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11 November 24, 2008 Budget & Implementation85872 RIVERSIDE COUNTY TRANSPORTATION COMMISSION BUDGET AND IMPLEMENTATION COMMITTEE MEETING AGENDA TIME: 9:30 a.m. DATE: Monday, November 24, 2008 LOCATION: BOARD ROOM County of Riverside Administrative Center 4080 Lemon Street, First Floor, Riverside ***COMMITTEE MEMBERS*** Steve Adams, Chair / Andy Melendrez, City of Riverside Roger Berg, Vice -Chair / Jeff Fox, City of Beaumont Joseph DeConinck / Robert Crain, City of Blythe John Chlebnik / Ray Quinto, City of Calimesa Mary Craton / John Zaitz, City of Canyon Lake Gregory S. Pettis / Kathleen DeRosa, City of Cathedral City Eduardo Garcia / Steven Hernandez, City of Coachella Scott Matas / Russell Betts, City of Desert Hot Springs Terry Henderson / Don Adolph, City of La Quinta Bob Magee / Robert L. Schiffner, City of Lake Elsinore Darcy Kuenzi / Scott Mann, City of Menifee Rick Gibbs / Kelly Bennett, City of Murrieta Gordon Moller / Alan Seman, City of Rancho Mirage Ron Roberts / Jeff Comerchero, City of Temecula John F. Tavaglione, County of Riverside, District II ***STAFF*** Anne Mayer, Executive Director Theresia Trevino, Chief Financial Officer RECORDS ***AREAS OF RESPONSIBILITY*** Annual Budget Development and Oversight Countywide Strategic Plan Legislation Measure A Implementation and Capital Programs Public Communications and Outreach Programs Competitive Grant Programs: TEA 21-CMAQ & STP, Transportation Enhancement and SB 821-Bicycle & Pedestrian SAFE/Freeway Service Patrol TUMF Program Comments are welcomed by the Committee. If you wish to provide comments to the Committee, please complete and submit a Speaker Card to the Clerk of the Board. 11.36.06 RIVERSIDE COUNTY TRANSPORTATION COMMISSION BUDGET AND IMPLEMENTATION COMMITTEE SIGN -IN SHEET NOVEMBER 24, 2008 AME -0--"HA AGEnNnCY EMAIL ADDRESS G-Q..aai . A 0 t- I ukul UV aKtavL7i & 64,1,pcnienikof. /1 7n4.1116- (e �4;�� �/64�h 717t-L-4-t- k--_, �.�� �, _ S »�s `i)rn-6,Lz- 74,, _52775 .S44-.4.97)% ✓, ,../x_ Ja 1,141 /1. C#LE\81vg- e L/ME�} St �1.-� ns III eLk,7--� t RIVERSIDE COUNTY TRANSPORTATION COMMISSION BUDGET AND IMPLEMENTATION COMMITTEE ROLL CALL NOVEMBER 24, 2008 County of Riverside, District II City of Beaumont City of Blythe City of Calimesa City of Canyon Lake City of Cathedral City City of Coachella City of Desert Hot Springs City of La Quinta City of Lake Elsinore City of Menifee City of Murrieta City of Rancho Mirage City of Riverside City of Temecula Present Absent O )71 rQ O • • RIVERSIDE COUNTY TRANSPORTATION COMMISSION BUDGET AND IMPLEMENTATION COMMITTEE www.rctc.org AGENDA* *Actions may be taken on any item listed on the agenda 9:30 a.m. Monday, November 24, 2008 BOARD ROOM County Administrative Center 4080 Lemon Street, First Floor Riverside, California 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 and Government Code Section 54954.2, if you need special assistance to participate in a Committee meeting, please contact the Clerk of the Board at (951) 787-7141. Notification of at least 48 hours prior to meeting time will assist staff in assuring that reasonable arrangements can be made to provide accessibility at the meeting. 1. CALL TO ORDER 2. PLEDGE OF ALLEGIANCE 3. ROLL CALL 4. PUBLIC COMMENTS - Each individual speaker is limited to speak three (3) continuous minutes or less. The Committee may, either at the direction of the Chair or by majority vote of the Committee, 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. Also, the Committee may terminate public comments if such comments become repetitious. In addition, the maximum time for public comment for any individual item or topic is thirty (30) minutes. Speakers may not yield their time to others without the consent of the Chair. Any written documents to be distributed or presented to the Committee shall be submitted to the Clerk of the Board. This policy applies to Public Comments and comments on Agenda Items. Budget and Implementation Committee November 24, 2008 Page 2 Under the Brown Act, the Board should not take action on ordiscuss matters raised during public comment portion of the agenda which are not listed on the agenda. Board members may refer such matters to staff for factual information or to be placed on the subsequent agenda for consideration. 5. APPROVAL OF MINUTES - OCTOBER 27, 2008 6. ADDITIONS/REVISIONS (The Committee may add an item to the Agenda after making a finding that there is a need to take immediate action on the item and that the item came to the attention of the Committee subsequent to the posting of the agenda. An action adding an item to the agenda requires 2/3 vote of the Committee. if there are less than 2/3 of the Committee members present, adding an item to the agenda requires a unanimous vote. Added items will be placed for discussion at the end of the agenda.) 7. 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. 7A. QUARTERLY FINANCIAL STATEMENTS Overview This item is for the Committee to: • Page 1 • 1) Receive and file the Quarterly Financial Statements for the period ended September 30, 2008; and 2) Forward to the Commission for final action. 7B. QUARTERLY INVESTMENT REPORT Overview This item is for the Committee to: Page 5 1) Receive and file the Quarterly Investment Report for the quarter ended September 30, 2008; and 2) Forward to the Commission for final action. • • • Budget and Implementation Committee November 24, 2008 Page 3 7C. INTERFUND LOAN ACTIVITY REPORT Overview This item is for the Committee to: 1) Receive and file the Interfund Loan Activity Report; and 2) Forward to the Commission for final action. 8• FISCAL YEAR 2007/08 COMMISSION AUDIT RESULTS Overview This item is for the Committee to: Page 17 Page 19 1) Comprehensive Annual Financial Report; 2) Local Transportation Fund (LTF) Audited Financial Statements; 3) State Transit Assistance Fund (STAF) Audited Financial Statements; 4) Compliance Report; 5) Commercial Paper Compliance Report; 6) Audit Results Report; 7) Agreed -Upon Procedures Report related to the Appropriation Limit Calculation; 8) Agreed -Upon Procedures Report related to the Commuter Assistance Program incentives; 9) Management certifications; and 10) Forward to the Commission for final action. Budget and Implementation Committee November 24, 2008 Page 4 9• COACHELLA VALLEY ASSOCIATION OF GOVERNMENTS/SUNLINE AUDIT • RESOLUTION Page 182 Overview This item is for the Committee to: 1) Approve the Coachella Valley Association of Government's (CVAG) request to deprogram three projects previously approved for Congestion Mitigation and Air Quality (CMAQ) funds in the amount of $2,636,997; 2) Reduce the Salton Sea Air Basin (SSAB) CMAQ funding by $2,552,971 in the next federal transportation authorization; 3) Authorize the Executive Director, pursuant to legal counsel review, to enter into Memorandum of Understanding (MOU) No. 09-66-51-00 with Ca!trans regarding payment of disallowable CMAQ funds; and 31 Forward to the Commission for final action. 10. TRANSPORTATION ENHANCEMENT APPLICATION REVISION FOR THE PERRIS VALLEY LINE GREENWAY CORRIDOR PROJECT Overview This item is for the Committee to: Page 192 • 1) Approve the Transportation Enhancement (TE) Application Revision for the Perris Valley Line (PVL) Greenway Corridor project; and 2) Forward to the Commission for final action. • • • Budget and Implementation Committee November 24, 2008 Page 5 11. AGREEMENT WITH URS CORPORATION FOR THE DEVELOPMENT OF PLANS, SPECIFICATIONS, AND COST ESTIMATE FOR THE INTERSTATE 215 WIDENING PROJECT FROM MURRIETA HOT SPRINGS ROAD TO SCOTT ROAD, NORTH OF THE CITY OF MURRIETA Page 201 Overview This item is for the Committee to: 1) Award Agreement No. 09-31-045-00 to URS Corporation to perform final engineering services and prepare plans, specifications, and cost estimates (PS&E) for the 1-215 widening project from Murrieta Hot Springs Road to Scott Road, north of the city of Murrieta, based on the attached project scope and cost for the base amount of $3,372,139 plus a contingency amount of $377,861 to cover potential changes in scope for a total not to exceed amount of $3.75 million; 2) Authorize the Chair, pursuant to legal counsel review, to execute the agreement on behalf of the Commission; 3) Authorize the Executive Director or designee to approve contingency work as may be required for the project; 4) Authorize the Executive Director the option to request a proposal from URS Corporation to provide PS&E services for the 1-215 widening project from Scott Road to Nuevo Road in the city of Perris, if URS Corporation's performance is acceptable in completing the PS&E work for the 1-215 widening project from Murrieta Hot Springs Road to Scott Road, and to bring back a recommendation to the Commission for PS&E contract award; and 5) Forward to the Commission for final action. Budget and Implementation Committee November 24, 2008 Page 6 12. PROGRAMMING AND POLICY AMENDMENTS TO SUPPORT THE IMPLEMENTATION OF THE JOBS/ACCESS REVERSE COMMUTE AND NEW FREEDOM CALL FOR PROJECTS GRANTS Page 233 Overview This item is for the Committee to: 1) Approve July 1, 2009 as the project start date for all Specialized Transit projects awarded under the Universal Call for Projects as identified on Attachment 1 to this report; 2) Authorize the Executive Director, pursuant to legal counsel review, to extend the applicable interim grantee contracts to June 30, 2009 and approve up to $860,962 of additional Western Riverside County Measure A Specialized Transit funds as identified in Attachment 2 of this report; 3) Approve the proposed project exemptions and exclusions for Riverside Transit Agency (RTA) and SunLine Transit Agency (SunLine) from the Commissions' Farebox Recovery Policy as identified on Attachment 3; and 4) Forward to the Commission for final action. 13. FUND TRANSFER AGREEMENT FOR OPERATION OF A FREEWAY SERVICE PATROL PROGRAM IN RIVERSIDE COUNTY Overview This item is for the Committee to: Page 243 1) Approve Fund Transfer Agreement No. 09-45-059-00 with the state of California Department of Transportation (Ca!trans) for the Riverside County Freeway Service Patrol (FSP) program in the amount of $1,656,238 in state funding for FY 2008/09; and 2) Forward to the Commission for final action. • • • • • Budget and Implementation Committee November 24, 2008 Page 7 14. ITEM(S) PULLED FROM CONSENT CALENDAR AGENDA 15. COMMISSIONERS / STAFF REPORT Overview This item provides the opportunity for the Commissioners and staff to report on attended and upcoming meeting/conferences and issues related to Commission activities. 16. ADJOURNMENT AND NEXT MEETING The next Budget and Implementation Committee meeting is scheduled to be held at 9:30 a.m., Monday, December 22, 2008, Board Chambers, First Floor, County Administrative Center, 4080 Lemon Street, Riverside. • • RIVERSIDE COUNTY TRANSPORTATION COMMISSION BUDGET AND IMPLEMENTATION COMMITTEE Monday, October 27, 2008 MINUTES 1. CALL TO ORDER Chair Steve Adams called the meeting of the Budget and Implementation Committee to order at 9:32 a.m., in the Board Room at the County of Riverside Administrative Center, 4080 Lemon Street, First Floor, Riverside, California, 92501. 2. PLEDGE OF ALLEGIANCE At this time, Commissioner Scott Matas led the Budget and Implementation Committee in a flag salute. 3. ROLL CALL Members/Alternates Present Members Absent Steve Adams John Chlebnik Mary Craton Eduardo Garcia Rick Gibbs Terry Henderson Bob Magee Scott Matas Ron Roberts John Tavaglione 4. PUBLIC COMMENTS Roger Berg Joseph DeConinck Gregory Pettis Gordon Moller There were no requests to speak from the public. Budget and Implementation Committee Minutes October 27, 2008 Page. 2 5. APPROVAL OF MINUTES — SEPTEMBER 22, 2008 M/S/C (Craton/Henderson) to approve the minutes of September 22, 2008, as submitted. Commissioner Mary Craton stated per Commissioner John Chlebnik's request at its September 22, 2008 Budget and Implementation Committee meeting, Riverside Transit Agency will continue to operate Route 36 at reduced hours and weekdays only. 6. ADDITIONS / REVISIONS There were no additions or revisions to the agenda. 7. CONSENT CALENDAR - All matters on the Consent Calendar will be approved in a single motion unless a Commissioner(s) requests separate action on specific item(s). Items pulled from the Consent Calendar will be placed for discussion at the end of the agenda. M/S/C (Craton/Roberts) to approve the following Consent Calendar item(s): 7A. SINGLE SIGNATURE AUTHORITY REPORT 1) Receive and file the Single Signature Authority Report for the first quarter ended September 30, 2008; and 2) Forward to the Commission for final action. 8. SALES TAX REVENUES UPDATE Theresia Trevino, Chief Financial Officer, provided an update on the sales tax revenues, discussing the following areas: • Commission revenue sources; • Sales tax calendar; • Recent sales tax trends; • Quarter 2, 2008 sales tax report: Economic categories and segments; • Measure A sales taxes; and • Local Transportation Fund (LTF) sales taxes. • • Budget and Implementation Committee Minutes October 27, 2008 Page 3 Anne Mayer stated that staff will continue to monitor the Commission's revenues and remain engaged in discussions at the state level. M/S/C (Henderson/Roberts) to: 1) Receive and file the report on Measure A and LTF revenues; 2) Receive and file the sales tax analysis for Quarter 2, 2008; and 3) Forward to the Commission for final action. 9. AMENDMENT TO AGREEMENT FOR ON -CALL STRATEGIC PARTNERSHIP ADVISOR SERVICES Michael Blomquist, Toll Programs Director, provided an overview of the amendment with KPMG Corporate Finance, LLC (KPMG), to continue to provide on -call financial advisory services for the proposed State Route 91 and Interstate 15 projects. In response to Commissioner Henderson's question, Michael Blomquist replied that innovative financing could include user based financing and selling toll revenue bonds as alternatives to state and federal funding. Commissioner Henderson stated that while she agrees that the Commission needs to explore all financing options, she cautioned against any financing that was too innovative. Anne Mayer noted that the process the Commission has started with respect to alternatives to traditional financing and tolling facilities is having a ripple effect into other counties. It is becoming a crucial part of being able to fund infrastructure improvements when there are no other sources of funding available. M/S/C (Magee/Henderson) to: 1) Approve Agreement No. 06-66-026-06, Amendment No. 5 to Agreement 06-66-026-00, for On -Call Strategic Partnership Advisor Services with KPMG to provide continuing on -call financial advisory services for the proposed SR-91 and 1-15 corridor improvement projects for the amount of $250,000; 2) Authorize the Chair, pursuant to legal counsel review, to execute the agreement on behalf of the Commission; and 3) Forward to the Commission for final action. • Budget and Implementation Committee Minutes October 27, 2008 Page 4 10. TRANSPORTATION UNIFORM MITIGATION FEE REGIONAL ARTERIAL PROGRAM UPDATE Shirley Medina, Programming and Planning Manager, provided an update on the Transportation Uniform Mitigation Fee (TUMF) Regional Arterial program. M/S/C (Henderson/Adams) to: 1) Receive and file an update on the TUMF Regional Arterial program; and 2) Forward to the Commission for final action. 11. RESOLUTION OF NECESSITY FOR THE INTERSTATE 2151STATE ROUTE 60 EAST JUNCTION PROJECT Min Saysay, Right -of -Way Manager, provided a brief overview of the Resolution No. 08-026, electing to hear future resolutions of necessity for high occupancy vehicle NOV) lane project for the I-215/SR-60 East Junction. M/S/C (Craton/Henderson) to: 1) Adopt Resolution No. 08-026, "Resolution of the Riverside County Transportation Commission Electing to Hear Future Resolutions of Necessity for the High Occupancy Vehicle Lane Project for the 1-215/SR-60 East Junction and Designation of Commission General Counsel to Process Resolution of Necessity Packages for the Project"; and 2) Forward to the Commission for final action. 12. RESOLUTION OF NECESSITY FOR THE STATE ROUTE 74/G STREET TO INTERSTATE 215 INTERCHANGE PROJECT Min Saysay provided a brief overview of the Resolution No. 08-027, electing to hear future resolutions of necessity for the SR-74/I-215 interchange project. M/S/C (Henderson/Craton) to: 1) Adopt Resolution No. 08-027, "Resolution of the Riverside County Transportation Commission Electing to Hear Future Resolutions of Necessity for the SR-74/I-215 Project and Designation of Commission General Counsel to Process Resolution of Necessity Packages for the Project"; and 2) Forward to the Commission for final action. • • • Budget and Implementation Committee Minutes October 27, 2008 Page 5 13. AGREEMENT FOR THE CONSTRUCTION OF PHASE I - PERRIS MULTIMODAL TRANSPORTATION FACILITY IN THE CITY OF PERRIS Edda Rosso, Capital Projects Manager, provided an update for the agreement for construction of Phase I - Perris Multimodal Transportation Facility in the city of Perris. M/S/C (Henderson/Roberts) to: 1) Direct staff to present its award recommendations to the Commission for Agreement No. 09-33-046-00 for the construction of Phase I - Perris Multimodal Transportation Facility adjacent to C Street, between State Route 74 and San Jacinto Avenue in the city of Perris (Perris); 2) Authorize the Chair, pursuant to legal counsel review, to execute the agreement on behalf of the Commission; 3) Authorize the Executive Director or designee, pursuant to legal counsel review, to execute utility relocation and undergrounding agreements with Southern California Edison (SCE) and Verizon for a total not to exceed amount of $190,000 and $175,000 respectively; and 4) Forward to the Commission for final action. 14. ITEMS PULLED FROM CONSENT CALENDAR There were no items pulled from the Consent Calendar. 15. COMMENTS BY COMMISSIONERS/STAFF 15A. Anne Mayer announced: • The latest newsletter on the Mid County Parkway (MCP) has been provided to all Commissioners; • MCP public meetings will be held on October 28-30, and public hearings will be held on November 6 and 12; • The California Transportation Commission will meet in the County of Riverside Administrative Center Board Room on October 29-30. A reception will be held on October 29 from 5:30 p.m, to 7:30 p.m. at the Mission Inn; Budget and Implementation Committee Minutes October 27, 2008 Page 6 16. ADJOURNMENT There being no further business for consideration by the Budget and Implementation Committee, the meeting was adjourned at 9:57 a.m. The next meeting of the Budget and Implementation Committee is scheduled for November 24, 2008 at 9:30 a.m. Respectfully submitted, Jennifer Harmon Clerk of the Board • • t+. • • • RIVERSIDE COUNTY TRANSPORTATION COMMISSION DATE: November 24, 2008 TO: Budget and Implementation Committee FROM: Michele Cisneros, Accounting and Human Resources Manager THROUGH: Theresia Trevino, Chief Financial Officer SUBJECT: Quarterly Financial Statements STAFF RECOMMENDATION: This item is for the Committee to: 1) Receive and file the Quarterly Financial Statements for the period ended September 30, 2008; and 2) Forward to the Commission for final action. BACKGROUND INFORMATION' During the first three months of the fiscal year, staff has monitored the revenues and expenditures of the Commission. The first quarter of the year is primarily directed toward completing fiscal year end closing activities. Staff expects most of the categories to present a more realistic outlook beginning in the second quarter. The operating statement shows the sales tax revenues for the first quarter at 10% of the budget. This is a result of the Governmental Accounting Standards Board (GASB) Statement No. 33. GASB 33 requires sales tax revenue to be accrued for the period in which it is collected at the point of sale. The State Board of Equalization collects the Measure A funds and Local Transportation Fund (LTF) funds and remits them 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 2008. On a cash basis, the Measure A and LTF sales tax revenues are 12% and 11 % lower, respectively than the same period last fiscal year. Receipts continue to remain flat through July 2008, due to effects of the housing market crisis and economic slowdown. Staff continues to persistently monitor the trends in the sales tax receipts and will report to the Commission in early 2009 any necessary adjustments, if any, to the budget for sales tax revenues. Agenda Item 7A 1 Federal, state, and local government reimbursements and other revenues are on a' reimbursement basis, and the Commission will receive these revenues as the projects are completed and invoiced to the respective agencies. The Transportation Uniform Mitigation Fee (TUMF) revenues remitted to the Commission by Western Riverside Council of Governments only reflect one month of receipts. The July 2008 revenues of $1,039,721 were received by the Commission in September 2008. At the time of the preparation of the Quarterly Financial Statements for the period ended September 30, 2008, staff was completing the reconciliation and posting of interest income. Interest will be correctly reflected in the Quarterly Financial Statements for the period ending December 31, 2008. The administrative and program/projects categories are in line overall with the expectations of the budget with the following exceptions: • General administrative expenditures are higher due to a one-time payment in July for the Commission's FY 2008/09 general liability insurance. • Office lease and utilities are slightly over as a result of the rent payment due by the first of each month. The October rent was paid on September 25, 2008. • General projects report a negative actual amount as a result of the accounting for an estimated expenditure accrual for special studies provided as of June 30, 2008 but not yet invoiced through September 2008. • Right-of-way/land expenditures are slightly higher for the first quarter due to contributions made to the Riverside Conservation Authority for the Multi -Species Habitat Conservation Plan. • The Coachella Valley regional arterial program is administered by Coachella Valley Association of Governments (CVAG) and requests reimbursement from the Commission based on available funds and sufficient budget authority. This category is slightly higher due to claims submitted by CVAG during the first quarter. Capital outlay reports a negative amount. This resulted from the estimated expenditure accrual for office improvements made as of June 30, 2008 but not yet invoiced through September 30, 2008. During the first quarter, commercial paper proceeds of $90 million were issued to provide funding for the advancement of 2009 Measure A projects. Staff will continue to monitor the revenues and expenditures and will notify the Commission of any unusual events. Attachment: September 2008 Quarterly Financial Statements Agenda Item 7A • • 2 • RIVERSIDE COUNTY TRANSPORTATION COMMISSION QUARTERLY BUDGET VS ACTUAL 1ST QUARTER FOR THREE MONTHS ENDED 09/30/2008 DESCRIPTION Revenues Sales tax Federal, state and local govemment reimbursements Transportation Uniform Mitigation Fee (TUMF) Other revenues Interest Total revenues Expenditures Administration Salaries and benefits General legal services Professional services Office lease and utilities General administrative expenditures Total administration Programs/projects Salaries and benefits General legal services Professional services General projects Engineering Construction Right of way/Land Local streets and roads Regional arterial Commuter assistance LTF and STA distributions Motorist assistance Planning and programming services Right of way management Rail operations and maintenance Specialized transit Total programs/projects Intergovernmental distribution Capital outlay Debt service Principal Interest Total debt service Total expenditures Excess of revenues over (under) expenditures Other financing sources/uses Operating transfer in Operating transfer out Bond proceeds Total financing sources/uses Net change in fund balances Fund balance July 1, 2008 • Fund balance September 30, 2008 FY 2008/09 BUDGET 220,599,000 77,841,486 7,730,000 24,919,800 7,980,000 339,070,286 1st QUARTER ACTUAL $ 21,010,650 1,517,857 1,039,721 157,371 420,560 REMAINING BALANCE $ (199,588,350) (76,323,629) (6,690,279) (24,762,429) (7,559,440) 24,146,159 (314,924,127) 1,664,800 368,748 151,000 11,850 1,771,300 139,214 415,000 118,330 1,365,900 410,083 5,368,000 1,048,225 5,078,200 898,509 1,847,500 198,781 3,538,625 206,877 8,881,600 (228,626) 71,027,582 1,798,363 106,003,600 663,248 200,238,400 59,325,444 50,085,300 3,782,523 8,781,300 3,921,410 3,424,500 516,070 102,309,000 23,344,889 3,068,300 367,632 10,959,852 744,424 335,000 64,407 8,283,700 169,861 7,763,400 427,961 591,625,859 96,201,773 1,050,000 1,807,852 (14,620) 33,630,000 16,496,400 39,684 50,126,400 39,684 649,978,111 97,275,062 (310,907,825) (73,128,903) 69,125,100 8,573,992 69,125,100 8,573,992 130,000,000 90,000,000 130,000,000 90,000,000 (180,907,825) 16,871,097 475,188,900 531,044,094 294,281,075 $ 547,915,191 1,296,052 139,150 1,632,086 296,670 955,817 4,319,776 4,179,691 1,648,719 3,331,748 9,110,226 69,229,219 105,340,352 140,912,956 46,302,777 4,859,890 2,908,430 78,964,111 2,700,668 10,215,428 270,593 8,113,839 7,335,439 495,424,085 1,050,000 1,822,472 33,630,000 16,456,716 50,086,716 PERCENT UTILIZATION 10% 2% 13% 1% 5% 7% 22% 8% 8% 29% 30% 20% 18% 11% 6% -3% 3% 1% 30% 8% 45% 15% 23% 12% 7% 19% 20/o 6% 16% 0% -1% 0% 0% 0% 552,703,049 237,778,922 (60,551,108) 60,551,108 (40,000,000) (40,000,000) 197,778,922 55,855,194 15% -24% 12% 12% 69% 69% -9% 112% $ 253,634,116 186% 3 lel'Ste 'CPS $ BED 990'69$ 89L'S8Z'LE $ Lt£'4El $ 9El'EtS'CZL $ tZ8'LS9 BZ $ L99'08Z'85 $ Illaa'LL $ ZZL'99 $ 69S'ZZ6'BOZ$ PEOPLL'S$ 6tOLZVEL5 800Z'0£ tegweWes eaueleq punj 660'090'1C9 991'8E8'OS BSE'LZE'9 Z68'EEL PLO L80'ElL ZO£'EB9'lE SSP ZZ6'OE S06'LSO 'LI 114'99 6ZVEZtltZ L69'l L9'S LEVS21'0L BOOZ 'I APT saueleq punj ' L60'1L8'91. 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BACKGROUND INFORMATION: Attached are the quarterly investment and cash flow reports as required by state law and Commission policy. The county of Riverside's Investment Report for the month ended September 30, 2008, is also attached for review. Attachments: 1) Quarterly Investment Report for the Quarter Ended September 30, 2008 2) County of Riverside Investment Report for the Month Ended September 30, 2008 Agenda Item 7B 5 Pol'lfolb Mattrrlty 91 Ooya to 3 Vows 3.0491. O to 90 Oar) Pnrtfdio Invastmant TYpa LAIC O.6i % County POW/Coon Bd_54% Mutual GunM 11.75% Inwstmanl ngraamanls Statement of Compliance All of the above investments and any investment decisions made for the quarter ended September 30, 2008 were in full compliance with the Commission's investment policy as adopted on April 9, 2008. The Commission has adequate cash flows for six months of operations. Signed by. 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AwnoO sllsodao Hues leuageN ADD SONnd ONI1Va3dO 900Z'0£ Iagwaidas :papu3 pound podgy opo;Nod luawlsanul uolsslwwoo uopeyodsueu Alunoo eplsianla • • • SA ETY 0 PRINCIPAL PLIBLIC TRUST MAX4MUM RATE'4 4,4 s .: F `RETURN Pau11V%Donn I.. Treasurer -Tax Collectcir Don Kent Assistant Treasure4Ta Collet:Ea�r, Jan Christensen ChieSP putyTdeas urea Giovane PYza lnvestrne 171ari Durable Goods Orders (-4.5% actual vs. - 1.6% survey) Consumer Confidence (59.8 actual vs.55 survey) Unemployment Rate (6.1% actual vs. 6.1 % survey ) Payroll change(-159000 actual vs.-100000 survey) "Financial Armageddon" Everyone thinks that October is the worst month for the stock market, but statistically it's September. This definitely was the case for stocks and the economy in general in what has become the biggest financial quagmire since the Great Depression; the sub - prime meltdown we have been writing about for sometime now has spread across the globe like radioactive fallout. Our worst fear has been realized with a lack of confidence in our financial system; free markets and capitalism are being shaken to its core as the saga of the "Great Unwind- ng" continues to be written. Towards the end of the month, U.S. Treasury Secretary Henry Paulson pulled out all the stops and con- vinced Congress it had to act. The $700 billion "bailout" was born. On September 29" in a moment of historic import in the U.S. Capitol and on Wall Street, the House of Representatives voted to reject the rescue plan. Paulson subsequently warned that the "failure of the rescue plan • could dry up credit for businesses big and small, making them unable to make payrolls or buy inventory." Vowing to continue working with Congress to revive the rescue plan, Paulson said it was "much too important to simply jet fail. " On Friday, Oct rtongress finally passed a sweeping and controversial financial bailout similar in key ways to one rejected by the House Just two days earlier, with added sweeteners. Like the bill the House rejected, the core of the Senate bill is the govemment's plan to buy troubled assets from financial Institutions. The major aim of the plan is to free up banks to start lending again once their balance sheets are cleared of toxic holdings. Through all of this turmoil, we're happy to report that the Treasurer's Pooled Investment 'Fund has navi- gated this storm well. We have avoided the landmines that have plagued some of the other counties in the state. We will continue to keep our conservative posture and adhere to our investment objectives that have served us so well. Int/ Paul McDonnell Treasurer -Tax Collector September July May Month End Market Value* 4, )8+71, y0�i56,, 515..74 5,015,373,203.02 5,697,633,900.78 h End Book Value 4,876,250,943.87 2 5,019,501,101.27 5,695,352,850.28 (5,194,428.13) (4,127, 898.25) 2,281,050.50 -0.11% 2.96 -0.08% 3.10 1.20 1.13 0.04% 3.28 1.17 1.10 "ate c;i l9`€2t$ A..IL::iut'>rE 1.00 *Market values do not includeaccruedinterest °Ar4 The fed funds rate remained at 2.00% in September. The next FOMC meeting will be held at the end of October. The 2 year T-Note was yielding 2.00% (down 36bps). while the 10 year T-Note was yield- ing 3.85% (up 2bps.) For Septem- ber, the Pool had a decrease of 6bps. in the average monthly yield. 4 3 2 1 0 2 M CG1 3MoUS Treasury Bill 6MoUS Treasury Bill 2 Yr US Treasury Note 5 Yr US Treasury Note 10 Yr US Treasury Note FED Fund Rate 0.92 (0.80) 16 (0.37) 2 (0.36) 2.98 (0.12) 3.85 0.02 2 n Gude Oil (barrel) 100.64 (14.82) Gold (Ounce) 894.45 63,30 DJIA S&P 500 NASDAQ 10,850.70 1166.36 2,091.88 (692.60) (r6.47) (275.64) Pagel • Maturity Distribution 30% 25% 20% 15% 10% 5% 0% 30 days or 30 - 90 90 Days - 1 1 - 2 Years 2 - 3 Years Less Days Year Over 3 Years Sector breakdown M uricipal Bonds Local Agency Obligation TOTAL Market Value WA NI _o 470,513,514 Yield 0.08 3.03 284,873,595 0.16 2.53 131,726,625 1.36 3.83 6,720,000 1.02 3.18 4,871,056,516 1.06 3.04 • A-1 / P-1 or bette 1330% Federal Agency 69 30% Cash Flows2 Month Monthly 1th ee i pts Monthly 14i i3c ¢' Ilishrola ILrgni rcd 1nxP hint. In vrvf Actual ka a'. iS 4:OIttritii Y Ifi T'o 1 1 /2008 743.2 628.,4 _ _ 114.8 114.77 442.4 1 /2009 628.9 1,391.0 (762.1) 183.2 734.7 3/2009 807.6 955.9 (148.2) 148.2 70.0 5/2009 592.5 •,'Js'';AFSM1 1,341.7 (749.2) 371.4 81.9 7/2009 735.3 1,107.9 (372.6) 372.6 27.8 9/2009 564.4 795'.9„ (231.5) - 231.5 26.2 To'rALS 9,nsx.a (2,380.5) ».53 ;;, 2,55o.n s 2.4 a';;. / Treasurer's Institutional Money Market Index (TIMMI) is compiled and reported by the Riverside County Treasurer's Capital Markets division. It is a composite index derived from the average of three multi -billion dollar AAA rated Prime (funds that invest in a diversified portfolio of U.S. dollar denominated money market instruments including 'US. Treasuries, government agencies, bankers' acceptances, rammer- ' cial paper, certificates of deposits, repurchase agree- ments, etc.) portfolios that the Treasurer tracks. Fur- ther details available upon request. =The Pooled Investment Fund cash flow requirements are based upon a 12 month historical cash flow model Based upon projected cash receipts and maturing investments, there are sufficient funds to meet future cash flow disbursements over the next 12 months. • ilitill1111111111,1111111111111111111111111M 14'0' 09'0 " 09'Z Lf'0 61'Z LE'0 1ST LOT 011E Comes)' 0009L'£60 8806 .00'000'000'S' 2 686d 0 '800Z/9Z/Z0 091 XL01N90N+A1NNVB NV0131,401103d 00000000'S OrAdXE£LE 0N1A1 NNVB NV013WOH 03d 00'000'000'S 805dXCC1E NNVB NV01381011 03d• B1H4 (00'000'8Z 000000009 00001 000006Z09 84018lli91'N 00'SB9bSt'Ore >ff¢LC9EE'1ze C61 LC SS1 004 0000911 00009'Z10'9 9Z001 00/00000/ 11'C 00'b LC1 901E 01 00'096'0 000011 00'008'ZOB'9 09'06 00099'LL6'4 00'00 V00001 CO 001 00'000'000'0l 001E 1,9'Z Z9'0 (00'094'OZ) woos 'OL8'4 14'86 0009[066'4 191 491 ZffZ 09'Z LET LET 4Z4 00'09 L'E 09'E 81 0000E'oZ 00'OSB'9Y) OS'Z SEZ SZ'C 0000900 99'Z LE'Z BZ'C (00'005'8E IWZ LC 4f'Z 991E 9Z'L 9Z'f 0'0 00'099'9C) YE'L 1ZZ LL'£ 00'009'21 80'Z SB'l SVC 00'001'01 00'Z 18't 891E 00'000'92 Z8'l 481E 991E 000990Z ZB'L 5C1 OCT 0009Z0 Z9'l 00091/009 90091 00'000'0005 0TOOL'BL6'9 00'091 C58'4 000000904 00'009'LS6'b 00'0S5'9L04 00'090'498'4 00'009.988'6 00'006'1L8'8 00'000 sari• 00'099'£L6'9 000SL'C66'4 6906 00000000'S 90'66 00'000'000'S 6106 00'000000'9 91'68 00'00C 968.0 C906 00009'916'P 2Z'66 00009888'0 9906 00:006'S96'6 Ze68 00000'396'6 0908 00000'0001 L406 00'000'0001 89'66 00'000'000'S Z101/00/60 ZIOZ/Ct/Z0 ZLOL/EL/ 0 10Z/6Z/60 10Z/LZ/L0 10Z/91/40 110Z/L0/40 L 102/10/00 LOZ/9Z/E0 LLOZ/LL/E0 110Z/11/Z0 140Z/10/Z0 OLOZ/LVOL 010Z/6Z/60 O10Z/Z0/80 0102/9Z/LO - 91'L 091 00009'6 - 00'009'600'01 60100E 00'000'000'01 010Z/9Z/L0 9E1 641 9Z1 94'981'S 99'l 6S'1 011E 00'05L'81 98't 9S1 YE'E. 00'00Y'8 99.1 L6.1 90'£ (00'OSL01) 00'096'016'4 00'OSZ'196'9 00009066'6 ZZ'96 69991906'4 C466 000000001 16'66 00'000'000'01 0009Z196'9. 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Z ' `£ I.4111 V A )100f1 xclttnl.V1� NOdn03 NOI1,d111JS3❑ •ty•;.u.L}:}1..;. HIM aisto pun4 }uaul}sanup pa}ood s,.lalnsealy The Treasurer's Pooled Investment Fund was in FULL COMPLIANCE with the Treasurer's Statement of Investment Policy. The County's Investment Policy is more restrictive than the California Government Code. This policy is reviewed annually by the County's Investment Oversight Committee and approved by the County Board of Supervisors. Investment Category LOCAL AGENCY OBLIGATIONS BILLS OF EXCHANGE CERTIFICATE 8 TIM E DEPOSITS REVERSE REPOS fv1ED TER1444°ikfi; 377 -; CaITRUST SHORT TERM FUND t�ilyT„tJAL,F1 SECURED BANK DEPOSITS MORTGAGE PEA$ , P4, C1 N LOCAL AGENCY INVESTM ENT FUNDS QA§H1t) Maximum Maturity Authorized Limit Quality S&P/ Moody's Maximum P.1aturily Authorized `X, Limit Quality Actual Riverside S&P/ Moody's Portfolio 5 YEARS NO LIM IT A/A2/A 3YEARS 15%1$*0MM A/A2/A 2,70% INVESTM ENT 5 YEARS NO LIM IT 3YEARS 2.50% GRADE 0.14% 270 DAYS 40%(1) 730 DAYS 30% AYP YFI 5 YEARS 30% 1YEAR 25%MAX AYP YFI 5.85% 92 DAYS 20% 60 DAYS 10%MAX N/A N/A N/A N/A DAILY LIQUIDITY P/o Board Approved VD% 5 YEARS NO LIM IT 1YEAR 2% N/A NO LIM IT 3YEARS 0%MAX No more than 3096 of this category may be invested with any one commerclal bank Mutual Funds maturity may be interpreted as weighted average maturity not exceeding 90 days 3 Or must have an investment advisor with not less than 5 years experience and with assets under management of $500,000,000. THIS COMPLETES THE REPORT REQUIREMENTS OF CALIFORNIA GOVERNMENT CODE 53646 16 Page 9 • • • RIVERSIDE COUNTY TRANSPORTATION COMMISSION DATE: November 24, 2008 TO: Budget and Implementation Committee FROM: Michele Cisneros, Accounting and Human Resources Manager THROUGH: Theresia Trevino, Chief Financial Officer SUBJECT: Interfund Loan Activity Report STAFF RECOMMENDATION: This item is for the Committee to: 1) Receive and file the Interfund Loan Activity Report; and 2) Forward to the Commission for final action. BACKGROUND INFORMATION: At its April 14, 2004 meeting, the Commission approved the Interfund Loan Policy and adopted Resolution No. 04-009, "Resolution of the Riverside County Transportation Commission to Authorize lnterfund Loans". Subsequently, the Commission requested that the interfund loan activity be reported on a quarterly basis. The attached report includes all interfund loan activity through September 30, 2008. The total outstanding interfund loans aggregate $1,641,726 as of September 30, 2008. Attachment: Interfund Loan Activity Report Agenda Item 7C 17 • • Loan Amount Repayment Amount Date of Loan of Loan Begins Outstanding March 4, 2004 275,000 July 1, 2009 275,000 June 30, 2007 539,689 July 1, 2009 539,689 June 30, 2007 827,037 July 1, 2009 Riverside County Transportation Commission Interfund Loan Activity Report For 1st quarter ended September 30, 2008 Lending Fund Borrowing Fund 1989 Measure A - WC Commuter 1989 Measure A - WC Highway (222) Assistance (226) Purpose of Loan Additional local match for the SR-71 Widening/Animal Crossing Project 1989 Measure A - WC Highway (222) 2009 Measure A - INC Highway Improvements (262) Advance 2009 Measure A 1-215 81Counly project (Maximum loan available of $2 million) (P3012 & P3027) 827,037 1989 Measure A - WC Highway (222) 2009 Measure A - WC Highway Improvements (262) Advance 2009 Measure A working capital Total $ 1,641,726 $ 1,641,726 18 Date Commission Approved December 10, 2003 April 9, 2003 June 13, 2007 RIVERSIDE COUNTY TRANSPORTATION COMMISSION DATE: November 24, 2008 TO: Budget and Implementation Committee FROM: Michele Cisneros, Accounting and Human Resources Manager THROUGH: Theresia Trevino, Chief Financial Officer SUBJECT: Fiscal Year 2007/08 Commission Audit Results STAFF RECOMMENDATION: This item is for the Committee to receive and file the FY 2007/08: 1) Comprehensive Annual Financial Report; 2) Local Transportation Fund (LTF) Audited Financial Statements; 3) State Transit Assistance Fund (STAF) Audited Financial Statements; 4) Compliance Report; 5) Commercial paper Compliance Report; 6) Audit Results Report; 7) Agreed -Upon Procedures Report related to the Appropriation Limit Calculation; 8) Agreed -Upon Procedures Report related to the Commuter Assistance Program incentives; 9) Management certifications; and 10) Forward to the Commission for final action. BACKGROUND INFORMATION: In March 2008, McGladrey & Pullen LLP (McGladrey) was selected to perform an audit of the Commission's basic financial statements included in the Comprehensive Annual Financial Report (CAFR), the LTF, the STAF, and federal awards. Additionally, it was requested to perform agreed -upon procedures related to the annual Appropriations Limit Calculation and the Commuter Assistance Program (CAP) incentives, and to report on compliance with commercial paper debt covenants. The audits, agreed -upon procedures, and compliance procedures for the fiscal year ended June 30, 2008 have been completed, and McGladrey has issued all reports. The Commission's CAFR consists of three sections: introductory, financial, and statistical. While the introductory and statistical sections were not audited by McGladrey, the basic financial statements included in the financial section were audited by McGladrey. The Commission received an unqualified opinion on its Agenda Item 8 19 basic financial statements from McGladrey, which is the highest form of assurance. Limited procedures were performed related to the required supplementary information, "including Management's Discussion and Analysis; 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 reflect the new reporting model as required by GASB Statement No. 34; this is the seventh consecutive year under the new reporting model. The basic financial statements include government -wide financial statements and fund financial statements. Additionally, Management's Discussion and Analysis is required and provides a narrative overview and analysis of the Commission's financial activities for the fiscal year. Financial highlights include net assets of approximately $580 million at June 30, 2008, representing an increase of approximately $20 million from the prior year, and governmental funds fund balances of approximately $531 million at June 30, 2008, representing a decrease of approximately $19 million from the prior year. The audit reports related to the separately issued financial statements of the LTF and the STAF also reflect unqualified opinions from McGladrey. These financial statements are required to be issued separately under the Transportation Development Act (TDA); however, the LTF and STAF financial position and operations are also included in the fund financial statements in the CAFR. These reports noted no matters considered to be a material weakness in internal control and no instances of noncompliance. The Compliance Report, often referred to as the 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 material weaknesses in internal control and no instances of noncompliance. 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 the auditors indicated that nothing came to their attention that caused them to believe that the Commission failed to comply with these covenants. A management letter usually includes recommendations for improvements and operational efficiencies related to internal control and other matters noted during the audit. McGladrey did not have any recommendations or comments on other matters, and, therefore, it did not issue a management letter. The Appropriations Limit Calculation and CAP reports are based on specific procedures agreed to by the Commission and other agencies. For the Agenda Item 8 • • • 20 • • Appropriations Limit Calculation, the auditors noted no exceptions or findings related to the procedures performed. Professional auditing standards require the auditors to communicate to the audit committee, or an equivalent group, to ensure that it is provided with additional information regarding the scope and results of the audit that may assist the group in overseeing management's financial reporting and disclosure process. Such required communications will be discussed with the Audit Ad Hoc Committee at a presentation by McGladrey at a future meeting; however, the auditors have provided a letter that includes the matters to be communicated. As part of the development of the Commission's Accountability Program that commenced following the June 30, 2005 audit, the directors have completed certifications relating to financial reporting and operational disclosures. Attachments: 1) 2008 Comprehensive Annual Financial Report 2) 2008 Local Transportation Fund Financial and Compliance Report 3) 2008 State Transit Assistance Fund Financial and Compliance Report 4) 2008 Compliance Report 5) 2008 Commercial Paper Compliance Report 6) 2008 Communications to the Audit Ad Hoc Committee 7) 2008 Agreed -Upon Procedures Report on Appropriations Limit Calculation 8) 2008 Agreed -Upon Procedures Report on Commuter Assistance Program Incentives 9) 2008 Executive Director and Chief Financial Officer Certification 10) 2008 Directors' Certification Agenda Item 8 21 ATTACHMENT Riverside County Transportation Commission Riverside County, California Comprehensive Annual Financial Report Fiscal Year Ended June 30, 2008 22 Riverside County Transportation Commission Riverside County, Califomia Comprehensive Annual Financial Report Fiscal Year Ended June 30, 2008 Submitted By: Theresia Trevino, Chief Financial Officer 23 • • • Contents Introductory Section Letter of Transmittal i Organizational Chart xii List of Principal Officials xiii Certificate of Achievement xiv Financial Section Independent Auditor's Report 1 Management's Discussion and Analysis 3 Basic Financial Statements Govemment-wide Financial Statements Statement of Net Assets 15 Statement of Activities 16 Fund Financial Statements Balance Sheet--Govemmental Funds 17 Reconciliation of the Balance Sheet of Govemmental Funds to the Statement of Net Assets 18 Statement of Revenues, Expenditures and Changes in Fund Balances--Govemmental Funds 19 Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to the Statement of Activities 20 Statement of Fiduciary Net Assets 21 Notes to Financial Statements 22 Required Supplementary Information Budgetary Comparison Schedules General Fund 44 Major Special Revenue Funds 45 Notes to Required Supplementary Information 46 Other Supplementary Information Nonmajor Govemmental Funds 48 Combining Balance Sheet 49 Combining Statement of Revenues, Expenditures and Changes in Fund Balances 50 Schedule of Revenues, Expenditures and Changes in Fund Balances —Budget and Actual: Nonmajor Special Revenue Funds 51 Capital Projects and Debt Service Funds 52 Schedule of Expenditures for Local Streets and Roads by Geographic Area —All Special Revenue Funds 53 Schedule of Expenditures for Transit and Specialized Transportation by Geographic Area and Source —Ail Special Revenue Funds 54 Schedule of Changes in Assets and Liabilities —Agency Fund 55 24 Contents, Continued • Statistical Section Statistical Section Overview 56 Net Assets by Component 57 Changes in Net Assets 58 Fund Balances of Govemmental Funds 60 Changes in Fund Balances of Govemmental Funds 61 Sources of County of Riverside Taxable Sales by Business Type 62 Direct and Overlapping Sales Tax Rates 63 Principal Taxable Sales Generation by City 64 Measure A Sales Tax Revenues by Program and Geographic Area 65 Ratios of Outstanding Debt by Type 66 Computation of Legal Debt Margin 67 Pledged Revenue Coverage 68 Demographic and Economic Statistics for the County of Riverside 69 Employment Statistics by Industry for the County of Riverside 70 Full-time Equivalent Employees by Function/Program 71 Operating Indicators 72 Capital Asset Statistics by 13 ram 73 25 iverside County �ilLnsportation COMMission October 30, 2008 Rnurxxide County Regional complex 4080 Lemon Street 3rd Floor • Riverside, Cal fornia Mailing Address: Pan Office Bon 12008 • Riverside, California 92502 2208 Phone (951) 787-7141 • Fax (951) 787-7920 • unnuretaorg 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 Comprehensive Annual Financial Report (CAFR) of the Commission for the fiscal year ended June 30, 2008. 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 intemal 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. McGladrey & Pullen, LLP, has issued an unqualified opinion on the Commission's financial statements for the year ended June 30, 2008. 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 the Govemment The Commission was established by state law in 1977 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 goveming 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 26 cities (including the cities of Wildomar and Menifee which were incorporated on July 1, 2008 and October 1, 2008, respectively), and one non -voting member appointed by the Govemor. 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 andlor 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 also serves as the tax authority and implementation agency for the voter -approved Measure A Transportation Improvement Program. Measure A was approved by the County's electorate in 1988 and imposes a hatf-cent sales tax for 20 years, beginning in 1989, to fund a speck program of transportation improvements (1989 Measure A). In November 2002 Riverside County's voters approved a 30-year extension of Measure A through 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 Funds, which are 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. Additionally, the Commission provides motorist aid services designed to expedite traffic flow. These services include the Service Authority for Freeway Emergencies (SAFE), a program that provides call box service for motorists, 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. These services are provided at no charge to motorists and are funded through a $1 surcharge on vehicle registrations. The Commission is financially accountable for SAFE, a legally separate entity which 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 adopt a budget prior to the beginning of each fiscal year. The annual budget, which includes all funds, serves as 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 The economy in Riverside County reflects the nationwide economic slowdown, particularly in the housing sector. In recent years, the County had experienced significant growth due to population increase, available and affordable housing relative to nearby coastal counties, and a more diversified base and growing share of the regional economy. For years, Riverside County's local economy thrived, reflecting the area's 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. The availability of affordable space for both residents and businesses along with improved access to employment centers in Los Angeles and Orange counties were the primary reasons for expansion and growth in recent years. Taxable sales had a solid record of continued growth from fiscal year (FY)1998/99 through FY 2006/07. For FY 2006/07, Measure A sates tax receipts were only slightly increased from the prior year at 1.22% yet, at more than $157 million, represented the highest level of Measure A sales tax receipts in the Commission's history. In the past year, housing prices declined, reflecting the continuing effects of the subprime mortgage crisis. Resets of variable rate mortgages, coupled with decreased demand for housing, have resulted in increasing rates of mortgage foreclosures. Additionally, the national credit crisis has evolved over the past year, resulting in a lack of liquidity in the credit markets; a lack of credit availability, and difficulties in issuing short-term debt. The effects of these factors have been felt to a greater degree in the Inland Empire due to the relatively greater recent growth and the relatively lower average income levels when compared to coastal areas. In FY 2007/08, the effects of the economic slowdown were evident as Measure A sales tax receipts reflected a 7% decrease from the prior year, decreasing to slightly more than $146 million. The state of Califomia (State) and national economy remain in a slow growth period due to the softening housing market, the subprime mortgage crisis, and the turbulent condition of the financial markets and primary financial institutions. The outlook for FY 2008/09 seems to indicate levels of activity lower than that for prior years. For the first four months of FY 2008/09, actual sales tax receipts are about 11.4% behind the prior year. Commission staff has conservatively projected sales taxes revenues at $135 million, similar to the FY 2007108 revised budget. If the year- to-year decrease continues to be at or above the 11.4% figure for the first four months, a downward revision to the • • • revenue projection will be required. The Commission and its staff will continue to assess the situation and determine if a mid -year budget revision is appropriate. Regardless of the recent economic trends, the Commission faces formidable ongoing challenges in terms of providing needed infrastructure enhancements to support a population and an economy that has outgrown the capacity of its existing infrastructure. Fortunately, the foundation of the regional economy continues to retain its fundamental positive attributes, including lower priced real estate with proximity to coastal communities, a large pool of skilled workers, and increasing wealth and education levels. 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 revenues and projecting expenditures ensures that the Commission's expectations are realistic and goals are achievable. Scarce 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. At the state level, there continues to be concerns regarding Califomia's overall budget situation. Govemor Schwarzenegger and the Legislature are faced with an ongoing, structural imbalance in the state budget that may result in the short-term diversion of Proposition 42 transportation funds, which are derived from the sales tax on gasoline. While this would be constitutionally limited to a loan that would have to be repaid in three years, the cash flow impact could impact the delivery of a number of local projects —most notably a number of freeway interchanges that are dependent on State Transportation Improvement Program (STIP) dollars. The news on the federal level is somewhat more promising but even less predictable. Congress has raised the possibility of a major economic "stimulus' effort that could include a significant investment in transportation infrastructure during the early part of the 2009 calendar year. The details of this effort, as well as its prospects for approval, have not been finalized or determined. This will also coincide with Congress's consideration of a new federal authorization bill in 2009 that would replace the current authorization bill known as SAFETEA-LU. The Commission's objective in working with Congress on the new authorization bill will be to secure predictable and substantial investments on key Riverside County transportation corridors including railroad grade separations on the Alameda Corridor East (ACE) and freeway improvements on major interstates such as Interstate (1)10 and 1-15. In December 2006, the Commission approved a multi -year Westem Riverside County Delivery Plan (Delivery Plan) that focuses on investing more than $2 billion in improvements along four major freeways during the first ten years of the 2009 Measure A program. The four freeways are I-10, 1-15,1-215, and State Route (SR) 91. This direction was approved after an updated projection of Measure A revenues through 2039 and an assessment regarding the completion of the 1989 Measure A highway program. In order to make the needed investments, the plan will rely on Measure A, STIP, and Proposition 1 B dollars as well as the development of high occupancy toll lanes on 1-15 and the extension of the 91 Express Lanes into Riverside County. Yi3 INSERT _COUNTy MAP-(GEO) Major Initiatives Capital Project Delivery and implementation The Capital Project Development and Delivery Department is responsible for major highway, regional arterial,and rail capital projects from initial environmental study through preliminary engineering, final design, right of way acquisition, and construction. This past year was one of significant accomplishments for the Commission as progress was made on a number of major projects. Difficult funding decisions were made on millions of dollars in transportation projects to expand freeways, improve mobility on streets and roads, and improve rail passenger facilities. Highways. The Commission's most ambitious highway transportation project, which commenced construction in early 2004, brings major improvements to the SR-60/SR-91/1-215 interchange, including direct connectors, truck lanes, soundwalls, and new and widened bridges to improve the efficiency of this interchange. A cooperative project with the Califomia Department of Transportation (Caltrans), the interchange reconstruction was completed in Fall 2008. While the reconstruction of the SR-60/SR-91/1-215 interchange is a 1989 Measure A project, it is financed primarily from STIP dollars. In 2003 funding for these improvements became uncertain as a result of the State's budget woes and dependence on STIP dollars to balance its general fund budget. To ensure the timely commencement of construction, the Commission loaned the State $31.3 million in Measure A dollars under an AB 3090 process following approval by the California Transportation Commission (CTC) in September 2003. This advancement of local dollars was reimbursed by the CTC in August 2006. The Commission has continued to provide financial support to this project as necessary in order to ensure timely project completion. The AB 3090 process was utilized in prior years to ensure construction commencement of two significant projects on SR-60 and SR-91. The Commission approved the allocation of federal Congestion Mitigation and Air Quality Program (CMAQ) dollars, advance of Transportation Uniform Mitigation Fee (TUMF) funding, and utilization of the commercial paper program for these projects. Construction was completed in late 2007 on the SR-60 high occupancy vehicle (HOV) lane and a general-purpose lane project. In August 2008, the CTC approved repayment to the Commission of $21 million that was loaned from the Commission's share of CMAQ funds to replace suspended Traffic Congestion Relief funding. Construction commenced in February 2007 for the improvements on the Green River Road interchange at SR-91. This project will improve ramps and widen the bridge that currently spans SR-91, resulting in iv 29 • • • increased capacity at this interchange for Corona residents. The advancement of TUMF local dollars to the State will be repaid with a future State funding commitment on TUMF regional projects. Another 1989 Measure A effort that is benefiting motorists is improvements to SR-111 in the Coachella Valley. Improvements have been completed in a number of cities in the past year including three projects in the city of Palm Desert. As is the case with all arterial improvements in the Coachella Valley, the funding for the project and project development is a cooperative effort between the Commission, the Coachella Valley Association of Govemments (CVAG), and affected cities. The SR-60/I-215 East Junction HOV connector project is currently in the design phase. This project will provide two HOV bridges that will connect the SR-60 HOV lanes constructed by the Commission in Moreno Valley to the HOV lanes that were constructed on the SR-60/SR-91/1-215 interchange and corridor improvement project that was recently completed in Fall 2008. The SR-60/I-215 East Junction project is anticipated to begin construction in December 2009 with an estimated completion date of Spring 2013. The SR-91 HOV project from Adams Street to the SR-60/SR-91/1-215 interchange was approved for Corridor Mobility Improvement Account (CMIA) funding of $157.2 million related to the construction phase. The environmental document was approved in August 2007. Caltrans is currently working on the design phase which is 40% complete. Given the stringent deadlines associated with the CMIA projects, the Commission and Caftans District 8 are partnering on the right of way activities. It is anticipated that the project will begin construction in June 2011 with an estimated completion date of June 2015. Another remaining 1989 Measure A project is the SR-74/G Street to 1-215 interchange. This project is in the final stages of preliminary engineering and environmental clearance and has begun final design. The project will realign and widen the on -ramps from SR-74 to 1-215 and widen the Redlands Avenue overcrossing. The project is funded with TUMF zonal funding and Measure A funds. The funding is in place for the design and right of way efforts. Programming requests for the TUMF zonal funds have been made in anticipation of construction advertisement in late 2009. The project construction will begin shortly thereafter and take approximately 24 months to complete. Two projects make up the 1-215 widening projects included in the 2009 Measure A Delivery Plan. The first is the I- 215 mixed flow lanes from 1-15 to Scott Road. This project will provide a third mixed flow lane in each direction of the existing median of 1-215. Final design will begin in late 2008 with construction commencing in early 2010. The project is funded with STIP funds and was approved for CMIA funding of $38,600,000 for the construction phase. The second 1-215 Widening Project is the 1-215 mixed flow lanes from Scott Road to Nuevo Road. This project will also add a third mixed flow lane in each direction of 1-215. The project is currently 40% complete for environmental clearance and preliminary engineering. Final design will begin in early 2010 with construction starting in 2013. The project is funded with STIP, Measure A, and other sources. Commuter Rail. Since 1993 the Commission has held title to and managed the 38-mile San Jacinto Branch Line (SJBL) and several adjacent properties in anticipation of offering Metrolink commuter rail service to a wider area of the County, initially including Moreno Valley and Perris and ultimately to Hemet/San Jacinto and down to Temecula. The Commission released a Draft Environmental Assessment for the expansion of commuter rail service along the SJBL in 2004 and has held a series of public meetings to encourage public input into the environmental clearance process. These meetings and related marketing efforts have also raised the level of awareness and public support for the project, which is now referred to as the Perris Valley Line. In September 2007 a Small Starts application was submitted to the Federal Transit Administration (FTA) requesting authorization to enter into project development for the Perris Valley Line rail extension project. In December 2007 the Commission received approval from the FTA with a project rating of medium -high. The 2006 STIP also allocated $30 million to the project. New commuter rail service on the Perris Valley Line is anticipated to commence in late 2011. The Senate has approved $50 million in federal funding for the Perris Valley Line project as part of the Senate Transportation, Housing, and Urban Development appropriations bill, consistent with recommendations from the FTA v 30 and the White House, which had previously included the $50 million amount in the proposed federal budget for FY 2008/09. An ongoing concern for Metrolink passengers is the need for additional parking capacity at the Commission's stations. In February 2007, the Commission completed construction to add 300 parking spaces to the Downtown Riverside station on the east side of the tracks, which provides more capacity as well as easier access for passengers to trains on the Inland Empire -Orange County Line (1E0C). Future plans also call for more parking spaces and a new parking structure at the North Main Corona station. In 2007 the funding was secured, and the final design completed for the new $25 million, 1,000 space parking structure. Construction began in early 2008 with a comprehensive strategy to provide parking alternatives for the displaced Metrolink riders during construction. With the continued growth of patronage, commuter rail's challenges for the future include securing state or federal allocations for more passenger coaches and for additional train storage and maintenance facilities. Toll Program Moves Forward In September 2008 two landmark legislative bills were passed by the California State Legislature and signed by Govemor Schwarzenegger that have major significance to the Commission. The first bill, SB1316 (Correa), allows for the extension of the 91 Express Lanes from the Orange/Riverside County line to 1-15. This bill was co -sponsored by both the Orange County Transportation Authority (OCTA) and the Commission and provides benefits for both counties. This bill will allow the Commission to construct two express lanes (or toll lanes) in each direction in the median of SR-91. The extension of these lanes will provide more choices for Riverside County drivers, improve congestion on the general-purpose lanes, and ensure a speedy, uncongested trip for drivers willing to pay a toll. The SR-91 Corridor Improvement Project includes these express lanes as well as numerous non -toll lane improvements including an additional lane in each direction on SR-91 as detailed in the 2009 Measure A program. Environmental studies and preliminary engineering work are expected to be completed in early 2011. The project is planned to be operational in late 2015 assuming the design -build method of project delivery and 2018 assuming the design -bid - build method of project delivery. The second bill, AB1954 (Jeffries), provides the Commission the state authority to toll the 1-15 corridor within Riverside County. This bill will allow the Commission to construct two express lanes in each direction in the median of 1-15. The first phase of these lanes is planned to extend from SR-74 in the south to the San Bernardino/Riverside County line to the north, approximately 31 miles. The lanes will have the same benefits mentioned previously for the 91 Express Lanes extension. The 1-15 Corridor Improvement Project includes these toll lanes as well as numerous non -toll lane improvements including an additional lane in each direction on 1-15 as detailed in the 2009 Measure A program. This project's environmental studies and preliminary engineering work are scheduled to be completed in early 2012. The project is planned to be operational in 2019. The passage of these bills is a major milestone for the Commission. The legislation supports the Commission's long- term plan to deliver freeway improvements using tolling as a new source of funding to complement more traditional funding sources. These projects will also mark the introduction of tolling to the Inland Empire region of Southem California. TUMF Plays an Important Role 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 CVAG, which oversees the arterial program and has been successful in funding a number of important arterial projects. With the passage of the 2009 Measure A, a TUMF program with participation requirements similar to that in the Coachella Valley is now in place in westem Riverside County (Western County). As provided for in the 2009 Measure A, the first $400 million in TUMF funding is to be allocated to the Commission to be split evenly between new vi • • • 31 • • • corridors and regional arterials. In 2003, the Commission and the Westem Riverside Council of Governments (WRCOG) entered into a MOU to split the arterial revenue between both agencies in accordance with the TUMF Nexus Study until the 2009 Measure A took effect The agreement further stipulated that if upon. July 1, 2009 the $400 million was not repaid, 100% of the TUMF funds would then go to the Commission until the $400 million was satisfied. Given the current economic conditions, it was determined that the $400 million would not be paid to the Commission by July 1, 2009. In order to prevent a disruption of funding for TUMF projects, WRCOG and the Commission agreed on lifting the $400 million cap, resulting in the Commission receiving an equal share of the TUMF regional arterial revenue indefinitely. The MOU and Administrative Plan were amended to reflect this agreement at the August 2008 WRCOG and September 2008 Commission meetings. In fiscal 2005, the Commission took its first steps to allocate its share of Western County TUMF revenues with allocations for the development of the Mid County Parkway and the SR-79 realignment and to project development for 24 regional arterial projects throughout Westem County. Since the inception of the program, the Commission has programmed more than $73 million in TUMF funding related to the approval of funding for the regional arterial projects that approximates $180 million. Rail Development, Operations and Support The County's participation in commuter rail service began with the 1989 Measure A. Riverside County voters were the first to specify commuter rail service in Southern California as a priority transportation improvement project. The subsequent passage of similar measures in adjoining counties and the passage of statewide rail infrastructure bonds in 1990 provided enough capital funding to build the initial system. As one of five funding partners in the Southem Califomia Regional Rail Authority (SCRRA), which operates the Metrolink commuter rail service, the Commission is engaged in a continual exercise of consensus building with its partners. Now consisting of seven lines, serving origins and destinations in six counties, the system carves an average of 47,000 passengers each weekday. The Commission owns and operates five stations served by the three Metrolink lines operating through the County: ➢ Riverside Line (1993): Originates in the Downtown Riverside station and stops at the Pedley station before proceeding through Ontario, Pomona, Industry, and Montebello to Los Angeles Union Station. Ridership has improved this past year with better on -time performance and is now carrying approximately 5,200 daily riders. ➢ 1E0C Line (1995): Begins in nearby San Bemardino with stops in the Downtown Riverside, La Sierra, North Main Corona, and West Corona stations before entering Orange County with stops in Anaheim, Orange, Santa Ana, Tustin, Irvine, Laguna Niguel/Mission Viejo, and San Juan Capistrano. Described as the first suburb -to -suburb commuter rail service in the nation, the IEOC line has experienced increased patronage with an average daily ridership that exceeds 4,800. ➢ 91 Line (2002): Provides another alternative to commute from Riverside to Los Angeles with stops in Riverside, Orange, and Los Angeles counties. Patronage on the line has remained steady with an average daily ridership of 2,300. Ridership increases on both the IEOC and Riverside Lines in the past year reflect confidence in Metrolink services and a reaction to higher fuel prices and improved on -time performance. In addition to regular weekday service, the Commission partnered with the OCTA and San Bemardino Associated Governments (SANBAG) to provide weekend service along the IEOC. Three round trip trains on Saturday and two round trips on Sunday serve as another link between Orange and Riverside counties and provide an effective transportation alternative for weekend travel. Planning for the Future In terms of future progress, the Commission has given its unanimous support to the Riverside County Integrated Project (RCIP) and its transportation component, the Community and Environmental Transportation Acceptability vii 32 Process (CETAP). The RCIP was intended to be a model for streamlining the environmental process while providing for the long-term devebpment and economic growth of the County. The County and the Commission worked together in a first -of -its kind endeavor to provide for new transportation options and land use planning to support the economic growth of the County while providing for preservation of open space and protection for endangered species. CETAP addresses the impact of future population and economic growth on the existing transportation system by identifying and establishing new transportation corridors and arterial system improvements. The entire CETAP program was recognized under President Bush's Executive Order for Environmental Streamlining and Stewardship. The Commission's CETAP focuses on four new transportation corridors: two located within the County and two that would link Riverside County with the neighboring counties of Orange and San Bernardino. Each of the corridors is progressing on differing' schedules as noted below: ➢ Internal north/south transportation corridor between Winchester and Temecula. As a result of the Tier 1 environmental work completed, the Commission now can protect right of way for the future widening of I-15 and 1-215 in the south County area as well as a future French Valley Parkway connection from Winchester Road to 1-15. ➢ New East-West Internal Corridor. The Mid County Parkway project is a proposed 32-mile transportation corridor designed to relieve local and regional traffic congestion in the San Jacinto, Perris, and Corona areas. Since 2004, the Commission, County, local cities, and resource agencies from the state and federal govemments have participated in the development of an environmental document. The draft environmental document has recently been completed and is now undergoing public review. Finalization of the document is expected in 2009. ➢ New transportation corridors and alternatives between Riverside and Orange counties: In 2005 the Commission completed a Major Investment Study in cooperation with OCTA and the Transportation Corridor Agencies (TCA) to evaluate potential projects. The locally preferred strategy includes a combination of improvements to SR-91 as well as consideration of new facilities to improve mobility between the two counties. The Commission is currently conducting geotechnical feasibility tests in the Cleveland National Forest to determine the feasibility of a tunnel structure. The overall effort gamered a financial boost with a $15 million Congressional earmark. ➢ New transportation corridor and arterial improvements between Riverside and San Bernardino counties: A combination of arterial improvements and a new transportation facility have been studied in a joint effort between the Commission, SANBAG, and local cities to improve mobility between the two counties. The County of Riverside, in cooperation with the affected jurisdictions, is currently conducting the required environmental work for the arterial improvements. Another large planning effort affecting the Hemet and San Jacinto communities is the realignment of SR-79. This 2009 Measure A project is undergoing early project development funded through the TUMF program and federal earmarks. An environmental document is being prepared in cooperation with local, state, and federal agencies to allow the realignment of SR-79 between Domenigoni Parkway, south of SR-74, and Gilman Springs Road, north of San Jacinto. The project would realign the highway to provide a more direct route within the San Jacinto Valley. A draft document is anticipated to be available for public review in mid-2009. Commuter Assistance Program The Commission's Commuter Assistance Program provides a variety of rideshare services and products both to employers and commuters. Through voluntary participation, commuters and employers receive a direct benefit from their sales tax dollars, and the entire region benefits from reduced traffic congestion and improved air quality as a result of trip elimination or use of alternative means of transportation. The Commission's continued success in • • • 3� • • • serving commuters and employers within the County resulted in SANBAG's renewal of its contract with the Commission, for the twelfth year, to provide an identical commuter assistance program for San Bernardino County residents. This unique bi-county partnership allows for greater cost efficiency in program delivery and consistency of program application for all Inland Empire participants. At the core of the Commuter Assistance Program are employer partnerships. To support voluntary efforts by local employers in implementing and maintaining rideshare activities at work sites, rideshare services, tools and resources are provided to Riverside and San Bernardino County employers. Employer partners also gain access to various incentives for their employees and function as an efficient and effective delivery mechanism for the program's commuter products. The most prominent commuter product continues to be the Advantage Rideshare Program, a short-term incentive project, which offers $2 per day for each day new ridesharers use an alternate mode of transportation in a three-month period. Long-term ridesharers are recognized and rewarded for their continuing commitment to use altemate modes of transportation to and from work through the Club Ride Program. The Commission's program also extends beyond the borders of the Inland Empire. To support coordinated and efficient services through a five -county region that includes transportation agencies in Los Angeles, Orange, San Bemardino, and Ventura counties, the Commission operates two key regional ridershare components. The first is the Regional Rideshare Database that serves as a central depository for commuter transportation surveys and as the region's primary ridematching application. The other element of regional significance is the www.commutesmarLinfo website that the Commission administers. This website provides a one -stop online resource for both commuters looking to rideshare, get transit or traffic information and for employers looking to implement or maintain a ridesharing program at their worksite. In providing commuter benefits to employers and employees during FY 2007/08, the program attracted 1,097 drive alone commuters to participate in the Advantage Rideshare program. Club Ride membership peaked at 5,279 members for the same period. Both programs recorded a 19% increase in participants. The rise in fuel prices toward the end of FY 2007/08 also generated a lot of interest in ridesharing that is reflected in a 40% increase to the program's call center, 866-RIDESHARE, compared to last year's call volumes. Finally, using air quality mitigation grant funds awarded by the County of Riverside, the Commission expanded its service area into the Coachella Valley. The benefits of ridesharing were promoted both to employers and commuters in FY 2007/08, the first of a two-year Coachella Valley demonstration, and resulted in over 15,000 one-way trips reduced, 223,400 miles saved, and approximately 4,400 pounds of emissions reduced. Specialized Transit The Commission has maintained a long-term commitment to assist in the mobility of those with specialized transit needs. Through its Specialized Transit Program, the Commission has provided millions of dollars to public and nonprofit transit operators to assist in the provision of special transit services to improve the mobility of seniors and persons with disabilities. During FY 2007/08, the nonprofit operators provided approximately 86,995 Measure A trips. Along with support of 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. During the last quarter of FY 2007108, the Commission adopted the Specialized Transit Coordinated Plan (Coordinated Plan), making the Commission eligible for federal funding of specialized transit in Riverside County. Concurrent with the adoption of the Coordinated Plan, the Commission also authorized staff to conduct a Universal Call for Projects for Specialized Transit (Universal Call) to vet the projects eligible to receive the new federal funds. Using this competitive process allowed the Commission to seek proposals from a wide range of providers and make decisions with respect to funding specialized transit that results in the most efficient delivery of trips. The Universal Call included approximately $1.9 million in new federal funding augmenting the $6 million in Measure A committed locally by the Commission. The Universal Call resulted in the award in FY 2008/09 of two-year contracts to selected providers in both Western Riverside County and the Coachella Valley. ix 34 Motorist Assistance Programs In cooperation with the Califomia Highway Patrol (CHP) and Caltrans, the Commission, in its capacity as the SAFE, assists motorists who experience accidents, mechanical breakdowns, or other unforeseen problems by providing access to cellular call boxes along the County's major highways. The Commission's system includes 630 call boxes serving more than 650 miles of highways. The call box program is funded by an annual $1 surcharge added to vehicle registrations. Each call box is a battery -powered, solar -charged roadside terminal containing a microprocessor and cellular telephone. Spacing between call boxes ranges from one-half mile in high traffic areas to two miles in remote areas of the County. Call boxes are installed on the three interstates, U.S. Route 95, and the 14 state routes located within the County as well as park and ride lots and commuter rail stations. The phones are programmed to call a private call answer center, and the call box operator responds to the call by routing emergency calls to the CHP for appropriate services (i.e., ambulance, tow truck, fire, or police unit) or providing a direct connection to routine service through auto clubs or other private tow and service providers. Call box operators answered approximately 7,600 calls during FY 2007/08. In an effort to relieve congestion and reduce pollution, the Commission provides an additional motorist assistance program with the FSP. The FSP program is a special team of 20 tow trucks traveling along portions of SR-60, SR-91, 1-15, 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 remove disabled vehicles from the freeway as quickly as possible to help keep freeway traffic moving during rush hour periods. Services provided are free to the motorist and include changing a flat tire, providing one gallon of fuel, taping radiator hoses, or towing the vehicle off the freeway to designated locations where the motorist can make other arrangements for repair. The FSP is funded by the Riverside County SAFE and the State. During FY 2007/08, the FSP provided assistance to approximately 45,500 motorists. Another effort augments existing FSP service with additional tow trucks in construction areas as another means of construction -related congestion mitigation during peak commuter hours. This is currently taking place on SR-91 to mitigate congestion during construction on the La Sierra Avenue and Green River Road interchange projects. Goods Movement The impact of delays caused by freight trains traveling through Riverside County is rapidly becoming one of the area's most pressing transportation concems. In fact, the Commission adopted, as its number one priority for the upcoming federal reauthorization bill a robust federal investment in ACE grade separations. There are currently 61 at -grade ACE crossings in Riverside County which present conflicts between rail and highway traffic. Of the 61 crossings, three either have been completed or are scheduled for completion by 2009. Thirty-one remain as a Commission priority that requires funding. The cost of constructing grade separations at the 31 locations is currently estimated at $1.7 billion, yet only $414.8 million is currently committed through federal, state and local funding sources. At the October 2008 Commission meeting, the Commission approved a strategy for funding 20 of the 31 crossings for a total project cost of $980.5 million. The balance of the needed funds—$565.7 million —will be included as part of Commission's strategy for the upcoming federal transportation reauthorization bill. 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 CAFR for the fiscal year ended June 30, 2007. This was the 15th straight year the Commission has received this prestigious national award, which recognizes conformance with the highest standards for preparation of state and local government financial reports. In order to be awarded a Certificate of Achievement, a government unit must publish an easily readable and efficiently organized CAFR conforming to program standards. Such CAFR must satisfy both GAAP and applicable legal requirements. x • • 35 • • • This award for financial reporting excellence is valid for a period of one year only. We believe our current report continues to conform to the GFOA program's requirements, and we are submitting it to the GFOA for consideration for another certificate. The CAFR 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, Commission's auditors, and the program management and staff for the time, effort, and commitment so vital for the final completion of the CAFR. In closing, without the leadership and the support of the Board, preparation of this report would not have been possible. Its prudent management must be credited for the strength of the Commission's fiscal condition, and its vision ensures that the Riverside County Transportation Commission will be on the move planning for and building a better future. Very truly yours, f ANNE MAYER Executive Director xi THERESIA TREVINO Chief Financial Officer 36 • • x. Riverside County Transportation Commission Organizational Chart Policy Committees • Plans & Programs • Budget & Implementation • Property Mubimodal Programs —Commuter Assistance — Call Box Program —Freeway Service Patrol —Rail Operations — Transit Planning Advisory Committees • Technical Advisory • Citizens Advisory i Administration ♦ / 1 — Clerk of the Board & Board Relations — Office & Records Management — Disadvantaged Business Enterprise —Claims & Insurance Administration — Human Resources Board of Commissioners Executive Committee Legal Counsel Executive Management Legislative Affairs & Communications \ i —Legislative Advo acy —Legislative Analysis —Public Information & Communications —Media Relations —Goods Movement (agile' Project ‘ Development & Delivery —Highway & Roil Capital Programs — New Corridors —Property Management — State Transportation Improvement Program —Regional Transportation Plan —Congestion Management —HMV Program 1 Finance — Finandal Mama ment — Budget Development - Contract Management & Proaremeni • • • Name and Position Jeff Stone Bob Magee Bob Buster Bob Botts Roger Berg Joseph DeConinck John Chlebnik Mary Craton Gregory S. Pettis Eduardo Garcia Jeff Miller Yvonne Parks Robin Lowe Patrick Mullany Michael H. Wilson Terry Henderson Frank West Rick Gibbs Frank Hall Dick Kelly Ginny Foat Daryl R. Busch Gordon Moller Steve Adams Chris Carlson Ron Roberts John F. Tavaglione Roy Wilson Marion Ashley Karla SuIcliff Riverside County Transportation Commission List of Principal Officials As of June 30, 2008 Board of Commissioners Title Chair (Commission) 1a Vice Chairman (Commission) 2nd Vice Chairman (Commission) Member Vice Chairman (Budget & Implementation Committee) Member Member Member Member Member Member Member Member Member Vice Chairman (Plans & Programs Committee) Member Chairman (Plans & Programs Committee) Member Member Member Member Member Member Chairman (Budget & Implementation Committee) Member Member Member Member Member Governor's Appointee Anne Mayer, Executive Director John Standiford, Deputy Executive Director Cathy Bechtel, Director of Project Development Marlin Feenstra, Director of Project Delivery Theresia Trevino, Chief Financial Officer Robert Yates, Director of Multimodal Services Management Staff. Agency County of Riverside, District 3 City of Lake Elsinore County of Riverside, District 1 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 City of Desert Hot Springs City of Hemet City of Indian Wells City of Indio City of La Quinta City of Moreno Valley City of Murrieta City of Norco City of Palm Desert City of Palm Springs City of Perris City of Rancho Mirage City of Riverside City of San Jacinto City of Temecula County of Riverside, District 2 County of Riverside, District 4 County of Riverside, District 5 Ca!trans District #8 38 Certificate of Achievement for Excellence in Financial Reporting Presented to Riverside County Transportation Commission California For its Comprehensive Annual Financial Report for the Fiscal Year Ended. June 30, 2007 A Certificate of Achievement for Excellence in Financial Reporting is presented by the Government Finance Officers Association of the United States and Canada to government units and public employee retirement systems whose comprehensive annual financial reports (CAFRs) achieve the highest standards in government accounting and financial reporting_ President Executive Director 39 • • • McGladrey& Pullen Certified Public Accountants Independent Auditor's Report Board of Commissioners Riverside County Transportation Commission Riverside, California . We have audited the accompanying financial statements of the govemmental activities, each major fund and the aggregate remaining fund information of the Riverside County Transportation Commission {the Commission} as of and for the year ended June 30, 2008, which collectively comprise the Commission's basic financial statements as listed in the table of contents. These financial statements are the responsibility of the Commission's management. Our responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in accordance with 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. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinions. In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, each major fund, and the aggregate remaining fund information of the Commission as of June 30, 2008, and the respective changes in financial position for the year then ended, in oonformity with accounting prindples generally accepted in the United States of America. In accordance with Govemment Auditing Standards, we have also issued our report dated October 30, 2008 on our consideration of the Commission's internal control over financial reporting and our tests of its compliance with certain provisions of laws, regulations, contracts and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of intemal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be considered in assessing the results of our audit. The management's discussion and analysis and budgetary comparison information, as listed in the table of contents, are not a required part of the basic financial statements but are supplementary information required by the accounting principles generally accepted in the United States of America. We have applied certain limited procedures, which consisted principally of inquiries of management regarding the methods of measurement and presentation of the required supplementary information. However, we did not audit the information and express no opinion on it. MoGladrey 8 Pullen, LIP is a member firm of RSM International, an affiliation of separate and independent legal entities. 40 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 and other schedules, 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 has been subjected to the auditing procedures applied in the audit of the basic financial statements and, in our opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole. The accompanying introductory and statistical sections, as listed in the table of contents, are presented for purposes of additional analysis and are not a required part of the basic financial statements. This information has not been subjected to the auditing procedures applied in the audit of the basic financial statements and, accordingly, we express no opinion on them. free, e�� Riverside, Califomia October 30, 2008 2 41 • • Riverside County Transportation Commission Managements Discussion and Analysis Year Ended June 30, 2008 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, 2008. We encourage readers to consider the information on financial performance presented here in conjunction with the transmittal letter on pages i-xi and the Commission's financial statements which begin on page 15. Financial Highlights • Total net assets of the Commission were $580,184,242 and consisted of invested capital assets, net of related debt, of $207,478,034; restricted net assets of $521,711,172; and unrestricted net asset (deficit) of ($149,004,964). • The unrestricted net asset (deficit) results primarily from the recording of the debt issued for Measure A highway, local street and road, and regional arterial projects. As title to those assets vests with the State of Califomia (State) Department of Transportation (Ca'trans) 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. • Net assets increased by $19,830,823 during fiscal 2008. General revenues consisting primarily of sales taxes and investment earnings are the major funding source for the govemmental activities. The change in net assets was lower than in prior years due to the decline in sales taxes and Transportation Uniform Mitigation Fee (TUMF) revenues as a result of a slowdown in the local economy. • Total capital assets, net of accumulated depreciation, were $212,321,328 at June 30, 2008, representing an increase of $53,405,583, or 34%, from June 30, 2007. The increase in capital assets was primarily related to the purchases of land for the Mid County Parkway, a proposed Community Environmental Transportation Acceptability Process (CETAP) corridor. • The Commission's govemmental funds reported combined ending fund balances of $531,044,094, a decrease of $19,116,519 compared to fiscal 2007. Approximately 77% of the govemmental fund balances represent amounts available for the Measure A program, including debt service and funding from the issuance of sales lax revenue bonds and commercial paper notes, 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 basic financial statements. Government -wide Financial Statements The govemment-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. 3 42 The statement of net assets presents information on all of the Commission's assets and liabilities, with the difference between assets and liabilities reported as net assets. Over time, increases or decreases in net assets may serve as a useful indicator of whether the financial position of the Commission is improving or deteriorating. The statement of activities presents information showing how the Commission's net assets changed during the fiscal year. All changes in net assets are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of related cash flows. The government -wide financial statements report the functions of the Commission that are principally supported by sales taxes and intergovernmental revenues, or govemmental activities. The governmental activities of the Commission include general government, the Measure A program, CETAP, regional arterials, commuter rail, transit and specialized transportation services, planning and programming, bicycle and pedestrian projects, motorist services, and right of way management. Measure A program services are divided within the three regions of Riverside County (County), namely Western County, Coachella Valley, and Palo Verde Valley. The government -wide financial statements include only the Commission and its blended component unit. The government -wide financial statements can be found on pages 15-16 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. All of the Commission's funds can be divided into two categories: governmental funds and fiduciary funds. Govemmental funds are used to account for essentially the same functions reported as govemmental 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 govemment-wide financial statements. As a result, readers may better understand the long-term impact of the government's near -term financing decisions. Both the govemmental fund balance sheet and related statement of revenues, expenditures and changes in fund balances provide a reconciliation to facilitate this comparison between govemmental funds and govemmental activities. The Commission maintains 12 individual govemmental 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 Westem County, Measure A Coachella Valley, Transportation Uniform Mitigation Fee, and Local Transportation Fund Special Revenue funds; Commercial Paper Capital Projects fund; and Debt Service fund. Data from the other five govemmental 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, all Special Revenue funds, all 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 for the nonmajor Special Revenue funds and the Capital Projects and Debt Service funds as other supplementary information to demonstrate compliance with these budgets. 4 • • • 43 • • • The govemmental fund financial statements, including the reconciliation between the fund financial statements and the govemment-wide financial statements, can be found on pages 18-20 of this report. Fiduciary funds are used to account for resources held for the benefit of parties outside the Commission. Fiduciary funds are not reflected in the govemment-wide financial statements, as the resources of those funds are not available to the Commission to support the Commission's own programs. The fiduciary funds are accounted for using the accrual basis of accounting. The fiduciary fund financial statements can be found on page 21 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 govemment-wide and fund financial statements. The notes to the financial statements can be found on pages 2242 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 conceming the Commission's budgetary results for the General fund and major Special Revenue funds with appropriated budgets. Required supplementary information can be found on pages 44-46 of this report. The combining statements referred to earlier relating to nonmajor govemmental funds are presented immediately following the required supplementary information. Other supplementary information includes budgetary results for the nonmajor Special Revenue funds, all Capital Projects funds, and the Debt Service fund as well as schedules of expenditures for local streets and roads, expenditures for transit and specialized transportation, and changes in assets and liabilities for the agency fund. This other supplementary information can be found on pages 48-55 of this report. Government -wide Financial Analysis As noted previously, net assets may sere over time as a useful indicator of a government's financial position. At June 30, 2008, the Commission's assets exceeded liabilities by $580,184,242, a $19,830,823 increase from June 30, 2007. Our analysis below focuses on the net assets and changes in net assets of the Commission's governmental activities. Net Assets Approximately 36%, compared to 26% in 2007, of the Commission's net assets reflect its investment in capital assets (i.e., construction in progress; land and improvements; rail operating easements; rail stations; and office fumiture, equipment, and automobiles), less any related outstanding debt used to acquire those assets, primarily related to rail and land. The Commission uses these capital assets to provide transportation and commuter rail transit services to the residents and business community of the County. The increase of $59,603,743 in net assets invested in capital assets, net of related debt, from govemmental activities resulted primarily from the acquisition of land for the Mid County Parkway project and the reduction in the related debt. The most significant portion of the Commission's net assets represents resources subject to extemal restrictions on how they may be used. Restricted net assets from governmental activities represented approximately 90% and 95% of the total net assets at June 30, 2008 and 2007, respectively. Restricted net assets from governmental activities decreased by $9,443,005, primarily as a result of the use of restricted net assets for highway and regional arterial projects and the decreased sales tax and TUMF revenues due to the slowdown in the local economy. 5 44 Unrestricted net assets represent the portion of net assets that can be used to finance day -today operations without constraints established by debt covenants, enabling legislation, or other legal requirements. Unrestricted net assets from governmental activities changed from a $118,675,049 deficit at June 30, 2007 to a $149,004,964 deficit at June 30, 2008. This deficit results primarily from the impact of recording of the Commission's long-term debt, consisting of sales tax revenue bonds and commercial paper notes, 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 these projects are transferred to Ca[trans or the local jurisdiction. Accordingly, these projects are not assets of the Commission that offset the long-term debt in the statement of net assets. The following is condensed financial data related to net assets at June 30, 2008 and June 30, Net Assets Current and other assets Capital assets not being depreciated Capital assets being depreciated, net of accumulated depreciation Total assets Long-term obligations Other liabilities Total liabilities Net assets: Invested in capital assets, net of related debt Restricted Unrestricted (deficit) Total net assets Changes in Net Assets June 30, 2008 $ 578,874,105 169,622,405 42,698,923 2007: June 30, 2007 $ 595,302,115 114,047,469 44,868,276 791,195,433 165,231,179 45,780,012 754,217,860 148,098,948 45,765,493 211,011,191 207,478,034 521,711,172 (149,004,964) 193,864,441 147,874,291 531,154,177 (118,675,049) $ 580,184,242 $ 560,353,419 The Commission's total program and general revenues were $301,197,350, while the total cost of all programs was $281,366,527. Total revenues decreased by 10%, and the total cost of all programs increased by 11%. Approximately 14% of the costs of the Commission's programs were paid by those who directly benefited from the programs or by other governments that subsidized certain programs with grants and contributions. Sales taxes ultimately financed a significant portion of the programs' net costs. Govemmental activities increased the Commission's net assets by $19,830,823, and condensed financial data related to the change in net assets is presented in the table below. Key elements of this increase are as follows: • Operating grants and contributions decreased by $18,922,129, or 40% as a result of declining TUMF fees and new home construction affected by the subprime mortgage crisis; • Capital grants and contributions increased by $9,121,988 because of project expenditure reimbursements related to the Perris Valley Line extension and North Main Corona parking structure; • Measure A sales tax revenues decreased by $12,002,175, or 8%, due to the weakened local economy, especially the housing sector; • Transportation Development Act (TDA) sales taxes decreased by $11,118,013, or 11%, due to the slowdown of the local economy affected by a slowdown in the housing market and the decrease in State Transit Assistance (STA) revenues resulting from the previous years funding increases at the state level; • Gain on sale of capital assets did not occur in fiscal 2008 since the sale of surplus rail property related to the previous year; 6 • • • 45 Year Ended Changes in Net Assets June 30, 2008 June 30, 2007 Revenues Program revenues: Charges for services $ 862,455 $ 500,486 Operating grants and contributions 28,391,787 47,313,916 Capital grants and contributions 9,742,280 620,292 General revenues: Measure A sales taxes 142,537,548 154,539,723 Transportation Development Act (TDA) sales taxes 93,042,150 104,160,163 Unrestricted investment earnings 25,055,456 23,897,399 Other miscellaneous revenue 1,565,674 1,571,716 Gain on sale of capital assets - 3,278,022 Total revenues 301,197,350 335,881,717 Expenses General govemment 5,299,048 5,592,637 Bicycle and pedestrian facilities 1,436,710 760,840 CETAP 8,017,024 5,433,499 Commuter assistance 3,464,834 3,122,306 Commuter rail 14,832,473 12,458,895 Highways 59,988,334 42,436,979 Local streets and roads 54,520,115 60,099,526 Motorist assistance 3,983,252 2,408,612 Planning and. programming 7,931,869 6,561,185 Right of way management 551,960 631,996 Regional arterials 31,131,731 30,756,287 Transit and specialized transportation 83,927,945 75,567,829 Interest expense 6,281,232 6,881,128 Total expenses 281,366,527 252,711,719 Increase in net assets 19,830,823 83,169,998 Net assets at beginning of year 560,353,419 477,183,421 Net assets at end of year $ 580,184,242 $ 560,353,419 • Bicycle and pedestrian facilities expenses increased by $675,870, or 89% due to local jurisdiction claims of previous year's allocations; • CETAP expenses increased by $2,583,525, or 48%, due to preliminary engineering activities related to the Mid County Parkway project; • Commuter rail expenses increased by $2,373,578, or 19%, as a result of increased operating costs and program management activities related to the North Main Corona commuter rail station and Perris Valley Line extension project; • Highway expenses increased by $17,551,355, or 41%, due 10 land mitigation costs and project engineering, right of way, and construction activities on various 1989 Measure A and 2009 Measure A projects throughout the County; • Local streets and roads expenses decreased by $5,579,411, or 9%, due to the decline in sales tax revenues resulting from the slowdown in the local economy; • Motorist assistance expenses increased by $1,574,640, or 65%, due to technology upgrades and ADA site accessibility improvements for the call boxes; 7 46 • Planning and, programming expenses increased by $1,370,684, or 21%, primarily from geotechnical field exploration and evaluation for the proposed Irvine -Corona Expressway project; and • Transit and specialized transportation expenses increased by $8,360,116, or 11%, due to increased allocations for public transit bus and commuter rail operations. The graph below depicts program expenses for the Commission's governmental activities for the fiscal year ended June 30, 2008: $90,000,000 $80,000,000 $70,009,000 $60,000,000 $50,000,000 $40,000,000 $30,000,000 $20,000,000 $10,000,000 F _ iNJ ,,, t t.. L d 'L \ _ .Ix ff - vi. Y ��tyy«?«`: �Vre*- .. F - :x.E-_Ydt2;..'M'i."ts-A?':42,,R 7fW J�L+'i f ` - r ntr iY f .^a y ) a ��".�,.' �u<l-+"-i` f� .F r,e��y� -- -� `i�� .[ �- '�'Yhi 1 f Y 1!.`{T f 4�a -Y(' ( atf-- }1 1 as. C -•i �l - f L r r 5 f Vv •;'� 2�n�f: x, .71- -{i � r F- L "' Sl'i x o� �iw.'.x a,l`"r.- J " 's ^.'ft� c'•v� 'h'f,7 f ' .. '^ .!r ¢ - - r' T-. .F +f. iY ttt'-�Y.--�•r-4r0I�- i � ��� ^1Nx IV x tee. �t �r1 F ,e1*11 . �! o� 1 p8 cP x.ee 5 00��9 �J0 Go ti�ea�y Ge aP6Qe Go • Of' a��Ge 044 0(t °,a\y o aiay Ica`° Vag ac oo" mad o‘c`a 4ag� ea�� „.0 C1` ���a � �a�tti .cs a� y� Sao e 4e c05 ��e The graph below presents the program and general revenues by source for the Commission's governmental activities for the fiscal year ended June 30, 2008: Operating grants and contributions 9°% Unrestricted investment earnings 8% Transportation Development Act sales taxes 31 °% Other 10% Capital grants and contributions 3% 8 Measure A sales taxes 48°% • • • 47 • • Financial Analysis of the Commission's Funds As of June 30, 2008, the Commission's governmental funds reported combined ending fund balances of $531,044,094, a decrease of $19,116,519 compared to 2007.. Less than 1 %, or $3,282,460, of this total amount constitutes unreserved fund balance which is available for spending at the Commission's discretion. The unreserved fund balance has been designated primarily for bicycle and pedestrian projects and for motorist assistance services. The remainder of the fund balance is reserved to indicate that it is not available for new spending because of the following commitments: • $2,576,658 in TDA funds that have been allocated to cities within the County for bicycle and pedestrian projects; • $87,138,143 for new CETAP corridors in Westem County; • $15,314,993 for commuter assistance activities such as the ridesharing program, the park -and -ride program, and other incentives for commuters to use alternative modes of transportation; • $83,626,259 primarily for commuter rail capital projects including the Perris Valley Line extension which is expected to be completed in 2011; • $49,679,059 related to debt service that is to be paid over the next two years; • $114,682,923 for highway projects to be completed over the remainder of the 1989 Measure A; • $16,286,716 in loans and advances receivable from cities and the Coachella Valley Association of Governments (CVAG) for funds that were loaned to them to enable the construction and improvement of roads and that are to be repaid from their future Measure A local streets and roads or regional arterial funding; • $304,759 for local streets and roads programs that are returned to the cities within the County for maintenance of their roads and local arterials; • $1,556,122 in the General fund available for planning and programming activities; • $418,792 in prepaid amounts for various expenditures; • $2,602,515 in right of way management funds that were generated from highway and rail properties that will be used for those programs; • $5,135,553 for regional arterials in the Coachella Valley and $35,942,931 for regional arterials in Westem County; • $10,370,660 for Western County specialized transpoitationprojects; and • $102,125,551 in TDA funds available to the commuter rail and bus transit operators in the County. The following table presents the changes in fund balances for the governmental funds for the fiscal years ended June 30, 2008 and 2007: General fund Fund Balances Year Ended June 30 2008 2007 % Change $ 10,125,237 $ 9,948,038 2% Special Revenue major funds: Measure A Westem County 211,427,329 193,956,852 9% Measure A Coachella Valley 17,027,905 15,483,231 10% Transportation Uniform Mitigation Fee 123,081,074 159,336,112 (23)% Local Transportation Fund 74,922,455 83,767,112 (11)% Commercial Paper Capital Projects fund 6,327,358 28,797,558 (78)% Debt Service fund 50,838,184 31,255,059 63% Nonmajor governmental funds 37,294,552 27,616,651 35% 9 48 Key elements for the changes in fund balances are as follows: • The 9% increase in the Measure A Westem County Special Revenue fund resulted from the excess of Measure A sales tax revenues over commuter rail, highway, and specialized transportation program expenditures as these programs' activities include multi -year funding commitments for specified projects that are in varying stages; • The 10% increase in the Measure A Coachella Valley Special Revenue fund was attributed to the excess of Measure A sales tax revenues over highway and regional arterial program expenditures as these programs' activities include multi -year funding commitments for specified projects that are in varying stages; • The 23% decrease in the Transportation Uniform Mitigation Fee Special Revenue fund was due to a 65°% decrease in TUMF revenues caused by the housing slowdown and a 109°% increase in total expenditures for CETAP projects and payments to local jurisdictions for regional arterial projects; • The 11% decrease in the Local Transportation Fund related to a 17% increase in transit expenditures for public bus and rail operators and the use of approximately $8.8 million in reserved fund balances; • The 78°% decrease in the Commercial Paper Capital Projects fund was attributed to the use of commercial paper proceeds for the advance funding of 2009 Measure A projects; • The 63% increase in the Debt Service fund was due to the use of the 2008 Series A-1 and A-2 sales tax revenue bond (2008 bonds) proceeds to fund debt service reserve and capitalized interest funds that are maintained by the trustee; and • The 35% increase in the nonmajor governmental funds resulted from the excess of STA revenues over expenditures to public bus and rail operators, as allocations to the operators are primarily for capital needs that may have long procurement cycles. General Fund Budgetary Highlights Differences between the original budget and the final amended budget for the General fund resulted in a $1,197,872 increase in appropriations and were related to the following changes: • $142,911 increase to administration primarily for salaries and benefits as a result of postretirement health care costs and for the implementation of an intemal audit program; • $336,080 increase to the commuter rail program for increased transit services and for repairs and security relating to the Commission's commuter rail stations; • $260,874 increase for various planning and programming services primarily related to professional services for the multi -county goods movement activities; • $263,207 increase to right of way management activities related to consultant support services; • $10,800 increase to transit and specialized transportation for adjustments to various planning services; and • $184,000 of increases to intergovemmental distributions related to the development of a county transportation model. Budget increases were budgeted from available fund balance and new revenues. During the year, revenues were below budgetary estimates by $2,095,972 primarily as a result of tower intergovernmental reimbursements; however, expenditures were less than budgetary estimates by $5,303,585, thus eliminating the need to draw upon existing fund balance. General fund budgetary variances between the final amended budget and actual amounts are as follows: 10 • • 49 • • • Year Ended June 30, 2008 General Fund Budgetary Variances Revenues Sales taxes Intergovernmental Interest Other Total revenues Expenditures Current Administration Programs Intergovernmental distributions Capital outlay Total expenditures Other financing sources (uses) Transfers in Total other financing sources (uses) Final Amended Budget Actual % Variance $ 15,563,800 $ 15,251,482 (2)% 4,889,276 2,852,748 (42)% 329,423 466,937 42% 457,703 573,063 25% $ 21,240,202 $ 19,144,230 (10)% $ 4,600,007 $ 3,877,901 16% 18,303,561 14,276,000 22% 1,351,600 992,460 27% 306,448 111,670 64% $ 24,561,616 $ 19,258,031 22% $ 250,000 $ 291,000 16% $ 250,000 $ 291,000 16% Significant budgetary variances between the final amended budget and actual amounts are as follows: • $2,036,528 negative variance for intergovemmental revenues that are on a reimbursement basis and are received as project expenditures are incurred and billed to the respective agencies; • $722,106 positive variance for administration primarily related to professional services and other expenditures such as insurance and equipment, furniture, and office improvements; and • $4,027,561 positive variance for programs due to delays in preliminary engineering activities on the proposed Irvine -Corona Expressway project and to professional services, property maintenance, and support services for right of way management of highway and rail properties. Capital Assets and Debt Administration Capital Assets As of June 30, 2008, the Commission had $212,321,328, net of accumulated depreciation, invested in a broad range of capital assets including construction in progress; land and land improvements; rail operating easements and stations; and office improvements, fumiture, equipment, and vehicles. The total increase in the Commission's total capital assets, net for FY 2007l08 was 34%. Major capital asset additions during 2008 included land purchases for the Mid County Parkway project as well as construction in progress related to preliminary engineering costs for the State Route (SR) 91 and Interstate (I) 15 toll projects and the Perris Valley Line extension and construction of the North Main Corona rail station parking structure. The table below is a comparative summary of the Commission's capital assets, net of accumulated depreciation: 11 50 June 30, 2008 June 30, 2007 Capital Assets not being depreciated: Land and land improvements Rail operating easements Construction in progress Total capital assets not being depreciated Capital Assets being depreciated, net of accumulated depreciation: Rail stations Office improvements, furniture, equipment, and vehicles Total capital assets, net of accumulated depreciation Total capital assets $ 114,391,969 39,484,143 15,746,293 $ 169,622,405 $ 72,589,408 399,484,143 1,973,918 $ 114,047,469 $ 42,352,794 346,129 42,698,923 $ 212,321,328 $ 44,522,240 346,036 44,868,276 $ 158,915,745 More detailed information about the Commission's capital assets is presented in Note 4 to the financial statements. Debt Administration As of June 30, 2008, the Commission had bonds outstanding under two different authorizations: the original 1989 Measure A program and the 2009 Measure A program. On that date, the Commission had $160,025,000 in outstanding sales tax revenue bonds, consisting of $126,395,000 of the 2008 bonds under the 2009 Measure A program and $33,630,000 of other sales tax revenue bonds issued under the 1989 Measure A program. The total debt increased from the $65,495,000 outstanding as of June 30, 2007. During the fiscal year, the Commission issued its 2008 bonds to refinance the outstanding commercial paper notes and fund capitalized interest and a reserve fund. The 2008 bonds represented the initial issuance of long-term sales tax revenue bonds under the 2009 Measure A program. These bonds received ratings of "AA+" from Standard & Poor's (S&P), "Aa2" from Moody's Investors Service (Moody's), and "AA" from Fitch Ratings (Fitch). The ratings from S&P and Moody's were consistent with the existing ratings from each of these agencies, and the Fitch rating for the 2008 bonds represented its first rating for the Commission. The current debt limitation for the Commission under the 1989 Measure A is $525,000,000, which is significantly in higher than the Commission's outstanding 1989 Measure A debt. All of the outstanding bonds payable from the 1989 Measure A program mature in June 2009. For the 2009 Measure A program, the total outstanding debt is limited to $500,000,000. In March 2005 the Commission established a $185,000,000 commercial paper program to provide advance funding for 2009 Measure A capital projects. The commercial paper notes are rated °A1+" by S&P and "P1" by Moody's. As of June 30, 2008, the Commission had refinanced all of the then outstanding principal amount of the commercial paper notes with the issuance of the 2008 bonds. Additional information on the Commission's long-term debt can be found in Note 6 to the financial statements. Economic Factors and Other Factors During its March 2008 Commission meeting, the Commission adopted guiding principles for use in the preparation of the FY 2008/09 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 assist the Commission in implementing its strategic goals and objectives and lays the foundation for future financial planning for the annual budget process. 12 51 • • • The Commission adopted the FY 2008/09 annual budget on June 11, 2008.Over 60% of the $631,465,900 balanced budget is related to capital project expenditures, including: $64,500,0(10 for the Mid County Parkway preliminary engineering/environmental activities and right of way acquisition; $13,050,000 for the SR-79 realignment study and right of way acquisition; $50,176,600 to support various city highway and regional arterial construction projects in Westem County and the Coachella Valley; $29,158,000 for various Westem County TUMF regional arterial projects; $76,558,400 for MSHCP land acquisition in Westem County and the Coachella Valley; $24,930,000 for preliminary engineering and right of way support services related to the SR-91 and 1-15 corridor improvement projects consisting of toll and mixed flow lanes and interchange improvements; $37,200,000 for construction and right of way acquisition related to the SR-91 high occupancy vehicle lanes from Adams Street to the SR-60/SR-91/1-215 interchange; $23,480,000 for the Perris Valley Line Metrolink extension project engineering and right of way acquisition; $14,150,000 for final design, engineering, and construction of the North Main Corona station parking structure; and $50,085,300 for distributions to the local jurisdictions for local streets and roads. Budgeted expenditures related to funding of public bus and rail transit operations and capital projects in the County aggregate $108,359,000. Debt service costs of $46,673,400 represent another significant expenditure in the budget. Leading economic indicators show that the local economy has been impacted by the housing market crisis and subprime mortgage crisis, resulting in a slowdown in population and job growth. These factors were considered in preparing the Commission's 2008 fiscal year budget, including the sales tax and TUMF fee revenue projections. There are obvious variables in terms of project financing available from federal and state funds. There is continuing uncertainty related to the fiscal condition of the state of Califomia and the impact on transportation as well as the status of the federal transportation trust fund. The Commission continues to study innovative financing altematives such as public toll 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 io 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, 3ro Floor, P.O. Box 12008, Riverside, Califomia 92502-2208. 13 52 • Basic Financial Statements • • 53 Riverside County Transportation Commission Statement of Net Assets June 30,2008 Govemmental Activities Assets Cash and investments $ 448,678,406 Receivables: Accounts 60,090,038 Advances to other govemments 13,559,238 Loans 1,589,518 Interest 5,083,601 Due from other governments 3,698,904 Prepaid expenses and other assets 1,556 Y84 Restricted investments held by trustee 44,618,116 Capital assets not being depreciated 169,622 405 Capital assets, net of accumulated depreciation 42,698,923 Total assets 791,195,433 Liabilities Accounts payable 41,692,213 Interest payable 483,079 Other liabilities 3,604,720 Long-term liabilities: Due within one year 37,470,807 Due in more than one year 127,760,372 Total liabilities 211,011,191 Net assets Invested in capital assets, net of related debt 207,478,034 Restricted for: Bicycle and pedestrian facilities 2,576,658 CETAP 87,138,143 Commuter assistance 15,609,260 Commuter rail 83,630,554 Debt service 52,149,335 Highways 112,909,138 Local streets and roads 5,812,544 Planning and programming 1,557,601 Right of way management 2,602,616 Regional arterials 45 229112 Transit and specialized transportation 112,496,211 Unrestricted (deficit) (149,004,964) Total net assets $ 580,184,242 See notes to financial statements 15 54 Riverside County Transportation Commission Statement of Activities Year Ended June 30, 2008 Net(Expense)Revenue Program Revenues and Changes in Net Assets Charges for Operating Grants Capital Grants Governmental Functions/Programs Expenses Services and Contributions and Contributions Activities - Primary Government GovemmentalAcrwities: - General government $ 5299,048 $ 2,331 $ - $ $ (5,296,717) Bicycle and pedestrian *Res 1,436,710 - - (1,436,710) CETAP 8,017,024 - 7,017,385 (999,639) Commuter assistance 3,464,834 1,575,591 (1,889,243) Commuter rail 14,832,473 352,826 207,637 9,742,280 (4,529,730) Highways 59,988,334 - 4,911,765 - (55,076,569) Local streets and roads 54,520,115 - - _ ..(54,520,115) Motorist assistance 3,983,252 - 3,604;155 - (378,797) Planning and programming 7,931,869 3,467,571 (4,464298) FSght of way management 551,960 507298 - (44,662) Regional arterials 31,131,731 - 7,598,223 - (23,533,508) Transit and specialized transportation 83,927,945 9,160 - (83,918,785) Interest expense 6,281,232 - - _. (6281,232) Total govemmenal ac0vittes 281,366,527 $ 862,455 $ 28,391,787 $ 9,742,280 (242,370,005) See notes to financial statements General Revenues: Measure A sales taxes Transportation Development Act sales taxes Unrestricted investment earnings Other miscellaneous revenue Total general revenues Change in net assets 142,537,548 93,042,150 25,055,456 1,565,674 262,200,828 19,830,823 Net assets at beginning of year 560,353,419 Net assets al end of year $ 580,184,242 16 55 Lt spatuapp 7enueup of Sept! en 09'996'M 6 OL5'16Z'9E $ 49V965'09 $ 905996al. S 6E0'LPS'9L S LLO'4Z/'OEL $ L6144E.11 $ Z99121'LEZ $ 16911C'El 4 seauspq purl pue 'some!' lent 460'4601ES 199'461'LE 991.'9E9'09 95E'LZE'9 59P'ZZOL 4L0'190'611 506'LZD'21, 6Z£'LZ9'1.1.Z LEMtbl se0uele9 punt lelol (49Z'910'41 (5ES'ESZ'Ll 1.929f2'1 pu1au61s0pu(1 951:969'9 960169'S spurt enuana+ 'epoch ul payodw'pneu&sap 944'£OeI. 945'EOL'I. - sueppeped pue sap6sp+01 popu61sa0 :panASEVUll L LY9e9'Z11. 10E'E891.t 601'169'02 099'0LE'01. upleyodsuer' peeryenad9 pue usue+1 984'810'19 l96'296'se 999'9E1.'9 - slepeye leuol6eb 91,9'209'1 - - 919'109'1 luawa6euew Leen to )061N L61114 tS9'Cl 59912 - 109'91 tense slunowe pedal,' 11l199't - - 111159'l 6uwurencud pue 6wuueld 69C40E 1lL'99 COLTS 19E'SSl - spear pue pesos peol 94L'99Z'91. - 9Z1'691.'1 eass'EL - E9E1899% - apenlaam ea0uerpe pue sueon 416'19011 166'EE1 - 949'809'lt 956'04170t skem46lp 690'13L9'60 - 650131.9'69 - - eowas 1040 69e9Z9'E9 - - 966'ZSZ'18 P919LE'Z eauarunna £66'91E'91 ete'Ilf'SL - eaueppse repwwo0 E9t'8ECL8 E9 VSZVZ9 - dy130 999'9LS1 999'929'Z - - supine' uensapad pue apLOls ml peruesay ssoupeq pund 994116'1.9 91E'9001 099'129'e $99'en't EW'E4£'L 15E'991'4 $92'948'91 SS4'961'9 n0(1011E101 909'0001 4164 1S1'40'1 - OEZ'Z 01 SSE'S94'f 995'62 sNNllgell+KO 9£61ZZ'S EZ619e 499'S9et 4e914ZL'l 99001 99E'E L99'9L4 - spunpaylo WanO E1216919 S 110'669 4 S 9991191 S 009'009 S Sll'9EZ'L S 9l0'E91'9 S LEE'209%1 $ 699'926'1 S epeled spumy (9 3$9910el1 LD !omens pond pue ennui 699'196'199 S 0!B'CR HE S POI 9E909 S 909'946b1 $ 690'Lent $ LLO'ne*OfI $ L6Z'PLE'12 S 199'ELZ'LEZ $ C59'lZE'EL S ryesse 1e101 91411914 Z6E'L91 4ZL'054'94 084n4 Lq Play sluaugsenw pappos8 161'914 1.96'8 S99'K 109'41 950'99E sauylpuadra period 006'969'9 906'8eve - - - s)ucowan08+eyl0 owl en0 9E6'9ZZ'S LE 949'LL l'Z - 4Z9'2Zl'Z LE4'816 spury Jane w0.4 an0 109'ESO'S 4E019Z EB{'ZL 090'1EE'I, 109'999 996104 99Z'11. 026'9E9% L9E'Ed 1sa,eW1 91.9'6991, 01.'6E11 - - E6£'OEP - suer,' 991.649'E1. 9E2'599'El - 8e311enpy eE0'O60'o9 914'£29'1 e16'816'11 196'0E51 E66'9E0'9 169'161'99 [99'91e'Z swno0oy sapeApOay 90P'e[9'944 S Z£9'9792E t 181'9911 $ 598'9E S 146110/1 S 9£E'£6Z'EZt 4 etcos 'sl s ZOS'499'96L $ 9E61E9'6 4 sununsanul pue 45e0 slessy 1e101 spun] SVUO$ atoa(ad pund sad LensA lyunus pquswweno0 KI0 ',Idea uoneyodsuesl u0se6n141 esayeeo0 wapam Jofewuop Jock) peel 120l10(1 Vaannoys yaunseel$ Jew 1e1e+91/1W03 uoneyodsuul enustay ppads le+aus0 cpunAuo(el$ 900Z'Ot aunt spun] leluawwano0-pays a0ueps uopslluwo0 uoseuodsueal Awn spanks,' • • • Riverside County Transportation Commission Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Assets June 30, 2008 Total fund balances - Governmental funds (page 17) $ 531.044,094 Amounts reported for governmental activities in the statement of net assets (page 14) are different because: .Capital asses, less related accumulated depreciation, used in governmental activities are not financial resources and therefore are not reported la the funds. 212,321,328 Other long-term asses are not available to pay for current -period expenditures and, therefore, are deferred in funds. 1,395,586 Interest payable on bonds outstanding is not due and payable in the current period and therefore is not reported in the funds- (483,079) Debt issuance cuss are not current financial resources and therefore are not reported in the governmental funds. 1,137,492 Lang -term iabifities are not due and payable in the current period and therefore are not reported in the funds. Those iabffities consist of Compensated absences - - (392,944) Con0acts payable (1,100,000) Bonds payable (160,025,000) Premium on debt issuance (3.713,235) Net adjustment (165,231,179) Net assets of governmental activities (page 15) $ 580,184242 See notes to financial slatements 18 • 57 • Spowelele 701Queuy of ewau ea8 6t 16T//9VC5 S 2S9b62'LE f p81'869'05 f 9S6'LLC9 S SS0726'YL f PLO'l10'6L1 S 9061501• 1 9ZCL50'1.12 E 552'9LI'0l S +ea( to pue le seauepq pun 519991'059 19981.912 65099515 999L6L9e Ell'LACER it 1'959691 tC2199'91 Z59959E61 9f0'906'6 +eet to euembee le saeuelee pun: 0314'911'60 1091L88 SZiESS'61 (00VOLfr'LZ) ILS901913 (BCD'ssrse) 1L9015'1 LL9'OLVL1 661'LLl sesuele0 purl ui e6ue1{3 Nk 150'695'091 91915C1 96Z9L625 000933Ott (5(000 It59(691) (0919t1'9Z) 000'l6L Isesn) selnos Bupueup+eulo vial E0[9f90V31) (559313s'6Ll) (9LL'DOS) (1•63'89'U (9besse.93) lee walsuul 0L0590/91 906'IL9 56291955 090970'011 - - 999'616 000'462 le wapuul liVPS9'f IZOIS9i - muensm IgaO uo wmwud 009560951 000'965951 000'00906 - - Muenep lep0 :lease) au9nos 6uoueup+e89 (01•039C6L1) 955955'9 &CENTEL) 9306'96V598 (LG9'9990) (995'196'50 993L91'6 L59'999E9 0096110 swnypuadsa (Jape) samarato(huaelep) estu j 696'19e6L9 B99'LL9L 051'5L/'SE 9ZY'Kts9/ 019't16'le 856695/5 91.915112 [91•65eL9 20155'61 swnupukta ploy CL3.566 9999 - - - - 999'LIL 0L9'111 Aepno p9de0 059288 091'566 sua9ngplsp pluawu+uo6+alul 92.596'6/1 0Dt'LSL'1 on Vent EBL'603211 19.5'/91, roam l9eP leK9 909101'1 909100L - - - - - aauempp 1909 091'191 091'991 vl*legal adeskgN 9391191 599 tt 0Z 4909'5 596'9095 99 1e8,81u1 000'0191e1 000'599'15 000'930'011 I¢d6upd 906681080 COY/99YLE 9p0'6919 9CL'951'05 Ot9'619'09 916'699'99 919091/5 690'69519 0001(5'91 met l:199u Sse'129E9 99L9011 006'93e9L =resit IL✓/66'l 99V8/2 ualeyudeueq panppedc pee usual 60919/69 - 52l'9161 - 695'059'19 995'906'6 OEI - e898pe19u01989 0591G9 099159 IuaweB 809188'9 - S89'99l 009'!BE$ ril'BBCw e 6yww126A 6atl pue Bul,Aemlo Nbluueld 59e1919C WESS'S - - - 911.07.VPS 92S116 8lueleee¢1ep419 fsC001'Ll //2'Y11'19 spew pue gawp level eee[8919 - 91•9Lll'8f - 069'909'1 4lL'0119L - sAemyflu co 51181VIL - SL9'619Lt eS1050'6 ors Ammo 6ii I9ouf'D 49'LLCC - steepest aenw600 013980'I3 IBZ'9O1'9 - ssro6Y1 - - d9130 Wessel - 0149914 mippq u¢pinPed pue aplalg eww60id 91908E'S 50M L6V611 009Z9L CIS t06'1[9'C uodenmwwpe viol sine; LLL'81 000'ffiL t969e6 +aw 1LL'OSC 9te91 - scram- CSSZin SO9'69 Dram, ecVzs asealaged LCl'9 595'5 1691 C69'9Z9 eaalNee l69 ovo)wd CtS E69'E9 se0lww label lurue0 891'0964 92906 L[59991 salauaq pue saeaps9 :181ens!uwpy lueun0 ewnppuade9 881'989'BBL S98$18191 0996/86 9EL'BE91 E'S699ViL S99'929ot 993113998 rWssnf1 osts91'61 senuanw Mpi Li62102 zes% - - OS 190'OC9'I C95'69 190'5L9 /e410 9909391 990•1993 • sxl+een uuleapibw appyen SOC'14'EL 6069591 0598207 899189 595'CSt'E L00'E109 996909 911'691'6 L66999 12640,4 1OV918R 0118669 919199 90L'19S S61'617091 001'LS97 1el¢ouwaeoBeev9 65095891 - 606'55•0'91 - LLI'LLS 08d eale6996e989 unppodsuul 999'869556 S stsVe9'Ot S • S• S lBESIE'es S • f ess'ess3i S I60'LSS'S01 S set"[Test S n*el tele9 eanuer¢y IeMl spuna b1,+e8 geele+d W0d eed Awn feune0 pauewweea0 99e0 IAId7 90Pruodsuul 909e911119 89801e0 I+965899 +ejrumaN (Wed IsOel 919681 9wneN w Yunuew 9690 IerAINW100 %memo&uul enueeev moody p10ue0 spund m(rw 8005'DS war P8963+096 spund lquemu • seouep6 Wnd te*69uee0 pue earrepuadeg'senueesy JDpommels 988=9 uepepedsuul Awne9 e88669 • • Riverside County Transportation Commission Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Salaams of Governmental Funds to the Statement of Activities For the Year Ended June 30, 2008 Net change in fund balances -Total governmental funds (page 19) $ (19,116,519) Amounts reported for govemrental activities in the statement of activities (page 16) are different because: Revenues in the statement of activities that do not provide current fnandal resources are not reported as revenues in the funds 1,311,151 Governmental funds report capital outlays as expenditures. However in the statement of activities, the cost of those assets is atocated over their estimated useful [lves and reported as depreciation expense. The adjushnent combines the net changes cite following amounts: Capital outlay Depredation expense Net adjustments The issuance of longterm debt (e.g., bonds) provides current financial resources to govemmental funds, while the repayment of the principal of long-term debt consumes the current financial resources of governmental funds. Neither transaction, however. has any effect on net assets. Also, governmental funds report the effect of issuance costs, premiums, discounts, and simian items when debt is fast issued, whereas these amounts are deferred and amortized in the statement of activities. The adjustment combines the net changes of the following amounts: 55,678.603 (2,273,020) 53,405,583 Principal payments for sales tax revenue bonds and commercial paper notes 141,870,000 Issuance of commercial paper notes (30,000,000) Issuance of sales tax revenue bonds (126,395.000) Premium on sates tax revenue bonds (3,854,021) Issuance costs on sales tax revenue bonds 1,107,508 Amortization of bond premium 140,786 Amortization of debt Issuance costs (134,380) Arbitrage [lability 171,147 Change it accrued interest 218,564 Highway expenditure related to contract payable 1,000,000 Net adjustrnents (15,875,396) Some expenses reported in the statement of activities do not require the use of current financial resources and therefore are not reported as expenditures in governmental funds. The adjustment combines the net changes of the following amounts: Compensated absences 106,004 Change in net assets of governmental activities (page 16) $ 19,830,823 See notes to financial statements 20 59 Riverside County Transportation Commission Statement of Fiduciary Net Assets June 30, 2008 Assets Cash and investments Interest receivable Total assets Liabilities Due to postretirement health care benefits plan Due to other governments See notes to financial statements 21 Agency Fund 60 Riverside County Transportation Commission Notes to Financial Statements June 30, 2008 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. The Commission is a special district govemed by a 30-member board of commissioners (Board) consisting of one representative from each city in the county, all five county supervisors, and a 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 ensures the replacement of the 1989 Measure A program when it expires in 2009 with a new 30 year program that will continue funding improvements until June 2039. In connection with the 2009 Measure A program, the County and cities in the Westem County area implemented a Transportation Uniform Mitigation Fee (TUMF) program to fund a regional arterial system to handle the traffic demands in the Westem 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. As a result of the commencement of the TUMF program prior to the 2009 Measure A program, a Memorandum of Understanding (MOU) between the Commission and the Westem Riverside Council of Govemments (WRCOG), administrator of the TUMF program, was executed regarding the allocation of TUMF revenues, net of a set -aside for WRCOG administration costs, until the 2009 Measure A program is effective. Under the MOU, the majority of net revenues are allocated in equal amounts to the Commission for regional arterial projects and to 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. As required by accounting principles generally accepted in the United States, 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 is responsible for approval of SAFE's budget. SAFE is presented as a special revenue fund. Separate financial statements are not issued for SAFE. There are many other governmental agencies, including the County of Riverside, providing services within the area served by the Commission. These other govemmental agencies have independently elected governing boards and 22 61 Riverside County Transportation Commission Notes to Financial Statements June 30, 2008 Note 1. Summary of Significant Accounting Policies, Continued 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 govemment-wide financial statements, including a statement of net assets and a statement of activities, and fund financial statements which provide a more detailed level of financial information. Govemment-wide statements: The statement of net assets and the statement of activities report information on all of the nonfiduciary activities of the Commission. The effect of interfund activity has been removed from these statements. These statements report governmental activities, which normally are supported by taxes and intergovemmental revenues. The Commission does not have any business -type activities, which rely to a significant extent on charges and fees for support. 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 of a particular function. Taxes and other internally dedicated resources, which are propedy not included among program revenues, are reported instead as general revenues. Fund financial statements: The fund financial statements provide information about the Commission's funds, including its fiduciary funds, though the latter are excluded from the government -wide financial statements. Separate financial statements are provided for govemmental and fiduciary funds. The emphasis of fund financial statements is on major governmental funds, each displayed in a separate column. All remaining govemmental 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 Measure A and 2009 Measure A Western County programs and activities. Measure A Coachella Valley Special Revenue Fund: This fund accounts for the revenues from sales taxes which are restricted to expenditures for 1989 Measure A and 2009 Measure A Coachella Valley programs and activities. Transportation Uniform Mitigation Fee Fund: This special revenue 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 under TDA for planning and programming, bicycle and pedestrian facilities, and transit operations including the Commission's commuter rail operations. 23 62 Riverside County Transportation Commission Notes to Financial Statements June 30, 2008 Note 1. Summary of Significant Accounting Policies, Continued Commercial Paper Capital Projects Fund: This fund records proceeds from the issuance of commercial paper notes and the use of these proceeds to advance right of way and mitigation land acquisition and project development 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 revenue bonds. Additionally, the Commission reports the foNowing fund type: Agency Fund: This fiduciary fund accounts for proceeds from a subordinate debt issue for various cities' local street and road projects and the prefunding of the postretirement health benefits actuarial accrued liability. Measurement focus and basis of accounting: The govemment-wide 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. Grants and similar items are recognized as revenue as soon as all eligibility requirements imposed by the provider have been met. Govemmental 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 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, intergovemmental revenues, interest revenue, and vehicle registration user fees. In applying the susceptible -to -accrual concept to intergovernmental revenues, there are essentially two types of revenues. In one, moneys must be expended on the specific purpose or project before any amounts will be paid to the Commission; therefore, revenues are recognized based upon expenditures incurred. In the other, moneys are virtually unrestricted and are usually revocable only for failure to comply with prescribed compliance requirements. These resources are reflected as revenues at the time of receipt or earlier if the susceptible -to -accrual criteria are met. The fiduciary fund financial statements, which consist solely of agency funds, have no measurement focus and are reported using the accrual basis of accounting. Cash and investments: The Commission maintains cash and investments in accordance with an investment policy adopted initially by the Board on September 13, 1995, and most recently amended April 9, 2008. The investment policy complies with, or is more restrictive than, applicable state statutes. Investments of bond and commercial paper proceeds as permitted by the applicable bond documents are maintained by U.S. Bank as 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 eamings allocated to the different accounts based on average monthly dollar account balances. The Commission's investment policy authorizes investments in U.S. Treasury notes and bonds, federal agency notes, repurchase agreements, corporate bonds, commercial paper, banker's acceptances, money market mutual 24 63 Riverside County Transportation Commission Notes to Financial Statements June 30, 2008 Note 1. Summary of Significant Accounting Policies, Continued funds, the Riverside County Pooled Investment Fund (RCPIF), the State of Califomia Local Agency Investment Fund (LAIF), and certificates of deposit. Other investments permitted by the Califomia Government Code (Code) are permitted but only with prior Board authorization, except for securities that could result in zero interest accrual if held to maturity that are ineligible. LAIF is regulated by Code Section 16429 and is under the management of the State Treasurer with oversight provided by the Local Agency Investment Advisory Board. 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. Local Transportation Fund moneys are legally required to be deposited in the RCPIF. The RCPIF and the LAIF are carried at fair value based on the value of each participating dollar as provided by the RCPIF and LA1F, respectively. The fair value of the Commission's position in the RCPIF and LAIF is the same as the value of the pool shares. Investments in U.S. govemment and agency 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. Accounts receivable: Accounts receivable consist primarily of Measure A and LTF sales tax revenues from the State Board of Equalization on all taxable sales within the County of Riverside, Califomia through June 30, 2008. Intel -fund 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; intemal financing balances are reported as advances to/from other funds. Restricted investments held by trustee: Restricted investments held by trustee represent unexpended bond proceeds, interest eamings thereon, and capitalized interest and reserve amounts of sales tax revenue 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; rail easements; rail stations; and office fumiture, equipment, and vehicles are reported in govemmental activities in the government - wide financial statements. Capital assets are defined by the Commission as assets with an initial, individual cost of more than $5,000 and an estimated useful life in excess of three years. Such assets are recorded at historical costs or estimated historical costs if purchased or constructed. Donated capital assets are recorded at estimated fair value at the date of donation. Highway construction and certain purchases of right of way property, for which title vests with the Califomia Department of Transportation, are included in highway program expenditures. Infrastructure consisting primarily of highway construction and right of way acquisition is 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 toll lanes are recorded as construction in progress, as the Commission anticipates obtaining franchise rights from the state to operate such toll lanes for a certain period of time. Accordingly, the Commission adopted Government Accounting Standards Board (GASB) Statement No. 51, Accounting and Financial Reporting for Intangible Assets, during the year ended June 30, 2008. 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. 25 64 Riverside County Transportation Commission Notes to Financial Statements June 30, 2008 Note 1. Summary of Significant Accounting Policies, Continued Rail stations, furniture and equipment, and vehicles of the primary govemment are depreciated using the straight-line method over the following estimated useful lives: Asset Type Useful Life Rail stations 10 to 30 years Office fumiture and equipment 3 to 5 years Vehicles 5 years Compensated absences: Vacation leave in govemmental funds that is due and payable at year-end is reported as an expenditure and a liability of the General fund. Eamed vacation leave that is not currently due is reported as a long-term liability in the government -wide financial statements. Sick leave is recorded as an expenditure in the General fund 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 govemment-vide 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.. Risk management: The Commission is exposed to various risks of loss related to 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 Southem California Regional Rail Authority (SCRRA). Settled claims have not exceeded insurance coverage in any of the past three fiscal years. Fund equity: In the fund financial statements, governmental funds report reservations of fund balance for amounts that are not available for appropriation or are legally restricted by outside parties for use for a specific purpose. Designations of fund balance represent tentative management plans and are subject to change. Net assets: In the govemment-wide financial statements, net assets represent the difference between assets and liabilities and are classified into three categories: Invested in capital assets, net of related debt consists of capital 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 assets represent the net assets that are not accessible for general use because their use is subject to restrictions enforceable by third parties. Unrestricted net assets represent those net assets that are available for general use. When both restricted and unrestricted resources are available for use, it is the Commission's policy to use restricted resources first and then unrestricted 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 26 65 Riverside County Transportation Commission Notes to Financial Statements June 30, 2008 Note 1. Summary of Significant Accounting Policies, Continued 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 management's budgetary estimates. Administrative salaries and benefits of $1,414,989 allocated to Measure A in 2008 were .99% of revenues and in compliance with the law. Note 2. Cash and Investments Cash and investments at June 30, 2008 consist of the following: Unrestricted Restricted Cash Cash in bank $ 12,181 Petty cash 1,018 RCPIF LAIF Investments with fiscal agents or custodians Investments $ — 445,177,327 3,452,025 $ 12,181 1,018 445,177,327 3,452,025 Total Investments Total $ — $ 12,181 1,018 445,177,327 3,452,025 35,855 35,855 44,618,116 44,653,971 Total cash and investments $ 13,199 $448,665,207 $448,678,406 $ 44,618,116 $ 493,296,522 As of June 30, 2008, the Commission had the following investments: Investment Maturities Fair Value First American Govemment Obligations mutual fund First American Treasury mutual fund Investment Agreement LAIF RCPIF Total investments 40 days average 40 days average June 1, 2009 212 days average 445 days average $ 19,063,640 9,800,340 15,89,991 3,452,025 445,177,327 $ 493,283,323 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 Commission has deposits with a bank balance of $250,000 with a financial institution; bank balances over $250,000 are swept daily into a money market account. Of the bank balance, $100,000 is federally insured and the balance is collateralized in accordance with the Code; however, the collateralized securities are not held in the name of the Commission. Interest rate risk: 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. 27 66 Riverside County Transportation Commission Notes to Financial Statements June 30, 2008 Note 2. Cash and Investments, Continued Credit risk: As of June 30, 2008, the Commission's investment in the RCPIF was rated Aaa/MR1 by Moodys Investors Service (Moody's) and AAAN1+ by Fitch Ratings (Fitch). The investments in First American Treasury and First American Govemment Obligations mutual funds were rated AAA by both Moody's and Standard & Poor's (S&P). The investment agreement and LAIF are not rated. 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. Concentration of credit risk: The Commission's investment policy places a limit of 10% on the amount of investment holdings with any one non-govemmental issuer. More than 5 percent of the Commission's investments are in the RCPIF. This investment is 90.2% of the Commission's investments. The investments in the Commercial Paper Capital Projects fund are unexpended commercial paper note proceeds invested in the First American Government Obligations mutual fund. The investments in the Measure A Westem County Capital Projects fund are unexpended bond proceeds invested in the First American Treasury mutual fund for project funds as required by the bond agreements. The investments in the Debt Service fund are sinking fund payments, capitalized interest fund, and reserve funds invested in First American Treasury and Govemment Obligations funds and an investment agreement for interest and principal as required by the bond agreements. Note 3. Receivables Loans: Under the Commission's financing guidelines for local jurisdictions, the Commission has entered into Advance Funding Agreements with a number of local cities. The cities have pledged their future share of 1989 Measure A local streets and roads revenues in accordance with repayment amounts specked in each city's agreement. All loans are due on or before June 30, 2009. Outstanding advances to all cities, reflected as loans receivables at June 30, 2008, are summarized below: City of Corona City of Norco City of Perris City of San Jacinto City of Temecula Total loans receivable $ 569,102 207,999 188,293 128,791 495,333 $ 1,589,518 In June 2006, the Commission approved an advance loan to the city of Hemet for $2,000,000 funded by the Measure A Western County Special Revenue fund's 1989 Measure A highway program. The city of Hemet pledged its share of FY 2007/08 Measure A local streets and roads revenues, and repayment is due on or before September 30, 2008, as amended by the Commission in February 2007. No amount was advanced to the city of Hemet as of June 30, 2008. Advance Loan Commitments: The Commission has approved advance loans, which are to be funded by commercial paper note proceeds, to the cities of Hemet, Indio, and Blythe and the Coachella Valley Association of Governments (CVAG) in the amounts of $3,000,000, $4,000,000, $1,500,000, and $43,300,000, respectively. The cities have pledged their share of 2009 Measure A local streets and roads revenues, and CVAG has 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. These loans are due on or before September 1, 2019. No advance has been made to the city of Hemet as of June 30, 2008. The outstanding advances as of June 30, 2008 were as follows 28 67 Riverside County Transportation Commission Notes to Financial Statements June 30, 2008 Note 3. Receivables, Continued City of Indio $ 4,000,000 City of Blythe 1,500,000 CVAG 8,059,238 Total advances receivable $13,559,238 Note 4. Capital Assets Capital assets activity for the year ended June 30, 2008 was as follows: Governmental activities Capital assets not being depreciated: Land and land improvements $ 72,589,408 $ 41,802,561 $ - $114,391,969 Construction in progress 1,973,918 13,772,375 - 15,746,293 Rail operating easements 39,484,143 - - 39,484,143 Total capital assets not being depreciated 114,047,469 55,574,936 - 169,622,405 Capital assets being depreciated: Rail stations 63,418,067 27,599 - 63,445,666 Office improvements 56,658 - - 56,658 Office furniture, equipment and vehicles 1,117,050 76,068 (41,330) 1,151,788 Total capital assets being depreciated 64,591,775 103,667 (41,330) 64,654,112 Less accumulated depreciation for: Rail stations (18,895,827) (2,197,045) - (21,092,872) Office improvements (12,088) - - (12,088) Office furniture, equipment and vehicles (815,584) (75,975) 41,330 (850,229) Total accumulated depreciation (19,723,499) (2,273,020) 41,330 (21,955,189) Total capital assets being depreciated, net 44,868,276 (2,169,353) - 42,698,923 Govemmental activities capital assets, net $158,915,745 $ 53,405,583 $ - $212,321,328 Depreciation expense was charged to functions/programs of the Commission's govemmental activities during the year ended June 30, 2008 as follows: Balance Additions/ Retirements/ Balance July 1, 2007 Transfers Transfers June 30, 2008 General government $ 49,018 Commuter rail 2,189,042 Commuter assistance 34,960 Total depreciation expense $ 2,273,020 29 68 Riverside County Transportation Commission Notes to Financial Statements June 30, 2008 Note 5. Interfund Transactions Due from/to Other Funds: The composition of balances related to due from other funds and due to other funds at June 30, 2008 is as follows: Receivable Fund General fund General fund General fund General fund General fund General fund Measure A Western County Special Revenue fund Measure A Western County Special Revenue fund Measure A Western County Special Revenue fund Measure A Westem County Special Revenue fund Transportation Uniform Mitigation Fee Special Revenue fund Nonmajor Governmental funds Total due from/to other funds Payable Fund Measure A Westem County Special Revenue fund Measure A Coachella Valley Special Revenue fund Transportation Uniform Mitigation Fee Special Revenue fund Local Transportation Fund Special Revenue Fund Nonmajor Govemmental funds Nonmajor Governmental funds Local Transportation Fund Special Revenue Fund Nonmajor Governmental funds Nonmajor Govemmental funds Commercial Paper Capital Projects fund Commercial Paper Capital Projects fund Nonmajor Governmental funds 30 Amount Explanation $ 578,561 Reimbursement for fringe benefits 3,366 Reimbursement for fringe benefits 104,658 Reimbursement for fringe benefits 170,733 Capital allocation for commuter rail station parking structure costs 69,103 Reimbursement for fringe benefits 2,016 Reimbursement for bond issuance costs 953,851 Capital allocation for commuter rail station parking structure costs 352,826 Capital allocation for commuter rail station parking structure costs 27,947 Reimbursement for bond issuance costs 788,000 Reimbursement for construction costs 2,177,844 Reimbursement for construction costs 31 Reimbursement for bond issuance costs $ 5,228,936 69 Riverside County Transportation Commission Notes to Financial Statements June 30, 2008 Note 5. Interfund Transactions, Continued Interfund Transfers: During 2008, interfund transfers were as follows: Transfers Out Transfers In Amount Measure A Westem County Special Revenue fund Measure A Western County Special Revenue fund Measure A Coachella Valley Special Revenue fund Transportation Uniform Mitigation Fee Special Revenue Fund Transportation Uniform Mitigation Fee Special Revenue Fund Transportation Uniform Mitigation Fee Special Revenue Fund Nonmajor Govemmental funds Nonmajor Governmental funds Nonmajor Governmental funds Debt Service fund General fund Debt Service fund Measure A Westem County Special Revenue fund Nonmajor Governmental funds Nonmajor Govemmental funds Commercial Paper Capital Projects fund Debt Service fund Nonmajor Governmental funds Total transfers Note 6. Long-term Obligations The following is a summary of the changes in long-term obligations for the year ended June 30, 2008: $ 26,104,746 291,000 7,897,894 219,566 Explanation Debt service related to highways and commuter rail for Westem County Highway augmentation of property management operations Debt service related to highways and regional arterials for Coachella Valley Transfer of investment eamings 45,116 Transfer of investment earnings 36,093 Transfer of investment eamings 110,005,000 18,973,655 490,000 $164,063,070 Transfer of bond proceeds for repayment of outstanding commercial paper notes Transfer of bond proceeds for debt reserve and capitalized interest funds Call box program augmentation of freeway service patrol operations Bonds payable Add: Issuance premiums Total bonds payable Commercial paper notes Contract payable Compensated absences Total long-term obligations Balance July 1, 2007 Additions $ 65,495,000 $126,395,000 3,854,021 65,495,000 130,249,021 80,005,000 30,000,000 2,100,000 498,948 275,072 $ 148,098,948 $160,524,093 31 Reductions $ (31,865,000) (140,786) (32,005,786) (110,005,000) (1,000,000) (381,076) $ (143,391,862) Balance Due Within June 30, 2008 One Year $ 160,025,000 $ 33,630,000 3,713,235 2,569,347 163,738,235 36,199,347 1,100,000 1,100,000 392,944 171,460 $ 165,231,179 $ 37,470,807 70 Riverside County Transportation Commission Notes to Financial Statements June 30, 2008 Note 6. Long-term Obligations, Continued Bonds payable: Under the provisions of the 1989 Measure A, as amended by Ordinance No. 92-1 (Measure AA), the Commission has the authority to issue bonds subject to a bond debt limitation of $525,000,000._Under the provisions of the 2009 Measure A, the Commission has the authority to issue bonds subject to a bond debt limitation of $500,000,000. The following is a summary of bonds issued and secured by Measure A revenues: 2008 Sales Tax Revenue Bonds (Limited Tax Bonds), Series A-1 and A-2: In June 2008, the Commission issued serial bonds in the principal amount of $94,395,000 and $32,000,000, respectively, for an aggregate amount of $126,395,000 to refinance all of the outstanding principal amount of the commercial paper notes and a portion of accrued interest on the notes, fund capitalized interest through December 1, 2009, and fund a reserve fund. Net proceeds amounted to $130,249,021, inclusive of premium of $3,854,021. The serial bonds mature in annual installments of $1,005,000 to $7,205,000 on various dates through June 1, 2029 with initial interest rates ranging from 4.00% to 5.00%; however, the bonds are subject to redemption on December 1, 2009.1f the bonds are not redeemed, they are subject to a mandatory tender at a new interest rate. If the bonds are not remarketed at the tender date, the interest rate will be 11 % until the bonds are successfully remarketed. The required reserve amount is $10,124,024. 2000 Sales Tax Revenue Bonds (Limited Tax Bonds), Series A: In July 2000, the Commission issued serial bonds in the principal amount of $35,825,000 to fund various major highway projects. Net proceeds amounted to $35,934,149, inclusive of premium of $109,148 and net of accrued interest. The bonds mature in annual installments of $2,975,000 to $4,785,000 on various dates through June 1, 2009 with interest rates ranging from 4.25% to 5.25%. The Commission posted a surety bond in lieu of cash reserve in the amount of $3,582,500. 1997 Sales Tax Revenue Bonds (Limited Tax Bonds), Series A: In August 1997, the Commission issued serial bonds in the principal amount of $47,910,000 to retire outstanding commercial paper notes of $41,200,000 and to fund various major highway projects. Net proceeds amounted to $48,055,659, inclusive of premium of $263,196 and net of accrued interest. The bonds mature in annual installments of $2,490,000 to $5,115,000 on various dates through June 1, 2009 with interest rates ranging from 3.7% to 5.25%. The Commission posted a surety bond in lieu of cash reserve in the amount of $4,791,000. Portions of the bonds are subject to early redemption, at the option of the Commission beginning June 1, 2007. 1997 Junior Sales Tax Revenue Bonds (Limited Tax Bonds), Series B: In August 1997, the Commission issued subordinated serial bonds in the principal amount of $13,245,000 to retire outstanding commercial paper notes of $2,800,000 and to fund various local streets and roads projects. Net proceeds amounted to $13,223,717, inclusive of premium of $11,016 and net of accrued interest. The bonds mature in annual installments of $745,000 to $1,405,000 on various dates through June 1, 2009 with interest rates ranging from 3.75% to 5.0%. The Commission posted a surety bond in lieu of cash reserve in the amount of $1,324,500. Portions of the bonds are subject to early redemption, at the option of the Commission beginning June 1, 2007. 1996 Sates Tax Revenue Bonds (Limited Tax Bonds), Series A: In January 1996, the Commission issued serial bonds in the principal amount of $61,765,000 to refund a portion of the 1991 Sales Tax Revenue Bonds (Limited Tax Bonds), Series A. Net proceeds amounted 10 $66,252,576, inclusive of premium of $4,487,576 and net of accrued interest. The bonds mature in annual installments of $45,000 to $10,030,000 on various dates through June 1, 2009 with interest rates ranging from 3.75% to 6.0%. The Commission posted a surety bond of $3,251,625 in lieu of a portion of the required reserve amount of $4,485,000. 32 Amount Outstanding. $ 126,395,000 4,785,000 5,115,000 1,405,000 71 Riverside County Transportation Commission Notes to Financial Statements June 30, 2008 Note 6. Long-term Obligations, Continued The proceeds from the refunding bonds and a forward Float contract provided by a major bank were placed in an irrevocable escrow fund consisting of United States Treasury obligations. At June 30, 2008, there were no refunded sales tax bonds outstanding. 1993 Sales Tax Revenue Bonds {Limited Tax Bonds), Series A: In January 1993, the Commission issued serial bonds in the principal amount of $136,610,000 to finance certain highway and rail projects and Coachella Valley regional arterial projects. Net proceeds after original discount amounted to $135,448,305. The bonds mature in annual installments and require sinking fund payments of $5,910,000 to $12,295,000 on various dates through June 1, 2009 with interest rates ranging from 4.625% to 6.0%. The required reserve amount is $14,150,796. $ 10,030,000 12,295,000 $ 160,025,000 Annual debt service requirements to maturity for bonds payable are as follows: Years Ending June 30 Principal Interest Total 2009 $ 33,630,000 $ 7,693,114 $ 41,323,114 2010 3,970,000 6,153,430 10,123,430 2011 4,010,000 6,109,008 10,119,008 2012 4,215,000 5,908,908 10,123,908 2013 4,425,000 5,698,580 10,123,580 2014-2018 25,660,000 24,952,745 50,612,745 2019-2023 32,730,000 17,879,170 50,609,170 2024-2028 41,745,000 8,857,000 50,602,000 2029 9,640,000 481,036 10,121,036 Total debt service $ 160,025,000 $ 83,732,991 $ 243,757,991 Commercial paper notes payable: The Commission has authorized the issuance of tax-exempt commercial paper notes in an amount not to exceed $100,000,000 for the primary purpose of financing costs of certain highway and commuter rail projects under the 1989 Measure A. As of June 30, 2008, the Commission had no outstanding commercial paper notes related to the 1989 Measure A. 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 issued commercial paper notes of $30,000,000, $50,000,000 and $30,005,000 in 2008, 2007 and 2005, respectively, for total outstanding commercial paper notes of $110,005,000, which was refinanced in June 2008 by the 2008 Sales Tax Revenue Bonds. Accordingly, at June 30, 2008, there were no commercial paper notes outstanding. 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%. As a requirement for the issuance of the commercial paper notes, the Commission entered into a $190,000,000 irrevocable direct draw letter of credit and reimbursement agreement with Bank of America, N.A. as credit and liquidity support for the commercial paper notes. Funds may be drawn under the letter of credit to pay debt service on the commercial paper notes in the event that the commercial paper dealers are unable to market commercial paper notes at the maturity dates of the outstanding commercial paper notes. Amounts drawn on the letter of credit are not due until expiration of the letter of credit in March 2010. Accordingly, the commercial paper notes are classified as long-term debt in the Commission's financial statements. The Commission did not draw on this letter of credit 33 72 Riverside County Transportation Commission Notes to Financial Statements June 30, 2008 Note 6. Long-term Obligations, Continued authorization during the year ended June 30, 2008, nor were there any amounts outstanding under this letter of credit agreement at June 30, 2008. Contract payable: In December 2003, the Commission entered into an agreement with CVAG and the city of Rancho Mirage to reimburse CVAG $6,100,000 from 1989 Measure A Coachella Valley highway moneys for costs paid to the city of Rancho Mirage related to a completed state highway project. Under the agreement, the Commission will pay CVAG over a six -year period. As of June 30, 2008, the annual contract payments are as follows: Years Ending June 30 2009 Total $ 1,100,000 Interest Rate Swaps: As a means to achieve a greater level of interest rate stability in connection with an anticipated variable rate debt refinancing of the outstanding commercial paper notes and 2008 sales tax revenue bonds in late 2009, the Commission entered into two forward -starting interest rate swaps in August 2006 for a total notional amount of $185,000,000. The counterparty for the first swap ($100,000,000 notional amount) is Bank of America, NA (Bank of America), and the counterparty for the second swap ($85,000,000 notional amount) was Lehman Brothers Derivative Products Inc. (Lehman Brothers DP). Under the swap agreements which become effective in October 2009, the Commission will pay the counterparties a fixed rate of 3.679% for twenty years, the expected term of the variable rate debt to be issued in 2009; the counterparties will pay the Commission a floating rate equal to 67% of the one -month London Interbank Offer Rate (LIBOR). The interest rate swaps are, among other things, subject to credit, basis, and termination risk. The credit and termination risks have been mitigated with collateral posting requirements, in the form of U.S. treasury and certain federal agency securities, by the counterparties in the event of a ratings downgrade below a specified threshold. Upon issuance of the variable rate debt in 2009, basis risk is expected to be mitigated with a variable rate paid to bond holders that approximates the 67% of one -month LIBOR to be received from the counterparties. Accordingly, the interest rate swaps effectively create synthetic fixed rate debt for the Commission. The swap policy adopted by the Board requires the Commission to calculate the fair termination values of its swaps at least annually. The calculation of the fair termination value takes into consideration the prevailing interest rate environment, the specific terms and conditions of a given transaction, and any upfront payments that were received, if any. Fair valuations of termination values are realized only if the swaps were to be terminated at the valuation date, and only the Commission retains the right to optionally terminate the transactions. As of June 30, 2008, the negative fair values for the $100,000,000 swap with Bank of America and the $85,000,000 swap with Lehman Brothers DP were estimated by an independent third -party to be $2,843,636 and $2,418,108, respectively. Therefore, if the swaps were terminated on June 30, 2008, the Commission would have paid a termination payment of $2,843,636 and $2,418,108 to Bank of America and Lehman Brothers DP, respectively, for a total termination payment of $5,261,744. The termination payments that would have been paid by the Commission if the swaps were terminated on June 30, 2008 are a result of the change in interest rate levels and certain interest rate relationships. The rate used to calculate the fixed swap payment owed by the Commission to the swap providers is 3.679%. As of June 30, 2008, this fixed rate was higher than the current rate for a swap of identical terms and conditions. 34 • • 73 Riverside County Transportation Commission Notes to Financial Statements June 30, 2008 Note 6. Long-term Obligations, Continued The terms, fair values, and credit ratings of the outstanding swaps as of June 30, 2008 are as follows: Faced Variable Swap Associated Notional Effective Rate to Rate to be Termination Counterparty Debt Issue Counterparty Amount Date be Paid Received Fair Value Date Credit Rating Commercial Bank of 67% of paper America $100,000,000 10/01/2009 3.679% LIBOR $ (2,843,636) 06/01/2029 AA+IAaa/AA Commercial PaPef Lehman 67% of Brothers DP 85,000,000 10/01/2009 3.679% LIBOR (2,418,108) 06/01/2029 AAA/Aaa/AAA $185,000,000 $ (5,261,744) In September 2008, Lehman Brothers Holdings filed for bankruptcy, which was a trigger event under the swap agreement with Lehman Brothers DP. As a result of the trigger event, the swap agreement was terminated on September 23, 2008. A termination payment of $3,452,453 was paid to Lehman Brothers DP on October 1, 2008. The Commission entered into a replacement swap with Deutsche Bank AG (Deutsche Bank) for a notional amount of $85,000,000 on September 24,2008. Under the swap agreement with Deutsche Bank, which becomes effective in October 2009, the Commission will pay Deutsche Bank as the counterparty a fixed rate of 3.206% for twenty years; the new counterparty will pay the Commission a floating rate equal to 67% of the one -month LIBOR. 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 eamings 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 eamings on all bond and commercial paper financings. A liability of $154,160 resulted from one of the calculations for the commercial paper notes and was paid in August 2008. Note 7. Net Assets and Reserved and Designated Fund Balances Net Assets: Invested in capital assets, net of related debt, as reported on the govemment-wide statement of net assets represents capital assets of $212,321,328, net of related debt of $4,843,294. The related debt includes the portion of the 1993 and 1996 sales tax revenues bonds that were used for the acquisition and construction of the commuter rail capital assets. Additionally, the govemment-wide statement of net assets reports $521,711,172 of restricted assets, of which $277,426,941 is restricted by enabling legislation. 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 Measure A 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 reserved as follows: 35 74 Riverside County Transportation Commission Notes to Financial Statements June 30, 2008 Note 7. Net Assets and Reserved and Designated Fund Balances, Continued Highways, commuter rail, and accounts and loans receivable: Funds for state highways are to be used for project costs including engineering, right of way acquisitions, and construction. Such funds are intended to supplement existing federal and state resources. Commuter rail projects anticipate the use of existing rail lines, and funds are used for costs related to planning, capital improvements, right of way purchase, and/or use rights agreements. Amounts advanced to certain cities under funding agreements are reflected in fund balance as reserved for advances to other govemments and loans receivable, respectively. Debt service: Certain bond proceeds have been used to make required sinking fund payments in the Debt Service fund as required by the bond agreements. Amounts held by the trustee equal to the maximum annual debt service are recorded in the Debt Service fund. Local streets and roads: Funds are expended by local jurisdictions for the construction, repair, and maintenance of local streets and roads. The County and local cities are required to supplement those expenditures with other previously dedicated revenue sources to maintain road improvements. Monies are disbursed to the jurisdictions which comply with the requirement to maintain the same level of funding for streets and roads as existed just prior to the passage of the 1989 Measure A and which annually submit a five-year capital improvement plan. Regional arterials: Funds for regional arterials are used to implement the planned regional arterial system, as defined by CVAG, in the Coachella Valley. Funds are matched by Traffic Uniform Mitigation Fee revenues generated in the Coachella Valley. Commuter assistance and specialized transportation: Funds for specialized transportation are used to promote and subsidize commuter assistance programs such as ridesharing and telecommuting and to guarantee reduced transit fares, expand existing transit services, and implement new transit services for seniors and persons with disabilities. Additionally, CVAG has elected to use a portion of the Coachella Valley local streets and roads funds to provide additional funding for bus replacement or other transit programs that will improve air quality. 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 Westem County and are reserved as follows: CETAP: Funds for the development of new transportation condors are used to provide congestion relief and mobility within the County and between the County and its neighboring Orange and San Bemardino 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 regional arterial system, as defined in the 2009 Measure A, in the Western County. Funds will be matched by revenues of $300 million generated from the 2009 Measure A. Transportation Development Act: Reserves for the Local Transportation Fund represent the unclaimed apportionments related to claims for transit programs, the unexpired allocations available for bicycle and pedestrian facilities, prepaid transit allocations, and earned but not received revenues. Expired allocations of $1,703,548 related to bicycle and pedestrian projects are unreserved and designated in the Local Transportation Fund. Reserves for the State Transit Assistance represent the unclaimed apportionments related to claims for transit. The TDA reserves at June 30, 2008 are as follows: 36 75 Riverside County Transportation Commission Notes to Financial Statements June 30, 2008 Note 7. Net Assets and Reserved and Designated Fund Balances, Continued Local Transportation State Transit Fund Assistance Total ' Bicycle and pedestrian facilities $ 2,576,658 $ — $ 2,576,658 Transit and specialized transportation Western County: Bus transit: City of Banning $ — $ 915,000 $ 915,000 City of Beaumont 329,665 — 329,665 City of Corona — 90 90 City of Riverside — 85,000 85,000 Riverside Transit Agency 78,040 6,283,930 6,361,970 Apportioned and unallocated 25,157,466 9,778,623 34,936,089 Commuter rail: Riverside County Transportation Commission 13,200,976 1,205,501 14,406,477 Apportioned and unallocated 16,418,417 5,614,589 22,033,006 Total Western County 55,184,564 23,882,733 79,067,297 Coachella Valley: SunLine Transit Agency 2,662,379 2,596,789 5,259,168 Apportioned and unallocated 2,831,124 4,547,274 7,378,398 Total Coachella Valley 5,493,503 7,144,063 12,637,566 Palo Verde Valley: Palo Verde Valley Transit Agency Apportioned and unallocated for transit and local streets and roads Total Palo Verde Valley 401,283 253,733 396,132 797,415 60,374 314,107 655,016 456,506 1,111,522 Unapportioned carryover, net 9,309,166 — 9,309,166 Total transit and specialized transportation $ 70,642,249 $ 31,483,302 $ 102,125,551 Commuter rail: Reserves represent TDA monies in the General fund to be used for commuter rail operations. Planning and programming: Reserves represent TDA monies in the General fund to be used for planning and programming services. Right of way management: Reserves represent highway and rail lease monies to be used for the management of Commission properties. Prepaid amounts: Reserves represent amounts related to prepaid expenditures that are not available for appropriation. 37 76 Riverside County Transportation Commission Notes to Financial Statements June 30, 2008 Note 7. Net Assets and Reserved and Designated Fund Balances, Continued Motorist assistance: The Commission has designated unexpended funds in the Service Authority for Freeway Emergencies and Freeway Service Patrol Special Revenue funds of $4,685,372 and $908,824, respectively, to assist motorists on County roads. Note 8. Commitments and Contingencies Operating lease: The Commission has entered into an operating lease agreement for office facilities. The term of the lease is for a period of ten years expiring on October 30, 2012 and may be extended for two additional five-year terms. Rental expenditures for the fiscal year ended June 30, 2008 were $350,221. The total minimum rental commitment at June 30, 2008 is due as follows: Year Ending June 30 Amount 2009 $ 364,668 2010 379,710 2011 395,373 2012 411,682 2013 142,888 Total minimum rental commitment $ 1,694,321 Forward delivery agreement: The Commission has entered into debt service fund forward delivery agreements with the trustee for the 1993 and 1996 sales tax revenue bonds and a German banking institution. The agreements require the bank to deliver and the trustee to purchase U.S. Treasury obligations for the 1993 and 1996 sales revenue bonds debt service reserve funds. Under the agreements, the bank will pay an annual fee to be deposited in the reserve funds equal to 6.00% of the amounts required to be held in these reserve funds, which required amounts aggregate $15,926,000. The purpose for these agreements is to assure the Commission that the yield on each reserve fund is not less than the related bond yield. Real property and project agreements: Measure A 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. Litigation: Certain claims involving disputed construction costs 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. Local Transportation Fund and State Transit Assistance Fund: The Riverside Transit Agency (RTA) and the SunLine Transit Agency, (collectively, the Agencies), major transit providers for the County of Riverside, obtained available lease financing for bus acquisitions through the proceeds from certificates of participation issued by the California Transit Finance Corporation (Corporation) for each agency. Local Transportation Fund and State Transit Assistance funds, to the extent of the Agencies' eligible share, along with other federal and state funds were pledged as support for the Agencies' lease payments to the Corporation. 38 77 Riverside County Transportation Commission Notes to Financial Statements June 30, 2008 Note 8. Commitments and Contingencies, Continued For the year ended June 30, 2008, there were no Local Transportation Fund or State Transit Assistance Fund revenues expended for lease payments. Project Funding Advances: In January 2006, the Commission authorized the TUMF Special Revenue fund to advance $3,114,600 to the State to replace state and federal funding for the State Route (SR) 91/Green River interchange project During the year ended June 30, 2008, $743,993 was advanced to the State from the TUMF Special Revenue fund for the SR-91 project In December 2004, the Commission authorized the TUMF Special Revenue fund to advance $13,046,000 to the State to replace state and federal funding for the SR-60 widening project from Interstate 15 to Valley Way. The final agreement with the State resulted in a reduction of the Commission's commitment to $8,881,000. During the year ended June 30, 2008, $543,368 had been advanced to the State from the TUMF Special Revenue fund for the SR-60 widening project The advances are to be repaid in the form of a commitment of future State funding on TUMF projects, and, accordingly, the aggregate advances of $1,287,361 during the year ended June 30, 2008 were recorded as highway expenditures of the TUMF Special Revenue fund. Cumulative advances as of June 30, 2008 for the SR-91/Green River interchange and SR-60 widening projects were $3,114,600 and $8,636,096, respectively. Note 9. Joint Agreements Joint Venture: 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 Bemardino Associated Govemments, 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 southem Califomia 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 $6,474,646 during 2008 for its share of Metrolink capital and operating costs. As of June 30, 2008, cumulative capital contributions were $26,599,997.Other funds for 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 700 N. Flower Street, 2601Floor, Los Angeles, Califomia 90017. On September 12, 2008, one of the Metrolink trains was involved in a collision with a freight train. Management has not determined the impact, if any, of this incident on the financial condition of the Commission. Cooperative Agreement: In May 2006 the Commission entered into a cooperative agreement, Riverside Orange Condor Authority, with OCTA and the Transportation Corridor Agencies to jointly exercise the common powers of the parties to manage geotechnical studies regarding the Riverside Orange Corridor. The Commission is the recipient and administering entity of federal and state funds as may be necessary to accomplish this work, and the three agencies will share in meeting the local agency matching requirements. As of June 30, 2008, the Commission was not required to make any contributions. 39 78 Riverside County Transportation Commission Notes to Financial Statements June 30, 2008 Note 10. Employees' Pension Plans Public Employees' Retirement System: The Commission contracts with the State of California Public Employees' Retirement System (PERS) to provide its employees retirement as well as death and retirement disability benefits, which are paid by the PERS under a cost sharing multiple -employer plan. Copies of the PERS' annual financial report may be obtained from its executive office located at 400 P Street, Sacramento, California 95814, or by visiting the PERS website at www.calpers.ca.gov. Through the June 30, 2003 valuation, the PERS plan was an agent multiple -employer retirement plan. Effective July 1, 2003, due to the Commission having less than 100 active members, the Commission's PERS plan was converted from an agent multiple -employer plan (former plan) to a cost sharing multiple -employer plan. The former plan is an aggregation of single employer plans, where separate accounts are maintained for each employer and contributions by the employer benefit only the employees of the employer. Under this plan, separate actuarial valuations are performed for each employer, and the results are attributed to and accounted for by the employer. The cost sharing multiple -employer plan is a pooling arrangement whereby risks, rewards, and benefit costs are shared and not attributed individually to any single employer. Periodic employer pension expense can be significantly different between the plan types. The change to the pooling arrangement was initially effective for the Commission's required contribution rate during the fiscal year ended June 30, 2006. At the time of joining the risk pool under the cost -sharing multiple -employer plan, a side fund (the amount that the Commission would owe PERS if it exited the plan) was created to account for the difference between the funded status of the pool and the funded status of the Commission's plan. As of the June 30, 2006 valuation (most current valuation available), the estimated amount of the side fund liability was $1,677,321. All permanent Commission employees are eligible to participate in PERS. Employees 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. Upon separation from the plan prior to retirement, members' accumulated contributions are refundable with interest credited through the date of separation. The Commission pays the employees' required contribution of 8% of regular earnings. New employees hired after November 28, 2002 are responsible for 1 % of the 8% required contribution. The Commission is required to contribute the remaining amounts necessary to fund the benefits of its members, using the actuarially determined rate, which was 22.361 % for the fiscal year ended June 30, 2008. Three-year trend information for PERS: Annual Required Percentage of Fiscal Year Contribution ARC Net Pension Ended June 30 (ARC) Contributed Obligation 2008 $ 767,046 100% $ — 2007 697.324 100% 2006 679,856 100% 40 • • 79 Riverside County Transportation Commission Notes to Financial Statements June 30, 2008 Note 11. Postretirement Health Care and Implementation of New Accounting Principle (Continued) Three-year trend information for OPEB, for years available: Fiscal Year Ended June 30 2008 OPEB Annual Required Contribution (ARC) $ 289,000 Percentage of OPEB ARC Contributed 100% Net OPEB Obligation $ — In the June 30, 2007 actuarial valuation, the entry age normal actuarial cost method was used. The actuarial assumptions included a 7.75% investment rate of return. The annual healthcare cost trend rate for non -Medicare eligible health maintenance organization (HMO) and preferred provider organization (PPO) premiums were initially 10.4% and 11.3%, respectively; Medicare eligible HMO and PPO premiums were initially 10.8% and 11.7%, respectively. The trend rate was reduced by decrements to an ultimate rate of 4.5% after ten years. A 3.25% annual rate of increase in future salaries is also assumed in the valuation; The Commission's UAAL will be amortized as a level percentage of projected covered payroll on a closed basis over a 20-year period. Note 12. 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 13, Pronouncements Issued, Not Yet Effective The GASB issued pronouncements prior to June 30, 2008 that have an effective date that may impact future financial presentations. Management has not currently determined what, if any, impact implementation of the following statements may have on the financial statements of the Commission. • GASB Statement No. 49, Accounting and Financial Reporting for Pollution Remediatian Obligations; and • GASB Statement No. 53, Accounting and Financial Reporting for Derivative Instruments. 42 81 • • • Required Supplementary Information 82 Riverside County Transportation Commission Schedule of Revenues, Expenditures and Changes in Fund Balance Budget and Actual - General Fund Year Ended June 30, 2008 Revenues Sales taxes Intergovernmental Interest Other Total revenues Expenditures Current Administration: Salaries and benefits General legal services Professional services Office lease Other *Total administration Programs: Bicycle and pedestrian facilities Commuter rail Planning and programming Right of way management Transit and specialized transportation Total programs Intergovernmental distributions Capital outlay Total expenditures Excess (deficiency) of revenues over (under) expenditures Other financing sources (uses): Transfers in Total other financing sources (uses) Net change in fund balances Fund balances at beginning of year Fund balances at end of year • See notes to required supplementary information General Original Budget Final Budget Actual Variance with Final Budget Positive (Negative) $ 16,013,800 $ 15,563,800 $ 15,251,482 $ (312,318) 4,740,276 4,889,276 2,852,748 (2,036,528) 329,423 329,423 466,937 137,514 457,703 457,703 573,063 115,360 21,541,202 21,240,202 19,144,230 (2,095,972) 1,701,070 1,796,398 1,669,577 93,268 93,268 63,693 1,107,970 1,143,455 824,385 371,163 371,163 333,305 1,183,625 1,195,723 986,941 4,457,096 4,600,007 3,877,901 126,821 29,575 319,070 37,858 208,782 722,106 9,034,100 9,370,180 9,050,458 319,722 6,855,000 7,115,874 4,395,124 2,720,750 1,162,500 1,425,707 551,960 873,747 381,000 391,800 278,458 113,342 17,432,600 18,303,561 14,276,000 4,027,561 1,167,600 1,351,600 992,460 359,140 306,448 306,448 111,670 194,778 23,363,744 24,561,616 19,258,031 5,303,585 (1,822,542) (3,321,414) (113,801) 3,207,613 250,000 250,000 291,000 41,000 250,000 250,000 29t,000 41,000 $ (1,572,542) $ (3,071,414) 44 83 177,199 $ 3,248,613 9,948,038 $ 10,125,237 d .f 5 H z R 3 • • 84 Riverside County Transportation Commission Notes to Required Supplementary Information June 30, 2008 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. 46 85 Other Supplementary Information 86 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 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 Transit Assistance: This fund is used to account for revenues from sales taxes on gasoline restricted for transit projects. Capital Projects Fund Measure A Westem County: This fund is used to account for sales tax revenue bond proceeds used for Westem County highway projects. 48 87 • Riverside County station Commission • Combining Balance Sheet - NonmajorGovemmental Funds June 30, 2008 Special Revenue Capital Projects MeasureA Total Measure A Freeway Service State Western County Nonmajor Palo Verde Service Authority for Transit Capital Governmental Valley Patrol Freeway Emergencies Assistance Total Projects Funds Assets Cash and investments $ 65,174 $ 102,629 $ 4,390,835 $ 28.062,863 $ 32,621,501 $ 2,131 $ 32,623,632 Receivables: Accounts 170,466 1,029,650 323,310 1,523,426 1,523,426 Interest 537 1,208 35,446 229,611 266,802 232 267,034 Due from other funds 17 14 31 31 Due from other governments 3,698,904 3,698,904 3,698,904 Prepaid expenditures 9,394 8,057 17,451 - 17,451 Restricted investments held by trustee - 167,392 167,392 Total assets. $ 236,177 $ 1,142,898 $ 4,757,662 $ 31,991,378 $ 38,128,115 $ 169,755 $ 38,297,870 Liabilities and fund balances Liabilities: Accounts payable $ 170,466 $ 182,007 $ 35,829 $ 155,250 $ 543,552 $ 5,869 $ 549,421 Due to other funds 41,536 27,567 352,826 421,929 29,994 451,923 Other liabilities 1,137 837 - 1,974 1,874 00 Total liabilities 170,466 224,680 64,233 508,076 967,455 35,863 1,003,318 Fund balances: Reserved for: Highways 133,892 133,892 Local streets and roads 65,711 65,711 65,711 Prepaid amounts 9,394 8,057 - 17,451 - - 17,451 Transit and specialized transportation 31,483,302 31,483,302 31,483,302 Unreserved: Designated for motorist assistance 908,824 4,685,372 5,594,196 5,594,196 Total fund balances 65,711 918,218 4,693,429 31,483,302 37,160,660 133,892 37,294,552 Total liabilities and fund balances $ 236,177 $ 1,142,898 $ 4,757,662 $ 31,991,378 $ 38,128,115 $ 169,755 $ 38,297,870 49 Riverdds Coady Tremperb8on Cam anion Cemblydng 61atembof Ryvenrws, Eapenat un. and Chubb In Fund 9deymy Nom *. 6ovemnants1 Funds barEndW Juw 20.2011 6pecid Raven Capita Propcb TOW NnaeuuA Freeway Santa Sbla Numb Nenna(er PM Wrote Savlce Autoriryfa Trams Webb Cobb GovernmenW May NM Freeway Ernsrgendes AulMmes Total Capital Probes Fundy Revenues 6Mm lam $ 975,511 $ - 3 - 3 9923625 $ 107398,836 3 - 3 10.898.936 I7brgwdw en1.1 - 1.920.428 52 - 1920480 - 1.9203480 Interest 5.334 18,470 225,347 1680339 1.435493 3.419 1638909 VeMde ugidw6on user lam - 13643E3 1,694388 - 1684388 Other NO 1292 1,532 1,632 ToW revenues 980646 1,939.138 1910279 11,109,784 159/0325 3A/9 15943915 Ear. 0 Gunn. banes and bane% - 49,7013 40367 - 90.575 90,575 General legalserbes - 1,740 1,492 3,232 - 3232 Pmksdmal sebb - 21.546 1825,9 - 39605 - 39,8115 1M50e Me 9.106 7910 - 16316 16916 Ober _ 20708 22379 49.777 - 49117 NW admnkRaion 104998 91.107 200305 - 200906 Pmgmm local aueebsa )roads 975328 - - 975928 975,528 Modal asddems - 2,190353 1.786.899 3,983252 3363,22 Trani and bibbed Baupalafan _ - _ 1=736 1=766 - 1,200,766 Total mown 975,528 2196355 1.786,899 1230.766 6,159646 - 6.169646 Masi 144,592 144,E GM of Imam - - _ - - 1,107,608 1,162508 Total deb seMce - - - 1,262100 1.252.100. Gapial outlay - 3.951 2617 505 - 5665 Total eapendiham 975,528 2308,302 1,880923 1.200766 6.335319 1.252,100 7,612619 Deem (de b...vi ol avenues over (wider) expenditures 5,317 (369.164) 29)156 9,938,998 9.575,007 (1,248681) 8.326.326 Other financing somas Meat Trawlers in - 090,000 45,116 35.093 571.209 - 571,209 Trablea out (490.000) - MOOD) (128978.655) 1129.454655) CUN !mace_ - - _ 126,395,0130 126.3953110 PremSm on debt imam- - 0854.021 3351921 Total oterfnanang sources (uses) 490,000 (444684) 36693 81209 1.270366 2351375 Mot uhage in fund balances 5,317 120,836 (415929) 9,945,091 9.650216 21,685 9,677,901 Fund Maness al beginning dyer 60694 797,382 5608.457 21,538211 27,594,444 112,207 277316651 FundMaice. 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E01'001 169'611 000'095 000'095 L6L'921 fOL'8% C00'9L9 0009L9 GOVE /69'1 000'9 000'9 059'119 056'6L01 006'99e1 006'99Z'I SZL'661.1 9Z2609'1 009'6E0 CO9'6E0 (190'1) &VC 009'6 009'1 050'119 056'6L02 006'S9L'I 006'S9tl 990'SLC 611118 009'606 009'60 Cm:1) 61100 009'6 009'1 f• E• E• S Wing S 8/9"n8 E• S- S • E' S' S f (a0e6e19) PmeV P6PnEl P6P116 (sen•ON) PoPY Pine le6Pn8 (entnanN) pnloy P6png P6png amend rcali IeuIBpO amsod leuli In16110 aplsod Isryi plug*o P6Pini P6P96 PIA le6P08 Psli gtMsauepeA I111151 mem [loom eauepe0 Fund nWeS PPG Isded lgaMuwoa Awn* muse% y unsnap •pond ePn(ud innel 0 800Z'00sunC Pima sPun3 npus3 PP0 Pus Poslwd PNasJ--IenPtl Pus POPO sea nneg pond ul sebum pug sampusd83'tenuase P sinps409 uopenuoroa uopepodelnui /qunoa epitome • neA p pus le Mmep9 pupa RBA la awuuuisq le sea mpg pond seauepS punt uI e6uepa IeN peen) Snlna! 6upueuu leylo IePl Imo teleual ulSMlsuol names! pop uo wnword nuentl map (son) seams aupueu9 RNO sesmlpuelo (sepun) Rno benueA91)o poppy) sseog3 sw ipuese poi (owes I9eP lelal nY6neel)0 po0 puoom Rnpulld '.nNNs Idea swemaa Rlol sleuole Ie1016ea dmwww6md pue duiuueld spnl p+e ape* pool anenyalry dV130 swuaoid uopwlePPMe ploy 6110411es Ieaapselad snwes [noel R+auc9 vopwlswlwpv pueuna m nppunx3 senuSAa lelol Itielul Rluswwenoaselul senueneb • • Riverside County Transportation Commission Schedule of Expenditures for local Streets and Roads by Geographic Area - All Special Revenue Funds Year Ended June 30, 2008 Westem County: City of Banning $ 692,058 City of Beaumont 686,232 City of Calimesa 174,462 City of Canyon take 222,567 City of Corona 4,790,068 City of Hemet 1,972,391 City of Lake Elsinore 1,296,326 City of Moreno Valley 4,264,317 City of Murrieta 2,516,817 City of Norco 828,871 City of Perris 1,303,501 City of Riverside 8,433,571 City of San Jacinto 749,541 City of Temecula 3,342,016 Riverside County 10,169,231 Other 2,275 41,444,244 Coachella Valley: City of Cathedral City 1,439,622 City of Coachella 535,351 City of Desert Hot Springs 387,365 City of Indian Wells 228,694 City of Indio 1,543,704 City of Palm Desert - 2,408,250 City of Palm Springs 1,707,300 City of Rancho Mirage 888,711 Riverside County 1,679,138 Coachella Valley Association of Governments 1,280,743 Other 1,465 12,100,343 Palo Verde Valley: City of Blythe 756,219 Riverside County 219,292 Other 17 975,528 Total local streets and roads expenditures $ 54,520,115 53 92 Riverside County Transportation Commission Schedule of Expenditures for Transit and Specialized Transportation by Geographic Area and Source-A8 Special Revenue Funds Year Ended June 30, 2008 Sales Taxes Measure A Local State Transportation Transit Fund Assistance Total Western County: Beaumont Unified School District $ 20,814 $ - $ $ 20,814 Blindness Support Services, Inc. 75,114 75,114 Boys and Girls Club of Southwest County 74,896 74,896 Casa for Riverside County 30,000 30,000 Care -A -Van 245,025 245,025 Care Connexxus 175,000 175,000 City of Banning - 1,058,494 - 1,058,494 City of Beaumont 3,032,739 363,000 3,395,739 City of Corona - 1,579,450 49,910 1,629,360 City of Norco 73,116 - 73,116 City of Riverside - 2,624,719 2,624,719 Friends of the Moreno Valley Senior Cilizens 47,773 47,773 Inland Aids Project 100,000 100,000 Operation Safe House 5,000 5,000 Partnership to Preserve Independent Living for Seniors and Persons with Disabilities 448,598 448,598 Peppermint Ridge 14,268 14,268 Riverside County Regional Medical Center 274,665 274,665 Riverside County Transportation Commission 10,320,133 352,826 10,672,959 Riverside Transit Agency 38,408,391 231,852 38,640,243 Volunteer Center of Greater Riverside 192,353 192,353 Whiteside Manor, Inc. 22,082 22,082 Other 155,717 330 156,047 1,954,421 57,023,926 997,918 59,976,265 Coachella Valley: SunLine Transil Agency 3,739,000 18,937,075 202,848 22,878,923 3,739,000 18,937,075 202,848 22,878,923 Palo Verde Valley: Palo Verde Valley Transit Agency 794,299 794,299 794,299 794,299 Total transit and specialized transportation expenditures $ 5,693,421 $ 76,755,300 $ 1,200,766 $ 83,649,487 54 93 • ISverside County Transportation Commission Schedule of Changes in Assets and Liabilities • Agency Fund Year Ended June 30, 2003 Balance Balance July 1,2007 Additions Deductions June 30,2003 Assets Cash and investments S 1,500,000 $ $ 1,500,000 E Interest receivable 1,994 - 1,994 Total assets S 1,501,994 $ S 1,501,994 S Liatiftiess Due to poshelirement health pre benefits plan i 1,500,000 i - $ 1,500,000 $ Due to other governments 1,994 1,994 Total iabilnies S 1,501,994 $ - S 1,501,994 $ 55 94 Riverside County Transportation Commission Statistical Section Overview This part of the Riverside County Transportation Commission's comprehensive annual 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 Assets By Component Changes in Net Assets Fund Balances of Govemmental Funds Changes in. Fund Balances of Govemmental 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 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: Ratios of Outstanding Debt by Type Computation of Legal Debt Margin Pledged Revenue Coverage 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 govemment provides and the activities it performs. These schedules include: Full-time Equivalent Employees by Function/Program Operating Indicators Capital Asset Statistics by Program 56 95 Riverside County Transportation Comrisafon Net Assets by Component Last Seven Fiscal Years (Accrual Basis) - Fiscal Year 2808 2007 2806 2005 20U 2003 Govemi ental acOuNem - Invested incapital assets, net of related debt $ 207,478.034 ' $ 147.874,291 $ 137.129.082 $ 133225.528 3 $ 104.718,712 a $ 126,247,454 ' $ 130,051,343 Resbicted 521,711,172 531,154.177 442129.220 323,504.823 23E719,198 s 154,013,051 ' (44401,093) Unrestricted 049,004.964) (11075,049) (102.07081) (124274292) (121.829.477) 3 (17041946) ' 5.985213 'rola! governmental ach isles net assets $ 580,18042 $ 560,353,419 d 477,183.421 $ 334.455.859 $ 215.606.433 $ 106.718.559 $ 915.15463 GASB 34 was implemented July 1, 2001. Prior years'iKonreSpi is not Sarre: finance Department ' Beginning net assets in 2003 were restated as ar sMdtofcorrectons tocap0al assets and revenue recognition, restating in a netdemease of $20,492,947. Addiondly, certain components of beginning net assets were reclamTed to conform bthe presenb8on in the 20036na vial statements Prior year amounts in tbs preandanon bare net been reviled to mama n se changes ' The Local Trnspoda8on Fund, previously reported as a 54siay funA was reclassied as especial revenue hind in the 2004financial statements, rename lean increase to beginning net asses of$34.295.645. Addliare0y, certain components of beginning net asses were reclassified b conformb the presentafmn in the 2004 financial statements. Pia yeas ousts in Ibis indentabn have not been revised to reflect these changes. 3 The beginning balance of invested inQOM asses, nett( related debt was restated duet a correction in the accan9ng For certain rat caplet asses in 8s 2005 financial statements, resulting hi an increase of $19,283,259. Pea year amount br pets presentalion have not been revised to reflect these changes. ' Inveaed in capes! assets, net of related dehtin ckcreased in 2008 prbw0y as a result a right of way purchases related to the hid County Parkway project 5900.000.000 5700A00.000 5500.000.000 5500000,01:10 $400,004000 2300,000,000 Ma m on° i100.00D,000 a- s(300.a0a.000) E900.0110.00n f(300,0W,0001 Net Assets by Component '�;Y r'•o is �'3t''r �, K ie I c• 4 $.1 enr. 7_ 2w/t o taresvyiea ONerknckw n wesleenwys.k easels. net errelated debt 57 96 • • Riverside canny Tamped:Ann Camdesten Changes In Ng Nub Last&wen Rad Years (Aecanal Nub) Fad Yaw Ended Jim 30 2006 2007 2006 2005 2004 2003 2002 Expenses Governmental aelNiaS General govenmsm4 $ 6299.018 f 5E92637 5 4.818292 S 015E07 S 3,909,912 5 4,307,544 f 5,407,808 0xydeawl pedednan project 1,436,710 760E10 048.959 1E21E37 927.138 ' - - CETAP 8.017.024 5.433,499 6549.33 4,147158 606,882 ' . CoxrWeraaakbllee 3.4641334 6122E33 2889E51 2$99,448 2,95e,732 2314033 2d]88,746 Cmndnd 14,8324T3 12E58.695 11.358220 8207,878 8.702033 5.6E9.883 11.772,031 152h114a 59E86334 12.43E979 36226,705 35342.793 35.456.333 29,812083 27E50E47 Iced streets and roads 54E20E25 60.099.526 60,389E76 58334169 46,208,988 462/4464 36511.323 Mistrial assistance 3.963252 2,408,612 2280E46 2191E61 1E74380 1E43.017 2552409 Planning and pm9raama9 7631,869 65611E6 5.976617 4, 328,038 A,287,6% 2974014 5,118377 fOyMa(wry managementmanagement551,960 631,996 622198 580,224721 Yel'K3 15/,582 10.6159 Ragired aeries 31,131,731 36759287 12191.803 17,621,505 12996E22 ' 8428.021 11729.312 TarW and* Walked barepala6on 63.922915 75.567E29 62.527.276 56926814 53E11,921 ' 9E13,504 6E80284 Interest^Pease 6281,232 6881,128 7.832.733 8.319926 11,736,129 10.351.790 - s Told gawnnseW adties expemm 281,366.527 252,711,719 216,506.789 19861,110 134.522,574 116E152915 115E55E20 Ptuguen Revenues - GbvanmeNalacfm5es Charges for Rn'ru Cammdaaesibrra _ - 573E64 818.532 1E66810 Carnmuler rai 352826 4E3 382' 2,564 146E49 394E24 3,794,116 • FgM el a'aimanagamen1 507,298 497,8E6 445,313 547.075 335335 216311 1197411711 _ r_.g • 2928.573 ' Planing and pregraaniv _ 3E07E20 Met2331 . 236J 28273 24.972 55255 0.2293 4a8 7,293 Opmatr9 grants ad aolrhu7sm 29.391.787 47,313,916 90,389,018 72.22,430 61E12882 a 10E09E60 4116,803 - Capialgrads and naabu0nns 9742.280 620,252 997,362 872665 1.163,922 21,190E27 - Total govammeNaladNikepraYamrevenues 38,999522 18,131,691 91,858,E 73.654.706 93,767E7/ 33,241,152 16.6E4975 ' Na Ravenna* (Expensu) GovemeaMal adades R12370,005) (201272025) (124.648,391) t21,809,109) (12015097) 32.811193) (99,104,945) General Revenues Gpremmanbl allies Measure A sales Imes - 142537.518 151630123 157236.314 139921217 126564E90 105,782,595 95,797287 Traspadabnpvelopmer1Ael sales lases 93E4150 109160,,163 96922244 77E18565 69,133002 ' 7,489638 9876656 Velnide regirmbn Nsa - - - 1.208.655 Unrestricted irresbuent emends 29055,156 23E97,399 11E39.575 5E46325 3.115232 4.932.021 5,942.400 Other miscellaneous avemn 1,565.674 1.571.716 13396024 2,366,380 536002 2282,582 43538250 Gain ao rade of eanial=els 3.278.072 5E74.796 123,054 _ Total pyromanbl ae0dies general(avenues 266200,828 287,447,023 267,375.953 224,375.571 193,349.726 120.185,836 116796328 Mangey in Nal Assets Governmental /Welles G45634 was indemanled Asa 1.2001. Prior years' bbrmaion'e not aalebte. Scam. Finance OPadmem S 19E30E23 f 83,169,9913 S 142,727,562 S 99,568167 f 72594229 S 37,674,E43 f 15,698,.783 Tha Leoal Traspuda0on FuM,p AR* repoded as a fiduciary turd, was redanired as a spacial mvevenap in the 2304 financial statement; rmWbg In an increase in sales lax revenues as see as bicycle and pedestrian lathes and bmA and specialized bapralaton exendtums Prior year amount b the pr®ernlaSan have nal been revised to relent these thaws. ' The Transpu1albn Udmm MNgadon Fee (rearm was implemented in Real year 200/,=Wild in a new revenue source totePenddues mteed b the CETAP and regenal Medals programs. Interest expanse d 512242557 in2092was classified w8hin each respedbe pmgran. Federal and sate reimbursements were c aedad=charg s b services is fiscal yea 2002 but new classified as operating or capital grants and cunt -Cullom msubsepari years 58 97 $300,000,000 $250,000 000 $200,000 000 $150,000,000 $100,000 000 $50,000 000 $400,000,000 $350,000,000 $300,000,000 $250,000.000 $200,000,000 $150,000,000 $100,000,000 $50.000,000 Riverside County Transportation Commission Changes in Net Assets (Continued) Last Seven Fiscal Years (Accrual Basis) Expenses by Function -siN%f 1.5 ., f s .. b rx ` �a M1� MU x�wC _ 2008 2007 2006 2005 2004 2003 2002 Revenues by Source 7: 2008 2007 2006 % rma 2005 2004 2003 2002 59 • ■ Interest expense ❑ Transit and specialized transportation. ❑ Regional arterials El Right of way management ■ Planning and programming ❑Motorist assistance ['Local streets and roads Highways ■ Commuter rail °Commuter assistance - OCEfAP ■Bicycle and pedestrian facilibes- ■ Gain on sale of capital assets D Other miscellaneous revenue- ® Unrestricted investment eamings 0 Vehicle registration fees II Transportation Development Act sales taxes O Measure A sales taxes O Capital grants and contributions ■ Operating grants and contributions O Charges for services • 98 • • Riverside County Transportation Commission Fund Balances of Governmental Funds Last Ten Fiscal Years (Modified Accrual Basis) Racal Year 2008 2007 2006 2005 2004 2003 2002 2001 2000 1999 General fund: Reserved $ 8,886,986 $ 7,070,115 $ 7,215,579 $ 6,304.837 $ 5,821,023 $ 5,001,493 5 5,594,227 $ 4,814,296 5 1,935,975 5 1,607,838 Unreserved 3,238,251 2,877.923 2,014,480 Z215.643 1,531,151 756,299 865.890 777,104 2,183,869 2,326.629 Total general fund $ 10,125,237 5 9,948,038 5 9,230,059 5 8,520,480 $ 7,352,174 $ 5,757,792 5 6,480,117 $ 5,591,400 $ 4.119.644 5 3,934,367 Ail other governmental funds: Resented $ 520,874.648 $ 533,275,158 $ 438,453,362 $ 323,219,025 $ 233,973,154 5 149,911,558 5 15Z810,730 $ 145.180,481 5 100,032,179 5 91,125,767 Unreserved, reported in: Special revenue funds 7,297.744 6,936,417 5,745,792 4,895,792 4,049,038 3,225,168 5.375,669 7,473,997 8,410,769 7.988,305 Capital projects fund (7,253,535) - _ Total all other governmental funds $ 520,918,857 $ 540,212,575 $ 444,199,154 $ 328,114,817 5 238,022,192 ' $ 153,136,726 $ 158,188,399 $ 152,654,478 5 108,442,948 $ 99,114,072 Source, Finance Department The Local Transportation Fund. previously reported as a fiduciary fund, was reclassified as a special revenue fund in Oe 2004 financial statements, resulting In an Increase to beginning fund balance of $34,295,645. 1999 2002 2005 2008 Fund Balances of Governmental Funds J $- $45 $90 $135 $180 $225 $270 $315 $360 $405 $450 $495 $540 5585 Millions 60 O General fund: Reserved ■ General fund: Unreserved OAR other governmental funds: Unreserved, reported in: Special revenue funds O All other govemmemal funds: Reserved ;!| !f , §|| . !||E |;.! | � | | 5fl UM! || ;`a,,■■ ,',‘a. §■ §§|!!«!! !|, ■! § !!||22� § ��\R*-^ "'} [| | §§|■R,, - .■ „ ■■,..,! ; «!■§E|!!°!t RRE ]; ;|| ] � § I !| ■, I ; • • 100 L9 1e114epene elep lue0u Isew quesudu iaeA uopezpenb3lo pm%elelS :aomos 5409'0 9909'0 %OS'S %On 1609'0 %OS'S %On 1609'0 %On 16091) OM eel sales pulp l-99 aoueops0 y unsay IL£'Z16'11 S 090b►l$l S 94611L0'91. 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OZO'BE6'l lf9'LZI'l L►f'9L9'I 199'969'Z 969'4Z61 9CZ'06E'Z sluewaldwl uvel Rue 601,06w&Awls £69'9ZE ZW'L9E 489'06 BLS'Lt9 E90'9Z9 600'069 1.90'169 lSS'i99 6Z9'496 L1Z'906 ea0ue9dde pus 6,049!wnl awoH 999'000'1 1Z6'LtCI 4LZ'CCZ4 809'19E'L 199'994'L SII'699'L Z99'6LL'L O09'046'1 109'L9a ZZI'el£2 60966916u903 Z00'Z9 19L'09 196'69 S6E'L9 06Z19 699'99 119%9 921'99 9ZB'6L 969'9L samis mobil aBepOed ZE'S'►£L 6Z9'9SL 119'929 469'690 ZEZ'0E6 IL l'L96 ZSC'9Z0'l ZL6'620'l 9£4'L61'1, 29L'609'I. semis pooj 0/6'069 CO61001 In'9913 69C'LLZ'1 6L6'6Lfi'l 901,109'L ►ZZ'6094 964'4991 000'40L'Z Z99'29Z'2 saws A➢epadS 666'019'1 909749'1 1,99'918'i 9CL7907 9CL'9LZ'Z 960'691g lL6'149'Z 9Ef'9Z0'f 4L4'90C'f 6SS'ESS'E saws asipuegmew pinups SZ9'606 S £91'964 S 996'961i i 91.5'9ES S 962199 S 99C'01.9 S SLO'96L S 91.1'L99 S 6Zl'066 S 99E'090'l S semis lmeddy L661 9661 6661 000Z 1002 ZOOZ £OOZ 000Z SOOZ ,900Z (spussnoyl ull sieeA npuepeo union adki eseumsng Lq sales algesq epluesly 10 puno0 po saaunos uolsSW203 U0140061Ml tgunoo epiuenla • • Fiscal Year Riverside County Transportation Commission Direct and Overlapping Sales Tax Rates Last Ten Fiscal Years Measure A Direct RateCounty of Riverside 2008 0.50% 7.75% 2007 0.50% 7.75% 2006 0.50% 7.75% 2005 0.50% 7.75% 2004 0.50% 7.75% 2003 0.50% 7.75% 2002 0.50°% 7.75% 2001 0.50% 7.75% 2000 0.50% 7.75% 1999 0.50% 7.75% Source: Commission Finance Department and Califomia State Board of Equalization. ' The Measure A sales tax rate may be changed only with the approval of 213 of the voters. 63 102 i City of Riverside City of Carona City of Temecula City of Palm Desert City of Moreno Valley City of Munieta City of Hemel City of Cathedral City City of Palm Springs City of Indio City of La pinta City of Lake Elsinore City of Perris City of Norco City of Rancho Mirage City of Coachella City of Banning City of Beaumont City of Blythe City of San Jacinto City of Indian Wells City of Desert Hot Springs City of Calimesa City of Canyon Lake Incorporated Unincorporated Countywide California Rfvercide County Transportation Commission Principal Taxable Sales Generation by City, Current Year and Eleven Years Ago 2006 1996 Percentage of Taxable Sales On Percentage of Taxable Sales (in thousands) Rank Total thousands) Rank Total S 5,034,072 2 16,9% $ 2,259,966 2 20.3% 3,576,700 3 12.0% 1,073,966 3 9.6% 2,764.675 4 9.1% 752,754 4 6.8% 1,593,699 5 5.3% 746,463 5 6.7% 1,307,961 6 4.4% 592,695 6 5.3% 1,120,712 7 3.B% 229,545 13 2.1% 1,053,235 8 3.5% 416,908 B 3.7% 898,801 9 3.0% 407,849 9 3.7% 1376,319 10 2.9% 433,291 7 3.9% 837,877 11 28% 305,420 10 2.7% 754,063 12 2.5% 132,892 17 12% 682,818 13 2.3% 240,367 if 2.2% 579,848 14 1.9% 227,997 14 2.0% 557,095 15 1.9% 209,199 15 1.9% 514,119 16 1.7%- 233,346 12 2.1% 308,190 17 1.0% 83,755 19 0.9% 249,506 18 0.8% 139,372 16 1.3% 235,969 19 0.8% 63,912 20 0.6% 173,316 20 0.6% 103,017 18 0.9% 127,728 21 0.4% 60,566 21 0.5% 105,715 22 0.4% 57,075 22 0.5% 95,513 23 0.3% 47,935 23 0.4% 50,575 24 0.2% 19,901 24 0.2% 12,496 25 0.0% 6,341 25 0.1% 23,451,002 78.7% 8,844,532 79.4% 8,365,235 1 21.3% 2,294,329 1 20.6% 29,816,237 100.0% $ 11,138,861 102.0% $ 559,652,437 Source: California Slate Board of Equalization for the calendar year indicated. Taxable Sales by City S6,000,000 $5.000,000 $4,000.000 $3,000,000 $2,000,000 $1.000,000 L d� d 'e 01. 4-06 0U�0\ayo\i cP 0°a4d°\0o 4``a'orNis 6``‘ d ti \ CT 64 $ 321,076,250 " Rl' ff. �' p 49 g yo n\ e o \y d° o` ca o\� �d \off 4 0 4� CAN o\p V� G`d -t-2a06 -W-1996 103 Riverside County Transporlation Commission Measure A Sales Tax Revenues by Program and Geographic Area Year Ended June 30, 2008 Special Revenue Funds General Western Coachella Palo Fund County Valley Verde Total Administration S 3,400,000 S . § - S S 3.400.000 Commuter assistance - 2,590,081 - 2.590.081 Highways 40,172,935 5,183,520 45,356,805 Commuter rail 16,808,797 - 1E608.797 Local streets and roads 41.441,295 12,095,579 975,511 54.512.385 Regional arterials 13,823,519 13,823,519 Scociar.zed transpolahon 2,590,081 3,455,880 6,045,961 5 3,400,000 S 103,603,239 S 34,558,7913 S 975,511 S 142,537548 Source: Finance Department S60.000,000 S50.000.000 S40.000.000 $30.000.000 $20.000.000 SMA00.000 S- Sales Tax Revenues by Program and Geograybk Area - :It bg4i4if,AZ'w?-.10.K4,-'..'. 'r-T:7:ii- ,,,,, -t-t. -»!tl:- :' -44 t't'--:ttri-:-.--1---, ---•.- 6. ----.,-,-_,:, , administraian Commuter - assistance Harmer Crammer rat Local seen and Reglonai armies Speoralaed reads Irensporiaeon IN Palo Verde • Coachella Valley ❑ Western County ICI General Furtd 65 • • 104 • • ....,:-..i..;,•:•-•?ii ° '•;.i,,,77-k '.:4'...,- -, ', '..7.1 :: -..:•_.....:.. A ..,, iii _. • ..1...-....,LL..: ,... ;•:-,,,:iil ..;..,..,.'.ii,t-.-i-:LtLf; P.,,..1 •.-1,---', L i.jL L'.i.-L-L-;;Zr'f. ..-:::••••Lft- . ' 1 :,-.r, ) ,:. :-. L. ,.....1,...::-LA . , ;L:-,....,.;:....:.;-...;,v'.,...,..'L.: ..- rj.... -':--.).-le, Li!,,,..... 4';'.1.-...::;.4,..!",.....i L , .-..1'...;06.4‘A-,•-;.L."..--•.. i, .--- ' .,- it .- L' -"; ' '''.L. '' -4 V..: 'L. . 4? -.L.». :.F,, ' .-.."-..-',4":•:Lf't-L*iLL, mi i..3..".1.?..1-5.-L.Lro'-;...L.& .',,,,L:-".g.L.-L,L,-; ;LLL-'.•.: gf vota ••••••••9 • 90,11 AM, q slIsstlqds lasP le lunaLaV■ P.W.One Iluq114+0, RI% 0 Ly 1002 A0.00AarL4 ul "NA 641 pquohw CR a Aq astakise SPIA 113010 aN so0S0P0 Levapespisvca pap 0.40easzto au la cup Aftusa.caze :uoIsssauxrp aurads mem Imam= 1-e; saps ago yed se /sumo apRNnp1N vox, eui Aq penarkle eon% Blfuql Wsp s.,,,s!“.4"3 041 SOO %CYO %V 9 %I 9 %0 6l %VS/ 000 000 COS S 000000 KS f 00096819P s Cal 9611 69I t 000568 ela s 000 5091L£ 000 WOOL COO WOW 000900 09 000 96e9t1 000.000.039 S 000.000.009 S 0001000109 t C00'000005 t 0091090'005 t 050'000'009 iusiaLuedea awstad Lavnos my typo legal olio=0.10 % uS9J.0 N09129.1 iF011 MP al aneand:le laap plunoury PaZuNlaa atuLl ONP lEgal ,10015 LaN aaust0p.,0 V ses,,w %I il %a /9 %t 9/ %579 %DLLS %9 00 %0 it %CZ/ liC VI %If, lalal la* Iseal al lasP la % a!0-lau lqaP R001 MIN BEZ sane ig or 1.155.2 CV 06 leg CIS ttri.L1 DDOLSCS 1St 000 Stati 000 969 56 000.513,'99 DOC CC9 EC imii titt 01 etzretiOt ritt AL WNW sootaases s oar000'sss s 000loays s mounts s °alums s carom= s 000tooss s °mums s canarszs s ocesowszs s wow., 00a IOW Mal pre saueuro Aq papuseue se . vet .aN sputum It 01/122SVI 09.991 S einem s ayssr se s ozz siouc s tee Los t went= t orta sotto I coo 9GC sty I ato sos Est I Dm Oft let Wel OWL tOOL HOC Not 90oz LOW eau men Insid INL '41'a Vi 79a01"81/* WileladVal* "1MM.* AP.'90 OPIWOAPI • • Riverside County Transportation Commission Pledged Revenue Coverage' Last Ten Fiscal Years Sales Tax Revenue Bonds Net Measure A Sales Tax Fiscal Year Receipts= Measure A Sales Total Debt Tax Receipt Senior Lien Total Senior Lien Debt Senior Lien Subordinate Subordinate Llen Service Coverage Growth Rate Senior Lien Principal Interest Service Coverage Ratio Lien Principal Interest Total Debt Service Ratio 2008 $ 146,083,683 -701% $ 30,525,000 $ 3,477,732 $ 34,002,732 430 $ 1,340,000 3 130,3138 $ 35,473,120 4.12 2007 157,092,807 1.22% 28,920,000 5,085,357 34,005,357 4.62 1,280,000 189,588 35,474,945 4.43 2006 155,206,029 15.38% 27,420,000 6,592,634 34,012,634 4.56 1,220,000 250,587 35,483,220 4.37 2005 134,516,986 14.35% 26,030,000 7,983,294 34,013,294 3.95 1,170,000 302,237 35,485,530 3.79 2004 117,832,722 14.41% 25,170,000 8,834,981 34,004,981 3.46 1,120,000 352,237 35,477,217 3.32 2003 102,817,407 8.92% 24,048,490 9,978,063 34,078,553 3.02 1,075,000 397,925 35,549,478 2.89 2002 94,400,890 5,52% 23,038,939 11,036,545 34,075,484 2.77 1,030,000 440,412 35,545,895 2.66 0 2001 89,464,634 9.71% 21,488,844 12,050,355 33,539,199 2.67 990,000 480,012 35,009,210 2.56 v 2000 81,543,732 15.83% 17,574,107 11,479,986 29,054,093 2.81 955,000 518,212 30,527,304 2.67 1999 70,396,828 10,87% 16,714,705 12,342,612 29,057,317 2.42 915,000 - 553,440 30,525,757 2.31 Source. Finance Department ' This schedule meets the requirements for Continuing Disclosure of historical Measure A sales tax receipts and bond coverage ratios. ' Sales tax revenue bonds are backed by the sales tax receipts, nel of Board of Equalization fees, during the fiscal year. 68 Riverside County Transportation Commission Demographic and Economic Statistics for the County of Riverside Last Ten Calendar Years. Personal Income Per Capita Unemployment Calendar Year Population' (thousands)2 Personal Income Rate' 2006 1,953,330 $ 57,666,983 $ 29,522 5.1°% 2005 1,877,000 52,850,398 28,157 5A% 2004 1,776,780 49,443,185 27,827 5.8°% 2003 1,705,625 45,016,790 26,393 6.3% 2002 1,644,275 42,010,066 25,549 6.3% 2001 1,609,370 39,974,556 24,839 5.5% 2000 1,522,910 37,014,951 24,305 5.4°% 1999 1,473,307 34,088,221 23,137 5.5% 1998 1,441,237 32,089,788 22,265 6.7% 1997 1,379,956 29,298,607 21,232 7.6% Sources: ' Califomia State Department of Finance as of January 1. 2 U.S. Department of Commerce Bureau of Economic Analysis 3 Riverside County Economic Development Agency 69 108 • • • Riverside County Transportation Commission Employment Statistics by Industry for the County of Riverside Calendar Year 2006 and Six Years Prior Industry Type % of Total % of Total 20061 Employment 2000 Employment Farm 8,990 1.0% 13,928 2.1% Agricultural services, forestry, fishing and other 9,502 1.1% 20,848 3.1% Mining 1,221 0.1% 897 0.1% Construction 102,394 11.9% 62,604 9.5% Manufacturing 61,121 7.1% 57,806 8.7% Transportation and public utilities 23,863 2.8% 20,694 3.1% Wholesale trade 26,091 3.0% 21,811 3.3% Retail trade 107,634 12.5% 119,023 18.0% Finance, insurance, and real estate 76,938 8.9% 50,670 7.6% Serves 320,202 37.2% 197,896 29.9% Federal government, civilian 6,620 0.8% 6,740 1.0% Military 3,371 0.4% 3,028 0.5% State government 12,471 1.5% 11,703 1.8% Local government 99,609 11.6% 74,756 11.3% Total employment 860,027 100.0% 473,229 100.0% Source: U.S. Department of Commerce Bureau of Economic Analysis Year represents most recent data available. 70 109 • LL 922 02Z 0'SZ O'SZ 0'S2 0'SZ D'SZ COE 029 0'9E CZ 01 9'0 6'0 8'0 ll OZ 0'C Ft H'9 D1 9'1 01 01 01 Htl CO 9'0 CD CO 911 01 Pt 9'L Z2 S'Z CZ LZ El t'l 2Z CO Z't Yt Z't Ct Ft CZ eZ 02 6'0 H'0 9'0 C'D CO 11 0'1 Cl 02 l't C't DZ S'Z S'Z Ft 07 9l CC CZ CC 0'9 02 62 92 WC C'6 F9 02 e'9 YS 02 Cli CU E'El 021 S2l at Z'tl 0'St at 6661. 000Z WOE ZOOZ COOZ 000Z 800Z 900Z LOOZ 800Z OE NT 10 etl sieaA mosld 801 "set weC6mdtoolpun j Aq saa6oldw3 luoieyn63 awpilnd uoisswwo3 uolteuodsueli A9unop epislanly • tueuteedep eauete j :ewes stuetemn6e ew911n1 Isle! 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Wel ugrOlpu� 6110110$0 tamelwwo0 uosspodesey etano$ sp!stonm '901L00Z Ad Bwuul0e0 panueuoosip sem anpows owl s! etennde0 uops!wou0 No°n9 °eT9puadoa wes6ad cloy eouteslese Ietntuwoa pus osueq pezpeneds sped Pus steals lea01 swpaps leu0leset pa Ienwuc0 01e9gBlH :ue8ad y anseayy %Defad hoops Issoist panatldy nueIDad aed P011eilton two", uoeepodsuey laled Sainte$ eemaad AO patslsse salonleA sanewn pined °owes Asmaad palOw1000 ssx00119a wal spew slie0 "XOCI le0 :Wuel&s°e tapomyy swans simian tatnwu00 paonpad sapinIsp!a t— PeOnPw0 snit YewSspla sllee suoydalat 3aVHS30121999'1&Suwon! s— va0waw 911a ana ',sousts!sse wenu so0 paryr ne AueB PUBS PePleteadS :u09epodsuswesuel psepsle$05 null tg sue 0031 sup 9p1esnla :open Nendda =laved sue 1.6 eon 0031 soli sPlewnlb :Palm wenwwoo so cliompp Apep simne W ypne10 Sdpt Aepessm suone tdo I!a wwww00 • • Riverside County Transportation Commission Capital Asset Statistics by Program Last Ten Fiscal Years As of June 30 2001 2007 2006 2005 2004 2003 2002 2001 2000 1999 Commuter rail: Commuter rail stations owned and managed 5 5 5 5 5 5 4 4 4 4 Miles of commuter rail easements 104.6 104.6 104.6 104.6 104.6 104.6 104.6 104.6 104.6 104.6 Commuter Assistance: Commuter Exchange Vehicle 1 1 1 1 1 1 1 1 1 1 Source: Commission Departments 73 • • • ATTACHMENT .2 Local Transportation Fund of the County of Riverside as Administered by the Riverside County Transportation Commission Financial and Complance Report Year Ended June 30, 2008 McGladrey& Pullen Certified PtbkAccountants McGtadray & Pukn, LLP Is a member hm of RSM International, an afiliadan of separate and independent legal erdles. 113 • Contents Independent Auditor's Report on the Financial Statements and Supplementary Information 1.2 Financial Statements Balance Sheet 3 Statement of Revenues, Expenditures and Change in Fund Balance 4 Notes to Financial Statements 5-7 Supplementary Information Schedule of Allocations and Disbursements 8 Schedule of Unclaimed Apportionments (Articles 4 and 8) 9 Schedule of Unclaimed Apportionments (Article 3) 10 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 Govemarnent Auditing Standards 11-12 114 McGladrey& Pullen Certified Public Accountants Independent Auditor's Report on the Financial Statements and Supplementary Information Board of Commissioners Riverside County Transportation Commission Riverside, California We have audited the accompanying financial statements of the Local Transportation Fund of the County of Riverside, as administered by the Riverside County Transportation Commission (the Commissar), as of and for the year ended June 30, 200E1, as listed in the table of contents. These financial statements are the responsibility of the Commission's management. Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Addling Standards issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. As discussed in Note 1, the financial statements present only the Local Transportation 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, 2008, and the change in its financial position for the year then ended, in conformity with accounting principles generally accepted in the United States of America. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of the Local Transportation Fund of the County of Riverside, as administered by the Commission, as of June 30, 2008, and the change in financial position, thereof for the year then ended, in conformity with accounting principles generally accepted in the United States of America. In accordance with Government Auditing Standards, we have also issued our report dated October 30, 2008 on our consideration of the Commission's internal control over financial reporting and our tests of its compliance with certain provisions of laws, regulations, contracts, grant agreements and other matters. The purpose of that report is to describe the scope of our testing of intemal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be considered in assessing the results of our audit. The Local Transportation Fund of the County of Riverside has not presented a Management's Discussion and Analysis as required by Governmental Accounting Standards Board (GASB) Statement No. 34 that the GASB has determined is necessary to supplement, although not required to be a part of, the financial statements. McGladrey 6 Pulen, LLP is a memter fun of RSM Wemational, an affiliafon of separate and independent legal entities. 1 115 Our audit was conducted for the purpose of forming an opinion on the financial statements of the Local Transportation Fund of the Commission taken as a whole. The schedules listed in the table of contents as supplementary information are presented for purposes of additional analysis and are not a required part of the financial statements of the Local Transportation Fund. Such information has been subjected to the auditing procedures applied in the audit of the financial statements and, in our opinion, is fairy stated, in all material respects, in relation to the financial statements taken as a whole. //� L" L4/d" Riverside, California October 30, 2008 2 • • 116 • • Local Transportation Fund of the County of Riverside as Administered by the Riverside County Transportation Commission Balance Sheet June 30, 2008 Assets Cash and investments with County Treasurer $ 64,011,914 Accounts receivable 11,978318 lnlerest receivable 556,807 Total assets $ 76,547,4139 Liabilities and Fund Balance Liabilities Accounts payable Due to other Commission funds Total liabilities 500;000 1;124,584 1,624,584 Fund balance Reserved: Unapportioned carryover, net 9,309,166 Rail and bus transit and local streets and roads apportionments 61,333,0E13 Bicycle and pedestrian projects 2,576,658 Unreserved and designated for bicycles and pedestrians 1,703,54E1 Total fund balance 74,922,455 Total liabilities and fund balance $ 76,547,039 See Notes to Financial Statements. 3 117 Local Transportation Fund of the County of Riverside as Administered by the Riverside County Transportation Commission Statement of Revenues, Expendittaes.and Change in Fund Balance Year Ended June 30, 2008 Revenues: Sales taxes Interest Total revenues Expenditures: Disbursements to claimants Excess of expenditures over revenues Fund balance at beginning of year Fund balance at end of year $ 74,922,455 69,313,391 3,453,662 72,466,953 81,311,610 WA4,657} 83,767,11.2 See Notes 10 Financial Statements. 4 118 Local Transportation fund of the County of Riverside as Administered by the Riverside County Transportation Commission Notes to Rnancial.Statements Note 1. Nature of Operations and Significant Accounting Policies The Riverside County Transportation Commission (Commission), in its capacity as the transportation planning agency for the County of Riverside, Calfornia (County), is responsible for administering funds provided through the Local Transportation Fund (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 one-fourth of one percent of the seven and one quarter percent statewide sales tax collected in the County by the State Board of Equalization: The accounting policies 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 acoompanying 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 10 the transactions of the Local Transportation Fund of the Commission. They do not purport to, and do not, present fairly the finandal position of the Commission as of June 30, 2008 and the changes in its financial position, where applicable, for the year then ended in conformity with accounting principles generally accepted in the United States. Basis of accounting: The modified accrual basis of accounting is followed in the Fund. Under the modified accrual basis of accounting, expendltures 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. 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 which designates funds for a specific claimant for a specific purpose. Payment is authorized by disbursement instructions issued by the Commission. 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 monies per various Public Utilities Code Sections. All disbursements are to be used for transportation purposes. Accounts Receivable: Accounts receivable consists primarily of LTF sales tax revenues from the State Board of Equalization on all taxable sales within the County of Riverside, California through June 30, 2008. Accounts Payable: Accounts payable consists primarily of claims approved by the Commission, but not paid by the Commission to the appropriate transit operators by June 30, 2008. 5 119 Local Transportation Fund of the County of Riverside as Administered by the Riverside County Transportation Commission Notes to Financial Statements Note 2. Cash and Investments with County Treasurer The funds in the County Treasury are pooled with those of other entities in the County and invested in accordance vdth the County's Investment policy. These pooled funds are carried at fair value. Fair value is based on quoted market prices and/or direct bids, when needed, from government dealers on some variable or floating rate items. Moneys in the Fund are legally required to be deposited in the County Treasury pool. An Investment Oversight Committee has been established by the County, which acts as a regulator of the pool As of June 30, 2008, the Commission had $64,011,914 invested in the Riverside County Treasury, with an average maturity of 445 days. This investment was rated Aaa/MR1 by Moody's Investors Service and AAAN1+ by filch Ratings. Note 3. Fund Balance Reserves for the Fund represent the unclaimed apportionments related to claims for transit programs, the unexpired allocations available for bicycle and pedestrian projects, prepaid transit allocations, eamed but not received revenues for transportation programs, and unapportioned carryover. Expired allocations related to bicycle and pedestrian projects are unreserved and designated. 6 120 Local Transportadon Find of the County of Riverside as Administered by the Riverside County Transportation Commission Notes to Financial Statements Note3. Fund Balance, Continued At June 30, 2008, amounts held in trust are allocated as folbws: Rail and Bus Transit and Local Streets and Roads Apportionments: Western County: Commuter rail: Allocated and unclaimed $ 13,200,976 Apportioned and unallocated 16,418,417 Bus transit: City of Beaumont 329,665 Riverside Transit Agency (RTA) 78,040 Apportioned and unallocated 25,157,466 Total rail and bus transit-Westem County 55,184,564 Coachella Valley apportioned and unallocated Allocated and unclaimed 2,662,379 Apportioned and unallocated 2,831,124 Total bus transit-Coachela Valley 5,493,503 Palo Verde Valley: Allocated and unclaimed Transit 401,283 Apportioned and unallocated for transit and local streets and roads 253,733 Total bus transit and local streets and toads —Palo Verde Valley 655,016 Total for rail and bus transit and local streets and roads apportionments $ 61,333.083 Bicycle and pedestrian projects: Reserved for allocated amounts Unreserved and designated for unallocated amounts Total for bicycle and pedestrian projects $ 2,576,658 1,703,548 $ 4,280 206 Reserved for unapportioned carryover, net $ 9,309,166 Note 4. Commitments The Riverside Transit Agency (RTA) and the SunUne Transit Agency (collectively, the Agencies), major transit providers for the County, obtained available lease financing for bus acquisitions through the proceeds from certificates of participation issued by the California Transit Finance Corporation (Corporation) for each agency. Local transportation funds, to the extent of the Agencies' eligible share, along with other federal and state funds were pledged as support for the Agencies' lease payments to the Corporation. For the year ended June 30, 2008, Local Transportation Furl revenue was not expended for lease payments. 7 121 Supplementary Information • 122 £Z6 9 14190ZAl Of. HE-L9 IZL6066 $ 009ell Z9SBit.E': 'S S S OOf'99L'9/ S ll8'L99'18 S 01L9C91 S 94Z"ZLL'17 S 09t'2s0'4 SLOYE691 9£116612 910.1$6'91 912'666'ZZ Aouesy 8sueil euons • 00YaL 004'S'Lt 0001E1 00Y1t1 OV79 • ler9017'8e 481'901e9f - Lse'ssies£ 16£'901,1£ - Awoke lleml eplem0:1 saws's' 000'009 000'0001.1 - - 000'009 000'000' 11 - elooKed (109wedeS 0$019 £60'EZI £EfSOSZ 9ZY'9ZS'ZL 00Z'SE6'Z EsVss6't e£1'0Z9'6 49iell'6 uolssuamo d1£1£1 86664 BOWS - - 66110.t 919'9E8 A34.190V0s0el1A01RAeProAeRd Ler000'1 91.1.197 9901191,1 - - 9ll'L94 590191 10e04ede0 Pr:2i - 00011 00011 00011 00011 1eAo4Wd3/1011 d epparq I to Alunoo 0007el - 000'3E4 - 000'ZE1 epaewel le Al'J 0O9'191 000'961 00910e 000'91,1 00910E olmoel ues 10 Ao 001t0Z 1491001 419'1L1'E 61L'4Z9$ 61L'119'Z S6L'OLZ 969199 0PlepMdt0AK) •..... 000` i.l W9'mi 000'03 000'011 elued1040 091'n tfen 00L'99 L£6'Z6 00L'ss 90009 mled 1040 000'09 • 000'09 000'09 PeeeO WRd 10A10 404'01 109.99.E 90.rele 10V991 901'Elf AeIRAouemWl0Ai0 0/9101 sso's94 sn'lsZ 9so'ssl 929'LSZ eol+!el3olelloAO 009119 - 009'6£ 009'8£ 05,e1104110 00016 009'89 009191 009'69 OOS'19/ tousH104110 619'nn 4 61419Z MU 90wdS10Hyas0010At) 009'901 094'SL5'L calif 094.819.E 091e0L9'1 009'90t mono loApo 00016 - 00014 000W 000tFe00 10 410 SOME 690$8Z 6801K A✓J NPe41e010 A10 MTV KL'ZEO'C 6EZ tre 6£L7e09 esi'19L'f - 00996 luoweeeS m AP 01I'm 9. 464990'I. S SOSZOs'I S S - S S - S 4649901 S 969190'1 S • S 01041 S euryue910An :seLnpuedx3 lunoluy siuouresingsla suopeoolly sluemasmgsa suog9aogy sluawasmgs!Q suo!teoogy sluewesingsla suopeoolly sluewasAngsia suopeoolly Pew!gpun sleWi en1l9/l91u!wRy pue 6u!wwe16o1d `u!uueld E MIN 9 oPIPy Y alo! JV E oloON LZ9 9S 9002 'OE aunt pepu3 Jew. stueulavngga pue suope0olOf 10 einpeyoS uo!ss!u wop uope11odsueAl lliunoo app.ienpi aLR Rq panispewpy se visional Jo ftllnoo ayl;o pun3 uopellodsueLl leoo-! • • • 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, 2008 Total Fiscal Year 2007/2008 prior Fiscal Year Unclaimed Amounts Unclaimed Unclaimed Amount Amount Unclaimed Interest AppOftlonment Apportionment Claimed Apportionment Apportionment Claimed Returned Apportionment Allocation Juna30,2008 Western County: Rail $ 10,691,278 $ 9,572,419 $ 1,116,859 $ 28,205,883 $ 747,714 $ $ 27,458,169 $ 1,042,365 $ 2%619,393 Bus 37,905,413 43,628,538 (5,723,095) 32,745,396 3,075,255 • 29,670,14i 1,618,125 25,565;171 Coachella Valley 13,386,294 14,075,349 (689,055) 10,864,542 4,861,726 6,002,816 179,742 5,493,503 Palo Verde Valley: Transit 979,280 794,299 184,981 190,825 190,825 25,477 404,283 Local streets and roads . Unallocated - 237,624 237,624 16,109 253,733 Total transportation 62,962,295 68,070,605 (5,108,310) 72,244,270 8,684,695 63,559,575 2,881,818 61,333,083 AuditorlController 12,000 12,000 Commission administration 750,000 750,000 • Commission planning 2,235,162 2,235,200 (38) (38) SCAG planning 122,400 122,400 • Total administration and planning 3,119,562 3,119,600 (38) - (38) Total apportionments $ 66,061,657 $ 71,190205 $ (5,108,348) $ 72,244,270 $ 8,684,695 $ $ 63,559,575 $ 2,881,818 $ 61.333.045 • • 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,• 2008 Unclaimed Apportionment July 1, 2007 Apportionment Disbursements Bicycle and pedestrian projects $ 4,017,458 $ 1,427,714 Unclaimed Interest Apportionment Allocations June 30, 2008 $ 1,436,709 $ 27129 $ 4,280,206 10 125 McGladrey& Pullen Cabled Public Independent AudrRoes Report un Internal Control Over Financial Reporting and on Compliance and Other IVlatters 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 the financial statements of Local Transportation Fund of the County of Riverside, as administered by the Riverside County Transportation Commission (the Commission), as of and for the year ended June 30, 2008, and have issued our report thereon dated October 30, 2008. We conducted our audit in accordance with 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. Internal Control over Financial Reporting in planning and performing our audit, we considered the Commission's internal control over financial reporting as a basis for designing our aucfding procedures 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 over financial reporting. Accordingly, we do not express an opinion on the effectiveness of the Commission's internal control over financial reputing. A control deficiency 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 misstatements on a timely basis. A significant deficiency is a control deficiency, or combination of control deficiencies, that adversely affects the entity's ability to initiate, authorize, record, process or report financial data reliably, in accordance with generally accepted accounting principles such that there is more than a remote likelihood that a misstatement of the entity's financial statements that is more than inconsequential win not be prevented or detected by the entity's internal control. A material weakness is a significant deficiency, or combination of significant deficiencies, that results in more than a remote likelihood that a material misstatement of the financial statements will not be prevented or detected by the entity's internal control. Our consideration of internal control over financial reporting was for the limited purpose described in the first paragraph of this section and would not necessarily identify all deficiencies in internal control that might be significant deficiencies or material weaknesses. We did not identity any deficiencies in internal control over financial reporting that we consider to be material weaknesses, as defined above. Compliance and Other Matters As part of obtaining reasonable assurance about whether the Commission's financial statements are free of 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 determination of financial statement amounts. This included those provisions of laws and regulations identified in the Transportation Development Act of 1971, as amended, and corresponding regulations of the California Govemment Code. 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. McGlamey 8 Pullen, LLP's a member ram of RSM Inlernalional, an affiliation of separate and independent legal entities. 11 126 This report is intended solely for the information and use of management of the Commission, the Board of Commissioners, and the State of Caiffornia's Department of Transportation and State Controier's Office and is not intended to be, and should not be, used by anyone other than those specified parties. //etL„ GAP Riverside, California October 30.2008 12 • • 127 • • • State Transit Assistance fund of the County of Riverside as Administered by the Riverside County Transportation Commission Financial and Compliance Report Year Ended June 30, 2003 McGladrey& Pullen Certried Pubic Accountants McGladrey 8 Pullen LLP is a member rim of RSM Intematimal, an aRliaton of separate and'ndependenl loDal eddies. ATTACHMENT 3 128 • • Contents Independent Auditor's Report on the Financial Statements and Supplementary Information 1-2 Financial Statements Balance Sheet 3 Statement of Revenues, Expenditures and Change in Fund Balance 4 Notes to Financial Statements 5-7 Supplementary Information Schedule of Allocations and Disbursements Approved During the Year a 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 9-10 129 McGladrey&Pullen Certified PublicAOCountdtltS Independent Auditor's Report on the Financial Statements and Supplementary Information Board of Commissioners Riverside County Transportation Commission Riverside, California We have audited the accompanying financial statements of the State Transit Assistance Fund of the County of Riverside, as administered by the Riverside County Transportation Commission (the Commission), as of and for the year ended June 30, 2008, as listed in the table of contents. These financial statements are the responsibility of the Commission's management. Our responsibility is to express an opinion on these financial statements based on our audit We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Staridards, issued by the Comptroller General of the United States. Those standard require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. As discussed in Note 1, the financal statements present only the State Transit Assistance Fund and do not purport to, and do not, present fairy the financial position of the Commission or the County of riverside, California, as of June 30, 2008, and the change in its financial position for the year then ended, In conformity with accounting principles generally accepted in the United States of America. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of the State Transit Assistance Fund of the County of Riverside, as administered by the Commission, as of June 30, 2008, and the change in financial posftlon thereof for the year then ended, in conformity with accounting principles generally accepted in the United States of America. In accordance with Government Auditing, Standards we have also issued our report dated October 30, 2008 on our consideration of the Commission's internal control over financial reporting and our tests of its compliance with certain provisions of laws, regulations, contracts, grant agreements and other matters. The purpose of that report is 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 internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be considered in assessing the results of our audit. The State Transit Assistance Fund of the County of Riverside has not presented a Management's Discussion and Analysis as required by Governmental Accounting Standards Board (GASB) Statement No. 34 that the GASB has determined is necessary to supplement, although not required to be a part of, the financial statements. it•Gtadrey 8 Pu6en, LLP is a memeer firth or RSrd International, an affiliation of separate end independent legal enfiUes. t 130 Our audit was conducted for the purpose of forming an opinion on the financial statements of the State Transit Assistance Fund of the Commission taken as a whole. The schedules, listed in the table of contents as supplementary information are presented for purposes of additional analysis and are not a required part of the financial statements of the State Transit Assistance Fund. Such information has been subjected to the auditing procedures applied in the audit of the financial statements and, in our opinion, is fairly stated, in all material .respects, in relation to the financial statements taken as whole. LGf' Riverside, California October 30, 2008 2 131 • • • State Transit Assistance Fund of the County of Riverside as Administered by the Riverside County Transportation Commission Balance -Sheet June 30, 2008 Assets Cash and investments $ 28,062,863 State allocation receivable 3698,904: Interest receivable 229.611 Total assets $ 31991,378^ Liabilities and Fund Balance liabilities Accounts payable Due from other Commission funds Total liabilities $ 155,250 352,826 508,076 Fund Balance Reserved for allocates available for programming 20,000,860 Reserved for unclaimed allocations 11,482,442 Total fund balance 31,483,302 Total liabilities and fund balance $ 31,991,378 See Notes to Financial Statements. 3 132 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, 200E1 Revenues: Sales taxes Interest Total revenues Expenditures: Disbursements to claimants Excess of revenues over expenditures Other financing sources (uses): Transfer in from other Commission funds Net change in fund balance Fund balance at beginning of year Fund balance at end of year 314133,302 9,923,426 1,186,339 11,109,764 1,200,766 9,908,998 36,093 9,945 091 See Notes to Financial Statements. 4 21,538,211 133 • State Transit Assistance Fund of the County of Riverside as Administered by the Riverside County Transportation Commission - Notes tofatancial Statements Note 1. Nature of Operations and Significant Accounting Policies The Riverside County Transportation Commission (Commission), in its capacity as the transportation planning agency for the County of Riverside, Califomia (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 Conhollefs Office for allocation to local agencies. The accounting policies 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 State Transit Assistance Fund (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 10 the transactions of the Fund of the Commission. They do not purport to, and do not, present fairly the financial position of the Commission as of June 30, 2008 and the changes in its financial position, where applicable, for the year titer► ended, in conformity with accounting principles generally accepted in the United Stales. Basis of accounting: 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 tie transaction can be determined, and 'available" means collectible within the current period or soon enough thereafter to be used to pay liabaities of the current period. Allocations to local agencies: State transit assistance funds are allocated to the operators within the County. Public Utifites 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: it is the Commission's policy to deposit all funds received with the County of Riverside Tax Collector -Treasurer for investment unfit the funds are required for disbursement. Interest income is earned while these funds are so deposited. Fund balance reservations: The reserve for allocations available for programming represents amounts apportioned but not allocated to claimants. The reserve for unclaimed allocations represents amounts allocated by the Commission and due to claimants but not yet paid. Disbursements to claimants: Disbursements to claimants represent funds disbursed to transit operators that have met the eligibaity requirements to receive State Transit Assistance Program funds per PUC Sections 99313 to 99314. All disbursements are to be used for transit purposes. 5 134 State Transit Assistance Fund of the County of Riverside as Administered by the Riverside County Transportation Commission Notes to Financial Statements Note 2. Cash and Investments Cash and Investments at June 30, 2008 consist of the following: Cash and investments with County Treasurer $ 28062,462 Cash in bank 401 Total cash and investments ®� 28,062,863 The funds in the County Treasury are pooled with those of other entities In the County and invested in accordance with the County's investment policy. These pooled funds are carried at fair value. Fair value is based on quoted market prices and/or direct bids, when needed, from government dealers on some variable or floating rate items. 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. Additional information regarding these investments, including risk and maturity, may be obtained from the Commission's Comprehensive Annual Financial Report. Note 3, Fund Balance At June 30, 2008, amounts reserved for unpaid allocations and for apportioned and unallocated amounts are as follows: Reserved for allocations available for programming: Western County: Commuter rail $ 5,614,589 Bus 9,778623 Coachella Valley 4,547,274 Palo Verde Valley 60,374 20,000,860 Reserved for unclaimed allocations: Westem County: Commuter rail 1,205,501 City of Banning 915,000 City of Beaumont City of Corona 90 City of Riverside 85,000 Riverside Transit Agency (RTA) 6,283,930 Coachella Valley: Sunline Transit Agency (STA) 2,596,789 Palo Verde Valley: Palo Verde Transit 396,132 11,482,442 Total fund balance $ 31,483,302 6 135 State TransitAssistance Fund of the County of Riverside as Administered by the Riverside County Transportation Commission Notes to Financial Statements Note 4. Commitments The Riverside Transit Agency and the SunLine Transit Agency (collectively, the Agencies), major transit providers for the County, obtained available lease financing, for bus acquisitions through the proceeds from certificates of participation issued by the California Transit Finance Corporation (Corporation) for each agency. Stale transit assistance funds, to the extent of the Agencies' eligible share, along with other federal and state funds were pledged as support for the Agencies' lease payments to the Corporation. For the year ended June 30, 2008, no Fund revenues were expended for lease payments by the Agencies. 7 136 Supplementary Information 137 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, 2008 California Code of Regulations Amount Amount Section No: Recipient Allocated Disbursed Reference Wester County: City of Banning $ 915,000 $ 6731 City of Beaumont 4,565 363,000 6731 City of Corona 50,000 49,910 6731 City of Riverside 85,000 6731 Riverside Transit Agency 6,515,782 231,852 6730 Commission Commuter Rail Program 352,826 6730 Total Westem County 7,570,347 997,588 SunLine Transit Agency 1,198,856 202,848 6730 Palo Verde Valley Transit Agency 396,132 6730 Other 330 $ 9,165,335 $ 1,200,766 8 138 McGladrey& Pullen Certified PubIicAccountals Independent Auditors 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 the financial statements of State Transit Assistance Fund of the County of Riverside, as administered by the Riverside County Transportation Commission (the Commission), as of and for the year ended June 30, 2008, and have issued our report thereon dated October 30, 2008. We conducted our audit in accordance with auditing standards generally aocepted in the United States of America and the standards applicable to financial audits contained in Government Standards, issued by the Comptroller General of the United States. Internal Control over Financial Reporting in planning and performing our audit, we considered the Commission's intemal control over financial reporting as a basis for designing our auditing procedures 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 over financial reporting. Accordingly, we do not express an opinion on the effectiveness of the Commission's internal control over financial reporting. A control deficiency 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 misstatements on a timely basis. A significant deficiency is a control deficiency, or combination of control deficiencies, that adversely affects the entity's ability to initiate, authorize, record, process, or report financial data reliably in accordance with generally accepted accounting principles such that there is more than a remote likelihood that a misstatement of the entity's financial statements that is more than inconsequential will not be prevented or detected by the entitys intemal control. A material weakness is a significant deficiency, or combination of significant deficiencies, that results in more than a remote likelihood that a material misstatement of the financial statements will not be prevented or detected by the entity's internal control. Our consideration of intemal control over financial reporting was far the limited purpose described in the first paragraph of this section and would not necessarily identify all deficiencies in intemal control that might be significant deficiencies or material weaknesses. We did not identify any deficiencies in intemal control over financial reporting that we consider to be material weaknesses, as defined above. Compliance and Other Matters As part of obtaining reasonable assurance about whether the Commission's financial statements are free of 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 determination of financial statement amounts. This included those provisions of laws and regulations identified in the Transportation Development Act of 1971, as amended, and corresponding regulations of the California Govemment Code. 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. McGladrey 8 Purer, LLP Is a member On of RSM Irdemaronal, an arniadan of separate and independent legal en8des. 9 139 This report Is intended solely for the intonation and use of management of the Commission, the Board of Commissioners, and the State of California's department of Transportation and State Controller's Office and is not intended to be and should not be used by anyone other than those specked parties. f"..zeg`'_/ Lam' Riverside, California October 30, 2008 10 140 • • • ATTACHMENT 4 Riverside County Transportation Commission Compliance Reports Year Ended June 30, 2008 McGladrey& Pullen Certified Pubic kcantants Wandrey & Pullen UP is a member fimn of RSM hdemational, an alYlalion of separate and independent legal entities. 141 • • • Contents Schedule of Expenditures of Federal Awards 1 Note to schedule of expenditures of federal awards 2 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 3.4 Compliance with requirements applicable to its major program and on intemal control over compliance in accordance with OMB CircularA-133 and on the schedule of expenditures of federal awards 5-6 Schedule of Findings and Questioned Costs 7-9 Summary Schedule of Prior Year Audit Findings 9 142 • • Riverside County Transportation Conenission Schedule of Expenditures of Federal Awards Year Ended June 30„2008 Catalog of Federal Domestic Pass -through Entity Assistance Identifying Number/ Federal Grantor/Pass-through GrantariCluster Program Tale Number Grant Number Expenditures U.S. Department of Transportation: Highway planning and Construction Program Pass -through State Department of Transpodation: East Junc6onI215 6 SR-60 20.205 07-31-082-00 $ 9813,035 State Regional Rideshare 20.205 08-41-042-00 172,560 Riverside b Orange Counties Major Imrestment Study 20205 07-65-085-010/07-65-084-00107-65-083-00 2,850,815 Pass -through San Bernardino Assodated- Governments: Rideshare Pn,yrarts 20.205 08-41-010-00 884,287 Regional R'idematching 20.205 08-41-010-00 38,155 Pass -through Orange County Transportation Regional Ridematching 20.205 07-41-115-00/C-6-0678/C-4-0329 73,998 Pass -through Ventura County Transportation Commission: Regional Ridematchng 20.205 M 24-0011MOU RS0506 25,145 Total Pass -through Grants 5,032,995 Direct Program, SR-74 Widening 20.205 0831-052-00 105,414 Total Highway Planning and Construction Program 5,138,409 Federal Transit Cluster. Federal Transit, Capital Investment Grants: Pass -through Riverside Transit Agency: Perris Multimodal Facility Direct Program, Perm Valley Line Total Federal Transit, Capital Investment Grants Federal Transit, Formula Grant: Urbanized Area Formula: Direct Program, North Main Corona Rail Station Parking Structure Total Federal Transit Cluster 20.500* 20 500* 20.507` M23-001 CA-90-Y152-00 376,235 1,920,881 2,297.116 CA-95-X031-00 1,873,610 4,170,726 Public Transportation Research: Pass -through State Deparbnent of Transportation: Rising Stars in Transit 20.514 MOU 06-042-M1/06-25-029 12,117 Total expenditures of federal awards $ 9,321,252 Denotes major program cluster See Note to Schedule of Expenditures of Federal Awards. 1 143 Riverside County Transportation Commission Note to Schedule of Expenditures of Federal Awards Note 1. Basis of Presentation The accompanying Schedule of Expenditures of Federal Awards (the Schedule) presents the activity of all federal award programs of the Riverside County Transportation Commission (Commission). The Schedule includes federal awards received directly from federal agencies, as well as federal awards passed through other agencies. The Commission's reporting entity is defined in Note 1 to the Commission's basic financial statements.. 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 of the Commission. The accompanying Schedule is presented on the modified -accrual basis of accounting. The information in this Schedule is presented in accordance with the requirements of OMB Circular A-133, Audits of States, Local Governments, and Non -fret Organizations. Therefore, some amounts presented in this Schedule may differ from amounts presented in, or used in the preparation of, the basic financial statements. 2 144 McGladrey& Pullen CertiredFubfic lndependerft Auditor's Report on internal Control over Financial Reporting and on Compliance and Other Matters Based on an Audit of Finandal Statements Performed in Accordance with Government Auditing Standards Board of Commissioners Riverside County Transportation Commission Riverside, California We have audited the financial statements of the governmental 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, 2008, which collectively comprise the Commission's basic financial statements, and have issued our report thereon, dated October 30, 2008. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Arntiting Standards, issued by the Comptroller General of the United States. Internal Control over Fnancial Reporting In planning and perfuming our audit, we considered the Commission's internal control over financial reporting as a basis for designing our auditing procedures for the purpose of expressing our opinion on the financial statements, but not for the propose of expressing an opinion on the effectiveness of the Commission's internal =trot over financial reporting. Accordingly, we do not express an opinion on the effectiveness of the Commission's internal control over financial reporting. A control deficiency 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 misstatements on a timely basis. A significant deficiency is a control defidency, or combination of control deficiencies, that adversely affects the entity's abifdy to initiate, authorize, record, process or report financial data reliably in accordance with generaly accepted accounting principles such that there is more than a remote likelihood that a misstatement of the entity's financial statements that is more than inconsequential will not be prevented or detected by the entity's intemal control. A material weakness is a significant deficiency, or combination of significant deficiencies, that results in more than a remote likelihood that a material misstatement of the financial statements will not be prevented or detected by the entity's internal control. Our consideration of internal control over financial reporting was for the limited purpose described in the first paragraph of this section and would not necessarily identify all deficiencies in internal control that might be significant deficiencies or material weaknesses. We did not identify any deficiencies in internal control over financial reporting that we consider to be material weaknesses, as defined above. Compliance and Other Matters As part of obtaining reasonable assurance about whether the Commission's financial statements are free of 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 determination of financial statement amounts. 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 noncompkance or other matters that are required to be reported under Government Auditing Standards. McGladey & Wren, LIP is a member rom of RSV International, en affgation of separate and independent legal entities. 3 145 This report is intended solely for the information and use of the board of commissioners, management, federal awarding agencies, and pass -through entities and is: not intended to be, and should not be, used by anyone other than those spectfied parties: Riverside, California October 30, 2008 4 • • 146 McGladrey& Pullen Certified Public Accountants Independent Auditor's Report on Compliance with Requirements Applicable to Its Major Program and on Internal Control over Compliance in Accordance with OMB Circular A-133 and on the Schedule of Expenditures of Federal Awards Board of Commissioners Riverside County Transportation Commission Riverside. California Compliance We have audited the compliance of the Riverside County Transportation Commission (Commission) with the types of compliance requirements described in the U.S. Mice of Management and Budget (OMB) Circular A-133, Camrpdance Supplement that are applicable to its major federal program for the year ended June 30, 2008. The Commission's major federal program is identified: in the summary of the auditor's results section of the accompanying Schedule of Findings and Questioned Costs, Compliance with the requirements of laws, regulations, contracts and grants applicable to its major federal program is the responsibility of the Commission's management. Our responsibility is to express an opinion on the Commission's compliance tamed on our audit_ We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits oontained in Government Auditing Standards issued by the Comptroller General of the United States; and OMB CircularA-133, Audits of States Local Governments and Non - Pm& Organizations. Those standards and OMB Circular A-133 require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types of compliance requirements referred to above that could have a direct and material effect on the major federal program occurred. An audit includes examining, on a test basis, evidence about the Commission's compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion. Our audit does not provide a legal determination on the Commission's compliance with those requirements. In our opinion, the Commission complied, in an material respects, with the requirements referred to above that are applicable to its major federal program for the year ended June 30, 2008. Internal Control over Compliance The management of the Commission is responsible for establishing and maintaining effective internal control over compliance with requirements of laws, regulations, contracts and grants applicable to federal programs. In planning and performing our audit, we considered the Commission's intemal control over compliance with requirements that could have a direct and material effect on a major federal program in order to determine our auditing procedures for the purpose of expressing our opinion on compliance, but not for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, we do not express an opinion on the effectiveness of the Commission's intemal control over compliance. McGladmy & Pullen, LLP is a muter firm of RSM International, an Algal of separate and independent legal entities. 5 147 A control defic eruyin an entity's internal control over compliance exists when the design or operation of a control does not allow management or employees, in normal course of performing their assigned functions, to prevent or detect noncompliance with a type of compliance requirement of a federal program on a timely basis. A slant deficiencyis a control deficiency, or combination of control deficiencies, that adversely affects the entity's ability to administer a federal program such that there is more than a remote likelthood that noncompliance with a type of compliance requirement of a federal program that is more than inconsequential will not be prevented or defected by the entity's internal control. A material weakness is a significant deficiency, or combination of significant deficiencies, that results in more than a remote likelihood that material noncompliance with a type of compliance requirement of a federal program will not be prevented or detected by any entity's internal control. Our consideration of kmtemal control over compliance was for the limited purpose described in first paragraph of this section and would not necessarily identify all deficiencies in internal control that might besignifccant deficiencies or material weaknesses. We did not identify any deficiencies in intemal control over compliance that we consider to be material weaknesses, as defined above. Schedule of Expenditures of Federal Awards We have audited the financial statements of the governmental activities, each ;major fund and the aggregate remaining fund irdormation of the Commission as of and for the year ended June 30, 2008, which collectively comprise the Commission's basic financial statements, and have issued our report thereon, dated October 30, 2008. Our audit was performed for the purpose of forming an opinion on the basic financial statements taken as a whole. The accompanying schedule of expenditures of federal awards is presented for purposes of additional analysis as required by OMB Circular A-133 and is not a required part of the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and, in ouropinion, is fairy stated, in all material respects, in relation to the basic financial statements taken as a whole. This report a intended solely for the information and use of the board of commissioners, management, federal awarding agencies and pass -through entities and is not intended to be, and should not be, used by anyone other than those specified parties. Riverside, California October 30, 2008 6 • • 148 Riverside County Transportation Commission Schedule of Findings and Questioned Costs Year Ended June30, 2008 L Summary of Independent Audlter"s Results Financial Statements Type of auditor's report issued: Unqualified Internal control over financial reporting: • Material weaknesses) identified? • Significant deficiency(ies) identified that are not considered to be material weaknesses? Noncompliance material to financial statements noted? Federal Awards Internal control over major program: • Material weakness(es) identified? • Significant deficiency(ies) identified that are not considered to be material weaknesses? No X None Reported Yes X No Yes X No Yes X None Reported Type of auditor's report issued on compliance for major programs: Unqualified • Any audit findings disclosed that are required to be reported in accordance with Section 510(a) of OMB Circular A-133? Yes X No Identification of major programs: CFDA Number Name of Federal Program or Cluster 20.500120,507 Federal Transit Cluster DoNar threshold used to distinguish between type A and type B programs: $ 300,000 Auditee qualified as low -risk auditee? X Yes No 7 149 Riverside County Transportation Commission Schedule of Findings and Questioned Costs, Continued Year Ended June 30, 2008 II. Financial Statement Findings A. Significant. Deficiencies None reported. B. Compliance Findings None reported. III. Findings and Questioned Costs for Federal Awards A. Significant Deficiencies None reported. B. Compliance Findings None reported. 8 150 Riverside County Transportation Commission Summary Schedule of Prior Year Audit Findings Year Ended June 30, 2008 There were no audit findings reported for the year ended June 30, 2007. 9 151 ATTACIIMENT 5 McGladrey&Pullen Certified PubkAccountants Independent Auditor's Report Board of Commissioners Riverside County Transportation Commission Riverside, California We have audited, in accordance with auditing standards generally accepted in the United Slates 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 govemmental activities, each major fund and the aggregate remaining fund information of the Riverside County Transportation Commission (the Commission) as of and for the year ended June 30, 2008, which collectively comprise the Commission's basic financial statements, and have issued our report thereon, dated October 30, 2008. 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 Section 6.2(g) or Section 6.2(1) contained in the Reimbursement Agreement dated March 1, 2005, with Bank of America, N.A., a national banking association organized under the laws of the United States of America, relating to the Commercial Paper Notes (Limited Tax Bonds) Series A and Series B, insofar as they relate to accounting matters. However, our audit was not directed primarily toward obtaining knowledge of such noncompliance. This report is intended solely for the information and use of the board of commissioners and management of the Commission and Bank of America, NA., and is not intended to be, and should not be, used by anyone other than these specified parties. /alGpef Ly f ��leAt,c„ GGP Riverside, California October 30, 2008 McGladrey & Pullen. LLP is a member firm or RSM International, an affiliates) d separate and independent legel entities. 1 152 ATTACHMENT 6 Riverside County Transportation Commission Report to the Audit Ad Hoc Committee November 17, 2008 McGladrey& Pullen Certified Public Accountants McGladrey 8 Pelee, LLP is a member firm of RSM International, an affiliation of separate and independent legal elates. 153 • • McGladrey & Pullen Certified:Pudic hccaathmts November 17, 2008 To the Audit Ad Hoc Committee of the Riverside County Transportation Commission We are pleased to present this report related to our audit of the basic financial statements of the i tiverSide County Transportation Commission (the Commission) for the year ended June 30, 2008. This report summarizes certain mailers required by professional standards to be communicated to you in your oversight responsibility for the Commission's financial reporting process. Also included is a summary of recently issued accounting standards that may affect future financial reporting by the Commission. This report is intended solely for the information and use of the Audit Ad Hoc Committee, the Board of Commissioners and management, and is not intended to be, and should not be, used by anyone other than specified parties. It will be our pleasure to respond to any questions you have regarding this report. We appreciate the opportunity to continue to be of service to the Commission. 461rt 47 /,011,602,,„ L � McGadrey & Rion. tiP is a member rum of RSM International. an aff ialion of separate and independent legal entltlas. 154 Contents Required Communications Summary of Accounting Estimates Recently Issued Accounting Standards 1-3 4-5 B Exhibit —Certain Writlen Communications Between Management and Our Firm Representation Letter from Management 155 Required Communications Statement on Auditing Standards No.114 requites the auditor to communicate certain matters to keep those charged with governance adequately informed about matters related to the financial statement audit that are, in our professional judgment; significant and relevant to the responsibilities of those charged with governance in overseeing the financial reporting process. The following summarizes these communications. Area Comments Auditor's Responsibility Under Professional Standards Our responsibility under auditing standards generally axapted in the United States of America; the Government Auditing Standards Issued by the Comptroller General of the United States, the provisions of the Single Audit Act, OMB Circular A-133 and OMB's Compliance Supplement has been described to you in our arrangement letter dated June 2, 2008, our letter to you dated October 6, 2008 and in our meeting with you on October 27, 2008. Accounting Practices Adoption of, or Change in, Accounting Policies Management has the ultimate responsibility for the appropriateness of the accounting policies used by the Commission. In the current year, the Commission adopted the following Govemmental Accounting Standards Board {GASB) Statements: • GASB Statement No. 45, Accounting and Financial Reporting by Employers for Postemployment Benefits Other Than Pensions. This Statement, issued in June 2004, establishes standards for the measurement, recognition and display of other postemployment benefit expenses and related fiabilifies or assets, note disdosures and, if applicable, required supplementary information in the financial reports. The requirements of this Statement were effective for the Commission beginning with its fiscal year ended June 30, 2008. • GASB Statement No. 48, Sales and Pledges of Receivables and Future Revenues and Inca -Entity Transfers of Assets and Future Revenues This Statement, issued in September 2006, establishes accounting and financial reporting standards for transactions in which a government receives, or is entitled to, resources in exchange for future cash flows generated by collecting specific receivables or specific future revenues. 11 also provides disclosure requirements for a govemment that pledges or commits future cash flows from a specific revenue source. In addition, this Statement establishes accounting and financial reporting standards for lithe - entity transfers of assets and future revenues. The 1 156 Area Comments Accounting Practices, Continued Management's Judgments and Accounting Estimates requirements of this Statement, effective for the Commission beginning with its fiscal year ended June 30, 2008, did not materially impact the Commission. • GASB Statement No. 50, Pension Disclosures -An Amendment of GASB Statements No. 25 and 2Z This Statement, issued in May 2007, more closely aligns the financial reporting requirements for pensions with those for other posfemployment benefits and in doing so, enhances information disclosed in notes to the financial statements or presented as required supplementary information by pension plans and by employers that provide pension benefits. The requirements of this Statement were effective for the Commission beginning with its fiscal year ended June 30, 2008. • GASBStatement No. 51,Accounting and Financial Reporting for intangible Assets. This Statement, issued in July 2007, characterizes an intangible asset as an asset that lacks physical substance, is non- financial in nature, and has an initial useful life extending beyond a single reporting period. This Statement requires that intangible assets be classified as capital assets (except for those explicitly excluded from the scope of this Standard). The requirements of this Statement are effective for financial statements for periods beginning after June 15, 2009. However, the Commission elected to early implement this Statement for its fiscal year ended June 30, 2008. Significant or Unusual Transactions We did not identify any significant or unusual transactions or significant accounting policies in controversial or emerging areas for which there is a lack of authoritative guidance or consensus. Alternative Treatments Discussed with Management We did not discuss with management any alternative treatments within generally accepted accounting principles for accounting policies and practices related to material items during the current audit period. Summary information about the process used by management in formulating particularly sensitive accounting estimates and about our conclusions regarding the reasonableness of those estimates is in the attached Summary of Accounting Estimates. 2 • 157 Area Financial Statement Disclosures Audit Adjustments Uncorrected Misstatements Disagreements with Management Consultations with Other Accountants Significant Issues Discussed with Management Difficulties Encountered in Performing the Audit Letter Communicating Significant Deficiencies and Material Weaknesses Certain Written Communications Between Management and Our Firm Comments 1n our meeting with you on October 27, 2008, we discussed with you the following items as they relate to the neutrality, consistency and clarity of the disclosures in the financial statements: • Subsequent events pertaining to the volatility in the financial markets • Pensions and other postemployment benefits There were no audit adjustments made to the original trial balance presented to us to begin our audit There were no uncorrected misstatements. We encountered no disagreements with management over the appfieation of significant accounting principles, the basis for management's judgments on any significant matters, the scope of the audit, or significant disclosures to be included in the financial statements. We are not aware of any consultations management had with other accountants about accounting or auditing matters. No significant issues arising from the audit were discussed or were the subject of com asponden ce with management. We did not encounter any difficulties in dealing with management daring the audit We are not aware of any significantdeficiencies or material weaknesses. Copies of certain written communications between our firm and the management of the Commission are attached as Exhibit A. 3 158 Riverside County Transportation Commission Summary of Accounting Estimates Year Ended June 30, 2008 Accounting estimates are an integral part of the preparation of financial statements and are based upon management's current judgment. The process used by management encompasses its knowledge and experience about past and current events and certain assumptions about future events. You may wish to monitor throughout the year the process used to compute and record these accounting estimates. The following describes the significant accounting estimates reflected in the Commission's June 30, 2008 financial statements: Area Useful Lives of Long- lived Assets Land and Property Acquisitions Accounting Policy The estimated useful lives of assets generally have the following ranges: rail stations 10 to 30 years; office furniture and equipment three to five years; vehicles five years. These assets are depreciated using the straight-line method. Land and rail operating easements are not depreciated and construction in process is rot depreciated until ready for service and capitalized. Land and property are acquired to facilitate the completion of various transportation projects undertaken by the Commission. The process of acquiring land and property is initiated with an environmental process notifying the property owner that the property is affected. Once the Commission acquires the property, title is held by the Commission until it is transferred to CALTRANS. These acquisitions are treated as expenditures by the Commission. Estimation Process Management reviews for any change in the useful service life of capital assets to estimate impairment of the value of the capital assets. An appraisal of the property is performed for the Commission by independent qualified appraisers. This appraisal is then reviewed by another independent qualified appraiser. 4 Comments We tested the reasonableness of information underlying management's estimate. Based on our procedures; we concluded that assigned useful lives of capital assets are reasonable. We tested the reasonableness of the information underlying the appraisal process. Based on our procedures, we concluded that land and property valuations as recorded by the Commission are reasonable. 159 • Area Pension Obligations and Postemployment Benefits Other than Pensions • • Riverside County Transportation Commis.SlOR Summary of Accounting Estimates. Continued. Year Ended June 30.2008 Accounting Policy Record pension and postengployrnent benefit costs based on an estimated antral contribution rate. Estimation Process For poslemployment benefits other than pensions, management utilizes an actuarial consulting firm to perform an evaluation using the entry age actuarial cost method. For pension °Watlons, management utilizes CaIPERS actuaries for cost sharing multiple - employer plans. A cost sharing multiple -employer plan is a pooling arrangement whereby risks, rewards and benefit costs are shared and not attributed individually to any single employer. 5 Comments We tested the reasonableness of the information underlyiruj the actuarial evaluations. Based on our procedures, we concluded that the costs recorded are reasonable, 160. Recently Issued Accounting Standards The GASB has issued several statements not yet implemented by the Commission. The Commission's management has not yet determined the effect these Statements will have on the Commission's financial statements. However, the Commission plans to implement all standards by the required dates. The Statements which might impact the Commission areas follows: GASB Statement No 49, Accounting and This Statement, issued November 2006, will be effective for the Financial Reporting for Pollution Commission beginning with its fiscal year ending June 30, 2009. Remediation Obligations This Statement addresses accounting and financial reporting standards for pollution (including contamination) remediation obligations, which are otifigations to address the current or potential detrimental effects of existing pollution by participating. in pollution remediation activities, such as site assessments and cleanups. This standard requires the government to estimate the components of expected pollution remediation outlays and detemdne whether the outlays for those components should be accrued as a fiabbiity or, if appropriate, capitalized when goods and services are acquired. GASB Statement No. 53, Accounting and This Statement, issued June 2008, will be effective for the Financial Reporting for Derivative Commission beginning with its fiscal year ending June 30, 2010. Instruments This Statement addresses the recognition, measurement and disclosure of information regarding derivative instruments entered into by state and local governments. The objectives, terms and risks of hedging derivative instruments are required disclosures. Disclosures also include a summary of derivative Instrument activity that provides an indication of the location of fair value amounts reported on the financial statements. 6 161 • • • Exhibit A —Certain Written Communications Between Management and Our Firm 162 • • Riverside Camay Regional Complex 4080 Lemon &rem 3rd Floor • Riverside, G ltfiwaia MailingMinor No Office Box 12008 • Riverside, California 92502-2208 Phone (951) 787-7141 • Fax (951)787-7920 • www.trt mg Octoter 30, 2008 McGladrey & Pullen, LLP 3880 Leman Street, Suite 400 Riverside, California 92501 In connection with your audit of the basic financial statements of the Riverside County Transportation Commission {Commission), California, as of and for the year ended June 30, 2008, and the financial statements of the State Transit Assistance Fund (STAF) and Local Transportation Fund (LTF) of the County of Riverside, as administered by the Commission, as of and for the year ended June 30, 2008, we confirm that we are responsible for the fair presentation in the financial statements of financial position and changes in financial position in conformity with accounting principles generally accepted in the United States of America. We confirm to the best of our knowledge and belief, as of October 31, 2008, the following representations made to you during your audit 1. The financial statements referred to above are fairly presented in conformity with accounting principles generally accepted in the United States of America. 2. We have identified for you all organizations that are a part of this reporting entity or with which we have a relationship, as these organizations are defined in Section 2100 of the Govemmental Accounting Standards Board's (GASB) Codification of Governmental Accounting and Financial Reporting Standards, that are component units and jointly govemed organizations In which we participated. In that regard, the Service Authority for Freeway Emergencies (SAFE) is a component unit of the Commission. The jointly govemed organizations that the Commission is a member of are the Southern California Regional Rail Authority (SCRRA) and the Riverside Orange Corridor Authority. 3. We have identified for you aN of our funds and govemmental functions. 4. We hate property classified at funds and activities. 5. We have property determined and reported the major governmental funds based on the required quantitative criteria. We have determined the Debt Seance Fund to be major for public interest reasons. We believe that the judgmentally determined major fund is particularly important to the financial statement users. 6. We are responsible for compliance with laws and regulations applicable to the Commission, LTF, and STAF, including adopting, approving, and amending budgets. 7. We have identified and disclosed to you all laws and regulations that have a direct and material effect on the determination of financial statement amounts or the financial data significant to audit objectives, including legal and contractual provisions for reporting specific activities in separate funds. 8. We have made available to you: 163 McGladrey & Pullen, LLP October30, 2008 Page 2 a) All financial records and rebted data of aN funds and activities, inching those of all special funds, programs, departments, projects, activities, etc., in existence at any time during the period covered by your°audti. b) All minutes of the meetings of the governing board and committees of board members or summaries of actions of recent meetings for which minutes have not yet been prepared. 9. There have been no communications from grantors, lenders, other funding sources, or regulatory agencies concerning noncompliance with: a) Statutory, regulatory, or contractual provisions or requirements. b) Financial reporting practices that could have a material effect on the financial statements. 10. We have no knowledge of fraud or suspected fraud affecting the entity involving: a) Management or employees who have significant roles in the internal cont of b) Others where the fraud could have a material effect on the financial statements. 11. We acknowledge our responsibility for the design and implementation of programs and controls to provide reasonable assurance that fraud is prevented and detected. 12. We have no knowledge of any allegations of fraud or suspected fraud affecting the Commission received in communications from employees, former employees, analysts, regulators, short sellers, or others. 13. We are aware of no significant deficiencies, Including material weaknesses, in the design or operation of internal controls that could adversely affect the Commission's ability to record, process, summarize, and report financial data. 14. There have been no communications from regulatory agencies conceming noncompliance with, or deficiencies in, financial reporting practces. 14. We have no plans or intentions that may materially affect the canying value or classification of assets and liabilties. 15. The following have been properly recorded andlor disclosed in the financial statements: a) Related -party transactions, including those with SAFE for which the Commission is considered financially accountable, jointly governed organizations in which the Commission participates, and those with STAF and LTF, as defined in Section 2100 of the GASB's Codification of Governmental Accounting and Financial Reporting Standards, and interfund transactions, including interfund accotmts receivable and payable and inierkrnd transfers, oil of which have been recorded in accordance with the economic substance of the transaction and appropriately classified and reported. There are related party transactions other than those noted above. b) Lines of credit or similar arrangements. c) Security agreements in effect under the Uniform Commercial Code. • • 164 McGladrey & Pullen, LLP October 30, 2008 Page 3 d) Revenue which was pledged as collateral for debt tiabilty. e) The fair value of investments. f) Amounts of`c contactual obligations for the construction and purchase of real property or equipment not included in the fmbillties or encumbrances recorded on the books. g) Debi issue provisions. h) All leases and material amounts of rental obligations under long-term leases. R All significant estimates and material concentrations known to management which are required to be disclosed in accordance with the AICPA's Statement of Position 94-6, Disclosure of Certain Significant Risks and Uncertainties. Significant estimates are estimates at the balance street date which could change materially within the next year. Concentrations refer to volumes of business, revenues, available sources of supply, or markets for which events could occur which would signifcandy disrupt normal finances within the nod year. j) Authorized but unissued bonds and/or notes. k) Risk financing activities. I) Derivative financial instruments. m) The effect on the financial statements of GASB Statement No. 49, Accounting and Financial Reporting for Pollution Remediafian Obligations; and Statement No. 53, Accounting and Financial Reporting for Derivative instruments, which have been issued, but which we have not yet adopted. n) Deposits and investment securities category of custodial credk risk. o) Arbitrage rebate liabilities. P) Unpaid requests for disbursements to STAF or LTF claimants that have not been paid by June 30, 2008. The unreserved, undesignated fund balances for STAF and LTF are free and unencumbered for future use as outlined in the Transportation Development Act. 16. We are responsible for making the accounting estimates Included in the financial statements. Those estimates reflect our judgment based on our knowledge and experience about past and current events and our assumptions about conditions we expect to exist and courses of action we expect to take. In that regard, adequate provisions have been made to reduce receivables to their estimated net collectible amounts and for pension obligations, post -retirement benefits other than pensions and deferred compensation agreements attributable to employee services rendered through June 30, 2008. 17. There are no: a) Material transactions that have not been property recorded In the accounting records underlying the financial statements. 165 McGladrey & Pullen, LLP October 30, 2008 Page 4 b) Violations or possible violations of laws or regulations whose effects should be considered for disclosure In the financial statements, or as a basis for recording a loss contingency or noncompliance. In that regard, we specifically represent that we have not been designated as or alleged to be, a "potentially responsible party` by the Federal :Environmental Protection Agency or arty equivalent state agencies in connection with any environmental contamination. c) Other material liabilities or gain or Ions contingencies that are required to be accrued or disclosed by Statement of Finandal Accounting Standards No. 5 and/or GASB Statement No.10, except for the $2.8 million accrued for the ligation matter, for which it is management's position that the Commission's obligation against this clam is baited to this amount; and the impact, if any, on the Commission from the Metrolink train ardent; for which an accrual has not been made. d) Allocations to STAF or LTF claimants whir are in violation of the statute )imitations as outlined in the Transportation Development Act. e) Guarantees, whether wtii6o or oral, under which the Commission is contingently frable: f) Arrangements with financial institutions involving compensating balances or other arrangements involving restrictions on cash balances. g) Agreements to repurchase assets previously sold. h) Other liens or encumbrances on assets or revenues or any assets or revenues which were pledged as collateral for any liability or which were subordinated in any way. i) Liabilities which are subordinated in any way to any other actual or possible liabilities, j) Debt issue repurchase options or agreements, or sinking fund debt reptod law ordinance requirements. m) Special or extraordinary items. n) Provisions for risk retention, including uninsured losses or loss retentions attributable to events °coining through June 30, 2008 and/or for expected retroactive insurance premium adjustments applicable to periods through June 30, 2008. o) Investments or other assets that have permanently declined in value. p) Material losses to be sustained in the fulfillment of, or from the inability to fulfill, any service commitments. q) Material losses to be sustained as a result of purchase commitments. r) Environmental cleanup obligations. s) Impairments of capital assets. 18. We have no direct or indirect, legal or moral, obligation for any debt of any organization, public or private, that is not disclosed in the financial statements. 166 itllcGladrey & Pullen, UP October 30, 2008 Page 5 19. We have satisfactory trite b - owned assets. 20. We have complied with all aspects of contractual agreements that would have a material effect on the financial statements in the event of noncompliance. 21. Net asset components (invested in capital assets, net of related debt; restricted; and unrestricted) and fund balance reserves and designations are properly classified and, if applicable, approved. 22. Expenses have been appropriately dassified In or allocated to functions and programs in the statement of activities, and allocations have been made on a reasonable basis. 23. Revenues are appropriately classified in the statement of activities within program revenues and general revenues. 24. Capital assets, including amounts for right-of-way, are property capitalized, reported and depredated (if applicable). 25_ Required supplementary Information is properly measured and presented. In connection with your audit, conducted in accordance with Government Auditing Standards, we confirm: 26. We are responsible for. a. Compliance with the laws, regulations, and provisions of contracts and grant agreements applicable to the Commission. b. Estabfishing and maintaining effective internal control over financial reporting. 26. We have identified and disclosed to you all laws, regulations, and provisions of contracts and grant agreements that have a direct and material effect on the detemiinations of financial statement amounts or other financial data significant to audit objectives. We are aware of no violations (or possible violations) of laws, regulations, and provisions of contracts and grant agreements whose effects should be considered for disclosure In the auditor repository or noncompliance. 27. We are aware of no instances of fraud, illegal acts, or violations of provisions of contracts or grant agreements. 28. We have a process to back the status of audit findings and recommendations. 29. We have identified for you previous financial audits, attestation engagements, performance audits, or other studies related to the objectives of the audit being undertaken and the corrective action taken to address significant findings and recommendations. In connection with your audit of federal awards conducted in accordance with OMB Circular A-133, Audits of States, Local Governments, and Non-Profrf Organaations, we confirm: 30. We are responsible for complying, and have complied, with the requirements of Circular A-133. 31. We have prepared the schedule of expenditures of federal awards in accordance with Circular A-133 and have included expenditures made during the period being audited for all awards provided by federal agencies in the form of grants, federal cost -reimbursement contracts, loans, loan guarantees, property (induding donated surplus property, cooperative agreements, interest subsidies, insurance, food commodities, direct appropriations, and other assistance. 167 McGladrey & Pullen, LLP October 30, 2008 Page 6 32. We are responsible for establishing and maintaining, and have established and maintained, effective internal control over compliance for federal programs that provides reasonable assurance that the Commission is managing federal awards in compliance with taws, regulations, and the provisions of contracts or grant agreements that could have a material effect on our federal programs. 33. We are responsible for complying with the requirements of laws, regulations, and the provisions of contracts and grant agreements related to each of the Commission's federal programs and have complied, in all material respects, with those requirements. 34. We have identified and disclosed to you the requirements of laws, regulations, and the provisions of contracts and grant agreements that are considered to have a direct and material effect on each major Program. 35. There are no intones in which the Commission has its own interpretation of any compliance requirements that have varying interpretations. 36. We have made available all contracts and grant agreements (including amendments, if any) and any other correspondence that has taken place with federal agencies or pass -through entities related to federal programs. 37. There are no amounts questioned or known noncompliance with the requirements of federal awards, including those resulting from other audits or program reviews. 38. We have charged costs to federal awards in accordance with applicable cost principles. 39. We have made available to you all documentation related to the compliance requirements, Including information related to federal program financial reports and claims for advances and reimbursements. 40. Federal program financial reports and claims for advances and reimbursements are supported by the books and records from which the basic financial statements have been prepared. 41. The copies of federal program financial reports provided to you are true copies of the reports submitted, or electronically transrnkted, to the federal agency or pass -through entity, as applicable. 42. We have no subrecipients of Federal awards. 43. We are responsible for and have accurately prepared the summary schedule of prior audit findings to include all findings required to be included by Circular A-133. In that regard, there were no prior audit findings noted. 44. There are no prior audit findings by federal awarding agencies and pass -through entities. 45. We have accurately completed the appropriate sections of the data collection form. 46. We have disclosed ail contracts or other agreements with service organizations. We are not aware of noncompliance at these organizations. 47. We are aware of no noncompliance occurring subsequent to the period for which the compliance is audited. 48. There have been no changes in intemal control over compliance or other factors that might significantly affect intemal control since the date as of which compilance is audited. 168 j McGladrey d Pullen, LLP October 30, 2008 Page 7 49. There have been no material modifications to our joint venture agreement with the SCRRA that would materially impact the Commission's participation. 50. All designated employees have lied the required Statements of Economic Interest as outlined in the Commission's conflict of interest code. 51. Allocated and unallocated amounts reserved for transit purposes for LTF total $73,218,907 and designated umilocated apportionments for LTF bicycle and pedestrian: projects total $1,703,540 as of June 30, 2008. Allocations available for transit programming and reserved for STAF total $20,000,860 and reserves for unclaimed allocations total $11,482,442. AN allocated amounts have been approved by the Riverside County Transportation Corrunission. 52. 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 way and mitigation land acquisition and project development casts of capital projects under the 2009 Measure A. In 2005 2007, and 2008, the Commission issued commercial .paper notes of $30,005,000, $50,000,000, and $30 000,059 respectively, in Jtme 2008 the Commission issued Measure A sales tax revenue bonds, theproceeds of which were used th pay off the commercial paper in its entirety. Tterefore, there is no outstanding commercial ;paper as of Jane 30, 2008. As a requirement for the issuance of the commercial paper notes, the Commission entered into a $190,000,000 irrevocable direct draw letter of credit and reimbursement agreement with a financial institution as liquidity support for the commercial paper notes. The letter of credit may be used for debt service on the commercial paper notes. Amounts drawn on the letter of credo are not due until expo of the letter of credit in March 2010. The Commission did not draw on this letter of credit authorization during the year ended June 30, 2008, nor were there any amounts outstanding under this letter of credit agreement at June 30, 2008. 53. In May 2006, the Commission entered into a cooperative agreement, Riverside Orange Corridor Authority, with the Orange County Transportation Authority and the Transportation Corridor Agencies to jointly exercise the common powers of the parties to manage geotechnical studies regarding the Riverside Orange Corridor. The Commission is the recipient and administering entity of federal and state funds as may be necessary to accomplish this work, and the three agencies will share in meeting the local agency matching requirements. As of June 30, 2008, the Commission was not required to make any contributions. 54. In January 2006, the Commission authorized the TUMF Special Revenue fund to advance $3,114,600 to the State to reply state and federal funding for the State Route (SR) 911Green River interchange project During the year ended June 30, 2008, $743,993 was advanced to the State from the TUMF Special Revenue fund for the SR-91 project. In December 2004, the Commission authorized the TUMF Special Revenue fund to advance $13,048,000 to the State to replace state and federal funding for the SR-60 widening project from Interstate 15 to Valley Way. The final agreement with the State resulted in a reduction of the Commission's commitment to $8,881,000. During the year ended June 30, 2008, $543,368 had been advanced to the State from the TUMF Special Revenue fund for the SR-60 widening project. 169 McGsdrey&Pullen, LLP' October 30, 2008 Page.a The advances are to be repaid in the form of a commitment of future State funding on TUMF projects, and, accordingly, the aggregate advances of $1,287,361:during the year ended June 30, 2008 were recorded as highway expenditures of the TUMF Special Revenue fund. Cumulative advances as of June 30 2008 for the SR 91/Green River interchange and SR-60 widening projects were $3,114,600 and $8636,096, respectively. 65. From time to time, the Commission's agreements wdh various third parties are modified or amended to adjust for cost overruns and other factors. These modifications are considered to be ordinary courses of action and are incorporated into the Commission's budgetary process as revisions to the original adopted budget. 56. As a means to achieve a greater level of interest rate stability in connection with an anticipated variable rate debt refinancing of the Commission's commercial paper program in 2009 and the outstanding 2008 salestax revenue bands, the Commission entered into two forward -starting interest rate swaps in August 2006 for a total national amount of $185,000,000. The counterparty for the first swap ($100,000,000 notional amount) is Bank of America, N.A., and the counterparty for the second swap ($85,000,000 notional amount) is Lehman Brothers Derivative Pmducts Inc. Under the swap agreements which become effective in October 2009, the Commission will pay the counterparties a fixed rate of 3.679% for twenty years, the expected term of the variable rate debt to be rued in 2009; the counterpartles MI pay the Commission a floating rate equal to 67% of the one -month London Interbank Offer Rate (LIBOR). The interest rate swaps are, among other things, subject to credit, basis, and termination risk. The credrl and termination risks have been mitigated with collateral posting requirements by the counterparty in the event of a ratings downgrade beam a specified threshold. Upon issuance of the variable rate debt in 2009, bass risk Is expected to be mitigated with a variable rate paid to bond holders that approximates the 67% of one -month LIBOR to be received from the caunterpartiea Accordingly, the interest rate swaps effectively create synthetic fired rate debt for the Commission. The swap policy adopted by the Board of Commissioners requires the Commission to calculate the fair termination values of its swaps at least annually. The calculation of the fair termination value takes into consideration the prevailing interest rate environment, the specific terms and conditions of a given transaction, and any upfront payments that were received, if any. Fair valuations of termination values are realized only if the swaps were to be terminated at the valuation date, and only the Commission retains the right to optionally terminate most of the transactions. As of June 30, 2008, the negative fair values for the $100,000,000 swap with Bank of America and the $85,000,000 swap with Lehman Brothers DP were estimated by an independent third -party to be $2,843,636 and $2,418,108, respectively. Therefore, if the swaps were terminated on June 30, 2008, the Commission would have paid a termination payment of $2,843,636 and $2,418,108 to Bank of America and Lehman Brothers DP, respectively, for a total termination payment of $5,261,744. The termination payments that would have been paid by the Commission if the swaps were terminated on June 30, 2008 are a result of the change in interest rate levels and certain interest rate relationships. The rate used to calculate the fixed swap payment owed by the Commission to the swap providers is 3.679%. As of June 30, 2008, this fixed rate was higher than the current rate for a swap of identical terms and conditions. 170 McGladrey &Pullen, UP October 30, 2008 Page 9 In September 2008, Lehman Brothers Holdings filed for bankruptcy, which was a trigger event under the swap agreement with Lehrnan Brothers DP. As 'a result of the bigger event, the swap agnement was terminated on September 23, 2008. A termination payment of $3,452,453 was paid b Lehman Brothers DP on October 1, 2008. The Commission entered into a replacement swap with Deutsche Bank AG for a notional amount of $85,000000 on September 24, 2008. Under the swap agreement with Deutsche Bank, which becomes effective in October 2009, the Commission will pay Deutsche Bank as the counterparty a fixed rate of 3.208% for twenty years; the new counterparty will pay the Commission afloating rate equal to 67% of the one month LIBOR. 57. Certain preliminary engineering costs related to the development of toil roads are recorded as construction in progress, as the Commission anticipates obtaining franchise rights from the state to operate such toll roads for a certain period of time. Accordngly, the Commission adopted Govemment Accounting Standards Board (GASB) Statement No. 51, Accounting and Financial Reporting for Intang►2de Assets, during the year ended June 30, 2008. No events or transactions, other than those disclosed in the financial statements, have occurred subsequent to the balance sheet date that would require adjustmentto, or disclosure in, the financial statements. During the course of your audfi, you may have accumulated records containing data which should be reflected in our books and records. All such data have been so reflected. Accordingly, copies of such records in your possession are no bgger needed by us. RIVERSIDE COUNTY TRANSPORTATION COMMISSION ne Mayer, Executive Dr bar 9).4,(Azet.,t- Theresia Trevino, Chief Financial Officer 171 ATTACH/SENT 7 McGladrey& Pullen Certified Pudic Accountants Independent Accountant's Report on Applying Agreed -upon Procedures Board of Commissioners Riverside County Transportation Commission Riverside, California We have pertom>ed the procedures enumerated below to the accompanying Appropriation; Limit Calculation of the Riverside County Transportation Commission (the Commission) for the year ended June 30, 2008. These procedures, which were agreed to by the Commission and the League of California Cities (as presented in the publication entitled Aid -upon Procedures Applied to the Appropriations Limitation Prescribed by Article )011-B of the California Consfiiutfon), were performed solely to assist the Commission in meeting the requirements of Section 1,5 of Article Xill-B of the California Constitution. The Commission's management is responsible for the Appropriations Limit Calculation. This agreed -upon procedures engagement was conducted in accordance with attestation standards established by the American Institute of Certified Public Accountants. The sufficiency of these procedures is solely the responsiblily of those parties specified in this report. Consequently, we make no representation regarding the sufficiency of the procedures described below either for the purpose for which this report has been requested or for any other purpose. The procedures performed and our findings were as follows: 1. We obtained the completed internal calculations and compared the limit and annual adjustment factors included in those calculations to the limit and annual adjustment factors that were adopted by a resolution of the Board of Commissioners. We also compared the population and inflation option; included in the aforementioned calculations to those that were selected by a recorded vote of the Board of Commissioners. Finding: No exceptions were noted as a result of our procedures. 2. For the accompanying Appropriations Limit Calculation, we added line A, last year's limit, to line E, total adjustments, and compared the resulting amount to line F, this year's limit. Finding: No exceptions were noted as a result of our procedures. 3. We compared the current year information presented in the accompanying Appropriations Limit Calculation to the supporting calculations described in item 1 above. Finding: No exceptions were noted as a result of our procedures. 4. We compared the prior year Appropriations Limit presented in the accompanying Appropriations Limit Calculation to the prior year Appropriations Limit adopted by the Board of Commissioners during the prior year. Finding: No exceptions were noted as a result of our procedures. We were not engaged to, and did not, conduct an audit, the objective of which would be the expression of an opinion on the accompanying Appropriations Limit Calculation of the Commission. Accordingly, we do not express such an opinion. Had we performed additional procedures, other matters might have come to our attention that would have been reported to you. No procedures have been performed with respect to the determination of the appropriations limit for the base year, as defined by Article XIII-B of the California Constitution. McGladrey 8 PuYen, UP is a amber him of RSM International, an Bata an of separate and independent legal endlies. 172 This reportis 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. However, this report is a matter of public record and its distribution is not limited: /�ppPiK` L G� Riverside, California October 30,:2008 • 173 Riverside County Transportation Commission Appropriations Limit Calculation YearEndedJune 30, 2008 Amount Source A. Last year's limit $ 265,455,468 B. Adjustment factors: 1. Population change 1.0330 Slate Finance 2. Per capita change 1.0550 State Finance Total adjustments [(B.1 x B.2)-1.01 0.0898. C. Annual adjustment 23,841,883 . (BxA) D. Other adjustments: 1. Lost responsibility (-) 2. Transfer to private (-) 3. Transfer to fees (-) 4. Assumed responsibility (+) Subtotal E. Totai adjustments 23,841,883 (C+D) F. This years limit $ 289,297,351 (A+E) 174 ATTACHMENT 8 McGladrey& Pullen Certified Pubic Accountars Independent Accountant's Report on Applying Agreed -upon Procedures Board of Commissioners Riverside County Transportation Commission and Board of Directors, inland Transportation Services Riverside, Califomia We have performed the procedures enumerated below, which were agreed to by the Riverside County Transportation Commission (Commission) and inland Transportation Services (ITS), solely to assist the specked parties with respect to the purchase of gift certificates and the payment of incentives related to the Commuter Assistance Program (Program) administered by ITS for the year ended June 30, 2008. This agreed -upon procedures engagement was conducted in accordance with attestation standards established by the American Institute of Certified Public Accountants. The sufficiency of these procedures is solely the responsibility of those parties specified in this report. Consequently, we make no representation regarding the sufficiency of the procedures described below, either for the purpose for which this report has been requested or for any other purpose. As background Information for engagement to perform agreed -upon procedures, we were provided with: Resolution No. 03-025, Resolution of the Commission Amending Guidelines for the Administration of the Measure A Funded Committer incentive Projects as part of its Program, and Agreement No. 00-41-021-06, Amendment Na 6 0 the Agreement for Development and Management of Commuter Assistance between ITS and the Commission, entered into as of July 14, 2006. In addition, we received an explanation of the ITS registration process with the employer and employee from the program manager of ITS. The procedures and related findings are as follows: 1. We obtained a list of all disbursements recorded by the Commission to vendors for the purchase of gift certificates for the year ended June 30, 2008 and judgmentally selected a sample of 10 disbursements for selected testing (see Exhibit 1). Our procedures and findings related to Exhibit 1 are as follows: a. We agreed the amount recorded as disbursed by the Commission to canceled checks or warrants without exception. b. We agreed the amount recorded as disbursed to vendors to the ITS payment requests without exception. c. We agreed the amount recorded and the payee to the log of requested gift certificates maintained by ITS without exception. 2. We obtained the "Rideshare Payment" Reports that list recorded disbursements made to recipients by ITS for the year ended June 30, 2008 and judgmentally selected a sample of 10 items for selected testing (see Exhibit 2). Our selected testing and findings related to Exhibit 2 are as follows: a. We obtained the Employer Information Form and Statement of Participation (SOP) for the employer indicating its participation with ITS as a participant No exceptions were noted. b. We obtained the Employee Enrollment Form indicating the employee is registered with ITS as a participant. No exceptions were noted. McGladrey 8 Pullen. LLP is a member irm of nSM International, an affiliation of separate and'ndependent legal entitles. 1 175 c. We agreed ITS' disbursement to the employee claim form, noting proper approval of the claim, without exception. d. We recalculated the number of days the employee participated in each rideshare mode and the incentive earned for each rideshare male and agreed those totals to the amounts listed on the monthly incentive claim form without exception. e. We agreed the daily amount of reimbursement per mode of transportation to the amount approved in. Resolution No. 03-025 without exception. f. We agreed the recorded disbursement amount per the incentive Payment Report to the employer transmittal letter without exception. 3. We compared ITS' total gift certificate inventory balance from gift certificate inventory schedules provided by ITS as of June 30, 2008 to the actual gift certificates maintained by ITS by judgmentally selecting certain gift certificates for mounting. No exceptions were noted. The gift certificate inventory balance per the inventory schedules as of June 30, 2008 is $144,517. We were not imaged to and did not conduct an audit, the objective of which would be the expression of an opinion on the specified elements, accounts or items thereof related to the program. Accordingly, we do not express such an opinion. Had we performed additional procedures, other matters might have comet our attention that would have been reported to you. This report is intended solely for the information and use of the Board of Commissioners and management of Riverside County Transportation Commission and the board otdirectors and management of Inland Transportation Services, and is not intended to be and should not be used by anyone other than these specified parties. C ror. /4 ,y T 4pi�p:-„r L GIB Riverside, California October 30, 2008 2 176 • • • Exhtit 11 Riverside County Transportation Commission and Inland Transportation Services Schedule of Selected Purchases of Gift Certiiicabes. Fiscal Year Ended June 30, 2008 Project Vendor Voucher Dale Amount Check # Advantage Vons 07/10/07 $ 25,000 37737 Advantage Stater Bras 07/10/07 25,000 37728 Advantage Stater Bros 10/04/07 25,000 38622 Advantage Vons 10104/07 20,1300 38635 Advantage Vons 01/10/08 20,000 39556 Advantage- CV Stater Bros 07/02/07 5,000 37584 Advantage -CV Vons 03/11/08 20,000 40227 Option Stater Bros 10/04/07 20,000 38622 Option Stater Bros 01/10/08 20,000 39538 Option Vons 03/11/08 15,000 40227 3 177 Exhibit 2 Riverside County Transportation Commission and Inland Transportation Services (Contractor) Schedule of Selected Employee Incentive Payments Made by the Contractor Fiscal Year Ended June 30, 2008 Employee Incentive Commute Disbuiseuren t Initials Employer Name Type Mode Date Amount K.G. County of Riverside Vons Carpool 04)24/08 $ 105 A.T. Finesse Personnel Vons Carpool 05/2NN 140 A.M. Naval Surface Warfare Center Vons Carpool 08/13/07 105 Y.M. Penn Emblem Vons Carpool 12/03/07 135 J.A. Bighom Golf Club Vons Carpool 021=08 100 M.G. Cardinal Health Care Vons Carpool G1/09/08 125 S.R. County of San Bernardino Vons Public Bus 03/19/08 105 A.D. Leggett & Platt Vans Carpool 12/05/07 120 T.C. City of San Bemardino Stater Bros Carpool 08/02/07 130 R.G. National Training Center Stater Bros Vanpooi 04/03/08 1.30 • 4 178 • ATTACHMENT Riverside County Regional Complex 4080Lemon Smell 3rd Floor • Riverside, Cal*rnia MagirsgAddre s: Pon Office Box 12008 • Riverside, California 92502 2208 Phone (951) 787-7141 • Fax (.951) 787-7920 • mnnarec:oig November 10, 2008 Board of Commissioners Riverside County Transportation Commission Riverside, California The Comprehensive Annual Financial Report (CAFR) of the Riverside County Transportation Commission (Commission) for the year ended June 30, 2008 is hereby submitted for your receipt and acceptance. The CAFR 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 CAFR. As the Executive Director and Chief Financial Officer of the Commission, we have reviewed the CAFR for the year ended June 30, 2008. Based on our knowledge, the CAFR 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 CAFR not misleading with respect to the period covered by the CAFR. Additionally, based on our knowledge, the financial statements and other financial information included in the CAFR 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, 2008. nne Mayer, Executive Director Theresia Trevino, Chief Financial Officer 179 ATTACHMENT 10 • • Riverside County _ransportation Commission November 10, 2008 Riverside County Regional Complex 4080 Lemon Street, 3rd Floor • Riverside, California Mailing Addrus: Port Office Box 12008 • Riverside, California 92502-2208 Phone (951) 787-7141 • Fax (951) 787-7920 • urunantc org Board of Commissioners Riverside County Transportation Commission Riverside„ California In connection with the submission of the Comprehensive Annual Financial Report (CAFR) of the Riverside County Transportation Commission (Commission) for the year ended June 30, 2008, 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, 2008. The controls and procedures have been effective for the year ended June 30, 2008 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, 2008. 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. ohn Standiford, J puty Executive Director 180 Cathy Becht e , Project Development Director Michael Blomquist, J I Programs Director M enstra, Project Delivery Director �te.�e,ac�u resia Trevino, Chi d=1 Services Director • 181 RIVERSIDE COUNTY TRANSPORTATION COMMISSION DATE: November 24, 2008 TO: Budget and Implementation Committee FROM: Shirley Medina, Programming and Planning Manager THROUGH: Cathy Bechtel, Project Development Director SUBJECT: Coachella Valley Association of Governments/SunLine Agency Audit Resolution Transit STAFF RECOMMENDATION: This item is for the Committee to: 1) Approve the Coachella Valley Association of Government's (CVAG) request to deprogram three projects previously approved for Congestion Mitigation and Air Quality (CMAQ) funds in the amount of $2,636,997; 2) Reduce the Salton Sea Air Basin (SSAB) CMAQ funding by $2,552,971 in the next federal transportation authorization; 3) Authorize the Executive Director, pursuant to legal counsel review, to enter into Memorandum of Understanding (MOU) No. 09-66-51-00 with Caltrans regarding payment of disallowable CMAQ funds; and 4) Forward to the Commission for final action. BACKGROUND INFORMATION: CVAG and SunLine Transit Agency (SunLine) have proposed a payment option to address the disallowable costs that were identified in the February 2008 Caltrans Incurred Cost Audit Report. The report disallows $5,189,968 of claimed costs on two federally funded CMAQ projects because the claimed costs were not adequately supported nor in compliance with agreement provisions and state and federal regulations. Sunline Services Group (SSG) was formed by SunLine to provide Regional PM 10 street sweeping in the Coachella Valley. The February 2008 Caltrans audit revealed that the there were unallowable program costs incurred by SSG and that invoices and verification of payment were inadequate. Additionally, the audit cited that there were unsigned agreements and lack of agreement provisions. Of the $5,189,968 disallowed costs, $4,599,635 consisted of operational costs and $590,333 was equipment costs. Agenda Item 9 182 Caltrans, as the administrator of federal funds, is required to pay back disallowable costs to the Federal Highway Administration (FHWA) and deobligate federal funds associated with the ineligible project(s). Rather than seek direct pay back from CVAG, Caltrans proposed that it retains the deobligated funds and apply them to State Highway System projects. In order to pay back the Riverside County CMAQ program, CVAG, SunLine and the city of Palm Desert are proposing the deletion or deprogramming of CMAQ funds for three projects totaling $2,636,997. These projects were the lowest scoring projects in the recent CVAG CMAQ call for projects and are as follows: Project Description Amount Recommended Action CNG Bus Purchase (2) for the Fred Waring Bus Service $ 734,799 Deprogram project CNG Bus Purchase (3) for Routes Recommended from the Comprehensive Operation Analysis $ 1,102,198 Deprogram project *Palm Desert — Mid -Valley Bike Path $ 800,000 Reduce funding by $800,000 Total $ 2,636,997 *The CMAQ funding for the Palm Desert project is being reduced from $3 million to $2.2 million. CVAG is proposing that the balance of the payment, $2,552,971, be taken out of the next federal transportation authorization act. Therefore, future CMAQ funding for the SSAB will be reduced by the balance amount. The payback to the Riverside CMAQ program is summarized as follows: Fund Source Amount Deobligated projects/funds $2,636,997 Future SSAB funds $2,552,971 Total $ 5,189,968 Status of Deleted Projects • The SunLine projects that are being deleted from CVAG's CMAQ program have been proposed for Proposition 1 B transit funds, which will cover a portion of the project costs. SunLine will continue to seek additional funds to fully fund the projects or revise the project schedules. The Commission's role in the Proposition 1 B transit program is to collect the nominated transit Agenda Item 9 • • • 183 • • • projects, review for eligibility and concurrence, and submit them to Caltrans by November 30, 2008. The transit funds are scheduled to be allocated by the State Controller's Office in January 2009. • The city of Palm Desert will seek other funds to fully fund and implement the Mid -Valley Bike Path project. Commission staff concurs with the CMAQ payment option recommended by CVAG and will work with Caltrans on finalizing a MOU regarding the payment recommendation. Resolution of this issue has been a collaborative effort involving SunLine, CVAG, Caltrans, and Commission staff and has minimal impacts on current planning and programming processes. Financial Information In Fiscal Year Budget: N/A Year: N/A Amount: N/A Source of Funds: N/A Budget Ad ustment: N/A GLA No.: N/A Fiscal Procedures Approved: \J`it€4,44.0142.uv Date: 11/13/2008 Attachment: October 1, 2008 Letter from CVAG Agenda Item 9 184 CVAG 85428 CJ, JSt, AM, SM COACHELLA VALLEY ASSOCIATION of GOVERNMENTS • Blythe • Cathedral City • Coachella • Desert Mot Springs • Indian Wert • Indio • La Ouinta • Palm Desert • Palm Springs • Rancho Mirage County of Riverside • Ague Caliente Band cfi Cehuilla Indians • Cabmen Bend of Mission Indians • Torres Martinez Desert Ca s illa Indians October 1, 2008 • • Anne Mayer, Executive Director Riverside County Transportation Commission 4080 Lemon Street, 3rd Floor/P.O. Box 12008 Riverside, CA 92502-2202 Dear Ms. M n2 E CEITE OCT OS 2008 i 1ij The Coachella Valley Association of Governments (CVAG) discussed the Caltrans February 2008 incurred cost audit at the regularly scheduled September 29, 2008 Executive Committee meeting. The CVAG 13cecutive .Committee modified its July 29, 2008 direction to staff by voting to deprogram two SunLine projects totaling $1,836,997 and deprogram $800,000 of the Palm Desert $3,135,000 funding for the Bicycle Facility Project for a deprogrammed total of $2,636,977. On July 30, 2008, CVAG sent a letter to the Riverside County Transportation Commission (ROTC) respectfully requesting RCTC enter into a Memorandum of Understanding (MOU) with the California Department of Transportation (Caltrans) for repayment of CVAGs CMAQ reimbursement disallowed by the February 2008 incurred cost audit. This correspondence requested that all SunLine CMAQ (SAFETEA-LU) projects be deprogrammed. CVAG is still respectfully requesting RCTC enter into a MOU with Caltrans to allow for an alternate payment option with CMAQ funds. On August 1, the Board of Directors of the SunLine Services Group sent a letter to ROTC requesting that RCTC not get involved in this issue in order to give CVAG and SSG and opportunity to attempt to jointly resolve the financial impacts raised by the Caltrans audit On August 22, 2008, a joint meeting between two CVAG Executive Committee members and the Chair and Vice Chair of SunLine Transit Agency/SSG met to discuss options, other than deprogramming all SunLine CMAQ projects. The suggestion at this meeting was to deprogram the two lowest ranked Suntine CMAQ projects and $800,000 from the lowest ranked project, the Palm Desert Bicycle Fadlity. The Executive Committee accepted and approved this suggestion on September 29, 2008. The balance to be repaid rrom the future CMAQ cycle would be $2,552,991, or a balance of 49% of the incurred cost audit findings. Please find attached the September 29, 2008 staff report with the attachments (including the deprogrammed project descriptions). Thank you in advance for your assistance and consideration of our request. John M. Wohlmuth Executive Director cc: Mikel Oglesby, SunLine General Manager A.01.10 73-710 Fred Waring Drive, Suite 200 • Palm Desert, CA 92260 • (760) 346-1127 • FAX (760i 340-5949 185 Attachments COACHELLA VALLEY ASSOCIATION of GOVERNMENTS. DATE: September 29, 2008 TO: EXECUTIVE COMMITTEE _ FROM: John M. Wohlmuth, Executive Director SUBJECT: Regional Clean Street Management Program STAFF RECOMMENDED MOTION: That the Executive Committee consider the July 28, 2008 Executive Committee direction to staff, the TAC recommendation of September 12, 2008, and the SSG/CVAG meeting recommendation of August 22, 2008. Technical Advisory Committee Recommendation: CONCURRED with the July 28, 2008 Executive Committee direction to staff requesting RCTC and Caltrans enter into a MOU and deprogram $2.8 million of CMAQ funds programmed for SunLine. (Meeting of September'12, 2008) SSG/CVAG Meeting Recommendation: At this meeting, attendees representing the CVAG Executive Committee, (Mayor Roche and Mayor Benson) recommended RCTC and Caltrans enter into a MOU and deprogram the two lowest ranked SunLine projects ($1.6 Million) and_$800,000 of the $3.135 programmed for the Palm Desert Bicycle Facility Project. The total to be deprogrammed in the CMAQ cycle would be $2.6 million. (Meeting of August 22, 2008) Background: On July 28, 2008 CVAG staff and General Counsel went into closed session with the Executive Committee to discuss options to address the Caltrans Incurred Cost Audit performed on the Regional Clean Street Management Program for the period of November 1999 through May 2004. The Executive Committee directed CVAG staff to prepare a letter to Riverside County Transportation Commission (RCTC) requesting RCTC consider entering into a Memorandum of Understanding (MOU) with Caltrans to allow repayment of CMAQ funds over time. In addition, the Executive Committee directed staff to emphasize deprogramming $2.8 million of SunLine projects in the upcoming CMAQ cycle. The correspondence was prepared and is attached to this staff report as Attachment 1., At the SunLine Services Group (SSG) meeting of July 30, 2008, the SSG Board of Directors directed the General Manager, C. Mikel Oglesby to request that RCTC not become involved in this issue at this time, in order to allow CVAG and SSG an opportunity to meet and jointly resolve the financial impacts raised by the Caltrans audit. Please find attached the SSG letter to RCTC as Attachment 2. 16 ITEM 13A 186 COACHELLA VALLEY ASSOCIATION of GOVERNMENTS SSG requested a meeting with CVAG. SSG informed CVAG that Chair Michael Wilson, Vice Chair Bud England, and General Manager Mikel Oglesby would be attending the meeting as directed by their Board of Directors. CVAG staff was directed to send .a letter to RCTC. The Executive Committee did not provide direction, nor assign representatives front CVAG to meet with SSG. After discussing the issue with CVAG Chair Eduardo Garcia and Vice Chair Stephen Pougnet, CVAG staff asked Executive Committee members, Mayor Jean Benson and Mayor Mary Roche, to accompany the Executive Director to this meeting. The meeting between SSG/SunLine and CVAG took place on August 22, 2008. After hearing and discussing several options, it became clear that in order to move forward, a RCTC and Ca!trans MOU would be beneficial to resolving the audit with the least immediate financial impact. The discussion then focused on the projects to recommend deprogramming in an amount between $2.6 million and "$2 8 million. As it was the direction of the Executive Committee for staff to request RCTC deprogram all of SunLine's projects in this CMAQ cycle totaling $2.8 million, this would leave $2.3 million to be deprogrammed in a future CMAQ cycle. The suggestion made at the August 22, 2008 meeting was to deprogram the lowest ranked SunLine projects by points, totaling $1.8 million, and maintain the higher ranked Sunline Projects, totaling $973,000. The recommendation/suggestion was to remove $800,000 from the Palm Desert Bicycle facility projects, the lowest ranked project. The total amount to be deprogrammed under this option would be $2.6 million, leaving $2.6 million to be deprogrammed in a future CMAQ cycle. The list of projects and rankings are attached as Attachment 3. Attachment 4 is the project descriptions for projects being considered for deprogramming or partial deprogramming. At their meeting of September 12, 2008, the Technical Advisory Committee (TAC) recommended the deprogramming of the SunLine projects, totaling $2.8 million. 17 • • 187 -CVAG .COACHELLA VALLEY ASSOCIATION of GOVERNMENTS. alyche • Cathedral City • Coachella • Desert Hot Spnngs • Indian Wells • Indio • to Quints • Paid] Desert • Palm Sonngs • Rancho Mirage County of Riverside • Ague Caliente Band of Cahuilla Indians • Calzazon Band of Mission :Indians • Torres Martinez Desert Cahuiila Indians • July 30, 2008 Anne Mayer, Executive Director Riverside County Transportation Commission 4080 Lemon Street, 3m Floor P.O. Box 12008 Riverside, CA 92.502-2202 Dear Anne: The Coachella Valley Association of Governments, (CVAG) respectfully requests Riverside County Transportation Commission (ROTC) enter into a Memorandum of Understanding with the California Department of Transportation (Ca!trans) for the repayment of CVAG's CMAQ reimbursement disallowed by the February 2008 incurred cost audit. On July 28, 2008, the Executive Committee of CVAG directed me to prepare a letter requesting RCTC's consideration to enter into a MOU with Ca!trans. The MOU between RCTC and Ca!trans would allow for an alternate payment option to Ca!trans and with RCTC's assistance, would allow CVAG to partially address repayment of the SunLine Services Group (SSG)/SunLine Transit Agency $4,789,522 portion of the $5,189,968 disallowable claimed costs in the May 2007 Ca!trans Audit of SSG/SunLine. The CVAG Executive Committee's action also included an emphasis that RCfC deprogram SunLine projects that are programmed to receive federal funds in the current CMAQ (SAFE 1 LA-LU) cycle. Four projects were awarded to SunLine in the 2007 CMAQ SAFETEA-LU call for projects, totaling $2,810,827. Thank you for your consideration of our request. —Sin sly, v /John M. Wohlmuth Executive Committee C 18 ATTACHMENT 1 73-710 Fren Waring Drive. Suite 200 • Palm Deser8§A 92260 • [760) 346-1127 • FAX [7601 340-6949 1.116/01F2006/PRI 07:09 PM SNARE TRANSIT A pdh/iv. A ... giertey August 7, 2008 PAX No. 760 30-3097 P. 002 SY FAX AND REGULAR.MAlt, Anne Mayer Riverside County Transpottation Commission 4080 Lemon Street, Third:Floor Riverside, CA 92502-2208 Dear Anne: • AfEMOER S DasenHot.SPdogs Rancho Mirage& Indio PasnSprings Palm Desert CoorAela CathodralCily lodiao-wets RivursideCourtly La atlnta The Board of Directors of Suntine Services .Group just met on. Juty 30, 2008 to: receive my report in closed session . concerning . RCTC's involvement in :: the issues arising from the Caltrans:audit of street sweeping: services between CVAG and Sunt.ine :Services °Group. SSG's Board of. Directors; has asfied me to: relate its preference that RCTC not .become Involved in this issue at least at the present time —in .cyder to give CVAG and SSG an opportunity to atternptto. jointly resolve financial Impacts raised by the Cattrans;audit. SSG requests that RCTC refrain from entering into an MQU ieNh Caitrans to pay the audit casts. if needed in the.•future, 'RCTC can :become involved, but CVAAG and SSG have not yet. exploredbetween themselves potential ways of dealing with these issues. We are in the proceseof:setting up.a meeting in ttte near future and appreciate yourunderstanding: to allow us to attempt a joint resolution that will not require RCTC to enter into an MOU with Caltrans. Sincerely, ti C. Mei Ogles General Manager 32.505 Harry Oliver Trail, Thousand Palms, CA 92276 !'h 760.343-3456 Fax 760-343-0576 wwwsurrline.org ATTACHMENT 2 19 89 • • COACHELLA VALLEY ASSOCIATION OF GOVERNMENTS CMAQ SAFETEA LU PROPOSAL RANICINGS October, 2007 Project No. Juris. - Description _ Points Awarded Cost Cumulative Total 1023 C Grade Separations 23 $10,180,000 $10,180000 1002 COR Traffic Signal lnstallation/Intercomrect 20 $1,080,000 $11,260,000 1010 PD Traffic Congestion & Delay Reduction 20 $1,565,700 $12,825700 1003 Indio Traffic Signal Installation/Interconnect 19,5 $78'9,690 $13,615,390 ' 1017 PD . Traf. Con.,Delay Red. & Pedestrian Fac. 18.5 $619,700 $14,235,090 1006 DHS Traffic SignalInstallation/Interconnect 18 $457,610 $14,692,700 1001 COR Traffic Congestion &Delay Reduction 175 $2,000,000 $16,692,700 1018 PA Traffic Signal Installation/Interconnect 17 $752,000 $17,444,700 1012 I'D Traffic Congestion& Delay Reduction 16 $1,100,000 $18,544,700 1024 PS Traffic Signal Installation/Interconnect 16 $1,843,046 $20,387,746 1011 PD Traffic Congestion & Delay Reduction 15 $686,700 $21,074,446 1028 &nine Transportation Demand Management 14 $663,975 $21,738,421 1020 CC Traffic Signal Installation/Intemonnect 14 $223,829 $21,962,250 1013 PD Traffic Signal Installation/Interconnect 13.5 $202,000 $22,164,250 1025 Shine Public Transit -Op. of New Transit Bus Serv. 12.5 $309,855 $22,474,105 1007 LQ Traffic Signal Installation/Interconnect 10 $177,060 $22,651,165 1026 S/line. Public Transit -Purchase of Buses 8.5 $734,799 $23,385,964 1027 S/line Public Transit -Purchase of Buses 8.5 $1,102,198 $24,488,162 1014* PD Bicycle Facilities 6 $3,135,000 $27,623,162 Reg. PM10 Street Sweep. Equip. $2,000,000 $29,623,162 PM10 Proi. PM10 Soil Stabilisation & PM10 Windbreaks - 11 $301,000 - $29,924,162 1016 PD 1005 DHS PM10Paving 9 $314,353 $30,238,515 1021 CC PM10 Soil Stalilization 8 $138,397 $30,376,912 1004 Indio PM10 Vehicle Replacement 7 $233,200 $30,610,112 * Project 1014 CMAQ request not fully funded, $5,135,000 requst. ATTACHMENT 3 9 COACHELLA VALLEY ASSOCIATION OF GOVERNMENTS CMAQ CALL FOR PROJECTS Project # 1014 Agency: CMAQ Request: Project Name: Project Description: Project # 1026 Agency: CMAQ Request Project Name: _ . Project Description: Project# 1026 Agency: CMAQ Request: Project Name: Project Description: Project # 1027 Agency: CMAQ Request: Project Name: Project Description: Project # 1028 Agency: CMAQ Request: Project Name: Project Description: Bicycle Facilities - PARTIAL FUNDING ONLY City of Palm Desert $574354400 FUNDING ONLY $3,135,000 Mid -Valley Bike path ApproX. 6.0 miles of Class 1 bike path - northern City limits between Washington Street and north of Monterey Avenue. Public Transit - Operation of New Transit Bus Service SunLine Transit Agency $309855 Fred W. aring Corridor Express Bus Service Demonstration Project Provide limited express service from the Indio Transfer Location to the Transfer Location on Town Center Way with senrice to the College of the Desert and limited stops along the corridor. Public Transit - Purchase of Buses SunLine Transit Agency $734,799 CNG Bus for the Fred Waring Express Bus Service Purchase Two (2) CNG 40 foot fixed route buses for providing limited express bus service from the Indio Transfer Location to the Town Center Way Transfer Location with limited stops • and service to the College of the Desert. Public Transit - Purchase of Buses SunLine Transit Agency $1,102,198 Low Floor CNG Bus for Comprehensive Operational Analysis (COA) Recommended Service Purchase Three (3) CNG 40 foot fixed route buses that will be used in providing bus service on new routes based on recommendations from the COA. The buses will be deployed on Lines 92 and 93 in the unincorporated communities of Mecca, Oasis, and Thermal. Transportation Demand Management SunLine Transit Agency $663,975 Transfer Hub/Location at SunLine's Head Office in Thousand Palms Develop and construct a transit hub at SunLine's head office in Thousand Palms. ATTACHMENT 4 • 191 ADDITIONAL INFORMATION AGENDA ITEM f Serving the Desert Since 1977 A Public Agency 85845 CB/SM MEMBERS: Dater Hot Epilogs Palm Springy Cathedral City Rancho Mirage Palm Desert Indian Wells La Quinla !mho Coachella A/verskle Coon& November 19, 2008 Cathy Bechtel Project Development Director RCTC 4080 Lemon Street, Third Floor Riverside, CA 92502-2208 tecEll l "! Nov 2 1.2[ IJ TRANSPORTATION COMMISSION Dear Cathy: As follow up to our phone conversation today, I wanted to outline the concems with the RCTC created staff report to the Budget and Implementation Committee dated November 24, 2008 that we discussed. The second paragraph of the staff report has some inconsistencies that may have arisen from an attempt to summarize the long drawn out process of the audit. 1 think that it is important that the following information be corrected: 1. SSG was not formed by SunLine to provide street sweeping. The FTA did not want taxi regulated by SunLine, so SSG was created. 2. Although the CVAG audit cited that there were unsigned agreements and lack of agreement provisions, that issue was raised in the CVAG audit, not in the audit of SSG. In addition, I think that it is important that people know the timeframe of the audit, which covered a period from 1999 to 2004. This will show that this is a clean-up of an old problem. The proposed Line 54 will not go into service in January. SunLine will continue to seek additional funds to fully fund capital projects, including utilizing Prop 1 B for revised projects. Sincerely, C. Mikel Ogles General Manag 32-505 Harry Oliver Trail, Thousand Palms, California 92276 Phone 760-343-3456 Fax 760-343-3845 www.sunline.org • • • RIVERSIDE COUNTY TRANSPORTATION COMMISSION DATE: November 24, 2008 TO: Budget and Implementation Committee FROM: Technical Advisory Committee Grace Alvarez, Staff Analyst Shirley Medina, Programming and Planning Manager THROUGH: Cathy Bechtel, Project Development Director SUBJECT: Transportation Enhancement Application Revision for the Perris Valley Line Greenway Corridor Project TECHNICAL ADVISORY COMMITTEE AND STAFF RECOMMENDATION: This item is for the Committee to: 1) Approve the Transportation Enhancement (TE) Application Revision for the Perris Valley Line (PVL) Greenway Corridor project; and 2) Forward to the Commission for final action. BACKGROUND INFORMATION_ In 2005, the PVL Greenway Corridor project was one of the 18 projects awarded federal Transportation Enhancement (TE) funds from the 2005 TE call for projects. The PVL Greenway Corridor project was approved for $1,113,212 of TE funds. The Commission's Commuter Rail Department proposed the PVL Greenway Corridor project as an effort to improve the surrounding areas of the future commuter rail stations of the PVL and make the stations more pedestrian friendly. The original TE application included landscaping, sidewalks, and fencing along Watkins Drive near the University of California Riverside (UCR) station, Moreno Valley March Field station, and the Downtown Perris Station. As the PVL progresses with preliminary engineering, including the station design plans, it has been determined that the project can be improved by incorporating pedestrian and bicycle access and other amenities at the stations instead of the right-of-way improvements. Moreover, it has been identified that the right of way improvements at both Moreno Valley March Field and at the Perris Downtown stations will be more complicated than previously envisioned. Therefore, Commuter Rail staff is proposing modifying the existing PVL Greenway Corridor Project to reduce the right-of- way improvements from the three locations to only Watkins Drive near the UCR station, and to use the savings from the other two stations right-of-way improvements to expand the pedestrian facilities and amenities at all five of the rail stations, which include Palymrita, UCR, Moreno Valley March Field, Perris, and South Perris. Agenda Item 10 192 The new proposal would retain the right-of-way improvements along 3,000 feet of Watkins Drive near UCR with landscaping, a pedestrian/bike path, and fencing, as well as adding enhanced pedestrian shelters, benches, drinking fountains, information kiosks, pathways, scenic enhancements, bike lockers, landscaping, and signage to all five stations along the PVL. The proposed improvements would be above and beyond the basic station concepts that are proposed in the current Federal Transportation Administration (FTA) approved project cost estimates (no additional cost). The PVL Greenway Corridor project scope of work change is consistent with the requirements of the TE grant program; the TE grant and local match will not be impacted. The anticipated start of construction for the PVL and the Greenway Corridor improvements is FY 2009/10. The scope of work change was unanimously approved by the Technical Advisory Committee on October 20, 2008. Financial Information In Fiscal Year Budget: N/A Year: FY 2009/10 Amount: N/A Source of Funds: Federal Transportation Enhancement Funds Budget Ad ustment: N/A GLA No.: N/A Fiscal Procedures Approved: \Pyudt Date: 1 1 /14/2008 Attachment: Revised TE Application Agenda Item 10 • 193 • Transportation Enhancement (TE) Application (PSR Equivalent) TE funds are federal funds and must follow federal funding guidelines and environmental (NEPA) processes. All projects must have an approved eligible application prior to programming. PART ONE: GENERAL PROJECT INFORMATION _X_RTIP TE ITIP TE SHOPP TE PROJECT TITLE: Greenway Corridor Project for the Perris Valley Line IMPLEMENTING AGENCY Administrator/person with day- to-day responsibility for implementing project (Name, Nle, agency, address, phone, fax, email) Sheldon Peterson Rail Manager Riverside County Transportation Commission 4080 Lemon St. 3`d Floor Riverside, CA 92502 (951) 787-7928 Fax (951) 787-7920 veterson@rctc.org (Round dollars to nearest thousands) TE FUNDS REQUESTED Required Local Match TOTAL TE PROJECT COST $ 1,113,000 $ 1,835,000 $ 2,948.000 ❑ TE is a stand-alone project. x TE is part of a larger project. lillication Jan. 2005 Person who can answer questions about this application (Name, title, phone, fax, email) Sheldon Peterson Rail Manager (951) 787-7928 Fax (951) 787-7920 soeterson@rctc.org PARTNER (S) (Name, title, agency, address, phone, fax) IF TE IS AN ENHANCEMENT TO A LARGER PROJECT, DESCRIBE LARGER PROJECT (if larger project is programmed, provide PPNO, EA, Project Title; if not currently programmed, describe the project) FTACML-6054(020); EA: 9245320 Perris Valley Line — Reconstruct and Upgrade San Jacinto Branch Line for rail passenger service (Riverside to Perris) Total Project Cost $ 168,000,000.00 (As submitted in FTA document) PROJECT SCOPE OF PROPOSED TRANSPORTATION ENHANCEMENT ACTIVITIES (Describe the project's location, limits of work, size, etc. Not the justification or benefits). The Greenway Corridor project for the Perris Valley Line (PVL) seeks to construct facilities for pedestrians and bicycles, aesthetic landscape and other scenic improvements at the five proposed train stations and a portion of the San Jacinto Branch Line (SJBL) corridor. The objective is to provide enhancements along the SJBL rail corridor by adding station pedestrian and bicycle amenities to stations and providing decorative trees, shrubs and walkways along a portion of the right of way. The section identified for scenic improvement totals 3,000 ft and is defined as follows: Watkins Drive (3,000 ft) Spruce St to Valencia Hill Dr in Riverside Detailed description of Landscaping Improvements to be funded by Transportation Enhancement (TE) Grants: • 1 Medium tree every 10 feet • 10 foot wide landscaping area • Half of landscaping is ground cover, half is shrubs • Add bike/pedestrian path along one side for entire length (Class 1) • Add 6' tall chain link fence with vinyl slats along Watkins segment to screen tracks • or add 6' tall decorative steel bar fencing for same segment Detailed description of Infrastructure Improvements to be funded by Transportation Enhancement (TE) Grants: • Themed Pedestrian Shelters • Themed Bus Benches and Waiting areas • Drinking Fountains Page 1 194 • Trash receptacles • Route Map Displays/Informational Kiosks • Comprehensive "transit lifestyle" information kiosks, • Paved pedestrian walkways and linkages • Scenic enhancements to project and interface with other phases • Ornamental fencing • Bike lockers/racks • Landscaping, raised planters and associated irrigation system • Extensive site landscaping • Public Art/Historic Education • drought -resistant plantings • Signage and directional arrows • Incremental costs for custom designed solar -powered lighting fixtures • `Wi-Fi" internet hot spots for security and transit information • Themed decorative lighting NEED AND PURPOSE (Describe how project above is beyond a standard transportation project) The current state of the SJBL rail corridor, is desolate and an eyesore for the local communities. The Greenway Corridor Project will take a portion near the UCR Station and transform it into a green corridor that will complement the otherwise well maintained streets where the rail corridor parallels it. Additionally, with five new stations planned along the PVL Corridor amenities are needed to accommodate projected pedestrian and bicycle patronage. Shelters will provide protection from the sun and rain for those who walk, bicycle or utilize connecting transit to access the station. Benches will accommodate those awaiting their connections, providing comfort and convenience for those who do not drive and bike lockers and racks will further promote the increasing numbers of commuters utilizing this healthy and green commuting altemative. These enhancements will increase access options to stations and functionality, thereby increasing riders for the PVL service and aide in community acceptance of the PVL service operating in neighborhoods. This beautification and facility enhancement project will involve the local jurisdiction and community working with RCTC on the design and maintenance of the landscape and scenic improvements to provide for safe operation of the railroad corridor while reflecting the characteristics and culture of the community. The current use of the site is railroad right of way. As such the, only requirement is to maintain the property and abate any weeds. With the new stations constructed as part of the PVL project, there will be some improvements required, but by no means will the project be required to landscape portions of the rail corridor outside of the station areas. This project seeks improvements both inside and outside the station areas which are not standard mitigation nor are they in lieu of standard mitigation requirements. RELATIONSHIP (TE projects must have a relationship to surface transportation; describe relation to surface transportation) The Perris Valley Line project seeks to extend Metrolink commuter rail service from Riverside to Perris via Moreno Valley along the SJBL rail corridor, extending the existing Metrolink 91 Line, which is part of the Southern California Regional Rail Authority (SCRRA). The PVL project anticipates attracting 4,000 daily trips. The Greenway Corridor Project will directly improve the functionality, transportation aesthetics and scenic value of the SJBL rail corridor and its stations. These enhancements will improve access points along the route and attract additional riders to the PVL service. The Project has been incorporated into the approved 2008-2011 Riverside County Transportation Commission Commuter Rail Short Range Transit Plan. It is shown in the Riverside County Transportation Commission (RCTC) Sub -Regional Transportation Plan, and also shown in the Southern California Association of Government (SCAG) Long Range Transportation Plan. The project is supported and authorized by the following governmental agencies and listed in their Local, Sub -regional, Regional and State Transportation Plans and Programs: • Riverside County Transportation Commission Commuter Rail Short Range Transit Plan (SRTP) • Riverside County Transportation Commission (RCTC) Transportation Improvement Plan (TIP) • Southern California Association of Government (SCAG) Regional Transportation Plan (RTP) • Southern California Association of Government (SCAG) Regional Transportation Improvement Program (RTIP) TE Application Jan. 2005 CONFORMANCE (Describe conformance with Route Concept Report or Transportation Corridor Report and District System Management Plan - !TIP projects only) N/A • • Page 195 CONTEXT SENSITIVE SOLUTIONS (Describe how project reflects Director's policy - ITIP projects only) N/A ALTERNATIVES CONSIDERED N/A WHICH OF THE 12 TE CATEGORIES DOES THE PROJECT ENCOMPASS? (May be more than one.) http://www.dot.ca.gov/hcaransEnhActirransEnact.htm Item #1. Provision of facilities for pedestrians and bicycles. Item #5. Landscaping and other scenic beautifications. • OSOlaa cation 411121005 PROJECT LOCATION MAPS (Provide Location Map of project in State/Region and Area Specific Map) Map of Southern California showin+ location of Perris Valley Line L.9nc9aier r- 9f119r9 �ne`�� Venslra' Slrni Val t Lios Anse .., + .Desert Slate'ParEscondidoI .". El Cajon Cali iatri El Centro Teoata.: "' [7..M8Xic91i rewley" �.NG7Mi9le ..Yu .. Sanlu;. Guadalape Victoria 1 e Page 3 196 Map showing the Perris Valley Line and Stations TE Applicalion Jan. 2005 Map showing the Perris Valley Line Greenway Corridor Location • • Page 197 111 PART TWO: FUNDING pared by: Sheldon Peterson Title: Rail Manager Agency: Riverside County Transportation Commission Phone: 951-787-7928 FAX: 951-787-7920 PROJECT COMPONENT COSTS (round to nearest $1,000s) RTIP ITIP SHOPP • E&P (PA&ED) $ $ $ • PS&E $ $ $ • Right of Way Capital $ $ $ • Right of Way Support* $ $ $ • Construction Support* $ $ $ • Construction Capital $1,113 $ $ Proposed year of Construction 10/09 (MM/YY) TOTAL PROJECT COSTS $2,948 *Right of way Support and Construction Support are for Caltrans implemented projects only PRELIMINARY ITEM ESTIMATE - CONSTRUCTION CONTRACT ITEMS DESCRIPTION UNIT QUANTITY UNIT PRICE AMOUNT ITEM 1 2 3 i4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 24" TREE 36" TREE PALM TREE (25' TALL) SHRUBS GROUND COVER PATH/PUBLIC ART FENCE THEMED PEDESTRIAN SHELTERS THEMED BUS BENCHES AND WAITING AREAS DRINKING FOUNTAINS TRASH RECEPTACLES ROUTE MAP DISPLAYS/INFORMATIONAL KIOSKS "TRANSIT LIFESTYLE" INFORMATION KIOSKS STAMPED COLORED CONCRETE SCENIC ENHANCEMENTS (STATIC AIRCRAFT DISPLAY) ORNAMENTAL FENCING BIKE LOCKERS/RACKS LANDSCAPING, RAISED PLANTERS AND IRRIGATION EXTENSIVE SITE LANDSCAPING PUBLIC ART/HISTORIC EDUCATION DROUGHT -RESISTANT PLANTINGS SIGNAGE AND DIRECTIONAL ARROWS SOLAR -POWERED LIGHTING FIXTURES "WI -Fr INTERNET HOT SPOTS THEMED DECORATIVE LIGHTING CONTINGENCY (25%) TOTAL CONSTRUCTION CONTRACT ITEMS EACH 1,000 $300.00 $300,000.00 EACH 300 $850.00 $255,000.00 EACH 80 $1,300.00 $104,000.00 SF 60,500 $1.80 $108,900.00 SF 60,500 $1.25 $75,625.00 SY 9,200 $45.00 $414,000.00 LF 3,000 $50.00 $150,000.00 EACH 5 $50,000.00 $250,000.00 EACH 25 $600.00 $15,000.00 EACH 5 $1,800.00 $9,000.00 EACH 25 $200.00 $5,000.00 EACH 5 $2,000.00 $10,000.00 EACH 5 $10,000.00 $50,000.00 SF 9,000 $7.50 $67,500.00 EACH 1 $50,000.00 $50,000.00 LF 2,500 $85.00 $212,500.00 EACH 25 $1,600.00 $40,000.00 EACH 30 $562.50 $16,875.00 SF 10,000 $2.00 $20,000.00 EACH 2 $25,000.00 $50,000.00 SF 10,000 $2.00 $20,000.00 EACH 50 $200.00 $10,000.00 EACH 50 $1,500.00 $75,000.00 EACH 5 $2,500.00 $12,500.00 EACH 50 $750.00 $37,500.00 $589,600.00 $2,948,000.00 J . 5 Page 5 198 MAINTENANCE (The enhancement must be maintained in a functional and operational manner as its intended purpose for the expected life cycle for the type of project. If it is not maintained in such a manner, reimbursement of all or a portion of the enhancement funds may be required). Who will maintain? RCTC has contractors for landscape maintenance and station cleaning for its train stations and will expand the contract to inclu these areas. What is the source of maintenance funds? RCTC will pay for maintenance and cleaning with LTF funds. If project is within Ca!trans right of way, must be signed by Deputy District Director, Maintenance DDD Maintenance: Date: TE Application Jan. 2005 Page 199 PART THREE: ASSURANCES • This page must be signed for the project to be considered for funding. Project Implementing Agency possesses legal authority to nominate this transportation enhancement and to finance, acquire, and construct the proposed project; and by formal action (e.g., a resolution) the Implementing Agency's governing body authorizes the nomination of the transportation enhancement, including all understanding and assurances contained therein, and authorizes the person identified as the official representative of the Implementing Agency to act in connection with the nomination and to provide such additional information as may be required. Project Implementing Agency will maintain and operate the property acquired, developed, rehabilitated, or restored for the life of the resultant facility(ies) or activity. With the approval of the Califomia Department of Transportation, the Implementing Agency or its successors in interest in the property may transfer the responsibility to maintain and operate the property. Project Implementing Agency will give the California Department of Transportation's representative access to and the right to examine all records, books, papers, or documents related to the transportation enhancement activity. Project Implementing Agency will comply where applicable with provisions of the California Environmental Quality Act, the National Environmental Policy Act, the Americans with Disabilities Act, the Secretary of the Interiors Standards and Guidelines for Archaeology and Historic Preservation, CTC Guidelines, FHWA Transportation Enhancement Guidance and any other federal, state, and/or local laws, rules and/or regulations. If TE funds or projects are used for other than the intended enhancement purposes as defined by federal or state guidelines, the implementing agency may be required to remit all state and federal enhancement funds back to the state. I certify that the information contained in this transportation enhancement activity application, including required attachments, is accurate and that I have read and understand the important information and agree to the assurances on this form. • Signed Date (TE Administering Agency Representative) Uon Ok5 Printed (Name and Title) Administering Agency Upon receiving an eligibility determination, a Project Nomination Sheet must be submitted to the District for programming. Page 7 200 • RIVERSIDE COUNTY TRANSPORTATION COMMISSION DATE: November 24, 2008 TO: Budget and Implementation Committee FROM: Lisa DaSilva, Capital Projects Manager Mark Massman, Bechtel Project Manager Robert Wunderlich, Bechtel Project Coordinator THROUGH: Marlin Feenstra, Project Delivery Director SUBJECT: Agreement with URS Corporation for the Development of Plans, Specifications, and Cost Estimate for the Interstate 215 Widening Project from Murrieta Hot Springs Road to Scott Road, North of the City of Murrieta STAFF RECOMMENDATION: This item is for the Committee to: 1) Award Agreement No. 09-31-045-00 to URS Corporation to perform final engineering services and prepare plans, specifications, and cost estimates (PS&E) for the 1-215 widening project from Murrieta Hot Springs Road to Scott Road, north of the city of Murrieta, based on the attached project scope and cost for the base amount of $3,372,139 plus a contingency amount of $377,861 to cover potential changes in scope for a total not to exceed amount of $3.75 million; 2) Authorize the Chair, pursuant to legal counsel review, to execute the agreement on behalf of the Commission; 3) Authorize the Executive Director or designee to approve contingency work as may be required for the project; 4) Authorize the Executive Director the option to request a proposal from URS Corporation to provide PS&E services for the 1-215 widening project from Scott Road to Nuevo Road in the city of Perris, if URS Corporation's performance is acceptable in completing the PS&E work for the 1-215 widening project from Murrieta Hot Springs Road to Scott Road, and to bring back a recommendation to the Commission for PS&E contract award; and 5) Forward to the Commission for final action. BACKGROUND INFORMATION: At its July 11, 2007 meeting, the Commission awarded Agreement No. 08-31-006-00 to Post Buckley, Schuh and Jerrigan, Inc. (PBS&J) to provide Agenda Item 11 201 preliminary engineering services, for the preparation of Caltrans project reports and environmental documents ('PR/ED) for the proposed improvements to the 1-215 corridor, from the 1-215/1-15 interchange to Nuevo Road in the city of Perris. The 1-215 widening project from Murrieta Hot Springs Road to Scott Road is partially funded with Corridor Mobility Improvement Account (CMIA) funding, which requires that the project must be awarded for construction prior to 2011. This project is part of a larger segment of the 1-215 widening project from the 1-15/1-215 interchange to Nuevo Road. To expedite the completion of the CMIA funded 1-215 project from Murrieta Hot Springs Road to Scott Road, the 1-215 project from Scott Road to Nuevo Road is being executed as a separate project. PBS&J is providing separate PR/ED for each project. The PR/ED for the 1-215 project from Murrieta Hot Springs Road to Scott Road is proceeding on schedule and is scheduled to be completed by December 1, 2008. Selection Process At its October 8, 2008 meeting, the Commission approved a ranked list of consultant firms for placement on the on -call list for engineering and environmental services for Measure A highway projects. The Commission also authorized staff to enter into negotiations with the firms on the list as new consultant services are required, with the condition that final contracts will be individually returned to the Commission for approval. The first ranked firm on the approved on -call list is URS Corporation. Commission staff requested that URS Corporation submit a scope, cost, and schedule proposal for the PS&E work for the 1-215 widening project from Murrieta Hot Springs Road to Scott Road. Staff has reviewed the scope of work and cost proposal and has completed negotiations with URS Corporation. The final scope, cost, and schedule documents are attached. The PS&E schedule duration is 18 months. Staff recommends that Agreement No. 09-31-045-00 be awarded to URS Corporation to perform final engineering services and prepare PS&E for the 1-215 widening project from Murrieta Hot Springs Road to Scott Road, based on the attached project scope and cost, for the base amount of $3,372,139 plus a contingency amount of $377,861 to cover potential changes in scope for a total not to exceed amount of $3.75 million. Staff further recommends that the Commission authorize the Executive Director the option to request a proposal from URS Corporation to provide PS&E for the 1-215 widening project from Scott Road to Nuevo Road in the city of Perris and to bring back a recommendation to the Commission for PS&E contract award, should URS Agenda Item 11 • • 202 • • Corporation's performance be acceptable in completing the PS&E work for the 1-215 widening project from Murrieta Hot Springs Road to Scott Road. While a budget amendment is not required for this contract, staff intends to transfer $1.5 million from the preliminary engineering expenditures included in the FY 2008/09 budget for this project to final design expenditures. Financial Information In Fiscal Year Budget: Yes FY 2008/09 $1,500,000 N/A Year: FY 2009/10 Amount: $2,250,000 Source of Funds: STIP-RIP & FY 2009/2010 Measure A Budget Ad Yes (commercial paper) ustment: N/A GLA No.: 262 31 81102 P3022 $1,500,000 262 31 81101 P3022 < $1,500,000> Fiscal Procedures Approved: �jte., Date: 11/14/2008 Attachments: 1) Scope of Work 2) Cost Proposal 3) PS&E Schedule Agenda Item 11 203 EXHIBIT A PS&E SCOPE OF WORN I-215 WIDENING PROJECT FROM MURRIETA HOT SPRINGS ROAD TO SCOTT ROAD ADD ONE MIXED FLOW LANE IN EACH DIRECTION RIVERSIDE COUNTY, CALIFORNIA PROJECT OF161 Prepared for Riverside County Transportation Commission 4080 Lemon Street, 3rd Floor Riverside, Califomia 92501 November 2008 Prepared by URS URS Corporation 2020 East First Street, Suite 400 Santa Ana, CA 92705 (714)835-6886 Fax:(714)433-7701 204 Provide Plans, Specifications and Estimates For the I-215 from Murrieta Hot Springs Road to Scott Road Widening Project TABLE OF CONTENTS SECTION PAGE 1. PROJECT DESCRIPTION AND ASSUMPTIONS 1 2. PROJECT SCOPE 2 3. NON-STANDARD MANDATORY AND ADVISORY DESIGN FEATURES 3 4. ASSUMPTIONS IN ADDITION TO THE PROJECT DESCRIPTION 4 FIELD INVESTIGATIONS' ERROR! BOOKMARK NOT DEFINED. GEOTECHNICAL ENGINEERING DESIGN SERVICES ERROR! BOOKMARK NOT DEFINED. PROJECT DELIVERY: 6 GENERAL REQUIREMENT: 6 DATA COLLECTION- 6 57. DETAILED SCOPE OF WORK 7 5.1 100. PROJECT MANAGEMENT 7 5.2 185 PLANS, SPECIFICATIONS, & ESTIMATE (PS&E) AND CONTRACT SUPPORT 9 5.3 230 ROADWAY PLANS 13 5.4 240 STRUCTURES PS&E ELEMENTS 19 5.5 250-255 FINAL STRUCTURES AND ROADWAY PS&E PACKAGE 22 5.6 265 CONTRACT AWARD SUPPORT 25 5.7 270 CONSTRUCTION SUPPORT 25 205 Provide Plans, Specifications and Estimates For the I-215 from Murrieta Hot Springs Road to Scott Road Widening Project 1. PROJECT DESCRIPTION AND ASSUMPTIONS The following scope of work is our planned effort to prepare the Plans Specifications and Cost Estimate (PS&E) for the addition of one Mixed Flow (MF) lane in each direction between Murrieta Hot Springs Road and Scott Road (Caltrans Project EA OF161) (the Project). The California Department of Transportation (Caltrans) Work Breakdown Structure (WBS) is the basis for most project tasks and will be used to link the scope, cost, and schedule components of the work effort. The work will be performed using the current Caltrans guidance provided in documentation such as the PDPM, HDM, CADD Manual, RTL Guide, PS&E Guide, Bridge Design documents, Standard Plans, Standard Specifications, TMP Guide, etc. It is noted that, due to the nature of the project scope, that the Client has requested that several Sheet types be combined on a single set of sheets. These combinations are noted in the following scope of services. The activities listed in this scope of work are intended to be delivered to support the 30%, 60%, 90%, and 100% reviews that are typically used by Caltrans to review Agency lead PS&E packages. The delivery approach is summarized in Table 1, Deliverables. Table 1. Deliverables W63 230.05.05 Deliverable Title Sheep ,Sheet Count Milestone Delivery Points 30% 604 x ;90% x .100% x 230.05.10 Typical Cross Sections x x x x 230.05.15 Key Map and Index x x x x 230.05.20 Layouts, Profiles, Superelevation, and utility x x x x 230.05.30 Construction Details x x x 230.05.40 Summary of Quantity Sheets x x x 230.05.55 Select Standard Plans x x 230.05.60 Stage Construction Traffic Handling and Detour Plans x x x 230.05.65 Water Pollution Control Plans x x x 230.15.05 Signing and Pavement Delineation Plans and Details x x x 230.15.10 Construction Area Signs x x x 230.15.15 Keller Lighting Illumination x x x 230.15.20 MHS Ramp Metering Plans x x x 230.25.05 Storm Water Pollution Prevention Plan (SWPPP) x x x 230.30 Drama. a Plans . radm. • lans Dram . e Profiles and - µ, wJ j j t x x jj 4 x 230.35 Standard Special Provisions (SSPs) z x x 230.40 240.50 Quantities & Cost Estimate $ya q �yh`SFt 3.�.s`,ly &?' f.t di'L.•1f`�.i}, s a °tt _ .1:,.i v �. x �,..ti:. x r .. x .n 4 .., Draft Structure PS&E x 240.55 Foundation Plan x x 240.75 General Plan (Type Selection) x x x 240.85 Structure Plans x x 240.90 Structures Cost Estimate and Spec Provisions x x ° kS.._.. n..sr a; 185.20.10 Hydrology and Final Hydraulic Reports Draft Final 185.20.15 Geotechnical Design Report Draft Final 185.20.20 Pavement Design Report Draft Final 185.20.25 Materials Report & Structural Section Recommendation Draft Final 230.20 Traffic Management Plan (TMP) Draft Final 230.60.05 Storm Water Data Report Draft Final 230.65 Resource Agency Permits Final 235.10 Site Investigation for Hazardous Waste 235.10 ADL Report 240.80 Foundation Report Draft Final pp 250 Final Structures PS&E x 255 Final Roadway PS&E x 260 Environmental Certification x 1 206 Provide Plans, Specifications and Estimates For the I-215 from Murrieta Hot Springs Road to Scott Road Widening Project 2. PROJECT SCOPE The PS&E Estimate is based on the following elements for project OF161 (from Murrieta Hot Springs Road to Scott Road): • The existing segment of I-215, from approximately 950 feet south of Murrieta Hot Springs Road to Scott Road, will be widened from four MF lanes (two lanes in each direction) to six MF lanes (three lanes in each direction). The additional MF lane in each direction will be constructed in the existing median. All six lanes will be 12 feet in width. Both directions of flow (northbound and southbound) will typically have ten -foot wide inside and outside shoulders. The shoulders will be reduced to an eight foot shoulder at bridge locations (see non standard mandatory and advisory design features discussion below for details). • Drop lanes at both the north and south ends of the project will be necessary in order to transition from the proposed three lanes to the existing two lanes at each end of the project. The lanes will transition away from the median to tie into the existing facility. On the north end, the outside lane will be aligned with the existing Scott Road northbound off -ramp. On the south end, the outside lane will be aligned with the existing Murrieta Hot Springs Road southbound off -ramp. • The existing lanes of 1-215 within the project limits, including the shoulders, will be overlaid with HMA pavement. • In areas where there is an existing crown on the roadway, the number one lane (lane closest to the median) will be re -contoured to provide a consistent cross fall from the inside to the outside. This extends along northbound I-215 from approximately stations 89+00 to 121 +00 and 247+00 to 270+00. In the southbound direction these areas will extend from approximately stations 89+00 to 102+00 and 246+00 to 281+00. • Best Management Practice (BMP) features that include modifications to the existing, or the installation of new water quality control features, will also be included as part of the project at select locations where identified benefits outweigh impacts. • At the existing Keller Road undercrossing (UC) the bridges will be widened into the median to support the new MF lanes. • A concrete center median barrier will be installed. • Drainage inlets within the median will be abandoned and interfering portions will be removed. The roadside swales (BMPs) will be utilized to convey both stormwater quality flows and peak flows, and existing flow patterns will not be altered. In the limited areas where superelevated sections will be applicable, Department requirements for the flow, spread and inlet spacing will be followed. These areas are limited to three locations just north of Clinton Keith Road. 2 • • 207 _tes For the I-215 from Murrieta Hot Springs Road to Scott Road Widening Project 3. NON-STANDARD MANDATORY AND ADVISORY DESIGN FEATURES At the time of the Draft Project Report (DPR) there are two advisory nonstandard features associated with this alternative that are described in Table 2. These nonstandard features are being documented for approval in a Fact Sheet for Exceptions to Advisory Design Standards. Table 2. Advisory Design Standards Minimum grades HDM Section 204.3 Minimum median width HDM Section 305. 1(1)(a) 0.3% 36 feet From "A" Station 70+25 to Station 72+75: 0.29% From "A" Station 258+00 to Station 273+00: 0.125% Throughout project limits: 22 feet Project will maintain existing vertical alignment Project scope involves inside widening only and no outside widenin. At the time of the DPR there are six mandatory nonstandard features associated with this alternative that are described in Table 3. These nonstandard features are being documented for approval in a Fact Sheet for Exceptions to Mandatory Design Standards. Table 3. Mandatory Design Exceptions f: ,.5 d . tid t4i>XiD s' n` Excepttun • •. y Sfa4►darrl ��' ?, A� 2 £ � t'Fdn i ei � � +r �� �. r s k .. �tY t^ l� �f2; TR'�'$11� fDfy.@i'e�ri'� D, Horizontal Stopping Sight Distance HDM Section 201.1 930' For R=6037', "A" Sta. 148+36.84 to Sta. 183+51.54 southbound, clearance = 10' and will not meet SSD For R=2963', "A" Sta. 208+70.92 to Sta. 224+64.86 northbound, clearance = 10' and will not meet SSD Project will maintain existing horizontal alignment and includes inside widening only Curve Radius HDM Section 203.2 3900' R=2963', "A" Sta. 208+70.92 to Sta. 224+64.86 Project will maintain existing horizontal alignment Shoulder Width HDM Section 302.1 10 7'-1" to 10' left shoulders at Murrieta Hot Springs Road, Los Alamos Road, Clinton Keith Road, and Scott Road OCs; 9'-3" right shoulders at Keller Road UC Project scope involves inside widening only and no outside widening Horizontal clearances HDM Section 309. 1(3)(a) Equal to standard shoulder width, = 10' T-1" to 10' to concrete barrier protecting median bridge columns at Murrieta Hot Springs Road, Los Alamos Road, Clinton Keith Road, and Scott Road OCs, 9'-3" to right bridge railings at Keller Road UC Project scope involves inside widening only and no outside widening Vertical clearances for local facilities HDM Section 309.2(1)(c) 15' over traveled way 14'-11" over Keller Road (at Keller Road UC) Project scope does not include bridge replacement for local street improvements 3 208 Provide Plans, Specifications and Estimates For the I-215 from Murrieta Hot Springs Road to Scott Road Widening Project 4. ASSUMPTIONS IN ADDITION TO THE PROJECT DESCRIPTION The following additional assumptions have been made with regard to the proposed project. 1. The Duration of the project to deliver the completed PS&E package is assumed to be 18 months. One PDT meeting and one status meeting between PDT meetings is provided within the Project Management budget for each of the 18 months of service provided. Support for technical meetings will be provided as required. 2. GAD and Fact Sheet (Advisory and Mandatory) approvals and any needed modifications will be addressed under the PANED scope of work. The scope of work included in this estimate assumes that the 1st draft GAD and Fact Sheet submittal will remain the project approach and that the GAD will be approved no later than two months after NTP for the PS&E. 3. All roadway improvements will be constructed within the existing median. 4. There are no noise walls or retaining walls required. 5. No utility work or right of way acquisition is anticipated under the Proposed Build Alternative and no utility coordination or separate utility sheets will be required. Utility locations will be shown on the layout sheets. At this time we believe that the utilities are sufficiently removed from the work area such that potholing should not be required. 6. The Keller Road Undercrossing is the only structure to be modified and the only modification is a widening of the structure to fill the current gap between the left and right bridges. It is further assumed that seismic retrofit will not be required for the existing structure. 7. There are no modifications or improvements of the ramps and structures for the interchanges within the project limits. 8. Additional typical cross sections will only be required where changes to the structural section occur. 9. It is assumed that the Project Report (PR) and Environmental Document (ED) will be approved by December 2008 and that no major modifications will be required during PS&E. 10. The BMP approach discussed and shown in the set of project documentation approved with the April DPR and May IS/MND will be the approved BMP approach. 11. The existing drainage system will be maintained with the exception of the removal of any drainage systems in the median. 12. No planting, landscape or irrigation plans will be required_ 13. No material sites will be required for the project. 4 • 209 Provide Plans, Specifications and Estimates For the I-215 from Murrieta Hot Springs Road to Scott Road Widening Project 14. No electrical modifications or improvements for signals, ramp meters, loops, etc. will be required with the exception that pedestrian lighting is assumed to be required for the Keller Road UC after it is widened, and ramp meters are proposed at Murrieta Hot Springs Road. 15. The current mapping developed under the current contract will be adequate. 16. Plans will be in English units. 17. There are no hazardous waste issues that will have to be addressed or worked around. 18. No costs are currently included for any permit fees or utility or agency processing fees. 19. Any costs requested by the utility companies for their involvement with the project or utility location work requested to support the project is unknown and not included in this estimate. 20. US Fish and Wildlife approval will be obtained as part of the PA&ED activities and no additional work is anticipated. 21. Allowable period for lane and shoulder closures (for drilling operations) on I-215 mainline is 9:00 am to 3:00 pm. 22. This scope and cost assumes that, if required, no difficulties in identifying appropriate mitigation sites and/or banks will occur during the permit processing. 23. No Consultation for special status species will be required. 24. Any wetland impacts identified will remain at less than 0.5-acre and that a Nationwide 404 permit will be appropriate. 25. The jurisdictional waters will remain primarily as shown in the Natural Environment Study (NES) that was prepared for the proposed project and those discrepancies will result in a change in acreage of no more than ten percent for federal and state waters. 26. Based upon the information in the NES, it is assumed that the project would be processed under the USACE Nationwide Permit Program (NWP). This approach is expected to involve authorization of NWP 14 — Linear Transportation Projects. NWP 14 authorizes the improvement of linear transportation projects, provided that the impacts to jurisdictional waters do not exceed 0.5-acre. 27. If project impacts to jurisdictional waters exceed the USACE NWP thresholds, or if the District Engineer determines that the project would result in a significant adverse impact to the aquatic environment, then an Individual Permit (1P) would be required. Preparation of an IP is not included in this scope of work. 28. InRoads cross sections, as generated by the program, will be provided for the Resident Engineer File. These cross sections will be cut every 50 feet and will show a rough OG line and proposed surface. It is assumed that no improvements or betterments to the output files of the InRoads generated cross sections will be required. URS 5 210 Provide Plans, Specifications and Estimates For the I-215 from Murrieta Hot Springs Road to Scott Road Widening Project 29. It is assumed that any grading information can be shown on the drainage sheets and that separate grading sheets will not be required. 30. Stage construction and traffic handling can be combined and can be shown with one set of layout sheets with appropriate typical sections. 31. It is assumed that the roadside signs, signing and striping can be shown on the pavement delineation sheets. 32. Ramp meters will be required at the Murrieta Hot Springs Road On Ramps (4 locations). Two electrical sheets will be assumed for each location required. 33. No RCTC bid period or construction support is assumed with this scope of work. 34. RCTC will provide a clear description and project/property (i.e., study area) boundaries. The Project "Study Area" includes no more than 300-acres. 35. If possible, RCTC will provide a conceptual site plan on an aerial base that is geographically referenced. 36. RCTC will provide authorization and assist URS in arranging access for site reconnaissance, if necessary. 37. This scope does not include any formal Federal or California Endangered Species Act consultation or special status species focused/protocol level surveys. 38. This scope does not include creation of a compensatory mitigation plan for the Project. 39. If needed, RCTC can provide a current National Pollution Discharge Elimination System Permit and Storm Water Pollution Prevention Plan that details water quality management measures that ensure that authorized work does not result in water quality degradation. PROJECT DELIVERY: The proposed schedule is attached as Exhibit X and includes a 16 month duration for project completion. GENERAL REQUIREMENT: The consultant is expected to prepare all reports, studies and plans to meet all requirements of all oversight agencies, including, but not limited to Caltrans. RCTC staff will provide overall project coordination, and will handle administrative and policy matters. Caltrans and the County of Riverside will provide oversight, guidance and interpretation on matters relating to State, County and City policies and regulations. DATA COL,S.C1 ION: The project will involve the review and assimilation of a large amount of existing data, and the generation of new data. The consultant will determine what data sources are necessary to gather, URS 6 211 Provide Plans, Specifications and Estimates For the I-215 from Murrieta Hot Springs Road to Scott Road Widening Project and by what date and to prioritize the gathering of that data. RCTC expects that the consultant will make the best use of existing data to minimize waste and duplication of work efforts. 40. DETAILED SCOPE OF WORK This section provides our assessment of the work tasks outlined in the Statement of Work and illustrates our understanding of the relationship between the work task items and the role the individual tasks play with respect to achieving the projects goals, meeting the client's expectations, and the methodology proposed for accomplishing the work. No tasks have been deleted from the Statement of Work provided by RCTC. In addition, where any "Guidance" has been identified, these documents will be followed in the performance of our work. 5.1 100. PROJECT MANAGEMENT 100.15.05 PROJECT INITIATION The Project Initiation activities will be performed under this activity. This will be a follow-on to the previous contract to prepare the PANED for the Project. The team members will be assembled and briefed on the project goals and objectives and the work plan will be fine tuned. 100.15.10 PROJECT MANAGEMENT EXECUTION AND CONTROL This process includes coordinating people and other resources to carry out the plan, and ensuring that the PS&E component objectives are being met by monitoring progress and taking corrective action, when necessary. In addition, this activity will address the planning of and attendance at the monthly Project Development Team (PDT) meetings, trend meetings, technical meetings, and agency coordination meetings. The Consultant will maintain ongoing liaison with the RCTC Project Manager and other affected agencies to promote effective coordination during the course of project development. The Consultant will hold a kick-off meeting with RCTC to confirm the project scope, establish the lines of communications, and set a schedule for project coordination meetings and technical reviews. The kick-off meeting will address the start-up activities to initiate the elements of work. Eighteen (18) monthly PDT meetings will be held to review progress of the project development and to resolve any issues and concerns for Project OF161. In addition to the PDT meetings, eighteen (18) trend meetings are assumed to cover the duration of the project. Additional coordination meetings with RCTC and other representatives from affected agencies will be held throughout the 18 months. The Consultant will prepare a meeting agenda and minutes for each significant meeting and have these available for review within five (5) working days following the meeting. The Consultant will ensure that all work products conform to all applicable standards and policies. The Consultant will prepare and monitor the project budget and schedule. Monthly progress reports with an updated Critical Path Method (CPM) schedule will be prepared. This task also includes the oversight and monitoring of the subconsultants included in the contract as an extension of the URS staff. 7 212 Provide Plans, Specifications and Estimates For the I-215 from Murrieta Hot Springs Road to Scott Road Widening Project SUBTASKS: • Status of the project including reporting work results and updating project information. This task includes updating and revising the work plan during PS&E component execution. • Communication and distribution of project records and information including responses to all internal and external requests for information about the project. ■ Performing Quality Assurance/Quality Control (QA/QC) • Executing Quality Management Plan ■ Executing Communication Management Plan ■ Monitoring Risk Management Plan ■ Executing Change Control as required ■ Subconsultant Administration Deliverables: ■ Project records, using Caltrans Uniform File System ■ Preparation of meeting agenda ■ Preparation of meeting minutes • Project management for 18 months for Project OF1 61 ■ CPM master schedule ■ Monthly schedule updates and progress reports • Monthly invoices 100.15.12 PROJECT MEETINGS This task includes support for the Project Development Team meetings, the Project Status Meetings, and Technical Meetings up to the funding levels provided. Deliverables: • Up to 18 PDT meetings along with agenda, meeting minutes and support • Up to 18 Project status meetings along with agenda, meeting minutes and support ■ Technical meetings as required 100.15.15 PROJECT CLOSEOUT This task includes the process of formally bringing the PS&E component to an end. ■ Finalize any open action items ■ Closeout project filing system • Sponsor, team, and stakeholder evaluations of the PS&E component • Document lessons learned ■ PS&E component closeout report Deliverables: • Lessons learned memorandum • Archived records UR5 8 • 213 n tes For the I-215 from Murrieta Hot Springs Road to Scott Road Widening Project 100.15.20 QA/QC PROGRAM This activity will include all of the labor related to execution of the project QA/QC program that will be established to support the Project QA/QC activities. Deliverables: • Checklists and report forms consistent with the project QA/QC program ■ Corrective action recommendations, if appropriate 5.2 185 PLANS, SPECIFICATIONS, & ESTIMATE (PS&E) AND CONTRACT SUPPORT 185.10 ENGINEERING SURVEYS Produce the mapping and survey control necessary for PS&E. This supplements the mapping and control surveys that was produced for the Project Report stage. The following scope of work is for surveying services along I-215 between Murrieta Hot Springs Road and Scott Road (approx. 7.8 miles) in support of the inside widening project you are pursuing. This proposal is based upon all tasks being authorized at the same time for the same mobilization period. 185.10.50 CONTROL SURVEYS Horizontal and Vertical corridor control will be established along the 6-mile corridor and will be tied into the North American Datum of 1983 (NAD83 NSRS 2007) and the North American Vertical Datum of 1988 (NAVD88). Existing monuments will be utilized where available and brass cap monuments will be set where no suitable monuments exist. Approximately two to three monuments per mile will be established with Caltrans 2nd order GPS methods, digital levels will be utilized to establish the vertical component. The GPS and digital level data will be downloaded, processed and adjusted. A final report will be prepared which will include a written report, the final adjusted coordinates, calculations and adjustment listings, and copies of the survey field notes. It is assumed that the survey control for this project was performed by David Evans & Associates (DEA) and will be provided by either DEA or the client. Psomas will verify the existing control and densify the control network using a combination of GPS and conventional methods. We will report the results of the verification survey prior to commencing any further survey work. Deliverables: • Draft Survey Control Report • Final Survey Control Report 9 214 Provide Plans, Specifications and Estimates For the I-215 from Murrieta Hot Springs Road to Scott Road Widening Project 185.10.60 ENGINEERING SURVEYS (INCLUDES DRAINAGE INLETS/OUTLETS, ETC.) Design topographic surveys will be performed as requested by the engineering team. Drainage features, bridge structures, walls, surface visible utilities and other surface visible structures will be located with field survey methods. The engineering surveys will utilize both conventional survey methods and 3D Laser Scanning (HDS) as described in 185.10.70. The method to be used will be determined by the survey team based on field conditions and the type of information requested from the engineering team. The topographic survey information will be downloaded, processed and plotted at a scale of 1 "=50' and will be incorporated with the aerial mapping obtained during the PA/ED phase. The final data will be delivered in a Microstation v8 format. Field surveys will be performed along the inside shoulders of the north and southbound I-215 freeway at 50-foot intervals to locate the existing edge of travelled way (ETW) at 1,500 feet/day. We will utilize reflectorless technology to perform this work in order to maintain safety and efficiency. If other methods are required, shoulder or lane closures may be required. However, it is our goal to perform this work without any closures. Psomas will survey and locate existing drainage structures within the existing freeway median. Such features may include drop inlets, catch basins, ditches, headwalls, storm drain lines, etc. This proposal assumes that there will be one feature every 1000 feet along the 7.8 mile alignment, or 40 features total Psomas will survey and locate the existing inside ETW on each existing bridge at Keller Road. Points will be measured at 10-foot intervals. As the fieldwork is completed, we will process the field work and prepare a point plot of the survey data. Features will be shown and labeled with their respective elevation and description. Deliverables include the related CADD and ASCII point files in digital format. Deliverables: ■ Engineering Surveys in Microstation V8 format 185.10.70 PAVEMENT ELEVATION SURVEYS USING MOBILE HDS SCANNING This work is now assumed to be done under the PA&ED scope of services. 185.20 ENGINEERING REPORTS The following reports will be prepared for the design phase of work. 185 .20.10 HYDROLOGY AND HYDRAULIC REPORT Based on the final drainage design, the Hydrology and Hydraulic Report will be updated. 10 • 215 Provide Plans, Specifications and Estimates For the I-215 from Murrieta Hot Springs Road to Scott Road Widening Project Deliverables: • Draft Hydrology and Hydraulic Report • Final Hydrology and Hydraulic Report 185.20.15 GEOTECHNICAL DESIGN REPORT A Geotechnical Design Report (GDR) will be prepared to describe the project setting and describe any design features that involve geotechnical investigations and engineering geology. The GDR will be prepared in accordance with the Caltrans Guidelines for Preparing Geotechnical Design Reports (2006). The Engineer will conduct a site specific geotechnical investigation and prepare a report to present recommendations with respect to bridge foundations, pavement structural sections and earthwork. Engineer will perform the following tasks: a. Review existing data and any monitoring well data from adjacent areas. Reconnoiter the site to observe existing conditions and determine proposed exploration locations. b. We will prepare a Health and Safety plan for use by field personnel during site investigation activities. The plan will include a map identifying the approximate boring location, boring depth, existing facilities, underground and above ground utilities. The plan will include a tabulation of borings by type, number of samples, sample depths, and summation of borings by type. c. Drill, log, and sample approximately 68 hollow -stem auger borings with depths ranging from 5 to 70 feet. Two borings for the bridge will be advanced to 70 feet, or until refusal, at the support location. Six borings used for potential sign structures will be drilled to an average depth of 40 feet. The remaining 60 borings for pavement subgrade investigation will be drilled to a depth of 5 feet and spaced at 500 feet intervals at the median along the project alignment. Specific locations and sample depths of proposed borings will be finalized during the field investigation. Typically, samples will be collected at 5 feet intervals using either a Standard Penetration Test (SPT) Sampler or a Modified California Sampler. We assumed that the on -site soils are not contaminated and the borings can be backfilled with soil cuttings. The upper five feet of the borings will be backfilled with grout and surfaced with cold -patched asphalt. Excess cuttings will be spread thinly at the site. Obtaining County encroachment permits and coordination with County inspection staff is assumed. It is assumed that this is a prevailing wage project. It is assumed that traffic control will be needed for the field exploration. Obtaining other permits, or insurance is not considered in the geotechnical scope. d. Deflection study of the existing pavement sections will be performed. e. Test soil samples in the laboratory to evaluate index, strength, consolidation, and corrosive properties of the site soils. f. Preliminary design memorandum to be included with the bridge type selection package. At each milestone all elements of a project will be addressed at an appropriate level. Generally, the reports will summarize soil and groundwater conditions including boring logs and laboratory test results, recommendations for earthwork, pavement structure sections, temporary shoring, seismic URS 11 216 Provide Plans, Specifications and Estimates For the I-215 from Murrieta Hot Springs Road to Scott Road Widening Project parameters, and construction considerations. Foundation type and capacities and Log of Test Boring Sheets for the bridge widening will be included in the Draft and Final Foundation Reports. Seismic criteria for the project will be based on current Caltrans Seismic Design Criteria (2006). Deliverables: • Draft GDR • Final GDR 185.20.20 MATERIALS REPORT Materials Report will provide recommendations for new pavement structural sections and address soil corrosivity. The Materials Report will be prepared in accordance with Topic 114 of the Caltrans Highway Design Manual and CT 130. 1. Draft Materials Report in accordance with Highway Design Manual Topic 114 (2008), Draft Geotechnical Design Report in accordance with Caltrans Guidelines for Preparing Geotechnical Design Report (2006) and Draft Foundation Report in accordance with Caltrans Guidelines for Structures Foundation Reports (2006) to be completed during the Intermediate Design Milestone and submitted with the 65% design package. 2. Final Materials Report, Final Geotechnical Design Report and Final Foundation Report to be completed during the Final Design Milestone and submitted with the 100% design package. Deliverables: • Draft Materials Report • Final Materials Report 185.25.30 UTILITY COORDINATION No utility conflicts have been identified. No utility related activities are included in this scope of work. The utility locations obtained from the PA&ED phase will be shown on the layout sheets only. Deliverables: ■ Utility locations shown on the layout sheets. 185.30.10 SITE PLANS FOR BRIDGES This task includes the completion of the Bridge Site Data Submittal form and attaching all required background information with the form. In addition to the requested information, any special circumstance or important information will be noted and included. SUBTASKS: • Collect and calculate required information • Prepare site plan drawings • Prepare Bridge Site Data Submittal form Iyi�s 12 217 Provide Plans, Specifications and Estimates For the I-215 from Murrieta Hot Springs Road to Scott Road Widening Project • Complete, when necessary, the "special circumstance/important information" section of the bridge site submittal form. Deliverables: Draft and Final Bridge Site Data Submittal form. 200.10 UTILITY AND MONUMENTATION 200.10.05 UTILITY LOCATIONS (POTHOLING) Currently assumed not to be required. No utility coordination including potholing for high risk utilities is included with this scope of services. Deliverables: • None at this time 220.05.25 MONUMENT PERPETUATION &[ RECORD OF SURVEY A Record of Survey will be prepared for the control established under section 185.10.50 described above. The purpose of this record of survey will be to document and the newly established corridor control for future engineering and construction activities. The record of survey will be prepared in accordance with the Califomia Land Surveyor's Act and recorded with the County of Riverside. The agency fees associated with this map have been estimated at $5,000 and have been included in this proposal as a reimbursable expense. Deliverables: • Record of Survey submitted to the County of Riverside for recordation. 5.3 230 ROADWAY PLANS Includes all activities, from the base maps (skeletons), such as design, delineation, field reviews, and internal/external coordination (see sub -tasks) necessary to develop draft roadway plan sheets for the construction contract. Each of the Subtasks listed below will be prepared, checked, and assembled for the 30%, 60%, 90%, and 100% submittals pursuant to the schedule shown in Table 1. SUBTASKS: • Title Sheet • Typical Cross Sections • Key Map and Line Index • Roadway Layouts, utility locations, Profile and Superelevation Sheets (combined on one set of sheets) • Construction Details • Summary of Quantities Sheets • Standard Plans Selection • Stage Construction and Traffic Handling Plans combined on one set of sheets IIRS 13 218 Provide Plans, Specifications and Estimates For the I-215 from Murrieta Hot Springs Road to Scott Road Widening Project • Water Pollution & Erosion Control Plan • Signing and Pavement Delineation Plans combined on one set of sheets • Construction Area Signs • Electrical Plans (Keller pedestrian lighting) • Murrieta Hot Springs Road Ramp Meters (4 locations) • Drainage Plans & Contour Grading Plans combined on one set of sheets • Draft Specifications • Draft PS&E Quantities and Estimates The above deliverables will be submitted as shown in Table 1 at the following milestones: • 30% PS&E Submittal • 60% PS&E Submittal • 90% PS&E Submittal • 100% PS&E Submittal 230.20 TRANSPORTATION MANAGEMENT PLAN This effort includes all activities necessary to update and develop the project's Transportation Management Plan to accompany the project PS&E. The consultant will utilize the TMP data sheet developed for the Final PR to perform all TMP of the construction project and provide recommendations on how construction staging and MOT should be performed as well as the cost associated with recommended strategies. Our work effort will insure that the facility proposed will provide adequate operations during construction with a minimal disruption of traffic in the work zone. SUBTASKS: • Itemize capital outlay costs • Identify SSPs to be included in contract document • Coordinate major closures with local agencies to determine impact on this project • Refine/finalize traffic contingency plan pending contractor's contingency plan • Update TMP/lane closure database Deliverables: Draft and Final Transportation Management Plan (including its plans, specs, and estimates) 230.25 UTILITY PLANS A separate set of utility plans is not included in this scope of work. The utility locations will be shown on the layout sheets. Deliverables: None URRS 14 • • • 219 Provide Plans, Specifications and Estimates For the I-215 from Murrieta Hot Springs Road to Scott Road Widening Project 230.30 DRAINAGE PLANS All activities, (such as design, delineation, field reviews, and intemal/external coordination) (see sub -tasks) necessary to develop draft drainage plan sheets for construction contract. Deliverables: • Drainage Plans for PS&E delivered per Table 1 230.35 DRAFT SPECIFICATIONS Activities necessary to develop the project draft Special Provisions. Deliverables: • Specifications ready for PS&E delivered per Table 1 230.40 DRAFT PS&E QUANTITIES AND ESTIMATES Includes all activities necessary to develop project quantities and estimates. Deliverables: • Draft Quantities and Estimates ready for PS&E delivered per Table 1. 230.60.05 UPDATED STORM WATER DATA REPORT The Storm Water Data Report prepared for the PA&ED phase of work will be updated pursuant to Project Planning and Design Guide (PPDG); Section 7; Appendix E. DELIVERABLES: Draft Storm Water Data Report Final Storm Water Data Report 230.65 PERMITS This scope of work (SOW) was developed to disclose and evaluate biological resources , common and special status species , and prepare a discrete suite of discretionary permit applications to facilitate Project implementation (e.g. Clean Water Act [CWA] Section 401, 404 and California Department of Fish and Game Code [CDFC] 1600 permitting). For the purposes of this SOW, the Project's study area is assumed to include no more than 300 acres. 230.65.05 401, 404,1602 PERMITS All work during PS&E Development involved in obtaining permits, including: Discussions and negotiations with the permitting agency. Preparation of the permit and attachments such as exhibits, maps, etc.. Submittal of the permit application. The permits anticipated to be needed for this project and covered under this scope of work are: 1. Regional Water Quality Control Board 401 Permit 2. ACE 404 Permit URS 15 220 Provide Plans, Specifications and Estimates For the I-215 from Murrieta Hot Springs Road to Scott Road Widening Project 3. Department of Fish & Game 1602 Permits Literature Review - Rapid informal review of resource databases, local resource management plans, aerial photos, and any other readily available commercial data to determine the locations and types of biological resources that have the potential to exist in the Projects 300-acre study area. The above referenced literature review will support the development of all written deliverables within this SOW. Special Aquatic Resource Area Preliminary Jurisdictional Determination And Update Report - The 300-acre study area will need to be delineated pursuant to the substantive provisions of the: United States Army Corps of Engineers (USACE) Wetland Delineation Manual (Environmental Laboratory, 1987); Lichvar and Wakeley's (2006) Interim regional supplement to the USACE Wetland Delineation Manual Arid West Region Direction on Delineating Arid Streams; the USACE and Environmental Protection Agency's (EPA) June 2007 issued CWA Jurisdiction Following the U.S. Supreme Court's Decision in Rapanos v. United States & Carabell v. United States guidance document; and those analysis tools detailed in A Field Guide to Lake and Streambed Alteration Agreements Sections 1600-1607 (Environmental Services Division, 1994). As such, a pedestrian - based field survey will be conducted and available data (including aerial photographs and United States Geological Survey [USGS] maps) will be reviewed. It is anticipated that differences in terrain, vegetation density, private property, topographic relief, and so forth will allow two biologists to complete the field determinations in five (5) calendar days. The study area is assumed to include no more than ten (10) unique special aquatic resource areas. Additionally, the field survey results will be synthesized into a technical report. The report will be suitable for submittal to the USACE, CDFG and the RWQCB, for discretionary permitting purposes. The report will quantify and enumerate a breakdown of wetlands, non -wetland waters of the U.S., waters of the State, and other sensitive riparian areas within the study area boundaries. The report will include: a description of study methods; background information on discretionary permitting of special aquatic resource areas; a description of vegetation, soils, and hydrology within the study area pursuant to aforementioned methodologies; maps depicting the field survey results; and USACE field data sheets from sampling locations. RWQCB SECTION 401 WATER QUALITY CERTIFICATION NOTIFICATION: A written request for 401 notification water quality certification will be prepared and submitted to the RWQCB for review. Upon formal notification, an agreement should be forthcoming within 60- 90 days of completion of the CEQA process or application submittal, whichever occurs later. The request will include a detailed project description, a description of proposed impacts, and identification of project -specific BMPs, the CEQA Notice of Determination, the conceptual mitigation plan, and a completed notification form. ACE 404 Permit: JURISDICTIONAL DELINEATION UPDATE URS will conduct a field visit to compare existing field conditions with the maps provided in the delineation report and document any changes to jurisdictional features within the project boundary since the wetland delineation was prepared for the project. During the field visit, we will determine the U.S. Army Corps of Engineers (USACE) jurisdiction using the presence of an ordinary high URS 16 221 Provide Plans, Specifications and Estimates For the I-215 from Murrieta Hot Springs Road to Scott Road Widening Project water mark and the methodology in the USACE 1987 wetland delineation manual. This methodology requires that a jurisdictional wetland must contain hydrophytic vegetation, hydric soils, and appropriate hydrology. Califomia Department of Fish and Game (CDFG) jurisdiction will be determined by the presence of hydrophytic vegetation, the location of a definable bed and bank, and the presence of associated wildlife or fish resources. The limits of jurisdiction will be mapped at an appropriate scale (1 inch = 200 feet) if there are any differences found. Civil surveys of any delineated areas are not covered in this scope of work. URS will prepare a jurisdictional delineation update letter report to describe any changes in existing conditions and provide analysis of potential project impacts on jurisdictional features based upon the preliminary design plans, if any such differences are noted. Pre -Application Consultation with Agencies Following the jurisdictional delineation update, URS will initiate contact with the concerned agencies (USACE, CDFG, and the Regional Water Quality Control Board) to provide preliminary project information, solicit concerns, and discuss the requirements and timing associated with the regulatory permits. All effort will be made to conduct the pre -application consultation at a project site meeting. However, depending upon resource agency staff workload and availability, such contact may consist of a project team conference call or written communication. The request for Nationwide Permit (NWP) generally includes: 1. Detailed description of the proposed project, including grading plans provided by the Applicant. 2. Detailed description of the jurisdictional areas to be impacted by the proposed project. (This is generally accomplished by submittal of the delineation report.) 3. Discussion of approvals and certifications being obtained from other federal, state, or local agencies. 4. Conceptual Restoration plan, if required (assumed not required for the proposed project). 5. The Streambed Alteration Notification package submitted to the California Department of Fish and Game (CDFG). 6. The request to the Regional Water Quality Control Board (RWQCB) for water quality certification (or a waiver thereof). 7. The request to the State Historical Preservation Office (SHPO) for information regarding the potential presence of historical properties and the cultural resource report submitted to the Applicant in response. 8. The request to the USFWS for a list of all sensitive species potentially present in the project site and the special -status species survey report submitted to the Applicant in response. CDFG 1602 Streambed Alteration Agreement: A § 1602 Streambed Alteration Notification will be prepared and submitted to the CDFG for review. The request will include a detailed project description, a description of proposed impacts, the CEQA Notice of Determination, and completed notification forms. CDFG will be able to complete the draft agreement within 60-90 days. URS 17 222 Provide Plans, Specifications and Estimates For the I-215 from Marrieta Hot Springs Road to Scott Road Widening Project COORDINATION OF PROCESSING The resource agency notifications will be coordinated with the USACE, RWQCB, and CDFG throughout processing to ensure that any potential issues are made known to the project team and resolved at the earliest possible opportunity. Coordination may include telephone, email, or written correspondence, or meetings with the agencies. CWA SECTION 401, 404 AND CDFC 1600 (ETSEQ) PERMIT APPLICATIONS Since special aquatic resource areas are assumed to exist within the 300-acre study area, and Project implementation will likely adversely impact them, accordingly, the completion of CWA Section 401, 404 and CFGC 1600 (et seq) discretionary permit applications and approvals will be needed. URS will prepare and submit a USACE CWA Section 404 NWP application package (pending review of fmal design specifications and applicant's willingness to implement specific programs to avoid, or minimize adverse effects to special aquatic resource areas). The NWP Program provides applicants with a streamlined USACE evaluation and approval process for certain types of activities that have minimal impacts to jurisdictional aquatic environments. URS will seek to facilitate authorization of intrusive activities within USACE jurisdictional aquatic environments pursuant to NWP terns and conditions. If this permitting strategy is feasible, it will significantly reduce the federal permit processing time and expense. Furthermore, with the issuance of the NWPs, the California RWQCB has determined that individual 401 water quality certifications are required for most nationwide permits. To that end, URS will submit a CWA Section 401 Water Quality Certification Application to the RWQCB (if needed). The USACE will not grant authorization until the water quality certification has been obtained or has been waived. A water quality certification is issued by the RWQCB that states that the applicant will comply with all pertinent water quality standards (both federal and state). Additionally, Pursuant to Division 2, Chapter 6, Sections 1600-1602 of the CFGC, CDFG regulates any proposed activity that may substantially modify, divert, obstruct, or changes to the flow or bed, channel, or bank of any river, stream, or lake, which supports fish or wildlife (see also http://www.dfg.ca.gov/1600/). Pursuant to the California Code of Regulations (CCR), CDFG defines a "stream" (including creeks and rivers) as "a body of water that flows at least periodically or intermittently through a bed or channel having banks and supports fish or other aquatic life. This includes watercourses having surface or subsurface flow that supports or has supported riparian vegetation." CDFG's definition of "lake" includes "natural lakes or man-made reservoirs." CDFG jurisdiction within altered or artificial waterways is based upon the value of those waterways to fish and wildlife. As such, a CDFG streambed alteration agreement will be required for Project implementation. URS will prepare and submit a notification and application package to CDFG, for CFGC 1600 (et seg) compliance. The CFGC 1600 compliance package will include a project description, maps showing project location, construction plans and drawings pertaining to the Project. Agency Coordination - Project staff will informally consult/correspond with the applicable regulatory agencies as needed (e.g., CDFG, USACE, and RWQCB) to identify potential data requirements, mitigation, minimization, and avoidance measures that may be needed to implement the Project. The development of this shared vision between the Applicant and the regulatory agencies will assure that this Project is implemented with efficient regulatory collaboration. tiRS 18 223 Provide Plans, Specifications and Estimates For the L-215 from Murrieta Hot Springs Road to Scott Road Widening Project At present, the extent of discretionary permitting are not completely certain because final design specifications and the Applicant's willingness to implement specific programs to avoid, or minimize adverse effects to biological resources have not yet been thoroughly developed. As a result, the extent of discretionary permitting and mitigation is still somewhat ambiguous. Nonetheless, it will undoubtedly remain necessary for the Applicant. Additionally, this informal consultation will foster and maintain successful working relationships as the Project moves ahead. Deliverables: • Attendance at four (4) permit related meetings by the project delineator and biologist. • Draft, Revised Draft and Final 404 Permit application, Section 1602 Streambed Alteration Agreement application, and Section 401 Water Quality Certification application. 230.65.35 WATER DISCHARGE (NPDES) PERMITS URS will prepare the Notice of Intent (NOI) for RCTC's submittal to the State Water Resources Control Board (SWRCB) to request the NPDES permit for project construction. It is anticipated that two separate NOIs will be required for submittal to the SWRCB since the project is located within the Santa Ana Regional Water Quality Control Board and the San Diego Regional Water Quality Control Board. This scope of work does not include any required permit (NOI) application fees. Further, this scope of work does not include efforts associated with preparation of a Storm Water Pollution Prevention Plan (SWPPP) - it is assumed that the selected project construction contractor will prepare the SWPPP. Deliverables: • NPDES support as requested 235.40 UPDATED ENVIRONMENTAL COMMITMENTS RECORD It is assumed that minor updates will be required to the Environmental Commitments Record (ECR) during PS&E. Time included assumes that any updates would be minor and could be completed within the timeframe shown. Deliverables: • Minor updates to the Environmental Commitments Record °i. O STRUCTURES l $,E ELEMENTS Work involved in the development of draft structures plans, specifications, and estimate. 240.50 OVERALL STRUCTURE PS&E This task includes all efforts involved in the development of the overall projects' plans. Activities under this task include technical coordination of the project, technical meetings, and other directly related coordination activities. URS 19 224 Provide Plans, Specifications and Estimates For the I-215 from Murrieta Hot Springs Road to Scott Road Widening Project Deliverables: Technical coordination and meetings 240.55 FOUNDATION PLAN This task includes the creation of the foundation plan. Subtasks: • Coordination with Caltrans for approval of the foundation plan Structure Site Investigations Preliminary Investigation Report Deliverables: Draft Foundation Plan 240.65 PRELIMINARY FOUNDATION REPORT This task includes the effort to prepare a preliminary Foundation Report (PFR). This document is used as part of the Type Selection process. The PFR is used to document existing foundation conditions, make preliminary foundation recommendations, and identify the need for additional investigations and studies. Subtasks: Project Location Summary of site geology and subsurface conditions. Corrosion evaluation Preliminary Seismic Study Preliminary Foundation Recommendations Additional Field Work and Laboratory Testing Deliverables: Preliminary Foundation Report 240.75 DRAFT GENERAL PLAN (TYPE SELECTION) This task includes all efforts required to develop, review, approve and distribute draft Structures General Plans. The Preliminary Plan Approval process is part of this task and generally includes Type Selection Meetings. Approved preliminary plans are the approved General Plans. Subtasks: • Prepare Preliminary Design • Prepare Preliminary Plan Sheets • Prepare Preliminary Quantities UPS 20 225 Provide Plans, Specifications and Estimates For the I-215 from Murrieta Hot Springs Road to Scott Road Widening Project Prepare Preliminary Estimates Prepare Preliminary Specifications Prepare Type Selection Report Perform a Constructability Review Conduct Type Selection Meting Update General Plans and General Plan Estimate Obtain Preliminary Plan Approval Distribute approved General Plans Deliverables: Type Selection Report Approved General Plans 240.80 PREPARE FOUNDATION REPORT This task includes all efforts required to produce Foundation Reports (FR). Foundation Reports are required for all structures when new or widening to existing structures is proposed. The FR requires sufficient subsurface exploration to characterize geologic and geotechnical conditions for the structure. Foundation Reports utilize information collected during subsurface exploration to provide recommendations that support both the design and construction of the structure. The Foundation Report will be prepared in accordance with the Caltrans Guidelines for Structures Foundation Reports Manual (2006). The FR shall provide, but not be limited to, the following: • Project Location • Summary of Site Geology and Subsurface Conditions • Ground Water • Scour Evaluation • Corrosion Evaluation • Seismic Study • As -Built Foundation Data • Foundation Recommendations • Slope Stability Analyses • General Notes to the Designer • Construction Considerations In addition to the FR, the Log of Test Borings (LOTB), which presents the description, in graphic and text format, of the types of soil and rock encountered during the subsurface exploration, is produced for inclusion in contract plans. Deliverables: • Draft Foundation Report • Final Foundation Report • Log of Test Borings 240.85 DRAFT STRUCTURE PLANS 21 226 Provide Plans, Specifications and Estimates For the I-215 from Murrieta Hot Springs Road to Scott Road Widening Project This task includes all efforts required to prepare draft Structures Plans and Quantities (P&Q). The final product is a draft set of designed, detailed and checked structural plans along with checked quantity calculations for identified contract bid items. The activities include, but are not limited to: Subtasks: • Perform structural analysis and develop draft Design • Prepare draft. Structure Plan Sheets • Perform an independent structural analysis • Check the Design and Plan Sheets • Perform a Constructibility Review (CR) of Unchecked Details • Prepare draft Quantities • Perform an independent check of the draft Quantities • Prepare Specification • Prepare Type Selection Report • Transmit P&Q package to Structure Office Engineer Deliverables: • Draft Structures Plans 240.90 STRUCTURES SPECIAL PROVISIONS AND COST ESTIMATE This task includes efforts required to prepare the draft Structures Specifications and Cost Estimate. The final product is a draft set of Structure Special Provisions, and the Structure Cost Estimate. The activities include, but are not limited to: Generate Structure Contract Item list Prepare draft special provisions Prepare cost estimate for Structure Contract Items Deliverables: Structures Special Provisions Structures Cost Estimate 5.5 250-255 FINAL STRUCTURES ANt+'7-ZOAAY PS&E PACKAGE 250.55 FINAL STRUCTURES PS&E PACKAGE This task includes efforts required to prepare final Structures Plans for incorporation into the final PS&E package. The activities include, but are not limited to: Update plan sheets based on final Project Review (90% Constructability Review) • Review and incorporate District and Structure Office Engineer comments into Final Structure Plans and Quantity calculations Update Specification and other items for RE Pending File Update Type Selection Report Update quantities for contract bid items Deliverables: Final Structures Plans Final Structures Specifications IIRS 22 227 Provide Plans, Specifications and Estimates For the I-215 from Murrieta Hot Springs Road to Scott Road Widening Project fi Final Structures cost estimate • Type Selection Report 255.10.05 SUMMARY CONSTRUCTION SCHEDULE An estimate to construct the planned structure improvements will be assembled for this activity. Deliverables: • Structure Construction Schedule and working day summary. 255.10 UPDATED PS&E PACKAGE Under this activity all of the various Roadway PS&E components will be updated with all comments received. DELIVERABLES: • Updated Roadway PS&E • Updated Traffic PS&E • Updated Hydraulics PS&E • Updated Specification • Updated Cost Estimate 255.15 PERFORM ENVIRONMENTAL RE-EVALUATION At each major milestone of the project an Environmental Revalidation/Reevaluation will need to be preformed. This scope and cost assumes that this will occur four (4) times. It is assumed that no substantial changes or substantial new information will be present since approval of the environmental document and that the Environmental Revalidation form is all that will be required. No analyses or evaluations are assumed to be required or included in this task; this task assumes that only filling out the form with all negative responses and no supporting documentation will be sufficient. Deliverables: • Preparation of Revalidation form four times (assumes no substantial changes or information will be identified and that no new analyses or information will be required to complete the form) 255.20.05 REVIEW PLANS FOR DRAFTING STANDARDS COMPLIANCE The plans will be reviewed to assure compliance with Caltrans Drafting Standards except as noted where several sheet types have been combined at the request of the Client. Deliverables: • Consistent set of plans conforming to Caltrans drafting standards 23 228 Provide Plans, Specifications and Estimates For the I-215 from Murrieta Hot Springs Road to Scott Road Widening Project 255.20.10 INCORPORATE FINAL STRUCTURES PS&E The structures PS&E and the roadway PS&E will be combined into one cohesive and complete PS&E package. Deliverables: Combined plans including both roadway and structure elements Combined specification Combined Cost Estimate 255.25 GEOTECHNICAL INFORMATION HANDOUT This task includes reviewing the Geotechnical Design Report (GDR), Foundation Report (FR), geophysical data, geotechnical instrumentation data, laboratory test data and rock core and soil samples available for viewing that were prepared earlier during the design phase and selecting the necessary sections and information to be included in the Geotechnical Information Handout. The GDR and FR include information such as existing physical setting, geophysical studies, geotechnical conditions, geotechnical analysis and design, construction considerations, and recommendations and specifications. Deliverables: • Geotechnical Information Handout, for the prospective bidders to review. 255.30 MATERIALS INFORMATION HANDOUT The Materials Information Handout (MIH) is prepared for the use of prospective bidders. The handout includes test data on local materials sources; soil survey sheets showing borings, tests, and seismic information (if required). Deliverables: • Material Information Handout for the prospective bidders to review. 255.40 RESIDENT ENGINEER'S PENDING FILE Work involved in preparing the RE Pending File/Structures RE Pending File. Includes preparation of an Environmental Commitments Record (or similar document), contacts with construction to transmit the file and determine what additional information may be required. Also includes preparing and forwarding additional information (such as cross sections/as-builts/slope staking notes/grid grades/structures 4-scales) as requested by construction. In temis of the environmental component of the RE Pending file, the input is a "snapshot" of the Environmental Commitments Record (ECR), or similar document (e.g., Mitigation Monitoring and Reporting Record). Deliverables: • RE Pending File and Structures RE Pending File • Contract special provisions for all items of work • Engineer's Estimate consistent with the plans and special provisions 24 229 Provide Plans, Specifications and Estimates For the I-215 from Murrieta Hot Springs Road to Scott Road Widening Project • Spreadsheet of estimated quantities • Final set of Plans • Contract (from RCTC) 5.6 265 CONTRACT AWARD SUPPORT No activities are assumed to be included in this scope of work 5.7 270 CONSTRUCTION SUPPORT No activities are assumed to be included in this scope of work. 25 230 URS - I -III FEE PROPOSAL WORKSHEET COMPANY: URS Corporation PROJECT: I-215 PS&E (Add One Mixed Flow Lane in Each Direction) DIRECT LABOR MULTIPLIERS SCOPE OF WORK Project Summary Project Manager 1382 Task Managers 412 Sr. Project Engineer 2420 Project Engineer 6617 Staff Engineer 8725 Technician/CADD 8859 Project Administrator 528 Clerical 454 DATE: 1i/13/2008 REV: MILESTONE/PHASE/PROJECT SUMMARY: Aa Phases $88.00 $121,616.00 $72.00 $29.664.00 $58.00 5140,331.00 $47.00 $310,999.00 $35 DO 5305.375.00 $30.00 $265,770.00 $30.00 $15,840.00 $25.00 $11.350.00 TOTAL HOURS 29396.5 TOTAL DIRECT LABOR ESCALATION @ !FRINGE @ OVERHEAD @ 4.00% (Rate) $1,200.945 548,037 800 (of Total Direct Labor + Escalation) 124A4% (of Total Direct Labor + Escalation) OTHER DIRECT EXPENSES ••• Billed at Actual Cost •-- $1,554,234.20 TOTAL MULTIPLIERS ileage 13500 -- Mile P. Air Fare 18 Roundkip ra Reproduction - B&W 21000 Page ;w Color Copies 2200 Page r. CADD Plots 8400 Sheet M Overnight Mail, Communication, Etc. 64 Each g UNITCOST 1' AMOUNT $0.585 57.897.50 $450.00 68.100.00 $0.10 $2.100.00 52.00 $4,400.00 $7.00 S59800.CO 59.50 S608-00 ADL Testing Expenses Lump Sum $35.000,00 Foundations Report 1 Lump Sum , _ 555,550.00 Presentation Boards 25 Each %iT $75.00 Public Involvement Expenses Lump Sum S33.093.00 Traffic Counts and Expenses Per Location •;^. $500.00 Environmental Expenses 1 Lump Sum :, $10,000.00 OUTSIDE SERVICES (w/fee) COMPANY Psomas Associates CNS Engineers $55,550.00 $1.875.00 S10,000 00 TOTAL OTHER DIRECT EXPENSES LABOR: MULTIPLIER I EXPENSES 1 TOTAL $32 03( .06 570,145 83 S i00.90 S 1 e 75.89 $10,682.50 618929.39 $1,602,272 $1.19.331 TOTAL OUTSIDE SERVICES S132,938 FEES OUTSIDE SERVICES ADMIN FEE 005.00% (of Total Outside Services & Outside Services Fees) vPS CORP..^.R,a C'v t�, - 010.00% (of Total Direct Labor +Total Multipliers) OUTSIDE SERVICES @ - (of Total Labor + Total Multiplier for Outside Services) TOTAL FEES $286 964 j TOTAL COST $3,372,139 1 231 Activity ID 01.100 Activity Description Notice To Proceed Ong Dur 0 Early Start 05JAN09 Early Finish RESP RCTC J . I FEB MAR - - LAPR 1 MAY JUN JUL i AUG%,SEP OCT I NOV I Dec �AI�FEBLMAR 201.Q CO N 1 APMAYIJIJ 02.700 30% Plans 50 05JAN09 13MAR09 URS 02.200 QC;30a%Plans 10 16MAR09 27MAR09 URS 02.300 Review 30°%Plan 30 30MAR09 08MAY09 CT08 03.100 60°% PS&E 110 30MAR09 28AUG09 URS 03.200 QC 60% PS&E 20 31AUG09 25SEP09 URS 03.300 Review 60% PS&E 30 28SEP09 06NOV09 CT08 04.100 90% PS&E 70 09NOV09 12FEI310 URS 41/ 04.200 QC 90% PS&E 10 15FEB10 26FEB10 URS 04.300 Review 90% PS&E 30 01 MAR10 09APR10 CT08 05.1.00 100%PS&E 30 12APR10 21MAY10 URS CI el 41111 05.200 05.300 QC 100% PS&E Review100%PS&E 10 24MAY10 i 04JUN10 18JUN10 URS CT08 10 07JUN10 06.100 PS&E Ready To List 10 21JUN10 02J111_10 URS Start Data 05JAN09 finish Date p2JWUQ '.. Onto Date 05JAN09, ;Run Date tsNDvoe 10:53 0 Primaveems, Inc. + _0 Batty Bar - 1101111111111 Progress Bar MHR1 Sheet of t 1 Riverside County Transportation Comm 1-215 Widening (MHSR to SR) Proposal Sc Layout �__-Checked i _. _ Aro, coed Date Revision 4111111111111111MINININIM'cri6caiAcnwty -___ ____ ... RIVERS/DE COUNTY TRANSPORTATION COMMISSION DATE: November 24, 2008 TO: Budget and Implementation Committee FROM: Robert Yates, Multimodal Services Director THROUGH: John Standiford, Deputy Executive Officer SUBJECT: Programming and Policy Amendments to Support the Implementation of the Jobs/Access Reverse Commute and New Freedom Call for Projects Grants STAFF RECOMMENDATION: This item is for the Committee to ratify the Universal Call for Projects process with the following actions: 1) Approve July 1, 2009 as the project start date for all Specialized Transit projects awarded under the Universal Call for Projects as identified on Attachment 1 to this report; 2) Authorize the Executive Director, pursuant to legal counsel review, to extend the applicable interim grantee contracts to June 30, 2009 and approve up to $860,962 of additional Western Riverside County Measure A Specialized Transit funds as identified in Attachment 2 of this report; 3) Approve the proposed project exemptions and exclusions for Riverside Transit Agency (RTA) and SunLine Transit Agency (SunLine) from the Commissions' Farebox Recovery Policy as identified on Attachment 3; and 4) Forward to the Commission for final action. BACKGROUND INFORMATION: At its October 9, 2008 and September 10, 2008 meetings, the Commission approved a suite of specialized transit projects for implementation. These projects were derived through the approval of the Coordinated Plan at the Commission's April 2008 meeting and proposed for implementation through the Universal Call for Projects. DISCUSSION: Commission approval of the Coordinated Plan made the Commission eligible for the first time, receipt of the federal Jobs/Access Reverse Commute (JARC) and New Freedom (NF) funds for the provision of specialized transit service in Riverside County. Since the award of projects in October and September, there has been a learning curve for Commission staff, Consolidated Transportation Service Agency (CTSA) operators (recipients), project proponents' (subrecipients) and the Southern Agenda Item 12 233 California Association of Governments (SCAG) staff in how to properly configure the funds and agreements to allow for the effective implementation of these specialized transit projects. To move the process forward and allow for project delivery, staff recommends the following: Ratification of July 1, 2009, As The Official Start Date For All Awarded Projects Prior to any projects actually starting, they are required to be amended into the Regional Transportation Improvement Plan (TIP). While the process for the TIP amendment is moving forward in a cooperative nature with SCAG, the amendment is not expected to be finalized until sometime in late February 2009. In addition, these federally funded projects also are required to be entered into the Transportation Award and Electronic Management program (TEAM) and approved, prior to any disbursement of funds from the federal government. While it is possible to concurrently build the project databases in TEAM, they cannot be finalized until the TIP amendment is processed. Lastly, staff has recently received an interpretation from FTA that any implementation of the approved projects prior to the TIP amendment becoming finalized will jeopardize the funds. As such, staff is recommending that the implementation of these projects begin on July 1, 2009, in order to accommodate the TIP amendment and TEAM process. Extension of Interim Measure A Grantee Contracts In order to accommodate the above recommended start date, staff is requesting Commission approval of a third and final interim Specialized Transit funding allocation. This interim period would comprise two additional quarters of Measure A payments to existing grantees as identified on Attachment 2. This request is being made so as to not interrupt existing service while the final preparations for the new projects are completed. The result of this action will be the continuation of Specialized Transit funding for the entire fiscal year with $1.716 million of Measure A Specialized Transit funds being allocated to the existing operators for the provision of service. This expenditure of Measure A funds allows for uninterrupted service for the FY 2008/09 and for the new projects awarded under the Universal Call for Projects process to be properly configured so that no federal funds are lost or found to have been expended in error. All federally funded projects will be expected to start with no further Commission action needed on July 1, 2009. Farebox Policy Modification Given that RTA and Sunline will be acting as Consolidated Transportation Service Agency (CTSA) operators and recipient agencies, they will be responsible for entering the subrecipient projects into TEAM, managing the reporting process and disbursing the federal funds to the subrecipient operators. This results in a need Agenda Item 12 • • • 234 • • • for a modification of the Commission's farebox recovery policy so that RTA and SunLine are not penalized in their farebox calculations by having to account for the pass -through funds disbursed to the subrecipient providers. The list of projects to be excluded from the farebox recovery calculations are identified on Attachment 3 of this report. Additionally, since RTA and SunLine will also be operating their own projects, a separate modification to allow for consistency with the Transportation Development Act (TDA) farebox recovery requirements is necessary. This modification, if approved, would exempt the four federally funded projects awarded to RTA and SunLine, for up to two years from the farebox recovery calculation. This action is necessary in order for the operators to not be penalized for starting up new service. These projects are also identified on Attachment 3 of this report. Next Steps It is the intent of staff, with these actions if approved, to conclude the process of organizing Riverside County to accept federal funds for use on specialized transit service. With these actions, staff shall be in a position to direct the funds into the hands of the approved operators in return for their provision of service beginning July 1, 2009. The extension requested will also allow for a normalization of service to the Commission's fiscal year cycle. It is also staff's intent to use this process as a "lessons learned" experience and factor these lessons into the next Call for Projects. Staff anticipates bringing forward to the Commission, a request for a subsequent Universal call for Projects in November 2010. This call for projects would build on the current process and would be for specialized transit projects to be funded and implemented FY 2011 /12 using new Measure A funds as well as potential JARC and NF funds should the federal government continue to allocate them. Implementing the subsequent call for projects in November 2010, provides staff with sufficient time to manage the call for projects process, award projects, execute the required agreements and implement service on July 1, 2011, when the current contracts that are the subject of this report are concluded. Financial Information In Fiscal Year Budget: Yes Year: FY 2008/09 Amount: $860,962 Source of Funds: Measure A Specialized Transit Budget Ad ustment: No GLA No.: 225 26 86101 Fiscal Procedures Approved: \Y/4.44:Ajann o l Date: 1 1 /13/2008 Agenda Item 12 235 Attachments: 1) Approved Specialized Transportation Projects for July 1, 2009 Start 2) Approved list of Interim Measure A Specialized Transit Operators 3) Modification to the Commissions' Farebox Recovery Policy Agenda Item 12 236 Attachment 1 Universal Call for Projects Approved Specialized Transit Projects for Implementation July 1, 2009 Coachella Valley • Agreement No.09-62-018-00 to the Coachella Valley Association of Governments (CVAG) $78,496 in JARC grant funds for the Homeless Bus Pass Program. • Agreement No. 09-62-019-00 to the Desert Samaritans for the Elderly $40,000 in New Freedom grant funds for the Last Resort Transportation Program. • RCTC $15,000 in JARC funds for the Coachella Valley Rideshare Program. • Agreement No. 09-62-016-00 to SunLine Transit Agency $250,000 in JARC grant funds for the Guaranteed Ride Program. • Agreement No. 09-62-015-00. to SunLine Transit Agency $180,000 in New Freedom grant funds for the Coachella Valley TRIP Program. Western County • Agreement No. 09-26-022-00 to the Partnership for Independent Living for the TRIP Program in the amount of $1,146,408 in Measure A Specialized Transit Funds; • Agreement No.09-26-025-00 to The Riverside Transit Agency (RTA) for the Extended late Night Service Project in the amount of $890,024 in JARC Funds and $838,750 in Measure A Specialized Transit grant funds; • Agreement No. 09-26-026-00 to Car -A -Van Transit for the Car -A -Van Transit Service in the amount of $695.000 in Measure A Specialized Transit grant funds; • Agreement No. 09-26-023-00 to Care Connexxus, Inc for the Specialized Shuttle Project in the amount of $70,000 in New Freedom grant funds and $455,000 in Measure A Specialized Transit grant funds; • Agreement No. 09-26-024-00 to Operation Safe House for the Main Street Transitional Living Program in the amount of $38,700 in Measure A Specialized Transit grant funds; • Agreement No. 09-26-027-00 to the Volunteer Center of Riverside County for the Transportation Access Program in the amount of $406,146 in Measure A Specialized Transit grant funds; • Agreement No. 09-26-028-00 to Blindness Support Services for the Travel Training Program in the amount of $187,997 in New Freedom grant funds and $112,797 in Measure A Specialized Transit grant funds; • Agreement No. 09-26-029-00 to the Friends of Moreno Valley Senior Center for the Mo-van transit Service in the amount of $123,000 in Measure A Specialized Transit grant funds; 237 Attachment 1 (cont.) Universal Call for Projects Approved Specialized Transit Projects for Implementation July 1, 2009 • Agreement No.09-26-030-00 to the Riverside Transit Agency (RTA) for the CommuterLink routes 212, 214 Service in the amount of $272,828 in JARC grant funds and $829,078 in Measure A Specialized Transit grant funds; • Agreement No. 09-26-031-00 to C.A.S.A. for Riverside County for the Specialized Transportation Service for Abused Children Program in the amount of $28,697 in New Freedom grant funds and $74,000 in Measure A Specialized Transit grant funds; • Agreement No. 09-26-032-00 to Beaumont Adult School for the Low Income Adult Student Transportation Project in the amount of $37,000 in Measure A Specialized Transit grant funds; • Agreement No. 09-26-033-00 to Boys and Girls Clubs of Southwest County for the Before and After School Transportation Program in the amount of $113,468 in JARC grant funds and $348,673 in Measure A Specialized Transit grant • Agreement No. 09-26-034-00 to Jefferson Transitional Programs for the Jefferson Shuttle Project in the amount of $69,620 in New Freedom grant funds and $44,046 in Measure A Specialized Transit grant funds; • Agreement No. 09-26-035-00 to City of Norco Parks Department for then Norco Senior Shuttle Service Program in the amount of $153,443 in Measure A Specialized Transit grant funds; • Agreement No. 09-26-036-00 to Inland Aids Project for the Inland Aids Project Transportation Program in the amount of $306,500 in Measure A Specialized Transit grant funds; • Agreement No. 09-26-037-00 to Wildomar Senior Community for the Senior Community Transportation Program in the amount of $25,892 in New Freedom grant funds; • Agreement No. to Riverside County Regional Medical Center for the Specialized NEMT Plan and NF partnership program in the amount of $170,267 in New Freedom grant funds and $390,649 in Measure A Specialized Transit grant funds 238 MEASURE A SPECIALIZED TRANSIT • FY 08/09 APPROVED & RECOMMENDED FUNDING • • ATTACHMENT FY 08/09 INTERIM ALLOCATION BY QUARTER APPROVED RECOMMENDED Applicant Agreement Number Qtrt Qtr2 Qtr3 Qtr4 TOTAL Beaumont Adult Schou Agreement No: 06-26-051-0: 5,203 5,203 5,203 5,203 20,812 Blindness Support Service: Agreement No. 07-26-023-0: 18,778 18,778 18,778 18,778 75,112 Boys and Girls Clubs of Southwest County Agreement No. 06-26-052-0: 18,724 18,724 18,724 18,724 74,896 231,524 Care -A -Van Transit, Inc. Agreement No.06-26-053-0Z 57,881 57,881 57,881 57,881 Care Connwocus, Inc Agreement No. 07-26-073-0: 43,750 43,750 43,750 43,750 175,000 CASA Agreement No. 07-26-072-0: 7,500 7 500 7,500 7,500 30,000 City of Norcc Agreement No. 06-26-059-0: 18,279 18,279 18,279 18,279 73,116 Friends of Moreno Valle, Agreement No. 06-26-054-0: 11,943 11,943 11,943 11,943 47,772 Inland AIDS Project Agreement No. 06-26-055-0: 25,000 25,000 25,000 25,000 100,000 Operation SafeHouse, Inc Agreement No. 06-26-056-01 5,000 5,000 Independent Living Partnershil Agreement No. 06-26-057-0: 104,149 104,149 104,149 104,149 416,596 274,664 Riverside County Regional Medical Cente: Agreement No. 06-26-058-0: 68,666 68,666 68,666 68,666 Volunteer Center of Riverside County Agreement No.07-26-021-0: 48,088 48,088 48,088 48,088 192,352 TOTAL $427,961 $427,961 $432,961 $427,961 $1,716,844 239 Attachment 3 November 24, 2008 Modification to the Commissions' Farebox Recovery Policy Farebox Recovery 2 year Exemptions / RTA These projects are recommended for exemption. The term of these exemptions is for up to 2 years as allowed for under the Transportation Development Act (TDA), and is designed to assist operators by not penalizing them for the startup of new or expanded service. The 2 year exemptions are specific to the following projects only and no other exemptions are approved as a result of this modification: • Agreement No.09-26-025-00 to The Riverside Transit Agency (RTA) for the Extended late Night Service Project in the amount of $890,024 in JARC Funds and $838,750 in Measure A Specialized Transit grant funds; • Agreement No.09-26-030-00 to the Riverside Transit Agency (RTA) for the CommuterLink routes 212, 214 Service in the amount of $272,828 in JARC grant funds and $829,078 in Measure A Specialized Transit grant funds; Farebox Recovery 2 year Exemptions / SunLine These projects are recommended for exemption. The term of these exemptions is for up to 2 years as allowed for under the Transportation Development Act (TDA), and is designed to assist operators by not penalizing them for the start up of new or expanded service. The 2 year exemptions are specific to the following projects only and no other exemptions are approved as a result of this modification: • Agreement No. 09-62-016-00 to Sunline Transit Agency $250,000 in JARC grant funds for the Guaranteed Ride Program. • Agreement No. 09-62-015-00 to Sunline Transit Agency $180,000 in New Freedom grant funds for the Coachella Valley TRIP Program. Farebox Recovery Project Exclusions: These projects are recommended for exclusion from the RTA farebox recovery calculation. No other projects or service is approved for exclusion as a result of this modification Western County / RTA • Agreement No. 09-26-022-00 to the Partnership for Independent Living for the TRIP Program in the amount of $1,146,408 in Measure A Specialized Transit Funds; • Agreement No. 09-26-026-00 to Car -A -Van Transit for the Car -A -Van Transit Service in the amount of $695.000 in Measure A Specialized Transit grant funds; 240 Attachment 3 (cont.) November 24, 2008 Modification to the Commissions' Farebox Recovery Policy • Agreement No. 09-26-023-00 to Care Connexxus, Inc for the Specialized Shuttle Project in the amount of $70,000 in New Freedom grant funds and $455,000 in Measure A Specialized Transit grant funds; • Agreement No. 09-26-024-00 to Operation Safe House for the Main Street Transitional Living Program in the amount of $38,700 in Measure A Specialized Transit grant funds; • Agreement No. 09-26-027-00 to the Volunteer Center of Riverside County for the Transportation Access Program in the amount of $406,146 in Measure A Specialized Transit grant funds; • Agreement No. 09-26-028-00 to Blindness Support Services for the Travel Training Program in the amount of $187,997 in New Freedom grant funds and $112,797 in Measure A Specialized Transit grant funds; • Agreement No. 09-26-029-00 to the Friends of Moreno Valley Senior Center for the Mo-van transit Service in the amount of $123,000 in Measure A Specialized Transit grant funds; • Agreement No. 09-26-031-00 to C.A.S.A. for Riverside County for the Specialized Transportation Service for Abused Children Program in the amount of $28,697 in New Freedom grant funds and $74,000 in Measure A Specialized Transit grant funds; • Agreement No. 09-26-032-00 to Beaumont Adult School for the Low Income Adult Student Transportation Project in the amount of $37,000 in Measure A Specialized Transit grant funds; • Agreement No. 09-26-033-00 to Boys and Girls Clubs of Southwest County for the Before and After School Transportation Program in the amount of $113,468 in JARC grant funds and $348,673 in Measure A Specialized Transit grant • Agreement No. 09-26-034-00 to Jefferson Transitional Programs for the Jefferson Shuttle Project in the amount of $69,620 in New Freedom grant funds and $44,046 in Measure A Specialized Transit grant funds; • Agreement No. 09-26-035-00 to City of Norco Parks Department for then Norco Senior Shuttle Service Program in the amount of $153,443 in Measure A Specialized Transit grant funds; • Agreement No. 09-26-036-00 to Inland Aids Project for the Inland Aids Project Transportation Program in the amount of $306,500 in Measure A Specialized Transit grant funds; • Agreement No. 09-26-037-00 to Wildomar Senior Community for the Senior Community Transportation Program in the amount of $25,892 in New Freedom grant funds; • Agreement No. to Riverside County Regional Medical Center for the Specialized NEMT Plan and NF partnership program in the amount of $170,267 in New Freedom grant funds and $390,649 in Measure A Specialized Transit grant funds • • 241 • • • Attachment 3 (cont.) November 24, 2008 Modification to the Commissions' Farebox Recovery Policy Farebox Recovery Project Exclusions: These projects are recommended for exclusion from the SunLine farebox recovery calculation. No other projects or service is approved for exclusion as a result of this modification Coachella Valley/SunLine • Agreement No.09-62-018-00 to the Coachella Valley Association of Govemments (CVAG) $78,496 in JARC grant funds for the Homeless Bus Pass Program. • Agreement No. 09-62-019-00 to the Desert Samaritans for the Elderly $40,000 in New Freedom grant funds for the Last Resort Transportation Program. • RCTC $124,504 in JARC funds for the Coachella Valley Rideshare Program. 242 • • • RIVERSIDE COUNTY TRANSPORTATION COMMISSION DATE: November 24, 2008 TO: Budget and Implementation Committee FROM: Jerry Rivera, Program Manager THROUGH: Robert Yates, Multimodal Services Director SUBJECT: Fund Transfer Agreement for Operation of a Freeway Service Patrol Program in Riverside County STAFF RECOMMENDATION: This item is for the Committee to: 1) Approve Fund Transfer Agreement No. 09-45-059-00 with the state of California Department of Transportation (Caltrans) for the Riverside County Freeway Service Patrol (FSP) program in the amount of $1,656,238 in state funding for FY 2008/09; and 2) Forward to the Commission for final action. BACKGROUND INFORMATION: The Riverside County FSP program has been in operation for over 14 years and provides roving tow truck service on nine beats on State Route 60, State Route 91, Interstate 215/SR-60, and Interstate 15 during the morning and afternoon commute hours. The FSP program is funded by the state of California (80%) and local Service Authority for Freeway Emergencies (SAFE) fees (20%). Funds are allocated to participating agencies through a formula based on population, urban freeway lane miles, and levels of congestion. The agreement for FY 2008/09 provides for continued state funding in the amount of $1,656,238 and requires a local match of $414,060. This is an increase of $137,759 in state funds over the funding level for FY 2007/08. The Commission's FY 2008/09 budget for the Motorist Assistance Program includes $1,416,300 in State funding. The additional state funds are not being requested at this time. Staff, along with the California Highway Patrol (CHP) and Caltrans, will review the hours of operation and service level to determine if any additional service or a new beat is warranted. Any state funds not claimed in the current fiscal year may be carried over and claimed in FY 2009/10. Annually, the program provides approximately 45,500 assists to stranded motorists along Riverside County freeways. The Commission contracts with four tow truck operators to provide twenty tow trucks to patrol these routes Monday through Agenda Item 13 243 Friday during the peak commute hours, 5:30 a.m. to 8:30 a.m. and 3:00 p.m. to 7:00 p.m. The programs day to day field supervision is handled by the CNP. Financial Information In Fiscal Year Budget: Yes Year: FY 2008/09 Amount: $1,656,238 Source of Funds: State of California Budget Ad ustment: No GLA No.: 201-45-41505 Fiscal Procedures Approved: \14€4.zazdvi n Date: 1 1 /13/2008 Attachment: FSP Program Fund Transfer Agreement No. 09-45-049-00 Agenda Item 13 • • 244 • • Agreement No.09-45-049-00 FREEWAY SERVICE PATROL PROGRAM FUND TRANSFER AGREEMENT (Non Federal) Agreement No. FSP09-6054(060) Location: 08-RIV-Var-RCTC Project No. FSP09-6054(060) EA: 08-925095L THIS AGREEMENT, effective on July 1, 2008, is between the State of California, acting by and through the Department of Transportation, hereinafter referred to as STATE, and the Riverside County Transportation Commission, a public agency, hereinafter referred to as "ADMINISTERING AGENCY." WHEREAS, Streets and Highways Code (S&HC) Section 2560 et seq. authorizes STATE and administering agencies to develop and implement a Freeway Service Patrol (FSP) Program on traffic -congested urban freeways throughout the state; and WHEREAS, STATE has distributed available State Highway Account funds to administering agencies participating in the FSP Program in accordance with S&HC Section 2562; and WHEREAS, ADMINISTERING AGENCY has applied to STATE and has been selected to receive funds from the FSP Program for the purpose of Freeway Service Patrol for FY 2008-2009, hereinafter referred to as "PROJECT"; and WHEREAS, proposed PROJECT funding is as follows: Total Cost State Funds $2,070,298.00 $1,656,238.00 Local Funds $414,060.00 ; and WHEREAS, STATE is required to enter into an agreement with ADMINISTERING AGENCY to delineate the respective responsibilities of the parties relative to prosecution of said PROJECT; and WHEREAS, STATE and ADMINISTERING AGENCY mutually desire to cooperate and jointly participate in the FSP Program and desire to specify herein the terms and conditions under which the FSP program is to be conducted; and WHEREAS, ADMINISTERING A ENCY has approved entering into this Agreement under aut r y of Resolution No. �� (9/A approved by ADMINISTERING AGENCY on ��,/%A— , a copy of which is attached. For Caltrans Use Only I hereby Certify upon my own personal knowledge that budgeted funds are available for this encumbrance Chapter' Statutes' Item Accounting Officer 1 Date 1$1,656,238.00 Ip-2l-B� fiscal Year' Program 1 BC! Category (Fund Source I $ 268 1 2008 12660-102-042 12008/2009120.30.010.600I C 1262040 I114-042-T I I I I I I I Page 1 of 6 Non -Fed FSP 245 NOW, THEREFORE, the parties agree as follows: SECTION I STATE AGREES: • 1. To define or specify, in cooperation with ADMINISTERING AGENCY, the limits of the State Highway segments to be served by the FSP as well as the nature and amount of the FSP dedicated equipment, if any, that is to be funded under the FSP Program. 2. To pay ADMINISTERING AGENCY the STATE's share, in amount not to exceed $1,656,238.00, of eligible participating PROJECT costs. 3. To deposit with ADMINISTERING AGENCY, upon ADMINISTERING AGENCY's award of a contract for PROJECT services and receipt of an original and two signed copies of an invoice in the proper form, including identification of this Agreement Number and Project Number, from ADMINISTERING AGENCY, the amount of $264,998.08. This initial deposit represents STATE's share of the estimated costs for the initial two months of PROJECT. Thereafter, to make reimbursements to ADMINISTERING AGENCY as promptly as state fiscal procedures will permit, but not more often than monthly in arrears, upon receipt of an original and two signed copies of invoices in the proper form covering actual allowable costs incurred for the prior sequential month's period of the Progress Payment Invoice. (The initial deposit will be calculated at 16% of the STATE's total share.) 4. When conducting an audit of the costs claimed by ADMINISTERING AGENCY under the. provisions of this Agreement, STATE will rely to the maximum extent possible on any prior audit of ADMINISTERING AGENCY performed pursuant to the provisions of state and federal laws. In the absence of such an audit, work of other auditors will be relied upon to the extent that work is acceptable to STATE when planning and conducting additional audits. SECTION II ADMINISTERING AGENCY AGREES: 1. To commit and contribute matching funds from ADMINISTERING AGENCY resources which shall be an amount not less than 25 percent of the amount provided by STATE from the State Highway Account. 2. The ADMINISTERING AGENCY's detailed PROJECT Cost Proposal is attached hereto and made an express part of this Agreement. The detailed PROJECT Cost Proposal reflects the provisions and/or regulations of Section III, Article 8, of this Agreement. 3. To use all state funds paid hereunder only for those transportation related PROJECT purposes that conform to Article XIX of the California State Constitution. 4. STATE funds provided to ADMINISTERING AGENCY under this Agreement shall not be used for administrative purposes by ADMINISTERING AGENCY. Page 2 of 6 Non -Fed FSP 246 • • • 5. To develop, in cooperation with STATE, advertise, award, and administer PROJECT contract(s) in accordance with ADMINISTERING AGENCY competitive procurement procedures. 6. Upon award of a contract for PROJECT, to prepare and submit to STATE an original and two signed copies of invoicing for STATE's initial deposit specified in Section I, Article 3. Thereafter, to prepare and submit to STATE an original and two signed copies of progress invoicing for STATE's share of actual expenditures for allowable PROJECT costs. 7. Said invoicing shall evidence the expenditure of ADMINISTERING AGENCY's PROJECT participation in paying not less than 20% of all allowable PROJECT costs and shall contain the information described in Chapter 5 of the Local Assistance Procedures Manual and shall be mailed to the Department of Transportation, Accounting Service Center, MS 33, Local Program Accounting Branch, P.O. Box 942874, Sacramento CA, 94274-0001. 8. Within 60 days after completion of PROJECT work to be reimbursed under this Agreement, to prepare a final invoice reporting all actual eligible costs expended, including all costs paid by ADMINISTERING AGENCY and submit that signed invoice, along with any refund due STATE, to the District Local Assistance Engineer. Backup information submitted with said final invoice shall include all FSP operational contract invoices paid by ADMINISTERING AGENCY to contracted operators included in expenditures billed for to STATE under this Agreement. 9. COST PRINCIPLES A) ADMINISTERING AGENCY agrees to comply with, and require all project sponsors to comply with, Office of Management and Budget Circular A-87, Cost Principles for State and Local Government, and 49 CFR, Part 18, Uniform Administrative Requirements for Grants and Cooperative Agreements to State and Local Governments. B) ADMINISTERING AGENCY will assure that its Fund recipients will be obligated to agree that (1) Contract Cost Principles and Procedures, 48 CFR, Federal Acquisition Regulations System, Chapter 1, Part 31, et seq., shall be used to determine the allowability of individual PROJECT cost items, and (2) those parties shall comply with Federal administrative procedures in accordance with 49 CFR, Part 18, Uniform Administrative Requirements for Grants and Cooperative Agreements to State and Local Governments. Every sub -recipient receiving Funds as a contractor or subcontractor under this Agreement shall comply with Federal administrative procedures in accordance with 49 CFR, Part 18, Uniform Administrative Requirements for Grants and Cooperative Agreements to State and Local Governments. C) Any Fund expenditures for costs for which ADMINISTERING AGENCY has received payment or credit that are determined by subsequent audit to be unallowable under Office of Management and Budget Circular A-87, 48 CFR, Chapter 1, Part 31 or 49 CFR, Part 18, are subject to repayment by ADMINISTERING AGENCY to STATE. Should ADMINISTERING AGENCY fail to reimburse Fund moneys due STATE within 30 days of demand, or within such other period as may be agreed in writing between the Parties hereto, STATE is authorized to intercept and withhold future payments due ADMINISTERING AGENCY from STATE or any third -party source, including, but not limited to, the State Treasurer, the State Controller, and the California Transportation Commission. Page 3 of 6 Non -Fed FSP 247 10. THIRD PARTY CONTRACTING • A) ADMINISTERING AGENCY shall not award a construction contract over $10,000 or other contracts over $25,000 [excluding professional service contracts of the type which are required to be procured in accordance with Govemment Code Sections 4525 (d), (e) and 0)] on the basis of a noncompetitive negotiation for work to be performed using Funds without the prior written approval of STATE. B) Any subcontract or agreement entered into by ADMINISTERING AGENCY as a result of disbursing Funds received pursuant to this Agreement shall contain all of the fiscal provisions of this Agreement and shall mandate that travel and per diem reimbursements and third -party contract reimbursements to subcontractors will be allowable as project costs only after those costs are incurred and paid for by the subcontractors. C) In addition to the above, the preaward requirements of third party contractor/consultants with ADMINISTERING AGENCY should be consistent with Local Program Procedures as published by STATE. 11. ACCOUNTING SYSTEM ADMINISTERING AGENCY, its contractors and subcontractors shall establish and maintain an accounting system and records that properly accumulate and segregate Fund expenditures by line item. The accounting system of ADMINISTERING AGENCY, its contractors, and all subcontractors shall conform to Generally Accepted Accounting Principles (GAAP), enable the determination of incurred costs at interim points of completion, and provide support for. reimbursement payment vouchers or invoices. 12. RIGHT TO AUDIT For the purpose of determining compliance with this Agreement and other matters connected with the performance of ADMINISTERING AGENCY's contracts with third parties, ADMINISTERING AGENCY, ADMINISTERING AGENCY'S contractors and subcontractors, and STATE shall each maintain and make available for inspection all books, documents, papers, accounting records, and other evidence pertaining to the performance of such contracts, including, but not limited to, the costs of administering those various contracts. All of the above referenced parties shall make such materials available at their respective offices at all reasonable times for three years from the date of final payment of Funds to ADMINISTERING AGENCY. STATE, the California State Auditor, or any duly authorized representative of STATE or the United States Department of Transportation shall each have access to any books, records, and documents that are pertinent for audits, examinations, excerpts, and transactions, and ADMINISTERING AGENCY shall furnish copies thereof if requested. • Page 4 of 6 Non -Fed FSP 248 13. TRAVEL AND SUBSISTENCE Payments to only ADMINISTERING AGENCY for travel and subsistence expenses of ADMINISTERING AGENCY forces and its subcontractors claimed for reimbursement or applied as local match credit shall not exceed rates authorized to be paid exempt non -represented State employees under current State Department of Personnel Administration (DPA) rules. If the rates invoiced are in excess of those authorized DPA rates, then ADMINISTERING AGENCY is responsible for the cost difference and any overpayments shall be reimbursed to STATE on demand. 14. SINGLE AUDIT ADMINISTERING AGENCY agrees to include all state (Funds) and federal -funded projects in the schedule of ,projects to be examined in ADMINISTERING AGENCY's annual audit and in the schedule of projects to be examined under its single audit prepared in accordance with Office of Management and Budget Circular A-133. SECTION III IT IS MUTUALLY AGREED: 1. All obligations of STATE under the terms of this Agreement are subject to the appropriation of resources by the Legislature and the encumbrance of funds under this Agreement. Funding and reimbursement is available only upon the passage of the State Budget Act containing these STATE funds. The starting date of eligible reimbursable activities shall be JULY 1, 2008. 2. All obligations of ADMINISTERING AGENCY under the terms of this Agreement are subject to authorization and allocation of resources by ADMINISTERING AGENCY. 3. ADMINISTERING AGENCY and STATE shall jointly define the initial FSP program as well as the appropriate level of FSP funding recommendations and scope of service and equipment required to provide and manage the FSP Program. No changes shall be made in these unless mutually agreed to in writing by the parties to this Agreement. 4. Nothing in the provisions of this Agreement is intended to create duties or obligations to or rights in third parties not parties to this Agreement or affect the legal liability of either party to this Agreement by imposing any standard of care with respect to the maintenance of State highways different from the standard of care imposed by law. 5. Neither STATE nor any officer or employee thereof is responsible for any injury, damage or liability occurring or arising by reason of anything done or omitted to be done by ADMINISTERING AGENCY under or in connection with any work, authority, or jurisdiction delegated to ADMINISTERING AGENCY under this Agreement. It is understood and agreed that, pursuant to Government Code Section 895.4, ADMINISTERING AGENCY shall fully defend, indemnify, and save harmless the State of California, its officers and employees from all claims, suits, or actions of every name, kind, and description brought for or on account of injury (as defined in Government Code Section 810.8) occurring by reason of anything done or omitted to be done by ADMINISTERING AGENCY under or in connection with any work, authority or jurisdiction delegated to ADMINISTERING AGENCY under this Agreement. Page 5 of 6 Non -Fed FSP 249 6. Neither ADMINISTERING AGENCY nor any officer or employee thereof is responsible for an. injury, damage, or liability occurring or arising by reason of anything done or omitted to be done by STATE under or in connection with any work, authority, or jurisdiction delegated to STATE under this Agreement. It is understood and agreed that, pursuant to Government Code Section 895.4, STATE shall fully defend, indemnify and save harmless ADMINISTERING AGENCY, its officers and employees from all claims, suits, or actions of every name, kind, and description brought for or on account of injury (as defined in Govemment Code Section 810.8) occurring by reason of anything done or omitted to be done by STATE under or in connection with any work, authority or jurisdiction delegated to STATE under this Agreement. 7. ADMINISTERING AGENCY will maintain an inventory of all non -expendable PROJECT equipment, defined as having a useful life of at least two years and an acquisition cost of $500 or more, paid for with PROJECT funds. At the conclusion of this Agreement, ADMINISTERING AGENCY may either keep such equipment and credit STATE its share of equipment's fair market value or sell such equipment at the best price obtainable at a public or private sale (in accordance with established STATE procedures) and reimburse STATE its proportional share of the sale price. 8. ADMINISTERING AGENCY and its sub -contractors will comply with all applicable Federal and State laws and regulations, including but not limited to, Office of Management and Budget Circular A-97, Cost Principles for State and Local Governments (49 CFR, Part 18, Uniform Administrative Requirements for Grants and Cooperative Agreements to State and Local Governments). 9. In the event that ADMINISTERING AGENCY fails to operate the PROJECT commenced an reimbursed under this Agreement in accordance with the terms of this Agreement or fails to comply with applicable Federal and State laws and regulations, STATE reserves the right to terminate funding for PROJECT, or portions thereof, upon written notice to ADMINISTERING AGENCY. 10. This Agreement shall terminate on June 30, 2010. However, the non -expendable equipment, and liability clauses shall remain in effect until terminated or modified in writing by mutual agreement. STATE OF CALIFORNIA Department of Transportation Riverside County Transportation Commission By: By. Office of Project Implementation, South Title: Division of Local Assistance Date: Date: Page 6 of 6 Non -Fed FSP 250