/agency and RCTC’s/RCA’s audit oversight committee, Executive Director, and
Chief Financial Officer.
Planning meetings – The Consultant shall meet with RCTC staff at least once a year prior to the
commencement of the audits and agreed-upon procedures.
E. Audit Schedule
The work to be performed at the jurisdictions and agencies shall be arranged by the Consultant
with the individual jurisdiction or agency after the conclusion of a planning meeting with RCTC
and RCTC’s issuance of audit notification letters to each jurisdiction and agency.
The RCTC work should be scheduled for no later than November 15 of each year. Barring
unforeseen circumstances, the Consultant must conduct the work activities and provide all
required reports and information to RCTC no later than December 31 of each year. The TDA
audits are required to be submitted to the State Controller by December 31 of each year; however,
an extension may be granted by RCTC for no more than 90 days. RCTC’s policy for Measure A
reports follows the TDA requirement; however, a formal extension is generally not issued.
RCA is required to annually certify to RCTC by June 30 that local jurisdictions participating in the
MSHCP comply with the MSHCP participation requirements to collect and remit fees in
accordance with each Member Agency’s MSHCP Ordinance (with amendments). Accordingly,
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the RCA requires all agreed-upon procedures reports to be issued by February 28 in the year
following the fiscal year for which the agreed-upon procedures are performed.
The Consultant shall keep RCTC apprised at least monthly on the status of the audits and any
issues which have been encountered. RCTC will provide assistance, to the extent necessary
and/or possible, to resolve such issues. If circumstances outside the control of the Consultant or
RCTC or the RCA arise and the deadline cannot be met, both parties agree to communicate the
circumstances and develop an action plan.
F. Measure A Proposed Local Streets and Roads Agreed-Upon Procedures (Proposed)
1. Review the 2009 Measure A (Ordinance 02-001) compliance requirements. Western
County jurisdictions are required to participate in the Transportation Uniform Mitigation
Fee (TUMF) program and in the Multi-Species Habitat Conservation Plan (MSHCP),
which are administered by the Western Riverside Council of Governments (WRCOG)
and the Western Riverside County Regional Conservation Authority (RCA),
respectively. Coachella Valley jurisdictions are required to participate in the TUMF
program administered by the Coachella Valley Association of Governments (CVAG).
Indicate participation in TUMF and/or MSHCP programs.
2. Obtain from RCTC the approved Five-Year Capital Improvement Plan (CIP) for the
fiscal year.
3. Obtain from the jurisdiction a detail general ledger and balance sheet for the fiscal
year.
a. Identify the amount of Measure A cash and investments recorded at the end of the
fiscal year. Compare amount to Measure A fund balance and provide an
explanation for any differences greater than 25% of fund balance.
b. Identify any amounts due from other funds.
c. Identify the components of ending fund balance for the Measure A activity (e.g.,
nonspendable, restricted, assigned, committed, unassigned) [and for County of
Riverside only by geographic area].
i. Identify the existence of any restatement of Measure A fund balance; inquire
of management as to the reason for any restatement and provide a summary
of the restatement items.
ii. Compare ending fund balance to total revenues for the current year and prior
two years. If ending fund balance is greater than sum of total revenues for the
three-year period, inquire of management as to the reason(s) for the
accumulation of fund balance (e.g., status of specific projects included in the
5-Year CIP).
4. Obtain an operating statement for the Measure A activity for the fiscal year, including
budget amounts; include the operating statement as an exhibit to the report.
a. Review the revenues in the operating statement.
i. Inquire of management as to what fund is used to record Measure A revenues
received from RCTC and identify what the total revenues were for the fiscal
year.
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ii. Obtain from RCTC a listing of Measure A payments to the jurisdiction.
1. Compare the Measure A sales tax revenues recorded by the jurisdiction to
the listing of payments made by RCTC. [Use gross amounts paid by RCTC]
iii. Obtain from the jurisdiction an interest allocation schedule for the fiscal year.
1. Identify the allocation amount of interest income to Measure A activity and
what the amount of interest income was for the fiscal year. If no interest
was allocated, inquire of management as to reason for not allocating
interest income.
b. Review the expenditures in the operating statement.
i. Inquire of management as to what fund is used to record Measure A
expenditures and what the total expenditures were for the fiscal year.
ii. Select expenditures for testing that comprise at least 20% of the total
expenditures.
1. For the expenditures selected for testing, compare the dollar amount listed
on the general ledger to the supporting documentation.
2. For the expenditures selected for testing, review the 5-Year CIP and note
if the project is included in the 5-Year CIP and is an allowable cost.
iii. Inquire of management as to the nature of any transfers in or out recorded in
the Measure A fund. For any transfers out, determine if nature of transfer out
was included in the 5-Year CIP.
iv. Inquire of management as to the amount of general or non-project-related
indirect costs, if any, included in expenditures. If indirect costs exceed 8% of
Measure A revenue, inquire of management as to the basis for indirect costs
charged to Measure A. If indirect costs are identified, determine if such costs
are included in the 5-Year CIP.
v. Inquire of management as to the amount of debt service expenditures recorded
in the Measure A fund and determine is such costs are included in the 5-Year
CIP.
5. Obtain from RCTC a listing of jurisdictions who participate in the Western County or
Coachella Valley TUMF programs.
a. If the jurisdiction is a participant in the TUMF program, select at least one
disbursement for validation as to the amount remitted to WRCOG or CVAG, as
applicable.
b. Indicate the total amount of TUMF fees collected and remitted during the fiscal
year.
6. Obtain from RCTC a listing of jurisdictions who participate in the Western County
MSHCP program.
a. If the jurisdiction is a participant in the MSHCP program, select at least one
disbursement for validation as to the amount remitted to RCA, as applicable.
b. Inquire of management as to the existence of any fees collected in prior years and
not remitted to RCA as of the end of the fiscal year.
c. Indicate the total amount of MSHCP fees collected and remitted during the fiscal
year.
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7. Obtain from RCTC the MOE base year requirement, including supporting detail of the
calculations for its city/County, and the carryover amount allowed as of the beginning
of the fiscal year.
a. Obtain from the city/County a calculation of its current year MOE amount in the
format similar to its base year calculation. Attach a copy of the calculation
worksheet provided by the city/County as an exhibit to the report.
b. Compare the current year MOE amounts from the General Fund to the general
ledger.
c. Review the General Fund general ledger to determine if there were any transfers
in to fund any MOE amounts.
d. Compare the amount of current year MOE expenditures to the MOE base
requirement and add any excess to, or subtract any deficiency from, the carryover
amount.
e. If the amount of discretionary funds spent is less than the MOE base requirement
(MOE deficiency), determine the amount of any prior year MOE carryover using
the information obtained from RCTC and reduce the MOE deficiency by any
available MOE carryover to determine an adjusted current year expenditure
amount.
G. Measure A Proposed Specialized Transit Agreed-Upon Procedures (Proposed)
1. Obtain specialized transit grant funding agreement from RCTC, including exhibit of
budget submitted with funding application, matching requirements, and any budget
modifications subsequently approved by RCTC.
a. Inquire of management as to the accounting and identification of Measure A
funded programs.
b. Inquire of management as to whether the accounting of Measure A funds received
by the Agency were accounted for separately or commingled with other programs
and/or funding sources.
2. Obtain monthly reporting package for third, sixth, ninth, and last months of the annual
reporting period and revenue and expense amounts for the fiscal year from the general
ledger.
a. Recalculate totals on reporting packages.
b. Inquire of management as to the accomplishment of the applicable program goals
and source of documentation for accomplishing program goals. Agree third, sixth,
and ninth month reports provided by RCTC to source documents from Agency as
to total passenger one-way trips made or number of people served.
c. Include a summary of revenues and expenses from the general ledger for the fiscal
year compared to budgeted amounts (present in format of monthly reporting
package) as an exhibit (Exhibit A).
d. For the exhibit summary of revenues and expenses, calculate variances of
budgeted expense amounts compared to actual amounts in terms of dollars and
percentages. For expense variances greater than 25%, inquire of management
as to the existence of approval from RCTC. Determine if budgeted amounts per
Exhibit A are consistent with the current Commission-approved budget.
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e. For the exhibit summary of revenues and expenses, calculate the variance of total
budgeted expenses compared to actual total expenses in terms of dollars and
percentage.
i. If the variance is greater than 20%, inquire of management why the actual total
expenses were less than the budgeted total expenses.
f. List the total revenues and expenses from the final fiscal year reporting package
(“Check Sum” tab) and calculate the difference between funding received and
expenses/capital expenditures incurred as per Exhibit A. For any variances, inquire
of management as to the nature of the changes in originally reported revenues
and/or expenses.
3. Determine if funding agreement includes requirement for matching contributions. If
agency was required to provide matching contributions, perform the following
procedures:
a. Review RCTC’s policy on qualifying in-kind matching contributions.
b. Inquire of management how matching requirements per the funding agreement
were satisfied (i.e., sources) and what the total dollar value was for cash match
and for in-kind matching contributions. Indicate if cash and in-kind matching
amounts were not met, met, or exceeded, as applicable.
i. If match was not met based on budget match requirement, compare actual
Measure A revenues to budgeted Measure A revenues. If full amount of
budgeted Measure A was not received, the minimum match requirement
should also be reduced by a proportionate amount in order to determine the
adjusted match requirement.
ii. If adjusted match requirement was not met, inquire of management as to
explanation for shortfall in meeting adjusted match requirement.
c. If source of match was in-kind contributions, inquire of management as to the
following:
i. If such contributions were made by a third party.
ii. If such third party contributions were related to property or services which
benefited the project or program and which were contributed by third parties
without charge to the grantee, or through a modified cost arrangement;
iii. If such contributions were necessary and reasonable for the efficient
accomplishment of program objectives; and
iv. If using volunteer time, a tracking method existed to identify when donated
services were provided.
d. For in-kind matching contributions presented on the third, sixth, and ninth month
reporting packages, compare such contribution amounts to supporting
documentation provided by the third party.
e. Inquire of management if any loans were obtained or lines of credit utilized to pay
Measure A program expenses.
i. If such indebtedness was incurred, inquire of management as to the amount
and if such amount is reflected in revenues as a cash match.
4. Obtain amount of Measure A funds disbursed to Agency from RCTC for specialized
transit grant purposes for the fiscal year.
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a. Agree amount from RCTC to amount recorded by the agency.
5. Obtain a summary of expenses (Personnel, Operating, Capital) by major line item
incurred by the Agency related to the specialized transit grant; include summary as an
exhibit (Exhibit A) to the report.
a. Inquire of management how Measure A expenses are recorded (i.e., direct costs,
allocations, or indirect costs).
b. Inquire of management as to the existence of any unreported expenses related to
the Measure A specialized transit program provided by the Agency. If amounts
are not reported, obtain a summary of such amounts and inquire of management
as to why such amounts are not reported.
c. Select one pay period from personnel expenses for testing.
d. Select operating expenses for testing that comprise at least 20% of the total
expenses.
e. Select all capital expenditures for testing.
f. For the expenses/capital expenditures selected for testing, compare the dollar
amount listed on the general ledger to the supporting documentation. Additionally,
for personnel expenses, agree hours charged to Measure A specialized transit
activities to approved timesheet or other documentation.
g. For the expenses/capital expenditures selected for testing, compare the type of
expense to the allowable costs included in the funding agreement.
h. Compare the summary of expenses/capital expenditures by major line item to the
budget included in the funding agreement and note any variances.
i. Inquire of management as to the amount of indirect or overhead costs, if any,
included in expenses and compare amount to the budget included in the funding
agreement.
6. Inquire of management as to the existence of any temporarily restricted net assets or
deferred revenues as of the end of the fiscal year related to the Measure A funded
program.
a. Obtain a copy of approval letter from RCTC, if applicable, for the carryover of such
balances.
b. If temporarily restricted net assets or deferred revenues exist as of the end of the
fiscal year, inquire of management as to source of funds responsible for generating
such balances.
7. Review the prior year’s report and note the existence of any temporarily restricted net
assets or deferred revenues as of the end of the prior fiscal year; inquire of
management if such amount was used to reduce the current fiscal year disbursements
of Measure A to the Agency.
8. Inquire of management as to the rating of the Agency’s insurer for commercial general
liability insurance, business automobile liability insurance, and worker’s compensation
insurance.
H. MSHCP Member Agency Agreed-Upon Procedures (Proposed, subject to
change due to requirement to adopt new ordinance and resolution)
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1. Obtain any updates to the Member Agency’s ordinance for collection of the MSHCP
fees.
2. Upon obtaining the updates, determine if the ordinance is in accordance with the
MSHCP Implementing Agreement and Joint Powers Agreement.
3. Determine if fees on the building permits are collected in accordance with the Member
Agency ordinance.
4. Obtain the schedule of fees collected on MSHCP building permits for the year ended
June 30, 202X.
5. Obtain a listing of building permits issued during the year ended June 30, 202X.
Identify the new construction and commercial/industrial permits. Select for testing
10% of new construction and commercial/industrial building permits, selecting no less
than 25 permits or 100% of permits if total permits for new construction and
commercial/industrial is less than 25.
6. Recalculate the fees collected by the Member Agency on building permits to determine
if they are correct and if the correct amounts have been remitted to the RCA. If fees
are incorrect, determine the fees that should have been collected and remitted.
7. Determine if fees collected on building permits were remitted to the RCA within 90
days of the earlier of the date they were collected or should have been collected.
8. Determine additional amounts, if any, which should be returned to the Member Agency
for building permits.
9. If amounts are due to the RCA on building permits, calculate interest owed, based on
the RCA’s Resolution No. 07-04 adopted on September 10, 2007, using the interest
rate paid by Riverside County (County) Treasury on amounts held by the County.
10. Obtain a list of all construction (civic and infrastructure) contracts awarded by the
Member Agency during the fiscal year. Select a sample of 10% of the contracts for
testing, selecting no less than three contracts, or 100% of contracts if the total number
of contracts is less than three.
11. Compute the amount of MSHCP fees on the civic and infrastructure contracts that
should have been remitted.
12. Determine if the MSHCP fees on the civic and infrastructure contracts were remitted
to the RCA within 90 days of contract award.
13. Determine additional amounts on civic and infrastructure contracts, if any, which
should be remitted to the RCA or returned to the Member Agency.
14. If additional amounts are due to the RCA on civic and infrastructure contracts,
calculate interest owed, using the interest rate paid County Treasury on amounts held
by the County.
I. Measure A Recipient Conformance Requirements
1. Allowable Costs. Measure A funds may only be used for transportation purposes
including the administration of Division 25 including legal actions related thereto; the
construction, capital acquisition, maintenance, and operation of streets, roads,
highways including state highways and public transit systems; and for related
purposes. These purposes include expenditures for the planning, environmental
reviews, engineering and design costs, and related right-of-way acquisition.
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a. Eligible local street and road projects costs include any engineering, capital, or
maintenance cost. Decisions on projects are to be made by local jurisdictions
subject to Capital Improvement Program requirements.
i. Annual budget reflecting the local government or agency’s anticipated receipts
and expenditures should be prepared and submitted to RCTC upon approval
by the governing board. The data contained in the capital improvement plans
submitted to RCTC should be included in the recipient’s budgets. These
budgets allow for proper evaluation by RCTC of the recipient’s activities on an
annual basis. (Policy adopted May 8, 1991)
b. Eligible transit programs include special discount fares for seniors and
handicapped people, commuter bus services, funding for computer assisted
rideshare programs, and “seed” programs to encourage the creation of vanpools.
Additionally, funds will be used to provide further reductions for the truly needy and
to expand existing services and implement new services. Bus capital replacement
and additional bus service may also be an eligible program within the Coachella
Valley, subject to a determination of funding by the Coachella Valley Association
of Governments (CVAG).
2. Maintenance of Effort (MOE). Additional funds provided under Measure A are
intended to supplement existing local revenues being used for transportation
purposes. Government agencies shall maintain their existing commitment of local
funds for street highway and public transit purposes pursuant to Measure A.
a. The local cities and the County shall annually submit to RCTC a list of the proposed
uses for these funds and a certification that the MOE requirement is being met. If
in any fiscal year, the maintenance of effort requirement is not met, the agency
shall not be eligible for any Measure A funds in the following fiscal year. Such
funds shall be distributed to the remaining local governments using the formula for
the area.
i. Agencies may use any local discretionary funds expended for local streets and
roads purposes during previous fiscal years which were in excess of their
maintenance of effort requirements to meet their MOE requirements for the
fiscal year. (Measure A Maintenance of Effort Guidelines)
b. RCTC shall assure the cities’ and County compliance with MOE funding
requirements before allocating funds for local streets and roads.
c. RCTC shall not allocate funds to an individual city or the County for local streets
and roads use within the Western County and Coachella Valley areas unless
WRCOG or CVAG indicates participation of agency in the Transportation Uniform
Mitigation Fee program necessary for implementation of the planned regional
arterial system.
3. Allocation of Funds to Geographic Areas. Funds for transportation purposes shall
be allocated to the Western County, Coachella Valley, and Palo Verde Valley areas
proportionate to the Measure A funds generated within these areas.
4. Allocation of Funds within Geographic Areas. RCTC shall return 2009 Measure A
funds to the geographic areas as follows (Applicable to RCTC):
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a. Western County. To be distributed for the following programs: $370 million
(approx. 11% to new corridors; $1,020 million (approx. 30%) to highways; $390
million (approx. 12%) to public transit; $300 million (approx. 9%) to regional
arterials; $970 million (approx. 29%) to local streets and roads; $270 million
(approx. 8%) to bond financing; and $40 million (approx. 1%) to economic
development.
i. Local streets and roads funding are to be distributed by a formula based on
75% on proportionate population and 25% on 2009 Measure A revenues
generated within each jurisdiction, if they participate in the Transportation
Uniform Mitigation Fee program and Multi-Species Habitat Conservation Plan.
If local agencies choose not to participate in the TUMF and MSHCP programs,
the funds they would otherwise receive for local streets and roads will be added
to the Measure A funds for the Regional Arterial System administered by
RCTC.
b. Coachella Valley. To be distributed for the following programs: 50% to highways
and regional arterial projects; 35% to local streets and roads; and 15% to
specialized public transit.
i. Local streets and roads funds will be provided to Coachella Valley cities and
the County if they participate in the Transportation Uniform Mitigation Fee
program. If local agencies choose not to participate in the TUMF program, the
funds they would otherwise receive for local streets and roads will be added to
the Measure A funds for the Regional Arterial System administered by CVAG.
ii. Local streets and roads funds are to be distributed by a formula based on 50%
on proportionate dwelling units and 50% on 2009 Measure A revenues
generated within each jurisdiction, as interpreted in Ordinance and direction
provided by CVAG.
c. Palo Verde Valley. To be distributed 100% to local streets and roads.
i. Local streets and roads funds are to be distributed by a formula based on 75%
on proportionate population and 25% on sales tax revenues generated in each
jurisdiction.
5. Accounting Records. Measure A recipients are required to maintain accurate,
complete, and separate accounting records for all sources of the funds they receive.
Small not-for-profit agencies are encouraged but not required to maintain separate
accounting records as long as Measure A receipts, related revenues, and
expenditures can be readily identified. If RCTC’s independent auditors are unable to
readily identify which funds are being used for expenditures, then the agency will be
required to maintain separate accounting records and cash accounts if they are to
continue receiving Measure A allocations. Any agency which maintains poor
accounting records will receive funding allocations on a reimbursement basis only.
(Policy adopted May 12, 1993)
6. Interfund Borrowing. Interfund borrowing from Measure A funding sources to
another local jurisdiction fund is strictly prohibited. Cities and agencies must maintain
sufficient cash balances so as not to impair their Measure A funds. Evidence of
interfund borrowing or impaired cash balances will result in the city or agency receiving
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funds from RCTC on a reimbursement basis only after any existing city or agency
reserves of prior Commission funds have been fully depleted. (Policy adopted May
12, 1993)
7. Interest Income Allocations. Interest on Measure A funds shall accrue separately
for all of RCTC’s programs as defined in the text of Measure A. This interest allocation
policy is applicable to the entire County, and such allocations shall be made monthly.
Interest earned on unexpended Measure A monies should be recorded in the Measure
A fund established by a local government or other agency receiving local streets and
roads or specialized transit monies. As these funds are restricted, the related interest
earned should be restricted as required by governmental regulations and other
transportation funding including the Transportation Act. (Policy adopted May 8, 1991
and May 12, 1993)
8. Accumulated Deficits. Accumulated funding source deficits are the responsibility of
the local jurisdiction. RCTC will consider allocating additional funds for such deficits
when justifiable on a case-by-case basis. (Policy adopted May 12, 1993)
9. Budget Variances. Significant budget variances should be avoided. All local
jurisdictions are required to compare the budget to actual results and make mid-year
revisions as needed. (Policy adopted May 12, 1993)
10. Unexpended Monies. Whenever the annual fiscal audit or the proposed update of
the Five Year Capital Improvement Program of a local agency shows a Measure A
Local Streets and Road Program carryover balance in excess of three (3) times the
annual allocation to an agency, Commission staff will:
a. Meet with the local agency to have them explain the reason for the carryover and
explore alternatives for moving projects faster, and
b. Present a report of their findings to RCTC’s Budget and Finance Committee to
determine if any further action should be considered and proposed to the full
Commission.
(Policy included in December 13, 1995 revisions to the RCTC Program and Funding
Guide)
J. Transit Compliance Requirements
The auditors should review the TDA regulations for Local Transportation Fund and State
Transit Assistance funding. California Code Section 6664 discusses the fiscal and
compliance audits of all claimants, Section 6666 provides the compliance audit tasks for
non-transit claimants, and Section 6667 provides the compliance audit tasks for transit
claimants. The TDA Statutes and California Code of Regulation Guidebook is available at:
https://dot.ca.gov/-/media/dot-media/programs/rail-mass-
transportation/documents/f0009844-tda-07-2018-a11y.pdf.
California Department of Transportation program guidelines for State of Good Repair
funds received through RCTC are located at:
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https://dot.ca.gov/-/media/dot-media/programs/rail-mass-
transportation/documents/sgr/202008-sgr-final-guidelines-a11y.pdf
Proposition 1B accountability requirements for Public Transportation Modernization,
Improvement and Service Enhancement Account (PTMISEA) funds received through
Caltrans are located at:
https://dot.ca.gov/-/media/dot-media/programs/rail-mass-
transportation/documents/ptmisea/201910-ptmisea-guidelines-a11y.pdf
Proposition 1B guidelines for Transit System Safety, Security, and Disaster Response
Account (TSSSDRA) funds received through CalOES are located at:
https://www.caloes.ca.gov/GrantsManagementSite/Documents/FY 2016-17 HR
Guidance with Allocations.pdf#search=TSSSDRA guidelines
LCTOP program guidelines for funds received through Caltrans are located at:
https://dot.ca.gov/-/media/dot-media/programs/rail-mass-
transportation/documents/lctop/201909-lctop-fy19-20-guidelines-a11y.pdf
K. MSCHP Compliance Requirements
The auditors should review the MSHCP Member Agency requirements in various implementation
documents which are available at:
MSHCP Implementation Agreement Ordinance (for current procedures, see model
ordinance beginning on page 347 of link)
https://www.wrc-rca.org/Permit_Docs/MSHCP/MSHCP-Volume3.pdf
MSHCP Implementation Manual (effective for FY 2021/22 agreed-upon procedures)
https://www.wrc-
rca.org//Permit_Docs/MSHCP/MSHCP%20Mitigation%20Fee%20Implementation%20M
anual%20Final.pdf
End of Statement of Services
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EXHIBIT "B"
COMPENSATION
[TO BE INSERTED BEHIND THIS PAGE]
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(Amounts subject to rounding
differences)
FIRM PROJECT TASKS/ROLE COST
Conrad LLP2 Audit and Attestation Services 103,760$
-
103,760$
TASK NUMBER TASK DESCRIPTION COST
TDA Article 3/Bicycle and Pedestrian2 Audit Services -$
TDA Article 4/Transit Audit Services -
Measure A Local Streets and Roads Agreed-Upon Procedures Attestation Services 45,100
Measure A Specialized Transit2 Agreed-Upon Procedures Attestation Services -
MSHCP Member Agencies Agreed-Upon Procedures Attestation Services 58,660
103,760
-
103,760$
FISCAL YEAR PROJECT COST
FY 2020/212 Audit and Attestation Services 17,238$
FY 2021/222 Audit and Attestation Services 17,260
FY 2022/232 Audit and Attestation Services 17,282
FY 2023/24 (Option Year 1)2 Audit and Attestation Services 17,304
FY 2024/25 (Option Year 2)2 Audit and Attestation Services 17,327
FY 2025/26 (Option Year 3)2 Audit and Attestation Services 17,349
103,760
103,760$ TOTAL COSTS
1 Commission authorization pertains to total contract award amount. Compensation adjustments between consultants may occur;
however, the maximum total compensation authorized may not be exceeded.
2 TDA Article 3/Bicycle and Pedestrian audits and Measure A Specialized Transit agreed-upon procedures will be determined annually
based on TDA claimants and Measure A disbursements; accordingly, amounts are estimated. This estimate assumes zero (0) annual
TDA Article 3/Bicycle and Pedestrian audits and zero (0) Measure A Specialized Transit attestation services.
SUBTOTAL
OTHER DIRECT COSTS
TOTAL COSTS
SUBTOTAL
EXHIBIT "B"
COMPENSATION SUMMARY1
Prime Consultant:
OTHER DIRECT COSTS
TOTAL COSTS
EXHIBIT B-1
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Agreement No. 21-19-037-00
RIVERSIDE COUNTY TRANSPORTATION COMMISSION
AGREEMENT FOR AUDIT AND ATTESTATION SERVICES
FOR THE WESTERN RIVERSIDE COUNTY
MEASURE A RECIPIENTS AND
TRANSPORTATION DEVELOPMENT ACT CLAIMANTS
OF THE
RIVERSIDE COUNTY TRANSPORTATION COMMISSION
AND THE MEMBER AGENCIES
OF THE
WESTERN RIVERSIDE COUNTY
REGIONAL CONSERVATION AUTHORITY
WITH EIDE BAILLY LLP
1. PARTIES AND DATE.
This Agreement is made and entered into this day of , 2021, by and
between the RIVERSIDE COUNTY TRANSPORTATION COMMISSION ("the Co-
mmission") and EIDE BAILLY LLP ("Consultant"), a Limited Liability Partnership.
2. RECITALS.
2.1 Consultant desires to perform and assume responsibility for the
provision of certain professional consulting services required by Commission on the terms
and conditions set forth in this Agreement. Consultant represents that it is a professional
consultant, experienced in providing audit services to public clients, is licensed in the
State of California, and is familiar with the plans of Commission.
2.2 Commission desires to engage Consultant to render certain audit
and attestation services for the Commission ("Project") as set forth herein.
3. TERMS.
3.1 General Scope of Services. Consultant promises and agrees to
furnish to Commission all labor materials, tools, equipment, services, and incidental and
customary work necessary to fully and adequately provide professional consulting
services and advice on various issues affecting the decisions of Commission regarding
the Project and on other programs and matters affecting Commission, hereinafter referred
to as "Services". The Services are more particularly described in Exhibit "A" attached
hereto and incorporated herein by reference. All Services shall be subject to, and
performed in accordance with, this Agreement, the exhibits attached hereto and
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incorporated herein by reference, and all applicable local, state, and federal laws, rules
and regulations.
3.2 Term. The term of this Agreement shall be from the date first
specified above to June 30, 2024, unless earlier terminated as provided herein. The
Commission, at its sole discretion, may extend this Agreement for three (3) additional
single year terms through June 30, 2027. Consultant shall complete the Services within
the term of this Agreement and shall meet any other established schedules and
deadlines.
3.3 Schedule of Services. Consultant shall perform the Services
expeditiously, within the term of this Agreement, and in accordance with the Audit
Schedule set forth in Exhibit "A" attached hereto and incorporated herein by reference.
Consultant represents that it has the professional and technical personnel required to
perform the Services in conformance with such conditions. In order to facilitate
Consultant's conformance with the Schedule, the Commission shall respond to
Consultant's submittals in a timely manner. Upon request of the Commission, Consultant
shall provide a more detailed schedule of anticipated performance to meet the Audit
Schedule.
3.4 Independent Contractor; Control and Payment of Subordinates. The
Services shall be performed by Consultant under its supervision. Consultant will
determine the means, method and details of performing the Services subject to the
requirements of this Agreement. Commission retains Consultant on an independent
contractor basis and Consultant is not an employee of Commission. Consultant retains
the right to perform similar or different services for others during the term of this
Agreement. Any additional personnel performing the Services under this Agreement on
behalf of Consultant shall not be employees of Commission and shall at all times be under
Consultant's exclusive direction and control. Consultant shall pay all wages, salaries, and
other amounts due such personnel in connection with their performance of Services under
this Agreement and as required by law. Consultant shall be responsible for all reports
and obligations respecting such additional personnel, including, but not limited to: social
security taxes, income tax withholding, unemployment insurance, and workers'
compensation insurance.
3.5 Conformance to Applicable Requirements. All work prepared by
Consultant shall be subject to the approval of Commission.
3.6 Substitution of Key Personnel. Consultant has represented to
Commission that certain key personnel will perform and coordinate the Services under
this Agreement. Should one or more of such personnel become unavailable, Consultant
may substitute other personnel of at least equal competence and experience upon written
approval of Commission. In the event that Commission and Consultant cannot agree as
to the substitution of key personnel, Commission shall be entitled to terminate this
Agreement for cause, pursuant to provisions of Section 3.16 of this Agreement. The key
personnel for performance of this Agreement are as follows: Roger Alfaro, Phillip White,
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Kinnaly Soukhaseum, Jessica Andersen, Erika Partida, Lauryn Stapleton, David
Preciado, Joan Park, and Jesse Pattison.
3.7 Commission’s Representative. Commission hereby designates the
Chief Financial Officer, or his or her designee, to act as its representative for the
performance of this Agreement ("Commission’s Representative"). Commission's
representative shall have the power to act on behalf of Commission for all purposes under
this Agreement. Consultant shall not accept direction from any person other than
Commission's Representative or his or her designee.
3.8 Consultant’s Representative. Consultant hereby designates Roger
Alfaro, or his or her designee, to act as its representative for the performance of this
Agreement ("Consultant’s Representative"). Consultant’s Representative shall have full
authority to represent and act on behalf of the Consultant for all purposes under this
Agreement. The Consultant’s Representative shall supervise and direct the Services,
using his or her best skill and attention, and shall be responsible for all means, methods,
techniques, sequences and procedures and for the satisfactory coordination of all
portions of the Services under this Agreement.
3.9 Coordination of Services. Consultant agrees to work closely with
Commission staff in the performance of Services and shall be available to Commission's
staff, consultants and other staff at all reasonable times.
3.10 Standard of Care; Licenses. Consultant shall perform the Services
under this Agreement in a skillful and competent manner, consistent with the standard
generally recognized as being employed by professionals in the same discipline in the
State of California. Consultant represents and maintains that it is skilled in the
professional calling necessary to perform the Services. Consultant warrants that all
employees and subcontractors shall have sufficient skill and experience to perform the
Services assigned to them. Finally, Consultant represents that it, its employees and
subcontractors have all licenses, permits, qualifications and approvals of whatever nature
that are legally required to perform the Services and that such licenses and approvals
shall be maintained throughout the term of this Agreement. Consultant shall perform, at
its own cost and expense and without reimbursement from Commission, any Services
necessary to correct errors or omissions which are caused by the Consultant’s failure to
comply with the standard of care provided for herein, and shall be fully responsible to the
Commission for all damages and other liabilities provided for in the indemnification
provisions of this Agreement arising from the Consultant’s errors and omissions.
3.11 Laws and Regulations. Consultant shall keep itself fully informed of
and in compliance with all local, state and federal laws, rules and regulations in any
manner affecting the performance of the Project or the Services, including all Cal/OSHA
requirements, and shall give all notices required by law. Consultant shall be liable for all
violations of such laws and regulations in connection with Services. If the Consultant
performs any work knowing it to be contrary to such laws, rules and regulations and
without giving written notice to Commission, Consultant shall be solely responsible for all
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costs arising therefrom. Consultant shall defend, indemnify and hold Commission, its
officials, directors, officers, employees and agents free and harmless, pursuant to the
indemnification provisions of this Agreement, from any claim or liability arising out of any
failure or alleged failure to comply with such laws, rules or regulations.
3.12 Insurance.
3.12.1 Time for Compliance. Consultant shall not commence work
under this Agreement until it has provided evidence satisfactory to the Commission that
it has secured all insurance required under this section, in a form and with insurance
companies acceptable to the Commission. In addition, Consultant shall not allow any
subcontractor to commence work on any subcontract until it has secured all insurance
required under this section.
3.12.2 Minimum Requirements. Consultant shall, at its expense,
procure and maintain for the duration of the Agreement insurance against claims for
injuries to persons or damages to property which may arise from or in connection with the
performance of the Agreement by the Consultant, its agents, representatives, employees
or subcontractors. Consultant shall also require all of its subcontractors to procure and
maintain the same insurance for the duration of the Agreement. Such insurance shall
meet at least the following minimum levels of coverage:
(A) Minimum Scope of Insurance. Coverage shall be at
least as broad as the latest version of the following: (1) General Liability: Insurance
Services Office Commercial General Liability coverage (occurrence form CG 0001 or
exact equivalent); (2) Automobile Liability: Insurance Services Office Business Auto
Coverage (form CA 0001, code 1 (any auto) or exact equivalent); and (3) Workers’
Compensation and Employer’s Liability: Workers’ Compensation insurance as required
by the State of California and Employer’s Liability Insurance.
(B) Minimum Limits of Insurance. Consultant shall
maintain limits no less than: (1) General Liability: $2,000,000 per occurrence for bodily
injury, personal injury and property damage. If Commercial General Liability Insurance
or other form with general aggregate limit is used, either the general aggregate limit shall
apply separately to this Agreement/location or the general aggregate limit shall be twice
the required occurrence limit; (2) Automobile Liability: $1,000,000 per accident for bodily
injury and property damage; and (3) if Consultant has an employees, Workers’
Compensation and Employer’s Liability: Workers’ Compensation limits as required by the
Labor Code of the State of California. Employer’s Practices Liability limits of $1,000,000
per accident.
3.12.3 Professional Liability. Consultant shall procure and maintain,
and require its sub-consultants to procure and maintain, for a period of five (5) years
following completion of the Project, errors and omissions liability insurance appropriate to
their profession. Such insurance shall be in an amount not less than $1,000,000 per
claim. This insurance shall be endorsed to include contractual liability applicable to this
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Agreement and shall be written on a policy form coverage specifically designed to protect
against acts, errors or omissions of the Consultant. “Covered Professional Services” as
designated in the policy must specifically include work performed under this Agreement.
The policy must “pay on behalf of” the insured and must include a provision establishing
the insurer's duty to defend.
3.12.4 Insurance Endorsements. The insurance policies shall
contain the following provisions, or Consultant shall provide endorsements on forms
approved by the Commission to add the following provisions to the insurance policies:
(A) General Liability.
(i) Commercial General Liability Insurance must
include coverage for (1) bodily injury and property damage; (2) personal Injury/Advertising
injury; (3) premises/operations liability; (4) products/completed operations liability; (5)
aggregate limits that apply per project; (6) explosion, collapse and underground (UCX)
exclusion deleted; (7) contractual liability with respect to this Agreement; (8) broad form
property damage; and (9) independent consultants coverage.
(ii) The policy shall contain no endorsements or
provisions limiting coverage for (1) contractual liability; (2) cross liability exclusion for
claims or suits by one insured against another; or (3) contain any other exclusion contrary
to this Agreement.
(iii) The policy shall give the Commission, its
directors, officials, officers, employees, and agents insured status using ISO endorsement
forms 20 10 10 01 and 20 37 10 01, or endorsements providing the exact same coverage.
(iv) The additional insured coverage under the
policy shall be “primary and non-contributory” and will not seek contribution from the
Commission’s insurance or self-insurance and shall be at least as broad as CG 20 01 04
13, or endorsements providing the exact same coverage.
(B) Automobile Liability. The automobile liability policy
shall be endorsed to state that: (1) the Commission, its directors, officials, officers,
employees and agents shall be covered as additional insureds with respect to the
ownership, operation, maintenance, use, loading or unloading of any auto owned, leased,
hired or borrowed by the Consultant or for which the Consultant is responsible; and (2)
the insurance coverage shall be primary insurance as respects the Commission, its
directors, officials, officers, employees and agents, or if excess, shall stand in an
unbroken chain of coverage excess of the Consultant’s scheduled underlying coverage.
Any insurance or self-insurance maintained by the Commission, its directors, officials,
officers, employees and agents shall be excess of the Consultant’s insurance and shall
not be called upon to contribute with it in any way.
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(C) Workers’ Compensation and Employers Liability
Coverage.
(i) Consultant certifies that he/she is aware of the
provisions of Section 3700 of the California Labor Code which requires every employer
to be insured against liability for workers’ compensation or to undertake self-insurance in
accordance with the provisions of that code, and he/she will comply with such provisions
before commencing work under this Agreement.
(ii) The insurer shall agree to waive all rights of
subrogation against the Commission, its directors, officials, officers, employees and
agents for losses paid under the terms of the insurance policy which arise from work
performed by the Consultant.
(D) All Coverages.
(i) Defense costs shall be payable in addition to the
limits set forth hereunder.
(ii) Requirements of specific coverage or limits
contained in this section are not intended as a limitation on coverage, limits, or other
requirement, or a waiver of any coverage normally provided by any insurance. It shall be
a requirement under this Agreement that any available insurance proceeds broader than
or in excess of the specified minimum insurance coverage requirements and/or limits set
forth herein shall be available to the Commission, its directors, officials, officers,
employees and agents as additional insureds under said policies. Furthermore, the
requirements for coverage and limits shall be (1) the minimum coverage and limits
specified in this Agreement; or (2) the broader coverage and maximum limits of coverage
of any insurance policy or proceeds available to the named insured; whichever is greater.
(iii) The limits of insurance required in this
Agreement may be satisfied by a combination of primary and umbrella or excess
insurance. Any umbrella or excess insurance shall contain or be endorsed to contain a
provision that such coverage shall also apply on a primary and non-contributory basis for
the benefit of the Commission (if agreed to in a written contract or agreement) before the
Commission’s own insurance or self-insurance shall be called upon to protect it as a
named insured. The umbrella/excess policy shall be provided on a “following form” basis
with coverage at least as broad as provided on the underlying policy(ies).
(iv) Consultant shall provide the Commission at
least thirty (30) days prior written notice of cancellation of any policy required by this
Agreement, except that the Consultant shall provide at least ten (10) days prior written
notice of cancellation of any such policy due to non-payment of premium. If any of the
required coverage is cancelled or expires during the term of this Agreement, the
Consultant shall deliver renewal certificate(s) including the General Liability Additional
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Insured Endorsement to the Commission at least ten (10) days prior to the effective date
of cancellation or expiration.
(v) The retroactive date (if any) of each policy is to
be no later than the effective date of this Agreement. Consultant shall maintain such
coverage continuously for a period of at least three years after the completion of the work
under this Agreement. Consultant shall purchase a one (1) year extended reporting
period A) if the retroactive date is advanced past the effective date of this Agreement; B)
if the policy is cancelled or not renewed; or C) if the policy is replaced by another claims-
made policy with a retroactive date subsequent to the effective date of this Agreement.
(vi) The foregoing requirements as to the types and
limits of insurance coverage to be maintained by Consultant, and any approval of said
insurance by the Commission, is not intended to and shall not in any manner limit or
qualify the liabilities and obligations otherwise assumed by the Consultant pursuant to
this Agreement, including but not limited to, the provisions concerning indemnification.
(vii) If at any time during the life of the Agreement,
any policy of insurance required under this Agreement does not comply with these
specifications or is canceled and not replaced, Commission has the right but not the duty
to obtain the insurance it deems necessary and any premium paid by Commission will be
promptly reimbursed by Consultant or Commission will withhold amounts sufficient to pay
premium from Consultant payments. In the alternative, Commission may cancel this
Agreement. The Commission may require the Consultant to provide complete copies of
all insurance policies in effect for the duration of the Project.
(viii) Neither the Commission nor any of its directors,
officials, officers, employees or agents shall be personally responsible for any liability
arising under or by virtue of this Agreement.
Each insurance policy required by this Agreement shall
be endorsed to state that:
3.12.5 Deductibles and Self-Insurance Retentions. Any deductibles
or self-insured retentions must be declared to and approved by the Commission. If the
Commission does not approve the deductibles or self-insured retentions as presented,
Consultant shall guarantee that, at the option of the Commission, either: (1) the insurer
shall reduce or eliminate such deductibles or self-insured retentions as respects the
Commission, its directors, officials, officers, employees and agents; or, (2) the Consultant
shall procure a bond guaranteeing payment of losses and related investigation costs,
claims and administrative and defense expenses.
3.12.6 Acceptability of Insurers. Insurance is to be placed with
insurers with a current A.M. Best’s rating no less than A:VIII, licensed to do business in
California, and satisfactory to the Commission.
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3.12.7 Verification of Coverage. Consultant shall furnish
Commission with original certificates of insurance and endorsements effecting coverage
required by this Agreement on forms satisfactory to the Commission. The certificates and
endorsements for each insurance policy shall be signed by a person authorized by that
insurer to bind coverage on its behalf. All certificates and endorsements must be received
and approved by the Commission before work commences. The Commission reserves
the right to require complete, certified copies of all required insurance policies, at any
time.
3.12.8 Subconsultant Insurance Requirements. Consultant shall not
allow any subcontractors or subconsultants to commence work on any subcontract until
they have provided evidence satisfactory to the Commission that they have secured all
insurance required under this section. Policies of commercial general liability insurance
provided by such subcontractors or subconsultants shall be endorsed to name the
Commission as an additional insured using ISO form CG 20 38 04 13 or an endorsement
providing the exact same coverage. If requested by Consultant, the Commission may
approve different scopes or minimum limits of insurance for particular subcontractors or
subconsultants.
3.13 Safety. Consultant shall execute and maintain its work so as to avoid
injury or damage to any person or property. In carrying out its Services, the Consultant
shall at all times be in compliance with all applicable local, state and federal laws, rules
and regulations, and shall exercise all necessary precautions for the safety of employees
appropriate to the nature of the work and the conditions under which the work is to be
performed. Safety precautions as applicable shall include, but shall not be limited to: (A)
adequate life protection and life saving equipment and procedures; (B) instructions in
accident prevention for all employees and subcontractors, such as safe walkways,
scaffolds, fall protection ladders, bridges, gang planks, confined space procedures,
trenching and shoring, equipment and other safety devices, equipment and wearing
apparel as are necessary or lawfully required to prevent accidents or injuries; and (C)
adequate facilities for the proper inspection and maintenance of all safety measures.
3.14 Fees and Payment.
3.14.1 Compensation. Consultant shall receive compensation,
including authorized reimbursements, for all Services rendered under this Agreement at
the rates set forth in Exhibit "B" attached hereto. The total compensation shall not exceed
Four Hundred Twenty-Four Thousand Nine Hundred Seventy-Seven Dollars ($424,977)
without written approval of Commission's Executive Director (“Total Compensation”).
Extra Work may be authorized, as described below, and if authorized, will be
compensated at the rates and manner set forth in this Agreement.
3.14.2 Payment of Compensation. Consultant shall submit to
Commission a monthly statement which indicates work completed and hours of Services
rendered by Consultant. The statement shall describe the amount of Services and
supplies provided since the initial commencement date, or since the start of the
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subsequent billing periods, as appropriate, through the date of the statement.
Commission shall, within 45 days of receiving such statement, review the statement and
pay all approved charges thereon.
3.14.3 Reimbursement for Expenses. Consultant shall not be
reimbursed for any expenses unless authorized in writing by Commission.
3.14.4 Extra Work. At any time during the term of this Agreement,
Commission may request that Consultant perform Extra Work. As used herein, "Extra
Work" means any work which is determined by Commission to be necessary for the
proper completion of the Project, but which the parties did not reasonably anticipate would
be necessary at the execution of this Agreement. Consultant shall not perform, nor be
compensated for, Extra Work without written authorization from Commission's Executive
Director.
3.15 Accounting Records. Consultant shall maintain complete and
accurate records with respect to all costs and expenses incurred and fees charged under
this Agreement. All such records shall be clearly identifiable. Consultant shall allow a
representative of Commission during normal business hours to examine, audit, and make
transcripts or copies of such records and any other documents created pursuant to this
Agreement. Consultant shall allow inspection of all work, data, documents, proceedings,
and activities related to the Agreement for a period of three (3) years from the date of final
payment under this Agreement.
3.16 Termination of Agreement.
3.16.1 Grounds for Termination. Commission may, by written notice
to Consultant, terminate the whole or any part of this Agreement at any time and without
cause by giving written notice to Consultant of such termination, and specifying the
effective date thereof. Upon termination, Consultant shall be compensated only for those
services which have been fully and adequately rendered to Commission through the
effective date of the termination, and Consultant shall be entitled to no further
compensation. Consultant may not terminate this Agreement except for cause.
3.16.2 Effect of Termination. If this Agreement is terminated as
provided herein, Commission may require Consultant to provide all finished or unfinished
Documents and Data, as defined below, and other information of any kind prepared by
Consultant in connection with the performance of Services under this Agreement.
Consultant shall be required to provide such document and other information within fifteen
(15) days of the request.
3.16.3 Additional Services. In the event this Agreement is terminated
in whole or in part as provided herein, Commission may procure, upon such terms and in
such manner as it may determine appropriate, services similar to those terminated.
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3.17 Delivery of Notices. All notices permitted or required under this
Agreement shall be given to the respective parties at the following address, or at such
other address as the respective parties may provide in writing for this purpose:
CONSULTANT: COMMISSION:
Eide Bailly LLP Riverside County
19340 Jesse Ln. Transportation Commission
Suite 260 4080 Lemon Street, 3rd Floor
Riverside, CA 92508 Riverside, CA 92501
Attn: Roger Alfaro Attn: Executive Director
Such notice shall be deemed made when personally delivered or when
mailed, forty-eight (48) hours after deposit in the U.S. Mail, first class postage prepaid
and addressed to the party at its applicable address. Actual notice shall be deemed
adequate notice on the date actual notice occurred, regardless of the method of service.
3.18 Ownership of Materials/Confidentiality.
3.18.1 Documents & Data. This Agreement creates an exclusive and
perpetual license for Commission to copy, use, modify, reuse, or sub-license any and all
copyrights and designs embodied in plans, specifications, studies, drawings, estimates,
materials, data and other documents or works of authorship fixed in any tangible medium
of expression, including but not limited to, physical drawings or data magnetically or
otherwise recorded on computer diskettes, which are prepared or caused to be prepared
by Consultant under this Agreement (“Documents & Data”).
Consultant shall require all subcontractors to agree in writing that
Commission is granted an exclusive and perpetual license for any Documents & Data the
subcontractor prepares under this Agreement.
Consultant represents and warrants that Consultant has the legal
right to grant the exclusive and perpetual license for all such Documents & Data.
Consultant makes no such representation and warranty in regard to Documents & Data
which were prepared by design professionals other than Consultant or provided to
Consultant by the Commission.
Commission shall not be limited in any way in its use of the
Documents & Data at any time, provided that any such use not within the purposes
intended by this Agreement shall be at Commission’s sole risk.
All programs, working papers, files and other materials of the
Consultant made pursuant to this Agreement shall remain the property of the Consultant.
The Commission will have access to this material at any time. All reports delivered by the
Consultant and its subcontractors pursuant to the Agreement shall become the property
of the Commission without restriction or limitation on their use and shall be made available
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upon request, to the Commission at any time. Original copies of the deliverable reports
shall be delivered to the Commission upon completion of the Services or termination of
the Services. The Consultant shall be permitted to retain copies of such items for the
furtherance of its technical proficiency; however, publication of this material is subject to
the written approval of the Commission.
3.18.2 Intellectual Property. In addition, Commission shall have and
retain all right, title and interest (including copyright, patent, trade secret and other
proprietary rights) in all plans, specifications, studies, drawings, estimates, materials,
data, computer programs or software and source code, enhancements, documents, and
any and all works of authorship fixed in any tangible medium or expression, including but
not limited to, physical drawings or other data magnetically or otherwise recorded on
computer media (“Intellectual Property”) prepared or developed by or on behalf of
Consultant under this Agreement as well as any other such Intellectual Property prepared
or developed by or on behalf of Consultant under this Agreement.
The Commission shall have and retain all right, title and interest in
Intellectual Property developed or modified under this Agreement whether or not paid for
wholly or in part by Commission, whether or not developed in conjunction with Consultant,
and whether or not developed by Consultant. Consultant will execute separate written
assignments of any and all rights to the above referenced Intellectual Property upon
request of Commission.
Consultant shall also be responsible to obtain in writing separate
written assignments from any subcontractors or agents of Consultant of any and all right
to the above referenced Intellectual Property. Should Consultant, either during or
following termination of this Agreement, desire to use any of the above-referenced
Intellectual Property, it shall first obtain the written approval of the Commission.
All materials and documents which were developed or prepared by
the Consultant for general use prior to the execution of this Agreement and which are not
the copyright of any other party or publicly available and any other computer applications,
shall continue to be the property of the Consultant. However, unless otherwise identified
and stated prior to execution of this Agreement, Consultant represents and warrants that
it has the right to grant the exclusive and perpetual license for all such Intellectual Property
as provided herein.
Commission further is granted by Consultant a non-exclusive and
perpetual license to copy, use, modify or sub-license any and all Intellectual Property
otherwise owned by Consultant which is the basis or foundation for any derivative,
collective, insurrectional, or supplemental work created under this Agreement.
3.18.3 Confidentiality. All ideas, memoranda, specifications, plans,
procedures, drawings, descriptions, computer program data, input record data, written
information, and other Documents and Data either created by or provided to Consultant
in connection with the performance of this Agreement shall be held confidential by
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Consultant. Such materials shall not, without the prior written consent of Commission, be
used by Consultant for any purposes other than the performance of the Services. Nor
shall such materials be disclosed to any person or entity not connected with the
performance of the Services or the Project. Nothing furnished to Consultant which is
otherwise known to Consultant or is generally known, or has become known, to the
related industry shall be deemed confidential. Consultant shall not use Commission's
name or insignia, photographs of the Project, or any publicity pertaining to the Services
or the Project in any magazine, trade paper, newspaper, television or radio production or
other similar medium without the prior written consent of Commission.
3.18.4 Infringement Indemnification. Consultant shall defend,
indemnify and hold the Commission, its directors, officials, officers, employees,
volunteers and agents free and harmless, pursuant to the indemnification provisions of
this Agreement, for any alleged infringement of any patent, copyright, trade secret, trade
name, trademark, or any other proprietary right of any person or entity in consequence of
the use on the Project by Commission of the Documents & Data, including any method,
process, product, or concept specified or depicted.
3.19 Cooperation; Further Acts. The Parties shall fully cooperate with one
another, and shall take any additional acts or sign any additional documents as may be
necessary, appropriate or convenient to attain the purposes of this Agreement.
3.20 Attorney's Fees. If either party commences an action against the
other party, either legal, administrative or otherwise, arising out of or in connection with
this Agreement, the prevailing party in such litigation shall be entitled to have and recover
from the losing party reasonable attorney's fees and costs of such actions.
3.21 Indemnification. Consultant shall defend, indemnify and hold the
Commission, its directors, officials, officers, agents, consultants, employees and
volunteers free and harmless from any and all claims, demands, causes of action, costs,
expenses, liabilities, losses, damages or injuries, in law or in equity, to property or
persons, including wrongful death, in any manner arising out of or incident to any alleged
negligent acts, omissions or willful misconduct of the Consultant, its officials, officers,
employees, agents, consultants, and contractors arising out of or in connection with the
performance of the Services, the Project or this Agreement, including without limitation,
the payment of all consequential damages, attorneys fees and other related costs and
expenses. Consultant shall defend, at Consultant’s own cost, expense and risk, any and
all such aforesaid suits, actions or other legal proceedings of every kind that may be
brought or instituted against the Commission, its directors, officials, officers, agents,
consultants, employees and volunteers. Consultant shall pay and satisfy any judgment,
award or decree that may be rendered against the Commission or its directors, officials,
officers, agents, consultants, employees and volunteers, in any such suit, action or other
legal proceeding. Consultant shall reimburse the Commission and its directors, officials,
officers, agents, consultants, employees and volunteers, for any and all legal expenses
and costs, including reasonable attorney’s fees, incurred by each of them in connection
therewith or in enforcing the indemnity herein provided. Consultant’s obligation to
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indemnity shall not be restricted to insurance proceeds, if any, received by the
Commission or its directors, officials, officers, agents, consultants, employees and
volunteers. This Section 3.21 shall survive any expiration or termination of this
Agreement.
3.22 Entire Agreement. This Agreement contains the entire Agreement
of the parties with respect to the subject matter hereof, and supersedes all prior
negotiations, understandings or agreements. This Agreement may only be
supplemented, amended, or modified by a writing signed by both parties.
3.23 Governing Law. This Agreement shall be governed by the laws of
the State of California. Venue shall be in Riverside County.
3.24 Time of Essence. Time is of the essence for each and every
provision of this Agreement.
3.25 Commission's Right to Employ Other Consultants. The Commission
reserves the right to employ other consultants in connection with this Project.
3.26 Successors and Assigns. This Agreement shall be binding on the
successors and assigns of the parties, and shall not be assigned by Consultant without
the prior written consent of Commission.
3.27 Prohibited Interests and Conflicts.
3.27.1 Solicitation. Consultant maintains and warrants that it has not
employed nor retained any company or person, other than a bona fide employee working
solely for Consultant, to solicit or secure this Agreement. Further, Consultant warrants
that it has not paid nor has it agreed to pay any company or person, other than a bona
fide employee working solely for Consultant, any fee, commission, percentage, brokerage
fee, gift or other consideration contingent upon or resulting from the award or making of
this Agreement. For breach or violation of this warranty, Commission shall have the right
to rescind this Agreement without liability.
3.27.2 Conflict of Interest. For the term of this Agreement, no
member, officer or employee of Commission, during the term of his or her service with
Commission, shall have any direct interest in this Agreement, or obtain any present or
anticipated material benefit arising therefrom.
3.27.3 Conflict of Employment. Employment by the Consultant of
personnel currently on the payroll of the Commission shall not be permitted in the
performance of this Agreement, even though such employment may occur outside of the
employee’s regular working hours or on weekends, holidays or vacation time. Further,
the employment by the Consultant of personnel who have been on the Commission
payroll within one year prior to the date of execution of this Agreement, where this
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employment is caused by and or dependent upon the Consultant securing this or related
Agreements with the Commission, is prohibited.
3.27.4 Employment Adverse to the Commission. Consultant shall
notify the Commission, and shall obtain the Commission’s written consent, prior to
accepting work to assist with or participate in a third-party lawsuit or other legal or
administrative proceeding against the Commission during the term of this Agreement.
3.28 Equal Opportunity Employment. Consultant represents that it is an
equal opportunity employer and it shall not discriminate against any employee or
applicant for employment because of race, religion, color, national origin, ancestry, sex
or age. Such non-discrimination shall include, but not be limited to, all activities related
to initial employment, upgrading, demotion, transfer, recruitment or recruitment
advertising, layoff or termination. Consultant shall also comply with all relevant provisions
of Commission's Disadvantaged Business Enterprise program, Affirmative Action Plan or
other related Commission programs or guidelines currently in effect or hereinafter
enacted.
3.29 Subcontracting. Consultant shall not subcontract any portion of the
work or Services required by this Agreement, except as expressly stated herein, without
prior written approval of the Commission. Subcontracts, if any, shall contain a provision
making them subject to all provisions stipulated in this Agreement.
3.30 Reserved.
3.31 Employment of Apprentices. This Agreement shall not prevent the
employment of properly indentured apprentices in accordance with the California Labor
Code, and no employer or labor union shall refuse to accept otherwise qualified
employees as indentured apprentices on the work performed hereunder solely on the
ground of race, creed, national origin, ancestry, color or sex. Every qualified apprentice
shall be paid the standard wage paid to apprentices under the regulations of the craft or
trade in which he or she is employed and shall be employed only in the craft or trade to
which he or she is registered.
3.32 No Waiver. Failure of Commission to insist on any one occasion
upon strict compliance with any of the terms, covenants or conditions hereof shall not be
deemed a waiver of such term, covenant or condition, nor shall any waiver or
relinquishment of any rights or powers hereunder at any one time or more times be
deemed a waiver or relinquishment of such other right or power at any other time or times.
3.33 Eight-Hour Law. Pursuant to the provisions of the California Labor
Code, eight hours of labor shall constitute a legal day's work, and the time of service of
any worker employed on the work shall be limited and restricted to eight hours during any
one calendar day, and forty hours in any one calendar week, except when payment for
overtime is made at not less than one and one-half the basic rate for all hours worked in
excess of eight hours per day ("Eight-Hour Law"), unless Consultant or the Services are
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not subject to the Eight-Hour Law. Consultant shall forfeit to Commission as a penalty,
$50.00 for each worker employed in the execution of this Agreement by him, or by any
sub-consultant under him, for each calendar day during which such workman is required
or permitted to work more than eight hours in any calendar day and forty hours in any one
calendar week without such compensation for overtime violation of the provisions of the
California Labor Code, unless Consultant or the Services are not subject to the Eight-
Hour Law.
3.34 Subpoenas or Court Orders. Should Consultant receive a subpoena
or court order related to this Agreement, the Services or the Project, Consultant shall
immediately provide written notice of the subpoena or court order to the Commission.
Consultant shall not respond to any such subpoena or court order until notice to the
Commission is provided as required herein, and shall cooperate with the Commission in
responding to the subpoena or court order.
3.35 Survival. All rights and obligations hereunder that by their nature are
to continue after any expiration or termination of this Agreement, including, but not limited
to, the indemnification and confidentiality obligations, and the obligations related to receipt
of subpoenas or court orders, shall survive any such expiration or termination.
3.36 No Third Party Beneficiaries. There are no intended third party
beneficiaries of any right or obligation assumed by the Parties.
3.37 Labor Certification. By its signature hereunder, Consultant certifies
that it is aware of the provisions of Section 3700 of the California Labor Code which
require every employer to be insured against liability for Workers’ Compensation or to
undertake self-insurance in accordance with the provisions of that Code, and agrees to
comply with such provisions before commencing the performance of the Services.
3.38 Counterparts. This Agreement may be signed in counterparts, each
of which shall constitute an original.
3.39 Incorporation of Recitals. The recitals set forth above are true and
correct and are incorporated into this Agreement as though fully set forth herein.
3.40 Invalidity; Severability. If any portion of this Agreement is declared
invalid, illegal, or otherwise unenforceable by a court of competent jurisdiction, the
remaining provisions shall continue in full force and effect.
3.41 Conflicting Provisions. In the event that provisions of any attached
exhibits conflict in any way with the provisions set forth in this Agreement, the language,
terms and conditions contained in this Agreement shall control the actions and obligations
of the Parties and the interpretation of the Parties’ understanding concerning the
performance of the Services.
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3.42 Headings. Article and Section Headings, paragraph captions or
marginal headings contained in this Agreement are for convenience only and shall have
no effect in the construction or interpretation of any provision herein.
3.43 Assignment or Transfer. Consultant shall not assign, hypothecate,
or transfer, either directly or by operation of law, this Agreement or any interest herein,
without the prior written consent of the Commission. Any attempt to do so shall be null
and void, and any assignees, hypothecates or transferees shall acquire no right or interest
by reason of such attempted assignment, hypothecation or transfer.
3.44 Authority to Enter Agreement. Consultant has all requisite power and
authority to conduct its business and to execute, deliver, and perform the Agreement.
Each Party warrants that the individuals who have signed this Agreement have the legal
power, right, and authority to make this Agreement and bind each respective Party.
[SIGNATURES ON FOLLOWING PAGE]
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SIGNATURE PAGE
TO
RIVERSIDE COUNTY TRANSPORTATION COMMISSION
AGREEMENT FOR AUDIT AND ATTESTATION SERVICES
FOR THE WESTERN RIVERSIDE COUNTY
MEASURE A RECIPIENTS AND
TRANSPORTATION DEVELOPMENT ACT CLAIMANTS
OF THE
RIVERSIDE COUNTY TRANSPORTATION COMMISSION
AND THE MEMBER AGENCIES
OF THE
WESTERN RIVERSIDE COUNTY
REGIONAL CONSERVATION AUTHORITY
WITH EIDE BAILLY LLP
IN WITNESS WHEREOF, this Agreement was executed on the date first
written above.
RIVERSIDE COUNTY
TRANSPORTATION COMMISSION EIDE BAILLY LLP
By: _________________________ By: ____________________________
Anne Mayer Signature
Executive Director
__________________________
Name
__________________________
Title
Approved as to Form: Attest:
By:____________________________ By: ________________________
Best Best & Krieger LLP Its: Secretary
General Counsel
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EXHIBIT "A"
STATEMENT OF SERVICES
[TO BE INSERTED BEHIND THIS PAGE]
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EXHIBIT A - 1
Statement of Services
A. General
The Riverside County Transportation Commission (RCTC), as the transportation planning agency
for Riverside County and the managing agency for the Western Riverside County Regional
Conservation Authority (RCA), is issuing this Request for Proposal in order to secure services
from a Consultant(s) of certified public accountants to perform for the fiscal years ending June
30, 2021, 2022, and 2023, with the option of performing such services for three (3) additional one-
year terms:
Financial and compliance audits of RCTC’s Transportation Development Act (TDA)
claimants for transit (including funding from Local Transportation Fund (LTF) Article 4,
State Transit Assistance (STA), State of Good Repair (SGR), Low Carbon Transit
Operations Program (LCTOP), and Proposition 1B);
Financial and compliance audits of RCTC’s TDA claimants for bicycle and pedestrian
projects (consisting of funding from LTF Article 3);
Agreed-upon procedures similar to those proposed in Appendix A, Section G, for RCTC’s
Measure A recipients of local streets and roads (LSR) funding;
Agreed-upon procedures similar to those proposed in Appendix A, Section H, for RCTC’s
Measure A recipients of specialized transit funding; and
Agreed upon procedures similar to those proposed in Appendix A, Section I, for RCA’s
Member Agencies related to the collection and remittance of mitigation fees in accordance
with each Member Agency’s Multiple Species Habitat Conservation Plan (MSHCP)
Ordinance (with amendments).
Measure A Agreed Upon Procedures
The Measure A Specialized Transit Agreed-Upon Procedures apply to Western County non-
profit and community organizations awarded funding for specialized transit services for a three-
year period through a competitive call for projects. The FY 2020/21 funding awarded at RCTC’s
April 11, 2018 meeting represents the final year of the FY 2018/19 – 2020/21 Call for Projects.
Staff expects that the awards for the FY 2021/22 – 2023/24 Call for Projects will be approved by
RCTC at the April 14, 2021 meeting, as noted in the FY 2021/22 – 2023/24 Measure A Specialized
Transit Call for Projects Guidelines presented at the January 13, 2021 RCTC meeting. FY
2024/25 – FY 2025/26 funding will be determined by the FY 2024/25 – 2026/27 Call for Projects
to be awarded in Spring 2024.
The Measure A LSR Agreed-Upon Procedures apply to all eligible cities in Riverside County
and the County of Riverside. Measure A LSR funding is allocated and disbursed monthly to the
cities and the County of Riverside, as specified in Measure A. RCTC does not currently anticipate
any incorporations or dis-incorporations of cities that would result in a change in Measure A LSR
recipients. Currently, all cities and the County of Riverside meet the eligibility requirements that
include:
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Participation in the Western County or Coachella Valley Transportation Uniform Mitigation
Fee (TUMF) Program, as applicable;
Participation in the RCA’s MSHCP, as applicable;
Annual submittal of a 5-Year Capital Improvement Plan (CIP) list of projects;
Annual Maintenance of Effort certification; and
Annual Project Status Report for the prior fiscal year CIP.
Transportation Development Act Audits
The TDA Transit audits will be performed for the municipal transit operators in the Western
County cities of Banning, Beaumont, Corona, and Riverside. TDA Transit operating and capital
allocations are approved annually by RCTC in June based on the submittal of each transit
operator’s Short-Range Transit Plan. The transit operators also may unexpended Proposition 1B
funding for capital/rehabilitation and/or security projects received through Caltrans and the
California Office of Emergency Services (CalOES), respectively.
The TDA Bicycle and Pedestrian audits apply to local jurisdictions awarded funding by RCTC
for bicycle and pedestrian projects through a biennial competitive call for projects. Local
jurisdictions generally have two years to complete projects, including those projects approved in
the FY 2019/20 Call for Projects at RCTC’s June 12, 2019 meeting. However, as per revised
guidelines approved by RCTC at its January 13, 2021 meeting effective with the FY 2021/22 Call
for Projects to be awarded at the June 9, 2021 RCTC meeting, local jurisdictions will now have
three years to complete projects. Claimants may request disbursement of their allocations by
RCTC on a reimbursement basis in accordance with RCTC’s policies. Accordingly, the TDA
Bicycle and Pedestrian audits are dependent on claims for expenditures of such funds.
MSHCP Agreed Upon Procedures
The MSHCP Agreed-Upon Procedures are required for local jurisdictions that are signatories to
the Joint Exercise of Powers Agreement forming the RCA. They include the 18 Western County
cities and the County of Riverside. The Member Agencies form the independent RCA Board of
Directors to acquire, administer, operate, and maintain land and facilities to establish habitat
reserves for the conservation and protection of species covered by the MSHCP and to implement
the MSHCP.
At its December 7, 2020 meeting, the RCA adopted the 2020 Nexus Study and increase in Local
Development Mitigation Fees (LDMF). The LDMF increase is effective in two phases. The first
phase, an increase of 50%, is effective July 1, 2021. The second phase, full implementation, is
effective January 1, 2022. Member Agencies must prepare an ordinance and resolution to be
considered and approved by the city council (Board of Supervisors in the case of the County of
Riverside) in time to implement the new fee by July 1, 2021. Final action of the city council/Board
of Supervisors must be no later than May 2, 2021 to ensure the new ordinance takes effect by
July 1, 2021 in accordance with California Government Code Section 66017. Per the
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Implementing Agreement with the cities and the County of Riverside signed, the cities and County
must adopt the ordinance, “in substantially the same form or at a minimum, containing the same
requirements as the model ordinance,” adopted by the RCA Board of Directors.
Anticipated Changes in Audit and Attestation Services
RCTC does not anticipate any change in the local jurisdictions subject to TDA Transit audit and
Measure A LSR attestation services; RCA does not anticipate any change in the local jurisdictions
subject to MSHCP attestation services. The agencies requiring Measure A Specialized Transit
and the local jurisdictions requiring TDA Bicycle and Pedestrian audits will be determined each
year based on actual disbursements.
The Chief Financial Officer is designated as the coordinator of the work and may appoint a
Finance Department staff to coordinate day-to-day oversight. The Chief Financial Officer will
serve as the liaison to the audit oversight committee designated by RCTC and the Executive
Committee designated by RCA.
The audits are to be performed by the Consultant(s) in accordance with generally accepted
auditing standards, including use of the most current version of each of the following standards
and guidelines:
American Institute of Certified Public Accountants audit and attestation standards;
General Accounting Office’s (GAO) Government Auditing Standards;
Measure A conformance requirements (Section I);
Transit requirements (Section J); and
MSHCP requirements (Section K).
B. Scope of Work to be Performed
The selected Consultant(s) will be required to perform the following tasks:
Audit of the transit and transportation financial statements of the jurisdictions receiving
TDA funds in accordance with auditing standards generally accepted in the United States
of America; the standards applicable to financial audits contained in Government Auditing
Standards, issued by the Comptroller General of the United States; the TDA as
summarized in the TDA Guidebook; and SGR, LCTOP, and Proposition 1B audit
guidelines specified by Caltrans and CalOES.
Performance of agreed-upon procedures similar to those listed in Section F solely to assist
RCTC in evaluating the applicable jurisdictions’ Measure A transportation funds and
degree of their compliance with RCTC’s requirements of the Measure A LSR program.
RCTC reserves the right to modify the agreed-upon procedures as deemed necessary to
fulfill its oversight responsibilities for the Measure A LSR program.
Performance of agreed-upon procedures similar to those listed in Section G solely to
assist RCTC in evaluating the applicable jurisdictions’/agencies’ Measure A specialized
transit funds and degree of their compliance with RCTC’s requirements of the Measure A
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specialized transit program. RCTC reserves the right to modify the agreed-upon
procedures as deemed necessary to fulfill its oversight responsibilities for the Measure A
Specialized Transit program.
Performance of agreed-upon procedures similar to those listed in Section H solely to assist
RCA in evaluating if fees are collected and remitted in accordance with each Member
Agency’s MSHCP Mitigation Fee Ordinance (with amendments). RCTC reserves the right
to modify the agreed-upon procedures as deemed necessary to fulfill its oversight
responsibilities for the MSHCP, including RCA changes to the LDMF affecting Member
Agency MSHCP Mitigation Fee Ordinances and adoption of a related resolution.
C. Deliverables
Following completion of the audits and agreed-upon procedures and a review of the draft reports
by RCTC, the Consultant(s) shall issue:
A report on the fair presentation of the financial statements for the TDA claimants in
conformity with generally accepted accounting principles and on compliance and internal
control.
A report on the agreed-upon procedures related to the Measure A recipients of LSR
funding.
A report on the agreed-upon procedures related to the Measure A recipients of specialized
transit funding.
A report on the agreed-upon procedures related to the MSHCP fee collection and
remittance.
Drafts of the reports will be provided to RCTC staff and the applicable TDA claimant, Measure A
recipient, or Member Agency. The Chief Financial Officer or designee shall review and approve
each report prior to issuance.
For each report issued to RCTC, the Consultant shall issue one PDF copy to RCTC and one PDF
to the applicable TDA claimant or Measure A recipient, as applicable.
For each report issued to RCA, the Consultant shall print three (3) copies and issue one PDF
copy to RCA.
Financial and Compliance Reports
The Consultant will submit a financial and compliance report for each TDA audit. The Consultant
will be responsible for the preparation, editing, and printing of all financial and compliance reports,
including the financial statements and notes to the financial statements. Although the Consultant
will prepare the financial statements, management of the TDA Claimant is responsible for the
financial statements.
Agreed-Upon Procedures
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The Consultant will submit a report for each Measure A recipient or Member Agency, as
applicable, listing the procedures performed, results of procedures performed, and findings, if any.
The Consultant will be responsible for preparation, editing, and printing of all agreed-upon
procedure reports.
D. Required Communications
Significant Deficiencies – In the required reports on compliance and internal controls, the
Consultant shall communicate any significant deficiencies found during the audit of the TDA
claimants. A significant deficiency shall be defined as a control deficiency, or combination of
control deficiencies, that adversely affects the entity’s ability to initiate, authorize, record, process,
or report financial data reliably in accordance with generally accepted accounting principles such
that there is more than a remote likelihood that a misstatement of the entity’s financial statements
that is more than inconsequential will not be prevented or detected by the entity’s internal control.
Significant deficiencies that are also material weaknesses shall be identified as such in the report.
Other control deficiencies discovered by the Consultant may be reported in a separate letter to
management, which shall be referred to in the reports on compliance and internal controls.
The report on compliance and internal controls shall include all material instances of
noncompliance. All nonmaterial instances of noncompliance may be reported in a separate
management letter, which shall be referred to in the report on compliance and internal controls.
Irregularities and illegal acts – The Consultant shall be required to make an immediate, written
report of all irregularities and illegal acts or indication of illegal acts of which they become aware
to the jurisdiction/agency and RCTC’s/RCA’s audit oversight committee, Executive Director, and
Chief Financial Officer.
Planning meetings – The Consultant shall meet with RCTC staff at least once a year prior to the
commencement of the audits and agreed-upon procedures.
E. Audit Schedule
The work to be performed at the jurisdictions and agencies shall be arranged by the Consultant
with the individual jurisdiction or agency after the conclusion of a planning meeting with RCTC
and RCTC’s issuance of audit notification letters to each jurisdiction and agency.
The RCTC work should be scheduled for no later than November 15 of each year. Barring
unforeseen circumstances, the Consultant must conduct the work activities and provide all
required reports and information to RCTC no later than December 31 of each year. The TDA
audits are required to be submitted to the State Controller by December 31 of each year; however,
an extension may be granted by RCTC for no more than 90 days. RCTC’s policy for Measure A
reports follows the TDA requirement; however, a formal extension is generally not issued.
RCA is required to annually certify to RCTC by June 30 that local jurisdictions participating in the
MSHCP comply with the MSHCP participation requirements to collect and remit fees in
accordance with each Member Agency’s MSHCP Ordinance (with amendments). Accordingly,
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the RCA requires all agreed-upon procedures reports to be issued by February 28 in the year
following the fiscal year for which the agreed-upon procedures are performed.
The Consultant shall keep RCTC apprised at least monthly on the status of the audits and any
issues which have been encountered. RCTC will provide assistance, to the extent necessary
and/or possible, to resolve such issues. If circumstances outside the control of the Consultant or
RCTC or the RCA arise and the deadline cannot be met, both parties agree to communicate the
circumstances and develop an action plan.
F. Measure A Proposed Local Streets and Roads Agreed-Upon Procedures (Proposed)
1. Review the 2009 Measure A (Ordinance 02-001) compliance requirements. Western
County jurisdictions are required to participate in the Transportation Uniform Mitigation
Fee (TUMF) program and in the Multi-Species Habitat Conservation Plan (MSHCP),
which are administered by the Western Riverside Council of Governments (WRCOG)
and the Western Riverside County Regional Conservation Authority (RCA),
respectively. Coachella Valley jurisdictions are required to participate in the TUMF
program administered by the Coachella Valley Association of Governments (CVAG).
Indicate participation in TUMF and/or MSHCP programs.
2. Obtain from RCTC the approved Five-Year Capital Improvement Plan (CIP) for the
fiscal year.
3. Obtain from the jurisdiction a detail general ledger and balance sheet for the fiscal
year.
a. Identify the amount of Measure A cash and investments recorded at the end of the
fiscal year. Compare amount to Measure A fund balance and provide an
explanation for any differences greater than 25% of fund balance.
b. Identify any amounts due from other funds.
c. Identify the components of ending fund balance for the Measure A activity (e.g.,
nonspendable, restricted, assigned, committed, unassigned) [and for County of
Riverside only by geographic area].
i. Identify the existence of any restatement of Measure A fund balance; inquire
of management as to the reason for any restatement and provide a summary
of the restatement items.
ii. Compare ending fund balance to total revenues for the current year and prior
two years. If ending fund balance is greater than sum of total revenues for the
three-year period, inquire of management as to the reason(s) for the
accumulation of fund balance (e.g., status of specific projects included in the
5-Year CIP).
4. Obtain an operating statement for the Measure A activity for the fiscal year, including
budget amounts; include the operating statement as an exhibit to the report.
a. Review the revenues in the operating statement.
i. Inquire of management as to what fund is used to record Measure A revenues
received from RCTC and identify what the total revenues were for the fiscal
year.
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ii. Obtain from RCTC a listing of Measure A payments to the jurisdiction.
1. Compare the Measure A sales tax revenues recorded by the jurisdiction to
the listing of payments made by RCTC. [Use gross amounts paid by RCTC]
iii. Obtain from the jurisdiction an interest allocation schedule for the fiscal year.
1. Identify the allocation amount of interest income to Measure A activity and
what the amount of interest income was for the fiscal year. If no interest
was allocated, inquire of management as to reason for not allocating
interest income.
b. Review the expenditures in the operating statement.
i. Inquire of management as to what fund is used to record Measure A
expenditures and what the total expenditures were for the fiscal year.
ii. Select expenditures for testing that comprise at least 20% of the total
expenditures.
1. For the expenditures selected for testing, compare the dollar amount listed
on the general ledger to the supporting documentation.
2. For the expenditures selected for testing, review the 5-Year CIP and note
if the project is included in the 5-Year CIP and is an allowable cost.
iii. Inquire of management as to the nature of any transfers in or out recorded in
the Measure A fund. For any transfers out, determine if nature of transfer out
was included in the 5-Year CIP.
iv. Inquire of management as to the amount of general or non-project-related
indirect costs, if any, included in expenditures. If indirect costs exceed 8% of
Measure A revenue, inquire of management as to the basis for indirect costs
charged to Measure A. If indirect costs are identified, determine if such costs
are included in the 5-Year CIP.
v. Inquire of management as to the amount of debt service expenditures recorded
in the Measure A fund and determine is such costs are included in the 5-Year
CIP.
5. Obtain from RCTC a listing of jurisdictions who participate in the Western County or
Coachella Valley TUMF programs.
a. If the jurisdiction is a participant in the TUMF program, select at least one
disbursement for validation as to the amount remitted to WRCOG or CVAG, as
applicable.
b. Indicate the total amount of TUMF fees collected and remitted during the fiscal
year.
6. Obtain from RCTC a listing of jurisdictions who participate in the Western County
MSHCP program.
a. If the jurisdiction is a participant in the MSHCP program, select at least one
disbursement for validation as to the amount remitted to RCA, as applicable.
b. Inquire of management as to the existence of any fees collected in prior years and
not remitted to RCA as of the end of the fiscal year.
c. Indicate the total amount of MSHCP fees collected and remitted during the fiscal
year.
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7. Obtain from RCTC the MOE base year requirement, including supporting detail of the
calculations for its city/County, and the carryover amount allowed as of the beginning
of the fiscal year.
a. Obtain from the city/County a calculation of its current year MOE amount in the
format similar to its base year calculation. Attach a copy of the calculation
worksheet provided by the city/County as an exhibit to the report.
b. Compare the current year MOE amounts from the General Fund to the general
ledger.
c. Review the General Fund general ledger to determine if there were any transfers
in to fund any MOE amounts.
d. Compare the amount of current year MOE expenditures to the MOE base
requirement and add any excess to, or subtract any deficiency from, the carryover
amount.
e. If the amount of discretionary funds spent is less than the MOE base requirement
(MOE deficiency), determine the amount of any prior year MOE carryover using
the information obtained from RCTC and reduce the MOE deficiency by any
available MOE carryover to determine an adjusted current year expenditure
amount.
G. Measure A Proposed Specialized Transit Agreed-Upon Procedures (Proposed)
1. Obtain specialized transit grant funding agreement from RCTC, including exhibit of
budget submitted with funding application, matching requirements, and any budget
modifications subsequently approved by RCTC.
a. Inquire of management as to the accounting and identification of Measure A
funded programs.
b. Inquire of management as to whether the accounting of Measure A funds received
by the Agency were accounted for separately or commingled with other programs
and/or funding sources.
2. Obtain monthly reporting package for third, sixth, ninth, and last months of the annual
reporting period and revenue and expense amounts for the fiscal year from the general
ledger.
a. Recalculate totals on reporting packages.
b. Inquire of management as to the accomplishment of the applicable program goals
and source of documentation for accomplishing program goals. Agree third, sixth,
and ninth month reports provided by RCTC to source documents from Agency as
to total passenger one-way trips made or number of people served.
c. Include a summary of revenues and expenses from the general ledger for the fiscal
year compared to budgeted amounts (present in format of monthly reporting
package) as an exhibit (Exhibit A).
d. For the exhibit summary of revenues and expenses, calculate variances of
budgeted expense amounts compared to actual amounts in terms of dollars and
percentages. For expense variances greater than 25%, inquire of management
as to the existence of approval from RCTC. Determine if budgeted amounts per
Exhibit A are consistent with the current Commission-approved budget.
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e. For the exhibit summary of revenues and expenses, calculate the variance of total
budgeted expenses compared to actual total expenses in terms of dollars and
percentage.
i. If the variance is greater than 20%, inquire of management why the actual total
expenses were less than the budgeted total expenses.
f. List the total revenues and expenses from the final fiscal year reporting package
(“Check Sum” tab) and calculate the difference between funding received and
expenses/capital expenditures incurred as per Exhibit A. For any variances, inquire
of management as to the nature of the changes in originally reported revenues
and/or expenses.
3. Determine if funding agreement includes requirement for matching contributions. If
agency was required to provide matching contributions, perform the following
procedures:
a. Review RCTC’s policy on qualifying in-kind matching contributions.
b. Inquire of management how matching requirements per the funding agreement
were satisfied (i.e., sources) and what the total dollar value was for cash match
and for in-kind matching contributions. Indicate if cash and in-kind matching
amounts were not met, met, or exceeded, as applicable.
i. If match was not met based on budget match requirement, compare actual
Measure A revenues to budgeted Measure A revenues. If full amount of
budgeted Measure A was not received, the minimum match requirement
should also be reduced by a proportionate amount in order to determine the
adjusted match requirement.
ii. If adjusted match requirement was not met, inquire of management as to
explanation for shortfall in meeting adjusted match requirement.
c. If source of match was in-kind contributions, inquire of management as to the
following:
i. If such contributions were made by a third party.
ii. If such third party contributions were related to property or services which
benefited the project or program and which were contributed by third parties
without charge to the grantee, or through a modified cost arrangement;
iii. If such contributions were necessary and reasonable for the efficient
accomplishment of program objectives; and
iv. If using volunteer time, a tracking method existed to identify when donated
services were provided.
d. For in-kind matching contributions presented on the third, sixth, and ninth month
reporting packages, compare such contribution amounts to supporting
documentation provided by the third party.
e. Inquire of management if any loans were obtained or lines of credit utilized to pay
Measure A program expenses.
i. If such indebtedness was incurred, inquire of management as to the amount
and if such amount is reflected in revenues as a cash match.
4. Obtain amount of Measure A funds disbursed to Agency from RCTC for specialized
transit grant purposes for the fiscal year.
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a. Agree amount from RCTC to amount recorded by the agency.
5. Obtain a summary of expenses (Personnel, Operating, Capital) by major line item
incurred by the Agency related to the specialized transit grant; include summary as an
exhibit (Exhibit A) to the report.
a. Inquire of management how Measure A expenses are recorded (i.e., direct costs,
allocations, or indirect costs).
b. Inquire of management as to the existence of any unreported expenses related to
the Measure A specialized transit program provided by the Agency. If amounts
are not reported, obtain a summary of such amounts and inquire of management
as to why such amounts are not reported.
c. Select one pay period from personnel expenses for testing.
d. Select operating expenses for testing that comprise at least 20% of the total
expenses.
e. Select all capital expenditures for testing.
f. For the expenses/capital expenditures selected for testing, compare the dollar
amount listed on the general ledger to the supporting documentation. Additionally,
for personnel expenses, agree hours charged to Measure A specialized transit
activities to approved timesheet or other documentation.
g. For the expenses/capital expenditures selected for testing, compare the type of
expense to the allowable costs included in the funding agreement.
h. Compare the summary of expenses/capital expenditures by major line item to the
budget included in the funding agreement and note any variances.
i. Inquire of management as to the amount of indirect or overhead costs, if any,
included in expenses and compare amount to the budget included in the funding
agreement.
6. Inquire of management as to the existence of any temporarily restricted net assets or
deferred revenues as of the end of the fiscal year related to the Measure A funded
program.
a. Obtain a copy of approval letter from RCTC, if applicable, for the carryover of such
balances.
b. If temporarily restricted net assets or deferred revenues exist as of the end of the
fiscal year, inquire of management as to source of funds responsible for generating
such balances.
7. Review the prior year’s report and note the existence of any temporarily restricted net
assets or deferred revenues as of the end of the prior fiscal year; inquire of
management if such amount was used to reduce the current fiscal year disbursements
of Measure A to the Agency.
8. Inquire of management as to the rating of the Agency’s insurer for commercial general
liability insurance, business automobile liability insurance, and worker’s compensation
insurance.
H. MSHCP Member Agency Agreed-Upon Procedures (Proposed, subject to
change due to requirement to adopt new ordinance and resolution)
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1. Obtain any updates to the Member Agency’s ordinance for collection of the MSHCP
fees.
2. Upon obtaining the updates, determine if the ordinance is in accordance with the
MSHCP Implementing Agreement and Joint Powers Agreement.
3. Determine if fees on the building permits are collected in accordance with the Member
Agency ordinance.
4. Obtain the schedule of fees collected on MSHCP building permits for the year ended
June 30, 202X.
5. Obtain a listing of building permits issued during the year ended June 30, 202X.
Identify the new construction and commercial/industrial permits. Select for testing
10% of new construction and commercial/industrial building permits, selecting no less
than 25 permits or 100% of permits if total permits for new construction and
commercial/industrial is less than 25.
6. Recalculate the fees collected by the Member Agency on building permits to determine
if they are correct and if the correct amounts have been remitted to the RCA. If fees
are incorrect, determine the fees that should have been collected and remitted.
7. Determine if fees collected on building permits were remitted to the RCA within 90
days of the earlier of the date they were collected or should have been collected.
8. Determine additional amounts, if any, which should be returned to the Member Agency
for building permits.
9. If amounts are due to the RCA on building permits, calculate interest owed, based on
the RCA’s Resolution No. 07-04 adopted on September 10, 2007, using the interest
rate paid by Riverside County (County) Treasury on amounts held by the County.
10. Obtain a list of all construction (civic and infrastructure) contracts awarded by the
Member Agency during the fiscal year. Select a sample of 10% of the contracts for
testing, selecting no less than three contracts, or 100% of contracts if the total number
of contracts is less than three.
11. Compute the amount of MSHCP fees on the civic and infrastructure contracts that
should have been remitted.
12. Determine if the MSHCP fees on the civic and infrastructure contracts were remitted
to the RCA within 90 days of contract award.
13. Determine additional amounts on civic and infrastructure contracts, if any, which
should be remitted to the RCA or returned to the Member Agency.
14. If additional amounts are due to the RCA on civic and infrastructure contracts,
calculate interest owed, using the interest rate paid County Treasury on amounts held
by the County.
I. Measure A Recipient Conformance Requirements
1. Allowable Costs. Measure A funds may only be used for transportation purposes
including the administration of Division 25 including legal actions related thereto; the
construction, capital acquisition, maintenance, and operation of streets, roads,
highways including state highways and public transit systems; and for related
purposes. These purposes include expenditures for the planning, environmental
reviews, engineering and design costs, and related right-of-way acquisition.
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a. Eligible local street and road projects costs include any engineering, capital, or
maintenance cost. Decisions on projects are to be made by local jurisdictions
subject to Capital Improvement Program requirements.
i. Annual budget reflecting the local government or agency’s anticipated receipts
and expenditures should be prepared and submitted to RCTC upon approval
by the governing board. The data contained in the capital improvement plans
submitted to RCTC should be included in the recipient’s budgets. These
budgets allow for proper evaluation by RCTC of the recipient’s activities on an
annual basis. (Policy adopted May 8, 1991)
b. Eligible transit programs include special discount fares for seniors and
handicapped people, commuter bus services, funding for computer assisted
rideshare programs, and “seed” programs to encourage the creation of vanpools.
Additionally, funds will be used to provide further reductions for the truly needy and
to expand existing services and implement new services. Bus capital replacement
and additional bus service may also be an eligible program within the Coachella
Valley, subject to a determination of funding by the Coachella Valley Association
of Governments (CVAG).
2. Maintenance of Effort (MOE). Additional funds provided under Measure A are
intended to supplement existing local revenues being used for transportation
purposes. Government agencies shall maintain their existing commitment of local
funds for street highway and public transit purposes pursuant to Measure A.
a. The local cities and the County shall annually submit to RCTC a list of the proposed
uses for these funds and a certification that the MOE requirement is being met. If
in any fiscal year, the maintenance of effort requirement is not met, the agency
shall not be eligible for any Measure A funds in the following fiscal year. Such
funds shall be distributed to the remaining local governments using the formula for
the area.
i. Agencies may use any local discretionary funds expended for local streets and
roads purposes during previous fiscal years which were in excess of their
maintenance of effort requirements to meet their MOE requirements for the
fiscal year. (Measure A Maintenance of Effort Guidelines)
b. RCTC shall assure the cities’ and County compliance with MOE funding
requirements before allocating funds for local streets and roads.
c. RCTC shall not allocate funds to an individual city or the County for local streets
and roads use within the Western County and Coachella Valley areas unless
WRCOG or CVAG indicates participation of agency in the Transportation Uniform
Mitigation Fee program necessary for implementation of the planned regional
arterial system.
3. Allocation of Funds to Geographic Areas. Funds for transportation purposes shall
be allocated to the Western County, Coachella Valley, and Palo Verde Valley areas
proportionate to the Measure A funds generated within these areas.
4. Allocation of Funds within Geographic Areas. RCTC shall return 2009 Measure A
funds to the geographic areas as follows (Applicable to RCTC):
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a. Western County. To be distributed for the following programs: $370 million
(approx. 11% to new corridors; $1,020 million (approx. 30%) to highways; $390
million (approx. 12%) to public transit; $300 million (approx. 9%) to regional
arterials; $970 million (approx. 29%) to local streets and roads; $270 million
(approx. 8%) to bond financing; and $40 million (approx. 1%) to economic
development.
i. Local streets and roads funding are to be distributed by a formula based on
75% on proportionate population and 25% on 2009 Measure A revenues
generated within each jurisdiction, if they participate in the Transportation
Uniform Mitigation Fee program and Multi-Species Habitat Conservation Plan.
If local agencies choose not to participate in the TUMF and MSHCP programs,
the funds they would otherwise receive for local streets and roads will be added
to the Measure A funds for the Regional Arterial System administered by
RCTC.
b. Coachella Valley. To be distributed for the following programs: 50% to highways
and regional arterial projects; 35% to local streets and roads; and 15% to
specialized public transit.
i. Local streets and roads funds will be provided to Coachella Valley cities and
the County if they participate in the Transportation Uniform Mitigation Fee
program. If local agencies choose not to participate in the TUMF program, the
funds they would otherwise receive for local streets and roads will be added to
the Measure A funds for the Regional Arterial System administered by CVAG.
ii. Local streets and roads funds are to be distributed by a formula based on 50%
on proportionate dwelling units and 50% on 2009 Measure A revenues
generated within each jurisdiction, as interpreted in Ordinance and direction
provided by CVAG.
c. Palo Verde Valley. To be distributed 100% to local streets and roads.
i. Local streets and roads funds are to be distributed by a formula based on 75%
on proportionate population and 25% on sales tax revenues generated in each
jurisdiction.
5. Accounting Records. Measure A recipients are required to maintain accurate,
complete, and separate accounting records for all sources of the funds they receive.
Small not-for-profit agencies are encouraged but not required to maintain separate
accounting records as long as Measure A receipts, related revenues, and
expenditures can be readily identified. If RCTC’s independent auditors are unable to
readily identify which funds are being used for expenditures, then the agency will be
required to maintain separate accounting records and cash accounts if they are to
continue receiving Measure A allocations. Any agency which maintains poor
accounting records will receive funding allocations on a reimbursement basis only.
(Policy adopted May 12, 1993)
6. Interfund Borrowing. Interfund borrowing from Measure A funding sources to
another local jurisdiction fund is strictly prohibited. Cities and agencies must maintain
sufficient cash balances so as not to impair their Measure A funds. Evidence of
interfund borrowing or impaired cash balances will result in the city or agency receiving
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funds from RCTC on a reimbursement basis only after any existing city or agency
reserves of prior Commission funds have been fully depleted. (Policy adopted May
12, 1993)
7. Interest Income Allocations. Interest on Measure A funds shall accrue separately
for all of RCTC’s programs as defined in the text of Measure A. This interest allocation
policy is applicable to the entire County, and such allocations shall be made monthly.
Interest earned on unexpended Measure A monies should be recorded in the Measure
A fund established by a local government or other agency receiving local streets and
roads or specialized transit monies. As these funds are restricted, the related interest
earned should be restricted as required by governmental regulations and other
transportation funding including the Transportation Act. (Policy adopted May 8, 1991
and May 12, 1993)
8. Accumulated Deficits. Accumulated funding source deficits are the responsibility of
the local jurisdiction. RCTC will consider allocating additional funds for such deficits
when justifiable on a case-by-case basis. (Policy adopted May 12, 1993)
9. Budget Variances. Significant budget variances should be avoided. All local
jurisdictions are required to compare the budget to actual results and make mid-year
revisions as needed. (Policy adopted May 12, 1993)
10. Unexpended Monies. Whenever the annual fiscal audit or the proposed update of
the Five Year Capital Improvement Program of a local agency shows a Measure A
Local Streets and Road Program carryover balance in excess of three (3) times the
annual allocation to an agency, Commission staff will:
a. Meet with the local agency to have them explain the reason for the carryover and
explore alternatives for moving projects faster, and
b. Present a report of their findings to RCTC’s Budget and Finance Committee to
determine if any further action should be considered and proposed to the full
Commission.
(Policy included in December 13, 1995 revisions to the RCTC Program and Funding
Guide)
J. Transit Compliance Requirements
The auditors should review the TDA regulations for Local Transportation Fund and State
Transit Assistance funding. California Code Section 6664 discusses the fiscal and
compliance audits of all claimants, Section 6666 provides the compliance audit tasks for
non-transit claimants, and Section 6667 provides the compliance audit tasks for transit
claimants. The TDA Statutes and California Code of Regulation Guidebook is available at:
https://dot.ca.gov/-/media/dot-media/programs/rail-mass-
transportation/documents/f0009844-tda-07-2018-a11y.pdf.
California Department of Transportation program guidelines for State of Good Repair
funds received through RCTC are located at:
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https://dot.ca.gov/-/media/dot-media/programs/rail-mass-
transportation/documents/sgr/202008-sgr-final-guidelines-a11y.pdf
Proposition 1B accountability requirements for Public Transportation Modernization,
Improvement and Service Enhancement Account (PTMISEA) funds received through
Caltrans are located at:
https://dot.ca.gov/-/media/dot-media/programs/rail-mass-
transportation/documents/ptmisea/201910-ptmisea-guidelines-a11y.pdf
Proposition 1B guidelines for Transit System Safety, Security, and Disaster Response
Account (TSSSDRA) funds received through CalOES are located at:
https://www.caloes.ca.gov/GrantsManagementSite/Documents/FY 2016-17 HR
Guidance with Allocations.pdf#search=TSSSDRA guidelines
LCTOP program guidelines for funds received through Caltrans are located at:
https://dot.ca.gov/-/media/dot-media/programs/rail-mass-
transportation/documents/lctop/201909-lctop-fy19-20-guidelines-a11y.pdf
K. MSCHP Compliance Requirements
The auditors should review the MSHCP Member Agency requirements in various implementation
documents which are available at:
MSHCP Implementation Agreement Ordinance (for current procedures, see model
ordinance beginning on page 347 of link)
https://www.wrc-rca.org/Permit_Docs/MSHCP/MSHCP-Volume3.pdf
MSHCP Implementation Manual (effective for FY 2021/22 agreed-upon procedures)
https://www.wrc-
rca.org//Permit_Docs/MSHCP/MSHCP%20Mitigation%20Fee%20Implementation%20M
anual%20Final.pdf
End of Statement of Services
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EXHIBIT "B"
COMPENSATION
[TO BE INSERTED BEHIND THIS PAGE]
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(Amounts subject to rounding
differences)
FIRM PROJECT TASKS/ROLE COST
Eide Bailly2 Audit and Attestation Services 424,977$
-
424,977$
TASK NUMBER TASK DESCRIPTION COST
TDA Article 3/Bicycle and Pedestrian2 Audit Services 23,330$
TDA Article 4/Transit Audit Services 131,790
Measure A Local Streets and Roads Agreed-Upon Procedures Attestation Services 152,634
Measure A Specialized Transit2 Agreed-Upon Procedures Attestation Services -
MSHCP Member Agencies Agreed-Upon Procedures Attestation Services 117,222
424,977
-
424,977$
FISCAL YEAR PROJECT COST
FY 2020/212 Audit and Attestation Services 69,107$
FY 2021/222 Audit and Attestation Services 69,107
FY 2022/232 Audit and Attestation Services 69,107
FY 2023/24 (Option Year 1)2 Audit and Attestation Services 70,912
FY 2024/25 (Option Year 2)2 Audit and Attestation Services 72,556
FY 2025/26 (Option Year 3)2 Audit and Attestation Services 74,189
424,977
424,977$ TOTAL COSTS
1 Commission authorization pertains to total contract award amount. Compensation adjustments between consultants may occur;
however, the maximum total compensation authorized may not be exceeded.
2 TDA Article 3/Bicycle and Pedestrian audits and Measure A Specialized Transit agreed-upon procedures will be determined annually
based on TDA claimants and Measure A disbursements; accordingly, amounts are estimated. This estimate assumes four (4) annual
TDA Article 3/Bicycle and Pedestrian audits and zero (0) Measure A Specialized Transit attestation services.
SUBTOTAL
OTHER DIRECT COSTS
TOTAL COSTS
SUBTOTAL
EXHIBIT "B"
COMPENSATION SUMMARY1
Prime Consultant:
OTHER DIRECT COSTS
TOTAL COSTS
EXHIBIT B-1
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17336.00000\8752982.1
Agreement No. 21-19-056-00
RIVERSIDE COUNTY TRANSPORTATION COMMISSION
AGREEMENT FOR AUDIT AND ATTESTATION SERVICES
FOR THE EASTERN RIVERSIDE COUNTY
MEASURE A RECIPIENTS AND
TRANSPORTATION DEVELOPMENT ACT CLAIMANTS
OF THE
RIVERSIDE COUNTY TRANSPORTATION COMMISSION
WITH BROWN ARMSTRONG ACCOUNTANCY CORPORATION
1. PARTIES AND DATE.
This Agreement is made and entered into this day of , 2021, by and
between the RIVERSIDE COUNTY TRANSPORTATION COMMISSION ("the Co-
mmission") and BROWN ARMSTRONG ACCOUNTANCY CORPORATION
("Consultant"), a CORPORATION.
2. RECITALS.
2.1 Consultant desires to perform and assume responsibility for the
provision of certain professional consulting services required by Commission on the terms
and conditions set forth in this Agreement. Consultant represents that it is a professional
consultant, experienced in providing audit services to public clients, is licensed in the
State of California, and is familiar with the plans of Commission.
2.2 Commission desires to engage Consultant to render certain audit
and attestation services for the Commission ("Project") as set forth herein.
3. TERMS.
3.1 General Scope of Services. Consultant promises and agrees to
furnish to Commission all labor materials, tools, equipment, services, and incidental and
customary work necessary to fully and adequately provide professional consulting
services and advice on various issues affecting the decisions of Commission regarding
the Project and on other programs and matters affecting Commission, hereinafter referred
to as "Services". The Services are more particularly described in Exhibit "A" attached
hereto and incorporated herein by reference. All Services shall be subject to, and
performed in accordance with, this Agreement, the exhibits attached hereto and
incorporated herein by reference, and all applicable local, state, and federal laws, rules
and regulations.
1
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3.2 Term. The term of this Agreement shall be from the date first
specified above to June 30, 2024, unless earlier terminated as provided herein. The
Commission, at its sole discretion, may extend this Agreement for three (3) additional
single year terms through June 30, 2027. Consultant shall complete the Services within
the term of this Agreement and shall meet any other established schedules and
deadlines.
3.3 Schedule of Services. Consultant shall perform the Services
expeditiously, within the term of this Agreement, and in accordance with the Audit
Schedule set forth in Exhibit "A" attached hereto and incorporated herein by reference.
Consultant represents that it has the professional and technical personnel required to
perform the Services in conformance with such conditions. In order to facilitate
Consultant's conformance with the Schedule, the Commission shall respond to
Consultant's submittals in a timely manner. Upon request of the Commission, Consultant
shall provide a more detailed schedule of anticipated performance to meet the Audit
Schedule.
3.4 Independent Contractor; Control and Payment of Subordinates. The
Services shall be performed by Consultant under its supervision. Consultant will
determine the means, method and details of performing the Services subject to the
requirements of this Agreement. Commission retains Consultant on an independent
contractor basis and Consultant is not an employee of Commission. Consultant retains
the right to perform similar or different services for others during the term of this
Agreement. Any additional personnel performing the Services under this Agreement on
behalf of Consultant shall not be employees of Commission and shall at all times be under
Consultant's exclusive direction and control. Consultant shall pay all wages, salaries, and
other amounts due such personnel in connection with their performance of Services under
this Agreement and as required by law. Consultant shall be responsible for all reports
and obligations respecting such additional personnel, including, but not limited to: social
security taxes, income tax withholding, unemployment insurance, and workers'
compensation insurance.
3.5 Conformance to Applicable Requirements. All work prepared by
Consultant shall be subject to the approval of Commission.
3.6 Substitution of Key Personnel. Consultant has represented to
Commission that certain key personnel will perform and coordinate the Services under
this Agreement. Should one or more of such personnel become unavailable, Consultant
may substitute other personnel of at least equal competence and experience upon written
approval of Commission. In the event that Commission and Consultant cannot agree as
to the substitution of key personnel, Commission shall be entitled to terminate this
Agreement for cause, pursuant to provisions of Section 3.16 of this Agreement. The key
personnel for performance of this Agreement are as follows: Eric H. Xin, Thomas M.
Young, Melissa L. Cabezzas, Ken Gill, Alex Medina, and Lorena Matias.
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3.7 Commission’s Representative. Commission hereby designates the
Chief Financial Officer, or his or her designee, to act as its representative for the
performance of this Agreement ("Commission’s Representative"). Commission's
representative shall have the power to act on behalf of Commission for all purposes under
this Agreement. Consultant shall not accept direction from any person other than
Commission's Representative or his or her designee.
3.8 Consultant’s Representative. Consultant hereby designates Eric H.
Xin, or his or her designee, to act as its representative for the performance of this
Agreement ("Consultant’s Representative"). Consultant’s Representative shall have full
authority to represent and act on behalf of the Consultant for all purposes under this
Agreement. The Consultant’s Representative shall supervise and direct the Services,
using his or her best skill and attention, and shall be responsible for all means, methods,
techniques, sequences and procedures and for the satisfactory coordination of all
portions of the Services under this Agreement.
3.9 Coordination of Services. Consultant agrees to work closely with
Commission staff in the performance of Services and shall be available to Commission's
staff, consultants and other staff at all reasonable times.
3.10 Standard of Care; Licenses. Consultant shall perform the Services
under this Agreement in a skillful and competent manner, consistent with the standard
generally recognized as being employed by professionals in the same discipline in the
State of California. Consultant represents and maintains that it is skilled in the
professional calling necessary to perform the Services. Consultant warrants that all
employees and subcontractors shall have sufficient skill and experience to perform the
Services assigned to them. Finally, Consultant represents that it, its employees and
subcontractors have all licenses, permits, qualifications and approvals of whatever nature
that are legally required to perform the Services and that such licenses and approvals
shall be maintained throughout the term of this Agreement. Consultant shall perform, at
its own cost and expense and without reimbursement from Commission, any Services
necessary to correct errors or omissions which are caused by the Consultant’s failure to
comply with the standard of care provided for herein, and shall be fully responsible to the
Commission for all damages and other liabilities provided for in the indemnification
provisions of this Agreement arising from the Consultant’s errors and omissions.
3.11 Laws and Regulations. Consultant shall keep itself fully informed of
and in compliance with all local, state and federal laws, rules and regulations in any
manner affecting the performance of the Project or the Services, including all Cal/OSHA
requirements, and shall give all notices required by law. Consultant shall be liable for all
violations of such laws and regulations in connection with Services. If the Consultant
performs any work knowing it to be contrary to such laws, rules and regulations and
without giving written notice to Commission, Consultant shall be solely responsible for all
costs arising therefrom. Consultant shall defend, indemnify and hold Commission, its
officials, directors, officers, employees and agents free and harmless, pursuant to the
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indemnification provisions of this Agreement, from any claim or liability arising out of any
failure or alleged failure to comply with such laws, rules or regulations.
3.12 Insurance.
3.12.1 Time for Compliance. Consultant shall not commence work
under this Agreement until it has provided evidence satisfactory to the Commission that
it has secured all insurance required under this section, in a form and with insurance
companies acceptable to the Commission. In addition, Consultant shall not allow any
subcontractor to commence work on any subcontract until it has secured all insurance
required under this section.
3.12.2 Minimum Requirements. Consultant shall, at its expense,
procure and maintain for the duration of the Agreement insurance against claims for
injuries to persons or damages to property which may arise from or in connection with the
performance of the Agreement by the Consultant, its agents, representatives, employees
or subcontractors. Consultant shall also require all of its subcontractors to procure and
maintain the same insurance for the duration of the Agreement. Such insurance shall
meet at least the following minimum levels of coverage:
(A) Minimum Scope of Insurance. Coverage shall be at
least as broad as the latest version of the following: (1) General Liability: Insurance
Services Office Commercial General Liability coverage (occurrence form CG 0001 or
exact equivalent); (2) Automobile Liability: Insurance Services Office Business Auto
Coverage (form CA 0001, code 1 (any auto) or exact equivalent); and (3) Workers’
Compensation and Employer’s Liability: Workers’ Compensation insurance as required
by the State of California and Employer’s Liability Insurance.
(B) Minimum Limits of Insurance. Consultant shall
maintain limits no less than: (1) General Liability: $2,000,000 per occurrence for bodily
injury, personal injury and property damage. If Commercial General Liability Insurance
or other form with general aggregate limit is used, either the general aggregate limit shall
apply separately to this Agreement/location or the general aggregate limit shall be twice
the required occurrence limit; (2) Automobile Liability: $1,000,000 per accident for bodily
injury and property damage; and (3) if Consultant has an employees, Workers’
Compensation and Employer’s Liability: Workers’ Compensation limits as required by the
Labor Code of the State of California. Employer’s Practices Liability limits of $1,000,000
per accident.
3.12.3 Professional Liability. Consultant shall procure and maintain,
and require its sub-consultants to procure and maintain, for a period of five (5) years
following completion of the Project, errors and omissions liability insurance appropriate to
their profession. Such insurance shall be in an amount not less than $1,000,000 per
claim. This insurance shall be endorsed to include contractual liability applicable to this
Agreement and shall be written on a policy form coverage specifically designed to protect
against acts, errors or omissions of the Consultant. “Covered Professional Services” as
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designated in the policy must specifically include work performed under this Agreement.
The policy must “pay on behalf of” the insured and must include a provision establishing
the insurer's duty to defend.
3.12.4 Insurance Endorsements. The insurance policies shall
contain the following provisions, or Consultant shall provide endorsements on forms
approved by the Commission to add the following provisions to the insurance policies:
(A) General Liability.
(i) Commercial General Liability Insurance must
include coverage for (1) bodily injury and property damage; (2) personal Injury/Advertising
injury; (3) premises/operations liability; (4) products/completed operations liability; (5)
aggregate limits that apply per project; (6) explosion, collapse and underground (UCX)
exclusion deleted; (7) contractual liability with respect to this Agreement; (8) broad form
property damage; and (9) independent consultants coverage.
(ii) The policy shall contain no endorsements or
provisions limiting coverage for (1) contractual liability; (2) cross liability exclusion for
claims or suits by one insured against another; or (3) contain any other exclusion contrary
to this Agreement.
(iii) The policy shall give the Commission, its
directors, officials, officers, employees, and agents insured status using ISO endorsement
forms 20 10 10 01 and 20 37 10 01, or endorsements providing the exact same coverage.
(iv) The additional insured coverage under the
policy shall be “primary and non-contributory” and will not seek contribution from the
Commission’s insurance or self-insurance and shall be at least as broad as CG 20 01 04
13, or endorsements providing the exact same coverage.
(B) Automobile Liability. The automobile liability policy
shall be endorsed to state that: (1) the Commission, its directors, officials, officers,
employees and agents shall be covered as additional insureds with respect to the
ownership, operation, maintenance, use, loading or unloading of any auto owned, leased,
hired or borrowed by the Consultant or for which the Consultant is responsible; and (2)
the insurance coverage shall be primary insurance as respects the Commission, its
directors, officials, officers, employees and agents, or if excess, shall stand in an
unbroken chain of coverage excess of the Consultant’s scheduled underlying coverage.
Any insurance or self-insurance maintained by the Commission, its directors, officials,
officers, employees and agents shall be excess of the Consultant’s insurance and shall
not be called upon to contribute with it in any way.
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(C) Workers’ Compensation and Employers Liability
Coverage.
(i) Consultant certifies that he/she is aware of the
provisions of Section 3700 of the California Labor Code which requires every employer
to be insured against liability for workers’ compensation or to undertake self-insurance in
accordance with the provisions of that code, and he/she will comply with such provisions
before commencing work under this Agreement.
(ii) The insurer shall agree to waive all rights of
subrogation against the Commission, its directors, officials, officers, employees and
agents for losses paid under the terms of the insurance policy which arise from work
performed by the Consultant.
(D) All Coverages.
(i) Defense costs shall be payable in addition to the
limits set forth hereunder.
(ii) Requirements of specific coverage or limits
contained in this section are not intended as a limitation on coverage, limits, or other
requirement, or a waiver of any coverage normally provided by any insurance. It shall be
a requirement under this Agreement that any available insurance proceeds broader than
or in excess of the specified minimum insurance coverage requirements and/or limits set
forth herein shall be available to the Commission, its directors, officials, officers,
employees and agents as additional insureds under said policies. Furthermore, the
requirements for coverage and limits shall be (1) the minimum coverage and limits
specified in this Agreement; or (2) the broader coverage and maximum limits of coverage
of any insurance policy or proceeds available to the named insured; whichever is greater.
(iii) The limits of insurance required in this
Agreement may be satisfied by a combination of primary and umbrella or excess
insurance. Any umbrella or excess insurance shall contain or be endorsed to contain a
provision that such coverage shall also apply on a primary and non-contributory basis for
the benefit of the Commission (if agreed to in a written contract or agreement) before the
Commission’s own insurance or self-insurance shall be called upon to protect it as a
named insured. The umbrella/excess policy shall be provided on a “following form” basis
with coverage at least as broad as provided on the underlying policy(ies).
(iv) Consultant shall provide the Commission at
least thirty (30) days prior written notice of cancellation of any policy required by this
Agreement, except that the Consultant shall provide at least ten (10) days prior written
notice of cancellation of any such policy due to non-payment of premium. If any of the
required coverage is cancelled or expires during the term of this Agreement, the
Consultant shall deliver renewal certificate(s) including the General Liability Additional
Insured Endorsement to the Commission at least ten (10) days prior to the effective date
of cancellation or expiration.
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(v) The retroactive date (if any) of each policy is to
be no later than the effective date of this Agreement. Consultant shall maintain such
coverage continuously for a period of at least three years after the completion of the work
under this Agreement. Consultant shall purchase a one (1) year extended reporting
period A) if the retroactive date is advanced past the effective date of this Agreement; B)
if the policy is cancelled or not renewed; or C) if the policy is replaced by another claims-
made policy with a retroactive date subsequent to the effective date of this Agreement.
(vi) The foregoing requirements as to the types and
limits of insurance coverage to be maintained by Consultant, and any approval of said
insurance by the Commission, is not intended to and shall not in any manner limit or
qualify the liabilities and obligations otherwise assumed by the Consultant pursuant to
this Agreement, including but not limited to, the provisions concerning indemnification.
(vii) If at any time during the life of the Agreement,
any policy of insurance required under this Agreement does not comply with these
specifications or is canceled and not replaced, Commission has the right but not the duty
to obtain the insurance it deems necessary and any premium paid by Commission will be
promptly reimbursed by Consultant or Commission will withhold amounts sufficient to pay
premium from Consultant payments. In the alternative, Commission may cancel this
Agreement. The Commission may require the Consultant to provide complete copies of
all insurance policies in effect for the duration of the Project.
(viii) Neither the Commission nor any of its directors,
officials, officers, employees or agents shall be personally responsible for any liability
arising under or by virtue of this Agreement.
Each insurance policy required by this Agreement shall
be endorsed to state that:
3.12.5 Deductibles and Self-Insurance Retentions. Any deductibles
or self-insured retentions must be declared to and approved by the Commission. If the
Commission does not approve the deductibles or self-insured retentions as presented,
Consultant shall guarantee that, at the option of the Commission, either: (1) the insurer
shall reduce or eliminate such deductibles or self-insured retentions as respects the
Commission, its directors, officials, officers, employees and agents; or, (2) the Consultant
shall procure a bond guaranteeing payment of losses and related investigation costs,
claims and administrative and defense expenses.
3.12.6 Acceptability of Insurers. Insurance is to be placed with
insurers with a current A.M. Best’s rating no less than A:VIII, licensed to do business in
California, and satisfactory to the Commission.
3.12.7 Verification of Coverage. Consultant shall furnish
Commission with original certificates of insurance and endorsements effecting coverage
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required by this Agreement on forms satisfactory to the Commission. The certificates and
endorsements for each insurance policy shall be signed by a person authorized by that
insurer to bind coverage on its behalf. All certificates and endorsements must be received
and approved by the Commission before work commences. The Commission reserves
the right to require complete, certified copies of all required insurance policies, at any
time.
3.12.8 Subconsultant Insurance Requirements. Consultant shall not
allow any subcontractors or subconsultants to commence work on any subcontract until
they have provided evidence satisfactory to the Commission that they have secured all
insurance required under this section. Policies of commercial general liability insurance
provided by such subcontractors or subconsultants shall be endorsed to name the
Commission as an additional insured using ISO form CG 20 38 04 13 or an endorsement
providing the exact same coverage. If requested by Consultant, the Commission may
approve different scopes or minimum limits of insurance for particular subcontractors or
subconsultants.
3.13 Safety. Consultant shall execute and maintain its work so as to avoid
injury or damage to any person or property. In carrying out its Services, the Consultant
shall at all times be in compliance with all applicable local, state and federal laws, rules
and regulations, and shall exercise all necessary precautions for the safety of employees
appropriate to the nature of the work and the conditions under which the work is to be
performed. Safety precautions as applicable shall include, but shall not be limited to: (A)
adequate life protection and life saving equipment and procedures; (B) instructions in
accident prevention for all employees and subcontractors, such as safe walkways,
scaffolds, fall protection ladders, bridges, gang planks, confined space procedures,
trenching and shoring, equipment and other safety devices, equipment and wearing
apparel as are necessary or lawfully required to prevent accidents or injuries; and (C)
adequate facilities for the proper inspection and maintenance of all safety measures.
3.14 Fees and Payment.
3.14.1 Compensation. Consultant shall receive compensation,
including authorized reimbursements, for all Services rendered under this Agreement at
the rates set forth in Exhibit "B" attached hereto. The total compensation shall not exceed
Thirty-Eight Thousand Four Hundred Dollars ($38,400) without written approval of
Commission's Executive Director (“Total Compensation”). Extra Work may be
authorized, as described below, and if authorized, will be compensated at the rates and
manner set forth in this Agreement.
3.14.2 Payment of Compensation. Consultant shall submit to
Commission a monthly statement which indicates work completed and hours of Services
rendered by Consultant. The statement shall describe the amount of Services and
supplies provided since the initial commencement date, or since the start of the
subsequent billing periods, as appropriate, through the date of the statement.
Commission shall, within 45 days of receiving such statement, review the statement and
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pay all approved charges thereon.
3.14.3 Reimbursement for Expenses. Consultant shall not be
reimbursed for any expenses unless authorized in writing by Commission.
3.14.4 Extra Work. At any time during the term of this Agreement,
Commission may request that Consultant perform Extra Work. As used herein, "Extra
Work" means any work which is determined by Commission to be necessary for the
proper completion of the Project, but which the parties did not reasonably anticipate would
be necessary at the execution of this Agreement. Consultant shall not perform, nor be
compensated for, Extra Work without written authorization from Commission's Executive
Director.
3.15 Accounting Records. Consultant shall maintain complete and
accurate records with respect to all costs and expenses incurred and fees charged under
this Agreement. All such records shall be clearly identifiable. Consultant shall allow a
representative of Commission during normal business hours to examine, audit, and make
transcripts or copies of such records and any other documents created pursuant to this
Agreement. Consultant shall allow inspection of all work, data, documents, proceedings,
and activities related to the Agreement for a period of three (3) years from the date of final
payment under this Agreement.
3.16 Termination of Agreement.
3.16.1 Grounds for Termination. Commission may, by written notice
to Consultant, terminate the whole or any part of this Agreement at any time and without
cause by giving written notice to Consultant of such termination, and specifying the
effective date thereof. Upon termination, Consultant shall be compensated only for those
services which have been fully and adequately rendered to Commission through the
effective date of the termination, and Consultant shall be entitled to no further
compensation. Consultant may not terminate this Agreement except for cause.
3.16.2 Effect of Termination. If this Agreement is terminated as
provided herein, Commission may require Consultant to provide all finished or unfinished
Documents and Data, as defined below, and other information of any kind prepared by
Consultant in connection with the performance of Services under this Agreement.
Consultant shall be required to provide such document and other information within fifteen
(15) days of the request.
3.16.3 Additional Services. In the event this Agreement is terminated
in whole or in part as provided herein, Commission may procure, upon such terms and in
such manner as it may determine appropriate, services similar to those terminated.
3.17 Delivery of Notices. All notices permitted or required under this
Agreement shall be given to the respective parties at the following address, or at such
other address as the respective parties may provide in writing for this purpose:
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CONSULTANT: COMMISSION:
Brown Armstrong Accountancy Corp. Riverside County
4200 Truxtun Avenue Transportation Commission
Suite 300 4080 Lemon Street, 3rd Floor
Bakersfield, CA 93309 Riverside, CA 92501
Attn: Eric H. Xin Attn: Executive Director
Such notice shall be deemed made when personally delivered or when
mailed, forty-eight (48) hours after deposit in the U.S. Mail, first class postage prepaid
and addressed to the party at its applicable address. Actual notice shall be deemed
adequate notice on the date actual notice occurred, regardless of the method of service.
3.18 Ownership of Materials/Confidentiality.
3.18.1 Documents & Data. This Agreement creates an exclusive and
perpetual license for Commission to copy, use, modify, reuse, or sub-license any and all
copyrights and designs embodied in plans, specifications, studies, drawings, estimates,
materials, data and other documents or works of authorship fixed in any tangible medium
of expression, including but not limited to, physical drawings or data magnetically or
otherwise recorded on computer diskettes, which are prepared or caused to be prepared
by Consultant under this Agreement (“Documents & Data”).
Consultant shall require all subcontractors to agree in writing that
Commission is granted an exclusive and perpetual license for any Documents & Data the
subcontractor prepares under this Agreement.
Consultant represents and warrants that Consultant has the legal
right to grant the exclusive and perpetual license for all such Documents & Data.
Consultant makes no such representation and warranty in regard to Documents & Data
which were prepared by design professionals other than Consultant or provided to
Consultant by the Commission.
Commission shall not be limited in any way in its use of the
Documents & Data at any time, provided that any such use not within the purposes
intended by this Agreement shall be at Commission’s sole risk.
All programs, working papers, files and other materials of the
Consultant made pursuant to this Agreement shall remain the property of the Consultant.
The Commission will have access to this material at any time. All reports delivered by the
Consultant and its subcontractors pursuant to the Agreement shall become the property
of the Commission without restriction or limitation on their use and shall be made available
upon request, to the Commission at any time. Original copies of the deliverable reports
shall be delivered to the Commission upon completion of the Services or termination of
the Services. The Consultant shall be permitted to retain copies of such items for the
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furtherance of its technical proficiency; however, publication of this material is subject to
the written approval of the Commission.
3.18.2 Intellectual Property. In addition, Commission shall have and
retain all right, title and interest (including copyright, patent, trade secret and other
proprietary rights) in all plans, specifications, studies, drawings, estimates, materials,
data, computer programs or software and source code, enhancements, documents, and
any and all works of authorship fixed in any tangible medium or expression, including but
not limited to, physical drawings or other data magnetically or otherwise recorded on
computer media (“Intellectual Property”) prepared or developed by or on behalf of
Consultant under this Agreement as well as any other such Intellectual Property prepared
or developed by or on behalf of Consultant under this Agreement.
The Commission shall have and retain all right, title and interest in
Intellectual Property developed or modified under this Agreement whether or not paid for
wholly or in part by Commission, whether or not developed in conjunction with Consultant,
and whether or not developed by Consultant. Consultant will execute separate written
assignments of any and all rights to the above referenced Intellectual Property upon
request of Commission.
Consultant shall also be responsible to obtain in writing separate
written assignments from any subcontractors or agents of Consultant of any and all right
to the above referenced Intellectual Property. Should Consultant, either during or
following termination of this Agreement, desire to use any of the above-referenced
Intellectual Property, it shall first obtain the written approval of the Commission.
All materials and documents which were developed or prepared by
the Consultant for general use prior to the execution of this Agreement and which are not
the copyright of any other party or publicly available and any other computer applications,
shall continue to be the property of the Consultant. However, unless otherwise identified
and stated prior to execution of this Agreement, Consultant represents and warrants that
it has the right to grant the exclusive and perpetual license for all such Intellectual Property
as provided herein.
Commission further is granted by Consultant a non-exclusive and
perpetual license to copy, use, modify or sub-license any and all Intellectual Property
otherwise owned by Consultant which is the basis or foundation for any derivative,
collective, insurrectional, or supplemental work created under this Agreement.
3.18.3 Confidentiality. All ideas, memoranda, specifications, plans,
procedures, drawings, descriptions, computer program data, input record data, written
information, and other Documents and Data either created by or provided to Consultant
in connection with the performance of this Agreement shall be held confidential by
Consultant. Such materials shall not, without the prior written consent of Commission, be
used by Consultant for any purposes other than the performance of the Services. Nor
shall such materials be disclosed to any person or entity not connected with the
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performance of the Services or the Project. Nothing furnished to Consultant which is
otherwise known to Consultant or is generally known, or has become known, to the
related industry shall be deemed confidential. Consultant shall not use Commission's
name or insignia, photographs of the Project, or any publicity pertaining to the Services
or the Project in any magazine, trade paper, newspaper, television or radio production or
other similar medium without the prior written consent of Commission.
3.18.4 Infringement Indemnification. Consultant shall defend,
indemnify and hold the Commission, its directors, officials, officers, employees,
volunteers and agents free and harmless, pursuant to the indemnification provisions of
this Agreement, for any alleged infringement of any patent, copyright, trade secret, trade
name, trademark, or any other proprietary right of any person or entity in consequence of
the use on the Project by Commission of the Documents & Data, including any method,
process, product, or concept specified or depicted.
3.19 Cooperation; Further Acts. The Parties shall fully cooperate with one
another, and shall take any additional acts or sign any additional documents as may be
necessary, appropriate or convenient to attain the purposes of this Agreement.
3.20 Attorney's Fees. If either party commences an action against the
other party, either legal, administrative or otherwise, arising out of or in connection with
this Agreement, the prevailing party in such litigation shall be entitled to have and recover
from the losing party reasonable attorney's fees and costs of such actions.
3.21 Indemnification. Consultant shall defend, indemnify and hold the
Commission, its directors, officials, officers, agents, consultants, employees and
volunteers free and harmless from any and all claims, demands, causes of action, costs,
expenses, liabilities, losses, damages or injuries, in law or in equity, to property or
persons, including wrongful death, in any manner arising out of or incident to any alleged
negligent acts, omissions or willful misconduct of the Consultant, its officials, officers,
employees, agents, consultants, and contractors arising out of or in connection with the
performance of the Services, the Project or this Agreement, including without limitation,
the payment of all consequential damages, attorneys fees and other related costs and
expenses. Consultant shall defend, at Consultant’s own cost, expense and risk, any and
all such aforesaid suits, actions or other legal proceedings of every kind that may be
brought or instituted against the Commission, its directors, officials, officers, agents,
consultants, employees and volunteers. Consultant shall pay and satisfy any judgment,
award or decree that may be rendered against the Commission or its directors, officials,
officers, agents, consultants, employees and volunteers, in any such suit, action or other
legal proceeding. Consultant shall reimburse the Commission and its directors, officials,
officers, agents, consultants, employees and volunteers, for any and all legal expenses
and costs, including reasonable attorney’s fees, incurred by each of them in connection
therewith or in enforcing the indemnity herein provided. Consultant’s obligation to
indemnity shall not be restricted to insurance proceeds, if any, received by the
Commission or its directors, officials, officers, agents, consultants, employees and
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volunteers. This Section 3.21 shall survive any expiration or termination of this
Agreement.
3.22 Entire Agreement. This Agreement contains the entire Agreement
of the parties with respect to the subject matter hereof, and supersedes all prior
negotiations, understandings or agreements. This Agreement may only be
supplemented, amended, or modified by a writing signed by both parties.
3.23 Governing Law. This Agreement shall be governed by the laws of
the State of California. Venue shall be in Riverside County.
3.24 Time of Essence. Time is of the essence for each and every
provision of this Agreement.
3.25 Commission's Right to Employ Other Consultants. The Commission
reserves the right to employ other consultants in connection with this Project.
3.26 Successors and Assigns. This Agreement shall be binding on the
successors and assigns of the parties, and shall not be assigned by Consultant without
the prior written consent of Commission.
3.27 Prohibited Interests and Conflicts.
3.27.1 Solicitation. Consultant maintains and warrants that it has not
employed nor retained any company or person, other than a bona fide employee working
solely for Consultant, to solicit or secure this Agreement. Further, Consultant warrants
that it has not paid nor has it agreed to pay any company or person, other than a bona
fide employee working solely for Consultant, any fee, commission, percentage, brokerage
fee, gift or other consideration contingent upon or resulting from the award or making of
this Agreement. For breach or violation of this warranty, Commission shall have the right
to rescind this Agreement without liability.
3.27.2 Conflict of Interest. For the term of this Agreement, no
member, officer or employee of Commission, during the term of his or her service with
Commission, shall have any direct interest in this Agreement, or obtain any present or
anticipated material benefit arising therefrom.
3.27.3 Conflict of Employment. Employment by the Consultant of
personnel currently on the payroll of the Commission shall not be permitted in the
performance of this Agreement, even though such employment may occur outside of the
employee’s regular working hours or on weekends, holidays or vacation time. Further,
the employment by the Consultant of personnel who have been on the Commission
payroll within one year prior to the date of execution of this Agreement, where this
employment is caused by and or dependent upon the Consultant securing this or related
Agreements with the Commission, is prohibited.
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3.27.4 Employment Adverse to the Commission. Consultant shall
notify the Commission, and shall obtain the Commission’s written consent, prior to
accepting work to assist with or participate in a third-party lawsuit or other legal or
administrative proceeding against the Commission during the term of this Agreement.
3.28 Equal Opportunity Employment. Consultant represents that it is an
equal opportunity employer and it shall not discriminate against any employee or
applicant for employment because of race, religion, color, national origin, ancestry, sex
or age. Such non-discrimination shall include, but not be limited to, all activities related
to initial employment, upgrading, demotion, transfer, recruitment or recruitment
advertising, layoff or termination. Consultant shall also comply with all relevant provisions
of Commission's Disadvantaged Business Enterprise program, Affirmative Action Plan or
other related Commission programs or guidelines currently in effect or hereinafter
enacted.
3.29 Subcontracting. Consultant shall not subcontract any portion of the
work or Services required by this Agreement, except as expressly stated herein, without
prior written approval of the Commission. Subcontracts, if any, shall contain a provision
making them subject to all provisions stipulated in this Agreement.
3.30 Reserved.
3.31 Employment of Apprentices. This Agreement shall not prevent the
employment of properly indentured apprentices in accordance with the California Labor
Code, and no employer or labor union shall refuse to accept otherwise qualified
employees as indentured apprentices on the work performed hereunder solely on the
ground of race, creed, national origin, ancestry, color or sex. Every qualified apprentice
shall be paid the standard wage paid to apprentices under the regulations of the craft or
trade in which he or she is employed and shall be employed only in the craft or trade to
which he or she is registered.
3.32 No Waiver. Failure of Commission to insist on any one occasion
upon strict compliance with any of the terms, covenants or conditions hereof shall not be
deemed a waiver of such term, covenant or condition, nor shall any waiver or
relinquishment of any rights or powers hereunder at any one time or more times be
deemed a waiver or relinquishment of such other right or power at any other time or times.
3.33 Eight-Hour Law. Pursuant to the provisions of the California Labor
Code, eight hours of labor shall constitute a legal day's work, and the time of service of
any worker employed on the work shall be limited and restricted to eight hours during any
one calendar day, and forty hours in any one calendar week, except when payment for
overtime is made at not less than one and one-half the basic rate for all hours worked in
excess of eight hours per day ("Eight-Hour Law"), unless Consultant or the Services are
not subject to the Eight-Hour Law. Consultant shall forfeit to Commission as a penalty,
$50.00 for each worker employed in the execution of this Agreement by him, or by any
sub-consultant under him, for each calendar day during which such workman is required
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or permitted to work more than eight hours in any calendar day and forty hours in any one
calendar week without such compensation for overtime violation of the provisions of the
California Labor Code, unless Consultant or the Services are not subject to the Eight-
Hour Law.
3.34 Subpoenas or Court Orders. Should Consultant receive a subpoena
or court order related to this Agreement, the Services or the Project, Consultant shall
immediately provide written notice of the subpoena or court order to the Commission.
Consultant shall not respond to any such subpoena or court order until notice to the
Commission is provided as required herein, and shall cooperate with the Commission in
responding to the subpoena or court order.
3.35 Survival. All rights and obligations hereunder that by their nature are
to continue after any expiration or termination of this Agreement, including, but not limited
to, the indemnification and confidentiality obligations, and the obligations related to receipt
of subpoenas or court orders, shall survive any such expiration or termination.
3.36 No Third Party Beneficiaries. There are no intended third party
beneficiaries of any right or obligation assumed by the Parties.
3.37 Labor Certification. By its signature hereunder, Consultant certifies
that it is aware of the provisions of Section 3700 of the California Labor Code which
require every employer to be insured against liability for Workers’ Compensation or to
undertake self-insurance in accordance with the provisions of that Code, and agrees to
comply with such provisions before commencing the performance of the Services.
3.38 Counterparts. This Agreement may be signed in counterparts, each
of which shall constitute an original.
3.39 Incorporation of Recitals. The recitals set forth above are true and
correct and are incorporated into this Agreement as though fully set forth herein.
3.40 Invalidity; Severability. If any portion of this Agreement is declared
invalid, illegal, or otherwise unenforceable by a court of competent jurisdiction, the
remaining provisions shall continue in full force and effect.
3.41 Conflicting Provisions. In the event that provisions of any attached
exhibits conflict in any way with the provisions set forth in this Agreement, the language,
terms and conditions contained in this Agreement shall control the actions and obligations
of the Parties and the interpretation of the Parties’ understanding concerning the
performance of the Services.
3.42 Headings. Article and Section Headings, paragraph captions or
marginal headings contained in this Agreement are for convenience only and shall have
no effect in the construction or interpretation of any provision herein.
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3.43 Assignment or Transfer. Consultant shall not assign, hypothecate,
or transfer, either directly or by operation of law, this Agreement or any interest herein,
without the prior written consent of the Commission. Any attempt to do so shall be null
and void, and any assignees, hypothecates or transferees shall acquire no right or interest
by reason of such attempted assignment, hypothecation or transfer.
3.44 Authority to Enter Agreement. Consultant has all requisite power and
authority to conduct its business and to execute, deliver, and perform the Agreement.
Each Party warrants that the individuals who have signed this Agreement have the legal
power, right, and authority to make this Agreement and bind each respective Party.
[SIGNATURES ON FOLLOWING PAGE]
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SIGNATURE PAGE
TO
RIVERSIDE COUNTY TRANSPORTATION COMMISSION
AGREEMENT FOR AUDIT AND ATTESTATION SERVICES
FOR THE EASTERN RIVERSIDE COUNTY
MEASURE A RECIPIENTS AND
TRANSPORTATION DEVELOPMENT ACT CLAIMANTS
OF THE
RIVERSIDE COUNTY TRANSPORTATION COMMISSION
WITH BROWN ARMSTRONG ACCOUNTANCY CORPORATION
IN WITNESS WHEREOF, this Agreement was executed on the date first
written above.
RIVERSIDE COUNTY BROWN ARMSTRONG
TRANSPORTATION COMMISSION ACCOUNTANCY CORPORATION
By: _________________________ By: ____________________________
Anne Mayer Signature
Executive Director
__________________________
Name
__________________________
Title
Approved as to Form: Attest:
By:____________________________ By: ________________________
Best Best & Krieger LLP Its: Secretary
General Counsel
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EXHIBIT "A"
SCOPE OF SERVICES
[TO BE INSERTED BEHIND THIS PAGE]
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EXHIBIT A - 1
Statement of Services
A. General
The Riverside County Transportation Commission (RCTC), as the transportation planning agency
for Riverside County, is issuing this Request for Proposal in order to secure services from a
Consultant of certified public accountants to perform for the fiscal years ending June 30, 2021,
2022, and 2023, with the option of performing such services for three (3) additional one-year
terms:
Financial and compliance audits of RCTC’s Transportation Development Act (TDA)
claimants for transit (including funding from Local Transportation Fund (LTF) Article 4,
State Transit Assistance (STA), State of Good Repair (SGR), Low Carbon Transit
Operations Program (LCTOP), and Proposition 1B);
Financial and compliance audits of RCTC’s TDA claimants for bicycle and pedestrian
projects (consisting of funding from LTF Article 3); and
Agreed-upon procedures similar to those proposed in Appendix A, Section G, for RCTC’s
Measure A recipients of local streets and roads (LSR) funding.
Measure A Agreed Upon Procedures
The Measure A LSR Agreed-Upon Procedures apply to all eligible cities in Riverside County.
Measure A LSR funding is allocated and disbursed monthly to the cities, as specified in Measure
A. RCTC does not currently anticipate any incorporations or dis-incorporations of cities that would
result in a change in Measure A LSR recipients. Currently, all cities meet the eligibility
requirements that include:
Participation in the Coachella Valley Transportation Uniform Mitigation Fee (TUMF)
Program, as applicable;
Annual submittal of a 5-Year Capital Improvement Plan (CIP) list of projects;
Annual Maintenance of Effort certification; and
Annual Project Status Report for the prior fiscal year CIP.
Transportation Development Act Audits
The TDA Transit audits will be performed for the Palo Verde Valley Transit Agency. TDA Transit
operating and capital allocations are approved annually by RCTC in June based on the submittal
of each transit operator’s Short-Range Transit Plan. The transit operators also may unexpended
Proposition 1B funding for capital/rehabilitation and/or security projects received through Caltrans
and the California Office of Emergency Services (CalOES), respectively.
The TDA Bicycle and Pedestrian audits apply to local jurisdictions awarded funding by RCTC
for bicycle and pedestrian projects through a biennial competitive call for projects. Local
jurisdictions generally have two years to complete projects, including those projects approved in
the FY 2019/20 Call for Projects at RCTC’s June 12, 2019 meeting. However, as per revised
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guidelines approved by RCTC at its January 13, 2021 meeting effective with the FY 2021/22 Call
for Projects to be awarded at the June 9, 2021 RCTC meeting, local jurisdictions will now have
three years to complete projects. Claimants may request disbursement of their allocations by
RCTC on a reimbursement basis in accordance with RCTC’s policies. Accordingly, the TDA
Bicycle and Pedestrian audits are dependent on claims for expenditures of such funds.
Anticipated Changes in Audit and Attestation Services
RCTC does not anticipate any change in the local jurisdictions subject to TDA Transit audit and
Measure A LSR attestation services. The local jurisdictions requiring TDA Bicycle and Pedestrian
audits will be determined each year based on actual disbursements.
The Chief Financial Officer is designated as the coordinator of the work and may appoint a
Finance Department staff to coordinate day-to-day oversight. The Chief Financial Officer will
serve as the liaison to the audit oversight committee designated by RCTC.
The audits are to be performed by the Consultant(s) in accordance with generally accepted
auditing standards, including use of the most current version of each of the following standards
and guidelines:
American Institute of Certified Public Accountants audit and attestation standards;
General Accounting Office’s (GAO) Government Auditing Standards;
Measure A conformance requirements (Section G); and
Transit requirements (Section H.
B. Scope of Work to be Performed
The selected Consultant(s) will be required to perform the following tasks:
Audit of the transit and transportation financial statements of the jurisdictions receiving
TDA funds in accordance with auditing standards generally accepted in the United States
of America; the standards applicable to financial audits contained in Government Auditing
Standards, issued by the Comptroller General of the United States; the TDA as
summarized in the TDA Guidebook; and SGR, LCTOP, and Proposition 1B audit
guidelines specified by Caltrans and CalOES.
Performance of agreed-upon procedures similar to those listed in Section F solely to assist
RCTC in evaluating the applicable jurisdictions’ Measure A transportation funds and
degree of their compliance with RCTC’s requirements of the Measure A LSR program.
RCTC reserves the right to modify the agreed-upon procedures as deemed necessary to
fulfill its oversight responsibilities for the Measure A LSR program.
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C. Deliverables
Following completion of the audits and agreed-upon procedures and a review of the draft reports
by RCTC, the Consultant(s) shall issue:
A report on the fair presentation of the financial statements for the TDA claimants in
conformity with generally accepted accounting principles and on compliance and internal
control.
A report on the agreed-upon procedures related to the Measure A recipients of LSR
funding.
Drafts of the reports will be provided to RCTC staff and the applicable TDA claimant or Measure
A recipient. The Chief Financial Officer or designee shall review and approve each report prior
to issuance.
For each report issued to RCTC, the Consultant shall issue one PDF copy to RCTC and one PDF
to the applicable TDA claimant or Measure A recipient, as applicable.
Financial and Compliance Reports
The Consultant will submit a financial and compliance report for each TDA audit. The Consultant
will be responsible for the preparation, editing, and printing of all financial and compliance reports,
including the financial statements and notes to the financial statements. Although the Consultant
will prepare the financial statements, management of the TDA Claimant is responsible for the
financial statements.
Agreed-Upon Procedures
The Consultant will submit a report for each Measure A recipient, as applicable, listing the
procedures performed, results of procedures performed, and findings, if any. The Consultant will
be responsible for preparation, editing, and printing of all agreed-upon procedure reports.
D. Required Communications
Significant Deficiencies – In the required reports on compliance and internal controls, the
Consultant shall communicate any significant deficiencies found during the audit of the TDA
claimants. A significant deficiency shall be defined as a control deficiency, or combination of
control deficiencies, that adversely affects the entity’s ability to initiate, authorize, record, process,
or report financial data reliably in accordance with generally accepted accounting principles such
that there is more than a remote likelihood that a misstatement of the entity’s financial statements
that is more than inconsequential will not be prevented or detected by the entity’s internal control.
Significant deficiencies that are also material weaknesses shall be identified as such in the report.
Other control deficiencies discovered by the Consultant may be reported in a separate letter to
management, which shall be referred to in the reports on compliance and internal controls.
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The report on compliance and internal controls shall include all material instances of
noncompliance. All nonmaterial instances of noncompliance may be reported in a separate
management letter, which shall be referred to in the report on compliance and internal controls.
Irregularities and illegal acts – The Consultant shall be required to make an immediate, written
report of all irregularities and illegal acts or indication of illegal acts of which they become aware
to the jurisdiction/agency and RCTC’s audit oversight committee, Executive Director, and Chief
Financial Officer.
Planning meetings – The Consultant shall meet with RCTC staff at least once a year prior to the
commencement of the audits and agreed-upon procedures.
E. Audit Schedule
The work to be performed at the jurisdictions and agencies shall be arranged by the Consultant
with the individual jurisdiction or agency after the conclusion of a planning meeting with RCTC
and RCTC’s issuance of audit notification letters to each jurisdiction and agency.
The work should be scheduled for no later than November 15 of each year. Barring unforeseen
circumstances, the Consultant must conduct the work activities and provide all required reports
and information to RCTC no later than December 31 of each year. The TDA audits are required
to be submitted to the State Controller by December 31 of each year; however, an extension may
be granted by RCTC for no more than 90 days. RCTC’s policy for Measure A reports follows the
TDA requirement; however, a formal extension is generally not issued.
The Consultant shall keep RCTC apprised at least monthly on the status of the audits and any
issues which have been encountered. RCTC will provide assistance, to the extent necessary
and/or possible, to resolve such issues. If circumstances outside the control of the Consultant or
RCTC arise and the deadline cannot be met, both parties agree to communicate the
circumstances and develop an action plan.
F. Measure A Proposed Local Streets and Roads Agreed-Upon Procedures (Proposed)
1. Review the 2009 Measure A (Ordinance 02-001) compliance requirements. Western
County jurisdictions are required to participate in the Transportation Uniform Mitigation
Fee (TUMF) program and in the Multi-Species Habitat Conservation Plan (MSHCP),
which are administered by the Western Riverside Council of Governments (WRCOG)
and the Western Riverside County Regional Conservation Authority (RCA),
respectively. Coachella Valley jurisdictions are required to participate in the TUMF
program administered by the Coachella Valley Association of Governments (CVAG).
Indicate participation in TUMF and/or MSHCP programs.
2. Obtain from RCTC the approved Five-Year Capital Improvement Plan (CIP) for the
fiscal year.
3. Obtain from the jurisdiction a detail general ledger and balance sheet for the fiscal
year.
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a. Identify the amount of Measure A cash and investments recorded at the end of the
fiscal year. Compare amount to Measure A fund balance and provide an
explanation for any differences greater than 25% of fund balance.
b. Identify any amounts due from other funds.
c. Identify the components of ending fund balance for the Measure A activity (e.g.,
nonspendable, restricted, assigned, committed, unassigned) [and for County of
Riverside only by geographic area].
i. Identify the existence of any restatement of Measure A fund balance; inquire
of management as to the reason for any restatement and provide a summary
of the restatement items.
ii. Compare ending fund balance to total revenues for the current year and prior
two years. If ending fund balance is greater than sum of total revenues for the
three-year period, inquire of management as to the reason(s) for the
accumulation of fund balance (e.g., status of specific projects included in the
5-Year CIP).
4. Obtain an operating statement for the Measure A activity for the fiscal year, including
budget amounts; include the operating statement as an exhibit to the report.
a. Review the revenues in the operating statement.
i. Inquire of management as to what fund is used to record Measure A revenues
received from RCTC and identify what the total revenues were for the fiscal
year.
ii. Obtain from RCTC a listing of Measure A payments to the jurisdiction.
1. Compare the Measure A sales tax revenues recorded by the jurisdiction to
the listing of payments made by RCTC. [Use gross amounts paid by RCTC]
iii. Obtain from the jurisdiction an interest allocation schedule for the fiscal year.
1. Identify the allocation amount of interest income to Measure A activity and
what the amount of interest income was for the fiscal year. If no interest
was allocated, inquire of management as to reason for not allocating
interest income.
b. Review the expenditures in the operating statement.
i. Inquire of management as to what fund is used to record Measure A
expenditures and what the total expenditures were for the fiscal year.
ii. Select expenditures for testing that comprise at least 20% of the total
expenditures.
1. For the expenditures selected for testing, compare the dollar amount listed
on the general ledger to the supporting documentation.
2. For the expenditures selected for testing, review the 5-Year CIP and note
if the project is included in the 5-Year CIP and is an allowable cost.
iii. Inquire of management as to the nature of any transfers in or out recorded in
the Measure A fund. For any transfers out, determine if nature of transfer out
was included in the 5-Year CIP.
iv. Inquire of management as to the amount of general or non-project-related
indirect costs, if any, included in expenditures. If indirect costs exceed 8% of
Measure A revenue, inquire of management as to the basis for indirect costs
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charged to Measure A. If indirect costs are identified, determine if such costs
are included in the 5-Year CIP.
v. Inquire of management as to the amount of debt service expenditures recorded
in the Measure A fund and determine is such costs are included in the 5-Year
CIP.
5. Obtain from RCTC a listing of jurisdictions who participate in the Western County or
Coachella Valley TUMF programs.
a. If the jurisdiction is a participant in the TUMF program, select at least one
disbursement for validation as to the amount remitted to WRCOG or CVAG, as
applicable.
b. Indicate the total amount of TUMF fees collected and remitted during the fiscal
year.
6. Obtain from RCTC a listing of jurisdictions who participate in the Western County
MSHCP program.
a. If the jurisdiction is a participant in the MSHCP program, select at least one
disbursement for validation as to the amount remitted to RCA, as applicable.
b. Inquire of management as to the existence of any fees collected in prior years and
not remitted to RCA as of the end of the fiscal year.
c. Indicate the total amount of MSHCP fees collected and remitted during the fiscal
year.
7. Obtain from RCTC the MOE base year requirement, including supporting detail of the
calculations for its city/County, and the carryover amount allowed as of the beginning
of the fiscal year.
a. Obtain from the city/County a calculation of its current year MOE amount in the
format similar to its base year calculation. Attach a copy of the calculation
worksheet provided by the city/County as an exhibit to the report.
b. Compare the current year MOE amounts from the General Fund to the general
ledger.
c. Review the General Fund general ledger to determine if there were any transfers
in to fund any MOE amounts.
d. Compare the amount of current year MOE expenditures to the MOE base
requirement and add any excess to, or subtract any deficiency from, the carryover
amount.
e. If the amount of discretionary funds spent is less than the MOE base requirement
(MOE deficiency), determine the amount of any prior year MOE carryover using
the information obtained from RCTC and reduce the MOE deficiency by any
available MOE carryover to determine an adjusted current year expenditure
amount.
G. Measure A Recipient Conformance Requirements
1. Allowable Costs. Measure A funds may only be used for transportation purposes
including the administration of Division 25 including legal actions related thereto; the
construction, capital acquisition, maintenance, and operation of streets, roads,
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highways including state highways and public transit systems; and for related
purposes. These purposes include expenditures for the planning, environmental
reviews, engineering and design costs, and related right-of-way acquisition.
a. Eligible local street and road projects costs include any engineering, capital, or
maintenance cost. Decisions on projects are to be made by local jurisdictions
subject to Capital Improvement Program requirements.
i. Annual budget reflecting the local government or agency’s anticipated receipts
and expenditures should be prepared and submitted to RCTC upon approval
by the governing board. The data contained in the capital improvement plans
submitted to RCTC should be included in the recipient’s budgets. These
budgets allow for proper evaluation by RCTC of the recipient’s activities on an
annual basis. (Policy adopted May 8, 1991)
b. Eligible transit programs include special discount fares for seniors and
handicapped people, commuter bus services, funding for computer assisted
rideshare programs, and “seed” programs to encourage the creation of vanpools.
Additionally, funds will be used to provide further reductions for the truly needy and
to expand existing services and implement new services. Bus capital replacement
and additional bus service may also be an eligible program within the Coachella
Valley, subject to a determination of funding by the Coachella Valley Association
of Governments (CVAG).
2. Maintenance of Effort (MOE). Additional funds provided under Measure A are
intended to supplement existing local revenues being used for transportation
purposes. Government agencies shall maintain their existing commitment of local
funds for street highway and public transit purposes pursuant to Measure A.
a. The local cities and the County shall annually submit to RCTC a list of the proposed
uses for these funds and a certification that the MOE requirement is being met. If
in any fiscal year, the maintenance of effort requirement is not met, the agency
shall not be eligible for any Measure A funds in the following fiscal year. Such
funds shall be distributed to the remaining local governments using the formula for
the area.
i. Agencies may use any local discretionary funds expended for local streets and
roads purposes during previous fiscal years which were in excess of their
maintenance of effort requirements to meet their MOE requirements for the
fiscal year. (Measure A Maintenance of Effort Guidelines)
b. RCTC shall assure the cities’ and County compliance with MOE funding
requirements before allocating funds for local streets and roads.
c. RCTC shall not allocate funds to an individual city or the County for local streets
and roads use within the Western County and Coachella Valley areas unless
WRCOG or CVAG indicates participation of agency in the Transportation Uniform
Mitigation Fee program necessary for implementation of the planned regional
arterial system.
3. Allocation of Funds to Geographic Areas. Funds for transportation purposes shall
be allocated to the Western County, Coachella Valley, and Palo Verde Valley areas
proportionate to the Measure A funds generated within these areas.
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4. Allocation of Funds within Geographic Areas. RCTC shall return 2009 Measure A
funds to the geographic areas as follows (Applicable to RCTC):
a. Western County. To be distributed for the following programs: $370 million
(approx. 11% to new corridors; $1,020 million (approx. 30%) to highways; $390
million (approx. 12%) to public transit; $300 million (approx. 9%) to regional
arterials; $970 million (approx. 29%) to local streets and roads; $270 million
(approx. 8%) to bond financing; and $40 million (approx. 1%) to economic
development.
i. Local streets and roads funding are to be distributed by a formula based on
75% on proportionate population and 25% on 2009 Measure A revenues
generated within each jurisdiction, if they participate in the Transportation
Uniform Mitigation Fee program and Multi-Species Habitat Conservation Plan.
If local agencies choose not to participate in the TUMF and MSHCP programs,
the funds they would otherwise receive for local streets and roads will be added
to the Measure A funds for the Regional Arterial System administered by
RCTC.
b. Coachella Valley. To be distributed for the following programs: 50% to highways
and regional arterial projects; 35% to local streets and roads; and 15% to
specialized public transit.
i. Local streets and roads funds will be provided to Coachella Valley cities and
the County if they participate in the Transportation Uniform Mitigation Fee
program. If local agencies choose not to participate in the TUMF program, the
funds they would otherwise receive for local streets and roads will be added to
the Measure A funds for the Regional Arterial System administered by CVAG.
ii. Local streets and roads funds are to be distributed by a formula based on 50%
on proportionate dwelling units and 50% on 2009 Measure A revenues
generated within each jurisdiction, as interpreted in Ordinance and direction
provided by CVAG.
c. Palo Verde Valley. To be distributed 100% to local streets and roads.
i. Local streets and roads funds are to be distributed by a formula based on 75%
on proportionate population and 25% on sales tax revenues generated in each
jurisdiction.
5. Accounting Records. Measure A recipients are required to maintain accurate,
complete, and separate accounting records for all sources of the funds they receive.
Small not-for-profit agencies are encouraged but not required to maintain separate
accounting records as long as Measure A receipts, related revenues, and
expenditures can be readily identified. If RCTC’s independent auditors are unable to
readily identify which funds are being used for expenditures, then the agency will be
required to maintain separate accounting records and cash accounts if they are to
continue receiving Measure A allocations. Any agency which maintains poor
accounting records will receive funding allocations on a reimbursement basis only.
(Policy adopted May 12, 1993)
6. Interfund Borrowing. Interfund borrowing from Measure A funding sources to
another local jurisdiction fund is strictly prohibited. Cities and agencies must maintain
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sufficient cash balances so as not to impair their Measure A funds. Evidence of
interfund borrowing or impaired cash balances will result in the city or agency receiving
funds from RCTC on a reimbursement basis only after any existing city or agency
reserves of prior Commission funds have been fully depleted. (Policy adopted May
12, 1993)
7. Interest Income Allocations. Interest on Measure A funds shall accrue separately
for all of RCTC’s programs as defined in the text of Measure A. This interest allocation
policy is applicable to the entire County, and such allocations shall be made monthly.
Interest earned on unexpended Measure A monies should be recorded in the Measure
A fund established by a local government or other agency receiving local streets and
roads or specialized transit monies. As these funds are restricted, the related interest
earned should be restricted as required by governmental regulations and other
transportation funding including the Transportation Act. (Policy adopted May 8, 1991
and May 12, 1993)
8. Accumulated Deficits. Accumulated funding source deficits are the responsibility of
the local jurisdiction. RCTC will consider allocating additional funds for such deficits
when justifiable on a case-by-case basis. (Policy adopted May 12, 1993)
9. Budget Variances. Significant budget variances should be avoided. All local
jurisdictions are required to compare the budget to actual results and make mid-year
revisions as needed. (Policy adopted May 12, 1993)
10. Unexpended Monies. Whenever the annual fiscal audit or the proposed update of
the Five Year Capital Improvement Program of a local agency shows a Measure A
Local Streets and Road Program carryover balance in excess of three (3) times the
annual allocation to an agency, Commission staff will:
a. Meet with the local agency to have them explain the reason for the carryover and
explore alternatives for moving projects faster, and
b. Present a report of their findings to RCTC’s Budget and Finance Committee to
determine if any further action should be considered and proposed to the full
Commission.
(Policy included in December 13, 1995 revisions to the RCTC Program and Funding
Guide)
H. Transit Compliance Requirements
The auditors should review the TDA regulations for Local Transportation Fund and State
Transit Assistance funding. California Code Section 6664 discusses the fiscal and
compliance audits of all claimants, Section 6666 provides the compliance audit tasks for
non-transit claimants, and Section 6667 provides the compliance audit tasks for transit
claimants. The TDA Statutes and California Code of Regulation Guidebook is available at:
https://dot.ca.gov/-/media/dot-media/programs/rail-mass-
transportation/documents/f0009844-tda-07-2018-a11y.pdf.
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California Department of Transportation program guidelines for State of Good Repair
funds received through RCTC are located at:
https://dot.ca.gov/-/media/dot-media/programs/rail-mass-
transportation/documents/sgr/202008-sgr-final-guidelines-a11y.pdf
Proposition 1B accountability requirements for Public Transportation Modernization,
Improvement and Service Enhancement Account (PTMISEA) funds received through
Caltrans are located at:
https://dot.ca.gov/-/media/dot-media/programs/rail-mass-
transportation/documents/ptmisea/201910-ptmisea-guidelines-a11y.pdf
Proposition 1B guidelines for Transit System Safety, Security, and Disaster Response
Account (TSSSDRA) funds received through CalOES are located at:
https://www.caloes.ca.gov/GrantsManagementSite/Documents/FY 2016-17 HR
Guidance with Allocations.pdf#search=TSSSDRA guidelines
LCTOP program guidelines for funds received through Caltrans are located at:
https://dot.ca.gov/-/media/dot-media/programs/rail-mass-
transportation/documents/lctop/201909-lctop-fy19-20-guidelines-a11y.pdf
End of Statement of Services
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COMPENSATION
[TO BE INSERTED BEHIND THIS PAGE]
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(Amounts subject to rounding
differences)
FIRM PROJECT TASKS/ROLE COST
Brown Armstrong Accountancy Corporation2 Audit and Attestation Services 38,400$
-
38,400$
TASK NUMBER TASK DESCRIPTION COST
TDA Article 3/Bicycle and Pedestrian2 Audit Services -$
TDA Article 4/Transit Audit Services -
Measure A Local Streets and Roads Agreed-Upon Procedures Attestation Services 38,400
38,400
-
38,400$
FISCAL YEAR PROJECT COST
FY 2020/212 Audit and Attestation Services 6,400$
FY 2021/222 Audit and Attestation Services 6,400
FY 2022/232 Audit and Attestation Services 6,400
FY 2023/24 (Option Year 1)2 Audit and Attestation Services 6,400
FY 2024/25 (Option Year 2)2 Audit and Attestation Services 6,400
FY 2025/26 (Option Year 3)2 Audit and Attestation Services 6,400
38,400
38,400$ TOTAL COSTS
1 Commission authorization pertains to total contract award amount. Compensation adjustments between consultants may occur;
however, the maximum total compensation authorized may not be exceeded.
2 TDA Article 3/Bicycle and Pedestrian audits will be determined annually based on TDA claimants; accordingly, amounts are estimated.
This estimate assumes zero (0) annual TDA Article 3/Bicycle and Pedestrian audits.
SUBTOTAL
OTHER DIRECT COSTS
TOTAL COSTS
SUBTOTAL
EXHIBIT "B"
COMPENSATION SUMMARY1
Prime Consultant:
OTHER DIRECT COSTS
TOTAL COSTS
EXHIBIT B-1
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Agreement No. 21-19-057-00
RIVERSIDE COUNTY TRANSPORTATION COMMISSION
AGREEMENT FOR AUDIT AND ATTESTATION SERVICES
FOR THE EASTERN RIVERSIDE COUNTY
MEASURE A RECIPIENTS AND
TRANSPORTATION DEVELOPMENT ACT CLAIMANTS
OF THE
RIVERSIDE COUNTY TRANSPORTATION COMMISSION
WITH CONRAD LLP
1. PARTIES AND DATE.
This Agreement is made and entered into this day of , 2021, by and
between the RIVERSIDE COUNTY TRANSPORTATION COMMISSION ("the Co-
mmission") and CONRAD LLP ("Consultant"), a Limited Liability Partnership.
2. RECITALS.
2.1 Consultant desires to perform and assume responsibility for the
provision of certain professional consulting services required by Commission on the terms
and conditions set forth in this Agreement. Consultant represents that it is a professional
consultant, experienced in providing audit services to public clients, is licensed in the
State of California, and is familiar with the plans of Commission.
2.2 Commission desires to engage Consultant to render certain audit
and attestation services for the Commission ("Project") as set forth herein.
3. TERMS.
3.1 General Scope of Services. Consultant promises and agrees to
furnish to Commission all labor materials, tools, equipment, services, and incidental and
customary work necessary to fully and adequately provide professional consulting
services and advice on various issues affecting the decisions of Commission regarding
the Project and on other programs and matters affecting Commission, hereinafter referred
to as "Services". The Services are more particularly described in Exhibit "A" attached
hereto and incorporated herein by reference. All Services shall be subject to, and
performed in accordance with, this Agreement, the exhibits attached hereto and
incorporated herein by reference, and all applicable local, state, and federal laws, rules
and regulations.
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3.2 Term. The term of this Agreement shall be from the date first
specified above to June 30, 2024, unless earlier terminated as provided herein. The
Commission, at its sole discretion, may extend this Agreement for three (3) additional
single year terms through June 30, 2027. Consultant shall complete the Services within
the term of this Agreement and shall meet any other established schedules and
deadlines.
3.3 Schedule of Services. Consultant shall perform the Services
expeditiously, within the term of this Agreement, and in accordance with the Audit
Schedule set forth in Exhibit "A" attached hereto and incorporated herein by reference.
Consultant represents that it has the professional and technical personnel required to
perform the Services in conformance with such conditions. In order to facilitate
Consultant's conformance with the Schedule, the Commission shall respond to
Consultant's submittals in a timely manner. Upon request of the Commission, Consultant
shall provide a more detailed schedule of anticipated performance to meet the Audit
Schedule.
3.4 Independent Contractor; Control and Payment of Subordinates. The
Services shall be performed by Consultant under its supervision. Consultant will
determine the means, method and details of performing the Services subject to the
requirements of this Agreement. Commission retains Consultant on an independent
contractor basis and Consultant is not an employee of Commission. Consultant retains
the right to perform similar or different services for others during the term of this
Agreement. Any additional personnel performing the Services under this Agreement on
behalf of Consultant shall not be employees of Commission and shall at all times be under
Consultant's exclusive direction and control. Consultant shall pay all wages, salaries, and
other amounts due such personnel in connection with their performance of Services under
this Agreement and as required by law. Consultant shall be responsible for all reports
and obligations respecting such additional personnel, including, but not limited to: social
security taxes, income tax withholding, unemployment insurance, and workers'
compensation insurance.
3.5 Conformance to Applicable Requirements. All work prepared by
Consultant shall be subject to the approval of Commission.
3.6 Substitution of Key Personnel. Consultant has represented to
Commission that certain key personnel will perform and coordinate the Services under
this Agreement. Should one or more of such personnel become unavailable, Consultant
may substitute other personnel of at least equal competence and experience upon written
approval of Commission. In the event that Commission and Consultant cannot agree as
to the substitution of key personnel, Commission shall be entitled to terminate this
Agreement for cause, pursuant to provisions of Section 3.16 of this Agreement. The key
personnel for performance of this Agreement are as follows: Andrea Jayasekara, Sam
Parera, Mariana Beuchat, Cameron Gelinas, and Sage Mohan.
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3.7 Commission’s Representative. Commission hereby designates the
Chief Financial Officer, or his or her designee, to act as its representative for the
performance of this Agreement ("Commission’s Representative"). Commission's
representative shall have the power to act on behalf of Commission for all purposes under
this Agreement. Consultant shall not accept direction from any person other than
Commission's Representative or his or her designee.
3.8 Consultant’s Representative. Consultant hereby designates Andrea
Jayasekara, or his or her designee, to act as its representative for the performance of this
Agreement ("Consultant’s Representative"). Consultant’s Representative shall have full
authority to represent and act on behalf of the Consultant for all purposes under this
Agreement. The Consultant’s Representative shall supervise and direct the Services,
using his or her best skill and attention, and shall be responsible for all means, methods,
techniques, sequences and procedures and for the satisfactory coordination of all
portions of the Services under this Agreement.
3.9 Coordination of Services. Consultant agrees to work closely with
Commission staff in the performance of Services and shall be available to Commission's
staff, consultants and other staff at all reasonable times.
3.10 Standard of Care; Licenses. Consultant shall perform the Services
under this Agreement in a skillful and competent manner, consistent with the standard
generally recognized as being employed by professionals in the same discipline in the
State of California. Consultant represents and maintains that it is skilled in the
professional calling necessary to perform the Services. Consultant warrants that all
employees and subcontractors shall have sufficient skill and experience to perform the
Services assigned to them. Finally, Consultant represents that it, its employees and
subcontractors have all licenses, permits, qualifications and approvals of whatever nature
that are legally required to perform the Services and that such licenses and approvals
shall be maintained throughout the term of this Agreement. Consultant shall perform, at
its own cost and expense and without reimbursement from Commission, any Services
necessary to correct errors or omissions which are caused by the Consultant’s failure to
comply with the standard of care provided for herein, and shall be fully responsible to the
Commission for all damages and other liabilities provided for in the indemnification
provisions of this Agreement arising from the Consultant’s errors and omissions.
3.11 Laws and Regulations. Consultant shall keep itself fully informed of
and in compliance with all local, state and federal laws, rules and regulations in any
manner affecting the performance of the Project or the Services, including all Cal/OSHA
requirements, and shall give all notices required by law. Consultant shall be liable for all
violations of such laws and regulations in connection with Services. If the Consultant
performs any work knowing it to be contrary to such laws, rules and regulations and
without giving written notice to Commission, Consultant shall be solely responsible for all
costs arising therefrom. Consultant shall defend, indemnify and hold Commission, its
officials, directors, officers, employees and agents free and harmless, pursuant to the
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indemnification provisions of this Agreement, from any claim or liability arising out of any
failure or alleged failure to comply with such laws, rules or regulations.
3.12 Insurance.
3.12.1 Time for Compliance. Consultant shall not commence work
under this Agreement until it has provided evidence satisfactory to the Commission that
it has secured all insurance required under this section, in a form and with insurance
companies acceptable to the Commission. In addition, Consultant shall not allow any
subcontractor to commence work on any subcontract until it has secured all insurance
required under this section.
3.12.2 Minimum Requirements. Consultant shall, at its expense,
procure and maintain for the duration of the Agreement insurance against claims for
injuries to persons or damages to property which may arise from or in connection with the
performance of the Agreement by the Consultant, its agents, representatives, employees
or subcontractors. Consultant shall also require all of its subcontractors to procure and
maintain the same insurance for the duration of the Agreement. Such insurance shall
meet at least the following minimum levels of coverage:
(A) Minimum Scope of Insurance. Coverage shall be at
least as broad as the latest version of the following: (1) General Liability: Insurance
Services Office Commercial General Liability coverage (occurrence form CG 0001 or
exact equivalent); (2) Automobile Liability: Insurance Services Office Business Auto
Coverage (form CA 0001, code 1 (any auto) or exact equivalent); and (3) Workers’
Compensation and Employer’s Liability: Workers’ Compensation insurance as required
by the State of California and Employer’s Liability Insurance.
(B) Minimum Limits of Insurance. Consultant shall
maintain limits no less than: (1) General Liability: $2,000,000 per occurrence for bodily
injury, personal injury and property damage. If Commercial General Liability Insurance
or other form with general aggregate limit is used, either the general aggregate limit shall
apply separately to this Agreement/location or the general aggregate limit shall be twice
the required occurrence limit; (2) Automobile Liability: $1,000,000 per accident for bodily
injury and property damage; and (3) if Consultant has an employees, Workers’
Compensation and Employer’s Liability: Workers’ Compensation limits as required by the
Labor Code of the State of California. Employer’s Practices Liability limits of $1,000,000
per accident.
3.12.3 Professional Liability. Consultant shall procure and maintain,
and require its sub-consultants to procure and maintain, for a period of five (5) years
following completion of the Project, errors and omissions liability insurance appropriate to
their profession. Such insurance shall be in an amount not less than $1,000,000 per
claim. This insurance shall be endorsed to include contractual liability applicable to this
Agreement and shall be written on a policy form coverage specifically designed to protect
against acts, errors or omissions of the Consultant. “Covered Professional Services” as
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designated in the policy must specifically include work performed under this Agreement.
The policy must “pay on behalf of” the insured and must include a provision establishing
the insurer's duty to defend.
3.12.4 Insurance Endorsements. The insurance policies shall
contain the following provisions, or Consultant shall provide endorsements on forms
approved by the Commission to add the following provisions to the insurance policies:
(A) General Liability.
(i) Commercial General Liability Insurance must
include coverage for (1) bodily injury and property damage; (2) personal Injury/Advertising
injury; (3) premises/operations liability; (4) products/completed operations liability; (5)
aggregate limits that apply per project; (6) explosion, collapse and underground (UCX)
exclusion deleted; (7) contractual liability with respect to this Agreement; (8) broad form
property damage; and (9) independent consultants coverage.
(ii) The policy shall contain no endorsements or
provisions limiting coverage for (1) contractual liability; (2) cross liability exclusion for
claims or suits by one insured against another; or (3) contain any other exclusion contrary
to this Agreement.
(iii) The policy shall give the Commission, its
directors, officials, officers, employees, and agents insured status using ISO endorsement
forms 20 10 10 01 and 20 37 10 01, or endorsements providing the exact same coverage.
(iv) The additional insured coverage under the
policy shall be “primary and non-contributory” and will not seek contribution from the
Commission’s insurance or self-insurance and shall be at least as broad as CG 20 01 04
13, or endorsements providing the exact same coverage.
(B) Automobile Liability. The automobile liability policy
shall be endorsed to state that: (1) the Commission, its directors, officials, officers,
employees and agents shall be covered as additional insureds with respect to the
ownership, operation, maintenance, use, loading or unloading of any auto owned, leased,
hired or borrowed by the Consultant or for which the Consultant is responsible; and (2)
the insurance coverage shall be primary insurance as respects the Commission, its
directors, officials, officers, employees and agents, or if excess, shall stand in an
unbroken chain of coverage excess of the Consultant’s scheduled underlying coverage.
Any insurance or self-insurance maintained by the Commission, its directors, officials,
officers, employees and agents shall be excess of the Consultant’s insurance and shall
not be called upon to contribute with it in any way.
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(C) Workers’ Compensation and Employers Liability
Coverage.
(i) Consultant certifies that he/she is aware of the
provisions of Section 3700 of the California Labor Code which requires every employer
to be insured against liability for workers’ compensation or to undertake self-insurance in
accordance with the provisions of that code, and he/she will comply with such provisions
before commencing work under this Agreement.
(ii) The insurer shall agree to waive all rights of
subrogation against the Commission, its directors, officials, officers, employees and
agents for losses paid under the terms of the insurance policy which arise from work
performed by the Consultant.
(D) All Coverages.
(i) Defense costs shall be payable in addition to the
limits set forth hereunder.
(ii) Requirements of specific coverage or limits
contained in this section are not intended as a limitation on coverage, limits, or other
requirement, or a waiver of any coverage normally provided by any insurance. It shall be
a requirement under this Agreement that any available insurance proceeds broader than
or in excess of the specified minimum insurance coverage requirements and/or limits set
forth herein shall be available to the Commission, its directors, officials, officers,
employees and agents as additional insureds under said policies. Furthermore, the
requirements for coverage and limits shall be (1) the minimum coverage and limits
specified in this Agreement; or (2) the broader coverage and maximum limits of coverage
of any insurance policy or proceeds available to the named insured; whichever is greater.
(iii) The limits of insurance required in this
Agreement may be satisfied by a combination of primary and umbrella or excess
insurance. Any umbrella or excess insurance shall contain or be endorsed to contain a
provision that such coverage shall also apply on a primary and non-contributory basis for
the benefit of the Commission (if agreed to in a written contract or agreement) before the
Commission’s own insurance or self-insurance shall be called upon to protect it as a
named insured. The umbrella/excess policy shall be provided on a “following form” basis
with coverage at least as broad as provided on the underlying policy(ies).
(iv) Consultant shall provide the Commission at
least thirty (30) days prior written notice of cancellation of any policy required by this
Agreement, except that the Consultant shall provide at least ten (10) days prior written
notice of cancellation of any such policy due to non-payment of premium. If any of the
required coverage is cancelled or expires during the term of this Agreement, the
Consultant shall deliver renewal certificate(s) including the General Liability Additional
Insured Endorsement to the Commission at least ten (10) days prior to the effective date
of cancellation or expiration.
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(v) The retroactive date (if any) of each policy is to
be no later than the effective date of this Agreement. Consultant shall maintain such
coverage continuously for a period of at least three years after the completion of the work
under this Agreement. Consultant shall purchase a one (1) year extended reporting
period A) if the retroactive date is advanced past the effective date of this Agreement; B)
if the policy is cancelled or not renewed; or C) if the policy is replaced by another claims-
made policy with a retroactive date subsequent to the effective date of this Agreement.
(vi) The foregoing requirements as to the types and
limits of insurance coverage to be maintained by Consultant, and any approval of said
insurance by the Commission, is not intended to and shall not in any manner limit or
qualify the liabilities and obligations otherwise assumed by the Consultant pursuant to
this Agreement, including but not limited to, the provisions concerning indemnification.
(vii) If at any time during the life of the Agreement,
any policy of insurance required under this Agreement does not comply with these
specifications or is canceled and not replaced, Commission has the right but not the duty
to obtain the insurance it deems necessary and any premium paid by Commission will be
promptly reimbursed by Consultant or Commission will withhold amounts sufficient to pay
premium from Consultant payments. In the alternative, Commission may cancel this
Agreement. The Commission may require the Consultant to provide complete copies of
all insurance policies in effect for the duration of the Project.
(viii) Neither the Commission nor any of its directors,
officials, officers, employees or agents shall be personally responsible for any liability
arising under or by virtue of this Agreement.
Each insurance policy required by this Agreement shall
be endorsed to state that:
3.12.5 Deductibles and Self-Insurance Retentions. Any deductibles
or self-insured retentions must be declared to and approved by the Commission. If the
Commission does not approve the deductibles or self-insured retentions as presented,
Consultant shall guarantee that, at the option of the Commission, either: (1) the insurer
shall reduce or eliminate such deductibles or self-insured retentions as respects the
Commission, its directors, officials, officers, employees and agents; or, (2) the Consultant
shall procure a bond guaranteeing payment of losses and related investigation costs,
claims and administrative and defense expenses.
3.12.6 Acceptability of Insurers. Insurance is to be placed with
insurers with a current A.M. Best’s rating no less than A:VIII, licensed to do business in
California, and satisfactory to the Commission.
3.12.7 Verification of Coverage. Consultant shall furnish
Commission with original certificates of insurance and endorsements effecting coverage
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required by this Agreement on forms satisfactory to the Commission. The certificates and
endorsements for each insurance policy shall be signed by a person authorized by that
insurer to bind coverage on its behalf. All certificates and endorsements must be received
and approved by the Commission before work commences. The Commission reserves
the right to require complete, certified copies of all required insurance policies, at any
time.
3.12.8 Subconsultant Insurance Requirements. Consultant shall not
allow any subcontractors or subconsultants to commence work on any subcontract until
they have provided evidence satisfactory to the Commission that they have secured all
insurance required under this section. Policies of commercial general liability insurance
provided by such subcontractors or subconsultants shall be endorsed to name the
Commission as an additional insured using ISO form CG 20 38 04 13 or an endorsement
providing the exact same coverage. If requested by Consultant, the Commission may
approve different scopes or minimum limits of insurance for particular subcontractors or
subconsultants.
3.13 Safety. Consultant shall execute and maintain its work so as to avoid
injury or damage to any person or property. In carrying out its Services, the Consultant
shall at all times be in compliance with all applicable local, state and federal laws, rules
and regulations, and shall exercise all necessary precautions for the safety of employees
appropriate to the nature of the work and the conditions under which the work is to be
performed. Safety precautions as applicable shall include, but shall not be limited to: (A)
adequate life protection and life saving equipment and procedures; (B) instructions in
accident prevention for all employees and subcontractors, such as safe walkways,
scaffolds, fall protection ladders, bridges, gang planks, confined space procedures,
trenching and shoring, equipment and other safety devices, equipment and wearing
apparel as are necessary or lawfully required to prevent accidents or injuries; and (C)
adequate facilities for the proper inspection and maintenance of all safety measures.
3.14 Fees and Payment.
3.14.1 Compensation. Consultant shall receive compensation,
including authorized reimbursements, for all Services rendered under this Agreement at
the rates set forth in Exhibit "B" attached hereto. The total compensation shall not exceed
Three Hundred Seventy-Four Thousand Seven Hundred Sixty Dollars ($374,760) without
written approval of Commission's Executive Director (“Total Compensation”). Extra Work
may be authorized, as described below, and if authorized, will be compensated at the
rates and manner set forth in this Agreement.
3.14.2 Payment of Compensation. Consultant shall submit to
Commission a monthly statement which indicates work completed and hours of Services
rendered by Consultant. The statement shall describe the amount of Services and
supplies provided since the initial commencement date, or since the start of the
subsequent billing periods, as appropriate, through the date of the statement.
Commission shall, within 45 days of receiving such statement, review the statement and
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pay all approved charges thereon.
3.14.3 Reimbursement for Expenses. Consultant shall not be
reimbursed for any expenses unless authorized in writing by Commission.
3.14.4 Extra Work. At any time during the term of this Agreement,
Commission may request that Consultant perform Extra Work. As used herein, "Extra
Work" means any work which is determined by Commission to be necessary for the
proper completion of the Project, but which the parties did not reasonably anticipate would
be necessary at the execution of this Agreement. Consultant shall not perform, nor be
compensated for, Extra Work without written authorization from Commission's Executive
Director.
3.15 Accounting Records. Consultant shall maintain complete and
accurate records with respect to all costs and expenses incurred and fees charged under
this Agreement. All such records shall be clearly identifiable. Consultant shall allow a
representative of Commission during normal business hours to examine, audit, and make
transcripts or copies of such records and any other documents created pursuant to this
Agreement. Consultant shall allow inspection of all work, data, documents, proceedings,
and activities related to the Agreement for a period of three (3) years from the date of final
payment under this Agreement.
3.16 Termination of Agreement.
3.16.1 Grounds for Termination. Commission may, by written notice
to Consultant, terminate the whole or any part of this Agreement at any time and without
cause by giving written notice to Consultant of such termination, and specifying the
effective date thereof. Upon termination, Consultant shall be compensated only for those
services which have been fully and adequately rendered to Commission through the
effective date of the termination, and Consultant shall be entitled to no further
compensation. Consultant may not terminate this Agreement except for cause.
3.16.2 Effect of Termination. If this Agreement is terminated as
provided herein, Commission may require Consultant to provide all finished or unfinished
Documents and Data, as defined below, and other information of any kind prepared by
Consultant in connection with the performance of Services under this Agreement.
Consultant shall be required to provide such document and other information within fifteen
(15) days of the request.
3.16.3 Additional Services. In the event this Agreement is terminated
in whole or in part as provided herein, Commission may procure, upon such terms and in
such manner as it may determine appropriate, services similar to those terminated.
3.17 Delivery of Notices. All notices permitted or required under this
Agreement shall be given to the respective parties at the following address, or at such
other address as the respective parties may provide in writing for this purpose:
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CONSULTANT: COMMISSION:
Conrad LLP Riverside County
23161 Lake Center Dr. Transportation Commission
Suite 200 4080 Lemon Street, 3rd Floor
Lake Forest, CA 92630 Riverside, CA 92501
Attn: Anrdra Jayasekara Attn: Executive Director
Such notice shall be deemed made when personally delivered or when
mailed, forty-eight (48) hours after deposit in the U.S. Mail, first class postage prepaid
and addressed to the party at its applicable address. Actual notice shall be deemed
adequate notice on the date actual notice occurred, regardless of the method of service.
3.18 Ownership of Materials/Confidentiality.
3.18.1 Documents & Data. This Agreement creates an exclusive and
perpetual license for Commission to copy, use, modify, reuse, or sub-license any and all
copyrights and designs embodied in plans, specifications, studies, drawings, estimates,
materials, data and other documents or works of authorship fixed in any tangible medium
of expression, including but not limited to, physical drawings or data magnetically or
otherwise recorded on computer diskettes, which are prepared or caused to be prepared
by Consultant under this Agreement (“Documents & Data”).
Consultant shall require all subcontractors to agree in writing that
Commission is granted an exclusive and perpetual license for any Documents & Data the
subcontractor prepares under this Agreement.
Consultant represents and warrants that Consultant has the legal
right to grant the exclusive and perpetual license for all such Documents & Data.
Consultant makes no such representation and warranty in regard to Documents & Data
which were prepared by design professionals other than Consultant or provided to
Consultant by the Commission.
Commission shall not be limited in any way in its use of the
Documents & Data at any time, provided that any such use not within the purposes
intended by this Agreement shall be at Commission’s sole risk.
All programs, working papers, files and other materials of the
Consultant made pursuant to this Agreement shall remain the property of the Consultant.
The Commission will have access to this material at any time. All reports delivered by the
Consultant and its subcontractors pursuant to the Agreement shall become the property
of the Commission without restriction or limitation on their use and shall be made available
upon request, to the Commission at any time. Original copies of the deliverable reports
shall be delivered to the Commission upon completion of the Services or termination of
the Services. The Consultant shall be permitted to retain copies of such items for the
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furtherance of its technical proficiency; however, publication of this material is subject to
the written approval of the Commission.
3.18.2 Intellectual Property. In addition, Commission shall have and
retain all right, title and interest (including copyright, patent, trade secret and other
proprietary rights) in all plans, specifications, studies, drawings, estimates, materials,
data, computer programs or software and source code, enhancements, documents, and
any and all works of authorship fixed in any tangible medium or expression, including but
not limited to, physical drawings or other data magnetically or otherwise recorded on
computer media (“Intellectual Property”) prepared or developed by or on behalf of
Consultant under this Agreement as well as any other such Intellectual Property prepared
or developed by or on behalf of Consultant under this Agreement.
The Commission shall have and retain all right, title and interest in
Intellectual Property developed or modified under this Agreement whether or not paid for
wholly or in part by Commission, whether or not developed in conjunction with Consultant,
and whether or not developed by Consultant. Consultant will execute separate written
assignments of any and all rights to the above referenced Intellectual Property upon
request of Commission.
Consultant shall also be responsible to obtain in writing separate
written assignments from any subcontractors or agents of Consultant of any and all right
to the above referenced Intellectual Property. Should Consultant, either during or
following termination of this Agreement, desire to use any of the above-referenced
Intellectual Property, it shall first obtain the written approval of the Commission.
All materials and documents which were developed or prepared by
the Consultant for general use prior to the execution of this Agreement and which are not
the copyright of any other party or publicly available and any other computer applications,
shall continue to be the property of the Consultant. However, unless otherwise identified
and stated prior to execution of this Agreement, Consultant represents and warrants that
it has the right to grant the exclusive and perpetual license for all such Intellectual Property
as provided herein.
Commission further is granted by Consultant a non-exclusive and
perpetual license to copy, use, modify or sub-license any and all Intellectual Property
otherwise owned by Consultant which is the basis or foundation for any derivative,
collective, insurrectional, or supplemental work created under this Agreement.
3.18.3 Confidentiality. All ideas, memoranda, specifications, plans,
procedures, drawings, descriptions, computer program data, input record data, written
information, and other Documents and Data either created by or provided to Consultant
in connection with the performance of this Agreement shall be held confidential by
Consultant. Such materials shall not, without the prior written consent of Commission, be
used by Consultant for any purposes other than the performance of the Services. Nor
shall such materials be disclosed to any person or entity not connected with the
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performance of the Services or the Project. Nothing furnished to Consultant which is
otherwise known to Consultant or is generally known, or has become known, to the
related industry shall be deemed confidential. Consultant shall not use Commission's
name or insignia, photographs of the Project, or any publicity pertaining to the Services
or the Project in any magazine, trade paper, newspaper, television or radio production or
other similar medium without the prior written consent of Commission.
3.18.4 Infringement Indemnification. Consultant shall defend,
indemnify and hold the Commission, its directors, officials, officers, employees,
volunteers and agents free and harmless, pursuant to the indemnification provisions of
this Agreement, for any alleged infringement of any patent, copyright, trade secret, trade
name, trademark, or any other proprietary right of any person or entity in consequence of
the use on the Project by Commission of the Documents & Data, including any method,
process, product, or concept specified or depicted.
3.19 Cooperation; Further Acts. The Parties shall fully cooperate with one
another, and shall take any additional acts or sign any additional documents as may be
necessary, appropriate or convenient to attain the purposes of this Agreement.
3.20 Attorney's Fees. If either party commences an action against the
other party, either legal, administrative or otherwise, arising out of or in connection with
this Agreement, the prevailing party in such litigation shall be entitled to have and recover
from the losing party reasonable attorney's fees and costs of such actions.
3.21 Indemnification. Consultant shall defend, indemnify and hold the
Commission, its directors, officials, officers, agents, consultants, employees and
volunteers free and harmless from any and all claims, demands, causes of action, costs,
expenses, liabilities, losses, damages or injuries, in law or in equity, to property or
persons, including wrongful death, in any manner arising out of or incident to any alleged
negligent acts, omissions or willful misconduct of the Consultant, its officials, officers,
employees, agents, consultants, and contractors arising out of or in connection with the
performance of the Services, the Project or this Agreement, including without limitation,
the payment of all consequential damages, attorneys fees and other related costs and
expenses. Consultant shall defend, at Consultant’s own cost, expense and risk, any and
all such aforesaid suits, actions or other legal proceedings of every kind that may be
brought or instituted against the Commission, its directors, officials, officers, agents,
consultants, employees and volunteers. Consultant shall pay and satisfy any judgment,
award or decree that may be rendered against the Commission or its directors, officials,
officers, agents, consultants, employees and volunteers, in any such suit, action or other
legal proceeding. Consultant shall reimburse the Commission and its directors, officials,
officers, agents, consultants, employees and volunteers, for any and all legal expenses
and costs, including reasonable attorney’s fees, incurred by each of them in connection
therewith or in enforcing the indemnity herein provided. Consultant’s obligation to
indemnity shall not be restricted to insurance proceeds, if any, received by the
Commission or its directors, officials, officers, agents, consultants, employees and
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volunteers. This Section 3.21 shall survive any expiration or termination of this
Agreement.
3.22 Entire Agreement. This Agreement contains the entire Agreement
of the parties with respect to the subject matter hereof, and supersedes all prior
negotiations, understandings or agreements. This Agreement may only be
supplemented, amended, or modified by a writing signed by both parties.
3.23 Governing Law. This Agreement shall be governed by the laws of
the State of California. Venue shall be in Riverside County.
3.24 Time of Essence. Time is of the essence for each and every
provision of this Agreement.
3.25 Commission's Right to Employ Other Consultants. The Commission
reserves the right to employ other consultants in connection with this Project.
3.26 Successors and Assigns. This Agreement shall be binding on the
successors and assigns of the parties, and shall not be assigned by Consultant without
the prior written consent of Commission.
3.27 Prohibited Interests and Conflicts.
3.27.1 Solicitation. Consultant maintains and warrants that it has not
employed nor retained any company or person, other than a bona fide employee working
solely for Consultant, to solicit or secure this Agreement. Further, Consultant warrants
that it has not paid nor has it agreed to pay any company or person, other than a bona
fide employee working solely for Consultant, any fee, commission, percentage, brokerage
fee, gift or other consideration contingent upon or resulting from the award or making of
this Agreement. For breach or violation of this warranty, Commission shall have the right
to rescind this Agreement without liability.
3.27.2 Conflict of Interest. For the term of this Agreement, no
member, officer or employee of Commission, during the term of his or her service with
Commission, shall have any direct interest in this Agreement, or obtain any present or
anticipated material benefit arising therefrom.
3.27.3 Conflict of Employment. Employment by the Consultant of
personnel currently on the payroll of the Commission shall not be permitted in the
performance of this Agreement, even though such employment may occur outside of the
employee’s regular working hours or on weekends, holidays or vacation time. Further,
the employment by the Consultant of personnel who have been on the Commission
payroll within one year prior to the date of execution of this Agreement, where this
employment is caused by and or dependent upon the Consultant securing this or related
Agreements with the Commission, is prohibited.
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3.27.4 Employment Adverse to the Commission. Consultant shall
notify the Commission, and shall obtain the Commission’s written consent, prior to
accepting work to assist with or participate in a third-party lawsuit or other legal or
administrative proceeding against the Commission during the term of this Agreement.
3.28 Equal Opportunity Employment. Consultant represents that it is an
equal opportunity employer and it shall not discriminate against any employee or
applicant for employment because of race, religion, color, national origin, ancestry, sex
or age. Such non-discrimination shall include, but not be limited to, all activities related
to initial employment, upgrading, demotion, transfer, recruitment or recruitment
advertising, layoff or termination. Consultant shall also comply with all relevant provisions
of Commission's Disadvantaged Business Enterprise program, Affirmative Action Plan or
other related Commission programs or guidelines currently in effect or hereinafter
enacted.
3.29 Subcontracting. Consultant shall not subcontract any portion of the
work or Services required by this Agreement, except as expressly stated herein, without
prior written approval of the Commission. Subcontracts, if any, shall contain a provision
making them subject to all provisions stipulated in this Agreement.
3.30 Reserved.
3.31 Employment of Apprentices. This Agreement shall not prevent the
employment of properly indentured apprentices in accordance with the California Labor
Code, and no employer or labor union shall refuse to accept otherwise qualified
employees as indentured apprentices on the work performed hereunder solely on the
ground of race, creed, national origin, ancestry, color or sex. Every qualified apprentice
shall be paid the standard wage paid to apprentices under the regulations of the craft or
trade in which he or she is employed and shall be employed only in the craft or trade to
which he or she is registered.
3.32 No Waiver. Failure of Commission to insist on any one occasion
upon strict compliance with any of the terms, covenants or conditions hereof shall not be
deemed a waiver of such term, covenant or condition, nor shall any waiver or
relinquishment of any rights or powers hereunder at any one time or more times be
deemed a waiver or relinquishment of such other right or power at any other time or times.
3.33 Eight-Hour Law. Pursuant to the provisions of the California Labor
Code, eight hours of labor shall constitute a legal day's work, and the time of service of
any worker employed on the work shall be limited and restricted to eight hours during any
one calendar day, and forty hours in any one calendar week, except when payment for
overtime is made at not less than one and one-half the basic rate for all hours worked in
excess of eight hours per day ("Eight-Hour Law"), unless Consultant or the Services are
not subject to the Eight-Hour Law. Consultant shall forfeit to Commission as a penalty,
$50.00 for each worker employed in the execution of this Agreement by him, or by any
sub-consultant under him, for each calendar day during which such workman is required
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or permitted to work more than eight hours in any calendar day and forty hours in any one
calendar week without such compensation for overtime violation of the provisions of the
California Labor Code, unless Consultant or the Services are not subject to the Eight-
Hour Law.
3.34 Subpoenas or Court Orders. Should Consultant receive a subpoena
or court order related to this Agreement, the Services or the Project, Consultant shall
immediately provide written notice of the subpoena or court order to the Commission.
Consultant shall not respond to any such subpoena or court order until notice to the
Commission is provided as required herein, and shall cooperate with the Commission in
responding to the subpoena or court order.
3.35 Survival. All rights and obligations hereunder that by their nature are
to continue after any expiration or termination of this Agreement, including, but not limited
to, the indemnification and confidentiality obligations, and the obligations related to receipt
of subpoenas or court orders, shall survive any such expiration or termination.
3.36 No Third Party Beneficiaries. There are no intended third party
beneficiaries of any right or obligation assumed by the Parties.
3.37 Labor Certification. By its signature hereunder, Consultant certifies
that it is aware of the provisions of Section 3700 of the California Labor Code which
require every employer to be insured against liability for Workers’ Compensation or to
undertake self-insurance in accordance with the provisions of that Code, and agrees to
comply with such provisions before commencing the performance of the Services.
3.38 Counterparts. This Agreement may be signed in counterparts, each
of which shall constitute an original.
3.39 Incorporation of Recitals. The recitals set forth above are true and
correct and are incorporated into this Agreement as though fully set forth herein.
3.40 Invalidity; Severability. If any portion of this Agreement is declared
invalid, illegal, or otherwise unenforceable by a court of competent jurisdiction, the
remaining provisions shall continue in full force and effect.
3.41 Conflicting Provisions. In the event that provisions of any attached
exhibits conflict in any way with the provisions set forth in this Agreement, the language,
terms and conditions contained in this Agreement shall control the actions and obligations
of the Parties and the interpretation of the Parties’ understanding concerning the
performance of the Services.
3.42 Headings. Article and Section Headings, paragraph captions or
marginal headings contained in this Agreement are for convenience only and shall have
no effect in the construction or interpretation of any provision herein.
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3.43 Assignment or Transfer. Consultant shall not assign, hypothecate,
or transfer, either directly or by operation of law, this Agreement or any interest herein,
without the prior written consent of the Commission. Any attempt to do so shall be null
and void, and any assignees, hypothecates or transferees shall acquire no right or interest
by reason of such attempted assignment, hypothecation or transfer.
3.44 Authority to Enter Agreement. Consultant has all requisite power and
authority to conduct its business and to execute, deliver, and perform the Agreement.
Each Party warrants that the individuals who have signed this Agreement have the legal
power, right, and authority to make this Agreement and bind each respective Party.
[SIGNATURES ON FOLLOWING PAGE]
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SIGNATURE PAGE
TO
RIVERSIDE COUNTY TRANSPORTATION COMMISSION
AGREEMENT FOR AUDIT AND ATTESTATION SERVICES
FOR THE EASTERN RIVERSIDE COUNTY
MEASURE A RECIPIENTS AND
TRANSPORTATION DEVELOPMENT ACT CLAIMANTS
OF THE
RIVERSIDE COUNTY TRANSPORTATION COMMISSION
WITH CONRAD LLP
IN WITNESS WHEREOF, this Agreement was executed on the date first
written above.
RIVERSIDE COUNTY
TRANSPORTATION COMMISSION CONRAD LLP
By: _________________________ By: ____________________________
Anne Mayer Signature
Executive Director
__________________________
Name
__________________________
Title
Approved as to Form: Attest:
By:____________________________ By: ________________________
Best Best & Krieger LLP Its: Secretary
General Counsel
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EXHIBIT "A"
SCOPE OF SERVICES
[TO BE INSERTED BEHIND THIS PAGE]
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EXHIBIT A - 1
Statement of Services
A. General
The Riverside County Transportation Commission (RCTC), as the transportation planning agency
for Riverside County, is issuing this Request for Proposal in order to secure services from a
Consultant of certified public accountants to perform for the fiscal years ending June 30, 2021,
2022, and 2023, with the option of performing such services for three (3) additional one-year
terms:
Financial and compliance audits of RCTC’s Transportation Development Act (TDA)
claimants for transit (including funding from Local Transportation Fund (LTF) Article 4,
State Transit Assistance (STA), State of Good Repair (SGR), Low Carbon Transit
Operations Program (LCTOP), and Proposition 1B);
Financial and compliance audits of RCTC’s TDA claimants for bicycle and pedestrian
projects (consisting of funding from LTF Article 3); and
Agreed-upon procedures similar to those proposed in Appendix A, Section G, for RCTC’s
Measure A recipients of local streets and roads (LSR) funding.
Measure A Agreed Upon Procedures
The Measure A LSR Agreed-Upon Procedures apply to all eligible cities in Riverside County.
Measure A LSR funding is allocated and disbursed monthly to the cities, as specified in Measure
A. RCTC does not currently anticipate any incorporations or dis-incorporations of cities that would
result in a change in Measure A LSR recipients. Currently, all cities meet the eligibility
requirements that include:
Participation in the Coachella Valley Transportation Uniform Mitigation Fee (TUMF)
Program, as applicable;
Annual submittal of a 5-Year Capital Improvement Plan (CIP) list of projects;
Annual Maintenance of Effort certification; and
Annual Project Status Report for the prior fiscal year CIP.
Transportation Development Act Audits
The TDA Transit audits will be performed for the Palo Verde Valley Transit Agency. TDA Transit
operating and capital allocations are approved annually by RCTC in June based on the submittal
of each transit operator’s Short-Range Transit Plan. The transit operators also may unexpended
Proposition 1B funding for capital/rehabilitation and/or security projects received through Caltrans
and the California Office of Emergency Services (CalOES), respectively.
The TDA Bicycle and Pedestrian audits apply to local jurisdictions awarded funding by RCTC
for bicycle and pedestrian projects through a biennial competitive call for projects. Local
jurisdictions generally have two years to complete projects, including those projects approved in
the FY 2019/20 Call for Projects at RCTC’s June 12, 2019 meeting. However, as per revised
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guidelines approved by RCTC at its January 13, 2021 meeting effective with the FY 2021/22 Call
for Projects to be awarded at the June 9, 2021 RCTC meeting, local jurisdictions will now have
three years to complete projects. Claimants may request disbursement of their allocations by
RCTC on a reimbursement basis in accordance with RCTC’s policies. Accordingly, the TDA
Bicycle and Pedestrian audits are dependent on claims for expenditures of such funds.
Anticipated Changes in Audit and Attestation Services
RCTC does not anticipate any change in the local jurisdictions subject to TDA Transit audit and
Measure A LSR attestation services. The local jurisdictions requiring TDA Bicycle and Pedestrian
audits will be determined each year based on actual disbursements.
The Chief Financial Officer is designated as the coordinator of the work and may appoint a
Finance Department staff to coordinate day-to-day oversight. The Chief Financial Officer will
serve as the liaison to the audit oversight committee designated by RCTC.
The audits are to be performed by the Consultant(s) in accordance with generally accepted
auditing standards, including use of the most current version of each of the following standards
and guidelines:
American Institute of Certified Public Accountants audit and attestation standards;
General Accounting Office’s (GAO) Government Auditing Standards;
Measure A conformance requirements (Section G); and
Transit requirements (Section H.
B. Scope of Work to be Performed
The selected Consultant(s) will be required to perform the following tasks:
Audit of the transit and transportation financial statements of the jurisdictions receiving
TDA funds in accordance with auditing standards generally accepted in the United States
of America; the standards applicable to financial audits contained in Government Auditing
Standards, issued by the Comptroller General of the United States; the TDA as
summarized in the TDA Guidebook; and SGR, LCTOP, and Proposition 1B audit
guidelines specified by Caltrans and CalOES.
Performance of agreed-upon procedures similar to those listed in Section F solely to assist
RCTC in evaluating the applicable jurisdictions’ Measure A transportation funds and
degree of their compliance with RCTC’s requirements of the Measure A LSR program.
RCTC reserves the right to modify the agreed-upon procedures as deemed necessary to
fulfill its oversight responsibilities for the Measure A LSR program.
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C. Deliverables
Following completion of the audits and agreed-upon procedures and a review of the draft reports
by RCTC, the Consultant(s) shall issue:
A report on the fair presentation of the financial statements for the TDA claimants in
conformity with generally accepted accounting principles and on compliance and internal
control.
A report on the agreed-upon procedures related to the Measure A recipients of LSR
funding.
Drafts of the reports will be provided to RCTC staff and the applicable TDA claimant or Measure
A recipient. The Chief Financial Officer or designee shall review and approve each report prior
to issuance.
For each report issued to RCTC, the Consultant shall issue one PDF copy to RCTC and one PDF
to the applicable TDA claimant or Measure A recipient, as applicable.
Financial and Compliance Reports
The Consultant will submit a financial and compliance report for each TDA audit. The Consultant
will be responsible for the preparation, editing, and printing of all financial and compliance reports,
including the financial statements and notes to the financial statements. Although the Consultant
will prepare the financial statements, management of the TDA Claimant is responsible for the
financial statements.
Agreed-Upon Procedures
The Consultant will submit a report for each Measure A recipient, as applicable, listing the
procedures performed, results of procedures performed, and findings, if any. The Consultant will
be responsible for preparation, editing, and printing of all agreed-upon procedure reports.
D. Required Communications
Significant Deficiencies – In the required reports on compliance and internal controls, the
Consultant shall communicate any significant deficiencies found during the audit of the TDA
claimants. A significant deficiency shall be defined as a control deficiency, or combination of
control deficiencies, that adversely affects the entity’s ability to initiate, authorize, record, process,
or report financial data reliably in accordance with generally accepted accounting principles such
that there is more than a remote likelihood that a misstatement of the entity’s financial statements
that is more than inconsequential will not be prevented or detected by the entity’s internal control.
Significant deficiencies that are also material weaknesses shall be identified as such in the report.
Other control deficiencies discovered by the Consultant may be reported in a separate letter to
management, which shall be referred to in the reports on compliance and internal controls.
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The report on compliance and internal controls shall include all material instances of
noncompliance. All nonmaterial instances of noncompliance may be reported in a separate
management letter, which shall be referred to in the report on compliance and internal controls.
Irregularities and illegal acts – The Consultant shall be required to make an immediate, written
report of all irregularities and illegal acts or indication of illegal acts of which they become aware
to the jurisdiction/agency and RCTC’s audit oversight committee, Executive Director, and Chief
Financial Officer.
Planning meetings – The Consultant shall meet with RCTC staff at least once a year prior to the
commencement of the audits and agreed-upon procedures.
E. Audit Schedule
The work to be performed at the jurisdictions and agencies shall be arranged by the Consultant
with the individual jurisdiction or agency after the conclusion of a planning meeting with RCTC
and RCTC’s issuance of audit notification letters to each jurisdiction and agency.
The work should be scheduled for no later than November 15 of each year. Barring unforeseen
circumstances, the Consultant must conduct the work activities and provide all required reports
and information to RCTC no later than December 31 of each year. The TDA audits are required
to be submitted to the State Controller by December 31 of each year; however, an extension may
be granted by RCTC for no more than 90 days. RCTC’s policy for Measure A reports follows the
TDA requirement; however, a formal extension is generally not issued.
The Consultant shall keep RCTC apprised at least monthly on the status of the audits and any
issues which have been encountered. RCTC will provide assistance, to the extent necessary
and/or possible, to resolve such issues. If circumstances outside the control of the Consultant or
RCTC arise and the deadline cannot be met, both parties agree to communicate the
circumstances and develop an action plan.
F. Measure A Proposed Local Streets and Roads Agreed-Upon Procedures (Proposed)
1. Review the 2009 Measure A (Ordinance 02-001) compliance requirements. Western
County jurisdictions are required to participate in the Transportation Uniform Mitigation
Fee (TUMF) program and in the Multi-Species Habitat Conservation Plan (MSHCP),
which are administered by the Western Riverside Council of Governments (WRCOG)
and the Western Riverside County Regional Conservation Authority (RCA),
respectively. Coachella Valley jurisdictions are required to participate in the TUMF
program administered by the Coachella Valley Association of Governments (CVAG).
Indicate participation in TUMF and/or MSHCP programs.
2. Obtain from RCTC the approved Five-Year Capital Improvement Plan (CIP) for the
fiscal year.
3. Obtain from the jurisdiction a detail general ledger and balance sheet for the fiscal
year.
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a. Identify the amount of Measure A cash and investments recorded at the end of the
fiscal year. Compare amount to Measure A fund balance and provide an
explanation for any differences greater than 25% of fund balance.
b. Identify any amounts due from other funds.
c. Identify the components of ending fund balance for the Measure A activity (e.g.,
nonspendable, restricted, assigned, committed, unassigned) [and for County of
Riverside only by geographic area].
i. Identify the existence of any restatement of Measure A fund balance; inquire
of management as to the reason for any restatement and provide a summary
of the restatement items.
ii. Compare ending fund balance to total revenues for the current year and prior
two years. If ending fund balance is greater than sum of total revenues for the
three-year period, inquire of management as to the reason(s) for the
accumulation of fund balance (e.g., status of specific projects included in the
5-Year CIP).
4. Obtain an operating statement for the Measure A activity for the fiscal year, including
budget amounts; include the operating statement as an exhibit to the report.
a. Review the revenues in the operating statement.
i. Inquire of management as to what fund is used to record Measure A revenues
received from RCTC and identify what the total revenues were for the fiscal
year.
ii. Obtain from RCTC a listing of Measure A payments to the jurisdiction.
1. Compare the Measure A sales tax revenues recorded by the jurisdiction to
the listing of payments made by RCTC. [Use gross amounts paid by RCTC]
iii. Obtain from the jurisdiction an interest allocation schedule for the fiscal year.
1. Identify the allocation amount of interest income to Measure A activity and
what the amount of interest income was for the fiscal year. If no interest
was allocated, inquire of management as to reason for not allocating
interest income.
b. Review the expenditures in the operating statement.
i. Inquire of management as to what fund is used to record Measure A
expenditures and what the total expenditures were for the fiscal year.
ii. Select expenditures for testing that comprise at least 20% of the total
expenditures.
1. For the expenditures selected for testing, compare the dollar amount listed
on the general ledger to the supporting documentation.
2. For the expenditures selected for testing, review the 5-Year CIP and note
if the project is included in the 5-Year CIP and is an allowable cost.
iii. Inquire of management as to the nature of any transfers in or out recorded in
the Measure A fund. For any transfers out, determine if nature of transfer out
was included in the 5-Year CIP.
iv. Inquire of management as to the amount of general or non-project-related
indirect costs, if any, included in expenditures. If indirect costs exceed 8% of
Measure A revenue, inquire of management as to the basis for indirect costs
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charged to Measure A. If indirect costs are identified, determine if such costs
are included in the 5-Year CIP.
v. Inquire of management as to the amount of debt service expenditures recorded
in the Measure A fund and determine is such costs are included in the 5-Year
CIP.
5. Obtain from RCTC a listing of jurisdictions who participate in the Western County or
Coachella Valley TUMF programs.
a. If the jurisdiction is a participant in the TUMF program, select at least one
disbursement for validation as to the amount remitted to WRCOG or CVAG, as
applicable.
b. Indicate the total amount of TUMF fees collected and remitted during the fiscal
year.
6. Obtain from RCTC a listing of jurisdictions who participate in the Western County
MSHCP program.
a. If the jurisdiction is a participant in the MSHCP program, select at least one
disbursement for validation as to the amount remitted to RCA, as applicable.
b. Inquire of management as to the existence of any fees collected in prior years and
not remitted to RCA as of the end of the fiscal year.
c. Indicate the total amount of MSHCP fees collected and remitted during the fiscal
year.
7. Obtain from RCTC the MOE base year requirement, including supporting detail of the
calculations for its city/County, and the carryover amount allowed as of the beginning
of the fiscal year.
a. Obtain from the city/County a calculation of its current year MOE amount in the
format similar to its base year calculation. Attach a copy of the calculation
worksheet provided by the city/County as an exhibit to the report.
b. Compare the current year MOE amounts from the General Fund to the general
ledger.
c. Review the General Fund general ledger to determine if there were any transfers
in to fund any MOE amounts.
d. Compare the amount of current year MOE expenditures to the MOE base
requirement and add any excess to, or subtract any deficiency from, the carryover
amount.
e. If the amount of discretionary funds spent is less than the MOE base requirement
(MOE deficiency), determine the amount of any prior year MOE carryover using
the information obtained from RCTC and reduce the MOE deficiency by any
available MOE carryover to determine an adjusted current year expenditure
amount.
G. Measure A Recipient Conformance Requirements
1. Allowable Costs. Measure A funds may only be used for transportation purposes
including the administration of Division 25 including legal actions related thereto; the
construction, capital acquisition, maintenance, and operation of streets, roads,
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highways including state highways and public transit systems; and for related
purposes. These purposes include expenditures for the planning, environmental
reviews, engineering and design costs, and related right-of-way acquisition.
a. Eligible local street and road projects costs include any engineering, capital, or
maintenance cost. Decisions on projects are to be made by local jurisdictions
subject to Capital Improvement Program requirements.
i. Annual budget reflecting the local government or agency’s anticipated receipts
and expenditures should be prepared and submitted to RCTC upon approval
by the governing board. The data contained in the capital improvement plans
submitted to RCTC should be included in the recipient’s budgets. These
budgets allow for proper evaluation by RCTC of the recipient’s activities on an
annual basis. (Policy adopted May 8, 1991)
b. Eligible transit programs include special discount fares for seniors and
handicapped people, commuter bus services, funding for computer assisted
rideshare programs, and “seed” programs to encourage the creation of vanpools.
Additionally, funds will be used to provide further reductions for the truly needy and
to expand existing services and implement new services. Bus capital replacement
and additional bus service may also be an eligible program within the Coachella
Valley, subject to a determination of funding by the Coachella Valley Association
of Governments (CVAG).
2. Maintenance of Effort (MOE). Additional funds provided under Measure A are
intended to supplement existing local revenues being used for transportation
purposes. Government agencies shall maintain their existing commitment of local
funds for street highway and public transit purposes pursuant to Measure A.
a. The local cities and the County shall annually submit to RCTC a list of the proposed
uses for these funds and a certification that the MOE requirement is being met. If
in any fiscal year, the maintenance of effort requirement is not met, the agency
shall not be eligible for any Measure A funds in the following fiscal year. Such
funds shall be distributed to the remaining local governments using the formula for
the area.
i. Agencies may use any local discretionary funds expended for local streets and
roads purposes during previous fiscal years which were in excess of their
maintenance of effort requirements to meet their MOE requirements for the
fiscal year. (Measure A Maintenance of Effort Guidelines)
b. RCTC shall assure the cities’ and County compliance with MOE funding
requirements before allocating funds for local streets and roads.
c. RCTC shall not allocate funds to an individual city or the County for local streets
and roads use within the Western County and Coachella Valley areas unless
WRCOG or CVAG indicates participation of agency in the Transportation Uniform
Mitigation Fee program necessary for implementation of the planned regional
arterial system.
3. Allocation of Funds to Geographic Areas. Funds for transportation purposes shall
be allocated to the Western County, Coachella Valley, and Palo Verde Valley areas
proportionate to the Measure A funds generated within these areas.
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4. Allocation of Funds within Geographic Areas. RCTC shall return 2009 Measure A
funds to the geographic areas as follows (Applicable to RCTC):
a. Western County. To be distributed for the following programs: $370 million
(approx. 11% to new corridors; $1,020 million (approx. 30%) to highways; $390
million (approx. 12%) to public transit; $300 million (approx. 9%) to regional
arterials; $970 million (approx. 29%) to local streets and roads; $270 million
(approx. 8%) to bond financing; and $40 million (approx. 1%) to economic
development.
i. Local streets and roads funding are to be distributed by a formula based on
75% on proportionate population and 25% on 2009 Measure A revenues
generated within each jurisdiction, if they participate in the Transportation
Uniform Mitigation Fee program and Multi-Species Habitat Conservation Plan.
If local agencies choose not to participate in the TUMF and MSHCP programs,
the funds they would otherwise receive for local streets and roads will be added
to the Measure A funds for the Regional Arterial System administered by
RCTC.
b. Coachella Valley. To be distributed for the following programs: 50% to highways
and regional arterial projects; 35% to local streets and roads; and 15% to
specialized public transit.
i. Local streets and roads funds will be provided to Coachella Valley cities and
the County if they participate in the Transportation Uniform Mitigation Fee
program. If local agencies choose not to participate in the TUMF program, the
funds they would otherwise receive for local streets and roads will be added to
the Measure A funds for the Regional Arterial System administered by CVAG.
ii. Local streets and roads funds are to be distributed by a formula based on 50%
on proportionate dwelling units and 50% on 2009 Measure A revenues
generated within each jurisdiction, as interpreted in Ordinance and direction
provided by CVAG.
c. Palo Verde Valley. To be distributed 100% to local streets and roads.
i. Local streets and roads funds are to be distributed by a formula based on 75%
on proportionate population and 25% on sales tax revenues generated in each
jurisdiction.
5. Accounting Records. Measure A recipients are required to maintain accurate,
complete, and separate accounting records for all sources of the funds they receive.
Small not-for-profit agencies are encouraged but not required to maintain separate
accounting records as long as Measure A receipts, related revenues, and
expenditures can be readily identified. If RCTC’s independent auditors are unable to
readily identify which funds are being used for expenditures, then the agency will be
required to maintain separate accounting records and cash accounts if they are to
continue receiving Measure A allocations. Any agency which maintains poor
accounting records will receive funding allocations on a reimbursement basis only.
(Policy adopted May 12, 1993)
6. Interfund Borrowing. Interfund borrowing from Measure A funding sources to
another local jurisdiction fund is strictly prohibited. Cities and agencies must maintain
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sufficient cash balances so as not to impair their Measure A funds. Evidence of
interfund borrowing or impaired cash balances will result in the city or agency receiving
funds from RCTC on a reimbursement basis only after any existing city or agency
reserves of prior Commission funds have been fully depleted. (Policy adopted May
12, 1993)
7. Interest Income Allocations. Interest on Measure A funds shall accrue separately
for all of RCTC’s programs as defined in the text of Measure A. This interest allocation
policy is applicable to the entire County, and such allocations shall be made monthly.
Interest earned on unexpended Measure A monies should be recorded in the Measure
A fund established by a local government or other agency receiving local streets and
roads or specialized transit monies. As these funds are restricted, the related interest
earned should be restricted as required by governmental regulations and other
transportation funding including the Transportation Act. (Policy adopted May 8, 1991
and May 12, 1993)
8. Accumulated Deficits. Accumulated funding source deficits are the responsibility of
the local jurisdiction. RCTC will consider allocating additional funds for such deficits
when justifiable on a case-by-case basis. (Policy adopted May 12, 1993)
9. Budget Variances. Significant budget variances should be avoided. All local
jurisdictions are required to compare the budget to actual results and make mid-year
revisions as needed. (Policy adopted May 12, 1993)
10. Unexpended Monies. Whenever the annual fiscal audit or the proposed update of
the Five Year Capital Improvement Program of a local agency shows a Measure A
Local Streets and Road Program carryover balance in excess of three (3) times the
annual allocation to an agency, Commission staff will:
a. Meet with the local agency to have them explain the reason for the carryover and
explore alternatives for moving projects faster, and
b. Present a report of their findings to RCTC’s Budget and Finance Committee to
determine if any further action should be considered and proposed to the full
Commission.
(Policy included in December 13, 1995 revisions to the RCTC Program and Funding
Guide)
H. Transit Compliance Requirements
The auditors should review the TDA regulations for Local Transportation Fund and State
Transit Assistance funding. California Code Section 6664 discusses the fiscal and
compliance audits of all claimants, Section 6666 provides the compliance audit tasks for
non-transit claimants, and Section 6667 provides the compliance audit tasks for transit
claimants. The TDA Statutes and California Code of Regulation Guidebook is available at:
https://dot.ca.gov/-/media/dot-media/programs/rail-mass-
transportation/documents/f0009844-tda-07-2018-a11y.pdf.
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EXHIBIT A - 10
California Department of Transportation program guidelines for State of Good Repair
funds received through RCTC are located at:
https://dot.ca.gov/-/media/dot-media/programs/rail-mass-
transportation/documents/sgr/202008-sgr-final-guidelines-a11y.pdf
Proposition 1B accountability requirements for Public Transportation Modernization,
Improvement and Service Enhancement Account (PTMISEA) funds received through
Caltrans are located at:
https://dot.ca.gov/-/media/dot-media/programs/rail-mass-
transportation/documents/ptmisea/201910-ptmisea-guidelines-a11y.pdf
Proposition 1B guidelines for Transit System Safety, Security, and Disaster Response
Account (TSSSDRA) funds received through CalOES are located at:
https://www.caloes.ca.gov/GrantsManagementSite/Documents/FY 2016-17 HR
Guidance with Allocations.pdf#search=TSSSDRA guidelines
LCTOP program guidelines for funds received through Caltrans are located at:
https://dot.ca.gov/-/media/dot-media/programs/rail-mass-
transportation/documents/lctop/201909-lctop-fy19-20-guidelines-a11y.pdf
End of Statement of Services
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17336.00000\8752982.1
EXHIBIT "B"
COMPENSATION
[TO BE INSERTED BEHIND THIS PAGE]
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(Amounts subject to rounding
differences)
FIRM PROJECT TASKS/ROLE COST
Conrad LLP2 Audit and Attestation Services 374,760$
-
374,760$
TASK NUMBER TASK DESCRIPTION COST
TDA Article 3/Bicycle and Pedestrian2 Audit Services 149,310$
TDA Article 4/Transit Audit Services 44,250
Measure A Local Streets and Roads Agreed-Upon Procedures Attestation Services 181,200
374,760
-
374,760$
FISCAL YEAR PROJECT COST
FY 2020/212 Audit and Attestation Services 61,960$
FY 2021/222 Audit and Attestation Services 62,160
FY 2022/232 Audit and Attestation Services 62,360
FY 2023/24 (Option Year 1)2 Audit and Attestation Services 62,560
FY 2024/25 (Option Year 2)2 Audit and Attestation Services 62,760
FY 2025/26 (Option Year 3)2 Audit and Attestation Services 62,960
374,760$ TOTAL COSTS
OTHER DIRECT COSTS
2 TDA Article 3/Bicycle and Pedestrian audits will be determined annually based on TDA claimants; accordingly, amounts are estimated.
This estimate assumes seven (7) annual TDA Article 3/Bicycle and Pedestrian audits.
SUBTOTAL
OTHER DIRECT COSTS
TOTAL COSTS
1 Commission authorization pertains to total contract award amount. Compensation adjustments between consultants may occur;
however, the maximum total compensation authorized may not be exceeded.
EXHIBIT "B"
COMPENSATION SUMMARY1
Prime Consultant:
TOTAL COSTS
EXHIBIT B-1
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AUDIT AND ATTESTATION SERVICES
TDA Claimants
Measure A Recipients
MSHCP Member Agencies
Theresia Trevino, Chief Financial Officer
1
Audit & Attestation Services
APRIL 26, 2021
2
•Transit (Article 4)
•Banning, Beaumont, Corona, Riverside, PVVTA
•Bicycle and Pedestrian Projects (Article 3)
•Cities and County with Call for Projects allocations
TDA Claimant
Financial/Compliance
Audits
•Local Streets and Roads
•All cities and County
•Specialized Transit
•Nonprofit and community organizations with Call for Projects awards
Measure A Recipient
Agreed-Upon
Procedures
•All Western Riverside County cities and County
MSHCP Member
Agency Agreed-Upon
Procedures
Services to be determined annually noted in italics
Procurement and Work Allocation
APRIL 26, 2021
3
RFP 21 -19-034-WC
•9 proposals submitted
•Evaluation results and work allocation:
•BCA Watson Rice LLP
•2 cities and all specialized transit
•Brown Armstrong Accountancy Corporation
•10 cities and County
•Conrad LLP
•2 cities
•Eide Bailly LLP
•4 cities, including municipal transit operators
RFP 21 -19-034-EC
•8 proposals submitted
•Evaluation results and work allocation:
•Brown Armstrong Accountancy Corporation
•2 cities
•Conrad LLP
•8 cities and PVVTA
Staff Recommendations
APRIL 26, 2021
4
Authorize
Chair or Executive Director to finalize and execute agreements,
including option years Executive Director or designee to approve contingency work
Award Eastern County agreements for three-year term with three one-year options for total aggregate amount not to exceed $433,000
Brown Armstrong Conrad
Award Western County agreements for three-year term with three one-year options for total aggregate amount not to exceed $1.6 million
BCA Brown Armstrong Conrad Eide Bailly
AGENDA ITEM 9
Agenda Item 9
RIVERSIDE COUNTY TRANSPORTATION COMMISSION
DATE: April 26, 2021
TO: Budget and Implementation Committee
FROM: Jillian Guizado, Planning and Programming Director
THROUGH: John Standiford, Deputy Executive Director
SUBJECT: 2021 Mid-Cycle State Transportation Improvement Program Funding
Distribution and Programming
STAFF RECOMMENDATION:
This item is for the Committee to:
1) Approve the 2021 Mid-Cycle State Transportation Improvement Program (STIP) funding
distribution among the three geographic areas in Riverside County per the adopted STIP
Intracounty Memorandum of Understanding (MOU);
2) Approve programming $10,069,068 of 2021 Mid-Cycle STIP Western Riverside County,
Coachella Valley, and Palo Verde Valley funding capacity to the 71/91 Connector project,
and submit the 2021 Mid-Cycle STIP to the California Transportation Commission (CTC);
3) Include programming Planning, Programming, and Monitoring (PPM) funds (2 percent of
STIP programming capacity) in the amount of $205,491 in Fiscal Year 2022/23;
4) Approve swapping the Coachella Valley STIP share with Surface Transportation Block
Grant (STBG) funds in the amount of $2,159,815;
5) Approve Agreement No. 07-71-028-04, Amendment No. 4 to Agreement
No. 07-71-028-00, with the city of Blythe (Blythe) to trade $43,297 of Palo Verde Valley
STIP funds with Measure A Western Riverside County Highway funds to facilitate delivery
of local arterial projects;
6) Authorize the Executive Director, pursuant to legal counsel review, to execute Agreement
No. 07-71-028-04 on behalf of the Commission upon CTC adoption of the 2021 Mid-Cycle
STIP; and
7) Forward to the Commission for final action.
BACKGROUND INFORMATION:
On December 27, 2020, the President signed the Coronavirus Response and Relief Supplemental
Appropriations Act (CRRSAA) stimulus bill. CRRSAA appropriated an additional $10 billion for
Highway Infrastructure Programs (HIP) nationwide, of which approximately $911.8 million was
apportioned to the state of California. These funds are available for obligation until
September 30, 2024 and have very flexible uses as specified in federal law section 133(b) of Title
23, U.S.C., as well as costs related to preventive maintenance, routine maintenance, operations,
242
Agenda Item 9
personnel, including salaries of employees or contractors, debt service payments, availability
payments, and coverage for other revenue losses.
Traditionally, HIP funds are apportioned by the California Department of Transportation
(Caltrans) by formula, whereby Riverside County receives approximately 5.9 percent for its
population share. The CTC, typically responsible for the programming and allocation of state-
generated transportation funds, elected to oversee the distribution of the CRRSAA funds. In
coordination with Caltrans, the CTC set aside 60 percent of CRRSAA funds to backfill revenue
losses anticipated in the State Highway Operation and Protection Program, leaving the remaining
40 percent for distribution to regions throughout the state. The CTC held three workshops to
discuss how the 40 percent of regional funds should be distributed. Despite precedence and
clear written guidance from the Federal Highway Administration, the CTC opted for an
unprecedented distribution of federal formula funds: of the 40 percent available to regions,
50 percent will be distributed under the Surface Transportation Block Grant (STBG) program and
50 percent will be distributed under the STIP.
STBG is a federal formula program authorized in the current federal transportation authorization
law, Fixing America’s Surface Transportation (FAST) Act. Riverside County typically receives
5.9 percent or $31 million annually for its population share in STBG federal formula funds under
the FAST Act.
The STIP is a five-year program of projects administered by the CTC every two years. The next
STIP is anticipated to be adopted in March 2022. Every two years when there is a new STIP cycle,
the state allocates STIP funds to two broad programs – the Regional Improvement Program (RIP),
which receives 75 percent of the total STIP funds, and the Interregional Transportation
Improvement Program managed by Caltrans, which receives the remaining 25 percent. The
75 percent RIP funding is further subdivided by formula into county shares. The formula is
75 percent population and 25 percent state highway lane miles. County shares are available
solely for projects nominated by regional agencies.
Per the Commission’s STIP intracounty formula distribution most recently adopted at the
July 10, 2019 Commission meeting for the 2020 STIP, STIP funds are allocated to Western County,
Coachella Valley, and Palo Verde Valley based on the most recent fiscal year taxable sales by
geographic area used for Measure A allocations, as seen in Table 1.
Table 1. STIP intracounty formula
Geographic Area 2020 STIP
Western County 78.12%
Coachella Valley 21.45%
Palo Verde Valley 00.43%
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Agenda Item 9
DISCUSSION:
On March 24, 2021, the CTC approved the distribution of CRRSAA funds. With the adopted
distribution methodology, the Commission will receive $10,576,603 of STBG funds and
$10,274,559 of STIP funds for a combined total of $20,851,162 of CRRSAA funding.
Per the Commission’s STIP intracounty distribution formula, each geographic area receives STIP
funding based on the above percentages. In addition, STIP guidelines allow up to five percent of
RIP funding for PPM activities. However, the Commission’s policy is to set aside only two percent
for PPM activities to fund Project Study Reports, planning documents, and staff costs associated
with STIP funding and programming. PPM funding is available for Coachella Valley Association of
Governments (CVAG) and Commission activities.
As presented in Table 2, staff recommends approval of the 2021 Mid-Cycle STIP funding
distribution among the three geographic areas in Riverside County per the adopted STIP
Intracounty Memorandum of Understanding (MOU). Staff further recommends to include
programming PPM funds (2 percent of STIP programming capacity) in the amount of $205,491 in
Fiscal Year 2022/23. Due to the amount of STIP funding available to each geographic area being
relatively small, as seen in Table 2, staff recommends swapping the Coachella Valley STIP share
with STBG funds and the Palo Verde Valley STIP share with Measure A funds. Staff also
recommends the Commission authorize the Executive Director, pursuant to legal counsel review,
to execute an amendment to the agreement with the city of Blythe for the Palo Verde Valley STIP
trade upon CTC adoption of the 2021 Mid-Cycle STIP.
Table 2. STIP intracounty distribution
Geographic Area 2020 STIP 2021 Mid-Cycle STIP
STIP PPM 2% off-the-top $205,491
Western County 78.12% $7,865,956
Coachella Valley 21.45% $2,159,815
Palo Verde Valley 00.43% $43,297
If approved, this will result in the Commission having $10,069,068 of STIP funds to program in
Western County. Staff recommends the Commission approve programming these STIP funds on
the construction phase of the 71/91 Connector project and submitting the 2021 Mid-Cycle STIP
to the CTC. This project is already programmed in the 2020 STIP.
The Coachella Valley STIP share of $2,159,815 is proposed to be funded from the STBG funds the
Commission will receive from CRRSAA and will be available for programming by CVAG, as is the
standard practice for formula funds due to the Coachella Valley. Other than the federal
requirements associated with federal funding, STBG is the most flexible fund source available.
The remainder of the STBG funds, approximately $8,416,788, will be programmed on
Commission priority projects as quickly as possible to meet the intent of the funds providing a
stimulus to Riverside County.
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Agenda Item 9
FISCAL IMPACT:
Financial Information
In Fiscal Year Budget: Yes
N/A Year: FY 2021/22
FY 2022/23+ Amount: $248,788
$10,025,771
Source of Funds: CRRSAA/STIP funds Budget Adjustment: No
N/A
GL/Project
Accounting No.:
652040 415 41502 106 66 41501 $205,491 (PPM STIP revenues)
003021 415 41502 262 31 41501 $10,069,068 (71/91 Connector revenues)
623994 81301 262 31 81301 $43,297 (Blythe STIP trade expenditure)
Fiscal Procedures
Approved: Date: 04/14/2021
245
AGENDA ITEM 10
Agenda Item 10
RIVERSIDE COUNTY TRANSPORTATION COMMISSION
DATE: April 26, 2021
TO: Budget and Implementation Committee
FROM: David Knudsen, Interim External Affairs Director
THROUGH: John Standiford, Deputy Executive Director
SUBJECT: State and Federal Legislative Update
This item is for the Committee to:
1) Receive and file an update on state and federal legislation;
2) Adopt the following bill positions:
a) SB 261 (Allen) – Oppose
b) AB 840 (Holden) – Oppose; and
3) Forward to the Commission for final action.
DISCUSSION:
State Update
The California State Legislature returned to Sacramento from its week-long spring recess on
April 5, 2021. Legislators have an extremely busy month ahead as they work through policy
committee hearings and facing deadlines to advance bills introduced in their house of origin.
Simultaneously, Governor Newsom is preparing his budget revision to be released in May, which
will take into account any adjustments to state revenue or any changes he wants to make to his
2021-22 budget proposal.
The California Department of Finance released an economic update in March with preliminary
General Fund tax receipts for the first eight months of the fiscal year. According to its report, tax
receipts were $14.34 billion above the 2021-22 Governor’s budget forecast of $111.518 billion.
This combined with $26 billion in federal COVID-19 relief California is expected to receive, the
Governor and the Legislature may decide to increase the state’s discretionary spending already
proposed $165 billion. Staff will monitor how the Governor and Legislature will ultimately decide
to use the windfall of revenue. June 15, 2021 is the Constitutional deadline for the Legislature to
pass a budget.
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Agenda Item 10
Legislation
SB 261 (Allen) – Staff Recommended Position: Oppose
Senate Bill (SB) 261 authored by Senator Ben Allen (Santa Monica) would update the state’s
greenhouse gas (GHG) reduction goals for the transportation sector, create new vehicle miles
traveled (VMT) reduction goals, increase the scrutiny of a Metropolitan Planning Organization’s
(MPO) Sustainable Communities Strategy (SCS) by the California Air Resources Board (CARB), and
create new requirements for local governments to report on the number of housing, jobs, and
transit supportive infrastructure that demonstrates the implementation of an SCS’s strategies.
SB 261 adds additional requirements to SB 375 (Chapter 728, Statutes of 2008), which directed
CARB to set regional targets for reducing GHG emissions from the automobile and light-duty truck
sector for 2020 and 2035. In setting regional GHG emissions reduction targets, SB 375 established
a Regional Targets Advisory Committee (RTAC) that included local and regional officials to advise
CARB on the target-setting. Since the passage of SB 375, MPOs like Southern California
Association of Governments (SCAG) and county transportation commissions like the Riverside
County Transportation Commission (RCTC), have been working in partnership with each other
and with CARB to meet the Southern California region’s GHG reduction targets from the
automobile and light-duty truck sector for 2020 and 2035. SB 375 requires MPOs to create SCSs
in conjunction with their Regional Transportation Plans (RTPs) and establishes a "bottom-up"
approach to ensure that cities, counties, and county transportation commissions are involved in
developing regional plans to achieve those GHG reduction targets.
SB 261 would implement the following:
1. Extends GHG reduction targets and adds new VMT reduction targets: SB 261 would
require CARB to set regional targets for reducing greenhouse gas emissions from
automobile and light trucks for 2045 and 2050. In addition, the bill would require CARB
to provide each region with VMT reduction targets for 2035, 2045, and 2050.
2. Increased Scrutiny and Double-Checking an MPO’s SCS by CARB: This bill would provide
vague justifications for CARB to reject an MPO’s SCS and subject the MPO’s SCS to
increased levels of scrutiny and double-checking by CARB. SB 261 would require the MPO
to submit an SCS to CARB within 60 days of the MPO’s adoption of the document and
then doubles the time CARB has to accept or reject an MPO’s SCS from 60 to 120 days.
3. New Reporting Requirements: SB 261 would require each city or county to report to the
MPO on the number of housing, jobs, and transit-supportive infrastructure, existing and
planned, that demonstrates the implementation of the SCS’s strategies. Cities and
counties would be required to report this information every other year.
VMT reduction targets disproportionately and unfairly impact commuter communities, such as
those in Riverside County whose residents find affordable living but who have to commute long
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Agenda Item 10
distances to job centers. Riverside County is among the fastest-growing counties in the state.
Imposing uniform VMT reduction policies without a complete understanding of the region and
substantial state funding could reduce our communities’ access to employment, education,
economic development, and recreational opportunities.
As a result of the issues identified in the bill, staff is recommending the Commission take an
oppose position. This recommendation is consistent with the Commission’s adopted 2021 State
and Federal Legislative Platform, including:
• Environment - Oppose efforts to place new environmental criteria (such as GHG reduction
or VMT reduction) on transportation projects and programs without commensurate
funding for alternatives or mitigations.
• Equity and Fairness - Policies should be implemented recognizing regional variance by
distinguishing high-growth regions for their impact on the economy, environment, and
should be dynamic in order to address future population growth.
AB 840 (Holden) – Staff Recommended Position: Oppose
Assembly Bill (AB) 840, authored by Assemblymember Chris Holden, would require
San Bernardino County Transportation Authority (SBCTA) and LA Metro to jointly develop a
funding and implementation program for regional transit services to include service to
international airports. In developing the program, the agencies shall consult with SCAG, California
Transportation Commission, Ontario International Airport Authority, Metro Gold Line Foothill
Extension Construction Authority, and Counties of Los Angeles and San Bernardino. This bill is
another attempt after two bills last year, AB 2011 (Holden) and SB 1390 (Portantino), failed to
pass out of the Legislature to compel SBCTA to extend the Metro Gold Line to Ontario
International Airport.
While the specific matters at the center of this legislation do not apply directly to Riverside
County, if approved, this bill creates a troublesome precedent for RCTC and all self-help
transportation agencies in California who are entrusted with local governance of voter-approved
tax revenues, including:
• Involving the state in the working partnerships between county transportation
commissions
• Challenging the independent decision-making authority of the regional
transportation authority
Any effort by the state to mandate a project not consistent with local priorities erodes the faith
voters and taxpayers have placed in the transportation agencies to deliver projects that benefit
county residents and maximize taxpayer dollars.
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Agenda Item 10
Staff’s recommendation for the Commission to take an oppose position is consistent with the
adopted 2021 State and Federal Legislative Platform, including:
Opposing these bills to their authors based on three principles outlined the Commission-adopted
2020 State and Federal Legislative Platform:
• Protect Our Authority and Revenue - Existing statutory authorities for the
Commission should be preserved and protected.
• Protect Our Authority and Revenue - Oppose legislation that restructures or
interferes with governance of the Commission or other local and regional
transportation agencies without the support and consent of the entity affected.
Federal Update
On March 31, 2021, President Joe Biden unveiled his American Jobs Plan (AJP), a $2.3 trillion
proposal including $1.3 trillion for infrastructure spending. The AJP proposes investment in “core
assets” transportation funding levels, including:
• Roads and Bridges ($115 billion)
• Transit ($85 billion)
• Aviation ($25 billion)
• Ports and Waterways ($17 billion)
• Rail ($80 billion)
More details on the AJP are anticipated in the coming weeks as Congress holds hearings to debate
the proposal. It is not yet known if the budget reconciliation process will be used to move the
AJP or if the package will move under “regular order.” The decision on the legislative path will
impact the final details and timing on action related to the package.
Surface Transportation Reauthorization
Both the House and Senate continue to develop legislation to reauthorize federal surface
transportation programs.
In the House, the Chairman of the House Transportation and Infrastructure Committee (T&I),
Congressman Peter DeFazio (Oregon), has stated his intent to complete work on a surface
transportation bill by late May. As part of the T&I Committee’s process, a Member Day hearing
was held on April 14, 2021, to receive testimony from Members of Congress on their policy
priorities.
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Agenda Item 10
In addition, the T&I Committee is seeking earmark requests from Members of Congress to be
included in the surface transportation reauthorization legislation. As of the writing of this staff
report, RCTC has proposed the following projects to members of the Riverside County delegation:
• State Route 79 Realignment Project – Right-of-Way Environmental Mitigation
• Interstate 15 Northern Extension (I-15 NEXT)
In the Senate, the Environment and Public Works Committee (EPW), which has jurisdiction over
federal highway programs, has also continued its work to develop a new surface transportation
bill. The Chairman of the EPW Committee has also expressed a desire to complete work on the
highway title of a surface transportation bill by late May. Recall that there are two other Senate
Committees with jurisdiction over surface transportation programs that have yet to articulate a
timeframe for their action. At this time, the Senate has not yet agreed to include earmarks in
this legislation.
Community Project Funding
Congressional offices across the country, including those in Riverside County, accepted
applications for community projects to receive federal dollars under new Community Project
Funding (CPF), formally known as earmarks, which allows members of Congress to request
funding for as many as 10 projects within their home districts. The 10 projects selected by
Members will go to the House Appropriations Committee for review, and there will be a public
database of all requests received by the committee.
In order to achieve decision-making transparency and reduce potential abuse, several guardrails
have been set, including: requiring Members to certify that they and their families do not have a
financial interest in any request made by the Member; creating a searchable online database of
all CPF requests; banning for-profit recipients; and requiring each Member to demonstrate
community benefit and support for each request. Each congressional office required each
applicant to answer a series of questions to vet the legitimacy of the project and the request.
In April, RCTC submitted Community Project Funding requesting $3 million for each of the
following projects:
• Interstate 15 Smart Freeway Pilot Project
• Interstate 15 Corridor Operations Project
• Interstate 10 Highland Springs Interchange Improvements
• Moreno Valley/March Field Station Improvements Project
Attachments:
1) RCTC Community Project Funding Request Letter for Smart Freeway Pilot Project
2) RCTC Community Project Funding Request Letter for Interstate 15 Corridor Operations
Project
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Agenda Item 10
3) RCTC Community Project Funding Request Letter for Interstate 10 Highland Springs
Interchange Improvements
4) RCTC Community Project Funding Request Letter for Moreno Valley/March Field Station
Improvements Project
5) Legislative Matrix – April 2021
251
April 8, 2021
The Honorable Ken Calvert
United States House of Representatives
U.S. Capitol
Washington, DC 20510
Subject: Support for the Riverside County Transportation Commission’s Community Project Funding Request
Dear Congressman Calvert:
On behalf of the Riverside County Transportation Commission (RCTC), I am pleased to request Community Project
Funding of $3 million for the Smart Freeway Pilot Project. Planned on northbound Interstate 15 from the San
Diego/Riverside County Line to the 15/215 Interchange in Murrieta, this $18 million pilot project is regionally
significant, socially equitable, and will have a positive impact on the health and safety of the region’s residents,
businesses, and freight and goods movement.
This project pilots new and emerging technologies to demonstrate vast improvements to motorist safety and
traffic congestion by using controlled, continuously variable adaptive ramp metering to improve traffic flow and
reduce weaving and sudden stops. The project will also benefit the region by:
•Expanding Regional Mobility: This pilot project will improve regional mobility by improving the service
times of Riverside Transit Agency’s CommuterLink Express Routes 205/206, which provide essential transit
service between Temecula and Corona, as well as job centers beyond via Metrolink.
•Enhancing Economic Development: The project will improve throughput along a vital trade corridor from
the ports of Long Beach, Los Angeles, and San Diego to the rest of the country and will provide broad
economic benefit and support the tourism industry in the Temecula Valley.
•Supporting Access to all Communities: The Smart Freeways project will provide more equitable access to
regional job centers for low-income communities immediately adjacent to the project and further north
on I-15 and I-215. In addition, this project will reduce rear-end collisions and limit income shocks that can
irrevocably push vulnerable populations into poverty.
•Decreasing Pollution (or Improving Air Quality): Decreased vehicle idling and improved transit service, as
well as reductions in sudden vehicle deceleration and acceleration, will reduce air pollution as the region’s
population continues to grow.
ATTACHMENT 1
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The Honorable Ken Calvert
April 8, 2021
Page 2
The project will use $4 million in Fiscal Year 2020-21 Congestion Mitigation and Air Quality funds, $1.2 million in
State Highway Operation and Protection Program funds, as well as and local funds to complete the project. It is
also included and consistent with adopted regional transportation plans.
RCTC’s innovative and forward-thinking Smart Freeway Pilot Project merits Community Project Funding because
of the immediate positive impact it will have on our region’s residents, the economy, and the environment. I
encourage you to give it full and fair consideration.
Please contact Executive Director Anne Mayer at (951) 787-7141 if you have any questions.
Sincerely,
Jan Harnik
Chair
253
April 8, 2021
The Honorable Ken Calvert
United States House of Representatives
U.S. Capitol
Washington, DC 20510
Subject: Support for the Riverside County Transportation Commission’s Community Project Funding Request
Dear Congressman Calvert:
On behalf of the Riverside County Transportation Commission (RCTC), I am pleased to request Community
Project Funding of $3 million for the Interstate 15 Corridor Operations Project (I-15 COP). This $38 million
project is regionally significant, socially equitable, and will benefit the health and safety of our region’s
residents, businesses, and freight and goods movement.
The project proposes to add an auxiliary lane on southbound I-15 between Cajalco Road in Corona and Weirick
Road in Temescal Valley in Riverside County. The auxiliary lane is designed to relieve heavy traffic congestion
in this area, especially during peak afternoon commute times, by removing a bottleneck to accommodate
existing and future traffic volumes. The project will also be compatible with other RCTC planned I-15 corridor
improvements, such as the future I-15 Express Lanes Project Southern Extension, expected to be open as early
as 2028.
The I-15 COP will benefit our region by:
•Expanding Regional Mobility: The project with help reduce vehicle congestion that is prevalent during
peak afternoon commute hours.
•Increasing Safety: Adding an auxiliary lane will reduce weaving at the high use exits of Cajalco Road in
Corona and Weirick Road in Temescal Valley, reducing chances of vehicle collisions.
•Enhancing Economic Development: Traffic congestion relief is essential to the region’s economic
vitality, due to Interstate 15’s role in carrying commuters, freight, and regional tourists. Low-income
communities are concentrated both in the I-15/State Route-91 corridor of Corona to the north of the
project and in Lake Elsinore to the south of the project, and this improvement would improve access to
job centers and increase productivity.
ATTACHMENT 2
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The Honorable Ken Calvert
April 8, 2021
Page 2
• Improving Transit: This project will expand multimodal options by optimizing travel conditions on I-15
for riders of Riverside Transit Agency CommuterLink Express Routes 205/206 between Temecula and
Corona, as well as job centers beyond via Metrolink.
• Supporting All Communities: Relieving traffic congestion is also critical for this area, particularly
disadvantaged communities east of the I-15 and project area, which experience high levels of pollution
particulates, largely from idling vehicles on I-15.
This project is regionally significant. In the western United States, the I-15 corridor is the spine of a
transportation network extending more than 1,470 miles through California, Nevada, Arizona, Utah, Idaho, and
Montana. I-15 links coastal ports to inland population centers and connects with major east-west corridors that
serve the entire U.S. The I-15 corridor links the San Diego metropolitan area with the Riverside-San Bernardino
metropolitan area. Due to rapid population growth in recent years in the California Mojave Desert region, I-15
has become a heavily traveled commuter route between metropolitan Southern California and the Victor
Valley. It is also the primary access route between Southern California and Las Vegas with more than 25 million
people driving this corridor annually.
The I-15 COP merits Community Project Funding because of the immediate positive effect it will have on our
region’s residents, the economy, and the environment. I encourage you to give it full and fair consideration.
Please contact Executive Director Anne Mayer at (951) 787-7141 if you have any questions.
Sincerely,
Jan Harnik
Chair
255
April 8, 2021
The Honorable Raul Ruiz, M.D.
United States House of Representatives
U.S. Capitol
Washington, DC 20510
Subject: Support for the Riverside County Transportation Commission’s Community Project Funding
Request
Dear Congressman Ruiz:
On behalf of the Riverside County Transportation Commission (RCTC), I am pleased to request Community
Project Funding of $3 million for the Interstate 10/Highland Springs Avenue Interchange Improvement project.
This $25 million project, informed by preliminary studies conducted in partnership with Caltrans and the cities
of Banning and Beaumont, would reconfigure lanes to the I-10 underpass at Highland Springs Avenue and add
auxiliary lanes to the ramps to improve traffic flow and safety. This project is socially equitable and will have a
positive impact on the health and safety of the region’s residents, businesses, and freight and goods movement.
The I-10/Highland Springs Avenue Interchange serves as the main connection to large housing developments
and multiple retail, commercial, medical, and employment centers. With one of the highest peak traffic volumes
per hour and per month in Riverside County, it also is in proximity to State Route 60, a major trucking and
logistics route for Southern California and the nation.
The I-10/Highland Springs Avenue Interchange will benefit our region by:
•Enhancing Traffic Safety: Current queue lengths exceed capacity to and from I-10 at Highland Springs
Avenue. This creates impacted intersections, which prevents emergency vehicles from being able to
move efficiently within the cities of Banning and Beaumont.
•Spurring Economic Development: This project will stimulate economic development in a rapidly
developing area by reducing traffic congestion and improving motorist access to I-10, San Gorgonio
Memorial Hospital to the north, and retail and commercial businesses to the north and south of I-10, all
vital commerce and employment centers.
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The Honorable Raul Ruiz, M.D.
April 8, 2021
Page 2
• Supporting Underserved Communities: This project will particularly benefit low-income communities
living with household incomes at and below 80 percent of the state median, located east and south of
the interchange, providing equitable access to employment centers and medical services. The project
would additionally provide congestion relief to the interchanges to the east on I-10, which are situated
in an identified disadvantaged community with a CalEnviroScreen 3.0 percentile of 80-85 percent.
• Enhancing Multimodal Transit: The project will improve mobility and support multimodal transit by
providing a Class II bike lane within the project limits, which is also served by Riverside Transit Agency
Route 31, a link to San Jacinto and Moreno Valley, and SunLine 10 Commuter Link, which provides regular
service between Indio and the San Bernardino Transit Center and Metrolink Station.
• Improving Air Quality: The project will reduce idling and limit increases in air pollution as the area
population continues to grow.
The project will be funded with $22 million from the Western Riverside Council of Governments (WRCOG)
Transportation Uniform Mitigation Fee (TUMF) with the balance from the Community Funding Project.
The I-10/Highland Springs Avenue Interchange Improvement project merits this funding because of the
immediate positive effect it will have on our region’s residents, their environment, and the economy. I
encourage you to give it full and fair consideration.
Please contact Executive Director Anne Mayer at (951) 787-7141 if you have any questions.
Sincerely,
Jan Harnik
Chair
257
April 8, 2021
The Honorable Mark Takano
U. S. House of Representatives
United States Capitol
Washington, DC 20510
Subject: Support for the Riverside County Transportation Commission’s Community Project Funding
Request
Dear Congressman Takano:
On behalf of the Riverside County Transportation Commission (RCTC), I am pleased to request Community
Project Funding of $3 million for the Moreno Valley/March Field Station Improvement Project, in partnership
with the Southern California Regional Rail Authority (Metrolink). This station serves Metrolink’s 91/Perris
Valley Line and is the midpoint between the Perris-Downtown Station and the Riverside-Downtown Station.
This project is regionally significant and connects commuters to employment and education centers in Orange
and Los Angeles counties. Metrolink also provides service throughout a five-county region, providing access to
locations throughout southern California. The project will add a train platform and upgrade existing tracks that
will lead to service efficiencies, expand regional mobility options, and reduce reliance on passenger vehicles,
which generate more pollutants per traveler than passenger trains. This environmental health benefit is critical,
considering the 91/Perris Valley Line corridor in Riverside, Moreno Valley, and Perris are surrounded by
disadvantaged communities with pollution burden percentiles of over 90, per CalEnviroScreen 3.0.
The project will benefit the region by:
•Increasing Service Capacity: Adding a second train platform and lengthening the existing train platform
to accommodate the length of Metrolink’s standard eight-car trains. The project also will upgrade 2.7
miles of track that are part of a future nine-mile double-track corridor south of the station.
•Alleviating Traffic Congestion: Reducing traffic congestion on Interstate 215 by providing more public
transit options for Riverside County residents, including those in southwestern Riverside County, who
have some of the longest commutes in Southern California.
•Improving Air Quality: Reducing auto emissions by offering more options for train service, which
encourages more commuters to travel by train.
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The Honorable Mark Takano
April 8, 2021
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The Moreno Valley/March Field Station Improvement Project, with a total cost of $25 million, has already
received $16.9 million in Federal Transit Administration Section 5307 formal funds. If the project receives
Community Project Funding, RCTC would fully fund the remainder of the project with other federal and local
sources.
The Moreno Valley/March Field Station Improvements deserve Community Project Funding because of the
immediate positive effect it will have on our region’s residents, the economy, and the environment. I encourage
you to give it full and fair consideration.
Please contact Executive Director Anne Mayer at (951) 787-7141 if you have any questions.
Sincerely,
Jan Harnik
Chair
259
RIVERSIDE COUNTY TRANSPORTATION COMMISSION - POSITIONS ON STATE AND FEDERAL LEGISLATION – APRIL 2021
Legislation/ Author Description Bill Status Position Date of Board Adoption
AB 1499 (Daly) Removes the January 1, 2024 sunset date for Department of
Transportation and regional transportation agencies to use the design-
build procurement method for transportation projects in California.
Referred to Assembly
Appropriations Committee
April 5, 2021
SUPPORT April 14, 2021
SB 623 (Newman) Clarifies existing law to ensure toll operators statewide can improve
service to customers and enforce toll policies while increasing privacy
protections for the use of personally identifiable information (PII).
Referred to Senate
Judiciary Committee
April 13, 2021
SUPPORT
Staff action based on platform
April 5, 2021
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RIVERSIDE COUNTY TRANSPORTATION COMMISSION
BUDGET AND IMPLEMENTATION COMMITTEE
ROLL CALL
APRIL 26, 2021
Present Absent
County of Riverside, District II X
County of Riverside, District III X
City of Banning X
City of Beaumont X
City of Calimesa X
City of Canyon Lake X
City of Cathedral City X
City of Coachella X
City of Desert Hot Springs X
City of Lake Elsinore X
City of Palm Desert X
City of Palm Springs X
City of San Jacinto X
City of Riverside X
City of Wildomar X
TO: Riverside County Transportation Commission
FROM: Lisa Mobley, Clerk of the Board
DATE: April 20, 2021
SUBJECT: G.C. 84308 Compliance – Potential Conflict of Interest
California Government Code 84308 states a Commissioner may not participate in any discussion or
action concerning a contract or amendment if a campaign contribution of more than $250 is
received in the past 12 months or 3 months following the conclusion from a bidder or bidder’s agent.
This prohibition does not apply to the awarding of contracts that are competitively bid. The
Commission’s procurement division asks potential vendors to disclose any contributions made to
the campaigns of any Commissioner as part of their submitted bid packets. As an additional
precaution, those entities are included below in an effort to give Commissioners opportunity to
review their campaign statements for potential conflicts. Please note the entities listed in this
memo are not encompassing of all potential conflicts and are in addition to any personal conflicts
of interest such as those disclosed on Statement of Economic Interests – Form 700 or prohibited
by Government Code Section 1090. Please contact me should you have any questions.
Agenda Item No. 8 - Agreements for Audit and Attestation Services
Consultant(s): BCA Watson Rice LLP
Michael de Castro, Managing Partner
2355 Crenshaw Boulevard, Suite 150
Torrance, CA 90505
Brown Armstrong Accountancy Corporation
Eric H. Xin, Partner and Ryan L. Nielsen, Partner
4200 Truxtun Avenue, Suite 300
Bakersfield, CA 93309
Conrad LLP
Andrea Jayasekara, Partner
23161 Lake Center Drive, Suite 200
Lake Forest, CA 92630
Eide Bailly LLP
Roger Alfaro, Partner
19340 Jesse Lane, Suite 260
Riverside, CA 92508