HomeMy Public PortalAbout01 January 10, 2024 CommissionRIVERSIDE
COUNTY
TRANSPORTATION
COMMISSION
MEETING AGENDA
TIME/DATE: 9:30 a.m. / Wednesday, January 10, 2024
LOCATION: BOARD ROOM
County of Riverside Administrative Center
4080 Lemon Street, First Floor, Riverside
COMMISSIONERS
Chair— Lloyd White
Vice Chair— Karen Spiegel
Second Vice Chair — Raymond Gregory
Kevin Jeffries, County of Riverside, District 1
Karen Spiegel, County of Riverside, District 2
Chuck Washington, County of Riverside, District 3
V. Manuel Perez, County of Riverside, District 4
Yxstian Gutierrez, County of Riverside, District 5
Sheri Flynn / Rick Minjares, City of Banning
Lloyd White /Julio Martinez, City of Beaumont
Joseph DeConinck / Johnny Rodriguez, City of Blythe
Linda Molina / Wendy Hewitt, City of Calimesa
Jeremy Smith / Jennifer Dain, City of Canyon Lake
Raymond Gregory / Mark Carnevale, City of Cathedral City
Steven Hernandez / Stephanie Virgen, City of Coachella
Wes Speake / Jim Steiner, City of Corona
Scott Matas / Russell Betts, City of Desert Hot Springs
Clint Lorimore / Todd Rigby, City of Eastvale
Linda Krupa / Malcolm Lilienthal, City of Hemet
Dana Reed / Ty Peabody, City of Indian Wells
Waymond Fermon / Oscar Ortiz, City of Indio
Brian Berkson / Armando Carmona, City ofJurupa Valley
Kathleen Fitzpatrick / Deborah McGarrey, City of La Quinta
Bob Magee / Natasha Johnson, City of Lake Elsinore
Bill Zimmerman / Dean Deines, City of Menifee
Ulises Cabrera / Edward Delgado, City of Moreno Valley
Cindy Warren / Ron Holliday, City of Murrieta
Berwin Hanna / Katherine Aleman, City of Norco
Jan Harnik / Kathleen Kelly, City of Palm Desert
Lisa Middleton / To Be Appointed, City of Palm Springs
Michael M. Vargas / Rita Rogers, City of Perris
Meg Marker / Lynn Mallotto, City of Rancho Mirage
Chuck Conder / Patricia Lock Dawson, City of Riverside
Alonso Ledezma / Valerie Vandever, City of San Jacinto
James Stewart / Jessica Alexander, City of Temecula
Joseph Morabito / Ashlee DePhillippo, City of Wildomar
Catalino Pining, Governor's Appointee Caltrans District 8
Comments are welcomed by the Commission. If you wish to provide comments to the Commission,
please complete and submit a Speaker Card to the Clerk of the Board.
RIVERSIDE COUNTY TRANSPORTATION COMMISSION
www.rctc.org
MEETING AGENDA *
*Actions may be taken on any item listed on the agenda
9:30 a.m.
Wednesday, January 10, 2024
Board Room
County of Riverside Administrative Center
4080 Lemon Street, First Floor, Riverside, CA
This meeting is being conducted in person as well as via teleconference. Please visit
https://rivco.org/constituent-speaking-request to complete a speaker slip and receive further
instructions to participate via teleconference. For members of the public wishing to submit written
comments, please email comments to the Clerk of the Board at Imobley@rctc.org prior to
January 9, 2024, and your comments will be made part of the official record of proceedings.
In compliance with the Brown Act and Government Code Section 54957.5, agenda materials distributed 72 hours prior to
the meeting, which are public records relating to open session agenda items, will be available for inspection by members
of the public prior to the meeting at the Commission office, 4080 Lemon Street, Third Floor, Riverside, CA, and on the
Commission's website, www.rctc.org.
In compliance with the Americans with Disabilities Act, Government Code Section 54954.2, and the Federal Transit
Administration Title VI, please contact the Clerk of the Board at (951) 787-7141 if special assistance is needed to participate
in a Commission meeting, including accessibility and translation services. Assistance is provided free of charge. Notification
of at least 48 hours prior to the meeting time will assist staff in assuring reasonable arrangements can be made to provide
assistance at the meeting.
1. CALL TO ORDER
2. ROLL CALL
3. PLEDGE OF ALLEGIANCE
4. PUBLIC COMMENTS — Each individual speaker is limited to speak three (3) continuous minutes or less.
The Commission may, either at the direction of the Chair or by majority vote of the Commission, waive
this three -minute time limitation. Depending on the number of items on the Agenda and the number of
speakers, the Chair may, at his/her discretion, reduce the time of each speaker to two (2) continuous
minutes. In addition, the maximum time for public comment for any individual item or topic is thirty
(30) minutes. Also, the Commission may terminate public comments if such comments become
repetitious. Speakers may not yield their time to others without the consent of the Chair. Any written
documents to be distributed or presented to the Commission shall be submitted to the Clerk of the Board.
This policy applies to Public Comments and comments on Agenda Items.
Under the Brown Act, the Commission should not take action on or discuss matters raised during public
comment portion of the agenda that are not listed on the agenda. Commission members may refer such
matters to staff for factual information or to be placed on the subsequent agenda for consideration.
Riverside County Transportation Commission Meeting Agenda
January 10, 2024
Page 2
5. ADDITIONS / REVISIONS — The Commission may add an item to the Agenda after making a
finding that there is a need to take immediate action on the item and that the item came to the
attention of the Commission subsequent to the posting of the agenda. An action adding an
item to the agenda requires 2/3 vote of the Commission. If there are less than 2/3 of the
Commission members present, adding an item to the agenda requires a unanimous vote.
Added items will be placed for discussion at the end of the agenda.
6. CONSENT CALENDAR —All matters on the Consent Calendar will be approved in a single motion
unless a Commissioner(s) requests separate action on specific item(s). Items pulled from the
Consent Calendar will be placed for discussion at the end of the agenda.
6A. APPROVAL OF MINUTES — DECEMBER 13, 2023
6B. FISCAL YEAR 2022/23 COMMISSION AUDIT RESULTS
Overview
This item is for the Commission to:
1) Receive and file the Fiscal Year 2022/23:
a)
b)
c)
d)
e)
f)
g)
h)
i)
j)
k)
I)
m)
n)
Page 1
Page 21
Annual Comprehensive Financial Report (ACFR);
Local Transportation Fund (LTF) Financial and Compliance Report;
State Transit Assistance (STA) Fund Financial and Compliance Report;
State of Good Repair (SGR) Fund Financial and Compliance Report;
Proposition 1B Rehabilitation and Security Project
Accounts Financial and Compliance Reports;
Low Carbon Transit Operations Program (LCTOP)
Compliance Reports;
Single Audit Report;
RCTC 91 Express Lanes Fund Financial Report;
15 Express Lanes Fund Financial Report;
Debt Compliance Report;
Auditor Required Communications Report;
Agreed -Upon Procedures Report related to
Calculation;
Agreed -Upon Procedures Report
Program (CAP) incentives; and
Management certifications.
6C. QUARTERLY FINANCIAL STATEMENTS
Overview
This item is for the Commission to:
(Proposition
1B)
Account Financial and
the Appropriations Limit
related to the
Commuter Assistance
Page 412
1) Receive and file the Quarterly Financial Statements for the three months ended
September 2023.
Riverside County Transportation Commission Meeting Agenda
January 10, 2024
Page 3
6D. MONTHLY INVESTMENT REPORT
Page 421
Overview
This item is for the Commission to:
1) Receive and file the Monthly Investment Report for the month ended
November 30, 2023.
6E. AGREEMENTS FOR ON -CALL MAINTENANCE AND REPAIR SERVICES FOR THE
COMMUTER RAIL STATIONS AND TOLL FACILITIES
Overview
This item is for the Commission to:
Page 424
1) Award the following agreements to provide on -call maintenance and repair
services for the commuter rail stations and toll facilities for a three-year term,
with a one-year option to extend the agreement, for a total aggregate amount
not to exceed $16,850,000;
a) Agreement No. 24-24-034-00 to 4D Surface Management;
b) Agreement No. 24-24-049-00 to Joshua Grading & Excavating;
c) Agreement No. 24-24-050-00 to Real Estate Consulting & Services
2) Authorize the Chair or Executive Director, pursuant to legal counsel review, to
execute the agreements on behalf of the Commission; and
3) Authorize the Executive Director, or designee, to execute task orders awarded
to the contractors under the terms of the agreements.
6F. RIVERSIDE COUNTY 2025 FEDERAL TRANSPORTATION IMPROVEMENT PROGRAM
FINANCIAL RESOLUTION
Overview
This item is for the Commission to:
Page 509
1) Adopt Resolution No. 24-001, "Resolution of the Riverside County Transportation
Commission Certifying Riverside County has Resources to Fund Projects in the
Federal Fiscal Years 2024/25 Through 2029/30 Transportation Improvement
Program and Affirming Commitment to Implement All Projects and Phases as
Applicable in the Program".
Riverside County Transportation Commission Meeting Agenda
January 10, 2024
Page 4
7. AMENDMENT TO THE METROLINK MEMORANDUM OF UNDERSTANDING FOR FISCAL YEAR
2023/24
Page 517
Overview
This item is for the Commission to:
1) Approve an advance of Local Transportation Funds (LTF) of $7,365,769 for the
Commission's share of preventative maintenance operating expenses for the Southern
California Regional Rail Authority (SCRRA) in Fiscal Year (FY) 2023/24; an
2) Authorize the Executive Director to finalize and execute Memorandum of
Understanding (MOU) Amendment No. 1 No. 23-25-079-01, pursuant to legal counsel
review, with SCRRA regarding the advance of funds.
8. DRAFT COOPERATIVE AGREEMENT WITH THE CITY OF WILDOMAR AND WESTERN RIVERSIDE
COUNCIL OF GOVERNMENTS FOR THE PREPARATION OF THE BUNDY CANYON ROAD AND
WILDOMAR TRAIL INTERSTATE 15 INTERCHANGES PROJECT STUDY REPORTS
Page 530
Overview
This item is for the Commission to:
1) Approve Cooperative Agreement No. 24-31-055-00 with the city of Wildomar and
Western Riverside Council of Governments (WRCOG) for the preparation of two
separate Project Study Reports (PSR's) for the Bundy Canyon Road and Wildomar Trail
Interstate 15 Interchange projects (project); and
2) Authorize the Executive Director, pursuant to legal counsel review, to execute the
agreement and future non -funding agreements and/or amendments on behalf of the
Commission.
9. STATE AND FEDERAL LEGISLATIVE UPDATE
Overview
This item is for the Commission to:
1) Receive and file a state and federal legislative update.
10. ITEM(S) PULLED FROM CONSENT CALENDAR AGENDA
11. EXECUTIVE DIRECTOR REPORT
Page 540
Riverside County Transportation Commission Meeting Agenda
January 10, 2024
Page 5
12. COMMISSIONER COMMENTS
Overview
This item provides the opportunity for brief announcements or comments on items or matters
of general interest.
13. ADJOURNMENT
The next Commission meeting is scheduled to be held on Thursday and Friday
January 25-26, 2024.
AGENDA ITEM 6A
MINUTES
RIVERSIDE COUNTY TRANSPORTATION COMMISSION
MEETING MINUTES
Wednesday, December 13, 2023
1. CALL TO ORDER
The Riverside County Transportation Commission was called to order by
Chair Bob Magee at 9:30 a.m. in the Board Room at the County of Riverside Administrative
Center, 4080 Lemon Street, First Floor, Riverside, California, 92501. For public comment
visit https://rivco.org/constituent-speaking-request to complete a speaker slip.
2. ROLL CALL
Commissioners/Alternates Present
Mario Amanda
Brian Berkson
Chuck Conder
Ulises Cabrera
Joseph DeConinck
Waymond Fermon*
Kathleen Fitzpatrick
Raymond Gregory
Berwin Hanna
Jan Harnik
Steven Hernandez
Kevin Jeffries
Linda Krupa
Clint Lorimore
Bob Magee
Meg Marker
Scott Matas
*Arrived after the meeting was called to order.
Lisa Middleton
Linda Molina
Joseph Morabito
V. Manuel Perez*
Dana Reed
Jeremy Smith
Karen Spiegel
James Stewart
Wes Speake
Michael M. Vargas
Valerie Vandever
Cindy Warren*
Chuck Washington
Lloyd White
Bill Zimmerman
Commissioners Absent
Sheri Flynn
Yxstian Gutierrez
3. PLEDGE OF ALLEGIANCE
Vice Chair Lloyd White led the Commission in a flag salute.
4. PUBLIC COMMENTS
There were no requests to speak from the public.
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5. ADDITIONS / REVISIONS
There were no additions or revisions to the agenda.
6. CONSENT CALENDAR
M/S/C (Gregory/Berkson) to approve the following Consent Calendar items.
Commissioner Speake recused himself on Agenda Item 6F.
6A. APPROVAL OF MINUTES — NOVEMBER 8, 2023
6B. PROPOSED 2024 COMMISSION/COMMITTEE MEETING SCHEDULE
1) Adopt its 2024 Commission/Committee Meeting Schedule.
6C. MONTHLY INVESTMENT REPORT
1) Receive and file the Monthly Investment Report for the month ended
October 31, 2023.
6D. AMENDMENT TO PROJECT AND CONSTRUCTION MANAGER SERVICES FOR THE
INTERSTATE 15/STATE ROUTE 91 EXPRESS LANES CONNECTOR PROJECT
1) Approve Agreement No. 15-31-001-14, Amendment No. 14 to Agreement
No. 15-31-001-00, with Parsons Transportation Group, Inc. (Parsons) to
provide additional project and construction management (PCM) services
for the Interstate 15 (I-15)/State Route 91 (SR -91) Express Lanes project
(15/91 ELC) in the amount of $2,330,533, plus a contingency of $233,053,
for an additional amount of $2,563,586; and extend the term to June 30,
2027;
2) Authorize the Chair or Executive Director, pursuant to legal counsel review,
to execute the agreement on behalf of the Commission; and
3) Authorize the Executive Director or designee to approve contingency work
up to the total not to exceed amount as required for the Project.
6E. AGREEMENT FOR JANITORIAL SERVICES FOR THE COMMUTER RAIL STATIONS
AND TOLL FACILITIES
1) Award Agreement No. 24-24-005-00 to Ultimate Maintenance Services,
Inc. to provide janitorial services for the Commuter Rail stations and toll
facilities for a three-year term, and one, two-year option to extend the
agreement, in the amount of $1,057,345, plus a contingency amount of
$105,735, for a total amount not to exceed $1,163,080;
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December 13, 2023
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2) Authorize the Chair or Executive Director, pursuant to legal counsel
review, to execute the agreement on behalf of the Commission; and
3) Authorize the Executive Director, or designee, to approve the use of the
contingency amount as may be required for these services.
6F. AMENDMENT NO. 4 WITH WSP USA INC., FOR PROFESSIONAL SERVICES, AND
OPERATIONS AND MAINTENANCE AGREEMENT WITH CALTRANS FOR THE
INTERSTATE 15 SMART FREEWAY PILOT PROJECT
1) Approve Agreement No. 21-31-063-04, Amendment No. 4, to Agreement
No. 21-31-063-00 with WSP USA Inc., (WSP) to provide professional
services for the Interstate 15 SMART Freeway Pilot Project (Project), in the
amount of $698,102 plus a contingency amount of $69,810 for an
additional amount of $767,912, and a total amount not to exceed
$4,767,912;
2) Approve Agreement No. 23-31-063-00 with Caltrans for the draft
operations and maintenance (O&M) of the Project;
3) Authorize the Chair or Executive Director, pursuant to legal counsel
review, to execute the agreements on behalf of the Commission;
4) Authorize the Executive Director, or designee, to approve contingency
work as may be required for the Project; and
5) Authorize the Executive Director or designee, pursuant to legal counsel
review, to execute non -funding amendments to the agreements on behalf
of the Commission.
6G. QUARTERLY REPORTING OF CONTRACT CHANGE ORDERS FOR CONSTRUCTION
CONTRACTS
1) Receive and file the Quarterly Report of Contract Change Orders for
Construction Contracts for the three months ended September 30, 2023.
6H. TRAFFIC RELIEF PLAN PUBLIC ENGAGEMENT PROGRAM
1) Award Agreement No. 24-15-032-00 to AlphaVu for Public Engagement
Program services for an eight -month term, in an amount not to exceed
$986,034; and
2) Authorize the Chair or Executive Director, pursuant to legal counsel review,
to execute the agreement on behalf of the Commission.
61. STATE AND FEDERAL LEGISLATIVE UPDATE
1) Adopt the Commission's 2024 State and Federal Legislative Platform; and
2) Receive and file a state and federal legislative update.
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6J. QUARTERLY PUBLIC ENGAGEMENT METRICS REPORT, JULY - SEPTEMBER 2023
1) Receive and file the Quarterly Public Engagement Metrics Report for
July - September 2023.
6K. RIVERSIDE COUNTY ZERO -EMISSION BUS ROLLOUT PLANS AND FUNDING AND
IMPLEMENTATION STRATEGY
1) Receive and file an update on the Riverside County Zero -Emission Bus
(ZEB) Rollout Plans and Funding and Implementation Strategy (Project);
2) Direct staff to review existing transit funding policies and continue to work
with the transit operators to strategize and leverage revenue sources to
support the transition to zero -emission; and
3) Award sole source Agreement No. 24-62-042-00 with Center for
Transportation and the Environment (CTE) for ongoing plan updates and
zero -emission technical assistance for a three-year term in the amount of
150,000, plus a contingency of $15,000, for a total amount not to exceed
$165,000.
At this time, Commissioners V. Manuel Perez, Cindy Warren, and Waymond Fermon joined the
meeting.
7. CITY OF DESERT HOT SPRINGS REQUEST FOR A LOAN FOR STORM DAMAGED ROAD
REPAIRS PROJECT
Sergio Vidal, Chief Financial Officer, presented the city of Desert Hot Springs (City) request
for a loan for storm damaged road repairs project, highlighting the following:
• Overview
✓ August 2023 — Tropical Storm Hilary hit the Coachella Valley
✓ Impact: Extensive flood damage on Mission Creek Watershed
o Major Arterials impacted:
Dillon Road
— Little Morongo Road
Indian Canyon Drive
• City approach
✓ September thru October 2023 — Assessed impact of the storms and sought
Federal and/or State funding to expedite reconstruction of damaged
infrastructure
✓ November 2023: Desert Hot Springs City Council approved emergency
contract repairs with three contractors to perform work on the impacted
arterials
✓ November 2023: City received approval from Federal Highway
Administration (FHWA) for up to $7.5 million in funding
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• Preliminary loan terms
Sergio Vidal noted that the Frank Luckino, City Manager from City of Desert Hot Springs,
is also here to answer any questions.
Commissioner Scott Matas supports this item and discussed how the flood devastated
their community. The Mission Creek Wash was the hardest hitting wash in Riverside
County during Tropical Storm Hilary, and it devastated three main arterials at the west
end. He stated they were struggling when Frank Luckino became the city manager last
month on how to fund this project. He expressed appreciation as these funds will make
sure this happens and the federal government will be repaying it back in one to four years.
He made the motion to approve staff recommendation.
M/S/C (Matas/Hernandez) to:
1) Approve Agreement No. 24-31-052-00 to loan the city of Desert Hot
Springs (City) 2009 Measure A funds in the amount of $7,500,000 for
Storm Damaged Road Repairs Project (Project) with the City's repayment
of the loan anticipated from federal Emergency Relief (ER) Program
funds; and
2) Authorize the Chair or Executive Director, pursuant to legal counsel
review, to develop, finalize and execute the agreement, on behalf of the
Commission.
8. AGREEMENT FOR PROJECT AND CONSTRUCTION MANAGEMENT SERVICES FOR THE
INTERSTATE 15 EXPRESS LANES PROJECT SOUTHERN EXTENSION
Jeff Dietzler, presented the Interstate 15 Express Lanes Project Southern Extension
(ELPSE) for project and construction management (PCM) services, highlighting the
following areas:
• Project scope
✓ Dual Express Lanes in Median
✓ Limits: Cajalco Road to State Route 74
✓ $650 Million Total Capital Cost
• Current ELPSE Project Schedule
• Interstate 15 Ad Hoc Committee Summary
✓ Discussed and approved at the March 27, 2023 Interstate 15 Ad Hoc
Committee
o Initiate an Investment Grade T&R Study
Quantify impacts to the 15 EL toll revenue and TIFIA loan
covenants
Support potential funding strategies for the ELPSE
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o Proceed with Progressive Design -Build delivery and procurement
of PCM Services
• Progressive Design -Build — ELPSE
✓ Senate Bill 617 (passed 10/4/23), authorizing the use of Progressive
Design -Build delivery for local agency transportation projects
✓ Collaborative approach between agency and contractor
o Early contractor input and innovation
o Potential for both phased project delivery and phased project
funding
• PCM Services Procurement
• Funding / Budget Adjustment
✓ Federal Funding for PCM Services Obligated May, 2023 = $67 million;
balance of $19.6 million with Local Funds (Measure A).
✓ Fiscal Year 23/24 Budget allocated $2 million for PCM services. Based on
the negotiated scope and schedule for PCM services, a budget adjustment
increase of $3.4 million is needed in FY 23/24.
In response to Commissioner Speake's question if the Transportation Infrastructure
Finance and Innovation Act (TIFIA) loan convenance will come back to this Commission
for review.
Anne Mayer stated that the Commission will be the entity making the decision whether
they pursue a TIFIA loan so absolutely.
In response to Commissioner Joseph Morabito's question if these lanes will eliminate the
bottleneck on 1-15 south, Jeff Dietzler replied that currently the bottleneck southbound
at Cajalco it goes to two tolled express lanes and a merge with three general purpose
lanes. The scope of this project takes those two lanes and extends them through on down
to Lake Elsinore and then taper out like it currently does in Corona.
Commissioner Morabito stated those that still live in southwest Riverside County will
probably still experience that.
Chair Magee replied that Commissioner Morabito is correct as the traffic is further moving
south.
Anne Mayer stated as a part of the scope of the project staff is looking to see how they
will transition that south end of the project, so it is not as abrupt as the one to the north.
As they have seen with many projects, they build one section of a corridor it just shifts
the bottleneck somewhere else.
M/S/C (Reed/Spiegel) to:
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1) Award Agreement No. 24-31-004-00 with Parsons Transportation Group
Inc. to provide project and construction management (PCM) Services for
the Interstate 15 Express Lanes Project Southern Extension (ELPSE) for an
eight -year term in the amount of $78,702,500, plus a contingency
amount of $7,870,250, for a total amount not to exceed $86,572,750;
2) Authorize the Chair or Executive Director, pursuant to legal counsel
review, to finalize and execute the agreement, on behalf of the
Commission;
3) Authorize the Executive Director, or designee, to approve contingency
work up to the total not to exceed amount as required for these services;
and
4) Approve an increase in the Fiscal Year 2023/24 Budget from $2,000,000
to $5,364,161.
9. AMENDMENT NO. 11 WITH MICHAEL BAKER INTERNATIONAL FOR THE SANTA ANA
RIVER TRAIL PROJECT 2 — PHASE 6 AND ADDITIONAL CONTINGENCY
Joie Edles Yanez, Capital Projects Manager, presented the Santa Ana River Trail (SART)
Project 2 — Phase 6 on the amendment to environmental and design contract, highlighting
the following:
• SART background
o RCTC has been managing the SART projects for Riverside County Regional
Park and Open -Space District (RivCo Parks) since 2015
o All costs reimbursed by RivCo Parks
o Last remaining gaps in 110 -mile trail from mountains to sea
o Equestrian, bicyclist, pedestrian ADA accessible trail
• SART — Phase 6
o Key Features
✓ 1.65 miles of trail
✓ Features two (2) bridges
1 over railroad
1 over Aliso Creek
✓ Adjacent to Green River Golf Club
✓ Construction Cost Estimate: $26.6 million
✓ Status: 90 percent Design
• SART Bridges
o Burlington North Santa Fe (BNSF) Bridge:
✓ Overhead Bridge for BNSF railroad tracks
✓ Replaces existing at -grade crossing
✓ Bridge is 180 ft long, 20 ft wide
o Aliso Canyon Creek Bridge:
✓ Pedestrian bridge over Aliso Canyon Creek
✓ Bridge will be 180 feet long, 20 feet wide
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✓ Anticipated users are pedestrians, cyclists, equestrians, golf course
maintenance
• SART history
o November 2017 — Contract with MBI for environmental and design
o January 2022 — Environmental document approved
o Early 2024 —100 percent design submittal anticipated
o Late 2024/Early 2025 — Construction
o Encountered several scope changes due to coordination with various
stakeholders
o Total of 11 Amendments to MBI's PA&ED PS&E contract
✓ Amendment 7 and 11 requested additional funding
✓ All other amendments were key personnel changes / utilized
contingency
• Changes to scope
o Changes in retaining walls for BNSF bridge after receiving submittal review
comments from BNSF
o Changes to foundation for Aliso Canyon Creek bridge after receiving
submittal review comments from Metropolitan Water District (MWD)
o Additional budget for increased coordination efforts to address concerns
with utilities and comments from project stakeholders
o Requesting additional $459,647
o RivCo Parks has concurred
• Increased contingency
o Staff performed an independent cost estimate, reviewed historical issues
resulting in increased costs and performed projections of costs to
complete and is recommending an increased contingency
o Contingency can only to be utilized when justified and authorized by Staff
and RivCo Parks
o Even with increased contingency, MBI's total contract cost for design is at
8 percent, which is less than the standard threshold being 10 percent of
the construction cost
• Fiscal impact
o Proposition 84 Grant funds provided by the State Coastal Conservancy and
secured by RivCo Parks
Commissioner James Stewart stated he is also a member of Western Riverside County
Council of Governments (WRCOG) and WRCOG is looking to form a vehicle miles traveled
(VMT) mitigation bank and asked if the Commission has looked into using projects like
this as opportunities for cities and regional commissions like this who want to do projects
to be able to contribute to in order to mitigate their VMTs.
Anne Mayer replied yes and stated they are working collaboratively with WRCOG staff as
they are developing a potential VMT mitigation bank. Staff has discussed items like trails
and pedestrian facilities Riverside Transit Agency (RTA) has also been engaged in the
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conversation about trying to fold transit in more specifically for the Commission it is
related to things like commuter bus service, and RCTC is also looking at putting land into
conservation as a VMT mitigation.
Commissioner Stewart replied that it would be great to leverage these and get them paid
for by other people.
M/S/C (Spiegel/Harnik) to:
1) Approve Agreement No. 17-67-027-11, Amendment No. 11 to Agreement
No. 17-67-027-00, with Michael Baker International (MBI) for additional
scope of services, as part of planned construction of the Santa Ana River
Trail Project (SART) 2 through Green River Golf Course (Project) in the
amount of $222,980, plus a contingency amount of $236,667, for an
additional amount of $459,647, and a total contract amount not to
exceed $2,609,259;
2) Authorize the Executive Director or designee to approve contingency
work as may be required for the Project; and
3) Authorize the Chair or Executive Director, pursuant to legal counsel
review, to finalize and execute the agreement on behalf of the
Commission.
10. SENATE BILL 125 FORMULA -BASED FUNDING FOR THE TRANSIT AND INTERCITY RAIL
CAPITAL PROGRAM AND ZERO EMISSION TRANSIT CAPITAL PROGRAM
Lorelle Moe -Luna, Multimodal Services Director, presented the SB 125 Formula -Based
Funding for the Transit and Intercity Rail Capital Program (TIRCP) and Zero Emission
Transit Capital Program (ZETCP) update, highlighting the following areas:
• Background
o 2023 State Budget trailer bills: one-time formula funding
✓ $4 billion of general fund to TIRCP over 2 years
✓ $910 million of cap -and -trade funds and $190 million from the
Public Transportation Act to ZETCP over 4 years
o Administered by CaISTA
• SB 125 Program objectives
o Reduce greenhouse gas emissions
o Expand and improve transit service to increase ridership
o Integrate the rail service of the state's various rail operations
o Improve transit safety
• SB 125 process
o CaISTA established program guidelines
o Eligible projects
✓ Transit/rail operations and capital
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✓ Grade separations and rail crossing improvements
o All funding distributed to RTPAs such as RCTC for allocation
o Submit recommendations to CaISTA by Dec 31, 2023
o Recommendations based on RCTC goals, plans, and priorities
• SB 125 RCTC available funding
• A list of the Zero Emission and Transit Capital Projects
• A map of the Transit Projects
• A list of Passenger Rail Project Development
• A map of the Rail Projects
• Distribution of funds
• Distribution of funds by subregion
M/S/C (Gregory/Smith) to:
1) Approve the funding recommendations in Attachment 1 for the Senate
Bill 125 (SB 125) Formula -Based Funding for the Transit and Intercity Rail
Capital Program (TIRCP) and Zero Emission Transit Capital Program
(ZETCP) for Fiscal Year 2023/24;
2) Direct staff to prepare and execute funding agreements with the project
sponsors to outline the project schedule and local funding commitments;
3) Authorize the Executive Director to execute the funding agreements with
the project sponsors, pursuant to legal counsel review;
4) Approve an amendment to the FY 2023/24 budget to receive the first -
year allocations of TIRCP and ZETCP formula funds in the amounts of
$123,382,700 and $14,828,290, respectively; and
5) Approve a FY 2023/24 budget adjustment of $791,214 for expenses
related to the TIRCP and ZETCP formula funds.
11. SOUTHERN CALIFORNIA ASSOCIATION OF GOVERNMENTS CORRECTIVE ACTION FOR
FEDERAL FORMULA FUNDS
Jillian Guizado, Planning and Programming Director, presented the Southern California
Association of Governments (SCAG) corrective action for federal formula funds update,
highlighting the following areas:
• Introduction
• The SCAG region
• Available funds - Surface Transportation Block Grant (STBG) and Congestion
Mitigation Air Quality (CMAQ)
• Recommendation levels as approved by RCTC Budget and Implementation (B&I)
Committee
• Second Criteria for the highly recommended level that would give Coachella Valley
the opportunity to achieve the maximum points
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• RCTC process — Step 1: Intake Form; Step 2: Full nomination application; Step 3:
Forward nominations to SCAG
• SCAG evaluation criteria
• Schedule highlights
• Not a lot to go around
Chair Magee noted that Commissioner V. Manuel Perez provided a letter to Anne Mayer
on December 12 and copies were distributed to the Commissioners at the dais.
Erica Felci, representing CVAG, reiterated the message provided to the Commissioners as
Attachment 3 in the agenda packet and a letter from CVAG's Executive Director Tom Kirk.
The first ask is about this first call for projects and the language Jillian Guizado outlined to
include the LTCAP project from the CVAG TPPS into the highly recommended category.
Last week the California Transportation Commission (CTC) awarded $50 million for the
Indian Canyon Project in the Coachella Valley (CV) and are looking to leverage that as part
of the highly recommended. CVAG's second ask is CVAG has a formal commitment from
RCTC to work together to amend these procedures for future rounds. They need rules to
share equitable access to fair competition and the rules are not written to favor a project
and any future rules need to be in line with the MOU all the agencies agreed with. She
then discussed how a few years ago at a CTC meeting they lost almost $125 million for CV
Link over just four points.
Commissioner V. Manuel Perez expressed appreciation for a thorough report and to
CVAG, Erica Felci, and the team for their efforts in trying to ensure moving forward with
projects in Riverside County; the issue of equity is front and center. He is requesting an
amendment to include the TPPS projects and there be future discussions to ensure
collaboration continues. He does not see any type of entity throughout the state of
California that looks like this Commission, works like this Commission, gets the job done
like this Commission, and the reason for that is they have managed to overcome the
challenges they have had in the past and ultimately, they win. He asked staff to respond
to that or to the CVAG letter sent on December 4, 2023, or to his letter, or to his
colleague's questions that may be coming up as well.
Anne Mayer expressed appreciation to Commissioner Perez for highlighting the
relationships in Riverside County and how much they have been able to accomplish over
her 18 years as the RCTC Executive Director; noting she takes great pride into those
relationships and accomplishments. This program was approved by SCAG this summer as
a limited call for projects of only $275 million. She assured that the next call for projects
will be different; it will likely have the performance criteria SCAG is using to measure
projects. They are pleased SCAG allowed the regional transportation planning agencies
to be engaged and have the chance to prioritize projects within their county. The
discussions between RCTC staff and CVAG staff have also rounded the conversation about
the challenges from an RCTC staff standpoint with moving the TPPS program in its entirety
to the highly recommended category. If the Commission wants to move the TPPS projects
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into the highly recommended, staff suggests moving the Western County Transportation
Uniform Mitigation Fee (TUMF) program into the highly recommended. She discussed
the issues if RCTC is not prioritizing projects within their county and how this Commission
has to set up criteria. RCTC's past practice demonstrates how sincere staff is with this as
they have always looked at equity throughout the county and geographic balance. She
referred to Agenda Item 10 on the agenda and the percentage that went to benefit the
CV which has been demonstrated over again. Staff asked CVAG staff what they want to
put in the highly recommended category and RCTC staff put in what they asked for and
Indian Canyon will be a highly competitive project.
Chair Magee requested to display slide 6 that includes the project list.
Commissioner Steven Hernandez expressed appreciation to RCTC staff and Anne Mayer
because they are trying to get the Commission some money and score well. The ask is
two -fold; one they look at Indian Canyon Project to put into the highly recommended and
second is to come back and look at a process that they would not include the whole TPPS
program. He requested they work with the CV to come up with a formula or come up
with the best projects that will score well. He stated change is hard but from an equity
and a fairness standpoint that the next round staff will allow them locally to submit a
project that will compete.
Anne Mayer replied other counties are not using programmatic categories; they are not
giving a general any project in any plan, which is basically what the Commission is saying
any project in the TPPS, any project in Western County TUMF, any project in the Measure
A 10 -Year Delivery Plan is eligible. Other counties are using performance measures to
screen projects related to greenhouse gas reduction and VMT reduction. She concurred
that other counties are allowing any project to compete but are screening by using
performance measures and next time that is probably the way this Commission will need
to do it. There are key priority projects throughout the County that have been designated
as priorities by their communities, RCTC, or CVAG that need money and one of staff's
original suggestions is they include as highly recommended projects that already have
federal funding that need cost increases. The other issue is the MOU between RCTC and
CVAG as these programs are no longer about formulas there are no more formulas. She
hears the concerns about fair share but if the Commission starts adopting formulas within
the county the Commission would be in violation of federal guidance.
Commissioner Matas concurred with the Commissioners comments and supports RCTC
staff in what they are saying. As the CVAG Chair this year and he has been on this
Commission for 15 years has always trusted RCTC staff and CVAG staff on coming together
with a plan and believes the Commissioners concurred this model needs to change. He is
committed that he and the CVAG Executive Director will come up with a plan for a priority
of projects in CV on the TPPS plan and clarified with Anne Mayer that it needs to qualify
with federal funding to be competitive for these types of projects. He supports
Commissioner Perez's comments as the TPPS would be important to move up to the
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highly recommended, but it would need to be fair with WRCOG. He concurred with the
current recommendations, but he does want to see the model change.
Commissioner Speake expressed appreciation for getting into so much detail and
understands the CV Commissioners' concerns and concurred that everyone should have
an opportunity to compete. However, he concurred with Anne Mayer as they need to
make sure they put the best projects in front and this Commission has worked well
together to try to cross these lines, as arbitrary as they are sometimes. He suggested the
Commission go forward with the best opportunity to capture as much as possible from
their state partners and for the Commission to move forward with Anne Mayer's plan.
Commissioner Harnik expressed appreciation for all the hard work on this and for making
it much easier to absorb. She represents SCAG and they take tremendous pride in taking
any policy or planning effort to build it from the ground up. She expressed appreciation
that SCAG did a good job with this by making sure their CTCs have a voice in how this
works. There has been discussion the Indian Canyon project has become highly
recommended because it would qualify. It is a community that gets isolated and Indian
Canyon is one more example of that occurring. In talking about the TPPS program they
have come up with a solution with the Indian Canyon project but they need to make sure
the Commission has an amendment going forward that CVAG, RCTC, and WRCOG will
work together to come up with a procedure that guarantees the highest level social
economic equity geographic equity to put forth their best projects and they know that
through the Traffic Relief Plan there are projects throughout this county that need to be
built. She suggested they need to amend this motion to state they will get together to
work out a policy procedure that benefits everybody throughout the County.
Commissioner Perez expressed appreciation for the points being made and concurred this
is going to require their staffs to get together to discuss short term, mid-term and long-
term solutions and what the process is going to look like in ensuring success for everyone.
He understands and accepts that amendment and asked unless folks in the city of Desert
Hot Springs or in the west valley do not think their Indian Canyon project should be a part
of this first phase as he felt it should be. He wanted that to be considered as another
piece of this amendment and thanked Commissioner Gregory for the work he did at the
B&I Committee meeting in identifying the difference to have this type of conversation
that needed to be had.
Commissioner Waymond Fermon concurred with the Commissioners' comments and
stated he was five minutes late because it took him two hours to get to downtown
Riverside from Indio. That speaks to the growth in the future and for the Commissioners
in the valley to be competitive moving forward with these funds although some of the
other projects in Western Riverside County are important as well. With growth comes
more cars, traffic, gridlock, and they are getting there in the valley, and he supports those
amendments and performance measures moving forward. As Commissioner Perez noted
they have to pivot equitably as well because it is not just down in the CV it is folks in Blythe
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and in Mecca and Thermal. The challenges that city of Desert Hot Springs faced during
the storms they also faced on the 1-10 corridor, and they cannot afford for that to happen
again. He appreciates the collaborative approach this Commission, staff, and Anne Mayer
have shown in the past and they hope moving forward they continue collaborating to put
the best projects forward.
Commissioner Clint Lorimore expressed appreciation for the discussion on this item; it is
critical they weigh in as a Commission and they need to prioritize because it is only $33
million. In looking at some of the previous items put forward today this is a very small
amount in comparison, so they need to be very strategic in what they put forward. There
has been this change from the federal government in their rules related to these dollars
and it is unfortunate, but this is the first call for projects. Riverside County is a very big
county geographically as well population -wise, but when talking about equity they are 2.5
million people as a county and in the CV there is 500,000 people approximately. If they
are being equitable to population then it should be in Western Riverside County but there
is a need to continue to work together and put forward something that is strategic as a
recommendation to SCAG.
Commissioner Gregory clarified they were not asking to downgrade the projects originally
recommended, they were asking if they have other projects in the County that will score
highly. The discussion that occurred at B&I Committee meeting was not to add in all the
projects that anybody had proposed in the County and appreciated the compromise that
has been put forward. He stated if the Commission has a limited number of high -quality
projects, they should allow them to move forward regardless of what region of the County
they are from. He sees the compromise that was proposed that is on the screen now and
understands as this has already been expressed this is a formula that will be revisited with
all the affected stakeholders. He then moved to adopt the recommendation that is on
the screen which includes the CVAG compromise.
Commissioner Middleton concurred with Commissioner Gregory's comments and
seconded the motion.
In response to Commissioner Spiegel's clarification all TPPS projects, not just the Indian
Canyon project was added after the B&I Committee meeting understanding they do have
a limit of $33 million of that pie, Anne Mayer replied no, they no longer have a fair share.
If they go on past shares, it is usually about 12 percent so Jillian Guizado was trying to
frame for the Commissioners what a likely target might be, but they could get zero or they
could get $200 million. If CV Rail was at a point where it would be eligible it would go up
against any project anywhere in the six counties, but they do not have a share that is
guaranteed. This is a very small call for projects the next call for projects that SCAG has
will be over $1 billion and clarified with Jillian Guizado. Jillian Guizado replied if congress
authorizes it will be over $1 billion.
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Anne Mayer clarified the amount for the next call for projects could be over $1 billion and
it is staff's intent they need to start ramping up now to set up their internal county
structure to go after that money as competitively as possible.
In response to Commissioner Spiegel's clarification that they have now put all CVAG TPPS
in, Jillian Guizado replied yes, they are under the 40 points which is under the
recommended category. In response to Commissioner Spiegel's question if it is just Indian
Canyon project under the 50 points, Jillian Guizado replied yes.
Anne Mayer clarified every member agency of RCTC, every transit agency, and every tribal
partner within the County can submit any project they want to this process. This is not
limiting which projects can be submitted it is merely allocating specific points to highly
recommended, recommended, and contingency list projects. The top category has two
categories; one in Western County and one in the CV and there is one project in the CV
that would be in that category and in Western County there is one project that is in the
delivery plan Groups 1 and 2 category. Both Western County and the CV will likely have
one project submitted that gets those 50 points.
Commissioner Perez clarified he heard from his colleagues they want to go with staff
recommendation, which he concurred and that it includes the Indian Canyon project and
second it includes there are conversations moving forward between CVAG, RCTC, and
WRCOG to make it happen in the future so they can all win. Anne Mayer replied yes to
both. Commissioner Perez stated he supports the amended recommendation.
Commissioner Harnik clarified regarding the recommendation they are taking the Indian
Canyon project and she thanked everyone for their thoughts and patience on this. She
reiterated they heard what they may get if congress decides to, and they know what
happens with budgets there are no guarantees. She clarified when they are saying they
are going to support the recommendation she does not see in it where it directs RCTC and
CVAG staff to work together to evaluate the program and revise the procedures for future
cycles and requested to have that as an amendment to the motion.
Anne Mayer replied those specific words are not in the staff recommendation in the staff
report they do indicate they would recommend changing the process for the next round
and historically they have always collaborated on setting up these processes.
Commissioner Harnik stated she knows they have always worked together throughout
the County, and they see that in the great projects that have been developed. She would
like to nonetheless offer this amendment and asked if it is acceptable.
Commissioner Gregory replied as the maker of the motion would accept that except, he
would ask it to be RCTC work with all stakeholders in determining the next round.
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Anne Mayer clarified that is always what they do and expressed appreciation to have that
as part of the motion.
Commissioner Chuck Washington expressed appreciation to Commissioner Gregory for
his last comments and stated in the interest of fairness in looking at regions sometimes
they get bogged down with the titles and labels on groups.
Chair Magee clarified they have an amended motion and a second, the amendment is to
direct staff to work with all affected member agencies moving forward.
M/S/C (Gregory/Middleton) to:
1) Approve the RCTC Procedures for the Southern California Association of
Governments (SCAG) 2024 Call for Project Nominations (nomination
procedures);
2) Authorize the Executive Director to submit to SCAG the project
nomination list based on the nomination procedures;
3) Approve Agreement No. 24-66-041-00, a Memorandum of
Understanding (MOU) with SCAG;
4) Authorize the Chair or Executive Director, pursuant to legal counsel
review, to execute the agreement on behalf of the Commission; and
5) Direct staff to work with all affected member agencies moving forward.
12. ELECTION OF RIVERSIDE COUNTY TRANSPORTATION COMMISSION OFFICERS
Chair Magee opened the nominations for the election of officers for 2024 for Chair, Vice
Chair, and Second Vice Chair and stated they can open this up for individual nominations
or make a block motion for all three officer positions.
Commissioner Molina nominated Commissioner Lloyd White for Chair, Commissioner
Karen Spiegel for Vice Chair, and Commissioner Brian Berkson for Second Vice Chair.
Chair Magee clarified Commissioner White for Chair, Commissioner Spiegel for Vice Chair,
and Commissioner Berkson for Second Vice Chair.
Commissioner Reed made a substitute motion and nominated Commissioner White for
Chair, Commissioner Spiegel for Vice Chair, and Commissioner Gregory for Second Vice
Chair.
Commissioner Harnik seconded the motion.
Commissioner Krupa seconded Commissioner Molina's motion. No other nominations
were received.
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Chair Magee clarified there are two competing nominations and referred to Lisa Mobley,
Director of Administrative Services/Clerk of the Board to announce how to move forward.
Lisa Mobley replied the Commission's Administrative Code states if there are two
nominations, she would do a roll call vote and the Commissioners would cast their vote
for either of the nominees.
Commissioner Spiegel discussed how the Commissioners have been trying to rotate and
allow east and west to be represented. She suggested Commissioner Gregory would be
a perfect addition and explained every other year a supervisor had to be chair and as a
city council member at the time, she felt it should not be that way and it did get changed.
Now it is the Supervisor, east, and west is how they try it does not always happen but that
is what their goal is.
Vice Chair White stated that often the city of Beaumont and the Pass Area in general is
placed in the western county and they have lots of common interests in the eastern
county, so he takes issue with that as Beaumont is in the middle and they have issues on
both sides. He concurred with Commissioner Spiegel and will be supporting
Commissioner Gregory for Second Vice Chair.
Commissioner Washington suggested instead of relying on their recollections they should
adopt a policy that outlines exactly what they are going to vote for and who is entitled.
He has a busy year coming up as Chair for the Board of Supervisors and thoroughly enjoys
the work he does for the County and appreciates RCTC, and the Commissioners. He has
not decided who he is going to vote for.
Anne Mayer stated Commissioner Spiegel mentioned when RCTC changed its
Administrative Code, which is the Administrative Code that governs this organization the
only requirement in the Administrative Code is that there has to be one city
representative and one supervisor so those are the two criteria they as a commission
follow. Since that Administrative Code has been adopted it has always been consistent
with that and the taking turns back and forth between the eastern county and the western
county is an informal practice that sometimes it is followed.
In response to Commissioner Conder's clarification regarding both motions, Lisa Mobley
replied that the nominees for Second Vice Chair are Raymond Gregory and Brian Berkson,
the nominee for Chair is Lloyd White for Vice Chair it is Karen Spiegel.
Lisa Mobley stated she will call their name to register a yay or a nay for the nominees and
then indicate either Berkson or Gregory for second vice chair. After the votes were tallied,
Lisa Mobley announced there were 11 votes for Commissioner Berkson and 20 votes for
Commissioner Gregory for Second Vice Chair.
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Chair Magee closed the nominations. Lloyd White was elected as the Commission's Chair,
Karen Spiegel as Vice Chair, and Raymond Gregory as Second Vice Chair for 2024.
13. ITEM(S) PULLED FROM CONSENT CALENDAR FOR DISCUSSION
There were no items pulled from the Consent Calendar.
14. EXECUTIVE DIRECTOR'S REPORT
Anne Mayer announced:
• She has always admired this Commission's ability to have difficult conversations
and make difficult decisions but do so with the best interest of the region and that
is very much appreciated as their staff.
• At the CTC meeting on December 6-7, 2023, there was an item on the agenda for
San Bernardino County Transportation Authority's (SBCTA) 1-15 NEXT Project; it
was a $202 million allocation of State Transportation Improvement Program
funding local program funding and Trade Corridor Enhancement Program funding
that project had been approved by the CTC to be funded out of all those programs
and the vote for the allocation of funding to that project failed. SBCTA is ready to
go to construction on a critical infrastructure project and the reason cited were
VMT induced travel demand, a highway project should not be going forward in
any state program, and RCTC will work with their partners at SBCTA to offer any
support they can. This will be reheard at the end of January 2024 in Modesto so
staff will keep everyone posted. This is the first significant demonstration that
several CTC Commissioners could decide to vote no on something that has been
programmed in an approved program.
• She is very privileged to announce that the Executive Committee executed a
contract with their next Executive Director Aaron Hake effective on May 2, 2024,
and congratulated him. She thanked the Executive Committee for their wise
decision and is grateful to Aaron Hake as he is going to be a terrific leader leading
RCTC into the next generation.
15. COMMISSIONER COMMENTS
15A. Commissioner Jeffries stated regarding Anne Mayer's comment about the CTC no
longer representing transportation it suddenly makes former Supervisor Jeff
Stone's idea of a split of state of California look reasonable.
15B. Commissioner Spiegel asked Anne Mayer if there is value if the Commissioners
and the other counties write letters of support.
Anne Mayer replied absolutely, they have already coordinated with SBCTA, and
they want to follow their lead. Aaron Hake and Ray Wolfe, SBCTA Executive
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Director, met with Senator Richard Roth on December 12; Senator Roth is
engaging as part of this is in Riverside County. Those conversations have already
started, and letters will be appropriate it is also possible there could be some
people going to Modesto to testify in person, and the CTC Commission meeting is
on the same day as the Commission Annual Workshop. The CTC takes testimony
remotely there will be a coordinated effort and it will involve many organizations
and entities in Riverside County both from letter writing and reaching out to
representatives so stay tuned.
Commissioner Spiegel wished everyone Happy Hanukkah, Merry Christmas, and a
good New Year.
15C. Commissioner Speake referred to Anne Mayer's comments about the CTC and
stated he met Chair Lee Ann Eager and Commissioner Hilary Norton at the 91/15
Express Lanes Connector Ribbon Cutting and thanked them for being there and
for considering approval of a project on the 1-15 that Caltrans put up and he
thanked Catalino Pining Governor's Appointee Caltrans District 8. He watched
online when the SBCTA project was denied and suggested they go back and listen
to the arguments that are put forward on why projects the Commissioners would
have considered five years ago at this level to be approved are now being
scrutinized. He thanked Commissioner Spiegel for asking about the opportunity
to write support letters because if it does not happen this will be a change in what
the Commission does and what they decide.
15D. Commissioner Molina expressed appreciation to her colleagues for the discussion
on these important issues as it has been a learning experience. She congratulated
Commissioner Gregory as both candidates are excellent and are fortunate to have
them both on this Commission. She wished everyone a safe holiday season.
15E. Commissioner Conder thanked Anne Mayer and all her staff that worked so hard
to get the 91/15 Connector for the express lanes done, great celebration for it and
another project that was done in time and within budget.
15F. Vice Chair White thanked Anne Mayer, Aaron Hake, and the rest of the RCTC staff
who showed up for a workshop last week with their community it was a great
opportunity for the members of the community to speak out regarding the Traffic
Relief Plan and suggested to set up a visit with Anne Mayer to go to their
community.
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16. CLOSED SESSION
16A. CONFERENCE WITH LEGAL COUNSEL: EXISTING LITIGATION
Pursuant to Government Code Section 54956.9 (d)(1)
Case No(s). CVR12205120
There were no announcements from the Closed Session.
Chair Magee wished everyone a blessed Holiday Season.
17. ADJOURNMENT
There being no further business for consideration by the Riverside County Transportation
Commission, Chair Magee adjourned the meeting at 11:33 a.m. The next Commission
meeting is scheduled to be held at 9:30 a.m. on Wednesday, January 10, 2024.
Respectfully submitted,
Lisa Mobley
Administrative Services Director /
Clerk of the Board
20
AGENDA ITEM 6B
RIVERSIDE COUNTY TRANSPORTATION COMMISSION
DATE:
January 10, 2024
TO:
Riverside County Transportation Commission
FROM:
Audit Ad Hoc Committee
Sergio Vidal, Chief Financial Officer
THROUGH:
Anne Mayer, Executive Director
SUBJECT:
Fiscal Year 2022/23 Commission Audit Results
AUDIT AD HOC COMMITTEE AND STAFF RECOMMENDATION:
This item is for the Commission to:
1) Receive and file the Fiscal Year 2022/23:
a. Annual Comprehensive Financial Report (ACFR);
b. Local Transportation Fund (LTF) Financial and Compliance Report;
c. State Transit Assistance (STA) Fund Financial and Compliance Report;
d. State of Good Repair (SGR) Fund Financial and Compliance Report;
e. Proposition 1B Rehabilitation and Security Project (Proposition 1B) Accounts
Financial and Compliance Reports;
f. Low Carbon Transit Operations Program (LCTOP) Account Financial and
Compliance Reports;
g. Single Audit Report;
h. RCTC 91 Express Lanes Fund Financial Report;
15 Express Lanes Fund Financial Report;
j. Debt Compliance Report;
k. Auditor Required Communications Report;
Agreed -Upon Procedures Report related to the Appropriations Limit Calculation;
m. Agreed -Upon Procedures Report related to the Commuter Assistance Program
(CAP) incentives; and
n. Management certifications.
BACKGROUND INFORMATION:
In March 2020, the Commission approved an agreement with Eide Bailly LLP (Fide Bailly) to
perform annual audits and agreed -upon -procedures for the following Commission financial
statements and related programs:
Audits - ACFR; RCTC 91 Express Lanes; 15 Express Lanes; Federal Awards (Single Audit)
Financial and compliance audits - LTF, STA, SGR, Proposition 1B, and LCTOP
Agenda Item 6B
21
Agreed upon procedures (AUP) - Annual Appropriations Limit Calculation; CAP incentives;
Compliance with commercial paper debt covenants.
The audits, compliance and agreed -upon procedures for the fiscal year ended
June 30, 2023, have been completed, and Eide Bailly issued all reports.
The Commission's ACFR or annual financial statements consists primarily of three sections:
introductory, financial, and statistical. While the introductory and statistical sections were not
audited by Eide Bailly, the financial section included basic financial statements which auditing
procedures were performed by Eide Bailly. The Commission received an unmodified opinion or
clean opinion on its basic financial statements from Eide Bailly, which is the highest form of
assurance. Limited procedures were performed related to the required supplementary
information, including Management's Discussion and Analysis section; such information was not
audited. The other supplementary information was subject to the auditing procedures applied
in the audit of the basic financial statements, and, in the opinion of the auditors, it is fairly stated
in relation to the basic financial statements.
The basic financial statements include government -wide financial statements, fund financial
statements, and notes to the financial statements. Management's Discussion and Analysis
section provides a narrative overview and analysis of the Commission's financial activities for the
fiscal year. Financial highlights and significant matters of the basic financial statements include:
• Net position of approximately $1,188.5 million at June 30, 2023, compared to
approximately $948.8 million at June 30, 2022, reflects a net increase of approximately
$239.7 million from governmental and business -type activities. This increase is largely
due to funding contributions received for a highway connector project and continued
robust economic activity in the County highlighted by strong Measure A and
Transportation Development Act (TDA) taxes.
• The net increase in net position consists of approximately $269.2 million from
governmental activities offset by a deficit of ($29.5) million from business -type activities.
The deficit within the business -type activities is largely associated with projected
expenditures for the 15/91 Express Lanes Connector project funded with accumulated 91
Express Lanes surplus revenues. Increases in governmental activities is due to higher than
anticipated investment income, sales and Transportation Development Act taxes, along
with capital grant contributions from the State for the 15/91 Express Lanes Connector
project.
• Governmental fund balances of approximately $1,271.2 million at June 30, 2023,
compared to approximately $1,104.6 million at June 30, 2022, represent an increase of
approximately $166.6 million from the prior year.
Agenda Item 6B
22
The audit reports related to the separately issued financial statements of the LTF, STA, SGR,
Proposition 1B, and LCTOP also reflect unmodified opinions from Eide Bailly. These financial
statements are required to be issued separately under the TDA and the provisions for Proposition
1B and LCTOP; however, the LTF, STA, and SGR financial position and operations are included in
the fund financial statements in the ACFR. The Proposition 1B and LCTOP financial position are
part of the Measure A Western County Commuter Rail special revenue fund. These reports noted
no matters considered to be a material weakness in internal control and no instances of
noncompliance.
The FY 2022/23 Single Audit Report includes the reports on compliance and internal control over
financial reporting and over federal awards. These reports noted no matters considered to be a
material weakness in internal control and no instances of noncompliance.
The RCTC 91 Express Lanes Financial Report consists of the Independent Auditors' Report,
Management's Discussion and Analysis, and Financial Statements, including Notes to Financial
Statements. Financial highlights include a net deficit of approximately ($333.2) million, which
consisted of:
• Net investment (deficit) in capital assets of approximately ($381.3) million reflecting
toll -supported debt in excess of capital assets; and
• Restricted net position of approximately $48.1 million for toll operations in accordance
with debt indentures and agreements.
The deficit in net investment in capital assets will be reduced by future toll revenues for the
payment of outstanding toll debt obligations.
The 15 Express Lanes Financial Report consists of the Independent Auditors' Report,
Management's Discussion and Analysis, and Financial Statements, including Notes to Financial
Statements. Financial highlights include a net position of approximately $262.7 million, which
consisted of:
• Net investment in capital assets of approximately $204.5 million reflecting
capital assets in excess of toll -supported debt; and
• Restricted net position of approximately $58.2 million for toll operations in accordance
with debt indentures and agreements.
As a result of the establishment of the commercial paper program in March 2005, the bank
reimbursement agreement requires a report from the auditor regarding compliance with certain
covenants. The report issued by Eide Bailly indicated that nothing came to the auditor's attention
that caused the auditors to believe the Commission failed to comply with these covenants.
The Appropriations Limit Calculations and CAP reports are based on specific procedures agreed
to by the Commission. For the Appropriations Limit Calculation and CAP, the auditors noted no
exceptions or findings related to the procedures performed.
Agenda Item 6B
23
A management letter usually includes recommendations for improvements and operational
efficiencies related to internal control and other matters noted during the audit. Eide Bailly did
not identify a significant deficiency, or a material weakness related to internal control. However,
it did provide a comment/observation related to an agreement established within the RCTC
financial system. Specifically, the Finance department will work with Program staff to ensure
accurate and detailed information is communicated within internal documents including but not
limited to funding agreements.
As required by American Institute of Certified Public Accountants Auditing Standards Board
Statement No. 114, The Auditor's Communications with Those Charged with Governance, the
Commission's auditor is required to make certain annual communications to the Commission's
Audit Ad Hoc Committee, or its equivalent, regarding the audit of the Commission's financial
statements following the completion of the audit. Eide Bailly completed the annual audit for
FY 2022/23 in October 2023. The report to the Audit Ad Hoc Committee from the auditor
contains the required communications about the audit.
As part of the development of the Commission's Accountability Program, both the Executive
Director and Department Directors have completed certifications relating to financial reporting
and operational disclosures.
Attachments:
1) 2023 Annual Comprehensive Financial Report
2) 2023 Local Transportation Fund Financial and Compliance Report
3) 2023 State Transit Assistance Fund Financial and Compliance Report
4) 2023 State of Good Repair Fund Financial and Compliance Report
5) 2023 Proposition 1B Rehabilitation and Security Project Accounts Financial and
Compliance Reports
6) 2023 Low Carbon Transit Operations Program Account Financial and Compliance Reports
7) 2023 Single Audit Report
8) 2023 RCTC 91 Express Lanes Fund Financial Report
9) 2023 15 Express Lanes Fund Financial Report
10) 2023 Commercial Paper Compliance Report
11) 2023 Management Letter
12) 2023 Reports to the Audit Ad Hoc Committee (Financial Statements Audit and Single
Audit)
13) 2023 Agreed -Upon Procedures Report related to the Appropriations Limit Calculation
14) 2023 Agreed -Upon Procedures Report related to the Commuter Assistance Program
incentives
15) 2023 Executive Director and Chief Financial Officer Certification
16) 2023 Director's Certification
17) Auditor's Presentation to the Audit Ad Hoc Committee
Agenda Item 6B
24
...reVItt.m .JANIS
26
28
CONTENTS
Introductory Section
Letter of Transmittal
Organization Chart x
List of Principal Officials and Management Staff xii
Financial Section
Independent Auditor's Report 1
Management's Discussion and Analysis 5
Basic Financial Statements
Government -wide Financial Statements
Statement of Net Position 24
Statement of Activities 25
Fund Financial Statements
Governmental Funds
Balance Sheet —Governmental Funds 26
Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Position 29
Statement of Revenues, Expenditures and Changes in Fund Balances
—Governmental Funds 30
Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances
of Governmental Funds to the Statement of Activities 33
Proprietary Fund
Statement of Fund Net Position 34
Statement of Revenues, Expenses and Changes in Fund Net Position 35
Statement of Cash Flows 36
Notes to Basic Financial Statements 38
Required Supplementary Information
Budgetary Comparison Schedules
General Fund 86
Major Special Revenue Funds 87
Schedule of Proportionate Share of Net Pension Liability 90
Schedule of Pension Contributions 91
Schedule of Changes in the Net OPEB Liability (Asset) and Related Ratios 92
Schedule of OPEB Contributions 93
Notes to Required Supplementary Information 95
Other Supplementary Information
Nonmajor Governmental Funds
Combining Balance Sheet 100
Combining Statement of Revenues, Expenditures and Changes in Fund Balances 102
29
Contents, Continued
Financial Section, Continued
Schedule of Revenues, Expenditures and Changes in Fund Balances —Budget and Actual:
Nonmajor Special Revenue Funds 104
Capital Projects Funds 108
Debt Service Fund 109
Schedule of Expenditures for Local Streets and Roads by Geographic Area—AII Special
Revenue Funds 110
Schedule of Expenditures for Transit and Specialized Transportation by Geographic Area and
Source —All Special Revenue Funds 111
Schedule of Uses of Debt Proceeds and Fund Balances 112
Statistical Section
Statistical Section Overview 113
Primary Government Net Position by Component 114
Changes in Primary Government Net Position 116
Fund Balances of Governmental Funds 120
Changes in Fund Balances of Governmental Funds 122
Sources of County of Riverside Taxable Sales by Business Type 124
Direct and Overlapping Sales Tax Rates 126
Principal Taxable Sales Generation by City 127
Measure A Sales Tax Revenues by Program and Geographic Area 128
Measure A Sales Tax by Economic Category 129
Measure A Revenues and Pledged Revenue Coverage 130
Ratios of Outstanding Debt by Type 132
Computation of Legal Debt Margin 134
Demographic and Economic Statistics for the County of Riverside 136
Employment Statistics by Industry for the County of Riverside 137
Full-time Equivalent Employees by Function/Program 138
Operating Indicators 140
Capital Asset Statistics by Program 143
30
40.
A FASTRAK ONLY EXPRESS LANES
11
NOW OPEN
FASTRAK REQUIRED
RIVERSIDEEXPRESS.COM
•
RIVERSIDE
COUNTY
TRANSPORTATION
COMMISSION
Introductory
Section
NOI1D3S A2JO1Df1GO2I1Nl
31
RIVERSIDE
COUNTY
TRANSPORTATION
COMMISSION
October 31, 2023
4080 Lemon Street, 3rd Floor • Riverside, CA
Mailing Address: P. O. Box 12008 • Riverside, CA 92502-2208
(951) 787-7141 • Fax (951) 787-7920 • www.rctc.org
To the Riverside County Transportation Commission Commissioners
and Citizens of the County of Riverside:
Letter of Transmittal
State law requires that the Riverside County Transportation Commission (Commission or RCTC) publish
within six months of the close of each fiscal year a complete set of financial statements presented in
conformity with accounting principles generally accepted in the United States (GAAP) and audited in
accordance with generally accepted auditing standards by independent certified public accountants.
Pursuant to that requirement, we hereby issue the Annual Comprehensive Financial Report(Annual Report)
of the Commission for the fiscal year ended June 30, 2023.
Management assumes full responsibility for the completeness and reliability of all of the information
presented in this report, based upon the Commission's comprehensive framework of internal controls
established for this purpose. Because the cost of internal control should not exceed anticipated benefits,
the objective is to provide reasonable, rather than absolute, assurance that the financial statements are free
of any material misstatements.
Eide Bailly LLP has issued an unmodified opinion on the Commission's financial statements for the year
ended June 30, 2023. The independent auditor's report is located at the front of the financial section of
this report.
Management's Discussion and Analysis (MD&A) immediately follows the independent auditor's report
and provides a narrative introduction, overview, and analysis of the basic financial statements. MD&A
complement this letter of transmittal and should be read in conjunction with it.
Profile of RCTC's Governance and Responsibilities
State law established the Commission in 1976 to oversee the funding and coordination of all public
transportation services within the county of Riverside (County). The Commission's mission is to assume
a leadership role in improving mobility in Riverside County and to maximize the cost effectiveness of
transportation dollars in the County. The governing body is the Board of Commissioners (Board), which
consists of all five members of the County Board of Supervisors, one elected official from each of the
County's 28 cities, and one non -voting member appointed by the Governor.The Commission is responsible
for setting policies, establishing priorities, and coordinating activities among the County's various
transportation operators and agencies. The Commission also programs and/or reviews the allocation of
federal, state, and local funds for highway, transit, rail, non -motorized travel (bicycle and pedestrian), and
other transportation activities. The Commission has developed two express lanes projects; the RCTC 91
Express Lanes opened in March 2017, and the 15 Express Lanes opened in April 2021.
The Commission also serves as the tax authority and implementation agency for the voter -approved
Measure ATransportation Improvement Program, which imposes a half -cent sales tax to fund transportation
improvements. Originally approved in 1988 (1989 Measure A), Riverside County's voters in 2002 approved
a 30 -year extension of Measure A commencing July 1, 2009 through June 30, 2039 (2009 Measure A).
The Commission is also legally responsible for allocating Transportation Development Act (TDA) funds,
the major source of funds for transit in the County. The TDA provides two major sources of funding:
Local Transportation Fund (LTF), which is derived from a one -quarter cent state sales tax, and State Transit
Assistance, which is derived from the statewide sales tax on gasoline and diesel fuel.
Jurupa 1115.—..„.Valley
Eastvale Riverside
Norco
Corona
Lake
Elsinore
Moreno
Valley
Perris
Canyon
Lake
Wildomar
Murrieta
Palm
Springs
Calimesa
Desert Hot Springs
Beaumont
Banning
San
Jacinto
Menifee Hemet
Temecula
Cathedral
City
Rancho
Mirage Palm
Desert
Indian
Wells
La Duinta
Blythe
Indio
Coachella
Additionally, as the Service Authority for Freeway Emergencies (SAFE), the Commission provides motorist
aid services designed to enhance safety and traffic flow. These services include emergency call boxes
along rural highways and the Freeway Service Patrol (FSP), a roving tow truck service to assist motorists
with disabled vehicles on the main highways of the County during peak rush hour traffic periods. The
motorist aid program also includes the operation of the Inland Empire 511 (1E511) system which provides
comprehensive real time traveler information for freeways, bus and rail transit, and rideshare services.
All services are provided at no charge to motorists and are funded through a $1 surcharge on vehicle
registrations; FSP also receives state allocations. The Commission is financially accountable for SAFE, a
legally separate entity that is blended within the Commission's financial statements.
Finally, the Commission has been designated as the Congestion Management Agency (CMA) for the
County. As the CMA, the Commission coordinates with local jurisdictions in the establishment of congestion
mitigation procedures for the County's roadway system.
The Commission is required to adopta budget priortothe beginning of each fiscal year.The annual budget,
which includes all funds, serves as the foundation for the Commission's financial planning and control
regarding staffing, operations, and capital plans. The budget is prepared by fund (financial responsibility
unit), department, and function. Management has the discretion to transfer budgeted amounts within the
financial responsibility unit according to function. During the fiscal year, all budget amendments requiring
Board approval are presented to the Board for consideration and adoption.
Local Economy
Riverside county has demonstrated resiliency with unemployment nearing pre -pandemic levels of 5%
and revenues continuing its upward trajectory. County local revenues including sales taxes and mitigation
fees such as Transportation Uniform Mitigation Fees (TUMF) have outperformed budgetary expectations.
Specifically, sales taxes have reached a new high due largely to increased e -commerce sales, higher than
anticipated fuel prices, and a lower unemployment rate due to job increases in the logistics sector. As
consumer behavior shifted from purchasing at brick -mortar locations to online, the County has experienced
both more demand for its workforce within the logistics sector increasing the purchasing power of residents
and in turn robust sales tax performance.
Riverside County has specific competitive advantages over nearby coastal counties (Los Angeles, Orange,
and San Diego) including housing that was (and remains) more available and affordable, lower commercial
real estate lease and purchase costs, and land available for development at lesser costs. Riverside County's
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33
economy has thrived, reflecting those specific competitive advantages over its neighboring counties,
largely as a result of the County's continuing ability to draw jobs, residents, and affordable housing away
from the Los Angeles, Orange, and San Diego county areas. As a result, the County's employment and
commercial base has become more diversified, and the County's share of the regional economy has
increased. It is anticipated housing prices within the County will remain strong, however property values
may not experience robust increases on a year over year basis due to current market conditions such as
higher interest rates.
For the Commission, formidable ongoing challenges remain in terms of providing needed infrastructure
enhancements to support a population that has increased annually approximately one percent (1%) in
the last ten (10) years and an economy that continues to outgrow the capacity of its existing infrastructure
specifically within the logistics sector.
Long-term Financial Planning
Proactive financial planning is a critical element for the success of the Commission as it builds for the
future. Continually reviewing projected revenues, and expenditures, to actual amounts ensures that the
Commission's expectations are realistic, and goals are achievable. Limited resources, especially at the state
and federal level, can be directed to projects of regional significance or with additional funding project
priorities can be expanded to address unfunded project requirements or developing needs.
Local funding, and specifically the Commission's voter -approved sales tax program (Measure A), will
continue to serve as RCTC's most significant source of funding. The program funds highway, street and
road, public transit, and rail projects and new transportation corridors throughout the County. The program
is established in a way to ensure funding for every geographic region within the County including the Palo
Verde Valley, Coachella Valley, and more heavily populated area of Western Riverside County. Measure
A revenues of approximately $287 million exceeded the Commission's approved revised projection for
FY 2022/23. For FY 2023/24, the Commission is cautiously optimistic for the future and thus continues
projecting conservative assumptions in the upcoming fiscal year.
At the state level, transportation funding is a source of continuing debate regarding future priorities.
Sustainability and vehicle mitigation has become a statewide priority and will likely impact the direction of
funding for many years. The State of California has established predictable funding streams such as gas tax,
a cap -and -trade program from emissions trading, and encouragement of market -based approaches such
as implementation of express lanes and toll facilities.
Along with more predictable state funding, State of California has also approved transportation policy
measures discouraging the expansion of highway capacity in favor of an added focus on public transit and
active transportation. This policy direction will likely impact the Commission's ability in delivering highway
projects due to added costs from new mitigation requirements.
Federal funding remains an important revenue source for various initiatives led by the Commission.
Specifically, the Commission remains active in monitoring funding opportunities provided by the federal
government including the Infrastructure Investment and Jobs Act or (IIJA).
Tolling is another important local funding source for the Commission, and it has largely recovered from
the impacts resulting from the pandemic. Tolling on both 15 and 91 Express lanes surpassed forecasted
expectations related to revenue while operating expenditures continue to be under -budget. During the
upcoming fiscal year, RCTC will continue to monitor traffic patterns to ensure both facilities maintain
consistent revenue patterns.
In looking to future funding decisions, providing, and ensuring equity to all will be an increasingly important
priority and responsibility. Riverside County is home to a wide array of communities with differing needs.
RCTC will place a special emphasis on education, public outreach, and policy direction with equity in
mind to serve the entire county, including disadvantaged communities that need targeted transportation
investments to serve the public and to grow and thrive.
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Capital Project Delivery and Implementation —Critical Workers Delivering Needed Infrastructure
The Capital Project Development and Delivery Department is responsible for major highway and rail
capital projects from initial environmental study through preliminary engineering, final design, right of way
acquisition, and construction.
The Commission is operating during an unprecedented era of transportation investment in Riverside
County. The results can be seen with numerous projects under construction, increasingly popular and
successful transit service, and promises of more on the way soon. There are also several notable completed
projects - providing tangible examples of the Commission completing promises that were made to voters
who approved Measure A such as the recent completion of the SR -60 truck lanes, continued improvements
within the SR -91 Corridor and investments to the County's rail network and facilities. The Commission has
developed a track record of success, which is taking shape throughout the County as evidenced in the
following project types.
Progress Continues
The Commission continues to advance projects to meet both the short-term and long-term needs of
County residents. Similar investments and resulting job creation can be seen throughout the County as
seen in the recently completed highway and rail projects:
Regional Arterial Projects: The Commission recently awarded approximately $130 million in regional
arterial projects funded by both TUMF and Measure A. The award was distributed to areas within
Western Riverside County for various street widening projects and local arterial extensions.
Placentia Interchange to link) -215 and future Mid County Parkway: Construction work began in mid -
2020 on the very first component of the Mid County Parkway (MCP), a new 16 mile east -west corridor
between the cities of San Jacinto and Perris. This $42 million project adds a new freeway interchange
at Placentia Avenue that will link to the MCP and improve a segment of Placentia Avenue in the city
of Perris. MCP project has expanded to include continued Right -of -Way purchases and begin design
work for the 3rd phase of the project.
Smart Freeways: Another project on 1-15 is the Smart Freeways project within the City of Temecula.
The project includes ramp metering to ensure a consistent flow of vehicular traffic enters the freeway.
The pilot project is in its preliminary phase during the upcoming budget year.
15/91 Express Lanes Connector: Construction began in early 2021 to build a new direct connection
between the RCTC 91 Express Lanes and the 15 Express Lanes. With the design -build contract awarded
in March 2020, the design -builder has advanced to construction activities. The new connection will
be provided from the eastbound 91 Express Lanes to the northbound 15 Express Lanes and from
the southbound 15 Express Lanes to the westbound 91 Express Lanes. Estimated completion for this
project late calendar year 2023.
71/91 Interchange: The Commission began work in early 2023 for a new connector between the
eastbound SR -91 and northbound SR -71 in the city of Corona. This approximate $134 million project
has environmental clearance and is anticipated to be completed in 2025.
Commuter Rail Improvements: The Commission continues to invest in rail infrastructure within the
County, exemplified by the Moreno Valley/March Field (MV/MF) Station upgrade. The MV/MF project
is slated to add an additional platform, rehabilitate, and replace an existing second track along with
adding a new signal system. The project is expected to be completed in 2024 with an estimated total
project cost of $40 million.
Another exciting rail improvement is the Perris Valley Line project which will replace the second track
and add a new traffic signal system. Project cost is estimated to be $30 million with a completion date
of 2025.
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Projects for Future Construction
1-15 Express Lanes Southern Extension: Environmental work is already
under way to extend the 15 Express Lanes an additional 14.5 miles to
the city of Lake Elsinore. A series of public scoping meetings were held
in 2020 as part of the comprehensive environmental review process.
79 Realignment: Another large effort affecting the Hemet and San
Jacinto communities is the realignment of SR -79. This 2009 Measure
A project is undergoing early project development partially funded
through the TUMF program and federal earmarks. An environmental
document was approved in January 2017 to allow the realignment of SR -79 between Domenigoni
Parkway, south of SR -74, and Gilman Springs Road, north of San Jacinto. The project will realign the
highway to provide a more direct route within the San Jacinto Valley. Current work on this project
includes acquisition of right of way needed for mitigation and to protect cultural sites.
15/91 Express
Lanes Connector
Active Transportation: Non -motorized transportation options are becoming an increasingly important
part of California's transportation infrastructure, and the Commission has taken a leadership role in
assisting local areas by funding and advocating for projects vying for state funding. The Commission is
also heading up project development for the Santa Ana River Trail - a multiuse facility that will provide
a bike, pedestrian, and equestrian trail to link San Bernardino, Riverside and Orange Counties for
cyclists, pedestrians and equestrians.
Toll Connections with Neighboring Counties: RCTC has been successful in establishing a productive
relationship with the Orange County Transportation Authority (OCTA) regarding the operation of the
91 Express Lanes. During the recently completed fiscal year, RCTC also entered into an agreement
with San Bernardino County Transportation Authority (SBCTA) in assigning 2.2 lanes miles of the
existing 1-15 Toll Facility. The assignment to SBCTA will not occur until the project nears completion
during calendar year 2026.
Furthermore, the Commission is currently working on another direct connection project between the
241 Toll Road operated by the Transportation Corridor Agencies (TCA) and the 91 Express Lanes.
Operational issues for this future facility are currently being addressed among the following agencies:
TCA, OCTA, Caltrans, and RCTC.
TUMF Links Growth with Infrastructure
In the Coachella Valley, a TUMF program was established shortly after the passage of the 1989 Measure A.
The program requires developers to pay a fee on new development to fund arterial improvements. Cities
are required to participate in the program or forfeit Measure A local dollars to Coachella Valley Association
of Governments, which oversees the arterial program and has been successful in funding a number of
important arterial and freeway interchange projects.
With the passage of the 2009 Measure A, a TUMF program with participation requirements similar to that
in the Coachella Valley is also in place in Western County and administered by the Western Riverside
Council of Governments. TUMF funds received by the Commission are split evenly between new corridors,
including the MCP, and regional arterials, including local projects and the SR -79 realignment project. As
noted above, the Commission recently awarded approximately $50.0 million to local areas with funding
for their regional arterial programs. The funding reflects the partnership and investment within the County.
Rail Development, Operations and Support
As one of five funding partners in the Southern California Regional Rail Authority, which operates the
Metrolink commuter rail service, the Commission is engaged in a continual exercise of consensus building
with its partners to provide effective regional service. The network consists of eight lines serving six
counties, including the new ARROW service. The system typically carried an average of slightly more than
40,000 passengers each weekday prior to COVID-19, however ridership dropped and is slowly recovering.
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The Commission owns and operates nine stations served by the three Metrolink lines operating through
the County, including four stations along the Perris Valley Line that commenced carrying passengers in
June 2016. The Riverside Downtown Operations Control Center provides monitoring of closed-circuit
televisions at the stations as well as facilities for train crews. Below is a summary of the commuter rail
services provided in Riverside County:
• Riverside Line: Originates in the Riverside -Downtown station and stops at the Jurupa Valley-Pedley
station before proceeding through Ontario, Pomona, Industry, and Montebello to Los Angeles
Union Station. Average daily ridership on the Riverside Line during fiscal year 2022-23 was 1,001.
• Inland Empire Orange County (IEOC) Line: Begins in nearby San Bernardino with stops at the
Riverside -Downtown, Riverside -La Sierra, Corona -North Main, and Corona -West stations before
entering Orange County with stops in Anaheim Canyon, Orange, Santa Ana, Tustin, Irvine, Laguna
Niguel/Mission Viejo, San Juan Capistrano, San Clemente, and Oceanside. When initiated in 1995,
this service was described as the first suburb -to -suburb commuter rail service in the nation. Average
daily ridership on the IEOC Line during fiscal year 2022-23 was 1,824. This line also provides
weekend service.
• 91/Perris Valley Line: Provides service from Perris to Los Angeles with stops in Perris -South, Perris -
Downtown, Moreno Valley/March Field, Riverside -Hunter Park/UCR, Riverside -La Sierra, Corona -
North Main, Corona -West, Fullerton, Buena Park, Norwalk, and Commerce before terminating at
Union Station. Average daily ridership on the 91/Perris Valley Line during fiscal year 2022-23 was
1,585. This line also provides weekend service.
Coachella Valley -San Gorgonio Pass Rail Service
The Commission, in coordination with Caltrans and the Federal Railroad Administration, is working to
bring passenger rail service as an alternate mode of travel across Southern California, connecting desert
communities and attractions with Los Angeles County, Orange County, and the Inland Empire.The program
proposes operating two to five daily roundtrips between Los Angeles Union Station and Indio or Coachella,
with morning and evening departures from each end. Passenger service is expected to take about 3 hours
and 15 minutes, which is comparable to trips made by cars on congested highways connecting these
communities, such as 1-5, SR -91, and 1-10.
In July 2022 the Commission certified the Final Tier 1/Program Level Environmental Impact Report.
Certification of the environmental report was a significant milestone for this project. The Commission has
now focused its efforts in engaging local and federal rail officials to determine funding for the construction
phase for this rail project. The eventual implementation of this service will provide another important link
between the Coachella Valley and Western Riverside County along with the rest of Southern California.
Commuter/ Motorist Services
Acting in its capacity as the regional transportation planning agency (RTPA) for Riverside County, the
Commission provides a variety of commuter services to increase mobility, safety, and air quality throughout
the region.
CommuterAssistance: As the RTPA, the Commission applies Measure A funds to administer the Commuter
Assistance Program to ease congestion, maximize the efficiency of its transportation investments, and
reduce vehicle miles traveled and emissions from single occupant vehicle trips with the following programs
and services:
Ride matching and Information Services: The Commission, in partnership with the SBCTA provides
commuters and employer partners in the region with access to rideshare resources (IECommuter.org)
and information to assist with finding ride matches for car/vanpool arrangements or transit options
and to participate in incentives. A call center (866-RIDESHARE) is also available during business hours
for commuters or employers who need more personal support.
Rideshare Incentives: The most popular commuter incentive continues to be the $5 per day Rideshare
Incentives, a short-term incentive that offers $5 per day for each day commuters use an alternate
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mode of transportation in a three-month period (up to a max of $125). Long-term commuter ride
sharers and teleworking employees are recognized and rewarded for their continuing commitment
to use alternate modes of transportation to and from work with access opportunities to win monthly
prizes for reported rideshare and telework activity through monthly Rideshare Spotlight and Telework
Spotlight programs.
Vanpool Subsidies: The Commission provides ongoing subsidies to eligible vanpools commuting
to employer worksites in Western County through its VanClub program. In FY 2022-23, VanClub
supported an average of 37 vans per month resulting in the reduction of more than an estimated
58,000 trips, 2.3 million miles, and 855 tons of emissions throughout the region. A recovery toward
pre -pandemic vanpools levels (80 vanpools) continued to be a challenge throughout the fiscal year;
however, the program will be ready to continue as more workers return to various work sites.
Guaranteed Ride Home: Through the Commission's rideshare program, IE Commuter, a Guaranteed
Ride Home (GRH) service is available to ridesharing commuters of employer partners. Should they
experience an emergency and need to get home, they are reimbursed the cost of a Lyft/Uber or other
transportation network company ride, rental car, taxi, or transit option used to get home. GRH also
covers when an employee may miss his/her ride due to unexpected overtime. Eligible participants
may claim up to two emergency rides home per year.
Park & Rides: Working in partnership with Caltrans, the Commission leases excess parking from
business and civic institutional partners to facilitate ridesharing and to expand the system's park and
ride capacity. There are more than 3,000 park and ride spaces available in Riverside County.
Motorist Assistance: As the SAFE, the Commission also administers the Motorist Assistance Program to
provide the following services designed to promote mobility and safety for motorists traveling through
Riverside County:
Freeway Service Patrol: The FSP program is a special team of 22 tow trucks roving along 11 beats on
portions of SR -60, SR -91,I-15, and 1-215 within the County during peak, weekday commuter hours to
assist drivers when their vehicles break down or experience other mechanical problems. The purpose
of the FSP is to clear debris and remove disabled vehicles from the freeway as quickly as possible
to help keep freeway traffic moving during rush hour periods. Another effort augments existing FSP
service with additional tow trucks in construction areas as another means of construction -related
congestion mitigation. The Riverside County SAFE and the State fund the FSP. During FY 2022-23, the
FSP provided approximately 51,600 assists. This includes incremental FSP weekend service, funded by
the South Coast Air Quality Management District's Mobile Source Air Pollution Reduction and Review
Committee, on segments of SR -91 and SR -60.
Call Boxes: In cooperation with the California Highway Patrol and Caltrans, the Commission assists
motorists who experience accidents, mechanical breakdowns, or other unforeseen problems by
providing access to cellular call boxes with enhanced reception along the County's major highways. In
response to the proliferation and continued growth of cell phone usage and declining demand and
use of call boxes, the Commission approved a substantial reduction to the call box system in 2017
and 2019. A cost-effective backbone of 136 call box units will remain in place and serve more than
346 centerline miles of highways. The call box program is funded by Riverside County SAFE revenue,
an annual $1 surcharge added to vehicle registrations. In FY 2022-23, call box operators answered
approximately 782 calls from motorists.
Traveler Information: To further promote mobility, the Commission in collaboration with Southern
California partners (LA Metro, OCTA, SBCTA, and VCTC), provides motorists with access to real-
time freeway travel information and incident information on Southern California highways through
its SoCal 511 Traveler Information system. SoCal 511 is designed to promote mobility by fostering
more informed travel decisions to avoid congestion and is available via the telephone by dialing 511
from any landline or cell phone within Riverside County, online at www.Go511.com, or the Go511
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mobile app. SoCal 511 is funded with Riverside County SAFE funds. In FY 2022-23, SoCal 511 serviced
901,233 web visits across SoCal 511 partner regions and 72,689 phone calls within the Inland Empire.
Specialized Transit
The Commission has maintained a long-term commitment to assist residents with specialized transit needs.
Through its Specialized Transit Program, the Commission has provided millions of dollars to public and
nonprofit transit operators that provide special transit services
to improve the mobility of seniors, persons with disabilities
and persons with low incomes. Along with traditional dial -a -
ride services, the Commission supports innovative programs
providing transit assistance in hard -to -serve rural areas or for
riders having very special transit needs. With funding from this
program, individuals can travel to work independently, shop
at the neighborhood grocery stores, visit a doctor, and much
more.
The Commission develops a Public Transit -Human Services Coordinated Plan every four years. This plan
assists the Commission in identifying service gaps, additional qualifying populations, and underserved
areas of Riverside County in need of transit services. The Commission updated this plan in January 2021.
To address some of these transit service needs identified in the Public Transit -Human Services Coordinated
Plan, a portion of the Measure A sales tax in Western Riverside County is set aside for a Specialized Transit
Call for Projects. This Specialized Transit Call for Projects is held every three years and provides funding
awards for public and nonprofit transit operators. During fiscal year 2022/23, public and nonprofit transit
operators provided over 170,000 one-way trips.
In addition to funding and planning, the Commission updated its bylaws and membership requirements
for its TDA-required Social Services Transportation Advisory Council during fiscal year 2022/23. The
Citizens and Specialized Transit Advisory Committee (CSTAC) consists of 13 members of the public and
two Consolidated Transportation Service Agency members, which were appointed by the Commission
in March 2020 with terms and bylaws updated in April 2021. The CSTAC meets bimonthly and provides
Commission staff additional insight into specialized transit needs throughout the County.
Awards and Acknowledgements
The Government Finance Officers Association of the United States and Canada (GFOA) awarded a
Certificate of Achievement for Excellence in Financial Reporting to the Commission for its Annual Report
for the fiscal year ended June 30, 2023. This was the 30th consecutive year the Commission has achieved
this prestigious award. In order to be awarded a Certificate of Achievement, a government must publish an
easily readable and efficiently organized Annual Report.This report must satisfy both GAAP and applicable
legal requirements.
A Certificate of Achievement is valid for a period of one year only. We believe our current Annual Report
continues to meet the Certificate of Achievement Program's requirements, and we are submitting it to the
GFOA to determine its eligibility for another certificate.
The Annual Report each year is a collaborative effort by Commission staff and its independent auditors.
The undersigned are grateful to all staff for their willingness to expend the effort necessary to ensure the
financial information contained herein is informative and completed within established deadlines. Special
thanks must be extended to the Finance staff, program management and staff, and Commission's auditors
for the time, effort, and commitment so vital for the final completion of the Annual Report.
viii
39
In closing, without the leadership and the support of the Board, preparation of this report would not
have been possible, particularly the dedication, professional judgement, and prudence by the Finance
department, led by the Deputy Director of Finance. Its prudent management must be credited for the
strength of the Commission's fiscal condition, and its vision ensuresthatthe Riverside County Transportation
Commission will be on the move planning for and building a better future for Riverside County residents
and commuters.
Very truly yours,
ANNE MAYER
Executive Director
SERGIO VIDAL
Chief Financial Officer
6�9
Government Finance Officers Association
Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
Riverside County Transportation Commission
California
For its Annual Comprehensive
Financial Report
For the Fiscal Year Ended
June 30, 2022
CA -4a4.... P 7 u -=u
Executive Director/CEO
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40
Riverside County Transportation Commission Organization Chart
Human Resources
Manager
Human Resources
Assistant
Board of Commissioners
Executive Director
Deputy Executive Director
Administrative Services Director
/ Clerk of the Board
Deputy Clerk of the Board
(2)
Senior Administrative
Assistant (2)
Records Technician
Administrative Assistant (2)
Senior Office Assistant
IT Administrator
Chief Financial Officer
Deputy Director of Finance
HSenior Finandal Analyst
Financial Analyst
Accounting
Technician
Accounting Supervisor
Accountant (2)
Accounting
Technician
Accounting
Assistant (2)
Deputy Director of Financial
Administration
Financial Administration
Manager
Accounting
Supervisor
Accountant
Accounting
Technician
Procurement Manager
—I
Senior
( Procurement
Analyst
J Procurement
Analyst
Planning and Programming
Director
Planning and
Programming Manager
Senior Management
Analyst (2)
Multimodal Services
Director
Rail Manager
1 Transit Manager
I Senior Management
Analyst
Management Analyst
Extemal Affairs Director
HPublic Affairs Manager
Senior Management
Analyst (2)
d Legislative Affairs
Manager
L
Senior Management
Analyst
— Commuter / Motorist
Assistance Manager
Senior Management
Analyst
Community Engagement
Manager
41
X
Riverside County Transportation Commission Organization Chart
Legal Counsel
Toll Operations Director
Toll Customer Service
Manager
Senior Management
Analyst
Toll Technology Manager
Toll Systems
Engineer
Senior Management
Analyst
Project Delivery Director
Senior Capital Projects
Manager (2)
Capital Projects Manager
(2)
Right of Way Manager
Senior Management
Analyst (6)
Facilities Administrator
Toll Project Delivery Director
d Senior Capital Projects Manager
(2)
Capital Projects Manager
Regional Conservation Director
Regional Conservation Deputy
Director
Reserve Management /
Monitoring Manager
Senior Management
Analyst (2)
Senior Management
Analyst (2)
Riverside County Transportation Commission
List of Principal Officials
BOARD OF COMMISSIONERS
Name
Title
Agency
Kevin Jeffries
Karen Spiegel
Chuck Washington
V. Manuel Perez
Yxstian Gutierrez
Sheri Flyn
Lloyd White
Joseph DeConinck Member
Linda Molina
Member
2nd Vice Chair (Commission)
Member
Member
Member
Member
Vice Chair (Commission)
County of Riverside, District 1
County of Riverside, District 2
County of Riverside, District 3
County of Riverside, District 4
County of Riverside, District 5
City of Banning
City of Beaumont
City of Blythe
City of Calimesa
City of Canyon Lake
City of Cathedral City
City of Coachella
City of Corona
Jeremy Smith
Raymond Gregory Member
Steven Hernandez Member
Vice Chair (Budget and Implementation)
Chair (Budget and Implementation Committee)
Wes Speake
Scott Matas
Clint Lorimore
Vice Chair (Western Riverside County Programs and
Projects Committee)
Member
Member
Linda Krupa
Dana Reed
Member
Member
Waymond Fermon Member
Brian Berkson
Kathleen Fitzpatrick
Bob Magee
Bill Zimmerman
Ulises Cabrera
Cindy Warren
Katherine Aleman Member
City of Desert Hot Springs
City of Eastvale
City of Hemet
City of Indian Wells
City of Indio
Chair (Western Riverside County Programs and Projects City of Jurupa Valley
Committee)
Member City of La Quinta
Chair (Commission) City of Lake Elsinore
Member City of Menifee
Member
Member
Jan Harnik
Lisa Middleton
Member
Member
City of Moreno Valley
City of Murrieta
City of Norco
City of Palm Desert
City of Palm Springs
Michael M. Vargas Vice Chair (Toll Policy and Operations Committee) City of Perris
Meg Marker
Chuck Conder
Member
Member
Alonso Ledezma Member
James Stewart
Member
Joseph Morabito Chair (Toll Policy and Operations Committee)
City of Rancho Mirage
City of Riverside
City of San Jacinto
City of Temecula
City of Wildomar
Catalino Pining
Governor's Appointee
Caltrans, District 8
MANAGEMENT STAFF
Anne Mayer, Executive Director
Aaron Hake, Deputy Executive Director
Jennifer Crosson, Toll Operations Director
Erik Galloway, Project Delivery Director
Jillian Guizado, Planning and Programming Director
Aaron Gabbe, Regional Conservation Deputy Executive Director
David Knudsen, External Affairs Director
Lorelle Moe -Luna, Multimodal Services Director
David Thomas, Toll Project Delivery Director
Lisa Mobley, Administrative Services Director/Clerk of the Board
Sergio Vidal, Chief Financial Officer
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43
EideBailly
CPAs & BUSINESS ADVISORS
Independent Auditor's Report
Board of Commissioners
Riverside County Transportation Commission
Riverside, California
Report on the Audit of the Financial Statements
Opinions
We have audited the financial statements of the governmental activities, the business -type activities,
each major fund, and the aggregate remaining fund information of the Riverside County Transportation
Commission (Commission) as of and for the year ended June 30, 2023, and the related notes to the
financial statements, which collectively comprise the Commission's basic financial statements as listed in
the table of contents.
In our opinion, the accompanying financial statements referred to above present fairly, in all material
respects, the respective financial position of the governmental activities, the business -type activities,
each major fund, and the aggregate remaining fund information of the Commission, as of June 30, 2023,
and the respective changes in financial position, and, where applicable, cash flows thereof for the year
then ended in accordance with accounting principles generally accepted in the United States of America.
Basis for Opinions
We conducted our audit in accordance with auditing standards generally accepted in the United States
of America (GAAS). Our responsibilities under those standards are further described in the Auditor's
Responsibilities for the Audit of the Financial Statements section of our report. We are required to be
independent of the Commission and to meet our other ethical responsibilities, in accordance with the
relevant ethical requirements relating to our audit. We believe that the audit evidence we have
obtained is sufficient and appropriate to provide a basis for our audit opinions.
Adoption of New Accounting Standard
As discussed in Note 14 to the financial statements, the Commission has adopted the provisions of
Governmental Accounting Standards Board (GASB) Statement No. 96, Subscription -Based Information
Technology Arrangements (SBITAs), for the year ended June 30, 2023. Accordingly, a restatement has
been made to the governmental activities as of July 1, 2022, to restate beginning net position. Our
opinions are not modified with respect to this matter.
Responsibilities of Management for the Financial Statements
Management is responsible for the preparation and fair presentation of the financial statements in
accordance with accounting principles generally accepted in the United States of America; and for the
design, implementation, and maintenance of internal control relevant to the preparation and fair
presentation of financial statements that are free from material misstatement, whether due to fraud or
error.
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45
In preparing the financial statements, management is required to evaluate whether there are conditions
or events, considered in the aggregate, that raise substantial doubt about the Commission's ability to
continue as a going concern for twelve months beyond the financial statement date, including any
currently known information that may raise substantial doubt shortly thereafter.
Auditor's Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole
are free from material misstatement, whether due to fraud or error, and to issue an auditor's report
that includes our opinions. Reasonable assurance is a high level of assurance but is not absolute
assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS will always
detect a material misstatement when it exists. The risk of not detecting a material misstatement
resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery,
intentional omissions, misrepresentations, or the override of internal control. Misstatements are
considered material if there is a substantial likelihood that, individually or in the aggregate, they would
influence the judgment made by a reasonable user based on the financial statements.
In performing an audit in accordance with GAAS, we:
• Exercise professional judgment and maintain professional skepticism throughout the audit.
• Identify and assess the risks of material misstatement of the financial statements, whether due
to fraud or error, and design and perform audit procedures responsive to those risks. Such
procedures include examining, on a test basis, evidence regarding the amounts and disclosures
in the financial statements.
• Obtain an understanding of internal control relevant to the audit in order to design audit
procedures that are appropriate in the circumstances, but not for the purpose of expressing an
opinion on the effectiveness of the Commission's internal control. Accordingly, no such opinion
is expressed.
• Evaluate the appropriateness of accounting policies used and the reasonableness of significant
accounting estimates made by management, as well as evaluate the overall presentation of the
financial statements.
• Conclude whether, in our judgment, there are conditions or events, considered in the aggregate,
that raise substantial doubt about the Commission's ability to continue as a going concern for a
reasonable period of time.
We are required to communicate with those charged with governance regarding, among other matters,
the planned scope and timing of the audit, significant audit findings, and certain internal control —related
matters that we identified during the audit.
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the management's
discussion and analysis, budgetary comparison schedules, schedule of proportionate share of net
pension liability/(asset), schedule of pension contributions, schedule of changes in the net OPEB
liability/(asset) and related ratios, and the schedule of OPEB contributions, as listed in the table of
contents be presented to supplement the basic financial statements. Such information is the
responsibility of management and, although not a part of the basic financial statements, is required by
the Governmental Accounting Standards Board who considers it to be an essential part of financial
2
46
reporting for placing the basic financial statements in an appropriate operational, economic, or
historical context. We have applied certain limited procedures to the required supplementary
information in accordance with GAAS, which consisted of inquiries of management about the methods
of preparing the information and comparing the information for consistency with management's
responses to our inquiries, the basic financial statements, and other knowledge we obtained during our
audit of the basic financial statements. We do not express an opinion or provide any assurance on the
information because the limited procedures do not provide us with sufficient evidence to express an
opinion or provide any assurance.
Supplementary Information
Our audit was conducted for the purpose of forming opinions on the financial statements that
collectively comprise the Commission's basic financial statements. The combining and individual
nonmajor fund financial statements, budgetary comparison schedules, schedules of expenditures, and
schedule of uses of debt proceeds and fund balances are presented for purposes of additional analysis
and are not a required part of the basic financial statements. Such information is the responsibility of
management and was derived from and relates directly to the underlying accounting and other records
used to prepare the basic financial statements. The information has been subjected to the auditing
procedures applied in the audit of the basic financial statements and certain additional procedures,
including comparing and reconciling such information directly to the underlying accounting and other
records used to prepare the basic financial statements or to the basic financial statements themselves,
and other additional procedures in accordance with GAAS. In our opinion, the combining and individual
nonmajor fund financial statements, budgetary comparison schedules, schedules of expenditures, and
schedule of uses of debt proceeds and fund balances are fairly stated, in all material respects, in relation
to the basic financial statements as a whole.
Other Information
Management is responsible for the other information included in the annual report. The other
information comprises the introductory and statistical sections but does not include the basic financial
statements and our auditor's report thereon. Our opinions on the basic financial statements do not
cover the other information, and we do not express an opinion or any form of assurance thereon.
In connection with our audit of the financial statements, our responsibility is to read the other
information and consider whether a material inconsistency exists between the other information and
the basic financial statements, or the other information otherwise appears to be materially misstated. If,
based on the work performed, we conclude that an uncorrected material misstatement of the other
information exists, we are required to describe it in our report.
Rancho Cucamonga, California
October 31, 2023
3
47
48
Riverside County Transportation Commission
Management's Discussion and Analysis
Year Ended June 30, 2023
As management of the Riverside County Transportation Commission (Commission), we offer readers of the
Commission's financial statements this narrative overview and analysis of the Commission's financial activities
for the fiscal year ended June 30, 2023. We encourage readers to consider the information on financial
performance presented here in conjunction with the transmittal letter on pages i-ix and the Commission's
financial statements which begin on page 23.
Financial Highlights
• Total net position of the Commission was $1,188,488,943 and consisted of net investment in capital
assets of $306,568,725; restricted other post -employment benefits net position of $2,227,000, and
restricted net position of $1,392,072,851; and unrestricted net position (deficit) of ($510,152,633).
• The governmental activities unrestricted netdeficitresultsprimarilyfromtherecordingofthedebtissued
for Measure A highway, local streets and roads, and regional arterial projects. As title to substantially
most of those assets vests with the State of California (State) Department of Transportation (Caltrans)
or local jurisdictions, there is no asset corresponding to the liability. Accordingly, the Commission
does not have sufficient current resources on hand to cover current and long-term liabilities; however,
future Measure A sales taxes are pledged to cover Measure A debt service payments when made.
• Total net position increased by $239,673,908 during fiscal year(FY)2022/23.An increase in net position
from governmental activities of $269,238,074 was primarily due to increases in capital grants and
contributions due to funding received for a connector project in the City of Corona, continued strong
economic activity within the County resulting in higher Measure A and TDA sales taxes. The increase
is offset by higher expenditures and lower operating grants and contributions due to exhausting of
pandemic relief funds. An increase in net position deficit from business -type activities of $29,564,166
resulted from toll revenue increases, offset by increases in required repair and rehabilitation expenses
for the 91 Express Lanes and transfers of 91 Express Lanes surplus funding for the 15/91 Express
Lanes Connector project from the 91 Express Lanes.
• Total capital assets, net of accumulated depreciation and amortization, were $1,351,213,184 at June
30, 2023, representing an increase of $59,359,792 or 5%, from June 30, 2022. The increase in capital
assets was primarily related to an increase in land for the SR -91 project, construction in progress on
the 15/91 Express Lanes Connector and 1-15 Express Lanes Southern Extension projects, including rail
station improvements.
• The long-term obligations decreased of $33,017,312, or 2% and is related to principal payments
on the sales tax revenue bonds and amortization of sales tax revenue bonds premium; offset by the
compounded and accreted interest on the TIFIA loans. Additionally, deferred inflows of resources
show a decrease of $3,517,944, or 37% and is related to lower leases, pension and other post -
employment benefits (OPEB).
• The Commission's governmental funds reported combined ending fund balances of $1,271,162,231,
an increase of $166,516,025 compared to FY 2021/22 primarily due to increases in sales taxes,
intergovernmental revenues for reimbursement of projects costs, investment income, and transfers
in, offset by a net increase in program expenditures. Approximately 57% of the governmental fund
balances represent amounts available for the MeasureA program, including debt service and funding
from the issuance of debt, and the TUMF program.
Overview of the Financial Statements
This discussion and analysis are intended to serve as an introduction to the Commission's basic financial
statements, which are comprised of three components consisting of government -wide financial statements,
fund financial statements, and notes to the financial statements. This report also contains required
supplementary information and other supplementary information in addition to the basicfinancial statements.
Government -wide Financial Statements
The government -wide financial statements are designed to provide readers with a broad overview of the
Commission's finances, in a manner similar to a private -sector business.
The statement of net position presents information on all of the Commission's assets, liabilities, and deferred
outflows/inflows of resources with the difference reported as net position. Over time, increases or decreases
in net position may serve as a useful indicator of whetherthe financial position of the Commission is improving
or deteriorating.
The statement of activities presents information showing how the Commission's net position changed during
the fiscal year. All changes in net position are reported as soon as the underlying event giving rise to the
change occurs, regardless of the timing of related cash flows. Thus, revenues and expenses are reported for
some items that will only result in cash flows in future fiscal periods.
The government -wide financial statements report the functions of the Commission that are principally
supported by sales taxes and intergovernmental revenues, or governmental activities, from other functions
that are intended to recover all or a significant portion of its costs through user fees and charges, or
business -type activities. The governmental activities of the Commission include general government, the
Measure A program, CETAP, commuter assistance, regional arterials, commuter rail, transit and specialized
transportation services, planning and programming, regional conservation, bicycle and pedestrian facilities
projects, and motorist assistance services. Measure A program services are divided within the three regions
of Riverside County (County), namely Western County, Coachella Valley, and Palo Verde Valley. The business -
type activities of the Commission include toll road operations.
The government -wide financial statements include only the Commission and its blended component unit.
The government -wide financial statements can be found on pages 24-25 of this report.
Fund Financial Statements
A fund is a grouping of related accounts that is used to maintain control over resources that have been
segregated for specific activities or objectives. Fund accounting is used to ensure and demonstrate
compliance with finance -related legal requirements.
Governmental funds are used to account for essentially the same functions reported as governmental
Governmental funds are used to account for essentially the same functions reported as governmental
activities in the government -wide financial statements; however, governmental fund financial statements
focus on near -term inflows and outflows of spendable resources and on balances of spendable resources
available at the end of the fiscal year. Such information may be useful in evaluating a government's near -term
financing requirements.
Since the focus of governmental funds is narrower than that of the government -wide financial statements, it
is useful to compare the information presented for governmental funds with similar information presented
for governmental activities in the government -wide financial statements. As a result, readers may better
understand the long-term impact of the government's near -term financing decisions. Both the governmental
fund balance sheet and related statement of revenues, expenditures and changes in fund balances provide
a reconciliation to facilitate this comparison between governmental funds and governmental activities.
The Commission maintains 17 individual governmental funds. Information is presented separately in the
governmental fund balance sheet and in the related statement of revenues, expenditures and changes in
fund balances for the Commission's major governmental funds comprised of the General fund, Measure A
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Western County, Measure A Coachella Valley, TUMF, Local Transportation Fund (LTF), State Transit Assistance,
and SB 132 Special Revenue funds, Commercial Paper and Bonds Capital Projects funds, and Debt Service
fund. Data from the other seven governmental funds are combined into a single, aggregated presentation.
Individual fund data for each of these nonmajor governmental funds is provided in the form of combining
statements in the other supplementary information section.
The Commission adopts an annual appropriated budget for the General fund, Special Revenue funds, Capital
Projects funds, and the Debt Service fund. Budgetary comparison schedules have been provided for the
General fund and major Special Revenue funds as required supplementary information and forthe nonmajor
Special Revenue funds and the Capital Projects and Debt Service funds as other supplementary information
to demonstrate compliance with these budgets.
The governmental fund financial statements, including the reconciliation between the fund financial
statements and the government -wide financial statements, can be found on pages 22-33 of this report.
The proprietary fund consists of two enterprise funds, which are used to report the same functions presented
as business -type activities in the government -wide financial statements. The Commission uses enterprise
funds to account for its toll road operations.
Proprietary fund financial statements provide the same type of information as the government -wide
financial statements, only in more detail. The proprietary fund financial statements provide separate financial
information of the RCTC 91 Express Lanes and 15 Express Lanes, which are major enterprise funds of the
Commission.
The proprietary fund financial statements can be found on pages 34-37 of this report.
Notes to the Financial Statements
The notes provide additional information that is essential to a full understanding of the data provided in
the government -wide and fund financial statements. The notes to the financial statements can be found on
pages 38-83 of this report.
Other Information
Other information is in addition to the basic financial statements and accompanying notes to the
financial statements. This report also presents certain required supplementary information concerning
the Commission's budgetary results for the General fund and major Special Revenue funds as well as the
schedules of proportionate share of net pension liability, pension contributions, changes in the net other
post -employment benefits (OPEB) asset and related ratios, and OPEB contributions. Required supplementary
information can be found on pages 86-95 of this report.
Other supplementary information is presented immediately following the required supplementary
information. Other supplementary information includes the combining statements referred to earlier
relating to nonmajor governmental funds; budgetary results for the nonmajor Special Revenue funds, all
Capital Projects funds, and the Debt Service fund; schedules of expenditures for local streets and roads and
expenditures for transit and specialized transportation; and schedule of uses of debt proceeds and fund
balances. This other supplementary information can be found on pages 99-112 of this report.
Government -wide Financial Analysis
As noted previously, net position may serve overtime as a useful indicator of a government's financial position.
At June 30, 2023, the Commission's assets, including deferred outflows of resources, exceeded liabilities,
and deferred outflow of inflows, by $1,188,488,943, a $239,673,908 increase from June 30, 2022. Our
analysis below focuses on the net position and changes in net position of the Commission's governmental
and business -type activities.
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Net Position
Approximately 27%, compared to 26% in FY 2021/22, of the Commission's net position reflects its net
investment in capital assets (i.e., intangibles consisting of toll facility franchise; construction in progress; land
and improvements; toll infrastructure; buildings; construction and rail operating easements; rail stations;
rail tracks; building and office improvements; development in progress; transponders; and office furniture,
equipment, and vehicles), less any related outstanding debt used to acquire those assets, primarily related
to land and tolled express lane projects. The Commission uses these capital assets to provide transportation
services to the residents and business community of the County. Although the Commission's investments
in capital assets is reported net of related debt, the resources used to repay this debt must be provided
from other sources, since the capital assets themselves cannot be used to liquidate these liabilities. For
business -type activities, the related debt for the RCTC 91 Express Lanes exceeded the capital assets, net of
accumulated depreciation and amortization, as a portion of the debt financed highway improvements on SR -
91 for which title vests with Caltrans. The increase is related to construction in progress for the 15/91 Express
Lanes Connector and 1-15 Express Lanes Southern Extension projects, including rail station improvements,
and the purchase of land, offset by the payment of debt.
The most significant portion of the Commission's net position represents resources subject to external
restrictions on how they may be used. Restricted net position from governmental activities represents
the majority of the total governmental activities net position at June 30, 2023. Restricted net position
from governmental activities increased by $155,267,179, as a result of the increased sales tax and capital
contributions, including investment income and transfers in, offset by a net increase in program expenses.
Restricted net position deficit from business -type activities decreased $23,762,657 primarily as a result of net
revenues from operations, offset by increased repair and rehabilitation project costs on the 91 Express Lanes,
higher than anticipated roll revenues, and continued transfer of surplus funding for the 15/91 Express Lanes
Connector project.
Unrestricted net position represents the portion of net position that can be used to finance day-to-day
operationswithoutconstraintsestablished bydebtcovenants, enabling legislation, orotherlegal requirements.
Unrestricted net position from governmental activities deficit was reduced from a $540,884,718 at June 30,
2022 to $510,152,633 at June 30, 2023. The governmental activities deficit results primarily from the impact
of recording of the Commission's long-term debt, consisting of bonds issued for Measure A highway, local
street and road, and regional arterial projects. While a significant portion of the debt has been incurred to
build these projects which are capital assets, upon completion most projects except for express lanes projects
are transferred to Caltrans or the local jurisdiction. Accordingly, projects other than express lanes are not
assets of the Commission that offset the long-term debt in the statement of net position. Upon completion,
express lanes projects and related debt are transferred to business -type activities.
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52
The following is condensed financial data related to net position at June 30, 2023 and June 30, 2022:
Net Position
Governmental Activities Business -Type Activities
2023 2022
2023 2022
Total
2023 2022
Current and other assets
Capital assets not being depreciated
Capital assets, net of depreciation
and amortization
Total assets
Deferred outflows of resources
Total assets and deferred outflows
of resources
Long-term obligations
Other liabilities
Total liabilities
$1,355,891,955
504,689,862
240,059,671
$1,234,626,680
425,407,610
251,238,636
$ 226,456,593
25,725,838
580,737,813
$242,917,535
16,864,711
597,217,318
$1,582,348,548
530,415,700
820,797,484
$1,477,544,215
442,272,321
848,455,954
2,100,641,488 1,911,272,926 832,920,244 856,999,564 2,933,561,732 2,768,272,490
38,837,345 42,331,367 15,546,499 16,053,065 54,383,844 58,384,432
2,139,478,833 1,953,604,293 848,466,743 873,052,629 2,987,945,576 2,826,656,922
795,541,492 835,313,388
79,610,619 119,963,133
875,152,111 955,276,521
Deferred inflows of resources 5,403,507 8,642,631
Total liabilities and deferred inflows 880,555,618 963,919,152
of resources
Net position:
Net investment in capital assets
Restricted
Unrestricted (deficit)
Net position at end of year
902,311,767
15,891,978
918,203,745
895, 5 57,183 1,697,853,259 1,730,870,571
17,389,461 95,502,597 137,352,594
912,946,644 1,793,355,856 1,868,223,165
697,270 976,090 6,100,777 9,618,721
918,901,015 913,922,734 1,799,456,633 1,877,841,886
483,304,687 415,495,777 (176,735,962) (171,314,772) 306,568,725 244,181,005
1,285, 771,161 1,115,074,082 106,301,690 130,444,666 1,392,072,851 1,245, 518,748
(510,152,633) (540,884,718) - - (510,152,633) (540,884,718)
$1,258,923,215 $ 989,685,141 $ (70,434,272) $ (40,870,106) $1,188,488,943 $ 948,815,035
Changes in Net Position
The Commission'stotal program and general revenues were $872,004,711,whilethetotal cost ofall programs
was $632,330,803. Total revenues increased by 9%, and the total cost of all programs increased by 19%.
Those who directly benefited from the programs or other governments that subsidized certain programs
with grants and contributions paid approximately 56% of the costs of the Commission's programs in FY
2022/23, compared to 66% of the costs in FY 2021/22. Sales taxes ultimately financed a significant portion
of the programs' net costs.
Governmental and business -type activities increased the Commission's net position by $239,673,908 and
condensed financial data related to the change in net position is presented in the table below. Key elements
of this increase, are as follows:
• Charges for services increased by $10,249,966, or 10%, due to slightly increased traffic volumes,
including changes in toll rates on the RCTC 91 Express Lanes and 15 Express Lanes;
• Operating grants and contributions decreased by $98,098,702, or 55%, primarily due to state
reimbursements related to commuter rail operations, planning and programming, and freeway
service patrol due to exhausting pandemic relief funds;
• Capital grants and contributions increased by $86,389,822, or 120%, primarily due to federal and
state reimbursements related to the project funding for 71/91 Connector, Mid County Parkway, and
smart freeway projects;
• Measure A sales tax revenues increased by $7,258,180, or 3%. This increase is primarily as a result of
online sales, including sales from a diversified economic base in Riverside County;
• Transportation Development Act (TDA) sales taxes increased by $17,208,847, or 10%, primarily as a
result of increased economic activity, including sales from a diversified economic base in Riverside
County;
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• Unrestricted investment earnings increased $49,135,935, or 277% due to unrealized gains in the
portfolio compared to unrealized losses in FY 2021/22;
• Other miscellaneous revenues decreased $96,774, or 4%, due primarily to the sale of rail and highway
properties in the previous fiscal year;
Changes in Net Position
Revenues
Program revenues:
Charges for services $ 314,643 $ 392,868 $ 112,707,067 $ 102,378,876 $ 113,021,710 $ 102,771,744
Operating grants and contributions 81,558,262 179,656,964 - 81,558,262 179,656,964
Capital grants and contributions 158,239,283 71,849,461 - 158,239,283 71,849,461
General revenues:
MeasureAsalestaxes 287,428,762 280,170,582 - - 287,428,762 280,170,582
TDAsalestaxes 197,891,127 180,682,280 - 197,891,127 180,682,280
Unrestricted investment earnings 25,402,156 (14,295,090) 5,985,986 (3,452,703) 31,388,142 (17,747,793)
(loss)
Other miscellaneous revenue 2,477,425 2,574,199 - 2,477,425 2,574,199
Total revenues 753,311,658 701,031,264 118,693,053 98,926,173 872,004,711 799,957,437
Expenses
General government 3,381,001 (2,868,799) - - 3,381,001 (2,868,799)
Bicycle and pedestrian facilities 2,578,177 1,587,819 - - 2,578,177 1,587,819
CETAP 1,046,199 5,181,055 1,046,199 5,181,055
Commuter assistance 4,187,763 3,229,524 - 4,187,763 3,229,524
Commuter rail 58,899,642 34,291,250 - - 58,899,642 34,291,250
Highways 177,171,636 159,525,490 177,171,636 159,525,490
Local streets and roads 87,229,315 85,183,610 - - 87,229,315 85,183,610
Motorist assistance 4,606,991 4,322,295 - - 4,606,991 4,322,295
Planning and programming 8,099,856 4,774,012 8,099,856 4,774,012
Regional arterials 8,157,544 24,258,688 - 8,157,544 24,258,688
Regional conservation 10,243,763 1,492,799 - 10,243,763 1,492,799
Toll operations 102,562,700 96,696,426 102,562,700 96,696,426
Transit and specialized transportation 134,722,572 85,415,249 134,722,572 85,415,249
Interest expense 29,443,644 30,512,904 29,443,644 30,512,904
Total expenses 529,768,103 436,905,896 102,562,700 96,696,426 632,330,803 533,602,322
Excess (deficiency) of revenues over 223,543,555 264,125,368 16,130,353 2,229,747 239,673,908 266,355,115
(under) expenses
Governmental Activities
Business -Type Activities Total
2023 2022 2023 2022 2023 2022
Transfers 45,694,519 (11,165,147) (45,694,519) 11,165,147
Increase (decrease) in net position 269,238,074 252,960,221 (29,564,166) 13,394,894 239,673,908 266,355,115
Net position at beginning of year 989,685,141 736,724,920 (40,870,106) (54,265,000) 948,815,035 682,459,920
Net position at end of year $1,258,923,215 $ 989,685,141 $ (70,434,272) $ (40,870,106) $1,188,488,943 $ 948,815,035
• General government expenses increased by $6,249,800, or 218%, primarily due to the recognition of
the pension actuarial liability compared to a pension actuarial asset in FY 2021/22 and is recognized
as a deferred outflow of pension contributions;
• Bicycle and pedestrian facilities expenses increased by $990,358, or 62%, due to an increase in claims
submitted for approved projects;
• CETAP expenses decreased $4,134,856, or 80%, due to Mid County Parkway project funding in the
previous fiscal year;
• Commuter assistance expenses increased $958,239, or 30%, primarily due to an increase in program
management services;
• Commuter rail expenses increased by $24,608,392 or 72%, as a result increased operating
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54
contributions to the Southern California Regional Rail Authority (SCRRA) due to COVID-19 impacts
and availability of federal COVID-19 relief funds to SCRRA;
• Highway expenses increased by $17,646,146, or 11%, due primarily to right of way activities on the
SR -91 project;
• Local streets and roads expenses increased by $2,045,705 or 2%, because of an increase in the overall
Measure A sales tax revenue have a corresponding allocation increase to the local jurisdictions;
• Motorist assistance expenses increased by $284,696, or 7%, due primarily to reduced freeway service
patrol activities;
• Planning and programming expenses increased by $3,325,844, or 70%, due to LTF planning
allocations and various next generation express lanes and transit -oriented communities strategic plan
development studies;
• Regional arterial expenses decreased by $16,101,144 or 66%, as a result of a net decrease in
reimbursements to local jurisdictions for approved regional arterial projects;
• Regional conservation expenses increased by $8,750,964, or 586%, primarily due to the recognition
of the pension actuarial liability that is recognized as a deferred outflow of pension and OPEB
contributions, along with professional services, right of way support costs, and reimbursement for
administrative cost allocations;
• Toll operations expenses increased by $5,866,274, or 6%, due primarily to the required repair and
rehabilitation activities on the 91 Express Lanes;
• Transit and specialized transportation expenses increased by $49,307,323, or 58%, due to an increase
in bus transit operating and capital claims in Western County and Coachella Valley geographic areas
resulting from the availability of federal COVID-19 relief funds for transit operators in the previous
year;
• Interest expense related to governmental activities decreased by $1,069,260, or 4%, primarily as a
result of the net impacts of the current year's interest payments, amortization of the loss on refunding
bonds, and amortization of sales tax bond premiums; and
• Internal transfers increased $56,859,666, or 509%, due to the surplus funding on the 15/91 Express
Lanes Connector project from the 91 Express Lanes enterprise fund. Surplus funding is generated
from prior year toll revenues. The 15/91 Express Lanes Connector project will be completed during
FY 2023/24.
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The graphs below present the program and general revenues by source and program expenses for the
Commission's governmental activities for the fiscal years ended June 30, 2023 and June 30, 2022:
Revenues - Govemmental Activities
$285,000,000
$265,000,000
$245,000,000
$225,000,000
5205,000,000
$185,000,000
$165,000,000
5145,000,000
$125,000,000
$105,000,000
585,000,000
565,000,000
545,000,000
$25,000,000
$5,000,000
-$15,000,000
Charges for services
■ 2023 $314,643
• 2022 $392,868
8177,200,000
$157,200,000
8137,200,000
$117,200,000
597,200,000
$77,200,000
$57,200,000
537,200,000
$17,200,000
$(2,800,000)
Bicycle and Transit and
General Commuter Local streets and Motorist Planning and Regional Regional
government Pedestrian CETAP Commuter rail Highways roads assistance programming arterials conservation specialized Interest expense
assistance
facilities transportation
Operating grants and Capital grants and
contributions contributions
Measure A sales taxes
TDA sales taxes
Unrestricted
investment earnings
Other miscellaneous
revenue
581,558,262 5158,239,283 $287,428,762 5197,891,127 525,402,156 52,477,425
$179,656,964 571,849,461 5280,170,582 5180,682,280 -$14,295,090 $2,574,199
Expenses • Governmental Activities
■ 2023 $3,381,001 82,578,177 $1,046,199 $4,187,763 $58,899,642 8177,171,636 $87,229,315 $4,606,991 $8,099,856 $8,157,544 810,243,763 $134,722.,572 $29,443,644
■ 2022 $(2,868,799) 51,587,819 $5,181,055 $3,229,524 534,291,250 $159,525,490 $85,183,610 $4,322,295 $4,774,012 824,258,688 81,492,799 885,415,249 830,512,904
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The graphs below present the program and general revenues by source and program expenses for the
Commission's business -type activities for the fiscal years ended June 30, 2023 and June 30, 2022:
Expenses - Business -Type Activities
$116,000,000
$111,000,000
$106,000,000
$101,000,000
$96,000,000
$91,000,000
$86,000,000
$81,000,000
$76,000,000
$71,000,000
$66,000,000
$61,000,000
$56,000,000
$51,000,000
$46,000,000
$41,000,000
$36,000,000
$31,000,000
$26,000,000
$21,000,000
$16,000,000
$11,000,000
$6,000,000
$1,000,000
-$4,000,000
■ 2023
■ 2022
$75,000,000
$60,000,000
$45,000,000
$30,000,000
$15,000,000
■ 2023
■ 2022
RCTC 91 Express Lanes
$73,232,775
$69,463,323
1
15 Express Lanes
$29,329,925
$27,233,103
Revenues - Business -Type Activities
Charges for services
$112,707,067
$102,378,876
Unrestricted investment earnings
$5,985,986
-$3,452,703
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Financial Analysis of the Commission's Funds
Governmental Funds
The focus of the Commission's governmental funds is to provide information on a near -term inflows, outflows,
and balances of spendable resources. Such information is useful in assessing the Commission's financing
requirements.
As of June 30, 2023, the Commission's governmental funds reported combined ending fund balances of
$1,271,162,231, an increase of $166,516,025 compared to FY 2021/22. Less than 1%, or $1,877,579, is
nonspendable fund balance related to prepaid amounts; $2,568,283 is assigned fund balance for general
government administration activities; and an unassigned deficit of $3,392 is related to a deficit fund balance
in the Nonmajor governmental fund. The remainder of the fund balance is restricted to indicate the following
externally enforceable legal restrictions:
• $9,475,739 in TDA funds that have been allocated to jurisdictions within the County for bicycle and
pedestrian projects;
• $70,900,091 of TUMF funds for new CETAP corridors in Western County;
• $22,565,325 for Western County commuter assistance activities such as expansion of park -and -ride
facilities and other projects and programs that encourage commuters to use alternative modes of
transportation under the 2009 Measure A program;
• $81,104,176 in TDA, Measure A, and Proposition 1B funds for commuter rail operations and capital
projects and $2,257,390 in TDA and Proposition 1B funds for the Coachella Valley/San Gorgonio Pass
rail corridor;
• $11,871,675 in 2009 Measure A funds available to pay sales tax revenue bonds debt service over the
next year;
• $363,128,931 for highway, economic development, and new corridor projects related to the 1989
Measure A and 2009 Measure A programs;
• $13,328,700 in state funds for motorist assistance services;
• $8,631,578 of TDA funds and $28,174 intergovernmental funds for planning and programming
activities;
• $102,340,390 and $77,370,646 for regional arterial projects in Western County related to the 2009
Measure A and TUMF programs, respectively;
• $20,022,394 of Measure Afunds for transit and specialized transportation in the Western County and
$1,773,181 for specialized transportation in the Coachella Valley; and
• $481,921,371 in TDA funds available to the commuter rail and bus transit operations and capital in the
County, including state of good repair.
Coachella Valley Rail
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The following table presents the changes in fund balances for the governmental funds by fund category for
the fiscal years ended June 30, 2023 and 2022:
Fund Balances
Year Ended June 30
2023 2022 % Change
General fund
Special Revenue major funds:
Measure A Western County
Measure A Coachella Valley
Transportation Uniform Mitigation Fee
Local Transportation Fund
State Tra nsit Assistance
SB132
Capital Projects major funds:
$ 37,100,151
$ 35,788,510
438,154,128 379,440,191
96,210,303 84,343,540
148, 270,737 119,352,193
336,576,925 276,854,895
142,158,549 131,655,414
1,003,665 (385,823)
4%
15%
14%
24%
22%
8%
360%
Commercial Paper 13,392,732 15,043,286 -11%
Bonds 18,149,828 25,576,707 -29%
Debt Service fund 11,871,675 11,067,296 7%
Nonmajor governmental funds 28,273,538 25,909,997 9%
Total $1,271,162,231 $1,104,646,206
Key elements for the changes in fund balances are as follows:
• The 4% increase in the General fund resulted from increased commuter rail TDA funds transfers,
offset by the increase in commuter rail, planning and programming, and transit and specialized
transportation program expenditures;
• The 15% increase in the Measure A Western County Special Revenue fund was attributed to excess
2009 Measure A revenues and interest income, offset by increased commuter assistance, commuter
rail, local streets and roads, regional arterials, and transit and specialized transportation expenditures;
• The 14% increase in the Measure A Coachella Valley Special Revenue fund was attributed to excess
2009 Measure A revenues over expenditures for Coachella Valley highway, local streets and roads,
and regional arterial projects;
• The 24% increase in the TUMF Special Revenue fund was attributable to excess TUMF revenues over
CETAP and regional arterial expenditures;
• The 22% and 8% increase in the Local Transportation Fund and State Transit Assistance, respectively,
resulted from the excess of sales tax revenues over claims of allocations for transit operations and
capital projects and for bicycle and pedestrian facility projects;
• The 360% increase in the SB 132 fund resulted from reimbursement of project costs related to the
15/91 Express Lanes Connector project;
• The 11% decrease in the Commercial Paper Capital Projects fund was attributed to the use of excess
funds for the repayment of debt service;
• The 29% decrease in the Bonds Capital Projects fund was attributed to transfers out to the Measure
A Western County Special Revenue fund and 15 Express Lanes Enterprise fund for reimbursement of
project costs;
• The 7% increase in the Debt Service fund was attributable to an increase in; and
• The 9% increase in nonmajor governmental funds resulted primarily from the excess of State of Good
Repairs revenues over claims of allocations for transit operations and capital projects and excess
Freeway Service Patrol funding over program expenditures.
Proprietary Fund
The Commission's proprietary fund provides the same type of information found in the government -wide
financial statements.The net position of the proprietary fund totaled a deficit of $70,434,272 atJune 30, 2023.
The deficit is related to the RCTC 91 Express Lanes toll -supported debt in excess of capital and intangible
assets.
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General Fund Budgetary Highlights
The $2,419,800 increase in General Fund expenditure appropriations between the original budget and the
final amended budget for the General fund was related to the following changes:
• $812,400 decrease to general government for various operations support services;
• $884,500 decrease to the commuter rail program;
• $3,258,200 increase to the planning and programming program;
• $1,900 increase to transit and specialized transportation professional costs;
• $836,600 increase to lease and subscription IT debt service costs; and
• $20,000 increase to capital outlay.
During the year, General fund revenues were lower than budgetary estimates by $16,694,427; expenditures
were less than budgetary estimates by $30,940,103. General fund budgetary variances between the final
amended budget and actual amounts are as follows:
Year Ended June 30, 2023
General Fund Budgetary Variances Original Budget
Final Amended
Budget Actual %Variance
Revenues
Intergovernmental
Investment income
Other
Total revenues
Expenditures
Current
General government
Commuter rail
Planning and programming
Transit and specialized transportation
Debt service
Capital outlay
Total expenditures
Other financing sources (uses)
Transfers in
Transfers out
Total other financing sources (uses)
$ 22,610,600 $ 22,610,600
36,400 36,400
22,647,000
12,406,600
44,997,700
2,740,800
1,590,100
3,343,900
65,079,100
44,979,600
(2,990,800)
$ 41,988,800
22,647,000
11,594,200
44,113,200
5,999,000
1,592,000
836,600
3,363,900
67,498,900
44,979,600
(2,990,800)
$ 41,988,800
$ 5,225,498
725,357
1,718
5,952,573
30,738,018
3,972,025
911,442
836,270
101,042
36,558,797
31,925,738
(7,873)
$ 31,917,865
$ (17,385,102)
688,957
1,718
(16,694,427)
11,594,200
13,375,182
2,026,975
680,558
330
3,262,858
30,940,103
(13,053,862)
2,982,927
$ (10,070,935)
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60
Significant budgetary variances between the final amended budget and actual amounts are as follows:
• $17,385,102 negative variance for intergovernmental revenues primarily related to lower eligible
intergovernmental reimbursements due to lower commuter rail expenditures;
• $688,957 positive variance for investment income includes higher investment yields and unrealized
gains;
• $1,718 positive variance for other revenues related to commuter rail offender fees;
• $11,594,200 positive variance for general government expenditures related to the administrative cost
allocations process;
• $13,375,182 positive variance for commuter rail expenditures related to lower Metrolink operations
costs due to the availability of federal relief funds to SCRRA and delay in various rail capital projects;
• $2,026,975 positive variancefor planning and programming expenditures related to lower professional
services, special studies, planning allocations, and other expenditures such as staff support;
• $680,558 positive variance for transit and specialized transportation expenditures related to lower
professional services, special studies, and other expenditures such as staff support;
• $330 positive variance for debt service expenditures related to the GASB Statement No. 87 Leases
and GASB Statement No. 96 Subscriptions;
• $3,262,858 positive variance for capital outlay expenditures related to implementation of replacement
of finance enterprise resource planning system and rail station improvements;
• $13,053,862 negative variance for transfers in related to the administrative cost allocations process
and lower commuter rail activities than anticipated; and
• $2,982,927 positive variance for transfers out related to the administrative cost allocations process
that affected commuter rail, planning and programming, and transit and specialized transportation
activities.
Capital Assets
As of June 30, 2023, the Commission had $1,351,213,184, net of accumulated depreciation and
amortization, invested in a broad range of capital assets including development and construction in progress
and easements; land and land improvements; construction rail operating easements, stations, and tracks;
buildings; toll infrastructure; transponders; toll facility franchise; office improvements, furniture, equipment,
and vehicles; and leased and subscription IT assets. The total increase in the Commission's total capital assets,
net for FY 2022/23 was 5% and primarily attributable to construction in progress for the 15/91 Express Lanes
Connector project and right of way acquisition for the SR -91 project.
Major capital asset additions during 2023 included construction in progress for the 15/91 Express Lanes
Connector project, rail station improvements, right of way acquisition, and construction easements on various
projects. Capital assets includes the implementation of GASB Statement No. 87, Leases and GASB Statement
No. 96, Subscriptions, reflecting the right to use assets for land, buildings, equipment, and subscription IT.
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The table below is a comparative summary of the Commission's capital assets, net of accumulated
depreciation:
Governmental Activities
2023
2022
Business -Type Activities Total
2023 2022 2023 2022
Capital assets not being depreciated:
Land and land improvements
Construction easements
Rail operating easements
Construction in progress
Development in progress
Total capital assets not being
depreciated
$ 179,033,069
4,202,495
63,846,199
256,932,495
675,604
504,689,862
$ 170,015,793
4,202,495
63,846,199
186,511,029
832,094
425,407,610
$ 19,237,061 $ 11,990,286 $ 198,270,130
259,657 259,657 4,462,152
63,846,199
6,229,120 4,614,768 263,161,615
675,604
$ 182,006,079
4,462,152
63,846,199
191,125,797
832,094
25,725,838 16,864,711 530,415,700 442,272,321
Capital assets being depreciated and
amortized, net of accumulated
depreciation and amortization:
Rail stations 116,671,691
Rail tracks 118,701,546
Temporary construction easements 368,352
Buildings and building
improvements
Toll infrastructure
Transponders
Toll facility franchise
Office improvements, furniture,
equipment, and vehicles
Total capital assets, net of
accumulated depreciation and 236,479,029
amortization
122,988,654
123,881,250
740,774
5,167,778 6,027,357
17,231,726 22,851,446
9,888
558,282,209 568,238,032
737,440 300,587 56,100 90,595
116, 671, 691 122,988,654
118,701,546 123,881,250
368,352 740,774
5,167,778 6,027,357
17,231,726 22,851,446
9,888
558,282,209 568,238,032
793,540 391,182
247,911,265 580,737,813 597,217,318 817,216,842 845,128,583
Intangible right to use leased assets,
net of accumulated amortization
Land 8,401 16,803
Buildings 2,636,321 3,246,658
Equipment 33,795 63,910
Total intangible right to use
leased assets, net of accumulated 2,678,517 3,327,371
amortization
Intangible right to use subscription
IT assets, net of accumulated
amortization
8,401 16,803
2,636,321 3,246,658
33,795 63,910
2,678,517 3,327,371
902,125 1,125,117 902,125 1,125,117
Total capital assets $ 744,749,533 $ 677,771,363 $ 606,463,651 $ 614,082,029 $1,351,213,184 $1,291,853,392
On March 20, 2017, the 91 Project was substantially completed and the RCTC 91 Express Lanes opened
to motorists. In connection with a toll facilities agreement with Caltrans, or service concession agreement,
the Commission may collect tolls and operate and maintain a toll facility on SR -91 from the Orange/
Riverside County line to 1-15 for 50 years from opening. On April 10, 2021, the 1-15 Express Lanes project
was substantially completed and the 15 Express Lanes opened to motorists; the 15 Express Lanes began
tolling on April 14, 2021. In connection with a toll facilities agreement with Caltrans, or service concession
agreement, the Commission may collect tolls and operate and maintain a toll facility on 1-15 between Cajalco
Road in Corona and SR -60 in Jurupa Valley for 50 years from opening and commencement of tolling.
More detailed information about the Commission's capital assets is presented in Note 5 to the financial
statements.
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Debt Administration
As of June 30, 2023, the Commission had $1,690,797,309 outstanding in sales tax and toll revenue bonds,
including a TIFIA loan as follows:
Sales tax revenue bonds $ 788,875,246
Toll revenue bonds 734,891,709
TIFIA loan 167,030,354
Total outstanding sales tax and toll revenue bonds $ 1,690,797,309
The total debt decreased from the $1,726,159,056 outstanding as of June 30, 2022 primarily due to the
following:
Balance Balance
June 30, 2022 Additions Reduction June 30, 2023
Governmental activities
Sales tax revenue bonds
Sales tax bonds premium
$ 747,320,000 $
83,418,739
- $ (31,405,000) $ 715,915,000
- (10,458,493) 72,960,246
Business -type activities
Toll revenue bonds 678,665,952 4,394,620 - 683,060,572
Toll revenue bonds premium 54,368,512 - (2,537,375) 51,831,137
TIFIA loan 162,385,853 4,644,501 - 167,030,354
Total outstanding sales tax and toll revenue bonds $ 1,726,159,056 $9,039,121 $44,400,868 $ 1,690,797,309
• Sales tax revenue bonds was reduced by $41,863,493 due to reductions resulting from principal
payments in the amount of $31,405,000 and premium amortization of $10,458,493; and
• Toll revenue bonds increased $4,394,620 due to the accretion of the 2013 Toll Revenue Bonds and
premium amortization of $2,537,375; and
• TIFIA loan increased $4,644,501 due to compounded interest.
The Commission's sales tax revenue bonds received ratings of "AA+" from S&P Global Ratings (S&P), "Aa2"
from Moody's Investors Service (Moody's), and "AA+" from Fitch Ratings (Fitch), and the toll revenue bonds
related to the 91 Project received ratings of "A" and "BBB+" from S&P and Fitch, respectively. The TIFIA loan
related to the 1-15 Express Lanes project received ratings of "BBB" from Kroll Bond Rating Agency and "BBB -
"from Fitch.
In March 2005 the Commission established a commercial paper program, currently authorized at $60,000,000
to provide advance funding for 2009 Measure A capital projects. The commercial paper notes are rated
"Al +" by S&P and "P1" by Moody's. As of June 30, 2023, the Commission had $0 in commercial paper notes
outstanding.
As of June 30, 2023, outstanding debt for the Commission is $715,915,000, which is $259,085,000 under
the debt limit of $975,000,000 required by the 2009 Measure A ordinance. The Commission had authorized
the issuance of toll revenue bonds, for the 91 Project not to exceed $900,000,000, which is in excess of the
total outstanding debt of $683,060,572. In March 2020, the Commission authorized the sale and issuance of
not to exceed $725 million of toll revenue refunding bonds and prepaid the TIFIA loan in October 2021. The
Commission also authorized the issuance of a TIFIA loan, for the 1-15 Express Lanes project not to exceed
$165,000,000, which is in excess of the total outstanding debt of $167,030,354 due to annual accrued
compounding interest. TIFIA loans provided federal funding up to $152,214,260 for the 1-15 Express Lanes
project on a senior lien basis.
Additional information on the Commission's long-term debt can be found in Note 6tothefinancial statements.
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Economic Factors and Other Factors
During its March 2023 Commission meeting, the Commission adopted guiding principles for use in the
preparation of the FY 2023/24 Budget. These principles have been incorporated in goals of the Commission
and will continue to be updated annually in response to the ever-changing social, political, and economic
environment. The principles are a business planning tool designed to assistthe Commission in implementing
its strategic goals and objectives and lays the foundation for future financial planning for the annual budget
process.
The Commission adopted the FY 2023/24 annual budget on June 14, 2023. Approximately 53% of the
$983,490,200 balanced budget is related to capital project expenditures, including:
• $4,258,700 for completion of right of way acquisition, construction, and design -build activities
related to the 91 Project consisting of tolled express and general-purpose lanes and interchange
improvements, including the eastbound lane to McKinley Avenue;
• $8,516,200 for repair and rehabilitation of the 91 Express Lanes;
• $1,350,000 for repair and rehabilitation of the 15 Express Lanes;
• $3,385,600 for construction and engineering activities related to the 91 Corridor Operations project
(COP), including the eastbound COP;
• $1,378,300 for engineering, construction, design -build, and right of way activities related to the 1-15
Express Lanes projects;
• $38,389,000 for construction, design -build, and right of way activities related to the 15/91 Express
Lanes Connector project;
• $13,439,000 for engineering related to the 1-15 Express Lanes -Southern Extension project;
• $4,999,500 for engineering and construction related tothe 1-15 Corridor Operations project, including
the interim project;
• $448,700 for right of way support services, engineering, and construction related to the 1-15/Railroad
Canyon Interchange project;
• $66,221,900 for engineering, right of way activities, and construction related to the 71/91 Connector
project;
• $19,642,400 for right of way activities and construction related to the Western County SB 132 projects
for which the Commission is not the lead agency;
• $6,756,700 engineering and right of way activities related to the Santa Ana River Trail Extension
projects for which the Commission is the lead agency for the Riverside County Regional Park and
Open Space District;
• $1,205,300 for engineering and right of way for the I-10/Highland Springs interchange;
• $1,147,500 for engineering, construction and right of way related to the SR -60 Truck Lanes project;
• $16,180,000 of engineering and construction related to the smart freeways project;
• $193,544,800 for various Western County Measure A and TUMF regional arterial projects;
• $33,694,700 for engineering, construction, and right of way acquisition/support services for the Mid
County Parkway projects; and
• $29,112,800 for engineering, construction, and right of way activities for various rail station upgrades.
Distributions to the local jurisdictions for local streets and roads are budgeted at $84,545,100. Budgeted
expenditures related to funding of public bus transit operations and capital projects in the County aggregate
$252,272,300. Debt service costs are $91,416,200, or 9% of the budget.
While capital and operating grants and contributions continue to be an important source of funding for
Commission capital projects, they only represent 27% of total revenues as of June 30, 2023. General revenues
along with charges for services represent the majority of revenues at 73%. Specifically, the increase in this
revenue source is reflected in higher than anticipated sales tax and strong management of the Commission's
express lanes via the receipt of higher than projected toll revenues. While the transportation needs for the
20
64
County continue to remain high, the Commission is poised to leverage its recent strong financial performance
to meet its debt covenants and deliver on the projects outlined in the Measure A ordinance.
The Commission continues to study alternative financing alternatives such as tolled express lane facilities and
federal financing programs to support the delivery of 2009 Measure A projects.
Contacting the Commission's Management
This financial report is designed to provide a general overview of the Commission's finances for all those
with an interest in the government's finances and to show the Commission's accountability for the money
it receives. Questions concerning any of the information provided in this report or requests for additional
information should be addressed to the Chief Financial Officer, Finance Department at the Riverside County
Transportation Commission, 4080 Lemon Street, 3rd Floor, P.O. Box 12008, Riverside, California 92502-2208.
Freeway Service Patrol
65
RIVERSIDE
COUNTY
TRANSPORTATION
COMMISSION
22
66
1-215 Placentia Interchange
67
RIVERSIDE
COUNTY
TRANSPORTATION
COMMISSION
Riverside County Transportation Commission
Statement of Net Position
June 30, 2023
Governmental Business -type
Activities Activities
Total
Assets
Cash and investments $ 1,084,916,744 $ 78,320,067 $ 1,163,236,811
Receivables:
Accounts 173, 002, 080 5,580,2M 178, 582, 328
Violations - 33,668 33,668
Advancesto other governments 15,469, 941 - 15,469,941
Interest 17, 994, 598 1,552,938 19, 547, 536
Leases 2,321,702 291,175 2,612,877
Internal balances 33,358,175 (33,358,175) -
Due from other governments 234,345 - 234,345
Prepaid expensesand other assets 1,877,579 280,668 2,158, 247
Restricted cash and investments 26, 094, 316 173, 673, 879 199, 768,195
Net other post -employment benefitsassets 622,475 82,125 704,600
Capital assets not being depredated 504, 689, 862 25, 725, 838 530,415,700
Capital assets, net of accumulated depreciation and amortization 236,479,029 580,737,813 817,216,842
Intangible right to use lease asset, net of amortization 2,678,517 2,678,517
Intangible right to use subscri pti on ITasset, net of amortization 902,125 902,125
Total assets 2,100, 641,488 832, 920, 244 2, 933, 561,732
Deferred outflows of resources
Loss on refunding of bonds 28,91Z 798 14, 237,108 43,149, 906
Pension related 8,112, 517 1,070,321 9,182, 838
Other post -employment benefits related 1,812,030 239,070 2,051,100
Total deferred outflows of resources 38, 837, 345 15, 546,499 54,383,844
Total assets and deferred outf I ows of resources 2,139,478,833 848,466,743 2,987,945,576
liabilities
Accounts paya bl e 71, 762, 407 11, 642, 456 83, 404, 863
Interest payable 3,079,003 3,550,248 6,629,251
Otherliabilities 4,769,209 699,274 5,468,483
Long-term liabilities:
Due within one year- bonds, leases, subscri ptions, and com pensated a bsences 43, 013, 742 2,642, 026 45, 655, 768
Due in more tha n one year
Net pension liabilities 1,650,549 217,764 1,868,313
Bonds, loans, leases, a nd com pensated absences 750,877,201 899,451,977 1,650,329,178
Total liabilities 875,152,111 918, 203, 745 1, 793, 355, 856
Deferred inflows of resources
Pension related
Leases
Other post -employment benefits related
Total deferred inflows of resources
Total liabilitiesanddeferred inflowsof resources
Net position
Net investment (defict) i n capital assets
Restricted for:
Other post -employment benefits
Bicydaand pedestrian fad lHies
CETAP
Commuter assistance
Commuter rail
Debt service
Highways
Motorist assistance
Expresslanes
Planning and programming
Regional arterials
Regional conservation
Transit and spedal ized transportation
Unrestricted(deficit)
Total net position
See notesto basicfinandal statements
2,681,898
2,254,532
467,077
5,403,507
880, 555, 618
353,835
281,812
61,623
3,035,733
2,536,344
528,700
697,270 6,100, 777
918, 901, 015 1, 799, 456, 633
483, 304, 687 (176, 735, 962) 306, 568, 725
1,967,428 259,572 2,227,000
9,475,739 9,475,739
70,900,091 70,900,091
22, 566,548 - 22, 566, 548
83, 456, 024 - 83, 456, 024
11,871,675 - 11,871,675
380,100, 982 - 380,100,982
13,341,945 13,341,945
106, 042,118 106,042,118
8,661,106 8,661,106
179,711,036 - 179,711,036
1,030 - 1,030
503, 717, 557 - 503, 717, 557
(510,152,633) (510,152,633)
1,258,923,215 $ (70,434,272) $ 1,188,488,943
24
68
Riverside County Transportation Commission
Statement of Activities
Year Ended June 30, 2023
Program Revenues
Net(Expense) Revenue
and Changes in NetPosition
Charges for Operating Grants Capital Grants Govemmental Business -type
Functions/Programs Expenses Services and Contributions and Contributions Activities Activities
Pri mary Government
Governmental Activities:
General government $ 3,381,001 $
Bicycle and pedestrianfad lities 2,578,177
CETAP 1,046,199
Commuter assistance 4,187, 763
Commuter rail 58,899, 642
Highways 177,171,636
Local streets and roads 87,229,315
Motorist assistance 4,606,991
Planning and programming 8,099,856
Regional arterials 8,157, 544
Regional conservation 10,243,763
Transit and special ized transportati on 134,722,572
Interest expense 29,443, 644
Total governmental activities 529,768,103
Total
15 $ $ - $ (3,380,986) $ $ (3,380,986)
(2,578,177) - (2,578,177)
16,507,426 - 15,461,227 - 15,461,227
4,278,521 90,758 - 90,758
314,628 4,506,768 11,649,788 (42,428,458) - (42,428,458)
6,666,681 145,905,043 (24,599,912) (24,599,912)
- (87,229,315) (87,229,315)
5,163,782 - 556,791 556,791
2,978,987 (5,120,869) - (5,120,869)
17, 225, 315 684,452 9,752,223 - 9,752,223
8,474,565 (1,769,198) - (1,769,198)
15,756,217 (118,966,355) - (118,966,355)
(29,443,644) - (29,443,644)
314,643 81,558,262 158,239,283 (289,655,915) - (289,655,915)
Busi ness-type Activities:
RCTC91Express lanes 73,232,775 73,335,918 - - - 103,143 103,143
15Expresstanes 29,329,925 39,371,149 - - - 10,041,224 10,041,224
Total Business -type activities 102,562,700 112,707,067 - - - 10,144,367 10,144,367
Total Primary Government
$ 632,330,803 $ 113,021,710 $ 81,558,262 $ 158,239,283 (289,655,915) 10,144,367 (279,511,548)
See notestobasicfinancial statements
General Revenues:
Measure A sa I es taxes 287, 428, 762 287, 428, 762
Transportati on Devel opment Actsal estaxes 197,891,127 197,891,127
Unrestricted i nvestment earnings 25,402,156 5,985,986 31,388,142
Other m i scel I a neous reveue 2,477,425 2,477,425
Transfers 45,694,519 (45,694,519)
Total general revenuesand transfers 558,893,989 (39,708,533) 519,185,456
Change in net position 269,238,074 (29,564,166) 239,673,908
Net posi ti on (defi d t) at beginning of year 989,685,141 (40,870,106) 948,815,035
Net position (defidt) at end of year $ 1,258,923,215 $ (70,434,272) $ 1,188,488,943
25
69
Riverside County Transportation Commission
Balance Sheet -Governmental Funds
June 30, 2023
Major Funds
Special Revenue
General
Transportation
MeasureA MeasureA Uniform Local State
Westem Coachella Mitigation Transportation Transit
County Valley Fee Fund Assistance 58132
Assets
Cashandinvestments $ 12,016,655 $ 369,783,953 $ 96,845,437 $ 139,921,289 $ 301,716,823 $ 132,737,758 $ Receivables
Accounts 7,165, 495 93,848,197 9,782,995 10,465,104 32, 272, 361 9,675,159 3,843,106
Advances - - - -
Interest 427,409 6,223,895 1,459,588 2,111,831 4,459,925 1,994,314 733,822
Leases 2,104,852 216,850 -
Duefromotherfunds 21,075,415 893,021 140,418 38,955 - - 23,292,170
Advancesto other funds 11,727,273
Prepaid expendituresand other assets 541,973 1,334,576
Restricted cash and i nvestments
Total assets $ 41,226,947 $ 485,915,767 $ 108,228,438 $ 152,754,029 $ 338,449,109 $ 144,407,231 $ 27,869,098
liabi I iti es, deferred i nfl ows of resources, and fund balances
liabilities
Accountspayable $ 3,735,107 $ 38,385,782 $ 11,408,939 $ 3,714,179 $ 1,255,284 $ 1,496,198 $ 9,719,125
Advancespayable - -
Duetootherfunds 7,872 1,394,342 609,196 560,510 616,900 752,484 17,146,308
0therliabilities 383,817 1,333,795 Total liabilities 4,126,796 41,113,919 12,018,135 4,274,689 1,872,184 2,248,682 26,865,433
Deferred i nflowsof resources
Leases 2,045,929 208,603
Unavailable revenues - 4,601,791
Total deferred inflows of resources - 6,647,720 - 208,603
Fund balances
Nonspendable
Prepaid amounts 541,973 1,334,576 - - - - -
Rest ri ded for
Bicycle andpedestrianfacilities - - 9,475,739 - -
CETAP - - 70,900,091 - - Commuter assistance 22,565,325 - - - Commuter rail 25,358,317 55,745,859 - - - - -
Debtservice - - - -
Highways - 236,145,584 94,437,122 - - 1,003,665
Motori st assi sta nce - -
Planningandprogramming 8,631,578 - - -
Regional arterials 102,340,390 - 77,370,646 - -
Transit and sped alizedtransportation 20,022,394 1,773,181 327,101,186 142,158,549 -
Assigned
General government 2,568,283 - - - - - -
Unassigned - - -
Totalfundbalances 37,100,151 438,154,128 96,210,303 148,270,737 336,576,925 142,158,549 1,003,665
Total liabilities, deferred i nfl ows of resources, and fund balances $ 41,226,947 $ 485,915,767 $ 108,228,438 $ 152,754,029 $ 338,449,109 $ 144,407,231 $ 27,869,098
See notesto basicfinancial statements
26
70
Riverside County Transportation Commission
Balance Sheet - Governmental Funds, Continued
June 30, 2023
Major Funds
Capital Projects
Assets
Cash and investments
Receivables
Accounts
Advances
Interest
Leases
Due from other funds
Advancesto otherfunds
Prepaid expenditures and other assets
Restricted disband investments
Total assets
Liabilities, deferred inflows of resources, andfundbalances
Liabilities
Accountspayable
Advancespayable
Due tootherfunds
0therliabilities
Total liabilities
Com mercial
Paper
Bonds
Other
Non m ajor
Debt Governmental
Service Funds
Total
425, 254 $ 66,504 $ 4,544,533
13, 360,187 2,109, 754
26,673 43,674 82,751
434,145 67,894
18, 709, 507 7,384,809
$ 26,858,538 $ 1,084,916,744
5,949,663 173, 002, 080
15,469,941
430,716 17,994,598
2,321,702
283,330 46, 225, 348
11,727,273
1,030 1,877,579
26, 094, 316
$ 14,246,259 $ 20,997,333 $ 12,012,093 $ 33,523,277 $ 1,379,629,581
853,527
2,727,273
120,232
140,418
$ 2,047,793 $ 71, 762, 407
639,143
2,549,558
2,727,273
21,867,173
5,240,929
853,527 2,847, 505 140,418 5,236,494 101, 597, 782
Deferred i nfl owsof resources
Leases - - - 2,254,532
Unavailable revenues - - - 13,245 4,615,036
Total deferred i nfl ows of resources - - - 13,245 6,869,568
Fund balances
Nonspendable
Prepaid amounts 1,030 1,877,579
Restrictedfor
Bicydeandpedestrianfadlities - - - - 9,475,739
CETAP - - - - 70,900,091
Commuter assistance - - 22, 565, 325
Commuter rail - - - 2,257,390 83,361,566
Debt service 11,871,675 - 11,871,675
Highways 13,392,732 18,149,828 363,128,931
Motorist assistance - - 13, 328, 700 13, 328, 700
Planningandprogramming - - - 28,174 8,659,752
Regional arterials - - - 179,711,036
Transit and sped a I i zed tra nsportati on - - - 12,661,636 503,716,946
Assigned
General government - 2,568,283
Unassigned (3,392) (3,392)
Total fund balances 13,392,732 18,149,828 11,871,675 28,273,538 1,271,162,231
Total I i abi I iti es, deferred i nfl ows of resources, and fund balances $ 14,246,259 $ 20,997,333 $ 12,012,093 $ 33,523,277 $ 1,379,629,581
See notesto basicfinandal statements
27
71
(,;�rr,irl r'Mld
rr ilrt
tiblb
28
72
Riverside County Transportation Commission
Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Position
June 30, 2023
Total fund balances - Governmental funds page 27 $ 1,271,162,231
Amounts reported forgovernmental activities in thestatementof net position page24 aredifferentbecause:
Amounts duefromother governments arenotan availableresourceand therefore, are not reported in thefunds.
Deferred outflows of pension resources arenotavailableto payforcurrent-period expenditures and, therefo re, are not reported in thefunds.
Deferred inflows of pension resources arenotdueand payable in thecurrentperiod and, therefore, are not reported in thefunds.
Deferred outflows of otherpost-employment benefits resources arenotavailableto payforcurrent-period expenditures and, therefore, are not reported in the
funds. 1,812,030
234,345
8,112,517
(2,681,898)
Deferred inflows of otherpost-employment benefits resources are notdueand payablein thecu rrent period and, therefo re, are not reported in thefunds. (467,077)
Capital and rightto useleased and subscriptions assets, less related accumulated depreciation and amortization, used in governmental activities arenot
financial resources and therefo reare not reported in thefunds.
Certain revenues arenotavailableto payforcurrentperiod expenditures and, therefore, are reported as deferred inflows of resources in thefunds.
Interest payableon long-term debtoutstanding is notdueand payableinthecurrentperiod and thereforeis not reported in thefunds.
Net otherpost-em ploymentasset is not reported in thefunds.
Net pension liabilities are not reported in thefunds.
Long-term liabilities arenotdueand payablein thecurrentperiod and thereforearenot reported in thefunds. Those liabilities consist of:
744,749,533
5,086,756
(3,079,003)
622,475
(1,650,549)
Compensated absences (1,302,661)
Intangiblerightto useleaseand subscription IT assets (3,713,036)
Sales tax bonds payable (715,915,000)
Loss on refunding of sales tax bonds 28,912,798
Premium on sales tax revenuebonds payable (72,960,246)
Net adj u stm ent (764,978,145)
Net position of governmental activities page 24 $ 1,258,923,215
Seenotes to basic financial statements
29
73
Riverside County Transportation Commission
Statement of Revenues, Expenditures and Changes in Fund Balances -Governmental Funds
Year Ended June 30, 2023
MajorFunds
Special Revenue
Revenues
Sal es taxes
Transportati on U niform Mitigation Fee
Intergovernmental
Investment income
Other
Total revenues
Expenditures
Current:
General
Transportation
MeasureA MeasureA Uniform Local State
Westem Coachella Mitigation Transportation Transit
County Valley Fee Fund Assistance SB132
230, 590, 476 $ 55, 658, 839 $ $ 156, 282, 435 $ 37, 244, 079 8
34, 416, 894 -
5,225,498 61, 730, 536 15,438,482 99, 942, 971
725,357 7,059,918 1,958,771 2,860,762 5,616,669 2,874,905 1,003,838
1,718 3,530,551 22,916 5,125 963,200
5,952,573 302,911,481 57,617,610 37,300,572 177,337,586 40,124,109 101,910,009
General government - 336,045 - 12,000 - -
Bicydeandpedestrianfacilities - - 2,578,177 - -
CETAP - - 1,011,752 - Commuter assistance 4,030,094 - - - - -
Commuter rail 30,738,018 19, 310, 998 - -
Highways - 85,048,360 15,327,959 - - 154,469,677
Local streetsandroads - 66,569,274 19,480,594 - Motorist assistance - -
Planningandprogramming 3,972,025 - 1,415,000 -
Regional arterials 4,626,056 - 3,466,066 -
Regional conservation - -
Transitandspedalizedtransportation 911,442 7,100,026 11,082,712 85,870,179 25,904,190
Total programs 35,621,485 187,020,853 45,891,265 4,477,818 89,875,356 25,904,190 154,469,677
Debt service:
Prindpal 787,736 22,361 - - - -
Interest 48,534 559 - - - -
Total debt service 836,270 22,920
Capital outlay 101,042 4,763,984
Total expenditures 36,558,797 191,807,757 - 45,891,265 - 4,477,818 - 89,875,356 25,904,190 154,469,677
Excess(defi deny) of revenuesover (under)
expenditures (30,606,224) 111,103,724 11,726,345 32,822,754 87,462,230 14,219,919 (52,559,668)
0therfi nand ng sources( uses):
Transfersin 31,925,738 15,103,584 140,418 70,362 53,949,156
Transfers out (7,873) (67,493,371) (3,974,572) (27,740,200) (3,716,784)
Total other fi nand ngsources(uses) 31,917,865 (52,389,787) 140,418 (3,904,210) (27,740,200) (3,716,784) 53,949,156
Net change in fund balances
Fund balancesat beginning of year
Fund balancesat end of year
See notesto basicfinandal statements
1,311,641
35, 788, 510
58, 713, 937
379,440,191
11,866, 763
84,343,540
28, 918, 544
119, 352,193
59, 722, 030
10, 503,135
276,854,895 131,655,414
1,389,488
(385,823)
$ 37,100,151 $ 438,154,128 $ 96, 210, 303 $ 148, 270, 737 $ 336, 576, 925 $ 142,158, 549 $ 1,003,665
30
74
Riverside County Transportation Commission
Statement of Revenues, Expenditures and Changes in Fund Balances - Governmental Funds
Year Ended June 30, 2023
MajorFunds
Capital Projects
Commercial
Paper
Bonds
Other
Nonmajor
Debt Govemmental
Service Funds
Total
Revenues
Sal es taxes $ - $ - $ - $ 5,544,060 $ 485,319,889
Transportation Uniform Mitigation Fee - - 34,416,894
Intergovernmental 2,812,132 15,873,944 201,023,563
Investment income 971,537 805,556 973,150 619,793 25,470,256
Other 4,523,510
Total revenues 971,537 805,556 - 3,785,282 22,037,797 750,754,112
Expenditures
Current:
General government - - - - 348,045
Bicycle and pedestrianfad lities - - 2,578,177
CETAP - - 1,011,752
Commuter assistance - - - - 4,030,094
Commuter rail - - - 283,331 50, 332, 347
Highways - - - 254,845,996
Local streets androads - 1,179,447 87,229,315
Motorist assistance - - 4,507,515 4,507,515
Planning and programming - - - 1,901,795 7,288,820
Regional arterials - - - 8,092,122
Regional conservation - - - 8,476,417 8,476,417
Transit and spedalizedtransportation - - - 3,554,081 134,422,630
Total programs - - - - 19,902,586 563,163,230
Debt service:
Prindpal - - 31,405,000 - 32,215,097
Interest - - 38,150, 288 - 38,199, 381
Total debt service - - - 69,555,288 - 70,414,478
Capital outlay - 4,865,026
Total expenditures - - - - 69,555,288 - 19,902,586 638,442,734
Excess(defi ci ency) of revenues over (under)
expenditures 971,537 805,556 - (65,770,006) 2,135,211 112,311,378
Other fi nanci ng sources (uses):
Transfersin 69,526,935 3,083,330 173,799,523
Transfers out (2,622,091) (8,232,435) (2,952,550) (2,855,000) (119,594,876)
Total other fi nanci ng sources (uses) (2,622,091) (8,232,435) - 66,574,385 228,330 54,204,647
Net change i nfund balances (1,650,554) (7,426,879) - 804,379 2,363,541 166,516,025
Fund balancesat begi nning of year 15,043,286 25,576,707 11,067,296 25,909,997 1,104,646,206
Fundbalancesatendofyear $ 13,392,732 $ 18,149,828 # $ 11,871,675 $ 28,273,538 $ 1,271,162,231
See notesto basicfinandal statements
31
75
Riverside County Transportation Commission
Reconciliation of the Statement of Revenues, Expenditures and Changes in
Fund Balances of Governmental Funds to the Statement of Activities
Year Ended June 30, 2023
Net change in fund balances - Total governmental funds page 31 $ 166,516,025
Amounts reported forgovernmental activities in thestatementofactivities page25 aredifferent because:
Governmental funds repo rt capital outlays as expenditures. However, in thestatement of activities, thecostof thoseassets is allocated overits estimated useful lives
and reported as depreciation expense. Theadjustmentcombinesthenetchanges ofthefollowing amounts:
Capital outlay 89,320,442
Depreciation expense (12,960,297)
Net adj ustm ents 76,360,145
Intangiblerightto use leased assets amortization (648,854)
Intangiblerightto usesubscription IT assets amortization (222,992)
Revenues in thestatementof activities thatdo notprovidecurrentfinancial resources are not reported as revenues in thefunds. 2,557,549
Theissuanceoflong-term debt(e.g., bonds)provides currentfinancial resources to governmental funds, whiletherepaymentoftheprincipal of long-term debt
consumesthecurrentfinancial resources of governmental funds. Neithertransaction, however, has anyeffecton net position. Also, g overnmental funds reportthe
effectof premiums, discounts, and similaritemswhen debt is first issued, whereastheseamounts aredeferred and amortized in thestatementofactivities. The
adjustmentcombinesthenetchanges ofthefollowing amounts:
Principal payments forsales tax revenue refunding bonds 11,430,000
Principal paymentfo rsales tax revenue bo nds 19,975,000
Amortization of sales tax revenue bonds premium 10,458,493
Amortization of loss on 20176 Refunding Bonds (1,807,050)
Changein accrued interest 104,295
Principal paymentforintangiblerightto useleaseassets 599,606
Principal paymentforintangiblerightto usesubscription IT assets 210,491
Net pension liability (7,378,304)
Pension changein deferred outflows of resources (1,792,060)
Pension changein deferred inflows of resources 1,320,485
Net otherpost-employment benefits asset (1,703,701)
Otherpost-employment benefits changein deferred outflows of resources 822,174
Otherpost-employment benefits changein deferred inflows of resources 1,072,929
Netadjustments 33,312,358
Someexpenses reported in thestatementof activities do not requiretheuseof currentfinancial resources and thereforearenot reported as expenditures in
governmental funds. Theadjustmentcombinesthenetchanges ofthecompensated absences. (126,028)
Theeffectofcontributions and transfers between theGovernmental and Business-typeactivities.
Contribution of capital and intangibleassets (8,510,129)
Change in net position of governmental activities page 25 $ 269,238,074
Seenotes to basic financial statements
33
77
Riverside County Transportation Commission
Statement of Net Position
Proprietary Fund
June 30, 2023
Business -Type Activities
RCTC 91 Express
Lanes Enterprise 15 Express Lanes
Fund Enterprise Fund
Total
Assets
Currentassets:
Cash and investments $ 74,321,586 $ 3,998,481 $ 78,320,067
Receivables
Accounts 2,500,377 3,079,871 5,580,248
Interest 1,448,791 104,147 1,552,938
Lease 45,948 45,948
Violations 33,668 - 33,668
Duefrom Enterprisefunds 9,364 9,364
Prepaid expenses 137,697 142,971 280,668
Total current assets 78,442,119 7,380,782 85,822,901
Noncurrentassets:
Restricted cash and investments
Lease receivabl e
Other post -employment benefits assets
Capital assets, net:
Nondepreciable
Depreciableand amortizable
Total noncurrentassets
Total assets
94,326,728 79,347,151 173,673,879
245,227 245,227
54,302 27,823 82,125
25,114,083
224,618,462
344,113, 575
422,555,694
611,755 25,725,838
356,119,351 580,737,813
436,351,307 780,464,882
443,732,089 866,287,783
Deferred outflows of resources
Pension benefits 707,709 362,612 1,070,321
Other post -employment benefits 158,076 80,994 239,070
Refunding bonds 14,237,108 - 14,237,108
Total deferred outflows of resources 15,102,893 443,606 15,546,499
Total assets and deferred outflows of resources 437,658,587 444,175,695 881,834,282
Liabilities
Current liabilities:
Accounts payable 9,276,311 2,366,145 11,642,456
Interest payable 1,852,837 1,697,411 3,550,248
Dueto Commission funds 24,247,520 110,655 24,358,175
Dueto Enterprisefunds 9,364 9,364
Other liabilities 536 698,738 699,274
Compensated absences liability 69,199 35,452 104,651
Bonds payable- due in less than oneyear 2,537,375 2,537,375
Total current liabilities 37,993,142 4,908,401 42,901,543
Noncurrent liabilities:
Net pension liabilities 143,988 73,776 217,764
Compensated absences liability 44,493 22,795 67,288
Advancefrom otherCommission fund - 9,000,000 9,000,000
Bonds payable-duein morethan oneyear 732,354,334 167,030,355 899,384,689
Total noncurrent liabilities 732,542,815 176,126,926 908,669,741
Total liabilities 770,535,957 181,035,327 951,571,284
Deferred inflows of resources
Pension benefits 233,960 119,875 353,835
Other-postemploymentbenefits 40,746 20,877 61,623
Lease revenues - 281,812 281,812
Total deferred inflows of resources 274,706 422,564 697,270
Total liabilities and deferred inflows of resources 770,810,663 181,457,891 952,268,554
Net position
Net investment(deficit) in capital assets (381,252,809) 204,516,847 (176,735,962)
Restricted forotherpost-employmentbenefits 171,632 87,940 259,572
Restricted fo rto I I operations 47,929,101 58,113,017 106,042,118
Total net position (deficit) $ (333,152,076) $ 262,717,804 $ (70,434,272)
See notes to basic financial statements
34
78
Riverside County Transportation Commission
Statement of Revenues, Expenses and Changes in Fund Net Position
Proprietary Fund
For the Year Ended June 30, 2023
Business -Type Activities
Operating revenues
Tolls, penalties, and fees
RCTC 91 Express Lanes
Enterprise Fund
15 Express Lanes
Enteprise Fund
Total
$ 73,335,918 5 39,371,149 $ 112,707,067
Operating expenses
Managementand operational services 11,153,921 9,729,858 20,883,779
Administrative overhead 1,759,600 337,800 2,097,400
Otheroperating expenses 26,681,088 191,108 26,872,196
Professional services 1,159,216 466,264 1,625,480
General and administrativeexpenses 1,592,122 896,386 2,488,508
Depreciation and amortization 6,271,563 12,652,913 18,924,476
Total operating expenses 48,617,510 24,274,329 72,891,839
Operating income 24,718,408 15,096,820 39,815,228
Nonoperating revenues (expenses)
Investmentearnings (loss) 4,391,910 1,594,076 5,985,986
Interest expense (24,612,767) (5,055,596) (29,668,363)
Capital expenses (2,498) (2,498)
Total nonoperating revenues(expenses) (20,223,355) (3,461,520) (23,684,875)
Incomebeforecontributions and transfers 4,495,053 11,635,300 16,130,353
Contributions from othergovern mental funds 7,246,775 1,263,354 8,510,129
Transfers in from othergovernmental funds - 177,116 177,116
Transfers in from otherEnterprisefunds 43 - 43
Transfers to otherEnterprisefunds (43) (43)
Transfers to othergovern mental funds (54,381,764) - (54,381,764)
Total contributions and transfers (47,134,946) 1,440,427 (45,694, 519)
Changein net position (42,639,893) 13,075,727 (29,564,166)
Net position(deficit)atbeginningofyear (290,512,183) 249,642,077 (40,870,106)
Net position(deficit)atendofyear $ (333,152,076) $ 262,717,804 $ (70,434,272)
See notes tobasic financial statements
35
79
Riverside County Transportation Commission
Statement of Cash Flows
Proprietary Fund
For the Year Ended June 30, 2023
Cash flows from operating activities
Receipts from customers and users
Payments to vendors
Payments to employees
Payments for RCTC interfund services used
Reimbursements received forleasecosts
Netcash provided by operating activities
Cash flows from noncapitalfinancing activities
Transfers ofsurplusfundsto governmental activities
Transfers from governmental activities foroperations and maintenance
Net cash used fo rno ncapital financing activities
Cash flows from capital and related financing activities
Interest paid on long-term debt
Acquisition of capital assets
Paymentforacquisition of capital asset
Net cash usedforcapital and related financing activities
Cash flows from investing activities
Interest
Net cash provided by investing activities
Netincreasein cash and cash equivalents
Cash and cash equivalents at beginning of year
Cash and cash equivalents at end of year
Reconciliation of cash and cash equivalents to statement of net position
Cash and investments
Add: fairvalueadjustment
Restricted cash and investments
Total cash and cash equivalents
See notes to basic financial statements
RCTC 91 Express
Lanes Enterprise
Fund
$ 69,746,783
(34,870,474)
(1,077,086)
(1,099,448)
32,699,775
(30,669,088)
(30,669,088)
(22,201,017)
(2,739,025)
(24,940,042)
3,075,499
3,075,499
(19,833,856)
190,032,778
15 Express Lanes
Enterprise Fund
$ 35,225,381
(3,994,037)
(556,301)
(331,600)
50,040
30,393,483
335,158
335,158
(3,966)
(3,966)
1,385,014
1,385,014
32,109,689
51,315,666
Total
$ 104,972,164
(38,864,511)
(1,633,387)
(1,431,048)
50,040
63,093,258
(30,669,088)
335,158
(30,333,930)
(22,201,017)
(2,739,025)
(3,966)
(24,944,008)
4,460,513
4,460,513
12,275,833
241,348,444
$ 170,198,922 $ 83,425,355 $ 253,624,277
$ 74,321,586
1,550,608
75,872,194
94,326,728
$ 3,998,481
79,723
4,078,204
79,347,151
78,320,067
1,630,331
79,950,398
173,673,879
$ 170,198,922 $ 83,425,355 $ 253,624,277
36
80
Riverside County Transportation Commission
Statement of Cash Flows, Continued
Proprietary Fund
For the Year Ended June 30, 2023
Reconciliation of operating incometo netcash
provided by(used fo r)operating activities
Operating income
Adjustments to reconcileoperating incometo netcash
provided by(usedfor)operating activities
Depreciation and amortization expense
(Increase) Decrease i n violations receivables
(I ncrease) Decrease i n other receivables, net
(Increase)Decreasein prepaid assets
Increase(Decrease) in pension and other-postemploymentbenefits liabilities, netofdeferred items
Increase(Decrease)in lease receivable, net of deferred items
Increase(Decrease) in accounts payable
Increase(Decrease) in dueto otherfunds
Increase(Decrease) in compensated absences liability
Increase(Decrease) in otherliabilities
Total adjustments
Net cash provided byoperating activities
Noncash capital, financing and investing activities
Amortization of bond premium
Amortization of loss on bond refunding
Accreted and compounded interest long-term debt
Compounded intereston advancefrom otherCommission funds
Net increase(decrease) in thefairvalueof investments
Contribution of capital and intangibleassetsfrom governmental activities
Transferin of accrued investmentincomefrom otherCommission funds
See notes to basic financial statements
RCTC 91 Express
Lanes Enterprise
Fund
15 Express Lanes
Enterprise Fund
Total
24,718,408 $ 15,096,820 $ 39,815,228
6,271,563
10,198
(75,839)
20,096
472,182
(1,387,424)
95,042
28,314
7,981,367
$ 32,699,775
12,652,913
2,823,119
50,400
330,306
(9,216)
(885,541)
9,221
6,758
318,703
15,296,663
18,924,476
10,198
2,747,280
70,496
802,488
(9,216)
(2,272,965)
104,263
35,072
318,703
23,278,030
$ 30,393,483 $ 63,093,258
2,537,375 $ - $ 2,537,375
(547,581) (547,581)
4,394,620 4,644,502 9,039,122
400,253 400,253
169,727 (79,723) 90,004
7,246,775 1,263,354 8,510,129
177,116 177,116
37
81
Riverside County Transportation Commission
Notes to Basic Financial Statements
June 30, 2023
Note 1. Summary of Significant Accounting Policies
Reporting entity: The Riverside County Transportation Commission (Commission) was formed in 1976 under
Division 12 (commencing with Section 130000) of the California Public Utilities Code (PUC).The Commission is
a special district governed by a 34 member board of commissioners (Board) consisting of one representative
from each city in the county, all five county supervisors, and one nonvoting state representative.
The Commission provides short-range transportation planning and programming for Riverside County
(County), which includes the administration of the Local Transportation Fund (LTF) and the State Transit
Assistance (STA) programs created under the Transportation Development Act (TDA) by the State of California
(State). The LTF is administered by the Commission on behalf of the County. The purpose of this program is
to allocate funds for public transportation needs, local streets and roads, bicycle and pedestrian facilities, and
multimodal transportation terminals. The STA program allocates funds for public transportation purposes to
those geographic areas with special public transportation needs, which cannot be met otherwise.
On November 8, 1988, the Commission was empowered by the voters of the County, under Ordinance
No. 88-1 (1989 Measure A), to collect a one-half of one percent sales tax for the purpose of improving the
transportation system of the County. Measure A was enacted, in part, pursuant to the provisions of Division
25 (commencing with Section 240000) of the California Public Utilities Code and Section 7252.22 of the
Revenue and Taxation Code. On November 12, 2002 Riverside County's voters approved a 30 -year renewal
of Measure A under Ordinance No. 02 001 (2009 Measure A). The voter action ensured the replacement of
the 1989 Measure A program when it expired in 2009 with a new 30 -year program that continues funding
transportation improvements until June 2039.
In connection with the 2009 Measure A program, the County and cities in the Western County area
implemented a Transportation Uniform Mitigation Fee (TUMF) program to fund a regional arterial system
to handle the traffic demands in the Western Riverside County (Western County) area as a result of future
development. Under the 2009 Measure A program, the Commission shall receive the first $400 million of
TUMF revenues to fund the regional arterial projects and new Community Environmental Transportation
Acceptability Process (CETAP) corridors included in the 2009 Measure A Transportation Improvement Plan.
Under the Memorandum of Understanding (MOU), the majority of net revenues are allocated in equal
amounts to the Commission for regional arterial projects and to Western Riverside Council of Governments
(WRCOG) for local arterial projects; a small percentage is allocated for public transit. In September 2008,
the Commission approved an amendment to the MOU whereby the $400 million cap was lifted and the
Commission will continue to receive its share of TUMF revenues indefinitely.
In August 2008, the State amended the Commission's authority under the PUCto include authorization to set,
levy and collecttolls, user fees, or other similar charges, payable for use of the toll lanes and other facilities on
the portion of State Highway Route 91 (SR -91) between the Orange County and Riverside County line to the
west and Interstate 15 (1-15) to the east and to issue bonds or other obligations payable from the proceeds
of such tolls and other revenues that are pledged. In March 2017, the Commission achieved substantial
completion of the SR -91 corridor improvement project (91 Project) and opened the RCTC 91 Express Lanes.
In September 2008, the State amended the Commission's authority under the State's Streets and Highways
Code (Sections 149.7 through 149.8) to include authorization to set, levy and collect tolls, user fees, or
other similar charges, payable for use of high -occupancy toll lanes and other facilities in the 1-15 corridor in
Riverside County and to issue bonds or other obligations payable from the proceeds of such tolls and other
revenues that are pledged. The Commission commenced the design -build phase of the 1-15 Express Lanes
project in 2017; in April 2021, the Commission achieved substantial completion of the 1-15 Express Lanes
project and opened the 15 Express Lanes.
38
82
Riverside County Transportation Commission
Notes to Basic Financial Statements
June 30, 2023
Note 1. Summary of Significant Accounting Policies, Continued
Accounting principles generally accepted in the United States require that the reporting entity include the
primary government, organizations for which the primary government is financially accountable, and other
organizations for which the nature and significance of their relationship with the primary government are
such that exclusion would cause the reporting entity's financial statements to be misleading or incomplete.
The basic financial statements include all funds of the Commission including those of the Service Authority
for Freeway Emergencies (SAFE), a component unit, for which the Commission is considered financially
accountable. SAFE was created under Chapter 14 (commencing with Section 2550) of Division 3 of the
California Streets and Highways Code and Sections 2421.5 and 9250.1 of the Vehicle Code. SAFE receives
monies from fees levied on registered vehicles to be used to implement and maintain an emergency
motorist aid system, as specified, on portions of the California Freeway and Expressway System in the County.
The governing body of SAFE is substantially identical to that of the Commission, and management of the
Commission has operational responsibility for SAFE. SAFE is presented as a special revenue fund. Separate
financial statements are not issued for SAFE.
During the year ended June 30, 2023, the Commission adopted Governmental Accounting Standards Board
(GASB) Statement No. 91, Conduit Debt Obligation became effective but did not have an impact to these
financial statements.
During the year ended June 30, 2023, GASB Statement No. 94, Public -Private and Public -Public Partnerships
and Availability Payment Arrangements became effective but did not have an impact to these financial
statements.
During the year ended June 30, 2023, the Commission adopted GASB Statement No. 96, Subscription -
Based Information TechnologyArrangements.
During the year ended June 30, 2023 GASB Statement No. 99, Omnibus 2022 (The requirements related
to leases, PPPs, and SBITAs are effective for fiscal years beginning after June 30, 2022, and all reporting
periods thereafter.) became effective but did not have an impact to these financial statements.
There are many other governmental agencies, including the County of Riverside, providing services within the
area served by the Commission. These other governmental agencies have independently elected governing
boards and consequently are not under the direction of the Commission. Financial information for these
agencies is not included in the accompanying financial statements.
Basis of presentation: The Commission's basic financial statements consist of government -wide financial
statements, including a statement of net position and a statement of activities, and fund financial statements
which provide a more detailed level of financial information.
Government -wide statements: The statement of net position and the statement of activities report
information on all of the activities of the Commission. The effect of interfund activity has been removed from
these statements; however, interfund services provided and used are not eliminated in consolidation. These
statements report governmental activities, which normally are supported by taxes and intergovernmental
revenues, and are reported separately from business -type activities, which rely to a significant extent on
charges and fees for services.
The statement of activities demonstrates the degree to which the program expenses of a given function are
offset by program revenues. Program expenses include direct expenses, which are clearly identifiable with
a specific function, and allocated indirect expenses. Program revenues include 1) charges to customers or
applicants who purchase, use, or directly benefit from goods, services, or privileges provided by a given
function and 2) grants and contributions that are restricted to meeting the operational or capital requirements
39
83
Riverside County Transportation Commission
Notes to Basic Financial Statements
June 30, 2023
Note 1. Summary of Significant Accounting Policies, Continued
of a particular function. Taxes and other internally dedicated resources, which are properly not included
among program revenues, are reported instead as general revenues.
Fund financial statements: The fund financial statements provide information about the Commission's
governmental and proprietary funds; the Commission has no fiduciary funds. The emphasis of fund financial
statements is on major governmental and proprietary funds, each displayed in a separate column. The
Commission has categorized the Commercial Paper, Bonds Capital Projects fund and Debt Service fund
as major funds for public interest reasons. The Commission believes that these judgmentally determined
major funds are particularly important to the financial statement users. All remaining governmental funds not
reported as major funds are aggregated and reported as nonmajor funds.
The Commission reports the following major governmental funds:
General Fund: The General Fund is the general operating fund of the Commission and accounts for
financial resources not required to be accounted for in another fund.
Measure A Western County Special Revenue Fund: This fund accounts for the revenues from sales taxes
which are restricted to expenditures for 1989 MeasureAand 2009 MeasureAWestern County programs.
Measure A Coachella Valley Special Revenue Fund: This fund accounts for the revenues from sales taxes
which are restricted to expenditures for 2009 Measure A Coachella Valley programs.
Transportation Uniform Mitigation Fee Special Revenue Fund: This fund accounts for TUMF revenues,
which are restricted to expenditures for Western County regional arterial and CETAP projects.
Local Transportation Fund: This special revenue fund accounts for the one -quarter percent of the state
sales tax collected within the County underTDAfor planning and programming, bicycle and pedestrian
facilities, and transit operations including the Commission's commuter rail operations.
State Transit Assistance Special Revenue Fund: This fund is used to account for revenues from sales
taxes on diesel fuel restricted for transit projects.
SB 132 Special Revenue Fund: This fund is used to account for program revenues allocated by the
State for the Riverside County Transportation Efficiency Corridor. The program comprises five projects
in northwest Riverside County.
Commercial Paper Capital Projects Fund: This fund records proceeds from the issuance of commercial
paper notes and the use of these proceeds for capital projects included in the 2009 Measure A.
Bonds Capital Projects Fund: This fund records proceeds from the issuance of sales tax and toll revenue
bonds and the use of these proceeds for capital projects included in the 2009 Measure A.
Debt Service Fund: This fund accounts for the resources accumulated and payments made for principal
and interest on the sales tax and toll revenue bonds.
The Commission reports the following major proprietary fund:
RCTC 91 Express Lanes Enterprise fund: This fund accounts for toll and non -toll revenues earned on
the RCTC 91 Express Lanes that extend on SR -91 from the Riverside/Orange County line to 1-15. These
revenues are restricted to pay operations and maintenance costs, repair and rehabilitation costs, debt
service, and other in accordance with the toll bond indenture.
40
84
Riverside County Transportation Commission
Notes to Basic Financial Statements
June 30, 2023
Note 1. Summary of Significant Accounting Policies, Continued
15 Express Lanes Enterprise fund: This fund accounts for toll and non -toll revenues earned on the 15
Express Lanes. The 15 -mile stretch includes two lanes in each direction of the center median along 1-15
corridor between Cajalco Road in Corona and SR -60 in Jurupa Valley. These revenues are restricted
to pay operations and maintenance costs, repair and rehabilitation costs, debt service, and other in
accordance with the toll bond indenture.
Measurement focus and basis of accounting: The government -wide financial statements and proprietary
fund financial statements are reported using the economic resources measurement focus and the accrual
basis of accounting. Revenues are recorded when earned, and expenses are recorded when a liability is
incurred, regardless of the timing of related cash flows. Toll revenues are recognized when customers utilize
the toll road facility and payment is collected. Grants and similar items are recognized as revenue as soon as
all eligibility requirements imposed by the provider have been met.
Governmental fund financial statements are reported using the current financial resources measurement
focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both
measurable and available. Revenues are considered to be available when they are collectible within the
current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the
Commission considers revenues to be available if they are collected within 180 days of the end of the current
fiscal period. Expenditures generally are recorded when a liability is incurred; however, principal and interest
expenditures on long-term debt as well as compensated absences, leases, and claims and judgments are
recorded only when payment is due.
Those revenues susceptible to accrual include sales taxes collected and held by the State at year-end on
behalf of the Commission, TUMF, intergovernmental revenues when all applicable eligibility requirements
have been met, interest revenue, and vehicle registration user fees, and charges for services.
Proprietaryfunds distinguish operating revenues and expensesfrom nonoperating items. Operating revenues
and expenses generally result from providing services in connection with a proprietary funds principal and
ongoing operations. The principal operating revenues of the Commission's proprietary fund are charges for
services. Operating expenses for the proprietary fund include the cost of services, administrative expenses,
and depreciation and amortization on capital and intangible assets. All revenues and expenses not meeting
this definition are reported as nonoperating revenues and expenses.
Violations: Violations that the Commission anticipates to collect consist of uncollected violation tolls
and penalties. Unpaid violations of the RCTC 91 Express Lanes and 15 Express Lanes in the amounts of
$65,411,641 and $29,275,372, respectively, as of June 30, 2023 are not recognized as revenue until payment
is received. Unpaid violations will remain recorded for a period of four years in accordance with the statute
of limitations, at which time, they will be deemed uncollectible.
Cash and investments: The Commission maintains cash and investments in accordance with an investment
policy adopted initially by the Board in September 1995, and most recently amended in December 2022.The
investment policy complies with, or is more restrictive than, applicable state statutes. This investment policy
requires the Commission's investment program to meet three criteria in the order of their importance: safety,
liquidity, and return on investments. Investments of bond and commercial paper proceeds as permitted by
the applicable debt documents are maintained by U.S. Bank, as trustee or custodial bank, and the earnings
for each bond and commercial paper issue are accounted for separately. Cash from other Commission
revenue sources is commingled for investment purposes, with investment earnings allocated to the different
funds based on average monthly dollar balances in the funds.
41
85
Riverside County Transportation Commission
Notes to Basic Financial Statements
June 30, 2023
Note 1. Summary of Significant Accounting Policies, Continued
The Commission's investment policy is summarized in the table below; investments held by bond trustees
are governed by the provisions of the Commission's bond indentures. Other investments permitted by the
California Government Code (Code) are permitted but only with prior Board authorization; securities that
could result in zero interest accrual if held to maturity are ineligible.
Authorized Investment Type
Maximum Effective
Maturity
Maximum
Percentage of
Portfolio
Maximum Investment in
One Issuer
Minimum Ratings
United States(U.S.)Treasury obligations
Federal agency securities
State/Municipal obligations
Mortgage and asset -backed securities
Repurchase agreements
U.S. corporate debt
Commercial paper notes
Banker's acceptances
Money market mutual funds
Riverside County Pooled Investment Fund (RCPIF)
Local Agency Investment Fund (LAIF)
Negotiable certificates of deposit
Federally insured certificates of deposit
Collateralized certificates of deposit
Time deposits
5 years
5 years
5 years
5 years
30 days
5 years
270 days
180 days
Not applicable
Not applicable
Not applicable
1 year
1 year
1 year
5 years
None
None
25%
10%
None
25%
25%
40%
20%
None
N/A
30%
20%
15%
None
None
None
10%
10%
10%
10%
10%
30%
10%
Set by RCPIF
Set by LAIF
10%
10%
10%
10%
Not applicable
Not applicable
Al /A+
A3/A-/A-
A
Al /A+
A
Not applicable
Not applicable
Not applicable
Not applicable
P-1 /A-1IF-1
Not applicable
Not applicable
Not applicable
Oversight of the RCPIF is conducted by the County Treasury Oversight Committee. All investments, except
for those related to bond reserve funds, are subject to a maximum maturity of five years unless specific
direction to exceed the limit is given by the Board. LTF moneys are legally required to be deposited in the
RCPIF.
The RCPIF is carried at fair value, or the value of each participating dollar as provided by the RCPIF and LAIF,
respectively. The fair value of the Commission's position in the RCPIF and LAIF is the same as the value of the
pool shares.The pooled funds are not subject to Level 1, 2, or 3 of the fair value hierarchy prescribed by GASB
Statement No. 72, Fair Value Measurement and Application. Investments in U.S. Treasury, federal agency,
mortgage and asset -backed, municipal, corporate, negotiable certificates of deposit, and commercial paper
securities are carried at fair value based on quoted market prices. Money market mutual funds are carried at
fair value based on each fund's share price.
Bank balances are secured by the pledging of a pool of eligible securities to collateralize the Commission's
deposits with the bank in accordance with the Code.
Cash and cash equivalents: For the purposes of the statement of cash flows, the Commission considers all
short-term investments with an initial maturity of three months or less to be cash equivalents. All deposits,
commercial paper, money market funds, certificates of deposit, and the share of RCIPF represent cash and
cash equivalents for cash flow purposes.
Accounts receivable: Accounts receivable consist primarily of Measure A and LTF sales tax revenues from
the California Department of Tax and Fee Administration on all taxable sales within the County of Riverside,
California through June 30, 2023.
42
86
Riverside County Transportation Commission
Notes to Basic Financial Statements
June 30, 2023
Note 1. Summary of Significant Accounting Policies, Continued
Interfund transactions: During the course of operations, numerous transactions occur between individual
funds involving goods provided or services rendered. There are also transfers of revenues from funds
authorized to receive the revenue to funds authorized to expend it. Outstanding interfund balances are
reported as due from/to other funds; internal financing balances are reported as advances to/from other
funds. Any residual balances outstanding between the governmental activities and business -type activities
are reported in the government wide financial statements as "internal balances".
Prepaid expenditures/expenses and other assets: Certain payments to vendors and condemnation
payments with the State, which are related primarily to the 91 Project, reflect costs applicable to future
accounting periods and are recorded as prepaid expenditures/expenses using the consumption method in
both the government -wide and fund financial statements.
Restricted investments held by trustee: Restricted investments held by trustee represent unexpended
bond proceeds, interest earnings thereon, and capitalized interest and reserve amounts for bonds. Under
the related bond resolutions and indentures, any remaining bond proceeds are restricted for the use of
future construction improvements to the respective projects, for debt service, or for reserve requirements in
accordance with applicable debt covenants.
Capital assets: Capital assets consisting of land and land improvements; construction in progress; construction
and rail easements; buildings; rail stations; rail tracks; office improvements; office furniture, equipment, and
vehicles; development in progress; toll infrastructure; right to use assets; intangible assets, including a toll
facility franchise; and transponders are reported in applicable governmental or business -type activities in
the government -wide financial statements. Capital assets are defined by the Commission as assets with an
initial, individual cost of more than $100,000 and an estimated useful life in excess of three years and are
primarily included within the function of current expenditures in the governmental fund financial statements.
Such assets are recorded at historical costs or estimated historical costs if purchased or constructed. Donated
capital assets are recorded at acquisition value at the date of donation.
Highway construction and certain purchases of right of way property, for which title vests with the California
Department of Transportation (Caltrans), are included in highway program expenditures. Infrastructure
consisting primarily of highway construction and right of way acquisition is generally not recorded as a capital
asset, because the Commission does not have title to such assets or rights of way. However, costs related to
the development of tolled express lanes are recorded as land and land improvements and construction in
progress. The costs of normal maintenance and repairs that do not add to the value of the asset or materially
extend the life of the asset are not capitalized.
Rail stations, rail tracks, temporary construction easements, buildings, office improvements, furniture and
equipment, vehicles, toll infrastructure, intangible assets, and transponders are depreciated and amortized
using the straight-line method over the following estimated useful lives:
Asset Type Useful Life
Rail stations
Rail tracks
Temporary construction easements
Buildings
Office improvements
Furniture and equipment
Vehicles
Toll facility franchise
Toll infrastructure
Transponders
10 to 30 years
30 years
1 to 3 years
10 to 20 years
7 to 10 years
3 to 5 years
5 years
50 years
5 to 10 years
5 years
43
87
Riverside County Transportation Commission
Notes to Basic Financial Statements
June 30, 2023
Note 1. Summary of Significant Accounting Policies, Continued
Project costs that have been incurred for the tolled express lanes projects, consisting of the 91 Project and
the 1-15 Express Lanes project, and are expected to remain the Commission's assets, are capitalized upon
completion as intangible assets that will be amortized over the life of the toll facility franchise with Caltrans.
These capitalizable costs have been accumulated in the capital assets as land and land improvements and
construction in progress. The costs of the tolled express lanes projects that are not capitalized are expensed
as incurred based on management's estimation which is generally based upon the allocation of Measure A
and other funding sources, including toll -supported debt. As of June 30, 2023, the estimated project costs
incurred but not capitalized related to the 91 Project is primarily right of way, or approximately $113.5 million.
All costs related to the 1-15 Express Lanes project are considered capitalizable.
The intangible right to use lease assets are initially measured at an amount equal to the initial measurement
of the related lease liability plus any lease payments made prior to the lease term, less lease incentives, and
plus ancillary charges necessary to place the lease asset into place. The right to use assets are amortized on
a straight-line basis over the life of the related lease.
Right to use subscription IT assets are recognized at the subscription commencement date and represent
the Commission's right to use the underlying IT asset for the subscription term. Right to use subscription IT
assets are measured at the initial value of the subscription liability plus any payments made to the vendor at
the commencement of the subscription term, less any subscription incentives received from the vendor at
or before the commencement of the subscription term, plus any capitalizable initial implementation costs
necessary to place the subscription asset into service. Right to use subscription IT assets are amortized over
the shorter of the subscription term or useful life of the underlying asset using the straight-line method. The
amortization period varies based on individual subscription IT arrangements.
In May 2012 the Commission entered into a toll facility agreement with Caltrans and obtained authorityto toll
the SR -91 from the Orange/Riverside County line to I-15. The Commission's 91 Project included the RCTC 91
Express Lanes, which opened on March 20, 2017. The toll facility is amortized over the remaining life of the
toll facility agreement through March 2067.
In September 2016 the Commission entered into a toll facility agreement with Caltrans and obtained authority
to toll the 1-15 from Cajalco Road in Corona to SR -60 in Jurupa Valley. The Commission's 1-15 Express Lanes
Project included the 15 Express Lanes, which opened to motorists on April 10, 2021 and commenced tolling
on April 14, 2021. The toll facility is amortized over the remaining life of the toll facility agreement through
April 2071.
Long Term Obligations: In the government -wide financial statements, long-term debt and other long-term
obligations are reported as liabilities in the applicable governmental activities. Bond premiums and discounts
are deferred and amortized over the life of the bonds using the straight-line method.
In the fund financial statements, governmental fund types recognize bond premiums and discounts, as well
as bond issuance costs, during the current period. The face amount of debt issued is reported as other
financing sources. Premiums received on debt issuances are reported as other financing sources, while
discounts on debt issuances are reported as other financing uses. Issuance costs, whether withheld from the
actual debt proceeds received, are reported as debt service expenditures.
Lease liabilities represent the Commission's obligation to make lease payments arising from the lease.
Lease liabilities are recognized at the lease commencement date based on the present value of future lease
payments expected to be made during the lease term. The present value of lease payments are discounted
based on a borrowing rate determined by the Commission.
44
88
Riverside County Transportation Commission
Notes to Basic Financial Statements
June 30, 2023
Note 1. Summary of Significant Accounting Policies, Continued
Subscription liabilities represent the Commission's obligation to make subscription payments arising from
the subscription contract. Subscription liabilities are recognized at the subscription commencement date
based on the present value of future subscription payments expected to be made during the subscription
term. The present value of subscription payments are discounted based on a borrowing rate determined by
the Commission.
Compensated absences: Vacation hours accumulated and not taken at year-end is reported as a long-term
liability in the government -wide and proprietary fund financial statements. Sick leave is recorded as an
expenditure or expense when taken by the employee. Employees with continuous five years of service have
the option of being paid for sick leave accumulated in excess of 240 hours at a rate of 50% (i.e., one hour's
pay for every two hours in excess of 240). Any sick leave in excess of 240 hours is accrued at fiscal year-end,
and a liability is reported in the government -wide and proprietary fund financial statements. Sick leave that is
due and payable at year-end is reported as an expenditure and a fund liability of the General fund.
Pensions: For purposes of measuring the net pension liability and deferred outflows/inflows of resources
related to pensions and pension expense, information about the fiduciary net position of the Commission's
California Public Employees' Retirement System (CaIPERS) plans (Plans) and additions to/deduction from
Plans' fiduciary net position have been determined on the same basis as they are reported by CaIPERS. For
this purpose, benefit payments (including refunds of employee contributions) are recognized when due and
payable in accordance with benefit terms. Investments are reported at fair value.
Post -employment Benefits Other Than Pensions: For purposes of measuring the net other post -employment
benefits (OPEB) asset, deferred outflows/inflows of resources related to the OPEB asset and OPEB expense,
information about the fiduciary net position of the Commission's OPEB plan, and additions to/deductions
from the OPEB fiduciary net position have been determined on the same basis as they are reported by
California Employers' Retiree Benefit Trust (CERBT) administered by CaIPERS. For this purpose, benefit
payments are recognized when due and payable in accordance with benefit terms. Investments are reported
at fair value, except for money markets and participating interest -earning investment contracts that have a
maturity at the time of purchase of one year or less, which is reported at cost.
Risk management: The Commission is exposed to various risks of loss related to workers' compensation;
torts; theft of, damage to, or destruction of assets; and errors or omissions. The Commission protects itself
against such losses by a balanced program of risk retention, risk transfers, and the purchase of commercial
insurance. Loss exposures retained by the Commission are treated as normal expenditures and include any
loss contingency not covered by the Commission's purchased insurance policies. Construction projects
and rail properties are protected through a combination of commercial insurance, insurance required of
Commission consultants, and a self-insurance fund established by the Southern California Regional Rail
Authority (SCRRA). The RCTC 91 Express Lanes and 15 Express Lanes Enterprise funds have purchased
commercial property insurance, including business interruption, earthquake and flood coverage related to
the RCTC 91 Express Lanes and 15 Express Lanes.
Deferred outflows of resources: In addition to assets, the statement of net position reports a separate section
for deferred outflows of resources. This separate financial statement element represents a consumption of
net assets that applies to future periods and will not be recognized as an outflow of resources, or expenditure,
until then. The Commission has the following items — loss on refunding of bonds, net differences between
projected and actual pension earnings, pension contributions subsequent to measurement date, differences
between expected and actual pension experiences, the proportionate share of pension contributions,
pension changes in Commission's proportion, changes in OPEB assumptions, differences between projected
and actual OPEB earnings, and OPEB contributions subsequent to measurement date — which qualify for
45
89
Riverside County Transportation Commission
Notes to Basic Financial Statements
June 30, 2023
Note 1. Summary of Significant Accounting Policies, Continued
reporting in this category in the applicable column for governmental and business -type activities on the
statement of net position.
Deferred inflows of resources: In addition to liabilities, the statement of net position reports a separate
section for deferred inflows of resources. This separate financial statement element represents an acquisition
of net assets that applies to future periods and will not be recognized as an inflow of resources, or revenue,
until then. The Commission has the following items CI leases, difference between projected and actual
earnings on pension plan investments, the proportionate share of pension contributions, pension changes
in Commission's proportion, changes in OPEB assumptions, differences between expected and actual OPEB
experiences, and net differences between projected and actual earnings on OPEB plan investments 0 which
qualify for reporting in this category in the applicable governmental and business -type activities on the
statement of net position. At the fund level, the Commission has deferred inflows of resources related to
interest earned but not available.
Fund equity: In the fund financial statements, the governmental funds report fund balances in various
categories based on the nature of any limitations requiring the use of the resources for specific purposes:
Nonspendable fund balances cannot be spent, because they are in nonspendable form such as prepaid
expenditures and leases or are required to be maintained intact.
Restricted fund balances are restricted for specific purposes by third parties or enabling legislation.
Committed fund balances include amounts that can be used only for specific purposes determined by
adoption of a resolution of the Board. These committed amounts cannot be used for any other purpose
unless the Commission removes or changes the specified use through the same type of formal action
taken to establish the commitment.
Assigned fund balances comprise amounts intended to be used bythe Commission for specific purposes
but are not restricted or committed. The Board delegates the authority to assign amounts to be used
for specific purposes to the Chief Financial Officer. Assignments generally only exist temporarily; an
additional action does not have to be taken for the removal of an assignment.
Unassigned fund balance is residual positive net resources of the General Fund in excess of what can
properly be classified in one of the other four categories. In all other governmental funds, it is the
negative residual fund balance of any other governmental fund that cannot be eliminated by offsetting
assigned fund balance amounts.
When both restricted and unrestricted resources are available for an incurred expenditure, it is the
Commission's policy to spend restricted resources first and then unrestricted resources, as necessary.
When unrestricted resources are available for an incurred expenditure, it is the Commission's policy to use
committed amounts first, followed by assigned amounts, and then unassigned amounts. In June 2012, the
Commission adopted a resolution to establish a policy on reporting and classifying fund balance in the
General fund.
46
90
1,098,685,466
54,324,979
Riverside County Transportation Commission
Notes to Basic Financial Statements
June 30, 2023
Note 1. Summary of Significant Accounting Policies, Continued
Net position (deficit): In the government -wide and proprietary fund financial statements, net position (deficit)
represents the difference between assets and deferred outflows of resources and liabilities and deferred
inflows and is classified into three categories:
Net investment (deficit) in capital assets consists of capital assets, net of accumulated depreciation
and amortization, reduced by the outstanding balances of any borrowings used for the acquisition,
construction, or improvement of those assets and excludes unspent debt proceeds.
Restricted —net position represents restricted assets less liabilities and deferred inflows of resources
related to those assets. Restricted assets are recorded when there are limitations imposed by creditors
(such as through debt covenants), contributions, or laws and regulations of other governments or
constraints imposed by law through constitutional provisions or through enabling legislation.
Unrestricted —(deficit) represents the amount of unrestricted resources that will need to be provided for
in future periods.
When both restricted and unrestricted resources are available for use, it is the Commission's policy to use
restricted —net position resources first and then unrestricted —net position resources, as they are needed.
Administration expenditures: The Commission's staff and resources are used in the performance of
its responsibilities relating to the activities of the Commission and its component unit. Accordingly, the
Commission allocates salaries and benefits to each applicable fund on the basis of actual hours spent by
activity, and other indirect overhead is allocated based on a systematic basis. Administrative salaries and
benefits, net of administrative cost allocations of $2,281,983 allocated to Measure A in 2023 were less than
1% of revenues and in compliance with the law.
Use of estimates: The preparation of the financial statements in conformity with accounting principles
generally accepted in the United States requires managementto make estimates and assumptions that affect
certain reported amounts and disclosures during the reporting period. As such, actual results could differ
from those estimates.
Note 2. Cash and Investments
Cash and investments at June 30, 2023 consist of the following::
Unrestricted
Cash Investments Total
Restricted
Cash Investments Total Total
Cash in bank
Petty cash
RCPIF
Operations pooled investments
Investments with fiscal agents
Total cash and investments $ 10,226,366 $1,153,010,445 $1,163,236,811 $ 849,310 $198,918,885 $ 199,768,195 $ 1,363,005,006
$ 10,225,348
1,018
849,310 $
-$
$ 10,225,348 $
1,018
1,098,685,466
54,324,979
849,310 $ 11,074,658
1,018
- 1,098,685,466
- 54,324,979
- 198,918,885 198,918,885 198,918,885
47
91
Riverside County Transportation Commission
Notes to Basic Financial Statements
June 30, 2023
Note 2. Cash and Investments, Continued
Total cash and investments are reported in the following funds:
Unrestricted cash and investments
Governmental funds $ 1,084,916,744
Enterprise fund 78,320,067
Subtotal 1,163,236,811
Restricted cash and investments
Governmental funds 26,094,316
Enterprise fund 173,673,879
Subtotal 199,768,195
Total cash and investments $ 1,363,005,006
Restricted cash and investments at June 30, 2023 represent investments held by bond trustees for project
costs and debt service and for cash held by a bank for the 15 Express Lanes toll customer deposits.
Fair Value Hierarchy: The Commission categorizes its fair value measurements within the fair value hierarchy
established by generally accepted accounting principles. The hierarchy is based on the valuation inputs
used to measure fair value of the assets. Level 1 inputs are quoted prices in an active market for identical
assets; Level 2 inputs are based on similar observable assets either directly or indirectly, which may include
inputs in markets that are not considered to be active; and Level 3 inputs are significant unobservable inputs
(the Commission does not value any of its investments using Level 3 inputs).
The following is a summary of the fair value hierarchy of the fair value of investments of the Commission as
of June 30, 2023:
Fair Value Measurements Using
Investments by fair value level:
Investments subject to fair value hierarchy:
U.S. Treasury obligations
Mortgage and asset -backed securities
Corporate notes
Money market mutual funds
U.S. agency securities
Municipal bonds
Commercial paper notes
Total investments measured at fair value
June 30, 2023
Quoted Prices in Active
Markets for Identical
Assets (Level 1)
Significant Other
Observable Inputs
(Level 2)
Investments not subject to fair value hierarchy:
RCPIF
Total investments
$ 57,542,493 $ 57,542,493 $
29,798,575
25,366,595
110,907,960 110,907,960
19,335,718
7,929,353
2,363,170
1,098,685,466
$ 1,351,929,330
29,798,575
25,366,595
19,335,718
7,929,353
2,363,170
$ 168,450,453 $ 84,793,411
Investments classified in Level 1 of the value hierarchy, valued at $168,450,453 are valued using quoted
prices in active markets.
Mortgage and asset -backed securities totaling $29,798,575, corporate notes totaling $25,366,595, U.S.
agency securities totaling $19,335,718, municipal bonds totaling $7,929,353, and commercial papertotaling
$2,363,170 in 2023, classified in Level 2 of the fair value hierarchy, are valued using matrix pricing techniques
48
92
Riverside County Transportation Commission
Notes to Basic Financial Statements
June 30, 2023
Note 2. Cash and Investments, Continued
maintained by various pricing vendors. Matrix pricing is used to value securities based on the securities'
relationship to benchmark quoted prices. Fair value is defined as the quoted market value on the last trading
day of the period. These prices are obtained from various pricing sources by the custodian bank.
As of June 30, 2023, the Commission had the following investments:
Investments
Fair Value Principal
Interest Rate
Range
Weighted
Average Maturity
Maturity Range (Year)
Unrestricted:
RCPIF
Operations pooled investments:
Corporate notes
Money market mutual funds
Mortgage and asset -backed securities
Municipal bonds
U.S. agency securities
U.S.Treasury obligations
Total unrestricted investments
Restricted:
Commercial paper notes
Corporate notes
Money market mutual funds
Mortgage and asset -backed securities
Municipal bonds
U.S. agency securities
U.S.Treasury obligations
Total restricted investments
$ 1,098,685,466
12,514,597
437,122
740,095
3,421,297
6,563,176
30,648,692
$ 1,121,656,807 0.210% - 6.000% 6/30/23-6/30/28 1.300
12,844,593
437,126
458,466
3,549,775
6,711,556
31,478,556
0.426%- 6.148%
4.934%
2.912% - 5.446%
0.479% - 4.434%
0.479% - 5.631 %
0.128% - 4.649%
8/11/23 - 3/15/28
N/A
7/25/23 -1 /25/26
8/1/23 - 5/1/26
7/8/24 - 5/1/26
1/15/24 - 7/31/27
2.287
20 days or 0.055
2.077
1.512
1.814
2.180
$ 1,153,010,445 $ 1,177 136 879
Unrestricted investment portfolio weighted average 1.604
2,363,170 2,350,442
12,851,998 13,022, 768
110,470,838 110,470, 838
29,058,480 30,301,341
4,508,056 4,522,326
12, 772, 542 12,926,791
26,893,801 27,185,849
5.477% - 5.653%
0.350 %- 6.226%
4.556%- 4.706%
0.983% - 6.020%
0.654% - 5.419%
0.305% - 5.757%
0.126%- 5.379%
7/3/23 -10/16/23
10/26/23 -10/15/27
N/A
7/25/23 - 9/16/55
7/1/23 -10/1 /48
7/11/23 -11 /16/28
7/18/23 - 8/15/30
0.091
1.453
20 days or 0.055
6.163
5.615
1.371
1.006
$198,918,885 $ 200,780,355
Restricted investment portfolio weighted average 2.251
The weighted average maturity is calculated using the investment's effective duration weighted by the
investment's fair value.
As of June 30, 2023, mortgage and asset -backed securities totaled $29,798,575. The underlying assets are
consumer receivables that include credit cards, auto/equipment, and home loans. The securities have a
fixed interest rate and are rated AAA/Aaa by at least two of the three nationally recognized statistical rating
organizations.
Interest rate risk: While the Commission does not have a formal policy related to the interest rate risk of
investments, the Commission's investment policy follows the Code as it relates to limits on investment
maturities as a means of managing exposure to fair value losses arising from increasing interest rates. In
accordance with the Commission's investment policy, restricted investments are invested in accordance with
the maturity provisions of the specific bond indenture, which may extend beyond five years.
Custodial credit risk: Custodial credit risk for deposits is the risk that, in the event of the failure of a depository
financial institution, a government will not be able to recover its deposits or will not be able to recover
collateral securities that are in the possession of an outside party. The custodial credit risk for investments is
the risk that, in the event of the failure of the counterparty (e.g., broker -dealer) to a transaction, a government
will not be able to recover the value of its investment or collateral securities that are in the possession of
another party. The Commission's investment policy requires that a third -party bank trust department hold all
securities owned by the Commission. All trades are settled on a delivery versus payment basis through the
Commission's safekeeping agent.
49
93
Riverside County Transportation Commission
Notes to Basic Financial Statements
June 30, 2023
Note 2. Cash and Investments, Continued
The Commission has deposits with a bank balance of $5,750,327 with financial institutions; bank balances
over $5,000,000 are swept daily into a money market fund. Of the bank balance, up to $250,000 is
federally insured under the Federal Depository Insurance Corporation with balances in excess of $250,000
collateralized in accordance with the Code; however, the collateralized securities are not held in the name of
the Commission.
Credit risk: The Commission's investment policy as well as the specific bond indentures set minimum
acceptable credit ratings for investments from any of the three nationally recognized statistical rating
organizations. The following is a summary of the credit quality distribution and concentration of credit risk by
investment type as a percentage of each category's fair value at June 30, 2023; securities denoted as NR are
not rated by one of the nationally recognized statistical rating organizations.
Investments Moody's S&P % of Portfolio
RCPIF
Commercial paper notes
Various
Various
Corporate
Notes
Notes
Notes
Notes
Notes
Notes
Notes
Notes
Notes
Notes
Notes
Notes
Notes
Notes
Notes
Notes
Notes
Notes
Notes
Notes
Notes
Notes
Notes
Notes
Money market mutual funds
Funds AAA AM 8.20%
Mortgage and asset -backed securities
Securities AA+ NR 0.01%
Securities AAA M+ 0.02%
Securities AAA AA+u 0.05%
Securities MA AM 0.02%
Securities AAA NR 0.05%
Securities NR M+ 1.98%
Securities NR AM 0.07%
Aaa-bf
P-1
P-2
Al
Al
Al
Al
Al
Al
A2
A2
A2
A2
A3
A3
Aa2
Aa2
M3
M3
MA
AAA
MA
BAA1
NR
NR
NR
NR
NR
NR
A-2
A
A-
A+
AA
AA -
BBB+
A
A-
A+
BBB+
A
A-
AA
AA-
A+
AA -
AA+
AAA
NR
BBB+
AAA
P-1
A-1+
A
81.27%
0.02%
0.15%
0.16%
0.25%
0.10%
0.02%
0.00%
0.10%
0.09%
0.10%
0.11%
0.06%
0.12%
0.04%
0.06%
0.03%
0.02%
0.06%
0.05%
0.08%
0.12%
0.01%
0.24%
0.00%
0.01%
0.04%
50
94
Riverside County Transportation Commission
Notes to Basic Financial Statements
June 30, 2023
Note 2. Cash and Investments, Continued
Investments Moody's S&P %of Portfolio
Municipal bonds
California State University
City of Corona
County of Riverside
County of San Diego Regional Airport Authority
County of Santa Clara
Florida Housing Corporation
Forsyth County, Georgia School District
Golden State Tobacco Securitization Corporation
Los Altos California School DistrictTaxable GO
Los Angeles Municipal Improvement Corporation
Metropolitan Water District
Port Authority New York and New Jersey
San Bernardino Community College District
Solano Community College District
State of Connecticut
State of Connecticut
State of Massachusetts
State of New York Mortgage Agency
State of New York State Dormitory Authority
State of New York Thruway
State of Texas
State of Washington Port
State of Wisconsin
State of Wisconsin Housing Economic Development Authority
University of Texas
University of Washington
U.S. agency notes
Notes AAA M+ 1.33%
Notes AAA NR 0.08%
Notes NR A-1+ 0.02%
U.S. Treasuries
Treasury NR NR 4.26%
Total 100.00%
Aa2
NR
NR
A2
NR
AM
AM
AA3
NR
NR
NR
M3
AA1
Aa2
AA3
AA3
AA1
VMIG1
NR
Al
UMIG1
Al
Aa2
VMIG1
VMIG1
AM
AA -
AA+
AA
NR
MA
NR
AAA
A+
AA+
AA-
A -1
M -
AA
AA
AA-
AA -
NR
NR
AA+
A
A-1+
M -
NR
A-1
A-1+
AA+
0.01%
0.01%
0.02%
0.03%
0.02%
0.04%
0.04%
0.02%
0.03%
0.02%
0.02%
0.05%
0.01%
0.02%
0.02%
0.01%
0.03%
0.01%
0.03%
0.01%
0.01%
0.02%
0.02%
0.06%
0.01%
0.02%
Concentration of credit risk: The Commission's investment policy places a limit of 10% on the amount of
investment holdings with any one non-U.S. Government or non-federal agency issuer. As of June 30, 2023,
the Commission did not have investments in any one issuer that represent more than 5% of the Commission's
total investments.
Note 3. Advances
The Commission approved interest -bearing advances, which may be funded by debt proceeds, to the
Coachella Valley Association of Governments (CVAG) in the amount of $43,300,000. CVAG pledged its share
of 2009 Measure A highway and regional road revenue allocations in accordance with repayment terms
specified in each agreement for actual advances. Repayment amounts are withheld from revenue allocations
on a monthly basis. The final maturities of the CVAG advances are due on or before September 1, 2029.
Interest rates range from .910% to 7.307%, excluding the portion of cash subsidy payments (as discussed in
Note 6) that may be received by CVAG to reduce its repayment obligations.
The outstanding interest -bearing advances, including capitalized interest of $471,720, as of June 30, 2023
were $15,469,941.
51
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Riverside County Transportation Commission
Notes to Basic Financial Statements
June 30, 2023
Note 4. Lease Receivable
For the year ended June 30, 2023, the financial statements include GASB Statement No. 87, Leases. The
primary objective of this statement is to enhance the relevance and consistency of information about
governments' leasing activities. This statement establishes a single model for lease accounting based on the
principle that leases are financings of the right to use and an underlying asset. Under this statement, a lessee
is required to recognize a lease liability and an intangible right to use lease asset, and a lessor is required to
recognize a lease receivable and a deferred inflow of resources.
On 6/23/2015, the Commission entered into a 60 -month lease as lessor for the use of 6001 Pedley Road,
Jurupa Valley, Ca. An initial lease receivable was recorded in the amount of $391,784. As of 6/30/2023, the
value of the lease receivable is $353,963. The lessee is required to make monthly fixed payments of $2,251.
The lease has an interest rate of 2.2610%. The value of the deferred inflow of resources as of 6/30/2023 was
$336,434, and the Commission recognized lease revenue of $28,160 during the fiscal year. The lessee has
three extension option(s), each for 60 months.
On 10/10/2016, the Commission entered into a 240 -month lease as lessorforthe use of real property adjacent
to the SR -91. An initial lease receivable was recorded in the amount of $306,635. As of 6/30/2023, the value
of the lease receivable is $271,629. The lessee is required to make monthly fixed payments of $2,000. The
lease has an interest rate of 2.3460%. The value of the deferred inflow of resources as of 6/30/2023 was
$266,200, and the Commission recognized lease revenue of $20,218 during the fiscal year. The lessee has
two extension option(s), each for 60 months.
On 10/31/2016, the Commission entered into a 60 -month lease as lessor for the use of 2550 Cajalco Road,
Corona, Ca. An initial lease receivable in the amount of $437,708. As of 6/30/2023, the value of the lease
receivable is $400,447. The lessee is required to make monthly fixed payments of $2,251. The lease has an
interest rate of 2.4320%. The value of the deferred inflow of resources as of 6/30/2023 was $380,260, and
the Commission recognized lease revenue of $29,209 during the fiscal year. The lessee has three extension
option(s), each for 60 months.
On 10/31/2017, the Commission entered into a 60 -month lease as lessor for the use of the San Jacinto
Branch Line right of way. An initial lease receivable was recorded in the amount of $3,925. As of 6/30/2023,
the value of the lease receivable is $0. The lessee is required to make annual fixed payments of $3,933. The
lease has an interest rate of 0.6240%. The value of the deferred inflow of resources as of 6/30/2023 was $0,
and the Commission recognized lease revenue of $785 during the fiscal year.
On 8/3/2015, the Commission entered into a 120 -month lease as lessor for the use of 202 North State Street,
Hemet, Ca. An initial lease receivable was recorded in the amount of $10,083. As of 6/30/2023, the value of
the lease receivable is $5,047. The lessee is required to make annual fixed payments of $2,568. The lease has
an interest rate of 1.1690%. The value of the deferred inflow of resources as of 6/30/2023 was $5,151, and
the Commission recognized lease revenue of $2,466 during the fiscal year.
On 12/20/2021, the Commission entered into a 419 -month lease as lessor for the use of real property
adjacent to the SR-60/SR-91/I-215 Interchange. An initial lease receivable was recorded in the amount of
$1,106,235. As of 6/30/2023, the value of the lease receivable is $1,073,766. The lessee is required to make
monthly fixed payments of $4,167. The lease has an interest rate of 2.8600%. The value of the deferred inflow
of resources as of 6/30/2023 was $1,057,743, and the Commission recognized lease revenue of $31,682
during the fiscal year. The lessee has one extension option for 168 months
On 7/13/2015, the Commission entered into a 240 -month lease as lessor for real property adjacent to 1-215,
north of Orange Avenue, Perris, Ca. An initial lease receivable was recorded in the amount of $242,894. As
52
96
Riverside County Transportation Commission
Notes to Basic Financial Statements
June 30, 2023
Note 4. Lease Receivable, Continued
of 6/30/2023, the value of the lease receivable is $216,850. The lessee is required to make monthly fixed
payments of $1,500. The lease has an interest rate of 2.2610%. The value of the deferred inflow of resources
as of 6/30/2022 was $208,744, and the Commission recognized lease revenue of $17,145 during the fiscal
year.
In accordance with the standard, the principal and interest expected to maturity for governmental activities
is as follows:
Year ending June 30 Principal Interest Total
2024
2025
2026
2027
2028
2029-2033
2034-2038
2039-2043
2044-2048
2049-2053
2054-2058
Total lease receivable
$
93,917
97,650
101,788
106,665
111,207
630,247
467,699
159,010
183,423
211,585
158,511
$
58,774 $
56,475
54,056
51,519
48,872
200,630
124,080
91,025
66,612
38,450
7,879
$ 2,321,702 $ 798,372
152,691
154,125
155,844
158,184
160,079
830,877
591,779
250,035
250,035
250,035
166,390
3,120,074
On November 1, 2019, the 15 Express Lanes fund entered a 120 -month lease for the use of 301 Corporate
Terrace Circle, Corona, Ca with the Orange County Transportation Authority. An initial lease receivable was
recorded in the amount of $379,833. As of June 30, 2023, the value of the lease receivable is $291,175. The
lessee is required to make quarterly fixed payments of $12,171. The lease has an interest rate of 1.7670%.
The value of the deferred inflow of resources as of June 30, 2023 was $281,812 and the Fund recognized
lease revenue of $49,011.
In accordance with the standard, the principal and interest expected to maturity for business -type activities
is as follows:
Year ending June 30 Principal Interest Total
2024
2025
2026
2027
2028
2029-2032
Total lease receivable
$
45,948
47,975
50,038
51,989
53,669
41,556
$
4,843 $
4,018
3,157
2,259
1,330
368
50,791
51,993
53,195
54,248
54,999
41,925
$ 291,175 $ 15,975 $ 307,151
53
97
Riverside County Transportation Commission
Notes to Basic Financial Statements
June 30, 2023
Note 5. Capital Assets
Capital assets activity for the year ended June 30, 2023 was as follows:
Governmental activities
Balance
June 30, 2022 Additions
Deletions
Balance
Transfers June 30, 2023
Capital assets not being depreciated:
Land and land improvements
Construction in progress
Rail operating easements
Construction easements
Development in progress
Total capital assets not being depreciated
Capital assets being depredated:
Rail stations
Rail tracks
Construction easements
Office improvements
Office furniture, equipment and vehicles
Total capital assets being depreciated
Less accumulated depreciation for:
Rail stations
Rail tracks
Construction easements
Office improvements
Office furniture, equipment and vehicles
Total accumulated depreciation
Total capital assets being depreciated, net
Intangible right to use lease assets:
Land
Building
Equipment
Total intangible right to use lease assets
Less accumulated amortization for:
Land
Building
Equipment
Total accumulated amortization
Total intangible right to use lease assets, net
Total intangible right to use subscription
IT assets
Less total accumulated amortization
Total intangible right to use subscription
IT assets, net
Governmental activities capital assets, net
$ 170,015,793
186,511,029
63,846,199
4,202,495
832,094
425,407,610
210,564,283
154,791,511
1,921,470
536,982
2,008,581
369,822,827
$ 16,264,051 $
71,979,056
(87,575,629)
(30,910,261)
(1,180,696)
(288,620)
(1,956,356)
(121,911,562)
247,911,265
25,205
3,856,996
94,026
3,976,227
(8,402)
(610,338)
(30,116)
(648,856)
3,327,371
1,125,117
1,125,117
333,313
88,576,420
868,337
659,724
1,528,061
(7,185,300)
(5,179,704)
(372,422)
(64,406)
(158,465)
(12,960,297)
(11,432,236)
(8,402)
(610,337)
(30,115)
(648,854)
(648,854)
(222,992)
(222,992)
- $ (7,246,775) $ 179,033,069
(294,236) (1,263,354) 256,932,495
63,846,199
4,202,495
(489,803) - 675,604
(784,039) (8,510,129) 504,689,862
211,432,620
154,791,511
1,921,470
536,982
- 2,668,305
371,350,888
(94,760,929)
(36,089,965)
(1,553,118)
(353,026)
- (2,114,821)
- (134,871,859)
- 236,479,029
25,205
3,856,996
94,026
3,976,227
(16,804)
(1,220,675)
(60,231)
(1,297,710)
2,678,517
- 1,125,117
(222,992)
902,125
$ 677,771,363 $ 76,272,338 $ (784,039) $ (8,510,129) $ 744,749,533
54
98
Riverside County Transportation Commission
Notes to Basic Financial Statements
June 30, 2023
Note 5. Capital Assets, Continued
Business -type activities
Balance
June 30, 2022
Balance
Additions Deletions Transfers June 30, 2023
Capital assets not being depreciated:
Land and land improvements
Construction easements
Construction in progress
Total capital assets not being depreciated
Capital assets being depreciated and amortized:
Toll infrastructure
Transponders
Buildings
Equipment, furniture, and fixtures
Toll facility franchise
Total capital assets being depreciated and amortized
Less accumulated depreciation and amortization for:
Toll infrastructure
Transponders
Buildings
Equipment, furniture, and fixtures
Toll facility franchise
Total accumulated depreciation and amortization
Total capital assets being depreciated and amortized, net
Business -type activities capital assets, net $
11,990,286 $
259,657 -
4,614,768 1,614,352
16,864,711 1,614,352
54,213,315
453,818
7,615,825
181,010
602,925,531
665,389,499
1,124,674
7,932
860,110
1,992,716
(31,361,869) (5,884,284)
(443,930) (9,888)
(1,588,468) (859,579)
(90,415) (42,427)
(34,687,499) (12,079,287)
(68,172,181) (18,875,465)
597,217,318 (16,882,749)
- $ 7,246,775 $ 19,237,061
259,657
- 6,229,120
7,246,775 25,725,838
(860,110) - 54,477,879
- 453,818
- 7,615,825
- 188,942
- 1,263,354 605,048,995
(860,110) 1,263,354 667,785,459
- (37,246,153)
- (453,818)
- (2,448,047)
(132,842)
(46,766,786)
- (87,047,646)
(860,110) 1,263,354 580,737,813
614,082,029 $ (15,268,397) $ (860,110) $ 8,510,129 $ 606,463,651
On May 14, 2012, the Commission entered into a toll facilities agreement with Caltrans providing the
Commission with authorization to toll the SR -91 from Orange/Riverside County line to 1-15 for 50 years
commencing as of the first day on which the RCTC 91 Express Lanes open for public use and toll operations.
On September 29, 2016, the Commission entered into a toll facilities agreement with Caltrans providing
the Commission with authorization to toll the 1-15 from Cajalco Road to SR -60 for 50 years commencing as
of the first day on which the 15 Express Lanes open for public use and toll operations. The agreements also
set forth the Commission's rights to Caltrans' right of way and Caltrans' oversight role in the operations and
maintenance of the RCTC 91 Express Lanes and 15 Express Lanes.
Depreciation and amortization expense was charged to functions/programs of the Commission's
governmental and business -type activities during the year ended June 30, 2023 as follows:
Governmental activities:
General government
Commuter assistance
Commuter rail
Highway
Planning and programming
Total depreciation expense -governmental activities
$ 880,994
8,402
12,373,654
389,188
179,905
$ 13,832,143
Business -type activities:
RCTC 91 Express Lanes
Toll facility franchise
15 Express Lanes
Toll facility franchise
Total depreciation and amortization expense- business -type activities
$ 1,200,539
5,022,013
5,595,639
7,057,274
$ 18,875,465
55
99
Riverside County Transportation Commission
Notes to Basic Financial Statements
June 30, 2023
Note 5. Capital Assets, Continued
The Commission has recorded intangible right to use assets. The assets are a right to use leased land,
buildings, and equipment, including subscription IT. The related lease and subscription IT is discussed in the
long-term obligations section. The right to use lease and subscription IT assets are amortized on a straight-
line basis over the terms of the related lease agreement.
Note 6. Interfund Transactions
Due from/to other funds: The total due from other funds and due to other funds of $46,225,348. The
composition of balances related to due from other funds and due to other funds at June 30, 2023 is as
follows:
Receivable Fund
Payable Fund
Amount Explanation
General fund
Nonmajor Governmental funds
$
184,930 Fringe benefits allocation
General fund
Nonmajor Governmental funds
13 Project costs allocations
General fund
Nonmajor Governmental funds
454,200 Administrative cost allocation
General fund
Transportation Uniform Mitigation Fee Special
Revenue fund
98,500 Administrative cost allocation
General fund
Measure A Western County Special Revenue fund
1,201,700 Administrative cost allocation
General fund
Measure A Western County Special Revenue fund
10 Project costs allocations
General fund Measure A Coachella Valley Special Revenue fund
107,100 Administrative cost allocation
General fund RCTC 91 Express Lanes Enterprise fund
459,400 Administrative cost allocation
General fund 15 Express Lanes Enterprise fund
78,200 Administrative cost allocation
General fund Local Transportation Fund
616,900 Administrative cost allocation
General fund
State Transit Assistance fund
433,454 Rail operation costs allocations
General fund
State Transit Assistance fund
35,700 Administrative cost allocation
General fund
Transportation Uniform Mitigation Fee Special
Revenue fund
Measure A Western County Special Revenue fund
9,469 Fringe benefits allocation
General fund
153,677 Fringe benefits allocation
General fund
Measure A Coachella Valley Special Revenue fund
57 Fringe benefits allocation
General fund
SB 132 fund
16,261 Fringe benefits allocation
63,342 Fringe benefits allocation
General fund
RCTC 91 Express Lanes Enterprise fund
General fund
15 Express Lanes Enterprise fund
32,455 Fringe benefits allocation
General fund
SB 132 fund
17,130,047 Cash deficit
Measure A Western County Special
Revenue fund
Measure A Western County Special
Revenue fund
Measure AWestern County Special
Revenue fund
Transportation Uniform Mitigation Fee Special
Revenue fund
General fund
RCTC 91 Express Lanes Enterprise fund
452,541 Highway project costs allocations
7,872 Highway project costs allocations
432,608 Toll project costs allocations
Measure A Coachella Valley Special
Revenue fund
Transportation Uniform Mitigation Fee Special
Revenue fund
Debt Service fund
140,418 Advance loan payment adjustment
Measure A Western County Special Revenue fund
38,955 Regional arterial project costs
allocations
SB 132 Special Revenue fund
RCTC 91 Express Lanes Enterprise fund
23,292,170 Toll project costs allocations
Commercial Paper Capital Projects fund
Measure A Coachella Valley Special Revenue fund
434,145 Advance loan payment adjustment
Bonds Capital Projects fund
Measure A Coachella Valley Special Revenue fund
67,894 Advance loan payment adjustment
Nonmajor Governmental funds
State Transit Assistance fund
283,330 Rail project costs allocations
Total due from/to other funds $ 46,225,348
56
100
Riverside County Transportation Commission
Notes to Basic Financial Statements
June 30, 2023
Note 6. Interfund Transactions, Continued
Advances to/from other funds: The Measure A Western County Special Revenue fund advanced $9,000,000
to the Bonds Capital Projects fund to establish an $18,000,000 Transportation Infrastructure Finance and
Innovation Act (TIFIA) debt service reserve for the 1-15 Express Lanes project as required no later than June
30, 2024. Upon opening of the 15 Express Lanes in April 2021, the TIFIA debt service reserve funded to date
and the related advance due to the Measure A Western County Special Revenue fund recorded in the Bonds
Capital Projects fund were transferred to the 15 Express Lanes Enterprise fund. Capitalized interest on the
advance as of June 30, 2023 was $1,402,677. Repayment of this initial Commission advance is subject to
satisfying certain conditions under the related indenture, including the occurrence of the second anniversary
of the TIFIA debt service payment commencement date. Additionally, the Measure AWestern County Special
Revenue fund has advanced $2,727,273 to the Bonds Capital Projects fund in the event that the 15 Express
Lanes does not have sufficient funds to meet the annual TIFIA debt service reserve.
Moreno Valley -March Field
57
101
Riverside County Transportation Commission
Notes to Basic Financial Statements
June 30, 2023
Note 6. Interfund Transactions, Continued
Interfund transfers: During 2023, interfund transfers were as follows:
Transfers Out Transfers In
Amount
Explanation
General fund
Measure A Western County
Special Revenue fund
$
7,873 Highway project costs allocations
Measure A Western County Special Revenue fund Transportation Uniform
Mitigation Fee Special Revenue
fund
70,362 Highway project costs allocations
Measure A Western County Special Revenue fund Debt Service fund
66,494,789 Debt service funding related to highway
projects for Western County and to advance
agreements for Western County jurisdictions
Measure A Western County Special Revenue fund General fund
752,084 Rail operation costs allocations
Measure A Western County Special Revenue fund 15 Express Lanes Enterprise fund
176,135 Accumulated interest earned on reserve fund
Transportation Uniform Mitigation Fee
Special Revenue fund
Measure A Western County
Special Revenue fund
3,974,572 Highway project costs allocations
Local Transportation Fund
General fund
27,740,200 Administration, planning and programming,
commuter rail operating and station
maintenance, and grade separation costs
allocations
State Transit Assistance fund
Nonmajor Governmental funds
283,330 Coachella Valley commuter rail costs allocations
State Transit Assistance fund
General fund
3,433,454 Rail operation costs allocations
Commercial Paper fund
Debt Service fund
2,622,091 Debt service funding related to highway
projects for Western County
Bonds Capital Projects fund
Measure A Western County
Special Revenue fund
7,821,399 Highway project costs allocations
Bonds Capital Projects fund
15 Express Lanes Enterprise fund
981 Accumulated interest earned on TIFIA debt
service reserve
Bonds Capital Projects fund
Debt Service fund
410,055 Debt service funding related to highway
projects for Western County
Debt Service fund
Measure A Western County
Special Revenue fund
2,812,132 Cash subsidies available after debt service
payment
Debt Service fund
Measure A Coachella Valley
Special Revenue fund
Measure A Western County
Special Revenue fund
Nonmajor Governmental funds
140,418 Share of cash subsidy related to CVAG advance
agreement
Nonmajor Governmental funds
Nonmajor Governmental funds
RCTC 91 Express Lanes Enterprise fund
Measure A Western County
Special Revenue fund
55,000 Commuter assistance costs allocations
2,800,000 Call box program augmentation of freeway
service patrol operations
432,608 Surplus funds used for the 91 Corridor
Operations project
RCTC 91 Express Lanes Enterprise fund SB 132 Special Revenue fund
53,949,156 Surplus funds used for the 15/91 Express Lanes
Connector project
Total transfers $ 173,976,639
58
102
Riverside County Transportation Commission
Notes to Basic Financial Statements
June 30, 2023
Note 6. Interfund Transactions, Continued
In connection with the substantial completion of the 15 Express Lanes project in April 2021 and the
commencement of toll operations on the 15 Express Lanes, the Commission contributed $1,263,354 of
capital and intangible costs from the governmental activities to the 15 Express Lanes and in connection with
the 91 Express Lanes, the Commission contributed $7,246,775 of land from the governmental activities to
the 91 Express Lanes.
Note 7. Long-term Obligations
The following is a summary of the changes in long-term obligations for the year ended June 30, 2023:
Governmental activities
Balance
June 30, 2022
Additions /
Accretion
Balance Due Within
Reductions June 30, 2023 One Year
Sales tax revenue bonds:
2010 Bonds
2013 Bonds
2016 Refunding Bonds
2017 Bonds, series A
2017 Refunding Bonds, series B
2018 Refunding Bonds
Total bonds payable
Sales tax revenue bonds premium
Total bonds payable, net
Lease liability
Subscription IT liability
Compensated absences liability
Total long-term obligations
$ 112,370,000 $
14,695,000
47,245,000
135,980,000
392,730,000
44,300,000
- $ - $ 112,370,000 $
- (14,695,000)
- (6,005,000)
- (5,280,000)
41,240,000
130,700,000
392,730,000
5,425,000) 38,875,000
747,320,000 - (31,405,000) 715,915,000
83,418,739
830,738,739
3,398,016
1,125,117
1,176,633
$ 836,438,505 $
6,305,000
5,540,000
15,045,000
5,745,000
32,635,000
- (10,458,493) 72 960,246 8,758,189
(41,863,493) 788,875,246 41,393,189
- (599,606) 2,798,410
- (210,491) 914,626
851,765 (725,737) 1,302,661
851,765 $ (43,399,327) $ 793,890,943
617,681
210,002
792,870
$ 43,013,742
Business -type activities
Balance
June 30, 2022
Additions /
Accretion
Balance Due Within
Reductions June 30, 2023 One Year
Toll revenue bonds:
2013 Bonds, Series B
2021 Bonds, Series A, B, C
Toll revenue bonds premium
Total bonds payable, net
TIFIA loan
Compensated absences liability
Total long-term obligations
$ 63,606,952 $ 4,394,620 $
615,059,000
54,368,512
733,034,464
- $ 68,001,572 $
- 615,059,000
(2,537,375) 51,831,137 2,537,375
4,394,620 (2,537,375) 734,891,709 2,537,375
162,385,853 4,644,501 - 167,030,355 -
136,867 237,035 (201,963) 171,939 104,651
$ 895,557,184 $ 9,276,156 $ (2,739,338) $ 902,094,003 $ 2,642,026
The Commission has pledged a portion of future sales tax revenues through maturities of the bonds to
repay $715,915,000 in outstanding sales tax revenue bonds payable issued in November 2010 (2010
Bonds), September 2016 (2016 Refunding Bonds), July 2017 (2017A Sales Tax Bonds), December 2017
(2017B Refunding Bonds), and March 2018 (2018 Refunding Bonds) outstanding at June 30, 2023 plus
related interest. The bonds are payable solely from the 2009 Measure A sales tax revenues on a senior and
subordinate lien basis, respectively. Annual principal and interest payments on the bonds, are expected to
require 24% of 2009 Measure A revenues. For the current year, interest paid on the bonds was $38,150,288.
Cash subsidies of $2,812,132 related to the bonds were received from the U.S. Treasury during the current
year and were recorded as intergovernmental revenues.
59
103
Riverside County Transportation Commission
Notes to Basic Financial Statements
June 30, 2023
Note 7. Long-term Obligations, Continued
In July 2010, the Commission authorized the issuance and sale of not to exceed $900 million of toll revenue
bonds related to the 91 Project. In March 2020, the Commission authorized the issuance and sale of not
to exceed $725 million of toll revenue refunding bonds related to the RCTC 91 Express Lanes. In October
2021, the Commission authorized the issuance of toll revenue refunding bonds (2021 Toll Refunding Bonds)
consisting of $88,735,000 senior lien federally taxable bonds, $450,629,000 senior lien tax-exempt bonds,
and $75,695,000 second lien tax-exempt bonds. The proceeds of the 2021 Toll Refunding Bonds were used
to refund a portion of the RCTC 91 Express Lanes 2013 Toll Revenue CIBs, pay the purchase price of the
2013 Toll Revenue CIBs accepted tender for cash, refund and prepay the TIFIA loan, fund capitalized interest,
make deposits to required reserves, and pay costs of issuance. Certain senior lien tax-exempt bonds issued
were exchanged for certain 2013 Toll Revenue CIBs accepted for exchange. Additionally, the Commission
deposited available funds with an escrow agent to defease approximately $28,919,000 in accreted value
of the 2013 Toll Revenue CABs maturing in the years 2022 through 2025 and 2027 through 2029. Cost of
issuance of $3.8 million was expended in connection with the issuance of the 2021 Toll Refunding Bonds.
Loss on refunding of $6.7 million was recognized in connection with the issuance of the 2021 Toll Refunding
Bonds.
The Commission executed aTIFIA loan agreement for up to $152,214,260 in July 2017 as a seniortoll revenue
bond on the trust estate, which consists primarily of toll revenues and account revenues less operating and
maintenance expenses of the 15 Express Lanes.The 15 Express Lanes opened to motorists on April 10, 2021,
and tolling commenced on April 14, 2021. The amount outstanding under the TIFIA loan at June 30, 2023 is
$152,214,260, and compounded interest of $14,816,095.
Sales tax revenue bonds payable: Under the provisions of the 2009 Measure A, as amended by Measure
K approved by the voters in November 2010, the Commission has the authority to issue bonds subject to
a bond debt limitation of $975,000,000. The following is a summary of bonds issued and secured by 2009
Measure A revenues that are outstanding at June 30, 2023:
2010 Sales Tax Revenue Bonds (Limited Tax Bonds), Series B (Taxable Build America Bonds): Outstanding
In November 2010, the Commission issued sales tax revenue bonds consisting of the
$37,630,000 Series A (2010A Bonds) and $112,370,000 Series B (2010B Bonds), for a total
issuance of $150,000,000 (collectively, the 2010 Bonds). For the Series B Build America
Bonds (BABs), $44,800,000 was designated as recovery zone economic development
bonds (RZEDBs). A portion of the 2010 Bonds was used to retire $103,284,000 of the
outstanding commercial paper notes with the remaining proceeds used to fund 2009
Measure A Western County and Coachella Valley capital projects and pay costs of issuance
for the 2010 Bonds. In December 2017, the 2010A Bonds were refunded. The remaining
2010B Bonds mature in annual installments ranging from $530,000 to $17,980,000
on various dates from June 1, 2032 to June 1, 2039 at an interest rate of 6.807%. The
Commission expects, but is not guaranteed, to receive a cash subsidy from the U.S. Treasury
equal to 35% of the interest payable on the BABs or 45% of the interest payable on the
2010B Bonds additionally designated as RZEDBs.
$ 112,370,000
During 2023 the cash subsidy related to the 2010 Bonds that was received from the U.S. Treasury was
approximately $2,812,132, or $169,968 less than the amount anticipated. The subsidy reduction resulted
from federal sequestration cuts of 5.7% for federal fiscal year ending September 30, 2023. The federal
sequestration cuts may continue for an unknown duration.
60
104
Riverside County Transportation Commission
Notes to Basic Financial Statements
June 30, 2023
Note 7. Long-term Obligations, Continued
In accordance with the bond maturity schedule, and assuming no subsidy reduction, the approximate annual
debt service requirements to maturity for the 2010B Bonds payable throughout the term of the bonds are
as follows:
Year Ending June 30 Principal Interest Total Subsidy Total, net
2024
2025
2026
2027
2028
2029-2033
2034-2038
2039
$
$ 7,649,000
7,649,000
7,649,000
7,649,000
7,649,000
14,540,000 38,209,100
79,850,000 22,887,500
17,980,000 1,224,100
$ 112,370,000 $ 100,565,700
7,649,000
7,649,000
7,649,000
7,649,000
7,649,000
52,749,100
102,737,500
19,204,100
$ 212,935,700
(2,982,100)
(2,982,100)
(2,982,100)
(2,982,100)
(2,982,100)
(14,897,900)
(9,470,800)
(551,100)
$ (39,830,300)
$ 4,666,900
4,666,900
4,666,900
4,666,900
4,666,900
37,851,200
93,266,700
18,653,000
$ 173,105,400
2013 Sales Tax Revenue Bonds (Limited Tax Bonds), Series A (Tax-exempt): Outstanding
In October 2016, the Commission issued sales tax revenue bonds of $76,140,000. A
portion of the 2016 Refunding Bonds was used to refund all of the outstanding Series
A bonds issues in 2009, retire all of the outstanding commercial paper notes, finance a
termination payment in connection with an interest rate swap agreement and pay costs of
issuance. The outstanding 2016 Refunding Bonds mature in annual installments ranging
from $6,305,000 to $7,305,000 on various dates from June 1, 2024 through June 1, 2029
at interest rates ranging from 2.00% to 5.00%.
$ 41,240,000
In accordance with the bond maturity schedule, the approximate annual debt service requirements to
maturity for the 2016 Refunding Bonds payable throughout the term of the bonds are as follows:
Year Ending June 30 Principal Interest Total
2024
2025
2026
2027
2028
2029
$
6,305,000
6,620,000
6,820,000
7,025,000
7,165,000
7,305,000
$
1,148,300
833,100
634,500
429,900
289,400
146,100
$
7,453,300
7,453,100
7,454,500
7,454,900
7,454,400
7,451,100
$ 41,240,000 $ 3,481,300 $ 44,721,300
2017 Sales Tax Revenue Bonds (Limited Tax Bonds), Series A (Tax-exempt): Outstanding
In July 2017, the Commission issued sales tax revenue bonds of $158,760,000 at a
premium of $28,931,909 to fund a portion of the 1-15 Express Lanes project and complete
the 91 Project. The outstanding 2017A Bonds mature in annual installments ranging from
$5,540,000 to $11,440,000 on various dates from June 1, 2024 to June 1, 2039 at interest
rates ranging from 3.00% to 5.00%.
$ 130,700,000
61
105
Riverside County Transportation Commission
Notes to Basic Financial Statements
June 30, 2023
Note 7. Long-term Obligations, Continued
In accordance with the bond maturity schedule, the approximate annual debt service requirements to
maturity for the 2017A Sales Tax Bonds payable throughout the term of the bonds are as follows:
Year Ending June 30 Principal Interest Total
2024
2025
2026
2027
2028
2029-2033
2034-2038
2039
5,540,000
5,820,000
6,110,000
6,415,000
6,735,000
39,050,000
49,590,000
11,440,000
6,472,600
6,195,600
5,904,600
5,599,100
5,278,300
21,022,800
10,477,100
571,900
$
12,012,600
12,015,600
12,014,600
12,014,100
12,013,300
60,072,800
60,067,100
12,011,900
$ 130,700,000 $ 61,522,000 $ 192,222,000
In connection with the issuance of the 2017ASalesTax Bonds,the Commission provided forthe establishment
of an 1-15 Trust Fund for deposits of sales tax revenues as required by the toll indenture for the 1-15 Express
Lanes project.
2017 Sales Tax 2017 Sales Tax Revenue Refunding Bonds (Limited Tax Bonds),
Series B (Tax-exempt):
In December 2017, the Commission issued sales tax revenue bonds of $392,730,000 at a
premium of $80,058,109 to refund all of the outstanding 2010A Bonds and refund a portion
of the 2013 Sales Tax Bonds. The 2017B Refunding Bonds mature in annual installments
ranging from $15,045,000 to $35,045,000 on various dates from June 1, 2024 to June 1,
2039 at interest rates ranging from 4.00% to 5.00%. $ 392,730,000
Outstanding
In accordance with the bond maturity schedule, the approximate annual debt service requirements to
maturity for the 2017B Refunding Bonds payable throughout the term of the bonds are as follows:
Year Ending June 30 Principal Interest Total
2024
2025
2026
2027
2028
2029-2033
2034-2038
2039
$ 15,045,000
15,800,000
16,590,000
17,415,000
18,290,000
143,745,000
134,865,000
30,980,000
$ 392,730,000 $ 180,480,300 $ 573,210,300
19,366,300
18,614,100
17,824,100
16,994,600
16,123,800
62,225,000
27,783,300
1,549,100
$ 34,411,300
34,414,100
34,414,100
34,409,600
34,413,800
205,970,000
162,648,300
32,529,100
The refunding was undertaken to advance refund all of the outstanding 2010A Bonds and the callable portion
of the outstanding 2013 Sales Tax Bonds in the amounts of $37,630,000 and $372,445,000, respectively,
and reduce future debt service payments. The reacquisition price exceeded the net carrying amount of the
old debt by approximately $41,742,900. This amount is reflected as a deferred outflow of resources and
amortized over the life of the old debt, which is the same as the 2017B Refunding Bonds obligation. At June
30, 2023, the unamortized deferred amount on refunding was approximately $28,912,800.
62
106
Riverside County Transportation Commission
Notes to Basic Financial Statements
June 30, 2023
Note 7. Long-term Obligations, Continued
2018 Sales Tax Revenue Refunding Bonds (Limited Tax Bonds), Series A (Tax-exempt): Outstanding
In April 2018, the Commission issued sales tax revenue bonds of $64,285,000 at a premium
of $10,723,789 to refund all of the outstanding Series B and Series C bonds issued in 2009
and finance a termination payment in connection with an interest rate swap agreement with
Bank of America. The refunding was undertaken to eliminate certain risks associated with
managing the Commission's variable rate debt. The outstanding 2018 Refunding Bonds
mature in annual installments ranging from $5,745,000 to $7,290,000 on various dates
from June 1, 2024 through June 1, 2029 at interest rates ranging from 4.00% to 5.00%.
$ 38,875,000
In accordance with the bond maturity schedule, the approximate annual debt service requirements to
maturity for the 2018 Refunding Bonds payable throughout the term of the bonds are as follows:
Year Ending June 30 Principal Interest Total
2024
2025
2026
2027
2028
2029
5,745,000
5,970,000
6,295,000
6,620,000
6,955,000
7,290,000
1,943,800
1,656,500
1,358,000
1,043,200
712,300
364,400
7,688,800
7,626,500
7,653,000
7,663,200
7,667,300
7,654,400
$ 38,875,000 $ 7,078,200 $ 45,953,200
Toll revenue bonds payable: In July 2010, the Commission authorized the issuance and sale of not to exceed
$900 million of toll revenue bonds related to the 91 Project. In March 2020, the Commission authorized the
issuance and sale of not to exceed $725 million of toll revenue refunding bonds related to the RCTC 91
Express Lanes. In October 2021, the Commission authorized the issuance of toll revenue refunding bonds
(2021 Toll Refunding Bonds) consisting of $88,735,000 senior lien federally taxable bonds, $450,629,000
senior lien tax-exempt bonds, and $75,695,000 second lien tax-exempt bonds. The proceeds of the 2021
Toll Refunding Bonds were used to refund a portion of the RCTC 91 Express Lanes 2013 Toll Revenue capital
interest bonds (CIBs), pay the purchase price of the 2013 Toll Revenue CIBs accepted for tender for cash,
refund and prepay the TIFIA loan, fund capitalized interest, make deposits to required reserves, and pay costs
of issuance. Certain senior lien tax-exempt bonds issued were exchanged for certain 2013 Toll Revenue CIBs
accepted for exchange. Additionally, the Commission deposited available funds with an escrow agent to
defease approximately $28,919,000 in accreted value of the 2013 Toll Revenue capital appreciation bonds
(CABs) maturing in the years 2022 through 2025 and 2027 through 2029. The amount outstanding on the
2013 Toll Revenue CABs at June 30, 2023 is $20,347,880. Cost of issuance of $3.8 million was expended
in connection with the issuance of the 2021 Toll Refunding Bonds. Loss on refunding of $6.7 million was
recognized in connection with the issuance of the 2021 Toll Refunding Bonds.
63
107
Riverside County Transportation Commission
Notes to Basic Financial Statements
June 30, 2023
Note 7. Long-term Obligations, Continued
2013 Toll Revenue Bonds, Series B (Capital Appreciation Obligation): Outstanding
In July 2013, the Commission issued $52,829,602 principal amount of serial CABs to fund
a portion of the 91 Project, pay capitalized interest during construction, fund a debt service
reserve fund, fund an initial amount for an operations and maintenance fund, and pay
costs of issuance. In October 2021, the Commission refunded a portion of the 2013 Series
B Senior Bonds. The CABs will not pay current interest as interest will be compounded
commencing December 2021 semiannually and paid at maturity. Therefore, the CABs
will increase in value, or accrete, by the accumulation of such compounded interest from
its initial principal amount to the maturity value in installments ranging from $4,580,000
to $34,220,000 on various dates from June 1, 2025 through June 1, 2043. Interest rates
and yield to maturity range from 3.00% to 4.00%. During 2023, the accretion amount was
$4,394,621; the aggregate accretion through June 30, 2023 is $7,018,372.
$ 68,001,572
In accordance with the bond maturity schedule, the approximate annual debt service requirements to
maturity for the 2013 Toll Bonds CABs payable throughout the term of the bonds are as follows:
Year Ending June 30 Principal Interest Total
2024
2025
2026
2027
2028
2029-2033
2034-2038
2039-2043
$
3,696,600
3,681,000
3,312,500
4,179,600
21,580,500
3,451,400
21,081,600
4,699,700
5,025,700
5,095,100
5,145,400
5,203,100
24,823,300
20,572,400
22,538,700
$
4,699,700
8,722,300
8,776,100
8,457,900
9,382,700
46,403,800
24,023,800
43,620,300
$ 60,983,200 $ 93,103,400 $ 154,086,600
2021 Toll Revenue Refunding Bonds, Series A:
Outstanding
In October 2021, the Commission issued $88,735,000 principal amount to (i) refund a
portion of the Commission's outstanding Toll Revenue Senior Lien Bonds, 2013 Series A
(current interest obligations), (ii) fund capitalized interest with respect to the 2021 Series
A Senior Bonds, (iii) make a deposit to the 2013 Bonds Reserve Account (which secured
the 2021 Series A Senior Bonds and the 2013 Series B Senior Bonds), and (iv) pay certain
costs of issuance of the 2021 Series A Senior Bonds. The outstanding 2021 Toll Revenue
Refunding Bonds, Series A mature in annual installments ranging from $2,305,000 to
$27,750,000 on various dates from June 1, 2030 to June 1, 2041 at interest rates from
2.477% to 3.335%.
$ 88,735,000
Year Ending June 30 Principal Interest Total
2024
2025
2026
2027
2028
2029-2033
2034-2038
2039-2041
$
12,415,000
61,715,000
14,605,000
$ 88,735,000
2,725,300
2,725,300
2,725,300
2,725,300
2,725,300
13,071,200
6,795,900
1,461,500
$
2,725,300
2,725,300
2,725,300
2,725,300
2,725,300
25,486,200
68,510,900
16,066,500
$ 34,955,100 $ 123,690,100
64
108
Riverside County Transportation Commission
Notes to Basic Financial Statements
June 30, 2023
Note 7. Long-term Obligations, Continued
2021 Toll Revenue Refunding Bonds, Series B-1:
In October 2021, the Commission issued $437,895,000 principal amount at a premium
of $46,512,600 to (i) refund and prepay a portion of the Commission's outstanding Toll
Revenue Subordinate Bonds, 2013 TIFIA Series by prepaying a corresponding portion of
its obligations under the related TIFIA Loan Agreement, (ii) pay the purchase price of 2013
Series A Senior Bonds accepted for tender for cash, (iii) make a deposit to the 2021 Series
B Senior Bonds Reserve Account, and (iv) pay certain costs of issuance of the 2021 Series B
Senior Bonds. The outstanding 2021 Toll Revenue Refunding Bonds, Series B-1 mature in
annual installments ranging from $5,010,000 to $65,105,000 on various dates from June 1,
2037 to June 1, 2049 at interest rates from 3.000 to 4.000%. $ 437,895,000
Outstanding
Year Ending June 30 Principal Interest Total
2024
2025
2026
2027
2028
2029-2033
2034-2038
2039-2043
2044-2048
2049
$
- $ 16,065,800
16,065,800
16,065,800
16,065,900
16,065,900
- 80,329,200
66,740,000 79,076,600
134,480,000 53,619,200
200,760,000 25,800,200
35,915,000 1,077,700
$ 437,895,000
16,065,800
16,065,800
16,065,800
16,065,900
16,065,900
80,329,200
145,816,600
188,099,200
226,560,200
36,992,700
$ 320,232.100 $ 758,127,100
2021 Toll Revenue Refunding Bonds, Series B-2:
In October 2021, the Commission issued $12,734,000 principal amount together with the
2021 Series B-1 Senior Bonds, the 2021 Series B Senior Bonds exchanged for the 2013
Series A Senior Bonds accepted a tender for exchange. The outstanding 2021 Toll Revenue
Refunding Bonds, Series B-2 mature in annual installments ranging from $1,894,000 to
$5,420,000 on various dates from June 1, 2044 to June 1, 2048 at an interest rates of
3.000%.
Outstanding
$ 12,734,000
Year Ending June 30 Principal Interest Total
2024
2025
2026
2027
2028
2029-2033
2034-2038
2039-2043
2044-2048
12,734,000
382,000
382,000
382,000
382,000
382,000
1,910,100
1,910,100
1,910,100
1,520,300
$
382,000
382,000
382,000
382,000
382,000
1,910,100
1,910,100
1,910,100
14,254,300
$ 12,734,000 $ 9,160,600 $ 21,894,600
65
109
Riverside County Transportation Commission
Notes to Basic Financial Statements
June 30, 2023
Note 7. Long-term Obligations, Continued
2021 Toll Revenue Refunding Bonds, Series C:
Outstanding
In October 2021, the Commission issued $75,695,000 principal amount at a premium of
$9,455,800, to (i) refund and prepaythe remaining portion of the Commission's outstanding
TIFIA Obligations and (ii) pay certain costs of issuance of the 2021 Series C Second Lien
Bonds. The outstanding 2021 Toll Revenue Refunding Bonds, Series C mature in annual
installments ranging from $17,585,000, to $58,110,000 on various dates from June 1, 2046
to June 1, 2047 at an interest rate of 4.000%.
$ 75,695,000
Year Ending June 30 Principal Interest Total
2024
2025
2026
2027
2028
2029-2033
2034-2038
2039-2043
2044-2047
$
75,695,000
$ 75,695,000
3,027,800
3,027,800
3,027,800
3,027,800
3,027,800
15,139,000
15,139,000
15,139,000
9,786,800
$
3,027,800
3,027,800
3,027,800
3,027,800
3,027,800
15,139,000
15,139,000
15,139,000
85,481,800
$ 70,342,800 $ 146,037,800
2017 TIFIA Loan Agreement -1.15 Express Lanes:
In July 2017, the Commission executed a TIFIA loan of up to $152,214,260, which
proceeds will finance a portion of the costs for the 1-15 Express Lanes project. During
construction and for a period of up to five years following substantial completion, interest
is compounded and added to the initial TIFIA loan. The TIFIA loan requires mandatory
debt service payments at a minimum and scheduled debt service payments to the extent
additional funds are available. TIFIA debt service payments are expected to commence
on June 1, 2025, which is five years after substantial completion of the 1-15 Express Lanes
project, through June 1, 2055. The interest rate of the TIFIA loan is 2.84%. During 2023,
$0 was drawn on the TIFIA loan and $4,644,501 in interest was compounded for a total
compounded interest of $14,816,095.
Outstanding
$ 167,030,355
66
110
Riverside County Transportation Commission
Notes to Basic Financial Statements
June 30, 2023
Note 7. Long-term Obligations, Continued
The TIFIA loan is a senior toll revenue bond per the 1-15 Express Lanes project indenture. In accordance with
the projected TIFIA loan maturity schedule, the annual debt service requirements to maturity for the TIFIA
loan payable throughout the term of the loan are as follows:
Mandatory
Year ending June 30 Principal Interest
Total
2026
2027
2028
2029-2033
2034-2038
2039-2043
2044-2048
2049-2053
2054-2055
Total 176,721,700 $ 112,635,200 $ 289,356,900
Future compounded interest (9,691,345)
Total TIFIA loan $ 167,030,355
$
4,017,700
17,483,200
21,475,000
40,678,500
64,144,700
28,922,600
$
5,018,900
5,018,900
5,025,800
24,942,900
23,762,300
20,852,900
17,012,300
9,709,600
1,291,600
$
5,018,900
5,018,900
5,025,800
28,960,600
41,245,500
42,327,900
57,690,800
73,854,300
30,214,200
Pursuanttothe 1-15 Express Lanes projecttoll indenture, the Commission is required to establish the following
reserve accounts to support the 15 Express Lanes:
• A $16.5 million ramp -up reserve was funded prior to substantial completion and commencement of
express lanes operations. The balance at June 30, 2023 is approximately $15.5 million and reflects a
$1 million withdrawal in accordance with the indenture and is not required to be replenished;
• An $18 million TIFIA loan reserve from an advance of Measure A sales tax revenues up to $3 million
per year from 2019 through 2024 to the extent that 15 Express Lanes revenues are not sufficient
to fund the TIFIA loan reserve. Through FY 2020/21 $9 million was funded by Measure A Sales Tax
revenue and $6 million was funded by 15 Express Lanes toll revenues for a total of $15 million funded
through FY 2022/23. The balance as of June 30, 2023 is approximately $15.4 million; and
• Up to a $38.5 million backstop loan from Measure A sales tax revenues of up to $3.85 million per
year to the extent 15 Express Lanes revenues are not sufficient to cover operations and maintenance
costs, TIFIA loan mandatory debt service, and TIFIA scheduled interest. Funding for this account is
scheduled to begin in FY 2024/25.
The Commission has funded $9,000,000 required for the TIFIA loan reserve with an advance of Measure A
sales tax revenues. The loan is included in advances from the Measure A Western County Special Revenue
fund to the 15 Express Lanes Enterprise fund.
Commercial paper notes payable: In February 2005, the Commission authorized the issuance of tax-exempt
commercial paper notes in an amount not to exceed $200,000,000 for the primary purpose of financing right
of way and mitigation land acquisition and project development costs of capital projects under the 2009
Measure A. The Commission reduced the authorization to $60,000,000 in September 2013. As of June 30,
2023, $0 was outstanding in commercial paper notes.
The source of revenue to repay the commercial paper notes and any subsequent long-term debt refinancing
is the 2009 Measure A sales tax. Interest is payable on the respective maturity dates of the commercial
paper notes, which is up to 270 days from the date of issuance. The maximum allowable interest rate on the
commercial paper notes is 12%.
67
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Riverside County Transportation Commission
Notes to Basic Financial Statements
June 30, 2023
Note 7. Long-term Obligations, Continued
As a requirementforthe issuance of the commercial paper notes, the Commission entered into a $60,750,000
irrevocable direct draw letter of credit and reimbursement agreement with State Street Bank and Trust
Company (State Street) as credit and liquidity support for the commercial paper notes through October
2025. The commitment fees paid to State Street were $258,694 in 2023.
Funds are drawn under the letter of credit to pay debt service on the commercial paper notes, and the
Commission is required to reimburse the bank for such drawings. Amounts drawn on the letter of credit
and not reimbursed within 30 days are not due until five years after the date of such draw. Accordingly, the
commercial paper notes are classified as long-term liabilities in the Commission's government -wide financial
statements. There were no unreimbursed draws by the Commission on the remaining letter of credit during
the year ended June 30, 2023, nor were there any amounts outstanding under the remaining letter of credit
agreement at June 30, 2023.
The Commission's commercial paper program functions similar to bond anticipation notes for reporting
purposes, as the commercial paper notes are issued and retired with long-term debt issuances. Commercial
paper notes are classified as long-term debt as long as the Commission's letter of credit facility extends at
least one year past its fiscal year end; otherwise, the commercial paper notes are classified as a fund liability.
Arbitrage rebate: The Tax Reform Act of 1986 instituted certain arbitrage restrictions with respect to the
issuance of tax-exempt bonds and commercial paper notes after August 31, 1986. In general, arbitrage
regulations deal with the investment of all tax-exempt bond and commercial paper note proceeds at
an interest yield greater than the interest yield paid to bondholders or noteholders. Failure to follow the
arbitrage regulations could result in all interest paid to bondholders or noteholders retroactively rendered
taxable. In accordance with the arbitrage regulations, if excess earnings were calculated, 90% of the amount
calculated would be due to the Internal Revenue Service at the end of each five-year period. The remaining
10% would be recorded as a liability and paid after all bonds had been redeemed. During the current year,
the Commission performed calculations of excess investment earnings on all bond and commercial paper
financings. There was no arbitrage liability at June 30, 2023.
Lease Liability: For the year ended June 30, 2023, the financial statements include GASB Statement No. 87,
Leases. The primary objective of this statement is to enhance the relevance and consistency of information
about government's leasing activities. This statement establishes a single model for lease accounting based
on the principle that leases are financings of the right to use and underlying asset. Under this statement, a
lessor is required to recognize a lease liability and an intangible right to use lease asset. The discount rate is
based on the entity's incremental borrowing rate.
On 6/20/2011, the Commission entered into a 48 -month lease for the use of Pedley Metrolink Station dark
fiber. An initial lease liability was recorded in the amount of $56,267. As of 06/30/2023, the value of the lease
liability is $28,452. The Commission is required to make monthly fixed payments of $1,200. The lease has an
interest rate of 1.1690%. The value of the right to use asset as of 06/30/2023 is $56,267 with accumulated
amortization of $28,134.
On 11/8/2018, Commission entered into a 28 -month lease for the use of Canon copiers. An initial lease
liability was recorded in the amount of $37,758. As of 06/30/2023, the value of the lease liability is $6,555.
The Commission is required to make monthly fixed payments of $1,313. The lease has an interest rate of
0.7510%. The value of the right to use asset as of 06/30/2023 is $37,758 with accumulated amortization of
$32,097.
68
112
Riverside County Transportation Commission
Notes to Basic Financial Statements
June 30, 2023
Note 7. Long-term Obligations, Continued
On 3/27/2018, the Commission entered into a 75 -month lease for the use of 4080 Lemon Street, 3rd Floor.
An initial lease liability was recorded in the amount of $3,856,996. As of 06/30/2023, the value of the lease
liability is $2,754,936. The Commission is required to make monthly fixed payments of $48,220. The lease
has an interest rate of '1.5130%. The value of the right to use asset as is 06/30/2023 of $3,856,996 with
accumulated amortization of $1,220,676.
On 07/01/2021, the Commission entered into a 36 -month lease for the use of Automobile Parking - Park &
Ride. An initial lease liability was recorded in the amount of $25,205. As of 06/30/2023, the value of the lease
liability is $8,467. The Commission is required to make quarterly fixed payments of $2,130. The lease has an
interest rate of 1.0030%. The value of the right to use asset as of 06/30/2023 is $25,205 with accumulated
amortization of $16,803.
In accordance with the standard, the principal and interest expected to maturity for governmental activities
is as follows:
Year Ending June 30 Principal Interest Total
2024
2025
2026
2027
2028
Total lease liability
617,681
630,706
645,270
675,167
229,586
37,966
28,638
19,022
9,053
724
655,646
659,344
664,292
684,221
230,310
2.798,410 $ 95.403 $ 2,893,813
Subscription Liability: For the year ended 6/30/2023, the financial statements include the adoption of GASB
Statement No. 96, Subscription -Based Information Technology Arrangements. The primary objective of
this statement is to enhance the relevance and consistency of information about governments' subscription
activities. This statement establishes a single model for subscription accounting based on the principle that
subscriptions are financings of the right to use an underlying asset. Under this Statement, an organization is
required to recognize a subscription liability and an intangible right -to -use subscription asset. The discount
rate is based on the entity's incremental borrowing rate.
On 03/18/2021, the Commission entered into a 69 -month subscription for the use of Cloud Based Data
Base System. An initial subscription liability was recorded in the amount of $296,843. As of 06/30/2023, the
value of the subscription liability is $256,619. The Commission is required to make annual fixed payments of
$62,400. The subscription has an interest rate of 2.4440%. The value of the right to use asset as of 06/30/2023
is $296,843 with accumulated amortization of $51,625. The Commission has 2 extension option(s), each for
24 months.
On 04/27/2022, the Commission entered into a 58 -month subscription for the use of Questica Budget
Software. An initial subscription liability was recorded in the amount of $828,274. As of 06/30/2023, the
value of the subscription liability is $658,007. The Commission is required to make annual fixed payments
of $172,535. The subscription has an interest rate of 2.8360%. The value of the right to use asset as of
06/30/2023 is $828,274 with accumulated amortization of $171,367.
Year Ending June 30 Principal Interest Total
2024
2025
2026
2027
2028
Total subscription liability
$
210,002
204,218
215,005
231,049
54,352
$ 914,626
24,933
19,197
13,586
7,673
1,328
66,717 $ 981,343
$
234,935
223,415
228,591
238,722
55,680
59
113
Riverside County Transportation Commission
Notes to Basic Financial Statements
June 30, 2023
Note 8. Net Position and Fund Balances
Net position: Net investment in capital assets of $306,568,725, as reported on the statement of net position,
represents capital assets, net of accumulated depreciation and amortization, of $1,351,213,184 less the
related debt of $1,044,644,459.The related debt includes the portion of the sales tax revenue and toll revenue
bonds that was used for the development of tolled express lane capital assets. The deficit in business -type
activities will be reduced by future toll revenues for the payment of outstanding toll obligations.
Net Investment in Capital Assets Governmental Activities Business -Type Activities Total
Capital assets, net
Less: related debt
Total
$ 744,749,533
(261,444,846)
$ 483,304,687
$ 606,463,651
(783,199,613)
$ (176,735,962)
$ 1,351,213,184
(1,044,644,459)
$ 306,568,725
Additionally, the statement of net position reports $1,392,072,851 of restricted net position, of which
$587,911,389 is restricted by enabling legislation with the remaining balance reported as an unrestricted
deficit of $510,152,633.
Fund balances:
Governmental Funds:
Measure A: Measure A sales tax revenues are allocated to the three defined geographic areas of Riverside
County, consisting of Western County, Coachella Valley, and Palo Verde Valley in proportion to the funds
generated within those areas. Revenues must then be allocated to the programs of the geographic areas
according to percentages as defined by the Measure A ordinance and are legally restricted for applicable
program expenditures. Bond and commercial paper note proceeds are allocated to the geographic areas
based on the estimated uses. Accordingly, the related fund balances are classified as follows:
Highways: Funds are to be used for project costs including engineering, right of way acquisitions, and
construction of the Western County highways and Coachella Valley highways and regional arterials.
Funds for new corridors are to be used for environmental clearance, right of way acquisition, and
construction of four new Western County transportation corridors identified through CETAP. In order
to attract commercial and industrial development and jobs in the Western County, funds are expended
to create an infrastructure improvement bank to improve and construct interchanges, provide public
transit linkages or stations, and make other improvements to the transportation system. Funds are also
provided to support bond financing costs. These program funds are intended to supplement existing
federal, state, and local resources. Coachella Valley highway and regional arterial funds are matched by
TUMF revenues generated in the Coachella Valley. Accordingly, funds for highways, Coachella Valley
regional arterials, new corridors, economic development, and bond financing are reflected as restricted
for these specific purposes as stipulated by the 1989 Measure A and 2009 Measure A.
Commuter rail: Funds for rail operations and to match federal funds for capital are restricted as stipulated
by the 2009 Measure A Western County public transit program. Certain state revenues are restricted for
the planning and development of the new Coachella Valley/San Gorgonio Pass corridor rail service.
Regional arterials: Funds for regional arterials are used to implement the planned Western County
regional arterial system, as defined by WRCOG.
Local streets and roads: Funds to be expended by local jurisdictions for the construction, repair, and
maintenance of local streets and roads are reflected as restricted as stipulated bythe 2009 MeasureA.The
County and local cities are required to supplement those expenditures with other previously dedicated
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Riverside County Transportation Commission
Notes to Basic Financial Statements
June 30, 2023
Note 8. Net Position and Fund Balances, Continued
revenue sources to maintain road improvements. Monies are disbursed to the jurisdictions which comply
with the requirements to maintain the same level of funding for streets and roads as existed prior to the
passage of the 2009 Measure A and participate in TUMF (as applicable in the Western County and
Coachella Valley areas) and the MSHCP in Western County and which annually submit a five-year capital
improvement plan.
Commuter assistance and transit: Funds for public transit are used to promote and subsidize commuter
assistance programs such as ridesharing and telecommuting and specialized transportation to guarantee
reduced transit fares, expand existing transit services, and implement new transit services for seniors
and persons with disabilities. These funds are restricted as stipulated by the 2009 Measure A. Funds
for intercity bus services in Western County and bus replacement and more frequent service in the
Coachella Valley are restricted as stipulated by the 2009 Measure A.
Debt service: Certain bond proceeds that have been used to make required sinking fund payments in
the Debt Service fund as required by the bond agreements are classified as restricted. Amounts held by
the trustee equal to the maximum annual debt service are recorded in the Debt Service fund as restricted.
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Riverside County Transportation Commission
Notes to Basic Financial Statements
June 30, 2023
Note 8. Net Position and Fund Balances, Continued
Transportation Development Act: Restricted fund balance for the LTF represents the apportionments related
to transit programs by geographic area, bicycle and pedestrian facilities, and planning and programming
services and unapportioned revenues. Restricted fund balance forthe STA and State of Good Repair represents
the apportionments for transit by geographic area. The TDA restrictions at June 30, 2023 are as follows:
Local Transportation
Fund
State Transit State of Good
Assistance Repair
Total
Bicycle and pedestrian facilities
Transit and specialized transportation
Western County:
Bus transit:
$ 9,475,739
City of Banning 19,286 6,189,762
City of Beaumont 100,000 6,699,391
City of Corona 1,270,193
City of Riverside 156,676
Riverside Transit Agency 2,421,098 28,951,416
Apportioned and unallocated 204,909,783 32,664,850
Commuter rail:
Commission 9,536,494 964,074
Apportioned and unallocated 44,335,755 37,564,845 1,054,969
Total Western County 251,785,922 123,033,627 8,359,974
Coachella Valley:
BusTransit
SunLine Transit Agency 1,233,219 14,302,932 3,233,355 18,769,506
Apportioned and unallocated 46,517,910 3,470,750 911,576 50,900,236
Commuter rail:
Commission 235,927 - 235,927
Apportioned and unallocated 381,133 - 381,133
$ 9,475,739
45,722
175,671
407,250
399,357
2,997,849
2,315,082
6,254,770
6,975,062
1,677,443
556,033
34,370,363
239,889,715
10,500,568
82,955,569
383,179,523
Total Coachella Valley 47,751,129 18,390,742 4,144,931 70,286,802
Palo Verde Valley:
Palo Verde Valley Transit Agency - 526,5433 96,731 623,274
Apportioned and unallocated for transit 3,127,104 207,637 60,000 3,394,741
Total Palo Verde Valley 3,127,104 734,180 156,731 4,018,015
Unapportioned funds 24,437,031 - - 24,437,031
Total transit and specialized transportation $ 336,576,925 $ 142,158,549 $ 12,661,636 $ 491,397,110
Commuter rail: Restricted fund balances in the General fund and a nonmajor governmental fund represent
TDA monies to be used for commuter rail operations and capital.
Transportation Uniform Mitigation Fee: TUMF revenues to be received by the Commission are to be used
for new CETAP corridors and the regional arterial system in Western County and are restricted as follows:
CETAP: Funds for the development of new transportation corridors are used to provide congestion
relief and mobility within the County and between the County and its neighboring Orange and San
Bernardino counties. Funds will be matched by revenues of $370 million generated from the 2009
Measure A.
Regional arterials: Funds for regional arterials are used to implement the planned Western County
regional arterial system. Funds will be matched by revenues of $300 million generated from the 2009
Measure A.
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Riverside County Transportation Commission
Notes to Basic Financial Statements
June 30, 2023
Note 8. Net Position and Fund Balances, Continued
Prepaid amounts: Prepaid amounts are reported as nonspendable fund balance as they are in
nonspendable form.
Motorist assistance: Funds in the Service Authority for Freeway Emergencies and Freeway Service Patrol
Special Revenue funds are reported as nonmajor governmental funds of $4,700,897 and $8,627,803,
respectively, to assist motorists on County roads are restricted as stipulated by the State.
General government: Funds allocated by Measure A, TUMF, LTF, motorist assistance, STA, Coachella
Valley Rail, and SB 132 programs to the General Fund have been assigned by the Commission for
general government administration.
Unassigned: The Regional Conservation Nonmajor fund reported a negative unassigned fund balance
of $3,392. The Commission anticipates future reimbursements from the Western Riverside County
Regional Conversation Authority will reduce the negative fund balance.
Proprietary Funds:
RCTC 91 Express Lanes: Restricted net position for toll operations consists of net toll revenues from toll
operations in the RCTC 91 Express Lanes Enterprise fund in accordance with the toll bond indenture.
15 Express Lanes: Restricted net position for toll operations consist of net toll revenues from toll
operations in the 15 Express Lanes Enterprise fund in accordance with the toll bond indenture.
Note 9. Commitments and Contingencies
Real property and project agreements: The Commission has entered into other agreements in the ordinary
course of business with companies and other governmental agencies for the acquisition of real property as
well as the engineering and construction of certain highway and commuter rail projects. These agreements,
which are significant, are funded with available and future revenues and debt proceeds.
Litigation: Certain claims involving disputed construction costs and property acquisition costs, including
goodwill claims, have arisen in the ordinary course of business. Additionally, the Commission is a defendant
in lawsuits. Although the outcome of these matters is not presently determinable, management does not
expect that the resolution of these matters will have a material adverse impact on the financial condition of
the Commission.
The Commission is party to an ongoing litigation which if settled, would be material to the governmental
activity's enterprise fund. Due to the nature of the litigation, outlays, if any, would be recorded as a capital
asset in the fiscal year paid.
Note 10. Joint Agreements
Joint ventures: The Commission is one of five members of the SCRRA, an independent joint powers authority
created in June 1992. The SCRRA's board consists of one member from the Ventura County Transportation
Commission; two each from the Orange County Transportation Authority (OCTA), the San Bernardino
Associated Governments, and the Commission; and four members from the Los Angeles County Metropolitan
Transportation Authority. The SCRRA is responsible for implementing and operating a regional commuter
rail system (Metrolink) in five southern California counties. As a member of SCRRA, the Commission makes
capital and operating contributions for its pro rata share of rail lines servicing the County. The Commission
expended $26,339,318 and $3,340,844 during 2023 for its share of Metrolink operating and capital costs,
respectively. As of June 30, 2023, cumulative capital contributions were $67,066,253. Other funds for
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Riverside County Transportation Commission
Notes to Basic Financial Statements
June 30, 2023
Note 10. Joint Agreements, Continued
rail service are contributed to the SCRRA by the State from state rail bonds on behalf of the Commission.
Separate financial statements are prepared by and available from the SCRRA, which is located at 900 Wilshire
Boulevard, Suite 1500, Los Angeles, California 90017.
In May 2013 the Commission became a full voting member of the Los Angeles —San Diego —San Luis Obispo
(LOSSAN) Rail Corridor Agency with the intent to have greater involvement in regional rail issues because of
its legal ownership rights regarding passenger rail service between Fullerton and Los Angeles. The LOSSAN
Rail Corridor Agency is a locally governed joint powers authority comprised of 13 agencies created to
oversee the intercity passenger rail service in the travel corridor between San Diego and San Luis Obispo
County. The Commission's share of administration costs is subject to future negotiations; however, during
2023 the Commission contributed $0 for administration efforts.
In May 2017, the Commission became a member of the California Vanpool Authority (CalVans) to share
resources and provide public vanpool transportation options for the traveling public. CalVans is a joint
powers authority comprised of 12 agencies created to operate vanpool services within the territories of the
member agencies. The Commission did not expend any funds during 2023 for CalVans.
RCTC 91 Express Lanes cooperative agreements: The RCTC 91 Express Lanes are jointly operated with the
existing OCTA 91 Express Lanes and collectively referred to as the 91 Express Lanes.
Under the Orange -Riverside Cooperative Agreement, which was entered into in December 2011, the
Commission and OCTA agreed on the use of the same initial toll operator, cost and revenue sharing, toll
policies, business rules, interoperability of technology, and marketing activities as well as OCTA review of
design plans and construction activities for the 91 Project.
In May2013the Commission entered into a three -party agreement with OCTA and the third-partytoll operator,
for the operations of the 91 Express Lanes. This ensures a streamlined and consistent intercounty travel for
motorists on the OCTA 91 Express Lanes in Orange County and RCTC 91 Express Lanes in Riverside County.
The third -party toll operator provides operating services in the annual amount of $6,087,538 plus inflation for
five initial years with two extension options, subject to Board of Commissioners approval. The third -party toll
operator is responsible for the day-to-day operations of the toll facility; another contractor is responsible for
maintaining the roadside toll collection system under a separate agreement with the Commission. The three -
party agreement expired on March 6, 2022 and was amended March 7, 2022 for an initial five-year term, with
two 36 month options, not to exceed 13 years.
In November 2019, the Commission awarded an agreement to the third -party operator to develop and
install a new back -office system and to provide express lane operator services, including the back office and
customer services center. The agreement is a three -party contract including OCTA. The contract has a five-
year term beginning upon completion and implementation of the new back -office system, plus two 3 -year
options, to operate both the OCTA and RCTC 91 Express Lanes.The operating term began on March 7, 2022
with the conversion to the new back -office system.
1-15 Corridor Freight and Express Lanes Project: The Commission and San Bernardino County Transportation
Agency (SBCTA) entered into a Cooperative Agreement (Agreement) on May 24, 2023, formalizing the
coordination of the toll facilities between Riverside and San Bernadino counties; collectively referred to as
the 1-15 Corridor Freight and Express Lanes project or 1-15 Next. Specifically, the Agreement requires the
Commission to assign approximately 2.2 miles of its existing RCTC 15 Toll Lanes to SBCTA in exchange for
annual toll revenue payments payable by SBCTA.
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Riverside County Transportation Commission
Notes to Basic Financial Statements
June 30, 2023
Note 10. Joint Agreements, Continued
The assignment is made by the Commission to SBCTA in preparation for planning and constructing a toll
facility within the median of 1-15. Construction by SBCTA is anticipated to begin during calendar year 2024
with an estimated completion date of summer 2026.
As of June 30, 2023, no impacts have been incurred by the existing RCTC 15 Express Lanes as a result of
entering into this Agreement. However, SBCTA will reimburse RCTC 15 Express Lanes for any impacts during
construction phase of the project. Furthermore, assignment of the RCTC 15 Express Lanes will not occur until
sixty (60) days prior to project completion estimated to occur during calendar year 2026.
Management services agreement: The Commission and RCA entered into an Implementation and
Management Services Agreement effective January 1, 2021. Under the agreement, the Commission shall
administer, coordinate, and supervise the activities of the RCA as set forth in the RCA Joint Exercise of Powers
Agreement and shall act for RCA in accomplishing its purposes. The RCA oversees and administers the
Multiple Species Habitat Conservation Plan (MSHCP), one of America's most ambitious environmental efforts,
in support of its member agencies. The MSHCP is a comprehensive, multi -jurisdictional habitat conservation
plan focusing on the permanent conservation of 500,000 acres and the protection of 146 covered species,
including 33 that are currently listed as threatened or endangered. RCA reimbursed the Commission
$8,474,565 during the year ended June 30, 2023 in connection with the management services provided
under this agreement.
Note 11. Employees' Pension Plans
General Information about the CaIPERS Pension Plan: The Commission contracts with CaIPERS to provide
its employees retirement as well as death and retirement disability benefits, which are paid by the CalPERS
under a cost sharing multiple -employer plan. CalPERS issues publicly available reports that include a full
description of the pension plan regarding benefit provisions, assumptions and membership information
that can be obtained from its executive office located at 400 P Street, Sacramento, California 95814, or by
visiting the CalPERS website at www.calpers.ca.gov. All permanent Commission employees are eligible to
participate in the Miscellaneous Employee Pension Plan, cost -sharing multiple employer defined benefit
pension plan administered by CalPERS. Benefit provisions under the Plan are established by State statute
and Commission resolution.
Benefits Provided - CaIPERS provides service retirement and disability benefits, annual cost of living
adjustments and death benefits to plan members, who must be public employees and beneficiaries. Benefits
are based on years of credited service, equal to one year of full-time employment. Employees hired prior to
January 1, 2013 and attaining the age of 55 with five years of credited California service (service) are eligible
for normal retirement and are entitled to a monthly benefit of 2.7% of their final compensation for each year
of service. Final compensation is defined as the highest annual salary earned. Retirement may begin at age
50 with a reduced benefit rate. The plan also credits employees for unused sick leave. Employees hired on
or after January 1, 2013 who are not "classic" members and attaining the age of 62 with five years of credited
service are eligible for normal retirement and are entitled to a monthly benefit of 2% of their three-year
final compensation for each year of service. Retirement may begin at age 52 with a reduced benefit rate.
Upon separation from the plan prior to retirement, members' accumulated contributions are refundable with
interest credited through the date of separation. All members are eligible for non -duty disability benefits after
10 years of service. The pre -retirement death benefit is one of the following: the 1957 Survivor Benefit - level
3 or the Optional Settlement 2W Death Benefit. The post -retirement death benefit is one of the following:
lump sum or survivor allowance. The cost -of -living adjustments for each plan are applied as specified by the
Public Employees' Retirement Law.
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Riverside County Transportation Commission
Notes to Basic Financial Statements
June 30, 2023
Note 11. Employees' Pension Plans, Continued
The Plan provisions and benefits in effect at June 30, 2023, are summarized as follows:
Miscellaneous
Hire date
Prior to January 1, 2013 On or after January 1, 2013
Benefit formula
Benefit vesting schedule
Benefit payments
Retirement age
Monthly benefits, as a % of eligible compensation
Required employee contribution rates
Required Commission contribution rates
2.7%@ 55
5 years of service
Monthly for life
50 - 55
2.0% to 2.7%
8.00%
16.21%
2%@62
5 years of service
Monthly for life
52-62
1.0%to 2.0%
8.00%
8.03%
Contributions - Section 20814(c) of the California Public Employees' Retirement Law requires that the
employer contribution rates for all public employers be determined on an annual basis by the actuary and
shall be effective on the July 1 following notice of a change in rate. Funding contributions for the Plan are
determined annually on an actuarial basis as of June 30 by CaIPERS. The actuarially determined rate is the
estimated amount necessary to finance the costs of benefits earned by employees during the year, with an
additional amount to finance any unfunded accrued liability. The Commission is required to contribute the
difference between the actuarially determined rate and the contribution rate of employees.
For the year ended June 30, 2023, the contributions recognized as part of pension expense for the Plan were
as follows:
Miscellaneous
Contributions - Commission
Contributions - Employee
$ 1,304,460
765,820
Pension Liabilities, Pension Expenses, and Deferred Outflows/Inflows of Resources Related to Pensions:
As of June 30, 2023, the Commission reported a net pension liability for its proportionate shares of the net
pension liability of the Plan as follows:
Proportionate Share of Net Pension Liability
Miscellaneous
$ 1,868,313
The Commission's net pension liability for the Plan is measured as the proportionate share of the net pension
liability. The net pension liability of the Plan is measured as of June 30, 2023, and the total pension liability
for the Plan used to calculate the net pension liability was determined by an actuarial valuation as of June 30,
2022 rolled forward to June 30, 2023 using standard update procedures. The Commission's proportion of
the net pension liability was based on a projection of the Commission's long-term share of contributions to
the pension plan relative to the projected contributions of all participating employers, actuarially determined.
The Commission's proportionate share of the net pension liability for the Plan as of June 30, 2022 and 2023
is as follows:
Miscellaneous
Proportion -June 30, 2022
Proportion -June 30, 2023
Change - Increase (Decrease)
(0.33677%)
0.03993%
0.37670%
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Riverside County Transportation Commission
Notes to Basic Financial Statements
June 30, 2023
Note 11. Employees' Pension Plans, Continued
For the year ended June 30, 2023, the Commission recognized pension expense of $10,009,626. At June 30,
2023, the Commission reported deferred outflows of resources and deferred inflows of resources related to
pensions from the following sources:
Deferred Outflows of
Resources
Deferred Inflows of
Resources
Pension contributions subsequent to measurement date
Differences between actual and expected experiences
Changes in assumptions
Differences between contributions and the proportionate share of contributions
Changes in Commission's proportion
Net differences between projected and actual earnings on plan investments
Tota I
1,304,460
37,519
191,448
1,768,361
5,538,825
342,225
$ 9,182,838
$
25,129
1,371,708
1,638,896
$ 3,035,733
The $1,304,460 reported as deferred outflows of resources related to contributions subsequent to the
measurement date will be recognized as a reduction of the net pension liability in the subsequent fiscal year.
Other amounts reported as deferred outflows of resources and deferred (inflows) of resources related to
pensions will be recognized as pension expense as follows:
Year Ending June 30
2024
2025
2026
2027
1,838,248
1,672,534
1,122,546
209,317
$ 4,842,645
Actuarial Methods and Assumptions -The total pension liability in the June 30, 2022 actuarial valuation was
determined using the following actuarial assumptions:
Miscellaneous
Valuation Date
Measurement Date
Actuarial Cost Method
Actuarial Assumptions:
Discount Rate
Inflation
Projected Salary Increase
Investment Rate of Return
Mortality
June 30, 2021
June 30, 2022
Entry -Age Normal Cost Method
6.90%
2.30%
Varies by entry age and service
6.90% net of pension plan investment and administrative expenses, includes inflation
Derived using CaIPERS' membership data for all funds
The mortality table was developed based on CaIPERS specific data. The rates incorporate Generational
Mortality to capture ongoing mortality improvement using 80% of Scale MP 2020 published by the Society
of Actuaries. Further details of the experience study can be found on the CaIPERS website.
Changes in Actuarial Assumptions - For the measurement period ended June 30, 2022, the discount rate
was reduced from 7.15% to 6.90%, the inflation rate was reduced from 2.50% to 2.30%, and the investment
rate of return was reduced from 7.15% to 6.90%.
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Riverside County Transportation Commission
Notes to Basic Financial Statements
June 30, 2023
Note 11. Employees' Pension Plans, Continued
Discount Rate - The discount rate used to measure the total pension liability was 6.90% for the Plan. The
projection of cash flows used to determine the discount rate assumed that contributions from plan members
will be made at the current member contribution rates and that contributions from employers will be made
at statutorily required rates, actuarially determined. Based on those assumptions, the Plan's fiduciary net
position was projected to be available to make all projected future benefit payments of current plan members.
Therefore, the long-term expected rate of return on plan investments was applied to all periods of projected
benefit payments to determine the total pension liability.
Long Term Expected Rate of Return - In determining the long-term expected rate of return, CalPERS
considered long-term market return expectations as well as the expected pension fund cash flows. Projected
returns for all asset classes are estimated and combined with risk estimates, are used to project compound
(generic) returns over the long-term. The discount rate used to discount liabilities was informed by the long-
term projected portfolio return.
The table below reflects the expected real rates of return by asset class.
Asset Class (a) Current Target Allocation Real Return Years 1 -10 (1,2)
Global equity - cap -weighted
Global equity- non -cap weighted
Private equity
Treasury
Mortgage -backed securities
Investment grade corporates
High yield
Emerging market debt
Private debt
Real assets
Leverage
Total
30%
12%
13%
5%
5%
10%
5%
5%
5%
15%
(5%)
100%
(1) An expected inflation rate of 2.3% used for this period.
(2) Figures are based on the 2021/22 Asset Liability Management study
4.45%
3.84%
7.28%
0.27%
0.50%
1.56%
2.27%
2.48%
3.57%
3.21%
(0.59%)
Sensitivity of the Collective Net Pension Liability to Changes in the Discount Rate - The following presents
the Commission's collective net pension liability/(asset) for the Plan, calculated using the discount rate for the
Plan, as well as what the Commission's collective net pension asset would be if it were calculated using a
discount rate that is 1% below or 1% higher than the current rate:
Miscellaneous
1% Decrease
Net Pension Liability
Current Discount Rate
Net Pension Liability
1% Increase
Net Pension Asset
5.90%
$8,454,933
6.90%
$1,868,313
7.90%
($3,550,841)
Pension Plan Fiduciary Net Position - Detailed information about the pension plan's fiduciary net position is
available in the separately issued CaIPERS financial reports.
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Riverside County Transportation Commission
Notes to Basic Financial Statements
June 30, 2023
Note 11. Employees' Pension Plans, Continued
Payable to the Pension Plan -At June 30, 2023, the Commission reported a payable of $0 for the outstanding
amount of contributions to the pension plan required for the year ended June 30, 2023.
401(a) plan: The Commission offers its employees a 401(a) single employer defined contribution plan
referred to as the Money Purchase Plan & Trust (Plan), which covers all permanent full-time employees.
Employees are fully vested in the Plan after five years. The Plan, which is administered by the International
City/County Management Association (ICMA), requires the Commission to make a contribution of 7.5% of
the employees' earnings for the Plan year. Fiduciary responsibility and reporting of the Plan assets rests with
ICMA. The Commission has the authority to amend the contribution requirements. Total payroll for covered
employees for the current year was $9,934,449. The Commission's contributions to the Plan were $727,420
for the year ended June 30, 2023.
Note 12. Post -employment Benefits Other Than Pensions (OPEB)
Plan description - The Commission's OPEB plan through the CERBT, is an agent multiple -employer defined
benefit plan for eligible retirees and their dependents. CERBT issues a publicly available financial report that
can be obtained from its executive office or its website.
Benefits provided - The Commission provides post -employment health benefits for eligible retirees and
their dependents at retirement. For employees hired on or after January 1, 2007, retirees must have a
minimum of 10 years of PERS service and no less than five years of Commission service in order to receive
post -employment health benefits in accordance with PERS as per Government Code Section 22893. For
employees hired prior to January 1, 2007, retirees are not required to meet the eligibility criteria and may
receive post -employment health benefits at the monthly health benefit rate paid for active employees, which
was $1,500 at June 30, 2023 The Commission's contributions toward premiums for retiree health insurance
are coordinated with Medicare and other benefits provided by federal and state law, when available, to the
extent it reduces the cost of insurance premiums.
Employees covered by benefit terms at June 30, 2023 are as follows:
Inactive employees or beneficiaries currently receiving benefit payments 31
Inactive employees entitled to but not yet receiving benefits 3
Active employees 71
Total 105
Contributions - The contribution requirements of plan members are established and may be amended by
the Commission. The Commission has adopted a policy to fund 100% of the actuarially determined amount.
For the year ended June 30, 2023, the Commission's average contribution rate was 10.8% of covered -
employee payroll. Employees are not required to contribute to the plan.
Net OPEB Asset - The Commission's net OPEB asset was measured as of June 30, 2022, and the total OPEB
asset used to calculate the net OPEB asset was determined by an actuarial valuation as of that date.
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Riverside County Transportation Commission
Notes to Basic Financial Statements
June 30, 2023
Note 12. Post -employment Benefits Other Than Pensions (OPEB), Continued
Actuarial assumptions -The total OPEB liability in the June 30, 2022 actuarial valuation was determined using
the following assumptions, applied to all periods included in the measurement, unless otherwise specified:
Actuarial Assumptions June 30, 2022 Measurement Date
Inflation
Discount rate
Salary increases
Investment rate of return
Healthcare cost trend rates
2.75% per annum
5.25% per annum
3.00% aggregate
5.25%
Non -Medicare: 7.0% for 2022, decreasing to an ultimate rate of 4.0% in 2076 and later years
Medicare: 6.1%for 2022, decreasing to an ultimate rate of 4.0% in 2076 and later years
Mortality rates are based on projected fully generational with Scale MP -2020.
The actuarial assumptions used in the June 30, 2022 actuarial valuation were based on the results of an
actuarial experience study for the period July 1, 2021 to June 30, 2022.
The long-term expected rate of return on OPEB plan investments was determined using a building-block
method in which expected future real rates of return (expected returns, net of OPEB plan investment expense
and inflation) are developed for each major asset class.
In determining the long-term expected rate of return, CaIPERS considered both short-term and long-term
market return expectations as well as the expected pension fund cash flows. Using historical returns of all the
funds' asset classes, expected compound (geometric) returns were calculated over the short-term (first 10
years) and the long-term (11 years +) using a building-block approach. Using the expected nominal returns
for both short-term and long-term, the present value of benefits was calculated for each fund. The expected
rate of return was set by calculating the rounded single equivalent expected return that arrived at the same
present value of benefits for cash flows as the one calculated using both short-term and long-term returns.
The expected rate of return was then set equal to the single equivalent rate calculated above and adjusted
to account for assumed administrative expenses.
Asset Class
Target Allocation
Strategy 2
Expected Real
Rate of Return
Global equity
Fixed income
TIPS
Commodities
REITs
Assumed long-term rate of inflation
Expected long-term net rate of return
34%
41%
5%
3%
17%
4.56%
1.56%
(0.08%)
1.22%
4.06%
2.75%
5.25%
Changes in Actuarial Assumptions - For the measurement period ended June 30, 2022, the discount rate
was reduced from 7.15% to 6.90%, the inflation rate was reduced from 2.50% to 2.30%, and the investment
rate of return was reduced from 7.15% to 6.90%.
Discount rate - The discount rate to measure the total OPEB asset was 5.25%. The projection of cash flows
used to determine the discount rate assumed that contributions from the Commission will be made at
contractually required rates, actuarially determined. Based on this assumption, the OPEB plan's fiduciary
net position was projected to be available to make projected OPEB payments for current and inactive
employees. Therefore, the long-term expected rate of return on OPEB plan investments was applied to all
periods of projected benefit payments to determine the total OPEB asset.
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Riverside County Transportation Commission
Notes to Basic Financial Statements
June 30, 2023
Note 12. Post -employment Benefits Other Than Pensions (OPEB), Continued
Changes in the NetOPEB Liability(Asset)-The changes in the net OPEB liability(asset)from the measurement
date of June 30, 2021 to June 30, 2022 are as follows:
Increase Decrease
Total OPEB Liability (Asset) Plan Fiduciary Net Position Net OPEB Liability (Asset)
Balances atJune 30, 2021 (measurement date)
Changes for the year:
Service cost
Interest
Assumption changes
Contributions - employer
Experience
Net investment income
Benefit payments
Administrative expense
Net changes
Balances atJune 30, 2022 (measurement date)
$ 8,738,200
$ 11,335,200
(2,597,000)
641,500 - 641,500
482,900 - 482,900
150,300 - 150,300
- 884,100 (884,100)
(366,400)
908,300
$9,646,500
(1,500,000) 1,500,000
(366,400) -
(1,800) 1,800
(984,100) 1,892,400
$ 10,351,100 $ (704,600)
Sensitivity of the net OPEB liability to changes in the discount rate - The following table presents the
Commission's net OPEB liability (asset), as well as what the Commission's net OPEB liability would be if it
were calculated using a discount rate that is 1% below or 1% higher than the current discount rate:
Changes in the Discount Rate
1% Decrease
NetOPEB Liability
Current Discount Rate
Net OPEB Asset
1% Increase
Net OPEB Asset
4.25%
$724,500
5.25%
($704,600)
6.25%
($1,865,300)
Sensitivity of the net OPEB liability (asset) to changes in the healthcare cost trend rates -The following table
presents the net OPEB liability (asset) as well as what the Commission's net OPEB liability would be if it were
calculated using healthcare cost trend rates that are 1% below or 1% higher than the current healthcare cost
trend rates:
Changes in the Healthcare Cost Trend Rate
1% Decrease
Net OPEB Asset
Current Healthcare Trend Rate
Net OPEB LAsset
1% Increase
Net OPEB Liability
1% Decrease
($2,085,300)
Cu rrent Trend
($704,600)
1% Increase
$1,029,700
OPEB plan fiduciary net position - Detailed information about the OPEB plan's fiduciary net position is
available in the separately issued CERBT financial reports at https://www.calpers.ca.gov/page/employers/
benefit-programs/cerbt.
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Riverside County Transportation Commission
Notes to Basic Financial Statements
June 30, 2023
Note 12. Post -employment Benefits Other Than Pensions (OPEB), Continued
OPEB expense and deferred outflows of resources and deferred inflows of resources related to OPEB - For
the year ended June 30, 2022, the Commission recognized OPEB expense/(income) of $717,400. At June
30, 2023 the Commission reported deferred outflows of resources and deferred inflows of resources related
to OPEB from the following sources.
Deferred Outflows of Resources Deferred Inflows of Resources
Contributions subsequent to measurement date
Changes in assumptions
Differences between actual and expected experiences
Net differences between projected and actual earnings on plan investments
Tota I
961,600
181,600
907,900
$ 2 051,100
88,900
439,800
$ 528.700
The $961,600 reported as deferred outflows of resources related to contributions subsequent to the
measurement date will be recognized as a reduction of the net OPEB liability in the subsequent fiscal year.
Amounts reported as deferred outflows of resources and deferred inflows of resources related to OPEB will
be recognized in OPEB expense as follows:
Year Ending June 30
2024
2025
2026
2027
2028
Thereafter
$
71,700
96,900
88,000
368,300
(38,400)
(25,700)
$ 560,800
Payable to the OPEB Plan - At June 30, 2023 the Commission reported a payable of $0 for the outstanding
amount of contributions to CERBT required for the year ended June 30, 2023.
Note 13. Measure A Conformance Requirements
Measure A requires that the sales taxes collected may only be used for transportation purposes including
administration and the construction, capital acquisition, maintenance, and operation of streets, roads,
highways including state highways, and public transit systems and for related purposes. These purposes
include expenditures for planning, environmental reviews, engineering and design costs, and related right
of way acquisition.
Note 14. Adoption of GASB Statement No. 96, Subscription -Based Information Technology Arrangements
As of July 1, 2022, the Commission adopted GASB Statement No. 96, Subscription -Based Information
TechnologyArrangements.The implementation of this standard establishesthat a subscription ITarrangement
results in a right to use subscription IT asset - an intangible asset, and a corresponding liability. The standard
provides the capitalization criteria for outlays other than subscription payments, including implementation
costs of subscription IT arrangements. The Statement required recognition of certain subscription IT assets
and liabilities for subscription IT that previously were recognized as outflows of resources based on the
payment provisions of the contract. As a result of implementing this standard, the Commission recognized
a right to use subscription IT asset and subscription IT liability of $1,125,117 and $1,125,117, respectively
within governmental activities as of July 1, 2022. As a result of these adjustments there was no effect on
beginning net position. The additional disclosures required by this standard are included in Notes 5 and 7.
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126
Riverside County Transportation Commission
Notes to Basic Financial Statements
June 30, 2023
Note 15. Pronouncements Issued, Not Yet Effective
The GASB pronouncements issued prior to June 30, 2023 that have an effective date that may impact future
financial presentations include:
• GASB Statement No. 99, Omnibus 2022 (The requirements related to financial guarantees and the
classification and reporting derivative instruments within the scope of Statement 53 are effective for
fiscal years beginning after June 15, 2023, and all reporting periods thereafter).
• GASB Statement No. 100, Accounting Changes and Error Corrections, effective for fiscal years
beginning after June 15, 2023; and
• GASB Statement No. 101, Compensated Absences, effective for fiscal year beginning after December
15, 2023
83
127
RIVERSIDE
COUNTY
TRANSPORTATION
COMMISSION
128
Riverside County Transportation Commission
Schedule of Revenues, Expenditures and Changes in Fund Balance
Budget and Actual - General Fund
Year Ended June 30, 2023
General
Revenues
Intergovernmental
Investmentincome(loss)
Other
Total revenues
Expenditures
Current:
General government
Commuterrail
Planning and programming
Transitand specialized transportation
Total programs
Debtservice:
Principal
Interest
Total debtservice
Capital outlay
Total expenditures
Excess (deficiency) of revenues over(u n der)
expenditures
Otherfinancing sources (uses)
Transfers in
Transfers out
Total otherfinancing sources (uses)
Net change in fund balances
Fund balances at beginning of year
Fund balances at end of year
Original
Budget
Final
Budget
Actual
Variance with
Final Budget
Positive
(Negative)
22,610,600 $
36,400
22,610,600 $
36,400
5,225,498 $
725,357
1,718
5,952,573
(17,385,102)
688,957
1,718
(16,694,427)
22,647,000
12,406,600
44,997,700
2,740,800
1,590,100
22,647,000
11,594,200
44,113,200
5,999,000
1,592,000
30,738,018
3,972,025
911,442
11,594,200
13,375,182
2,026,975
680,558
27,676,915
61,735,200
63,298,400
788,000
48,600
35,621,485
787,736
48,534
264
66
3,343,900
836,600
3,363,900
836,270
101,042
330
3,262,858
65,079,100
67,498,900
36,558,797
30,940,103
(42,432,100)
44,979,600
(2,990,800)
41,988,800
(44,851,900)
44,979,600
(2,990,800)
41,988,800
(30,606,224)
31,925,738
(7,873)
31,917,865
14,245,676
(13,053,862)
2,982,927
(10,070,935)
(443,300) $
(2,863,100)
See notes to required supplementary information
1,311,641 $
35,788,510
37,100,151
4,174,741
86
130
Riverside County Transportation Commission
Schedule of Revenues, Expenditures and Changes in Fund Balance
Budget and Actual - Major Special Revenue Funds
Year Ended June 30, 2023
Revenues
Sal es taxes
Transportation Uniform Mitigation Fee
Intergovernmental
Investmentincome(loss)
Other
Total revenues
Expenditures
Current:
General government
Bicycleand pedestrian facilities
CETAP
Commuterassistance
Commuter rail
Highways
Local streets and roads
Planning and programming
Regional arterials
Transit and specialized transportation
Total programs
Debt service:
Principal
Interest
Total debtservice
Capital outlay
Total expenditures
Excess (deficiency)of revenues over(under)
expenditures
Otherfinancing sources(uses)
Transfers in
Transfers out
Total otherfinancing sources (uses)
Netchangeinfund balances
Fund balances at beginning of year
Fund balances at end of year
See notes to requi red supplementary information
Measure A Western County
Measure A Coachella Valley
Variance with Variance with
Final Budget Final Budget
Original Final Positive Original Final Positive
Budget Budget Actual (Negative) Budget Budget Actual (Negative)
$ 204,086,000 $ 220,619,000 $ 230,590,476 $ 9,971,476 $ 49,894,000 $ 53,252,000 $ 55,658,839 $ 2,406,839
119,201,300 120,007,500 61,730,536 (58,276,964) 67,300 67,300 (67,300)
349,700 349,700 7,059,918 6,710,218 1,958,771 1,958,771
589,000 589,000 3,530,551 2,941,551 -
324,226,000 341,565,200 302,911,481 (38,653,719) 49,961,300 53,319,300 57,617,610 4,298,310
565,900 565,900 336,045 229,855
4,385,400
29,061,400
139,812,900
58,774,300
24,494,300
8,422,500
265,516,700 268,261,500 187,020,853 81,240,647 58,159,700 61,183,700 45,891,265 15,292,435
4,362,700
29,511,300
134,825,300
66,386,700
4,030,094 332,606 - - - -
19,310,998 10,200,302
85,048,360 49,776,940 30,009,400 30,985,700 15,327,959 15,657,741
66,569,274 (182,574) 17,250,300 19,298,000 19,480,594 (182,594)
24,183,300 4,626,056 19,557,244
8,426,300 7,100,026 1,326,274 10,900,000 10,900,000 11,082,712 (182,712)
22,400
600
22,361
559
39
41
2,848,500
23,000
22,920
80
6,586,400 4,763,984 1,822,416
268,365,200 274,870,900 191,807,757 83,063,143 58,159,700 61,183,700 45,891,265 15,292,435
55,860,800 66,694,300 111,103,724 44,409,424 (8,198,400) (7,864,400) 11,726,345 19,590,745
30,799,100 31,899,100 15,103,584 (16,795,516)
(93,595,200) (93,595,200) (67,493,371) 26,101,829
(62,796,100) (61,696,100) (52,389,787) 9,306,313
140,418 140,418
(428,100) (428,100) - 428,100
(428,100) (428,100) 140,418 568,518
$ (6,935,300) $ 4,998,200 58,713,937 $ 53,715,737 $ (8,626,500) $ (8,292,500) 11,866,763 $ 20,159,263
379,440,191 84,343,540
$ 438,154,128
$ 96,210,303
87
131
Riverside County Transportation Commission
Schedule of Revenues, Expenditures and Changes in Fund Balance
Budget and Actual - Major Special Revenue Funds, Continued
Year Ended June 30, 2023
Revenues
Sales taxes
Transportation Uniform Mitigation Fee
Intergovernmental
Investment income(loss)
Other
Total revenues
Expenditures
Current:
General government
Bicycleand pedestrian facilities
CETAP
Co mm uterassistance
Commuter rail
Highways
Local streets and roads
Planning and programming
Regional arterials
Transit and specialized transportation
Total programs
Debtservice:
Principal
Interest
Total debtservice
Capital outlay
Total expenditures
Excess (deficiency) of revenues over(under)
expenditures
Otherfinancing sou rces (uses)
Transfers in
Transfers out
Total otherfinancing sources (uses)
Netchangeinfund balances
Fund balances at beginning ofyear
Fund balances at end ofyear
See notesto required supplementary information
Transportation Uniform Mitigation Fee
Original
Budget
Final
Budget
Variance with
Final Budget
Positive
Actual (Negative)
$ $
31,000,000 31,000,000
359,600 359,600
107,600 107,600
18,000 18,000
Local Transportation Fund
Original
Budget
Final
Budget
Variance with
Final Budget
Positive
Actual (Negative)
- $ - $ 130,000,000 $ 150,000,000 $ 156,282,435 $ 6,282,435
34,416,894 3,416,894 - - - -
(359,600) 240,100 240,100 15,438,482 15,198,382
2,860,762 2,753,162 5,616,669 5,616,669
22,916 4,916
31,485,200 31,485,200 37,300,572 5,815,372 130,240,100 150,240,100 177,337,586 27,097,486
3,854,700 4,207,600 1,011,752 3,195,848
18,392,300 15,383,400 3,466,066 11,917,334
12,000
12,000
12,000
1,600,000 1,600,000 2,578,177 (978,177)
1,415,000 1,415,000 1,415,000
101,613,000 102,053,000 85,870,179 16,182,821
22,247,000 19,591,000 4,477,818 15,113,182 104,640,000 105,080,000 89,875,356 15,204,644
22,247,000 19,591,000 4,477,818 15,113,182 104,640,000 105,080,000 89,875,356 15,204,644
9,238,200 11,894,200 32,822,754 20,928,554 25,600,100 45,160,100 87,462,230 42,302,130
273,600 273,600 70,362 (203,238)
(29,180,100) (29,180,100) (3,974,572) 25,205,528
(28,906,500) (28,906,500) (3,904,210) 25,002,290
(26,313,800) (28,072,800) (27,740,200) 332,600
(26,313,800) (28,072,800) (27,740,200) 332,600
$ (19,668,300) $ (17,012,300) 28,918,544 $ 45,930,844 $ (713,700) $ 17,087,300 59,722,030 $ 42,634,730
119,352,193
$ 148,270,737
276,854,895
$ 336,576,925
88
132
Riverside County Transportation Commission
Schedule of Revenues, Expenditures and Changes in Fund Balance
Budget and Actual - Major Special Revenue Funds, Continued
Year Ended June 30, 2023
State Transit Assistance SB 132
Variance with Variance with
Final Budget Final Budget
Original Final Positive Original Final Positive
Budget Budget Actual (Negative) Budget Budget Actual (Negative)
Revenues
Sal es taxes $ 26,585,600 $ 26,585,600 $ 37,244,079 $ 10,658,479 $ - $ - $ $
Transportation Uniform Mitigation Fee
Intergovernmental 84,486,900 84,486,900 99,942,971 15,456,071
Investmentincome(loss) 120,100 120,100 2,874,905 2,754,805 - - 1,003,838 1,003,838
Other - 5,125 5,125 963,200 963,200
Total revenues 26,705,700 26,705,700 40,124,109 13,418,409 84,486,900 84,486,900 101,910,009 17,423,109
Expenditures
Current:
General government
Bicycleand pedestrian facilities
CETAP
Co m muter assistance
Commuter rail
Highways - - - - 182,000,300 172,300,300 154,469,677 17,830,623
Local streets and roads - - - -
Planningandprogramming - - - Regional arterials - - - -
Transitandspecializedtransportation 36,736,100 36,736,100 25,904,190 10,831,910
Total programs 36,736,100 36,736,100 25,904,190 10,831,910 182,000,300 172,300,300 154,469,677 17,830,623
Debt service:
Principal
Interest
Total debtsend ce
Capital outlay
Total expenditures 36,736,100 36,736,100 25,904,190 10,831,910 182,000,300 172,300,300 154,469,677 17,830,623
Excess (deficiency) of revenues over(under)
expenditures (10,030,400) (10,030,400) 14,219,919 24,250,319 (97,513,400) (87,813,400) (52,559,668) 35,253,732
Otherfinancing sources (uses)
Transfers in
Transfers out
Total otherfinancing sources (uses)
97,513,400 97,513,400 53,949,156 (43,564,244)
(4,033,900) (5,133,900) (3,716,784) 1,417,116 - -
(4,033,900) (5,133,900) (3,716,784) 1,417,116 97,513,400 97,513,400 53,949,156 (43,564,244)
Netchangeinfundbalances $ (14,064,300) $ (15,164,300) 10,503,135 $ 25,667,435 $ - $ 9,700,000 1,389,488 $ (8,310,512)
Fund balances at beginning of year 131,655,414 (385,823)
Fund balances at end of year $ 142,158,549 $ 1,003,665
See notesto required supplementary information
89
133
Riverside County Transportation Commission
Schedule of Proportionate Share of Net Pension Liability
Last Ten Fiscal Years'
June 30, 2023
Fiscal Year
2023 2022 2021 2020 2019 2018 2017 2016 2015'
Measurement Date
2022 2021 2020 2019 2018 2017 2016 2015 2014
Proportion ofthenetpension
liability/(asset) 0.03993% -0.11824% 0.00482% 0.08706% 0.08656% 0.08794% 0.08829% 0.09176% 0.08559%
Pro po rtio nates h are ofth e net
pension liability/(asset) $ 1,868,313 $ (6,394,605) $ 524,003 $ 8,921,123 $ 8,340,905 $ 8,721,456 $ 7,639,639 $ 6,298,052 $ 5,325,565
Covered payroll (measurement
year) $ 9,301,613 $ 7,470,675 $ 6,327,777 $ 5,870,876 $ 5,653,205 $ 5,536,781 $ 5,287,151 $ 4,792,270 $ 4,316,567
Pro po rtio nates h are ofth e net
pension liability/(asset)as
percentageof covered payroll 20.09% -85.60% 8.28% 151.96% 147.54% 157.52% 144.49% 131.42% 123.38%
Plan fiduciary net position asa
percentageofthetotal pension
liability/(asset) 84.58% 88.29% 75.10% 75.26% 75.26% 73.31% 74.06% 78.40% 78.21%
See notes to req u i red supplementary information
"Fiscal year2015was thefirstyearofimplementation. Represents most recent data available.
90
134
Riverside County Transportation Commission
Schedule of Pension Contributions
Last Ten Fiscal Yeats
June 30, 2023
Fiscal Year
Contractuallyrequired contribution
(actuarially determined)
Contributions in relation to the
actuarially determined contributions
Contribution deficiency(excess)
Covered payroll
Contributions as a percentageof covered
payroll
Valuation date
Actuarial cost method
Amortizations method
Remaining amortization period
Assetvaluation method
Inflation
Projected salary increases
Discount rate
Retirement age
Mortality
2023 2022 2021
2020
2019
2018
2017
2016
20151
$ $ 2 $1,525,557 $ 1,675,734 $1,507,484 $1,321,564 $ 1,222,802 $ 1,101,641 $1,044,018
(1,304,460) (1,203,364) (925,486) (10,221,550) 2 (1,443,593) (1,308,877) (1,238,891) (1,132,393) (1,125,317)
$(1,304,460) $ (1,203,364) $ 600,071 $(8,545,816) $ 63,891 $ 12,687 $ (16,089) $ (30,752) $ (81,299)
$ 9,934,449 $ 9,301,613 $7,470,675 $ 6,327,777 $5,870,876 $5,653,205 $ 5,536,781 $ 5,287,151 $4,792,270
13.13% 12.94% 12.39% 161.53% 24.59% 23.15% 22.38% 21.42% 23.48%
6/30/20 6/30/19 6/30/18 6/30/17 6/30/16 6/30/15 6/30/14 6/30/13 6/30/12
Entryagenormal cost method
Level of percentag eof payroll
20 years as of valuation date
15 yearsmoothed market
2.30%
Varies byentryageand service
6.90%(netofadministrativeexpenses)
55 years
Derived using CalPERSmembership dataforall funds
See notes torequired supplementary information
'Fiscal year2015was thefirstyearofimplementation. Represents most recentdata available.
21n FY2019/20theCommission paid offtheCaliforniaPublic Employees' RetirementSystem net pension liability of$8.1 million, resulting in $0 required actuarially determined contribution beginning
in FY2021/22.
91
135
Riverside County Transportation Commission
Schedule of Changes in the Net OPEB Liability (Asset) and Related Ratios
Last Ten Fiscal Years'
June 30, 2023
Fiscal Year
2023 2022 2021 2020 2019 2018 2017'
Measurementdate 2022 2021 2020 2019 2018 2017 2016
Total OPEB liability(asset)
Servicecost $ 641,500 $ 421,100 $ 408,900 $ 477,000 $ 463,000 $ 449,000 $ 437,000
Interest 482,900 496,000 470,500 462,000 416,000 377,000 338,000
Changes of benefitterms 150,300 80,000 74,000
Differences between expected and actual experience (388,000) - (338,000) -
Changesofassumptions 161,400 (148,300) 137,000
Benefit payments (366,400) (315,700) (282,700) (229,000) (192,000) (172,000) (155,000)
Netchangein total OPEBliability(asset) 908,300 374,800 448,400 589,000 761,000 654,000 620,000
Beginning total OPEB liability(asset) 8,738,200 8,363,400 7,915,000 7,326,000 6,565,000 5,911,000 5,291,000
Ending total OPEB liability(asset) $ 9,646,500 $ 8,738,200 $ 8,363,400 $ 7,915,000 $ 7,326,000 $ 6,565,000 $ 5,911,000
Plan fiduciarynetposition
Employer contributions $ 884,100 $ 728,300 $ 448,000 $ 778,000 $ 725,000 $ 666,000 $ 634,000
Netinvesmentincome (1,500,000) 1,825,700 452,700 577,000 522,000 597,000 86,000
Benefit payments (366,400) (315,700) (282,700) (229,000) (192,000) (172,000) (155,000)
Ad ministrativeexpense (1,800) (5,700) (5,400) (2,000) (12,000) (3,000) (2,000)
Netchangeinplanfiduciarynetposition (984,100) 2,232,600 612,600 1,124,000 1,043,000 1,088,000 563,000
Beginning fiduciary net position 11,335,200 9,102,600 8,490,000 7,366,000 6,323,000 5,235,000 4,672,000
Ending fiduciary net position $10,351,100 $11,335,200 $ 9,102,600 $ 8,490,000 $ 7,366,000 $ 6,323,000 $ 5,235,000
Ending netOPEBliability(asset)
Plan fiduciary net position as a percentageofthetotal OPEB
liability(asset)
$ (704,600) $ (2,597,000) $ (739,200) $ (575,000) $ (40,000) $ 242,000 $ 676,000
107.30% 129.72% 108.84% 107.26% 100.55% 96.31% 88.56%
Coveredpayroll(measurementyear) $ 9,301,613 $ 7,470,675 $ 6,327,777 $ 5,870,876 $ 5,653,205 $ 5,536,781 $ 5,287,151
Net OPEB liability(asset)as a percentageof covered payroll -7.58% -34.76% -11.68% -9.79% -0.71% 4.37% 12.79%
Seenotes torequiredsupplementaryinformation
'Fiscalyear2017wasthefirstyearofimplementation. Represents most recent data available.
92
136
Riverside County Transportation Commission
Schedule of OPEB Contributions
Last Ten Fiscal Years'
June 30, 2023
Fisca I Yea r
2023 2022 2021 2020 2019 2018 20171
Actuariallydetermined contribution $ 533,000 $ 517,000 $ 412,000 $ 399,000 $ 549,000 $ 533,000 $ 494,000
Contributions in relation to theactuariallydetermined contribution 961,600 884,100 728,300 448,000 778,000 725,000 666,000
Contribution deficiency(excess)
$ (428,600) $ (367,100) $ (316,300) $ (49,000) $ (229,000) $ (192,000) $ (172,000)
Covered payroll $9,934,449 $9,301,613 $7,470,675 $6,327,777 $5,870,876 $5,653,205 $5,536,781
Contributions as a percentage of covered -employee payro II
Valuation date:
Actuariallydetermined contribution rates arecalculated as ofJune30,threeyears priorto theend ofthefiscalyearin which contributions are reported.
9.68% 9.50% 9.75% 7.08% 13.25%
Methods and assumptions used to determinecontribution rates:
Actuarial cost method Entryage normal - level percentageof payroll
Amortization method Level percentag a of payroll
Amortization period Ten years
Assetvaluation method Investmentgains and losses spread overfive-year rolling period
Discount rate 5.25%
Inflation 2.75%
Healthcarecosttrend rates Non -Medicare: 7.0%for2022, decreasing to an ultimaterateof4.0%in 2076 and lateryears
Medicare: 6.3%for2021, decreasing to an ultimate rateof4.0%in 2076 and lateryears
Salary increases 3.00%aggregate
Investment rate of return 5.25%
Reti rement ag e
Classic employees: 50-55
Public Employees' Pension Reform Act: 52-62
Mortality Mortality projected fully generational with Scale MP -2020
Seenotes to req uired supplementary information
'Fiscal year2017was thefirstyearofimplementation. Represents most recentdata available.
12.82% 12.03%
93
137
RIVERSIDE
COUNTY
TRANSPORTATION
COMMISSION
94
138
Riverside County Transportation Commission
Notes to Required Supplementary Information
June 30, 2023
Budgetary Data
In February of each year, department heads begin the process of compiling budget data for the upcoming
fiscal year. Budget numbers along with supporting documentation are provided to the Chief Financial
Officer by March 15. That budget data is compiled and presented to the Executive Director for review and
approval and is submitted to the Budget and Implementation Committee at its April meeting. After review
by the Budget and Implementation Committee, the proposed budget is scheduled for preliminary review
and comment as well as public hearing at the Commission's May meeting. The final budget for the new fiscal
year is then adopted by motion of the Board of Commissioners (Board) no later than June 15 of the current
year. This appropriated budget covers substantially all Commission expenditures by financial responsibility
unit [e.g., General fund and Measure A (for each of the three county areas), Local Transportation Fund, and
Transportation Uniform Mitigation Fee special revenue funds] by fund. All appropriated amounts are as
originally adopted or as amended by the Commission. Unexpended appropriations lapse at year-end. All
budgets are adopted on a basis consistent with generally accepted accounting principles.
As adopted by the Board, expenditure activities of the funds with adopted budgets are controlled at the
budgetary unit, which is the financial responsibility level, for each function (i.e., administration, programs,
intergovernmental distributions, and capital outlay). These functions provide the legal level of budgetary
control (i.e., the level at which expenditures cannot legally exceed the appropriated amount). Management
has the discretion to transfer the budgeted amounts within the financial responsibility unit according to
function. Supplemental budget appropriations were necessary during the year.
Pension Plan
Schedule of Proportionate Share of Net Pension Liability - The schedule provides the proportion
(percentage) of the collective net pension liability (asset), proportionate share (amount) of the collective
net pension liability (asset), the Commission's covered payroll, proportionate share (amount) of the
collective net pension liability (asset) as a percentage of Commission's covered payroll, and the pension
plan's fiduciary net position as a percentage of the total pension liability (asset).
Schedule of Pension Contributions - The schedule provides the Commission's actuarially determined
contributions to the pension plan, the Commission's actual contributions, the difference between the
actual and actuarially determined contributions, and a ratio of the actual contributions divided by
covered payroll.
Postemployment Benefits Other Than Pensions
Schedule of Changes in the Net OPEB Liability (Asset) and Related Ratios - The schedule provides the
schedule of changes in the net OPEB liability (asset), the plan fiduciary net position as a percentage of
the total OPEB liability (asset), the Commission's covered payroll, and the net OPEB liability (asset) as a
percentage of covered payroll.
Schedule of OPEB Contributions - The schedule provides the Commission's actuarially determined
contributions to the OPEB plan, the Commission's actual contributions, the difference between the
actual and actuarially determined contributions, and a ratio of the actual contributions divided by
covered payroll.
95
139
RIVERSIDE
COUNTY
TRANSPORTATION
COMMISSION
140
RIVERSIDE
COUNTY
TRANSPORTATION
COMMISSION
142
Riverside County Transportation Commission
Nonmajor Governmental Funds Description
Special Revenue Funds
Measure A Palo Verde Valley: This fund is used to account for the revenues from sales taxes which are
restricted to expenditures for Palo Verde Valley programs and activities.
Freeway Service Patrol: This fund is used to record the revenues received from state funds for the
purpose of implementing a freeway service patrol for motorists.
Service Authority for Freeway Emergencies: This fund is used to record the revenues received from
Department of Motor Vehicle user registration fees for the purpose of implementing an emergency call
box system for motorists.
State of Good Repair: This fund is used to account for revenues from sales taxes on gasoline and vehicle
fee revenues restricted for transit projects.
Coachella Valley Rail: This fund is used to account for revenues from state funds for the planning and
development of the new Coachella Valley/San Gorgonio Pass corridor rail service.
Other Agency Projects: This fund is used to account for revenues from the Riverside County Regional
Park and Open Space District for the interagency cooperative planning and development of projects in
the County.
Regional Conservation: This fund is used to account for revenues related to management and oversight
services provided to the RCA.
99
143
Riverside County Transportation Commission
Combining Balance Sheet - NonmajorGovemmental Funds
June 30, 2023
Special Revenue
Service
Measure A Freeway Authority State of
Palo Verde Service for Freeway Good
Valley Patrol Emergencies Repair
Assets
Cash and investments $ $ 7,062,278 $ 4,275,088 $ 11,746,919
Receivables:
Accounts 207,308 1,948,875 388,564 1,041,273
Interest 89,854 93,490 190,250
Duefrom otherfunds -
Prepaid expenditures and otherassets
Total assets $ 207,308 $ 9,101,007 $ 4,757,142 $ 12,978,442
Liabilities and fund balances
Liabilities:
Accounts payable $ 193,808 $ 398,484 $ 49,889 $ 281,106
Duetootherfunds 13,500 61,475 6,356 35,700
Otherliabilities -
Total liabilities 207,308 459,959 56,245 316,806
Deferred inflows of resources
Unavaialblerevenues
Total deferred inflows of resources
Fund balances:
Nonspendable-prepaid amounts
Restricted fo r:
13,245
13,245
Comm uterrail - -
Motoristassistance - 8,627,803 4,700,897
Planning and programming
Transitand specialized transportation - 12,661,636
Unassigned: - - -
Total fund balances 8,627,803 4,700,897 12,661,636
Totalliabilitiesandfundbalances $ 207,308 $ 9,101,007 $ 4,757,142 $ 12,978,442
100
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Riverside County Transportation Commission
Combining Balance Sheet- Nonmajor Govemmental Funds, Continued
June 30, 2023
Special Revenue
Total
Coachella Nonmajor
Valley Other Regional Governmental
Rail Agency Projects Conservation Funds
Assets
Cash and investments
Receivables:
Accounts
Interest
Duefrom otherfunds
Prepaid expenditures and otherassets
Total assets
1,955,980 $ 509,422 $ 1,308,851 $ 26,858,538
810,000
32,565 8,974
283,330 -
1,553,643 5,949,663
15,583 430,716
283,330
1,030 1,030
$ 2,271,875 $ 1,328,396 $ 2,879,107 $ 33,523,277
Liabilities and fund balances
Liabilities:
Accounts payable $ 9,077 $ 470,437 $ 644,992 $ 2,047,793
Duetootherfunds 5,408 5,844 510,860 639,143
0therliabilities 823,941 1,725,617 2,549,558
Total liabilities 14,485 1,300,222 2,881,469 5,236,494
Deferred inflows of resources
Unavaialblerevenues
Total deferred inflows of resources
13,245
Fund balances:
Nonspendable-prepaid amounts
Restricted for:
Commuterrail
Motoristassistance
Planning and programming
Transitand specialized transportation
Unassigned:
Total fund balances
Total liabilities and fund balances
2,257,390
28,174
1,030
(3,392)
13,245
1,030
2,257,390
13,328,700
28,174
12,661,636
(3,392)
2,257,390 28,174
(2,362) 28,273,538
$ 2,271,875 $ 1,328,396 $ 2,879,107 $ 33,523,277
101
145
Riverside County Transportation Commission
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances
NonmajorGovemmental Funds
Year Ended June 30, 2023
Special Revenue
Service
Measure A Freeway Authority State of
Palo Verde Service for Freeway Good
Valley Patrol Emergencies Repair
Revenues
Sales taxes
Intergovernmental
Investm ent in co me (loss)
Total revenues
Expenditures
Current:
$ 1,179,447
2,999,818
117,409
2,185,474
161,071
4,364,613
312,610
264,047
1,179,447 3,117,227
Commuter rail -
Local streets and roads 1,179,447
2,346,545 4,941,270
Motoristassistance - 4,233,896 273,619
Planning and programming
Regional conservation
Transitand specialized transportation 3,554,081
Total expenditures 1,179,447 4,233,896 273,619 3,554,081
Excess (deficiency) of revenues over(under)
expenditures - (1,116,669) 2,072,926 1,387,189
Otherfinancing sources (uses):
Transfers in - 2,800,000
Transfers out - (2,855,000)
Total otherfinancing sources (uses) - 2,800,000 (2,855,000)
Netchangein fund balances - 1,683,331 (782,074) 1,387,189
Fund balances at beginning ofyear - 6,944,472 5,482,971 11,274,447
Fund balances atend of year $ - $ 8,627,803 $ 4,700,897 $ 12,661,636
102
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Riverside County Transportation Commission
Combining Statement of Revenues, Expenditures, and Changes in Fund
Nonmajor Governmental Funds, Continued
Year Ended June 30, 2023
Special Revenue
Total
Coachella Other Nonmajor
Valley Agency Regional Governmental
Rail Projects Conservation Funds
Revenues
Sales taxes $ - $ $ - $ 5,544,060
Intergovernmental 1,901,477 8,474,565 15,873,944
Investment into me(loss) 57,047 16,796 3,423 619,793
Total revenues 57,047 1,918,273 8,477,988 22,037,797
Expenditures
Current:
Commuterrail 283,331 - - 283,331
Local streets and roads - - 1,179,447
Motoristassistance - - 4,507,515
Planning and programming - 1,901,795 - 1,901,795
Regional conservation - 8,476,417 8,476,417
Transitand specialized transportation - 3,554,081
Total expenditures 283,331 1,901,795 8,476,417 19,902,586
Excess (deficiency)of revenues over(under)
expenditures (226,284) 16,478 1,571 2,135,211
Otherfinancing sou rces (uses):
Transfers in
Transfers out
Total otherfi nancing sources (uses)
283,330
3,083,330
(2,855,000)
283,330 - - 228,330
Netchangein fund balances 57,046 16,478 1,571 2,363,541
Fund balances at beginning ofyear 2,200,344 11,696 (3,933) 25,909,997
Fundbalancesatendofyear $ 2,257,390 $ 28,174 $ (2,362) $ 28,273,538
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Riverside County Transportation Commission
Schedule of Revenues, Expenditures and Changes in Fund Balances
Budget and Actual—Nonmajor Special Revenue Funds
Year Ended June 30, 2023
Measure A Palo Verde Valley Freeway Service Patrol
Variance with Variance with
Final Budget Final Budget
Original Final Positive Original Final Positive
Budget Budget Actual (Negative) Budget Budget Actual (Negative)
Revenues
Sales taxes $ 1,220,000 $ 1,129,000 $ 1,179,447 $ 50,447 $ - $ - $ - $
Intergovernmental 3,200,000 3,200,000 2,999,818 (200,182)
Investmentincome(loss) 6,200 6,200 117,409 111,209
Total revenues 1,220,000 1,129,000 1,179,447 50,447 3,206,200 3,206,200 3,117,227 (88,973)
Expenditures
Current:
Commuter rail - - - -
Localstreetsandroads 1,077,300 1,136,400 1,179,447 (43,047)
Motoristassistance - - 5,692,400 5,706,900 4,233,896 1,473,004
Planning and programming - - - - - Regional conservation - - - - - - -
Transitandspecializedtransportation - - - - - Total programs 1,077,300 1,136,400 1,179,447 (43,047) 5,692,400 5,706,900 4,233,896 1,473,004
Excess (deficiency)of revenues over(under)
expenditures
142,700 (7,400) 7,400 (2,486,200) (2,500,700) (1,116,669) 1,384,031
Otherfinancing sources(uses)
Transfers in - 2,800,000 2,800,000 2,800,000
Transfers out (142,700) (142,700) - 142,700 (217,900) (217,900) 217,900
Totalotherfinancingsources(uses) 1,220,000 (142,700) - 142,700 2,582,100 2,582,100 2,800,000 217,900
Netchangein fund balances
$ 1,362,700 $ (150,100) $ 150,100 $ 95,900 $ 81,400 1,683,331 $ 1,601,931
Fund balances at beginning of year - 6,944,472
Fund balancesatend of year $ - $ 8,627,803
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Riverside County Transportation Commission
Schedule of Revenues, Expenditures and Changes in Fund Balances
Budget and Actual—Nonmajor Special Revenue Funds, Continued
Year Ended June 30, 2023
Service Authority for Freeway Emergencies State of Good Repair
Variance with Variance with
Final Budget Final Budget
Original Final Positive Original Final Positive
Budget Budget Actual (Negative) Budget Budget Actual (Negative)
Revenues
Sales taxes $ - $ - $ - $ - $ 4,379,000 $ 4,379,000 $ 4,364,613 $ (14,387)
Intergovernmental 2,100,000 2,100,000 2,185,474 85,474 372,200 372,200 312,610 (59,590)
Investment income(loss) 3,500 3,500 161,071 157,571 12,000 12,000 264,047 252,047
Total revenues 2,103,500 2,103,500 2,346,545 243,045 4,763,200 4,763,200 4,941,270 178,070
Expenditures
Current:
Commuterrail - - - - - - -
Localstreetsandroads - - - - - -
Motoristassistance 412,300 410,900 273,619 137,281 - - - -
Planning and programming - - - - -
Regional conservation - - - -
Transitandspecializedtransportation - - 5,029,200 5,029,200 3,554,081 1,475,119
Total programs 412,300 410,900 273,619 137,281 5,029,200 5,029,200 3,554,081 1,475,119
Excess (deficiency)of revenues over(under)
expenditures
1,691,200 1,692,600 2,072,926 380,326 (266,000) (266,000) 1,387,189 1,653,189
Otherfinancing sources(uses)
Transfers in Transfers out (3,214,300) (3,214,300) (2,855,000) 359,300 (142,700) (142,700) - 142,700
Totalotherfinancingsources(uses) (3,214,300) (3,214,300) (2,855,000) 359,300 (142,700) (142,700) - 142,700
Netchangeinfund balances
$ (1,523,100) $ (1,521,700) (782,074) $ 739,626 $ (408,700) $ (408,700) 1,387,189 $ 1,795,889
Fund balances at beginning of year 5,482,971 11,274,447
Fund balances atend of year $ 4,700,897 $ 12,661,636
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Riverside County Transportation Commission
Schedule of Revenues, Expenditures and Changes in Fund Balances
Budget and Actual-Nonmajor Special Revenue Funds, Continued
Year Ended June 30, 2023
Coachella Valley Rail Other Agency Projects
Variance with Variance with
Final Budget Final Budget
Original Final Positive Original Final Positive
Budget Budget Actual (Negative) Budget Budget Actual (Negative)
Revenues
Sales taxes
Intergovernmental
Investmentincome(loss)
Total revenues
- S - $ - $ $ - $ - $ $
2,370,800 2,370,800 1,901,477 (469,323)
900 900 57,047 56,147 16,796 16,796
900 900 57,047 56,147 2,370,800 2,370,800 1,918,273 (452,527)
Expenditures
Current:
Commuterrail 499,600 499,600 283,331 216,269 - - -
Localstreetsandroads - - - - -
Motoristassistance - -
Planningandprogramming - - - - 2,370,800 2,720,800 1,901,795 819,005
Regional conservation - - - - -
Transitand specialized transportation -
Total programs 499,600 499,600 283,331 216,269 2,370,800 2,720,800 1,901,795 819,005
Excess (deficiency)of revenues over(under)
expenditures (498,700) (498,700) (226,284) 272,416
Otherfinancing sources(uses)
Transfers in 441,200 441,200 283,330 (157,870)
Transfers out (85,300) (85,300) 85,300
Totalotherfinancingsources(uses) 355,900 355,900 283,330 (72,570)
Netchangeinfund balances
(350,000) 16,478 366,478
$ (142,800) $ (142,800) 57,046 $ 199,846 $ $ (350,000) 16,478 $ 366,478
Fund balances at beginning of year 2,200,344 11,696
Fund balances atend of year $ 2,257,390 $ 28,174
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Riverside County Transportation Commission
Schedule of Revenues, Expenditures and Changes in Fund Balances
Budget and Actual—Nonmajor Special Revenue Funds, Continued
Year Ended June 30, 2023
Regional Conservation
Variance with
Final Budget
Original Final Positive
Budget Budget Actual (Negative)
Revenues
Sales taxes $ - $ - $ - $
Intergovernmental 10,353,700 9,194,500 8,474,565 (719,935)
Investmentincome(loss) - - 3,423 3,423
Total revenues 10,353,700 9,194,500 8,477,988 (716,512)
Expenditures
Current:
Commuterrail - -
Localstreetsandroads - - - -
Motoristassistance - - -
Planning and programming
Regional conservation 10,799,100 9,641,700 8,476,417 1,165,283
Transitand specialized transportation
Total programs 10,799,100 9,641,700 8,476,417 1,165,283
Excess (deficiency) of revenues over(under)
expenditures
(445,400) (447,200) 1,571 448,771
Otherfinancing sources(uses)
Transfers in - - Transfers out (1,869,400) (1,869,400) - 1,869,400
Total otherfinancing sources (uses) (1,869,400) (1,869,400) - 1,869,400
Netchangeinfund balances
$ (2,314,800) $ (2,316,600) 1,571 $ 2,318,171
Fund balances at beginning of year (3,933)
Fund balancesatend of year $ (2,362)
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Riverside County Transportation Commission
Schedule of Revenues, Expenditures and Changes in Fund Balances
Budget and Actual —Capital Projects Funds
Year Ended June 30, 2023
Capital Projects Funds
Commercial Paper Bonds
Variance with Variance with
Final Budget Final Budget
Original Final Positive Original Final Positive
Budget Budget Actual (Negative) Budget Budget Actual (Negative)
Revenues
Intergovernmental
Investment i nco me(loss)
Other
Total revenues
- $ - $ - $ $ - $ - $ - $
17,800 17,800 971,537 953,737 23,900 23,900 805,556 781,656
17,800 17,800
971,537 953,737
23,900 23,900
805,556 781,656
Expenditures
Debtservice:
Principal - - - - - - -
Interest - - - - - - Total expenditures - - - - - - -
Excess (deficiency) of revenues over(under)
expenditures 17,800 17,800 971,537 953,737 23,900 23,900 805,556 781,656
Otherfinancing sources (uses)
Transfers in - Transfers out - (2,622,091) (2,622,091) (3,036,900) (3,036,900) (8,232,435) (5,195,535)
Totalotherfinancingsources(uses) (2,622,091) (2,622,091) (3,036,900) (3,036,900) (8,232,435) (5,195,535)
Netchangein fund balances $ 17,800 $ 17,800 (1,650,554) $ (1,668,354) $ (3,013,000) $ (3,013,000) (7,426,879) $ (4,413,879)
Fund balances at beginning of year 15,043,286 25,576,707
Fundbalancesatendofyear $ 13,392,732 $ 18,149,828
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Riverside County Transportation Commission
Schedule of Revenues, Expenditures and Changes in Fund Balances
Budget and Actual —Debt Service Fund
Year Ended June 30, 2023
Debt Service Fund
Variance with
Final Budget
Original Final Positive
Budget Budget Actual (Negative)
Revenues
Intergovernmental $ 2,812,100 $ 2,812,100 $ 2,812,132 $ 32
Investmentincome(loss) 11,500 11,500 973,150 961,650
Other
Total revenues 2,823,600 2,823,600 3,785,282 961,682
Expenditures
Debt service:
Principal 31,405,000 31,405,000 31,405,000
Interest 38,150,300 38,150,300 38,150,288 12
Total expenditures 69,555,300 69,555,300 69,555,288 12
Excess (deficiency) of revenues over(under)
expenditures (66,731,700) (66,731,700) (65,770,006) 961,694
Otherfinanci ng sources (uses)
Transfers in 69,555,300 69,555,300 69,526,935 (28,365)
Transfers out (2,812,100) (2,812,100) (2,952,550) (140,450)
Total otherfinancing sources (uses) 66,743,200 66,743,200 66,574,385 (168,815)
Netchangein fund balances
Fund balances at beginning ofyear
Fund balances atend ofyear
$ 11,500 $ 11,500 804,379 $ 792,879
11,067,296
$ 11,871,675
109
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Riverside County Transportation Commission
Schedule of Expenditures for Local Streets and Roads
by Geographic Area - All Special Revenue Funds
Year Ended June 30, 2023
Western County:
Cityof Banning $ 914,578
Cityof Beaumont 764,669
CityofCalimesa 323,492
Cityof Canyon Lake 294,400
Cityof Corona 5,769,916
City ofEastvale 3,417,628
City of Hemet 2,901,824
CityofJurupaValley 3,463,400
CityofLakeElsinore 2,378,785
Cityof Menifee 3,119,910
Cityof Moreno Valley 6,639,058
Cityof Murrieta 3,740,275
Cityof Norco 1,002,380
Cityof Perris 2,958,085
Cityof Riverside 11,110,303
Cityof San Jacinto 1,540,966
CityofTemecula 4,517,458
CityofWildomar 1,026,180
RiversideCounty 9,356,364
WRCOG(60%shareofcityofBeaumont) 1,147,004
Other 182,600
66,569,274
CoachellaValley:
Cityof Cathedral City 2,101,271
Cityof Coachella 827,136
City of DesertHotSprings 734,443
Cityof Indian Wells 296,540
Cityof Indio 2,652,397
Cityof LaQuinta 2,036,267
Cityof Palm Desert 3,562,513
Cityof Palm Springs 3,274,168
Cityof Rancho Mirage 1,216,269
RiversideCounty 2,596,990
Other 182,600
19,480,594
Palo VerdeValley:
City of Blythe 880,063
RiversideCounty 256,284
Other 43,100
1,179,447
Total local streets and roads expenditures $ 87,229,315
110
154
Riverside County Transportation Commission
Schedule of Expenditures for Transit and Specialized Transportation
by Geographic Area and Source - All Special Revenue Funds
Year Ended June 30, 2023
Sales Taxes
MeasureA
Local State State
Transportation Transit of Good
Fund Assistance Repair
Total
Western County:
Boys and Girls Club ofMenifeeValley $ 127,223 $ $ $ $ 127,223
Boys and Girls Club of SouthwestCounty 151,463 - - - 151,463
Care -A -Van 263,927 - 263,927
CareConnexxus 230,589 230,589
City of Banning 1,866,500 114,516 24,903 2,005,919
City of Beaumont 140,000 2,449,617 473,828 60,000 3,123,445
City of Corona 1,456,060 (574) 25,880 1,481,366
City ofMenifee 2,500 2,500
City of Norco 90,293 90,293
City of Riverside 4,797,327 206,685 5,091 5,009,103
Exceed 127,197 127,197
Friends of Moreno Val ley Center, Inc 123,636 - 123,636
ForestFolk 55,942 - - 55,942
Independent Living Partnership 374,309 - - - 374,309
Michelle's Place 10,052 - - 10,052
OperationSafehouse 37,826 - - - 37,826
Riverside UniversityHealth Systems 720,780 - 720,780
RiversideTransitAgency 4,000,000 49,796,652 23,710,608 2,895,554 80,402,814
United States Veterans Initiative 51,126 51,126
VoicesforChildren 141,618 141,618
Other 451,545 182,600 153,534 426,909 1,214,588
7,100,026
60,548,756 24,658,597
3,438,337 95,745,716
CoachellaValley:
Sun LineTransitAgency 10,900,000 24,585,854 1,219,985 102,929 36,808,768
Other 182,712 182,712
Palo VerdeValley:
Palo VerdeValleyTransitAgency
11,082,712
24,585,854 1,219,985
735,569 25,608
102,929 36,991,480
12,815 773,992
735,569 25,608
12,815 773,992
Total transitand specialized transportation expenditures $ 18,182,738 $ 85,870,179 $ 25,904,190 $ 3,554,081 $ 133,511,188
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Riverside County Transportation Commission
Schedule of Uses of Debt Proceeds and Fund Balances
Year Ended June 30, 2023
Capital Projects
Commercial Paper Notes Sales Tax Revenue Bonds
1-15 Express Lanes, advance 1-15 Express Lanes, 91 Project,
agreements, and other
advance agreements, and other Total
Revenues
Investmentincome $ 971,537 $ 805,556 $ 1,777,093
Total revenues 971,537 805,556 1,777,093
Otherfinancing sou rces (uses)
Transfers out
Debtserviceoffset (2,622,091) (410,055) (3,032,146)
Accumulated interestearned on TIFIA debtservice reserve (981) (981)
Requisitions to reimburseCommission funds
Salaries and benefits - (49,489) (49,489)
Professional services - (163,063) (163,063)
Supportservices - (23,265) (23,265)
Program operations - (73,882) (73,882)
Construction - (6,963,249) (6,963,249)
Design -build (548,451) (548,451)
Total otherfinancing sources(uses) (2,622,091) (8,232,435) (10,854,526)
Netchangein fund balance (1,650,554) (7,426,879) (9,077,433)
Fund balances at beginning ofyear 15,043,286 25,576,707 40,619,993
Fund balances atend of year $ 13,392,732 $ 18,149,828 $ 31,542,560
112
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Riverside County Transportation Commission
Statistical Section Overview
This part of the Riverside County Transportation Commission's annual comprehensive financial report
presents detailed information as a context for understanding what the information in the financial
statements, note disclosures, and required supplementary information says about the Commission's
overall financial health.
Financial Trends: These schedules contain trend information to help the reader understand how the
government's financial performance and well-being have changed over time. The schedules include:
Net Position By Component
Changes in Net Position
Fund Balances of Governmental Funds
Changes in Fund Balances of Governmental Funds
Revenue Capacity: These schedules contain information to help the reader assess the government's
most significant local revenue source, the Measure A sales tax. These schedules include:
Sources of County of Riverside Taxable Sales by Business Type
Direct and Overlapping Sales Tax Rates
Principal Taxable Sales Generation by City
Measure A Sales Tax Revenues by Program and Geographic Area
Measure A Sales Tax by Economic Category
Debt Capacity: These schedules present information to help the reader assess the affordability of the
government's current levels of outstanding debt and the government's ability to issue additional debt
in the future. These schedules include:
Pledged Revenue Coverage
Ratios of Outstanding Debt by Type
Computation of Legal Debt Margin
Demographic and Economic Information: These schedules offer demographic and economic
indicators to help the reader understand the environment within which the government's financial
activities take place. These schedules include:
Demographic and Economic Statistics for the County of Riverside
Employment Statistics by Industry for the County of Riverside
Operating Information: These schedules contain service and infrastructure data to help the reader
understand how the information in the government's financial report relates to the services the
government provides and the activities it performs. These schedules include:
Full-time Equivalent Employees by Function/Program
Operating Indicators
Capital Asset Statistics by Program
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Riverside County Transportation Commission
Primary Government Net Position by Component
Last Ten Fiscal Years
(Accrual Basis)
Fiscal Year
2023 2022 2021 2020 2019
Governmental activities:
Netlnvestmentincapital assets $ 483,304,687 $ 415,495,777 $ 353,189,808 $ 552,756,477 $ 706,935,587
Restricted 1,285,771,161 1,115,074,082 977,192,934 816,331,290 794,875,222
Unrestricted(deficit) (510,152,633) (540,884,718) (593,657,822) (652,278,554) (887,668,580)
Total governmental activities net position $ 1,258,923,215 $ 989,685,141 ' $ 736,724,920 $ 716,809,213 6 $ 614,142,229
Business-typeactivities:
Netlnvestment(deficit)incapitalassets $ (176,735,962) $ (171,650,350) $ (109,184,608) 6 $ (320,213,988) $ (299,852,425)
Restricted 106,301,690 130,780,244 54,919,608 43,981,932 25,256,125
Unrestricted (deficit)
Totalbusiness-typeactivitiesnetposition(deficit) $ (70,434,272) $ (40,870,106)' $ (54,265,000) 5'6 $ (276,232,056) $ (274,596,300)
Source: FinanceDepartment
1 Net investment in capital assets increased in 2014 primarily as a result of construction related to the Perris Valley Lineproject.
2 In FY2015, theCo mmissio n implemented GASB Statement No. 68, Accounting and Financial Reporting for Pensions, and GASB Statement No. 71, Pension Transition for Contributions
MadeSubsequenttotheMeasurementDate-AnAmendmentofGASBStatementNo. 68. Prioryearamounts in this presentation havenotbeen revised to reflectthis change.
3 In FY2017, theCommission reached substantial completion on the9l Project and in March 2017 theRCTC91 Express Lanes opened to motorists.
4 In FY2018, theCommission changed its presentation ofnetposition related to intangibleassets.
5 In FY2021, theCo mmissio n reached substantial completion on the 1-15 Express Lanes project and in April 2021 the 15 Express Lanes opened to motorists.
6 Calculation of Net Investment in Capital Assets and Unrestricted (Deficit)was restated based on FY2021 calculation; prioryearamounts in this presentation havenotbeen revised to
reflectthis change.
In FY2022,theCommission implemented GASBStatementNo. 87, Leases. Prioryearamounts in this presentation havenotbeen revised to reflectthis change.
Business -type Activities Net Position by Component
$200,000,000
$150300,000
$100,000,000
$50,000,030
$(50,000,000)
$(100,000,000)
$(150,000,000)
$(200,000,000)
$(250,000,000)
$(300,000,000)
$(350,000,000)
1
2021
2020
2019
2018
2017
B Restricted
Net Investment (defiat) i n
capital assets
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Riverside County Transportation Commission
Primary Government Net Position by Component, Continued
Last Ten Fiscal Years
(Accmal Basis)
Fiscal Year
2018 2017 2016 2015 2014
Governmental activities:
Netlnvestmentincapitalassets $ 529,178,100 $ 377,309,766 $ 389,646,370
Restricted 801,401,752 596,214,012 615,457,192
Unrestricted (deficit) (857,485,575) (538,356,445) (668,395,594)
Total governmental activities net position $ 473,094,277 $ 435,167,333 $ 336,707,968
Business-typeactivities:
Net I nvestment(deficit) in capital assets $ (286,349,191) $ (301,737,495)
Restricted 8,581,857 ° 242,134,144
Unrestricted (deficit) ° (234,075,489)
Total business-typeactivities net position(deficit) $ (277,767,334) $ (293,678,840)'
■ Unrestricted (deficit)
■ Restricted
Netlnvestmentin
capita I assets
$2,000,000,000
509,106,481 $ 381,796,683 1
578,207,942 642,385,244
(623,769,876) (470,327,554)
463,544,547 2 $ 553,854,373
Govemmental Activities Net Position by Component
$1,500,000,000
$1,000,000,000 M I
$500,000,000
$(500,000,000) -
$(1,000,000,000)
$(1,500,000,000)
1
2023 2022 2f171 2020 2019 2017
1
2014
11
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Riverside County Transportation Commission
Changes in Primary Government Net Position
LastTen Fiscal Years
(Accrual Basis)
Fiscal YearEndedJune30
2023 2022 2021
2
2020 2019
Expenses
Governmental activities:
General government $ 3,381,001 $ (2,868,799) $ 1,127,083 $ (1,488,917) $ 1,295,384
Bicydeandpedestrianprojects 2,578,177 1,587,819 3,388,814 1,367,800 2,319,895
CETAP 1,046,199 5,181,055 5,723,685 1,441,976 1,398,238
Commuter assistance 4,187,763 3,229,524 3,110,681 3,673,416 3,612,855
Commuter rail 58,899,642 34,291,250 37,367,041 50,573,511 48,553,459
Highways 177,171,636 159,525,490 122,407,790 134,815,656 91,086,623
Local streets and roads 87,229,315 85,183,610 74,082,952 59,474,660 61,470,359
Motorist assistance 4,606,991 4,322,295 4,498,883 4,818,036 4,403,671
Planning and programming 8,099,856 4,774,012 3,730,032 7,798,197 4,340,660
Regional arterials 8,157,544 24,258,688 30,985,584 11,918,666 17,048,413
Regional conservation 10,243,763 1,492,799 1,832,340 -
Transit andsped alized transportation 134,722,572 85,415,249 50,535,684 99,413,296 117,766,548
Interest expense 29,443,644 30,512,904 35,080,824 34,633,146 33,663,673
Total governmental activitiesexpenses 529,768,103 436,905,896 373,871,393 408,439,443 386,959,778
Business -type activities:
RCfC91Express lanes 73,232,775 69,463,323 56,311,332 59,962,158 55,039,168
15 Ex press lanes 29,329,925 27,233,103 5,540,819 - -
Total primary government expenses
Program Revenues
Governmental activities:
Chargesforservices
CETAP $ - $ 5,313 $ - $ - $ -
Commuter assistance
Commuter rail 314,628 250,000 249,825 251,084 155,587
Highways 137,555 81,503 95,002 132,681
Motorist assistance - 35,980
PI a nni ng a nd programming - -
Other 15 8 133 326
Operating grantsand contributions 81,558,262 179,656,964 154,817,759 125,725,762 93,084,805
Capital grantsand contributions 158,239,283 71,849,461 71,536,414 44,793,683 74,558,439
Total governmental activities program revenues 240,112,188 251,899,293 226,685,509 170,865,664 167,967,818
Business -type activities:
Chargesforservices
RCfC91 Ex press lanes 73,335,918 65,119,434 46,302,018 56,440,369 58,423,461
15 Ex press lanes 39,371,149 37,259,442 5,544,148
Operating grantsand contri butions - - -
Totalbusiness-typeactivitiesprogramrevenues 112,707,067 102,378,876 51,846,166 56,440,369 58,423,461
Total primary government revenues 352,819,255 354,278,169 278,531,675 227,306,033 226,391,279
$ 632, 330, 803 $ 533, 602, 322 $ 435, 723, 544 $ 468,401,601 $ 441, 998, 946
Net Revenues (Expenses)
Governmental activities (289,655,915)
Business -type activities 10,144,367
Total primary government net expense $ (279,511,548)
(185,006,603) (147,185,884) (237,573,779) (218,991,960)
5,682,450 (10,005,985) (3,521,789) 3,384,293
(179,324,153) $ (157,191,869) $ (241,095,568) $ (215,607,667)
General Revenues and0therChanges in Net Position
Governmental activities:
MeasureAsalestaxes $ 287,428,762 $ 280,170,582 $ 242,943,840 $ 195,036,321 $ 201,204,995
Transportation Development Act salestaxes 197,891,127 180,682,280 146,615,629 128,080,154 131, 021, 230
Unrestricted investment earnings(loss) 25,402,156 (14,295,090) 2,326,345 14,537,908 21,130,957
Other miscel laneous revenue 2,477,425 2,574,199 5,765,473 574,705 3,261,873
lease f i nand ng
Gain on sale of capital assets 443,461
Transfers 45,694,519 (11,165,147) (230,548,696) 2,010,675 2,977,396
Total governmental activities 558,893,989 437,966,824 167,102,591 340,239,763 360,039,912
Business -type activities:
Unrestricted investment ea rni ngs(loss) 5,985,986 (3,452,703) 324,156 3,896,708 2,764,137
Other miscel laneous revenue
Gain on sale of capital assets 1,100,189
Transfers (45,694,519) 11,165,147 230,548,696 (2,010,675) (2,977,396)
Total business -type activities (39,708,533) 7,712,444 231,973,041 1,886,033 (213,259)
Total primary government $ 519,185,456 $ 445,679,268 $ 399,075,632 $ 342,125,796 $ 359,826,653
Changes in Net Position
Governmental activities $ 269,238,074 $ 252,960,221 $ 19,916,707 $ 102,665,984 $ 141,047,952
Business -type activities (29,564,166) 13,394,894 221,967,056 (1,635,756) 3,171,034
Total primary government $ 239,673,908 $ 266,355,115 $ 241,883,763 $ 101,030,228 $ 144,218,986
Source: Finance Department
1 In FY 2022 the Commission implemented GASBStatement No. 87, Leases. Prior year a mounts i n thi s presentati on have not been revi sed to reflect thischange.
2 In FY 2021 the Commission reached substantial completion onthe 15 Express lanes project and i n Apri I 2021 the 15 Express Lanesopened to motorists. Additionally, the Commission became the managing agency
for the Western Riverside County Regional ConservationAuthority.
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RiversideCountyTransportation Commission
Changes in PdmaryGovemmentNet Position, Continued
LastTen Fiscal Years
(Accrual Basis)
Fiscal YearEnded June30
2018 2017
3
2016
2015
4
2014
Expenses
Governmental activities:
General government $ 3,654,628 $ 7,258,051 $ 6,614,285 $ 7,402,725 $ 6,994,832
Bicycle and pedestrian projects 1,142,306 1,314,932 212,547 1,747,090 1,065,476
CETAP 22,285,913 2,489,440 1,871,426 4,130,374 2,195,074
Commuter assistance 3,668,307 2,658,782 2,615,610 2,914,990 3,171,842
Commuter rail 36,578,920 38,964,217 41,449,269 20,455,178 17,255,402
Highways 79,234,802 264,283,974 245,668,543 228,857,938 339,194,681
Local streets and roads 53,639,698 51,864,011 49,826,564 48,615,708 46,677,580
Motorist assistance 3,835,612 4,164,892 4,149,320 4,314,601 3,498,420
Planning and programming 4,758,503 3,141,759 3,965,071 3,064,115 3,216,441
Regional arterials 12,897,557 19,040,012 23,095,562 21,010,980 23,886,840
Regional conservation -
Transitandspecializedtransportation 90,185,227 80,724,591 70,611,967 86,712,958 78,723,898
Interest expense 46,421,211 49,214,579 53,558,472 50,037,270 52,939,762
Total governmental activitiesexpenses 358,302,684 525,119,240 503,638,636 479,263,927 578,820,248
Business -type activities:
RCTC91 Expresslanes 49,452,297 13,260,254 - - -
15 Ex press la nes - -
Totalprimarygovernmentexpenses $ 407,754,981 $ 538,379,494 $ 503,638,636 $ 479,263,927 $ 578,820,248
Program R even u es
Governmental activities:
Chargestorservices
CETAPCommuter assistance
Commuter rail 254,627 250,416
Highways 51,629
Motorist assistance 4,149 635,373
Other 479 447
Operating grants a nd contri butions 45,363,624 35,611,287
Capital grantsand contributions 66,910,285 16,451,903
Total governmental activities program revenues 112,584,793 52,949,426
Business -type activities:
Chargesforservices
RCTC 91 Ex press La nes 50,446, 824 10,123, 572
15 Ex press la nes Operating grantsand contributions - 1,723
Capital grantsand contributions -
Total busi ness-type activities program revenues 50,446,824 10,125,295
Total primary government revenues 163,031,617 63,074,721
255,847 786,869 297,911
90,655 412,535
1,076,751 21,307 15,026
421 450 999
42, 568, 860 57, 784, 238 61, 767, 456
54, 062, 314 70,133,121 71, 744, 926
97, 964,193
97, 964,193
128, 816, 640 134, 238, 853
128, 816, 640 134, 238, 853
Net Revenues (Expenses)
Governmental activities (245,717,891) (472,169,814) (405,674,443) (350,447,287) (444,581,395)
Busi ness-type activities 994,527 (3,134,959) - - -
Totalprimarygovernmentnetexpense $ (244,723,364) $ (475,304,773) $ (405,674,443) $ (350,447,287) $ (444,581,395)
General Revenues andOtherChanges in Net Position
Governmental activities:
MeasureAsalestaxes $ 176,301,656 $ 175,320,207 $ 167,630,239 $ 163,092,776 $ 156,355,894
Transportation Development Act sal estaxes 110,878,557 94,639,514 97,134,594 94,816,814 91,953,554
Unrestricted investment earnings 8,916,321 4,262,323 8,383,732 6,060,400 9,794,662
Other miscellaneous revenue 2,497,942 5,859,819 4,950,964 1,643,078 556,049
Lease tinancing -
Gainonsaleofrapitalassets 738,335 - 14,574
Transfers (14,949,641) 290,547,316 - -
Total governmental activities 283,644,835 570,629,179 278,837,864 265,613,068 258,674,733
Business -type activities:
Unrestrictedinvestmentearnings (32,662) 3,435 - - -
Othermiscellaneousrevenue - - -
Gainonsaleofrapital assets - - -
Transfers 14,949,641 (290,547,316) - - -
Total business -type activities 14,916,979 (290,543,881)
Total primary government $ 298,561,814 $ 280,085,298 $ 278,837,864 $ 265,613,068 $ 258,674,733
Changes in Net Position
Governmental activities $ 37,926,944 $ 98,459,365 $ (126,836,579) $ (84,834,219) $ (185,906,662)
Busi ness-type activities 15,911,506 (293,678,840) - - -
Totalprimarygovernment $ 53,838,450 $ (195,219,475) $ (126,836,579) $ (84,834,219) $ (185,906,662)
Source: Finance Department
3 In FY 2017 the Commission reached substantial completion onthe 91 Project and in March 2017 the RCTC91 Expresstanesopened to motorists. Additionally, the Commissionearly implemented GASBStatement
No. 75, Accounting andFinandal Reporting for Post -Employment Benef its Other Than Pensions, and GASBStatement No. 85, Omnibus2017.
4 1n FY 2015 the Commission implemented GASBStatement No. 68, Accounting and Fi nancial Reporting for Pensions, and GASBStatement No. 71, Pension Transition for Contri buti onsMade Subsequent to the
Measurement Date- An Amendment ofGASBStatement No.68. Prioryearamountsinthispresentationhavenotbeenrevisedtoreflectthischange.
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Riverside County Transportation Commission
Changes in Primary Govemment Net Position (Continued)
Last Ten Fiscal Years
(Accrual Basis)
$698,500,00 0
$598,500,000
Expenses by Function
$498,500,000 —
$398,500,000
$298,500,00 0
■
$198,500,000 II
—
1 • � I
98 5 00 000 11-11■ ■ ■ I ■ ■ ■ I I
$(1,5 00,000)
202 3 202 2 2021 202 0 2019 2018 2017 2016 2015 2014
Bicyde and pedestrian facilities
CETAP
• Commuter assista nce
Commuter rail
Highways
• Local streets and roads
Motorist assMa nce
• Planning and programming
Regional arterials
• Regional conservation
▪ Transit and specialized transportation
• Toll operations
• Interest expense
118
163
Changes in Primary Government Net Position (Continued)
Last Ten Fiscal Years
(Accrual Basis)
Revenues by Source
$882,000,000
$782,000,000
$682,000,000
$582,000,000
$482 ,000,00 0
$382 ,000,00 0
$282 ,000,00 0
$182,000,000
$82,000,000
$(18,000,000)
202 3
202 2
2021
202 0
2019
2018
2017
2016
2015
2014
■ Chargesforservices
■ Operating g rants a nd contributions
■ Capital grants a nd contributions
• Measure Asales taxes
▪ Transportation Development Act sales taxes
■ Unrestricted investment ea rnings (lass)
Other miscella nexus revenue
■ Lease financing
▪ Gain onsale of capital assets, net
119
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Riverside County Transportation Commission
Fund Balances of Governmental Funds
Last Ten Fiscal Years
(Modified Accrual Basis)
Fiscal Year
2023 2022 2021 2020 2019
GENERAL FUND
General fund:
Nonspendable $ 541,973 $ 479,416 $ 164,621 $ 136,038 $ 345,881
Restricted 33,989,895 32,259,329 34,147,160 22,458,450 25,551,922
Assigned 2,568,283 3,049,765 3,606,250 3,267,803 3,226,466
Total general fund $ 37,100,151 $ 35,788,510 $ 37,918,031 $ 25,862,291 $ 29,124,269
ALL OTHER GOVERNMENTAL FUNDS
All othergovernmental funds:
Nonspendable $ 1,335,606 $ 3,168,147 $ 3,393,790 $ 3,033,953 $ 3,675,091
Restricted 1,232,729,866 1,066,079,305 927,622,993 781,460,503 758,687,069
Unassigned (3,392) (389,756) (143,114) (30,566) (1,272,356)
Total allothergovernmentalfunds $ 1,234,062,080 $ 1,068,857,696 $ 930,873,669 $ 784,463,890 $ 761,089,804
Source: FinanceDepartment
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Riverside County Transportation Commission
Fund Balances of Govemmental Funds, Continued
Last Ten Fiscal Years
(Modified Accrual Basis)
Fiscal Year
2018 2017 2016 2015 2014
GENERAL FUND
General fund:
Nonspendable $ 232,793 $ 232,759 $ 192,235 $ 255,446 $ 257,721
Restricted 22,470,358 16,321,159 7,143,844 5,680,411 5,073,685
Assigned 3,337,343 2,572,182 3,456,111 4,246,940 5,258,703
Total general fund $ 26,040,494 $ 19,126,100 $ 10,792,190 $ 10,182,797 $ 10,590,109
AL, OTHER GOVERNMENTAL FU N DS
All other governmental funds:
Nonspendable $ 4,627,240 $ 9,162,068 $ 10,848,614 $ 21,510,571 $ 31,978,235
Restricted 745,638,560 678,147,954 718,780,598 772,109,076 988,908,077
Unassigned (268,754) (23,054)
Total allothergovernmentalfunds $ 749,997,046 $ 687,286,968 $ 729,629,212 $ 793,619,647 $ 1,020,886,312
Source: Finance Department
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Riverside County Transportation Commission
Changes in Fund Balances of Governmental Funds
Last Ten Fiscal Years
(Modified Accrual Basis)
Fiscal Year
2023 2022
2021 2020 2019
Revenues
Sales taxes $ 485,319,889 $ 460,852,862 $ 389,559,469 $ 323,116,475 $ 332,226,225
Transportation Uniform Mitigation Fee 34,416,894 35,509,031 28,301,547 23,257,905 29,968,449
Intergovernmental 201,023,563 213,808,004 203,029,590 145,904,252 138,541,133
Investment income 25,470,256 (14,230,774) 2,387,089 14,594,910 21,311,968
Other 4,523,510 3,274,412 5,863,647 2,283,994 6,418,190
Total revenues 750,754,112 699,213,535 629,141,342 509,157,536 528,465,965
Expenditures
Current:
General Government 348,045 341,937 410,552 546,338 1,044,403
Programs:
Bicycleandpedestrianfacilities 2,578,177 1,587,819 3,388,814 1,367,800 2,319,895
CETAP 1,011,752 5,279,295 2,016,814 11,104,808 1,394,120
Commuterassistance 4,030,094 3,434,404 3,071,831 3,938,474 3,603,353
Commuterrail 50,332,347 21,219,827 29,379,805 41,069,694 40,805,316
Highways 254,845,996 247,656,937 197,817,830 285,955,203 203,662,390
Local streets and roads 87,229,315 85,183,610 74,082,952 59,475,694 61,470,359
Motoristassistance 4,507,515 4,474,970 4,486,182 4,934,056 4,398,842
Planning and programming 7,288,820 5,702,031 3,640,958 8,828,203 4,307,859
Regional arterials 8,092,122 24,379,344 30,972,795 12,059,400 17,042,375
Regional conservation 8,476,417 3,974,222 1,721,498 - -
Transitandspecializedtransportation 134,422,630 85,924,817 50,489,119 99,777,205 117,748,091
Debt service:
Principal 32,215,097 30,573,211 28,505,099 27,253,683 25,977,461
Interest 38,199,381 39,649,974 41,255,647 42,511,371 43,595,769
Costoflssuance - - -
Paymentto escrow agent
Capital outlay 4,865,026 5,950,413 4,750,342 3,536,042 5,663,109
Total expenditures 638,442,734 565,332,811 475,990,238 602,357,971 533,033,342
Excess (deficiency) of revenues
over (under) expenditures 112,311,378 133,880,724 153,151,104 (93,200,435) (4,567,377)
Dther financing sources (uses):
Refunding debt issuance
Debt issuance - - 15,660,996 111,301,868 14,946,136
Discount on debtissuance
Premium on debt issuance
Paymentto refunded bond escrow agent - 55,000
Transfers in 173,799,523 115,432,568 116,427,274 119,642,321 116,363,248
Transfers out (119,594,876) (113,458,786) (126,773,855) (117,631,646) (112,620,474)
Total otherfinancing sou rces (uses) 54,204,647 1,973,782 5,314,415 113,312,543 18,743,910
Net change in fund balances
$ 166,516,025 $ 135,854,506 $ 158,465,519 $ 20,112,108 $ 14,176,533
Debt service as a percentage of
noncapital expenditures 12.8% 14.8% 17.7% 15.8% 16.7%
Source: Finance Department
1 Debtserviceas a percentageof no ncapital expenditures in 2014 increased sig nificantly as a result of theretirement of $60,000,000 of commercial paper, which is included in principal
payments and interest payments and cost of issuanceasa result ofthe issuanceof$638,854,602 in debt.
2 Debtserviceas a percentageof no ncapital expenditures in 2018 increased significantlyas a result of the retirement of commercial paperand a current refunding of debt, which included a
swap termination payment.
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Riverside County Transportation Commission
Changes in Fund Balances of Governmental Funds, Continued
Last Ten Fiscal Years
(Modified Accrual Basis)
Fiscal Year
2018 2017 2016 2015 2014
Revenues
Sal es taxes $ 287,180,213 $ 269,959,721 $ 264,764,833 $ 257,909,590 $ 248,309,448
Transportation Uniform Mitigation Fee 23,699,764 19,594,829 19,831,327 17,400,782 11,284,394
Intergovernmental 88,207,011 32,467,616 76,821,362 110,515,661 122,486,605
Investment income 9,149,672 4,483,174 8,592,753 6,258,226 9,979,912
Other 3,199,483 6,746,055 7,295,648 2,542,359 1,282,520
Total revenues 411,436,143 333,251,395 377,305,923 394,626,618 393,342,879
Expenditures
Current:
General Government 977,898 6,558,752 6,514,255 7,302,325 6,991,303
Programs:
Bicycleand pedestrian facilities 1,142,306 1,314,932 233,815 1,747,090 1,065,476
CETAP 22,275,429 4,028,104 5,249,516 4,135,996 6,509,915
Commuterassistance 3,647,662 2,686,073 2,648,632 2,891,431 3,136,150
Commuter rail 37,700,157 32,820,139 95,717,909 112,424,851 68,072,414
Highways 187,087,621 250,383,800 372,657,029 325,128,109 299,398,122
Local streets and roads 53,639,698 51,864,011 49,826,564 48,615,815 46,677,580
Motorist assistance 3,825,722 4,177,349 4,159,520 4,317,961 3,498,420
Planning and programming 4,677,940 3,248,031 4,090,731 3,099,358 3,204,073
Regional arterials 12,888,439 19,056,339 23,111,109 21,016,097 23,886,840
Regional conservation
Transit and specialized transportation 90,153,923 80,764,125 70,652,804 86,725,394 78,723,898
Debtservice:
Principal 62,140,974 27,317,242 7,814,176 7,411,654 67,112,884
Interest 50,606,912 44,684,153 45,620,922 45,913,275 43,410,203
Costoflssuance 2,256,061 654,007 7,050,855
Paymentto escrow agent 70,800,000 63,900,000
Capital outlay 2,606,851 5,670,356 1,182,208 475,334 143,888
Total expenditures 606,427,593 599,127,413 689,479,190 671,204,690 658,882,021
Excess (deficiency) of revenues
over (under) expenditures (194,991,450) (265,876,018) (312,173,267) (276,578,072) (265,539,142)
Other financing sources (uses):
Refunding debt issuance 457,015,000 Debt issuance 158,760,000 249,498,089 248,792,225 48,904,095 638,854,602
Discounton debt issuance - (2,433,315)
Premium on debt issuance 119,713,807 8,414,007 - - 38,328,775
Paymentto refunded bond escrow agent (471,089,840)
Transfers in 300,623,670 182,713,859 162,708,720 232,626,156 481,987,735
Transfers out (300,406,715) (208,758,271) (162,708,720) (232,626,156) (481,987,735)
Total otherfinancing sources (uses) 264,615,922 231,867,684 248,792,225 48,904,095 674,750,062
Net change in fund balances $ 69,624,472 $ (34,008,334) $ (63,381,042) $ (227,673,977) $ 409,210,920
Debt service as a percentage of
noncapital expenditures 23.7% 2
Source: Finance Department
12.2% 10.6% 11.0% 19.1% 1
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Riverside County Transportation Commission
Sources of County of Riverside Taxable Sales by Business Type
Last Ten Calendar Years (In Thousands)
Apparel stores
General merchandisestores
Food stores
Eating&drinking
Household
Building materials
Automotive
Otherretail sales
Total all otheroutlets
MeasureA directsalestaxrate(0rdinance88-1 through 2009 and
02-001 thereafter)
2022
$ 2,960,410
5,099,730
2,258,142
5,523,671
1,913,811
3,739,593
12,734,351
11,239,330
16,648,116
2021
$ 2,787,245
4,756,624
2,121,729
4,936,088
1,999,156
3,598,728
11,430,453
9,700,524
14,204,649
$ 62,117,154 $
0.50%
2020
1,834,633
4,123,079
1,953,653
3,615,577
2,106,383
3,103,094
8,509,066
5,076,176
11,991,812
2019 2018
$ 2,361,700 $ 2,315,433
3,967,112 3,560,755
1,822,075 1,790,507
4,282,201 4,004,657
2,104,126 1,962,650
2,500,049 2,346,508
8,938,497 8,788,907
3,087,294 3,273,276
11,563,944 10, 876,806
55,535,196 $ 42,313,473 $ 40,626,998 $ 38,919,499
0.50%
Source: California DepartmentofTaxand FeeAdministration, as successorto CalifomiaStateBoard of Equalization
1 Year represents most recentdata available.
Total all other
outlets
27%
Other retail sales
18%
0.50%
0.50%
Sources of County of Riverside Taxable Sales
by Business Type for 2022
Apparel stores
5%
General
merchandise
stores
8%
Food stores
4%
Eating & drinking
9%
0.50%
Household
3%
Building
materials
6%
Automotive
20%
124
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Riverside County Transportation Commission
Sources of County of Riverside Taxable Sales by Business Type, Continued
Last Ten Calendar Years (In Thousands)
2017 2016 2015 2014 2013
Apparel stores $ 2,199,511 $ 2,190,228 $ 2,136,728 $ 1,989,623 $ 1,771,603
Generalmerchandisestores 3,101,256 3,052,409 3,040,244 3,289,057 3,298,920
Food stores 1,666,910 1,574,030 1,727,518 1,509,404 1,421,590
Eating&drinking 3,852,674 3,648,980 3,384,494 3,093,861 2,836,388
Household 1,730,702 1,386,985 1,135,235 1,030,455 996,484
Building materials 2,161,593 1,965,101 1,826,294 1,706,184 1,535,178
Automotive 8,282,532 7,751,812 7,693,173 7,844,773 7,421,523
Otherretailsales 2,586,770 2,452,591 2,338,039 2,182,987 2,025,088
Total all otheroutlets 10,550,866 10,209,008 9,629,185 9,389,345 8,758,693
$ 36,132,814 $ 34,231,144 $ 32,910,910 $ 32,035,689 $ 30,065,467
MeasureAdirectsalestax rate(Ordinance
88-1 through 2009 and 02-001 thereafter)
0.50%
0.50% 0.50%
Source: California DepartmentofTaxand FeeAd ministration, as successo rto California State Board of Equalization
0.50% 0.50%
125
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Riverside County Transportation Commission
Direct and Overlapping Sales Tax Rates
Last Ten Fiscal Years
Fiscal Year
Measure A Direct Rate County of Riverside
2023 0.50% 7.75%
2022 0.50% 7.75%
2021 0.50% 7.75%
2020 0.50% 7.75%
2019 0.50% 7.75%
2018 0.50% 7.75%
2017 0.50% 7.75%
2016 0.50% 8.00%
2015 0.50% 8.00%
2014 0.50% 8.00%
Source: Commission FinanceDepartmentand California DepartmentofTaxand FeeAdministration, as successorto California State Board of
Equalization.
1TheMeasureA only with theapproval of 2/3 ofthevoters.
126
171
City of Riverside
City of Corona
City ofTemecula
City of Eastvale
City of Moreno Valley
City of Perris
City of Beaumont
City ofMurrieta
City of Palm Desert
City ofJurupaValley
City of Palm Springs
Cityoflndio
City of Hemet
City of LakeElsinore
City of Cathedral City
Cityof La Quinta
City ofMenifee
City of Norco
City of Rancho Mirage
City of Coachella
City of San Jacinto
City of Banning
City of Wilda mar
City of DesertHotSprings
City of Blythe
City ofCalimesa
City of Indian Wells
CityofCanyon Lake
Incorporated
Unincorporated
Countywide
California
Riverside County Transportation Commission
Principal Taxable Sales Generation by City
Current Year and Nine Years Ago
2022
2013
Taxable Sales (in thousands) Rank Percentage of Total Taxable Sales (in thousands) Rank Percentage of Total
S
7,765,721 2 7.0% $ 4,612,948 2 8.5%
4,847,882 3 4.4% 3,111,998 3 5.7%
4,264,227 4 3.8% 2,610,286 4 4.8%
3,996,374 5 3.6% 537,279 16 1.0%
3,207,163 6 2.9% 1,349,129 6 2.5%
2,479,214 7 2.2% 738,592 12 1.4%
2,472,075 8 2.2% 352,449 20 0.6%
2,305,656 9 2.1% 1,147,563 7 2.2%
2,268,188 10 2.0% 1,530,512 5 2.8%
1,943,397 11 1.8% 806,187 11 1.5%
1,797,000 12 1.6% 985,824 8 1.8%
1,504,857 13 1.4% 806,604 10 1.5%
1,500,683 14 1.4% 911,841 9 1.7%
1,338,536 15 1.1% 688,483 15 1.3%
1,190,322 16 1.1% 714,179 14 1.3%
1,088,208 17 1.0% 731,325 13 1.3%
1,073,446 18 1.0% 474,050 17 0.9%
963,898 19 0.9% 468,781 18 0.9%
627,021 20 0.6% 399,919 19 0.7%
470,421 21 0.4% 309,858 21 0.6%
412,702 22 0.4% 208,934 22 0.4%
317,280 23 0.3% 175,386 23 0.3%
266,301 24 0.2% 122,793 26 0.2%
206,004 25 0.2% 142,477 25 0.3%
169,867 26 0.2% 168,254 24 0.3%
143,270 27 0.1% 61,980 28 0.1%
139,373 28 0.1% 91,160 27 0.2%
33,525 29 0.0% 16,452 29 0.0%
48,792,611 44.0% 24,275,243 44.7%
62,117,153 1 56.0% 30,065,467 1 55.3%
110,909,762 100.0% $ 54,341,710 100.0%
$ 951,775,364
586,839,618
Source: California DepartmentofTaxand FeeAdministration, assuccessorto California State Board of Equalization, forthecalendaryearindicated.
1 Year represents most recentdata available.
Taxable Sales by City
$10,000,000
$8,000,000
$6,000,000
$4,000,000
$2,000,000
20221
-� 2013
$ r ��r ■ ■i■i■i■ice
k.
oti�,e.sa`°`\Ne'eJOa �izC, l\eo0°a��J,,\a\��e��a�a\\\�SQ�c„AC,\°a`°��¢��\�\°o,¢a�a` �J\ao�o°\e� °`°° \`a�L°�\a°a (60.k�c\S�a°moo Y`°�°0\\L\\�aa�e\off°sae
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Lc1 p°\ C �o ` � G ` ° `� °tiQ cz, oQa ` < o\a °l�r C?cl° � L�`�a�� `�°k °�S `�° `�k Se� `moo °�\o °\C,a
C. `moo
127
172
Riverside County Transportation Commission
Measure A Sales Tax Revenues by Program and Geographic Area
Year Ended June 30, 2023
Special Revenue Funds
Western Coachella Palo
County Valley Verde
Highways $ 70,000,680 $
Regional arterials 20,588,435
Highways and regional arterials New corridors 25,392,404
Economicdevelopmentincentives 2,745,125
Local streets and roads 66,569,274
Publictransit:
Commuter assistance 3,431,406
Commuter rail 14,000,136
Bus 3,500,034
Specialized transportation 5,833,390
Bus and specialized transportation
Bond financing 18,529,592
Source: Finance Department
$100,000,000
$90,000,000
$80,000,000
$70,000,000
$60,000,000
$50,000,000
$40,000,000
$30,000,000
$20,000,000
$10,000,000
Total
$ $ 70,000,680
20,588,435
27,829,419 - 27,829,419
25,392,404
2,745,125
19,480,594 1,179,447 87,229,315
8,348,826
3,431,406
14,000,136
3,500,034
5,833,390
8,348,826
18,529,592
$ 230,590,476 $ 55,658,839 $ 1,179,447 $ 287,428,762
Sales Tax Revenues by Program and Geographic Area
Arm a�e� a�e� `o<<� �Q°� c���2� 54S�a�& �e\ �o o�ap� a\o� oa�oc�
y� �� Sa sa tc` SQ X42 aka
Q . o• e 4e sec seeti J\c Low a .6 ��a moo
sa eA \ y . •b
2�'
r47" o� 4 (4 Sa a5Q
c0 00
Geographic Distribution by Area
Coachella Valley
19%
Palo Verde
1%
Western County
80%
• PaloVerde
• Coachella Valley
• Western County
128
173
Riverside County Transportation Commission
Measure A Sales Tax by Economic Category
Last Ten Calendar Years
% of Total
Economic Category 20221 2021 2020 2019 2018 2017 2016 2015 2014 2013
General retail 28.5 30.9 31.6 28.1 28.9 28.3 28.9 28.8 28.4 28.7
Transportation 24.3 24.0 22.4 24.2 24.6 25.3 25.1 25.9 26.6 27.0
Food products 16.2 15.8 15.2 17.7 17.8 17.6 17.7 17.3 16.6 16.1
Business to business 15.7 14.8 15.8 16.7 16.3 15.6 15.3 15.0 14.4 14.5
Construction 11.3 10.9 11.5 10.7 10.8 10.8 10.8 10.8 12.0 11.8
Miscellaneous 4.0 3.6 3.5 2.6 1.6 2.4 2.2 2.2 2.0 1.9
Total 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0
Source: MuniServices LLC., an Avenu Company
1 Yearrepresents most recentdata available.
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Riverside County Transportation Commission
Measure A Revenues and Pledged Revenue Coverage
Last Ten Fiscal Years
Sales Tax Revenue Bonds
Fiscal Year
Net Measure A Sales Tax
Revenues2
Measure A Sales Tax Revenue
Growth (Decline) Rate Total Debt Service
Total Debt Service
Coverage Ratio
2023 $ 287,428,762 2.59% $ 69,555,288 4.13
2022 280,170,582 15.32% 69,594,288 4.03
2021 242,943,840 24.56% 69,519,038 3.49
2020 195,036,321 -3.07% 3 69,537,488 2.80
2019 201,204,995 14.13% 69,555,738 2.89
2018 176,301,656 0.56% 75,159,543 2.35
2017 175,320,207 4.59% 51,889,982 3.38
2016 167,630,239 2.78% 53,400,019 3.14
2015 163,092, 776 4.31% 53,300,072 3.06
2014 156,355,894 4.64% 50,499,417 3.10
Source: Finance Department
1 This schedule meets therequirementsforContinuing Disclosureof historical MeasureA sales tax revenues.
2 Sales tax revenuebonds arebacked bythesales tax revenues, net of California Department ofTax and FeeAdministration, as successorto Board of
Equalization, administrativefees.
3 Sales tax revenues decreased in FY2020 duet° COVID-19 impacts.
130
175
RIVERSIDE
COUNTY
TRANSPORTATION
COMMISSION
131
176
Riverside County Transportation Commission
Ratios of Outstanding Debt by Type
Last Ten Fiscal Years
Governmental Activities
Year
Sales Tax Revenue Bonds, Lease and
net of premium and MSHCP Funding Subscription IT
discount Commercial Paper Liability Liabilities 2 Capital Leases TIFIA Loan
2023 $ 788,875,246 $ $ $ 3,713,036 $ $ -
2022 830,738,739 - - 3,398,016 - -
2021 871,561,216 - - 31,722
2020 911,246,727 - 41,821 128,092,018
2019 950,003,406 - 3,000,000 - 50,504 15,121,739
2018 987,810,267 6,000,000 - 7,965 -
2017 792,916,124 30,000,000 9,000,000 - 28,939
2016 782,532,106 20,000,000 12,000,000 - 46,181 -
2015 792,297,152 - 15,000,000 60,357 -
2014 801,782,659 - 18,000,000 72,011 -
Sources: Finance DepartmentforoutstandingdebtforthefiscalyearendedJune30andCaliforniaStateDepartmentofFinanceforpopulationasofJanuary
1.
1SeetheScheduleof Demographicand EconomicStatisticsforpersonal incomeand population data.
2InFY2022,theCommissionimplemented GASBStatement No.87, Leases . In FY2023, theCom mission implemented GASB No. 96, Su bscri ptions. Prior
yearamounts in this presentation have not been revised to reflectthischange.
132
177
Riverside County Transportation Commission
Ratios of Outstanding Debt by Type, Continued
Last Ten Fiscal Years
Business -Type Activities
Toll Revenue Bonds, net of
discount, premium, and Percentage of
Year accretion TIFIA Loan Total Primary Government Personal Income Debt per Capita'
2023 $ 734,891,709 $ 167,030,354 $ 1,694,510,345 N/A $ 694.69
2022 733,034,464 162,385,853 1,729,557,072 NIA 710.14
2021 210,216,120 656,943,710 1,738,752,768 1.38% 708.41
2020 204,647,796 486,339,336 1,730,367,698 1.52% 708.50
2019 199,423,911 469,870,660 1,637,470,220 1.56% 671.06
2018 194,522,170 453,980,866 1,642,321,268 1.65% 689.29
2017 189,923,251 438,628,419 1,460,496,733 1.54% 612.42
2016 185,607,330 277,696,320 1,277,881,937 1.45% 551.30
2015 181,557,045 48,904,095 1,037,818,649 1,24% 436.30
2014 177,755,391 - 997,610,061 1.28% 423.81
Sources: FinanceDepartmentforoutstandingdebtforthefiscalyearendedJune30andCaliforniaStateDepartmentofFinanceforpopulationasofJanuary1.
133
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Riverside County Transportation Commission
Computation of Legal Debt Margin'
Last Ten Fiscal Years
Fiscal Year
2023 2022 2021 2020 2019
Measure A Ordinance No. 02-001, as amended by Ordinance No. 10-0022
Total debtlimitauthorized $ 975,000,000 $ 975,000,000 $ 975,000,000 $ 975,000,000 $ 975,000,000
Amountofdebtapplicableto debt limit 715,915,000 747,320,000 777,315,000 805,810,000 833,055,000
Legal debtmargin $ 259,085,000 $ 227,680,000 $ 197,685,000 $ 169,190,000 $ 141,945,000
%ofdebtto legal debtlimit
Source: Finance Department
73.4% 76.6% 79.7% 82.6% 85.4%
TheCommission's debt limitwas approved bythevoters of RiversideCounty as partofthesalestaxordinanceand is specificto theCommission; accordingly, thereareno overlapping debt
considerations.
2 OrdinanceNo. 02-001 was approved bya2/3 majorityofthevoters in November2002.In November2010, a majority ofthevoters approved OrdinanceNo. 10-002 to increasethedebtlimit
from $500 million to $975 million.
IN Total debtlimit
authorized
•Amount of debt
applicableto debt
limit
$1,200,000,000
$1,000,000,000
$800,000,000
Measure A Ordinance No. 02-001, as amended by Ordinance No.10-002
$600,000,000
$400,000,000 -
$200,000,000 -
2023 2022 2021 2020 2019 2018 2017 2016 2015 2014
134
179
Riverside County Transportation Commission
Computation of Legal Debt Margin, Continued 1
Last Ten Fiscal Years
Fiscal Year
2018 2017 2016 2015 2014
Measure A Ordinance No. 02-001, as amended by Ordinance No. 10-0022
Total debt limitauthorized $ 975,000,000 $ 975,000,000 $ 975,000,000 $ 975,000,000 $ 975,000,000
Amountofdebtapplicableto debt limit 859,020,000 786,240,000 771,300,000 759,100,000 766,500,000
Legal debt margin $ 115,980,000 $188,760,000 $ 203,700,000 $ 215,900,000 $ 208,500,000
%ofdebtto legal debt limit
Source: Finance Department
88.1% 80.6% 79.1% 77.9% 78.6%
135
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Riverside County Transportation Commission
Demographic and Economic Statistics for the County of Riverside
Last Ten Calendar Years
Calendar Year
Sources:
Population' Personal Income (thousands)2 Income 2 Unemployment Rate3
2023 2,430,976 N/A N/A N/A
2022 2,435,525 N/A N/A 4.2%
2021 2,454,453 $ 125,820,553 $ 51,180 7.3%
2020 2,442,304 114,090,413 45,834 10.2%
2019 2,440,124 104,794,676 42,418 4.2%
2018 2,415,955 99,591,680 40,637 4.4%
2017 2,382,640 95,140,992 39,261 5.2%
2016 2,347,828 87,827,068 36,782 6.1%
2015 2,317,924 84,025,987 35,589 6.7%
2014 2,329,271 78,239,388 33,590 8.2%
1 California State Department ofFinanceasofJanuary1.
2 U.S. Department ofCommerceBureau ofEconomicAnalysis. Represents most recentdataavailable.
California State Employment Development Department. Represents most recent data available.
° 2020 reflects the im pacts from COVID-19 pandemic
136
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Riverside County Transportation Commission
Employment Statistics by Industry for the County of Riverside
Calendar Year 2022 and Nine Years Prior
% of Total
Industry Type 20221 Employment
2013
% of Total
Employment
Agricultural services, forestry, fishing and other 3,100 0.4% 2,600 0.4%
Mining 100 0.0% 200 0.0%
Construction 45,600 6.4% 27,100 4.6%
Manufacturing 23,200 3.3% 20,900 3.6%
Transportation, warehousing, and public utilities 24,500 3.4% 12,700 2.2%
Wholesaletrade 17,700 2.5% 15,500 2.6%
Retail trade 63,400 8.9% 59,000 10.0%
Professional& business services 106,400 14.9% 86,100 14.6%
Education &health services 123,200 17.3% 91,200 15.5%
Leisure&hospitality 65,000 9.1% 53,700 9.1%
Finance, insurance, and real estate 32,900 4.6% 31,500 5.3%
Information 7,200 1.0% 11,000 1.9%
Otherservices 24,300 3.5% 19,600 3.4%
Federal government, civilian 10,600 1.5% 9,800 1.8%
State government 101,700 14.3% 83,600 14.2%
Local government 63,900 9.0% 63,400 10.8%
Total employment 712,800 100.0% 587,900 100.0%
137
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Riverside County Transportation Commission
Full-time Equivalent Employees by Function/Program
Last Ten Fiscal Years
As of June 30
Function/Program 2023 2022 20211 2020 2019 2018 2017 2016 2015 2014
Managementservicesandadministration 24.0 21.1 18.5 18.7 18.0 19.2 17.1 14.7 16.2 13.8
Planning and programming 4.6 4.0 5.3 5.5 3.5 4.2 4.9 6.2 6.1 5.9
Rail operations and maintenance 3.1 3.8 4.4 3.5 3.4 4.1 4.3 4.5 4.0 3.1
Specialized transit/transportation 2.6 2.7 2.6 2.4 2.9 2.4 2.7 2.3 2.3 3.4
Commuterassistance 1.2 0.9 1.8 1.4 1.4 1.7 1.4 1.8 3.0 1.7
Motoristassistance 1.2 0.5 1.0 0.9 0.8 0.9 0.8 0.7 0.7 0.9
Capital project development and delivery and toll operations 19.3 20.7 16.6 17.6 16.0 15.5 15.8 15.8 13.7 15.2
Regional conservation 17.0 13.3 12.8 -
Totalfull-timeequivalents 73.0 67.0 63.0 50.0 46.0 48.0 47.0 46.0 46.0 44.0
Source: FinanceDepartment
1EffectiveJanuary 1, 2021, RCTC becamethe managing agencyfortheWestern RiversideCounty Regional Conservation Authority.
138
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RIVERSIDE
COUNTY
TRANSPORTATION
COMMISSION
139
184
Riverside County Transportation Commission
Operating Indicators
Last Ten Fiscal Years
As of June 30
2023 2022 2021 2020 2019
Toll operations:
RCTC91 Express Lanes
Gross trips 16,689,809 16,778,526 13,025,785 13,119,123 15,143,222
Gross potential revenue $ 67,843,178 $ 63,190,923 $ 43,734,242 $ 56,058,450 $ 57,172,266
Averagegross potential revenuepertrip $ 4.06 $ 3.77 $ 3.36 $ 4.12 $ 3.78
15 Express Lanes
Gross transactio ns 25,577,441 23,465,946 4,172,026 - -
Grosspotentialrevenue $ 30,348,550 $ 29,850,618 $ 5,361,524 -
Averagegrosspotentialrevenuepertransaction $ 1.19 $ 1.27 $ 1.29 - -
Commuterrail operations:2
Growth of averagedaily ridership on commuterlines:
Riverside line 1,001 742 469 3,961 3,868
IEOCline 1,824 1,636 1,028 4,784 4,656
91 line 1,585 1,206 685 3,731 3,293
Farebox recovery ratio:
Riverside line 12.0% 21.2% 6.6% 19.8% 43.0%
IEOCline 9.8% 15.8% 5.4% 21.1% 27.5%
91 line 12.1% 14.8% 5.7% 16.4% 24.1%
Specialized transit/transportation:
Specialized transit grants awarded 15 15 18 18 18
Commuterassistance:2
Ridesharelncentivemembers 1,613 203 97 519 526
Rideshare Plus Rewards members N/A 88 107 630 917
Monthlyspotlightparticipants 4,344 N/A N/A N/A N/A
Ridesharepledges 1,261 391 N/A 8,349 7,836
Rideguidesproduced 4,293 3,320 2,748 5,901 6,246
VanClubvanpools 37 33 29 32 67
CommuterExchangeevents N/A N/A N/A N/A N/A
Moto ristassistance:
Call boxes 158
Calls madefrom call boxes 782
Contracted Freeway Service Patro I vehicles 22
Assists by Freeway Service Patro I 51,583
1E511 web visits 901,233
1E511 call volumes 72,689
Transportation Uniform Mitigation Feeprogram:
Approved regional arterial projects 8
MeasureAprogram:
Highways
Commuterrail
Regional arterials
Local streets and roads
Specialized transit and co mmuterassistance
Total program expenditures
$ 100,376,319
19,310,998
4,626,056
87,229,315
22,212,832
$ 233,755,520 $ 247,067,157 $ 226,988,078 $ 307,259,682 $ 252,318,432
3
4
158 158 158 231
935 936 979 1,384
26 26 26 26
54,217 59,711 49,051 44,607
160,930 204,259 296,339 213,689
77,868 65,046 95,164 114,045
25 23 23 23
$ 129,198,965
12,079,835
3,207,422
85,183,610
17,397,325
$ 123,154,255
16,871,212
1,249,823
74,082,952
11,629,836
$ 209,530,745
16,744,864
4,939,979
59,475,694
16,568,400
$ 148,387,823
13,218,370
12,533,037
61,470,359
16,708,843
Source: Commission Departments
1 In FY2021, theCommission reached substantial completion on thel-1 5 Express Lanes projectand in April 2021 the15 Express Lanes opened to motorists.
2 In FY2021,thedecreaseincommuterrailoperationsandcommuterassistanceisaresultoftheimpactsofCOVID-19 and stayathomeorders.
3 In FY2023, theincreasein MotoristAssistance1E511 websitevisits is a resultofa new regional platform shared with LA Metro, SBCTA, OCTA, VCTC, and RCTC.
4 In FY2023, thedecrease represents theremaining approved regional arterial projects to befunded.
140
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Riverside County Transportation Commission
Operating Indicators, Continued
Last Ten Fiscal Years
As ot June 30
2018 2017 2016 2015 2014
Toll operations:
RCTC91 Express Lanes
Gross trips 14,518,302 4,049,067
Gross potential revenue $ 47,941,733 $ 9,618,429
Averagegross potential revenuepertrip $ 3.30 $ 2.38
15 Express Lanes
Gross transactions - - - - -
Gross potential revenue - -
Averagegrosspotentialrevenuepertransaction - - - - -
Commuterrail operations:
Growth of averag e d ai lyridership on co m m uter l i nes:
Riverside line 3,863 4,050 4,404 4,651 4,715
IEOCline 4,874 4,900 4,438 4,613 4,522
91 line 3,109 3,258 2,610 2,419 2,340
Farebox recovery ratio:
Riverside line 45.4% 47.2% 45.7% 49.6% 50.9%
IEOCline 29.2% 31.8% 33.4% 32.6% 37.6%
91 line 26.5% 26.5% 27.7% 38.6% 51.3%
Specialized transit/transportation:
Specializedtransitgrantsawarded 16 17 17 20 22
Com m uterassistance:
Ridesharelncentivemembers 573 505 597 736 1,106
RidesharePlusRewardsmembers 1,114 792 1,142 3,723 5,770
Monthlyspotlightparticipants N/A N/A N/A N/A N/A
Ridesharepledges 5,959 4,886 4,249 11,180 11,661
Rideguidesproduced 4,606 5,219 8,607 6,527 10,059
VanClubvanpools 31 N/A N/A N/A WA
CommuterExchangeevents N/A N/A N/A 48 54
Moto ristassistance:
Call boxes 241 240 545 549 570
Calls madefrom call boxes 1,598 2,161 3,053 3,882 4,685
Contracted Freeway Service Patrol vehicles 20 20 21 21 21
Assists by Freeway Service Patrol 41,417 40,180 36,711 42,471 44,278
1E511 web visits 408,021 618,130 473,462 452,713 443,359
1E511 callvolumes 142,287 201,099 233,895 263,757 306,108
Transportation Uniform Mitigation Fee program:
Approved regional arterial projects 20 20 24 24 24
MeasureAprogram:
Highways $ 180,565,301 $ 250,360,723 $ 372,657,029 $ 325,128,109 $ 299,398,122
Commuterrail 14,118,997 8,528,984 75,831,961 98,302,229 56,148,017
Regional arterials 6,158,736 14,739,703 17,090,247 5,012,254 1,441
Local streets and roads 53,639,698 51,864,011 49,826,564 48,615,815 46,677,580
Specialized transitand commuterassistance 15,197,859 13,826,624 14,499,642 14,063,310 13,378,223
Total program expenditures $ 269,680,591 $ 339,320,045 $ 529,905,443 $ 491,121,717 $ 415,603,383
Source: Commission Departments
141
186
RIVERSIDE
COUNTY
TRANSPORTATION
COMMISSION
142
187
Riverside County Transportation Commission
Capital Asset Statistics by Program
Last Ten Fiscal Years
As of June 30
2023 2022 2021 2020 2019 2018 2017 2016 2015 2014
Commuterrail:
Transitcentersowned and managed 1 1 1 1 1 1 1 1 1 1
Commuterrail stations owned and managed 9 9 9 9 9 9 9 9 5 5
Milesofcommuterraileasements 104.6 104.6 104.6 104.6 104.6 104.6 104.6 104.6 104.6 104.6
Co m m uterAssistance:
CommuterExchangeVehicle - - - - - - - - 1
Toll operations:
RCTC91 Express Lanes
Storageand maintenancebuilding - - 1 1 1 1
Customerservicecenter 1 1 1 1 1
Toll utility buildings 2 2 2 3 3 3 3
Miles of express lanes 36 36 36 36 36 36 36
Toll collection system gantries 4 4 4 4 4 4 4
0n -road closedcircuitTVcameras 36 36 36 36 36 36 36
Traffic operations centersystem 1 1 1 1 1 1 1
Communications network 1 1 1 1 1 1 1
Changeable messagesigns 5 5 5 6 6 6 6
15 Express Lanes
Storageand maintenancebuilding 1 1 1 -
Customerserviceeenter 1 1 1 - - - -
Regionaloperationscenterbuildings 1 1 1 -
Milesofexpresslanes 56 56 56 -
Tollcollectionsystemgantries 8 8 8 - - -
0n-roadclosed circuitTV cameras 27 27 27 - -
Trafficdetectionmonitoringdevices 37 37 37
Traffic operations centersystem 1 1 1 - - - Communications network 1 1 1 - - - Changeable messagesigns 3 3 3 - - - -
Variabletoll messagesigns 12 12 12 - - - -
Source: Commission Departments
143
188
RIVERSIDE
COUNTY
TRANSPORTATION
COMMISSION
144
189
190
RIVERSIDE
COUNTY
TRANSPORTATION
COMMISSION
Riverside County
Transportation Commission
(951) 787-7141 www.rctc.org
4080 Lemon Street, 3rd Floor
P.O. Box 12008 • Riverside, CA
92502-2208
191
ATTACHMENT 2
Local Transportation Fund of the County of
Riverside, as Administered by the Riverside
County Transportation Commission
Financial and Compliance Reports
Year Ended June 30, 2023
192
Contents
Independent Auditor's Report 1-3
Financial Statements
Balance Sheet 4
Statement of Revenues, Expenditures and Change in Fund Balance 5
Notes to Financial Statements 6-8
Supplementary Information
Schedule of Allocations and Disbursements
Schedule of Unclaimed Apportionments (Article 3)
Schedule of Unclaimed Apportionments (Articles 4 and 8)
Independent Auditor's Report on Internal Control Over Financial Reporting and on
Compliance and Other Matters Based on an Audit of Financial Statements Performed
in Accordance With Government Auditing Standards
9
10
11
12-13
193
EideBailly
CPAs & BUSINESS ADVISORS
Independent Auditor's Report
Board of Commissioners
Riverside County Transportation Commission
Riverside, California
Report on the Audit of the Financial Statements
Opinion
We have audited the financial statements of the Local Transportation Fund (the Fund) of the County of
Riverside, California, as administered by the Riverside County Transportation Commission (Commission)
as of and for the year ended June 30, 2023, and the related notes to the financial statements, as listed in
the table of contents.
In our opinion, the accompanying financial statements referred to above present fairly, in all material
respects, the financial position of the Fund of the County of Riverside, California, as administered by the
Commission, as of June 30, 2023, and the changes in financial position for the year then ended in
accordance with accounting principles generally accepted in the United States of America.
Basis for Opinion
We conducted our audit in accordance with auditing standards generally accepted in the United States
of America (GAAS) and the standards applicable to financial audits contained in Government Auditing
Standards (Government Auditing Standards), issued by the Comptroller General of the United States.
Our responsibilities under those standards are further described in the Auditor's Responsibilities for the
Audit of the Financial Statements section of our report. We are required to be independent of the
Commission and to meet our other ethical responsibilities, in accordance with the relevant ethical
requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient
and appropriate to provide a basis for our audit opinions.
Emphasis of Matter
As discussed in Note 1 to the financial statements, the financial statements present only the Fund and
do not purport to, and do not, present fairly the financial position of the Commission or the County of
Riverside, California, as of June 30, 2023 and the changes in financial position for the year then ended, in
accordance with accounting principles generally accepted in the United States of America. Our opinion is
not modified with respect to this matter.
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Responsibilities of Management for the Financial Statements
Management is responsible for the preparation and fair presentation of the financial statements in
accordance with accounting principles generally accepted in the United States of America; and for the
design, implementation, and maintenance of internal control relevant to the preparation and fair
presentation of financial statements that are free from material misstatement, whether due to fraud or
error.
Auditor's Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole
are free from material misstatement, whether due to fraud or error, and to issue an auditor's report
that includes our opinion. Reasonable assurance is a high level of assurance but is not absolute
assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS and
Government Auditing Standards will always detect a material misstatement when it exists. The risk of
not detecting a material misstatement resulting from fraud is higher than for one resulting from error,
as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of
internal control. Misstatements are considered material if there is a substantial likelihood that,
individually or in the aggregate, they would influence the judgment made by a reasonable user based on
the financial statements.
In performing an audit in accordance with GAAS and Government Auditing Standards, we:
• Exercise professional judgment and maintain professional skepticism throughout the audit.
• Identify and assess the risks of material misstatement of the financial statements, whether due
to fraud or error, and design and perform audit procedures responsive to those risks. Such
procedures include examining, on a test basis, evidence regarding the amounts and disclosures
in the financial statements.
• Obtain an understanding of internal control relevant to the audit in order to design audit
procedures that are appropriate in the circumstances, but not for the purpose of expressing an
opinion on the effectiveness of the Commission's internal control. Accordingly, no such opinion
is expressed.
• Evaluate the appropriateness of accounting policies used and the reasonableness of significant
accounting estimates made by management, as well as evaluate the overall presentation of the
financial statements.
We are required to communicate with those charged with governance regarding, among other matters,
the planned scope and timing of the audit, significant audit findings, and certain internal control —related
matters that we identified during the audit.
Required Supplementary Information
Management has omitted management's discussion and analysis that accounting principles generally
accepted in the United States of America require to be presented to supplement the basic financial
statements. Such missing information, although not a part of the financial statements, is required by the
Governmental Accounting Standards Board, who considers it to be an essential part of financial
reporting for placing the financial statements in an appropriate operational, economic or historical
context. Our opinion on the financial statements is not affected by this missing information.
2
195
Supplementary Information
Our audit was conducted for the purpose of forming an opinion on the financial statements that
collectively comprise the Fund's basic financial statements. The statements listed in the table of
contents as supplementary information are presented for purposes of additional analysis and are not a
required part of the basic financial statements. Such information is the responsibility of management
and was derived from and relates directly to the underlying accounting and other records used to
prepare the basic financial statements. The information has been subjected to the auditing procedures
applied in the audit of the basic financial statements and certain additional procedures, including
comparing and reconciling such information directly to the underlying accounting and other records
used to prepare the basic financial statements or to the basic financial statements themselves, and
other additional procedures in accordance with GAAS. In our opinion, the statements listed in the table
of contents are fairly stated, in all material respects, in relation to the basic financial statements as a
whole.
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated October 31,
2023, on our consideration of the Commission's internal control over the Fund's financial reporting and
on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant
agreements and other matters. The purpose of that report is solely to describe the scope of our testing
of internal control over financial reporting and compliance and the results of that testing, and not to
provide an opinion on the effectiveness of the Commission's internal control over financial reporting or
on compliance related to the Fund. That report is an integral part of an audit performed in accordance
with Government Auditing Standards in considering the Commission's internal control over the Fund's
financial reporting and compliance.
Rancho Cucamonga, California
October 31, 2023
3
196
Local Transportation Fund of the County of Riverside,
as Administered by the Riverside County Transportation Commission
Balance Sheet
June 30, 2023
Assets
Cash and investments in Riverside County Pooled Investment Fund
Accounts receivable
Interest receivable
Total assets
Liabilities and Fund Balance
$ 301,716,823
32,272,361
4,459,925
$ 338,449,109
Liabilities:
Accounts payable
Due to other Commission funds
Total liabilities
Restricted:
Unapportioned Local Transportation Funds
Rail and bus transit and local streets and roads apportionments
Bicycle and pedestrian projects
Total fund balance
Total liabilities and fund balance
See Notes to Financial Statements.
$ 1,255,284
616,900
1,872,184
24,437,031
302,664,155
9,475,739
336, 576, 925
$ 338,449,109
4
197
Local Transportation Fund of the County of Riverside,
as Administered by the Riverside County Transportation Commission
Statement of Revenues, Expenditures and Change in Fund Balance
Year Ended June 30, 2023
Revenues:
Sales taxes
Other reimbursements
Interest income (loss)
Total revenues
$ 156,282,435
15,438,482
5,616,669
177, 337, 586
Expenditures:
Bicycle and pedestrian projects 2,578,177
Transit 107,187, 579
Planning, programming, and administration 7,849,800
Total expenditures 117,615,556
Excess of revenues over (under) expenditures 59,722,030
Net change in fund balance 59,722,030
Fund balance, beginning of year 276,854,895
Fund balance, end of year $ 336,576,925
See Notes to Financial Statements.
5
198
Local Transportation Fund of the County of Riverside,
as Administered by the Riverside County Transportation Commission
Notes to Financial Statements
June 30, 2023
Note 1. Nature of Operations and Significant Accounting Policies
The Riverside County Transportation Commission (the Commission), in its capacity as the transportation
planning agency for the County of Riverside, California (the County), is responsible for administering funds
provided through the Local Transportation Fund (the Fund), which was created in accordance with the
provisions of the Transportation Development Act of 1971. The significant revenue to the Fund is derived
from 0.25 percent of the 7.75 percent statewide sales tax collected in the County by the California
Department of Tax and Fee Administration (CDTFA).
The accounting policies of the Fund, a special revenue fund of the Commission, conform to accounting
principles generally accepted in the United States as applicable to governmental units.
Presentation: The accompanying financial statements of the Fund are intended to present the financial
position and the changes in financial position of only that portion of the governmental activities of the
Commission that is attributable to the transactions of the Fund of the Commission. They do not purport to,
and do not, present fairly the financial position of the Commission or the County as of June 30, 2023 and
the related changes in its financial position for the year then ended, in conformity with accounting principles
generally accepted in the United States of America.
Basis of accounting: In accordance with the requirements for governmental funds, the modified accrual
basis of accounting is followed in the Fund. Under the modified accrual basis of accounting, expenditures
are recorded when they are expected to be liquidated with expendable available resources, and revenue is
recorded when it becomes both measurable and available. "Measurable" means the amount of the
transaction can be determined, and "available" means collectible within the current period or soon enough
thereafter to be used to pay liabilities of the current period. For this purpose, the Commission considers
revenues to be available if they are collected within 180 days of the end of the current fiscal period. Those
revenues susceptible to accrual include sales taxes collected and held by the CDTFA at year-end on behalf
of the Commission and interest revenue.
Funding: There is a three -step process for obtaining funds from the Fund: apportionment, allocation and
payment. Annually, the Commission determines each area's share of the anticipated Fund. This share is
the area apportionment. Once funds are apportioned to a given area, they are typically available only for
allocation to claimants in that area. Allocation is the discretionary action by the Commission that designates
funds for a specific claimant for a specific purpose. Payment is authorized by disbursement instructions
issued by the Commission.
Cash: It is the Commission's policy to deposit all funds received in the Riverside County Pooled Investment
Fund (RCPIF), as legally required, until the funds are required for disbursement. Interest income is earned
while these funds are deposited.
Accounts receivable: Accounts receivable consist primarily of Fund sales tax revenues from the CDTFA
on all taxable sales within the County of Riverside, California through June 30, 2023.
Accounts payable: Accounts payable consist primarily of claims approved by the Commission, but not
paid by the Commission, to the appropriate transit operators by June 30, 2023.
6
199
Local Transportation Fund of the County of Riverside,
as Administered by the Riverside County Transportation Commission
Notes to Financial Statements
June 30, 2023
Note 1. Nature of Operations and Significant Accounting Policies (Continued)
Fund balance restrictions: The Fund reports restricted fund balances to show the level of constraint
governing the use of the funds as set forth by enabling State legislation.
Expenditures: Expenditures represent disbursements to the Commission, Southern California Association
of Governments, cities, the County of Riverside and transit operators that have met the claimant eligibility
requirements to receive Fund allocations that are approved by the Commission, per various Public Utilities
Code Sections. All disbursements are to be used for transportation purposes.
Note 2. Cash and Investments with County Treasurer
The funds in the RCPIF are pooled with those of other entities and invested in accordance with the County's
investment policy. These pooled funds are carried at fair value. Investments in U.S.Treasury, federal
agency, mortgage and asset -backed, municipal, corporate, negotiable certificates of deposit, and
commercial paper securities are carried at fair value based on quoted market prices. Money market mutual
funds are carried at fair value based on each fund's share price. The pooled funds are not subject to level
1, 2 or 3 of the fair value hierarchy prescribed by Governmental Accounting Standards Board Statement
No. 72, Fair Value Measurement and Application. An Investment Oversight Committee has been
established by the County, which acts as a regulator of the pool. As of June 30, 2023, the Commission had
$301,716,823 invested in the RCPIF, with an average maturity of 474 days. Additional information on
investment types, fair value measurement and credit risk of the RCPIF may be obtained from the County
of Riverside Treasurer -Tax Collector located at 4080 Lemon Street, 4th Floor, Riverside, California 92502
or by visiting the Treasurer -Tax Collector website at www.countytreasurer.org.
Interest rate risk: While the Commission does not have a formal policy related to the interest rate risk of
investments, the Commission's investment policy follows the California Government Code as it relates to
limits on investment maturities as a means of managing exposure to fair value losses arising from increasing
interest rates.
Credit risk: As of June 30, 2023 the Commission's investment in the RCPIF was rated Aaa/bf by Moody's
Investors Service and AAAf/S1 by Fitch Ratings. The Commission's investment policy only requires credit
quality ratings for repurchase agreements, U.S. corporate debt, commercial paper, bankers' acceptances,
and certificates of deposit.
7
200
Local Transportation Fund of the County of Riverside,
as Administered by the Riverside County Transportation Commission
Notes to Financial Statements
June 30, 2023
Note 3. Fund Balance
The restricted fund balance represents the apportionments related to transit programs by geographic area,
bicycle and pedestrian projects, planning and programming, and unapportioned Local Transportation
Funds. For Western County transit programs, commuter rail and bus allocations are in accordance with the
Commission's policy.
At June 30, 2023, amounts in fund balance are restricted as follows:
Rail and bus transit and local streets and roads apportionments:
Western County:
Commuter rail:
Apportioned and unallocated $ 44,335,755
Bus transit:
Allocated and unclaimed — City of Banning 19,286
Allocated and unclaimed — City of Beaumont 100,000
Allocated and unclaimed — Riverside Transit Agency 2,421,098
Apportioned and unallocated 204,909,783
Total rail and bus transit — Western County 251,785,922
Coachella Valley:
Allocated and unclaimed
Apportioned and unallocated
Total bus transit — Coachella Valley
1,233,219
46, 517, 910
47, 751,129
Palo Verde Valley:
Total bus transit — Palo Verde Valley 3,127,104
Total for rail and bus transit apportionments $ 302,664,155
Bicycle and pedestrian projects:
Allocated and unclaimed $ 4,991,176
Unallocated 4,484,563
Total for bicycle and pedestrian projects $ 9,475,739
Unapportioned Local Transportation Funds
$ 24,437,031
Total fund balance $ 336,576,925
8
201
Supplementary Information
202
Local Transportation Fund of the County of Riverside,
as Administered by the Riverside County Transportation Commission
Schedule of Allocations and Disbursements
Year Ended June 30, 2023
Article 3
Banning, Pogrammng
SB 821 Article 3 Article 4 Article 8 and Adrrinistrative
(Expirations /
Allocations Disbursements Allocations (Allocations
Returned) Returned)
Allocations Disbursements
(Allocations
Returned)
Allocations Disbursements Allocations Disbursements
(Allocations
Returned)
Expenditures:
City of Banning $ - $ - $ - $ - $ 1,885,786 $ 1,866,500 $ (425,362) $ $
City of Beaumont - 2,549,617 2,449,617 (115,935)
City of Cathedral Qty 338,400
City of Coachella (840)
City of Corona 432,500 1,456,060 1,456,060 (429,288)
City of Desert Hot Springs 670,906 330,906 -
City of Eastvale 432,500 144,110 (288,390)
City of Hemet 248,200
City of Jurupa Valley 364,880
City of Lake Elsinore 463,766 39,500
Qty of La Quinta 97,700 60,607 (37,093)
ON of Menifee 495,372 272,267
City of Moreno Valley 430,000 342,619 (87,381)
Qty of Norco 96,000
Qty of Palm Springs 168,500 168,500
City of Rancho Mrage 865,000
Qty of Riverside 412,500 4,797,327 4,797,327 (4,065,645)
City of Witdoner 1,088,825 275,000
County of Riverside:
Auditor/Controller
Road Department 1,415,875 944,668 (38,708)
Palo Verde Valley Transit Agency 735,569 735,569 (19,888)
Conrrission 22,100,000 21,500,000
RrrersideTransit Agency 52,217,751 49,796,652 (8,460,658)
SCAG - - -
SunlineTransitAgency 25,816,577 24,585,854 (1,920,866)
Totals
Ilncbined Amount
(Expirations I (Use of Prior
Allocations Disbursements Allocations Allocations 1
Returned) Allocations
Returned), Net
$ $ $ 1,885,786 $ 1,866,500 $ (425,362) $ 444,648
2,549,617 2,449,617 (115,935) 215,935
338,400 338,400
(840) 840
- 1,888,560 1,456,060 (429,288) 861,788
670,906 330,906 340,000
432,500 144,110 (288,390) 576,780
248,200 248,200
364,880 364,880
463,766 39,500 424,266
97,700 60,607 (37,093) 74,186
495,372 272,267 223,105
430,000 342,619 (87,381) 174,762
96,000 96,000
168,500 168,500
865,000 865,000
5,209,827 4,797,327 (4,065,645) 4,478,145
1,088,825 275,000 813,825
12,000 12,000
6,422,800 6,422,800
1,415,000 1,415,000
$8,020,924 $ 2,578,177 $ (452,412) $
12,000 12,000
1,415,875 944,668 (38,708) 509,915
735,569 735,569 (19,888) 19,888
28,522,800 27,922,800 600,000
52,217,751 49,796,652 (8,460,658) 10,881,757
1,415,000 1,415,000
25,816,577 24,585,854 (1,920,866) 3,151,588
$111,558,687 $107,187,579 $(15,437,642) $ - $ - $7,849,800 $ 7,849,800 $ - 0127,429,411 $117,615,556 $ (15,890,054) $ 25,703,908
283
Local Transportation Fund of the County of Riverside,
as Administered by the Riverside County Transportation Commission
Schedule of Unclaimed Apportionments (Article 3)
Year Ended June 30, 2023
Unclaimed Unclaimed
Apportionment Interest Apportionment
July 1, 2022 Apportionment Reimbursements Disbursements Income (Loss) June 30, 2023
Bicycle and pedestrian projects $ 8,347,486 $ 3,606,000 $ 840 $ (2,578,177) $ 99,590 $ 9,475,739
2194
Local Transportation Fund of the County of Riverside,
as Administered by the Riverside County Transportation Commission
Schedule of Unclaimed Apportionments (Articles 4 and 8)
Year Ended June 30, 2023
Fiscal Year 2022/23
Prior Fiscal Year
Apportionment
Amounts
Claimed
Unclaimed
Apportionment Apportionment
Amounts
Gained
Amount
Returned
Unclaimed
Apportionment
Interest
Allocation
Total
Unclaimed
Apportionment
June 30, 2023
Western County:
Rail
Bus
Coachella Valley
Palo Verde Valley:
Transit
Total transportation
$ 27,881,000 $
98,851,000
30,709,000
1,566,000
159,007,000
21,500,000 $ 6,381,000 $ 37,098,885 $
60,328,579 38,522,421 151,746,061
24,457,513
735,569
107, 021, 661
Auditor/Controller 12,000 12,000
Commission administration 763,800 763,800
Commission planning 5,659,000 5,659,000
SCAG planning 1,415,000 1,415,000
Total administration
and planning 7,849,800 7,849,800
6,251,487
830,431
51,985,339
38,824,486
2,220,581
229,890,013
- $ - $ 37,098,885 $ 855,870 $ 44,335,755
37,577
128,341
165,918
(13,496,888) 165,205,372
(1,920,866)
(19,888)
(15,437,642)
40, 617,011
2,240,469
245,161, 737
3,722,374 207,450,167
882,631
56,204
5,517,079
47, 751,129
3,127,104
302,664,155
Total apportionments $ 166,856,800 $ 114,871,461 $ 51,985,339 $ 229,890,013 $ 165,918 $ (15,437,642) $ 245,161,737 $ 5,517,079 $ 302,664,155
21)5
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CPAs & BUSINESS ADVISORS
Independent Auditor's Report on Internal Control over Financial Reporting and on Compliance and
Other Matters Based on an Audit of Financial Statements Performed in Accordance with
Government Auditing Standards
Board of Commissioners
Riverside County Transportation Commission
Riverside, California
We have audited, in accordance with the auditing standards generally accepted in the United States of
America and the standards applicable to financial audits contained in Government Auditing Standards,
issued by the Comptroller General of the United States (Government Auditing Standards), the financial
statements of the Local Transportation Fund (the Fund) of the County of Riverside, California, as
administered by the Riverside County Transportation Commission (Commission), as of and for the year
ended June 30, 2023, and the related notes to the financial statements, and have issued our report
thereon dated October 31, 2023. Our report included an emphasis of matter paragraph indicating that
the financial statements present only the Fund and do not purport to, and do not, present fairly the
financial position of the Commission or the County of Riverside, California, as of June 30, 2023, and the
changes in its financial position for the year ended in accordance with accounting principles generally
accepted in the United States of America.
Report on Internal Control over Financial Reporting
In planning and performing our audit of the financial statements, we considered the Commission's
internal control over the Fund's financial reporting (internal control) as a basis for designing audit
procedures that are appropriate in the circumstances for the purpose of expressing our opinion on the
financial statements, but not for the purpose of expressing an opinion on the effectiveness of the
Commission's internal control related to the Fund. Accordingly, we do not express an opinion on the
effectiveness of the Commission's internal control related to the Fund.
A deficiency in internal control exists when the design or operation of a control does not allow
management or employees, in the normal course of performing their assigned functions, to prevent, or
detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a
combination of deficiencies, in internal control, such that there is a reasonable possibility that a material
misstatement of the Fund's financial statements will not be prevented, or detected and corrected, on a
timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control
that is less severe than a material weakness, yet important enough to merit attention by those charged
with governance.
Our consideration of internal control was for the limited purpose described in the first paragraph of this
section and was not designed to identify all deficiencies in internal control that might be material
weaknesses or significant deficiencies. Given these limitations, during our audit, we did not identify any
deficiencies in internal control that we consider to be material weaknesses. However, material
weaknesses or significant deficiencies may exist that have not been identified.
12
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Report on Compliance and Other Matters
As part of obtaining reasonable assurance about whether the Fund's financial statements are free from
material misstatement, we performed tests of its compliance with certain provisions of laws,
regulations, contracts and grant agreements, noncompliance with which could have a direct and
material effect on the financial statements. However, providing an opinion on compliance with those
provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The
results of our tests disclosed no instances of noncompliance or other matters that are required to be
reported under Government Auditing Standards.
Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control and
compliance and the results of that testing, and not to provide an opinion on the effectiveness of the
Commission's internal control or on compliance as it relates to the Fund. This report is an integral part of
an audit performed in accordance with Government Auditing Standards in considering the Commission's
internal control and compliance related to the Fund. Accordingly, this communication is not suitable for
any other purpose.
Rancho Cucamonga, California
October 31, 2023
13
207
ATTACHMENT 3
State Transit Assistance Fund of the County of
Riverside, as Administered by the Riverside
County Transportation Commission
Financial and Compliance Reports
Year Ended June 30, 2023
208
Contents
Independent Auditor's Report
1-3
Financial Statements
Balance Sheet
Statement of Revenues, Expenditures and Change in Fund Balance
Notes to Financial Statements
4
5
6-8
Supplementary Information
Schedule of Allocations and Disbursements Approved During the Year 9
Independent Auditor's Report on Internal Control Over Financial Reporting
and on Compliance and Other Matters Based on an Audit of Financial
Statements Performed in Accordance With Government Auditing Standards
10-11
209
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CPAs & BUSINESS ADVISORS
Independent Auditor's Report
Board of Commissioners
Riverside County Transportation Commission
Riverside, California
Report on the Audit of the Financial Statements
Opinion
We have audited the financial statements of the State Transit Assistance Fund (the Fund) of the County
of Riverside, California, as administered by the Riverside County Transportation Commission
(Commission) as of and for the year ended June 30, 2023, and the related notes to the financial
statements, as listed in the table of contents.
In our opinion, the accompanying financial statements referred to above present fairly, in all material
respects, the financial position of the Fund, as of June 30, 2023, and the changes in financial position for
the year then ended in accordance with accounting principles generally accepted in the United States of
America.
Basis for Opinion
We conducted our audit in accordance with auditing standards generally accepted in the United States
of America (GAAS) and the standards applicable to financial audits contained in Government Auditing
Standards (Government Auditing Standards), issued by the Comptroller General of the United States.
Our responsibilities under those standards are further described in the Auditor's Responsibilities for the
Audit of the Financial Statements section of our report. We are required to be independent of the
Commission and to meet our other ethical responsibilities, in accordance with the relevant ethical
requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient
and appropriate to provide a basis for our audit opinion.
Emphasis of Matter
As discussed in Note 1 to the financial statements, the financial statements present only the Fund and
do not purport to, and do not, present fairly the financial position of the Commission or the County of
Riverside, California, as of June 30, 2023, and the changes in financial position for the year then ended,
in accordance with accounting principles generally accepted in the United States of America. Our
opinion is not modified with respect to this matter.
1
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Responsibilities of Management for the Financial Statements
Management is responsible for the preparation and fair presentation of the financial statements in
accordance with accounting principles generally accepted in the United States of America; and for the
design, implementation, and maintenance of internal control relevant to the preparation and fair
presentation of financial statements that are free from material misstatement, whether due to fraud or
error.
Auditor's Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole
are free from material misstatement, whether due to fraud or error, and to issue an auditor's report
that includes our opinion. Reasonable assurance is a high level of assurance but is not absolute
assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS and
Government Auditing Standards will always detect a material misstatement when it exists. The risk of
not detecting a material misstatement resulting from fraud is higher than for one resulting from error,
as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of
internal control. Misstatements are considered material if there is a substantial likelihood that,
individually or in the aggregate, they would influence the judgment made by a reasonable user based on
the financial statements.
In performing an audit in accordance with GAAS and Government Auditing Standards, we:
• Exercise professional judgment and maintain professional skepticism throughout the audit.
• Identify and assess the risks of material misstatement of the financial statements, whether due
to fraud or error, and design and perform audit procedures responsive to those risks. Such
procedures include examining, on a test basis, evidence regarding the amounts and disclosures
in the financial statements.
• Obtain an understanding of internal control relevant to the audit in order to design audit
procedures that are appropriate in the circumstances, but not for the purpose of expressing an
opinion on the effectiveness of Commission's internal control. Accordingly, no such opinion is
expressed.
• Evaluate the appropriateness of accounting policies used and the reasonableness of significant
accounting estimates made by management, as well as evaluate the overall presentation of the
financial statements.
We are required to communicate with those charged with governance regarding, among other matters,
the planned scope and timing of the audit, significant audit findings, and certain internal control —related
matters that we identified during the audit.
Required Supplementary Information
Management has omitted the management's discussion and analysis that accounting principles
generally accepted in the United States of America require to be presented to supplement the basic
financial statements. Such missing information, although not a part of the basic financial statements, is
required by the Governmental Accounting Standards Board, who considers it to be an essential part of
financial reporting for placing the basic financial statements in an appropriate operational, economic, or
historical context. Our opinion on the basic financial statements is not affected by the missing
information.
2
211
Supplementary Information
Our audit was conducted for the purpose of forming an opinion on the financial statements that
collectively comprise the Fund's basic financial statements. The schedules listed in the table of contents
are presented for purposes of additional analysis and are not a required part of the basic financial
statements. Such information is the responsibility of management and was derived from and relates
directly to the underlying accounting and other records used to prepare the basic financial statements.
The information has been subjected to the auditing procedures applied in the audit of the basic financial
statements and certain additional procedures, including comparing and reconciling such information
directly to the underlying accounting and other records used to prepare the basic financial statements
or to the basic financial statements themselves, and other additional procedures in accordance with
GAAS. In our opinion, the schedules listed in the table of contents are fairly stated, in all material
respects, in relation to the basic financial statements as a whole.
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated October 31,
2023, on our consideration of the Commission's internal control over the Fund's financial reporting and
on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant
agreements and other matters. The purpose of that report is solely to describe the scope of our testing
of internal control over financial reporting and compliance and the results of that testing, and not to
provide an opinion on the effectiveness of the Commission's internal control over financial reporting or
on compliance related to the Fund. That report is an integral part of an audit performed in accordance
with Government Auditing Standards in considering the Commission's internal control over the Fund's
financial reporting and compliance.
Rancho Cucamonga, California
October 31, 2023
3
212
State Transit Assistance Fund of the County of Riverside,
as Administered by the Riverside County Transportation Commission
Balance Sheet
June 30, 2023
Assets
Cash and investments
Accounts receivable
Interest receivable
Total assets
Liabilities and Fund Balance
$ 132, 737, 758
9,675,159
1,994,314
$ 144,407,231
Liabilities
Accounts payable
Due to other Commission funds
Total liabilities
Fund Balance
Restricted allocations available for programming
Restricted for unclaimed allocations
Total fund balance
Total liabilities and fund balance
See Notes to Financial Statements.
$ 1,496,198
752,484
2,248,682
74, 289, 215
67, 869, 334
142,158, 549
$ 144,407,231
4
213
State Transit Assistance Fund of the County of Riverside,
as Administered by the Riverside County Transportation Commission
Statement of Revenues, Expenditures and Change in Fund Balance
Year Ended June 30, 2023
Revenues:
Sales taxes
Other reimbursements
Interest income
Total revenues
$ 37, 244, 079
5,125
2,874,905
40,124,109
Expenditures:
Administration 153,533
Transit 29,467,441
Total expenditures 29,620,974
Net change in fund balance
Fund balance, beginning of year
Fund balance, end of year $ 142,158,549
10, 503,135
131, 655,414
See Notes to Financial Statements.
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214
State Transit Assistance Fund of the County of Riverside
as Administered by the Riverside County Transportation Commission
Notes to Financial Statements
June 30, 2023
Note 1. Nature of Operations and Significant Accounting Policies
The Riverside County Transportation Commission (the Commission), in its capacity as the transportation
planning agency for the County of Riverside, California (the County), is responsible for administering funds
provided through the State Transit Assistance Program, which was created in 1979 under Chapter 161 (SB
620) of the California statutes to provide a second source of Transportation Development Act funding for
the development of transit systems. The funds are derived from fuel sales tax revenue and are budgeted
through legislation and appropriated to the State Controller's Office (the State) for allocation to local
agencies.
The accounting policies of the State Transit Assistance Fund (the Fund), a special revenue fund of the
Commission, conform to accounting principles generally accepted in the United States as applicable to
governmental units.
A summary of the Commission's significant accounting policies is as follows:
Presentation: The accompanying financial statements of the Fund are intended to present the financial
position and the changes in financial position of only that portion of the governmental activities of the
Commission that is attributable to the transactions of the Fund of the Commission. They do not purport to,
and do not, present fairly the financial position of the Commission or the County as of June 30, 2023 and
the related changes in its financial position for the year then ended, in conformity with accounting principles
generally accepted in the United States of America.
Basis of accounting: In accordance with the requirements for governmental funds, the modified accrual
basis of accounting and current resources measurement focus is followed in the Fund. Under this method
of accounting, expenditures are recorded when they are expected to be liquidated with expendable
available resources, and revenue is recorded when it becomes both measurable and available.
"Measurable" means the amount of the transaction can be determined, and "available" means collectible
within the current period or soon enough thereafter to be used to pay liabilities of the current period. For
this purpose, the Commission considers revenues to be available if they are collected within 180 days of
the end of the fiscal year. Those revenues susceptible to accrual include fuel sales tax revenue and interest
revenue.
Allocations to local agencies: State transit assistance funds are allocated to the operators within the
County. Public Utilities Code (PUC) Section 99313 allocates funds to regional transportation planning
agencies based on the ratio of area population to state population. PUC Section 99314 allocates funds to
public operators based on their share of fares and local support to other operators in the state. The
allocations must be made in a resolution adopted by the Commission.
Cash and investments: It is the Commission's policy to deposit all funds received in the Riverside County
Pooled Investment Fund (RCPIF) or US Bank for investment until the funds are required for disbursement.
Interest income is earned while these funds are deposited.
Accounts receivable: Accounts receivable consist primarily of fuel sales tax revenues from the State of
California not received as of June 30, 2023.
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215
State Transit Assistance Fund of the County of Riverside
as Administered by the Riverside County Transportation Commission
Notes to Financial Statements
June 30, 2023
Note 1. Nature of Operations and Significant Accounting Policies (Continued)
Fund balance restrictions: The Fund reports restricted fund balances to show the level of constraint
governing the use of the funds as set forth by enabling State legislation. The restricted fund balance for
allocations available for programming represents amounts apportioned but not allocated to claimants. The
restricted fund balance for unclaimed allocations represents amounts allocated by the Commission and due
to claimants but not yet paid, as claimants have not yet provided the appropriate claim documentation to
the Commission as of June 30, 2023.
Accounts payable: Accounts payable consist primarily of claims approved by the Commission, but not
paid by the Commission, to the appropriate transit operators by June 30, 2023.
Expenditures: Expenditures represent funds disbursed to transit operators that have met the eligibility
requirements to receive State Transit Assistance Program funds per PUC Sections 99313 and 99314. All
disbursements are to be used for transit purposes.
Note 2. Cash and Investments
Cash and investments at June 30, 2023 consist of the following:
Cash and investments with RCPIF
Commission operating investment pool
Cash in bank
$ 121, 866,134
10, 864, 996
6,628
$ 132, 737, 758
The funds in the RCPIF are pooled with those of other entities in the RCPIF and invested in accordance
with the County's investment policy. The funds in the Commission's operating investment pool are pooled
with those of other Commission operating funds and invested in accordance with the Commission's
investment policy. These pooled funds are carried at fair value. Investments in U.S. Treasury, federal
agency, mortgage and asset -backed, municipal, corporate, negotiable certificates of deposit, and
commercial paper securities are carried at fair value based on quoted market prices. Money market mutual
funds are carried at fair value based on each fund's share price. The pooled funds are not subject to level
1, 2 or 3 of the fair value hierarchy prescribed by Governmental Accounting Standards Board Statement
No. 72, Fair Value Measurement and Application. The Commission is a voluntary participant in the RCPIF.
An Investment Oversight Committee has been established by the County, which acts as a regulator of the
RCPIF. As of June 30, 2023 the Fund had $121,866,134 invested in the RCPIF, with a weighted average
maturity of 474 days, and $10,864,996 invested in the Commission operating investment pool. Additional
information on investment types, fair value measurement and credit risk of the RCPIF and the Commission
operating investment pool may be obtained from the County of Riverside Treasurer -Tax Collector located
at 4080 Lemon Street, 4th Floor, Riverside, California 92502 or by visiting the Treasurer -Tax Collector
website at www.countytreasurer.org and the notes to the Commission's basic financial statements included
in the Commission's Annual Comprehensive Financial Report, respectively.
Interest rate risk: While the Commission does not have a formal policy related to the interest rate risk of
investments, the Commission's investment policy follows the California Government Code as it relates to
limits on investment maturities as a means of managing exposure to fair value losses arising from increasing
interest rates.
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216
State Transit Assistance Fund of the County of Riverside
as Administered by the Riverside County Transportation Commission
Notes to Financial Statements
June 30, 2023
Note 2. Cash and Investments (Continued)
Credit risk: As of June 30, 2023 the Commission's investment in the RCPIF was rated Aaa/bf by Moody's
Investors Service and AAAf/S1 by Fitch Ratings. The Commission's investment policy only requires credit
quality ratings for repurchase agreements, U.S. corporate debt, commercial paper, bankers' acceptances,
and certificates of deposit.
Note 3. Fund Balance
At June 30, 2023, amounts are restricted for apportioned and unallocated amounts and for unpaid
allocations by geographic area. For Western County transit programs, commuter rail and bus allocations
are in accordance with the Commission's policy.
Restricted for allocations available for programming:
Western County:
Commuter rail $ 37,564,845
Bus 32, 664, 850
Coachella Valley:
Commuter rail 381,133
Bus 3,470,750
Palo Verde Valley 207,637
74, 289, 215
Restricted for unclaimed allocations:
Western County:
Commuter rail 9,536,494
City of Banning 6,189,762
City of Beaumont 6,699,391
City of Corona 1,270,193
City of Riverside 156,676
Riverside Transit Agency 28,951,416
Coachella Valley:
SunLine Transit Agency 14,302,932
Rail 235,927
Palo Verde Valley:
Palo Verde Valley Transit Agency 526,543
67, 869, 334
Total fund balance $ 142,158,549
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217
Supplementary Information
218
State Transit Assistance Fund of the County of Riverside,
as Administered by the Riverside County Transportation Commission
Schedule of Allocations and Disbursements Approved During the Year
Year Ended June 30, 2023
Recipient
Current Year
Allocation
Amount
Disbursed
California
Code of
Regulations
Section No.
Reference
Western County:
City of Banning
City of Beaumont
City of Corona
City of Riverside
Riverside Transit Agency
Commission Commuter Rail Program
Total Western County
Coachella Valley:
SunLine Transit Agency
Rail Program
Total Coachella Valley
$ 3,145,000 $ 114,516
2,190,000 473,827
(574)
80,000 206,685
5,182,474 23,710,608
8,000,000 3,433,456
18,597,474 27,938,518
6731
6731
6731
6731
6730
6730
5,484,000 283,330 6730
441,200 1,219,985 6730
5,925,200
Palo Verde Valley Transit Agency 454,000
1,503,315
25,608 6730
Other 153,533
$ 24, 976, 674 $ 29, 620, 974
9
219
EideBailly
CPAs & BUSINESS ADVISORS
Independent Auditor's Report on Internal Control over Financial Reporting and on Compliance and
Other Matters Based on an Audit of Financial Statements Performed in Accordance with
Government Auditing Standards
Board of Commissioners
Riverside County Transportation Commission
Riverside, California
We have audited, in accordance with the auditing standards generally accepted in the United States of
America and the standards applicable to financial audits contained in Government Auditing Standards,
issued by the Comptroller General of the United States (Government Auditing Standards), the financial
statements of the State Transit Assistance Fund (the Fund) of the County of Riverside, California, as
administered by the Riverside County Transportation Commission (Commission), as of and for the year
ended June 30, 2023, and the related notes to the financial statements, and have issued our report
thereon dated October 31, 2023. Our report included an emphasis of matter paragraph indicating that
the financial statements present only the Fund and do not purport to, and do not, present fairly the
financial position of the Commission or the County of Riverside, California, as of June 30, 2023, and the
changes in its financial position for the year ended in accordance with accounting principles generally
accepted in the United States of America.
Report on Internal Control over Financial Reporting
In planning and performing our audit of the financial statements, we considered the Commission's
internal control over the Fund's financial reporting (internal control) as a basis for designing audit
procedures that are appropriate in the circumstances for the purpose of expressing our opinion on the
financial statements, but not for the purpose of expressing an opinion on the effectiveness of the
Commission's internal control related to the Fund. Accordingly, we do not express an opinion on the
effectiveness of the Commission's internal control related to the Fund.
A deficiency in internal control exists when the design or operation of a control does not allow
management or employees, in the normal course of performing their assigned functions, to prevent, or
detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a
combination of deficiencies, in internal control, such that there is a reasonable possibility that a material
misstatement of the Fund's financial statements will not be prevented, or detected and corrected, on a
timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control
that is less severe than a material weakness, yet important enough to merit attention by those charged
with governance.
Our consideration of internal control was for the limited purpose described in the first paragraph of this
section and was not designed to identify all deficiencies in internal control that might be material
weaknesses or significant deficiencies. Given these limitations, during our audit, we did not identify any
deficiencies in internal control that we consider to be material weaknesses. However, material
weaknesses or significant deficiencies may exist that have not been identified.
10
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Report on Compliance and Other Matters
As part of obtaining reasonable assurance about whether the Fund's financial statements are free from
material misstatement, we performed tests of its compliance with certain provisions of laws,
regulations, contracts and grant agreements, noncompliance with which could have a direct and
material effect on the financial statements. However, providing an opinion on compliance with those
provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The
results of our tests disclosed no instances of noncompliance or other matters that are required to be
reported under Government Auditing Standards.
Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control and
compliance and the results of that testing, and not to provide an opinion on the effectiveness of the
Commission's internal control or on compliance as it relates to the Fund. This report is an integral part of
an audit performed in accordance with Government Auditing Standards in considering the Commission's
internal control and compliance related to the Fund. Accordingly, this communication is not suitable for
any other purpose.
Rancho Cucamonga, California
October 31, 2023
11
221
ATTACHMENT 4
State of Good Repair Fund of the County of
Riverside, as Administered by the Riverside
County Transportation Commission
Financial and Compliance Reports
Year Ended June 30, 2023
222
Contents
Independent Auditor's Report
1-3
Financial Statements
Balance Sheet
Statement of Revenues, Expenditures and Change in Fund Balance
Notes to Financial Statements
4
5
6-8
Supplementary Information
Schedule of Allocations and Disbursements Approved During the Year 9
Independent Auditor's Report on Internal Control Over Financial Reporting
and on Compliance and Other Matters Based on an Audit of Financial
Statements Performed in Accordance With Government Auditing Standards
10-11
223
EideBailly
CPAs & BUSINESS ADVISORS
Independent Auditor's Report
Board of Commissioners
Riverside County Transportation Commission
Riverside, California
Report on the Audit of the Financial Statements
Opinion
We have audited the financial statements of the State of Good Repair Fund (the Fund) of the County of
Riverside, California, as administered by the Riverside County Transportation Commission (Commission)
as of and for the year ended June 30, 2023, and the related notes to the financial statements, as listed in
the table of contents.
In our opinion, the accompanying financial statements referred to above present fairly, in all material
respects, the financial position of the Fund of the Commission, as of June 30, 2023, and the changes in
financial position for the year then ended in accordance with accounting principles generally accepted in
the United States of America.
Basis for Opinion
We conducted our audit in accordance with auditing standards generally accepted in the United States
of America (GAAS) and the standards applicable to financial audits contained in Government Auditing
Standards (Government Auditing Standards), issued by the Comptroller General of the United States.
Our responsibilities under those standards are further described in the Auditor's Responsibilities for the
Audit of the Financial Statements section of our report. We are required to be independent of the
Commission and to meet our other ethical responsibilities, in accordance with the relevant ethical
requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient
and appropriate to provide a basis for our audit opinion.
Emphasis of Matter
As discussed in Note 1, the financial statements present only the Fund and do not purport to, and do
not, present fairly the financial position of the Commission or the County of Riverside, California, as of
June 30, 2023, and the changes in financial position for the year then ended, in accordance with
accounting principles generally accepted in the United States of America. Our opinion is not modified
with respect to this matter.
1
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Responsibilities of Management for the Financial Statements
Management is responsible for the preparation and fair presentation of the financial statements in
accordance with accounting principles generally accepted in the United States of America; and for the
design, implementation, and maintenance of internal control relevant to the preparation and fair
presentation of financial statements that are free from material misstatement, whether due to fraud or
error.
Auditor's Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole
are free from material misstatement, whether due to fraud or error, and to issue an auditor's report
that includes our opinion. Reasonable assurance is a high level of assurance but is not absolute
assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS and
Government Auditing Standards will always detect a material misstatement when it exists. The risk of
not detecting a material misstatement resulting from fraud is higher than for one resulting from error,
as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of
internal control. Misstatements are considered material if there is a substantial likelihood that,
individually or in the aggregate, they would influence the judgment made by a reasonable user based on
the financial statements.
In performing an audit in accordance with GAAS and Government Auditing Standards, we:
• Exercise professional judgment and maintain professional skepticism throughout the audit.
• Identify and assess the risks of material misstatement of the financial statements, whether due
to fraud or error, and design and perform audit procedures responsive to those risks. Such
procedures include examining, on a test basis, evidence regarding the amounts and disclosures
in the financial statements.
• Obtain an understanding of internal control relevant to the audit in order to design audit
procedures that are appropriate in the circumstances, but not for the purpose of expressing an
opinion on the effectiveness of Commission's internal control. Accordingly, no such opinion is
expressed.
• Evaluate the appropriateness of accounting policies used and the reasonableness of significant
accounting estimates made by management, as well as evaluate the overall presentation of the
financial statements.
We are required to communicate with those charged with governance regarding, among other matters,
the planned scope and timing of the audit, significant audit findings, and certain internal control —related
matters that we identified during the audit.
Required Supplementary Information
Management has omitted the management's discussion and analysis that accounting principles
generally accepted in the United States of America require to be presented to supplement the basic
financial statements. Such missing information, although not a part of the basic financial statements, is
required by the Governmental Accounting Standards Board, who considers it to be an essential part of
financial reporting for placing the basic financial statements in an appropriate operational, economic, or
historical context. Our opinion on the basic financial statements is not affected by the missing
information.
2
225
Supplementary Information
Our audit was conducted for the purpose of forming an opinion on the financial statements that
collectively comprise the Fund's basic financial statements. The schedule listed in the table of contents is
presented for purposes of additional analysis and is not a required part of the basic financial statements.
Such information is the responsibility of management and was derived from and relates directly to the
underlying accounting and other records used to prepare the basic financial statements. The
information has been subjected to the auditing procedures applied in the audit of the basic financial
statements and certain additional procedures, including comparing and reconciling such information
directly to the underlying accounting and other records used to prepare the basic financial statements
or to the basic financial statements themselves, and other additional procedures in accordance with
GAAS. In our opinion, the schedule listed in the table of contents is fairly stated, in all material respects,
in relation to the basic financial statements as a whole.
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated October 31,
2023, on our consideration of the Commission's internal control over the Fund's financial reporting and
on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant
agreements and other matters. The purpose of that report is solely to describe the scope of our testing
of internal control over financial reporting and compliance and the results of that testing, and not to
provide an opinion on the effectiveness of the Commission's internal control over financial reporting or
on compliance related to the Fund. That report is an integral part of an audit performed in accordance
with Government Auditing Standards in considering the Commission's internal control over the Fund's
financial reporting and compliance.
Rancho Cucamonga, California
October 31, 2023
3
226
State of Good Repair Fund of the County of Riverside,
as Administered by the Riverside County Transportation Commission
Balance Sheet
June 30, 2023
Assets
Cash and investments
Accounts receivable
Interest receivable
Total assets
Liabilities and Fund Balance
$ 11,746,919
1,041,273
190,250
$ 12,978,442
Liabilities
Accounts payable
Due to other Commission funds
Total liabilities
Fund Balance
Restricted for unclaimed allocations
Restricted for allocations available for programming
Total fund balance
Total liabilities and fund balance
See Notes to Financial Statements.
$ 281,106
35,700
316,806
8,320,009
4,341,627
12,661,636
$ 12,978,442
4
227
State of Good Repair Fund of the County of Riverside,
as Administered by the Riverside County Transportation Commission
Statement of Revenues, Expenditures and Change in Fund Balance
Year Ended June 30, 2023
Revenues:
Sales taxes $ 4,364,613
Intergovernmental 312,610
Interest income 264,047
Total revenues 4,941,270
Expenditures:
Administration 426,910
Transit 3,127,171
Total expenditures 3,554,081
Net change in fund balance 1,387,189
Fund balance, beginning of year 11,274,447
Fund balance, end of year $ 12,661,636
See Notes to Financial Statements.
5
228
State of Good Repair Fund of the County of Riverside
as Administered by the Riverside County Transportation Commission
Notes to Financial Statements
June 30, 2023
Note 1. Nature of Operations and Significant Accounting Policies
The Riverside County Transportation Commission (the Commission), in its capacity as the transportation
planning agency for the County of Riverside, California (the County), is responsible for administering funds
provided through the State of Good Repair Program, which was created in 2017 under Chapter 5, (SB 1)
of the California statutes to provide additional revenues for transit infrastructure repair and service
improvements. The funds are derived from fuel sales tax and vehicle fee revenues and are budgeted
through legislation and appropriated to the State Controller's Office (the State) for allocation to local
agencies based on the State Transit Assistance formula.
The accounting policies of the State of Good Repair Fund (the Fund), a special revenue fund of the
Commission, conform to accounting principles generally accepted in the United States as applicable to
governmental units.
A summary of the Commission's significant accounting policies is as follows:
Presentation: The accompanying financial statements of the Fund are intended to present the financial
position and the changes in financial position of only that portion of the governmental activities of the
Commission that is attributable to the transactions of the Fund of the Commission. They do not purport to,
and do not, present fairly the financial position of the Commission or the County as of June 30, 2023 and
the related changes in its financial position for the year then ended, in conformity with accounting principles
generally accepted in the United States of America.
Basis of accounting: In accordance with the requirements for governmental funds, the modified accrual
basis of accounting and current resources measurement focus is followed in the Fund. Under this method
of accounting, expenditures are recorded when they are expected to be liquidated with expendable
available resources, and revenue is recorded when it becomes both measurable and available.
"Measurable" means the amount of the transaction can be determined, and "available" means collectible
within the current period or soon enough thereafter to be used to pay liabilities of the current period. For
this purpose, the Commission considers revenues to be available if they are collected within 180 days of
the end of the fiscal year. Those revenues susceptible to accrual include fuel sales tax, vehicle fee, and
interest revenue.
Allocations to local agencies: State of Good Repair funds are allocated to the operators within the
County. Public Utilities Code (PUC) Section 99313 allocates funds to regional transportation planning
agencies based on the ratio of area population to state population. PUC Section 99314 allocates funds to
public operators based on their share of fares and local support to other operators in the state. The
allocations must be made in a resolution adopted by the Commission.
Cash and investments: It is the Commission's policy to deposit all funds received in the Riverside County
Pooled Investment Fund (RCPIF) for investment until the funds are required for disbursement. Interest
income is earned while these funds are deposited.
Accounts receivable: Accounts receivable consist primarily of fuel sales tax and vehicle fee revenues
from the State of California not received as of June 30, 2023.
Due to other Commission funds: Due to other Commission funds represents payables from the State of
Good Repair program to the Commission for administrative allocation expenditures as of June 30, 2023.
6
229
State of Good Repair Fund of the County of Riverside
as Administered by the Riverside County Transportation Commission
Notes to Financial Statements
June 30, 2023
Note 1. Nature of Operations and Significant Accounting Policies (Continued)
Fund balance restrictions: The Fund reports restricted fund balances to show the level of constraint
governing the use of the funds as set forth by enabling State legislation. The restricted fund balance for
allocations available for programming represents amounts apportioned but not allocated to claimants. The
restricted fund balance for unclaimed allocations represents amounts allocated by the Commission and due
to claimants but not yet paid, as claimants have not yet provided the appropriate claim documentation to
the Commission as of June 30, 2023.
Expenditures: Expenditures represent funds disbursed to transit operators that have met the eligibility
requirements to receive State of Good Repair Program funds per PUC Sections 99313 and 99314. All
disbursements are to be used for transit purposes.
Note 2. Cash and Investments
Cash and investments at June 30, 2023 consist of the following:
Cash and investments with RCPIF
Cash in bank
$ 11,746,291
628
$ 11,746,919
The funds in the RCPIF are pooled with those of other entities in the RCPIF and invested in accordance
with the County's investment policy. The funds with the custodian are pooled with those of other
Commission operating funds and invested in accordance with the Commission's investment policy. These
pooled funds are carried at fair value. Investments in U.S.Treasury, federal agency, mortgage and asset -
backed, municipal, corporate, negotiable certificates of deposit, and commercial paper securities are
carried at fair value based on quoted market prices. Money market mutual funds are carried at fair value
based on each fund's share price. The pooled funds are not subject to level 1, 2 or 3 of the fair value
hierarchy prescribed by Governmental Accounting Standards Board Statement No. 72, Fair Value
Measurement and Application. The Commission is a voluntary participant in the RCPIF. An Investment
Oversight Committee has been established by the County, which acts as a regulator of the RCPIF. As of
June 30, 2023, the Fund had $11,746,291 invested in the RCPIF, with a weighted average maturity of 474
days. Additional information on investment types, fair value measurement and credit risk of the RCPIF may
be obtained from the County of Riverside Treasurer -Tax Collector located at 4080 Lemon Street, 4th Floor,
Riverside, California 92502 or by visiting the Treasurer -Tax Collector website at www.countytreasurer.org.
Interest rate risk: While the Commission does not have a formal policy related to the interest rate risk of
investments, the Commission's investment policy follows the California Government Code as it relates to
limits on investment maturities as a means of managing exposure to fair value losses arising from increasing
interest rates.
Credit risk: As of June 30, 2023 the Commission's investment in the RCPIF was rated Aaa/bf by Moody's
Investors Service and AAAf/S1 by Fitch Ratings. The Commission's investment policy only requires credit
quality ratings for repurchase agreements, U.S. corporate debt, commercial paper, bankers' acceptances,
and certificates of deposit.
7
230
State of Good Repair Fund of the County of Riverside
as Administered by the Riverside County Transportation Commission
Notes to Financial Statements
June 30, 2023
Note 3. Fund Balance
At June 30, 2023, amounts are restricted for apportioned and unallocated amounts and for unpaid
allocations by geographic area. For Western County transit programs, commuter rail and bus allocations
are in accordance with the Commission's policy.
Restricted for allocations available for programming:
Western County:
Commuter rail $ 1,054,969
Bus 2,315,082
Coachella Valley 911,576
Palo Verde Valley 60,000
4,341,627
Restricted for unclaimed allocations:
Western County:
Commuter rail
City of Banning
City of Beaumont
City of Corona
City of Riverside
Riverside Transit Agency
Coachella Valley:
SunLine Transit Agency
Palo Verde Valley:
Palo Verde Valley Transit Agency
964,074
45,722
175,671
407,250
399,357
2,997,849
3,233,355
96,731
8,320,009
Total fund balance $ 12,661,636
8
231
Supplementary Information
232
State of Good Repair Fund of the County of Riverside,
as Administered by the Riverside County Transportation Commission
Schedule of Allocations and Disbursements Approved During the Year
Year Ended June 30, 2023
California
Code of
Regulations
Current Year Amount Disbursed Section No.
Recipient Allocation (Accrual Reversal) Reference
Western County:
City of Banning $ 50,000 $ 24,903 6731
City of Beaumont 60,000 60,000 6731
City of Corona 150,000 25,880 6731
City of Riverside 50,000 5,091 6731
Riverside Transit Agency 2,055,839 2,895,553 6730
Commission Commuter Rail Program 1,050,785 - 6730
Total Western County 3,416,624 3,011,427
SunLine Transit Agency 900,000 102,929 6730
Palo Verde Valley Transit Agency 60,000 12,815 6730
Other - 426,910
$ 4,376,624 $ 3,554,081
9
233
EideBailly
CPAs & BUSINESS ADVISORS
Independent Auditor's Report on Internal Control over Financial Reporting and on Compliance and
Other Matters Based on an Audit of Financial Statements Performed in Accordance with
Government Auditing Standards
Board of Commissioners
Riverside County Transportation Commission
Riverside, California
We have audited, in accordance with the auditing standards generally accepted in the United States of
America and the standards applicable to financial audits contained in Government Auditing Standards,
issued by the Comptroller General of the United States (Governmental Auditing Standards), the financial
statements of the State of Good Repair Fund (the Fund) of the County of Riverside, California, as
administered by the Riverside County Transportation Commission (Commission), as of and for the year
ended June 30, 2023, and the related notes to the financial statements, and have issued our report
thereon dated October 31, 2023. Our report included an emphasis of matter paragraph indicating that
the financial statements present only the Fund and do not purport to, and do not, present fairly the
financial position of the Commission or the County of Riverside, California, as of June 30, 2023, and the
changes in its financial position for the year ended in accordance with accounting principles generally
accepted in the United States of America.
Report on Internal Control over Financial Reporting
In planning and performing our audit of the financial statements, we considered the Commission's
internal control over the Fund's financial reporting (internal control) as a basis for designing audit
procedures that are appropriate in the circumstances for the purpose of expressing our opinion on the
financial statements, but not for the purpose of expressing an opinion on the effectiveness of the
Commission's internal control related to the Fund. Accordingly, we do not express an opinion on the
effectiveness of the Commission's internal control related to the Fund.
A deficiency in internal control exists when the design or operation of a control does not allow
management or employees, in the normal course of performing their assigned functions, to prevent, or
detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a
combination of deficiencies, in internal control, such that there is a reasonable possibility that a material
misstatement of the Fund's financial statements will not be prevented, or detected and corrected, on a
timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control
that is less severe than a material weakness, yet important enough to merit attention by those charged
with governance.
Our consideration of internal control was for the limited purpose described in the first paragraph of this
section and was not designed to identify all deficiencies in internal control that might be material
weaknesses or significant deficiencies. Given these limitations, during our audit, we did not identify any
deficiencies in internal control that we consider to be material weaknesses. However, material
weaknesses or significant deficiencies may exist that have not been identified.
10
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Report on Compliance and Other Matters
As part of obtaining reasonable assurance about whether the Fund's financial statements are free from
material misstatement, we performed tests of its compliance with certain provisions of laws,
regulations, contracts and grant agreements, noncompliance with which could have a direct and
material effect on the financial statements. However, providing an opinion on compliance with those
provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The
results of our tests disclosed no instances of noncompliance or other matters that are required to be
reported under Government Auditing Standards.
Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control and
compliance and the results of that testing, and not to provide an opinion on the effectiveness of the
Commission's internal control or on compliance as it relates to the Fund. This report is an integral part of
an audit performed in accordance with Government Auditing Standards in considering the Commission's
internal control and compliance related to the Fund. Accordingly, this communication is not suitable for
any other purpose.
Rancho Cucamonga, California
October 31, 2023
11
235
ATTACHMENT 5
Proposition 1B Rehabilitation, Safety and Security Project Accounts,
Accounts of the Riverside County Transportation Commission
Financial and Compliance Reports
Years Ended June 30, 2023 and 2022
236
Contents
Independent Auditor's Report 1-3
Financial Statements
Balance Sheets 4
Statements of Revenues, Expenditures and Change in Fund Balance 5
Notes to Financial Statements 6-8
Independent Auditor's Report on Internal Control Over Financial Reporting and on
Compliance and Other Matters Based on an Audit of Financial Statements
Performed in Accordance With Government Auditing Standards
9-10
237
EideBailly
CPAs & BUSINESS ADVISORS
Independent Auditor's Report
Board of Commissioners
Riverside County Transportation Commission
Riverside, California
Report on the Audit of the Financial Statements
Opinion
We have audited the financial statements of the Proposition 1B Rehabilitation, Safety and Security
Project Accounts (the Accounts), Accounts of the Riverside County Transportation Commission
(Commission), as of and for the years ended June 30, 2023 and 2022, and the related notes to the
financial statements, as listed in the table of contents.
In our opinion, the accompanying financial statements referred to above present fairly, in all material
respects, the respective financial position of the Accounts of the Commission, as of June 30, 2023 and
2022, and the respective changes in financial position for the years then ended in accordance with
accounting principles generally accepted in the United States of America.
Basis for Opinion
We conducted our audit in accordance with auditing standards generally accepted in the United States
of America (GAAS) and the standards applicable to financial audits contained in Government Auditing
Standards (Government Auditing Standards), issued by the Comptroller General of the United States.
Our responsibilities under those standards are further described in the Auditor's Responsibilities for the
Audit of the Financial Statements section of our report. We are required to be independent of the
Commission and to meet our other ethical responsibilities, in accordance with the relevant ethical
requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient
and appropriate to provide a basis for our audit opinion.
Emphasis of Matter
As discussed in Note 1 to the financial statements, the financial statements present only the Accounts
and do not purport to, and do not, present fairly the financial position of the Commission as of June 30,
2023 and 2022, and the respective changes in financial position for the years then ended, in accordance
with accounting principles generally accepted in the United States of America. Our opinion is not
modified with respect to this matter.
1
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Responsibilities of Management for the Financial Statements
Management is responsible for the preparation and fair presentation of the financial statements in
accordance with accounting principles generally accepted in the United States of America; and for the
design, implementation, and maintenance of internal control relevant to the preparation and fair
presentation of financial statements that are free from material misstatement, whether due to fraud or
error.
Auditor's Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole
are free from material misstatement, whether due to fraud or error, and to issue an auditor's report
that includes our opinion. Reasonable assurance is a high level of assurance but is not absolute
assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS and
Government Auditing Standards will always detect a material misstatement when it exists. The risk of
not detecting a material misstatement resulting from fraud is higher than for one resulting from error,
as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of
internal control. Misstatements are considered material if there is a substantial likelihood that,
individually or in the aggregate, they would influence the judgment made by a reasonable user based on
the financial statements.
In performing an audit in accordance with GAAS and Government Auditing Standards, we:
• Exercise professional judgment and maintain professional skepticism throughout the audit.
• Identify and assess the risks of material misstatement of the financial statements, whether due
to fraud or error, and design and perform audit procedures responsive to those risks. Such
procedures include examining, on a test basis, evidence regarding the amounts and disclosures
in the financial statements.
• Obtain an understanding of internal control relevant to the audit in order to design audit
procedures that are appropriate in the circumstances, but not for the purpose of expressing an
opinion on the effectiveness of the Commission's internal control. Accordingly, no such opinion
is expressed.
• Evaluate the appropriateness of accounting policies used and the reasonableness of significant
accounting estimates made by management, as well as evaluate the overall presentation of the
financial statements.
We are required to communicate with those charged with governance regarding, among other matters,
the planned scope and timing of the audit, significant audit findings, and certain internal control —related
matters that we identified during the audit.
Required Supplementary Information
Management has omitted the management's discussion and analysis that accounting principles
generally accepted in the United States of America require to be presented to supplement the basic
financial statements. Such missing information, although not a part of the basic financial statements, is
required by the Governmental Accounting Standards Board, who considers it to be an essential part of
financial reporting for placing the basic financial statements in an appropriate operational, economic, or
historical context. Our opinion on the basic financial statements is not affected by the missing
information.
2
239
Supplementary Information
Our audit was conducted for the purpose of forming an opinion on the financial statements that
collectively comprise the Account's basic financial statements. The statements listed in the table of
contents as supplementary information are presented for purposes of additional analysis and are not a
required part of the basic financial statements. Such information is the responsibility of management
and was derived from and relates directly to the underlying accounting and other records used to
prepare the basic financial statements. The information has been subjected to the auditing procedures
applied in the audit of the basic financial statements and certain additional procedures, including
comparing and reconciling such information directly to the underlying accounting and other records
used to prepare the basic financial statements or to the basic financial statements themselves, and
other additional procedures in accordance with GAAS. In our opinion, the statements listed in the table
of contents are fairly stated, in all material respects, in relation to the basic financial statements as a
whole.
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated October 31,
2023, on our consideration of the Commission's internal control over the Account's financial reporting
and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant
agreements and other matters. The purpose of that report is solely to describe the scope of our testing
of internal control over financial reporting and compliance and the results of that testing, and not to
provide an opinion on the effectiveness of the Commission's internal control over financial reporting or
on compliance related to the Accounts. That report is an integral part of an audit performed in
accordance with Government Auditing Standards in considering the Commission's internal control over
the Account's financial reporting and compliance.
Rancho Cucamonga, California
October 31, 2023
3
240
Proposition 1B Rehabilitation, Safety and Security Project Accounts,
Accounts of the Riverside County Transportation Commission
Balance Sheets
June 30, 2023 and 2022
2023 2022
Assets PTMISEA PTMISEA
Cash and investments in Riverside County Pooled
Investment Fund $ 65,978 $ 624,422
Interest receivable - 268
Total assets $ 65,978 $ 624,690
Liabilities and Fund Balance
Liabilities
Accounts payable $ 65,978 $ 46,595
Total liabilities 65,978 46,595
Fund Balance
Restricted:
Rail projects
Total fund balance
Total liabilities and fund balance
See Notes to Financial Statements.
578,095
578,095
$ 65,978 $ 624,690
Proposition 1B Rehabilitation, Safety and Security Project Accounts,
Accounts of the Riverside County Transportation Commission
Statements of Revenues, Expenditures and Change in Fund Balance
Years Ended June 30, 2023 and 2022
2023 2022
PTMISEA PTMISEA
Revenues:
Interest $ 8,820 $ 1,425
Total revenues 8,820 1,425
Expenditures:
Rail 586,915 453,855
Net change in account fund balance
Fund balance, beginning of year
Fund balance, end of year
See Notes to Financial Statements.
(578,095) (452,430)
578,095 1,030,525
$ $ 578,095
Proposition 1B Rehabilitation, Safety and Security Project Accounts,
Accounts of the Riverside County Transportation Commission
Notes to Financial Statements
June 30, 2023 and 2022
Note 1. Nature of Operations and Summary of Significant Accounting Policies
Nature of operations: On November 7, 2006, the voters of California approved the Highway Safety, Traffic
Reduction, Air Quality, and Port Security Bond Act of 2006 (Proposition 1 B). Proposition 1B included a state
program of funding in the amount of $4 billion and $1 billion to be deposited in the Public Transportation
Modernization, Improvement, and Service Enhancement Account (PTMISEA) and Transit System Safety,
Security, and Disaster Response Account (TSSSDRA), respectively. The California Transit Security Grant
Program —California Transit Assistance Fund (CTSGP-CTAF) is a TSSSDRA program. The PTMISEA
funds, which are administered by the California Department of Transportation (Caltrans), and the CTSGP-
CTAF funds, which are administered by the California Emergency Management Agency (CaIEMA), are
made available to project sponsors in California for eligible public transportation projects and related
security and safety projects, respectively.
The Riverside County Transportation Commission (the Commission) owns and operates nine commuter
rail stations and a transit center in Riverside County (the County). As a project sponsor, the Commission
has applied for and obtained approval for PTMISEA and CTSGP-CTAF funds for various projects related
to its commuter rail stations. These funds are accounted for in the Measure A Western County Rail and
Coachella Valley Station Development Special Revenue Funds in project accounts (the Accounts). The
revenue to the Accounts is derived from allocations approved by the Controller of the State of California
(the Controller).
The accounting policies of the Commission conform to accounting principles generally accepted in the
United States of America as applicable to governmental units.
A summary of the Commission's significant accounting policies is as follows:
Presentation: The accompanying financial statements of the Accounts are intended to present the financial
position and the changes in financial position of only that portion of the governmental activities of the
Commission that is attributable to the transactions of the PTMISEA and CTSGP-CTAF Accounts of the
Commission. They do not purport to, and do not, present fairly the financial position of the Commission as
of June 30, 2023 and 2022 and the changes in its financial position for the years then ended, in conformity
with accounting principles generally accepted in the United States of America.
Basis of accounting: In accordance with the requirements for governmental funds, the modified accrual
basis of accounting is followed in the PTMISEA and CTSGP-CTAF Accounts. Under the modified accrual
basis of accounting, expenditures are recorded when they are expected to be liquidated with expendable
available resources, and revenue is recorded when it becomes both measurable and available.
"Measurable" means the amount of the transaction can be determined, and "available" means collectible
within the current period, or soon enough thereafter to be used to pay liabilities of the current period. For
this purpose, the Commission considers revenues to be available if they are collected within 180 days of
the end of the current fiscal period. Those revenues susceptible to accrual include PTMISEA and CTSGP-
CTAF allocations and interest revenue.
For the years ended June 30, 2023 and 2022, the Commission did not recognize an allocation of revenues,
respectively, for the Station Rehabilitation and Coachella Valley Station Development, or Station Security
projects.
6
243
Proposition 1B Rehabilitation, Safety and Security Project Accounts,
Accounts of the Riverside County Transportation Commission
Notes to Financial Statements
June 30, 2023 and 2022
Note 1. Nature of Operations and Summary of Significant Accounting Policies (Continued)
Funding: Project sponsors may submit applications for funding of eligible transit capital projects to Caltrans
or CaIEMA, which approve projects for funding related to PTMISEA and CTSGP-CTAF, respectively.
PTMISEA eligible projects include rehabilitation, safety or modernization improvements; capital service
enhancements or expansions; new capital projects; bus rapid transit improvements; and rolling stock
procurement, rehabilitation, expansion or replacement. CTSGP-CTAF eligible projects include capital
projects that provide increased protection against a security or safety threat; increase the capacity of transit
operators to prepare for disaster -response transportation systems to move people, goods, emergency
personnel and equipment in the aftermath of a disaster; and other allowable costs under California
Government Code 16727(a). The Controller will disburse funds upon receipt of the approved PTMISEA and
CTSGP-CTAF projects. Funds must be encumbered within three years of receipt and must be expended
within three years of being encumbered.
Cash: It is the Commission's policy to deposit all funds received in the Riverside County Pooled Investment
Fund (RCPIF) for investment until the funds are required for disbursement. Interest income is earned while
these funds are deposited.
Fund balance restrictions: The Accounts report restricted account fund balances to show the level of
constraint governing the use of the funds. Restricted account fund balances are restricted for specific
purposes by third parties.
Expenditures: Expenditures represent rail capital projects as identified in PTMISEA and CTSGP-CTAF
applications submitted by the Commission.
For the year ended June 30, 2023, the Commission incurred qualifying expenditures of $586,915 for the
Coachella Valley Station Development project. For the year ended June 30, 2022, the Commission incurred
qualifying expenditures $453,855 for the Coachella Valley Station Development project.
Note 2. Cash and Investments With County Treasurer
The funds in the RCPIF are pooled with those of other entities and invested in accordance with the County's
investment policy. These pooled funds are carried at fair value. Investments in U.S.Treasury, federal
agency, mortgage and asset -backed, municipal, corporate, negotiable certificates of deposit, and
commercial paper securities are carried at fair value based on quoted market prices. Money market mutual
funds are carried at fair value based on each fund's share price. The pooled funds are not subject to level
1, 2 or 3 of the fair value hierarchy prescribed by Governmental Accounting Standards Board Statement
No. 72, Fair Value Measurement and Application. The Commission is a voluntary participant in the pool.
An Investment Oversight Committee has been established by the County, which acts as a regulator of the
pool.
7
244
Proposition 1B Rehabilitation, Safety and Security Project Accounts,
Accounts of the Riverside County Transportation Commission
Notes to Financial Statements
June 30, 2023 and 2022
Note 2. Cash and Investments With County Treasurer (Continued)
As of June 30, 2023 and 2022, the Account has $65,978 and $624,422, respectively, included in the
Commission's investment with the RCPIF, with an average maturity of 474 days and 434 days, respectively.
Additional information on investment types, fair value measurement and credit risk of the RCPIF may be
obtained from the County of Riverside Treasurer -Tax Collector located at 4080 Lemon Street, 4th Floor,
Riverside, California 92502 or by visiting the Treasurer -Tax Collector website at www.countytreasurer.org.
Interest rate risk: While the Commission does not have a formal policy related to the interest rate risk of
investments, the Commission's investment policy follows the California Government Code as it relates to
limits on investment maturities as a means of managing exposure to fair value losses arising from increasing
interest rates.
Credit risk: As of June 30, 2023 and 2022 the Commission's investment in the RCPIF was rated Aaa/bf
by Moody's Investors Service and AAAf/S1 by Fitch Ratings. The Commission's investment policy only
requires credit quality ratings for repurchase agreements, U.S. corporate debt, commercial paper, bankers'
acceptances, and certificates of deposit.
8
245
EideBailly
CPAs & BUSINESS ADVISORS
Independent Auditor's Report on Internal Control over Financial Reporting and on Compliance and
Other Matters Based on an Audit of Financial Statements Performed in Accordance with
Government Auditing Standards
Board of Commissioners
Riverside County Transportation Commission
Riverside, California
We have audited, in accordance with the auditing standards generally accepted in the United States of
America and the standards applicable to financial audits contained in Government Auditing Standards,
issued by the Comptroller General of the United States (Government Auditing Standards), the financial
statements of the Proposition 1B Rehabilitation, Safety and Security Project Accounts (the Accounts),
Accounts of the Riverside County Transportation Commission (Commission), as of and for the year
ended June 30, 2023, and the related notes to the financial statements, and have issued our report
thereon dated October 31, 2023. Our report included an emphasis of matter paragraph indicating that
the financial statements present only the Accounts and do not purport to, and do not, present fairly the
financial position of the Commission as of June 30, 2023, and the changes in its financial position for the
year ended in accordance with accounting principles generally accepted in the United States of America.
Report on Internal Control over Financial Reporting
In planning and performing our audit of the financial statements, we considered the Commission's
internal control over the Accounts' financial reporting (internal control) as a basis for designing audit
procedures that are appropriate in the circumstances for the purpose of expressing our opinion on the
financial statements, but not for the purpose of expressing an opinion on the effectiveness of the
Commission's internal control related to the Accounts. Accordingly, we do not express an opinion on the
effectiveness of the Commission's internal control related to the Accounts.
A deficiency in internal control exists when the design or operation of a control does not allow
management or employees, in the normal course of performing their assigned functions, to prevent, or
detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a
combination of deficiencies, in internal control, such that there is a reasonable possibility that a material
misstatement of the Accounts' financial statements will not be prevented, or detected and corrected, on
a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control
that is less severe than a material weakness, yet important enough to merit attention by those charged
with governance.
Our consideration of internal control was for the limited purpose described in the first paragraph of this
section and was not designed to identify all deficiencies in internal control that might be material
weaknesses or significant deficiencies. Given these limitations, during our audit, we did not identify any
deficiencies in internal control that we consider to be material weaknesses. However, material
weaknesses or significant deficiencies may exist that have not been identified.
9
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Report on Compliance and Other Matters
As part of obtaining reasonable assurance about whether the Accounts' financial statements are free
from material misstatement, we performed tests of its compliance with certain provisions of laws,
regulations, contracts and grant agreements, noncompliance with which could have a direct and
material effect on the Accounts' financial statements. However, providing an opinion on compliance
with those provisions was not an objective of our audit, and accordingly, we do not express such an
opinion. The results of our tests disclosed no instances of noncompliance or other matters that are
required to be reported under Government Auditing Standards.
Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control and
compliance and the results of that testing, and not to provide an opinion on the effectiveness of the
Commission's internal control or on compliance as it relates to the Accounts. This report is an integral
part of an audit performed in accordance with Government Auditing Standards in considering the
Commission's internal control and compliance related to the Accounts. Accordingly, this communication
is not suitable for any other purpose.
Rancho Cucamonga, California
October 31, 2023
10
247
ATTACHMENT 6
Low Carbon Transit Operations Program Account, an Account of the
Riverside County Transportation Commission
Financial and Compliance Reports
Years Ended June 30, 2023 and 2022
248
Contents
Independent Auditor's Report 1-3
Financial Statements
Balance Sheets 4
Statements of Revenues, Expenditures and Change in Fund Balance 5
Notes to Financial Statements 6-7
Independent Auditor's Report on Internal Control Over Financial Reporting and on
Compliance and Other Matters Based on an Audit of Financial Statements Performed
in Accordance With Government Auditing Standards
8-9
249
EideBailly
CPAs & BUSINESS ADVISORS
Independent Auditor's Report
Board of Commissioners
Riverside County Transportation Commission
Riverside, California
Report on the Audit of the Financial Statements
Opinion
We have audited the financial statements of the Low Carbon Transit Operations Program (LCTOP)
Account, an Account of the Riverside County Transportation Commission (Commission) as of and for the
years ended June 30, 2023 and 2022, and the related notes to the financial statements, as listed in the
table of contents.
In our opinion, the accompanying financial statements referred to above present fairly, in all material
respects, the respective financial position of the LCTOP Account of the Commission as of June 30, 2023
and 2022, and the respective changes in financial position for the years then ended in accordance with
accounting principles generally accepted in the United States of America.
Basis for Opinion
We conducted our audit in accordance with auditing standards generally accepted in the United States
of America (GAAS) and the standards applicable to financial audits contained in Government Auditing
Standards (Government Auditing Standards), issued by the Comptroller General of the United States.
Our responsibilities under those standards are further described in the Auditor's Responsibilities for the
Audit of the Financial Statements section of our report. We are required to be independent of the
Commission and to meet our other ethical responsibilities, in accordance with the relevant ethical
requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient
and appropriate to provide a basis for our audit opinion.
Emphasis of Matter
As discussed in Note 1 to the financial statements, the financial statements present only the LCTOP
Account and do not purport to, and do not, present fairly the financial position of the Commission as of
June 30, 2023 and 2022, and the changes in financial position for the years then ended, in accordance
with accounting principles generally accepted in the United States of America. Our opinion is not
modified with respect to this matter.
1
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Responsibilities of Management for the Financial Statements
Management is responsible for the preparation and fair presentation of the financial statements in
accordance with accounting principles generally accepted in the United States of America; and for the
design, implementation, and maintenance of internal control relevant to the preparation and fair
presentation of financial statements that are free from material misstatement, whether due to fraud or
error.
Auditor's Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole
are free from material misstatement, whether due to fraud or error, and to issue an auditor's report
that includes our opinion. Reasonable assurance is a high level of assurance but is not absolute
assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS and
Government Auditing Standards will always detect a material misstatement when it exists. The risk of
not detecting a material misstatement resulting from fraud is higher than for one resulting from error,
as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of
internal control. Misstatements are considered material if there is a substantial likelihood that,
individually or in the aggregate, they would influence the judgment made by a reasonable user based on
the financial statements.
In performing an audit in accordance with GAAS and Government Auditing Standards, we:
• Exercise professional judgment and maintain professional skepticism throughout the audit.
• Identify and assess the risks of material misstatement of the financial statements, whether due
to fraud or error, and design and perform audit procedures responsive to those risks. Such
procedures include examining, on a test basis, evidence regarding the amounts and disclosures
in the financial statements.
• Obtain an understanding of internal control relevant to the audit in order to design audit
procedures that are appropriate in the circumstances, but not for the purpose of expressing an
opinion on the effectiveness of the Commission's internal control. Accordingly, no such opinion
is expressed.
• Evaluate the appropriateness of accounting policies used and the reasonableness of significant
accounting estimates made by management, as well as evaluate the overall presentation of the
financial statements.
We are required to communicate with those charged with governance regarding, among other matters,
the planned scope and timing of the audit, significant audit findings, and certain internal control —related
matters that we identified during the audit.
Required Supplementary Information
Management has omitted the management's discussion and analysis that accounting principles
generally accepted in the United States of America require to be presented to supplement the basic
financial statements. Such missing information, although not a part of the basic financial statements, is
required by the Governmental Accounting Standards Board, who considers it to be an essential part of
financial reporting for placing the basic financial statements in an appropriate operational, economic, or
historical context. Our opinion on the basic financial statements is not affected by the missing
information.
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Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated October 31,
2023, on our consideration of the Commission's internal control over the LCTOP Account's financial
reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and
grant agreements and other matters. The purpose of that report is solely to describe the scope of our
testing of internal control over financial reporting and compliance and the results of that testing, and
not to provide an opinion on the effectiveness of the Commission's internal control over financial
reporting or on compliance related to the LCTOP Account. That report is an integral part of an audit
performed in accordance with Government Auditing Standards in considering the Commission's internal
control over the LCTOP Account's financial reporting and compliance.
Rancho Cucamonga, California
October 31, 2023
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252
Low Carbon Transit Operations Program Account,
an Account of the Riverside County Transportation Commission
Balance Sheets
June 30, 2023 and 2022
2023 2022
Assets
Cash and investments in Riverside County Pooled
Investment Fund $ 2,403,289 $
Interest receivable 22,093
Total assets $ 2,425,382 $
Liabilities and Fund Balance
Liabilities
Accounts payable $ 82,463 $
Total liabilities 82,463
Fund Balance
Restricted:
Rail projects 2,342,919
Total fund balance 2,342,919
Total liabilities and fund balance $ 2,425,382 $
See Notes to Financial Statements.
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Low Carbon Transit Operations Program Account,
an Account of the Riverside County Transportation Commission
Statements of Revenues, Expenditures and Change in Fund Balance
Years Ended June 30, 2023 and 2022
2023 2022
Revenues:
State allocations $ 2,406,486 $ 864,540
Interest 60,102 670
Total revenues 2,466,588 865,210
Expenditures:
Rail projects
123,669 865,210
Net change in fund balance 2,342,919
Fund balance, beginning of year
Fund balance, end of year $ 2,342,919 $
See Notes to Financial Statements.
5
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Low Carbon Transit Operations Program Account,
an Account of the Riverside County Transportation Commission
Notes to Financial Statements
June 30, 2023 and 2022
Note 1. Nature of Operations and Summary Significant Accounting Policies
Nature of Operations: In 2014, the California Legislature established Senate Bill 862 (SB 862), Low Carbon
Transit Operations Program (LCTOP), one of several programs that is part of the Transit, Affordable Housing, and
Sustainable Communities Program. LCTOP was created to provide operating and capital assistance for transit
agencies to reduce greenhouse gas emissions and improve mobility, with a priority on serving disadvantaged
communities. For agencies whose service area includes disadvantaged communities, at least 50 percent of the
total moneys received shall be expended on projects that will benefit disadvantaged communities.
The accounting policies of the Riverside County Transportation Commission (Commission) conform to accounting
principles generally accepted in the United States as applicable to governmental units.
A summary of the Commission's significant accounting policies is as follows:
Presentation: The accompanying financial statements of the LCTOP Account are intended to present the financial
position and the changes in financial position of only that portion of the governmental activities of the Commission
that is attributable to the transactions of the LCTOP Account of the Commission. They do not purport to, and do
not, present fairly the financial position of the Commission as of June 30, 2023 and 2022 and the changes in its
financial position for the years then ended, in conformity with accounting principles generally accepted in the United
States of America.
Basis of accounting: In accordance with the requirements for governmental funds, the modified accrual basis of
accounting is followed in the LCTOP Account. Under the modified accrual basis of accounting, expenditures are
recorded when they are expected to be liquidated with expendable available resources, and revenue is recorded
when it becomes both measurable and available. "Measurable" means the amount of the transaction can be
determined, and "available" means collectible within the current period or soon enough thereafter to be used to pay
liabilities of the current period. For this purpose, the Commission considers revenues to be available if they are
collected within 180 days of the end of the current fiscal period. Those revenues susceptible to accrual include
LCTOP Account allocations and interest revenue.
For the years ended June 30, 2023 and 2022 the Commission recognized revenues related to an allocation of
$2,406,486 and $864,540, respectively, for the Perris Valley Line station operations and rehabilitation.
Funding: Project sponsors may submit expenditure proposals for funding of LCTOP to Caltrans and the California
Air Resources Board to determine compliance with the requirements of SB 862 and the LCTOP guidelines. Caltrans
submits a final list of approved expenditures to the State Controller's Office, and the approved amounts of funds
will be available for release, not to exceed 75 percent of each eligible recipient's share of the full appropriation, with
the remaining 25 percent available for release by fiscal year end.
Cash: It is the Commission's policy to deposit all funds received in the Riverside County Pooled Investment Fund
(RCPIF) for investment until the funds are required for disbursement. Interest income is earned while these funds
are deposited.
Fund balance restrictions: The LCTOP Account reports restricted account fund balance to show the level of
constraint governing the use of the funds. Restricted account fund balances are restricted for specific purposes by
third parties.
Expenditures: Expenditures represent rail projects as identified in the LCTOP application submitted by the
Commission.
For the years ended June 30, 2023 and 2022, the Commission incurred qualifying expenditures of $123,669 and
$865,210, respectively, for the rail recovery project and Perris Valley Line station operations and rehabilitation,
respectively.
2§5
Low Carbon Transit Operations Program Account,
an Account of the Riverside County Transportation Commission
Notes to Financial Statements
June 30, 2023 and 2022
Note 2. Cash and Investments with County Treasurer
The funds in the RCPIF are pooled with those of other entities and invested in accordance with the County's
investment policy. These pooled funds are carried at fair value. Investments in U.S. Treasury, federal agency,
mortgage and asset -backed, municipal, corporate, negotiable certificates of deposit, and commercial paper
securities are carried at fair value based on quoted market prices. Money market mutual funds are carried at fair
value based on each fund's share price. The pooled funds are not subject to level 1, 2 or 3 of the fair value hierarchy
prescribed by Governmental Accounting Standards Board Statement No. 72, Fair Value Measurement and
Application. The Commission is a voluntary participant in the pool. An Investment Oversight Committee has been
established by the County, which acts as a regulator of the pool. As of June 30, 2023 and 2022, the LCTOP Account
has $2,403,289 and $0, respectively, in the Commission's investment with the RCPIF, with an average maturity of
474 days and 434 days, respectively. Additional information on investment types, fair value measurement and credit
risk of the RCPIF may be obtained from the County of Riverside Treasurer -Tax Collector located at 4080 Lemon
Street, 41h Floor, Riverside, California 92502 or by visiting the Treasurer -Tax Collector website at
www.countytreasurer.org.
Interest rate risk: While the Commission does not have a formal policy related to the interest rate risk of
investments, the Commission's investment policy follows the California Government Code as it relates to limits on
investment maturities as a means of managing exposure to fair value losses arising from increasing interest rates.
Credit risk: As of June 30, 2023 and 2022 the Commission's investment in the RCPIF was rated Aaa/bf by Moody's
Investors Service and AAAf/S1 by Fitch Ratings. The Commission's investment policy only requires credit quality
ratings for repurchase agreements, U.S. corporate debt, commercial paper, bankers' acceptances, and certificates
of deposit.
26
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CPAs & BUSINESS ADVISORS
Independent Auditor's Report on Internal Control over Financial Reporting and on Compliance and
Other Matters Based on an Audit of Financial Statements Performed in Accordance with
Government Auditing Standards
Board of Commissioners
Riverside County Transportation Commission
Riverside, California
We have audited, in accordance with the auditing standards generally accepted in the United States of
America and the standards applicable to financial audits contained in Government Auditing Standards,
issued by the Comptroller General of the United States (Government Auditing Standards), the financial
statements of the Low Carbon Transit Operations Program (LCTOP) Account, an Account of the Riverside
County Transportation Commission (Commission), as of and for the year ended June 30, 2023, and the
related notes to the financial statements, and have issued our report thereon dated October 31, 2023.
Our report included an emphasis of matter indicating that the financial statements present only the
LCTOP Account and do not purport to, and do not, present fairly the financial position of the
Commission as of June 30, 2023, and the changes in its financial position for the year then ended, in
accordance with accounting principles generally accepted in the United States of America.
Report on Internal Control over Financial Reporting
In planning and performing our audit of the financial statements, we considered the Commission's
internal control over the LCTOP Account's financial reporting (internal control) as a basis for designing
audit procedures that are appropriate in the circumstances for the purpose of expressing our opinion on
the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the
Commission's internal control related to the LCTOP Account. Accordingly, we do not express an opinion
on the effectiveness of the Commission's internal control related to the LCTOP Account.
A deficiency in internal control exists when the design or operation of a control does not allow
management or employees, in the normal course of performing their assigned functions, to prevent, or
detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a
combination of deficiencies, in internal control, such that there is a reasonable possibility that a material
misstatement of the LCTOP Account financial statements will not be prevented, or detected and
corrected, on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in
internal control that is less severe than a material weakness, yet important enough to merit attention by
those charged with governance.
Our consideration of internal control was for the limited purpose described in the first paragraph of this
section and was not designed to identify all deficiencies in internal control that might be material
weaknesses or significant deficiencies. Given these limitations, during our audit, we did not identify any
deficiencies in internal control that we consider to be material weaknesses. However, material
weaknesses or significant deficiencies may exist that have not been identified.
8
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Report on Compliance and Other Matters
As part of obtaining reasonable assurance about whether the LCTOP Account financial statements are
free from material misstatement, we performed tests of the Commission's compliance with certain
provisions of laws, regulations, contracts and grant agreements, noncompliance with which could have a
direct and material effect on the LCTOP Account financial statements. However, providing an opinion on
compliance with those provisions was not an objective of our audit, and accordingly, we do not express
such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that
are required to be reported under Government Auditing Standards.
Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control and
compliance and the results of that testing, and not to provide an opinion on the effectiveness of the
Commission's internal control or on compliance as it relates to the LCTOP Account. This report is an
integral part of an audit performed in accordance with Government Auditing Standards in considering
the Commission's internal control and compliance related to the LCTOP Account. Accordingly, this
communication is not suitable for any other purpose.
Rancho Cucamonga, California
October 31, 2023
9
258
ATTACHMENT 7
Single Audit Report
Fiscal Year Ended June 30, 2023
Riverside County
Transportation Commission
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259
Riverside County Transportation Commission
Table of Contents
Fiscal Year Ended June 30, 2023
Independent Auditor's Report on Internal Control over Financial Reporting and on Compliance
and Other Matters Based on an Audit of Financial Statements Performed in Accordance with
Government Auditing Standards 1
Independent Auditor's Report on Compliance for the Major Federal Program; Report on Internal
Control Over Compliance; and Report on Schedule of Expenditures of Federal Awards Required by
the Uniform Guidance 3
Schedule of Expenditures of Federal Awards 6
Notes to Schedule of Expenditures of Federal Awards 7
Schedule of Findings and Questioned Costs
Section I — Summary of Auditor's Results 9
Section II — Financial Statement Findings 10
Section II I — Federal Award Findings and Questioned Costs 11
Summary Schedule of Prior Audit Findings 12
260
EideBailly
CPAs & BUSINESS ADVISORS
Independent Auditor's Report on Internal Control over Financial Reporting and on Compliance and
Other Matters Based on an Audit of Financial Statements Performed in Accordance with
Government Auditing Standards
Board of Commissioners
Riverside County Transportation Commission
Riverside, California
We have audited, in accordance with the auditing standards generally accepted in the United States of
America and the standards applicable to financial audits contained in Government Auditing Standards
issued by the Comptroller General of the United States, the financial statements of the governmental
activities, the business -type activities, each major fund, and the aggregate remaining fund information
of the Riverside County Transportation Commission (Commission) as of and for the year ended June 30,
2023, and the related notes to the financial statements, which collectively comprise the Commission's
basic financial statements, and have issued our report thereon dated October 31, 2023. Our report
included an emphasis of matter paragraph regarding the Commission's adoption of Governmental
Accounting Standards Board (GASB) Statement No. 96, Subscription -Based Information Technology
Arrangements, for the year ended June 30, 2023.
Report on Internal Control over Financial Reporting
In planning and performing our audit of the financial statements, we considered the Commission's
internal control over financial reporting (internal control) as a basis for designing audit procedures that
are appropriate in the circumstances for the purpose of expressing our opinions on the financial
statements, but not for the purpose of expressing an opinion on the effectiveness of the Commission's
internal control. Accordingly, we do not express an opinion on the effectiveness of the Commission's
internal control.
A deficiency in internal control exists when the design or operation of a control does not allow
management or employees, in the normal course of performing their assigned functions, to prevent, or
detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a
combination of deficiencies, in internal control, such that there is a reasonable possibility that a material
misstatement of the Commission's financial statements will not be prevented, or detected and
corrected, on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in
internal control that is less severe than a material weakness, yet important enough to merit attention by
those charged with governance.
Our consideration of internal control was for the limited purpose described in the first paragraph of this
section and was not designed to identify all deficiencies in internal control that might be material
weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any
deficiencies in internal control that we consider to be material weaknesses. However, material
weaknesses or significant deficiencies may exist that have not been identified.
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Report on Compliance and Other Matters
As part of obtaining reasonable assurance about whether the Commission's financial statements are
free from material misstatement, we performed tests of its compliance with certain provisions of laws,
regulations, contracts, and grant agreements, noncompliance with which could have a direct and
material effect on the financial statements. However, providing an opinion on compliance with those
provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The
results of our tests disclosed no instances of noncompliance or other matters that are required to be
reported under Government Auditing Standards.
Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control and
compliance and the results of that testing, and not to provide an opinion on the effectiveness of the
Commission's internal control or on compliance. This report is an integral part of an audit performed in
accordance with Government Auditing Standards in considering the Commission's internal control and
compliance. Accordingly, this communication is not suitable for any other purpose.
Rancho Cucamonga, California
October 31, 2023
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262
EideBailly
CPAs & BUSINESS ADVISORS
Independent Auditor's Report on Compliance for the Major Federal Program; Report on Internal
Control Over Compliance; and Report on Schedule of Expenditures of Federal Awards
Required by the Uniform Guidance
Board of Commissioners
Riverside County Transportation Commission
Riverside, California
Report on Compliance for the Major Federal Program
Opinion on Each Major Federal Program
We have audited the Riverside County Transportation Commission's (Commission) compliance with the
types of compliance requirements identified as subject to audit in the OMB Compliance Supplement that
could have a direct and material effect on the Commission's major federal program for the year ended
June 30, 2023. The Commission's major federal program is identified in the summary of auditor's results
section of the accompanying schedule of findings and questioned costs.
In our opinion, the Commission complied, in all material respects, with the compliance requirements
referred to above that could have a direct and material effect on its major federal program for the year
ended June 30, 2023.
Basis for Opinion on the Major Federal Program
We conducted our audit of compliance in accordance with auditing standards generally accepted in the
United States of America (GAAS); the standards applicable to financial audits contained in Government
Auditing Standards issued by the Comptroller General of the United States (Government Auditing
Standards); and the audit requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform
Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform
Guidance). Our responsibilities under those standards and the Uniform Guidance are further described
in the Auditor's Responsibilities for the Audit of Compliance section of our report.
We are required to be independent of the Commission and to meet our other ethical responsibilities, in
accordance with relevant ethical requirements relating to our audit. We believe that the audit evidence
we have obtained is sufficient and appropriate to provide a basis for our opinion on compliance for the
major federal program. Our audit does not provide a legal determination of the Commission's
compliance with the compliance requirements referred to above.
Responsibilities of Management for Compliance
Management is responsible for compliance with the requirements referred to above and for the design,
implementation, and maintenance of effective internal control over compliance with the requirements
of laws, statutes, regulations, rules and provisions of contracts or grant agreements applicable to the
Commission's federal program.
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Auditor's Responsibilities for the Audit of Compliance
Our objectives are to obtain reasonable assurance about whether material noncompliance with the
compliance requirements referred to above occurred, whether due to fraud or error, and express an
opinion on the Commission's compliance based on our audit. Reasonable assurance is a high level of
assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in
accordance with GAAS, Government Auditing Standards, and the Uniform Guidance will always detect
material noncompliance when it exists. The risk of not detecting material noncompliance resulting from
fraud is higher than for that resulting from error, as fraud may involve collusion, forgery, intentional
omissions, misrepresentations, or the override of internal control. Noncompliance with the compliance
requirements referred to above is considered material, if there is a substantial likelihood that,
individually or in the aggregate, it would influence the judgment made by a reasonable user of the
report on compliance about the Commission's compliance with the requirements of the major federal
program as a whole.
In performing an audit in accordance with GAAS, Government Auditing Standards, and the Uniform
Guidance, we:
• Exercise professional judgment and maintain professional skepticism throughout the audit.
• Identify and assess the risks of material noncompliance, whether due to fraud or error, and
design and perform audit procedures responsive to those risks. Such procedures include
examining, on a test basis, evidence regarding the Commission 's compliance with the
compliance requirements referred to above and performing such other procedures as we
considered necessary in the circumstances.
• Obtain an understanding of the Commission's internal control over compliance relevant to the
audit in order to design audit procedures that are appropriate in the circumstances and to test
and report on internal control over compliance in accordance with the Uniform Guidance, but
not for the purpose of expressing an opinion on the effectiveness of the Commission's internal
control over compliance. Accordingly, no such opinion is expressed.
We are required to communicate with those charged with governance regarding, among other matters,
the planned scope and timing of the audit and any significant deficiencies and material weaknesses in
internal control over compliance that we identified during the audit.
Report on Internal Control over Compliance
A deficiency in internal control over compliance exists when the design or operation of a control over
compliance does not allow management or employees, in the normal course of performing their
assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance
requirement of a federal program on a timely basis. A material weakness in internal control over
compliance is a deficiency, or combination of deficiencies, in internal control over compliance, such that
there is a reasonable possibility that material noncompliance with a type of compliance requirement of
a federal program will not be prevented, or detected and corrected, on a timely basis. A significant
deficiency in internal control over compliance is a deficiency, or a combination of deficiencies, in internal
control over compliance with a type of compliance requirement of a federal program that is less severe
than a material weakness in internal control over compliance, yet important enough to merit attention
by those charged with governance.
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264
Our consideration of internal control over compliance was for the limited purpose described in the
Auditor's Responsibilities for the Audit of Compliance section above and was not designed to identify all
deficiencies in internal control over compliance that might be material weaknesses or significant
deficiencies in internal control over compliance. Given these limitations, during our audit we did not
identify any deficiencies in internal control over compliance that we consider to be material
weaknesses, as defined above. However, material weaknesses or significant deficiencies in internal
control over compliance may exist that were not identified.
Our audit was not designed for the purpose of expressing an opinion on the effectiveness of internal
control over compliance. Accordingly, no such opinion is expressed.
The purpose of this report on internal control over compliance is solely to describe the scope of our
testing of internal control over compliance and the results of that testing based on the requirements of
the Uniform Guidance. Accordingly, this report is not suitable for any other purpose.
Report on Schedule of Expenditures of Federal Awards Required by the Uniform Guidance
We have audited the financial statements of the governmental activities, the business -type activities,
each major fund and the aggregate remaining fund information of the Commission as of and for the year
ended June 30, 2023, and the related notes to the financial statements, which collectively comprise the
Commission's basic financial statements. We issued our report thereon dated October 31, 2023, which
contained unmodified opinions on those financial statements. Our report included an emphasis of
matter paragraph regarding the Commission's adoption of Governmental Accounting Standards Board
(GASB) Statement No. 96, Subscription -Based Information Technology Arrangements, for the year ended
June 30, 2023. Our audit was conducted for the purpose of forming opinions on the financial statements
that collectively comprise the basic financial statements. The accompanying schedule of expenditures of
federal awards is presented for purposes of additional analysis as required by the Uniform Guidance and
is not a required part of the basic financial statements. Such information is the responsibility of
management and was derived from and relates directly to the underlying accounting and other records
used to prepare the basic financial statements. This information has been subjected to the auditing
procedures applied in the audit of the basic financial statements and certain additional procedures,
including comparing and reconciling such information directly to the underlying accounting and other
records used to prepare the basic financial statements or to the basic financial statements themselves,
and other additional procedures in accordance with auditing standards generally accepted in the United
States of America. In our opinion, the schedule of expenditures of federal awards is fairly stated in all
material respects in relation to the basic financial statements as a whole.
Rancho Cucamonga, California
October 31, 2023
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265
Riverside County Transportation Commission
Schedule of Expenditures of Federal Awards
Fiscal Year Ended June 30, 2023
Federal Agency Federal Financial Direct or Passed
Direct or Pass -Through Agency Assistance Pass -Through Entity Through to Federal
CFDA Program Title or Cluster Listing Identifying Number Subrecipients Expenditures
U.S. Department of Transportation
Passed through California Department of Transportation:
Highway Planning and Construction Cluster:
Highway Planning and Construction - SR60 Truck Lanes 20.205 08-1675 $ $ 645,464
Highway Planning and Construction - I15ELP Southern Extension 20.205 19-131-100-00 - 2,706,072
Highway Planning and Construction -115 Smart Freeways 20.205 21-31-126-00 - 1,872,039
Highway Planning and Construction - SR91 Corridor Operations Project 20.205 21-31-018-00 - 1,416,065
Highway Planning and Construction - Mid County Parkway Phase 2 ROW 20.205 STBGSB1L 6054(101) - 74,922
Highway Planning and Construction - SR71/91 Connectors 20.205 22-31-024-00 - 6,673,648
Total Highway Planning and Construction Cluster - 13,388,210
Direct:
Transportation Infrastructure Finance and Innovation Act (TIFIA) Program:
TIFIA I-15 Express Lanes Project
20.223 TIFIA-2017-1011A - 152,214,260
Total TIFIA Program - 152,214,260
Direct:
Federal Transit Cluster:
Federal Transit - Capital Investment:
Commuter Rail 5 Year Rehab 5309 20.500 CA -05-0268-00 316,763 1,316,762
Commuter Rail Rehab Final 5309 20.500 CA -05-0283-00 853 853
Rail State of Good Repair 5337 20.500 CA -054-0033-00 484,828 484,828
Transit Oriented Communities Strategic Plan 20.500 CA -2021-132-00 238,241
Federal Transit Urbanized Area Formula Grant:
Moreno Valley/March Field Station Rail Rehab 20.507 CA -2017-112-00 - 6,324,113
Commuter Rail Pax Upgrades 5307 20.507 CA -90-Z234-00 - 356,348
COVID-19 - CARES Act: Vanpool Operating Assistance 5307 20.507 CA -2020-274-00 - 248,466
Commuter Rail Rehabilitation and Maintenance 20.507 CA -2021-131-00 - 1,874,489
State of Good Repair Grants Program:
Commuter Rail 5 Year Rehab 5309 20.525 CA -2017-121-00 3,150,314 3,150,314
2020 Commuter Rail State of Good Repair 5337 20.525 CA -2020-261-00 559,319 559,319
Buses and Bus Facilities Formula, Competitive, and Low or No Emissions Program:
South Perris Parking Lot 20.526 CA -2023-105-00 - 417,631
Total Federal Transit Cluster
4,512,077 14,971,364
Total Expenditures of Federal Awards $ 4,512,077 $ 180,573,834
See Notes to Schedule of Expenditures of Federal Awards 6
266
Riverside County Transportation Commission
Notes to Schedule of Expenditures of Federal Awards
Fiscal Year Ended June 30, 2023
Note 1- Basis of Presentation
The accompanying schedule of expenditures of federal awards (Schedule) includes the federal award activity of
the Riverside County Transportation Commission (Commission) under programs of the federal government for
the year ended June 30, 2023. The information in this Schedule is presented in accordance with the
requirements of Title 2 Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the Schedule presents only
a selected portion of the operations of the Commission, it is not intended to and does not present the financial
position, changes in net position, or cash flows of the Commission.
Note 2 - Summary of Significant Accounting Policies
Expenditures of governmental funds reported on the Schedule are reported on the modified accrual basis of
accounting. Expenses of enterprise funds are reported on the accrual basis of accounting. Such
expenditures/expenses are recognized following the cost principles contained in the Uniform Guidance, wherein
certain types of expenditures/expenses are not allowable or are limited as to reimbursement. Negative amounts
shown on the Schedule represent adjustments or credits made in the normal course of business to amounts
reported as expenditures/expenses in the prior years.
Note 3 - Direct and Indirect (Pass -Through) Federal Awards
Federal awards may be granted directly to the Commission by a federal granting agency or may be granted to
other government agencies which pass -through federal awards to the Commission. The Schedule includes both
of these types of Federal award programs when they occur.
Note 4 - Transportation Infrastructure Finance and Innovation Act (TIFIA) Program Loans
In July 2017, the Commission executed a TIFIA loan agreement with the United States Department of
Transportation in an amount not to exceed $152,214,260 to finance portions of the Commission's 1-15 Express
Lanes Project. The TIFIA loan is evidenced by a toll revenue bond of the Commission issued pursuant to the
master indenture and supplemental indentures. During construction and for a period of to five years following
substantial completion, interest is compounded and added to the TIFIA loan. The TIFIA loan requires mandatory
debt service payments at a minimum and scheduled debt service payments to the extent additional funds are
available. TIFIA debt service payments related to the 1-15 Express Lanes Project are expected to commence on
December 1, 2025, which is five years after substantial completion of the 1-15 Express Lanes Project, through
June 1, 2055. The interest rate of the TIFIA loan was 2.84%. There were no 1-15 Express Lanes Project TIFIA loan
proceeds expended during the fiscal year ended June 30, 2023, and the outstanding loan payable at
June 30, 2023 is $167,030,355 (which includes accreted interest).
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Riverside County Transportation Commission
Notes to Schedule of Expenditures of Federal Awards
Fiscal Year Ended June 30, 2023
Note 5 - Indirect Cost Rate
The Commission has not elected to use the 10 -percent de minimis indirect cost rate allowed under the Uniform
Guidance.
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Riverside County Transportation Commission
Schedule of Findings and Questioned Costs
Fiscal Year Ended June 30, 2023
Section I — Summary of Auditor's Results
FINANCIAL STATEMENTS
Type of auditor's report issued Unmodified
Internal control over financial reporting:
Material weaknesses identified No
Significant deficiencies identified not considered
to be material weaknesses None reported
Noncompliance material to financial statements noted? No
FEDERAL AWARDS
Internal control over major program:
Material weaknesses identified No
Significant deficiencies identified not considered
to be material weaknesses None reported
Type of auditor's report issued on compliance
for major program: Unmodified
Any audit findings disclosed that are required to be reported
in accordance with Uniform Guidance 2 CFR 200.516(a): No
Identification of major federal programs:
Name of Federal Program
Federal Financial
Assistance Listing
Transportation Infrastructure Finance and Innovation 20.223
Act (TIFIA) Program
Dollar threshold used to distinguish between type A
and type B programs: $850,787
Auditee qualified as low -risk auditee? Yes
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Riverside County Transportation Commission
Schedule of Findings and Questioned Costs
Fiscal Year Ended June 30, 2023
Section II — Financial Statement Findings
None identified.
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Riverside County Transportation Commission
Schedule of Findings and Questioned Costs
Fiscal Year Ended June 30, 2023
Section III — Federal Award Findings and Questioned Costs
None identified.
11
271
Riverside County Transportation Commission
Summary Schedule of Prior Audit Findings
Fiscal Year Ended June 30, 2023
None identified.
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RCTC 91 Express Lanes Fund
(Enterprise Fund of the Riverside County Transportation Commission)
Financial Statements
For the Year Ended June 30, 2023
CONTENTS
Independent Auditor's Report
Management's Discussion and Analysis
Financial Statements
1
5
Statement of Net Position 13
Statement of Revenues, Expenses and Changes in Fund Net Position 14
Statement of Cash Flows 15
Notes to Financial Statements 17
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EideBailly..
CPAs & BUSINESS ADVISORS
Independent Auditor's Report
Board of Commissioners
Riverside County Transportation Commission
Riverside, California
Report on the Audit of the Financial Statements
Opinion
We have audited the financial statements of the RCTC 91 Express Lanes Fund (the Fund), an enterprise
fund of the Riverside County Transportation Commission (the Commission) as of and for the year ended
June 30, 2023, and the related notes to the financial statements, as listed in the table of contents.
In our opinion, the accompanying financial statements referred to above present fairly, in all material
respects, the financial position of the RCTC 91 Express Lanes Fund of the Commission, as of June 30,
2023, and the changes in financial position and cash flows thereof for the year then ended in accordance
with accounting principles generally accepted in the United States of America.
Basis for Opinion
We conducted our audit in accordance with auditing standards generally accepted in the United States
of America (GAAS). Our responsibilities under those standards are further described in the Auditor's
Responsibilities for the Audit of the Financial Statements section of our report. We are required to be
independent of the Commission and to meet our other ethical responsibilities, in accordance with the
relevant ethical requirements relating to our audit. We believe that the audit evidence we have
obtained is sufficient and appropriate to provide a basis for our audit opinion.
Emphasis of Matter
As discussed in Note 1, the financial statements present only the RCTC 91 Express Lanes Fund and do not
purport to, and do not, present fairly the financial position of the Commission as of June 30, 2023, the
changes in its financial position, or, where applicable, its cash flows for the year then ended in
accordance with accounting principles generally accepted in the United States of America. Our opinion is
not modified with respect to this matter.
Responsibilities of Management for the Financial Statements
Management is responsible for the preparation and fair presentation of the financial statements in
accordance with accounting principles generally accepted in the United States of America; and for the
design, implementation, and maintenance of internal control relevant to the preparation and fair
presentation of financial statements that are free from material misstatement, whether due to fraud or
error.
What inspires you, inspires us. eidebailly.com
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Auditor's Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole
are free from material misstatement, whether due to fraud or error, and to issue an auditor's report
that includes our opinion. Reasonable assurance is a high level of assurance but is not absolute
assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS will always
detect a material misstatement when it exists. The risk of not detecting a material misstatement
resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery,
intentional omissions, misrepresentations, or the override of internal control. Misstatements are
considered material if there is a substantial likelihood that, individually or in the aggregate, they would
influence the judgment made by a reasonable user based on the financial statements.
In performing an audit in accordance with GAAS, we:
• Exercise professional judgment and maintain professional skepticism throughout the audit.
• Identify and assess the risks of material misstatement of the financial statements, whether due
to fraud or error, and design and perform audit procedures responsive to those risks. Such
procedures include examining, on a test basis, evidence regarding the amounts and disclosures
in the financial statements.
• Obtain an understanding of internal control relevant to the audit in order to design audit
procedures that are appropriate in the circumstances, but not for the purpose of expressing an
opinion on the effectiveness of the Commission's internal control. Accordingly, no such opinion
is expressed.
• Evaluate the appropriateness of accounting policies used and the reasonableness of significant
accounting estimates made by management, as well as evaluate the overall presentation of the
financial statements.
We are required to communicate with those charged with governance regarding, among other matters,
the planned scope and timing of the audit, significant audit findings, and certain internal control —related
matters that we identified during the audit.
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that management's
discussion and analysis, as listed in the table of contents, be presented to supplement the basic financial
statements. Such information is the responsibility of management and, although not a part of the basic
financial statements, is required by the Governmental Accounting Standards Board who considers it to
be an essential part of financial reporting for placing the basic financial statements in an appropriate
operational, economic, or historical context. We have applied certain limited procedures to the required
supplementary information in accordance with GAAS, which consisted of inquiries of management
about the methods of preparing the information and comparing the information for consistency with
management's responses to our inquiries, the basic financial statements, and other knowledge we
obtained during our audit of the basic financial statements. We do not express an opinion or provide
any assurance on the information because the limited procedures do not provide us with sufficient
evidence to express an opinion or provide any assurance.
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Rancho Cucamo ga, California
October 31, 2023
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DISCUSSION & ANALYSIS
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RCTC 91 Express Lanes Fund
Management's Discussion and Analysis
For the Year Ended June 30, 2023
As management of the RCTC 91 Express Lanes Fund (the Fund), an enterprise fund of the Riverside
County Transportation Commission, we offer readers of the Fund financial statements this narrative
overview and analysis of the Fund's financial activities for the fiscal year ended June 30, 2023. We
encourage readers to consider information on financial performance presented in conjunction with the
financial statements that begin on page 11.
Financial Highlights
• At the end of fiscal year (FY) 2022/23, the total net position (deficit) of the Fund was ($333,152,076)
and consisted of net investment (deficit) in capital assets of ($381,252,809), restricted net position
for other post -employment benefits of $171,632, and restricted net position of $47,929,101..
• Net position (deficit) of ($333,152,076) during FY 2022/23 reflects the position after the sixth full
year of toll operations. Specifically, the net position deficit increased $42,639,893 largely due
to payments and expense accruals for operations and repair and rehabilitation costs. The eight -
mile stretch between Interstate (I) 15 and the Orange/Riverside County line and a tolled direct
connector reached substantial completion and opened to motorists on March 20, 2017.
• During FY2022/23, operating income for the Fund totaled $24,718,408. Positive operating income
was due to operating revenues of $73,335,918 which include toll, violation penalty, and account
fee revenues along with Orange County Transportation Authority (OCTA) reimbursements. Total
operating expenses of $48,617,510 include roadway and toll systems maintenance, customer
service, back -office operations, other support costs, and depreciation and amortization.
Overview of the Financial Statements
This discussion and analysis is intended to serve as an introduction to the Fund's financial statements.
The financial statements are comprised of the Fund financial statements and notes to the financial
statements.
The statement of net position presents information on all of the Fund's assets, liabilities, and deferred
outflows/inflows of resources, with the difference reported as net position. Over time, increases or
decreases in net position may serve as a useful indicator of whether the financial position of the Fund is
improving or deteriorating.
The statement of revenues, expenses and changes in fund net position presents information showing
how the Fund's net position changed during the fiscal year. All changes in net position are reported as
soon as the underlying event giving rise to the change occurs, regardless of the timing of related cash
flows. Thus, revenues and expenses are reported for some items that will only result in cash flows in
future fiscal periods.
The statement of cash flows presents information on the cash flows related to operating, noncapital
financing, capital and related financing, and investing activities.
The Fund financial statements can be found on pages 13-16 of this report.
Notes to the financial statements provide additional information that is essential to a full understanding
of the data provided in the financial statements. The notes to the financial statements can be found on
pages 17-31 of this report.
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RCTC 91 Express Lanes Fund
Management's Discussion and Analysis
For the Year Ended June 30, 2023
91 Express Lanes Financial Analysis
As noted previously, net position may serve overtime as a useful indicator of the Fund's financial position.
At June 30, 2023, the Fund's net position reflected a deficit of $333,152,076.Our analysis below focuses
on net position and changes in net position of the Fund's financial activities.
RCTC 91 Express Lanes Fund
Net Position
2023 2022
Current and other assets
Restricted assets
Capital assets, net
Total assets
Deferred outflows of resources
Total assets and deferred outflows of resources
Current liabilities
Long-term liabilities
Total liabilities
Deferred inflows of resou rces
Total liabilities and deferred inflows of resources
Net position
Net investment in capital assets
Restricted
Total net position (deficit)
78,496,421
94,326,728
250,014,357
97,713,096
96,659,743
246,296,153
422,837,506 440,668,992
15,102,893 15,575,869
437,940,399 456,244,861
38,029,725
732,788,044
15,522,016
730,832,526
770,817,769 746,354,542
274,706 402,502
771,092,475 746,757,044
(381,252,809)
48,100,733
(387,552,790)
97,040,607
$ (333,152,076) $ (290,512,183)
FY 2 02 2/2 3 represents the sixth full year of toll operations for the Fund. Total assets and deferred outflows
of resources decreased $18,307,462, or 4%, due primarily to decreases in cash and investments related
to operations and repair and rehabilitation expenses. Total liabilities and deferred inflows of resources
increased $24,335,431 or 3%, primarily due to increases in operating and repair and rehabilitation
expenses.
The Fund's net investment in capital assets reflects a deficit of $381,252,809 and represents (114%) of
the total net position (deficit) in FY 2022/23. The Fund's net position reflects its investment in capital
assets (i.e., land and land improvements; buildings; toll infrastructure; equipment, furniture, and fixtures;
transponders; and toll facility franchise), less any related outstanding debt used to acquire these assets.
The Fund uses these capital assets, which include intangible assets, to provide improved mobility for the
Fund customers and commuters along the State Route (SR) -91 corridor.
Restricted net position, representing resources subject to external restrictions on how they may be used,
was $48,100,733 and represents 14% of the total net position at June 30, 2023.
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RCTC 91 Express Lanes Fund
Management's Discussion and Analysis
For the Year Ended June 30, 2023
The analysis below focuses on the changes in net position.
RCTC 91 Express Lanes Fund
Changes in Net Position
Operating revenues
Toll, penalties, and tees
Total operating revenues
Operating expenses
Management and operational services
Administrative overhead
Other operating expenses
Processional services
General and administrative
Depreciation and amortization
Total operating expenses 48,617,510 27,208,376
Operating income
$ 73,335,918 $ 65,119,434
73,335,918
65,119,434
11,153,921 10,471,038
1,759,600 1,127,200
26,681,088 4,140,069
1,159,216 1,751,986
1,592,122 4,323
6,271,563 9,713,760
24,718,408 37,911,058
Nonoperating revenues(expenses)
Investment income (loss) 4,391,910 (3,022,688)
Interest expense (24,612,767) (24,395,855)
Cost of issuance (3,783,480)
Loss on refunding (6,733,662)
Capital expenses (2,498)
Gain (loss) on sale otcapital assets - (7,341,950)
Total nonoperating revenues (expenses) (20,223,355) (45,27/,635)
Income betore transfers 4,495,053 (7,366,577)
Transfers trom (to) the Commission, net (47,134,946) 2,316,546
Change in net position (42,639,893) (5,050,031)
Total net position at beginning ot year (deficit)
(290,512,183) (285,462,152)
Total net position at end of year (deficit) $ (333,152,076) $ (290,512,183)
The Fund's total operating revenues increased $8,216,484, or 13%, due to higher toll and violation
revenues, resulting from periodic toll rate changes based on traffic volumes according to the toll policy.
During FY 2022/23 periodic toll rate changes were made based on changes in traffic volumes according
to the approved toll policy. Total operating expenses increased $21,409,134, or 79%, primarily due to
increases in repair and rehabilitation costs. Nonoperating expenses (net of nonoperating revenues)
decreased $25,054,280, or 55%, primarily due to the one-time debt issuance for the 2021 Toll Revenue
Refunding Bonds issued in the previous year to pay the 2013 Toll Revenue Bonds and prepayment
of the TIFIA loan with the issuance of the 2021 Toll Revenue Refunding Bonds. Net transfers to the
Commission increased by $49,451,492 as a result of the transfer of surplus funds for the 15/91 Express
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RCTC 91 Express Lanes Fund
Management's Discussion and Analysis
For the Year Ended June 30, 2023
Lanes project completion. Total traffic volume on the RCTC 91 Express Lanes Fund during FY 2022/23
was approximately 16,689,800 trips compared to 16,779,000 trips in FY 2021/22.
Transfer of surplus funds are related to the accumulation of prior year revenues and not a current year
operating revenue transfer. The 91 Express Lanes surplus revenues will meet its funding commitment in
the upcoming fiscal year.
Capital Assets
As of June 30, 2023, the Fund had $250,014,357, net of accumulated depreciation and amortization,
invested in a broad range of capital assets including: land and land improvements; construction
easements; construction in progress; buildings; toll infrastructure comprised of communication
equipment and computer hardware and software; equipment, furniture, and fixtures; toll facility
franchise; leased assets, and transponders. The increase of $3,718,204, or 2%, was due to the increase
in construction in progress and transfer of excess land, offset by the decrease in toll facility franchise due
to depreciation.
RCTC 91 Express Lanes Fund
Capital Assets, Net of Depreciation and Amortization
2023 2022
Capital assets not being depreciated:
Land and land improvements
Construction easements
Construction in progress
Capital assets being depreciated and amortized:
Toll infrastructure
Toll facility franchise
Transponders
Buildings
Equipment, furniture, and fixtures
Right to use lease assets being amortized:
Buildings
Total capital assets, net
$ 18,678,656 $ 11,431,881
206,307 206,307
6,229,120 4,614,768
4,515,784 4,436,388
219,713,090 224,735,103
9,888
378,010 514,764
11,578 16,231
281,812 330,823
$ 250,014,357 $ 246,296,153
More detailed information about the Fund's capital assets is presented in note 4 to the financial
statements.
Debt Administration
As of June 30, 2023, the Fund had $734,891,709 outstanding in toll revenue bonds. The increase of
$1,857,245, or less than 1 %, is due to the increases in the compounded and accreted interest on the toll -
supported long-term debt, including premium.
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RCTC 91 Express Lanes Fund
Management's Discussion and Analysis
For the Year Ended June 30, 2023
RCTC 91 Express Lanes Fund
Outstanding Debt
Toll revenue bonds
Total outstanding debt
$ 734,891,709
$ 733,034,464
$ 734,891,709 $ 733,034,464
Additional information on long-term debt can be found in note 6 to the financial statements.
Economic and Other Factors
The Fund makes up $74,435,400 or 9% of Commission's FY 2023/24 revenue budget. In FY 2023/24,
toll and non -toll revenues are forecasted to increase by 16% over the FY 2022/23 budget. This increase
is based on estimated toll transactions and current traffic and revenue data. The RCTC 91 Express Lanes
have exceeded initial financing expectations, and the Commission's traffic consultant updated the
investment grade and traffic and revenue study in December 2018. The average projected long-term
rate of growth for toll road revenues beyond FY 2023/24 is 5.03%.
The majority of expenses related to the Fund within FY 2023/24 budget are on -going general costs
related to day-to-day operations of the toll facility. As a fully electronic toll facility, motorists pay tolls
through the convenient use of FasTrak° transponders that automatically deduct toll charges from a
prepaid account.
Under a cooperative agreement entered into with OCTA in December 2011, the RCTC 91 Express Lanes
are jointly operated with the OCTA 91 Express Lanes and collectively referred to as the 91 Express Lanes.
The Commission and OCTA agreed on the use of the same initial operator, cost and revenue sharing,
business rules, interoperability of technology, and shared marketing activities. The joint operation allows
for the sharing of costs and a seamless customer experience.
Contacting 91 Express Lane's Management
This financial report is designed to provide a general overview of the Fund's finances for all those with
an interest in the government's finances and to demonstrate the Fund's accountability for the money it
receives. Questions concerning any of the information provide in this report or requests for additional
information should be addressed to the Chief Financial Officer, Finance Department at the Riverside
County Transportation Commission, 4080 Lemon Street, 3rd Floor, P.O. Box 12008, Riverside, CA 92502-
2208.
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RCTC 91 Express Lanes Fund
(Enterprise Fund of the Riverside County Transportation Commission)
Statement of Net Position
June 30, 2023
Assets
Current assets:
Cash and investments $ 74,321,586
Receivables
Accounts 2,500,377
Interest 1,448,791
Violations 33,668
Prepaid expenses 137,697
Total current assets 78,442,119
Noncurrent assets:
Restricted cash and investments 94,326,728
Net other post -employment benetits assets 54,302
Capital assets, net
Nondepreciable 25,114,083
Depreciable and amortizable 224,618,462
Right to use lease asset 281,812
Total noncurrent assets 344,395,387
Total assets 422,837,506
Deterred outtlows of resources
Pension benetits 707,709
Other post -employment benefits 158,076
Loss on retunding bonds 14,237,108
Total assets and deferred outflows of resou rces 437,940,399
Liabilities
Current liabilities:
Accounts payable 9,276,311
Interest payable 1,852,837
Due to other Commission funds 24,247,520
Other liabilities 536
Compensated absences liability 69,199
Lease payable 45,947
Bonds payable -due within one year 2,537,375
Total current liabilities 38,029,725
Noncurrent liabilities:
Net pension liabilities 143,988
Compensated absences liability 44,493
Lease payable 245,229
Bonds payable -due in more than one year 732,354,334
Total noncurrent liabilities 732,788,044
Total liabilities 770,817,769
Deterred inflows of resources
Pension benefits 233,960
Other post -employment benefits 40,746
Total liabilities and deferred inflows of resources 771,092,475
Net position
Net investment (deficit) in capital assets (381,252,809)
Restricted tor other post -employment benetits 171,632
Restricted tor express lanes 47,929,101
Total net position (deficit) $ (333,152,076)
See notes to financial statements
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291
RCTC 91 Express Lanes Fund
(Enterprise Fund of the Riverside County Transportation Commission)
Statement of Revenues, Expenses and Change in Fund Net Position
For the Year Ended June 30, 2023
Operating revenues
Tolls, penalties, and tees
$ 73,335,918
Operating expenses
Management and operational services 11,153,921
Administrative overhead 1,759,600
Other operating expenses 26,681,088
Professional services 1,159,216
General and administrative expenses 1,592,122
Depreciation and amortization 6,271,563
Total operating expenses 48,617,510
Operating income 24,718,408
Nonoperating revenues(expenses)
Investment income(loss) 4,391,910
Interest expense (24,612,767)
Capital expenses (2,498)
Total nonoperating revenues (expenses) (20,223,355)
Income before transfers 4,495,053
Transfers
Contributions from Commission governmental funds 7,246,775
Transfers in from Enterprise funds 43
Transfers out to Commission governmental funds (54,381,764)
Total transfers (47,134,946)
Change in net position (42,639,893)
Net position (deficit) at beginning of year (290,512,183)
Net position (deficit) at end of year $ (333,152,076)
See notes to financial statements
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292
RCTC 91 Express Lanes Fund
(Enterprise Fund of the Riverside County Transportation Commission)
Statement of Cash Flows
For the Year Ended June 30, 2023
Cash flows from operating activities
Receipts from customers and users $ 69,746,783
Payments to vendors (34,870,474)
Payments to employees (1,077,086)
Payments for RCTC interfund services used (1,099,448)
Net cash provided by operating activities 32,699,775
Cash flows from noncapital financing activities
Transfers of surplus funds to governmental activities
Net cash used for noncapital financing activities
Cash flows from capital and related financing activities
Interest paid on long-term debt
Acquisition of capital assets
Net cash used for capital and related financing activities
Cash flows from investing activities
Interest
Net cash provided by investing activities
(30,669,088)
(30,669,088)
(22,201,017)
(2,739,025)
(24,940,042)
3,075,499
3,075,499
Net increase in cash and cash equivalents (19,833,856)
Cash and cash equivalents at beginning of year 190,032,778
Cash and cash equivalents at end of year
$ 170,198,922
Reconciliation ot cash and cash equivalents to statement ot net position
Cash and investments $ 74,321,586
Add: fair value adjustment 1,550,608
Restricted cash and investments
Total cash and cash equivalents
See notes to financial statements
75,872,194
94,326,728
$ 170,198,922
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RCTC 91 Express Lanes Fund
(Enterprise Fund of the Riverside County Transportation Commission)
Statement of Cash Flows, Continued
For the Year Ended June 30, 2023
Reconciliation of operating income to net cash
provided by (used for) operating activities
Operating income $ 24,718,408
Adjustments to reconcile operating income to net cash
provided by (used for) operating activities
Depreciation and amortization expense 6,271,563
Change in assets and liabilities
(Increase) Decrease in violations receivables 10,198
(Increase) Decrease in other receivables, net (75,839)
(Increase) Decrease in due from other Commission funds 2,547,235
(Increase) Decrease in prepaid assets 20,096
Increase(Decrease) in pension and post -employment benefit assets, net of deferred items 472,182
Increase (Decrease) in accounts payable (1,387,424)
Increase (Decrease) in due to other Commission funds 95,042
Increase (Decrease) in compensated absences liability 28,314
Total adjustments 7,981,367
Net cash provided by operating activities $ 32,699,775
Noncash capital, financing and investing activities
Amortization of bond premium $ 2,537,375
Amortization of loss on bond refunding (547,581)
Accreted and compounded interest 4,394,620
Net increase in the fair value of investments 169,727
Contributions from governmental activities 7,246,775
See notes to financial statements
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294
RCTC 91 Express Lanes Fund
Notes to Financial Statements
June 30, 2023
Note 1. Reporting Entity
After more than a decade of work, which includes approximately three years of construction, the
Riverside County Transportation Commission (Commission) achieved substantial completion on the SR -
91 Corridor Improvement (91 Project) on March 20, 2017, including express lane and general-purpose
lane improvements. In achieving substantial completion, the RCTC 91 Express Lanes opened to traffic
and tolling commenced. The RCTC 91 Express Lanes cover an eight -mile stretch on SR -91 between 1-15
and the Orange/Riverside County line and a tolled direct connector.
The RCTC 91 Express Lanes Fund (Fund) is reported as a major enterprise fund in the Commission's
basic financial statements. The accompanying financial statements present the net position, changes in
net position, and cash flows of the Fund only. They do not purport to, and do not, present the overall
financial position of the Commission or its changes in net position as of June 30, 2023.
Note 2. Summary of Significant Accounting Policies
The accounting policies of the Fund are in conformity with generally accepted accounting principles
applicable to governmental units. The Governmental Accounting Standards Board (GASB) is the
accepted standard -setting body for establishing accounting and financial reporting principles.
Basis of Accounting: The financial statements of the Fund are reported using the economic resources
measurement focus and the accrual basis of accounting. Revenues consisting substantially of tolls and
fees, are recorded when earned, and expenses are recorded when a liability is incurred, regardless
of the timing of related cash flows. Toll revenue is recognized when the customers utilize the toll road
facility and payment is collected.
Enterprise funds distinguish operating revenues and expenses from nonoperating items. Operating
revenues and expenses generally result from providing services in connection with an enterprise fund's
principal and ongoing operations.The principal operating revenues of the Fund are charges to customers
for use of the toll facility. Operating expenses for the Fund include the cost of services, administrative
expenses, and depreciation and amortization on capital and intangible assets. All revenues and expenses
not meeting this definition are reported as nonoperating revenues and expenses.
Violations: Violations consist of uncollected violation tolls and penalties. Unpaid violations of
$65,411,641 as of June 30, 2023 are not recognized as revenue until payment is received. If violations
and penalties remain owed for more than 90 days, they are turned over to the collection agency. Unpaid
violations remain recorded for a period of four years in accordance with the statute of limitations, at
which time, they will be deemed uncollectible.
Cash and investments: The Commission maintains cash and investments in accordance with the
Investment Policy adopted by the Board of Commissioners in December 2022. The Investment Policy
complies with the California Government Code (Code). Investments of bond proceeds as permitted by
the applicable debt documents are maintained with U.S. Bank as trustee. Separate investment accounts
are maintained for the proceeds of bond issues, with the earnings for each bond issue accounted for
separately. The Fund participates in the Riverside County Pooled Investment Fund (RCPIF). Cash from
other Commission revenue sources is commingled for investment purposes in the RCPIF, with investment
earnings allocated to the different accounts based on average daily account balances.
The Commission holds investments that are measured at fair value on a recurring basis. Investments in
U.S. Treasury obligations, U.S. agency securities, corporate notes, mortgage and asset -backed securities,
and municipal bonds are carried at fair value based on quoted market prices, except for money market
investments, which are carried at amortized cost which approximates fair value. The RCPIF is carried at
fair value based on the value of each participating dollar as provided by RCPIF.
-17-
295
RCTC 91 Express Lanes Fund
Notes to Financial Statements
June 30, 2023
Note 2. Summary of Significant Accounting Policies, Continued
Cash and cash equivalents: For the purpose of the statement of cash flows, the Commission considers
all short-term investments with an initial maturity of three months or less to be cash equivalents. All
deposits, commercial paper notes, money market funds, negotiable certificates of deposit, and the
Fund's share of the RCPIF represent cash and cash equivalents for cash flow purposes.
Restricted cash and investments: Investments set aside in the Senior Lien Obligations Reserve Fund,
Senior Lien Capitalized Interest Fund, Senior Lien Principal Fund, Senior Lien Interest Fund, Second Lien
Obligation Reserve Fund, Repair and Rehabilitation Fund, and Toll Revenue Fund are pursuant to the
terms of the 2013 Indenture, as amended by the fourth Supplemental Indenture and its use is limited by
applicable debt terms and conditions.
Permitted investments per the debt indentures include government obligations, State of California
and local agency obligations, banker's acceptances, commercial paper notes, negotiable certificates
of deposit, repurchase agreements, money market funds, other mutual funds, investment agreements,
RCPIF, and variable and floating rate securities.
Receivables: Accounts receivables include amounts due from other California toll road agencies related
to their customers' use of the RCTC 91 Express Lanes, as well as amounts owed from the Orange County
Transportation Authority (OCTA) in accordance with a cooperative agreement.
Capital assets: Capital assets include land and land improvements; construction easements;
construction in progress; toll infrastructure; buildings; equipment, furniture, and fixtures; leased assets,
toll facility franchise; and transponders. Capital assets are defined by the Fund as assets with an initial,
individual cost of more than $100,000 and a useful life in excess of three years. It is also the Fund's
policy to capitalize transponder purchases, as they are considered a significant class of assets even
though individually under $100,000. Such assets are recorded at historical cost. The costs of normal
maintenance and repairs that do not add value to the asset or materially extend asset lives are not
capitalized.
Capital assets are depreciated using the straight-line method over the following estimated useful lives:
Asset Type Useful Life
Buildings 10 years
Equipment, furniture and fixtures 3 to 5 years
Temporary construction easements 1 to 3 years
Toll facility franchise 50 years
Toll infrastructure 5 to 10 years
Transponders 5 years
In May 2012 the Commission entered into a toll facility agreement with California's Department of
Transportation (Caltrans) and obtained authority to toll the SR -91 from the Orange County/Riverside
County line to 1-15 for 50 years commencing as of the first day on which the RCTC 91 Express Lanes
open for public use and toll operations. The RCTC 91 Express Lanes opened on March 20, 2017.
Right to use lease assets: The right to use assets are initially measured at an amount equal to the initial
measurement of the related lease liability plus any lease payments made prior to the lease term, less
lease incentives, and plus ancillary charges necessary to place the lease asset into place. The right to use
assets are amortized on a straight-line basis over the life of the related lease.
-18-
296
RCTC 91 Express Lanes Fund
Notes to Financial Statements
June 30, 2023
Note 2. Summary of Significant Accounting Policies, Continued
Deferred outflows of resources: In addition to assets, the statement of net position reports a separate
section for deferred outflows of resources. This separate financial statement element represents a
consumption of net position that applies to a future period and so will not be recognized as an outflow of
resources (expense) until then. As of June 30, 2023, the Fund has deferred outflows of resources related
to pension, other post -employment benefits (OPEB), and loss on refunding bonds.
Due to other Commission funds: During the course of operations, transactions occur between
Commission governmental funds involving goods provided and services rendered.
Compensated absences: Vacation hours accumulated and not taken at year-end is reported as a long-
term liability, net of current portion, in the Fund.
Sick leave is recorded as an expense when taken by the employee. Employees with continuous five years
of service have the option of being paid for sick leave accumulated in excess of 240 hours at a rate of
50% (i.e., one hour's pay for every two hours in excess of 240). Any sick leave in excess of 240 hours is
accrued at fiscal year-end, and a liability is reported in the Fund.
Pensions: For purposes of measuring the net pension liabilities and deferred outflows/inflows of
resources related to pensions and pension expense, information about the fiduciary net position of the
Commission's California Public Employees' Retirement System (CaIPERS) plans (Plans) and additions
to/deduction from Plans' fiduciary net position have been determined on the same basis as they are
reported by CaIPERS. For this purpose, benefit payments (including refunds of employee contributions)
are recognized when due and payable in accordance with benefit terms. Investments are reported at fair
value.
Post -employment benefits other than pensions: For purposes of measuring the net OPEB asset,
deferred outflows/inflows of resources related to the OPEB asset and OPEB expense, information
about the fiduciary net position of the Commission's OPEB plan, and additions to/deductions from the
OPEB fiduciary net position have been determined on the same basis as they are reported by California
Employers' Retiree Benefit Trust administered by CaIPERS. For this purpose, benefit payments are
recognized when due and payable in accordance with benefit terms. Investments are reported at fair
value, except for money markets and participating interest -earning investment contracts that have a
maturity at the time of purchase of one year or less, which is reported at cost.
Lease Payable: During the year ended June 30, 2023, the Fund recognized lease liabilities of $291,176.
The liability is the right to use leased building.
Deferred inflows of resources: In addition to liabilities, the statement of net position reports a separate
section for deferred inflows of resources. This separate financial statement element represents an
acquisition of net position that applies to a future period and will not be recognized as an inflow of
resources, or revenue, until then. The Fund has deferred inflows of resources related to pension and
other post -employment benefits.
Risk management: The Fund purchases commercial property insurance including business interruption,
earthquake, and flood coverage related to the toll facility.
-19-
297
RCTC 91 Express Lanes Fund
Notes to Financial Statements
June 30, 2023
Note 2. Summary of Significant Accounting Policies, Continued
Net position: Net position represents the difference between assets plus deferred outflow of resources
and liabilities plus deferred inflow of resources and is classified into two categories:
• Net investment (deficit) in capital assets consists of capital and intangible assets, net of
accumulated depreciation, reduced by the outstanding balances of any borrowings used for the
acquisition, construction, or improvement of those assets and excludes unspent debt proceeds.
• Restricted net position represents restricted assets less liabilities related to those assets.
Restricted assets are recorded when there are limitations imposed by creditors (such as through
debt covenants). The statement of net position includes restricted net position for the portion of
net toll revenues restricted by the 2013 Master Indenture, as amended by the fourth Supplemental
Indenture for toll operations.
The deficit in net investment in capital assets will be reduced by future toll revenues for the payment of
outstanding toll obligations.
Use of estimates: The preparation of the financial statements in conformity with accounting principles
generally accepted in the United States requires management to make estimates and assumption that
affect certain reported amounts and disclosures during the reporting period. As such, actual results
could differ from those estimates.
Note 3. Cash and Investments
Cash and investments are comprised of the following at June 30, 2023:
Cash in bank
Investments
With RCPIF
With Trustee
Total investments
Total cash and investments
Total cash and investments are reported in the financial statements as:
Unrestricted cash and investments
Restricted cash and investments
Total cash and investments
$ 158,301
74,163,285
94,326,728
168,490,013
$ 168,648,314
$ 74,321,586
94,326,728
$ 168,648,314
Fair Value Hierarchy: The Commission categorizes its fair value measurements within the fair value
hierarchy established by generally accepted accounting principles. The hierarchy is based on the
valuation inputs used to measure fair value of the assets. Level 1 inputs are quoted prices in an active
market for identical assets; Level 2 inputs are based on similar observable assets either directly or
indirectly, which may include inputs in markets that are not considered to be active; and Level 3 inputs
are significant unobservable inputs (the Commission does not value any of its investments using Level
3 inputs).
-20-
298
RCTC 91 Express Lanes Fund
Notes to Financial Statements
June 30, 2023
Note 3. Cash and Investments, Continued
The following is a summary of the fair value hierarchy of the fair value of investments of the Fund as of
June 30, 2023:
Fair Value Measurements Using
Investments by fair value level:
June 30, 2023
Quoted Prices in Active
Markets for Identical
Assets (Level 1)
Significant Other Observable
Inputs (Level 2)
Investments subject to fair value hierarchy:
Mortgage and asset -backed securities
U.S.Treasury obligations
Money market mutual funds
U.S. agency securities
Corporate notes
Commercial paper
Municipal bonds
Total investments measured at fair value
Investments not subject to fair value hierarchy:
RCPIF
Total investments
$ 24,946,257 $
10,398,542
36,924,631
8,021,198
10,396,376
699,013
2,940,711
10,398,542
36,924,631
$ 24,946,257
8,021,198
10,396,376
699,013
2,940,711
94,326,728 $ 47,323,173 $ 47,003,555
74,163,285
$ 168,490,013
Investments classified in Level 1 of the value hierarchy, valued at $ 47,323,173 are valued using quoted
prices in active markets.
Mortgage and asset -backed securities totaling $24,946,257, U.S. agency securities totaling $8,021,198,
corporate notes totaling $10,396,376, commercial paper totaling $699,013, and municipal bonds
totaling $2,940,711, classified in Level 2 of the fair value hierarchy, are valued using matrix pricing
techniques maintained by various pricing vendors. Matrix pricing is used to value securities based on
the securities' relationship to benchmark quoted prices. Fair value is defined as the quoted market value
on the last trading day of the period. These prices are obtained from various pricing sources by the
custodian bank.
As of June 30, 2023, the Fund has the following investments:
Investments
Interest Rate
Fair Value Principal Range
Maturity Range
Weighted
Average Maturity
(Years)
RCPIF
Held by Trustee
Commercial paper
Corporate notes
Money market mutual funds
Mortgage and asset -backed securities
Municipal bonds
U.S. agency securities
U.S.Treasury obligations
Total Investments
The weighted average maturity
investment's fair value.
$ 74,163,285 $ 75,713,893 0.210%-6.00%
699,013 693,070 5.483
10,396,376 10,530,157 0.350%- 5.896%
36,924,631 36,924,631 4.556% - 4.706%
24,946,257 25,933,742 0.983% - 5.223%
2,940,711 2,957,019 0.654%- 4.585%
8,021,198 8,130,448 0.657% - 5.757%
10,398,542 10,639,644 0.127% - 2.343%
$ 168,490,013 $ 171,522,604
Unrestricted investment portfolio weighted average 12.372
is calculated using the investment's effective duration weighted by the
6/30/23-6/30/28
7/10/23
10/26/23 -10/15/27
N/A
7/25/23 -9/16/55
7/1/23-11/1/30
4/8/24-11/16/28
10/15/23-8/15/30
1.300
0.027
1.571
20 days or 0.055
6.232
2.116
1.451
1.191
299
-21-
RCTC 91 Express Lanes Fund
Notes to Financial Statements
June 30, 2023
Note 3. Cash and Investments, Continued
As of June 30, 2023, mortgage and asset -backed securities totaled $24,946,257. The underlying assets
are consumer receivables that include credit cards, auto/equipment, and home loans. The securities
have a fixed interest rate and are rated Aaa/AAA by least -two of the three nationally recognized statistical
rating organizations.
Deposits and withdrawals in the RCPIF are made on the basis of $1.00 (cost basis) and not fair value.
Accordingly, the Fund's investment at June 30, 2023 is uncategorized, not defined as Level 1, Level 2, or
Level 3 input.
Interest rate risk: While the Commission does not have a formal policy related to the interest rate risk
of investments, the Commission's investment policy follows the Code as it relates to limits on investment
maturities as a means of managing exposure to fair value losses arising from increasing interest rates. In
accordance with the Commission's investment policy, restricted investments are invested in accordance
with the maturity provisions of the specific bond indenture, which may extend beyond five years.
Custodial credit risk: Custodial credit risk for deposits is the risk that, in the event of the failure of a
depository financial institution, a government will not be able to recover its deposits or will not be able
to recover collateral securities that are in the possession of an outside party. The custodial credit risk
for investments is the risk that, in the event of the failure of the counterparty (e.g., broker -dealer) to a
transaction, a government will not be able to recover the value of its investment or collateral securities
that are in the possession of another party. The Commission's investment policy requires that a third -
party bank trust department hold all securities owned by the Commission. All trades are settled on a
delivery versus payment basis through the Commission's safekeeping agent.
The Fund's cash deposits are included in the overall Commission's deposits. Bank balances over
$5,000,000 are swept daily into a money market account. Of the bank balance, up to $250,000 is
federally insured under the Federal Depository Insurance Corporation with balances in excess of
$250,000 collateralized in accordance with the Code; however, the collateralized securities are not held
in the name of the Commission.
Credit risk: The Commission's investment policy as well as the specific bond indentures set minimum
acceptable credit ratings for investments from any of the three nationally recognized statistical rating
organizations. The following table is a summary of the credit quality distribution and concentration of
credit risk by investment type as a percentage of each category's fair value at June 30, 2023; securities
denoted as NR are not rated by one of the nationally recognized statistical rating organizations.
-22-
300
RCTC 91 Express Lanes Fund
Notes to Financial Statements
June 30, 2023
Investments
Moody's S&P % of Portfolio
RCPIF Aaa-bf NR 44.02%
Commercial paper
Various P-2 A-2 0.41%
Corporate A1 A 0.68%
Notes A1 A- 0.99%
Notes Al BBB+ 0.36%
Notes A2 A 0.60%
Notes A2 A- 0.41%
Notes A2 BBB+ 0.06%
Notes A3 A 0.27%
Notes A3 A- 0.35%
Notes AAA AAA 0.23%
Notes AAA NR 0.47%
Notes NR A-1+ 0.11%
Notes NR AAA 1.64%
Money market mutual funds
Funds AAA MA 21.92%
Mortgage and asset backed securities
Securities AA+ N/A 0.06%
Securities AAA NR 0.19%
Securities AAA AAA 0.15%
Securities AAA NR 0.38%
Securities NR AA+ 13.59%
Securities NR AAA 0.43%
Municipal bonds
County of San Diego Regional Airport Authority A2 NR 0.20%
Florida Housing Finance Corporation AAA NR 0.30%
Forsyth County, Georgia School District AAA MA 0.28%
Port Authority of New York and New Jersey AA3 AA- 0.25%
State of Connecticut AA3 AA- 0.18%
University of Washington AAA AA+ 0.18%
Wisconsin Housing Economic Development Authority VMIG1 A-1 0.36%
U.S. agency securities
Notes AAA AA+ 4.60%
Notes AAA NR 0.16%
U.S. Treasu ries
Treasury NR NR 6.17%
Total 100.00%
-23-
301
RCTC 91 Express Lanes Fund
Notes to Financial Statements
June 30, 2023
Note 3. Cash and Investments, Continued
Concentration of credit risk: The Commission's investment policy places a limit of 10% on the amount
of investment holdings with any one non-U.S. Government or non-federal agency issuer. As of June 30,
2023, the Commission did not have investments in any one issuer that represents more than 5% of the
Commission's total investments.
Note 4. Capital Assets
Capital assets activity for the Fund for the year ended June 30, 2023 is as follows:
Balance
June 30, 2022
Balance
Additions Deletions June 30, 2023
Capital assets not being depreciated:
Land and land improvements
Construction easements
Construction in progress
Total capital assets not being depreciated
Capital assets being depreciated and amortized:
Toll infrastructure
Transponders
Buildings
Equipment, furniture, and fixtures
Toll facility franchise
Total capital assets being depreciated and amortized:
Less accumulated depreciation and amortization for:
Toll infrastructure
Transponders
Buildings
Equipment, furniture, and fixtures
Toll facility franchise
Total accumulated depreciation
Total capital assets being depreciated and amortized, net
Right to use leased assets:
Buildings
Accumulated amortization
Total right to use lease assets
Capital assets, net
$ 11,431,881
206,307
4,614,768
16,252,956
31,993,331
453,818
1,163,847
69,855
250,692,492
284,373,343
(27,556,943)
(443,930)
(649,083)
(53,624)
(25,957,389)
(54,660,969)
229,712,374
$ 7,246,775
1,614,352
8,861.127
1,124,674
3,966
1,128,640
(1,045,278)
(9,888)
(136,754)
(8,619)
(5,022,013)
(6,222,552)
(5,093,912)
$ - $ 18,678,656
206,307
6,229,120
25,114,083
33,118,005
453,818
1,163,847
73,821
250,692,492
285,501,983
(28,601,221)
(453,818)
(785,837)
(62,243)
(30,979,402)
(60,883,521)
224,618,462
379,834
(49,011) (49,011) - (98,022)
379,834
330,823
$ 246,296,153
(49,011) - 281,812
$ 3,718,204 $ - $ 250,014,357
On May 14, 2012, the Commission entered into a toll facilities agreement with Caltrans providing
the Commission with authorization to toll the SR -91 from Orange/Riverside County line to 1-15 for 50
years commencing as of the first day on which the RCTC 91 Express Lanes open for public use and toll
operations. The agreement also set forth the Commission's rights to Caltrans' right of way and Caltrans'
oversight role in the operations and maintenance of the RCTC 91 Express Lanes.
The Fund has recorded one right to use leased asset. The asset is a right to use leased building. The
related lease liability is discussed in the long-term obligations section. The right to use lease assets are
amortized on a straight-line basis over the terms of the related lease.
-24-
302
RCTC 91 Express Lanes Fund
Notes to Financial Statements
June 30, 2023
Note 5. Interfund Transactions
Due from/to other Commission funds: The composition of balances related to due from other funds
and due to other funds of the Commission at June 30, 2023 is as follows:
Payable Fund
Receivable Fund
Amount Explanation
RCTC 91 Express Lanes Enterprise fund
RCTC 91 Express Lanes Enterprise fund
RCTC 91 Express Lanes Enterprise fund
RCTC 91 Express Lanes Enterprise fund
Total due from (to) other Commission funds,
net
Commission's General fund
Commission's General fund
Commission's General fund
Commission's General fund
$ (459,400) Administrative cost allocation
(63,342) Fringe benefits allocation
91 Corridor Operations project
costs allocations
(23,292,170) 15/91 Express Lanes Connector
project costs allocations
(432,608)
$ (24,247,520)
Transfers to/from other Commission funds: During 2023, transfers to/from other Commission funds
were as follows:
Transfer Out
Transfer In
Amount
Explanation
RCTC 91 Express Lanes Enterprise fund
RCTC 91 Express Lanes Enterprise fund
Commission's Special Revenue fund
15 Express Lanes Enterprise fund
Total transfers out to other
Commission funds
Commission's Special Revenue fund
Commission's Special Revenue fund
RCTC 91 Express Lanes Enterprise fund
RCTC 91 Express Lanes Enterprise fund
$ (53,949,156)
(432,608)
7,246,775
Transfer of surplus funds to fund the
15/91 Express Lane project
Transfer of surplus funds to fund the
91 Corridor Operations project costs
allocations
Transfer of capital
43 Transfer of interest
$ (47,134,946)
303
-25-
RCTC 91 Express Lanes Fund
Notes to Financial Statements
June 30, 2023
Note 6. Long -Term Obligations
The following is a summary of changes in long-term obligations for the year ended June 30, 2022:
Balance Additions /
June 30, 2022 Accretion
Reductions
Balance
June 30, 2023
Due Within
One Year ■
Toll revenue bonds:
2013 Bonds
2021 Bonds
Toll revenue premium
Total bonds payable, net
Lease liability
Compensated absences liability
Total long-term obligations
$ 63,606,952 $ 4,394,620 $
615,059,000
54,368,512
733,034,464 4,394,620
335,578 -
85,378 191,361
$ 733,455,420 $ 4,585,981 $
(2,537,375)
(2,537,375)
(44,402)
(163,047)
(2,744,824)
$ 68,001,572
615,059,000
51,831,137
734,891,709
291,176
113,692
$ 735,296,577
2,537,375
2,537,375
45,947
69,199
$ 2,652,521
In July 2010, the Commission authorized the issuance and sale of not to exceed $900 million of toll
revenue bonds related to the 91 Project. In March 2020, the Commission authorized the issuance and
sale of not to exceed $725 million of toll revenue refunding bonds related to the RCTC 91 Express
Lanes. In October 2021, the Commission authorized the issuance of toll revenue refunding bonds (2021
Toll Refunding Bonds) consisting of $88,735,000 senior lien federally taxable bonds, $450,629,000
senior lien tax-exempt bonds, and $75,695,000 second lien tax-exempt bonds. The proceeds of the
2021 Toll Refunding Bonds were used to refund a portion of the RCTC 91 Express Lanes 2013 Toll
Revenue capital interest bonds (CIBs), pay the purchase price of the 2013 Toll Revenue CIBs accepted
for tender for cash, refund and prepay the TIFIA loan, fund capitalized interest, make deposits to
required reserves, and pay costs of issuance. Certain senior lien tax-exempt bonds issued were
exchanged for certain 2013 Toll Revenue CIBs accepted for exchange. Additionally, the Commission
deposited available funds with an escrow agent to defease approximately $28,919,000 in accreted
value of the 2013 Toll Revenue capital appreciation bonds (CABs) maturing in the years 2022 through
2025 and 2027 through 2029. The amount outstanding on the 2013 Toll Revenue CABs at June 30,
2023 was $20,347,880. Cost of issuance of $3.8 million was expended in connection with the issuance
of the 2021 Toll Refunding Bonds. Loss on refunding of $6.7 million was recognized in connection with
the issuance of the 2021 Toll Refunding Bonds. A portion of the proceeds from the sale of the 2021 Toll
Refunding Bonds and the available funds deposited with an escrow agent in separate irrevocable trusts
will be used to service the future debt requirements of the refunded 2013 Toll Revenue CIBs and 2013
Toll Revenue CABs.
-26-
304
RCTC 91 Express Lanes Fund
Notes to Financial Statements
June 30, 2023
Note 6. Long Term Obligations, Continued
2013 Toll Revenue Bonds, Series B (Capital Appreciation Obligation):
Outstanding
In July 2013, the Commission issued $52,829,602 principal amount of serial CABs to
fund a portion of the 91 Project, pay capitalized interest during construction, fund a
debt service reserve fund, fund an initial amount for an operations and maintenance
fund, and pay costs of issuance. In October 2021, the Commission refunded a
portion of the 2013 Series B Senior Bonds. The CABs will not pay current interest as
interest will be compounded commencing December 2021 semiannually and paid at
maturity. Therefore, the CABs will increase in value, or accrete, by the accumulation
of such compounded interest from its initial principal amount to the maturity value in
installments ranging from $4,580,000 to $34,220,000 on various dates from June 1,
2025 through June 1, 2043. Interest rates and yield to maturity range from 3.00% to
4.00%. During 2023, the accretion amount was $4,394,621; the aggregate accretion
through June 30, 2023 is $7,018,372.
$ 68,001,572
In accordance with the bond maturity schedule, the approximate annual debt service requirements to
maturity for the 2013 Toll Revenue Bonds CABs payablethroughouttheterm of the bonds are as follows:
Year Ending June 30 Principal
Accreted Interest
Total
2024
2025
2026
2027
2028
2029-2033
2034-2038
2039-2043
3,696,600
3,681,000
3,312,500
4,179,600
21,580,500
3,451,400
21,081,600
$ 60,983,200 $
4,699,700
5,025,700
5,095,100
5,145,400
5,203,100
24,823,300
20,572,400
22,538,700
93,103,400
$ 4,699,700
8,722,300
8,776,100
8,457,900
9,382,700
46,403,800
24,023,800
43,620,300
$ 154,086,600
2021 Toll Revenue Refunding Bonds, Series A:
Outstanding
In October 2021, the Commission issued $88,735,000 principal amount to (i) refund a
portion of the Commission's outstanding Toll Revenue Senior Lien Bonds, 2013 Series
A (current interest obligations), (ii) fund capitalized interest with respect to the 2021
Series A Senior Bonds, (iii) make a deposit to the 2013 Bonds Reserve Account (which
secured the 2021 Series A Senior Bonds and the 2013 Series B Senior Bonds), and
(iv) pay certain costs of issuance of the 2021 Series A Senior Bonds. The outstanding
2021 Toll Revenue Refunding Bonds, Series A mature in annual installments ranging
from $2,305,000 to $27,750,000 on various dates from June 1, 2030 to June 1, 2041 at
interest rates from 2.477% to 3.335%.
$88,735,000
305
-27-
RCTC 91 Express Lanes Fund
Notes to Financial Statements
June 30, 2023
Note 6. Long Term Obligations, Continued
Year Ending June 30 Principal Interest
Total
2024
2025
2026
2027
2028
2029-2033
2034-2038
2039-2041
$ 2,725,300 $ 2,725,300
2,725,300 2,725,300
2,725,300 2,725,300
2,725,300 2,725,300
2,725,300 2,725,300
12,415,000 13,071,200 25,486,200
61,715,000 6,795,900 68,510,900
14,605,000 1,461,500 16,066,500
n$ 88,735,000 $ 34,955,100 $ 123,690,100
2021 Toll Revenue Refunding Bonds, Series B-1: Outstanding
In October 2021, the Commission issued $437,895,000 principal amount at a premium
of $46,512,600 to (i) refund and prepay a portion of the Commission's outstanding Toll
Revenue Subordinate Bonds, 2013 TIFIA Series by prepaying a corresponding portion
of its obligations under the related TIFIA Loan Agreement, (ii) pay the purchase price
of 2013 Series A Senior Bonds accepted for tender for cash, (iii) make a deposit to the
2021 Series B Senior Bonds Reserve Account, and (iv) pay certain costs of issuance of
the 2021 Series B Senior Bonds. The outstanding 2021 Toll Revenue Refunding Bonds,
Series B-1 mature in annual installments ranging from $5,010,000 to $65,105,000 on
various dates from June 1, 2037 to June 1, 2049 at interest rates from 3.000 to 4.000%. $ 437,895,000
Year Ending June 30 Principal Interest Taal
2024 $ $ 16,065,800 $ 16,065,800
2025 16,065,800 16,065,800
2026 16,065,800 16,065,800
2027 16,065,900 16,065,900
2028 16,065,900 16,065,900
2029-2033 80,329,200 80,329,200
2034-2038 66,740,000 79,076,600 145,816,600
2039-2043 134,480,000 53,619,200 188,099,200
2044-2048 200,760,000 25,800,200 226,560,200
2049 35,915,000 1,077,700 36,992,700
$ 437,895,000 $ 320,232,100 $ 758,127,100
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RCTC 91 Express Lanes Fund
Notes to Financial Statements
June 30, 2023
Note 6. Long Term Obligations, Continued
2021 Toll Revenue Refunding Bonds, Series B-2:
Outstanding
In October 2021, the Commission issued $12,734,000 principal amount together with
the 2021 Series B-1 Senior Bonds, the 2021 Series B Senior Bonds exchanged for the
2013 Series A Senior Bonds accepted a tender for exchange. The outstanding 2021
Toll Revenue Refunding Bonds, Series B-2 mature in annual installments ranging from
$1,894,000 to $5,420,000 on various dates from June 1, 2044 to June 1, 2048 at an
interest rates of 3.000%. $ 1 2,734,000
Year Ending June 30 Principal Interest Total
2024
2025
2026
2027
2028
2029-2033
2034-2038
2039-2043
2044-2048
$ $ 382,000 $ 382,000
382,000 382,000
382,000 382,000
382,000 382,000
382,000 382,000
1,910,100 1,910,100
1,910,100 1,910,100
1,910,100 1,910,100
12,734,000 1,520,300 14,254,300
$ 12,734,000 $ 9,160,600 $ 21,894,600
2021 Toll Revenue Refunding Bonds, Series C: Outstanding
In October 2021, the Commission issued $75,695,000 principal amount at a premium
of $9,455,800, to (i) refund and prepay the remaining portion of the Commission's
outstanding TIFIA Obligations and (ii) pay certain costs of issuance of the 2021 Series
C Second Lien Bonds. The outstanding 2021 Toll Revenue Refunding Bonds, Series C
mature in annual installments ranging from $17,585,000, to $58,110,000 on various
dates from June 1, 2046 to June 1, 2047 at an interest rate of 4.000%.
$ 75,695,000
Year Ending June 30 Principal Interest Total
2024 $ - $ 3,027,800 $ 3,027,800
2025 - 3,027,800 3,027,800
2026 - 3,027,800 3,027,800
2027 - 3,027,800 3,027,800
2028 - 3,027,800 3,027,800
2029-2033 - 15,139,000 15,139,000
2034-2038 - 15,139,000 15,139,000
2039-2043 - 15,139,000 15,139,000
2044-2047 75,695,000 9,786,800 85,481,800
$ 75,695,000 $ 70,342,800 $ 146,037,800
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RCTC 91 Express Lanes Fund
Notes to Financial Statements
June 30, 2023
Note 6. Long Term Obligations, Continued
Lease Liability: The Fund has entered into agreements to lease certain assets. The lease agreements
qualify as other than short-term leases under GASB Statement No. 87 Leases, and therefore, have been
recorded at the present value of the future minimum lease payments at the date of its inception.
On November 11, 2019 the Fund entered into a 120 -month lease as a lessee for the use of 301 Corporate
Terrace Circle, Corona Ca. An initial lease liability was recorded in the amount of $379,834. As of June 30,
2023, the value of the lease liability is $291,176. The Fund is required to make quarterly fixed payments
of $12,172. The lease has an interest rate of 1.7670%. The value of the right to use asset as of June
30, 2023 was $379,834 with accumulated amortization of $98,022. The following table presents the
principal and interest payments to maturity:
Year Ending June 30 Principal Interest Total
2024
2025
2026
2027
2028
2029
Total
$ 45,948 $ 4,844 $ 50,792
47,975 4,018 51,993
50,039 3,157 53,196
51,988 2,259 54,247
53,669 1,330 54,999
41,557 368 41,925
$ 291.176 $ 15,976 $ 307,152
Note 7. Commitments and Contingencies
Cooperative agreements: The RCTC SR -91 Express lanes are jointly operated with the existing OCTA
91 Express Lanes and collectively referred to as the 91 Express Lanes.
Under the Orange -Riverside Cooperative Agreement, which was entered into in December 2011, the
Commission and OCTA agreed on the use of the same initial toll operator, cost and revenue sharing,
business rules, interoperability of technology, and marketing activities as well as OCTA review of design
plans and construction activities for the 91 Project.
In May 2013 the Commission entered into a three -party agreement with OCTA and the third -party
toll operator, for the operations of the 91 Express Lanes. This will ensure streamlined and consistent
intercounty travel for motorists on the OCTA 91 Express Lanes in Orange County and RCTC 91 Express
Lanes in Riverside County. The third -party operator provides operating services to the Commission in
the annual amount of $6,08,538 plus inflation for five initial years with two extension options, subject to
Board of Commissioners approval. The third -party operator is responsible for the day-to-day operations
of the toll facility; another contractor is responsible for maintaining the roadside toll collection system
under a separate agreement with the Commission. The agreement with the third -party operator expired
March 6, 2022.
In November 2019, the Commission awarded an agreement to the third -party operator to develop and
install a new back -office system and to provide express lane operator services, including the back office
and customer services center. The agreement is a three -party contract including OCTA. The contract has
a five-year term beginning upon completion and implementation of the new back -office system, plus
two 3 -year options, to operate both the OCTA and RCTC 91 Express Lanes. The operating term began
on March 7, 2022 with the conversion to the new back -office system.
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RCTC 91 Express Lanes Fund
Notes to Financial Statements
June 30, 2023
Note 7. Commitments and Contingencies, Continued
Purchase commitments: The Fund has entered into other agreements in the ordinary course of
business with companies and other governmental agencies related to operations and maintenance.
These agreements, which are significant, are funded with available and future revenues.
The Commission is party to an ongoing litigation which if settled, would be material to the Fund. Due
to the nature of the litigation outlays, if any, would be recorded as a capital asset in the fiscal year paid.
Note 8. Pensions and Other Post -Employment Benefits Other Than Pensions
The Fund participates in the Commission's cost -sharing multiple employer defined benefit pension
plan administered by the California Public Employees' Retirement System and the Commission's OPEB.
Employees of the Fund are employees of the Commission as a whole. The required note disclosures
regarding pension plans and OPEB are included in the Commission's financial statements. Please see
those financial statements for information about the pension plans and OPEB as a whole.
The net pension liabilities of $143,988 and net OPEB asset of $54,302, reported by the Fund,
represent the Fund's proportional share of the Commission's net pension liabilities of $1,868,313 and
net OPEB asset of $704,600. The Fund's net pension asset and net OPEB asset each represent 7% of
the Commission's net pension liability and net OPEB asset, respectively. For the year ended June 30,
2023, the Fund's contributions recognized as part of pension and OPEB expenses were $514,834 and
($42,652), respectively.
Note 9. Pronouncements Issued, Not Yet Effective
The GASB pronouncements issued prior to June 30, 2023 that have an effective date that may impact
future financial presentations include:
• GASB Statement No. 99, Omnibus 2022 (The requirements related to financial guarantees and
the classification and reporting derivative instruments within the scope of Statement 53 are
effective for fiscal years beginning after June 15, 2023, and all reporting periods thereafter).
• GASB Statement No. 100, Accounting Changes and Error Corrections, effective for fiscal years
beginning after June 15, 2023; and
• GASB Statement No. 101, Compensated Absences, effective for fiscal year beginning after
December 15, 2023.
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RIVERSIDE
COUNTY
TRANSPORTATION
COMMISSION
Riverside County
Transportation Commission
(951) 787-7141 www.rctc.org
4080 Lemon Street, 3rd Floor
P.O. Box 12008 • Riverside, CA
92502-2208
310
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3E IIRFri
RIVERSIDE
COUNTY
TRANSPORTATION
COMMISSION
312
15 Express Lanes Fund
(Enterprise Fund of the Riverside County Transportation Commission)
Financial Statements
For the Year Ended June 30, 2023
CONTENTS
Independent Auditor's Report
Management's Discussion and Analysis
Financial Statements
1
5
Statement of Net Position 13
Statement of Revenues, Expenses and Changes in Fund Net Position 14
Statement of Cash Flows 15
Notes to Financial Statements 17
313
RIVERSIDE
COUNTY
TRANSPORTATION
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314
RIVERSIDE
COUNTY
TRANSPORTATION
COMMISSION
316
EideBailly.
CPAs & BUSINESS ADVISORS
Independent Auditor's Report
Board of Commissioners
Riverside County Transportation Commission
Riverside, California
Report on the Audit of the Financial Statements
Opinion
We have audited the financial statements of the 15 Express Lanes Fund (the Fund), an enterprise fund of
the Riverside County Transportation Commission (the Commission) as of and for the year ended June 30,
2023, and the related notes to the financial statements as listed in the table of contents.
In our opinion, the accompanying financial statements referred to above present fairly, in all material
respects, the financial position of the 15 Express Lanes Fund of the Commission, as of June 30, 2023, and
the changes in financial position and cash flows thereof for the year then ended in accordance with
accounting principles generally accepted in the United States of America.
Basis for Opinion
We conducted our audit in accordance with auditing standards generally accepted in the United States
of America (GAAS). Our responsibilities under those standards are further described in the Auditor's
Responsibilities for the Audit of the Financial Statements section of our report. We are required to be
independent of Commission and to meet our other ethical responsibilities, in accordance with the
relevant ethical requirements relating to our audit. We believe that the audit evidence we have
obtained is sufficient and appropriate to provide a basis for our audit opinion.
Emphasis of Matter
As discussed in Note 1, the financial statements present only the 15 Express Lanes Fund and do not
purport to, and do not, present fairly the financial position of the Commission as of June 30, 2023, the
changes in its financial position, or, where applicable, its cash flows for the year then ended in
accordance with accounting principles generally accepted in the United States of America. Our opinion is
not modified with respect to this matter.
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10681 Foothill Blvd., Ste. 300 Rancho Cucamonga, CA'130-3831 T 909.466.4410 F 909.466.4431 EOE
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Responsibilities of Management for the Financial Statements
Management is responsible for the preparation and fair presentation of the financial statements in
accordance with accounting principles generally accepted in the United States of America; and for the
design, implementation, and maintenance of internal control relevant to the preparation and fair
presentation of financial statements that are free from material misstatement, whether due to fraud or
error.
Auditor's Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole
are free from material misstatement, whether due to fraud or error, and to issue an auditor's report
that includes our opinion. Reasonable assurance is a high level of assurance but is not absolute
assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS will always
detect a material misstatement when it exists. The risk of not detecting a material misstatement
resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery,
intentional omissions, misrepresentations, or the override of internal control. Misstatements are
considered material if there is a substantial likelihood that, individually or in the aggregate, they would
influence the judgment made by a reasonable user based on the financial statements.
In performing an audit in accordance with GAAS, we:
• Exercise professional judgment and maintain professional skepticism throughout the audit.
• Identify and assess the risks of material misstatement of the financial statements, whether due
to fraud or error, and design and perform audit procedures responsive to those risks. Such
procedures include examining, on a test basis, evidence regarding the amounts and disclosures
in the financial statements.
• Obtain an understanding of internal control relevant to the audit in order to design audit
procedures that are appropriate in the circumstances, but not for the purpose of expressing an
opinion on the effectiveness of the Commission's internal control. Accordingly, no such opinion
is expressed.
• Evaluate the appropriateness of accounting policies used and the reasonableness of significant
accounting estimates made by management, as well as evaluate the overall presentation of the
financial statements.
We are required to communicate with those charged with governance regarding, among other matters,
the planned scope and timing of the audit, significant audit findings, and certain internal control —related
matters that we identified during the audit.
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the management's
discussion and analysis, as listed in the table of contents, be presented to supplement the basic financial
statements. Such information is the responsibility of management and, although not a part of the basic
financial statements, is required by the Governmental Accounting Standards Board who considers it to
be an essential part of financial reporting for placing the basic financial statements in an appropriate
operational, economic, or historical context. We have applied certain limited procedures to the required
supplementary information in accordance with GAAS, which consisted of inquiries of management
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318
about the methods of preparing the information and comparing the information for consistency with
management's responses to our inquiries, the basic financial statements, and other knowledge we
obtained during our audit of the basic financial statements. We do not express an opinion or provide
any assurance on the information because the limited procedures do not provide us with sufficient
evidence to express an opinion or provide any assurance.
Rancho Cucamonga, California
October 31, 2023
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TRANSPORTATION
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EXPRESS
LANES
RIVERSIDE
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TRANSPORTATION
COMMISSION
MANAGEMENT'S
DISCUSSION & ANALYSIS
RIVERSIDE
COUNTY
TRANSPORTATION
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322
15 Express Lanes Fund
Management's Discussion and Analysis
For the Year Ended June 30, 2023
As management of the 15 Express Lanes Fund (the Fund), an enterprise fund of the Riverside County
Transportation Commission, we offer readers of the Fund financial statements this narrative overview
and analysis of the Fund's financial activities for the fiscal year ended June 30, 2023. We encourage
readers to consider information on financial performance presented in conjunction with the financial
statements that begin on page 11.
Financial Highlights
• At the end of fiscal year (FY) 2022/23, the total net position of the Fund was $262,717,804,
consisting of net investment in capital assets of $204,516,847, restricted net position for other
post -employment benefits of $87,940, and restricted net position of $58,113,017. The net
position increased $13,075,727 due to operating revenues outpacing operating expenditures
and transfers.
• Net position of $262,717,804 during FY 2022/23 reflects the position after the second full year of
toll operations. The 15 -mile stretch that includes two express lanes in each direction of the center
median along the Interstate (I) 15 corridor between Cajalco Road in Corona and State Route (SR)
60 in Jurupa Valley achieved final acceptance in FY 2022/23.
• In FY 2022/23, total operating revenues of $39,371,149 and include toll, violation penalty,
account fee, and miscellaneous revenues. Total operating expenses of $24,274,329 include but
not limited to: roadway and toll systems maintenance, customer service, back -office operations,
other support costs, and depreciation and amortization.
Overview of the Financial Statements
This discussion and analysis is intended to serve as an introduction to the Fund's financial statements.
The financial statements are comprised of the Fund financial statements and notes to the financial
statements.
The statement of net position presents information on all of the Fund's assets, liabilities, and deferred
outflows/inflows of resources, with the difference reported as net position. Over time, increases or
decreases in net position may serve as a useful indicator of whether the financial position of the Fund is
improving or deteriorating.
The statement of revenues, expenses and changes in fund net position presents information showing
how the Fund's net position changed during the fiscal year. All changes in net position are reported as
soon as the underlying event giving rise to the change occurs, regardless of the timing of related cash
flows. Thus, revenues and expenses are reported for some items that will only result in cash flows in
future fiscal periods.
The statement of cash flows presents information on the cash flows related to operating, noncapital
financing, capital and related financing, and investing activities.
The Fund financial statements can be found on pages 11-16 of this report.
Notes to the financial statements provide additional information that is essential to a full understanding
of the data provided in the financial statements. The notes to the financial statements can be found on
pages 17-27 of this report.
15 Express Lanes Financial Analysis
As noted previously, net position may serve over time as a useful indicator of the Fund's financial position.
At June 30, 2023, the Fund's net position was $262,717,804. Our analysis below focuses on net position
and changes in net position of the Fund's financial activities.
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323
15 Express Lanes Fund
Management's Discussion and Analysis
For the Year Ended June 30, 2023
15 Express Lanes Fund
Net Position
2023 2022
Current and other assets
Restricted assets
Capital assets, net
Total assets
Deterred outtlows of resources
Total assets and deferred outflows of resources
Current liabilities
Long-term liabilities
Total liabilities
Deferred inflows of resources
Total liabilities and deferred inflows of resources
7,935,644
79,347,151
356,731,106
444,013,901
11,458,973
46,950,436
368,116,699
426,526,108
443,606 477,196
444,457,507 427,003,304
4,908,401
176,126,926
5,044,271
171,412,545
181,035,327 176,456,816
704,376 904,411
181,739,703 177,361,227
Net position
Net investment in capital assets 204,516,847 215,902,440
Restricted 58,200,957 33,739,637
Total net position $ 262,717,804 $ 249,642,077
FY 2022/23 represents the second full year of toll operations for the Fund. Total assets and deferred
outflows of resources increased $17,454,203, or 4%, largely due to continued strong operating
performance, increasing restricted assets which includes the facilities cash investments related to toll
operations. Total liabilities and deferred inflows of resources increased $4,378,476, or 2%, primarily due
to increases in toll supported long-term debt related to accreted and compounded interest.
The Fund's net investment in capital assets was $204,516,847 in FY 2022/23. The Fund's net position
reflects its investment in capital assets (i.e., land and land improvements; buildings; toll infrastructure;
equipment, furniture and fixtures; and toll facility franchise), less any related outstanding debt used to
acquire these assets. The Fund uses these capital assets, which include intangible assets, to provide
improved mobility for the Fund customers and commuters along the 1-15 corridor.
Restricted net position, representing resources subject to external restrictions on how they may be used,
was $58,200,957 and represents 22% of the total net position at June 30, 2023.
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15 Express Lanes Fund
Management's Discussion and Analysis
For the Year Ended June 30, 2023
The analysis below focuses on the changes in net position.
15 Express Lanes Fund
Changes in Net Position
2023 2022
Operating revenues
Toll, penalties, and tees
Total operating revenues
Operating expenses
Management and operational services
Administrative overhead
Other operating expenses
Processional services
General and administrative
Depreciation and amortization
Total operating expenses
Operating income
$
39,371,149 $ 37,259,442
39,371,149
37,259,442
9,729,858 10,514,267
337,800 305,200
191,108 173,980
466,264 499,955
896,386 (19,871)
12,652,913 10,899,738
24,274,329 22,373,269
15,096,820 14,886,173
Nonoperating revenues(expenses)
Investment income(loss) 1,594,076 (430,015)
Interest expense (5,055,596) (4,859,834)
Total nonoperating revenues (expenses) (3,461,520) (5,289,849)
Income before contributions and transfers
11,635,300 9,596,324
Contributions trom Commission govern mental to nds 1,263,354 13,138,929
Transfers from Commission governmental funds 177,116 35,380
Transfers to enterprise funds (43)
Transfers to Commission governmental funds - (4,325,708)
Total contributions and transfers 1,440,427 8,848,601
Change in net position
Total net position at beginning otyear
Total net position at end of year $ 262,717,804 $ 249,642,077
13,075,727 18,444,925
249,642,077 231,197,152
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325
15 Express Lanes Fund
Management's Discussion and Analysis
For the Year Ended June 30, 2023
The Fund's operating revenues increased $2,111,707, or 6%, due to increased traffic volumes in FY
2022/23. Total operating expenses increased $1,901,060, or 8% due to net pension benefits expenses
compared to net pension benefits credit in FY2021/22. Additionally, depreciation and amortization
increased due to depreciation on capital assets. Nonoperating incomes and expenses, net increase of
$1,828,329, or 35%, is due to positive investment income, offset by toll supported long-term debt related
to accreted and compounded interest. Net contributions and transfers from the Commission decreased
by $7,408,174, or 84%, as a result of the prior year's contribution of capital and intangible assets, offset
by the transfer of toll -supported long-term debt related to the 1-15 Express Lanes project. Total traffic
volume on the 15 Express Lanes Fund during FY 2022/23 was approximately 25,577,400 transactions.
Capital Assets
As of June 30, 2023, the Fund had $356,731,106, net of accumulated depreciation and amortization,
invested in a broad range of capital assets including: land and land improvements; buildings; toll
infrastructure comprised of communication equipment and computer hardware and software;
equipment, furniture, and fixtures; and toll facility franchise.
15 Express Lanes Fund
Capital Assets, Net of Depreciation
2023 2022
Land and land improvements
Toll infrastructure
Toll facility franchise
Buildings
Equipment, furniture, and fixtures
Total capital assets, net
611,755 $
12,715,942
338,569,119
4,789,768
44,522
611,755
18,415,058
343,502,929
5,512,593
74,364
$ 356,731,106 $ 368,116,699
More detailed information about the Fund's capital assets is presented in note 5 to the financial
statements.
Debt Administration
As of June 30, 2023, the Fund had $167,030,355 outstanding in a Transportation Innovation Finance and
Infrastructure Act (TIFIA) loan and $9,000,000 outstanding from an advance from Commission Measure
A revenues.
15 Express Lanes Fund
Outstanding Debt
2023 2022
TIFIA loan
Advance from Commission fund
Total outstanding debt
167,030,355 $ 162,385,853
9,000,000 9,000,000
$ 176,030,355 $ 171,385,853
Additional information on long-term debt can be found in note 7 to the financial statements.
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326
15 Express Lanes Fund
Management's Discussion and Analysis
For the Year Ended June 30, 2023
Economic and Other Factors
The Fund makes up $34,024,500 or 4% of Commission's FY 2023/24 revenue budget. In FY 2023/24,
toll and non -toll revenues are forecasted to increase by less than 1% over the FY 2022/23 budget. This
increase is due to higher than anticipated revenues received during FY 2022/23 largely as a result of
tolls collected within the southern terminus of the Enterprise. The average projected long-term rate of
growth for toll road revenues beyond FY 2023/24 is 2.3%.
The majority of expenses related to the Fund within FY 2023/24 budget are on -going general costs
related to day-to-day operations of the toll facility. As a fully electronic toll facility, motorists pay tolls
through the convenient use of FasTrak® transponders that automatically deduct toll charges from a
prepaid account.
1-15 Corridor Freight and Express Lanes Project: The Commission and San Bernardino County
Transportation Agency (SBCTA) entered into a Cooperative Agreement (Agreement) on May 24,
2023, formalizing the coordination of the toll facilities between Riverside and San Bernadino counties;
collectively referred to as the 1-15 Corridor Freight and Express Lanes project or 1-15 Next. Specifically,
the Agreement requires the Commission to assign approximately 2.2 miles of its existing RCTC 15 Toll
Lanes to SBCTA in exchange for annual toll revenue payments payable by SBCTA.
The assignment is made by the Commission to SBCTA in preparation for planning and constructing a toll
facility within the median of 1-15. Construction by SBCTA is anticipated to begin during calendar year
2024 with an estimated completion date of summer 2026.
As of June 30, 2023, no impacts have been incurred by the existing RCTC 15 Express Lanes as a result of
entering into this Agreement. However, SBCTA will reimburse RCTC 15 Express Lanes for any impacts
during construction phase of the project. Furthermore, assignment of the RCTC 15 Express Lanes will
not occur until sixty (60) days prior to project completion estimated to occur during calendar year 2026.
Contacting 15 Express Lane's Management
This financial report is designed to provide a general overview of the Fund's finances for all those with
an interest in the government's finances and to demonstrate the Fund's accountability for the money it
receives. Questions concerning any of the information provide in this report or requests for additional
information should be addressed to the Chief Financial Officer, Finance Department at the Riverside
County Transportation Commission, 4080 Lemon Street, 3rd Floor, P.O. Box 12008, Riverside, CA 92502-
2208.
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15 Express Lanes in Norco
RIVERSIDE
COUNTY
TRANSPORTATION
COMMISSION
FINANCIAL
STATEMENTS
RIVERSIDE
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TRANSPORTATION
COMMISSION
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15 Express Lanes Fund
(Enterprise Fund of the Riverside County Transportation Commission)
Statement of Net Position
June 30, 2023
Assets
Current assets:
Cash and investments $ 3,998,481
Receivables
Accounts 3,079,871
Interest 104,147
Lease 91,895
Prepaid expenses 142,971
Total current assets 7,417,365
Noncurrent assets:
Restricted cash and investments 79,347,151
Lease receivable 490,456
Net other post -employment benefits assets 27,823
Capital assets, net
Nondepreciable 611,755
Depreciable and amortizable 356,119,351
Total noncurrent assets 436,596,536
Total assets 444,013,901
Deferred outflows of resources
Pension benetits
Other post -employment benefits
362,612
80,994
Total assets and deferred outflows of resou rces 444,457,507
Liabilities
Current liabilities:
Accounts payable 2,366,145
Interest payable 1,697,411
Due to other Commission funds 110,655
Other liabilities 698,738
Compensated absences liability 35,452
Total current liabilities 4,908,401
Noncurrent liabilities:
Net pension liabilities 73,776
Compensated absences liabilities 22,795
Advance from other Commission funds 9,000,000
Bonds payable - due in more than one year 167,030,355
Total noncurrent liabilities 176,126,926
Total liabilities 181,035,327
Deferred inflows of resources
Pension benefits 119,875
Other post -employment benefits 20,877
Lease revenues 563,624
Total liabilities and deferred inflows of resources 181,739,703
Net position
Net investment in capital assets 204,516,847
Restricted tor other post -employment benefits 87,940
Restricted for express lanes 58,113,017
Total net position $ 262,717,804
See notes to financial statements
331
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15 Express Lanes Fund
(Enterprise Fund of the Riverside County Transportation Commission)
Statement of Revenues, Expenses and Change in Fund Net Position
For the Year Ended June 30, 2023
Operating revenues
Tolls, penalties, and fees
$ 39,371,149
Operating expenses
Management and operational services 9,729,858
Administrative overhead 337,800
Other operating expenses 191,108
Professional services 466,264
General and administrative expenses 896,386
Depreciation and amortization 12,652,913
Total operating expenses
Operating income
Nonoperating revenues(expenses)
Investment income (loss)
Interest expense
24,274,329
15,096,820
1,594,076
(5,055,596)
Total nonoperating revenues(expenses) (3,461,520)
Income before contributions and transfers 11,635,300
Contributions and transfers
Contributions from Commission governmental activities 1,263,354
Transfers in from Commission governmental activities 177,116
Transfers out to other Enterprise fund (43)
Total contributions and transfers 1,440,427
Change in net position 13,075,727
Net position at beginning otyear 249,642,077
Net position at end of year
See notes to financial statements
$ 262,717,804
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332
15 Express Lanes Fund
(Enterprise Fund of the Riverside County Transportation Commission)
Statement of Cash Flows
For the Year Ended June 30, 2023
Cash flows from operating activities
Receipts from customers and users $ 35,225,381
Payments to vendors (3,994,037)
Payments to employees (556,301)
Payments for RCTC interfund services used (331,600)
Reimbursements received for lease costs 50,040
Net cash provided by operating activities 30,393,483
Cash flows from noncapital financing activities
Transfers from governmental activities for operations and maintenance
Net cash used for non capital financing activities
Cash flows from capital and related financing activities
Payment for acquisition of capital assets
Net cash used for capital and related financing activities
Cash flows from investing activities
Interest received
Net cash used for investing activities
335,158
335,158
(3,966)
(3,966)
1,385,014
1,385,014
Net increase in cash and cash equivalents 32,109,689
Cash and cash equivalents at beginning of year 51,315,666
Cash and cash equivalents at end of year
Reconciliation otcash and cash equivalents to statement ot net position
Cash and investments
Add: fair value adjustment
Restricted cash and investments
Total cash and cash equivalents
See notes to financial statements
$ 83,425,355
3,998,481
79,723
4,078,204
79,347,151
$ 83,425,355
333
-15-
15 Express Lanes Fund
(Enterprise Fund of the Riverside County Transportation Commission)
Statement of Cash Flows, Continued
For the Year Ended June 30, 2023
Reconciliation of operating income (loss) to net cash
provided by (used for) operating activities
Operating income
Adjustments to reconcile operating income to net cash
provided by (used for) operating activities
Depreciation and amortization expense
Change in assets and liabilities
(Increase) Decrease in other receivables, net
(Increase) Decrease in prepaid assets
Increase (Decrease) in pension and post -employment benefit liabilities, net of deferred items
Increase (Decrease) in lease receivable, net of deferred items
Increase (Decrease) in accounts payable
Increase (Decrease) in due to other Commission funds
Increase (Decrease) in compensated absences liability
Increase (Decrease) in other liabilities
Total adjustments
Net cash provided by operating activities
$ 15,096,820
12,652,913
2,823,119
50,400
330,306
(9,216)
(885,541)
9,221
6,758
318,703
15,296,663
$ 30,393,483
Noncash capital, financing and investing activities
Accreted and compounded interest on TIFIA Loan $ 4,644,502
Compounded interest on advance from other Commission fund 400,253
Net increase (decrease) in the fair value of investments (79,723)
Contributions of capital and intangible assets from Commission governmental activities 1,263,354
Transfers in of accrued investment income from Commission governmental activities 177,116
See notes to financial statements
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334
15 Express Lanes Fund
Notes to Financial Statements
June 30, 2023
Note 1. Reporting Entity
After more than a decade of work, which includes approximatelythree years of construction,the Riverside
County Transportation Commission (Commission) achieved substantial completion on the 1-15 Express
Lanes Project on April 10, 2021. In achieving substantial completion, the 15 Express Lanes opened to
traffic; tolling commenced on April 14, 2021. The 15 -mile stretch includes two lanes in each direction of
the center median along the Interstate (I) 15 corridor between Cajalco Road in Corona and State Route
(SR) 60 in Jurupa Valley.
The 15 Express Lanes Fund (Fund) is reported as a major enterprise fund in the Commission's basic
financial statements. The accompanying financial statements present the net position, changes in net
position, and cash flows of the Fund only. They do not purport to, and do not, present the overall
financial position of the Commission or its changes in net position as of June 30, 2023.
Note 2. Summary of Significant Accounting Policies
The accounting policies of the Fund are in conformity with generally accepted accounting principles
applicable to governmental units. The Governmental Accounting Standards Board (GASB) is the
accepted standard -setting body for establishing accounting and financial reporting principles.
Basis of Accounting: The financial statements of the Fund are reported using the economic resources
measurement focus and the accrual basis of accounting. Revenues consisting substantially of tolls and
fees, are recorded when earned, and expenses are recorded when a liability is incurred, regardless
of the timing of related cash flows. Toll revenue is recognized when the customers utilize the toll road
facility and payment is collected.
Enterprise funds distinguish operating revenues and expenses from nonoperating items. Operating
revenues and expenses generally result from providing services in connection with an enterprise fund's
principal and ongoing operations.The principal operating revenues of the Fund are charges to customers
for use of the toll facility. Operating expenses for the Fund include the cost of services, administrative
expenses, and depreciation and amortization on capital and intangible assets. All revenues and expenses
not meeting this definition are reported as nonoperating revenues and expenses.
Violations: Violations consist of uncollected violation tolls and penalties. Unpaid violations of
$29,275,372 as of June 30, 2023 are not recognized as revenue until payment is received. If violations
and penalties remain owed for more than 90 days, they are attached to the registration for the violation
vehicle. Unpaid violations will remain recorded for a period of four years in accordance with the statute
of limitations, at which time, they will be deemed uncollectible.
Cash and investments: The Commission maintains cash and investments in accordance with the
Investment Policy adopted by the Board of Commissioners in December 2022. The Investment Policy
complies with the California Government Code (Code). Investments of bond proceeds as permitted by
the applicable debt documents are maintained with U.S. Bank as trustee. Separate investment accounts
are maintained for the proceeds of bond issues, with the earnings for each bond issue accounted for
separately. The Fund participates in the Riverside County Pooled Investment Fund (RCPIF). Cash from
other Commission revenue sources is commingled for investment purposes in the RCPIF, with investment
earnings allocated to the different accounts based on average daily account balances.
The Commission holds investments that are measured at fair value on a recurring basis. Investments in
U.S. Treasury obligations, U.S. agency securities, and mortgage and asset -backed securities are carried
at fair value based on quoted market prices, except for money market investments, which are carried
at amortized cost which approximates fair value. The RCPIF is carried at fair value based on the value of
each participating dollar as provided by RCPIF.
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335
15 Express Lanes Fund
Notes to Financial Statements
June 30, 2023
Note 2. Summary of Significant Accounting Policies, Continued
Cash and cash equivalents: For the purpose of the statement of cash flows, the Commission considers
all short-term investments with an initial maturity of three months or less to be cash equivalents. All
deposits, commercial paper notes, money market funds, negotiable certificates of deposit, and the
Fund's share of the RCPIF represent cash and cash equivalents for cash flow purposes.
Restricted cash and investments: Investments set aside in the Senior Lien Obligations Reserve Fund,
Second Lien Obligations Reserve Fund, Subordinate Lien Obligations Reserve Fund, and Residual Fund
Scheduled Retained Balance Fund are pursuant to the terms of the 2017 Indenture and their use is
limited by applicable debt terms and conditions.
Permitted investments per the debt indentures include government obligations, State of California
and local agency obligations, banker's acceptances, commercial paper notes, negotiable certificates
of deposit, repurchase agreements, money market funds, other mutual funds, investment agreements,
RCPIF, and variable and floating rate securities.
Receivables: Accounts receivables include amounts due from other California toll road agencies related
to their customers' use of the 15 Express Lanes.
Capital assets: Capital assets include land and land improvements; toll infrastructure; buildings;
equipment, furniture and fixtures; and toll facility franchise. Capital assets are defined by the Fund as
assets with an initial, individual cost of more than $100,000 and a useful life in excess of three years. Such
assets are recorded at historical cost. The costs of normal maintenance and repairs that do not add value
to the asset or materially extend asset lives are not capitalized.
Capital assets are depreciated using the straight-line method over the following estimated useful lives:
Asset Type Useful Life
Buildings 10 years
Equipment, furniture and fixtures 3 to 5 years
Toll facility franchise 50 years
Toll infrastructure 5 to 10 years
The Commission entered into a toll facility agreement with California's Department of Transportation
(Caltrans) and obtained authority to toll the 1-15 corridor between Cajalco Road and SR -60 for 50 years
commencing as of the first day on which the 15 Express Lanes open for public use and toll operations
through April 2071. The 15 Express Lanes opened on April 10, 2021.
Deferred outflows of resources: In addition to assets, the statement of net position reports a separate
section for deferred outflows of resources. This separate financial statement element represents a
consumption of net position that applies to a future period and so will not be recognized as an outflow
of resources (expense) until then. As of June 30, 2023, the Fund has deferred outflows of resources
related to pension and other post -employment benefits (OPEB).
Due to other Commission funds: During the course of operations, transactions occur between
Commission governmental funds involving goods provided and services rendered.
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336
15 Express Lanes Fund
Notes to Financial Statements
June 30, 2023
Note 2. Summary of Significant Accounting Policies, Continued
Compensated absences: Vacation hours accumulated and not taken at year-end is reported as a long-
term liability, net of current portion, in the Fund.
Sick leave is recorded as an expense when taken by the employee. Employees with continuous five years
of service have the option of being paid for sick leave accumulated in excess of 240 hours at a rate of
50% (i.e., one hour's pay for every two hours in excess of 240). Any sick leave in excess of 240 hours is
accrued at fiscal year-end, and a liability is reported in the Fund.
Pensions: For purposes of measuring the net pension liability and deferred outflows/inflows of
resources related to pensions and pension expense, information about the fiduciary net position of the
Commission's California Public Employees' Retirement System (CaIPERS) plans (Plans) and additions
to/deduction from Plans' fiduciary net position have been determined on the same basis as they are
reported by CaIPERS. For this purpose, benefit payments (including refunds of employee contributions)
are recognized when due and payable in accordance with benefit terms. Investments are reported at fair
value.
Post -employment benefits other than pensions: For purposes of measuring the net OPEB asset,
deferred outflows/inflows of resources related to the OPEB asset and OPEB expense, information
about the fiduciary net position of the Commission's OPEB plan, and additions to/deductions from the
OPEB fiduciary net position have been determined on the same basis as they are reported by California
Employers' Retiree Benefit Trust administered by CaIPERS. For this purpose, benefit payments are
recognized when due and payable in accordance with benefit terms. Investments are reported at fair
value, except for money markets and participating interest -earning investment contracts that have a
maturity at the time of purchase of one year or less, which is reported at cost.
Deferred inflows of resources: In addition to liabilities, the statement of net position reports a separate
section for deferred inflows of resources. This separate financial statement element represents an
acquisition of net position that applies to a future period and will not be recognized as an inflow of
resources, or revenue, until then. The Fund has deferred inflows of resources related to pension, OPEB,
and leases.
Risk management: The Fund purchases commercial property insurance including business interruption,
earthquake, and flood coverage related to the toll facility.
Net position: Net position represents the difference between assets plus deferred outflow of resources
and liabilities plus deferred inflow of resources and is classified into two categories:
• Net investment in capital assets consists of capital and intangible assets, net of accumulated
depreciation, reduced by the outstanding balances of any borrowings used for the acquisition,
construction, or improvement of those assets and excludes unspent debt proceeds.
• Restricted net position represents restricted assets less liabilities related to those assets.
Restricted assets are recorded when there are limitations imposed by creditors (such as through
debt covenants). The statement of net position includes restricted net position for the portion of
net toll revenues restricted by the 2017 Master Indenture for toll operations.
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337
15 Express Lanes Fund
Notes to Financial Statements
June 30, 2023
Note 2. Summary of Significant Accounting Policies, Continued
Use of estimates: The preparation of the financial statements in conformity with accounting principles
generally accepted in the United States requires management to make estimates and assumption that
affect certain reported amounts and disclosures during the reporting period. As such, actual results
could differ from those estimates.
Note 3. Cash and Investments
Cash and investments are comprised of the following at June 30, 2023:
Cash in bank
Investments
With RCPIF
With Trustee
Total investments
Total cash and investments
Total cash and investments are reported in the financial statements as:
Unrestricted cash and investments
Restricted cash and investments
Total cash and investments
$ 1,034,781
3,813,010
78,497,841
82,310,851
$ 83,345,632
$ 3,998,481
79,347,151
$ 83,345,632
Fair Value Hierarchy: The Commission categorizes its fair value measurements within the fair value
hierarchy established by generally accepted accounting principles. The hierarchy is based on the
valuation inputs used to measure fair value of the assets. Level 1 inputs are quoted prices in an active
market for identical assets; Level 2 inputs are based on similar observable assets either directly or
indirectly, which may include inputs in markets that are not considered to be active; and Level 3 inputs
are significant unobservable inputs (the Commission does not value any of its investments using Level
3 inputs).
r
EXPRESS LANES
County
TO® Line
TRANSPONDER REQUIRED
-20-
338
15 Express Lanes Fund
Notes to Financial Statements
June 30, 2023
Note 3. Cash and Investments, Continued
The following is a summary of the fair value hierarchy of the fair value of investments of the Fund as of
June 30, 2023:
Investments by fair value level:
June 30, 2023
Fair Value Measurements Using
Quoted Prices in Active
Markets for Identical
Assets (Level 1)
Significant Other Observable
Inputs (Level 2)
Investments subject to fair value hierarchy:
Mortgage and asset -backed securities
U.S.Treasury obligations
Money market mutual funds
U.S. agency securities
Total investments measured at fair value
Investments not subject to fair value hierarchy:
RCPIF
Total investments
$ 3,771,821 $
8,416,501
63,080,795
3,228,724
8,416,501
63,080,795
$ 3,771,821
3,228,724
78,497,841 $ 71,497,296 $ 7,000,545
3,813,010
$ 82,310,851
Investments classified in Level 1 of the value hierarchy, valued at $71,497,296 are valued using quoted
prices in active markets.
Mortgage and asset -backed securitiestotaling $3,771,821 and U.S. agency securitiestotaling $3,228,724
classified in Level 2 of the fair value hierarchy, are valued using matrix pricing techniques maintained by
various pricing vendors. Matrix pricing is used to value securities based on the securities' relationship
to benchmark quoted prices. Fair value is defined as the quoted market value on the last trading day of
the period. These prices are obtained from various pricing sources by the custodian bank.
As of June 30, 2023, the Fund has the following investments:
Weighted Average
Investments Fair Value Principal Interest Rate Range Maturity Range Maturity (Years)
RCPIF
Held byTrustee
Money market mutual funds
Mortgage and asset -backed
securities
U.S. agency securities
U.S.Treasury obligations
Total Investments
$3,813,010 $3,892,733 0.210%-6.000% 6/30/23 - 6/30/28 1.300
63,080,795
3,771,821
3,228,724
8 416 501
63,080,795
4,023,553
3,258,322
8,539,532
$82,310,851 $82,794,935
4.706% N/A 20 days or 0.055
1.080%-4.077% 1/25/24 -12/15/42 5.907
0.305%-5.508% 10/27/23 - 3/25/27 1.405
0.127%-4.063% 10/15/23 - 2/28/26 1.520
Portfolio weighted average 10.187
The weighted average maturity is calculated using the investment's effective duration weighted by the
investment's fair value.
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339
15 Express Lanes Fund
Notes to Financial Statements
June 30, 2023
Note 3. Cash and Investments, Continued
The weighted average maturity is calculated using the investment's effective duration weighted by the
investment's fair value.
As of June 30, 2023, mortgage and asset -backed securities fair value totaled $3,771,821.The underlying
assets are consumer receivables that include credit cards, auto/equipment, and home loans. The
securities have a fixed interest rate and are rated Aaa/AAA by least two of the three nationally recognized
statistical rating organizations.
Deposits and withdrawals in the RCPIF are made on the basis of $1.00 (cost basis) and not fair value.
Accordingly, the Fund's investment at June 30, 2023 is uncategorized, not defined as Level 1, Level 2, or
Level 3 input.
Interest rate risk: While the Commission does not have a formal policy related to the interest rate risk
of investments, the Commission's investment policy follows the Code as it relates to limits on investment
maturities as a means of managing exposure to fair value losses arising from increasing interest rates. In
accordance with the Commission's investment policy, restricted investments are invested in accordance
with the maturity provisions of the specific bond indenture, which may extend beyond five years.
Custodial credit risk: Custodial credit risk for deposits is the risk that, in the event of the failure of a
depository financial institution, a government will not be able to recover its deposits or will not be able
to recover collateral securities that are in the possession of an outside party. The custodial credit risk
for investments is the risk that, in the event of the failure of the counterparty (e.g., broker -dealer) to a
transaction, a government will not be able to recover the value of its investment or collateral securities
that are in the possession of another party. The Commission's investment policy requires that a third -
party bank trust department hold all securities owned by the Commission. All trades are settled on a
delivery versus payment basis through the Commission's safekeeping agent.
The Fund's cash deposits are included in the overall Commission's deposits. Bank balances over
$5,000,000 are swept daily into a money market account. Of the bank balance, up to $250,000 is
federally insured under the Federal Depository Insurance Corporation with balances in excess of
$250,000 collateralized in accordance with the Code; however, the collateralized securities are not held
in the name of the Commission.
Credit risk: The Commission's investment policy as well as the specific bond indentures set minimum
acceptable credit ratings for investments from any of the three nationally recognized statistical rating
organizations. The following table is a summary of the credit quality distribution and concentration of
credit risk by investment type as a percentage of each category's fair value at June 30, 2023; securities
denoted as NR are not rated by one of the nationally recognized statistical rating organizations.
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340
15 Express Lanes Fund
Notes to Financial Statements
June 30, 2023
Note 3. Cash and Investments, Continued
Investments
oody.M5 % of Portfolio
RCPIF
Money market mutual funds
Funds
Mortgage and asset backed securities
Securities
Securities
U.S. agency securities
Notes
Notes
U.S. Treasuries
Treasury
Treasury
Total
Aaa-bf
NR
AM AAA
NR AA+
NR MA
AAA AA+
AAA NR
AAA NR
NR AA+
4.59%
76.88%
4.30%
0.23%
3.29%
0.59%
8.95%
1.17%
100.00%
Concentration of credit risk: The Commission's investment policy places a limit of 10% on the amount
of investment holdings with any one non-U.S. Government or non-federal agency issuer. As of June 30,
2023, the Commission did not have investments in any one issuer that represents more than 5% of the
Commission's total investments.
Note 4. Lease Receivable
For the year ended June 30, 2023, the financial statements include the adoption of GASB Statement
No. 87, Leases. The primary objective of this statement is to enhance the relevance and consistency
of information about the Commission's leasing activities. This statement establishes a single model for
lease accounting based on the principle that leases are financings of the right to use an underlying asset.
Under this statement, a lessee is required to recognize a lease liability and an intangible right to use
lease asset, and a lessor is required to recognize a lease receivable and a deferred inflow of resources.
The 15 Express Lanes is the owner of a building within the City of Corona which is leased by both
Orange County Transportation Authority (OCTA) and the Riverside Transportation Commission (RCTC)
91 Express Lanes. Detailed information for each lease is noted below.
On November 1, 2019, the Fund entered a 120 -month lease for the use of 301 Corporate Terrace Circle,
Corona, Ca with the Orange County Transportation Authority. An initial lease receivable was recorded in
the amount of $379,833. As of June 30, 2023, the value of the lease receivable is $291,176. The lessee
is required to make quarterly fixed payments of $12,171. The lease has an interest rate of 1.7670%. The
value of the deferred inflow of resources as of June 30, 2023 was $281,812 and the Fund recognized
lease revenue of $49,011.
On November 1, 2019, the Fund entered a 120 -month lease for the use of 301 Corporate Terrace Circle,
Corona, Ca with the RCTC 91 Express Lanes Enterprise Fund. An initial lease receivable was recorded in
the amount of $379,833. As of June 30, 2023, the value of the lease receivable is $291,175. The lessee
is required to make quarterly fixed payments of $12,171. The lease has an interest rate of 1.7670%. The
value of the deferred inflow of resources as of June 30, 2023 was $281,812 and the Fund recognized
lease revenue of $49,011.
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341
15 Express Lanes Fund
Notes to Financial Statements
June 30, 2023
Note 4. Lease Receivable, Continued
In accordance with the standard, the principal and interest expected to maturity is as follows:
Year Ending June 30
1.
Principal nterest
Total A
2024 $ 91,895
2025 95,950
2026 100,077
2027 103,977
2028 107,337
2029-2032
Total lease receivable
9,687 $ 101,582
8,037 103,987
6,314 106,391
4,518 108,495
2,661 109,998
83,115 735 83,850
$ 582.351 $ 31.952 $ 614.30
Note 5. Capital Assets
Balance Capital
June 30, 2022 Contributions Transfers Additions June 30, 2023
Balance
Capital assets not being depreciated:
Land and land improvements $ 558,405 $ $ $ $ 558,405
Construction easements 53,350 - - 53,350
Total capital assets not being depreciated 611,755 - - 611.755
Capital assets being depreciated and
amortized:
Toll infrastructure 22,219,984 - - (860,110) 21,359,874
Buildings 6,451,978 - - 6,451,978
Equipment, furniture, and fixtures 111,155 - 3,966 - 115,121
Toll facility franchise 352,233,039 2,123,464 - 354,356,503
Total capital assets being depreciated and 381,016,156 2,123,464 3,966 (860,110) 382,283,476
amortized:
Less accumulated depreciation and
amortization for:
Toll infrastructure (3,804,926) - (4,839,006) - (8,643,932)
Buildings (939,385) - (722,825) - (1,662,210)
Equipment, furniture, and fixtures (36,791) - (33,808) - (70,599)
Toll facility franchise (8,730,110) - (7,057,274) - (15,787,384)
Total accumulated depreciation (13,511,212) - (12,652,913) - (26,164,125)
Total capital assets being depreciated and 367,504,944 2,123,464 (12,648,947) (860,110) 356,119,351
amortized, net
Capital assets, net $ 368,116,699 $ 2,123,464 $ (12,648,947) $ (860,110) $ 356,731,106
On September 29, 2016, the Commission entered into a toll facilities agreement with Caltrans providing
the Commission with authorization to toll the 1-15 from Cajalco Road to SR -60 for 50 years commencing
as of the first day on which the 15 Express Lanes open for public use and toll operations. The agreement
also set forth the Commission's rights to Caltrans' right of way and Caltrans' oversight role in the
operations and maintenance of the 15 Express Lanes.
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342
15 Express Lanes Fund
Notes to Financial Statements
June 30, 2023
Note 6. Interfund Transactions
Due from/to other Commission funds: The composition of balances related to due from other funds
and due to other funds of the Commission at June 30, 2023 is as follows:
Payable Fund
Receivable Fund
Amount Explanation
15 Express Lanes Enterprise fund
15 Express Lanes Enterprise fund
Total due from (to) other Commission funds,
net
Commission's General fund
Commission's General fund
$ (78,200) Administrative cost allocation
(32,455) Fringe benefits allocation
$ (110,655)
Contributions and transfers to/from other Commission funds: During 2023, contributions and
transfers to/from other Commission funds were as follows:
Contribution and Transfer Out
Contribution and Transfer In
Amount Explanation
Commission's Governmental activities 15 Express Lanes Enterprise fund
Commission's Governmental activities 15 Express Lanes Enterprise fund
Commission's Governmental activities 15 Express Lanes Enterprise fund
Commission's Capital Projects fund 15 Express Lanes Enterprise fund
15 Express Lanes Enterprise fund
Total contributions/transfers in from
other Commission funds, net
91 Express Lanes Enterprise fund
$ 1,263,354
981
175,826 Transfer of lease revenues
309 Transfer of interest from operations
(43) Transfer of accumulated interest
$ 1,440,427
Contribution of capital and
intangible assets
Transfer of interest from ramp up
reserve
Advances from other funds: A Commission governmental fund advanced $9,000,000 to the 15 Express
Lanes Fund to establish an $18,000,000 Transportation Infrastructure Finance and Innovation Act (TIFIA)
debt service reserveforthe 1-15 Express Lanes project as required no laterthan June 30, 2024. Capitalized
interest on the advance as of June 30, 2022, was $1,402,677. Repayment of this initial Commission
advance is subject to satisfying certain conditions under the related indenture, including the occurrence
of the second anniversary of the TIFIA debt service payment commencement date.
Note 7. Long Term Obligations
The following is a summary of changes in long-term obligations for the year ended June 30, 2023:
Balance Additions / Reductions Balance Due Within
June 30, 2022 Accretion June 30, 2023 One Year
TIFIA loan $ 162,385,853 $ 4,644,502 $ - $ 167,030,355 $
Compensated absences liability 51,489 45,674 (38,916) 58,247 35,452
Total long-term obligations $ 162,437,342 $ 4,690,176 $ (38,916) $ 167,088,602 $ 35,452
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343
15 Express Lanes Fund
Notes to Financial Statements
June 30, 2023
Note 7. Long Term Obligations, Continued
In May 2017, the Commission authorized the issuance and sale of not to exceed $165 million of toll
revenue bonds related to the 15 Express Lanes Project. The TIFIA loan is a senior toll revenue bond per
the 1-15 Express Lanes Project indenture.
TIFIA Loan Agreement:
Outstanding
In July 2017, the Commission executed a TIFIA loan of up to $152,214,260, which
proceeds financed a portion of the costs for the 1-15 Express Lanes Project. During
construction and for a period of up to five years following substantial completion,
interest is compounded and added to the initial TIFIA loan. The TIFIA loan requires
mandatory debt service payments at a minimum and scheduled debt service payments
to the extent additional funds are available. TIFIA debt service payments are expected
to commence on December 1, 2025, which is five years after substantial completion of
the 1-15 Express Lanes Project, through December 1, 2055. The interest rate of the TIFIA
loan is 2.84%. During 2023, $0 was drawn on the TIFIA loan and $4,644,502 interest
was compounded.
$ 167,030,355
In accordance with the TIFIA loan schedule, the annual debt service requirements to maturity for the
TIFIA loan payable throughout the term of the loan are as follows:
Year Ending June 30
Principal
Interest Total
2026
2027
2028
2029-2033
2034-2038
2039-2043
2044-2048
2049-2053
2054-2055
Total
Future compounded interest
Total TIFIA loan
4,017,700
17,483,200
21,475,000
40,678,500
64,144,700
28,922,600
176,721,700
(9,691,345)
$ 167,030,355
$ 5,018,900
5,018,900
5,025,800
24,942,900
23,762,300
20,852,900
17,012,300
9,709,600
1,291,600
$ 112,635,200
$ 5,018,900
5,018,900
5,025,800
28,960,600
41,245,500
42,327,900
57,690,800
73,854,300
30,214,200
$ 289,356,900
Pursuant to the 1-15 Express Lanes Project toll indenture the Commission is required to establish the
following to support the 15 Express Lanes:
• A $1 6.5 million ramp -up reserve prior to substantial completion and commencement of express
lanes operations;
• An $1 8 million TIFIA loan reserve from an advance of Commission Measure A sales tax revenue
up to $3 million per year from 2019 through 2024 to the extent that 15 Express lanes revenues are
not sufficient to fund the TIFIA loan reserve; and
• Up to a $38.5 million backstop loan from Commission Measure A sales tax revenues of up to $3.85
million per year to the extent 15 Express Lanes revenues are not sufficient to cover operations and
maintenance costs, TIFIA loan mandatory debt service, and TIFIA scheduled interest.
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15 Express Lanes Fund
Notes to Financial Statements
June 30, 2023
Note 8. Commitments and Contingencies
Cooperative agreements: In January 2017 the Commission entered into a toll operator agreement,
for the operations of the 15 Express Lanes. The toll operator is responsible for day-to-day operations
of the toll collection system. The toll operator agreement expires in April 2026. In December 2022, the
five-year extension options were exercised and the agreement will expire April 2031. The toll operator
agreement provides operating services to the Commission in the annual amount of $7,755,600 for the
first two years of operations. Thereafter, annual amounts will be based on variable pricing.
Purchase commitments: The Fund has entered into other agreements in the ordinary course of
business with companies and other governmental agencies related to operations and maintenance.
These agreements, which are significant, are funded with available and future revenues.
Note 9. Pensions and Other Post -Employment Benefits Other Than Pensions
The Fund participates in the Commission's cost -sharing multiple employer defined benefit pension
plan administered by the California Public Employees' Retirement System and the Commission's OPEB.
Employees of the Fund are employees of the Commission as a whole. The required note disclosures
regarding pension plans and OPEB are included in the Commission's financial statements. Please see
those financial statements for information about the pension plans and OPEB as a whole.
The net pension liability of $73,776 and net OPEB asset of $27,823, reported by the Fund, represent the
Fund's proportional share of the Commission's net pension liabilities of $1,868,313 and net OPEB asset
of $704,600. The Fund's net pension liabilities and OPEB assets each represent 3.9% of the Commission's
net pension liabilities and OPEB assets. For the year ended June 30, 2023, the Fund's contributions
recognized as part of pension and OPEB expenses were $340,452 and ($10,146), respectively.
Note 10. Pronouncements Issued, Not Yet Effective
The GASB pronouncements issued prior to June 30, 2023 that have an effective date that may impact
future financial presentations include:
• GASB Statement No. 99, Omnibus 2022 (The requirements related to financial guarantees and
the classification and reporting derivative instruments within the scope of Statement 53 are
effective for fiscal years beginning after June 15, 2023, and all reporting periods thereafter).
• GASB Statement No. 100, Accounting Changes and Error Corrections, effective for fiscal years
beginning after June 15, 2023; and
• GASB Statement No. 101, Compensated Absences, effective for fiscal year beginning after
December 15, 2023.
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RIVERSIDE
COUNTY
TRANSPORTATION
COMMISSION
Riverside County
Transportation Commission
(951) 787-7141 • www.rctc.org
4080 Lemon Street, 3rd Floor
P.O. Box 12008 • Riverside, CA
92502-2208
346
15/91 Expr Bslanes COnnec-tZ17
-INSPONDER
RIVERSIDE
COUNTY
TRANSPORTATION
COMMISSION
348
15 Express Lanes Fund
(Enterprise Fund of the Riverside County Transportation Commission)
Financial Statements
For the Year Ended June 30, 2023
CONTENTS
Independent Auditor's Report
Management's Discussion and Analysis
Financial Statements
1
5
Statement of Net Position 13
Statement of Revenues, Expenses and Changes in Fund Net Position 14
Statement of Cash Flows 15
Notes to Financial Statements 17
349
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COUNTY
TRANSPORTATION
COMMISSION
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RIVERSIDE
COUNTY
TRANSPORTATION
COMMISSION
352
EideBailly.
CPAs & BUSINESS ADVISORS
Independent Auditor's Report
Board of Commissioners
Riverside County Transportation Commission
Riverside, California
Report on the Audit of the Financial Statements
Opinion
We have audited the financial statements of the 15 Express Lanes Fund (the Fund), an enterprise fund of
the Riverside County Transportation Commission (the Commission) as of and for the year ended June 30,
2023, and the related notes to the financial statements as listed in the table of contents.
In our opinion, the accompanying financial statements referred to above present fairly, in all material
respects, the financial position of the 15 Express Lanes Fund of the Commission, as of June 30, 2023, and
the changes in financial position and cash flows thereof for the year then ended in accordance with
accounting principles generally accepted in the United States of America.
Basis for Opinion
We conducted our audit in accordance with auditing standards generally accepted in the United States
of America (GAAS). Our responsibilities under those standards are further described in the Auditor's
Responsibilities for the Audit of the Financial Statements section of our report. We are required to be
independent of Commission and to meet our other ethical responsibilities, in accordance with the
relevant ethical requirements relating to our audit. We believe that the audit evidence we have
obtained is sufficient and appropriate to provide a basis for our audit opinion.
Emphasis of Matter
As discussed in Note 1, the financial statements present only the 15 Express Lanes Fund and do not
purport to, and do not, present fairly the financial position of the Commission as of June 30, 2023, the
changes in its financial position, or, where applicable, its cash flows for the year then ended in
accordance with accounting principles generally accepted in the United States of America. Our opinion is
not modified with respect to this matter.
What inspires you, inspires us. eidebailly.com
10681 Foothill Blvd., Ste. 300 Rancho Cucamonga, CASSS30-3831 T 909.466.4410 F 909.466.4431 EOE
-1-
Responsibilities of Management for the Financial Statements
Management is responsible for the preparation and fair presentation of the financial statements in
accordance with accounting principles generally accepted in the United States of America; and for the
design, implementation, and maintenance of internal control relevant to the preparation and fair
presentation of financial statements that are free from material misstatement, whether due to fraud or
error.
Auditor's Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole
are free from material misstatement, whether due to fraud or error, and to issue an auditor's report
that includes our opinion. Reasonable assurance is a high level of assurance but is not absolute
assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS will always
detect a material misstatement when it exists. The risk of not detecting a material misstatement
resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery,
intentional omissions, misrepresentations, or the override of internal control. Misstatements are
considered material if there is a substantial likelihood that, individually or in the aggregate, they would
influence the judgment made by a reasonable user based on the financial statements.
In performing an audit in accordance with GAAS, we:
• Exercise professional judgment and maintain professional skepticism throughout the audit.
• Identify and assess the risks of material misstatement of the financial statements, whether due
to fraud or error, and design and perform audit procedures responsive to those risks. Such
procedures include examining, on a test basis, evidence regarding the amounts and disclosures
in the financial statements.
• Obtain an understanding of internal control relevant to the audit in order to design audit
procedures that are appropriate in the circumstances, but not for the purpose of expressing an
opinion on the effectiveness of the Commission's internal control. Accordingly, no such opinion
is expressed.
• Evaluate the appropriateness of accounting policies used and the reasonableness of significant
accounting estimates made by management, as well as evaluate the overall presentation of the
financial statements.
We are required to communicate with those charged with governance regarding, among other matters,
the planned scope and timing of the audit, significant audit findings, and certain internal control —related
matters that we identified during the audit.
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the management's
discussion and analysis, as listed in the table of contents, be presented to supplement the basic financial
statements. Such information is the responsibility of management and, although not a part of the basic
financial statements, is required by the Governmental Accounting Standards Board who considers it to
be an essential part of financial reporting for placing the basic financial statements in an appropriate
operational, economic, or historical context. We have applied certain limited procedures to the required
supplementary information in accordance with GAAS, which consisted of inquiries of management
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354
about the methods of preparing the information and comparing the information for consistency with
management's responses to our inquiries, the basic financial statements, and other knowledge we
obtained during our audit of the basic financial statements. We do not express an opinion or provide
any assurance on the information because the limited procedures do not provide us with sufficient
evidence to express an opinion or provide any assurance.
Rancho Cucamonga, California
October 31, 2023
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COUNTY
TRANSPORTATION
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EXPRESS
LANES
RIVERSIDE
COUNTY
TRANSPORTATION
COMMISSION
MANAGEMENT'S
DISCUSSION & ANALYSIS
5
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TRANSPORTATION
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358
15 Express Lanes Fund
Management's Discussion and Analysis
For the Year Ended June 30, 2023
As management of the 15 Express Lanes Fund (the Fund), an enterprise fund of the Riverside County
Transportation Commission, we offer readers of the Fund financial statements this narrative overview
and analysis of the Fund's financial activities for the fiscal year ended June 30, 2023. We encourage
readers to consider information on financial performance presented in conjunction with the financial
statements that begin on page 11.
Financial Highlights
• At the end of fiscal year (FY) 2022/23, the total net position of the Fund was $262,717,804,
consisting of net investment in capital assets of $204,516,847, restricted net position for other
post -employment benefits of $87,940, and restricted net position of $58,113,017. The net
position increased $13,075,727 due to operating revenues outpacing operating expenditures
and transfers.
• Net position of $262,717,804 during FY 2022/23 reflects the position after the second full year of
toll operations. The 15 -mile stretch that includes two express lanes in each direction of the center
median along the Interstate (I) 15 corridor between Cajalco Road in Corona and State Route (SR)
60 in Jurupa Valley achieved final acceptance in FY 2022/23.
• In FY 2022/23, total operating revenues of $39,371,149 and include toll, violation penalty,
account fee, and miscellaneous revenues. Total operating expenses of $24,274,329 include but
not limited to: roadway and toll systems maintenance, customer service, back -office operations,
other support costs, and depreciation and amortization.
Overview of the Financial Statements
This discussion and analysis is intended to serve as an introduction to the Fund's financial statements.
The financial statements are comprised of the Fund financial statements and notes to the financial
statements.
The statement of net position presents information on all of the Fund's assets, liabilities, and deferred
outflows/inflows of resources, with the difference reported as net position. Over time, increases or
decreases in net position may serve as a useful indicator of whether the financial position of the Fund is
improving or deteriorating.
The statement of revenues, expenses and changes in fund net position presents information showing
how the Fund's net position changed during the fiscal year. All changes in net position are reported as
soon as the underlying event giving rise to the change occurs, regardless of the timing of related cash
flows. Thus, revenues and expenses are reported for some items that will only result in cash flows in
future fiscal periods.
The statement of cash flows presents information on the cash flows related to operating, noncapital
financing, capital and related financing, and investing activities.
The Fund financial statements can be found on pages 11-16 of this report.
Notes to the financial statements provide additional information that is essential to a full understanding
of the data provided in the financial statements. The notes to the financial statements can be found on
pages 17-27 of this report.
15 Express Lanes Financial Analysis
As noted previously, net position may serve over time as a useful indicator of the Fund's financial position.
At June 30, 2023, the Fund's net position was $262,717,804. Our analysis below focuses on net position
and changes in net position of the Fund's financial activities.
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359
15 Express Lanes Fund
Management's Discussion and Analysis
For the Year Ended June 30, 2023
15 Express Lanes Fund
Net Position
2023 2022
Current and other assets
Restricted assets
Capital assets, net
Total assets
Deterred outtlows of resources
Total assets and deferred outflows of resources
Current liabilities
Long-term liabilities
Total liabilities
Deferred inflows of resources
Total liabilities and deferred inflows of resources
7,935,644
79,347,151
356,731,106
444,013,901
11,458,973
46,950,436
368,116,699
426,526,108
443,606 477,196
444,457,507 427,003,304
4,908,401
176,126,926
5,044,271
171,412,545
181,035,327 176,456,816
704,376 904,411
181,739,703 177,361,227
Net position
Net investment in capital assets 204,516,847 215,902,440
Restricted 58,200,957 33,739,637
Total net position $ 262,717,804 $ 249,642,077
FY 2022/23 represents the second full year of toll operations for the Fund. Total assets and deferred
outflows of resources increased $17,454,203, or 4%, largely due to continued strong operating
performance, increasing restricted assets which includes the facilities cash investments related to toll
operations. Total liabilities and deferred inflows of resources increased $4,378,476, or 2%, primarily due
to increases in toll supported long-term debt related to accreted and compounded interest.
The Fund's net investment in capital assets was $204,516,847 in FY 2022/23. The Fund's net position
reflects its investment in capital assets (i.e., land and land improvements; buildings; toll infrastructure;
equipment, furniture and fixtures; and toll facility franchise), less any related outstanding debt used to
acquire these assets. The Fund uses these capital assets, which include intangible assets, to provide
improved mobility for the Fund customers and commuters along the 1-15 corridor.
Restricted net position, representing resources subject to external restrictions on how they may be used,
was $58,200,957 and represents 22% of the total net position at June 30, 2023.
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360
15 Express Lanes Fund
Management's Discussion and Analysis
For the Year Ended June 30, 2023
The analysis below focuses on the changes in net position.
15 Express Lanes Fund
Changes in Net Position
2023 2022
Operating revenues
Toll, penalties, and tees
Total operating revenues
Operating expenses
Management and operational services
Administrative overhead
Other operating expenses
Processional services
General and administrative
Depreciation and amortization
Total operating expenses
Operating income
$
39,371,149 $ 37,259,442
39,371,149
37,259,442
9,729,858 10,514,267
337,800 305,200
191,108 173,980
466,264 499,955
896,386 (19,871)
12,652,913 10,899,738
24,274,329 22,373,269
15,096,820 14,886,173
Nonoperating revenues(expenses)
Investment income(loss) 1,594,076 (430,015)
Interest expense (5,055,596) (4,859,834)
Total nonoperating revenues (expenses) (3,461,520) (5,289,849)
Income before contributions and transfers
11,635,300 9,596,324
Contributions trom Commission govern mental to nds 1,263,354 13,138,929
Transfers from Commission governmental funds 177,116 35,380
Transfers to enterprise funds (43)
Transfers to Commission governmental funds - (4,325,708)
Total contributions and transfers 1,440,427 8,848,601
Change in net position
Total net position at beginning otyear
Total net position at end of year $ 262,717,804 $ 249,642,077
13,075,727 18,444,925
249,642,077 231,197,152
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361
15 Express Lanes Fund
Management's Discussion and Analysis
For the Year Ended June 30, 2023
The Fund's operating revenues increased $2,111,707, or 6%, due to increased traffic volumes in FY
2022/23. Total operating expenses increased $1,901,060, or 8% due to net pension benefits expenses
compared to net pension benefits credit in FY2021/22. Additionally, depreciation and amortization
increased due to depreciation on capital assets. Nonoperating incomes and expenses, net increase of
$1,828,329, or 35%, is due to positive investment income, offset by toll supported long-term debt related
to accreted and compounded interest. Net contributions and transfers from the Commission decreased
by $7,408,174, or 84%, as a result of the prior year's contribution of capital and intangible assets, offset
by the transfer of toll -supported long-term debt related to the 1-15 Express Lanes project. Total traffic
volume on the 15 Express Lanes Fund during FY 2022/23 was approximately 25,577,400 transactions.
Capital Assets
As of June 30, 2023, the Fund had $356,731,106, net of accumulated depreciation and amortization,
invested in a broad range of capital assets including: land and land improvements; buildings; toll
infrastructure comprised of communication equipment and computer hardware and software;
equipment, furniture, and fixtures; and toll facility franchise.
15 Express Lanes Fund
Capital Assets, Net of Depreciation
2023 2022
Land and land improvements
Toll infrastructure
Toll facility franchise
Buildings
Equipment, furniture, and fixtures
Total capital assets, net
611,755 $
12,715,942
338,569,119
4,789,768
44,522
611,755
18,415,058
343,502,929
5,512,593
74,364
$ 356,731,106 $ 368,116,699
More detailed information about the Fund's capital assets is presented in note 5 to the financial
statements.
Debt Administration
As of June 30, 2023, the Fund had $167,030,355 outstanding in a Transportation Innovation Finance and
Infrastructure Act (TIFIA) loan and $9,000,000 outstanding from an advance from Commission Measure
A revenues.
15 Express Lanes Fund
Outstanding Debt
2023 2022
TIFIA loan
Advance from Commission fund
Total outstanding debt
167,030,355 $ 162,385,853
9,000,000 9,000,000
$ 176,030,355 $ 171,385,853
Additional information on long-term debt can be found in note 7 to the financial statements.
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362
15 Express Lanes Fund
Management's Discussion and Analysis
For the Year Ended June 30, 2023
Economic and Other Factors
The Fund makes up $34,024,500 or 4% of Commission's FY 2023/24 revenue budget. In FY 2023/24,
toll and non -toll revenues are forecasted to increase by less than 1% over the FY 2022/23 budget. This
increase is due to higher than anticipated revenues received during FY 2022/23 largely as a result of
tolls collected within the southern terminus of the Enterprise. The average projected long-term rate of
growth for toll road revenues beyond FY 2023/24 is 2.3%.
The majority of expenses related to the Fund within FY 2023/24 budget are on -going general costs
related to day-to-day operations of the toll facility. As a fully electronic toll facility, motorists pay tolls
through the convenient use of FasTrak® transponders that automatically deduct toll charges from a
prepaid account.
1-15 Corridor Freight and Express Lanes Project: The Commission and San Bernardino County
Transportation Agency (SBCTA) entered into a Cooperative Agreement (Agreement) on May 24,
2023, formalizing the coordination of the toll facilities between Riverside and San Bernadino counties;
collectively referred to as the 1-15 Corridor Freight and Express Lanes project or 1-15 Next. Specifically,
the Agreement requires the Commission to assign approximately 2.2 miles of its existing RCTC 15 Toll
Lanes to SBCTA in exchange for annual toll revenue payments payable by SBCTA.
The assignment is made by the Commission to SBCTA in preparation for planning and constructing a toll
facility within the median of 1-15. Construction by SBCTA is anticipated to begin during calendar year
2024 with an estimated completion date of summer 2026.
As of June 30, 2023, no impacts have been incurred by the existing RCTC 15 Express Lanes as a result of
entering into this Agreement. However, SBCTA will reimburse RCTC 15 Express Lanes for any impacts
during construction phase of the project. Furthermore, assignment of the RCTC 15 Express Lanes will
not occur until sixty (60) days prior to project completion estimated to occur during calendar year 2026.
Contacting 15 Express Lane's Management
This financial report is designed to provide a general overview of the Fund's finances for all those with
an interest in the government's finances and to demonstrate the Fund's accountability for the money it
receives. Questions concerning any of the information provide in this report or requests for additional
information should be addressed to the Chief Financial Officer, Finance Department at the Riverside
County Transportation Commission, 4080 Lemon Street, 3rd Floor, P.O. Box 12008, Riverside, CA 92502-
2208.
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TRANSPORTATION
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15 Express Lanes in Norco
RIVERSIDE
COUNTY
TRANSPORTATION
COMMISSION
FINANCIAL
STATEMENTS
•
RIVERSIDE
COUNTY
TRANSPORTATION
COMMISSION
366
15 Express Lanes Fund
(Enterprise Fund of the Riverside County Transportation Commission)
Statement of Net Position
June 30, 2023
Assets
Current assets:
Cash and investments $ 3,998,481
Receivables
Accounts 3,079,871
Interest 104,147
Lease 91,895
Prepaid expenses 142,971
Total current assets 7,417,365
Noncurrent assets:
Restricted cash and investments 79,347,151
Lease receivable 490,456
Net other post -employment benefits assets 27,823
Capital assets, net
Nondepreciable 611,755
Depreciable and amortizable 356,119,351
Total noncurrent assets 436,596,536
Total assets 444,013,901
Deferred outflows of resources
Pension benetits
Other post -employment benefits
362,612
80,994
Total assets and deferred outflows of resou rces 444,457,507
Liabilities
Current liabilities:
Accounts payable 2,366,145
Interest payable 1,697,411
Due to other Commission funds 110,655
Other liabilities 698,738
Compensated absences liability 35,452
Total current liabilities 4,908,401
Noncurrent liabilities:
Net pension liabilities 73,776
Compensated absences liabilities 22,795
Advance from other Commission funds 9,000,000
Bonds payable - due in more than one year 167,030,355
Total noncurrent liabilities 176,126,926
Total liabilities 181,035,327
Deferred inflows of resources
Pension benefits 119,875
Other post -employment benefits 20,877
Lease revenues 563,624
Total liabilities and deferred inflows of resources 181,739,703
Net position
Net investment in capital assets 204,516,847
Restricted tor other post -employment benefits 87,940
Restricted for express lanes 58,113,017
Total net position $ 262,717,804
See notes to financial statements
367
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15 Express Lanes Fund
(Enterprise Fund of the Riverside County Transportation Commission)
Statement of Revenues, Expenses and Change in Fund Net Position
For the Year Ended June 30, 2023
Operating revenues
Tolls, penalties, and fees
$ 39,371,149
Operating expenses
Management and operational services 9,729,858
Administrative overhead 337,800
Other operating expenses 191,108
Professional services 466,264
General and administrative expenses 896,386
Depreciation and amortization 12,652,913
Total operating expenses
Operating income
Nonoperating revenues(expenses)
Investment income (loss)
Interest expense
24,274,329
15,096,820
1,594,076
(5,055,596)
Total nonoperating revenues(expenses) (3,461,520)
Income before contributions and transfers 11,635,300
Contributions and transfers
Contributions from Commission governmental activities 1,263,354
Transfers in from Commission governmental activities 177,116
Transfers out to other Enterprise fund (43)
Total contributions and transfers 1,440,427
Change in net position 13,075,727
Net position at beginning otyear 249,642,077
Net position at end of year
See notes to financial statements
$ 262,717,804
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368
15 Express Lanes Fund
(Enterprise Fund of the Riverside County Transportation Commission)
Statement of Cash Flows
For the Year Ended June 30, 2023
Cash flows from operating activities
Receipts from customers and users $ 35,225,381
Payments to vendors (3,994,037)
Payments to employees (556,301)
Payments for RCTC interfund services used (331,600)
Reimbursements received for lease costs 50,040
Net cash provided by operating activities 30,393,483
Cash flows from noncapital financing activities
Transfers from governmental activities for operations and maintenance
Net cash used for non capital financing activities
Cash flows from capital and related financing activities
Payment for acquisition of capital assets
Net cash used for capital and related financing activities
Cash flows from investing activities
Interest received
Net cash used for investing activities
335,158
335,158
(3,966)
(3,966)
1,385,014
1,385,014
Net increase in cash and cash equivalents 32,109,689
Cash and cash equivalents at beginning of year 51,315,666
Cash and cash equivalents at end of year
Reconciliation otcash and cash equivalents to statement ot net position
Cash and investments
Add: fair value adjustment
Restricted cash and investments
Total cash and cash equivalents
See notes to financial statements
$ 83,425,355
3,998,481
79,723
4,078,204
79,347,151
$ 83,425,355
369
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15 Express Lanes Fund
(Enterprise Fund of the Riverside County Transportation Commission)
Statement of Cash Flows, Continued
For the Year Ended June 30, 2023
Reconciliation of operating income (loss) to net cash
provided by (used for) operating activities
Operating income
Adjustments to reconcile operating income to net cash
provided by (used for) operating activities
Depreciation and amortization expense
Change in assets and liabilities
(Increase) Decrease in other receivables, net
(Increase) Decrease in prepaid assets
Increase (Decrease) in pension and post -employment benefit liabilities, net of deferred items
Increase (Decrease) in lease receivable, net of deferred items
Increase (Decrease) in accounts payable
Increase (Decrease) in due to other Commission funds
Increase (Decrease) in compensated absences liability
Increase (Decrease) in other liabilities
Total adjustments
Net cash provided by operating activities
$ 15,096,820
12,652,913
2,823,119
50,400
330,306
(9,216)
(885,541)
9,221
6,758
318,703
15,296,663
$ 30,393,483
Noncash capital, financing and investing activities
Accreted and compounded interest on TIFIA Loan $ 4,644,502
Compounded interest on advance from other Commission fund 400,253
Net increase (decrease) in the fair value of investments (79,723)
Contributions of capital and intangible assets from Commission governmental activities 1,263,354
Transfers in of accrued investment income from Commission governmental activities 177,116
See notes to financial statements
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15 Express Lanes Fund
Notes to Financial Statements
June 30, 2023
Note 1. Reporting Entity
After more than a decade of work, which includes approximatelythree years of construction,the Riverside
County Transportation Commission (Commission) achieved substantial completion on the 1-15 Express
Lanes Project on April 10, 2021. In achieving substantial completion, the 15 Express Lanes opened to
traffic; tolling commenced on April 14, 2021. The 15 -mile stretch includes two lanes in each direction of
the center median along the Interstate (I) 15 corridor between Cajalco Road in Corona and State Route
(SR) 60 in Jurupa Valley.
The 15 Express Lanes Fund (Fund) is reported as a major enterprise fund in the Commission's basic
financial statements. The accompanying financial statements present the net position, changes in net
position, and cash flows of the Fund only. They do not purport to, and do not, present the overall
financial position of the Commission or its changes in net position as of June 30, 2023.
Note 2. Summary of Significant Accounting Policies
The accounting policies of the Fund are in conformity with generally accepted accounting principles
applicable to governmental units. The Governmental Accounting Standards Board (GASB) is the
accepted standard -setting body for establishing accounting and financial reporting principles.
Basis of Accounting: The financial statements of the Fund are reported using the economic resources
measurement focus and the accrual basis of accounting. Revenues consisting substantially of tolls and
fees, are recorded when earned, and expenses are recorded when a liability is incurred, regardless
of the timing of related cash flows. Toll revenue is recognized when the customers utilize the toll road
facility and payment is collected.
Enterprise funds distinguish operating revenues and expenses from nonoperating items. Operating
revenues and expenses generally result from providing services in connection with an enterprise fund's
principal and ongoing operations.The principal operating revenues of the Fund are charges to customers
for use of the toll facility. Operating expenses for the Fund include the cost of services, administrative
expenses, and depreciation and amortization on capital and intangible assets. All revenues and expenses
not meeting this definition are reported as nonoperating revenues and expenses.
Violations: Violations consist of uncollected violation tolls and penalties. Unpaid violations of
$29,275,372 as of June 30, 2023 are not recognized as revenue until payment is received. If violations
and penalties remain owed for more than 90 days, they are attached to the registration for the violation
vehicle. Unpaid violations will remain recorded for a period of four years in accordance with the statute
of limitations, at which time, they will be deemed uncollectible.
Cash and investments: The Commission maintains cash and investments in accordance with the
Investment Policy adopted by the Board of Commissioners in December 2022. The Investment Policy
complies with the California Government Code (Code). Investments of bond proceeds as permitted by
the applicable debt documents are maintained with U.S. Bank as trustee. Separate investment accounts
are maintained for the proceeds of bond issues, with the earnings for each bond issue accounted for
separately. The Fund participates in the Riverside County Pooled Investment Fund (RCPIF). Cash from
other Commission revenue sources is commingled for investment purposes in the RCPIF, with investment
earnings allocated to the different accounts based on average daily account balances.
The Commission holds investments that are measured at fair value on a recurring basis. Investments in
U.S. Treasury obligations, U.S. agency securities, and mortgage and asset -backed securities are carried
at fair value based on quoted market prices, except for money market investments, which are carried
at amortized cost which approximates fair value. The RCPIF is carried at fair value based on the value of
each participating dollar as provided by RCPIF.
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371
15 Express Lanes Fund
Notes to Financial Statements
June 30, 2023
Note 2. Summary of Significant Accounting Policies, Continued
Cash and cash equivalents: For the purpose of the statement of cash flows, the Commission considers
all short-term investments with an initial maturity of three months or less to be cash equivalents. All
deposits, commercial paper notes, money market funds, negotiable certificates of deposit, and the
Fund's share of the RCPIF represent cash and cash equivalents for cash flow purposes.
Restricted cash and investments: Investments set aside in the Senior Lien Obligations Reserve Fund,
Second Lien Obligations Reserve Fund, Subordinate Lien Obligations Reserve Fund, and Residual Fund
Scheduled Retained Balance Fund are pursuant to the terms of the 2017 Indenture and their use is
limited by applicable debt terms and conditions.
Permitted investments per the debt indentures include government obligations, State of California
and local agency obligations, banker's acceptances, commercial paper notes, negotiable certificates
of deposit, repurchase agreements, money market funds, other mutual funds, investment agreements,
RCPIF, and variable and floating rate securities.
Receivables: Accounts receivables include amounts due from other California toll road agencies related
to their customers' use of the 15 Express Lanes.
Capital assets: Capital assets include land and land improvements; toll infrastructure; buildings;
equipment, furniture and fixtures; and toll facility franchise. Capital assets are defined by the Fund as
assets with an initial, individual cost of more than $100,000 and a useful life in excess of three years. Such
assets are recorded at historical cost. The costs of normal maintenance and repairs that do not add value
to the asset or materially extend asset lives are not capitalized.
Capital assets are depreciated using the straight-line method over the following estimated useful lives:
Asset Type Useful Life
Buildings 10 years
Equipment, furniture and fixtures 3 to 5 years
Toll facility franchise 50 years
Toll infrastructure 5 to 10 years
The Commission entered into a toll facility agreement with California's Department of Transportation
(Caltrans) and obtained authority to toll the 1-15 corridor between Cajalco Road and SR -60 for 50 years
commencing as of the first day on which the 15 Express Lanes open for public use and toll operations
through April 2071. The 15 Express Lanes opened on April 10, 2021.
Deferred outflows of resources: In addition to assets, the statement of net position reports a separate
section for deferred outflows of resources. This separate financial statement element represents a
consumption of net position that applies to a future period and so will not be recognized as an outflow
of resources (expense) until then. As of June 30, 2023, the Fund has deferred outflows of resources
related to pension and other post -employment benefits (OPEB).
Due to other Commission funds: During the course of operations, transactions occur between
Commission governmental funds involving goods provided and services rendered.
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372
15 Express Lanes Fund
Notes to Financial Statements
June 30, 2023
Note 2. Summary of Significant Accounting Policies, Continued
Compensated absences: Vacation hours accumulated and not taken at year-end is reported as a long-
term liability, net of current portion, in the Fund.
Sick leave is recorded as an expense when taken by the employee. Employees with continuous five years
of service have the option of being paid for sick leave accumulated in excess of 240 hours at a rate of
50% (i.e., one hour's pay for every two hours in excess of 240). Any sick leave in excess of 240 hours is
accrued at fiscal year-end, and a liability is reported in the Fund.
Pensions: For purposes of measuring the net pension liability and deferred outflows/inflows of
resources related to pensions and pension expense, information about the fiduciary net position of the
Commission's California Public Employees' Retirement System (CaIPERS) plans (Plans) and additions
to/deduction from Plans' fiduciary net position have been determined on the same basis as they are
reported by CaIPERS. For this purpose, benefit payments (including refunds of employee contributions)
are recognized when due and payable in accordance with benefit terms. Investments are reported at fair
value.
Post -employment benefits other than pensions: For purposes of measuring the net OPEB asset,
deferred outflows/inflows of resources related to the OPEB asset and OPEB expense, information
about the fiduciary net position of the Commission's OPEB plan, and additions to/deductions from the
OPEB fiduciary net position have been determined on the same basis as they are reported by California
Employers' Retiree Benefit Trust administered by CaIPERS. For this purpose, benefit payments are
recognized when due and payable in accordance with benefit terms. Investments are reported at fair
value, except for money markets and participating interest -earning investment contracts that have a
maturity at the time of purchase of one year or less, which is reported at cost.
Deferred inflows of resources: In addition to liabilities, the statement of net position reports a separate
section for deferred inflows of resources. This separate financial statement element represents an
acquisition of net position that applies to a future period and will not be recognized as an inflow of
resources, or revenue, until then. The Fund has deferred inflows of resources related to pension, OPEB,
and leases.
Risk management: The Fund purchases commercial property insurance including business interruption,
earthquake, and flood coverage related to the toll facility.
Net position: Net position represents the difference between assets plus deferred outflow of resources
and liabilities plus deferred inflow of resources and is classified into two categories:
• Net investment in capital assets consists of capital and intangible assets, net of accumulated
depreciation, reduced by the outstanding balances of any borrowings used for the acquisition,
construction, or improvement of those assets and excludes unspent debt proceeds.
• Restricted net position represents restricted assets less liabilities related to those assets.
Restricted assets are recorded when there are limitations imposed by creditors (such as through
debt covenants). The statement of net position includes restricted net position for the portion of
net toll revenues restricted by the 2017 Master Indenture for toll operations.
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373
15 Express Lanes Fund
Notes to Financial Statements
June 30, 2023
Note 2. Summary of Significant Accounting Policies, Continued
Use of estimates: The preparation of the financial statements in conformity with accounting principles
generally accepted in the United States requires management to make estimates and assumption that
affect certain reported amounts and disclosures during the reporting period. As such, actual results
could differ from those estimates.
Note 3. Cash and Investments
Cash and investments are comprised of the following at June 30, 2023:
Cash in bank
Investments
With RCPIF
With Trustee
Total investments
Total cash and investments
Total cash and investments are reported in the financial statements as:
Unrestricted cash and investments
Restricted cash and investments
Total cash and investments
$ 1,034,781
3,813,010
78,497,841
82,310,851
$ 83,345,632
$ 3,998,481
79,347,151
$ 83,345,632
Fair Value Hierarchy: The Commission categorizes its fair value measurements within the fair value
hierarchy established by generally accepted accounting principles. The hierarchy is based on the
valuation inputs used to measure fair value of the assets. Level 1 inputs are quoted prices in an active
market for identical assets; Level 2 inputs are based on similar observable assets either directly or
indirectly, which may include inputs in markets that are not considered to be active; and Level 3 inputs
are significant unobservable inputs (the Commission does not value any of its investments using Level
3 inputs).
r
EXPRESS LANES
County
TO® Line
TRANSPONDER REQUIRED
-20-
374
15 Express Lanes Fund
Notes to Financial Statements
June 30, 2023
Note 3. Cash and Investments, Continued
The following is a summary of the fair value hierarchy of the fair value of investments of the Fund as of
June 30, 2023:
Investments by fair value level:
June 30, 2023
Fair Value Measurements Using
Quoted Prices in Active
Markets for Identical
Assets (Level 1)
Significant Other Observable
Inputs (Level 2)
Investments subject to fair value hierarchy:
Mortgage and asset -backed securities
U.S.Treasury obligations
Money market mutual funds
U.S. agency securities
Total investments measured at fair value
Investments not subject to fair value hierarchy:
RCPIF
Total investments
$ 3,771,821 $
8,416,501
63,080,795
3,228,724
8,416,501
63,080,795
$ 3,771,821
3,228,724
78,497,841 $ 71,497,296 $ 7,000,545
3,813,010
$ 82,310,851
Investments classified in Level 1 of the value hierarchy, valued at $71,497,296 are valued using quoted
prices in active markets.
Mortgage and asset -backed securitiestotaling $3,771,821 and U.S. agency securitiestotaling $3,228,724
classified in Level 2 of the fair value hierarchy, are valued using matrix pricing techniques maintained by
various pricing vendors. Matrix pricing is used to value securities based on the securities' relationship
to benchmark quoted prices. Fair value is defined as the quoted market value on the last trading day of
the period. These prices are obtained from various pricing sources by the custodian bank.
As of June 30, 2023, the Fund has the following investments:
Weighted Average
Investments Fair Value Principal Interest Rate Range Maturity Range Maturity (Years)
RCPIF
Held byTrustee
Money market mutual funds
Mortgage and asset -backed
securities
U.S. agency securities
U.S.Treasury obligations
Total Investments
$3,813,010 $3,892,733 0.210%-6.000% 6/30/23 - 6/30/28 1.300
63,080,795
3,771,821
3,228,724
8 416 501
63,080,795
4,023,553
3,258,322
8,539,532
$82,310,851 $82,794,935
4.706% N/A 20 days or 0.055
1.080%-4.077% 1/25/24 -12/15/42 5.907
0.305%-5.508% 10/27/23 - 3/25/27 1.405
0.127%-4.063% 10/15/23 - 2/28/26 1.520
Portfolio weighted average 10.187
The weighted average maturity is calculated using the investment's effective duration weighted by the
investment's fair value.
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375
15 Express Lanes Fund
Notes to Financial Statements
June 30, 2023
Note 3. Cash and Investments, Continued
The weighted average maturity is calculated using the investment's effective duration weighted by the
investment's fair value.
As of June 30, 2023, mortgage and asset -backed securities fair value totaled $3,771,821.The underlying
assets are consumer receivables that include credit cards, auto/equipment, and home loans. The
securities have a fixed interest rate and are rated Aaa/AAA by least two of the three nationally recognized
statistical rating organizations.
Deposits and withdrawals in the RCPIF are made on the basis of $1.00 (cost basis) and not fair value.
Accordingly, the Fund's investment at June 30, 2023 is uncategorized, not defined as Level 1, Level 2, or
Level 3 input.
Interest rate risk: While the Commission does not have a formal policy related to the interest rate risk
of investments, the Commission's investment policy follows the Code as it relates to limits on investment
maturities as a means of managing exposure to fair value losses arising from increasing interest rates. In
accordance with the Commission's investment policy, restricted investments are invested in accordance
with the maturity provisions of the specific bond indenture, which may extend beyond five years.
Custodial credit risk: Custodial credit risk for deposits is the risk that, in the event of the failure of a
depository financial institution, a government will not be able to recover its deposits or will not be able
to recover collateral securities that are in the possession of an outside party. The custodial credit risk
for investments is the risk that, in the event of the failure of the counterparty (e.g., broker -dealer) to a
transaction, a government will not be able to recover the value of its investment or collateral securities
that are in the possession of another party. The Commission's investment policy requires that a third -
party bank trust department hold all securities owned by the Commission. All trades are settled on a
delivery versus payment basis through the Commission's safekeeping agent.
The Fund's cash deposits are included in the overall Commission's deposits. Bank balances over
$5,000,000 are swept daily into a money market account. Of the bank balance, up to $250,000 is
federally insured under the Federal Depository Insurance Corporation with balances in excess of
$250,000 collateralized in accordance with the Code; however, the collateralized securities are not held
in the name of the Commission.
Credit risk: The Commission's investment policy as well as the specific bond indentures set minimum
acceptable credit ratings for investments from any of the three nationally recognized statistical rating
organizations. The following table is a summary of the credit quality distribution and concentration of
credit risk by investment type as a percentage of each category's fair value at June 30, 2023; securities
denoted as NR are not rated by one of the nationally recognized statistical rating organizations.
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376
15 Express Lanes Fund
Notes to Financial Statements
June 30, 2023
Note 3. Cash and Investments, Continued
Investments
oody.M5 % of Portfolio
RCPIF
Money market mutual funds
Funds
Mortgage and asset backed securities
Securities
Securities
U.S. agency securities
Notes
Notes
U.S. Treasuries
Treasury
Treasury
Total
Aaa-bf
NR
AM AAA
NR AA+
NR MA
AAA AA+
AAA NR
AAA NR
NR AA+
4.59%
76.88%
4.30%
0.23%
3.29%
0.59%
8.95%
1.17%
100.00%
Concentration of credit risk: The Commission's investment policy places a limit of 10% on the amount
of investment holdings with any one non-U.S. Government or non-federal agency issuer. As of June 30,
2023, the Commission did not have investments in any one issuer that represents more than 5% of the
Commission's total investments.
Note 4. Lease Receivable
For the year ended June 30, 2023, the financial statements include the adoption of GASB Statement
No. 87, Leases. The primary objective of this statement is to enhance the relevance and consistency
of information about the Commission's leasing activities. This statement establishes a single model for
lease accounting based on the principle that leases are financings of the right to use an underlying asset.
Under this statement, a lessee is required to recognize a lease liability and an intangible right to use
lease asset, and a lessor is required to recognize a lease receivable and a deferred inflow of resources.
The 15 Express Lanes is the owner of a building within the City of Corona which is leased by both
Orange County Transportation Authority (OCTA) and the Riverside Transportation Commission (RCTC)
91 Express Lanes. Detailed information for each lease is noted below.
On November 1, 2019, the Fund entered a 120 -month lease for the use of 301 Corporate Terrace Circle,
Corona, Ca with the Orange County Transportation Authority. An initial lease receivable was recorded in
the amount of $379,833. As of June 30, 2023, the value of the lease receivable is $291,176. The lessee
is required to make quarterly fixed payments of $12,171. The lease has an interest rate of 1.7670%. The
value of the deferred inflow of resources as of June 30, 2023 was $281,812 and the Fund recognized
lease revenue of $49,011.
On November 1, 2019, the Fund entered a 120 -month lease for the use of 301 Corporate Terrace Circle,
Corona, Ca with the RCTC 91 Express Lanes Enterprise Fund. An initial lease receivable was recorded in
the amount of $379,833. As of June 30, 2023, the value of the lease receivable is $291,175. The lessee
is required to make quarterly fixed payments of $12,171. The lease has an interest rate of 1.7670%. The
value of the deferred inflow of resources as of June 30, 2023 was $281,812 and the Fund recognized
lease revenue of $49,011.
-23-
377
15 Express Lanes Fund
Notes to Financial Statements
June 30, 2023
Note 4. Lease Receivable, Continued
In accordance with the standard, the principal and interest expected to maturity is as follows:
Year Ending June 30
1.
Principal nterest
Total A
2024 $ 91,895
2025 95,950
2026 100,077
2027 103,977
2028 107,337
2029-2032
Total lease receivable
9,687 $ 101,582
8,037 103,987
6,314 106,391
4,518 108,495
2,661 109,998
83,115 735 83,850
$ 582.351 $ 31.952 $ 614.30
Note 5. Capital Assets
Balance Capital
June 30, 2022 Contributions Transfers Additions June 30, 2023
Balance
Capital assets not being depreciated:
Land and land improvements $ 558,405 $ $ $ $ 558,405
Construction easements 53,350 - - 53,350
Total capital assets not being depreciated 611,755 - - 611.755
Capital assets being depreciated and
amortized:
Toll infrastructure 22,219,984 - - (860,110) 21,359,874
Buildings 6,451,978 - - 6,451,978
Equipment, furniture, and fixtures 111,155 - 3,966 - 115,121
Toll facility franchise 352,233,039 2,123,464 - 354,356,503
Total capital assets being depreciated and 381,016,156 2,123,464 3,966 (860,110) 382,283,476
amortized:
Less accumulated depreciation and
amortization for:
Toll infrastructure (3,804,926) - (4,839,006) - (8,643,932)
Buildings (939,385) - (722,825) - (1,662,210)
Equipment, furniture, and fixtures (36,791) - (33,808) - (70,599)
Toll facility franchise (8,730,110) - (7,057,274) - (15,787,384)
Total accumulated depreciation (13,511,212) - (12,652,913) - (26,164,125)
Total capital assets being depreciated and 367,504,944 2,123,464 (12,648,947) (860,110) 356,119,351
amortized, net
Capital assets, net $ 368,116,699 $ 2,123,464 $ (12,648,947) $ (860,110) $ 356,731,106
On September 29, 2016, the Commission entered into a toll facilities agreement with Caltrans providing
the Commission with authorization to toll the 1-15 from Cajalco Road to SR -60 for 50 years commencing
as of the first day on which the 15 Express Lanes open for public use and toll operations. The agreement
also set forth the Commission's rights to Caltrans' right of way and Caltrans' oversight role in the
operations and maintenance of the 15 Express Lanes.
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378
15 Express Lanes Fund
Notes to Financial Statements
June 30, 2023
Note 6. Interfund Transactions
Due from/to other Commission funds: The composition of balances related to due from other funds
and due to other funds of the Commission at June 30, 2023 is as follows:
Payable Fund
Receivable Fund
Amount Explanation
15 Express Lanes Enterprise fund
15 Express Lanes Enterprise fund
Total due from (to) other Commission funds,
net
Commission's General fund
Commission's General fund
$ (78,200) Administrative cost allocation
(32,455) Fringe benefits allocation
$ (110,655)
Contributions and transfers to/from other Commission funds: During 2023, contributions and
transfers to/from other Commission funds were as follows:
Contribution and Transfer Out
Contribution and Transfer In
Amount Explanation
Commission's Governmental activities 15 Express Lanes Enterprise fund
Commission's Governmental activities 15 Express Lanes Enterprise fund
Commission's Governmental activities 15 Express Lanes Enterprise fund
Commission's Capital Projects fund 15 Express Lanes Enterprise fund
15 Express Lanes Enterprise fund
Total contributions/transfers in from
other Commission funds, net
91 Express Lanes Enterprise fund
$ 1,263,354
981
175,826 Transfer of lease revenues
309 Transfer of interest from operations
(43) Transfer of accumulated interest
$ 1,440,427
Contribution of capital and
intangible assets
Transfer of interest from ramp up
reserve
Advances from other funds: A Commission governmental fund advanced $9,000,000 to the 15 Express
Lanes Fund to establish an $18,000,000 Transportation Infrastructure Finance and Innovation Act (TIFIA)
debt service reserveforthe 1-15 Express Lanes project as required no laterthan June 30, 2024. Capitalized
interest on the advance as of June 30, 2022, was $1,402,677. Repayment of this initial Commission
advance is subject to satisfying certain conditions under the related indenture, including the occurrence
of the second anniversary of the TIFIA debt service payment commencement date.
Note 7. Long Term Obligations
The following is a summary of changes in long-term obligations for the year ended June 30, 2023:
Balance Additions / Reductions Balance Due Within
June 30, 2022 Accretion June 30, 2023 One Year
TIFIA loan $ 162,385,853 $ 4,644,502 $ - $ 167,030,355 $
Compensated absences liability 51,489 45,674 (38,916) 58,247 35,452
Total long-term obligations $ 162,437,342 $ 4,690,176 $ (38,916) $ 167,088,602 $ 35,452
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379
15 Express Lanes Fund
Notes to Financial Statements
June 30, 2023
Note 7. Long Term Obligations, Continued
In May 2017, the Commission authorized the issuance and sale of not to exceed $165 million of toll
revenue bonds related to the 15 Express Lanes Project. The TIFIA loan is a senior toll revenue bond per
the 1-15 Express Lanes Project indenture.
TIFIA Loan Agreement:
Outstanding
In July 2017, the Commission executed a TIFIA loan of up to $152,214,260, which
proceeds financed a portion of the costs for the 1-15 Express Lanes Project. During
construction and for a period of up to five years following substantial completion,
interest is compounded and added to the initial TIFIA loan. The TIFIA loan requires
mandatory debt service payments at a minimum and scheduled debt service payments
to the extent additional funds are available. TIFIA debt service payments are expected
to commence on December 1, 2025, which is five years after substantial completion of
the 1-15 Express Lanes Project, through December 1, 2055. The interest rate of the TIFIA
loan is 2.84%. During 2023, $0 was drawn on the TIFIA loan and $4,644,502 interest
was compounded.
$ 167,030,355
In accordance with the TIFIA loan schedule, the annual debt service requirements to maturity for the
TIFIA loan payable throughout the term of the loan are as follows:
Year Ending June 30
Principal
Interest Total
2026
2027
2028
2029-2033
2034-2038
2039-2043
2044-2048
2049-2053
2054-2055
Total
Future compounded interest
Total TIFIA loan
4,017,700
17,483,200
21,475,000
40,678,500
64,144,700
28,922,600
176,721,700
(9,691,345)
$ 167,030,355
$ 5,018,900
5,018,900
5,025,800
24,942,900
23,762,300
20,852,900
17,012,300
9,709,600
1,291,600
$ 112,635,200
$ 5,018,900
5,018,900
5,025,800
28,960,600
41,245,500
42,327,900
57,690,800
73,854,300
30,214,200
$ 289,356,900
Pursuant to the 1-15 Express Lanes Project toll indenture the Commission is required to establish the
following to support the 15 Express Lanes:
• A $1 6.5 million ramp -up reserve prior to substantial completion and commencement of express
lanes operations;
• An $1 8 million TIFIA loan reserve from an advance of Commission Measure A sales tax revenue
up to $3 million per year from 2019 through 2024 to the extent that 15 Express lanes revenues are
not sufficient to fund the TIFIA loan reserve; and
• Up to a $38.5 million backstop loan from Commission Measure A sales tax revenues of up to $3.85
million per year to the extent 15 Express Lanes revenues are not sufficient to cover operations and
maintenance costs, TIFIA loan mandatory debt service, and TIFIA scheduled interest.
-26-
380
15 Express Lanes Fund
Notes to Financial Statements
June 30, 2023
Note 8. Commitments and Contingencies
Cooperative agreements: In January 2017 the Commission entered into a toll operator agreement,
for the operations of the 15 Express Lanes. The toll operator is responsible for day-to-day operations
of the toll collection system. The toll operator agreement expires in April 2026. In December 2022, the
five-year extension options were exercised and the agreement will expire April 2031. The toll operator
agreement provides operating services to the Commission in the annual amount of $7,755,600 for the
first two years of operations. Thereafter, annual amounts will be based on variable pricing.
Purchase commitments: The Fund has entered into other agreements in the ordinary course of
business with companies and other governmental agencies related to operations and maintenance.
These agreements, which are significant, are funded with available and future revenues.
Note 9. Pensions and Other Post -Employment Benefits Other Than Pensions
The Fund participates in the Commission's cost -sharing multiple employer defined benefit pension
plan administered by the California Public Employees' Retirement System and the Commission's OPEB.
Employees of the Fund are employees of the Commission as a whole. The required note disclosures
regarding pension plans and OPEB are included in the Commission's financial statements. Please see
those financial statements for information about the pension plans and OPEB as a whole.
The net pension liability of $73,776 and net OPEB asset of $27,823, reported by the Fund, represent the
Fund's proportional share of the Commission's net pension liabilities of $1,868,313 and net OPEB asset
of $704,600. The Fund's net pension liabilities and OPEB assets each represent 3.9% of the Commission's
net pension liabilities and OPEB assets. For the year ended June 30, 2023, the Fund's contributions
recognized as part of pension and OPEB expenses were $340,452 and ($10,146), respectively.
Note 10. Pronouncements Issued, Not Yet Effective
The GASB pronouncements issued prior to June 30, 2023 that have an effective date that may impact
future financial presentations include:
• GASB Statement No. 99, Omnibus 2022 (The requirements related to financial guarantees and
the classification and reporting derivative instruments within the scope of Statement 53 are
effective for fiscal years beginning after June 15, 2023, and all reporting periods thereafter).
• GASB Statement No. 100, Accounting Changes and Error Corrections, effective for fiscal years
beginning after June 15, 2023; and
• GASB Statement No. 101, Compensated Absences, effective for fiscal year beginning after
December 15, 2023.
-27-
381.
RIVERSIDE
COUNTY
TRANSPORTATION
COMMISSION
Riverside County
Transportation Commission
(951) 787-7141 • www.rctc.org
4080 Lemon Street, 3rd Floor
P.O. Box 12008 • Riverside, CA
92502-2208
382
ATTACHMENT 10
EideBailly
CPAs & BUSINESS ADVISORS
Independent Auditor's Report on Compliance
With Aspects of Contractual Agreements
Board of Commissioners
Riverside County Transportation Commission
Riverside, California
We have audited, in accordance with auditing standards generally accepted in the United States of
America the financial statements of the Riverside County Transportation Commission (Commission) as of
and for the year ended June 30, 2023, and the related notes to the financial statements, which
collectively comprise the Commission's basic financial statements, and have issued our report thereon
dated October 31, 2023.
In connection with our audit, nothing came to our attention that caused us to believe that the
Commission failed to comply with the terms, covenants, provisions or conditions of Sections 6.2(g) and
6.2(1) contained in the Reimbursement Agreement, dated October 1, 2014, with State Street Bank and
Trust Company, a wholly -owned subsidiary of State Street Corporation, related to the Commercial Paper
Notes (Limited Tax Bonds) Series A, insofar as they relate to accounting matters. However, our audit was
not directed primarily toward obtaining knowledge of such noncompliance. Accordingly, had we
performed additional procedures, other matters may have come to our attention regarding the
Commission's noncompliance with the above -referenced terms, covenants, provisions or conditions of
the Reimbursement Agreement, insofar as they relate to accounting matters.
The report is intended solely for the information and use of the Board of Commissioners and
management of the Commission and State Street Bank and Trust Company and is not intended to be,
and should not be, used by anyone other than these specified parties.
Rancho Cucamonga, California
October 31, 2023
What inspires you, inspires us. eidebailly.com 1
10681 Foothill Blvd., Ste. 300 Rancho Cucamonga, CA1730-3831 T 909.466.4410 F 909.466.4431 EOE
ATTACHMENT 11
Management Letter
For Fiscal Year Ended June 30, 2023
Riverside County Transportation
Commission
EideBai11y
eidebailly.com
384
EideBailly
CPAs & BUSINESS ADVISORS
To the Management of the
Riverside County Transportation Commission
Riverside, California
In planning and performing our audit of the financial statements of the Riverside County Transportation
Commission (Commission) as of and for the year ended June 30, 2023, in accordance with auditing standards
generally accepted in the United States of America, we considered the Commission's internal control over
financial reporting (internal control) as a basis for designing auditing procedures that are appropriate in the
circumstances for the purpose of expressing our opinion on the financial statements, but not for the purpose of
expressing an opinion on the effectiveness of the Commission's internal control. Accordingly, we do not express
an opinion on the effectiveness of the Commission's internal control.
During our audit we became aware of a deficiency in internal control other than significant deficiencies and
material weaknesses that are opportunities for strengthening internal controls and operating efficiency. The
observation and recommendation is summarized below. This letter does not affect our report dated October 31,
2023, on the financial statements of the Commission.
We will review the status of these comments during our next audit engagement. We have already discussed
these comments and suggestions with various Commission personnel, and we will be pleased to discuss them in
further detail at your convenience, to perform any additional study of these matters, or to assist you in
implementing the recommendations.
CURRENT YEAR OBSERVATIONS AND RECOMMENDATIONS
Revenue Agreement Setup in Eden
Observation:
While RCTC-Finance performed due diligence on Agency funding agreements, it was discovered that a
construction cooperative agreement for the 1-215 / Placentia Avenue Interchange (Project) was classified as a
"Payable" agreement as opposed to a "Receivable" agreement by Program staff. As a result, this prevented RCTC-
Finance staff from determining if the Project had available funds to offset Local funding sources towards the
eligible expenditures related to the Project.
Recommendation:
We recommend the Commission strengthen its internal control process to ensure that all project funding
agreements, including amendments, are consistently reported to RCTC-Finance.
Management's Response:
RCTC-Finance will work with both Program staff to stress the importance with providing accurate and detailed
information within internal documents, related to funding agreements. This will ensure eligible Project
expenditures are requested to be reimbursed timely by funding agencies.
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****************************************
Our audit procedures are designed primarily to enable us to form an opinion on the financial statements, and
therefore, may not bring to light all weaknesses in policies or procedures that may exist. We aim, however, to
use our knowledge of the Commission gained during our work to make comments and suggestions that we hope
will be useful to you.
We would be pleased to discuss these comments and recommendations with you at any time.
This report is intended solely for the information and use of management of the Commission, and others within
the Commission and is not intended to be and should not be used by anyone other than these specified parties.
.„4:4 L 7°
Rancho Cucamonga, California
October 31, 2023
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ATTACHMENT 12
EideBailly
CPAs & BUSINESS ADVISORS
October 31, 2023
To the Audit Ad Hoc Committee
Riverside County Transportation Commission
Riverside, California
We have audited the financial statements of Riverside County Transportation Commission (Commission), as of
and for the year ended June 30, 2023, and have issued our report thereon dated as indicated below:
Report
Annual Comprehensive Financial Report (ACFR)
RCTC 91 Express Lanes Fund
RCTC 15 Express Lanes Fund
State Transit Assistance Fund
Local Transportation Fund
State of Good Repair Fund
Proposition 1B Rehabilitation, Safety and
Security Project Accounts
Low Carbon Transit Operations Program Account
Single Audit
Audit Report Date
October 31, 2023
October 31, 2023
October 31, 2023
October 31, 2023
October 31, 2023
October 31, 2023
October 31, 2023
October 31, 2023
October 31, 2023
Professional standards require that we advise you of the following matters relating to our audit.
Our Responsibility in Relation to the Financial Statement Audit under Generally Accepted Auditing Standards
and Government Auditing Standards and our Compliance Audit under the Uniform Guidance
As communicated in our letter dated June 22, 2023, our responsibility, as described by professional standards, is
to form and express an opinion about whether the financial statements that have been prepared by
management with your oversight are presented fairly, in all material respects, in accordance with accounting
principles generally accepted in the United States of America and to express an opinion on whether the
Commission complied with the types of compliance requirements described in the OMB Compliance Supplement
that could have a direct and material effect on each of the Commission's major federal programs. Our audit of
the financial statements and major program compliance does not relieve you or management of its respective
responsibilities.
Our responsibility, as prescribed by professional standards, is to plan and perform our audit to obtain
reasonable, rather than absolute, assurance about whether the financial statements are free of material
misstatement. An audit of financial statements includes consideration of internal control over financial reporting
as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of
expressing an opinion on the effectiveness of the entity's internal control over financial reporting. Accordingly,
as part of our audit, we considered the internal control of the Commission solely for the purpose of determining
our audit procedures and not to provide any assurance concerning such internal control.
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Our responsibility, as prescribed by professional standards as it relates to the audit of the Commission's major
federal program compliance, is to express an opinion on the compliance for each of the Commission's major
federal programs based on our audit of the types of compliance requirements referred to above. An audit of
major program compliance includes consideration of internal control over compliance with the types of
compliance requirements referred to above as a basis for designing audit procedures that are appropriate in the
circumstances and to test and report on internal control over compliance in accordance with the Uniform
Guidance, but not for the purpose of expressing an opinion on the effectiveness of internal control over
compliance. Accordingly, as a part of our major program compliance audit, we considered internal control over
compliance for these purposes and not to provide any assurance on the effectiveness of the Commission's
internal control over compliance.
We are also responsible for communicating significant matters related to the audit that are, in our professional
judgment, relevant to your responsibilities in overseeing the financial reporting process. However, we are not
required to design procedures for the purpose of identifying other matters to communicate to you.
We have provided our comments regarding internal controls during our audit in our Independent Auditor's
Report on Internal Control over Financial Reporting and on Compliance and Other Matters Based on an Audit of
Financial Statements Performed in Accordance with Government Auditing Standards dated October 31, 2023.
We have also provided our comments regarding compliance with the types of compliance requirements referred
to above and internal controls over compliance during our audit in our Independent Auditor's Report on
Compliance for the Major Federal Program and Report on Internal Control Over Compliance Required by the
Uniform Guidance dated October 31, 2023.
Planned Scope and Timing of the Audit
We conducted our audit consistent with the planned scope and timing we previously communicated to you.
Compliance with All Ethics Requirements Regarding Independence
The engagement team, others in our firm, as appropriate, our firm, and other firms utilized in the engagement,
if applicable, have complied with all relevant ethical requirements regarding independence.
Significant Risks Identified
As stated in our auditor's report, professional standards require us to design our audit to provide reasonable
assurance that the financial statements are free of material misstatement whether caused by fraud or error. In
designing our audit procedures, professional standards require us to evaluate the financial statements and
assess the risk that a material misstatement could occur. Areas that are potentially more susceptible to
misstatements, and thereby require special audit considerations, are designated as "significant risks". We have
identified the following as significant risks.
• Management override
• Revenue recognition
• Subscription -Based Information Technology Arrangements
2
388
Qualitative Aspects of the Entity's Significant Accounting Practices
Significant Accounting Policies
Management has the responsibility to select and use appropriate accounting policies. A summary of the
significant accounting policies adopted by the Commission is included in Note 1 to the financial statements. As
described in Note 14, the Commission changed accounting policies related to accounting for certain IT
arrangements to adopt the provisions of GASB Statement No. 96, Subscripton-Based Information Technology
Arrangements. Accordingly, the accounting change has been retrospectively applied to the financial statements
beginning July 1, 2022. No matters have come to our attention that would require us, under professional
standards, to inform you about (1) the methods used to account for significant unusual transactions and (2) the
effect of significant accounting policies in controversial or emerging areas for which there is a lack of
authoritative guidance or consensus.
Significant Accounting Estimates
Accounting estimates are an integral part of the financial statements prepared by management and are based
on management's current judgments. Those judgments are normally based on knowledge and experience about
past and current events and assumptions about future events. Certain accounting estimates are particularly
sensitive because of their significance to the financial statements and because of the possibility that future
events affecting them may differ markedly from management's current judgments.
The most sensitive accounting estimates affecting the financial statements are:
• Net pension liabilities and net other postemployment benefits (OPEB) assets, disclosures, and related
deferred inflows/outflows and expenses are based on actuarial valuations which include assumptions
adopted by the California Public Employees' Retirement System (CaIPERS) and the Commission.
We evaluated the key factors and assumptions used to develop these estimates and determined that they are
reasonable in relation to the basic financial statements taken as a whole.
Financial Statement Disclosures
Certain financial statement disclosures involve significant judgment and are particularly sensitive because of
their significance to financial statement users. The most sensitive disclosures affecting Commission's financial
statements relate to:
• Net Pension liabilities and Net OPEB assets in Notes 11 and 12, respectively, are sensitive to the underlying
actuarial assumptions used including, but not limited to, the investment rate of return and discount rate.
As disclosed in Notes 11 and 12, a 1% increase or decrease in the discount rate has a significant effect on
the pension and OPEB liabilities/assets.
Significant Difficulties Encountered during the Audit
We encountered no significant difficulties in dealing with management relating to the performance of the audit.
3
389
Uncorrected and Corrected Misstatements
For purposes of this communication, professional standards require us to accumulate all known and likely
misstatements identified during the audit, other than those that we believe are trivial, and communicate them
to the appropriate level of management. Further, professional standards require us to also communicate the
effect of uncorrected misstatements related to prior periods on the relevant classes of transactions, account
balances or disclosures, and the financial statements as a whole. Uncorrected misstatements or matters
underlying those uncorrected misstatements could potentially cause future -period financial statements to be
materially misstated, even though the uncorrected misstatements are immaterial to the financial statements
currently under audit.
The following summarizes uncorrected financial statement misstatements whose effects in the current and prior
periods, as determined by management, are immaterial, both individually and in the aggregate, to the financial
statements taken as a whole.
Governmental Activities
Overstatement of Lease Liabilities $1,550,023
Overstatement of Right -To -Use Assets 1,464,811
Overstatement of expense 85,212
The effect of these uncorrected misstatements, including the effect of the reversal of prior year uncorrected
misstatements as of and for the year ended June 30, 2023, is an understatement of net position of $85,212.
Disagreements with Management
For purposes of this letter, professional standards define a disagreement with management as a matter,
whether or not resolved to our satisfaction, concerning a financial accounting, reporting, or auditing matter,
which could be significant to the financial statements or the auditor's report. No such disagreements arose
during the course of the audit.
Circumstances that Affect the Form and Content of the Auditor's Report
For purposes of this letter, professional standards require that we communicate any circumstances that affect
the form and content of our auditor's report. As described in Note 14 to the financial statements, due to the
adoption of GASB Statement No. 96, Subscription -Based Information Technology Arrangements, the Commission
restated opening balances as of July 1, 2022. We have included an emphasis of matter in our report regarding
this restatement.
Representations Requested from Management
We have requested certain written representations from management which are included in the management
representation letter dated October 31, 2023.
Management's Consultations with Other Accountants
In some cases, management may decide to consult with other accountants about auditing and accounting
matters. Management informed us that, and to our knowledge, there were no consultations with other
accountants regarding auditing and accounting matters.
4
390
Other Significant Matters, Findings, or Issues
In the normal course of our professional association with the Commission, we generally discuss a variety of
matters, including the application of accounting principles and auditing standards, significant events or
transactions that occurred during the year, operating conditions affecting the entity, and operating plans and
strategies that may affect the risks of material misstatement. None of the matters discussed resulted in a
condition to our retention as Commission's auditors.
Other Information Included in Annual Reports
Pursuant to professional standards, our responsibility as auditors for other information, whether financial or
nonfinancial, included in the Commission's annual reports, does not extend beyond the financial information
identified in the audit report, and we are not required to perform any procedures to corroborate such other
information.
Additionally, in accordance with such standards, we have read the introductory and statistical sections of the
Commission's annual report and considered whether such information, or the manner of its presentation was
materially inconsistent with its presentation in the financial statements.
Our responsibility also includes communicating to you any information which we believe is a material
misstatement of fact. Nothing came to our attention that caused us to believe that such information, or its
manner of presentation, is materially inconsistent with the information, or manner of its presentation,
appearing in the financial statements.
Group Audits
The financial statements include the financial statements of the Service Authority for Freeway Emergencies
(SAFE), a blended component unit of the Commission, which for the purposes of our audit we do not consider to
be a significant component within the financial statements. Consistent with the audit of the financial statements
as a whole, our audit included obtaining an understanding of SAFE and its environment, including internal
control, sufficient to assess the risks of material misstatement of the financial statements and completion of
further audit procedures.
This report is intended solely for the information and use of the Board of Commissioners, the Audit Ad Hoc
Committee, and management of the Commission and is not intended to be, and should not be, used by anyone
other than these specified parties.
Rancho Cucamonga, California
5
391
ATTACHMENT 13
EideBailly
CPAs & BUSINESS ADVISORS
Independent Accountant's Report
on the Article XII-B Appropriations Limit Calculation
Board of Commissioners
Riverside County Transportation Commission
Riverside, California
We have performed the procedures enumerated below, on the Appropriations Limit Calculation of the
Riverside County Transportation Commission (Commission) prepared in accordance with Article XIII-B of
the California Constitution for the fiscal year ended June 30, 2023. The Commission's management is
responsible for the Appropriations Limit Calculation.
The Commission has agreed to and acknowledged that the procedures performed are appropriate to
meet the intended purpose of evaluating the Appropriations Limit Calculation and we will report on
findings based on the procedures performed. This report may not be suitable for any other purpose. The
procedures performed may not address all the items of interest to a user of this report and may not
meet the needs of all users of this report and, as such, users are responsible for determining whether
the procedures performed are appropriate for their purposes.
The procedures and the associated findings are as follows:
1. We obtained the completed worksheets setting forth the calculations necessary to establish the
Commission's 2022-23 appropriations limit and compared the limit and annual adjustment
factors included in those worksheets to the limit and annual adjustment factors that were
adopted by resolution of the Board of Commissioners. We also compared the population and
inflation options included in the aforementioned worksheets to those that were selected by a
recorded vote of the Board of Commissioners.
Finding: No exceptions were found as a result of this procedure.
2. We added last year's limit to the annual adjustment amount and compared the resulting
amount to the 2022-23 appropriations limit.
Finding: No exceptions were found as a result of this procedure.
3. We compared the current year information to the worksheets described in Procedure 1 above
and to information provided by the California State Department of Finance.
Finding: No exceptions were found as a result of this procedure.
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4. We agreed the prior year appropriations limit to the prior year appropriations limit adopted by
the Board of Commissioners.
Finding: No exceptions were found as a result of this procedure.
We were engaged by the Commission to perform this agreed -upon procedures engagement and
conducted our engagement in accordance with attestation standards established by the American
Institute of Certified Public Accountants. We were not engaged to and did not conduct an examination
or review, the objective of which would be the expression of an opinion or conclusion, respectively, on
the Appropriations Limit Calculation. Accordingly, we do not express such an opinion or conclusion. Had
we performed additional procedures, other matters might have come to our attention that would have
been reported to you.
We are required to be independent of the Commission and to meet our other ethical responsibilities, in
accordance with the relevant ethical requirements related to our agreed -upon procedures engagement.
No procedures have been performed with respect to the determination of the appropriation limit for
the base year, as defined by Article XIII-B of the California Constitution.
This report is intended solely for the information and use of the Board of Commissioners and
management of the Commission and is not intended to be and should not be used by anyone other than
these specified parties.
Rancho Cucamonga, California
October 31, 2023
2
393
ATTACHMENT 14
Measure A Commuter Assistance Program
Agreed -Upon Procedures
June 30, 2023
Riverside County
Transportation Commission
EideBai11y
eidebailly.com
394
Riverside County Transportation Commission
Measure A Commuter Assistance Program
Table of Contents
June 30, 2023
Independent Accountant's Agreed -Upon Procedures Report 1
Schedule of Selected Purchases of Gift Cards by the Contractor 4
Schedule of Selected Employee Incentive Payments Made by the Contractor 5
395
EideBailly
CPAs & BUSINESS ADVISORS
Independent Accountant's Report
To the Board of Commissioners
Riverside County Transportation Commission
Riverside, California
We have performed the procedures enumerated below, on certain requirements of the Riverside
County Transportation Commission's (Commission or RCTC) agreement with William Sale Partnership
USA Inc. (WSP) to administer its Measure A Commuter Assistance Program (Program) for the year ended
June 30, 2023. The Commission's management is responsible for the administration and operation of
the Program.
As background information for this engagement to perform agreed -upon procedures, we were provided
with: Resolution No. 22-002, Resolution of the Commission Amending Guidelines for the administration
of the Measure A funded Commuter Incentive Programs, and Agreement No.15-41-038-00, Agreement
for Commuter Assistance Program Graphic Design and Program Administration Services between WSP
USA Inc. and the Commission, entered into as of June 1, 2015 for the period of June 1, 2015 to June 30,
2024, as amended per Amendments Nos. 1 to 6, and the Inland Empire (IE) Commuter Incentives
Programs and Processes Standard Operating Procedures. In addition, we received an explanation of the
WSP registration process with the employer and employee from staff at WSP.
The Commission has agreed to and acknowledged that the procedures performed are appropriate to
meet the intended purpose of assessing WSP's compliance with the agreement and we will report on
findings based on the procedures performed.
This report may not be suitable for any other purpose. The procedures performed may not address all
the items of interest to a user of this report and may not meet the needs of all users of this report and,
as such, users are responsible for determining whether the procedures performed are appropriate for
their purposes.
The procedures and the associated findings are as follows:
1. Obtain an understanding of the Administration of the Measure A Commuter Assistance Program
by reading Resolution No. 22-002, Resolution of the Commission Amending Guidelines for the
Administration of the Measure A Funded Commuter Incentive Program.
Finding: No exceptions were found as a result of performing this procedure.
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2. Obtain a listing of all disbursements to vendors and invoiced to the Commission for reimbursement by
WSP for the purchase of gift cards for the year ending June 30, 2023, and haphazardly select a sample of
10 items for the year for the testing and report any findings (see Exhibit 1). The procedures related to
Exhibit 1 are as follows:
a. Agree the amount recorded as disbursed by WSP to cancelled checks.
b. Agree the amount recorded as itemized in WSP invoices to the Commission's accounting
records.
c. Agree the amount recorded and the payee on the Check Request Register to the log of
requested gift cards maintained by WSP.
Finding: No exceptions were found as a result of performing these procedures.
3. Obtain the "Commission Payments by Employer" reports that list recorded disbursements made to
recipients by WSP for the year and haphazardly select a sample of 10 items for the year for testing and
report any findings (see Exhibit 2). Our procedures and findings related to Exhibit 2 are as follows:
a. Determine that the employer was registered by inspecting the Employer Partnership Agreement
(EPA).
b. Determine that the employee was registered by inspecting the Incentive Application Form
(Application).
c. Agree WSP's disbursements to the Application and observe proper approval of the Application.
d. Recalculate the number of days the employee participated in each rideshare mode and the
incentive earned for each rideshare mode and agree those totals to the amounts listed on the
monthly incentive claim form in order to mathematically check the monthly claim form.
e. Agree the daily amount per mode of transportation to the amount approved in the EPA.
f. Agree the recorded disbursement amount per the WSP Incentive Payment Report to the
employer transmittal letter.
Finding: No exceptions were found as a result of performing these procedures.
4. Compare WSP's total gift card inventory balance as of June 30, 2023, to the inventory schedule which
denotes the amount of gift cards on hand at that date and report the results. In addition, 100% of the
gift cards as reported on the inventory schedule on June 30, 2023, will be selected for recount.
Finding: We met with the WSP Incentive Specialist virtually to conduct a gift card inventory of gift cards
for Riverside County Service Authority for Freeway Emergencies (RC Safe), RCTC, and the San Bernardino
County Transportation Authority (SBCTA) (all funded by RCTC). No exceptions were found as a result of
performing this procedure.
Amazon Stater Bros. Target Wal-Mart Total
RC Safe $ 1,585 $ 2,755 $ 3,080 $ 3,000 $ 10,420
RCTC Advantage Rideshare Program 10,470 9,970 15,775 12,365 48,580
SBCTA Option Rideshare Program 11,680 13,065 7,370 19,995 52,110
$ 111,110
2
397
5. Confirm that the storage and security of gift cards by WSP is consistent with IE Commuter Standard
Operating Procedures.
Finding: The Incentives Programs and Processes Standard Operating Procedures note that gift cards are
secured in a safe. Monthly, the gift cards are manually counted by the Incentives Specialist and Manager
where they are logged on the Monthly Inventory Spreadsheet. No exceptions were found as a result of
performing these procedures.
We were engaged by the Commission to perform this agreed -upon procedures engagement and conducted our
engagement in accordance with attestation standards established by the American Institute of Certified Public
Accountants. We were not engaged to and did not conduct an examination or review, the objective of which
would be the expression of an opinion or conclusion, respectively, on compliance with the Commission's
agreement with WSP to administer the Program. Accordingly, we do not express such an opinion or conclusion.
Had we performed additional procedures, other matters might have come to our attention that would have
been reported to you.
We are required to be independent of the Commission and WSP and to meet our other ethical responsibilities,
in accordance with the relevant ethical requirements related to our agreed -upon procedures engagement.
This report is intended solely for the information and use of the Board of Commissioners and management of
the Commission and is not intended to be and should not be used by anyone other than these specified parties.
Rancho Cucamonga, California
October 31, 2023
3
398
Exhibit 1
Riverside County Transportation Commission
Measure A Commuter Assistance Program
Schedule of Selected Purchases of Gift Cards by the Contractor
Fiscal Year Ended June 30, 2023
Check Date Project Vendor Check Number Amount
07/26/2022 IE Commuter Incentive Program Amazon 2349195 $ 9,000
07/26/2022 IE Commuter Incentive Program Stater Bros* 4034241 19,998
07/26/2022 IE Commuter Incentive Program Target 4034251 5,000
07/26/2022 IE Commuter Incentive Program Wal-Mart 4034305 15,000
07/28/2022 IE Commuter Incentive Program Stater Bros* 4034590 2,499
08/04/2022 IE Commuter Incentive Program Wal-Mart 4035393 3,500
10/20/2022 IE Commuter Incentive Program Amazon 2420215 40,000
12/20/2022 IE Commuter Incentive Program Amazon 2470180 10,000
12/29/2022 IE Commuter Incentive Program Amazon 2477667 20,000
03/07/2023 IE Commuter Incentive Program Target 4056295 10,000
* Gross amount of the gift cards purchased was $23,680 as a discount was provided totaling $1,183.
4
399
Exhibit 2
Riverside County Transportation Commission
Measure A Commuter Assistance Program
Schedule of Selected Employee Incentive Payments Made by the Contractor
Fiscal Year Ended June 30, 2023
Employer Name
Participant Incentive Disbursement Commute
Initials Type Date Mode Amount
Soboba Casino T.R. Stater Bros 7/14/2022 Carpool $ 125
California School for the Deaf A.J. Target 9/1/2022 Bus 125
County of Orange M.M. Target 9/18/2022 Rail 125
Loma Linda University Health (LLUH) A.C. Stater Bros 10/20/2022 Carpool 125
NFI Industries J.B. Target 6/6/2023 Carpool 125
Fontana Unified School District N.M. Amazon 8/8/2022 Carpool 125
University of California Riverside (UCR) F.F Amazon 9/21/2022 Vanpool 125
Cathay Bank L.C. Target 1/17/2023 Carpool 85
Ventura Foods A.D. Walmart 3/14/2023 Carpool 125
City of Santa Ana (Police Department) E.A. Amazon 6/21/2023 Carpool 125
5
400
ATTACHMENT 15
RIVERSIDE
COUNTY
TRANSPORTATION
COMMISSION
October 31, 2023
4080 Lemon Street, 3rd Floor • Riverside, CA
Mailing Address: P.O. Box 12008 • Riverside, CA 92502-2208
951.787.7141 • 951.787.7920 • www.rctc.org
Board of Commissioners
Riverside County Transportation Commission
Riverside, California
The Annual Comprehensive Financial Report (ACFR) of the Riverside County Transportation Commission
(Commission) for the year ended June 30, 2023 is hereby submitted for your receipt and acceptance. The
ACFR is presented in three sections consisting of Introductory, Financial, and Statistical. The Financial
Section includes the audited financial statements and other supplementary information and the
independent auditor's report on those financial statements. Management of the Commission is
responsible for the financial statements and other information presented in the ACFR.
As the Executive Director and Chief Financial Officer of the Commission, we have reviewed the ACFR for
the year ended June 30, 2023. Based on our knowledge, the ACFR does not contain any untrue statement
of a material fact or omit to state a material fact necessary in order to make the statements made in the
ACFR not misleading with respect to the period covered by the ACFR.
Additionally, based on our knowledge, the financial statements and other financial information included
in the ACFR fairly present in all material respects the financial condition and results of operations of the
Commission as of and for the year ended June 30, 2023.
Anne Mayer, Executive Director Sergio Vidal, Chief Financial Officer
401
ATTACHMENT 16
RIVERSIDE
COUNTY
TRANSPORTATION
COMMISSION
October 31, 2023
4080 Lemon Street, 3rd Floor • Riverside, CA
Mailing Address: P.O. Box 12008 • Riverside, CA 92502-2208
951.787.7141 • 951.787.7920 • www.rctc.org
Board of Commissioners
Riverside County Transportation Commission
Riverside, California
In connection with the submission of the Annual Comprehensive Financial Report (ACFR) of the Riverside County
Transportation Commission (Commission) for the year ended June 30, 2023, as the management and Directors of
the Commission, we understand that we are responsible for the operations and activities of the Commission's
programs, projects, and administration.
Accordingly, we hereby make the following representations based upon our knowledge. We are responsible for
establishing and maintaining controls and procedures related to these operations and activities. We have designed
such controls and procedures to ensure that material information is made known to us, particularly during the year
ended June 30, 2 02 3. The controls and procedures have been effective for the year ended June 30, 2023 and through
the date of this letter. There have been and are no significant deficiencies in the design or operation of internal
controls regarding financial reporting for the same period which could adversely affect the Commission's ability to
record, process, summarize and report financial data. There have been and are no material weaknesses in internal
controls. There have been no significant changes in internal control or in other factors that could significantly affect
internal controls subsequent to June 30, 2023.
Management also recognizes its responsibility for fostering a strong ethical climate so that the Commission's affairs
are conducted according to the highest standards of personal and organizational conduct. In connection with this
responsibility, we are not aware of any fraud, whether or not material, that involves management or other
employees who have a significant role in the Commission's internal controls.
Aaron Hake
Anne Mayer, Executive Director Aaron Hake, Deputy Executive Director
Sergio Vidal Jillian Guizado
Sergio Vidal, Chief Financial Officer Jillian Guizado, Planning and Programming Director
Lorelle Moe -Luna David Thomas
Lorelle Moe -Luna, Multimodal Services Director David Thomas, Toll Project Delivery Director
Jennifer Crosson David Knudsen
Jennifer Crosson, Toll Operations Director David Knudsen, External Affairs Director
Erik Galloway Aaron Gabbe
Erik Galloway, Project Delivery Director Aaron Gabbe, Regional Conservation Director
Lisa Mobley
Lisa Mobley, Administrative Services Director/Clerk
of the Board
402
Signature: `'---
Email: svidal@rctc.org
Signature: Z-,44/-1,7,1*, L.w.sti
Email: lmoe-tuna@rctc.org
Signature: Ae•e-A_
Email: dknudsen@rctc.org
Signature: .Aa4"- 6`
Email: agabbe@rctc.org
Signature:
Email: Imobley@rctc.org
Signature:
Email: jguizado@rctc.org
Signature: a
Email: DTHOMAS@RCTC.ORG
Signature:
Email: egalloway@rctc.org
Signature' Jen ,Tcr Crosson (Oct 26, 2023 11:56 PDT)
Email: jcrosson@rctc.org
Signature:
Email: ahake@rctc.org
•�1
EideBailly,
CPAs & BUSINESS ADVISORS
RIVERSIDE COUNTY TRANSPORTATION COMMISSION
Communication With Those Charged With Governance
404
December 1 1, 2023
AUDIT SERVICES
• Audits of the following:
• Annual Comprehensive Financial Report (Annual Report)
• 91 Express Lanes Fund
• 15 Express Lanes Fund
• Local Transportation Fund (LTF)
• State Transit Assistance Fund (STAF)
• State of Good Repair Fund (SGR)
• Proposition 1B Rehabilitation, Safety, and Security Project Accounts (Proposition 1 B)
• Low Carbon Transit Operations Program (LCTOP) Account
• Audit report on compliance over the major federal program, schedule of expenditures of federal
awards and internal control in accordance with 2 CFR 200 (Single Audit)
• Reports on internal control over financial reporting and on compliance and other matters in accordance
with Government Auditing Standards
• Report on compliance with aspects of contractual agreements — Commercial Paper
• Perform Agreed Upon Procedures (AUP) on the following:
• Appropriations Limit Calculation
• Measure A Commuter Assistance Program
405
OUR RESPONSIBILITY IN ACCORDANCE WITH PROFESSIONAL
STANDARDS
• Form and express an opinion about whether the financial statements which
are the responsibility of management, with your oversight, are presented
fairly, in all material respects, in accordance with U.S. GAAP.
• Express an opinion as to whether RCTC complied with direct and material
compliance requirements described in the OMB Compliance Supplement for
major federal programs.
• Our responsibility is to plan and perform our audit to obtain reasonable,
rather than absolute, assurance about whether the financial statements are
free of material misstatement.
• We considered internal control over financial reporting and over direct and
material compliance requirements for major federal programs. Such
considerations were solely for the purpose of determining our audit
procedures and not to provide any assurance concerning such internal
control.
406
SUMMARY OF AUDIT RESULTS
Financial
Statements
• Unmodified opinion on the Commission's
Annual Report and stand-alone reports
Government
Auditing
Standards
• No material weaknesses or significant
deficiencies were reported
Single Audit
• Unmodified opinion on compliance
• No material weaknesses, significant
deficiencies or compliance findings were
reported
407
AUDITOR COMMUNICATIONS
1
Ethics and Independence
• We have complied with all relevant ethical requirements
regarding independence.
Significant Accounting Policies
• Summary of significant accounting polices — Note 1
• Adopted GASB 96, Subscription -Based IT Arrangements (SBITAs),
effective July 1, 2022- Note 14
Significant Risks Identified
• Management Override
• Revenue Recognition
• SBITAs
408
AUDITOR COMMUNICATIONS
Significant Estimates/ Sensitive Disclosures
• Net Pension Liability (Note 1 1)
• Net Other Postemployment Benefit (OPEB) Asset (Note 1 2)
Uncorrected Misstatements
• Governmental Activities - Net impact on net position and
expenses -$85 thousand (overstatement of lease liabilities and
right -to -use assets)
AUDITOR COMMUNICATIONS
Significant Difficulties
• We encountered no significant difficulties in dealing with
management.
Disagreements with Management
• No disagreements arose during the course of the audit.
THANK YOU
Roger Alfaro
Partner
ralfaro@eidebailly.com
909.466.4410
EideBailly®
CPAs & BUSINESS ADVISORS
This presentation is presented with the understanding that the information contained does not constitute legal, accounting or other professional advice.
It is not intended to be responsive to any individual situation or concerns, as the contents of this presentation are intended for general information
purposes only. Viewers are urged not to act upon the information contained in this presentation without first consulting competent legal, accounting or
other professional advice regarding implications of a particular factual situation. Questions and additional information can be submitted to your Eide
Bailly representative, or to the presenter of this session.
411
AGENDA ITEM 6C
RIVERSIDE COUNTY TRANSPORTATION COMMISSION
DATE:
January 10, 2024
TO:
Riverside County Transportation Commission
FROM:
Sergio Vidal, Chief Financial Officer
Michele Cisneros, Deputy Director of Finance
THROUGH:
Anne Mayer, Executive Director
SUBJECT:
Quarterly Financial Statements
STAFF RECOMMENDATION:
This item is for the Commission to:
1) Receive and file the Quarterly Financial Statements for the three months ended
September 2023.
BACKGROUND INFORMATION:
During the first three months of the fiscal year, staff monitored the revenues and expenditures
of the Commission. The first quarter of the fiscal year is primarily directed toward completing
fiscal year-end activities for the prior year. Staff expects most categories to present a more
realistic outlook beginning in the second quarter.
The operating statement shows the Measure A and Local Transportation Fund (LTF) sales tax
revenues for the first quarter at 7 percent of the budget. This is a result of Governmental
Accounting Standards Board (GASB) Statement No. 33, Accounting and Financial Reporting for
nonexchange Transactions. GASB Statement No. 33 requires sales tax revenues to be accrued
for the period in which they are collected at the point of destination or sale, as applicable. The
California Department of Tax and Fee Administration collects the sales tax funds and remits
these funds to the Commission after the reporting period for the businesses. This creates a
two -month lag in the receipt of revenues by the Commission. Accordingly, these financial
statements reflect the revenues related to collections for July 2023.
On a cash basis, the Measure A and LTF sales tax receipts are 2.04 higher and 0.75 lower,
respectively, than the same period last fiscal year. State Transit Assistance revenues, including
State of Good Repair for the first quarter of Fiscal Year 2023/24, are expected to be received in
the second quarter of FY 2023/24. Staff will continue to monitor the trends in the sales taxes
and report to the Commission any necessary adjustments in revenue projections.
Federal, state, and local reimbursements are generally on a reimbursement basis. The
Commission will receive these revenues as eligible project costs are incurred and invoiced to
Agenda Item 6C
412
the respective agencies. The negative revenue amounts for federal, state, and local
reimbursements reflect the reversal of the FY 2022/23 accrued revenues at the beginning of
FY 2023/24 in excess of amounts billed during the first quarter. Reimbursement invoices for
expenditures for the first quarter will be prepared and submitted in the second quarter.
During the FY 2023/24 budget process, the Commission estimated the Transportation Uniform
Mitigation Fee (TUMF) revenues at $31 million passed through from Western Riverside Council
of Governments. During the first quarter of FY 2023/24, the Commission has not received TUMF
revenues. The Commission expects to receive the first quarter revenues in the second quarter.
The negative TUMF zone revenue reimbursement reflects the reversal of the FY 2022/23
accrued revenues at the beginning of FY 2023/24 in excess of amounts billed during the first
quarter for the 1-10 Highland Springs Avenue Interchange project.
The RCTC 91 Express Lanes and 15 Express Lanes toll revenues, penalties, and fees are at
$20,620,387 and $10,514,739, respectively, totaling $31,135,126 for the first quarter of
FY 2023/24. The operating statement shows toll revenues, penalties, and fees at 32 percent of
the budget. This reflects periodic toll rate changes made based on traffic volumes according to
the approved toll policy on the RCTC 91 Express Lanes. Staff will continue to monitor the toll
transactions and/or trips and non -toll revenues.
The operating statement shows other revenues at 42 percent of the $723,500 budget and
reflects property management lease revenues.
During the FY 2023/24 budget process, the Commission estimated investment income at
$13,242,700 due to current market conditions. The operating statement shows investment
income, which includes net unrealized investment gains and losses at $2,673,834.
The expenditures/expenses and other financing sources/uses categories are in line overall with
the expectations with the following exceptions:
• Salaries and benefits are under budget primarily due to unfilled positions for an
Accounting Technician, IT Administrator, and Senior Capital Projects Manager;
• Professional services are under budget primarily due to unused budget authority for
general legal services; financial advisory services; audit services; rail operations and
development activities; and highway, commuter assistance, specialized transportation,
and regional conservation other professional services;
• Support costs are under budget due to unused budget authority for rail station
maintenance and repairs; express lanes operations and maintenance; call box
maintenance and repairs; advertising; and software and computer maintenance and
repairs;
• Program operations are under budget due to unused budget authority for rail station
security; toll operations; motorist and commuter assistance program operations; and
highway and rail program management;
Agenda Item 6C
413
• The status of significant Commission capital projects (engineering, construction, design -
build, and right of way/land) with budget amounts exceeding $5 million is discussed
within Attachment 1;
• Operating and capital disbursements are made as claims are submitted to the
Commission by transit operators;
• Special studies unused budget authority is related to feasibility studies;
• Local street and roads expenditures are related to Measure A sales tax revenues. These
financial statements reflect the turnback payments through July 2023;
• Regional arterial expenditures represent expenditures for the highway and regional
arterial program administered by the Coachella Valley Association of Governments
(CVAG). CVAG requests reimbursements from the Commission based on available funds
and sufficient budget authority;
• Debt service principal payments are made annually on June 1, while debt service
interest payments are made semiannually on December 1 and June 1. In accordance
with the applicable accounting standards related to the Enterprise funds, both the RCTC
91 and 15 Express Lanes Enterprise funds record accrued and compounded interest on
its related debt such as the RCTC 91 Express Lanes 2021 Toll Refunding Bonds and
2013 Toll Revenue Bonds, Series B capital appreciation bonds for the 91 Project as well
as the Transportation Infrastructure Finance and Innovation Act (TIFIA) loan for the
15 Express Lanes project. Therefore, $L4 million of the $7 million interest cost through
the first quarter will not be paid in the current year for the RCTC 91 and
15 Express Lanes Enterprise funds and therefore, not included in the FY 2023/24 budget;
• Capital outlay expenditures are under budget due to unused budget authority for office
improvements, property improvements for station rehabilitation, toll operations
equipment, and Commission network, hardware, and software improvements;
• Depreciation is recorded as part of the accrual adjustments in the RCTC 91 and
15 Express Lanes Enterprise funds accounting records; however, depreciation is
considered a non -cash transaction and not included in the FY 2023/24 budget; and
• Transfers in and out include the first quarter administrative cost allocation process,
Measure A Sales Tax Bonds debt funding, and LTF disbursements for planning and
programming activities.
FISCAL IMPACT:
This is an information item. There is no fiscal impact.
Attachments:
1) Quarterly Project Status — September 2023
2) Quarterly Financial Statements — September 2023
Agenda Item 6C
414
ATTACHMENT 1
RIVERSIDE COUNTY TRANSPORTATION COMMISSION
QUARTERLY PROJECT STATUS
lsf QUARTER
FOR THREE MONTHS ENDED 9/30/2023
Project Description
FY 2023/24
through 15t
Quarter
Budget
Expenditures
through 1st
Quarter
Actuals
Project Status
91 Express Lanes (P009103 & P009104)
These projects provide repair and rehabilitation of SR -91 general
purpose and express lanes, as well as the implementation of a new
back -office system. The FY2023/24 budget amount is $8,516,200.
1-15 Express Lanes Southern Extension (P003044)
The project will add express lanes between SR -74 and Cajalco
Road. The estimated project cost is $544 million with the Project
Approval and Environmental Document (PA/ED) phase of work
funded by federal Congestion Mitigation and Air Quality (CMAQ)
funds and Measure A. The FY 2023/24 budget amount is
$13,439,000.
15/91 Express Lanes Connector (P003039)
The 15/91 Express Lane Connector (ELC) project constructs an
express lanes median direct connector from southbound 1-15 to
westbound SR -91 and from eastbound SR -91 to northbound 1-15 in
the city of Corona. The project also adds tolled express lanes in each
direction of 1-15 from the 15/91 ELC to Hidden Valley Parkway; adds
a tolled express lane in each direction of SR -91 from east of Lincoln
Avenue to the 15/91 ELC; extends the tolled express lane along
eastbound SR -91 from 1-15 to west of Promenade Avenue; and
extends an eastbound auxiliary lane along SR -91 from west of 1-15
to west of Promenade Avenue. The project also includes the addition
of a toll collection system infrastructure along 1-15 and SR -91. The
estimated project cost is $270 million and the project is partially
funded by state funds allocated under Senate Bill (SB) 132
legislation. The connector is expected to open to traffic in 2023. The
FY 2023/24 budget amount is $38,389,000.
$2,181,550
2,041,950
8,835,550
$1,240,638
The under run of the FY 2023/24 budget at the first quarter is
due to lower than anticipated expended costs for Phase 2
corridor improvements and associated project construction
management ($0.2 million) and back -office system
implementation ($0.6 million).
366,459 The under run of the FY 2023/24 budget at the first quarter is
due to lower than anticipated expended costs for the
preliminary engineering and environmental document
contract ($1.0 million), program management, staff labor,
legal, and other professional services ($0.6 million).
3,320,578
The under run of the FY 2023/24 budget at the first quarter is
due to delayed invoicing from the design builder ($4.3 million)
and lower than anticipated expended costs from the project
construction management contract ($0.8 million), and toll
marketing ($0.2 million).
415
RIVERSIDE COUNTY TRANSPORTATION COMMISSION
QUARTERLY PROJECT STATUS
1st QUARTER
FOR THREE MONTHS ENDED 9/30/2023
Project Description
FY 2023/24
through 15t
Quarter
Budget
Expenditures
through 1st
Quarter
Actuals
Project Status
Mid County Parkway (MCP) (P002302, P002317, P002320,
P002324, & P002328)
The environmental document fora new corridor from 1-215 to SR -79
was approved in April 2015. The first design package is under
construction. Construction of this new facility will be completed over
many years as funding becomes available; the total project cost is
estimated at $1.3 to $2.1 billion. The FY 2023/24 budget amount
is $33,694,700.
71/91 Connector Project (P003021)
The project includes ROW acquisition, utility relocation, and
environmental revalidation work for improvements to the 71/91
connector. The estimated project cost is $118 million. The FY
2023/24 budget amount is $66,221,900.
Smart Freeways (P003051)
The project includes environmental clearance, design, and
commence construction of a pilot project to install a smart freeway
system on northbound 1-15 in the city of Temecula. The FY 2023/24
budget amount is $16,180,000.
2,493,950
11,060,475
1,040,000
675,917 The under run of the FY 2023/24 budget at the first quarter is
primarily due to the following for each project:
• MCP: The minimal under run is due to right of way (ROW)
acquisition and ROW support ($0.05 million).
• MCP I-215/Placentia Interchange: The over run for this
project was due to construction and construction
management ($0.07 million), that was slightly offset by the
under runs in construction support services ($0.03 million)
and general legal services ($0.03 million).
• MCP Mitigation: The first year of plant establishment was
completed at the beginning of the third quarter in FY
2020/21 and the under run in the first quarter of FY
2023/24 was due to mitigation property monitoring ($0.5
million).
• MCP2 and MCP3: The Commission approved the shift
from MCP2 to MCP3 at the May 2022 Commission
meeting. The under run was due to unused ROW
acquisition/support services on MCP2 ($0.06 million) and
final design on MCP3 ($0.9 million).
8,237,669
(284,228)
The under run of the FY 2023/24 budget at the first quarter is
due to construction ($1.8 million), construction management
services ($0.7 million), less than anticipated costs for
construction support ($0.2 million) and program management
($0.2 million).
The under run of the FY 2023/24 budget at the first quarter is
due to FY 2022/23 accrual reversal, delayed invoicing from
the preliminary design firm ($0.5 million), engineering &
environmental support services ($0.4 million), and lower than
expected costs for construction management ($0.4 million).
Construction is not scheduled to commence until the second
half of FY 2023/24.
416
RIVERSIDE COUNTY TRANSPORTATION COMMISSION
QUARTERLY PROJECT STATUS
1st QUARTER
FOR THREE MONTHS ENDED 9/30/2023
Project Description
FY 2023/24
through 15t
Quarter
Budget
Expenditures
through 1st
Quarter
Actuals
Project Status
Santa Ana River Trail Extension (SART) (P007201 & P007202)
The Commission provides support to the Riverside County Regional
Park and Open Space District (District) for the projects under a
cooperative planning and development agreement. The District is
the lead agency for environmental compliance for NEPA and CEQA,
and the Commission is responsible for project oversight and
approval, final design, and construction. The projects are a joint
effort with several public and private agencies including the county
of Orange and the United States Army Corps of Engineers. The
District is responsible for 100% of costs. The FY 2023/24 budget
amount is $6,756,700.
Moreno Valley -March Field station upgrade (P004026)
The project will remove and replace approximately 2.5 miles of
existing rail and wood ties with new rail and concrete ties, remove /
replace / regrade track ballast, improve track drainage, install new
track signals and Positive Train Control system, connect to existing
signals and communication systems, build a new second passenger
loading platform, extend the existing passenger loading platform to
current Metrolink station standards, and perform other
improvements necessary to bring the tracks into compliance with
Metrolink standards. The FY 2023/24 budget amount is
$17,610,100.
1,623,000
3,199,725
177,222 The under run of the FY 2023/24 budget at the first quarter is
due to final design ($0.1 million) and preliminary engineering
($0.05 million) for SART 1. Additionally, the underrun in SART
2 is due to ROW acquisition and support ($1.1 million) and
final design ($0.1 million).
1,301,132 The under run of the FY 2023/24 budget at the first quarter is
due to construction ($0.9 million), construction support ($0.8
million) and construction management ($0.1 million).
This list discusses the significant capital projects (i.e., total budgeted costs in excess of $5 million) and related status. Capital project expenditures are generally affected
by lags in invoices submitted by contractors and consultants, as well as issues encountered during certain phases of the projects. The capital projects budgets tend to be
based on aggressive project schedules.
417
ATTACHMNENT 2
RIVERSIDE COUNTY TRANSPORTATION COMMISSION
QUARTERLY BUDGET TO ACTUAL
1ST QUARTER
FOR THREE MONTHS ENDED 9/30/2023
FY 2023/24 1 ST QUARTER REMAINING PERCENT
BUDGET ACTUAL BALANCE UTILIZATION
Revenues
Sales tax $ 473,394,500 $ 33,395,842 $ 439,998,658 7%
Federal reimbursements 89,308,100 (985,770) 90,293,870 -1%
State reimbursements 82,343,100 (5,461,744) 87,804,844 -7%
Local reimbursements 30,075,000 2,745,999 27,329,001 9%
Transportation Uniform Mitigation Fee 31,000,000 (481,189) 31,481,189 -2%
Tolls, penalties, and fees 97,989,000 31,135,126 66,853,874 32%
Other revenues 723,500 302,465 421,035 42%
Investment income 13,242,700 2,673,834 10,568,866 20%
Total revenues 818,075,900 63,324,563 754,751,337 8%
Expenditures/Expenses
Salaries and benefits 17,563,900 3,547,840 14,016,060 20%
Professional and support
Professional services 24,592,600 1,709,065 22,883,535 7%
Support costs 21,582,000 5,014,680 16,567,320 23%
Total Professional and support costs 46,174,600 6,723,745 39,450,855 15%
Projects and operations
Program operations 49,525,000 3,362,538 46,162,462 7%
Engineering 34,591,600 242,616 34,348,984 1%
Construction 272,322,900 5,200,463 267,122,437 2%
Design Build 37,161,000 2,762,020 34,398,980 7%
Right of way/land 45,974,200 (17,082,897) 63,057,097 -37%
Operating and capital disbursements 252,272,300 45,887,885 206,384,415 18%
Special studies 14,890,000 26,343 14,863,657 0%
Local streets and roads 84,545,100 6,557,177 77,987,923 8%
Regional arterials 30,000,000 (2,814,996) 32,814,996 -9%
Total projects and operations 821,282,100 44,141,149 777,140,951 5%
Debt service
Principal 32,635,000 - 32,635,000 N/A
Interest 58,781,200 7,010,087 51,771,113 12%
Total debt service 91,416,200 7,010,087 84,406,1 13 8%
Capital outlay
Depreciation
Total Expenditures/Expenses
7,842,200
984,279,000
1,689,733
4,724,773
6,152,467
(4,724,773)
22%
N/A
67,837,327 916,441,673 7%
Excess revenues over (under) expenditures/expenses (166,203,100) (4,512,764) (161,690,336) 3%
Other financing sources/(uses)
Transfer in 212,463,600 37,826,206 174,637,394 18%
Transfer out (212,463,600) (37,826,206) (174,637,394) 18%
Total financing sources/(uses) - - N/A
Net change in fund balances (166,203,100) (4,512,764) 161,690,336 3%
Fund balance July 1, 2023 1,382,220,300 1,200,727,959 (181,492,341) 87%
Fund balance September 30, 2023 $ 1,216,017,200 $ 1,196,215,195 $ (19,802,005) 98%
418
RIVERSIDE COUNTY TRANSPORTATION COMMISSION
QUARTERLY BUDGET TO ACTUAL BY FUND
1ST QUARTER
FOR THREE MONTHS ENDED 9/30/2023
SPECIAL REVENUE FUNDS
MEASURE A SALES TAX TRANSPORTATION DEVELOPMENT ACT
GENERAL FUND
FSP/ COACHELLA PALO VERDE LOCAL TRANSPORTATION STATE TRANSIT TRANSPORTATION UNIFORM COACHELLA OTHER AGENCY REGIONAL
SAFE WESTERN COUNTY VALLEY VALLEY FUND ASSISTANCE STATE OF GOOD REPAIR MITIGATION FEE (TUMF) VALLEY RAIL
PROJECTS CONSERVATION
58132
Revenues
Sales tax $ - $ - $ 17.367,972 $ 4,172,015 $ 83,004 $
Federal reimbursements (1,948,629) - 962,859 State reimbursements (43,238) 560,409 (4,178,924) -
Local reimbursements 20 434 635.219 - -
Transportation Uniform Mitigation Fee - -
Tolls, penalties, and fees - - - - Other revenues - - 271,220 - Investment income 214,023 39,798 -
Total revenues (1,991,847) 560,843 15.272,369 4,211,813 83,004
11,772,851 $ $
79,597
79,597 (143,169)
(143,169)
$ - $
(250,000)
(481,189)
6,000
79,597
$ - $
177,235 1,933,091
(1,406,822)
Expenditures/Expenses
Salaries and benefits 1,701,988 24,153 630,483 -
Professional and support
Professional services 451,227 (36,165) 462,659 1,468
Support costs 1,411,771 12,618 940,260 -
11,772,851
2,937 (25,000)
(645,592) - 177,235 1,933,091 (1,406,822)
34,779 11,089 17,005 679,792 82,127
42,903 16,796 1,687 510,438 3,497
232 692 (13) 265,145 1,928
Total Professional and support costs 1,862,998 (23,547) 1,402,919 1,468
Projects and operations
Program operations
Engineering
Construction
Design Build
Right of way/land
Operating and capital disbursements
Special studies
Local sheetsand roads.
Regional arterials
Total projects and operations
Debt service
Principal
Interest
Total debt service
9,644 681,251 1,401,805
260,398
- 6.420.689
- (647,243)
- (17,011,219)
36,852 - 247,336
26,343 -
5,013,968
2,937 (25,000) 43,135 17,488 1,674 775,583 5,425
35.032 1,836 24,460 6,971 81,750
- - (135.314) 117,532
- - - - (450.106) - - (1,183,056)
- - - - - - - - - 2,880,135
(288,505) - 16,994 152,458 47,375
2,068,750 - 44,572,074 (946,528) (90,599) - -
1,460,205 83,004
(2,814,996)
72,839 681,251 (4,314,266) 713,959 83,004 44,572,074 (946,528) (90,599) (838,893) 1,836 158,986 159,429 1,826,204
Capital outlay 13,853 369 1,675,511
Depreciation - -
Total Expenditures/Expenses 3,651,678 682,226 (605,353) 715,427 83,004
44,572,074 (943,591) (115,599) (760,979) 30,413 177,665 1,614,804 1,913,756
Excess revenues over (under) (5,643,525) (121,383) 15,877,722 3,496,386
Other financing sources/(uses)
Transfer in
Transfer out
Total financing sources/(uses)
Net change in fund balances
Fund balance July 1, 2023
Fund balance September 30, 2023
15,275,258 - 1;912;772
(258,500) (66,500) (18,458,394) (156,900) (6,500)
15,016,758 (66,500) (16,545,622) (156,900) (6,500)
(32,799,223) 1,023,188 (27,570) 115,387 (30,413) (430) 318,287 (3,320,578)
(12,758,758)
(12,758,758)
(6,500)
(6,500)
13,634 - 3,320,578
(21,200) (5,300) - (318,900)
(7,566) (5,300) - (318,900) 3,320,578
9,373,233 (187,883) (667,900) 3,339,486 (6,500)
37,100,151 13,328,700 438,154,128 96,210,303 $ 46,473,384 $ 13,140,817 $ 437,486228 $ 99,549,789 $ (6,500) $
(45,557,981) 1,016,688 (27,570) 107,821 (35,713) (430) (613)
336,576,925 142,158,549 12,661,636 148,270,737 2,257,390 28,174 (2,362) 1,003,665
291,018,944 $ 143,175,237 $ 12,634,066 $ 148,378,558 $ 2,221,677 $ 27,744 $ (2,975) $ 1,003,665
419
RIVERSIDE COUNTY TRANSPORTATION COMMISSION
QUARTERLY BUDGET TO ACTUAL BY FUND
1ST QUARTER
FOR THREE MONTHS ENDED 9/30/2023
ENTERPRISE FUND CAPITAL PROJECTS FUNDS
Revenues
Sales tax
Federal reimbursements
State reimbursements
Local reimbursements
Transportation Uniform Mitigation Fee
Tots, penalties, and fees
Other revenues
Investment income
Total revenues
Expenditures/Expenses
Salaries and benefits
Professional and support
Professional services
Support costs
Total Professional and support costs
15 EXPRESS LANES 91 EXPRESS LANES COMMERCIAL PAPER
SALES TAX
BONDS
DEBT SERVICE COMBINED TOTAL
10,514,739
25,245
893,273
11,433,257 21,466.766
20,620,387
846,379
$ - $ - $ - $ 33,395,842
- - (985,770)
(5,461,744)
- - - 2,745,999
(481,189)
31,135,126
302,465
201,295 228,530 91,342 2,673,834
201,295 228,530 91,342 63,324,563
107,666 258,758 - - - 3,547,840
99,270
1,151,818
1,251,088 1,407,577 - - - 6,723,745
177,348
1,230,229
1,709,065
5,014,680
Projects and operations
Program operations 1,074,491 45,298 - - - 3,362,538
Engineering - - - - - 242,616
Construction - 412,936 - - - 5,200,463
Design Build - 529,128 - - - 2,762,020
Right of way/land - - - - - (17,082,897)
Operating and capital disbursements - - - - - 45,887,885
Special studies - - - - - 26,343
Local sheetsand roads. - - - - - 6,557,177
Regional arterials - - - - - (2,814,996)
Total projects and operations 1,074,491 987,362 - - - 44,141,149
Debt service
Principal
Interest
Total debt service
Capital outlay
Depreciation
Total Expenditures/Expenses
Excess revenues over (under)
771,528 6,238,559 - - - 7,010,087
771,528 6,238,559 - - - 7,010,087
1,689,733
3,117,766 1,607,007 - - - 4,724,773
6,322,539 10,499,263 - - - 67,837,327
5,110,718 10,967,503 201,295 228,530 91,342 (4,512,764)
Other financing sources/(uses)
Transfer in 204 - - - 17,303,760 37,826,206
Transfer out (114,600) (3,741,178) - (1,912,976) - (37,826,206)
Total financing sources/(uses) (114,396) (3,741,178) - (1,912,976) 17,303,760 -
Net change in fund balances
Fund balance July 1, 2023
Fund balance September 30, 2023
4,996,322
262,717,804
267,714,126
7,226,325
(333,152,076)
(325,925,751)
201,295
13,392,732
13,594,027
(1,684,446)
18,149,828
16,465,382
17,395,102 (4,512,764)
11,871,675 1,200.727,959
29,266,777 $ 1,196,215,195
420
AGENDA ITEM 60
RIVERSIDE COUNTY TRANSPORTATION COMMISSION
DATE:
January 10, 2024
TO:
Riverside County Transportation Commission
FROM:
Megan Kavand, Senior Financial Analyst
Sergio Vidal, Chief Financial Officer
THROUGH:
Anne Mayer, Executive Director
SUBJECT:
Monthly Investment Report
STAFF RECOMMENDATION:
This item is for the Commission to:
1) Receive and file the Monthly Investment Report for the month ended November 30, 2023.
BACKGROUND INFORMATION:
The Commission's investment reports have generally reflected investments primarily
concentrated in the Riverside County Pooled Investment Fund as well as investments in mutual
funds for sales tax revenue bonds debt service payments.
As a result of significant project financings such as the State Route 91 Corridor Improvement
Project (91 Project or 91 CIP) and the Interstate 15 Express Lanes Project (1-15 ELP), the
Commission engaged MetLife Investment Management, LLC, formerly Logan Circle Partners, L.P.
(MetLife), as the investment manager for the bond proceeds and other required funds.
Additionally, the Commission engaged Payden & Rygel Investment Management (Payden &
Rygel) to make specific investments for Commission operating funds. The Commission approved
initial agreements with the investment managers in May 2013 following a competitive
procurement and has extended the agreements through the annual recurring contracts process.
MetLife invested the debt proceeds and subsequent other required contributions for the 91
Project and 1-15 ELP in separate accounts of the Short -Term Actively Managed Program (STAMP).
The Commission completed the 91 Project financing in 2013, the 1-15 ELP and 91 Project
completion financing (2017 Financing) in July 2017 and the 2021 91 Project refinancing
(2021 Financing) in November 2021. Consistent with financing expectations, the Commission
expended all 91 Project debt proceeds and equity contributions, except for the toll revenue
bonds debt service reserve, and subsequent to commencement of operations, established other
required accounts. The Commission continues to expend the 2017 Financing bond proceeds on
the 1-15 ELP and funded required reserve accounts.
Agenda Item 6D
421
The monthly investment report for November 2023, as required by state law and Commission
policy, reflects the investment activities resulting from the 91 Project,
2017 Financing, 2021 Financing and available operating cash. As of November 30, 2023, the
Commission's cash and investments were comprised of the following:
CASH AND INVESTMENTS PORTFOLIO
AMOUNTS 1
Operating
Trust
Commission -managed
STAMP for 91 CIP
STAMP for 2017 Financing
Total
Note:1 Unreconciled and unaudited
$ 845,532,820
298,065,346
237,652,793
58,951,595
29,930,430
$ 1,470,132,984
As of November 30, 2023, the Commission's cash and investments are in compliance with both
the Commission's investment policy adopted on November 11, 2023, and permitted investments
described in the indenture for the Commission's sales tax revenue bonds and the master
indentures for the Commission's toll revenue bonds. Additionally, the Commission has adequate
cash flows for the next six months.
FISCAL IMPACT:
This is an information item. There is no fiscal impact.
Attachment: Investment Portfolio Report
Agenda Item 6D
422
Riverside County Transportation Commission
Investment Portfolio Report
Period Ended: November 30, 2023
OPERATING FUNDS
City National Bank Deposits
County Treasurer's Pooled Investment Fund
Subtotal Operating Funds
FUNDS HELD IN TRUST
County Treasurer's Pooled Investment Fund:
Local Transportation Fund
Subtotal Funds Held in Trust
COMMISSION MANAGED PORTFOLIO
US Bank Payden & Rygel Operating
First American Government Obligation Fund
Subtotal Commission Managed Portfolio
STAMP PORTFOLIO for 91 CIP
2013 Series A & Series B Reserve Fund
2021 Series B Reserve Fund
2021 Series C Reserve Fund
Subtotal STAMP Portfolio - 91 CIP
STAMP PORTFOLIO for 2017 Financing
Sales Tax 115 ELP Project Revenue Fund
Ramp Up Fund
Subtotal STAMP Portfolio - 2017 Financing
TOTAL All Cash and Investments
Notes:
' Unreconciled and unaudited
STATEMENT
BALANCE
10,483,087
835,049,733
FINANCIAL
INSTUTION
STATEMENTS
RATING
MOODYS /
S&P
845,532,820
City National Bank Available upon request A3/BBB+
County Treasurer Available upon request
298,065,346 County Treasurer Available upon request
298,065,346
55,552,263
182,100,530
237,652,793
12,849,459
38,359,109
7,743,028
58,951,595
14,143,997
15,786,433
29,930,430
$ 1,470,132,984
US Bank
US Bank
US Bank
US Bank
US Bank
US Bank
US Bank
Available upon request
Available upon request
Available upon request
Available upon request
Available upon request
Available upon request
Available upon request
$900,000,000
$900,000,000
$700,000,000
$600,000,000
$500,000,000
$400,000,000
$300,000,000
$200,000,000
$100,000,000
N/A
COUPON
RATE
N/A
N/A
Nature of Investments
• STAMP Portfolio for 91 CIP Reserve - 0.87%
PAR
VALUE
• STAMP Portfolio for 91 CIP Residual Fund -2.61%
PURCHASE MATURITY YIELD TO
DATE DATE MATURITY
• STAMP Portfolio for 91 CIP TIFIA Reserve Fund - 0.53%
• STAMP Portfolio for 2017 Financing 115 ELP Project Revenue Fund
- 0.96%
• STAMP Portfolio for 2017 Financing Ramp Up Fund - 1.07%
• Commission Managed Portfolio -16.17%
• Trust Funds - 20.27%
• Operating Funds - 57.51%
Available upon request
Available upon request
Available upon request
Available upon request
Available upon request
Available upon request
Available upon request
Available upon request
N/A
N/A
PURCHASE MARKET UNREALIZED
COST VALUE GAIN (LOSS)
423
AGENDA ITEM 6E
RIVERSIDE COUNTY TRANSPORTATION COMMISSION
DATE:
January 10, 2024
TO:
Riverside County Transportation Commission
FROM:
Gary Ratliff, Facilities Administrator
Erik Galloway, Project Delivery Director
THROUGH:
Anne Mayer, Executive Director
SUBJECT:
Agreements for On -Call Maintenance and Repair Services for the Commuter
Rail Stations and Toll Facilities
STAFF RECOMMENDATION:
This item is for the Commission to:
1) Award the following agreements to provide on -call maintenance and repair services for
the commuter rail stations and toll facilities for a three-year term, with a one-year option
to extend the agreement, for a total aggregate amount not to exceed $16,850,000
a) Agreement No. 24-24-034-00 to 4D Surface Management;
b) Agreement No. 24-24-049-00 to Joshua Grading & Excavating;
c) Agreement No. 24-24-050-00 to Real Estate Consulting & Services
2) Authorize the Chair or Executive Director, pursuant to legal counsel review, to execute
the agreements on behalf of the Commission; and
3) Authorize the Executive Director, or designee, to execute task orders awarded to the
contractors under the terms of the agreements.
BACKGROUND INFORMATION:
The Commission owns and operates nine commuter rail stations, (Riverside Downtown, Jurupa
Valley-Pedley, Riverside -La Sierra Metrolink, Riverside -La Sierra RTA, Coron-West, Corona -North
Main, Riverside- Hunter Park/UCR, Moreno Valley/March Field, Perris -Downtown, and Perris
South), Operational Control Center for security operations, and two bus depots located at the
La Sierra and Perris -Downtown Stations. Station maintenance, repair, and construction
improvement services are essential to preserve and maintain the Commission's property
investments as well as provide safe, operational, and functional facilities for the train commuters.
On -call maintenance services efficiently and effectively respond to building repairs, emergencies,
and safety measures generally related to construction and preservation of pavement surfaces,
gates and fencing, safety rail, pathways, shelters, and structures.
As an established toll operator for the RCTC 91 Express Lanes and the 15 Express Lanes, the
Commission owns five toll facilities, consisting of a warehouse/maintenance building and two
Agenda Item 6E
424
adjacent office buildings for toll business operations. Additionally, there are two utility buildings
located within the RCTC 91 Express Lanes. Each of these facilities requires routine maintenance,
inspection, and repair services to maintain and preserve the Commission's property and provide
toll patrons services and staff a base of operations.
The 17 Commission owned and operated facilities require an on -call certified licensed
construction contractor/contractors to provide maintenance, repair, and construction services.
Maintenance services are essential for day-to-day operations of these facilities, safety and
security of patrons, employees, and contracted services: as well as persevering and maintaining
Commission property.
Pricing for on -call maintenance, repair and station construction services of Commission owned
facilities will be based upon fixed labor rates and pre -established mark-up on material. To
maximize competitive pricing and the sizable and varied workload, staff recommends the
establishment on an on -call bench of three qualified contractors. The competitive task order
format ensures that the Commission is getting a fair and reasonable price for services. Facility
maintenance and repair emergencies will be handled on a rotation and availability of vendor
response to individual incidents. Pricing of emergency event will be validated with contract rates
and current industry cost.
Since 2016, staff has used state and federal grant funds whenever possible to upgrade, replace
and improve infrastructure and preserve systems throughout station properties. These grant
funds have allowed staff to enhance station amenities, ADA access improvements and current
standards, bicycle improvement, new asphalt and concrete parking lots, new security fencing,
new shelters, elevator upgrades, new canopies, replacement of pathways, surface treatments,
and new signage. Utilizing these grant funds has reduced maintenance and repair cost, preserved
Commission property, reduced tort liability of properties, and extended service life of inventory.
Implementing planned maintenance construction projects and maintenance strategies has
reduced Measure A expenditures.
Staff continues to plan and identify upgrades, improvements, and replacement of station
inventory that grant funds can be utilized for, thus reducing maintenance and operational cost.
Upgrades will be funded by state and federal sources as available. Upgrades and improvements
will be contingent on review and approval by the Project Delivery Director and lowest proposal
price of on -call bench contractors. A task order will be issued for each project and coded to
specific federal or state grant accounts as applicable.
Procurement Process
Staff determined the weighted factor method of source selection to be the most appropriate for
this procurement, as it allows the Commission to identify the most advantageous proposals with
price and other factors considered. Non -price factors include elements such as qualifications of
firm, personnel, and the ability to respond to the Commission's needs for on -call maintenance
Agenda Item 6E
425
and repair services as set forth under the terms of the Request for Proposals (RFP)
No. 24-24-034-00.
RFP No. 24-24-0034-00 for on -call maintenance and repair services was released by staff on
October 5, 2023. The RFP was posted on the Commission's PlanetBids website, which is
accessible through the Commission's website. Through PlanetBids, 21 firms downloaded the
RFP; 11 of these firms are located in Riverside County. Staff responded to all questions submitted
by potential proposers prior to the October 26, 2023, clarification deadline date. Five firms -
4D Surface Management, Inc. (Yucaipa); Joshua Grading & Excavating, Inc. (Phelan); MBE
Construction (Beaumont); Real Estate Consulting & Services, Inc. (Lake Elsinore), and D'ybanag
Construction Company (Perris) — submitted responsive and responsible proposals prior to the
submittal deadline on November 14, 2023. Utilizing the evaluation criteria set forth in the RFP,
all proposals were evaluated and scored by an evaluation committee comprised of Commission
and Bechtel staff.
As a result of the evaluation committee's assessment of the written proposals, the evaluation
committee determined three firms to be qualified firms to provide on -call maintenance and
repair services. The evaluation committee recommends contract awards to these three firms for
a three-year term, with a one-year option to extend the agreement, for a total aggregate amount
not to exceed $16,850,000 of which $850,000 dollars for routine services and a possible of
$16 million dollars for anticipated projects over the four-year contract period.
A summary of the proposed costs submitted with the written proposals and the total evaluation
score rankings following the evaluation are summarized below:
Contractor
4D Surface Management
Joshua Grading &
Excavating
Real Estate Consulting &
Services
Proposed Cost
First 3 Years
Option Year
(4th Year)
Total .111
$2,468,808
$922,512
$3,391,320
Total
Evaluation
Score
Rank
$2,953,680
6.
$1,117,468
$4,071,148
3
$1,544,640
$633,720
$2,178,360
The multiple award, on -call, indefinite delivery/indefinite quantity task order type contracts do
not guarantee work to any of the awardees; therefore, no funds are guaranteed to any
contractor. Services under the task order type contracts shall be competitively solicited on an
as -needed basis amongst the pre -qualified contractors pursuant to a task order request for bid
process. The pre -qualified contractors will be selected for specific tasks based on qualification
information contained in their proposals and/or competitive fee proposals for the specific tasks.
If the pre -qualified contractor's bid is selected for a specific task, the Commission shall issue a
purchase order for the services. The task order request for bid process ensures the Commission
is competitively bidding the services to the pre -qualified contractors; and the Commission is
Agenda Item 6E
426
establishing a fair and reasonable price for each specific task. The contracts include a statement
of services that include a non -exhaustive list of tasks that the contractor may be requested to
provide at rail stations and toll facilities. The statement of services also outlines requirements of
the contractors for performing the work pertaining to hours during which the maintenance shall
be performed, storm water pollution prevention, and use of chemicals.
The Commission's model on -call professional services agreement will be entered into with each
consultant firm, pursuant to legal counsel review. Staff oversight of the contracts and task orders
will maximize the effectiveness of the consultants and minimize costs to the Commission.
Financial
Information
In Fiscal Year Budget:
Year:
FY 2023/24
FY 2024/25+
Amount:
$ 3,500,000
$ $13,350,000
Source of Funds:
2009
Revenues,
Transit
FEMA
Measure
State
Administration
Funds
A Western
of Good
County Rail, Toll
Repair, Federal
Section 5307 grant,
Budget Adjustment:
No
GL/Project Accounting No.:
244001-733XX-00000-0000
244002-733XX-00000-0000
244003-733XX-00000-0000
244004-733XX-00000-0000
244006-733XX-00000-0000
244010-7330X-00000-0000
244021-7330X-00000-0000
244022-733XX-00000-0000
244024-733XX-00000-0000
004011-90701-00000-0000
001599-733XX-00000-0000
009199-733XX-00000-0000
265-24-73301
265-24-73301
265-24-73301
265-24-73301
265-24-73301
265-24-73301
265-24-73301
265-24-73301
265-24-73301
265-24-90501
515-31-73301
591-31-73301
Fiscal Procedures Approved:
/)
/
Date:
12/12/2023
Attachments:
1) Draft Agreement No. 24-24-034-00 to 4D Surface Management, Inc.
2) Draft Agreement No. 24-24-049-00 to Joshua Grading & Excavating, Inc.
3) Draft Agreement No. 24-24-050-00 to Real Estate Consulting & Services.
Agenda Item 6E
427
ATTACHMENT 1
Agreement 24-24-034-00
RIVERSIDE COUNTY TRANSPORTATION COMMISSION
ON -CALL
MAINTENANCE AND REPAIR SERVICES AGREEMENT
1. PARTIES AND DATE.
This Agreement is made and entered into this day of , 2024 by and
between the Riverside County Transportation Commission ("Commission") and 4D Surface
Management, Inc., a Corporation, with its principal place of business at P.O. Box 123, Yucaipa,
CA 92501 ("Contractor"). Commission and Contractor are sometimes individually referred to as
"Party" and collectively as "Parties" in this Agreement.
2. RECITALS.
2.1 Commission is the Transportation Commission for the County of
Riverside and organized under the laws of the State of California with the power to contract for
services necessary to achieve its purpose.
2.2 Commission owns and operates nine (9) commuter rail stations, one (1)
security command center, one (1) transit center, and five (5) toll facilities serving Riverside
County, the addresses and descriptions of which are set forth in Exhibit "A", attached hereto and
incorporated herein by reference ("Commuter Rail Stations and Toll Facilities").
2.3 On or about October 5, 2023, Commission issued a Request for Proposals
No. 24-24-034-00 ("RFP"), pursuant to which Commission sought proposals for on -call
maintenance and repair services for the Commuter Rail Stations and Toll Facilities.
2.4 Contractor desires to perform and assume responsibility for the provision
of on -call maintenance and repair services required by Commission on the terms and conditions
set forth in this Agreement and in the task order(s) to be solicited, awarded and authorized by
Commission Purchase Orders as further described in this Agreement ("Task Order").
2.5 The work generally includes the maintenance and repair of the Commuter
Rail Stations and Toll Facilities. Contractor represents that it is a professional Contractor,
experienced in providing on -call maintenance and repair services to public clients, and is familiar
with the plans of Commission.
2.6 Commission desires to engage Contractor to render on -call maintenance
and repair services for the Commuter Rail Stations and Toll Facilities. On -call maintenance and
repair services shall be generally as set forth in Exhibit "A", attached hereto and incorporated
herein by reference. On -call maintenance and repair services shall be ordered by Task Order(s)
to be issued pursuant to this Agreement for future projects as set forth herein. The services set
17336.00600\32785614.1
428
forth in Exhibit "A" and each individual project ordered under a Task Order shall be referred to,
herein, collectively, as the "Project".
2.7 Services procured under a Task Order may be funded, in whole or in part,
with state and/or federal funds. Contractor shall comply with all applicable funding
requirements.
3. TERMS.
3.1 Scope of Services and Term.
3.1.1 General Scope of Services. Contractor promises and agrees to furnish to
Commission all labor materials, tools, equipment, services, and incidental and customary work,
as necessary, to fully and adequately provide the on -call maintenance and repair services for the
Commuter Rail Stations and Toll Facilities required by Commission, as shall be generally
described in Exhibit "A" and as more specifically described in each Task Order, collectively
referred to herein as the "Services". On -call Services shall be more particularly described in the
individual Task Orders issued by the Commission's Executive Director or designee.
No Services shall be performed unless authorized by a Commission Purchase
Order for Task Order Services, as further detailed herein. All Services shall be subject to, and
performed in accordance with, this Agreement, the relevant Task Order, the exhibits attached
hereto and incorporated herein by reference, and all applicable local, state and federal laws, rules
and regulations
3.1.2 Term. The term of this Agreement shall be from July 1, 2023 to June 30,
2026, unless earlier terminated as provided herein. Contractor shall complete the Services within
the term of this Agreement, and shall meet any other established schedules and deadlines. The
Parties may, by mutual, written consent, extend the term of this Agreement if necessary to
complete the Services.
3.2 Responsibilities of Contractor.
3.2.1 Control and Payment of Subordinates; Independent Contractor. The
Services shall be performed by Contractor or under its supervision. Contractor will determine
the means, methods and details of performing the Services subject to the requirements of this
Agreement. Commission retains Contractor on an independent contractor basis and not as an
employee. Contractor retains the right to perform similar or different services for others during
the term of this Agreement. Any additional personnel performing the Services under this
Agreement on behalf of Contractor shall also not be employees of Commission and shall at all
times be under Contractor's exclusive direction and control. Contractor shall pay all wages,
salaries, and other amounts due such personnel in connection with their performance of Services
under this Agreement and as required by law. Contractor shall be responsible for all reports and
obligations respecting such additional personnel, including, but not limited to: social security
taxes, income tax withholding, unemployment insurance, disability insurance, and workers'
compensation insurance.
17336.00600\32785614.1 2
429
3.2.2 Task Orders; Commencement and Schedule of Services.
Services under this Agreement shall be competitively solicited amongst
Contractor and the other firms identified in Section 3.3.2 of this Agreement pursuant to a Task
Order request for bid process. If Contractor's Task Order bid is selected for a Project, the
Commission shall issue a Purchase Order for the Services. Contractor's agreement to the final
terms of a proposed Task Order, Commission's issuance of a Purchase Order and Contractor's
commencement of the Services following issuance of the Purchase Order shall indicate the
Parties' agreement to the terms of the relevant Task Order.
Contractor shall commence Services under a Task Order within five (5) days of
receiving a Purchase Order for the Task Order Services from the Commission. Each request for
Task Order bids shall identify the funding source(s) to be used to fund the Services under the
relevant Task Order, and Contractor shall comply with the requirements specified herein, and in
the attached exhibits, applicable to the identified funding source(s).
Contractor represents that it has the professional and technical personnel required
to perform the Services in conformance with such conditions. In order to facilitate Contractor's
conformance with each Schedule, the Commission shall respond to Contractor's submittals in a
timely manner. Upon the Commission's request, Contractor shall provide a more detailed
schedule of anticipated performance to meet the relevant Schedule of Services.
3.2.3 Conformance to Applicable Requirements. All work prepared by
Contractor shall be subject to the approval of Commission.
3.2.4 Commission's Representative. The Commission hereby designates the
Executive Director, or his or her designee, to act as its representative for the performance of this
Agreement ("Commission's Representative"). Commission's Representative shall have the
power to act on behalf of the Commission for all purposes under this Agreement. Contractor
shall not accept direction or orders from any person other than the Commission's Representative
or his or her designee.
3.2.5 Contractor's Representative. Contractor hereby designates Mike Doucette
or his or her designee, to act as its representative for the performance of this Agreement
("Contractor's Representative"). Contractor's Representative shall have full authority to
represent and act on behalf of the Contractor for all purposes under this Agreement. The
Contractor's Representative shall supervise and direct the Services, using his best skill and
attention, and shall be responsible for all means, methods, techniques, sequences and procedures
and for the satisfactory coordination of all portions of the Services under this Agreement.
3.2.6 Coordination of Services. Contractor agrees to work closely with
Commission staff in the performance of Services and shall be available to Commission's staff,
consultants and other staff at all reasonable times.
3.2.7 Standard of Care; Performance of Employees. Contractor shall perform
all Services under this Agreement in a skillful and competent manner, consistent with the
standards generally recognized as being employed by professionals in the same discipline in the
State of California. Contractor represents and maintains that it is skilled in the professional
17336.00600\32785614.1 3
430
calling necessary to perform the Services. Contractor warrants that all employees and
subcontractors shall have sufficient skill and experience to perform the Services assigned to
them. Finally, Contractor represents that it, its employees and subcontractors have all licenses,
permits, qualifications and approvals of whatever nature that are legally required to perform the
Services, and that such licenses and approvals shall be maintained throughout the term of this
Agreement. As provided for in the indemnification provisions of this Agreement, Contractor
shall perform, at its own cost and expense and without reimbursement from the Commission, any
services necessary to correct errors or omissions which are caused by the Contractor's failure to
comply with the standard of care provided for herein. Any employee of the Contractor or its
sub -contractors who is determined by the Commission to be uncooperative, incompetent, a threat
to the adequate or timely completion of the Project, a threat to the safety of persons or property,
or any employee who fails or refuses to perform the Services in a manner acceptable to the
Commission, shall be promptly removed from the Project by the Contractor and shall not be
re-employed to perform any of the Services or to work on the Project.
3.2.8 Period of Performance. Contractor shall perform the Services in strict
accordance with any completion schedule or Project milestones described in each Task Order.
Contractor agrees that if the Services are not completed within the aforementioned performance
time and/or pursuant to any such completion schedule or Project milestones developed pursuant
to provisions of this Agreement and included in any Task Order, it is understood, acknowledged
and agreed that the Commission will suffer damage.
3.2.9 Disputes. Should any dispute arise respecting the true value of any work
done, of any work omitted, or of any extra work which Contractor may be required to do, or
respecting the size of any payment to Contractor during the performance of this Contract,
Contractor shall continue to perform the Work while said dispute is decided by the Commission.
If Contractor disputes the Commission's decision, Contractor shall have such remedies as may
be provided by law.
3.2.10 Laws and Regulations; Employee/Labor Certifications. Contractor shall
keep itself fully informed of and in compliance with all local, state and federal laws, rules and
regulations in any manner affecting the performance of the Project or the Services, including all
Cal/OSHA requirements, and shall give all notices required by law. Contractor shall be liable
for all violations of such laws and regulations in connection with Services. If the Contractor
performs any work knowing it to be contrary to such laws, rules and regulations and without
giving written notice to the Commission, Contractor shall be solely responsible for all costs
arising therefrom. Commission is a public entity of the State of California subject to, among
other rules and regulations, the Public Utilities Code, Public Contract Code, and Labor Code of
the State. It is stipulated and agreed that all provisions of the law applicable to the public
contracts of a county transportation commissions are a part of this Agreement to the same extent
as though set forth herein and will be complied with. These include but are not limited to the
payment of prevailing wages, the stipulation that eight (8) hours' labor shall constitute a legal
day's work and that no worker shall be permitted to work in excess of eight (8) hours during any
one calendar day except as permitted by law. Contractor shall defend, indemnify and hold
Commission, its officials, officers, employees and agents free and harmless, pursuant to the
indemnification provisions of this Agreement, from any claim or liability arising out of any
failure or alleged failure to comply with such laws, rules or regulations.
17336.00600\32785614.1 4
431
3.2.10.1 Employment Eligibility; Contractor. By executing this
Agreement, Contractor verifies that it fully complies with all requirements and restrictions of
state and federal law respecting the employment of undocumented aliens, including, but not
limited to, the Immigration Reform and Control Act of 1986, as may be amended from time to
time. Such requirements and restrictions include, but are not limited to, examination and
retention of documentation confirming the identity and immigration status of each employee of
the Contractor. Contractor also verifies that it has not committed a violation of any such law
within the five (5) years immediately preceding the date of execution of this Agreement, and
shall not violate any such law at any time during the term of the Agreement. Contractor shall
avoid any violation of any such law during the term of this Agreement by participating in an
electronic verification of work authorization program operated by the United States Department
of Homeland Security, by participating in an equivalent federal work authorization program
operated by the United States Department of Homeland Security to verify information of newly
hired employees, or by some other legally acceptable method. Contractor shall maintain records
of each such verification, and shall make them available to the Commission or its representatives
for inspection and copy at any time during normal business hours. The Commission shall not be
responsible for any costs or expenses related to Contractor's compliance with the requirements
provided for in Section 3.2.10 or any of its sub -sections.
3.2.10.2 Employment Eligibility; Subcontractors, Sub -
subcontractors and consultants. To the same extent and under the same conditions as Contractor,
Contractor shall require all of its subcontractors, sub -subcontractors and consultants performing
any work relating to the Project or this Agreement to make the same verifications and comply
with all requirements and restrictions provided for in Section 3.2.10.1.
3.2.10.3 Employment Eligibility; Failure to Comply. Each person
executing this Agreement on behalf of Contractor verifies that they are a duly authorized officer
of Contractor, and understands that any of the following shall be grounds for the Commission to
terminate the Agreement for cause: (1) failure of Contractor or its subcontractors, sub -
subcontractors or consultants to meet any of the requirements provided for in Sections 3.2.10.1
or 3.2.10.2; (2) any misrepresentation or material omission concerning compliance with such
requirements (including in those verifications provided to the Contractor under Section 3.2.10.2);
or (3) failure to immediately remove from the Project any person found not to be in compliance
with such requirements.
3.2.10.4 Labor Certification. By its signature hereunder, Contractor
certifies that it is aware of the provisions of Section 3700 of the California Labor Code which
require every employer to be insured against liability for Workers' Compensation or to undertake
self-insurance in accordance with the provisions of that Code, and agrees to comply with such
provisions before commencing the performance of the Services.
3.2.10.5 Equal Opportunity Employment. Contractor represents that
it is an equal opportunity employer and it shall not discriminate against any subcontractor,
employee or applicant for employment because of race, religion, color, national origin, handicap,
ancestry, sex or age. Such non-discrimination shall include, but not be limited to, all activities
related to initial employment, upgrading, demotion, transfer, recruitment or recruitment
advertising, layoff or termination. Contractor shall also comply with all relevant provisions of
17336.00600\32785614.1 5
432
Commission's Disadvantaged Business Enterprise program, Affirmative Action Plan or other
related programs or guidelines currently in effect or hereinafter enacted.
3.2.10.6 Air Quality. Contractor must fully comply with
all applicable laws, rules and regulations in furnishing or using equipment and/or providing
services, including, but not limited to, emissions limits and permitting requirements imposed by
the California Air Resources Board (CARB). Contractor shall specifically be aware of the
CARB limits and requirements' application to "portable equipment", which definition is
considered by CARB to include any item of equipment with a fuel -powered engine. Contractor
shall indemnify Commission against any fines or penalties imposed by CARB or any other
governmental or regulatory agency for violations of applicable laws, rules and/or regulations by
Contractor, its subcontractors, or others for whom Contractor is responsible under its indemnity
obligations provided for in this Agreement.
3.2.10.7 Water Quality.
(A) Management and Compliance. To the extent applicable,
Contractor's Services must account for, and fully comply with, all local, state and federal laws,
rules and regulations that may impact water quality compliance, including, without limitation, all
applicable provisions of the Federal Water Pollution Control Act (33 U.S.C. §§ 1300); the
California Porter -Cologne Water Quality Control Act (Cal Water Code §§ 13000-14950); laws,
rules and regulations of the Environmental Protection Agency and the State Water Resources
Control Board; the Commission's rules regarding discharges of storm water; and any and all
regulations, policies, or permits issued pursuant to any such authority regulating the discharge of
pollutants, as that term is used in the Porter -Cologne Water Quality Control Act, to any ground
or surface water in the State.
(B) Liability for Non -Compliance. Failure to comply with the
laws, regulations and policies described in this Section is a violation of law that may subject
Contractor or Commission to penalties, fines, or additional regulatory requirements. Contractor
shall defend, indemnify and hold the Commission, its officials, officers, employees, volunteers
and agents free and harmless, pursuant to the indemnification provisions of this Agreement, from
and against any and all fines, penalties, claims or other regulatory requirements imposed as a
result of Contractor's non-compliance with the laws, regulations and policies described in this
Section, unless such non-compliance is the result of the sole established negligence, willful
misconduct or active negligence of the Commission, its officials, officers, agents, employees or
authorized volunteers.
(C) Training. In addition to any other standard of care
requirements set forth in this Agreement, Contractor warrants that all employees and
subcontractors shall have sufficient skill and experience to perform the Services assigned to them
without impacting water quality in violation of the laws, regulations and policies described in
this Section. Contractor further warrants that it, its employees and subcontractors will receive
adequate training, as determined by Commission, regarding the requirements of the laws,
regulations and policies described in this Section as they may relate to the Services provided
under this Agreement. Upon request, Commission will provide Contractor with a list of training
programs that meet the requirements of this paragraph.
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3.2.11 Insurance.
3.2.11.1 Time for Compliance. Contractor shall not commence
work under this Agreement until it has provided evidence satisfactory to the Commission that it
has secured all insurance required under this section, in a form and with insurance companies
acceptable to the Commission. In addition, Contractor shall not allow any subcontractor to
commence work on any subcontract until it has secured all insurance required under this section.
3.2.11.2 Minimum Requirements. Contractor shall, at its expense,
procure and maintain for the duration of the Agreement insurance against claims for injuries to
persons or damages to property which may arise from or in connection with the performance of
the Agreement by the Contractor, its agents, representatives, employees or subcontractors.
Contractor shall also require all of its subcontractors to procure and maintain the same insurance
for the duration of the Agreement. Such insurance shall meet at least the following minimum
levels of coverage:
(A) Minimum Scope of Insurance. Coverage shall be at least as
broad as the latest version of the following: (1) General Liability: Insurance Services Office
Commercial General Liability coverage (occurrence form CG 0001 or exact equivalent); (2)
Automobile Liability: Insurance Services Office Business Auto Coverage (form CA 0001, code 1
(any auto) or exact equivalent); and (3) Workers' Compensation and Employer's Liability:
Workers' Compensation insurance as required by the State of California and Employer's
Liability Insurance.
(B) Minimum Limits of Insurance. Contractor shall maintain
limits no less than: (1) General Liability: $2,000,000 per occurrence for bodily injury, personal
injury and property damage. If Commercial General Liability Insurance or other form with
general aggregate limit is used, either the general aggregate limit shall apply separately to this
Agreement/location or the general aggregate limit shall be twice the required occurrence limit;
(2) Automobile Liability: $1,000,000 per accident for bodily injury and property damage; and (3)
if Contractor has an employees, Workers' Compensation and Employer's Liability: Workers'
Compensation limits as required by the Labor Code of the State of California. Employer's
Practices Liability limits of $1,000,000 per accident.
3.2.11.3 Insurance Endorsements. The insurance policies shall
contain the following provisions, or Contractor shall provide endorsements on forms approved
by the Commission to add the following provisions to the insurance policies:
(A) General Liability.
(i) Commercial General Liability Insurance must
include coverage for (1) bodily Injury and property damage; (2) personal Injury/advertising
Injury; (3) premises/operations liability; (4) products/completed operations liability; (5)
aggregate limits that apply per Project; (6) explosion, collapse and underground (UCX)
exclusion deleted; (7) contractual liability with respect to this Agreement; (8) broad form
property damage; and (9) independent contractors coverage.
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(ii) The policy shall contain no endorsements or
provisions limiting coverage for (1) contractual liability; (2) cross liability exclusion for claims
or suits by one insured against another; or (3) contain any other exclusion contrary to this
Agreement.
(iii) The policy shall give the Commission, its directors,
officials, officers, employees, and agents insured status using ISO endorsement forms 20 10 10
01 and 20 37 10 01, or endorsements providing the exact same coverage.
(iv) The additional insured coverage under the policy
shall be "primary and non-contributory" and will not seek contribution from the Commission's
insurance or self-insurance and shall be at least as broad as CG 20 01 04 13, or endorsements
providing the exact same coverage.
(v) The policy shall not include any restrictions related
to indemnity for work performed within fifty (50) feet of Commission's railroad right-of-
way/tracks.
(B) Automobile Liability. The automobile liability policy shall
be endorsed to state that: (1) the Commission, its directors, officials, officers, employees and
agents shall be covered as additional insureds with respect to the ownership, operation,
maintenance, use, loading or unloading of any auto owned, leased, hired or borrowed by the
Contractor or for which the Contractor is responsible; and (2) the insurance coverage shall be
primary insurance as respects the Commission, its directors, officials, officers, employees and
agents, or if excess, shall stand in an unbroken chain of coverage excess of the Contractor's
scheduled underlying coverage. Any insurance or self-insurance maintained by the Commission,
its directors, officials, officers, employees and agents shall be excess of the Contractor's
insurance and shall not be called upon to contribute with it in any way.
(C) Workers' Compensation and Employers Liability
Coverage.
(i) Contractor certifies that he/she is aware of the
provisions of Section 3700 of the California Labor Code which requires every employer to be
insured against liability for workers' compensation or to undertake self-insurance in accordance
with the provisions of that code, and he/she will comply with such provisions before
commencing work under this Agreement.
(ii) The insurer shall agree to waive all rights of
subrogation against the Commission, its directors, officials, officers, employees and agents for
losses paid under the terms of the insurance policy which arise from work performed by the
Contractor.
(D) Railroad Protective Liability. In addition to the policies
specified above, prior to commencing any Task Order work within (50) feet of Commission's
railroad right-of-way/tracks, Contractor shall acquire and keep in force during the period of such
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work $2,000,000 (combined single limit)/ $6,000,000 (aggregate limit) of railroad protective
liability insurance naming only Commission as the insured.
(E) All Coverages.
(i)
limits set forth hereunder.
Defense costs shall be payable in addition to the
(ii) Requirements of specific coverage or limits
contained in this section are not intended as a limitation on coverage, limits, or other
requirement, or a waiver of any coverage normally provided by any insurance. It shall be a
requirement under this Agreement that any available insurance proceeds broader than or in
excess of the specified minimum insurance coverage requirements and/or limits set forth herein
shall be available to the Commission, its directors, officials, officers, employees and agents as
additional insureds under said policies. Furthermore, the requirements for coverage and limits
shall be (1) the minimum coverage and limits specified in this Agreement; or (2) the broader
coverage and maximum limits of coverage of any insurance policy or proceeds available to the
named insured; whichever is greater.
(iii) The limits of insurance required in this Agreement
may be satisfied by a combination of primary and umbrella or excess insurance. Any umbrella or
excess insurance shall contain or be endorsed to contain a provision that such coverage shall also
apply on a primary and non-contributory basis for the benefit of the Commission (if agreed to in
a written contract or agreement) before the Commission's own insurance or self-insurance shall
be called upon to protect it as a named insured. The umbrella/excess policy shall be provided on
a "following form" basis with coverage at least as broad as provided on the underlying
policy(ies).
(iv) Contractor shall provide the Commission at least
thirty (30) days prior written notice of cancellation of any policy required by this Agreement,
except that the Contractor shall provide at least ten (10) days prior written notice of cancellation
of any such policy due to non-payment of premium. If any of the required coverage is cancelled
or expires during the term of this Agreement, the Contractor shall deliver renewal certificate(s)
including the General Liability Additional Insured Endorsement to the Commission at least ten
(10) days prior to the effective date of cancellation or expiration.
(v) The retroactive date (if any) of each policy is to be
no later than the effective date of this Agreement. Contractor shall maintain such coverage
continuously for a period of at least three years after the completion of the work under this
Agreement. Contractor shall purchase a one (1) year extended reporting period A) if the
retroactive date is advanced past the effective date of this Agreement; B) if the policy is
cancelled or not renewed; or C) if the policy is replaced by another claims -made policy with a
retroactive date subsequent to the effective date of this Agreement.
(vi) The foregoing requirements as to the types and
limits of insurance coverage to be maintained by Contractor, and any approval of said insurance
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by the Commission, is not intended to and shall not in any manner limit or qualify the liabilities
and obligations otherwise assumed by the Contractor pursuant to this Agreement, including but
not limited to, the provisions concerning indemnification.
(vii) If at any time during the life of the Agreement, any
policy of insurance required under this Agreement does not comply with these specifications or
is canceled and not replaced, Commission has the right but not the duty to obtain the insurance it
deems necessary and any premium paid by Commission will be promptly reimbursed by
Contractor or Commission will withhold amounts sufficient to pay premium from Contractor
payments. In the alternative, Commission may cancel this Agreement. The Commission may
require the Contractor to provide complete copies of all insurance policies in effect for the
duration of the Project.
(viii) Neither the Commission nor any of its directors,
officials, officers, employees or agents shall be personally responsible for any liability arising
under or by virtue of this Agreement.
Each insurance policy required by this Agreement shall be
endorsed to state that:
3.2.11.4 Deductibles and Self -Insurance Retentions. Any
deductibles or self -insured retentions must be declared to and approved by the Commission. If
the Commission does not approve the deductibles or self -insured retentions as presented,
Contractor shall guarantee that, at the option of the Commission, either: (1) the insurer shall
reduce or eliminate such deductibles or self -insured retentions as respects the Commission, its
directors, officials, officers, employees and agents; or, (2) the Contractor shall procure a bond
guaranteeing payment of losses and related investigation costs, claims and administrative and
defense expenses.
3.2.11.5 Acceptability of Insurers. Insurance is to be placed with
insurers with a current A.M. Best's rating no less than A:VIII, licensed to do business in
California, and satisfactory to the Commission.
3.2.11.6 Verification of Coverage. Contractor shall furnish
Commission with original certificates of insurance and endorsements effecting coverage required
by this Agreement on forms satisfactory to the Commission. The certificates and endorsements
for each insurance policy shall be signed by a person authorized by that insurer to bind coverage
on its behalf. All certificates and endorsements must be received and approved by the
Commission before work commences. The Commission reserves the right to require complete,
certified copies of all required insurance policies, at any time.
3.2.11.7 Subcontractor Insurance Requirements. Contractor shall not
allow any subcontractors or subcontractors to commence work on any subcontract until they
have provided evidence satisfactory to the Commission that they have secured all insurance
required under this section. Policies of commercial general liability insurance provided by such
subcontractors or subcontractors shall be endorsed to name the Commission as an additional
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insured using ISO form CG 20 38 04 13 or an endorsement providing the exact same coverage.
If requested by Contractor, the Commission may approve different scopes or minimum limits of
insurance for particular subcontractors or subcontractors.
3.2.12 Safety. Contractor shall execute and maintain its work so as to
avoid injury or damage to any person or property. In carrying out its Services, the Contractor
shall at all times be in compliance with all applicable local, state and federal laws, rules and
regulations, and shall exercise all necessary precautions for the safety of employees appropriate
to the nature of the work and the conditions under which the work is to be performed. Safety
precautions as applicable shall include, but shall not be limited to: (A) adequate life protection
and life saving equipment and procedures; (B) instructions in accident prevention for all
employees and subcontractors, such as safe walkways, scaffolds, fall protection ladders, bridges,
gang planks, confined space procedures, trenching and shoring, equipment and other safety
devices, equipment and wearing apparel as are necessary or lawfully required to prevent
accidents or injuries; and (C) adequate facilities for the proper inspection and maintenance of all
safety measures.
3.2.13 Accounting Records. Contractor shall maintain complete and accurate
records with respect to all costs and expenses incurred under this Agreement. All such records
shall be clearly identifiable. Contractor shall allow a representative of Commission during
normal business hours to examine, audit, and make transcripts or copies of such records and any
other documents created pursuant to this Agreement. Contractor shall allow inspection of all
work, data, documents, proceedings, and activities related to the Agreement for a period of three
(3) years from the date of final payment under this Agreement.
3.3 Fees and Payments; Labor Code Requirements; Bonds
3.3.1 Compensation. Contractor shall receive compensation, including
authorized reimbursements, for all Services rendered under this Agreement at the rates set forth
in Exhibit "B" attached hereto and incorporated herein by reference, or at the lump sum set forth
in a Task Order, in accordance with the terms of the relevant Task Order. The total
compensation per Task Order shall be set forth in the relevant Task Order, and shall not exceed
said amount without the written approval of the Commissioner's Executive Director. The total
value each Task Order shall be set forth in the relevant Task Order. Extra Work may be
authorized, as described below, and if authorized, will be compensated at the rates and manner
set forth in this Agreement.
3.3.2 NTE Sum. Commission has or will enter into three (3) task order
contracts for the Services generally identified in Exhibit "A" ("On -Call Maintenance and Repair
Services Task Order Contracts"). The other On -Call Maintenance and Repair Services Task
Order Contract is Agreement No. 24-24-049-00 to Joshua Grading & Excavating and Agreement
No. 24-24-050-00 to Real Estate Management and Services. The total amount payable by
Commission for the On -Call Maintenance and Repair Services Task Order Contracts shall not
exceed a cumulative maximum total value of $XXXXXXX ("NTE Sum"). It is understood and
agreed that there is no guarantee, either expressed or implied that this dollar amount will be
authorized under the On -Call Maintenance and Repair Services Task Order Contracts through
Task Orders. Each time a Task Order is awarded under any of the On -Call Maintenance and
Repair Services Task Order Contracts, the Commission shall send written notification to
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Contractor and each of the other Contracts. The notice shall identify the total funds allocated
under issued Task Orders, and the remaining unencumbered amount of the NTE
Sum. Contractor acknowledges and agrees that Commission shall not pay any amount under this
Agreement that would exceed the NTE Sum, and Contractor shall not knowingly enter into a
Task Order that exceeds the NTE Sum.
3.3.3 Payment of Compensation. Contractor shall submit to Commission a
monthly itemized statement which indicates work completed and hours of Services rendered by
Contractor. The statement shall describe the amount of Services and supplies provided since the
initial commencement date, or since the start of the subsequent billing periods, as appropriate,
through the date of the statement. Commission shall, within 45 days of receiving such
statement, review the statement and pay all approved charges thereon.
3.3.4 Reimbursement for Expenses. Contractor shall not be reimbursed for any
expenses unless authorized in writing by Commission.
3.3.5 Extra Work. At any time during the term of this Agreement, Commission
may request that Contractor perform Extra Work. As used herein, "Extra Work" means any
work which is determined by Commission to be necessary for the proper completion of the
Project, but which the parties did not reasonably anticipate would be necessary at the execution
of this Agreement. Contractor shall not perform, nor be compensated for, Extra Work without
written authorization from Commission's Representative.
3.3.6 Prevailing Wages. Contractor is aware of the requirements of California
Labor Code Section 1720, et seq., and 1770, et seq., as well as California Code of Regulations,
Title 8, Section 16000, et seq., ("Prevailing Wage Laws"), which require the payment of
prevailing wage rates and the performance of other requirements on "public works" and
"maintenance" projects. Since the Services are being performed as part of an applicable "public
works" or "maintenance" project, as defined by the Prevailing Wage Laws, and if the total
compensation is $15,000 or more, Contractor agrees to fully comply with such Prevailing Wage
Laws. Commission shall provide Contractor with a copy of the prevailing rates of per diem
wages in effect at the commencement of this Agreement. Contractor shall make copies of the
prevailing rates of per diem wages for each craft, classification or type of worker needed to
execute the Services available to interested parties upon request, and shall post copies at the
Contractor's principal place of business and at the project site. Contractor shall defend,
indemnify and hold the Commission, its officials, officers, employees and agents free and
harmless from any claim or liability arising out of any failure or alleged failure to comply with
the Prevailing Wage Laws.
3.3.6 Payroll Records. In accordance with the requirements of California Labor
Code Section 1776, Contractor shall keep accurate payroll records which are either on forms
provided by the Division of Labor Standards Enforcement or which contain the same
information required by such forms. Responsibility for compliance with California Labor Code
Section 1776 shall rest solely with Contractor, and Contractor shall make all such records
available for inspection at all reasonable hours.
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3.3.7 Registration. Since the Services are being performed as part of an
applicable "public works" or "maintenance" project, pursuant to Labor Code Sections 1725.5
and 1771.1, the Contractor and all subcontractors must be registered with the Department of
Industrial Relations. Contractor shall maintain registration for the duration of the Project and
require the same of any subcontractor. This Project may also be subject to compliance
monitoring and enforcement by the Department of Industrial Relations. It shall be Contractor's
sole responsibility to comply with all applicable registration and labor compliance requirements.
3.3.8 Employment of Apprentices. This Agreement shall not prevent the
employment of properly indentured apprentices in accordance with the California Labor Code,
and no employer or labor union shall refuse to accept otherwise qualified employees as
indentured apprentices on the work performed hereunder solely on the ground of race, creed,
national origin, ancestry, color or sex. Every qualified apprentice shall be paid the standard
wage paid to apprentices under the regulations of the craft or trade in which he or she is
employed and shall be employed only in the craft or trade to which he or she is registered.
If California Labor Code Section 1777.5 applies to the Services, Contractor and
any subcontractor hereunder who employs workers in any apprenticeable craft or trade shall
apply to the joint apprenticeship council administering applicable standards for a certificate
approving Contractor or any sub -contractor for the employment and training of apprentices.
Upon issuance of this certificate, Contractor and any sub -contractor shall employ the number of
apprentices provided for therein, as well as contribute to the fund to administer the
apprenticeship program in each craft or trade in the area of the work hereunder.
The parties expressly understand that the responsibility for compliance with
provisions of this Section and with Sections 1777.5, 1777.6 and 1777.7 of the California Labor
Code in regard to all apprenticeable occupations lies with Contractor.
3.3.9 Eight -Hour Law. Pursuant to the provisions of the California Labor Code,
eight hours of labor shall constitute a legal day's work, and the time of service of any worker
employed on the work shall be limited and restricted to eight hours during any one calendar day,
and forty hours in any one calendar week, except when payment for overtime is made at not less
than one and one-half the basic rate for all hours worked in excess of eight hours per day
("Eight -Hour Law"), unless Contractor or the Services are not subject to the Eight -Hour Law.
Contractor shall forfeit to Commission as a penalty, $50.00 for each worker employed in the
execution of this Agreement by him, or by any sub -contractor under him, for each calendar day
during which such workman is required or permitted to work more than eight hours in any
calendar day and forty hours in any one calendar week without such compensation for overtime
violation of the provisions of the California Labor Code, unless Contractor or the Services are
not subject to the Eight -Hour Law.
3.3.10 Bonds.
3.3.10.1 Payment Bond. If requested by the Commission as part of
a Task Order proposal request, Contractor shall execute and provide to the Commission
concurrently with the executed Task Order a payment bond in an amount required by the
Commission and in a form provided or approved by the Commission. If such bond is required,
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no payment will be made to Contractor until the bond has been received and approved by the
Commission.
3.3.10.2 Bond Provisions. Should, in the Commission's sole
opinion, any bond become insufficient or any surety be found to be unsatisfactory, Contractor
shall renew or replace the affected bond within (ten) 10 days of receiving notice from
Commission. In the event the surety or Contractor intends to reduce or cancel any required
bond, at least thirty (30) days prior written notice shall be given to the Commission, and
Contractor shall post an acceptable replacement bond at least ten (10) days prior to expiration of
the original bond. No further payments shall be deemed due or will be made under the relevant
Task Order until any replacement bond required by this section are accepted by the Commission.
To the extent, if any, that the total price under a Task Order requiring a bond is increased in
accordance with this Agreement, the Contractor shall, upon request of the Commission, cause the
amount of the bond to be increased accordingly and shall promptly deliver satisfactory evidence
of such increase to the Commission.
3.3.10.3 Surety Qualifications. Only bonds executed by an admitted
surety insurer, as defined in California Code of Civil Procedure Section 995.120, shall be
accepted. The surety must be a California -admitted surety and satisfactory to the Commission.
If a California -admitted surety insurer issuing bonds does not meet these requirements, the
insurer will be considered qualified if it is in conformance with Section 995.660 of the California
Code of Civil Procedure, and proof of such is provided to the Commission.
3.4 Termination of Agreement.
3.4.1 Grounds for Termination. Commission may, by written notice to
Contractor, terminate the whole or any part of this Agreement at any time and without cause by
giving written notice to Contractor of such termination, and specifying the effective date thereof,
at least seven (7) days before the effective date of such termination. Upon termination,
Contractor shall be compensated only for those services which have been adequately rendered to
Commission, and Contractor shall be entitled to no further compensation. Contractor may not
terminate this Agreement except for cause.
3.4.2 Effect of Termination. If this Agreement is terminated as provided herein,
Commission may require Contractor to provide all finished or unfinished Documents and Data
and other information of any kind prepared by Contractor in connection with the performance of
Services under this Agreement. Contractor shall be required to provide such document and other
information within fifteen (15) days of the request.
3.4.3 Additional Services. In the event this Agreement is terminated in whole
or in part as provided herein, Commission may procure, upon such terms and in such manner as
it may determine appropriate, services similar to those terminated.
3.5 General Provisions.
3.5.1 Delivery of Notices. All notices permitted or required under this
Agreement shall be given to the respective parties at the following address, or at such other
address as the respective parties may provide in writing for this purpose:
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CONSULTANT:
4D Surface Management, Inc.
P.O. Box 123
Yucaipa, CA 92399
Attn: Mike Doucette
COMMISSION:
Riverside County
Transportation Commission
4080 Lemon Street, 3rd Floor
Riverside, CA 92501
Attn: Executive Director
Such notice shall be deemed made when personally delivered or when mailed,
forty-eight (48) hours after deposit in the U.S. Mail, first class postage prepaid and addressed to
the party at its applicable address. Actual notice shall be deemed adequate notice on the date
actual notice occurred, regardless of the method of service.
3.5.2 Indemnification.
3.5.2.1 Scope of Indemnity. To the fullest extent permitted by law,
Contractor shall defend, indemnify and hold the Commission, its officials, officers, employees,
volunteers and agents free and harmless from any and all claims, demands, causes of action,
costs, expenses, liability, loss, damage or injury of any kind, in law or equity, to property or
persons, including wrongful death, in any manner arising out of, pertaining to, or incident to any
alleged acts, errors or omissions of Contractor, its officials, officers, employees, subcontractors,
contractors or agents in connection with the performance of the Services, the Project, this
Agreement or any Task Order, including without limitation the payment of all consequential
damages, expert witness fees and attorneys' fees and other related costs and expenses. The only
limitations on this provision shall be those imposed by Civil Code Section 2782.
3.5.2.2 Additional Indemnity Obligations. Contractor shall defend, with
Counsel of Commission's choosing and at Contractor's own cost, expense and risk, any and all
claims, suits, actions or other proceedings of every kind covered by Section 3.5.2.1 that may be
brought or instituted against Commission or its officials, officers, employees, volunteers and
agents. Contractor shall pay and satisfy any judgment, award or decree that may be rendered
against Commission or its officials, officers, employees, volunteers and agents as part of any
such claim, suit, action or other proceeding. Contractor shall also reimburse Commission for the
cost of any settlement paid by Commission or its officials, officers, employees, agents or
volunteers as part of any such claim, suit, action or other proceeding. Such reimbursement shall
include payment for Commission's attorneys' fees and costs, including expert witness fees.
Contractor shall reimburse Commission and its officials, officers, employees, agents, and/or
volunteers, for any and all legal expenses and costs incurred by each of them in connection
therewith or in enforcing the indemnity herein provided. Contractor's obligation to indemnify
shall survive expiration or termination of this Agreement, and shall not be restricted to insurance
proceeds, if any, received by the Commission, its officials officers, employees, agents, or
volunteers.
3.5.3 Governing Law; Government Code Claim Compliance. This Agreement
shall be governed by the laws of the State of California. Venue shall be in Riverside County. In
addition to any and all contract requirements pertaining to notices of and requests for
compensation or payment for extra work, disputed work, claims and/or changed conditions,
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Contractor must comply with the claim procedures set forth in Government Code sections 900 et
seq. prior to filing any lawsuit against the Commission. Such Government Code claims and any
subsequent lawsuit based upon the Government Code claims shall be limited to those matters
that remain unresolved after all procedures pertaining to extra work, disputed work, claims,
and/or changed conditions have been followed by Contractor. If no such Government Code
claim is submitted, or if any prerequisite contractual requirements are not otherwise satisfied as
specified herein, Contractor shall be barred from bringing and maintaining a valid lawsuit against
the Commission.
3.5.4 Time of Essence. Time is of the essence for each and every provision of
this Agreement.
3.5.5 Commission's Right to Employ Other Contractors. Commission reserves
right to employ other contractors in connection with this Project.
3.5.6 Successors and Assigns. This Agreement shall be binding on the
successors and assigns of the parties.
3.5.7 Assignment or Transfer. Contractor shall not assign, hypothecate or
transfer, either directly or by operation of law, this Agreement or any interest herein without the
prior written consent of the Commission. Any attempt to do so shall be null and void, and any
assignees, hypothecates or transferees shall acquire no right or interest by reason of such
attempted assignment, hypothecation or transfer. Subcontracts, if any, shall contain a provision
making them subject to all provisions stipulated in this Agreement.
3.5.8 Construction; References; Captions. Since the Parties or their agents have
participated fully in the preparation of this Agreement, the language of this Agreement shall be
construed simply, according to its fair meaning, and not strictly for or against any Party. Any
term referencing time, days or period for performance shall be deemed calendar days and not
work days. All references to Contractor include all personnel, employees, agents, and
subcontractors of Contractor, except as otherwise specified in this Agreement. All references to
Commission include its officials, officers, employees, agents, and volunteers except as otherwise
specified in this Agreement. The captions of the various articles and paragraphs are for
convenience and ease of reference only, and do not define, limit, augment, or describe the scope,
content or intent of this Agreement.
3.5.9 Amendment; Modification. No supplement, modification or amendment
of this Agreement shall be binding unless executed in writing and signed by both Parties.
3.5.10 Waiver. No waiver of any default shall constitute a waiver of any other
default or breach, whether of the same or other covenant or condition. No waiver, benefit,
privilege, or service voluntarily given or performed by a Party shall give the other Party any
contractual rights by custom, estoppel or otherwise.
3.5.11 No Third Party Beneficiaries. Except to the extent expressly provided for
in Section 3.5.7, there are no intended third party beneficiaries of any right or obligation assumed
by the Parties.
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3.5.12 Invalidity; Severability. If any portion of this Agreement is declared
invalid, illegal, or otherwise unenforceable by a court of competent jurisdiction, the remaining
provisions shall continue in full force and effect.
3.5.13 Prohibited Interests. Contractor maintains and warrants that it has not
employed nor retained any company or person, other than a bona fide employee working solely
for Contractor, to solicit or secure this Agreement. Further, Contractor warrants that it has not
paid nor has it agreed to pay any company or person, other than a bona fide employee working
solely for Contractor, any fee, commission, percentage, brokerage fee, gift or other consideration
contingent upon or resulting from the award or making of this Agreement. Contractor further
agrees to file, or shall cause its employees or subcontractors to file, a Statement of Economic
Interest with the Commission's Filing Officer as required under state law in the performance of
the Services. For breach or violation of this warranty, Commission shall have the right to rescind
this Agreement without liability. For the term of this Agreement, no member, officer or
employee of Commission, during the term of his or her service with Commission, shall have any
direct interest in this Agreement, or obtain any present or anticipated material benefit arising
therefrom.
3.5.14 Cooperation; Further Acts. The Parties shall fully cooperate with one
another, and shall take any additional acts or sign any additional documents as may be necessary,
appropriate or convenient to attain the purposes of this Agreement.
3.5.15 Authority to Enter Agreement. Contractor has all requisite power and
authority to conduct its business and to execute, deliver, and perform the Agreement. Each Party
warrants that the individuals who have signed this Agreement have the legal power, right, and
authority to make this Agreement and bind each respective Party.
3.5.16 Counterparts. This Agreement may be signed in counterparts, each of
which shall constitute an original.
3.5.17 Entire Agreement. This Agreement contains the entire Agreement of the
parties with respect to the subject matter hereof, and supersedes all prior negotiations,
understandings or agreements. This Agreement may only be modified by a writing signed by
both parties.
3.5.18 Federal Provisions. Funding for Services under a Task Order may be
provided, in whole or in part, by the Federal Transportation Administration ("FTA"), by the
California Department of Transportation (Caltrans), or by the South Coast Air Quality
Management District ("SCAQMD"). Contractor shall also fully and adequately comply with the
FTA, Caltrans and SCAQMD provisions included in Exhibit "C" (Funding Agency
Requirements) attached hereto and incorporated herein by reference ("Funding Agency
Requirements"), as applicable based on the funding source for the relevant Task Order. With
respect to any conflict between such Funding Agency Requirements and the terms of this
Agreement and/or the provisions of state law, the more stringent requirement shall control.
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SIGNATURE PAGE FOR ON -CALL MAINTENANCE AND REPAIR SERVICES
AGREEMENT
BETWEEN THE RIVERSIDE COUNTY TRANSPORTATION COMMISSION
AND 4D SURFACE MANAGEMENT, INC.
IN WITNESS WHEREOF, the Parties have entered into this Agreement as of the date
first set forth above.
RIVERSIDE COUNTY CONTRACTOR
TRANSPORTATION COMMISSION
Anne Mayer
Executive Director
Approved as to form:
Best Best & Krieger LLP
General Counsel
Signature
Name
Title
ATTEST:
Signature
Name
Title
A corporation requires the signatures of two corporate officers. One signature shall be that of the
chairman of board, the president or any vice president and the second signature (on the attest
line) shall be that of the secretary, any assistant secretary, the chief financial officer or any
assistant treasurer of such corporation.
If the above referenced persons are not the intended signators, evidence of signature authority
shall be provided to Commission.
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EXHIBIT "A" - SCOPE OF SERVICES
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STATEMENT OF SERVICES
A. SCHEDULING OF WORK
The Contractor shall accomplish all routine maintenance required under
this Contract between the hours of 8:00 a.m. and 3:30 p.m. Monday through
Friday unless otherwise authorized or directed by the Commission. The
Commission may provide, on an individual basis, permission to perform
maintenance at other hours or on the weekends.
B. PROCEDURES FOR THE DEVELOPMENT OF TASK ORDERS
1. The Commission will provide the Contractor with a description of Work it
wishes Contractor to perform under this Contract. The description
shall include sufficient detail to permit the Contractor to provide a Task
Order Price, including the ability to cost any special insurance, bonding
or other costs associated with the requested Work.
2. As needs arise, the Commission will develop a brief scope of work and
select a consultant from the list of bench consultants depending on the
type of support needed and the qualifications of the firm. The selected
consultant will respond by providing information about the level of effort
required to perform the required services. This will be documented on a
pre -approved Contract Task Order (CTO). Rates and cost for each CTO
will be in accordance with rates indicated in the price schedules. Upon
approval by the Commission's Project Manager, a CTO will be issued on
a time and expense basis. The consultant will be required to commence
work within five days or sooner after receiving a fully executed CTO.
3. The Commission and Contractor will work cooperatively to address any
issues and negotiate a final Task Order and Task Order Price. Such
negotiations shall be limited to the price and the scope of Work to be
performed.
4. The Commission shall prepare, sign and deliver to the Contractor for
signature a Task Order consistent with the negotiations and include
sufficient exhibits and documentation to fully memorialize the
understanding of the parties with respect to price and the Scope of Work
to be performed under the Task Order.
5. The Contractor shall sign and deliver to the Commission the signed
copies of the Task Order within two (2) days of receipt of a Task Order
executed by an authorized representative of the Commission.
6. Unless otherwise provided for within the Task Order, the Contractor shall
commence the Work provided for in the Task Order within five (5) days
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of Contractor's delivery of the fully executed Task Order to Commission,
and without the need for further notice or authorization by the
Commission.
C. STORM WATER POLLUTION PREVENTION PROGRAM (SWPPP)
1. Contractor shall ensure that all employees and subcontractor employees
are trained and are aware of the following Site Specific Storm
Water Pollution Prevention Requirements:
a. No discharge of fertilizers, pesticide, and wastes into street or
storm drains;
b. No blowing or sweeping debris into street or storm drains;
c. No hosing down of the parking lot;
d. No vehicle washing or maintenance on site;
e. Close dumpster lids at all time;
f. No disposing of wash water into street or storm drains; and
g. Remove all foreign objects (leaves, cans, cigarette butts, paper
etc.) from in front of drainage inlets and gutter areas.
2. The Contractor shall provide annual refresher training on the Site Specific
Storm Water Pollution Prevention Requirements to its employees and
subcontractors.
3. The Contractor shall document the training on the attached Site Specific
Storm Water Pollution Prevention Training Log and provide it annually
to RCTC. Form included.
D. CHEMICALS
1. Contractor shall provide a list of all chemicals that are proposed to be used
on the project. This list shall be submitted to RCTC for review and
approval, prior to use of the chemicals.
2. Contractor shall provide Material Safety Data Sheets (MSDS) for all
chemicals that are to be used on the project.
3. Contractor shall ensure the field crews carry copies of the MSDS for all
chemicals they have while on -site.
4. Contractor is encouraged to use bio-degradable or environmentally friendly
chemicals.
5. Contractor shall ensure that all employees are properly trained in the use
and handling of the approved chemicals.
6. Contractor shall ensure that all employees, including subcontractors, utilize
the proper PPE as specified by the chemical or the Contractor's safety
plan, whichever is most stringent.
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ON -CALL MAINTENANCE
The following list is a non -exhaustive list of tasks that may be requested to be
provided by the Contractor:
A. POTENTIAL FUTURE MAINTENANCE OUTSIDE OF RAILROAD
RIGHT-OF-WAY AND TOLL FACILITIES
1. Asphalt repairs within parking lot or bus lane -cold patch or saw cut,
removal and placement of hot mix, place guard top slurry seal.
2. Parking stalls striping or stenciling.
3. Concrete curb painting.
4. Concrete wheel stop removal, replacement, purchase, and
installation.
5. Miscellaneous painting touch up on canopies, towers, benches,
handrail/guardrail, trash cans, trash dumpster gates, walls inside of
the pedestrian overcrossings, light poles, monuments and other
areas as necessary.
6. Repairs to the walls inside of the pedestrian overcrossings.
7. Repairs to Stucco walls and columns.
8. Clean out plugged drains- toilet, sink, platform, and drinking
faucets.
9. Repair, patch, or replace damaged concrete curb, gutter, platform,
sidewalk, handicap ramps, mini -ramps, stairs, color concrete, etc.
10. Repair or patch roofing.
11. Remove, replace, purchase, and install Station Signage on post,
light poles, CCTV poles, columns, and walls
12. Perform various plumbing maintenance/repairs - locate water leaks,
repair leaking pipe, replace old or. damaged bathroom fixtures,
replace old or damaged drinking fountains and hose bibs, and other
work as necessary
13. Remove, clean, and place anti -slip floor treatment.
14. Remove or relocate bike lockers and racks.
15. Repair and or replace bike storage facilities and racks.
16. Replace or repair trash receptacles.
17. Place new concrete or asphalt as directed.
18. Repair and replace ADA ramps, pathways using current standards
19. Remove, replace, relocate, or install new bollards - steel and
concrete.
20. Provide forces and equipment to unload and place heavy or large
items purchased for use at the stations i.e. kiosks, benches, bike
racks, bike lockers, furniture, etc.
21. Paint Canopies and Canopy columns.
22. Repair, or perform maintenance on Storm Drain Curb Inlets and
manholes.
23. Maintenance or repairs to Water main lines and laterals.
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24 Maintenance or repairs to sewer main lines and laterals.
25 Maintenance or repairs to the Station fire hydrants.
26 Purchase and install box drains and place drain lines in landscape
planters at Downtown Riverside Station.
27 Purchase and install window treatments - solar shades or window
tint in security room.
28 Maintain, Install, Repair Solar Panels, carport structures, flagpoles,
Guard Shacks, and Doors.
29 Maintenance, repairs, or painting of Light Poles.
30 Concrete pour inspections, roadway maintenance/repair, and sign
installation as needed and allowable.
31 Other repairs/replacement and maintenance as requested.
32 Repair and service Commission owned assets as needed:
Generators, Solar equipment, Elevators, Parking structures and
other equipment
33 Modernize/Improve station equipment assets as required and
needed: Elevators, Generators, Parking structures, Solar equipment
for Commission owned assets, and other equipment
B. POTENTIAL FUTURE MAINTENANCE WITHIN THE RAILROAD
RIGHT- OF -WAY OR WORK WITH THE POTENTIAL TO FOUL THE
TRACK
1. Repair or replace at -grade pedestrian crossings at the ends of the
platforms.
2. Repair rolling or sliding gates at the Stations at -grade pedestrian
crossings.
3. Perform maintenance or repairs on the outside of Pedestrian
Bridge and Towers.
4. Perform electrical maintenance or repairs on light poles near the
railroad tracks, on neon signs located on the Pedestrian Bridges,
etc.
5. Repair or patch roofing on Pedestrian Bridges.
6. Paint or touch up Pedestrian Bridge and Towers.
7. Remove, purchase, and install new windows or revised window
system within Pedestrian Bridge.
8. Install anti -bird devices on Pedestrian Bridge and Towers.
9. Pressure wash and/or clean Pedestrian Bridge and Towers.
10. Remove CCTV Camera Poles from between the tracks.
11. Repair Damaged Platform Canopies.
12. Repair or replace Tactile Tile along Station platforms.
13. Repair / Maintenance to concrete platforms.
14. Repair / Maintenance and painting of handrail/guardrail.
15. Repair / Maintenance and painting of center line track fence
between Main Line 1 and Main Line 2 tracks.
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16. Maintenance to ballast at end of platforms or around at -grade
pedestrian crossings.
17. Repair, clean, maintenance to Platform drains.
18. Remove, replace, or place new Signage at the ends of the Station
platforms.
19. Remove, replace, or place new Painted striping and lettering on
concrete platform within railroad right-of-way.
20. Repair plumbing leaks within concrete platforms.
21. Power wash sidewalks, platforms, and canopies
22. Other repairs/maintenance as requested.
STATION LOCATIONS
West Corona Metrolink Station
155 S. Auto Center Drive
Corona, CA 92880
La Sierra Station
10901-A Indiana Ave
Riverside, CA 92503
Pedley Station
6001 Pedley Road
Riverside, CA 92509
Hunter Park Station
1101 Marlborough Avenue
Riverside, CA 92507
South Perris Station
1304 Case Road
Perris, CA 92510
Operations Control Center
4344 Vine Street
Riverside CA, 92507
North Main Corona Station
250 E. Blaine Street
Corona, CA 92879
La Sierra Bus Station
10901-B Indiana Ave
Riverside, CA 92503
Perris Downtown Station
121 South C Street
Perris, CA 92570
Moreno Valley/MF Station
14160 Meridian Parkway
Riverside, CA 92518
Riverside Downtown
4066 Vine Street
Riverside, CA 92507
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TOLL FACILITIES
FAM ROC
120 N. Joy Street 301 Corporate Terrace
Corona, CA 92879 Corona, CA 92879
15 Toll Rd Office
291 Corporate Terrace
Corona, CA 92879
Toll TUB Westbound 91
West Bound 91
Center Divide
Toll TUB Eastbound 91
East Bound 91
Center divide
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EXHIBIT "B" -COMPENSATION RATES
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EXHIBIT "C"- FUNDING AGENCY REQUIREMENTS
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ATTACHMENT 2
Agreement 24-24-049-00
RIVERSIDE COUNTY TRANSPORTATION COMMISSION
ON -CALL
MAINTENANCE AND REPAIR SERVICES AGREEMENT
1. PARTIES AND DATE.
This Agreement is made and entered into this day of , 2024 by and
between the Riverside County Transportation Commission ("Commission") and Joshua Grading
& Excavating, Inc., a Corporation, with its principal place of business at 8450B White Road,
Phelan, CA 92371 ("Contractor"). Commission and Contractor are sometimes individually
referred to as "Party" and collectively as "Parties" in this Agreement.
2. RECITALS.
2.1 Commission is the Transportation Commission for the County of
Riverside and organized under the laws of the State of California with the power to contract for
services necessary to achieve its purpose.
2.2 Commission owns and operates nine (9) commuter rail stations, one (1)
security command center, one (1) transit center, and five (5) toll facilities serving Riverside
County, the addresses and descriptions of which are set forth in Exhibit "A", attached hereto and
incorporated herein by reference ("Commuter Rail Stations and Toll Facilities").
2.3 On or about October 5, 2023, Commission issued a Request for Proposals
No. 24-24-034-00 ("RFP"), pursuant to which Commission sought proposals for on -call
maintenance and repair services for the Commuter Rail Stations and Toll Facilities.
2.4 Contractor desires to perform and assume responsibility for the provision
of on -call maintenance and repair services required by Commission on the terms and conditions
set forth in this Agreement and in the task order(s) to be solicited, awarded and authorized by
Commission Purchase Orders as further described in this Agreement ("Task Order").
2.5 The work generally includes the maintenance and repair of the Commuter
Rail Stations and Toll Facilities. Contractor represents that it is a professional Contractor,
experienced in providing on -call maintenance and repair services to public clients, and is familiar
with the plans of Commission.
2.6 Commission desires to engage Contractor to render on -call maintenance
and repair services for the Commuter Rail Stations and Toll Facilities. On -call maintenance and
repair services shall be generally as set forth in Exhibit "A", attached hereto and incorporated
herein by reference. On -call maintenance and repair services shall be ordered by Task Order(s)
to be issued pursuant to this Agreement for future projects as set forth herein. The services set
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forth in Exhibit "A" and each individual project ordered under a Task Order shall be referred to,
herein, collectively, as the "Project".
2.7 Services procured under a Task Order may be funded, in whole or in part,
with state and/or federal funds. Contractor shall comply with all applicable funding
requirements.
3. TERMS.
3.1 Scope of Services and Term.
3.1.1 General Scope of Services. Contractor promises and agrees to furnish to
Commission all labor materials, tools, equipment, services, and incidental and customary work,
as necessary, to fully and adequately provide the on -call maintenance and repair services for the
Commuter Rail Stations and Toll Facilities required by Commission, as shall be generally
described in Exhibit "A" and as more specifically described in each Task Order, collectively
referred to herein as the "Services". On -call Services shall be more particularly described in the
individual Task Orders issued by the Commission's Executive Director or designee.
No Services shall be performed unless authorized by a Commission Purchase
Order for Task Order Services, as further detailed herein. All Services shall be subject to, and
performed in accordance with, this Agreement, the relevant Task Order, the exhibits attached
hereto and incorporated herein by reference, and all applicable local, state and federal laws, rules
and regulations
3.1.2 Term. The term of this Agreement shall be from July 1, 2023 to June 30,
2026, unless earlier terminated as provided herein. Contractor shall complete the Services within
the term of this Agreement, and shall meet any other established schedules and deadlines. The
Parties may, by mutual, written consent, extend the term of this Agreement if necessary to
complete the Services.
3.2 Responsibilities of Contractor.
3.2.1 Control and Payment of Subordinates; Independent Contractor. The
Services shall be performed by Contractor or under its supervision. Contractor will determine
the means, methods and details of performing the Services subject to the requirements of this
Agreement. Commission retains Contractor on an independent contractor basis and not as an
employee. Contractor retains the right to perform similar or different services for others during
the term of this Agreement. Any additional personnel performing the Services under this
Agreement on behalf of Contractor shall also not be employees of Commission and shall at all
times be under Contractor's exclusive direction and control. Contractor shall pay all wages,
salaries, and other amounts due such personnel in connection with their performance of Services
under this Agreement and as required by law. Contractor shall be responsible for all reports and
obligations respecting such additional personnel, including, but not limited to: social security
taxes, income tax withholding, unemployment insurance, disability insurance, and workers'
compensation insurance.
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3.2.2 Task Orders; Commencement and Schedule of Services.
Services under this Agreement shall be competitively solicited amongst
Contractor and the other firms identified in Section 3.3.2 of this Agreement pursuant to a Task
Order request for bid process. If Contractor's Task Order bid is selected for a Project, the
Commission shall issue a Purchase Order for the Services. Contractor's agreement to the final
terms of a proposed Task Order, Commission's issuance of a Purchase Order and Contractor's
commencement of the Services following issuance of the Purchase Order shall indicate the
Parties' agreement to the terms of the relevant Task Order.
Contractor shall commence Services under a Task Order within five (5) days of
receiving a Purchase Order for the Task Order Services from the Commission. Each request for
Task Order bids shall identify the funding source(s) to be used to fund the Services under the
relevant Task Order, and Contractor shall comply with the requirements specified herein, and in
the attached exhibits, applicable to the identified funding source(s).
Contractor represents that it has the professional and technical personnel required
to perform the Services in conformance with such conditions. In order to facilitate Contractor's
conformance with each Schedule, the Commission shall respond to Contractor's submittals in a
timely manner. Upon the Commission's request, Contractor shall provide a more detailed
schedule of anticipated performance to meet the relevant Schedule of Services.
3.2.3 Conformance to Applicable Requirements. All work prepared by
Contractor shall be subject to the approval of Commission.
3.2.4 Commission's Representative. The Commission hereby designates the
Executive Director, or his or her designee, to act as its representative for the performance of this
Agreement ("Commission's Representative"). Commission's Representative shall have the
power to act on behalf of the Commission for all purposes under this Agreement. Contractor
shall not accept direction or orders from any person other than the Commission's Representative
or his or her designee.
3.2.5 Contractor's Representative. Contractor hereby designates Jordan Gibson
or his or her designee, to act as its representative for the performance of this Agreement
("Contractor's Representative"). Contractor's Representative shall have full authority to
represent and act on behalf of the Contractor for all purposes under this Agreement. The
Contractor's Representative shall supervise and direct the Services, using his best skill and
attention, and shall be responsible for all means, methods, techniques, sequences and procedures
and for the satisfactory coordination of all portions of the Services under this Agreement.
3.2.6 Coordination of Services. Contractor agrees to work closely with
Commission staff in the performance of Services and shall be available to Commission's staff,
consultants and other staff at all reasonable times.
3.2.7 Standard of Care; Performance of Employees. Contractor shall perform
all Services under this Agreement in a skillful and competent manner, consistent with the
standards generally recognized as being employed by professionals in the same discipline in the
State of California. Contractor represents and maintains that it is skilled in the professional
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calling necessary to perform the Services. Contractor warrants that all employees and
subcontractors shall have sufficient skill and experience to perform the Services assigned to
them. Finally, Contractor represents that it, its employees and subcontractors have all licenses,
permits, qualifications and approvals of whatever nature that are legally required to perform the
Services, and that such licenses and approvals shall be maintained throughout the term of this
Agreement. As provided for in the indemnification provisions of this Agreement, Contractor
shall perform, at its own cost and expense and without reimbursement from the Commission, any
services necessary to correct errors or omissions which are caused by the Contractor's failure to
comply with the standard of care provided for herein. Any employee of the Contractor or its
sub -contractors who is determined by the Commission to be uncooperative, incompetent, a threat
to the adequate or timely completion of the Project, a threat to the safety of persons or property,
or any employee who fails or refuses to perform the Services in a manner acceptable to the
Commission, shall be promptly removed from the Project by the Contractor and shall not be
re-employed to perform any of the Services or to work on the Project.
3.2.8 Period of Performance. Contractor shall perform the Services in strict
accordance with any completion schedule or Project milestones described in each Task Order.
Contractor agrees that if the Services are not completed within the aforementioned performance
time and/or pursuant to any such completion schedule or Project milestones developed pursuant
to provisions of this Agreement and included in any Task Order, it is understood, acknowledged
and agreed that the Commission will suffer damage.
3.2.9 Disputes. Should any dispute arise respecting the true value of any work
done, of any work omitted, or of any extra work which Contractor may be required to do, or
respecting the size of any payment to Contractor during the performance of this Contract,
Contractor shall continue to perform the Work while said dispute is decided by the Commission.
If Contractor disputes the Commission's decision, Contractor shall have such remedies as may
be provided by law.
3.2.10 Laws and Regulations; Employee/Labor Certifications. Contractor shall
keep itself fully informed of and in compliance with all local, state and federal laws, rules and
regulations in any manner affecting the performance of the Project or the Services, including all
Cal/OSHA requirements, and shall give all notices required by law. Contractor shall be liable
for all violations of such laws and regulations in connection with Services. If the Contractor
performs any work knowing it to be contrary to such laws, rules and regulations and without
giving written notice to the Commission, Contractor shall be solely responsible for all costs
arising therefrom. Commission is a public entity of the State of California subject to, among
other rules and regulations, the Public Utilities Code, Public Contract Code, and Labor Code of
the State. It is stipulated and agreed that all provisions of the law applicable to the public
contracts of a county transportation commissions are a part of this Agreement to the same extent
as though set forth herein and will be complied with. These include but are not limited to the
payment of prevailing wages, the stipulation that eight (8) hours' labor shall constitute a legal
day's work and that no worker shall be permitted to work in excess of eight (8) hours during any
one calendar day except as permitted by law. Contractor shall defend, indemnify and hold
Commission, its officials, officers, employees and agents free and harmless, pursuant to the
indemnification provisions of this Agreement, from any claim or liability arising out of any
failure or alleged failure to comply with such laws, rules or regulations.
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3.2.10.1 Employment Eligibility; Contractor. By executing this
Agreement, Contractor verifies that it fully complies with all requirements and restrictions of
state and federal law respecting the employment of undocumented aliens, including, but not
limited to, the Immigration Reform and Control Act of 1986, as may be amended from time to
time. Such requirements and restrictions include, but are not limited to, examination and
retention of documentation confirming the identity and immigration status of each employee of
the Contractor. Contractor also verifies that it has not committed a violation of any such law
within the five (5) years immediately preceding the date of execution of this Agreement, and
shall not violate any such law at any time during the term of the Agreement. Contractor shall
avoid any violation of any such law during the term of this Agreement by participating in an
electronic verification of work authorization program operated by the United States Department
of Homeland Security, by participating in an equivalent federal work authorization program
operated by the United States Department of Homeland Security to verify information of newly
hired employees, or by some other legally acceptable method. Contractor shall maintain records
of each such verification, and shall make them available to the Commission or its representatives
for inspection and copy at any time during normal business hours. The Commission shall not be
responsible for any costs or expenses related to Contractor's compliance with the requirements
provided for in Section 3.2.10 or any of its sub -sections.
3.2.10.2 Employment Eligibility; Subcontractors, Sub -
subcontractors and consultants. To the same extent and under the same conditions as Contractor,
Contractor shall require all of its subcontractors, sub -subcontractors and consultants performing
any work relating to the Project or this Agreement to make the same verifications and comply
with all requirements and restrictions provided for in Section 3.2.10.1.
3.2.10.3 Employment Eligibility; Failure to Comply. Each person
executing this Agreement on behalf of Contractor verifies that they are a duly authorized officer
of Contractor, and understands that any of the following shall be grounds for the Commission to
terminate the Agreement for cause: (1) failure of Contractor or its subcontractors, sub -
subcontractors or consultants to meet any of the requirements provided for in Sections 3.2.10.1
or 3.2.10.2; (2) any misrepresentation or material omission concerning compliance with such
requirements (including in those verifications provided to the Contractor under Section 3.2.10.2);
or (3) failure to immediately remove from the Project any person found not to be in compliance
with such requirements.
3.2.10.4 Labor Certification. By its signature hereunder, Contractor
certifies that it is aware of the provisions of Section 3700 of the California Labor Code which
require every employer to be insured against liability for Workers' Compensation or to undertake
self-insurance in accordance with the provisions of that Code, and agrees to comply with such
provisions before commencing the performance of the Services.
3.2.10.5 Equal Opportunity Employment. Contractor represents that
it is an equal opportunity employer and it shall not discriminate against any subcontractor,
employee or applicant for employment because of race, religion, color, national origin, handicap,
ancestry, sex or age. Such non-discrimination shall include, but not be limited to, all activities
related to initial employment, upgrading, demotion, transfer, recruitment or recruitment
advertising, layoff or termination. Contractor shall also comply with all relevant provisions of
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Commission's Disadvantaged Business Enterprise program, Affirmative Action Plan or other
related programs or guidelines currently in effect or hereinafter enacted.
3.2.10.6 Air Quality. Contractor must fully comply with
all applicable laws, rules and regulations in furnishing or using equipment and/or providing
services, including, but not limited to, emissions limits and permitting requirements imposed by
the California Air Resources Board (CARB). Contractor shall specifically be aware of the
CARB limits and requirements' application to "portable equipment", which definition is
considered by CARB to include any item of equipment with a fuel -powered engine. Contractor
shall indemnify Commission against any fines or penalties imposed by CARB or any other
governmental or regulatory agency for violations of applicable laws, rules and/or regulations by
Contractor, its subcontractors, or others for whom Contractor is responsible under its indemnity
obligations provided for in this Agreement.
3.2.10.7 Water Quality.
(A) Management and Compliance. To the extent applicable,
Contractor's Services must account for, and fully comply with, all local, state and federal laws,
rules and regulations that may impact water quality compliance, including, without limitation, all
applicable provisions of the Federal Water Pollution Control Act (33 U.S.C. §§ 1300); the
California Porter -Cologne Water Quality Control Act (Cal Water Code §§ 13000-14950); laws,
rules and regulations of the Environmental Protection Agency and the State Water Resources
Control Board; the Commission's rules regarding discharges of storm water; and any and all
regulations, policies, or permits issued pursuant to any such authority regulating the discharge of
pollutants, as that term is used in the Porter -Cologne Water Quality Control Act, to any ground
or surface water in the State.
(B) Liability for Non -Compliance. Failure to comply with the
laws, regulations and policies described in this Section is a violation of law that may subject
Contractor or Commission to penalties, fines, or additional regulatory requirements. Contractor
shall defend, indemnify and hold the Commission, its officials, officers, employees, volunteers
and agents free and harmless, pursuant to the indemnification provisions of this Agreement, from
and against any and all fines, penalties, claims or other regulatory requirements imposed as a
result of Contractor's non-compliance with the laws, regulations and policies described in this
Section, unless such non-compliance is the result of the sole established negligence, willful
misconduct or active negligence of the Commission, its officials, officers, agents, employees or
authorized volunteers.
(C) Training. In addition to any other standard of care
requirements set forth in this Agreement, Contractor warrants that all employees and
subcontractors shall have sufficient skill and experience to perform the Services assigned to them
without impacting water quality in violation of the laws, regulations and policies described in
this Section. Contractor further warrants that it, its employees and subcontractors will receive
adequate training, as determined by Commission, regarding the requirements of the laws,
regulations and policies described in this Section as they may relate to the Services provided
under this Agreement. Upon request, Commission will provide Contractor with a list of training
programs that meet the requirements of this paragraph.
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3.2.11 Insurance.
3.2.11.1 Time for Compliance. Contractor shall not commence
work under this Agreement until it has provided evidence satisfactory to the Commission that it
has secured all insurance required under this section, in a form and with insurance companies
acceptable to the Commission. In addition, Contractor shall not allow any subcontractor to
commence work on any subcontract until it has secured all insurance required under this section.
3.2.11.2 Minimum Requirements. Contractor shall, at its expense,
procure and maintain for the duration of the Agreement insurance against claims for injuries to
persons or damages to property which may arise from or in connection with the performance of
the Agreement by the Contractor, its agents, representatives, employees or subcontractors.
Contractor shall also require all of its subcontractors to procure and maintain the same insurance
for the duration of the Agreement. Such insurance shall meet at least the following minimum
levels of coverage:
(A) Minimum Scope of Insurance. Coverage shall be at least as
broad as the latest version of the following: (1) General Liability: Insurance Services Office
Commercial General Liability coverage (occurrence form CG 0001 or exact equivalent); (2)
Automobile Liability: Insurance Services Office Business Auto Coverage (form CA 0001, code 1
(any auto) or exact equivalent); and (3) Workers' Compensation and Employer's Liability:
Workers' Compensation insurance as required by the State of California and Employer's
Liability Insurance.
(B) Minimum Limits of Insurance. Contractor shall maintain
limits no less than: (1) General Liability: $2,000,000 per occurrence for bodily injury, personal
injury and property damage. If Commercial General Liability Insurance or other form with
general aggregate limit is used, either the general aggregate limit shall apply separately to this
Agreement/location or the general aggregate limit shall be twice the required occurrence limit;
(2) Automobile Liability: $1,000,000 per accident for bodily injury and property damage; and (3)
if Contractor has an employees, Workers' Compensation and Employer's Liability: Workers'
Compensation limits as required by the Labor Code of the State of California. Employer's
Practices Liability limits of $1,000,000 per accident.
3.2.11.3 Insurance Endorsements. The insurance policies shall
contain the following provisions, or Contractor shall provide endorsements on forms approved
by the Commission to add the following provisions to the insurance policies:
(A) General Liability.
(i) Commercial General Liability Insurance must
include coverage for (1) bodily Injury and property damage; (2) personal Injury/advertising
Injury; (3) premises/operations liability; (4) products/completed operations liability; (5)
aggregate limits that apply per Project; (6) explosion, collapse and underground (UCX)
exclusion deleted; (7) contractual liability with respect to this Agreement; (8) broad form
property damage; and (9) independent contractors coverage.
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(ii) The policy shall contain no endorsements or
provisions limiting coverage for (1) contractual liability; (2) cross liability exclusion for claims
or suits by one insured against another; or (3) contain any other exclusion contrary to this
Agreement.
(iii) The policy shall give the Commission, its directors,
officials, officers, employees, and agents insured status using ISO endorsement forms 20 10 10
01 and 20 37 10 01, or endorsements providing the exact same coverage.
(iv) The additional insured coverage under the policy
shall be "primary and non-contributory" and will not seek contribution from the Commission's
insurance or self-insurance and shall be at least as broad as CG 20 01 04 13, or endorsements
providing the exact same coverage.
(v) The policy shall not include any restrictions related
to indemnity for work performed within fifty (50) feet of Commission's railroad right-of-
way/tracks.
(B) Automobile Liability. The automobile liability policy shall
be endorsed to state that: (1) the Commission, its directors, officials, officers, employees and
agents shall be covered as additional insureds with respect to the ownership, operation,
maintenance, use, loading or unloading of any auto owned, leased, hired or borrowed by the
Contractor or for which the Contractor is responsible; and (2) the insurance coverage shall be
primary insurance as respects the Commission, its directors, officials, officers, employees and
agents, or if excess, shall stand in an unbroken chain of coverage excess of the Contractor's
scheduled underlying coverage. Any insurance or self-insurance maintained by the Commission,
its directors, officials, officers, employees and agents shall be excess of the Contractor's
insurance and shall not be called upon to contribute with it in any way.
(C) Workers' Compensation and Employers Liability
Coverage.
(i) Contractor certifies that he/she is aware of the
provisions of Section 3700 of the California Labor Code which requires every employer to be
insured against liability for workers' compensation or to undertake self-insurance in accordance
with the provisions of that code, and he/she will comply with such provisions before
commencing work under this Agreement.
(ii) The insurer shall agree to waive all rights of
subrogation against the Commission, its directors, officials, officers, employees and agents for
losses paid under the terms of the insurance policy which arise from work performed by the
Contractor.
(D) Railroad Protective Liability. In addition to the policies
specified above, prior to commencing any Task Order work within (50) feet of Commission's
railroad right-of-way/tracks, Contractor shall acquire and keep in force during the period of such
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work $2,000,000 (combined single limit)/ $6,000,000 (aggregate limit) of railroad protective
liability insurance naming only Commission as the insured.
(E) All Coverages.
(i)
limits set forth hereunder.
Defense costs shall be payable in addition to the
(ii) Requirements of specific coverage or limits
contained in this section are not intended as a limitation on coverage, limits, or other
requirement, or a waiver of any coverage normally provided by any insurance. It shall be a
requirement under this Agreement that any available insurance proceeds broader than or in
excess of the specified minimum insurance coverage requirements and/or limits set forth herein
shall be available to the Commission, its directors, officials, officers, employees and agents as
additional insureds under said policies. Furthermore, the requirements for coverage and limits
shall be (1) the minimum coverage and limits specified in this Agreement; or (2) the broader
coverage and maximum limits of coverage of any insurance policy or proceeds available to the
named insured; whichever is greater.
(iii) The limits of insurance required in this Agreement
may be satisfied by a combination of primary and umbrella or excess insurance. Any umbrella or
excess insurance shall contain or be endorsed to contain a provision that such coverage shall also
apply on a primary and non-contributory basis for the benefit of the Commission (if agreed to in
a written contract or agreement) before the Commission's own insurance or self-insurance shall
be called upon to protect it as a named insured. The umbrella/excess policy shall be provided on
a "following form" basis with coverage at least as broad as provided on the underlying
policy(ies).
(iv) Contractor shall provide the Commission at least
thirty (30) days prior written notice of cancellation of any policy required by this Agreement,
except that the Contractor shall provide at least ten (10) days prior written notice of cancellation
of any such policy due to non-payment of premium. If any of the required coverage is cancelled
or expires during the term of this Agreement, the Contractor shall deliver renewal certificate(s)
including the General Liability Additional Insured Endorsement to the Commission at least ten
(10) days prior to the effective date of cancellation or expiration.
(v) The retroactive date (if any) of each policy is to be
no later than the effective date of this Agreement. Contractor shall maintain such coverage
continuously for a period of at least three years after the completion of the work under this
Agreement. Contractor shall purchase a one (1) year extended reporting period A) if the
retroactive date is advanced past the effective date of this Agreement; B) if the policy is
cancelled or not renewed; or C) if the policy is replaced by another claims -made policy with a
retroactive date subsequent to the effective date of this Agreement.
(vi) The foregoing requirements as to the types and
limits of insurance coverage to be maintained by Contractor, and any approval of said insurance
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by the Commission, is not intended to and shall not in any manner limit or qualify the liabilities
and obligations otherwise assumed by the Contractor pursuant to this Agreement, including but
not limited to, the provisions concerning indemnification.
(vii) If at any time during the life of the Agreement, any
policy of insurance required under this Agreement does not comply with these specifications or
is canceled and not replaced, Commission has the right but not the duty to obtain the insurance it
deems necessary and any premium paid by Commission will be promptly reimbursed by
Contractor or Commission will withhold amounts sufficient to pay premium from Contractor
payments. In the alternative, Commission may cancel this Agreement. The Commission may
require the Contractor to provide complete copies of all insurance policies in effect for the
duration of the Project.
(viii) Neither the Commission nor any of its directors,
officials, officers, employees or agents shall be personally responsible for any liability arising
under or by virtue of this Agreement.
Each insurance policy required by this Agreement shall be
endorsed to state that:
3.2.11.4 Deductibles and Self -Insurance Retentions. Any
deductibles or self -insured retentions must be declared to and approved by the Commission. If
the Commission does not approve the deductibles or self -insured retentions as presented,
Contractor shall guarantee that, at the option of the Commission, either: (1) the insurer shall
reduce or eliminate such deductibles or self -insured retentions as respects the Commission, its
directors, officials, officers, employees and agents; or, (2) the Contractor shall procure a bond
guaranteeing payment of losses and related investigation costs, claims and administrative and
defense expenses.
3.2.11.5 Acceptability of Insurers. Insurance is to be placed with
insurers with a current A.M. Best's rating no less than A:VIII, licensed to do business in
California, and satisfactory to the Commission.
3.2.11.6 Verification of Coverage. Contractor shall furnish
Commission with original certificates of insurance and endorsements effecting coverage required
by this Agreement on forms satisfactory to the Commission. The certificates and endorsements
for each insurance policy shall be signed by a person authorized by that insurer to bind coverage
on its behalf. All certificates and endorsements must be received and approved by the
Commission before work commences. The Commission reserves the right to require complete,
certified copies of all required insurance policies, at any time.
3.2.11.7 Subcontractor Insurance Requirements. Contractor shall not
allow any subcontractors or subcontractors to commence work on any subcontract until they
have provided evidence satisfactory to the Commission that they have secured all insurance
required under this section. Policies of commercial general liability insurance provided by such
subcontractors or subcontractors shall be endorsed to name the Commission as an additional
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insured using ISO form CG 20 38 04 13 or an endorsement providing the exact same coverage.
If requested by Contractor, the Commission may approve different scopes or minimum limits of
insurance for particular subcontractors or subcontractors.
3.2.12 Safety. Contractor shall execute and maintain its work so as to
avoid injury or damage to any person or property. In carrying out its Services, the Contractor
shall at all times be in compliance with all applicable local, state and federal laws, rules and
regulations, and shall exercise all necessary precautions for the safety of employees appropriate
to the nature of the work and the conditions under which the work is to be performed. Safety
precautions as applicable shall include, but shall not be limited to: (A) adequate life protection
and life saving equipment and procedures; (B) instructions in accident prevention for all
employees and subcontractors, such as safe walkways, scaffolds, fall protection ladders, bridges,
gang planks, confined space procedures, trenching and shoring, equipment and other safety
devices, equipment and wearing apparel as are necessary or lawfully required to prevent
accidents or injuries; and (C) adequate facilities for the proper inspection and maintenance of all
safety measures.
3.2.13 Accounting Records. Contractor shall maintain complete and accurate
records with respect to all costs and expenses incurred under this Agreement. All such records
shall be clearly identifiable. Contractor shall allow a representative of Commission during
normal business hours to examine, audit, and make transcripts or copies of such records and any
other documents created pursuant to this Agreement. Contractor shall allow inspection of all
work, data, documents, proceedings, and activities related to the Agreement for a period of three
(3) years from the date of final payment under this Agreement.
3.3 Fees and Payments; Labor Code Requirements; Bonds
3.3.1 Compensation. Contractor shall receive compensation, including
authorized reimbursements, for all Services rendered under this Agreement at the rates set forth
in Exhibit "B" attached hereto and incorporated herein by reference, or at the lump sum set forth
in a Task Order, in accordance with the terms of the relevant Task Order. The total
compensation per Task Order shall be set forth in the relevant Task Order, and shall not exceed
said amount without the written approval of the Commissioner's Executive Director. The total
value each Task Order shall be set forth in the relevant Task Order. Extra Work may be
authorized, as described below, and if authorized, will be compensated at the rates and manner
set forth in this Agreement.
3.3.2 NTE Sum. Commission has or will enter into three (3) task order
contracts for the Services generally identified in Exhibit "A" ("On -Call Maintenance and Repair
Services Task Order Contracts"). The other On -Call Maintenance and Repair Services Task
Order Contract is Agreement No. 24-24-034-00 to 4D Surface Management and Agreement No.
24-24-050-00 to Real Estate Consulting and Services. The total amount payable by Commission
for the On -Call Maintenance and Repair Services Task Order Contracts shall not exceed a
cumulative maximum total value of $XXXXXXX ("NTE Sum"). It is understood and agreed
that there is no guarantee, either expressed or implied that this dollar amount will be authorized
under the On -Call Maintenance and Repair Services Task Order Contracts through Task
Orders. Each time a Task Order is awarded under any of the On -Call Maintenance and Repair
Services Task Order Contracts, the Commission shall send written notification to Contractor and
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each of the other contractors entering into the On -Call Maintenance and Repair Services Task
Order Contracts. The notice shall identify the total funds allocated under issued Task Orders,
and the remaining unencumbered amount of the NTE Sum. Contractor acknowledges and agrees
that Commission shall not pay any amount under this Agreement that would exceed the NTE
Sum, and Contractor shall not knowingly enter into a Task Order that exceeds the NTE Sum.
3.3.3 Payment of Compensation. Contractor shall submit to Commission a
monthly itemized statement which indicates work completed and hours of Services rendered by
Contractor. The statement shall describe the amount of Services and supplies provided since the
initial commencement date, or since the start of the subsequent billing periods, as appropriate,
through the date of the statement. Commission shall, within 45 days of receiving such
statement, review the statement and pay all approved charges thereon.
3.3.4 Reimbursement for Expenses. Contractor shall not be reimbursed for any
expenses unless authorized in writing by Commission.
3.3.5 Extra Work. At any time during the term of this Agreement, Commission
may request that Contractor perform Extra Work. As used herein, "Extra Work" means any
work which is determined by Commission to be necessary for the proper completion of the
Project, but which the parties did not reasonably anticipate would be necessary at the execution
of this Agreement. Contractor shall not perform, nor be compensated for, Extra Work without
written authorization from Commission's Representative.
3.3.6 Prevailing Wages. Contractor is aware of the requirements of California
Labor Code Section 1720, et seq., and 1770, et seq., as well as California Code of Regulations,
Title 8, Section 16000, et seq., ("Prevailing Wage Laws"), which require the payment of
prevailing wage rates and the performance of other requirements on "public works" and
"maintenance" projects. Since the Services are being performed as part of an applicable "public
works" or "maintenance" project, as defined by the Prevailing Wage Laws, and if the total
compensation is $15,000 or more, Contractor agrees to fully comply with such Prevailing Wage
Laws. Commission shall provide Contractor with a copy of the prevailing rates of per diem
wages in effect at the commencement of this Agreement. Contractor shall make copies of the
prevailing rates of per diem wages for each craft, classification or type of worker needed to
execute the Services available to interested parties upon request, and shall post copies at the
Contractor's principal place of business and at the project site. Contractor shall defend,
indemnify and hold the Commission, its officials, officers, employees and agents free and
harmless from any claim or liability arising out of any failure or alleged failure to comply with
the Prevailing Wage Laws.
3.3.6 Payroll Records. In accordance with the requirements of California Labor
Code Section 1776, Contractor shall keep accurate payroll records which are either on forms
provided by the Division of Labor Standards Enforcement or which contain the same
information required by such forms. Responsibility for compliance with California Labor Code
Section 1776 shall rest solely with Contractor, and Contractor shall make all such records
available for inspection at all reasonable hours.
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3.3.7 Registration. Since the Services are being performed as part of an
applicable "public works" or "maintenance" project, pursuant to Labor Code Sections 1725.5
and 1771.1, the Contractor and all subcontractors must be registered with the Department of
Industrial Relations. Contractor shall maintain registration for the duration of the Project and
require the same of any subcontractor. This Project may also be subject to compliance
monitoring and enforcement by the Department of Industrial Relations. It shall be Contractor's
sole responsibility to comply with all applicable registration and labor compliance requirements.
3.3.8 Employment of Apprentices. This Agreement shall not prevent the
employment of properly indentured apprentices in accordance with the California Labor Code,
and no employer or labor union shall refuse to accept otherwise qualified employees as
indentured apprentices on the work performed hereunder solely on the ground of race, creed,
national origin, ancestry, color or sex. Every qualified apprentice shall be paid the standard
wage paid to apprentices under the regulations of the craft or trade in which he or she is
employed and shall be employed only in the craft or trade to which he or she is registered.
If California Labor Code Section 1777.5 applies to the Services, Contractor and
any subcontractor hereunder who employs workers in any apprenticeable craft or trade shall
apply to the joint apprenticeship council administering applicable standards for a certificate
approving Contractor or any sub -contractor for the employment and training of apprentices.
Upon issuance of this certificate, Contractor and any sub -contractor shall employ the number of
apprentices provided for therein, as well as contribute to the fund to administer the
apprenticeship program in each craft or trade in the area of the work hereunder.
The parties expressly understand that the responsibility for compliance with
provisions of this Section and with Sections 1777.5, 1777.6 and 1777.7 of the California Labor
Code in regard to all apprenticeable occupations lies with Contractor.
3.3.9 Eight -Hour Law. Pursuant to the provisions of the California Labor Code,
eight hours of labor shall constitute a legal day's work, and the time of service of any worker
employed on the work shall be limited and restricted to eight hours during any one calendar day,
and forty hours in any one calendar week, except when payment for overtime is made at not less
than one and one-half the basic rate for all hours worked in excess of eight hours per day
("Eight -Hour Law"), unless Contractor or the Services are not subject to the Eight -Hour Law.
Contractor shall forfeit to Commission as a penalty, $50.00 for each worker employed in the
execution of this Agreement by him, or by any sub -contractor under him, for each calendar day
during which such workman is required or permitted to work more than eight hours in any
calendar day and forty hours in any one calendar week without such compensation for overtime
violation of the provisions of the California Labor Code, unless Contractor or the Services are
not subject to the Eight -Hour Law.
3.3.10 Bonds.
3.3.10.1 Payment Bond. If requested by the Commission as part of
a Task Order proposal request, Contractor shall execute and provide to the Commission
concurrently with the executed Task Order a payment bond in an amount required by the
Commission and in a form provided or approved by the Commission. If such bond is required,
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no payment will be made to Contractor until the bond has been received and approved by the
Commission.
3.3.10.2 Bond Provisions. Should, in the Commission's sole
opinion, any bond become insufficient or any surety be found to be unsatisfactory, Contractor
shall renew or replace the affected bond within (ten) 10 days of receiving notice from
Commission. In the event the surety or Contractor intends to reduce or cancel any required
bond, at least thirty (30) days prior written notice shall be given to the Commission, and
Contractor shall post an acceptable replacement bond at least ten (10) days prior to expiration of
the original bond. No further payments shall be deemed due or will be made under the relevant
Task Order until any replacement bond required by this section are accepted by the Commission.
To the extent, if any, that the total price under a Task Order requiring a bond is increased in
accordance with this Agreement, the Contractor shall, upon request of the Commission, cause the
amount of the bond to be increased accordingly and shall promptly deliver satisfactory evidence
of such increase to the Commission.
3.3.10.3 Surety Qualifications. Only bonds executed by an admitted
surety insurer, as defined in California Code of Civil Procedure Section 995.120, shall be
accepted. The surety must be a California -admitted surety and satisfactory to the Commission.
If a California -admitted surety insurer issuing bonds does not meet these requirements, the
insurer will be considered qualified if it is in conformance with Section 995.660 of the California
Code of Civil Procedure, and proof of such is provided to the Commission.
3.4 Termination of Agreement.
3.4.1 Grounds for Termination. Commission may, by written notice to
Contractor, terminate the whole or any part of this Agreement at any time and without cause by
giving written notice to Contractor of such termination, and specifying the effective date thereof,
at least seven (7) days before the effective date of such termination. Upon termination,
Contractor shall be compensated only for those services which have been adequately rendered to
Commission, and Contractor shall be entitled to no further compensation. Contractor may not
terminate this Agreement except for cause.
3.4.2 Effect of Termination. If this Agreement is terminated as provided herein,
Commission may require Contractor to provide all finished or unfinished Documents and Data
and other information of any kind prepared by Contractor in connection with the performance of
Services under this Agreement. Contractor shall be required to provide such document and other
information within fifteen (15) days of the request.
3.4.3 Additional Services. In the event this Agreement is terminated in whole
or in part as provided herein, Commission may procure, upon such terms and in such manner as
it may determine appropriate, services similar to those terminated.
3.5 General Provisions.
3.5.1 Delivery of Notices. All notices permitted or required under this
Agreement shall be given to the respective parties at the following address, or at such other
address as the respective parties may provide in writing for this purpose:
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CONSULTANT:
Joshua Grading & Excavating, Inc.
8450B White Road
Phelan, CA 92371
Attn: Kim Carpenter
COMMISSION:
Riverside County
Transportation Commission
4080 Lemon Street, 3rd Floor
Riverside, CA 92501
Attn: Executive Director
Such notice shall be deemed made when personally delivered or when mailed,
forty-eight (48) hours after deposit in the U.S. Mail, first class postage prepaid and addressed to
the party at its applicable address. Actual notice shall be deemed adequate notice on the date
actual notice occurred, regardless of the method of service.
3.5.2 Indemnification.
3.5.2.1 Scope of Indemnity. To the fullest extent permitted by law,
Contractor shall defend, indemnify and hold the Commission, its officials, officers, employees,
volunteers and agents free and harmless from any and all claims, demands, causes of action,
costs, expenses, liability, loss, damage or injury of any kind, in law or equity, to property or
persons, including wrongful death, in any manner arising out of, pertaining to, or incident to any
alleged acts, errors or omissions of Contractor, its officials, officers, employees, subcontractors,
contractors or agents in connection with the performance of the Services, the Project, this
Agreement or any Task Order, including without limitation the payment of all consequential
damages, expert witness fees and attorneys' fees and other related costs and expenses. The only
limitations on this provision shall be those imposed by Civil Code Section 2782.
3.5.2.2 Additional Indemnity Obligations. Contractor shall defend, with
Counsel of Commission's choosing and at Contractor's own cost, expense and risk, any and all
claims, suits, actions or other proceedings of every kind covered by Section 3.5.2.1 that may be
brought or instituted against Commission or its officials, officers, employees, volunteers and
agents. Contractor shall pay and satisfy any judgment, award or decree that may be rendered
against Commission or its officials, officers, employees, volunteers and agents as part of any
such claim, suit, action or other proceeding. Contractor shall also reimburse Commission for the
cost of any settlement paid by Commission or its officials, officers, employees, agents or
volunteers as part of any such claim, suit, action or other proceeding. Such reimbursement shall
include payment for Commission's attorneys' fees and costs, including expert witness fees.
Contractor shall reimburse Commission and its officials, officers, employees, agents, and/or
volunteers, for any and all legal expenses and costs incurred by each of them in connection
therewith or in enforcing the indemnity herein provided. Contractor's obligation to indemnify
shall survive expiration or termination of this Agreement, and shall not be restricted to insurance
proceeds, if any, received by the Commission, its officials officers, employees, agents, or
volunteers.
3.5.3 Governing Law; Government Code Claim Compliance. This Agreement
shall be governed by the laws of the State of California. Venue shall be in Riverside County. In
addition to any and all contract requirements pertaining to notices of and requests for
compensation or payment for extra work, disputed work, claims and/or changed conditions,
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Contractor must comply with the claim procedures set forth in Government Code sections 900 et
seq. prior to filing any lawsuit against the Commission. Such Government Code claims and any
subsequent lawsuit based upon the Government Code claims shall be limited to those matters
that remain unresolved after all procedures pertaining to extra work, disputed work, claims,
and/or changed conditions have been followed by Contractor. If no such Government Code
claim is submitted, or if any prerequisite contractual requirements are not otherwise satisfied as
specified herein, Contractor shall be barred from bringing and maintaining a valid lawsuit against
the Commission.
3.5.4 Time of Essence. Time is of the essence for each and every provision of
this Agreement.
3.5.5 Commission's Right to Employ Other Contractors. Commission reserves
right to employ other contractors in connection with this Project.
3.5.6 Successors and Assigns. This Agreement shall be binding on the
successors and assigns of the parties.
3.5.7 Assignment or Transfer. Contractor shall not assign, hypothecate or
transfer, either directly or by operation of law, this Agreement or any interest herein without the
prior written consent of the Commission. Any attempt to do so shall be null and void, and any
assignees, hypothecates or transferees shall acquire no right or interest by reason of such
attempted assignment, hypothecation or transfer. Subcontracts, if any, shall contain a provision
making them subject to all provisions stipulated in this Agreement.
3.5.8 Construction; References; Captions. Since the Parties or their agents have
participated fully in the preparation of this Agreement, the language of this Agreement shall be
construed simply, according to its fair meaning, and not strictly for or against any Party. Any
term referencing time, days or period for performance shall be deemed calendar days and not
work days. All references to Contractor include all personnel, employees, agents, and
subcontractors of Contractor, except as otherwise specified in this Agreement. All references to
Commission include its officials, officers, employees, agents, and volunteers except as otherwise
specified in this Agreement. The captions of the various articles and paragraphs are for
convenience and ease of reference only, and do not define, limit, augment, or describe the scope,
content or intent of this Agreement.
3.5.9 Amendment; Modification. No supplement, modification or amendment
of this Agreement shall be binding unless executed in writing and signed by both Parties.
3.5.10 Waiver. No waiver of any default shall constitute a waiver of any other
default or breach, whether of the same or other covenant or condition. No waiver, benefit,
privilege, or service voluntarily given or performed by a Party shall give the other Party any
contractual rights by custom, estoppel or otherwise.
3.5.11 No Third Party Beneficiaries. Except to the extent expressly provided for
in Section 3.5.7, there are no intended third party beneficiaries of any right or obligation assumed
by the Parties.
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3.5.12 Invalidity; Severability. If any portion of this Agreement is declared
invalid, illegal, or otherwise unenforceable by a court of competent jurisdiction, the remaining
provisions shall continue in full force and effect.
3.5.13 Prohibited Interests. Contractor maintains and warrants that it has not
employed nor retained any company or person, other than a bona fide employee working solely
for Contractor, to solicit or secure this Agreement. Further, Contractor warrants that it has not
paid nor has it agreed to pay any company or person, other than a bona fide employee working
solely for Contractor, any fee, commission, percentage, brokerage fee, gift or other consideration
contingent upon or resulting from the award or making of this Agreement. Contractor further
agrees to file, or shall cause its employees or subcontractors to file, a Statement of Economic
Interest with the Commission's Filing Officer as required under state law in the performance of
the Services. For breach or violation of this warranty, Commission shall have the right to rescind
this Agreement without liability. For the term of this Agreement, no member, officer or
employee of Commission, during the term of his or her service with Commission, shall have any
direct interest in this Agreement, or obtain any present or anticipated material benefit arising
therefrom.
3.5.14 Cooperation; Further Acts. The Parties shall fully cooperate with one
another, and shall take any additional acts or sign any additional documents as may be necessary,
appropriate or convenient to attain the purposes of this Agreement.
3.5.15 Authority to Enter Agreement. Contractor has all requisite power and
authority to conduct its business and to execute, deliver, and perform the Agreement. Each Party
warrants that the individuals who have signed this Agreement have the legal power, right, and
authority to make this Agreement and bind each respective Party.
3.5.16 Counterparts. This Agreement may be signed in counterparts, each of
which shall constitute an original.
3.5.17 Entire Agreement. This Agreement contains the entire Agreement of the
parties with respect to the subject matter hereof, and supersedes all prior negotiations,
understandings or agreements. This Agreement may only be modified by a writing signed by
both parties.
3.5.18 Federal Provisions. Funding for Services under a Task Order may be
provided, in whole or in part, by the Federal Transportation Administration ("FTA"), by the
California Department of Transportation (Caltrans), or by the South Coast Air Quality
Management District ("SCAQMD"). Contractor shall also fully and adequately comply with the
FTA, Caltrans and SCAQMD provisions included in Exhibit "C" (Funding Agency
Requirements) attached hereto and incorporated herein by reference ("Funding Agency
Requirements"), as applicable based on the funding source for the relevant Task Order. With
respect to any conflict between such Funding Agency Requirements and the terms of this
Agreement and/or the provisions of state law, the more stringent requirement shall control.
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SIGNATURE PAGE FOR ON -CALL MAINTENANCE AND REPAIR SERVICES
AGREEMENT
BETWEEN THE RIVERSIDE COUNTY TRANSPORTATION COMMISSION
AND JOSHUA GRADING & EXCAVATING, INC.
IN WITNESS WHEREOF, the Parties have entered into this Agreement as of the date
first set forth above.
RIVERSIDE COUNTY CONTRACTOR
TRANSPORTATION COMMISSION
Anne Mayer
Executive Director
Approved as to form:
Best Best & Krieger LLP
General Counsel
Signature
Name
Title
ATTEST:
Signature
Name
Title
A corporation requires the signatures of two corporate officers. One signature shall be that of the
chairman of board, the president or any vice president and the second signature (on the attest
line) shall be that of the secretary, any assistant secretary, the chief financial officer or any
assistant treasurer of such corporation.
If the above referenced persons are not the intended signators, evidence of signature authority
shall be provided to Commission.
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EXHIBIT "A" - SCOPE OF SERVICES
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STATEMENT OF SERVICES
A. SCHEDULING OF WORK
The Contractor shall accomplish all routine maintenance required under
this Contract between the hours of 8:00 a.m. and 3:30 p.m. Monday through
Friday unless otherwise authorized or directed by the Commission. The
Commission may provide, on an individual basis, permission to perform
maintenance at other hours or on the weekends.
B. PROCEDURES FOR THE DEVELOPMENT OF TASK ORDERS
1. The Commission will provide the Contractor with a description of Work it
wishes Contractor to perform under this Contract. The description
shall include sufficient detail to permit the Contractor to provide a Task
Order Price, including the ability to cost any special insurance, bonding
or other costs associated with the requested Work.
2. As needs arise, the Commission will develop a brief scope of work and
select a consultant from the list of bench consultants depending on the
type of support needed and the qualifications of the firm. The selected
consultant will respond by providing information about the level of effort
required to perform the required services. This will be documented on a
pre -approved Contract Task Order (CTO). Rates and cost for each CTO
will be in accordance with rates indicated in the price schedules. Upon
approval by the Commission's Project Manager, a CTO will be issued on
a time and expense basis. The consultant will be required to commence
work within five days or sooner after receiving a fully executed CTO.
3. The Commission and Contractor will work cooperatively to address any
issues and negotiate a final Task Order and Task Order Price. Such
negotiations shall be limited to the price and the scope of Work to be
performed.
4. The Commission shall prepare, sign and deliver to the Contractor for
signature a Task Order consistent with the negotiations and include
sufficient exhibits and documentation to fully memorialize the
understanding of the parties with respect to price and the Scope of Work
to be performed under the Task Order.
5. The Contractor shall sign and deliver to the Commission the signed
copies of the Task Order within two (2) days of receipt of a Task Order
executed by an authorized representative of the Commission.
6. Unless otherwise provided for within the Task Order, the Contractor shall
commence the Work provided for in the Task Order within five (5) days
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of Contractor's delivery of the fully executed Task Order to Commission,
and without the need for further notice or authorization by the
Commission.
C. STORM WATER POLLUTION PREVENTION PROGRAM (SWPPP)
1. Contractor shall ensure that all employees and subcontractor employees
are trained and are aware of the following Site Specific Storm
Water Pollution Prevention Requirements:
a. No discharge of fertilizers, pesticide, and wastes into street or
storm drains;
b. No blowing or sweeping debris into street or storm drains;
c. No hosing down of the parking lot;
d. No vehicle washing or maintenance on site;
e. Close dumpster lids at all time;
f. No disposing of wash water into street or storm drains; and
g. Remove all foreign objects (leaves, cans, cigarette butts, paper
etc.) from in front of drainage inlets and gutter areas.
2. The Contractor shall provide annual refresher training on the Site Specific
Storm Water Pollution Prevention Requirements to its employees and
subcontractors.
3. The Contractor shall document the training on the attached Site Specific
Storm Water Pollution Prevention Training Log and provide it annually
to RCTC. Form included.
D. CHEMICALS
1. Contractor shall provide a list of all chemicals that are proposed to be used
on the project. This list shall be submitted to RCTC for review and
approval, prior to use of the chemicals.
2. Contractor shall provide Material Safety Data Sheets (MSDS) for all
chemicals that are to be used on the project.
3. Contractor shall ensure the field crews carry copies of the MSDS for all
chemicals they have while on -site.
4. Contractor is encouraged to use bio-degradable or environmentally friendly
chemicals.
5. Contractor shall ensure that all employees are properly trained in the use
and handling of the approved chemicals.
6. Contractor shall ensure that all employees, including subcontractors, utilize
the proper PPE as specified by the chemical or the Contractor's safety
plan, whichever is most stringent.
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ON -CALL MAINTENANCE
The following list is a non -exhaustive list of tasks that may be requested to be
provided by the Contractor:
A. POTENTIAL FUTURE MAINTENANCE OUTSIDE OF RAILROAD
RIGHT-OF-WAY AND TOLL FACILITIES
1. Asphalt repairs within parking lot or bus lane -cold patch or saw cut,
removal and placement of hot mix, place guard top slurry seal.
2. Parking stalls striping or stenciling.
3. Concrete curb painting.
4. Concrete wheel stop removal, replacement, purchase, and
installation.
5. Miscellaneous painting touch up on canopies, towers, benches,
handrail/guardrail, trash cans, trash dumpster gates, walls inside of
the pedestrian overcrossings, light poles, monuments and other
areas as necessary.
6. Repairs to the walls inside of the pedestrian overcrossings.
7. Repairs to Stucco walls and columns.
8. Clean out plugged drains- toilet, sink, platform, and drinking
faucets.
9. Repair, patch, or replace damaged concrete curb, gutter, platform,
sidewalk, handicap ramps, mini -ramps, stairs, color concrete, etc.
10. Repair or patch roofing.
11. Remove, replace, purchase, and install Station Signage on post,
light poles, CCTV poles, columns, and walls
12. Perform various plumbing maintenance/repairs - locate water leaks,
repair leaking pipe, replace old or. damaged bathroom fixtures,
replace old or damaged drinking fountains and hose bibs, and other
work as necessary
13. Remove, clean, and place anti -slip floor treatment.
14. Remove or relocate bike lockers and racks.
15. Repair and or replace bike storage facilities and racks.
16. Replace or repair trash receptacles.
17. Place new concrete or asphalt as directed.
18. Repair and replace ADA ramps, pathways using current standards
19. Remove, replace, relocate, or install new bollards - steel and
concrete.
20. Provide forces and equipment to unload and place heavy or large
items purchased for use at the stations i.e. kiosks, benches, bike
racks, bike lockers, furniture, etc.
21. Paint Canopies and Canopy columns.
22. Repair, or perform maintenance on Storm Drain Curb Inlets and
manholes.
23. Maintenance or repairs to Water main lines and laterals.
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24 Maintenance or repairs to sewer main lines and laterals.
25 Maintenance or repairs to the Station fire hydrants.
26 Purchase and install box drains and place drain lines in landscape
planters at Downtown Riverside Station.
27 Purchase and install window treatments - solar shades or window
tint in security room.
28 Maintain, Install, Repair Solar Panels, carport structures, flagpoles,
Guard Shacks, and Doors.
29 Maintenance, repairs, or painting of Light Poles.
30 Concrete pour inspections, roadway maintenance/repair, and sign
installation as needed and allowable.
31 Other repairs/replacement and maintenance as requested.
32 Repair and service Commission owned assets as needed:
Generators, Solar equipment, Elevators, Parking structures and
other equipment
33 Modernize/Improve station equipment assets as required and
needed: Elevators, Generators, Parking structures, Solar equipment
for Commission owned assets, and other equipment
B. POTENTIAL FUTURE MAINTENANCE WITHIN THE RAILROAD
RIGHT- OF -WAY OR WORK WITH THE POTENTIAL TO FOUL THE
TRACK
1. Repair or replace at -grade pedestrian crossings at the ends of the
platforms.
2. Repair rolling or sliding gates at the Stations at -grade pedestrian
crossings.
3. Perform maintenance or repairs on the outside of Pedestrian
Bridge and Towers.
4. Perform electrical maintenance or repairs on light poles near the
railroad tracks, on neon signs located on the Pedestrian Bridges,
etc.
5. Repair or patch roofing on Pedestrian Bridges.
6. Paint or touch up Pedestrian Bridge and Towers.
7. Remove, purchase, and install new windows or revised window
system within Pedestrian Bridge.
8. Install anti -bird devices on Pedestrian Bridge and Towers.
9. Pressure wash and/or clean Pedestrian Bridge and Towers.
10. Remove CCTV Camera Poles from between the tracks.
11. Repair Damaged Platform Canopies.
12. Repair or replace Tactile Tile along Station platforms.
13. Repair / Maintenance to concrete platforms.
14. Repair / Maintenance and painting of handrail/guardrail.
15. Repair / Maintenance and painting of center line track fence
between Main Line 1 and Main Line 2 tracks.
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16. Maintenance to ballast at end of platforms or around at -grade
pedestrian crossings.
17. Repair, clean, maintenance to Platform drains.
18. Remove, replace, or place new Signage at the ends of the Station
platforms.
19. Remove, replace, or place new Painted striping and lettering on
concrete platform within railroad right-of-way.
20. Repair plumbing leaks within concrete platforms.
21. Power wash sidewalks, platforms, and canopies
22. Other repairs/maintenance as requested.
STATION LOCATIONS
West Corona Metrolink Station
155 S. Auto Center Drive
Corona, CA 92880
La Sierra Station
10901-A Indiana Ave
Riverside, CA 92503
Pedley Station
6001 Pedley Road
Riverside, CA 92509
Hunter Park Station
1101 Marlborough Avenue
Riverside, CA 92507
South Perris Station
1304 Case Road
Perris, CA 92510
Operations Control Center
4344 Vine Street
Riverside CA, 92507
North Main Corona Station
250 E. Blaine Street
Corona, CA 92879
La Sierra Bus Station
10901-B Indiana Ave
Riverside, CA 92503
Perris Downtown Station
121 South C Street
Perris, CA 92570
Moreno Valley/MF Station
14160 Meridian Parkway
Riverside, CA 92518
Riverside Downtown
4066 Vine Street
Riverside, CA 92507
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TOLL FACILITIES
FAM ROC
120 N. Joy Street 301 Corporate Terrace
Corona, CA 92879 Corona, CA 92879
15 Toll Rd Office
291 Corporate Terrace
Corona, CA 92879
Toll TUB Westbound 91
West Bound 91
Center Divide
Toll TUB Eastbound 91
East Bound 91
Center divide
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EXHIBIT "B" -COMPENSATION RATES
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EXHIBIT "C"- FUNDING AGENCY REQUIREMENTS
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ATTACHMENT 3
Agreement 24-24-050-00
RIVERSIDE COUNTY TRANSPORTATION COMMISSION
ON -CALL
MAINTENANCE AND REPAIR SERVICES AGREEMENT
1. PARTIES AND DATE.
This Agreement is made and entered into this day of , 2024 by and
between the Riverside County Transportation Commission ("Commission") and Real Estate
Consulting and Services, Inc., a Corporation, with its principal place of business at 18345
Pasadena Street, Lake Elsinore, CA 92530 ("Contractor"). Commission and Contractor are
sometimes individually referred to as "Party" and collectively as "Parties" in this Agreement.
2. RECITALS.
2.1 Commission is the Transportation Commission for the County of
Riverside and organized under the laws of the State of California with the power to contract for
services necessary to achieve its purpose.
2.2 Commission owns and operates nine (9) commuter rail stations, one (1)
security command center, one (1) transit center, and five (5) toll facilities serving Riverside
County, the addresses and descriptions of which are set forth in Exhibit "A", attached hereto and
incorporated herein by reference ("Commuter Rail Stations and Toll Facilities").
2.3 On or about October 5, 2023, Commission issued a Request for Proposals
No. 24-24-034-00 ("RFP"), pursuant to which Commission sought proposals for on -call
maintenance and repair services for the Commuter Rail Stations and Toll Facilities.
2.4 Contractor desires to perform and assume responsibility for the provision
of on -call maintenance and repair services required by Commission on the terms and conditions
set forth in this Agreement and in the task order(s) to be solicited, awarded and authorized by
Commission Purchase Orders as further described in this Agreement ("Task Order").
2.5 The work generally includes the maintenance and repair of the Commuter
Rail Stations and Toll Facilities. Contractor represents that it is a professional Contractor,
experienced in providing on -call maintenance and repair services to public clients, and is familiar
with the plans of Commission.
2.6 Commission desires to engage Contractor to render on -call maintenance
and repair services for the Commuter Rail Stations and Toll Facilities. On -call maintenance and
repair services shall be generally as set forth in Exhibit "A", attached hereto and incorporated
herein by reference. On -call maintenance and repair services shall be ordered by Task Order(s)
to be issued pursuant to this Agreement for future projects as set forth herein. The services set
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forth in Exhibit "A" and each individual project ordered under a Task Order shall be referred to,
herein, collectively, as the "Project".
2.7 Services procured under a Task Order may be funded, in whole or in part,
with state and/or federal funds. Contractor shall comply with all applicable funding
requirements.
3. TERMS.
3.1 Scope of Services and Term.
3.1.1 General Scope of Services. Contractor promises and agrees to furnish to
Commission all labor materials, tools, equipment, services, and incidental and customary work,
as necessary, to fully and adequately provide the on -call maintenance and repair services for the
Commuter Rail Stations and Toll Facilities required by Commission, as shall be generally
described in Exhibit "A" and as more specifically described in each Task Order, collectively
referred to herein as the "Services". On -call Services shall be more particularly described in the
individual Task Orders issued by the Commission's Executive Director or designee.
No Services shall be performed unless authorized by a Commission Purchase
Order for Task Order Services, as further detailed herein. All Services shall be subject to, and
performed in accordance with, this Agreement, the relevant Task Order, the exhibits attached
hereto and incorporated herein by reference, and all applicable local, state and federal laws, rules
and regulations
3.1.2 Term. The term of this Agreement shall be from July 1, 2023 to June 30,
2026, unless earlier terminated as provided herein. Contractor shall complete the Services within
the term of this Agreement, and shall meet any other established schedules and deadlines. The
Parties may, by mutual, written consent, extend the term of this Agreement if necessary to
complete the Services.
3.2 Responsibilities of Contractor.
3.2.1 Control and Payment of Subordinates; Independent Contractor. The
Services shall be performed by Contractor or under its supervision. Contractor will determine
the means, methods and details of performing the Services subject to the requirements of this
Agreement. Commission retains Contractor on an independent contractor basis and not as an
employee. Contractor retains the right to perform similar or different services for others during
the term of this Agreement. Any additional personnel performing the Services under this
Agreement on behalf of Contractor shall also not be employees of Commission and shall at all
times be under Contractor's exclusive direction and control. Contractor shall pay all wages,
salaries, and other amounts due such personnel in connection with their performance of Services
under this Agreement and as required by law. Contractor shall be responsible for all reports and
obligations respecting such additional personnel, including, but not limited to: social security
taxes, income tax withholding, unemployment insurance, disability insurance, and workers'
compensation insurance.
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3.2.2 Task Orders; Commencement and Schedule of Services.
Services under this Agreement shall be competitively solicited amongst
Contractor and the other firms identified in Section 3.3.2 of this Agreement pursuant to a Task
Order request for bid process. If Contractor's Task Order bid is selected for a Project, the
Commission shall issue a Purchase Order for the Services. Contractor's agreement to the final
terms of a proposed Task Order, Commission's issuance of a Purchase Order and Contractor's
commencement of the Services following issuance of the Purchase Order shall indicate the
Parties' agreement to the terms of the relevant Task Order.
Contractor shall commence Services under a Task Order within five (5) days of
receiving a Purchase Order for the Task Order Services from the Commission. Each request for
Task Order bids shall identify the funding source(s) to be used to fund the Services under the
relevant Task Order, and Contractor shall comply with the requirements specified herein, and in
the attached exhibits, applicable to the identified funding source(s).
Contractor represents that it has the professional and technical personnel required
to perform the Services in conformance with such conditions. In order to facilitate Contractor's
conformance with each Schedule, the Commission shall respond to Contractor's submittals in a
timely manner. Upon the Commission's request, Contractor shall provide a more detailed
schedule of anticipated performance to meet the relevant Schedule of Services.
3.2.3 Conformance to Applicable Requirements. All work prepared by
Contractor shall be subject to the approval of Commission.
3.2.4 Commission's Representative. The Commission hereby designates the
Executive Director, or his or her designee, to act as its representative for the performance of this
Agreement ("Commission's Representative"). Commission's Representative shall have the
power to act on behalf of the Commission for all purposes under this Agreement. Contractor
shall not accept direction or orders from any person other than the Commission's Representative
or his or her designee.
3.2.5 Contractor's Representative. Contractor hereby designates Jeffery A.
Coss or his or her designee, to act as its representative for the performance of this Agreement
("Contractor's Representative"). Contractor's Representative shall have full authority to
represent and act on behalf of the Contractor for all purposes under this Agreement. The
Contractor's Representative shall supervise and direct the Services, using his best skill and
attention, and shall be responsible for all means, methods, techniques, sequences and procedures
and for the satisfactory coordination of all portions of the Services under this Agreement.
3.2.6 Coordination of Services. Contractor agrees to work closely with
Commission staff in the performance of Services and shall be available to Commission's staff,
consultants and other staff at all reasonable times.
3.2.7 Standard of Care; Performance of Employees. Contractor shall perform
all Services under this Agreement in a skillful and competent manner, consistent with the
standards generally recognized as being employed by professionals in the same discipline in the
State of California. Contractor represents and maintains that it is skilled in the professional
17336.00600\32785614.1 3
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calling necessary to perform the Services. Contractor warrants that all employees and
subcontractors shall have sufficient skill and experience to perform the Services assigned to
them. Finally, Contractor represents that it, its employees and subcontractors have all licenses,
permits, qualifications and approvals of whatever nature that are legally required to perform the
Services, and that such licenses and approvals shall be maintained throughout the term of this
Agreement. As provided for in the indemnification provisions of this Agreement, Contractor
shall perform, at its own cost and expense and without reimbursement from the Commission, any
services necessary to correct errors or omissions which are caused by the Contractor's failure to
comply with the standard of care provided for herein. Any employee of the Contractor or its
sub -contractors who is determined by the Commission to be uncooperative, incompetent, a threat
to the adequate or timely completion of the Project, a threat to the safety of persons or property,
or any employee who fails or refuses to perform the Services in a manner acceptable to the
Commission, shall be promptly removed from the Project by the Contractor and shall not be
re-employed to perform any of the Services or to work on the Project.
3.2.8 Period of Performance. Contractor shall perform the Services in strict
accordance with any completion schedule or Project milestones described in each Task Order.
Contractor agrees that if the Services are not completed within the aforementioned performance
time and/or pursuant to any such completion schedule or Project milestones developed pursuant
to provisions of this Agreement and included in any Task Order, it is understood, acknowledged
and agreed that the Commission will suffer damage.
3.2.9 Disputes. Should any dispute arise respecting the true value of any work
done, of any work omitted, or of any extra work which Contractor may be required to do, or
respecting the size of any payment to Contractor during the performance of this Contract,
Contractor shall continue to perform the Work while said dispute is decided by the Commission.
If Contractor disputes the Commission's decision, Contractor shall have such remedies as may
be provided by law.
3.2.10 Laws and Regulations; Employee/Labor Certifications. Contractor shall
keep itself fully informed of and in compliance with all local, state and federal laws, rules and
regulations in any manner affecting the performance of the Project or the Services, including all
Cal/OSHA requirements, and shall give all notices required by law. Contractor shall be liable
for all violations of such laws and regulations in connection with Services. If the Contractor
performs any work knowing it to be contrary to such laws, rules and regulations and without
giving written notice to the Commission, Contractor shall be solely responsible for all costs
arising therefrom. Commission is a public entity of the State of California subject to, among
other rules and regulations, the Public Utilities Code, Public Contract Code, and Labor Code of
the State. It is stipulated and agreed that all provisions of the law applicable to the public
contracts of a county transportation commissions are a part of this Agreement to the same extent
as though set forth herein and will be complied with. These include but are not limited to the
payment of prevailing wages, the stipulation that eight (8) hours' labor shall constitute a legal
day's work and that no worker shall be permitted to work in excess of eight (8) hours during any
one calendar day except as permitted by law. Contractor shall defend, indemnify and hold
Commission, its officials, officers, employees and agents free and harmless, pursuant to the
indemnification provisions of this Agreement, from any claim or liability arising out of any
failure or alleged failure to comply with such laws, rules or regulations.
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3.2.10.1 Employment Eligibility; Contractor. By executing this
Agreement, Contractor verifies that it fully complies with all requirements and restrictions of
state and federal law respecting the employment of undocumented aliens, including, but not
limited to, the Immigration Reform and Control Act of 1986, as may be amended from time to
time. Such requirements and restrictions include, but are not limited to, examination and
retention of documentation confirming the identity and immigration status of each employee of
the Contractor. Contractor also verifies that it has not committed a violation of any such law
within the five (5) years immediately preceding the date of execution of this Agreement, and
shall not violate any such law at any time during the term of the Agreement. Contractor shall
avoid any violation of any such law during the term of this Agreement by participating in an
electronic verification of work authorization program operated by the United States Department
of Homeland Security, by participating in an equivalent federal work authorization program
operated by the United States Department of Homeland Security to verify information of newly
hired employees, or by some other legally acceptable method. Contractor shall maintain records
of each such verification, and shall make them available to the Commission or its representatives
for inspection and copy at any time during normal business hours. The Commission shall not be
responsible for any costs or expenses related to Contractor's compliance with the requirements
provided for in Section 3.2.10 or any of its sub -sections.
3.2.10.2 Employment Eligibility; Subcontractors, Sub -
subcontractors and consultants. To the same extent and under the same conditions as Contractor,
Contractor shall require all of its subcontractors, sub -subcontractors and consultants performing
any work relating to the Project or this Agreement to make the same verifications and comply
with all requirements and restrictions provided for in Section 3.2.10.1.
3.2.10.3 Employment Eligibility; Failure to Comply. Each person
executing this Agreement on behalf of Contractor verifies that they are a duly authorized officer
of Contractor, and understands that any of the following shall be grounds for the Commission to
terminate the Agreement for cause: (1) failure of Contractor or its subcontractors, sub -
subcontractors or consultants to meet any of the requirements provided for in Sections 3.2.10.1
or 3.2.10.2; (2) any misrepresentation or material omission concerning compliance with such
requirements (including in those verifications provided to the Contractor under Section 3.2.10.2);
or (3) failure to immediately remove from the Project any person found not to be in compliance
with such requirements.
3.2.10.4 Labor Certification. By its signature hereunder, Contractor
certifies that it is aware of the provisions of Section 3700 of the California Labor Code which
require every employer to be insured against liability for Workers' Compensation or to undertake
self-insurance in accordance with the provisions of that Code, and agrees to comply with such
provisions before commencing the performance of the Services.
3.2.10.5 Equal Opportunity Employment. Contractor represents that
it is an equal opportunity employer and it shall not discriminate against any subcontractor,
employee or applicant for employment because of race, religion, color, national origin, handicap,
ancestry, sex or age. Such non-discrimination shall include, but not be limited to, all activities
related to initial employment, upgrading, demotion, transfer, recruitment or recruitment
advertising, layoff or termination. Contractor shall also comply with all relevant provisions of
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Commission's Disadvantaged Business Enterprise program, Affirmative Action Plan or other
related programs or guidelines currently in effect or hereinafter enacted.
3.2.10.6 Air Quality. Contractor must fully comply with
all applicable laws, rules and regulations in furnishing or using equipment and/or providing
services, including, but not limited to, emissions limits and permitting requirements imposed by
the California Air Resources Board (CARB). Contractor shall specifically be aware of the
CARB limits and requirements' application to "portable equipment", which definition is
considered by CARB to include any item of equipment with a fuel -powered engine. Contractor
shall indemnify Commission against any fines or penalties imposed by CARB or any other
governmental or regulatory agency for violations of applicable laws, rules and/or regulations by
Contractor, its subcontractors, or others for whom Contractor is responsible under its indemnity
obligations provided for in this Agreement.
3.2.10.7 Water Quality.
(A) Management and Compliance. To the extent applicable,
Contractor's Services must account for, and fully comply with, all local, state and federal laws,
rules and regulations that may impact water quality compliance, including, without limitation, all
applicable provisions of the Federal Water Pollution Control Act (33 U.S.C. §§ 1300); the
California Porter -Cologne Water Quality Control Act (Cal Water Code §§ 13000-14950); laws,
rules and regulations of the Environmental Protection Agency and the State Water Resources
Control Board; the Commission's rules regarding discharges of storm water; and any and all
regulations, policies, or permits issued pursuant to any such authority regulating the discharge of
pollutants, as that term is used in the Porter -Cologne Water Quality Control Act, to any ground
or surface water in the State.
(B) Liability for Non -Compliance. Failure to comply with the
laws, regulations and policies described in this Section is a violation of law that may subject
Contractor or Commission to penalties, fines, or additional regulatory requirements. Contractor
shall defend, indemnify and hold the Commission, its officials, officers, employees, volunteers
and agents free and harmless, pursuant to the indemnification provisions of this Agreement, from
and against any and all fines, penalties, claims or other regulatory requirements imposed as a
result of Contractor's non-compliance with the laws, regulations and policies described in this
Section, unless such non-compliance is the result of the sole established negligence, willful
misconduct or active negligence of the Commission, its officials, officers, agents, employees or
authorized volunteers.
(C) Training. In addition to any other standard of care
requirements set forth in this Agreement, Contractor warrants that all employees and
subcontractors shall have sufficient skill and experience to perform the Services assigned to them
without impacting water quality in violation of the laws, regulations and policies described in
this Section. Contractor further warrants that it, its employees and subcontractors will receive
adequate training, as determined by Commission, regarding the requirements of the laws,
regulations and policies described in this Section as they may relate to the Services provided
under this Agreement. Upon request, Commission will provide Contractor with a list of training
programs that meet the requirements of this paragraph.
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3.2.11 Insurance.
3.2.11.1 Time for Compliance. Contractor shall not commence
work under this Agreement until it has provided evidence satisfactory to the Commission that it
has secured all insurance required under this section, in a form and with insurance companies
acceptable to the Commission. In addition, Contractor shall not allow any subcontractor to
commence work on any subcontract until it has secured all insurance required under this section.
3.2.11.2 Minimum Requirements. Contractor shall, at its expense,
procure and maintain for the duration of the Agreement insurance against claims for injuries to
persons or damages to property which may arise from or in connection with the performance of
the Agreement by the Contractor, its agents, representatives, employees or subcontractors.
Contractor shall also require all of its subcontractors to procure and maintain the same insurance
for the duration of the Agreement. Such insurance shall meet at least the following minimum
levels of coverage:
(A) Minimum Scope of Insurance. Coverage shall be at least as
broad as the latest version of the following: (1) General Liability: Insurance Services Office
Commercial General Liability coverage (occurrence form CG 0001 or exact equivalent); (2)
Automobile Liability: Insurance Services Office Business Auto Coverage (form CA 0001, code 1
(any auto) or exact equivalent); and (3) Workers' Compensation and Employer's Liability:
Workers' Compensation insurance as required by the State of California and Employer's
Liability Insurance.
(B) Minimum Limits of Insurance. Contractor shall maintain
limits no less than: (1) General Liability: $2,000,000 per occurrence for bodily injury, personal
injury and property damage. If Commercial General Liability Insurance or other form with
general aggregate limit is used, either the general aggregate limit shall apply separately to this
Agreement/location or the general aggregate limit shall be twice the required occurrence limit;
(2) Automobile Liability: $1,000,000 per accident for bodily injury and property damage; and (3)
if Contractor has an employees, Workers' Compensation and Employer's Liability: Workers'
Compensation limits as required by the Labor Code of the State of California. Employer's
Practices Liability limits of $1,000,000 per accident.
3.2.11.3 Insurance Endorsements. The insurance policies shall
contain the following provisions, or Contractor shall provide endorsements on forms approved
by the Commission to add the following provisions to the insurance policies:
(A) General Liability.
(i) Commercial General Liability Insurance must
include coverage for (1) bodily Injury and property damage; (2) personal Injury/advertising
Injury; (3) premises/operations liability; (4) products/completed operations liability; (5)
aggregate limits that apply per Project; (6) explosion, collapse and underground (UCX)
exclusion deleted; (7) contractual liability with respect to this Agreement; (8) broad form
property damage; and (9) independent contractors coverage.
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(ii) The policy shall contain no endorsements or
provisions limiting coverage for (1) contractual liability; (2) cross liability exclusion for claims
or suits by one insured against another; or (3) contain any other exclusion contrary to this
Agreement.
(iii) The policy shall give the Commission, its directors,
officials, officers, employees, and agents insured status using ISO endorsement forms 20 10 10
01 and 20 37 10 01, or endorsements providing the exact same coverage.
(iv) The additional insured coverage under the policy
shall be "primary and non-contributory" and will not seek contribution from the Commission's
insurance or self-insurance and shall be at least as broad as CG 20 01 04 13, or endorsements
providing the exact same coverage.
(v) The policy shall not include any restrictions related
to indemnity for work performed within fifty (50) feet of Commission's railroad right-of-
way/tracks.
(B) Automobile Liability. The automobile liability policy shall
be endorsed to state that: (1) the Commission, its directors, officials, officers, employees and
agents shall be covered as additional insureds with respect to the ownership, operation,
maintenance, use, loading or unloading of any auto owned, leased, hired or borrowed by the
Contractor or for which the Contractor is responsible; and (2) the insurance coverage shall be
primary insurance as respects the Commission, its directors, officials, officers, employees and
agents, or if excess, shall stand in an unbroken chain of coverage excess of the Contractor's
scheduled underlying coverage. Any insurance or self-insurance maintained by the Commission,
its directors, officials, officers, employees and agents shall be excess of the Contractor's
insurance and shall not be called upon to contribute with it in any way.
(C) Workers' Compensation and Employers Liability
Coverage.
(i) Contractor certifies that he/she is aware of the
provisions of Section 3700 of the California Labor Code which requires every employer to be
insured against liability for workers' compensation or to undertake self-insurance in accordance
with the provisions of that code, and he/she will comply with such provisions before
commencing work under this Agreement.
(ii) The insurer shall agree to waive all rights of
subrogation against the Commission, its directors, officials, officers, employees and agents for
losses paid under the terms of the insurance policy which arise from work performed by the
Contractor.
(D) Railroad Protective Liability. In addition to the policies
specified above, prior to commencing any Task Order work within (50) feet of Commission's
railroad right-of-way/tracks, Contractor shall acquire and keep in force during the period of such
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work $2,000,000 (combined single limit)/ $6,000,000 (aggregate limit) of railroad protective
liability insurance naming only Commission as the insured.
(E) All Coverages.
(i)
limits set forth hereunder.
Defense costs shall be payable in addition to the
(ii) Requirements of specific coverage or limits
contained in this section are not intended as a limitation on coverage, limits, or other
requirement, or a waiver of any coverage normally provided by any insurance. It shall be a
requirement under this Agreement that any available insurance proceeds broader than or in
excess of the specified minimum insurance coverage requirements and/or limits set forth herein
shall be available to the Commission, its directors, officials, officers, employees and agents as
additional insureds under said policies. Furthermore, the requirements for coverage and limits
shall be (1) the minimum coverage and limits specified in this Agreement; or (2) the broader
coverage and maximum limits of coverage of any insurance policy or proceeds available to the
named insured; whichever is greater.
(iii) The limits of insurance required in this Agreement
may be satisfied by a combination of primary and umbrella or excess insurance. Any umbrella or
excess insurance shall contain or be endorsed to contain a provision that such coverage shall also
apply on a primary and non-contributory basis for the benefit of the Commission (if agreed to in
a written contract or agreement) before the Commission's own insurance or self-insurance shall
be called upon to protect it as a named insured. The umbrella/excess policy shall be provided on
a "following form" basis with coverage at least as broad as provided on the underlying
policy(ies).
(iv) Contractor shall provide the Commission at least
thirty (30) days prior written notice of cancellation of any policy required by this Agreement,
except that the Contractor shall provide at least ten (10) days prior written notice of cancellation
of any such policy due to non-payment of premium. If any of the required coverage is cancelled
or expires during the term of this Agreement, the Contractor shall deliver renewal certificate(s)
including the General Liability Additional Insured Endorsement to the Commission at least ten
(10) days prior to the effective date of cancellation or expiration.
(v) The retroactive date (if any) of each policy is to be
no later than the effective date of this Agreement. Contractor shall maintain such coverage
continuously for a period of at least three years after the completion of the work under this
Agreement. Contractor shall purchase a one (1) year extended reporting period A) if the
retroactive date is advanced past the effective date of this Agreement; B) if the policy is
cancelled or not renewed; or C) if the policy is replaced by another claims -made policy with a
retroactive date subsequent to the effective date of this Agreement.
(vi) The foregoing requirements as to the types and
limits of insurance coverage to be maintained by Contractor, and any approval of said insurance
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by the Commission, is not intended to and shall not in any manner limit or qualify the liabilities
and obligations otherwise assumed by the Contractor pursuant to this Agreement, including but
not limited to, the provisions concerning indemnification.
(vii) If at any time during the life of the Agreement, any
policy of insurance required under this Agreement does not comply with these specifications or
is canceled and not replaced, Commission has the right but not the duty to obtain the insurance it
deems necessary and any premium paid by Commission will be promptly reimbursed by
Contractor or Commission will withhold amounts sufficient to pay premium from Contractor
payments. In the alternative, Commission may cancel this Agreement. The Commission may
require the Contractor to provide complete copies of all insurance policies in effect for the
duration of the Project.
(viii) Neither the Commission nor any of its directors,
officials, officers, employees or agents shall be personally responsible for any liability arising
under or by virtue of this Agreement.
Each insurance policy required by this Agreement shall be
endorsed to state that:
3.2.11.4 Deductibles and Self -Insurance Retentions. Any
deductibles or self -insured retentions must be declared to and approved by the Commission. If
the Commission does not approve the deductibles or self -insured retentions as presented,
Contractor shall guarantee that, at the option of the Commission, either: (1) the insurer shall
reduce or eliminate such deductibles or self -insured retentions as respects the Commission, its
directors, officials, officers, employees and agents; or, (2) the Contractor shall procure a bond
guaranteeing payment of losses and related investigation costs, claims and administrative and
defense expenses.
3.2.11.5 Acceptability of Insurers. Insurance is to be placed with
insurers with a current A.M. Best's rating no less than A:VIII, licensed to do business in
California, and satisfactory to the Commission.
3.2.11.6 Verification of Coverage. Contractor shall furnish
Commission with original certificates of insurance and endorsements effecting coverage required
by this Agreement on forms satisfactory to the Commission. The certificates and endorsements
for each insurance policy shall be signed by a person authorized by that insurer to bind coverage
on its behalf. All certificates and endorsements must be received and approved by the
Commission before work commences. The Commission reserves the right to require complete,
certified copies of all required insurance policies, at any time.
3.2.11.7 Subcontractor Insurance Requirements. Contractor shall not
allow any subcontractors or subcontractors to commence work on any subcontract until they
have provided evidence satisfactory to the Commission that they have secured all insurance
required under this section. Policies of commercial general liability insurance provided by such
subcontractors or subcontractors shall be endorsed to name the Commission as an additional
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insured using ISO form CG 20 38 04 13 or an endorsement providing the exact same coverage.
If requested by Contractor, the Commission may approve different scopes or minimum limits of
insurance for particular subcontractors or subcontractors.
3.2.12 Safety. Contractor shall execute and maintain its work so as to
avoid injury or damage to any person or property. In carrying out its Services, the Contractor
shall at all times be in compliance with all applicable local, state and federal laws, rules and
regulations, and shall exercise all necessary precautions for the safety of employees appropriate
to the nature of the work and the conditions under which the work is to be performed. Safety
precautions as applicable shall include, but shall not be limited to: (A) adequate life protection
and life saving equipment and procedures; (B) instructions in accident prevention for all
employees and subcontractors, such as safe walkways, scaffolds, fall protection ladders, bridges,
gang planks, confined space procedures, trenching and shoring, equipment and other safety
devices, equipment and wearing apparel as are necessary or lawfully required to prevent
accidents or injuries; and (C) adequate facilities for the proper inspection and maintenance of all
safety measures.
3.2.13 Accounting Records. Contractor shall maintain complete and accurate
records with respect to all costs and expenses incurred under this Agreement. All such records
shall be clearly identifiable. Contractor shall allow a representative of Commission during
normal business hours to examine, audit, and make transcripts or copies of such records and any
other documents created pursuant to this Agreement. Contractor shall allow inspection of all
work, data, documents, proceedings, and activities related to the Agreement for a period of three
(3) years from the date of final payment under this Agreement.
3.3 Fees and Payments; Labor Code Requirements; Bonds
3.3.1 Compensation. Contractor shall receive compensation, including
authorized reimbursements, for all Services rendered under this Agreement at the rates set forth
in Exhibit "B" attached hereto and incorporated herein by reference, or at the lump sum set forth
in a Task Order, in accordance with the terms of the relevant Task Order. The total
compensation per Task Order shall be set forth in the relevant Task Order, and shall not exceed
said amount without the written approval of the Commissioner's Executive Director. The total
value each Task Order shall be set forth in the relevant Task Order. Extra Work may be
authorized, as described below, and if authorized, will be compensated at the rates and manner
set forth in this Agreement.
3.3.2 NTE Sum. Commission has or will enter into three (3) task order
contracts for the Services generally identified in Exhibit "A" ("On -Call Maintenance and Repair
Services Task Order Contracts"). The other On -Call Maintenance and Repair Services Task
Order Contract is Agreement No. 24-24-034-00 to 4D Surface Management, Inc. and Agreement
No. 24-24-049-00 to Joshua Grading & Excavating. The total amount payable by Commission
for the On -Call Maintenance and Repair Services Task Order Contracts shall not exceed a
cumulative maximum total value of $XXXXXXX ("NTE Sum"). It is understood and agreed
that there is no guarantee, either expressed or implied that this dollar amount will be authorized
under the On -Call Maintenance and Repair Services Task Order Contracts through Task
Orders. Each time a Task Order is awarded under any of the On -Call Maintenance and Repair
Services Task Order Contracts, the Commission shall send written notification to Contractor and
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each of the other Contracts. The notice shall identify the total funds allocated under issued Task
Orders, and the remaining unencumbered amount of the NTE Sum. Contractor acknowledges
and agrees that Commission shall not pay any amount under this Agreement that would exceed
the NTE Sum, and Contractor shall not knowingly enter into a Task Order that exceeds the NTE
Sum.
3.3.3 Payment of Compensation. Contractor shall submit to Commission a
monthly itemized statement which indicates work completed and hours of Services rendered by
Contractor. The statement shall describe the amount of Services and supplies provided since the
initial commencement date, or since the start of the subsequent billing periods, as appropriate,
through the date of the statement. Commission shall, within 45 days of receiving such
statement, review the statement and pay all approved charges thereon.
3.3.4 Reimbursement for Expenses. Contractor shall not be reimbursed for any
expenses unless authorized in writing by Commission.
3.3.5 Extra Work. At any time during the term of this Agreement, Commission
may request that Contractor perform Extra Work. As used herein, "Extra Work" means any
work which is determined by Commission to be necessary for the proper completion of the
Project, but which the parties did not reasonably anticipate would be necessary at the execution
of this Agreement. Contractor shall not perform, nor be compensated for, Extra Work without
written authorization from Commission's Representative.
3.3.6 Prevailing Wages. Contractor is aware of the requirements of California
Labor Code Section 1720, et seq., and 1770, et seq., as well as California Code of Regulations,
Title 8, Section 16000, et seq., ("Prevailing Wage Laws"), which require the payment of
prevailing wage rates and the performance of other requirements on "public works" and
"maintenance" projects. Since the Services are being performed as part of an applicable "public
works" or "maintenance" project, as defined by the Prevailing Wage Laws, and if the total
compensation is $15,000 or more, Contractor agrees to fully comply with such Prevailing Wage
Laws. Commission shall provide Contractor with a copy of the prevailing rates of per diem
wages in effect at the commencement of this Agreement. Contractor shall make copies of the
prevailing rates of per diem wages for each craft, classification or type of worker needed to
execute the Services available to interested parties upon request, and shall post copies at the
Contractor's principal place of business and at the project site. Contractor shall defend,
indemnify and hold the Commission, its officials, officers, employees and agents free and
harmless from any claim or liability arising out of any failure or alleged failure to comply with
the Prevailing Wage Laws.
3.3.6 Payroll Records. In accordance with the requirements of California Labor
Code Section 1776, Contractor shall keep accurate payroll records which are either on forms
provided by the Division of Labor Standards Enforcement or which contain the same
information required by such forms. Responsibility for compliance with California Labor Code
Section 1776 shall rest solely with Contractor, and Contractor shall make all such records
available for inspection at all reasonable hours.
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3.3.7 Registration. Since the Services are being performed as part of an
applicable "public works" or "maintenance" project, pursuant to Labor Code Sections 1725.5
and 1771.1, the Contractor and all subcontractors must be registered with the Department of
Industrial Relations. Contractor shall maintain registration for the duration of the Project and
require the same of any subcontractor. This Project may also be subject to compliance
monitoring and enforcement by the Department of Industrial Relations. It shall be Contractor's
sole responsibility to comply with all applicable registration and labor compliance requirements.
3.3.8 Employment of Apprentices. This Agreement shall not prevent the
employment of properly indentured apprentices in accordance with the California Labor Code,
and no employer or labor union shall refuse to accept otherwise qualified employees as
indentured apprentices on the work performed hereunder solely on the ground of race, creed,
national origin, ancestry, color or sex. Every qualified apprentice shall be paid the standard
wage paid to apprentices under the regulations of the craft or trade in which he or she is
employed and shall be employed only in the craft or trade to which he or she is registered.
If California Labor Code Section 1777.5 applies to the Services, Contractor and
any subcontractor hereunder who employs workers in any apprenticeable craft or trade shall
apply to the joint apprenticeship council administering applicable standards for a certificate
approving Contractor or any sub -contractor for the employment and training of apprentices.
Upon issuance of this certificate, Contractor and any sub -contractor shall employ the number of
apprentices provided for therein, as well as contribute to the fund to administer the
apprenticeship program in each craft or trade in the area of the work hereunder.
The parties expressly understand that the responsibility for compliance with
provisions of this Section and with Sections 1777.5, 1777.6 and 1777.7 of the California Labor
Code in regard to all apprenticeable occupations lies with Contractor.
3.3.9 Eight -Hour Law. Pursuant to the provisions of the California Labor Code,
eight hours of labor shall constitute a legal day's work, and the time of service of any worker
employed on the work shall be limited and restricted to eight hours during any one calendar day,
and forty hours in any one calendar week, except when payment for overtime is made at not less
than one and one-half the basic rate for all hours worked in excess of eight hours per day
("Eight -Hour Law"), unless Contractor or the Services are not subject to the Eight -Hour Law.
Contractor shall forfeit to Commission as a penalty, $50.00 for each worker employed in the
execution of this Agreement by him, or by any sub -contractor under him, for each calendar day
during which such workman is required or permitted to work more than eight hours in any
calendar day and forty hours in any one calendar week without such compensation for overtime
violation of the provisions of the California Labor Code, unless Contractor or the Services are
not subject to the Eight -Hour Law.
3.3.10 Bonds.
3.3.10.1 Payment Bond. If requested by the Commission as part of
a Task Order proposal request, Contractor shall execute and provide to the Commission
concurrently with the executed Task Order a payment bond in an amount required by the
Commission and in a form provided or approved by the Commission. If such bond is required,
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no payment will be made to Contractor until the bond has been received and approved by the
Commission.
3.3.10.2 Bond Provisions. Should, in the Commission's sole
opinion, any bond become insufficient or any surety be found to be unsatisfactory, Contractor
shall renew or replace the affected bond within (ten) 10 days of receiving notice from
Commission. In the event the surety or Contractor intends to reduce or cancel any required
bond, at least thirty (30) days prior written notice shall be given to the Commission, and
Contractor shall post an acceptable replacement bond at least ten (10) days prior to expiration of
the original bond. No further payments shall be deemed due or will be made under the relevant
Task Order until any replacement bond required by this section are accepted by the Commission.
To the extent, if any, that the total price under a Task Order requiring a bond is increased in
accordance with this Agreement, the Contractor shall, upon request of the Commission, cause the
amount of the bond to be increased accordingly and shall promptly deliver satisfactory evidence
of such increase to the Commission.
3.3.10.3 Surety Qualifications. Only bonds executed by an admitted
surety insurer, as defined in California Code of Civil Procedure Section 995.120, shall be
accepted. The surety must be a California -admitted surety and satisfactory to the Commission.
If a California -admitted surety insurer issuing bonds does not meet these requirements, the
insurer will be considered qualified if it is in conformance with Section 995.660 of the California
Code of Civil Procedure, and proof of such is provided to the Commission.
3.4 Termination of Agreement.
3.4.1 Grounds for Termination. Commission may, by written notice to
Contractor, terminate the whole or any part of this Agreement at any time and without cause by
giving written notice to Contractor of such termination, and specifying the effective date thereof,
at least seven (7) days before the effective date of such termination. Upon termination,
Contractor shall be compensated only for those services which have been adequately rendered to
Commission, and Contractor shall be entitled to no further compensation. Contractor may not
terminate this Agreement except for cause.
3.4.2 Effect of Termination. If this Agreement is terminated as provided herein,
Commission may require Contractor to provide all finished or unfinished Documents and Data
and other information of any kind prepared by Contractor in connection with the performance of
Services under this Agreement. Contractor shall be required to provide such document and other
information within fifteen (15) days of the request.
3.4.3 Additional Services. In the event this Agreement is terminated in whole
or in part as provided herein, Commission may procure, upon such terms and in such manner as
it may determine appropriate, services similar to those terminated.
3.5 General Provisions.
3.5.1 Delivery of Notices. All notices permitted or required under this
Agreement shall be given to the respective parties at the following address, or at such other
address as the respective parties may provide in writing for this purpose:
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CONSULTANT:
Real Estate Consulting & Services, Inc.
18345 Pasadena St
Lake Elsinore, CA 92530
Attn: Jeffery A. Coss
COMMISSION:
Riverside County
Transportation Commission
4080 Lemon Street, 3rd Floor
Riverside, CA 92501
Attn: Executive Director
Such notice shall be deemed made when personally delivered or when mailed,
forty-eight (48) hours after deposit in the U.S. Mail, first class postage prepaid and addressed to
the party at its applicable address. Actual notice shall be deemed adequate notice on the date
actual notice occurred, regardless of the method of service.
3.5.2 Indemnification.
3.5.2.1 Scope of Indemnity. To the fullest extent permitted by law,
Contractor shall defend, indemnify and hold the Commission, its officials, officers, employees,
volunteers and agents free and harmless from any and all claims, demands, causes of action,
costs, expenses, liability, loss, damage or injury of any kind, in law or equity, to property or
persons, including wrongful death, in any manner arising out of, pertaining to, or incident to any
alleged acts, errors or omissions of Contractor, its officials, officers, employees, subcontractors,
contractors or agents in connection with the performance of the Services, the Project, this
Agreement or any Task Order, including without limitation the payment of all consequential
damages, expert witness fees and attorneys' fees and other related costs and expenses. The only
limitations on this provision shall be those imposed by Civil Code Section 2782.
3.5.2.2 Additional Indemnity Obligations. Contractor shall defend, with
Counsel of Commission's choosing and at Contractor's own cost, expense and risk, any and all
claims, suits, actions or other proceedings of every kind covered by Section 3.5.2.1 that may be
brought or instituted against Commission or its officials, officers, employees, volunteers and
agents. Contractor shall pay and satisfy any judgment, award or decree that may be rendered
against Commission or its officials, officers, employees, volunteers and agents as part of any
such claim, suit, action or other proceeding. Contractor shall also reimburse Commission for the
cost of any settlement paid by Commission or its officials, officers, employees, agents or
volunteers as part of any such claim, suit, action or other proceeding. Such reimbursement shall
include payment for Commission's attorneys' fees and costs, including expert witness fees.
Contractor shall reimburse Commission and its officials, officers, employees, agents, and/or
volunteers, for any and all legal expenses and costs incurred by each of them in connection
therewith or in enforcing the indemnity herein provided. Contractor's obligation to indemnify
shall survive expiration or termination of this Agreement, and shall not be restricted to insurance
proceeds, if any, received by the Commission, its officials officers, employees, agents, or
volunteers.
3.5.3 Governing Law; Government Code Claim Compliance. This Agreement
shall be governed by the laws of the State of California. Venue shall be in Riverside County. In
addition to any and all contract requirements pertaining to notices of and requests for
compensation or payment for extra work, disputed work, claims and/or changed conditions,
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Contractor must comply with the claim procedures set forth in Government Code sections 900 et
seq. prior to filing any lawsuit against the Commission. Such Government Code claims and any
subsequent lawsuit based upon the Government Code claims shall be limited to those matters
that remain unresolved after all procedures pertaining to extra work, disputed work, claims,
and/or changed conditions have been followed by Contractor. If no such Government Code
claim is submitted, or if any prerequisite contractual requirements are not otherwise satisfied as
specified herein, Contractor shall be barred from bringing and maintaining a valid lawsuit against
the Commission.
3.5.4 Time of Essence. Time is of the essence for each and every provision of
this Agreement.
3.5.5 Commission's Right to Employ Other Contractors. Commission reserves
right to employ other contractors in connection with this Project.
3.5.6 Successors and Assigns. This Agreement shall be binding on the
successors and assigns of the parties.
3.5.7 Assignment or Transfer. Contractor shall not assign, hypothecate or
transfer, either directly or by operation of law, this Agreement or any interest herein without the
prior written consent of the Commission. Any attempt to do so shall be null and void, and any
assignees, hypothecates or transferees shall acquire no right or interest by reason of such
attempted assignment, hypothecation or transfer. Subcontracts, if any, shall contain a provision
making them subject to all provisions stipulated in this Agreement.
3.5.8 Construction; References; Captions. Since the Parties or their agents have
participated fully in the preparation of this Agreement, the language of this Agreement shall be
construed simply, according to its fair meaning, and not strictly for or against any Party. Any
term referencing time, days or period for performance shall be deemed calendar days and not
work days. All references to Contractor include all personnel, employees, agents, and
subcontractors of Contractor, except as otherwise specified in this Agreement. All references to
Commission include its officials, officers, employees, agents, and volunteers except as otherwise
specified in this Agreement. The captions of the various articles and paragraphs are for
convenience and ease of reference only, and do not define, limit, augment, or describe the scope,
content or intent of this Agreement.
3.5.9 Amendment; Modification. No supplement, modification or amendment
of this Agreement shall be binding unless executed in writing and signed by both Parties.
3.5.10 Waiver. No waiver of any default shall constitute a waiver of any other
default or breach, whether of the same or other covenant or condition. No waiver, benefit,
privilege, or service voluntarily given or performed by a Party shall give the other Party any
contractual rights by custom, estoppel or otherwise.
3.5.11 No Third Party Beneficiaries. Except to the extent expressly provided for
in Section 3.5.7, there are no intended third party beneficiaries of any right or obligation assumed
by the Parties.
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3.5.12 Invalidity; Severability. If any portion of this Agreement is declared
invalid, illegal, or otherwise unenforceable by a court of competent jurisdiction, the remaining
provisions shall continue in full force and effect.
3.5.13 Prohibited Interests. Contractor maintains and warrants that it has not
employed nor retained any company or person, other than a bona fide employee working solely
for Contractor, to solicit or secure this Agreement. Further, Contractor warrants that it has not
paid nor has it agreed to pay any company or person, other than a bona fide employee working
solely for Contractor, any fee, commission, percentage, brokerage fee, gift or other consideration
contingent upon or resulting from the award or making of this Agreement. Contractor further
agrees to file, or shall cause its employees or subcontractors to file, a Statement of Economic
Interest with the Commission's Filing Officer as required under state law in the performance of
the Services. For breach or violation of this warranty, Commission shall have the right to rescind
this Agreement without liability. For the term of this Agreement, no member, officer or
employee of Commission, during the term of his or her service with Commission, shall have any
direct interest in this Agreement, or obtain any present or anticipated material benefit arising
therefrom.
3.5.14 Cooperation; Further Acts. The Parties shall fully cooperate with one
another, and shall take any additional acts or sign any additional documents as may be necessary,
appropriate or convenient to attain the purposes of this Agreement.
3.5.15 Authority to Enter Agreement. Contractor has all requisite power and
authority to conduct its business and to execute, deliver, and perform the Agreement. Each Party
warrants that the individuals who have signed this Agreement have the legal power, right, and
authority to make this Agreement and bind each respective Party.
3.5.16 Counterparts. This Agreement may be signed in counterparts, each of
which shall constitute an original.
3.5.17 Entire Agreement. This Agreement contains the entire Agreement of the
parties with respect to the subject matter hereof, and supersedes all prior negotiations,
understandings or agreements. This Agreement may only be modified by a writing signed by
both parties.
3.5.18 Federal Provisions. Funding for Services under a Task Order may be
provided, in whole or in part, by the Federal Transportation Administration ("FTA"), by the
California Department of Transportation (Caltrans), or by the South Coast Air Quality
Management District ("SCAQMD"). Contractor shall also fully and adequately comply with the
FTA, Caltrans and SCAQMD provisions included in Exhibit "C" (Funding Agency
Requirements) attached hereto and incorporated herein by reference ("Funding Agency
Requirements"), as applicable based on the funding source for the relevant Task Order. With
respect to any conflict between such Funding Agency Requirements and the terms of this
Agreement and/or the provisions of state law, the more stringent requirement shall control.
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SIGNATURE PAGE FOR ON -CALL MAINTENANCE AND REPAIR SERVICES
AGREEMENT
BETWEEN THE RIVERSIDE COUNTY TRANSPORTATION COMMISSION
AND REAL ESTATE CONSULTING & SERVICES, INC.
IN WITNESS WHEREOF, the Parties have entered into this Agreement as of the date
first set forth above.
RIVERSIDE COUNTY CONTRACTOR
TRANSPORTATION COMMISSION
Anne Mayer
Executive Director
Approved as to form:
Best Best & Krieger LLP
General Counsel
Signature
Name
Title
ATTEST:
Signature
Name
Title
A corporation requires the signatures of two corporate officers. One signature shall be that of the
chairman of board, the president or any vice president and the second signature (on the attest
line) shall be that of the secretary, any assistant secretary, the chief financial officer or any
assistant treasurer of such corporation.
If the above referenced persons are not the intended signators, evidence of signature authority
shall be provided to Commission.
17336.00600\32785614.1
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499
EXHIBIT "A" - SCOPE OF SERVICES
17336.00600\32785614.1
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STATEMENT OF SERVICES
A. SCHEDULING OF WORK
The Contractor shall accomplish all routine maintenance required under
this Contract between the hours of 8:00 a.m. and 3:30 p.m. Monday through
Friday unless otherwise authorized or directed by the Commission. The
Commission may provide, on an individual basis, permission to perform
maintenance at other hours or on the weekends.
B. PROCEDURES FOR THE DEVELOPMENT OF TASK ORDERS
1. The Commission will provide the Contractor with a description of Work it
wishes Contractor to perform under this Contract. The description
shall include sufficient detail to permit the Contractor to provide a Task
Order Price, including the ability to cost any special insurance, bonding
or other costs associated with the requested Work.
2. As needs arise, the Commission will develop a brief scope of work and
select a consultant from the list of bench consultants depending on the
type of support needed and the qualifications of the firm. The selected
consultant will respond by providing information about the level of effort
required to perform the required services. This will be documented on a
pre -approved Contract Task Order (CTO). Rates and cost for each CTO
will be in accordance with rates indicated in the price schedules. Upon
approval by the Commission's Project Manager, a CTO will be issued on
a time and expense basis. The consultant will be required to commence
work within five days or sooner after receiving a fully executed CTO.
3. The Commission and Contractor will work cooperatively to address any
issues and negotiate a final Task Order and Task Order Price. Such
negotiations shall be limited to the price and the scope of Work to be
performed.
4. The Commission shall prepare, sign and deliver to the Contractor for
signature a Task Order consistent with the negotiations and include
sufficient exhibits and documentation to fully memorialize the
understanding of the parties with respect to price and the Scope of Work
to be performed under the Task Order.
5. The Contractor shall sign and deliver to the Commission the signed
copies of the Task Order within two (2) days of receipt of a Task Order
executed by an authorized representative of the Commission.
6. Unless otherwise provided for within the Task Order, the Contractor shall
commence the Work provided for in the Task Order within five (5) days
17336.00600\32785614.1
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of Contractor's delivery of the fully executed Task Order to Commission,
and without the need for further notice or authorization by the
Commission.
C. STORM WATER POLLUTION PREVENTION PROGRAM (SWPPP)
1. Contractor shall ensure that all employees and subcontractor employees
are trained and are aware of the following Site Specific Storm
Water Pollution Prevention Requirements:
a. No discharge of fertilizers, pesticide, and wastes into street or
storm drains;
b. No blowing or sweeping debris into street or storm drains;
c. No hosing down of the parking lot;
d. No vehicle washing or maintenance on site;
e. Close dumpster lids at all time;
f. No disposing of wash water into street or storm drains; and
g. Remove all foreign objects (leaves, cans, cigarette butts, paper
etc.) from in front of drainage inlets and gutter areas.
2. The Contractor shall provide annual refresher training on the Site Specific
Storm Water Pollution Prevention Requirements to its employees and
subcontractors.
3. The Contractor shall document the training on the attached Site Specific
Storm Water Pollution Prevention Training Log and provide it annually
to RCTC. Form included.
D. CHEMICALS
1. Contractor shall provide a list of all chemicals that are proposed to be used
on the project. This list shall be submitted to RCTC for review and
approval, prior to use of the chemicals.
2. Contractor shall provide Material Safety Data Sheets (MSDS) for all
chemicals that are to be used on the project.
3. Contractor shall ensure the field crews carry copies of the MSDS for all
chemicals they have while on -site.
4. Contractor is encouraged to use bio-degradable or environmentally friendly
chemicals.
5. Contractor shall ensure that all employees are properly trained in the use
and handling of the approved chemicals.
6. Contractor shall ensure that all employees, including subcontractors, utilize
the proper PPE as specified by the chemical or the Contractor's safety
plan, whichever is most stringent.
17336.00600\32785614.1
502
ON -CALL MAINTENANCE
The following list is a non -exhaustive list of tasks that may be requested to be
provided by the Contractor:
A. POTENTIAL FUTURE MAINTENANCE OUTSIDE OF RAILROAD
RIGHT-OF-WAY AND TOLL FACILITIES
1. Asphalt repairs within parking lot or bus lane -cold patch or saw cut,
removal and placement of hot mix, place guard top slurry seal.
2. Parking stalls striping or stenciling.
3. Concrete curb painting.
4. Concrete wheel stop removal, replacement, purchase, and
installation.
5. Miscellaneous painting touch up on canopies, towers, benches,
handrail/guardrail, trash cans, trash dumpster gates, walls inside of
the pedestrian overcrossings, light poles, monuments and other
areas as necessary.
6. Repairs to the walls inside of the pedestrian overcrossings.
7. Repairs to Stucco walls and columns.
8. Clean out plugged drains- toilet, sink, platform, and drinking
faucets.
9. Repair, patch, or replace damaged concrete curb, gutter, platform,
sidewalk, handicap ramps, mini -ramps, stairs, color concrete, etc.
10. Repair or patch roofing.
11. Remove, replace, purchase, and install Station Signage on post,
light poles, CCTV poles, columns, and walls
12. Perform various plumbing maintenance/repairs - locate water leaks,
repair leaking pipe, replace old or. damaged bathroom fixtures,
replace old or damaged drinking fountains and hose bibs, and other
work as necessary
13. Remove, clean, and place anti -slip floor treatment.
14. Remove or relocate bike lockers and racks.
15. Repair and or replace bike storage facilities and racks.
16. Replace or repair trash receptacles.
17. Place new concrete or asphalt as directed.
18. Repair and replace ADA ramps, pathways using current standards
19. Remove, replace, relocate, or install new bollards - steel and
concrete.
20. Provide forces and equipment to unload and place heavy or large
items purchased for use at the stations i.e. kiosks, benches, bike
racks, bike lockers, furniture, etc.
21. Paint Canopies and Canopy columns.
22. Repair, or perform maintenance on Storm Drain Curb Inlets and
manholes.
23. Maintenance or repairs to Water main lines and laterals.
17336.00600\32785614.1
503
24 Maintenance or repairs to sewer main lines and laterals.
25 Maintenance or repairs to the Station fire hydrants.
26 Purchase and install box drains and place drain lines in landscape
planters at Downtown Riverside Station.
27 Purchase and install window treatments - solar shades or window
tint in security room.
28 Maintain, Install, Repair Solar Panels, carport structures, flagpoles,
Guard Shacks, and Doors.
29 Maintenance, repairs, or painting of Light Poles.
30 Concrete pour inspections, roadway maintenance/repair, and sign
installation as needed and allowable.
31 Other repairs/replacement and maintenance as requested.
32 Repair and service Commission owned assets as needed:
Generators, Solar equipment, Elevators, Parking structures and
other equipment
33 Modernize/Improve station equipment assets as required and
needed: Elevators, Generators, Parking structures, Solar equipment
for Commission owned assets, and other equipment
B. POTENTIAL FUTURE MAINTENANCE WITHIN THE RAILROAD
RIGHT- OF -WAY OR WORK WITH THE POTENTIAL TO FOUL THE
TRACK
1. Repair or replace at -grade pedestrian crossings at the ends of the
platforms.
2. Repair rolling or sliding gates at the Stations at -grade pedestrian
crossings.
3. Perform maintenance or repairs on the outside of Pedestrian
Bridge and Towers.
4. Perform electrical maintenance or repairs on light poles near the
railroad tracks, on neon signs located on the Pedestrian Bridges,
etc.
5. Repair or patch roofing on Pedestrian Bridges.
6. Paint or touch up Pedestrian Bridge and Towers.
7. Remove, purchase, and install new windows or revised window
system within Pedestrian Bridge.
8. Install anti -bird devices on Pedestrian Bridge and Towers.
9. Pressure wash and/or clean Pedestrian Bridge and Towers.
10. Remove CCTV Camera Poles from between the tracks.
11. Repair Damaged Platform Canopies.
12. Repair or replace Tactile Tile along Station platforms.
13. Repair / Maintenance to concrete platforms.
14. Repair / Maintenance and painting of handrail/guardrail.
15. Repair / Maintenance and painting of center line track fence
between Main Line 1 and Main Line 2 tracks.
17336.00600\32785614.1
504
16. Maintenance to ballast at end of platforms or around at -grade
pedestrian crossings.
17. Repair, clean, maintenance to Platform drains.
18. Remove, replace, or place new Signage at the ends of the Station
platforms.
19. Remove, replace, or place new Painted striping and lettering on
concrete platform within railroad right-of-way.
20. Repair plumbing leaks within concrete platforms.
21. Power wash sidewalks, platforms, and canopies
22. Other repairs/maintenance as requested.
STATION LOCATIONS
West Corona Metrolink Station
155 S. Auto Center Drive
Corona, CA 92880
La Sierra Station
10901-A Indiana Ave
Riverside, CA 92503
Pedley Station
6001 Pedley Road
Riverside, CA 92509
Hunter Park Station
1101 Marlborough Avenue
Riverside, CA 92507
South Perris Station
1304 Case Road
Perris, CA 92510
Operations Control Center
4344 Vine Street
Riverside CA, 92507
North Main Corona Station
250 E. Blaine Street
Corona, CA 92879
La Sierra Bus Station
10901-B Indiana Ave
Riverside, CA 92503
Perris Downtown Station
121 South C Street
Perris, CA 92570
Moreno Valley/MF Station
14160 Meridian Parkway
Riverside, CA 92518
Riverside Downtown
4066 Vine Street
Riverside, CA 92507
17336.00600\32785614.1
505
TOLL FACILITIES
FAM ROC
120 N. Joy Street 301 Corporate Terrace
Corona, CA 92879 Corona, CA 92879
15 Toll Rd Office
291 Corporate Terrace
Corona, CA 92879
Toll TUB Westbound 91
West Bound 91
Center Divide
Toll TUB Eastbound 91
East Bound 91
Center divide
17336.00600\32785614.1
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EXHIBIT "B" -COMPENSATION RATES
17336.00600\32785614.1
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EXHIBIT "C"- FUNDING AGENCY REQUIREMENTS
17336.00600\32785614.1
508
AGENDA ITEM 6F
RIVERSIDE COUNTY TRANSPORTATION COMMISSION
DATE:
January 10, 2024
TO:
Riverside County Transportation Commission
FROM:
Martha Masters, Senior Management Analyst
Jenny Chan, Planning and Programming Manager
THROUGH:
Anne Mayer, Executive Director
SUBJECT:
Riverside County 2025 Federal Transportation
Financial Resolution
Improvement
Program
STAFF RECOMMENDATION:
This item is for the Commission to:
1) Adopt Resolution No. 24-001, "Resolution of the Riverside County Transportation
Commission Certifying Riverside County has Resources to Fund Projects in the Federal
Fiscal Years 2024/25 Through 2029/30 Transportation Improvement Program and
Affirming Commitment to Implement All Projects and Phases as Applicable in the
Program".
BACKGROUND INFORMATION:
The Federal Transportation Improvement Program (FTIP) is a federally required document that
lists transportation projects funded with federal, state, and local funds for the next six -year
period. The Southern California Association of Governments (SCAG) is responsible for
preparing the FTIP every two years for the six counties within the SCAG region and for
performing the following five conformity tests:
• Consistency with SCAG's Regional Transportation Plan/Sustainable Communities
Strategy (RTP/SCS);
• Regional Emission Analysis;
• Timely Implementation of Transportation Control Measures (TCM);
• Financial Constraint; and
• Interagency Consultation and Public Involvement.
The 2025 FTIP update covers Federal Fiscal Years (FFYs) 2024/25 through 2029/30 and reflects
projects listed in the 2024 RTP/SCS. All federal- and state -funded projects must be included in
the FTIP prior to spending federal funds.
The attached resolution must be included in the 2025 FTIP to certify the Riverside County
portion of the FTIP is financially constrained and to affirm the commitment to implement the
projects. Financial constraint and project commitment is defined as follows:
Agenda Item 6F
509
1. Financial Constraint: The Commission must certify the Riverside County Transportation
Improvement Program is financially constrained (projects are not programmed in excess
of funding levels) and the funding may be reasonably expected to carry out the
program.
2. Project Commitment: The Commission must affirm its highest priorities for funding are
the projects in the 2025 FTIP. The affirmation is specifically targeted to enforceable
TCMs, which are critical to meeting air quality and transportation conformity, as
required by federal and state law.
Over the past three months, staff reviewed projects submitted by Caltrans, local agencies, and
transit operators in Riverside County. This review included projects on freeways, state
highways, arterials, routes that provide access to major activity centers, goods movement
routes, intermodal facilities, and fixed transit routes. Projects that have completed
construction were identified and removed from the 2025 FTIP, while other projects were
added, deleted, or modified at the request of project sponsors. All project programming was
reviewed with project sponsors to ensure each project clearly identifies funding sources and
schedules.
There are 19 TCM projects in the 2025 FTIP with completion dates ranging from 2025 to 2029,
at an estimated cost of $773 million. TCMs are specific transportation projects and programs
committed to help improve air quality, regardless of the source of funding. Project sponsors
have been notified that TCMs must be operational or implemented by the completion date
committed to in the FTIP. If not, these projects must be substituted by another TCM-eligible
project.
The SCAG Regional Council is scheduled to approve the 2025 FTIP by September 2024. SCAG
subsequently will pursue the necessary state and federal approvals for the 2025 FTIP. These
approvals are anticipated to occur by early December 2024, at which point the 2025 FTIP takes
effect. SCAG allows submittal of minor changes to projects through amendments that occur
throughout the two-year cycle; staff coordinates amendments with the appropriate local
agencies.
FISCAL IMPACT:
This item does not have a financial impact; separate actions have been or will be taken to fund
specific projects as necessary.
Attachments:
1) RCTC Resolution No. 24-001
2) 2025 FTIP Funding Summary — FFY 2024/25 — FFY 2029/30
Agenda Item 6F
510
ATTACHMENT 1
RESOLUTION NO. 24-001
RESOLUTION OF THE RIVERSIDE COUNTY TRANSPORTATION COMMISSION CERTIFYING
RIVERSIDE COUNTY HAS RESOURCES TO FUND PROJECTS IN THE FEDERAL FISCAL YEARS
2024/25 THROUGH 2029/30 TRANSPORTATION IMPROVEMENT PROGRAM AND AFFIRMING
COMMITMENT TO IMPLEMENT ALL PROJECTS IN THE PROGRAM
WHEREAS, Riverside County is located within the metropolitan planning boundaries of the
Southern California Association of Governments (SCAG); and
WHEREAS, the Infrastructure Investment & Jobs Act (MA) requires SCAG to adopt a regional
transportation improvement program for the metropolitan area; and
WHEREAS, the IIJA also requires that the regional transportation improvement program include
a financial plan that demonstrates how the transportation improvement program can be
implemented; and
WHEREAS, the Riverside County Transportation Commission (RCTC) is the agency responsible for
short-range capital and service planning and programming for the Riverside County area within
SCAG; and
WHEREAS, as the responsible agency for short-range transportation planning, the RCTC is
responsible for developing the Riverside County Transportation Improvement Program (TIP),
including all projects utilizing federal and state highway and transit funds; and
WHEREAS, the RCTC must determine, on an annual basis, the total amount of funds that could
be available for transportation projects within its boundaries; and
WHEREAS, the RCTC has adopted the FFY 2024/25 through FFY 2029/30 Riverside County TIP with
funding for FFY 2024/25 and FFY 2025/26 available and committed, and reasonably committed
for FFY 2026/27 through FFY 2027/2028.
NOW, THEREFORE, BE IT RESOLVED by the RCTC that it affirms its continuing commitment to the
projects in the FFY 2024/25 through FFY 2029/30 Riverside County TIP; and
BE IT FURTHER RESOLVED, that the FFY 2024/25 through FFY 2029/30 Riverside County TIP
Financial Plan identifies the resources that are available and committed in the first two years and
reasonably available to carry out the program in the last four years, and certifies that:
1. Projects in the FFY 2024/25 through FFY 2029/30 Riverside County TIP are
consistent with the proposed 2024 State Transportation Improvement Program
(STIP) scheduled to be approved by the California Transportation Commission in
March 2024; and
511
2. All of the projects in the Riverside County TIP have complete funding identified in
the Program based on reasonably available funding; and
3. Riverside County has the funding capacity in its county Surface Transportation
Block Grant Program (STBG) and Congestion Mitigation and Air Quality Program
(CMAQ) allocation to fund all of the projects in the FFY 2024/25 through FFY
2029/30 Riverside County TIP; and
4. The local match for projects funded with federal STBG and CMAQ program funds
is identified in the TIP; and
5. All the Federal Transit Administration funded projects are programmed within
FAST Act Guaranteed Funding Levels.
APPROVED AND ADOPTED this 10th day of January, 2024.
Lloyd White, Chair
Riverside County Transportation Commission
ATTEST:
Lisa Mobley, Clerk of the Board
Riverside County Transportation Commission
512
ATTACHMENT 2
Fund Summary
Riverside County Transportation Commission
2025 FTIP (FY 2024/2025 - FY 2029/2030)
Local Highway, State Highway, Transit
Cost in Thousands
FUNDING SOURCE
PRIOR
2023
2024
2025
2026
2027
2028
BEYOND
TOTAL
2022 EARMARK REPURPOSING
$238
$0
$0
$0
$0
$0
$0
$0
$238
Carbon Reduction Program (CRP)
$8,466
$0
$0
$0
$0
$0
$0
$0
$8,466
Community Proj Funding -Congressionally
Directed
$3,300
$0
$0
$0
$0
$0
$0
$0
$3,300
National Highway Freight Program
$0
$26,000
$0
$0
$0
$0
$0
$0
$26,000
Railroad Crossing
$0
$0
$17,500
$0
$0
$0
$0
$0
$17,500
FEDERAL SUBTOTAL
$12,004
$26,000
$17,500
$0
$0
$0
$0
$0
$55,504
2016 EARMARK REPURPOSING
$4,842
$0
$0
$0
$0
$0
$0
$0
$4,842
2022 APPROPRIATIONS EARMARKS
$5,000
$0
$0
$0
$0
$o
$o
$0
$5,000
CMAQ
$191,002
$612
$77,190
$0
$0
$0
$0
$0
$268,804
COVID Relief Funds - STIP
$10,069
$0
$0
$0
$0
$0
$0
$0
$10,069
Coronavirus Response -Relief Supp
Appropriations Act
$16,891
$0
$0
$0
$0
$0
$0
$0
$16,891
DEMO - TEA 21
$7,918
$0
$0
$0
$0
$0
$0
$0
$7,918
DEMO-SAFETEA-LU
$19,287
$0
$0
$0
$0
$0
$0
$0
$19,287
FFY 2006 APPROPRIATIONS EARMARKS
$1,841
$o
$o
$0
$o
$0
$o
$0
$1,841
FFY 2009 Appropriations Earmarks
$950
$0
$0
$0
$0
$0
$0
$0
$950
HIGHWAY INFRASTRUCTURE PROGRAM
(HIP)
$35,114
$16,100
$4,500
$0
$0
$0
$0
$0
$55,714
INFRASTRUCTURE FOR REBUILDING
AMERICA (INFRA) GRANT
$50,000
$0
$0
$0
$0
$0
$0
$0
$50,000
Port Infrastructure Development Program
$0
$0
$22,000
$0
$0
$0
$0
$0
$22,000
RECREATIONAL TRAILS
$1,400
$0
$0
$0
$0
$0
$0
$0
$1,400
STP LOCAL
$135,646
$45,391
$31,729
$0
$0
$0
$0
$212,766
STP RAILROAD LOCAL
$5,122
$0
$0
$0
$0
$0
$0
$0
$5,122
SURFACE TRANS BLK GRNT LOCAL
$51,989
$0
$0
$0
$0
$0
$0
$0
$51,989
SURFACE TRANS PROG
$1,000
$0
$0
$0
$0
$0
$0
$0
$1,000
SURFACE TRANS PROG - HR4818
$739
$0
$0
$0
$0
$0
$0
$0
$739
FEDERAL HIGHWAY SUBTOTAL
$538,810
$62,103
$135,419
$0
$0
$0
$0
$0
$736,332
1 of 4
513
5307H -Hemet Urbanized Area
$16,617
$0
$0
$0
$0
$0
$0
$0
$16,617
53071C -Indio -Cathedral City Urbanized Area
$42,401
$0
$0
$0
$0
$0
$0
$0
$42,401
5307LA-LOS ANGELES/LONG BEACH/SANTA
ANA URBANIZED AREA
$272
$0
$0
$0
$0
$0
$0
$0
$272
5307MT-Murrieta-Temecula Urbanized Area
$19,084
$0
$0
$0
$0
$0
$0
$0
$19,084
5307RS-Riverside/San Bernardino Urbanized
Area
$120,478
$5,378
$0
$0
$0
$0
$0
$0
$125,856
53101C -Indio -Cathedral City Urbanized Area -
EM
$869
$0
$0
$0
$0
$0
$0
$0
$869
5310MT-Murrieta-Temecula Urbanized Area
- EM
$1,097
$0
$0
$0
$0
$0
$0
$0
$1,097
5310RS-Riverside/San Bernardino Urbanized
Area - EM
$1,873
$0
$0
$0
$0
$0
$0
$0
$1,873
5311- NONURBANIZED AREA FORMULA
PROGRAM
$5,510
$0
$0
$0
$0
$0
$0
$0
$5,510
5311F - INTERCITY BUS
$1,466
$0
$0
$0
$0
$0
$0
$0
$1,466
5337RS-Riverside/San Bernardino Urbanized
Area
$51,724
$20,742
$0
$0
$0
$0
$0
$0
$72,466
5339C -LOW OR NO EMISSION VEHICLE
PROGRAM — 5339(C)
$20,120
$0
$0
$0
$0
$0
$0
$0
$20,120
5339H -Hemet Urbanized Area - BFG
$3,067
$0
$0
$0
$0
$0
$0
$0
$3,067
53391C -Indio -Cathedral City Urbanized Area -
BFG
$7,335
$0
$0
$0
$0
$0
$0
$0
$7,335
5339LA-LOS ANGELES -LONG BEACH-
ANAHEIM URBANIZED AREA - BFG
$91
$0
$0
$0
$0
$0
$0
$0
$91
5339MT-Murrieta-Temecula Urbanized Area
- BFG
$5,320
$0
$0
$0
$0
$0
$0
$0
$5,320
5339RS-Riverside/San Bernardino Urbanized
Area - BFG
$25,203
$310
$0
$0
$0
$0
$0
$0
$25,513
2 of 4
514
FEDERAL RAILROAD ADMINISTRATION
EARMARK
$2,982
$0
$0
$0
$0
$0
$0
$0
$2,982
FTA 5307 (FHWA TRANSFER FUNDS)
$4,125
$0
$0
$0
$0
$0
$0
$0
$4,125
FTA 5307 UZA FORMULAR
$545
$0
$0
$0
$0
$0
$0
$0
$545
FTA 5309(a) GUIDEWY
$12,649
$0
$0
$0
$0
$0
$0
$0
$12,649
FTA 5309(c) BUS
$7,145
$0
$0
$0
$0
$0
$0
$0
$7,145
FTA 5339b - Bus and Bus Facilities
Discretionary Program
$21,316
$0
$0
$0
$0
$0
$0
$0
$21,316
NATIONAL RESEARCH AND TECHNOLOGY
$37
$0
$0
$0
$0
$0
$0
$0
$37
TRANS ORIENTED DEV PLANNING PILOT
PROGRAM
$700
$0
$0
$0
$0
$0
$0
$0
$700
FEDERAL TRANSIT SUBTOTAL
$372,026
$0
$0
$0
$0
$0
$0
$398,456
$26,430
AGENCY
$232,077
$264,302
$1,100,189
$1,311,542
$313,650
$114,793
$192,638
$3,000
$3,532,191
AIR BOARD
$27,436
$0
$0
$0
$0
$0
$0
$0
$27,436
BONDS - LOCAL
$36,520
$209,000
$71Q000
$0
$0
$0
$0
$0
$955,520
CITY FUNDS
$202,651
$175,001
$89,799
$178,013
$146,901
$48,894
$42,067
$87,000
$970,326
COUNTY
$9,189
$1,200
$0
$0
$99,800
$0
$0
$0
$110,189
DEVELOPER FEES
$11,250
$0
$0
$5,000
$23,000
$56,000
$4,200
$22,000
$121,450
EASTERN RIV TUMF
$14,712
$19,054
$900
$3,276
$150,000
$0
$0
$0
$187,942
FARE REVENUE
$7,243
$220
$0
$0
$0
$0
$0
$0
$7,463
Gas Tax (Subvention to cities)
$64
$0
$0
$0
$0
$0
$0
$0
$64
LOCAL - ADVANCED CONSTRUCTION
$60,047
($11,581)
$0
$0
$0
($48,284)
$0
$0
$182
LOCAL ADVANCE CONSTRUCTION
$375
$0
($557)
$0
$0
$0
$0
$0
($182)
LOCAL TRANS FUNDS
$252,410
$4,635
$0
$0
$0
$0
$0
$0
$257,045
Measure A Regional Arterial
$48,701
$15,000
$12,000
$0
$0
$0
$0
$0
$75,701
PRIVATE FUNDS
$15,510
$4,000
$2,000
$0
$0
$0
$0
$0
$21,510
RIV CO SALES TAX
$87,571
$34,304
$46,176
$901,681
$0
$0
$0
$0
$1,069,732
TDA ARTICLE #3
$338
$0
$0
$0
$0
$0
$0
$0
$338
TDA ARTICLE #4
$2,000
$0
$0
$0
$0
$0
$0
$0
$2,000
TUMF Regional Arterial
$28,896
$10,700
$0
$0
$0
$0
$0
$0
$39,596
TUMF Zone
$29,762
$24,868
$0
$0
$20,000
$14,618
$27,500
$81,500
$198,248
WESTERN RIV TUMF
$283,739
$41,000
$1,000
$10,802
$10,500
$7,400
$62,000
$11,500
$427,941
LOCAL SUBTOTAL
$1,350,491
$791,703
$1,961,507
$2,410,314
$763,851
$193,421
$328,405
$205,000
$8,004,692
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515
ACTIVE TRANSPORTATION PROGRAM
$32,519
$40,153
$4,032
$0
$0
$0
$0
$0
$76,704
ACTIVE TRANSPORTATION PROGRAM - MPO
$20,827
$6,846
$23,235
$9,386
$0
$0
$0
$0
$60,294
BRIDGE - LOCAL
$174,444
$37,813
$69,673
$5,671
$2,909
$189,994
$67,663
$0
$548,167
CEC-ALTERNATIVE FUEL
$5,236
$0
$0
$0
$0
$0
$0
$0
$5,236
LOCAL BRIDGE SEISMIC RETROFIT ACCOUNT
$415
$0
$0
$0
$0
$2,684
$0
$0
$3,099
NATIONAL HWY SYSTEM - HM
$8,490
$0
$0
$0
$0
$0
$0
$0
$8,490
PUBLIC TRANS MODERINAZATION IMP AND
SERV. ENHANCEMENT ACCT.
$18,234
$0
$0
$0
$0
$0
$0
$0
$18,234
SB1 LOCAL PARTNERSHIP COMPETITIVE
FUNDS
$13,222
$0
$0
$0
$0
$0
$0
$0
$13,222
SB1 LOCAL PARTNERSHIP FORMULA FUNDS
$7,686
$0
$0
$0
$0
$0
$0
$0
$7,686
SB1 SOLUTIONS FOR CONGESTED
CORRIDORS
$0
$44,500
$0
$0
$0
$0
$0
$0
$44,500
SB1 STATE OF GOOD REPAIR
$2,688
$52
$0
$0
$0
$0
$0
$0
$2,740
SB1TRADE CORRIDOR ENHANCEMENT
$68,408
$7,500
$0
$0
$0
$0
$0
$0
$75,908
SECTION 190 GRADE SEPARATION
PROGRAM
$5,000
$0
$5,000
$0
$0
$0
$0
$0
$10,000
SENATE BILL 132
$199,172
$0
$0
$0
$0
$0
$0
$0
$199,172
SHOPP - ADVANCE CONSTRUCTION
$151,973
$168,837
$75,431
$0
$0
$0
$0
$0
$396,241
SHOPP AC -PRIOR
$476
$0
$0
$0
$0
$0
$0
$0
$476
STATE CASH
$80
$0
$0
$0
$0
$0
$0
$0
$80
STATE CASH (AB 3090)
$53,102
$13,275
$0
$0
$0
$0
$0
$0
$66,377
STATE CASH - CT MINOR PROGRAM
$1,200
$0
$0
$0
$0
$0
$0
$0
$1,200
STATE CASH - RIP
$5,273
$0
$0
$13,000
$0
$0
$0
$0
$18,273
STATE PARK FUNDS
$400
$0
$0
$0
$0
$0
$0
$0
$400
STATE TRANSIT ASSIST
$68,920
$471
$0
$0
$0
$0
$0
$0
$69,391
STIP ADVANCE CON-IIP
$18,655
$0
$0
$0
$0
$0
$0
$0
$18,655
STIP ADVANCE CON-PIIP
$47,600
$0
$0
$0
$0
$0
$0
$0
$47,600
STIP ADVANCE CON -RIP
$10,082
$8,800
$33,208
$14,698
$0
$0
$0
$0
$66,788
State match
$1,602
$0
$0
$0
$0
$0
$0
$0
$1,602
TRADE CORRIDOR PROGRAM
$13,235
$0
$0
$0
$0
$0
$0
$0
$13,235
TRANSIT AND INTERCITY RAIL CAPITAL
PROGRAM
$27,473
$0
$0
$15,500
$0
$0
$0
$0
$42,973
STATE SUBTOTAL
$956,412
$328,247
$210,579
$58,255
$2,909
$192,678
$67,663
$0
$1,816,743
TOTAL
$3,229,743
$1,234,483
$2,325,005
$2,468,569
$766,760
$386,099
$396,068
$205,000
$11,011,727
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AGENDA ITEM 7
RIVERSIDE COUNTY TRANSPORTATION COMMISSION
DATE:
January 10, 2024
TO:
Riverside County Transportation Commission
FROM:
Sheldon Peterson, Rail Manager
THROUGH:
Anne Mayer, Executive Director
SUBJECT:
Amendment to the Metrolink Memorandum of Understanding for Fiscal Year
2023/24
STAFF RECOMMENDATION:
This item is for the Commission to:
1) Approve an advance of Local Transportation Funds (LTF) of $7,365,769 for the
Commission's share of preventative maintenance operating expenses for the Southern
California Regional Rail Authority (SCRRA) in Fiscal Year (FY) 2023/24; and
2) Authorize the Executive Director to finalize and execute Memorandum of Understanding
(MOU) Amendment No. 1 No. 23-25-079-01, pursuant to legal counsel review, with SCRRA
regarding the advance of funds.
BACKGROUND INFORMATION:
Metrolink is the brand name for the services operated by SCRRA. The Commission is one of the
five member agencies that comprises the SCRRA joint powers authority. All member agencies
must formally commit to fund their proportionate shares of commuter rail operating and capital
costs on an annual basis. On June 14, 2023, the Commission approved the annual operating and
capital subsidy budget for SCRRA, which included an operating subsidy of $28,231,736, with an
operating contingency of $1,658,651, for a not to exceed total of $29,890,387, and a capital
subsidy of $15,624,704. The funding plan for RCTC's operating subsidy was based on the
allocations shown in Table 1.
Table 1: FY 2023/24 Operating Subsidy by Revenue Source
Revenue Source
Amount
Local Transportation Fund (LTF)
$20,865,967
Federal Transit Administration Section 5337
(Preventative Maintenance, drawn down by SCRRA)
$ 7,365,769
Requested Total
$28,231,736
Added Contingency — LTF Funds
$ 1,658,651
Revised Total
$29,890,387
Metrolink staff has requested that the Commission provide a local subsidy funding advance for
federal funds based on the 2017 Metrolink board approved "Principles for Use of Federal Funds
Agenda Item 7
517
for Preventative Maintenance and New Transportation Services" which identifies the need for
member agencies to provide up -front local subsidies when utilizing federal funding for cash flow
purposes as they await federal reimbursement (Attachment 1). Metrolink staff estimates that
the federal grants will be executed and available for draw down by March 2024.
Staff recommends approval of the proposed Amendment 1 of MOU No. 23-25-079-00
(Attachment 2) to provide an LTF cash advance to Metrolink in the amount of $7,365,769. The
MOU amendment will increase the contract authority to allow the Commission to provide
Metrolink the additional LTF advance funding. This will allow the Commission to provide
Metrolink the total subsidy amount required for each quarterly installment to meet their cash
flow needs. Metrolink will initiate the Federal Transit Administration (FTA) preventative
maintenance grant for operations on the Commission's behalf as identified in the original MOU.
Once the grant is approved, Metrolink will submit expense reimbursements to FTA in a timely
manner. Within 30 days of receipt of the Commission's portion of the FTA funds, Metrolink will
reimburse the LTF advance amount to the Commission. Once all the invoices are approved and
submitted to FTA, it is anticipated that the entire LTF advance will be returned to the Commission
no later than September 30, 2024.
FISCAL IMPACT:
A budget amendment is not required as there is sufficient budget authority in the existing
FY 2023/24 Commission budget for this action.
Financial Information for SCRRA Budget Subsidy
In Fiscal Year Budget:
Yes
Year:
FY 2023/24
Amount:
FY24 Operations $7,365,769
Source of Funds:
Operating: LTF Western County Rail Funds
Budget Adjustment:
No
103 12301 (loans receivable) $7,365,769
GL/Project Accounting No.:
254199 86101 00000 0000 103 25 86101 $7,365,769
rJ
Fiscal Procedures Approved:
; /'
Date:
12/14/2023
Attachments:
1) Metrolink Principles for Use of Federal Funds for Preventative Maintenance and New
Transportation Services,
2) Draft Amendment MOU No. 23-25-079-01 for FY 2023/24 SCRRA Funding
Agenda Item 7
518
ATTACHMENT 1
METRDLINK
SOUTHERN CALIFORNIA REGIONAL RAIL AUTHORITY
TRANSMITTAL DATE: February 3, 2017
MEETING DATE: February 10, 2017 ITEM 8
TO: Board of Directors
FROM: Arthur T. Leahy
SUBJECT: Adoption of Principles for Use of Federal Funds for Preventive
Maintenance and New Transportation Services
Issue
To enable use of Member Agency federal funds for preventative maintenance and new
transportation services, it was necessary to develop guiding principles for programming and
use of federal funds in the Authority's operating budget. A draft principles document was
submitted to the Board on December 9, 2016. The final principles document is being submitted
to the Board at this time.
Recommendation
It is recommended that the Board approve and adopt the principles for use of federal funds for
preventive maintenance and new transportation services.
Alternative
The Board may request revisions to the principles document.
Strategic Goal Alignment
This report aligns with the strategic goal to maintain fiscal sustainability.
Background
At the request of the member agencies, a working group comprised of staff and member agency
representatives initiated discussions to explore the use of federal funds to support operations
within the Metrolink system. The initial goal was to identify eligible expenditures within the
operating budget that could be funded with federal funds. Two types of federally -eligible
expenses were identified:
1) preventive maintenance, and
2) new transportation services.
For both types of expenses, permissible expenditures and vendors were selected in such a way
as to comply with federal requirements and reduce administrative burden to the extent possible.
One Gateway Plaza, Floor 12, Los Angeles, CA 90012
2
519
Adoption of Principles for Use of Federal Funds for Preventive Maintenance and New
Transportation Services
Transmittal Date: February 3, 2017 Meeting Date: February 10, 2017
Page 2
The working group evaluated use of federal formula funds, specifically Federal Transit
Administration (FTA) Section 5307 funds and FTA Section 5337 funds, for eligible preventive
maintenance costs on the Metrolink system. Consistent with FTA rules, preventive maintenance
can include all maintenance costs related to vehicles, equipment and facilities, provided that
the maintenance contracts comply with Federal procurement requirements.
The working group also evaluated use of Congestion Mitigation and Air Quality (CMAQ) funds
for new transportation services, defined as new service on new routes, or expanded services
on existing routes. CMAQ is focused on start-up operations and may be used for up to five
sequential years from startup. At the conclusion of the startup period, operating costs will have
to be paid with non-CMAQ funds.
A draft principles document was developed to capture ideas and concepts discussed within the
working group, and was presented to the Board as information at its December 9, 2016 meeting.
A final principles document is now being presented to the Board for adoption.
The final principles document is consistent with the December 9, 2016 draft document, with
additional clarification in the following areas:
• The Funding Strategy section was revised to clarify that up to 80% of budgeted federally -
eligible activities may be funded with federal funds. Individual Member Agency shares are
not subject to the 80% maximum.
• The 80% maximum may be reviewed and revised as necessary during the annual budget
process.
• Member Agencies and the Authority may agree to reallocate funding types between
budgeted shares for federally -eligible items in the Authority's operating budget.
• If an expense is invoiced to the FTA and is later disallowed, the funding agency(ies) will be
responsible for the expense.
This principles document is required to build consensus for introducing federal funds in the
Authority's operating budget. Since the Authority currently does not use federal funds for
operations, implementation may require additional agency resources in the areas of labor
compliance, Disadvantaged Business Enterprise (DBE) monitoring, labor protection, budget
and expense segregation, cash management, financial reporting, federal billing, federal grant
applications, and federal reporting. Additional resources will be requested as needed in the
Agency's annual operating budget through the annual budget development process.
It will be important for member agencies to balance their federal funds across a number of uses
on the Metrolink system, including service expansion, preventive maintenance, and state of
good repair to ensure that the highest priority funding requirements are being addressed.
The use of federal funds for preventative maintenance and new transportation services will
allow member agencies greater flexibility in programming their streams of revenue to support
overall train operations. The approach will also allow member agencies to meet operating
subsidy obligations with federal funds if local revenue sources are insufficient.
3
520
Adoption of Principles for Use of Federal Funds for Preventive Maintenance and New
Transportation Services
Transmittal Date: February 3, 2017 Meeting Date: February 10, 2017
Page 3
Next Steps
Staff will work with member agencies to determine planned funding sources for the FY2017-18
budget and will continue to hold working group meetings to discuss specific implementation
steps such as Federal Transportation Improvement Program (FTIP) programming, cash flow,
and accounting processes. FTA grant applications will be developed and submitted after
approval of the Authority's budget by its Member Agencies and Board.
Budget Impact
Adoption of the principles and using federal funds for preventative maintenance and new
transportation services will allow member agencies more flexibility in allocation funds to support
train operations as future annual budgets are developed.
There is no budgetary impact as a result of this report. Funding for additional resources to
implement and maintain compliance with federal regulations may be requested as necessary
through the annual budget process for subsequent years.
Prepared by: Karen Sakoda, Planning Manager
Ronnie Campbell, Chief Financial Officer
•
Gary Lettengarver
Chief Operating Officer
e&a„.
Elissa K. Konove
Deputy Chief Executive Officer
521
4
ATTACHMENT A
Southern California Regional Rail Authority
Principles for SCRRA Member Agency Use of Federal Funds for Metrolink
Preventive Maintenance and New Transportation Services
1. General Principles
Southern California Regional Rail Authority (SCRRA), a Joint Powers Authority (JPA), supports its Member
Agencies in optimizing use of federal funding available for commuter rail Preventive Maintenance,
rehabilitation, and service expansion.
Based on characteristics of the Metrolink system and size of urbanized areas served, Metrolink's use of
federal funds for operating functions is limited to Preventive Maintenance and New Transportation
Services.
Each Member Agency will determine eligible funding sources for Metrolink's annual operating expenses,
which may include federal funds, local funds, or a combination of eligible funding sources.
Member agencies desiring to use federal funds for Preventive Maintenance or New Transportation
Services will collaborate with SCRRA to identify and program funding sources for federally -eligible
expenses.
Use of federal funds will commence in Fiscal Year (FY) 2018 for Preventive Maintenance. Use of
Congestion Mitigation and Air Quality (CMAQ) funds from RCTC for New Transportation Services will
commence in FY 2017.
11. Objectives of allowing Member Agencies to Use Federal Funds for Metrolink Operations
1. To preserve participation of all Member Agencies in the Metrolink JPA.
2. To allow flexibility of funding source(s) from each Member Agency towards eligible Preventive
Maintenance, and/or New Transportation Services.
3. To allow Member Agencies to use federal funds for eligible operating costs to prevent funds from
lapsing.
One Gateway Plaza. Floor 12 Los Angeles, CA 90012 T (213) 452.0200
metrolinktrains.com
5
522
ATTACHMENT A
METRDLINK®
Southern California Regiana! Rai! Authority
4. To allow SCRRA and Member Agencies to reallocate fund types as necessary through SCRRA's
operating and maintenance budgets, subject to grantor guidelines.
III. Definitions
Member Agencies shall! mean Los Angeles County Transportation Authority (LACMTA) also known as
Metro, Orange County Transportation Authority (OCTA), Riverside County Transportation Commission
(RCTC), San Bernardino Associated Governments (SANBAG), San Bernardino County Transportation
Authority (SBCTA) successor to the interests of SANBAG effective January 1, 2017, and Ventura County
Transportation Commission (VCTC).
New Transportation Services shall mean the start up of new transportation services, or the incremental
expanding of such services, consistent with Revised Interim Guidance on CMAQ Operating Assistance
under MAP -21, section a.
Preventive Maintenance shall mean all maintenance costs, related to vehicles and non -vehicles.
Specifically, it is defined as all the activities, supplies, materials, labor, services, and associated costs
required to preserve or extend the functionality and serviceability of the asset in a cost effective
manner, up to and including the current state of the art for maintaining such an asset, consistent with
FTA Circular 5010.1D, Chapter 1, Section 5.rr, or successor FTA guidance.
IV. Eligibility for Federal Preventive Maintenance Funds
During Metrolink's annual budget development cycle, SCRRA will assess the upcoming year's projected
Preventive Maintenance expenses for federal eligibility, and Member Agencies will provide eligible
sources of funding for Preventive Maintenance expenses in Metrolink's Operating budget.
1. Permissible costs for use of federal Preventive Maintenance funds include:
• Equipment Maintenance, vehicles and non -vehicles
• Maintenance of Way Line Segments
2. Service and procurement contracts must contain federal terms and conditions, and must be
awarded through a federal procurement process to be eligible for reimbursement with federal
funds.
V. Eligibility for Federal Funds for New Transportation Services
One Gateway Plaza, moat 12 Los Angeles, GA 90012 T (213} 452.0200
metrolinktrains.eom
523
6
ATTACHMENT A
During SCRRA's annual budget development cycle, SCRRA will assess the upcoming year's proposed new
service expenses for federal eligibility, and Member Agencies will provide eligible sources of funding for
the New Transportation Services contained in Metrolink's Operating budget. SCRRA will estimate costs
related to new service so that efforts to federally fund new services can be accomplished.
1. Permissible functions for use of CMAQ funds are for New Transportation Services on the
Metrolink system.
2. Use of CMAQ funds for New Transportation Services is limited to a maximum of five (5)
sequential years from start of new service. Funding amounts for years three (3) through five (5)
must conform to the taper -down approach described in CMAQ Program Guidance.
3. Service and procurement contracts must contain federal terms and conditions, and must be
awarded through a federal procurement process to be eligible for reimbursement with federal
funds.
VI. Funding Strategy
1. Member Agencies will be permitted to fund budgeted Preventive Maintenance and/or New
Transportation Services for any given Fiscal Year with up to 80% from federal sources. The
maximum percentage may be reviewed and revised as necessary during the annual budget
development process.
2. If necessary to meet operating subsidy obligations or to prevent funds from lapsing, SCRRA and
Member Agencies may agree to re -allocate funding types between budgeted shares of federally -
eligible activities in Metrolink's operating budget to the extent possible subject to grantor
guidelines for fund types and apportionment locations. If Member Agencies provide federal
funding amounts that collectively exceed the maximum allowed federal funding level, best
efforts will be made to reach an agreeable solution between the Member Agencies.
3. SCRRA will be the grant applicant for federal funds unless otherwise notified by the Member
Agencies. The grant applicant(s) will make every effort to apply for and expend funds in a timely
manner to prevent funds from lapsing.
4. SCRRA will not submit grant applications to the FTA until each Member Agency Board approves
its share of the Metrolink budget, and SCRRA's Board of Directors approves the overall Metrolink
budget. Member Agencies will apply for grants according to individual Agency policies and
practices.
5. Funding shares will remain consistent with SCRRA's Budget and FTA grant applications
throughout the applicable fiscal year, unless revised through a budget or grant amendment.
7
524
ATTACHMENT A
6. Member Agencies may choose to program and authorize federal funding for multiple fiscal years.
Each fiscal year will be subject to a year-end reconciliation process to determine status of all fund
types at the end of the fiscal year. Funds remaining or fund deficits will be handled as agreed
between SCRRA and the Member Agencies.
VII. Approval Process
1. Each Member Agency desiring to use federal funds to support Preventive Maintenance or New
Transportation Services would initiate the process and notify SCRRA at the start of SCRRA's
annual budget development process.
2. Each Member Agency desiring to use federal funds is responsible for identifying and
programming applicable federal funds in its own agency budgets. Federal funding allocations will
be communicated to SCRRA as soon as possible during the budget development process.
3. Each Member Agency desiring to use federal funds is responsible for executing necessary
planning documents such as the Federal Transportation Improvement Plan (FTIP), and will obtain
FTIP approval by June 30th, one day prior to the effective fiscal year.
4. Each Member Agency desiring to use federal funds is responsible for determining its approval
process and obtaining necessary approvals from its own agency management or governing
boards.
5. Member Agencies using federal funds will provide funding support letters to SCRRA describing
funding amounts, types or funds provided, intended purpose of funds (i.e. Preventive
Maintenance or New Transportation Services), fund apportionment years, and apportionment
Urbanized Areas (UZAs).
VIII. Accounting and Cash Flow
1. Accounting for allocation and use of funds will follow and be consistent with generally accepted
accounted principles (GAAP) as promulgated by GASB. The accepted standard setting body for
establishing governmental accounting and financial reporting principles, and the State
Controller's Minimum Audit Requirements and Reporting Guidelines.
2. If federal funds are not accessible for invoicing or drawdown at the start of the fiscal year,
Member Agencies that choose to provide federal funds for Preventive Maintenance or New
Transportation Services will be required to front -load their quarterly subsidy contributions to
provide cash flow for Metrolink Quarterly payment amounts and due dates will be determined
by SCRRA Finance Department annually prior to the start of the upcoming fiscal year.
8
525
ATTACHMENT A
3. Member Agency shares of Metrolink's operating and maintenance budgets will not change solely
as a result of federal funding.
4. Funding patterns established during the budget process will govern the billing and draw -down
ratios between Member Agencies and fund types, unless amended. Member Agency federal
funding will be subject to SCRRA's year-end reconciliation process.
5. SCRRA will take necessary steps to budget and invoice federally -funded expenses. If an expense
is invoiced to the FTA and is later disallowed, the funding Member Agency or Agencies will be
responsible for the expense.
IX. Financial Reporting
1. Financial reporting for any use of federal funds for Preventive Maintenance or New
Transportation Services will follow the normal cycle of monthly analysis with presentation to the
Board on a quarterly basis. Such presentation would be reflected in the Operating Statement for
the quarter presented.
2. SCRRA Grants & Capital Development will provide required quarterly reports to FTA for grants
executed by SCRRA. SCRRA will assist Member Agencies with FTA quarterly reporting for grants
executed by Member Agencies.
3. SCRRA Finance will perform year-end reconciliations for operating and federal funds and will
provide expenditure detail reports to the Member Agencies upon request.
X. Administrative Costs
1. During the annual budget development process, SCRRA will estimate increases to administrative
costs resulting from the use of federal funds for Preventive Maintenance and/or new
transportation service. Any increases in SCRRA staff for administration of federal funding for
Preventive Maintenance or New Transportation Service will be shared by all Member Agencies
according to reasonable cost allocation formulae. A non -exhaustive list of additional
administrative costs includes contract administration, labor compliance, DBE compliance, grants
finance and billing, budgeting and financial analysis, grants development, grants reporting, and
legal expenses.
2. If receipt of federal funds for Preventive Maintenance or New Transportation Service leads to a
labor claim under Section 5333(b) of Title 49, Chapter 53 (formerly 13(c)), the cost of addressing
the claim, and the cost of resolving the claim (if any), will be shared by all Member Agencies
according to a reasonable cost allocation formula.
9
526
ATTACHMENT 2
MOU No. 23-25-079-01
AMENDMENT NO. 1 TO FUNDING AGREEMENT
MEMORANDUM OF UNDERSTANDING NO. 23-25-079
This Amendment No. 1 to Memorandum of Understanding (this "Amendment No. 1") is made and
entered into by and between the Southern California Regional Rail Authority ("SCRRA") and the
Riverside County Transportation Commission ("RCTC") and is effective upon signature of both parties.
RECITALS:
A. WHEREAS, SCRRA and RCTC entered into that certain Memorandum of Understanding
No. 23-25-079, effective as of July 1, 2023 (the "Existing Memorandum of
Understanding"), which Existing Memorandum of Understanding provides for funding
the 2023-24 operating budget and rehabilitation/renovation and new capital budget
(collectively, the "BUDGET").
B. WHEREAS, SCRRA and RCTC now desire to amend the Existing Memorandum of
Understanding to increase the LTF funding for an advance by RCTC by Seven Million,
Three Hundred Sixty Five Thousand, Seven Hundred and Sixty -Nine Dollars
($7,365,769). These funds will be used to by Metrolink for Preventative Maintenance
until the funding can be reimbursed by FTA grants.
TERMS:
NOW, THEREFORE, for good and valuable consideration, the receipt and adequacy of
which are hereby acknowledged, the parties hereby agree as follows:
1. Section 11 1. A of the Existing Memorandum of Understanding is hereby
amended, in part, to read as follows:
"Establish an LTF cash advance to Metrolink in the amount of $7,365,769. Metrolink will initiate and
execute the Federal Transit Administration (FTA) Section 5337 Preventative Maintenance grant.
Metrolink will submit expense reimbursements to the FTA in a timely manner. Within 30 days of every
receipt of the Commission's portion of the FTA funds, Metrolink will reimburse the LTF advance amount
to the Commission. Once all the invoices are approved and submitted to FTA, it is anticipated that the
entire LTF advance will be returned to the Commission no later than September 30, 2024."
2. Except as expressly amended hereby, the Existing Memorandum of
Understanding remains in full force and effect as originally executed. All rights and obligations of the
parties under the Existing Memorandum of Understanding that are not expressly amended by this
Amendment No. 1 shall remain unchanged.
3. A manually signed copy of this Amendment No. 1 which is transmitted by
facsimile, email or other means of electronic transmission shall be deemed to have the same legal effect
as delivery of an original executed copy of this Amendment No. 1 for all purposes. This Amendment
No. 1 may be signed using an electronic signature.
527
MOU No. 23-25-079-01
[Signatures on following page]
528
MOU No. 23-25-079-01
SIGNATURE PAGE TO AMENDMENT NO. 1 TO FUNDING AGREEMENT
IN WITNESS WHEREOF, the parties have caused this Amendment No. 1 to be duly executed and
delivered as of the date set forth below.
RIVERSIDE COUNTY TRANSPORTATION COMMISSION
By: Date:
Anne Mayer
Executive Director
APPROVED AS TO FORM:
By:
Best Best & Krieger LLP
Counsel to the Riverside County
Transportation Commission
SCRRA:
SOUTHERN CALIFORNIA REGIONAL RAIL AUTHORITY
By: Date:
Darren Kettle
Chief Executive Officer
APPROVED AS TO FORM:
By:
Don O. Del Rio
General Counsel
529
AGENDA ITEM 8
RIVERSIDE COUNTY TRANSPORTATION COMMISSION
DATE:
January 10, 2024
TO:
Riverside County Transportation Commission
FROM:
David Lewis, Capital Projects Manager
Erik Galloway, Project Delivery Director
THROUGH:
Anne Mayer, Executive Director
SUBJECT:
Draft Cooperative Agreement with the City of Wildomar and Western
Riverside Council of Governments for the preparation of the Bundy Canyon
Road and Wildomar Trail Interstate 15 Interchanges Project Study Reports
STAFF RECOMMENDATION:
This item is for the Commission to:
1) Approve Cooperative Agreement No. 24-31-055-00 with the city of Wildomar and
Western Riverside Council of Governments (WRCOG) for the preparation of two separate
Project Study Reports (PSR's) for the Bundy Canyon Road and Wildomar Trail Interstate
15 Interchange projects (project); and
2) Authorize the Executive Director, pursuant to legal counsel review, to execute the
agreement and future non -funding agreements and/or amendments on behalf of the
Commission.
BACKGROUND INFORMATION:
The city of Wildomar has identified a need for two independent PSRs for the I-15/Bundy Canyon
Road and I-15/Wildomar Trail interchanges located in the city of Wildomar. The studies will
analyze potential alternatives for modifying the existing local roads, interchanges, and ramps to
provide improved traffic circulation. In preparation for the PSRs, the city of Wildomar, as the
project proponent, and WRCOG, as the funding agency, have executed Transportation Uniform
Mitigation Fee Program (TUMF) reimbursement agreements, allocating $1,000,000 for each
project, for a total of $2,000,000.
Cooperative Agreement
The city of Wildomar and WRCOG have requested that the Commission be the lead agency for
the PSRs and wish to enter into a three -party cooperative agreement. This draft cooperative
agreement details the project funding, the Commission's authority to act as the lead agency to
procure professional services for the preparation of the PSRs, reimbursement to the Commission
for all project cost, and other general matters related to the delivery of the projects.
Agenda Item 8
530
At this time, draft Cooperative Agreement No. 24-31-055-00 with the city of Wildomar, WRCOG,
and the Commission is under review by each agency and legal concurrence is pending. It is not
anticipated that notable changes will be required as a result of the pending reviews. The
agreement will not be executed until legal counsel approval is received.
FISCAL IMPACT:
Funding for the projects consists of TUMF program funds allocated by WRCOG for development
of a PSR for each project. WRCOG and the city of Wildomar have a previously executed
agreement for reimbursement of these TUMF funds. Both projects have $1,000,000 each
allocated for the preparation of the PSRs.
Financial
Information
In Fiscal Year Budget:
N/A
Year:
FY 2024/25+
Amount:
$2,000,000
Source of Funds:
TUMF Regional Arterial
Budget Adjustment:
No
GL/Project Accounting No.:
005224
005225
81101 00019 0000
81101 00019 0000
210 72 81101
210 72 81101
Fiscal Procedures Approved:
--.------:--)2.-----/ Date:
12/12/2023
Attachment: Draft Cooperative Agreement No. 24-31-055-00 —Agreement with City of Wildomar
and WRCOG
Agenda Item 8
531
Agreement No. 24-31-055-00
COOPERATIVE AGREEMENT
BETWEEN
RIVERSIDE COUNTY TRANSPORTATION COMMISSION,
CITY OF WILDOMAR, AND WESTERN RIVERSIDE COUNCIL OF GOVERNMENTS
FOR THE PREPARATION OF THE BUNDY CANYON ROAD AND WILDOMAR TRAIL
INTERCHANGES AT INTERSTATE 15
PROJECT STUDY REPORTS
1. Parties and Date. This Agreement is made and entered into this day of
, 2024, by and between the Riverside County Transportation Commission
(RCTC), City of Wildomar, and Western Riverside Council of Governments.
2. Recitals.
2.1 The Western Riverside Council of Governments (WRCOG) has allocated $2 Million
for the preparation of a Project Study Report (PSR) for the Bundy Canyon Road and Wildomar
Trail Interchanges at Interstate 15 (The Projects).
WRCOG and the City of Wildomar have entered into Funding Agreements allocating said $2
Million for the preparation of a PSR for the Projects.
2.2 The Projects are located adjacent to and within the jurisdictional boundaries of
the City of Wildomar.
2.3 The City of Wildomar has requested that RCTC be the lead agency for the
preparation of the PSR for the Project.
2.4
Project.
RCTC has agreed to act as the lead agency for the preparation of the PSR for the
2.5 The purpose of this Cooperative Agreement is to identify the project and to set
forth the terms and conditions by which WRCOG will release TUMF Program Funds for the Project
and to outline the administration roles and responsibilities for each agency.
3. Terms.
Preparation of two separate PSR's for Bundy Canyon Road and Wildomar Trail Interchanges
3.1 Administration of the PSR's. RCTC shall prepare a separate PSR for each of the
Projects solely using funds allocated by WRCOG. RCTC shall be the lead agency for the
preparation of the PSR. The Parties agree that RCTC shall not have any obligation to fund the
532
preparation of the PSR using its own funds. In the case that additional funds are needed to
complete the PSR, the source of funding for the PSR needed beyond the funding described in
Section 2.2 or any other phases of the Project, or construction of any portion or all of the Project,
shall be by an amendment.
3.2 Funding. WRCOG hereby agrees to distribute to RCTC, on the terms and
conditions set forth herein, a sum not to exceed, $2,000,000 to be used by RCTC for the PSR's of
the Project ("Funding Amount") to be used for reimbursing RCTC for Project expenses. The
Funding Amount shall consist of the $2,000,000 in TUMF Program Funds for the projects. The
Parties acknowledge and agree that the Funding Amount may be less than the actual cost of the
Project.
Procedures for Distribution of TUMF Program Funds to RCTC and CITY. RCTC shall be responsible
for initial payment of all the Project costs as they are incurred. Following payment of such Project
costs, RCTC shall submit invoices to WRCOG requesting reimbursement of eligible Project costs.
Each invoice shall be accompanied by detailed contractor invoices, or other demands for
payment addressed to the RCTC, and documents evidencing RCTC's payment of the invoices or
demands for payment. Documents evidencing RCTC'S payment of the invoices shall be retained
for four (4) years and shall be made available for review by WRCOG. RCTC shall submit invoices
not more often than monthly and not less often than quarterly. Procedures for Distribution of
TUMF Program Funds to CTY shall follow procedures set forth in the separate TUMF Agreement
between City and WRCOG for the applicable interchanges
Review and Reimbursement by WRCOG. Upon receipt of an invoice from RCTC, WRCOG may
request additional documentation or explanation of the Project costs for which reimbursement
is sought. Procedures for Review and Reimbursement by WRCOG to the CITY shall follow
procedures set forth in the separate TUMF Agreement between City and WRCOG for the
applicable interchanges
Funding Amount/Adjustment. If a post Project audit or review indicates that WRCOG has
provided reimbursement to RCTC in an amount in excess of the amount outlined in Section 3.2
of this Agreement or has provided reimbursement of ineligible Project costs, RCTC shall
reimburse WRCOG for the excess or ineligible payments within 30 days of notification by WRCOG.
RCTC shall complete preparation of the PSR within the Terms of this Agreement, as provided in
Section 4, unless extended by mutual agreement of the Parties.
4. Term of Agreement.
The term of this Cooperative Agreement shall extend from the Effective date (as set forth above)
and will remain in effect through January , 2027, or until written agreement by the
Parties that the Project has been completed, unless earlier terminated as provided in this
Cooperative Agreement.
533
4.1 Use of PSR. The Parties understand and agree that the PSR's, upon completion,
may be used by Wildomar and/or Caltrans for completion of other phases of the Project.
4.2 Cooperation. RCTC, Wildomar, and WRCOG agree to cooperate in the
development of the PSR for the Project and the implementation of this Cooperative Agreement.
4.3 Reporting. RCTC shall, in a timely manner, provide milestone reports to Wildomar
and/or WRCOG, detailing the progress of preparation of the PSR.
4.4 Mutual Indemnification.
A. RCTC shall, at its sole cost and expense, indemnify, defend and hold
WILDOMAR, and their respective city councils, elected and appointed officials, officers,
employees, agents, those Wildomar agents serving as independent contractors in the role of
Wildomar officials, consultants and contractors, and each of them, free and harmless from any
and all claims, demands, causes of action, costs, expenses, liabilities, losses, judgments, penalties,
damages or injuries, in law or in equity, to property or persons, including wrongful death,
whether actual, alleged or threatened, which arise in any manner out of, pertain to, or relate to,
in whole or in part, to any negligent acts, omissions or breach of law, recklessness, or willful
misconduct of RCTC, its board, directors, officials, officers, employees, agents, consultants or
contractors in the performance of RCTC's obligations under this Cooperative Agreement,
including but expressly not limited to fees of accountants or other professionals, and all costs
associated therewith, and the payment of all reasonable attorneys' fees and costs.
B. Wildomar shall, at its sole cost and expense, indemnify, defend and hold
RCTC , and their respective directors, board, city council, elected or appointed officials, officers,
employees, agents, those RCTC or Wildomar agents serving as independent contractors in the
role of RCTC or Wildomar officials, consultants and contractors, and each of them, free and
harmless from any and all claims, demands, causes of action, costs, expenses, liabilities, losses,
judgments, penalties, damages or injuries, in law or in equity, to property or persons, including
wrongful death, whether actual, alleged, or threatened, which in any manner arise out of, pertain
to, or relate to, in whole or in part, to any negligent acts, omissions or breach of law, recklessness,
or willful misconduct of Wildomar, its city council, elected or appointed officials, officers,
employees, agents, those Wildomar agents serving as independent contractors in the role of
Wildomar officials, consultants or contractors in the performance of Wildomar obligations under
this Cooperative Agreement, including but expressly not limited to fees of accountants or other
professionals, and all costs associated therewith, and the payment of all reasonable attorneys'
fees and costs.
C. WRCOG shall, at its sole cost and expense, indemnify, defend and hold
RCTC, and its directors, board, city council, elected or appointed officials, officers, employees,
agents, and each of them, free and harmless from any and all claims, demands, causes of action,
costs, expenses, liabilities, losses, judgments, penalties, damages or injuries, in law or in equity,
534
to property or persons, including wrongful death, whether actual, alleged or threatened, which
in any manner arise out of, pertain to, or relate to, in whole or in part, to any negligent acts,
omissions or breach of law, recklessness, or willful misconduct of WRCOG, its board, elected or
appointed officials, officers, employees, agents, including but expressly not limited to fees of
accountants or other professionals, and all costs associated therewith, and the payment of all
reasonable attorneys' fees and costs.
4.5 Amendments. The terms and conditions of this Cooperative Agreement shall not
be altered or modified at any time except by a written amendment executed by the mutual
consent of the Parties by an instrument in writing.
4.6 Waiver. No delay or omission in the exercise of any right or remedy of a non -
defaulting Party on any default shall impair such right or remedy or be construed as a waiver. No
consent or approval of either Party shall be deemed to waive or render unnecessary such Party's
consent to or approval of any subsequent act of the other Party. Any waiver by either Party of
any default must be in writing and shall not be a waiver of any other default concerning the same
or any other provision of this Cooperative Agreement.
4.7 Severability. In the event that any one or more of the phrases, sentences, clauses,
paragraphs, or sections contained in this Cooperative Agreement shall be declared invalid or
unenforceable by valid judgment or decree of a court of competent jurisdiction, such invalidity
or unenforceability shall not affect any of the remaining phrases, sentences, clauses, paragraphs,
or sections of this Funding Agreement, which shall be interpreted to carry out the intent of the
parties hereunder.
4.8 Survival. All rights and obligations hereunder that by their nature are to continue
after any expiration or termination of this Cooperative Agreement, shall survive any such
expiration or termination.
4.9 Third Party Beneficiaries. There are no third -party beneficiaries to this
Cooperative Agreement.
4.10 Termination. Any Party may terminate this Cooperative Agreement by giving
thirty (30) days written notice thereof.
4.11 Assignment or Transfer. The Parties shall not assign, hypothecate, or transfer,
either directly or by operation of law, this Cooperative Agreement or any interest herein without
the prior written consent of the other Parties. Any attempt to do so shall be null and void, and
any assignees, hypothecates or transferees shall acquire no right or interest by reason of such
attempted assignment, hypothecation or transfer.
4.12 Binding Effect. Each and all of the covenants and conditions shall be binding on
and shall inure to the benefit of the Parties, and their successors, heirs, personal representatives,
or assigns. This section shall not be construed as an authorization for any Party to assign any right
or obligation
535
4.13 Notices. All notices, demands, invoices, and written communications shall be in
writing and delivered to the following addresses or such other addresses as the Parties may
designate by written notice:
To RCTC:
Copy to:
To Wildomar:
Copy to:
Riverside County Transportation Commission
4080 Lemon Street, Third Floor
P.O. Box 12008
Riverside, CA 92502-2208
Attention: Executive Director
Best, Best & Krieger, LLP
3390 University Ave. 5f1.
Riverside, CA 92501
Attention: Steven C. DeBaun
City of Wildomar
23873 Clinton Keith Road, Suite 201
Wildomar, California 92595
Attention: Director of Public Works
To WRCOG Western Riverside Council of Governments
3390 University Ave, Suite 200
Riverside, California 92501
Attention: Executive Director
Copy to:
Depending upon the method of transmittal, notice shall be deemed received as follows: by
facsimile, as of the date and time sent; by messenger, as of the date delivered; and by U.S. Mail
first class postage prepaid, as of 72 hours after deposit in the U.S. Mail.
4.14 Time of Performance. Time is of the essence in the performance of this
Agreement.
4.15 Governing Law. This Agreement is in all respects governed by California law and
venue for any dispute shall be in Riverside County.
536
4.16 Insurance. The Parties each verify that they are self -insured or maintain insurance
coverage through a Joint Powers Authority in reasonable and customary amounts for their
respective operations.
4.17 Authority to Enter into Agreement. Each Party warrants that the individuals who
have signed this Cooperative Agreement have the legal power, right and authority to make this
Cooperative Agreement and bind each respective Party.
4.18 Counterparts. This Cooperative Agreement may be signed in counterparts, each
of which shall constitute an original and which collectively shall constitute one instrument.
4.19 Entire Agreement. This Cooperative Agreement contains the entire agreement of
the Parties relating to the subject matter hereof and supersedes all prior negotiations,
agreements or understandings.
IN WITNESS WHEREOF, the parties hereto have executed this Cooperative Agreement on the
date first herein above written.
[Signatures on following page]
537
SIGNATURE PAGE
TO
BUNDY CANYON ROAD AND WILDOMAR TRAIL INTERCHANGES AT INTERSTATE 15 PROJECT
STUDY REPORT COOPERATIVE AGREEMENT
IN WITNESS WHEREOF, the parties hereto have executed the Agreement on the Effective Date.
RIVERSIDE COUNTY CITY OF WILDOMAR
TRANSPORTATION COMMISSION
By:
By:
Anne Mayer, Executive Director
WESTERN RIVERSIDE COUNCIL OF GOVERNMENTS
L
By:
Chris Gray, Executive Director
Title:
APPROVED AS TO FORM: APPROVED AS TO FORM:
By: By:
Best Best & Krieger LLP
Counsel to the Riverside County Transportation
Commission
Title:
ATTEST:
By:
538
Title:
CITY OF WILDOMAR
By:
Title:
APPROVED AS TO FORM:
By:
Title:
ATTEST:
By:
Title:
44S4'\
539
RIVERSIDE
COUNTY
TRANSPORTATION
COMMISSION
1-15 BUNDY CANYON ROAD AND I-15 WILDOMAR
TRAIL INTERCHANGE IMPROVEMENTS PROJECTS
COOPERATIVE AGREEMENT - CITY OF WILDOMAR, WRCOG
RCTC January Commission Meeting
January 10, 2024
David Lewis, Capital Projects Manager
Project Background
• City of Wildomar identified a need for 2 interchange improvement projects on the 1-15
• I-15/Bundy Canyon Road
• I-15/Wildomar Trail
• Project Study Reports will be prepared for each interchange
• WRCOG funding agency via TUMF funds - $1,000,000 each project for a total of
$2,000,000
2
Proposed Bundy Canyon
Improvements
4 Y
Project Location
Proposed Wildomar Tail
Improvements
3
Cooperative Agreement
• City and WRCOG requested RCTC be the lead agency for the projects
• 3 —way cooperative agreement details project funding and describes the
roles and responsibilities for each agency
• 100% reimbursement for Commission staff time and project expenses
• Agreement is still in draft form pending legal concurrence — no major
changes are anticipated
4
Recommendation
• Approve Cooperative Agreement No. 24-31-055-00 with the city of
Wildomar and Western Riverside Council of Governments for the
preparation of two separate Project Study Reports (PSR's) for the Bundy
Canyon Road and Wildomar Trail Interstate 15 Interchange projects
(project); and
• Authorize the Executive Director, pursuant to legal counsel review, to
execute the agreement and future non -funding agreements and/or
amendments on behalf of the Commission.
5
RIVERSIDE
COUNTY
TRANSPORTATION
COMMISSION
QUESTIONS
AGENDA ITEM 9
RIVERSIDE COUNTY TRANSPORTATION COMMISSION
DATE:
January 10, 2024
TO:
Riverside County Transportation Commission
FROM:
Andrew Sall, Senior Management Analyst, Legislative Affairs
David Knudsen, External Affairs Director
THROUGH:
Anne Mayer, Executive Director
SUBJECT:
State and Federal Legislative Update
STAFF RECOMMENDATION:
This item is for the Commission to:
1) Receive and file a state and federal legislative update.
BACKGROUND INFORMATION:
State Update
Fiscal Year 2023-2024 Budget Update
The State Legislature reconvened on January 3 following the winter recess with legislators set to
begin the Fiscal Year (FY) 2023-24 state budget process. Governor Gavin Newsom is expected to
release his budget proposal before the required January 10, 2024, deadline. Governor Newsom
and legislators will need to address a larger deficit next fiscal year than previously forecasted.
While the 2023 Budget Act signed by Governor Newsom projected a $14 billion shortfall in
FY 2023-24, the Legislative Analyst's Office (LAO) released a report on December 7 detailing a
multi -year $68 billion budget shortfall. The LAO reports the shortfall is partly related to state tax
revenue coming in below projections, the state's volatile tax revenue structure, and the federally
mandated six-month extension of the state's tax filing deadline in 2023 due to natural disasters.
The LAO report further highlights a number of options for the Governor and Legislature to
consider, from tapping into nearly $24 billion in rainy day fund reserves, to clawing back
one-time budget expenditures. Among other expenditures, the LAO cited $2.2 billion in
transportation funds that could be reduced in part or entirely.
Staff will closely monitor the Governor's budget proposal and the ensuing process for threats to
transportation funding programs of interest and will advocate appropriately.
Agenda Item 9
540
State Legislative Leadership Update
On November 21, Assembly Speaker Robert Rivas announced changes to Standing Committees
for the second year of the 2023-2024 Regular Session. Notably, Assemblymember Lori Wilson
(Suisun City) was appointed Chair of the Assembly Transportation Committee. She replaces
Assemblymember Laura Friedman in this position, who was subsequently removed from the
committee. RCTC staff intend to engage Chair Wilson and her staff to discuss the Commission's
key legislative priorities in Sacramento.
In the Senate, Senator Mike McGuire (Healdsburg) will be sworn in as Speaker Pro Tem on
February 5, replacing outgoing Speaker Pro Tem Toni Atkins. This leadership transition was
previously announced in August, however no succession date was shared at the time.
CTC Deadlocks on Interstate 15 Project in San Bernardino County
On December 7, Commissioners on the California Transportation Commission (CTC) did not
approve CTC staff's recommendation to allocate $202 million in state funding for San Bernardino
County Transportation Authority's (SBCTA) Interstate 15 Corridor Freight Improvement Project:
Auxiliary Lanes and Express Lanes. The project seeks to add auxiliary and express lanes along
Interstate 15 in both Riverside and San Bernardino Counties, with a direct connection to RCTC's
15 Express Lanes. The vote ended in a 3-3 tie as the CTC struggled to maintain a quorum at the
end of their two-day meeting, resulting in the project funding allocation not being approved. The
CTC meeting was significantly behind schedule and some Commissioners had to leave before all
items on the agenda were heard. By the time SBCTA's agenda item was up for consideration, it
was bundled with several other agenda items for a bulk vote. A Commissioner pulled the item
to be discussed separately. Dissenting Commissioners raised concerns that this project increases
vehicle miles traveled (VMT), induces truck traffic on freeways, and would lead to additional
warehouses being built in the Inland Empire due to the additional capacity in the general-purpose
lanes created by the express lanes. Concerns were expressed that the project does not align with
the Governor's Climate Action Plan for Transportation Infrastructure (CAPTI). While RCTC staff
have anticipated impacts to funding approvals from the CTC due to views regarding VMT and
CAPTI, this vote is the first instance of the CTC denying funding for a highway project due to
concerns that the project adds new capacity or increases VMT. The project will be re -heard by
the CTC at its January 25 meeting in Modesto.
The project's failure to receive approval by the CTC on environmental grounds is alarming given
the project has an approved environmental document, was already awarded funding by the CTC
under state competitive and formula programs prior to the adoption of CAPTI and has been
approved by the CTC to be included in the State Transportation Improvement Program for several
years. December's CTC vote was merely to allocate previously awarded funds now that the
project is ready to go to construction. Additionally, other state, local, and federal funds had been
set aside for construction of the project in anticipation that the CTC would approve the
$202 million allocation. SBCTA has spent approximately $26 million to bring the project to this
point.
Agenda Item 9
541
For the last few years, the Commission has received reports from staff concerned with how the
state is implementing CAPTI and its anticipated impact on Inland Southern California highway
projects. This implementation combined with a worrying number of bill proposals aimed to
severely limit the ability of state or regional transportation agencies to plan or fund roadway
projects that add any VMT is intended to make it very difficult to deliver highway improvements.
RCTC has taken bold steps to advocate for regional variance noting to State decision -makers that
one -size -doesn't -fit all when implementing CAPTI and other transportation policies. RCTC
advocacy efforts will continue as the California State Transportation Agency looks to update
CAPTI in spring 2024.
RCTC staff will continue to monitor the status of the project and potential future consideration
by the CTC, which could have implications for other highway improvements across the region
and state.
This is consistent with RCTC's adopted 2024 State and Federal Legislative Platform:
Regional Partnerships
•
•
•
•
Collaborate with regional transportation agencies to impact transportation funding and
regulatory policies to bring equity and fairness to the Inland Empire region.
Collaborate with public and private sector stakeholders on policy and funding matters
that enhance economic development and quality of life in the Inland Empire region.
Engage in legislative efforts impacting regional transportation agencies, particularly
when the efforts have a nexus to the Commission.
Support implementation of projects in other counties that are contained in the
Southern California Association of Governments RTP/Sustainable Communities
Strategy when requested by other counties and not in conflict with the Commission's
interests.
Federal Update
As of the writing of this report, there has been no agreement regarding topline spending that
would enable negotiations for the various Fiscal Year 2024 Appropriations legislation. The
Continuing Resolution that passed the Senate on November 15 split the appropriations
subcommittee bill extensions into two deadlines, with a set of appropriations at current spending
levels —including the Transportation -Housing & Urban Development bill —set to expire after
January 19, 2024, and others through February 2, 2024. Staff will continue to monitor
negotiations for full Fiscal Year 2024 Appropriations legislation and efforts to keep the
government open.
CV Rail Added to the Corridor ID Program
The U.S. Federal Rail Administration (FRA) added the Coachella Valley Rail (CV Rail) Project to the
federal Corridor Identification and Development (Corridor ID) Program on December 8, 2023. The
Agenda Item 9
542
Corridor ID Program is an intercity passenger rail planning and development program that the
FRA uses to guide intercity passenger rail development throughout the country. This designation
included a $500,000 grant award to Caltrans, the State's project partner, to create a Service
Development Plan outlining the future needs of passenger rail service in southern California and
beyond.
Inclusion in the Corridor ID Program is an important step for CV Rail as the project will be more
competitive for future federal engineering and construction grants.
FISCAL IMPACT:
This is a policy and information item. There is no fiscal impact.
Attachment: Legislative Matrix —January 2024
Agenda Item 9
543
RIVERSIDE COUNTY TRANSPORTATION COMMISSION - POSITIONS ON STATE AND FEDERAL LEGISLATION — JANUARY 2024
Legislation/
Author
Description
Bill
Status
Position
Date of Board
Adoption
AB 6
(Friedman)
This bill provides significant new oversight to the California Air Resources
Board in the approval process of a metropolitan planning organization's
Sustainable Communities Strategy and the methodology used to
estimate greenhouse gas emissions. These new burdensome
requirements will likely result in significant delays to transportation
projects.
Passed the Assembly,
referred to the Senate
Transportation and
Environmental Quality
Committees on June 14,
2023.
Two-year bill.
September 15, 2023
Oppose Based
on Platform
5/24/2023
AB 7
(Friedman)
This bill requires the California State Transportation Agency, California
Department of Transportation, and California Transportation
Commission to consider specific goals as part of their processes for
project development, selection, and implementation. AB 7 may impact
the allocation of billions of dollars in state transportation funding,
infringing on RCTC's ability to deliver critically needed transportation
infrastructure in Riverside County.
Ordered to the inactive file.
Two-year bill.
September 11, 2023
Oppose Based
on Platform
5/25/2023
AB 558
(Arambula)
This bill restructures the Fresno County Transportation Authority (FCTA)
by increasing its board membership from nine to thirteen members. This
restructuring is done without the consensus and support from regional
stakeholders and sets a concerning precedent for RCTC and other
regional transportation agencies that rely upon a collaborative process
to be effective.
Additionally, the bill was amended on April 18 to subject a county
transportation expenditure plan prepared by the Fresno County
Transportation Authority (FCTA) to the requirements of the California
Environmental Quality Act.
Hearing postponed by the
Local Government
Committee on April 24,
2023.
Two-year bill.
April 28, 2023
Oppose Based
on platform
4/10/2023
AB 1385
(Garcia)
This bill would raise RCTC's maximum tax rate authority from 1% to 1.5%.
Approved by the Governor.
October 8, 2023
Support
3/8/2023
544
Legislation/
Author
Description
Bill
Status
Position
Date of Board
Adoption
AB 1525
(Bonta)
This bill significantly narrows the location and types of projects eligible to
receive state transportation funding by requiring 60% of funds to be
allocated to priority populations.
Held under submission in
the Assembly
Appropriations Committee
on May 18, 2023.
Two-year bill.
May 18, 2023
Oppose Based
on platform
4/11/2023
SB 617
(Newman)
This bill, until January 1, 2029, would authorize a transit district,
municipal operator, consolidated agency, joint powers authority,
regional transportation agency, or local or regional agency, as described,
to use the progressive design -build process for up to 10 public works
projects in excess of $5 million for each project. The bill would specify
that the authority to use the progressive design -build process.
Approved by the Governor.
October 4, 2023
Support
Based on
platform
4/5/2023
545
RIVERSIDE COUNTY TRANSPORTATION COMMISSION
ROLL CALL
JANUARY 10, 2024
Present Absent
County of Riverside, District I
X 0
County of Riverside, District II
County of Riverside, District III
County of Riverside, District IV
X 0
County of Riverside, District V
X 0
City of Banning
X x
City of Beaumont
City of Blythe
City of Calimesa
X 0
City of Canyon Lake
X 0
City of Cathedral City
City of Coachella
City of Corona
City of Desert Hot Springs
X 0
City of Eastvale
X 0
City of Hemet
City of Indian Wells
City of Indio
City of Jurupa Valley
O x
City of La Qu i nta
O x
City of Lake Elsinore
City of Menifee
City of Moreno Valley
City of M u rrieta
X 0
City of Norco
X 0
City of Palm Desert
X 0
City of Palm Springs
City of Perris
X 0
City of Rancho Mirage
X 0
City of Riverside
X 0
City of San Jacinto
City of Temecula
City of Wildomar
X 0
Governor's Appointee, Caltrans District 8 X 0
RIVERSIDE COUNTY TRANSPORTATION COMMISSION
COMMISSIONER SIGN -IN SHEET
JANUARY 10, 2024
NAME
AGENCY
EMAIL ADDRESS
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RIVERSIDE
COUNTY
TRANSPORTATION
COMMISSION
TO: Riverside County Transportation Commission
FROM: Lisa Mobley, Administrative Services Director/Clerk of the Board
DATE: January 3, 2024
SUBJECT: G.C. 84308 Compliance — Potential Conflict of Interest
California Government Code 84308 states a Commissioner may not participate in any discussion or action
concerning a contract or amendment if a campaign contribution of more than $250 is received in the past 12
months or 3 months following the conclusion from a bidder or bidder's agent. This prohibition does not apply
to the awarding of contracts that are competitively bid. The Commission's procurement division asks potential
vendors to disclose any contributions made to the campaigns of any Commissioner as part of their submitted
bid packets. As an additional precaution, those entities are included below in an effort to give Commissioners
opportunity to review their campaign statements for potential conflicts. Please note the entities listed in this
memo are not encompassing of all potential conflicts and are in addition to any personal conflicts of interest
such as those disclosed on Statement of Economic Interests — Form 700 or prohibited by Government Code
Section 1090. Please contact me should you have any questions.
Agenda Item No. 6E — Agreements for On -Call Maintenance and Repair Services for the Commuter Rail
Stations and Toll Facilities
Consultant(s): 4D Surface Management, Inc.
Mike Doucette, Vice President
P.O. Box 123
Yucaipa, CA 92399
Joshua Grading and Excavating, Inc.
Muriel Craft, President/CEO
8450 B White Road
Phelan, CA 92371
Real Estate Consulting & Services
Jeffrey Cross, President
18345 Pasadena St.
Lake Elsinore, CA 92530
DATE:
CHECK IF
DETACH AND SUBMIT TO THE CLERK OF THE BOARD
SUBJECT OF
PUBLIC COMMENTS: O PUBLIC COMMENTS:
A GENDA ITEM NO.:
(AS LISTED ON THE AGEN DA)
N AME:
ADDRESS: c iO Q ]1',9, j
STREET
REPRESENTING:
NA ME OF AGENC Y ORGANIZATION / GR OUP
SUBJECT OF
AGEN DA ITEM:
Der n 146 -
P HONE NO.:
CITY ZIP C ODE
PHONE NO.: °?-.274? � !
BUSIN ESS ADDRESS:
STREET
/re -m/ 4- 9D9 g &, , / , e vr-r
CITY ZIP C ODE