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HomeMy Public PortalAbout08 August 23, 2021 Budget & Implementation MEETING AGENDA Budget and Implementation Committee Time: 9:30 a.m. Date: August 23, 2021 Location: BOARD ROOM County of Riverside Administration Center 4080 Lemon St, First Floor, Riverside CA 92501 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 Kyle Pingree / 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 / Patricia Lock Dawson, 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, August 23, 2021 BOARD ROOM County of Riverside Administrative Center 4080 Lemon Street, First Floor Riverside, California Pursuant to Governor Newsom’s Executive Order N-29-20, (March 18, 2020), the Budget and Implementation Committee meeting will also be conducted via video conferencing and by telephone. Please follow the instructions below to join the meeting remotely. 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 August 22, 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 via Zoom, please click on the link below: https://forms.rivco.org/ConstituentSpeakingRequest.aspx#gsc.tab=0. 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 3. PLEDGE OF ALLEGIANCE Budget and Implementation Committee August 23, 2021 Page 2 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 – JUNE 28, 2021 Page 1 6B. QUARTERLY SALES TAX ANALYSIS Page 7 Overview This item is for the Committee to: 1) Receive and file the sales tax analysis for Quarter 1, 2021 (1Q 2021); and 2) Forward to the Commission for final action. 6C. SINGLE SIGNATURE AUTHORITY REPORT Page 16 Overview This item is for the Committee to: 1) Receive and file the Single Signature Authority report for the fourth quarter ended June 30, 2021; and 2) Forward to the Commission for final action. Budget and Implementation Committee August 23, 2021 Page 3 6D. QUARTERLY PUBLIC ENGAGEMENT METRICS REPORT, APRIL – JUNE 2021 Page 18 Overview This item is for the Committee to: 1) Receive and file the Quarterly Public Engagement Metrics Report for April - June 2021; and 2) Forward to the Commission for final action. 6E. QUARTERLY REPORTING OF CONTRACT CHANGE ORDERS FOR CONSTRUCTION CONTRACTS Page 28 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 ended June 30, 2021; and 2) Forward to the Commission for final action. 6F. FISCAL YEAR 2021/22 ANNUAL LOCAL TRANSPORTATION FUND PLANNING ALLOCATIONS TO WESTERN RIVERSIDE COUNCIL OF GOVERNMENTS AND COACHELLA VALLEY ASSOCIATION OF GOVERNMENTS Page 30 Overview This item is for the Committee to: 1) Approve an allocation of Local Transportation Fund (LTF) funds for planning in the amount of $866,250 for Western Riverside Council of Governments (WRCOG) and $472,500 for Coachella Valley Association of Governments (CVAG) for efforts identified in each agency’s FY 2021/22 LTF Program Objectives/Work Plan (Work Plan) that supports transportation planning programs and functions that are consistent with regional and subregional plans, programs, and requirements; and 2) Forward to the Commission for final action. Budget and Implementation Committee August 23, 2021 Page 4 7. FISCAL YEAR 2021/22 STATE OF GOOD REPAIR PROGRAM ALLOCATIONS Page 43 Overview This item is for the Committee to: 1) Approve Resolution No. 21-016, “Resolution of the Riverside County Transportation Commission Approving the FY 2021/22 Project List for the California State of Good Repair Program”; 2) Approve an allocation of $4,251,328 related to Fiscal Year 2021/22 State of Good Repair (SGR) program funds to eligible Riverside County transit operators; 3) Authorize staff to allocate increased State Controller Office (SCO) FY 2021/22 revenue estimates up to $425,132, or 10 percent of the current estimate, to eligible Riverside County transit operators; 4) Approve an increase of $46,928 in the FY 2021/22 budget for SGR revenues to reflect updated SCO estimates; 5) Authorize the Executive Director, or designee, to review, approve and submit projects to Caltrans which are consistent with SGR program guidelines and to execute and submit required documents for the SGR program, including the Authorized Agent Form; 6) Authorize the Executive Director, or designee, to approve administrative amendments to the FY 2021/22 Short Range Transit Plans (SRTPs) for incorporation of the SGR funds, as necessary; and 7) Forward to the Commission for final action. 8. FISCAL YEAR 2021-2022 CALTRANS SUSTAINABLE TRANSPORTATION PLANNING GRANT ACCEPTANCE Page 48 Overview This item is for the Committee to: 1) Approve Resolution No. 21-014, “Resolution of the Riverside County Transportation Commission Accepting Funds from the California Department of Transportation Sustainable Transportation Planning Grant Program;” 2) Authorize the Executive Director, or designee, pursuant to legal counsel review, to execute any required documents or amendments to the Fiscal Year (FY) 2021-2022 Sustainable Transportation Planning Grant; and 3) Forward to the Commission for final action. Budget and Implementation Committee August 23, 2021 Page 5 9. REFINANCING OF 91 EXPRESS LANES TOLL DEBT Page 52 Overview This item is for the Committee to: 1) Receive and file the presentation regarding the refinancing of the Commission’s Toll Revenue Senior Lien Bonds, 2013 Series A (2013A Bonds) and 2013 Transportation Infrastructure Financing and Innovation Act (TIFIA) Loan (2013 TIFIA Loan) related to the State Route 91 Corridor Improvement Project (91 Project) with the issuance of taxable and tax-exempt senior lien and second lien toll revenue refunding bonds (2021 Refunding Toll Bonds) and cash defeasance of a portion of the Commission’s Toll Revenue Senior Lien Bonds, 2013 Series B (2013B Bonds); 2) Approve the revised refinancing plan to issue the 2021 Refunding Toll Bonds to refund all or a portion of the 2013A Bonds, currently outstanding in the amount of approximately $123.8 million, and prepay all or a portion of the 2013 TIFIA Loan, currently outstanding in the amount of approximately $508 million; 3) Approve the cash defeasance of a portion of the Commission’s 2013B Bonds, currently outstanding in the amount of approximately $89.7 million, using an amount not to exceed $25 million of RCTC 91 Express Lanes (91 Express Lanes) toll revenues designated as surplus in accordance with the 2013 Toll Revenue Bonds Indenture or other legally available funds of the Commission; 4) Adopt Resolution No. 21-015, “Resolution Authorizing the Issuance and Sale of Not to Exceed $725,000,000 Aggregate Principal Amount of Riverside County Transportation Commission Toll Revenue Refunding Bonds in One or More Series, the Refunding, Defeasance, [and Purchase Through Tender Offer of Outstanding Bonds or Exchange Therefor,] the Execution and Delivery of One or More Supplemental Indentures, One or More Purchase Contracts, One or More Official Statements, One or More Continuing Disclosure Agreements, One or More Escrow Agreements,[ One or More Dealer Manager Agreements, and One or More Invitations to Tender,] and the Taking of All Other Actions Necessary in Connection Therewith”; 5) Approve the proposed form of the Preliminary Official Statement for the issuance of not to exceed $725 million in 2021 Refunding Toll Bonds and authorize the Executive Director to approve and execute the printing and distribution of the final form of the Official Statement; 6) Ratify, confirm, and approve the proposed form of the Continuing Disclosure Agreement related to the 2021 Refunding Toll Bonds, by and between the Riverside County Transportation Commission and Digital Assurance Certification, L.L.C., as dissemination agent, and authorize the Executive Director to approve and execute the final form of the Continuing Disclosure Agreement; Budget and Implementation Committee August 23, 2021 Page 6 7) Ratify, confirm, and approve the proposed forms of the Third Supplemental Indenture and Fourth Supplemental Indenture for the 2021 Refunding Toll Bonds, each by and between the Riverside County Transportation Commission and U.S. Bank National Association (US Bank), as Trustee, and authorize the Executive Director to approve and execute the final forms of the Third Supplemental Indenture and Fourth Supplemental Indenture; 8) Ratify, confirm, and approve the proposed form of the Bond Purchase Agreement(s), also referred to as Purchase Contract(s), between the Riverside County Transportation Commission and Bank of America Securities, Inc. (BofA), as Underwriter Representative acting on behalf of itself and Goldman, Sachs & Co. (Goldman), Wells Fargo Securities (Wells Fargo), J.P. Morgan (JPM), and Siebert Cisneros Shank & Co., LLC (Siebert), (collectively the Underwriters), for the 2021 Refunding Toll Bonds and authorize the Chief Financial Officer to approve and execute the final form of the Bond Purchase Agreement; 9) Ratify, confirm, and approve the proposed form of the Escrow Agreement for the 2013A Bonds and the proposed form of the Escrow Agreement for the 2013B Bonds, each by and between the Commission and US Bank, as Escrow Agent, and authorize the Executive Director to approve and execute the final Escrow Agreement; 10) Approve the estimated costs of issuance, including estimated underwriter’s discount, of $4,500,820 to be paid from the proceeds of the 2021 Refunding Toll Bonds; 11) Approve Agreement No. 05-19-510-18, Amendment No. 18 to Agreement No. 05-19-510-00, with Orrick, Herrington, & Sutcliffe LLP (Orrick) for bond counsel services related to the issuance of the 2021 Refunding Toll Bonds for an additional amount of $45,000 and a total amount not to exceed $3,375,000; 12) Approve adjustments to the Fiscal Year 2021/22 budget in the amounts of $9.8 million to increase bond proceeds and $25 million to increase debt service expenditures for the cash defeasance of a portion of the 2013B Bonds using 91 Express Lanes toll revenues designated as surplus; and 13) Forward to the Commission for final action. 10. STATE AND FEDERAL LEGISLATIVE UPDATE Page 63 Overview This item is for the Committee to: 1) Receive and file an update on state and federal legislation; and 2) Forward to the Commission for final action. Budget and Implementation Committee August 23, 2021 Page 7 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., September 27, 2021. AGENDA ITEM 6A MINUTES RIVERSIDE COUNTY TRANSPORTATION COMMISSION BUDGET AND IMPLEMENTATION COMMITTEE Monday, June 28, 2021 MINUTES 1.CALL TO ORDER The meeting of the Budget and Implementation Committee was called to order by Chair Lloyd White at 9:30 a.m. via Zoom Meeting ID: 837 6451 6749, pursuant to Governor Newsom’s Executive Order N-29-20. 2.ROLL CALL Members/Alternates Present Members Absent Denise Delgado* Ben J. Benoit Chuck Conder* Alonso Ledezma Raymond Gregory Kyle Pingree Jan Harnik Bob Magee Scott Matas Lisa Middleton* Linda Molina Jeremy Smith Karen Spiegel Chuck Washington Lloyd White *Arrived after the meeting was called to order. 3.PLEDGE OF ALLEGIANCE Chair White led the Budget and Implementation Committee in a flag salute. At this time, Commissioners Chuck Conder, Denise Delgado, and Lisa Middleton joined the meeting. 4.PUBLIC COMMENTS There were no requests to speak from the public. 1 RCTC Budget and Implementation Committee Minutes June 28, 2021 Page 2 5. ADDITIONS / REVISIONS There were no additions or revisions to 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. M/S/C (Molina/Spiegel) to approve the following Consent Calendar item(s): 6A. APPROVAL OF MINUTES – MAY 24, 2021 7. STATE AND FEDERAL LEGISLATIVE UPDATE David Knudsen, Interim External Affairs Director, presented an update for the state and federal legislative activities. M/S/C to: 1) Receive and file an update on state and federal legislation; and 2) Forward to the Commission for final action. 8. 2022 STATE TRANSPORTATION IMPROVEMENT PROGRAM FUNDING DISTRIBUTION AND DRAFT FUND ESTIMATE Jillian Guizado, Planning and Programming Director, presented the 2022 State Transportation Improvement Program (STIP), highlighting the following: • 2022 STIP; past STIP cycles: Measure A Taxable Sales by geographic areas; intracounty formula distribution; and next steps M/S/C (Gregory/Harnik) to: 1) Approve the 2022 State Transportation Improvement Program (STIP) funding distribution among the three geographic areas in Riverside County per the adopted STIP intracounty Memorandum of Understanding (MOU); and 2) Forward to the Commission for final action. 9. COUNTYWIDE TRANSIT REPORT: FISCAL YEARS 2017/18 THROUGH 2019/20 Lorelle Moe-Luna, Multimodal Services Director, presented the Countywide Transit Report for FYs 2017/18 through 2019/20, highlighting the following areas: 2 RCTC Budget and Implementation Committee Minutes June 28, 2021 Page 3 • Purpose; service overview; how much does it cost to operate transit service in Riverside County; how are we paying for it; how is farebox recovery • Major trends-annual passenger boardings and percent change from prior year, and looking ahead Commissioner Lisa Middleton stated in looking at the single occupancy vehicle chart for trips eliminated in the attached report she was a bit surprised that in FY 2019/20 there were fewer trips eliminated then in FY 2018/19 and asked where this data comes from and what is it telling them. Lorelle Moe-Luna replied the main reason for that was because in FY 2018/19 the Vanpool Program started in the last few months of the fiscal year so there is only two months of data. She stated as far as how the data is calculated, she asked Brian Cunanan, Commuter & Motorist Assistance Manager to respond to that. Brian Cunanan replied for the Vanpool Program each of the vanpools have to record and report how many riders they have in the program, so it is real data that they receive from each of the vanpools and then they translate that data into the trips reduced, vehicles miles traveled reduced, and greenhouse gases reduced. In response Commissioner Middleton’s clarification if there are three people in the vanpool then that is two trips that have been eliminated, Brian Cunanan replied that is correct. Commissioner Middleton stated this is not really telling them how many fewer rides there are just how many people are getting into the vanpool. M/S/C to: 1) Receive and file the Countywide Transit Report for Fiscal Year 2017/18 through FY 2019/20; and 2) Forward to the Commission for final action. 10. FISCAL YEAR 2021/22 COMMUTER ASSISTANCE PROGRAM RECOMMENDATIONS Brian Cunanan stated that the Freeway Service Patrol in Riverside County turns 28 today. He then presented the FY 2021/22 Commuter Assistance Program (CAP) recommendations, highlighting the following: • CAP benefits and objectives, regional commute patterns, centralized ridesharing database - Phase 1 and Phase 2, regional recommendation agreements • Promote rideshare countywide, countywide CAP recommendation, strengthen rideshare incentives to promote participation countywide, and enhance incentive eligibility to promote vanpool participation 3 RCTC Budget and Implementation Committee Minutes June 28, 2021 Page 4 Commissioner Chuck Conder expressed appreciation for the update and asked if the data bases track age groups of those that do commute in the vanpools. Brian Cunanan replied they do not, but there was a time when they had that as a voluntary question, but not a lot of people wanted to participate and offer that information. Commissioner Jan Harnik expressed appreciation for a great presentation and for all the consideration that the Eastern Riverside County has received as this is so promising for the Coachella Valley and throughout Riverside County. She explained this is a perfect example when talking about congestion and how they say that they cannot build their way out of it, this is one of those programs that reflects a shift in thinking that will help get them where they need to go. She supports it and at this time she moved the motion. Chair White expressed appreciation for a great presentation as there was a lot of good information and asked for clarification on the rideshare incentive. Brian Cunanan replied it is a start up incentive and participants would receive $5.00 a day for everyday that they report into rideshare within a three-month period up to that new max that would be established at $125.00. They have an employer validate it and they are distributed via a gift card, and they have a choice between Target, Stater Bros., and Amazon. M/S/C (Harnik/Washington) to: 1) Approve Agreement No. 21-41-123-00 among the Riverside County Transportation Commission (Commission), San Bernardino County Transportation Authority (SBCTA), Los Angeles County Metropolitan Transportation Authority (LACMTA), Orange County Transportation Authority (OCTA), and Ventura County Transportation Commission (VCTC), for a total contract amount of $977,719 for Regional Rideshare Software over a three-year term, including the Commission’s total share of $186,444 inclusive of $18,000 in contingency; 2) Approve Agreement No. 20-41-090-01, Amendment No. 1 to Agreement No. 20-41-090-00, with SBCTA for Rideshare Program Implementation, removing Rideshare and Vanpool Software expenses from the Scope of Work and incorporating them into Agreement No. 21-41-123-00; 3) Approve Memorandum of Understanding No. 21-41-122-00 between LACMTA, OCTA, RCTC, SBCTA, and VCTC to merge and consolidate the agencies’ rideshare databases; 4) Adopt Resolution No. 21-013, “Resolution of the Riverside County Transportation Commission Adopting Amended Guidelines for the Administration of the Measure A Funded Commuter Incentive Projects as Part of Its Commuter Assistance Program”; 4 RCTC Budget and Implementation Committee Minutes June 28, 2021 Page 5 5) Authorize the Chair or Executive Director, pursuant to legal counsel review, to finalize and execute the agreements on behalf of the Commission; and 6) Forward to the Commission for final action. 11. ITEM(S) PULLED FROM CONSENT CALENDAR AGENDA There were no items pulled from the consent calendar. 12. COMMISSIONERS / EXECUTIVE DIRECTOR REPORT 12A. Commissioner Middleton announced AB 43 passed out of the assembly with only two no votes. This is the bill that would substantially change the way speed limits are set in California. That bill is garnering some substantial opposition at the State Senate, it will be heard at the Senate Transportation Committee on July 13. It is an unusual combination of forces the Police Officers Research Association and the California Association of Highway Patrolman are proposed to making changes how speed limits are set. They have been joined by the ACLU in Western Center on Law & Poverty, which are concerned that any additional changes in a way that speed limits are set would result in greater traffic enforcement. The belief there is that greater traffic enforcement will be just proportionately levied against individuals of color. Commissioner Middleton suggested that the Commissioners reach out to their State Senator and to others regarding this bill. 12B. Commissioner Chuck Washington announced there was a briefing this morning with the State Association of Riverside Counties officers that AB 339 is proposing some adjustments or amendments to the requirements for Brown Act meetings. He would encourage any city council members or anyone that has connection with other agencies that operate under the Brown Act to review the proposed legislation as it mandates certain requirements for cities or counties over 250,000 residents. The cities that are under the 250,000 population needs to look at what requirements they want to implement with their agency. In response to Commissioner Harnik question, Commissioner Washington replied AB 339. 5 RCTC Budget and Implementation Committee Minutes June 28, 2021 Page 6 13. ADJOURNMENT There being no further business for consideration by the Budget and Implementation Committee, the meeting was adjourned at 10:10 a.m. Respectfully submitted, Lisa Mobley Clerk of the Board 6 AGENDA ITEM 6B Agenda Item 6B RIVERSIDE COUNTY TRANSPORTATION COMMISSION DATE: August 23, 2021 TO: Budget and Implementation Committee FROM: Michele Cisneros, Deputy Director of Finance THROUGH: Theresia Trevino, Chief Financial Officer SUBJECT: Quarterly Sales Tax Analysis STAFF RECOMMENDATION: This item is for the Committee to: 1) Receive and file the sales tax analysis for Quarter 1, 2021 (1Q 2021); and 2) Forward to the Commission for final action. BACKGROUND INFORMATION: At its December 2007 meeting, the Commission awarded an agreement with MuniServices, LLC (MuniServices), an Avenu Company, for quarterly sales tax reporting services plus additional fees contingent on additional sales tax revenues generated from the transactions and use tax (sales tax) audit services. As part of the recurring contracts process in June 2018, the Commission approved a five-year extension through June 30, 2023. The services performed under this agreement pertain to only the Measure A sales tax revenues. Since the commencement of these services, MuniServices submitted audits, which reported findings and submitted to the California Department of Tax and Fee Administration (CDTFA), for review and determination of errors in sales tax reporting related to 1,366 businesses. Through 4Q 2020, the CDTFA approved $12,932,405 of cumulative sales tax revenues recovered for the Commission. If CDTFA concurs with the error(s) for the remaining claims, the Commission will receive additional revenues; however, the magnitude of the value of the remaining findings was not available. It is important to note that while the recoveries of additional revenues will be tangible, it will not be sufficient to alter the overall trend of sales tax revenues. MuniServices provided the Commission with the Quarterly Sales Tax Digest Summary report for 1Q 2021. Most of the 1Q 2021 Measure A sales tax revenues were received in the second quarter of calendar year 2021, during April 2021 through June 2021, due to a lag in the sales tax calendar. The summary section of the 1Q 2021 report is attached and includes an overview of California’s economic outlook, local results, historical cash collections analysis by quarter, top 25 sales/use tax contributors, historical sales tax amounts, annual sales tax by business category, and five- year economic trend (general retail). 7 Agenda Item 6B Taxable transactions for the top 25 contributors in Riverside County generated 28.3 percent of taxable sales for the benchmark year ended 1Q 2021, slightly higher than the 25.5 percent for the benchmark year ended 1Q 2020. The top 100 tax contributors generated 43 percent for the benchmark year ended 1Q 2021, slightly higher than the 39.6 percent for the benchmark year ended 1Q 2020. In the Economic Category Analysis below, five of the six categories experienced new highs in the 1Q 2021 benchmark year compared to the prior eight benchmark years. The food products category was down due to a warehouse club chain, included under general retail category, shifting food sales from grocery retailers. The transportation category reflects a new high from the 4Q 2020 benchmark quarter and is a result of an increase in new auto sales and fuel sales due to the lifting of “stay at home” orders and an increase in vaccination rates allowing more travel within the state. An analysis of sales tax performance through 1Q 2021 is attached and illustrates fairly consistent cycles for sales tax performance for most of the economic categories since 1Q 2016 – with the exception of COVID-19 impacts in 1Q 2021 for some categories. For six of the top 10 segments (miscellaneous – retail, auto sales – new, department stores, building materials – wholesale, building materials – retail, and heavy industry) during the past eight benchmark year quarters, sales tax receipts reached a new high point in 1Q 2021. The segments represent 49.2 percent of the total sales tax receipts. The service stations segment representing 5.3 percent was lower than the last seven benchmark year quarters since the high in 1Q 2014. The restaurants, food markets, and apparel stores are lower than the 1Q 2020 benchmark year quarter due to a warehouse chain, included under department stores, shifting food sales from grocery retailers and impacts of the COVID-19 pandemic. The top 10 segments represent 71.6 percent of total sales tax receipts. For the other 21 segments representing 28.4 percent of total sales tax receipts, 14 segments representing 19.4 percent of the total sales tax receipts reached new high points in the benchmark year 1Q 2021. In the Economic Segment Analysis below, auto sales – new has been in the top economic segments beginning in 2014. Restaurants had been in the top economic segments since 2014 but was % of Total / % Change RCTC State Wide Orange County Riverside County S.F. Bay Area Sacramento Valley Central Valley South Coast North Coast Central Coast General Retail 32.0 / 19.0 27.6 / -14.7 25.5 / -21.1 29.4 / 4.8 26.1 / -15.7 26.2 / 0.7 36.6 / 18.3 26.4 / -17.0 29.5 / 4.2 25.9 / -23.8 Food Products 14.5 / -10.8 18.1 / -29.9 18.3 / -27.0 17.7 / -10.6 17.2 / -37.1 15.3 / -14.5 13.8 / -17.4 20.0 / -26.8 17.6 / -34.9 28.0 / -32.5 Transportation 22.7 / 4.9 23.6 / -16.5 25.0 / -9.5 25.1 / 1.3 21.0 / -18.3 28.1 / -1.8 21.5 / -17.8 24.1 / -10.9 27.2 / -0.4 24.8 / -8.1 Construction 11.4 / 16.1 11.7 / -2.6 10.5 / 5.7 15.0 / 14.2 11.9 / -4.4 14.1 / 7.9 11.6 / 0.7 10.7 / 3.9 15.8 / 10.8 11.1 / 12.2 Business to Business 15.8 / 5.1 17.9 / -15.6 19.4 / -13.7 12.0 / 2.2 22.7 / -6.2 15.2 / -5.1 15.6 / -13.0 17.7 / -13.4 9.1 / -4.9 9.4 / -25.3 Miscellaneous 3.6 / 20.4 1.1 / -23.7 1.3 / -15.6 0.8 / -1.2 1.2 / -28.2 1.2 / -11.1 0.8 / -5.4 1.1 / -6.4 0.7 / -22.1 0.8 / -35.1 Total 100.0 / 8.0 100.0 / -17.4 100.0 / -15.9 100.0 / 1.7 100.0 / -18.2 100.0 / -2.8 100.0 / -4.0 100.0 / -15.3 100.0 / -7.0 100.0 / -20.7 General Retail: Apparel Stores, Department Stores, Furniture/Appliances, Drug Stores, Recreation Products, Florist/Nursery, and Misc. Retail Food Products: Restaurants, Food Markets, Liquor Stores, and Food Processing Equipment Construction: Building Materials Retail and Building Materials Wholesale Transportation: Auto Parts/Repair, Auto Sales - New, Auto Sales - Used, Service Stations, and Misc. Vehicle Sales Business to Business: Office Equip., Electronic Equip., Business Services, Energy Sales, Chemical Products, Heavy Industry, Light Industry, Leasing, Biotechnology, I.T. Infrastructure, and Green Energy Miscellaneous: Health & Government, Miscellaneous Other, and Closed Account Adjustments ECONOMIC CATEGORY ANALYSIS 8 Agenda Item 6B replaced by miscellaneous – retail beginning in the 3Q 2020 benchmark year. Miscellaneous – retail includes online retailers and has been a large contributor to sales/use tax in Riverside County during the Covid-19 pandemic. Information regarding sales tax comparison by city and change in economic segments (two highest gains and two highest losses) 1Q 2021 to 1Q 2020 is attached. In early March 2020, the federal government as well as the California Governor issues 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. COVID-19 and the related “stay at home” orders have negatively impacted the local, regional, state, and federal economies; the magnitude and duration of these impacts is uncertain. Additionally, the Governor issued an executive order to allow businesses with under $1 million in tax liability to delay their first quarter sales and use tax filings until the end of July 2020. Another state program allows small businesses to defer up to $50,000 of their sales and use tax liabilities for the first and second quarters until July 31, 2021, provided that the owed amount is paid in 12 equal installments over the following year. The sales taxes due to RCTC are not waived but may be delayed. Staff will monitor sales tax receipts and other available economic data to determine the need for any adjustments to the revenue projections. Staff will utilize the forecast scenarios with the complete report and receipt trends in assessing such projections. Attachments: 1) Sales Tax Digest Summary 1Q 2021 2) Sales Tax Performance Analysis by Quarter 1Q 2021 3) Quarterly Sales Tax Comparison by City for 1Q 2021 to 1Q 2020 RCTC State Wide Orange County Riverside County S.F. Bay Area Sacramento Valley Central Valley South Coast North Coast Central Coast Largest Segment Miscellaneous Retail Auto Sales - New Auto Sales - New Auto Sales - New Auto Sales - New Auto Sales - New Department Stores Auto Sales - New Department Stores Restaurants % of Total / % Change 12.7 / 45.4 12.1 / -2.8 14.4 / 1.9 12.2 / 13.7 11.9 / -6.5 12.9 / 11.2 12.0 / -4.4 12.9 / 4.2 12.0 / 5.7 17.2 / -42.1 2nd Largest Segment Auto Sales - New Restaurants Restaurants Department Stores Restaurants Department Stores Furniture/ Appliance Restaurants Auto Sales - New Auto Sales - New % of Total / % Change 11.2 / 17.3 11.3 / -38.3 11.8 / -35.0 10.7 / 3.3 10.3 / -47.3 10.3 / -3.3 10.1 / 64.1 12.9 / -35.6 11.9 / 15.7 15.1 / 11.4 3rd Largest Segment Department Stores Department Stores Department Stores Restaurants Miscellaneous Retail Restaurants Miscellaneous Retail Department Stores Restaurants Food Markets % of Total / % Change 9.9 / 7.0 9.0 / -15.5 9.1 / -13.7 10.1 / -16.9 10.0 / 7.9 9.3 / -22.2 8.7 / 52.2 8.8 / -12.0 11.2 / -46.7 8.6 / -10.8 ECONOMIC SEGMENT ANALYSIS 9 Riverside County Transportation Commission Sales Tax Digest Summary Collections through May 2021 Sales through March 2021 (2021Q1) www.avenuinsights.com (800)800‐8181 Page 1 CALIFORNIA’S ECONOMIC OUTLOOK  California sales tax receipts increased by 33.3% over the same quarter from the previous year, with  Northern California reporting a 32.2% decrease compared to a 34.1% decrease for Southern California.  Receipts for the RCTC increased by 47.3% over the same periods.   Real Gross Domestic Product (GDP) increased at an annual rate of 6.4% in the first quarter of 2021,  reflecting the increasing pace of economic recovery, reopening of establishments, and continued  government stimulus response related to the COVID‐19 pandemic.   (Bureau of Economic Analysis, April 2021)  The U.S. unemployment rate fell from 6.3% in January to 6.2% in February of 2021, remaining 2.7%  higher than a year ago. There were 4.2 million fewer Americans in the labor force in February of 2021  than in February of 2020. California’s unemployment rate decreased to 9.0% in January, down from  9.3% in December, but 4.7% higher than February 2020’s pre‐pandemic rate of 4.3%.   (California Department of Finance Bulletin, March 2021)  LOCAL RESULTS  Net Cash Receipts Analysis  Local Collections $59,486,614  Less: Cost of Administration $(369,780)  Net 1Q2021 Receipts $59,116,834  Net 1Q2020 Receipts $40,138,015  Actual Percentage Change 47.3%  Business Activity Performance Analysis  Local Collections – Economic Basis 1Q2021 $57,480,436  Local Collections – Economic Basis 1Q2020 $47,756,618  Quarter over Quarter Change $9,723,818  Quarter over Quarter Percentage Change 20.4%  Avenu Insights & Analytics’ On‐Going Audit Results  Total Recovered Since Inception $12,932,405  ATTACHMENT 1 10 RCTC www.avenuinsights.com (800) 800‐8181 Page 2  $‐  $100  $200  $300  $400  $500  $600  $‐  $10,000  $20,000  $30,000  $40,000  $50,000  $60,000  $70,000 4Q2018 1Q2019 2Q2019 3Q2019 4Q2019 1Q2020 2Q2020 3Q2020 4Q2020 1Q2021 (in thousands  of $) Net  Receipts CDTFA Admin Fees Due HISTORICAL CASH COLLECTIONS ANALYSIS BY QUARTER                                              TOP 25 SALES/USE TAX CONTRIBUTORS  The following list identifies RCTC’s Top 25 Sales/Use Tax contributors. The list is in alphabetical order  and represents sales from April 2020 to March of 2021. The Top 25 Sales/Use Tax contributors generate  28.3% of RCTC’s total sales and use tax revenue.  AMAZON.COM ‐ EC KOHL'S DEPARTMENT STORES  AMAZON.COM SERVICES – EC LOWE’S HOME CENTERS  APPLE STORES MCDONALD'S RESTAURANTS  ARCO AM/PM MINI MARTS RALPH'S GROCERY COMPANY  BEST BUY STORES ROSS STORES  BEST BUY STORES.COM – EC SAM'S CLUB  CARMAX THE AUTO SUPERSTORE SHELL SERVICE STATIONS  CHEVRON SERVICE STATIONS STATER BROS MARKETS  CIRCLE K FOOD STORES TARGET STORES  COSTCO WHOLESALE TESLA  DEPARTMENT OF MOTOR VEHICLES VERIZON WIRELESS  EBAY – EC WAL MART STORES  HOME DEPOT         11 RCTC www.avenuinsights.com (800) 800‐8181 Page 3 $0 $5,000 $10,000 $15,000 $20,000 $25,000 $30,000 1Q2021 High Low 52,853  52,958  53,930  54,868  57,229  57,956  58,006  61,230  65,413  69,996  34,577  34,697  35,076  35,301  35,578  34,974  32,503  32,002  31,473  31,654  47,201  47,051  47,355  47,135  47,647  47,275  45,537  46,129  46,436  49,499  20,669  20,724  20,971  21,166  21,084  21,528  21,876  22,520  23,863  24,964  31,111  31,275  31,697  32,419  32,411  32,658  32,267  32,475  32,766  34,493  5,883  5,954  6,162  6,524  6,862  7,251  7,438  8,204  7,211  $ 0$ 20,000 $ 40,000 $ 60,000 $ 80,000 $ 100,000 $ 120,000 $ 140,000 $ 160,000 $ 180,000 $ 200,000 4Q2018 1Q2019 2Q2019 3Q2019 4Q2019 1Q2020 2Q2020 3Q2020 4Q2020 1Q2021 (in thousands of  $) General Retail Food  Products Transportation Construction Business To  Business Miscellaneous 7,947 HISTORICAL SALES TAX AMOUNTS                                            ANNUAL SALES TAX BY BUSINESS CATEGORY                                    The following chart shows the sales tax level from annual sales through March of 2021, the highs,  and the lows for the top ten segments over the last two years in thousands of $.  12 RCTC www.avenuinsights.com (800) 800‐8181 Page 4 $0 $5,000 $10,000 $15,000 $20,000 $25,000 2Q 2 0 1 6 3Q 2 0 1 6 4Q 2 0 1 6 1Q 2 0 1 7 2Q 2 0 1 7 3Q 2 0 1 7 4Q 2 0 1 7 1Q 2 0 1 8 2Q 2 0 1 8 3Q 2 0 1 8 4Q 2 0 1 8 1Q 2 0 1 9 2Q 2 0 1 9 3Q 2 0 1 9 4Q 2 0 1 9 1Q 2 0 2 0 2Q 2 0 2 0 3Q 2 0 2 0 4Q 2 0 2 0 1Q 2 0 2 1 (in thousands  of  $) FIVE‐YEAR ECONOMIC TREND: General Retail        13 RCTC:  Sales Tax Performance Analysis by Quarter TOTAL Economic TOTAL 2021Q1 QoQ %∆QoQ $∆YoY %∆YoY $∆ $57,480,436 20.4% $9,723,818 8.2% $16,542,955 GENERAL RETAIL 2021Q1 QoQ %∆QoQ $∆YoY %∆YoY $∆ $17,981,904 31.1% $4,270,205 19.0% $11,187,961 31.3% FOOD PRODUCTS 2021Q1 QoQ %∆QoQ $∆YoY %∆YoY $∆ $8,711,391 0.0% $3,613 ‐10.8%‐$3,833,204 % of Total: 15.2% TRANSPORTATION 2021Q1 QoQ %∆QoQ $∆YoY %∆YoY $∆ $13,620,741 26.9% $2,887,340 4.9% $2,307,861 % of Total: 23.7% CONSTRUCTION 2021Q1 QoQ %∆QoQ $∆YoY %∆YoY $∆ $6,152,363 19.3% $993,236 16.1% $3,454,517 % of Total: 10.7% BUSINESS TO BUSINESS 2021Q1 QoQ %∆QoQ $∆YoY %∆YoY $∆ $8,761,987 11.0% $864,797 5.1% $1,666,207 % of Total: 15.2% Q2 Q3 Q4 Q1 TOTAL CATEGORY % of 2021Q1 Total: QoQ = 21Q1 / 20Q1 YoY = YE 21Q1 / YE 20Q1 $0 $5,000,000 $10,000,000 $15,000,000 $20,000,000 $25,000,000 $0 $10,000,000 $20,000,000 $30,000,000 $40,000,000 $50,000,000 $60,000,000 $70,000,000 Avenu Insights & Analytics ATTACHMENT 2 14 RCTC: Quarterly Comparison of 2020Q1 and 2021Q1 (January through March Sales) Ge n e r a l  Re t a i l Fo o d  Pr o d u c t s Tr a n s p o r t a t i o n Co n s t r u c t i o n Bu s i n e s s  To  Bu s Mi s c e l l a n e o u s Jan ‐ Mar 2021  (2021Q1) Jan ‐ Mar 2020  (2020Q1)% Chg Gain Gain Decline Decline BANNING 49.4% 3.4% 25.7%‐15.8% 19.9%‐17.5%675,541 558,057 21.1%Auto Sales ‐ New Misc. Vehicle Sales Bldg.Matls‐Whsle Food Markets BEAUMONT 20.4% 27.8% 17.1% 11.0%‐14.4% 185.4%1,363,259 1,172,982 16.2%Restaurants Department Stores Business Services Energy Sales BLYTHE 16.0%‐8.8% 13.3% 10.5%‐0.1%‐1.6%389,852 369,207 5.6%Auto Sales ‐ New Miscellaneous Retail Restaurants Food Markets CALIMESA 14.8% 24.3% 3.3% 59.5%‐46.9%‐8.1%222,969 198,684 12.2%Food Markets Miscellaneous Retail Office Equipment Light Industry CANYON LAKE 46.3% 17.7% 227.8%‐19.2%‐72.9% 45.2%92,348 57,156 61.6%Auto Parts/Repair Restaurants Leasing Auto Sales ‐ Used CATHEDRAL CITY 15.1%‐8.2% 36.5% 4.5%‐3.9%‐9.3%2,469,519 2,042,042 20.9%Auto Sales ‐ New Misc. Vehicle Sales Restaurants Food Markets COACHELLA 13.7% 10.5% 7.7% 256.0%‐5.1%‐21.2%907,646 811,535 11.8%Bldg.Matls‐Whsle Restaurants Heavy Industry Light Industry CORONA 15.2% 8.6% 8.4% 4.7%‐1.4%‐29.1%9,286,515 8,720,627 6.5%Auto Sales ‐ New Bldg.Matls‐Whsle Service Stations Miscellaneous Other COUNTY OF RIVERSIDE 53.1% 7.1% 6.4% 17.3%‐38.0%‐63.7%7,505,196 6,814,614 10.1%Miscellaneous Retail Bldg.Matls‐Whsle Leasing Heavy Industry DESERT HOT SPRINGS 22.5% 2.3% 2.7%‐3.1% 50.0%‐44.8%418,124 392,323 6.6%Drug Stores Miscellaneous Retail Miscellaneous Other Service Stations EASTVALE 1061.9% 5.7% 27.4% 14.1%‐15.1% 5.2%9,088,734 2,033,285 347.0%Miscellaneous Retail Bldg.Matls‐Whsle Business Services Heavy Industry HEMET 25.8% 16.4% 42.0% 18.8% 32.3% 13.2%3,413,272 2,613,642 30.6%Auto Sales ‐ New Restaurants Service Stations Heavy Industry INDIAN WELLS ‐22.9%‐66.6% 0.0% 135.5%‐83.4% 55.7%163,237 299,950 ‐45.6%Bldg.Matls‐Whsle Health & Government Restaurants Miscellaneous Retail INDIO 14.8% 4.4% 25.2% 7.8%‐9.3%‐36.4%2,859,409 2,553,447 12.0%Auto Sales ‐ New Apparel Stores Heavy Industry Auto Sales ‐ Used JURUPA VALLEY 53.2% 9.1%‐5.7% 18.5% 1.7%‐2.5%4,058,778 3,522,602 15.2%Department Stores Miscellaneous Retail Auto Parts/Repair Electronic Equipment LA QUINTA 11.3%‐22.7% 15.7% 11.7% 29.4% 53.2%2,239,610 2,196,238 2.0%Department Stores Furniture/Appliance Restaurants Food Markets LAKE ELSINORE 36.3% 18.8% 39.6% 11.2% 38.1% 17.0%2,827,909 2,160,610 30.9%Auto Sales ‐ New Drug Stores Service Stations Heavy Industry MENIFEE 34.7% 12.3% 20.3% 37.8%‐20.5% 30.2%2,130,491 1,764,246 20.8%Bldg.Matls‐Retail Department Stores Heavy Industry Light Industry MORENO VALLEY 163.0% 11.8% 20.3% 11.0% 46.7% 799.0%6,691,018 4,236,813 57.9%Miscellaneous Retail Auto Sales ‐ New Auto Sales ‐ Used Service Stations MURRIETA 38.9% 13.2% 29.3% 22.2% 23.1%‐4.0%4,776,508 3,744,020 27.6%Apparel Stores Auto Sales ‐ Used Service Stations Heavy Industry NORCO 17.6% 10.6% 32.3%‐0.9%‐4.4%‐4.0%1,777,567 1,474,586 20.5%Auto Sales ‐ Used Auto Sales ‐ New Recreation Products Light Industry PALM DESERT 2.9%‐24.1%‐7.7% 15.6%‐10.0%‐1.0%4,420,707 4,606,803 ‐4.0%Department Stores Auto Sales ‐ Used Restaurants Auto Sales ‐ New PALM SPRINGS 8.3%‐23.2% 24.6% 1.0%‐26.8%‐45.5%3,203,496 3,435,814 ‐6.8%Auto Sales ‐ New Bldg.Matls‐Retail Restaurants Leasing PERRIS ‐37.8% 21.5% 13.5% 17.2% 84.3% 8.4%4,887,324 5,252,727 ‐7.0%Business Services Bldg.Matls‐Retail Miscellaneous Retail Service Stations RANCHO MIRAGE 3.8%‐36.9% 17.7%‐1.4%‐14.7% 20.4%1,217,999 1,359,762 ‐10.4%Furniture/Appliance Auto Sales ‐ New Restaurants Miscellaneous Retail RIVERSIDE 20.8% 4.0% 25.3% 17.8%‐3.1%‐8.6%15,191,966 13,286,786 14.3%Auto Sales ‐ New Department Stores Leasing Electronic Equipment SAN JACINTO 23.9% 7.7%‐4.6% 18.7% 3.7%‐7.3%729,473 661,865 10.2%Department Stores Restaurants Service Stations Food Markets TEMECULA 6.1% 6.0% 33.0% 10.0%‐1.7% 24.5%8,171,807 7,253,011 12.7%Auto Sales ‐ New Miscellaneous Retail Department Stores Light Industry WILDOMAR 8.7% 13.4%‐4.0% 35.4% 190.9%‐49.2%463,338 409,437 13.2%Office Equipment Restaurants Service Stations Florist/Nursery RIVERSIDE COUNTY Non‐Confidential MuniServices / Avenu Insights & Analytics ATTACHMENT 3 15 AGENDA ITEM 6C Agenda Item 6C RIVERSIDE COUNTY TRANSPORTATION COMMISSION DATE: August 23, 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 fourth quarter ended June 30, 2021; and 2) Forward to the Commission for final action. BACKGROUND INFORMATION: Certain contracts are executed under single signature authority as permitted in the Riverside County Transportation Commission and Western Riverside County Regional Conservation Authority 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 fourth quarter ended June 30, 2021, under the single signature authority granted to the Executive Director. The unused capacity of single signature authority for services at June 30, 2021 is $944,195. Attachment: Single Signature Authority Report as of June 30, 2021 16 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 4,053.40 45,928.60 21-31-023-00 HGN Corona Partners Parking agreement for SR-91 Corridor Operations Project 13,500.00 9,000.00 4,500.00 21-19-041-00 Eadie + Payne Accounting assistance and documenting accounting policies 51,000.00 12,985.00 38,015.00 21-31-033-00 California Highway Patrol Construction Zone Enhancement Program (COZEEP) for Interstate 15/State Route 91 Express Lanes Connector 50,000.00 0.00 50,000.00 21-19-041-01 Eadie + Payne Accounting assistance and documenting accounting policies 50,000.00 0.00 50,000.00 20-18-053-01 Koff and Associates Compensation, Classification and Benefits Studies 100,000.00 18,460.00 81,540.00 21-24-102-00 Super Sweepers Commuter Rail Station Parking Lot and Parking Structure street sweeping services 200,000.00 0.00 200,000.00 19-31-013-01 Psomas ROW Engineering Surveying Services 250,000.00 0.00 250,000.00 21-31-120-00 WSP USA, Inc.French Valley Parkway Phase II Connector Ramp Metering Plans, Specifications & Estimates 249,780.00 0.00 249,780.00 AMOUNT USED 1,055,805.23 1,055,805.23 $944,194.77 None N/A $- $- $- Alicia Johnson Theresia Trevino Prepared by Reviewed by AMOUNT USED SINGLE SIGNATURE AUTHORITY AS OF June 30, 2021 Note: Shaded area represents new contracts listed in the fourth quarter. AMOUNT REMAINING through June 30, 2021 Agreements that fall under Public Utilities Code 130323 (C) V:\2021\09 September\B&I\6C.AJ.A1.SingleSignQ4 17 AGENDA ITEM 6D Agenda Item 6D RIVERSIDE COUNTY TRANSPORTATION COMMISSION DATE: August 23, 2021 TO: Budget and Implementation Committee FROM: Marla Dye, Senior External Affairs Management Analyst THROUGH: Cheryl Donahue, Public Affairs Manager SUBJECT: Quarterly Public Engagement Metrics Report, April – June 2021 STAFF RECOMMENDATION: This item is for the Committee to: 1) Receive and file the Quarterly Public Engagement Metrics Report for April - June 2021; and 2) Forward to the Commission for final action. BACKGROUND INFORMATION: Staff continues to measure public engagement activities and prepare Quarterly Public Engagement Metrics Reports for the Commission, a practice that began in April 2018. This report covers the second quarter of 2021, from April to June. The quarterly reports are a data-driven approach to monitor the Commission’s progress toward public engagement goals, to analyze the effectiveness of its efforts, and to provide transparency into how the Commission is using its resources to engage with the public. This quarter’s report includes six sets of data: 1) Metrics for RCTC’s overall public engagement activities, including website use and access; website top pages visited; email notifications; social media likes, engagement, and reach; and public sentiment 2) Metrics for the Route 60 Truck Lanes Project including email activity, website sessions, and social media 3) Metrics for the I-15 Railroad Canyon Interchange Project including email activity, website sessions, text messages, and social media 4) Metrics for the I-215 Placentia Avenue Interchange Project including email activity, website sessions, and social media 5) Metrics for the 91 Corridor Operations Project including email activity, website sessions, and social media 6) Metrics for RCTC’s 15/91 Express Lanes Connector Project public engagement activities, including email activity, website sessions, and social media. This report is new for this quarter and replaces the metrics for the 15 Express Lanes, which opened in April. 18 Agenda Item 6D Report highlights for this quarter follow and are included in a graphical format. The metrics showed small increases across platforms and mixed sentiment. RCTC Overall Public Engagement 1) Website a. For the quarter, there were 40,329 website sessions, a 2.7% increase from last quarter’s 39,243 sessions. There also were 28,653 unique users, a growth of 1.9% compared to the previous quarter’s 28,114 unique users. b. Most visitors (45.8%) used organic search engines to reach the website, while 28.9% accessed the site using a direct search (keying in rctc.org). Others accessed via social media (14.5%), and website referrals (7.8%). c. Website access via desktop versus mobile device changed from the previous quarter. Visits were 54% mobile and 46% desktop. During the previous quarter, the ratio was 60/40. d. The homepage continues to be the most frequently visited page, followed by the Coachella Valley Rail Project page, 15/91 Express Lanes Connector Project page, and the Meetings and Agendas page. 2) Social Media a. Facebook: At the end of the quarter, the Facebook page had 9,903 likes, a 1% increase over last quarter’s 9,825 likes. The page had 2,200 forms of engagement, such as likes, comments and shares, an 84% decline from last quarter’s 13,401 forms of engagement. Facebook also had 2,325,699 impressions. This was a small decrease – 2% – from last quarter’s 2,371,229 impressions. b. Twitter: RCTC’s Twitter page showed a 2% increase in followers, from 1,330 to 1,315. Engagement increased by 163%, from 941 to 1,054. Impressions grew by 28% from 36,758 to 47,107. c. Instagram: Instagram followers grew 7%, from 915 to 975. Engagement declined 42%, from 1,051 forms of engagement to 610. Impressions grew by 12% to 14,270, compared to last quarter’s 12,694. d. Overall, public sentiment was positive. Engagement was positive on posts related to the opening of the 15 Express Lanes and the CV Rail project. Negative sentiment was expressed about the Pachappa Underpass Project nightly lane closures near downtown Riverside. 3) RCTC’s The Point: RCTC continues to produce content for its online blog, The Point, and distributes this information and other news via email to subscribers. RCTC’s subscribers stayed the same at 4,014. A quarter of e-newsletter subscribers opened The Point, and 5% clicked on links to learn more. 19 Agenda Item 6D Route 60 Truck Lanes Construction Public Engagement 1) Emails: Total email sign-ups since the project began grew to 339. This is a 2.1% increase over the 332 sign-ups received through the end of last quarter. There also have been a total of 230 email inquiries, a 5.2% increase over the 227 inquiries through the end of last quarter. 2) Website: Total website visits since grew to 21,116, an 8.3% increase from the 19,493 visits through the end of last quarter. 3) Social Media: The project’s Facebook, Twitter, and Instagram accounts all showed significant increases. The Facebook page grew to 1,016 likes from 966 likes last quarter, a 5.2% increase. Twitter increased from 99 followers to 109 followers, a 10%. Instagram followers grew 6.6% from 331 to 353. I-15 Railroad Canyon Interchange Public Engagement 1) Emails and Texts: Total email sign-ups since the project began grew to 275. This is a 7.4% increase over the 256 sign-ups received through the end of last quarter. A total of 547 people registered to receive texts, a 13% jump over the 484 sign-ups through the end of last quarter. There were 4 email inquiries for a total of 19 since the project started. 2) Website: Total website visits since project inception grew to 11,114, a 14.5% climb from the 9,700 visits through the end of last quarter. 3) Social Media: The project’s social media accounts all showed gains. The Facebook page grew to 971 likes from 946 likes last quarter, a 2.6% increase. Twitter grew by 9.3% from 32 to 35 followers. Instagram followers increased 22.5% from 320 to 392. I-215 Placentia Interchange Public Engagement 1) Emails: Total email sign-ups since the project began grew to 677. This is a 35.6% increase over the 499 sign-ups received through the end of last quarter. There have been 11 email inquiries since the start of construction in August 2020. 2) Website: Total website visits grew to 2,327, a 32.1% increase from the 1,757 visits through the end of last quarter. 3) Social Media: This project does not have a designated social media account. The RCTC social media accounts, @theRCTC, are being used for this project. Total social media post engagements totaled 2,915 for this quarter. 91 Corridor Operations Project Public Engagement 1) Emails: Email sign-ups during the last quarter totaled 2,504. This is a decrease of .9%. Eleven email inquiries were received by the project team. 2) Website: Visits to the rctc.org/91cop webpage grew to 994 from the 552 visits from the last quarter, an 80% increase. 20 Agenda Item 6D 3) Social Media: This project does not have a designated social media account. The RCTC social media accounts, @theRCTC, are being used for this project. Total social media post engagements totaled 499 for this quarter. 15/91 Express Lanes Connector Project Public Engagement 1) Emails: Due to the proximity of this project to the 15 Express Lanes, the project team transferred the email addresses from the 15 Express Lanes Project to the 15/91 Express Lanes Connector Project. The email addresses totaled 2,825 at the end of the second quarter, and the project team received three email inquiries. 2) Texts: RCTC is using text messaging as another way to send construction updates for this project. To date, 68 people has registered to receive texts. 3) Website: Visits to the rctc.org/15-91connector webpage totaled 5,714 during the quarter. 4) Social Media: The project’s Facebook, Twitter and Instagram accounts were also transferred from the 15 Express Lanes Project. This quarter’s Facebook likes totaled 2,778, Twitter followers totaled 335, and Instagram followers totaled 600 at the end of this quarter. Attachments: 1) RCTC Overall Public Engagement Metrics 2) Route 60 Truck Lanes Construction Public Engagement Metrics 3) I-15 Railroad Canyon Interchange Construction Public Engagement Metrics 4) I-215 Placentia Interchange Construction Public Engagement Metrics 5) 91 Corridor Operations Project Construction Public Engagement Metrics 6) 15/91 Express Lanes Connector Public Engagement Metrics 21 Top Pages Visited 2 3 4 Desktop vs Mobile Users 46%54%Desktop Mobile Facebook Twitter Instagram Top Channels 0% Overall Social Media Sentiment Eblasts Web Public Engagement Metrics: Q2 April - June 2021 Social Media Subscribers4,013 AverageOpen 25% AverageClick5% 40,329Number of Sessions +2.7%28,653Number ofUnique Users +1.9% Impressions2,325,699 Followers9,903 Engagement2,200 Impressions47,107 Followers1,330 Engagement1,054 Impressions14,270 Followers975 Engagement610 +28% +2% +163% +12% +7% -42% -2% +1% -84% Coachella Valley Rail Project 15-91 Express Lanes Connector Project Meetings and Agendas Homepage is #1 most visited page 4/14 (+) 15 Express Lanes opening spikes engagement and positive sentiment 6/10 (+) Positive response to CV Rail Project 6/17 (-) Negative community reaction to Pachappa Underpass Project 6/24 (+) Boosted posts about CV Rail public hearings generate positive response Direct (28.9%) - 8,459 Organic (45.8%) - 13,440 Social (14.5%) - 4,239 Referral (7.8%) - 2,285 Display (2.1%) - 607 -2 0 1 2 3 4 5 - 1 4/1 4/8 4/15 4/22 5/6 5/13 5/27 6/246/176/3 6/104/29 5/20 6/30 ATTACHMENT 1 22 May 2019 - June 2021 State Route 60 Truck Lanes ProjectQuarterly “At-a-Glance” Metrics Report Nu m b e r o f L i k e s / F o l l o w s To t a l W e b s i t e v i s i t s t o D a t e Nu m b e r o f S i g n - U p s Nu m b e r o f E m a i l s 0 5000 10000 15000 20000 25000 0 50 100 150 200 250 300 350 Ma y – Ju n 2 0 1 9 Jul – S e p 2 0 1 9 Oc t – D e c 2 0 1 9 Ma y – Ju n 2 0 1 9 Jul – S e p 2 0 1 9 Oc t – D e c 2 0 1 9 1,414 6,715 9,992 12,85014,31815,81617,232 19,49321,116 Email & Text Sign-Ups Website Sessions Emails to Project Team Social Media Likes/Follows Jan – M a r 2 0 2 0 Jan – M a r 2 0 2 0 Ap r - J u n 2 0 2 0 Ap r - J u n 2 0 2 0 61 263 285 291 299 315 322 332 339 Jul - S e p 2 0 2 0 Jul - S e p 2 0 2 0 Oc t - D e c 2 0 2 0 Oc t - D e c 2 0 2 0 Jan – M a r 2 0 2 1 Jan – M a r 2 0 2 1 Ap r – Ju n 2 0 2 1 Ap r – Ju n 2 0 2 1 Ma y – Ju n 2 0 1 9 0 200 400 600 800 1000 1200 0 50 100 150 200 250 1336 31101 52142 62152 69175 76197 84237 99331 109353 Jul – S e p 2 0 1 9 Oc t – D e c 2 0 1 9 Ma y – Ju n 2 0 1 9 Jul – S e p 2 0 1 9 Oc t – D e c 2 0 1 9 67 144 157 170 187 199 213 227 230 115 314 454 576 729 799 874 966 1,016 Jan – M a r 2 0 2 0 Jan – M a r 2 0 2 0 Jan – M a r 2 0 2 0 Ap r - J u n 2 0 2 0 Ap r - J u n 2 0 2 0 Jul - S e p 2 0 2 0 Jul - S e p 2 0 2 0 Oc t - D e c 2 0 2 0 Oc t - D e c 2 0 2 0 Jan – M a r 2 0 2 1 Jan – M a r 2 0 2 1 Ap r – Ju n 2 0 2 1 Ap r – Ju n 2 0 2 1 Facebook Page Likes Instagram Followers Twitter Followers Jan – M a r 2 0 1 9 Ap r – Ju n 2 0 1 9 Jan – M a r 2 0 1 9 Ap r – Ju n 2 0 1 9 Jan – M a r 2 0 1 9 Ap r – Ju n 2 0 1 9 Jan – M a r 2 0 1 9 Ap r – Ju n 2 0 1 9 ATTACHMENT 2 23 Apr 2020 - June 2021 I-15 Railroad Canyon Road Interchange ProjectQuarterly “At-a-Glance” Metrics Report Facebook Page Likes Instagram Followers Twitter Followers Ap r - J u n 2 0 2 0 Nu m b e r o f L i k e s / F o l l o w s Facebook Page Likes Instagram Followers Twitter Followers 0 200 400 600 800 1000 To t a l W e b s i t e v i s i t s t o D a t e 0 5 10 15 20 Nu m b e r o f S i g n - U p s Nu m b e r o f E m a i l s 0 2000 4000 6000 8000 10000 12000 22138 Ap r - J u n 2 0 2 0 Ap r - J u n 2 0 2 0 194208 1 803 Email & Text Sign-Ups Website Sessions Emails to Project Team Social Media Likes/Follows Ap r - J u n 2 0 2 0 0 100 200 300 400 500 600 Text Sign-UpsEmail Sign-Ups 234351 10 4,230 6,769 30205 850 Jul - S e p 2 0 2 0 Jul - S e p 2 0 2 0 Jul - S e p 2 0 2 0 Jul - S e p 2 0 2 0 246457 14 8,279 32254 886 Oc t - D e c 2 0 2 0 Oc t - D e c 2 0 2 0 Oc t - D e c 2 0 2 0 Oc t - D e c 2 0 2 0 256484 Jan - M a r 2 0 2 1 15 Jan - M a r 2 0 2 1 Jan - M a r 2 0 2 1 9,700 32320 946 Jan - M a r 2 0 2 1 Ap r - J u n 2 0 2 1 275547 19 11,114 35392 971 Ap r - J u n 2 0 2 1 Ap r - J u n 2 0 2 1 Ap r - J u n 2 0 2 1 Jan – M a r 2 0 1 8 Jul – S e p 2 0 1 8 Ap r – Ju n 2 0 1 8 Oc t – D e c 2 0 1 8 Jan – M a r 2 0 1 9 Ap r – Ju n 2 0 1 9 Jan – M a r 2 0 1 8 Jul – S e p 2 0 1 8 Ap r – Ju n 2 0 1 8 Oc t – D e c 2 0 1 8 Jan – M a r 2 0 1 9 Ap r – Ju n 2 0 1 9 Jan – M a r 2 0 1 8 Jul – S e p 2 0 1 8 Ap r – Ju n 2 0 1 8 Oc t – D e c 2 0 1 8 Jan – M a r 2 0 1 9 Ap r – Ju n 2 0 1 9 Jan – M a r 2 0 1 8 Jul – S e p 2 0 1 8 Ap r – Ju n 2 0 1 8 Oc t – D e c 2 0 1 8 Jan – M a r 2 0 1 9 Ap r – Ju n 2 0 1 9 ATTACHMENT 3 24 Jul 2020 - Jun 2021 I-215 Placentia Interchange ProjectQuarterly “At-a-Glance” Metrics Report Jul - S e p 2 0 2 0 Nu m b e r o f P o s t E n g a g e m e n t s 0 500 1000 1500 2000 2500 3000 To t a l W e b s i t e v i s i t s t o D a t e 0 2 4 6 8 10 12 Nu m b e r o f S i g n - U p s Nu m b e r o f E m a i l s 0 500 1000 1500 2000 2500 Jul - S e p 2 0 2 0 Jul - S e p 2 0 2 0 155 1 2,016 Email Sign-Ups Website Sessions Emails to Project Team Social Media Post Engagements Jul - S e p 2 0 2 0 0 100 200 300 400 500 600 700 800 327 3 488 1,243 2,623 Oc t - D e c 2 0 2 0 Oc t - D e c 2 0 2 0 Oc t - D e c 2 0 2 0 Oc t - D e c 2 0 2 0 499 Jan - M a r 2 0 2 1 7 Jan - M a r 2 0 2 1 1,757 Jan - M a r 2 0 2 1 2,827 Jan - M a r 2 0 2 1 677 11 2,321 2,915 Ap r – Ju n 2 0 2 1 Ap r – Ju n 2 0 2 1 Ap r - J u n 2 0 2 1 Ap r - J u n 2 0 2 1 Jan – M a r 2 0 1 8 Jul – S e p 2 0 1 8 Ap r – Ju n 2 0 1 8 Oc t – D e c 2 0 1 8 Jan – M a r 2 0 1 9 Ap r – Ju n 2 0 1 9 Jan – M a r 2 0 1 8 Jul – S e p 2 0 1 8 Ap r – Ju n 2 0 1 8 Oc t – D e c 2 0 1 8 Jan – M a r 2 0 1 9 Ap r – Ju n 2 0 1 9 Jan – M a r 2 0 1 8 Jul – S e p 2 0 1 8 Ap r – Ju n 2 0 1 8 Oc t – D e c 2 0 1 8 Jan – M a r 2 0 1 9 Ap r – Ju n 2 0 1 9 Jan – M a r 2 0 1 8 Jul – S e p 2 0 1 8 Ap r – Ju n 2 0 1 8 Oc t – D e c 2 0 1 8 Jan – M a r 2 0 1 9 Ap r – Ju n 2 0 1 9 ATTACHMENT 4 25 Nov 2020 - Jun 2021 State Route 91 Corridor Operations ProjectQuarterly “At-a-Glance” Metrics Report Jan - M a r 2 0 2 1 Nu m b e r o f P o s t E n g a g e m e n t s 0 100 200 300 400 500 To t a l W e b s i t e v i s i t s t o D a t e 0 2 4 6 8 10 12 Nu m b e r o f S i g n - U p s Nu m b e r o f E m a i l s a n d C a l l s 0 200 400 600 800 1000 Jan - M a r 2 0 2 1 Jan - M a r 2 0 2 1 155 10 445 Email Sign-Ups Website Sessions Emails to Project Team Social Media Post Engagements Jan - M a r 2 0 2 1 0 500 1000 1500 2000 2500 3000 2,527 552 11 2,504 994 499 Ap r - J u n 2 0 2 1 Ap r - J u n 2 0 2 1 Ap r - J u n 2 0 2 1 Ap r - J u n 2 0 2 1 Jan – M a r 2 0 1 8 Jul – S e p 2 0 1 8 Ap r – Ju n 2 0 1 8 Oc t – D e c 2 0 1 8 Jan – M a r 2 0 1 9 Ap r – Ju n 2 0 1 9 Jan – M a r 2 0 1 8 Jul – S e p 2 0 1 8 Ap r – Ju n 2 0 1 8 Oc t – D e c 2 0 1 8 Jan – M a r 2 0 1 9 Ap r – Ju n 2 0 1 9 Jan – M a r 2 0 1 8 Jul – S e p 2 0 1 8 Ap r – Ju n 2 0 1 8 Oc t – D e c 2 0 1 8 Jan – M a r 2 0 1 9 Ap r – Ju n 2 0 1 9 Jan – M a r 2 0 1 8 Jul – S e p 2 0 1 8 Ap r – Ju n 2 0 1 8 Oc t – D e c 2 0 1 8 Jan – M a r 2 0 1 9 Ap r – Ju n 2 0 1 9 ATTACHMENT 5 26 Apr - Jun 2021 15/91 Express Lanes Connector ProjectQuarterly “At-a-Glance” Metrics Report Ap r - J u n 2 0 2 1 Nu m b e r o f P o s t E n g a g e m e n t s 0 500 1000 1500 2000 2500 3000 To t a l W e b s i t e v i s i t s t o D a t e 0.0 0.5 1.0 1.5 2.0 2.5 3.0 Nu m b e r o f S i g n - U p s Nu m b e r o f E m a i l s a n d C a l l s 0 1000 2000 3000 4000 5000 6000 Ap r - J u n 2 0 2 1 Ap r - J u n 2 0 2 1 155 3 Email & Text Alert Sign-Ups Website Sessions Emails to Project Team Social Media Followers Ap r - J u n 2 0 2 1 0 500 1000 1500 2000 2500 3000 2,825 5,714 68 2,778 335 600 Facebook Followers Twitter Followers Instagram Followers Email Sign-Ups Text Sign-Ups Jan – M a r 2 0 1 8 Jul – S e p 2 0 1 8 Ap r – Ju n 2 0 1 8 Oc t – D e c 2 0 1 8 Jan – M a r 2 0 1 9 Ap r – Ju n 2 0 1 9 Jan – M a r 2 0 1 8 Jul – S e p 2 0 1 8 Ap r – Ju n 2 0 1 8 Oc t – D e c 2 0 1 8 Jan – M a r 2 0 1 9 Ap r – Ju n 2 0 1 9 Jan – M a r 2 0 1 8 Jul – S e p 2 0 1 8 Ap r – Ju n 2 0 1 8 Oc t – D e c 2 0 1 8 Jan – M a r 2 0 1 9 Ap r – Ju n 2 0 1 9 Jan – M a r 2 0 1 8 Jul – S e p 2 0 1 8 Ap r – Ju n 2 0 1 8 Oc t – D e c 2 0 1 8 Jan – M a r 2 0 1 9 Ap r – Ju n 2 0 1 9 ATTACHMENT 6 27 AGENDA ITEM 6E Agenda Item 6E RIVERSIDE COUNTY TRANSPORTATION COMMISSION DATE: August 23, 2021 TO: Budget and Implementation Committee FROM: Marlin Feenstra, Project Delivery Director THROUGH: Anne Mayer, Executive Director SUBJECT: Quarterly Reporting of Contract Change Orders 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 ended June 30, 2021; and 2) Forward to the Commission for final action. BACKGROUND INFORMATION: During the past quarter, April to June 2021, the Commission has had the following projects under construction: 1. Mid County Parkway (MCP) 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 (91 COP) 8. 15/91 Express Lanes Connector 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. The following table summarizes the Contract Change Orders that occurred in the last quarter (4th quarter of FY 2020/21). 28 Agenda Item 6E FISCAL IMPACT: The Contract Change Orders were executed using available contingency authorized with the construction contract for each project. 29 AGENDA ITEM 6F Agenda Item 6F RIVERSIDE COUNTY TRANSPORTATION COMMISSION DATE: August 23, 2021 TO: Budget and Implementation Committee FROM: Martha Masters, Senior Management Analyst Jenny Chan, Planning and Programming Manager THROUGH: Jillian Guizado, Planning and Programming Director SUBJECT: Fiscal Year 2021/22 Annual Local Transportation Fund Planning Allocations to Western Riverside Council of Governments and Coachella Valley Association of Governments STAFF RECOMMENDATION: This item is for the Committee to: 1) Approve an allocation of Local Transportation Fund (LTF) funds for planning in the amount of $866,250 for Western Riverside Council of Governments (WRCOG) and $472,500 for Coachella Valley Association of Governments (CVAG) for efforts identified in each agency’s FY 2021/22 LTF Program Objectives/Work Plan (Work Plan) that supports transportation planning programs and functions that are consistent with regional and subregional plans, programs, and requirements; and 2) Forward to the Commission for final action. BACKGROUND INFORMATION: The LTF established in state law by the Transportation Development Act (TDA) is funded through a quarter of one cent of the state’s 7.25 percent sales tax (based on point of sale and returned to source). LTF funds are used to fund transportation planning, operations, and capital projects. The action requested at this time is specifically to allocate the planning funds to the two councils of governments, WRCOG and CVAG. Other LTF allocations, such as those for transit and rail operations and capital projects, were approved by the Commission in June 2021. Bicycle and pedestrian facilities are also funded by LTF and are part of the biennial SB 821 Call for Projects. The LTF funding is distributed by the California Department of Tax and Fee Administration to counties on a pro rata basis, pursuant to Section 99233.2 of the TDA, providing up to 3 percent of annual revenues to fund transportation planning and programming efforts. The Commission, as the regional transportation planning agency, is legally responsible for apportioning the LTF funds. Based on the projected FY 2021/22 revenues of $105 million, 3 percent of the projected revenue, or $3.15 million, is for planning and programming. By statute, the TDA also requires one half of these LTF funds, or $1.575 million, be allocated for planning activities within the 30 Agenda Item 6F Western Riverside County and the Coachella Valley areas, as determined by the Commission. The distribution formula, as confirmed by the Commission in October 2014, is as follows: Planning Agency Percentage Apportionment/Allocation RCTC 15 $236,250 WRCOG 55 866,250 CVAG 30 472,500 Total 100 $1,575,000 WRCOG and CVAG submitted their respective FY 2021/22 Work Plans in accordance with existing guidelines. WRCOG’s Work Plan is divided into two program areas and includes the following activities: 1) Planning Programs – including, but not limited, to: - Riverside County Model Update - 2024 Southern California Association of Government’s (SCAG) Regional Transportation Plan/Sustainable Communities Strategy (RTP/SCS) - SB 743 Implementation Assistance - Geographic Information System (GIS)/Modeling Services - Research on the impact of travel and technology on the transportation system - Transportation related climate change and climate adaptation analyses and planning for the WRCOG subregion 2) Regional Transportation Programs - Transportation Uniform Mitigation Fee (TUMF) Program - Riverside County Transportation Commission Programs CVAG’s Work Plan consists of ten main program areas: 1) Transportation Department Operations; 2) Project Management and Contract Administration; 3) CV Link Project Development; 4) CV Sync Project Development; 5) Riverside County Transportation Commission Programs; 6) Planning, Programming, and Monitoring Program; 7) Miscellaneous Programs including GIS Information Services, support for the countywide transportation model and Regional Arterial Traffic Count Program; 8) Congestion Management/Air Quality Programs; 9) TUMF Program; and 10) Governmental and Special Projects. Staff reviewed the Work Plans and found them to be consistent with the Commission’s overall transportation programming and planning objectives and recommends approval. In addition to 31 Agenda Item 6F the program areas and activites, the Work Plans also benefit the respective geographic regions and are consistent with subregional and regional plans, including SCAG’s RTP/SCS. WRCOG and CVAG, in conjunction with SCAG, are responsible for subregional planning efforts that implement and are in conformance with the RTP/SCS. Financial Information In Fiscal Year Budget: Yes Year: FY 2021/22 Amount: $1,338,750 Source of Funds: LTF Budget Adjustment: No GL/Project Accounting No.: 106 65 86205 Fiscal Procedures Approved: Date: 08/04/2021 Attachments: 1) WRCOG FY 2021/22 LTF Program Objectives/Work Plan 2) CVAG FY 2021/22 LTF Program Objectives/Work Plan 32 1 Western Riverside Council of Governments (WRCOG) Fiscal Year 2021/2022 Local Transportation Funds Program Objectives The Work Plan for FY 2021/2022 is divided into two Program areas: 1) Planning Programs and 2) Regional Transportation Programs. 1. Planning Programs California Air Resources Board South Coast Air Quality Management District (SCAQMD) Southern California Associations of Governments (SCAG) California Association of Councils of Governments (CALCOG) Local Jurisdictions within WRCOG subregion Planning: This program includes staff time to develop and work on nine main projects/program areas. These are listed below and include a brief description. A. Maintain and update the new Riverside County Transportation Analysis Model (RIVCOM) RIVCOM is a new transportation analysis model that provides updated socio- economic forecasts to reflect SCAG’s adopted growth forecasts, updated roadway network and utilizes data from SCAG’s most recent Regional Travel Model to ensure consistency. This model will be utilized by jurisdictions and consultants to produce roadway forecasts and other units of measurements, such as Vehicle Miles Traveled, needed for analyses. WRCOG will ensure that the model is disseminated to the appropriate parties in a timely fashion. Updates to the model will also be conducted based on new data becoming available and feedback from the users to ensure the model accurately reflects existing and future conditions. B. Support local jurisdictions on 2024 SCAG Regional Transportation Plan/Sustainable Communities Strategy (RTP/SCS) Staff will provide support to local jurisdictions as development of the SCAG 2024 RTP/SCS commences. This will include support to local jurisdictions on socio-economic data (SED) forecasts, on an as-needed basis to incorporate into the RTP/SCS. The assistance provided will be to ensure that input from the WRCOG subregion will be included in the long-range vision plan that aims to balance future mobility and housing needs with economic, environmental and public health goals. The RTP/SCS is vital for the subregion as it allows Riverside County Transportation Commission (RCTC) 33 ATTACHMENT 1 2 and its jurisdictions to qualify for federal funding towards transportation projects. The RTP/SCS is supported by a combination of transportation and land use strategies that help the region achieve state greenhouse gas emission reduction goals and federal Clean Air Act requirements, preserve open space areas, improve public health and roadway safety, support our vital goods movement industry and utilize resources more efficiently. C. Continue to assist jurisdictions with Senate Bill (SB) 743 Implementation WRCOG conducted a SB 743 Implementation Study that assisted stakeholders to transition from utilizing level of service methodology for mitigation impacts to vehicle miles traveled. WRCOG will continue to assist jurisdictions, upon request, as VMT implementation progresses in identifying the necessary steps to implementing SB 743 and as jurisdictions begin to receive questions from stakeholders and work through the approval process for a development project with VMT as the transportation analysis metric. D. GIS/Modeling Services WRCOG will provide GIS and transportation modeling services to the member agencies of WRCOG. This service is meant to provide GIS/modeling capabilities and products to WRCOG member agencies on an as-needed basis, to enhance GIS/Transportation at agencies currently managing their own systems, and to provide quick, inexpensive services to members without need for additional staff, consultants, software licensing, hardware needs. Possible services include: General Plan amendments, traffic volume maps, traffic model scenarios for new development, project mapping, demographics, service area analysis, and SB-743 implementation. E. Research on travel and technology and the impact on the transportation system WRCOG will continue to conduct research on-behalf of jurisdictions in Western Riverside County, as requested, to help prepare and provide information on the various challenges faced in the subregion. Changes in demographics will have an effect on travel conditions. WRCOG will continue to conduct research on travel behavior, especially as it relates to coming out of the COVID-19 pandemic, travel pattern and automation in order to highlight potential challenges the subregion may face and the opportunities jurisdictions should strategically be in position to leverage. WRCOG will continue to work to ensure this information is disseminated to jurisdictions and stakeholders through its Committee structure and is presented at forums, conferences, and panels where suitable. F. Research, agenda preparation, and staffing for WRCOG Planning Directors Committee The research, agenda preparation, and staffing for the WRCOG Planning Directors Committee will support WRCOG member agencies to obtain information, access to research, and awareness of applicable grant opportunities, as well as foster discussions between WRCOG member 34 3 jurisdictions regarding the latest challenges and opportunities facing the WRCOG subregion, in order to achieve more cost effective and efficient solutions to planning-related matters on a monthly basis. G. Research, agenda preparation, and staffing for WRCOG Public Works Committee The research, agenda preparation, and staffing for the WRCOG Public Works Committee will support WRCOG member agencies to obtain information, access to research, and awareness of applicable grant opportunities, as well as foster discussions between WRCOG member jurisdictions regarding the latest challenges and opportunities facing the WRCOG subregion, in order to achieve more cost effective and efficient solutions to public works or engineering-related matters on a monthly basis. H. Outreach for WRCOG Programs and activities and engagement with WRCOG members, partner agencies, and stakeholders The outreach for WRCOG Programs and activities and partner agencies will include assisting local jurisdictions and education institutions on the various WRCOG Programs and subregional challenges faced. Housing challenges the subregion faces are topics discussed at the various WRCOG Committees so staff will focus on topics and issues related to housing. This focus will include conducting outreach to the subregion’s legislatures and their staff to provide updates on the housing challenges that local jurisdictions and agencies are facing. Staff will continue to provide content for educational outreach on issues faced in the WRCOG subregion and WRCOG Programs through platforms, such as the “WRCOGCAST” and “Elevate”. “Elevate” is a platform WRCOG initiated in response to the changing times that came with the COVID-19 pandemic in order to disseminate information to local jurisdictions and stakeholders with the hopes of providing substantive, meaningful, and up-to-date content. Outreach will continue for the WRCOG Public Service Fellowship, which encourages students to seek careers in public policy and local government by gaining meaningful, hands-on experience at WRCOG member agencies. In addition, staff will continue to promote and attend member jurisdiction/agency events throughout the year. I. Staff time for the implementation of the subregional Climate Action Plan, climate-related hazards and climate adaptation analyses and planning for the WRCOG subregion. The staff time for the subregional Climate Action Plan, climate-related hazards and climate adaptation efforts for the WRCOG subregion will be to continue overseeing studies and planning efforts to identify effects of climate change to the subregion and opportunities to mitigate these effects, particularly as it relates to transportation infrastructure. One specific effort that will be supported by LTF will be to conduct risk assessments on a sample of vulnerable transportation assets in the subregion and identify the needs of disadvantaged or vulnerable communities. This effort expands on the previous development of design guidelines to create climate reliant transportation infrastructure. These efforts are to assist jurisdictions better 35 4 plan for project prioritization and investment on the transportation system. All of these efforts will combine as a guidebook for WRCOG member agencies as they conduct climate adaptation/resiliency planning. Staff will also continue to participate in the Inland Southern California Climate Collaborative (ISC3). ISC3 is a diverse, cross-sectoral network of agencies, organizations, companies, and institutions working together to advance equitable solutions to create a resilient and thriving Inland Southern California in the face of climate related events. Another specific effort that will be supported by LTF will be the implementation of the subregional Climate Action Plan (CAP) that will provide a framework for WRCOG jurisdictions that chose to participate and comply with state legislation and greenhouse gas emission (GHG) targets through collaborative planning. The CAP provides different strategies that participating jurisdictions can implement to reduce GHG emissions and improve overall health in the region. WRCOG has identified separate grant funding to conduct a programmatic Environmental Impact Report (EIR) that enables the CAP to succeed as a qualified greenhouse gas reduction plan. The State of California has instituted a series of legislative changes to environmental and land use law in an attempt to address the housing crises and remove barriers to housing production. One of the changes made was to include a provision in CEQA to simplify environmental documentation requirements for developers when development occurs in a community with an adopted qualified greenhouse reduction plan. Conducting the programmatic EIR enables those jurisdictions that so choose to participate the ability to remove a few barriers to housing production. Both of these projects are partially funded through SB 1 Planning Funds. 2. Regional Transportation Programs RCTC Riverside Transit Agency Caltrans SCAG CALCOG This program includes staff time to develop and work on two main projects/program areas. These are listed below and include a brief description. Transportation Uniform Mitigation Fee Program: This Program includes staff time to administer the TUMF Program, which includes but is not limited to the following: A. Program contract/agreement administration: Review, coordinate, and finalize Reimbursement Agreements with member agencies for funding allocations based on five-year Zone Transportation Improvement Program (TIP). 36 5 B. Conduct TUMF Nexus Study California Assembly Bill 1600 requires that all local agencies in California establish a nexus or reasonable relationship between the development impact fee’s use and the type of project for which the fee is required. In accordance with this requirement, WRCOG plans to commence an analysis with the TUMF Program to ensure the adequacy of the developer impact fees and the projects included in the TUMF Network beginning in the Fall 2021. C. Public outreach/information: Prepare the TUMF Annual Report detailing collections for fiscal year and projects being funded with collections. Develop Press Releases for the TUMF Program highlighting major milestones, groundbreakings, ribbon cuttings. Filming of groundbreakings and ribbon cuttings for TUMF funded projects. Develop and purchase of signage for TUMF funded projects. D. TUMF Zone Transportation Improvement Program (TIP): Preparation and approval of five-year Zone TIPs with programmed funding for delivery of TUMF projects. Convene meetings of the Zone at the request of member agencies for funding additions and adjustments. Review funding requests to ensure that allocations are within limits of the Nexus Study. E. Preparation of annual adjustment for construction costs: Per the TUMF Administrative Plan, annual review of the construction cost index adjustment to the TUMF for consideration by the WRCOG Executive Committee. Preparation of the adjustment to the TUMF Network and develop documents for review by the WRCOG Committee structure. If approved by the WRCOG Executive Committee, prepare TUMF Ordinance/Resolution for member agency approval and assist local jurisdictions and stakeholders with fee adjustment implementation. F. Maintain TUMF payment portal: WRCOG is collecting TUMF on behalf of agencies that have approved a TUMF Ordinance Amendment with the option to delegate fee collection responsibility to WRCOG. To provide efficient and effective calculation and collection of TUMF, WRCOG developed a portal for member agency staff to submit calculation requests and for developers to make payments that will require maintenance and revisions. G. Work with developers on credit and reimbursement agreements: Coordinate with member agencies Credit Agreements with developers to ensure that all policies and procedures are in place prior to execution of agreements. If necessary, convene meetings with applicable stakeholders to memorialize eligible expenses, maximum allocations of the Nexus Study and reconciliation of projects costs. 37 6 H. Review available data for request made my stakeholders regarding TUMF calculations: At the request of a stakeholder, review available data specific to land uses that may generate trips that do not typically fall within the standard TUMF land uses. RCTC Programs: This Program includes staff time to administer and assist RCTC as it relates transportation planning and air quality programs, which includes but is not limited to the following: a) Participation in TUMF Program tasks as needed to assist RCTC in the implementation of the Regional TUMF Program. b) Participate in evaluation committees as requested; outreach assistance with RCTC’s Programs and goals, and other planning related tasks as determined in consultation with the RCTC Executive Director. 38 TRANSPORTATION DEPARTMENT PROGRAM GOALS AND OBJECTIVES FISCAL YEAR 2021/22 The Work Plan for 2021/22 is separated into ten main program areas: 1) Transportation Department Operations Transportation Program Administration Implementation of Transportation Project Prioritization Study (TPPS), Regional Arterial Cost Estimate (RACE) and Active Transportation Program (ATP) Capital Improvement Program (CIP) Update Other Transportation Planning Operations Management and Administration This program area performs primarily administrative functions which consist of general transportation program administrative activities and various transportation planning duties in support of the Transportation Department. Continued implementation of the 2016 TPPS, RACE and ATP Program and construction of the CV Link and CV Sync are the primary considerations this fiscal year, as well as a cash flow analysis that will help determine the timing of future transportation projects. (Funded from Measure A, TUMF and Active Transportation Program Funds) 2)Project Management and Contract Administration Financial Cash Flow Project Status Tracking Preparation and Monitoring of Reimbursement Agreements Includes staff time to conduct project oversight (design, environmental, construction and close-out), preparation of reimbursement agreements for regional arterial, interchange and bridge projects, review and approval of project billings in accordance with project scope of work and participation in project development team meetings and associated staff reports. (Funded from Measure A, TUMF, LTF and Special Program Funds) 3) CV Link Project Development (Phased) Construction Project Development and Monitoring Cash Flow Tracking Grant Condition Monitoring Includes construction of largest segment to date, staff time to conduct project oversight of services needed for future phases (environmental compliance, right- of-way and phased construction of later segments); review of project billings; participation in project development team meetings and preparation of associated 39 ATTACHMENT 2 reports. Finalizing construction plans, specifications, and cost estimates for additional phases of the CV Link Project is also a consideration this fiscal year. (Funded from Riverside County Regional Park and Open Space District Grant, Caltrans Environmental Justice Grant, California Strategic Growth Council Grant, PP&M, LTF, Sentinel Project AQMD Grant, Desert Healthcare District, CMAQ, STIP, ATP and Measure A) 4) CV Sync Project Development (Phased)  Construction  Project Development and Monitoring  Cash Flow Tracking  Grant Condition Monitoring Includes construction of Phase 1 and first three corridors, staff time to conduct project oversight of consultant services (environmental compliance, right-of-way and phased construction plans); review of project billings; participation in project development team meetings and preparation of associated reports. Finalizing construction plans, specifications and cost estimates and starting construction of Phase 2 is also a consideration this fiscal year. (Funded from CMAQ, STIP, and Measure A) 5) Riverside County Transportation Commission (RCTC) Programs  Congestion Management Program/System (CMP/CMS)  RCTC Technical Advisory Committee  SB 821  Coachella Valley Rail Program  Local Streets & Roads Includes staff time to support the Riverside County Congestion Management Program; analysis of traffic patterns through the traffic count program; provide RCTC staff regional transportation project information for the State Regional Transportation Improvement Program (RTIP); support the RCTC Technical Advisory Committee; support efforts for County-wide SB 821 and Local Streets & Roads funding; Coachella Valley Passenger Rail Service Development Plan. (Funded from LTF, STA, Proposition 1B [one-time funds] and TUMF) 6) Planning, Programming and Monitoring Program  Regional Transportation Improvement Program/State Transportation Improvement Program (RTIP/STIP) This area includes staff time in support of the State Transportation Improvement Program (STIP) and Regional Transportation Improvement Program (RTIP), support in implementation of the CVAG Transportation Project Prioritization Study (TPPS), coordination of updates to the Capital Improvement Plan (CIP), and monitoring and examining impacts of implementing SB 45. TPPS activities support the regional project construction program which includes staff time to 40 develop an annual prioritized list of construction projects and required financial resources. (Funded from PP&M, LTF and Measure A) 7) Miscellaneous Programs  GIS Information Services  Maintain Transportation Model  Regional Arterial Traffic Count Program This area involves support to multiple programs with a focus on key project areas. These areas include staff time and project management to maintain and provide input for GIS Information Services, the countywide transportation demand model, the regional arterial traffic count program, and transportation legislation review and analysis. GIS Information Services includes staff time to provide regional land use information to CVAG jurisdictions, developers, SCAG and Caltrans. The countywide transportation model involves support for the RIVCOM transportation model for forecasting projected transportation system needs to the year 2039. (Funded from Measure A, TUMF, and Special Program Funds) 8) Congestion Management /Air Quality Programs  CMAQ Programs  Conformance with SIP requirements Involves Transportation Department staff support to CMAQ program areas. Also includes implementation of State Implementation Plan (SIP) conformance to CVAG regional projects. (Funded from CMAQ and Measure A) 9) Transportation Uniform Mitigation Fee (TUMF) Program  TUMF Program Administration  TUMF/GIS Interface  TUMF Audits Includes staff time in support of the TUMF program and TUMF/GIS Interface program. TUMF program activities include staff time to update the program, monitor the implementation of the TUMF program in member jurisdictions, to perform annual fiscal reviews of building permits and monthly TUMF collections, to research, analyze and prepare reports for TUMF appeals, to enter TUMF collections in the TUMF data base, to meet with developers on request to review potential TUMF assessments, and to perform special TUMF analysis on request. The TUMF/GIS Interface program requires support for continuing the development of integrating the TUMF collection process with electronic transmission of new development information for land use coverages. Continued coordination with RCTC on TUMF compliance by Coachella Valley jurisdictions. The TUMF program is a primary consideration this fiscal year. (Funded from TUMF) 41 10) Governmental and Special Projects  Southern California Association of Governments (SCAG) The SCAG program includes staff time to coordinate the CVAG sub-region SCAG Program needs, develop annual growth projections, provide input to the Federal and Regional Transportation Improvement Plans (FTIP and RTIP), and assist SCAG with transportation modeling refinements. Additionally, staff performs specific transportation project work for SCAG. (Funded from Special Program Funds)  Special Projects Some proposed projects may involve general fund money or special grants. Any project not already a part of the regular work programs, will be brought through the committee process for approval of the proposed work. (Funded from Special Grant funds) 42 AGENDA ITEM 7 Agenda Item 7 RIVERSIDE COUNTY TRANSPORTATION COMMISSION DATE: August 23, 2021 TO: Budget and Implementation Committee FROM: Eric DeHate, Transit Manager THROUGH: Lorelle Moe-Luna, Multimodal Services Director SUBJECT: Fiscal Year 2021/22 State of Good Repair Program Allocations STAFF RECOMMENDATION: This item is for the Committee to: 1) Approve Resolution No. 21-016, “Resolution of the Riverside County Transportation Commission Approving the FY 2021/22 Project List for the California State of Good Repair Program”; 2) Approve an allocation of $4,251,328 related to Fiscal Year 2021/22 State of Good Repair (SGR) program funds to eligible Riverside County transit operators; 3) Authorize staff to allocate increased State Controller Office (SCO) FY 2021/22 revenue estimates up to $425,132, or 10 percent of the current estimate, to eligible Riverside County transit operators; 4) Approve an increase of $46,928 in the FY 2021/22 budget for SGR revenues to reflect updated SCO estimates; 5) Authorize the Executive Director, or designee, to review, approve and submit projects to Caltrans which are consistent with SGR program guidelines and to execute and submit required documents for the SGR program, including the Authorized Agent Form; 6) Authorize the Executive Director, or designee, to approve administrative amendments to the FY 2021/22 Short Range Transit Plans (SRTPs) for incorporation of the SGR funds, as necessary; and 7) Forward to the Commission for final action. BACKGROUND INFORMATION: The SGR program was established through Senate Bill (SB) 1 in April 2017 and is funded from a portion of the new Transportation Improvement Fee on vehicle registrations. SGR provides approximately $105 million annually to transit operators in California for eligible transit maintenance, rehabilitation, and capital projects. Funds are apportioned similar to the State Transit Assistance program formula, utilizing two categories for funding: population and transit operator revenues. Apportionments by population are discretionary and fall under Public Utilities Code (PUC) 99313, and apportionments based on transit operator revenues are non- discretionary and fall under PUC 99314. Apportionments for both PUC 99313 and 99314 are determined by the SCO. The total estimated amount of SGR funds available to Riverside County 43 Agenda Item 7 for FY 2021/22 is $4,251,328. Of this amount, $3,653,334 is apportioned by population under PUC 99313, and will be sub-allocated by the Commission. PUC 99314 provides $597,994 directly to the transit operators as determined by the SCO. As the Regional Transportation Planning Agency for Riverside County, the Commission has the following responsibilities: • Receive and allocate SGR funds to transit operators based on local needs (PUC 99313) and based on formula amounts published by the SCO (PUC 99314); • Via board resolution, approve the annual list of SGR projects submitted by the public transit operators and ensure funds are expended on SGR-eligible activities; • Complete an updated authorized agent form; and • Comply with all relevant federal and state laws, regulations, and policies for funding. In order to receive funding for FY 2021/22, by September 1, the Commission is required to submit to Caltrans a resolution, which confirms the Commission is an eligible project sponsor and may receive, distribute, concur and approve the list of projects, which are to be funded under the SGR program. Revised SGR funding amounts were released on July 30, 2021. Due to the board meeting schedule, Caltrans approved the Commission’s request to submit an approved resolution and project list by September 30. Staff recommends approval of Resolution No. 21-016, which is included as Attachment 1 to the report. Sub-allocations for PUC 99313 are apportioned by the Commission based on need and the amounts allocated to each operator is presented in Attachment 2. It is important to note that the funding allocation is an estimate provided by the SCO. Actual funds received are based on the Transportation Improvement Fee collected on vehicle registrations. Most funding sources the Commission oversees have a fund balance, which provides stability in changes to economic conditions and allows projects and programs to move forward even during economic uncertainty. Caltrans requires all SGR funds to be programmed and operators are encouraged to use these funds as expeditiously as possible. While Caltrans prefers this type of programming, it can leave little to no fund balance, which can affect project estimates. Staff included the January 2021 estimates provided by the SCO for SGR funding allocations concurrently with the annual SRTP allocation process approved by the Commission in June. Staff did not include the resolution during that process anticipating a revised estimate in July from the SCO and subsequent board authorization. The July estimate provided by the SCO, shows an increase of 1.12 percent over the January estimate. Any increases in funding allocations to the transit operators require staff to return to the Commission for approval. Any decreases in funding allocations will be within the approved amount the Commission authorizes and can be amended administratively. Due to the fluctuations in funding and revisions to the quarterly estimates provided by the SCO, staff recommends authorization for an increase to the FY 2021/22 allocation for up to 10 percent of the current allocation in the event of an increased SCO estimate 44 Agenda Item 7 and for the Executive Director, or designee, to approve administrative amendments to the FY 2021/22 SRTPs for incorporation of the SGR funds, as necessary. Financial Information In Fiscal Year Budget: Yes No Year: FY 2021/22 FY 2021/22 Amount: $ 4,204,400 $ 46,928 Source of Funds: SB1 State of Good Repair Budget Adjustment: No Yes GL/Project Accounting No.: 00222X 401 4230X 0000 242 62 4230X (SGR revenues by various geographic area/project numbers) Fiscal Procedures Approved: Date: 08/11/2021 Attachments: 1) Resolution No. 21-016 2) SGR FY 2021/22 Allocations by Operator 45 RESOLUTION NO. 21-016 RESOLUTION OF THE RIVERSIDE COUNTY TRANSPORTATION COMMISSION APPROVING THE FY 2021/22 PROJECT LIST FOR THE CALIFORNIA STATE OF GOOD REPAIR PROGRAM WHEREAS, Senate Bill 1 (SB 1), the Road Repair and Accountability Act 2017, established the State of Good Repair (SGR) program to fund eligible transit maintenance, rehabilitation and capital project activities that maintain the public transit system in a state of good repair; and WHEREAS, the Riverside County Transportation Commission is an eligible project sponsor and may receive and distribute State Transit Assistance – SGR funds to eligible project sponsors (local agencies) for eligible transit capital projects; WHEREAS, the Riverside County Transportation Commission distributes SGR funds to eligible project sponsors (local agencies) under its regional jurisdiction; and WHEREAS, the Riverside County Transportation Commission concurs with and approves the attached project list for the SGR Program funds; and NOW, THEREFORE, BE IT RESOLVED, that the Riverside County Transportation Commission hereby approves the SB 1 SGR Project List for FY 2021/22; and NOW, THEREFORE, BE IT RESOLVED, by the Board of Commissioners of the Riverside County Transportation Commission that the fund recipient agrees to comply with all conditions and requirements set forth in the Certification and Assurances document and applicable statutes, regulations and guidelines for all SGR funded transit capital projects. NOW, THEREFORE, BE IT RESOLVED, that the Executive Director or designee is hereby authorized to submit a request for Scheduled Allocation of the SB 1 SGR funds and to execute the related grant applications, forms and agreements, including the Authorized Agent Form. APPROVED AND ADOPTED this 15th day of September, 2021. _____________________________________ Jan C. Harnik, Chair Riverside County Transportation Commission ATTEST: _________________________________ Lisa Mobley, Clerk of the Board Riverside County Transportation Commission ATTACHMENT 1 46 Bus Rail Bus RailPUC 99313 Discretionary 1,488,447 1,226,421 889,279 0 49,187 3,653,334City of Banning 22,754City of Beaumont 56,715City of Corona 98,000City of Riverside 0Riverside Transit Agency 1,310,978PUC 99314 Non-Discretionar 203,946 273,579 118,656 0 1,813 597,994City of Banning 2,149City of Beaumont 3,285City of Corona 4,399City of Riverside 5,091Riverside Transit Agency 189,022Total FY 21/22 SGR Funding 1,692,393 1,500,000 1,007,935 0 51,000 4,251,328 Rev. 8/4/21 Agency PUC 99313 PUC 99314 Total SGR Allocation Project NumberCity of Banning 22,754 2,149 $24,903 22-TBDCity of Beaumont 56,715 3,285 $60,000 22-04City of Corona 98,000 4,399 $102,399 22-02City of Riverside 5,091 $5,091 22 -1 Palo Verde Valley Transit Ag 49,187 1,813 $51,000 23-TBDRCTC1,226,421 273,579 $1,500,000 22-1 Riverside Transit Agency 1,310,978 189,022 $1,500,000 23-TBD SunLine 681,344 118,656 $800,000 23- TBDSunLine207,935 $207,935 22-06Grand Totals 3,653,334 597,994 $4,251,328 Maintenance Infrastructure: SGR Equipment and Facility Upgrades.Rail Stations - Capital RehabilitationFacility, Maintenance, Safety and Revenue/Support Vehicle Replacements, Enhancements and Upgrades Microgrid to Hydrogen Phase IIIBus Refurbishments Facility Access System FY 2021/22 State of Good Repair (SGR) Funding AllocationState Controller's Office Transmittal Letter of July 30, 2021 (Revised Estimate) Western Riverside Coachella Valley Palo Verde Valley Total FY 21/22 SGR PROPOSED PROJECT LISTING Proposed Project DescriptionCapitalized Preventative MaintenanceMobile LiftsReplacement of 2012 Buses 47 ATTACHMENT 2 FISCAL YEAR 2021/22 STATE OF GOOD REPAIR PROGRAM ALLOCATIONS Eric DeHate, Transit Manager 1 Budget and Implementation Committee August 23, 2021 Background Information 2 •State of Good Repair (SGR) established through Senate Bill 1 (SB 1) in 2017 •Provides approximately $105 million statewide annually •Eligible projects: maintenance, rehabilitation, and capital projects •Apportionments based on State Transit Assistance (STA) formulas: Public Utility Codes (PUC) 99313 (discretionary) and 99314 (non- discretionary) •Determined by State Controller’s Office (SCO) –distributed at least twice a year (January and August). AUGUST 23, 2021 Recommended SGR Allocations 3 AUGUST 23, 2021 Agency PUC 99313 PUC 99314 Total SGR AllocationCity of Banning 22,754$ 2,149$ 24,903$ City of Beaumont 56,715$ 3,285$ 60,000$ City of Corona 98,000$ 4,399$ 102,399$ City of Riverside -$ 5,091$ 5,091$ Palo Verde Valley Transit Agency 49,187$ 1,813$ 51,000$ RCTC 1,226,421$ 273,579$ 1,500,000$ Riverside Transit Agency 1,310,978$ 189,022$ 1,500,000$ SunLine Transit Agency 681,344$ 118,656$ 800,000$ SunLine Transit Agency 207,935$ -$ 207,935$ Grand Totals 3,653,334$ 597,994$ 4,251,328$ Maintenance Infrastructure: SGR Equipment and Facility Rail Stations - Capital Facility, Maintenance, Safety and Revenue/Support Vehicle Replacements, Enhancements and Microgrid to Hydrogen Phase IIIBus Refurbishments Proposed Project DescriptionCapitalized Preventative MaintenanceMobile LiftsReplacement of 2012 BusesFacility Access System Staff Recommendations 4 1.Approve Resolution No. 21-016, “Resolution of the Riverside County Transportation Commission Approving the FY 2021/22 Project List for the California State of Good Repair Program;” 2.Approve an allocation of $4,251,328 related to FY 2021/22 SGR program funds to eligible Riverside County transit operators; 3.Authorize staff to allocate increased SCO FY 2021/22 revenue estimates up to $425,132, or 10 percent of the current estimate, to eligible Riverside County transit operators; 4.Approve an increase of $46,928 in the FY 2021/22 budget for SGR revenues to reflect updated SCO estimates; 5.Authorize the Executive Director, or designee, to review, approve and submit projects to Caltrans which are consistent with SGR program guidelines and to execute and submit required documents for the SGR program, including the Authorized Agent Form; 6.Authorize the Executive Director, or designee, to approve administrative amendments to the FY 2021/22 SRTPs for incorporation of the SGR funds, as necessary; and 7.Forward to the Commission for final action. AUGUST 23, 2021 QUESTIONS 5 AGENDA ITEM 8 Agenda Item 8 RIVERSIDE COUNTY TRANSPORTATION COMMISSION DATE: August 23, 2021 TO: Budget and Implementation Committee FROM: Eric DeHate, Transit Manager THROUGH: Lorelle Moe-Luna, Multimodal Services Director SUBJECT: Fiscal Year 2021-2022 Caltrans Sustainable Transportation Planning Grant Acceptance STAFF RECOMMENDATION: This item is for the Committee to: 1) Approve Resolution No. 21-014, “Resolution of the Riverside County Transportation Commission Accepting Funds from the California Department of Transportation Sustainable Transportation Planning Grant Program;” 2) Authorize the Executive Director, or designee, pursuant to legal counsel review, to execute any required documents or amendments to the Fiscal Year (FY) 2021-2022 Sustainable Transportation Planning Grant; and 3) Forward to the Commission for final action. BACKGROUND INFORMATION: The California Air Resources Board (CARB) instituted the innovative clean transit (ICT) regulation in December 2018, requiring all public transit agencies to gradually transition to a 100-percent zero-emission fleet by 2040. CARB requires submission of zero-emission bus rollout plans for large public transit agencies by December 2021 and small public transit agencies by June 2023. In November 2020, Commission staff was approached by agency staff from the smaller transit agencies in the County, which include the cities of Banning, Beaumont, Corona, and Riverside and the Palo Verde Valley Transit Agency, to conduct a zero-emission bus rollout plan on their behalf. Staff applied for the California Department of Transportation (Caltrans) FY 2021-2022 Sustainable Transportation Planning Grant (STPG) program under the Sustainable Communities Competitive- Technical category and requested a total of $271,380 to match $202,420 in State Transportation Improvement Program (STIP) Planning, Programming, and Monitoring (PPM) funds. The STPG program was established through Senate Bill 1 in April 2017 and is intended to maintain and integrate the state’s multi-modal transportation system by supporting and implementing Regional Transportation Plan /Sustainable Communities Strategies that help the state achieve its greenhouse gas reduction targets. 48 Agenda Item 8 DISCUSSION: Staff was notified on June 22, 2021 that the Commission’s application was selected for the award of $271,380. One of the requirements to receive funding from the STPG program is to include a board resolution that includes the following four (4) elements: • Title of the project • Title and person authorized to enter a contract with Caltrans on behalf of the applicant • Approved resolution that is less than one year old • Signed resolution by applicant’s board Staff recommends approval of Resolution No. 21-014, which is included as Attachment 1 to the report. The resolution includes all of the necessary elements that Caltrans requires. Once the Commission approves the resolution and it is signed, staff will submit this to Caltrans fulfilling the remaining requirement for authorization of the grant. Staff is poised to release the request for proposals in the fall for the development of the County’s smaller public transit operators’ zero-emission bus rollout plans in collaboration with the agency for submission to CARB by the June 2023 deadline. FISCAL IMPACT: Financial Information In Fiscal Year Budget: Yes Year: FY 2021/22 Amount: $ 473,800 Source of Funds: STPG and PPM Funds Budget Adjustment: No GL/Project Accounting No.: 002225 401 41502 0000 242 62 41502 002225 401 41510 0000 242 62 41510 Fiscal Procedures Approved: Date: 08/11/2021 Attachment: Resolution No. 21-014 49 RESOLUTION NO. 21-014 RESOLUTION OF THE RIVERSIDE COUNTY TRANSPORTATION COMMISSION ACCEPTING FUNDS FROM THE CALIFORNIA DEPARTMENT OF TRANSPORTATION SUSTAINABLE TRANSPORTATION PLANNING GRANT PROGRAM WHEREAS, the Riverside County Transportation Commission (“Commission”) is eligible to receive Federal and/or State funding for transportation planning related projects, through the State of California Department of Transportation (“Caltrans”); and WHEREAS, Caltrans administers the Sustainable Transportation Planning Grant Program; and WHEREAS, the Commission wishes to conduct a zero-emission bus rollout and implementation plan on behalf of the five (5) small public transit agencies in the County: cities of Banning, Beaumont, Corona, and Riverside; and the Palo Verde Valley Transit Agency; and WHEREAS, the Commission has applied to Caltrans for the Fiscal Year (FY) 2021- 2022 Sustainable Transportation Planning Grant Program for the project: Riverside County Zero-Emission Bus Rollout and Implementation Plans, and was awarded $271,380 from this competitive call for projects; and WHEREAS, a Restricted Grant Agreement is needed to be executed with Caltrans before such funds can be claimed; and WHEREAS, the Commission authorizes the Executive Director, or designee, to execute any required documents and any amendments thereto. NOW, THEREFORE BE IT RESOLVED that the Commission accepts the award from Caltrans for the FY 2021-2022 Sustainable Community Competitive Technical Transportation Planning Grants for the project: Riverside County Zero-Emission Bus Rollout and Implementation Plans. NOW, THEREFORE BE IT RESOLVED that the Commission wishes to enter into a Restricted Grant Agreement with Caltrans. NOW, THEREFORE BE IT RESOLVED that the Executive Director, or designee, be authorized to execute any required documents or amendments to the FY 2021-2022 Sustainable Transportation Planning Grant. This resolution shall take effect immediately upon its passage. 50 APPROVED AND ADOPTED this 15th day of September, 2021. Jan C. Harnik, Chair Riverside County Transportation Commission ATTEST: Lisa Mobley, Clerk of the Board Riverside County Transportation Commission 51 FISCAL YEAR 2021/22 CALTRANS SUSTAINABLE TRANSPORTATION PLANNING GRANT ACCEPTANCE Eric DeHate, Transit Manager 1 Budget and Implementation Committee August 23, 2021 Background Information 2 •RCTC staff applied for Caltrans’ Fiscal Year (FY) 2021/22 Sustainable Transportation Planning Grant (STPG) program on behalf of the five small transit operators (Cities of Banning, Beaumont, Corona, Riverside, and Palo Verde Valley Transit Agency) to complete a Zero- Emission bus rollout plan as required under the Innovative Clean Transit (ICT). •Staff requested $271,380 in STPG funds to match $202,420 in State Transportation Improvement Program Planning, Programming and Monitoring funding. AUGUST 23, 2021 Discussion 3 AUGUST 23, 2021 •The Zero-Emission bus rollout plan will include: –Transit agency profile, fleet, and facility composition. –Demonstrate how the transit agency will convert its fleet and facilities to zero- emission. •An approved resolution by the governing board is required to accept these funds and enter into a grant agreement with Caltrans. Staff Recommendations 4 1.Approve Resolution No. 21-014, “Resolution of the Riverside County Transportation Commission Accepting Funds from the California Department of Transportation Sustainable Transportation Planning Grant Program;” 2.Authorize the Executive Director, or designee, pursuant to legal counsel review, to execute any required documents or amendments to the FY 2021- 2022 Sustainable Transportation Planning Grant; and 3.Forward to the Commission for final action. AUGUST 23, 2021 QUESTIONS 5 AGENDA ITEM 9 COMMISSIONERS: PLEASE GIVE SPECIAL ATTENTION TO THE TWO BOLD ITALICIZED PARAGRAPHS AND ATTACHMENT 2 IN THIS AGENDA ITEM. Agenda Item 9 RIVERSIDE COUNTY TRANSPORTATION COMMISSION DATE: August 23, 2021 TO: Budget and Implementation Committee FROM: Theresia Trevino, Chief Financial Officer Michele Cisneros, Deputy Director of Finance THROUGH: Anne Mayer, Executive Director SUBJECT: Refinancing of 91 Express Lanes Toll Debt STAFF RECOMMENDATION: This item is for the Commission to: 1) Receive and file the presentation regarding the refinancing of the Commission’s Toll Revenue Senior Lien Bonds, 2013 Series A (2013A Bonds) and 2013 Transportation Infrastructure Financing and Innovation Act (TIFIA) Loan (2013 TIFIA Loan) related to the State Route 91 Corridor Improvement Project (91 Project) with the issuance of taxable and tax-exempt senior lien and second lien toll revenue refunding bonds (2021 Refunding Toll Bonds) and cash defeasance of a portion of the Commission’s Toll Revenue Senior Lien Bonds, 2013 Series B (2013B Bonds); 2) Approve the revised refinancing plan to issue the 2021 Refunding Toll Bonds to refund all or a portion of the 2013A Bonds, currently outstanding in the amount of approximately $123.8 million, and prepay all or a portion of the 2013 TIFIA Loan, currently outstanding in the amount of approximately $508 million; 3) Approve the cash defeasance of a portion of the Commission’s 2013B Bonds, currently outstanding in the amount of approximately $89.7 million, using an amount not to exceed $25 million of RCTC 91 Express Lanes (91 Express Lanes) toll revenues designated as surplus in accordance with the 2013 Toll Revenue Bonds Indenture or other legally available funds of the Commission; 4) Adopt Resolution No. 21-015, “Resolution Authorizing the Issuance and Sale of Not to Exceed $725,000,000 Aggregate Principal Amount of Riverside County Transportation Commission Toll Revenue Refunding Bonds in One or More Series, the Refunding, Defeasance, [and Purchase Through Tender Offer of Outstanding Bonds or Exchange Therefor,] the Execution and Delivery of One or More Supplemental Indentures, One or More Purchase Contracts, One or More Official Statements, One or More Continuing Disclosure Agreements, One or More Escrow Agreements,[ One or More Dealer Manager Agreements, and One or More Invitations to Tender,] and the Taking of All Other Actions Necessary in Connection Therewith”; 52 Agenda Item 9 5) Approve the proposed form of the Preliminary Official Statement for the issuance of not to exceed $725 million in 2021 Refunding Toll Bonds and authorize the Executive Director to approve and execute the printing and distribution of the final form of the Official Statement; 6) Ratify, confirm, and approve the proposed form of the Continuing Disclosure Agreement related to the 2021 Refunding Toll Bonds, by and between the Riverside County Transportation Commission and Digital Assurance Certification, L.L.C., as dissemination agent, and authorize the Executive Director to approve and execute the final form of the Continuing Disclosure Agreement; 7) Ratify, confirm, and approve the proposed forms of the Third Supplemental Indenture and Fourth Supplemental Indenture for the 2021 Refunding Toll Bonds, each by and between the Riverside County Transportation Commission and U.S. Bank National Association (US Bank), as Trustee, and authorize the Executive Director to approve and execute the final forms of the Third Supplemental Indenture and Fourth Supplemental Indenture; 8) Ratify, confirm, and approve the proposed form of the Bond Purchase Agreement(s), also referred to as Purchase Contract(s), between the Riverside County Transportation Commission and Bank of America Securities, Inc. (BofA), as Underwriter Representative acting on behalf of itself and Goldman, Sachs & Co. (Goldman), Wells Fargo Securities (Wells Fargo), J.P. Morgan (JPM), and Siebert Cisneros Shank & Co., LLC (Siebert), (collectively the Underwriters), for the 2021 Refunding Toll Bonds and authorize the Chief Financial Officer to approve and execute the final form of the Bond Purchase Agreement; 9) Ratify, confirm, and approve the proposed form of the Escrow Agreement for the 2013A Bonds and the proposed form of the Escrow Agreement for the 2013B Bonds, each by and between the Commission and US Bank, as Escrow Agent, and authorize the Executive Director to approve and execute the final Escrow Agreement; 10) Approve the estimated costs of issuance, including estimated underwriter’s discount, of $4,500,820 to be paid from the proceeds of the 2021 Refunding Toll Bonds; 11) Approve Agreement No. 05-19-510-18, Amendment No. 18 to Agreement No. 05-19-510-00, with Orrick, Herrington, & Sutcliffe LLP (Orrick) for bond counsel services related to the issuance of the 2021 Refunding Toll Bonds for an additional amount of $45,000 and a total amount not to exceed $3,375,000; 12) Approve adjustments to the Fiscal Year 2021/22 budget in the amounts of $9.8 million to increase bond proceeds and $25 million to increase debt service expenditures for the cash defeasance of a portion of the 2013B Bonds using 91 Express Lanes toll revenues designated as surplus; and 13) Forward to the Commission for final action. BACKGROUND INFORMATION: The Commission issued the 91 Express Lanes toll revenue debt, including the 2013 TIFIA Loan, in July 2013 to partially finance the 91 Project in Corona. Net toll revenues, including certain pledged reserve funds, represent the security for the toll revenue debt under the Master 53 Agenda Item 9 Indenture, First Supplemental Indenture, and Second Supplemental Indenture (collectively, Master Indenture). The original amounts of the toll revenue debt and the amounts outstanding as of August 31, 2021, are summarized in Table 1. The outstanding amounts for the Commission’s 2013B Bonds and the 2013 TIFIA Loan reflect the addition of compounded (or accreted) interest1. Table 1 − Outstanding 91 Express Lanes Toll Revenue Bonds Toll Revenue Bonds Original Amount Outstanding at August 31, 2021 Senior Lien Bonds: 2013 Series A Bonds (Current Interest Bonds) $ 123,825,000 $ 123,825,000 2013 Series B Bonds (Capital Appreciation Bonds) 52,829,602 89,708,073 Subordinate Lien Bonds: 2013 TIFIA Loan 421,054,409 507,716,613 Total $ 597,709,011 $ 721,249,686 In addition to requirements for TIFIA approvals, reporting and administration, the 2013 TIFIA Loan agreement requires the Commission to use 50 percent of any surplus toll revenues to prepay the 2013 TIFIA Loan starting in June 2022. This “revenue sharing” with TIFIA reduces the Commission’s ability to use surplus toll revenues to fund additional SR-91 corridor projects. The 2013 TIFIA Loan agreement also imposes other conditions and restrictions on the Commission related to the financing and operation of the 91 Express Lanes. Since its opening in March 2017, the 91 Express Lanes reported strong financial results and generated surplus toll revenues to fund SR-91 corridor projects such as the 15/91 Express Lanes Connector and the SR-91 Corridor Operations Project. As stewards of the Commission’s local, state, and federal resources, staff is always seeking opportunities to advance more transportation projects in Riverside County (County) for the benefit of the traveling public and to get people working in the County and contributing to the local economy. Accordingly, at the March 11, 2020 meeting, the Commission approved a refinancing plan to issue refunding bonds to refund the 2013A Bonds and prepay the 2013 TIFIA Loan. The refinancing plan contemplated in 2020 was designed to accomplish several significant objectives of importance to the Commission: • Achieve debt service savings; • Refinance 2013 TIFIA Loan with toll revenue bonds—resulting in increased flexibility and ability, to the extent there are available surplus toll revenues, to fund and accelerate 1 In the case of the 2013B Bonds, the maturity value of the bonds includes the accreted interest since there are no current interest payment requirements with respect to those obligations. For the 2013 TIFIA Loan, interest payments are deferred until December 2021; therefore, the compounded interest is added to the principal balance. 54 Agenda Item 9 SR-91 corridor projects included in the 2019-2029 Western County Highway Delivery Plan approved by the Commission in July 2019; • Eliminate 2013 TIFIA Loan covenants and administrative burden; and • Put RCTC in greater control over the operation of the SR-91 corridor in Riverside County. Within hours of that approval, the municipal market and other financial markets began to deteriorate amid COVID-19 fears. Municipal bond yields and credit spreads skyrocketed, investors began pulling back, and uncertainty took hold. Accordingly, many prospective new issues such as the Commission’s refunding bonds were pulled until the municipal market and the economy stabilized. Staff, in consultation with its financial team, believes that the municipal market environment and economy have stabilized such that the Commission’s refinancing plan can move forward and be completed. PROPOSED REVISED REFINANCING PLAN The Commission successfully refinanced sales tax revenue bonds in October 2016, December 2017, and April 2018. Each transaction was a sound financial move for the Commission, and staff anticipates similar results with this proposed refinancing, which has been revised based on current market conditions and updated traffic and revenue projections based on COVID-19 impacts. The proposed refinancing plan still includes the refunding of the outstanding 2013A Bonds with fixed rate taxable bonds and the current prepayment of the outstanding 2013 TIFIA Loan with fixed rate tax-exempt bonds issued as both senior and second lien bonds. These 2021 Refunding Toll Bonds have maturities currently projected through June 2048, which is three years earlier than the final maturity of the 2013 TIFIA Loan. A senior lien taxable series of the 2021 Refunding Toll Bonds will advance refund the tax-exempt 2013A Bonds; a senior lien and second lien tax-exempt series of the 2021 Refunding Toll Bonds will prepay on a current basis the 2013 TIFIA Loan. While the municipal market has stabilized, the combination of current interest rates and COVID-19 impacts on the 91 Express Lanes traffic and revenues have necessitated additional financial engineering to achieve minimum debt service coverage levels required by the rating agencies. One of the financial tools available is a cash defeasance of certain outstanding bonds. In a cash defeasance, an issuer uses cash to purchase government securities for deposit in an escrow account held by a bank or trust company as escrow agent; such securities are irrevocably pledged to pay the outstanding bonds. The principal amount of such securities plus the interest earned is sufficient to pay the future debt service on the outstanding bonds. As a result, such bonds are deemed paid and no longer outstanding under the related indenture. The proposed revised refinancing plan is anticipated to include the cash defeasance of selected maturities of the outstanding 2013B Bonds using a portion of available 91 Express Lanes toll revenues designated as surplus. While the current financial model requires approximately $18.5 million of cash to achieve the minimum debt service coverage ratios expected to be 55 Agenda Item 9 required by the rating agencies, to preserve maximum flexibility staff suggests that a maximum amount not to exceed $25 million of toll revenues designated as surplus be available. The issuance of refunding bonds such as sales tax revenue bonds is generally not considered a complex transaction requiring significant financial development and modeling. However, the proposed toll revenue bond refinancing requires additional modeling for the following reasons: • Provide earlier access to potential surplus toll revenues; • Preserve the Commission’s current debt ratings of A-/BBB (S&P Global Ratings/Fitch Ratings) on the 91 Express Lanes toll revenue bonds; and • Maintain conservative debt service coverage levels. The financial team prepared a cash flow analysis comparing the projected debt service on the existing outstanding toll revenue bonds, including the 2013 TIFIA Loan, to the issuance of the 2021 Refunding Toll Bonds and cash defeasance of a portion of the 2013B Bonds. While actual results will vary depending on the specific market conditions at the bond sale date, the projected refinancing results shown in the analysis are: • An aggregate net present value savings of approximately $72.8 million; and • An aggregate net present value savings of 11.4 percent of the refunded debt. The projected net present value savings percentage of this refunding meets the debt management policy threshold of 3 percent of the par value of the refunded bonds. Further, these savings are above the metrics anticipated in 2020. Further, the refinancing provides the ability to amend provisions in the Master Indenture to provide the Commission with greater future flexibility, including but not limited to the following: • Provide greater flexibility to manage major repair and rehabilitation expenditures; • Remove the cap in permitted expenditures of the Capital Expenditures Fund and expand the definition of permitted expenditures to include SR-91 corridor projects; and • Other changes in definitions and certain terms. Such amendments require the consent of at least a majority of bondholders of the outstanding bonds following the issuance of the 2021 Refunding Toll Bonds. By their purchase of the 2021 Refunding Toll Bonds, the holders of the 2021 Refunding Toll Bonds representing more than a majority will have consented to the amendments. Staff recommends approval of the proposed revised refinancing plan to refund the 2013A bonds and prepay the 2013 TIFIA Loan through the issuance of the 2021 Refunding Toll Bonds and to defease with cash, in an amount not to exceed $25 million, selected maturities of the 2013B Bonds. 56 Agenda Item 9 The proposed refinancing of the 91 Express Lanes toll revenue debt does not preclude future issuances of toll revenue bonds to fund eligible projects. Optional Enhancement to Tender and/or Exchange Bonds The proposed revised refinancing plan includes the issuance of taxable and tax-exempt bonds. The tax-exempt bonds generally have lower interest costs; however, federal tax law enacted in December 2017 no longer allows the issuance of tax-exempt bonds to refund tax-exempt bonds more than 90 days before the refunded bonds can be called (i.e., an advanced refunding). Presently the proposed federal legislation does not include reinstatement of this authority. Consequently, in order to advance refund the tax-exempt 2013A Bonds, the Commission will issue taxable bonds as a replacement to these outstanding bonds at a lower interest rate. The interest earned by investors on the taxable refunding bonds is subject to federal taxation. In 2020, staff and the financial team considered an opportunity to enhance the refunding of the 2013A Bonds through an offer to purchase from current bondholders outstanding tax-exempt bonds − a transaction that would permit the issuance of replacement tax-exempt bonds at a lower rate than would otherwise be achieved as a taxable advance refunding. This opportunity was not pursued in the refinancing plan proposed in March 2020, as few comparable transactions had been recently completed at that time and the potential for costs savings was unclear. Since March 2020, staff has observed that several municipal issuers have successfully used the buyback option as part of their bond issuances and achieved greater savings. With these recent transactions, staff and the financial team believe that savings for the Commission’s proposed refinancing may be enhanced through a buyback of outstanding bonds that permits the refunding bonds to be issued as tax-exempt bonds on a current refunding basis. This would be accomplished through a tender and/or exchange offer to existing bondholders. The federal tax law changes in 2017 have resulted in a lack of supply of tax-exempt bonds in the municipal market, and staff believes the tender/exchange enhancement provides an opportunity for Commission bondholders to retain the tax advantages of holding RCTC tax-exempt bonds. Although there are modest additional costs associated with the buyback, most of the costs are contingent on executing a successful buyback. Any bonds not purchased via the buyback would still be eligible for refunding with taxable bonds, preserving the Commission’s flexibility. Further, the additional savings realized from the buyback are expected to greatly exceed those costs. Refinancing Documents Draft documents for the issuance of the 2021 Refunding Toll Bonds will be submitted to the rating agencies to obtain updated long-term debt ratings on the Commission’s 91 Express Lanes toll revenue debt prior to the Commission meeting. The proposed documents for this transaction will continue to be reviewed and revised for any matters that arise as a result of 57 Agenda Item 9 Commissioner input, rating agency reviews, and other matters. The preliminary official statement is expected to be posted within a few days of Commission approval, and the sale of bonds is currently scheduled for the week of September 27. Closing of this financing transaction, including cancellation of the TIFIA Bond, is expected on or around October 14. The drafts of the documents for the proposed 2021 Refunding Toll Bonds attached for the Commission’s adoption, ratification, and/or approval consist of the following: • Resolution No. 21-015 (draft) authorizing the issuance and sale of not to exceed $725 million aggregate principal amount of Riverside County Transportation Commission Toll Revenue Refunding Bonds in one or more series; the refunding, defeasance and purchase through tender offer of outstanding bonds or exchange therefor; the execution and delivery of one or more supplemental indentures, one or more purchase contracts, one or more official statements, one or more continuing disclosure agreements and one or more escrow agreements; one or more dealer manager agreements and one or more invitations to tender; and the taking of all other actions necessary in connection with this transaction (Attachment 1); • Preliminary Official Statement (draft) for the 2021 Refunding Toll Bonds (Attachment 2); • Continuing Disclosure Agreement (draft) between the Commission and the dissemination agent for the 2021 Refunding Toll Bonds (Attachment 3); • Third Supplemental Indenture (draft) between the Commission and the trustee regarding the terms and conditions of the issuance of the senior lien 2021 Refunding Toll Bonds, including amendments to the Master Indenture (Attachment 4); • Fourth Supplemental Indenture (draft) between the Commission and the trustee regarding the terms and conditions of the issuance of the second lien 2021 Refunding Toll Bonds (Attachment 5); • Bond Purchase Agreement (draft) between the Commission and BofA on behalf of the Underwriters regarding the purchase of the 2021 Refunding Toll Bonds (Attachment 6); and • Escrow Agreements (draft) between the Commission and US Bank, as the escrow agent for the refunding of the 2013A Bonds (Attachment 7) and the partial defeasance of the 2013B Bonds (Attachment 8). Since the drafts of the Continuing Disclosure Agreement, Third Supplemental Indenture, Fourth Supplemental Indenture, Bond Purchase Agreement, and Escrow Agreements were approved in March 2020, Resolution No. 21-015 provides for ratification, confirmation, and approval of the forms of these documents, including certain updates. Many of the above documents include bracketed text related to the optional enhancement for the tender and/or exchange buyback. During the period prior to the September Commission meeting, this optional enhancement will continue to be analyzed and evaluated. Should staff and the financial team determine that the buyback is likely to produce financial benefits, a draft 58 Agenda Item 9 dealer manager agreement and an invitation to tender will be included among the documents for Commission approval. Staff recommends adoption of Resolution No. 21-015; approval of the proposed form of the Official Statement, Continuing Disclosure Agreement, Third Supplemental Indenture, Fourth Supplemental Indenture, Bond Purchase Agreement, and Escrow Agreements; and authorization for the Executive Director to approve and execute the final forms of such documents. As part of the action to authorize the issuance of the 2021 Refunding Toll Bonds, the Commission will approve the form of the Preliminary Official Statement and authorize its distribution in connection with the sale of the refunding bonds, as well as the preparation of a final Official Statement once the bonds have been priced. These offering documents are required under state and federal securities laws regulating the offer and sale of securities – such as the 2021 Refunding Toll Bonds – and requiring all matters that would be material to an investor in the bonds to have been adequately disclosed with no omission of material facts. Furthermore, under rules of the Securities and Exchange Commission, the underwriters cannot purchase the bonds unless they have received a substantially final offering document, which discloses all material information that they reasonably believe to be true and correct. The Commissioners serving on the Board as the governing body of the issuer of the 2021 Refunding Toll Bonds are expected to read and be familiar with the information described in the draft Preliminary Official Statement included with this staff report. The Commissioners may employ the services of experts to take the lead in the drafting and review of the Official Statement and to provide financial projections included in the Official Statement; however, the Commissioners have the duty to review the information and bring to the attention of those responsible for the preparation of the offering document any material misstatements or omissions in the draft and to ask questions if they are unclear about the information or their role. Some members of the financing team will be available at the meeting to respond to the identification of any misstatements or omissions or to such questions. Refinancing Schedule Staff and Fieldman have developed a financing schedule that calls for the refunding bonds to be priced at the end of September and for the transaction to close in mid-October. That schedule is driven in large part because of the attractive rates and market environment for issuers since COVID-19. Two main factors contribute to the current strong market for issuers – historically low nominal interest rates and cash inflows to municipal bond funds. Additionally, as many issuers are refunding bonds and are using taxable rather than tax-exempt refunding bonds to do so, tax-exempt funds have even more needs to reinvest. 59 Agenda Item 9 Financing Team Development of the proposed refinancing plan required various professional services and investment banking firms. In December 2019, the Commission approved a pool of five investment banking firms to provide underwriting services to the Commission in connection with long-term debt financings. Finance staff, in consultation with Fieldman, selected BofA (bookrunner) and Goldman, as senior managers, and Wells, JPM, and Siebert, as co-managers, from this pool of qualified underwriters to participate in the negotiated debt sale process. BofA and Goldman served as senior managing underwriters in prior Commission financings and refundings. The other three firms (Wells, JPM, and Siebert) will serve as co-managers due to the size of the proposed transaction, as a larger group of underwriters yields additional benefits to the Commission in terms of selling the bonds. The estimated costs of issuance, including the underwriters’ discount and tender/exchange buyback fees, are summarized in Table 2. Table 2 − Total Estimated Costs of Issuance Role/Purpose Firm Amount Professional Services/Other: Bond counsel Orrick $ 370,000 Disclosure counsel Norton Rose 155,000 General counsel Best Best & Krieger LLP 30,000 Municipal advisor Fieldman 100,000 Trustee/Escrow agent US Bank 13,500 Rating agencies S&P Global Ratings, Fitch Ratings 274,000 Dissemination agent Digital Assurance Certification 2,500 Escrow verification agent Causey, Demgen & Moore 1,950 Publication and printing ImageMaster 5,000 Traffic and Revenue Consultant Stantec Consulting Services, Inc. 90,000 Independent Engineer Parsons Transportation Group, Inc. 30,000 Exchange/Tender (Buyback) Various 64,000 Issuer RCTC 380,000 Contingency Various 59,151 Subtotal—Professional Fees/Other 1,575,101 Underwriter’s discount BofA (bookrunner) and Goldman, as senior managers; Wells Fargo, JPM, and Siebert, as co-managers 2,925,719 Total Estimated Costs of Issuance $ 4,500,820 The estimated costs of issuance include approximately $358,000 of costs incurred and paid by the Commission through FY 2020/21; such costs consist of staff, general counsel, municipal advisory, rating agency, and miscellaneous. The contingency of $59,151, or 1.3 percent of total costs of issuance, relates to any miscellaneous costs related to financial and legal services, financial analysis, and other financing process matters that were not anticipated. 60 Agenda Item 9 In the following section, the estimated costs of issuance are disclosed as “Finance charge of the bonds” in accordance with state law. As the refinancing transaction and related process become more certain, the estimated costs used in the BofA analysis and the fee estimates will continue to be reconciled and adjusted as necessary in subsequent financial modeling iterations. The total estimated costs of issuance represent approximately 0.66 percent of estimated bond proceeds of $677.3 million. This is below the Commission’s debt management policy threshold of 2 percent. Staff recommends approval of the estimated costs of issuance of $4,500,820 for the 2021 Refunding Toll Bonds. Additionally, staff recommends approval of an amendment to the Orrick bond counsel agreement (Attachment 9) for an increase of $45,000 due to revisions to the legal agreements for the transaction. There is not sufficient capacity in the existing Orrick agreement for the additional fees; the other professional services agreements have sufficient capacity to absorb the above costs of issuance. Required State Disclosures For bonds with a term greater than 13 months, California Government Code (Code) Section 5852.1 requires the governing body to obtain and disclose certain information in a public meeting. The information needs to come from a good faith estimate from an underwriter, municipal advisor or private lender. The information required by Code Section 5852.1 is disclosed below and can be found in a good faith estimate summary (Attachment 10) provided by Fieldman, the Commission’s municipal advisor, based on the cash flow analysis prepared by BofA on behalf of the Underwriters. The good faith estimate and cash flow analysis assume the 2021 Refunding Toll Bonds are sold at an estimated $617.5 million principal amount of bonds issued based on market interest rates prevailing at the time of preparation of this information plus an anticipated original issuance premium of approximately $59.8 million, generating total proceeds of $677.3 million. Required Information Amount True interest cost of the bonds 3.04% Finance charge of the bonds (sum of all fees and charges paid to third parties) $4,500,820 Amount of bond proceeds received by Commission less the finance charge and any reserves or capitalized interest, excluding release of debt service reserve funds $619,272,161 Total payment amount (sum of all debt service payments through the final maturity plus any amount of the finance charge not paid from proceeds of the bonds) $1,057,097,978 Fiscal Impact The proposed revised refinancing plan currently anticipates estimated net present value debt service savings of $72.8 million, which is 11.4 percent of the par amount of the refunded bonds. This is above the minimum threshold of 3 percent per the Commission’s debt policy. These savings do not include the potential savings from the optional enhancement related to the 61 Agenda Item 9 tender/exchange buyback. Finally, this plan eliminates the various 2013 TIFIA Loan requirements and allows RCTC to use toll revenues designated as surplus to fund more projects on the SR-91 corridor. Staff included the proposed refinancing in the FY 2021/22 budget; however, the bond proceeds in the current financial model anticipate approximately $9,800,000 of additional bond proceeds and no amount was included for the cash defeasance of selected 2013B Bonds. Accordingly, staff recommends adjustments to the FY 2021/22 budget in the amounts of $9,800,000 to increase bond proceeds and $25,000,000 to increase debt service expenditures for the cash defeasance of a portion of the 2013B Bonds using 91 Express Lanes toll revenues designated as surplus. Financial Information In Fiscal Year Budget: Yes Yes No No Year: FY 2021/22 FY 2021/22 FY 2021/22 FY 2021/22 Amount: $667,578,000 (proceeds) $647,260,500 (expenditures) $9,800,000 (proceeds) $25,000,000 (expenditures) Source of Funds: Toll revenue refunding bonds, debt and 91 Express Lanes toll revenues designated as surplus Budget Adjustment: No No Yes Yes GL/Project Accounting No.: 591-31-59101 $617,535,000 (refunding bond proceeds) 591-31-59103 $59,799,000 (premium from bond proceeds 591-31-96101 $156,200,000 (payment to escrow agent for refunded bonds) 591-31-9XXXX $503,338,000 (prepayment of 2013 TIFIA Loan) 591-31-96103 $2,926,000 (costs of issuance related to underwriter’s discount) 591-31-65XXX $1,570,000 (costs of issuance related to professional services) Fiscal Procedures Approved: Date: 08/13/2021 Attachments: (Click on this Link https://www.rctc.org/wp-content/uploads/2021/08/9.A1-A10- Toll-Refinancing-Documents.pdf to Access the Attachments) 1) Resolution No. 21-015 (draft) 2) Official Statement (draft) 3) Continuing Disclosure Agreement (draft) 4) Third Supplemental Indenture (draft) 5) Fourth Supplemental Indenture (draft) 6) Bond Purchase Agreement (draft) 7) Escrow Agreement for 2013A Bonds (draft) 8) Escrow Agreement for 2013B Bonds (draft) 9) Orrick Agreement No. 05-19-510-18 (draft) 10) SB 450 Good Faith Estimate as of August 12, 2021 62 REFINANCING OF RCTC 91 EXPRESS LANES TOLL DEBT 1 Theresia Trevino, Chief Financial Officer Why Refinance Now AUGUST 23, 2021 2 Current Market Conditions •Municipal market and economy have stabilized •Low interest rates and cash inflows to municipal bond funds Benefit to RCTC Reduce interest costs Eliminate TIFIA loan restrictions Ensure local control and future flexibility Current 91 Express Lanes Toll Debt AUGUST 23, 2021 3 Toll Revenue Bonds Original Amount Outstanding at August 31, 2021 Senior Lien Bonds: 2013 Series A Bonds (Current Interest Bonds) $ 123,825,000 $ 123,825,000 2013 Series B Bonds (Capital Appreciation Bonds) 52,829,602 89,708,073 Subordinate Lien Bonds: 2013 TIFIA Loan 421,054,409 507,716,613 Total $ 597,709,011 $ 721,249,686 Refinancing Process AUGUST 23, 2021 4 Plan of Finance •Finance Team •Debt structuring Documentation •Legal documents •Resolution •Indenture •Official Statement Credit Analysis •Presentation •Rating Board approval •Refinancing plan •Legal documents •Official Statement Sale of Bonds •Investor marketing •Pricing and sale •Official Statement •Closing Financing Team AUGUST 23, 2021 5 RCTC Municipal Advisor General Counsel Bond & Disclosure Counsel Underwriter Syndicate Underwriter’s Counsel Rating Agency(s) Trustee/Escrow Agent Other Specialists, as required Proposed 2021 Refinancing Plan AUGUST 23, 2021 6 Toll Revenue Debt: 2013A Bonds & TIFIA Loan •$123.8 million Current Interest Bonds (2013A Bonds) •$507.7 million TIFIA loan •Burdensome TIFIA restrictions and administration Issue 2021 Refunding Toll Bonds •$617.5 million bonds (par amount) •$60 million premium •Amend certain provisions Cash defeaseportion of 2013B Bonds •Use toll revenue surplus funds •Not to exceed $25 million Achieve debt service savings •$72.8 million net present value •11.4% of refunded debt Flexibility to fund or accelerate 91 corridor projects Preliminary, subject to change Refinancing Sources and Uses AUGUST 23, 2021 7 Refund 2013A Bonds Prepay 2013 TIFIA Loan Defease 2013B Bonds Amounts in $000s SERIES 2020A (Senior Lien Taxable) SERIES 2020B (Senior Lien Tax-Exempt) SERIES 2020C (Second Lien Tax-Exempt) RCTC CONTRIBUTION TOTAL SOURCES Par Amount $148,200 $383,390 $85,945 -$617,535 Premium -47,345 12,453 -59,798 TIFIA Reserve Release -19,976 --19,976 Funds on Hand 1,780 --$18,510 20,290 TOTAL SOURCES $149,980 $450,711 $98,398 $18,510 $717,599 USES Escrow Deposit $137,689 $414,020 $89,319 $18,511 $659,539 Debt Service Reserve Fund 989 33,881 8,452 -43,322 Capitalized Interest 10,238 ---10,238 Costs of Issuance 1,064 2,810 627 (1)4,500 TOTAL USES $149,980 $450,711 $98,398 $18,510 $717,599 Preliminary, subject to change Optional Enhancement AUGUST 23, 2021 8 •Tax -exempt •Will be refunded with taxable bond unless… 2013A Bond •Tax -exempt •Lower interest rate than taxable refunding bond 2021B Bond Tender and/or Exchange Required Disclosures AUGUST 23, 2021 9 Required Information Amount (March 2020) Amount (Today) True interest cost of the bonds 3.27%3.04% Costs of issuance, including underwriter’s discount $3,723,592 $4,500,820 Amount of bond proceeds less costs of issuance, reserves and capitalized interest, excluding release of debt service reserve funds $605,197,731 $619,272,161 Total debt service payments through the final maturity $1,075,426,226 $1,057,097,978 Preliminary, subject to change 2020 Refinancing Documents and Approvals AUGUST 23, 2021 10 Refinancing Bonds Resolution No. 21-015 Official Statement Continuing Disclosure Agreement 3rd and 4th Supplemental Indentures Negotiated Bond Sale Bond Purchase Agreement Escrow Deposit Escrow Agreements Costs of Issuance Estimated Costs Professional Services Agreement Amendment 2020 Refinancing Timeline AUGUST 23, 2021 11 •8/23 B&I approval •9/2 Rating presentations •9/14 Ratings received •9/15 Commission approval •9/16 POS posted •9/27-28 Bond pricing and sale •10/13 Financial close Preliminary, subject to change Staff Recommendations AUGUST 23, 2021 12 •Approve refinancing plan to refund 2013A Bonds and prepay 2013 TIFIA Loan and cash defeasance of portion of 2013B BondsNo. 1-3 •Adopt Resolution No. 21-015 No. 4 •Approve Preliminary Official Statement and transaction legal documents No. 5-9 •Approve costs of issuance •Approve professional services agreement amendments No. 10-11 •Approve budget adjustments No. 12 •Debt service savings •No TIFIA restrictions •More local control 13 DISCUSSION AGENDA ITEM 10 Agenda Item 10 RIVERSIDE COUNTY TRANSPORTATION COMMISSION DATE: August 23, 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; and 2) Forward to the Commission for final action. DISCUSSION: State Update The Legislature returned from their monthlong summer recess on August 16, 2021, with only a few weeks left in this first year of the two-year legislative session. As the September 10 deadline to pass legislation fast approaches, legislators will be finalizing budget trailer bills associated with the enacted 2021-22 state budget and other policy legislation. Governor Newsom has already signed over 140 bills since July 15, 2021, with hundreds more expected to pass the Legislature over the next few weeks. High-Speed Rail Budget Update One of the issues that still required a resolution once the legislature returned from summer recess was further consideration of Governor Newsom’s request for $4.2 billion to finish building the first section of high-speed rail track, a 119-mile stretch in the Central Valley. The Legislature left the funds out of the June budget, pending further negotiation. Some lawmakers, including some in Southern California, have indicated that more of the funds should be spent on local transit projects in more populated areas, the “bookends” of the high-speed rail system, of Los Angeles and San Francisco areas. While support exists in the legislature for the High-Speed Rail project, it is unclear if the Governor’s $4.2 billion request will be approved by the Legislature. Climate Action Plan for Transportation Infrastructure Update On July 12, 2021, after months of stakeholder outreach and drafting, the California State Transportation Agency (CalSTA) released their finalized Climate Action Plan for Transportation Infrastructure (CAPTI) detailing how the state intends to invest billions of discretionary transportation dollars annually to combat and adapt to climate change. CAPTI was developed in 63 Agenda Item 10 response to Governor Newsom’s climate action executive orders N-19-19 and N-79-20. State transportation funds, including revenue collected under Senate Bill (SB) 1, the Road Repair and Accountability Act of 2017, must be used solely on transportation. As outlined in SB 1, California will continue the “fix-it-first” approach to maintaining the state’s highways, roads, and bridges. According to CalSTA, however, under the new strategy adopted in July, where feasible and within existing funding program structures, the state will invest discretionary transportation funds in sustainable infrastructure projects that align with its climate, public health, and social equity goals. As previously reported to the Commission, RCTC staff participated in numerous discussions and workshops regarding the drafting of CAPTI, which culminated in public comment letter to CalSTA Secretary David Kim on May 17, 2021, seeking regional variation in its implementation. Exactly how CAPTI will be incorporated into transportation project funding assessments is unclear. However, staff will continue to participate the process, as subsequent guidelines are developed, to advocate for transportation funding in Riverside County. Federal Update Senate Bipartisan Surface Transportation Reauthorization Bill A bipartisan group of 10 Senators announced agreement on an infrastructure package backed by President Biden on July 29, 2021, that authorizes a roughly $1.2 trillion physical infrastructure package including $550 billion in new spending over five years. Based largely on the bipartisan surface transportation reauthorization bills passed out of the Senate Committee on Environment and Public Works and the Senate Committee on Commerce, Science and Transportation, this Infrastructure Investment and Jobs Act is significantly smaller than the $2.25 trillion infrastructure proposal President Biden unveiled in March. On August 10, 2021, the Senate passed the Infrastructure Investment and Jobs Act which extends highway, safety, transit, rail, pipeline, and research programs that are typically included in five-year surface transportation reauthorizations. It also includes provisions to address climate change, authorize programs to enhance the electric grid, and replace lead pipes. Transportation-specific funding includes: • $349 billion in funding for federal highway and major projects programs. It also includes $40 billion for a new formula Bridge Investment Program; • $66 billion in funding for passenger and freight rail programs; • $11 billion to fund highway and pedestrian safety programs; and • $91 billion to modernize and expand public transit systems. Among many other priorities, the bill also includes: • $46 billion to fund waste management, flood mitigation, wildfire, drought and coastal resiliency; • $55 billion for water infrastructure; 64 Agenda Item 10 • $73 billion for power and grid Energy Infrastructure Act; • $65 billion to rebuild the electric grid; • $25 billion for airport improvements; • $65 billion to expand broadband Internet access; and • $7.5 billion for electric vehicles and low-carbon school busses and ferries. While the bipartisan Infrastructure Investment and Jobs Act identified the funding sources, or “pay-fors,” to fund the $550 billion spending increase, the Congressional Budget Office, which officially scores the cost of federal legislation, reported that the infrastructure plan would add $256 billion to the projected federal deficit over the next 10 years. In addition, the bipartisan Infrastructure Investment and Jobs Act is significantly different from the policies contained in the House-passed INVEST in America Act (INVEST Act) and does not include earmarks. It was unclear when the Senate passed its infrastructure bill how well received it would be in the House or timeline for a vote there. House majority leadership has indicated a vote on the Infrastructure Investment and Jobs Act would coincide with consideration of the budget reconciliation legislation, which is under development in the Senate. The one-year extension of the last five-year surface transportation reauthorization, the Fixing America's Surface Transportation Act (FAST Act), will expire on September 30, 2021. Attachments: 1) Legislative Matrix 2) CAPTI Comment Letter – Dated May 17, 2021 65 RIVERSIDE COUNTY TRANSPORTATION COMMISSION - POSITIONS ON STATE AND FEDERAL LEGISLATION – AUGUST 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. Passed Senate Appropriations July 15, 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). Hearing canceled at the request of author. Now a two-year bill. April 26, 2021 SUPPORT Staff action based on platform April 5, 2021 SB261 (Allen) This bill would require that the sustainable communities strategy be developed to additionally achieve greenhouse gas emission reduction targets for the automobile and light truck sector for 2045 and 2050 and vehicle miles traveled reduction targets for 2035, 2045, and 2050 established by the board. The bill would make various conforming changes to integrate those additional targets into regional transportation plans. Senate Transportation Committee - hearing postponed by committee. Now a two-year bill. April 27, 2021 OPPOSE May 12, 2021 FederalHR 972 (Calvert) This bill establishes the Western Riverside County Wildlife Refuge which would provide certainty for development of the transportation infrastructure required to meet the future needs of southern California. Ordered Reported by the House Committee on Natural Resources July 14, 2021 SUPPORT Staff action based on platform June 11, 2021 ATTACHMENT 1 66 May 17, 2021 The Honorable David Kim Secretary California State Transportation Agency 915 Capitol Mall, Suite 350B Sacramento, California 95814 Re: CAPTI Implementation Public Comment Dear Secretary Kim: The Riverside County Transportation Commission (RCTC), both in its position as the regional transportation planning agency and as the administrator of a local voter-approved sales tax measure dedicated to transportation improvements in Riverside County, has participated in numerous briefings regarding California State Transportation Agency’s (CalSTA) development of the Climate Action Plan for Transportation Infrastructure (CAPTI or Plan). As CalSTA developed the Plan’s goals and strategies based on Governor Newsom’s Executive Orders N-19-19 and N-79-20, RCTC staff provided feedback and comments to ensure the Plan could feasibly and equitably be implemented in growing suburban/rural regions like Riverside County. RCTC supports CAPTI’s efforts to reduce pollution and provide safe walking, biking, and transit access. Indeed, RCTC has led the way in many of these efforts within Riverside County. Our local sales tax measure, Measure A, funds improvements for all transportation modes, including on highways, public transit, rideshare alternatives, local streets, and even habitat preservation. Our residents have invested considerable local tax dollars that have not only provided operational improvement to the state’s highway system but extended Metrolink commuter rail service via the 91/Perris Valley Line, the first new Metrolink extension to open since 1994. The 24-mile extension of Metrolink was designed to reduce traffic congestion on Interstate 215 and improve transit options for southwestern Riverside County residents. RCTC has successfully delivered a diverse portfolio of transportation projects in Riverside County for decades because of the financial investment our residents make to improve the region’s transportation system. These funds kept critically needed projects funded when state and federal funds ran dry. Also, these local funds, leveraged with available state and federal resources, ensure our region has the transportation infrastructure that is directly responsive to the needs of our diverse communities. ATTACHMENT 2 67 The Honorable David Kim May 17, 2021 Page 2 With the CAPTI, however, the state appears ready to prescribe how and when transportation should be delivered without regard for transportation needs in our region. Likewise, the Plan does not help or incentivize the relocation of job centers to communities doing more than their fair share to address the state’s affordable housing shortage. While the state’s emphasis has been on bringing in-fill housing to urban centers, equal emphasis should also be placed on bringing “in-fill” jobs to predominantly residential centers. To do so would reduce the need for long commutes outside our region and facilitate a shift in regional transportation planning away from long-distance inter-county highway commutes to more localized transit and active transportation improvements. Commuter traffic is not the only contributor to our region’s roadway congestion. The ever- increasing movement of goods through inland southern California takes a substantial toll on our air, roadways, and infrastructure. According to the Southern California Association of Governments, 32 percent of all containers entering the country come through the San Pedro Bay Ports, and the total container volume is expected to increase by 120 percent to over 34 million containers by 2045. Inland southern California is a thoroughfare for goods and freight movement to the rest of the country via four interstate highways and state routes, three airports, and 11 rail lines and subdivisions with an associated intermodal terminal and three railyards. Warehousing square footage in southern California exceeds 1.2 billion and 50 percent of these warehouses are located within five miles of State Route 60. The majority of new warehousing growth is in inland southern California due to the region having the most developable land zoned for industrial use. As a result, Interstate 10, Interstate 15, State Route 60, and State Route 91 averaged over 25,000 truck trips per day as of 2016. Goods movement, coastal and urban job-center locations, and population growth due to availability of affordable housing put a substantial strain on our region’s transportation network. Local, regional, and state collaboration is necessary before state agencies can implement the CAPTI strategies. For these reasons, RCTC provides the following comments to the draft Plan: One-size does not fit all: RCTC’s concerns with CAPTI are rooted in the potential that CalSTA, Caltrans, the California Transportation Commission (CTC), and other state agencies will implement the Plan in a one-size-fits- all approach that does not consider local issues and needs. Riverside County, for example, is known for its affordable living, vibrant communities, and preserved open spaces. For these reasons, we are among the fastest- growing counties in the state. However, with this level of population growth, our residents also have among the longest daily commutes in California. A report published in 2019 based on U.S. Census data found that two Riverside County cities – Corona and Moreno Valley – are among the top 10 cities in the entire nation for average round-trip commute time (73.4 and 68.6 minutes, respectively). Highway congestion represents one of the top 10 concerns for our residents. The following Implementation Strategies will require ongoing collaboration with agencies like RCTC: • S5.2 Update SHOPP and SB 1 Competitive Program Guidelines to Incentivize Climate Adaptation and Climate Risk Assessments/Strategies 68 The Honorable David Kim May 17, 2021 Page 3 • S6.1 Explore New Mechanisms to Mitigate Increases in Vehicle Miles Travelled (VMT) from Transportation Projects Maintain the State’s integrity with the voters by delivering on the Senate Bill 1 promises: As CTC Commissioners and industry organizations have stated, SB 1 was courageously passed by the legislature in 2017 after decades of inaction to increase transportation funding. SB 1 promised to reinvest in the dilapidated state- owned facilities that our state’s residents, visitors, and economy rely on for their livelihoods. The funding from SB 1 promised to propel our state’s transportation system forward is solely provided by vehicle owners as they register their vehicles and purchase fuel. The CAPTI indicates a commitment to SB 1’s fix-it-first approach. However, we note the following Implementation Strategies that promise significant scrutiny will be placed on future highway project investments while CTC, Caltrans, and CalSTA reconsider guidelines for programs, including SCCP and TCEP that jeopardies the intent of SB 1. • S1.4 Mainstream Zero-Emission Vehicle Infrastructure within the Trade Corridor Enhancement Program • S2.4 Increase Funding to Active Transportation Program • S4.1 Develop and Implement the Caltrans Strategic Investment Strategy to Align Caltrans Project Nominations with the CAPTI Investment Framework • S4.5 Develop and Implement Caltrans Climate Action Plan • S4.6 Incorporate Zero-Emission Freight Infrastructure Needs into the California Freight Mobility Plan • S5.2 Update Transportation Infrastructure Competitive Program Guidelines to Incentivize Climate Adaptation and Climate Risk Assessments/Strategies • S6.3 Develop Interagency Framework for Project Evaluation Around Advancing Sustainable Communities • S7.1 Leverage Transportation Investments to Incentivize Infill Housing Production Local control, investment, and resources: Embedded in the CAPTI is a general theme that CalSTA, Caltrans, and CTC will prioritize funding for non-highway projects even when local voter-approved measures seek to make improvements to the state’s highway system. The Plan also seeks to create stakeholder workgroups, including one that will evaluate roadway pricing that could impact local toll collection. The state cannot inhibit the implementation of RCTC’s voter-approved project portfolio or interfere with toll pricing activities established by local independent authorities, like RCTC, without its approval. • S6.2 Convene a Roadway Pricing Working Group to Provide State Support for Implementation of Local and Regional Efforts Confronting inequities, reducing harms, and increasing benefits: RCTC joins CalSTA in its sincere efforts to right the wrongs of past transportation decisions that have instituted and perpetuated inequities and disadvantages, particularly to disadvantaged, low-income, and Black, Indigenous, and People of Color (BIPOC) individuals and communities. It is critically important that the CAPTI Investment Framework and Investment Strategies not continue to unintentionally harm the very individuals and communities we seek to uplift. In suburban and rural areas where housing is more available and affordable, social, and racial inequities will be perpetuated by divesting from the state highway system when a disproportionately high number of disadvantaged, low-income, 69 The Honorable David Kim May 17, 2021 Page 4 and BIPOC individuals rely on this system to get to jobs in urban areas. CalSTA should therefore revisit the following Investment Framework Guiding Principles to recognize that social and racial inequities exist all over the state, not just in the urban cores, and that the inequities look different in various parts of the state: • “Strengthening our commitment to social and racial equity by reducing public health and economic harms and maximizing community benefits” • “Promoting projects that do not significantly increase passenger vehicle travel” • “Promoting compact infill development while protecting residents and businesses from displacement” • “Developing a zero-emission freight transportation system” No transportation-land use connections without including jobs: As the CAPTI acknowledges, transportation projects are envisioned sometimes decades before they are ever delivered. The significant challenges involved with the environmental phase alone promise transportation improvements are not delivered until well-after they were needed. Acknowledging this unfortunate reality, the notion that “if you build it, they will come” is one of the distant past. Over the last two decades, the exponential population increases seen in Riverside County created a jobs-housing imbalance that leaves RCTC holding the bag. We do not have statutory authority over land-use decisions or job creation efforts. CAPTI Investment Strategy S7 to Strengthen Transportation-Land Use Connections harms areas like Riverside County that are doing their part to address the housing shortage in our state. In conclusion, we stand ready to work with you on implementing the CAPTI goals, but we request that CalSTA allows for regional variation on the implementation methodology, protects the original intent of SB 1, and ensures the state continues transportation investment, including on highways, in our region. Many of the goals set forth in CAPTI are commendable and critical to addressing the challenges of the 21st century. However, it contains the fatal flaw of infeasibility. The Plan does not recognize the staggering investments the state must make—not just in coastal urban centers, but also in more inland regions—in order to successfully secure an equitable and climate-resilient future for all. With good intent, the Plan instead applies stringent guidelines for existing funding that inland regions will struggle to meet. As a result, CAPTI as currently written would leave the very people it seeks to serve, behind. I look forward to continuing this very important discussion and working with you towards implementing policies that enhance, not inhibit, transportation in Riverside County. Sincerely, Anne Mayer Executive Director 70 RIVERSIDE COUNTY TRANSPORTATION COMMISSION BUDGET AND IMPLEMENTATION COMMITTEE ROLL CALL AUGUST 23, 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: August 18, 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. 9 - Refinancing of 91 Express Lanes Toll Debt Consultant(s): Orrick, Herrington, & Sutcliffe LLP Devin Brennan, Partner 405 Howard Street San Francisco, CA 94105