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HomeMy Public PortalAbout02 February 22, 1999 Budget & Implementation• • TIME: DATE: LOCATION: IVERSIDE COUNTY TRANSPORTATION COMMISSION BUDGET AND IMPLEMENTATION COMMITTEE AGENDA 2:30 p.m. Monday, February 22, 1999 Riverside County Transportation Commission Office 3560 University Avenue, Conference Room A Riverside, CA 92501 City of La Quinta City Hall (Video Conference Location) Session Room 78-495 Calle Tampico, La Quinta 92253 Budget and Implementation Committee Members Jim Venable / County of Riverside, Chairman Ron Roberts / City of Temecula, Vice Chair John Hunt / City of Banning Gregory S. Pettis / City of Cathedral City Juan DeLara / City of Coachella Andrea Puga / City of Corona John Pena / City of La Quinta Kevin Pape / City of Lake Elsinore Frank West / City of Moreno Valley Don Yokaitis / City of Rancho Mirage Alex Clifford / City of Riverside Tom Mullen / County of Riverside John Tavaglione / County of Riverside Jim Smedley / City of San Jacinto Eric Haley, Executive Director Dean Martin, Chief Financial Officer BUDGET AND IMPLEMENTATION COMMITTEE 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, SB 821, SAFE/Freeway Service Patrol and Other Areas as may be prescribed by the Commission) Comments are welcomed by the Committee. If you wish to provide comments to the Commission, please complete and submit a Testimony Card to the Clerk of the Committee. RIVERSIDE COUNTY TRANSPORTA TION COMMISSION BUDGET AND IMPLEMENTATION COMMITTEE http://www.rctc.org 3560 UNIVERSITY AVENUE RIVERSIDE, CA 92501 CONFERENCE ROOM A MONDAY, FEBRUARY 22, 1999 2:30 P.M. AGENDA* *Actions may be taken on any item listed on the agenda 1. CALL TO ORDER 2. PUBLIC COMMENTS 3. APPROVAL OF MINUTES (JANUARY 25, 1999) 4. High Speed Rail Legislation (15 Min) This item is a placeholder pending further development of a staff recommendation. Staff will present further information at the Committee meeting. 5. Rail Station Security (10 Min) That the Commission contract directly for security services at its four rail station sites. 6. State and Federal Legislative Update (20 Min) It is recommended the Commission adopt the bill positions, and receive and file the State and Legislative Updates. 7. Request for Additional Construction Contingency for Construction Contract No. RO-9847 for Construction and Sound Walls on SR 91 Between Van Buren Boulevard and Mary Street in the City of Riverside (10 Min) That the Commission authorize the increase of the project construction contingency by $40,000 for Construction Contract No. RO-9847 from $113,514 to $153,514. The new not to exceed value of the contract will be 82,640.000. 8. Quarterly CaII Box Update (5 Min) That the Commission receive and file. 9. Quarterly Financial Reports (5 Min) Attached are Combining Statements of Revenues and Expenditures and Changes in Fund Balances (Unaudited) and the Highway and Rail Projects quarterly budget report for the Quarter ending December 31, 1998. 000001 Budget and Implementation Committee Agenda February 22,1999 Page 2 10. Revised Budget - Fiscal Year 1998-1999 (10 Min) Attached is a spreadsheet showing changes to the budget by major line item. 11. Report on Projection of Measure A Earned Sales Tax Revenues (15 Min) This is an agreed -upon procedure, as enumerated in the attached report, with respect to the projection of Measure A Earned Sales Tax Revenues for the Commission for the years ending June 30, 1998 through 2009, as presented in Exhibit A. 12. ADJOURNMENT The next meeting is scheduled to be held at 2:30 p.m. on Monday, March 22, 1999 at the RCTC offices. 000002 • MINUTES • • RIVERSIDE COUNTY TRANSPORTATION COMMISSION BUDGET & IMPLEMENTATION COMMITTEE JANUARY 25, 1999 MINUTES 1. CALL TO ORDER. The meeting of the Budget and Implementation Committee was called to order at 3:11 p.m. by Dean Martin, Chief Financial Officer, at the offices of the Riverside County Transportation Commission, 3560 University Avenue, Riverside. Commissioners Present: Alex Clifford Juan De Lara John Hunt Tom Mullen Kevin Pape Gregory S. Pettis Andrea Puga Ron Roberts Jim Smedley Jim Venable Frank West Don Yokaitis 2. ELECTION OF CHAIR AND VICE -CHAIR. Commissioners Absent: John Tavaglione John Pena M/S/C (Mullen/Roberts) to elect Commissioner Jim Venable as Chairman of the Budget and Implementation Committee. M/S/C (Mullen/Smedley) to elect Commissioner Ron Roberts as Vice Chairman of the Budget and Implementation Committee. 3. PUBLIC COMMENTS. There were no comments from the public. 4. 1998 FISCAL AUDIT REPORTS. The audit results for fiscal year ending June 30, 1998 were presented by Sally Anderson, Cynthia Morningstar, Julia Cox and Theresia Trevino from the firm Ernst & Young LLP. The following points were made: + The Commission was issued an unqualified opinion and the auditors found no areas requiring significant judgement. + The City of Blythe, which previously showed a cumulative deficiency, was amended so that as of June 30, 1998 they are in compliance. This issue has been resolved. + The cities of Riverside and Moreno Valley are currently amending their five-year capital plan to add projects previously not included in the plan and will be submitted to the Commission. + A going concern was issued for the City of Beaumont and will also be issued for the City of Perris. Staff was instructed to provide quarterly reports on any entities with ongoing concern opinions 000003 ♦ Alan Kapanicas, Beaumont City Manager, explained that the deficiency shown in the report is due to a loan to the Redevelopment Agency. No Measure "A" funds were used to supplant general funds. The City also intends to submit an additional $1,000,000 in eligible expenditures as an amendment to their five-year Capital Plan. ♦ Commissioner Kevin Pape, City of Lake Elsinore, reported that the financial burden for their city has been relieved through the sale of the stadium to a private firm. M/S/C (Mullen/Smedley) that the Commission receive and file the results of the audit for the fiscal year ending June 30, 1998. 5. FORMATION OF AUDIT COMMITTEE. M/S/C (Hunt/Puga) to establish an Audit Subcommittee of the Budget and Implementation Committee consisting of Commissioners Clifford, Hunt, Smedley, Tavaglione and Pettis with Commissioner Hunt as the Chairman of the Subcommittee. 6. FRIENDS OF JEFFERSON HOUSE M/S/C (Mullen/ Yokaitis) that the Commission approve the requested increase to the Friends of Jefferson House maintenance contract. 7. SELECTION OF INVESTMENT ADVISOR M/S/C (Puga/DeLara) that the Commission select Public Financial Management, Inc. as the Investment Advisor. 8. INVESTMENT REPORT FOR QUARTER ENDING DECEMBER 31, 1998 M/S/C (Hunt/Mullen) that the Commission receive and file the investment report for the quarter ending December 31, 1998. 9. MONTHLY COST AND SCHEDULE REPORTS. M/S/C (Hunt/Puga) that the Commission receive and file the Monthly Cost and Schedule Reports for the period ending December 31, 1998. 10. PROGRESS REPORT ON INTERNAL REVIEW M/S/C (Smedley/De Lara) that the Commission receive and file the Progress Report reviewing internal operations. 11. AWARD OF CONSTRUCTION CONTRACT NO. RO-9932 TO CONSTRUCT A PEDESTRIAN OVERCROSSING Paul Blackwelder reported on problems being experienced by staff regarding to the bids and there was not a recommendation at this time. M/S/C (Puga/Pape) that staff bring a recommendation to the Commission at the February 10th meeting on the award of Contract No. RO-9932, for Construction of a Pedestrian Overcrossing Structure and Security Enhancements at the existing La Sierra and West Corona Commuter Rail Stations. 00000 12. LOCAL SALES TAX MEASURE RENEWAL OPTIONS • • M/S/C (Mullen/Puga) that the Commission support pursuit of a reduction in current vote requirement for passage of local transportation sales tax measures from two-thirds to 50%. Nays: Pape, Smedley 13. LOCAL TRANSPORTATION FUND (LTF) PROJECTION M/S/C (Clifford/Hunt) that the Commission approve the apportionment of Local Transportation Funds for Coachella Valley, Palo Verde Valley, and Western Riverside County. Nay: Yokaitis 14. DRAFT WORK PLAN FOR THE STRATEGIC PLAN M/S/C (Hunt/ Clifford) that the Commission adopt the draft work plan for completion of the comprehensive and countywide strategic plan. 15. ADJOURNMENT There being no further business for consideration by the Budget and Implementation Committee, the meeting was adjourned at 4:55 p.m. Respectfully submitted, Naty Cope Clerk of t 000005 • AGENDA ITEM 4 • 0 • • • RIVERSIDE COUNTY TRANSPORTA TION COMMISSION DATE: February 22, 1999 TO: Budget & Implementation Committee FROM: David Shepherd, Director of Intergovernmental & Legislative Affairs THROUGH: Eric Haley, Executive Director SUBJECT: Possible High Speed Rail Legislation This item is a placeholder pending further development of a staff recommendation. The Southern California Association of Governments may be sponsoring legislation related to high speed rail planning. Staff is in the process of researching this issue and will present more information at the Committee meeting. STAFF RECOMMENDATION: That the Committee discuss and possibly consider action. 000006 • AGENDA ITEM 5 • • • • RIVERSIDE COUNTY TRANSPORTA TION COMMISSION DATE: February 22, 1999 TO: Budget & Implementation Committee FROM: Claudia Chase, Property Agent Susan Cornelison, Rail Program Manager THROUGH: Eric Haley, Executive Director SUBJECT: Rail Station Security This item is a placeholder pending further development of staff's recommendation. Security services at RCTC's four rail stations are currently provided as an add-on to Metrolink's contract for security guards at the system's outlying lay -over sites and central maintenance facility (CMF). A single vendor contracts to guard the CMF in Los Angeles and layover points at Moorpark, Lancaster, San Bernardino and Riverside. Owners of a few stations in the system, including RCTC, have elected to have Metrolink contract for additional station guards on an incremental basis. RCTC reimburses Metrolink for the direct hourly costs of station security. Though a certain economy of scale is realized, companies which bid on such a contract tend to be large providers headquartered far from our sites. Consequently, RCTC staff has not had the ability to interact as closely as we would have liked with the guard company. Also, some of RCTC's unique needs were outside the parameters of the existing contract. Since the Metrolink security contract is being readied for re -bid, RCTC staff and board members had proposed that Metrolink consider multiple, regional contracts in procuring security services, thereby allowing local firms to bid on a smaller piece of the whole. Metrolink's staff analysis indicated that such a solution would not be cost effective on a system -wide basis, and instead proposed an alternative which was sanctioned by the Metrolink Board of Directors on February 12. The proposed alternative is to have RCTC directly contract for not only its own station security services, but also for the equipment lay -over guards at downtown Riverside. This would allow for a locally- managed contract, serving all RCTC station sites, and designed to meet certain unique requirements (such as electronic surveillance). Such a contract would also avoid the potential conflicts of having two security firms providing service at the same site (Riverside -Downtown station and lay- over). RCTC would invoice Metrolink for the direct costs associated with guarding Metrolink equipment. 000007 Financial Implications for FY 1999/00: Other than the staff time required for a separate procurement process, no additional costs are anticipated in the current fiscal year. Station security is already an integral part of RCTC's rail operating budget, and next year's budget will probably reflect additional costs for a higher level of service. Staff will be working before the committee meeting to better define RCTC's projected costs. STAFF RECOMMENDATION: That the Committee recommend the Commission contract directly for security guard services at its four rail station sites and authorize staff to develop the necessary procurement documents including an appropriate scope of work. • • • 000008. AGENDA ITEM 6 RIVERSIDE COUNTY TRANSPORTA TION COMMISSION DATE: February 22, 1999 TO: Budget and Implementation Committee FROM: David W. Shepherd, Director of Intergovernmental and Legislative Affairs THROUGH: Eric Haley, Executive Director SUBJECT: State and Federal Legislative Update STATE LEGISLATIVE UPDATE The 1999/2000 State Legislative Session commenced January 4th, 1999. San Bernardino County has two new representatives in the Assembly: John Longville, and Nell Soto. Both were appointed to the Assembly Transportation Committee. Former Assemblyman Joe Baca was elected to the Senate and appointed to the prestigious Senate Rules Committee. In Riverside County, Assemblyman Rod Pacheco was elected to the leadership post of Assembly Minority Leader. While policy committee meetings have not yet begun, legislative proposals have been submitted to Legislative Counsel and some bills have already been introduced. Policy committee will begin reviewing legislation in March. Staff has analyzed and recommends the following bill positions: AB 38 (Carl Washington, D - Los Angeles) - Extends South Coast Air Quality Management District Authority to collect $ 1 vehicle license fee until 2004. Staff recommends: SUPPORT. The staff analysis is attached. AB 44 (Tom McClintock, R -Simi Valley) - Would require Caltrans and local authorities to re -designate all existing high occupancy vehicle lanes as mixed flow. Staff recommends: OPPOSE. The staff analysis is attached. AB 74 (Virginia Strom -Martin, D -Eureka) - Would permit a private freight rail operation to compete for State Intercity Rail funding. Staff recommends: OPPOSE. The staff analysis is attached. AB 102 (Scot Wildman, D -Los Angeles, and Wally Hertzberg, D -Los Angeles) - Would fund the 1989 Priority Soundwall Retrofit list of projects off -the -top of the State Highway Account. Staff recommends: SEEK AMENDMENT. The staff analysis is attached. 0000ua SB 14 (Richard Rainey, R -Walnut Creek) - Would require extensive study prior to construction of future high occupancy vehicle lanes. Staff recommends: OPPOSE UNLESS AMENDED. The staff analysis is attached. SB 17 (Liz Figueroa, D -Fremont) - Would permit employers to receive a tax credit for purchasing transit passes for their employers. Staff recommends: SUPPORT. The staff analysis is attached. SB 63 (Hilda Solis, D-EI Monte) - Would reduce the minimum occupancy for the El Monte Busway from 3 plus to 2 plus. Staff recommends: OPPOSE. The staff analysis is attached. SB 98 (Richard Alarcon, D -Los Angeles) - Extends South Coast Air Quality Management District Authority to collect $1 vehicle license fee until 2004. Staff recommends: SUPPORT. The staff analysis is attached. SB 117 (Kevin Murray, D -Los Angeles) - Would make permanent the Environmental Enhancement and Mitigation Fund. Staff recommends: SUPPORT. The staff analysis is attached. SB 10 (Rainey) which would allocate $300 million from the State Highway Account (SHA) for local street and road rehabilitation is not being forwarded with a staff recommendation. In a letter to the California Transportation Commission (CTC), the County Supervisors Association of California (CSAC) stated that given the effort of the CTC and others to resolve the need for local road rehabilitation funding, it is no longer requesting the $300 million allocation in the Rainey bill. Should the current situation change, staff will forward a recommendation. Finally, Assemblyman Torlakson has agreed to author legislation affecting a number of transportation project delivery issues, including the concept of a loan program to expedite reducing the SHA cash balance. Legislative Counsel is still drafting the bill language. Once introduced, staff will forward a recommendation. Federal Update In Washington, D.C. no major committee or legislative activity, with the exception of House committee membership announcements (attached) and the release of the President's budget, has occurred yet. Looking forward, the re -authorization of the Airport Improvement Program promises to be a contentious issue; areas of disagreement include the length of the re -authorization and passenger facility charges. The President's Fiscal Year (FU) 2000 budget includes $6.1 billion for transit - $291 million more than the "guarantee" outlined it the Transportation Equity Act of the 21°` Century (TEA21) and $2.2 billion to support local projects designed to ease traffic congestion. 000010 • • Summary The State Legislature has begun introducing legislation and policy committees will soon be acting on proposals. Aside from House committee assignments and the release of the President's FY 2000 Budget, Washington legislative activity has been limited. Financial Assessment Project Cost Source of Funds Included in Fiscal Year Budget Year Included in Program Budget Year Programmed Approved Allocation Year of Allocation Budget Adjustment Required Financial Impact Not Applicable Various gains or losses depending on legislative outcomes STAFF RECOMMENDATION: That the Budget and Implementation Committee adopt the recommended bill positions, and receive and file the State and Federal Legislative Updates. 000011. • • • Date of Analysis: January 28, 1999 Bill Number/Author: AB 38 (Carl Washington, D -Los Angeles) Introduced December 7, 1998 Subject: Vehicle License Fees for Air Pollution Status: Assigned To The Assembly Transportation Committee — No Hearing Date Yet. Summary: Existing law provides the South Coast Air Quality Management District (SCAQMD) the authority to impose a $1 fee on vehicle registrations. The revenues generated from the fee support a program, administered by the SCAQMD's Technical Advancement Office (TAO), which encourages participation in projects to increase the proliferation and use of clean -burning fuels. In August 1999, the SCAQMD's authority to impose this fee will expire. AB 38, an urgency measure that is identical to SB 98 (Alarcon), proposes to extend the SCAQMD's exiting authority to impose the $1 fee until August 1, 2004. Staff Comments: The TAO primarily funds projects related to assisting, through research or purchases, heavy-duty vehicle fleet conversions from diesel fueled to clean fueled engines. Many of the fleets benefiting from the TAO work reside in Riverside or San Bernardino County. The work of the TAO and the Mobile Source Reduction Review Committee (MSRC), of which both the Riverside County Transportation Commission and San Bernardino Associated Governments are members, frequently lead to healthy partnerships in their efforts to maximize the use of vehicle license fees intended to facilitate cleaner air. Staff Recommendation: Seeing the past and potential future receipt of funds for Riverside and San Bernardino Counties, staff recommends: SUPPORT. 000012 • • • Date of Analysis: February 4, 1999 Bill Number/Author: AB 44 (Tom McClintock, R -Simi Valley) Introduced December 7, 1998 Subject: High Occupancy Vehicle Lanes Status: Assigned To The Assembly Transportation Committee — No Hearing Date Yet. Summary: Under existing law, prior to establishing a high occupancy vehicle (HOV) lane, both the Department of Transportation (Caltrans) and the local agency in whose jurisdiction the highway rests, must make competent engineering estimates of the effect of the lanes on safety, and highway capacity. AB 44 would require Caltrans and local authorities, with respect to highways under their respective jurisdictions, to re -designate all existing HOV lanes as mixed -flow lanes and may not construct or designate any new HOV lanes unless all of the following requirements have been met: (1) Caltrans or local authority has conducted the traffic model study (described below) and analysis required by AB 44. (2) Caltrans or local authority has obtained the certification of the study and analysis. (3) The result of the analysis conducted is that establishing an HOV lane is the most efficient alternative in accordance with the cost -benefit estimates. (4) Six months have elapsed from the date the analysis of the study was submitted to the Governor and the Legislature. AB 44 would add to the current requirement for competent engineering estimates the requirement for a traffic model study of not less than six months' duration that compares the alternatives of establishing HOV lanes, establishing a high -occupancy toll lane (HOT lane alternative), establishing a mixed -flow lane (mixed -flow lane alternative), or not establishing additional lanes (no -build alternative). Per AB 44, the traffic model study required shall cover an analysis segment consisting of at least the entire affected freeway section, or the corridor of which that freeway is a part, and shall include, but need not be limited to, all of the following: (1) A modal choice sub -model showing the fraction of travelers that will choose a 00.0013 HOV mode; such as car pools, vans, or buses, instead of driving alone, dependent upon, but not limited to, the number of passengers required to qualify a vehicle as a HOV and the HOV lane timesavings. (2) Distribution of the total freeway volume between the HOV lane and the mixed -flow lanes, dependent upon modal choice fraction. (3) A congestion sub -model showing travel speeds and time, dependent on the vehicular volume in the various lanes. (4) Calibration to confirm that the model yields results are consistent with observed pre -build traffic volumes, speeds, and number of car pools. The observed total pre -build person trips (over all modes) within the analysis segment, which shall be referred to as the "person -trips base," shall be held constant and used as the basis for subsequent benefit calculations. (5) Iterating the model as necessary to ensure that the travel times are consistent with those used in estimating the fraction choosing HOV modes. (6) Total travel time, emissions, and fuel consumption shall be computed by summing over the same "person -trips base" for each build alternative, and expressed as change relative to the no -build alternative. (7) Emissions estimates shall include carbon monoxide, carbon dioxide, hydrocarbons, and nitrogen oxides. Emissions and fuel consumption shall be computed using methods of the State Air Resources Board and shall be dependent upon vehicle miles traveled, vehicle trips, and average speeds in the various lanes. (8) Capital costs, annual operating costs, and annualized capital and operating cost, shall be estimated for each alternative, incremental to the no -build alternative. Costs unusual to each alternative, including any special lane width, buffer lanes, additional shoulders, enforcement zones, merging regions, and enforcement operation, shall be separately identified and estimated. (9) Cost -benefit ratios shall be estimated for each alternative and may be expressed as dollars of total annualized cost per unit of benefit for each of the various benefit measures. (10) The study shall provide data sufficient to determine whether the use of high -occupancy vehicle lanes improve air quality to the extent included in the state implementation plan filed under the federal Clean Air Act. (1 1) The study shall compare the number of traffic violations, accidents, injuries, and fatalities that occur on portions of highways that have HOV lanes to portions of highways that do not have those lanes. • 000014 • • • AB 44 would also require Caltrans or local authorities to analyze the results of the traffic model study to determine the most efficient choice among the HOV lane alternative, the HOT lane alternative, the mixed -flow lane alternative, and the no - build alternative in terms of total person -delay, emissions, and cost. Subsequently, the performance results and comparative analysis conducted for a HOV lane project would be required to be distributed as follows: (1) As part of any oral presentations at hearings and part of any visual presentations in handouts and workshops for the project. (2) In any literature or visual displays prepared for the public or for public officials in relation to the project. (3) In any environmental impact report prepared for the project. Finally, AB 44 would require Caltrans or the local authority to submit a copy of the documentation required to the Governor and the Legislature for review within six months of completion. Staff Comments: Both the Riverside County Transportation Commission (RCTC) and the San Bernardino Associated Governments (SANBAG) have made and have plans for substantial investment in HOV lane infrastructure. Additionally, both agencies continue to invest in an extensive outreach program designed to promote ridesharing (via HOV lanes) as an alternative to driving alone. Many of the HOV lane criticisms rely on anecdotal information, such as visual representations showing free -flow lanes gridlocked and HOV lanes essentially empty. Often forgotten when confronted with these visual representations is the purpose of freeways, and transportation infrastructure in general, to move people, not vehicles, from their point of origin to their destinations. With that purpose in mind, consideration of the following data supports the continuation of HOV lanes in their present status and future construction of such lanes: Each freeway lane capacity, at posted speeds approximates 2,200 vehicles per hour with spacings of 141 feet. Southern California's average vehicle occupancy (AVO) is almost 1.1, thus, a 2+ HOV lane will have twice the person -throughput capacity of a mixed flow lane if both are operating at maximum vehicle capacity. The strongest contrast becomes most clear under congested flow conditions. Stop -and -go traffic, averaging 10 miles per hour (MPH) reduces the per -lane capacity to 1,173 vehicles per hours and spacing to 30 feet. With Southern California's AVO of 1.1, the person throughput of such a mixed flow lane is only 1,291 vehicles per hour. 000015 However, a 2+ HOV lane operating at 65 MPH, equals or surpasses the person throughput of the congested mixed flow lane with spacings as great as 570 feet. A 3+ HOV lane could equal this throughput with spacings of 915 feet, or less than 6 vehicles per lane -mile. Operating at maximum vehicle capacity, a 3+ HOV lane would have a throughput of 7,7000 vehicles per hour or six times more the person throughput capacity of the mixed flow lane. Clearly, HOV lanes offer both higher levels of person throughput and personal safety (due to greater spacings) that is easily quantifiable. In response to a request opinion of the impacts of AB 44 from Caltrans Director Medina, the U.S. Department of Transportation Federal Highway Administration (FHWA) has stated that both Interstate Maintenance Program and Congestion Mitigation and Air Quality Improvement Program funds may not "be provided for a project which will result in the construction of new capacity available to single occupant vehicles unless the project consists of a high occupancy vehicle facility available to single occupant vehicles only at other than peak travel times." Further, the FHWA stated that "the State (California) may not unilaterally decide to end the operation of HOV lanes, even by paying back the funds it received." Therefore, many issues remain unresolved before all existing HOV lanes can or should be redesignated as mixed flow lanes — which AB 44 intends to implement. Given the negative mobility, safety, financial (Federal funds) impacts that would result, converting existing HOV lanes to mixed flow is not justifiable. Staff Recommendation: OPPOSE. • UOOO16 • • Date of Analysis: February 4, 1999 Bill Number/Author: AB 74 (Virginia Strom -Martin, D -Eureka) Introduced December 7, 1998 Subject: State Intercity Rail Funding Eligibility Status: Assigned To The Assembly Transportation Committee — No Hearing Date Yet. Summary: Existing law specifies what types of projects are eligible for State and Federal transportation funding. AB 74 would render a specific rail freight operation (North Coast Railroad Authority) eligible for State Intercity Rail funding. This bill is identical to AB 96 (1998, Strom -Martin) which at the request of the Riverside County Transportation Commission, the San Bernardino Associated Governments, and a number of other interested parties, was vetoed by then Governor Wilson. Staff Comments: Currently, State Intercity Rail funds are allocated through the State Transportation Improvement Program (STIP) process by the California Transportation Commission (CTC). Passenger commuter rail systems such as Metrolink rely heavily on these funds to support their operations. Permitting freight operations to apply for these funds will unnecessarily cause taxpaying rail passengers to compete with non -passenger service for funding to support their daily commute. Metrolink service to both Riverside and San Bernardino County continue to experience ridership increases. With these increases are additional service need which translate to the need for additional funding. Having to compete with a private freight operation located in Northern California is not in the best interest of the Riverside and San Bernardino County residents. Further, there a possibility that opening State Intercity Rail funding for private freight operations in Northern California might be seen as an opportunity for the major railroad freight operators in Riverside and San Bernardino County Burlington Northern Santa Fe and Union Pacific and other short line freight carriers within the state to also begin seeking state capital assistance. Staff Recommendation: OPPOSE. 000017 Date of Analysis: January 28, 1999 • • Bill Number/Author: Subject: Status: Summary: AB 102 (Scott Wildman, D -Los Angeles and Wally Hertzberg, D — Los Angeles) Introduced December 21, 1998 Funding For Soundwall Retrofit Projects No Committee Assignment Yet. In 1989, the Legislature put together the Transportation Blueprint for the 21st Century, which was funded by a nine cents per gallon tax increase authorized by the passage of Proposition 111. The Blueprint authorized $150 million for constructing a list of 219 soundwalls. Due to cost escalation resulting from delays in project delivery, an estimated $200 million of work remains for the 1989 priority list; $134 million of it in Los Angeles County. None of the remaining soundwalls on the 1989 list are in Riverside or San Bernardino County. AB 102 proposes to fund the remaining soundwall project "off -the -top" of the State Highway Account (SHA). In other words, should AB 102 pass in its current form, funding the remaining soundwall projects must occur prior to programming SHA funds for any other program/project. Impacts on Riverside and San Bernardino County: Background Last year, AB 1686 (Wildman) attempted to resolve this issue.. Both RCTC and SANBAG agreed to a compromise that proposed funding with the projects 50% off -the - top and a 50% contribution from the regional choice funds. However, late in the Legislatative Session, the approach of AB 1686 was reconfigured to split the funding for the soundwalls with a 50% contribution from the regional shares of those counties with projects and 50% from the Interregional Transportation Improvement Program (subject to the North/South split). Both the Riverside County Transportation Commission and the San Bernardino Associated Governments successfully advocated for the Governor's veto of AB 1686. The veto request was based upon the policy that, much like the agreement for funding the seismic retrofit of the State's bridges, the seismic retrofit of soundwalls on the State's highways should be a responsibility shared equally by all parts of the State that includes a local contribution. In it's current form, AB 102 represents a definite cost to both Riverside and San Bernardino County. The costs to each county are $673,000 and $9.9 million respectively. Were the projects to be funded under the scenario to which RCTC and SANBAG agreed 000013 last year (50% off -top, 50% regional share), the costs to each county would be $337,000 and $4.9 million respectively. Given the significant difference in costs to both Riverside and San Bernardino County, staff recommends seeking to amend AB 102 to require that the soundwall projects are funded in a manner that provides the least costly impact to both Riverside and San Bernardino County. Stab Recommendation: SEEK AMENDMENT 000019 Date of Analysis: February 4, 1999 Bill Number/Author: SB 14 (Richard Rainey, R -Walnut Creek) Introduced December 7, 1998 Subject: High Occupancy Vehicle Lanes Status: Assigned To The Senate Transportation Committee — No Hearing Date Yet. Summary: Under existing law, prior to establishing a high occupancy vehicle (HOV) lane, both the Caltrans of Transportation (Caltrans) and the local agency in whose jurisdiction the highway rests, must make competent engineering estimates of the effect of the lanes on safety, and highway capacity. If passed into law, SB 14 would require Caltrans to complete a study to create a set of criteria for measuring the effectiveness of state highway lanes proposed to be designated or constructed as HOV lanes. The results of the study shall include, but not be limited to, a projection for the estimated level of use of the HOV lanes during peak traffic hours. SB 14 would prevent Caltrans from designating or constructing any new HOV lanes until after completing the required study. Further, the criteria developed under the study shall be applied to any HOV lane that is designated or constructed on or after SB 14 becomes law, as follows: (1) On or before 18 months have elapsed from the date that the lane became operational, Caltrans shall review the use statistics and patterns to determine whether the lane is being used in a manner that is consistent with the criteria developed by the Caltrans. (2) If the result of the review is that the lane is not being used at or above the estimated level of use, Caltrans, in consultation with the local transportation authority, shall propose a strategy to increase the level of use to meet that estimate. (3) On or before 12 months have elapsed from the date implementation, Caltrans shall review the use statistics (4) If the result of the review conducted is that the lane above the estimated level of use, Caltrans immediately convert the lane to mixed -flow use. of the proposed strategy's and patterns for the lane. is not being used at or shall initiate a process to Lastly, SB 14 would require Caltrans to review the usage patterns of HOV lanes that were made operational before January 1, 1999, to determine whether traffic congestion relief has been achieved as a direct result of the operation of those lanes. If the result of 000020 the review is that traffic congestion relief has not been achieved, Caltrans shall propose strategies to achieve that relief. The strategies proposed by Caltrans may include converting any HOV lane to a mixed -flow lane, if Caltrans deems that strategy to be appropriate for that lane. Staff Comments: Both the Riverside County Transportation Commission (RCTC) and the San Bernardino Associated Governments (SANBAG) have made and have plans for substantial investment in HOV lane infrastructure. Additionally, both agencies continue to invest in an extensive outreach program designed to promote ridesharing (via HOV lanes) as an alternative to driving alone. Many of the HOV lane criticisms rely on anecdotal information, such as visual representations showing free -flow lanes gridlocked and HOV lanes essentially empty. Often forgotten when confronted with these visual representations is the purpose of freeways, and transportation infrastructure in general, to move people, not vehicles, from their point of origin to their destinations. With that purpose in mind, consideration of the following data supports the continuation of HOV lanes in their present status and future construction of such lanes: Each freeway lane capacity, at posted speeds approximates 2,200 vehicles per hour with spacings of 141 feet. Southern California's average vehicle occupancy (AVO) is almost 1.1, thus, a 2+ HOV lane will have twice the person -throughput capacity of a mixed flow lane if both are operating at maximum vehicle capacity. The strongest contrast becomes most clear under congested flow conditions. Stop -and -go traffic, averaging 10 miles per hour (MPH) reduces the per -Jane capacity to 1,173 vehicles per hours and spacing to 30 feet. With Southern California's AVO of 1.1, the person throughput of such a mixed flow lane is only 1,291 vehicles per hour. However, a 2+ HOV lane operating at 65 MPH, equals or surpasses the person throughput of the congested mixed flow lane with spacings as great as 570 feet. A 3+ HOV lane could equal this throughput with spacings of 915 feet, or less than 6 vehicles per lane -mile. Operating at maximum vehicle capacity, a 3+ HOV lane would have a throughput of 7,7000 vehicles per hour or six times more the person throughput capacity of the mixed flow lane. Clearly, HOV lanes offer both higher levels of person throughput and personal safety (due to greater spacings) that is easily quantifiable. In response to a request for its opinion of the impacts of AB 44 (McClintock) from Caltrans Director Medina, the U.S. Department of Transportation Federal Highway Administration (FHWA) has stated that both Interstate Maintenance Program and Congestion Mitigation and Air Quality Improvement Program funds may not "be provided for a project which will result in the construction of new capacity available to • • • 00002_ • • • single occupant vehicles unless the project consists of a high occupancy vehicle facility available to single occupant vehicles only at other than peak travel times." Many issues remain unresolved before a determination to prevent further HOV lane construction, as SB 14 intends, should be made. SB 14 applies different standards for measuring the effectiveness of future and present HOV lanes. The only specified standard for future study is a projection of level of use during peak traffic hours. The stated standard for a decision to convert existing HOV lanes to general use is whether traffic congestion relief has been achieved as a direct result. The bill should be amended to make the two the same. Either congestion relief as a direct result should be defined in the study or the test for current lanes should be based upon standards to be determined by the study. Level of use probably is a better measure of effectiveness than such blurry data as number of carpools created. SB 14 states that Caltrans, in consultation with the local transportation authority, shall propose a strategy to increase the level of use of future HOV lanes. However, at all other decision points imposed by the bill. Caltrans alone makes the determination. The bill should be amended to adopt existing law language requiring approval of the County transportation planning agency in deciding to authorize HOV lanes. If SB 14 were to pass in its current form, Caltrans could unilaterally repeal existing HOV lanes that were jointly approved under the provisions of the bill. SB 14 should be amended to require joint decision making with regard to HOVs. Stab Recommendation: OPPOSE UNLESS AMENDED 00002? • • • • • • Date of Analysis: January 28, 1999 Bill Number/Author: SB 17 (Liz Figueroa, D- Fremont) Introduced December 7, 1998 Subject: Transit Pass Tax Credits Status: Assigned to The Senate Revenue and Taxation Committee No Hearing Date Yet. Summary: SB 17 would permit employers who provide their employees a subsidized transit pass to claim a tax credit for up to 40 percent of the cost of the transit pass. This tax credit would sunset on December 1, 2004. SB 17 would also require the California Research Bureau to submit a report to the Legislature by January 1, 2003 on the cost of the tax credit, number of passes issued and the total public transit ridership in California for income years 1999 through 2001. Impacts on Riverside and San Bernardino County: Both the Riverside County Transportation Commission (RCTC) and the San Bernardino Associated Governments (SANBAG) jointly contract for rideshare services that include incentives to both employers and employees that encourage rideshare activities such as riding public transit. Further, RCTC and SANBAG both contribute substantially to the contract with Southern California Rideshare to promote and implement a regional rideshare program. Additionally, both RCTC and SANBAG have made substantial investments in high occupancy vehicle lane infrastructure. These programs have been tremendously successful in reducing the number of single occupant vehicles on the road in the area. Additional incentives such as would be offered by SB 17 will certainly assist the effort to reduce the number of vehicles on the road, provide cleaner air and ultimately lead to a better quality of life for Riverside and San Bernardino County residents. Staff Recommendation: SUPPORT. 000023 • i • Date of Analysis: February 5, 1999 Bill Number/Author: SB 63 (Hilda Solis, D -El Monte) Introduced December 7, 1998 Subject: High Occupancy Vehicle Lanes Status: Assigned To The Senate Transportation Committee — No Hearing Date Yet. Summary: SB 63 would require the Department of Transportation (Caltrans) to reduce the current High Occupancy Vehicle (HOV) minimum occupancy requirement for the 11 -mile portion of the San Bernardino Freeway (I-10) known as the El Monte Busway from 3 plus to 2 plus. The present requirement of 3 plus has existed since 1976. Staff Comments: Requiring Caltrans to convert the El Monte Busway to 2 plus conflicts with the existing Caltrans District 7 agreement with the Los Angeles County Metropolitan Transportation Authority (LACMTA). The agreement, is designed to protect express bus route headways by keeping free flow in the busway. The agreement was necessary because the facility was built as an exclusive busway in 1973 and made available to 3 plus carpools later. Since a federal transit grant was used in constructing the busway, SB 63 also could open the door to Federal Transit Administration involvement. In response to a request opinion of the impacts of AB 44 (McClintock) from Caltrans Director Medina, the U.S. Department of Transportation Federal Highway Administration (FHWA) has stated that both Interstate Maintenance Program and Congestion Mitigation and Air Quality Improvement Program funds may not "be provided for a project which will result in the construction of new capacity available to single occupant vehicles unless the project consists of a high occupancy vehicle facility available to single occupant vehicles only at other than peak travel times." Further, the FHWA stated that "the State (California) may not unilaterally decide to end the operation of HOV lanes, even by paying back the funds it received." A similar issue may arise, should SB 63 be passed into law. While SB 63 exclusively addresses an issue in Los Angeles County, the precedent setting nature of the legislation merits consideration by others. Disturbing is the fact that SB 63 would nullify a nearly 25 year old operating agreement between Caltrans and LACMTA. Should the Riverside County Transportation Commission or San Bernardino Associated Governments ever enter into similar agreements with Caltrans, feeling secure in their continuation would be essential. Based on the precedent setting nature of SB 63, staff recommends opposing SB 63. Staff Recommendation: OPPOSE. 000024 • • • Date of Analysis: January 28, 1999 Bill Number/Author: SB 98 (Richard Alarcon D -Los Angeles) Introduced December 8, 1998 Subject: Vehicle License Fees for Air Pollution Status: Assigned To The Senate Transportation Committee — No Hearing Date Yet. Summary: Existing law provides the South Coast Air Quality Management District (SCAQMD) the authority to impose a $1 fee on vehicle registrations. The revenues generated from the fee support a program, administered by the SCAQMD's Technical Advancement Office (TAO), which encourages participation in projects to increase the proliferation and use of clean -burning fuels. In August 1999, the SCAQMD's authority to impose this fee will expire. SB 98, an urgency measure that is identical to AB 38 (Washington), proposes to extend the SCAQMD's exiting authority to impose the $1 fee until August 1, 2004. Staff Comments: The TAO primarily funds projects related to assisting, through research or purchases, heavy-duty vehicle fleet conversions from diesel fueled to clean fueled engines. Many of the fleets benefiting from the TAO work reside in Riverside or San Bernardino County. The work of the TAO and the Mobile Source Reduction Review Committee (MSRC), of which both the Riverside County Transportation Commission and San Bernardino Associated Governments are members, frequently lead to healthy partnerships in their efforts to maximize the use of vehicle license fees intended to facilitate cleaner air. Staff Recommendation: Seeing the past and potential future receipt of funds for Riverside and San Bernardino Counties, staff recommends: SUPPORT. 000025 • • • Date of Analysis: January 28, 1999 Bill Number/Author: SB 117 (Kevin Murray, D -Los Angeles) Introduced December 18, 1998 Subject: Status: Summary: Environmental Enhancement and Mitigation Program Fund Assigned To The Senate Transportation Committee — No Hearing Date Yet. Part of the 1989 Transportation Blueprint was the addition of the Environmental Enhancement and Mitigation Demonstration Program Fund (EEM). Beginning in 1991, existing law mandated an annual allocation to the EEM of $10 million for ten years. The fund was created to support a grant program for local, state, federal and nonprofit agencies to apply for and receive grants funding environmental mitigation projects. Projects awarded grants from the EEM fund must related to environmental mitigation of modifying existing transportation facilities or the design, construction or expansion of new transportation facilities. SB 117 proposes to make permanent the existence of the EEM fund and to remove its status as a "demonstration program." In addition to making the EEM an annual program SB 117 maintains the annual $10 million allocation to the fund. Staff Comments: The EEM program has been highlighted as part of the CTC's overall strategy in creating both a regional (local) Transportration Enhancement Activity (TEA) program and a state level TEA program. The issue was the uncertainty of whether there would be a bill which would extend the program beyond 2000. SB 117 is the vehicle to effectuate the necessary extension. Both Riverside and San Bernardino County are areas of non -attainment of Federal Clean Air Standards. The EEM program offers an opportunity to receive funding which may assist the effort to alleviate any potential negative impacts of transportation projects. Additionally, the program creates the opportunity to receive funding for innovative transportation projects/facilities that may lead to cleaner air quality or more efficient planning such as the Community Environmental Transportation Planning process (CETAP) being initiated in Riverside County. Staff Recommendation: SUPPORT. 00002 ) OUI VERSIDE COUNTY TR ANSPOR TATI ON COMMI N/SAN BERNARDINO ASSOCIATED GOVERNMEI POSI TIONS ON ATE LEGISLATION Legislation/Author Description Bill Status Staff's Recommended Position Board Adopted Position/ Date of Adoption AB 38 (Washingt on) Extends SC AQMD Authority to collect $1 vehicle license fee for air quality programs. Awaiting hearing date in the Assembly Transportation Committee . SUPPORT AB 44 (McClintock) Would require Caltrans and local authorities to redesignate all existing HOV lanes as mixed flow . Awaiting hearing date in the Assembly Transp ortation Committee . OPPOSE AB 74 (Strom -Martin) Would permit a private rail freight operation to compete for State Intercity Rail funding. Awaiting hearing date in the Assembly Transportation Committee. OPPOSE AB 102 (Wildman and Hertzberg) Would fund the 1989 Priority Soundwall Retrofit list off -the -top of the State Highway Account. No Committee Assignment yet. SEEK AMENDMENT SB 14 (Rainey) Would require exten sive study prior to construction of future HOV lanes. Awaiting hearing date in the Senate Transportation Committee. OPPOSE U NLESS AMENDED SB 17 (Figueroa) Wo uld permit employers to receiv e a tax credit for purchasing transit passes for their employers. Awaiting hearing date in the Senate Rev enue and Tax ation Committee. SUPPORT SB 63 (Solis) Would reduce the minimum occupancy for the El Monte Busway from 3 plus to 2 plus. Awaiting hearing date in the Senate Transportation Committee. OPPO SE SIAlarc on) Extends SCA(1ML) Authority to collect $1 vehicle license fee fo r air quality programs. Awa hearing date the Senate Transportation Committee. SUPPORT ar S13 117 (Murray) Makes the State Environmental Enhancement and Mitigation fund permanent. Awaiting hearing date in the Senate Transportation Committee. SUPPORT • • SUBCOMMITTEE ON GROUND TRANSPORTATION Don Young, AK Tom Petri, WI, Vice -Chair Sherry Boehlert, NY Herb Bateman, VA Howard Coble, NC John Duncan, Jr., TN Tom Ewing, IL Wayne Gilchrest, MD Stephen Horn, CA Bob Franks, NJ John Mica, FL Jack Quinn, NY Tillie Fowler, FL Vernon Ehlers, MI Spencer Bachus, AL Steve LaTourette, OH Sue Kelly, NY Ray La1ood, IL Richard Baker, LA Charles Bass, NH Bob Ney, OH Jack Metcalf, WA Ed Pease, IN Asa Hutchinson, AR Merrill Cook, UT John Cooksey, LA John Thune, SD Frank LoBiondo, NJ J.C. Watts, Jr., OK Jerry Moran, KS John Doolittle, CA Lee Terry, NE Donald Sherwood, PA Gary Miller, CA John Sweeney, NY Jim DeMint, SC Vacancy Vacancy Vacancy Vacancy U.S. House of Representatives 106th Congress, First Session THOMAS E. PETRI, CHAIRMAN James Oberstar, MN Nick Rahall, U, WY Robert Borski, PA William Lipinski, IL Robert Wise, Jr., WY James Traficant, Jr., OH Peter DeFazio, OR Bob Clement, TN Jerry Costello, IL Eleanor Holmes Norton, DC Jerrold Nadler, NY Pat Danner, MO Robert Menendez, NJ Corrine Brown, FL James Barcia, MI Bob Filner, CA Eddie Bernice Johnson, TX Frank Mascara, PA Gene Taylor, MS Juanita Millender-McDonald, CA Elljah Cummings, MD Earl Blumenauer, OR Mar Sandlin, TX Ellen Taurcher, CA Bill Pascrell, Jr.,' NJ Leonard Boswell, L4 Jim McGovern, MA Tim Holden, PA Nick Lampson, 7X John Baldacci, ME Marion Berry, AR Ronnie Shows, MS Brian Baird WA Shelley Berkley, NY 00002a SUBCOMMITTEE ON COAST GUARD AND MARITIME TRANSPORTATION SR/4D WAYNE T. GILCHREST, CHAIRMAN Frank LoBiondo, NJ, Vice -Chair Don Young, AK Howard Coble,NC Bud Shuster, PA (ex officio) Peter DeFazio, OR Gene Taylor,MS Brian Baird, WA James Oberstar, MN (ex officio) 1 000030 1 • • COMMITTEE ON TRANSPORTATION AND INFRASTRUCTURE Don Young, AK Tom Petri, WI, Vice -Chair Sherry Boehlert, NY Herb Bateman, VA Howard Coble, NC John Duncan, Jr., TN Tom Ewing, IL Wayne Gilchrest, MD Stephen Horn, CA Bob Franks, NJ John Mica, FL Jack Quinn, NY Tillie Fowler, FL Vernon Ehlers, MI Spencer Bachus, AL Steve LaTourette, OH Sue Kelly, NY Ray LaHood, IL Richard Baker, LA Charles Bass, NI -I Bob Ney, OH Jack Metcalf, WA Ed Pease, IN Asa Hutchinson, AR Merrill Cook, UT John Cooksey, LA John Thune, SD Frank LoBiondo, NJ J.C. Watts, Jr., OK Jerry Moran, KS John Doolittle, CA Lee Terry, NE Donald Sherwood, PA Gary Miller, CA John Sweeney, NY Jim DeMint, SC Vacancy Vacancy Vacancy Vacancy 41R/34D BUD SHUSTER, PA, CHAIRMAN James Oberstar, MN I Nick Rahal1,11, WV Robert Borski, PA William Lipinski, IL Robert Wise, Jr., WV James Traficant, Jr., OH Peter DeFazio, OR Bob Clement, TN Jerry Costello, IL Eleanor Holmes Norton, DC Jerrold Nadler, NY Pat Danner, MO Robert Menendez, NJ Corrine Brown, FL James Barcia, MI Bob Filner, CA Eddie Bernice Johnson, TX Frank Mascara, PA Gene Taylor, MS Juanita Millender-McDonald, CA Elijah Cummings, MD Earl Blumenauer, OR Max Sandlin, TX Ellen Tauscher,'CA Bill Pascrell, Jr., NJ Leonard Boswell, 1,4 Jim McGovern, MA Tim Holden, PA Nick Lampson, TX John Baldacci, ME Marion Berry, AR Ronnie Shows, MS Brian Baird, WA Shelley Berkley, NV 000031 SUBCOMMITTEE ON WATER RESOURCES & ENVIRONMENT 20R / 16D ! SHERWOOD L. BOEHLERT, CHAIRMAN Donald Sherwood, PA, Vice -Chair Don Young, AK Herb Bateman, VA Wayne Gilchrest, MD Stephen Horn, CA Bob Franks, NJ Jack Quinn, NY Vernon Ehlers, MI Steve LaTourettc, OH Sue Kelly, NY Richard Baker, LA Bob Ney, OH Asa Hutchinson, AR Frank LoBiondo, NJ John Doolittle, CA Vacancy Vacancy Vacancy Bud Shuster, PA (ex officio) 000032 Robert porski, PA Gene Tiylor, MS Earl Blwnenauer, OR Brian Baird WA Bob Clement, TN Jerry Costello, IL Robert Menendez, NJ James Barcia, MI Frank Mascara, PA Ellen TTuscher, CA Bill PasFrell, Jr., NJ Leonard Boswell, IA Jim McGovern, MA Nick Lampson, TX John Ba1dacci, ME James pberstar, MN (ex officio) CLIFF MADISON GOVERNMENT RELATIONS, INC. • TO: Dave Shepherd FROM: Cliff Madison DATE: January 19, 1999 SUBJECT: House Transportation Appropriations The membership of the House Subcommittee is as follows: • itEPUBLICANS Frank Wolf, Chair (Va.) Tom DeLay (Tex.) Ralph Regula (Ohio) Hal Rogers (Ky.) Ron Packard (Calif.) Sonny Callahan (Ala.) Todd Tiahrt (Kansas) Robert Aderholt (Ala.) Kay Granger (Tex.) 2M -A Maryland Ave., N:E. Washington, D.C. 20002 (202) 543-9395 Facsimile (202) 543-4297 Subcommittee Transportation Appropriations DEMOCRATS Martin Sabo (Minn.) John Olver (Mass.) Ed Pastor (Ariz.) James Clyburn (S. C.) Carolyn Kilpatrick (Mich.) Jose Serrano (N.Y.) 000033 T 0 i T O' d .LAO NOS I atiW .I 1O T T = b T 23 _L 66-6 T tl1' CLIFF MADISON GOVERNMENT RELATIONS, INC, 044910 TO: Paul Blackwelder - Dave Shepherd FROM: Cliff Madison DATE: January 30, 1999 SUBJECT: January 1999 Federal Affairs Report 254-A Maryland Ave., N.E. Washington, D.C. 20002 (202) 543-9395 Facsimile (202) 543-4297 Generally, during January, the Committee's of the 106th Congress organized, made assignments, and determined the schedule of events for 1999. On Wednesday, January 6, I met with Ken staff of the House Surface Transportation Subc the impact of the "Livingston amendment" whic_ FY 99 Transportation Appropriations Act, on projects" which are contained in TEA -21. On Friday, January 8, I faxed to Mr. She of the House Transportation and Infrastructu 106th Congress. And I faxed the Republican Me Appropriations Committee. douse, and Jim Zoia, ittee to determine is contained in the the "high priority herd the membership e Committee for the rship on the House On Tuesday, January 12, I faxed the sch dule of recesses of the House of Representatives to Mr. Shepherd. On Tuesday, January 19, I faxed membership assignments of the Subcommittees of the House Appropriations Committee. On Wednesday, January 20, I the Senate Aviation Subcommittee Improvement Program which expires I faxed a copy of the House Subcommittee schedule of hearings attended a hearing conducted by on the extension of the Airport on March 30r 1999. In addition, Transportation Appropriations and dead -lines to Mr. Shepherd. On Tuesday, January 26, I attended a; luncheon at which Chairman of the House Transportation and Infrastructure Committee Bud Shuster outlined the priorities of his Committee for 1999. On Monday, February 1, the President will present his Budget requests for FY 2000. 000031 Date of Analysis: February 5, 1999 Bill Number/Author: SB 63 (Hilda Solis, D -El Monte) Introduced December 7, 1998 Subject: High Occupancy Vehicle Lanes Status: Assigned To The Senate Transportation Committee — No Hearing Date Yet. Summary: SB 63 would require the Department of Transportation (Caltrans) to reduce the current High Occupancy Vehicle (HOV) minimum occupancy requirement for the 11 -mile portion of the San Bernardino Freeway (I-10) known as the El Monte Busway from 3 plus to 2 plus. The present requirement of 3 plus has existed since 1976. Staff Comments: Requiring Caltrans to convert the El Monte Busway to 2 plus conflicts with the existing Caltrans District 7 agreement with the Los Angeles County Metropolitan Transportation Authority (LACMTA). The agreement, is designed to protect express bus route headways by keeping free flow in the busway. The agreement was necessary because the facility was built as an exclusive busway in 1973, and made available to 3 plus carpools later. Since a federal transit grant was used in constructing the busway, SB 63 also could open the door to Federal Transit Administration involvement. In response to a request opinion of the impacts of AB 44 (McClintock) from Caltrans Director Medina, the U.S. Department of Transportation Federal Highway Administration (FHWA) has stated that both Interstate Maintenance Program and Congestion Mitigation and Air Quality Improvement Program funds may not "be provided for a project which will result in the construction of new capacity available to single occupant vehicles unless the project consists of a high occupancy vehicle facility available to single occupant vehicles only at other than peak travel times." Further, the FHWA stated that "the State (California) may not unilaterally decide to end the operation of HOV lanes, even by paying back the funds it received." A similar issue may arise, should SB 63 be passed into law. While SB 63 exclusively addresses an issue in Los Angeles County, the precedent setting nature of the legislation merits consideration by others. Disturbing is the fact that SB 63 would nullify a nearly 25 year old operating agreement between Caltrans and LACMTA. Should the Riverside County Transportation Commission or San Bernardino Associated Governments ever enter into similar agreements with Caltrans, feeling secure in their continuation would be essential. The bill should be amended to require consultation with the local transportation agency and an exhaustive review of the impacts changing the minimum occupancy of the lane in question prior to mandating such a change. Based on the precedent setting nature of SB 63, staff recommends an oppose unless amended position on SB 63. Staff Recommendation: OPPOSE UNLESS AMENDED. • AGENDA ITEM 7 • • • • RIVERSIDE COUNTY TRANSPORTATION COMMISSION DATE: February 22, 1999 TO: Budget and Implementation Committee FROM: Bill Hughes, Bechtel Project Manager Karl Sauer, Bechtel Resident Engineer THROUGH: Paul Blackwelder, Deputy Executive Director SUBJECT: Request for Additional Construction Contingency for Construction Contract No. RO-9847 for Construction of Sound Walls on SR 91 Between Van Buren Boulevard and Mary Street in the City of Riverside In 1994, RCTC designed the Route 91 HOV Median Widening Project, from Magnolia to Mary St. This project added 1 - 11 ft. HOV lane, with no buffer, in the median of Route 91. Because of the limited median width the project required the re -stripping of the existing 3 - 12 ft. mixed flow lanes to 3 - 11 ft. mixed flow lanes to make room for the new HOV lane. Without this reduction in travel lane and buffer width, outside widening of the freeway would have been required, and the necessary environmental clearance would have delayed construction of the project. Caltrans agreed to move forward with the construction of the Route 91 HOV Median Widening Project, with the stipulation that RCTC restore the travel lane and buffer width in the future to full standards widths when additional construction was undertaken. The Measure "A" improvements to State Route 91 between Magnolia and Mary Streets are as follows: 1. Construction of the HOV lanes using reduced standard lane widths, reduced standard median, and reduced standard buffer. ( This project is completed) 2. Construction of Phase I Sound Walls to mitigate for the HOV lane installation. (This project is nearing completion) 3. Construction of Phase II Sound Walls and auxiliary lanes to both mitigate for the HOV lane project, and to provide operational improvements. (This project is currently under design and is funded) 4. Widening of lanes to restore the standard 12 foot lane widths and HOV buffer. The first portion of this effort will be included with the Auxiliary Lane project. In June of 1998, the Commission awarded a PS&E Design Contract to URS Greiner for the Route 91 Phase II Sound Wall and Auxiliary lane Project. This Phase II Project will incorporate into its design the restoration of the travel lanes and HOV buffer width at the locations of the proposed auxiliary lanes. As part of the project scoping efforts associated with completing this design, RCTC Staff and Caltrans agreed to a reduced future cross section that would not require a full standard median and HOV buffer. This agreement on project scoping will significantly reduce the cost of the future lane restoration project to put all of the lanes back to 12 foot lane widths. 000035 At the June 1998 meeting, the Commission also awarded Construction Contract No. RO- 9847, to R. Fox Construction, Inc., for construction of the Phase I Sound Walls on Route 91, from Van Buren Blvd. to Mary St., in the City of Riverside, in the amount of $2,486,486, and a contingency amount of $113,514 (5%) to cover potential change orders encountered during construction. One of the Sound Walls, Sound Wall #183A, was positioned at a location that was consistent with providing only enough room to allow for the proposed auxiliary lane. At the time this design was performed, Caltrans had not agreed to a reduced cross section that would allow for the reduced median to remain as a permanent feature. Therefore, Sound Wall #183A was thought to be a throw -a -wall and was designed at a location that would minimize the cost of constructing the wall. With the new direction from Caltrans that the future median did not have to be widened to full standard, the wall could be moved back and would not have to be torn down to provide for the future lane widening improvements to restore standard lane width to SR 91. The portion of the R. Fox bid related to construction of Sound Wall #183A is $430,000. Staff initiated discussions with R. Fox prior to the start of any construction activities to relocate Sound Wall #183A to a location that would allow for the restoration of the travel lane and buffer width. Sound Wall #183A is to be constructed on top of a new retaining wall. Relocating the wall further back from the existing freeway will require a taller retaining wall and more excavation and backfill work. Staff gave R. Fox advance approval to proceed with the Change Order to construct Sound Wall #183A in its relocated position to prevent delay of the Contractor's construction schedule. It is estimated that the total cost of the Change Order will be approximately $70,000, based on the increased quantities of bid items. The R. Fox Construction Contract No. RO-9847 is approximately 75% complete. This major Change Order of $70,000 combined with the other change orders for the Phase I work will completely deplete the construction contingency for the project and leave no contingency to cover any additional change order's that may arise during the final 25% of construction. Staff is requesting that the project contingency of $113,514 be increased by an additional $40,000 to $153,514 (6%). This will assure enough remaining project contingency to complete construction of the project. Financial Assessment Project Cost current project cost $2,486,486+•$113,514 = $2,600,000 additional contingency = $40,000 new revised not to exceed cost = $2,640,000 Source of Funds Included in Fiscal Year Budget Measure "A" Y Year Included in Program Budget Y Year Programmed Approved Allocation NA Year of Allocation Budget Adjustment Required Y For Additional $40,000 000030 STAFF RECOMMENDATION: • • • That the Budget and Implementation Committee recommend that the Commission authorize the increase of the project construction contingency by $40,000 for Construction Contract No. RO-9847 from $113,514 to $153,514. The new not to exceed value of the contract will be $2,640,000. 000037 • AGENDA ITEM 8 • • • • RIVERSIDE COUNTY TRANSPORTA TION COMMISSION DATE: February 22, 1999 TO: Budget & Implementation Committee FROM: Jerry Rivera, Program Manager THROUGH: Eric Haley, Executive Director SUBJECT: Quarterly Call Box Update Attached are the operational statistics for the call box system for the quarter ending December 31, 1998. There were a total of 15,788 calls during the quarter; 9,944 to Inland CHP and 5,844 to Indio CHP dispatch offices. This represents a decrease of 5,310 calls or 25.1 % in call box activity over the quarter ending September 30, 1998. Although this may seem unusual, the number of calls typically decrease during the second quarter. In the last three years, the call box calls decreased 20.9%, 18.7%, and 18.4% during the same period. The average calls per day were 172 for the current quarter versus 229 for the previous quarter. In comparing the quarter ending December, 1998 to December, 1997 call volumes, there has been a decrease of 2,194 calls (-12.2%) from last year to this year. Unfortunately, all call box programs throughout the state have been experiencing a similar decrease in usage which may be attributed to less older vehicles on the highway due to strict insurance requirements. Financial Assessment Project Cost N/A Source of Funds N/A Included in Fiscal Year Budget Year Included in Program Budget Year Programmed Approved Allocation Year of Allocation Budget Adjustment Required Financial Impact Not Applicable STAFF RECOMMENDATION: That the SAFE Board receive and file. 000038 • • • 1997 Oct Nov Dec 1000 2000 3000 4th QTR '97 4th QTR '98 Active Call Boxes 1,118 1,126 tocflP 4000 Calls to CHP 17,982 15,788 5000 1998 6000 Calls/Box 16.1 14.0 7000 Dec Totals Oct - Dec Totals DJ Jo iGDWWns apisaan!N 8661. Japan Produced by: TeleTran Tek Services Page: 1 Data Source: LA Cellular 00003;1 Riverside Cellular . ,. 1997 4th Quarter Average Call Lengths Analysis :: 1998 Average Call Lengths 4th Quarter 3:37 Active Call Oct Nov Dec 3:43 3:32 3:38 Boxes X 35 minutes per call 4th Quarter 3:51 box*, = Total Oct Nov Dec 3:54 3:48 3:52 Cellular Time Authorized... 'The Amount of time each call box is authorized to use in one month without an additional charge from LA Cellular 1,118 Call boxes 117,390 Call Box Cellular Minutes Allocated 117,390 minutes Used to call... CHP 65,188 0 56% ... Maintenance 10,141 0 9% ... Other Numbers 139 0 0% Total Used 75,468 ® 64% Minutes 1,126 CaII boxes 118,230 Call Box Cellular Minutes Allocated 118,230 minutes Used to call... CHP 60,884 0 51% .. Maintenance 1.2,016 1 1 0% ...-Other Numbers 441 0 0% Total Used 73,341 • 62% Minutes 4. Remaining 41 ,922 ® 36% Total Used Remaining 44,889 • 38% Total Used Cellular .. �6 Time Used 63% .. � .. Maint. 85% 11 % Cellular 38%,. Time Used-..: 63% Maint. 52% 1 0% Other 0°lo 1997 CHP Close-up (4th QTR) Call Length Number of calls Percent Other 0% 1998 CHP Close-up (4th QTR) ;. CaII Length Number of calls Percent 0 to 1 min 3,313 - `' 18% 0 to 1 min 2,904 1 18% 1 to 3 min 5,998 33% 1 to 3 min 4,826 31% 3 to 5 min 4,070 23% 3 to 5 3,491 g ..,'= min 22% 5 to 7 min 2,361 = 13% 5 to 7 min 2,141 14% 7 to 9 min 1,165 6% 7 to 9 min 1,167 Ei 7% over 9 min 1,075 El 6% over 9 min 1 ,259 8% Total 17,982 calls 100% 1997 Maintenance Calls (4th QTR) Total 15,788 calls 100% 1998 Maintenance Calls (4th QTR) Calls Calls Expected* 1 33,540 Actual 41,129 Expected* 1 33,780 Actual 38,777 y �� Too Many 0 7,589 18% ..... .. . ,. 13% Too Many ® 4,997 `Call boxes are scheduled to Call Maintenance every 3 days (10 times/month) 8661 -10P DnO HIV Produced by Tel T n Tek Services �u0o4 Page: 2 Data Source: LA Cellular • • h Quarter 1997 Call Highway Boxes Calls to Avg CHP Calls/Box RV -010 396 5,284 13.3 RV -015 201 4,513 22.5 RV -031 RV -033 6 42 7.0 2 11 5.5 4th Quarter 1998 Can Highway Boxes Calls to CHP Avg Calls/Box RV -010 396 4,574 1 1 .6 RV -015 204 4,168 20.4 RV -031 6 36 6.0 RV -033 RV -060 75 1,321 17.6 RV -062 16 267 16.7 RV -071 0 0 0.0 RV -074 30 291 9.7 RV -078 7 21 3.0 RV -079 30 269 9.0 RV -086 11 66 6.0 RV -091 161 3,208 19.9 RV -095 7 10 1.4 RV -1 11 12 131 10.9 RV -177 26 122 4.7 RV -215 98 2,183 22.3 RV -243 14 97 6.9 RV -371 RV -865 12 69 5.8 14 77 5.5 unassigned 0 0 0.0 TOTALS 1,118 17,982 16.1 2 12 6.0 RV -060 75 1,146 15.3 RV -062 20 269 13.5 RV -071 0 0 0.0 RV -074 30 277 9.2 RV -078 7 17 2.4 RV -079 30 223 7.4 RV -086 11 66 6.0 RV -091 161 2,835 17.6 RV -095 7 14 2.0 RV -111 12 91 7.6 RV -177 26 28 1.1 fi RV -215 94 1,804 19.2 RV -243 14 76 5.4 RV -371 12 66 5.5 RV -865 14 86 6.1 unassigned 5 0 0.0 TOTALS 1,126 15,788 14.01 CD N l 7 0 866 1. as Dfl HIV 7 Produced by: TeleTran Tek Services Page: 3 Data.Source: LA Cellular 6000041 Park N Calls Av er age From Until Ride to CHP Calls/Da C 10:00 PM 11:00 PM 8 6 560 564 y 6.1 6.2 11:00 PM 12:00 AM 3' 5 473 467 375:- 377 5.2 5 .1 12:00 AM 1:00 AM 0' 5 4.1 4 .1 1:00 AM 2:00 AM 1 3 260 238 2 .8 2.6 Total calls 2,716 2,430 2:00 AM 3:00 AM 21 4 221` 221 2.4� 2 .4 3:00 AM 4:00 AM 0 1 229 167 2.5 1.8 4:00 AM 5:00 AM Oj 3 21 1 206 162 392 234 2.3 1 .8 5:00 AM 6:00 AM 4.3 2 .6 Avg calls/day 29.8 26.6 r 6:00 AM 7:00 AM 7:00 AM 8:00 AM 7> 2 625 324 792 524 6.8 3.6J 8.7 5 .7 8:00 AM 9:00 AM 13, 12 784 808 8.6 8.9 9:00 AM 10:00 AM 5 7 823: 728 9,0 8.0 Total calls 7,169 5,657 10:00 AM 11:00 AM 101 5 866 752 9.5 8.2 11:00 AM 12:00 PM 15 8 1,041 722 1,141 866 1,097 933 11:4 7 .9 12.5 9.5 12.0;, 10.2 12:00 PM 1:00 PM 17 16 14 21 1:00 PM 2:00 PM 2:00 PM 3:00 PMI 22 91 1,284 1,024 3:00 PM 4:00 PM 22 19 1,270 1,088 1,287 1,201 1,179 1,129 14.1 11.21 :13.9, 1 1.9 4:00 PM 5:00 PM 37, 34 14.1 13.2 5:00 PM 6:00 PM 6:00 PM 7:00 PM 24 20 20 21 986 ` 1,071 782 881 12. 9 12.4 10. 8 11.7 7:00 PM 8:00 PM 13 14 8. 6 9. 7 8:00 PM 9:00 PM 3 11 692 750 7.6 8.2 9:00 PM 10:00 PM 6. 2 617 557 6. 8 6.1 251 230 17,982 15,788 197.1 173.0 4i Qvi1 '97 Produced by: TeleTran Te k Services 898 772 679 Avg calls/day 78.6 62 .0 Tot al calls 8,097 7,701 Avg calls/day 88.7 84. 4 moor 11 00 1M 13:00 AM 1'00 AM ]'.00 AA1 3:00 A.1 1:00 AM 00 AM 00 AM 7:00 AM 6 00 AM 0 '00 AM 10:00 11 00 AM 1 ]:00 .M 00 IM 7:aa.A, 00.M 00.M 00 .M A 00 .H 7 00 fM 0 00.M 0 00 .m 4th Quarter '98 6 J rte-! J J 0.0 5.0 10.0 15.0 Average n umber of calls by hour Page : 4 Data Source: LA Cellular • • • • • • 350 300 250 200 Goal 50 00 so w Pe ormance 0 Jan 98 Feb 98 Mar 98 Apr 98 May 98 Jun 98 Previous PM Cycle Preventive Percent of Previous PM Maintenance System Cycle Visits Visited Jan -98 51 5% Feb -98 136 12% Mar -98 400 36% Apr -98 185 16% May -98 208 19% Jun -98 95 8% Total 1,075 Summary PM visits needed to be on schedule 187 / Month (17%) 96% AVG Number of Active CaII Boxes 1,123 PM visits in the last 6 months 179 / Month (16%) nnL..O10 "I tive Maintenance July 98,- December 98 400 350 300 250 200 Goal ,.. 150. 100 so 0 ^m S ` a j s* x Performance } Jul 98 Aug -98 Sep -98 Ocl-98 Nov 98 Dec 98 Most Recent PM Cycle Preventive Percent of Most Recent Maintenance System PM Cycle Visits Visited Jul -98 183 16% Aug -98 202 18% Sep -98 302 27% Oct -98 77 7% Nov -98 279 25% Dec -98 83 7% Total 1,126 Summary PM visits needed to be on schedule 187 / Month (17%) 100% AVG Number of Active Call Boxes 1,123 PM visits in the last 6 months 187 /Month (17%) 010 Q NO Preventive Maintenance visits are required every 6 months. CD CD 0 CD CD CD 0 Q CD 8661-ia4JanO LOY 000043 Produced by: TeleTran Tek Services Page: 5 Data Source: GTE CALSAFE CALL BOX ACTIVITY REPORT • Mendocino c`1 Glenn Santa Cruz .SRS -_..."�...�.- ,-',.,.r / ej j sl // t Ca1SAFE' CaII Boxes Calls to CHP Calls/ Box Dee 1TD San Diego Riverside 1,636 1,126 20^,E 1.td 9 761 5.360 28% 15% 137,742 vY 20: 1 71,962 15% 6 0 4.: 84.2 63.9 MTC 3,134 :ls% 13,998 au o 181,412 ;18% 4.5 57.9 Ventura 521 6^F 1 922 5% 25,173 SrM 3 7 48.3 CVRS 1,274 16a 3.479 10% 46,999 10% 27 36.9 Santa Barbara 333 4% 747 2% 8.806 29., 2.2 26.4 Total 8,024 t nag- 35;267 Iwo, 472,094 mat, 4.4 58,8 Counties developing call box programs is Produced by: TeleTran Tek Services 00004/1 Page: 6 Data Source: Cellular tapes • • • THIS REPORT COVERS THE INLAND DISPATCH CENTER ONLY sIIeo )S01 }o }uaaled A "lost call" occurs when a call box caller hangs up or "redials" before reaching a CHP operator. Note: "redialing', or pressing the call button a second time, disconnects the caller and reconnects them at the end of the queue (calls are answered by CHP in the order they are received.) PERCENT OF;LOST :CALLS THE LAST2 YEARS 10% 9% 8% 7% 6% 5% 4% 3% 2% 1% g' 4 MONTH Percent Lost Jan -97 3% Feb -97 3% Mar -97 3°/0 Apr -97 4% May -97 4% Jun -97 5°%0 Jul -97 5°%0 Aug -97 5% Sep -97 4% Oct -97 4% Nov -97 4°0 Dec -97 5% Jan -98 3% Feb -98 5% Mar -98 5% Apr -98 4% May -98 4% Jun -98 4% Jul -98 5% Aug -98 8% Sep -98 7°/0 Oct -98 7% Nov -98 6% Dec -98 9% HOW LONG CALLS LASTED BEFORETHEY WERE "LOST" The length of time (in minutes) a motorist waited before hanging up or "redialing" On hold Oct -98 Nov -98 Dec -98 AVG 1 minute or less 1-2 minutes 15 sec 10% 11% 12% 11 % 30 sec 9% 11% 11% 10% 45 sec 18% 22% 19% 20% 41% 17% 13%;,, 1 min 14% 13% 17% 15% 1.5 min '- 13% 15% 13% 14% 2 min a . 9% a ` fir ' ° ,8% .2 .5 min '.5% 5% ;' �., "4° -� ' x' 5% 3 min 4% 4% 5% 4% 3.5 min 2% 2% 2% 2% 4.5 min 4% 3% 4% 4% 5.5 min 2% 2% 2% 2% 3+ minutes 2®3;minutds 6.5 min 2% 1% 1% 1% +6.5 min 6% 2% 3% 4% s!s/Cieub IIeo lsol apisaan!E 8661. aaianno int Produced by: TeleTran Tek Services Page: 7 Data Scbr iklASD 'ERSIDE DELAYED CALLANALYSIS THIS REPORT COVERS THE INLAND DISPATCH CENTER ONLY EXPLANATION OF A DELAYED CALL CHP considers a call to be "delayed" if the call is not answered within 10 seconds. A call must be answered for it to be a delayed call, otherwise it is a lost call. 90.0 RCE NTDELAY.ED 80, - 70% - 60% VERAGEDELAY 90 seconds 60 - 30 - 0' ro 0 D < r m 73 rc) m Answered in Oct -98 Nov -98 Dec -98 z ° 2 o m MONTH Jan -97 Percent Delayed 70% p; Average ; Delay . ;• 38 Feb -97 71% 36 Mar -97 72% 38 Apr -97 72% 38 May -97 72% 43 Jun -97 74% 49 Jul -97 77% 55 Aug -97 79% 60 Sep -97 76% 50 Oct -97 75% 44 Nov -97 76% 43 Dec -97 78% 51 Jan -98 76% 38 Feb -98 76% 48 Mar -98 77% 47 Apr -98 77% 42 May -98 77% 42 Jun -98 77% 44 Jul -98 79% 54 Aug -98 84% 78 Sep -98 82% 72 Oct -98 83% 66 Nov -98 80% 56 Dec -98 84% 77 DETAILED 4TH QUARTER ANALYSIS ON TIME 18% 31% 18% DELAYED 6% 8°/0 < 10 Secs 17% 20% < 30 Secs 31% 34% 16% 29% < 60 Secs 18% 17% 19% < 90 Secs 6% 5% 6% < 120 Secs 9% 7% 8°/d 20% > 120 Secs 20% 17% 23% AVERAGE 18% 31% 18% s% 8% 20% 1 CD Q CD CD CD Q :1) C/) 07 • 8661_ JOIaenO Litt • • Produced by: TeleTran Tek Services Page: 8 Data Source: CHP ACD • AGENDA ITEM 9 • • • RIVERSIDE COUNTY TRANSPORTA TION COMMISSION DATE: February 22, 1998 TO: Budget and Implementation Committee FROM: W. Dean Martin, Chief Financial Officer Louie Martin, Project Controls Manager THROUGH: Eric Haley, Executive Director SUBJECT: Quarterly Financial Reports Attached are Combining Statements of Revenues and Expenditures and Changes in Fund Balances (Unaudited) and the Highway and rail projects quarterly budget report for the Quarter Ending December 31, 1998. STAFF RECOMMENDATION: That the Budget and Implementation Committee request the Commission receive and file. Attachments 000047 • • STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES -GENERAL, SPECIAL REVENUE, AND CAPITAL PROJECTS FUNDS BUDGET VARIANCE EXPLANATIONS FOR SIX MONTHS ENDING DECEMBER 31,1998 REVENUE Federal, Local, State, & Other Government This category covers revenue sources that are on a reimbursement basis(i.e., not billable until the expenditure is incurred). These reimbursements include state rail bonds set aside for construction and engineering costs for the southside platform, $3.7 million in federal funding for improvements at Pedley, La Sierra and West Corona, and the historic Santa Fe Depot. The improvements to La Sierra and West Corona will now occur in FY2000. . Total revenue will be adjusted downward to $7.1 million in the Revised Budget for 98/99. Other Other revenue includes reimbursement from the Coachella Valley for TUMF participation in debt service for the 93 bonds which will be billed to CVAG no later than May 99. SAFE fees are paid by the state two months in arrears. STA revenues, budgeted at $2.4 million, are paid quarterly three months in arrears by the state. Interest Income The County of Riverside pays interest quarterly, subsequent to the end of the quarter. The interest earnings on certain bond reserve funds is paid semi-annually. EXPENDITURES Professional Services The variance is due to audit fees, most of which are paid in the first half of the year when audit field work occurs at the Commission and its funding recipients. Due to increase in unexpected audit fees, the mid -year budget will be revised upward. Highway ROW It was assumed that $4.1 million would be spent for right of way acquisition. Much of that will now be moved to fiscal year 2000 and will be split between engineering, right of way, and construction. 000048 Highway Construction A number of projects in the Coachella Valley(e.g., Monroe to Rubidoux) will now be constructed in FY2000. The revised budget has been lowered to reflect these changes. Otherwise, third quarter should see increased expenditures for construction projects. Highway/Rail Special Studies The budget is for CETAP activities which are not expected to commence until mid March. Regional Arterial Desert cities are expected to bill very heavily in the second half of the year. STA Distributions Claims from Beaumont and Corona have been approved but not allocated as of December 31, 1998. Amount of $835,000 is on reserve for RTA until allocation is needed. Sunline is claiming less than allocated amount. General Note: The first quarter of the year is primarily directed toward completing end of the year activities. Most vendors do not even began to bill us for current year activities until the month of September. Therefore, first half of the year numbers typically are considerably under budget. Most of the categories will begin to reflect more accurately in relation to the budget by third quarter of the fiscal year. • • • 000049 Description REVENUES Sates Tax Reven ues Measure A Othe r Sales Tax Revenu es Fed State Local & Other Govern Interest Incom e Other Rev en ues TOTAL REVENUES EXPENDITURES ADMINISTRATION Salaries & Benefits Gen eral Legal Serv ices Prof Services (Excludes Legal) Office Lease Gene ral Admin Expenses TOTAL ADMINISTRATION PROGRAMS/PROJECTS Salaries & Benefits General Legal Services Prof Services (Exclu des Legal) General Projects Highw ay Engineering Highway Con struction Highways ROW Special Stu dies Rail Engineering Rail Construction Rail ROW SCRRA Capital Contribu tio n Comm uter Assistance Region al Arterial Streets & Roads Special Transportion\Transit Project Mainten ance Project Operations Project Towing STA Distributions TOTAL PROGRAMS/PROJECTS Intergov ern Distribution Capital Outlay Riverside Coun ty Transportation Co mm ission BUDGET VERSUS ACTUALS-2nd Qtr. For Period Ending: 12/31/98 02/17/99 REMAINING PERCENT BUDGET ACTUALS BALANCE UTILIZATION 65,624,999.00 5,644,500.00 10,086,920.00 2,937,875.00 6,394,450.00 34,202,842.26 3,582,417.00 3,576,277.12 1,503,130.74 2,341,035.29 90,688,744.00 45,205,702. 41 657,544.00 316,934.86 97,500.00 37,569.94 483,020.00 452,489.73 220,000.00 98,594.30 677,895.00 352,424.85 2,135,959.00 1,258,013. 68 1,203,565.00 227,500.00 586,400.00 1,833,900.00 2,120,719. 00 8,317,225. 00 4,483,000.00 235,000. 00 238,170.93 8,046,300. 00 85,656.00 1,150,000.00 1,391,920. 00 7,895,150. 00 25,163,695.00 5,915,461. 00 597,294.00 1,106,127.00 679,628. 00 2,746,194. 00 74,022,904. 93 327,295. 00 166,200.00 TOTAL EXPENDITURES 76,652,358.93 Other Finan cing Sources(Uses) 31,422,156.74 2,062,083.00 6,510,642.88 1,434,744.26 4,053,414.71 52.11 63.46 35. 45 51. 16 36. 61 45,483,041.59 49. 84 340,609.14 59,930.06 30,530.27 121,405.70 325,470.15 48.19 38.53 93.67 44.81 51.98 877,945.32 58.89 512,688.01 690,876.99 118,598.82 108,901.18 65,086.60 521,313.40 585,947.08 1,247,952.92 129,251.81 1,991,467.19 1,719,044. 64 6,598,180.36 44,601.14 4,438,398.86 1,148.61 233,851.39 79,563.66 158,607.27 2,783,915.73 5,262,384.27 9,313.75 76,342 .25 36,984.00 1,113,016.00 552,859. 32 839,060 .68 700,037.58 7,195,112.42 13,184,739.96 11,978,955.04 2,829,407.00 3,086,054 .00 201,416.97 395,877.03 193,012.15 913,114.85 240,366.96 439,261.04 496,858 .00 2,249,336 .00 24,484,841 .79 49,538,063.14 127,295 .00 200,000 .00 15,471.00 150,729.00 25,885,621.47 50,766,737 .46 42 .59 52.13 11 .09 31 .95 6.09 20.66 0.99 0.48 33.40 34.59 10.87 3.21 39 .71 8.86 52.39 47.83 33.72 17 .44 35.36 18.09 33.07 38.89 9.30 33.77 QTRAF 0000 • 1 Description Operating Transfers In Operating Tran sfers Out Debt Service Issuance Costs Total Other Finan cin g So urces Uses Excess(Deficiency)of Revenue s And Othe r Financing Sou rces Ov er(Under)Expenditu res And Other Financing Uses FUND BALANCE July 1, 1998 FUND BALANCE December 31, 1998 90051• Riverside County Tra nsportation Commissio n BUDGET VERSUS ACTUALS-2nd Otr. For Period Ending: 12/31/98 02/17/99 REMAINING PERCENT BUDGET ACTUALS BALANCE UTILIZATION 688,715.00 31,067,628.00 0.00 819,873 .00 16,762,845.81 0.00 30,378,913.00 15,942,972.81 (16,342,527.93) 3,377,108.13 95,642,832.55 95,642,832.55 79,300,304.62 99,019,940.68 (131,158 .00) 14,304,782.19 0 .00 119 .04 53 .95 0 .00 14,435,940.19 52.48 (19,719,636.06) (20 .66) 0.00 100.00 (19,719,636.06) 124.86 • OTRAF ,ther Financing Sources(Uses) 000052 Description REVENUES Sa les Tax Revenue s Measure A Other Sates Tax Revenues Fed State Local 8 other Gove rn In tere st Inco me Othe r Reven ues TOTAL REVENUES EXPENDITURES ADMINISTRATION Salaries 8 Benefits Ge neral Legal Services Prof Services (Exclu des Legal) Office Lease Gen era l Adm in Expense s TOTAL ADMINISTRATION PROGRAMS/PROJECTS Salarie s 8 Benefits General Legal Services Prof Se rvices (Excludes Legal) Gene ra l Projects Highway Engin eerin g Highway Con struction Highways ROW Special Studies Ra il En gine ering Rail Constru ction Rail ROW SCRRA Capita( Con tribution Commuter Assistan ce Region al Arterial Streets i Roads Special Transpo rtion Uran sit Project Main ten ance Proje ct Operation s Project Towing STA Distributions GENERAL FUND 1,250,000. 00 3,582,417. 00 7,924. 18 107,702.62 174,271.51 5,122,315. 31 297,088. 51 36,408.97 442,271.55 92,678.64 332,926.48 1,201,374. 15 283,863.98 23,001.85 36,779. 92 0.00 0. 00 15.04 0. 00 880. 00 0. 00 0. 00 0. 00 36,984.00 119.31 0. 00 0.00 1,431,450. 00 69,347.42 130,622. 54 0.00 0.00 TOTAL PROGRAMS/PROJECTS 2,013,064. 06 In te rgovern Distribution 127,295. 00 Capital Ou tlay 14,542.76 TOTAL EXPENDITURES 3,356,275. 97 FSP/SAFE 0.00 0. 00 171. 10 44,907.08 593,379. 48 638, 457. 66 19,846.35 1,160. 97 10,218. 18 5,915.66 19,498. 37 56,639.53 45,468. 38 74.00 24,325.43 0. 00 0. 00 0.00 0. 00 0. 00 0.00 0.00 0. 00 0. 00 848. 19 0.00 0.00 0.00 129,285. 83 62,389.61 240,366. 96 0.00 502,758.40 0.00 928. 24 Riverside County Transportation Com mission ACTUALS BY FUND 6/30/98 For Perio d Endin g: 12/31/98 02/17/99 WESTERN COUNTY EASTERN COUNTY STATE TRANSIT ASSISTANCE QTRBF CVAG CONSTRUCTION 23,903,285.18 9,049, 557. 08 0. 00 0. 00 0. 00 0. 00 0. 00 0.00 3,567,794.64 0. 00 0. 00 0.00 338,542. 83 136,898.10 41,297. 12 277,504. 91 0. 00 0. 00 1,197,833. 00 0. 00 27,809,622.65 9,186,455.18 1,239,130. 12 277,504.91 0. 00 0.00 0. 00 0.00 0.00 0.00 0. 00 0.00 0.00 0.00 0.00 0. 00 183,355.65 92,210. 49 3,981.25 548,228. 26 0.00 (34,582. 65) 40,710. 00 268.61 79,563.66 2,783,915.73 9,313.75 0.00 551,891.82 0.00 9,759,752.76 519,035. 00 2,602. 53 0.00 0. 00 0.00 14,540,246. 86 0. 00 0.00 0.00 0.00 0. 00 37,718. 82 2,404.79 730, 924. 92 0.00 0. 00 0.00 0.00 0.00 0.00 0. 00 (84,892. 11) 3,424,987.20 878,922.00 0.00 0.00 0.00 0.00 4,990,065.62 0.00 0 .00 0.00 0. 00 0. 00 0.00 0. 00 0.00 0. 00 0.00 0.00 0. 00 0.00 0.00 0. 00 0. 00 0. 00 0. 00 0.00 0.00 0.00 0.00 0.00 0.00 0 .00 0.00 0.00 496,858 .00 496,858 .00 0 .00 0.00 560,326. 17 14,540,246.86 4,990,065 .62 496,858 .00 0.00 0. 00 0.00 0.00 0.00 0.00 0.00 0. 00 0.00 0.00 0.00 0.00 1,508.00 0 .00 0 .00 0.00 0 .00 0.00 0.00 784,929 .69 0 .00 0 .00 0.00 0.00 0.00 0.00 786,437.69 0 .00 0.00 786,437 .69 WESTERN COUNTY CONSTRUCTION 0. 00 0. 00 387.20 514,467.65 375,551. 30 890,406. 15 0. 00 0. 00 0.00 0.00 0.00 0.00 0.00 3,312 .48 0.00 0 .00 22,982 .08 933,987.33 283 .54 0 .00 0 .00 0 .00 0 .00 0.00 0 .00 0 .00 0 .00 0 .00 181 .19 0.00 0 .00 0 .00 960,746.62 0 .00 0.00 WESTERN COUNTY COMMERCIAL COMBINING PAPER TOTAL 0.00 0.00 0.00 41,810.43 0.00 02/17/99 34,202,842.26 3,582,417.00 3,576,277.12 1,503,130 .74 2,341,035.29 41,810.43 45,205,702 .41 0.00 0.00 0 .00 0 .00 0 .00 316,934.86 37,569 .94 452,489.73 98,594 .30 352,424.85 0.00 1,258,013.68 0 .00 0 .00 0.00 0.00 103,864.94 88,700.00 2,099 .60 0 .00 0.00 0 .00 0.00 0.00 0.00 0 .00 0 .00 0 .00 0.00 0 .00 0 .00 0 .00 194,664 .54 0 .00 0 .00 512,688.01 118,598.82 65,086.60 585,947.08 129,251 .81 1,719,044 .64 44,601.14 1,148.61 79,563 .66 2,783,915 .73 9,313 .75 36,984.00 552,859 .32 700,037.58 13,184,739.96 2,829,407 .00 201,416.97 193,012 .15 240,366.96 496,858.00 24,484,841.79 127,295.00 15,471 .00 960,746 .62 194,664 .54 25,885,621.47 410 • • Riverside C ounty Transportatio n Commission CTRBF 02/17/99 ACTUALS BY FUND 6/30/98 F or Period Ending: 12/31/98 02/17/99 STATE WESTERN WESTERN COUNTY GENERAL FUND WESTERN EASTERN TRANSIT CVAG COUNTY COMMERCIAL COMBINING Description FSP/SAFE COUNTY COUNTY ASSISTANCE CONSTRUCTION CONSTRUCTION PAPER TOTAL Operating Transfers In 0.00 159,075.00 660,798 .00 0.00 0 .00 0.00 0 .00 Operatin g Transfers Out 0. 00 159,075.00 11,325,839.58 3,948,914.04 0.00 45,648.80 1,283,368.39 0.00 819,873.00 Debt Serv ice Is su ance Costs 0.00 0 .00 0.00 0.00 16,762,845 .81 0.00 0.00 0.00 0.00 0 .00 0 .00 Total Other Fin ancin g Sources 0. 00 0 .00 10,665,041.58 3,948,914 .04 0.00 Uses Excess(Deficien cy)of Re venues And Other Financing Sources Over(Unde r)Expenditures And Other Finan cing Uses FUND BALANCE July 1, 1998 FUND BALANCE December 31, 1998 1,766,039.34 78,131. 49 2,604,334.21 247,475.52 742,272 .12 45 ,648 .80 1,283,368.39 0 .00 15,942,972 .81 (554,581.58) (1,353,708.86) (152,854.11) 3,377,108.13 3,859,266.24 2,459,243.12 20,611,011 .33 12,869,417.21 2,604,573 .32 9,867,747.69 39,716,130 .87 3,655,442 .77 95,642,832.55 5,625,305.58 2,537,374.61 23,215,345.54 13,116,892.73 3,346,845 .44 9,313,166.11 38,362,422 .01 3,502,588.66 99,019,940 .68 RCTC MEA SURE A HIGHWAY/RA IL PROJECTS QUARTERLY BUDGET REPORT PERIO D ENDING DECEMBER 31, 1998 CO MMISSION CO NTRACTU RAL % COMMITED EXPEND ITURE FOR EX PENDITU RES/P AYMENT PROJECT AU THO RIZED CO MMITMENTS AG AINST AU TH. QUARTER ENDING MAD E TO D ATE THRU D ESCR IP TION ALLOC ATION TO DATE ALLOCATION DECEMBER 31,1998 DECEMBER 31,1998 CIT Y OF CO RONA - (Loan) CITY OF PERR IS - (L oan) CITY OF MU RR IETTA - (L oan) CITY OF SAN JACINTO - (Loan) CITY OF CAN YON LAK E - (Loan) CITY OF TE MECULA - (Loan) CITY OF NO RCO - (Loan) ROUTE 60 ROUTE 74 ROUTE 79 R OUTE 86 ROU TE 111 PRO JECTS ROU TE 91 I-215 PROJECTS INTERCHA NG E IMPROV.PRO GRAM PROJECT MANA GEMENT SERVIC ES PR OGR AM PLAN & SVC S. PARK -N -RID E 6 INCENT.PROG. C OMMU TER RAIL $5,212,623 $1,936,419 $17,000,000 $1,324,500 $1,600,000 $5,094,027 $2,139,067 $3,878,992 $12,283,914 $36,448,998 $20,115,078 $15,933,909 $18,767,858 $41,244,832 $10,632,008 $14,901,959 $8,408,890 $12,167,798 $105,190,412 TOTALS $334,281,284 NUMBER OF INVO ICES PRO CESSED FOR QUARTER NUMBER OF INVOICES PAID FOR QU ARTER $5,212,623 $1,936,419 $1,377,000 $1,324,500 $1,600,000 $5,094,027 $2,139,067 $3,451,641 $12,283,914 $36,365,998 $18,852,554 $15,933,909 $18,485,807 $40,396,501 $10,586,008 $14,758,959 $8,408,890 $12,167,798 $104,690,412 $315,066,027 997 691 100.0% 100.0% 8.1% 100.0% 100. 0% 100.0% 100.0% 89.0$ 100.0% 99.8% 93. 7% 100.0% 98.5% 97 .9% 99.6% 99.0% 100 .0% 100.0% 99 .5% 94.3% (L oan Pd in full) $0 $0 $1,834 $0 $444,367 $499,182 $0 $2,241 $239,041 $0 $696,359 $1,127,661 $3,010,685 $1,035,600 $186 ,953 $1,377,000 $127,875 $233,773 $491,807 $206,518 $2,883,714 $7,557,369 $35,906,065 $18,561,828 $8,616,804 $14,332,583 $40,217,340 $10,234,454 $13,661,338 $6,173,877 $9,702,994 $102,639,165 $274,147,057 • • • AGENDA ITEM 10 • s • • RIVERSIDE COUNTY TRANSPORTA TION COMMISSION DATE: February 22, 1999 TO: Budget and Implementation Committee FROM: Dean Martin, Chief Financial Officer SUBJECT: Revised Budget for Fiscal Year Ending June 30, 1999 Attached is a spreadsheet showing changes to the budget by major line item. Along with the spreadsheet are notes explaining the various changes. Department budgets were still being reconciled and will be presented at the meeting. STAFF RECOMMENDATION: Approved the revisions to the Commission's budget for fiscal year ending June 30, 1999. O0OO5 RIVERSIDE COUNTY TRANSPORTA TION COMMISSION DATE: February 22, 1999 TO: Budget and Implementation Committee FROM: Dean Martin, Chief Financial Officer SUBJECT: Revised Budget for Fiscal Year Ending June 30, 1999 AMENDED ITEM NO. 10 Attached is a spreadsheet showing changes to the budget by major line item. Along with the spreadsheet are notes explaining the various changes. Department budgets along with brief explanations are also included for review. The list of Recurring Contracts included in the Revised Budget represents consultants who have provided annual ongoing services to the Commission. Many of these contracts have either been renewed after an RFP process, currently have an RFP in progress, or plans are in place to issue an RFP. As the report indicates most of the contract amounts have not changed. Those requiring amendment which increase the contract amount have been highlighted. Those are the only items which require Commission action. The remaining contracts are listed for information purposes only. STAFF RECOMMENDATION: 1. Approved the revisions to the Commission's budget for fiscal year ending June 30, 1999. 2. Authorize the Executive Director to execute amendments to the contracts for financial and investment advisory services in an amount not to exceed the indicated contract value, subject to review by legal counsel. LINE ITEM BUDGET A 1 RIVERSIDE COUNTY TRANSPORTATION COMMISSION Budget Comparative By Line Item FISCAL YEAR 1998/99 SOURCES OF REVENUE Total Revenues have remained virtually unchanged from the original 1999 Budget. Although sales tax revenues have been increased by 4.4%(based on strong actual revenues year to date), nearly an identical amount has been reduced from state and federal reimbursements. Federal Transit Administration(FTA) revenues expected for construction of rail overcrossings at West Corona and La Sierra have been eliminated from the budget and will become part of the fiscal year 2000 budget. Debt proceeds. The small amount of $350,000 shown as debt proceeds represent the expected reimbursement from the developer for the Wasson Canyon Road project on Route 74. The remaining $550,000 of the loan will be received as expenditures occur in fiscal year 2000. EXPENDITURES Personnel salary and fringe benefits. The modest increase of 4.3% reflects an increase in staffing and starting salaries for four positions. New positions approved and filled since the beginning of the fiscal year include one additional secretary and an administrative assistant. Two other positions, a staff analyst and a program manager were hired(based on Commission approval) at higher levels than originally anticipated in the budget. Services and supplies/Capital Outlay. Administrative costs have been increased $34,065 principally as result of the costs of recruitment to fill new and existing vacant positions. To offset that cost fixed asset acquisitions have been reduced by $45,000. The net reduction in the Commission's non personnel overhead amounts to 1.1%. Professional costs General legal services. Staff significantly reduced expenditures for legal costs in the original budget. The reduction primarily related to decreased project right of way litigation and eminent domain activities for route 79 Lamb Canyon, as well as instituting more departmental accountability. Special legal services. This category is budgeted for the Commission's bond counsel. Since the Commission has no near term planed debt issuances, the role of bond counsel is simply for on call maintenance. Financial services. The increase reflects the prominent role the Commission's financial advisors will play in the development of the Strategic Plan. The contract is budgeted to increase by $75,000 to cover activities through the end of the fiscal year for completion of Phase I and development of Phase II. A 2 Audit services. The original budget anticipated that a number jurisdictions would assume the expense for their own audits. However, only two agencies elected to control their audits and bear the expense for those audits. Other Professional Services. The increase in other professional services reflects the Commission's authorization of an increase in the Executive Director's single signature authority. The revised budget anticipates utilizing up to $250,000 by fiscal year end(although the new aggregate limit is $500,000). A portion of this amount represents a reclass from Projects- General(Acct. #81000). Projects Projects -General. The reduction of $140,000 is simply a reclass of single signature authorization amounts to Professional Services-Other(Acct. #65500). Highway & rail engineering. Expense cost reduction on engineering for Pedley security surveillance system was awarded at significantly under the engineer's estimate. Highway & rail construction. Monroe to Rubidoux project($1.1 million) in the Coachella Valley has been moved to FY2000 pending completion of engineering and resolution of right of way activities. Construction of La Sierra and West Corona overcrossings are expected to begin in June 1999. Much of the cost of construction($2.5 million) will occur in FY2000. Track improvements for the San Jacinto Branchline ($500,000) is undergoing engineering assessments and construction has been moved to FY2000. The City of Palm Desert has 3 projects which have fallen behind schedule as follows: The Portola ($330,000) and San Pablo($379,000) projects are now under construction but will now be completed in FY2000. The Monterey project($942,000) on Route 111 in Palm Desert will be finishing design by June, so the construction has been moved to FY2000. Highway & rail right of way. The original budget for Route 74 assumed $4.1 million for right of way acquisition. Approximately $3.4 million will now be completed in FY2000. A number of issues came to light subsequent to the original budget adoption such as community concerns, Caltrans funding commitment. Right of way appraisals are underway and acquisitions will begin in the next 2-3 months. Highway & rail special studies. The budget amount has been augmented to cover CETAP activities. SCRRA(Metrolink) capital contribution. No changes are anticipated. Historically once SCRRA adopts its budget, there have been no changes. The Commission's contribution to SCRRA is based on the established budget. Any difference between the budget and actuals is reconeiled subsequent to year end. Commuter assistance. Other than minor changes to program line items, the Commuter Assistance Program budget has remained nearly unchanged. Regional transportation. This line item includes the disbursements to the County and cities for A 3 streets and roads. Due to the increased Measure A revenue estimate, the allocation to local jurisdictions would automatically increase. Intergovernmental disbursements. The amount allocated to the Western Riverside Council of Governments was increased by $70,000. State Transit Assistance disbursements. The original budget was an estimate of what amount would be allocated. The actual allocation was completed in August 1998. The budget has been adjusted to the actual allocation made by the Commission. Regional arterial. Prior year expenditures came in less than anticipated, so the budget has been adjusted assuming those amounts will be expended in the current year. Project maintenance. Call box knockdowns, vandalisms, and miscellaneous repairs experience to date has been less than anticipated in the budget. Project operations. Minor increases for radio air time and miscellaneous project supplies. Project towing. Some minor costs were reclassed to Project Operations and there was a small downward adjustment in the contract amount for the two operators based on actual negotiated contracts. Contingency. Since the total expenditures have minimally declined, the budget contingency has remained unchanged. FUND BALANCE Ending fund balance is anticipated to decline 11.2%, and will be comprised of the following: Western County Eastern County Non Measure A Other Total Reserved: Highways/Rail $20,135,082 $5,378,554 $25,513,636 Special 5,369,491 5,369,491 Streets & Roads 39,455 39,455 Transit 2,994,175 1,073,572 4,067,747 Debt Service 15,915,062 7,912,425 23,827,487 Loans Receivable 14,774,221 14,774,221 Prepaid Rent 1,026,375 1,026,375 Designated: Motorist Assistance 2,539,148 2,539,148 Contingency 3,718,328 1,670,628 5,388,956 Unreserved $60,938,559 2, 298, 257 2,298,257 $12,001,062 $5,533,323 $3,371,829 $84,844,773 A 4 Riverside County Transportation Commission BUDGET COMPARATIVE -BY LINE ITEM 1998-1999 Revised Budget 1995/96 1996/97 Actuals Actuals Line item 1997/98 1998/99 Actuals Budget 1998199 Revised Budget Dollar Percent Changes Change SOURCES OF REVENUE: Operating Revenues: Sales Tax Revenues Sales Tax TDA Planning & Admin Sales Tax TDA Transit Allocation STA Transit Allocation SAFE Fees Reimbursements: Other Revenue Investment Income Total Operating Revenues Debt Proceeds Total Sources of Funds EXPENDITURES: Personnel Salary & Frin 55,413,939 1,247,000 4,453,800 1,670,743 1,031,117 7,754,264 2,727,645 7,260,013 57, 888,149 1,298,000 3,800,185 1,812,380 1,033,019 5,470,049 2,724,75/ 6,030,161 63,496,222 1,197,000 4,124,434 1,982,721 1,060,791 9,539,357 2,546,996 5,004,028 65, 625, 000 1,294,500 4,350,000 2,360,478 1,040,000 10, 086, 920 2,993,972 2,937,875 68, 500, 000 2,875,000 4.4% 1,294,500 4,153,679 (196,321) -4.5% 2,360,478 1,065,000 25,000 2.4% 7,085,420 (3,001,500) -29.8% 3,217,511 223,539 7.5% 3,060,565 122,690 4.2% 81,558,521 80,056,694 88,951,549 90,688,745 90,737,153 48,408 0.1% 80,575,877 61,429,211 350,000 350,000 100.0% 162,134,398 80,056,694 150,380,760 90,688,745 91,087,153 398,408 0.4% 1,444,804 Services and Supplies 613,958 90000 Capital Outlay-Equipme 144,538 Professional Costs: 65100 65200 65300 65400 65500 General Legal Services Special Legal Services Financial Services Audit Services Other Professional Sery Total Professional Costs Projects: 81000 Projects -General 81100 Highway & Rail Enginee 81300 Highway & Rail Constru 81400 Highway & Rail ROW 81500 Highway & Rail Special 81600 SCRRA Capital Contrib 85000 Commuter Assistance 86000 Special Projects 86100 Regional Transportatio 86200 LTF Disbursements 86300 STA Disbursements 86400 Regional Arterial 87000 Project Maintenance 87100 Project Operations 87200 Project Towing Total Projects Costs 464,326 14,295 104,649 329,456 414,529 1,552,075 734,557 53,677 1,018,544 49,697 74,864 285,404 425,208 1,647,688 777,435 306,660 394,635 20,529 54,834 388,939 531,388 1,861,106 897,895 166,200 325,000 25,000 97,500 290,000 649,920 1,941,600 80,494 4.3% 931,960 34,065 3.8% 98,221 (67,979) -40.9% 325,000 10,000 170,000 385,600 867,920 (15, 000) -60.0% 72,500 74.4% 95,600 33.0% 218,000 33.5% 1,327,255 1,853,717 1,390,325 1,387,420 1,758,520 371,100 26.7% 1,404,223 1,913,874 15,097,514 1,950,209 347,036 1,377,400 999,108 26,459,937 351,215 1,026,000 24,724,468 447,773 657,585 514,558 77, 270, 900 1,011,991 1,651,448 11,570,938 6,182,270 511,729 1,234,386 978,937 27,630,703 305,095 1,269,583 23,113,312 557,317 798,163 545,312 77,361,184 1,859,105 1,747,979 11,513,488 1,579,141 353,542 1,316,099 1,141,427 30,466,257 309,000 1,535,401 21,035,529 1,064,975 756,036 523,458 75,201,437 1,833,900 2,231,969 15,413,525 4,568,656 235,000 1,150,000 1,391,920 31,079,157 327,295 2,746,194 7,895,150 597,294 1,106,127 679,628 71,255,815 1,693,900 (140, 000) -7.6% 2,172,012 (59,957) -2.7% 9,770,550 (5,642,975) -36.6% 1,300,540 (3,268,116) -71.5% 350,000 115,000 48.9% 1,150, 000 1,378,920 (13,000) -0.9% 32,495,176 397,295 2,186,116 10, 068, 505 550,094 1,129, 787 657,800 65,300, 695 1,416,019 4.6% 70,000 21.4% (560, 078) -20.4% 2,173,355 27.5% (47, 200) -7.9% 23,660 2.1% (21, 828) -3.2% (5,955,120) -8.4% A 5 iverside County Transpo atron omm►ssion BUDGET COMPARATIVE -BYLINE ITEM 1998-1999 Revised Budget 1995/96 1996/97 Actuals Actuals Line item Expenditures before distributions and operating transfers 97000 Operating Transfer Total Expenditures Excess(Deficiency) of Revenues Over Expenditures Contingency Excess(Deficiency) of Revenues Over Expenditures After Cont Fund Balance, July 1 Ending Fund Balance 1997/98 Actuals 1998199 1998/99 Revised Budget Budget Dollar Percent Changes Change 80,801,455 90,226,547 171,028,002 81,555,210 25, 242, 712 106,797,922 79,323,545 75,343,579 154,667,124 75,568,436 30,378,913 105,947,349 70, 030, 996 30,352,217 100,383,213 (5,537,440) (26,696) -0.1% (5,564,136) -5.3% -7.3% (8,893,604) (26,741,228) (4,286,364) (15,258,604) (9,296,060) 5,962,544 -39.1 (1,502,000) (1,502,000) (8,893,604) (26,741,228) (4,286,364) (16,760,604) (10,798,060) 5,962,544 -35.6% 136,515,170 126,670,423 99,929,195 81,381,561 95,642,831 14,261,270 17.5% 127,621,566 99,929,195 95,642,831 64,620,957 84,844,771 20,223,814 31.3% DEPARTMENT BUDGETS A 6 Riverside County Transportation Commission ADMINISTRATION 1998-1999 Revised Budget 1998/99 1995/96 1996197 1997/98 1998/99 Revised Dollar Percent Actuals Actuals Actuals Budget Budget Changes Changes Personnel Salary & Fringe: Executive Director 146,327 160,083 423,205 180,876 190,098 9,222 (4) 5.1% Director-Planning/Programming 9,918 10,654 12,081 * Director--Govemmental/Legislative 111,576 119,860 23,335 80,677 (80,677) (1) -100.0% Director --Regional lssues/Communic 33,193 35,658 12,873 34,099 102,203 68,104 (2) 199.7% Clerk of the Commission 110,568 118,777 137,599 141,034 163,427 22,393 (4) 15.9% Public Information Officer 34,472 (3) Total Personnel Salary & Fringe Ben 411,582 445,032 609,094 436,686 490,201 53,515 12.3% OperationslOverhead (73100 thru 73 108,005 210,626 145,769 157,960 158,114 154 0.1% Professional Costs: 65100 General Legal Services 92,070 95,316 101,834 85,000 79,000 (6,000) (5) -7.1% 65500 Other Professional Service 92,100 122,047 206,187 139,139 226,020 86,881 (6) 62.4% Total Professional Costs 184,170 217,363 308,021 224,139 305,020 80,881 36.1% Capital Outlay 90000 Capital Outlay -Equipment 49,218 41,600 130,580 137,700 92,700 (45,000) (7) -32.7% Total Administration 752,975 914,621 1,193,464 956,485 1,046,035 89,550 9.4% Notes (1) (2) (3) (4) (5) (6) (7) Reclassification between personnel salary and fringe benefits and professional services. Position is an employee of SANBAG and costs are shared with SANBAG. Created subsequent to adoption of original budget. Approved as new position by Commission action of September 9, 1998. Is expected to be filled in April 1999. Reallocation of Administrative Support Staff. Reallocated to other Department/Programs See Note 1 Original budget anticipated office modifications and furniture purchases to accommodate a larger staff. That has been placed on hold while various options for housing staff are being explored. A 7 Riverside County Transportation Commission FINANCE AND ACCOUNTING 1998-1999 Revised Budget 1998/99 1995/96 1996/97 1997/98 1998/99 Revised Dollar Percent Actuals Actuals Actuals Budget Budget Changes Changes * Personnel Salary & Fringe: Chief FinancialOfficer 103,659 111,355 136,339 128,251 139,536 11,385 (1) 8.9% Program Manager I 39,224 42,136 2,223 Accounting Supervisor 58,417 90,109 (90,109) (2) * Total Personnel Salary & Fringe Ben 142,883 153,491 196,979 218,360 139,636 (78,723) -36.1% OperationslOverhead 41,664 72,643 60,737 60,933 48,648 (12,285) -20.2% Professional Costs: 65100 General Legal Services 17,975 5,633 8,770 12,500 10,000 (2,500) (3) -20.0% 65200 Special Legal Services 14,295 49,697 20,529 25,000 10,000 (15,000)(4) -60.0% 65300 Financial Services 104,649 74,864 54,834 97,500 170,000 72,500 (5) 74.4% 65400 Audit Services 302,956 285,404 366,015 220,000 315,600 95,600, (6) 43.5% 65500 Other Professional Services 8,394 Total Professional Costs 439,875 415,598 458,542 355,000 505,600 150,600 42.4% Total Measure A Project Financing 624,422 641,732 716,258 634,293 693,884 59,592 9.4% Notes (1) (2) (3) (4) (5) (6) Reallocation of Administrative Support Staff. Position now included in Administrative Support Services. Reallocated to other departments/ programs. Bond counsel supports bond deals and debt administrative activities. No bond deals are pending and the level of support for debt maintenance is being reduced. Contract for financial advisory services will be increased (subject to Commission approval) to support Strategic Plan development and completion. Original budget assumed a 20% reduction in funding auditees. However, nearly all jurisdictions elected to have the Commission continue conducting and paying for the audits. A 8 Riverside County Transportation Commission CAPITAL PROJECT DEVELOPMENT AND DELIVERY 1998-1999 Revised Budget 1998199 1995/96 1996/97 1997/98 1998/99 Revised Dollar Percent Actuals Actuals Actuals Budget Budget Changes Changes, Personnel Salary & Fringe: Deputy Executive Director 128,328 137,858 132,581 160,606 167,5:19 6,993 (1) 4.4% Program Manager ll 43,187 46,393 52,769 7,863 (44,906) (2) -85.1% Staff Analyst II 24,688 26,522 21,098 29,345 8,248 39.1 Staff Analyst l 4,110 4,416 Program Management Support 90,670 97,402 17,104 12,879 16,820 3,940 (1) 30.6% • Total Personnel Salary & Fringe Ben 290,983 312,591 149,685 247,352 221,626 (25,726) -10.4% OperationslOverhead (73100 thru 73 244,265 147,938 242,948 357,228 288,745 (68,483) -19.2% Projects: 81000 Projects -General 1,404,223 1,011,991 1,859,407 1,833,900 1,693,900 (140,000) (3) -7.6% 81100 Highway & Rail Engineering 1,913,874 1,651,449 1,747,979 2,231,969 2,172,012 (59,957) (3) -2.7% 81300 Highway & Rail Constructio 15,097,514 11,570,939 11,513,488 15,413,525 9,770,550 (5,642,975) (3) -36.6% 81400 Highway & Rail ROW 1,948,960 6,182,269 1,579,194 4,568,656 1,300,540 (3,268,116) (3) -71.5% 81500 Highway & Rail Special Stu 53,126 174,793 190,123 25,000 25,000 (3) 100.0% 81600 SCRRA Capital Contributio 1,377,400 1,234,386 1,316,099 1,150,000 1,150,000 86100 Regional Transportation 21,310,989 22,240,190 24,382,462 25,163,696 26,579,715 1,416,019 (3) 5.6% 86400 Regional Arterial 24,724,468 23,113,312 21,035,529 7,895,150 10,068,505 2,173,355 (3) 27.5% Total Projects 67,830,554 67,179,329 63,624,281 58,256,896 52,760,222 (5,496,674) (3) -9.4% Professional Costs: 65100 General Legal Services 195,041 751,072 183,671 127,500 161,500 34,000 (4) 26.7% 65400 Audit Services 26,500 17,924 50,000 50,000 65500 Other Professional Service 76,222 27,258 18,538 127,500 242,500 115,000 (3) 90.2% Total Professional Costs 297,763 778,330 220,133 305,000 454,000 149,000 48.9% Total Measure A Project Developmen 68,663,565 68,418,188 64,237,047 59,166,476 53,724,593 (5,441,883) -9.2% Salaries shown include allocated support staff Notes (1) Support staff now includes Executive and Administrative Assistants and the Accounting Supervisor. (2) Program Manager working primarily on STIP and CETAP activities. Most of budgeted hours have been moved to Transportation Planning and Programming. (3) See Notes to line Item budget. (4) Budget increased based on actuals to date. Amount reallocated from other program areas. A 9 Riverside County Transportation Commission SPECIAL TRANSPORTATION 1998-1999 Revised Budget 1998/99 1995/96 1996/97 1997/98 1998/99 Revised Dollar Percent Actuals Actuals Actuals Budget Budget Changes Changes Personnel Salary & Fringe: Director-Planning/Programming Director -Regional lssues/Communic 9,291 9,291 (1) 100.0% Program Manager II(includes 2) 113,093 118,593 141,116 147,515 155,445 7,930 (2) 5.4% Staff Analyst 11 20,550 22,075 63,817 45,415 (18,402) (3) -28.8% " Total Personnel Salary & Fringe Ben 138,602 145,995 141,116 211,331 210,151 (1,180) -0.6% OperationslOverhead 46,851 69,096 64,624 68,515 76,960 8,445 12.3% Projects: 4,959 5,327 85000 Commuter Assistance 999,108 978,936 1,141,427 1,391,920 1,378,920 (13,000) -0.9% 86100 Regional Transportation 2,722,549 2,703,313 3,567,642 3,052,561 3,052,561 87200 Project Towing Total Projects 3,721,657 3,682,249 4,709,069 4,444,481 4,431,481 (13,000) -0.3% Professional Costs: 65100 General Legal Services 40,856 15,820 16,686 16,000 16,000 65400 Audit Services 5,000 20,000 20,000 Total Professional Costs 40,856 15,820 21,686 36,000 36,000 Total Measure A Special Transportat 3,947,966 3,913,160 4,936,495 4,760,327 4,754,592 * Includes allocated support staff (5,735) -0.1% Notes (1) Hours budgeted to cover transition assistance from Marilyn Williams as commuter assistance program is transferred to Tanya Love. (2) Reallocation based on increases to Administrative support pool. (3) Original budget assumed that Staff Analyst would divide budget hours equally between three program areas - commuter assistance, specialized transit and rail. It has since been determined that most of the budgeted hours should be allocated to rail. A 10 Riverside County Transportation Commission TRANSPORTATION PLANNING AND PROGRAMMING 1998-1999 Revised Budget 1998/99 1995/96 1996/97 1997/98 1998/99 Revised Dollar Percent Actuals Actuals Actuals Budget Budget Changes Changes Personnel Salary & Fringe: Director-Planning/Programming 67,566 72,583 85,740 133,060 143,973 10,913 8.2% Director--Govemmental/Legislative 12,902 Program Managers 11 86,448 92,866 89,331 175,018 258,961 83,943 48.0% Staff Analyst II 56,109 60,275 48,444 47,949 66,694 18,745 39.1% Staff Analyst 1 28,396 30,505 * Total Personnel Salary & Fringe Ben 238,519 256,229 236,417 356,028 469,628 113,600 (1) 31.9% OperationslOverhead (73100 thru 73 83,329 121,266 124,876 121,865 186,644 64,779 53.2% Projects: 81500 Highway & Rail Special Stu 38,752 235,000 325,000 90,000 (1) 38.3% 85000 Support Services 2,379 86200 LTFDisbursements 351,215 305,095 309,000 327,295 397,295 70,000 (2) 21.4% 86300 STA Disbursements 1,026,000 1,269,583 1,535,401 2,746,194 2,186,116 (560,078)(3) -20.4% Total Projects 1,377,215 1,574,678 1,885,532 3,308,489 2,908,411 (400,078) -12.1% Professional Costs: 65100 General Legal Services 7,866 8,039 5,142 20,000 10,000 (10,000) (4) -50.0% 65500 Other Professional Service 54,707 122,382 142,801 97,500 172,500 75,000 (5) 76.9% Total Professional Costs 62,573 130,421 147,943 117,500 182,500 65,000 55.3% Total Transportation Planning and P 1,761,636 2,082,594 2,394,768 3,903,882 3,747,183 (156,699) -4.0% * Includes allocated support staff Notes (1) Increases principally attributable to CETAP activities. (2) Planning allocation to WRCOG increased based on Commission action. (3) Adjusted to reflect actual Commission allocation from the August 1998 meeting. (4) Reallocated to other program areas. (5) Adjusted upward due to set aside for Executive Director's single signature authority. A 11 Riverside County Transportation Commission RAIL TRANSPORTATION PROGRAM 1998-1999 Revised Budget 1998/99 1995/96 1996/97 1997/98 1998/99 Revised Dollar Percent Actuals Actuals Actuals Budget Budget Changes Changes Personnel Salary & Fringe: Director-Planning/Programming Program Manager 11 Property Agent Staff Analyst 1l 9,298 9,988 765 37,096 39,851 110,486 113,416 149,393 35,977 (1) 31.7% 12,398 49,343 53,539 4,196 8.5% 31,908 56,769 24,860 (2) 100.0% * Total Personnel Salary & Fringe Ben 46,394 49,839 123,648 194,667 259,700 65,033 33.4% OperationslOverhead (73100 thru 73 21,457 23,589 53,449 31,380 109,221 77,841 248.1% Projects: 86100 Regional Transportation 2,426,400 2,687,200 2,516,101 2,862,900 2,862,900 87000 Project Maintenance 127,514 233,848 689,673 225,750 225,750 87100 Project Operations 262,606 410,681 416,035 667,537 667,537 Total Projects 2,816,520 3,331,729 3,621,809 3,756,187 3,756,187 Professional Costs: 65100 General Legal Services 77,280 117,725 50,633 40,000 30,000 (10,000) (3) -25.0% 65500 Other Professional Service 139,457 82,457 79,383 140,000 90,000 (50,000)(4) -35.7% Total Professional Costs 216,737 200,182 130,016 180,000 120,000 (60,000) -33.3% Total Commuter Rail * Includes allocated support staff 3,101,108 3,605,339 3,928,922 4,162,234 4,245,108 82,874 2.0% Notes (1) Rail Program Manager budgeted hours transfer from the Capital Program. More resources being allocated to non -capital activities. (2) With growth in various rail programs, new Staff Analyst 11 has considerable number of budgeted hours in this program area. (3) Reallocated to other program areas. Reduced amount supported by actuals to date. (4) Original budget includes $50,000 as rail program operating contingency. Amount eliminated in revised budget as any unplanned operating cost can be covered by Executive Director's single signature authority. A 12 Riverside County Transportation Commission MOTORIST ASSISTANCE 19984999 Revised Budget 1998/99 1995/96 1996/97 1997/98 1998/99 Revised Dollar Percent Actuals Actuals Actuals Budget Budget Changes Change Personnel Salary & Fringe: Assistant Director Program Manager !! Staff Analyst l 18,596 19,977 24,058 11,222 8,469 (2,753) -24.5% 49,029 52,670 88,321 120,087 71,196 (48,892)(1) -40.7% 14,198 15,252 ' Total Personnel Salary & Fringe Ben 81,823 87,899 112,378 131,309 79,665 (51,645) -39.3% OperationslOverhead (73100 thru 73 30,656 41,599 36,442 44,834 30,299 (14,534) -324% Projects: 81500 Highway & Rail Special Stu 111,915 336,936 124,666 85000 Support Services 689 87000 Project Maintenance 291,295 298,508 345,680 371,544 324,344 (47,200) (2) -12.7% 87100 Project Operations 384,570 374,016 327,231 363,590 387,250 23,660 (3) 6.5% 87200 Project Towing 514,558 545,312 523,458 679,628 657,800 (21,828) (4) -3.2% Total Projects 1,302,338 1,554,772 1,321,724 1,414,762 1,369,394 (45,368) -3.2% Professional Costs: 65100 General Legal Services 19,500 5,078 931 4,000 8,500 4,500 112.5% 65500 Other Professional Service 49,585 49,969 76,085 70,781 61,900 (8,881) -12.5% Total Professional Costs 69,085 55,047 77,016 74,781 70,400 (4,381) -5.9% Capital Outlay 90000 Capital Outlay -Equipment 95,319 12,077 176,080 28,500 5,521 (22,979) (5) -80.6% Total Motorist Assistance 1,579,221 * Salaries shown include allocated support staff 1,751,394 1,723,640 1,694,186 1,555,279 (138,907) -8.2% Notes (1) Program Manager 11 budgeted hours reallocated to Transportation Planning and Programming. Position now responsible for public operator transit activities. (2) Reduced based on actual experience to date for call box knockdowns, vandalisms, and corrective maintenance. (3) Increased by micsellaneous support costs transferred from Project Towing. Additionally, air time and access charges increased based on actuals to date. (4) Towing costs reduced based on actual contract values. Miscellaneous support costs for Freeway Service. Patrol reclassified as operations. (5) Costs to purchase radio communications equipment was eliminated as the purchases were accelerated into FY 98. A 13 Riverside County Transportation Commission PROPERTY MANAGEMENT 1998-1999 Revised Budget 1998/99 1995/96 1996/97 1997/98 1998/99 Revised Dollar Percent Actuals Actuals Actuals Budget Budget Changes Changes Personnel Salary & Fringe: Executive Director 8,607 9,246 8,239 Chief Financial Officer 12,233 13,140 8,509 16,031 17,455 1,423 8.9% Property Agent 71,939 77,281 61,624 49,343 53,539 4,196 8.5% Director-Planning/Programming 1,240 1,332 Total Personnel Salary & Fringe Ben 94,019 100,999 78,372 65,374 70,993 5,619 8.6% OperationslOverhead 37,731 47,800 48,590 55,180 33,329 (21,851) -39.6% Projects: 81400 Highway & Rail ROW 1,249 85000 Support Services 120 87000 Project Maintenance 28,964 24,961 29,320 87100 Project Operations 10,409 13,466 9,582 75,000 75,000 Total Projects 40,622 38,427 39,022 75,000 75,000 Professional Costs: 65100 General Legal Services 13,738 19,861 26,968 65500 Other Professional Service 2,457 21,095 Total Professional Costs Total Property Management 20,000 10,000 (10,000) (1) -50.0% 75,000 75,000 16,195 40,956 26,968 95,000 85,000 (10,000) -10.5% 188,567 228,182 192,952 * Salaries shown include allocated support staff 290,554 264,322 (26,232) -9.0% Notes (1) Costs reallocated to other program areas. SCHEDULE OF RECURRING CONTRACTS FISCAL YEAR ENDING JUNE 30, 1999 A 14 RIVERSIDE COUNTY TRANSPORTATION COMMISSION SCHEDULE OF RECURRING CONTRACTS FOR FISCAL YEAR ENDED JUNE 30, 1999 Consultant Bechtel Corp. Best,Best, & Krieger Charles Bell/Boyea Capital Mkts Smith & Kempton Ernst & Young Cliff Madison Inland Transportation Services' O'Melveny & Myers Schiermeyer Consulting Valley Planning & Research Tele Trans Tek Services Cis LeRoy Public Financial Management GeoGraphics Digital Advantage Type of Service Project & Consultant Management General Legal Services Financial Advisory Legislative Advocate/Program Support Audit & Consulting Services Federal Lobbyist Commuter Assistance Program Mgmt. Bond Counsel Rail Consultant Planning & Programming Call Box/Traf. Counter Programming Services Investment/Advisory/Mgmt Services Graphic Design Services Computer Programing Services Original Revised Dollar Percent 98/99 Budget 98/99 Budget Change Change $1,600,000 325,000 75,000 47,610 325,000 47,610 924,995 25,000 90,000 80,000 47,500 35,000 10,000 329,125 20,000 $1,600,000 325,000 150,000 50,610 325,000 47,610 924,995 10,000 90,000 80,000 47,500 35,000 25,000 329,125 20,000 $0 0.0% $0 0.0% $75,000 (1) 100.0% $3,000 (2) 6.3% $0 (3) 0.0% $0 0.0% $0 (4) 0.0% ($15,000) -60.0% $0 0.0% $0 0.0% $0 0.0% $0 0.0% $15,000 (5) 150.0% $0 0.0% $0 0.0% $3,981,840 $4,059,840 $78,000 'Note: Does not include amounts for the SAN BAG program. (1) The increase is to cover work on the draft of Stratigic Plan through end of Fiscal Year. (2) To increase retainer fees per Commission action dated December 9, 1998. Actual Contract was extended through September, 1999. (3) Contract for Fiscal Year 1999 audit services to be paid in Fiscal Year 2000, will be awarded upon completion of an RFP solicitation currently in progress. (4) This contract is funded by Measure A and a number of Federal and State funding soucres. An RFP will be issued for renewal of these services prior to fiscal year end. (5) Consultant was selected as the Commission Investment Advisior for a period of five years after an RFP process. 2.0% • RCTC REVISED BUDGET � FISCAL YEAR ENDING JUNE 30, 1999 0000513 • • • RIVERSIDE COUNTY TRANSPORTATION COMMISSION Budget Comparative By Line Item FISCAL YEAR 1998/99 SOURCES OF REVENUE Total Revenues have remained virtually unchanged from the original 1999 Budget. Although sales tax revenues have been increased by 4.4%(based on strong actual revenues year to date), nearly an identical amount has been reduced from state and federal reimbursements. Federal Transit Administration(FTA) revenues expected for construction of rail overcrossings at West Corona and La Sierra have been eliminated from the budget and will become part of the fiscal year 2000 budget. Debt proceeds. The small amount of $350,000 shown as debt proceeds represent the expected reimbursement from the developer for the Wasson Canyon Road project on Route 74. The remaining $550,000 of the loan will be received as expenditures occur in fiscal year 2000. EXPENDITURES Personnel salary and fringe benefits. The modest increase of 4.3% reflects an increase in staffing and starting salaries for four positions. New positions approved and filled since the beginning of the fiscal year include one additional secretary and an administrative assistant. Two other positions, a staff analyst and a program manager were hired(based on Commission approval) at higher levels than originally anticipated in the budget. Services and supplies/Capital Outlay. Administrative costs have been increased $34,065 principally as result of the costs of recruitment to fill new and existing vacant positions. To offset that cost fixed asset acquisitions have been reduced by $45,000. The net reduction in the Commission's non personnel overhead amounts to 1.1%. Professional costs General legal services. Staff significantly reduced expenditures for legal costs in the original budget. The reduction primarily related to decreased project right of way litigation and eminent domain activities for route 79 Lamb Canyon, as well as instituting more departmental accountability. Special legal services. This category is budgeted for the Commission's bond counsel. Since the Commission has no near term planed debt issuances, the role of bond counsel is simply for on call maintenance. Financial services. The increase reflects the prominent role the Commission's financial advisors will play in the development of the Strategic Plan. The contract is budgeted to increase by $75,000 to cover activities through the end of the fiscal year for completion of Phase I and development of Phase II. 000057 Audit services. The original budget anticipated that a number jurisdictions would assume the expense for their own audits. However, only two agencies elected to control their audits and bear the expense for those audits. Other Professional Services. The increase in other professional services reflects the Commission's authorization of an increase in the Executive Director's single signature authority. The revised budget anticipates utilizing up to $250,000 by fiscal year end(although the new aggregate limit is $500,000). A portion of this amount represents a reclass from Projects- General(Acct. #81000). Projects Projects --General. The reduction of $140,000 is simply a reclass of single signature authorization amounts to Professional Services-Other(Acct. #65500). Highway & rail engineering. Expense cost reduction on engineering for Pedley security surveillance system was awarded at significantly under the engineer's estimate. Highway & rail construction. Monroe to Rubidoux project($1.1 million) in the Coachella Valley has been moved to FY2000 pending completion of engineering and resolution of right of way activities. Construction of La Sierra and West Corona overcrossings are expected to begin in June 1999. Much of the cost of construction($2.5 million) will occur in FY2000. Track improvements for the San Jacinto Branchline ($500,000) is undergoing engineering assessments and construction has been moved to FY2000. The City of Palm Desert has 3 projects which have fallen behind schedule as follows: The Portola ($330,000) and San Pablo($379,000) projects are now under construction but will now be completed in FY2000. The Monterey project($942,000) on Route 111 in Palm Desert will be finishing design by June, so the construction has been moved to FY2000. Highway & rail right of way. The original budget for Route 74 assumed $4.1 million for right of way acquisition. Approximately $3.4 million will now be completed in FY2000. A number of issues came to light subsequent to the original budget adoption such as community concerns, Caltrans funding commitment. Right of way appraisals are underway and acquisitions will begin in the next 2-3 months. Highway & rail special studies. The budget amount has been augmented to cover CETAP activities. SCRRA(Metrolink) capital contribution. No changes are anticipated. Historically once SCRRA adopts its budget, there have been no changes. The Commission's contribution to SCRRA is based on the established budget. Any difference between the budget and actuals is reconeiled subsequent to year end. Commuter assistance. Other than minor changes to program line items, the Commuter Assistance Program budget has remained nearly unchanged. Regional transportation. This line item includes the disbursements to the County and cities for 00005 streets and roads. Due to the increased Measure A revenue estimate, the allocation to local jurisdictions would automatically increase. • • • Intergovernmental disbursements. The amount allocated to the Western Riverside Council of Governments was increased by $70,000. State Transit Assistance disbursements. The original budget was an estimate of what amount would be allocated. The actual allocation was completed in August 1998. The budget has been adjusted to the actual allocation made by the Commission. Regional arterial. Prior year expenditures came in less than anticipated, so the budget has been adjusted assuming those amounts will be expended in the current year. Project maintenance. Call box knockdowns, vandalisms, and miscellaneous repairs experience to date has been less than anticipated in the budget. Project operations. Minor increases for radio air time and miscellaneous project supplies. Project towing. Some minor costs were reclassed to Project Operations and there was a small downward adjustment in the contract amount for the two operators based on actual negotiated contracts. Contingency. Since the total expenditures have minimally declined, the budget contingency has remained unchanged. FUND BALANCE Ending fund balance is anticipated to decline 11.2%, and will be comprised of the following: Westem County Eastern County Non Measure A Other Total Reserved: Highways/Rail $20,135,082 $5,378,554 $25,513,636 Special 5,369,491 5,369,491 Streets & Roads 39,455 39,455 Transit 2,994,175 1,073,572 4,067,747 Debt Service 15,915,062 7,912,425 23,827,487 Loans Receivable 14,774,221 14,774,221 Prepaid Rent 1,026,375 1,026,375 Designated: Motorist Assistance 2,539,148 2,539,148 Contingency 3,718,328 1,670,628 5,388,956 Unreserved 2, 298, 257 2,298,257 $60,938,559 $12,001,062 $5,533,323 $3,371,829 $84,844,773 000059 Riverside County Transportation Commission BUDGET COMPARATIVE -BYLINE ITEM 1998-1999 Revised Budget Line item SOURCES OF REVENUE: 1998199 1995/96 1996/97 1997/98 1998/99 Revised Dollar Percerill Actuals Actuals Actuals Budget Budget Changes Change Operating Revenues: Sales Tax Revenues 55,413,939 57,888,149 63,496,222 65,625,000 68,500,000 2,875,000 4.4% Sales Tax TDA Planning & Admin 1,247,000 1,298,000 1,197,000 1,294,500 1,294,500 Sales Tax TDA Transit Allocation 4,453,800 3,800,185 4,124,434 4,350,000 4,153,679 (196,321) -4.5% STA Transit Allocation 1,670,743 1,812,380 1,982,721 2,360,478 2,360,478 SAFE Fees 1,031,117 1,033,019 1,060,791 1,040,000 1,065,000 25,000 2.4% Reimbursements: 7,754,264 5,470,049 9,539,357 10,086,920 7,085,420 (3,001,500) -29.8% Other Revenue 2,727,645 2,724,751 2,546,996 2,993,972 3,217,511 223,539 7.5% Investment Income 7,260,013 6,030,161 5,004,028 2,937,875 3,060,565 122,690 4.2% Total Operating Revenues 81,558,521 80,056,694 88,951,549 90,688,745 90,737,153 48,408 0.1% Debt Proceeds 14,000,000 61,429,211 350,000 350,000 100.0% Total Sources of Funds 95,558,521 80,056,694 150,380,760 90,688,745 91,087,153 398,408 0.4% EXPENDITURES: Personnel Salary & Frin 1,444,804 1,552,075 1,647,688 1,861,106 1,941,600 80,494 4.3% Services and Supplies 613,958 734,557 777,435 897,895 931,960 34,065 3.8% 90000 Capital Outlay-Equipme 144,538 53,677 306,660 166,200 98,221 (67,979) -40.9% Professional Costs: 65100 General Legal Services 464,326 1,018,544 394,635 325,000 325,000 65200 Special Legal Services 14,295 49,697 20,529 25,000 10,000 (15,000) -60.0% 65300 Financial Services 104,649 74,864 54,834 97,500 170,000 72,500 74.4% 65400 Audit Services 329,456 285,404 388,939 290,000 385,600 95,600 33.0% 65500 Other Professional Sery 414,529 425,208 531,388 649,920 867,920 218,000 33.5% Total Professional Costs Projects: 81000 Projects -General 1,404,223 1,011,991 1,859,105 1,833,900 1,693,900 (140,000) -7.6% 81100 Highway & Rail Enginee 1,913,874 1,651,448 1,747,979 2,231,969 2,172,012 (59,957) -2.7% 81300 Highway & Rail Constru 15,097,514 11,570,938 11,513,488 15,413,525 9,770,550 (5,642,975) -36.6% 81400 Highway & Rail ROW 1,950,209 6,182,270 1,579,141 4,568,656 1,300,540 (3,268,116) -71.5% 81500 Highway & Rail Special 347,036 511,729 353,542 235,000 350,000 115,000 48.9% 81600 SCRRA Capital Contrib 1,377,400 1,234,386 1,316,099 1,150,000 1,150,000 85000 Commuter Assistance 999,108 978,937 1,141,427 1,391,920 1,378,920 (13,000) -0.9% 86000 Special Projects 86100 Regional Transportatio 26,459,937 27,630,703 30,466,257 31,079,157 32,495,176 1,416,019 4.6% 86200 LTF Disbursements 351,215 305,095 309,000 327,295 397,295 70,000 21.4% 86300 STA Disbursements 1,026,000 1,269,583 1,535,401 2,746,194 2,186,116 (560,078) -20.4% 86400 Regional Arterial 24,724,468 23,113,312 21,035,529 7,895,150 10,068,505 2,173,355 27.5% 87000 Project Maintenance 447,773 557,317 1,064,975 597,294 550,094 (47,200) -7.9% 87100 Project Operations 657,585 798,163 756,036 1,106,127 1,129,787 23,660 2.1% 87200 Project Towing 514,558 545,312 523,458 679,628 657,800 (21,828) -3.2% Total Projects Costs 77,270.900 77.361.184 75.9M 417 7+ lgg 015 65,300,695 (5,955,120) -5.a,'o• 1,327,255 1,853,717 1,390,325 1,387,420 1,758,520 371,100 26.7% :3ij BUDGET COMPARATIVE -BY LINE ITEM 19984999 Revised Budget 1995/96 1996/97 Actuals Actuals cxpenairures oerore aisrnbutions and operating transfers 97000 Operating Transfer Total Expenditures Excess(Deficiency) of Revenues Over Expenditures Contingency Excess(Deficiency) of Revenues Over Expenditures After Cont Fund Balance, July 1 Ending Fund Balance • • 80,801,455 24,601,813 105,403,268 81,555,210 25, 242, 712 106,797,922 1997/98 1998/99 Actuals Budget 79,323,545 75,343,579 154,667,124 75,568,436 30,378,913 105,947,349 (9,844,747) (26,741,228) (4,286,364) (15,258,604) (1,502,000) (9,844,747) (26,741,228) (4,286,364) (16,760,604) 136,515,170 126,670,423 99,929,195 81,381,561 126,670,423 99,929,195 95,642,831 64,620,957 1998/99 Revised Budget 70, 030, 996 30,352, 217 100,383,213 Dollar Percent Changes Change (5,537,440) -7.3i (26,696) -0.1° (5,564,136) -5.3% (9,296,060) 5,962,544 -39.1 (1,502,000) (10,798,060) 5,962,544 -35.6% 95, 642, 831 14, 261,270 17.5% 84,844,771 20,223,814 31.3% 000061 • AGENDA ITEM 11 • • • • RIVERSIDE COUNTY TRANSPORTATION COMMISSION DATE: February 22, 1999 TO: Budget and Implementation Committee FROM: Dean Martin, Chief Financial Officer SUBJECT: Measure A Sales Tax Projections In preparation for the Strategic Plan, the Commission authorized staff to contract with Ernst & Young to update the Measure A sales tax revenue projection through the year 2009. Attached is the completed projection prepared by E & Y. Staff will use this projection as the basis for Phase I of the Strategic Plan. The econometrics model developed by Ernst & Young LLP uses personal income and the unemployment rate for the Riverside -San Bernardino Metropolitan Statistical Area (MSA). Ernst & Young, LLP obtained projections on these two variables from Regional Financial Associates (RFA) a consulting firm specializing in the development of comprehensive regional economic models for all MSA's in the United States. RFA's forecasts utilizes a number of factors including demographic, employment, and financial. The average annual compounded growth rate is 7.65%. The following additional assumptions were also used in the development of the Commission's revenue forecast: • The state does not change mix of items subject to the sales tax from what has been included historically. * The relative sales and property tax rates of Riverside and surrounding counties does not change from historical levels. * Inflation for the period of the forecast is assumed to be 3.17%. The State Board of Equalization's administrative fee is assumed to be 1.5% for the life of the Measure. Forecast results show Measure A revenues to be $1,122 million in nominal dollars from 1999 thru 2009. The difference is an increase of $17 million from the 1996 projection. To put that in perspective, for the Western County highway/rail program that would amount to a difference of $6.5 million. Financial Assessment Project Cost Source of Funds Included in Fiscal Year Budget .................... Year Included in Program Budget Year Programmed Approved Allocation Year of Allocation Budget Adjustment Required Financial Impact Not Applicable X STAFF RECOMMENDATION: That the Budget and Implementation Committee recommend the Commission receive and file 0063 • • • El ERNST &YOUNG LLP • Suite 200 3403 Tenth Street P.O. Box 12'0. 92502 Riverside, CA 92501 Independent Accountant's Report on Applying Agreed -Upon Procedures • Phone: 90(1'-i, "'00 Fax: 90q -,S- 8184 Report on Projection of Measure A Earned Sales Tax Revenues Assuming Nominal Income, Implicit Price Deflator, and Unemployment Rate Mr. Eric Haley, Executive Director Riverside County Transportation Commission At your request, we have performed certain agreed -upon procedures, as enumerated below, with respect to the projection of Measure A Earned Sales Tax Revenues for the Riverside County Transportation Commission (Commission) for the years ending June 30, 1998 through 2009, as presented in Exhibit A. These procedures, which were agreed to by the Commission, were performed solely to assist the Commission in its transportation planning process. This agreed -upon procedures engagement was performed in accordance with standards established by the American Institute of Certified Public Accountants (AICPA). The sufficiency of these procedures is solely the responsibility of the specified users of the report. Consequently, we make no representation regarding the sufficiency of the procedures described below either for the purpose for which this report has been requested or for any other purpose. Our procedures were as follows: 1. We assisted the Commission in developing an electronic econometric model for Riverside County Taxable Sales and for Measure A Earned Sales Tax Revenues, which is presented in Exhibit A. 2. We assisted the Commission in identifying key factors related to the projection methodology and assumptions that the Commission used to prepare the projection of Sales Tax Revenues based on Regional Financial Associates' variables, as described in the Notes to Exhibit A. 3. We entered data into the model for the Riverside County Taxable Sales and the related projection of Measure A Earned Sales Tax Revenues for the years ending June 30, 1998 through 2009. Ernst & Young LLP is a member of Ernst & Young International, Ltd. 000061 J ERNST & YOUNG LLP 4. We performed mathematical calculations and other clerical functions with respect to information provided by the Commission and tested the projection for mathematical accuracy. We found no exceptions as a result of these procedures. We were not engaged to, and did not, perform an examination, the objective of which would be the expression of an opinion on the accompanying projection of Measure A Sales Tax Revenues. Accordingly, we do not express an opinion on whether the prospective Measure A Earned Sales Tax Revenues are presented in conformity with AICPA presentation guidelines or on whether the underlying assumptions provide a reasonable basis for the presentation. Had we performed additional procedures, other matters might have come to our attention that would have been reported to you. Furthermore, there will usually be differences between the projected and actual results, because events and circumstances frequently do not occur as expected, and those differences may be material. We have no responsibility to update this report for events and circumstances occurring after the date of this report. This report is intended solely for the use of Commission management and the Board of Commissioners and should not be used by those who have not agreed to the procedures and taken responsibility for the sufficiency of the procedures for their purposes. However, this report is a matter of public record and its distribution is not limited. September 30, 1998 :•.444.4tt you71.1.1' • • 00W.: 2 • • Exhibit A Projection of Measure A Earned Sales Tax Revenues Years Ending June 30 Year Projected Measure A Projected Measure A Revenue Revenue, Net of SBOE expense ($ in thousands) ($ in thousands) 1998 64,145 63,183 1999 69,219 68,181 2000 74,606 73,487 2001 80,981 79,767 2002 87,700 86,385 2003 94,470 93,053 2004 101,502 99,979 2005 108,996 107,361 2006 117,031 115,275 2007 125,521 123,638 2008 134,479 132,462 2009 144,273 142,109 *The State Board of Equalization (SBOE) charges an administrative fee of 1.5% of Measure A Revenue Collected. 3 000066; Notes to Exhibit A - Projection of Measure A Earned Sales Tax Revenues Introduction and Overview A 1/2% Measure A Sales Tax over 20 years for transportation purposes was approved by • the electors of the County of Riverside in November 1988, and was first collected in July 1989. The first collections were remitted by the state of California to the Riverside County Transportation Commission (Commission) in September 1989. The projection presents, to the best of management's knowledge and belief, the expected sales tax revenues to be derived from the 1/2% sales tax imposed during the projection period for the years ending June 30, 1998 through 2009. Accordingly, the projection reflects the judgment of the expected conditions of the management of the Commission as of September 30, 1998, the date of this projection. The projected Measure A Earned Sales Tax Revenues include only the expected sales tax to be derived during the projection period and do not include any operations of the Commission. Accordingly, the projected Measure A Earned Sales Tax Revenues are not intended to be a projection of financial position, results of operations, or cash flows of the Commission. The assumptions disclosed herein are those that management believes are significant to the projection. Some assumptions will not materialize and unanticipated events and circumstances may occur subsequent to the date of this projection. Therefore, actual earned sales tax revenues may deviate materially from the projected revenues. Should amending legislation be enacted during the projection period, projection results may be materially affected. The Commission will use this projection information to develop its Short Range Financial Plan for the transportation sales tax program. The projection of taxable sales for Riverside County and the related Measure A Earned Sales Tax Revenues and Measure A Earned Sales Tax Revenues, net of State Board of Equalization (SBOE) expense, • • • �0OO 4 • • • available to the Commission for the years ending June 30, 1998 through 2009. is presented in Table 11: Table 1 Projected Nominal Taxable Sales and Nominal Measure A Revenue Years Ending June 30 Projected Nominal Projected Measure A Projected Measure A Year Taxable Sales Revenue Revenue, Net of SBOE expense % Change ($ in thousands) ($ in thousands) ($ in thousands) 1998 12,829,080. 64,145 63,183 N/A 1999 13,843,799 69,219 68,181 7.9% 2000 14,921,258 74,606 73,487 7.8% 2001 16,196,267 80,981 79,767 8.5% 2002 17,540,062 87,700 86,385 8.3% 2003 18,893,953 94,470 93,053 7.7% 2004 20,300,392 101,502 99,979 7.4% 2005 21,799,123 108,996 107,361 7.4% 2006 23,406,104 117,031 115,275 7.4% 2007 25,104,187 125,521 123,638 7.3% 2008 26,895,895 134,479 132,462 7.1% 2009 28,854,604 144,273 142,109 7.3% Measure A Earned Sales Tax Revenues are projected by the Commission based upon an econometric model which relates annual taxable sales figures to total personal income and the unemployment rate in Riverside County.' Projections of these variables (total personal income and the unemployment rate) were obtained from Regional Financial Associates (RFA), a specialty consulting firm which has developed comprehensive regional economic models for all counties in the United States. The methodology employed in the development of the econometric model is described in Appendix 1. RFA specializes in the collection of regional economic data and in providing regional economic projections that are consistent with both local conditions and overall growth in the national economy. As is the common practice, RFA's models are based on inflation adjusted (real) data. The average annual compounded growth rate of taxable sales in ' The State Board of Equalization(SBOE) reports annual taxable sales on a calendar year basis. To derive amounts for the year ended June 30, the mean value for two successive year end values was used. For instance, the mean of December 1995 and December 1996 was used as an estimate of the June 1996 fiscal year value. The inverse of the unemployment rate was used, since mathematical calculations indicated that it is more closely correlated to taxable sales than the unemployment rate itself. Mathematical calculations indicated a slight non -linearity in the taxable sales: unemployment rate relationship. 5 000068 Riverside County and related Measure A revenues, as presented in Table 1, was calculated to be 7.65 percent over the projection period. Assumptions There are several important assumptions which underly the taxable sales projection. In particular, the accuracy of the projection is directly tied to the accuracy of the RFA projection for the explanatory variables and annual inflation rates. RFA's projections of. the model's explanatory variables (total personal income and the unemployment rate) and price level (implicit price deflator) are described in Table 2. Table 2 Projection Data for Riverside County Years Ending December 31 (Source: Regional Financial Associates, September 1998) Year Nominal Total Implicit Price Unemployment Personal lncome Deflator(IPD) Rate (S in Millions) (1992 Dollars) (%) 1998 32,776 112.8 6.6 1999 35,413 115.1 6.6 2000 38,608 118.2 6.5 2001 42,321 121.7 6.5 2002 46,113 125.5 6.6 2003 49,991 129.4 6.7 2004 53,950 133.6 6.7 2005 58,089 137.9 6.6 2006 62,509 142.5 6.5 2007 67,123 147.3 6.4 2008 72,034 152.3 6.3 2009 77,390 157.4 6.1 RFA's projections are derived from an econometric model which links together the major components (including demographic, employment, financial, and other factors) of the Riverside County economy. The model is dynamic in that the results for a particular year are linked to and partially determined by conditions in prior years. The model is also simultaneous in the sense that it allows feedback effects among/between related variables. For instance, the effect of higher interest rates would impact, among other things, banking industry profits and consumer borrowing (and, of course, spending), thereby slowing U00069 6 employment growth and lowering economic activity. The impacts over time of such a change would be captured by the model. Other assumptions upon which the projection implicitly relies include the following: • The list of products/items which are subject to sales tax in Riverside County during the projection period (1998 through 2009) is the same as for the historical period; • Relative sales and property tax rates in Riverside and neighboring counties remain at levels observed during the historical period; and • An administrative fee of 1.5% of sales taxes received by the Commission is allocated during the projection period for administrative expenses paid to the SBOE. 7 000070 • Appendix 1 Summary of Econometric Model Development • • 000071 Methodology • • The projection methodology employed the standard econometric approach whereby: • Explanatory variables correlated with taxable sales are identified; • Correlations between these (explanatory) variables and taxable sales are measured via statistical methods; and • Estimated correlations between explanatory variables and taxable sales are used to project future taxable sales given projections for the explanatory variables. Estimation of Relationship Between Taxable Sales and Explanatory Variables In order to develop the model for projecting taxable sales in Riverside County, the correlations between taxable sales and a number of potential independent (explanatory) variables were measured. The variables which were considered and rejected included the working age population and interest rates. A very high percentage of the variation in taxable sales over time were found to be correlated with changes in total personal income and the unemployment rate. The following model (Equation 1) yielded the best results based on data for the years 1980 through 1996: (1) Real Taxable Sales{in thousands}= -465,641 + 345.98 * Real Total Personal Income{in millions} + 16,333,357* (1/Unemployment Rate) Real (inflation -adjusted) taxable sales data for Riverside County were obtained from the California State Board of Equalization (SBOE). RFA provided the personal income and the unemployment rate figures. The theoretical justification for including each of these variables is as follows: Total personal income includes wages, salaries, and benefits earned from all sources. The positive correlation between taxable sales and the income level of local customers is due to the fact that spending rises with the level of income. • The relationship, from a theoretical point of view, between the unemployment rate and taxable sales is perhaps less clear. Of course, as the unemployment rate rises, total personal income would be expected to decline to some extent since unemployment benefits are likely to be lower than the wages, salaries, and benefits 9 000072 earned by an employed worker. Thus, these explanatory variables are somewhat correlated with one another'. Ideally, explanatory variables that are not correlated are preferred; however, given the importance of employment trends on the perceptions of workers regarding the stability/security of their own employment status, the unemployment rate was included. In effect, the unemployment rate serves as an indicator of consumer confidence, with rising (falling) rates of unemployment leading to sentiments of decreasing (increasing) job security. Because consumer spending, and hence taxable sales, is largely driven by consumer confidence, the independent effect of the unemployment rate on taxable sales was deemed to be important and, therefore, was built into the model. The finding that the coefficient on the inverse of the unemployment rate in Equation 1 is positive and statistically significant supports this view. Statistical analysis showed that inclusion of each of these explanatory variables (total personal income and the unemployment rate) adds significantly to the accuracy of the model in projecting taxable sales. Alternative functional forms of Equation 1 were tested, such as using the logarithms of these variables in order to capture underlying non- linearities among the variables or allowing the impact of each variable to be spread over time (i.e., to determine whether changes in the explanatory variables in one period impact taxable sales in later periods). The results of this testing indicated that the model described above is strongly supported on statistical grounds and is likely to yield the most accurate projections of taxable sales levels. Assessment of the Model's Projection Ability The goodness of fit of the model can be assessed in a number of ways. One means of measuring this fit is by examination of a variety of statistical results associated with the estimated equation. For instance, the squared correlation coefficient (commonly referred to as the R2 statistic) represents the percentage of the variation in taxable sales that is explained by the independent variables in the equation. For the years 1980 through 1996, this R2 statistic reveals that over 99 percent of changes in taxable sales in Riverside County were correlated with changes in personal income and the unemployment rate. ' This correlation was measured and did not result in any serious consequence. 10 t�00It .` . ' • • • Another measure of the model's goodness of fit is the "t -statistic" associated with each estimated coefficient. These t -statistics are used to measure the probability that the estimated coefficients are different than zero, i.e., that a significant relationship exists between the variable in question and taxable sales. The larger the t -statistic. the higher the probability that the estimated coefficient is non -zero. For the coefficients in Equation 1, the calculated t -statistics on total personal income and the unemployment rate (38.5 and 8.7. respectively) indicate that the results are statistically significant. In fact. the probability that either coefficient is actually zero is less than one percent. The model's ability to project real taxable sales is presented in Figure 1 by comparing the actual taxable sales for Riverside County versus projected (predicted) values: $25,000,000 $20,000,000 $15,000,000 $10,000,000 $5,000,000 Figure 1: Real Taxable Sales (1997$) Projected vs. Actual (Years Ended December 31) $0 CO Cr) oor Actual Real Sales Projected Real Sales 1 11 N R CO CO 0 N CO CO 0 N V CO CO O CO M M O c Cn CT O O O O O O O 0) 0) CO 0) 0) 0) 0) 0) . 0 0 O 0 0 N N (\J ( ( Year As described in Table 3 below, for the years 1980 through 1996. the model's prediction error ranged from -3.8 percent to 2.8 percent. This is sometimes referred to as the coefficient being "statistically significant" --that is. being significantly different from zero. 11 000071 Table 3 Real Taxable Sales (1997$): Predicted vs. Actual Years Ended December 31 Actual Real Projected Real Projected Projected Year Taxable Sales Taxable Sales Less Actual Less Actual (5 in thousands) (5 in thousands) (%) 1980 6,257,010 6,261,413 4,403 0.1% 1981 6,224,243 6,327,222 102,979 1.6% 1982 5,935,003 5,931,842 -3,161 -0.1% 1983 6,483,647 6,278,946 -204,701 -3.3% 1984 7,454,270 7,356,917 -97,353 -1.3% 1985 7,968,399 7,966,357 -2,042 0.0% 1986 8,541,070 8,785,241 244,171 2.8% 1987 9,303,997 9,535,105 231,108 2.4% 1988 10,012,772 10,078,874 66,102 0.7% 1989 11,124,807 10,717,159 -407,648 -3.8% 1990 11,459,959 11,168,423 -291,536 -2.6% 1991 10,291,977 10,320,280 28,303 0.3% 1992 10,316,270 10,161,330 -154,940 -1.5% 1993 10,097,136 10,205,303 108,167 1.1% 1994 10,440,198 10,510,596 70,398 0.7% 1995 10,722,994 10,903,233 180,239 1.7% 1996 11,352,094 11,477,605 125,511 1.1% Using Estimated Coefficients to Project Tax Revenue In order to project real (1997$) taxable sales, the estimated coefficients described above were applied to projected values of the explanatory variables. In other words, the coefficients in Equation 1 above have been multiplied by annual projected values for each of the explanatory variables for the years 1998 through 2009, as provided by RFA. To determine nominal taxable sales, the real taxable sales figure was multiplied by a factor that takes into account the rate of inflation.' In order to estimate associated sales tax revenue (net of SBOE charges), the projected taxable sales figure was multiplied by 0.4925 percent. 6 5 This factor is simply the value of the implicit price deflator for that year divided by the implicit price deflator value in 1997 6 This multiplier assumes that the Measure A sales tax revenue is 0.5 percent of sales and that the SBOE retains 1.5 percent of Measure A revenue collected. [0.004925 = 0.005 (1-0.015)] 0000 12 Sensitivity Analysis • • The projection depends on a number of critical assumptions. As a result, the impacts on projected Measure A revenues of small differences in projected personal income growth and the inflation rate (versus the RFA forecast shown in Table 2) have been calculated. Figures 2 and 3, respectively, summarize the impact on projected taxable sales in Riverside County of the following scenarios: • Total real personal income growth is one percent higher or lower than what RFA predicts for 1997-2009. • Average inflation rate is one percentage point higher or lower than what RFA predicts for 1997-2009. The data underlying Figures 2 and 3 are presented in Tables 4 and 5, respectively, which are included in Appendix 2. 13 U0007r3 Figure 2: Projected Measure A Revenue, Net of SBOE Expense — Total Personal Income Sensitivity (Years Ending June 30) ($ in thousands) $160,000 $150,000 $140,000 $130,000 $120,000 $110,000 $100,000 $90,000 $80,000 $70,000 $60,000 $50,000 0) 0) m _ _ . . . . Wdh real income growth 1 percent below RFA estimate ___.._ With RFA real income grow th estenate . _ . A._ . With real income growth 1 percent above 1 RFA esti hate 4 I.4 . •" c" • . CO 0) 0) CI) 0 0) O - N O O N O 0 N O O N Year O O O O 0 O N N N N N N Figure 3: Projected Measure A Revenue, Net of SBOE Expense — Inflation Rate Sensitivity (Years Ending June 30) (5 in thousands) $170,000 $160,000 $150,000 $140,000 $130,000 $120,000 $110,000 $100,000 $90,000 $80,000 $70,000 $60,000 $50,000 0) 0) Q) _ ....... With inflation rate one percentage point below RFA estimate 1 . - With RFA inflation estimate . . . ate IthInIonePercta9oInt: >/ m 0) 0) 0) 0) 0) 0 0 O N O O O O N 0 0 0 N Year Tr CD • OD 0 0 NO N 0 N 0 O 000077 14 Conclusions • • • Projections of Riverside County taxable sales are not available directly from any known sources. In order to develop such projections, an econometric model was developed to estimate the relationship between taxable sales in Riverside County and other variables — the County's unemployment rate and total personal income — for which independent projections have been made. Specifically, this model has been used, in conjunction with forecasts of related variables made by Regional Financial Associates, to project Riverside County Taxable Sales and Measure A Earned Sales Tax Revenues for the Riverside County Transportation Commission. The model's statistical properties indicate that the estimated relationships between taxable sales and the explanatory variables have been approximately determined. The RFA projection is the best available estimate of the variables that were found to be highly correlated with taxable sales. As with any (especially long-term) projection, there is the risk that actual results will differ from the projection, and the differences could be material. 15 (iO(W)7.54 Appendix 2 Summary Tables of Projected Measure A Revenue Under Different Scenarios 16 (JU(l+! `, `i • • • Table 4 Projected Nominal Measure A Revenue (Net of SBOE Expense) Under Different Real Personal Income Growth Rates Years Ending June 30 ($ in thousands) With Real Income With RFA Income With Real Income Year Growth Rate 1% Lower than Growth Rate Growth Rate 1% Higher than RFA Estimate Estimate RFA Estimate 1998 62,415 63,183 63,956 1999 66,813 68,181 69,569 2000 71,420 73,487 75,605 2001 76,879 79,767 82,753 2002 82,549 86,385 90,389 2003 88,148 93,053 98,221 2004 93,882 99,979 106,466 2005 99,937 107,361 115,334 2006 106,375 115,275 124,925 2007 113,102 123,638 135,172 2008 120,120 132,462 146,105 2009 127,758 142,109 158,125 Table 5 Projected Nominal Measure A Revenue (Net of SBOE Expense) Under Different Inflation Rates Years Ending June 30 ($ in thousands) With RFA With RFA With RFA Year Inflation Rate Inflation Rate Inflation Rate Minus 1 Percentage Point Estimate Plus 1 Percentage Point 1998 62,240 63,183 64,133 1999 66,504 68,181 69,885 2000 70,978 73,487 76,062 2001 76,293 79,767 83,364 2002 81,822 86,385 91,156 2003 87,284 93,053 99,143 2004 92,873 99,979 107,555 2005 98,763 107,361 116,615 2006 105,017 115,275 126,423 2007 111,547 123,638 136,907 2008 118,352 132,462 148,097 2009 125,742 142,109 160,420 17 000080