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12 December 12, 2012 Commission• • • TIME/DATE: LOCATION: Riverside County Transportation Commission MEETING AGENDA 9:30a.m. I Wednesday, December 12, 2012 BOARD ROOM County of Riverside Administrative Center 4080 Lemon Street, First Floor, Riverside &a COMMISSIONERS ~ Chair -John J. Benoit First Vice Chair -Karen Spiegel Second Vice Chair -Marion Ashley Bob Buster, County of Riverside John F. Tavaglione, County of Riverside Jeff Stone, County of Riverside John J. Benoit, County of Riverside Marion Ashley, County of Riverside Bob Botts I Don Robinson, City of Banning Roger Berg I Jeff Fox, City of Beaumont Joseph DeConinck I To Be Appointed; City of Blythe Ella Zanowic I Jeff Hewitt, City of Calimesa Mary Craton I Barry Talbot, City of Canyon Lake Greg Pettis I Kathleen DeRosa, City of Cathedral City Steven Hernandez I Eduardo Garcia, City of Coachella Karen Spiegel I Eugene Montanez, City of Corona Scott Matas I Yvonne Parks, City of Desert Hot Springs Adam Rush I Ike Bootsma, City of Eastvale Larry Smith I Robert Youssef, City of Hemet Douglas Hanson I Patrick Mullany, City of Indian Wells Glenn Miller I Michael Wilson, City of Indio Frank Johnston I Micheal Goodland, City of Jurupa Valley Terry Henderson I Don Adolph, City of La Quinta Bob Magee I Melissa Melendez, City of Lake Elsinore Darcy Kuenzi I Wallace Edgerton, City of Menifee Marcelo Co I Richard Stewart, City of Moreno Valley Rick Gibbs I Kelly Bennett, City of Murrieta Berwin Hanna I Kathy Azevedo, City of Norco Jan Harnik I William Kroonen, City of Palm Desert Ginny Foat I Steve Pougnet, City of Palm Springs Daryl Busch I AI Landers, City of Perris To Be Appointed I Scott Hines, City of Rancho Mirage Steve Adams I Andy Melendrez, City of Riverside Andrew Kotyuk I Scott Miller, City of San Jacinto Ron Roberts I Jeff Comerchero, City of Temecula Ben Benoit I Timothy Walker, City of Wildomar Basem Muallem, Governor's Appointee RECORDS Comments are welcomed by the Commission. If you wish to provide comments to the Commission, please complete and submit a Speaker Card to the Clerk of the Board. Tara Byerly From: Sent: To: Cc: Subject: Attachments: Importance: Tara Byerly Thursday, December 06, 2012 7:35AM Tara Byerly Jennifer Harmon RCTC December Commission Agenda Conflict of Interest Form. pdf; Conflict of Interest Memo.pdf High Good Morning Commissioners, The December Commission Agenda for the meeting scheduled for Wednesday, December 12@ 9:30 a.m. for the iPad Users is available. Please copy this link: http://www.rctc.org/uploads/media items/december-12-2012.original.pdf In addition, attached is the conflict of interest memo and the form for your review. Please let me know if you have any questions. Thank you. Respectfully, TaraS. Byerly Senior Adn1inistrative Assistant 4080 Lemon Street, 3rd Floor Riverside, CA 92501 (951) 787-·7141 1 Riverside County Transportation Commission TO: Riverside County Transportation Commission FROM: Jennifer Harmon, Office and Board Services Manager DATE: December 4, 2012 SUBJECT: Possible Conflicts of Interest -Riverside County Transportation Commission Agenda of December 12, 2012 The December 12, 2012 agenda of the Riverside County Transportation Commission includes items that may raise possible conflicts of interest. A Commissioner may not participate in any discussion or action concerning a contract or amendment if a campaign contribution of more than $250 is received in the past 12 months or 3 months following the conclusion from any entity or individual listed. Agenda Item No. 8 -Agreement with CH2M Hill for the Preparation of a Project Report and Environmental Document for the State Route 79 Realignment Project Consultant(s): CH2MHILL 6 Hutton Centre Drive, Suite 700 Santa Ana, CA 92707 Tom Lonta, Project Manager RCTC Conflict of Interest Form Purpose: This form is provided to assist members of the RCTC Commissioners in meeting requirements of Government Code Section 84308 and 87100 in documenting conflict of interests as related to RCTC Commission/Committee agenda items. Instructions: Under certain circumstances, RCTC Commission may be required to disclose and disqualify themselves from participating in, influencing, or voting on an agenda item due to personal income, real property interests, investments, business positions, or receipt of campaign contributions. If applicable, Commissioners must personally state the following information, for entry into the public record, prior to consideration of the involved agenda item(s) and turn in the completed form to the Clerk of the Board prior to leaving the meeting. An RCTC member may not participate in any discussion or action concerning a contract or amendment if a campaign contribution of more than $250 is received in the past 1 2 months or 3 months following the conclusion from any entity or individual. I. Board Member Information Board Member Name ... City /County Name Meeting Date M ill<-tor-s._ -trJ ~'C--( R.IV~rll~· CPvA-7'/ ;-,_-t .,_ -tL II. Campaign Contributions Dcd'ls- ~ 1. I have a disqualifying campaign contribution of over $250 from , (Identify the name of the company and/or Individual) and therefore I am abstaining from participation on Agenda item , Subject: 2. I have a disqualifying campaign contribution of over $250 from , (Identify the name of the company and/or Individual) and therefore I am abstaining from participation on Agenda item , Subject: 3. I have a disqualifying campaign contribution of over $250 from , (Identify the name of the company and/or Individual) and therefore I am abstaining from participation on Agenda item , Subject: 4. I have a disqualifying campaign contribution of over $250 from , (Identify the name of the company and/or Individual) and therefore I am abstaining from participation on Agenda item , Subject: Ill. Financial Interest --· A 1. I have a financial interest of /5-~ ffl ,p'<k/"""1 ; .A. -~ · ~.,~-Jt_,lf-.<~~c (State income, real property interest, inJestmeiif'<Sr business position) . ~ lldeng;; nafileotmpa'jef1V,)fl'{!fl!Tit>nl and therefore I am abstaining from participation on Agenda ltem~Subjec~·-E cr 2. I have a financial interest of , from/in {State income, real property interest, investment or business position) (Identify name of company or property location) and therefore I am abstaining from participation on Agenda Item __ , Subject: • IV. Signature Board Member Signatu~ ¥ry Date: [2 -l ""L -l "l.._ Please remember you must state the information into the public record prior to consideration of the involved agenda item(s) and turn in the completed form to the Clerk of the Board prior to leaving the meeting. • • RIVERSIDE COUNTY TRANSPORTATION COMMISSION www. rete. org AGENDA* *Actions may be taken on any item listed on the agenda 9:30a.m. Wednesday, December 12, 2012 BOARDROOM County of Riverside Administrative Center 4080 Lemon Street, First Floor, Riverside, CA 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 ageoda 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. rete. org. In compliance with the Americans with Disabilities Act and Government Code Section 54954.2, if special assistance is needed to participate in a Commission meeting, please contact the Clerk of the Board at (951) 787-7141 .. Notification of at least 48 hours prior to meeting time will assist staff in assuring that reasonable arrangements can be made to provide accessibility at the meeting. 1 . CALL TO ORDER 2. PLEDGE OF ALLEGIANCE 3. ROLL CALL 4. PUBLIC COMMENTS -Each individual speaker is limited to speak three (3) continuous minutes or less. The Commission may, either at the direction of the Chair or by majority vote of the Commission, waive this three minute time limitation. Depending on the number of items on the Agenda and the number of speakers, the Chair may, at his/her discretion, reduce the time of each speaker to two (2) continuous minutes. In addition, the maximum time for public comment for any individual item or topic is thirty (30) minutes. Also, the Commission may terminate public comments if such comments become repetitious. Speakers may not yield their time to others without the consent of the Chair. Any written documents to be distributed or presented to the Commission shall be submitted to the Clerk of the Board. This policy applies to Public Comments and comments on Agenda Items. • Under the Brown Act, the Commission should not take action on or discuss matters raised during public comment portion of the agenda that are not listed on the agenda. Commission members may refer such matters to staff for factual information or to be placed on the subsequent agenda for consideration. 5. Riverside County Transportation Commission Agenda December 12, 2012 Page 2 APPROVAL OF MINUTES-NOVEMBER 14, 2012 6. ADDITIONS I REVISIONS -The Commission may add an item to the Agenda after making a finding that there is a need to take immediate action on the item and that the item came to the attention of the Commission subsequent to the posting of the agenda. An action adding an item to the agenda requires 2/3 vote of the Commission. If there are less than 2/3 of the Commission members present, adding an item to the agenda requires a unanimous vote. Added items will be placed for discussion at the end of the agenda. 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. 7 A. PROPOSED 2013 COMMISSION/COMMITTEE MEETING CALENDAR Page 1 Overview This item is for the Commission to adopt its 2013 Commission/Committee Meeting Calendar. 78. FISCAL YEAR 2011112 COMMISSION AUDIT RESULTS Page5 Overview This item is for the Commission to receive and file the FY 2011/12: 1) 2) 3) 4) 5) 6) 7) 8) 9) 1 0) Comprehensive Annual Financial Report (CAFR); Local Transportation Fund (L TF) Financial and Compliance Report; State Transit Assistance (ST A) Fund Financial and Compliance Report; Proposition 1 B Rehabilitation and Security Project Accounts Financial and Compliance Report; Compliance Report for Single Audit; Commercial Paper Compliance Report; Auditor Required Communications Report; Agreed-Upon Procedures Report related to the Appropriations Limit Calculation; Agreed-Upon Procedures Report related to the Commuter Assistance Program incentives; and Management certifications. • • • • • • Riverside County Transportation Commission Agenda December 12, 2012 Page 3 7C. FEDERAL TRANSIT ADMINISTRATION TRIENNIAL REVIEW Page9 Overview This item is for the Commission to receive and file a report on the Federal Transit Administration's (FT A) FY 2011 /1 2 Triennial Review of the Commission. 7D. REVISIONS TO PROCUREMENT POLICY MANUAL Page 27 Overview This item is for the Commission to: 1) Approve the revised Riverside County Transportation Commission Procurement Policy Manual for the procurement and contracting activities undertaken by the Commission, pursuant to legal counsel review, as to conformance to state and federal law; and 2) Adopt Resolution No. 12-031, #Resolution of the Riverside County Transportation Commission Regarding the Revised Procurement Policy Manual". 7E. QUARTERLY FINANCIAL STATEMENTS Page 84 Overview This item is for the Commission to receive and file the Quarterly Financial Statements for the period ending September 30, 2012. 7F. QUARTERLY SALES TAX ANALYSIS PageBB Overview This item is for the Commission to receive and file the sales tax analysis for Quarter 2 (Q2) 2012. 7G. QUARTERLY INVESTMENT REPORT Page 96 Overview This item is for the Commission to receive and file the Quarterly Investment Report for the quarter ended September 30, 2012. Riverside County Transportation Commission Agenda December 12, 2012 Page 4 7H. REVISED STATE ROUTE 91 RELOCATION PLAN Overview CORRIDOR IMPROVEMENT PROJECT Page 112 This item is for the Commission to adopt the State Route 91 Corridor Improvement Project Relocation Plan (Relocation Plan). 71. INTERSTATE 215 CENTRAL WIDENING PROJECT FROM SCOTT ROAD TO NUEVO ROAD -CO~STRUCTION AND MAINTENANCE AGREEMENT Page 115 Overview This item is for the Commission to: • 1) Approve Agreement No. 12-31-082-00 between the Commission, Caltrans, and Burlington Northern Santa Fe Railway Company (BNSF) for work associated with construction and maintenance of the Ethanac Road overhead bridge related to the Interstate 21 5 Central widening project; and 2) Authorize the Chair or the Executive Director, pursuant to legal • counsel review, to execute the agreement on behalf of the Commission. 8. AGREEMENT WITH CH2M HILL FOR THE PREPARATION OF A PROJECT REPORT AND ENVIRONMENTAL DOCUMENT FOR THE STATE ROUTE 79 REALIGNMENT PROJECT Page 136 Overview This item is for the Commission to: 1) Approve Agreement No. 02-31-043-07, Amendment No. 7 to Agreement No. 02-31-043, with CH2M Hill to perform additional environmental analysis and design support for the completion of the circulation of the draft environmental impact report/draft environmental impact statement (EIR/EIS) and project report for the State Route 79 realignment project for a total amount not to exceed $1 ,480,000; 2) Authorize the Chair, pursuant to legal counsel review, to execute the agreement on behalf of the Commission; 3) Authorize the Executive Director, pursuant to legal counsel review, to execute non-funding agreements for the environmental clearance and • design of the project; • • • Riverside County Transportation Commission Agenda December 12, 2012 Page 5 4) 5) Approve budget adjustments of $1,480,000 to increase preliminary expenditures and interfund transfers between 2009 Measure A Western County highway funds and Transportation Uniform Mitigation Fee (TUMF) funds; and Request staff to bring back for Commission action a final scope of work and cost once the public circulation period is completed in order to finalize the remaining tasks of the project through the final EIR/EIS and record of decision (ROD). 9. AGREEMENT WITH POWELL CONSTRUCTORS INC. FOR THE CONSTRUCTION OF INTERSTATE 215 WIDENING PROJECT FROM BLAINE STREET TO MARTIN LUTHER KING BOULEVARD, IN THE CITY OF RIVERSIDE Page 149 Overview This item is for the Commission to: 1 ) Award Agreement No. 13-31-003-00 to Powell Constructors Inc. (Powell) for the construction of the Interstate 215 widening project from Blaine Street to Martin Luther King (MLK) Boulevard Undercrossing (UC) in the city of Riverside in the amount of $1 ,653, 176, plus a contingency amount 9f $302,934 for potential change orders, state furnished materials and supplemental work during construction, for a total not to exceed amount of $1,956,110; and 2) Authorize the Chair or Executive Director, pursuant to legal counsel review, to execute the agreement on behalf of the Commission. 10. SUNSET AVENUE GRADE SEPARATION PROJECTS Page 159 Overview This item is for the Commission to allocate $1 0 million in federal Congestion Mitigation Air Quality (CMAQ) funds to the city of Banning (Banning) in support of the Sunset Avenue grade separation project . Riverside County Transportation Commission Agenda December 12, 2012 Page 6 11. ELECTION OF RIVERSIDE COUNTY TRANSPORTATION COMMISSION OFFICERS AND APPOINTMENT OF EXECUTIVE COMMITTEE MEMBERS Page 162 Overview This item is for the Commission to: 1 ) The Commission to conduct an election of officers for 201 3 - Chair, Vice Chair, and Second Vice Chair; 2) The cities of Corona, Moreno Valley, Murrieta, Riverside, and Temecula to appoint two representatives to the Executive Committee; 3) The cities of Banning, Beaumont, Calimesa, Canyon Lake, Eastvale, Hemet, Jurupa Valley, Lake Elsinore, Menifee, Norco, Perris, San Jacinto, and Wildomar to appoint one representative to the Executive Committee; and 4) The cities of Blythe, Cathedral City, Coachella, Desert Hot .~prings, Indian Wells, Indio, La Quinta, Palm Desert, Palm Springs, and Rancho Mirage to appoint one representative to the Executive Committee. 12. ITEM(S) PULLED FROM CONSENT CALENDAR AGENDA • 13. COMMISSIONERS I EXECUTIVE DIRECTOR REPORT Page 166 • Overview This item provides the opportunity for the Commissioners and the Executive Director to report on attended meetings/conferences and any other items related to Commission activities. • Report on the American Public Transportation Association Annual Meeting 2012, by Commissioners Daryl Busch, Ron Roberts, and Karen Spiegel 14. CLOSED SESSION 14A. CONFERENCE WITH REAL PROPERTY NEGOTIATORS Pursuant to Government Code Section 54956.8 Item APN(s) Property Purchaser(s) 1 249-060-033 Cole 10 Riverside CA, LP, a Delaware limited partnership 15. ADJOURNMENT The next Commission meeting and is scheduled to be held at 9:30 a.m., Wednesday, January 9, 2013, Board Chambers, First Floor, County Administrative Center, 4080 Lemon Street, Riverside. • RIVERSIDE COUNTY TRANSPORTATION COMMISSION ROLL CALL DECEMBER 12, 2012 County of Riverside, District I County of Riverside, District II County of Riverside, District HI County of Riverside, District IV County of Riverside, District V City of Banning City of Beaumont City of Blythe City of Calimesa City of Canyon Lake City of Cathedral City City of Coachella City of Corona City of Desert Hot Springs City of Eastvale City of Hemet City of Indian Wells City of Indio City of Jurupa Valley City of La Quinta City of Lake Elsinore City of Menifee City of Moreno VaHey City of Murrieta City of Norco City of Palm Desert City of Palm Springs City of Perris City of Rancho Mirage City of Riverside City of San Jacinto City of Temecula City of Wildomar . Governor's Appointee, Caltrans District 8 Absent Ll ~ Ll D Ll D Ll D Ll D Ll D Ll D Ll ~ Ll D Ll D Ll ;:J Ll D Ll D Ll D % D Ll D Ll D RIVERSIDE COUNTY TRANSPORTATION COMMISSION COMMISSIONER SIGN-IN SHEET DECEMBER 12, 2012 NAME AGENCY E MAIL ADDRESS /'? \ //CCJ 1/(Jft ~ v \1 "" {/ ..... DETACH AND SUBMIT TO THE CLERK OF THE BOARD DATE: 'n:>&CJ I 2 J w I '2...-CHECK IF SUBJECT OF PUBLIC COMMENTS: ,P( PUBLIC COMMENTS: .tf01 E TJS o L) N k :;;i>'~fl 7J o IJ I-<.· cO=rrtJ N .5 AGENDA ITEM NO.: L1 SUBJECT OF (AS LISTED ON THE AGENDA)-.\..----AGENDA ITEM=----~-------------NAME: R( A, ('{3frRNEV" ~ I ADDRESS: T7_r .rf£-.St'--T . ' ·fZL a !Gij(:iff~ .. t:;} -11 r z __ .._, ...., , REPRESENTING: 1 ( ( IC! 1 l ..:;;r I''V • ~ ·;.r v rv 1 <. ( 1 1 ''--r •-/" BUSINESS ADDRESS: CITY ZIP CODE Tara Byerly From: Sent: To: Cc: Subject: Attachments: Importance: Tara Byerly Wednesday, December 12, 2012 1:12 PM Tara Byerly Jennifer Harmon RCTC Commission Meeting 12.12.12-Public Comment Period Barney Barnetts Highgrove Happenings 12.12.12.pdf High Good Afternoon Commissioners, Per Barney Barnett's request under public comments at the Commission meeting this morning I have attached Mr. Barnett's hand out titled "Highgrove Metrolink Station" dated December 12, 2012. Thank you. Respectfully, Tara S. Byerly Senior Adn~inistrative Assistant 4080 Lemon Street, 3rd Floor Riverside, CA 92501 (951) 787-7141 1 Highgrove Metrolink Station WHY! WHY! WHY! Why has the Highgrove location been opposed for 11 years? Dec. 12, 2012 Only one mile distance between Marlborough Ave. and Highgrove, but $20 Million Dollar difference between these 2 locations. Here's WHY: $ 8,146,000.00 cost of property $ 7,000,000.00 cost of building a station at Marlborough $15,000,000.00 $ 5,347,000.00 already invested in Highgrove (Measure "A") $20,347,000.00 Highgrove is Not Part of PVL because you only need the width of track. The public has been offended by investing$5 .3 million dollars in the excess property that you don't need for the PVL, and then calling it an "uneconomic remnant". ($3,277,500.00 vs. $8,625,000.00) So WHAT happens to 62% of this excess land? Only 1 station is needed. And both platforms could use the same parking lot: The platform on the WEST side for the existing daily Metrolink trains, and another platform on the EAST side for future trains between Perris and San Bernardino. It is time to ask your leaders WHY Highgrove is still being opposed? You have to have Highgrove, but Marlborough is not needed. Sell the Marlborough property, don't stop in the Hunter Park Area, and put your $20 million dollar investment to good use by building a parking lot and short road through your Highgrove property that would serve 3 cities instead of 2. Thank you for looking at our web. But if you haven't, please go to: W\Vw.highgrovehappenings.net and click on the red box under the map to compare Metrolink Station locations and costs. R. A. "Barney" Barnett Chmn.: Highgrove Municipal Advisory Council Editor: Highgrove Happenings Newspaper 4 7 4 Prospect Ave. Highgrove, Ca. 92507 (951) 683 4994 E-mail: highgrovenews@roadrunner.com Web site: www.highgrovehappenings.net • • • RIVERSIDE COUNTY TRANSPORTATION COMMISSION MINUTES Wednesday, November 14, 2012 1. CALL TO ORDER The Riverside County Transportation Commission was called to order by Chair John J. Benoit at 9:31 a.m. in the Board Room at the County of Riverside Administrative Center, 4080 Lemon Street, Riverside, California, 92501. 2. PLEDGE OF ALLEGIANCE At this time, Chair Benoit led the Commission in a flag salute. 3. ROLL CALL Commissioners/ Alternates Present Steve Adams Marion Ashley Roger Berg Ben Benoit John J. Benoit Bob Botts Daryl Busch Marcelo Co* Mary Craton Joseph DeConinck 'Ginny Foat Rick Gibbs Berwin Hanna Douglas Hanson Terry Henderson Steven Hernandez Frank Johnston Darcy Kuenzi Andrew Kotyuk * Bob Magee* Scott Matas Glenn Miller Greg Pettis Ron Roberts Larry Smith Karen Spiegel Jeff Stone Ella Zanowic *Arrived after the meeting was called to order Commissioners Absent Bob Buster Jan Harnik Basem Muallem Adam Rush John F. Tavaglione City of Rancho Mirage Riverside County Transportation Commission Minutes November 14, 2012 Page 2 4. PUBLIC COMMENTS At this time, Chair Benoit expressed apprec1at1on to Commissioner Darcy Kuenzi for serving on the Commission as she has been an outstanding contributor. There were no requests to speak from the public. 5. APPROVAL OF MINUTES-OCTOBER 10, 2012 M/S/C (Ashley/Hanna) to approve the minutes as submitted. Abstain: J. Benoit and Smith 6. INTERSTATE 10 EMERGENCY ACTION PLAN UPDATE Juan Perez, Transportation and Land Management Director for Riverside County, discussed the Interstate 1 0 Emergency Action Plan (1-1 0 EAP), highlighting the following areas: • Coordinated effort; • Partnerships; • Incident management; • Ease travel; • Coordination; • Major infrastructure; and • Traffic management . Patti Romo, Deputy Director of Transportation for Riverside County, expressed appreciation for the efforts of various agencies that participated in the development of the 1-10 EAP and presented the following information: • Map depicting the 1-1 0 in the Pass Area and the various proposed bypass roads; • Map depicting the 1-10 Bypass westward extension and the Tamarack, Seminole, and Garnet extensions including future interim changeable message signs (CMS); • Two additional, future CMS being proposed by Caltrans located on the 1-10 near Indio, Desert Center, and Blythe areas; • 1-1 0 Bypass proposed alternatives; • Overall target schedule and project cost; and • Next steps. • • • • • • Riverside County Transportation Commission Minutes November 14, 2012 Page 3 At this time, Commissioners Marcelo Co, Andrew Kotyuk, and Bob Magee arrived at the meeting. Juan Perez explained a memorandum of understanding (MOU) was developed involving all partner agencies. The Commission will be asked to consider authorizing the Executive Director to sign the MOU as a partner. He discussed the continued coordination and resources with the partner agencies. Commissioner Marion Ashley suggested the city of Beaumont be included as a partner agency. He discussed the importance of this project for all of Riverside County and the augmentation of this project along with the Potrero Bypass in the city of Beaumont. He commended Juan Perez and Patti Romo for their leadership. Chair Benoit stated it is necessary to conduct regular meetings with the partner agencies on this plan. He discussed the efforts by Caltrans to improve communication with the California Highway Patrol (CHP) as well as create breaks in the barriers through the Pass Area. He asked for the average daily traffic (ADT) on the westbound 1-10 . Juan Perez replied the ADT is over 130,000 per day in both directions. Commissioner Bob Botts expressed his support of this plan and appreciation to the county of Riverside and Commissioner Ashley for their leadership. He discussed meetings with various partner agencies concerning the Pass Area and the importance of law enforcement's involvement in traffic control. Commissioner Ashley stated a $1.7 million earmark was obtained by the city of Banning that has been transferred to the bypass area project. He discussed the MOU with the city of Banning, the county of Riverside, and the Morongo Band of Mission Indians. He expressed the Cabazon area will be one of the major job generators in the County in the next 1 0-1 5 years. Commissioner Scott Matas expressed his appreciation to the partner agencies. He discussed the Coachella Valley Association of Governments' provisional plan after an incident occurred about five years ago in the Pass Area. He then asked Juan Perez to provide additional information regarding the CMS. Juan Perez replied one of the CMS will be located southbound on the SR-62 before Dillon Road and the other CMS will be located on the 1-1 0 westbound before Indian Avenue. He discussed the various connections available to commuters in that area if there is an incident in the Pass Area. Riverside County Transportation Commission Minutes November 14, 2012 Page 4 Commissioner Roger Berg expressed his apprec1at1on for an excellent plan and suggested involving the offices of emergency services, community services, volunteers, and police and sheriff departments to ensure traffic moves efficiently on the streets once it is diverted off the freeway. Patti Romo concurred with Commissioner Berg's comments and stated emergency services are involved and the county will be working to refine the plan to address those issues. In response to Chair Benoit's question regarding meeting frequency, Patti Romo replied the meetings will be held quarterly. She then discussed the importance of conducting quarterly meetings. At Commissioner Ginny Foat's request, Juan Perez discussed the partnership and funding opportunities available to bring this plan to fruition. Commissioner Hernandez concurred with the Commissioners' comments and discussed the importance for the Commission to play a role in this plan, particularly in the funding. Commissioner Stone suggested working with Caltrans for an encroachment permit and invest in storage containers along the 1-1 0 in the Pass Area to assist commuters stranded by an incident. Chair Benoit concurred with Commissioner Stone's idea and suggested the containers be stored at the Caltrans yard in the Pass Area. Anne Mayer discussed the Commission's involvement in the discussions and ways the Commission can participate. She stated an MOU will be brought to the Commission for approval that memorializes the Commission's commitments to this strategic effort. 7. RESOLUTION CONSIDERING STATE ROUTE 91 CORRIDOR IMPROVEMENT PROJECT ENVIRONMENTAL IMPACT REPORT AND APPROVING THE STATE ROUTE 91 CORRIDOR IMPROVEMENT PROJECT Cathy Bechtel, Project Development Director, provided an overview of the resolution to adopt the final environmental impact report and approve the State Route 91 Corridor Improvement Project (SR-91 CIP). At this time, Andrew Kotyuk left the meeting. • • Chair Benoit expressed appreciation for the presentation and stated there are • no questions from Commissioners. • • • Riverside County Transportation Commission Minutes November 14, 2012 Page 5 M/S/C (Hanna/B. Benoit) to adopt Resolution No. 12-028, "Resolution of the Riverside County Transportation Commission Considering the Final Environmental Impact Report (SCH #2008071075), Adopting Responsible Agency Findings Pursuant to the California Environmental Quality Act, Adopting a Mitigation Monitoring and Reporting Program, Adopting a Statement of Overriding Considerations, and Approving the State Route 91 Corridor Improvement Project". Anne Mayer expressed appreciation for the Commission's support for the SR-91 CIP and introduced and congratulated the project team. 8. ADDITIONS I REVISIONS There were no additions/revisions to the agenda. 9. CONSENT CALENDAR 9A. M/S/C (Matas/Miller) to approve the Consent Calendar items. Abstain: Ashley, Agenda Item 9D and 9E Berg, Agenda Item 9D Pettis, Agenda Item 9F SINGLE SIGNATURE AUTHORITY REPORT Receive and file the Single Signature Authority report for the first quarter ended September 30, 2012. 9B. AGREEMENT WITH BURLINGTON NORTHERN SANTA FE RAILWAY COMPANY FOR THE RELOCATION OF THE EXISTING PORPHYRY YARD TRACKS REQUIRED FOR THE CONSTRUCTION OF THE STATE ROUTE 91 CORRIDOR IMPROVEMENT PROJECT 1) Approve Agreement No. 13-31-038-00 to Burlington Northern Santa Fe Railway Company (BNSF) for the relocation of the ex1stmg BNSF Porphyry Yard tracks required for the construction of the State Route 91 Corridor Improvement Project (SR-91 CIP) in the amount of $4,921,300, plus a contingency amount of $492,200 (1 0 percent), for a total 2) amount not to exceed $5,413,500; Authorize the Chair or the Executive Director, pursuant to legal counsel review, to execute the agreement on behalf of the Commission; and Riverside County Transportation Commission Minutes November 14, 2012 Page 6 3) Authorize the Executive Director, or designee, to approve contingency work up to the total amount not to exceed as may be required for the work associated with the relocation of the existing Porphyry Yard tracks. 9C. AGREEMENTS WITH AT&T, QUESTAR, SOUTHERN CALIFORNIA EDISON, AND SOUTHERN CALIFORNIA GAS CO., FOR FINAL ENGINEERING AND CONSTRUCTION FOR UTILITY RELOCATIONS FOR THE STATE ROUTE 91 CORRIDOR IMPROVEMENT PROJECT 1) Approve the following agreements for final engineering and construction for utility relocations for the State Route 91 Corridor Improvement Project (SR-91 CIP): a) Agreement No. 13-31-045-00 with AT&T; b) Agreement No. 13-31-047-00 with Questar; c) Agreement No. 13-31-044-00 with Southern California Edison (SCE); and d) Agreement No. 1 3-31-046-00 with Southern California Gas Co. (SoCaiGas); for a combined amount of $17,465,750, plus a contingency amount of $1,746,250 (10 percent), for a total amount not to exceed $19,212,000; 2) Authorize the Executive Director, pursuant to legal counsel review, to execute the agreements on behalf of the Commission; and 3) Authorize the Executive Director, or designee, to approve contingency work up to the total authorized amount as may be required for these utility relocation agreements for final engineering and construction. 9D. ENVIRONMENTAL PERMITS REQUIREMENTS FOR INTERSTATE 215 CENTRAL WIDENING PROJECT BETWEEN SCOTT ROAD AND NUEVO ROAD 1) Approve Agreement No. 13-31-048-00 with the U.S. Army Corps of Engineers (ACOE) and the Treasurer-Tax Collector of the County of Riverside (County Treasurer) for an escrow account in the amount of $350,000 as financial security for mitigation obligations to be completed by the Commission in connection with environmental permit requirements for the Interstate 215 Central widening project between Scott Road 2) and Nuevo Road; and Authorize the Chair or Executive Director, pursuant to legal counsel review, to execute the escrow agreement. • • • • • • Riverside County Transportation Commission Minutes November 14, 201 2 Page 7 9E. AGREEMENTS RELATED TO THE CONSTRUCTION OF THE INTERSTATE 215 CENTRAL WIDENING PROJECT FROM SCOTT ROAD TO NUEVO ROAD IN THE CITIES OF MENIFEE AND PERRIS 1) Approve Agreement No. 10-31-001-01, Amendment No.1 to Agreement No. 10-31-001-00, with URS Corporation (URS) to perform additional design support during the construction of the Interstate 215 Central widening project for $550,354 using remaining contract authorization; 2) Approve Agreement No. 13-31-035-00 with the California Highway Patrol (CHP) for Construction Zone Enhanced Enforcement Program (COZEEP) services during the construction of the 1-215 Central widening project in an amount not to exceed $380,000; 3) Approve Agreement No. 11-31-1 09-01, Amendment No. 1 to Agreement No. 11-31 ~ 109-00, with the Pechanga Band of Luiseno Indians to increase the contract amount by $100,000 for Native American monitoring services during the construction of the 1-21 5 Central widening project for a total amount not to 4) exceed $125,000; and Authorize the Chair ·or Executive Director, pursuant to legal counsel review, to execute the agreements on behalf of the Commission. 9F. AGREEMENTS FOR FEDERAL LEGISLATIVE ADVOCACY SERVICES 1) Award the following agreements to provide federal legislative advocacy services for a four-year term, and two one-year options to extend the agreements, for up to a six-year period of performance, in an amount not to exceed an aggregate value of $1 ,032,000; a) Agreement No. 13-14-008-00 with Ruffalo and Associates, LLC; b) Agreement No. 13-14-034-00 with Cliff Madison Government Relations, Inc; and 2) Authorize the Chair or Executive Director, pursuant to legal counsel review, to execute the agreements, including option years, on behalf of the Commission . Riverside County Transportation Commission Minutes November 14, 2012 Page 8 9G. RESOLUTION HONORING JOSEPH TAVAGLIONE AND DEDICATION OF THE RIVERSIDE-DOWNTOWN STATION IN· HIS HONOR 1) Adopt Resolution No. 12-030, "Resolution Honoring the Important Contributions of Joseph Tavaglione"; 2) Rename and dedicate the Riverside-Downtown Station in Mr. Tavaglione's honor; and 3) Present the approved resolution to Mr. Tavaglione at a formal event on Wednesday, December 5. 10. ITEM(S) PULLED FROM CONSENT CALENDAR There were no items pulled from the Consent Calendar. 11. COMMISSIONERS/EXECUTIVE DIRECTOR'S REPORT 11A. Commissioner Gibbs stated the 1-215 South Ribbon Cutting I 1-215 Central Ground Breaking Ceremony held on October 29 was a success and expressed gratitude to Anne Mayer and staff for their efforts. 11 B. Commissioner Henderson acknowledged the importance of the SR-91 CIP and commended staff for its management of this project and keeping the Commission apprised through the process. 11 C. Anne Mayer announced: • The Commission's Annual R-eport was distributed to the Commissioners and additional copies are available; • The dedication of the Riverside-Downtown Station in honor of Joseph Tavaglione will be held Wednesday, December 5 at 10:00 a.m.; • The California Transportation Commission (CTC) reception will be held on Wednesday, December 5, 5:30 p.m. -7:30 p.m. at the County Administrative Center (CAC), First Floor; • The CTC meeting is scheduled for Thursday, December 6 in the CAC Board Room; • Southern California Association of Governments' will be hosting its Annual Economic Forecast Conference in los Angeles on Thursday, December 6; and • The 2012 Riverside-San Bernardino Economic Forecast Conference hosted by Beacon Economics and UC Riverside will be held on Thursday, December 6 in Ontario. • • • • • • Riverside County Transportation Commission Minutes November 14, 2012 Page 9 12. ADJOURNMENT IN HONOR OF COMMISSIONER GORDON MOLLER There being no further business for consideration by the Riverside County Transportation Commission, the meeting was adjourned at 10:34 a.m. in honor of Commissioner Gordon Moller from Rancho Mirage who passed away on October 22. The next Commission meeting is scheduled to be held at 9:30 a.m., Wednesday, December 12, 2012, in the Board Room, at the County of Riverside Administrative Center, 4080 Lemon Street, Riverside, California. Respectfully submitted, Jennifer Harmon Clerk of the Board • • • RIVERSIDE COUNTY TRANSPORTATION COMMISSION DATE: December 12, 2012 TO: Riverside County Transportation Commission FROM: Jennifer Harmon, Office and Board Services Manager THROUGH: Anne Mayer, Executive Director SUBJECT: Proposed 2013 Commission/Committee Meeting Calendar STAFF RECOMMENDATION: This item is for the Commission to adopt its 2013 Commission/Committee Meeting Calendar. BACKGROUND INFORMATION: The Commission is scheduled to meet on the second Wednesday of each month at 9:30 a.m. Additionally, the Executive Committee is scheduled at 9:00 a.m. on the same day. For 2013, the annual Commission Workshop will be held on Thursday, January 31 and Friday, February 1 at the Embassy Suites -La Quinta. Due to the timing of the annual workshop, the January Budget and Implementation and Western Riverside County Programs and Projects Committees will not be scheduled. The Commission's policy committees -Budget and Implementation and Western Riverside County Programs and Projects -meet on the fourth Monday of each month at 9:30 a.m. and 1 :30 p.m., respectively. For 2013, these Committees will not meet in May and December due to holidays. Additionally, the Eastern Riverside County Programs and Projects Committee meets on the first Monday of each month at 10:30 a.m., except when the first Monday falls on a holiday or in the same week as a Commission meeting. There are times when a committee meeting may be cancelled due to lack of substantive agenda items. When this occurs, the Commissioners will be notified and items are forwarded directly to the Commission for final action. Attachment: Proposed 2013 Commission/Committee Meetings Schedule Agenda Item 7 A 1 • • RIVERSIDE COUNTY TRANSPORTATION COMMISSION 2013 MEETING SCHEDULE Meeting Date Commission Location Executive Location (Wednesday) Committee January 9 9:30a.m. Board Room 9:00a.m. RCTC Conf Rm A January 31 -February 1 1:00 p.m. Embassy Suites (Thursday) N/A N/A Meeting I Workshop 8:30 a.m; (Friday) La Quinta February 13 9:30a.m. Board Room 9:00a.m. RCTC Conf Rm A March 13 9:30a.m. Board Room 9:00a.m. RCTC Conf Rm A April 10 9:30a.m. Board Room 9:00a.m. RCTC Conf Rm A May 8 9:30a.m. Board Room 9:00a.m. RCTC Conf Rm A June 12 9:30a.m. Board Room 9:00a.m. RCTC Conf Rm A July 10 9:30a.m. Board Room 9:00a.m. RCTC Conf Rm A August 14 9:30a.m. Board Room 9:00a.m. RCTC Conf Rm A September 11 9:30a.m. Board Room 9:00a.m. RCTC Conf Rm A October 9 9:30a.m. Board Room 9:00a.m. RCTC Conf Rm A November 13 9:30a.m. Board Room 9:00a.m. RCTC Conf Rm A December 11 9:30a.m. Board Room 9:00a.m. RCTC Conf Rm A 2 2013 RCTC Meeting Schedule -V1 The Commission and the Executive Committee meetings are held on the second Wednesday of each month. Budget and Western Riverside Meeting Date (Monday) Implementation County Programs and Location Committee Projects Committee February 25 9:30a.m. 1:30 p.m. Board Room March 25 9:30a.m. 1:30 p.m. Board Room April 22 9:30a.m. 1:30 p.m. Board Room June 24 9:30a.m. 1:30 p.m. Board Room July 22 9:30a.m. 1:30 p.m. Board Room August 26 9:30a.m. 1:30 p.m. Board Room September 23 9:30a.m. 1:30 p.m. Board Room October 28 9:30a.m. 1:30 p.m. Board Room November 25 9:30a.m. 1:30 p.m. Board Room I The meetings of the Budget and Implementation Committee and the Western Riverside County Programs and Projects 1 Committee are held on the fourth Monday of each month, except on holid(lys. --------··-I Meeting Date (Monday) Eastern Riverside County Location Programs and Projects Committee March 4 10:30 a.m. April 1 10:30 a.m. CVAG Office June 3 10:30 a.m. 73-71 0 Fred Waring Drive, July 1 10:30 a.m. Suite 119 November 4 10:30 a.m. Palm Desert, CA 92260 December 2 10:30 a.m. The meetings of the Eastern Riverside County Programs and Projects Committee are held on the first Monday of the month, except when the first Monday falls on a holiday or in the same week as a Commission meeting. 3 2013 RCTC Meeting Schedule-V1 • • • • • • -Meeting Date {Monday) Technical Advisory Committee Location February 4 10:00 a.m. Riverside -RCTC Conf Rm A March 18 10:00 a.m. Beaumont -City Hall May 20 10:00 a.m. Riverside -RCTC Conf Rm A July 15 10:00 a.m. Beaumont -City Hall September 1 6 10:00 a.m. Riverside -RCTC Conf Rm A November 18 10:00 a.m. Beaumont -City Hall The meetings of the Technical Advisory Committee are held on the third Monday of every other month, except for holidays. If the meeting falls on a holiday, the meeting is moved to the second Monday. Riverside -Commission Office, County Administrative Center, Beaumont -City Hall, Conference Room 2, 4080 Lemon Street, 3'd Floor, Riverside, CA 550 East Sixth Street, Beaumont, CA 4 2013 RCTC Meeting Schedule -V1 • • • RIVERSIDE COUNTY TRANSPORTATION COMMISSION DATE: December 1 2, 201 2 TO: Riverside County Transportation Commission FROM: Audit Ad Hoc Committee Theresia Trevino, Chief Financial Officer THROUGH: Anne Mayer, Executive Director SUBJECT: Fiscal Year 2011/12 Commission Audit Results AUDIT AD HOC COMMITTEE AND STAFF RECOMMENDATION: This item is for the Commission to receive and file the FY 2011/12: 1 ) 2) 3) 4) 5) 6) 7) 8) 9) Comprehensive Annual Financial Report (CAFR); Local Transportation Fund (L TF) Financial and Compliance Report; State Transit Assistance (STA) Fund Financial and Compliance Report; Proposition 1 B Rehabilitation and Security Project Accounts Financial and Compliance Report; Compliance Report for Single Audit; Commercial Paper Compliance Report; Auditor Required Communications Report; Agreed-Upon Procedures Report related to the Appropriations Limit Calculation; Agreed-Upon Procedures Report related to the Commuter Assistance Program incentives; and 1 0) Management certifications. BACKGROUND INFORMATION: In March 2008, McGiadrey LLP (McGiadrey) was selected to perform the annual audit of the Commission's basic financial statements included in the CAFR, L TF, STA, and federal awards. Additionally, it was requested to perform agreed-upon procedures related to the annual Appropriations Limit Calculation and the Commuter Assistance Program (CAP) incentives and to report on compliance with commercial paper debt covenants. As a result of the receipt of Proposition 1 B funds for commuter rail rehabilitation and security projects, a separate audit is required. The scope of work for McGiadrey was subsequently expanded to include the Proposition 1 B Rehabilitation and Security. Projects audit. The audits, agreed-upon procedures, and compliance procedures for the fiscal year ended June 30, 2012, have been completed, and McGiadrey has issued all reports . 5 Agenda Item 78 The Commission's CAFR consists of three sections: introductory, financial, and statistical. While the introductory and statistical sections were not audited by McGiadrey, the basic financial statements included in the financial section were audited by McGiadrey. The Commission received an unqualified opinion on its basic financial statements from McGiadrey, which is the highest form of assurance. Limited procedures were performed related to the required supplementary information, including Management's Discussion and Analysis; such information was not audited. The other supplementary information was subject to the auditing procedures applied in the audit of the basic financial statements, and in the opinion of the auditors, it is fairly stated in relation to the basic financial statements. The basic financial statements include government-wide financial statements, fund financial statements, and notes to the financial statements. In 2012, as disclosed in Notes 1 and 7, the Commission implemented Governmental Accounting Standards Board (GASB) Statements No. 63, Financial Reporting of Deferred Outflows of Resources, Deferred Inflows of Resources, and Net Position, and No. 65, Items Previously Reported as Assets and Liabilities, respectively. As a result of implementing GASB Statement No. 63, the statement of financial position (formerly the statement of net assets) reports a separate section for deferred outflows of resources, which consists of one item-accumulated decrease in fair value of derivatives. The implementation of GASB Statement No. 65 resulted in the write off, as of June 30, 2011, of unamortized issuance costs of $2,053,676 related to the issuance of long-term debt. Accordingly, beginning net position was restated. Management's Discussion and Analysis provides a narrative overview and analysis of the Commission's financial activities for the fiscal year. Financial highlights include net position of approximately $684 million at June 30, 2012, representing an increase of approximately $50 million from the prior year, and governmental funds fund balances of approximately $576 million at June 30, 2012, representing an increase of approximately $14 million from the prior year. The audit reports related to the separately issued financial statements of the L TF, ST A, and Proposition 1 8 Rehabilitation and Security Projects also reflect unqualified opinions fror.n McGiadrey. These financial statements are required to be issued separately under the Transportation Development Act (TDA), including the provisions for Proposition 18 Rehabilitation and Security Projects; however, the L TF and STA financial position and operations are also included in the fund financial statements in the CAFR. The Proposition 18 Rehabilitation and Security Projects Accounts financial position and operations are part of the General Fund and Measure A Western County Commuter Rail accounts. As noted in the auditor's opinion for the Proposition 18 financial statements, the June 30, 2011 financial statements were restated to correct for the omission of $1 ,490 ,4 76 of revenue and receivables. While these amounts were properly recorded in the Commission's • • accounting records as of June 30, 2011, the amounts were erroneously omitted • 6 Agenda Item 78 • from the Proposition 1 B Rehabilitation and Security Projects Accounts presented in those financial statements. These reports noted no matters considered to be a material weakness in internal control and no instances of noncompliance. • • The Compliance Report, often referred to as the Single Audit Report, includes the reports on compliance and internal control over financial reporting and over federal awards. These reports noted no matters considered to be material weaknesses in internal control and no instances of noncompliance. As a result of the establishment of the commercial paper program in March 2005, the bank reimbursement agreement requires a report from the auditor regarding compliance with certain covenants. The report issued by McGiadrey indicated that nothing came to the auditor's attention that caused the auditors to believe that the Commission failed to comply with these covenants. A management letter usually includes recommendations for improvements and operational efficiencies related to internal control and other matters noted during the audit. Similar to prior years, McGiadrey did not have any recommendations or comments on other matters; therefore, it did not issue a management letter. The Appropriations Limit Calculation and CAP reports are based on specific procedures agreed to by the Commission and other agencies. For the Appropriations Limit Calculation and CAP, the auditors noted no exceptions or findings related to the procedures performed. As required by AICPA Auditing Standards Board Statement of Audit No. 114, The Auditor's Communication With Those Charged With Governance, the Commission's auditor is required to make certain annual communications to the Commission's audit committee, or its equivalent, regarding the audit of the Commission's financial statements prior to the completion of the audit. The annual audit for FY 2011/12 conducted by McGiadrey was completed in November 2012. The report to the Audit Ad Hoc Committee from the auditor contains the required communications about the audit. Representatives from McGiadrey will review this information with the Audit Ad Hoc Committee as part of the required communications. As part of the development of the Commission's Accountability Program, the directors have completed certifications relating to financial reporting and operational disclosures. Attachments: Posted on the Commission Website 1) 2012 Comprehensive Annual Financial Report 2) 2012 Local Transportation Fund Financial and Compliance Report 3) 2012 State Transit Assistance Fund Financial and Compliance Report 7 Agenda Item 78 4) 2012 Proposition 1 B Rehabilitation and Security Projects Account Financial • and Compliance Report; 5) 2012 Compliance Report 6) 2012 Commercial Paper Compliance Report 7) 2012 Report to the Audit Ad Hoc Committee 8) 2012 Agreed-Upon Procedures Report on Appropriations Limit Calculation 9) 2012 Agreed-Upon Procedures Report on Commuter Assistance Program Incentives 1 0) 2012 Executive Director and Chief Financial Officer Certification 11) 2012 Directors Certification 8 Agenda Item 78 • • Riverside County Transportation Commission Riverside County, California Comprehensive Annual Financial Report Fiscal Year Ended June 30, 2012 Riverside Coo Transportation amission Riverside County. Transportation Commission Riverside County, California Comprehensive Annual Financial Report Fiscal Year Ended June 30, 2012 Submitted By: Theresia Trevino, Chief Financial Officer Michele Cisneros, Accounting and Human Resources Manager Contents Introductory Section Letter of Transmittal i Organizational Chart xii List of Principal Officials xiii Certificate of Achievement xiv Financial Section Independent Auditor's Report Management's Discussion and Analysis Basic Financial Statements Government -wide Financial Statements Statement of Net Position Statement of Activities Fund Financial Statements 16 17 Balance Sheet —Governmental Funds 18 Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Position 19 Statement of Revenues, Expenditures and Changes in Fund Balances —Governmental Funds 20 Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to the Statement of Activities 21 Notes to Financial Statements 22 Required Supplementary Information Budgetary Comparison Schedules General Fund 47 Major Special Revenue Funds 48 Schedule of Funding Progress for Postretirement Health Care 49 Notes to Required Supplementary Information 50 Other Supplementary Information Nonmajor Governmental Funds 53 Combining Balance Sheet 54 Combining Statement of Revenues, Expenditures and Changes in Fund Balances 55 Schedule of Revenues, Expenditures and Changes in Fund Balances —Budget and Actual: Nonmajor Special Revenue Funds 56 Capital Projects and Debt Service Funds 57 Schedule of Expenditures for Local Streets and Roads by Geographic Area —All Special Revenue Funds 58 Schedule of Expenditures for Transit and Specialized Transportation by Geographic Area and Source —All Special Revenue Funds 59 Contents, Continued Statistical Section Statistical Section Overview 61 Net Position by Component 63 Changes in Net Position 64 Fund Balances of Governmental Funds 66 Changes in Fund Balances of Governmental Funds 67 Sources of County of Riverside Taxable Sales by Business Type 68 Direct and Overlapping Sales Tax Rates 69 Principal Taxable Sales Generation by City 70 Measure A Sales Tax Revenues by Program and Geographic Area 71 Measure A Sales Tax by Economic Category 72 Measure A Revenues and Pledged Revenue Coverage 73 Ratios of Outstanding Debt by Type 74 Computation of Legal Debt Margin 75 Demographic and Economic Statistics for the County of Riverside 76 Employment Statistics by Industry for the County of Riverside 77 Full-time Equivalent Employees by Function/Program 78 Operating Indicators 79 Capital Asset Statistics by Program 80 Introductory Section This page intentionally left blank. November 5, 2012 To the Riverside County Transportation Commission Commissioners and Citizens of the County of Riverside: Letter of Transmittal State law requires that the Riverside County Transportation Commission (Commission or RCTC) publish within six months of the close of each fiscal year a complete set of financial statements presented in conformity with accounting principles generally accepted in the United States (GAAP) and audited in accordance with generally accepted auditing standards by independent certified public accountants. Pursuant to that requirement, we hereby issue the Comprehensive Annual Financial Report (CAFR) of the Commission for the fiscal year ended June 30, 2012. Management assumes full responsibility for the completeness and reliability of all of the information presented in this report, based upon the Commission's comprehensive framework of internal controls established for this purpose. Because the cost of internal control should not exceed anticipated benefits, the objective is to provide reasonable, rather than absolute, assurance that the financial statements are free of any material misstatements. McGladrey & Pullen, LLP, has issued an unqualified opinion on the Commission's financial statements for the year ended June 30, 2012. The independent auditor's report is located at the front of the financial section of this report. Management's Discussion and Analysis (MD&A) immediately follows the independent auditor's report and provides a narrative introduction, overview, and analysis of the basic financial statements. MD&A complement this letter of transmittal and should be read in conjunction with it. Profile of the Government The Commission was established by state law in 1977 to oversee the funding and coordination of all public transportation services within the county of Riverside (County). The Commission's mission is to assume a leadership role in improving mobility in Riverside County and to maximize the cost effectiveness of transportation dollars in the County. The governing body is the Board of Commissioners (Board), which consists of all five members of the County Board of Supervisors, one elected official from each of the County's 28 cities, and one non -voting member appointed by the Governor. The Commission is responsible for setting policies, establishing priorities, and coordinating activities among the County's various transportation operators and agencies. The Commission also programs and/or reviews the allocation of federal, state, and local funds for highway, transit, rail, non -motorized travel (bicycle and pedestrian), and other transportation activities. The Commission also serves as the tax authority and implementation agency for the voter -approved Measure A Transportation Improvement Program, which imposes a half -cent sales tax to fund transportation improvements. Originally approved in 1988, Riverside County's voters in 2002 approved a 30-year extension of Measure A commencing July 1, 2009 through June 30, 2039 (2009 Measure A). The Commission is also legally responsible for allocating Transportation Development Act (TDA) funds, the major source of funds for transit in the County. The TDA provides two major sources of funding: Local Transportation Fund (LTF), which is derived from a one -quarter cent state sales tax, and State Transit Assistance, which is derived from the statewide sales tax on gasoline and diesel fuel. i Additionally, the Commission provides motorist aid services designed to expedite traffic flow. These services include the Service Authority for Freeway Emergencies (SAFE), a program that provides call box service for motorists, and the Freeway Service Patrol (FSP), a roving tow truck service to assist motorists with disabled vehicles on the main highways of the County during peak rush hour traffic periods. The motorist aid program also includes the operation of the Inland Empire 511 (IE511) system which provides comprehensive real time traveler information for freeways, bus and rail transit, and rideshare services. All services are provided at no charge to motorists and are funded through a $1 surcharge on vehicle registrations. The Commission is financially accountable for SAFE, a legally separate entity that is blended within the Commission's financial statements. Finally, the Commission has been designated as the Congestion Management Agency (CMA) for the County. As the CMA, the Commission coordinates with local jurisdictions in the establishment of congestion mitigation procedures for the County's roadway system. The Commission is required to adopt a budget prior to the beginning of each fiscal year. The annual budget, which includes all funds, serves as the foundation for the Commission's financial planning and control regarding staffing, operations, and capital plans. The budget is prepared by fund (financial responsibility unit), department, and function. Management has the discretion to transfer budgeted amounts within the financial responsibility unit according to function. During the fiscal year, all budget amendments requiring Board approval are presented to the Board for consideration and adoption. Local Economy Riverside County has a number of competitive advantages 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. Prior to the national recession, 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 a more diversified employment and commercial base and an increasing share of the regional economy. During the nationwide recession, the County experienced high unemployment; reduced personal income, taxable sales, and residential building permits; a decrease in 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 was amplified in the Inland Empire (i.e., Riverside and San Bernardino counties) due to its relatively greater recent growth and the relatively lower average income levels when compared to coastal areas. These factors resulted in fluctuating Measure A and LTF sales tax revenues and Transportation Uniform Mitigation Fees (TUMF). Recovery from the nationwide recession in the local Inland Empire economy has lagged the nation and the rest of California. Sales tax revenues have rebounded from the recent economic downturn's low point in 2010, with Measure A revenues growing 7.8% in FY 2010/11 and 9.4% in FY 2011/12. The Commission's outlook for FY 2012/13 continues to be cautiously optimistic, due to concerns regarding other economic indicators. Should Measure A and LTF sales tax revenues continue to fluctuate 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. Regardless of the future economic conditions, the Commission faces formidable ongoing challenges in terms of providing needed infrastructure enhancements to support a population and an economy that has outgrown the capacity of its existing infrastructure. Fortunately, the foundation of the regional economy continues to retain many of the fundamental positive attributes that fueled its earlier growth, including lower priced real estate with proximity to coastal communities, a large pool of skilled workers, and increasing wealth and education levels. ii Long-term Financial Planning Proactive financial planning is a critical element for the success of the Commission as it builds for the future. Continually reviewing revenues and projecting expenditures ensures that the Commission's expectations are realistic and goals are achievable. Scarce resources, especially at the state and federal level, can be directed to projects of regional significance or, with additional funding, project priorities can be expanded to address unfunded project requirements or developing needs. At the state level, there continues to be concerns regarding California's overall budget situation. Governor Brown and the Legislature are faced with an ongoing, structural imbalance in the state budget which has impacted the state's ability to sell infrastructure bonds approved by the voters in 2006. The state budget uncertainty has also impacted cash flow for the State Transportation Improvement Program (STIP) which is also relied upon for funding several major projects. The news on the federal level is somewhat less predictable. After years of delay, in June 2012, Congress finally approved a new comprehensive transportation bill known as Moving Ahead for Progress in the 21st Century (MAP- 21); however, the bill spans only two years. This will lead to discussion of yet another long-term bill in the next Congressional session. In spite of the short duration of MAP-21, it does provide important improvements that could lead to a more streamlined approval process. Another provision of the bill expands the Transportation Infrastructure Finance and Innovation Act (TIFIA). The Commission is utilizing TIFIA funding for its upcoming project on State Route (SR) 91 in Corona and could seek additional financing from the program for other projects in the future. In the meantime, the federal government will continue to be a source of highway funding through the Surface Transportation Program (STP) and the Congestion Mitigation Air Quality program since MAP-21 continues these programs at roughly the same funding level. Federal dollars are also needed by the Commission's transit partners for capital programs, and the Commission will utilize $75 million in Federal Transit Administration (FTA) Small Starts funding to pay for its Metrolink expansion project to Perris. All of these programs depend on the authorization of federal funding by Congress and the President. The widening of SR-91 is part of a multi -year Western Riverside County Delivery Plan (Delivery Plan) that focuses on investing more than $2 billion in improvements along a number of major freeways during the first ten years of the 2009 Measure A program. The Delivery Plan was adopted by the Commission in December 2006 and was updated in January 2010 and February 2012. In order to make the needed investments, the plan relies on Measure A, STIP, and Proposition 1 B dollars as well as the development of tolled express lanes on 1-15 and the extension of the 91 Express Lanes into Riverside County. While the Delivery Plan is ambitious, it is only one portion of a much larger program of projects and services the Commission will provide throughout the County. Additional responsibilities and challenges include working cooperatively with the Coachella Valley Association of Governments (CVAG) to fund projects, continued oversight and funding of transit services throughout the County, and a 24-mile expansion of Metrolink service to Perris. The success of all of these efforts will require a combination of funding sources that will depend on the State's commitment to funding infrastructure and major investments from the federal government via the approval of a federal transportation bill. However, the primary —and most predictable —source of funding for the Commission will continue to be the Measure A half -cent sales tax program approved by Riverside County voters. iii Major Initiatives Capital Project Delivery and Implementation The Capital Project Development and Delivery Department is responsible for major highway and rail capital projects from initial environmental study through preliminary engineering, final design, right of way acquisition, and construction. This past year was one of significant accomplishments for the Commission as progress was made on a number of major projects. Difficult funding decisions were made on how to spend millions of dollars on transportation projects to expand freeways, improve mobility on streets and roads, and improve rail passenger facilities. Highways. The Commission is currently working on the few remaining projects yet to be completed from the 1989 Measure A program. For example, construction on the 60/215 East Junction High Occupancy Vehicle (HOV) connector project began in Summer 2011. This project will provide two HOV bridges that will connect the SR-60 HOV lanes constructed by the Commission in Moreno Valley to the HOV lanes that were constructed on the 60/91/215 interchange and corridor improvement project. The 60/215 East Junction project estimated completion date is Spring 2014. Another 60/215 project is the segment along 1-215 from Blaine Street to Martin Luther King Boulevard; construction is expected to begin and be completed in 2013. This widening project also includes STP funding. The SR-91 HOV project in Riverside from Adams Street to the 60/91/215 interchange was approved for Proposition 1 B Corridor Mobility Improvement Account (CMIA) funding of $157.2 million related to the construction phase. The Commission and California Department of Transportation (Caltrans) District 8 partnered on the design and right of way activities, and construction began in Spring 2012 with an estimated completion date of Summer 2014. Two other 1989 Measure A projects along SR-74 are the 74/215 interchange and the SR-74 curve widening. The 74/215 project in Perris, which was completed in Spring 2012, realigned and widened the on -ramps from SR-74 to I- 215 and reconstructed a wider Redlands Avenue overcrossing. The project was funded with TUMF zonal funding and American Recovery and Reinvestment Act funding. With right of way acquisition underway, construction for the SR- 74 curve widening near Hemet should begin in early 2013. The 1-215 corridor from Murrieta to Perris will prove to be an important corridor for the Commission in the coming years, and three projects make up the 1-215 widening projects included in the Delivery Plan. The first is the 1-215 mixed flow lanes from 1-15 to Scott Road. Construction of this south segment, which added a third mixed flow lane in each direction of the existing median of 1-215, was recently completed in September 2012. The project was funded with STIP and CMIA funds. The second 1-215 widening project is the 1-215 mixed flow lanes from Scott Road to iv Nuevo Road. This central segment will also add a third mixed flow lane in each direction of 1-215 resulting in three continuous lanes from the 1-15 interchange to the SR-60 interchange. Construction is anticipated to start in early 2013. The project funding includes STIP and CMIA. The final project is the 1-215 Southbound Connector Project which will widen the 1-215 to 1-15 southbound connector to three lanes. The preliminary engineering and environmental clearance phase began in Fall 2010, and construction is expected to begin in Summer 2015. In February 2012 the Commission amended the Delivery Plan to include a truck climbing lanes safety project on SR- 60 in the Badlands area in place of a similar nearby project on 1-10. In partnership with Caltrans, the Commission is the project sponsor and Caltrans is the lead agency for preliminary engineering using federal funds. With a total project cost estimated at $122 million, construction of the project is expected to be completed by 2018. Commuter Rail. Since 1993 the Commission has held title to and managed the 38-mile San Jacinto Branch Line and several adjacent properties in anticipation of offering Metrolink commuter rail service to a wider area of the County, initially including Moreno Valley and Perris and ultimately to Hemet/San Jacinto. The first major expansion for commuter rail along this corridor is known as the Perris Valley Liner In July 2011 the Commission certified the Environmental Impact Report for the Perris Valley Line and approved the project. Federal environmental approval was obtained in May 2012. In September 2007 a Small Starts application was submitted to the FTA requesting authorization to enter into project development for the Perris Valley Line rail extension project. In December 2007 the Commission received approval from the FTA with a project rating of medium -high. A total of $75 million in FTA Section 5309 Small Starts funding has been appropriated by Congress for this project. An additional $53 million in STIP funds is also identified for the project. The Commission anticipates that the project construction grant agreement will be in place by December 2012, and construction will begin in January 2013. New commuter rail service on the Perris Valley Line is anticipated to commence in late 2015. With the continued growth of patronage, commuter rail's challenges for the future include the implementation of Positive Train Control to ensure safety, locomotive rehabilitation and emissions improvements, and additional train storage and maintenance facilities. Toll Program Moves Forward The State Route 91 Corridor Improvement Project (91 Project) through Corona continues to make progress despite a challenging economy and state and federal project funding environment. The 91 Project is planned to include two tolled express lanes in each direction in the median of SR-91. The extension of these lanes will provide more choices for Riverside County drivers; improve congestion on the general purpose lanes; and ensure a speedy, uncongested trip for drivers willing to pay a toll. The 91 Project also includes numerous non -toll lane improvements including an additional general purpose lane in each direction on SR-91 and substantive interchange improvements as detailed in the 2009 Measure A. In October 2011 the Commission applied for federal Transportation Investment Generating Economic Recovery (TIGER) III grant funding to pay the estimated subsidy payment for a future federal TIFIA loan. This effort proved to be successful, and the Commission was awarded a $20 million grant that will translate into a portion of the total loan needed by the Commission for the project. In December 2011 the Commission submitted a $444 million loan request through the U.S. Department of Transportation's (USDOT) TIFIA loan program Letter of Interest process. This submittal marked the fourth time the Commission had requested this loan and represented significant, ongoing effort from Commission Board members; local, state, and federal elected officials; staff; and consultants. In April 2012 the Commission was invited to submit an application for the USDOT TIFIA loan program. This invitation was the long- awaited, critical step to obtain the last portion of funding needed to deliver the $1.3 billion 91 Project. With this invitation, the Commission will proceed to work with the USDOT and Federal Highway Administration to submit a formal application, negotiate loan terms, obtain formal loan approval, and work toward funding the TIFIA loan by June 2013. v In addition to obtaining full project funding for the 91 Project, all phases of project development have moved forward. Environmental studies and preliminary engineering are proceeding as planned, and this work is expected to be completed in November 2012. The Commission executed several key interagency agreements that define the project's design and construction and future operation and maintenance. The Commission advanced the procurement planning for a design -build contractor, and a design -build contract award is anticipated in Spring 2013. The project's overall finance plan has been developed by a finance team, which includes Goldman Sachs and Bank of America Merrill Lynch serving as co -managing underwriters for a future toll revenue bond issue and a sales tax revenue bond issue. The Commission adopted a toll policy in June 2012 for the RCTC 91 Express Lanes and approved an investment -grade traffic and revenue study in connection with the financing strategy. Lastly, purchasing property needed for the project continues with efforts focused on open-market/willing seller and hardship transactions. The Commission previously initiated a level 2 toll feasibility study for the Interstate 15 Corridor Improvement Project (1-15 CIP) in light of negative developments in the general economy, socio-economic factors, capital markets, Measure A sales tax revenues, and other factors. This study updated previous feasibility results using current factors, exploring project phasing options to implement the project over time, reviewing alternative project scopes of work, and similar efforts to ensure that a plan of improvements to 1-15 can be maintained and is financially feasible. The I- 15 CIP is planned to include two tolled express lanes in each direction in the median of 1-15. The first phase of these lanes will likely extend from Cajalco Road in the south to SR-60 to the north. The lanes will have the same benefits mentioned previously for the 91 Project. Several ad hoc committee meetings to advance this work were conducted during FY 2011/12, and a final consensus is expected to be reached for a financially feasible first phase of the 1-15 CIP in FY 2012/13. This project's environmental studies and preliminary engineering work continue to progress and are scheduled for completion in 2015. TUMF Plays an Important Role In the Coachella Valley, a TUMF program was established shortly after the passage of the 1989 Measure A. The program requires developers to pay a fee on new development to fund arterial improvements. Cities are required to participate in the program or forfeit Measure A local dollars to the CVAG, which oversees the arterial program and has been successful in funding a number of important arterial and freeway interchange projects. With the passage of the 2009 Measure A, a TUMF program with participation requirements similar to that in the Coachella Valley is now in place in western Riverside County (Western County) and is administered by the Western Riverside Council of Governments (WRCOG). TUMF funds received by the Commission are split evenly between new corridors, including the Mid County Parkway, and regional arterials, including local projects and the SR-79 realignment project. To date, six projects have been completed, three projects are under construction, and three projects will begin construction in 2013. Rail Development, Operations and Support The County's participation in commuter rail service began with the 1989 Measure A. Riverside County voters were the first to specify commuter rail service in Southern Califomia as a priority transportation improvement project. The subsequent passage of similar measures in adjoining counties and the passage of statewide rail infrastructure bonds in 1990 provided enough capital funding to build the initial system. As one of five funding partners in the Southem California Regional Rail Authority, which operates the Metrolink commuter rail service, the Commission is engaged in a continual exercise of consensus building with its partners. Now consisting of seven lines, serving origins and destinations in six counties, the system carries an average of 43,000 passengers each weekday. The Commission owns and operates five stations served by the three Metrolink lines operating through the County: vi ➢ Riverside Line (1993): Originates in the Downtown Riverside station and stops at the Pedley station before proceeding through Ontario, Pomona, Industry, and Montebello to Los Angeles Union Station. Ridership approximates 5,100 daily riders. ➢ Inland Empire Orange County (IEOC) Line (1995): Begins in nearby San Bernardino with stops in the Downtown Riverside, La Sierra, North Main Corona, and West Corona stations before entering Orange County with stops in Anaheim Canyon, Orange, Santa Ana, Tustin, Irvine, Laguna Niguel/Mission Viejo, San Juan Capistrano, and Oceanside. When initiated, this service was described as the first suburb -to - suburb commuter rail service in the nation. The IEOC line has experienced a slight increase in patronage with an average daily ridership of 4,000. ➢ 91 Line (2002): Provides another alternative to commute from Riverside to Los Angeles with stops in Riverside, Orange, and Los Angeles counties. Patronage on the line has increased slightly with an average daily ridership of 2,500. The Perris Valley Line project will extend this line to Perris in 2015. The Commission also owns the Perris Transit Center, a multimodal facility currently serving Riverside Transit Agency bus operations and providing park and ride spaces. It will be one of four new Perris Valley Line commuter rail stations. In addition to regular weekday service, the Commission partnered with the Orange County Transportation Authority (OCTA) and San Bernardino Associated Governments (SANBAG) to provide weekend service along the IEOC. With two round trip trains on weekends, the IEOC serves as another link between Orange and Riverside counties and provides an effective transportation alternative for weekend travel. Planning for the Future In terms of future progress, the Commission has given its unanimous support to the Riverside County Integrated Project (RCIP) and its transportation component, the Community and Environmental Transportation Acceptability Process (CETAP). The RCIP was intended to be a model for streamlining the environmental process while providing for the long-term development and economic growth of the County. The County and the Commission worked together in a first -of -its kind endeavor to provide for new transportation options and land use planning to support the economic growth of the County while providing for preservation of open space and protection for endangered species. CETAP addresses the impact of future population and economic growth on the existing transportation system by identifying and establishing new transportation corridors and arterial system improvements. The entire CETAP program was recognized under President Bush's Executive Order for Environmental Streamlining and Stewardship. The Commission's CETAP effort focuses on four new transportation corridors: two located within the County and two that would link Riverside County with the neighboring counties of Orange and San Bemardino. Each of the corridors is progressing on differing schedules with the aforementioned improvements on the 1-215 among the first to be completed. Environmental work is also progressing rapidly for the development of the Mid County Parkway between Perris and San Jacinto. Another large planning effort affecting the Hemet and San Jacinto communities is the realignment of SR-79. This 2009 Measure A project is undergoing early project development funded through the TUMF program and federal earmarks. An environmental document is being prepared in cooperation with local, state, and federal agencies to allow the realignment of SR-79 between Domenigoni Parkway, south of SR-74, and Gilman Springs Road, north of San Jacinto. The project would realign the highway to provide a more direct route within the San Jacinto Valley. vii Motorist Assistance Programs In cooperation with the California Highway Patrol (CHP) and Caltrans, the Commission, in its capacity as the SAFE, assists motorists who experience accidents, mechanical breakdowns, or other unforeseen problems by providing access to cellular call boxes along the County's major highways. The Commission's system includes 600 call boxes serving more than 346 centerline miles of highways. The call box program is funded by an annual $1 surcharge added to vehicle registrations. Each call box is a battery -powered, solar -charged roadside terminal containing a microprocessor and cellular telephone. Spacing between call boxes ranges from one mile in high traffic areas to two miles in remote areas of the County. Call boxes are installed on the three interstates, U.S. Route 95, and the 14 state routes located within the County. The phones are programmed to call a private call answer center, and the call box operator responds to the call by routing emergency calls to the CHP for appropriate services (i.e., ambulance, tow truck, fire, or police unit) or providing a direct connection to routine service through auto clubs or other private tow and service providers. Call box operators answered approximately 5,050 calls during FY 2011/12. In an effort to relieve congestion and reduce pollution, the Commission provides an additional motorist assistance program with the FSP. The FSP program is a special team of 21 tow trucks traveling along portions of SR-60, SR-91, 1-15, and 1-215 within the County during peak, weekday commuter hours to assist drivers when their vehicles break down or experience other mechanical problems. The purpose of the FSP is to clear debris and remove disabled vehicles from the freeway as quickly as possible to help keep freeway traffic moving during rush hour periods. Services provided are free to the motorist and include changing a flat tire, providing one gallon of fuel, taping radiator hoses, or towing the vehicle off the freeway to designated locations where the motorist can make other arrangements for repair. Another effort augments existing FSP service with additional tow trucks in construction areas as another means of construction -related congestion mitigation. The FSP is funded by the Riverside County SAFE and the State. During FY 2011/12, the FSP provided assistance to approximately 42,750 motorists. To further promote mobility, the Commission, in partnership with SANBAG, provides motorists with access to real- time freeway travel information and incident information on Southern California highways through its Inland Empire 511 (IE511) Traveler Information system. 1E511 is available via the telephone by dialing 511 from any land line or cell phone within Riverside or San Bernardino County or online at www.ie511.org. 1E511 is designed to promote mobility by fostering more informed travel decisions to avoid congestion as well as provide more choices for the individual commuter by identifying all travel options available to Riverside and San Bemardino County residents. Inland Empire commuters can access transit, Metrolink, carpooling, vanpooling, carpool lane, and toll road information, as well as detailed park and ride lot information for the entire Southern California region. 1E511 is funded with Riverside County SAFE funds in addition to SANBAG reimbursements. In FY 2011/12, 1E511 serviced approximately 341,700 web visits and 363,000 phone calls. Commuter Assistance Program The Commission's Commuter Assistance Program provides a variety of rideshare services and programs both to employers and commuters. Through voluntary participation, commuters and employers receive a direct benefit from their sales tax dollars, and the entire region benefits from reduced traffic congestion and improved air quality as a result of trip elimination or use of alternative means of transportation. The Commission's continued success in serving commuters and employers within the County resulted in SANBAG's renewal of its contract with the Commission, for the 16th year, to provide an identical commuter assistance program for San Bernardino County residents. At the core of the Commuter Assistance Program are employer partnerships. To support voluntary efforts by local employers in implementing and maintaining rideshare activities at work sites, there are several rideshare services, employee programs, and resources provided to Western Riverside and San Bernardino County employers. Using Job Access Reverse Commute (JARC) funds, the Commission also continued the provision of rideshare services and programs to employers in the Coachella Valley. Employer partners function as an efficient and effective channel for rideshare marketing and programs designed to reach and benefit their employees. The most prominent commuter viii product continues to be the Rideshare Incentives, a short-term incentive that offers $2 per day for each day new ridesharers use an alternate mode of transportation in a three-month period. Long-term ridesharers are recognized and rewarded for their continuing commitment to use alternate modes of transportation to and from work with access to discounts at over 135,000 local and national merchants through RidesharePlus Rewards. In providing commuter benefits to employers and employees, during FY 2011/12, the program attracted 1,262 drive alone commuters to rideshare and participate in the Rideshare Incentives program. RidesharePlus Rewards had 4,848 participants for the same period. In total, the Commuter Assistance program resulted in over 1.5 million one- way trips reduced, 39.5 million miles saved, and approximately 395,400 pounds of emissions reduced in Riverside County. Another component of the Commuter Assistance program is the provision of leased park and ride lots to supplement Caltrans lots and to expand park and ride capacity. Working in partnership with Caltrans, which provides signage and insurance, the Commission leases excess parking from business and civic institutional partners at a reasonable rate. There are over 2,300 park and ride spaces available to Riverside County commuters. Finally, the Commission's program also extends beyond the borders of the Inland Empire. To support coordinated and efficient ridematching throughout a five -county region that includes transportation agencies in Los Angeles, Orange, San Bernardino, and Ventura counties, the Commission operates the Regional Rideshare Database. This application serves as a central depository for all commuter transportation surveys and as the region's primary ridematching application. Specialized Transit The Commission has maintained a long-term commitment to assist in the mobility of those with specialized transit needs. Through its Specialized Transit Program, the Commission has provided millions of dollars to public and nonprofit transit operators to assist in the provision of special transit services to improve the mobility of seniors, persons with disabilities and persons with low incomes. Along with support of traditional dial -a -ride services, the Commission supports innovative programs providing transit assistance in hard -to -serve rural areas or for riders having very special transit needs. Following the Commission's approval and adoption of the Public Transit -Human Services Coordinated Plan (Coordinated Plan) for Riverside County in 2008, the Commission became eligible for federal funding of specialized transit in the County. The 2011 Universal Call for Projects for Specialized Transit (Universal Call) provided funding awards to 21 public and nonprofit agencies using a combination of Measure A funding and new federal funds under the JARC and New Freedom (NF) programs. The 2011 Universal Call included approximately $2.7 million in new federal funding to augment the $4.1 million in Measure A funds committed locally by the Commission for FY 2011/12 and FY 2012/13. During FY 2011/12, the public and nonprofit operators provided approximately 505,650 Measure A/JARC/NF one-way trips in both Western County and Coachella Valley —exceeding the countywide goal for the year by about 4%. The Commission will conduct another cycle of Universal Call for Projects for Specialized Transit in 2013 to cover funding for selected eligible projects in fiscal years 2014 and 2015. • Goods Movement The impact of delays caused by freight trains traveling through Riverside County continues to be one of the area's most pressing transportation concerns. Southern California is the goods movement gateway to the nation because of the area's numerous advantages: deep -water marine ports, highly developed networks of highways and railways, an extensive concentration of warehousing and distribution facilities, as well as a local consumer market. Currently, there are 66 freight trains that pass through Riverside County on a daily basis; that number is projected to increase to 127 by 2035. Long waits at unimproved rail crossings create quality of life issues; productivity decreases, drivers become frustrated, local commerce suffers, and disruptions to public safety and emergency responses occur. ix In October 2008, the Commission approved a goods movement funding strategy for 61 at -grade Alameda Corridor East (ACE) crossings in Riverside County presenting conflicts between rail and highway traffic. Since that time, significant progress has been made in eliminating 15 at -grade crossings. The California Transportation Commission allocated $145.2 million in Proposition 1 B funds under the Trade Corridor Improvements Funds (TCIF) program to grade separate 11 at -grade crossings located in Riverside County and one ground access improvement project at the I-215Nan Buren interchange. A requirement of the TCIF program is that all projects must start construction by December 2013. Since 2008, four at -grade crossings have been constructed, two are under construction, and seven are projected to start construction by December 2013, due in large part to the Proposition 1 B funding. An additional two at -grade crossings have been permanently closed due to roadway reconfiguration. In March 2012, the Commission adopted a Grade Separation Priority Update Study for ACE projects located in Riverside County. That study ranked the remaining 46 at -grade crossings into five priority tiers based on a set of criteria that included safety, congestion, air quality, noise, adjacent grade separations, local community preferences, project readiness, and isolated location. Eighteen of the 46 at -grade crossings were identified as priority projects. Information from the Grade Separation Priority Update study was used to develop a 2012 funding strategy for at -grade crossings which is expected to be approved by the Commission in late 2012. The cost of constructing grade separations at the 18 locations is currently estimated at $955.3 million, yet only $23.2 million is currently committed through federal, state, and local funding sources. Although MAP-21 created a national freight network and a national freight strategic plan, it did not create a funding mechanism specifically for goods movement projects. The Commission will advocate that grade separations in Riverside County be included in the national freight network and strategic plan. When MAP-21 expires in September 2014, the Commission will continue to work with national coalitions and members of Congress to create a dedicated freight funding program that includes grade separations as eligible projects. The Commission's goal is to support a freight funding program that fills most of the funding gap identified in the 2012 funding strategy, as it represents the federal government's true responsibility for interstate commerce and its impacts. Awards and Acknowledgements The Government Finance Officers Association of the United States and Canada (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to the Commission for its CAFR for the fiscal year ended June 30, 2011. This was the 19th straight year the Commission has achieved this prestigious award. In order to be awarded a Certificate of Achievement, a government must publish an easily readable and efficiently organized CAFR. This report must satisfy both GAAP and applicable legal requirements. A Certificate of Achievement is valid for a period of one year only. We believe our current CAFR continues to meet the Certificate of Achievement Program's requirements, and we are submitting it to the GFOA to determine its eligibility for another certificate. The CAFR each year is a collaborative effort by Commission staff and its independent auditors. The undersigned are grateful to all staff for their willingness to expend the effort necessary to ensure the financial information contained herein is informative and completed within established deadlines. Special thanks must be extended to the Finance staff, Commission's auditors, and the program management and staff for the time, effort, and commitment so vital for the final completion of the CAFR. x In closing, without the leadership and the support of the Board, preparation of this report would not have been possible. Its prudent management must be credited for the strength of the Commission's fiscal condition, and its vision ensures that the Riverside County Transportation Commission will be on the move planning for and building a better future for Riverside County residents and commuters. Very truly yours, ANNE MAYER Executive Director THERESIA TREVINO Chief Financial Officer xi Chief Financial Officer: J sor; Accounting Technician (2) Accounting Assistant Accounting Clerk FY 2011/12 Organization Chart Legal Counsel Board of Commissioners Executive Director Deputy Executive Director Mu timodal Services; Director StaitAnalyst aff Analysts.:, ce & Baard services I Senior Administrative Assistant Project Developittent Director Senior Staff Analyst Staff Analyst, • Administrative Assistant (3) Senior Office Assistant Senior Staff Analyst Staff Analyst - Toll Programs Director XII Name and Position Riverside County Transportation Commission List of Principal Officials As of June 30, 2012 Board of Commissioners Title Agency John J. Benoit Karen Spiegel Marion Ashley Bob Botts Roger Berg Joseph DeConinck Ella Zanowic Mary Craton Greg Pettis Steven Hernandez Scott Matas Adam Rush Larry Smith Douglas Hanson Glenn Miller Frank Johnston Terry Henderson Bob Magee Darcy Kuenzi Marcelo Co Rick Gibbs Berwin Hanna Jan Harnik Ginny Foat Daryl Busch Gordon Moller Steve Adams Andrew Kotyuk Ron Roberts Ben Benoit Bob Buster John F. Tavaglione Jeff Stone Basem Muallem Chair (Commission) Vice Chair (Commission) 2nd Vice Chair (Commission) Member Member Member Vice Chair (Budget & Implementation Committee) Member Member Member Vice Chair (Eastern Riverside County Programs and Projects Committee) Chair (Western Riverside County Programs and Projects Committee) Member Member Member Member Chair (Eastern Riverside County Programs and Projects Committee) Member Member Member Chair (Budget & Implementation Committee) Member Member Member Member Member Member Vice Chair (Western Riverside County Programs and Projects Committee) Member Member Member Member Member Governor's Appointee Management Staff Anne Mayer, Executive Director John Standiford, Deputy Executive Director Cathy Bechtel, Project Development Director Michael Blomquist, Toll Programs Director Marlin Feenstra, Project Delivery Director Theresia Trevino, Chief Financial Officer Robert Yates, Multimodal Services Director County of Riverside, District 4 City of Corona County of Riverside, District 5 City of Banning City of Beaumont City of Blythe City of Calimesa City of Canyon Lake City of Cathedral City City of Coachella City of Desert Hot Springs City of Eastvale City of Hemet City of Indian Wells City of Indio City of Jurupa Valley City of La Quinta City of Lake Elsinore City of Menifee City of Moreno Valley City of Murrieta City of Norco City of Palm Desert City of Palm Springs City of Perris City of Rancho Mirage City of Riverside City of San Jacinto City of Temecula City of Wildomar County of Riverside, District 1 County of Riverside, District 2 County of Riverside, District 3 Caltrans, District 8 Certificate of Achievement for Excellence in Financial Reporting Prestmted to Riverside County Transportation Commi si n California For its Comprehensive Annual Fiitarmial Report for the Fiscal Year Ended June 30, 2011 A Certificate of Achievement for Exec:Motion in Financial Rerxietin pragentail by the Claverninent fittoot* Offiterf; AssociatioQ of the United States and Cambia to, govenatoivit urtat3.47t poblie employee mirtmeor s3stetria whose rompthensive emnueE fingtnrial rtptittl (CAFR:s) achieve the higheat gandarck: in goNtrirrwiat aixountizg and financial reporting. ), „ SIATEiNkt k.4 WON DliPAPATiSs SZAL, President xiv Financial Section This page intentionally left blank. McLladrey LIP McGladrey Independent Auditor's Report Board of Commissioners Riverside County Transportation Commission Riverside, CA We have audited the accompanying financial statements of the governmental activities, each major fund and the aggregate remaining fund information of the Riverside County Transportation Commission (the Commission) as of and for the year ended June 30, 2012, which collectively comprise the Commission's basic financial statements as listed in the table of contents. These financial statements are the responsibility of the Commission's management. Our responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinions. In our opinion, the financial statements referred to previously present fairly, in all material respects, the respective financial position of the governmental activities, each major fund and the aggregate remaining fund information of the Commission as of June 30, 2012, and the respective changes in financial position for the year then ended, in conformity with accounting principles generally accepted in the United States of America. Accounting principles generally accepted in the United States of America require that the management's discussion and analysis, budgetary comparison and other postemployment benefits information, as listed in the table of contents, be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management's responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. Member or the FSM International n n e acc©unel ns tax and consulting firms. Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the Commission's basic financial statements. The combining and individual nonmajor fund financial statements, and the introductory and statistical section, listed in the table of contents as supplementary information, are presented for purposes of additional analysis and are not a required part of the basic financial statements. Such information is the responsibility of management and was derived from, and relates directly to, the underlying accounting and other records used to prepare the basic financial statements. The combining and individual nonmajor fund financial statements have been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements, or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the combining and individual nonmajor fund financial statements are fairly stated in all material respects in relation to the basic financial statements as a whole. The introductory and statistical section has not been subjected to the auditing procedures applied in the audit of the basic financial statements, and accordingly, we do not express an opinion or provide any assurance on it. Irvine, CA November 5, 2012 Riverside County Transportation Commission Management's Discussion and Analysis Year Ended June 30, 2012 As management of the Riverside County Transportation Commission (Commission), we offer readers of the Commission's financial statements this narrative overview and analysis of the Commission's financial activities for the fiscal year ended June 30, 2012. We encourage readers to consider the information on financial performance presented here in conjunction with the transmittal letter on pages i-xi and the Commission's financial statements which begin on page 16. Financial Highlights • Total net position of the Commission was $683,532,081 and consisted of net investment in capital assets of $327,277,502; restricted net position of $572,183,941; and unrestricted net position (deficit) of ($215,929,362). • The unrestricted net position (deficit) results primarily from the recording of the debt issued for Measure A highway, local street and road, and regional arterial projects. As title to substantially most of those assets vests with the State of Califomia (State) Department of Transportation (Caltrans) or local jurisdictions, there is no asset corresponding to the liability. Accordingly, the Commission does not have sufficient current resources on hand to cover current and long-term liabilities; however, future Measure A sales taxes are pledged to cover Measure A debt service payments when made. • Net position increased by $49,721,735 during fiscal 2012. General revenues consisting primarily of sales taxes and investment earnings are the major funding source for the governmental activities. The change in net position was higher than the prior year due to increased Measure A sales taxes and program revenues. • Total capital assets, net of accumulated depreciation, were $424,581,073 at June 30, 2012, representing an increase of $57,248,114, or 16%, from June 30, 2011. The increase in capital assets was primarily related to the land acquisition and construction in progress costs related to the Perris Valley Line extension and tolled express lane projects. • The Commission's governmental funds reported combined ending fund balances of $575,578,619, a decrease of $13,786,025 compared to fiscal 2011. Approximately 72% of the governmental fund balances represent amounts available for the Measure A program, including debt service and funding from the issuance of sales tax revenue bonds and commercial paper notes, and the TUMF program. Overview of the Financial Statements This discussion and analysis are intended to serve as an introduction to the Commission's basic financial statements, which are comprised of three components consisting of government -wide financial statements, fund financial statements, and notes to the financial statements. This report also contains required supplementary information and other supplementary information in addition to the basic financial statements. Government -wide Financial Statements The government -wide financial statements are designed to provide readers with a broad overview of the Commission's finances, in a manner similar to a private -sector business. The statement of net position presents information on all of the Commission's assets, liabilities, and deferred inflows/outflows of resources with the difference reported as net position. Over time, increases or decreases in net position may serve as a useful indicator of whether the financial position of the Commission is improving or deteriorating. The statement of activities presents information showing how the Commission's net position changed during the fiscal year. All changes in net position are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of related cash flows. Thus, revenues and expenses are reported for some items that will only result in cash flows in future fiscal periods. The government -wide financial statements report the functions of the Commission that are principally supported by sales taxes and intergovernmental revenues, or governmental activities. The governmental activities of the Commission include general government, the Measure A program, CETAP, regional arterials, commuter rail, transit and specialized transportation services, planning and programming, bicycle and pedestrian facilities projects, and motorist assistance services. Measure A program services are divided within the three regions of Riverside County (County), namely Western County, Coachella Valley, and Palo Verde Valley. The government -wide financial statements include only the Commission and its blended component unit. The government -wide financial statements can be found on pages 16-17 of this report. Fund Financial Statements A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. Fund accounting is used to ensure and demonstrate compliance with finance - related legal requirements. All of the Commission's funds are governmental funds. Governmental funds are used to account for essentially the same functions reported as governmental activities in the government -wide financial statements; however, govemmental fund financial statements focus on near -term inflows and outflows of spendable resources and on balances of spendable resources available at the end of the fiscal year. Such information may be useful in evaluating a government's near -term financing requirements. Since the focus of governmental funds is narrower than that of the government -wide financial statements, it is useful to compare the information presented for governmental funds with similar information presented for governmental activities in the government -wide financial statements. As a result, readers may better understand the long-term impact of the government's near -term financing decisions. Both the governmental fund balance sheet and related statement of revenues, expenditures and changes in fund balances provide a reconciliation to facilitate this comparison between governmental funds and governmental activities. The Commission maintains 12 individual governmental funds. Information is presented separately in the governmental fund balance sheet and in the related statement of revenues, expenditures and changes in fund balances for the Commission's major governmental funds comprised of the General fund; Measure A Western County, Measure A Coachella Valley, Transportation Uniform Mitigation Fee, and Local Transportation Fund (LTF) Special Revenue funds; Commercial Paper and Sales Tax Bonds Capital Projects funds; and Debt Service fund. Data from the other four governmental funds are combined into a single, aggregated presentation. Individual fund data for each of these nonmajor governmental funds is provided in the form of combining statements in the other supplementary information section. The Commission adopts an annual appropriated budget for the General fund, all Special Revenue funds, all Capital Projects funds, and the Debt Service fund. Budgetary comparison schedules have been provided for the General fund and major Special Revenue funds as required supplementary information and for the nonmajor Special Revenue funds and the Capital Projects and Debt Service funds as other supplementary information to demonstrate compliance with these budgets. 4 The governmental fund financial statements, including the reconciliation between the fund financial statements and the government -wide financial statements, can be found on pages 18-21 of this report. Notes to the Financial Statements The notes provide additional information that is essential to a full understanding of the data provided in the government -wide and fund financial statements. The notes to the financial statements can be found on pages 22-44 of this report. Other Information Other information is in addition to the basic financial statements and accompanying notes to the financial statements. This report also presents certain required supplementary information concerning the Commission's budgetary results for the General fund and major Special Revenue funds as well as the schedule of funding progress for postretirement health care benefits. Required supplementary information can be found on pages 46-49 of this report. Other supplementary information is presented immediately following the required supplementary information. Other supplementary information includes the combining statements referred to earlier relating to nonmajor governmental funds; budgetary results for the nonmajor Special Revenue funds, all Capital Projects funds, and the Debt Service fund; and schedules of expenditures for local streets and roads and expenditures for transit and specialized transportation. This other supplementary information can be found on pages 53-58 of this report. Government -wide Financial Analysis As noted previously, net position may serve over time as a useful indicator of a government's financial position. At June 30, 2012, the Commission's assets exceeded liabilities by $683,532,081, a $49,721,735 increase from June 30, 2011. Our analysis below focuses on the net position and changes in net position of the Commission's governmental activities. Net Position Approximately 48%, compared to 54% in 2011, of the Commission's net position reflects its net investment in capital assets (i.e., construction and development in progress; land and improvements; rail operating easements; rail stations; office improvements; and office furniture, equipment, and vehicles), less any related outstanding debt used to acquire those assets, primarily related to land and tolled express lane projects in progress. The Commission uses these capital assets to provide transportation services to the residents and business community of the County. Although the Commission's investments in capital assets is reported net of related debt, the resources used to repay this debt must be provided from other sources, since the capital assets themselves cannot be used to liquidate these liabilities. The most significant portion of the Commission's net position represents resources subject to extemal restrictions on how they may be used. Restricted net position from governmental activities represented approximately 84% and 92% of the total net assets at June 30, 2012 and 2011, respectively. Restricted net position from govemmental activities decreased by $12,860,562, as a result of increased expenses for commuter rail cars, the tolled express lane projects, the Perris Valley Line project, local streets and roads allocations, and specialized transit allocations. These decreases to restricted assets were offset by increased Measure A, Local Transportation, and State Transit Assistance revenues. 5 Unrestricted net position represents the portion of net position that can be used to finance day-to-day operations without constraints established by debt covenants, enabling legislation, or other legal requirements. Unrestricted net position from governmental activities changed from a $293,146,251 deficit at June 30, 2011 to a $215,929,362 deficit at June 30, 2012. This deficit results primarily from the impact of recording of the Commission's long-term debt, consisting of sales tax revenue bonds and commercial paper notes, issued for Measure A highway, local street and road, and regional arterial projects. While a significant portion of the debt has been incurred to build these projects which are capital assets, upon completion for most projects, these projects are transferred to Ca!trans or the local jurisdiction. Accordingly, such projects are not assets of the Commission that offset the long-term debt in the statement of net position. The following is condensed financial data related to net position at June 30, 2012 and June 30, 2011: Net Position June 30, 2012 June 30, 2011 Current and other assets $ 620,061,008 $ 639,681,197 Capital assets not being depreciated 358,474,162 297,920,072 Capital assets being depreciated, net of accumulated depreciation 66,106,911 69,412,887 Total assets 1,044,642,081 1,007,014,156 Deferred outflows of resources Total assets and deferred outflows of resources 34,412,064 19,021,234 1,079,054,145 1,026,035,390 Long-term obligations 317,698,003 324,044,547 Other liabilities 77,824,061 68,180,497 Total liabilities 395,522,064 392,225,044 Net position: Net investment in capital assets 327,277,502 341,912,094 Restricted 572,183,941 585,044,503 Unrestricted (deficit) (215,929,362) (293,146,251) Total net position $ 683,532,081 $ 633,810,346 Changes in Net Position The Commission's total program and general revenues were $280,529,182, while the total cost of all programs was $230,807,447. Total revenues increased by 17%, and the total cost of all programs increased by 5%. Approximately 26% of the costs of the Commission's programs were paid by those who directly benefited from the programs or by other governments that subsidized certain programs with grants and contributions. Sales taxes ultimately financed a significant portion of the programs' net costs. Governmental activities increased the Commission's net position by $49,721,735, and condensed financial data related to the change in net position is presented in the table below. Key elements of this increase are as follows: • Operating grants and contributions increased by $14,755,307, or 37%, primarily due to federal and state reimbursements related to 1989 Measure A and 2009 Measure A highway projects, particularly the Interstate (I) 215 south segment project and the federal cash subsidy related to the 2010 Sales Tax Revenue Bonds (Bonds) Series B (Taxable Build America Bonds); • Capital grants and contributions decreased by $3,970,647, or 43%, because of a reduction in the Perris Valley Line project reimbursable federal expenses and Proposition 1 B state allocations for commuter rail station security projects; 6 • Measure A sales tax revenues increased by $11,544,474, or 9%, due to a modest economic recovery in the region; • Transportation Development Act (TDA) sales taxes increased by $19,271,336, or 32%, as a result of the state's reinstatement of the State Transit Assistance funds and an increase in Local Transportation fund revenues due to the modest economic recovery in the region; • Unrestricted investment earnings decreased $214,670, or 5%, because of lower interest rates and restricted cash investments; • Other miscellaneous revenues decreased $1,406,389, or 52% due to prior year revenues related to the State Route (SR) 91 Green River interchange project and Inland Empire 511 (IE511) implementation reimbursements. Year Ended Changes in Net Position June 30, 2012 June 30, 2011 Revenues Program revenues: Charges for services Operating grants and contributions Capital grants and contributions General revenues: Measure A sales taxes Transportation Development Act sales taxes Unrestricted investment earnings Other miscellaneous revenue Total revenues $ 145,735 54,641,955 5,228,621 134,984,307 80,044,131 4,196,452 1,287,981 $ 211,691 39,886,648 9,199,268 123,439,833 60,772,795 4,411,122 2,694,370 280,529,182 240,615,727 Expenses General government 7,780,478 8,453,876 Bicycle and pedestrian facilities 1,389,567 1,940,499 CETAP 4,464,387 5,490,993 Commuter assistance 3,193,172 2,868,630 Commuter rail 21,480,248 28,888,546 Highways 72,341,578 41,647,276 Local streets and roads 40,127,890 36,856,925 Motorist assistance 3,846,245 3,530,695 Planning and programming 3,924,413 4,683,272 Regional arterials 5,816,666 29,362,894 Transit and specialized transportation 51,221,772 44,699,650 Interest expense 15,221,031 11,799,586 Total expenses 230,807,447 220,222,842 Increase in net position Net position at beginning of year, as restated Net position at end of year 49,721,735 20,392,885 633,810,346 613,417,461 $ 683,532,081 $ 633,810,346 • General government expenses decreased by $673,398, or 8%, primarily as a result of professional fees in the previous year related to liquidity facilities for the commercial paper program and 2009 variable rate sales tax revenue bonds; • Bicycle and pedestrian facilities expenses decreased by $550,932, or 28%, due to a decrease in claims for approved projects; 7 • CETAP expenses decreased by $1,026,606, or 19%, due to a decrease in consultant efforts related to the Mid County Parkway project; • Commuter assistance expenses increased by $324,542, or 11%, due to the eRideguide/transit itinerary grant -funded project; • Commuter rail expenses decreased by $7,408,298, or 26%, as a result of increased right of way acquisitions related to the Perris Valley Line extension project in the previous year; • Highway expenses increased by $30,694,302, or 74%, due to preliminary engineering, right of way, construction, and design -build activities on various 1989 Measure A and 2009 Measure A Western County projects; • Local streets and roads expenses increased by $3,270,965, or 9%, because of an increase in the overall Measure A sales tax revenues which affect the local street and road distributions to local jurisdictions; • Motorist Assistance expenses increased by $315,550, or 9%, due to the newly implemented 1E511 operations during the year; • Planning and programming expenses decreased by $758,859, or 16%, due to the decrease in goods movement activities; • Regional arterial expenses decreased by $23,546,228, or 80%, as a result of a decrease in reimbursements to local jurisdictions for approved regional arterial projects; • Transit and specialized transportation expenses increased by $6,522,122, or 15%, due to an increase in bus transit operating and capital claims in all three geographic areas; and • Interest expenses increased by $3,421,445 or 29%, primarily as a result of a full year's expense related to the 2010 Bonds. The graph below presents the program and general revenues by source for the Commission's governmental activities for the fiscal year ended June 30, 2012: Charges for Other services miscellaneous 0% Capital grants revenue and contributions 0% 2% Operating grants and contributions 1 9 % Unrestricted investment earnings 2% Transportation Development Act sales taxes 29% Measure A sales taxes 48% 8 The following graph depicts program expenses for the Commission's governmental activities for the fiscal year ended June 30, 2012: $80,000,000 $70,000,000 $60,000,000 $50,000,000 $40,000,000 $30,000,000 $20,000,000 $10,000,000 $- G��PQ 5�����Ge J`e(ia� 9r�a�y a`�aay S�S�a�Ge �`�o, lac\��a ���\o�, �• .z< e ay �� �' P 'P 4 ,b � 5Qo e�e� ��e� Go eefl`y ot`y� aQc (» e ie�e Goo ce �Si3 enP 0 \a��tie� �t� �,o �`� ec Q� a 5Q e C�.(‘ Financial Analysis of the Commission's Funds As of June 30, 2012, the Commission's govemmental funds reported combined ending fund balances of $575,578,619, a decrease of $13,786,025 compared to 2011. About less than 1%, or $1,638,976, and 1%, or $5,412,830, are nonspendable and unrestricted fund balances, respectively. The nonspendable balances relate to prepaid amounts, and the unrestricted balances are assigned for general government administration activities. The remainder of the fund balance is restricted to indicate the following externally enforceable legal restrictions: • $3,296,219 in TDA funds that have been allocated to jurisdictions within the County for bicycle and pedestrian projects; • $43,636,376 for new CETAP corridors in Western County; • $13,856,135 for commuter assistance activities such as expansion of park -and -ride facilities and other projects and programs that encourage commuters to use alternative modes of transportation; • $68,981,298 for commuter rail capital projects including the Perris Valley Line extension which is expected to be completed in 2015; • $51,089,948 related to debt service that is to be paid over the next year and excess reserve funds remaining following the retirement of all debt related to the 1989 Measure A program; • $180,962,232 for highway, economic development, and new corridor projects related to the 1989 Measure A program and the 2009 Measure A program; • $3,075 for local streets and roads programs that are returned to the jurisdictions within the County for maintenance of their roads and local arterials under the 2009 Measure A program; • $7,255,289 for motorist assistance services; • $1,942,589 for planning and programming activities; • $53,951,536 for regional arterial projects in Western County; • $9,670,558 of Measure A funds for transit and specialized transportation in the Western County and $1,283,912 for specialized transportation in the Coachella Valley; and • $132,597,646 in TDA funds available to the commuter rail and bus transit operations and capital in the County. 9 The following table presents the changes in fund balances for the governmental funds for the fiscal years ended June 30, 2012 and 2011: General fund Fund Balances Year Ended June 30 2012 2011 % Change $ 13,685,227 $ 13,524,354 1% Special Revenue major funds: Measure A Western County 240,237,824 258,599,521 (7)% Measure A Coachella Valley 17,346,594 10,162,008 71% Transportation Uniform Mitigation Fee 73,224,071 73,294,737 0% Local Transportation Fund 92,088,969 82,210,219 12% Capital Projects major funds: Commercial Paper 31,143,594 33,227,032 (6)% Sales Tax Bonds 5,651,884 25,226,581 (78)% Debt Service fund 51,089,948 53,894,069 (5)% Nonmajor governmental funds 51,110,508 39,226,123 30% Key elements for the changes in fund balances are as follows: • The 7% decrease in Measure A Western County Special Revenue fund was attributed to expenditures for highway projects in excess of 2009 Measure A revenues and state and federal reimbursements; • The 71% increase in the Measure A Coachella Valley Special Revenue fund was attributed to excess 2009 Measure A revenues over expenditures for highway and regional arterial projects; • The 12% increase in the Local Transportation Fund resulted from the excess of sales tax revenues over claims of allocations for transit operations and for bicycle and pedestrian facility projects; • The 6% decrease in the Commercial Paper Capital Projects fund was attributed to the reduction in advances receivable due to scheduled payments; • The 78% decrease in Sales Tax Bonds fund was attributed primarily to reimbursements to the Measure A Western County Special Revenue fund for the SR-91 corridor improvement project; • The 5% decrease in the Debt Service fund was due primarily to the release of the $14,381,746 2009 Bonds debt service reserve fund for project costs offset by the $10,000,000 transfer of Measure A Western County bond financing funds for debt service; and • The 30% increase in nonmajor governmental funds resulted from the excess State Transit Assistance sales tax revenues over claims of allocations for transit operations. General Fund Budgetary Highlights Differences between the original budget and the final amended budget for the General fund resulted in a $203,800 increase in appropriations and were related to the following changes: • $131,000 decrease to general government for a transfer to the Measure A Western County Special Revenue fund for bond financing costs; • $1,000 increase to the commuter rail program for various supplies and materials; • $416,000 increase for various planning and programming activities including allocations to local jurisdictions for grade separation projects; • $27,000 increase to debt service for capital lease payments; and 10 • $100,000 decrease to capital outlay for a transfer to the Measure A Western County Special Revenue fund for bond financing costs. During the year, General fund revenues were below budgetary estimates by $471,606 primarily as a result of lower intergovernmental reimbursements. Expenditures were less than budgetary estimates resulting in no need to draw upon available fund balance reserves. General fund budgetary variances between the final amended budget and actual amounts are as follows: Year Ended June 30, 2012 General Fund Budgetary Variances Final Amended Budget Actual % Variance Revenues Sales taxes $ 2,700,000 $ 2,700,000 0% Intergovernmental 693,500 372,574 (46)% Interest 66,600 55,207 (17)% Other 187,200 47,913 (74)% Total revenues $ 3,647,300 $ 3,175,694 (13)% Expenditures Current General government $ 4,821,000 $ 4,188,591 13% Commuter rail 21,538,900 20,180,544 6% Planning and programming 7,428,300 3,378,765 55% Transit and specialized transportation 317,600 255,808 19% Debt service 27,000 25,241 7% Capital outlay 110,200 67,481 39% Total expenditures $ 34,243,000 $ 28,096,430 18% Other financing sources (uses) Transfers in $ 30,955,100 $ 25,633,600 (17)% Transfers out (9,200) (551,991) (5900)% Total other financing sources (uses) $ 30,945,900 $ 25,081,609 (19)% Significant budgetary variances between the final amended budget and actual amounts are as follows: • $320,926 negative variance for intergovernmental revenues primarily related to the lower intergovernmental reimbursements related to planning, programming and monitoring expenditures; • $11,393 negative variance for interest revenue related to low interest yield rates; • $139,287 negative variance for other revenues due to anticipated revenues for rail maintenance activities; • $632,409 positive variance for general government expenditures primarily related to professional services and other expenditures such as insurance, training, and travel; • $1,358,356 positive variance for commuter rail expenditures related to Metrolink operations and capital; • $4,049,535 positive variance for planning and programming expenditures related to grade separation project funding; • $61,792 positive variance for transit and specialized transportation expenditures related to personnel costs and legal and professional services; • $1,759 positive variance for debt service expenditures related to capital lease payments; • $42,719 positive variance for capital outlay expenditures; 11 • $5,321,500 negative variance for transfers in related to the anticipated needs for administrative cost allocations as well as commuter rail and property management activities; and • $542,791 negative variance for transfers out from right of way management to the Measure A Western County Special Revenue fund. Capital Assets and Debt Administration Capital Assets As of June 30, 2012, the Commission had $424,581,073, net of accumulated depreciation, invested in a broad range of capital assets including construction in progress; land and land improvements; rail operating easements and stations; and office improvements, furniture, equipment, and vehicles. The total increase in the Commission's total capital assets, net for FY 2011/12 was 16%. Major capital asset additions during 2012 included construction in progress related to preliminary engineering costs for the SR-91 and 1-15 corridor improvement and the Perris Valley Line extension projects, design -build activities for the SR-91 corridor improvement project, and land acquisition for the Perris Valley Line extension and the SR-91 corridor improvement projects. The table below is a comparative summary of the Commission's capital assets, net of accumulated depreciation: June 30, 2012 June 30, 2011 Capital Assets not being depreciated: Land and land improvements $ 186,866,554 $ 154,926,116 Rail operating easements 39,484,143 39,484,143 Construction and development in progress 132,123,465 103,509,813 Total capital assets not being depreciated 358,474,162 297,920,072 Capital Assets being depreciated, net of accumulated depreciation: Rail stations 65,632,593 68,822,531 Office improvements, furniture, equipment, and vehicles 474,318 590,356 Total capital assets, net of accumulated depreciation 66,106,911 69,412,887 Total capital assets $ 424,581,073 $ 367,332,959 More detailed information about the Commission's capital assets is presented in Note 4 to the financial statements. Debt Administration As of June 30, 2012, the Commission had $318,200,000 outstanding in 2009 and 2010 Bonds. The Commission's bonds are rated "AA+" from Standard & Poor's (S&P), "Aa2" from Moody's Investors Service (Moody's), and "AA" from Fitch Ratings (Fitch). In March 2005 the Commission established a $185,000,000 commercial paper program to provide advance funding for 2009 Measure A capital projects; the program was reduced in February 2010 to $120,000,000 as a result of the extension of the letter of credit and reimbursement agreement. The commercial paper notes are rated "A1+" by S&P and "P1" by Moody's. As of June 30, 2012, the Commission had no commercial paper notes outstanding. The sales tax revenue debt limitation for the Commission under the 2009 Measure A program is $975,000,000, which exceeds the total outstanding debt of $318,200,000. The Commission has also authorized the issuance of toll revenue bonds not to exceed $900,000,000. Additional information on the Commission's long-term debt can be found in Note 6 to the financial statements. 12 Economic Factors and Other Factors During its March 2012 Commission meeting, the Commission adopted guiding principles for use in the preparation of the FY 2012/13 Budget. These principles have been incorporated in goals of the Commission and will continue to be updated annually in response to the ever -changing social, political, and economic environment. The principles are a business planning tool designed to assist the Commission in implementing its strategic goals and objectives and lays the foundation for future financial planning for the annual budget process. The Commission adopted the FY 2012/13 annual budget on June 7, 2012. Over 64% of the $634,786,100 balanced budget is related to capital project expenditures, including: $95,450,000 for preliminary engineering, right of way acquisition, and design -build activities related to the SR-91 corridor improvement project consisting of tolled express and general purpose lanes and interchange improvements; $83,670,000 for the Perris Valley Line Metrolink extension project engineering, final design, construction, and right of way acquisition; $39,661,000 for various Western County TUMF regional arterial projects; $14,345,000 for final design and right of way acquisition related to the SR-91 high occupancy vehicle lanes from Adams Street to the 60/91/215 interchange; $10,763,000 for final design, right of way acquisition, and construction related to the 1-215 corridor improvements from Scott Road to Nuevo Road; $8,000,000 for preliminary engineering services related to the 1-15 corridor improvements; $6,320,000 for construction related to the 1-215 corridor improvements from 1-15 to Scott Road; and $5,250,000 for final design and right of way acquisition on the 91/71 interchange improvements project. Distributions to the local jurisdictions for local streets and roads are budgeted at $39,357,000. Budgeted expenditures related to funding of public bus transit operations and capital projects in the County aggregate $84,049,300, and budgeted transfers out related to funding of commuter rail operations and capital are $18,609,700. Debt service costs are $143,413,000, or 23% of the budget. Leading economic indicators show that the local economic outlook is encouraging with the stabilization of sales tax revenues. However, the state and federal budget issues continue to affect funding of the Commission's capital projects and programs. These factors were considered in preparing the Commission's 2013 fiscal year budget, including the sales tax and TUMF fee revenue projections. There are obvious variables in terms of project financing available from federal and state funds. There is continuing uncertainty related to the fiscal condition of the state of California and the impact on transportation as well as the uncertainties regarding long-term federal transportation funding. The Commission continues to study alternative financing alternatives such as tolled express lane facilities and federal financing programs to support the delivery of 2009 Measure A projects. Contacting the Commission's Management This financial report is designed to provide a general overview of the Commission's finances for all those with an interest in the government's finances and to show the Commission's accountability for the money it receives. Questions concerning any of the information provided in this report or requests for additional information should be addressed to the Chief Financial Officer, Finance Department at the Riverside County Transportation Commission, 4080 Lemon Street, 3rd Floor, P.O. Box 12008, Riverside, California 92502-2208. 13 This page intentionally left blank. 14 Basic Financial Statements Riverside County Transportation Commission Statement of Net Position June 30, 2012 Governmental Activities Assets Cash and investments $ 496,215,753 Receivables: Accounts 77,854,991 Advances to other governments 33,573,405 Interest 457,536 Due from other governments 248,509 Prepaid expenses and other assets 1,638,976 Restricted investments held by trustee 10,071,838 Capital assets not being depreciated 358,474,162 Capital assets, net of accumulated depreciation 66,106,911 Total assets 1,044,642,081 Deferred outflows of resources Accumulated decrease in fair value of derivatives Total assets and deferred outflows of resources Liabilities Accounts payable Interest payable Other liabilities Derivative instrument -Swap Long-term liabilities: Due within one year Due in more than one year Total liabilities 34,412,064 1,079,054,145 41,159,814 1,248,782 1,003,401 34,412,064 7,035,715 310,662,288 395,522,064 Net position Net investment in capital assets 327,277,502 Restricted for: Bicycle and pedestrian facilities 3,296,219 CETAP 43,636,385 Commuter assistance 13,859,395 Commuter rail 68,982,995 Debt service 51,089,948 Highways 178,002,397 Local streets and roads 6,603,611 Motorist assistance 7,255,420 Planning and programming 1,942,626 Regional arterials 53,962,829 Transit and specialized transportation 143,552,116 Unrestricted (deficit) (215,929,362) Total net position $ 683,532,081 See notes to financial statements 16 Functions/Programs Riverside County Transportation Commission Statement of Activities Year Ended June 30, 2012 Net (Expense) Revenue Program Revenues and Changes in Net Assets Charges for Operating Grants Capital Grants Governmental Expenses Services and Contributions and Contributions Activities Primary Government Governmental Activities: General government $ 7,780,478 $ $ 240,124 $ Bicycle and pedestrian facilities 1,389,567 CETAP 4,464,387 3,144,914 Commuter assistance 3,193,172 - 1,320,861 Commuter rail 21,480,248 145,735 177,299 Highways 72,341,578 - 42,000,278 Local streets and roads 40,127,890 Motorist assistance 3,846,245 - 4,216,385 Planning and programming 3,924,413 192,533 Regional arterials 5,816,666 3,264,674 Transit and specialized transportation 51,221,772 84,887 Interest expense 15,221,031 - Total governmental activities $ 230,807,447 $ 145,735 $ 54,641,955 $ See notes to financial statements 5,228,621 5,228,621 General Revenues: Measure A sales taxes Transportation Development Act sales taxes Unrestricted investment earnings Other miscellaneous revenue Total general revenues Change in net assets (7,540,354) (1,389,567) (1,319,473) (1,872,311) (15,928,593) (30,341,300) (40,127,890) 370,140 (3,731,880) (2,551,992) (51,136,885) (15,221,031) (170,791,136) 134,984,307 80,044,131 4,196,452 1,287,981 220,512,871 49,721,735 Net position at beginning of year, as restated 633,810,346 Net position at end of year $ 683,532,081 17 Riverside County Transportation Commission Balance Sheet • Governmental Funds June 30, 2012 Major Funds Special Revenue Capital Projects Transportation Other Measure Measure Uniform Local Sales Nonmajor Western Coachella Mitigation Transportation Commercial Tax Debt Governmental General County Valley Fee Fund Paper Bonds Service Funds Total Assets Cash and investments $ 14,879,679 $ 220,230,494 $ 15,091,005 $ 74,793,304 $ 79,798,943 $ 274,385 $ 29,960 $ 43,904,949 $ 47,213,034 $ 496,215,753 Receivables: Accounts 337,156 48,592,349 6,129,281 2,172,759 13,040,856 2,304,900 5,277,690 77,854,991 Advances 30,633,808 2,939,597 300,000 33,873,405 Interest 9,343 211,471 14,210 69,235 67,626 2,101 3,201 31,056 49,293 457,536 Due from other funds 1,033,173 20,001 185,100 476,998 4,976 - 1,720,248 Prepaid expenditures and other assets 157,957 1,480,880 9 - - 130 1,638,976 Restricted investments held by trustee - - 263 2,732,532 7,339,043 - 10,071,838 Total assets $ 16,417,308 $ 270,535,195 $ 21,419,596 $ 77,035,307 $ 92,907,425 $ 33,692,455 $ 5,710,266 $ 51,275,048 $ 52,840,147 $ 621,832,747 Liabilities and Fund Balances Liabilities: Accounts payable $ 2,551,098 $ 29,722,500 $ 3,630,252 $ 3,568,539 $ 610,900 $ - $ $ $ 1,076,525 $ 41,159,814 Advances payable 300,000 300,000 Due to other funds 289,035 442,750 242,697 207,556 185,100 353,110 1,720,248 Other liabilities 180,983 285,836 2,548,861 58,382 4 3,074,066 Total liabilities 2,732,081 30,297,371 4,073,002 3,811,236 818,456 2,548,861 58,382 185,100 1,729,639 46,254,128 Fund balances Nonspendable-prepaid amounts 157,957 1,480,880 9 130 1,638,976 Restricted for: Bicycle and pedestrian facilities 3,296,219 3,296,219 CETAP 43,636,376 43,636,376 Commuter assistance 13,856,135 13,856,135 Commuter rail 6,221,488 62,759,810 68,981,298 Debt service 51,089,948 51,089,948 Highways 128,105,631 16,061,123 31,143,594 5,651,884 180,962,232 Advances receivable Local streets and roads 960 1,559 556 3,075 Motorist assistance 7,255,289 7,255,289 Planning and programming 1,892,952 49,637 1,942,589 Regional arterials 24,363,850 29,587,686 53,951,536 Transit and specialized transportation 9,670,558 1,283,912 88,743,113 43,854,533 143,552,116 Assigned: General government 5,412,830 5,412,830 Total fund balances 13,685,227 240,237,824 17,346,594 73,224,071 92,088,969 31,143,594 5,651,884 51,089,948 51,110,508 575,578,619 Total liabilities and fund balances $ 16,417,308 $ 270,535,195 $ 21,419,596 $ 77,035,307 $ 92,907,425 $ 33,692,455 $ 5,710,266 $ 51,275,048 $ 52,840,147 $ 621,832,747 See notes to financial statements 18 Riverside County Transportation Commission Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Position June 30, 2012 Total fund balances - Governmental funds (page 18) Amounts reported for governmental activities in the statement of net position (page 16) are different because: Amounts due from other governments are not an available resource and therefore, is not reported in the funds. Deferred outflows of resources relate to the accumulated decrease in the fair value of derivatives, which is not recorded in the funds. Capital assets, less related accumulated depreciation, used in governmental activities are not financial resources and therefore are not reported in the funds. Other long-term assets are not available to pay for current period expenditures and, therefore, are reported as unavailable revenue in the funds. $ 575,578,619 248,509 34,412,064 424,581,073 2,070,665 Interest payable on bonds outstanding is not due and payable in the current period and therefore is not reported in the funds. (1,248,782) Long-term liabilities are not due and payable in the current period and therefore are not reported in the funds. Those liabilities consist of: Derivative instrument -swap Compensated absences Capital lease obligation Debt issuance payable Discount omdebt issuances Net adjustment Net position of governmental activities (page 16) See notes to financial statements (34,412,064) (528,949) (30,943) (318,200,000) 1,061,889 (352,110,067) $ 683,532,081 19 oZ 6L9'8L9'9L9 $ 909'0LL'L9 449'49£'699 CZL'9ZZ'6£ (SZO'98L'£L) 99E'48B'lL $ 846'680'LS $ 498'L99'S 6901468'ES L89'9ZZ'9Z (LZL'408'Z) (L69'4L9'6L) $ 46S'E4l'le ZCO'LZZ'EE (6£4'£90'Z) $ 696'880'Z6 6LZ'OLZ'Z8 OSL'8L9'6 $ LLO'4ZZ'£L LEL'46Z'EL (sou) $ 469'94E'LL $ 4Z8'LEZ'04Z $ LZZ'S89'EL $ 800'Z9l'Ol LZ9'669'89Z 49E'4Z9'EL 989'49L'L (L69'L9E'9L) EL8'09L 000'000'04 (969'96Z) (L9L'LL6'£ZL) (969'960'0 L9 L'LL6'EZ l 000'008 000'000'04 (9Z0'98L'£9) 096'08L'ZL 81 '999'9L (489'L94'6L) at's LOSE (69Z'Z9E'8 L) (086'849'60 (£94'ZZ9'8E) E94'EL l'6 L 9ZL'498'9£ (L94'01.6'14) 9ZL'4L4'£ LOL'48Z (6L0'904'9) 609'1.90V (8L9'6EL'4) (LS4'OL6'17l) (4Z0'LZZ) (9Lf'LLL'44) (1.66'L99) EOB'E ZSL'LOL'C LOL'48Z 96Z'99E'6C 009'££9'9Z 000'000'04 (£99'L46'L£) LOZ'68L'4Z (46L'449'£) 984'006'9 (9L9'996'Zl) (9EL'OZ6'4Z) OngL'4EE LZO'Z9L'9 9LL'60Z Z8S'£OS'LZ £08'E0004 ZL0'9ZL'Z4 6Z6'08Z'OL L94'LLL'4Z 446'LSZ'L9L 9CZ'Z4 L OE4'960'BZ L84'L9 sluswale)s tepueuy 01 salou ass ieaA )o pue le seoueleq pund matt to 6u1146eq )e seoueleq pund seoueieq pun) ui 0611e40 )aN (sasn) mines 6upueug.10410 lelol )no sialsueil ui sia)sueil eouenssilga0 :(sasn) somas 6woueug Ja410 sasn puedxe (Japun) Jana senuanai to Vouaiogap) sseox3 sanmpuedxe lelol Lepno leude0 9Z9'ZE9' L9 ZBS'E09' LZ E08'£00'04 1.4Z'9Z ovum Km rep' 969'800'9 L Z99'E00'9 L E08'E 0 LC' L )seJelui LE6'EZ9'94 000'009'9 000'000'04 LE6'EZ iedpuud yeas lga0 906'CWZLZ LZO'ZSL'9 ZL0'9ZL'Z4 6Z6'08Z'OL L94'1.Ll'4Z 60L'60L'L9L 80L'f00'BZ swei6mdpoi ZLL'LZZ'L9 L9Z'E00'Z 09L'68l'04 Z49'89Z'4 91.4'4L9'4 808'SSZ uogepodsueilpa opedspue l!sued 999'9L9'9 Z49'9l8'9 4Zl sleuepe leuoi6aH OZ9'f L6'8 99L'4E9 99L'8LE'E 6u1wwei6oid pue 6wuueld 94Z'949'E 94Z'948'E aouelslsselspolon O68'LZL'04 6LS'Z06 L99.648'0L 499'9LE'BZ spew pue slams pool Z09'6170'llL 8EZ'E90'6 49Z'986'LOL sAeM46!H OL9'0L9'6£ 9Z L'069'6l 449'08 L'OZ llei Jalnwwo0 094'LS L'E 084'L9 L'C aouelslsse ialnwwo0 L9£'494'4 L8f'494'4 dy130 L99'68E'L L99'68E'l saggioel ueulseped pue epAoig LOZ'99S'L 000'Zl 9L9'98E'E L69'991•14 )uawwan06ieieua0 :luaim0 semllpuedx3 EZZ'004'08Z L00'EE6'8L ELE'l4L'E E8Z'4L 04Z'990'Z 6LZ'9L6'99 SEL'9EL'9 Z96'LLO'LC 9ZE'96Z'94L 469'9LL'£ senuenai le)ol S6COD' L LEL'LOL - - - - L9917LZ'L £L6'L4 Ja410 96E'80E'4 906'92 OZ9'99L EBZ'4L 04Z'990'Z LEB'LL£ 949'9Zf 990'£9 Z69'0170'L LOZ'SS lsaialul 9LL'91.9'L9 L9S'9LZ'4 £69'986'Z 911'04 69L'6LL 6LL'6 808'LLL'C4 4L9'ZLE leluawwenoaqul OZ4'9Ll'8 8Z8'68Z'9 - Z69'9Z8'l aaduoge6munopu(luogepodsumi 9E4'9Z0'SLZ $ LL6'69E'4L $ - $ - $ - $ CL9'999'99 $ $ 90L'666'0E $ £B9'ZB£'OOL $ 000'00n $ sexel sales senuenaa ielol spund avues spuog Jaded pund aad RalleA l4uno0 le)uawuwano0 )qa0 xel lepawwo0 uopepodsueul uope6pm ella4oeo0 wa)saM uo(ewuoN sales pool wiollup ya.1nseaw yamseaw u8410 uopepodsueil sloatad ieude0 anuanag moods ienua0 spundJofew ZLOZ'OE aunt' papu3 ueaA spund lelumuumo0 • saoueleg pund u1 sa6ue40 pue semi puedx3'sonueneN to luawale)s uolssiwwo0 uopepodsueil6luno0 episianN Riverside County Transportation Commission Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to the Statement of Activities For the Year Ended June 30, 2012 Net change in fund balances • Total governmental funds (page 20) $ (13,786,025) Amounts reported for governmental activities in the statement of activities (page 17) are different because: Governmental funds report capital outlays as expenditures. However in the statement of activities, the cost of those assets is allocated over their estimated useful lives and reported as depreciation expense. The adjustment combines the net changes of the following amounts: Capital outlay Depreciation expense Net adjustments 60,756,021 (3,507,907) 57,248,114 Revenues in the statement of activities that do not provide current financial resources 125,438 are not reported as revenues in the funds. The issuance of long-term debt (e.g., bonds) provides current financial resources to govemmental funds, while the repayment of the principal of long-term debt consumes the current financial resources of governmental funds. Neither transaction, however, has any effect on net position. Also, governmental funds report the effect of premiums, discounts, and similar items when debt is first issued, whereas these amounts are deferred and amortized in the statement of activities. The adjustment combines the net changes of the following amounts: Principal payments for commercial paper notes Principal payments for sales tax revenue bonds Issuance of commercial paper notes Amortization of bond discount Capital lease payments Change in accrued interest Net adjustments Some expenses reported in the statement of activities do not require the use of current financial resources and therefore are not reported as expenditures in govemmental funds. The adjustment combines the net changes of the compensated absences. Change in net assets of governmental activities (page 17) See notes to financial statements 40,000,000 6,500,000 (40,000,000) (101,037) 23,931 (212,336) 6,210,558 (76,350) $ 49,721,735 21 Riverside County Transportation Commission Notes to Financial Statements June 30, 2012 Note 1. Summary of Significant Accounting Policies Reporting entity: The Riverside County Transportation Commission (Commission) was formed in 1976 under Division 12 (commencing with Section 130000) of the California Public Utilities Code. The Commission is a special district governed by a 34-member board of commissioners (Board) consisting of one representative from each city in the county, all five county supervisors, and a nonvoting state representative. The Commission provides short-range transportation planning and programming for Riverside County (County), which includes the administration of the Local Transportation Fund (LTF) and the State Transit Assistance (STA) programs created under the Transportation Development Act (TDA) by the State of California (State). The LTF is administered by the Commission on behalf of the County. The purpose of this program is to allocate funds for public transportation needs, local streets and roads, bicycle and pedestrian facilities, and multimodal transportation terminals. The STA program allocates funds for public transportation purposes to those geographic areas with special public transportation needs, which cannot be met otherwise. On November 8, 1988, the Commission was empowered by the voters of the County, under Ordinance No. 88-1 (1989 Measure A), to collect a one-half of one percent sales tax for the purpose of improving the transportation system of the County. Measure A was enacted, in part, pursuant to the provisions of Division 25 (commencing with Section 240000) of the Califomia Public Utilities Code and Section 7252.22 of the Revenue and Taxation Code. On November 12, 2002 Riverside County's voters approved a 30-year renewal of Measure A under Ordinance No. 02-001 (2009 Measure A). The voter action ensures the replacement of the 1989 Measure A program when it expired in 2009 with a new 30 year program that will continue funding transportation improvements until June 2039. In connection with the 2009 Measure A program, the County and cities in the Western County area implemented a Transportation Uniform Mitigation Fee (TUMF) program to fund a regional arterial system to handle the traffic demands in the Western Riverside County (Western County) area as a result of future development. Under the 2009 Measure A program, the Commission shall receive the first $400 million of TUMF revenues to fund the regional arterial projects and new Community Environmental Transportation Acceptability Process (CETAP) corridors included in the 2009 Measure A Transportation Improvement Plan. Under the Memorandum of Understanding (MOU), the majority of net revenues are allocated in equal amounts to the Commission for regional arterial projects and to Western Riverside Council of Governments (WRCOG) for local arterial projects; a small percentage is allocated for public transit. In September 2008, the Commission approved an amendment to the MOU whereby the $400 million cap was lifted and the Commission will continue to receive its share of TUMF revenues indefinitely. Accounting principles generally accepted in the United States require that the reporting entity include the primary government, organizations for which the primary government is financially accountable, and other organizations for which the nature and significance of their relationship with the primary government are such that exclusion would cause the reporting entity's financial statements to be misleading or incomplete. The basic financial statements include all funds of the Commission including those of the Service Authority for Freeway Emergencies (SAFE), a component unit, for which the Commission is considered financially accountable. SAFE was created under Chapter 14 (commencing with Section 2550) of Division 3 of the California Streets and Highways Code and Sections 2421.5 and 9250.1 of the Vehicle Code. SAFE receives monies from fees levied on registered vehicles to be used to implement and maintain an emergency motorist aid system, as specified, on portions of the California Freeway and Expressway System in the County. The governing body of SAFE is substantially identical to that of the Commission and is responsible for approval of SAFE's budget. SAFE is presented as a special revenue fund. Separate financial statements are not issued for SAFE. There are many other governmental agencies, including the County of Riverside, providing services within the area served by the Commission. These other governmental agencies have independently elected governing boards and 22 Riverside County Transportation Commission Notes to Financial Statements June 30, 2012 Note 1. Summary of Significant Accounting Policies, Continued consequently are not under the direction of the Commission. Financial information for these agencies is not included in the accompanying financial statements. Basis of presentation: The Commission's basic financial statements consist of government -wide financial statements, including a statement of net position and a statement of activities, and fund financial statements which provide a more detailed level of financial information. Government -wide statements: The statement of net position and the statement of activities report information on all of the nonfiduciary activities of the Commission. The effect of interfund activity has been removed from these statements. These statements report govemmental activities, which normally are supported by taxes and intergovernmental revenues. The Commission does not have any business -type activities, which rely to a significant extent on charges and fees for support. The statement of activities demonstrates the degree to which the program expenses of a given function are offset by program revenues. Program expenses include direct expenses, which are clearly identifiable with a specific function, and allocated indirect expenses. Program revenues include 1) charges to customers or applicants who purchase, use, or directly benefit from goods, services, or privileges provided by a given function and 2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular function. Taxes and other internally dedicated resources, which are properly not included among program revenues, are reported instead as general revenues. Fund financial statements: The fund financial statements provide information about the Commission's governmental funds; the Commission has no proprietary or fiduciary funds. The emphasis of fund financial statements is on major governmental funds, each displayed in a separate column. The Commission has categorized the Sales Tax Bonds Capital Projects Fund and Debt Service Fund as major funds for public interest reasons. The Commission believes that these judgmentally determined major funds are particularly important to the financial statement users. All remaining governmental funds are aggregated and reported as nonmajor funds. The Commission reports the following major governmental funds: General Fund: The General Fund is the general operating fund of the Commission and accounts for financial resources not required to be accounted for in another fund. Measure A Western County Special Revenue Fund: This fund accounts for the revenues from sales taxes which are restricted to expenditures for 1989 Measure A and 2009 Measure A Western County programs. Measure A Coachella Valley Special Revenue Fund: This fund accounts for the revenues from sales taxes which are restricted to expenditures for 2009 Measure A Coachella Valley programs. Transportation Uniform Mitigation Fee Special Revenue Fund: This fund accounts for TUMF revenues, which are restricted to expenditures for Western County regional arterial and CETAP projects. Local Transportation Fund: This special revenue fund accounts for the one -quarter percent of the state sales tax collected within the County under TDA for planning and programming, bicycle and pedestrian facilities, and transit operations including the Commission's commuter rail operations. Commercial Paper Capital Projects Fund: This fund records proceeds from the issuance of commercial paper notes and the use of these proceeds for capital projects included in the 2009 Measure A. 23 Riverside County Transportation Commission Notes to Financial Statements June 30, 2012 Note 1. Summary of Significant Accounting Policies, Continued Sales Tax Bonds Capital Projects Fund: This fund records proceeds from the issuance of sales tax revenue bonds and the use of these proceeds for capital projects included in the 2009 Measure A. Debt Service Fund: This fund accounts for the resources accumulated and payments made for principal and interest on the sales tax revenue bonds. Measurement focus and basis of accounting: The government -wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting. Revenues are recorded when earned, and expenses are recorded when a liability is incurred, regardless of the timing of related cash flows. Grants and similar items are recognized as revenue as soon as all eligibility requirements imposed by the provider have been met. Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both measurable and available. Revenues are considered to be available when they are collectible within the current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the Commission considers revenues to be available if they are collected within 180 days of the end of the current fiscal period. Expenditures generally are recorded when a liability is incurred; however, principal and interest expenditures on long-term debt as well as compensated absences and claims and judgments are recorded only when payment is due. Issuance of long-term debt and acquisitions under capital leases are reported as other financing sources. Those revenues susceptible to accrual include sales taxes collected and held by the State at year-end on behalf of the Commission, TUMF, intergovernmental revenues when all applicable eligibility requirements have been met, interest revenue, and vehicle registration user fees. Cash and investments: The Commission maintains cash and investments in accordance with an investment policy adopted initially by the Board on September 13, 1995, and most recently amended June 7, 2012. The investment policy complies with, or is more restrictive than, applicable state statutes. Investments of bond and commercial paper proceeds as permitted by the applicable bond documents are maintained by U.S. Bank as custodial bank, and the earnings for each bond and commercial paper issue are accounted for separately. Cash from other Commission revenue sources is commingled for investment purposes, with investment earnings allocated to the different funds based on average monthly dollar balances in the funds. The Commission's investment policy authorizes investments in U.S. Treasury notes and bonds, federal agency notes, repurchase agreements, corporate bonds, commercial paper, banker's acceptances, money market mutual funds, the Riverside County Pooled Investment Fund (RCPIF), the State of California Local Agency Investment Fund (LAIF), and certificates of deposit. Other investments permitted by the California Government Code (Code) are permitted but only with prior Board authorization; securities that could result in zero interest accrual if held to maturity are ineligible. LAIF is regulated by Code Section 16429 and is under the management of the State Treasurer with oversight provided by the Local Agency Investment Advisory Board. Oversight of the RCPIF is conducted by the County Treasury Oversight Committee. All investments, except for those related to bond reserve funds, are subject to a maximum maturity of five years unless specific direction to exceed the limit is given by the Board. Local Transportation Fund moneys are legally required to be deposited in the RCPIF. The RCPIF and the LAIF are carried at fair value based on the value of each participating dollar as provided by the RCPIF and LAIF, respectively. The fair value of the Commission's position in the RCPIF and LAIF is the same as the value of the pool shares. Investments in U.S. government and agency securities are carried at fair value based on quoted market prices. Money market mutual funds are carried at fair value based on each fund's share price. 24 Riverside County Transportation Commission Notes to Financial Statements June 30, 2012 Note 1. Summary of Significant Accounting Policies, Continued Bank balances are secured by the pledging of a pool of eligible securities to collateralize the Commission's deposits with the bank in accordance with the Code. Accounts receivable: Accounts receivable consist primarily of Measure A and LTF sales tax revenues from the State Board of Equalization on all taxable sales within the County of Riverside, California through June 30, 2012. Interfund transactions: During the course of operations, numerous transactions occur between individual funds involving goods provided or services rendered. There are also transfers of revenues from funds authorized to receive the revenue to funds authorized to expend it. Outstanding interfund balances are reported as due from/to other funds; internal financing balances are reported as advances to/from other funds. Prepaid items and other assets: Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid items using the consumption method in both the government -wide and fund financial statements. Restricted investments held by trustee: Restricted investments held by trustee represent unexpended bond proceeds, interest earnings thereon, and capitalized interest and reserve amounts of sales tax revenue bonds. Under the related bond resolutions and indentures, any remaining bond proceeds are restricted for the use of future construction improvements to the respective projects, for debt service, or for reserve requirements in accordance with applicable debt covenants. Capital assets: Capital assets consisting of land and land improvements; construction in progress; rail easements; rail stations; and office furniture, equipment, and vehicles are reported in governmental activities in the government - wide financial statements. Capital assets are defined by the Commission as assets with an initial, individual cost of more than $5,000 and an estimated useful life in excess of three years and are primarily included within the function of current expenditures in the fund financial statements. Such assets are recorded at historical costs or estimated historical costs if purchased or constructed. Donated capital assets are recorded at estimated fair value at the date of donation. Highway construction and certain purchases of right of way property, for which title vests with the California Department of Transportation, are included in highway program expenditures. Infrastructure consisting primarily of highway construction and right of way acquisition is not recorded as a capital asset, because the Commission does not have title to such assets or rights of way. However, costs related to the development of tolled express lanes are recorded as intangible assets within construction in progress. The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend the life of the asset are not capitalized. Rail stations, furniture and equipment, and vehicles of the primary government are depreciated using the straight-line method over the following estimated useful lives: Asset Type Useful Life Rail stations 10 to 30 years Office furniture and equipment 3 to 5 years Vehicles 5 years Compensated absences: Vacation leave in governmental funds that is due and payable at year-end is reported as an expenditure and a liability of the General fund. All earned vacation leave, including the amount that is not currently due, is reported as a long-term liability in the government -wide financial statements. 25 Riverside County Transportation Commission Notes to Financial Statements June 30, 2012 Note 1. Summary of Significant Accounting Policies, Continued Sick leave is recorded as an expenditure in the General fund when taken by the employee. Employees with continuous five years of service have the option of being paid for sick leave accumulated in excess of 240 hours at a rate of 50% (i.e., one hour's pay for every two hours in excess of 240). Any sick leave in excess of 240 hours is accrued at fiscal year end, and a liability is reported in the government -wide financial statements. Sick leave that is due and payable at year-end is reported as an expenditure and a fund liability of the General fund. Risk management: The Commission is exposed to various risks of loss related to torts; theft of, damage to, or destruction of assets; and errors or omissions. The Commission protects itself against such losses by a balanced program of risk retention, risk transfers, and the purchase of commercial insurance. Loss exposures retained by the Commission are treated as normal expenditures and include any loss contingency not covered by the Commission's purchased insurance policies. Construction projects and rail properties are protected through a combination of commercial insurance, insurance required of Commission consultants, and a self-insurance fund established by the Southern California Regional Rail Authority (SCRRA). Settled claims have not exceeded insurance coverage in any of the past three fiscal years. Deferred outflows of resources: In 2012, the Commission implemented GASB Statement No. 63, Financial Reporting of Deferred Outflows of Resources, Deferred Inflows of Resources, and Net Position. GASB Statement No. 63 provides financial reporting guidance for deferred outflows of resources and deferred inflows of resources and their effects on the Commission's net position. In addition to assets, the statement of financial position reports a separate section for deferred outflows of resources. This separate financial statement element represents a consumption of net position that applies to a future period and will not be recognized as an outflow of resources, or expenditure, until then. The Commission only has one item, accumulated decrease in fair value of derivatives, which qualifies for reporting in this category in the government - wide statement of net position. Because the terms of the derivatives qualify as a hedge, the change in the fair value of derivatives is deferred until termination or maturity of the derivatives. Fund equity: In the fund financial statements, the governmental funds may report fund balances in various categories based on the nature of any limitations requiring the use of the resources for specific purposes: Nonspendable fund balances cannot be spent, because they are in nonspendable form such as prepaid expenditures or are required to be maintained intact. Restricted fund balances are restricted for specific purposes by third parties or enabling legislation. Committed fund balances include amounts that can be used only for specific purposes determined by formal action of the Board. These committed amounts cannot be used for any other purpose unless the Commission removes or changes the specified use through the same type of formal action taken to establish the commitment. Assigned fund balances comprise amounts intended to be used by the Commission for specific purposes but are not restricted or committed. The Board delegates the authority to assign amounts to be used for specific purposes to the Chief Financial Officer. Assignments generally only exist temporarily; an additional action does not have to be taken for the removal of an assignment. Unassigned fund balances are residual positive net resources of the General Fund in excess of what can properly be classified in one of the other four categories. 26 Riverside County Transportation Commission Notes to Financial Statements June 30, 2012 Note 1. Summary of Significant Accounting Policies, Continued When both restricted and unrestricted resources are available for an incurred expenditure, it is the Commission's policy to spend restricted resources first and then unrestricted resources, as necessary. When unrestricted resources are available for an incurred expenditure, it is the Commission's policy to use committed amounts first, followed by assigned amounts, and then unassigned amounts. The Commission established a policy on reporting and classifying fund balance in the General fund in June 2012. Net position: In the government -wide financial statements, net position represents the difference between assets and liabilities and is classified into three categories: Net investment in capital assets consists of capital assets, net of accumulated depreciation, reduced by the outstanding balances of any borrowings used for the acquisition, construction, or improvement of those assets and excludes unspent debt proceeds. Restricted —net position represents the net position that is not accessible for general use because its use is subject to restrictions enforceable by third parties and enabling legislation. Unrestricted —(deficit) represents the amount of unrestricted resources that will need to be provided for in future periods. When both restricted and unrestricted resources are available for use, it is the Commission's policy to use restricted —net position resources first and then unrestricted —net position resources, as they are needed. Administration expenditures: The Commission's staff and resources are used in the performance of its responsibilities relating to the activities of the Commission and its component unit. Accordingly, the Commission allocates salaries and benefits to each applicable fund on the basis of actual hours spent by activity, and other indirect overhead is allocated based on a systematic basis. Administrative salaries and benefits of $1,204,266 allocated to Measure A in 2012 were less than 1 % of revenues and in compliance with the law. Note 2. Cash and Investments Cash and investments at June 30, 2012 consist of the following: Unrestricted Restricted Cash Investments Total Investments Total Cash in bank $ 602,089 $ — $ 602,089 $ — $ 602,089 Petty cash 1,018 — 1,018 — 1,018 RCPIF — 492,001,802 492,001,802 2,732,512 494,734,314 LAIF — 3,610,844 3,610,844 — 3,610,844 Investments with fiscal agents — — — 7,339,326 7,339,326 Total cash and investments $ 603,107 $ 495,612,646 $ 496,215,753 $ 10,071,838 $ 506,287,591 27 Riverside County Transportation Commission Notes to Financial Statements June 30, 2012 Note 2. Cash and Investments, Continued As of June 30, 2012, the Commission had the following investments: Investment Maturities Fair Value First American Government Obligations mutual fund LAIF RCPIF US Bank Money Market mutual fund Total investments 44 days average $ 7,339,306 238 days average 3,610,844 438 days average 494,734,314 1 days average 20 $ 505,684,484 Interest rate risk: While the Commission does not have a formal policy related to the interest rate risk of investments, the Commission's investment policy follows the Code as it relates to limits on investment maturities as a means of managing exposure to fair value losses arising from increasing interest rates. Custodial credit risk: Custodial credit risk for deposits is the risk that, in the event of the failure of a depository financial institution, a government will not be able to recover its deposits or will not be able to recover collateral securities that are in the possession of an outside party. The custodial credit risk for investments is the risk that, in the event of the failure of the counterparty (e.g., broker -dealer) to a transaction, a government will not be able to recover the value of its investment or collateral securities that are in the possession of another party. The Commission's investment policy requires that a third party bank trust department hold all securities owned by the Commission. All trades are settled on a delivery versus payment basis through the Commission's safekeeping agent. The Commission has deposits with a bank balance of $2,067,991 with a financial institution; bank balances over $5,000,000 are swept daily into a money market account. Of the bank balance, up to $250,000 is federally insured under the Federal Depository Insurance Corporation with balances in excess of $250,000 collateralized in accordance with the Code; however, the collateralized securities are not held in the name of the Commission. Credit risk: As of June 30, 2012, the Commission's investment in the RCPIF was rated Aaa/MR1 by Moody's Investors Service (Moody's) and AAAN1 by Fitch Ratings (Fitch). The investments in the US Bank Money Market mutual fund and First American Government Obligations mutual fund were both rated AAA by both Moody's and Standard & Poor's Rating Service (S&P). LAIF is not rated. The Commission's investment policy only requires credit quality ratings for repurchase agreements, U.S. corporate debt, commercial paper, bankers acceptances and certificates of deposit. Concentration of credit risk: The Commission's investment policy places a limit of 10% on the amount of investment holdings with any one non -governmental issuer. More than five percent of the Commission's investments are in the RCPIF. This investment is 97.8% of the Commission's investments. The investments in the Sales Tax Bonds Capital Projects fund are unexpended bond proceeds invested in the RCPIF, First American Government Obligations Fund, and US Bank Money Market fund. The investments in the Debt Service fund are reserve funds invested in the First American Government Obligations fund and US Bank Money Market fund for interest and principal as required by the bond agreements. 28 Riverside County Transportation Commission Notes to Financial Statements June 30, 2012 Note 3. Advances The Commission has approved interest -bearing advances to other govemments, which may be funded by debt proceeds, to the cities of Blythe, Canyon Lake, and Indio and the Coachella Valley Association of Governments (CVAG) in the amounts of $1,500,000, $600,000, $4,000,000, and $43,300,000, respectively. The cities have pledged their share of 2009 Measure A local streets and roads revenues, and CVAG has pledged its share of 2009 Measure A highway and regional road revenue allocations in accordance with repayment terms specified in each agreement for actual advances. Repayment amounts are withheld from revenue allocations on a monthly basis. The final maturities of the cities of Blythe and Indio advances are due on or before September 1, 2019; the final maturity of the city of Canyon Lake advance is due within ten years following the initial advance; and the final maturities of the CVAG advances are due on or before September 1, 2029. Interest rates range from 4.972% to 7.307%, excluding the portion of cash subsidy payments (as discussed in Note 6) that may be received by CVAG to reduce its repayment obligations. No amounts were advanced to the city of Canyon Lake as of June 30, 2012, and the available advances to CVAG are $14,231,161 as of June 30, 2012. The outstanding advances, including capitalized interest of $2,059,185, as of June 30, 2012 were as follows: City of Blythe City of Indio Coachella Valley Associated Governments Total loans receivable $ 1,398,208 3,985,967 28,189,230 $ 33,573,405 Additionally, the Service Authority for Freeway Emergencies Special Revenue Fund advanced $300,000 to the Freeway Service Patrol Special Revenue Fund on a short-term basis for cash flow purposes. This advance will be repaid during 2013 upon receipt of amounts due from the State. Note 4. Capital Assets Capital assets activity for the year ended June 30, 2012 was as follows: Governmental activities Capital assets not being depreciated: Land and land improvements Construction in progress Rail operating easements Total capital assets not being depreciated Capital assets being depreciated: Rail stations Office improvements Office furniture, equipment and vehicles Total capital assets being depreciated Less accumulated depreciation for: Rail stations Office improvements Office furniture, equipment and vehicles Total accumulated depreciation Total capital assets being depreciated, net Governmental activities capital assets, net Retirements/ Balance Additions/ Transfers/ Balance July 1, 2011 Transfers Deletions June 30, 2012 $154,926,116 $32,016,918 $ (76,480) 103,509,813 29,917,298 (1,303,646) 39,484,143 — — 297,920,072 61,934,216 (1,380,126) 98,541,887 167,287 — 72,782 — — 1,492,178 34,644 — 100,106,847 201,931 — $186,866,554 132,123,465 39,484,143 358,474,162 98,709,174 72,782 1,526,822 100,308,778 (29,719,356) (3,357,225) — (49,284) (10,114) — (925,320) (140,568) — (30,693,960) (3,507,907) — 69,412,887 (3,305,976) — $367,332,959 $ 58,628,240 $ (1,380,126) (33,076,581) (59,398) (1,065,888) (34,201,867) 66,106, 911 $424,581,073 29 Riverside County Transportation Commission Notes to Financial Statements June 30, 2012 Note 4. Capital Assets, Continued Depreciation expense was charged to functions/programs of the Commission's govemmental activities during the year ended June 30, 2012 as follows: General government Commuter rail Commuter assistance Planning and programming Total depreciation expense Note 5. Interfund Transactions $ 99,209 3,362,112 35,692 10,894 $ 3,507,907 Due from/to other funds: The composition of balances related to due from other funds and due to other funds at June 30, 2012 is as follows: Receivable Fund Payable Fund Amount General fund Nonmajor Governmental funds $ 17,146 General fund General fund General fund General fund General fund General fund Measure A Western County Special Revenue fund Measure A Coachella Valley Special Revenue fund Commercial Paper Capital Projects fund Commercial Paper Capital Projects fund Sales Tax Bonds Capital Projects fund Total due from/to other funds Local Transportation Fund 187,555 Special Revenue fund Nonmajor Governmental funds Transportation Uniform Mitigation Fee Special Revenue fund Transportation Uniform Mitigation Fee Special Revenue fund Measure A Western County Special Revenue fund Measure A Coachella Valley Special Revenue fund Local Transportation Fund Special Revenue fund Debt Service fund Measure A Coachella Valley Special Revenue fund Nonmajor Governmental funds Measure A Coachella Valley Special Revenue fund Explanation Fringe benefits allocation Allocation for grade separation costs 296,596 Administrative cost allocation 227,024 Administrative cost allocation 15,673 Fringe benefits allocation 289,035 144 20,001 185,100 437,630 39,368 4,976 $ 1,720,248 Fringe benefits allocation Fringe benefits allocation Allocation for commuter rail capital costs Advance loan payment adjustment Advance loan payment adjustment Advance loan payment adjustment Advance loan payment adjustment 30 Riverside County Transportation Commission Notes to Financial Statements June 30, 2012 Note 5. Interfund Transactions, Continued Interfund transfers: During 2012, interfund transfers were as follows: Transfers Out Transfers In Amount Explanation General fund Measure A Western County Special Revenue fund Measure A Western County Special Revenue fund Measure A Western County Special Revenue fund Measure A Western County Special Revenue fund Transportation Uniform Mitigation Fee Special Revenue fund Local Transportation Fund Local Transportation Fund Commercial Paper Capital Projects fund Sales Tax Bonds Capital Projects fund Sales Tax Bonds Capital Projects fund Debt Service fund Debt Service fund Measure A Western County Special Revenue fund Transportation Uniform Mitigation Fee Special Revenue fund Debt Service fund General fund Commercial Paper Capital Projects fund General fund General fund Measure A Western County Special Revenue fund Debt Service fund Measure A Western County Special Revenue fund Debt Service fund Sales Tax Bonds Capital Projects Fund Measure A Coachella Valley Special Revenue fund $ 551,991 Right of way residual funds 3,701,152 Highway project costs 30,846,896 Debt service funding related to highways and economic development projects for Western County 10,219,524 3,803 227,024 Allocation for commuter rail costs Interest payment Administrative cost allocation 14,890,457 Allocation for administration, planning and programming, commuter rail operating and station maintenance, and grade separation costs 20,000 Allocation for commuter rail capital costs 4,139,678 Debt service related to loan agreements for Coachella Valley and Palo Verde Valley jurisdictions 38,793,305 29,158 19,173,483 Highway project costs Interest earnings Release of debt service reserve for project purposes and reimbursement for prior year debt service payment 284,101 Transfer of remaining debt service reserve for project costs 31 Riverside County Transportation Commission Notes to Financial Statements June 30, 2012 Note 5. Interfund Transactions, Continued Transfers Out Transfers In Amount Explanation Nonmajor Governmental funds Nonmajor Governmental funds General fund Nonmajor Governmental funds 296,595 800,000 Administrative cost allocation Call box program augmentation of freeway service patrol operations Total transfers $123,977,167 Note 6. Long-term Obligations and Subsequent Events The following is a summary of the changes in long-term obligations for the year ended June 30, 2012: Bonds payable: 2009 Bonds 2010 Bonds Total bonds payable Less: Bond discounts Total bonds payable, net Commercial paper notes Capital lease Compensated absences Total long-term obligations Balance July 1, 2011 Additions Reductions Balance June 30, 2012 Due Within One Year $ 174,700,000 150,000,000 324,700,000 (1,162,926) 323,537,074 54,874 452,599 $ 324,044,547 $ (6,500,000) — (6,500,000) 101,037 (6,398,963) 40,000,000 (40,000,000) (23,931) 281,625 (205,275) $ 40,281,625 $ (46,628,169) 168,200,000 150,000,000 318,200,000 (1,061,889) 317,138,111 30,943 528,949 $ 317,698,003 $ 6,800,000 6,800,000 (97,397) 6,702,603 24,654 308,458 $ 7,035,715 The Commission has pledged a portion of future sales tax revenues through maturities of the bonds to repay $168,200,000 and $150,000,000 in sales tax revenue bonds payable issued in October 2009 and November 2010 and outstanding at June 30, 2012. The bonds and commercial paper notes are payable solely from the 2009 Measure A sales tax revenues. Annual principal and interest payments on the bonds and notes are expected to require less than 16% of 2009 Measure A revenues. For the current year, interest paid on the bonds and commercial paper notes was $15,003,582 and $3,803, respectively. Cash subsidies of $2,985,693 related to the bonds were received from the United States Treasury during the current year and were recorded as intergovernmental revenues. Toll revenue bonds payable: In July 2010, the Commission authorized the issuance and sale of not to exceed $900 million of toll revenue bonds related to the SR-91 Corridor Improvement Project. No toll revenue bonds were issued as of June 30, 2012. Sales tax revenue bonds payable: Under the provisions of the 2009 Measure A, as amended by Measure K approved by the voters in November 2010, the Commission has the authority to issue bonds subject to a bond debt limitation of $975,000,000. The following is a summary of bonds issued and secured by 2009 Measure A revenues that are outstanding at June 30, 2012: 32 Riverside County Transportation Commission Notes to Financial Statements June 30, 2012 Note 6. Long-term Obligations and Subsequent Events, Continued 2009 Sales Tax Revenue Bonds (Limited Tax Bonds), Series A, B, and C: In October 2009, the Commission issued sales tax revenue bonds consisting of the $85,000,000 Series A, $65,000,000 Series B, and $35,000,000 Series C, for a total issuance of $185,000,000 (2009 Bonds). A portion of the 2009 Bonds was used to current refund all, or $126,395,000, of the 2008 Sales Tax Revenue Bonds (2008 Bonds) and retire $53,716,000 of the outstanding commercial paper notes with the remaining proceeds used to fund a portion of the debt service reserve and pay costs of issuance for the 2009 Bonds. The 2009 Bonds mature in annual installments ranging from $4,000,000 to $13,700,000 on various dates through June 1, 2029 with variable interest rates set in connection with remarketing efforts on a weekly basis. The 2009 Bonds are integrated with the interest rate swaps that became effective in October 2009, thereby creating synthetic fixed rate debt. The 2009 Bonds are subject to purchase on the demand of the holder at a price equal to principal plus accrued interest on seven days' notice and delivery to the Commission's applicable remarketing agent. Barclays Capital Inc., E.J. De La Rosa & Co., Inc., and Backstrom McCarley Berry & Co., LLC are the remarketing agents for the 2009 Bonds Series A, B, and C, respectively. The remarketing agent is required to use its best efforts to sell the repurchased bonds at a price equal to 100% of the principal amount by adjusting the interest rate. The 2009 Bonds are secured by Standby Bond Purchase Agreements (SBPAs), as amended in July 2011, with JPMorgan Chase Bank (JPMorgan) which expire in September 2014. Under the SBPAs, if the 2009 Bonds are not successfully remarketed or repaid according to their terms or if the existing SBPAs are not renewed and the Commission does not replace the SBPAs or otherwise refinance the 2009 Bonds, JPMorgan is required to purchase the 2009 Bonds. Any of the 2009 Bonds purchased by JPMorgan constitute bank bonds that bear interest at the bank rate, which may not exceed the maximum rate of 18%. If the Commission does not reimburse JPMorgan within 180 days following JPMorgan's purchase of any 2009 Bonds or the expiration of the SBPAs, the Commission would be required to redeem the bank bonds over a period of five years. The Commission is required to pay to JPMorgan an annual commitment fee for the SBPAs of 0.79% of the outstanding principal amount of the 2009 Bonds plus 34 days of interest at an interest rate of 12%. Additionally the Commission is required to pay the remarketing agents an annual fee of 0.10% of the outstanding principal amount of the bonds. The required reserve amount of $14,213,201 was released in its entirety for project purposes in October 2011 upon the effective date of the amendment of the SBPAs. $ 168,200,000 In accordance with the bond maturity schedule and assuming the bonds are remarketed, annual debt service requirements to maturity for the 2009 Bonds payable, based on the rates of the interest rate swaps and the costs of liquidity and the renewal or replacement of the SBPAs, throughout the term of the bonds are as follows: Year Ending June 30 2013 2014 2015 2016 2017 2018-2022 2023-2027 2028-2029 Principal Interest Total $ 6,800,000 $ 7,100,000 7,400,000 7,800,000 8,100,000 46,400,000 57,800,000 26,800,000 $ 168,200,000 $ 7,194,368 6,905,762 6,604,707 6,304,887 5,960,107 24,321,800 13,551,556 1,838,879 72,682,066 $ 13,994,368 14,005,762 14,004,707 14,104,887 14,060,107 70,721,800 71,351,556 28,638,879 $ 240,882,066 33 Riverside County Transportation Commission Notes to Financial Statements June 30, 2012 Note 6. Long-term Obligations and Subsequent Events, Continued If the SBPAs with JPMorgan are not renewed or replaced upon expiration in September 2014 and the Commission does not otherwise refinance the 2009 Bonds, the annual debt service requirements for the succeeding fiscal years based on an assumed interest of 8.50% are as follows: Year Ending June 30 2015 2016 2017 2018 2019 2020 Principal Interest Total $ 15,430,000 30,860,000 30,860,000 30,860,000 30,860,000 15,430,000 $ 8,476,566 10,747,524 8,095,677 5,472,577 2,849,477 441,974 $ 23,906,566 41,607,524 38,955,677 36,332,577 33, 709,477 15,871,974 $ 154,300,000 $ 36,083,795 $ 190,383,795 Although there can be no assurance, the Commission believes it is highly unlikely that the SBPAs will not be renewed or replaced and that the 2009 Bonds, in that event, would not be refinanced. 2010 Sales Tax Revenue Bonds (Limited Tax Bonds), Series A (Tax-exempt) and Series B (Taxable Build America Bonds): In November 2010, the Commission issued sales tax revenue bonds consisting of the $37,630,000 Series A and $112,370,000 Series B, for a total issuance of $150,000,000 (2010 Bonds). For the Series B Build America Bonds (BABs), $44,800,000 was designated as recovery zone economic development bonds (RZEDBs). A portion of the 2010 Bonds was used to retire $103,284,000 of the outstanding commercial paper notes with the remaining proceeds used to fund 2009 Measure A Western County and Coachella Valley capital projects and pay costs of issuance for the 2010 Bonds. The 2010 Bonds Series A mature in annual installments ranging from $12,105,000 to $12,815,000 on various dates from June 1, 2030 through June 1, 2032 at an interest rate.of 5.00%, and the 2010 Bonds Series B mature in annual installments ranging from $530,000 to $17,980,000 on various dates from June 1, 2032 to June 1, 2039 at an interest rate of 6.807%. The Commission expects to receive a cash subsidy from the United States Treasury equal to 35% of the interest payable on the BABs or 45% of the interest payable on the Series B bonds additionally designated as RZEDBs. $ 150,000,000 In accordance with the bond maturity schedule, annual debt service requirements to maturity for the 2010 Bonds payable throughout the term of the bonds are as follows: Year Ending June 30 2013 2014 2015 2016 2017 2018-2022 2023-2027 2028-2032 2033-2037 2038-2039 Principal $ — $ 38,160,000 76,530,000 35,310,000 $ 150,000,000 Interest Total 9,530,500 $ 9,530,500 9,530,500 9,530,500 9,530,500 9,530,500 9,530,500 9,530,500 9,530,500 9,530,500 47,652,600 47,652,600 47,652,600 47,652,600 45,806,600 83,966,600 28, 096, 900 104., 626, 900 3,627,500 38,937,500 220,488,700 $ 370,488,700 Subsidy $ (2,982,100) (2,982,100) (2,982,100) (2,982,100) (2,982,100) (14,910,600) (14,910,600) (14,910,600) (11,358,700) (1,632,400) $ (72,633,400) Total, net $ 6,548,400 6,548,400 6,548,400 6,548,400 6,548,400 32,742,000 32,742,000 69,056,000 93,268,200 37,305,100 $ 297,855,300 34 Riverside County Transportation Commission Notes to Financial Statements June 30, 2012 Note 6. Long-term Obligations and Subsequent Events, Continued Commercial paper notes payable: In February 2005, the Commission authorized the issuance of tax-exempt commercial paper notes in an amount not to exceed $200,000,000 for the primary purpose of financing right of way and mitigation land acquisition and project development costs of capital projects under the 2009 Measure A. From inception through 2008, the Commission issued commercial paper notes aggregating $110,005,000, which were refinanced in June 2008 by the 2008 Bonds. During 2009 the Commission issued $110,000,000 in commercial paper notes, of which $53,716,000 were retired by the 2009 Bonds. During 2010 and in September 2010, the Commission issued commercial paper notes of $27,000,000 and $20,000,000, respectively. In December 2010 the Commission retired $103,284,000 representing all of the outstanding commercial paper notes with the proceeds of the 2010 Bonds. In February 2012, the Commission issued commercial paper notes of $40,000,000, which were retired in March 2012 with commercial paper proceeds. At June 30, 2012, there were no outstanding commercial paper notes. The source of revenue to repay the commercial paper notes and any subsequent long-term debt refinancing is the 2009 Measure A sales tax. Interest is payable on the respective maturity dates of the commercial paper notes, which is up to 270 days from the date of issuance. The maximum allowable interest rate on the commercial paper notes is 12%. As a requirement for the issuance of the commercial paper notes, the Commission entered into a $190,000,000 irrevocable direct draw letter of credit and reimbursement agreement with Bank of America, N.A. (Bank of America) as credit and liquidity support for the commercial paper notes. In February 2010, the agreement was amended for $121,500,000 and extended through March 2012; the agreement was terminated upon expiration. In April 2012, the Commission entered into two $60,750,000, for an aggregate of $121,500,000, irrevocable direct draw letters of credit and reimbursement agreements with Union Bank, N.A. and The Bank of Tokyo -Mitsubishi UFJ, Ltd., acting through its New York Branch (collectively, the Banks), as credit and liquidity support for the commercial paper notes through October 2014. Funds are drawn under the letters of credit to pay debt service on the commercial paper notes, and the Commission is required to reimburse the Banks for such drawings. Amounts drawn on the letter of credit and not reimbursed within 30 days are not due until five years after the date of such draw. Accordingly, the commercial paper notes are classified as long-term liabilities in the Commission's government -wide financial statements. There were no unreimbursed draws by the Commission on these letters of credit authorization during the year ended June 30, 2012, nor were there any amounts outstanding under these letters of credit agreement at June 30, 2012. The Commission's commercial paper program functions similar to bond anticipation notes for reporting purposes, as the commercial paper notes are issued and retired with long-term debt issuances. Commercial paper notes are classified as long-term debt as long as the Commission's letter of credit facility extends at least one year past its fiscal year end; otherwise, the commercial paper notes are classified as a fund liability. In September 2012, the Commission issued $20,000,000 in commercial paper notes. Capital lease obligation: The Commission has entered into a lease agreement for financing the acquisition of office equipment. This lease agreement qualifies as a capital lease for accounting purposes and, therefore, has been recorded at the present value of its future minimum lease payments. The office equipment book value of $27,330 is recorded as a capital asset in the governmental activities. Total future minimum lease obligations and the net present value of these minimum lease payments as of June 30, 2012 are as follows: Year Ending June 30 Total 2013 $ 25,241 2014 6,321 Total minimum lease payments 31,562 Less amount representing interest (619) Present value of minimum lease payments $ 30,943 35 Riverside County Transportation Commission Notes to Financial Statements June 30, 2012 Note 6. Long-term Obligations and Subsequent Events, Continued Interest rate swaps: As a means to achieve a greater level of interest rate stability, specifically rising interest rates that would negatively impact cash flows, the Commission entered into two forward -starting interest rate swaps in August 2006 for a total notional amount of $185,000,000 whereby it swapped obligations to pay fixed rates for those that pay a floating rate. The swaps are part of a synthetic fixed rate financing with the Commission's 2009 Bonds. The floating rate receipts under the swaps correspond to the floating rate payments on the 2009 Bonds. The fixed rate payment remains for the Commission as its primary interest obligation. The counterparty for the first swap ($100,000,000 notional amount) is Bank of America, and the counterparty for the second swap ($85,000,000 notional amount) is Deutsche Bank AG (Deutsche Bank). Under the swap agreements which became effective on October 1, 2009, the Commission will pay Bank of America and Deutsche Bank (Counterparties) a fixed rate of 3.679% and 3.206%, respectively, for twenty years, the term of the 2009 Bonds; the Counterparties will pay the Commission a floating rate equal to 67% of the one -month London Interbank Offer Rate (LIBOR). The Commission's interest rate swaps are derivative instruments that hedge identified financial risks. If the derivative instrument is determined to be effective in reducing the identified exposure, hedge accounting provides that changes in the fair value of the hedging instrument —in this instance, the interest rate swap —be reported as either deferred inflows or deferred outflows in a government's statement of net position. To evaluate the effectiveness of the swaps, the Synthetic Instrument Method prescribed by the standard was employed. The resulting analysis indicates the swaps are effective as hedging instruments. The fair value or marked -to -market value of the Bank of America and Deutsche Bank swaps as of June 30, 2012 are ($20,601,744) and ($13,810,320), respectively. This is the amount the Commission would owe as of this date should the swap be terminated. The terms and fair values (liabilities) of the outstanding swaps as of June 30, 2012 are as follows: Associated Notional Effective Fixed Rate Variable Rate Fair Value Swap Debt Issue Counterparty Amount Date to be Paid to be Received (Liability) Termination Date 2009 Bonds Bank of America $ 90,900,000 10/01/2009 3.679% 67% of LIBOR $ (20,601,744) 06/01/2029 2009 Bonds Deutsche Bank 77,300,000 10/01/2009 3.206% 67% of LIBOR (13,810,320) 06/01/2029 $ 168,200,000 $ (34,412,064) The fair value (liabilities) of the outstanding swaps at June 30, 2011 was ($19,021,234), resulting in an increase in the liabilities of $15,390,830 during the year ended June 30, 2012. The interest rate swaps are, among other things, subject to credit, interest rate, basis, and termination risk. Credit risk: The following table compares the counterparty credit ratings at June 30, 2012 against their threshold rating for termination: Bank of America Moody's S&P Senior Debt Aa3 A+ Threshold Amount $20,000,000 $20,000,000 Deutsche Bank Moody's S&P Senior Debt Aa3 A+ Threshold Amount $20,000,000 $20,000,000 Under the agreements, a swap termination event may occur if the Counterparties' credit ratings fall to the threshold level and, .after 30 days' notice, collateral in the form of U.S. treasury and certain federal agency securities as required by the agreements is not delivered in favor of the Commission. 36 Riverside County Transportation Commission Notes to Financial Statements June 30, 2012 Note 6. Long-term Obligations and Subsequent Events, Continued Interest rate risk: The Commission is exposed to interest rate risk on its pay fixed, receive variable interest rate swaps. As LIBOR decreases, the District's net payments on the swaps increase. It is expected that this is offset partly by a decrease in payments on the 2009 Bonds. Basis risk: The Commission is exposed to basis risk on the swaps because the variable rate payments received by the Commission are based on an index other than interest rates the Commission pays on hedged variable rate debt. For the year ended June 30, 2012, the Commission's 2009 Bonds, Series A, which are hedged by the Deutsche Bank swap, and 2009 Bonds, Series B and C, which are hedged by the Bank of America swap, had weighted average variable rates of 0.12% and 0.14%, respectively. Over the same period, the weighted average of 67% of one -month LIBOR was 0.16%, an approximate 4 and 2 basis point gain for the Commission related to the Deutsche Bank and Bank of America swaps, respectively. Termination risk: The swaps may be terminated by the Commission or its Counterparties if the other party fails to perform under the terms of the contract or at the Commission's option to terminate the transaction. If, at the time of termination, the swap is in a liability position, the Commission would be obligated to pay the counterparty the liability position. Arbitrage rebate: The Tax Reform Act of 1986 instituted certain arbitrage restrictions with respect to the issuance of tax-exempt bonds and commercial paper notes after August 31, 1986. In general, arbitrage regulations deal with the investment of all tax-exempt bond and commercial paper note proceeds at an interest yield greater than the interest yield paid to bondholders or noteholders. Failure to follow the arbitrage regulations could result in all interest paid to bondholders or noteholders retroactively rendered taxable. In accordance with the arbitrage regulations, if excess earnings were calculated, 90% of the amount calculated would be due to the Internal Revenue Service at the end of each five-year period. The remaining 10% would be recorded as a liability and paid after all bonds had been redeemed. During the current year, the Commission performed calculations of excess investment earnings on all bond and commercial paper financings. There was no arbitrage liability at June 30, 2012. Note 7. Net Position and Fund Balances Net position: Net investment in capital assets, as reported on the government -wide statement of net position, represents capital assets of $424,581,073.The related debt of $97,303,571 includes the portion of the sales tax revenues bonds that were used for the development of the tolled express lane capital assets. Additionally, the government -wide statement of net position reports $572,183,941 of restricted —net position, of which $571,355,592 is restricted by enabling legislation. As of June 30, 2012, the beginning net position, as previously reported, was restated due to implementation of GASB Statement No. 65, Items Previously Reported as Assets and Liabilities. As a result, the Commission wrote off its unamortized issuance costs as of June 30, 2011. Statement No. 65 clarifies the appropriate reporting of deferred outflows of resources to ensure consistency in financial reporting. Net position, as originally stated, Net position, as restated, June 30, 2011 Change June 30, 2011 $635,864,022 ($2,053,676) $633,810,346 37 Riverside County Transportation Commission Notes to Financial Statements June 30, 2012 Note 7. Net Position and Fund Balances, Continued Fund balances Measure A: Measure A sales tax revenues are allocated to the three defined geographic areas of Riverside County, consisting of Western County, Coachella Valley, and Palo Verde Valley in proportion to the funds generated within those areas. Revenues must then be allocated to the programs of the geographic areas according to percentages as defined by Measure A and are legally restricted for applicable program expenditures. Bond and commercial paper note proceeds are allocated to the geographic areas based on the estimated uses. Accordingly, the related fund balances are classified as follows: Highways: Funds are to be used for project costs including engineering, right of way acquisitions, and construction of the Western County highways and Coachella Valley highways and regional arterials. Funds for new corridors are to be used for environmental clearance, right of way acquisition, and construction of four new Western County transportation corridors identified through CETAP. In order to attract commercial and industrial development and jobs in the Western County, funds are expended to create an infrastructure improvement bank to improve and construct interchanges, provide public transit linkages or stations, and make other improvements to the transportation system. Funds are also provided to support bond financing costs. These program funds are intended to supplement existing federal, state, and local resources. Coachella Valley highway and regional arterial funds are matched by TUMF revenues generated in the Coachella Valley. Accordingly, funds for highways, Coachella Valley regional arterials, new corridors, economic development, and bond financing are reflected as restricted for these specific purposes as stipulated by the 1989 Measure A and 2009 Measure A. Commuter rail: Commuter rail projects anticipate the use of existing rail lines, and 1989 Measure A funds are restricted for costs related to planning, capital improvements, right of way purchase, and/or use rights agreements. Funds for rail operations and to match federal funds for capital are restricted as stipulated by the 2009 Measure A Western County public transit program. Regional arterials: Funds for regional arterials are used to implement the planned Western County regional arterial system, as defined by WRCOG. Local streets and roads: Funds to be expended by local jurisdictions for the construction, repair, and maintenance of local streets and roads are reflected as restricted as stipulated by Measure A. The County and local cities are required to supplement those expenditures with other previously dedicated revenue sources to maintain road improvements. Monies are disbursed to the jurisdictions which comply with the requirements to maintain the same level of funding for streets and roads as existed prior to the passage of Measure A and participate in TUMF (as applicable in the Western County and Coachella Valley areas) and the Multiple Species Habitat Conservation Plan (MSHCP) in Western County and which annually submit a five-year capital improvement plan. Commuter assistance and transit: Funds for public transit are used to promote and subsidize commuter assistance programs such as ridesharing and telecommuting and specialized transportation to guarantee reduced transit fares, expand existing transit services, and implement new transit services for seniors and persons with disabilities. These funds are restricted as stipulated by the 1989 Measure A and 2009 Measure A. Funds for intercity bus services in Western County and bus replacement and more frequent service in the Coachella Valley are restricted as stipulated by the 2009 Measure A. Debt service: Certain bond proceeds that have been used to make required sinking fund payments in the Debt Service fund as required by the bond agreements are classified as restricted. Amounts held by the trustee equal to the maximum annual debt service are recorded in the Debt Service fund as restricted. 38 Riverside County Transportation Commission Notes to Financial Statements June 30, 2012 Note 7. Net Position and Fund Balances, Continued Transportation Development Act: Restricted fund balance for the Local Transportation Fund represents the apportionments related to transit programs by geographic area, bicycle and pedestrian facilities, and planning and programming services and unapportioned revenues. Restricted fund balance for the State Transit Assistance represents the apportionments for transit by geographic area. The TDA restrictions at June 30, 2012 are as follows: Local Transportation Fund State Transit Assistance Total Bicycle and pedestrian facilities $ 3,296,219 Planning and programming, allocated and unclaimed $ 49,637 $ — $ 3,296,219 $ — $ 49,637 Transit and specialized transportation Western County: Bus transit: City of Banning $ — City of Beaumont — City of Corona — City of Riverside — Riverside Transit Agency 11,528,416 Apportioned and unallocated 39,178,318 Commuter rail: Commission 3,639,007 Apportioned and unallocated 14,932,072 $ 596,119 725,983 1,067,668 485,750 12,335,639 15,614,368 $ 596,119 725,983 1,067,668 485,750 23,864,055 54,792,686 100,000 3,739,007 6,089,841 21,021,913 Total Western County 69,277,813 Coachella Valley: SunLine Transit Agency Apportioned and unallocated Total Coachella Valley Palo Verde Valley: Palo Verde Valley Transit Agency Apportioned and unallocated for transit and local streets and roads Total Palo Verde Valley Unapportioned funds Total transit and specialized transportation 37,015,368 106,293,181 836,298 5,598,721 3,353,831 3,122, 364 4,190,129 8,721,085 6,435,019 6,476,195 12,911,214 84,784 733,172 137,158 221,942 225,812 958,984 817,956 362,970 1,180,926 12,212,325 12,212,325 $ 88,743,113 $ 43,854,533 $ 132,597,646 Commuter rail: Restricted fund balance in the General fund represents TDA monies to be used for commuter rail operations and capital. Planning and programming: Restricted fund balance in the General fund represents TDA monies to be used for planning and programming services. Transportation Uniform Mitigation Fee: TUMF revenues to be received by the Commission are to be used for new CETAP corridors and the regional arterial system in Western County and are restricted as follows: CETAP: Funds for the development of new transportation corridors are used to provide congestion relief and mobility within the County and between the County and its neighboring Orange and San Bernardino counties. Funds will be matched by revenues of $370 million generated from the 2009 Measure A. 39 Riverside County Transportation Commission Notes to Financial Statements June 30, 2012 Note 7. Net Position and Fund Balances, Continued Regional arterials: Funds for regional arterials are used to implement the planned Western County regional arterial system. Funds will be matched by revenues of $300 million generated from the 2009 Measure A. Prepaid amounts: Prepaid amounts are reported as nonspendable fund balance as they are in nonspendable form. Motorist assistance: Funds in the Service Authority for Freeway Emergencies and Freeway Service Patrol Special Revenue funds, which are reported as nonmajor governmental funds, of $6,126,940 and $828,349, respectively, to assist motorists on County roads are restricted as stipulated by the State. General government: Funds allocated by Measure A, TUMF, LTF, and motorist assistance programs to the General Fund have been assigned by the Commission for general government administration. Note 8. Commitments and Contingencies Operating lease: The Commission has entered into an operating lease agreement for office facilities. The term of the lease is for a period of ten years expiring on October 30, 2012 and may be extended for two additional five-year terms. Rental expenditures for the fiscal year ended June 30, 2012 were $357,545. Real property and project agreements: The Commission has entered into other agreements in the ordinary course of business with companies and other governmental agencies for the acquisition of real property as well as the engineering and construction of certain highway and commuter rail projects. These agreements, which are significant, are funded with available and future revenues and debt proceeds. Under the 2009 Measure A, the Commission is required to provide $153,000,000 of Measure A funding under the Western County MSHCP. Through the current year, the Commission has fulfilled approximately $129,000,000 of the funding requirement. In March 2012, the Commission authorized a $24,000,000 commitment to the Western Riverside County Regional Conservation Authority (RCA) to provide funding for its remaining obligation to the MSHCP for its covered activities. Under the terms of the agreement, the commitment will be paid over the next eight years at $3,000,000 per year through December 2019. However, if, within the first two years of the agreement, the RCA has received a federal loan guarantee related to the MSHCP or its revenues have returned to 2005 levels, the Commission may modify its commitment. Project funding advances: In January 2006, the Commission authorized the TUMF Special Revenue fund to advance $3,114,600 to the State to replace state and federal funding for the State Route (SR) 91/Green River interchange project. During the year ended June 30, 2012, there were no additional advances to the State from the TUMF Special Revenue fund for the SR-91/Green River interchange project. In December 2004, the Commission authorized the TUMF Special Revenue fund to advance $13,046,000 to the State to replace state and federal funding for the SR-60 widening project from Interstate (I) 15 to Valley Way. The final agreement with the State resulted in a reduction of the Commission's commitment to $8,881,000. During the year ended June 30, 2012, there were no additional advances to the State from the TUMF Special Revenue fund for the SR-60 widening project. 40 Riverside County Transportation Commission Notes to Financial Statements June 30, 2012 Note 8. Commitments and Contingencies, Continued Cumulative advances as of June 30, 2012 for the SR-91/Green River interchange and SR-60 widening projects were $3,114,600 and $8,640,939, respectively. The advances are to be repaid in the form of a commitment of future State funding on TUMF projects; in various actions since 2006, the Commission approved programming the County's share of State funding to the SR-91Nan Buren interchange, a TUMF project, and the future State funding commitment to the 60/215 East Junction high occupancy vehicle lane connectors project. The California Transportation Commission (CTC) allocated the funds for the SR-91Nan Buren interchange and the 60/215 East Junction projects in October 2009 and May 2010, respectively. Litigation: Certain claims involving disputed construction costs have arisen in the ordinary course of business. Additionally, the Commission is a defendant in lawsuits. Although the outcome of these matters is not presently determinable, management does not expect that the resolution of these matters will have a material adverse impact on the financial condition of the Commission. Note 9. Joint Agreements Joint venture: The Commission is one of five members of the SCRRA, an independent joint powers authority created in June 1992. The SCRRA's board consists of one member from the Ventura County Transportation Commission; two each from the Orange County Transportation Authority (OCTA), the San Bernardino Associated Governments, and the Commission; and four members from the Los Angeles County Metropolitan Transportation Authority. The SCRRA is responsible for implementing and operating a regional commuter rail system (Metrolink) in five southern California counties. As a member of SCRRA, the Commission makes capital and operating contributions for its pro rata share of rail lines servicing the County. The Commission expended $16,805,333 during 2012 for its share of Metrolink capital and operating costs. As of June 30, 2012, cumulative capital contributions were $42,305,908.Other funds for rail service are contributed to the SCRRA by the State from state rail bonds on behalf of the Commission. Separate financial statements are prepared by and available from the SCRRA, which is located at One Gateway Plaza,12th Floor, Los Angeles, California 90012. Cooperative agreement: In May 2006 the Commission entered into a cooperative agreement, Riverside Orange Corridor Authority, with OCTA and the Transportation Corridor Agencies to jointly exercise the common powers of the parties to manage geotechnical studies regarding the Riverside Orange Corridor. The Commission is the recipient and administering entity of federal and state funds as may be necessary to accomplish this work, and the three agencies will share in meeting the local agency matching requirements. As of June 30, 2012, the Commission was not required to make any contributions. Note 10. Employees' Pension Plans and Subsequent Events Public Employees' Retirement System: The Commission contracts with the State of California Public Employees' Retirement System (PERS) to provide its employees retirement as well as death and retirement disability benefits, which are paid by the PERS under a cost sharing multiple -employer plan. Copies of the PERS' annual financial report may be obtained from its executive office located at 400 P Street, Sacramento, California 95814, or by visiting the PERS website at www.calpers.ca.gov. Through the June 30, 2003 valuation, the PERS plan was an agent multiple -employer retirement plan. Effective July 1, 2003, due to the Commission having less than 100 active members, the Commission's PERS plan was converted from an agent multiple -employer plan (former plan) to a cost sharing multiple -employer plan. The former plan is an aggregation of single employer plans, where separate accounts are maintained for each employer and contributions by the employer benefit only the employees of the employer. Under this plan, separate actuarial valuations are performed for each employer, and the results are attributed to and accounted for by the employer. The cost sharing 41 Riverside County Transportation Commission Notes to Financial Statements June 30, 2012 Note 10. Employees' Pension Plans and Subsequent Events, Continued multiple -employer plan is a pooling arrangement whereby risks, rewards, and benefit costs are shared and not attributed individually to any single employer. Periodic employer pension expense can be significantly different between the plan types. The change to the pooling arrangement was initially effective for the Commission's required contribution rate during the fiscal year ended June 30, 2006. At the time of joining the risk pool under the cost -sharing multiple -employer plan, a side fund (the amount that the Commission would owe PERS if it exited the plan) was created to account for the difference between the funded status of the pool and the funded status of the Commission's plan. As of the June 30, 2010 valuation (most current valuation available), the estimated amount of the side fund liability was $1,629,459. All permanent Commission employees are eligible to participate in PERS. Employees attaining the age of 55 with five years of credited California service (service) are eligible for normal retirement and are entitled to a monthly benefit of 2.7% of their final compensation for each year of service. Final compensation is defined as the highest annual salary earned. Retirement may begin at age 50 with a reduced benefit rate. The plan also credits employees for unused sick leave. Upon separation from the plan prior to retirement, members' accumulated contributions are refundable with interest credited through the date of separation. The Commission pays the employees' required contribution of 8% of regular earnings. New employees hired after November 28, 2002 are responsible for 1% of the 8% required contribution. The Commission is required to contribute the remaining amounts necessary to fund the benefits of its members, using the actuarially determined rate, which was 22.368% for the fiscal year ended June 30, 2012. Three-year trend information for PERS: Fiscal Year Annual Required Percentage of Net Pension Ended June 30 Contribution (ARC) ARC Contributed Obligation 2012 $ 994,806 100% $ — 2011 1,016,336 100% — 2010 807,367 100% — In September 2012, the Governor signed Assembly Bill 340, the Califomia Public Employees' Pension Reform Act of 2013 (PEPRA), which impacts most California retirement systems, including PERS effective January 1, 2013. The pension reform measure include equal sharing of the annual normal cost of benefits, required reduced retirement formulas and increased retirement ages, limitations on pensionable compensation, anti -spiking provisions, limitations on post -retirement employment, forfeiture of pension benefits upon the conviction of certain felonies, equal health benefits, and prohibition of pension funding holidays. While some of these pension reform measures will apply to all employees, most will only apply to new members. The Commission has not taken any actions related to the implementation of PEPRA or determined the effects, if any, of its implementation. 401(a) plan: The Commission offers its employees a 401(a) defined contribution plan referred to as the Money Purchase Plan & Trust (Plan), which covers all permanent full-time employees. Employees are fully vested in the Plan after five years. The Plan, which is administered by the International City/County Management Association (ICMA), requires the Commission to make a contribution of 7.5% of the employees' earnings for the Plan year. Fiduciary responsibility and reporting of the Plan assets rests with ICMA. The Commission has the authority to amend the contribution requirements. Total payroll for covered employees for the current year was $3,627,418. The Commission's contributions to the Plan were $270,578 for the year ended June 30, 2012. 42 Riverside County Transportation Commission Notes to Financial Statements June 30, 2012 Note 11.Other Postemployment Benefits (OPEB) Plan information: Per Resolution of the Board, the Commission provides postretirement health benefits for eligible retirees and their dependents at retirement. For employees hired on or after January 1, 2007, retirees must have a minimum of 10 years of PERS service and no less than five years of Commission service in order to receive postretirement health benefits in accordance with PERS as per Government Code Section 22893. For employees hired prior to January 1, 2007, retirees are not required to meet the eligibility criteria and may receive postretirement health benefits at the monthly health benefit rate paid for active employees, which is currently at $600. The Commission's contributions toward premiums for retiree health insurance are coordinated with Medicare and other benefits provided by federal and state law, when available, to the extent it reduces the cost of insurance premiums. In June 2007 prior to the adoption of GASB Statement No. 45, Accounting and Financial Reporting by Employers for Postemployment Benefits Other Than Pensions, the Commission adopted a resolution for an election of the Commission to prefund postretirement health benefits through the California Employers' Retiree Benefit Trust (CERBT), an agent multiple -employer defined benefit health care plan administered by PERS. The System accepted the Commission's application to participate in the CERBT in September 2007. Copies of the CERBT Prefunding Plan annual financial report may be obtained from its executive office or its website. Plan funding policy: The contribution requirements of plan members are established and may be amended by the Commission. Currently, OPEB contributions are not required from plan members. The Commission has adopted a policy to fund 100% of the future ARC. The ARC represents a level of funding that, if paid on an ongoing basis, is projected to cover the annual normal cost and the amortization of unfunded actuarial accrued liabilities (or funding excess) over a 20-year period. The Commission is required to contribute the amounts necessary to fund the benefits of its members, using the actuarially determined rate, which was 10.4% for the fiscal year ended June 30, 2012. Annual OPEB cost: For 2012, the Commission's OPEB cost of $397,000 was equal to the ARC. The Commission's annual OPEB cost, the percentage of annual OPEB cost contributed to the plan, and the net OPEB obligation for 2012 and the preceding two years were as follows: Percentage of Fiscal Year OPEB Annual Required OPEB ARC Net OPEB Ended June 30 Contribution (ARC) Contributed Obligation 2012 $ 397,000 100% $ — 2011 249,000 100% 2010 241,000 100% Funded status and funding progress: The funded status of the plan as of June 30, 2012, based on the June 30, 2011 actuarial valuation (most current valuation available), was as follows: Actuarial accrued liability (AAL) $ 3,543,000 Actuarial value of plan assets 2,340,000 Unfunded actuarial accrued liability (UAAL) $ 1,203,000 Funded ratio (actuarial value of plan assets/AAL) 66.0% Covered payroll (active plan members) $ 3,627,418 UAAL as a percentage of covered payroll 33.2% 43 Riverside County Transportation Commission Notes to Financial Statements June 30, 2012 Note 11.Other Postemployment Benefits (OPEB), Continued Actuarial valuations: Actuarial valuations of an ongoing plan involve estimates of the value of the reported amounts and assumptions about the probability of occurrence of events far into the future. Examples include assumptions about future employment, mortality, and the healthcare cost trend. Amounts determined regarding the funded status of the plan and the ARC of the Commission are subject to continual revision, as actual results are compared with past expectations and new estimates are made about the future. Projections of benefits for financial reporting purposes are based on the substantive plan (the plan as understood by the Commission and plan members) and include the types of benefits provided at the time of each valuation and the historical pattern of sharing of benefit costs between the Commission and plan members to that point. The actuarial methods and assumptions used include techniques that are designed to reduce short-term volatility in the AAL and the actuarial value of assets, consistent with the long-term perspective of the calculations. In the June 30, 2011 actuarial valuation, the entry age normal actuarial cost method was used. The actuarial assumptions included a 6.75% investment rate of return and a 3% inflation rate assumption. The annual healthcare cost trend rate for non -Medicare eligible premiums were 9.5%; Medicare eligible premiums were 10.0%. The trend rate was reduced by decrements to an ultimate rate of 5.0% after ten years. A 3.25% annual rate of increase in future salaries is also assumed in the valuation. The Commission's UAAL will be amortized as a level percentage of projected covered payroll on a closed basis over a 20-year period. Note 12. Measure A Conformance Requirements Measure A requires that the sales taxes collected may only be used for transportation purposes including administration and the construction, capital acquisition, maintenance, and operation of streets, roads, highways including state highways, and public transit systems and for related purposes. These purposes include expenditures for planning, environmental reviews, engineering and design costs, and related right of way acquisition. Note 13. Pronouncements Issued, Not Yet Effective The GASB pronouncements issued prior to June 30, 2012 that have an effective date that may impact future financial presentations. Management has not currently determined what, if any, impact implementation of the following statements may have on the financial statements of the Commission. • GASB Statement No. 60, Accounting and Financial Reporting for Service Concession Arrangements, which is effective for periods beginning after December 15, 2011; • GASB Statement No. 61, The Financial Reporting Entity: Omnibus, an amendment of GASB Statements No. 14 and No. 34, which is effective for periods beginning after June 15, 2012; • GASB Statement No. 62, Codification of Accounting and Financial Reporting Guidance Contained in Pre - November 30, 1989 FASB and AICPA Pronouncements, which is effective for periods beginning after December 15, 2011; • GASB Statement No. 66, Technical Correction-2012—an amendment of GASB Statements No. 10 and No. 62, which is effective for periods beginning after December 15, 2012; and • GASB Statement No. 68, Accounting and Financial Reporting for Pensions, which is effective for periods beginning after June 15, 2014. 44 Required Supplementary Information This page intentionally left blank. 46 Riverside County Transportation Commission Schedule of Revenues, Expenditures and Changes in Fund Balance Budget and Actual - General Fund Year Ended June 30, 2012 General Original Final Budget Budget Actual Variance with Final Budget Positive (Negative) Revenues Sales taxes $ 2,700,000 $ 2,700,000 $ 2,700,000 $ Intergovernmental 693,500 693,500 372,574 (320,926) Interest 66,600 66,600 55,207 (11,393) Other 187,200 187,200 47,913 (139,287) Total revenues 3,647,300 3,647,300 3,175,694 (471,606) Expenditures Current: General government 4,952,000 4,821,000 4,188,591 632,409 Commuter rail 21,537,900 21,538,900 20,180,544 1,358,356 Planning and programming 7,012,300 7,428,300 3,378,765 4,049,535 Transit and specialized transportation 317,600 317,600 255,808 61,792 Total programs 33,819,800 34,105,800 28,003,708 6,102,092 Debt service: Principal 25,000 23,931 1,069 Interest - 2,000 1,310 690 Total debt service - 27,000 25,241 1,759 Capital outlay 210,200 110,200 67,481 42,719 Total expenditures 34,030,000 34,243,000 28,096,430 6,146,570 Excess (deficiency) of revenues over (under) expenditures (30,382,700) (30,595,700) (24,920,736) 5,674,964 Other financing sources (uses) Transfers in 30,517,100 30,955,100 25,633,600 (5,321,500) Transfers out (9,200) (9,200) (551,991) (542,791) Total other financing sources (uses) 30,507,900 30,945,900 25,081,609 (5,864,291) Net change in fund balances $ 125,200 $ 350,200 160,873 $ (189,327) Fund balances at beginning of year 13,524,354 Fund balances at end of year $ 13,685,227 See notes to required supplementary information 47 86 696'980'Z6 $ 6LZ'mze OS6'SS6'6Z $ 09L'9L9'6 COOTT[ spl) s (ausze'B l) s 4£l'9S9'E e46'L96'Z eb6'L96'Z (LS0 01660 (006'LL9'Ll) (006'6e6'L1) (60'01.6'41) (006'L[e'LL) (006'6E6'LA 140'6ZZ'£L $ LeL'66Z'EL $ (999'0L) b6S'96E'L1 $ 4Z8'LEZ'00Z $ 800'Z91'01 29'66S'9SZ (008'9Z9'E) $ (008'9ves) s £LE'SSCOI $ 989'481'L (L8L'OLS'E) $ (001'LZE'4) $ SLZ'SSL'L $ (L69'19E'81) (ZL6'91S'SZ) $ (008'EEL'ZE) $ (ZL6'S69'40 9L8'Z09'l (848'86Z'9l) Jea6lo pua le saoueleq pund Rao( 6uluul6aq le saoueleq pund saoueleq purl ul abueyo 1aN BZ l'6LVE 001'0[1'81 (006'619'L) 106'40Z'1 101'68Z (009'OZ6) (OOZ'698'Z) (169'986'66) (6/0'906'5) Z19'08S'6E 00L'S69'ES (sasn) saomos 6woueun JOIN lelol (6Z0'L0 (006'6Z9'1) (006'619'LZ) 008'OZ6 Warm) (OOZ'698'Z) ELE'ZZL'9 (SEE'lLL'64) (899'E69'66) (009'eL9'SE) Ino walsueii Z51'10L'E 000'000.0Z 000.000'0Z 101.68Z 1011,8Z (400'601'00 96Z'S9E'6E OOE'6L6'68 00E'6LE'6e u!sJalsuwl (sasn) saanos 6upueug'KO LOS'984'LZ LOZ'69L'bZ OOL'OOE'E (009'688) 90 L'ZSZ'81 (66L'64S'e) (006'96L'1Z) (006'96E'Sb) ZLVOSS'6 S80'006'9 (L86'609.6 (006'LS4'1) 996'lb l'ZS (819'SS6Z1) (68S'L60'99) (00S'6Z4'98) samllpuedua (Japun) Jano senuanw to (Lnuelogap) ssaox3 8ZL'OL8'S1 ZL0'9ZCZ6 008'966'LS 00VL88'LS 149'669'91 6Z6'09t01 009'098'SZ 009'09L'66 OZ9'10l'L L9b'lLl'bZ L80'eLZ'le 000'686LZ 061 L8L'EP eZL'OLB'SL OSZ'0E4'4l S6 U6'046' l S9L'ZEL 466LSZ191 680'6£0'SOZ 000'9ZZ'61Z samllpuedxe lelol SeZ'Z6l 000'SLZ 000'99Z Awn lellde0 ZL0'9ZCZ4 009'966'LS 00£'L88'LS lL9'66S'S1 6Z6'08Z'01 009'089'SZ 009'09L'66 OZ9'101'L L90.1L C6Z L80'ELZ'l£ 000'686'LZ SLE'4S9'E6 60L'601'191 480'69L'bOZ 000'l96'81Z sweJ6oJdlelol 09L'68 C06 000'0Z9'4S 000'0Z9'69 - 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1,794,000 1,794,000 0.0% 2,396,757 74.91)/0 See notes to required supplementary information 49 Riverside County Transportation Commission Notes to Required Supplementary Information June 30, 2012 Budgetary Data In February of each year, department heads begin the process of compiling budget data for the upcoming fiscal year. Budget numbers along with supporting documentation are provided to the Chief Financial Officer by March 15. That budget data is compiled and presented to the Executive Director for review and approval and is submitted to the Budget and Implementation Committee at its April meeting. After review by the Budget and Implementation Committee, the proposed budget is scheduled for preliminary review and comment as well as public hearing at the Commission's May meeting. The final budget for the new fiscal year is then adopted by motion of the Board of Commissioners (Board) no later than June 15 of the current year. This appropriated budget covers substantially all Commission expenditures by financial responsibility unit [e.g., General fund and Measure A (for each of the three county areas), Local Transportation Fund, and Transportation Uniform Mitigation Fee special revenue funds] by fund. All appropriated amounts are as originally adopted or as amended by the Commission. Unexpended appropriations lapse at year-end. All budgets are adopted on a basis consistent with generally accepted accounting principles. As adopted by the Board, expenditure activities of the funds with adopted budgets are controlled at the budgetary unit, which is the financial responsibility level, for each function (i.e., administration, programs, intergovernmental distributions, and capital outlay). These functions provide the legal level of budgetary control (i.e., the level at which expenditures cannot legally exceed the appropriated amount). Management has the discretion to transfer the budgeted amounts within the financial responsibility unit according to function. Supplemental budget appropriations were necessary during the year. Funding Progress for Postretirement Health Benefits The schedule of funding progress presents multiyear trend information that shows whether the actuarial value of plan assets is increasing or decreasing over time relative to the actuarial accrued liabilities for benefits. The Commission obtains an actuarial valuation on a biennial basis. The most recent actuarial valuation performed was as of June 30, 2011. 50 Other Supplementary Information This page intentionally left blank. 52 Riverside County Transportation Commission Nonmajor Governmental Funds Description Special Revenue Funds Measure A Palo Verde Valley: This fund is used to account for the revenues from sales taxes which are restricted to expenditures for Palo Verde Valley programs and activities. Freeway Service Patrol: This fund is used to record the revenues received from state funds for the purpose of implementing a freeway service patrol for motorists. Service Authority for Freeway Emergencies: This fund is used to record the revenues received from Department of Motor Vehicle user registration fees for the purpose of implementing an emergency call box system for motorists. State Transit Assistance: This fund is used to account for revenues from sales taxes on gasoline restricted for transit projects. 53 Riverside County Transportation Commission Combining Balance Sheet - Nonmajor Governmental Funds June 30, 2012 Special Revenue Service Total Measure A Freeway Authority State Nonmajor Palo Verde Service for Freeway Transit Governmental Valley Patrol Emergencies Assistance Funds Assets Cash and investments $ 556 $ 469,499 $ 5,859,437 $ 40,883,542 $ 47,213,034 Receivables: Accounts 178,165 1,041,680 643,342 3,414,503 5,277,690 Advances - - 300,000 - 300,000 Interest 227 5,579 43,487 49,293 Prepaid expenditures and other assets - 16 114 130 Total assets $ 178,721 $ 1,511,422 $ 6,808,472 $ 44,341;532 $ 52,840,147 Liabilities and fund balances Liabilities: Accounts payable $ 138,797 $ 259,049 $ 191,680 $ 486,999 $ 1,076,525 Advances payable 300,000 - 300,000 Due to other funds 39,368 124,004 189,738 - 353,110 Other liabilities 4 4 Total liabilities 178,165 683,057 381,418 486,999 1,729,639 Fund balances: Nonspendable-prepaid amounts 16 114 130 Restricted for: Local streets and roads 556 - - 556 Motorist assistance 828,349 6,426,940 - 7,255,289 Transit and specialized transportation - 43,854,533 43,854,533 Total fund balances 556 828,365 6,427,054 43,854,533 51,110,508 Total liabilities and fund balances $ 178,721 $ 1,511,422 $ 6,808,472 $ 44,341,532 $ 52,840,147 99 909'0l l' l9 $ ££9'1799'Eti $ 1790'LZti'9 $ 99E'9Z9 $ 999 $ £Z 6'9ZZ'6£ 98£'1788' L l 6Z9'9Ll'ZE 999'6W9 1706'9L9'll (49'ZZ) EL£'L69 999 Z66'0EZ (969'96Z) (969'086) OZ6'£89 (969'960' l) 000'009 096'09 CZ l 1706'9L9' l 6 (9l9'086) 1700'996 (090' 9 [ 0 000'009 (9Z6'Z9b) [Z0'Z9L'9 L9Z'E00'Z O90'99E' l 99l'89ti'Z 669'Z06 L9Z'E00'Z 9bZ'968'£ 6l9'Z06 600'££6'8l L9Z'E00'Z 090'99£' 6 l9V6L9'El b80'917E'Z 996'89ti'Z L£Z'900'Z 6l9'Z06 6l9'Z06 LEL'LOl 906'9[Z £O1'666 L9E'96Z'b LL6'68E't[ $ 9917'L81/El $ 968'90l 069'9Z 8Z9'£6Z'Z 999 £69' 6 69L'Z00'Z $ 6l9'Z06 $ spun] le;ueuwuJanoo JofewuoN le;ol aoue;slssy ;pail a;e;S saloue6Jew3 AeMaald Jo; Alpoy;ny aolnJaS lo.1;ed aolnJaS neMaaJ j AelleA apJaA oled y elnseaw anueneN moods JeeA pue;e saoueleq pund Jead;o 6uluupaq ae saoueleq pun3 saoueleq pun; ul e6ueyo aaN (sasn) seamos 6upueu4 Jayao lelol ;no sielsueJl uw sJa;sueJl :(sasn) seams 6upueu4 Jeulo seinpuedxe (Japun) Jano sanuanaJ;o V31181000 ssaox3 s111e.160Jd le;ol uogepdsuan pezllepads pue alsueJl eouelslsse IsuoloW spec: pue pool :;uaunO sainllpuedx3 Z60Z `0£ aunt pepu3 Jea,!, spun3 le;uawwenoo JofewuoN seouele8 pun3 ul se6ue143 pue'sempuedx3 `senuenaa;o;uawa;e;S 6ululgwoo uolsslwwoo uopepodsueJl Aunoo eplsJanN senuanaJ lelol JaU#O lsaJelul leluewuJenolelul sexel sales senuanaZl 99 £ES'4Se'E4 s 6Z9'8L L'ZE 40L'Z44'ZZ S 406'9a 1008'99L'OL) $ (008'999'00 $ 68E'9ZZ'l 000'8E6 000'8E6 (000'e£6) (000'8E6) 40L'409'LZ 406'SL9'll (008'8Z8'6) (008'999'01) 490'LZ4'9 $ 999'6174'9 $ (l19V) (006'L4Z'L) $ (006'90C'0 $ Z6Z'99 S9£'8Z8 S £L£'L6S $ Z66'o£Z 999 $ 999 00L'9L1 $ 00L'4EL $ 6LE'S£ $ - (6LC'S£) $ 00Z S S84 (91.9'086) (000'186) (000'8E6) (0eL'zEE) 994 (91.9'086) (000'1.86) (000'8E6) OZZ'Ll (000'o9E) 40617ZZ'L 400'896 1006'90 1006'89E) ZLO'98E OZ6'E89 00L'910'L OMEL6 (080'9L0 (00£'£E1) (00£'9Ll) 000'008 000'09L'L 000'09CL (ez6'ZS4) (000'14,8) 1o00'6Ee) 6LE'SE (OOz'sez) (ooz'9£z) (6LE'9E) 004'9EZ E4S'494'LL C491494'L L L9L'040'4 EOL'68 894'096'E $ LSZ'C00'Z 009'L94'61 L9Z'£00'Z 008'L94'6L L9L'6L9'EL 000'6E9'6 COL' L6L 000'ZOL 894'L84'El $ 000'LC9'6 008'9WOZ OZ9'LZL 008'90C'OZ OZ9'LZL 000'6E9'6 4eZ'L64 948'L6 000'Z01 0L8'L 8Z9'£04 S 000'L£S'6 $ 080'88E'L 00C9LCZ OOL'LLCZ SEL'68S 99L'e94'z 0woo's 006'S40'E 080'88C'l OOL'SLCZ OOL'LLl'Z SEL'689 99l'994'Z 006'240'E 006'940'C 490'94E'Z 948'901 OL9'SZ 8Z9'CLZ'Z $ $ 008'868'L 008'84L'L (E99'LOZ) 000'91 000'9L 99Z 008'EZ 008'£Z (Los'!) 000'0L8'L 000'0LL't (1.4E'00Z) (ange6aN) ang!sod la6png leulj yl!m aoueueA !enjoy la6png leulj la6png leul6u0 eouelspsy alels (ange6aN) eng(sod la6png pul j yllm aoueueq 6LS'Z06 6L9'z06 008'L9S 619'Z06 6LS'Z06 009'LN LEZ'900'Z 006'90n 006'90n 6LC'S£ 61.9'Z06 00Z'L99 00Z'408 998 009 009 C69'L 00Z'E 00Z'E (00Z) 00Z 00Z 69L'Z00'Z 000EOZ'Z 00L'EOZ'Z - S - $ - $ 619'9C $ 615'ZO6 $ 000'(98 $ 0001/08 $ lenlog la6png la6png (ange6aN) lenpv leu!j pul6u0 anopod la6png leul3 y1!m eoueueA sepuelbew3 Aemeei j RI loom/ owes la6png 06png leuu !eu!6u0 !oiled °owes AemaaJj ZLOZ'OE aunC pepu3 JeaA spun j enuenau lepeds JOewuoN—lenlov pue la6png seoueleg punj u! sa6uey0 pue samllpuadxj tenuenes to alnpayos uolsslwwo0 uollevodsueul Alunoo eplsuanw (ange6aN) anglsod la6png leulj !Alm eoueuen lenlov laepng 06png leulj pul6u0 Aellen apPA Ned y einsem ieaA to pue le seouepq pun j ieaA to 6upupeq le seouepq pun j saouepq punt ul a6ueyd laN (sasn) somas 6upueug iaylo lelol 1no sialsueil u! sialsue4 (sasn) seams tiupueug Rg10 saml!puedxe (iapun) iano senuenai to (Aoualogep) sseox3 sweitiwd lelol uogeponsue.4 pazgepads pue llsue l eouelslsse lspovm spew pue slaails pool quaun0 samlpuedx3 senueneiplol .1a410 'swap! leluawwanoWeiul mel saIeg senuene Riverside County Transportation Commission Schedule of Revenues, Expenditures and Changes in Fund Balances Budget and Actual —Capital Projects and Debt Service Funds Year Ended June 30, 2012 Capital Projects Funds Commercial Paper Sales Tax Bonds Debt Service Fund Variance with Variance with Variance with Final Budget Final Budget Final Budget Original Final Positive Original Final Positive Original Final Positive Budget Budget Actual (Negative) Budget Budget Actual (Negative) Budget Budget Actual (Negative) Revenues Intergovernmental $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 2,985,693 $ 2,985,693 Interest 156,600 156,600 2,056,240 1,899,640 12,200 12,200 74,283 62,083 181,700 181,700 155,620 (26,080) Other - - - - - - Total revenues 156,600 156,600 2,056,240 1,899,640 12,200 12,200 74,283 62,083 181,700 181,700 3,141,313 2,959,613 Expenditures Current: Highways 6,900,000 6,900,000 6,900,000 Debt service: Principal - 40,000,000 40,000,000 - 6,500,000 6,500,000 6,500,000 Interest 225,000 225,000 3,803 221,197 13,470,000 16,270,000 15,003,582 1,266,418 Total debt service 225,000 40,225,000 40,003,803 221,197 19,970,000 22,770,000 21,503,582 1,266,418 Total expenditures 225,000 40,225,000 40,003,803 221,197 6,900,000 6,900,000 (6,900,000) 19,970,000 22,770,000 21,503,582 1,266,418 Excess (deficiency) of revenues over (under) expenditures (68,400) (40,068,400) (37,947,563) 2,120,837 (6,887,800) (6,887,800) 74,283 6,962,083 (19,788,300) (22,588,300) (18,362,269) 4,226,031 Other financing sources (uses) Debt issuance 38,000,000 38,000,000 40,000,000 2,000,000 - - - - - Transfers in 3,803 3,803 6,442,700 6,442,700 19,173,483 12,730,783 21,717,000 20,957,488 35,015,732 14,058,244 Transfers out (35,843,000) (34,876,000) (4,139,678) 30,736,322 (37,856,000) (38,823,000) (38,822,463) 537 (9,696,800) (22,696,800) (19,457,584) 3,239,216 Total other financing sources (uses) 2,157,000 3,124,000 35,864,125 32,740,125 (31,413,300) (32,380,300) (19,648,980) 12,731,320 12,020,200 (1,739,312) 15,558,148 17,297,460 Net change in fund balances $ 2,088,600 $ (36,944,400) (2,083,438) $ 34,860,962 $ (38,301,100) $ (39,268,100) (19,574,697) $ 19,693,403 $ (7,768,100) $ (24,327,612) (2,804,121) $ 21,523,491 Fund balances at beginning of year 33,227,032 25,226,581 53,894,069 Fund balances at end of year $ 31,143,594 $ 5,651,884 $ 51,089,948 Riverside County Transportation Commission Schedule of Expenditures for Local Streets and Roads by Geographic Area - All Special Revenue Funds Year Ended June 30, 2012 Western County: City of Banning $ 434,582 City of Calimesa 123,095 City of Canyon Lake 138,252 City of Corona 3,004,144 City of Eastvale 697,065 City of Hemet 1,326,464 City of Jurupa Valley 1,457,782 City of Lake Elsinore 915,846 City of Menifee 1,149,287 City of Moreno Valley 2,895,749 City of Murrieta 1,698,116 City of Norco 493,441 City of Perris 1,094,103 City of Riverside 5,462,802 City of San Jacinto 633,208 City of Temecula 2,247,401 City of Wildomar 450,069 Riverside County 4,154,278 28,375,684 Coachella Valley: City of Cathedral City 1,153,591 City of Coachella 520,219 City of Desert Hot Springs 377,729 City of Indian Wells 202,040 City of Indio 1,360,448 City of Palm Desert 2,235,656 City of Palm Springs 1,685,641 City of Rancho Mirage 750,959 Riverside County 1,300,439 Coachella Valley Association of Govemments 1,262,965 Palo Verde Valley: City of Blythe Riverside County 10,849,687 731,196 171,323 902,519 Total local streets and roads expenditures $ 40,127,890 58 Riverside County Transportation Commission Schedule of Expenditures for Transit and Specialized Transportation by Geographic Area and Source - All Special Revenue Funds Year Ended June 30, 2012 Sales Taxes Measure A Local State Transportation Transit Fund Assistance Total Western County: Blindness Support Services, Inc. $ 72,562 $ - $ - $ 72,562 Boys and Girls Club of Southwest County 222,085 222,085 CASA for Riverside County 57,160 57,160 Care -A -Van 335,793 335,793 Care Connexxus 224,482 - 224,482 City of Banning 1,130,537 196,790 1,327,327 City of Beaumont - 1,260,000 524,307 1,784,307 City of Corona - 1,494,077 1,494,077 City of Norco 67,200 67,200 City of Riverside - 2,563,017 2,563,017 City of Wildomar 8,317 8,317 Community Connect 161,654 161,654 Friends of the Moreno Valley Senior Citizens 59,529 59,529 Independent Living Partnership 546,111 546,111 Inland Aids Project 76,177 76,177 Operation Safe House 18,700 18,700 Peppermint Ridge 6,767 - 6,767 Riverside Transit Agency 2,434,235 22,714,397 639,145 25,787,777 Other 223,643 223,643 4,514,415 29,162,028 1,360,242 35,036,685 Coachella Valley: SunLine Transit Agency 4,256,881 10,258,596 475,679 14,991,156 Other 1,661 1,661 Palo Verde Valley: Palo Verde Valley Transit Agency 4,258,542 10,258,596 475,679 14,992,817 769,126 167,336 936,462 769,126 167,336 936,462 Total transit and specialized transportation expenditures $ 8,772,957 $ 40,189,750 $ 2,003,257 $ 50,965,964 59 This page intentionally left blank. 60 Statistical Section This page intentionally left blank. Riverside County Transportation Commission Statistical Section Overview This part of the Riverside County Transportation Commission's comprehensive annual financial report presents detailed information as a context for understanding what the information in the financial statements, note disclosures, and required supplementary information says about the Commission's overall financial health. Financial Trends: These schedules contain trend information to help the reader understand how the government's financial performance and well-being have changed over time. The schedules include: Net Assets By Component Changes in Net Position Fund Balances of Governmental Funds Changes in Fund Balances of Governmental Funds Revenue Capacity: These schedules contain information to help the reader assess the government's most significant local revenue source, the Measure A sales tax. These schedules include: Sources of County of Riverside Taxable Sales by Business Type Direct and Overlapping Sales Tax Rates Principal Taxable Sales Generation by City Measure A Sales Tax Revenues by Program and Geographic Area Measure A Sales Tax by Economic Category Debt Capacity: These schedules present information to help the reader assess the affordability of the government's current levels of outstanding debt and the government's ability to issue additional debt in the future. These schedules include: Pledged Revenue Coverage Ratios of Outstanding Debt by Type Computation of Legal Debt Margin Demographic and Economic Information: These schedules offer demographic and economic indicators to help the reader understand the environment within which the government's financial activities take place. These schedules include: Demographic and Economic Statistics for the County of Riverside Employment Statistics by Industry for the County of Riverside Operating Information: These schedules contain service and infrastructure data to help the reader understand how the information in the government's financial report relates to the services the govemment provides and the activities it performs. These schedules include: Full-time Equivalent Employees by Function/Program Operating Indicators Capital Asset Statistics by Program 61 This page intentionally left blank. 62 £9 :less¢ mdeo u, pommel, wee PoP9 8. aeu!1Ise11.1n5, 'stoafoJd uolsuaixa a •aintonJis 6upped uopeis eq •wr ponJis 6unped uopeis pal Jainwwoo a pue )(mei psuap lepowpinw a io uop s961.e10 asayi Pella! of paslna, uaaq tou aney uopewasaJd siyi ui siunowe Jean Joud '69Z'£4 of papissepaJ aJaM uoppod tau 6uiuul6aq Jo swauodwoo weuao'npeuoplppy 949'96Z �r luauodwoo nq uomsod laN (000'000'004)s (000'000'00Z)s _s 000'000'0On 000'000'00PS 000'000'009S 000'000'009S 000'000'000'Is •sa6uego asaw papal of pasinw uaaq lou aney uopewasaid slyt ul stunowe Jean mud stuawaiets lepueup £00Z ayi ul uopetuasaJd ayt of uJJoiuoo of paplsselow aleM uop!sod tau 6uluul6aq io sluauodwoo uleueo 'npeuoplppy'L46'Z64'OZ$co asewoap tau a ui 6upinsw 'uop!doow anuanw pue slasse lepdeo of suopowna io 11nsw a se paima! sem £OOZ ul uoplsod tau 6uiuui6a8 , ivawuedag aoueuld :aomos 699'91.L'801. $ ££4'909'61.Z $ 698'994'4££ $ lZ4'£91.'LL4 $ 61.4'690096 $ Z4Z'481.'089 $ 114'Z94'999 $ 69Z'lll'41.9 $ ZZO'498'9£9 $ 1.80'Z£S'£99 • $ uoplsod tau sapinpoe letuawwano6letol , (946'£44'4L1.) z (LL4'6Z8'21.) (ZE'4LZ'4Z1.) (1.88'4L0'ZOL) (640'9L9'81.1.) (496'400'6Ft) (996'899'90Z) (9017'999'6ZZ) (1.6Z'94L'£6Z) (Z9£'6Z6'91.Z) patoutswun , 1.S0'£l6'491. ¢ 96l'61•L'Z£Z £Z9'409'9Z£ OZZ'6Z1.'Z44 LLL'49L'L£9 ZLl'1.1.L'lZ9 SLO'4L4'909 41.4'1.8L'649 6L1.'960'L89 L46'£81.'3LS patoutsa l , 494'L4Z'8Z1. $ z ZLL'91.L'401. $ , 8Z9'9ZZ'££1. $ Z80'6Zl'LEl $ 1.6Z'4L8'L41. $ , 4£0'8L4'LOZ $ 9 Z8£'L49'99Z $ 9 £9Z'91.Z'46Z $ J 460'Zl6'1.4£ $ ZOS'LLZ'LZ£ $ siesseletldeoulwoman! laN :sapinpoe letuawwanoo £OOZ HOZ 900Z 900Z LOOZ 800Z 600Z OLOZ LLOZ ZLOZ Je8,1, leash (slseg'annoy) sin),leosld ualise� ivauodwoo nq uoplsod taN uolsslwwoo uopepodsueJl Awnop aplsJanla Riverside County Transportation Commission Changes in Net Position Last Ten Fiscal Years (Accrual Basis) Fiscal Year Ended June 30 2012 2011 2010 2009 2008 2007 2006 2005 2004 2003 Expenses Governmental activities: General government $ 7,780,478 S 8,453,876 $ 7,024,517 S 5,525,963 $ 5,299,048 $ 5,592,637 $ 4,848,292 $ 4,115,907 $ 3,909,942 $ 4,307,544 Bicycle and pedestrian projects 1,389,567 1,940,499 317,048 2,747,151 1,436,710 760,840 848,959 1,021,637 927,138 CETAP 4,464,387 5,490,993 2,362,393 4,832,008 8,017,024 5,433,499 3,549,683 4,147,758 608,882 2 Commuter assistance 3,193,172 2,868,630 3,266,834 5,199,032 3,464,834 3,122,306 2,888,451 2,599,448 2,959,732 2,318,033 Commuter rail 21,480,248 27,792,375 20,544,634 16,038,028 14,832,473 12,458,895 11,350,220 8,907,828 8,702,803 5,659,863 Highways 72,341,578 40,113,092 24,828,958 143,532,009 59,988,334 42,436,979 36,226,705 35,362,793 35,456,330 29,812,083 Local streets and roads 40,127,890 36,856,925 34,258,313 45,661,155 54,520,115 60,099,526 60,389,876 53,333,169 46,208,968 40,256,464 Motodst assistance 3,846,245 3,530,695 2,987,136 2,623,184 3,983,252 2,408,612 2,280,646 2,191,061 1,978,380 1,843,017 Planning and programming 3,924,413 4,683,272 5,321,121 10,126,142 7,931,869 6,561,185 5,976,647 4,328,038 4,287,696 2,978,044 Right of way management - 3 1,270,487 1,428,066 1,399,316 551,960 631,996 622,498 580,224 338,353 154,582 Regional arterials 5,816,666 29,362,894 26,371,339 20,948,530 31,131,731 30,756,287 17,164,803 17,621,505 13,996,300 7 8,428,021 Transit and specialized transportation 51,221,772 44,699,650 43,820,225 77,417,741 83,927,945 75,567,829 62,527,276 55,905,814 53,411,921 ' 9,913,504 Interest expense 15,221,031 11,799,586 7,099,038 9,515,282 6,281,232 6,881,128 7,832,733 8,3413,928 11,736,129 10,381,790 Total governmental activities expenses 230,807,447 218,862,974 179,629,622 345,565,541 281,366,527 252,711,719 216,506,789 198,464,110 184,522,574 116,052,945 Program Revenues Governmental activities: Charges for services Commuter assistance - - 573,864 948,532 Commuter rail 145,735 2,525,314 352,826 463 382 2,564 146,349 394,924 Right of way management 184,010 196,527 421,738 507,298 497,656 445,313 547,075 395,305 213,311 Highways 50 Motorist assistance - - 19,778 Other 27,681 46 2,331 2,367 26,273 24,972 55,255 4,498 Operating grants and contributions 54,641,955 39,886,648 23,130,456 90,280,426 28,391,787 47,313,916 90,389,018 72,202,430 61,412,882 t 10,489,860 Capital grants and contributions 5,228,621 9,199,268 12,257,099 25,321,886 9,742,280 620,292 997,362 877,665 1,183,922 21,190,027 Total governmental activities program revenues 60,016,311 49,297,607 35,584,082 118,569,188 38,996,522 48,434,694 91,858,398 73,654,706 63,767,577 33,241,152 Net Revenues (Expenses) Governmental activities (170,791,136) (169,565,367) (144,045,540) (226,996,353) (242,370,005) (204,277,025) (124,648,391) (124,809,404) (120,754,997) (82,811,793) General Revenues Governmental activities: Measure A sales taxes 134,984,307 123,439,833 114,526,254 119,688,289 142,537,548 154,539,723 157,236,314 138,921,247 120,564,890 105,782,595 Transportation Development Act sales taxes 80,044,131 60,772,795 69,499,841 77,920,485 93,042,150 104,160,163 90,927,244 77,818,565 69,133,102 ' 7,488,638 Unrestricted investment eamings 4,196,452 4,411,122 5,987,921 14,211,197 25,055,456 23,897,399 11,639,575 5,146,325 3,115,232 4,932,021 Other miscellaneous revenue 1,287,981 2,694,370 1,680,322 1,454,611 1,565,674 1,571,716 1,698,024 2,366,380 536,002 2,282,582 Gain on sale of capital assets 3,278,022 5,874,796 123,054 Total governmental activities general revenues 220,512,871 191,318,120 191,694,338 213,274,582 262,200,828 287,447,023 267,375,953 224,375,571 193,349,226 120,485,836 Changes in Net Position Governmental activities $ 49,721,735 $ 21,752,753 $ 47,648,798 $ (13,721,771) $ 19,830,823 $ 83,169,998 $ 142,727,562 $ 99,566,167 $ 72,594,229 $ 37,674,043 Source: Finance Department The Local Transportation Fund, previously reported as a fiduciary fund, was reclassified as a special revenue fund in the 2004 financial statements, resulting in an increase in sales tax revenues as well as bicycle and pedestrian facilities and transit and specialized transportation expenditures. Prior year amounts in this presentation have not been revised to reflect these changes. z The Transportation Uniform Mitigation Fee program was implemented in fiscal year 2004, resulting in a new revenue source for expenditures related to the CETAP and regional arterials programs. 7 Right of way expenditures were classified as highways or commuter rail expenditures beginning in 2012. ° In FY 2012 the Commission implemented GASB Statement No. 65, Items Previously Reported as Assets and Liabilities. Prior year amounts in this presentation have not been revised to reflect this change. 64 $400, 000, 000 $350, 000, 000 $300,000,000 $250,000,000 $200,000,000 $150, 000, 000 $100, 000, 000 $50,000,000 $400, 000, 000 $350,000,000 $300,000,000 $250,000,000 $200,000,000 $150, 000, 000 $100, 000, 000 $50,000,000 $- Riverside County Transportation Commission Changes in Net Position (Continued) Last Ten Fiscal Years Expenses by Function 2012 2011 2010 2009 2008 2007 2006 2005 2004 2003 Revenues by Source 2012 2011 2010 2009 2008 2007 2006 2005 2004 2003 II Interest expense o Transit and specialized transportation ❑ Regional arterials s Right of way management ■ Planning and programming o Motorist assistance ■ Local streets and roads Highways ■ Commuter rail Commuter assistance ❑ CETAP ■ Bicycle and pedestrian facilities o General government ■ Gain on sale of capital assets °Other miscellaneous revenue s Unrestricted investment earnings °Vehicle registration fees ■ Transportation Development Act sales taxes °Measure A sales taxes °Capital grants and contributions sOperating grants and contributions ©Charges for services Riverside County Transportation Commission Fund Balances of Governmental Funds Last Ten Fiscal Years (Modified Accrual Basis) Fiscal Year 2012 2011 2010 2009 2008 2007 2006 2005 2004 2003 GENERAL FUND General fund: Nonspendable $ 157,957 $ 143,397 $ 253,819 Restricted 8,114,440 7,110,013 7,266,584 P Committed 1,606,976 P Assigned 5,412,830 6,270,944 4,134,059 2 Total general fund $ 13,685,227 $ 13,524,354 $ 13,261,438 General fund: Reserved $ 6,756,708 $ 6,886,986 $ 7,070,115 $ 7,215,579 $ 6,304,837 $ 5,821,023 $ 5,001,493 Unreserved 3,348,711 3,238,251 2,877,923 2,014,480 2,215,643 1,531,151 756,299 Total general fund $ 10,105,419 $ 10,125,237 $ 9,948,038 $ 9,230,059 $ 8,520,480 $ 7,352,174 $ 5,757,792 ALL OTHER GOVERNMENTAL FUNDS All other governmental funds: Nonspendable $ 1,481,019 $ 5,389,775 $ 2,554,136 Restricted 560,412,373 570,450,515 535,752,354 2 Total all other governmental funds $ 561,893,392 $ 575,840,290 $ 538,306,490 All other governmental funds: Reserved $ 487,425,652 $ 520,874,648 $ 533,276,158 $ 438,453,362 $ 323,219,025 $ 233,973,154 $ 149,911,558 Unreserved, reported in: Special revenue funds 8,289,036 7,297,744 6,936,417 5,745,792 4,895,792 4,049,038 3,225,168 Capital projects funds (49,576,636) (7,253,535) Total all other governmental funds $ 446,138,052 $ 520,918,857 $ 540,212,575 $ 444,199,154 $ 328,114,817 $ 238,022,192 ' $ 153,136,726 Source: Finance Department The Local Transportation Fund, previously reported as a fiduciary fund, was reclassified as a special revenue fund in the 2004 financial statements, resulting in an increase to beginning fund balance of $34,295,645. ' In FY 2010 the Commission implemented GASB Statement No. 54, Fund Balance Reporting and Governmental Fund Type Definitions. 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Transportation Commission Sources of County of Riverside Taxable Sales by Business Type Last Ten Calendar Years On Thousands) 2010 2009 2008 2007 2006 2005 2004 2003 2002 2001 Apparel stores $ 1,391,174 $ 1,293,271 $ 1,121,543 $ 1,171,013 $ 1,080,385 $ 990,129 $ 867,276 $ 746,015 $ 610,388 $ 565,295 General merchandise stores 2,947,905 2,855,733 3,389,936 3,593,134 3,553,554 3,364,474 3,026,335 2,671,971 2,459,046 2,275,736 Food stores 1,267,758 1,251,220 .1,254,366 1,352,609 1,309,782 1,197,438 1,079,972 1,028,392 967,171 930,232 Eating 8, drinking 2,317,486 2,266,853 2,340,554 2,388,039 2,316,422 2,157,801 2,007,338 1,775,146 1,617,674 1,521,717 Household 412,325 858,098 816,379 843,945 948,217 964,629 862,551 691,051 594,049 526,083 Building materials 1,232,145 1,237,518 1,435,337 1,961,911 2,390,236 2,424,898 2,596,661 1,678,347 1,427,831 1,339,020 Automotive. 5,306,408 4,749,994 6,126,512 7,137,075 6,956,756 6,751,648 6,240,712 5,198,391 4,803,171 4,358,688 Other retail sales 1,951,385 1,442,875 3,250,335 2,794,790 1,024,551 944,155 1,191,029 592,415 1,151,821 1,109,093 Total all other outlets 6,326,194 6,272,315 6,268,633 7,781,093 10,236,334 9,521,319 7,365,274 7,327,407 5,867,843 5,605,691 $ 23,152,780 $ 22,227,877 $ 26,003,595 $ 29,023,609 $ 29,816,237 $ 28,256,491 $ 25,237,148 $ 21,709,135 $ 19,498,994 $ 18,231,555 Measure A Ordinance 88-1 direct sales tax rate Source: State Board of Equalization Year represents most recent data available. 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% Sources of County of Riverside Taxable Sales by Business Type for 2010 Apparel stores 6% Other retail sales 8% General merchandise stores 13% Food stores 6% Eating & drinking 10% Household 2% Building materials 5% .68 Fiscal Year Riverside County Transportation Commission Direct and Overlapping Sales Tax Rates Last Ten Fiscal Years Measure A Direct RateCounty of Riverside 2012 0.50% 7.75% 2011 0.50% 8.75% 2010 0.50% 8.75% 2009 0.50% 8.75% 2008 0.50% 7.75% 2007 0.50% 7.75% 2006 0.50% 7.75% 2005 0.50% 7.75% 2004 0.50% 7.75% 2003 0.50% 7.75% Source: Commission Finance Department and California State Board of Equalization. 1 The Measure A sales tax rate may be changed only with the approval of 2/3 of the voters. 2 The State of California increased the state sales tax rate 1 % in April 2009. 3 Effective July 1, 2011, the State of California decreased the state sales tax rate by 1 %. 69 Riverside County Transportation Commission Principal Taxable Sales Generation by City Current Year and Nine Years Ago 2010 2001 Taxable Sales (in Percentage of Taxable Sales (in Percentage of thousands) Rank Total thousands) Rank Total City of Riverside $ 3,692,302 2 15.9% $ 3,407,252 2 18.7% City of Corona 2,454,989 3 10.6% 2,055,770 3 11.3% City of Temecula 2,180,304 4 9.4% 1,621,447 4 8.9% City of Palm Desert 1,266,834 5 5.5% 1,211,069 5 6.6% City of Moreno Valley 1,067,546 6 4.6% 824,707 6 4.5% City of Murrieta 903,640 7 3.9% N/A City of Palm Springs 806,540 8 3.5% 623,956 9 3.4% City of Hemet 772,608 9 3.3% 673,955 8 3.7% City of La Quinta 633,545 10 2.8% 333,840 13 1.8% City of Lake Elsinore 599,836 11 2.7% 394,323 12 2.2% City of Indio 582,332 12 2.5% 531,686 10 2.9% City of Cathedral City 559,069 13 2.4% 707,465 , 7 3.9% City of Perris 516,944 14 2.2% 331,046 14 1.8% City of Menifee3 370,469 15 1.6% N/A City of Rancho Mirage 355,204 16 1.5% 298,849 15 1.6% City of Norco 354,729 17 1.5% 428,851 11 2.4% City of Beaumont 292,339 18 1.3% 91,387 19 0.5% City of Coachella 259,829 19 1.1% 146,254 17 0.8% City of San Jacinto 182,110 20 0.8% 76,532 20 0.4% City of Banning 146,742 21 0.6% 177,761 16 1.0% City of Blythe 135,094 22 0.6% 140,223 18 0.8% City of Wildomarz 104,184 23 0.5% N/A City of Desert Hot Springs 89,328 24 0.4% 66,584 21 0.4% City of Indian Wells 74,996 25 0.3% 62,958 22 0.3% City of Calimesa 51,057 26 0.2% 31,544 23 0.2% City of Canyon Lake 14,010 27 0.1% 11,055 24 0.1% Incorporated 18,466,580 79.9% 14,248,514 78.2% Unincorporated 4,686,200 1 20.2% 3,983,041 1 21.8% Countywide $ 23,152,780 100.0% $ 18,231,555 100.0% California $ 477,347,986 Source: California State Board of Equalization for the calendar year indicated. Year represents most recent data available. 2 City of Wildomar was incorporated on July 1, 2008. 3 City of Menifee was incorporated on October 1, 2008. $ 441,517,560 Taxable Sales by City $4,000,000 $3,500,000 $3,000,000 $2,500,000 $2,000,000 $1,500,000 $1,000,000 $500.000 $- y�aoeee)a e G`�a P o��a �Gc�°f�e G\ ee oG\c G9re aG' °9a e ay eaF�eQc� °.Sa\g'"�°%°\.Qa�G`� C'\;GraGsGoea�&c'" G �� `G ,ek` C OeG CPo G4o 70 Administration Highways Regional arterials Highways and regional arterials New corridors Economic development incentives Local streets and roads Public transit: Commuter assistance Commuter rail Bus Specialized transportation Bus and specialized transportation Bond financing Source: Finance Department Riverside County Transportation Commission Measure A Sales Tax Revenues by Program and Geographic Area Year Ended June 30, 2012 Special Revenue Funds General Western Coachella Palo Fund County Valley Verde $ 2,700,000 $ Total $ $ $ 2,700,000 30,473,314 30,473,314 8,962,740 8,962,740 15,499,552 15,499,552 11,054,045 11,054,045 1,195,032 1,195,032 28,979,524 10,849,687 902,519 40,731,730 1,493,790 6,094,663 2,158,527 1,904,582 8,066,466 4,649,866 1,493,790 6,094,663 2,158,527 1,904,582 4,649,866 8,066,466 $ 2,700,000 $ 100,382,683 $ 30,999,105 $ 902,519 $ 134,984,307 Geographic Distribution by Area Coachella Valley 23% Palo Verde 1% General Fund 2% Sales Tax Revenues by Program and Geographic Area $45,000,000 $40,000,000 $35,000,000 $30,000,000 $25,000,000 $20,000,000 $15,000,000 $10,000,000 $5,000,000 $- s��a�°c fee' �ec�\� Nao`y ecs e 06.,•Cr �e��'` 0Jh <`a\oc ra�oc ocA c °cae °ce\a �co `co Seca `oa ��° o5Q° oSQo a{ca P eA eA �e Leo ee� J`e Go a��a a`�2 eoo i Q- cp e�oQ ay of e`tie a�,e �9r4eaya roc G Qec: 2 a Qec; 9 s o c �4 ' Ei Palo Verde Coachella Valley » Western County m General Fund 71 Economic Category Riverside County Transportation Commission Measure A Sales Tax by Economic Category Last Six Calendar Years % of Total 20111 2010 2009 2008 2007 2006 General retail 29.8 30.9 30.9 28.2 26.8 25.5 Transportation 27.1 25.0 22.8 24.9 26.1 26.5 Food products 16.4 17.0 17.8 16.0 14.4 13.3 Business to business 14.1 14.5 15.2 16.4 15.9 15.3 Construction 10.5 10.5 11.1 12.3 14.4 16.9 Miscellaneous 2.1 2.1 2.2 2.2 2.4 2.5 Total 100.0 100.0 100.0 100.0 100.0 100.0 Source: MuniServices LLC. Prior years' information is not available. Year represents most recent data available. 72 Riverside County Transportation Commission Measure A Revenues and Pledged Revenue Coverage' Last Ten Fiscal Years Sales Tax Revenue Bonds Net Measure A Sales Tax Fiscal Year Revenues2 2012 2011 20103 20094 2008 2007 2006 2005 2004 2003 $ 134,984,307 123,439,833 114,526,253 119,688,289 142,537,548 154,539,723 157,236,314 138,921,247 120,564,890 102,442,647 Source: Finance Department This schedule meets 2 Sales tax revenue bo 3 In FY 2010 the 2008 from debt service. 4 In FY 2009 all bonds Measure A Sales Tax Revenue Growth (Decline) Senior Lien Rate Debt Service Senior Lien Coverage Ratio Subordinate Lien Debt Total Debt Service Service 9.35% $ 21,503,582 6.28 $ - $ 21,503,582 7.78% 12,651,386 9.76 - 12,651,386 -4.31% 8,918,183 12.84 - 8,918,183 -16.03% 34,020,724 3.52 1,452,634 35,473,358 -7.77% 34,002,732 4.19 1,470,388 35,473,120 -1.71% 34,005,357 4.54 1,469,588 35,474,945 13.18% 34,012,634 4.62 1,470,587 35,483,221 15.23% 34,013,294 4.08 1,472,237 35,485,531 17.69% 34,004,981 3.55 1,472,237 35,477,218 6.95% 34,076,553 3.01 1,472,925 35,549,478 Total Debt Service Coverage Ratio 6.28 9.76 12.84 3.37 4.02 4.36 4.43 3.91 3.40 2.88 the requirements for Continuing Disclosure of historical Measure A sales tax revenues. nds are backed by the sales tax revenues, net of Board of Equalization fees, during the fiscal year. bonds related to the 2009 Measure A program were current refunded. The payment to escrow agent is excluded related to the 1989 Measure A program matured as the 1989 Measure A program expired on June 30, 2009 73 Riverside County Transportation Commission Ratios of Outstanding Debt by Type Last Ten Fiscal Years Governmental Activities Total Percentage Sales Tax Commercial Contract Capital Governmental of Personal Debt per Year Revenue Bonds Paper Payable Leases Activities Income' Capita i 2012 $ 317,138,111 $ $ $ 30,943 $ 317,169,054 N/A $ 142.38 2011 323,537,074 54,874 323,591,948 N/A 145.91 2010 180,731,699 83,284,000 78,104 264,093,803 N/A 121.16 2009 127,538,888 110,000,000 100,652 237,639,540 0.38% 111.01 2008 163,738,235 - 1,100,000 164,838,235 0.26% 78.39 2007 65,495,000 80,005,000 2,100,000 147,600,000 0.24% 72.00 2006 95,695,000 30,005,000 3,100,000 25,591 128,825,591 0.22% 65.20 2005 124,335,000 30,005,000 4,100,000 55,009 158,495,009 0.30% 83.61 2004 151,535,000 5,100,000 83,082 156,718,082 0.32% 86.37 2003 177,352,519 - 109,870 177,462,389 0.39% 102.57 Sources: Finance Department for outstanding debt for the fiscal year ended June 30 and California State Department of Finance for population as of January 1. See the Schedule of Demographic and Economic Statistics on page 74 for personal income and population data. Riverside County Transportation Commission Computation of Legal Debt Margin' Last Ten Fiscal Years Fiscal Year 2012 2011 2010 2009 2008 2007 2006 2005 2004 2003 Measure A Ordinance No. 02-001, as amended by Ordinance No. 10-002' Total debt limit authorized $ 975,000,000 $ 975,000,000 $ 500.000,000 $ 500,000,000 $ 500,000,000 $ 500.000,000 $ 500,000,000 $ 500,000,000 $ 500,000,000 $ 500,000,000 Amount of debt applicable to debt limit 318,200,000 324,700,000 264,284,000 236,395,000 126,395,000 80,005,000 30,005,000 30,005,000 Legal debt margin $ 656.800,000 $ 650,300,000 $ 235,716,000 $ 263,605,000 $ 373,605,000 $ 419,995,000 $ 469.995,000 $ 469,995,000 $ 500.000,000 $ 500,000,000 % of debt to legal debt limit 32.6% 33.3% 52.9% 47.3% 25.3% 16.0% 6.0% 6.0% 0.0% 0.0% Measure A Ordinance No. 88-1, as amended by Ordinance 92-1' Total debt limit authorized Amount of debt applicable to debt limit Legal debt margin %of debt to legal debt limit Source: Finance Department $ 525,000,000 $ 525,000,000 $ 525,000,000 $ 525,000,000 $ 525,000,000 $ 525,000,000 $ 525,000,000 33,630,000 65.495,000 95,695,000 124,335,000 151,535,000 177,352,519 $ 525,000,000 $ 491,370,000 $ 459,505,000 $ 429,305,000 $ 400,665,000 $ 373,465,000 $ 347,647,481 0.0% 6.4% 12.5% 18.2% 23.7% 28.9% 33.8% ' The Commission's debt limits were approved by the voters of Riverside County as pad of the sales lax ordinances and are specific to the Commission: accordingly, there are no overlapping debt considerations. Ordinance No. 02-001 was approved by a 2/3 majority of the voters in November 2002. In November 2010, a majority of the voters approved Ordinance No. 10-002 to increase the debt limit from $500 million to $975 million. ' Ordinance No. 88-1 expired on June 30, 2009. All outstanding debt related to Ordinance 88.1 matured prior to the expiration dale. Measure A Ordinance No. 02-001, as amended by Ordinance No. 10-002 $1,200,000.000 $1,000,000.000 $800,000,000 8600,000,000 $400,000,000 $200.000,000 $ 012 2011 2010 2009 2008 2007 2006 2005 2004 2003 ©Total debt limit authorized ®Amount of debt applicable to debt limit $600,000,000 $500,000,000 $400.000,000 8300,000,000 8200,000,000 $100,000,000 Measure A Ordinance No. 88- , as amended by Ordinance 92 1 2009 2008 2007 2006 005 2004 2003 eAmount of debt applicable to debt limit f 75 Riverside County Transportation Commission Demographic and Economic Statistics for the County of Riverside Last Ten Calendar Years Per Capita Personal Income Personal Unemployment Calendar Year Population' (thousands)2 Income 2 Rate3 2012 2,227,577 N/A N/A N/A 2011 2,217,778 N/A N/A 12.4% 2010 2,179,692 $ 64,376,498 $ 29,222 14.7% 2009 2,140,626 63,228,086 29,748 13.4% 2008 2,102,741 64,503,728 30,676 8.5% 2007 2,049,902 61,023,518 29,769 6.0% 2006 1,975,913 57,666,983 29,185 5.0% 2005 1,895,695 52,850,398 28,157 5.4% 2004 1,814,485 49,443,185 27,827 6.0% 2003 1,730,219 45,016,790 26,393 6.5% Sources: ' California State Department of Finance as of January 1. 2 U.S. Department of Commerce Bureau of Economic Analysis. Represents most recent data available. 3 Riverside County Economic Development Agency. Represents most recent data available. 76 Riverside County Transportation Commission Employment Statistics by Industry for the County of Riverside Calendar Year 2010 and Nine Years Prior Industry Type of Total % of Total 20101 Employment 2001 Employment Agricultural services, forestry, fishing and other 12,400 2.3% 16,700 3.4% Mining 400 0.1% 500 0.10/0 Construction 35,400 6.6% 53,400 11.0% Manufacturing 37,900 7.1% 50,600 10.4% Transportation, warehousing, and public utilities 19,400 3.6% 10,500 2.2% Wholesale trade 19,100 3.6% 15,000 3.1% Retail trade 78,500 14.6% 62,400 12.9% Professional & business services 50,300 9.4% 42,500 8.8% Education & health services 58,000 10.8% 45,300 9.4% Leisure & hospitality 67,700 12.6% 57,200 11.8% Finance, insurance, and real estate 19,300 3.6% 16,900 3.5% Other services 28,500 5.3% 24,000 5.0% Federal government, civilian 7,600 1.4% 6,300 1.3% State government 15,900 3.0% 13,300 2.7% Local government 85,600 16.0% 69,700 14.4% Total employment 536,000 100.0% 484,300 100.0% Source: State of California Economic Development Department Year represents most recent data available. 77 Riverside County Transportation Commission Full-time Equivalent Employees by Function/Program Last Ten Fiscal Years As of June 30 Function/Program 2012 2011 2010 2009 2008 2007 2006 2005 2004 2003 Management services and administration 13.9 12.7 8.9 12.7 17.6 15.0 12.2 12.7 12.5 13.0 Planning and programming 5.13 5.2 5.5 5.1 5.4 6.4 5.0 3.4 3.7 3.6 Rail operations 3.3 3.1 3.3 2.9 3.1 2.8 3.1 1.6 2.0 2.4 Specialized transit/transportation 2.5 2.6 2.6 2.2 2.0 2.4 2.3 1.4 1.3 1.2 Commuter assistance 1.64 1.6 1.8 1.2 1.3 1.3 2.1 2.1 2.5 2.2 Motorist assistance 1.23 0.9 0.7 0.8 0.7 0.7 0.8 0.8 0.8 1.0 Capital project development and delivery 12.3 11.9 14.2 11.1 7.9 6.4 4.7 3.0 2.2 1.6 Total full-time equivalents 40.0 38.0 37.0 36.0 38.0 35.0 30.2 25.0 25.0 25.0 Source: Finance Department 78 Commuter rail operations: Weekday trips Growth of average daily ridership on commuter lines: Riverside line IEOC line 91 line Farebox recovery ratio: Riverside line IEOC line 91 line Specialized transit/transportation: Specialized transit grants awarded Riverside County Transportation Commission Operating Indicators Last Ten Fiscal Years As of June 30 2012 2011 2010 2009 2008 2007 2006 2005 2004 2003 11,675 11,321 11,340 12,224 12,304 11,696 11,391 9,721 9,532 8,818 5,279 4,142 2,254 58.5 % 31.3% 49.7% 5,177 3,855 2,289 59.8 % 31.1% 54.6% 5,124 4,011 2,205 52.5 % 28.3% 49.3% 5,269 4,611 2,344 51.0 % 37.3% 53.0% 5,184 4,859 2,261 53.01 % 42.60% 45.53% 4,769 4,651 2,276 67.07% 42.19% 49.02% 4,370 4,149 2,107 48.5% 45.5% 57.2% 4,566 3,634 1,876 46.9% 48.7% 107.0% 4,462 3,641 1,700 51.1% 56.6% 101.4% 4,241 3,169 1,557 49.8% 49.3% 71.3% 21, 22 .22 22 14 15 9 10 8 10 Commuter assistance: Club Ride members N/A N/A N/A 7,378 5,860 Rideshare Incentive members 1,056 1,061 1,131 N/A N/A Rideshare Plus Rewards members 4,848 5,518 7,080 N/A N/A Incoming 1-866-RIDESHARE telephone calls 1,531 1,257 2,145 2,423 3,709 Rideshare Connection bulletins produced 11 13 N/A N/A N/A RideSmart Tips produced N/A N/A N/A N/A N/A Rideguides produced 15,628 29,052 43,319 34,940 23,121 Commuter Exchange events 52 52 50 73 71 4,436 3,901 2,837 1,994 1,960 N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A 2,613 2,433 801 829 1,243 N/A N/A N/A N/A N/A 45,304 27,790 32,379 9,335 N/A 24,676 N/A N/A N/A N/A 60 23 5 9 8 Motorist assistance: Call boxes 594 613 614 614 630 682 979 1,058 1,083 1,090 Calls made from call boxes 5,043 5,251 5,934 6,574 7,543 9,595 15,390 19,945 23,713 28,404 Contracted Freeway Service Patrol vehicles 21 22 22 20 20 17 15 15 15 13 Vehicles assisted by Freeway Service Patrol 42,748 45,751 48,312 43,119 45,500 40,025 31,838 32,542 32,564 27,485 1E511 web vists 341,716 244,277 N/A N/A N/A N/A N/A N/A N/A N/A 1E511 call volumes 362,957 489,036 N/A N/A N/A N/A N/A N/A N/A N/A Transportation Uniform Mitigation Fee program: Approved regional arterial projects 24 24 24 24 24 24 24 24 Measure A program: Highways - $ 111,049,502 $ 75,011,698 $ 45,698,211 $165,100,551 $ 65,697,249 $ 48,359,404 $ 37,073,826 $ 36,340,818 $ 33,133,748 $ 29,459,603 Commuter rail 19,690,126 22,632,065 20,312,056 32,089,238 12,419,675 14,044,435 2,784,423 2,250,187 8,116,270 24,973,615 Regional arterials 124 8,638,637 11,920,846 12,645,090 18,220,540 30,756,287 10,350,500 10,056,326 8,246,797 8,445,554 Local streets and roads 40,127,890 36,856,925 34,258,313 45,661,155 54,520,115 59,202,631 60,389,876 53,333,169 46,208,968 40,260,340 Specialized transit and commuter assistance 11,930.437 11,262,588 10,161,780 9,838,990 9,071,302 6,358,224 7.887.298 7,458,994 7,238,299 6,295,180 Total program expenditures $182,798,079 $ 154,401,913 $ 122,351,206 $ 265,335,024 $ 159,928,881 $ 158,720,981 $ 118.485.923 $ 109,439,494 $ 102,944,082 $ 109,434,292 Source: Commission Departments ' This brochure was discontinued beginning FY 2007/08. 79 Riverside County Transportation Commission Capital Asset Statistics by Program Last Ten Fiscal Years As of June 30 2012 2011 2010 2009 2008 2007 2006 2005 2004 2003 Commuter rail: Transit centers owned and managed 1 1 - - - - Commuter rail stations owned and managed 5 5 5 5 5 5 5 5 5 5 Miles of commuter rail easements 104.6 104.6 104.6 104.6 104.6 104.6 104.6 104.6 104.6 104.6 Commuter Assistance: Commuter Exchange Vehicle Source: Commission Departments 1 1 1 1 1 1 1 1 1 1 80 Local Transportation Fund of the County of Riverside, as Administered by the Riverside County Transportation Commission Financial and Compliance Report Year Ended June 30, 2012 Assurance Tax Consulting Contents Independent Auditor's Report on the Financial Statements and Supplementary Information 1-2 Financial Statements Balance Sheet 3 Statement of Revenues, Expenditures and Change in Fund Balance 4 Notes to Financial Statements 5-7 Supplementary Information Schedule of Allocations and Disbursements Schedule of Unclaimed Apportionments (Articles 4 and 8) Schedule of Unclaimed Apportionments (Article 3) 8 9 10 Independent Auditor's Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance With Government Auditing Standards 11-12 McGladrey LIP McGla rey Independent Auditor's Report on the Financial Statements and Supplementary Information Board of Commissioners Riverside County Transportation Commission Riverside, CA We have audited the accompanying financial statements of the Local Transportation Fund of the County of Riverside, as administered by the Riverside County Transportation Commission (the Commission), as of and for the year ended June 30, 2012, as listed in the table of contents. These financial statements are the responsibility of the Commission's management. Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements: An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. As discussed in Note 1, the financial statements present only the Local Transportation Fund and do not purport to, and do not, present fairly the financial position of the Commission or the County of Riverside, California, as of June 30, 2012, and the change in their financial position for the year then ended, in conformity with accounting principles generally accepted in the United States of America. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of the Local Transportation Fund of the County of Riverside, as administered by the Commission, as of June 30, 2012, and the change in its financial position for the year then ended, in conformity with accounting principles generally accepted in the United States of America. In accordance with Government Auditing Standards, we have also issued our report dated November 5, 2012 on our consideration of the Commission's internal control over financial reporting and our tests of its compliance with certain provisions of laws, regulations, contracts, grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be considered in assessing the results of our audit. 1 Member of the F1SM Internal lcnal network of to ounnn9, tart -and conga king firms, Management has omitted a Management's Discussion and Analysis that accounting principles generally accepted in the United States of America require to be presented to supplement the financial statements. Such missing information, although not a part of the financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the financial statements in an appropriate operational, economic or historical context. Our opinion on the financial statements is not affected by this missing information. Our audit was conducted for the purpose of forming an opinion on the financial statements of the Local Transportation Fund of the County of Riverside, as administered by the Commission. The schedules listed in the table of contents as supplementary information are presented for purposes of additional analysis and are not a required part of the financial statements. Such information is the responsibility of management and was derived from, and relates directly to, the underlying accounting and other records used to prepare the financial statements. The information has been subjected to the auditing procedures applied in the audit of the financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the financial statements or to the financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the information is fairly stated in all material respects in relation to the financial statements as a whole. Irvine, CA November 5, 2012 2 Local Transportation Fund of the County of Riverside, as Administered by the Riverside County Transportation Commission Balance Sheet June 30, 2012 Assets Cash and investments in Riverside County Pooled Investment Fund Accounts receivable Interest receivable Total assets Liabilities and Fund Balance $ 79,798,943 13, 040, 856 67,626 $ 92,907,425 Liabilities: Accounts payable Due to other Commission funds Total liabilities $ 610,900 207,556 818,456 Restricted: Unapportioned Local Transportation Funds 12,212,325 Rail and bus transit and local streets and roads apportionments 76,530,788 Bicycle and pedestrian projects 3,296,219 Planning and programming 49,637 Total fund balance 92,088,969 Total liabilities and fund balance $ 92,907,425 See Notes to Financial Statements. 3 Local Transportation Fund of the County of Riverside, as Administered by the Riverside County Transportation Commission Statement of Revenues, Expenditures and Change in Fund Balance Year Ended June 30, 2012 Revenues: Sales taxes $ 66,556,673 Other reimbursements 40,775 Interest 317,831 Total revenues 66,915,279 Expenditures: Bicycle and pedestrian projects 1,389,567 Transit 52,261,207 Planning and programming 3,385,755 Total expenditures 57,036,529 Excess of revenues over expenditures 9,878,750 Fund balance, beginning of year 82,210,219 Fund balance, end of year $ 92,088,969 See Notes to Financial Statements. 4 Local Transportation Fund of the County of Riverside, as Administered by the Riverside County Transportation Commission Notes to Financial Statements Note 1. Nature of Operations and Significant Accounting Policies The Riverside County Transportation Commission (the Commission), in its capacity as the transportation planning agency for the County of Riverside, California (the County), is responsible for administering funds provided through the Local Transportation Fund (the Fund), which was created in accordance with the provisions of the Transportation Development Act of 1971. The significant revenue to the Fund is derived from 0.25 percent of the 7.25 percent statewide sales tax collected in the County by the State Board of Equalization (State). The accounting policies of the Commission conform to accounting principles generally accepted in the United States as applicable to governmental units. Presentation: The accompanying financial statements of the Fund are intended to present the financial position and the changes in financial position of only that portion of the governmental activities of the Commission that is attributable to the transactions of the Fund of the Commission. They do not purport to, and do not, present fairly the financial position of the Commission as of June 30, 2012 and the changes in its financial position, where applicable, for the year then ended, in conformity with accounting principles generally accepted in the United States. Basis of accounting: In accordance with the requirements for governmental funds, the modified accrual basis of accounting is followed in the Fund. Under the modified accrual basis of accounting, expenditures are recorded when they are expected to be liquidated with expendable available resources, and revenue is recorded when it becomes both measurable and available. "Measurable" means the amount of the transaction can be determined, and "available" means collectible within the current period or soon enough thereafter to be used to pay liabilities of the current period. For this purpose, the Commission considers revenues to be available if they are collected within 180 days of the end of the current fiscal period. Those revenues susceptible to accrual include sales taxes collected and held by the State at year-end on behalf of the Commission and interest revenue. Funding: There is a three -step process for obtaining funds from the Fund: apportionment, allocation and payment. Annually, the Commission determines each area's share of the anticipated Fund. This share is the area apportionment. Once funds are apportioned to a given area, they are typically available only for allocation to claimants in that area. Allocation is the discretionary action by the Commission that designates funds for a specific claimant for a specific .purpose. Payment is authorized by disbursement instructions issued by the Commission. Expenditures: Expenditures represent disbursements to the Commission, Southern California Association of Governments, cities, the County of Riverside and transit operators that have met the claimant eligibility requirements to receive Fund allocations that are approved by the Commission, per various Public Utilities Code Sections. All disbursements are to be used for transportation purposes. Accounts receivable: Accounts receivable consist primarily of Fund sales tax revenues from the State on all taxable sales within the County of Riverside, California, through June 30, 2012. Accounts payable: Accounts payable consist primarily of claims approved by the Commission, but not paid by the Commission, to the appropriate transit operators by June 30, 2012. Due to other Commission funds: Due to other Commission funds represents allocations to the Commission's General Fund for grade separation costs. 5 Local Transportation Fund of the County of Riverside, as Administered by the Riverside County Transportation Commission Notes to Financial Statements Note 1. Nature of Operations and Significant Accounting Policies (Continued) Fund balance restrictions: The Fund reports restricted fund balances to show the level of constraint governing the use of the funds. Restricted fund balances are restricted for specific purposes by enabling legislation. Note 2. Cash and Investments With County Treasurer The funds in the Riverside County Pooled Investment Fund (RCPIF) are pooled with those of other entities and invested in accordance with the County's investment policy. These pooled funds are carried at fair value. Fair value is based on quoted market prices and/or direct bids, when needed, from government dealers on some variable or floating rate items. Monies in the Fund are legally required to be deposited in the County Treasury pool. An Investment Oversight Committee has been established by the County, which acts as a regulator of the pool. As of June 30, 2012, the Commission had $79,798,943 invested in the RCPIF, with an average maturity of 438 days. Interest rate risk: While the Commission does not have a formal policy related to the interest rate risk of investments, the Commission's investment policy follows the California Government Code as it relates to limits on investment maturities as a means of managing exposure to fair value losses arising from increasing interest rates. Credit risk: As of June 30, 2012, the Commission's investment in the RCPIF was rated Aaa/MR1 by Moody's Investors Service and AAAN1 by Fitch Ratings. The Commission's investment policy only requires credit quality ratings for repurchase agreements, U.S. corporate debt, commercial paper, bankers' acceptances and certificates of deposit. 6 Local Transportation Fund of the County of Riverside, as Administered by the Riverside County Transportation Commission Notes to Financial Statements Note 3. Fund Balance The restricted fund balance represents the apportionments related to transit programs by geographic area, bicycle and pedestrian projects, planning and programming, and unapportioned Local Transportation Funds. For Western County transit programs, commuter rail and bus allocations are in accordance with the Commission's policy. At June 30, 2012, amounts in fund balance are restricted as follows: Rail and Bus Transit and Local Streets and Roads Apportionments: Western County: Commuter rail: Allocated and unclaimed Apportioned and unallocated . Bus transit: Allocated and unclaimed —Riverside Transit Agency Apportioned and unallocated Total rail and bus transit —Western County Coachella Valley: Allocated and unclaimed Apportioned and unallocated Total bus transit —Coachella Valley Palo Verde Valley: Allocated and unclaimed —Transit Apportioned and unallocated for transit and local streets and roads Total bus transit and local streets and roads —Palo Verde Valley Total for rail and bus transit and local streets and roads apportionments $ 3,639,007 14,932,072 11,528,416 39,178,318 69,277,813 836,298 5,598,721 6,435,019 84,784 733,172 817,956 $ 76,530,788 Bicycle and pedestrian projects: Allocated and unclaimed $ 1,823,010 Unallocated 1,473,209 Total for bicycle and pedestrian projects $ 3,296,219 Planning and programming, allocated and unclaimed $ 49,637 Unapportioned Local Transportation Funds $ 12,212,325 7 Supplementary Information Local Transportation Fund of the County of Riverside, as Administered by the Riverside County Transportation Commission Schedule of Allocations and Disbursements Year Ended June 30, 2012 Article 3 Planning, Programming SB 821 Article 3 Article 4 and Administrative Totals Allocations Disbursements Reimbursements Expirations Allocations Disbursements Allocations Disbursements Allocations Disbursements Reimbursements Unclaimed (Expirations), net Amount Expenditures: City of Banning $ 22.745 $ - $ - $ 22,745 $ 1,130,537 $ 1.130,537 $ - $ $ 1,153,282 $ 1,130,537 $ (22,745) $ City of Beaumont 1,260.000 1,260,000 1,260,000 1.260,000 City of Canyon Lake 70,000 - - 70,000 70,000 City of Cathedral City 50,253 29,794 80,047 50,253 (50,253) City of Coachella 198,592 132,105 66,487 - - 198,592 132.105 (66,487) City of Corona 34,721 33,548 1,173 1,494,077 1,494,077 1,528,798 1,527.625 (1,173) City of Hemet 115,313 75,000 - - 115,313 75,000 40,313 City of Indio 188,800 188,800 188,800 City of Lake Elsinore 103.500 - - 103,500 103,500 City of Moreno Valley 225,000 150.000 225,000 150,000 75,000 City of Riverside 712,153 375,067 10,981 189,832 2,563,017 2,563,017 3,275,170 2,938,084 (178,851) 158,235 City of San Jacinto 145,000 75,297 69,703 - - 145,000 75,297 (69,703) City of Temecula. 132,000 132,000 - 132,000 132.000 City of Wildomar 553,280 - 553,280 - 553,280 County of Riverside: Auditor/Controller - - - 12,000 12.000 12,000 12,000 Road Department 1,099,000 416,550 48.568 - 1,099,000 416,550 (48,568) 633.882 • Palo Verde Valley Transit Agency 853,910 769,126 853,910 769,126 84.784 Commission 15,710,464 12,071,457 2,888,637 2,839,000 18.599,101 14,910,457 3,688,644 Riverside Transit Agency 34,242,813 22,714,397 - 34,242,813 22,714,397 11,528,416 SCAG - 534,755 534,755 534,755 534.755 - Sunline Transit Agency 11,094,894 10,258,596 - - 11,094,894 10,258,596 - 836,298 $ 3,650,357 $ 1.389,567 $ 40,775 $ 478,555 $ 68,349,712 $ 52,261.207 $ 3 435 392 $ 3,385.755 $ 75,435,461 $ 57,036,529 $ (437.780) $ 17,961.152 8 Local Transportation Fund of the County of Riverside, as Administered by the Riverside County Transportation Commission Schedule of Unclaimed Apportionments (Articles 4 and 8) Year Ended June 30, 2012 Fiscal Year 2011/12 Prior Fiscal Year Apportionment Amounts Claimed Unclaimed Apportionment Apportionment Amounts Claimed . Unclaimed Apportionment Total Unclaimed Interest Apportionment Allocation June 30, 2012 Western County: Rail Bus Coachella Valley Palo Verde Valley: Transit Unallocated Total transportation $ 10,263,249 $ 10,263,249 $ - $ 20,304,575 $ 1,808,208 $ 18,496,367 $ 74,712 $ 18,571,079 36,387,881 29,162,028 7,225,853 43,284,856 12,448,263 10,258,596 801,485 769,098 2,189,667 4,217,339 43,284,856 196,025 50,706,734 4,217,339 28,013 6,435,019 32,387 517,989 28 517,961 2,341 552,689 265,267 - 265,267 - 265,267 59,900,878 50,452,971 9,447,907 68,590,026 1,808,236 66,781,790 301,091 76, 530, 788 Auditor/Controller 12,000 12,000 - Commission administration 700,000 700,000 - - - - Commission planning 2,139,018 2,139,000 18 49,371 49,371 248 49,637 SCAG planning 534,755 534,755 - - - - - Total administration and planning 3,385,773 3,385,755 18 49,371 - 49,371 248 49,637 'Total apportionments $ 63,286,651 $ 53,838,726 $ 9,447,925 $ 68,639,397 $ 1,808,236 $ 66,831,161 $ 301,339 $ 76,580,425 9 Local Transportation Fund of the County of Riverside, as Administered by the Riverside County Transportation Commission Schedule of Unclaimed Apportionments (Article 3) Year Ended June 30, 2012 Unclaimed Unclaimed Apportionment Interest Apportionment July 1, 2011 Apportionment Reimbursements Disbursements Allocations June 30, 2012 Bicycle and pedestrian projects $ 3,270,222 $ 1,358,297 $ 40,775 $ 1,389,567 $ 16,492" $ 3,296,219 10 McGladrey LLP Independent Auditor's Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial statements Performed in Accordance With Government Auditing Standards Board of Commissioners Riverside County Transportation Commission Riverside, CA We have audited the financial statements of the Local Transportation Fund of the County of Riverside, as administered by the Riverside County Transportation Commission (the Commission), as of and for the year ended June 30, 2012, and have issued our report thereon dated November 5, 2012. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Internal Control Over Financial Reporting Management of the Commission is responsible for establishing and maintaining effective internal control over financial reporting. In planning and performing our audit, we considered the Commission's internal control over financial reporting as it relates to the Local Transportation Fund as a basis for designing our auditing procedures for the purpose of expressing our opinion on the Local Transportation Fund's financial statements, but not for the purpose of expressing an opinion on the effectiveness of the Commission's internal control over financial reporting. Accordingly, we do not express an opinion on the effectiveness of the Commission's internal control over financial reporting. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity's financial statements will not be prevented, or detected and corrected, on a timely basis. Our consideration of internal control over financial reporting was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control over financial reporting that might be deficiencies, significant deficiencies or material weaknesses. We did not identify any deficiencies in internal control over financial reporting that we consider to be material weaknesses, as defined previously. Compliance and Other Matters As part of obtaining reasonable assurance about whether the Local Transportation Fund's financial statements,, as administered by the Commission, are free of material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. This included those provisions of laws and regulations identified in the Transportation 11 Member or the flitd International network of independent accou nU ng, tax and consulting firms, Development Act of 1971, as amended, and corresponding regulations of the California Government Code. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. This report is intended solely for the information and use of management of the Commission, the Audit Ad Hoc Committee, the Board of Commissioners, and the State of California's Department of Transportation and State Controller's Office, and is not intended to be, and should not be, used by anyone other than these specified parties. /e.1-(404,7 G L� Irvine, CA November 5, 2012 12 State Transit Assistance Fund of the County of Riverside, as Administered by the Riverside County Transportation Commission Financial and Compliance Report Year Ended June 30, 2012 Assurance Tax Consulting Contents Independent Auditor's Report on the Financial Statements and Supplementary Information 1-2 Financial Statements Balance Sheet 3 Statement of Revenues, Expenditures and Change in Fund Balance 4 Notes to Financial Statements 5-7 Supplementary Information Schedule of Allocations and Disbursements Approved During the Year 8 Independent Auditor's Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance With Government Auditing Standards 9-10 McGladrey LEY McGladrey Independent Auditor's Report on the Financial Statements and Supplementary Information Board of Commissioners Riverside County Transportation Commission Riverside, CA We have audited the accompanying financial statements of the State Transit Assistance Fund of the County of Riverside, as administered by the Riverside County Transportation Commission (the Commission), as of and for the year ended June 30, 2012, as listed in the table of contents. These financial statements are the responsibility of the Commission's management. Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. As discussed in Note 1, the financial statements present only the State Transit Assistance Fund and do not purport to, and do not, present fairly the financial position of the Commission or the County of Riverside, California, as of June 30, 2012, and the change in their financial position for the year then ended, in conformity with accounting principles generally accepted in the United States of America. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of the State Transit Assistance Fund of the County of Riverside, as administered by the Commission, as of June 30, 2012, and the change in its financial position for the year then ended, in conformity with accounting principles generally accepted in the United States of America. In accordance with Government Auditing Standards, we have also issued our report dated November 5, 2012 on our consideration of the Commission's internal control over financial reporting and our tests of its compliance with certain provisions of laws, regulations, contracts, grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be considered in assessing the results of our audit. Management has omitted a Management's Discussion and Analysis that accounting principles generally accepted in the United States of America require to be presented to supplement the financial statements. Such missing information, although not a part of the financial statements, is required by the Governmental Accounting Standards Board, who ,considers it to be an essential part of financial reporting for placing the financial statements in an appropriate operational, economic or historical context. Our opinion on the financial statements is not affected by this missing information. 1 Member or dte RSM International network of Independent accounting, tax and consulting firms. Our audit was conducted for the purpose of forming an opinion on the financial statements of the State Transit Assistance Fund of the County of Riverside, as administered by the Commission. The schedule listed in the table of contents as supplementary information is presented for purposes of additional analysis and is not a required part of the financial statements. Such information is the responsibility of management and was derived from, and relates directly to, the underlying accounting and other records used to prepare the financial statements. The information has been subjected to the auditing procedures applied in the audit of the financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the financial statements or to the financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the information is fairly stated in all material respects in relation to the financial statements as a whole. Irvine, CA November 5, 2012 State Transit Assistance Fund of the County of Riverside, as Administered by the Riverside County Transportation Commission Balance Sheet June 30, 2012 Assets Cash and investments $ 40,883,542 Accounts receivable 3,414,503 Interest receivable 43,487 Total assets $ 44,341,532 Liabilities and Fund Balance Liabilities Accounts payable Total liabilities $ 486,999 486,999 Fund Balance Restricted allocations available for programming 25,052,385 Restricted for unclaimed allocations 18,802,148 Total fund balance 43,854,533 Total liabilities and fund balance $ 44,341,532 See Notes to Financial Statements. 3 State Transit Assistance Fund of the County of Riverside, as Administered by the Riverside County Transportation Commission Statement of Revenues, Expenditures and Change in Fund Balance Year Ended June 30, 2012 Revenues: Sales taxes $ 13,487,458 Interest 191,703 Total revenues 13,679,161 Expenditures: Transit 2,003,257 Net change in fund balance 11,675,904 Fund balance, beginning of year 32,178,629 Fund balance, end of year $ 43,854,533 See Notes to Financial Statements. 4 State Transit Assistance Fund of the County of Riverside as Administered by the Riverside County Transportation Commission Notes to Financial Statements Note 1. Nature of Operations and Summary of Significant Accounting Policies The Riverside County Transportation Commission (the Commission), in its capacity as the transportation planning agency for the County of Riverside, California (the County), is responsible for administering funds provided through the State Transit Assistance Program, which was created in 1979 under Chapter 161 (SB 620) of the California statutes to provide a second source of Transportation Development Act funding for the development of transit systems. The funds are derived from fuel sales tax revenue and are budgeted through legislation and appropriated to the State Controller's Office (State) for allocation to local agencies. The accounting policies of the Commission conform to accounting principles generally accepted in the United States as applicable to governmental units. A summary of the Commission's significant accounting policies is as follows: Presentation: The accompanying financial statements of the State Transit Assistance Fund (the Fund) are intended to present the financial position and the changes in financial position of only that portion of the governmental activities of the Commission that is attributable to the transactions of the Fund of the Commission. They do not purport to, and do not, present fairly the financial position of the Commission as of June 30, 2012 and the changes in its financial position, where applicable, for the year then ended, in conformity with accounting principles generally accepted in the United States. Basis of accounting: In accordance with the requirements for governmental funds, the modified accrual basis of accounting is followed in the Fund. Under the modified accrual basis of accounting, expenditures are recorded when they are expected to be liquidated with expendable available resources, and revenue is recorded when it becomes both measurable and available. "Measurable" means the amount of the transaction can be determined, and "available" means collectible within the current period or soon enough thereafter to be used to pay liabilities of the current period. For this purpose, the Commission considers revenues to be available if they are collected within 180 days of the end of the fiscal year. Those revenues susceptible to accrual include fuel sales tax revenue and interest revenue. Allocations to local agencies: State transit assistance funds are allocated to the operators within the County. Public Utilities Code (PUC) Section 99313 allocates funds to regional transportation planning agencies based on the ratio of area population to state population. PUC Section 99314 allocates funds to public operators based on their share of fares and local support to other operators in the state. The allocations must be made in a resolution adopted by the Commission. Cash: It is the Commission's policy to deposit all funds received in the Riverside County Pooled Investment Fund (RCPIF) for investment until the funds are required for disbursement. Interest income is earned while these funds are deposited. Fund balance restrictions: The Fund reports restricted fund balances to show the level of constraint governing the use of the funds. Restricted fund balances are restricted for specific purposes by enabling legislation. The restricted fund balance for allocations available for programming represents amounts apportioned but not allocated to claimants. The restricted fund balance for unclaimed allocations represents amounts allocated by the Commission and due to claimants but not yet paid, as claimants have not yet provided the appropriate claim documentation to the Commission as of June 30, 2012. Expenditures to claimants: Disbursements to claimants represent funds disbursed to transit operators that have met the eligibility requirements to receive State Transit Assistance Program funds per PUC Sections 99313 and 99314. All disbursements are to be used for transit purposes. 5 State Transit Assistance Fund of the County of Riverside as Administered by the Riverside County Transportation Commission Notes to Financial Statements Note 2. Cash and Investments Cash and investments at June 30, 2012 consist of the following: Cash and investments with County Treasurer Cash in bank $ 40,881,056 2,486 $ 40,883,542 The funds in the County Treasury are pooled with those of other entities in the RCPIF and invested in accordance with the County's investment policy. These pooled funds are carried at fair value. Fair value is based on quoted market prices and/or direct bids, when needed, from government dealers on some variable or floating rate items. The Commission is a voluntary participant in the pool. An Investment Oversight Committee has been established by the County, which acts as a regulator of the pool. As of June 30, 2012, the Commission had $40,881,056 invested in the RCPIF, with an average maturity of 485 days. Interest rate risk: While the Commission does not have a formal policy related to the interest rate risk of investments, the Commission's investment policy follows the California Government Code as it relates to limits on investment maturities as a means of managing exposure to fair value losses arising from increasing interest rates. Credit risk: As of June 30, 2012, the Commission's investment in the RCPIF was rated Aaa/MR1 by Moody's Investors Service and AAAN1 by Fitch Ratings. The Commission's investment policy only requires credit quality ratings for repurchase agreements, U.S. corporate debt, commercial paper, bankers' acceptances and certificates of deposit. 6 State Transit Assistance Fund of the County of Riverside as Administered by the Riverside County Transportation Commission Notes to Financial Statements Note 3. Fund Balance At June 30, 2012, amounts are restricted for apportioned and unallocated amounts and for unpaid allocations by geographic area. For Western County transit programs, commuter rail and bus allocations are in accordance with the Commission's policy. Restricted for allocations available for programming: Western County: Commuter rail $ 6,089,841 Bus 15,614,368 Coachella Valley 3,122,364 Palo Verde Valley 225,812 25,052,385 Restricted for unclaimed allocations: Western County: Commuter rail 100,000 City of Banning 596,119 City of Beaumont 725,983 City of Corona 1,067,668 City of Riverside 485,750 Riverside Transit Agency 12,335,639 Coachella Valley: SunLine Transit Agency 3,353,831 Palo Verde Valley: Palo Verde Valley Transit Agency 137,158 18,802,148 Total fund balance $ 43,854,533 7 Supplementary Information State Transit Assistance Fund of the County of Riverside, as Administered by the Riverside County Transportation Commission Schedule of Allocations and Disbursements Approved During the Year Year Ended June 30, 2012 California Code of Regulations Current Year Amount Section No. Recipient Allocation Disbursed Reference Western County: City of Banning $ - $ 196,790 6731 City of Beaumont 50,000 524,307 6731 City of Corona 752,000 6731 City of Riverside 80,750 6731 Riverside Transit Agency 4,213,408 639,145 6730 Total Western County 5,096,158 1,360,242 SunLine Transit Agency 2,779,135 475,679 6730 Palo Verde Valley Transit Agency 109,850 167,336 6730 $ 7,985,143 $ 2,003,257 8 McGladrey LIP a d rey Independent Auditor's Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance With Government Auditing Standards Board of Commissioners Riverside County Transportation Commission Riverside, CA We have audited the financial statements of the State Transit Assistance Fund of the County of Riverside, as administered by the Riverside County Transportation Commission (the Commission), as of and for the year ended June 30, 2012, and have issued our report thereon dated November 5, 2012. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Internal Control Over Financial Reporting Management of the Commission is responsible for establishing and maintaining effective internal control over financial reporting. In planning and performing our audit, we considered the Commission's internal control over financial reporting as it relates to the State Transit Assistance Fund as a basis for designing our auditing procedures for the purpose of expressing our opinion on the State Transit Assistance Fund's financial statements, but not for the purpose of expressing an opinion on the effectiveness of the Commission's internal control over financial reporting. Accordingly, we do not express an opinion on the effectiveness of the Commission's internal control over financial reporting. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity's financial statements will not be prevented, or detected and corrected, on a timely basis. Our consideration of internal control over financial reporting was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control over financial reporting that might be deficiencies, significant deficiencies or material weaknesses. We did not identify any deficiencies in internal control over financial reporting that we consider to be material weaknesses, as defined previously. 9 Member of the IISM International network of independent accruntl ng, tax and consnktrg firms. Compliance and Other Matters As part of obtaining reasonable assurance about whether the State Transit Assistance Fund's financial statements are free of material misstatement, as administered by the Commission, we performed tests of its compliance with certain provisions of laws, regulations, contracts and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. This included those provisions of laws and regulations identified in the Transportation Development Act of 1971, as amended, and corresponding regulations of the California Government Code. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. This report is intended solely for the information and use of management of the Commission, the Audit Ad Hoc Committee, the Board of Commissioners, and the State of California's Department of Transportation and State Controller's Office, and is not intended to be, and should not be, used by anyone other than these specified parties. Irvine, CA November 5, 2012 10 Proposition 1 B Rehabilitation, Safety and Security Project Accounts, Accounts of the Riverside County Transportation Commission Financial and Compliance Report Year Ended June 30, 2012 Assurance Tax m Consulting Contents Independent Auditor's Report on the Financial Statements and Supplementary Information 1-2 Financial Statements Balance Sheets 3 Statements of Revenues, Expenditures and Change in Account Fund Balance 4 Notes to Financial Statements 5-7 Supplementary Information Combining Balance Sheets —by Project 8-9 Combining Statements of Revenues, Expenditures and Change in Account Fund Balance —by Project 10-11 Independent Auditor's Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards 12-13 McGladrey LLF Independent Auditor's Report on the Financial Statements and Supplementary Information Board of Commissioners Riverside County Transportation Commission Riverside, CA We have audited the accompanying financial statements of the Proposition 1B Rehabilitation, Safety and Security Project Accounts, accounts of the Riverside County Transportation Commission (the Commission), as of and for the years ended June 30, 2012 and 2011 as listed in the table of contents. These financial statements are the responsibility of the Commission's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. As discussed in Note 1, the financial statements present only the Proposition 1B Rehabilitation, Safety and Security Project Accounts and do not purport to, and do not, present fairly the financial position of the Commission as of June 30, 2012 and 2011, and the changes in its financial position for the years then ended, in conformity with accounting principles generally accepted in the United States of America. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of the Proposition 1B Rehabilitation, Safety and Security Project Accounts of the Commission as of June 30, 2012 and 2011, and the changes in its financial position for the years then ended, in conformity with accounting principles generally accepted in the United States of America. As discussed in Note 3, the June 30, 2011 financial statements have been restated to correct for the omission of revenue and receivables. The previously issued auditor's report, dated October 31, 2011, is not to be relied on because the previously issued financial statements were misstated. The previously issued auditor's report is replaced by the auditor's report dated November 5, 2012 on the restated financial statements. In accordance with Government Auditing Standards, we have also issued our reports dated November 5, 2012 and October 31, 2011 on our consideration of the Commission's internal control over financial reporting and our tests of its compliance with certain provisions of laws, regulations, contracts, grant agreements and other matters. The purpose of those reports is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the internal control over financial reporting or on compliance. Those reports are an integral part of an audit performed in accordance with Government Auditing Standards and should be considered in assessing the results of our audits. 1 Member or the RSM International network of Independent account ng, tax and consulting firms, Management has not presented a Management's Discussion and Analysis, which accounting principles generally accepted in the United States of America require to be presented to supplement the financial statements. Such missing information, although not a part of the financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the financial statements in an appropriate operational, economic or historical context. Our opinion on the financial statements is not affected by this missing information. Our audits were conducted for the purpose of forming an opinion on the financial statements of the Proposition 1 B Rehabilitation, Safety and Security Project Accounts, accounts of the Commission, taken as a whole. The schedules, listed in the table of contents as supplementary information, are presented for purposes of additional analysis and are not a required part of the basic financial statements. Such information is the responsibility of management and was derived from, and relates directly to, the underlying accounting and other records used to prepare the basic financial statements. The schedules have been subjected to the auditing procedures applied in the audits of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the schedules are fairly stated in all material respects in relation to the basic financial statements as a whole. Irvine, CA November 5, 2012 2 Proposition 1 B Rehabilitation, Safety and Security Project Accounts, Accounts of the Riverside County Transportation Commission Balance Sheets June 30, 2012 and 2011 2012 2011 (as Restated) Assets PTMISEA CTSGP-CTAF Total PTMISEA CTSGP-CTAF Total Cash and investments in Riverside County Pooled Investment Fund $ 1,689,577 $ 642,757 $ 2,332,334 $ 2,034,052 $ 547,423 $ 2,581,475 Accounts receivable 1,490,476 1,490,476 Interest receivable 2,470 350 2,820 2,789 247 3,036 Total assets $ 1,692,047 $ 643,107 $ 2,335,154 $ 3,527,317 $ 547,670 $ 4,074,987 Liabilities and Account Fund Balance Liabilities Accounts payable Total liabilities $ 310,399 $ $ 310,399 $ $ $ 310,399 310,399 Account fund balance Restricted: Rail projects 1,381,648 643,107 2,024,755 3,527,317 547,670 4,074,987 Total account fund balance 1,381,648 643,107 2,024,755 3,527,317 547,670 4,074,987 Total liabilities and account fund balance (as restated) $ 1,692,047 $ 643,107 $ 2,335,154 $ 3,527,317 $ 547,670 $ 4,074,987 - See Notes to Financial Statements. 3 Proposition 1 B Rehabilitation, Safety and Security Project Accounts, Accounts of the Riverside County Transportation Commission Statements of Revenues, Expenditures and Change in Account Fund Balance Years Ended June 30, 2012 and 2011 2012 2011 (as Restated) PTMISEA CTSGP-CTAF Total PTMISEA CTSGP-CTAF Total Revenues: State allocations $ - $ 350,280 $ 350,280 $ 1,490,476 $ 347,496 $ 1,837,972 Interest 12,071 2,115 14,186 13,840 1,790 15,630 Total revenues 12,071 352,395 364,466 1,504,316 349,286 1,853,602 Expenditures: Rail 2,157,740 256,958 2,414,698 355,640 149,627 505,267 Excess of revenues over (under) expenditures (2,145,669) 95,437 (2,050,232) 1,148,676 199,659 1,348,335 Account fund balance, beginning of year (as restated) 3,527,317 547,670 4,074,987 2,378,641 348,011 2,726,652 Account fund balance, end of year (as restated) $ 1,381,648 $ 643,107 $ 2,024,755 $ 3,527,317 $ 547,670 $ 4,074,987 See Notes to Financial Statements. 4 Proposition 1 B Rehabilitation, Safety and Security Project Accounts, Accounts of the Riverside County Transportation Commission Notes to Financial Statements Note 1. Nature of Operations and Summary of Significant Accounting Policies On November 7, 2006, the voters of California approved the Highway Safety, Traffic Reduction, Air Quality, and Port Security Bond Act of 2006 (Bond Act or Proposition 1 B). Proposition 1 B included a state program of funding in the amount of $4 billion and $1 billion to be deposited in the Public Transportation Modernization, Improvement, and Service Enhancement Account (PTMISEA) and Transit System Safety, Security, and Disaster Response Account (TSSSDRA), respectively. The California Transit Security Grant Program —California Transit Assistance Fund (CTSGP-CTAF) is a TSSSDRA program. The PTMISEA funds, which are administered by the California Department of Transportation (Ca!trans), and the CTSGP- CTAF funds, which are administered by the California Emergency Management Agency (CaIEMA), are to be made available to project sponsors in California for eligible public transportation projects and related security and safety projects, respectively. The Riverside County Transportation Commission (the Commission) owns and operates five commuter rail stations and a transit center in Riverside County (the County). As a project sponsor, the Commission has applied for and obtained approval for PTMISEA and CTSGP-CTAF funds for various projects related to its commuter rail stations. These funds are accounted for in the Measure A Western County Rail Special Revenue Fund in project accounts (the Accounts). The significant revenue to the Accounts is derived from allocations approved by the Controller of the State of California (the Controller). The accounting policies of the Commission conform to accounting principles generally accepted in the United States of America as applicable to governmental units. A summary of the Commission's significant accounting policies is as follows: Presentation: The accompanying financial statements of the Accounts are intended to present the financial position and the changes in financial position of only that portion of the governmental activities of the Commission that is attributable to the transactions of the PTMISEA and CTSGP-CTAF, accounts of the Commission. They do not purport to, and do not, present fairly the financial position of the Commission as of June 30, 2012 and 2011, and the changes in its financial position for the years then ended, in conformity with accounting principles generally accepted in the United States of America. Basis of accounting: In accordance with the requirements for governmental funds, the modified accrual basis of accounting is followed in the PTMISEA and CTSGP-CTAF Accounts. Under the modified accrual basis of accounting, expenditures are recorded when they are expected to be liquidated with expendable available resources, and revenue is recorded when it becomes both measurable and available. "Measurable" means the amount of the transaction can be determined, and "available" means collectible within the current period, or soon enough thereafter to be used to pay liabilities of the current period. For this purpose, the Commission considers revenues to be available if they are collected within 180 days of the end of the current fiscal period. Those revenues susceptible to accrual include PTMISEA and CTSGP-CTAF allocations and interest revenue. For the year ended June 30, 2012, the Commission recognized revenues related to an allocation of $350,280 for the Station Security project. For the year ended June 30, 2011, the Commission recognized revenues related to allocations of $347,496 for the Station Security project, $1,290,476 for the Station Rehabilitation project, and $200,000 for the CCTV Operations Center project, for a total of $1,837,972. 5 Proposition 1B Rehabilitation, Safety and Security Project Accounts, Accounts of the Riverside County Transportation Commission Notes to Financial Statements Note 1. Nature of Operations and Summary of Significant Accounting Policies (Continued) Funding: Project sponsors may submit applications for funding of eligible transit capital projects to Caltrans or CaIEMA, which approve projects for funding related to PTMISEA and CTSGP-CTAF, respectively. PTMISEA eligible projects include rehabilitation, safety or modernization improvements; capital service enhancements or expansions; new capital projects; bus rapid transit improvements; and rolling stock procurement, rehabilitation, expansion or replacement. CTSGP-CTAF eligible projects include capital projects that provide increased protection against a security or safety threat; increase the capacity of transit operators to prepare for disaster -response transportation systems to move people, goods, emergency personnel and equipment in the aftermath of a disaster; and other allowable costs under California Government Code 16727(a). The Controller will disburse funds upon receipt of the approved PTMISEA and CTSGP-CTAF projects. Funds must be encumbered within three years of receipt and must be expended within three years of being encumbered. Cash: It is the Commission's policy to deposit all funds received in the Riverside County Pooled Investment Fund (RCPIF) for investment until the funds are required for disbursement. Interest income is earned while these funds are so deposited. Account fund balance restrictions: The Accounts report restricted account fund balances to show the level of constraint governing the use of the funds. Restricted account fund balances are restricted for specific purposes by third parties. Expenditures: Expenditures represent rail capital projects as identified in PTMISEA and CTSGP-CTAF applications submitted by the Commission. For the year ended June 30, 2012, the Commission incurred qualifying expenditures of $591,740 for the Perris Multimodal Facility project, $93 for the La Sierra Parking Lot project, $1,565,907 for the Rail Cars project, and $256,958 for the Station Security .project, for a total of $2,414,698. For the year ended June 30, 2011, the Commission incurred qualifying expenditures of $29,328 for the Perris Multimodal Facility project, $312,406 for the Station Rehabilitation project, $13,906 for the La Sierra Parking Lot project, and $149,627 for the Station Security project, for a total of $505,267. Transfers: Transfers represent the reallocation of PTMISEA and CTSGP-CTAF funds available from a rail capital project to another rail capital project following approval by the respective state agency. For the year ended June 30, 2012, the Commission transferred $1,291,855 from the Station Rehabilitation project, $84,524 from the La Sierra Parking Lot project, and $200,214 from the CCTV Operations Center project, for a total of $1,576,593, to the Rail Cars project as a result of approval from Caltrans in January 2012. Note 2. Cash and Investments With County Treasurer The funds in the RCPIF are pooled with those of other entities and invested in accordance with the County's investment policy. These pooled funds are carried at fair value. Fair value is based on quoted market prices and/or direct bids, when needed, from government dealers on some variable or floating rate items. The Commjssion is a voluntary participant in the pool. An Investment Oversight Committee has been established by the County, which acts as a regulator of the pool. 6 Proposition 16 Rehabilitation, Safety and Security Project Accounts, Accounts of the Riverside County Transportation Commission Notes to Financial Statements Note 2. Cash and Investments With County Treasurer (Continued) As of June 30, 2012 and 2011, the Accounts have $2,332,334 and $2,581,475, respectively, included in the Commission's investment with the RCPIF, with an average maturity of 438 days and 478 days, respectively. Interest rate risk: While the Commission does not have a formal policy related to the interest rate risk of investments, the Commission's investment policy follows the California Government Code as it relates to limits on investment maturities as a means of managing exposure to fair value losses arising from increasing interest rates. Credit risk: As of June 30, 2012 and 2011, the Commission's investment in the RCPIF was rated Aaa/MR1 by Moody's Investors Service and AAA/V1 by Fitch Ratings. The Commission's investment policy only requires credit quality ratings for repurchase agreements, U.S. corporate debt, commercial paper, bankers' acceptances and certificates of deposit. Note 3. Restatement of Account Fund Balance The account fund balance as of June 30, 2011, as previously reported, was restated to include $1,490,476 in PTMISEA revenues and receivables recorded in the Commission's accounting records for the year ended June 30, 2011, which were erroneously omitted from the Accounts' financial reporting. PTMISEA Account Fund Balance, as Originally Stated, June 30, 2011 Change PTMISEA Account Fund Balance, as Restated, June 30, 2011 $ 2,036,841 $ 1,490,476 $ 3,527,317 7 Supplementary Information Proposition 1B Rehabilitation, Safety and Security Project Accounts, Accounts of the Riverside County Transportation Commission Combining Balance Sheet -By Project June 30, 2012 PTMISEA CTSGP-CTAF Perris Multimodal Station La Sierra Rail CCTV Operations Station Assets Facility Rehabilitation Parking Lot Cars Center Total Security Total Cash and investments in Riverside County Pooled Investment Fund $ 310,119 $ 639,538 $ 729,272 $ 11,881 $ (1,233) $ 1,689,577 $ 642,757 $ 2,332,334 Interest receivable 280 - - 957 1,233 2,470 350 2,820 Total assets $ 310,399 $ 639,538 $ 729,272 $ 12,838 $ - $ 1,692,047 $ 643,107 $ 2,335,154 Liabilities and Account Fund Balance Liabilities Accounts payable Total liabilities Account Fund Balance Restricted: Rail projects Total account fund balance Total liabilities and account fund balance $ 310,399 $ 310,399 $ $ $ $ 310,399 $ $ 310,399 310,399 310,399 639,538 729,272 12,838 1,381,648 643,107 2,024,755 639,538 729,272 12,838 1,381,648 643,107 2,024,755 $ 310,399 $ 639,538 $ 729,272 $ 12,838 $ - $ 1,692,047 $ 643,107 $ 2,335,154 8 Proposition 1 B Rehabilitation, Safety and Security Project Accounts, Accounts of the Riverside County Transportation Commission Combining Balance Sheet —By Project June 30, 2011 (as Restated) PTMISEA CTSGP-CTAF Perris Multimodal Station La Sierra CCTV Operations Station Assets Facility Rehabilitation Parking Lot Center Total Security Total Cash and investments in Riverside County Pooled Investment Fund $ 588,937 $ 635,847 $ 809,268 $ - $ 2,034,052 $ 547,423 $ 2,581,475 Accounts receivable 1,290,476 - 200,000 1,490,476 1,490,476 Interest receivable 807 872 1,110 2,789 247 3,036 Total assets $ 589,744 $ 1,927,195 $ 810,378 $ 200,000 $ 3,527,317 $ 547,670 $ 4,074,987 Account Fund Balance Account Fund Balance Restricted: Rail projects Total account fund balance (as restated) 589,744 1,927,195 810,378 200,000 3,527,317 $ 589,744 $ 1,927,195 $ 810,378 $ 200,000 $ 3,527,317 9 547,670 4,074,987 547,670 $ 4,074,987 Other financing sources (uses): Transfers in Transfers out Total other financing sources (uses) Net change in account fund balance Account fund balance, beginning of year (as restated) Account fund balance, end of year Proposition 1B Rehabilitation, Safety and Security Project Accounts, Accounts of the Riverside County Transportation Commission Combining Statement of Revenues, Expenditures and Change in Account Fund Balance -By Project Year Ended June 30, 2012 PTMISEA Perris Multimodal Station La Sierra Facility Rehabilitation Parking Lot Rail CCTV Operations Cars Center Total Revenues: State allocations Interest Total revenues $ - $ 1,996 1,996 - $ 4,198 4,198 - $ 2,152 2,152 Expenditures: Rail 591,740 93 1,565,907 Excess of revenues over (under) expenditures (589,744) 4,198 3,418 (1,563,755) - 1,576,593 (1,291,855) (84,524) - $ 214 12,071 214 12,071 2,157,740 214 (2,145,669) 1,576,593 (200,214) (1,576,593) (1,291,855) (84,524) 1,576,593 (200,214) (589,744) (1,287,657) (81,106) 589,744 1,927,195 810,378 $ $ 639,538 $ 729,272 $ 10 12,838 12,838 $ (200,000) (2,145,669) CTSGP-CTAF Station Security $ 350,280 2,115 352,395 256,958 95,437 95,437 Total $ 350,280 14,186 364,466 2,414,698 (2,050,232) 1,576,593 (1,576,593) (2,050,232) 200,000 3,527,317 547,670 4,074,987 - $ 1,381,648 $ 643,107 $ 2,024,755 LL L9617L017$ OL9'Lb9 $ LLE'LZ9'£ $ 000'OOZ $ 9L£'068 $ 966'LZ6'L $ bbL'689 $ Z99'9ZL'Z L LO'SbE Lb9'9LE'Z 9Z6'868 999'bb6 890'91.9 9££'817£'L 699'66L 9L9'817L'L 000'OOZ (099'9) O179'Z96 (VLE'9Z) L9Z'909 LZ9'6b6 0179'99£ 906'E L Z09'299'L 98Z'617£ 96£1709'L 000'OOZ 99£'9 9017'ZL£ 9ZE'6Z 9176'176Z' L b 60'b 0E9'9L 06L'L Ob9'£L - 99E'9 OLb'b bL0'b Z2.6'L£9' L $ 961:1'Lb£ $ 9Lb'06V L $ 000'OOZ $ $ 9Lb'06Z' L $ - $ (pa}e}sai se) JeaA }o pua 'aoueleq pun} }un000y JeaA 40 6uiuw6aq 'aoueleq pun} }un000y aoueleq pun;;un000e ul °Bump laN He2:1 :sam}lpuadx3 sanuanaJ le;ol }Sala}ul suol}eoolle awls :sanuana�} le}ol A}unoas le;ol Ja;uaO lo-I 6upped uol}e}IIIgega i Alllloed uoiie}s suoRmadO Ai00 engs ei uone}s lepownInn swad d` 10-dOSlO d3Slnld (pa;e;sed se) 660Z `0S aunr papu3 JeaA ;oafoud Ag—aoueleg pund;un000y ul a6uego pue sain;lpuadx3 `sanuanaN luawa}e;g 6ululgwoO uolsslwwoO uonepodsue.0 AunoO aplsianm ay;;o s}unoaod `s;un000b;oafoad pue /(1a;eg `uol;eingeyam 86 uol;lsodad frlcGladrey LLP Gladrey Independent Auditor's Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance With Government Auditing Standards Board of Commissioners Riverside County Transportation Commission Riverside, CA We have audited the financial statements of the Proposition 1 B Rehabilitation, Safety and Security Project Accounts, accounts of the Riverside County Transportation Commission (the Commission), as of and for the years ended June 30, 2012 and 2011, and have issued our report thereon dated November 5, 2012. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Internal Control Over Financial Reporting Management of the Commission is responsible for establishing and maintaining effective internal control over financial reporting. In planning and performing our audit, we considered the Commission's internal control over financial reporting as it relates to the Proposition 1 B Rehabilitation, Safety and Security Project Accounts as a basis for designing our auditing procedures for the purpose of expressing our opinion on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the Commission's internal control over financial reporting. Accordingly, we do not express an opinion on the effectiveness of the Commission's internal control over financial reporting. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity's financial statements will not be prevented, or detected and corrected, on a timely basis. Our consideration of the internal control over financial reporting was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control over financial reporting that might be deficiencies, significant deficiencies or material weaknesses. We did not identify any deficiencies in internal control over financial reporting that we consider to be material weaknesses, as defined previously. 12 Memix f the 13SM internal tonal network of independent auountinxand titng firms, Compliance and Other Matters As part of obtaining reasonable assurance about whether the Proposition 1 B Rehabilitation, Safety and Security Project Accounts' financial statements, accounts of the Commission, are free of material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. This included those provisions of laws and regulations identified in the Transportation Development Act of 1971, as amended, and corresponding regulations of the California Government Code. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. This report is intended solely for the information and use of management of the Commission, the Audit Ad Hoc Committee, the Board of Commissioners, and the State of California's Department of Transportation and State Controller's Office, and is not intended to be, and should not be, used by anyone other than these specified parties. Irvine, CA November 5, 2012 13 Riverside County Transportation Commission Assurance - Tax Consulting Contents Schedule of Expenditures of Federal Awards 1 Note to Schedule of Expenditures of Federal Awards 2 Independent Auditor's Report on: Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance With Government Auditing Standards Compliance With Requirements That Could Have a Direct and Material Effect on Its Major Program and Internal Control Over Compliance in Accordance With OMB Circular A-133, and on the Schedule of Expenditures of Federal Awards 3-4 5-6 Schedule of Findings and Questioned Costs 7-8 Summary Schedule of Prior Year Audit Findings 9 Riverside County Transportation Commission Schedule of Expenditures of Federal Awards Year Ended June 30, 2012 Catalog of Federal Domestic Federal Grantor/Pass-Through Grantor/ Assistance Pass -Through Entity Federal Program or Cluster Title Number Identifying Number Expenditures U.S. Department of Transportation: Highway Planning and Construction Program: Pass -through State Department of Transportation: 60/215 East Junction 20.205* 07-31-082-01 $ 1,421 State Route 91 Utilities Relocation 20.205* 08-31-002-02 12,901,062 SR91/SR71 Junction 20.205" 08-31-033-02 302,408 RT79 Realign Study and Realignment 20.205" 08-72-112-03 119,760 Pass -through Orange County Transportation Authority: Regional Ridematching Services Project 20.205* 11-41-139-00/C-1-2877 59,503 Pass -through Ventura County Transportation Commission: Regional Ridematching 20.205* MOU RS0506/06-41-082-05 15,746 13,399,900 Pass -through State Department of Transportation: ARRA - 74/215 Interchange ARRA-20.205" 10-31-025-03 6,753,663 Total Highway Planning and Construction Program 20,153,563 Federal Transit, Formula Grant: Urbanized Area Formula: Direct Program, Perris Valley Line Total Federal Transit, Formula Grant 20.507 4,878,341 4,878,341 Public Transportation Research: Pass -through State Department of Transportation: Rising Stars in Transit 20.514 MOU M-004-10/10-25-089-00 9,342 Total Public Transportation Research 9,342 Job Access - Reverse Commute: Pass -through SunLine Transit Agency; JARC Coordination Services JARC Grant Pass -through Riverside Transit Agency: JARC Coordination Services Total Job Access - Reverse Commute New Freedom Program: Pass -through SunLine Transit Agency: Taxi Voucher Program New Freedom Pass -through Riverside Transit Agency: New Freedom Coordination Services Total New Freedom Program Total expenditures of federal awards " Denotes major program See Note to Schedule of Expenditures of Federal Awards. 20.516 20.516 20.516 CA-37-X 148-01 MOU 11-26-072-00 CA-37-X 158-00 6,540 25,959 23,824 56,323 20.521 CA-57-X063-01 3,239 20.521 CA-57-X068-00 10,509 1 13,748 $ 25,111,317 Riverside County Transportation Commission Note to Schedule of Expenditures of Federal Awards Note 1. Basis of Presentation and Summary of Significant Accounting Policy The accompanying Schedule of Expenditures of Federal Awards (the Schedule) includes the federal grant activity of the Riverside County Transportation Commission (the Commission) under programs of the federal government for the year ended June 30, 2012. The information in this Schedule is presented in accordance with the requirements of the Office of Management and Budget (OMB) Circular A-133, Audits of States, Local Governments and Non -Profit Organizations. Therefore, some amounts presented in this Schedule may differ from amounts presented in, or used in the preparation of, the basic financial statements. Because the Schedule presents only a selected portion of the operations of the Commission, it is not intended to, and does not, present the financial position of the Commission. The accompanying Schedule is presented on the modified -accrual basis of accounting. 2 McGladrey LLP G adre / Independent Auditor's Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance With Government Auditing Standards Board of Commissioners Riverside County Transportation Commission Riverside, CA We have audited the financial statements of the governmental activities, each major fund and the aggregate remaining fund information of the Riverside County Transportation Commission (the Commission) as of and for the year ended June 30, 2012, which collectively comprise the Commission's basic financial statements, and have issued our report thereon dated November 5, 2012. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Internal Control Over Financial Reporting Management of the Commission is responsible for establishing and maintaining effective internal control over financial reporting. In planning and performing our audit, we considered the Commission's internal control over financial reporting as a basis for designing our auditing procedures for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the Commission's internal control over financial reporting. Accordingly, we do not express an opinion on the effectiveness of the Commission's internal control over financial reporting. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity's financial statements will not be prevented, or detected and corrected, on a timely basis. Our consideration of internal control over financial reporting was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control over financial reporting that might be deficiencies, significant deficiencies or material weaknesses. We did not identify any deficiencies in internal control over financial reporting that we consider to be material weaknesses, as defined previously. 3 Member of the P,SMintematlona9netvrark fentaccoun;ing,tax and consulting firms. Compliance and Other Matters As part of obtaining reasonable assurance about whether the Commission's financial statements are free of material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. This included those provisions of laws and regulations identified in the Transportation Development Act of 1971, as amended, and corresponding regulations of the California Government Code. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. This report is intended solely for the information and use of the Board of Commissioners, the Audit Ad Hoc Committee, management, federal awarding agencies and pass -through entities, and is not intended to be, and should not be, used by anyone other than these specified parties. Irvine, CA November 5, 2012 4 McGladrey LLP a d rey Independent Auditor's Report on Compliance With Requirements That Could Have a Direct and Material Effect on Its Major Program and Internal Control Over Compliance in Accordance With OMB Circular A-133, and on the Schedule of Expenditures of Federal Awards Board of Commissioners Riverside County Transportation Commission Riverside, CA Compliance We have audited the Riverside County Transportation Commission's (the Commission) compliance with the types of compliance requirements described in the U.S. Office of Management and Budget (OMB) Circular A-133 Compliance Supplement that could have a direct and material effect on the Commission's major federal program for the year ended June 30, 2012. The Commission's major federal program is identified in the Summary of Auditor's Results section of the accompanying Schedule of Findings and Questioned Costs. Compliance with the requirements of laws, regulations, contracts and grants applicable to its major federal program is the responsibility of the Commission's management. Our responsibility is to express an opinion on the Commission's compliance based on our audit. We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and OMB Circular A-133, Audits of States, Local Governments and Non -Profit Organizations. Those standards and OMB Circular A-133 require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types of compliance requirements referred to above that could have a direct and material effect on the major federal program occurred. An audit includes examining, on a test basis, evidence about the Commission's compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion. Our audit does not provide a legal determination on the Commission's compliance with those requirements. In our opinion, the Commission complied, in all material respects, with the compliance requirements referred to above that could have a direct and material effect on its major federal program for the year ended June 30, 2012. Internal Control Over Compliance The management of the Commission is responsible for establishing and maintaining effective internal control over compliance with requirements of laws, regulations, contracts and grants applicable to federal programs. In planning and performing our audit, we considered the Commission's internal control over compliance with the requirements that could have a direct and material effect on a major federal program in order to determine the auditing procedures for the purpose of expressing our opinion on compliance and to test and report on internal control over compliance in accordance with OMB Circular A-133, but not for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, we do not express an opinion on the effectiveness of the Commission's internal control over compliance. 5 Member of the fl5M International network of Independent accounting, tax and consult! firms. A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis. A material weakness in internal control over compliance is a deficiency, or combination of deficiencies, in internal control over compliance, such that there is reasonable possibility that material noncompliance with a type of compliance requirement of a federal program will not be prevented, or detected and corrected, on a timely basis. Our consideration of internal control over compliance was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control over compliance that might be deficiencies, significant deficiencies or material weaknesses. We did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses, as defined above. Schedule of Expenditures of Federal Awards We have audited the financial statements of the governmental activities, each major fund and the aggregate remaining fund information of the Commission as of and for the year ended June 30, 2012, which collectively comprise the Commission's basic financial statements, and have issued our report thereon dated November 5, 2012, which contained an unqualified opinion on those financial statements. Our audit was conducted for the purpose of forming our opinions on the financial statements that collectively comprise the Commission's financial statements. The accompanying Schedule of Expenditures of Federal Awards is presented for the purposes of additional analysis as required by OMB Circular A-133, and is not a required part of the financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the financial statements. The information has been subjected to the auditing procedures applied in the audit of the financial statements and certain other procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the financial statements or to the financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the Schedule of Expenditures of Federal Awards is fairly stated, in all material respects, in relation to the financial statements taken as a whole. This report is intended solely for the information and use of the Board of Commissioners, the Audit Ad Hoc Committee, management, federal awarding agencies and pass -through entities, and is not intended to be, and should not be, used by anyone other than these specified parties. jv(C����titQef..7 G Gf' Irvine, CA November 5, 2012 6 Riverside County Transportation Commission Schedule of Findings and Questioned Costs Year Ended June 30, 2012 I. Summary of Auditor's Results Financial Statements Type of Auditor's Report Issued: Unqualified Internal control over financial reporting: Material weakness(es) identified? Yes X No • Significant deficiency(ies) identified that are not considered to be material weaknesses? Yes X None Reported Noncompliance material to financial statements noted? Yes X No Federal Awards Internal control over major programs: • Material weakness(es) identified? Yes X No • Significant deficiency(ies) identified that are not considered to be material weaknesses? Yes X None Reported Type of auditor's report issued on compliance for major programs: Unqualified • Any audit findings disclosed that are required to be reported in accordance with Section 510(a) of OMB Circular A-133? Identification of major programs: CFDA Number(s) 20.205 Yes X No Name of Federal Program or Cluster Highway Planning and Construction Dollar threshold used to distinguish between Type A and Type B programs: $ 753,340 Auditee qualified as low -risk auditee? X Yes 7 Riverside County Transportation Commission Schedule of Findings and Questioned Costs (Continued) Year Ended June 30, 2012 II. Financial Statement Findings A. Internal Control Matters None reported. B. Compliance Findings None reported. III. Findings and Questioned Costs for Federal Awards A. Internal Control Matters None reported. B. Compliance Findings None reported. 8 Riverside County Transportation Commission Summary Schedule of Prior Year Audit Findings Year Ended June 30, 2012 There were no audit findings reported for the year ended June 30, 2011. McG(adrey LLr' I1 cGlad y Independent Auditor's Report Board of Commissioners Riverside County Transportation Commission Riverside, CA We have audited, in accordance with auditing standards generally accepted in the United States of America, and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States, the financial statements of the governmental activities, each major fund and the aggregate remaining fund information of the Riverside County Transportation Commission (the Commission) as of and for the year ended June 30, 2012, which collectively comprise the Commission's basic financial statements, and have issued our report thereon, dated November 5, 2012. In connection with our audit, nothing came to our attention that caused us to believe that the Commission failed to comply with the terms, covenants, provisions or conditions of Section 6.2(g) and 6.2(1) contained in the Reimbursement Agreement, dated April 1, 2012, with Union Bank, N.A., a national banking association organized under the laws of the United States of America, and Bank of Tokyo -Mitsubishi UFJ, Ltd., acting through its New York Branch, a national banking association organized under the laws of the United States of America, relating to the Commercial Paper Notes (Limited Tax Bonds) Series A and Series B, respectively, insofar as they relate to accounting matters. However, our audit was not directed primarily toward obtaining knowledge of such noncompliance. This report is intended solely for the information and use of the Board of Commissioners and management of the Commission, Union Bank, N.A. and Bank of Tokyo -Mitsubishi UFJ, Ltd., and is not intended to be, and should not be, used by anyone other than these specified parties. Irvine, CA November 5, 2012 member or the ltSMintematIonalnetorkofInderAndernaccounting:taxandeonsut'.ing(isms, Riverside County Transportation Commission Report to the Audit Ad Hoc Committee November 26, 2012 November 26, 2012 To the Audit Ad Hoc Committee Riverside County Transportation Commission Riverside, CA We are pleased to present this report related to our audit of the basic financial statements and compliance of Riverside County Transportation Commission (the Commission) for the year ended June 30, 2012. This report summarizes certain matters required by professional standards to be communicated to you in your oversight responsibility for the Commission’s financial and compliance reporting process. This report is intended solely for the information and use of the Audit Ad Hoc Committee, the Board of Commissioners and management, and is not intended to be and should not be, used by anyone other than these specified parties. It will be our pleasure to respond to any questions you have regarding this report. We appreciate the opportunity to continue to be of service to the Commission. Contents Required Communications ..................................................................................................................... 1-2 Summary of Accounting Estimates...................................................................................................... 3-4 Exhibit A - Certain Written Communications between Management and Our Firm Representation Letter Required Communications Statement on Auditing Standards No. 114 requires the auditor to communicate certain matters to keep those charged with governance adequately informed about matters related to the financial statement audit that are, in our professional judgment, significant and relevant to the responsibilities of those charged with governance in overseeing the financial reporting process. The following summarizes these communications. Area Comments Auditor’s Responsibility Under Professional Standards Our responsibility under auditing standards generally accepted in the United States of America; Government Auditing Standards issued by the Comptroller General of the United States; the provisions of the Single Audit Act, OMB Circular A-133 and OMB’s Compliance Supplement has been described to you in our arrangement letter dated June 8, 2012 and in our meeting with you on June 25, 2012. Accounting Practices Adoption of, or Change in, Accounting Policies Management has the ultimate responsibility for the appropriateness of the accounting policies used by the Commission. The Commission early implemented GASB Statement No. 63, Financial Reporting of Deferred Outflows of Resources, Deferred Inflows of Resources, and Net Position and GASB Statement No. 65, Items Previously Reported As Assets and Liabilities during the current period. Significant or Unusual Transactions We did not identify any significant or unusual transactions or significant accounting policies in controversial or emerging areas for which there is a lack of authoritative guidance or consensus. Alternative Treatments Discussed with Management We did not discuss with management any alternative treatments within generally accepted accounting principles for accounting policies and practices related to material items during the current audit period Management Judgments and Accounting Estimates Summary information about the process used by management in formulating particularly sensitive accounting estimates and about our conclusions regarding the reasonableness of those estimates is in the attached “Summary of Accounting Estimates.” Financial Statement Disclosures In our meeting with you, we will discuss with you the following item as it relates to the neutrality, consistency, and clarity of the disclosures in the financial statements: • Impact of implementing new GASBs during the year Area Comments Audit Adjustments There were no audit adjustments made by us to the original trial balance presented to us to begin our audit. However, we were provided six adjustments by management during the course of the audit and those adjustments were evaluated by us as part of our audit. Disagreements with Management We encountered no disagreements with management over the application of significant accounting principles, the basis for management’s judgments on any significant matters, the scope of the audit, or significant disclosures to be included in the financial statements. Consultations with Other Accountants We are not aware of any consultations management had with other accountants about accounting or auditing matters Significant Issues Discussed with Management No significant issues arising from the audit were discussed or were the subject of correspondence with management. Difficulties Encountered in Performing the Audit We did not encounter any difficulties in dealing with management during the audit. Certain Written Communications Between Management and Our Firm Copies of certain written communications between our Firm and the management of the Commission are attached as Exhibit A. Riverside County Transportation Commission Summary of Accounting Estimates Year Ended June 30, 2012 Accounting estimates are an integral part of the preparation of financial statements and are based upon management’s current judgment. The process used by management encompasses their knowledge and experience about past and current events and certain assumptions about future events. You may wish to monitor throughout the year the process used to compute and record these accounting estimates. The following describes the significant accounting estimates reflected in the Commission’s June 30, 2012 basic financial statements: Area Accounting Policy Estimation Process Comments Useful Lives of Long Lived Assets The estimated useful lives of assets generally have the following ranges: rail stations 10- 30 years; office furniture and equipment three to five years; vehicles five years. These assets are depreciated using the straight-line method. Land and rail operating easements are not depreciated and construction in process is not depreciated until ready for service and capitalized. Management reviews for changes in the useful lives of long-lived assets by evaluating prominent events or changes in circumstances affecting capital assets to determine whether impairment of a capital asset has occurred. A capital asset is considered impaired if both the decline in the service utility of the capital asset is large in magnitude and the event or change in circumstances is outside the normal life cycle of the capital asset. Common indicators of impairment include evidence of physical damage where effort is needed to restore service utility, enactment or approval of laws or regulations setting standards that We tested the reasonableness of information underlying management’s estimate. Based on our procedures, we concluded that assigned useful lives of capital assets are reasonable. the capital asset would not be able to meet, technological development or evidence of obsolescence, a change in the manner or expected duration of use of a capital asset, or construction stoppage. Pension Obligation and Postemployment Benefits Other Than Pensions Pension and postemployment benefits are recorded at cost based on an estimated annual contribution rate. For postemployment benefits other than pensions, management utilizes an actuarial consulting firm to perform an evaluation using the entry age actuarial cost method. Management reviewed and approved the actuarial assumptions and calculations used to determine the postemployment benefit costs. For pension obligations, management utilizes CalPERS actuaries for cost sharing multiple- employer plans. A cost sharing multiple- employer plan is a pooling arrangement whereby risks, rewards and benefit costs are shared and not attributed individually to any single employer. Management reviewed the actuarial assumptions and calculations used to determine the pension costs. We tested the reasonableness of the information underlying the actuarial evaluations. Based on our procedures, we concluded that the costs recorded are reasonable. Exhibit A - Certain Written Communications b etween Management and Our Firm 4080 Lemon Street, 3rd Floor • Riverside, CA Mailing Address: P. O. Box 12008 • Riverside, CA 92502-2208 (951) 787-7141 • Fax (951) 787-7920 • www.rctc.org Riverside County Transportation Commission November 5, 2012 McGladrey LLP 18401 Von Karman Ave., 5th Floor Irvine, CA 92612 In connection with your audit of the basic financial statements of the Riverside County Transportation Commission (Commission), California as of and for the year ended June 30, 2012; the financial statements of the State Transit Assistance Fund (STAF) and Local Transportation Fund (LTF) of the County of Riverside, as administered by the Commission, as of and for the year ended June 30, 2012; and the financial statements of the Proposition 16 Rehabilitation and Security Project Accounts (Prop 16), accounts of the Commission, as of and for the year ended June 30, 2012; we confirm that we are responsible for the fair presentation in the financial statements of financial position, changes in financial position, and cash flows in conformity with accounting principles generally accepted in the United States of America. We confirm to the best of our knowledge and belief, as of November 5, 2012 the following representations made to you during your audit. 1. The financial statements referred to above are fairly presented in conformity with accounting principles generally accepted in the United States of America. 2. We have identified for you all organizations that are a part of this reporting entity or with which we have a relationship, as these organizations are defined in Section 2100 of the Governmental Accounting Standards Board's Codification of Governmental Accounting and Financial Reporting Standards, that are component units and jointly governed organizations in which we participated. In that regard, the Service Authority for Freeway Emergencies (SAFE) is a component unit of the Commission. The jointly governed organizations that the Commission is a member of are the Southern California Regional Rail Authority (SCRRA) and the Riverside Orange Corridor Authority. 3. We have identified for you all of our funds and governmental functions. 4. We have properly classified all funds and activities. 5. We have properly determined and reported the major governmental funds based on the required quantitative criteria. We have determined the Commercial Paper and Sales Tax Bonds Capital Projects funds and Debt Service fund to be major for public interest reasons. We believe that all judgmentally determined major funds are particularly important to the financial statement users. 6. We are responsible for compliance with laws and regulations applicable to the Commission, LTF, STAF, and Prop 1B, including adopting, approving, and amending budgets. McGladrey LLP November 5, 2012 Page 2 7. We have identified and disclosed to you all laws and regulations that have a direct and material effect on the determination of financial statement amounts including legal and contractual provisions for reporting specific activities in separate funds. 8. We have made available to you: a. All financial records and related data of all funds and activities, including those of all special funds, programs, departments, projects, activities, etc., in existence at any time during the period covered by your audit. b. All minutes of the meetings of the Board of Commissioners and committees of board members or summaries of actions of recent meetings for which minutes have not yet been prepared. 9. There have been no communications from grantors, lenders, other funding sources, or regulatory agencies concerning noncompliance with: a. Statutory, regulatory, or contractual provisions or requirements. b. Financial reporting practices that could have a material effect on the financial statements. 10. We have no knowledge of fraud or suspected fraud affecting the Commission involving: a. Management or employees who have significant roles in internal control. b. Others where the fraud could have a material effect on the financial statements. 11. We acknowledge our responsibility for the design and implementation of programs and controls to provide reasonable assurance that fraud is prevented and detected. 12. We have no knowledge of any allegations of fraud or suspected fraud affecting the Commission received in communications from employees, former employees, analysts, regulators, or others. 13. We are aware of no significant deficiencies, including material weaknesses, in the design or operation of internal controls that could adversely affect the entity's ability to record, process, summarize, and report financial data. 14. There have been no communications from regulatory agencies concerning noncompliance with, or deficiencies in, financial reporting practices. 15. We have no plans or intentions that may materially affect the carrying value or classification of assets and liabilities. 16. The following have been properly recorded and/or disclosed in the financial statements: a. Related -party transactions, including those with SAFE for which the Commission is considered accountable, jointly governed organizations in which the Commission participates, and those with STAF and LTF, as defined in Section 2100 of the Governmental Accounting Standards Board's Codification of Governmental Accounting and Financial Reporting Standards, and interfund transactions, including interfund accounts and advances receivable and payable, all of. which have been recorded in accordance with the economic substance of the transaction and appropriately classified and reported. There are no related party transactions other than those noted above. McGladrey LLP November 5, 2012 Page 3 b. Security agreements in effect under the Uniform Commercial Code. c. Revenue which was pledged as collateral for debt liability. d. The fair value of investments. e. Amounts of contractual obligations for construction and purchase of real property or equipment not included in the liabilities or encumbrances recorded on the books. f. Debt issue provisions. g. All leases and material amounts of rental obligations under long-term leases. h. All significant estimates and material concentrations known to management which are required to be disclosed in accordance with the AICPA's Statement of Position No. 94-6, Disclosure of Certain Significant Risks and Uncertainties. Significant estimates are estimates at the balance sheet date which could change materially within the next year. Concentrations refer to volumes of business, revenues, available sources of supply, or markets for which events could occur which would significantly disrupt normal finances within the next year. i. Authorized but unissued bonds and/or notes. j. Risk financing activities. k. Derivative financial instruments. I. The effect on the financial statements of Statement No. 60, Accounting and Financial Reporting for Service Concession Arrangements; Statement No. 61, The Financial Reporting Entity: Omnibus, an amendment of GASB Statements No. 14 and 34; Statement No. 62, Codification of Accounting and Financial Reporting Guidance Contained in Pre -November 30, 1989 FASB and AICPA Pronouncements; Statement No. 66, Technical Correction — 2012 — an amendment of GASB Statements No. 10 and No. 62; and Statement No. 68, Accounting and Financial Reporting for Pensions, which have been issued, but which we have not yet adopted. m. Deposits and investment securities categories of risk. n. Credit facility related to variable rate demand bonds. In addition, we believe that it is proper to show the principal and interest maturities in Note 6 using the synthetic fixed interest rates created by the two interest rate swap derivative instruments versus the effective rates on the bonds that are paid to the bondholders. o. Net positions and fund balance classifications. p. Issuance of $20,000,000 of commercial paper notes in September 2012. 17. We are responsible for making the accounting estimates included in the financial statements. Those estimates reflect our judgment based on our knowledge and experience about past and current events and our assumptions about conditions we expect to exist and courses of action we expect to take. In that regard, adequate provisions have been made to reduce receivables to their estimated net collectable amounts and for pension obligations, post -retirement benefits other than pensions, and deferred compensation agreements attributable to employee services rendered through June 30, 2012. McGladrey LLP November 5, 2012 Page 4 18. There are no: a. Material transactions that have not been properly recorded in the accounting records underlying the financial statements. b. Violations or possible violations of laws or regulations whose effects should be considered for disclosure in the financial statements or as a basis for recording a loss contingency. In that regard, we specifically represent that we have not been designated as, or alleged to be, a "potentially responsible party" by the Federal Environmental Protection Agency or any equivalent state agencies in connection with any environmental contamination. c. Other material liabilities or gain or loss contingencies that are required to be accrued or disclosed by Statement of Financial Accounting Standards No. 5 and/or GASB Statement No. 10. d. Allocations to STAF or LTF claimants which are in violation of the statute of limitations as outlined in the Transportation Development Act. e. Guarantees, whether written or oral, under which the Commission is contingently liable. f. Arrangements with financial institutions involving compensating balances or other arrangements involving restrictions on cash balances. g. Agreements to repurchase assets previously sold. h. Other liens or encumbrances on assets or any assets which were pledged as collateral for any liability or which were subordinated in any way. i. Liabilities which are subordinated in any way to any other actual or possible liabilities. j. Debt issue repurchase options or agreements, or sinking funds debt repurchase ordinance requirements. k. Special or extraordinary items. I. Arbitrage rebate liabilities. m. Impairments of capital assets. n. Investments, intangible or other assets that have permanently declined in value. o. Provisions necessary for risk retention, including uninsured losses or loss retentions attributable to events occurring through June 30, 2012 and/or for expected retroactive premium adjustments applicable to periods through June 30, 2012. P. Inventories. q. Material losses to be sustained as a result of purchase commitments or service commitments. r. Environmental cleanup obligations. s. Lines of credit or similar arrangements. 19. There are no unasserted claims or assessments that our lawyer has advised us are probable of assertion and must be disclosed in accordance with Statement of Financial Accounting Standards No. 5 and/or GASB Statement No. 10. McGladrey LLP November 5, 2012 Page 5 20. We have no direct or indirect, legal or moral obligation for any debt of any organization, public or private, that is not disclosed in the financial statements. 21. We have satisfactory title to all owned assets. 22. We have complied with all aspects of contractual agreements that would have a material effect on the financial statements in the event of noncompliance. 23. Net positions (net investment in capital assets; restricted; and unrestricted) and fund balance restrictions, commitments and assignments are properly classified and, if applicable, approved. 24. Expenses or expenditures have been appropriately classified in or allocated to functions and programs in the statement of activities, and allocations have been made on a reasonable basis. 25. Revenues are appropriately classified in the statements of activities within program revenues and general revenues. 26. Capital assets, including amounts for right-of-way, are properly capitalized, reported, and depreciated if applicable. 27. Land and land improvements capitalized represent purchases for projects that will either stay in capital assets or be converted to intangible assets. In addition, as of June 30, 2012, it is too early to determine if any amounts reported in capital assets will be transferred to Ca!trans. All amounts capitalized into land have title in the name of the Commission. 28. The restatement of the Proposition 1B Rehabilitation, Safety and Security Project Accounts financial statements as of and for the year ended June 30, 2011 due to the adjustment for additional revenue and related receivabl a that was excluded from these financial statements, but properly recorded in the financial statements for the year ended June 30, 2011, is appropriate. We agree with the restatement of the previously issued financial statements. In that regard: a. The restatement corrects an error in those financial statements. b. We were not aware of the error when those financial statements were issued. c. We are not aware of any other errors in those financial statements. d. We do not believe it is necessary to recall those financial statements and all known users of those financial statements will receive a copy of the current year's financial statements and independent auditor's report. 29. The restatement of the June 30, 2011 basic financial statements due to the implementation of GASB Statement No. 65, Items Previously Reported as Assets and Liabilities, is appropriate. We agree with the restatement of the previously issued financial statements. In that regard: a. The implementation of GASB Statement No. 65 requires that fund balance as of June 30, 2011 be restated to account for the write-off of unamortized debt issuance fees in those financial statements. b. The restatement of fund balance at June 30, 2011 was due to a change in accounting principle and not a correction of an error. McGladrey LLP November 5, 2012 Page 6 In connection with your audit, conducted in accordance with Government Auditing Standards, we confirm: 30. We are responsible for: a. Compliance with the laws, regulations, and provisions of contracts and grant agreements applicable to the Commission. b. Establishing and maintaining effective internal control over financial reporting. 31. We have identified and disclosed to you: a. All laws, regulations, and provisions of contracts and grant agreements that have a direct and material effect on the determinations of financial statement amounts or other financial data significant to audit objectives. b. We are aware of no violations (or possible violations) of laws, regulations, and provisions of contracts and grant agreements whose effects should be considered for disclosure in the auditor's report on noncompliance. 32. We are aware of no instances of fraud, illegal acts, violations of provisions of contracts or grant agreements, or abuse. 33. We have a process to track the status of audit findings and recommendations. 34. We have identified for you previous audits, attestation engagements, performance audits, or other studies related to the objectives of the audit being undertaken and the corrective action taken to address significant findings and recommendations. In connection with your audit of federal awards conducted in accordance with OMB Circular A-133, Audits of States, Local Governments, and Non -Profit Organizations, we confirm: 35. We are responsible for complying, and we have complied, with the requirements of OMB Circular A-133. 36. We are responsible for the schedule of expenditures of federal awards and we have prepared the schedule in accordance with Circular A-133 section 301b. We have included expenditures made during the period being audited for all awards provided by federal agencies in the form of grants, federal cost - reimbursement contracts, loan guarantees, property (including donated surplus property), cooperative agreements, interest subsidies, insurance, food commodities, direct appropriations, and other assistance. We further acknowledge that: a. The methods of measurement or presentation have not changed from those used in the prior period or, if the methods of measurement have changed, we have provided you with the reasons for such changes. b. We are responsible for understanding and complying with the compliance requirements related to the preparation of the schedule. 37. We are responsible for establishing and maintaining, and have established and maintained, effective internal control over compliance for federal programs that provides reasonable assurance that the Commission is managing federal awards in compliance with laws, regulations, and the provisions of contracts or grant agreements that could have a material effect on our federal programs. McGladrey LLP November 5, 2012 Page 7 38. We are responsible for complying with the requirements of laws, regulations, and the provisions of contracts and grant agreements related to each of the Commission's federal programs and have complied, in all material respects, with those requirements. 39. We have identified and disclosed to you the requirements of laws, regulations, and the provisions of contracts and grant agreements that are considered to have a direct and material effect on our major program. 40. There are no instances in which the Commission has its own interpretation of any compliance requirements that have varying interpretations. 41. We have made available all contracts and grants agreements (including amendments, if any) and any other correspondence relevant to federal programs and related activities that have taken place with federal agencies. 42. There are no amounts questioned or known noncompliance with the requirements of federal awards, including those resulting from other audits or program reviews. 43. We have charged costs to federal awards in accordance with applicable cost principles. 44. We have made available to you all documentation related to the compliance requirements, including information related to federal program financial reports and claims for advances and reimbursements. 45. Federal program financial reports and claims for advances and reimbursements are supported by the books and records from which the basic financial statements have been prepared. 46. The copies of federal program financial reports provided to you are true copies of the reports submitted, or electronically transmitted, to the federal agency or pass -through entity, as applicable. 47. We have no subrecipients of federal awards. 48. We are responsible for and have accurately prepared the summary schedule of prior audit findings to include all findings required to be included by Circular A-133. 49. We have accurately completed the appropriate sections of the data collection form. 50. We have disclosed all contracts or other agreements with service organizations. We are not aware of noncompliance at these organizations. 51. We have disclosed whether any changes in internal control over compliance or other factors that might significantly affect internal control, including any corrective action taken by management with regard to significant deficiencies (including material weaknesses), have occurred subsequent of the date as of which compliance is audited. No such changes in internal control over compliance have been made. 52. There have been no material modifications to our joint powers agreement with the SCRRA that would materially impact the Commission's participation. 53. All designated employees have filed the required Statements of Economic Interest as outlined in the Commission's conflict of interest code. 54. Amounts restricted for transit purposes for LTF total $92,088,969 as of June 30, 2012. Amounts restricted for allocations available for programming total $25,052,385 and restricted for unclaimed allocations total McGladrey LLP November 5, 2012 Page 8 $18,802,148. All allocated amounts have been approved by the Riverside County Transportation Commission. 55.In May 2006, the Commission entered into a cooperative agreement, Riverside Orange Corridor Authority, with the Orange County Transportation Authority (OCTA) and the Transportation Corridor Agencies to jointly exercise the common powers of the parties to manage geotechnical studies regarding the Riverside Orange Corridor. The Commission is the recipient and administering entity of federal and state funds as may be necessary to accomplish this work, and the three agencies will share in meeting the local agency matching requirements. As of June 30, 2012, the Commission was not required to make any contributions. 56. In January 2006, the Commission authorized the TUMF Special Revenue fund to advance $3,114,600 to the State to replace state and federal funding for the State Route (SR) 91/Green River interchange project. During the year ended June 30, 2012 there were no additional advances to the State from the TUMF Special Revenue fund for the SR-91/Green River interchange project. In December 2004, the Commission authorized the TUMF Special Revenue fund to advance $13,046,000 to the State to replace state and federal funding for the SR-60 widening project from Interstate(1) 15 to Valley Way. The final agreement with the State resulted in a reduction of the Commission's commitment to $8,881,000. During the year ended June 30, 2012, there were no additional advances to the State from the TUMF Special Revenue fund for the SR-60 widening project. Cumulative advances as of June 30, 2012 for the SR-91/Green River interchange and SR-60 widening projects were $3,114,600 and $8,640,939, respectively. The advances are to be repaid in the form of a commitment of future State funding on TUMF projects; in various actions since 2006, the Commission approved programming the County's share of State funding to the SR-91/Van Buren interchange, a TUMF project, and the future State funding commitment to the I-215/SR-60 East Junction high occupancy vehicle lane connectors project. The California Transportation Commission (CTC) allocated the funds for the SR-91/Van Buren interchange and the 60/215 East Junction projects in October 2009 and May 2010, respectively. 57. In February 2005, the Commission authorized the issuance of tax-exempt commercial paper notes in an amount not to exceed $200,000,000 for the primary purpose of financing right of way and mitigation land acquisition and project development costs of capital projects under the 2009 Measure A. From inception through 2008, the Commission issued commercial paper notes aggregating $110,005,000, which were refinanced in June 2008 by the 2008 Sales Tax Revenue Bonds. During 2009 the Commission issued $110,000,000 in commercial paper notes, of which $53,716,000 were retired by the 2009 Sales Tax Revenue Bonds. During 2010 and in September 2010, the Commission issued commercial paper notes of $27,000,000 and $20,000,000, respectively. In December 2010 the Commission retired $103,284,000 representing all of the outstanding commercial paper notes with the proceeds of the 2010 Bonds. In February 2012, the Commission issued commercial paper notes of $40,000,000, which were retired in March 2012 with commercial paper proceeds. At June 30, 2012, there were no outstanding commercial paper notes. The source of revenue to repay the commercial paper notes and any subsequent long-term debt refinancing is the 2009 Measure A sales tax. Interest is payable on the respective maturity dates of the commercial paper notes, which is up to 270 days from the date of issuance. The maximum allowable interest rate on the commercial paper notes is 12%. McGladrey LLP November 5, 2012 Page 9 As a requirement for the issuance of the commercial paper notes, the Commission entered into a $190,000,000 irrevocable direct draw letter of credit and reimbursement agreement with Bank of America, N.A. as credit and liquidity support for the commercial paper notes. In February 2010, the agreement was amended for $121,500,000 an d extended through March 2012; the agreement was terminated upon expiration. In April 2012, the Commission entered into two $60,750,000 irrevocable direct draw letter of credit and reimbursement agreements, for an aggregate amount of $121,500,000, with Union Bank, N.A. and The Bank of Tokyo -Mitsubishi UFJ, Ltd., acting through its New York Branch (collectively, the Banks), as credit and liquidity support for the commercial paper notes through October 2014. Funds are drawn under the letters of credit to pay debt service on the commercial paper notes, and the Commission is required to reimburse the Banks for such drawings. Amounts drawn on the letter of credit and not reimbursed within 30 days are not due until five years after the date of such draw. Accordingly, the commercial paper notes are classified as long-term liabilities in the Commission's government -wide financial statements. There were no unreimbursed draws by the Commission on these letters of credit during the year ended June 30, 2012, nor were there any amounts outstanding under these letters of credit agreement at June 30, 2012. 58. From time to time, the Commission's agreements with various third parties are modified or amended to adjust for cost overruns and other factors. These modifications are considered to be ordinary courses of action and are incorporated into the Commission's budgetary process as revisions to the original adopted budget. 59. Based on GASB Statement No. 54, the Commission considers the Commercial Paper and Sales Tax Bonds to be classified as capital project funds. These funds will be used primarily to purchase or construct capital or intangible assets that will be recorded in the Commission's financial statements. The Commission has incurred certain costs related to the 91 Corridor Improvement Project (CIP) and 1-15 CIP that have been recorded in the Measure A Western County Measure A special revenue fund that were funded with transfers from these capital project funds. In the government -wide statements, the capital costs have been capitalized as construction in progress; it is too early to determine the amounts reported in capital assets that will be transferred to Caltrans. 60. As a means to achieve a greater level of interest rate stability, specifically rising interest rates that would negatively impact cash flows, the Commission entered into two forward -starting interest rate swaps in August 2006 for a total notional amount of $185,000,000. The counterparty for the first swap ($100,000,000 notional amount) is Bank of America, N.A (Bank of America), and the counterparty for the second swap ($85,000,000 notional amount) is Deutsche Bank AG (Deutsche Bank). Under the swap agreements which become effective on October 1, 2009, the Commission will pay Bank of America and Deutsche Bank (Counterparties) a fixed rate of 3.679% and 3.206%, respectively, for twenty years, the term of the 2009 Sales Tax Revenue Bonds; the Counterparties will pay the Commission a floating rate equal to 67% of the one -month London Interbank Offer Rate (LIBOR). The Commission is exposed to interest rate risk on its pay fixed, receive variable interest rate swaps. As LIBOR decreases, the District's net payments on the swaps increase. The Commission is exposed to basis risk on the swaps because the variable rate payments received by the Commission are based on an index other than interest rates the Commission pays on hedged variable rate debt. For the year ended June 30, 2012, the Commission's 2009 Sales Tax Revenue Bonds, Series A, which are hedged by the Deutsche Bank McGladrey LLP November 5, 2012 Page 10 swap, and 2009 Sales Tax Revenue Bonds, Series B and C, which are hedged by the Bank of America swap, had weighted average variable rates of 0.12% and 0.14%, respectively. Over the same period, the weighted average of 67% of one -month LIBOR was 0.16%, an approximate 4.0 and 2.0 basis point gain for the Commission related to the Deutsche Bank and Bank of America swaps, respectively. The swaps may be terminated by the Commission or its Counterparties if the other party fails to perform under the terms of the contract or at the Commission's option to terminate the transaction. If, at any time of termination, the swap is in liability position, the Commission would be obligated to pay the counterparty the liability position. As of June 30, 2012, the negative fair values for the $100,000,000 swap with Bank of America and the $85,000,000 swap with Deutsche Bank were estimated by an independent third -party to be $20,601,744 and $13,810,320, respectively. Therefore, if the swaps were terminated on June 30, 2012, the Commission would have paid a termination payment of $20,601,744 and $13,810,320 to Bank of America and Deutsche Bank, respectively, for a total termination payment of $34,412,064. The termination payments that would have been paid by the Commission if the swaps were terminated on June 30, 2012 are a result of the change in interest rate levels and certain interest rate relationships. The rates used to calculate the fixed swap payment owed by the Commission to the Counterparties are 3.679% for Bank of America and 3.206% for Deutsche Bank. As of June 30, 2012, this fixed rate was higher than the current rate for a swap of identical terms and conditions. The Commission has implemented GASB Statement No. 53, Accounting and Financial Reporting for Derivative Instruments. This standard prescribes the accounting and financial reporting required for derivative instruments that hedge identified financial risks. If the derivative instrument is determined to be effective in reducing the identified exposure, hedge accounting provides that changes in the fair value of the hedging instrument (interest rate swap) be reported as either deferred inflows or deferred outflows in the statement of net assets. To evaluate the effectiveness of the swaps, the Synthetic Instrument Method prescribed by the standard was employed. The resulting analysis indicates the swaps are effective as hedging instruments. Refer to the footnotes to the financial statements for disclosures related to the Commission's interest rate swaps. 61. With respect to supplementary information presented in relation to the financial statements as a whole: a. We acknowledge our responsibility for the presentation of such information. b. We believe such information, including its form and content, is fairly presented in accordance with accounting principles generally accepted in the United States of America. c. The methods of measurement or presentation have not changed from those used in the prior period. d. There were no significant assumptions or interpretations used regarding the measurement or presentation of such information. 62. With respect to required supplementary information including the management's discussion and analysis, budgetary comparison schedules and funding progress for postretirement health care presented as required by the accounting principles generally accepted in the United States of America to supplement the basic financial statements: a. We acknowledge our responsibility for the presentation of such required supplementary information. McGladrey LLP November 5, 2012 Page 11 b. We believe such required supplementary information is measured and presented in accordance with guidelines prescribed by accounting principles generally accepted in the United States of America. c. The methods of measurement or presentation have not changed from those used in the prior period. d. There were no significant assumptions or interpretations used regarding the measurement or presentation of such information. 63. We are responsible for determining that significant events or transactions that have occurred since the balance sheet date and through November 5, 2012, have been recognized or disclosed in the financial statements. No events or transactions other than those disclosed in the financial statements have occurred subsequent to the balance sheet date and through November 5, 2012 that would require recognition or disclosure in the financial statements. We further represent that as of November 5, 2012, the financial statements were complete in a form and format that complied with accounting principles generally accepted in the United States of America, and all approvals necessary for issuance of the financial statements have been obtained. 64. In connection with your engagement to perform, in accordance with attestation standards established by the American Institute of Certified Public Accountants, specified agreed -upon procedures with respect to the Appropriations Limit Calculation for the year ended June 30, 2012 for the purpose of assisting the Commission in meeting the requirements of Section 1.5 of Article XIII-B of the California Constitution, we confirm to the best of our knowledge and belief, the following representations made to you during the course of your engagement: a. We understand that we have the responsibility for meeting the requirements under Section 1.5 of Article XIII-B of the California Constitution and the selection of the criteria against which the Appropriations Limit Calculation is capable of being evaluated. b. We understand that we have the responsibility for determining that such criteria are appropriate for our purposes. c. There are no known matters contradicting the Appropriations Limit Calculation or any communication from regulatory agencies affecting the Appropriations Limit Calculation. d. We have made available to you all records and related data relevant to the subject matter and the agreed -upon procedures. 65. We understand that we have the responsibility for meeting the requirements with the terms, covenants, provisions or conditions of Section 6.2(g) and 6.2(1) contained in the Reimbursement Agreement dated April 1, 2012 with Union Bank and Bank of Tokyo -Mitsubishi UFJ, Ltd. relating to the Commercial Paper Notes (Limited Tax Bonds) Series A and Series B. There are no known matters in meeting these requirements or any communication from regulatory agencies that we did not meet these requirements. During the course of your audit, you may have accumulated records containing data that should be reflected in our books and records. All such data have been so reflected. Accordingly, copies of such records in your possession are no longer needed by us. McGladrey LLP November 5, 2012 Page 12 RIVER E COUNTY TRANSPORTATION COMMISSION Anne Mayer, Executive Director Theresia Trevino, Chief Financial Officer McGladrzy LIP Independent Accountant's Report on Applying Agreed -Upon Procedures Board of Commissioners Riverside County Transportation Commission Riverside, CA We have performed the procedures enumerated below to the accompanying Appropriations Limit Calculation of the Riverside County Transportation Commission (the Commission) for the year ended June 30, 2012. These procedures, which were agreed to by the Commission and the League of California Cities (as presented in the publication entitled Agreed -upon Procedures Applied to the Appropriations Limitation Prescribed by Article Xlll-B of the California Constitution), were performed solely to assist the Commission in meeting the requirements of Section 1.5 of Article XIII-B of the California Constitution. The Commission's management is responsible for the Appropriations Limit Calculation. This agreed -upon procedures engagement was conducted in accordance with attestation standards established by the American Institute of Certified Public Accountants. The sufficiency of these procedures is solely the responsibility of those parties specified in this report. Consequently, we make no representation regarding the sufficiency of the procedures described below, either for the purpose for which this report has been requested or for any other purpose. The procedures performed and our findings were as follows: 1. We obtained the completed internal calculations from management and compared the limit and annual adjustment factors included in those calculations to the limit and annual adjustment factors that were adopted by a resolution of the Board of Commissioners. We also compared the population and inflation options included in the aforementioned calculations to those that were selected by a recorded vote of the Board of Commissioners. Finding: No exceptions were noted as a result of our procedures. 2. For the accompanying Appropriations Limit Calculation, we added line A, last year's limit, to line E, total adjustments, and compared the resulting amount to line F, this year's limit. Finding: No exceptions were noted as a result of our procedures. 3. We compared the current year information presented in the accompanying Appropriations Limit Calculation to the supporting calculations described in item 1 above. Finding: No exceptions were noted as a result of our procedures. 1 Member of the R5Minternational nftvorkofincie enti<ntaccountin a,ta<and c. suiting firms, 4. We compared the prior year Appropriations Limit presented in the accompanying Appropriations Limit Calculation to the prior year Appropriations Limit adopted by the Board of Commissioners during the prior year. Finding: No exceptions were noted as a result of our procedures. We were not engaged to, and did not, conduct an audit, the objective of which would be the expression of an opinion on the accompanying Appropriations Limit Calculation of the Commission. Accordingly, we do not express such an opinion. Had we performed additional procedures, other matters might have come to our attention that would have been reported to you. No procedures have been performed with respect to the determination of the appropriations limit for the base year, as defined by Article XIII-B of the California Constitution. This report is intended solely for the information and use of the Board of Commissioners and management of the Commission, and is not intended to be, and should not be, used by anyone other than these specified parties. However, this report is a matter of public record and its distribution is not limited. LLB Irvine, CA November 5, 2012 2 Riverside County Transportation Commission Appropriations Limit Calculation Year Ended June 30, 2012 Amount Source A. Last year's limit $ 318,967,208 B. Adjustment factors: 1. Population change 1.0181000 State Finance 2. Per capita change 1.0251000 State Finance Total adjustments [(B.1 x B.2)-1.0] 0.0436543 C. Annual adjustment 13,924,293 (BxA) D. Other adjustments: 1. Lost responsibility (-) 2. Transfer to private (-) 3. Transfer to fees (-) 4. Assumed responsibility (+) Subtotal E. Total adjustments 13,924,293 (C+D) F. This year's limit $ 332,891,501 (A+E) 3 AicGlarlrey LLP IVI Glad ey Independent Accountant's Report on Applying Agreed -Upon Procedures Board of Commissioners Riverside County Transportation Commission and Board of Directors, Inland Transportation Services Riverside, CA We have performed the procedures enumerated below, which were agreed to by the Riverside County Transportation Commission (the Commission) and Inland Transportation Services (ITS), solely to assist the specified parties with respect to the purchase of gift cards or coupon incentives and the payment of incentives related to the Commuter Assistance Program (the Program) administered by ITS for the year ended June 30, 2012. This agreed -upon procedures engagement was conducted in accordance with attestation standards established by the American Institute of Certified Public Accountants. The sufficiency of these procedures is solely the responsibility of those parties specified in this report. Consequently, we make no representation regarding the sufficiency of the procedures described below, either for the purpose for which this report has been requested or for any other purpose. As background information for this engagement to perform agreed -upon procedures, we were provided with: Resolution No. 03-025, Resolution of the Commission Amending Guidelines for the Administration of the Measure A Funded Commuter Incentive Projects as part of its Program, and Agreement No. 00-41-021-10, Amendment No. 10 to the Agreement for Development and Management of Commuter Assistance Between ITS and the Commission, entered into as of July 1, 2008. In addition, we received an explanation of the ITS registration process with the employer and employee from the program manager of ITS. The procedures and related findings are as follows: 1. We obtained a list of all disbursements recorded by the Commission to vendors for the purchase of gift cards or coupon incentives for the year ended June 30, 2012 and selected a sample of all eight disbursements for selected testing (see Exhibit 1). Our procedures and findings related to Exhibit 1 are as follows: a. We agreed the amount recorded as disbursed by the Commission to canceled checks or warrants without exception. b. We agreed the amount recorded as disbursed to ITS to check requests without exception. c. We agreed the amount recorded and the payee to the log of requested gift cards maintained by ITS without exception. 2. We obtained the "Rideshare Payment" Reports that list recorded disbursements made to recipients by ITS for the year ended June 30, 2012 and judgmentally selected a sample. of 10 items for selected testing (see Exhibit 2). Our selected testing and findings related to Exhibit 2 are as follows: a. We obtained the Employer Information Form and Statement of Participation (SOP) for the employer indicating its participation with ITS as a participant. No exceptions were noted. Member of the RSM Intern tonal network of independent acco'urine; tax and consulting firms. Riverside County Transportation Commission Page 2 b. We obtained the Employee Enrollment Form indicating the employee is registered with ITS as a participant. No exceptions were noted. c. We agreed ITS' disbursement to the employee claim form, noting proper approval of the claim, without exception. d. We recalculated the number of days the employee participated in each rideshare mode and the incentive earned for each rideshare mode and agreed those totals to the amounts listed on the monthly incentive claim form without exception. e. We agreed the daily amount of reimbursement per mode of transportation to the amount approved in Resolution No. 03-025 without exception. f. We agreed the recorded disbursement amount per the Incentive Payment Report to the employer transmittal letter without exception. 3. We compared ITS' total gift card inventory balance from gift card inventory schedules provided by ITS as of June 30, 2012 to the actual gift cards maintained by ITS by judgmentally selecting the following four gift cards for recounting: (a) Vons and Stater Bros gift cards under the RCTC Rideshare Advantage program, noting an inventory balance of $1,490 and $7,541, respectively; (b) Stater Bros gift cards under the SANBAG Option Rideshare Program, noting an inventory balance of $5,446 and (c) Vons gift cards under the Coachella Valley Association of Governments (CVAG), noting an inventory balance of $4,110. No exceptions were noted. The gift card inventory balance per the inventory schedules as of June 30, 2012 is $26,657. We were not engaged to, and did not, conduct an audit, the objective of which would be the expression of an opinion on the specified elements, accounts or items thereof related to the program. Accordingly, we do not express such an opinion. Had we performed additional procedures, other matters might have come to our attention that would have been reported to you. This report is intended solely for the information and use of the Board of Commissioners and management of the Riverside County Transportation Commission, and the Board of Directors and management of Inland Transportation Services and is not intended to be, and should not be, used by anyone other than these specified parties. Irvine, CA November 5, 2012 Riverside County Transportation Commission and Inland Transportation Services (Contractor) Schedule of Selected Purchases of Gift Cards by the Contractor Fiscal Year Ended June 30, 2012 Project Option Option Option CVAG, Advantage & Option CVAG, Advantage & Option Advantage & Option CVAG, Advantage & Option CVAG, Advantage & Option Vendor Stater Bros Stater Bros Stater Bros Vons Vons Vons Vons Vons Voucher Date Amount 11/7/2011 $ 15,000 2/15/2012 35,000 6/25/2012 55,000 9/13/2011 6,750 11 /7/2011 15,000 2/15/2012 40,000 3/14/2012 5,000 6/25/2012 70,000 Exhibit 1 Check # 53555 54542 55889 52964 53559 54545 54806 55895 Riverside County Transportation Commission and Inland Transportation Services (Contractor) Schedule of Selected Employee Incentive Payments Made by the Contractor Fiscal Year Ended June 30, 2012 Employee Initials L.G. B.G. T.L. J.B. C.F. J.G. M.M. J.G. S.S I.W. Employer Name A Check America California Baptist University March Air Reserve Base Fresh and Easy -Campus Meat Amtrak WRSO VA Loma Linda Healthcare Systems Yellow Roadway Corp - SB Wal-Mart SC #3464 Ace Hotel & Swim Club Westin Mission Hills Resort & Spa Commute Disbursement Incentive Type Mode Vons Vons Stater Bros Target Vons Vons Vons Stater Bros Vons Stater Bros Carpool Walk Carpool Public Bus Carpool Carpool Carpool Carpool Carpool Carpool Exhibit 2 Date Amount 11/14/11 04/11/12 04/16/12 02/09/12 01 /23/12 10/17/11 10/07/11 12/07/ 11 03/14/12 09/14/11 $ 115 140 115 150 110 130 140 135 135 135 4080 Lemon Street, 3rd Floor • Riverside, CA Mailing Address: P. O. Box 12008 • Riverside, CA 92502-2208 (951) 787-7141 • Fax (951) 787-7920 • www.rctc.org Riverside County Transportation Commission November 5, 2012 Board of Commissioners Riverside County Transportation Commission Riverside, California The Comprehensive Annual Financial Report (CAFR) of the Riverside County Transportation Commission (Commission) for the year ended June 30, 2012 is hereby submitted for your receipt and acceptance. The CAFR is presented in three sections consisting of Introductory, Financial, and Statistical. The Financial Section includes the audited financial statements and other supplementary information and the independent auditor's report on those financial statements. Management of the Commission is responsible for the financial statements and other information presented in the CAFR. As the Executive Director and Chief Financial Officer of the Commission, we have reviewed the CAFR for the year ended June 30, 2012. Based on our knowledge, the CAFR does not contain any untrue statement of a material fact or omit to state a material fact necessary in order to make the statements made in the CAFR not misleading with respect to the period covered by the CAFR. Additionally, based on our knowledge, the financial statements and other financial information included in the CAFR fairly present in all material respects the financial condition and results of operations of the Commission as of and for the year ended June 30, 2012. Theresia Trevino, Chief Financial Officer 4080 Lemon Street, 3rd Floor • Riverside, CA Mailing Address: P. O. Box 12008 • Riverside, CA 92502-2208 (951) 787-7141 • Fax (951) 787-7920 • www.rctc.org Riverside County Transportation Commission November 5, 2012 Board of Commissioners Riverside County Transportation Commission Riverside, California In connection with the submission of the Comprehensive Annual Financial Report (CAFR) of the Riverside County Transportation Commission (Commission) for the year ended June 30, 2012, as the management and Directors of the Commission, we understand that we are responsible for the operations and activities of the Commission's programs, projects, and administration. Accordingly, we hereby make the following representations based upon our knowledge. We are responsible for establishing and maintaining controls and procedures related to these operations and activities. We have designed such controls and procedures to ensure that material information is made known to us, particularly during the year ended June 30, 2012. The controls and procedures have been effective for the year ended June 30, 2012 and through the date of this letter. There have been and are no significant deficiencies in the design or operation of internal controls regarding financial reporting for the same period which could adversely affect the Commission's ability to record, process, summarize and report financial data. There have been and are no material weaknesses in internal controls. There have been no significant changes in internal control or in other factors that could significantly affect internal controls subsequent to June 30, 2012. Management also recognizes its responsibility for fostering a strong ethical climate so that the Commission's affairs are conducted according to the highest standards of personal and organizational conduct. In connection with this responsibility, we are not aware of any fraud, whether or not material, that involves management or other employees who have a significant role in the Commission's internal controls. Cathy BechtProject D velopment Director 0 ra, Project De_ ivery Director al Services Director Deputy Executive Director Michael Blomquist, TolYii'rograms Director Theresia Trevino, Chief Financial Officer • • • RIVERSIDE COUNTY TRANSPORTATION COMMISSION DATE: December 12, 2012 TO: Riverside County Transportation Commission FROM: Audit Ad Hoc Committee Theresia Trevino, Chief Financial Officer THROUGH: Anne Mayer, Executive Director SUBJECT: Federal Transit Administration Triennial Review AUDIT AD HOC COMMITTEE AND STAFF RECOMMENDATION: This item is for the Commission to receive and file a report on the Federal Transit Administration's (FTA) FY 2011/12 Triennial Review of the Commission. BACKGROUND INFORMATION: During August 2012, the FTA conducted its triennial review of the Commission. The triennial review is an assessment of compliance with federal requirements determined by the examination of grant management practices and program implementation. The triennial review has been performed on a regular basis every three years. There was one deficiency resulting from the FY 2012 FTA Triennial Review; the deficiency was in the technical area related to quarterly grant reporting. Staff reviewed and revised the grants management procedures to ensure timely filing, identification of issues impacting schedule and budget, as well as change orders and claims in excess of $100,000. Additionally, a grant was deobligated, and unliquidated balances on outstanding grants in the grants management system are reconciled to the accounting system. Attachment: FY 2012 FTA Triennial Review Report Agenda Item 7C 9 • • • U.S. Department of Transportation Federal Transit Administration Ms. Anne Mayer Executive Director Riverside County Transportation Commission P.O. Box 12008 Riverside, California 94502 .t>~/ REGION IX Arizona, California, Hawaii, Nevada, Guam American Samoa, Northern Mariana Islands SEP 0 5 2012 201 Mission Street Suite 1650 San Francisco, CA 94105-1839 415-744-3133 415-744-2726 (fax) Re: FY 2012 Trie1mial Review Final Report Dear Ms. MayW./ Enclosed is a copy of the final report of the Federal Transit Administration's (FTA) Triennial Review of the Riverside County Transportation Commission (RCTC) as required by 49 USC 5307 (i). Although less exacting than an audit, the Triennial Review is the PTA's assessment ofRCTC's compliance with federal requirements determined by the examination of grant management practices and program implementation. The Trie1mial Review examines 24 areas. RCTC is not an operating transit organization and as such only 18 of the areas were applicable. At the time of the review, no deficiencies were found in accordance with the FTA requirements in 17 ofthe 18 areas. Deficiencies were found in one area: Technical. There were no repeat findings from the last review. The deficiencies and corrective actions to be taken to attain full compliance are described in the report. Please convey our appreciation to your staff for the assistance and cooperation they provided to the FTA review team. If you have any questions or comments, please contact Roxana Hernandez of my staff She can be reached at (415) 744-2658 or Roxana.Hemandez@dot.gov. Sincerely, .. f[J)j/ -( ( ' (.:.:,._Leslie T. Roger~ ~ Regional Administrator Enclosure cc: Sheldon Peterson, Rail Manager, RCTC John Benoit, Chairman, RCTC Henry Nickel, Rail Analyst, RCTC 10 • • • FINAL REPORT FY2012 TRIENNIAL REVIEW of the Riverside County Transportation Commission (RCTC) Riverside, California Recipient ID: 5807 Desk Review: November 3, 2011 Site Visit: August 6-7,2012 August 2012 Prepared for the Federal Transit Administration Region IX San Francisco, California by CDIIDCI Joint Venture 11 • Table of Contents I. TRIENNIAL REVIEW BACKGROUND ................................................................................ ] II. REVIEW PROCESS ................................................................................................................. 1 Ill. DESCRIPTION OF THE GRANTEE ....................................................................................... 2 IV. RESULTS OF THE REVIEW .................................................................................................. 3 1. Legal ............................................................................................................................ 3 2. Financial ...................................................................................................................... 3 3. Technical ..................................................................................................................... 4 4. Satisfactory Continuing Control .................................................................................. 5 5. Maintenance ................................................................................................................ 5 6. Procurement .................................................................................................................. 5 7. Disadvantaged Business Enterprise (DBE) ................................................................. 5 8. Buy America ................................................................................................................ 6 9. Debarment and Suspension··········································································'··············· 6 10. Lobbying ..................................................................................................................... 6 11. Planning/Program of Projects ...................................................................................... 6 12. Title VI ........................................................................................................................ 7 13. Public Comment on Fare and Service Changes .......................................................... 7 14. HalfFare ...................................................................................................................... 7 • 15. ADA······························'····························································································· 7 16. Charter Bus .................................................................................................................. 8 17. School Bus ................................................................................................................... 8 18. National Transit Database (NTD) ............................................................................... 8 19. Safety and Security ...................................................................................................... 8 20. Drug-Free Workplace .................................................................................................. 9 21. Drug and Alcohol Program ......................................................................................... 9 22. Equal Employment Opportunity (EEO) .................................................................... 10 23. ITS Architecture ........................................................................................................ 10 24. American Recovery and Reinvestment Act (ARRA) ................................................ 10 V. SUMMARY OF FINDINGS AND CORRECTIVE ACTIONS ............................................. 11 VI. TRANSIT SECURITY EXPENDITURES ............................................................................. 13 VII .ATTENDEES .......................................................................................................................... 14 • 12 • • • I. TRIENNIAL REVIEW BACKGROUND II. The United States Code, chapter 53 of title 49, requires the Federal Transit Administration (FTA) of the United States Department ofTransportation (USDOT) to perform reviews and evaluations of Urbanized Area Formula Grant activities at least every three years. This requirement is contained in 49 U.S.C. 5307(i). 1. At least once every three years, the Secretary shall review and evaluate completely the performance of a recipient in carrying out the recipient's program, specifically referring to compliance with statutory and administrative requirements and the extent to which actual program activities are consistent with the activities proposed under subsection (d) of this section and the planning process required under sections 5303-5306 of this title. 2. The Secretary may take appropriate action consistent with the review, audit and evaluation under this subsection, including making an appropriate adjustment in the amount of a grant or withdrawing the grant. The Triennial Review includes a review of the grantee's compliance in 24 areas. The basic requirements for each of these areas are summarized below. This report presents the findings from the Riverside County Transportation Commission (RCTC) of Riverside, California. This review was performed in accordance with FT A procedures (published in FTA Order 901 0.1B, April 5, 1993) and included preliminary reviews of documents on file at the Region IX Office in San Francisco and on-site discussions and review ofthe procedures, practices, and records of RCTC as deemed necessary. The review concentrated primarily on procedures and practices employed during the past three years; however, coverage was extended to earlier periods as needed to assess the policies in place and the management of grants. During the site visit, administrative and statutory requirements were discussed, documents were reviewed, and facilities were toured. Specific documents examined during the Triennial Review are available in FTA's and RCTC's files. REVIEW PROCESS The desk review was conducted in the Region IX Office on November 3, 2011. Following the desk review, a review package was sent to RCTC advising it of the site visit and indicating additional information that would be needed and issues that would be discussed. The site visit to RCTC occurred on August 6-7,2012. The individuals participating in the review are listed in Section VII of this report. At the entrance conference, the purpose of the Triennial Review and the review process were discussed. During the site visit, administrative and statutory requirements were discussed and documents were reviewed. RCTC's transit facilities were toured to provide 13 an overview of activities related to FTA-funded projects. A sample of maintenance records for FTA-funded facilities was examined during the site visit. Upon completion ofthe review, an exit conference was held with RCTC staff to discuss findings, corrective actions, and schedules. This information is summarized in the table in Section V of this report. A draft copy of this report was provided to RCTC at the exit conference. III. DESCRIPTION OF THE GRANTEE Formed in 1976, the Riverside County Transportation Commission (RCTC) is a special district governed by a 34-member board consisting of one representative from each city in Riverside County, all five County supervisors, and one non-voting state representative. The Commission provides short-range transportation planning and programming for Riverside County, which includes administration ofthe Local Transportation Fund (LTF) and the State Transit Assistance (STA) program. The LTF is derived from a 1;4 cent State sales tax and the ST A funds are derived from a statewide sales tax on gasoline and diesel fuel. The RCTC was empowered in 1988 (Measure A) to collect a one-half of one percent sales tax for the purposes of improving the transportation system of the County. Measure A was extended in 2002 for an additional 30 years. In 1990 the California legislature required the RCTC and transportation commissions of the counties of Los Angeles, Orange, and San Bernardino to join together and jointly develop a plan for regional transit services within the multi-county region. The effort resulted in the formation in August 1991 of the Southern California Regional Rail Authority (SCRRA), a Joint Powers Agency (JPA). The SCRRA plans, designs, constructs, and administers the operation of the regional passenger rail lines servicing the counties ofLos Angeles, Orange, Riverside, San Bernardino, and Ventura. The SCRRA operates the regional rail system Metrolink. The RCTC primarily passes local, state, and federal funds directly to SCRRA for operation and capital support of Metrolink. Also, RCTC has directly participated in the construction management of the La-Sierra rail station and the North Corona rail station and parking structure. In addition, RCTC is the project lead for the Perris Valley Line (PVL) Metrolink Extension and will use federal funds for the development and construction of the service. There is a Federal interest in the PVL stations and the North Main Corona parking facility. RCTC does not directly operate any rail service. There are three commuter rail lines that directly serve western Riverside County including the Inland Empire-Orange County Line, the Riverside Line, and the 91 Line. The rail lines are located in the Cities of Riverside, Corona, and the unincorporated areas of the County. The service area population numbers approximately 900,000. There are five transit centers in the RCTC service area: Riverside-Downtown, the Pedley Station, Riverside-LaSierra, North Main Corona, and West Corona. 2 14 • • • • • • Over the past three years RCTC has completed the North Main Corona Parking Structure that provides 1,065 spaces at the Metro link Station and the Perris Multimodal Facility, a cooperative undertaking with the Riverside Transit Authority (RTA), located immediately adjacent to the downtown Perris Rail Depot. This facility will serve as one of Riverside's first transit centers providing bus and eventually Metro link service. RCTC's ongoing project is the Perris Valley Line, an extension of the 91 Line and a Small Starts project that will extend Metrolink serviced from Riverside to Moreno Valley and Perris via the RCTC--owned San Jacinto Branch line, formerly owned by the Burlington Northern Santa Fe Railroad Corporation (BNSF). RCTC has a memorandum of understanding with the BNSF to maintain the rail right of way until Metrolink operates the rail service. As a condition of the purchase of the PVL RCTC permits BNSF to continue to operate freight service. There are no ARRA-funded projects completed, underway or planned. Future projects include the rehabilitation of Metrolink's rail assets: railcars, track, signals and right-of-way. IV. RESULTS OF THE REVIEW The Triennial Review focused on RCTC's compliance in 1 8 areas. This section provides a discussion of the basic requirements and findings in each area. Deficiencies were found in one area, Technical. There were six areas that were not applicable to RCTC. There was no repeat deficiency from the last review. Basic Requirement: The grantee must be eligible and authorized under state and local law to request, receive, and dispense FTA funds and to execute and administer FTA funded projects. The authority to take actions and responsibility on behalf of the grantee must be properly delegated and executed. Finding: During this Triennial Review ofRCTC, no deficiencies were found with the FT A requirements for Legal. 2. Financial Basic Requirement: The grantee must demonstrate the ability to match and manage FT A grant funds, cover cost increases and operating deficits, financially maintain and operate FT A funded facilities and equipment, and conduct and respond to applicable audits . 3 15 Finding: During this Triennial Review of RCTC, no deficiencies were found with the • FT A requirements for Financial. 3. Technical Basic Requirement: The grantee must be able to implement the FTA-funded projects in accordance with the grant application, Master Agreement, and all applicable laws and regulations, using sound management practices. Finding: During this Triennial Review of RCTC, deficiencies were found with the FTA requirements for Technical. Federal Financial Reports (FFRs) have not been submitted on a quarterly basis for CA-95-X031 since January 27, 2011. The RCTC's quarterly Milestone Progress Reports (MPRs) did not always report the required information for Project Status Overview, Milestone Progress, and Milestone Detail Description. The RCTC did not consistently identify schedule and budget issues or actions the RCTC could take to mitigate the impacts on project completion and closeout. Schedules for completing project ALis were not always revised when required nor were reasons given in "Milestone Progress" for the slippage. For CA-95-X031, the last disbursement was December 1, 2010. The grant was not closed in a timely manner despite having a relatively low balance of funds. The unliquidated obligations reported for the quarterly FFRs ofCA-95-Xl35 submitted by RCTC did not reconcile with the internal grant accounting system. Corrective Action and Schedule: The quarterly reports due on October 30,2012 must be on time and must include all required information. By October 30, 2012 RCTC will submit to FTA revised and implemented grants management procedures to ensure: • Timely filing ofFFRs and MPRs • If appropriate, that the MPRs identify issues that have occurred in the recent quarter that have or will impact the projects' schedule or budget and actions that will be taken to mitigate the impact or bring the project back on schedule and/or budget. The MPRs should also include brief descriptions of all potential or executed change orders exceeding $100,000 and claims and litigation that exceed $100,000. • Procedures are in place for handling inactive grants and untimely closeouts. By September 30,2012 the RCTC will complete the deobligation ofCA-95-X031. By October 30, 2012 the RCTC will review its outstanding grants to ensure that the unliquidated balances reported in its quarterly FFRs reconcile with its accounting and 4 16 • • • • • grants management system. RCTC will develop procedures to assist in the reconciliation and submit them to FT A Region IX. 4. Satisfactory Continuing Control Basic Requirement: The grantee must maintain control over real property, facilities, and equipment and ensure that they are used in transit service. Finding: During this Triennial Review ofRCTC, no deficiencies were found with the FT A requirements for Satisfactory Continuing Control. 5. Maintenance Basic Requirement: Grantees and their subrecipients must keep federally funded equipment and facilities in good operating order and maintain ADA accessibility features. Findings: During this Triennial Review ofRCTC, no deficiencies were found with the FT A requirements for Maintenance. 6. Procurement Basic Requirement: FT A grantees use their own procurement procedures that reflect applicable state and local laws and regulations, provided that the process ensures competitive procurement and the procedures conform to applicable federal law, including 49 CFR Part 18 (specifically Section 18.36) and FTA Circular 4220.1F, 'Third Party Contracting Guidance." Finding: During this Triennial Review ofRCTC, no deficiencies were found with the FT A requirements for Procurement. 7. Disadvantaged Business Enterprise (DBE) Basic Requirement: The grantee must comply with 49 CFR Part 26 to ensure nondiscrimination in the award and administration ofDOT-assisted contracts. Grantees also must create a level playing field on which DBEs can compete fairly for DOT -assisted contracts. Finding: During this Triennial Review ofRCTC, no deficiencies were found with USDOT requirements for DBE . 5 17 8. Buy America Basic Requirement: Federal funds may not be obligated unless steel, iron, and manufactured products used in FTA funded projects are produced in the United States. Grantees must conduct pre-award and post-delivery audits of purchases of revenue rolling stock in order to verify that Buy America provisions, Federal Motor Vehicle Safety Standards, and purchaser's requirements are met. Finding: During this Triennial Review ofRCTC, no deficiencies were found with the FT A requirements for Buy America. 9. Debarment and Suspension Basic Requirement: Debarment and suspension are tools used to protect the public from fraud, waste, and abuse in federal transactions. Grantees and subgrantees must not make any award or permit any award (subgrant or contract) at any tier to any party that is debarred or suspended or is otherwise excluded from or ineligible for participation in federal assistance programs Finding: During this Triennial Review ofRCTC, no deficiencies were found with the FT A requirements for Debarment and Suspension. 10. Lobbying Basic Requirement: Recipients of federal grants and contracts exceeding $100,000 must certifY compliance with Restrictions on Lobbying before they can receive funds. Finding: During this Triennial Review ofRCTC, no deficiencies were found with the FT A requirements for Lobbying. 11. Planning/Program of Projects Basic Requirement: The grantee must participate in the transportation planning process in accordance with FTA requirements, SAFETEA-LU, and the metropolitan and statewide planning regulations. Grantees must develop and/or participate in a locally developed, coordinated public transit-human services transportation plan that identifies the transportation needs of individuals with disabilities, older adults, and people with low incomes, provides strategies for meeting those local needs, and prioritizes transportation services for funding and implementation. Each recipient of a Section 5307 grant shall have complied with the public participation requirements of Section 5307( c)( 1) through (7). Each grantee is 6 18 • • • • • • required to develop, publish, afford an opportunity for a public hearing on, and submit for approval a Program of Projects (POP). Finding: During this Triennial Review ofRCTC, no deficiencies were found with the FTA requirements for planning/POP. 12. Title VI Basic Requirement: The grantee must ensure that no person in the United States shall, on the grounds of race, color, or national origin, be excluded from participating in, be denied the benefits of, or be subject to discrimination under any program or activity receiving federal financial assistance. The grantee must ensure that federally supported transit services and related benefits are distributed in an equitable manner. Finding: During this Triennial Review ofRCTC, no deficiencies were found with the FT A requirements for Title VI. 13. Public Comment on Fare and Service Changes Basic Requirement: Section 5307 grantees are expected to have a written locally developed process for soliciting and considering public comment before raising a fare or carrying out a major transportation service reduction. Finding: RCTC does not operate any transit services, so the requirement for a public comment process for fare increases and services reductions is not applicable. 14. Half Fare Basic Requirement: During non-peak hours for fixed route service supported with Section 5307 assistance, fares charged elderly persons, persons with disabilities or an individual presenting a Medicare card will not be more than half the peak hour fare. Finding: RCTC does not operate any transit services, so the requirement for half-fare is not applicable. 15.ADA Basic Requirement: Titles II and III of the Americans with Disabilities Act of 1990 provide that no entity shall discriminate against an individual with a disability in connection with the provision oftransportation service. The law sets forth specific requirements for vehicle and facility accessibility and the provision of service, including complementary paratransit service . 7 . 19 Finding: During this Triennial Review ofRCTC, no deficiencies were found with the FT A requirements for ADA. 16. Charter Bus Basic Requirement: FTA grantees are prohibited from using federally funded equipment and facilities to provide charter service if a registered private charter operator expresses interest in providing the service. Grantees are allowed to operate community based charter services excepted under the regulations. Finding: RCTC does not operate any transit services, so the requirement for Charter Bus is not applicable. 17. School Bus Basic Requirement: Grantees are prohibited from providing exclusive school bus service unless the service qualifies and is approved by the FTA Administrator under an allowable exemption. Federally funded equipment or facilities cannot be used to provide exclusive school bus service. School tripper service that operates and looks like all other regular service is allowed. Finding: RCTC does not operate any transit services, so the requirement for School Bus is not applicable. 18. National Transit Database (NTD) Basic Requirement: Grantees that receive 5307 and 531 1 grant funds must collect, record, and report financial and non-financial data in accordance with the Uniform System of Accounts (USOA) and the National Transit Database (NTD) Reporting Manual as required by 49 USC 5335(a). Finding: RCTC does not operate any transit services, so the requirement for NTD is not applicable. 19. Safety and Security Basic Requirement: Under the safety authority provisions of the federal transit laws, the Secretary has the authority to investigate the operations of the grantee for any conditions that appear to create a serious hazard of death or injury, especially to patrons of the transit service. As recipients of Urbanized Area Formula Grant Program funds, grantees must annually certifY that they are spending at least one percent of such funds for transit security projects or that such expenditures for security systems are not necessary. 8 20. • • • • • • FTA and the Department ofHomeland Security's (DHS) Transportation Security Administration (TSA) have developed a list of 17 Security and Emergency Management Action Items for Transit Agencies. The action items aim to elevate security readiness throughout the public transportation industry by establishing baseline measures that transit agencies should employ. The goal ofFTA's Safety and Security Program is to achieve the highest practical level of safety and security in all modes of transit. To this end, FTA continuously promotes the awareness of safety and security throughout the transit community by establishing programs to collect and disseminate information on safety/security concepts and practices. In addition, FTA develops guidelines that transit systems can apply in the design of their procedures and by which to compare local actions. Many of the questions in this review area are designed to determine what efforts grantees have made to develop and implement safety, security, and emergency management plans. While there may not be specific requirements associated with all of the questions, grantees are encouraged to implement the plans, procedures, and programs referenced in these questions. For this reason, findings in this area will most often result in advisory comments rather than deficiencies. Finding: A summary, of RCTC's expenditures of Section 5307 funds for security projects, is provided in Section VI of this report. During this Triennial Review of RCTC, no deficiencies were found with the FT A requirements for Safety and Security. 20. Drug-Free Workplace Basic Requirement: FTA grantees are required to maintain a drug-free workplace for all employees and to have an ongoing drug-free awareness program. Finding: During this Triennial Review ofRCTC, no deficiencies were found with the FTA requirements for Drug-free Workplace. 21. Drug and Alcohol Program Basic Requirement: Grantees receiving Urbanized Area Formula Program (Section 5307), Non-Urbanized Area Formula Program (Section 5311 ), or Capital Investment Program (Section 5309) funds must have a drug and alcohol testing program in place for all safety-sensitive employees. Finding: RCTC does not operate any transit services, so the requirement for the Drug and Alcohol Program is not applicable . 9 21 22. Equal Employment Opportunity (EEO) Basic Requirement: The grantee must ensure that no person in the United States shall on the grounds of race, color, religion, national origin, sex, age, or disability be excluded from participating in, or denied the benefits of, or be subject to discrimination in employment under any project, program, or activity receiving federal financial assistance under the federal transit laws. (Note: EEOC's regulation only identifies/recognizes religion and not creed as one of the protected groups.) Finding: During this Triennial Review ofRCTC, no deficiencies were found with the FTA requirements for EEO. 23. ITS Architecture Basic Requirement: Intelligent Transportation Systems (ITS) projects funded by the Highway Trust Fund and the Mass Transit Account must conform to the National ITS Architecture, as well as to United States Department of Transportation adopted ITS Standards. Finding: During this Triennial Review ofRCTC, no deficiencies were found with the FT A requirements for ITS Architecture. 24. American Recovery and Reinvestment Act (ARRA) Basic Requirement: Grantees must have the legal, financial and technical capacity to carry out the proposed program of projects and meet the additional reporting requirements for its ARRA-funded grant activities. Finding: RCTC was not awarded any ARRA grants during this period. During this Triennial Review of RCTC, no deficiencies were found with the FT A requirements for ARRA. 10 22 • •• • • V. SUMMARY OF FINDINGS AND CORRECTIVE ACTIONS Review Area Finding Deficiency Corrective Action Response Date Date Closed I. Legal ND 2. Financial ND 3. Technical D-02 Late MPRs/FFRs Review its process for submitting October 30, quarterly FFRs and MPRs and 2012 submit changes to its grants procedures, as required, to ensure timely filing of its FFRs and MPRs. Reports for the final quarter of2012 must be on time. D-03 Progress reports Review the process for preparing October 30, lacked required MPRs and make changes to 2012 information ensure that reports, if appropriate, identifY issues that have occurred in the recent quarter that have or will impact the projects' schedule or budget and actions that will be taken to mitigate the impact or bring the project back on schedule and/or budget. The RCTC will submit a copy of the review and the changes made to internal project management and grant • processes to the FT A and use the findings in submitting their MPRs for the 41h Quarter 20 I2 and going forward. D-04 Inactive Complete the deobligation ofCA-September grants\untimely 95-X031 and review RCTC's 30,20I2 closeouts grants management process to ensure procedures are in place for handling inactive grants and untimely closeouts and submit a copy of the revised procedures to FT A Region IX. D-12 Incorrect FFR Review RCTC's outstanding October 30, Reporting grants to ensure that the 2012 unliquidated balances reported in its quarterly FFRs reconcile with its accounting and grants management system. Further, RCTC will deveiop procedures to assist in the reconciliation and submit them to FT A Region IX. 4. Satisfactory ND Continuing Control 5. Maintenance ND 6. Procurement ND 7. Disadvantaged ND Business Enterprise 8. Buy America ND • I 1 23 Review Area Finding Deficiency Corrective Action Response Date Date Closed • 9. Debannent and ND Suspension 10. Lobbying ND 11. Planning/POP ND 12. Title VI ND 13. Public Comment NA on Fare and Service Changes 14. HalfFare NA 15. ADA ND 16. Charter Bus NA 17. School Bus NA 18. National Transit NA Database 19. Safety and ND Security 20. Drug-Free ND Workplace 21. Drug and NA Alcohol Program 22. Equal ND Employment Opportunity 23. lTS Architecture ND 24. ARRA ND • Fmdmgs: ND =No Defic1enc1es; D = Defic1ent; AC = Adv1sory Comment; NA =Not Applicable • 12 24 • • • VI. TRANSIT SECURITY EXPENDITURES Does the grantee expend one percent or more of its Section 5307 Urbanized Area Formula Grant funds for transit security? FY2009: Yes: X No: FY2010: Yes: X No: FY2011: Yes: X No: If h d h no, w 1y oes t e grantee cons1 er sue h ( h k n h I ): expen 1ture unnecessary c ec a t at appi No deficiency found from a threat and vulnerability assessment TSA/FT A Security and Emergency Management Action Hems met or exceeded X Other (please describe): RCTC uses Proposition I B funds as well. Sd:11rity Funding JW ,, I•;, (J,? · .. ~;~;~.g~~~~ll\- ~ •. ·c, . ' . •·: I·'· :, :: . ·:<<<.' . ·''·;'¥ >. . .. ', . '' ... :,;: .:;~: .:':•:• .·~· ~~Ti~:· F;¥ 200:9 .;~:? .. Ex:zo,to :<;:¥r ~. r· .·'· •' .• >',..-: ,·, o~·';hv , ,· •• • ,;-"; ;1 .' .'>."';• ', Total amount of 5307 funds expended $3,001,793 $9,675,718 $5,162,025 Amount of 5307 funds expended on security $58,312 $301,882 $148,873 Percent of 5307 funds expended on security 1.9% 3.1% 2.9% Infrastructure/Capital Improvement Security Projects: Lighting, fencing & perimeter control $30,293 $80,085 $22,677 CCTV and surveillance technology $26,347 $204,336 $104,723 Communications systems $1,672 $17,461 $21,473 Security planning Drills & tabletop exercises Employee security training Other security-related infrastructure & capital improvements (please list) Operating/Personnel Expenditures (for agencies in areas with populations under 200,000): Contracted security force In-house security force Other security-related operating expenditures (please list) 13 25 • VII. ATTENDEES Name Title/Organization Phone Number.. · E-mail Address RCTC John Standiford Deputy Executive Director 951-787-7969 jstandiford@rctc.org Sheldon Peterson Rail Manager/RCTC 951-787-7928 speterson@rctc.org George Salas Facilities Supervisor/Bechtel 951-787-5037 gsalas@rctc.org Theresia Trevino CFO/RCTC 951-787-7926 ttrevino@rctc.org Michele Cisneros Accountin_g/HR Mana_ger/RCTC 951-787-7941 mcisneros@rctc.org Matt Walker Procurement Manager/RCTC 951-787-7908 mwa1ker@rctc.org Stephen Bennett Construction Manager 951-787-7936 sbennett@}rctc.org Robert Yates Multimodal Service Director 951-787-7905 ryates@rctc.org Henry Nickel Rail Analyst 951-787-7929 hnicke1@rctc.org FTA Roxana Hernandez Program Engineer 415-744-2658 Roxana.Hernande~@dot.gov CDIIDCI Joint Venture Robert Prangley Reviewer 513-236-7784 rprangley@fuse.net • • 14 26 • • • RIVERSIDE COUNTY TRANSPORTATION COMMISSION DATE: December 12, 2012 TO: Riverside County Transportation Commission Budget and Implementation Committee FROM: Theresia Trevino, Chief Financial Officer Matthew Wallace, Procurement Manager THROUGH: Anne Mayer, Executive Director SUBJECT: Revisions to Procurement Policy Manual BUDGET AND IMPLEMENTATION COMMITTEE AND STAFF RECOMMENDA T/ON: This item is for the Commission to: 1) 2) Approve the revised Riverside County Transportation Commission Procurement Policy Manual for the procurement and contracting activities undertaken by the Commission, pursuant to legal counsel review, as to conformance to state and federal law; and Adopt Resolution . No. 12-031, #Resolution of the Riverside County Transportation Commission Regarding the Revised Procurement Policy Manual". BACKGROUND INFORMATION: The Commission's initial Procurement Policy Manual was adopted in April 2007, in response to the Federal Transit Administration's (FTA) 2006 Triennial Review. At its July 2012 meeting, the Commission adopted a revised Procurement Policy Manual that was comprehensive and incorporated key elements to comply with FTA, Federal Highway Administration, Caltrans, other state and federal, and Commission regulations. As a result of the FTA' s Procurement Systems Review of the Commission completed in October 2012, FTA and its contractor identified 14 areas with corrective action recommendations consisting primarily of revisions to procurement policies and procedures. Procurement Policies Manual Highlights The primary revisions to the Procurement Policy Manual include the following areas: Agenda Item 70 27 '1) Procurement Standards: a. Contract Administration System; b. Procurement Records; c. Specifications; d. Brand Name or Equal; and e. Violations or Breach of Contract. 2) Types of Contracts: a. Time-and-Materials Contracts. 3) Independent Cost Estimate. 4) Duties of Commission Staff Regarding Procurements: a. Construction Change Orders. 5) Determination of Fair and Reasonable Price: a. Single Offer/Lack of Adequate Competition. 6) Protest Procedures. 7) Simplified Purchase Procedures: a. Requirements for Micropurchases; and b. Use of Small Purchases. 8) Geographical Preferences. 9) Revenue Contracts. 10) Statutory and Regulatory Requirements. 11) Disputes, Claims and Changes -General. 12) Termination. 13) Bonds, Other Securities and Insurance. 14) Progress Payments. The revised Procurement Policy Manual continues to provide the Commission with a comprehensive, formal set of policies and procedures that assists all aspects of the organization with guidance regarding best procurement practices. With the increasing number of projects using federal funding sources, the Procurement Policy Manual provides a framework to ensure compliance with federal regulations. Staff is reviewing and assessing existing forms and detailed procedures to determine any changes that could improve procurement processes and compliance with the revised Procurement Policy Manual. Attachments: 1) Procurement Policy Manual 2) Resolution No. 1 2-031 Agenda Item 70 28 • • • • • • CHAPTER I -PROCUREMENT PROCESS 1.0 PURPOSE AND SCOPE 2.0 A. The Riverside County Transportation Commission (hereinafter "RCTC" or "Commission") procures goods and services using public funds. It has a responsibility to uphold the public trust and maximize the value of public funds by using them as efficiently and cost-effectively as possible. B. This Procurement Policy Manual (Manual) sets forth a general procurement policy and set of standards that will govern the conduct of Commission procurement activities and of Commission personnel engaged in those activities. The policies contained herein are advisory, notmandatory, and any deviation therefrom shall not render any contract of the Commission void or voidable. This manual is for Commission internal purposes only and shall not create any rights in any third parties. C. This Manual is intended to supersede, in its entirety, the Commiss.ion's Procurement Policies Manual which was adopted on April I 1, 2007, and Resolution No. 98-013, adopted December 9, 1998, entitled Resolution of the Riverside County Transportation Commission Authorizing the Executive Director to Sign Certain Commission Contracts. PROCUREMENT POLICY STATEMENT A. The Commission procurement policies establish the guidelines and policies for procuring the goods and services necessary for the Commission to carry out its responsibilities and duties. The policies are intended to maintain the integrity of the Commission's procurement process, while ensuring that purchases are made in a cost effective, timely manner; with fair and open competition; and in accordance with all applicable laws and regulations. B. The objectives of the Commission's Procurement Policy Manual are to: 1. Maximize the value received for the Commission's expenditure of public funds. 2. Protect assets and/or services purchased with public funds and ensure their application in the Commission's interests. 3. Provide all vendors an equal opportunity to provide needed goods and/or services. 4. Protect the integrity and reputation of the Commission, its officers, and its employees. 3.0 PROCUREMENT STANDARDS A. GENERAL 1. Contract Administration System. The Commission will maintain a contract administration system that helps ensure that contractors perform 29 in accordance with the terms, conditions, and specifications of their respective contracts. a. Contract administration activities mav include the t()llowing: 1. Receive. evaluate. and act on value engineering and other change proposals. JJ. Negotiate cost and schedule impact related to change orders and other contract modifications. 111. Process disputes under the Disputes Clause. lV. Review and approve pavmcnts under the Progress Pavments Clause. v. Monitor progress and ensure timely notification of anticipated overrun. Vl. Monitor financial status and advise if contract performance is jeopardized. v 11. Issue task orders. VII!. Perform property administration. IX. Ensure contractor compliance with quality assurance requirements. • x. Evaluate, t1)f adequacy, the contractor's engineering efforts and • management systems that relate to desie:n. development, production and testing. xJ. Evaluate and make recommendations on contractor requests for waivers and deviations. Xll. Monitor contractor's small and disadvantaged business suhcontractine:. X!ll. Ensure time!v submission of required reports. xtv. Administer special clauses such as drug and alcohol testing. xv. Receive, inspect, and accept or reject partial deliveries and final deliveries of all contract deliverables. xv1. Assist in contract close out. b. The administration of construction contracts may be further supplemented by the Caltrans Construction Manual or other manual developed for a specific project. as required. 2. A void Duplicative Purchases. Commission staff should regularly review proposed and planned procurements to avoid purchase of unnecessary or duplicative items. 2 30 • • • • 3. 4. Lease vs. Purchase Analysis. Where appropriate, an analysis should be made of lease versus purchase alternatives and any other appropriate analysis to determine the most economical procurement approach. Value Engineering. When appropriate and in the Commission's best interests, the Commission will encourage the use of value engineering by including applicable clauses in contracts for appropriate equipment purchases and construction projects. 5. Award to Responsive and Responsible Contractors. The Commission will make awards only to responsive and responsible contractors, as determined by the Commission, possessing the ability to perform successfully under the terms and conditions of a proposed contract. Consideration will be given to such matters as contractor integrity, compliance with public policy as implemented by applicable laws and regulations, record of past performance, and financial and technical &:6. resources. a. In connection with the responsibilitv determination for tcderallv funded procurements, a check of debarment and suspension must be perf(xmed and documented in the procurement records. Commission Rejection ofBids, Quotes, and/or Proposals. The Commission, to the extent permitted by applicable laws, may reject any and all bids, quotes and/or proposals and re-advertise at its sole discretion . The Commission should ensure that such rights are clearly stated in all Commission bid documents. 4-:7. Procurement Records. Records sufficient to document the significant history of each procurement activity should be maintained and retained by the Commission in accordance with the Commission's records retention policy. At a minimum, these records should include: a. The rationale fbr the method of procurement; b. Selection of contract tvpe: c. Reasons for contractor selection or rejection: anq d. ·rhe basis for the contract price. +R. Specifications. The Commission will have clear and accurate contract specifications or statements of work that identify all requirements that oflerors must fulfill. Additionallv, written selection procedures for formal procurements ffi.a.tshall be prepared to help ensure fair, unbiased evaluation of competing proposals. a. For FTA-funded procurements. the Commission is prohibited fi·om undulv restricting competition or placing unreasonable requirements on firms in order for them to qualifv to do business (e.g .. unnecessary experience and excessive bonding requirements) . 3 31 -"-9-=-. --""'B"'ra""r'"'Jd"-'-l':lanle or.l;:qual. The usc of''brand name or equal'' purchase descriptions mav be permitted: a. Only when an adequate specification cannot be provided without pert()rmin~ an inspection and analvsis in time tor the acquisition under considcratiDn: and h,__~y_ll~l.lJl1iJJJIJ:!\JJ}J__Q~~-cJ;;_are_<.;<:tre tll]J.y_iden.tlik9 and those sal i e_l]_t_ physical and fupctional characteristics ofthe brand name product are clearly set t()rth in the solicitation. c. For non-federally funded procurements. as other.vise permitted bv _;;J_<jgJi.t\'i: This section is not intended to impose limitations on the Commission's abilitv to require a brand name when the procurement is not federallv funded and is not a ·'public work"' subject to the requirements contained in the ~'lliforuia Public Utilities Code~ ,~LIO. Conflicts oflnterest. All Commission Members, employees and other agents must conduct the procurement process so as to avoid conflicts of interest, real or apparent. To maintain full and open competition, no Commission member, employee or other agent is permitted to give preferential treatment to any contractor, nor to influence or participate in any Commission transaction in which such person has a financial interest. All procurements must be conducted in accordance with the Commission's Resolution No. I 0-038, "Resolution of the Riverside County Transportation Commission Amending the Appendix of the Conflict of Interest Code Pursuant to the Political Reform Act of 1974 (as amended)," as may be amended. ~JJ, __ Lobbying and Gifts. Commission officers, employees, agents and Commission members must comply with applicable state and federal law regarding acceptance of gifts, gratuities, or favors from contractors, potential contractors, or parties to subcontractor agreements. -J-4-j_,;,_Audit Provisions. Every Commission contract wherein contractor or other entity is receiving Commission funds in excess of $10,000 should include a provision allowing examination and audit of records related to the contract by the Commission's auditor for a period of three years after final payment under the terms ofthe contract. 13. Violations or Breach of Contract. All contracts exccedin2 $100.000 should include administrative. contractual, or legal remedies for violations or breach of the contract bv the contractor. +hLt. Termination Clause. All contracts in excess of$25,000, and public works contracts in excess of$2,000, should provide for the termination of the contract for the Commission's convenience, and all contracts should provide for the termination of the contract for default in cases of contractor breach or non-performance. 4 32 • • • • 4.0 • • -t-2-;l_~,_Issues not Included in the Procurement Policy Manual. If a policy, procedure or particular strategy or practice is in the best interest of the Commission and is not specifically addressed, nor prohibited by statute or case law, users of this Manual should not assume it is prohibited. Rather, the absence of direction should be interpreted as permitting the Executive Director to innovate and use sound business judgment that is otherwise consistent with law and within the limits of his or her authority. TYPES OF CONTRACTS A. General Provisions 1. The Procurement Officer should use the types of contracts described in this Chapter for most types of procurement, except as otherwise provided for certain small purchases described hereunder in Chapter 6. Innovative contracting arrangements are not prohibited, but require the advance approval of the Executive Director or the Commission, as specified herein. 2. The "cost-plus-percentage-of-cost" method of contracting shall not be used for state or federally funded contracts. 3. 4. The Procurement Officer, in consultation with the Project Manager, should select the type of contract that is most appropriate to the circumstances of each procurement, in accordance with the provisions of this Chapter. In procurements by other than competitive sealed bidding, the Procurement Officer may negotiate a contract type and price (or estimated cost and fee) that will result in reasonable contractor risk and provide the contractor with the greatest incentive for efficient and economical performance. B. Selecting Contract Types 1. The type of contract to be used should be determined prior to the solicitation, and the solicitation should inform bidders of the type of contract that will be used. 2. When procurement is by competitive sealed bidding, the Procurement Officer must use a firm fixed-price contract. 3. Except when procurement is by competitive sealed bidding as required by law, the Procurement Officer should select the most effective contract type and should consider contract type together with the issues of price, risk, uncertainty, and responsibility for costs. The type of contract used should reflect the cost risk and responsibility assumed by the contractor or supplier. 4. The Procurement Officer should avoid the continued use of a cost reimbursement or time-and-materials contract after experience provides a basis for firmer pricing . 5 33 5. The Procurement Officer should include documentation in each contract file to show why the particular contract type was selected, except for purchase orders under the small purchase threshold. C. Fixed-Price Contracts 1. Fixed-price contracts may provide for a firm price or, in appropriate cases, an adjustable price. 2. Fixed-price contracts providing for an adjustable price may include a ceiling price, a target price (including target cost), or both. Unless otherwise specified in the contract, the ceiling price or target price will be subject to adjustment only by operation of contract clauses providing for equitable adjustment or other revision of the contract price under stated circumstances. 3. A firm-fixed-price contract should provide for a price that is not subject to any adjustment on the basis of the contractor's cost experience in performing the contract. 4. A firm-fixed-price contract should be used for acquiring commercial products or commercial-type products, or for acquiring other supplies or services, on the basis of reasonably definite functional or detailed specifications if the Procurement Officer can establish fair and reasonable prices at the outset, including the following circumstances: a. When there is adequate price competition; b. When there are reasonable price comparisons with prior purchases of the same or similar supplies or services made on a competitive basis; c. When available cost or pricing information permits realistic estimates ofthe probable costs of performance; d. When performance uncertainties can be identified and reasonable estimates of their cost impact can be made, and the contractor is willing to accept a firm-fixed-price contract; or e. When required by law unless a sole source exception applies. D. Cost Reimbursement/Cost Plus Fixed Fee Contracts 1. Cost reimbursement contracts provide for payment ofthe contractor's reasonable, allocable and allowable incurred costs plus a negotiated fixed fee, to the extent prescribed in the underlying contract and Federal Acquisition Regulation Part 31. 2. A cost reimbursement contract establishes an estimate of total cost for the purpose of obligating funds and establishing a ceiling on expenditures that the contractor may not exceed without the approval of the Commission. 3. Cost reimbursement contracts are suitable for use when the uncertainties of performance do not permit costs to be estimated with sufficient accuracy to use a fixed-price contract. 6 34 • • • • • • E. 4. The Commission must determine the adequacy of the contractor's accounting system for cost-type contracts before awarding such a contract. Time-And-Materials Contracts 1. A time-and-materials contract should be used only after the Procurement Officer determines;_ a. In \Vriting. that no other tvpe of contract is suitable: and b. A ceiling price to be included in the contract that the contractor shall not exceed except at its own risk. 2. A time-and-materials contract should be used only when it is not possible at the time of executing the contract to estimate accurately the extent or duration of the work or to anticipate costs with any reasonable degree of certainty or confidence. 3. A time-and-materials contract should include direct labor hours at specified fixed hourly rates that include wages, overhead, general and administrative expenses, profit, and materials required at cost. 4. The user department/project manager should ensure that there is adequate surveillance of contractor performance when a time-and-materials type contract is used. F. Labor-Hour Contracts 1. When materials are not required, the Procurement Officer may use a labor- hour contract, a variation of the time-and-materials contract. 2. The use of a labor-hour contract should be in accordance with the above- referenced provisions related to time-and-materials contracts. G. Letter Contracts (Letter Of Intent Contracts) 1. A Jetter contract is an interim type of contractual agreement that gives the contractor a limited Notice of Award for the delivery of the required goods/supplies or the performance of services. 2. The Procurement Officer may use a Jetter contract when the Commission's interests demand that the contractor be given a binding commitment so that work can start immediately and executing a definitive contract is not possible in sufficient time to meet the requirement. Each Jetter contract should be as complete and definitive as possible under the circumstances and should include clauses approved and required by the Procurement Officer. 3. The estimated cost of the definitive contract should determine the type and level of review and approval required for approval of a Jetter contract. 4. A letter contract may not be entered into without competition except as provided for under Non-Competitive and/or Emergency Procurements provisions of this Manual. 7 35 H. 5. A letter contract may not be amended to satisfy a new requirement unless the new requirement is inseparable from the existing contract. Any amendment should be subject to the same requirements as a new letter contract. 6. The total value of the letter contract should be the estimated sum necessary to cover the contractor's requirement for funds before execution of the definitive contract. However, the total value of a letter contract should not, under any circumstances, exceed fifty percent (50%) of the overall price ceiling for the term of the final negotiated (i.e., definitive) contract. 7. A letter contract should contain a negotiated schedule for execution of the definitive contract, including dates for submission of the contractor's price proposal, cost or pricing data (if required), a date for start of negotiations, and a target for execution of the definitive contract. 8. The letter contract should provide that if the Procurement Officer and the contractor cannot negotiate a definitive contract because of failure to reach agreement regarding price or fee: 1) the Procurement Officer may terminate the letter contract; or 2) if a "contract definitization" clause is included in the letter contract, the Commission may unilaterally require the contractor to continue the work and the Procurement Officer may, with the approval of the Executive Director, determine a reasonable price or fee. Multiple Year Contracts Multiple year contracts may be used with competitive sealed bids, competitive proposals, or by non-competitive procurement. Multiple year contracting is a method by which the Commission awards a contract for a base period of one or more years, with option provisions for future years' requirements. The option provision in the contract should provide for unilateral exercise at the discretion of the user department/project manager, as additional requirements and funding become available. See below under Section 5.0 of this Chapter for further information regarding Options. I. Indefinite Delivery/Indefinite Quantity (ID/IQ) Contracts 1. . The Procurement Officer may use an ID/IQ type of contract when the Commission anticipates a recurring requirement, but cannot predetermine the precise quantities of supplies or services at the time of contract award. 2. ID/IQ contracts should specify maximum or minimum estimated quantities that the Commission may require during the term of the agreement. An ID/JQ contract should make no promise of exclusivity and may in fact be one of several (multiple) contracts awarded for the same item or service. 3. There are several types ofiD/IQ contracts, including: a. Definite-quantity contracts 8 36 • • • • • • b. Requirements contracts c. Indefinite quantity (IQ) contracts (commodities) d. Task order contracts (services) 4. If possible under the circumstances, the Procurement Officer should ensure that original solicitation and resultant ID/IQ contract contain both a minimum and a maximum quantities, which represent the reasonably foreseeable needs of the parties to the solicitation, and a clause stating that the estimate is not a representation to a bidder, offeror, or consultant that the estimated quantity or dollar amount above the estimated minimum will actually be required or ordered by the Commission. 5.0 OPTIONS A. General 1. When it is in the best interest of the Commission, a contract option may be included providing the Commission the unilateral right to extend the term of the contract and/or to purchase additional supplies or services called for by the contract. 2. Any written findings required for a contract option shall specify both the base requirement(s) and the increase permitted by subsequent options. Contract provisions setting forth the cost of the option may include, but are not limited to, the following: a. A specific dollar amount; b. An amount to be determined by applying provisions (or a formula) provided in the basic contract, but not including renegotiation of the price for work in a fixed-price type contract; c. In a cost-type contract, a stated fixed or maximum fee, or a fixed or maximum fee amount determinable by applying a formula contained in the basic contract; d. A specific price that is subject to an economic price adjustment provision; or e. A specific price that is subject to change as a result of changes to the prevailing labor rates provided by the U.S. Department of Labor (DOL) or the California Department of Industrial Relations (DIR) prevailing rates, whichever is applicable. B. Solicitation of Contracts with Options 1. If a contract provides for an option, the solicitation should include appropriate option clauses. 2. Each contract should state the period within which an option may be exercised . 9 37 3. In order to meet the requirements of this Manual for full and open competition, the option should be evaluated as part of the initial competition and be exercisable at an amount specified from the terms of the basic contract. When options have not been evaluated as part of the award, the exercise of such options will be considered a non-competitive procurement and must comply with the non-competitive procurement policies in described in this Manual. C. Exercise of Options 1. The user department/project manager, in cooperation with the Procurement Officer, should initiate the exercise of an option only after determining the following: a. That sufficient budget authority is available; b. That the requirement covered by the option fulfills an existing Commission need; and c. That the exercise of the option will be the most advantageous method of fulfilling the Commission's needs, when price and other factors are considered. 2. The Procurement Officer, after considering price and other factors, should make the determination whether to recommend exercising the option on the basis of one of the following: • a. A new solicitation fails to produce a better price or a more • advantageous offer than that offered by the option; provided, that if it is anticipated that the best price available is the option price (or that the option provides the more advantageous offt~r), the Procurement Officer should not use this method to test the market; b. An informal analysis of prices or an examination ofthe market indicates that the option price is better than prices available in the market or that the option is the most advantageous offer; or c. The short time between the award of the contract containing the option and the exercise of the option indicates that the option price is the lowest price obtainable or the most advantageous. 3. The contract modification or other written document, which notifies the contractor of the exercise of the option, shall cite the option provision as authority for the action and should be issued within the time period specified in the contract. 6.0 COOPERATIVE AGREEl\.1ENTS A. Memorandum ofUnderstanding A memorandum of understanding (MOU) is a contract document describing a bilateral or multilateral agreement outlining the terms and details of an arrangement between the parties to the MOU, including each party's requirements and responsibilities. An MOU is used when substantial involvement is expected 10 38 • • • 7.0 • B. C. betwetm the Commission and another agency or entity when carrying out the activity contemplated in the MOU, and there exists some public or mutually beneficial purpose in carrying out this activity. Piggybacking 1. Piggybacking is the post-award use of an acceptable contract/solicitation process that allows an entity not contemplated in the original procurement to purchase the same supplies or equipment under the original contract/solicitation process. 2. Piggybacking is permissible when: a. The underlying solicitation document and the resultant contract contain an assignability clause that provides for the assignment of all or part of the specified deliverables as originally advertised, competed, evaluated, and awarded; and b. For federally funded agreements, the original solicitation and resultant contract contain a minimum and a maximum quantity, which represent the reasonably foreseeable needs of the parties to the solicitation. California Multiple Award Schedule and State Master Agreements 1. A California Multiple Award Schedule (CMAS) and State Master Agreements are agreements established between the California Department of General Services (DGS) and multiple vendors who agree to the State of California terms and conditions, and may be used by the Commission. 2. Acquisitions based on CMAS or State Master Agreements shall be competitively bid so as to result in offers from three or more vendors including one small business, if available. Ifless than three offers are received, documentation of solicitation methods must be included with the contract documentation. 3. Three offers are not required for CMAS and State Master Agreements based on competition, such as Cal-Store, the Master Rental Agreement, Western States Contracting Alliance (WSCA), etc. Information on specific CMAS and State Master Agreements are available on DGS-PD's website at: www.dgs.ca.gov/pd. RECURRING CONTRACTS The Commission may, on an annual basis, evaluate existing contracts for professional services that are due to expire within the next fiscal year. While some of these contracts may be placed on the calendar for a new procurement solicitation or allowed to expire because they are no longer required, notwithstanding any other provision herein, some contracts may be included in an annual recurring contracts list that must be approved by the Commission. Most contracts for professional services should be subject to a competitive process; however, there may be limited circumstances in which staffbelieves it is more efficient and cost effective to retain such consultants on the recurring contracts list rather than rebidding the services. Those circumstances generally are due to the 11 39 consultant's historical knowledge, unique experience, and understanding of the Commission and/or specific Commission projects. Approval of the recurring contracts list allows the Commission to continue work on existing projects without interruptions and maintain consistency. A. FTA-fundcd contracts mav not be included in the annual recurring contracts list. 12 40 • • • • • • CHAPTER 2-PROCUREMENT GENERALLY 1.0 IMPLEMENTATION BY EXECUTIVE DIRECTOR; COMMISSION CONTROLS AND LIMITATIONS A. Final authority for purchasing actions and decisions rests w.ith the Commission, except as delegated by the Commission to the Executive Director. B. The Commission authorizes the Executive Director to execute contracts approved by the Commission. The Executive Director may designate the Deputy Executive Director, Chief Financial Officer or Directors to execute contracts under his or her signature authority on his/her behalf. C. The policies set forth herein will be implemented by the Chief Financial Officer. The Chief Financial Officer has primary responsibility for ensuring that the Commission's procurement process is in accordance with applicable laws and regulations, as interpreted by the General Counsel and Commission policy. D. The Executive Director is authorized to approve and enter into contracts on behalf of the Commission under his/her single signature authority as follows: 1. When the expenditure is less than fifty thousand dollars ($50,000) for the purchase of all supplies, equipment, materials and for the construction of all facilities and works in accordance with California PUC § 130232; and 2 . When the expenditure is less than one hundred thousand dollars ($ 1 00,000) for the purchase of services; however, (i) the aggregate amount of contracts executed under the single signature authority shall not exceed $1,000,000 in any given fiscal year; (ii) the aggregate value of all contracts awarded to any one entity under the Executive Director's single signature authority shall not exceed $150,000 in any fiscal year; and (iii) the Executive Director may execute contract amendments for existing contracts that do not exceed $100,000. Such authority however, may not be exercised more than once during the life of any contract and may not be used to amend contracts originally executed under the Executive Director's single signature authority. The Commission's fiscal year is from July 1 to June 30. E. The powers of the Executive Director pursuant to Paragraph "D" above are subject to: (i) the existence and provisions of a Commission approved budget; and (ii) applicable laws and regulations. F. The Executive Director must provide the Commission with a regular report of all contracts entered into pursuant to the single signature authority provided in Paragraph "D" above, and must report to the Commission at its next regularly scheduled meeting each new contract awarded on an emergency basis or other contracts in excess of the Executive Director's single signature authority . 13 41 • G. APPROVAL LIMITS AND SOLICITATION TYPES I. Supplies, Equipment, and Materials (California PUC § 130232) PURCHASE SOLICITATION SOLICITATION PROCESS APPROVER AMOUNT TYPE Less than $1 ,000 Micro-purchase Informal: Commercial availability, Procurement Rotate Vendors Officer* $1,000 to $25,000 Small Purchase Informal: Three (3) Quotes Procurement Officer* $25,001 to $50,000 Formal Procurement Formal: Advertisement, Clauses, Executive Competitive Sealed Bids Director Greater than $50,000 Formal Procurement Formal: Advertisement, Clauses, Commission Competitive Sealed Bids 2. Public Works (California PUC § 130232) PURCHASE SOLICITATION SOLICITATION PROCESS APPROVER AMOUNT TYPE Less than $1 ,000 Micro-purchase Informal: Commercial availability, Procurement Rotate Vendors, Non-Collusion Officer* Declaration, Insurance $1,000 to $25,000 Small Purchase Informal: Three (3) Quotes, Procurement Prevailing Wage, Clauses, Insurance, Officer* • License, Non-Collusion Declaration $25,001 to $50,000 Formal Procurement Formal: Advertisement, Clauses, Executive Prevailing Wage, Insurance, License, Director Competitive Sealed Bids, Payment Bond, Non-Collusion Declaration Greater than $50,000 Formal Procurement Formal: Advertisement, Clauses, Commission Prevailing Wage, Insurance, License, Competitive Sealed Bids, Payment Bond, Non-Collusion Declaration * As delegated by the Executive Director • 14 42 • • • H. 3. Services PURCHASE SOLICITATION SOLICITATION PROCESS APPROVER AMOUNT TYPE Less than $3,000 Micro-purchase Informal: Commercial availability, Procurement Rotate Vendors, Insurance Officer $3,000 to $50,000 Small Purchase Informal: Three (3) Quotes, Clauses, Procurement Insurance OHicer $50,001 to $100,000 Small Purchase Informal: Three (3) Quotes, Clauses, Executive Insurance; or Director Formal: Advertisement, Clauses, Insurance, and Negotiated Agreement, or Competitive Sealed Bids, or A/E Contract procedures Greater than Formal Procurement Formal: Advertisement, Clauses, Commission $100,000 Insurance, Certifications, and Negotiated Agreement, or Competitive Sealed Bids, or A/E Contract procedures In addition to the authority granted above, and except as otherwise prohibited by applicable state or federal Jaw, the Executive Director is authorized to approve and enter into contracts on behalf of the Commission, underhis/her single signature authority, where the relevant contract is directly related to and necessary to implement a project that has been approved by the Commission, the contract is within the approved project budget and, based on the circumstances, exercise of this authority is in the best interest of the Commission. 2.0 PROCUREMENT OFFICER-DESIGNATION AND DELEGATION The Chief Financial Officer is the designated "Procurement Officer" for the Commission. The ChiefFinancial Officer may delegate all or part of the Procurement Officer duties described in this Manual. 3.0 PROCUREMENT OFFICER-DUTIES A. The Procurement Officer has the duty to oversee all procurement activities of the Commission, and to implement the policies and standards set forth in this Manual, subject to the limitations of the authority that has been delegated to the Procurement Officer by the Commission or the Executive Director. B. The Procurement Officer may issue instructions for the implementation of Commission procurement policies. C. The Procurement Officer has the duty to ensure Commission contracts, purchase orders, modifications, and supplemental agreements are executed in accordance with established thresholds and delegated authority . 15 43 4.0 D. The Procurement Officer, subject to the review of the Commission's General Counsel, has the authority to draft and determine the final form of the contract to be used for each procurement. E. The Procurement Officer should ensure that a complete record of each procurement action is maintained in accordance with the Commission's records retention policy by establishing files containing the records of all major procurements and contractual actions pertinent to that office's responsibilities. 1. The Procurement Officer is responsible for maintaining the original contract file pursuant to applicable state and/or federal records retention policies. 2. The documentation in each contract file maintained by the Procurement Officer should be sufficient to constitute a complete history of the transaction for the following purposes: a. Providing a complete background as a basis for informed decisions at each step of the procurement process; b. Supporting actions taken; c. Providing information for reviews, audits, and investigations; and d. Furnishing essential facts in the event oflitigation. IMPLEMENTATION OF PROCUREMENT PROCEDURES AND GUIDELINES The Procurement Officer, in his or her discretion and subject to the review and concurrence of the Commission's General Counsel, may adopt procurement and materials management procedures and guidelines needed to implement and supplement the policies and standards set forth in this Manual. Any such procedures and guidelines should provide for timely review and processing of all procurement actions, and should ensure that procurements proceed timely, efficiently and economically, while adhering to principles of good public policy practices and sound business judgment. 5.0 AUTHORIZED METHODS OF PROCUREMENT; SELECTION A. Selection. As part of the procurement initiation process, the Procurement Officer will determine which method of procurement is appropriate. B. Authorized Methods. The following methods of procurement may be used, as appropriate, in accordance with the policies and procedures included in the Procurement Manual: 1. Competitive Sealed Bid ("Low Bid"), pursuant to Chapter 3 of this Manual; 2. Design-build, pursuant to Chapter 4 of this Manual; 3. Competitively Negotiated Procurement, pursuant to Chapter 5 of this Manual; 16 44 • • • • • • 4. Small Purchase Procedures, pursuant to Chapter 6 of this Manual; and 5. Non-Competitive and Emergency Procurement, pursuant to Chapter 7 of this Manual. 6.0 INDEPENDENT COST ESTIMATE A. AAn independent cost estimate is a determination of price reasonableness. The- ee5t estimate should be completed prior to the receipt of bids or proposals. B. The method and means of establishing the estimate may vary based on the circumstances and can range from checking historical records or published price guides to a detailed estimate in the same level of detail that is required for contractors submitting proposals. Estimates can be obtained from a design firm or in-house technical personnel tor construction work or from independent third- partv staff (not impacted by final procurement). C. The estimate provides the Procurement Officer with essential input during the solicitation process. Ge-5-tfndependent cost estimates may be used by the Commission to: 1. 2. 3 . 4. 5. 6. 7. 8. Provide a determination of value (i.e., do benefits warrant the cost); Support procurement planning; Determine the appropriate solicitation type and process based on the approval limits set forth in Chapter 2, l.O(G); Establish the competitive range and supplement the evaluation process; Provide a basis for a price analysis, which may eliminate the need for a more burdensome cost analysis; Provide a basis for development of a pre-negotiation objective; Support the Commission's negotiation position with contractor; and/or After contract award, provide essential input with respect to contract amendments, change orders and claims. 7.0 COST/PRICE ANALYSIS A. The Procurement Officer should perform a cost/price analysis in connection with every procurement action, including contract modifications. The method and degree of analysis is dependent on the facts surrounding the particular procurement situation. B. If the contract being awarded is a cost-reimbursement type, the cost/price analysis should address the realism of the various cost elements proposed, and where the costs are unrealistically low, an adjustment should be made to reflect what the Commission believes the effort will actually cost given that offeror's specific technical approach as well as its direct and indirect cost rates . 17 45 I. The Commission should, when applicable, or must, if required by law, utilize the guidelines provided in the Federal Acquisition Regulations Part 31 to determine whether of the contractor's proposed costs are reasonable, allowable and allocable. 8.0 VENDOR CONTACTS PRIOR TO ISSUANCE OF A SOLICITATION Informational and market research contacts with prospective contractors/vendors should be circumscribed based upon legitimate, identifiable business purposes and guided by the exercise of sound judgment. The primary pitfalls to be avoided are promises or implications from Commission staff of a future contract, development by a vendor of a specification or s~ope of services to be used as part of a Commission solicitation that vendor intends to participate in, requests from Commission staff for complimentary services or supplies, and other activities that may create a real or apparent conflict of interest or the impression of an obligation on the part of the Commission. 9.0 ADVERTISING I PUBLICIZING PROCUREMENTS A. The Procurement Officer should use the most efficient and effective means to publicize contract actions to increase competition in accordance with the requirements of the specific procurement. B. California PUC § 130232, applicable to the purchase of all supplies, equipment, materials and for the construction of all facilities and works when the expenditure exceeds twenty-five thousand dollars ($25,000), requires that notice requesting bids shall be published at least once in a newspaper of general circulation. The publication must be made at least 10 days before the date for the receipt of the bids. The Commission, at its discretion, may reject any and all bids andre- advertise. C. California PUC § 130238 for the purchase of computers, telecommunications equipment, microwave equipment, and other related electronic equipment and apparatus that is not available in substantial quantities to the general public requires (i) the procurement be conducted through competitive negotiation, after a finding by the Commission by a two-thirds vote that this particular procurement qualifies under California PUC § 130238, and (ii) notice of the request for proposals be published at least twice in a newspaper of general circulation, at least 1 0 days before the date for receipt of the proposals. D. Federal Transit Administration (FTA). Section 9.c ofFTA Circular 4220.1F requires that invitations for bids are to be "publicly" advertised, and Section 9.d of FTA Circular 4220.1 F requires that requests for proposals are to be publicized. E. Caltrans and Federal Highway Administration (FHWA). Chapter 15, paragraph 15.3 Project Advertisement, of the Caltrans Local Assistance Procedures Manual provides detailed guidance regarding advertising ofFHW A-and/or Caltrans- funded projects. 18 46 • • • • • • F. Pre-solicitation advertising prescribed in this section is not required for non- competitive, sole source, or emergency procurements processed in accordance with this Manual. 10.0 NON-DISCRJMINA TION IN PROCUREMENT All formal contracts entered into by the Commission should contain appropriate clauses prohibiting discrimination by the contractor against any person or group of persons on account of race, color, religion, creed, national origin, ancestry, physical handicap, medical condition, age, marital status, sex or sexual orientation in the performance of the contract. 11.0 ORGANIZATIONAL CONFLICTS OF INTEREST 12.0 An unfair competitive advantage could result if a contractor were allowed to submit a bid or proposal for work described in a specification or statement of work that the contractor itself developed. For the purpose of eliminating a potential unfair competitive advantage, and in compliance with applicable state and federal laws and regulations, a contractor that develops or assists in developing specifications, requirements, statements of work, invitation for bids, and/or request for proposals for a Commission procurement is excluded from competing for the resultant procurement, unless an appropriate waiver is issued by the Commission. All waivers will be assessed by the Commission on a case- by-case basis. DUTIES OF COMMISSION STAFF REGARDING PROCUREMENTS A. General Procuring goods, services, and contracts for the Commission must be a cooperative effort, and it will be the responsibility of all Commission staff involved in procurement to employ sound business judgment and appropriate standards of ethics and fairness to procure goods and services in a manner most advantageous to the Commission. All employees and departments are instructed to follow the procedures set forth in the Procurement Policy Manual, as well as any instructions issued by the Procurement Officer regarding procurements. B. In order to initiate a procurement action (including amendments, procurements, exercising of available options, etc.), the user department/project manager should, at a minimum, provide the Procurement Officer with the following items, as applicable: 1. Specification, Scope of Services, or Statement of Work For a new procurement, a complete and clearly written specification, purchase description, or statement of work suitable for either competition or for negotiation with a sole source contractor, if justified. a. Amendments If a contract amendment has been negotiated based upon an existing advanced pricing arrangement or labor rates/categories included in the underlying agreement, the user department/project manager should 19 47 provide the Procurement Officer with a copy of the final negotiated scope of services for the extra work, associated pricing terms, and/or schedule. b. Construction Change Orders Construction change orders should tollmv the procedures established _b.YJ.he Capital Projects Department and contract specitkations. If a construction change order has been negotiated based upon an existing advanced pricing arrangement or labor rates/categories included in the underlying agreement, the user department/project manager should maintain a record of the change order and supporting documentation in the project files including an independent cost estimate and cost and/or price analvsis. as applicable. 1. All change orders must be signed bv a Commission employee who is a registered Civil Engineer. ii. Anv chane:e order in excess of$1 00.000 also requires approval by the Executive Director. iii. Anv change order that will increase the total contract value to an amount that exceeds the contractual authoritv approved bv the Commission mav not be executed until additional contractual authority has been obtained through the Commission. 1v. The Capital Projects Director is responsible for determining that chang~ order:.?._.ill~~mocessed and apQroved in accordance with departmental and contractual requirements. 2. Agreement Summary Sheet The user department/project manager must provide a complete and executed Agreement Summary Sheet for all procurement actions, including applicable small purchases, formal procurements, MOUs, agreements, change order modifications and the like. The Agreement Summary Sheet identifies the nature of funding for the subject goods/services, provides a record that the requirement was budgeted and properly approved before the procurement process began, and ensures that the procurement action is assigned a unique agreement number for purposes of contract administration, payment, and recordkeeping. 3. Cost Estimate The user department/project manager should provide the Procurement Officer with a cost estimate for the anticipated procurement of goods/services. See paragraph 6.0 above for additional guidance regarding the development of a cost estimate. 4. Justification for Sole Source/Non-competitive Procurement (if applicable) The user department/project manager must prepare and submit to the Procurement Officer a written statement recording all the facts that 20 48 • • • • 13.0 • • provide justification for avoiding mandated competitive procurement practices explicitly defined in this Manual and/or required by relevant state and federal law in favor of a non-competitive/sole source award. The Procurement Officer must approve the sole source procurement methodology before the procurement can proceed. INSURANCE A. Contractors providing goods and services should be required to carry sufficient insurance to protect the Commission from third party lawsuits for personal injury (including death) and property damage. Insurance may also be required for damage to Commission property and for errors and omissions in the provision of professional services. B. The following types of procurement actions should be reviewed by the Procurement Officer for appropriate levels, types and limits of coverage on a case-by-case basis: 1. 2. 3. 4. 5 . 6. All Operations and Non-Operational Construction Contracts. All Professional Services Contracts. All contracts where work will be performed within "50 feet" of railroad. All Environmental Contracts, including engineering services. All procurement contracts and/or purchase agreements where outside vendors will be conducting work or performing installation services on Commission premises. All procurement contracts and/or purchase agreements where outside vendors will be delivering products to a Commission facility. C. The contract documents should ensure that Commission contractors will be required to comply with insurance requirements imposed by state and local governments. D. At a minimum, the contract documents should require the contractor and subcontractor to carry general liability, workmen's compensation, and automobile insurance coverages for public works contracts. E. In certain limited cases, the Procurement Officer may permit the contractor to substitute an approved program of self-insurance in order to obtain such approval. The contractor will have to demonstrate that it can sustain the potential losses being self-insured. F. The Procurement Officer should include insurance and indemnification provisions in equipment, supply, and services contracts in accordance with Commission policies described herein . 21 49 14.0 SUBCONTRACTING A. The Commission may consider requiring a prime contractor to perform certain tasks or a minimum percentage of the work, in order to ensure that the prime contractor maintains a specified degree of control over the project. B. Approval of contractor proposed subcontractors usually involves an evaluation of three primary areas: 1. Assurance that the prime contractor has included the required "flow- down" provisions (clauses) from the prime contract in the subcontract. 2. The prime contractor's compliance with the Disadvantaged Business Enterprise (DBE) requirements in its prime contract. 3. Assurance that the prime contractor has selected its critical subcontractors in a prudent fashion, so as to protect the Commission's interests. 15.0. DETERMINATION OF FAIR AND REASONABLE PRICE A. The Procurement Officer should determine, in writing, that the price to be paid to the successful offeror is fair and reasonable. Typically, adequate price competition is sufficient to establish price reasonableness; however, price reasonableness may also be established through: 1. Prices established by Jaw or regulation; 2. Published catalog or market price for commercial product sold to the public in substantial quantities; 3. Previous or relevant historical pricing for same or similar terms; 4. Valid cost estimate; 5. Value analysis; or 6. Cost/price analysis. B. Single Offer/Lack of Adequate Competition I. Upon receiving a single bid or single proposal in response to a solicitation,_ the Procurement Officer should determine if competition was adequate. a. Such determination should include a review of the specifications for offer:·; orundue restrictiveness and may include a survey of potential sources that chose not to submit a bid or proposal. b. If the results of the review are that the scope of work was so restrictive that only one firm could have responded. then there is a lack of competition. The Procurement Officer should ( l) cancel and re-procurc the solicitation or 12) treat the solicitation as a sole source procurement if it meets the requirements of Chapter 7 of this Manual. c. If the results of the review are that the scope of work was not restrictive and more than one firm could have responded. then 22 50 • • • • • • there is adequate competition. The Procurement Otticer may recommend an award of the a!!reement to the single offeror, as determined bv the Commission. in accordance with this Manual and in accordance with applicable kl.!al requirements. 2. When the price variance between multiple responses reflects a lack of adequate competition, the Procurement Officer may rer;olicitre-solicit quotes or, if appropriate, recommend an award of the agreement to the single offeror, or to the lowest or best offeror, as determined by the Commission, in accordance with this Manual and in accordance with applicable legal requirements. ib--3. A recommendation for award under either of the above circumstances should include a statement in the contract file giving the basis for the determination (e.£!., that there was adequate competition and/or the pricing terms are fair and reasonable-o1 16.0 CONTRACT APPROVAL, A WARD AND EXECUTION A. Following authorization for contract award by the Commission, the following actions should be taken: 1. The Procurement Officer requests all Commission required documents and contract contingency requirement (e.g., bonds, proof of insurance) from the successful contractor. 2. 3. The Procurement Officer conforms and sends copies ofthe final contract or amendment to the contractor for signature, and obtains the appropriate Commission authorization by ensuring full execution of the contract. After full execution of the contract and the contractor's submittal of the required contract contingency items, unless otherwise agreed, the Procurement Officer coordinates with the user department/project manager to prepare a "Notice to Proceed" letter, if required. 4. The Procurement Officer transmits a fully executed original copy of the contract to the contractor. Conformed copies should be sent to the project manager for use in the administration of the contract. 5. Contract Administration Responsibilities a. The user department/project manager conducts all further coordination on technical issues between the contractor and the Commission, subsequent to the issuance of the "Notice to Proceed': letter. b. Issues affecting the business or legal terms in the contract and/or requests for modification or supplemental agreements to the contract should immediately be brought to the attention of the Procurement Officer. c. The contract and all documents pertaining thereto should be maintained by the Procurement Officer, except for construction change orders which will be maintained by the project management team . 23 51 17.0 PROTEST PROCEDURES A. Under formal procurement processes described under this Manual, an interested party that has timely submitted a bid or proposal in response to any procurement of the Commission may file a protest objecting to the award of a contract. B. In order for a protest to be considered properly and timely filed, the protest must: 1. Be filed in writing with the Executive Director of the Commission, within seven (7) calendar days after (i) all requests for clarifications and requests for approved equals have been answered by the Commission or, if no requests for clarification or approved equals are received, after the period for requests for clarifications or approved equals has closed; (ii) after the Commission takes action, or such other time period as may be specified in the solicitation document; or (iii) the date certain contained in the solicitation for any solicitation for which a contract award is not made by the Commission. 2. Be filed by an actual bidder or proposer responding to the procurement and signed by a properly authorized representative. No other party has standing to protest or is considered an interested party. 3. Identify the specific procurement number involved. 4. 5. Identify the specific recommended action or decision being protested. Specify in detail the grounds for the protest, the facts supporting the protest and the status of the protester. 6. Include all relevant supporting documentation with the protest at the time of submittal. 7. Describe the resolution to the protest desired by the protesting party. If a protest does not comply with each of the seven (7) requirements listed above, the protest will not be considered and will be returned to the protester. C. The Procurement Officer will attempt to resolve a properly filed protest or perform additional fact-finding, including establishing a protest evaluation team to evaluate the merits of the protest. The Procurement Officer, in consultation with the Commission's General Counsel, will prepare a recommended resolution of the protest for consideration by the Executive Director. The Executive Director will review the recommendation of the evaluation team and will render a determination to uphold or deny the protest. D. If the Executive Director's decision is to deny the protest, the solicitation may be continued without further delay or the contract will be recommended to the Commission for award, or executed, if previously awarded by the Commission subject to resolution ofthe protest. If the Executive Director's decision is to uphold the protest, a recommendation will be made to the Commission to amend the solicitation and the date for receipt of proposals or bids, reject all proposals or bids, cancel the Request for Proposals or Invitation for Bids and solicit new 24 52 • • • • 18.0 • • E. F. proposals or bids, award the contract to another proposer, or other such actions as he/she deems appropriate. The Executive Director's decision shall be final, and there shall be no further administrative recourse at the local level, except for protests related to federally funded procurements. The procedures set forth in this Chapter 2, Section 17.0 are not intended to reduce or restrict protest rights specifically provided under applicable funding agreements, or state or federal laws authorizing the use of money funding applicable contracts. l,_ ____ jn_illl:L_.QI.Qcurement involving FTA funds. the Procurement Ot11cer shall disclose information regarding the protest to FTA and shall keep FTA infbrmed about the status of the protest. ! An interested party that has filed a protest must exhaust all administrative remedies \Vith the Commission before pursuing a prQ!Yst with FTA. PUBLIC RECORDS REQUESTS All requests for procurement related records and/or information must be submitted to the Commission's Office and Board Services Manager for appropriate action. Procurement related records should not be disclosed as public information until staff recommendation for award has been forwarded to all interested parties or as otherwise appropriate under the California Public Records Act and applicable state and federal laws, guidelines and requirements . 25 53 • • • CHAPTER 3-COMPETITIVE SEALED BIDS ("LOW BID") A. Public Utilities Code Section 130232 requires that the purchase of all supplies, equipment, and materials, and the construction of all facilities and works, when the expenditure required exceeds twenty-five thousand dollars ($25,000), must be by competitive sealed bidding, also known as "low bid", contracting, with the contract let to the lowest responsive, responsible bidder. Notice requesting bids must be published in at least one newspaper of general circulation. The publication must be made at least ten (1 0) days before the date for receipt of bids. The resulting contract will be a fixed price contract. B. In order for competitive sealed bidding to be most effective, the following conditions should be present in the development of an Invitation for Bids (I FB): I. A complete, adequate and sufficiently generic specification is developed; 2. Adequate competition is available in the marketplace (two or more responsive and responsible bidders will compete); and 3. The procurement lends itself to a firm-fixed price contract. C. Discussions and Communications I. Bids shall be evaluated without discussions with bidders. 2. Information concerning proposed procurements should not be released outside the Commission before an Invitation for Bids is released, except for pre-solicitation notices and publicly available general project information. D. Pre-Bid Conferences I. The Contracting Officer may use pre-bid conferences to explain procurement requirements. 2. If the Commission requires any type of mandatory pre-bid conference, site visit, or meeting, the IFB should include the time, date, and location of the mandatory pre-bid site visit, conference or meeting, and when and where project documents, including final plans and specifications are available. Any mandatory pre-bid site visit, conference or meeting should be no sooner than a minimum of five (5) calendar days following the publication ofthe IFB. E. Bid Addenda I. If it becomes necessary to make changes in quantity, specifications, delivery schedules, opening dates, or other items, or to correct a defective or ambiguous IFB, the change should be accomplished by addendum of the IFB. 2. Addenda to an IFB should be identified as such and should require the bidder to acknowledge receipt of all addenda issued . 26 54 F. Time Of Bid Receipt The IFB should specify a time for receipt of bids. Bids must be received in the office designated in the IFB not later than the time identified in the IFB. G. Late Bids Unless otherwise specified in a particular bid solicitation, bids are considered late based on the time clock at the 3rct floor Commission Receptionist Desk, located at 4080 Lemon Street, Riverside, CA 92501. Bids are considered late ifthe time stamped by the Commission upon receipt of the bid is later than the deadline/time identified in the JFB. Late bids will not be accepted by the Commission, unless a bid is late owing solely to Commission mishandling or some other legitimate extenuating factor, as determined in the Commission's sole discretion. H. Receipt Of Bids As bids are received, the Procurement Officer should secure and safeguard the bids until the established time for bid opening. I. Opening Of Bids The Procurement Officer will coordinate the bid opening. All bids over $25,000 for construction received prior to the bid opening will be publicly opened, read aloud to the persons present, and recorded. Bid opening documentation should include the date. time. and place of bid opening and a tabulation of bidder names • and related bid amount. Such bid opening documentation should include the • signature of at least one witness. J. Recording Of Bids Construction bids over the small purchase threshold of $25,000 that are publicly opened will be recorded on a Bid Summary or Bid Tabulation sheet. The Procurement Officer should certify the accuracy of the Bid Summary Sheet by placing his/her signature thereon. The Commission's Procurement Officer should ensure that these results are posted on the Commission internet site within a reasonable time after bid opening. K. Tie Bids If two or more responsible and responsive bids are received for the same total or unit price, quality and service being equal, the Commission may, at its discretion, do any of the following: 1. Accept the one it chooses; 2. Accept the lowest bid made by negotiation with the tied bidders; or. 3. Establish a date and time to draw lots, which may be accomplished by tossing a coin or pulling bidder names out of a hat, to determine the winner. If this process is selected, the Commission should: a. Advise the tied bidders in writing that a tie has occurred, advise them a winner will be determined by drawing lots, and invite them to attend the drawing. 27 55 • • • • b. Conduct the drawing of lots on the date and time previously established with at least two individuals as witnesses. The procurement file should reflect the names, titles, and departments of the witnesses. Ifthe witnesses are not Commission staff, the name, organization, address, and telephone number ofthe individuals should be listed . 28 56 • • • CHAPTER 4-DESIGN-BUILD CONTRACTS 1.0 PURPOSE A. As set forth in Public Contract Code (PCC) Section 6800 et seq., the legislature has determined that the design-build method of procurement should be evaluated for the purposes of exploring whether the potential exists for reduced project costs, expedited project completion, or design features that are not achievable through the traditional design-bid-build method. The Commission has been selected, as one of a limited number of participants, to participate in the Design- Build demonstration program with the SR-91 Corridor Improvement Project (SR- 91 CIP). B. For the purposes of this Chapter, "Design-Build" means a method of procuring design and construction from a single source. The selection of the single source occurs before the development of complete plans and specifications. 2.0 PROCEDURES FOR DESIGN-BUILD CONTRACTS A. The Executive Director may adopt any lawful methods, procedures and criteria that he or she determines are in the best interest of the Commission. B. c. The Toll Program Director, through coordination with the Procurement Officer, will prepare documents for the solicitation of proposals for the SR-91 CIP design- build procurement . The documents prepared for the SR-91 CIP design-build procurement shall control over any conflicting provisions contained herein . 29 57 • • • CHAPTER 5-COMPETITIVELY NEGOTIATED PROCUREMENTS 1.0 NEGOTIATED PROCUREMENTS -GENERAL A. This Chapter outlines the Commission's procedures for competitively negotiated procurements for contracts: 1. Not legally required to be procured through the low-bid competitive procurement method pursuant to Public Utilities Code Section 130232; and 2. Intended to be awarded on the basis of both price and non-price factors. B. A procurement is "negotiated" if discussions, negotiations, or other exchanges between the Commission and the offerors are anticipated and planned in order to maximize the Commission's ability to communicate, understand, and obtain the best value for contract award. c. 1. The exchanges involve bargaining, persuasion, alteration of assumptions and positions, and give-and-take applied to price, schedule, technical requirements, type of contract, and other proposed terms. 2. The exchanges after establishment of the competitive range of price and terms are done with the intent of allowing the offeror to revise its proposal, once and potentially several times . Though not an all-inclusive listing, competitively negotiated procurements can be used for the following types of procurements: 1. Professional services contracts for non-architect-engineer related services; miscellaneous service contracts; 2. Architect-Engineer and related services contracts as further defined and subject to the limitations specified in Section 6.0 of this Chapter; 3. Specialized equipment, computers, telecommunications equipment, microwave equipment and other related electronic equipment and apparatus; or 4. Best Value, Design-build contracts described in Chapter 4. 2.0 SOURCE SELECTION TECHNIQUES A. The Procurement Officer can choose from a range of source selection techniques for the competitively negotiated process based on: 1. What is suitable for the specific circumstances of a requirement, and 2. Which technique provides the best opportunity to tradeoff price/cost and qualitative benefits in order to gain the best value for the Commission. B. In acquisitions where the requirement is clearly definable and the risk of unsuccessful contract performance is minimal, and excluding contracts for 30 58 Architect-Engineer and related services, cost or price may play a dominant role as a significantly important evaluation factor for award. C. On the other hand, the less definitive the requirement, a requirement for technical superiority, more development work required, or the greater the performance risk, then the technical or past performance considerations play a more dominant role as significantly important evaluation factors for award. D. The Commission obtains best value in negotiated acquisitions by using any one or a combination of selection approaches wherein the relative importance of cost or price may vary with other non-cost or price factor(s). The Procurement Officer and user department/project manager should select an approach that will provide the Commission with the best offer based on the requirements, and on applicable legal requirements. E. F. All evaluation factors associated with a particular proposal should be identified along with their relative importance. The Procurement Officer, in cooperation with the user department/project manager, may utilize explicit factors, price performance trade off, technically qualified/lowest price or other reasonable and appropriate means of evaluating proposers. Proposals will be solicited from an adequate number of qualified sources. In determining sources to solicit, the Procurement Officer should use all reasonable means available to ensure that an adequate number of potential qualified proposers receive the solicitation in order to obtain maximum fair and open competition. 3.0 PROPOSAL EVALUATION A. The evaluation factors that will be considered in evaluating proposals should be tailored to each procurement and should include only those factors that will have an impact on the source selection decision. The evaluation factors that apply to a particular procurement and the relative importance of those factors are within the broad discretion of the Procurement Officer and/or the user department/project manager. B. The Procurement Officer may establish a formal evaluation committee, referred to as the "Evaluation Committee," which will be charged with responsibility for evaluating proposals, short listing firms, establishing a competitive range, and/or recommending a firm or firms for contract award. c. 1. Personnel engaged in the evaluation process should not discuss or reveal information concerning the evaluations except to those individuals participating in the same proceedings and only to the extent that information is required in connection with such proceedings. 2. Divulging information during the evaluation, selection, and negotiation phases to offerors or to personnel not having a need to know is prohibited as it could jeopardize the evaluation process and resultant award. The Evaluation Committee will evaluate each proposal in accordance with the evaluation criteria in the solicitation. The Evaluation Committee's selection 31 59 • • • • 4.0 5.0 • 6.0 • decision is subject to the final approval of the Commission or the Executive Director, as required under this Manual. REJECTION OF PROPOSALS A. The Evaluation Committee may reject all proposals received that are determined not to be in the competitive range, including those proposals made by offerors who refuse to execute any reasonably required representations and/or certifications. B. The Commission, based upon the recommendation of the Evaluation Committee or the Executive Director, may reject any or all proposals received. The Evaluation Committee or Executive Director may recommend rejection by the Commission because: 1. All otherwise acceptable proposals received are at unreasonable prices; 2. The proposals were not independently arrived at in open competition, were collusive or were submitted in bad faith; or 3. For other reasons, rejection is clearly in the Commission's best interest. NEGOTIATION; SELECTION The methods and procedures for selection and negotiation will be determined by the Procurement Officer, in coordination with the user department/project manager, and set forth in the request for proposals. SPECIAL PROVISIONS APPLICABLE TO ARCHITECT -ENGINEER AND RELATED SERVICES A. This Section prescribes guidelines and requirements for the procurement of Architectural-Engineering ("A-E") and related services. A-E Services are defined as professional services of an architectural or engineering nature that are required by law to be performed by a registered or licensed architect or engineer. Related services include: land surveying and construction project management. For the procurement of A-E and related services, the Procurement Officer should follow the procedures set forth in this Section 6.0, in addition to the pertinent procedures set forth 'elsewhere in this Chapter. B. If the procurement is for A-E and related services, the selection must be based on the demonstrated competence and qualifications of prospective contractors, and should follow the procedures set forth in Government Code 4525, et seq., and, when applicable, the laws and regulations that govern the procurement of design- related services with federal funds (see e.g., Title 23 U.S.C. 112, Letting of Contracts and 23 CFR 172, Administration ofEngineering and Design Related Service Contracts). These services should be acquired based on a two-step, sealed bidding procedure, whereby qualifications are presented in a separate sealed envelope from a firm's price proposal. The proposals should be initially evaluated based on qualifications only, and price negotiations should be commenced with the proposer determined by the Commission to be most 32 60 qualified. If the Commission is unable to negotiate satisfactory terms, at a fair and reasonable price, with the proposer considered to be most qualified, then negotiations should be terminated with that proposer and commenced with the next most qualified proposer. 33 61 • • • • • • CHAPTER 6-SIMPLIFIED PURCHASE PROCEDURES 1.0 GENERAL A. Procurement of materials, supplies, or services by the Commission should adhere to the procedures in this Manual, as described in Chapter 2, Section l.G. The procedures ensure that the appropriate authorizations are secured for the type of procurement made, and that the minimum requirements associated with the materials, equipment, supplies or services requested are procured in a fair and open manner. B. This Chapter sets forth the procedures for small purchases and other simplified purchase procedures. These purchases should be made competitively except where it is in the best interests ofthe Commission to accomplish such purchases non-competitively. Justification for such non-competitive procurement should be made, in writing, and maintained in the procurement record. 2.0 REQUIREMENTS FOR MICROPURCHASES A. B. If the purchase price for required supplies, equipment, services and/or materials is considered a micropurchase as defined in Chapter 2, Section l.G, then multiple quotes are not required; however, stich purchases should be fairly priced using a purchase technique that best serves the needs of the Commission, and rotated among commercial vendors offering competitive pricing . Micropurchases may be accomplished by securing one proposal or quotation from a commercial vendor offering supplies, equipment or materials to the public in substantial quantities and the price is deemed to be fair and reasonable. a. For FTA-funded procurements. the determination that the price is tair and reasonable and how the determination was derived must be included as documentation in the procurement file. C. If oral quotes are obtained, written record of the quotes should be retained. The record should include, at a minimum, vendor name, telephone number and address, name of person providing the quote, and terms. 3.0 USE OF SMALL PURCHASE PROCEDURES A. For small purchases as defined in Chapter 2, Section l.G, staff should obtain a minimum ofthree (3) written quotations with reasonable efforts to include at least one Disadvantaged Business Enterprise (DBE) vendor and, when practicable and appropriate, an award should be made on the basis of lowest price. B. For public works projects (i.e., maintenance, repair or construction work) and planned solicitations for services defined as small purchases in accordance with Chapter 2, Section 1 .G, review by the Procurement Officer prior to the solicitation of quotes is required in order to ensure compliance with relevant insurance requirements, applicable legal mandates, e.g., insurance, bonding, prevailing wage, and payroll records . 34 62 c. The Procurement Officer should use and/or authorize the Small Purchase Procedures that are most suitable, efficient, and economical based on the circumstances of each procurement and detenn inc that the price is fair and reasonable. 4.0 PROHIBITED USE OF SMALL PURCHASE PROCEDURES The Procurement Officer and or Commission staff may not divide, split or fragment a procurement totaling more than the Commission's small purchase limitation into several purchases that are less than the limit in order to use the Small Purchase Procedures. 35 63 • • • • • • CHAPTER 7-NON-COMPETITIVE AND EMERGENCY PROCUREMENTS AND REMEDIAL MEASURES 1.0 NON-COMPETITIVE PROCUREMENTS A. The non-competitive procurement of goods and services, which otherwise require competitive procurement may be authorized under one or more of the following circumstances, subject to any minimum Commission vote required by applicable law: 1. The Commission has advertised the contract as required by this Manual and has undertaken reasonable efforts to solicit potential contractors, but has determined that competition is inadequate; 2. There is only a single source of supply available, or only one contractor is qualified to provide the service or product; 3. The goods or services are to be provided by a government or other public entity; 4. The goods or services are to be provided pursuant to an amendment of an existing contract that does not materially alter the terms and conditions of the contract (other than to extend the term and/or increase compensation to provide for the extended term or for additional goods/services to be provided under substantially the same terms of the original contract), provided that such renewal, extension or amendment is authorized or permitted by the contract; 5. The equipment to be purchased is of a technical nature and the procurement thereof without advertising is necessary in order to assure standardization of equipment and interchangeability of parts; 6. The item to be purchased is a capital maintenance item that is available only from the original manufacturer or supplier or is required to maintain system operational compatibility and connectivity with the existing system(s); 7. The contract is for employment services; 8. The contract is one for which only per diem and travel expenses are paid and there is no payment for services rendered; and 9. The Commission is piggybacking on an existing agreement between a contractor and any public agency or entity within the County of Riverside and/or the County of San Bernardino, or other public entities if: (a) the proposed Commission contract is for the same material scope of work as the other contract; (b) the proposed Commission contract contains substantially the same terms as the other contract; and (c) the other contract was competitively procured in accordance with requirements applicable to such other agency's procurements; or 36 64 10. The provisions listed under Chapter 8, Section 3.0 regarding federally funded sole source, non-competitive, sole source procurements are applicable. II. Except as may otherwise be limited by applicable law, the Commission determines that a non-competitive procurement is in the public interest and in the best ,interest ofthe Commission. C. Except as limited by applicable law, the Executive Director shall have authority to determine that non-competitive procurements are permitted under paragraph A, subparagraphs (1) through (11) for contracts for amounts less than or equal to $1 00,000. Commission approval is required for contracts over $100,000. Each decision to proceed with a non-competitive procurement must be supported by a written justification that is approved by the Executive Director or Procurement Officer, as required under this Manual. D. The Procurement Officer will take action, whenever possible and in coordination with the user department/project manager, to avoid the need to continue to procure the same supply, service, or construction without competition. E. A non-competitive or sole source procurement, where competition is legally required, should not be justified on the basis of any of the following circumstances: 1. 2. The lack of adequate advance planning for the procurement of the required commodities, services, or other items; Delays in the procurement caused by administrative delays, lack of sufficient procurement personnel, or improper handling of procurement requests or competitive procedures; or 3. Pending expiration of budget authority. F. The Procurement Officer should ensure that each non-competitive contract contains all ofthe required clauses, representations, and certifications, in accordance with the applicable laws, regulations, or Commission adopted policy. G. The Procurement Officer should ensure that proper records of each non- competitive procurement are maintained. 2.0 EMERGENCY PROCUREMENTS; REMEDIAL MEASURES A. The Commission may award a contract on an emergency basis if the requirement is essential to deal with an existing emergency condition, as defined below in Paragraph "B", and the Executive Director may award a contract when necessary as a remedial measure as defined below in Paragraph "C". The emergency procurement of supplies or services and procurements as a remedial measure should be limited to quantities and time periods sufficient to meet the immediate threat and should not be used to meet long-term requirements. B. For purposes of an emergency procurement under this Chapter, an "emergency condition" is a situation (such as a flood, epidemic, riot, equipment failure, or any other reason declared by the Commission) which creates an immediate threat to 37 65 • • • • • • the public health, welfare, or safety. The existence of an emergency condition creates an immediate need for supplies, services, or construction which cannot be met through normal procurement methods, and the Jack of which would seriously threaten one (I) or more of the following: 1. The health or safety of any person; 2. The preservation or protection of property; 3. The continuation of necessary Commission functions; or 4. Contract delays that could result in an increase to the cost of the project. In the case of contracts for services, the Executive Director may declare the emergency condition. C. The Executive Director may authorize th expenditure of funds previously appropriated by the Commission for the direct purchases of goods and services, without following bid requirements (i) when a finding is made that immediate remedial measures are necessary to avert or alleviate damage to property, or to replace, repair, or restore damaged or destroyed property, of the Commission and are necessary in order to ensure that the facilities of the Commission are available to serve the transportation needs of the general public, and upon determining that available remedial measures, including procurement or construction in compliance with Public Utilities Code Sections 130232, 130233, and 130234, are inadequate . D. A contract procured on an emergency basis or as a remedial measure should not be modified to expand the scope or extend the time of the procurement unless a limited number of additional commodities, services, or other items are needed to fill an ongoing emergency requirement until regular procurement action procedures initiated under other Chapters in this Manual can be completed. E. The Executive Director must, after an emergency expenditure in excess of his/her delegated signature authority, and after an expenditure necessary as a remedial measure, submit to the Commission a procurement summary explaining the necessity for the expenditure. F. The Procurement Officer should ensure that each emergency procurement contract and/or contract entered into as a remedial measure contains the required clauses, representations, and certifications, in accordance with the requirements of this Manual. G. The Procurement Officer should ensure that proper records of each non- competitive procurement are maintained in accordance with the requirements of this Manual. 3.0 WRlTTEN JUSTIFICATION FOR EMERGENCY AND OTHER NON- COMPETITIVE PROCUREMENTS A. In each instance where the non-competitive procurement procedures set forth in this Chapter are used, the user department/project manager is required to prepare 38 66 a written statement recording all of the facts that provide justification for proceeding with the non-competitive or emergency procurement. B. The Procurement Officer must approve the justification for all non-competitive procurements described under this chapter before such a procurement can proceed. 39 67 • • • • • • CHAPTER 8-REFERENCES TO APPLICABLE LAWS !REGULATIONS 1.0 GENERAL A. This Manual lists references to the various federal, state, and local regulations, to which the Manual was written to conform and/or comply. B. The Procurement Officer will be responsible, in cooperation with the Commission's General Counsel, for reviewing these references from time to time in order to review new requirements and to note updates to the existing regulations. 2.0 REFERENCES A. B. For the Commission's capital projects and contracts for goods and services utilizing Federal Transit Administration's (FTA) or Federal Highway Administration (FHW A) funds, the provisions included in the Manual will apply only to the extent that they do not conflict with FT A or FHW A requirements, including the standards of FTA Circular 4220.1 F, or the most current version thereof, entitled "Third Party Contracting Requirements" or FHW A Form FHWA-1273 entitled "Required Contract Provisions Federal-Aid Construction Contracts." In case of any conflict, the applicable federal standards shall govern. The foregoing documents, though not all-inclusive, set forth requirements that the Commission must comply with in the solicitation, selection and administration of contracts funded by the FTA and FHW A, respectively. For projects funded by Caltrans and/or FHWA, the selection process shall be in accordance with Chapter 1 0 of Caltrans' Local Assistance Procedures Manual. http://www .dot.ca.gov/hg/LocalPrograms/lam/prog p/p 1 Oconsl.pdf C. FT A Circular 4220.1 F (or the most current version thereof) sets forth the requirements the Commission must adhere to in the solicitation, award, and administration of its third party contracts. FTA Circular 4220.1 F applies to all FT A grantees and subgrantees that contract with third parties under FTA assistance programs. a. In addition to the requirements set forth in this Chapter 8, the FT A standards for competition are set forth generally in Chapter I hereof and the FT A procedures for competitive sealed bid ("low bid") procurements and competitively negotiated procurements are set forth in Chapters 3 and 5 hereof, respectively. D. Some of the requirements include the following: I. Pre-Award Audits. A pre-award (pre-negotiation) audit shall be completed, as required based on the participating state or federal funds, for each consultant contract, including those contracts where the consultant was previously identified as a "high-risk" recipient as described in 49 CFR Part 18.12 . 40 68 2. Brooks Act Provisions. The provisions of the Brooks Act (40 USC 544) require local agencies to award federally funded engineering and design contracts on the basis of fair and open competitive negotiations, demonstrated competence, and professional qualifications (23 CFR, Section 172). 3. Required Contract Provisions/Forms include: a. Disadvantaged Business Enterprise • Notice to Proposers Disadvantaged Business Enterprise Information • Standard Agreement for Subcontractor/DBE Participation • Local Agency Proposer UDBE Commitment (Consultant Contracts) • Local Agency Proposer DBE Information (Consultant Contract) • Final Report-Utilization ofDisadvantaged Business Enterprises (DBE), First-Tier • Subcontractor Listing b. Federal Lobbying Restrictions, Title 31 U.S.C. Section 1352 • Non-lobbying Certification for Federal-aid Contracts • Disclosure of Lobbying 4. Caltrans/FWHA Authorization to Proceed. FHWA or Caltrans acting in FHWA's behalf must give the local agency an "Authorization to Proceed" with a project prior to the performance of any work for which federal reimbursement is to be requested, including the pre-award audit. Copies of the "Authorization to Proceed" and the consultant contract must be retained in the project files for future audit purposes. 5. Certification of Consultant and Local Agency. The Procurement Officer will be responsible for ensuring that, when required, the certifications shown in Exhibits 1 0-F, "Certification of Consultant," and 1 0-G, "Certification of Local Agency" of the Caltrans Local Assistance Procedures Manual are incorporated into the solicitation and executed by the appropriate signatories. a.· The certifications must be executed by a principal or authorized corpm:ate official of the consultant, and by a principal administrative officer of the governmental agency responsible for the selection of the consultant. It is essential that these certifications be preserved in the project files . .Q~. Though not an all-inclusive listing, the following laws, regulations and code sections are applicable to Commission contracts: 41 69 • • • • Federal Statute, Regulations, Policies, and Agreements Subject 49 CFR Part 18 49 CFR Part 26 FTA Circular 4220.1 x FTA Circular 5010.1x Administrative Requirements for Grants & Cooperative Agreements Master Agreement Federal Acquisition Regulation 23 U.S.C. 114 / 23 CFR 633 23 U.S.C. 315 _/ 49 CFR 1.48 Participation by Minority Business Enterprises; Disadvantage Business Enterprise (DBE) Program Third Party Contracting Requirements Grant Management Guidelines Terms & Conditions of Grantee Administration of Projects Supported & Funded by the FTA Federal Acquisition Regulation (FAR) Part 31 — Contract Cost Principles and Procedures Form FHWA-1273 entitled "Required Contract Provisions Federal -Aid Construction Contracts." CA State Codes I Section(s) ! Subject Civil Code 3247-3248 Civil Code 3320 Code of Civil —' 995.311 Procedure Payment Bond Payments to Prime Design Professionals Bond Issuer Requirements Government Code 4525 et seq. Government Code 6250 - 6270 Government Code _ 5956 et seq. Public Contract Code Public Contract Code Public Contract Code Public Contract Code Architect & Engineering Services Public Records Disclosure ---------- ----Y infrastructure Projects Labor Code 1777.1 Debarment by California Labor Commissioner Labor Code 1770-1780 Prevailing Wage, Work Hours, Certified Payroll Records, Apprentices Public Contract Code 1103 Responsibility on Public Works Contracts Public Contract Code 1104 - , Plans and Specifications 3300 Contractor's License 3400 Brand Name OR Equal; Restrictive Clauses 4100 - 4114 Subcontracting 5100 - 5107 Relief of Bidders Public Contract Code 6100 - 6610 Public Contract Code 6800-6813 Public Contract Code 7100 - 7200 Public Contract Code 7103 Public Contract Code 9201 - 9203 Public Contract Code 10335 et seq. Public Contract Code 20101 Public Contract Code Public Contract Code Public Contract Code Public Contract Code Awarding of Contracts Design/Build Demonstration Program Contract Clauses, Non -Collusion Affidavit Payment Bond for Public Works >$25,000 Claims and Disputes Service Contracts Prequalification [ 20103.6 Limitation on Architect's Indemnity Obligation — y 20103.8 Alternative Bids 20104 Resolution of Construction Claims 20104.50 Progress Payments on Public Works 42 70 I CA State Codes I Section(s) I Subject ,. u:~-~~!i.~.~~!:l.t.r.-'l..~_t .. ~.\>~.e.-.... 1 ... ?..??..9.Q .................................. J ... ~.l!~.s_t.i.!~.tJ~!.l .. g.f..~~~~.r.i.!.i.e..~ ............................................ -.. ······-·····-·····-·-·····-·····..1 I, Public Utilities Code i 130221 ! Contracting With Other Government Agencies and ! :·-···-·-. ··········--.......... ···-···· ··-. ·-..... J .................................................... J . .Q~.~.e..r..Y~.r.~g·~·~··-···········-·-································-·····················-······················-········-·········J ~Public Utilities Code 130232-! Award ofContracts Based On Price or Price and ' 130239 ! Other Factors; Bid Security; Emergency I Procurements; Advertising; Immediate Remedial [ Measures; Rejecting Bids r-P~b·i;·c--uiil.it'i~·~--c:~-d~---·-·:····i·3o2·3·2:c~Y···················--1···1\-~ih·~~ii~ii~~··-~-f£·~~c~ii~~·-oi~~ci0r .. rc;·;-riid·-··· L.. , I Expenditures <$50,000. , t.f~~!I~~Qt.T!E:~~~:~~~~::~:]:::I~~Q~I~I~L:~:::~~:.::: .. :.J.::~I~:::§.~:~:~~dix.I~~::~~~~!i.~~i:i_?.~::~?.i.~.?.~~~~2:9:§::::~::::::::::.:J 3.0 FTAIFHWA-FUNDED PROCUREMENT BY NON-COMPETITIVE (SOLE SOURCE) PROPOSALS A. Notwithstanding any other provision herein, federally funded contracts must comply with the federal requirements for non-competitive or sole source procurements. Non-competitive or sole source procurements are accomplished through solicitation of a proposal from only one source, or after solicitation of a number of sources, competition is determined inadequate. A contract change that amounts to a "cardinal change" as defined in FTA Circular 4220.1 fthat involves a major deviation from the original purpose is considered a sole source procurement on a federally funded contract that must comply with this paragraph. 1. Procurement by noncompetitive proposals may be used only when the award of a contract is infeasible under small purchase procedures, competitive sealed bids, or competitive proposals and at least one of the following circumstances applies: a. The item is available only from a single source; b. The public exigency or emergency for the requirement will not permit a delay resulting from competitive solicitation; c. FTA/FHW A, as applicable, authorizes noncompetitive negotiations- e.g., ifFTA/FHWA, as applicable, provides a joint procurement grant or a research project grant with a particular firm or combination of firms, the grant agreement is the sole source approval; d. After solicitation of a number of sources, competition is determined inadequate; e. The item is an associated capital maintenance item as defined in 49 U.S.C. §5307(a)(l) that is procured directly from the original manufacturer orsupplier of the item to be replaced. The grantee must first certify in writing to FT A: 1. that such manufacturer or supplier is the only source for such item; and 43 71 • • • • • ii. that the price of such item is no higher than the price paid for such item by like customers; or f. Any other circumstance justifying sole source procurement set forth in the applicable federal rules and regulations. 2. A cost analysis, i.e., verifying the proposed cost data, the projections of the data, and the evaluation of the specific elements of costs and profit, is required. 4.0 DISADVANTAGED BUSINESS ENTERPRISE A. In order to ensure the Commission's compliance with the federal Disadvantaged Business Enterprise (DBE) Program on all applicable procurements funded with United States Department ofTransportation (DOT) dollars, the Commission will make reasonable efforts to utilize disadvantaged business enterprises in compliance with applicable federal regulations. B. C. The Commission's procurement process is structured to ensure that its DBE Program supports the Commission's commitment to promote, foster and utilize disadvantaged business enterprises as required and defined by applicable federal regulations. As a condition of funding assistance, and in accordance with DOT Disadvantaged Business Enterprise regulations published in applicable federal regulations, the Commission is required to submit for approval a Disadvantaged Business Enterprise Program and regular DBE goals, which it will make good faith efforts to achieve through procurement actions carried out under this Manual. ~5.0 GEOGRAPHICAL PREFERENCES A. For any FTA-funde.d contracts. except when procuring A-E services. the Commission is prohibited from using statutorily or administratively imposed in- state or local geographical preferences in the evaluation of bids or proposals unless fhieral statutes expressly mandate or encourage geographic preference. 6.0 REVENUE CONTRACTS 7.0 A. The Commission may enter into revenue contracts with a third party whereby the primary purpose is to either Qenerate revenues in connection \Vith a transit-related activitv or create business opportunities utilizing an F'IA-funded asset. ·rhe FfA requires such third partv revenue contracts to be awarded utilizin!l competitive selection procedures and principles. The extent of and tvpe of competition required is within the discretionarv jud!lment of the Commission. STATUTORY AND REGULATORY REQUIREMENTS The Commission shall comply with applicable federal statutory and regulatory requirements (such as Davis-Bacon Act, Disadvantaged Business Enterprise, Debarment and Suspension, Clean Air, Environmental and Conservation Requirements, Buy America and Cargo Preference) in carrying out federally-funded procurement actions 44 72 under this Manual. Below is a contract clause matrix that is applicable to third-partv contract provisicms tor federally funded contracts. excluding micropurchases and except for Davis-Bacon requirements which applv to contracts exceeding $2.000. The matrix should be reviewed at least annually for any regulatorY changes. No Federal Government Obli<>ations to Third Parties (bv Use of a Disclaimer) False Statements or Claims and Criminal Fraud Civil 1\eeess to Third Partv Contract Records Changes to Federal Reouirements Termination Civil Rights (Title VI. ADA. EEO except Snecial DOL EEO clause for construction. proiccts) Special DOL EEO clause for construction projects Disadvantaocd Business I:):We!:Pti.:>§{Q_l}J~~) J ncnrporation of FT A Terms Debarment and Suspension Buv ;\merica lk:;;oiution oi"Disputes. Breaches. or Other Litigation Lobbvinu Cie,m Air 'iean Water 1<;_drgo Preference Flv America AH All AH All >$Hl.OOO if 49 CFR Part 18 applies. All All >$25.000 >$100.000 >$100.000 >$100.000 >$100.000 Foreign air mm.2J-2dJ.TI}Y~L A.ll All All All >$10.000 if 49 CFR Part I 8 applies. All All >$)5.000 >S100.000 >$100.000 >$100 000 >S l oo.ooo Foreign air lL'!D;'!R/t.If!.V<::L 45 73 All AH All All All All All All All >$10 000 if >$!0.000 if >$10.000 if 49 CFR Part 18 49CFRI'art 18 49 CFR Part applies. applies. 18 app.lies. All>$ I 0.000 All All >$10.000 All All All >$25.000 >$25.000 >$25.000 >$t00.000 >$100.000 >$100.000 A> of Feb. 2<)11. As of Feb. 2011 As of feb. 2011. FL\ has nN FTA has not FTA has not a,!opted the FAR adopted t.ht f·";\ R adontrd the FAR 2.101 $!50(l(l(l 2.101 $!50.000 2.101 $150_(100 standard. standard. stand,lrd. >$1 oo .nno >$1 00.00() >$100,000 >$!00.000 Transport bv ocean vessel. Foreign air J.!4!l:>.P-.itr~~:£.L. >$100.000 >$!00.000 >$100.000 >$100.000 Transport bv ocean vessel. Foreign air Jr§IJ.2J2}lrav£.L >$100.000 >$!()() 000 >·S l 00.000 Transport rv ocean vessel. Foreign air tn!D~r.JtmY~L • • • • • • PROVISiON DJvis-Bacon :\c't C('ntract \V1lrk Hours ~1nd Sa1\:tv Standard~ /\.::1 CopeLmd i\nti-Kidd_,ac·k Act ScdiPn I Section 2 Bondim: Seismic Safctv I ·rransit Emplovee Protective Arramwmcnts TYPE OF PROCUREMENT Pmfessional Services/A&£ A&E for new 9JtihJil1K?A .. additions. Open1tiuns/ Management >S! 00.000 ( transport;1t ipn ::i~~f.Y ~.~.~2 .. <:~JJcd), I ran~ it opcratinns. Rolling Stock Purchase >S JOo.ooo Construction >$'.ililfJ (JIS\) ferri~s1 >S l oo.ooo L:Jb\) l~rri~1 Ali > $2,000 (also ferries). $100.000 New 9l!U~l1Dg:'i.~. e1dditions. 1\'laterials & Supplies ~~(-~h_ .. ~_..I_lc_:r~-~~~~-"r_Y~i~~:e~:<_)~P~.~~I<~.~-jc_.ll~}s~~-----+-------------+-----·~A~J~I----~------------+------------+------------~ ~~S=.c=h=o=o=l=B=l=lS=(=)~D=CI=·a=t=i(='n=s~------~-------------+-----=A=IJ~--~~-----------+------------~----------~ ~~l!_r_u_g_l_L_~_-_a __ n_d_!_e_s_ti_n_g----------+-------------+-~c='}=~=~=:=~=::=~=s~.-4------------~------------+------------4 I Alcohol Misuse and Testinrr Transit operations. ·~----1-------l--~---+-----+------1 ~~P=at=c=n=t=R=i~gl=1t=s~--------------~--=R==&=l=)~--+-----------~----------~,-----------+-----------~ ~~1~_i_Q_h_ts_i_n_I_)_a_ta_a_n_9 ____ c_.·~~~-~'\_r~i~~·r_~_~ __ -+----·-~-~_: _ _L_! ____ +------------1-------------r------------+------------1 ~~E=n=c=rL=''~(=\=Jn=~=c=r\=<=tt=i\=Jn=----------+----~·~=l~l-----+------=~=ll~---4----~!\=l=l----~----~'=\=ll~--~-----=A=I~l----~ Recycled Products c~1n t\)iJ.D_<:In~e \\lulli.Sl':Lill.innaL ,·\ rch i lcct urc Noli I! calion uf h:Jcral Participation t()r Staks Limited lu States. EP/\-s(·lectcd items $10.000 <'~1.1110fC annualh·. Ali Limili:d to St:Jtcs . 46 74 Limited tl' States. EI'A-scleekd item,; $10.000 or n1orc annuallv. ITS projects. :l[l_ Limited to States. EPA-~eketcd items S I O.UOU or tnore annwlllv. ITS projects. Limited to States. • • • CHAPTER 9 -DISPOSAL OF SURPLUS PROPERTY 1.0 DEFINITIONS "Surplus personal property" shall mean personal property of the Commission which is no longer needed or fit for its intended purpose or has exceeded its useful life. "Surplus real property" shall mean real property of the Commission which is no longer needed for a specified project. 2.0 DISPOSAL OF SURPLUS REAL PROPERTY A. Upon recommendation by the Executive Director, designated Commission staff may dispose of surplus real property in accordance with the RCTC Right of Way Policies and Procedures Manual, Section 8.5, Disposal of Surplus Properties. 3.0 DISPOSAL OF PERSONAL PROPERTY A. Upon recommendation by the Executive Director and in accordance with applicable state or federal funding requirements, designated Commission staff may dispose of all surplus and obsolete personal property by donation, bid, auction, negotiated sale or exchange. If the disposal of such items is conducted by bid, the sale shall be conducted in accordance with generally accepted best practices and applicable laws and regulations. The Commission staff shall attempt to obtain the best value for the property that can reasonably be obtained . 47 75 • • • CHAPTER 10-OTHER PROCUREMENT MATTERS 1.0 DISPUTES, CLAIMS AND CHANGES-DEFINITIONS A. Change Orders-the commercial and technical resolution of a contract modification. The change order document can be unilateral or bilateral in execution. B. Potential Claim -written notice provided to the Commission by the contractor when the: I. Parties are unable to reach bilateral agreement on a change and the contractor is provided a unilateral change order ("protest"); or, 2. Contractor perceives that it is entitled to additional compensation (time or money) for something it believes to constitute extra work performed or to be performed. C. Claim -differences that have developed during the contract, under protest or under notice of potential claim, which are not resolved at the time the contractor returns the proposed final pay estimate. D. Dispute-a disagreement between the parties as to the merits, amount or remedy arising out of an issue in controversy, including a disagreement regarding a Claim or asserted default. E . Amendment -a modification considered outside the original contract scope or terms and formalized with a written agreement signed by both parties. 2.0 DISPUTES, CLAIMS AND CHANGES -GENERAL A. The Procurement Officer is responsible for documenting negotiation activities for the record, and should be present at all professional services and construction contract negotiations. B. The Procurement Officer or project manager, as required, prepares the appropriate documentation (e.g., Change Order Forms) for review and approval by the Commission's Executive Director or Commission, prior to issuance to the consultant/contractor for signature. This document includes full definition of work scope, impact on DBE goals, definition of time and schedule impacts, and price. The change order language stipulates that the agreed-upon terms are all inclusive, and no other relief will be available regarding this work. 1. for fTA-fimdcd contracts, anv damages recovered must be credited to the project involved unless the fTA permits otherwise. 3.0 TERMINATION A. All Commission contracts exceeding $25,000 should contain provisions enabling the Commission to terminate such contracts for the convenience of the Commission, and all federally funded contracts must contain such provisions. These provisions should specify the manner in which such termination will be effected and the basis for settlement. There should also be included in such 48 76 contracts appropriate provisions specifying causes for which the contracts may be terminated for default. B. Terminations for Convenience of the Commission 1. Commission contracts will be terminated for convenience only when this is determined to be in the best interests of the Commission. In lieu of issuing a notice of termination for convenience, the Procurement Officer will effect a no-cost settlement agreement where possible and appropriate. 2. Formal written notice to the contractor is necessary to terminate a contract for convenience. Such notice will state that the contract is being terminated pursuant to the termination for convenience provision of the contract, the effective date, the extent of termination and instructions to the contractor to cease performance under the contract. 3. The Procurement Officer will negotiate a no-cost settlement with the contractor if possible. Otherwise, the Procurement Officer will negotiate an appropriate settlement agreement with the contractor pursuant to the provisions of the termination for convenience clause of the contract. C. Terminations For Default 1. If a contractor's right to proceed is terminated for default, the Commission may take over and complete the work or cause it to be completed, and the contractor and his sureties, if any, shall be liable to the Commission for any increased costs caused thereby. The contractor and his sureties should, in addition to increased costs in completing the work, be liable for liquidated damages, ifliquidated damages are provided in the contract, or for actual damages, ifliquidated damages are not so provided. 2. If the Procurement Officer determines that the contractor's failure to perform arises from causes which are excusable under the terms of the contract, the Procurement Officer shall not terminate the contractor's right to proceed, nor shall he/she charge the contractor with liquidated damages (or if no liquidated damages, then actual damages) because of any delays occasioned by such causes. 3. Where the surety does not complete performance of the contract, the Procurement Officer normally will complete the performance of work by awarding a new contract based on the same plans and specifications. Such award may be the result of competitive bidding or negotiation; whichever procedure is most appropriate under the circumstances. The Procurement Officer must use reasonable diligence to obtain the lowest price available for completion. 4. If, after due consideration, the Procurement Officer determines that termination is not in the best interest of the Commission although the contractor is in default, the Procurement Officer may permit the contractor to continue the work, and the contractor and his sureties shall be liable to the Commission for liquidated damages, as specified in the contract, or if liquidated damages are not so specified, for any actual damages 49 77 • • • • • • 5. occasioned by the failure of the contractor to complete the work in accordance with the terms of the contract. Anv provision fiJr a liquidated damages assessment must be at a spccit!c rate per dav for each dav of overrun and must be specit!ed in the contr;Kt. a. For FTA-funded contracts. anv dmmH.:es recovered rnust be credited to the pr.QjecUJlY.Q1~5.:cl .!d.Ple~?Jbx_f_I A_permlt~_Q_therwise. 4.0 BONDS, OTHER SECURITIES AND INSURANCE A. The Commission should specify bonding, in compliance with applicable federal and state requirements for all public works contracts. B. 1. 1n generaL all construction contracts over $25.000 require a pavment bond in the amount of ! 00%> of the contract value. ' All FTA-1undcd construction contracts over $100.000 require a performance bond in the amount of 1 00%> of the contract value and a bid guarantee in the anwunt of no less than 5% ofthe contract value. 3. Bids tor construction oftacilitics where the work is anticipated to exceed $25.000 require bid securitv as set fl.)rth in California Public Utilities Code § 130232. The Procurement Officer may require any of the following types of security for any solicitation or contract subject to this Manual, other than a small purchase, regardless ofthe estimated amount ofthe contract: 1 . Bid bonds; 2. Other bid or proposal security; 3. Construction performance and payment bonds; and 4. Performance or payment bonds or other security on non-construction contracts. C. Requirement for Bonds To Be Executed By An Admitted Surety Insurer 1. California Code of Civil Procedure§ 995.311 cails for any bond required on a public works contract to be executed by an admitted surety insurer. 2. The Commission has a duty to verify that an admitted surety insurer executes the bond. The Procurement Officer should print out information from the website of the California Department oflnsurance (http://www .insurance.ca.gov /docs/FS-CompanyProtiles.htm) confirming that the surety is an admitted surety insurer and attach it to the bond. 5.0 CONTRACT CLOSEOUT A. A completed contract is one which is both physically and administratively complete and in which all aspects of contractual performance have been accomplished, terminated, or otherwise disposed of by contract modification. A contract is physically complete only after all articles and services called for under 50 78 the contract, including such related items as reports, spare parts, and exhibits, have been delivered to and accepted by the Commission, including those articles and services for which no specific compensation may have been stipulated. A contract is administratively complete when all payments have been made and administrative actions accomplished. B. The project manager, in cooperation with the Procurement Officer, is responsible for review ohhe contract file and obtaining all necessary documentation to ensure that: (1) all deliverables and/or services (including any reports) required under the contract have been received and accepted; (2) the terms and conditions of the contract have been complied with; (3) disposition of accountable property under the contract has been accomplished; all necessary actions including final payment and releases required to close the contract are completed and documented. C. Small purchase files should be considered closed when the Procurement Officer receives evidence of receipt of property and final payment. D. A contract file should not be closed in any of the following situations: 1. If the contract is the subject of a claim or dispute; 2. If the contract is in litigation or under appeal; or 3. In the case of a termination, if all termination actions have not been completed. 4. If state or federal approval is required and has not been received. 51 79 • • • • • • CHAPTERll-PAYMENT 1.0 COMMISSION PAYMENT PROCESS A. The Commission will promptly process all contract payments with necessary controls to assure compliance with all contract terms and conditions in accordance with internal procedures recommended by the Chief Financial Officer and authorized by the Executive Director. B. The Procurement Officer should clearly specify in solicitations and contracts the form and content of an acceptable invoice, including a requirement that invoices be sequentially numbered, that they contain a date and contract number and the services for which they are invoicing, the period of performance being invoiced, and to whom invoices are to be sent. 2.0 PROGRESS PAYMENTS A. The Commission may provide for progress payments under contracts that require long time periods to complete contract performance or ifthe use of progress payments contributes to the effective and efficient administration of consultant/contractor work. Progress payments will be made on the basis of allowable costs incurred by the consultant/contractor, and the stage of completion of the contract. 1. Criteria-Contract clauses providing for progress payments should be used when the investment in work and progress is expected to be great enough to add substantial costs to the contract or strain the consultant/contractor's cash flow or ability to obtain financing. Under no circumstances should payments exceed the consultant/contractor's physical completion of the Work, nor should they amount to advance payments. Progress payments can be based on a periodic voucher for expenditures, a milestone, or the Commission's estimate of work accomplished as defined in the contract. 2. For Federally funded procurements, the Commission must obtain adequate security (i.e., title to work in progress; letter of credit) for any progress payments made. 3. r:or F'T'A-funded procurements. advance pavments are prohibited unless prior written concurrence is obtained from the FT'A. B. Progress Payments on Public Works In accordance with California Public Contract Code§ 20104.50, the Commission must make progress payments within 30 days after receipt of an undisputed and properly submitted payment request from a contractor on a construction contract. If the Commission fails to make timely payment, the Commission may be required to pay interest to the contractor equivalent to the legal rate set forth in subdivision (s) of Section 685.010 ofthe Code ofCivil Procedure . 52 80 C. Progress Payments and Retentions on Architect, Engineer, and Land Surveyor Contracts Pursuant to California Civil Code §3320, for any contract for public works or improvement, the Commission shall pay to the prime design professional any progress payment within 30 days of receipt of a written demand for payment in accordance with the contract, and the final retention payment, if applicable, within 45 days of receipt of a written demand for payment in accordance with the contract. If any amount is wrongfully withheld or is not timely paid, the prime design professional should be entitled to a penalty of I liz percent for the improperly withheld amount, in lieu of any interest otherwise due, per month for every month that payment is not made. 3.0 PROMPT PAYMENT TO SUBCONTRACTORS-FEDERALLY FUNDED AGREEMENTS A. In accordance with 49 CFR part 26, Commission contracts above the small purchase threshold must require that the prime contractor or subcontractor shall pay to any subcontractor, not later than 7 days of receipt of each progress payment from the Commission, unless otherwise agreed to in writing, the respective amounts paid to the contractor on account for the work performed by the subcontractors, to the extent of each subcontractor's interest therein. The Commission contract may provide that, in the event that there is a good faith dispute over all or any portion of the amount due on a progress payment from the prime contractor or subcontractor to a subcontractor, then the prime contractor or subcontractor may withhold no more than 150 percent of the disputed amount. B. The Commission must also require the prompt return ofretainage payments from the prime contractor to the subcontractor within 7 days after the subcontractor's work is satisfactorily completed. 4.0 PAYMENT OF RETENTION ON PUBLIC WORKS CONTRACTS Pursuant to California Public Contract Code§ 7107, within 60 days after the date of completion of the work of improvement, the Commission must release any retention withheld except funds withheld to satisfy outstanding stop notices or otherwise properly withheld. In the event of a dispute between the Commission and the original contractor, the Commission may withhold from the final payment an amount not to exceed 150 percent of the disputed amount. 5.0 REQUEST FOR PAYMENT CERTIFICATION A. B. All contracts above the small purchase threshold may contain a clause, which requires the contractor to submit with each request for payment, a certification that the claim for payment is true, correct, and for services rendered and/or supplies delivered in accordance with the contract. The user department/project manager will disapprove and Accounts Payable will return unpaid any request for payment which does not contain the certification when required. 53 81 • • • • REVISION HISTORY: Revision No. Revisions Adopted 0 Adopted by the Commission 7111/12 I l Adopted try the Commission TBD (12/12/12) • • 54 82 • • • RESOLUTION NO. 12-031 RESOLUTION OF THE RIVERSIDE COUNTY TRANSPORTATION COMMISSION REGARDING THE REVISED PROCUREMENT POLICY MANUAL WHEREAS, the Commission previously adopted Resolution No. 12-018, "Resolution of the Riverside County Transportation Commission Regarding the Revised Procurement Policy Manual"; and WHEREAS, the Commission received corrective action recommendations from the Federal Transit Administration as a result of a procurement systems review completed in October 2012; and WHEREAS, the Commission wishes to update its procurement policies and procedures to continue to be a comprehensive, useful framework for the Commission's procurements. NOW, THEREFORE, the Riverside County Transportation Commission does hereby resolve as follows: Section 1 . The Procurement Policies Manual previously adopted on July 11, 2012 is hereby replaced in its entirety by the revised Procurement Policies Manual, set forth in Attachment A, attached hereto and incorporated herein. Section 3. The Riverside County Transportation Commission hereby approves and adopts the Procurement Policies Manual, as revised, to be effective immediately. APPROVED AND ADOPTED this 121h day of December, 2012. ATTEST: Jennifer Harmon Clerk of the Board John J. Benoit, Chair Riverside County Transportation Commission 83 • • • RIVERSIDE COUNTY TRANSPORTATION COMMISSION DATE: December 12, 2012 TO: Riverside County Transportation Commission FROM: Budget and Implementation Committee Michele Cisneros, Accounting and Human Resources Manager THROUGH: Anne Mayer, Executive Director SUBJECT: Quarterly Financial Statements BUDGET AND IMPLEMENTATION COMMITTEE AND STAFF RECOMMENDATION: This item is for the Commission to receive and file the Quarterly Financial Statements for the period ending September 30, 2012. BACKGROUND INFORMATION: During the first three months of the fiscal year, staff monitored the revenues and expenditures of the Commission. The first quarter of the year is primarily directed toward completing fiscal year end closing activities. Staff expects most of the categories to present a more realistic outlook beginning in the second quarter. The operating statement shows the sales tax revenues for the first quarter at 7 percent of the budget. This is a result of Governmental Accounting Standards Board (GASB) Statement No. 33. GASB 33 requires sales tax revenue to be accrued for the period in which it is collected at the point of sale. The State Board of Equalization collects the Measure A funds and local Transportation Fund (L TF) funds and remits them to the Commission after the reporting period for the businesses. This creates a two-month lag in the receipt of revenues by the Commission. Accordingly, these financial statements reflect the revenues related to collections for July 2011. 0 n a cash basis, the Measure A and L TF sales tax revenues are 5. 7 5 percent and 4.69 percent higher, respectively than the same period last fiscal year. Staff will continue to monitor the trends in the sales tax receipts and report to the Commission any necessary adjustments to the FY 2012/13 budget for sales tax revenues . Agenda Item 7E 84 Federal, state, and local revenues are on a reimbursement basis. The Commission will receive these revenues as eligible project costs are incurred and invoiced to the respective agencies. Invoices related to first quarter expenditures will be prepared and submitted in the second quarter. During the FY 2012/13 budget process, the Commission took a conservative approach in estimating the Transportation Uniform Mitigation Fee (TUMF) revenues of $4 million passed through from the Western Riverside Council of Governments (WRCOG) as a result of the housing sector. The budgeted balance of $1,257,000 relates to TUMF Zone reimbursements from WRCOG for the 74/215 interchange project. Staff will invoice WRCOG for TUMF zone reimbursements as eligible expenditures are incurred in the second quarter. The Commission took a conservative approach in estimating interest income for FY 2012/13 as a result of flat interest yields on invested balances. A significant portion of interest income related to the first quarter was recorded in the second quarter. The expenditure categories are in line overall with the expectations of the budget with the following exceptions: • • Salaries and benefits are slightly over as a result of a prepayment for the FY 2012/13 employer retirement contribution, which provides a discount of half a year's interest; and Regional arterials reports a negative actual amount as a result of the accounting reversal for estimated expenditure accruals for regional arterial act1v1t1es as of June 30, 2012, but not yet invoiced through September 30, 2012. Debt service interest expenditures on the 2010 Bonds are made in December and June, while interest expenditures on the 2009 Bonds are made monthly due to the variable rate nature of the bonds. Principal payments on the 2009 Bonds and 2010 Bonds are made in June. Debt proceeds consist of commercial paper and bond issuances. The Commission issued $20 million in commercial paper notes during the first quarter. A significant portion of the debt proceeds are expected to occur in the fourth quarter in connection with the State Route 91 Corridor Improvement Project financing. · Staff will continue to monitor the revenues and expenditures and will notify the Commission of any unusual events. Attachment: Quarterly Financial Statements -September 2012 Agenda Item 7E 85 • • • RIVERSIDE COUNTY TRANPORTATION COMMISSION QUARTERLY BUDGET VS ACTUAL 1ST QUARTER • FOR THREE MONTHS ENDED 9/30/2012 FY 2012/13 1ST QUARTER REMAINING PERCENT BUDGET ACTUAL BALANCE UTILIZATION Revenues Sales tax $ 211,212,500 $ 14,314,100 $ (196,898,400) 7% Federal reimbursements 73,151,900 (73,151,900) N/A State reimbursements 17,917,800 247,896 (17,669,904) 1% Local reimbursements 2,688,700 28,014 (2,660,686) 1% Transportation Uniform Mitigation Fee 5,257,300 (5,257,300) N/A Other revenues 882,800 122,159 (760,641) 14% Interest 7,265,900 462,786 (6,803, 114) 6% Total revenues 318,376,900 15,174,955 (303,201 ,945) 5% Expenditures Salaries and benefits 6,971,100 2,061,271 4,909,829 30% Professional and support Professional services 14,474,800 828,123 13,646,677 6% Support costs 5,323,240 1,203 531 4,119,709 23% Total Professional and support costs 19,798,040 2,031,654 17,766,386 10% Projects and operations Program operations -general 16,576,500 927,792 15,648,708 6% Engineering 27,912,060 1,308,562 26,603,498 5% Construction 125,464,800 3,284,582 122,180,218 3% Design Build 29,050,000 2,668,100 26,381,900 9% Right of way/land 110,312,095 3,854,774 106,457,321 3% Operating and capital disbursements 97,710,490 21,603,245 76,107,245 22% Special studies 800,000 5,844 794,156 1% Local streets and roads 39,357,000 2,648,435 36,708,565 7% • Regional arterials 20,400,400 (548,454~ 20,948 854 -3% Total projects and operations 467,583,345 35,752,880 431,830,465 8% Debt service Principal 126,800,000 126,800,000 N/A Interest 16,613,000 1,471,669 15,141,331 9% Total debt service 143,413,000 1,471,669 141,941,331 1% Capital outlay 447,700 5,452 442,248 1% Total Expenditures 638 213 185 41 322 926 596 890 259 !)bJo Excess revenues over (under) expenditures (319,836,285) (26,147,971) 623,493,757 8% Other financing sources/(uses) Operating transfer in 327,567,190 8,000,148 (319,567,042) 2% Operating transfer out (327,567,190) (8,000,148) 319,567,042 2% Debt proceeds 1 220 172 000 20 000 000 !1 ,200, 172,000} 2% Total financing sources/(uses) 1,220,172,000 20,000,000 1 ,200,172,000 2% Net change in fund balances 900,335,715 (6,147 ,971) 1 ,823,665, 757 -1% Fund balance July 1, 2012 556,693,300 575,578,619 18,885,319 103% Fund balance September 30, 2012 $ 1,457,029,015 $ 569,430,648 $ 1,842,551,076 39% • 86 • FSP/ GENERAL FUND SAFE Revenues Sales tax $ 270,000 $ State reimbursements Local reimbursement& 594 Other revenues 4,100 298 Interest Total revenues 274,694 298 Expenditures Salaries and benefits 1,425.997 23,028 Professional and support Professional services {152,074) {38,884) Support costs 1,016 497 43,837 Total Professional and support costs 864.423 4,953 Projects and operations Program operations -general 216,995 365,987 Engineering 9,354 Construction Design Build Right of way/land Operating and capital disbursements 5,014,487 Special studies Local streets and roads Regional arterials Total projects and operations 5,240,836 365,987 Debt service Interest Total debt serv1ce Capital outlay 4.793 Total Expenditures 7,536,049 393,968 Excess revenues over (under) expenditures (7,261.355) {393,670) Other financing sourcesl(uses) Operating transfer in 5.799.814 Operating transfer out Debt proceeds Total financing sources/(uses) 5,799,814 Net change in fund balances {1,461.541) {393,670) Fund balance July 1, 2012 13,685,227 7 255,419 Fund balance September 30, 2012 $ 12,223,686 $ 6,861,749 • RIVERSIDE COUNTY TRANSPORTATION COMMISSION QUARTERLY BUDGET VS ACTUALS BY FUND 1ST QUARTER FOR THREE MONTHS ENDED 9130f2012 MEASURE A SALES TAX WESTERN PALO COACHELLA LOCAL STATE TRANSIT VERDE TRANSPORTATION COUNTY VALLEY VALLEY FUND ASSISTANCE $ 6,550,651 $ 61,510 $ 2,101,839 $ 4,414,300 $ 247,896 27,420 117,761 6,943,728 61,510 2,101,839 4,414,300 589,304 671 969,075 143,139 1.112,214 325,416 1,018,084 2,099,058 2.668,100 4.080,285 988,674 1,125,000 14.428,134 46,950 5,844 1,851,281 61,510 735,644 548,454 13.036,742 61,510 1.312,190 14,428,134 46,950 659 14,738,919 61,510 1,312,861 14,428 134 46 950 (7,795,191) 788,978 {10,013,834) {46,950) 1,576,060 {664,104) (5,799,814) 911,956 (5,799,814) {6,883,235) 788,978 {15,813,648) {46,950) 240,237,824 556 17,346,594 92,088,969 43,854,533 $ 233,354,589 $ 556 $ _18,135,572 $ 76,275,321 $ 43,807,583 87 • TRANSPORTATION COMMERCIAL SALES TAX COMBINED UNIFORM MITIGATION DEBT SERVICE FEE (TUMF) PAPER BONDS TOTAL $ 915,800 $ $ $ $ 14,314,100 247,896 28,014 122,159 457 289 5 316 181 462,786 915,800 457,289 5,316 181 15,174,955 22,271 2,061,271 50,006 828,123 58 1,203,531 50,064 2.031,654 19,394 927,792 281,124 1,308,562 1,185,524 3,284,582 2.668,100 {999,214) 578,080 195,623 3.854,774 21,603,245 5,844 2.648,435 548,454) {698,696) 578,080 1.381,147 35.752.880 1,471,669 1,471,669 1,471,669 1,471,669 5,452 (626,361) 578,080 1,381,147 1,471,669 41,322,926 1,542,161 {120,791) {1,375,831) {1,471.488) {26,147,971) 624.274 8,000,148 {186,514) (1,349,716) {8,000,148) 20,000,000 20,000,000 19,813,486 (1,349,716) 624,274 20,000,000 1,542,161 19,692,695 {2.725,547) {847.214) {6,147,971) 73,224,071 31,143,594 5,651,884 51,089,948 575,578,619 $ 74,766,232 $ 50,836,289 $ 2,926,337 $ 50,242,734 $ 569,430,648 • • • RIVERSIDE COUNTY TRANSPORTATION COMMISSION DATE: December 12, 2012 TO: Riverside County Transportation Commission FROM: Budget and Implementation Committee Theresia Trevino, Chief Financial Officer THROUGH: Anne Mayer, Executive Director SUBJECT: Quarterly Sales Tax Analysis BUDGET AND IMPLEMENTATION COMMITTEE AND STAFF RECOMMENDATION: This item is for the Commission to receive and file the sales tax analysis for Quarter 2 (Q2) 2012. 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 tax revenues. Since the commencement of these services, MuniServices 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 240 businesses. Through Q2 2012 for April through June 2012 (Q2 2012), the SBOE approved corrections for 168 of these accounts for a total sales tax revenue recovery of $2,391,886. 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 provided the Commission with the quarterly sales tax summary report for the second quarter of calendar year 2012 for Q2 2012. Most of the Q2 2012 Measure A sales tax revenues were received by the Commission in the third quarter of calendar 2012, during July through September 2012, due to a lag in the sales tax calendar. The summary section of the Q2 201 2 report is attached and includes an overview of California sales tax receipts, local results, historical cash collections analysis, summary of the top 25 sales tax contributors, Agenda Item 7F 88 historical sales tax amounts, sales tax by business category, economic trends for significant business category (business to business), and results. The following observations were noted in the 02 2012 report: • Sales tax receipts for Riverside County were 9.5 percent higher compared to the 02 2011, and higher compared to the state's rate of 6.8 percent. This supports the previous quarterly reports' analyses that an economic recovery statewide and locally is occurring; however, the Commission should continue to be cautious as service stations is one of the top three economic segments throughout the state leading this recovery. A significant portion of this growth in this segment is attributable to the high fuel prices. • Taxable transactions for the top 25 tax contributors in Riverside County, which generated 23 percent of the taxable sales for the year ended 02 2012, were slightly higher than the year ended 02 2011. The top 100 tax contributors generated 37 percent of the taxable sales in 02 2012 and 02 2011. • Five of the six economic categories experienced increases in the 02 2012 benchmark year comparison to 02 2011. Transportation had the largest increase at 13.0 percent, which was primarily related to increases in the auto sales-new, auto parts/repair, and auto-sales-used segments. The other top five economic categories had increases ranging from 5.1 percent to 10.8 percent. General Retail: Apparel Stores, Department Stores, Furniture/Appliances, Drug Stores, Recreation Products, Florist/Nursery, and Misc. Retail Food Products: Restaurants, Food Markets, Liquor Stores, and Food Processing Equipment Construction: Building Materials Retail and Building Materials Wholesale Transportation: Auto Parts/Repair, Auto Sales· New, Auto Sales-Used, Service Stations, and Misc. Vehicle Sales Business to Business: Office Equip., Electronic Equip., Business Services, Energy Sales, Chemical Products, Heavy Industry, Light Industry, and Leasing Miscellaneous: Health & Government, Miscellaneous Other, and Closed Account Adjustments Agenda Item 7F 89 • • • • • • • • Nine of the top ten segments (service stations, department stores, restaurants, auto sales-new, miscellaneous retail, apparel stores, food markets, light industry, and building material-retail) sales taxes reached a new high point during 02 2012. These nine segments represent 71 percent of the total sales tax receipts. Service stations, department stores, and restaurants continue to represent the three largest economic segments for Riverside County, or 34 percent of total sales taxes, which is comparable to the 01 201 2 benchmark year. Auto sales -new represents the fourth largest economic segment at 9. 7 percent of total sales taxes, which is also comparable to the 01 2012 benchmark year . During the review of the 02 2012 detailed report with MuniServices, information regarding sales tax comparisons by city and change by economic category from 02 2011 to 02 2012 was provided, and is attached. Newly incorporated cities such as Eastvale and Jurupa Valley will be listed when sufficient comparative information is available. Staff continues to monitor monthly sales tax receipts and other available economic data to determine the need for any adjustment to the revenue projections. Staff will utilize the forecast scenarios included with the complete report and recent trends in assessing such projections. Attachments: 1) Sales Tax Analysis 02 2012 2) Sales Tax Comparison by City for 02 2011 to 02 2012 Agenda Item 7F 90 • • • ATTACHMENT 1 FIN-RPT-00007 Riverside County Transportation Commission Sales Tax Digest Summary Collections through September 2012 Sales through June 2012 (2012Q2) CALIFORNIA'S ECONOMIC OUTLOOK California sales tax receipts increased by 6.8% over the same quarter from the previous year, with Northern California reporting a 7.1% increase compared to 6.6% for Southern California. Receipts for the Riverside County Transportation Commission changed by 9.5% over the same periods. A statewide look at economic performance continues to indicate upward movement. Construction and Business to Business showed increases in employment of 5% over the prior year. Transportation shows continued growth. Sales of new vehicles are up 27.4% over the prior year, fueled by 'baby boomers' purchasing cars as they enter retirement. Gasoline prices also continue to climb. The residential real estate market shows signs of beginning to come back. The number of single family homes sold was up 8.5% from last year. The median price rose 8.1%. While improvements show positive signs, California is still years away from a complete recovery. Overall statewide job growth was only 2% and there remains a troubling gap between the number of jobs being created and the number of people entering and remaining in the workforce. LOCAL RESULTS 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 2Q2012 Receipts Net 2Q2011 Receipts Actual Percentage Change Business Activity Performance Analysis Local Collections Less: Payments for Prior Periods Preliminary 2Q2012 Collections Projected 2Q2012 Late Payments Projected 2Q2012 Final Results Actual 2Q2011 Results Projected Percentage Change www.MuniServices.com rsog1soo-B1B1 $36,025,925 0 0 36,025,925 .00 (347,710) 35,678,215 32,584,252 9.5% $36,025,925 (2,197,841) 33,828,085 1,120,430 34,948,515 32,212,068 8.5% Pagel Riverside County Transportation Commission HISTORICAl CASH COllECTIONS ANAlYSIS BY QUARTER $40,000 $35,000 $30,000 : S2S,OOO Q. .. " .. $20,000 == ; :z: $10,000 $5,000 so TOP 25 SAlES/USE TAX CONTRIB ~ -:' < • -;;~/..) The following list id~r!tifies R s: ~~;~5 Sales/a~~·ta;ccf.>rii~but~s: rtie list 1s··in alphabetical order and represents sales from July 2~3iti to June 201.£ The Top 25 Saies/Use. Tax .contributors generate 22.5% of RCTC's total sales and usetax revenue. BEST BUY STORES ··. MACY'S:tn:PAATMENT STORE .~.;;...~x •• •y.c, _.~,_,p:~""'"''0-""-''"'-""""' ~·-'"'"'""'~;$.-«~~~~<,. , ' ~""--¥~'<'x.~~-~~~k>.-;''·-"-$.&~-,«'"~'"" '''"'"*"'•·cbw•w•·•'""'~'''o"''*•·0"••N'·· CARMAX THE AUTO SUP'ERsTORE ' R'AiiPH'SGROCERY CHEVRON SERVICE STATIONS Rllt AI£> DRUG STORES· CIRCLE K FOOD STORES ROSSSTORES COSTCO WHOLESALE SAM'S (tUB DEPT OF MOTOR VEHICLES SHELL SERVICE STATIONS DESERT SUNLIGHT STATER BR6SMARKETS EDISON MATERIAL SUPPLY TARGETSTORE$ GE PACKAGED POwER VERIZONWIRELESS HOME DEPOT VONS SERVICE STATIONS K MART STORES WAL MART STOR~ ···· . KOHL'S DEPARTMENT STORES WALGI;\EEN'SO'~'u(iSTORES LOWE'S HOME IMPROVEMENT www.MuniSe/'Vi<:es.com . • • • • • • Riverside County Transportation Commission HISTORICAL SALES TAX AMOUNTS The following chart shows the sales tax level from sales through June 2012, the highs, and the lows for each segment over the last two years. $18,000 $16,000 $14,000 $12,000 $10,000 $8,000 $6,000 $4,000 $2,000 $0 (in thousands of$) ANNUAl SALES TAX BY BUSINESS CATEGORY lQlOH !Q20!2 4 Q 2 t) 11 3 Q 2 011 ZQlOl1 l Q 1011 4Q2010 3Q2010 2Ql010 1 Q 2 010 $0 $1 o,ooo www.MuniServices.com $40,0011 s 6 0 ,0 u 0 s 80,000 (800) 800~8181 93 fiii2Q201Z ' : •lltgh ~ow ..... ~-~' 51011,0&0 $llO,fl0cO $1411,000 $160,000 Page3 Riverside County Transportation Commission FIVE-YEAR ECONOMIC TREND: Business To Business I $7,000 $6,00 0 $5,00 0 $4 ,00 0 $3,00 0 $2,00 0 Sl,OOO so FINAL RESULTS: January-March 2012 Sales Local Net Cash Collections less: Pool Amounts less: Prior Quarter Payments Add: late Payments (in tbousands orS) local Net Economic Collections after Adjustments Percent Change from January-March 2011 Sales MUNISERVICES' ON-GOING AUDIT RESULTS This Quarter $201,516 Total to Date $1,761,818 www.MuniServices.com {800) 800-8181 94 $33,087,093 ($-299,350) ($1,504,195) $1,708,775 $33,591,023 UP BY7.6% • • • Page4 ATTACHMENT 2 95 MuniServices, LLC • • • RIVERSIDE COUNTY TRANSPORTATION COMMISSION DATE: December 12, 2012 TO: Riverside County Transportation Commission Budget and Implementation Committee FROM: Anne Hallberg, Accounting Supervisor Theresia Trevino, Chief Financial Officer THROUGH: Anne Mayer, Executive Director SUBJECT: Quarterly Investment Report BUDGET AND IMPLEMENTATION COMMITTEE AND STAFF RECOMMENDATION: This item is for the Commission to receive and file the Quarterly Investment Report for the quarter ended September 30, 2012. BACKGROUND INFORMATION: Attached are the quarterly investment and cash flow reports as required by state law and Commission policy. The county of Riverside's Investment Report for the month ended September 30, 2012, is also attached for review. Attachments: 1) Quarterly Investment Report for the quarter ended September 30, 2012 2) County of Riverside Investment Report for the month ended September 30, 201 2 Agenda Item 7G 96 • • • Statement of Compliance Nature of Investments -------Bond Projects Operating Funds 80.30% 4.04% Debt Reserve .94% Portfolio Maturity 0 to 90 Days 100% Portfolio Investment Type LA IF ;;:-----Mutual Funds 4.97% All of the above investments and any investment decisions made for the quarter ended September 30, 2012 were in full compliance with the Commission's investment policy as adopted on June 7, 2012. The Commission has adequate cash flows for six months of operations. Signed by:~~ ChiefFinancial Officer 97 • Riverside County Transportation Commission Investment Portfolio Report Penod Ended. September 30,2012 OPERATING FUNDS City National Bank Depos1ts County Treasurer's Pooled Investment Fund Local Agency Investment Fund (lAIF) AgencyfTreasury Securities: Subtotal Operating Funds FUNDS HELD IN TRUST County Treasurer's Pooled Investment Fund Local Transportation Fund Subtotal Funds Held In Trust COMMISSION BONO PROJECT FUNDS/DEBT RESERVE US Bank Money Markel Investment Agreements County of R1verside Pool investment F1r5t American Government Obligation Fund Subtotal Bond Project Funds/Debt Reserve TOTAL All Cash and Investments Investment Transactions for the Quarter Ended September 30, 2012 Purchases: None Maturities: None RATING FAIR VALUE MOODYS/FITCH S&P 3,980,432 A31BB8+ 407,894,199 Aaa1MR1/AAAIV1 3,609,649 Not Rated 415,484,280 76,165,961 Aaa-MR1/AAAIV1 76,185,961 22 AaaiAAAm 1,763 Aaa/MR1/AAAIV1 25,727,533 Aaa/AAAm 25,729,318 s 517,399,559 ParValueatMatunty Matunty Date COUPON PAR RATE VALUE NIA NIA NIA NIA NIA NIA NIA NIA NIA Coupon Rate • PURCHASE DATE MATURITY DATE NIA NIA N/A NIA YIELD TO MATURITY NIA 042% NIA 042% 0.42% NIA PURCHASE COST SUMMARIZED INVESTMENT TYPE Banks County Pool County Pool Investment LAIF Mutual Funds CNI Charter US Bank Money Markel First Amer1can Government Obl1gation Fund Sub-Total Mutual Funds Federal Agency securities Certificates of Deposit U.S. Treasury secunt1es Corporate Note/Commercial Paper Investment Agreements 98 TOTAL MARKET VALUE 22 25,727,533 UNREALIZED GAIN (LOSS) 3,980,432 484,080,159 1,763 3,609,649 25,727,555 517,399,559 • 2012 County of Riverside Septenzber Treasurer's Pooled Investlnent Fuud "QE3 to Infinity and Beyond" For the better part of this year, the capital markets have been expecting quantitative easing, part three (QE3) from the FED, from one meeting to the next, depending on the most cur- rent economic indicators. As we moved into August, our stock markets were rallying strongly on the hope of further balance sheet expansion programs based on their comments. At its regularly scheduled meeting on August }>t the FED stated, "Economic activity decelerated somewhat over the first half of this year. Despite some further signs of improve- ment, the housing sector remains depressed." The biggest surprise was the statement "The Committee will closely monitor incoming infor- mation on economic and financial developments and will provide additional accommodation as needed". This was the wind up before the pitch. Some thought Bernanke & Co. would wait a bit longer reasoning that they should keep the powder dry and for the dust to clear from the upcoming and contentious presidential election. • Clearly, the FED felt differently and on Septem- ber 13•h at its regularly scheduled meeting launched QE3, a $40 billion a month open-ended mortgage backed securities (MBS) bond buying program "to infinity and beyond." The FED stated, "The Conmlittee is concerned that, without further policy acconmlO- dation, economic growth might not be strong enough to generate sustained improvement in labor market conditions." In other words, until employment begins to show signs of recovery. Furthermore, "To support continued progress toward maximum employment and price stabil- ity, the Comnlittee expects that a highly accom- modative stance of monetary policy will remain appropriate for a considerable time after the economic recovery strengthens." They've sug- gested through 2015. The FEDs' statement also suggests that with the QE3 launch, they have clearly shift- ed away from concern about inflation to a no- holds barred slugfest on maxinlizing employ- ment. However, many capital markets observers wonder, will buying MBS bonds promote real employment and economic growth? Moreover, will this program continue to support the emerg- ing housing recovery that we so desperately need, or was this politics at its finest a couple of months before a very important election? Only time will tell as the concern is that markets are too reliant and accustomed to FOMC interven- tion . Next up, cooler temperatures as we welcome the fall season that is upon us, the elec- tions, and, the looming debate of the fiscal cliff prior to year-end. Stay tuned to your business news; you can be assured that we will in manag- ing the assets of the Pool on behalf of our deposi- tors. Don Kent Treasurer-Tax Collector Capital Markets Team Treasurer-Tax Collector Don Kent Asst. Treasurer-Tax Collector Jon Christensen Investment Manager Giovane Pizano Asst. Investment Manager Angela Tressler Investment Objectives The primary objective of the treasurer shall be to safe- guard tile priucipal of the funds under the treasurer's control, meet the li- qltiditfl neeifs of th"e depositor, .. and achieve a return on the funds under his or her control. RIVERSIDE COUNTY TREASURER'S POOLED INVESTMENT FUND IS CURRENTLY RATED: Aaa-bf HY MOODY'S INVESTOR'S SERVICE AND AAA/V1 BY HTCH RATINGS 5,926,56'8,258.87 5,920,236,964.13 6,331,294.74 0.11 0.44 1.10 The Treasurer's Pooled Investment Fund is comprised of the County, Schools, Special Districts, and other Discretionary Depositors. 99 Current Market Date Economic Indicators 10/5/2012 9/27/2012 9/27/2012 Stock Indices Nonfarm Payrolls- MfMchange Unemployment Rate M/M change·· Real Gross Domestic Product -QJQ change parHime or full-time in the nation's ~l1siness •. umi!PrnmPnt establishments. Measures the number of unemployed as a percentage of the labor force. -Reflects the new orders placed manufaCturers for immediate and futrireideliv•erv . of factor;; ha;d goods. •-" · .. · ........... . economy. GDP is the country's most Value Chan e JI.£W Jqpes{DJIA) S&P 500 Index NASDAQ Commodities Nym~xCrude Gold (USD/OZ) 13f4~7;·t3;~>?! 1,440.67 :2,799.19 Value Chan e $ 92.19 :~~~(6M:~8) $ 1,772.10 $ 80.09 RIVERSIDE COUNTY TREASURER-TAX COLLECTOR 100 0.23 ··o.3fi:cc ~ ~-;-'-,/ ;;,_;.,,;;."" • 7.8% 2 • TIMMI Fidelity Prime Institutional MMF Federated Prime Obligations Fund Wells Farg9 Advantil~e J-Ierftage Morgan Stanley Institutional Prime Liquidity Fund BlackRbck Priple Cash;~~und,. 1.00% 0.80% 0.60% 0.40% 0.20% FIPXX POIXX WFJXX MPFXX :BPIXX 0.16% 0.15% 0.15% 0.16% 0.21% The Treasurer's Institutional Money Market Index (fiMMI) is compiled and reported by the Riverside County Treasurer's Capital Markets division. It is a composite index derived from five AAA rated prime institutional money market funds. Similar to the Treasurer's Office, prime money market funds invest in a diversified portfolio of U.S. dollar denominated money market instruments including U.S. Treasuries, government agencies, commercial paper, certificates of deposits, repurchase agreements, etc. TIMMI is currently comprised of the five multi billion dollar funds listed to the left. -Pool Yield .. ,."·TIMMI 0.00% ;-----------r----------,-----------r----------~----------r---------~----- Sep-11 Nov-11 Jan-12 Mar-12 May-12 Jul-12 Sep-12 ·~------------------~ • Cash Flows Required Actual Available to Monthly Monthly Matured Investments Invest> 1 Month Receipts Disbursements Difference Investments Balance Maturing Year 10/2012 10/2012 697.00 812:58 11/2012 775.00 706.19 12/2012 1,459.00 809.82 01/2013 695.00 1,259.52 02/2013 638.00•······· 900.45 03/2013 841.00 851.75 04/2013 1,379.60 821;92 05/2013 663.29 1,199.59 06/2013 589.54. u-1;1;4.19. 07/2013 868.06 913.40 08/2013 ·· ~TZJ7:29 09/2013 675.66 752.21 (115.58) 68.81 649.18 (564.52) (262.45) (10.75) 557.68 (536.30) (524.65) (45.34) . {4K67) (76.55) 501.11 45.34 48.67 76.55 237.47 121.89 190.70 839.8'8 275.36 12.91' 2.16 559.84 23.54 733.80 164.12 90.00 433.11 274.40 125.00 108.30 477.99 364.63 175.09 127.50 220.00 TOTALS 9,949.77 10,858.91 (909.14) 671.67 3,293.93 4,341.90 13.40% 65.70% 86.60% * All values reporkd in millions (S). The Pooled Investment Fund cash flow requirements are based upon a 12 month historical cash flow modeL Based upon projected cash receipts and maturing investments, there are sufficient funds to meet future cash flow disburse- ments over the next 12 months. RIVERSIDE COUNTY TREASURER-TAX COLLECTOR 3 101 Asset Allocation 180,000.00 180,000.00 MMKT 10,000.00 10,000.00 CAL TRUST FND 54,000.00 54,000.00 LOCAL AGCY INVST 50,000.00 50,000.00 DDAfPASSBK 170,000.00 170,000.00 LOCALAGCY 535.00 535.00 US TREAS BILLS 50,000.00 49,915.47 US TREAS BONDS 255,000.00 255,415.62 FHLMC DISC NOTES 125,000.00 124,819.35 FHLMCBONDS 653,871.00 653,703.34 FNMA DISC NOTES 150,000.00 149,787.15 FNMABONDS 804,420.00 804,860.41 DISC NOTES 302,000.00 301,478.18 1,480,140.00 1,480,423.46 285,000.00" 284,534.61 196,000.00 196,099.16 52,500.00 52,491.38 45,515.00 45,635.78 COMMPAPER 1,500,000.00 :iii' 1,000,000.00 ·0 0 e soo,ooo.oo 0.00 I n II II [I Scheduled Book -Market RIVERSIDE COUNTY TREASURER-TAX COLLECTOR 180,000.00 10,000.00 100.00% 0.03% .003 54,000.00 100.00% 0.41% .003 50,000.00 100.00% 0.36% .003 170,000.00 100.00% 0.08% .003 535.00 100.00% 0.92% 7.712 49,981.78 100.13% 0.19% .356 255,241.35 99.93% 0.21% .840 124,928.25 100.09% 0.18% .473 655,626.74 100.29% 0.63% 1.390 149,937.50 100.10% 0.15% .374 ~- 806,837.88 100.25% 0.80% .862 301,785.34 100.10% 0.18% .526 1,481,860.62 100.10% 0.34% .657 284,903.45 100.13% 0.19% .401 .. 196,479.72 100.19% o:51% .948 52,586.90 100.18% 0.61% .987 45,635.78 100.00% 0.47% I II ~~ ~ SCHEDULED PAR% 102 -REPOS-4% -MMKT-0% -CAlTRUST FNO • 1% .,.. lOCAl AGCY INVST FNO • l"'o a. OOA/PASSBK-~ -lOCAL AGCY OBUG -00/o <=> US TllEAS SillS· lo/o ""' US TREAS BONOS-5% <= fHtMC OISC NOTES· 2% -Fl!lMC BONOS-13% -FNMA DISC NOTES-~ -FNMA BONDS-16% -FHlB DISC NOTES-6% """' Fl!lB BONOS-300/o -FFCB DISC NOTES -6% c:> FfC8 BONOS-4% -FARMERMAC-1% -MUNI BONOS-1% -COMM PAPER-3% • . 003 .003 .003 .003 .003 7.712 .356 .840 .473 2.033 .374 2.681 .526 .798 .401· 1.145i "~'~'"'"'. ''; 1.321 .813 • • 4 Maturity Distribution REP OS 180,000.00 MMKT 10,000.00 CAL TRUST FND 54,000.00 LOCAL AGCY INVST 50,000.00 FND DDA/PASSBK 170,000.00 LOCAL AGCY OBLIG US TREAS BILLS 50,000.00 US TREAS BONDS 130,000.00 FHLMC DISC NOTES 25,000.00 100,000.00 FHLMCBONDS 24,121.00 15,000.00 FNMA DISC NOTES 50,000.00 100,000.00 FNMABONDS 55,000.00 85,000.00 DISC NOTES 37,000.00 50,000.00 215,000.00 FHLBBONDS 37,800.00 65,000.00 1,122,590.00 FFCB DISC NOTES 285,000.00 FFCBBONDS 30,000.00 80,000.00 FARMER MAC 37,500.00 • MUNIBONDS 35,920.00 COMMPAPER YEAR IN MATURITY • RIVERSIDE COUNTY TREASURER-TAX COLLECTOR 103 125,000.00 248,000.00 90,000.00 : 162,000.00 51,000.00 7,595.00 10,000.00 54,000.00 50,000.00 170,000.00 535.00 535.00 50,000.00 255,000.00 125,000.00 356,750.00 10,000.00 653,871.00 --~- 150,000.00 >••~v ' 314,740.00 259,680.00 804,420.00 302,000.00 72,750.00 20,000.00 25,000.00 10,000.00 196,000.00 10,000.00 5,000.00 52,500.00 2,000.00 -REPOS ·Scheduled l'llr -MMKT ·Scheduled Par -CAl. TRUST FNO • S!:hedu!ed Pat LOCAl AGC'f INVST FNO • S!:hedu!ed Par _, OOA/PASSBI< • Schedull>d Par LOCAl. AGC'f OBUG • Scheduled Par -US TREAS BillS· Scheduled Par -US TREAS IIONOS • Scheduf<d Par -flit.MC DISC NOTES· Scheduled Par -FHLMC OONDS ·Scheduled Par -"' fi'IMA DISC NOTES· Scheduled P#r _,.,.,.. FNMA BONOS· Schedull>d Par fl!UI D!SC NOTES • Schedul~>d Par -FHl.B BONOS· Schl>duled P<tr -FfCB DISC NOTES-Schl>duled Par -ffCB BONOS· S!:heduled Par -FARMER MAC-Scheduled Par -MUNI BONOS· Scheduled Par -COMM PAPER· Scheduled Par 5 Credit Quality Aaa A a Aal Aa2 4,370,591.00 10,000.00 7,140.00 15,915.00 No" o < '" ~~. o 162,300.00 MOODY'S BOOK% -Aaa·87% -Aill-0% •. Aa3-3oAI -!\il-0% ll!liiliAa2-0% -NR-9% 3,966,110.00 23,930.00 4,370,197.40 9,999.35 7,140.00 16,038.52 162,171.59 3,964,617.67 24,050.78 4,285.00 RIVERSIDE COUNTY TREASURER-TAX COLLECTOR 104 4,376,744.64 100.15% 10,005.85 100.07% 7,140.00 100.00% 16,038.52 100.00% 162,261.74 100.06% S&P BOOKO/o -AM·llo/o ISIIIIM··O% -M+-79o/o -MR • 9% -M-0% 3,968,955.19 24,050.78 4,285.00 100.11% 100.00% 100.00% 0.44% 0.47% 0.87% 0.40% 0.23% 0.38% 0.38% 0.23% 6 • • • Month End Portfolio Holdings Maturity Maturity Par Book Market Market Unrealized Modified Years To CUSIP Description Date Coupon To Mat Value Value Pri<e Value Gain/Loss Duration Maturity CO lXX MVRXX FEDERATED COV 10/01/2012 MORGANSTANLEYGOV 10/01/2012 CALTRUSTFND CLTR CAL TRUST SHT TERM FUND 10/01/2012 LOCAL AGCY JNVST FND LA IF LA IF 10/01/2012 DDA/PASSBK CASH UBOC MANAGED RATE 10/01(2012 LOCAL AGCY OBUG LAO US TREAS BILLS 912795520 U.S. TREASURY BILL ·us TREAS BONDS 912828PR5 U.S. TREASURY BOND 912828QZ6 U.S. TREASURY BOND 912828QK9 U.S. TREASURY BOND 912828PR5 U.S. TREASURY BOND 912828QZ6 U.S. TREASURY BOND 912828QZ6 U.S. TREASURY BOND 912828QW3 U.S. TREASURY BOND 912828RK8 U.S. TREASURY BOND 912828RK8 U.S. TREASURY BOND 912828RK8 U.S. TREASURY BOND 912828SB7 U.S. TREASURY BOND 912828SB7 U.S. TREASURY BOND 912828RN2 U.S. TREASURY BOND \t>''' :\'Itt -f:h•t' ~:L:o, ~~ ~::>J ffiLMC DISC NOTES 313397DU2 FH LMC DISC NOTE 313396K85 FHLMC DISC NOTE 313397CE5 •r~~~~~~~~~~~ 3134C1SGO FH LMC 3.5YcNc6Mo 3134G1 WT7 FH LMC 3137EACR8 FHLMC 3Yr 3137EACR8 FHLMC 3Yr 3134C1VC6 FHLMC 2Yr 3134C2CL4 FH LMC 3Yr 3137EACP2 FHLMC 2Yr 3137EACL1 FHLMC 3Yr 3134G2FT4 FHLMC 2.25Yr 3134C2U42 FH LMC 2Yr 3134C2\V73 FHLMC 2YrNc1YrE 3134C2Y89 FH LMC 3.5YrNc1 YrB 3137EACZO FH LMC 2Yr 3134C3BQ2 FHLMC 5YrNc1YrB 3134G3BF6 FHLMC 2Yr 3134C3BS8 FHLMC 2YcNc1YrE 3134G3B58 FHLMC 2YrNc1YrE 3134G3BL3 FHLMC 3YrNc1YrB 3134G3BL3 FHLMC 3YrNc1YrB 3134C3BL3 FHLMC 3YrNc1YrB 3134C3BL3 FHLMC 3YrNc1YrB 3134C3BL3 FHLMC 3YrNc1YrB 3134G3BA7 FHLMC 2YrNc1 YrB 3134G3BL3 FHUv!C 3YrNc1 YrB 3134G3CVO FH LMC 3YrNc1 YrB 3134C3DP2 FHLMC 3.5YrNc1YrB 3134C3EB2 FHLMC 3.5YrNc2YrE 3134C3DY3 FHLMC 3YrNc1YrB 3134G3EN6 FHLMC 3.5YrNc2YrE 3134G2U42 FHUv!C 1.5Yr 3134C3CC9 FHLMC 3YrNc1YrB 3134C3GZ7 FHLMC 2YrNc1 YrE 3134C3H D5 FHLMC 2hNc1YrB 3J34C3HD5 FHLMC 2YrNc1YrB 3134C3HD5 FHLMC 2YrNc1YrB 3134C3HA1 FHLMC 3YrNc1YrB 3J34C3HA1 FHLMC 3YrNc1YrB 3J34G3HAJ FHLMC 3YrNc1YrB 3J34G3HAJ FHLMC 3YrNcJYrB • 3MM9 FHLMC2YrNc1YrE 3MM9 FHUv!C 2YrNc1YrE C3LA6 FHLMC 2Yr 3J34C3LZ1 FHLMC 2YrNcJYrB 02/07/2013 01/31/2013 05/31/2013 02/28/2013 01/31/2013 05/31/20!3 05/31(2013 07/31/2013 09/30/2013 09/30/2013 09/30/2013 01/31/2014 01/31/2014 10/31/2013 01/09/2013 10/28/2013 03/03/2014 11/26/2012 02/25/2014 02/25/2014 10/30/2012 04/29/2014 11/30/2012 10/28/2013 08/13/2013 10/15/2013 10/18/2013 04/24/2015 11/27/2013 11/28/2016 12/23/2013 12/06/2013 12/06/2013 12/05/2014 12/05/2014 12/05/2014 12/05/2014 12/05/2014 12/05/2013 12/05/2014 12/19/2014 06/19/2015 06/30/2015 12/19/2014 06/30/2015 10/15/2013 01/09/2015 01/03/2014 01/24/2014 01/24/2014 01/24/2014 01/23/2015 01/23/2015 01/23/2015 01/23/2015 02/27/2014 02/27/2014 02/27/2014 02/21/2014 017 .050 .017 5,000,000.00 5,000,000.00 100.000000 5,000,000.00 .003 .003 .050 5,000,000.00 5,000,000.00 100.000000 5,000,000.00 .003 .003 .410 .410 54,000,000.00 54,000,000.00 100.000000 54,000,000.00 .003 .003 ·.uu 357 .357 'i$57 .083 083 .917 .917 .185 < .. : ..• 185 625 500 .625 .625 500 .500 .375 .125 .125 .125 .185 .18!; .151 .181 .176 .199 .243 .249 .251 .196 1% .189 .250 225 .250 .222 .250 .211 .210 .135 .170 1.375 .875 1.250 .515 1.375 1.375 .625 1.350 .375 .875 .875 .375 .500 1.000 .375 1.375 625 700 .700 1.000 1.000 1.000 1.000 1.000 .700 1.000 1.000 1.020 1.000 .875 1.000 .375 .850 .500 .600 .600 .600 .875 .875 .875 .875 .400 .400 .375 .500 .210 .135 .170 1.407 .937 1.250 .470 1.375 1.465 .650 1160 .385 .790 .6]] .483 516 1.007 .580 1.375 .626 .700 700 1000 1.000 1.000 1.000 1.000 .700 1.000 1.000 1.020 1.000 .875 1.000 .400 .850 .500 .600 .600 .600 .875 .875 .875 875 .400 .400 .394 .500 50,000,000.00 50,000,000.00 100.000000 50,000,000.00 .003 .003 · 50-000,\JOO.OO 170,000,000.00 170,000,000.00 100.000000 170,000,000.00 .003 .003 535,000.00 535,000.00 100.000000 535,000.00 3.956 7.712 50,000,000.00 49,915,465.28 99.963565 49,981,782.44 66,317.16 .355 .356 10,000,000.00 10,047,265.63 10,000,000.00 10,042,187.50 10,000,00000 .10,047,265.63 45,000,000.00 45,168,750 00 15,000,000.00 15,044,531.25 15,000,000.00 15,043,35938 25,000,000.00 25,033,200.00 20,000,000.00 19,983,593.75 20,000,000.00 19,983,593.75 10,000,000.00 9,992,578.13 25,000,000.00 25,008,789.06 25,000,000.00 25,009,765.63 25,000,000.00 25,010,742.19 50,000,000.00 25,000,000.00 50 000 000.00 10,000,000.00 5,000,000.00 5,000,000.00 5,000,000.00 5,000,000.00 10,000,000.00 5,000,000.00 5,000,000.00 14,121,000.00 ll,OOO,OOO.OO 5,000,000.00 15,000,000.00 5,000,000.00 5,000,000.00 10,000,000.00 5,000,000.00 10,000,000.00 5,000,000.00 5,000,000.00 5,000,000~00 5,000,000.00 5,000,000.00 5,000,000.00 5,000,000.00 5,000,000.00 10,000,000.00 5,000,000.00 10,000,000.00 5,000,000.00 5,000,000.00 5,000,000.00 5,000,000.00 10,000,000.00 5,000,000.00 5,000,000.00 5,000,000.00 5,000,000.00 5,000,000.00 5,000,000.00 5,000,000.00 6,500,000.00 5,000,000.00 5,000,000.00 10,000,000.00 5,000,000.00 49,894,416.67 24,990,812.50 49 934 125.00 9,990,300.00 4,990,300.00 5,000,000.00 5,004,700.00 5,000,000.00 9,973,100.00 4,998,000.00 5,027,800.00 14,118,881.85 11,022,330.00 5,028,775.00 14,967,300.00 4,998,437.50 4,998,750.00 9,958,700.00 5,000,000.00 9,999,800.00 5,000,000.00 5,000,000.00 5,000,000.00 5,000,000.00 5,000,000.00 5,000,000.00 5,000,000.00 5,000,000.00 10,000,000.00 5,000,000.00 10,000,000.00 5,000,000.00 5,000,000.00 5,000,000.00 4,997,700.00 ]0,000,000.00 5,000,000.00 5,000,000.00 5,000,000.00 5,000,000.00 5,000,000.00 5,000,000.00 5,000,000.00 6,500,000.00 5,000,000.00 5,000,000.00 9,996,000.00 5,000,000.00 100.164000 100.215000 100.199000 100.164000 100.215000 100.215000 100.164000 99.934000 99.934000 99.934000 10,016,400.00 10,021,500.00 10,019,900.00 45,073,800.00 15,032,250.00 15,032,250.00 25,041,000.00 19,986,800.00 19,986.800.00 9,993,400.00 (30,865.63) (20,687.50) (27,365.63) (94,950.00) (12,281.25) (11,109.38) 7,800.00 3,206.25 3,206.25 821.87 .337 .337 .665 .666 .413 .414 .336 .337 .665 .666 .665 .666 .831 .833 .999 1.000 .999 1.000 .999 1.000 100.047000 25,011,750.00 2,960.94 1.330 1.337 100.047000 25,011,750.00 1,984.37 1.330 1.337 100.055000 25,013,750.00 3,007.81 1.080 1.085 99.944000 99.999000 100.330000 100.705000 101.200000 100.054000 101.570000 101.570000 100.037000 101.699000 100.045000 100.705000 100.506000 100.166000 100.011000 100.037000 100.171000 99.732000 100.449000 100.044000 100.044000 100.097000 100.097000 100.097000 100.097000 100.097000 100.052000 100.097000 100.109000 100.139000 100.658000 100.155000 100.798000 100.166000 100.146000 100.008000 100.097000 100.097000 100.097000 100.152000 100.152000 100.152000 100.152000 100.089000 100.089000 100.185000 100.091000 49,972,000.00 24,999,750.00 77,583.33 8,937.50 .500 .044 .501 .044 49 956 500.00 22 375.00 .659 .660 10,033,000.00 5,035,250.00 5,060,000.00 5,002,700.00 5,078,500.00 10,157,000.00 5,001,850.00 5,084,950.00 14,127,354.45 11,077,550.00 5,025,300.00 15,024,900.00 5,000,550.00 5,001,850.00 10,017,100.00 4,986,600.00 10,044,900.00 5,002,200.00 5,002,200.00 5,004,850.00 5,004,850.00 5,004,850.00 5,004,850.00 5,004,850.00 5,002,600.00 10,009,700.00 5,005,450.00 10,013,900.00 5,032,900.00 5,007,750.00 5,039,900.00 5,008,300.00 10,014,600.00 5,000,400.00 5,004,850.00 5,004,850.00 5,004,850.00 5,007,600.00 5,007,600.00 5,007,600.00 6,509,880.00 5,004,450.00 5,004,450.00 10,018,500.00 5,004,550.00 42,700.00 44,950.00 60,000.00 (2,000.00) 78,500.00 183,900.00 3,850.00 57,150.00 8,472.60 55,220.00 (3,475.00) 57,600.00 2,112.50 3,10000 58,400.00 (13,400.00) 45,100.00 2,200.00 2,200.00 4,850.00 4,850.00 4,850.00 4,850.00 4,850.00 2,600.00 9,700.00 5,450.00 13,900.00 32,900.00 7,750.00 39,900.00 10,600.00 14,600.00 400.00 4,850.00 4,850.00 4,850.00 7,600.00 7,600.00 7,600.00 9,880.00 4,450.00 4,450.00 22,500.00 4,550.00 .275 1.066 1.407 .156 1383 1.382 .082 1.552 .167 1.067 .865 1.036 1.044 2.517 1.152 4.013 1.222 LJ74 LJ74 2.145 2.145 2.145 2.145 2.145 1.171 2.145 2.184 2.668 2.699 2.188 2.699 1.037 2.244 1.251 1.308 1.308 1.308 2.282 2.282 2.282 2.282 1.403 1.403 1.403 1.384 .277 1.077 1.422 .156 1.405 1.405 .082 1.578 .167 1.077 .868 1.041 1.049 2.564 1.159 4.164 1.230 1.184 1.184 2.181 2.181 2.181 2.181 2.181 UBI 2.181 2.219 2.718 2.748 2.219 2.748 1.041 2.277 1.260 1.318 1.318 1.318 2.315 2.315 2.315 2.315 1.411 1.411 1.411 1.395 RIVERIS!DE COUNTY TREASURER-TAX COLLECTOR 105 7 Month End Portfolio Holdings 1\faturity Maturity Par Book Market i\farket Unrealized Modified Years To CUSIP Description Dafe Coupon To Mat Value Value Price Value Gain/Loss Duration Maturity 3134C3MY3 FHLMC 3.5YrNr2YrE 3134C3MY3 FHL~IC 3.5YrNc"2YrE 3134C3NCO FHLMC 3YrNc"1YrB 3134C3NLO FHLMC 3YrNc"2YrE 3134C3PD6 FHLMC 3YrNr2YrE 3134C3NS5 FHLMC 2Yr 3134C3QW3 FHLMC 3YrNc2YrE 3134C3QW3 FHLMC 3YrNr2YrE 3134C3RP7 FHLMC 3YrNr2YrE 3134C3SH4 FHUvlC 5YrNc1YrB 3134C3550 FHLMC 2.5YrNr1YrE 3134C3QW3 FHLMC 3YrNc"2YrE 3134C35B7 FH LMC 2Yr 3134C2U42 FHLMC.19Mo 3137EADD8 FHLMC 3Yr 3137EADD8 FH LMC 3Yr 3134C3SB7 FHLMC 2.16Yr 3134C3}X9 FH UviC 3Yr 3134C3TL4 FHLMC 3.5YrNc2YrB 3134C35 87 FH LMC 2Y r 3134C3SB7 FHLMC 2Yr 3134C3SB7 FH LMC 2Yr 3134C35B7 FHLMC 2Yr 3134C3UU2 FHLMC 3YrNc1YrE 3134C3NS5 FHLMC 2Yr 3137EACX5 FHLMC 2Yr 3137EACX5 FH LMC 2Yr 3134C3LA6 FHLMC 2YrNr 3134C3ZA1 FHLMC 3.25YrNc 3134C3ZA 1 FH LMC 3.25YrNc 3134C3ZA1 FHLMC 3.25Yr 3134C3H78 FHLMC 2.25Yr 3134C3L24 FHLMC 3YrNc"1YrE 3134C3}76 FHLMC 3Yr 3134C3}76 FHLMC 3Yr 3134C3J76 FHLMC 3Yr 3134C3L24 FHLMC 3YrNc1YrE 3134C3}76 FH LMC 3Yr 3134C3J76 FHLMC 3Yr 3134C3ZA1 FHLMC 3Yr 3134C3ZA1 FHLMC 3Yr 3134C3 76 FHLMC 3Yr 313588M85 313589AC7 313589HP1 313589!F1 FNMA DISC NOTE FNMA DISC NOTE FNMA DISC NOTE FNMA DISC NOTE FNMABONDS 31398A3A8 FNMA 3136FPEL7 FNMA 3YrNc6Mo 3136FPEL7 FNMA 3YrNc6Mo 3136FPEL7 FNMA 3YrNc6Mo 3136FPEL7 FNMA 3YrNc6Mo 3136FPEL7 FNMA 3YrNc6Mo 31398A3L4 FNMA 3YrNc6Mo 31398A3L4 FNMA 3YrNr6Mo 31398A3L4 FNMA 3YrNc6Mo 31398A3L4 FNMA 3YrNc6Mo 31398A3L4 FNMA 3YrNc6Mo 3136FPEX1 FNMA 3.25YrNc6Mo 31398A3R1 FNMA 35YrNc6Mo 31398A4H2 FNMA 3YrNc6Mo 31398A4H2 FNMA 3YrNc6Mo 31398A4H2 FNMA 3YrNc6Mo 31398A5Z1 FNMA 3YrNc6Mo 31398A5Z1 FNMA 3YrNc6Mo 3136FPXXO FNMA 4Yr 3136FPZD2 FNMA 4YrNc2Mo 3136FP6XO FNMA 5Yr 3136FPUC9 FNMA 2Yr 3136FPUC9 FNMA 2Yr 31398A3K6 FNMA 4Yr 31398A5W8 FNMA 3Yr 3136FPUC9 FNMA 2Yr 31398AVZ2 FNMA 5Yr 31398A5Z1 FNMA 3Yr 31398A6F4 FNMA 1.75 Yr 3135COBR3 FNMA 2.25Yr 3135COBR3 FNMA 2Yr 31398A5W8 FNMA 3Yr 3!35COCU5 FNMA 3YrNc2YrE 3135COCU5 FNMA 3YrNc2YrE 31398A4T6 FNMA 2Yr 3136FTCX5 FNMA5YrNc1YrB 3136FTD)5 FNMA 5YrNc1YrB 3136FTFT1 FNMA 5YrNc1YrB 3135COEM1 FNMA 3YrNc1YrB 3135COEQ2 FNMA 3YrNc3MoB 08/28/2015 08/28/2015 02/27(2015 02/24/2015 02(27(2015 03/21/2014 03/06/2015 03/06/2015 03(12(2015 03/28/2017 09/22/2014 03(06/2015 04/28/2014 10/15(2013 04(17/2015 04/17(2015 04/28/2014 01/30/2015 09/28/2015 04/28/2014 04/28/2014 04/28/2014 04(28/2014 05/22/2015 03/21/2014 10/30(2013 10(30/2013 02/27/2014 08/28/2015 08/28/2015 08/28/2015 12/05/2014 09/25/2015 09/04/2015 09/04/2015 09/04/2015 09/25/2015 09/04/2015 09/04/2015 08/28/2015 08/28/2015 09 04 2015 11/01(2012 01(03(2013 07(01/2013 07(17/2013 09/03/2013 09/09/2013 09/09(2013 09(09(2013 09/09/2013 09/09/2013 09(17(2013 09/17(2013 09(17(2013 09(17(2013 09(17(2013 12(17/2013 03/21/2014 10(08/2013 10(08/2013 10/08(2013 11/19/2013 11(19(2013 11/26/2014 12/03(2014 02/04/2016 10/30/2012 10/30/2012 03(14/2014 12(18(2013 10(30/2012 03/13/2014 11/19/2013 12/28(2012 08/09/2013 08/09/2013 12/18/2013 09/12(2014 09/12/2014 10(30/2012 10(26(2016 10(26/2016 11/09/2016 11(07(2014 11/07/2014 .650 .650 5,000,000.00 5,000,000.00 100.533000 5,026,650.00 26,650.00 2.883 2.910 650 650 5,000,000.00 5,000,000 00 100.533000 5,026,650.00 26,650.00 2.883 • 550 .567 5,000,000.00 4,997,500.00 100.140000 5,007,00000 9,500.00 2.388 500 .581 5,000,000.00 4,988,000.00 100.148000 5,007,400.00 19,400.00 2.381 . .550 594 5,000,000.00 4,993,500.00 100.376000 5,018,800.00 25,300.00 2.388 2.411 .300 .378 10,000,000.00 9,984,000.00 100.135000 10,013,500.00 29,500.00 1.470 1.471 .625 .625 5,000,000.00 5,000,000.00 100.497000 5,024,850.00 24,850.00 2.410 2.430 .625 .625 5,000,000.00 5,000,000.00 100.497000 5,024,850.00 24,850.00 2.410 2.430 .650 .650 10,000,000.00 10,000,000.00 100.540000 10,054,000.00 54,000.00 2.426 2.447 1.050 1.050 5,000,000.00 5,000,000.00 100.478000 5,023,900.00 23,900.00 4.379 4.493 540 .540 5,000,000.00 5,000,000.00 100.176000 5,008,800.00 8,800.00 1.964 1.978 .625 .628 5,000,000.00 4,999,500.00 100.497000 5,024,850.00 25,350.00 2.410 2.430 .375 .427 5,000,000.00 4,994,400.00 100.189000 5,009,450.00 15,050.00 1.567 1.575 .375 .32.3 5,000,000.00 5,004,183.00 100.166000 5,008,300.00 4,117.00 1.037 1.041 .500 .611 10,000,00000 9,%6,500.00 100.344000 10,034,400.00 67,900.00 2.521 2.545 .500 .700 10,000,000.00 9,939,900.00 100.344000 10,034,400.00 94,500.00 2.520 2.545 .375 .460 5,000,000.00 4,991,050.00 100.189000 5,009,450.00 18,400.00 1.567 1.575 .650 .662 5,000,000.00 4,998,250.00 100.494000 5,024,700.00 26,450.00 2.310 2.334 .900 .900 5,000,000.00 5,000,000.00 100.883000 5,044,150.00 44,150.00 2.948 2.995 .375 .509 10,000,000.00 9,972,500.00 100.189000 10,018,900.00 46,400.00 1.566 1.575 .375 .440 5,000,000.00 4,993,250.00 100.189000 5,009,450.00 16,200.00 1.567 1.575 .375 .452 5,000,000.00 4,992,015.05 100.189000 5,009,450.00 17,434.95 1.567 1.575 .375 .437 12,000,000.00 11,984,880.00 100.189000 12,022,680.00 37,800.00 1.567 1.575 .600 .600 5,000,000.00 5,000,000.00 100.189000 5,009,450.00 9,450.00 2.614 2.641 .300 .345 10,000,000.00 9,992,000.00 100.135000 10,013,500.00 21,500.00 1.470 1.471 .375 .318 10,000,000.00 10,007,600.00 100.158000 10,015,800.00 8,200.00 1.079 1.082 .375 .320 10,000,000.00 10,007,200.00 100.158000 10,015,800.00 8,600.00 1.079 1.082 .375 .303 10,000,000.00 10,011,600.00 100.185000 10,018,500.00 6,900.00 1.403 1.411 .500 .500 15,000,000.00 15,000,000.00 100.290000 15,043,500.00 43,500.00 2.891 2.910 .500 .506 15,000,000.00 14,997,150.00 100.290000 15,043,500.00 46,350.00 2.891 2.910 .500 .519 15,000,000.00 14,991,300.00 100.290000 15,043,500.00 52,200.00 2.891 2.910 .350 .350 10,000,000.00 10,000,000.00 100.096000 10,009,600.00 9,600.00 2.172 2.181 .500 .500 10,000,00000 10,000,000.00 100.128000 10,012,800.00 12,800.00 2.960 2.986 .450 .428 10,000,000.00 10,006,520.00 100.140000 10,014,000.00 7,480.00 2.904 2.929 .450 .420 10,000,000.00 10,008,800.00 100.140000 10,014,000.00 5,200.00 2.905 2.929 .450 .420 15,000,000.00 15,013,200.00 100.140000 15,021,000.00 7,800.00 2.905 2.929 .500 .500 10,000,000.00 10,000,000.00 100.128000 10,012,800.00 12,800.00 2.960 2.986 .450 .424 15,000,000.00 15,011,481.90 100.140000 15,021,000.00 9,518.10 2.904 2.929 .450 .440 25,000,000.00 25,007,250.00 100.140000 25,035,000.00 27,750.00 2.904 2.929 .500 .430 5,000,000.00 5,010,265.00 100.290000 5,014,500.00 4,235.00 2.892 2.910 .500 .425 5,250,000.00 5,261,412.50 100.290000 5,265,225.00 3,812.50 2.892 2.910 .450 .425 10 000 000.00 10 007 260.00 100.140000 10 014 000.00 6 740.00 2.904 2.929 • ':621> c;;,:<632Yli bi!~;Ji7~JIWJOt1i'0'0:=W,.7J::, .•. ~~\ 11;: ;~ ~'*: ·. H~f)l·~o/i;~:l!'ISI~ti'I\W~~-Jif.<wz,;a .140 .140 .180 .140 .140 .180 50,000,000.00 50,000,000.00 25,000,000.00 49,935,444.44 99.997000 49,998,500.00 63,055.56 .087 49,930,583.33 99.987000 49,993,500.00 62,916.67 .260 24,961,500.00 99.894000 24,973,500.00 12,000.00 .749 • .180 .180 25,000,000.00 24,959,625.00 99.888000 24,972,000.00 12,375.00 .793 .795 1.050 1.050 1.050 1.050 1.050 1.050 1.125 1.125 1.125 1.125 1.125 1.125 1.350 1.125 l.l25 1.125 800 .800 1.050 1.125 .472 .500 .500 1.250 .750 .500 2.750 .800 .375 .500 .500 .750 .625 .625 .500 1.250 1.000 1.500 1.000 1.000 1.058 1.050 1.050 1.050 1.084 1.050 1.132 1.125 J.l25 J.l25 1.125 1.141 1.350 1.125 l.l25 1.125 .800 .800 1.050 1.125 .501 550 557 1.278 1.194 .473 1.128 .870 .349 .580 .600 .480 .625 .625 .228 1.250 1.006 1.500 1.000 1.000 5,000,000.00 5,000,000.00 5,000,000.00 5,000,000.00 5,000,000.00 5,000,000.00 5,000,000.00 10,000,000.00 5,000,000.00 5,000,000.00 5,000,000 00 5,000,000.00 5,000,000.00 5,000,000.00 5,000,000.00 5,000,000.00 10,000,000.00 5,000,000.00 10,000,000.00 10,000,000.00 10,000,000.00 15,000,000.00 10,000,000.00 5,000,000.00 5,000,000.00 5,000,000.00 10,000,000.00 5,000,000.00 5,000,000.00 10,000,000.00 10,000,000.00 10,000,000.00 5,000,000.00 5,000,000.00 20,000,000 00 10,000,000.00 5,000,000.00 12,685,000.00 10,000,000.00 10,000,000.00 4,998,750.00 5,000,000.00 5,000,000.00 5,000,000.00 4,995,000.00 5,000,000.00 4,999,000.00 10,000,000.00 5,000,000.00 5,000,000.00 5,000,000.00 4,997,500.00 5,000,000.00 5,000,000.00 5,000,000.00 5,000,000.00 10,000,000.00 5,000,000.00 10,000,000.00 10,000,000.00 9,990,000.00 14,988,000.00 9,991,000.00 4,996,000.00 4,941,950.00 5,002,000.00 10,454,500.00 4,991,250.00 5,002,000.00 9,983,000.00 9,979,200.00 10,063,305.58 5,000,000.00 5,000,000.00 20,059,800.00 10,000,000.00 4,998,500.00 12,685,000.00 10,000,000.00 10,000,000.00 100.662000 100.637000 100.637000 100.637000 100.637000 100.637000 100.801000 100.801000 100.801000 100.801000 100.801000 100.256000 101.323000 100.929000 100.929000 100.929000 100.515000 100.515000 100.136000 100.154000 100.102000 100.019000 100.019000 101.441000 100.664000 100.019000 103.608000 100.515000 100.069000 100.248000 100.248000 100.664000 100.322000 100.322000 100.027000 100.073000 100.050000 ' 100.150000 100.061000 100.059000 5,033,100.00 5,031,850.00 5,031,850.00 5,031,850.00 5,031,850.00 5,031,850.00 5,040,050.00 10,080,100.00 5,040,050.00 5,040,050.00 5,040,050.00 5,012,800.00 5,066,150.00 5,046,450.00 5,046,450.00 5,046,450.00 10,051,500.00 5,025,750.00 10,013,600.00 10,015,400.00 10,010,200.00 15,002,850.00 10,001,900.00 5,072,050.00 5,033,200.00 5,000,950.00 10,360,800.00 5,025,750.00 5,003,450.00 10,024,800.00 10,024,800.00 10,066,400.00 5,016,100.00 5,016,100.00 20,005,400.00 10,007,300.00 5,002,500.00 12,704,027.50 10,006,100.00 10,005,900.00 34,350.00 31,850.00 31,850.00 31,850.00 36,850.00 31,850.00 41,050.00 80,100.00 40,050.00 40,050.00 40,050.00 15,300.00 66,150.00 46,450.00 46,450.00 46,450.00 51,500.00 25,750.00 13,600.00 15,400.00 20,200.00 14,850.00 10,900.00 76,050.00 91,250.00 (1,050.00) (93,700.00) 34,500.00 1,450.00 41,800.00 45,600.00 3,094.42 16,100.00 16,100.00 (54,400.00) 7,300.00 4,000.00 19,027.50 6,100.00 5,900.00 .918 .934 .934 .934 .934 .934 .956 .956 .956 .956 .956 1.199 1.455 1.008 1.008 1.008 1.126 1.126 2.118 2.135 3.321 .082 .082 1.437 1.204 .082 1.425 1.125 .243 .855 .855 1.208 1.935 1.935 .082 3.937 3.964 3.947 2.068 2.068 .926 .942 .942 .942 .942 .942 .964 .964 .964 .964 .964 1.214 1.471 1.022 1.022 1.022 1.137 1.137 2.156 2.175 3.348 .082 .082 1.452 1.216 .082 1.449 Ll37 .244 .858 .858 1.216 1.951 1.951 .082 • 2.1 2.104 RIVERISIDE COUNTY TREASURER-TAX COLLECTOR 106 8 Month End Portfolio Holdings Maturity l\faturity Par Book Market Market Unrealized Modified Years To CUSIP Description Date Coupon To Mat Value Value Price Value Gain/Loss Duration Maturity • 35COET6 COFFS COFFS COFS7 3136FTQJ1 3136FTMT3 3136FTMP1 3135COCC1 3136FTSB6 3136FTSH3 FNMA 3YrNc1YrE FNMA 3YrNc1YrB FNMA 3YrNcJYrB FNMA 2YrNc1YrB FNMA 5YrNc1YrB FNMA SYrNcJYrB FNMA 5YrNc1YrB FNMA 3YrNc2YrE FNMA 5YrNc1YrB FNMA 5YrNc1YrB 3136FTTQ2 FNMA 5YrNc1YrB 3135COCM9 FNMA 3YrNc2YrE 3135COCM9 FNMA 3YrNc2YrE 3136FTVW6 FNMA 5YrNc1YrB 3136FTZP7 FNMA 5YrNc1YrB 3136FTB65 FNMA 5YrNcJYrB 3136FTL23 FNMA 3YrNc1YrE 3136FTW62 FNMA 5YrNc1YrB 3136FT2DO FNMA 5YrNc1YrB 3136FT2K4 FNMA 5YrNc1YrB 3136FT2K4 FNMA 5YrNc1YrB 3136FT2K4 FNMA 5YrNc1YrB 3135CO)BO FNMA 3YrNc1YrB 3135GOHC1 FNMA 3Yr 3135COBR3 FNMA 1.4Yr 3135C0))3 FNMA 3YrNc1YrB 3136COAV3 FNMA 3YrNc6JvloB 3135CO)U8 FNMA 3YrNc1YrB 3135COKD4 FNMA 3YrNc1YrE 3135CO)T1 FNMA 3YrNc6JvloB 3135CO)YO FNMA 3YrNc1YrE 3135COKL6 FNMA 2.5YrNc1YrE 3135COKS1 FNMA 2.75YrNcl YrB 3135GOKM4 FNMA 3Yr 3135GOLG6 FNMA 3YrNc1YrE 3135COLX9 FNMA 3YrNc6JvloB 3135COLX9 FNMA 3YrNc6MoB 3136COMZ1 FNMA 5YrNc1YrB 3135GOLX9 FNMA 3YrNc6MoB 3135GOLX9 FNMA 3YrNc6JvloB 3135GOLX9 FNMA 3YrNc6MoB 3135GOLX9 FNMA 3YrNc6MoB 3135GOLN1 FNMA 3Yr • ORP8 FNMA5YrNcJYrB OPU9 FNMA 5YrNc1YrB OML4 FNMA 3YrNc6JvloB 3135GOMQ3 FNMA 2YrNc1YrB 3136CORTO FNMA 5YrNc1YrB 3136GORW3 FNMA 5YrNc2YrB 3136GORP8 FNMA 5YrNc1YrB 3136GORP8 FNMA 5YrNc1YrB 3135GOML4 FNMA 3YrNc6MoB 3135GOML4 FNMA 3YrNc6JvloB 3135COML4 FNMA 3YrNc6JvloB 3135COMP5 FNMA 3YrNc1YrE 3136GOUC3 FNMA 4YrNc1YrB 3136COTZ4 FNMA 5YrNc1YrB 3136COVZ1 FNMA 5YrNc1YrB 313380863 FNMA 5YrNc3JvloB 3136GOUX7 FNMA 5YrNc1YrB 3136GOVA6 FNMA 5YrNc1YrB 3135GOLN1 FNMA 2Yr 3135GOLN1 FNMA 3Yr 3135CONQ2 FNMA 3YrNc6Mo 3135CON)8 FNMA 4YrNc6MoB 3136GOUC3 FNMA 4YrNcJYrB 3135GONV1 FNMA 3Yr 3136GOYU9 FNMA 5YrNc1YrB 3136GOA27 FNMA 5YrNc1YrB 3136GOA27 FNMA 5YrNcJYrB 3136GOB59 FNMA 5YrNcJYrB 3136GOE64 FNMA 5YrNc1YrB 3136GOE64 FNMA 5YrNc1YrB 3136COB59 FNMA 5YrNc1YrB 3135CONV1 FNMA 3Yr ,;A~/;: ~-,.tr:' )' ~Sffi ; -:t-tr: ,_ FHLB DISC NOTES 313384M71 FHLB DISC NOTE 313385BD7 FHLB DISC NOTE 313385GP5 FHLB DISC NOTE 313385HA7 FHLB DISC NOTE 313385HK5 FHLB DISC NOTE 313384L64 FHLB DISC NOTE 313384K24 FHLB DISC NOTE JJ/07/2014 Jl/14/2014 11/14/2014 Jl/21/2013 JJ/21/2016 11/21/2016 JJ/23/2016 12/05/2014 12/07/2016 12/20/2016 12/28/2016 12/23/2014 12/23/2014 12/28/2016 01/30/2017 01/30/2017 02/13/2015 03/08/2017 03/22/2017 03/20/2017 03/20/2017 03/20/2017 03/13/2015 03/16/2015 08/09/2013 03/26/2015 07/]7/2015 04/]7/2015 04/24/2015 04/23/2015 04/23/2015 10/30/2014 02/10/2015 05/27/2015 05/29/2015 06/26/2015 06/26/2015 06/28/2017 06/26/2015 06/26/2015 06/26/2015 06/26/2015 07/02/2015 07/26/2017 07/10/2017 07/]6/2015 01/26/2015 07/26/2017 07/25/2017 07/26/2017 07/26/2017 07/16/2015 07/16/2015 07/]6/2015 07/17/2015 08/16/2016 08/15/2017 08/14/2017 08/16/2017 08/16/2017 08/14/2017 07/02/2015 07/02/2015 08/20/2015 02/22/2016 08/16/2016 09/28/2015 08/28/2017 09/20/2017 09/20/2017 09/20/2017 09/27/2017 09/27/2017 09/20/2017 09/28/2015 12/14/2012 06/14/2013 08/28/2013 .900 J.ooo' 1.000 .600 1.625 1.125 1.125 850 1.000 1.250 1.500 .825 .825 1.125 1.000 1.000 .300 1.000 1.000 1.100 1.100 1.100 .700 .375 .500 .700 .850 .750 .750 .760 .700 .500 .560 .500 .650 .700 .700 .750 .700 .700 .700 .700 .500 .875 .850 .650 .500 1.150 .750 .875 .875 .650 .650 .650 .600 .500 .750 .625 .625 .750 .625 .500 .500 .600 .600 500 .500 .750 .750 .750 .700 .700 .700 700 .500 900 1.000 1.000 .600 1.625 1.125 1.125 .850 1.000 1.250 1.500 .825 .825 1.125 1.000 1.000 .300 1.000 1.000 1.100 1.104 1.100 .700 .550 .330 .725 .850 .750 .750 .777 .700 .500 .560 .533 .660 .700 .700 .750 .700 .700 .700 .703 .540 .875 .850 .650 .500 1.150 .750 .875 .875 .650 .650 .650 .600 .500 .750 .625 .625 .750 .635 .420 .449 600 .600 .500 .528 .750 .750 .750 .700 .700 .700 .700 .440 10,000,000.00 5,000,000.00 10,000,000.00 5,000,000.00 5,000,000.00 5,000,000.00 12,000,000.00 5,000,000.00 5,000,000.00 10,000,000.00 10,000,000.00 5,000,000.00 5,000,000.00 5,000,000.00 10,000,000.00 5,000,000.00 10,000,000 00 5,000,000.00 5,000,000.00 5,000,000.00 12,000,000.00 5,000,000.00 5,000,000 00 10,000,000.00 1 0,000,000.00 5,000,000.00 5,000,000.00 5,000,000.00 4,740,000.00 4,740,000.00 5,425,000.00 5,425,000.00 10,000,000.00 10,000,000.00 5,000,000.00 5,000,000.00 5,000,000.00 5,000,000.00 5,600,000.00 5,600,000.00 5,000,000.00 4,999,000.00 4,400,000.00 4,400,000.00 5,000,000.00 5,000,000.00 5,000,000.00 4,973,800.00 5,000,000.00 5,011,850.00 5,000,000.00 4,996,250.00 10,000,000.00 10,000,000 00 5,000,000.00 5,000,000.00 5,000,000.00 5,000,000.00 5,000,000.00 4,997,500.00 5,000,00000 5,000,000.00 10,000,000.00 10,000,000.00 5,000,000.00 5,000,000.00 5,000,000.00 4,995,000.00 5,000,000.00 4,998,500.00 10,000,000.00 10,000,000.00 5,000,000.00 5,000,000.00 5,000,000.00 5,000,000.00 5,000,000.00 5,000,000.00 5,000,000.00 5,000,000.00 10,000,000.00 10,000,000.00 15,000,000.00 14,998,500.00 10,000,000.00 9,988,000.00 5,000,000.00 5,000,000.00 4,980,000.00 4,980,000.00 5,000,000.00 5,000,000.00 20,000,000.00 20,000,000.00 5,000,000.00 5,000,000.00 10,000,000.00 10,000,000.00 10,000,000.00 10,000,00000 5,000,000.00 5,000,000.00 5,000,000.00 5,000,000.00 5,000,000.00 5,000,000.00 4,740,000.00 4,740,000.00 5,000,000.00 5,000,000.00 5,000,000.00 5,000,000.00 5,000,000.00 5,000,000.00 5,000,000.00 5,000,000.00 4,850,000.00 4,850,000.00 5,000,000.00 5,000,000.00 10,000,000.00 9,995,000.00 10,000,000.00 10,023,000.00 10,000,000.00 10,014,700.00 5,000,000.00 5,000,000.00 5,000,000.00 5,000,000.00 5,000,000.00 5,000,000.00 10,000,000.00 9,991,400.00 10,000,000.00 10,000,000.00 5,000,000.00 5,000,000.00 10,000,000 00 10,000,000.00 5,000,000.00 5,000,000.00 5,000,000 00 5,000,000.00 5,000,000.00 5,000,000.00 5,000,000.00 5,000,000.00 15,000,000.00 15,027,150.00 100.05b()(JO 100.069000 100.069000 100.030000 100.181000 100.118000 100.126000 100.471000 100.104000 100 222000 100.287000 100.445000 100.445000 100.233000 100345000 IOO.JJ 6000 100.037000 100.287000 100.392000 100.214000 100.214000 100.214000 100.139000 100.050000 100.248000 100.291000 100.029000 100.231000 100.139000 100.029000 100.197000 100.056000 100.JJ6000 100.310000 100.140000 100.105000 100.105000 100.299000 100.105000 100.105000 100.105000 100.105000 100.299000 100.410000 100.414000 100.067000 99.951000 100.407000 100.484000 100.410000 100.410000 100.067000 100.067000 100.067000 100.171000 100.109000 100137000 100.182000 100.036000 100.083000 100.JJ5000 100.299000 100.299000 100.061000 100.059000 100.109000 100.268000 100.567000 100.241000 100.241000 100.152000 100.10b000 100.106000 100.152000 100.268000 10,005,60000 5,600.00 5,003,450.00 3,450.00 10,006,900.00 6,900.00 5,001,50000 1,500.00 5,009,050.00 9,050.00 5,005,900.00 5,900.00 12,015,120.00 15,120.00 5,023,550.00 23,550.00 5,005,200.00 5,200.00 10,022,200.00 22,200.00 10,028,700.00 28,700.00 5,022,250.00 22,250.00 5,022,250.00 22,250.00 5,011,650.00 11,65000 4,756,353.00 16,353.00 5,431,293.00 6,293.00 10,003,700 00 3,700 00 5,014,350.00 14,350.00 5,019,600.00 19,600.00 5,611,984.00 JJ,984.00 5,010,700.00 ]],700.00 4,409,416.00 9,416.00 5,006,950.00 6,950.00 5,002,500 00 28,700.00 5,012,400.00 550.00 5,014,550.00 18,300.00 10,002,900.00 2,900.00 5,011,550.00 ]],550.00 5,006,950.00 6,950.00 5,001,450.00 3,950.00 5,009,850.00 9,850.00 10,005,600.00 5,600.00 5,005,800.00 5,800.00 5,015,500.00 20,500.00 5,007,000.00 8,500.00 10,010,500.00 10,500.00 5,005,250.00 5,250.00 5,014,950.00 14,950.00 5,005,250.00 5,250.00 5,005,250.00 5,250.00 10,010,500.00 10,500.00 15,015,750.00 17,250.00 10,029,900.00 41,900.00 5,020,500.00 20,500.00 5,000,617.20 20,617.20 5,003,350.00 3,350.00 19,990,200.00 (9,800.00) 5,020,350.00 20,350.00 10,048,400.00 48,400.00 10,041,000.00 41,000.00 5,020,500.00 20,500.00 5,003,350.00 3,350.00 5,003,350.00 3,350.00 4,743,175.80 3,175.80 5,008,550 00 8,550.00 5,005,450.00 5,450.00 5,006,850.00 6,850.00 5,009,100.00 9,100.00 4,851,746.00 1,746.00 5,004,150.00 4,150.00 10,011,500.00 16,500.00 10,029,900.00 6,900.00 10,029,90000 15,200.00 5,003,050.00 3,050.00 5,002,950.00 2,950.00 5,005,450.00 5,450 00 10,026,800.00 35,400.00 10,056,700.00 56,700 00 5,012,050.00 12,050.00 10,024,10000 24,100,00 5,007,600.00 7,600.00 5,005,300.00 5,300.00 5,005,300.00 5,300.00 5,007,600.00 7,600.00 ,~~::.:: 'i#st>J::~: 2.071 2.087 2.087 1.134 3.967 4 020 4.025 2.150 4.077 4.086 4.082 2.201 2.201 4.122 4.224 4.224 2.358 4.329 4.367 4.351 4.351 4.351 2.427 2.445 .856 2.463 2.754 2.510 2.529 2.526 2.529 2.066 2.343 2.633 2.631 2.703 2.703 4.644 2.703 2.703 2.703 2.703 2.730 4.705 4.664 2.761 2.304 4.669 4.719 4.705 4.705 2.761 2.761 2.761 2.767 3.833 4.774 4.788 4.793 4.777 4.787 2.731 2.731 2.858 3.353 3.833 2.968 4.815 4.871 4.871 4.877 4.897 4.897 4.877 2.969 2.104 2.123 2.123 1.142 4.145 4.145 4.151 2.181 4.189 4.225 4247 2.230 2.230 4.247 4.337 4.337 2.373 4.438 4.477 4.471 4.471 4.471 2.449 2.458 .858 2.485 2.795 2.545 2.564 2.562 2.562 2.082 2.364 2.655 2.660 2.737 2.737 4.745 2.737 2.737 2.737 2.737 2.753 4.822 4.778 2.792 2.323 4.822 4.819 4.822 4.822 2.792 2.792 2.792 2.795 3.879 4.877 4.874 4.879 4.879 4.874 2.753 2.753 2.888 3.397 3.879 2.995 4.912 4.975 4.975 4.975 4.995 4.995 4.975 2.995 .170 .170 50,000,000.00 49,914,291.67 99.997500 49,998,750.00 84,458.33 .085 .085 .140 .140 25,000,000.00 .200 .200 50,000,000.00 .200 .200 50,000,000.00 .220 .220 50,000,000.00 .135 .135 12,000,000.00 .130 .130 25,000,000.00 .190 .190 40 000 000.00 1.750 1.612 1.625 1.198 .875 .851 5,000,000.00 15,000,000.00 5,000,000.00 24,964,805.56 99.983472 24,995,868.06 49,898,888.89 99.903167 49,951,583.33 49,898,888.89 99.898889 49,949,444.44 49,890,000 00 99.895389 49,947,694.44 11,995,005.00 99.998250 11,999,790.00 24,991,875.00 99.999250 24,999,812.50 39 924 422.40 99.856000 39 942 400.00 5,020,050.00 15,185,100.00 5,003,500 00 100.308000 101.000000 100.615000 5,015,400.00 15,150,000.00 5,030,750.00 31,062.50 .328 .329 52,694.44 .683 .685 50,555.55 .713 .715 57,694.44 .738 .740 4,785.00 .060 .060 7,937.50 .027 .027 17 977.60 .948 .951 (4,650.00) (35,100.00) 27,250.00 .204 .205 .697 .704 .911 .910 RIVERISIDE COUNTY ill.EASURER-TAX COLLECTOR 107 9 Month End Portfolio Holdings Maturity Maturity Par Book Market Market Unrealized Modified Years To CUSIP Description Date Coupon ToMat Value Value Price Value Gain/Loss Duration Maturity 313370T84 FHLB 3Yr 313371PM2 FHLB2.6Yr 313371 UC8 FH LB 3.2Yr 313372KE3 FHLB4Yr 3133XYVC6 FHLB 5Yr 3133XWKVO FHLB 3Yr 3133736HO FHLB 25Yr 313373CZ3 FHLB 3Yr 313373F98 FHLB 2.25Yr 313373537 FHLB 2.25Yr 313374FU9 FHLB 3Yr 313374N63 FHLB 2Yr 313374Y61 FHLB 2Yr 313374VY3 FHLB 1.5Yr 313374VY3 FHLB 1.2Yr 313374VY3 FHLB 1.2Yr 313375XH5 FHLB 1Yr 313374VY3 FHLB 1.2Yr 313375X51 FHLB 1Yr 313375R33 FHLB 1YrNc3MoE 31337670 FHLB 1Yr 313376A47 FH LB 2Yr 313376BU8 FHLB 1Yr 313376CW3 FHLB 1.5Yr 313376CW3 FHLB 1.5Yr 313376CW3 FHLB 1.5Yr 313376DW2 FHLB 1Yr 313376CW3 FHLB 15Yr 313376CW3 FHLB 15Yr 313376CW3 FH LB 1.5Yr 3133760E2 313376085 313376GK5 313376C86 313376JE6 313376)08 313376)55 313376JY2 313376)55 313376)08 313376Kj3 313376JD8 313376)08 313376Kj3 313376GT6 313376GT6 313376)08 313376)08 313376Kj3 313376)08 313376Kj3 313376LR4 313376G58 313376G66 313374VY3 313376GT6 313376LW3 313376KL8 313376MP7 313376036 313376MP7 313376MP7 313376P58 313376MZ5 313376)55 313376A% 313376QN8 313376QN8 313376RHO 313376UFO 313376VJl8 313376UY9 FHLB 1.5Yr FHLB 18Mo FHLB1.5Yr FHLB 1.5Yr FHLB15Yr FHLB 1Yr FHLB15Yr FHLB15Yr FHLB 15Yr FHLB 1Yr FHLB 18Mo FHLB 1Yr FHLB 1Yr FHLB 18Mo FHLB15Yr FHLB1.5Yr FHLB1Yr FHLB1Yr FHLB 15Yr FHLB 1Yr FHLB1.5Yr FHLB1Yr FHLB 1Yr FHLB13Mo FHLB 13Mo FHLB15Yr FHLB 1Yr FHLB 1.5Yr FHLB 1Yr FHLB15Yr FHLB 1Yr FHLB1Yr FHLB 1.5Yr FHLB 1Yr FHLB 1.5Yr FHLB 15Yr FHLB 1YrNc9MoE FHLB 1YrNc9MoE FHLB 1.25Yr FHLB2Yr FHLB2Yr FHLB 1.5Yr 313376V51 FHLB l3MoNc9MoE 313376U78 FHLB 1Yr 313376TQ8 FHLB 1Yr 313376WM3 FHLB 1Yr 313376VB8 FHLB 15Yr 313376WM3 FHLB 1Yr 313376550 FHLB 1.75YrNc9MoB 313376XA8 FHLB 1Yr 313376UY9 FHLB 15Yr 313378484 FHLB 1Yr 313376UY9 FHLB 1.5Yr 3133784T5 FHLB 15Yr 313376VB8 FHLB 15Yr 313378457 FHLB 1Yr 313378AC5 FHLB 3Yr 313378CE9 FHLB 1.2Yr 313378659 FHLB 1Yr 313378BT7 FHLB 1Yr 07/29/2013 06/26/2013 12/27/2013 02/04/2015 06/18/2015 03/14/2014 09/26/2013 05/27/2014 08/15/2013 08/28/2013 07/07/2014 05/30/2013 08/28/2013 01/29/2013 01/29/2013 01/29/2013 10/24/2012 01/29/2013 10/24/2012 10/03/2012 11/07/2012 11/29/2013 11/15/2012 05/21/2013 05/21/2013 05/21/2013 11/29/2012 05/21/2013 05/21/2013 05/21/2013 05/28/2013 05/16/2013 06/03/2013 05/07/2013 05/30/2013 01/11/2013 07/09/2013 06/19/2013 07/09/2013 01/11/2013 06/21/2013 01/11/2013 01/11/2013 06/21/2013 05/30/2013 05/30/2013 01/11/2013 01/11/2013 06/21/2013 01/11/2013 06/21/2013 12/13/2012 12/28/2012 12/21/2012 01/29/2013 05/30/2013 01/04/2013 06/21/2013 01/03/2013 05/16/2013 01/03/2013 01/03/2013 06/28/2013 01/18/2013 07/09/2013 05/03/2013 01/18/2013 01/18/2013 04/12/2013 01/29/2014 07/30/2013 08/05/2013 02/20/2013 02/01/2013 02/06/2013 02/08/2013 07/30/2013 02/08/2013 10/25/2013 02/15/2013 08/05/2013 02/08/2013 08/05/2013 08/09/2013 07/30/2013 02/11/2013 05/22/2015 05/07/2013 02/28/2013 02/15/2013 .850 500 .875 .382 .885 2.375 1.000 1.500 1.000 .750 .910 500 .500 .375 .375 .375 .230 .375 .220 .350 .200 .450 .200 .340 .340 .340 .200 .340 .340 .340 .310 .340 .320 .300 .375 .210 .375 .400 .375 .210 .400 .210 .210 .400 .350 .350 .210 .210 .400 .210 .400 .200 .200 .190 .375 .350 .200 .400 .210 .300 .210 .210 .350 .200 .375 .370 .300 .300 .240 .375 .250 .250 .200 .180 .170 .170 .250 .170 550 .170 .250 .170 .250 .250 .250 .170 .500 .260 .190 .190 RIVERISIDE COUNTY TREASURER-TAX COLLECTOR .840 590 .934 .382 .219 1.404 1.000 1.500 1.000 .671 .910 500 .567 250 .315 .310 .259 .315 .220 .350 .203 .470 .213 .343 .343 .340 .203 .340 .340 .340 .310 .340 .320 .340 .375 .249 .375 .400 .375 .244 .400 .239 .214 .380 .344 .344 .229 .210 .348 .215 .371 .208 .203 .198 .203 .330 .200 .361 .210 .290 .204 .204 .350 .203 .350 .293 .300 .300 .243 .375 .268 .250 .200 .180 .183 .183 .288 .165 508 .173 .285 .170 .250 .250 .266 .170 .500 .260 .219 .219 5,000.000 00 10,000,000.00 10,000,000.00 15,000,000.00 5,000,000.00 5,000,000.00 5,000,000.00 5,000,000.00 7,500,000.00 5,000,000.00 10,000,000.00 10,000,000.00 10,000,000.00 5,000,000.00 20,000,000.00 7,750,000.00 20,000,000.00 10,000,000.00 15,000,000.00 2,800,000.00 5,000,000.00 5,000,000.00 20,000,000.00 10,000,000.00 10,000,000.00 15,000,000.00 5,000,000.00 15,000,000.00 10,000,000.00 5,000,000.00 15,000,000.00 15,000,000.00 15,000,000.00 10,000,000.00 15,000,000.00 25,000,000.00 10,000,000.00 10,000,000.00 10,000,000.00 10,000,000.00 10,000,000.00 10,000,000.00 5,000,000.00 10,000,000.00 15,000,000.00 15,000,00000 10,000,000.00 10,000,000.00 15,000,000.00 15,000,000.00 8,000,000.00 10,000,000.00 10,000,000.00 10,000;000.00 I 0,355,000.00 5,000,000.00 25,000,000.00 10,000,000.00 10,000,000.00 10,000,000.00 5,000,000.00 5,000,000.00 10,000,000.00 10,000,000.00 10,085,000.00 10,000,000.00 10,000,000.00 10,000,000.00 10,000,000.00 5,000,000.00 5,000,000.00 5,000,000.00 5,000,000.00 5,000,000.00 5,000,000.00 5.000,000.00 5,000,000.00 5,000,000.00 2,000,000.00 10,000,000.00 5,000,000.00 5,000,000.00 5,000,000.00 5,000,000.00 5,000,000.00 5,000,000.00 5,000,000.00 15,000,000.00 5,000,000.00 5,000,000.00 108 5,001,442.61 9,976,500.00 9,982,000 00 15,000,000.00 5,091,325.00 5,140,200.00 5,000,000.00 5,000,000.00 7,500,000.00 5,008,850.00 10,000,000.00 10,000,000.00 9,986,100.00 5,008,800.00 20,015,866.20 7,756,634.00 19,994,200.00 10,007,870.00 15,000,000.00 2,800,000.00 4,999,830.00 4,997,94455 19,997,400.00 9,999,500.00 9,999,500.00 15,000,000.00 4,999,850.00 15,000,000.00 10,000,000.00 5,000,000.00 15,000,000.00 15,000,000.00 15,000,000.00 9,994,300.00 15,000,000.00 24,989,425.00 10,000,000.00 10,000,000.00 10,000,000.00 9,996,359.34 10,000,000.00 9,996,900.00 4,999,800.00 10,002,988.60 15,001,381.80 15,001,350.00 9,998,000.00 10,000,000.00 15,011,550.00 14,999,250.00 8,003,520.00 9,999,200.00 9,999,700.00 9,999,168.10 10,375,399.35 5,001,450.00 25,000,000.00 10,005,900.00 10,000,000.00 10,001,400.00 5,000,330.00 5,000,330.00 10,000,000.00 9,999,670.00 10,088,810.82 10,010,200.00 10,000,000.00 10,000,000.00 9,999,629.90 5,000,000.00 4,998,690.00 5,000,000.00 5,000,000.00 5,000,000.00 4,999,350.00 4,999,355.00 4,997,191.10 5,000,250.00 2,001,460.00 9,999,700.00 4,997,372.74 5,000,000.00 5,000,000.00 5,000,000.00 4,998,800.00 5,000,000.00 5,000,000.00 15,000,000.00 4,998,550.00 4,998,550.00 100 537000 100.220000 100.798000 100.016000 101.512000 103.085000 100.778000 102.048000 100.697000 100.499000 101.134000 100.199000 100.273000 100.064000 100.064000 100.064000 100.003000 100.064000 100.002000 100.001000 100.002000 100.262000 100.002000 100.089000 100.089000 100.089000 100.003000 100.089000 100.089000 100.089000 100.072000 100.087000 100.081000 100.060000 100.116000 100.008000 100.135000 100.107000 100.135000 100.008000 100.123000 100.008000 100.008000 100.123000 100099000 100.099000 100.008000 100.008000 100.123000 100.008000 100.123000 100.004000 100.005000 100.002000 100.064000 100.099000 100.005000 100.144000 100.008000 100.062000 100.008000 100.008000 100.1]]000 100.006000 100.135000 100.100000 100.006000 100.006000 100.030000 100.183000 100.041000 100.042000 100.002000 100.000000 99.996000 99.996000 100.041000 99.9%000 100.019000 99.996000 100.042000 99.996000 100.042000 100.043000 100.041000 99.996000 100.348000 100.D36000 100.004000 100.004000 5.026.850.00 10,022,00000 10,079,800.00 15,002,400.00 5,075,600.00 5,154,250.00 5,038,900.00 5,102,400.00 7,552,275.00 5,024,950.00 10,113,400.00 10,019,900.00 10,027,300.00 5,003,200 00 20,012,800.00 7,754,960.00 20,000,600.00 10,006,400.00 15,000,300.00 2,800,028.00 5,000,100.00 5,013,100.00 20,000,400.00 10,008,900.00 10,008,900.00 15,013,350.00 5,000,150.00 15,013,350.00 10,008,900.00 5,004,450.00 15,010,800.00 15,013,050.00 15,012,150.00 10,006,000.00 15,017,400.00 25,002,000.00 10,013,500.00 10,010,700.00 10,013,500.00 10,000,800.00 10,012,300.00 10,000,800.00 5,000,400.00 10,012,300.00 15,014,850.00 15,014,850.00 10,000,800.00 10,000,800.00 15,018,450.00 15,001,200.00 8,009,840.00 10,000,400.00 10,000,500.00 10,000,200.00 10,361,627.20 5,004,950.00 25,001,250.00 10,014,400.00 10,000,800 00 10,006,200.00 5,000,400.00 5,000,400.00 10,011 '1 00.00 10,000,600.00 10,098,614.75 10,010,000 00 10,000,600.00 10,000,600.00 10,003,000.00 5,009,150.00 5,002,050.00 5,002,100.00 5,000,100.00 5,000,000.00 4,999,800.00 4,999,800.00 5,002,050.00 4,999,800.00 2,000,380.00 9,999,600.00 5,002,100.00 4,999,800.00 5,002,100.00 5,002,150.00 5,002,050.00 4,999,800.00 5,017,400.00 15,005,400.00 5,000,200.00 5,000,200.00 25,401.39 45.500.00 97,800.00 2,400.00 (15,725.00) 14,050.00 38,900.00 102,400.00 52,275.00 16,100.00 113,400.00 19,900.00 41,200.00 (5,600.00) (3,066.20) (1,674.00) 6,400.00 (1,470.00) 300.00 28.00 270.00 15,155.45 3,000.00 9,400.00 9,400.00 13,350.00 300.00 13,350.00 8,900.00 4,450.00 10,800.00 13,050.00 12,150.00 11,700.00 17,400.00 12,575.00 13,500.00 10,700.00 13,500.00 4,440.66 12,300.00 3,900.00 600.00 9,311.40 13,468.20 13,500.00 2,800.00 800.00 6,900.00 1,950.00 6,320.00 1,200.00 800.00 1,031.90 (13,772.15) 3,500.00 1,250.00 8,500.00 800.00 4,800.00 70.00 70.00 11,100.00 930.00 9,803.93 (200.00) 600.00 600.00 3,370.10 9,150.00 3,360.00 2,100.00 100.00 45000 445.00 4,858.90 (450.00) (1,080.00) (100.00) 4,727.26 (200.00) 2,100.00 2,150.00 3,250.00 (200.00) 17,400.00 5,400.00 1,650.00 1,650.00 .825 .735 1.229 2.335 2.688 1.428 .981 1.624 .868 .912 1.748 .664 .913 .331 .331 .331 .066 .331 .066 .008 .104 1.158 .126 .640 .640 .640 .164 .640 .640 .640 .659 .626 .673 .601 .664 .282 .773 .717 .m .282 .723 .282 .282 .723 .665 .665 .282 .282 .723 .282 .723 .202 .243 .224 .331 .665 .263 .723 .260 .626 .260 .260 .742 .301 .773 590 .301 .301 532 1.325 .832 .846 .391 .339 .353 .358 .832 .358 1.063 .377 .845 .358 .846 .857 .832 .367 2.619 .601 .413 .377 2.715 1.452 .989 1.655 .874 .910 1.767 .663 .910 .332 .332 .332 .066 .332 .066 .008 .104 1.164 .126 .638 .638 .638 .164 .638 .638 .638 .658 .625 .674 .600 .663 .282 .773 .718 .773 .282 .723 .282 • .282 .282 .723 .282 .723 .203 .244 .225 .332 .663 .263 .723 .260 .625 .260 .260 .742 .301 .773 .589 .301 .301 .532 1.332 .830 .847 .392 .340 .353 .359 .830 .359 1.068 .378 .847 .359 .847 .858 .830 2 •. 3 .4 .378 10 Month End Portfolio Holdings Maturity I\fatunty Par Book Market l\tfarket Unrealized Modified Years To CUSIP Description Date Coupon To Mat Value Value Pnce Value Gain/Loss Duration Maturity 313378ED9 • 783Dl 78H79 76ZQ1 313378ED9 313378JN2 313378JN2 313376ZQ1 313376YC3 313378LW9 313378FY2 313376TZ8 313378BF7 313378JN2 313378TF8 313378TT8 313378U58 313376XWO 313376DE2 313378K)9 313378X30 313378YL9 313378YN5 313378YX3 313378LH2 313378ZU8 313378XS5 313376TZ8 313379A90 313379A66 313379A66 313379A82 313379A82 3l3379A82 313379A82 313379AK5 31337%L8 313376D36 313378F71 313378BT7 3133796L8 313379BZ1 313379BZ1 •;~~ 379G37 313379FL8 313379JJ9 313379JD2 313379PX1 FHLB 1.5Yr FHLB 2YrNr FHLB1.5Yr FHLB 3Y, FHLB 1.5Yr FHLB 1Yr FHLB 1Yr FHLB 3Yr FHLB ll'r FHLB l.5Y, FHLB 2.25h FHLB1Y, FHLBIY, FHLB1Yr FHLB1Yr FHLB l.5Yr FHLB 3Yr FHLB 1.3Yr FHLB 1.5Yr FHLB 1h FHLB 1Y, FHLB 1.5Yr FHLB 1YrNr9MoE FHLB 1.5Yr FHLB 1.5Yr FHLB 1Yr FHLB 3YrNc2YrE FHLB 1Yr FHLB 1Yr FHLB 1Y, FHLB 1Yr FHLB 1YrNr9MoE FHLB 1YrNc9MoE FHLB 1YrNc9MoE FHLB 1YrNc9MoE FHLB 2Yr FHLB 1.5Yr FHLB !Yr FHLB9Mo FHLB9Mo FHLB 18Mo FHLB 1Yr FHLB 12Mo FHLB l.5YrNr6MoB FHLB 2Yr FHLB 18Mo FHLB 1Yr FHLB2Yr FHLB 1YrNc6MoE FHLB 1YrNc9MoE FHLB 1Yr 313379QW2 FH LB 1Yr 313379Q85 FHLB 1Yr 313379VF3 FHLB 5YrNc3MoB 3135GOLX9 FHLB 3YrNc6MoB 3135GOLX9 FHLB 3YrNc6MoB 313379YQ6 FHLB 1Yr 313379YR4 FHLB 1Yr 313379YZ6 FHLB 1Yr 313379YZ6 FH LB 1 Yr 3l33803M7 FHLB 1.5YrNc 3133803E5 FHLB 1Yr 3l33803E5 FHLB lYr 313380)U2 FHLB 5YrNc3MoB 313380LS4 FHLB 1Yr 313380HF7 FHLB 2YrNc6MoB 3l3380Fjl FHLB l.75YrNc9MoB 313380848 FHLB 1Yr 313380F44 FHLB 2.5YrNc6MoB 313380HU4 FHLB 1Yr 3l3378LH2 FHLB 1Yr 31338!JQX8 FH LB 9Mo ,· <~'§,\;;;~( -<it' FFCB DISC NOTES 313313809 FFCB DISC NOTE 313313BA5 3l33l3BX5 313313BX5 313313CQ9 313313CQ9 3l3313CH9 313313CQ9 313313LA4 FFCB DISC NOTE FFCB DISC NOTE FFCB DISC NOTE FFCB DISC NOTE FFCB DISC NOTE FFCB DISC NOTE FFCB DISC NOTE FFCB DISC NOTE ., II I .. 0 1 '~;J(I( 1 ~: .. ,;>:' .. ;}jJilff:.i FFCBBONDS 3133J)QVO FFCB 3Yr • 1)Y56 FFCB 2Yr Jj6A6 FFCB 3Yr Jj6A6 FFCB 3Yr 3133Jj6A6 FFCB 3Yr 09/09/2013 02/13/2014 09/09/2013 03/13/2015 09/09/2013 03/05/2013 03/05/2013 03/]3/2015 02/06/2013 09/12/2013 05/30/2014 02/27/2013 02/28/2013 03/05/2013 03/27/2013 10/09/2013 05/04/2015 05/10/2013 05/28/2013 04/05/2013 04/16/2013 10/11/2013 05/07/2013 10/15/2013 09/16/2013 04/18/2013 04/30/2015 02/27/2013 05/03/2013 05/03/2013 05/03/2013 05/22/2013 05/22/2013 05/22/2013 05/22/2013 04/30/2014 12/03/2013 05/16/2013 02/22/2013 02/15/2013 12/03/2013 05/17/2013 05/17/2013 11/26/2013 05/19/2014 11/15/2013 05/17/2013 05/19/2014 06/14/2013 06/13/2013 05/29/2013 06/14/2013 06/04/2013 07/05/2017 06/26/2015 06/26/2015 07/01/2013 07/02/2013 07/03/2013 07/03/2013 01/23/2014 07/17/2013 07/17/2013 09/12/2017 08/28/2013 08/28/2014 05/28/2014 07/25/2013 02/27/2015 08/20/2013 09/16/2013 06/17/2013 OJ /28/2013 01/25/2013 02/15/2013 02/]5/2013 03/04/2013 03/04/2013 02/25/2013 03/04/2013 08/29/2013 06/03/2013 ll/02/2012 12/23/2013 12/23/2013 12/23/2013 .310 .300 .300 .375 .310 .125 .125 .375 150 .280 .375 170 .180 .125 250 .400 .700 .200 .310 .230 .250 .350 .280 .350 280 .230 .650 .170 .230 .220 .220 .250 .250 .250 .250 .340 .290 .300 .190 .190 .290 .220 .220 .330 .350 .300 .230 .350 .290 .280 .240 .240 .230 .850 .700 .700 .250 .250 .270 .270 .300 .250 .250 .750 .230 .380 .300 .125 .400 .125 .280 .180 .310 .379 300 .551 .291 .228 .213 .689 .250 .348 .468 .240 .240 .254 .258 .400 .700 .268 .262 .243 .250 .350 .280 .350 .310 .253 .650 .204 .230 .233 .233 .250 .250 .250 .250 .340 .290 .233 .190 .204 .300 .233 .233 .330 .350 .302 .235 .350 .290 280 .240 .240 .233 .850 .700 .700 .284 .258 .270 .270 .316 .250 .250 .750 .230 .385 .300 202 .404 .197 .213 .182 .140 .140 .200 .200 .180 .180 .190 .190 .190 .190 .190 190 .180 .180 .190 .190 .190 .190 1600 .400 1.300 1.300 1.300 .752 .540 1.300 1.300 JJ84 RIVERISIDE COUNTY 1REASURER-TAX COLLECTOR 10,000,000.00 5,000,000.00 5,000,000.00 5,000,000.00 5,000,000.00 5,000,000.00 5,000,000.00 5,000,000.00 10,000,000.00 5,000,00000 5,000,000.00 9,900,000.00 10,000,000.00 5,000,000.00 10,000,000.00 15,000,000.00 15,000,000.00 20,000,000.00 14,500,000.00 5,000,000.00 5,000,000.00 5,000,000.00 10,000,000.00 5,000,000.00 5,000,000.00 5,000,000.00 5,000,000.00 10,000,000 00 4,992,300.00 5,000,000.00 4,973,550.00 5,001,450.00 4,994,955.00 4,995,700.00 4,953,525.00 9,991,100.00 4,994,950.00 4,990,014.15 9,893,565.00 9,994,400.00 4,993,850.00 9,999,164.00 J 5,000,000.00 15,000,000.00 19,985,000.00 14,507,830.00 4,999,350.00 5,000,000.00 5,000,000.00 10,000,000.00 5,000,000.00 4, 997,850.00 4, 998,850.00 5,000,000.00 7,000,000.00 6,997,970.00 5,000,000.00 5,000,000.00 10,000,000.00 9,998,680.00 5,000,000.00 4,999,340.00 5,000,000.00 5,000,000.00 5,000,000.00 5,000,000.00 10,000,000.00 10,000,000.00 5,000,000.00 5,000,000.00 5,000,000.00 5,000,000.00 10,000,000.00 10,000,000.00 10,000,000.00 10,006,980.00 J 5,000,000.00 J 5,000,000.00 7,500,000.00 7,499,158.95 5,000,000.00 4,999,250.00 20,000,000.00 19,997,400.00 5,000,000.00 4,999,345.00 5,000,000.00 5,000,000.00 5,000,000.00 5,000,000.00 5,000,000.00 4,999,850.00 15,000,000.00 14,999,250.00 5,000,000.00 5,000,000.00 30,000,000.00 30,000,000.00 20,000,000.00 20,000,000.00 10,000,000.00 10,000,000.00 10,000,000.00 10,000,000.00 5,000,000.00 4,999,850.00 10,000,000.00 J 0,000,000.00 5,000,000.00 5,000,000.00 5,000,000.00 5,000,000.00 10,000,000.00 9,996,620.00 5,000,000.00 4,999,580.00 10,000,000.00 10,000,000.00 5,000,000.00 5,000,000.00 25,000,000.00 24,994,000.00 5,000,000.00 5,000,000.00 5,000,000.00 5,000,000.00 10,000,000.00 10,000,000.00 10,000,000.00 10,000,000.00 10,000,000.00 9,999,000.00 10,000,000.00 10,000,000.00 10,000,000.00 9,992,980.00 7,750,000.00 7,749,225.00 10,000,000.00 9,993,130.00 10,000,000.00 10,006,780.00 5,000,000.00 4,999,925.00 24,964,805.56 49,913,611.11 24,960,500.00 49,917,930.56 24,956,854.17 24,956,854.17 24,960,000.00 100100000 100.082000 100.090000 100.077000 100.100000 99.977000 99.977000 100.077000 99.990000 100.071000 100.191000 99.996000 100.000000 99.977000 100.039000 100.191000 100.872000 100.000000 100.072000 100.027000 100.034000 100.141000 100.017000 100.141000 100.071000 100.022000 100.552000 99.9%000 100.018000 100.012000 100.012000 100.028000 100.028000 100.028000 100.028000 100.134000 100.077000 100.062000 100.004000 100.004000 100.077000 100.012000 100.012000 100.019000 100.149000 100.089000 100.019000 100.149000 lOO.Dl3000 100.026000 100.026000 100.028000 100.020000 100.007000 100.105000 100.105000 100.037000 100.038000 100.053000 100.053000 100.058000 100.040000 100.040000 99.886000 100.027000 100.045000 100.048000 99.939000 99.974000 99.934000 100071000 99.986000 99.983000 99.984000 99.973000 99.973000 99.957000 99.957000 99.971000 10,010,000.00 10,000.00 5,004,100.00 J 1,800.00 5,004,500.00 4,500.00 5,003,850.00 30,300.00 5,005,000.00 3,550.00 4,998,850.00 3,895.00 4,998,850.00 3,150.00 5,003,850.00 50,325.00 9,999,000.00 7,900.00 5,003,550.00 8,600.00 5,009,550.00 J 9,535.85 9,899,604.00 6,039.00 10,000,000.00 5,600.00 4,998,850.00 5,000.00 10,003,900.00 4,736.00 15,028,650.00 28,650.00 15,130,800.00 130,800.00 20,000,000.00 15,000.00 14,510,440.00 2,610.00 5,001,350.00 2,000.00 5,001,700.00 1,700.00 5,007,050.00 7,050.00 10,001,700.00 ],700.00 5,007,050.00 7,050.00 5,003,550.00 5,700.00 5,001,100.00 2,250.00 5,027,600.00 27,600.00 6,999,720.00 1,750.00 5,000,900.00 900.00 10,001,200.00 2,520.00 5,000,600.00 ],260.00 5,001,400.00 1,400.00 5,001,40000 1,400.00 10,002,800.00 2,800.00 5,001,400.00 1,400.00 5,006,700.00 6,700.00 10,007,700.00 7,700.00 10,006,200.00 (780.00) 15,000,600.00 600.00 7,500,300.00 ],141.05 5,003,850.00 4,600.00 20,002,400.00 5,000.00 5,000,600.00 ],255.00 5,000,950.00 950.00 5,007,450.00 7,450.00 5,004,450.00 4,600.00 15,002,850.00 3,600.00 5,007,450.00 7,450.00 30,003,900.00 3,900.00 20,005,200.00 5,200.00 10,002,600.00 2,600.00 10,002,800.00 2,800.00 5,001,000.00 ],150.00 10,000,700.00 700.00 5,005,250.00 5,250.00 5,005,250.00 5,250.00 10,003,700.00 7,080.00 5,001,900.00 2,320.00 10,005,300.00 5,300.00 5,002,650.00 2,650.00 25,014,500.00 20,500.00 5,002,000.00 2,000.00 5,002,000.00 2,000.00 9,988,600.00 (JJ,400.00) 10,002,700.00 2,700.00 10,004,500.00 5,500.00 10,004,800.00 4,800.00 9,993,900.00 920.00 7,747,985.00 (1,240.00) 9,993,400.00 270.00 10,007,100.00 320.00 4,999,300.00 (625.00) .939 1.365 .940 2.437 .940 .427 .427 2.435 .353 .948 1.657 .410 .413 .427 .487 1.020 2.559 .610 .659 513 543 1.026 .601 1.037 .959 549 2.551 .410 590 590 590 .643 .643 .643 .643 1.576 L172 .626 .397 .377 JJ72 .629 .629 JJ53 1.628 JJ2J .629 1.628 .704 .701 .662 .704 .676 4.650 2.703 2.703 .751 .754 .757 .757 1.310 .796 .796 4.849 .915 1.907 1.655 .818 2.394 .888 .959 .713 .942 1.373 .942 2.449 942 .427 427 2.449 .353 .951 1.663 .411 .414 .427 .488 1025 2.592 .608 .658 .512 .542 1.030 .600 1.041 .962 548 2.581 .411 .589 589 .589 .641 .641 .641 .641 1.581 JJ75 .625 .397 .378 1.175 .627 .627 1.156 1.633 1.126 .627 1.633 .704 .701 .660 .704 .677 4.764 2.737 2.737 .751 .753 .756 .756 1.315 .795 .795 4.953 .910 1.910 1658 .816 2.41] .888 .962 .712 24,995,750.00 30,944.44 .328 .329 49,992,000.00 78,388.89 .320 .321 24,993,250.00 32,750.00 .377 .378 49,986,500.00 68,569.44 .377 .378 24,989,250.00 32,395.83 .424 .425 24,989,250.00 32,395.83 .424 .425 24,992,750.00 32,750.00 .404 .405 25,000,000.00 50,000,000.00 25,000,000.00 50,000,000.00 25,000,000.00 25,000,000.00 25,000,000.00 50,000,000.00 10,000,000.00 49,922,944.44 99.957000 49,978,500.00 55,555.56 .424 .425 10,000,000.00 10,000,000.00 5,000,000.00 5,000,000.00 5,000,000.00 109 9,981,105.56 99.862000 9,986,200.00 5,094.44 .910 .912 10,211,890.00 9,972,900.00 5,000,000.00 5,000,000.00 5,01 5,550.00 100.933000 100.021000 101.294000 101.294000 101.294000 10,093,300.00 10,002,100.00 5,064,700.00 5,064,700.00 5,064,700.00 (J J 8,590.00) 29,200.00 64,700.00 64,700.00 49,150.00 .669 .090 1213 1213 1214 .674 .090 1.230 1.230 1.230 11 Month End Portfolio Holdings Maturity Maturity Par Book Market l\farket Unrealized Modified Years To CUSIP Description Date Coupon To Mat Value Ya1ue Price Value GainfLoss Uuration Maturity 31331 KET3 FFCB 2.5Yr 31331 KHV5 FFCB 5Yr 31331KQU7 FFCB1.5Yr 31331 KPD6 FFCB 2.5Yr 31331KMM9 FFCB1.5Yr 31331KMM9 FFCB 1.5Yr 31331KZ)2 FFCB2Yr 31331KB82 FFCB2Yr 31331KZK9 FFCB1.25Yr 31331KK74 FFCB3YrNc1YrA 31331 KK74 FFCB 3YrNc1YrA 31331 K5K2 FFCB 2Yr 3133EACJ5 FFCB 1.5YrNc3MoE 3133EADY1 FFCB 2YrNc1YrA 3133EAHP6 FFCB3Yr 3133EALT3 FFCB 1.5Yr 3J33EALN6 FFCB 1 Yr 3133EALN6 FFCB 1Yr 3133EACJ5 FFCB 1.5YrNc3MoA 3133EACJ5 FFCB 1.5YrNc3MoA 3133EAKT4 FFCB 1.75Yr 3133EANJ3 FFCB 3Yr 3133EAPK8 FFCB 16MoNc3MoA 3133EASH2 FFCB 1Yr 3133EATQ1 FFCB 1Yr 31315PVUO 3J315PVUO 31315PVUO 31315PSH3 677521LG9 FARMER MAC GTD FARMER MAC GTD FARMER MAC GTD FARMER MAC GTD FARMER MAC GTD 677521LH7 OHIOSTATEGO 68608UNXO OREGON STATE 68608UNZ5 OREGON STATE 56052AXC5 MAIN ST GO 5946107P6 20772)£00 20772)EE8 20772)EC2 56052AXC5 56052AXE1 MICHIGANSTGO CONNECTICUT ST CONNECTICUT ST CONNECTICUT ST MAINSTGO ~'-Yu"'-"'"···~/"' <»'•'-'-~ COMMPAPER 36959H LE5 GE CAPITAL CORP 36959HK30 GECAPITALCORP 36959HKH9 GE CAPITAL CORP 09/23/2013 04/20/2016 01/07/2013 11/20/2013 12/03/2012 12/03/2012 09/23/2013 10/03/2013 11/23/2012 11/07/2014 11/07/2014 01/03/2014 08/07/2013 02/21/2014 03/16/2015 11/18/2013 04/]6/2013 04j16/2013 08/07/2013 08/07/2013 12/23/2013 05/01/2015 09/09/2013 06/04/2013 06/11/2013 05/01/2013 05/01/2014 11/01/2013 05/01/2013 06/01/2013 05/15/2013 04/15/2014 04/15/2015 04/15/2013 06/01/2013 06 01 2013 .980 .289 .400 .625 .350 .350 .350 .350 .240 .850 .850 .400 .180 .330 .520 .300 .220 .220 .180 .180 .300 .500 .270 .220 .220 1.029 .303 .400 .700 .376 .340 .400 .400 .254 .850 .850 .420 .240 .380 .598 .300 .228 .253 .302 .271 .302 .520 .270 .233 .228 10,000,000.00 10,000,000.00 5,000,000.00 5,000,000.00 10,000,000.00 5,000,000.00 10,000,000.00 5,000,000.00 5,000,000.00 5,000,000.00 5,000,000.00 6,000,000.00 5,000,000.00 5,000,000.00 5,000,000.00 5,000,000.00 5,000,000.00 5,000,000.00 10,000,000.00 5,000,000.00 10,000,000.00 5,000,000.00 5,000,000.00 5,000,000.00 5,000,000.00 9, 988,000.00 9,995,000.00 5,000,000.00 4,991,100.00 9,996,600.00 5,000,650.00 9,990,100.00 4,995,050.00 4,999,200.00 5,000,000.00 5,000,000.00 5,997,600.00 4, 995,500.00 4,995,000.00 4,988,430.00 5,000,000.00 4,999,600.00 4,998,337.45 9,984,000.00 4,994,100.00 9,999,600.00 4, 997,000.00 5,000,000.00 4, 999,350.00 4,999,600.00 100.744000 100.016000 100.064000 100.443000 100.033000 100.033000 100.129000 100.129000 100.012000 100.063000 100.063000 100.192000 99.973000 100.047000 100.378000 100.075000 100.012000 100.012000 99.973000 99.973000 100.069000 100.316000 100.001000 100.007000 100.007000 10,074,400.00 10,001,600.00 5,003,200.00 5,022,150.00 10,003,300.00 5,001,650.00 10,012,900.00 5,006,450.00 5,000,600.00 5,003,150.00 5,003,150.00 6,011,520.00 4,998,650.00 5,002,350.00 5,018,900.00 5,003,750.00 5,000,600.00 5,000,600.00 9,997,300.00 4,998,650.00 10,006,900.00 5,015,800.00 5,000,050.00 5,000,350.00 5,000,350.00 86,400.00 6,600.00 3,200.00 31,050.00 6,700.00 1,000.00 22,800.00 11,400.00 1,400.00 3,150.00 3,150.00 13,920.00 3,150.00 7,350.00 30,470.00 3,750.00 1,000.00 2,262.55 13,300.00 4,550.00 7,300.00 18,800.00 50.00 1,000.00 750.00 .973 3.536 .271 1.130 .175 .175 .978 1.004 .148 2.073 2.073 1.253 .851 1.387 2.441 1.131 .543 .543 .851 .851 1.227 2.561 .940 .676 .6% .175 .175 .981 1.008 .148 2.104 2.104 1.260 .852 1.395 2.458 1.134 .542 .542 .852 .852 1.230 2.584 .942 .677 .6% .760 .760 5,000,000.00 5,000,000.00 100.206000 5,010,300.00 10,300.00 .607 .608 .760 .760 5,000,000.00 5,000,000.00 100.206000 5,010,300.00 10,300.00 .607 .608 .760 .750 12,500,000.00 12,502,375.00 100.206000 12,525,750.00 23,375.00 .607 .608 .400 .400 15,000,000.00 15,000,000.00 100.110000 15,016,500.00 16,500.00 .567 .567 .550 .587 10,000,000.00 9,989,000.00 100.162000 10,016,200.00 27,200.00 2.727 2.753 .740 1.190 .480 .380 2.000 .450 .448 .672 .250 2.000 1.000 .320 .170 .170 .600 5 000 000.00 5 000 000.00 100.157000 5 007 850.00 7 850.00 3.866 3.923 ?~kA'·'-•s~~~oo>.;D:;cf/; .!>.m4 .. -HA~il!i!!l'.~'''''.~.SOifi2~~~'tl3Zl$ .740 5,140,000.00 5,140,000.00 1.190 2,000,000.00 2,000,000.00 .480 3,595,000.00 3,595,000.00 .380 6,565,000.00 6,565,000.00 .401 1,500,000.00 1,526,895.00 .450 4,285,000.00 4,285,000.00 .448 2,000,000.00 2,000,000.00 .672 2,000,000.00 2,000,000.00 .284 8,300,000.00 8,297,261.00 .370 3,500,000.00 3,556,980.00 .390 6 630000.00 6 669 647.40 100.000000 100.000000 100.000000 100.000000 101.793000 100.000000 100.000000 100.000000 99.%7000 -~7o-,y,;· \:£:, ~;llOili'lij}j; .·• -~4&~Jli!,~;f ::':!0' .321 .170 .170 99.971889 99.998722 5,140,000.00 2,000,000.00 3,595,000.00 6,565,000.00 1,526,895.00 4,285,000.00 .582 .584 1.559 1.584 1.082 1.088 .584 .584 .663 .668 .622 .622 2,000,000.00 1.532 1.540 2,000,000.00 2.509 2 •. 8,297,261.00 .540 3,556,980.00 .663 6 669 647.40 .666 .6 ::•,,4 •. ~· ''J[:j,4Jl,J; :): \::.: !%\tY<~~-$\{~~ .123 .008 .123 .008 .047 • RIVERISIDE COUNTY TREASURER-TAX COLLECTOR 110 12 • • Full Compliance The Treasurer's Pooled Investment Fund was m FULL COMPLIANCE with the Treasurer's Statement of Investment Policy. The County's Investment Policy is more restrictive than the California Government Code. This policy is reviewed annually by the County's Investment Oversight Committee and approved by the County Board of Supervisors. - Investment Category MUNICIPAL BONDS· (MUNI) U.S. TREASURIES LOCAL AGENCY OBLIGATIONS. (LAO). FEDERAL AGENCIES COMMERCIAL PAPER (CP) CERTIFICATE & TIME DEPOSITS (NCD & TCD) 5 YEARS NO LIMIT NA 5 YEAR$ NO LIMIT NA NO LIMIT AAA DAYS 40% A1/P1 5 YEARS 30% NA Quality Maximum Authorized S&P / Maturity %Limit Moody's 3YEARS 5 YEARS 3 YEARS 5 YEARS 270DA:YS . 1 YEAR 15% 100% 2;5% 100% 40% 25% Combined NA A1/P1/F1 REPURCHASE AGREEMENTS. (REPO) :'lYEARS• '!NOLIMlT . .NA~;;. 45 DA'YS :~.,40%:max";'0~Al~Bll:~ <2s% in term·· REVERSE REPOS MEDIUM TERM NOTES (MTNO) 92 DAYS 5 YEARS CALTRUSTSHORT NA TERM FUND MONEY MARKET 60 DAYS (l) MUTUAL FUNDS (MMF) LOCALAGENCY NA INVESTMENT FUND (LA IF) CASH/DEPOSIT. ACCOUNT NA 20% 30% NA 20% NA NA 60DAYS A 3 YEARS .. . repoover7 10% .20% NA DAILY 1.0% LIQUIDITY AAA/Aaa DAILY 20% (2) LIQUIDITY NA DAILY Max $50 LIQUIDITY million NA 1 Mutual Funds maturihJ may be interpreted as weighted average maturity not exceeding 60 days . NA AAffta2j~ AJ\ ·' NA AAAby2, . Of3 .: RATINGS NA o.io~ O.Dl% • 2 Or must have an investment advisor with not less than 5 years experience and with assets under management of $500,000,000. THIS COMPLETES THE REPORT REQUIREMENTS OF CALIFORNIA GOVERNMENT CODE 53646 RIVERSIDE COUNTY TREASURER-TAX COLLECTOR 111 13 • • • RIVERSIDE COUNTY TRANSPORTATION COMMISSION DATE: December 1 2, 201 2 TO: Riverside County Transportation Commission FROM: Western Riverside County Programs and Projects Committee William Von Klug, Right of Way Manager THROUGH: Anne Mayer, Executive Director SUBJECT: Revised State Route 91 Corridor Improvement Project Relocation Plan WESTERN RIVERSIDE COUNTY PROGRAMS AND PROJECTS COMMITTEE AND STAFF RECOMMENDATION: This item is for the Commission to adopt the State Route 91 Corridor Improvement Project Relocation Plan (Relocation Plan). BACKGROUND INFORMATION: As part of the right of way acquisition phase for the State Route 91 Corridor Improvement Project (SR-91 CIP), a relocatio.n plan has been prepared in connection with the right of way activities to commence upon completion of the environmental phase. The Relocation Plan provides the Commission with information regarding the potential impact of the project on the affected residential and non-residential occupants, and responds to each as to their eligibility for benefits. State statutes require that relocation assistance programs provide for the fair, uniform, and equitable treatment of all affected persons. The regulations further require that all eligible persons be adequately informed of the assistance, benefits, policies, practices and procedures, including grievance procedures of the relocation assistance program. The Relocation Plan sets forth policies and procedures necessary to conform to statues and regulations established by California Government Code Section 7260 and California Code of Regulations Title 25, Division 1, Chapter 6 (Guidelines); the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970, as amended (Uniform Act); the implementing federal relocation and acquisition guidelines found at 49 CFR Part 24; and the Commission's adopted right of way policies and procedures . 112 Agenda Item 7H The Relocation Plan includes a description of the project's location and specific • sites, an assessment of the relocation needs of the occupants subject to displacement, a study of available replacement housing sites in close proximity to the project, and an overview of the proposed relocation assistance program. Assessment of Relocation Needs The proposed project would impact 1 31 residential dwellings, 61 non-residential entities, and 48 owners of rental property. In addition, there will be some storage units impacted by the proposed project but the number of units is unknown at this time. Attempts were made. to interview all residential and non-residential entities. Some did not respond to requests for an interview. Individuals from 92 percent of the residential dwelling units were interviewed, and representatives from 79 percent of the non-residential occupants were interviewed. No eligible person shall be required to move from their dwelling unless comparable replacement dwellings are available to them. Housing site availability is summarized in the Relocation Plan. Based on the replacement needs of the residential occupants, survey results indicate that there is a sufficient availability of housing units to provide comparable replacement housing. Survey results also • indicate that there are sufficient suitable replacement units for the non-residential entities. Relocation Assistance Program The Relocation Plan provides a comprehensive overview of the Commission's Relocation Assistance Program, which follows applicable state and federal regulations. Components of the program include relocation advisory services, an explanation of benefits available for residential and commercial occupants and for both owner occupie<;J and tenant-occupied units, and general information on payment of relocation benefits. Specific eligibility requirements and benefit plans will be detailed on an individual basis with the displacees. On October 22, 201 2, the original Relocation Plan was brought to Committee that estimated the relocation benefit payments in the amount of $4,510,000. Subsequent to Committee approval, staff learned that this amount was incorrect and should be $11,220,000 including a 10% contingency. While this estimate did not change the context of the Relocation Plan, staff felt it was prudent to recirculate for another 30-day public comment period. Pursuant to California Code of Regulations, Section 6038, a general notice must be • provided to each occupant of affected properties 30 days prior to submission to the 113 Agenda Item 7H • • • Commission for adoption. Another notice with the revised payment estimates will be issued to those occupants to comply with Section 6038. Financial Information In Fiscal Year Budget: Yes Year: FY 2012/13 Amount: $ 5,000,000 N/A FY 2013/14+ $ 6,220,000 Source of Funds: 12009 Western County Measure A Budget Adjustment: I No and debt proceeds N/A GL!Project Accounting No.: 003028 81401 262 31 81401 Fiscal Procedures Approved: ~~ I Date: I 11/15/2012 Attachment: State Route 91 Corridor Improvement Project Relocation Plan - Posted on Commission Website 114 Agenda Item 7H Prepared for: Riverside County Transportation Commission Prepared by: Overland, Pacific & Cutler, Inc. 2280 Market Street, Suite 200 Riverside, CA 92501 (951) 683-2353 October 2012 State Route 91 Corridor Improvement Project Updated Relocation Plan for Occupants Updated Relocation Plan for the SR-91 Corridor Improvement Project ii Contents Introduction ........................................................................................................................................................ 1 I. Project Area Description .......................................................................................................................... 4 A. Regional Location ........................................................................................................................... 4 B. Project Location ............................................................................................................................. 4 C. General Demographic and Housing Characteristics ...................................................................... 5 II. Assessment of Relocation Needs ............................................................................................................. 7 A. Survey Methods .............................................................................................................................. 7 B. Field Survey Data – Residential ....................................................................................................... 7 1. Housing Mix .............................................................................................................................. 7 2. Project Area Rents ................................................................................................................... 8 3. Occupancy/Overcrowding ....................................................................................................... 9 4. Replacement Housing Needs ................................................................................................. 10 5. Income ...................................................................................................................................... 11 6. Ethnicity/Language .................................................................................................................. 11 7. Senior/Disabled Households .................................................................................................. 12 8. Preferred Relocation Areas .................................................................................................... 12 C. Field Survey Data – Nonresidential............................................................................................... 12 III. Relocation Resources ............................................................................................................................. 15 A. Methodology ................................................................................................................................. 15 B. Replacement Housing/Commercial Site Availability .................................................................... 15 1. Residential Rental Housing .................................................................................................... 15 2. Mobile Homes, Single Family Residences, and Duplexes/Triplexes/Fourplexes for Sale Housing ............................................................................................................................ 16 3. Commercial Space Availability ............................................................................................... 17 4. Loss of Goodwill ...................................................................................................................... 18 5. Summary ................................................................................................................................. 18 C. Related Issues ................................................................................................................................ 19 1. Concurrent Residential Displacement ................................................................................... 19 2. Language ................................................................................................................................. 19 3. Temporary Relocation ............................................................................................................ 19 IV. The Relocation Program ........................................................................................................................ 20 A. Program Assurances, Standards and Objectives ........................................................................ 20 B. Relocation Advisory Assistance .................................................................................................... 21 C. Relocation Benefits – Residential ................................................................................................. 22 1. Residential Moving Expense Payments ................................................................................. 22 2. Rental Assistance to Tenants/Owner-Occupants Who Choose to Rent .............................. 23 3. Down payment Assistance to Tenants/90 Day Owner-Occupants Who Choose to Purchase .................................................................................................................................. 25 4. Payments to 180 Day Residential Owner-Occupants ............................................................ 25 5. Payments to Mobile Home Owners ...................................................................................... 26 6. Payments to Non-tenured Residential Tenants .................................................................... 27 D. Determinations of Comparable Housing ..................................................................................... 27 E. Relocation Benefits – Commercial Tenants, Non-profit Organizations and Offsite Owners of Rental Income Property ............................................................................................ 28 Updated Relocation Plan for the SR-91 Corridor Improvement Project iii 1. Payment for Actual Reasonable and Necessary Moving and Related Expenses ............... 28 2. Self-Moves .............................................................................................................................. 30 3. A Fixed Payment in Lieu of a Payment for Actual Reasonable Moving and Related Expenses ................................................................................................................................ 30 F. General Information Regarding the Payment of Relocation Benefits ....................................... 31 G. Last Resort Housing ...................................................................................................................... 32 H. Immigration Status ........................................................................................................................ 32 I. Relocation Tax Consequences ...................................................................................................... 33 V. Administrative Provisions ...................................................................................................................... 34 A. Holdover Tenancies ...................................................................................................................... 34 B. Notices .......................................................................................................................................... 34 C. Privacy of Records ......................................................................................................................... 35 D. Grievance Procedures ................................................................................................................... 35 E. Eviction Policy ............................................................................................................................... 36 F. Citizen Participation ..................................................................................................................... 36 G. Projected Dates of Displacement ................................................................................................ 36 H. Estimated Relocation Costs ......................................................................................................... 36 Updated Relocation Plan for the SR-91 Corridor Improvement Project iv List of Tables Table 1: 2010 Census Population – City of Corona ........................................................................................ 5 Table 2: 2010 Census Housing Units – City of Corona .................................................................................. 6 Table 3: Proposed Project Area Housing – Dwelling Bedroom Sizes (58 respondents) ............................ 8 Table 4: Proposed Project Area Housing – Mobile Home Dwelling Bedroom Sizes (62 respondents) ............................................................................................................................. 8 Table 5: Proposed Project Area Tenant Rents (33 respondents)................................................................ 9 Table 6: Current Household Size Occupants (120 households) ................................................................... 9 Table 7: Mobile Home Replacement Housing Needs (17 tenants + 45 owners) ....................................... 10 Table 8: Single Family Residences (SFRs) Replacement Housing Needs (15 tenants + 11 owners) .......... 10 Table 9: Apartments, Duplexes, Triplexes and Fourplexes – Replacement Housing Needs (27 tenants + 5 owners) ................................................................................................................... 11 Table 10: Income Levels of Residential Housing (101 respondents) ............................................................. 11 Table 11: Ethnicity of Proposed Project Area Households (116 respondents) ............................................. 11 Table 12: Non-Residential Uses ...................................................................................................................... 12 Table 13: Non-Occupant Owners Leasing Space to Others ......................................................................... 14 Table 14: Availability and Cost of Replacement Rental Housing (conventional) ........................................ 16 Table 15: Availability and Cost of Replacement Rental Housing (Mobile Homes) ..................................... 16 Table 16: Availability and Cost of Mobile Homes for Sale ............................................................................ 17 Table 17: Availability and Cost of Single-Family Residences, Duplexes, Triplexes, and Fourplexes for Sale .................................................................................................................................................. 17 Table 18: Summary of Available Commercial Space ..................................................................................... 18 Table 19: Schedule of Fixed Moving Payments ............................................................................................ 23 Table 20: Computation of Rental Assistance Payments ............................................................................... 25 List of Figures Figure 1: Relocation Plan Limits .......................................................................................................................... 2 Figure 2: Regional Location ............................................................................................................................... 4 Figure 3: Project Location ................................................................................................................................... 5 Updated Relocation Plan for the SR-91 Corridor Improvement Project v List of Exhibits Exhibit A: Project Aerial Map Exhibit B: Business Interview Form Exhibit C: Residential Interview Form Exhibit D: HUD Income Limits – Riverside County Exhibit E: Mobile Homes for Sale Listing Exhibit F: Homes for Sale Listing Exhibit G: Commercial For Sale Listing Exhibit H: Business Informational Brochure Exhibit I: Residential Informational Brochure Exhibit J: Public Comments And Responses Updated Relocation Plan for the SR-91 Corridor Improvement Project 1 Introduction The Riverside County Transportation Commission (RCTC) has authorized the preparation of a Relocation Plan in connection with the commencement of right-of-way acquisition activities for the proposed State Route 91 (SR-91) Corridor Improvement Project (Project). The proposed Project spans 14 miles on SR-91 from Anaheim and Yorba Linda into Riverside; and 6 miles on Interstate 15 (I-15) from the Hidden Valley Parkway interchange in Corona and Norco to the Cajalco Road interchange in Corona (see Exhibit A, Project Aerial Map). The RCTC, in partnership with the California Department of Transportation (Caltrans), intends to address existing and projected deficiencies regarding mobility, access, goods movement, and freeway capacity within the project segments of SR-91 (between State Route 241 [SR-241] and Pierce Street) and I-15 (between Cajalco Road and Hidden Valley Parkway). The proposed Project currently involves the acquisition of 267 parcels made up of 75 full acquisitions and 192 partial acquisitions. The property acquisition that will take place for the proposed Project will potentially cause the displacement of 131 residential households, consisting of 393 individuals, and 61 business occupants. The needs and characteristics of the displacee population, available relocation resources and the RCTC’s program to provide assistance to each affected residential and business occupant are the general subjects of this Relocation Plan (Plan). SR-91 originates in southern Los Angeles County at the Harbor Freeway (I-110), passes through northern Orange County, and terminates at the State Route 60 (SR-60)/91/Interstate 215 (I-215) interchange in the City and County of Riverside. The existing freeway within the project vicinity was constructed in the mid-1960s, during the same period as most of the interstate highway system in the area. SR-91 is the only significant highway transportation facility connecting Orange County and Riverside County. In addition to its importance as a commuter route, it is heavily used for goods movement from the ports of Los Angeles and Long Beach to inland destinations. The design of major transportation improvements such as the proposed SR-91 CIP is a complex process. As a result, projects of this magnitude often are divided into segments for conceptual design to allow different engineering teams to focus on shorter segments of proposed improve- ments while ensuring that the designs of all the segments are consistent and compatible with each other. For the conceptual design and engineering for the SR-91 CIP Build Alternatives, the proposed Project was divided into three segments. Segment 1 extends on SR-91 from its interchange with SR-241 in Orange County to Smith Avenue in the City of Corona in Riverside County; it also includes an advance signage area extending west from the SR-91/SR-241 interchange to Weir Canyon Road. Advanced signage is signage advising commuters that they are about to enter or exit a toll road. Within the identified advanced signage areas, there will not be any acquisition or relocation activities involved. Segment 2 extends on SR-91 east of Smith Avenue, across I-15, into the City of Riverside, terminating at Pierce Street; it also includes an advance signage area extending east from Pierce Updated Relocation Plan for the SR-91 Corridor Improvement Project 2 Street to Tyler Street. As with Segment 1, there will not be any acquisition or relocation activities within the advanced signage area. Segment 3 extends from the Hidden Valley Parkway interchange in the Cities of Corona and Norco, south to the Cajalco Road interchange in the City of Corona; it also includes advanced signage areas extending north from Hidden Valley Parkway to Fifth Street and south from Cajalco Road to Weirick Road. Figure 1, below, depicts the Relocation Plan limits. Figure 1: Relocation Plan Limits Source: State Route 91 Corridor Improvement Project Environmental Impact Report/Environmental Impact Statement, accessed August 30, 2012. This Plan addresses Segment 1 and a portion of Segment 2 of the proposed Project. Segments 2 and 3 will culminate in the year 2035 and the properties within these segments will be acquired and relocated, if necessary, leading up to that time. Funding for the proposed Project comes from federal and local sources. A federal loan totaling $444 million is expected to comprise approximately one-third of the proposed Project’s $1.3 billion cost. This loan will be repaid with funds collected from toll revenue. Measure A, the half- cent sales tax for transportation improvements in Riverside County, will fund most of the balance of the proposed Project’s cost.1 This Plan conforms to the requirements of the California Relocation Assistance Law, Government Code §7260, et seq. (Law), the Relocation Assistance and Real Property Acquisition Guidelines; California Code of Regulations, Title 25, Division 1, Chapter 6 (Guidelines); the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970, as amended (URA); the implementing federal relocation and acquisition guidelines found at 49 CFR Part 24; and the RCTC’s adopted right-of-way policies and procedures. 1 Riverside County Transportation Commission, State Route 91 Corridor Improvement Project Web Site: http://sr91project.info/funding.php, accessed August 30, 2012. Updated Relocation Plan for the SR-91 Corridor Improvement Project 3 The proposed Project is anticipated to impact two mobile home parks, one of which will be acquired in full. As a result, a report of the impact of the conversion, closure or cessation of use upon the displaced persons is required. This report will be prepared under separate cover in accordance with California Government Code §65863.7 and §65863.8, and California Civil Code §798.56. Implementation of the proposed Project rests with the RCTC, with oversight from the California Department of Transportation (Caltrans) and the Federal Highway Administration (FHWA). Upon completion of this Plan, it will be submitted to the RCTC for approval. This Plan was written by Overland, Pacific & Cutler, Inc. (OPC), a professional consulting firm specializing in public agency acquisition and relocation projects. The Plan is organized in five sections: 1. A description of the proposed Project’s regional location and specific site setting (SECTION I); 2. An assessment of the relocation needs of residential and businesses subject to displacement as a result of the proposed Project (SECTION II); 3. An assessment of available comparable replacement sites for the residential occupant and available commercial replacement sites in proximity to the proposed Project (SECTION III); 4. A review of the relocation assistance program to be offered to the displaced residential and business occupants (SECTION IV); and 5. Necessary administrative provisions (SECTION V). Updated Relocation Plan for the SR-91 Corridor Improvement Project 4 I. Project Area Description A. Regional Location The proposed SR-91 CIP is generally located in the central area of the City of Corona, in the northwestern portion of Riverside County, between the cities of Anaheim and Riverside. The proposed Project is immediately accessible from the Cities of Anaheim, Corona, Norco, Riverside, and Yorba Linda from SR-91, SR-241, and I-15. Refer to Figure 2: Regional Project Location. Figure 2: Regional Location Source: State Route 91 Corridor Improvement Project Environmental Impact Report/Environmental Impact Statement, accessed August 30, 2012. B. Project Location The proposed project site is located alongside SR-91, spanning from the SR-91/SR-241 interchange in the Cities of Anaheim and Yorba Linda to Pierce Street in the City of Riverside and on I-15 from the Hidden Valley Parkway interchange in the Cities of Corona and Norco to the Cajalco Road interchange in the City of Corona. Specific properties subject to this relocation plan are located along SR-91 in the City of Corona and County of Riverside. Refer to Figure 3: Project Location. Updated Relocation Plan for the SR-91 Corridor Improvement Project 5 Figure 3: Project Location Source: State Route 91 Corridor Improvement Project Environmental Impact Report/Environmental Impact Statement, accessed August 30, 2012. C. General Demographic and Housing Characteristics According to the 2010 United States (U.S.) Census, the population of the City of Corona is 152,374. Corresponding Census data concerning the housing mix is shown in Table 1 and Table 2, below. Demographics for the City of Corona are provided because the majority of the proposed Project impacts are within the City of Corona. A small portion of the proposed Project lies within unincorporated County of Riverside. Including the demographics of unincorporated County of Riverside would misrepresent the demographics of occupants of the proposed Project. Therefore the demographics of unincorporated Riverside County were not included in this Plan. Table 1: 2010 Census Population – City of Corona Population City Percentage Total Population 152,374 100.00% White 90,925 59.67% Black or African American 8,934 5.86% American Indian or Alaskan Native 1,153 0.76% Asian 15,048 9.88% Native Hawaiian and Other Pacific Islander 552 0.36% Some Other Race 28,003 18.38% Two or More Races 7,759 5.09% Updated Relocation Plan for the SR-91 Corridor Improvement Project 6 Population City Percentage Hispanic or Latino (of Any Race)2 66,447 43.61% Not Hispanic or Latino 85,927 56.39% Source: U.S. Census Bureau, accessed August 31, 2012 Table 2: 2010 Census Housing Units – City of Corona Type City Percentage Total Units 47,174 100.00% Owner-Occupied 30,210 64.04% Renter-Occupied 14,740 31.25% Vacant Housing Units 2,224 4.71% Available For Sale Only (of Total Vacant Units) 721 32.42% Available For Rent – Full Time Occupancy (of Total Vacant Units) 826 37.14% Sold or Rented – Not Occupied (of Total Vacant Units) 181 8.14% Otherwise Not Available e.g., seasonal, recreational, or occasional use (of Total Vacant Units) 101 4.54% Other Vacant (of Total Vacant Units) 395 17.76% Source: U.S. Census Bureau, accessed August 31, 2012 2 U.S. Census Bureau provides additional descriptive population data where persons are identified as either “Hispanic or Latino (of any race)” or “Not Hispanic or Latino.” The sum of these two categories will equal the total population of a data set. Relocation Plan for the SR-91 Corridor Improvement Project 7 II. Assessment of Relocation Needs A. Survey Methods To obtain necessary information for the preparation of this Plan, personal interviews among potentially affected residents and business operators were conducted. As part of the early acquisition activities, OPC contacted a small number of the occupants for the identified parcels in November 2010. Additional interviews were conducted with the remaining residents and businesses in August and September, 2012. Interviewers were successful in obtaining survey responses from 120 of 131 occupied residential dwellings (92%) and 48 of 61 occupied businesses (79%). The majority of interviews were conducted on-site in homes and places of business in either English or Spanish, as appropriate. Follow up attempts to reach occupants were made through the combination of personal visits and telephone. Inquiries made of residential occupants concerned household size and composition, income, monthly rent obligation, length and type of occupancy, ethnicity, home language, disabilities/health problems, and replacement housing preferences. Survey questions of business operators concerned the nature of the business, leasehold circumstances, annual revenues, description, and size of current operations, special facility requirements, and area preferences with respect to possible replacement locations. The descriptive data in this Plan concerning residents and commercial uses are based solely on anecdotal responses. No attempt was made to verify income or other information provided by residents or business owners. Samples of the residential and business interview forms used in the interview process are presented as Exhibits B and C of this report. B. Field Survey Data – Residential The proposed Project includes 393 individuals who will require relocation. As stated above in Section II.A., survey information was obtained from 120 of 131 occupied residential households (92%). 1. Housing Mix The proposed Project area includes a variety of housing types, including single family homes, multi-family homes, and mobile homes. Of the 120 respondent households, 58 respondent households reside in single family or multi-family housing, of which 42 are tenant-occupied and 16 are owner-occupied. One respondent household resides in a studio unit, 5 households reside in a one-bedroom unit, 31 households reside in a two-bedroom unit, 15 households reside in a three-bedroom unit, 5 households reside in a four-bedroom unit, and 1 household resides in a five-bedroom unit. The housing mix consists of 29 single-family residences and seven apartment complexes. In addition, there were 62 respondent households from the 71 mobile home occupants, of which 17 are tenant-occupied and 45 are owner-occupied. Information was not obtained from eight Updated Relocation Plan for the SR-91 Corridor Improvement Project 8 households despite several attempts, and one home was vacant at the time of the survey. Table 3 below shows current housing in the proposed project area by bedroom size. Table 3: Proposed Project Area Housing – Dwelling Bedroom Sizes (58 respondents) # of Bedrooms Studio One Two Three Four Five # of Units –Tenants 1 3 30 7 1 - # of Units – Owners - 2 1 8 4 1 Total Units 1 5 31 15 5 1 Of the 62 respondent mobile home households, respondents reside in two-, three-, or four- bedroom households. Table 4 below shows current housing for mobile homes in the proposed Project area by bedroom size. Table 4: Proposed Project Area Housing – Mobile Home Dwelling Bedroom Sizes (62 respondents) # of Bedrooms Two Three Four # of Units – Tenants 13 4 - # of Units – Owners 37 5 3 Total Units 50 9 3 2. Project Area Rents a. Housing Of 42 tenant households, 33 households provided monthly rent data. Table 5 below shows monthly rents by bedroom size among the respondent tenant households. The rounded rent averages are: studio - $450; one-bedroom – $370; two-bedroom – $885, and; three-bedroom – $1,110. Updated Relocation Plan for the SR-91 Corridor Improvement Project 9 Table 5: Proposed Project Area Tenant Rents (33 respondents) Studio One Bedroom Two Bedroom Three Bedroom $450 $100 $350 $850 - $350 $450 $1,100 - $650 $550 $1,150 - - $600 $1,350 - - $660 - - - $800 (2) - - - $900 - - - $950 (3) - - - $975 (3) - - - $985 (3) - - - $995 (2) - - - $1,000 (2) - - - $1,050 (2) - - - $1,100 (2) - b. Space Pad/Rent Owners of mobile homes pay service or space pad rents to the mobile home parks. Among 45 respondent mobile home owner-occupants, the average amount paid for pad rent to the mobile home park owner is $720, with rents ranging from $575 to $1,404. 3. Occupancy/Overcrowding There is a total known proposed Project population of 393 individuals, consisting of 282 adults and 111 minors. The average household size is 3 persons per dwelling unit. The distribution of household sizes within the proposed Project area is provided in Table 6 below. Table 6: Current Household Size Occupants (120 households) # in Household # Households – Tenants # Households – Owners One 8 20 Two 10 18 Three 11 6 Four 12 3 Five 7 6 Six 5 5 Seven 2 2 Eight 1 2 Nine 1 - Ten 1 - The standard for housing density adopted by RCTC allows two persons per bedroom and one person in a common living area. RCTC adheres to the state building code occupancy standard based on the square footage of the dwelling for households larger than eight members. Based Updated Relocation Plan for the SR-91 Corridor Improvement Project 10 on these criteria as compared to available tenant data, there appear to be nine overcrowded units among the subject tenant residential properties. Replacement housing referrals to the occupants of these dwellings will reflect the need for larger accommodations to comply with the State and City of Corona code requirements. 4. Replacement Housing Needs Replacement housing needs, as expressed in this Plan, are defined by the total number of required replacement units and the distribution of those units by bedroom size. The projected number of required units by bedroom size is calculated by comparing survey data relative to household size with the RCTC’s replacement housing occupancy standards. These standards, generally, allow for up to three persons in a one-bedroom unit, five persons in a two-bedroom unit, and seven persons in a three-bedroom unit. Any households consisting of more than eight members will require a four-bedroom replacement unit based on the respective size of that unit per the state building code. For mobile homes, coach age and condition along with availability of space in another reasonably comparable mobile home park will determine whether any of the owner-occupied units can be relocated. Those owner-occupant households which occupy units that cannot be relocated will be eligible for payments to replace their residence and assist with any increase in space rent at the new facility. For the purpose of computing overall replacement housing needs and preparing the relocation assistance budget, it is assumed in this Plan that owner and tenant replacement housing needs will be met by reliance on available open market units and not through the relocation of currently occupied coaches. The proposed Project’s replacement housing requirements are summarized below in Table 7, Table 8, and Table 9. Table 7: Mobile Home Replacement Housing Needs (17 tenants + 45 owners) # of Bedrooms One Two Three Four # Needed – Tenants - 12 4 1 # Needed – Owners - 35 7 3 Table 8: Single Family Residences (SFRs) Replacement Housing Needs (15 tenants + 11 owners) # of Bedrooms One Two Three Four Five # Needed – Tenants 2 5 6 2 - # Needed – Owners - - 7 3 1 Updated Relocation Plan for the SR-91 Corridor Improvement Project 11 Table 9: Apartments, Duplexes, Triplexes and Fourplexes – Replacement Housing Needs (27 tenants + 5 owners) # of Bedrooms One Two Three Four # Needed – Tenants 1 20 5 1 # Needed – Owners 1 1 3 - 5. Income Income information was provided by 101 households. According to income standards for the County of Riverside (Exhibit D) adjusted for family size as published by the United States Department of Housing and Urban Development (HUD), 56 proposed Project households qualify as extremely low income (30% or less of median), 22 as very low income (31%-50% of median), 8 as low income (51%-80% of median), 7 as median income (81%-120% of median) and 8 as moderate income (over 120% of median). Table 10 below outlines this information. The range of reported annual household income among the 102 respondents was $4,200 to $168,000. Table 10: Income Levels of Residential Housing (101 respondents)3 Extremely Low Very Low Low Median Moderate 56 22 8 7 8 Source: Department of Housing and Community Development, State Income Limits for 2012 6. Ethnicity/Language Ethnicity among the proposed Project area households is shown below in Table 11. Table 11: Ethnicity of Proposed Project Area Households (116 respondents) Ethnicity Number of Households Project Percentage White 40 34% Black or African American 2 2% American Indian or Alaskan Native - - Asian 1 1% Native Hawaiian and Other Pacific Islander - - Some Other Race 1 1% Two or More Races 3 3% Hispanic or Latino (of Any Race) 69 59% Thirty eight of the respondent households (33 percent) identified Spanish as their primary household language. 3 This number reflects the number of displacees who provided income verification. Updated Relocation Plan for the SR-91 Corridor Improvement Project 12 7. Senior/Disabled Households There are 48 households with at least one senior individual (62 years or older) in the proposed Project area and 9 households with reported physical and/or psychological disabilities. Individuals who reported disabilities included a variety of physical mobility impairments, psychological and other physical health issues. Care will be taken to meet the special needs of each household, particularly as these needs involve physical access to accommodations. Foreknowledge of individual health issues will enable relocation staff to more effectively manage the relocation process. In all cases involving physical or mental impairments, extra efforts will be made to provide close individual case monitoring. 8. Preferred Relocation Areas The majority of residents who were surveyed expressed a preference to remain in the community in order to maintain current school enrollment, access to employment, medical facilities, recreational resources, and public transportation. Several residents indicated a desire to move, mentioning Corona, Norco, Riverside, Moreno Valley, Borrego Springs, Pomona and Hemet as possible alternatives. Some occupants expressed openness as far as location is concerned and indicated they may consider moving out of state. Most indicated a preference to remain in an area close to their present dwelling. C. Field Survey Data – Nonresidential There are 61 non-residential entities potentially affected by the proposed Project. Survey information was obtained from 48 of the non-residential occupants. Owner-occupied businesses, which own their own facilities, account for 4 of the businesses, while the remaining are renting or leasing their premises. The following information in Table 12 reflects information gathered from personal interviews as well as observations made in the field. Business type, estimated square footage, monthly rent and number of employees are outlined below. Table 12: Non-Residential Uses Business Type Estimated Square Footage Monthly Rent Number of Employees Retail Sales 2,640 - - Retail Service - - - Retail Service 2,400 - 25 Retail Sales 1,340 - 2 Retail Sales - - 3 Retail Sales - - 3 Office - - - Retail Sales - - - Retail Sales 1,000 - 2 Retail Sales 4,700 - 10 Retail Sales 1,344 - - Updated Relocation Plan for the SR-91 Corridor Improvement Project 13 Business Type Estimated Square Footage Monthly Rent Number of Employees Industrial 10,634 - - Office 1,750 - 2 Office 1,468 - 100 Office 2,000 - 10 Retail Service 41,818 - - Retail Sales 2,500 $1,350 5 Office 2,032 $4,775 5 Office 2,000 - 8 Office - - - Office 3,524 $4,779 5 Retail Sales 2,700 $2,400 11 Retail Sales 800 $719 1 Retail Sales 2,000 $1,800 1 Office 10,000 - 40 Industrial - - - Retail Service - - - Office 15,000 - 10 Retail Service 7,000 $3,900 - Retail Service 5,800 - - Retail Service - - - Retail Sales 2,000 - 9 Retail Sales 1,000 - 1 Retail Sales - - 11 Retail Service 3,000 $3,000 3 Retail Service - $4,200 - Office 1,500 - 7 Retail Sales - $2,600 - Retail Sales - - - Industrial 12,225 $3,064 24 Industrial 2,990 - - Industrial - - 10 Industrial 1,000 - 9 Industrial 600 - 12 Industrial - $700 - Retail Sales 8,000 - - Office 1,200 $350 3 Retail Service 1,000 $1,470 3 Office 500 $325 2 Office 1,300 $1,375 5 Office 600 $325 3 Updated Relocation Plan for the SR-91 Corridor Improvement Project 14 Business Type Estimated Square Footage Monthly Rent Number of Employees Retail Service - - - Retail Sales - - - Industrial 11,196 $12,400 26 Industrial 10,161 $2,672 - Industrial 3,000 $2,500 2 Industrial 2,000 - 2 Industrial - - 2 Industrial - $1,100 - Industrial 8,000 $7,000 42 Industrial 8,000 $2,500 8 There are 48 known non-occupant owners of investment property that will potentially be affected as a result of the proposed Project’s acquisitions. These owners lease their space within the proposed Project boundaries to residents and businesses occupying the area. These off-site owners are considered businesses and may be eligible to receive assistance and benefits for expenses actually incurred in reestablishing their business at a replacement property site, in the amount not to exceed $10,000. These and other benefits are outlined in Section IV.E. Table 13 below identifies the quantity and types of properties potentially affected by the proposed Project. Table 13: Non-Occupant Owners Leasing Space to Others Type Number Mobile Home Park 19 Residential 17 Commercial 12 Total 48 Additionally, there may be individual mobile home owners currently renting their units that are unidentified at the time of preparation of this Plan, but would qualify for this benefit as well. Partial acquisitions of four self-storage facilities are planned and it is estimated approximately 200 units will be impacted by the proposed Project. Research was conducted in an effort to find available replacement sites for the impacted storage unit facilities. The research conducted has confirmed that there are adequate replacement sites for the impacted storage unit facilities. At this time, the extent of the impacts is unknown to the storage unit facilities, or the number of units that will require personal property to be relocated. Nevertheless, if the owner of personal property in a storage unit must move that personal property, relocation assistance and benefits defined in the URA will be afforded to them. Relocation Plan for the SR-91 Corridor Improvement Project 15 III. Relocation Resources No eligible person shall be required to move from their dwelling unless comparable replacement dwellings are available to such persons. The purpose of this section is to identify if sufficient comparable replacement housing resources exist for all potential residential displacees. Additionally, while available replacement locations are not required for non- residential occupants to move, a survey of available replacement commercial sites have been searched in order to determine what sites may be available to the non-residential occupants in order to determine what impacts, if any, there may be due to a lack of available replacement sites. The RCTC is committed to making every effort to satisfactorily relocate all displaced occupants. Through the advanced acquisition program, 16 residential households and 7 businesses have vacated the properties in the proposed Project area, but have been included in this plan. A. Methodology To determine the availability of residential and commercial sites prior to the displacement of occupants from the proposed Project area, resources were researched through the following sources: • Internet sources (MLS listings, Loopnet, CoStar, Craigslist); • Canvassing the proposed Project area for properties available for lease and or for sale; • Telephone and field contact with commercial brokerages serving the area; • Classified rental listings from The Press-Enterprise and For Rent publications, and; • Contacts with real estate/property management companies serving the community. B. Replacement Housing/Commercial Site Availability 1. Residential Rental Housing A housing resource survey was conducted to determine the availability of replacement housing within the City sufficient to meet the needs of displaced homeowners within the proposed Project. Although the proposed project limits include certain areas in Riverside County, there are no residential displacements anticipated to occur within the County limits. The only displacements that will be occurring within the County include nonresidential. The rental replacement housing survey considered both conventional housing and mobile homes. This data is summarized in Tables 14 and 15, below. The conventional housing survey, Table 14, identified a total of 110 available one-, two-, three- and four-bedroom conventional housing units for rent. The use of conventional replacement housing may be necessary since the availability of mobile homes for rent is limited. The conventional housing includes one- and two- bedroom apartments and single-family dwellings with three or four bedrooms. The individual figures for number of units found by bedroom size are presented in the table alongside the number of units needed (shown in parenthesis) to meet replacement obligations. Updated Relocation Plan for the SR-91 Corridor Improvement Project 16 Table 14: Availability and Cost of Replacement Rental Housing (conventional) # of Bedrooms One Two Three Four Number Found (Number Needed) 9 (3) 39 (25) 30 (11) 32 (3) Rent Range $695 – 1,350 $700 – 1,995 $1,450 – 2,595 $1,745 – 2,595 Median Rent $930 $1,100 $1,795 $2,140 Sources: MLS and www.craigslist.com, accessed August and September, 2012 The rent range shown in the table above indicates actual rents in the market place are among the figures used to make benefit and budget projections for this Plan. The variances in the rent range are a result of age, condition, size, and location. The median rent amounts shown in the table are among the figures used to make benefit and budget projections for the Plan. These amounts are, naturally, subject to change according to the market rates prevailing at the time of displacement. The survey of mobile homes, Table 15, identified 30 one-, two-, three- and four-bedroom mobile home units for rent. The quantity of mobile homes for rent is sufficient to meet the needs of all potentially displaced mobile home owners and tenants, as shown by the number of units found. Table 15: Availability and Cost of Replacement Rental Housing (Mobile Homes) # of Bedrooms One Two Three Four Number Found (Number Needed) 1 (0) 15 (12) 13 (4) 1 (1) Rent Range $575 $575 – 1,250 $725 – 1,685 $1,200 Median Rent $575 $850 $1,150 $1,200 Sources: MLS and www.craigslist.com, accessed August and September, 2012 2. Mobile Homes, Single Family Residences, and Duplexes/Triplexes/Fourplexes for Sale Housing The resource survey identified 56 two-bedroom mobile homes, ranging in price from $8,500 to $160,000 with a median price of $28,500; 27 three-bedroom mobile homes were found ranging in price from $15,000 to $125,000 with a median price of $40,000; and seven four-bedroom mobile homes ranging from $55,000 to $139,000 with a median price of $67,000. There are no one-bedroom mobile home units available for sale as of the date of this report. The search area encompassed all mobile home parks within Corona and parks in the surrounding areas of Riverside, Norco, Sun City, Hemet, Lake Elsinore, Menifee, and Moreno Valley. Table 16 and Table 17 outline for sale mobile homes, SFRs, and duplexes/triplexes/ fourplexes. Exhibit E presents a detailed list of all currently available mobile homes for sale found in the search area. Updated Relocation Plan for the SR-91 Corridor Improvement Project 17 Table 16: Availability and Cost of Mobile Homes for Sale # of Bedrooms Two Three Four Number Found (Number Needed) 56 (35) 27 (7) 7 (3) Price Range (in 000’s) $8.5 – 160 $15 – 125 $55 – 139 Median Listing Price $28,500 $40,000 $67,000 Pad Rents Range $325-934 $540-961 $425-934 Pad Rents Median $575 $655 $547 Sources: MLS, www.craigslist.com, and Mobile Home Village, accessed August and September, 2012 As shown in Table 17 below, the resource survey identified 6 one-bedroom homes ranging in price from $70,000 to $139,900 with a median price of $76,950; 13 two-bedroom homes ranging in price from $73,000 to $299,500 with a median price of $159,000; 45 three-bedroom homes ranging in price from $140,000 to $400,000 with a median price of $280,000; 58 four-bedroom homes ranging in price from $215,000 to $500,000 with a median price of $350,000; and 42 five- bedroom homes ranging from $274,000 to $500,000 with a median price of $389,000. The search area encompassed homes within Corona and the surrounding areas of Riverside and Norco. Exhibit F provides a detailed list of all available homes for sale found in the search area. Table 17: Availability and Cost of Single-Family Residences, Duplexes, Triplexes, and Fourplexes for Sale # of Bedrooms One Two Three Four Five Number Found (Number Needed) 6 (1) 13 (1) 45 (10) 58 (3) 42 (1) Price Range (in 000’s) $70 – 140 $73 – 300 $140 – 400 $215 – 500 $274 – 500 Median Selling Price $76,950 $159,000 $280,000 $350,000 $389,000 Sources: MLS, www.craigslist.com, and www.zillow.com, accessed August and September, 2012 3. Commercial Space Availability The availability of retail space in the City of Corona and the surrounding communities was researched through commercial real estate listing resources. Table 18 below summarizes the availability of the variously sized retail properties for lease and for sale. Exhibit G provides a detailed list of all available commercial space for sale found in the search area. Updated Relocation Plan for the SR-91 Corridor Improvement Project 18 Table 18: Summary of Available Commercial Space Type of Property Total Found Price Range Median Price Office 58 $.60 - $3.75 $1.30 Retail 49 $.70 - $2.65 $1.50 Industrial/Warehouse 57 $.39 - $1.63 $.65 Office – For Sale 3 $150 - 151 $150 Retail – For Sale - - - Industrial/Flex Space – For Sale 28 $76 - 396 $102 Source: Loopnet, accessed August and September, 2012 4. Loss of Goodwill Goodwill consists of the benefits that accrue to a business as a result of its location; reputation for dependability, skill, or quality; and, any other circumstances resulting in probable retention of old, or acquisition of new patronage. Claims for loss of goodwill are not compensable under the statutory provisions related to relocation assistance. Where claims are anticipated, State law (California Code of Civil Procedure §1263.510) requires business owners to prove all of the following: (1) The loss is caused by the taking of the property; (2) The loss cannot reasonably be prevented by relocation of the business, or by taking steps and adopting procedures that a reasonably prudent person would take to preserve the goodwill; and, (3) The compensation for the loss has not been included as a relocation payment, or duplicated in compensation otherwise awarded to the owner. 5. Summary Considering the above described availability of replacement housing resources that were identified, it appears as though there are more than adequate replacement resources for the residential occupants, both tenants and owner-occupants. Although adequate replacement resources exist, based on surveyed results of rental and purchase opportunities and the current rent and likely values of existing dwellings, occupants will likely have increases in monthly rents and/or higher purchase costs. These possible increases, if any, will be met through the RCTC’s obligation under the relocation regulations, including the Last Resort Housing (LRH) requirements (see Section IV.G). For owner-occupants, particularly the more elderly and physically challenged, relocation to a senior facility may well be considered as an option. Some tenants, as suggested by their survey responses, may consider purchasing rather than re-renting new accommodations. Individual preferences will be accounted for once the relocation process has begun and a relocation consultant has had the opportunity to speak personally with each resident. Therefore, with possible benefit payments exceeding statutory amounts through LRH obligations, the relocation activities are not anticipated to create any special housing considera- tions. With LRH benefit payments, the proposed Project will meet comparable replacement dwelling requirements. Updated Relocation Plan for the SR-91 Corridor Improvement Project 19 Furthermore, as a result of there being more than 15 households anticipated to be displaced if the proposed Project were to move forward, the RCTC will submit this Plan and subsequent resource surveys for review to the City local housing, development and planning agencies to be compared to other existing information on housing available. Regarding non-residential resources, the data collected presents a multitude of business sites that are currently available for sale and lease to commercial occupants. Therefore, it is believed adequate replacement sites for non-residential occupants exist, however some business uses may require conformance with local conditional use permits and/or zoning requirements. C. Related Issues 1. Concurrent Residential Displacement The City of Corona’s Auto Center Drive Grade Separation Project is scheduled to begin construction in January 2013. This project will not result in any displacements. The project consists of constructing a grade separation at the Burlington Northern Santa Fe (BNSF) railroad crossing at Auto Center Drive in Corona.4 Therefore, this proposed Project will not compete or adversely affect the availability of comparable replacement resources. There are no other known current public projects under way in the City of Corona or adjacent communities which, presently, would compete with the proposed Project for needed housing resources. The RCTC does intend to monitor the activity of local agencies; however, along with the capacity of the housing market throughout the displacement phase of the proposed Project. No residential displacee will be required to move without both adequate notice and access to available affordable decent, safe and sanitary housing. 2. Language Relocation assistance information will be provided in English or the language used by the residents and business owners. All written communication will be provided in the language needed, or an interpreter will be provided in order to assure that all displacees obtain a complete understanding of the relocation program and available benefits. 3. Temporary Relocation The proposed Project is not anticipated to cause any temporary displacement. 4 City of Corona Web Site: http://discovercorona.com/City-Departments/Public-Works/Construction-Projects.aspx, accessed August 30, 2012. Relocation Plan for the SR-91 Corridor Improvement Project 20 IV. The Relocation Program The RCTC’s Relocation Program is designed to minimize hardship, be responsive to unique project circumstances, maintains personal contact with all affected individuals, consistently applying all regulatory criteria to formulate eligibility and benefit determinations, and conforms to all applicable requirements. The RCTC has retained Overland, Pacific & Cutler, Inc. (OPC) to administer the Relocation Program. OPC has worked on more than 2,500 public agency acquisition and relocation projects over the past 30 years. Additionally, OPC has an extensive resume of redevelopment and other Public Works projects undertaken in the City of Corona and other Riverside County communities. Experienced RCTC staff will monitor the performance of OPC and be responsible to approve or disapprove OPC recommendations concerning eligibility and benefit determina- tions and interpretations of RCTC policy. The Relocation Program consists of two principal constituents: Advisory Assistance and Financial Assistance. A. Program Assurances, Standards and Objectives The RCTC will provide the displaced residential and business occupants with the assistance, rights and benefits required under federal and or state relocation law and the RCTC’s policies and procedures. The relocation program will provide both advisory and financial assistance. Every effort will be made to facilitate relocation arrangements and minimize hardship for displacees. The program objectives will be as follows: 1. To fully inform eligible proposed Project displacees of the nature of, and procedures for, obtaining relocation assistance and benefits; 2. To determine the needs of each displacee eligible for assistance; 3. To provide continuously updated referrals to potential replacement sites within a reasonable time prior to displacement and assure that no occupant is required to move without a minimum of 90 days written notice to vacate; 4. To provide assistance that does not result in different or separate treatment due to race, color, religion, national origin, sex, marital status or other arbitrary circumstances; 5. To supply information concerning federal programs and other governmental programs providing assistance to displaced persons; 6. To assist each eligible occupant to complete applications for benefits; 7. To make relocation benefit payments in accordance with the appropriate guidelines; 8. To inform all persons subject to displacement of RCTC policies with regard to eviction and property management; and 9. To establish and maintain a formal grievance procedure for use by displaced persons seeking administrative review of RCTC decisions with respect to relocation assistance. Updated Relocation Plan for the SR-91 Corridor Improvement Project 21 B. Relocation Advisory Assistance OPC staff is available to assist the permanently displaced households and businesses with questions or concerns about relocation and/or assistance in relocating. Relocation staff is located at 2280 Market Street, Suite 200, Riverside, CA 92501, with office hours from 8:00 a.m. to 5:00 p.m., and can be contacted at (951) 683-2353. A comprehensive relocation program, with technical and advisory assistance, will be provided to assist all persons being displaced as a consequence of the proposed Project. Personal contact will be maintained with all individuals until the relocation process has been completed. Overland, Pacific & Cutler, Inc. (OPC) has been retained by the RCTC to assist in the administration of its relocation program. OPC will work closely with the RCTC staff. The RCTC staff will provide final approvals, or otherwise, of all OPC recommendations. Every reasonable effort will be made to ensure that the relocation of residents and businesses occurs with a minimum of delay and hardship. The following specific services will be provided: 1. The residents and businesses located in the proposed Project area will be personally interviewed to gather information appropriate to the determination of needs and preferences regarding replacement of existing facilities; 2. A printed Informational Brochure (Exhibits H and I) will be provided in English or the displacee’s language should that be subsequently deemed necessary. Signed acknowledgements will be obtained to verify receipt of this material; 3. Maintain a database of available residential units for sale and commercial space and distribute replacement site referrals for the duration of the proposed Project; 4. Assistance will be offered to displacees in connection with arrangements for the purchase of real property, if applicable, obtaining required business permits or licenses, the filing of claim forms to request relocation benefits from the RCTC and to obtain services from other public agencies; 5. Special assistance in the form of referrals to governmental and non-governmental agencies will be made, if requested; 6. Assist eligible displacees with the preparation and submission of relocation assistance claims; 7. Make benefit determinations and payments in accordance with applicable law and RCTC policy; 8. Assure that displacees are not required to move without a minimum of 90 days written notice to vacate; 9. Inform all persons subject to displacement of RCTC policies with regard to eviction and property management; Updated Relocation Plan for the SR-91 Corridor Improvement Project 22 10. Establish and maintain a formal grievance procedure for use by displaced persons seeking administrative review of RCTC decisions with respect to relocation assistance; and 11. Provide assistance that does not result in different or separate treatment due to race, color, religion, national origin, sex, marital status or other arbitrary circumstances. C. Relocation Benefits – Residential Specific eligibility requirements and benefit plans will be detailed on an individual basis with displacees. In the course of personal interviews and follow-up visits, the household will be counseled as to available options and the consequences of any choice with respect to financial assistance. Relocation benefits will be provided in accordance with the provisions of the federal and state relocation law and regulations. Benefits will be paid to eligible displaced persons upon submission of required claim forms and documentation in accordance with RCTC normal administrative procedures. 1. Residential Moving Expense Payments All residential occupants that will be relocated will be eligible to receive a payment for moving expenses. Moving expense payments will be made based on the actual cost of a professional move or a fixed payment based on a room-count schedule. a. Actual Cost (Professional Move) The displacee may elect to retain the services of a licensed professional mover, in which case the RCTC will pay for the actual cost of the moving services, based on the lower of at least two acceptable bids (the RCTC may, at its discretion, solicit competitive bids to determine the lowest, reasonable move cost). After the move is complete, the displacee may pay the mover directly and seek reimbursement from the RCTC or request a direct payment from the RCTC to the mover. In addition to the cost of the actual move, one-time expenses associated with utility reconnections (i.e., gas, water, electricity, telephone, cable) will be eligible for reimbursement. Transportation costs will be limited to a distance of 50 miles, unless otherwise authorized by the RCTC. b. Fixed Payment (based on Room Count Schedule) An occupant may elect to receive a fixed payment for moving expenses that is based on the number of rooms occupied in the displacement dwelling. In this case, the person to be relocated takes full responsibility for the move. The fixed payment includes all utility connections as described in (a), above. At a minimum, the fixed schedule payment for single occupancy efficiency units, furnished with the tenants own personal property, is $450, which includes all utility connections at the Updated Relocation Plan for the SR-91 Corridor Improvement Project 23 replacement location. The current schedule for fixed moving payments is provided below in Table 19. Table 19: Schedule of Fixed Moving Payments Unfurnished Dwelling Room Count 1 2 3 4 5 6 7 8 Each Additional Amount $685 $880 $1,100 $1,295 $1,570 $1,815 $2,090 $2,365 $250 Furnished Dwelling Room Count 1 Each Additional Amount $450 $85 Source: Federal Highway Administration (effective May 23, 2012) c. Moves from a Mobile Home A displaced person’s actual, reasonable and necessary moving expenses for moving personal property from a mobile home may be determined based on the cost of one, or the combination of the eligible actual moving expenses or fixed payment as described above. The owner- occupant of a mobile home that is moved as personal property and used as a person’s replacement dwelling is also eligible for: 1. The reasonable cost of disassembling, moving, and reassembling any appurtenances attached to a mobile home, such as porches, decks, skirting, and awnings, which were not acquired, anchoring of the unit, and utility “hookup” charges; 2. The reasonable cost of repairs and/or modifications so that a mobile home can be moved and/or made decent, safe, and sanitary; 3. The cost of a nonrefundable mobile home park entrance fee, to the extent that it does not exceed the fee at the comparable mobile home park, if the person is displaced from a mobile home park or the RCTC determines that the payment of the fee is necessary to effect relocation. 2. Rental Assistance to Tenants/Owner-Occupants Who Choose to Rent A tenant or owner-occupant displaced from a dwelling may be entitled to a Replacement Housing Payment in the form of rental or down payment assistance not to exceed $5,250 (prior to consideration of eligibility for Last Resort Housing benefits – see Last Resort Housing, Section IV.G), if the displacee: 1. Has actually and lawfully occupied the displacement dwelling for at least 90 days immediately prior to the initiation of negotiations; and 2. Has rented, or purchased, and occupied a decent, safe, and sanitary replacement dwelling within one year (unless the RCTC extends this period for good cause) after: a. For a tenant, the date he or she moves from the displacement dwelling; or Updated Relocation Plan for the SR-91 Corridor Improvement Project 24 i. For an owner-occupant, the later of: 1. The date final payment is received for the displacement dwelling, or in the case of condemnation, the date the full amount of estimated just compensation is deposited with the court; or 2. The date the owner-occupant moves from the displacement dwelling. Rental/Down payment Assistance payment amounts are equal to 42 times the difference between the base monthly rent and the lesser of: 1. The monthly rent and estimated average monthly cost of utilities for a comparable replacement dwelling; or 2. The monthly rent and estimated average monthly cost of utilities for the decent, safe, and sanitary replacement dwelling actually occupied by the displaced person. The base monthly rent for the displacement dwelling is the lesser of: 1. The average monthly cost for rent and utilities at the displacement dwelling for a reasonable period prior to displacement, as determined by the RCTC. For owner- occupants or households, which paid little or no rent, fair market rent will be used as a substitute for actual rent; or 2. Thirty percent (30%) of the displaced person’s average, monthly gross household income if the amount is classified as “low income” by the U.S. Department of Housing and Urban Development (HUD) Annual Survey of Income Limits for the Public Housing and Section 8 Programs. HUD’s Survey is shown as Exhibit D. If a displacee refuses to provide appropriate evidence of income or is a dependent, the base monthly rent shall be determined to be the average monthly cost for rent and utilities at the displacement dwelling; or 3. The total of the amount designated for shelter and utilities if receiving a welfare assistance payment from a program that designated the amounts for shelter and utilities. Table 20 illustrates the computation of a rental/down payment assistance payment amount. Updated Relocation Plan for the SR-91 Corridor Improvement Project 25 Table 20: Computation of Rental Assistance Payments 1. Old Rent $1,000 Old Rent, plus Utility Allowance Or 2. Ability to Pay $950 30% of the Gross Household Income 3. Lesser of Lines 1 or 2 $950 Base Monthly Rental Subtracted From: 4. Actual New Rent $1,050 Actual New Rent including Utility Allowance Or 5. Comparable Rent $1,050 Determined by the RCTC; includes Utility Allowance 6. Lesser of Lines 4 or 5 $1,050 7. Yields Monthly Need: $100 Subtract Line 3 from Line 6 Rental Assistance $4,200 Multiply Line 7 by 42 Months 3. Down payment Assistance to Tenants/90 Day Owner-Occupants Who Choose to Purchase Displacees otherwise eligible to receive a Rental Assistance Payment as previously described, may choose to utilize the full amount of their rental assistance eligibility amount (including Last Resort Housing benefits) to purchase a home. Such payments shall be deposited directly to an escrow account with provisions that allow the RCTC to recover its funds should the escrow be cancelled or not proceed in a timely manner. Down payment assistance to a displaced owner- occupant cannot exceed the amount the owner would have received had the owner met the 180-day occupancy requirement. 4. Payments to 180 Day Residential Owner-Occupants Residential owner-occupants who have established residency for at least 180 days prior to the RCTC’s offer to purchase may be eligible for up to $22,500 in replacement housing assistance, prior to consideration of eligibility for Last Resort Housing benefits (see Last Resort Housing, Section IV.G). The amount of the Replacement Housing Assistance Payment will be determined based on three separate elements: a) Purchase Price Differential; b) Mortgage Interest Differential; and, c) Incidental Expenses. a. Price Difference Differential The Purchase Price Differential is based on three factors: Acquisition Price: the price paid by the RCTC for the proposed Project dwelling; Actual Purchase Price: the actual price paid for a replacement dwelling; and, Comparable Replacement Cost: the cost of a decent, safe and sanitary dwelling comparable to the dwelling acquired by the RCTC. The purchase price differential amount is determined by comparing the price of the acquired dwelling (including any proceeds obtained through condemnation) to the lesser of the actual Updated Relocation Plan for the SR-91 Corridor Improvement Project 26 cost paid for a replacement home versus the price of the comparable dwelling used to compute eligibility in the Notice of Eligibility issued to the displaced owner. In today’s real estate market, many agencies have encountered owner-occupants with negative equity, where the fair market value is less than the outstanding debt. The RCTC will follow the Programmatic Waiver of the Code of Federal Regulations methodology for calculating replacement housing payments. This waiver allows computing a replacement housing payment based upon the initial written offer of just compensation rather than the administrative settlement amount. The qualifying conditions for use of the Programmatic Waiver are: • Applies only to those in a negative equity situation • Applies only to owner occupied homes • Applies only to single family homes • Applies only to mortgages that are current b. Mortgage Interest Differential The purpose of the Mortgage Interest Differential Payment is to compensate homeowners for increased costs between the acquired dwelling and the replacement dwelling. The payment for increased mortgage interest cost shall be the amount which will reduce the mortgage balance on a new mortgage to an amount which could be amortized with the same monthly payment for principal and interest as that for the mortgage(s) on the displacement dwelling. In addition, payments shall include other debt service costs, if not paid as part of incidental costs. To be eligible for this payment, the mortgage on the dwelling being acquired must have been in place, as a valid lien, for at least 180 days prior to the RCTC’s initial written offer to purchase. c. Incidental Expenses – Closing Costs One-time, non-recurring closing costs associated with the purchase of a comparable, replacement dwelling are compensable. Examples of such compensable expenses include costs for: a property survey; preparation of a legal description and deed; recording fees; title insurance; revenue stamps and transfer taxes; loan application fees; loan origination fees; appraisal fees; a credit report; certification for structural soundness; and, termite inspection, when required. Prepaid recurring expenses for mortgage interest, property taxes and insurance are not compensable. The total Replacement Housing Payment is the sum of the Purchase Price Differential, Mortgage Interest Differential, and compensable Incidental Expenses. 5. Payments to Mobile Home Owners Mobile home owner-occupants will have four options with respect to relocation arrangements following the RCTC’s offer to purchase: 1. The owner may decline to sell his/her mobile home and elect to move and set up the unit in a new location, including any existing improvements, providing the total cost of moving the coach does not exceed the replacement cost of a comparable unit. It needs to be noted however, that current zoning and building code in California practically make it impossible for a coach older than five years to be moved and Updated Relocation Plan for the SR-91 Corridor Improvement Project 27 reestablished at another location. The move options would, therefore, leave sites outside California and would need to be verified at the owner’s expense. Benefits will include the cost of moving and setting up the existing mobile home, within 50 miles from the proposed Project, and Rental Assistance for space rent. 2. The owner may elect to sell the mobile home to the RCTC for its appraised value-in- place, and purchase a comparable replacement coach in another location; Benefits will include Replacement Housing Payment, Residential Moving Expenses, and Rental Assistance for space rent. 3. The owner may elect to sell the mobile home to the RCTC for its appraised value-in- place and apply their entitlement toward the purchase of another type of residential dwelling, including the amount determined for Rental Assistance for space rent. Benefits will include Replacement Housing Payment, Residential Moving Expenses, and Rental Assistance for space rent. 4. The owner may elect to sell the mobile home to the RCTC for its appraised value-in- place and rent an alternate type of residential unit. The owner will be entitled to utilize up to the total of the replacement housing eligibility in the form of rental assistance. Actual rental assistance eligibility will be determined by subtracting the difference between the economic rent of the mobile home residence from the market rent for an apartment of comparable size (e.g., number of bedrooms) multiplied by 42 months. 6. Payments to Non-tenured Residential Tenants A residential tenant who has actually and lawfully occupied the displacement dwelling for less than 90 days immediately prior to the initiation of negotiations is entitled to receive a moving expense payment. Additionally, non-tenured residential tenants may qualify for a rental assistance payment under the provisions of the Last Resort Housing assistance (see Last Resort Housing, Section IV.G). Such assistance is authorized when the person’s monthly rent and estimated average monthly utility costs for the replacement dwelling exceeds the person’s base monthly rental for the displacement dwelling. D. Determinations of Comparable Housing Relocation staff will evaluate the cost of comparable replacement housing in the preparation of each individual Notice of Eligibility issued to residential displacees. For both residential tenants and owner-occupants, the cost of comparable replacement housing will be determined primarily on a comparative basis of three, if possible, presently available, comparable dwellings. A Replacement Housing Valuation Form will be prepared and placed in the file of each affected household. Updated Relocation Plan for the SR-91 Corridor Improvement Project 28 E. Relocation Benefits – Commercial Tenants, Non-profit Organizations and Offsite Owners of Rental Income Property Eligible businesses will have two options with respect to claims for relocation assistance benefits: 1. Compensation for actual reasonable and necessary moving and related expenses, or 2. A fixed payment not to exceed $20,000 *Off-site property owners whose sole business is considered to be the rental of real property to others are not eligible to receive a fixed payment but may file a claim for actual moving costs and compensation for reestablishment expenses up to $10,000.00. 1. Payment for Actual Reasonable and Necessary Moving and Related Expenses Any lawful business which qualifies as a displaced person is entitled to payment for such actual moving expenses, as the RCTC determines to be reasonable and necessary, including expenses for: 1. Transportation of persons and property from the present location to the replacement location (transportation costs for a distance beyond 50 miles are not eligible unless the RCTC determines that relocation beyond 50 miles is justified); 2. Packing, crating, uncrating, and unpacking personal property; 3. Disconnecting, dismantling, removing, reassembling, and installing relocated and substitute machinery, equipment and other personal property. Includes connection to utilities available nearby and modifications necessary to adapt such property to the replacement structure or to the utilities or to adapt the utilities to the personal property; 4. Storage of personal property for a period not to exceed 12 months, unless the RCTC determines that a longer period is necessary; 5. Insurance of personal property while in storage or transit and the replacement value of property lost, stolen, or damaged (not through the fault or negligence of the displaced person) in the process of moving, where insurance is not readily available. 6. Any license, permit, or certification required by the displaced business, to the extent that the cost is necessary for reestablishment at the replacement location. (These costs may be pro-rated based on the remaining useful life of any existing license, permit, or certification); 7. Reasonable and pre-authorized professional services, including architects’, attorneys’, engineers’ fees, and consultants’ charges, necessary for: (1) planning the move of personal property; (2) moving the personal property; or, (3) installing the relocated personal property at the replacement location; Updated Relocation Plan for the SR-91 Corridor Improvement Project 29 8. Professional services performed prior to the purchase or lease of a replacement site to determine its suitability for the business operation including, but not limited to, soil testing, feasibility and marketing surveys; 9. The purchase and installation of substitute personal property limited to the lesser of: (1) an amount equal to the reasonable expenses that would have been required to relocate the property, as determined by the RCTC, subject to certain limitations, or, (2) the replacement cost, less any proceeds from its sale or trade in; 10. Connection to available nearby utilities from the right-of-way to improvements at the replacement site; 11. The modification of machinery, equipment, or other personal property necessary to adapt these to the replacement location or to utilities available at the replacement location; 12. Re-lettering signs and replacing stationary on hand at the time of displacement that are made obsolete as a result of the move; 13. Actual direct losses of tangible personal property resulting from moving or discontinuing a business or non-profit organization, not-to-exceed the lesser of: (1) the fair market value of the property for continued use at its location prior to displacement less any proceeds from the sale of the property; or, (2) an amount equal to the reasonable expenses that would have been required to relocate the property, as determined by the RCTC, subject to certain limitations; 14. Actual and reasonable expenses incurred in searching for a replacement business or non- profit organization location, not to exceed $2,500, and including compensation for transportation expenses; time spent searching for a reasonable location, meals, and lodging; real estate broker or agent fees; time spent in obtaining permits and attending zoning hearings; and time spent negotiating the purchase of a replacement site; 15. Impact fees or one-time assessments for anticipated heavy utility usage; 16. Low Value/High Bulk: when the personal property to be moved is of low value and high bulk, and the cost of moving the property would be disproportionate to its value in the judgment of the RCTC, the allowable moving cost payment shall not exceed the lesser of: (1) the amount which would be received if the property were sold at the site or (2) the replacement cost of a comparable quantity delivered to the new business location. Examples of personal property covered by this provision include, but are not limited to, stockpiled sand, gravel, minerals, metals and other similar items of personal property as determined by the RCTC; 17. A Reestablishment allowance of up to $50,000, available to farms, non-profit organizations, and small businesses with no more than 500 employees. Reestablishment allowance payments are made in addition to compensation provided for actual, reasonable, and necessary moving expenses. Reestablishment allowance expense categories include but are not limited to: Updated Relocation Plan for the SR-91 Corridor Improvement Project 30 a. Repairs or improvements to the replacement property as required by federal, state or local law, code, or ordinance; b. Modifications to the replacement property to accommodate the business operation or make replacement structures suitable for conducting business; c. Construction and installation costs for exterior signing to advertise the business; d. Redecoration or replacement of soiled or worn surfaces at the replacement site, such as paint paneling or carpeting; e. Advertisement of replacement location; f. Estimated increased costs of operation during the first two years at the replacement site for such items as: i. Lease or rental charges ii. Personal or real property taxes iii. Insurance premiums, and iv. Utility charges, excluding impact fees g. Other items essential to the reestablishment of the business. 2. Self-Moves If the displaced business elects to take full responsibility for the move of the business, the RCTC will make a payment for the business’ moving expenses in an amount not to exceed the lower of the two acceptable bids or estimates submitted to the RCTC. At the RCTC’s discretion, a payment for a low cost or uncomplicated move may be based on a single bid or estimate. 3. A Fixed Payment in Lieu of a Payment for Actual Reasonable Moving and Related Expenses The option to claim a fixed payment enables both for-profit and non-profit businesses to receive relocation assistance compensation without providing documentation of bids and actual expenses. The payment amount available to any individual business is based on an average of annual net earnings over a two year period. For businesses which have not been in operation for two years, income figures can be annualized. The method for establishing income is through tax returns and/or certified financial statements. The payment to an eligible business may not be less than $1,000, or more than $20,000. To qualify for this payment, it must be determined that, a displaced business: • Owns or rents personal property, which must be moved in connection with such displacement and for which an expense would be incurred in such move; • Is not operated at the displacement site solely for the purpose of renting the dwelling or the site to others; • Cannot be a part of a commercial enterprise having at least three other establishments which are not being acquired by the RCTC, and which is under the same ownership and engaged in the same or similar business activities; Updated Relocation Plan for the SR-91 Corridor Improvement Project 31 • Must not be able to relocate without substantial loss of patronage; and • Contributed materially, as defined by the RCTC, to the income of the displaced person during the two taxable years prior to the displacement. When a fixed payment will precede settlement of a claim for compensation for loss of goodwill under the Eminent Domain Law RCTC, before tendering payment, shall state in writing what portion of the payment, if any, is considered to be compensation for loss of goodwill and shall explain in writing that any payment made pursuant to Code of Civil Procedure, §1263.510 et seq. (the Eminent Domain Law, Chapter 9, Article 6 – “Compensation for Loss of Goodwill”) will be reduced in the same amount. The portion considered to be compensation for loss of goodwill shall not exceed the difference between the fixed payment made and an amount which reasonably approximates the payments for which the displaced person otherwise would be eligible to receive as outlined in Section IV.E.1, above. F. General Information Regarding the Payment of Relocation Benefits Claims and supporting documentation for relocation benefits must be filed with the RCTC no later than 18 months after: • For tenants, the date of displacement; or • For owners, the date of displacement or the date on which final payment for the acquisition of real property is made, whichever is later. The procedure for the preparation and filing of claims and the processing and delivery of payments will be as follows: 1. Claimant(s) will provide all necessary documentation to substantiate eligibility for assistance; 2. Relocation staff will review all necessary documentation including, but not limited to, scopes-of-service, contractor bids, invoices, lease documents and escrow material before reaching a determination as to which expenses are eligible for compensation; 3. Required claim forms will be prepared by relocation staff and presented to the claimant for review. Signed claims and supporting documentation will be returned to relocation staff and submitted to the RCTC; 4. The RCTC will review and approve claims for payment, or request additional information; 5. The RCTC will issue benefit checks to claimants in the most secure, expeditious manner possible; 6. Final payments to residential displacees will be issued after confirmation that the proposed Project premises have been completely vacated, and actual residency at the replacement unit is verified; 7. Receipts of payment and all claim material will be maintained in the relocation case file. Updated Relocation Plan for the SR-91 Corridor Improvement Project 32 G. Last Resort Housing Based on data derived from the surveys and analyses of the occupants in the proposed Project area and costs of replacement housing resources, it is anticipated that “comparable replacement housing” will not be available as required. Specifically, for renters, when the computed replacement housing assistance eligibility exceeds $5,250 or replacement dwelling monthly rental costs (including utilities and other reasonable recurring expenses) exceeds 30 percent of the person’s average monthly income; or, for homeowners, replacement dwellings (including related increased interest costs and other reasonable expenses including closing costs) that exceed the total of the amount of just compensation provided for the dwelling acquired and the statutory maximum $22,500 replacement housing payment available to the person. Therefore, if the proposed Project is to go forward, the RCTC will authorize its funds or funds authorized for the proposed Project to provide housing of last resort. Due to the demonstrated number of available replacement housing resources for the occupants, as shown above in Section III, 1-3, the need to develop a replacement housing plan to produce a sufficient number of comparable replacement dwellings will not be necessary. Rather, funds will be used to make payments in excess of the monetary limits specified in the statute ($5,250 and $22,500); hence, satisfying the requirement that “comparable replacement housing” is available. The RCTC, at its discretion, may opt to pay Last Resort Housing payments in installments or in a lump sum. Recipients of Last Resort rental assistance, who intend to purchase rather than re- rent replacement housing, will have the right to request a lump sum payment of all benefits in the form of down payment assistance. Tenant households receiving periodic payments will have the option to request a lump sum payment of remaining benefits to assist with the purchase of a decent, safe and sanitary dwelling. H. Immigration Status Federal legislation (PL105-117) prohibits the payment of relocation assistance benefits under the Uniform Act to any alien not lawfully present in the United States unless such ineligibility would result in an exceptional and extremely unusual hardship to the alien’s spouse, parent, or child, any of whom is a citizen or an alien admitted for permanent residence. Exceptional and extremely unusual hardship is defined as a significant and demonstrable adverse impact on the health or safety, continued existence of the family unit, and any other impact determined by the RCTC to negatively affect the alien’s spouse, parent, or child. The RCTC may elect to authorize the payment of relocation assistance benefits to any otherwise eligible residential or commercial displacee from non-federally authorized reimbursable funds. In order to track and account for relocation assistance and benefit payments, relocation staff will be required to seek immigration status information from each displacee 18 years and older and non-residential occupants by having them self-certify as to their legal status. Updated Relocation Plan for the SR-91 Corridor Improvement Project 33 I. Relocation Tax Consequences California Government Code §7269 indicates no relocation payment received shall be considered as income for the purposes of the Personal Income Tax Law, Part 10 (commencing with §170 01) of Division 2 of the Revenue and Taxation Code, or the Bank and Corporation Tax law, Part 11 (commencing with §23001) of Division 2 of the Revenue and Taxation Code. Furthermore, federal regulations (49 CFR Part 24, §24.209) also indicate that no payment received under this part (Part 24) shall be considered as income for the purpose of the Internal Revenue Code of 1954, which has been redesignated as the Internal Revenue Code of 1986. The preceding statement is not tendered as legal advice in regard to tax consequences, and displacees should consult with their own tax advisor or legal counsel to determine the current status of such payments. (IRS Circular 230 disclosure: To ensure compliance with requirements imposed by the IRS, we inform you that any tax advice contained in this communication (including any attachments) was not intended or written to be used, and cannot be used, for the purpose of (i) avoiding tax-related penalties under the Internal Revenue Code or (ii) promoting marketing or recommending to another party any matters addressed herein) Updated Relocation Plan for the SR-91 Corridor Improvement Project 34 V. Administrative Provisions A. Holdover Tenancies The RCTC’s acquisition schedule may allow some business and residential tenants to remain in occupancy of RCTC acquired properties for periods as long as six months prior to displacement. It is hoped that by adding additional time to the relocation process, businesses will have greater opportunities to successfully re-establish operations at a new location. Residential tenants will benefit by having greater flexibility to plan a move around school schedules, as an example, or other personal considerations. Holdover tenants will be required to enter into a Rental Agreement with the RCTC and make monthly payments. The RCTC will assume responsibility for all property management functions. Holdover tenants will be required to conform to state and local law and the requirements of RCTC’s Rental Agreement or face eviction in conformance with the RCTC’s eviction policy as set forth in Section V.E. B. Notices Each notice, which the RCTC is required to provide to a property owner or occupant, shall be personally delivered or sent by certified or registered first-class mail, return receipt requested and documented in the case file. Each notice will be written in plain, understandable language. Persons who are unable to read and understand any notice will be provided with appropriate translation and counseling. Each notice will indicate the name and telephone number of a person who may be contacted for answers to questions or other needed help. There are three principal notices: 1. General Information Notice, 2. Notice of Relocation Eligibility, and 3. Ninety-Day Notice The General Information Notice is intended to provide potential displacees with a general written description of the RCTC’s relocation program and basic information concerning benefits, conditions of eligibility, noticing requirements and appeal rights. This notice will be issued at the time the properties are being appraised A Notice of Relocation Eligibility (NOE) will be distributed to each commercial and residential displacee, including off-site owners of rental properties. The NOE to business operators acknowledges the recipient’s eligibility for assistance and right to make claims for relocation assistance benefits. The NOE to residential displacees, both tenants and owner-occupants, contains a determination of eligibility for relocation assistance and a computation of maximum entitlement based on information provided by the affected household and the analysis of comparable replacement properties undertaken by relocation staff. NOEs will be issued promptly following the initiation of negotiations with property owners. Updated Relocation Plan for the SR-91 Corridor Improvement Project 35 No lawful occupant will be required to move without having received at least 90 days advance written notice of the earliest date by which the move will be necessary. The 90-day notice will either state a specific date as the earliest date by which the occupant may be required to move or state that the occupant will receive a further notice indicating, at least 60 days in advance for residential tenants and 30 days in advance for owner-occupants and non-residential occupants, the specific date of the required move. The 90-day notice will not be issued to any residential displacee before a comparable replacement dwelling has been made available. In addition to the three principal notices, relocation staff will issue timely written notification in the form of a Reminder Notice, which discusses the possible loss of rights and sets the expiration date for the loss of benefits to those persons who: 1. Are eligible for monetary benefits, 2. Have moved from the acquired property, and 3. Have not filed a claim for benefits. Reminder Notices will be issued periodically throughout the qualification period. An attempt shall be made to make written contact with all non-responsive displacees no later than within the last six months prior to the filing expiration date. C. Privacy of Records All information obtained from displacees is considered confidential and will not be shared without the consent of the displacee or RCTC or as a requirement of a specific Public Records Request in accordance with State Law. Relocation staff will comply with federal regulations concerning the safeguarding of relocation files and their contents. D. Grievance Procedures A person who is dissatisfied with a determination as to eligibility for benefits, a payment amount, the failure to provide comparable replacement housing referrals, or the RCTC’s property management practices must file an appeal form or any other written form of appeal with the RCTC’s Right-of-Way Program Manager or his/her designee (Hearing Officer). The Hearing Officer shall set a hearing date of no later than 30 days from receipt of the appeal. The person making the appeal shall have: 1. The right to present oral and/or written evidence in support of the appeal, 2. The right to seek legal counsel (hired at the appellant’s sole expense), and 3. The right to seek judicial review once having exhausted all administrative appeal remedies. The Hearing Officer shall render a decision, in writing, within 30 days following the last day of the hearing. A copy of the decision will be mailed, certified or registered, to the appellant and his/her authorized representative and copies filed in the relocation case file. The decision of the Hearing Officer shall be final, and the appellant shall be advised of the right to seek judicial review of the Hearing Officer’s decision. Updated Relocation Plan for the SR-91 Corridor Improvement Project 36 E. Eviction Policy Eviction for cause must conform to applicable state and local law. Any person, who occupies the real property and is in lawful occupancy on the date of the initiation of negotiations, is presumed to be entitled to relocation payments and other assistance, unless the RCTC determines that: 1. The person received an eviction notice prior to the initiation of negotiations and as a result of that notice is later evicted, or 2. The person is evicted after the initiation of negotiations for serious or repeated violation of material term(s) of the lease or occupancy agreement, and 3. In either case, the eviction was not undertaken for the purpose of evading the obligation to make available the payments or other assistance to which a person may otherwise be entitled. F. Citizen Participation The RCTC conducted a public hearing concerning the proposed Project on June 9, 2011. As the process for considering the proposed Project moves forward, the RCTC will observe the following protocol: 1. Provide affected tenants with full and timely access to documents relevant to the relocation program; 2. Encourage meaningful participation in reviewing the relocation plan and monitoring the relocation assistance program; including the proposed Project area occupants, neighborhood groups and community organizations forming a relocation committee; 3. Provide technical assistance necessary to interpret elements of the Relocation Plan and other pertinent materials; 4. Issuance of a general notice concerning the availability of the Plan for public review, as required, 30 days prior to its proposed adoption; 5. The inclusion of written or oral comments concerning the Plan as an attachment (Exhibit J) when it is forwarded to the RCTC Commission for adoption. G. Projected Dates of Displacement The RCTC received approval to initiate early acquisition and relocation activities in late 2010 and those activities will be completed no later than the end of 2014, with construction scheduled to begin in 2014 and end in 2017. H. Estimated Relocation Costs The total budget estimated for relocation-related payments for this Project, including a 10 percent contingency, is as follows: Relocation: $ 10,200,000 Contingency at 10 percent: $ 1,020,000 Total: $ 11,220,000 Updated Relocation Plan for the SR-91 Corridor Improvement Project 37 The estimated relocation budget does not include any payments related to property acquisition, improvements pertaining to realty, or loss of business goodwill. In addition, the budget does not consider the cost of any services necessary to implement the Plan and complete the relocation element of the proposed Project. If the proposed Project is to be implemented, and circumstances arise that should change either the number of residential and business occupants, or the nature of their activity, the RCTC will authorize any additional, compensable funds that may need to be appropriated. The RCTC pledges to appropriate, on a timely basis, the funds necessary to ensure the successful completion of the proposed Project, including funds necessary for last resort housing as indicated in Section IV.G, of this Plan to meet its obligation under the relocation regulations. Updated Relocation Plan for the SR-91 Corridor Improvement Project 38 Exhibit A: Project Aerial Map   Updated Relocation Plan for the SR-91 Corridor Improvement Project 39 Exhibit B: Business Interview Form Client/Project: Case ID: Site Address:Interview Date:□ Unoccupied City, St, ZIP:Interviewer:□ No Contact Business Claimant Information Legal business name (from tax return): Person interviewed (name/title): Ownership type: Business type: Name under which claimant conducts operations (dba):□ Sole Proprietor URA type (list 1): □ Partnership OPC type (list 2): Mailing address (if different):□ Corporation Goods, products or services provided: □ Non-profit Date business established: This site move-in: Business Contacts Information Name: Title/position: Business phone: Cell phone: Fax #: Email: Authority (Y/N): □ Can the person(s) with authority to sign claims and agreements read/understand English? If not, language: Business Professionals Involved (Attorney, Accountant, Broker, Move Planner, Contractor) Name: Title/position: Specialty (list 3): Company: Address: Business phone: Cell phone: Fax #: Email: CC address (Y/N): Business Description and Features Business hours and days of operation: Customer trade area: Is this a franchise business? If yes, is copy of franchise agreement available? Describe any other businesses on site: List any sub-leases: List the same or similar operations owned elsewhere: List residents living on the property: Intend to relocate this business (Y/N): If yes, plans for new market, product or service?: Describe best time to move: Months of year with least inventory: With most inventory: Estimated time it would take to move business: Describe business conducted on the Internet: Describe types of advertising used: List printed materials to become obsolete: Annual gross income: Full-time employees: Annual net income: Part-time employees: © 1980-2010 Overland, Pacific & Cutler, Inc. (01/10) Contact 1 (PRIMARY) Contact 2 Contact 3 Professional 1 Professional 2 Professional 3 Business Relocation Interview Page 1 RCTC SR-91 Corridor Improvement Project Property Site Features Site layout available (provide): Zoning designation:Occupancy status Total building sq.ft.: Parking spaces:□ Month-to-month rental Total land sq.ft.: Loading spaces:□ Lease: expires: options: Area Breakdown Dock spaces:□ Mortgage: balance: Office/retail sq.ft.: Clearance/height:□ Own clear Warehouse/shop sq.ft.: Railroad access: Monthly payment: Yard sq.ft.:Lease copy available?: Business Equipment/Improvements Inventory list available?:Phone system Computer system Electrical (Amps): Type/brand: Number of PCs: 3 phases (Y/N): Server room (# of racks, A/C, power, etc.): Describe plumbing: Age: Voice lines: Other equipment (printers, security, WAP, registers, inventory control, etc): Other special utility: Fax lines: Other lines: Internet service/provider (list 4): Indicate quantity of each type of equipment on site: Bridge crane: Freezer: Sinks: Dry-cleaning plant: Air lines: Jib crane: Walk-in cooler: Clarifier: UST: Water lines: Hood: Walk-in freezer: Boiler: Racking/shelving: Hoist: Refrigerator: Spray booth: Compressor: System furniture: Other significant improvements/machinery/equipment: Leased equipment onsite: Obsolete equipment or equipment that cannot be moved: Permits / Required Specialists List required special permits and licenses with number (provide copy): Operate under Conditional Use Permit? (provide copy) Will CUP be required at a new location?: Assistance required in obtaining any permits/licenses?: Describe any wastewater/air/stack discharge/emissions: List hazardous materials used or stored (including handling and disposal): Needs for outside specialists for a move: © 1980-2010 Overland, Pacific & Cutler, Inc. (01/10)Page 2 Preferred replacement site attributes Relocation area: Property access (RR, dual): Zoning/type of use: Truck access: Lease / purchase: Freeways/arterials proximity: Building size/layout: Public transport access: Single/multistory building: Pedestrian access: Clearance/height: Parking spaces: Lot/yard size: Shipping/receiving type: Special utility needs: Demographic needs: Internet service needs: Traffic count needs: Franchise/ordinance restrictions: Visibility needs: Specific concerns and anticipated move challenges List of any identified replacement sites Address Bldg size Lot size Lease amount Status Broker info 1 2 3 ADDITIONAL INTERVIEW NOTES (explain all special circumstances, including those noted above) 1. URA business type: Business, Farm, Non-Profit 2. OPC business type: Agricultural, Industrial, Office, Retail Sales, Retail Service, Special Purpose (detail online) 3. Professional Specialty: Attorney, Accountant, Broker, Move Planner, Contractor 4. Internet service: DSL, cable, T1, fiber, satellite, other Claimant Name: Date: Signature: © 1980-2010 Overland, Pacific & Cutler, Inc. (01/10) I certify that all information in this survey is true and complete to the best of my knowledge. The information contained herein shall be treated confidential to the extent permitted by law. Page 3 Updated Relocation Plan for the SR-91 Corridor Improvement Project 40 Exhibit C: Residential Interview Form Client/Project: Case ID: Site Address:Total occupants:Interview Date:□ Unoccupied City, St, ZIP:Interviewer:□ No Contact INDIVIDUAL OCCUPANTS (use additional pages as needed) 1. Name: Gender: F M Employer/School: Relationship (list 1): HEAD OF HOUSEHOLD □ ID verified Income srce (list 2): Income/empl. description: Hire/start date: Mo Income: Lawful presence (list 3): Date of birth: Phone/fax/email: Move-in date: Notes/special needs: 2. Name: Gender: F M Employer/School: Relationship (list 1):□ ID verified Income srce (list 2): Income/empl. description: Hire/start date: Mo Income: Lawful presence (list 3): Date of birth: Phone/fax/email: Move-in date: Notes/special needs: 3. Name: Gender: F M Employer/School: Relationship (list 1):□ ID verified Income srce (list 2): Income/empl. description: Hire/start date: Mo Income: Lawful presence (list 3): Date of birth: Phone/fax/email: Move-in date: Notes/special needs: 4. Name: Gender: F M Employer/School: Relationship (list 1):□ ID verified Income srce (list 2): Income/empl. description: Hire/start date: Mo Income: Lawful presence (list 3): Date of birth: Phone/fax/email: Move-in date: Notes/special needs: 5. Name: Gender: F M Employer/School: Relationship (list 1):□ ID verified Income srce (list 2): Income/empl. description: Hire/start date: Mo Income: Lawful presence (list 3): Date of birth: Phone/fax/email: Move-in date: Notes/special needs: 6. Name: Gender: F M Employer/School: Relationship (list 1):□ ID verified Income srce (list 2): Income/empl. description: Hire/start date: Mo Income: Lawful presence (list 3): Date of birth: Phone/fax/email: Move-in date: Notes/special needs: Residential Relocation Interview RCTC / SR-91 Corridor Improvement Project DWELLING HOUSEHOLD Mailing Address:□ Primary residence of all occupants? (If not, explain in notes) City, St, ZIP:□ Can someone read/understand English? If not, language: Carbon Copy Address:Race/Ethnicity: □ American Indian/Alaskan □ Asian City, St, ZIP: □ Black/African-American □ Hawaiian/Pacific Islander Dwelling Type (list 4): □ Hispanic/Latino □ White □ Other □ Mixed Bedrooms: Attic/Utility/Storage: Approx Sq Ft:Subscribe to: □ Land phone □ TV service □ Internet Kitchen: Basement: Bathrooms:□ Home-based business? (describe in notes) Living/family rooms: Garage: Garage Spaces:□ Rent rooms in dwelling? (describe in notes) Dining room: Other/Extra: Carport Spaces:□ On fixed income or public assistance? (describe in Occupants) Den/Office: Parking Spaces:□ Disabled occupants? (describe modifications/needs in Occupants) Total Rooms:Number of cars:Replacement site special needs (mark and describe in Notes) Air Cond: □Central □Wall/Window □Heat Pump □Evap./Swamp □None □ Employment access □ Shopping Heating: □FAU □Radiant □Hot Water □Space Htr □Solar □Heat Pump □ Public transport □ Religious Dwelling Condition: □ Good □ Fair □ Poor □ Medical facilities/services □ Social/Public services Neighborhood Condition: □ Good □ Fair □ Poor □ School needs □ Relatives/Ethnic Amenities:□ Childcare □ Other special needs □ All occupants to move to the same dwelling? (if not, explain in notes) TENANT Replacement dwelling preference: □ Rent □ Buy Rent terms: □ Month-Month □ Lease, months left: Can relocate from: □ Neighborhood □ City □ County □ State □ Rent reduced in exchange for service □ Unit furnished by tenant Preferred relocation areas: Monthly contract rent: $ Security deposit: $ HOMEOWNER Landlord/manager name/ph: Lot Size (sq ft): Date purchased: Age (yrs): □ Written rental agreement available?□ Rent receipts available? □ Own clear with no mortgages/loans # of stories: □ Receiving Section 8 or other housing assistance?1st Loan Information 2nd Loan Information Caseworker name/ph: Lender: Lender: Monthly tenant portion of rent: $ Loan Type (list 5): Loan Type (list 5): Annual family/child care expenses to allow work: $ Current % Rate: Current % Rate: Annual non-reimbursed medical expenses: $ Principal Balance: $ Principal Balance: $ Annual non-reimb. handicapped assistance expenses: $ Original Date: Original Date: Utilities paid by tenant:Pets: Remaining months: Remaining months: □ Gas: $ Monthly P&I payment: Monthly P&I payment: □ Electric: $Energy source: Gas Electr Oil Other MOBILE HOME □ Water: $ Cooking Stove: □ □ □ ____Pad space: □ Rent □ Own Coach: □ Rent □ Own □ Sewer: $ Water Heater: □ □ □ ____Pad rent: $ Make/Model: □ Trash: $ Space Heat: □ □ □ ____Coach length (ft): Year: □ NONE Air Conditioning: □ □ □ ____Coach width (ft): Decal #: Total physical and content rooms to move: INTERVIEW NOTES (explain all special dwelling/household circumstances, including those noted on page 2) 1. Relation: Spouse, Child, Foster Child, Parent, Partner, Sibling, Aunt/Uncle, Cousin, Grandparent, Parent In-Law, Sibling In-Law, Other Relative, Roommate 2. Income: Wages/Salaries, Social Security/Disab/Pension, Child Support/Alimony, Welfare/TANF/AFDC, Family Subsidy/Gift, Business Income, Interest/Dividends, Unempl./Workers Comp, AF pay, EITC, Cash Income, Rent Reduction, Other 3. Legal Status: Unknown, Citizen/National, Lawful Other, NOT Lawful, Decline to provide. 4. Dwelling: SFR, Duplex, 3-Plex, 4-Plex, Apartment, Condo/Townhome, Hotel/Motel, Mobile Home, RV, Other 5. Loans: Fixed Mortgage, Adjustable Mortgage, Interest Only, Fixed HELOC, Adjustable HELOC, Reverse Mortgage, Other Claimant Name: Date: Signature: I certify that all occupants have been identified above and that all information provided for this survey is true and complete to the best of my knowledge. Updated Relocation Plan for the SR-91 Corridor Improvement Project 41 Exhibit D: HUD Income Limits – Riverside County State Income Limits for 2012 5 of 8 See instructions on last page to use income limits to determine applicant eligibility and calculate affordable housing cost and rent County Riverside County 4-Person Area Median Income 63,300 Sacramento County 4-Person Area Median Income 76,100 San Benito County 4-Person Area Median Income 79,300 San Bernardino County 4-Person Area Median Income 63,300 San Diego County 4-Person Area Median Income 75,900 San Francisco County 4-Person Area Median Income 103,000 San Joaquin County 4-Person Area Median Income 66,300 Income Category 1 Extremely Low Very Low Income Lower Income Median Income Moderate Income Extremely Low Very Low Income Lower Income Median Income Moderate Income Extremely Low Very Low Income Lower Income Median Income Moderate Income Extremely Low Very Low Income Lower Income Median Income Moderate Income Extremely Low Very Low Income Lower Income Median Income Moderate Income Extremely Low Very Low Income Lower Income Median Income Moderate Income Extremely Low Very Low Income Lower Income Median Income Moderate Income San Luis Obispo County Extremely Low 4-Person Very Low Income Area Median Income Lower Income 75,400 Median Income Moderate Income 14,100 23,450 37,550 44,300 53,150 16,000 26,650 42,650 53,250 63,900 2 16,100 26,800 42,900 50,650 60,750 18,300 30,450 48,750 60,900 73,050 Number of Persons In Household 3 18,100 30,150 48,250 56,950 68,350 20,600 34,250 54,850 68,500 82,150 4 20,100 33,500 53,600 63,300 75,950 22,850 38,050 60,900 76,100 91,300 5 21,750 36,200 57,900 68,350 82,050 8 23,350 38,900 62,200 73,450 88,100 7 24,950 41,550 66,500 78,500 94,200 24,700 26,550 28,350 41,100 44,150 47,200 65,800 70,650 75,550 82,200 88,300 94,350 98,600 105,900 113,200 16,700 19,050 21,450 23,800 25,750 27,650 29,550 27,800 31,750 35,700 39,650 42,850 46,000 49,200 44,450 50,800 57,150 63,450 68,550 73,650 78,700 55,500 63,450 71,350 79,300 85,650 92,000 98,350 66,600 76,100 85,650 95,150 102,750 110,350 118,000 14,100 23,450 37,550 44,300 53,150 16,900 28,150 45,000 53,150 63,750 16,100 26,800 42,900 50,650 60,750 19,300 32,150 51,400 60,700 72,900 18,100 30,150 48,250 56,950 68,350 21,700 36,150 57,850 68,300 82,000 20,100 33,500 53,600 63,300 75,950 24,100 40,150 64,250 75,900 91,100 21,750 36,200 57,900 68,350 82,050 23,350 38,900 62,200 73,450 88,100 24,950 41,550 66,500 78,500 94,200 26,050 28,000 29,900 43,400 46,600 49,800 69,400 74,550 79,700 81,950 88,050 94,100 98,400 105,700 112,950 23,350 26,650 30,000 33,300 36,000 38,650 41,300 38,850 44,400 49,950 55,500 59,950 64,400 68,850 62,200 71,050 79,950 88,800 95,950 103,050 110,150 72,100 82,400 92,700 103,000 111,250 119,500 127,700 86,500 98,900 111,250 123,600 133,500 143,400 153,250 13,950 23,250 37,150 46,400 55,700 15,850 26,400 42,250 52,800 63,350 15,950 26,550 42,450 53,050 63,650 18,100 30,200 48,250 60,300 72,400 17,950 29,850 47,750 59,650 71,600 20,350 33,950 54,300 67,850 81,450 19,900 33,150 53,050 66,300 79,550 22,600 37,700 60,300 75,400 90,500 21,500 35,850 57,300 71,600 85,900 23,100 38,500 61,550 76,900 92,300 24,700 41,150 65,800 82,200 98,650 24,450 26,250 28,050 40,750 43,750 46,750 65,150 69,950 74,800 81,450 87,450 93,500 97,750 105,000 112,200 8 26,550 44,250 70,800 83,550 100,250 30,200 50,250 80,400 100,450 120,500 31,450 52,350 83,800 104,700 125,600 26,550 44,250 70,800 83,550 100,250 31,850 53,000 84,850 100,200 120,250 44,000 73,300 117,250 135,950 163,150 26,300 43,800 70,050 87,500 105,000 29,850 49,800 79,600 99,550 119,450 See instructions on last page to use these income limits to determine applicant eligibility and calculate affordable housing cost and rent Updated Relocation Plan for the SR-91 Corridor Improvement Project 42 Exhibit E: Mobile Homes for Sale Listing No Street Address Steet Name Sqft City Type (1W, 2W, 3W)Bed.Baths Pad Rent Sale Price 1 4901 Green River Rd. #96 1300 Corona 2W 2 1 $ 800 $ 15,999 2 307 S. Smith Ave. #6 1836 Corona 3W 2 2 $ 760 $ 25,000 3 307 S. Smith Ave. #81 1440 Corona 2W 2 2 $ 760 $ 27,500 4 777 S. Temescal St. #121 1326 Corona 2W 3 2 $ 655 $ 28,999 5 4901 Green River Rd. #240 1440 Corona 2W 3 2 $ 934 $ 29,999 6 1550 Rimpau Ave. #93 1440 Corona 2W 3 2 $ 800 $ 31,900 7 777 S. Temescal St. #116 1344 Corona 1W 3 2 $ 650 $ 31,900 8 13381 Magnolia Ave. #73 1344 Corona 2W 2 2 $ 599 $ 32,000 9 777 S. Temescal St. #70 1680 Corona 2W 3 2 $ 655 $ 34,999 10 21650 Temescal Canyon Rd. #14 1248 Corona 2W 3 2 $ 650 $ 35,000 11 21650 Temescal Canyon Rd. #59 1056 Corona 2W 3 2 $ 600 $ 40,000 12 995 Pomona #85 1848 Corona 2W 3 2 $ 961 $ 46,000 13 13381 Magnolia Ave. #176 1694 Corona 3W 2 2 $ 532 $ 49,900 14 4901 Green River Rd. #94 1568 Corona 2W 3 2 $ 934 $ 53,000 15 1550 Rimpau Ave. #2 1710 Corona 3W 3 2 $ 810 $ 58,000 16 4901 Green River Rd. #313 1650 Corona 2W 4 2 $ 934 $ 58,500 17 307 S. Smith Ave. #77 2176 Corona 3W 2 2 $ 840 $ 60,000 18 21650 Temescal Canyon Rd. #49 1344 Corona 2W 3 2 $ 540 $ 69,000 19 4901 S. Green River Rd. #82 1000 Corona 2W 4 2 $ 69,000 20 1359 Woodbrook Way 1692 Corona 2W 2 2 $ 159,565 21 Mobile Homes Express 1344 Corona 2W 3 2 24,900$ 22 Mobile Homes Express 1392 Riverside 2W 3 2 49,500$ 23 Mobile Homes Express 1152 Riverside 2W 3 2 15,000$ 24 Mobile Homes Express 1056 Riverside 2W 3 2 39,900$ 25 Mobile Homes Express 1296 Riverside 2W 3 2 48,250$ 26 Mobile Homes Express 1040 Ontario 2W 3 2 57,400$ 27 Corona 2W 4 1.5 57,000$ 28 Corona 2W 3 2 85,000$ 29 Corona 2W 3 2 50,000$ 30 21st Mortgage Corona 3 2 35,000$ 31 21st Mortgage Corona 3 2 29,900$ 32 21st Mortgage Riverside 3 2 74,900$ 33 1440 Riverside 2W 3 2 22,500$ 34 Mira Loma 2W 3 2 34,900$ 35 1440 Chino Hills 2W 2 2 56,000$ 36 21st Mortgage Ontario 2 2 39,900$ 37 21st Mortgage Riverside 3 2 49,900$ 38 21st Mortgage Riverside 2 2 25,000$ 39 Riverside 3 2 70,000$ 40 980 Riverside 2W 2 2 8,500$ 41 Riverside 2W 2 2 26,500$ 42 Riverside 2W 2 2 23,000$ 43 Montclair 3 2 125,000$ 44 Riverside 1W 1 1 19,000$ 45 25350 Santiago Dr. #92 1560 Moreno Valley 2W 4 2 425$ 62,900$ 46 25350 Santiago Dr. #164 Moreno Valley 2W 4 3 447$ 67,000$ 47 2663 Murrieta Rd.1980 Perris 4 2 -$ 120,000$ 48 17755 Carroll St.2280 Perris 3W 4 2 -$ 138,900$ 49 3701 Filmore #51 Riverside 2W 4 2 646$ 54,900$ 50 4901 Green River Rd. #205 1344 Corona 1W 2 2 934$ 49,900$ 51 33136 Olive Tree Ave.800 Lake Elsinore 1W 2 2 -$ 34,900$ 52 31750 Machado #27 1440 Lake Elsinore 2W 2 2 405$ 19,000$ 53 31750 Machado #59 1100 Lake Elsinore 2W 2 2 405$ 25,000$ 54 21062 Sedco Blvd.1140 Lake Elsinore 2W 2 2 -$ 59,000$ 55 27701 Murrieta Rd. #5 Menifee 2W 2 2 450$ 19,900$ 56 27601 Sun City Blvd. #11 1673 Menifee 3W 2 2 429$ 22,000$ 57 27701 Murrieta Rd. #145 1736 Menifee 3W 2 2 468$ 23,000$ 58 27601 Sun City Blvd. #73 1296 Menifee 2W 2 2 429$ 29,900$ 59 27250 Murrieta Rd. #20 1232 Menifee 2W 2 2 530$ 38,000$ 60 27250 Murrieta Rd. #370 1320 Menifee 2W 2 2 510$ 39,900$ 61 27250 Murrieta Rd. #28 960 Menifee 2W 2 2 500$ 39,900$ 62 27601 Sun City Blvd. #234 1344 Menifee 2W 2 2 391$ 59,000$ 63 25343 Phillips St.1536 Perris 2W 2 2 -$ 139,000$ 64 3700 Buchanan #8 720 Riverside 1W 2 2 560$ 9,900$ 65 3661 Pacific Ave. #6 728 Riverside 1W 2 1 325$ 10,000$ 66 3700 Buchanan #105 1344 Riverside 2W 2 2 525$ 17,000$ 67 3701 Fillmore St. #147 784 Riverside 1W 2 1 749$ 18,500$ 68 4080 Pedley Rd. #229 Riverside 2W 2 2 798$ 19,000$ 69 3700 Buchanan Ave. #145 880 Riverside 2W 2 2 560$ 21,300$ 70 3500 Buchanan Ave. #16 1440 Riverside 2W 2 2 575$ 23,000$ 71 3883 Buchanan St. #89 1400 Riverside 2W 2 2 518$ 24,900$ 72 4000 Pierce #227 1440 Riverside 2W 2 2 700$ 24,900$ 73 3500 Buchanan Ane. #166 1440 Riverside 2W 2 2 575$ 25,000$ 74 6130 Camino Real #301 1800 Riverside Other 2 2 765$ 25,990$ 75 8110 Mission Blvd. #13 800 Riverside 2W 2 2 495$ 27,995$ 76 1560 Massachusetts Ave. #40 1120 Riverside 1W 2 2 550$ 28,000$ 77 4000 Pierce #235 Riverside 2W 2 2 670$ 28,500$ 78 4000 Pierce St. #283 1440 Riverside 2W 2 1 700$ 28,500$ 79 4000 Pierce St. #92 Riverside 2W 2 2 670$ 29,500$ 80 3500 Buchanan Ave. #180 1536 Riverside 2W 2 2 575$ 29,700$ 81 3500 Buchanan Ave. #106 1440 Riverside 2W 2 2 575$ 35,000$ 82 128 Sir Damas Blvd. #128 1440 Riverside 2W 2 2 700$ 38,900$ 83 35 Round Table Rd. #35 1368 Riverside 1W 2 2 625$ 40,000$ 84 4000 Pierce St. #17 1440 Riverside Other 2 2 700$ 47,900$ 85 3700 Buchanan Ave. #97 1120 Riverside 2W 2 2 538$ 50,000$ 86 9391 California Ave. #52 1960 Riverside 3W 2 2 550$ 54,000$ 87 4000 Pierce St. #18 1267 Riverside 2W 2 2 700$ 60,000$ 88 3500 Buchanan Ave. #221 1248 Riverside 2W 2 2 675$ 69,000$ 89 3500 Buchanan Ave. #230 1368 Riverside 2W 2 2 675$ 69,900$ 90 3500 Buchanan Ave. #232 1427 Riverside 2W 2 2 675$ 79,000$ 91 3500 Buchanan Ave. #228 1440 Riverside 2W 2 2 675$ 79,900$ 92 3500 Buchanan Ave. #227 1440 Riverside 2W 2 2 675$ 89,900$ Updated Relocation Plan for the SR-91 Corridor Improvement Project 43 Exhibit F: Homes for Sale Listing No Street Address Steet Name Sqft City Bed.Baths Sale Price 1 1311 Massachusetts Ave. #201 604 Riverside 1 1 70,000$ 2 4769 Grove Ave.728 Riverside 1 1 71,300$ 3 9505 Arlington Ave. #33 550 Riverside 1 1 75,900$ 4 9505 Arlington Ave. #49 550 Riverside 1 1 78,000$ 5 1341 Massachusetts Ave. #102 604 Riverside 1 1 79,000$ 6 2383 9th St.883 Riverside 1 1 139,900$ 7 3765 Blair St.620 Corona 2 1 105,000$ 8 7855 Minnesota Rd.700 Corona 2 1 129,000$ 9 3870 Grant St.846 Corona 2 1 139,000$ 10 917 W 10th St.720 Corona 2 1 159,000$ 11 100 Juneberry Cir.1340 Corona 2 2 279,900$ 12 23968 Steelhead Dr.1290 Corona 2 2 295,000$ 13 4070 Crown Ranch Rd.1082 Corona 2 1 299,500$ 14 2904 2nd St.1054 Norco 2 1 186,000$ 15 3389 Temescal Ave.1170 Norco 2 2 235,000$ 16 18920 Gentian Ave.1344 Riverside 2 2 73,000$ 17 1750 Columbia Ave.584 Riverside 2 1 109,000$ 18 3862 Everest Ave.968 Riverside 2 1 129,900$ 19 2575 Jackson St.1240 Riverside 2 2 165,000$ 20 3653 Briarvale St.1088 Corona 3 2 214,950$ 21 1359 Cresta Rd.1489 Corona 3 2 237,500$ 22 1007 Wakefield Ave.1290 Corona 3 2 239,000$ 23 20252 Layton St.2099 Corona 3 3 249,000$ 24 19597 Francisca Ave.2720 Corona 3 3 249,900$ 25 2063 Picadilly Way 1271 Corona 3 3 249,900$ 26 500 Clinton Cir.1272 Corona 3 2 249,900$ 27 20137 Klyne St.1709 Corona 3 2 249,900$ 28 1133 Redwood St.960 Corona 3 2 250,000$ 29 1650 S Main St.1937 Corona 3 2 258,000$ 30 1058 W 10th St.1362 Corona 3 2 265,000$ 31 20255 Winton Rd.2149 Corona 3 2 269,900$ 32 734 Viewtop Ln.1192 Corona 3 2 275,000$ 33 4616 Feather River Rd.2091 Corona 3 3 275,000$ 34 2107 Lincoln Ave.1407 Corona 3 2 280,000$ 35 110 E Kendall St.1494 Corona 3 2 289,000$ 36 1371 Sonnet Hill Ln.1575 Corona 3 3 289,900$ 37 781 Atlantic Dr.1551 Corona 3 3 295,000$ 38 878 Pointe Vista Cir.1504 Corona 3 3 299,000$ 39 20250 State St.2316 Corona 3 3 299,000$ 40 1627 Conifer Cir.1342 Corona 3 2 299,900$ 41 3131 Melanie Ave.1144 Norco 3 2 207,500$ 42 219 8th St.1592 Norco 3 2 299,999$ 43 5753 Norwood Ave.1112 Riverside 3 1 89,900$ 44 7270 Pontoosuc Ave.1054 Riverside 3 1 95,000$ No Street Address Steet Name Sqft City Bed.Baths Sale Price 45 5771 Sky Meadow St.1105 Riverside 3 2 110,000$ 46 4533 Jones Ave.1158 Riverside 3 2 128,700$ 47 11934 Knoefler Dr.1000 Riverside 3 1 149,900$ 48 8045 Magnolia Ave.1080 Riverside 3 2 149,900$ 49 12099 Knoefler Dr.1150 Riverside 3 1 149,900$ 50 11157 Norwood Ave.1053 Riverside 3 2 150,000$ 51 4650 Marathon Pl.1160 Riverside 3 2 150,000$ 52 3152 Antietam Dr.1000 Riverside 3 2 156,800$ 53 2875 Blackstone Ave.1044 Riverside 3 1 157,500$ 54 3952 Manchester Pl.1025 Riverside 3 2 164,900$ 55 3958 San Marcos Ave.1214 Riverside 3 2 175,000$ 56 10131 Hedrick Ave.1180 Riverside 3 2 180,000$ 57 4194 Sherman Dr.1057 Riverside 3 2 184,900$ 58 3705 Mimosa St.1260 Riverside 3 2 184,900$ 59 4290 Monticello Ave.1319 Riverside 3 2 188,500$ 60 10900 Finchley Ave.1410 Riverside 3 2 188,500$ 61 4076 Madrona Rd.1192 Riverside 3 2 189,000$ 62 14125 Four Winds Dr.1583 Riverside 3 2 195,000$ 63 8922 Glencoe Dr.1083 Riverside 3 2 200,000$ 64 8258 Garfield St.1582 Riverside 3 2 205,000$ 65 12908 Reindeer Ct.1465 Riverside 3 3 207,777$ 66 4227 Lido Dr.1122 Riverside 3 2 209,900$ 67 8745 Pembroke Ave.1415 Riverside 3 2 209,990$ 68 8778 Brunswick Ave.1134 Riverside 3 2 209,995$ 69 3928 San Mateo Ave.1145 Riverside 3 1 210,000$ 70 8466 Lucas St.1102 Riverside 3 2 215,000$ 71 9282 Maywood Way 1618 Riverside 3 3 215,000$ 72 3270 Layton Ct.1737 Riverside 3 3 220,000$ 73 9027 Delano Dr.1215 Riverside 3 2 229,000$ 74 9869 Primrose Dr.1050 Riverside 3 2 229,900$ 75 12715 Tehama Cir.1540 Riverside 3 2 245,000$ 76 10423 Stover Ave.1500 Riverside 3 2 249,000$ 77 14305 Harvey Ln.2200 Riverside 3 3 249,900$ 78 4301 Van Buren Blvd.1350 Riverside 3 2 250,000$ 79 7730 Lagos Ln.1150 Corona 3 1 139,900$ 80 1132 Railroad St.897 Corona 3 1 165,000$ 81 862 Pathfinder Way 1323 Corona 3 3 199,000$ 82 26710 Dry Falls Dr.1439 Corona 3 3 210,000$ 83 13893 Moqui Way 1451 Corona 3 3 215,000$ 84 13165 Lucky Spur Ln.1591 Corona 3 3 225,000$ 85 1774 Via Del Rio 1272 Corona 3 1 225,000$ 86 13373 Cloudburst Dr.1320 Corona 3 2 235,000$ 87 27117 Almondwood Dr.1876 Corona 3 3 239,000$ 88 1133 Redwood St.960 Corona 3 2 239,990$ 89 11116 Pinecone St.2253 Corona 3 3 245,000$ 90 13654 Silver Stirrup Dr.2477 Corona 3 2 249,000$ No Street Address Steet Name Sqft City Bed.Baths Sale Price 91 20137 Klyne St.1709 Corona 3 2 249,900$ 92 27325 Buffalo 1798 Corona 3 3 255,000$ 93 1311 Sonnet Hill Ln.1348 Corona 3 2 259,900$ 94 13520 Palomino Creek Dr.1592 Corona 3 3 260,000$ 95 615 Victoria Ave.1716 Corona 3 2 264,000$ 96 734 Viewtop Ln.1192 Corona 3 2 265,000$ 97 1058 W 10th St.1362 Corona 3 2 265,000$ 98 470 Niagara Ct.1696 Corona 3 3 269,900$ 99 1276 Willowspring Ln.1486 Corona 3 3 270,000$ 100 1733 Fraser Cir.1312 Corona 3 2 275,000$ 101 2107 S. Lincoln Ave.1407 Corona 3 2 280,000$ 102 3429 Birchleaf Dr.2121 Corona 3 3 280,000$ 103 110 E. Kendall St.1494 Corona 3 2 289,000$ 104 938 Cheyenne Rd.1545 Corona 3 2 299,900$ 105 2798 Cape Dr. 1754 Corona 3 2 310,000$ 106 3001 Astoria St.2249 Corona 3 2 314,900$ 107 3207 Mountain Pass Dr.2187 Corona 3 2 314,900$ 108 1499 Greenbriar Ave. 1904 Corona 3 2 319,000$ 109 23737 Bella Vista Rd. 1766 Corona 3 2 320,000$ 110 25462 Hyacinth St. 2717 Corona 3 2 329,000$ 111 19888 Grant St. 1808 Corona 3 2 334,000$ 112 21705 Temescal Cyn Rd.1651 Corona 3 2 335,000$ 113 2715 Twinleaf 1742 Corona 3 2 335,000$ 114 1227 Lakeport Lane 2089 Corona 3 2 337,900$ 115 11333 Magnolia St.2699 Corona 3 2 339,000$ 116 24460 Wildhorse 2483 Corona 3 2 340,000$ 117 767 N Temescal St.2830 Corona 3 2 349,900$ 118 915 Mandevilla Way 1788 Corona 3 2 360,000$ 119 7063 Blackbird Ln 2591 Corona 3 2 364,900$ 120 4098 Bennett Ave.2316 Corona 3 2 380,500$ 121 19414 Dry Gulch Rd.1778 Corona 3 2 399,499$ 122 27540 Acorn Dr. 1495 Corona 4 2 215,000$ 123 13161 Hitching Rail Cir 1732 Corona 4 3 249,000$ 124 808 E . Grand Blvd.1609 Corona 4 2 249,999$ 125 19870 Temescal Cyn Rd.1320 Corona 4 2 255,000$ 126 998 Blossom Hill Dr. 1442 Corona 4 2 259,000$ 127 1479 Avenida Del Vis 1440 Corona 4 2 259,900$ 128 9086 Fallbrook Cyn Dr.1710 Corona 4 3 269,900$ 129 1214 S . Belle 1952 Corona 4 2 273,000$ 130 19941 Katy Way 1542 Corona 4 2 274,000$ 131 1314 S. Victoria 1393 Corona 4 1 284,999$ 132 1048 Sunbeam Lane 1886 Corona 4 3 289,900$ 133 2990 McDonald Lane 2172 Corona 4 3 290,000$ 134 11512 Magnolia St. 2699 Corona 4 4 290,000$ 135 23288 Daisy Dr.2156 Corona 4 3 299,900$ 136 815 Alder St. 1653 Corona 4 2 304,900$ No Street Address Steet Name Sqft City Bed.Baths Sale Price 137 11487 Tesota Loop St. 3317 Corona 4 4 305,000$ 138 11405 Magnolia St. 2699 Corona 4 4 310,000$ 139 7291 Liberty Ave. 2064 Corona 4 3 315,000$ 140 1816 Turquoise Dr.1873 Corona 4 3 319,000$ 141 1790 Greenview Ave. 2438 Corona 4 3 319,000$ 142 173 Tamarack Dr. 2172 Corona 4 3 319,900$ 143 6327 Kaisha St. 3543 Corona 4 3 330,000$ 144 3497 Braemar Ln.2057 Corona 4 3 330,000$ 145 1465 Mountain Vista Dr. 2286 Corona 4 3 334,900$ 146 1378 Coral Gables Cir 2417 Corona 4 3 339,900$ 147 1137 Archer Cir 3522 Corona 4 3 349,000$ 148 1420 San Almada Rd. 2002 Corona 4 3 350,000$ 149 2435 Antelope Dr. 1784 Corona 4 3 350,000$ 150 1021 Golden Meadow Dr.2073 Corona 4 3 355,000$ 151 1175 Rosemary Cir 2332 Corona 4 3 359,900$ 152 1235 Shady Hill Rd.2159 Corona 4 3 360,000$ 153 2941 Mountain Pleasant Way 2240 Corona 4 3 369,000$ 154 4479 Cabot Dr. 3413 Corona 4 3 369,900$ 155 567 Silverhawk Dr. 3017 Corona 4 3 379,000$ 156 7872 Retreiver St. 2559 Corona 4 2 379,800$ 157 27792 Red Cloud Rd. 3089 Corona 4 3 380,000$ 158 2727 Cherrybark Lane 2213 Corona 4 3 382,500$ 159 820 Mandevilla Way 2481 Corona 4 4 384,900$ 160 14266 Wolfhound St. 2795 Corona 4 3 391,000$ 161 848 Allegre Dr. 2615 Corona 4 3 395,000$ 162 2550 Heritage 2603 Corona 4 3 399,000$ 163 25634 Red Hawk 3189 Corona 4 3 399,990$ 164 3280 Limnerick Ln.2966 Corona 4 4 400,000$ 165 25499 Foxglove Ln 3315 Corona 4 4 415,990$ 166 6816 Perkins Ct. 2798 Corona 4 3 423,000$ 167 4525 Garden City Ln.2796 Corona 4 3 425,000$ 168 1005 E. Grand Blvd. 3000 Corona 4 3 429,900$ 169 8699 Hunt Cyn Rd. 3629 Corona 4 4 430,000$ 170 1898 Jupiter Hills Rd. 2740 Corona 4 3 449,900$ 171 2462 Griffin Way 3426 Corona 4 3 450,000$ 172 3621 Elker Rd. 3218 Corona 4 3 459,900$ 173 1571 E . Chase Dr. 2868 Corona 4 4 469,000$ 174 1515 Beacon Ridge Way 2868 Corona 4 4 475,000$ 175 8808 Gentle Wind Dr. 3400 Corona 4 4 484,900$ 176 1414 Folson Cir 3215 Corona 4 4 490,765$ 177 1854 Willowbluff Dr. 2664 Corona 4 3 495,000$ 178 3785 Fremont Dr. 3704 Corona 4 4 499,900$ 179 2005 Taylor Ave. 2048 Corona 5 2 274,000$ 180 2294 Avenida Del Vis 1924 Corona 5 3 289,900$ 181 13563 Silver Stirrup Dr. 3089 Corona 5 3 289,900$ 182 1625 Taylor Ave. 1707 Corona 5 2 299,500$ No Street Address Steet Name Sqft City Bed.Baths Sale Price 183 11124 Larkspur Ct.3675 Corona 5 4 318,200$ 184 2945 Wild Springs Lane 2734 Corona 5 3 325,000$ 185 1075 Auburndale St. 2295 Corona 5 3 329,000$ 186 660 Stoney Creek Cir 2410 Corona 5 3 329,900$ 187 414 Burr St. 1707 Corona 5 2 339,900$ 188 711 Broadmoor Crt.2268 Corona 5 3 349,900$ 189 7067 Meadow Ridge 2642 Corona 5 3 349,999$ 190 13469 Pheasant Way 3149 Corona 5 4 354,900$ 191 485 Wellington Cir 2935 Corona 5 3 360,000$ 192 2345 S. Cota Ave. 2904 Corona 5 3 363,000$ 193 3460 Grand Teton Dr. 3131 Corona 5 3 367,000$ 194 2975 Veranda Ln.3250 Corona 5 3 369,000$ 195 5745 Westchester Way 3185 Corona 5 3 369,000$ 196 2242 Prescott Cir 2129 Corona 5 3 374,900$ 197 3605 Santa Elena Cir 2756 Corona 5 3 384,000$ 198 13983 Topeka Ct. 3450 Corona 5 4 385,000$ 199 3955 Belfry Cir 3205 Corona 5 3 389,000$ 200 2217 S. Lincoln Ave. 2432 Corona 5 3 389,000$ 201 874 Ringdahl Cir 2432 Corona 5 4 389,900$ 202 1275 Emeraldport St. 2355 Corona 5 3 389,900$ 203 14234 Grayling Dr. 3000 Corona 5 3 395,500$ 204 13619 Golden Eagle Ct. 3194 Corona 5 3 399,000$ 205 25359 Coral Canyon Rd. 3675 Corona 5 4 399,900$ 206 641 Jordan Ct. 3500 Corona 5 4 417,000$ 207 13995 Almond Grove Ct. 2990 Corona 5 3 423,750$ 208 2385 Judith Cir 2765 Corona 5 3 425,000$ 209 12725 Kristi Lynn Ct 3575 Corona 5 5 429,888$ 210 25526 Folxglove Lane 3699 Corona 5 4 429,900$ 211 25509 Foxglove Ln 3855 Corona 5 4 435,990$ 212 979 Chinotto Cir 2967 Corona 5 3 439,000$ 213 4414 Driving Range Rd.2942 Corona 5 3 439,900$ 214 8772 Gentle Wind Dr. 3386 Corona 5 3 469,999$ 215 1324 Alee Cir 3169 Corona 5 3 470,990$ 216 3780 Rafferty Cir 3036 Corona 5 3 474,900$ 217 3131 Diamond View St. 3342 Corona 5 3 480,000$ 218 1300 Alee Cir 3302 Corona 5 4 492,900$ 219 3980 Belfry Cir 3203 Corona 5 3 499,000$ 220 7366 Piute Creek Dr. 4200 Corona 5 5 499,500$ Updated Relocation Plan for the SR-91 Corridor Improvement Project 44 Exhibit G: Commercial For Sale Listing No Street  Address Steet Name Unit # (if  available) City Type  Square  Feet Sales Price 1 320 Bonnie Cir. 1 Corona Office 6,900 150 2 4222 Green River Corona Office 6,670 149.77 3 225 Corona Dr. Corona Manufacturing 64,000 371.87 4 803 Parkridge Ave. Corona Warehouse 28,923 85.01 5 240 Teller St. Corona Warehouse 49,848 88 6 12785 Magnolia Ave. Corona Industrial 15,111 102.5 7 400 Corona Dr. Corona Manufacturing 60,000 396.66 8 9031 Pulsar Ct. Corona Warehouse 37,729 N/A 9 550 Monica Cir. Corona Manufacturing 210,044 89 10 2420 Railroad St. Corona Warehouse 25,707 95 11 1802 Pomona Rd. Corona Warehouse 11,915 110 12 1220 Railroad St. Corona Warehouse 52,758 81.29 13 430 Leroy Dr. Corona Industrial 6,262 110 14 1148 California Ave. Corona Warehouse 17,840 115 15 167 Via Trevizio Corona Industrial 17,870 105 16 313 N. Garfield Ave. Corona Warehouse 2,326 162.94 17 341 Delilah St. Corona Warehouse 61,268 N/A 18 1900 2nd. St Corona Warehouse 128,624 79 19 255 N. Lincoln Ave. Corona Office 12,900 151.16 20 1531 Pomona Rd. Corona Manufacturing 57,971 97 21 9169 Pulsar Ct. Corona Warehouse 11,352 99 22 9163 Pulsar Ct. Corona Warehouse 11,352 N/A 23 9097 Pulsar Ct. Corona Warehouse 43,928 N/A 24 9121 Pulsar Ct. Corona Warehouse 11,352 N/A 25 9145 Pulsar Ct. Corona Warehouse 11,352 N/A 26 13345 Estelle St. Corona Manufacturing 10,944.00 110 27 19965 Temescal Canyon Rd. Corona Manufacturing 3,552 274.49 28 13375 Estelle St. Corona Manufacturing 23,040 82 29 2951 Doherty St. Corona Warehouse 25,000 76 30 1138 W. Rincon St. Corona Manufacturing 374,760 160.1 31 423 Jenks Cir. Corona Flex Space 20,600 155.33 Updated Relocation Plan for the SR-91 Corridor Improvement Project 45 Exhibit H: Business Informational Brochure  RCTC Representative:    Overland, Pacific & Cutler, Inc. 2280 Market Street, Suite #200 Riverside, CA  92501 (951) 683‐2353 Relocation Assistance ‐ Information  Brochure for Businesses & Non‐Profits Spanish speaking representatives are available.  Si necesita esta información en español, por favor llame a su representante. Riverside County  Transportation Commission State Route 91  Corridor Improvement Project  The property on which you conduct your business is in an area that is being proposed for the widening of SR‐91 by RCTC.  If and when the project proceeds, and it is necessary for you to move from your current location, you may be eligible for certain benefits. You will be notified in a timely manner as to the date by which you must move. Please read this brochure, as it will be helpful to you in determining your eligibility and the amount of the relocation benefits you may receive under the law. You will need to provide adequate and timely information to determine your relocation benefits. The information is voluntary, but if you choose not to provide it, you may risk not receiving the benefits or it may delay your payment. We suggest you save this informational brochure for reference. RCTC has retained the professional firm of Overland, Pacific & Cutler, Inc. (OPC) to provide relocation assistance to you.  The firm is available to explain the program and benefits. Their address and telephone number is listed on the back cover. As part of this relocation process, we strongly suggest that you  do not move prematurely. Please note, that this is not a notice to vacate the premises. However, if you desire to move sooner than required, you must contact your representative with Overland, Pacific & Cutler, Inc., so you will not jeopardize any benefits.  This is a general informational brochure only, and is not intended to give a detailed description of either the law or regulations pertaining to RCTC’s relocation assistance program. Please continue to pay your rent to your current landlord, otherwise you may be evicted and jeopardize the relocation benefits to which you may be entitled to receive.  Once RCTC acquires the property, you may be required to pay rent to RCTC instead of your current landlord. Introduction NOTES  marketing or recommending to another party any matters addressed herein) Pursuant to the Public Law 105‐117, in order to be eligible to receive non‐residential relocation assistance and benefits in federally‐funded projects, in the case of an unincorporated business, each owner must be either a citizen or national of the United States, or an alien who is lawfully present in the United States. The owner of a sole proprietorship and all owners of a partnership must provide information regarding their lawful presence in the United States, and a for‐profit or a non‐profit corporation must certify that it is authorized to conduct business within the United States. Owners of sole proprietorships or partnerships, who are not lawfully present in the United States, or who decline to provide this information, are not eligible for relocation assistance, unless such ineligibility would result in an exceptional and extremely unusual hardship to the alien’s spouse, parent, or child, any of whom is a citizen or an alien admitted for permanent residence. Exceptional and extremely unusual hardship is defined as significant and demonstrable adverse impact on the health or safety, continued existence of the family unit, and any other impact determined by RCTC to negatively affect the alien’s spouse, parent or child. Relocation benefits will be prorated to reflect the number of owners with certified lawful presence in the United States. Additional Information If you have further questions after reading this brochure, please contact RCTC’s relocation representative at Overland, Pacific & Cutler. 16. Lawful Presence Requirement A. Advisory assistance to explain the relocation process, the related eligibility requirements, the procedures for obtaining reimbursement for moving expenses and referrals to suitable replacement locations B. Payment for your moving expenses. You may receive one of the following options:  Option A: A Payment for Actual Reasonable Moving                                     and Related Expenses;  or  Option B:  A Fixed Payment In Lieu of a Payment for                                            Actual Moving and Related Expenses C. Other help to reestablish your business and minimize the impact of the move including help in preparing claim forms to request relocation payments. If you disagree with RCTC's decision as to your right to a relocation payment, or the amount of the payment, you may appeal that decision. Some General Questions Ordinarily, eligibility begins on the date the owner of the property receives RCTC's initial written offer to purchase a property. Therefore, you should not move before that date or before receiving a notice of eligibility. If you do, you may not be eligible for relocation assistance.  1. Summary of Available Relocation Assistance:  2. How Will I Know I Am Eligible for Relocation Assistance?  You will be contacted at an early date and personally interviewed by a representative of RCTC. The interviewer will want to get information about your current operation, as well as identify movable personal property and non‐movable improvements, determine your needs and preferences for a replacement location, estimate the time required to vacate the premises and your need for advance payments.  During the interview, you may want to discuss other issues relative to your move.  It is to your advantage to provide as much information as possible so that RCTC, through its relocation representative, can assist you in moving.  Every reasonable effort will be made to provide you with sufficient time to find a suitable replacement location and reestablish your business. If possible, a mutually agreeable date for the move will be worked out. Unless there is an urgent need for the property (e.g., your occupancy would present a health or safety emergency), you will not be required to move without at least 90 days advance written notice. It is important, however, that you keep in close contact with your relocation representative so that you are aware of the time schedule for carrying out the project and the approximate date by which you will have to move. 3. How Will RCTC Know How Much Help I Need? 4. How Soon Will I Have to Move? Any person aggrieved by a determination as to eligibility for, or the amount of, a payment authorized by RCTC’s Relocation Assistance Program may have the appeal application reviewed by RCTC in accordance with its appeals procedure. Complete details on appeal procedures are available upon request from RCTC. California Government Code Section 7269 indicates no relocation payment received shall be considered as income for the purposes of the Personal Income Tax Law, Part 10 (commencing with Section 170 01) of Division 2 of the Revenue and Taxation Code, or the Bank and Corporation Tax law, Part 11 (commencing with Section 23001) of Division 2 of the Revenue and Taxation Code. Furthermore, federal regulations (49 CFR Part 24, Section 24.209) also indicate that no payment received under this part (Part 24) shall be considered as income for the purpose of the Internal Revenue Code of 1954, which has been designated as the Internal Revenue Code of 1986. The preceding statement is not tendered as legal advice in regard to tax consequences, and displacees should consult with their own tax advisor or legal counsel to determine the current status of such payments. (IRS Circular 230 disclosure: To ensure compliance with requirements imposed by the IRS, we inform you that any tax advice contained in this communication (including any attachments) was not intended or written to be used, and cannot be used, for the purpose of (i) avoiding tax‐related penalties under the Internal Revenue Code or (ii) promoting 15. Tax Status of Relocation Benefits 14. Appeals  You must file a claim for a relocation payment. RCTC’s relocation representative will provide you with the required claim forms, assist you in completing them, and explain the type of documentation that you must submit in order to receive your relocation payments. If you must pay any relocation expenses before you move, discuss your financial needs with RCTC. You may be able to obtain an advance payment.  An advance payment may be placed in "escrow" to ensure that the move will be completed on a timely basis. If you are a tenant, you must file your claim within 18 months after the date you move. If you own the property, you must file within 18 months after the date you move, or the date you receive the final acquisition payment, whichever is later.  However, it is to your advantage to file as soon as possible after you move. The sooner you submit your claim, the sooner it can be processed and paid. If you are unable to file your claim within 18 months, RCTC may extend this period. You will be paid promptly after you file an acceptable claim. If there is any question regarding your right to a relocation payment or the amount of the payment, you will be notified, in writing, of the problem and the action you may take to resolve the matter. No person shall on the grounds of race, color, national origin or sex, be excluded from participation in, be denied the benefits of, or be subjected to discrimination under RCTC’s relocation assistance program pursuant to Title VI of the Civil Rights Act of 1964, Title VIII of the Civil Rights Act of 1968, and other applicable state and federal anti‐discrimination laws. You may file a complaint if you believe you have been subjected to discrimination. For details, contact RCTC.  13. Non‐Discrimination If you reach a voluntary agreement to sell your property to RCTC, you most likely will not be required to move before you receive the agreed purchase price.  You may be required to pay a fair market rent to RCTC for the period between the acquisition of your property and the date that you move.  Your rent and the terms of your tenancy will be generally the same as any preexisting arrangement. Your relocation representative will provide you with current and continuing information on available replacement locations that meet your needs.  You will also be provided with the names of local real estate agents and brokers who can assist you in finding the type of replacement location you require. However, you are urged to take an active role in identifying, and relocating to, a location of your choice.  No one knows your needs better than you do.  You will want a facility that provides sufficient space for your planned activities.  You will also want to ensure that there are no zoning or other requirements which will unduly restrict your planned operations. Your relocation representative will explain which kind of moving costs are eligible for reimbursement and which are not eligible.  That will enable you to carry out your move in the most advantageous manner. 5. I Own the Property.  Will I Be Paid for It Before I Have to Move? 6. Will I have to Pay Rent to RCTC Before I Move?  7. How Will I Find a Replacement Location?  In addition to help in finding a suitable replacement location,  your relocation representative will help you secure the services of outside specialists, as necessary,  to plan the move, as well as provide assistance during the actual move and in the reinstallation of machinery and/or other personal property.  The range of services depends on the needs of the business potentially being displaced.  You should ask RCTC’s relocation representative to tell you about the specific services that will be available to you. Before you make any arrangements to move, notify RCTC’s relocation representative, in writing, of your intention to move.  This should be done at least 30 days before the date you begin your move. RCTC will discuss the move with you and advise you of the relocation payment (s) for which you may be eligible, the requirements to be met, and how to obtain a payment.  If you decide to discontinue your business rather than reestablish it, you may still be eligible to receive a payment.  Contact RCTC’s relocation representative and discuss your decision to discontinue your business.  You will be informed of the payment, if any, for which you may be eligible, the requirements to be met, and how to obtain your payment.  8. What Other Assistance Will Be Available to Help Me? 9. I have a Replacement Location and Want to Move. What Should I Do? 10. I Plan to Discontinue My Business Rather than Move.  What Should I Do? For a qualified non‐profit organization, gross earnings may include membership fees, class fees, cash donations, tithes and receipts from sales or other forms of fund collection that enables the non‐profit organization to operate.  Administrative expenses are those for administrative support such as rent, utilities, salaries, advertising and other like items as well as fund raising expenses.  Operating expenses for carrying out the purposes of the non‐profit organization are not included in administrative expenses.  The monetary receipts and expense amounts may be verified with certified financial statements or financial documents required by public agencies. RCTC will inform you as to your eligibility for this payment option and the documentation you must submit to support your claim.  Remember, when you elect to take this payment option you are not entitled to reimbursement for any other moving expenses, i.e. Option A  described above. As the owner of an outdoor advertising display, you are eligible for a Relocation Payment for Actual Reasonable Moving and Related Expenses.  You are not eligible to receive a Payment In Lieu of a Payment for Actual Reasonable Moving and Related Expenses. If you choose not to relocate or replace the sign, the payment for "direct loss of personal property" would be the lesser of: (1) the depreciated reproduction cost of the sign, as estimated by RCTC, less the proceeds from its sale, or (2) the estimated cost of moving the sign without temporary storage.  RCTC will inform you as to the exact costs that may be reimbursed.  12. I Own an Outdoor Advertising Display.  What Relocation Payment will I Receive?  In order to qualify for this payment, RCTC must determine that: 1. The business cannot be relocated without a substantial loss of existing patronage (clientele or net earnings).   2. The business owns or rents personal property which must be moved in connection with the displacement and for which an expense would be incurred, and the business vacates or relocates from its displacement site. 3. The business is not a part of a commercial enterprise having more than three other entities which are not being acquired by RCTC, and which are engaged in the same or similar business activities. 4. The business is not operated at the displacement dwelling/site solely for the purpose of renting such dwelling/site to others. 5. The business contributed materially to the income of the displaced person during the two (2) taxable years prior to displacement. If the business or farm was not in operation for the full two years prior to displacement, the net earnings are based on the actual period of operation at the acquired site projected to an annual rate.  Average net earnings may be based on a different period of time when RCTC determines it to be more equitable.  Net earnings include any compensation paid to the owners of the business, a spouse or dependents.  Proof of net earnings must be furnished to RCTC through income tax returns, certified financial statements, or other reasonable evidence which RCTC determines is satisfactory.  Every business is eligible for a relocation payment to cover the reasonable cost of moving. Assuming you meet certain eligibility criteria, you may choose one of the following options: Option A:  A Payment for Actual Reasonable Moving       and Related Expenses;  or Option B:    A Fixed Payment In Lieu of a Payment                                for Actual Moving and Related Expenses These payment options are described below: Option A: Payment for Actual Reasonable Moving and Related Expenses If you choose a Payment for Actual Reasonable Moving and Related Expenses, you may claim the cost of: 1. Transportation of personal property.  Transportation costs for a distance beyond 50 miles are not eligible, unless RCTC determines that relocation beyond 50 miles is justified. 2. Packing, crating, unpacking, and uncrating of the personal property. 3. Disconnecting, dismantling, removing, reassembling, and reinstalling relocated machinery, equipment, and other personal property, and certain substitute personal property.  This includes connection to utilities available within the building.  It also includes modifications to the personal property, including those mandated by Federal, State or local law, code or ordinance, necessary to adapt 11. What Kinds of Payments for Moving Expenses Will I Receive?  it to the replacement structure, the replacement site, or the utilities at the replacement site, and modifications necessary to adapt the utilities at the replacement site to the personal property. 4. Storage of the personal property determined to be necessary by RCTC, not to exceed 12 months, unless RCTC determines that a longer period is warranted. 5. Insurance for the replacement value of the personal property in connection with the move and necessary storage.  6. The replacement value of property lost, stolen or damaged in the process of moving (not through fault or negligence of the displaced person, his or her agent or employee), where insurance covering such loss, theft or damage is not reasonably available.    7. Any license, permit, fees or certification required of your business at the replacement location.  However, the payment may be based on the remaining useful life of the existing license, permit, fees or certification. 8. Reasonable and preauthorized professional services that RCTC determines to be necessary for (i) planning the move of the personal property, (ii) moving the personal property, and (iii) installing the relocated personal property at the replacement location. 9. Re‐lettering signs and replacing stationary on hand at the time of displacement that is made obsolete as a result of the move. 10. Actual direct loss of tangible personal property incurred as a result of moving or discontinuing your business.  The payment will consist of the lesser of:  a.  Lease or rental charges  b.  Personal or real property taxes  c.  Insurance premiums, and  d.  Utility charges (excluding impact fees) 7. Other items that RCTC considers essential to the reestablishment of the business. The following is a non‐exclusive listing of reestablishment expenditures not considered to be reasonable, necessary or otherwise eligible: Purchase of capital assets, such as office furniture, filing cabinets, and machinery or trade fixtures. Purchase of manufacturing materials, production supplies, product inventory, or other items used in the normal course of the business operation. Interest costs associated with any relocation expense or the purchase of replacement property.  Payment to a part‐time business in the home which does not contribute materially to the household income. Option B: Fixed Payment In Lieu of a Payment for Actual Reasonable Moving and Related Expenses A displaced business, non‐profit organization or farm may be eligible to choose a fixed payment in lieu of the payments for actual moving and related expenses and actual reasonable reestablishment expenses. The payment may not be less than $1,000.00 or more than $20,000.00. For a business or farm, the payment is based on the average annual net earnings before Federal, State and local income taxes during the 2 taxable years immediately prior to the taxable year in which it was displaced.  For a non‐profit organization, the payment is based on the average of 2 years annual gross revenues less administrative expenses.  the mover directly.  In either case, let RCTC’s relocation representative know before you move.  RCTC representatives can help you select a reliable and reputable mover. When a payment for "actual direct loss of personal property" or "substitute personal property" is made for an item, the estimated cost of moving the item may be based on the lowest acceptable bid or estimate obtained by RCTC.  If not sold or traded‐in, the item must remain at the old location and ownership of the item must be transferred to RCTC before you may receive the payment. In addition to the reimbursable expenses described above, a small business, farm or non‐profit organization may be eligible to receive a payment of up to $50,000 for expenses actually incurred in relocating and reestablishing its operation at a replacement site. Eligible expenses must be reasonable and necessary, as determined by RCTC. They may include but are not limited to the following: 1. Repairs or improvements to the replacement real property as required by federal, state or local law, code or ordinance. 2. Modifications to the replacement property to accommodate the business operation or make replacement structures suitable for conducting the business. 3. Construction and Installation costs for exterior signage to advertise the business. 4. Redecoration or replacement of soiled or worn surfaces at the replacement site, such as paint, paneling or carpeting. 5. Advertising of replacement location. 6. Estimated increased costs of operation during the first 2 years at the replacement site, for such items as:  (i) The fair market value in place of the item, as is, for continued use at the displacement site, less the proceeds from its sale.  (To be eligible for payment, you must make a good faith effort to sell the personal property, unless RCTC determines that such effort is not necessary.  When payment for property loss is claimed for goods held for sale, the fair market value will be based on the cost of the goods to the business, not the potential selling price.); or (ii) The estimated cost of moving the item as is, but with no allowance for storage; or for reconnecting a piece of equipment if the equipment is in storage or not being used at the acquired site. (If you elect to discontinue your business, the estimated cost will be based on a moving distance of 50 miles.) 11. Purchase of substitute personal property.  If an item of personal property which is used as part of your business is not moved but is promptly replaced with a substitute item that performs a comparable function at the replacement site, you will be entitled to payment for the lesser of: (i) The cost of the substitute item, including installation costs at the replacement site, minus any proceeds from the sale or tradein of the replaced item; or (ii) The estimated cost of moving and reinstalling the replaced item but with no allowance for storage.  At RCTC’s discretion, the estimated cost for a low cost or uncomplicated move may be based on a single bid or estimate.   12. The reasonable cost incurred in attempting to sell an item that is not to be relocated. 13. Searching for a replacement location. Your business is entitled to reimbursement for actual expenses, not to exceed $2,500 as RCTC determines to be reasonable, which are incurred  in searching for a replacement location, including: i) Transportation ii) Meals and lodging away from home. iii) Time spent searching, based on reasonable salary or earnings. iv) Fees paid to a real estate agent or broker to locate a replacement site, exclusive of any fees or commissions related to the purchase of such site. v) Time spent in obtaining permits and attending zoning hearings; and vi) Time spent negotiating the purchase of a replacement site based on a reasonable salary or earnings.   14. When the personal property to be moved is of low value and high bulk, and the cost of moving the property would be disproportionate to its value in the judgment of RCTC, the allowable moving cost payment shall not exceed the lesser of: the amount which would be received if the property were sold at the site or the replacement cost of a comparable quantity delivered to the new business location. 15. Other related moving expenses as RCTC determines to be reasonable and necessary, including: i) Connection to available nearby utilities from the right‐of‐way to improvements at the replacement site; ii) Professional services performed prior to the purchase or lease of a replacement site to determine its suitability for your business operation, including but not limited to soil testing, feasibility and marketing studies (excluding any fees or commissions directly related to the purchase or lease of such site).  At  RCTC’s discretion, a reasonable pre‐approved hourly rate may be established. iii) Impact fees or one‐time assessments for anticipated heavy utility usage, as determined by RCTC. RCTC’s relocation representative will explain all eligible moving costs, as well as those which are not eligible.  You must be able to account for all costs that you incur, so keep all your receipts.  RCTC will inform you of the documentation needed to support your claim. You may minimize the amount of documentation needed to support your claim if you elect to "self‐move" your property.  Payment for a self‐move is based on the amount of an acceptable low bid or estimate obtained by RCTC.  If you self‐move, you may move your personal property using your own employees and equipment or a commercial mover.  If you and RCTC cannot agree on an acceptable amount to cover the cost of the self‐move, you will have to submit full documentation in support of your claim.  You may elect to pay your moving costs yourself and be reimbursed by RCTC or, if you prefer, you may have RCTC pay   Representante de RCTC:    Overland, Pacific & Cutler, Inc. 2280 Market Street, Suite #200 Riverside, CA  92501 (951) 683‐2353  Información de Asistencia en Reubicación  para Empresas y Organizaciones no Lucrativas  Comisión de Transporte  del Condado de Riverside (RCTC)  Proyecto para Mejorar  el Corredor SR‐91  La propiedad en el cual usted tiene su empresa está en una área que RCTC propone para ampliación de la Ruta Estatal 91 (SR‐91). Sí y cuando el proyecto proceda, y sea necesario que usted se mude de local, usted puede ser elegible para recibir ciertos beneficios de reubicación. Usted será notificado oportunamente acerca de la fecha límite para mudarse. Por favor lea esta folleto, porque le ayudará a saber si es elegible para recibir los beneficios y la cantidad que beneficios de reubicación que podría recibir bajo la ley. Usted necesitará presentar información correcta y a tiempo para determinar sus beneficios de reubicación. La información es voluntaria, pero si no la proporciona usted podría no recibir los beneficios o podría tardarse más para que se le pague. Le sugerimos que guarde esta folleto informativa que le servirá como referencia.  RCTC ha contratado a la firma profesional Overland, Pacific & Cutler, Inc. (OPC) para que le brinde a usted asistencia con la reubicación. La empresa está disponible para explicarle el programa y los beneficios. En la carátula encontrará su dirección y teléfono.  POR FAVOR NO SE MUDE PREMATURAMENTE. ESTA NO ES UNA NOTIFICACIÓN PARA QUE DESALOJE SU LOCAL. Sin embargo, si usted decide mudarse antes de lo requerido, tiene que contactar a su representante en Overland, Pacific & Cutler, Inc., para que no se arriesgue a perder algún beneficio. Este es sólo un folleto de información general y su intención no es dar una descripción detallada ya sea de la ley o de las regulaciones contenidas en el programa de asistencia en la  reubicación de RCTC.  Por favor siga pagando su renta a su arrendatario actual, o usted podría ser desalojado y pondría en riesgo los beneficios de reubicación a los que usted podría tener derecho. Una vez que RCTC adquiera la propiedad, podría exigírsele que pague la renta a RCTC en lugar de hacerlo a su arrendador actual.  Introducción  Información Adicional  Si tiene preguntas después de leer este folleto, por favor contacte a un representante de reubicación de RCTC en Overland, Pacific & Cutler. Notas  (Revelación de la Circular 230 del IRS: Para asegurar la conformidad con los requerimientos impuestos por el IRS, le informamos que cualquier asesoría de impuestos contenida en esta comunicación (incluyendo cualquier documento adjunto) no tuvo la intención o fue escrito para ser usado, y no puede ser usado, con el propósito de (i) evitar penalidades relacionadas con impuestos bajo el Código Interno de Ingresos o (ii) promocionar mercadeo o recomendar a otra entidad cualquier asunto discutido aquí). De acuerdo con la Ley Pública 105‐117, para ser elegible para recibir asistencia y beneficios de reubicación no residencial en proyectos de reubicación financiados federalmente, en el caso de una empresa no incorporada, cada propietario tiene que ser, ya sea ciudadano o ciudadano naturalizado de los Estados Unidos, o un extranjero con presencia legal en los Estados Unidos. El dueño de su propia empresa y todos los propietarios de una sociedad tienen que proveer información concerniente a su presencia legal en los Estados Unidos, y una corporación con fines lucrativos o sin fines lucrativos tiene que certificar que está autorizada para realizar negocios en los Estados Unidos. Los dueños de su propia empresa o las sociedades que no estén presentes legalmente en los Estados Unidos, o quienes decidan no proveer esta información, no son elegibles para recibir asistencia por reubicación, a menos que dicha inhabilidad, resultase en un excepcional y extremadamente inusual apuro para el cónyuge, pariente o hijo del extranjero, siendo cualquiera de éstos un ciudadano o un extranjero admitido para recibir residencia permanente. Un excepcional y extremadamente inusual apuro es definido como un impacto adverso  significante y demostrable en la salud o seguridad, existencia continuada en la unidad familiar y cualquier otro impacto determinado por RCTC que afecte negativamente al cónyuge, pariente o hijo del extranjero. Los beneficios de reubicación serán prorrateados para reflejar el número de miembros con presencia legal certificada en los EE. UU. 16. Solicitud de Presencia Legal A. Asistencia en consejería para explicarle el proceso de reubicación, los requerimientos relacionados con la elegibilidad, los procedimientos para obtener reembolso por los gastos de mudanza y referencias de locales adecuados para su reubicación. B. Pago por sus gastos de mudanza. Usted puede recibir una de las siguientes opciones: Opción A: Un pago por Gastos Reales Razonables de Mudanza y Otros Gastos Relacionados; o Opción B: Un pago fijo en Lugar de un Pago por el Costo Real de la Mudanza y Gastos Relacionados C. Otra ayuda para reestablecer su negocio y minimizar el impacto de la mudanza incluyendo ayuda con la preparación de formularios de reclamaciones para solicitar pagos por reubicación. Si usted no está de acuerdo con la decisión de RCTC con respecto a su derecho para recibir pago por reubicación o la cantidad de pago, usted puede apelar eso decisión.  ALGUNAS PREGUNTAS GENERALES Normalmente, la elegibilidad comienza con la fecha que el dueño de la propiedad recibe por escrito de RCTC la oferta de compra inicial. Por tanto, usted no debe mudarse antes de esa fecha o antes de recibir una notificación de elegibilidad. Si lo hace, usted podría no ser elegible para recibir asistencia en reubicación.  1.   Resumen de la Asistencia en Reubicación Disponible:  2. ¿Cómo sabré si soy elegible para recibir asistencia en reubicación?  Usted será contactado oportunamente y entrevistado personalmente por un representante de RCTC. El entrevistador querrá obtener información acerca de sus operaciones actuales, así como identificar la propiedad personal que puede ser mudada y las mejoras que no pueden mudarse, determinar sus necesidades y preferencias para elegir un lugar de reubicación, estimar el tiempo requerido para desocupar las instalaciones y su necesidad de pagos por adelantado. Durante la entrevista, usted podría querer discutir otros asuntos relacionados con la mudanza. Por su propio bien, le conviene brindar la mayor cantidad posible de información para que RCTC, a través de sus representantes de reubicación, puedan asistirle con su mudanza.    Se hará todo esfuerzo razonable para darle el tiempo suficiente para encontrar un local adecuado para reubicarse y reestablecer su empresa. De ser posible, se acordará mutuamente una fecha para la mudanza. A menos que haya una necesidad urgente por la propiedad (por ejemplo, si su presencia representara una emergencia de salud o seguridad), a usted no se le pedirá que se mude sin darle una notificación por escrito de por lo menos 90 días. Sin embargo, es importante que usted se mantenga en contacto con su representante de reubicación para que esté al tanto de los cronogramas para realizar el proyecto y la fecha aproximada en la que tendrá que mudarse. Si usted llega a un acuerdo voluntario para vender su propiedad a RCTC, probablemente a usted no se le exigirá que se mude antes de recibir el precio de compra acordado. 3. ¿Cómo sabrá RCTC cuánta ayuda necesito?  4. ¿Qué tan pronto tendré que mudarme? 5. Mi propia propiedad. ¿Me pagarán por ella antes de que tenga que mudarme? la discriminación. Usted puede archivar una reclamación si cree que ha sido víctima de discriminación. Para detalles contacte a RCTC.  Cualquier persona agraviada por una determinación con respecto a la elegibilidad para, o la cantidad de, un pago autorizado por el Programa de Asistencia en Reubicación de RCTC puede hacer que se revise la solicitud de apelación por parte de RCTC de acuerdo con el proceso de apelaciones. Los detalles completos sobre los procedimientos de apelaciones están disponibles si se los solicita a RCTC.  El Código de Sección 7269 del Gobierno de California indica que ningún pago de reubicación debe ser considerado como ingreso para los propósitos de la Ley de Impuestos Personales por Ingresos (Personal Income Tax Law), Parte 10 (comenzando con la Sección 17001) de la División 2 del Código de Ingresos y Sistema Fiscal, o la Ley de Impuestos a Bancos y Corporaciones, Parte 11 (comenzando con la Sección 23001) de la División 2 del Código de Ingresos y Sistema Fiscal. Además, las regulaciones federales (49 CFR Parte 24, Sección 24.209) también indica que ningún pago recibido bajo esta parte (Parte 24) debe ser considerado como ingreso para propósitos del Código Interno de Ingresos de 1954, el cual ha sido reasignado como el Código Interno de Ingresos de 1986.  La declaración precedente no tiene la intención de ser un consejo legal con respecto a las consecuencias en cuestión de impuestos, y los desplazados deben consultar con su propio asesor de impuestos o consejero legal para determinar el estado actual de dichos pagos.    14. Apelaciones 15. Implicaciones en impuestos de los beneficios de reubicación  Usted tiene que registrar una reclamación para un pago por reubicación. Un representante de reubicación de RCTC le proporcionará los formularios de reclamación requeridos, le asistirá para diligenciarlos y le explicará el tipo de documentación que usted tiene que presentar para recibir sus pagos por reubicación. Si tiene que hacer algún gasto por reubicación antes de mudarse (por ejemplo, tiene que dar un depósito de seguridad para arrendar su nuevo local), discuta con RCTC sus necesidades financieras. Usted podría recibir un pago por adelantado. Un pago por adelantado puede ser puesto en “plica” (“escrow”) para asegurarse de que la mudanza se realice puntualmente. Si usted es un inquilino, usted tiene que registrar una reclamación dentro de los 18 meses posteriores a la fecha de su mudanza. Si es dueño de la propiedad, usted tiene que registrarla dentro de los 18 meses posteriores a la fecha de su mudanza, o de la fecha en que recibió su último pago por la adquisición, lo que suceda más tarde. Sin embargo, a usted le conviene registrarla lo antes posible después de mudarse. Entre más rápido registre su reclamación, más rápido puede ser procesada y pagada. Si no puede registrar su reclamación dentro de los 18 meses, RCTC puede extender este plazo. A usted se le pagará puntualmente después de que registre una reclamación aceptable. Si hay preguntas con respecto a su derecho a recibir un pago por reubicación o a la cantidad del pago, se le notificará, por escrito, acerca del problema y lo que puede hacer para resolver el asunto.  Ninguna persona, por motivos de raza, color, nacionalidad o sexo, debe ser excluida de la participación en, ser rechazada para recibir beneficios de, o estar sometida a discriminación bajo el programa de asistencia en reubicación de RCTC conforme al Título VI del Acta de Derechos Civiles de 1964, Título VIII del Acta de Derechos Civiles de 1968, y otras leyes estatales y federales aplicables para prevenir 13. No discriminación A usted se le puede exigir un pago de arrendamiento justo de mercado a RCTC por el periodo entre la adquisición de su propiedad y la fecha en que se mude. Su arrendamiento y los términos de su periodo de alquiler generalmente serán los mismos de cualquier acuerdo preexistente.  Su representante de reubicación le brindará información actualizada y continua sobre locales de reemplazo que se ajusten a sus necesidades. También se le proveerán nombres de agentes de bienes raíces locales y brokers que pueden ayudarle a buscar el tipo de local de reemplazo que requiere. Sin embargo, se le pide a usted asumir un rol activo en la identificación y reubicación en un local de su elección. Nadie conoce sus necesidades mejor que usted mismo. Usted querrá un lugar con suficiente espacio para las actividades que planea. También querrá asegurarse de que no haya reglamentos de zonificación (zoning) u otros requerimientos que restrinjan demasiado sus planes de operación. Su representante de reubicación le explicará qué clase de costos por mudanza son elegibles para recibir reembolso y cuáles no lo son. Eso le permitirá hacer la mudanza de la forma más conveniente para usted.   6. ¿Tendré que pagarle renta a RCTC antes de mudarme? 7. ¿Cómo encontraré un local de reemplazo?  Además de ayudarle a encontrar un local de reemplazo adecuado, su representante de reubicación le ayudará a asegurar los servicios de especialistas externos, a medida que sea necesario, para planear la mudanza, así como también le brindará asistencia durante la mudanza y en la reinstalación de maquinaria y/u otras propiedades personales. El rango de servicios depende de las necesidades de la empresa que se está desalojando. Usted debe pedirle al representante de reubicación de RCTC que le diga acerca de los servicios específicos que estarán disponibles para usted. Antes de hacer cualquier arreglo para mudarse, notifíquele por escrito al representante de reubicación de RCTC su intención de mudarse. Esto debe hacerse por lo menos 30 días antes de la fecha en que comience a mudarse. RCTC discutirá con usted la mudanza y le asesorará con respecto al(los) pago(s) de reubicación para los que usted puede ser elegible, los requisitos que debe cumplir y cómo obtener un pago.    Si ha decidido cerrar su empresa en lugar de reubicarla, aún asi puede ser elegible para recibir un pago. Contacte a su representante de reubicación de RCTC y converse con él su decisión de cerrar su empresa. Se le informará acerca del pago, si lo hay, para el que usted puede ser elegible, los requisitos que debe cumplir y cómo obtener su pago.  9. Yo tengo un local de reemplazo y quiero mudarme. ¿Qué debo hacer? 10. Planeo cerrar mi empresa en lugar de mudarme. ¿Qué debo hacer? 8. ¿Qué otra asistencia habrá disponible para ayudarme? donaciones en efectivo, diezmos y recibos de venta u otra forma de recolección de fondos que le permitan a la organización sin fines lucrativos conducir sus operaciones. Gastos administrativos son aquellos destinados al sustento administrativo como arrendamiento, servicios, salarios, publicidad y otros gastos similares, así como gastos por recaudaciones de fondos. Los gastos operativos por conducir los propósitos de la organización sin fines lucrativos la son incluidos en los gastos administrativos. Los recibos monetarios y la cantidad de los gastos pueden ser verificados con estados financieros certificados o documentos financieros exigidos por agencias públicas. RCTC le informará acerca de su elegibilidad para recibir esta opción de pago y la documentación que tiene que presentar para respaldar su reclamación. Recuerde, cuando usted elige recibir esta opción de pago usted no tiene derecho a ser reembolsado por ningún otro gasto de mudanza, por ejemplo la Opción A descrita arriba.  Como dueño de un aviso publicitario exterior, usted es elegible para recibir un Pago de Reubicación por Gastos Reales Razonables de Mudanza y Otros Gastos Relacionados. Usted no es elegible para recibir un Pago en Lugar de un Pago para Cubrir los Costos Reales Razonables de Mudanza y Gastos Relacionados. Si usted elige no reubicar o reemplazar el aviso, el pago por “pérdida directa de propiedad personal” será el menor de: (1) el costo de reproducción depreciado del aviso, como lo estime RCTC, menos lo recaudado por su venta, o (2) el costo estimado por mudar el aviso sin almacenaje temporal. RCTC le informará acerca de los costos exactos que pueden ser reembolsados.  12. Soy dueño de un aviso publicitario exterior. ¿Qué pago por reubicación recibiré?  Para poder acceder a este pago, RCTC tiene que determinar que: 1. La empresa no puede ser reubicada sin pérdidas significativas de su clientela habitual (clientela o ingresos netos).  2. La empresa es dueña o arrienda propiedades personales que tienen que ser mudadas en conexión con el desalojo y por las cuales se incurriría un gasto, y la empresa desaloja o se reubica de su sitio de reemplazo.   3. La empresa no es parte de un grupo comercial con fines de lucro que tenga más de otras tres entidades que no están siendo adquiridas por RCTC, y las cuales están comprometidas en actividades de negocio iguales o similares. 4. La empresa no es operada exclusivamente en la vivienda/sitio del desalojo con el propósito de arrendar esa vivienda/sitio a otros. 5. La empresa contribuyó materialmente con los ingresos de la persona durante los dos (2) años sujetos a impuestos antes del desalojo. Si la empresa o granja no estaba en operación durante los dos años completos anteriores al desalojo, los ingresos netos están basados en el periodo real de operación en el sitio adquirido proyectado a una tarifa anual. Los ingresos netos promedio pueden ser basados en un periodo de tiempo diferente cuando RCTC determine que es más equitativo. Los ingresos netos incluyen cualquier compensación pagada a los dueños de la empresa, esposo o dependientes. Se tiene que presentar prueba de ingresos netos a RCTC mediante declaraciones de renta, estados de cuenta financieros certificados u otra evidencia razonable, la cual RCTC determine que es satisfactoria.  Para una organización sin fines lucrativos que califique, los ingresos brutos pueden incluir cargos de membresía, cargos por clases, Toda empresa es elegible para recibir un pago por reubicación para cubrir el costo razonable de la mudanza. Asumiendo que usted cumpla con ciertos criterios, usted puede elegir una de las siguientes opciones: Opción A: Un Pago por Gastos Reales Razonables de Mudanza y Gastos Relacionados;  o Opción B: Un Pago Fijo de Mudanza en Lugar de un Pago para Cubrir los Costos Reales de Mudanza y Gastos Relacionados Abajo se describen estas opciones de pago: Opción A:  Pago por Gastos Reales Razonables de Mudanza y    Gastos Relacionados Si usted elige un Pago por Gastos Reales Razonables de Mudanza y Gastos Relacionados, usted puede reclamar los costos de: 1.  Transporte de propiedades personales. Los costos de transporte a una distancia mayor a 50 millas no son elegibles, a menos que RCTC determine que la reubicación a más de 50 millas es justificada.  2.    Empaque, montaje, desempaque y desmonte de propiedades personales. 3.     Desconexión, desensamble, quitar, reensamblaje y reinstalación de la maquinaria reubicada, equipos y otras propiedades personales, y ciertas propiedades personales sustitutas. Esto incluye conexión a servicios públicos dentro de la edificación. También incluye modificaciones a las propiedades personales, incluyendo las exigidas por las leyes federales, estatales y locales, código de ordenanza, necesarios para adaptarlas a la estructura de reemplazo, el lugar de reemplazo o 11. ¿Qué tipos de pagos por gastos mudanza recibiré?   los servicios públicos en el lugar de reubicación, y las modificaciones necesarias para adaptar los servicios públicos en el lugar de reubicación a las propiedades personales. 4. Bodegaje de las propiedades personales que se determine por parte de RCTC que son necesarias, por un plazo no mayor a 12 meses, a menos que RCTC determine que se necesita un periodo más largo. 5. Seguro por el valor del reemplazo de propiedades personales en conexión con la mudanza y el bodegaje necesario. 6. El valor de reemplazo de propiedades perdidas, robadas o dañadas en el proceso de la mudanza (no por culpa o negligencia de la persona que se muda, su agente o empleados), donde la cobertura del seguro contra pérdida, robo y daños no esté disponible razonablemente. 7. Cualquier licencia, permiso, cargo o certificación requerida de su empresa en el lugar de reubicación. Sin embargo, el pago tiene que estar basado en el tiempo de vida útil restante de la licencia, permiso, cargos o certificación existentes. 8. Servicios profesionales razonables y previamente autorizados que RCTC determina que son necesarios para (i) planear la mudanza de propiedades personales, (ii) mudar las propiedades personales, e (iii) instalar las propiedades personales mudadas al local de reubicación. 9. Reescribir avisos y señalización y reemplazar oportunamente papelería al momento del desplazamiento, los cuales se vuelven obsoletos tras la mudanza. 10. Pérdida directa real de propiedades personales tangibles en la que se incurrió como resultado de mudar o cerrar su empresa. c. Primas de seguro, y d. Cargos de servicios públicos (excluyendo cargos por impacto) 7. Otros artículos que RCTC considere que son esenciales para el reestablecimiento de la empresa. El siguiente es una lista no excluyente de gastos de reestablecimiento que no son considerados como razonables, necesarios o, en cualquier caso, elegibles:  Compra de bienes capitales, como muebles de oficina, archivadores y maquinaria o enseres fijos del negocio. Compra de materiales industriales, suministros de producción, inventario de productos u otros artículos usados en las operaciones normales de la empresa.  Costos de intereses asociados con cualquier gasto de reubicación o la compra de propiedad de reemplazo. Pago a una empresa de tiempo parcial en el hogar, la cual no contribuye materialmente con el ingreso familiar.   Opción B:  Un Pago Fijo de Mudanza en Lugar de un Pago para Cubrir los Costos Reales de Mudanza y Gastos Relacionados Una empresa, organización sin fines lucrativos granja desplazada puede ser elegible para elegir un pago fijo en lugar de los pagos para cubrir los costos reales y gastos relacionados y gastos razonables de reestablecimiento. El pago no puede ser menor de $1,000 o mayor de $20,000. Para una empresa o granja, el pago está basado en el promedio de los ingresos netos anuales antes del impuesto federal, estatal y local sobre la renta durante los 2 años sujetos a impuestos inmediatamente anteriores al año sujeto a impuestos en que fue desplazado. Para una organización sin fines lucrativos, el pago es basado en el promedio de los ingresos brutos anuales de 2 años menos los gastos administrativos.   mudarse. Los representantes de RCTC le pueden ayudar a seleccionar una compañía de mudanzas confiable y de buena reputación. Cuando se hace un pago por un artículo por “pérdida real directa de propiedades personales” o “propiedades personales sustitutas”, el costo estimado de mudar el artículo puede ser basado en la cotización o estimado más baja aceptable obtenida por RCTC. Si no es vendido o cambiado, el artículo tiene que permanecer en el viejo local y la propiedad del artículo tiene que ser transferida a RCTC antes de que usted pueda recibir el pago. Ademas, de los gastos reembolsables descritos aqui, una empresa pequeña, granja organización no lucrativa puede ser elegible para recibir un pago de hasta $50,000 para gastos en los que incurra en la reubicación y reestablecimiento de operaciones en un lugar de reemplazo. Los gastos elegibles tienen que ser razonables y necesarios, según lo determine RCTC. Éstos pueden incluir, pero no se limitan a lo siguiente: 1. Reparaciones o mejoras al inmueble de reemplazo como lo exige la ley federal, estatal o local, el código o la ordenanza.  2. Modificaciones a la propiedad de reemplazo para poder realizar las operaciones de la empresa o reemplazar estructuras que deban cambiarse para que funcione la empresa. 3. Costos de construcción e instalación de letreros exteriores para anunciar la empresa. 4. Redecoración o reemplazo de superficies en mal estado o desgastadas en el lugar de reubicación, como pintura, paneles o alfombras. 5. Publicidad del lugar de la nueva ubicación. 6. Estimado del incremento del costo de operaciones durante los primeros 2 años en el lugar de reemplazo, por asuntos como: a. Cargos de arrendamiento b. Impuestos personales o inmobiliarios El pago consistirá en el menor de: i) El valor justo de mercado del artículo, como está, para continuar su uso en el lugar de desplazamiento, menos lo recaudado por su venta. (Para ser elegible para recibir pago, tiene que hacer un esfuerzo de buena fe para vender la propiedad personal, a menos que RCTC determine que ese esfuerzo no es necesario. Cuando el pago de la propiedad perdida es reclamado como mercancía para poner a la venta, el valor justo de mercado será basado en el costo de la mercancía para la empresa, no el precio potencial de venta).; o  ii) El costo estimado de mudar el artículo como está, pero sin pago por almacenaje; o por reconectar equipo si éste está almacenado o no está siendo usado en la propiedad adquirida. (Si usted decide cerrar su empresa, el estimado del costo se hará con base en una distancia de mudanza de 50 millas).  11. La compra de propiedades personales substitutas. Si un artículo de propiedad personal que es usado como parte de su empresa no es mudado pero es reemplazado oportunamente con un artículo substituto que desempeña un función comparable en el lugar de reemplazo, usted tendrá derecho a recibir un pago por el menor de: i) El costo del artículo substituto, incluyendo el costo de instalación en el lugar de reubicación, menos cualquier ingreso proveniente de la venta o cambio del artículo reemplazado; o ii) El costo estimado de mudar y reinstalar un artículo reemplazado pero sin pago por almacenaje. A discreción de RCTC, el costo estimado por una mudanza de bajo costo o poco complicada, puede basarse en una única cotización o estimado.   12. El costo razonable en el que se incurra al intentar vender un artículo que no está siendo reubicado. 13. La búsqueda de un local de reubicación. Su empresa tiene derecho para recibir reembolso por gastos reales, que no excedan los $2,500, como determina RCTC que es razonable, en la búsqueda de un local de reubicación, incluyendo:  i) Transporte  ii) Comidas y hospedaje fuera de casa. iii) Tiempo dedicado a la búsqueda, basado en un salario de ingresos razonable. iv) Honorarios pagados a un agente de bienes raíces para encontrar un lugar de reubicación, excluye cualquier honorario o comisiones relacionados con la compra de dicho inmueble.  v) El tiempo invertido en obtener permisos y atender  audiencias de leyes de urbanismo; y  vi) El tiempo invertido negociando la compra de un  local  de reemplazo, basado en un salario de ingresos  razonable.  14. Cuando las propiedades personales a ser mudadas son de poco valor y gran tamaño, y el costo de mudarlas sea desproporcionado a su valor a juicio de RCTC, el costo a destinarse a la mudanza no debe exceder el menor de: la cantidad que sería recibida si la propiedad fuera vendida en el lugar o el costo de reemplazo de una cantidad comparable entregada en el nuevo domicilio de la empresa. 15. Otros gastos relacionados con la mudanza de la manera en que RCTC determina que sea razonable y necesario, incluyendo: i) Conexión a los servicios públicos disponibles en el en el lugar de reubicación, si la conexión a los servicios públicos no existe;  ii) Servicios profesionales realizados antes de la compra  o arrendamiento del sitio de reemplazo para   determinar si es adecuado para la operación de su  empresa, incluyendo pero sin limitarse a prueba de  tierra, viabilidad y estudios de mercadeo (excluyendo  cualquier cargo o comisiones relacionadas  directamente con la compra o arrendamiento de  dicho local). A discreción de RCTC, puede  establecerse un sueldo razonable por hora  aprobado previamente. iii) Pago al municipio o localidad por el impacto del uso en la nueva ubicación, según lo determine RCTC. Un representante de reubicación le explicará todos los costos de mudanza elegibles, así como los que no son elegibles. Usted tiene que llevar registro de todos los costos incurridos, así que guarde todos los recibos. RCTC le informará de la documentación que se necesita para respaldar su reclamo. Usted puede minimizar la cantidad de documentación que se necesita para respaldar su reclamación si usted elige “mudarse por su cuenta” de su propiedad. El pago por mudanza por su cuenta está basado en la cantidad de una cotización baja aceptable o una obtenida por RCTC. Si se muda por su cuenta, usted puede mudar sus propiedades personales usando a sus propios empleados y equipo o a través de una compañía de mudanzas comerciales. Si usted y RCTC no pueden llegar a un acuerdo sobre una cantidad aceptable para cubrir el costo de la mudanza por su cuenta, usted tendrá que someter toda la documentación para respaldar su reclamación. Usted puede elegir pagar por su cuenta sus costos de mudanza y ser reembolsado por RCTC o, si prefiere, puede hacer que RCTC le pague a la empresa de mudanzas directamente. En cualquier caso, infórmele al representante de reubicación de RCTC antes de  Updated Relocation Plan for the SR-91 Corridor Improvement Project 46 Exhibit I: Residential Informational Brochure  RCTC Representative:    Overland, Pacific & Cutler, Inc. 2280 Market Street, Suite #200 Riverside, CA  92501 (951) 683‐2353 Spanish speaking representatives are available.  Si necesita esta información en español, por favor llame a su representante. Riverside County  Transportation Commission State Route 91  Corridor Improvement Project  Relocation Assistance Information Brochure for Residential Occupants  Informational Brochure Contents:  1. General Information 2. Assistance in Locating a Replacement Dwelling 3. Moving Benefits 4. Replacement Housing Payment ‐ Tenants and Certain Others 5. Section 8 Tenants 6. Replacement Housing Payment – Homeowners 7. Qualification for, and Filing of, Relocation Claims 8. Last Resort Housing Assistance 9. Rental Agreement 10. Appeal Procedures – Grievance 11. Tax Status of Relocation Benefits 12. Lawful Presence Requirement 13. Non‐Discrimination and Fair Housing 14. Additional Information and Assistance Available and extremely unusual hardship is defined as significant and demonstrable adverse impact on the health or safety, continued existence of the family unit, and any other impact determined by RCTC to negatively affect the alien’s spouse, parent or child. Relocation benefits will be prorated to reflect the number of household members with certified lawful presence in the US. No person shall on the grounds of race, color, national origin or sex, be excluded from participation in, be denied the benefits of, or be subjected to discrimination under RCTC’s relocation assistance program pursuant to Title VI of the Civil Rights Act of 1964, Title VIII of the Civil Rights Act of 1968, and other applicable state and federal anti‐discrimination and fair housing laws. You may file a complaint if you believe you have been subjected to discrimination. For details contact RCTC. Those responsible for providing you with relocation assistance hope to assist you in every way possible to minimize the hardships involved in relocating to a new home.  Your cooperation will be helpful and greatly appreciated.  If you have any questions at any time during the process, please do not hesitate to contact your relocation representative at Overland, Pacific & Cutler.        14. Additional Information and Assistance Available 13. Non‐Discrimination and Fair Housing  California Government Code Section 7269 indicates no relocation payment received shall be considered as income for the purposes of the Personal Income Tax Law, Part 10 (commencing with Section 170 01) of Division 2 of the Revenue and Taxation Code, or the Bank and Corporation Tax law, Part 11 (commencing with Section 23001) of Division 2 of the Revenue and Taxation Code. Furthermore, federal regulations (49 CFR Part 24, Section 24.209) also indicate that no payment received under this part (Part 24) shall be considered as income for the purpose of the Internal Revenue Code of 1954, which has been redesignated as the Internal Revenue Code of 1986. The preceding statement is not tendered as legal advice in regard to tax consequences, and displacees should consult with their own tax advisor or legal counsel to determine the current status of such payments. (IRS Circular 230 disclosure: To ensure compliance with requirements imposed by the IRS, we inform you that any tax advice contained in this communication (including any attachments) was not intended or written to be used, and cannot be used, for the purpose of (i) avoiding tax‐related penalties under the Internal Revenue Code or (ii) promoting marketing or recommending to another party any matters addressed herein) In order to be eligible to receive relocation benefits in federally‐funded relocation projects, all members of the household to be displaced must provide information regarding their lawful presence in the United States. Any member of the household who is not lawfully present in the United States or declines to provide this information may be denied relocation benefits, unless such ineligibility would result in an exceptional and extremely unusual hardship to the alien’s spouse, parent, or child, any of whom is a citizen or an alien admitted for permanent residence. Exceptional 12. Lawful Presence Requirement 11. Tax Status of Relocation Benefits The dwelling in which you live is in a project area that is being proposed for the widening of SR‐91. If and when the project proceeds, and it is necessary for you to move from your dwelling, you may be eligible for certain benefits. You will be notified in a timely manner as to the date by which you must move. Please read this information, as it will be helpful to you in determining your eligibility and the amount of the relocation benefits you may receive under the federal law. You will need to provide adequate and timely information to determine your relocation benefits. The information is voluntary, but if you choose not to provide it, you may risk not receiving the benefits or it may delay your payment. We suggest you save this informational brochure for reference.  Riverside County Transportation Commission (RCTC) has retained the professional firm of Overland, Pacific & Cutler, Inc. (OPC) to provide relocation assistance to you.  The firm is available to explain the program and benefits. Their address and telephone number is listed on the back cover. As part of this relocation process, we strongly suggest that you do not move prematurely. Please note that this is not a notice to vacate your dwelling. However, if you desire to move sooner than required, you must contact your representative with Overland, Pacific & Cutler, Inc., so you will not jeopardize any benefits.  This is a general informational brochure only, and is not intended to give a detailed description of either the law or regulations pertaining to RCTC’s relocation assistance program. Please continue to pay your rent to your current landlord, otherwise you may be evicted and jeopardize the relocation benefits to which you may be entitled to receive.  Once RCTC acquires the property, you may also be required to pay rent to RCTC.  1. General Information  RCTC, through its representatives, will assist you in locating a comparable replacement dwelling by providing referrals to appropriate and available housing units.  You are encouraged to actively seek such housing yourself. When a suitable replacement dwelling unit has been found, your relocation consultant will carry out an inspection and advise you as to whether the dwelling unit meets decent, safe and sanitary housing requirements.  A decent, safe and sanitary housing unit provides adequate space for its occupants, proper weatherproofing, heating, and electrical and plumbing systems.  Your new dwelling must pass inspection before relocation assistance payments can be authorized.   If you are required to move as a result of the project, you will receive a payment to assist in moving your personal property. The actual, reasonable and necessary expenses for moving your household belongings may be determined based on the following methods: A Fixed Moving Payment based on the number of rooms you occupy (see below); or A payment for your Actual Reasonable Moving and Related Expenses based on at least two written estimates and receipted bills; or In some cases, a combination of both. For example, you may choose a Self Move, receiving a payment based on the Fixed Residential Moving Cost Schedule shown below, plus contract with a professional mover to transport your grand piano and /or other items that require special handling.   In this case, there may be an adjustment in the number of rooms which qualify under the Fixed Residential Moving Cost Schedule.   2. Assistance in Locating a Replacement Dwelling 3. Moving Benefits If comparable replacement dwellings are not available when you are required to move, or if replacement housing is not available within the monetary limits described above, RCTC will provide Last Resort Housing assistance to enable you to rent or purchase a replacement dwelling on a timely basis.  Last Resort Housing assistance is based on the individual circumstances of the displaced person. Your relocation representative will explain the process for determining whether or not you qualify for Last Resort assistance. If you are a tenant, and you choose to purchase rather than rent a comparable replacement dwelling, the entire amount of your rental assistance and Last Resort eligibility must be applied toward the down‐payment and eligible incidental expenses of the home you intend to purchase. As a result of RCTC's action to potentially purchase the property where you live, you may become a tenant of RCTC.   If this occurs, you will be asked to sign a rental agreement which will specify the monthly rent to be paid, when rent payments are due, where they are to be paid and other pertinent information. Any person aggrieved by a determination as to eligibility for, or the amount of, a payment authorized by RCTC’s Relocation Assistance Program may have the appeal application reviewed by RCTC in accordance with its appeals procedure. Complete details on appeal procedures are available upon request from RCTC. 8. Last Resort Housing Assistance  9. Rental Agreement 10. Appeal Procedures ‐ Grievance  B. Rental Assistance Option ‐ If you are an owner‐occupant and choose to rent rather than purchase a replacement dwelling, you may be eligible for a rental assistance payment of up to the amount that you could have received under the Purchase Price Differential, explained above. The payment will be based on the difference between the fair market rent of the dwelling you occupy and the rent you must pay for a comparable replacement dwelling.  If you receive a rental assistance payment, as described above, and later decide to purchase a replacement dwelling, you may apply for a payment equal to the amount you would have received if you had initially purchased a comparable replacement dwelling, less the amount you have already received as a rental assistance payment.  To qualify for a Replacement Housing Payment, you must rent or purchase and occupy a comparable replacement unit within one year from the following: For a tenant, the date you move from the displacement dwelling. For an owner‐occupant, the latter of: a. The date you receive final payment for the displacement dwelling, or b. The date RCTC fulfills its obligation to make available comparable replacement dwellings. All claims for relocation benefits must be filed with RCTC within eighteen (18) months from the date on which you receive final payment for your property, or the date, on which you move, whichever is later. 7. Qualification for, and Filing of, Relocation Claims A. Fixed Moving Payment (Self Move) Fixed Moving Payment is based upon the number of rooms you occupy and whether or not you own your own furniture.  The payment is based upon a schedule approved by RCTC, and ranges, for example, from $450 for one room if you do not own the furniture to $2,365 for eight rooms if you do own the furniture. (For details see the table).  Your relocation representative will inform you of the amount you are eligible to receive, if you choose this type of payment. If you select a fixed payment, you will be responsible for arrang‐ing for your own move, and RCTC will assume no liability for any loss or damage of your personal property. A fixed pay‐ment also includes utility hook‐up and other related moving fees. B. Actual Moving Expense (Professional Move) If you wish to engage the services of a licensed  professional mover and have RCTC pay the bill, you may claim the ACTUAL cost of moving your personal property up to 50 miles.  Your relocation representative will inform you of the number of competitive moving bids (if any) which may be required, and assist you in developing a “mover” scope of services for RCTC’s approval. Fixed Moving Schedule CALIFORNIA (Effective 2012) Occupant owns furniture:  1 room $685  2 rooms $880  3 rooms $1,100  4 rooms $1,295  5 rooms $1,570  6 rooms $1,815  7 rooms $2,090  8 rooms $2,365  Each additional room $250 Occupant does NOT  own furniture:  1 room $450  Each additional room $85  You may be eligible for a payment up to $5,250.00 to assist in renting or purchasing a comparable replacement dwelling.  In order to qualify, you must either be a tenant who has occupied the present dwelling for at least 90 days immediately prior to the initiation of negotiations with the property owner or an owner who has occupied the present dwelling between 90 and 180 days immediately prior to the initiation of negotiations. A. Rental Assistance. If you wish to rent your replacement dwelling, your maximum rental assistance benefits will be based upon the difference over a forty‐two (42) month period between the rent you must pay for a comparable replacement dwelling and the lesser of your current rent or thirty percent (30%) of your monthly household income if your total gross income is classified as “low income” by the U. S. Department of Housing and Urban Development’s (HUD) Annual Survey of Income Limits for Public Housing and Section 8 Programs. You will be required to provide your relocation representative with monthly rent and household income verification prior to the determination of your eligibility for this payment.  ‐ OR ‐ B. Down‐payment Assistance. If you qualify, and wish to purchase a home as a replacement dwelling, you can apply up to the total amount of your rental assistance payment towards the down‐payment and non‐recurring incidental expenses. Your relocation representative will clarify procedures necessary to apply for this payment.    4. Replacement Housing Payment ‐Tenants and Certain      Others If you are required to move, you may be eligible to transfer your Section 8 eligibility to a replacement site.  In such cases, a comparable replacement dwelling will be determined based on your family composition at the time of displacement and the current housing program criteria.  This may not be the size of the unit you currently occupy.  Your relocation representative will provide counseling and other advisory services along with moving benefits. A. If you own and occupy a dwelling to be purchased by RCTC for at least 180 days prior to the initiation of negotiation, you may be eligible to receive a payment of up to $22,500.00 to assist you in purchasing a comparable replacement unit.  This payment is intended to cover the following items:  1.  Purchase Price Differential ‐ An amount which, when added to the amount for which RCTC purchased your property, equals the lesser of the actual cost of your replacement dwelling; or the amount determined by RCTC as necessary to purchase a comparable replacement dwelling. Your relocation representative will explain both methods to you.   2. Mortgage Interest Differential ‐ The amount which covers the increased interest costs, if any, required to finance a replacement dwelling. Your relocation representative will explain limiting conditions. 3. Incidental Expenses ‐ Those one time incidental costs related to purchasing a replacement unit, such as escrow fees, recording fees, and credit report fees.  Recurring expenses such as prepaid taxes and insurance premiums are not compensable. 5. Section 8 Tenants 6. Replacement Housing Payment ‐ Homeowners   Representante de RCTC:    Overland, Pacific & Cutler, Inc. 2280 Market Street, Suite #200 Riverside, CA  92501 (951) 683‐2353 Declaración Informativa de Asistencia en Reubicación para Ocupantes de Residencias  Comisión de Transporte  del Condado de Riverside (RCTC)  Proyecto de Mejoramiento del Corredor de la Ruta Estatal 91  Contenido Informativo de la Declaración  1. Información General  2. Asistencia Para Encontrar La Reubicación de Su Vivienda 3. Beneficios de Mudarse 4. Pago por Sustitución de Vivienda – Inquilinos y Algunas Otras Personas 5. Inquilinos con “Section 8”  6. Pago por Reemplazamiento de Vivienda para  Propietarios de Residencias 7. Calificación y Solicitudes para Registrar Reclamaciones de Reubicación  8. Último Recurso en Asistencia en Vivienda  9. Acuerdo de Arrendamiento  10.  Procedimientos de Apelación o Reclamo 11. Implicaciones en Impuestos de los Beneficios de Reubicación  12. Solicitud de Presencia Legal  13. No Discriminación y Equidad de Vivienda 14. Información Adicional y Asistencia Disponibles  1964, Título VIII del Acta de Derechos Civiles de 1968, y otras leyes estatales y federales aplicables para prevenir la discriminación y la equidad de vivienda. Usted puede archivar una reclamación si cree que ha sido víctima de discriminación. Para detalles contacte a RCTC.   Los responsables de proporcionarle asistencia en reubicación esperan asistirle en la medida de lo posible para minimizar los apuros que implica la reubicación en una nueva vivienda. Su cooperación será de gran ayuda y muy apreciada. Si tiene alguna pregunta en cualquier momento del proceso, por favor no dude en contactar a su representante de reubicación en Overland, Pacific & Cutler.      14. INFORMACIÓN ADICIONAL Y ASISTENCIA DISPONIBLES   deben consultar con su propio asesor de impuestos o consejero legal para determinar el estado actual de dichos pagos.    (Revelación de la Circular 230 del IRS: Para asegurar la conformidad con los requerimientos impuestos por el IRS, le informamos que cualquier asesoría de impuestos contenida en esta comunicación (incluyendo cualquier documento adjunto) no tuvo la intención o fue escrito para ser usado, y no puede ser usado, con el propósito de (i) evitar penalidades relacionadas con impuestos bajo el Código Interno de Ingresos o (ii) promocionar mercadeo o recomendar a otra entidad cualquier asunto discutido aquí)  Para ser elegible para recibir beneficios de reubicación en proyectos de reubicación financiados con fondos federales, todos los miembros del hogar que sean desplazados tienen que presentar información con respecto a la legalidad de su presencia en los Estados Unidos. Cualquier miembro del hogar que no esté legalmente en los Estados Unidos o se niegue a proporcionar esta información se le pueden negar los beneficios de reubicación, a menos que dicha inhabilidad resultase en un excepcional y extremadamente inusual apuro para el cónyuge, pariente o hijo del extranjero, siendo cualquiera de éstos un ciudadano o un extranjero admitido para recibir residencia permanente. Un excepcional y extremadamente inusual apuro es definido como un impacto adverso  significante y demostrable en la salud o seguridad, existencia continuada en la unidad familiar y cualquier otro impacto determinado por RCTC que afecte negativamente al cónyuge, pariente o hijo del extranjero. Los beneficios de reubicación serán prorrateados para reflejar el número de miembros del hogar con presencia legal certificada en los EE. UU.  Ninguna persona, por motivos de raza, color, nacionalidad o sexo, debe ser excluida de la participación en, ser rechazada para recibir beneficios de, o estar sometida a discriminación bajo el programa de asistencia en reubicación de RCTC conforme al Título VI del Acta de Derechos Civiles de 12. SOLICITUD DE PRESENCIA LEGAL  13. NO DISCRIMINACIÓN Y EQUIDAD DE VIVIENDA La vivienda en la que usted vive está en el área de un proyecto que se está proponiendo para ampliar la autopista SR‐91. Sí y cuando el proyecto suceda, y sea necesario que usted se mude de su vivienda, usted podría ser elegible para recibir ciertos beneficios. Usted será notificado oportunamente acerca de la fecha límite para mudarse. Por favor lea esta información, ya que le ayudará a determinar su elegibilidad y a cuánto ascienden los beneficios de reubicación que usted podría recibir bajo la ley federal. Usted necesitará presentar información correcta y a tiempo para determinar sus beneficios de reubicación. La información es voluntaria, pero si no la proporciona usted podría no recibir los beneficios o podría tardarse más para que se le pague. Le sugerimos que guarde esta declaración informativa que le servirá como referencia.  RCTC ha contratado a la firma profesional Overland, Pacific & Cutler, Inc. (OPC) para que le brinde a usted asistencia en la reubicación. La firma profesional está disponible para explicarle el programa y los beneficios. En la carátula encontrará su dirección y teléfono.  POR FAVOR NO SE MUDE PREMATURAMENTE. ESTA NO ES UNA NOTIFICACIÓN PARA QUE DESALOJE SU VIVIENDA. Sin embargo, si usted decide mudarse antes de lo requerido, tiene que contactar a su representante en Overland, Pacific & Cutler, Inc., para que no se arriesgue a perder algún beneficio. Este es sólo un folleto de información general y su intención no es dar una descripción detallada ya sea de la ley o de las regulaciones contenidas en el programa de asistencia en la  reubicación de RCTC.   Por favor siga pagando su renta a su arrendatario actual, o usted podría ser desalojado y pondría en riesgo los beneficios de reubicación a los que usted podría tener derecho. Una vez que RCTC adquiera la propiedad, a usted también podría exigírsele que pague la renta a RCTC.  1. INFORMACIÓN GENERAL   RCTC, a través de sus representantes, le asistirá en la búsqueda de una vivienda de reemplazo comparable brindándole información sobre unidades de vivienda disponibles. Le invitamos a que usted mismo busque activamente este tipo de vivienda. Cuando encuentre una vivienda de reemplazo apropiada, su asesor de reubicación realizará una inspección para brindarle su opinión acerca de si la vivienda cumple con los requerimientos de ser una vivienda decente, segura y sanitaria. Una vivienda decente, segura y sanitaria cuenta con espacio adecuado para sus ocupantes, tiene impermeabilización adecuada, calefacción y sistemas eléctrico y de acueducto y alcantarillado. Su nueva vivienda tiene que pasar la inspección antes de que se autoricen los pagos de asistencia en la reubicación.   Si se le pide que se mude como resultado del proyecto, usted recibirá un pago para ayudarle a pagar la mudanza de sus propiedades personales. Los gastos reales, razonables y necesarios para mudar las pertenencias de su vivienda pueden ser determinados con base en los siguientes métodos:   Un Pago Fijo de Mudanza basado en el número de habitaciones que usted ocupa (ver abajo); o Un pago por sus Gastos Razonables de Mudanza y Otros Gastos Relacionados basado en al menos dos presupuestos por escrito y recibos; o En algunos casos, una combinación de los dos. Por ejemplo, usted puede elegir Mudanza por su Cuenta, recibiendo un pago basado en el Cuadro Fijo de Costos de Mudanza Residencial que está abajo, además de contratar a una firma profesional en mudanzas para mover su gran piano y/u otros artículos que requieran manejo especial. En este caso, debe haber un ajuste en el número de habitaciones que califican dentro del Cuadro Fijo de Costos de Mudanza Residencial. 2. ASISTENCIA PARA ENCONTRAR LA REUBICACION DE SU VIVIENDA  3. BENEFICIOS DE MUDARSE Como resultado de la acción de RCTC de comprar potencialmente la propiedad en que usted vive, usted puede convertirse en un inquilino de RCTC. Si esto sucede, se le pedirá que firme un contrato de arrendamiento en el que se especificará la renta mensual a pagar, cuándo son las fechas límite de pago de arrendamiento, cómo se hacen los pagos y otra información pertinente.  Cualquier persona con un reclamo por una determinación con respecto a la elegibilidad para, o la cantidad de, un pago autorizado por el Programa de Asistencia en Reubicación de RCTC puede hacer que se revise la solicitud de apelación por parte de RCTC de acuerdo con el proceso de apelaciones. Los detalles completos sobre los procedimientos de apelaciones están disponibles si se los solicita a RCTC.   El Código de Sección 7269 del Gobierno de California indica que ningún pago de reubicación debe ser considerado como ingreso para los propósitos de la Ley de Impuestos Personales por Ingresos (Personal Income Tax Law), Parte 10 (comenzando con la Sección 17001) de la División 2 del Código de Ingresos y Sistema Fiscal, o la Ley de Impuestos a Bancos y Corporaciones, Parte 11 (comenzando con la Sección 23001) de la División 2 del Código de Ingresos y Sistema Fiscal. Además, las regulaciones federales (49 CFR Parte 24, Sección 24.209) también indica que ningún pago recibido bajo esta parte (Parte 24) debe ser considerado como ingreso para propósitos del Código Interno de Ingresos de 1954, el cual ha sido reasignado como el Código Interno de Ingresos de 1986.  La declaración precedente no tiene la intención de ser un consejo legal con respecto a las consecuencias en cuestión de impuestos, y los desplazados 10. PROCEDIMIENTOS DE APELACIÓN O RECLAMO 9. ACUERDO DE ARRENDAMIENTO 11. IMPLICACIONES EN IMPUESTOS DE LOS BENEFICIOS DE REUBICACIÓN   Para calificar para un Pago por Reemplazo de Vivienda, usted tiene que arrendar o comprar y ocupar una unidad de reemplazo comparable en el plazo de un año después de lo siguiente:  Para un inquilino, la fecha en que usted se muda de la vivienda de reemplazo. Para un propietario‐ocupante, lo que suceda más tarde de estas opciones: a. La fecha en que usted reciba el pago final por el reemplazo de   vivienda, o  b. La fecha en que RCTC cumpla con su obligación de hacer disponible   viviendas de reemplazo comparables.  Todas las reclamaciones por beneficios de reubicación tienen que ser registradas con RCTC en el plazo de dieciocho (18) meses a partir de la fecha en la que usted reciba el pago final por su propiedad, o la fecha en la que usted se mude, lo que suceda primero. Si no hay viviendas disponibles de reemplazo comparables cuando se le pida que se mude, o si el reemplazo de vivienda no está disponible entre los parámetros monetarios descritos arriba, RCTC le brindará asistencia de Último Recurso en Vivienda (Last Resort Housing) para permitirle arrendar o comprar una vivienda de reemplazo oportunamente. La asistencia de Último Recurso en Vivienda está basada en las circunstancias individuales de la persona desplazada. Su representante de reubicación le explicará el proceso para determinar si usted califica para una asistencia de Último Recurso.  Si usted es un inquilino, y elige comprar en lugar de arrendar una vivienda de reemplazo comparable, la cantidad total de su asistencia para renta y elegibilidad para solicitar debe ser destinada al pago inicial y gastos incidentales elegibles de la vivienda que planea comprar.  7. CALIFICACIÓN Y SOLICITUDES PARA REGISTRAR RECLAMACIONES DE REUBICACIÓN  8. ÚLTIMO RECURSO EN ASISTENCIA EN VIVIENDA A. Pago Fijo de Mudanza (Mudanza por su Cuenta) Un Pago Fijo de Mudanza se basa en el número de habitaciones que usted ocupa y si los muebles que usa son suyos o no. El pago está basado en un cuadro de cifras aprobado por RCTC, y oscila, por ejemplo, desde $450 por una habitación si usted no es dueño de los muebles hasta $2,365 por ocho habitaciones si usted es dueño de los muebles.  (Vea el cuadro para detalles). Su representante de reubicación le informará de las cantidades que usted es elegible para recibir, si usted elige este tipo de pago. Si usted selecciona un pago fijo, usted será responsable de hacer los preparativos para mudarse por su cuenta, y RCTC no asume ninguna responsabilidad por cualquier pérdida o daño a sus pertenencias. Un pago fijo también incluye conexión de servicios públicos, revisión de crédito y otros cargos relacionados con la mudanza.   B. Gasto Real de Mudanza (Mudanza Comercial) Si usted desea contratar los servicios de una empresa con licencia para realizar mudanzas y que RCTC pague la cuenta, usted puede reclamar el costo REAL de la mudanza de sus pertenencias hasta a una distancia de 50 millas. Su representante de reubicación le informará del número de cotizaciones de mudanza que se requieren (si se requiere alguna), y le asistirá para determinar los servicios que necesita que le preste el experto en mudanzas para que lo apruebe RCTC. Para Fijo de Mudanza CALIFORNIA (Eficaz 2012) Ocupante posee muebles:  1 habitación $685  2 habitaciones $880  3 habitaciones $1,100  4 habitaciones $1,295  5 habitaciones $1,570  6 habitaciones $1,815  7 habitaciones $2,090  8 habitaciones $2,365  Cada habitación adicional    $250  Ocupante no posee muebles:  1 habitación $450 Cada habitación adicional    $85  Usted puede ser elegible para recibir un pago de hasta $5,250 por ayudar a arrendar o comprar una vivienda de reemplazo comparable. Para calificar usted tiene que ser un inquilino que ha ocupado la propiedad por lo menos 90 días previos a la iniciación de las negociaciones con el dueño de la propiedad o ser el dueño de la propiedad y haberla ocupado durante los 90 a 180 días previos a la iniciación de las negociaciones.  A.  Asistencia de Arrendamiento. Si usted desea arrendar su vivienda de reemplazo, sus beneficios máximos de asistencia de arrendamiento será basado en la diferencia en un periodo de cuarenta y dos (42) meses entre la renta que usted tiene que pagar por una vivienda de reemplazo comparable y el mínimo de su renta actual o el treinta por ciento (30%) de sus ingresos familiares mensuales si el total de sus ingresos brutos es clasificado como “bajos ingresos” por los programas de Encuesta Anual de Límites de Ingresos para Vivienda Pública y Sección 8 del Departamento de Vivienda y Desarrollo Urbano de los EE. UU. (HUD, por sus siglas en inglés). Se le pedirá que provea al representante de reubicación con la documentación de la renta mensual y verificación de ingresos familiares mensuales antes de la determinación de su elegibilidad para recibir este pago. –O– B.  Ayuda con el Pago Inicial. Si usted califica, y desea comprar una casa como reemplazo de su vivienda, usted puede aplicar hasta la cantidad total del pago de su asistencia para arrendamiento para el pago inicial y gastos incidentales no recurrentes. Su representante de reubicación le aclarará los procedimientos necesarios para solicitar este pago.  Si se le pide que se mude, usted puede ser elegible para transferir su elegibilidad a la Sección 8 (Section 8) al lugar de reubicación. En estos casos, una vivienda de reemplazo comparable será determinada con base en la composición de su familia al momento del desalojo y los criterios del programa actual de vivienda. Ésta podría ser de diferente tamaño a la propiedad que usted ocupa actualmente. Su representante de reubicación le brindará consejería y otros servicios de asesoría así como los beneficios de mudanza.   4. PAGO POR SUSTITUCIÓN DE VIVIENDA – INQUILINOS Y ALGUNAS OTRAS PERSONAS 5. INQUILINOS CON “SECTION 8” A. Si usted es propietario y ocupa una vivienda que va a ser comprada por RCTC por los menos 180 días antes de la iniciación de la negociación, usted puede ser elegible para recibir un pago de hasta $22,500 para ayudarle en la compra de una unidad de reemplazo comparable. Este pago es para cubrir lo siguiente:  1.  Diferencial del Precio de Compra ‐ Una cantidad que, cuando se suma a la cantidad por la que RCTC compró su propiedad, es igual o menor que el costo real de su vivienda de reemplazo; o la cantidad determinada por RCTC como necesaria para comprar una vivienda de reemplazo comparable. Su representante de reubicación le explicará los dos métodos.  2. Diferencial del Interés de la Hipoteca ‐ La cantidad que cubre el costo incrementado del interés, si existe, requerido para financiar una vivienda de reemplazo. Su representante de reubicación le explicará las condiciones limitantes.  3. Gastos Incidentales—Esos gastos incidentales que tienen que hacerse una vez al comprar una unidad de reemplazo, como cargos de plica (escrow), cargos por registro y cargos por reporte de crédito. Gastos recurrentes como impuestos propagados y primas de seguros no son compensables.  B. Opción de Asistencia en Arrendamientos ‐ Si usted es un propietario‐ocupante y elige arrendar en lugar de comprar una vivienda de reemplazo, usted puede ser elegible para recibir un pago como asistencia en arrendamiento hasta por la cantidad que usted podría haber recibido bajo el Diferencial de Precio de Compra, explicado arriba.  El pago se determinará con base en la diferencia entre el precio de renta justo en el mercado de la vivienda que usted ocupa y la renta que tiene que pagar por una vivienda de reemplazo comparable.   Si usted recibe un pago de asistencia en arrendamiento, como se describe arriba, y después decide comprar una vivienda de reemplazo, usted puede hacer una aplicación para recibir un pago igual a la cantidad que usted hubiera recibido si hubiera comprado inicialmente una vivienda de reemplazo comparable, menos la cantidad que usted ya ha recibido mediante pagos de asistencia en arrendamientos.  6. PAGO POR REEMPLAZAMIENTO DE VIVIENDA PARA PROPIETARIOS DE RESIDENCIAS   Updated Relocation Plan for the SR-91 Corridor Improvement Project 47 Exhibit J: Public Comments And Responses October 31, 2012 <<CLAIMANT NAME>> <<DISPLACEMENT ADDRESS>> <<CITY>>, <<STATE>> <<ZIP CODE>> Re: Riverside County Transportation Commission State Route 91 Corridor Improvement Project Availability of Updated Relocation Plan for Occupants for Public Review Dear «First» «Last»: The Updated Relocation Plan for Occupants, relative to the proposed State Route 91 Corridor Improvement Project, affecting the property you occupy at <<DISPLACEMENT ADDRESS>>, is available for review at the following locations: Riverside County Transportation Commission 4080 Lemon Street, 3rd Floor Riverside, CA 92501 Corona Public Library 650 South Main Street Corona, CA 92882 City of Corona, Public Works Department 400 South Vicentia Avenue, 2nd Floor, Suite 210 Corona, CA 92882 or via the Riverside County Transportation Commission Project Website: www.sr91project.info The review and comment period for the plan is from Friday, November 2 to Monday, December 3, 2012. Comments, if any, to the Plan can be made in writing to: William Von Klug Right of Way Manager Riverside County Transportation Commission P.O. Box 12008 Riverside, CA 92502-2208 Comments must be postmarked no later than December 3, 2012. Following the review and comment period, the Plan will be considered for adoption at a regularly scheduled meeting of the Riverside County Transportation Commission. Sincerely, William Von Klug Right of Way Manager • • • RIVERSIDE COUNTY TRANSPORTATION COMMISSION DATE: December 12, 2012 ------------------------------------------~· TO: Riverside County Transportation Commission r------------+------------- William Von Klug, Right of Way Manager Marlin Feenstra, Project Delivery Director FROM: r------------+------------- THROUGH: Anne Mayer, Executive Director r------------+------------- lnterstate 21 5 Central Widening Project From Scott Road to Nuevo SUBJECT: Road -Construction and Maintenance Agreement ~================== STAFF RECOMMENDA T/ON: This item is for the Commission to: 1 ) 2) Approve Agreement No. 12-31-082-00 between the Commission, Caltrans, and Burlington Northern Santa Fe Railway Company. (BNSF) for work associated with construction and maintenance of the Ethanac Road overhead bridge related to the Interstate 21 5 Central widening project; and Authorize the Chair or the Executive Director I pursuant to legal counsel review, to execute the agreement on behalf of the Commission. BACKGROUND INFORMA T/ON: The Commission will soon begin improvements to 1-21 5 from Scott Road to Nuevo Road. Proposed construction includes widening 1-215 from two to three lanes in each direction, widening undercrossings, replacing the Perris Boulevard overcrossing and the D Street on-ramp overcrossing in the city of Perris, and widening the Ethanac Road overhead bridge where the San Jacinto Branch Line crosses under the freeway. The proposed work at the Ethanac Road overhead bridge requires a new construction and maintenance agreement with Caltrans, and also requires flagging services by BNSF during construction. At its May 9, 2012 meeting, the Commission approved a draft construction and maintenance agreement with Caltrans for the Ethanac Road overhead bridge; however, subsequent negotiations with BNSF resulted in the need for a three party construction and maintenance agreement among the Commission, Caltrans, and BNSF. While the intent previously was to accomplish flagging using a separate agreement with BNSF, the three party agreement will include flagging . Agenda Item 71 115 The corresponding cost of the flagging work needed for the construction and maintenance for the Ethanac Road overhead bridge was determined through negotiations between Caltrans and BNSF, and is estimated at $200,000. Staff is recommending the Commission authorize the· Chair or the Executive Director to execute the construction and maintenance agreement on behalf of the Commission, which is attached. This item is being brought directly to the Commission because construction activity is expected to begin January 3, 2013, and the agreement is required to be executed prior to beginning construction at this location, which is one of the first items of work. Negotiations regarding the flagging services to be included in the agreement and the related amount were only recently concluded. Financial Information In Fiscal Year Budget: I Yes I Year: I FY 2012/13 Amount: I $200,000 Source of Funds: I STIP-RIP, Measure A, CMIA Budget Adjustment: I No GL!Project Accounting No.: 003023 65520 00000 0000 262 31 81401 Fiscal Procedures Approved: ~~ I Date: I 12/04/12 Attachment: Overpass Agreement No. 12-31-082-00 Agenda Item 71 116 • • • • • • STATE AGREEMENT NO. 08Rl78 RCTC AGREEMENT NO. 12-31-082-00 OVERPASS AGREEMENT (Ethanac Overhead Widening) 08-RIV-215 PM 27.54 BNSF File No. BF10003571 Ethanac Overhead Widening U.S. D.O.T. No. 027353R LS 7605 MP 10.64 San Jacinto Subdivision This Agreement ("Agreement"), is executed to be effective as of this day of ------· 20_ ("Effective Date"), by and amongst the RIVERSIDE COUNTY TRANSPORTATION COMMISSION ("COMMISSION"), the BNSF RAILWAY COMPANY, a Delaware corporation ("BNSF"), and the STATE of CALIFORNIA, acting by and through it's Department of Transportation, hereinafter referred to as ("STATE"). COMMISSION, BNSF AND STATE are sometimes referred to herein, collectively, as "Parties". RECITALS: A. WHEREAS, COMMISSION is the owner in fee of that certain real property commonly referred to as a portion of the San Jacinto Subdivision ("Rail Corridor") . B. WHEREAS, BNSF has a freight easement for use of the Rail Corridor and is currently responsible for maintenance thereof pursuant to its Shared Use Agreement with COMMISSION. C. WHEREAS, STATE owns, operates, repairs and maintains the existing Ethanac Overhead Bridges on Interstate 215, Bridge No. 56-0175L and 56-0175R, PUC Crossing No. 002X-22.00-A, ("Ethanac Overhead Bridges") which span over State Route 74 ("STATE right of way") and the Rail Corridor pursuant to that certain construction and maintenance agreement ("Prior Agreement") and easement agreement ("Existing Easement") entered into by Atchison, Topeka and Santa Fe Railway Company and STATE on August 9, 1961. D. WHEREAS, the Existing Easement is attached hereto as Exhibit B and is incorporated herein by reference. The COMMISSION property subject to the Existing Easement shall be referred to herein as "Property". E. WHEREAS, COMMISSION wishes to complete work related to median widening of the Ethanac Overhead Bridges ("Project"), as more particularly described in Exhibit A as part of a larger Interstate 215 Highway Widening Project. F. WHEREAS, the plans and specifications for Project will be reviewed and approved by BNSF and the STATE prior to construction, and the plans and specifications for the falsework shall be subject to approval by BNSF's Construction Manager, who shall be identified in writing by BNSF prior to commencement of construction of the Project (collectively the "Plans and Specifications"). Plans and Specifications must be submitted for review and be approved by BNSF prior to commencement of any work on the Project. Parties agree that Project shall be constructed in accordance with approved Plans and Specifications G. WHEREAS, COMMISSION will obtain or shall require its contractor to obtain flagging services for Project work and/or any required maintenance work from BNSF or SOUTHERN CALIFORNIA REGIONAL RAIL AUTHORITY ("SCRRA"), following the maintenance shift date as that is defined in the 17336.02200\7596495.3 117 current Shared Use Agreement including its amendment and amendments or related agreement thereto ("Maintenance Shift Date"). H. WHEREAS, upon completion and STATE acceptance of Project, STATE will operate, repair and maintain the constructed Ethanac Overhead Bridges, and all portions thereof (the "Structure") within State's right of way and over and across COMMISSION's right of way. I. WHEREAS, Parties agree that the Existing Easement is sufficient for the operation, repair and maintenance of the Structure on Property. J WHEREAS, STATE and COMMISSION desire to enter into this Agreement whereby COMMISSION will grant STATE a license to enter Property for purposes of repair and maintenance of the Structure. K WHEREAS, STATE and COMMISSION have entered into a Cooperative Agreement No. 08-1533 on May 11 , 2012, for construction of the above referenced Interstate 215 Highway Widening project, including construction of Project over the Rail Corridor (collectively, the "Cooperative Agreement"). L WHEREAS, except as otherwise specified herein, COMMISSION has prepared the plans and specifications for Project. M WHEREAS, COMMISSION is the sponsor (as that term is used in the Cooperative Agreement) for construction of Project, and is responsible for construction funding and constructing Project NOW, THEREFORE, in consideration of the mutual covenants and agreements of the Parites contained herein, the receipt and sufficiency of which are hereby acknowledged, the Parties agree as follows: ARTICLE I -SCOPE OF WORK • 1.1 The term "Project" as used in this Agreement shall include any and all work related to the • median widening of the Ethanac Overhead Bridges, as more particularly shown on the Exhibit A attached hereto and incorporated herein, including, but not limited to, any and all street improvements, utility relocations, preliminary and construction engineering and contract preparation. The term "Structure" as used in this Agreement, shall mean the Ethanac Overhead Bridges, as widened. ARTICLE II-BNSF OBLIGATIONS In consideration of the covenants of COMMISSION set forth herein and the faithful performance thereof, BNSF agrees as follows: 2.1 BNSF will furnish all labor, materials, tools, and equipment for railroad work required for the construction of the Project, such railroad work and the estimated cost thereof being as shown on Exhibit Q attached hereto and made a part hereof. In the event construction on the Project has not commenced within six (6) months following the Effective Date, BNSF may, in its sole and absolute discretion, revise the cost estimates set forth in said Exhibit D. In such event, the revised cost estimates will become a part of this Agreement as though originally set forth herein. Any item of work incidental to the items listed on Exhibit D not specifically mentioned therein may be included as a part of this Agreement upon written approval of COMMISSION, which approval will not be unreasonably withheld. Construction of the Project will include the following railroad work by BNSF if shown on Exhibit D: (a) Procurement of materials, equipment and supplies necessary for the railroad work; (b) Preliminary engineering, design, and contract preparation; (c) Furnishing of flagging services necessary for the safety of BNSF's property and the operation of its trains during construction of the Project as set forth in further detail on Exhibit C, attached to this Agreement and made a part hereof; 2 17336.02200\7596495.3 118 • • • • (d) Furnishing engineering and inspection as required in connection with the construction of the Project; and (e) Providing a contract project coordinator, at COMMISSION's expense, to serve as a project manager for the Project. 2.2 BNSF will do all railroad work set forth in Article II, Section 2.1 above on an actual cost basis. BNSF shall have the sole discretion to determine whether any item of railroad work must be performed by its own employees as required by its labor agreements, including any applicable collective bargaining agreements, or whether any item of railroad work may be performed by contractor(s). 2.3 COMMISSION agrees to reimburse BNSF for work of an emergency nature caused by COMMISSION or COMMISSION's contractor in connection with the Project which BNSF deems is reasonably necessary for the immediate restoration of railroad operations, or for the protection of persons or BNSF property. Such work may be performed by BNSF with prior notification of COMMISSION and COMMISSION agrees to fully reimburse BNSF for all such emergency work. 2.4 BNSF may charge COMMISSION for insurance expenses, including self-insurance expenses, when such expenses cover the cost of Employer's Liability (including, without limitation, liability under the Federal Employer's Liability Act) in connection with the construction of the Project. Such charges will be considered part of the actual cost of the Project, regardless of the nature or amount of ultimate liability for injury, loss or death to BNSF's employees, if any. 2.5 During the construction of the Project, BNSF will send COMMISSION progressive invoices detailing the costs of the railroad work performed by BNSF under this Agreement. COMMISSION must reimburse BNSF for completed force-account work within forty-five (45) days of the date of the invoice for such work unless it disputes the charges, in which case, all undisputed charges will be paid within forty- five (45) days. Upon completion of the Project, BNSF will send COMMISSION a detailed invoice of final costs, segregated as to labor and materials for each item in the recapitulation shown on Exhibit D. Pursuant to this section and Article V, Section 5.6 herein, COMMISSION must pay the final invoice within ninety (90) days of the date of the final invoice. BNSF will assess a finance charge of .033% per day (12% per annum) on any unpaid sums or other charges due under this Agreement which are past its credit terms. The finance charge continues to accrue daily until the date payment is received by BNSF, not the date payment is made or the date postmarked on the payment. Finance charges will be assessed on delinquent sums and other charges as of the end of the month and will be reduced by amounts in dispute and any unposted payments received by the month's end. Finance charges will be noted on invoices sent to COMMISSION under this section. For purposes of computing the time limits prescribed by Section 911.2 of the California Government Code for the presentment of a claim against the COMMISSION the cause of action for failure to reimburse BNSF for the costs of the railroad work performed by it pursuant to this Agreement shall be deemed to have accrued one hundred and eighty (180) days of the date of the final invoice. ARTICLE Ill-COMMISSION OBLIGATIONS In consideration of the covenants of BNSF set forth herein and the faithful performance thereof, COMMISSION agrees as follows: 3.1 COMMISSION must furnish to BNSF and STATE plans and specifications for the Project. Four sets of said plans (reduced size 11" x 17"), and two copies of specifications in English Units, must be submitted to BNSF for approval prior to commencement of any construction. BNSF will give COMMISSION final written approval of the plans and specifications substantially in the form of Exhibit E, attached to this Agreement and made a part hereof. Upon BNSF's final written approval of the plans and specifications, said plans and specifications will become part of this Agreement and are hereby incorporated herein. Any approval of the plans and specifications by BNSF shall in no way obligate BNSF in any manner with respect to the finished product design and/or construction. Any approval by BNSF shall mean only that the plans and specifications meet the subjective standards of BNSF, and such 3 I 7336.02200\7596495.3 119 approval by BNSF shall not be deemed to mean that the plans and specifications or construction is structurally sound and appropriate or that such plans and specifications meet applicable regulations, • laws, statutes or local ordinances and/or building codes. 3.2 COMMISSION must make any required application to the California Public Utilities Commission ("CPUC") for an order authorizing construction of the Project and furnish to the Commission plans of the proposed construction, approved by BNSF, together with a copy of this Agreement and obtain all required permits and approvals for the construction of the Project. 3.3 COMMISSION must provide for and maintain minimum vertical and horizontal clearances, as required in Exhibit F and as approved by BNSF as part of the plans and specifications for the Project. 3.4 COMMISSION must acquire all rights of way necessary for the construction of the Project. 3.5 COMMISSION must construct the Project as shown on the attached Exhibit A and do all work ("COMMISSION's Work") provided for in the plans and specifications for the Project, except railroad work that will be performed by BNSF hereunder. COMMISSION must furnish all labor, materials, tools and equipment for the performance of COMMISSION's Work. The principal elements of COMMISSION's Work are as follows: (a) Widening of the Structure; (b) All necessary grading and paving, including backfill of excavations and restoration of disturbed vegetation on the Rail Corridor; (c) Provide suitable drainage, both temporary and permanent; (d) (e) Installation and maintenance of an 8-ft. high fence and/or concrete combination (throw fence) on the outside barrier of the Structure; Job site cleanup including removal of all construction materials, concrete debris, surplus soil, refuse, contaminated soils excavated by the COMMISSION as part of demolition or construction activities, asphalt debris, litter and other waste materials to the satisfaction of BNSF; 3.6 COMMISSION must apply D.O:T. Crossing number 027353R and Public Utility Commission Crossing number 002X-22-00-A in a conspicuous location on the Structure. 3.7 COMMISSION's work must be performed by COMMISSION or COMMISSION's contractor in a manner that will not endanger or interfere with the safe and timely operations of BNSF. 3.8 COMMISSION must require its contractor(s) to notify BNSF's Roadmaster at least thirty (30) calendar days prior to requesting a BNSF flagman in accordance with the requirements of Exhibit C attached hereto. Additionally, COMMISSION must require its contractor(s) to notify BNSF's Manager of Public Projects thirty (30) calendar days prior to commencing work on BNSF property or near BNSF tracks. 3.9 COMMISSION or its contractor(s) must submit four (4) copies of any plans (including two sets of calculations in English Units) for proposed shoring, falsework or cribbing to be used over, under, or adjacent to BNSF's tracks to BNSF's Manager of Public Projects for approval. The shoring, falsework or cribbing used by COMMISSION's contractor shall comply with the BNSF Bridge Requirements set forth on Exhibit F and all applicable requirements promulgated by STATE and federal agencies, departments, commissions and other legislative bodies. Additionally, COMMISSION must submit for approval two (2) copies of a professionally engineered demolition plan with applicable calculations to BNSF's Manager of Public Projects. 3.10 COMMISSION must require compliance with the obligations set forth in this agreement, including Exhibit C and Exhibit C-1, and incorporate in each prime contract for construction of the Project, or the specifications therefore (i) the provisions set forth in Article Ill; (ii) the provisions set forth in Article 4 I 7336.02200\7596495.3 120 • • • • • IV; and (iii) the prov1s1ons set forth in Exhibit C, Exhibit C-1 and Exhibit F, attached hereto and by reference made a part hereof. 3.11 Except as otherwise provided below in this Section 3.13, all construction work performed hereunder by COMMISSION for the Project will be pursuant to a contract or contracts to be let by COMMISSION, and all such contracts must include the following: (a) All work performed under such contract or contracts within the limits of BNSF's right-of- way must be performed in a good and workmanlike manner in accordance with plans and specifications approved by BNSF; (b) Changes or modifications during construction that affect safety or BNSF operations must be subject to BNSF's approval; (c) No work will be commenced within BNSF's right-of-way until each of the prime contractors employed in connection with said work must have (i) executed and delivered to BNSF a letter agreement in the form of Exhibit C-1, and (ii) delivered to and secured BNSF's approval of the required insurance; and (d) To facilitate scheduling for the Project, COMMISSION shall have its contractor give BNSF's representative (Greg Rousseau, 909-386-4079) eight (8) weeks advance notice of the proposed times and dates for work windows. BNSF and COMMISSION's contractor will establish mutually agreeable work windows for the Project. BNSF has the right at any time to revise or change the work windows, due to train operations or service obligations. BNSF will not be responsible for any additional costs and expenses resulting from a change in work windows. Additional costs and expenses resulting from a change in work windows shall be accounted for in the contractor's expenses for the Project. (e) The plans and specifications for the Project must be in compliance with the Bridge Requirements set forth on Exhibit F, attached to this Agreement and incorporated herein. 3.12 COMMISSION must advise the appropriate BNSF Manager of Public Projects, in writing, of the completion date of the Project within thirty (30) days after such completion date. Additionally, COMMISSION must notify BNSF's Manager of Public Projects, in writing, of the date on which COMMISSION and/or its Contractor will meet with BNSF for the purpose of making final inspection of the Project. 3.13 If it is in COMMISSION's best interest, COMMISSION may direct that the construction of the Project be done by day labor under the direction and control of COMMISSION, or if at any time, in the opinion of COMMISSION, the contractor has failed to prosecute with diligence the work specified in and by the terms of said contract, COMMISSION may terminate its contract with the contractor and take control over the work and proceed to complete the same by day labor or by employing another contractor(s) provided, however, that any contractor(s) replacing the original contractor(s) must comply with the obligations in favor of BNSF set forth above. If such construction is performed by day labor, COMMISSION agrees to cease all construction related activities until such time as (i) BNSF has procured, at COMMISSION's sole cost and expense, a Railroad Protective Liability insurance policy naming BNSF as the insured, as required by Exhibit C-1, and (ii) COMMISSION has reimbursed BNSF for the costs to obtain the Railroad Protective Liability insurance policy. 3.14 COMMISSION must give BNSF's Manager of Public Projects written notice to proceed ("Notice to Proceed") with the railroad work after receipt of necessary funds for the Project. BNSF will not begin the railroad work (including, without limitation, procurement of supplies, equipment or materials) until written notice to proceed is received from COMMISSION. The Notice to Proceed must reference BNSF's file number BF 10003130. 3.15 COMMISSION must provide one set of as built plans {prepared in English Units) to BNSF and STATE, as well as one set of computer diskettes containing as built CAD drawings of the Structure and identifying the software used for the CAD drawings. The "as built plans" must comply with the Bridge 5 17336.02200\7596495.3 121 Requirements set forth on Exhibit F and depict all information in BNSF engineering stationing and mile post pluses. The "as built plans" must also include plan and profile, structural bridge drawings and • specifications, and drainage plans. All improvements and facilities must be shown. ARTICLE IV-STATE OBLIGATIONS 4.1 In addition to the terms and conditions set forth elsewhere in this Agreement, including, but not limited to, the terms and conditions stated in Exhibit F, the parties agree to the following terms upon completion of construction of the Project: (a) STATE will own and maintain, at its sole cost