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HomeMy Public PortalAbout02 February 28, 2005 Budget & Implementation• • • RIVERSIDE COUNTY TRANSPORTATION COMMISSION BUDGET AND IMPLEMENTATION COMMITTEE MEETING AGENDA q)1�� TIME: 10:00 a.m. DATE: Monday, February 28, 2005 LOCATION: Board Chambers County Administrative Center 4080 Lemon Street, 1St Floor Riverside, CA 92501 RECORDS ***COMMITTEE MEMBERS*** Terry Henderson, Chair / Don Adolph, City of La Quinta Bob Magee Vice Chair / Robert L. Schiffner, City of Lake Elsinore Barbara Hanna / Art Welch, City of Banning Roger Berg / Jeff Fox, City of Beaumont Robert Crain / George Thomas, City of Blythe Gregory S. Pettis / Paul Marchand, City of Cathedral City Juan M. DeLara / Richard Macknicki, City of Coachella Matt Weyuker / Henry "Hank" Hohenstein, City of Desert Hot Springs Kelly Seyarto / Jack van Haaster, City of Murrieta Ron Meepos / Harvey Gerber, City of Rancho Mirage Ameal Moore / Steve Adams, City of Riverside Chris Buydos / Jim Conner, City of San Jacinto John F. Tavaglione, District Two/ County of Riverside Jeff Stone, District Three / County of Riverside ***STAFF*** Eric Haley, Executive Director Marilyn Williams, Director of Regional Programs and Public Affairs ***AREAS OF RESPONSIBILITY*** Annual Budget Development and Oversight Countywide Strategic Plan Legislation Measure "A" Implementation and Capital Programs Public Communications and Outreach Programs Competitive Grant Programs: TEA 21-CMAQ & STP, Transportation Enhancement and SB 821 -Bicycle & Pedestrian Property Management SAFE/Freeway Service Patrol TUMF Program and other areas as may be prescribed by the Commission Comments are welcomed by the Committee. If you wish to provide comments to the Committee, please complete and submit a Testimony Card to the Clerk of the Commission • • • RIVERSIDE COUNTY TRANSPORTA TION COMMISSION BUDGET AND IMPLEMENTATION COMMITTEE www.rctc.org AGENDA* *Actions may be taken on any item listed on the agenda 10:00 a.m. Monday, February 28, 2005 BOARD CHAMBERS County Administrative Center 4080 Lemon Street, P` Floor Riverside, California In compliance with the Americans with Disabilities Act and Government Code Section 549542, if you need special assistance to participate in a Committee meeting, please contact the Clerk of the Commission at (951) 787-7141. Notification of at least 48 hours prior to meeting time will assist staff in assuring that reasonable arrangements can be made to provide accessibility at the meeting. 1. CALL TO ORDER 2. ROLL CALL 3. PUBLIC COMMENTS 4. APPROVAL OF MINUTES 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.) Budget and Implementation Committee February 28, 2005 Page 2 • 6. CONSENT CALENDAR - All matters on the Consent Calendar will be approved in a single motion unless a Commissioner(s) requests separate action on specific item(s). Items pulled from the Consent Calendar will be placed for discussion at the end of the agenda. 6A. INTERFUND LOAN ACTIVITY REPORT Overview This item is for the Committee to: Pg. 1 1) Receive and file the Interfund Loan Activity Report for the month ended January 31, 2005, and 2) Forward to the Commission for final action. 6B. QUARTERLY INVESTMENT REPORT Overview This item is for the Committee to: Pg. 3 1) Receive and file the Quarterly Investment Report for the quarter ending December 31, 2004, and 2) Forward to the Commission for final action. 7. COUNTY OF RIVERSIDE TRANSPORTATION ENHANCEMENT FUNDS REQUEST Pg. 13 Overview This item is for the Committee to: 1) Approve an additional $286,119 of TEA funds for the County of Riverside's I-10/Monterey and I-10/Washington interchange landscaping project; and 2) Forward to the Commission for final action. • • Budget and Implementation Committee February 28, 2005 Page 3 • 8. APPROVE AGREEMENT #05-51-542 WITH MARCH JOINT POWERS AUTHORITY FOR THE EXCHANGE OF PROPERTY RELATED TO THE SAN JACINTO BRANCH LINE Pg. 16 Overview This item is for the Committee to: 1) Approve Agreement #05-51-542 with March Joint Powers Authority (JPA) for the exchange of property related to the San Jacinto Branch Line (APN#'s 297-160-002 and portions of 294- 060-005, 297-110-004, and 297-100-003); 2) Authorize the Chairman, pursuant to Legal Counsel review, to execute the agreement on behalf of the Commission; and 3) Forward to the Commission for final action. • • 9. SURPLUS CORONA DEPOT Overview This item is for the Committee to: Pg. 19 1) Declare the property identified as the Corona Depot, (.97 acres) located at 150 Depot Drive in Corona, APN # 119-320-039 as surplus, as shown on the attached map; 2) Authorize staff to initiate the sixty (60) day public agency notification period and if no interest is expressed, authorize the Executive Director to offer the parcel for sale; and 3) Forward to the Commission for final action. 10. ANNUAL INVESTMENT POLICY REVIEW Overview This item is for the Committee to: 1) Adopt the Investment Policy, and 2) Forward to the Commission for final action. Pg. 22 Budget and Implementation Committee February 28, 2005 Page 4 11. PROPOSED POLICY GOALS AND OBJECTIVES FOR FISCAL YEAR 2005/06 BUDGET Pg. 31 Overview This item is for the Committee to: 1) Approve the proposed Commission Policy Goals and Objectives for the Fiscal Year 2005/06 Budget, and 2) Forward to the Commission for final action. 12. FISCAL YEAR 2003/04 TDA AND MEASURE A AUDIT RESULTS Overview This item is for the Committee to: Pg. 38 1) Receive and file the preliminary Transportation Development Act (TDA) and Measure A audit results report for the Fiscal Year 2003/04, and 2) Forward to the Commission for final action. 13. STATE AND FEDERAL LEGISLATIVE UPDATE Overview This item is for the Committee to: Pg. 55 1) Adopt the following bill positions and associated policy positions: SUPPORT — ACA 9 (Bogh) & ACA 11 (Oropeza); 2) Receive and file the state and federal legislative update; and 3) Forward to the Commission for final action. 14. ITEMS PULLED FROM CONSENT CALENDAR AGENDA • • • Budget and Implementation Committee February 28, 2005 Page 5 • 15. ELECTION OF OFFICERS 16. COMMISSIONERS / STAFF REPORT Overview 1) This item provides the opportunity for the Commissioners and staff to report on attended and upcoming meeting/conferences and issues related to Commission activities. 17. ADJOURNMENT AND NEXT MEETING The next Budget and Implementation Committee meeting is scheduled to be held at 10:00 A.M., Monday, March 28, 2005, Board Chambers, 1st Floor, County Administrative Center, 4080 Lemon Street, Riverside. • • AGENDA ITEM 4 • Minutes • • • RIVERSIDE COUNTY TRANSPORTATION COMMISSION BUDGET AND IMPLEMENTATION COMMITTEE "COMMITTEE AS A WHOLE" (Due to lack of a quorum, the Commissioners present operated as a "Committee as a Whole". Recommendations from the Committee as a Whole were submitted to the Commission.) Monday, January 24, 2005 MINUTES 1. CALL TO ORDER Chair Terry Henderson called the "Committee as a Whole" to order at 10:05 a.m., in the Board Chambers at the County of Riverside Administrative Center, 4080 Lemon Street, First Floor, Riverside, California, 92501. 2. ROLL CALL Members/Alternates Present Members Absent Juan DeLara Barbara Hanna Terry Henderson Bob Magee Ron Meepos Kelly Seyarto John F. Tavaglione Roger Berg Chris Buydos Robert Crain Ameal Moore Gregory Pettis Jeff Stone Matt Weyuker 3. PUBLIC COMMENTS There were no requests from the public to speak. 4. ADDITIONS / REVISIONS There were no additions or revisions to the agenda. 5. APPROVAL OF MINUTES — October 25, 2004 Approval of the minutes was deferred until the next meeting when there is a quorum present. Budget and Implementation Committee Meeting January 24, 2005 Page 2 6. CONSENT CALENDAR M/S/C (Seyarto/Magee) to present the following Consent Calendar items to the Commission for approval. 6A. SINGLE SIGNATURE AUTHORITY REPORT Receive and file the Single Signature Authority Report for the second quarter ended December 31, 2004. 6B. QUARTERLY FINANCIAL STATEMENTS Receive and file the Quarterly Financial Statements for the six-month period ended December 31, 2004. 7. CALTRANS COOPERATIVE AGREEMENT NO. 8-1259 (RCTC AGREEMENT NO. 05-31-538) FOR RIGHT-OF-WAY ACQUISITION FOR THE GREEN RIVER DRIVE INTERCHANGE BRIDGE ON STATE ROUTE 91 Shirley Medina, Program Manager, explained the need for a cooperative agreement with Caltrans to authorize right-of-way acquisition for the Green River Drive interchange bridge project using Regional Improvement Program funds. M/S/C (Tavaglione/Magee) to recommend to the Commission to authorize the Executive Director, pursuant to Legal Counsel review, to execute Cooperative Agreement No. 8-1259 (RCTC Agreement No. 05-31-538) with the Department of Transportation to perform right-of- way acquisition for the Green River Drive Interchange Bridge on State Route 91. 8. MODEL TRANSPORTATION UNIFORM MITIGATION FEE (TUMF) REGIONAL ARTERIAL FUNDING AGREEMENT Marilyn Williams, Director of Regional Programs and Public Affairs, presented the model TUMF regional arterial funding agreement, highlighting the terms and conditions for reimbursement. • • • Budget and Implementation Committee Meeting January 24, 2005 Page 3 • • • Commissioner Bob Magee requested RCTC staff assistance in reviewing the SR 74/1-15 interchange improvement project. City of Lake Elsinore staff states that the project is an interim improvement that qualifies for TUMF funding. However, Caltrans and WRCOG believe the project is a temporary improvement. Eric Haley stated that staff will be glad to assist and review the project. M/S/C (Seyarto/Meepos) to recommend to the Commission to: 1) Approve the Model TUMF Regional Arterial Funding Agreement between the Commission and local jurisdictions; and, 2) Authorize the Chairman, pursuant to Legal Counsel review, to execute said agreements as they are finalized over time provided that they do not contain any substantive changes to the model agreement terms and conditions. 9. MID -YEAR BUDGET ADJUSTMENTS Michele Cisneros, Accounting Manager, reviewed the mid -year budget adjustments. At Commissioner Kelly Seyarto's request to clarify the purchase of property for the Mid County Parkway project, Cathy Bechtel explained that it is for additional property originally not anticipated for the project. M/S/C (Seyarto/Magee) to recommend to the Commission to approve an increase of: 1) $ 589,300 in Measure "A" Coachella Valley Specialized Transit appropriations for transit operations; 2) $3,993,216 in Transportation Uniform Mitigation Fee (TUMF) appropriations for right -of way acquisition; 3) $85,500 in administration appropriations for furniture, office equipment, and leasehold improvements; and, 4) $20,000 in administration appropriations for additional liability insurance. Budget and Implementation Committee Meeting January 24, 2005 Page 4 10. MID -YEAR REVENUE PROJECTIONS Theresia Trevino, Chief Financial Officer, reviewed the mid -year revenue projections and related budget adjustments. M/S/C (Tavaglione/DeLara) to recommend to the Commission to approve the: 1) Mid -Year Revenue Projections; 2) Budget adjustments to reflect the revised Measure "A" revenues of $10,400,000 and expenditures of $5,141,000; and, 3) Budget adjustments to reflect the revised Local Transportation Fund (LTF) Planning revenues of $210,480 and expenditures of $ 210,480. 11. FISCAL YEAR 2005-2006 LOCAL TRANSPORTATION FUND AND MEASURE "A" REVENUE PROJECTIONS Theresia Trevino reviewed the projections for LTF apportionment and Measure "A". M/S/C (Tavaglione/Meepos) to recommend to the Commission to approve the: 1) Projections of the Local Transportation Fund apportionment for the Western Riverside County, Coachella Valley, and Palo Verde Valley areas; and, 2) Projections for Measure "A" and the related allocations. 12. AWARD AGREEMENT NO. 05-45-537 FOR DIGITAL UPGRADE CONTRACT TO COMARCO WIRELESS TECHNOLOGIES Jerry Rivera, Program Manager, reviewed the completed and pending improvements to the call box system, including the selection of Comarco Wireless Technologies for the digital technology upgrade. In response to Commissioner Seyarto's question regarding spacing, Jerry Rivera explained that CaISAFE guidelines recommend a minimum of 1/2 mile spacing between call boxes. • • • Budget and Implementation Committee Meeting January 24, 2005 Page 5 • • • M/S/C (Seyarto/Meepos) to recommend to the Commission to: 1) Award Agreement No. 05-45-537 to Comarco Wireless Technologies to upgrade the call box system to digital technology in the amount of $1,302,400; and, 2) Authorize the Chairman, pursuant to Legal Counsel review, to execute the agreement on behalf of the Commission. 13. STATE AND FEDERAL LEGISLATIVE UPDATE John Standiford, Director of Public Information, updated the Committee on the Bay Bridge funding issue, a series of meeting and hearings on goods movement, and a briefing with House Transportation and Infrastructure Chairman Don Young. Commissioner John Tavaglione briefed the Committee on a meeting with Congressman Calvert in which it was suggested that a letter be prepared for signature by the tribal leaders outlining local transportation needs and their impacts on the economy. He requested RCTC staff draft a letter outlining critical projects focusing on those projects that would be beneficial to the tribes. M/S/C (Hanna/DeLara) to recommend to the Commission to receive and file the State and Federal Legislative Update as an information item. 14. ITEMS PULLED FROM CONSENT CALENDAR No items were pulled from the consent calendar for discussion. 15. ELECTION OF OFFICERS The Election of Officers was deferred until the next meeting when there is a quorum present. 16. COMMENTS BY COMMISSIONERS/STAFF Eric Haley briefed the Committee on the CTC workshop which outlined a movement towards a two-tier STIP and its potential impact on Riverside County transportation projects. Budget and Implementation Committee Meeting January 24, 2005 Page 6 Chairman Henderson requested staff provide the Committee at its next meeting with a list of projects in jeopardy of being severely impacted. 17. ADJOURNMENT There being no further business for consideration by the Budget and Implementation Committee, the meeting was adjourned at 10:43 a.m. Respectfully submitted, c__,L,,,„:j()u_ \-\cuL.m(;:.,,,— Jennifer Harmon Deputy Clerk of the Board • • • • AGENDA ITEM 6A • • • • • RIVERSIDE COUNTY TRANSPORTATION COMMISSION DATE: February 28, 2005 TO: Budget and Implementation Committee FROM: Michele Cisneros, Accounting Manager THROUGH: Eric Haley, Executive Director SUBJECT: Interfund Loan Activity Report STAFF RECOMMENDATION: This item is for the Committee to: 1) Receive and file the Interfund Loan Activity Report for the month ended January 31, 2005, and 2) Forward to the Commission for final action. BACKGROUND INFORMATION: On April 14, 2004 the Commission approved the Interfund Loan Policy and adopted Resolution No. 04-009 "Resolution of the Riverside County Transportation Commission to Authorize Interfund Loans". The Commission requested that interfund loan activity be reported on a monthly basis. The attached report details all interfund loan activity through January 31, 2005. The total outstanding interfund loan amounts as of January 31, 2005 are $575,000. Attachment: Interfund Loan Activity Report 1 • Ri verside County Loan Activitio mmissi on 1110 Interfund Loan Activit�rt For peri od ended January 31, 2005 Amount Maturity Date Commissioned Date of Lo an of Loan Date Lending Fund Borrowing Fund Purpose of Loan Appr oved April 2, 2003 $ 300,000 July 1, 2006 Measure A - WC Highway (222) Measure A - WC LSR (227) March 4, 2004 Total 275,000 July 1, 2009 Measure A - WC Commuter $ 575,000 Advance to make repairs and improvements to Railroad Canyon Road March 12, 2003 Measure A - WC Highway (222) Additional local match for the SR71 December 10, 2003 Assistance (226) Widening/Animal Crossing Project V:\USERS\PREPRINT\2005\03 March\Budget & Impl\Cisneros - Interfund Loan Activity Rpt 1-31-05 • AGENDA ITEM 6B • • RIVERSIDE COUNTY TRANSPORTA TION COMMISSION DATE: February 28, 2005 TO: Budget and Implementation Committee FROM: Theresia Trevino, Chief Financial Officer THROUGH: Eric Haley, Executive Director SUBJECT: Quarterly Investment Report STAFF RECOMMENDATION: This item is for the Committee to: 1) Receive and file the Quarterly Investment Report for the quarter ending December 31, 2004, and 2) Forward to the Commission for final action. BACKGROUND INFORMATION: Attached are the quarterly investment and cash flow reports as required by state law and Commission policy. The County's Investment Report for the month ending December 31, 2004 is also attached for review. Attachments: Quarterly Investment Report for the Quarter ending December 31, 2004 County of Riverside Investment Report for the Month ending December 31, 2004 • • • Investment P ortf olio Report Perio d Ending: December 2004 OPERATING FUNDS RATING PAR PURCHASE MATURITY YIELD TO PURCHASE MARKET UNREALIZED MOODYS/FITCH/S&P VALUE DATE DATE MARKET PRICE VALUE GAIN (LOSS) City Nation $ 59,361 A3/BBB+ Cash with i 125,255,363-MR1/AAAN +1 Local Ager 2,993,662 Not Rated Agency/Treasury Securities: FNMA 2,020,500 AAA/AAA 2,000,000 03/29/04 03/29/06 2.05% 2,000,000 2,020,500 20,500 Money Mai 77,148 77,148 1.00% 77,148 77,148 Federal Ha 1,985, 625 AAA/AAA 2,000,000 11/12/03 11/15/05 2 .29% 1,993,716 1,985,625 (8,091) FNM A Not 1,928,063 AAA/AAA 1,950,000 03/17/04 03/17/06 2 .08 % 1,951,066 1,928,063 (23,004) Sub-Tota 134,319,721 $6,027,148 $6,021,930 $6,011,336 $ (10,595) FUNDS HELD IN TRUST Cash with County: Local Tran, 34,532,522-MR1/AAAN+1 Sub-To ta 34,532,522 INVESTMENT WITH CITIES (1) Maturity Dat % City of Can 300,000 06/01/09 4.75% Sub-Tota 300,000 COM MISSION BOND PROJECT FUNDS/DEBT RESERVE Milestone f AAA/AAA First Ameri U.S. Treas 15,772,951 AAA/AAA First Ameri 986,689 AAA/AAA Sub-To ta 38,892,313 TOTAL $ 208,044,556 SU MMARIZED INVEST MENT TYPE Banks $ 59,361 Cash with Co unty 159,787,885 LAIF 2,993,662 M utual Funds: First American Treasury - Trust M ilestone Sub - Total M utual Funds Federal Agency No tes U.S. Treasury Note s Investment Agreements TOTAL 23,119,362 23,119,362 6,011,336 15,772,951 300,000 208,044,556 22,132,673 AAA/AAA (1) Investment with cities is reported as a loan receivabl e for financial reporting purposes . 15,772,951 10/01/04 12/30/04 2.28% 15,926,000 15,772,951 (153,049) Statement of Compliance All of the above investments and any investment decisions made for the quarter ended December 31, 2004 were in full compliance with the Commission's investment policy as adopted on March 10, 2004. The Commission has adequate cash flows for six months of operations. Signed by. Chief Financial Officer • 5 December 2004 County Admini.vtrative Center • Investment Objectives_ • Safety of Principal • Liquidity • Public Trust • Maximum Rate of Return Portfolio Statistics Treasurer's Commentary "A Most Eventful Year" 2004 has proven to be an extremely eventful year. The world has been rocked by one of the biggest natural disasters in modern history from the tsunami that struck Southeast Asia. Domestically, the Southeast United States was hit by four hurricanes back to back causing billions of dollars in losses to residents in the region. On the political front, the presidential election of Bush vs. Kerry had it share of media hype, but, avoided a replay of the turmoil in the 2000 election. On the economic front, the huge event was the Federal Reserve raising the Fed Funds and discount rate five times this year with more rate hikes likely to come in 2005. We saw the dollar drop in value versus other world currencies to a nine-year low. Crude oil approached $55 a barrel as a result of surging global demand causing all of us to feel every cent at the gas pump, and, impacting derivative products throughout the economy. Through all of this turbulence, our financial markets and the economy in general have performed remarkably well, providing further evidence of resiliency in the United States economy. Inflation re mains under control, interest rates are up for the yield investor, but still low enough to spur economic growth. In addition, we have seen many new jobs added with the unemployment rate remaining at moderate levels. At the County Government level, as a result of the mutual fund trading scandals, the County of Riverside deferred compensation committee moved to protect its employee's retirement assets by removing some tainted funds. The unfunded pension liability issue has prompted the County of Riverside to move in front of our governmental agency peers to form a committee evaluating the problem, and to come up with solutions to lessen its budgetary impacts. The result will be the issuance of Pension Obligation Bonds in early 2005. Finally, the Pool has grown to its highest level ever at $3.4 billion with its yield rising from a low of 1.36% to our current rate of 2.22%, with expectations of a continuance of this trend in the coming year. g..2_ t cicae Paul McDonnell Treasurer -Tax Collector Econom importance Durable Goods Orders -for December 23rd 1.65% actual vs. 0.6% survey Gross Domestic Product (GDP) -for Decem- ber30th 1.4% actual vs. 1.3%survey Consumer Confidence— Index -for Decem- ber 28th 102.3 actual vs. 94.0 survey Factory Orders -for December 2nd 0.5 % actual vs. 0.2% survey Unemployment Rate- for December 3rd 5.5% actual vs. 5.4% survey At month's end, the Fed Funds rate was at 2.25%, with a balanced bias. The 2 -year T - Note was yielding 3.07% (up 5 bps.) while the 30 -year T -Bond was yielding 4.85% (down .5 bp.) For December, the Pool had an increase of 17 bps. in average monthly yield. The Pool yield should continue to benefit in yield as maturing shorter term securities are reinvested after the FOMC's expected action on February 2,,a. Decerrber November October September August July vbnth-End Book Value vbnth-End Market Value` Paper Gain or (Loss) Percent of Paper Gain or Loss Yield Based Upon Book Value Weighted Average Maturity (Yrs) vbdif ied Duration •arket values does not include accrued interest 3,272,588,374 $ 2,855,283,876 = $ 3,63,447,433111$ 1 —21,-84611;337,967 $ (9,140,941)11$ (8,945,909) $ -0.28% -0.31%( -0.16%' 2.28 0.571 0.64; 0.701 0.50; 0.571 0.45j 2,781,217,011 1 $ 2,829,228,108 , $ 2,861,002,666 $ 2,697,941,850 2,776,641,078 $ 2,823,994,551 $ 2,857,725,021E $ 2,688,886,776 (4,575,933) $ (5,233,556)' $ (3,277,645), $ (9,055,074)- -0.18% ; 011%� 0.34% 1.79: 1.69) 1.61 0.691 0 71 0.79 0.491 0.49 0.67, THE RIVERSIDE COUNTY TREASURER'S POOLED INVESTMENT FUND IS CURRENTLY RATED: Aaa/MR1 BY MOODY'S INVESTOR SERVICES AAA/V1+ BY FITCH RATINGS 6 Portfolio Characteristics SECTOR Federal Agency Cash Equivalent & M M F Commercial Paper Negotiable CD's Medium Term Notes Municipal Bonds Certificates of Deposit Local Agency Obligation Total M u nTerm Note5 Negotiable CD's 3.06% Market Value 1,743,259,599 405,000,000 967, 520,746 100,000,000 19,837,900 6,044,187 20,000,000 1,785,000 3263,447,433 Local Ag 0.0 • Certificatesof Der 0.61% 30 days or Less 30 - 90 Days 90 Days'- 1 Year 1- 2 Years 2 - 3 Years over -3 Years Total Market Value 1,586,690,194.41 508,344, 861.12 212,601,493.50 737,007,668.44 217,018,215.26 1,785,000.00 3,263,447,433 50% 40% 30% 20% 10% 0% 24 Month Gross Yield Trends CREDIT QUALITY Federal Agency AAA A-1/ P-1 or better N/R Total M arket Value 1 ,743,259,599 25, 882, 087 1,471, 520, 746 22, 785, 000 3,263,447,433 30 days 30 - 90 90 Days - 1 - 2 2 - 3 Over 3 or Less Days 1 Year Years Years Years • Market Data 12/30/04 11/30/04 Diff. 3 M 2.212 2.223 -0.011 6 M 2.577 2.432 0.145 2 Y 3.065 2.997 0.068 5 Y 3.607 3.691 -0.084 10 Y 4.218 4.349 -0.131 30 Y 4.826 5.002 -0.176 3M0 6MO 2YR 5YR 10YR 30 * Treasurer's Institutional Money Market Index (TIMMI) is compiled and reported by the Riverside County Treasurer's Capital Markets division. It is a composite index derived from the average of three multi -billion dollar AAA rated Prime (funds that invest in a diversified portfolio of U.S. dollar denominated money market instruments includ- ing U.S. Treasuries, government agencies, bankers' acceptances, commercial paper, certificates of deposits, repurchase agreements etc.) portfolios that the Treasurer tracks. Further details available upon request. Page 2 7 Treasurer's Pooled Investment Fund December 31, 2004 ID End Portfolio Holdings Report CUSIP PAR DESCRIPTION COUPON MATURITY BOOK VALUES PRICE M. VALUE* GAIN/LOSS YLD MAT1 M Dur.4 Avg. Life2 CPD - COMMERCIAL PAPER - DISCOUNT i0 NESTO.E4'l+tl 000,000 UBS FINANCE Al+/P1 EVRON 000,000 AMERICAN EXPRESS Al/P1/F1 90262CN52 02581RN74 93114ENB9 0556C2NE9 137HNL�„T�x' 78009RNL7 71708ENW1 J 61745ANQ8 17307JNS7 74081JNX9 36959HP27 50,000 50 50 50,000 000 WALMART STORES Al+/P1 000,000 BMW US CAP Al+/P1 „, xA1+,1 , `' 000,000 ROYAL BANK OF SCOTTLAND Al+/P1 4; 000 MORGAN STANLEY Al/P1 50,000,000 CITY GRP Al+/P1 AWN 20,000 000 HARVARD UNIVERSITY Al+/P1 74 J AN CHASE AITP1/F1;; 000 GE CAPITAL Al+/P1 f °Al+/Pl. 74271TPA5 50,000,000 PROCTER &GAMBLE CO Al+/P1 970,000,000 FFCB - FED FARM CREDIT BANK 31331 QY84 rf;$.fTD81. 31331TEY3 1.10str,g6t,, 3133105B9 Tfi 3 10,000,000 2.26 FED FARM CREDIT BANK 2YrNc3Mo GRgOlt t1ANK _. .,.... 10.000.000 FED 20,000,000 FARM CREDIT BANK 2YrNc CREDIT WO FED FARM CREDIT BANK2 1/4YrNc3 3 5,000,000 FED FARM CREDIT BANK 2YrNc6Mo 31 _ F3 10,000,000 FED FARM CREDIT BANK2YrNc1Y 28X2265 31331TKP5 i1'C3C3 31331SKN2 kD4 31331T4F5 1T6W6 31331TXE6 1TKN0" 31331SFW8 3128X3Z55 4t8X21v,IU9- 183,910,000 FHLB-FED HOME LOAN BANK 3.143,X2240 14,-(iili4 -' 3133X3TW3 5,000,000 FED 3'1;33X7523 .11) 114,)„ 3133X5RL4 5,000,000 FED 3'1 3X4E80 ;)^ w, 3133X4HR5 X8XL1. 3133X05H8 2 5,000 000 FED FARM CREDIT BANK5.5YrNc6Mo WOW*, ',OREENTSAW." 5,000 000 FED FARM CREDIT BANK1.5YrNc 5;004%0 X D1T:BANKI.5YrN 6 5,110,000 FED FARM CREDIT BANK 2YrNc6Mo 10,000,000 5, 5,000 000 5,000,000 ~MOO BANK 2YrR4C' FED FARM CREDIT BANK2 5YrNc1Yr GL L3 T BANK*4o6 FED FARM CREDIT BANK2YrNc6Mo1X CREDIT BANK2 FED FARM CREDIT BANK2YrNc6Mo KENT 133Yr eW 3133X9833 5,000,000 FED HOME LOAN BANK1..25YrNc3Mo LOAN 641-1(1.0 HOME LOAN BANK18MoNc3Mo Wit?) BANK1YrNr 10,000,000 FED HOME LOAN BANK 2 1/4YrNc3M D HOME �(?$Iu1tr1 5,000,000 FED HOME LOAN BANK13MoNc1Mo D)40MI 3133XA3G0 10,000,000 FED HOME LOAN BANK 13MoNc3Mo s E21 3133X8TP7 7,315,000 FED HOME LOAN BANK1.25Nc6Mo1X 3133X3ET6 O 3133X3DS9 (28 5,000,000 FED HOME LOAN BANK2YrNc1Yr 5,000,000 FED HOME LOAN BANK 3133X6RS7 5,000,000 FED HOME LOAN BANK1.75YrNc6Mo 31 Al 5,000,000 FED HOME LOAN BANK2YrNc3Mo 5,000,000 FED HOME LOAN BANK 2YrNc3Mo 2.17 2.20 2.30 t 1/5/2005 '?a0 1/7/2005 1/11/2005 1/14/2005 1/20/2005 172172, 1/24/2005 ir2 ( '< 1/26/2005 1/31/2005 2/2/2005 13/2 2/10/2005 49,955,083 49,904,444 99.91 99.81 49,879,444 99.76 49,907,361 99.81 49,843;056 49,861,250 99.72 49,870,000 99.74 49,888,194 99.78 49,86"5,633 99,73 19 926,461 99.63 49,842,111 99.68 49,802,250 967,520,746 99.60 49,955,083 49,956;444 49,904,444 49;932,917 49,879,444 4096;111 49,907,361 ,49,844°;056 49, 861, 250 49,870,000 49,888,194 49;86 .8' 3 19,926 461 L. 49,842 111 49,802,250 967,520,746 ;Q01; 1.58 7/8/2005 10,000,000 99.44 9,943,750 712(1320.05. 1.76 9/22/2005 10/1932 1.90 10/24/2005 2212_-,.121151 2.00 1/23/2006 2'50 .. 3/67 ! 1.80 3/17/2006 2:U9' 3/2912 2.65 5/19/2006 9,999,400 99.25 20,000,000 5,000,000 98 10,000,000 98.50 MOW 5,000,000 99.38 , 011932006 000 3.00 6/27/2006 4,996,350 99.81 1.70 8/9/2006 `32006 9/29/2006 '(!21/2946: 12/1 /2006 12135%2 12/29/2006 '1/2612( :it It 3/1/2005 6/30/2005 .00#12SW 9/16/2005 4,998,438 5,110,000 99.94 10,000,000 98.09 5,000,000 99.75 5,000,000 99.37 183,902,450 941 1 ;97. 5,000,000 99.84 89:78; 99.31 5000,000 99.22 2 03 11/18/2005 10,000,000 99.22 2.45 12/16/2005 5,000,000 99.47 3.00 1/18/200y6g� 10,000,000 99.91 2.42 1/20/2006 7,313,286 99.38 2.16 1/27/2006 5,000,000 99.09 2.00 2.26 2/13/2006 4,990,550 98.88 2/17/2006 5,000,000 99.16 2.35 2/27/2006 5,000,000 99.19 2.00 4/13/2006 5,000,000 98.66 2.10 4324 b a6 9,925,000 4,975,000 99.19 19,837,500 �s3 2. 9925;8000 94 4,946,875 4;968;750" 9,850,000 4 934;900 4,968,750 985;'625 4,990,625 5,106,806 ,125 9,809,375 979,885':, 4,987 500 4,093750ng 4,968,350 10; 2.27 182,607,744 4,992,188 9,J7#3 4,965,625 4,4603:K 4,960,938 4,082,813 9,921, 875 4,973,438 881 0 9,990,625 7,269,281 (56,250) <: 8 ? 000) (74,400) (25,800)" (162,500) (75,000) (53,125) (150,000) (65,100)'- (31,250) 2.65 (34,375):.; , 2.60 (5,725) 3.056fu`y4 3.0 (3,194) 3.20 (435'X5 ..,,-,'Zial (190,625) 2.07 (2tttajt (12,500 .zz'' 2.31 0.01 2:7±( ? 2.15 0.02 0.02 2.18 0.03 0.03 2.20 ' 0.84 , :.s.f3.ii4 2.30 0.04 0.04 2.23 0.05 0.05 2.35 0.07 2.17 0,07; 2.31 0.07 0.07 0-07'`: 0.07 2.18 0.08 0.08 2;2 . 0.08 0.084 2.33 0.09 0.09 0.0 ; #f.El9s 0.11 0.11 0.05 2.25 0.52 0.55 0.72 0.81 1.05 1.80 1.20 T1 0.52 0.73 0.81 1.06 ErM 1.21 1 36 1.38 1.47 1 49 1.56 1 61 1.71 1 75 3.25 1.87 31,650) 3.35 (1,294,706) 2.22 (7,8131 (32,813) 1.37 (39,063 (78,125) (17;'188)" (26 5631 0.17 0.50 1.70 0.70 9 45 n PIS 4,954,688 (45,313) 2.16 4,957,813 (42,188) 4,959,375 4,932,813 1.04 1.92 1.99 0.16 0.50 0.71 0 95 Treasurer's Pooled Investment Fund December 31, 2004 Month End Portfolio Holdings Report • CUSIP PAR DESCRIPTION COUPON MATURITY BOOK VALUE' PRICE M. VALUE* GAIN/LOSS YLD MAT' M Dur.4 Avt;. Life2 3133X5ZF8 ;41VOfv(C7 5,000,000 FED HOME LOAN BANK 2YrNc1Yr1X {;O00` -FED HOME LOA 7 ,*.0404. 3133X6S49 5,000,000 FED HOME LOAN BANK2YrNc3Mo1x 3'I''28X3KS1 5,000,000 FED HOME LOAN; `tt 01.) f 31339X2L7 17,000 000 FED HOME LOAN BANK 3YrNc3Mo 3133X4OP9 6,480,000 FED HOME LOAN BANY<2.25YrNW ; ' 31339XRJ5 20,000,000 FED HOME LOAN BANK3YrNc3Mo i'�:A41 ,..�,;,;.,;, Qk?0A a. FED HOME LoAt .s ,. igom 3 3133X5PV4 5,000,000 FED HOME LOAN BANK2.25YrNc3Mo 3133X35G4 MOW 31339YFE7 31339YPK2 31339YR61 3133X5ZG6 3133X3HP1 3133x9 c8 3133MYZJ9sy� . Aft _hh 6:5_af„ 3133X5NS3 3133XA2J5 3133X5SM1 3133X6BA3 3133X6RE8 5433)19$,14 . 3133X22E4 31W6V,` 3133X9GD6 Ji 1 3133X9HC7 3133X9GH7 31,E 3133X4S93 3133X9X96 3133X8SA1 „ ?T 31339YKH4 3133X4CS8 3133X4HY0 3133X8SJ2 3133X5TL2 3133X62Z8 3133X6H25 3133X8WD0 3133 M, 3133X96N5 3133X9TNO 675,535,000 FHLC - FHLB - MORTG. CERT. 3,800,000 FED HOME LOAN BANK2.5YrNc6MoSt 'Po :6Wfe HOW `;:z2eY114611"fai 13,000,000 FED HOME LOAN BANK 3YrNc3Mo 10,000,000 FED HOME LOAN BANK 3YrNc3MoSte 000 FEW 4;, -,�:,,: 000,000 FED HOME LOAN BANK 3YrNcMoStep FED HOMI '6 725YYtNO3 4, 5,000 000 FED HOME LOAN BANK2.25YrNc3Mo 1 M0ME LOAN Bltif 10.000,000 FED HOME LOAN BANK2.5YrNc3Mo I 'e 'SAN BANK 3Yrritc* 5,000,000 FED HOME LOAN BANK 1.75YrNc9Mo mR$ ,2YrNc310 15,000,000 FED HOME LOAN BANK 3.25 YrNc3M 10,000,000 FED HOME LOAN BANK2.5YrNc6Mo ' 8(Jft,000;:: UM::: 5,000,000 FED HOME LOAN BANK1.75YrNc9Mo1 000,04ti; � . 5,000,000 FED HOME LOAN BANK2.5YrNc9Mo 'ttt00-: FEW )?,'- N B r it 5,000,000 FED HOME LOAN BANK2.5YrNc6Mo 131 000 0 FED ": . ;rN ‘..,:'2 J Mo..:,. 5,000,000 FED HOME LOAN BANK2.5YrNc1Mo 1100,000,.' j ?Ati 0140W0-6' 5,000,000 FED HOME LOAN BANK3YrNc3MoStep 5 004rodd - 1 1 l d. a6Mcix 5,000,000 FED HOME LOAN BANK 2YrNc1Mo 00/fiOtvtiElttyf1 rNc3Mo 5,000,000 FED HOME LOAN BANK2YrNc6Mo 9Eb HOME; }AN' r'NO3Mo„ 6,750,000 FED HOME LOAN BANK 2.75YrNc3Mo 000,000 FED HOME LOAN BANK2YrNc1Yr 920,000 FED HOME LOAN BANK2.25YrNc3Mo 000 .FEVIOTWOW 13,000,000 FED HOME LOAN BANK3.5YrNc3MoST 2,400,000- FEVI 5,805,000 FED HOME LOAN BANK3YrNc6MoStep 00 FE3'-,) 1s A f`ji " 8,215,000 FED HOME LOAN BANK3YrNc3MoStep 5,000,000 FED HOME LOAN BANK 3YrNc1Mo 5,000,000 FED HOME LOAN BANK3YrNc3Step 10,000,000 FED HOME LOAN BANK 3YrNc3MoSt 10,000,000 FED HOME LOAN BANK3YrNc1Mo 5,000,000 FED HOME LOAN BANK2.5YrNc3Mo 5,750,000 FED HOME LOAN BANK2.75YrNc3MoS 5,000,000 FED HOME LOAN BANK 3YrNc1Mo 'xonto-. fet_ 5.000.000 FED HOME LOAN BANK 3YrNc1Mo 3128X2BW4 5,000,000 FHLB- MORTG. CERT.2YrNc6Mo1X Ka CE1 2.15 4/26/2006 28005 2.50 2.50 5/19/2006 5,000,000 2.38 6/12/2006 17,000,000 98.91 6,478, 8"::,;:_: 6/30/2006 20,000,000 98.47 '030(2006 - 6/30/2006 4,991,406 98.38 2.11 2.03 2,1 2.25 2.38 2.51 2.50 3.00 2.50 2.15 3.23 2.15 7/13/2006 MOW 7/24/2006 7/28/2006 10,000,000 7/28/2006 10,000,000 5,000,000 98.78 7/28/2006 rz 8/11/2006 8/30/2006 9/11/2006 .9/252005 ' 9/29/2006 6=; 9/29/2006 10/20/2006 2.58 10/27/2006 2006 > 99.19 4,939,063 (60,938) 4,959,375 (40,625) 16,814,063 (185,938 19,693,750 (306,250) 724160,7 A* - 4,918,750 72,656) 3,800,000 99.78 13,000,000 98.63 12,821,250 99.09 9,909,375 104,4.4 99.16 9,915,625 (84,375) 0.00,000, J$i8 5,000,000 99.00 3,791,688 (8,313) 178,750) (90,625) 4,950 000 (50,000) 9,995,313 98.97 9,896,875 98,438 12,00€TOff?t. a; ;.4 6:260- 5,000,000 99.69 4,984,375 (15,625 4)00,004'1-'-#092111100:44:,- ( 15,000,000 98.84 14,826,563 (173,438 "5;dt10 10,000 000 98.25 9,825,000 (175,000) '9.815.625`. 5,000,000 100.00 5,000,000 4 :. 4 904 58 5,000,000 98.16 4,907,813 3.06 11/17/2006 ;%, , 114 ,i'V'1`"1/17/2005' - .... ;7:4:00 606-,, 2.25 11/20/2006 4,995,313 A.& 11/22(2006! R ;" 00,000 3.23 11/28/2006 5,000,000 `5r010:Q.Q 3.09 12/1/2006 5,000,000 2.00 12/22/2006 3.25 12/29/2006 3.05 1/5/2007 2.50 1/30/2007 2.25 3/9/2007 2.00 3/16/2007 $3/31464" %0 3.26 4/19/2007 #725/2007 2.00 4/27/2007 ;. 4/3012007? 2.25 4/30/2007 /1i(20O7 ": 3.21 5/11/2007 3.51 6/1/2007 2.63 7/26/2007 3.50 11/16/2007 ?'� 12128 12/28/2007 4.00 25 11/28/2005 ,9900 6,75n nnn 5.( 4,995,000 i9.65 " " d:6,4 5,000,000 98.88 4,943,750 99.72 \..Vatit 5,000,000 99.66 4,982,813 99-66 r� 99.84 4,992,188 99.56" 99.84 4,992,188 9953 99.84 7,916,288 99.56 12,995,938 99.47 59:60 5,804,093 99.38 8,215,000 99.72 4,995,313 99.72 5,000,000 99.31 4,984,375 4:993;7511;`; 6,718,359 4,992,188 9,837,5©) 7,885,350 4,974 12,930,938 5,768,719 4,9, 8,191,895 4,985,938 4,965,625 9,956,250 10,000,000 99.59 9,959,375 5,000,000 100.06 5,003,125 5,749,102 99.88 5,742,813 5,000,000 99.81 4,990,625 5.004.688 5.000,000 100.09 (92,188) (56,250 (17,188) 3,125) (7,813)1 (15,625 (31,641) 2,813 (30,938) (65,000) ti.251 (35,374) (23,105) (9,375) " 1$;625) (42,188) tal,2sl (40,625) 675,467,399 670,183,286 (5,284,113) 5,000,000 99.39 4,969,250 (30,750 4,688 2.15 1.30 1.32 2.50 1.37 1.38 2.38 1.43 1.45 2.11 1.48 1.50 2.11 1.49 y ' 3.00 1.49 2.25 1.53 1.56 2.33 1.54 1.57 E 2.37 1.54 1.57 2.51 1 55 1.57 1.61 3.00 1.63 1.66 1.70 2.52 1.57 1.50 2.50 1.67 1.53 2.15 1.71 1 75 1.75 3.22 1.71 1.75 2.15 1.76 '1 2.58 1.78 3.06 1.83 1.88 3.23 3.09 2,80 2 72 0.88 1.85 1 86 1.86 1.87 1.93 3.30 1.95 1.89 1.91 1.92 1.98 1.99 1.95 2.01 2.70 1.55 2.26 1.17 2.98 1.19 3.30 2.22 2.82 2.26 3.07 1.32 3.21 2.28 (1.05 3.51 0.17 2.08 2.43;f 2.19 2.1 221 2-24 2.30 2.32 2.33 2.36 2.42 3.30 0.57 2.57 3.50 2.75 4.00 0.08 2.53 2.25 0.90 X30." 1.017 2.88 9 Page 2 of 4 Treasurer's Pooled Investment Fund December 31, 2004 End Portfolio Holdings Report CUSIP PAR DESCRIPTION COUPON MATURITY BOOK VALUE 1 PRICE M. VALUE* GAIN/LOSS YLD MATT M Dur.4 AvE. Life2 3133X52A9 3128X2ZV0 Iggslwea 3128X3CD3 3'[28X3AXT WOO (lgrFl= l .,MOR.T,; 3128X3HH9 5,000,000 FHLB - MORTG. CERT 3128X3GT4 7,70600 Pl ILA ,7ki 3128X3SV6 5,000,000 FHLB - MORTG. CERT.2YrNc6Mo 3128X3WJ8 5,'01100: '. ,. ' V Mo 0 3128X2Z84 5,000,000 FHLB - MORTG. CERT3YrNc1Yr1xSt 3128X2284.::.- 10;001006 'FH1 1M i='- �'Y1 3128X2F42 5,000,000 FHLB - MORTG. CERT.3YrNc6MoSte 3.128X22Ft..p Ittf111014tk 3128X24D4 5,000,000 FHLB - MORTG. CERT.3YrNc1YStep A128X3AY9 - `+.0 0IM� ORTG,.:t 116,275,000 FHLD - FED HOME LOAN DISCOUNT 313385AW6= 60,000000 F) )) {) LOA( DISGOII 313385AW6 50,000,000 FED HOME LOAN DISCOUNT 313306C)41411,, :, 60.000,000'-'FtdiattWitAti DISCOL{ ii``;° 150,000,000 FNMA - FED MORTG ASSOC. 31361Far:.` . 10,000 000 fwTQ 4..04 3136F3T48 20,000,000 FED NAT MORTG ASSOC2 YrNc3MoSt 3136F4Mae 10;0;10get ., *OW* I'ti** ;:, 2 3136F3S23 7,850,000 FED NAT MORTG ASSOC. 2.5YrNc3M 31:36F3V29 3136F45N0 :1195,F45N0 313.5 MUA9 R5, 5,000,000 FHLB - MORTG. CERT.1.75YrNc9M1 RTG, CERT4YrNC FHLB - MORTG. CERT.2YrNc3Mo RTG..G,.. 10,000,000 FHLB - MORTG. CERT.2YrNc3Mo 2YrNc1Yr ��3i±9a 2.20 3136F6ES4 '36F5PY1" 3136F4LN2 3136F3U53 3136F6BG3 3136F5.11„ 3136F6DH9 3136F5LV, 3136F6FT1 3136F5 3136F5MD0 3136F 5,000,000 FED NAT MORTG ASSOC 5,000,000 FED 2YrNc6Mo NAT MORTG ASSOC 2YrNc1Yr1x 3,000,000 FED NAT MORTG ASSOC.2YrNc3Mo 5,000,000 FED NAT MORTG ASSOC.1.6 Yr6Mo1 4ltVI`_;.�', 4ttATMtiR x .: 10,000,000 FED NAT MORTG ASSOC 2 5YrNc6Mo 16,000400MgV, MORtdA010,',', tr : 10,000,000 FED NAT MORTG ASSOC3YrNc3MoSte 000• ' a: ORTC AS;>t1C: 3Y€ _W...._..__. 5,000,000 FED NAT MORTG ASSOC 2YrNc3Mo 0 F i . id 2.5Yitio 5,000,000 FED NAT MORTG ASSOC. 2YrNc6Mo1 FEO-tin" OC.2,5YrNh610 5,000,000 FED NAT MORTG ASSOC.2YrNc3Mo ,000;000 FEE SOC.2.55Y, rN 10,000,000 FED NAT MORTG ASSOC.3YrNc1YrSt 500;000 FEt'3 t SAC.3YrN 179,125,000 FNMD - FNMA DISCOUNT NOTES 313589BY8 35,000,000 FNMA DISCOUNT NOTES 75,000,000 FRMC - FEDERAL HOME LOAN MORG CORP DI 313397AL5 313397BA8 313397BD2 50,000,000 FEDERAL HOME LOAN MORG CORP DI 50,000,000 50,000,000 FEDERAL HOME LOAN MORG CORP DI LOAN Md FEDERAL HOME LOAN MORG CORP 313397BH3 50.000.000 FEDERAL HOME LOAN MORG CORP DI 375,000,000 LAO - LOCAL AGENCY OBLIGATIONS 850.000 US DIST COURTHOUSE CERTS 1,785,000 MMF - MONEY MARKET FUND 1,000,000 MED TERM NOTES 82 10,000,000 GE CAPITAL GROUP 20,000,000 2.02 1/27/2006 /2117/2000 3/15/2006 4/26/2006 90 :./ 5/26/2006 24. %l 8/18/2006 3/2/2007 3/8/2007 AtalfittEr 4/12/2007 2.50 2.00 2.00 2.10 2.13 7/29/2005 241k. 2.00 1/30/2006 2.17 2/17/2006 2.25 2/28/2006 2.05 3/29/2006 /2006 2.20 3/30/2006 1912006:: 2.48 4/21/2006 5,000,000 98.94 6,273,118 98.89 10,000,000 99.22 5,000,000 99.80 5,000,000 99.94 5,000,000 99.81 :11A0Or 5,000,000 98 5,000,000 98.68 F hfllY.f3F3'E'a.. � ads'. 116,273,118 4,946,875 6,205,034 9,922,400 4,989,900 4,996,800 4,990,400 (9,600) ootE 4,928,125 (71,875) 4,933 750 (66,250) 2.56 115,396,065 (877,053) 2.56 99.66:;: /h 49,851,250 99.70 49,851,250 ;349,893,167 . 149,492,028 2 149,492,028 0 000,000 99.66 19,931,250 7,846,154 98.91 5,000,000 99.03 5,000,000 99.09 3,000,000 98.75 5,000,000 99.69 10,000,000 98.47 2.25 7/24/2006 10,000,000 99.13 9,912,500 3.00 9/14/2006 5,000,000 99.66 4,982,813 9/ °°:::::'9/ °°:3.02 / °°: 3.02 9/29/2006 4,999,750 99.69 4,984,375 3.00 10/19/2006 5,000,000 99.59 4,979,688 (68,750) t'f2/5001 7,764,141 (82,013) '9026 (1114,68$). 2.13 4/12/2007 1.41 2/16/2005 2.25 1/11/2005 2.27 1/25/2005 2.25 1/28/2005 2/1/2005 2 2.78 6/15/2020 2.00 1/30/2006 74,202,379 49 909 576 99.82 49 908 569 99.82 49,906,250 99.81 98;4381%AL 10,000,000 98.56 9,856,250 179,016,833 177,547,258 (53,125) (48,900) (68,084) 2.13 (77,600) 2.50 (1;13,600}' 2i (10,100) (11 ) ,200 (3,200) 4,951,563 (48,438) 4,128.742 X 44 7'S6k414 4,954,688 (45,313) /J$.7Ei 000;: (25,900)-.>.:,s,,,. 2,962,500 (37,500) `4;9765,000': k �L 5 0)<;s''�. 4,984,375 (15,625) 7>590 9,846 875 (153,125) 2.02 1.06 1.07 1.19 1.20 1.30 3.00 1./38 2.20 0.13 2.88 0.17 KOK 3.01 2.12 1.32 1.40 1.63 2 17 2.18 2.22 2.28 .2.26'' 1.60 2.11 0.06 2.18 0.06 0.09 1.71 0.57 0.58 2.02 1.07 1.08 2.17 1.1 1.13 1.14 1.16 1.23 1.24 2.20 1.23 1.24 (87,500) 2.35 (90=626) a (17,188) ,[5,3131 (15,375) (0 0,625) (20,313) !Y(9.316) (143,750) (7;114 (1,469,575) 34.587.379 98.82 34,587,379 74,202,379 49,909,576 49,908,569 49,906,250 49,865.028 99.73 49,865,028 373,830,840 373,830,840 850.000 100.00 1,785,000 1,000,000 10.000.000 98.78 20,000,000 850.000 1,785,000 : Ili:` 1,000,000 2.27 0.09 0.09 0.06 1x3,059,900 .. ?< )'ry 9 878 000 (122,000) 19,837,900 1.29 1.30 1.53 1.56 3.00 1.66 1.70 3.02 1.70 1.75 2.1 3.00 1.76 1.80 2.31 2.22 2.28 1.33 2.25 0.03 0.03 2.27 0.07 0.07 225 0.08 2.18 2.78 2.78 9.44 11.32 0.08 xs- 2.04 12.48 0.08 2.00 1.07 15.47 0.08 1.08 (162,100) 2.12 0.85 0.86 1 0 Page 3 of 4 26 Treasurer's Pooled Investment Fund December 31, 2004 Month End Portfolio Holdings Report CUSIP PAR DESCRIPTION COUPON MATURITY BOOK VALUE 1 PRICE M. VALUE* GAIN/LOSS YLD MATT M Dur.4 Avg, Life2 MUNI - MUNICIPAL BONDS 76886PAU7 76886PAV5 1.545,000 RCC GO BONDS 2004B AA-/Aa3 6,045,000 NCD- NEGOTIABLE CO_ 0,6505OVJU2 9497P1 YW3 50,000,000 WELLS FARGO A1+/P1/F1 100,000,000 REPO- REPURCHASE AGREEMENT 154,000,000 MERRILL LYNCH 404,000,000 TCD - TIME DEPOSITS L. 10.00€# x,` 10,000.000 TIME DEPOSITS CITIZENS BNS BNK 20,000,000 Total 3,277,675,000 'Local Agency Obligations have variable rate coupons, spread to the Pool. 'Modified Duration The percentage price change ofa security for a given change in yield. The higher the modified duration of a security, the higher its risk. 3.63 8/1/2007 1,550,871 6,097,581 99.76 1.541.307 (9,564) 3.49 2.45 6,044,187 WM OW 2.31 2/7/2005 50.000,000 100.00 50,000,000 100,000,000 2.15 2.50 1/3/2005 4/11/2005 100,000,000 154,000, 000 100.00 154,000,000 404,000,000 404,000,000 10.000.000 100.00 20,000,000 10,000.000 20,000,000 3,272,588,374 3,263,447,433 (9,140,941) 3.10 2.30 ''01. 2.41 0.10 2.35 2.15 0.01 2.15 2.58 1.84 0.10 0.09 0.01 0.01 2.53 0.28 0.28 2.43 0.15 2.28 0.50 0.57 11 Page 4 of 4 ummary of Authorized Investments The Treasurer's Pooled Investment Fund was in FULL COMPLIANCE with the Treasurer's Statement of Investment Policy. The County's Investment Policy is more restrictive than the California Government Code. This policy is reviewed annually by the County's Investment Oversight Committee and approved by the County Board of Supervisors. California Government Code Investment Category Maximum Maturity LOCAL AGENCY BONDS County Investment Policy Authorized % Limit 1 QualityS&P/ 1 Maximum Matur- Authorized% QualityS&P/ Actual Riverside Moody's 1 Ity Limit Moody's Portfolio % 5 YEARS NO LIMIT CALIFORNIA LOCAL AGENCY DEBT 5 YEARS BILLS OF EXCHANGE CERTIFICATE & TIME DEPOSITS REVERSE REPOS RTES CaITRUSTSHORT TERM FUND 5 YEARS NO LIMIT N{I NIT,• 3 YEARS 5 YEA 3 YEARS 15%/ $150MM A/A2/A INVESTMENT GRADE 180 DAYS 30% A1/P1/F1 0.00% 25% MAX A1/P1/F1 92 DAYS 20% 60 DAYS 10% MAX N/A 5 YEARS N/A UAL FUNDS 90 DAYS (2) •CURED BANK DEPOSITS 5 YEARS N/A NO LIMIT MORTGAGE PASS - THROUGH SECURITIES 5 YEARS 20% LOCAL AGENCY INVESTMENT FUNDS N/A NO LIMIT N/A 0.05% DAILY LIQUIDITY 1 YEAR 3 YEARS 0.00% Board Approved i2% 0% MAX 1 No more than 30% of this category may be invested with any one commercial bank 2 Mutual Funds maturity may be interpreted as weighted average maturity not exceeding 90 days 3 Or must have an investment advisor with not less than 5 years experience and with assets under management of $500,000,000. Projected Cash Flow The Pooled Investment Fund cash flow requirements are based upon a 12 month historical cash flow model. Based upon projected cash receipts and matu- rating investments, there are sufficient Funds to meet future cash flow disbursements over the next 12 months. Month Monthly Receipts Monthly Disbmts Difference Required Mat. Invest Balance Actual Inv. Maturities Avail. To Invest> 1Yr. 01/2005 192.7 02/2005 5118 646.6 (134.8) 134.8 385.0 04/2005 858.2 729.1 129.1 201.3 10.0 06/2005 608.3 908.1 (299.8) 278.0 25.0 08/2005 697.4 694.3 3.1 4.5 15.0 12/2005 1,174.5 772.0 402.5 425.8 30.0 Totals 7,737.8 8,473.0 (735.2) 12 968.3 29.68% 2,313.8 70.91% 2,294.7 70.32% • 3 COMPLETES THE REPORT REQ(_ fREMENTS OF CALIFORNIA GOVERNMENT CODE 53646 Page 3 • AGENDA ITEM 7 • • • • • RIVERSIDE COUNTY TRANSPORTA TION COMMISSION DATE: February 28, 2005 TO: Budget and Implementation Committee FROM: Shirley Medina, Program Manager THROUGH: Cathy Bechtel, Director of Transportation Planning and Policy Development SUBJECT: County of Riverside Transportation Enhancement Funds Request STAFF AND TECHNICAL ADVISORY COMMITTEE RECOMMENDATION: This item is for the Committee to: 1) Approve an additional $286,119 of TEA funds for the County of Riverside's I-10/Monterey and I-10/Washington interchange landscaping projects; and 2) Forward to the Commission for final action. BACKGROUND INFORMATION: We received a letter from the County of Riverside (attached) regarding the status of a previously approved Transportation Enhancement Activities (TEA) project, landscaping at the I-10/Monterey and Washington interchanges. The Commission previously approved $707,571 for this project and bids were opened on December 22, 2004. The low bid was significantly higher than the engineer's estimate due to the recent increase in steel and concrete costs. The County is requesting an additional $286,1 19 of TEA funds to cover the difference so that they can award a contract. Our policy concerning cost increases allows agencies an additional ten percent of the approved federal funds. However, local agencies have experienced delays with completing environmental documents, thus resulting in delays in obligating funds. If funds are not obligated in a timely manner, they will be subject to reprogramming by the California Transportation Commission (CTC) at the end of the year. Therefore, in order to prevent the chance of losing funds it is in our best interest to consider an exception. 13 At the February 14, 2005 Technical Advisory Committee (TAC) meeting, the TAC approved the County's request given that there are sufficient funds to cover the cost increase without impacting other current TEA projects. Staff concurs with the TAC's recommendation since the County can obligate the funds in a timely manner upon the Commission's approval. This will help reduce the balance subject to reprogramming in the upcoming months. Attachment: Letter from the County of Riverside • • 14 COUNTY OF RIVERSIDE TRANSPORTATION AND LAND MANAGEMENT AGENCY Transportation Department January 31, 2005 Ms. Shirley Medina, Program Manager Riverside County Transportation Commission 4080 S. Lemon St, Third floor Riverside, CA 92501 George A. Johnson, P.E. Director of Transportation 70588 FEB 01 2005 iDECOUNT FANSa"RTATiON COMMISSIC RE: 1-10 /Monterey & Washington Interchanges Landscaping Dear Ms. Medina: Riverside County is the lead agency for the landscaping project at the 1-10 /Monterey & Washington Interchanges. Funding for the project includes federal TEA funds that were approved through a competitive process conducted by the RCTC. Federal TEA funds in the amount of $707,571 were approved for the project. Bids were opened for the .project on December 22, 2004 and the low bid was found to be substantially higher than budgeted due to increased costs in steel and concrete. Based upon the low bid we have calculated that the amount of federal funds needed to fully fund the project, including contingencies, is $993,690. Riverside County requests an increase in the amount of federal TEA funds for this project in the amount of $286,119 for a new total amount of $993,690. We are holding award of the construction contract pending a determination of funding availability and attention to this matter would be appreciated. Please feel free to contact Mr. Juan Perez, Deputy Director of Transportation, if there are any questions. Sincerely, Geor A. Johnso Director of Trans•:rtation RKN: cc: Supervisor Roy Wilson Neil Nilchan Roy Null 4080 Lemon Street, 8th Floor • Riverside, California 92501 • (909) 955-6740 P.O. Box 1090 • Riverside, California 92502-1090 • FAX (909) 955-3198 K.16.00 15 • AGENDA ITEM 8 • • • • • RIVERSIDE COUNTY TRANSPORTATION COMMISSION DATE: February 28, 2005 TO: Budget and Implementation Committee FROM: Stephanie Wiggins, Rail Department Manager Claudia Chase, Property Agent THROUGH: Hideo Sugita, Deputy Executive Director SUBJECT: Approve Agreement #05-51-542 with March Joint Powers Authority for the Exchange of Property related to the San Jacinto Branch Line STAFF RECOMMENDATION: This item is for the Committee to: 1) Approve Agreement #05-51-542 with March Joint Powers Authority (JPA) for the exchange of property related to the San Jacinto Branch Line (APN#'s 297-160-002 and portions of 294-060-005, 297-110- 004, and 297-100-003); 2) Authorize the Chairman, pursuant to Legal Counsel review, to execute the agreement on behalf of the Commission; and 3) Forward to the Commission for final action. BACKGROUND INFORMATION: In March 1993, the Atchison, Topeka and Santa Fe Railway Company (ATSF), currently known as the Burlington Northern Santa Fe Railway, sold the 38 -mile San Jacinto Branch Line (SJBL) to the Riverside County Transportation Commission. Between 1992 and 1994, Caltrans relocated less than a mile of the SJBL rail right of way for the construction of 1-215; the rail line moved from the east side of 1-215 to the west side in an area near Alessandro Blvd. The relocation of the SJBL resulted in remnant parcels along the "Old 1-215" rail right of way. The Commission property management consultant, Epic Land Solutions, recommended that the remnant parcels be disposed of in three phases. In September of last year, the Commission authorized the disposal of Phase 1, which resulted in the surplus of approximately 14 - 19 acres north of Alessandro Blvd. in the unincorporated area of the County. 16 Caltrans and March JPA Property Transfer Needed While Caltrans, ATSF, and the United States Air Force executed the original agreement for the relocation of the SJBL, March JPA became the successor to the US Air Force property. However, the property was never conveyed to the Commission. As a result, a portion of the current SJBL is located largely on property owned by March JPA, which is the subject of this agenda item. Over the last twelve months, staff has worked with March JPA on a property exchange to trade a portion of the "Old 1-215" (Phase 2) rail right of way for the new rail right of way on which the rail line is constructed. The new right of way is to accommodate two tracks and be protected from unhistorical drainage. The disposition of the balance of the "Old 1-215" rail right of way, or Phase 3, anticipates transferring the parcels to Caltrans for future highway projects (i.e., widening of the Cactus Avenue interchange). Upon the completion of the disposition of Phase 2, Staff will bring a draft agreement to the Commission for review and approval of the disposition of Phase 3. Phase 2 Properties for Exchange The APN#'s to be conveyed to March JPA by RCTC are 297-160-002 and portions of 294-060-005, 297-110-004, and 297-100-003. In return, March JPA will convey to RCTC the new rail right of way, of which the Branch Line currently occupies. (No APN's exist for the rail right of way, however, the legal description and plat map will serve as documentation for the right of way). Conveyance of the new rail right of way is also critical for the Perris Valley Line Project, as all needed right of way must be acquired prior to construction of the Project. Attachment: I-215 Pending Transactions Map 17 PHASE 2 Legend CALTRANS to March JPA March JPA to RCTC RCTC to March IPA RCTC to CALTRANS CALTRANS to RCTC Potential RCTC Surplus Property Proposed ROW Boundary 1-215 Pending Transactions = Phase 2 = Phase 2 Eucalyptus Cottonwood Alessandro Blvd Epic Land Solutions, Inc. k] ,M a Si O2, u. Cactus Ave • AGENDA ITEM 9 • • • • • RIVERSIDE COUNTY TRANSPORTA TION COMMISSION DATE: February 28, 2005 TO: Budget and Implementation Committee FROM: Claudia Chase, Property Agent Stephanie Wiggins, Rail Department Manager THROUGH: Hideo Sugita, Deputy Executive Director SUBJECT: Surplus Corona Depot STAFF RECOMMENDATION: This item is for the Committee to: 1) Declare the property identified as the Corona Depot, (.97 acres) located at 150 Depot Drive in Corona, APN # 119-320-039 as surplus, as shown on the attached map; 2) Authorize staff to initiate the sixty (60) day public agency notification period and if no interest is expressed, authorize the Executive Director to offer the parcel for sale; and 3) Forward to the Commission for final action. BACKGROUND INFORMATION: In March 1993, the Atchison, Topeka and Santa Fe Railway Company, currently known as the Burlington Northern Santa Fe Railway (BNSF), sold various parcels of land along the San Bernardino & San Jacinto Subdivision corridors to the Riverside County Transportation Commission (RCTC). Various contracts, leases and licenses with individuals, corporations, political bodies, companies and public utilities authorizing their use or occupancy of Santa Fe property were assigned to RCTC as a result of this transaction. Included in the assignment is the property known as the Corona Depot. The Corona Depot is located in the north -central portion of the City of Corona and at the southern edge of the North Main Street District Specific Plan project area. This is a mixed use commercial and industrial district bisected in a north -south direction by North Main Street. The Corona Depot is situated on the north side of Grand Boulevard, contiguous west of the North Main Street overpass, and adjacent south of the BNSF Railroad and Metrolink commuter rail lines. The subject consists of 42,514 square feet of land and a 5,572 square foot former Atchison, Topeka & Santa Fe Railway South Riverside (Corona) Depot building 19 currently leased to the Suko Smith Corporation for use as a bar with a kitchen and appurtenant storage for an annual fee of nineteen thousand two hundred dollars ($19,200). Site improvements include asphalt paved parking areas, light standards, landscaping and fencing. It is further identified as Assessor's Parcel No. 119-320-039. The building improvements (Spanish Colonial Revival architecture style) were originally constructed in 1937. In December 1999, the building was surveyed for historical significance by Myra L. Frank & Associates, Inc. The results of this survey indicate the building is historically significant at the local level. It is further noted that it is probably eligible for the State Historic Register and may be eligible for the National Register. However, it is not currently listed on either the State or National Registers. Staff has identified this property to be of no future use for RCTC and recommends the Committee consider surplusing the property for sale. Attachment: Assessor's Map • 20 THIS MAP IS FOR ASSESSMEN T PURPOSES ONLY /i,• \ \149/\\\ \\� • \\\ .\\`N.SYB .\ 8- 0414. R5 50/N RS/03/If R0 40 /10 IRS 4/ 20 54 9 /1 4 157 0 0SStS ASSE SSOR$ MAP BK. //9 P6 .32 R /VER S/DE COUNTY CALIF POR. SO . R/VERS/DE COL. L ANDS POR . C/TY OF CORONA 3► 8- 4/ TR .A• 004-/4/ 1/ 9- 32 N 70"'JI M -V - sr 3fl 4R/ s ._.,/ ti 4r / 1 T T T /7/ / / / / / `/-Tr% 7R20.1-/ • ' Y a • Z. yy � iEyl 3 .44 O. 1 0 + 3 .11 r,. 40lj- x r 40 A' ssE 2.95�� 9V ib/ Ici3 1. 19 x ` i0 ). 79 K nw .45' s ee. 604- J J. S�f S a 0y- 411 L. - ra4i " .- 211 4. S' -1;F• +c+ G aa 1. IOI.3J-41 MR N :I 0 .R.°. U ( 4r7 ,/00 4 Ptr a J740 0471 501/0 NEN NO. 2, 44 I ibO v 0/90 75 54- 31 I /10 4 /00 7/) 0 75 400 41 )17 taltr n II I O 39,31 40, 41, 42 ARO 43 M.4/ 4 4I 44 00 0I Al iwa 45,47 •4 0, y�Rr M. 8. 94 5-858. So. R/ver sid e Ca/ ony Lands PM. /02/78-80 Pu e/ M op Na /5404 RM. /03/ 37-39 " /69 38 P. M. /43/ 13-14 " " 2/4 54 P M. 161/ 3 - 4 " " " 23258 M. 6 293/14-15 TR NO. 28598-1 NOV /974 d VL%I s, uossass v • AGENDA ITEM 10 • • • • • RIVERSIDE COUNTY TRANSPORTA TION COMMISSION DATE: February 28, 2005 TO: Budget and Implementation Committee FROM: Theresia Trevino, Chief Financial Officer THROUGH: Eric Haley, Executive Director SUBJECT: Annual Investment Policy Review STAFF RECOMMENDATION: This item is for the Committee to: 1) Adopt the Investment Policy, and 2) Forward to the Commission for final action. BACKGROUND INFORMATION: Section XIV of the Investment Policy requires an annual investment policy review and specifically states that the "Chief Financial Officer shall annually render to the Board a statement of investment policy, which the Board must consider at a public meeting. Any changes to the policy shall also be considered by the Board at a public meeting." Based on a review of the Investment Policy approved by the Commission on March 10, 2004 and consideration of changes to the California Government Code as of January 1, 2005, staff in consultation with the Investment Advisor hired by the Commission has determined that no technical changes are required. However, some minor format revisions were made. Staff is recommending adoption of the attached Investment Policy. Attachment: Investment Policy 22 • • • rr.rrrxitie r►urrta- rrrrrxjrtrrlrtthrtt 0117117tfiVNifir7 INVESTMENT POLICY I. Introduction The purpose of this document is to identify policies and procedures that enhance opportunities for a prudent and systematic investment program and to organize and formalize investment -related activities. II. Scope It is intended that this Policy cover all funds (except retirement funds) and investment activities under the direction of the Commission. III. Delegation of Authority Pursuant to the Commission's Administrative Code, the Board's management responsibility for the investment program is hereby delegated for a one-year period to the Executive Director who shall monitor and review all investments for consistency with this investment policy. Subject to review, the Board may renew the delegation of authority pursuant to this section each year. The Executive Director may delegate these duties to his designee ("Chief Financial Officer"). The Commission may delegate its investment decision making and execution authority to an investment advisor. The advisor shall follow this Policy and such other written instructions as are provided. IV. Prudence All persons authorized to make investment decisions on behalf of the Commission are subject to the prudent investor standard. Investments shall be made with care, skill, prudence and diligence under circumstances then prevailing, including, but not limited to, the general economic conditions and the anticipated needs of the Commission that a prudent person acting in a like capacity and familiarity with those matters would use in the conduct of funds of a like character and with like aims, to safeguard the principal and maintain the liquidity needs of the Commission. Authorized individuals acting in accordance with this Policy and written procedures and exercising due diligence shall be relieved of personal responsibility for an individual security's credit risk or market price changes, provided deviations from expectations are reported in a timely fashion. V. Objective The Commission's primary investment objectives, in priority order, shall be: 44 23 1) Safety. Safety of principal is the foremost objective of the investment program. Investments of the Commission shall be undertaken in a manner that seeks to ensure preservation of capital in the portfolio. 2) Liquidity. The investment portfolio of the Commission will remain sufficiently liquid to enable the Commission to meet its cash flow requirements. 3) Return on Investment. The investment portfolio of the Commission shall be designed with the objective of maximizing return on its investments, but only after ensuring safety and liquidity. In order to maximize return on its investments, the Commission seeks an active rather than passive management of portfolio assets. The Commission may from time to time sell securities that it owns in order to better reposition its portfolio assets in accordance with updated cash flow schedules, yield curve optimizations, yield opportunities existing between market sectors, or simply market timing. VI. Investments California Government Code Section 53601 governs the investments permitted for purchase by the Commission. Within the investments permitted by Code, the Commission seeks to further restrict eligible investments to the investments listed in Section VI.1 below. Percentage limitations, where indicated, apply at the time of purchase. Percentage holdings with any one non -governmental issuer are further restricted to a maximum of 10%. Rating requirements where indicated, apply at the time of purchase. In the event a security held by the Commission is subject to a rating change that brings it below the minimum specified rating requirement, the Chief Financial Officer shall notify the Board of the change. The course of action to be followed will then be decided on a case -by -case basis, considering such factors as the reason for the rate drop, prognosis for recovery or further rate drops, and the market price of the security. 1. Eligible Investments A. U.S. Government Issues. United States Treasury notes, bonds, bills, or certificates of indebtedness, or those for which the faith and credit of the United States are pledged for the payment of principal and interest. B. Federal Agency Securities. Federal agency or United States government -sponsored enterprise obligations, participations, or other instruments, including those issued by or fully guaranteed as to principal and interest by federal agencies or United States government -sponsored enterprises. C. Repurchase Agreements. Repurchase agreements are to be used solely as short- term investments not to exceed 30 days. The Commission may enter into repurchase agreements with primary government securities dealers rated "A" or better by two nationally recognized rating services. Counterparties should also have (i) a short-term credit rating of at least A -1/P-1; (ii) minimum assets and capital size of $25 billion in assets and $350 million in capital; (iii) five years of acceptable audited financial results; and (iv) a strong reputation among market participants. 45 • • • • • The following collateral restrictions will be observed: Only U.S. Treasury securities or Federal Agency securities, as described in V.1 A and B, will be acceptable collateral. All securities underlying repurchase agreements must be delivered to the Commission's custodian bank versus payment or be handled under a properly executed tri-party repurchase agreement. The total market value of all collateral for each repurchase agreement must equal or exceed 102 percent of the total dollar value of the money invested by the Commission for the term of the investment. For any repurchase agreement with a term of more than one day, the value of the underlying securities must be reviewed on an on -going basis according to market conditions. Market value must be calculated each time there is a substitution of collateral. The Commission or its trustee shall have a perfected first security interest under the Uniform Commercial Code in all securities subject to repurchase agreement. The Commission shall have properly executed a PSA agreement with each counterparty with which it enters into repurchase agreements. D. U.S. Corporate Debt. Medium -term notes, defined as all corporate and depository institution securities with a maximum remaining maturity of five years or less, issued by corporations organized and operating within the United States or depository institutions licensed by the United States or any state and operating within the United States. Eligible investment shall be rated "AA" or better by one or more nationally recognized rating service. Investments in U.S. Corporate Debt are further limited to 30% of surplus funds. E. Commercial Paper. Commercial paper rated in the highest category by one or more nationally recognized statistical rating organization (NRSRO). The entity that issues the commercial paper shall meet all of the following conditions in either paragraph (1) or paragraph (2): (1) The entity meets the following criteria: (A) Is organized and operating in the United States as a general corporation. (B) Has total assets in excess of five hundred million dollars ($500,000,000). (C) Has debt other than commercial paper, if any, that is rated "A" or higher by a NRSRO. (2) The entity meets the following criteria: (A) Is organized within the United States as a special purpose corporation, trust, or limited liability company. (B) Has program -wide credit enhancements, including, but not limited to, over collateralization, letters of credit, or surety bond. (C) Has commercial paper that is rated "A-1" or higher, or the equivalent, by a NRSRO. Purchases of eligible commercial paper may not exceed 270 days maturity nor represent more than 10 percent of the outstanding paper of an issuing corporation. Investments in commercial paper are limited to a maximum of 25% of surplus funds. F. Banker's Acceptances. Banker's acceptances issued by domestic or foreign banks, which are eligible for purchase by the Federal Reserve System. Purchases of banker's acceptances may not exceed 180 days maturity. Eligible banker's acceptances are restricted to issuing financial institutions with short-term paper rated in the highest category by one or more nationally recognized rating service. Investments in banker's acceptances are further limited to 40% of surplus funds with no more than 30% of surplus invested in the banker's acceptances of any one 46 25 commercial bank. G. Money Market Mutual Funds. Shares of beneficial interest issued by diversified management companies that are money market funds registered with the Securities and Exchange Commission under the Investment Company Act of 1940 (15 U.S.C. Sec. 80a-1, et seq.) and that invest solely in U.S. treasuries, obligations of the U.S. Treasury, and repurchase agreements relating to such treasury obligations. The Commission may invest in shares of beneficial interest issued by acompany shall have met either of the following criteria: (1) Attained the highest ranking or the highest letter and numerical rating provided by not less than two nationally recognized rating services. (2) Retained an investment adviser registered or exempt from registration with the Securities and Exchange Commission with not less than five years' experience managing money market mutual funds with assets under management in excess of five hundred million dollars ($500,000,000). The purchase price of shares of beneficial interest purchased pursuant to this subdivision shall not include any commission that the companies may charge. Investments in Money Market Mutual Funds are further limited to 20% of surplus funds. H. Riverside County Pooled Investment Fund ("RCPIF"). The Commission may invest in the Riverside County Pooled Investment Fund. As on -going due diligence, the Chief Financial Officer shall obtain the information listed below: • A description of eligible investment securities and a written statement of investment policy. • A description of the interest calculation, the frequency of interest distributions, and the treatment of gains and losses in the portfolio. • A description of how often the securities are priced, how the securities are safeguarded, and the audit arrangements. • A description of who may invest in the program, how often they may invest, and what size deposits and withdrawals are allowed. • A schedule for receiving statements and portfolio listings. • A fee schedule, and when and how fees are assessed. • The composition of the investment fund for each reporting period. I. State of California Local Agency Investment Fund ("LAIF"). The Commission may invest in LAIF. As on -going due diligence, the Chief Financial Officer shall obtain the information listed below: • A description of eligible investment securities and a written statement of investment policy. • A description of the interest calculation, the frequency of interest distributions, and the treatment of gains and losses in the portfolio. • A description of how often the securities are priced, how the securities are safeguarded, and the audit arrangements. 47 • • • 26 • • • • A description of who may invest in the program, how often they may invest, and what size deposits and withdrawals are allowed. • A schedule for receiving statements and portfolio listings. • A fee schedule, and when and how fees are assessed. • The composition of the investment fund for each reporting period. J. Certificates of Deposit. Federal Deposit Insurance Corporation (FDIC) insured or fully collateralized time certificates of deposit in financial institutions located in California. Eligible investments are restricted to those issuing institutions that have been in business at least five years and whose senior debt obligations are rated "AA" or better by one or more nationally recognized rating service. The maximum term for deposits shall be one year. Investments in certificates of deposit are further limited to 20% of surplus funds. All time deposits must be collateralized in accordance with California Government Code section 53561. The Commission, at its discretion, may waive the collateralization requirements for any portion of the deposit that is covered by federal insurance. 2. Eligible Investments for Bond Proceeds Bond proceeds shall be invested in securities permitted by the applicable bond documents. If the bond documents are silent as to permitted investments, bond proceeds will be invested in securities permitted by this Policy. With respect to maximum maturities, the Policy authorizes investing bond reserve fund proceeds beyond the five years if prudent in the opinion of the Chief Financial Officer. 3. Ineligible Investments As provided in California Government Code Section 53601.6, the Commission shall not invest any funds in inverse floaters, range notes, mortgage derived interest -only strips or in any security that could result in zero interest accrual if held to maturity. The purchase of any security not listed in Section VI.1 above, but permitted by the California Government Code, is prohibited unless the Board approves the investment either specifically or as a part of an investment program approved by the Board. VII. Maximum Maturities Maturities of investments will be selected to provide necessary liquidity, minimize interest rate risk, and maximize earnings. Current and expected yield curve analysis will be monitored and the portfolio will be invested accordingly. Because of inherent difficulties in accurately forecasting cash flow requirements, a portion of the portfolio should be continuously invested in readily available funds. Where this Policy does not specify a maximum remaining maturity at the time of the investment, no investment shall be made in any security, other than a security underlying a repurchase or reverse repurchase agreement authorized by this section, that at the time of the investment has a term remaining to maturity in excess of five years, unless the Board has granted express authority to make that investment either specifically or as a part of an 48 27 investment program approved by the Board no less than three months prior to the investment. VIII. Performance Standards The Chief Financial Officer shall continually monitor and evaluate the portfolio's performance. A comparison of the portfolio's performance against a performance benchmark shall be included in the Chief Financial Officer's quarterly report. The Chief Financial Officer shall select an appropriate, readily available market index to use as a performance benchmark. IX. Reporting The Chief Financial Officer shall prepare and provide to the Board and the Executive Director, within 30 days following the end of the quarter, a portfolio report, which includes the following information: • Type of investment • Name of issuer • Date of maturity • Date of purchase • Par value • Original purchase cost • Amortized cost • Accrued interest • Call date (if applicable) • Current market value of securities • Unrealized market value gain/loss • Coupon rate, if applicable • Yield to maturity • Yield at market • Credit quality, as determined by one or more nationally recognized credit rating services, of each investment • Average duration of portfolio • Listing of all investment transactions during the quarter • A statement that the portfolio complies with the investment policy, or the manner in which the portfolio is not in compliance • A statement denoting the ability of the Commission to meet its liquidity requirements for the next six months, or provide an explanation as to why sufficient money shall, or may not be, available X. Investment Procedures The Chief Financial Officer, as the Board's designee, is responsible for ensuring compliance with the Commission's investment policies and establishing written procedures and internal controls for the operation of the investment program. No person may engage in investment transactions except as provided under the terms of this Policy and the written procedures established by the Chief Financial Officer. The written procedures should address: delegation of authority to subordinate staff members, control of collusion, separation of transaction 49 • • • 28 • • • authority from accounting and record keeping, written confirmations of transactions, reconciliation of custody statements, and wire transfer procedures and agreements. An independent analysis by an external auditor shall be conducted annually to review internal control, account activity, and compliance with policies and procedures. XI. Authorized Broker Dealers and Financial Institutions The Chief Financial Officer shall maintain a list of authorized broker/dealers and financial institutions which are approved for investment purposes. It shall be the Commission's policy to purchase securities only from those authorized institutions and firms. Separate lists shall be maintained for broker/dealers and financial institutions approved for repurchase agreements and those approved for the purchase of other securities. If an investment advisor is used, they may use their own list of approved broker/dealers and financial institutions for investment purposes. To be eligible, a firm must meet the following minimum criteria: (i) an institution licensed by the state as a broker -dealer, or from a member of a federally regulated securities exchange, from a national or state -chartered bank, from a federal or state association or from a brokerage firm designated as a primary government dealer by the Federal Reserve bank; and (ii) all broker/dealer firms and individuals must be properly registered with the NASD and/or SEC to transact business in the relevant geographic locations and product sectors. In addition, counterparties for Repurchase Agreements shall be limited to primary government securities dealers rated "A" or better by two nationally recognized rating services. Counterparties shall also have (i) a short-term credit rating of at least A -1/P-1; (ii) minimum assets and capital size of $25 billion in assets and $350 million in capital; (iii) five years of acceptable audited financial results; and (iv) a strong reputation among market participants. The Chief Financial Officer shall select broker/dealers and other financial institutions on the basis of the firm's expertise and credit worthiness. The Commission shall annually send a copy of the current investment policy to all dealers approved to do business with the Commission. Each broker dealer or financial institution that has been authorized by the Commission shall be required to submit and annually update a Broker/Dealer Questionnaire which includes the firm's most recent financial statements. The Chief Financial Officer shall maintain a file for each firm approved for investment purposes, which includes the most recent Broker/Dealer Questionnaire. XII. Safekeeping and Custody To protect the Commission's assets, all securities owned by the Commission shall be held in safekeeping in the Commission's name by a third party bank trust department, acting as agent for the Commission under the terms of a custody agreement executed by the bank and the Commission. All securities will be received and delivered using standard delivery versus payment (DVP) procedures; the Commission's safekeeping agent will only release payment for a security after the security has been properly delivered. Physical delivery securities shall be avoided whenever possible, as book entry securities are much easier to transfer and account for since actual delivery of a document never takes place. In addition, delivered securities must be properly safeguarded against loss or destruction. The potential for fraud and loss increases with physically delivered securities. 50 29 XIII. Ethics and Conflicts of Interest The Commission adopts the following policy concerning conflicts of interest: 1. Officers and employees involved in the investment process shall refrain from personal business activity that could conflict with proper execution of the investment program or which could impair their ability to make impartial investment decisions. 2. Officers and employees involved in the investment process shall disclose any material financial interest in any financial institution that conducts business with the Commission, and they shall further disclose any large personal financial/investment positions that could be related to the performance of the Commission's portfolio. 3. Officers shall refrain from undertaking personal investment transactions with the same individual with whom business is conducted on behalf of the Commission. XIV. Investment Policy Review The Chief Financial Officer shall annually render to the Board a statement of investment policy, which the Board must consider at a public meeting. Any changes to the policy shall also be considered by the Board at a public meeting. 51 • 30 • AGENDA ITEM 11 • • • • • RIVERSIDE COUNTY TRANSPORTA TION COMMISSION DATE: February 28, 2005 TO: Budget and Implementation Committee FROM: Theresia Trevino, Chief Financial Officer THROUGH: Eric Haley, Executive Director SUBJECT: Proposed Policy Goals and Objectives for Fiscal Year Budget 2005/06 STAFF RECOMMENDATION: This item is for the Committee to: 1) Approve the proposed Commission Policy Goals and Objectives for the Fiscal Year 2005/06 Budget, and 2) Forward to the Commission for final action. BACKGROUND INFORMATION: The initial step in the budget process is to develop policy goals and objectives for the fiscal year. These goals and objectives are to be consistent with the Commission's overall strategic direction. As a result of the renewal of Measure "A" in November 2002, this year's goals and objectives reflect the continuation of the transition planning efforts related to the current and new Measure A and the delivery of promises made to the citizens of the County of Riverside. Using the Commission's guiding principles, staff has updated the attached Goals and Objectives for the Fiscal Year 2005/06 Budget. Attachment: Proposed Goals and Objectives for FY 2005/06 Budget 31 • • • Commission Policy Goals and Objectives The following material outlines those adopted policy goals and objectives as well as financial policies that have served as the framework for the work plan presented in the FY 2005/06 Budget. Mobility The Commission, in cooperation with local, state, and federal agencies, will strive to create a transportation system that promotes efficient mobility both within the county and regionally. Following the reduction of state transportation funding and the deferral of the federal reauthorization of the Transportation Equity Act for the 21st Century (TEA21), the Commission faces a year of selective strategic opportunities and significant challenges. • Initiate and complete the prioritization of Measure "A" highway projects covering the two expenditure plans from 2005 through 2019. • Direct work on the project level environmental document for the Mid -County Parkway, a new CETAP corridor. • Support the MIS process to examine and analyze route alternatives for the intercounty corridor linking Riverside County to Orange County. • Actively participate in the SR -91 Advisory Committee to facilitate near and long- term improvements to SR -91; enhance intercounty public transit options and foster the development of a new corridor between the two counties. • Work closely with local jurisdictions to implement the FY2005-2009 Transportation Uniform Mitigation Fee (TUMF) Regional Arterial Program and facilitate the delivery of arterial improvements in Western Riverside County. • Assure the ongoing effectiveness of the SRTP process and work with the County's eight transit operators through the Commission's standing Transit Policy Committee to assure efficiency and effectiveness. • Coordinate regional transit connections among commuter rail, buses, and paratransit services to ensure convenient service for passengers. • Coordinate and provide public access to commuter information to foster the use of alternate modes of transportation such as ridematching services, transit schedules and trip planner, real time traffic information, and vanpool options. Goods Movement The Commission will work with federal, state, and local governments to facilitate the movement of goods and services to, within, and through the county, recognizing the vital role mobility plays in the economic health of the County, the state, and the nation. • Work with county transportation commissions, local jurisdictions, Southern California Regional Rail Authority (SCRRA or Metrolink), the Southern California 32 Association of Governments (SCAG), and the private railroad companies toward the implementation of a coordinated regional approach to increase rail and highway capacity for goods movement that includes environmental and community impact mitigation. • Seek funding to implement the Commission's approved, high -priority railroad grade separation priority list to mitigate the impact of increased goods movement demands on the transportation system with special emphasis on obtaining recognition as part of the reauthorization of the federal transportation act. • Promote the use of rail corridors (including the Perris Valley Line within funding constraints) as an alternative to trucks for the movement of freight within the County and the region. • Support the efficient use of March ARB to address regional air freight demand and resulting ground access infrastructure needs. • Advocate inclusion of goods movement policies and projects for Southern California in the reauthorization of the federal transportation act. Congestion Relief and Safety Improvements The Commission will select projects and allocate funds in a manner that will improve safety and reduce congested traffic corridors. • Work with local jurisdictions and Caltrans to develop mitigation measures and strategies to address congested corridors and areas impacted by construction. • Provide innovative commuter rideshare programs to reduce single occupant vehicle trips and coordinate with other regional rideshare service providers to address intercounty commute trips. • Continue to work with state and federal agencies to program and construct projects in the STIP, the Measure "A" program, and other high priority projects. • Work with Caltrans and the California Highway Patrol (CHP) to continue providing a motorist aid system which includes a call box program and a freeway service patrol program including temporary services in freeway construction zones. • Advocate streamlining efforts at the state and federal levels to facilitate timely project reviews and approvals. • Maximize the effective application and use of TUMF funds to deliver eligible Commission priority projects. Air Quality The Commission's transportation planning will be designed to achieve clean air standards while fostering economic growth and improving quality of life. • Work with the Southern California Association of Governments (SCAG), the South Coast Air Quality Management District (SCAQMD), sub -regional agencies, and local jurisdictions to develop and implement a regional transportation plan that meets regional air quality goals and conformity guidelines. • 33 • • • • Support outreach and educational programs that promote the benefits of ridesharing and availability of help through www.CommuteSmart.info and 1 -800 - COMMUTE. • Facilitate private/public use of clean fuels technology. • Encourage the continued purchase of clean fuel buses by transit operators and the conversion to clean fuels for other transit vehicles. Economic Development Transportation decisions will consider the economic benefits derived from any improvement, and, where feasible and practical, will pursue transportation alternatives that enhance or complement economic development. • Support local agencies in the design and construction of interchanges that are in proximity to regional economic centers and developments. • Foster the development of transportation technology research, education, and training efforts of public institutions within the County. • Support local projects, consistent with countywide transportation goals, which enhance business development, local employment, and area tourism. Intermodalism and Accessibility County residents will be served, where economically feasible, through the development of transportation alternatives that consider the needs of a wide range of citizens. • Work with transit providers and local social service agencies to provide specialized transit service to meet a broad spectrum of socio-economic transit needs. • Implement the Commission's commuter rail SRTP and the SCRRA long-range strategic plan for expansion of the commuter rail system benefiting Riverside County constituents with an emphasis on the Perris Valley Line, an extension from Riverside to Perris via Moreno Valley. • Participate in the study of high-speed rail options and support efforts for eventual implementation of a statewide high-speed rail system with emphasis on the pilot project being in Southern California and including the integration of existing rail passenger services. Technological Innovation The Commission will advocate the development and use of advanced technologies for transportation applications that are affordable and practical. • Encourage the development of a regional smart -card to increase the level of convenience for transit users. • Continue development, in partnership with Caltrans and San Bernardino Associated Governments (SANBAG), of the Inland Empire Transportation Management Center and seek funding for its construction. 34 • Work with public and private interests to apply real time technology to disseminate commuter information that will support the use of alternate modes and improve efficiency of the regional transportation system. Public and Agency Communications The Commission will provide timely, informative, and accurate information to encourage informed public and agency participation in the Commission's decision -making processes. • Promote a close working relationship with news and civic entities to increase interest in and understanding of transportation and related issues. • Enhance the provision of public information through various forms of communication (e.g., website, cable TV, Speakers' Bureau, print media, etc). • Maintain an ongoing effort of informing Riverside County's Congressional and State Legislative delegations regarding County transportation issues. • • • 35 • • • Financial and Administration Policies Operating Budget Policies • The Commission shall budget no more than one percent (1%) of Measure "A" sales tax revenue for administrative salaries and benefits. • Administrative program delivery costs will be budgeted at whatever is reasonable and necessary, but not to exceed four percent (4%) of Measure "A" sales tax revenues (inclusive of the one -percent salary limitation). • Amounts will be budgeted by fiscal year for multi -year projects based on best available estimates with the understanding that, to the extent actuals vary from those estimates and the project is ongoing, adjustments will be made on an ongoing basis. • The fiscal capital budget should be consistent with the strategic plan and deviations appropriately noted, explained, and justified. Revenue Policies • Sales tax revenue projections will be revised semi-annually to ensure use of current and relevant data. Staff may adjust annual amounts to reflect the most current economic trends. • Federal and state matching funds will be used where possible and available to supplement the use of local funding sources. • Exercise fiduciary responsibility regarding TUMF revenues and allocate revenues pursuant to Commission direction and the approved Measure "A" renewal of 2002. Debt Management Policies • The Commission will maintain 2.0x debt ratio coverage on all senior debt. • Debt issuance will be for major capital projects including engineering, construction, and right of way. Operating requirements must be from current ongoing revenues. • Costs of issuance including the standard underwriter's discount will not exceed two percent (2%). • While it is the intent of the Commission to establish a cash debt reserve for long term bond issuance, obtaining surety bonds can be obtained when beneficial to the Commission. • The commercial paper program will provide advance funding for projects included in the expenditure plan of the approved Measure "A" renewal of 2002. Auditing, Accounting, and Financial Reporting Policies • The Commission will issue a Comprehensive Annual Financial Report (CAFR) in accordance with the Governmental Accounting Standards Board (GASB) Statement 34 new financial reporting model. 36 • An audit is to be conducted annually on Commission accounting books and records. As long as the Commission has outstanding bonds, an independent accounting firm must conduct the audit. • The Commission is responsible for ensuring that audits of Measure "A" and Transportation Development Act funding recipients are completed and reviewed for compliance and other matters in a timely manner. Capital Planning and Programming Policies • Established priorities will be reviewed annually via a series of workshops and/or policy maker retreat. Reserve Policies • The Commission will maintain a cash reserve at least equal to five percent (5%) of annual revenues (exclusive of reimbursements and matching funds). • The Commission will establish and maintain a transit operator's reserve of 10% for the Coachella Valley and Palo Verde Valley. Additionally, a 10% reserve will be established and maintained for each of the Western Riverside transit operators (public bus and commuter rail). Cash Management/Investment Policies • Where possible, the Commission will encourage receipt of funds by wire transfer to its accounts. • Balances in the bank operating account will be maintained at the amount necessary to meet monthly expenditures. • Idle funds will be invested per the Commission's established investment policy emphasizing in order of priority: 1) safety, 2) liquidity, and 3) yield. • Cash disbursements to local jurisdictions and vendors/consultants will be completed in an expeditious and timely manner. Human Resources Management Policies • Commission staffing levels will be consistent with the intent of its enabling legislation, which envisioned a small, but effective staff. • Consultants will be used to augment staff efforts as much as possible to support programs or work loads, which do not appear to be of a permanent nature. Information Technology Policies • Adequate technology infrastructure will be delivered by continuing to upgrade key network equipment in order to maintain performance and connectivity among the software programs and staff and to continue to have additional security measures in place on the network to reduce the impact of virus/worm outbreaks. • • • • AGENDA ITEM 12 • • • RIVERSIDE COUNTY TRANSPORTA TION COMMISSION DATE: February 28, 2005 TO: Budget and Implementation Committee FROM: Audit Ad Hoc Committee Theresia Trevino, Chief Financial Officer THROUGH: Eric Haley, Executive Director SUBJECT: Fiscal Year 2003/04 TDA and Measure A Audit Results AUDIT AD HOC COMMITTEE AND STAFF RECOMMENDATION: This item is for the Committee to: 1) Receive and file the preliminary Transportation Development Act (TDA) and Measure A audit results report for the Fiscal Year 2003/04, and 2) Forward to the Commission for final action. • BACKGROUND INFORMATION: In April 2003, Caporicci & Larson (C&L) was selected to perform the audits of Riverside County's TDA claimants and Measure A recipients, except for the Riverside Transit Agency (RTA) which elected to select its audit firm. This is the second year that C&L has performed these audits for the Commission. C&L has completed the audits of and issued the audit reports for most of the local governments, non-profit agencies, and transit agencies that received TDA and Measure A funds. Professional auditing standards require the auditors to communicate to the audit committee, or an equivalent group, to ensure additional information is provided regarding the scope and results of the audit that may assist in overseeing management's financial reporting and disclosure process related to the TDA claimants and Measure A recipients. Such communications related to C&L's responsibilities and approach, summary of results, and preliminary findings were reviewed with the Audit Ad Hoc Committee in an audit results presentation by Caporicci & Larson on February 22, 2005. Following are highlights from C&L's presentation: • Of the $99,118,000 distributed related to Measure A, State Transit Assistance, and Transportation Development Act, $58,155,000, or 58.7%, was audited by C&L. This comprised 33 recipients who received funds for transit, local streets and roads, and bicycle and pedestrian project purposes. 38 • $40,963,000, or 41.3%, was not audited. The majority of these disbursements were related to TDA planning and administration funds to agencies, including the Commission, as well as the funds distributed to RTA, which were audited by another firm. • As of February 18, 2005, 29 reports were issued. Fieldwork was substantially completed for four additional recipients; issuance of these final reports was pending resolution of open items and completion of quality review procedures. Fieldwork has not commenced for three recipients due to scheduling and other issues; four reports will be issued for these recipients. • Findings and observations will be discussed. Attached is the summary of transportation and transit fund operations and related audit results for the various types of TDA (Articles 3, 4, and 8) and Measure A (specialized transit and local streets and roads) funding. Each schedule provides information for each claimant and recipient regarding the revenues, expenditures/expenses, and change in fund balance/net assets for the year ended June 30, 2004; other financial and compliance information; summary of observations and findings; and other information pertaining to the status or scope of work performed. As a result of the information reviewed at the Audit Ad Hoc Committee meeting, staff has been requested to perform follow-up related to the audits which have not been completed and to the observation regarding Measure A fund balance accumulations. When this information is complete, staff will meet again with the Audit Ad Hoc Committee to review the final results. Attachments: 1) Transportation Development Act Article 3 Schedule 2) Transportation Development Act Article 4 Schedule 3) Transportation Development Act Article 8 Schedule 4) Measure A Specialized Transit Schedule 5) Measure A Local Streets and Roads Schedule and Comments 6) Presentation to the Audit Committee • 39 • • Transp ortation Development Act Article 3 Schedule Year Ended June 30, 2004 (Note 1) (Note 2) Cathedral Moreno Palm County of San Banning City Corona Hemet Indio Valley Murrieta Springs Perris Riverside Riverside Jacinto Revenues: Intergovernmental allocations: Article 3 $198,433 $ 11,574 $ 459 $ 60,000 $ 32,841 $ 88,000 $ 16,672 $ - $233,655 $ 78,330 Other revenues - - 60,000 - - Interest income 171 - 1,037 - - 602 (429) 474 Total revenues 198,604 11,574 459 60,000 33,878 - 88,000 16,672 60,602 233,226 78,804 Total expenditures 400,738 11,574 19,618 217,604 33,878 200,860 16,672 133,258 233,226 78,804 Excess (deficiency) of revenues over (under) expenditures (202,134) (19,159) (157,604) - (112,860) (72,656) Transfers in (out) 198,433 19,159 157,604 112,860 - 70,000 Excess (deficiency) of revenues and 0O transfers in over (under) expenditures (3,701) (2,656) - - Prior period adjustment - - - (33,878) - (57,039) (3,273) Fund balances at beginning of year 10,348 - - 33,878 490,345 - - 59,466 57,039 3,273 Fund balances at end of year $ 6,647 $ $ $ - $ - $ 490,345 $ - $ - $ 56,810 $ - $ - $ - Deferred revenues at end of year $ - $ - $ - $ - $ 1,092 $ - $ - $ - $ 9,859 $ Source: 2004 Financial Statements Note 1 Moreno Valley audit fieldwork has been completed; however, report issuance is pending completion of open items and auditors' quality control review procedures. Note 2 County of Rive rside audit has not commenced, as FY2002/03 audit re port has not been issued . Open items have been resolved and prior report issuance is expected by February 18, 2005. FY 2003/04 audit will be scheduled follo wing release of FY2002/03 report. Summary of Observations (Article 3 allocations are for specific bicycle and pedestrian protects approved by the Commission) 1 City of Banning has been requested to provide a summary of outstanding projects, if any, related to the ending fund balances as of June 30, 2004 and the actual or estimated completion date(s). City of Perris has provided a summary indicating that fund balance relates to developer contribution for a sidewalk proje ct that should be completed by 6/30/05. 2 City of Indio deferred revenue at June 30, 2004 re lates primarily to interest income received but not expe nded on an eligible project. 3 City of Riverside deferred revenue at June 30, 2004 relates primarily to Article 3 allocations received but not expended on an eligible project. Section 99234 2/22/2005 Transportation Development Act Article 4 Schedule Year Ended June 30, 2004 (Note 1) (Note 2) (Note 3) Banning Beaumont Corona Riverside PVVTA SunLine RTA Total operating revenues $ 98,527 $ 185,332 $ 3,135,073 $ 5,534,326 Operating expenses: Depredation and amortization 169,224 330,080 2,279,820 7,244,768 Other operating expenses 833,575 1,955,439 16,342,543 37,073,869 Total operating expenses 1,002,799 2,285,519 18,622,363 44,318,637 Operating loss (904,272) - (2,100,187) (15,487,290) (38,784,311) Nonoperating rev enues (expenses): Grants: Local Transportatio n Funds 1,283,394 1,649,558 10,069,681 25,643,806 Sta te Transit Assistance 15,728 5,792 437,940 3,075,533 Federal 88,901 1,548,178 10,244,963 M easure A specialized transit - 3,022,381 452,325 Other - 2,598,445 36,000 Interest income 6,399 18,703 132,257 Interest ex pense - - (93,733) (512,485) Gain (loss) on sale of property 12,202 - (429,405) Other - 23,807 Total nonoperating revenue (expense) 1,305,521 1,756,453 17,601,595 38,666,801 Net increase (decrease) 401,249 (343,734) 2,114,305 (117,510) Capital grants equity at beginning of year 371,416 3,327,568 Net assets/Retained eamings at beginning of year 268,569 220,389 1,199,906 1,333,611 56,603 1,677,866 33,587,530 Net assets at end of year (GASB 34) $ 1,061,234 $ 220,389 $ 1,199,906 $ 989,877 $ 56,603 $ 7,119,739 $ 33,470,020 Deferred revenue at end of year: Operating $ 82,577 $ - $ 767,921 $ 4,300,000 Capital 94,825 33,897 2,119,567 2,490,562 Total deferred revenue at end of year $ 177,402 $ $ - $ 33,897 $ - $ 2,887,488 $ 6,790,562 Required fa re ra tio 10.00% 10. 00% 20.00% 10.00% 10.00% 16.11% 17.40% Actual fare ratio 11.80% 10.10% 19 .18 % 18.020/ Fare ratio compliance status Met Met Met Met Source: 2004 Financial Statements Note 1 Beaumont audit has not commenced due to scheduling issues. Note 2 Palo Verde Valley Transit Agency audit has been completed. Report issuance is pending completion of open items and audito rs' quality control review procedures. Note 3 RTA elected to select its independent public accounting firm, which met the requirements set forth by the Commission in January 1998. Summary of Findings: 1 SunLine Transit Agency. Two findings were noted. (1) Impairment of amounts due from SunLine Services Group aggregating $869,489 as of June 30, 2004 . On July 14, 2004, Commission appro ved transfer of certain SSG assets be nefiting transit operations with a fair value of $1,142,000. (2) Continuation of prior year finding that SunLin e Transit Agency obtained a loan for SSG related to a program to provide CNG vehicles to the taxi industry in the Coachella Valley. As of June 30, 2004, TDA and M easure A funds have not been used to make the monthly debt servic e pa yments and SSG had not defaulted on the making such payments. Section 1111 • 02005 • • Transportation Development Act Article 8 Schedule Year ended June 30, 2004 (Note 1) County of Blythe Riverside Revenues: Intergovernmental allocations: Article 8 $ Other revenues Interest income 3,327 Total revenues 3,327 Total expenditures 500,105 Excess (deficiency) of revenues over (under) expenditures (496,778) Prior period adjustments Fund balances at beginning of year Fund balances at end of year Source: 2004 Financial Statements (6,526) 460,780 $ (42,524) $ Note 1 County of Riverside audit has not commenced, as FY2002/03 audit report has not been issued . Open items have been resolved and prior report issuance is expected by February 18, 2005. FY 2003/04 audit will be scheduled following release of FY2002/03 report. Summary of Observations (Article 8 allocations for Western County and Coachella Valley ended in 1993 and 1987, respectively, as available LTF funds are now used to meet transit needs. Article 8 allocations for Palo Verde Valley are subject to an annual unmet needs hearing .) 1 City of Blythe deficit fund balance will be eliminated by transfers from other fund(s). Section 99400 (a) 2/22/2005 Measure A Specialized Transit Schedule Year Ended June 30, 2004 (Note 3) (Note 2) (Note 1A) (Note 1A) (Note 1A) (Note 1B) Inland Partners for Friends of Aids Independent Volunteer Moreno Blindness Care -A -Van Project Living Center Valley Support Exceed DPI Operating revenues: Measure A Interest income Other revenue Total operating revenues Total operating expenses Excess (deficiency) of ope rating revenues over (under) operating expenses Nonoperating revenue: Transfers in (out) Change in net assets Prior period adjustment Net assets at beginning of year Net assets at end of year $ 181,500 $ 227,989 $ 29,157 $ 39,707 $ 49,800 N/A - 310 181,500 228,299 170,216 228,299 11,284 11,284 10,063 9,395 3,144 32,728 $ 30,742 $ 3,144 $ - $ 32,728 Match requirement $ 181,000 $ 178,755 Actual match $ 185,000 $ 444,135 $ 42,677 $ 24,190 N/A Match requirement compliance status M et Met Met Met N/A $ 84,557 $ 39,561 $ 32,238 N/A Source: 2004 Financial Statements Note 1A Full -scope audit was not performed due to grant amounts and/or purpose; however, agreed -upon procedures were performed related to th e agreement and grant expenditures. Note 1B DPI provided administration services for the taxi demonstration program. Agreed -upon procedures were performed related to the agreement. Note 2 Volunteer Center audit has not commenced due to scheduling issues. Note 3 Fieldwork has been completed; however, report issuance is pending completion of open items and auditors' quality control review procedures. Summary of Observations (Measure A specialized transit grants are provided in two-year cycles, most recent cycle ended June 30, 2004) and Findings 1 Care -A -Van has be en requested to consider the disposition of the balance of net assets (return to RCTC or request carryover to subsequent cycle) . 2 Exceed received four of six vehicles which were funded and has been requested to provide a status re port on the purchase of the two remaining vehicles. 3 Findings reported for DPI related to review of December 2003 reporting resulting in understatement of 10 passengers and overstatement of 28 trips . These findings did not affect amount billed to RCTC. Measu ecialized Transit • ./2005 • • Measure A L ocal Streets and Roads Schedule Year ended June 30, 2004 Revenues: Intergovernme ntal allocations: Measure A $ 622,218 $ 156,988 $ 3,864,040 $ 1,704,855 $ 893,594 $ 1,407,711 $ 753,559 SB 821 Grant Reimbursement - Developer contribution - - CM AQ reimbursements - 154,801 State Traffic Congestion Relief reimbursements - 497,790 - Reimbursements from other governmental agencies - 67,064 - Reimbursements from regional arterial program - - Other revenues - 3,500 45,207 - Interest income 7,439 5,677 72,108 39,253 3,762 14,267 35,922 -P Total revenues 629,657 - 162,665 4,659,303 1,789,315 897,356 - 1,421,978 789,481 Expenditures: Construction and maintenance 924,125 3,258 5,417,891 2,602,671 206,328 397,350 921,009 Engineering and administration - 151,348 - - Regional arterial improvements - - - - Debt se rvice: Principal - 380,441 - 399,225 - 213,045 Interest - 137,591 - 23,505 64,389 Total expenditures 924,125 - 3,258 6,087,271 2,602,671 629,058 397,350 1,198,443 Excess (deficiency) of revenues over(under)expenditure s (294,468) - 159,407 (1,427,968) (813,356) 268,298 1,024,628 (408,962) County loan - - - Transfers in (out) (198,433) - 149,930 (80,000) - (445,543) Excess (deficiency) of revenues and transfers in over (under) expenditures (492,901) - 159,407 (1,278,038) (813,356) 188,298 - 1,024,628 (854,505) Prior period adjustment - - - 1,408 1,201,829 Fund balances at beginning of year 1,036,930 510,801 325,745 7,681,815 3,077,042 309,686 8,893,783 3,310,070 4,222,942 Fund balances at end of year $ 544,029 $ 510,801 $ 485,152 $ 6,403,777 $ 2,263,686 $ 497,984 $ 8,893,783 $ 4,336,106 $ 4,570,266 W estern County Moreno Banning Beaumont Calimesa Corona Hemet Lake Elsinore Valley Murrieta Norco (Note 1A) (Note 2) M easure A LSR 5 of 11 2/22/2005 Measure A Local Streets a nd Roads Sch ed ule Year ended June 30, 2004 Components of fund balances: Reserved for encumbrances Reserved for specific projects Reserved for continuing appropriations Reserved for advances Designated for specific/future projects Unreserved, undesignated Total fund balances by component Fund balance by year received: 2004 2003 cn Ut 2002 2001 2000 1998 Total fund balances by year received Notes payable to RCTC at end of year Amount of Excess M OE at end of year MOE compliance status Source: 2004 Financial Statements Western C ounty —I\7lbren o Banning Beaumont Calimesa Corona Hemet Lake Elsinore Valley Murrieta Norco 544,029 $ 544,029 $ $ 544,029 $ - $ 494,714 $ 93,207 $ 60,000 $ - $ - 5,910,566 - - - 1,463,414 - - - 988,784 485,152 (1,503) 707,065 437,984 - $ 485,152 $ 6,403,777 $ 2,263,686 $ 497,984 $ 4,336,106 3,581,482 - $ 4,336,106 $ 4,570,266 $ 162,665 $ 4,659,303 $ 1,789,315 $ 497,984 $ 1,421,978 $ 789,481 175,306 1,744,474 474,371 - 1,504,995 1,117,103 139,887 - - 1,031,971 595,204 7,294 - 377,162 631,450 1,437,028 $ 544,029 $ - $ 485,152 $ 6,403,777 $ 2,263,686 $ 497,984 $ - $ 4,336,106 $ 4,570,266 $ - $ - $ 2,308,081 $ - $ 173,526 $ - $ 988,784 $ 2,247,858 N/A $ 22,458,112 $ 6,139,819 $ 7,116,156 N/A $ 2,797,240 M et N/A Met Met with us e Met N/A Met (Note 3) of excess (Note 3) MOE Measull, 6• 0/2005 • • Measure A L ocal Str eets and Roads Schedule Year e nded June 30, 2004 Western County Perris 1 Zatre ur C oachella Valley ITesern-T5 Riverside San Jacinto Temecula City Coachella Springs Indian Wells Revenues: Intergovernmental allocations: Measure A $ 965,356 $ 7,822,518 $ 513,491 $ 2,690,003 $1,390,083 $ 370,311 $ 278,032 $ 181,074 SB 821 Grant Reimbursement 70,000 - Developer contribution 20,000 - - - CMAQ reimbursements - State Traffic Congestion Relief reimbursements - - - Reimbursements from other governmental agencies - Reimbursements from regional arterial program - Other revenues - 25,000 147,074 7,136 - - Interest income 51,834 554,493 25,093 61,278 46,115 5,649 8,424 5,167 0) Total revenues 1,107,190 8,402,011 685,658 2,751,281 1,443,334 375,960 286,456 186,241 Expenditures: Construction and maintenance 484,079 6,544,027 828,986 - 1,196,873 370,380 4,416 Engineering and administration - - - - Regional arterial improvements - - Debt service: Principal 164,353 112,416 432,355 - Interest 50,900 34,818 133,900 - - Total expenditures 699,332 6,544,027 976,220 566,255 1,196,873 370,380 4,416 - Excess (deficiency) of revenues over (under) expenditures 407,858 1,857,984 (290,562) 2,185,026 246,461 5,580 282,040 186,241 County loan - 1,000,000 - Transfers in (out) (80,000) (41,570) - (1,820,000) - Excess (deficiency) of revenues and transfers in over (under) expenditures 327,858 1,816,414 709,438 365,026 246,461 5,580 282,040 186,241 Prior period adjustment (202,892) (6,288) - (1,179) Fund balances at beginning of year 2,749,520 35,392,289 1,628,830 4,392,950 2,729,442 804,257 554,645 585,658 Fund balances at end of year $ 3,077,378 $ 37,208,703 $ 2,338,268 $ 4,555,084 $2,969,615 $ 809,837 $ 835,506 $ 771,899 Measure A LSR 7 of 11 2/22/2005 Measure A Local Streets and Roads Sched ule Year ended June 30, 2004 1 Western County —1Coachella Valley —c trerTraT L esei TlRbf— Perris Riverside San Jacinto Temecula City Coachella Springs Indian Wells Components of fund balances: Reserved for encumbrances $ - $ 5,449,866 $ - $ - $ - $ - $ 282,040 $ Reserved for specific projects Reserved for continuing appropriations Reserve d for advances - - Designated for specific/future projects 25,295,941 - - Unreserved, undesignated 3,077,378 6,462,896 2,338,268 4,555,084 2,969,615 809,837 553,466 771,899 Total fund balances by component $ 3,077,378 $ 37,208,703 $ 2,338,268 $ 4,555,084 $2,969,615 $ 809,837 $ 835,506 $ 771,899 Fund balance by year received: 2004 $ 1,107,190 $ 8,402,011 $ 685,658 $ 2,751,281 $1,443,334 $ 375,960 $ 286,456 $ 186,241 2003 1,235,464 9,308,641 599,154 1,803,803 1,526,281 433,877 301,559 227,046 v 2002 734,724 7,969,961 1,053,456 - 245,756 187,621 2001 8,121,254 1,735 170,991 2000 3,406,836 - - - 1998 - - Total fund balances by year received $ 3,077,378 $ 37,208,703 $ 2,338,268 $ 4,555,084 $2,969,615 $ 809,837 $ 835,506 $ 771,899 Notes payable to RCTC at end of year $ 922,666 $ Amount of Excess M OE at e nd of year MOE compliance status Source: 2004 Financial Statements M easurSR - $ 631,751 $ 2,429,710 $ - $ - $ $ 12,498,753 $ 10,953,201 $ 7,456,968 N/A $1,467,322 $1,345,442 $ 320,902 Met Met Met N/A Met Met Met with use (Note 3) of excess MOE 8� 0/2005 • • • Measure A Local Streets and Roads Schedule Year ended June 30, 2004 ri5w> ve ce r----� Coachella Valley I Valley 1 Ranno {County of Indio Palm Desert Palm Springs Mirage Blythe Riverside (Note 1B) Revenues: Intergovernmental allocations: M easureA $ 1,135,897 $ 2,260,912 $ 1,508,298 $ 710,022 $ 849,409 SB 821 Grant Reimburse ment - Developer contribution - CMAQ reimbursements State Traffic Congestion Relie f reimbursements - Reimbursements from other governmental agencies 1,091,870 2,629 Reimbursements from regional arterial program - 315,318 1,685,537 Other revenues 300 - Interest income 69,921 60,651 42,913 (6,376) 29,493 -P Total revenues 1,205,818 3,413,733 1,869,158 2,389,183 878,902 CO Expenditures: Construction and maintenance 1,268,651 6,668,206 935,188 2,211,941 2,296,426 Engineering and administration - - Regio nal arterial improvements - 268,436 Debt service: Principal 270,054 Interest - - Total expenditures 1,538,705 6,668,206 1,203,624 2,211,941 2,296,426 Excess (deficiency) of revenues over (under) expenditures (332,887) (3,254,473) 665,534 177,242 (1,417,524) County loan Transfers in (out) Excess (deficiency) of revenues and transfe rs in over (under) expenditures (332,887) (3,254,473) 665,534 177,242 (1,417,524) Prior period adjustment (54,720) - - Fund balances at beginning of year 4,443,288 7,181,669 3,884,214 2,206,240 2,487,921 Fund balances at end of year $ 4,055,681 $ 3,927,196 $ 4,549,748 $ 2,383,482 $ 1,070,397 $ Measure A LSR 9 of 11 2/22/2005 Measure A Local Streets and Roads Schedule Year ended June 30, 2004 rin rPerde r____1 Coachella Valley I Valley 1 "Ranno o County of Indio Palm Desert Palm Springs Mirage Blythe Riverside Components of fund balances: Reserved for encumbrances Reserved for specific projects Reserved for continuing appropriations Reserved for advances Designated for specific/future projects Unreserved, undesignated Total fund balances by component Fund balance by year received: $ 860,125 $ 1,181,671 $ 222,689 $ 2,802,428 3,281,439 2,160,793 264,643 - - 4,055,681 86,638 1,070,397 $ 4,055,681 $ 3,927,196 $ 4,549,748 $ 2,383,482 $ 1,070,397 $ 2004 $ 1,205,818 $ 3,413,733 $ 1,869,158 $ 2,383,482 $ 878,902 2003 1,315,046 513,463 1,809,843 191,495 -P 2002 1,206,966 - 870,747 - 2001 327,851 - 2000 - 1998 - - Total fund balances by year received $ 4,055,681 $ 3,927,196 $ 4,549,748 $ 2,383,482 $ 1,070,397 $ Notes payable to RCTC at end of year $ - $ - $ - $ - $ Amount of Excess M OE at end of year $ 12,897,148 $ 53,228,056 $ 19,411,203 $ 24,365,192 $ 2,825,537 MOE compliance status Source: 2004 Financial Statements Met Met Met Met Met MeasuriR 100 •/2005 • • • Measure A L ocal Streets and R oads Schedule Year Ended June 30, 2004 Note 1A Beaumont audit has not commenced due to scheduling issues . Note 1B County of Riverside audit has not commenced, as FY2002/03 audit report has not been issued . Open items have been resolved and prior report issuance is expected by February 18, 2005. FY2003/04 audit will be scheduled following release of FY2002/03 report. Note 2 Moreno Valley audit fieldwork has been completed; however, report issuance is pending completion of open items and auditors' quality control review procedures. Note 3 MOE requirement does not apply as city incorporated after Measure A was approved in November 1988. Summary of Observations and Findings 1 City of Riverside has provided an explanation regarding the intended use for the accumulation of fund balance in excess of three years of revenues. Approximately $13 million has been spent or encumbered since 6/30/04 and $12. 5 million relates to projects in the active planning phase. 0 2 City of Temecula has been requested to respond to finding regarding transfer of Measure A funds of $750,000 to a city fund to finance a project not included in the City's 5 Year Measure A Capital Improvement Plan. 3 Cathedral City had a finding regarding Measure A expenditures of $225 which were not included in the City's 5 Year Measure A Capital Improvement Plan. Amounts were not significant and correction was not required by RCTC; however, City has indicated that an adjustment has been made to correct this error . 4 City of Norco has a large accumulation of fund balance in excess of three years of revenues. Approximately $1.4 million relates to unexpended bond proceeds from August 1997 Measure A issuance, which cash amounts are held in trust for Norco. A significant reimbursement was made in July 2004 which reduced the cash held in trust to approximately $423,000. Measure A LSR Comments 11 2/22/2005 • • • Riverside County Transportation Commission Presentation to the Audit Committee February 22, 2005 Presented By: Stephen L Larson, Senior Partner Distributing funding to recipients within approved policy Maintaining appropriate mechanisms to monitor recipients' usage of funding Developing necessary tracking systems to monitor results Reviewing recipient submissions :• Identifying recipients to be audited 51 C.sl. •:• Financial and compliance audits of Transportation Funds - Measure A - Local Streets and Roads -Specialized Transportation - TDA Articles 3 and 4 Review of compliance with provisions of Measure A and TDA - Measure A Ordinance 88-1 - TDA Sections 6666 and 6667 - RCTC policies relating to such programs Audit of SunLine Transit Agency's financial statements • :• Obtain reasonable assurance that the recipients' financial statements are in compliance with specific funding program requirements Examine, on a test basis, evidence supporting amounts and disclosures :• Assess accounting principles used, estimates made, and evaluate the overall financial statement presentation made by recipients Review recipients' internal control policies and procedures Express an opinion on the recipients' program financial statements Ct 6 Phase I - Planning Meeting with RCTC Staff • Identification of unique accounting and compliance requirements f Identification of recipients to be audited Development of the audit work plan • Create compliance report • Review drafts with recipient's management ▪ Finalize reports 52 Phase II - Validation For each recipient: Validate specific account balances related to funding programs under review Evaluate recipient estimates + Analyze internal control procedures over funds received from programs under review :• Validate compliance - Measure A - TDA Artides 3 and 4 Total Program (gas in 551) Total Dollars % of Total Recipients Number Distributed Dollars Audited Not audited Total 55 $ 58,155 58.7% 12 40,963 41.3% 67 $ 99,118 100.0% 12 • • • • • Riverside County Transportation Commission Riverside Transit Agency Coachella Valley Association of Governments Riverside County Auditor -Controller Canyon Lakes SCAG Reports Issued: Indian Wells Exceed (Valley Resource Cntr) Calimesa Coachella Care -a -van Transit Systems Murrieta Desert Hot Springs Palm Springs Rancho Mirage Cathedral City Temecula Corona Transportation Palm Desert [cats_>. Blythe San Jacinto Riverside City (Transportation & Transit) Banning (Transportation & Transit) Diversified Paratransit, Inc. Friends of Moreno Valley Hemet Indio Lake Elsinore Norco Blindness Support Partnership to Preserve Independent Living SunLine Transit Perris 15 53 Recipients Assigned Banning Transportation & Transit Beaumont Transportation & Transit Blindness Support Blythe Calimesa CareA-Van Transit Systems Cathedral City Ccuchella Corona Transportation & Transit Ilsert Hot Springs Diversified Para transit, Inc. Exceed (Valley Resource Gtr) Friends of Moreno Valley Hemet Indian Wells Indio Inland AB]' U. lake Elsinore Moreno Valley Murrisita Norco Paler Desert Palm Springs Palo Verde Valley Transit Agency Partnership to Preserve Independent Living Perris Rancho Mirage Riverside City Transportation & Transit Riverside County San Jacinto SunUne Transit Tenxrula Volunteer Center of Riverside 14 Volunteer Center of Riverside - several reschedules Beaumont - Transportation and Transit - several reschedules Riverside County • Measure A 1. Costs expended for projects not approved in the FY 04-08 Plan Temecula 2. Allocation of costs not in compliance with RCTC policy Cathedral City 3. Incorrect supporting documents used to support transactions 54 • AGENDA ITEM 13 • • • RIVERSIDE COUNTY TRANSPORTA TION COMMISSION DATE: February 28, 2005 TO: Budget and Implementation Committee FROM: John Standiford, Director of Public Information THROUGH: Eric Haley, Executive Director SUBJECT: State and Federal Legislative Update STAFF RECOMMENDATION: This item is for the Committee to: 1) Adopt the following bill positions and associated policy positions: SUPPORT — ACA 9 (Bogh) & ACA 11 (Oropeza); 2) Receive and file the state and federal legislative update; and 3) Forward to the Commission for final action. BACKGROUND INFORMATION: • State Update Proposition 42 Bills Introduced • In January, the Commission approved a SUPPORT position on ACA 4 (Plescia), a bill that would eliminate the current provision in Proposition 42 that allows for a suspension with a 2/3rds vote of the Legislature. Two additional bills regarding the suspension loophole in Proposition 42 have recently been introduced including ACA 9 by local Assemblyman Russ Bogh and ACA 11 authored by Assembly Transportation Chair Jenny Oropeza. The Bogh bill would raise the threshold for a suspension and would require a 4/5ths vote of the Legislature instead of the current 2/3rds. The proposal is similar to a bill he introduced last year that did not move out of Committee. The Oropeza bill would still allow for a loan of the money but would require repayment of the loan in the same year that is made with interest. Both bills were introduced only a few weeks ago and have yet to be heard by a policy committee. By law they must be in print for 30 days before legislative consideration. The issue of Proposition 42 is likely to be debated in the Legislature up until and even after the completion of the state's budget. Additional bills might even be introduced on the subject prior to the issue being resolved and the 55 Governor has suggested that he will support changes beginning in Fiscal Year 2007. RCTC has been consistent in its support for the full implementation of Proposition 42 as was intended by the voters. While the three bills regarding Proposition 42 address the issue in a different manner, staff believes that the Commission should support all legislative efforts that attempt to protect Proposition 42. The final legislative vehicle to deal with the matter will have to be hammered out in the Capitol and it will be helpful to have RCTC's constant and consistent support clearly recognized. Federal Update A delegation of elected officials and staff from the six -county SCAG region visited Washington, D.C. to lobby for federal funding of transportation improvements in Southern California. The trip was coordinated by SCAG and included RCTC Commissioner Ron Roberts. Meetings were held with a number of Congressional representatives including Jerry Lewis, Ken Calvert and Mary Bono. Additionally, the delegation met with the staffs of Senators Feinstein and Boxer and staff from the Federal Department of Transportation and the House Transportation and Public Works Committee. After a couple of years delay, there appears to be added momentum for the passage of a multi -year federal transportation act. The House has agreed to the President's price ceiling of $284.3 billion over six years and expects to have a marked up bill with projects approved by early March. The bill number is H.R. 3. A number of Senators are continuing to press for a higher price tag similar to the $318 billion bill approved by the Senate last year. The hope among many is that the House will approve a bill in April and the Senate will pass their version shortly thereafter. There will be differences in the two bills which will require a conference committee in May and if everything proceeds as it should, a final version of the bill could become law by the end of May, which is when the current -short term extension of the federal transportation act expires. In terms of policy, a clear message that is gaining momentum in Congress is the need to address the impact of goods movement on transportation system of Southern California. Congressional representatives from throughout the area now realize that the combined ports of Long Beach and Los Angeles actually come together to form a Port of Southern California. The entire region, and especially Riverside and San Bernardino Counties, are affected by the reality that 40 percent of goods imported into the United States travel through the area. As a result, the House is supporting major investments in what is being termed as "Projects of National Significance." A major component of that effort should include funding • • • 56 • for the Alameda Corridor East. The legislation would define the Alameda Corridor East to include the length of the two major rail lines that travel through Riverside County. Another policy issue that is gaining momentum is the issue of toll roads. H.R. 3 would lift federal restrictions on the tolling of Interstate Highways. Concepts such as High Occupancy Toll (HOT) Lanes and public -private partnerships to build transportation projects would be encouraged. This matches the direction that the state seems to be favoring with the Governor's rumored GO California program. While no official details regarding Go California have been released, newspaper stories have indicated that it will favor toll roads to finance added capacity and partnerships with the private sector. Staff will continue to update the Commission as additional details on H.R. 3 and Go California are released. 57