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04 April 26, 2010 Budget & ImplementationRECORDS • RIVERSIDE COUNTY TRANSPORTATION COMMISSION BUDGET AND IMPLEMENTATION COMMITTEE MEETING AGENDA TIME: 9:30 a.m. DATE: Monday, April 26, 2010 LOCATION: BOARD ROOM County of Riverside Administrative Center 4080 Lemon Street, First Floor, Riverside • SP- COMMITTEE MEMBERS oes. Greg Pettis, Chair / Kathleen DeRosa, City of Cathedral City Scott Matas, Vice Chair / Russell Betts, City of Desert Hot Springs Roger Berg / Jeff Fox, City of Beaumont Joseph DeConinck / To Be Appointed, City of Blythe Ray Quinto / Jim Hyatt, City of Calimesa Mary Craton / Jordan Ehrenkranz, City of Canyon Lake Eduardo Garcia / Steven Hernandez, City of Coachella Robin Lowe / Eric McBride, City of Hemet Bob Magee / Melissa Melendez, City of Lake Elsinore Terry Henderson / Don Adolph, City of La Quinta Rick Gibbs / Randon Lane, City of Murrieta Steve Adams / Andy Melendrez, City of Riverside Ron Roberts / Jeff Comerchero, City of Temecula John F. Tavaglione, County of Riverside, District II Jeff Stone, County of Riverside, District III 9- STAFF -& Anne Mayer, Executive Director Theresia Trevino, Chief Financial Officer Sp- AREAS OF RESPONSIBILITY -4) Annual Budget Development and Oversight Competitive Federal and State Grant Programs Countywide Communications and Outreach Programs Countywide Strategic Plan Legislation Measure A Implementation Public Communications and Outreach Programs Short Range Transit Plans 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 www.rctc.orq AGENDA * *Actions may be taken on any item listed on the agenda 9:30 a.m. Monday, April26, 2010 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.orq. 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 C/erk 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 April 26, 2010 Page 2 Under the Brown Act, the Board should not take action on or discuss matters . raised during public comment portion of the agenda which are not listed on the agenda. Board members may refer such matters to staff for factual information or to be placed on the subsequent agenda for consideration. 5. APPROVAL OF MINUTES - FEBRUARY 22, 2010 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. ANNUAL INVESTMENT POLICY REVIEW Overview This item is for the Committee to: Page 1 • 1) Adopt the Annual Investment Policy; 2) Adopt Resolution No. 10-010, "Resolution of the Riverside County Transportation Commission Regarding the Revised Investment Policy" and 3) Forward to the Commission for final action. 7B. QUARTERLY SALES TAX ANALYSIS Overview This item is for the Committee to: Page 16 1) Receive and file the sales tax analysis for Quarter 4 (Q4) 2009; and 2) Forward to the Commission for final action. • Budget and; Implementation Committee April 26, 2010 Page 3 8. PROPOSED BUDGET FOR FISCAL YEAR 2010/11 Overview This item is for the Committee to: Page 23 1) Discuss, review, and provide guidance on the proposed FY 2010/1 1 Budget; and 2) Forward to the Commission to open the public hearing in order to receive input and comments on the proposed FY 2010/11 Budget on May 12, 2010, and on June 9, 2010, and thereafter close the public hearing. 9. RECURRING CONTRACTS FOR FISCAL YEAR 2010/11 Overview This item is for the Committee to: 1) Approve the recurring contracts for FY 2010/11; and 2) Forward to the Commission for final action. Page 43 10. MEMORANDUM OF UNDERSTANDING WITH SOUTHERN CALIFORNIA ASSOCIATION OF GOVERNMENTS FOR THE "RISING STARS IN TRANSIT" INTERNSHIP PROGRAM Page 48 Overview This item is for the Committee to: 1) Approve Memorandum of Understanding (MOU) No. 10-25-089-00 between the Commission and the Southern California Association of Governments (SCAG) for the Rising Stars in Transit - Internships for University Students program; 2) Authorize the Executive Director, pursuant to legal counsel review, to execute the MOU on behalf of the Commission; and 3) Forward to the Commission for final action. • Budget and. Implementation Committee April 26, 2010 Page 4 11. STATE AND FEDERAL LEGISLATIVE UPDATE Overview This item is for the Committee to: Page 61 • 1) Receive and file an update on state and federal legislative activities; 2) Approve the following bill positions: a) SB 1245 (Simitain) - OPPOSE; b)• AB 1760 (Blumenfeld) - WATCH; c) AB 2098 (Miller) - SPONSOR and SUPPORT; d) AB 2620 (Eng) - OPPOSE; and 3) Forward to the Commission for final action. 12. ITEM(S) PULLED FROM CONSENT CALENDAR AGENDA 13. 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. 14. ADJOURNMENT AND NEXT MEETING The next Budget and Implementation Committee meeting is scheduled to be held at 9:30 a.m., Monday, May 24, 2010, Board Chambers, First Floor, County Administrative Center, 4080 Lemon Street, Riverside. RIVERSIDE COUNTY TRANSPORTATION COMMISSION BUDGET AND IMPLEMENTATION COMMITTEE ROLL CALL APRIL 26, 2010 Absent County of Riverside, District :II County of Riverside, District III City of Beaumont City of Blythe City of Calime City of Canyon Lake City of Cathedra City of Coachella City of Desert - City of Hemet City ofLake- Elsinore City of La Quinta City of Murrieta City of Riverside City of Temecula RIVERSIDE COUNTY TRANSPORTATION COMMISSION BUDGET AND IMPLEMENTATION COMMITTEE SIGN -IN SHEET APRIL 26, 2010 NAME AGENCY E MAIL ADDRESS ce__ ( ?Lii6t6us, FJtyei4rqeC rii.a^ I E-z) R-;i ys Orr)-16 >> �//L c)-y//(r� ±iZ "Ar/S DS5.'WI" /(4. 7.c..; S % �e / e.R s a ,J Li8 Ool d �� / , �' _ lq2AfeArr AGENDA ITEM 5 MUTES • • • RIVERS/DE COUNTY TRANSPORTATION COMM/SS/ON BUDGET AND IMPLEMENTATION COMMITTEE Monday, February 22, 2010 MINUTES 1. CALL TO ORDER The meeting of the Budget and Implementation Committee was called to order by Chair Mary Craton at 9:33 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 Roger Berg led the Budget and Implementation Committee in a flag salute. 3. ROLL CALL Members/Alternates Present Roger Berg Mary Craton Rick Gibbs Terry Henderson Bob Magee Scott Matas Greg Pettis Ron Roberts Jeff Stone Members Absent Steve Adams Joseph DeConinck Wallace Edgerton Eduardo Garcia Ray Quinto John Tavaglione 4. PUBLIC COMMENTS There were no requests to speak from the public. 5. APPROVAL OF MINUTES — SEPTEMBER 28, 2009 M/S/C (Henderson/Matas) to approve September 28, 2009, as submitted. Abstain: Magee the minutes of Budget and Implementation Committee Minutes February 22, 2010 Page 2 6. ELECTION OF OFFICERS Chair Craton expressed her gratitude and honor for serving as Chair for 2009. At this time, Chair Craton opened nominations for the slate of officers. Commissioner Terry Henderson, seconded by Commissioner Scott Matas, nominated Greg Pettis for the Chair position for 2010. Commissioner Henderson, seconded by Commissioner Roger Berg nominated Scott Matas for the Vice Chair position for 2010. No other nominations were received. Chair Craton closed the nominations. Commissioners Greg Pettis and Scott Matas were unanimously elected as the Budget and Implementation Committee's Chair and Vice Chair, respectively. At this time, Commissioner Pettis assumed the Chair. Chair Pettis expressed his gratitude to Commissioner Craton for serving as Chair of the Budget and Implementation Committee for 2009. 7. ADDITIONS / REVISIONS There were no additions/revisions to the agenda. 8. 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 (Henderson/Craton) to approve the following Consent Calendar items►: 8A. SINGLE SIGNATURE AUTHORITY REPORT 1) Receive and file the Single Signature Authority Report for the second quarter ended December 31, 2009; and 2) Forward to the Commission for final action. • • • • Budget and Implementation Committee Minutes February 22, 2010 Page 3 8B. QUARTERLY INVESTMENT REPORT 1) Receive and file the Quarterly Investment Report for the quarter ended December 31, 2009; and 2) Forward to the Commission for final action. 9. PROPOSED POLICY GOALS AND OBJECTIVES FOR FISCAL YEAR 2010/11 BUDGET Theresia Trevino, Chief Financial Officer, presented the proposed Budget Policy Goals and Objectives for FY 2010/11, and discussed the following areas: • Development of Budget Policies, Goals and Objectives; • Commission policy goals; • Mobility; • Goods Movement; • System efficiencies; • Environmental stewardship; • Intermodalism and accessibility; • Communications; • Financial and administration policies; • Integration of policies; and • Next steps. Commissioner Craton expressed her gratitude to staff as every year the Commission's Policy Goals and Objectives are apparent and measurable. Commissioner Henderson concurred with Commissioner Craton's comments. In response to Commissioner Henderson's question regarding rail service to the Coachella Valley, Theresia Trevino replied there is a more specific goal in the rail department narrative for rail service. Anne Mayer suggested in the Commission's Policy Goals and Objectives under Support Transportation Choices through Intermodalism and Accessibility, to include the long-range planning efforts for expansion of rail service in both Western Riverside County and the Coachella Valley. M/S/C (Henderson/Craton) to: 1) Approve the proposed Commission Policy Goals and Objectives for the FY 2010/11 Budget; and 2) Forward to the Commission for final action. Budget and Implementation Committee Minutes February 22, 2010 Page 4 10. AMERICAN RECOVERY AND REINVESTMENT ACT UPDATE Shirley Medina, Programming and Planning Manager, provided an update on the American Recovery and Reinvestment Act (ARRA) funds and the proposed "Jobs Bill"/Stimulus II funds. Anne Mayer stated the status of the "Jobs Bill"/Stimulus II is uncertain and expressed the Commission should be prepared to respond to the proposals that will be put on the table. She discussed a letter jointly prepared by several regional agencies and Caltrans to the Congressional representatives regarding proposed revisions to the "Jobs Bill"/Stimulus II, such as an extended duration and administrative relief on processes. Commissioner Rick Gibbs discussed the need for process efficiencies to expedite job creation. M/S/C (Craton/Henderson) to: 1) Receive and file a report on the status of ARRA projects; 2) Approve allocating potential stimulus funding from the federal "Jobs Bill" to projects that are currently federalized and can meet deadline requirements for the first 50% of the funds, with first priority to State Transportation Improvement Program projects (STIP), second priority to state highway projects, and third priority to local road projects; and 3) Forward to the Commission for final action. 11. 2010 CONGESTION MANAGEMENT PROGRAM Shirley Medina presented the 2010 Riverside County Congestion Management Program (CMP), highlighting the following areas: • CMP history and program description; • Riverside County CMP; • CMP System/Level of Service (LOS) Western County, Eastern County, and Western County arterials; • LOS deficiency results; and • Reviews/approvals. In response to Commissioner Craton's question on determining a LOS, Shirley Medina replied the traffic counts are received from the Caltrans' Traffic Management Center (TMC) sites, Smart Call Box sites, and floating car runs. • • • • Budget and Implementation Committee Minutes February 22, 2010 Page 5 Anne Mayer discussed various traffic monitoring systems and projections. She explained Robert Yates, Multimodal Services Director, has taken the lead to work with Ca[trans to evaluate alternative funding sources to implement traffic monitoring systems for the entire urban network. She stated this will provide an improved source of information on traffic counts for planning purposes and help manage real time traffic expectations of commuters. M/S/C (Henderson/Roberts) to: 1) Approve the 2010 Congestion Management Program (CMP); and 2) Forward to the Commission for final action. 12. FISCAL YEAR 2010 APPROPRIATIONS - ALAMEDA CORRIDOR EAST - AUTO CENTER DRIVE AND STREETER AVENUE GRADE SEPARATIONS Tanya Love, Goods Movement Manager, presented funding requests from the city of Corona (Corona) in support of the Auto Center Drive grade separation project and the city of Riverside (Riverside) in support of Streeter Avenue Grade Separation project for the FY 2009/10 Appropriations for the Alameda Corridor East (ACE). Commissioner Craton referred to Attachment - Appendix B and asked why the Auto Center Drive grade separation project is not receiving a railroad contribution from Burlington Northern Santa Fe Railway (BNSF). Tanya Love replied it is extremely difficult to receive funding from the railroads especially when freight is down and explained the process to obtain railroad contributions. Anne Mayer discussed the challenges of funding grade separations. M/S/C (Henderson/Craton) to: 1) Allocate $674,500 to Corona in support of the Auto Center Drive grade separation project; 2) Allocate $674,500 to Riverside in support of the Streeter Avenue grade separation project; and 3) Forward to the Commission for final action. 13. ITEM(S) PULLED FROM CONSENT CALENDAR AGENDA There were no items pulled from the Consent Calendar. Budget and Implementation Committee Minutes February 22, 2010 Page 6 14. COMMENTS BY COMMISSIONERS/STAFF 14A. Commissioner Scott Matas announced the I-10/Bob Hope Drive/Ramon Road and 1-10/Palm Drive/Gene Autry Trail interchanges groundbreaking event will be held on February 26 at 10:00 a.m. 15. ADJOURNMENT There being no further business for consideration by the Budget and Implementation Committee, the meeting was adjourned at 10:12 a.m. The next meeting of the Budget and Implementation Committee is scheduled for March 22, 2010 at 9:30 a.m. Respectfully submitted, v Jennifer Harmon Clerk of the Board • • AGENDA ITEM 7A • RIVERSIDE COUNTY TRANSPORTATION COMMISSION DATE: April 26, 2010 TO: Budget and Implementation Committee FROM: Theresia Trevino, Chief Financial Officer THROUGH: John Standiford, Deputy Executive Director SUBJECT: Annual Investment Policy Review STAFF RECOMMENDATION: This item is for the Committee to: 1) Adopt the Annual Investment Policy; 2) Adopt Resolution No. 10-010, "Resolution of the Riverside County Transportation Commission Regarding the Revised Investment Policy'; and 3) Forward to the Commission for final action. BACKGROUND INFORMATION: Section XIV of the Investment Policy requires an annual investment policy review and specifically states that the "Chief Financial Officer shall annually render to the Board a statement of investment policy, which the Board must consider at a public meeting. Any changes to the policy shall also be considered by the Board at a public meeting." Based on a review of the Investment Policy approved by the Commission on May 13, 2009, and consideration of changes to the California Government Code (Code) as of January 1, 2010, staff in consultation with staff from the County Treasurer's Office has determined that minor changes should be made to: 1) minimize exposure to individual non-U.S. Government or non -Federal Agency issuers, including direct and indirect commitments related to liquidity support, and 2) adjust limitations on U.S. corporate debt and commercial paper based on investment risks. Staff is recommending adoption of Resolution No. 10-010 and Investment Policy. Attachments: 1) Resolution No. 10-010 2) Investment Policy Agenda Item 7A 1 • • • RESOLUTION NO. 10-010 RESOLUTION OF THE RIVERSIDE COUNTY TRANSPORTATION COMMISSION REGARDING THE REVISED INVESTMENT POLICY WHEREAS, the Riverside County Transportation Commission (the "Commission") currently retains the authority to add, delete or otherwise modify the Commission's policies and procedures. NOW, THEREFORE, the Riverside County Transportation Commission does hereby resolve as follows: Section 1. The Riverside County Transportation Commission hereby adopts the Investment Policy, as revised on May 12, 2010, and attached as Exhibit A. APPROVED AND ADOPTED this 12`h day of May, 2010. Bob Buster, Chair Riverside County Transportation Commission ATTEST: Jennifer Harmon Clerk of the Board • • • INVESTMENT POLICY 1. Introduction The purpose of this document is to identify policies and procedures that enhance opportunities for a prudent and systematic investment program and to organize and formalize investment -related activities. II. Scope It is intended that this Policy cover all funds (except retirement funds) and investment activities under the direction of the Commission. III. Delegation of Authority Pursuant to the Commission's Administrative Code, the Board's management responsibility for the investment program is hereby delegated for a one-year period to the Executive Director who shall monitor and review all investments for consistency with this investment policy. Subject to review, the Board may renew the delegation of authority pursuant to this section each year. The Executive Director may delegate these duties to his designee ("Chief Financial Officer"). The Commission may delegate its investment decision making and execution authority to an investment advisor. The advisor shall follow this Policy and such other written instructions as are provided. IV. Prudence All persons authorized to make investment decisions on behalf of the Commission are subject to the prudent investor standard. Investments shall be made with care, skill, prudence and diligence under circumstances then prevailing, including, but not limited to, the general economic conditions and the anticipated needs of the Commission that a prudent person acting in a like capacity and familiarity with those matters would use in the conduct of funds of a like character and with like aims, to safeguard the principal and maintain the liquidity needs of the Commission. Authorized individuals acting in accordance with this Policy and written procedures and exercising due diligence shall be relieved of personal Revised May 1,312, 24)492010 3 responsibility for an individual security's credit risk or market price changes, provided deviations from expectations are reported in a timely fashion. V. Objective The Commission's primary investment objectives, in priority order, shall be: 1. Safety. Safety of principal is the foremost objective of the investment program. Investments of the Commission shall be undertaken in a manner that seeks to ensure preservation of capital in the portfolio. 2. Liquidity. The investment portfolio of the Commission will remain sufficiently liquid to enable the Commission to meet its cash flow requirements. 3. Retum on Investment. The investment portfolio of the Commission shall be designed with the objective of maximizing return on its investments, but only after ensuring safety and liquidity. In order to maximize return on its investments, the Commission seeks an active rather than passive management of portfolio assets. The Commission may from time to time sell securities that it owns in order to better reposition its portfolio assets in accordance with updated cash flow schedules, yield curve optimizations, yield opportunities existing between market sectors, or simply market timing. VI. Investments California Government Code Section 53601 governs the investments permitted for purchase by the Commission. Within the investments permitted by Code, the Commission seeks to further restrict eligible investments to the investments listed in Section V1.1 below. Percentage limitations, where indicated, apply at the time of purchase. Percentage holdings with any one non-U.S. Ggovernmental issuer or non -Federal Agency issuer are further restricted to a maximum of 10% (direct and indirect commitments). Rating requirements where indicated, apply at the time of purchase. In the event a security held by the Commission is subject to a rating change that brings it below the minimum specified rating requirement, the Chief Financial Officer shall notify the Board of the change. The course of action to be followed will then be decided on a case -by -case basis, considering such factors as the reason for the rate drop, prognosis for recovery or further rate drops, and the market price of the security. Revised May -1412, 24842010 • • • 4 • • • 1. Eligible Investments A. U.S. Govemment Issues. United States Treasury notes, bonds, bills, or certificates of indebtedness, or those for which the faith and credit of the United States are pledged for the payment of principal and interest. B. Federal Agency Securities. Federal agency or United States government -sponsored enterprise obligations, participations, or other instruments, including those issued by or fully guaranteed as to principal and interest by federal agencies or United States government -sponsored enterprises. C. Municipal Bonds. Registered treasury notes or bonds of any of the other 49 United States, in addition to California, payable solely out of the revenues from a revenue -producing property owned, controlled, or operated by a state or by a department, board, agency or authority of any of the other 49 United States, in addition to California. Such securities must have ratings from at least two of three ratings as follows: "Aa3" by Moody's Investors Service, or "AA-" by Standard & Poor's, or "AA-" by FitchRatings; or as otherwise approved by the Commission. Registered general obligation treasury notes or bonds of any of the 50 United States. Such securities must have ratings from two of three ratings as follows: at least "A2" by Moody's Investors Service, or "A" by Standard & Poor's, or "A" by FitchRatings; or as otherwise approved by the Commission. Adjustable rate registered treasury notes or bonds of any of the 50 United States, including bonds payable solely out of the revenues from a revenue -producing property owned, controlled, or operated by a state or by a department, board, agency or authority of any of the other 49 United States, in addition to California. Such securities must have ratings from at least two of three ratings as follows: "P-1 " by Moody's Investors Service, or "A-1 +" by Standard & Poor's, or "F-1 +_" by FitchRatings; or as otherwise approved by the Commission. Adjustable rate notes or bonds warrants, or other evidences of indebtedness of any local agency within the State of California with a minimum rating of either "P-1" by Moody's Investors Revised May -1312, 244092010 Service, or "A-1 +" by Standard & Poor's, or "F-1 +" by FitchRatings, including bonds, notes, warrants, or other evidences of indebtedness payable solely out of the revenues from a revenue -producing property owned, controlled, or operated by either the local agency, a department, board, agency, or authority of the local agency, or of any local agency within this state. Taxable or tax-exempt bonds, notes, warrants, or other evidences of indebtedness of any local agency within the State of California with a minimum rating of either "Aa3" by Moody's Investors Service, or "AA-" by Standard & Poor's, or "AA-" by FitchRatings (the minimum rating shall apply to the local agency, irrespective of any credit enhancement), including bonds, notes, warrants, or other evidences of indebtedness payable solely out of the revenues from a revenue -producing property owned, controlled, or operated by either the local agency, a department, board, agency, or authority of the local agency, or of any local agency within this state. Investments in municipal bonds are further limited to 15% of surplus funds. D. Repurchase Agreements. Repurchase agreements are to be used solely as short-term investments not to exceed 30 days. The Commission may enter into repurchase agreements with primary government securities dealers rated "A" or better by two nationally recognized rating services. Counterparties should also have (i) a short-term credit rating of at least A-1 /P- 1; (ii) minimum assets and capital size of $25 billion in assets and $35O million in capital; (iii) five years of acceptable audited financial results; and (iv) a strong reputation among market participants. The following collateral restrictions will be observed: Only U.S. Treasury securities or Federal Agency securities, as described in V.1 A and B, will be acceptable collateral. All securities underlying repurchase agreements must be delivered to the Commission's custodian bank versus payment or be handled under a properly executed tri-party repurchase agreement. The total market value of all collateral for each repurchase agreement must equal or exceed 102 percent of the total dollar value of the money invested by the Commission for the term of the investment. For any repurchase agreement with a term of Revised May -1412, 24092010 • • • 6 • • more than one day, the value of the underlying securities must be reviewed on an on -going basis according to market conditions. Market value must be calculated each time there is a substitution of collateral. The Commission or its trustee shall have a perfected first security interest under the Uniform Commercial Code in all securities subject to repurchase agreement. The Commission shall have properly executed a PSA agreement with each counterparty with which it enters into repurchase agreements. E. U.S. Corporate Debt. Medium -term notes, defined as all corporate and depository institution securities with a maximum remaining maturity of five years or less, issued by corporations organized and operating within the United States or depository institutions licensed by the United States or any state and operating within the United States. Eligible investment shall be rated "AA" or better by one or more nationally recognized rating service. Investments in U.S. Corporate Debt are further limited to 4020% of surplus funds. F. Commercial Paper. Commercial paper rated in the highest category by one or more nationally recognized statistical rating organization (NRSRO). The entity that issues the commercial paper shall meet all of the following conditions in either paragraph (1) or paragraph (2): (1)The entity meets the following criteria: (A) Is organized and operating in the United States as a general corporation. (B) Has total assets in excess of five hundred million dollars 0500,000,00O). (C) Has debt other than commercial paper, if any, that is rated "A" or higher by a NRSRO. (2) The entity meets the following criteria: (A) Is organized within the United States as a special purpose corporation, trust, or limited liability company. (B) Has program -wide credit enhancements, including, but not limited to, over collateralization, letters of credit, or surety bond. (C) Has commercial paper that is rated "A-1 " or higher, or the equivalent, by a NRSRO. Purchases of eligible commercial paper may not exceed 270 days maturity nor represent more than 10 percent of the outstanding paper of an issuing corporation. Investments in commercial paper are limited to a maximum of 2530% of Revised May 4412, 3fl092010 surplus funds. G. Banker's Acceptances. Banker's acceptances issued by domestic or foreign banks, which are eligible for purchase by the Federal Reserve System. Purchases of banker's acceptances may not exceed 180 days maturity. Eligible banker's acceptances are restricted to issuing financial institutions with short-term paper rated in the highest category by one or more nationally recognized rating service. Investments in banker's acceptances are further limited to 40% of surplus funds with no more than 30% of surplus invested in the banker's acceptances of any one commercial bank. H. Money Market Mutual Funds. Shares of beneficial interest issued by diversified management companies that are money market funds registered with the Securities and Exchange Commission under the Investment Company Act of 1940 (15 U.S.C. Sec. 80a-1, et seq.) and that invest solely in U.S. treasuries, obligations of the U.S. Treasury, and repurchase agreements relating to such treasury obligations. The Commission may invest in shares of beneficial interest issued by accompany shall have met either of the following criteria: (1) Attained the highest ranking or the highest letter and numerical rating provided by not less than two nationally recognized rating services. (2) Retained an investment adviser registered or exempt from registration with the Securities and Exchange Commission with not less than five years' experience managing money market mutual funds with assets under management in excess of five hundred million dollars ($ 500, 000, 000) . The purchase price of shares of beneficial interest purchased pursuant to this subdivision shall not include any commission that the companies may charge. Investments in Money Market Mutual Funds are further limited to 20% of surplus funds. I. Riverside County Pooled Investment Fund ("RCPIF"). The Commission may invest in the Riverside County Pooled Investment Fund. As on -going due diligence, the Chief Financial Officer shall obtain the information listed below: • A description of eligible investment securities and a written statement of investment policy. Revised May -6312, 20092010 8 • • • A description of the interest calculation, the frequency of interest distributions, and the treatment of gains and losses in the portfolio. • A description of how often the securities are priced, how the securities are safeguarded, and the audit arrangements. • A description of who may invest in the program, how often they may invest, and what size deposits and withdrawals are allowed. • A schedule for receiving statements and portfolio listings. • A fee schedule, and when and how fees are assessed. • The composition of the investment fund for each reporting period. J. State of Califomia Local Agency Investment Fund ("LAIF"). The Commission may invest in LAIF. As on -going due diligence, the Chief Financial Officer shall obtain the information listed below: • A description of eligible investment securities and a written statement of investment policy. • A description of the interest calculation, the frequency of interest distributions, and the treatment of gains and losses in the portfolio. • A description of how often the securities are priced, how the securities are safeguarded, and the audit arrangements. • A description of who may invest in the program, how often they may invest, and what size deposits and withdrawals are allowed. • A schedule for receiving statements and portfolio listings. • A fee schedule, and when and how fees are assessed. • The composition of the investment fund for each reporting period. K. Certificates of Deposit. Negotiable Certificates of Deposit (NCD's): NCDs are money market instruments issued by a bank. They specify that a sum of money has been deposited, payable with interest to the bearer of the certificates on a certain date. NCDs are issued by nationally or state chartered bank or state or federal savings and loan association. All purchases must be from institutions rated by a nationally recognized rating organization, as designated by the U.S. Securities and Exchange Commission. The maturity of Revised May 4-312, 20092010 9 NCDs shall not exceed 180 days to maturity, and purchases of NCDs shall not exceed fifteen percent (15%) of the Commission's investment portfolio. NCDs shall be evaluated in terms of the credit worthiness of the issuing institution, as these deposits are uninsured and uncollateralized promissory notes. FDIC -insured Certificates of Deposit: The principal amount of the investment must be federally insured through the Federal Deposit Insurance Corporation (FDIC). No more than the prevailing FDIC insured coverage amount may be invested with any one deposit. Certificates of Deposit placed through the Certificate of Deposit Account Registry Service (CDARS) shall be considered fully insured, assuming that the total amount invested with any participating bank is limited to the prevailing FDIC insured coverage amount. Interest on the principal must be paid to the Commission at least annually. The placement of Certificates of Deposit with local banks that qualify in accordance with Government Code section 53601(h) is encouraged. The Commission, at its discretion, may invest a portion of its surplus funds in certificates of deposit at a commercial bank, savings bank, savings and loan association, or credit union using a private sector entity to assist in the placement of such certificates, provided that it complies with Government Code Section 53601.8. Such investments may not exceed in total twenty percent (20%) of the Commission's funds invested pursuant to Government Code Sections 53601.8, 53635.8 and 53601, and shall have a maximum maturity of one year from the date of the deposit. Collateralized Certificates of Deposit: For investments exceeding $100,000, there will be a waiver of collateral for the first $100,000 deposited and protected by FDIC insurance. The remainder of the deposit shall be fully collateralized by U.S. Treasury and Federal Agency securities having maturities less than five years. The District must receive written confirmation that these securities have been pledged in repayment of the time deposit. The securities pledged as collateral must have a current market value greater than the dollar amount of the deposit in keeping with the ratio requirements specified in Section 53652 of the Government Code. Additionally, a statement of the collateral shall be provided to the Commission on a monthly basis. Such investments may not exceed in total fifteen percent (15%) of the Commission's funds invested Revised May 4412, 24492010 10 • pursuant to Government Code Sections 53601.8, 53635.8 and 53601, and shall have a maximum maturity of one year from the date of the deposit. L. Time Deposits. Federal Deposit Insurance Corporation insured money market savings accounts or time deposits which are deposited through depository institutions which are participants of the Money Market Insured Deposit Account Service ("MMIDAS"). 2. Eligible Investments for Bond Proceeds Bond proceeds shall be invested in securities permitted by the applicable bond documents. If the bond documents are silent as to permitted investments, bond proceeds will be invested in securities permitted by this Policy. With respect to maximum maturities, the Policy authorizes investing bond reserve fund proceeds beyond the five years if prudent in the opinion of the Chief Financial Officer. 3. Ineligible Investments As provided in California Government Code Section 53601.6, the Commission shall not invest any funds in inverse floaters, range notes, mortgage derived interest -only strips or in any security that could result in zero interest accrual if held to maturity. The purchase of any security not listed in Section V1.1 above, but permitted by the California Government Code, is prohibited unless the Board approves the investment either specifically or as a part of an investment program approved by the Board. VII. Maximum Maturities Maturities of investments will be selected to provide necessary liquidity, minimize interest rate risk, and maximize earnings. Current and expected yield curve analysis will be monitored and the portfolio will be invested accordingly. Because of inherent difficulties in accurately forecasting cash flow requirements, a portion of the portfolio should be continuously invested in readily available funds. Where this Policy does not specify a maximum remaining maturity at the time of the investment, no investment shall be made in any security, other Revised May 1-312, 2O[}92010 11 than a security underlying a repurchase or reverse repurchase agreement authorized by this section, that at the time of the investment has a term remaining to maturity in excess of five years, unless the Board has granted express authority to make that investment either specifically or as a part of an investment program approved by the Board no less than three months prior to the investment. VIII. Performance Standards The Chief Financial Officer shall continually monitor and evaluate the portfolio's performance. A comparison of the portfolio's performance against a performance benchmark shall be included in the Chief Financial Officer's quarterly report. The Chief Financial Officer shall select an appropriate, readily available market index to use as a performance benchmark. IX. Reporting The Chief Financial Officer shall prepare and provide to the Board and the Executive Director, within 30 days following the end of the quarter, a portfolio report, which includes the following information: • Type of investment • Name of issuer • Date of maturity • Date of purchase • Par value • Original purchase cost • Call date (if applicable) • Current market value of securities • Unrealized market value gain/loss • Coupon rate, if applicable • Yield to maturity • Credit quality, as determined by one or more nationally recognized credit rating services, of each investment • Average duration of portfolio • Listing of all investment transactions during the quarter • A statement that the portfolio complies with the investment policy, or the manner in which the portfolio is not in compliance • A statement denoting the ability of the Commission to meet its liquidity requirements for the next six months, or provide an explanation as to why sufficient money shall, or may not be, available. Revised May 1412, 20 42010 • 12 X. Investment Procedures The Chief Financial Officer, as the Board's designee, is responsible for ensuring compliance with the Commission's investment policies and establishing written procedures and internal controls for the operation of the investment program. No person may engage in investment transactions except as provided under the terms of this Policy and the written procedures established by the Chief Financial Officer. The written procedures should address: delegation of authority to subordinate staff members, control of collusion, separation of transaction authority from accounting and record keeping, written confirmations of transactions, reconciliation of custody statements, and wire transfer procedures and agreements. An independent analysis by an external auditor shall be conducted annually to review internal control, account activity, and compliance with policies and procedures. XI. Authorized Broker Dealers and Financial Institutions The Chief Financial Officer shall maintain a list of authorized broker/dealers and financial institutions which are approved for investment purposes. It shall be the Commission's policy to purchase securities only from those authorized institutions and firms. Separate lists shall be maintained for broker/dealers and financial institutions approved for repurchase agreements and those approved for the purchase of other securities. If an investment advisor is used, they may use their own list of approved broker/dealers and financial institutions for investment purposes. To be eligible, a firm must meet the following minimum criteria: (i) an institution licensed by the state as a broker -dealer, or from a member of a federally regulated securities exchange, from a national or state -chartered bank, from a federal or state association or from a brokerage firm designated as a primary government dealer by the Federal Reserve bank; and Ili) all broker/dealer firms and individuals must be properly registered with the NASD and/or SEC to transact business in the relevant geographic locations and product sectors. In addition, counterparties for Repurchase Agreements shall be limited to primary government securities dealers rated "A" or better by two nationally recognized rating services. Counterparties shall also have (i) a short-term credit rating of at least A-1/P-1; (ii) minimum assets and capital size of $25 billion in assets and $350 million in capital; (iii) five years of acceptable audited financial results; and (iv) a strong reputation among market participants. The Chief Financial Officer shall select broker/dealers and other financial institutions on the basis of the firm's expertise and credit worthiness. The Commission shall annually send a copy of the current investment policy to all Revised May 4412, 20092010 13 dealers approved to do business with the Commission. Each broker dealer or financial institution that has been authorized by the Commission shall be required to submit and annually update a Broker/Dealer Questionnaire which includes the firm's most recent financial statements. The Chief Financial Officer shall maintain a file for each firm approved for investment purposes, which includes the most recent Broker/Dealer Questionnaire. XII. Safekeeping and Custody To protect the Commission's assets, all securities owned by the Commission shall be held in safekeeping in the Commission's name by a third party bank trust department, acting as agent for the Commission under the terms of a custody agreement executed by the bank and the Commission. All securities will be received and delivered using standard delivery versus payment (DVP) procedures; the Commission's safekeeping agent will only release payment for a security after the security has been properly delivered. Physical delivery securities shall be avoided whenever possible, as book entry securities are much easier to transfer and account for since actual delivery of a document never takes place. In addition, delivered securities must be properly safeguarded against loss or destruction. The potential for fraud and loss increases with physically delivered securities. XIII. Ethics and Conflicts of Interest The Commission adopts the following policy concerning conflicts of interest: 1. Officers and employees involved in the investment process shall refrain from personal business activity that could conflict with proper execution of the investment program or which could impair their ability to make impartial investment decisions. 2. 2. Officers and employees involved in the investment process shall disclose any material financial interest in any financial institution that conducts business with the Commission, and they shall further disclose any large personal financial/investment positions that could be related to the performance of the Commission's portfolio. 3. Officers shall refrain from undertaking personal investment transactions with the same individual with whom business is conducted on behalf of the Commission. Revised May 1412, 2-0092010 • • • 14 • • XIV. Investment Policy Review The Chief Financial Officer shall annually render to the Board a statement of investment policy, which the Board must consider at a public meeting. Any changes to the policy shall also be considered by the Board at a public meeting. Revised May 1412, 244042010 15 AGENDA ITEIVF7B. • • • RIVERS/DE COUNTY TRANSPORTATION COMMISSION DATE: April 26, 2010 TO: Budget and Implementation Committee FROM: Theresia Trevino, Chief Financial Officer THROUGH: John Standiford, Deputy Executive Director SUBJECT: Quarterly Sales Tax Analysis STAFF RECOMMENDATION: This item is for the Committee to: 1) Receive and file the sales tax analysis for Quarter 4 (Q4) 2009; and 2) Forward to the Commission for final action. BACKGROUND INFORMATION: At its December 2007 meeting, the Commission awarded an agreement to MuniServices, LLC (MuniServices) for quarterly sales tax reporting services plus additional fees contingent on additional sales tax revenue generated from the transactions and use tax (sales tax) audit services. The services performed under this agreement pertain to only the Measure A sales taxes. Since the commencement of these services, MuniServices has submitted an audit update, which reported findings that have been generated and submitted to the State Board of Equalization (SBOE) for review and determination of errors in sales tax reporting related to 117 businesses. Through Q3 2009 for July through September 2009, the SBOE has approved corrections for 71 of these accounts for a total sales tax revenue recovery of $598,746. The status of the findings through Q4 2009, for October through December 2009 should be available by the May Commission meeting. If the SBOE concurs with the error(s) for the remaining claims, the Commission would receive additional revenues; however, the magnitude of the value of the remaining findings was not available. It is important to note that while the recoveries of additional revenues will be tangible, it will not be sufficient to alter the overall trend of sales tax revenues. Additionally, MuniServices has provided the Commission with the quarterly sales tax summary report for the fourth quarter of calendar 2009 for October through December. Most of the Q4 2009 Measure A sales taxes were received by the Commission in the first quarter of calendar 2010, during January through March due to a lag in the sales tax calendar. The summary section of the Q4 2010 report Agenda Item 7B 16 is included as an attachment to the staff report and includes an overview of California sales tax receipts, a performance review, a summary of the top 25 sales tax contributors, historical sales tax amounts, sales tax by business category, economic trends for a significant business category, and results. The following observations were noted in the Q4 2010 report: • The decline in sales tax revenues for Riverside County was less for Q3 2009 (-5.7%) compared to Q2 2009 (-16.6%), indicating a slowing in the economic decline in Riverside County as well as the state. The current sales tax level may likely be the new benchmark. • Over the last two-year period, the Q4 2009 sales tax levels were at or near the low points for all of the top 10 economic segments. • Over the last two-year period, the Q4 2009 sales tax levels for new auto sales, service stations, and building materials both retail and wholesale showed a significant variance from the high point, indicating that these segments continue to have been significantly affected by the slowdown in the economy and changes in gas prices. • Over the last two-year period, the high and low points related to sales tax levels in Riverside County for apparel stores have no significant differentiation. • Department stores, restaurants, and service stations continue to represent the three largest economic segments for Riverside County. • The transportation and construction economic categories have declined approximately 35.5% and 43.4%, respectively, in the benchmark year Q4 2009 compared to the benchmark year Q4 2007. Staff continues to monitor monthly sales tax receipts and other available economic data to determine the need for any additional adjustment to the revised revenue projections in FY 2009/10, as well as the final development for the budget for FY 2010/11. Staff will utilize the forecast scenarios included with the complete report and recent trends in such projections. Attachment: Sales Tax Analysis for Q4 2009 Agenda Item 7B 17 • • District of Riverside Co RCTC Sales Tax Digest Summary FIRST Quarter Collection of FOURTH Quarter Sales Quarter 4, 2009 CAUFORNIA OVERVIEW Economic news from 4tb Quarter 2009 indicated a slowing in the economic decline. California hopes for the economy to stabilize during 2010, yet understands growth will come slowly. The current sales tax baseline is the new benchmark moving forward. Continued high unemployment, consumer uncertainty and housing problems continue to hold back growth and led to a statewide sales decline of —6.0% for the quarter compared to the same quarter a year ago. Northern California sales were down —6.6% for the quarter. Southern California sales were down —5.6% for the quarter. As for the District of Riverside Co Rctc, sales changed by -5.7%. General Retail Over the last year, retail consumers, led by the unemployed or underemployed, made a fundamental shift in the way they approach purchases. This new normal, lower level of consumer spending is not expected to change for a very long time. Retailers will need to change the way they deliver goods and in many cases will need to reduce inventories to accommodate reduced spending by consumers. Food Products Sales of Food Products continue to search for secure footing. Consumers are downgrading restaurant choices and more frequently cooking at home. Restaurants at all levels are lowering their price points with smaller meals or weekly specials. Grocery stores continue to experiment with various formats and price points with the larger chains reducing prices to compete with Wal-Mart and Target. Transportation Services Stations and New Auto Sales saw positive growth in the Transportation sector for 4`h Quarter 2009 compared to 4`" Quarter 2008. Most of the growth is attributable to the extremely poor quarter the industry experienced last year. Construction Sales from construction activities will continue to seek for the market bottom. Banks continue to curb lending for residential housing and commercial construction. Continued economic uncertainty will lead home owners to delay home improvement purchases. Business to Business Businesses in the Business -to -Business sector continued to slide during 4t Quarter 2009. Business sales slowing, businesses closing and businesses leaving Califomia to take advantage of more business- www.MuniServices.com (800) 800-8181 page 1 18 District of Riverside Co RCTC friendly environments took a toll on the sector. Job losses and corresponding declines in productivity add hurdles to the Business -to -Business recovery. Net Cash Receipts Analysis Local Collections Share of County Pool 0.0% Share of State Pool 0.0% SBE Net Collections Less: Amount Due County 0.0% Less: Cost of Administration Net 4Q2009 Receipts Net 4Q2008 Receipts Actual Percentage Change $30,332,347 0 0 30,332,347 .00 (365,500) 29,966,847 31,761,845 -5.7% Business Activity Performance Analysis Local Collections Less: Payments for Prior Periods Preliminary 4Q2009 Collections Projected 4Q2009 Late Payments Projected 4Q2009 Final Results Actual4Q2008 Results Projected Percentage Change HISTORICAL CASH COLLECTIONS ANALYSIS BY QUARTER i $30,332,347 (2,034,679) 28,297,668 1,013,515 29,311,183 31,705,010 -7.6% Net Receipts S40,000 S35,000 S30,000 S25,000 S20,000 S15,000 S10,000 S5,000 So (in thousands of S) 3Q 2007 4Q 2007 1Q2008 2Q 2008 34)2008 4Q 2008 IQ2009 2Q 2009 3Q 2009 4Q 2009 +..SHOE Adm in Fees Due I J MINN e1 Receipts S450 S400 S350 S300 $250 S200 S150 S100 S50 So Ad min Fees www.MuniServices.com (800) 800-8181 Page 2 19 • District of Riverside Co RCTC TOP 25 SALES/USE TAX CONTRIBUTORS The following list identifies Riverside Co RCTC's Top 25 Sales/Use Tax contributors. The list is in alphabetical order and represents the year ended 4th Quarter 2009. The Top 25 Sales/Use Tax contributors generate 23.8% of Riverside Co RCTC's total sales and use tax revenue. ALBERTSON'S FOOD CENTERS BEST BUY STORES CHEVRON SERVICE STATIONS CIRCLE K FOOD STORES COSTCO WHOLESALE DEPT OF MOTOR VEHICLES HOME DEPOT 1 C PENNEY COMPANY JACK IN THE BOX RESTAURANTS K MART STORES KOHL'S DEPARTMENT STORES LOWE'S HOME IMPROVEMENT MACY'S DEPARTMENT STORE MOBIL SERVICE STATIONS RALPH'S GROCERY COMPANY RITE AID DRUG STORES ROSS STORES SAM'S CLUB SEARS ROEBUCK & COMPANY SHELL SERVICE STATIONS STATER BROS MARKETS TARGET STORES VERIZON WIRELESS WAL MART STORES WALGREEN'S DRUG STORES HISTORICAL SALES TAX AMOUNTS The following chart shows the sales tax level for the year ended 4th Quarter 2009, the highs, and the lows for each segment over the last two years. $2 0,0 00 S 18,000 S 16,000 S 14,000 S 12,000 S 10,000 S8,000 S6,000 S4,000 S2,000 Se (in thousands of S) o Qot9v macs;" 1cs P o, , `moo �A 0 8 y ti1+ JSob v'QA PQQ ' 1♦4Q2009 � •HigY meLow loaJ46A �c r o www.MuniServices.com (800) 800-8181 Page 3 20 District of Riverside Co RCTC ANNUAL SALES TAX BY BUSINESS CATEGORY - (in th ds of S)r, i I i i 40 2009 3Q 21109 2Q 2109 4Q 2000 3Q2000 2 Q 2018 IQ 2000 4Q 2007 3Q2007 — 35.S35 s77: ','[' h �rr- 3 _, '; - 25,36.5 L2:4454d,'(+.-` t . . i- '27.►46 .•,, Fr�+�w?LLh+j, ',, :' „' 33,206 .`�� }-,I+'i ®use ' - _- 36,329 7 Lc .__. 00 ��`-� w— 1 33..53 0 i`" l c jj,yy��'r� .:IV I=-39,530 �y. .�..�Xy .:._ L "�', ,i-;e > 39.314 7.;.;'�.`a 'k,_.„ 7tt SO S20,000 S40,000 S60,000 580,000 SI00,000 S120,000 5140,000 5.160,000 5180,000 MC Retail OAF sod Prodatss MT rnosOotistion ®C so sltnellao OB esiness To eosi•ess MIN istellan eons FIVE-YEAR ECONOMIC TREND: General Retail S14,000 S12,000 S 10,000 58,000 S6,000 S4.000 S2,000 SO EEEa a a a N M C (in thousands of S) El "s RE' RE s s§ a ,5 Fr 8 a � . � 8 a www.MuniServices.com (800) 800-8181 21 Page 4 District of Riverside Co RCTC 3rd QUARTER 2009 FINAL RESULTS Local Net Cash Collections Less: Pool Amounts Less: Prior quarter Payments Add: Late Payments Local Net Economic Collections after Adjustments Percent Change from 3`d Quarter 2008 MUNISERVICES' ON -GOING AUDIT RESULTS This Quarter $71,450 Total to Date $598,746 $27,050,242 ($-365,500) ($2,117,150) $1,725,596 $27,024,188 DOWN BY 16.3% www.Muni.Services.com (800) 800-8181 22 Page 5 AGENDA ITEM 8 • • RIVERSIDE COUNTY TRANSPORTATION COMMISSION DATE: April 26, 2010 TO: Budget and Implementation Committee FROM: Theresia Trevino, Chief Financial Officer Michele Cisneros, Accounting and Human Resources Manager THROUGH: Anne Mayer, Executive Director SUBJECT: Proposed Budget for Fiscal Year 2010/11 STAFF RECOMMENDATION: This item is for the Committee to: 1) Discuss, review, and provide guidance on the proposed FY 2010/11 Budget; and 2) Forward to the Commission to open the public hearing in order to receive input and comments on the proposed FY 2010/11 Budget on May 12, 2010, and on June 9, 2010, and thereafter close the public hearing. BACKGROUND INFORMATION: Staff has completed the initial budget preparation process, and attached is an executive summary for the proposed FY 2010/11 Budget. The policy goals and objectives approved by the Commission on March 10, 2010, were the basis of this budget. The policy goals and objectives considered during the preparation of the budget relate to mobility initiatives, goods movement, improved system efficiencies, environmental stewardship, economic development, intermodalism and accessibility, and public and agency communications as well as financial and administration policies. Staff will present highlights of significant items included in the budget and is seeking review of and input on the proposed FY 2010/11 Budget. Based on input received from Commissioners, staff will update the document, as necessary, and present the proposed budget for the opening of the public hearing and for the Commission's review on May 12, 2010. As a result of input received from the public and the Commission, staff will make any necessary changes to the budget document for final review, close of the public hearing, and adoption at the June 9, 2010 Commission meeting. The executive summary document contains a summary of all departmental budgets and summarizes the information for the entire Commission. The department Agenda Item 8 23 budgets present the goals and objectives, the resources needed to accomplish the goals, and the appropriations required to accomplish the tasks. Staff has also included the fund budgets that provide the budgeted revenues and expenditures from a fund perspective. Funding for transit operating and capital expenditures has not been included in the budget as the draft Short Range Transit Plans (SRTPs) are still under review. The adjustment for these transit expenditures will be included in the final budget document presented in June 2010. At the June 9, 2010 Commission meeting, staff will present the entire budget with detailed narratives. A summary of the proposed FY 2010/11 Budget is as follows: FY Revenues and other financing sources: Sales taxes -Measure A and Local Transportation Funds Reimbursements (federal, state, and other) Transportation Uniform Mitigation Funds, including reimbursements State Transit Assistance Other revenues Interest on investments Debt proceeds Transfers in Total revenues and other financing sources Expenditures and other financing uses: Personnel salary and fringe benefits Professional services Support services Projects and operations Capital outlay Debt service (principal, interest and costs of issuance) Transfers out Total expenditures and other financing uses Excess (deficiency) of revenues and other financing sources over (under) expenditures and other financing uses Beginning fund balance (projected) 2010/11 Budget 174,809,900 57,359,000 8,300,000 0 178,000 2,658,500 185,000,000 188,375,200 616, 680, 600 6,225,300 18,338,400 6,465,500 366, 648, 300 587,600 105,950,000 188,375,200 692,590,300 (75,909,700) 465,357,700 Ending fund balance (projected) $ 389,448,000 Attachment: FY 2010/11 Proposed Budget Executive Summary Agenda Item 8 • 24 • • • Executive Summary Introduction The budget for Fiscal Year (FY) 2010/11 is presented to the Board of Commissioners (Board) and the citizens of Riverside County. The budget outlines the projects the Commission plans to undertake during the year and appropriates expenditures to accomplish these tasks. The budget also shows the funding sources and fund balances that will be used for these projects. This document will serve as the Commission's monetary guideline. To provide the reader a better understanding of the projects, staff has included descriptive information regarding each department and major projects. The discussion in each department includes a review of major initiatives and key assumptions. Staff used the goals and objectives approved at the Commission meeting on March 10, 2010, to prepare this budget. In addition to the Commission's long-term goals and strategic plan, the short-term factors listed below were used to guide the development of the budget: Operational • Complete projects and programs included in the 1989 Measure A. • Aggressively pursue completion of the environmental and design processes on the SR-91, 1-15, and 1-215 projects included in the Western Riverside County Highway Delivery Plan. • Continue development of the toll program including executing toll program agreements with key partners. • Work closely with local jurisdictions to implement the Transportation Uniform Mitigation Fee (TUMF) Regional Arterial Program and facilitate the delivery of arterial improvements in western Riverside County (Western County). • Continue the preliminary engineering and environmental clearance for the Mid County Parkway and SR-79 realignment projects. • Continue cooperation with the Federal Transit Administration (FTA) regarding the Small Starts process to support activities for the Perris Valley Line Metrolink extension (Perris Valley Line) project. • Improve utilization and increase efficiency of commuter rail lines serving the County. • Support innovative programs that provide transit assistance in hard to serve rural areas or for riders with special transit needs. • Support cost reductions and promote operating efficiency for transit operators. • Maintain effective partnerships among commuters, employers, and government to increase the efficiency of our transportation system by encouraging and promoting transportation alternatives. • Continue to provide a motorist aid system that ensures safety and convenience to freeway motorists. • Maintain an active involvement in state and federal legislative matters to ensure that the Commission receives proper consideration for transportation projects and funding. • Maintain close communication with Commissioners and educate policy makers on all issues of importance to the Commission. 25 Financial • Fund administrative costs with allocations from Measure A, LTF, FSP, SAFE, and TUMF funds. • Maintain administrative program delivery costs below the policy threshold of 4% of Measure A revenues; the FY 2010/11 Management Services budget is 2.16% of Measure A revenues. • Maintain administrative salaries and benefits at less than 1% of Measure A revenues; the FY 2010/11 administrative salaries and benefits is .69% of Measure A revenues. • Continue to maintain prudent cash reserves to provide some level of insulation for unplanned expenditures. • Maintain current positive bond ratings with rating agencies. • Move forward on Measure A projects for highways and regional arterials using sales tax revenues, TUMF revenues, and state and federal funding as well as financing alternatives such as commercial paper, sales tax revenue bonds, and toll revenue bonds. • Leverage and protect past Measure A investments in rail with state and federal funding for additional rail improvements, including the Perris Valley Line. • Prioritize the use of LTF reserves for transit operations and require transit operators to draw down their current capital projects list before requesting additional capital funds. • Consider actions to lessen the restriction of the $500 million 2009 Measure A bonding cap. • Complete the replacement of the financial software system to better integrate project accounting needs and improve accounting efficiency. Budget Overview Chart 1 - Sources: Major Categories IPt -Debt Proceeds _ NI Measure a Sales Tax 30% fa Operating Transfers In 31% mt Investment Income 1% 17% LTF Sales Tax 11% aw S A Sales Tax O% II Intergovernmental 9% ® TUMF Revenue 1% Other Revenue O% Total sources are budgeted at $616,680,600, which is a decrease of 18% over FY 2009/10 projected sources and a 22% decrease over the FY 2009/10 budget. Total sources are comprised of revenues of $243,305,400, transfers in of $188,375,200, and debt proceeds of $185,000,000. The projected fund balance at June 30, 2010 available for expenditures (excluding reserves for debt service of $33,555,200 and advances receivable of • • • 26 • • $18,086,600) is $413,715,900. Accordingly, total funding available for the FY 2010/11 budget totals $1,030,396,500. Through FY 2005/06, the County had experienced significant growth corresponding to the national economic expansion and amplified locally by competitive advantages of Riverside County over other coastal counties (Los Angeles, Orange and San Diego): (i) housing that was (and remains) more available and affordable; and (ii) plentiful commercial real estate and available development land at lower rates. Moreover, both transportation and communication access to employment centers in Los Angeles and Orange counties improved. Riverside County's 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. As a result, the County enjoyed more diversified employment and commercial base, and an increasing share of the regional economy. Today the local economy in Riverside County reflects the nationwide recession, as evidenced by increased unemployment; decreases in total personal income and taxable sales, residential building permits, and the rate of home sales and the median price of single-family residences; and high rates of notices of default on mortgage loans secured by single-family residences. The impact of the recession has been amplified in the Inland Empire due to its relatively greater recent growth and the relatively lower average income levels when compared to coastal areas. These factors have resulted in declines in Measure A and LTF sales tax revenues and TUMF fees as noted in Chart 2. While economic reports indicate that the nationwide recession has ended and economic growth has resumed, recovery in the local Inland Empire economy is expected to be protracted. The outlook for FY 2010/11 is guarded with some recent signs that the decrease in local economic activity has ended and an economic recovery may have begun. Should Measure A and LTF sales tax revenues continue to decline and the availability of federal and state revenues continue to be uncertain, the timing and scope of the Commission's projects and programs may be impacted. Chart 2 — Commission Sources Trend $350,000,000 $300,o0o,000 $250,000,000 $200,000,0o0 $150,000,0o0 $1o0,000,o0o $s0,000,000 FY 06/07 FY 07/08 FY 08/09 FY 09/10 FY 10/11 —O—MeasureA Sales Tax -°m--LTF Sales Tax STA Sales Tax —X—TUMF Federal,State, Local Revenues Operating Transfers In —Debt Proceeds 27 The State Board of Equalization recently provided to cities and other agencies its projections that statewide taxable sales over the next fiscal year will increase 6.3%; however, given the tenuous local economy, the Commission considers this estimate to be extremely optimistic. The Commission is not basing its estimate of revenues on the State Board of Equalization's projection. After taking the state of the local economy and recent revenue trends into consideration, staff has projected that Measure A sales tax revenues will be unchanged from the FY 2009/10 revised projection of $106,000,000. On behalf of the County, the Commission administers the LTF for public transportation needs, local streets and roads, and bicycle and pedestrian facilities. The majority of LTF funding received by the County and available for allocation is distributed to all public transit operators in the County, and the Commission receives allocations for administration, planning, and programming in addition to funding for rail operations included in the commuter rail Short Range Transit Plan (SRTP). The LTF sales tax revenue received from the State is budgeted at $52,500,000, unchanged from the FY 2009/10 revised projection due to the economic concerns discussed earlier. Additional FY 2010/11 budgeted LTF revenues for allocations to the Commission's general fund include $700,000 for administration; $1,575,000 for planning and programming; $3,841,700 for grade separation jump-start funding award allocations to the cities of Corona and Riverside and the County; and $10,193,200 for rail operations and station maintenance. Intergovernmental revenues include reimbursement revenues from federal sources of $28,809,800, state sources of $26,598,500, local agencies of $666,900, and others of $1,283,800 for highway and rail capital, rail operations and station maintenance, commuter assistance, and motorist assistance programs as well as planning and programming activities. Reimbursement revenues vary from year to year depending on project activities and funding levels. STA funds generated from the statewide sales tax on motor vehicle fuel were allocated through FY 2008/09 by formula by the State Controller to the Commission for allocations to the County's public transit operators. The STA transit allocation for FY 2010/11 is $0 due to a continued suspension in the state's budget that began in FY 2009/10. As a result of an amended Memorandum of Understanding (MOU) with the Western Riverside Council of Governments (WRCOG), the Commission will receive 48.7% of TUMF revenues (as updated by the most recent Nexus study). TUMF represents fees assessed on new residential and commercial development in Western County. FY 2010/11 TUMF fees are expected to remain flat at $5,000,000 based on the weakened housing market in the Inland Empire, and these revenues also include TUMF zone reimbursements of $3,300,000 for the 74/215 interchange project. Other revenue is projected to decrease 88% from the prior year's budget primarily because of the conclusion in FY 2008/09 of the annual debt service payments from Coachella Valley Association of Governments (CVAG) related to bonds issued for 1989 Measure A Coachella Valley regional arterial projects. Investment income is anticipated to decrease 22% in FY 2010/11 as a result of declining interest rates and declining cash balances. Staff continues to actively manage its resources and make appropriate investments to maximize the return to the Commission without sacrificing security and affecting short-term cash requirements. Transfers in relate primarily to the transfer of debt proceeds to Measure A highway and regional arterial projects and to retire outstanding commercial paper notes. Debt proceeds consist of the issuances of additional commercial paper notes and sales tax revenue bonds. • • • 28 • • • Table 1 — Sources FY 2009-2011 Measure A Sales Tax $ 119,688,300 $ 106,000,000 $ 106,000,000 vy I = i I c l $ 0% LTF Sales Tax 73,059,700 81,055,300 69,037,400 .: ° ° 1.9 (12,245,400) -15% STA Sales Tax 4,860,800� - N/A Intergovernmental 104,666,400 78,773,600 41,544,200 rl`i (21,414,600) -27% TUMF Revenue 10,957,400 11,475,000 6,0917,900 (3,175,000) -28% Other Revenue 4,399,900 1,508,100 309,300 ' I �, (1,330,100) -88% Investment Income 13,567,900 3,419,100 3,834,900+' (760,600) -22% Operating Transfers In 46,541,200 244,211,600 237,806,000 `: I og (55,836,400) -23% Debt Proceeds 53,716,000 260,000,000 288,284,000I I I s l (75,000,000) -29% TOTAL Sources ° $ 431,457,600 $ 786,442,700 $ 752,906,700 �� « „u ,Ia $ (169,762,100) -22% Chart 3 — Uses:. Major Categories ® Motorist Assistance 1% ■ Management Services 1% • Debt Service 15% • Commuter Assistance 1% ■ Capital Local Streets and Roads 4% a Planning and Programming 1% s Public and Specialized Transit 3% Ei Rail Maintenance and Operations 2% ■ Capital Highway,,Rail, and Regional Arterials 72% Total uses, including transfers out of $188,375,200, are budgeted at $692,590,300, a decrease of 25% from the prior year budget amount of $919,996,500. Program expenditures and transfers out totaling $581,882,500 represent 84% of total budgeted expenditures in FY 2010/11. Program costs have decreased by 19% from $715,872,700 in FY 2009/10. Commuter Assistance budgeted expenditures of $4,379,500 are 44% below FY 2009/10 due to the completion of the Inland Empire 511 system implementation. Ongoing operations of the Inland Empire 511 system are funded through SAFE, a motorist assistance service. Accordingly, Motorist Assistance budgeted expenditures of $5,711,100 reflect a 49% increase from the FY 2009/10 budget of $3,840,700. Debt Service of $105,950,000 has decreased 47% as a result of the refinancing of the 2008 bonds and retirement of a portion of the outstanding commercial paper program notes in connection with the commencement of forward starting interest rate swaps and issuance of variable rate sales tax revenue bonds in FY 2009/10. 29 The 19% decrease in Management Services budgeted expenditures of $4,757,800 is primarily related to the reclassification of financing costs related to Measure A from Finance to Capital Project Development and Delivery as well as the implementation of the new financial software system. Planning and Programming Department budgeted expenditures of $6,721,100 reflect a 40% decrease from the FY 2009/10 budget of $11,122,300 as a result of the completion of geotechnical borings in the Cleveland National Forest related to feasibility analysis of a future Irvine -Corona Expressway and a decrease in jump-start funding disbursements for grade separation projects. The $12,745,200 decrease in Rail Department budgeted expenditures of $11,533,900 is primarily due to capital funding disbursements to SCRRA for new rail cars in FY 2009/10. Table 2 — Program Uses FY 2009-2011 Capital Highway, Rail, and Regional Arterials Capital Local Streets and Roads Commuter Assistance Debt Service Management Services Motorist Assistance Planning and Programming Public and Specialized Transit Rail Maintenance and Operations TOTAL Uses 301,477,700 $ 45,655,500 6,161,600 45,673,400 4,902,800 2,623,200 8,051,200 83,045,400 8,667,500 $ 506,258,300 $ Note: Management Services include Executive Management, Commission Personnel 547,571,000 $ 387,324,300 31,215,900 32,249,700 7,795,200 9,744,800 198,255,000 201,954,200 5,868,800 4,888,700 3,240,700 3,819,800 11,122,300 5,448,100 90,048,500 84,772,100 24,279,100 13,590,800 919,996,500 $ 743,792,500 $ (48,841,500) 680,100 (3,415,700) (92,305,000) (1,111,000) 1,870,400 (4,401,200) (67,137,100) (12,745,200) $ (227,406,200) Administration, Legislative Affairs and Communications, and Finance. -9% 2% -44% -47% -19% 49% -40% -75% -52% -25°% The Commission's salary and fringe benefits total $6,225,300 for FY 2010/11. This represents a slight increase of 3% or $162,000 over the FY 2009/10 budget of $6,063,300; however, as a cost savings measure, there will be no merit -based salary increases in FY 2010/11. The Full Time Equivalent (FTE) of 40.0 FTE positions is below the FY 2008/09 level as a result of three retirements related to the implementation of an early retirement incentive, position reorganization, and maintaining a position as vacant. • • 30 • • • Table 3 — Staff Summary by Department FY 2009-2011 Executive Management 0.7 0.4 Administration 4,7 4,2 Legislative Affairs and Communications 2.6 1.9 Finance 6.6 6.5 Planning and Programming 5.8 5.4 Rail Maintenance and Operations 2.9 3.2 Public and Specialized Transit 2.6 2.6 Commuter Assistance 1.8 1.8 Motorist Assistance 1.8 1.2 Capital Project Development and Delivery 15.5 13.8 TOTAL 45.0 41.0 Management continues to be firmly committed to the intent of the Commission's enabling legislation that called for a small staff. Staff will continue to be provided the tools needed, including state of the art technology, to ensure an efficient and productive work environment. However, it must be recognized that small is not viewed in an absolute context; it is relative to the required tasks to be performed and the demands to be met. Chart 4 — Personnel Salary and Benefits ■ Other Fringes 2% ■ Retirement 22% ■ Salary 64% The Commission provides a comprehensive package of benefits to all permanent, salaried employees. The package includes: health, dental, vision, and life insurance, short and long- term disability, workers' compensation, tuition assistance, sick and vacation leave, retirement benefits in the form of participation in California Public Employees Retirement System (CaIPERS), postretirement health care, deferred compensation, and employee assistance program. 31 Chart 5 — Salary and Benefits Costs $s000,000 $7,000000 $6,000,000 55,000,000 $4,000,000 $3,000,000 $2,000,000 $1,000,000 $- FY06/07 Department Initiatives FY 07/08 FY 08/09 FY 09/10 FY 10/11 The preparation of each department's budget was based on key assumptions, accomplishments in FY 2009/10, major initiatives for FY 2010/11, and department goals and related objectives. Following are the key initiatives and summary of expenditures for each department. Executive Management • Continue project development and delivery as the key Measure A priority. • Obtain approvals from the FTA, railroads, and community related to the development of the Perris Valley Line. • Advocate for state investments in transportation and approval of a federal transportation bill to fund needed transportation priorities in Riverside County and stimulate the local economy. • Maintain regional cooperation and collaboration as a significant effort consistent with the philosophy and mission of the Commission. • Enhance external communications with media, business and civic groups, and the community. • Maintain an effective mid -sized transportation agency with a small and dedicated staff. Table 4 — Executive Management Personnel $ 98,800 $ 93,700 $ 113,400 99,4QQ' $ 5,700 6% Professional 46,100 70,000 50,600 120,00050,000 71% Support 49,000 51,600 47,800 ' - 50,200'rr' (1,400) -3% TOTAL $ 193,900 $ 215,300 $ 211,800 $ ' 269,600I' $ 54,300 25% Administration • Provide high quality support services to the Commission and to internal and external customers. • Continue to strengthen the electronic records management system. • • • 32 • • • .Continue to provide timely communications to Commissioners with continued emphasis on the utilization of electronic mail. • Continue to update technology to streamline processes and provide easier access to Commission records. • Support and develop a motivated workforce with a framework of activities and practices that comply with employment laws and regulations. Table 6 — Administration Personnel $ 349,800 $ 357,700 $ 341,700 $ 41,700 12% Professional 135,900 138,000 108,300 w (3,500) -3% Support 995,200 1,101,900 1,003,000 }' (454,500) -41% Capital Outlay 100,100 20,000 20,000 (20,000) -100% Debt Service 18,900 NJA TOTAL $ 1599,900 $ 1,617,600 $ 1,473,000 � j $ (436,300) -27% Legislative Affairs and Communications • Continue efforts to protect and seek greater state and federal investment in transportation infrastructure and goods movement. • Advocate positions in the State Legislature and in Congress that advance the County's transportation interests, especially those related to the implementation of Express Lanes on SR-91 and of the Perris Valley Line. • Continue to develop a broad public information program regarding the Commission's responsibilities and accomplishments through a variety of media formats and presentation opportunities. • Continue to place an emphasis on providing communications support related to major project development efforts. • Provide new Commissioner orientation meetings and other continuing education opportunities for Commissioners. Table 6 — Legislative Affairs and Communications Personnel $ 358,900 $ 314,700 $ Professional 364,900 666,000 Support 142,500 166,400 TOTAL $ 866,300 $ 1,147,100 $ Finance 353,100 $ '. 2-1,200_- $ 495,000 588,000 129,900 _ 171,000' 978,000 '$ 1,050,200:' $ (23,500) -7% (78,000) -12% 4,600 3% (96,900) -8% • Continue appropriate uses of long- and short-term financing to advance 2009 Measure A projects of the Commission and CVAG. • Apply the sales tax revenue forecast update to develop a financing plan to support the Western County Highway Delivery Plan and CVAG highway and regional arterial projects, including consideration for a recommended increase in the $500 million 2009 Measure A bonding cap. • Develop and approve internal audit projects related to the organizational accountability program. 33 • Continue to keep abreast of Govemmental Accounting Standards Board (GASB) technical activities affecting the Commission's accounting and financial reporting activities and consider early implementation of new pronouncements. • Continue the implementation of an enterprise resource planning (ERP) system to benefit all staff in the management of accounting and project information and automate a paperless workflow system. • Continue to implement a centralized procurements process in order to strengthen controls and ensure consistency in the application of procurement policies and procedures and adherence to applicable laws and regulations. • Maintain order, safety, and security at the Commission -owned operating properties, including the commuter rail stations. Table 7 — Finance Personnel $ 703,500 $ 694,600 $ 773,100 a $ (13,000) -2% Professional 1,331,300 1,779,600 757,500 $ (933,100) -52% Support 30,800 59,100 494,300 it` 515,000 871% Capital Outlay 196,000 355,500 201,000 ,� (201,000) -57% Debt Service 3,452,500 6,500,000 (6,500,000) -100% TOTAL $ 5,714,100 $ 9,388,800 $ 2,225,900 a ,g $ (7,132,100) -76% Planning and Programming • Monitor funding authority and responsibility related to the State Transportation Improvement Program (STIP) and impacts on the STIP caused by the state budget issues. • Ensure STIP and Proposition 1B funded projects are administered and implemented consistent with California Transportation Commission (CTC) and California Department of Transportation (Caltrans) policies. • Continue to strategically program projects and obligate funds in an expeditious manner for the maximum use of all available funding, including monitoring the use of such funding to prevent funds from lapsing. • Focus on interregional concerns and maintain effective working relationships involving various bi-county transportation issues, including goods movement. • Coordinate planning efforts with regional and local agencies relating to the development of regional transportation plans (RTP) and green house gas reduction implementation guidelines. • Secure funding through the federal transportation bill for goods movement -related needs. • Monitor and track the TUMF regional arterial projects. • Work cooperatively with member agencies to continue the work efforts on the new Community Environmental Transportation Acceptability Process (CETAP) corridors. • Continue -the Congestion Management Program (CMP) update and traffic monitoring along urban and rural highway systems. • Administer the SB 821 Bicycle and Pedestrian Facilities Program. • Monitor the Port of Los Angeles and Port of Long Beach's (Ports) projects for impacts on Riverside County. • • 34 • • • Table 8 — Planning and Programming Personnel $ 833,800 $ 854 300 $ 926,400 k r F $ 80,000 9% Professional 513,100 704 300 313,800 ' (354,300) -50% Support 28,200 38,400 11,400 rr . (13,40(1) -35% Projects and Operations 6,676,100 9,525,300 4,196,500 w°s a (4,113,500) -43% TOTAL $ 8,051,200 $ 11,122,300 $ 5,448,100 , a r , $ (4,401,200) -40% Rail Maintenance and Operations • Continue the planning and implementation of capital improvements at the commuter rail stations in Riverside County, including multimodal facilities, security and rehabilitation projects, and a layover facility. • Continue project development and right of way acquisition activities related to the Perris Valley Line project. • Establish best approach to build, maintain, and operate cost effective and environmentally sustainable facilities that meet the public's transportation needs. • Continue efforts with local and state agencies to support intercity passenger rail service throughout Riverside County and a high-speed passenger rail system along an Inland Empire alignment. Table 9 — Rail Maintenance and Operations Personnel $ 384,200 $ 439,400 $ 399,400 €o,;+ $ 51,800 12% Professional 226,800 409,300 208,500 � _ . r'o (48,900) -12% Support 895,900 1,188,400 1,04,3,900 (195,000) -16% Projects and Operations 7,108,000 22,242,000 11,861900 ` ' (12,569,200) -57% Capital Outlay 52,600 72,100 16,100 WA TOTAL $ 8,667,500 $ 24,279,100 $ 13,590,800 _ $ (12,745,200) -52% Public and Specialized Transit • Support innovative programs that provide transit assistance in hard to serve rural areas or for riders having very special transit needs and monitor funding of these programs. • Approve specialized transit funding allocations for FY 2011/12 and FY 2012/13 following the development of a second universal call for projects. • Continue long-range planning activities to ensure that anticipated revenues are in line with projected levels of service by transit operators. • Monitor public and specialized transit operators' performance through the TransTrack program. • Provide availability for local matching funds to Western County applicants seeking FTA Section 5310 federal capital grants. 35 Table 10 — Public and Specialized Transit Personnel $ 297,800 $ 374,500 $ 336,100 `!fry $ (22,100) -6% Professional 176,000 342,800 208,800 (120,000) -35% Support 8,900 29,100 11,800 (1,500) -5% Projects and Operations 82,562,700 89,302,100 80,890,400° _ _ (66,993,500) -75% Transfers Out 3,325,000 ��; NIA TOTAL $ 83,045,400 $ 90,048,500 $ 84,772,100 $ (67,137,100) -75% Commuter Assistance • Improve the suite of services and outreach to rideshare participants and employer partners, including personalized information and electronic access and distribution. • Maintain and grow employer partnerships through value-added services and tools for ridesharing programs. • Continue to maintain and operate a five -county ridematching database system with partner agencies. • Maintain long-term partnership with SANBAG to manage and implement a "sister" Commuter Assistance program for residents and employers in San Bernardino County. • Optimize park and ride facilities to support car/vanpool arrangements and facilitate transit connections. Table 11— Commuter Assistance Personnel $ 161,200 $ 215,300 $ 368,300 as $ (1,500) -1% Professional 386,900 1,483,500 1,977,100 (887,700) -60% Support 391,000 524,300 549,800 y'$ 8,200 2% Projects and Operations 4,216,200 3,997,200 3,994,500 e d %° (1,176,800) -29% Capital Outlay 6,300 17,000 18,200 0% Transfers Out 1,000,000 1,557,900 2,836,900 , € a s m s (1,357,900) -87% TOTAL $ 6,161,600 $ 7,795,200 $ 9,744,800 , ;° 3a $ (3,415,700) -44% Motorist Assistance • Complete the implementation of the Automatic Vehicle Locator (AVL) system for tow trucks. • Implement a cost-effective and expandable radio system that addresses coverage issues and pending FCC narrowband regulations. • Operate and maintain the Inland Empire 511 system in partnership with SANBAG. • Work cooperatively with Caltrans, the CHP, and other FSP program managers to ensure equitable and to gain increased funding for the program. • 36 Table 12 — Motorist Assistance Personnel $ 110500 $ 141,000 $ 141,000 €. $ (64,300) -46% Professional 34,700 404,400 405,900 a .as (48,600) -12% Support 309,100 351,600 350,400 _ ="9 a4 595,000 169% Projects and Operations 2,168,900 2,489,000 2,488,800 s a 580,000 23% Transfers Out 454,700 433,700 t 808,300 178% TOTAL $ 2,623,200 $ 3,840,700 $ 3,819,800 , at $ 1,870,400 49% Capital Project Development and Delivery • Continue project development, right of way, and construction activities on remaining 1989 Measure A projects including SR-74 curve widening, 74/215 interchange, SR-91 HOV lanes/Adams Street to 60/91/215 interchange, and 60/215 East Junction HOV lane connectors and funding support for operational improvements at local interchanges on SR-60, SR-91, and SR-111. • Continue project activities on the 1-215 bi-county highway and Perris Valley Line rail projects, which were included in both the 1989 Measure A and 2009 Measure A programs. • Continue project work on the Western County Highway Delivery Plan projects, including the 71/91 connectors, SR-91 corridor improvements, 1-15 corridor improvements, 1-215 corridor mobility improvement projects, SR-79 realignment, and Mid County Parkway. • Commence rail project activities for the Riverside Downtown station layover facility, La Sierra station parking expansion, and rehabilitation projects. • Provide Western County TUMF funding and support to local jurisdictions for regional arterial project engineering, right of way acquisition, and construction. • Provide advance funding and support of 2009 Measure A highway and regional arterial projects and for the acquisition for land as mitigation in the Coachella Valley. • Maintain a right of way acquisition and management programin support of capital projects. • Manage right of way acquisition schedules and budget control measures. • Maintain and manage the access, use and security of Commission -owned properties, properties in acquisition process, and income generating properties. Table 13 — Capital Project Development and Delivery FY Ott- - 09t1 Actual'.- Personnel $ 2,149,700 $ 2,578,100 $ 2,406,000 $ 2, $5,300 $ 107,200 4% Professional 2,388,900 10,948,500 7,526,600 44,76000,3,816,100 35% Support 491,300 1,585,000 765,700 2,497700f 912,700 58% Projects and Operations 295,978,300 320,758,300 177,789,300 323;365,700' 2,607,400 1% Capital Outlay 583,800 718,000 (124,000) 400, (318,000) -44% Debt Service 42,202,000 191,755,000 201,954,200 1b5,950,000 (85,805,000) -45% Transfers 0ut 45,541,200 242,199,000 231,210,400 186,912,200 (55,286,800) -23% TOTAL $ 389,335,200 $ 770,541,900 $ 621,528,200 $ 636,575,500--: $ (133,966,400) -17% 37 Fund Balances The total fund balance as of June 30, 2010 is projected at $465,357,700. The Commission's budgeted activities for FY 2010/11 are expected to result in a $75,909,700 decrease of total fund balance at June 30, 2011 to $389,448,000. A significant portion of the decrease is related to the use of available fund balance for the Measure A, TUMF, and LTF special revenue funds to complete the 1989 Measure projects and programs and to fund approved TUMF projects and transit operations in a declining revenue environment. Table 14 — Projected Fund Balances by Govemmental Fund Type and Program at June 30, 2011 Management Services Planning and Programming Rail Maintenance and Operations Right of Way Management $3,491,600 65,000 4,317,400 179,400 Measure A Westem County: Bond Financing Commuter Assistance Economic Development Highways New Corridors Public and Specialized Transit Rail Regional Arterials Measure A Coachella Valley: Highways and Regional Arterial local Streets and Roads Specialized Transit Highways $5,859,400 Advances Receivable 16,188,1130 9,062,000 1,825,400 101,368,500 17,181,700 10,944,500 23,156,203 12,286,700 1,210,7W 1,100 300 Measure APalo Verde Valley Local Streets and ( 400 Motorist Assistance State Transit Assistance Local Transportation Fund TUMF 6,466,000 15,339,480 91,925,7W 41,747,2W $2,907,180 • • 38 • • Table 16 - Budget Comparative by Summarized Line Item FY 2009-2011 Revenues Measure A Sales Tax LTF Sales Tax STA Sales Tax Federal Reimbursements State Reimbursements Local Reimbursements TUMF Revenue Other Revenue Investment Income TOTAL Revenues Expenditures Personnel Salary and Benefits Professional and Support Professional Services Support Costs TOTAL Professional and Support Costs Projects and Operations Program Operations - General Engineering Construction Design Build Right of Way/Land Operating and Capital Disbursements Special Studies Local Streets and Roads Regional Arterials TOTAL Projects and Operations Debt Service Principal Payments Interest Payments Cost of Issuance TOTAL Debt Service Capital Outlay TOTAL Expenditures Excess (deficiency) of Revenues over (under) Expenditures Other Financing Sources (Uses) Transfers In Transfers Out Debt Proceeds Net Financing Sources (Uses) Excess (deficiency) of Revenues over (under) Expenditures and Other Financing Sources (Uses) Beginning Fund Balance ENDING FUND BALANCE $ 119,688,300 73,059,700 4,860,800 50,692,700 52,670,300 1,303,400 10,957,400 4,399,900 13,567,900 331,200,400 $ 106,000,000 $ 106,000,000 81,055,300 69,037,400 40,755,000 36,896,800 1,121,800 11,475,000 1,508,100 3,419,100 282,231,100 5,448,200 6,063,300 5,604,600 3,341,900 8,946,500 11,586,400 50,287,600 79,794,400 105,901,600 90,044,700 4,799,700 45,655500 10,640,300 398,710,200 33,646,500 12,026,900 45,673,400 938,800 459,717,100 16,946,400 5,095,800 22,042,200 12,824,300 60,730,050 65,043,300 21,425,000 123,605,650 117,475,500 2,232,800 31,215,900 13,761,400 448,313,900 182,395,000 12,610,000 3,250,000 198,255,000 1,110,500 675,784,900 17,337,300 22,972,800 1,234,100 6,090,900 309,300 3,834,900 226,816,700 6,158,500 12,052,100 4,413,000 16,465,100 11,430,900 56,507,300 31,459,300 1,200,000 43,034,900 94,320,700 1,412,200 32,249,700 9,606,400 281,221,400 192,395,000 8,559,900 999,300 201,954,200 187,300 505,986,500 (128,516,700) (393,553,800) (279,169,800);' 46,541,200 (46,541,200) 53,716,000 53,716,000 244,211,600 (244,211,600) 260,000,000 260,000,000 237,806,000 - (237,806,000) 288,284,000 288,284,000 9 OOtl? $ 0% (12,245,400) -15% N/A (11,945,200) -29% (10,298,300) -28% 828,900 74% (3,175,000) -28% (1,330,100) -88% (760,600) -22% (38,925,700) -14% 162,000 3% 1,392,000 8% 1,369,700 27% 2,761,700 13% 2,368,100 18% (8,372,450) -14% 7,147,300 11% 1,575,000 7% (3,881,250) -3% (82,337,700) -70% (1,197,200) -54% 680,100 2% 2,352,500 17% (81,665,600) -18% (89,795,000) -49% (760,000) -6% (1,750,000) -54% (92,305,000) -47% 7. (522,900) -47% .5,106'(171,569,800) -25% (260,909,700)132,644,100 -34% 188375200 (188,375,200) 185,000,000 185,000 000 (55,836,400) -23% 55,836,400 -23% (75,000,000) -29% (75,000,000) -29% (74,800,700) (133,553,800) 9,114,200 -:: (75,909,700) 57,644,100 -43% 531,044,200 456,243,500 456,243,500 465,357,700 9,114,200 2% $ 456,243,500 $ 322,689,700 $ 465,357,700 $ 389,448,000. $ 66,758,300 21% 39 Table 16—Operating and Capital Budget FY 2010/11 Revenues Measure A Sales Tax LTF Sales Tax STA Sales Tax Federal Reimbursements State Reimbursements Local Reimbursements TUMF Revenue Other Revenue Investment Income TOTAL Revenues Expenditures Personnel Salary and Benefits Professional and Support Professional Services Support Costs TOTAL Professional and Support Costs Projects and Operations Program Operations - General Engineering Construction Design Build Right of Way and Land Operating and Capital Disbursements Special Studies Local Streets and Roads Regional Arterials TOTAL Projects and Operations Debt Service Principal Payments Interest Payments Cost of Issuance TOTAL Debt Service Capital Outlay TOTAL Expenditures Excess (deficiency) of Revenues over (under) Expenditures Other Financing Sources (Uses) Transfers In Transfers Out Debt Proceeds Net Financing Sources (Uses) Excess (deficiency) of Revenues over (under) Expenditures and Other Financing Sources (Uses) Beginning Fund Balance $ 10,758,600 68,809,900 2,027,400 4,904,500 780,700 704,500 87,985,600 3,540,000 3,573,800 3,967,800 7,541,600 7,179,200 35,137,800 965,600 43,282,600 187,600 $ 95,241,400 26,782,400 21,694,000 1,170,000 8,300,000 178,000 1,954,000 155,319,800 2,685,300 14,764,600 2,497,700 17,262,300 8,013,200 52,357,600 72,190,600 23,000,000 119,724,400 70,000 31,896,000 16,113,900 323,365,700 92,600,000 11,850,000 1,500,000 105,950,000 400,000 54,551,800 449,663,300 33,433,800 2,725,200 (1,463,000) 185,650,000 (186,912,200) 185,000,000 188,375 2p0 (188,375,200) 185,000,000 1,262,200 34,696,000 183,737,800 (110,605,700) 106,915,900 358,441,801 ENDING FUND BALANCE $ 141,611,900 $ 247,836,101 $, 85;000,000 (75,909,700)` 465,357,700- 389,448,000' • • 40 Table 17 — Budget by Governmental Fund Type FY 2010/11 Revenues Measure A Sales Tax $ 2,700,000 $ 103,300,000 $ LTF Sales Tax 16,309,900 52,500,000 STA Sales Tax - Federal Reimbursements 406,700 28,403,100 State Reimbursements 500,100 26,098,400 Local Reimbursements 1,298,000 652,700 TUMF Revenue - 8,300,000 Other Revenue 178,000 Investment Income 40,100 TOTAL Revenues 21,432,800 Expenditures Personnel Salary and Benefits 3,125,200 3,100,100 Professional and Support Professional Services 3,179,400 15,159,000 Support Costs 2,729,100 3,736,400 TOTAL Professional and Support Costs 5,908,500 18,895,400 Projects and Operations Program Operations - General Engineering Construction Design Build Right of Way/land Operating and Capital Disbursements Special Studies Local Streets and Roads Regional Arterials 1,340,300 13,852,100 52,357,600 69,190,600 3,000,000 23,000,000 - 50,000 117,674,400 2,000,000 12,849,200 22,288,600 - 945,600 90,000 - 31,896,000 16,113,900 TOTAL Projects and Operations 15,185,100 346,463,200 5,000,000 Debt Service Principal Payments Interest Payments Cost of Issuance TOTAL Debt Service Capital Outlay TOTAL Expenditures Excess (deficiency) of Revenues over (under) Expenditures 83,300,000 9,300,000 ' 1,400,000 10,450,000 1,500,000 86,200,000 (2,956,600) (147,938,000) (90,384,100) (19,631,000) Other Financing Sources (Uses) Transfers In 2,049,100 93,026,100 83,300,000 10,000,000 Transfers Out (770,000) (9,305,200) (178,300,000) Debt Proceeds - - 185,000,000 Net Financing Sources (Uses) 1,279,100 83,720,900 90,000,000 10,000,000 Excess (deficiency) of Revenues over (under) Expenditures and Other Financing Sources (Uses) (1,677,500) (64,217,100) (384,100) (9,631,000) Beginning Fund Balance ENDING FUND BALANCE 5,200 a:75,204) l$5 00 0 4' Y85,06w° 9,700) 9,730,900 402,592,300 19,479,300 33,555,200 465,357,700:. $ 8,053,400 $ 338,375,200 $ 19,095,200 $ 23,924,200 $ 389,4448,000. 41 Table 18 — Highway, Regional Arterial, and Rail Programs FY 2010/11 INV Projects and Operations Bechtel Program Management SCRRA Program Management General TOTAL PROJECTS -GENERAL Highway Engineering 74/215 Interchange 60/215 East Junction HOV Lanes Connector 71/91 Connectors 1-1S Corridor Improvements 1-215 Bicounty HOV Interim Project 1-215 Bicounty Project 1-215 Mixed Flow Lanes/1-1S to Scott Road 1-215 Mixed Flow Lanes/Scott Road to Nuevo Road 1-21S Southbound to 1-15 Connector Widening Gap Closure Mid County Parkway SR-91 Corridor Improvements SR-91 HOV Lanes/Adams Street to 60/91/215 Interchange General SUBTOTAL HIGHWAY ENGINEERING Regional Arterial Engineering Various Western County TUMF Regional Arterial Projects SUBTOTAL REGIONAL ARTERIAL ENGINEERING Rail Engineering BNSF 4th Main La Sierra Station Improvements Perris Valley Line and Other Related Projects Riverside Layover Facility Station Rehabilitation Projects SUBTOTAL RAIL ENGINEERING TOTAL HIGHWAY, REGIONAL ARTERIAL, AND RAIL ENGINEERING Highway Construction SR-60/Valley Way Interchange 60/215 East Junction HOV Lanes Connector 74/215 Interchange 1-215 Mixed Flow Lanes/1-1S to Scott Road SR-111 City Project SR-74 Curve Widening 5R-91/Green River Interchange Bridge 5R-91/La Sierra Interchange SR-91/Van Buren Interchange Coachella Valley Projects SUBTOTAL HIGHWAY CONSTRUCTION Regional Arterial Construction Various Western County TUMF Regional Arterial Projects SUBTOTAL REGIONAL ARTERIAL CONSTRUCTION Rail Construction La Sierra Station Improvements North Main Corona Station Parking Structure Perris Valley Line and Other Related Projects Riverside Layover Facility Station Rehabilitation Projects SUBTOTAL RAIL CONSTRUCTION TOTAL HIGHWAY, REGIONAL ARTERIAL, AND RAIL CONSTRUCTION Highway Design Build SR-91 Corridor Improvements TOTAL HIGHWAY DESIGN BUILD Highway Right of Way and Land 74/215 Interchange 60/215 East Junction HOV Lanes Connector 1-215 Mixed Flow Lanes/Scott Road to Nuevo Road I-215/1-15 to Scott Road Mid County Parkway SR-74 Curve Widening SR-74/1-15 to 7th Street SR-79 Realignment SR-79/Thompson to Domenigoni SR-91 Corridor Improvements SR-91 HOV Lanes/Adams Street to 60/91/215 Interchange Coachella Valley MSHCP SUBTOTAL HIGHWAY RIGHT OF WAY AND LAND Regional Arterial Right of Way and Land Various Western County TUMF Regional Arterial Projects SUBTOTAL REGIONAL ARTERIAL RIGHT OF WAY AND LAND SUBTOTAL REGIONAL ARTERIAL RIGHT OF WAY AND LAND Rail Right of Way and Land Perris Valley Line and Other Related Projects General SUBTOTAL RAIL RIGHT OF WAY AND LAND TOTAL HIGHWAY, REGIONAL ARTERIAL, AND RAIL RIGHT OF WAY AND LAND GRAND TOTAL HIGHWAY, REGIONAL ARTERIAL, AND RAIL PROGRAMS 42 TT/OTOZ aeaA leas!A le6pna pasodowid uondopd pue nnainaa lap El uogeiidwoa ;e6pn8 Newdolanea ;af pn8 wetupedea sengoafg0 pue Sien ;uetupede woo AoHod uoisquauao uoneuiRs3 eaanose swop ADHod uoissiwuaop paainbaa 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V ,.., e• ....7 ..., .7 -' „....."- ,7'. 7 -7 ,..." 7 0: 0: T: : 7 .7 .7 -''' „---..„7" „„...7 , OST$ 7 7.- ...7- .,..,70 ..,,, .......„ „..... SCES " 7 ....- 7 .7 ...- SZZ$ 7- 7- .7 ,,- -----11-:-1-1.1---";11;;;;" 0°: :SZ i ;$ 7" ..- 7 ,,,,,, ,- 7" 7.7....7- 17- 7 , , -7 ,- - ,- 7- ,..- .7 ,-- -- -7? uospedugo saanmpuadx3 ieuolpunA OLOZ `6 aunt lapnq dope pue Etupeaq 3Hgnd esolo 01,0Z `Z4 Aew Buipeay 3ugnd uado auuaslnqu�Eaa a;ems pug ��aaa�cs'ssau��' flUGA0,1. su�q pue Y U sarua.j :4A sanuanea f uiaoiiuow anunuo3 AGENDA ITEM 9 • RIVERS/DE COUNTY TRANSPORTATION COMM/SS/ON DATE: April 26, 2010 TO: Budget and Implementation Committee FROM: Greg Moore, Procurement and Assets Manager THROUGH: Theresia Trevino, Chief Financial Officer SUBJECT: Recurring Contracts for Fiscal Year 2010/11 STAFF RECOMMENDATION: This item is for the Committee to: 1► Approve the recurring contracts for FY 2010/11; and 2) Forward to the Commission for final action. BACKGROUND INFORMATION: Thirteen years ago, the Commission evaluated all recurring contracts for selected mission critical professional services, in order to determine whether to hold a competitive process to renew each agreement. As a result of that review, most of the contracts were rebid. For the limited number of contracts that were not rebid, however, the Commission required those recurring contracts be approved at the beginning of each fiscal year. All other contracts for professional services are rebid on a periodic basis ranging from three to five years, depending on the nature and type of service. This year's list of recurring contracts includes consultants that are providing unique or specialized services and working closely with Commission staff on long term projects. Staff desires to retain a limited number of consultants on the recurring contracts list because of their historical knowledge, unique experience and understanding of the Commission, and specific Commission projects. Under limited circumstances, staff believes it is more efficient and cost effective to retain the consultants on the recurring contracts list rather than rebidding the services at this particular time. Approval of the recurring contracts list will allow the Commission to continue work on existing projects without interruptions and maintain consistency. Due to the current economic climate, staff requested that each firm on the recurring contracts list review its current pricing terms and work plan and reduce its proposed FY 2010/11 rates/fees. As a result of staff negotiations, the proposed FY 2010/11 rates/fees have been reduced to reflect the current market rate for the Agenda Item 9 43 same services and/or level of work plan required. The Commission will realize significant savings due to a reduction in consultant billable rates or other contract revisions. In one case, staff was able to negotiate a 20% reduction in billable rates. Below is the list of proposed recurring contracts for FY 2010/11, followed by a summary for each consultant supporting its inclusion on the recurring contracts list: Schedule of Recumng Contracts for FY 2010/11 Consultant Name Description of Services Budget FY 09/10 Budget FY 10/11 Dollar Change Percent Change AMMA Consultant support for administration of Specialized Transit Program under Measure A and federal programs $ 100,000 $ 96,000 $ (4,000) (4%) Bechtel Infrastructure Program Management Services 5,316,100 4,861,000 (455,100) (9%) Best, Best & Krieger LLP General Legal Services 1,845,500 1,760,000 (85,500) (5%) Case Systems Inc. Call Box Maintenance 310,000 250,000 (60,000) (19%) Fieldman Rolapp & Associates Financial Advisory Services 240,000 180,000 (60,000) (25%) Orrick, Herrington & Sutcliffe LLP Bond Counsel Services 265,000 190,000 (75,000) (28%) (67%) Rahimian Management and Consulting, Inc. Project Management Services 150,000 50,000 (100,000) San Bernardino Associated Governments Call Answering Center Services for Riverside County Call Boxes 33,000 40,400 7,400 22% Schiermeyer Consulting Services Rail Consulting Services 185,000 150,000 (35,000) (19%) Total $8,444,600 $7,577,400 $(867,200) (10%) AMMA As a result of a request for proposal (RFP) process completed in February 2007, AMMA was selected to provide consulting services for the development and implementation of the Coordinated Public Transit -Human Services Transportation Plan (Coordinated Plan), as well as the nexus of the Coordinated Plan to the receipt of federal Jobs Access Reverse Commute and New Freedom grant funds. AMMA also advises staff regarding the implementation of operator reporting for the current Agenda Item 9 • 44 Specialized Transit Universal Call for Projects and is assisting in the development of the application and eligibility guidelines for the Specialized Transit Universal Call for Projects pertaining to the next two-year funding cycle. Bechtel Infrastructure The Bechtel Infrastructure (Bechtel) contract for FY 2010/11 reflects a 9% decrease although the staffing level will remain the same. This is the result of a 6.5% reduction of the overhead rate associated with a corporate restructuring and cost cutting efforts. Bechtel is continuing program management activities of highway and rail projects for the 2009 Measure A program, as well as the wrap-up of delivery of the remaining 1989 Measure A program. Bechtel possesses the knowledge and background history of the Commission's capital projects, which is necessary to deliver the Commission's Measure A projects. The flexibility of obtaining additional support from Bechtel as needed for specific project requirements is also important and avoids the need to increase Commission staff. Best, Best & Krieger LLP The Best, Best & Krieger LLP (BB&K) contract for FY 2010/11 reflects a decrease of 5%, which is primarily attributable to a reduction in the anticipated level of continuing general legal services required for capital project activities related to highways and commuter rail under the 1989 and 2009 Measure A programs. In recent years, the Commission has engaged other legal firms for specific matters involving potential conflicts of interest as well as specialized legal services. Case Systems Inc. Case Systems Inc. (formerly Comarco Wireless Technologies) provides for routine corrective and preventive maintenance of call boxes, including knockdowns and vandalism. Case Systems, Inc. was selected as a result of a competitive procurement in 2001, in which it was the only responsive bidder, and has provided these services since the inception of the call box program. An RFP process is not anticipated upon contract expiration on June 30, 2010, but will be conducted prior to contract expiration in June 2011. Fieldman Rolapp & Associates Fieldman Rolapp & Associates (Fieldman) was selected as the Commission's financial advisor in late 2003, following an RFP process, and has provided financial advisory services on general finance matters and specific financing transactions related to the 2009 Measure A program. Fieldman is currently involved in the planning for the toll financing activities, a bond issuance in 2010, and the potential increase in the Measure A debt limit. Based on current financing activities as well Agenda Item 9 45 as Fieldman's knowledge and understanding of the Commission, staff believes it would be more efficient and cost-effective for continuity purposes to retain Fieldman through December 2011. Staff intends to solicit new proposals for financial advisory services following the conclusion of the anticipated financing transactions. Orrick, Herrington & Sutcliffe LLP Orrick, Herrington & Sutcliffe LLP (Orrick) was selected as bond counsel in late 2004, following an RFP process, and has provided bond counsel services in connection with the financings and other matters related to the 2009 Measure A program. Based on Orrick's understanding of the Commission's 2009 Measure A program and its experience with other transportation agencies, especially self-help counties, staff believes that it would be more efficient and cost-effective to continue to retain Orrick through December 2011, in order to complete the proposed sales tax and toll financings. Staff intends to solicit proposals for bond counsel services following these transactions. Rahimian Management and Consulting, Inc. Rahimian Management and Consulting, Inc. (RMC) provides project management services for the Irvine -Corona Expressway project feasibility work. RMChas supported both the Orange County Transportation Authority and the Commission on this work effort, and the contract has been jointly funded by each agency. The feasibility report has been completed; however, the two agencies are considering a public private partnership workshop to gauge private industry interest in the project as well as continued coordination with the USDA Forest Service on water monitoring. RMC will assist in the planning, development, and implementation of this workshop and continue coordination with the USDA Forest Service. The execution of a contract with RMC is contingent upon a determination by the Commission in the next few months as to the continuation of work on the ICE project. San Bernardino Associated Governments In February 2002, the San Bernardino Associated Governments' (SANBAG) Service Authority for Freeway Emergencies (SAFE), and the Commission's SAFE began to jointly operate a private call answering center through a SANBAG contract with Professional Communications Network (PCN) that was procured on a competitive basis. It has provided an outstanding level of service for both agencies. The $7,500 increase over the prior year contract amount reflects additional funds for one-time projects, as well as funding to replace antiquated computer equipment. The total SANBAG contract amount with PCN is $105,000; the Commission will reimburse SANBAG approximately 38% of the costs. Agenda Item 9 • 46 • • Schiermeyer Consulting Services Schiermeyer Consulting Services (Schiermeyer) has provided valuable consulting services for the Commission's rail program since 1992. Schiermeyer has been directly involved in all rail service and station planning efforts including the initial development of the Perris Valley Line. Current projects include analysis of the impacts of current Metrolink routes in light of budget -required service reductions, support and development of Coachella Valley rail service, and support of the high speed rail project. Schiermeyer has the unique experience to support the rail program that cannot be easily found with other firms. Financial Information In Fiscal Year Budget: Yes Year: FY 2010/11 Amount: $7,577,400 Source of Funds: Measure A, TDA, TUMF, FSP, SAFE Fees, Interest, and Other Reimbursements Budget Adjustment: No GLA No.: Various Fiscal Procedures Approved: c� \asitte..uin Date: 04/15/10 Agenda Item 9 47 • AGENDA ITEM 10 • • • • RIVERSIDE COUNTY TRANSPORTATION COMMISSION DATE: April 26, 2010 TO: Budget and Implementation Committee FROM: Sheldon Peterson, Rail Manager THROUGH: Robert Yates, Multimodal Services Director SUBJECT: Memorandum of Understanding with Southern California Association of Governments for the "Rising Stars in Transit" Internship Program STAFF RECOMMENDATION: This item is for the Committee to: 1) Approve Memorandum of Understanding (MOU) No. 10-25-089-00 between the Commission and the Southern California Association of Governments (SCAG) for the Rising Stars in Transit — Internships for University Students program; 2) Authorize the Executive Director, pursuant to legal counsel review, to execute the MOU on behalf of the Commission; and 3) Forward to the Commission for final action. BACKGROUND INFORMATION: In an effort to provide professional development opportunities for local university students, staff applied for and was awarded a Ca!trans Transportation Planning Grant. This is the second award for what has proven to be a successful program to recruit, train, and hire exceptional local talent. The project is entitled, Rising Stars in Transit — Internships for University Students, under the Transit Professional Development category of the Federal Transit Administration (FTA) 5313(b) program. The grant is for $50,000 with a local in -kind match of $10,000 comprised of staff supervision time. The internship program will include recruitment/selection of the student interns, comprehensive overview of specific transportation planning functions, lunch bag sessions with senior management, and an evaluation of the program. This provides an opportunity to expose local students to careers in transportation planning. The grant funds will be spent directly on intern compensation and training. The in -kind match will be calculated by the staff time needed to recruit, train, and mentor the students. Agenda Item 10 48 SCAG is the administering agency for the planning grant project and the Commission will enter into a MOU No. 10-25-089-00 with SCAG for the grant funds. The program is scheduled to begin in May 2010, and continue for a two-year period. At the completion of the grant, the Commission may decide to implement an ongoing internship program. Financial Information In Fiscal Year Budget: Yes Year: FY 2010/11 Amount: $30,000 N/A FY 2011/12 $20,000 Source of Funds: Federal and Local Transportation Funds Budget Adjustment: No GLA No.: 103 25 41509 2401 $50,000 103 25 6XXXX 2401 $50,000 Fiscal Procedures Approved: tom. Date: 04/19/10 Attachment: MOU No. 10-25-089-00 Agenda Item 10 • • 49 • • • MEMORANDUM OF UNDERSTANDING No. 10-25-089-00 BETWEEN RIVERSIDE COUNTY TRANSPORTATION COMMISSION AND THE SOUTHERN CALIFORNIA ASSOCIATION OF GOVERNMENTS FOR RISING STARS IN TRANSIT — INTERNSHIPS FO ' r VERSITY STUDENTS (WBS # 10-SCG01239 This Memorandum of Understanding ("MO �""`ems mad entered between the Riverside County Transportation Com '> a '' ("RCTC"), ' tonal Transportation Planning Agency, and the Southern fornia Associa +t._of Governments ("SCAG"), a Joint Powers Agency. Recitals WHEREAS, RCTC, with the assist�ce of tit,universt other local colleges, see to implemtrans' , v ing California at Riverside and hip program at RCTC; WHEREAS, SCAWprogramnied Trans `ri ?r¢ ';'ionai i _ lopment Grant funds in the total amount of $60i900 in the;Fiscal Year 2009-10 Overall Work Program (OWP), for "Rising Stars in it Inth sh "— foethiiversity Students ("Program"); the total amount of $10,000 for the WHEREAS, the goal of the.Prograrh is to provide an educational resource to allow local students to gain experience intransportation planning in a real world setting. In addition, successful completion of the Program will result in RCTC institutionalizing the internship program; WHEREAS, RCTC shall serve as the lead agency and implement the aforementioned Program in accordance with the Scope of Work, Exhibit A; WHEREAS, performance by RCTC shall commence on the date indicated in the notice to proceed which shall be provided to RCTC by SCAG ("Notice to Proceed") and is planned to continue through June 30, 2012. This MOU shall supercede and replace any previous agreements between SCAG with RCTC related to the Program described herein; WHEREAS, RCTC agrees not to begin the Program until SCAG issues a Notice to Proceed; and 50 WHEREAS, SCAG's Fiscal Year is from July 1 through June 30; NOW THEREFORE, it is mutually agreed that: 1. MOU This MOU is comprised of these terns and conditions and any attached Exhibits, and may be amended only by written agreement between SCAG and RCTC. 2. Scone of Work RCTC shall furnish all technical and professio . a including labor, material, equipment, transportation, supervision, and a nece s to fully and adequately manage the Program as set forth in the Sco ork, "Exhi," attached hereto and incorporated herein by this reference. 3. Term a. The Term of this MOU s Proceed. b. The Term of this MOU shall to provided herei c. Reimbursem funding agency eac Year. All work un Managers. a. For purposes of mence oate indicated in Notice to less terminated earlier as scat Year a subject to the inclusion and the Overall Work Program (OWP) for is not approved in the OWP for each ffective June 30t of the Fiscal Year be coordinated with RCTC and SCAG through the Project U, SCAG designates the following Project Manager: Matt Gleason Assistant Regional Transit Planner (213)236-1832 SCAG reserves the right to change this designation upon written notice to RCTC. b. For purposes of this MOU, RCTC designates the following Project Manager: • 51 • • • Sheldon Peterson Rail Program Manager (951)787-7928 RCTC may change the designation of its Project Manager by written notification to the SCAG Project Manager. 5. Funding a. The total value of the Program is $60,000, as follows: Grant Funds: $50,000 In -Kind Match: $10,000 b. The maximum reimbursement amount THOUSAND DOLLARS ($50,000). 6. In -Kind Match RCTC shall provide the requir Work for In -Kind Match and In herein by this reference as "Exhib provide SCAG with Match Repo requirements descr �,in Secti 7. Invoices Pro a. In ret Acc 90017. mcorpora Principles) � rsement by S ou Payable, b. SCAG shall m P this MOU is FIFTY in -kind m: accordance with Elie Scope of ch Budge ached hereto and incorporated hibit D, w , ectively. RCTC agrees to achnr e which shall meet the orts cope of Work, Exhibit A, RCTC may g Chart, "Exhibit B," attached hereto his refer"� �� Said costs shall comply with Section 9 e the only costs for which RCTC has a right to here- r. RCTC shall submit monthly invoices to SCAG, est t 6nth Street, Floor 12, Los Angeles, California approval authority of Invoices submitted under this MOU. c. No indirect costs are authorized for this Program. d. RCTC shall submit the following relative to an Invoice: (1) Consistent with the attached Invoice Format, Exhibit E, an Invoice in duplicate with the following information included, but not limited to: the name of the Program, the applicable WBS Number as described below in Paragraph (4), description of services performed, period of the service performed, intern 52 name, actual hourly rate, total hours worked, total cost incurred, and a statement that costs were funded with non-federal local funds accompanied by an authorized signature on behalf of RCTC. (2) A Progress Report that, in narrative form, describes progress toward completion of tasks provided in accordance with Exhibit A, conformance with project schedules, and reporting of all costs incurred for the applicable WBS Number as described below in Paragraph (4); (3) A Match Report that, in narrative form, describ rogress toward completion of tasks provided in accordance with Exhi ' and reporting of all costs incurred in accordance with Exhibit D; (4) For the "Rising Stars in Transit" Program, SCAG WBS # 10-SC of the issuance of the Notice to (5) Upon request of SCAG, RCT documentation to sup rt the costs c days. (6) Upon request of SCAG, SCAG Project "Manager. e. Year-end In before July completed in the 8. a. agrees to c ye w� following: (1) Contract Cod inciplbrand Procedures, 48 Code of Federal Regulations, Fedikral Acquisiti egulations System, Chapter 1, Part 31, et seq. (Office of Management and Budget Circular A-87, "Cost Principles for State, Local, and Indianrtlal Grnments)," shall be used to determine the acceptability of individual ptejfei cost items; and (2) The Federal administrative procedures in accordance with 49 Code of Federal Regulations, Part 18, "Uniform Administrative Requirements for Grants and Cooperative Agreements to State and Local Governments." .01 shall d through June 11 pro for University Students erenced from the date 12; addition formation or he Invoice wt thirty (30) nthly progress update to the ion rri be received by SCAG on or oices recei ed after July 30 for work through June 30) shall not be paid. b. Any costs for which RCTC receives payment or credit that is determined by a subsequent audit or other review by either SCAG, Caltrans or other State or Federal authorities to be unallowable under, but not limited to, OMB Circular A-87; 48 CFR, Chapter 1, Part 31; or 49 CFR, Part 18, are to be repaid by RCTC within thirty (30) • • • 53 days of RCTC receiving notice of audit findings and a written demand for reimbursement from SCAG. Should RCTC fail to reimburse unallowable costs due SCAG within thirty (30) days of demand, or within such other period as may be agreed between both parties hereto, SCAG is authorized to withhold future payments due ROTC. c. All costs charged to this MOU by RCTC shall be supported by properly executed payrolls, time records, invoices, and vouchers, evidencing in proper detail the nature of the charges, and shall be costs allowable under the cost principles cited above in paragraph a. 9. Agreement Changes a. No alteration or deviation of the terms of be be valid unless made in writing and properly executed by both p r b. SCAG may request, at any time, amf ents to this MOU a ill notify RCTC regarding such changes. Within ten (1 t+�' s : s fro a date of ritten notice, RCTC shall notify SCAG o the impact o , c ges on the of Work, schedule, and budget. U ivy a eement be '� the parties as to ` e required changes, an amendment to t _ „ hall be p _ ed regarding the same. If the parties are unable to reach an arding = .::, ranges requested by SCAG, the par ties may terminate this _ ,nce e provisions set forth in Section 19(a) o 10. Notices Any no ' notices fitted . Abe given pursuant to this MOU may be pers the o arty b rt =.ving such notice, or may be served by ce �rt y +mail, retu eipt "sted, to lowing addresses: Assistant Donal Transit Planner Southern Cali ornia Associaften of Governments 818 W. 7th Street, 12th Floors Los Angeles, CA 90017 Phone: (213) 236-1832 FAX: (213) 236-1803 Sheldon Peterson Riverside County Transportation Commission 4080 Lemon Street, 3`d Floor Riverside, California 92502 Phone: (951) 787-7928 FAX: (951) 787-7920 54 11. Hold Harmless • RCTC agrees to indemnify and hold harmless SCAG, Caltrans, United States Department of Transportation (DOT), and all of their officers, agents, and employees from any and all claims, demands, costs, or liability arising from or connected with intentional or negligent acts, errors or omissions or any violations of law by RCTC, its officers, members, employees, or agents, arising out of this agreement. RCTC shall reimburse SCAG for any expenditures, including reasonable attorney fees, incuned in the defense against claims ultimately determined to be due to intentional or neglig .cts, errors or omissions, or violations of law on the part of RCTC, its officers, memo' ployees, or agents. RCTC further agrees to reimburse SCAG for claims, demand . or liability associated with the incomplete performance of work contained in Ex '$ ' r Cpin the event of breach or termination of this MOU by RCTC, unless suc� e�natio aused by SCAG's breach of this Agreement. Neither the failure o C to recru lifted interns for the Program, nor the termination of an intern se shall be cons i a breach by RCTC of this Agreement. 12. Records Retention and And',s a. RCTC shall maintain all soup performance of work initiated minimum of three „ 3) years fro resolution is a _rs a� each make all su of SCAG, th request. Copie SC ac which' elemen g in . :tion avat r. te, the ¢b eaus of ,1 be 4 . i e and fu C shall e ' h ted Accoun. g, ulate the cost rly identif ents, boo OU ecords connected with their annual SCAG OWP for a t to RCTC or until audit ever is later, and shall nsp .nd audit by representatives udits, orA "e Federal Government upon ed by SCAG upon request at no cost to intainunting system conforming to Generally (GAAP) to support Invoices which segregate and work moments by line item and produce Progress Reports mbursab}e costs and other expenditures by OWP work c. RCTC agrees Winclu _all costs associated with this MOU and any amendments thereto to be ex in the annual audit and in the schedule of activities to be examined under a single audit prepared by RCTC in compliance with Office of Management and Budget Circular A-133. d. Neither the pendency of a dispute nor its consideration by SCAG or the State shall excuse RCTC from full and timely performance in accordance with the terms of this MOU. 13. Federal Certifications and Assurances 55 a. RCTC shall adhere to the requirements contained in SCAG's annual Certification and Assurances (FHWA and FTA "Metropolitan Transportation Planning Process Certification") submitted as part of SCAG's OWP, pursuant to 23 CFR 450.334 and the 23 U.S.C. 1234. This Certification shall be published annually in SCAG's OWP. Such requirements shall apply to RCTC to the same extent as SCAG and may include, but are not limited to: (3) Title VI of the Civil Rights Act of 1964 and Title VI Assurance executed by California under 23 U.S.C. 324 and 29 U.S.C. 79 Pub. Law 105-178, 112 Stat. 107 and involvement of disadvantaged business projects (Sec. 105(f), Pub. L. 970424, The Americans with Disabilitiesf amended) and the United Stat implementing regulations (49 CFR b. RCTC shall additionally coi "Certifications and Assuranc Assurances Required of Eac compliance with 49 U.S.C. Cha assurances shal CTC to limited, the (I) Standard A (2) t.k>anx?ent,Fand ffQther Iponsibility Matters for Primary Covered cessor thereto, regarding the in FHWA and FTA funded CFR part 26); and 1990 (Pub. L. 1 epartment of Trans 7, and ith the requ 'A Assis ' and t 6, 104 Stat. 327, as tion (US DOT) is contained in the annual FTA " including "Certifications and obbying Certification" in in SCAG's OWP. Such and include but are not Drug Free 5� k P1a Agreement (4 Intergovernrfttal Revi,Assurance () �I,E tlA riminationAssuraiz ., (6) I11)3 ssurance (7) Nondiscrimination ori, the Basis of Disability (8) Certification and Assurances Required by the U.S. Office of Management and Budget c. Federal Lobbying Activities Certification. (1) By signing this MOU, RCTC certifies, to the best of its knowledge and belief, that no State or Federal funds have been paid or will be paid, by or on behalf of RCTC, respectively, to any person for influencing or attempting to influence an officer or employee of any State or Federal agency, a Member of the State Legislature or United States Congress, an officer or employee of the Legislature or Congress, or any employee of a Member of the Legislature or Congress in connection with the awarding of any State or Federal contract, the making of 56 any State or Federal grant, the making of any Federal loan, the entering into of any cooperative agreement, or the extension, continuation, renewal, amendment, or modification of any State or Federal contract, grant, loan, or cooperative agreement. (2) If any funds other than State or Federal funds have been paid or will be paid to any person for influencing or attempting to influence an officer or employee of any Federal agency, a Member of Congress, an officer or employee of Congress, or an employee of a Member of Congress in connection with this Federal grant, RCTC, as applicable, shall comple ,. d submit Federal Standard Form-LL, "Disclosure Form to Report Lobb f pX s in accordance with those form instructions." (3) This certification is a material repres placed when this MOU was enter prerequisite for making or ent 1352, Title 31, U.S.C. and by t between SCAG and the State. 14. Equal Employment Oppo In the performance of work unde and successors in interest, shall affi shall not unlawful applicant for ern ent origin, physical i( Ility (in marital status, demaW,, amil leave. ate, har se of se' ing HIVE medical of upon which reliance was . Submisst• �, this certification is a to this transact' posed by Section oposed Master Fun sfer Agreement ondiscn t to thi U, RCTC and its assignees e that '. ployees and contractors gainst any employee or lor`, , religious creed, national AIDS), m 'cal condition (cancer), age, leave, and denial of pregnancy disability RCTCshall ensure,t(Yl the ration an ment of its employees and applicants for empla rent are free` such' primination and harassment. RCTC shall comply with the prosions of the Fa'�rE�,>rmploynt and Housing Act (Government Code, Section 12900 et' sue) and the appt able regations promulgated there under (California Code of Regulations; Title 2, See iOn 7285.0 et seq.). The applicable regulations of the Fair Employment and.Housing Commission implementing the Government Code sections referenced above, are incorporated into this MOU by reference and made a part hereof as if set forth in full. RCTC shall give written notice of their obligations under this clause to labor organizations with which they have collective bargaining or other labor agreements. a. Noncompliance: In the event of noncompliance by RCTC with the nondiscrimination provisions of this MOU, SCAG may: (1) Withhold payments to the RCTC under this MOU until RCTC complies, and/or (2) Cancel, terminate or suspend the MOU, in whole or in part. • • 57 i If required by DOT, additional or alternate sanctions for noncompliance may be imposed. 15. Conflict of Interest RCTC shall comply with Federal and State conflict of interest laws, regulations policies. 16. Independent Contractor RCTC and its officers, employees and agents shall performance of this MOU, and not officers, employe 17. Disputes The parties agree to submit any disputes resorting to litigation. 18. Noncompliance and endent contractors in the actors or agents of SCAG. der this MOU to l mediation before In addition to such other remedie'" .'a eed by law, n {. e event of noncompliance with any grant condition or specific requie en MOU, i OU may be terminated. 19. Termination o, a. Termination b. giving written n daythe e AG at i actory work . Either ; "may terminate this MOU at any time by er party o Auch termination at least thirty (30) calendar uch to ation. In such event, all finished or other :a a scribed in the MOU shall be returned CTC s entitled to receive compensation for all or to the effective date of termination. through aiiy cause, RCTC shall fail to timely and adequately 3er this MOU, or if RCTC violates any of the covenants, agreements, `pr stipulatiOrts.' of this MOU, SCAG shall thereupon have the right to terminate the 1Gf0 giving not less than ten (10) calendar days written notice to RCTC of the mtent t erminate and specifying the effective date thereof. SCAG shall provide a reasonable opportunity for RCTC to cure prior to termination. In no event shall such opportunity to cure extend beyond the term of the MOU. In such event, all finished or unfinished documents and other materials as described in the MOU shall be returned to SCAG at its option, and RCTC shall be entitled to receive compensation for all satisfactory work completed prior to the effective date of termination. Term! fulfill rtS1- n for Cause pligations u 20. Non -Assignment 58 a. Neither party shall assign this MOU, or any part thereof, without the written consent of each party to this MOU. Any assignment without such written consent shall be void and unenforceable. b. The covenants and agreement of this MOU shall inure to the benefit of, and shall be binding upon each of the parties and their respective successors and assignees. 21. Time of the Essence Time is of the essence for each and every provision of th. [Si es on Folio gel • 59 SIGNATURE PAGE TO MEMORANDUM OF UNDERSTANDING NO.10-25-089-00 IN WITNESS WHEREOF, the parties have caused this MOU to be executed by their duly authorized representatives as of the dates indicated below: RIVERSIDE COUNTY TRANSPORTATION CO By: Anne Mayer Date Executive Director APPROVED AS TO FORM: By: Best, Best &; General Coun ger Date SO GOVERNMENTS By: Wayne Moors �;�. �� ' Date Chief Financial `Me APPROVED AS TO FORM: By: Joann Africa Date Chief Legal Counsel 60 AGENDA ITEM 11 • • RIVERSIDE COUNTY TRANSPORTATION COMMISSION DATE: April 26, 2010 TO: Budget and Implementation Committee FROM: Aaron Hake, Government Relations Manager THROUGH: John Standiford, Deputy Executive Director SUBJECT: State and Federal Legislative Update STAFF RECOMMENDATION: This item is for the Committee to: 1) Receive and file an update on state and federal legislative activities; 2) Approve the following bill positions: a) SB 1245 (Simitain) - OPPOSE; b) AB 1760 (Blumenfeld) - WATCH; c) AB 209$ (Miller) - SPONSOR and SUPPORT; d) AB 2620 (Eng) - OPPOSE; and 3) Forward to the Commission for final action. BACKGROUND INFORMATION: Federal Update After spending a year on healthcare reform, the next priority for Congress and the Administration is reform of the financial system. Also on the upcoming agenda is new climate change legislation named after its authors, "Kerry -Graham -Lieberman." At the time this staff report was written, the climate change bill had not been introduced; however, part of the plan may include a significant federal "gas fee" that would not go towards transportation purposes. Also, a second round of transportation spending associated with a jobs bill, as was speculated in early 2010, does not appear to be imminent. Meanwhile, the next six -year transportation authorization bill is not likely to become a major issue in Washington, D.C, until at least the end of 2010 or early 2011. Senate and House Committees have been holding hearings on transportation issues such as innovative financing and strengthening local -federal partnerships. These hearings keep dialogue going and allow Congress to receive policy input. Senator Barbara Boxer's Committee on Environment and Public Works (EPW) is beginning to draft its own authorization legislation, dubbed Moving Ahead for Progress in the 2151 Century (MAP-21). The Commission and its partners in Mobility 21, the Agenda Item 11 61 transportation advocacy coalition for Southern California, are preparing to submit its first set of written suggestions to EPW for crafting MAP-21. Reflecting the even -numbered year that we are in, House Democrats and Republicans have made pledges regarding earmarks they will not seek in the FY 2011 appropriations cycle. Democrats pledged to not seek earmarks on behalf of for -profit entities, while Republicans responded by pledging to seek no earmarks whatsoever. These moratoriums will apply for this year only. Neither caucus in the Senate has made any such pledge. The Commission submitted its earmark requests to its representatives in the House and Senate in February pursuant to Commission direction. Staff will work with member offices and Commission federal advocates on strategies to continue to promote Commission priority projects. In late March, Executive Director Anne Mayer and Government Relations Manager Aaron Hake traveled to Washington, D.C., to meet with EPW staff, Senator Dianne Feinstein's staff and Administration officials to discuss the Commission's innovative approach to financing and delivering the State Route 91 Corridor Improvement Project (SR-91 CIP). The goal of these meetings was to offer the Commission as a resource to Washington, D.C., officials on issues relating to tolling, innovative finance, corridor management, and project delivery, as well as to elevate the awareness in Washington, D.C., of the significance of the SR-91 CIP to Southern California and future federal policies. State Update Following enactment of the gas tax swap in March, it is expected that transportation will remain off the table in upcoming budget negotiations. However, Commission advocates and staff will remain attentive to budget negotiations as the Legislature continues to grapple with a spiraling deficit. The Commission received a significant victory at the April meeting of the California Transportation Commission (CTC). The CTC unanimously approved the SR-91 CIP for best -value design -build authority under the SBX2 4 pilot program. The Commission's application for design -build authority received enormous support from trades unions and other regional transportation agencies. The SR-91 CIP is estimated to create approximately 20,000 jobs when it goes to construction. Design -build is estimated to save three years in delivering the project and is necessary to receive financing. Given the importance of design -build to the Commission's ability to deliver SR-91 CIP, the CTC's decision is a historic milestone for the project and the 10-Year Western Riverside County Highway Delivery Plan. Agenda Item 11 • • 62 • Staff Recommended Bill Positions and Analysis Meanwhile, the Legislature is churning through hundreds of bills to meet committee deadlines. Below are a few bills of interest to the Commission and staff recommended positions. SB 1245 (Simitian): High -Occupancy Vehicles (HOV's): Tolls Staff Recommended Position: OPPOSE This bill would prohibit agencies such as the Commission from charging a toll for the use of a high -occupancy vehicle lane (HOV) that does not have a toll in place as of January 1, 2010. The bill also prohibits occupancy requirements for HOV lanes to be increased. The Commission's SR-91 CIP will include the conversion of an existing HOV lane on SR-91 to a tolled lane. The project will also include the addition of new lanes, including a general purpose lane. Based on investment - grade traffic and revenue studies to be conducted prior to opening the new Express Lanes facility, future toll policies set by the Commission may necessitate establishing a 3 + threshold for drivers to receive a free or reduced toll. This bill would remove authority from the Commission to make decisions regarding the operation of its own facility. SB 1245 would hamper the Commission's ability to meet its financial obligations and would impinge on local control of the SR-91 corridor. SB 1316 (Correa, 2008) provided for the local governance of the SR-91 corridor in Orange and Riverside Counties. Staff believes that the Legislature should respect existing law for the SR-91 corridor. AB 1780 (Blumenfeld): Design -Sequencing Contracts Staff Recommended Position: WATCH A number of years ago, state law created a design -sequencing pilot program in order to allow the use of this type of alternative project delivery for a limited number of projects. One such project happened to be the 60/91 /215 interchange in Riverside. Since the original bill was approved, the pilot program was expanded and the sunset date was extended. This bill would once again extend the sunset date to 2016. The Commission has no imminent plans to utilize design -sequencing, but the bill bears watching because design -sequencing, is often inappropriately compared to and thought of in the same way as design -build. The two forms of project procurement are substantially different, and it is important to make clear the outcome or existence of this bill or program should not alter or effect the need to expand and support the use of design -build procurements. Agenda Item 11 63 AB 2098 (Miller): Public contracts: Design -Build Contracts Staff Recommended Position: SPONSOR and SUPPORT Assemblyman Jeff Miller introduced AB 2098 to clarify existing law regarding the design -build pilot program approved by the Legislature in 2009. The pilot program allowed for design -build to be used on five projects nominated by local or regional agencies and 10 projects nominated by Ca!trans. All 15 projects must be approved by the CTC. The Commission's SR-91 CIP was the first project in the state approved by the CTC to be one of the five locally -nominated projects to use design - build. Professional Engineers in California Government (PECG) opposed the Commission's design -build application to the CTC and continues to raise concerns despite the CTC's action. AB 2098 may be amended throughout the legislative cycle as Riverside County legislators, the Commission, and PECG continue dialogue on SR-91 CIP and the design -build pilot program. AB 2620 (Eng): Transportation: Toll Facilities Staff Recommended Position: OPPOSE This bill would earmark a yet -to -be specified percentage of revenue generated from all highway toll facilities in California for the State Highway Operations, Preservation and Protection (SHOPP) account. AB 2620 would run roughshod over existing state law governing individual toll facilities, including the planned SR-91 and Interstate 15 CIP's, plus operational facilities in Orange and San Diego Counties and the Bay Area. On SR-91 and 1-15, tolls will be used to repay toll revenue bonds that will be used to finance construction of billion -dollar corridor improvements. AB 2620 would decrease the feasibility of financing these improvements and jeopardize the projects by carving away the revenue that would be necessary to pay bondholders. Furthermore, AB 2620 would strip away the Commission's ability to use toll revenue to make improvements along the SR-91 and 1-15 corridors in the general purpose lanes, adjacent public transit facilities, interchanges, or major arterials. Recent policy work by the Legislature has established a sound principle that toll revenue should be invested in the corridor where it is generated; this guaranteed that the users of the corridor benefit from tolls being paid to use it. AB 2620 would defy this principle by sending a percentage of revenue to SHOPP, which could be spent anywhere on the state highway system in California. While the Commission is supportive of the SHOPP program and bringing the state highway system to a state of good repair, it is inappropriate for the Legislature to raid local revenue to pay for its own backlog of projects throughout the state. The bill is sponsored by PECG. Commission staff has been in contact with transportation agencies throughout California who also plan to recommend an OPPOSE position to their respective boards of directors in May. Agenda Item 11 64