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12 December 10, 2014 Commission• • • TIME/DATE: LOCATION: Riverside Counly Trunsportotion Commission MEETING AGENDA 9:30 a.m. /Wednesday, December 10, 2014 BOARD ROOM County of Riverside Administrative Center 4080 Lemon Street, First Floor, Riverside ltiJll COMMISSIONERS .q, Chair -Marion Ashley Vice Chair -Daryl Busch Second Vice Chair -Scott Matas Kevin Jeffries, County of Riverside John F. Tavaglione, County of Riverside To Be Appointed, County of Riverside John J. Benoit, County of Riverside Marion Ashley, County of Riverside Deborah Franklin I Art Welch, City of Banning Brenda Knight I Jeff Fox, City of Beaumont Joseph DeConinck I Tim Wade, City of Blythe Ella Zanowic I Jeff Hewitt, City of Calimesa To Be Appointed I Randy Bonner, City of Canyon Lake Greg Pettis I To Be Appointed, City of Cathedral City Steven Hernandez/ To Be Appointed, City of Coachella Karen Spiegel I Eugene Montanez, City of Corona Scott Matas I Russell Betts, City of Desert Hot Springs Adam Rush I Ike Bootsma, City of Eastvale To Be Appointed I Robert Youssef, City of Hemet To Be Appointed/ Ted Mertens, City of Indian Wells Glenn Miller I Michael Wilson, City of Indio Frank Johnston I Micheal Goodland, City of Jurupa Valley To Be Appointed I To Be Appointed, City of La Quinta Bob Magee I Natasha Johnson, City of Lake Elsinore Scott Mann I Wallace Edgerton, City of Menifee Jesse Molina I George E. Price, City of Moreno Valley Rick Gibbs I Jonathan Ingram, City of Murrieta Berwin Hanna I Kathy Azevedo, City of Norco Jan Harnik /Susan Marie Weber, City of Palm Desert Ginny Foat I Paul Lewin, City of Palm Springs Daryl Busch I To Be Appointed, City of Perris Ted Weill I To Be Appointed, City of Rancho Mirage Steve Adams I Andy Melendrez, City of Riverside Andrew Kotyuk I Scott Miller, City of San Jacinto To Be Appointed 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. COMM-COMM-00042 Tara Byerly From: Sent: To: Cc: Subject: Alexandra Rackerby Friday, December 05, 2014 10:43 AM Alexandra Rackerby Tara Byerly RCTC Commission meeting agenda Good morning Commissioners, The Riverside County Transportation Commission agenda for Wednesday December 10, 2014 is posted on our website at http://www.rctc.org/uploads/media items/december-10-2014-agenda.original.pdf Let me know if you have any questions or concerns. Thank you. Respectfully, Allie Rackerby Riverside County Transportation Commission P.O. Box 12008 Riverside, CA 92502 (951) 787-7141 1 Tara Byerly From: Sent: To: Cc: Subject: Alexandra Rackerby Friday, December 05, 2014 10:53 AM Alexandra Rackerby Tara Byerly RCTC Commission meeting agenda Good morning Commissioner Alternates, The Riverside County Transportation Commission agenda for Wednesday December 10, 2014 is posted on our website at http://www.rctc.org/uploads/media items/december-10-2014-agenda.original.pdf Let me know if you have any questions or concerns. Thank you. Respectfully, Allie Rackerby Riverside County Transportation Commission P.O. Box 12008 Riverside, CA 92502 (951) 787-7141 1 • • • RIVERSIDE COUNTY TRANSPORTATION COMMISSION www.rctc.org AGENDA* *Actions may be taken on any item listed on the agenda 9:30a.m. Wednesday, December 10, 2014 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 agenda items, will be available for inspection by members of the public prior to the meeting at the Commission office, 4080 Lemon Street, Third Floor, Riverside, CA, and on the Commission's website, www.rctc.org. In compliance with the Americans with Disabilities Act and Government Code Section 54954.2, if 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. 2. 3. 4. 5. CALL TO ORDER PLEDGE OF ALLEGIANCE ROLL CALL PUBLIC COMMENTS -Each individual speaker is limited to speak three (3) continuous minutes or Jess. 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. APPROVAL OF MINUTES -NOVEMBER 12, 2014 Riverside County Transportation Commission Agenda December 10, 2014 Page 2 6. PUBLIC HEARING -ADOPTION OF AMENDMENTS TO RESOLUTIONS OF NECESSITY FOR THE ACQUISITION OF A BUILDING ACCESS EASEMENT, BUILDING DEMOLITION EASEMENT, PERMANENT FIRE SERVICE CONNECTION EASEMENT, TEMPORARY ACCESS EASEMENT, TEMPORARY CONSTRUCTION EASEMENT, AND TEMPORARY EROSION CONTROL EASEMENT INTERESTS IN PORTIONS OF CERTAIN REAL PROPERTY BY EMINENT DOMAIN, MORE PARTICULARLY DESCRIBED AS ASSESSOR PARCEL NOS. 118-330-017; 118-160-071; 118-330-009; AND LOCATED IN CORONA, RIVERSIDE COUNTY, CALIFORNIA, FOR THE STATE ROUTE 91 CORRIDOR IMPROVEMENT PROJECT, BETWEEN PIERCE STREET ON THE EAST TO THE COUNTY LINE ON THE WEST, IN RIVERSIDE COUNTY, CALIFORNIA Page1 Overview This item is for the Commission to: 1) 2) 3) Conduct a hearing to consider the adoption of amendments to resolutions of necessity, including providing all parties interested in the affected property and their attorneys, or their representatives, an opportunity to be heard on the issues relevant to the resolutions of necessity; Make the following findings as hereinafter described in this report: a) The public interest and necessity require the proposed project; b) The project is planned or located in a manner that will be most compatible with the greatest public good and the least private injury; c) The real property to be acquired is necessary for the project; and d) The offer of just compensation was not made in this circumstance. Instead, the property owner has stipulated to an additional deposit based on an appraisal for Fair Market Value. Adopt Amendments to Resolution of Necessity Nos. 13-060; 14-002; 14-017, and "Resolutions of Necessity for the Acquisition of Property Interests in Certain Real Property, by Eminent Domain, More Particularly Described as Assessor Parcel Nos. 118-330-017; 118-160-071; 118-330-009, and located in Corona, Riverside County, California", for the State Route 91 Corridor Improvement Project (SR-91 CIP), Between Pierce Street on the East to the Riverside/Orange County Line on the West, in Riverside County, California. 7. ADDITIONS / REVISIONS -The Commission may add an item to the Agenda after making a finding that there is a need to take immediate action on the item and that the item came to the attention of the Commission subsequent to the posting of the agenda. An action adding an item to the agenda requires 2/3 vote of the Commission. If there are less than 2/3 of the Commission members present, adding an item to the agenda requires a unanimous vote. Added items will be placed for discussion at the end of the agenda. 8. CONSENT CALENDAR -All matters on the Consent Calendar will be approved in a single motion unless a Commissioner(s) requests separate action on specific item(s). Items pulled from the Consent Calendar will be placed for discussion at the end of the agenda. • • • • • • Riverside County Transportation Commission Agenda December 10, 2014 Page 3 8A. RESOLUTION TO AMEND THE APPENDIX OF THE CONFLICT OF INTEREST CODE Page66 Overview This item is for the Commission to adopt Resolution No. 14-033, "Resolution of the Riverside County Transportation Commission Amending the Appendix of the Conflict of Interest Code Pursuant to the Political Reform Act of 1974". 88. PROPOSED 2015 COMMISSION/COMMITTEE MEETING CALENDAR Page 75 Overview This item is for the Commission to adopt its 2015 Commission/Committee Meeting Calendar. BC. UPGRADE OF RECORDS MANAGEMENT SOFTWARE 8D. Page BO Overview This item is for the Commission to approve the upgrade of the Commission's records management software from LibertyNET to Hyland OnBase in the amount of $121,340, plus a $12,160 contingency, for a total amount not to exceed $133,500. FISCAL YEAR 2013/14 COMMISSION AUDIT RESULTS Page82 Overview This item is for the Commission to: 1) Receive and file the Fiscal Year 2013/14 a) Comprehensive Annual Financial Report (CAFR); b) Local Transportation Fund (LTF) Financial and Compliance Report; c) State Transit Assistance (STA) Fund Financial and Compliance Report; d) Proposition lB Rehabilitation and Security Project Accounts Financial and Compliance Report; e) Compliance Report for Single Audit; f) Commercial Paper Compliance Report; g) Auditor Required Communications Report; h) Agreed-Upon Procedures Report related to the Appropriations Limit Calculation; i) Agreed-Upon Procedures Report related to the Commuter Assistance Program incentives; and j) Management certifications. Riverside County Transportation Commission Agenda December 10, 2014 Page 4 SE. FISCAL VEAR 2012/13 SINGLE AUDIT REPORT Page307 Overview This item is for the Commission to receive and file the revised Fiscal Year 2012/13 Compliance Report for Single Audit. SF. ADOPT RESOLUTION NO. 14-032 FOR COMMISSION ELECTION TO HEAR FUTURE RESOLUTIONS OF NECESSITY FOR THE STATE ROUTES 71/91 INTERCHANGE PROJECT AND DESIGNATION OF COMMISSION'S GENERAL COUNSEL Page325 Overview This item is for the Commission to adopt Resolution No. 14-032, "Resolution of the Riverside County Transportation Commission Electing to Hear Future Resolutions of Necessity for the State Routes 71/91 Interchange Project and Designation of Commission's General Counsel to Process Resolution of Necessity Packages for the Project." • 9. CLAY STREET GRADE SEPARATION Overview Page328 • This item is for the Commission to: 1) Deobligate $1,021,000 in 2009 Measure A Western County Economic Development Funds previously allocated to the county of Riverside (County) for the Interstate 215/Van Buren interchange project; 2) Reprogram $1,021,000 in 2009 Measure A Western County Economic Development Funds to the County for the Clay Street grade separation project; 3} Approve Agreement No. 08-31-124-01 Amendment No. 1 to Agreement No. 08-31-124-00, with the County for the 1-215/Van Buren interchange project and the Clay Street grade separation project; and 4) Approve an increase of $1,021,000 in FY 2014/15 budgeted 2009 Measure A Western County Economic Development expenditures. 10. ELECTION OF RIVERSIDE COUNTY TRANSPORTATION COMMISSION OFFICERS AND APPOINTMENT OF EXECUTIVE COMMITTEE MEMBERS Page332 Overview This item is for the Commission to: 1) The Commission to conduct an election of officers for 2015 -Chair, Vice Chair, and Second Vice Chair; • • • • Riverside County Transportation Commission Agenda December 10, 2014 Pages 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 Springs, Indian Wells, Indio, La Quinta, Palm Desert, Palm Springs, and Rancho Mirage to appoint one representative to the Executive Committee. 11. ITEM(S) PULLED FROM CONSENT CALENDAR AGENDA 12. COMMISSIONERS/ EXECUTIVE DIRECTOR REPORT 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. 13. CLOSED SESSION 13A. CONFERENCE WITH REAL PROPERTY NEGOTIATORS Pursuant to Government Code Section 54956.8 Item APN(s) 234-250-009 234-250-010 234-250-011 234-250-012 1 234-250-013 234-250-032 234-250-034 234-250-036 234-250-038 14. ADJOURNMENT Property Purchaser(s) AHO, LP Ed Haddad, Principal The next Commission meeting and is scheduled to be held at 9:30 a.m., Wednesday, January 14, 2015, Board Chambers, First Floor, County Administrative Center, 4080 Lemon Street, Riverside . RIVERSIDE COUNTY TRANSPORTATION COMMISSION ROLL CALL DECEMBER 10, 2014 County of Riverside, District I County of Riverside, District II County of Riverside, District Ill 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 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 Governor's Appointee, Caltrans District 8 Absent [:J [:J ;( [:J [:J [:J [:J [:J [:J ft [:J D [:J D ;J D [:J D ~ D D [:J D [:J ~ D } [:J ~ [:J [:J RIVERSIDE COUNTY TRANSPORTATION COMMISSION COMMISSIONER SIGN-IN SHEET DECEMBER 10, 2014 NAME AGENCY +s E_MAIL ADDRESS • . AGENDA ITEM 5 • MINUTES • • • • • • • • RIVERSIDE COUNTY TRANSPORTATION COMMISSION MINUTES Wednesday, November 12, 2014 1. CALL TO ORDER The Riverside County Transportation Commission was called to order by Chair Marion Ashley at 9:34 a.m. in the Board Room at the County of Riverside Administrative Center, 4080 Lemon Street, Riverside, California, 92501. 2. PLEDGE OF ALLEGIANCE Commissioner Terry Henderson led the Commission in a flag salute. 3. ROLL CALL 4. Commissioners/ Alternates Present Marion Ashley Andrew Kotyuk Ben Benoit Bob Magee John J. Benoit Scott Mann Roger Berg Scott Matas Daryl Busch Glenn Miller Mary Craton Jesse Molina Joseph DeConinck Basem Muallem Ginny Foat Greg Pettis Deborah Franklin Mary T. Roche Rick Gibbs Adam Rush Berwin Hanna Karen Spiegel Jan Harnik Jeff Stone Terry Henderson John F. Tavaglione Steven Hernandez Ted Weill Kevin Jeffries Ella Zanowic Frank Johnston PUBLIC COMMENTS Commissioners Absent Steve Adams Ron Roberts Larry Smith The Commission Officers presented plaques to the departing Commissioners Roger Berg, Mary Craton, Terry Henderson, and Jeff Stone in honor of their exceptional service and dedication to the Commission . Riverside County Transportation Commission Minutes November 12, 2014 Page 2 Commissioners Roger Berg, Mary Craton, and Terry Henderson each thanked the • Commission for its leadership and dedication to transportation. Commissioner Jeff Stone congratulated the Commissioners leaving office and thanked the Commission for its leadership in transportation issues and for being the most progressive transportation commission in the state. He promised as the next state Senator and representing Riverside County exclusively, to be a champion of transportation projects and a champion of local control. Chair Ashley expressed appreciation to the Commissioners leaving office and wished them all well. Douglas Hanson, Councilmember from the city of Indian Wells, expressed appreciation to Commissioner Henderson as a mentor, confidant, rideshare companion, and friend. Louis Davis, Region Public Affairs Manager for Southern California Edison (Edison), referred to Agenda Item 10, "Recommendations for Private Uses and Utilities on Commission Property", approved at the October 2014 Commission meeting and expressed Edison has significant issues about. the format to determine fees for crossing Commission-owned property. He discussed Edison's concerns regarding staff's assessment encroachments, its inability to operate under the guidance of the Commission's recommendations, and future locations identified for Phase II on the Perris Valley project. He suggested the Commission • request staff to have meaningful negotiations with Edison. Chair Ashley urged Mr. Davis to meet with Anne Mayer after the Commission meeting. 5. APPROVAL OF MINUTES -SEPTEMBER 10 AND OCTOBER 8, 2014 M/S/C (Henderson/J. Benoit) to approve the September 10 and October 8, 2014 minutes as submitted. Abstain: Kotyuk and Rush 6. PUBLIC HEARING -ADOPTION OF AN AMENDED RESOLUTION OF NECESSITY FOR THE ACQUISITION OF FEE AND TEMPORARY CONSTRUCTION EASEMENT INTERESTS IN PORTIONS OF CERTAIN REAL PROPERTY BY EMINENT DOMAIN, MORE PARTICULARLY DESCRIBED AS ASSESSOR PARCEL NOS. 118-050-001, 118-050-002, 118-111-001, 118-111-002, 118-111-003, AND 118-111-004; LOCATED IN CORONA, RIVERSIDE COUNTY, CALIFORNIA, FOR THE STATE ROUTE 91 CORRIDOR IMPROVEMENT PROJECT, BETWEEN PIERCE STREET ON THE EAST TO THE COUNTY LINE ON THE WEST, IN RIVERSIDE COUNTY, CALIFORNIA Chair Ashley opened the public hearing and called upon legal counsel to explain the nature. and scope of this hearing. • • • Riverside County Transportation Commission Minutes November 12, 2014 Page 3 Steve DeBaun, legal counsel, explained the purpose of this hearing is for the Board to consider the adoption of Amended Resolution of Necessity No. 13-081 for the acquisition of real property for the State Route 91 Corridor Improvement Project (SR-91 CIP). He stated at the conclusion of this hearing, the Board will be asked to adopt the resolution of necessity and he listed the findings. He explained the purpose of this hearing is to consider the need for acquisition of the property and not to consider the value of the property. Jennifer Harmon, Clerk of the Board, verified the proofs of mailing that certify the notice was sent to the property owners of said parcel number are on file with the Commission. Ms. Harmon stated there were no written objections, protests, and requests to be heard from owners and their representatives. No. APNs CPNs Owner Amended Request to RON No. be Heard 1 118-050-001 22171-7 VEJ Corona, LP. 13-081 No 118-050-002 22171-8 118-111-001 118-111-002 118-111-003 118-111-004 Mark Lancaster, Right of Way Manager, presented the amended resolution of necessity for the SR-91 CIP and discussed the following areas: • Four findings required by the Board; • Project Map -Parcel location in the project area; • Parcel list; • Offers of just compensation and contact summary for the parcels; • Aerial view of parcels; and • Staff recommendation. Chair Ashley called on any persons who wish to be heard that have an interest in property. There were no requests to speak. Chair Ashley then called on any other persons who wish to be heard. There were no requests to speak. At this time, Chair Ashley closed the public hearing . Riverside County Transportation Commission Minutes November 12, 2014 Page 4 M/S/C (Gibbs/Hanna) to: 1) Conduct a hearing to consider the adoption of amendments to resolutions of necessity, including providing all parties interested in the affected property and their attorneys, ~their representatives, an opportunity to be heard on the issues relevant to the resolutions of necessity; 2) Make the following findings as hereinafter described in this report: a) The public interest and necessity require the proposed project; b) The project is planned or located in a manner that will be most compatible with the greatest public good and the least private injury; c) The real property to be acquired is necessary for the project; and d) The offer of just compensation was not made in this circumstance. Instead, the property owner has stipulated to an additional deposit based on an appraisal for Fair Market Value. 3) Adopt Amendment to Resolution of Necessity No. 13-081, "Resolution of Necessity for the Acquisition of Property Interests in Certain Real Property, by Eminent Domain, More Particularly Described as Assessor Parcel Nos. 118-050-001, 118-050-002, 118-111-001, 118-111-002, 118-111-003, and 118-111-004 located in Corona, Riverside County, California", for the State • Route 91 Corridor Improvement Project (SR-91 CIP), Between Pierce Street • on the East to the Riverside/Orange County Line on the West, in Riverside County, California. 7. ADDITIONS / REVISIONS There was a revision to Agenda Item No. 13B, "Closed Session". Anne Mayer explained staff corrected one of the parcel numbers for Section No. 1, Item No. 5, and a deletion of a property purchase for Section No. 2, Item No. 2. 8. CONSENT CALENDAR Chair Ashley requested to pull Agenda Item No. 8F, "Request for Funding a Project Study Report Equivalent Document for the Ethanac Road/State Route 74/Nichols Road Corridor", in order to hear the public speaker's comment. M/S/C (Pettis/Spiegel) to approve the following Consent Calendar items. SA. QUARTERLY FINANCIAL STATEMENTS Receive and file the Quarterly Financial Statements for the period ended September 30,2014. • • • • Riverside County Transportation Commission Minutes November 12, 2014 Page 5 88. QUARTERLY SALES TAX ANALYSIS Receive and file the sales tax analysis for Quarter 2 2014 (Q2 2014). BC. QUARTERLY INVESTMENT REPORT Receive and file the Quarterly Investment Report for the quarter ended September 30, 2014. SD. SINGLE SIGNATURE AUTHORITY REPORT Receive and file the Single Signature Authority report for the first quarter ended September 30, 2014. SE. AGREEMENT WITH DALKE & SONS CONSTRUCTION, INC. FOR STATE ROUTE 91 CORRIDOR IMPROVEMENT PROJECT RIGHT OF WAY PROPERTY MITIGATION PACKAGE2 BG. Approve an increase in contingency for Agreement No. 14-31-022-00 with Dalke & Sons Construction, Inc. (Dalke & Sons) for the construction of State Route 91 Corridor Improvement Project (SR-91 CIP) Right of Way (ROW) Property Mitigation Package 2 in an amount not to exceed $150,000 for a revised total contingency of $279,768 and a total amount not to exceed $1,577,448. AMENDMENT TO RIGHT OF WAY ON-CALL SUPPORT SERVICES AGREEMENTS Approve an increase of $500,000 for the following agreements for the continued support of on-call right of way (ROW) services for a revised amount not to exceed an aggregate value of $2 million; a) Agreement No. 12-31-012-00 with Overland Pacific & Cutler (OPC); and b) Agreement No. 12-31-038-00 with Epic Land Solutions (Epic). SH. PERRIS VALLEY LINE -MORENO VALLEY MARCH FIELD STATION UTILITY EASEMENT 1) 2) Approve the Easement Deed between the Commission and Western Municipal Water District (WMWD), for Assessor Parcel Number (APN) 297-100-036, for maintenance and access at the future Moreno Valley March Field (MVMF) Station without any monetary compensation exchanged between the parties; and Authorize the Chair or Executive Director, pursuant to legal counsel review, to execute the grant of easement on behalf of the Commission. Riverside County Transportation Commission Minutes November 12, 2014 Page 6 81. 2015 WESTERN RIVERSIDE COUNTY MEASURE A SPECIALIZED TRANSIT THREE- YEAR CALL FOR PROJECTS 1) Approve the release of the 2015 Western Riverside County Measure A Specialized Transit Three-Year Call for Projects (2015 Call for Projects) for approximately $8 million covering fiscal years 2015/16 -2017 /18 for Western Riverside County (Western County); and 2) Authorize staff to advertise the availability of funding and to solicit project proposals from non-profit agencies and other interested parties or operators. 9. COACHELLA VALLEY-SAN GORGONIO PASS RAIL CORRIDOR STUDY UPDATE AND AMENDMENT FOR ON-CALL RAIL OPERATIONS SUPPORT SERVICES Sheldon Peterson, Rail Manager, presented the Coachella Valley-San Gorgonio Pass Rail Corridor Study update and the amendment for the on-call rail operation support services, highlighting the following areas: • Map that depicts the rail route options and potential changes; • • • • Agency coordination outreach and connecting Southern California; Phase I technical elements; The Commission's service development plan and the process; Federal Railroad Administration(FRA) grant; and • Rail on-call contract amendment. Mr. Peterson noted two brochures were distributed to the Commissioners titled Coachella Valley-San Gorgonio Pass Corridor Rail Service and the Project Status Update: November 2014. Commissioner John Benoit expressed appreciation for the importance of this rail service. He expressed gratitude to Commissioner Pettis for all of his hard work and commended staff for bringing it forward and moved the staff recommendation. In response to Commissioner Ginny Foat's clarification regarding the attendance for the Technical Advisory Committee (TAC) meeting scheduled on November 17, Sheldon Peterson replied the TAC is comprised of staff, therefore, invitations were sent to the public works directors of each city for nominations to the TAC. In addition, other agencies will be involved such as Orange County Transportation Authority, San Bernardino Associated Governments, and the railroad. • • In response to Commissioner Foat's clarification about the tribes and key dates for the • Coachella Valley, Sheldon Peterson replied all of the tribes in the Coachella Valley are on • • • Riverside County Transportation Commission Minutes November 12, 2014 Page 7 the invite list. Mr. Peterson explained staff reached out to the Coachella Valley Greater Palm Springs Visitors Association and did receive the key dates for Coachella Valley. Anne Mayer reiterated the outreach plan is a living document and can be modified as it moves along. As the Commission goes through this process, more and more people are becoming engaged. She discussed building upon the work being done with the rail study and how Southern California Association of Governments will take on an additional, broader corridor study as a result of conversations in Los Angeles and San Bernardino about rail. M/S/C (J. Benoit/Stone) to: 1} 2} Receive an update on the progress for the Coachella Valley San Gorgonio Pass Rail Corridor Study and; Approve an increase of $1 million for the following agreements for the continued support of on-call rail operations support services for a revised amount not to exceed an aggregate value of $2 million; a) Agreement No. 12-25-022-00 with HOR Engineering, Inc. (HOR}; b) Agreement No. 12-25-035-00 with Parsons Brinckerhoff, Inc. (Parsons Brinckerhoff); and c) Agreement No. 12-25-036-00 with STV Incorporated (STV}. 10. 91 PROJECT-CONSTRUCTION UPDATE David Thomas, Toll Project Manager, presented the State Route 91 Corridor Improvement Project (91 Project} update, highlighting the following areas: • Milestone dates; • Project area map; • Aerial maps of the 91 Project -Proposed improvement west of Interstate 15, bridges and earthwork currently under construction, west of 1-15 interchange bridge construction Phase II and Phase Ill; • Construction photos -From 1-15 to SR-91, and SR-71 for the relocation of the BNSF Railway tracks, sanitary sewer relocation, demolition of existing bridge girders, and the construction of Bridges 25 and 28; • • Aerial maps -SR-91 CIP proposed improvement at Green River Road and Green River Road bridges and earthwork currently under construction; Construction photos -SR-91 the installation of Bridge 2 foundation elements and false work along BNSF tracks; Concrete batch plant location adjacent southbound 1-15 to westbound SR-91 temporary connector; Rough grading of median along southbound and northbound 1-15; Bridge 29 shoring installed at Abutment 2; Right of way (ROW) property demolition at Buena Vista Mobile Home Park; ROW property mitigation at Wardlow Road the demolition of front building face; and Riverside County Transportation Commission Minutes November 12, 2014 Page 8 • Upcoming construction -1-15 median paving, East Grand Boulevard bridge construction, Frontage Road realignments, Main Street closure for bridge demolitions, and Main Street 12-month ramp closures; and • Stay connected. At this time, Commissioner Adam Rush left the meeting. Chair Ashley expressed his hope for design-build to be used for the 1-10/SR-60/Beaumont Avenue interchange. Commissioner Karen Spiegel expressed her ongoing support of the project and the look of the city now that the project is under construction. Anne Mayer noted the 91 Project Helpline is available 24 hours a day, seven days a week, as the contractor is also working 24 hours a day, seven days a week. She expressed this is a major undertaking and staff is trying to reach out to as many people as possible to sign up to receive the construction alerts. This project impacts any commuter trying to travel between Riverside County and Orange County, and staff is trying to mitigate those impacts. She discussed the achievements with the significant construction in a flood channel over the railroad tracks adjacent to the Prado Dam and acknowledged those partner agencies • involved that helped to keep this project on schedule. • 11. ITEM(S) PULLED FROM CONSENT CALENDAR FOR DISCUSSION SF. REQUEST FOR FUNDING A PROJECT STUDY REPORT EQUIVALENT DOCUMENT FOR THE ETHANAC ROAD/STATE ROUTE 74/NICHOLS ROAD CORRIDOR Mike Naggar, representing The ADP Corporation, The Rancon Group, the Knott Family, and the Lansing Companies, expressed appreciation for the Commission moving forward the project study report for this corridor. He discussed the history of the proposed project. He explained if the Commission opens the Ethanac corridor it will reduce traffic to several cities in that area. He expressed to Commissioner Stone that he cannot describe how sorely Commissioner Stone will be missed in his region. He expressed appreciation to Commissioner Craton for playing a significant part in the formation of three regional task forces. M/S/C (Mann/Busch) to approve $2 million of 2009 Measure A Western County New Corridors Program funds for the preparation of a Project Study Report Equivalent (PSRE) document that the county of Riverside will serve as lead agency. At this time, Commissioners J. Benoit and Kevin Jeffries left the meeting. • • • • Riverside County Transportation Commission Minutes November 12, 2014 Page 9 12. COMMISSIONERS/EXECUTIVE DIRECTOR'S REPORT 12A. Commissioner Scott Mann expressed appreciation for traveling on the newly paved lanes on the recently opened 1-215 northbound between Scott Road and Ethanac Road. He thanked and congratulated staff, the contractor, and Caltrans. Chair Ashley commended Caltrans for communicating with the city of Menifee's City Council and keeping the city of Menifee apprised. 128. Commissioner Henderson expressed appreciation for all the Commission staff has done throughout the years as it has been outstanding and likewise to the current Commissioners, past Commissioners, and the Caltrans representative. 12C. Commissioner Berwin Hanna briefed the Commission on the Veterans' Day event at Ingalls Park. 12D. Chair Ashley and Commissioner John Tavaglione discussed the Veterans' Day ceremonies they attended on November 11. Anne Mayer: • Recognized CVAG's iransportation Program Manager Michael Shoberg and wished him well in his retirement; and • Expressed extreme gratitude and congratulations on behalf of the Commission staff to all of the departing Commissioners. At this time, Commissioners Foat, Rick Gibbs, Scott Matas, Glenn Miller, Basen Muallem, and Tavaglione left the meeting. 13. CLOSED SESSION 13A. CONFERENCE WITH LEGAL COUNSEL: EXISTING LITIGATION Pursuant to Government Code Section 54956.9 (d)(l) Case No. RIC 1309887 138. CONFERENCE WITH REAL PROPERTY NEGOTIATORS Pursuant to Government Code Section 54956.8 Item APN(s) Property Owner(s) 1 101-140-034 AT&SF 2 101-140-013 Adfam 3 101-140-031 Green River Properties 4 101-120-009 State of California -Chino Hills State Park Riverside County Transportation Commission Minutes November 12, 2014 Page 10 5 101-040-004 6 101-040-007 7 101-140-007 Item APN(s) 234-250-009 234-250-010 234-250-011 234-250-012 1 234-250-013 234-250-032 234-250-034 234-250-036 234-250-038 United States of America -Prado Dam 7191 LLC Sean McCoy and Myron Sukut, Principals Kroll/Day Property Purchaser(s) AHO, LP Ed Haddad, Principal There were no announcements from closed session item(s). 15. ADJOURNMENT • There being no further business for consideration by the Riverside County Transportation • Commission, adjourned the meeting at 11:17 a.m. The next Commission meeting is scheduled to be held at 9:30 a.m., Wednesday, December 10, 2014, in the Board Room, at the County of Riverside Administrative Center, 4080 Lemon Street, Riverside, California. Respectfully submitted, Jennifer Harmon Clerk of the Board • • • • AGENDA ITEM 6 PUBLIC HEARING • • • • • • RIVERSIDE COUNTY TRANSPORTA T/ON COMMISSION DATE: December 10, 2014 TO: Riverside County Transportation Commission FROM: Mark Lancaster, Right of Way Manager THROUGH: Anne Mayer, Executive Director Adoption of Amendments to Resolutions of Necessity for the Acquisition of a Building Access Easement, Building Demolition Easement, Permanent Fire Service Connection Easement, Temporary Access Easement, Temporary Construction Easement, and Temporary Erosion Control Easement Interests SUBJECT: in Portions of Certain Real Property by Eminent Domain, More Particularly Described as Assessor Parcel Nos. 118-330-017; 118-160-071; 118-330-009; and Located in Corona, Riverside County, California, for the State Route 91 Corridor Improvement Project, Between Pierce Street on the East to the County Line on the West, in Riverside County, California STAFF RECOMMENDATION: This item is for the Commission to: 1) 2) 3) Conduct a hearing to consider the adoption of amendments to resolutions of necessity, including providing all parties interested in the affected properties and their attorneys, or their representatives, an opportunity to be heard on the issues relevant to the resolutions of necessity; Make the following findings as hereinafter described in this report: a) The public interest and necessity require the proposed project; b) The project is planned or located in a manner that will be most compatible with the greatest public good and the least private injury; c) The real property to be acquired is necessary for the project; and d) The offer of just compensation has been made to the owner. Adopt Amendments to Resolution of Necessity Nos. 13-060; 14-002; 14-017, and "Resolutions of Necessity for the Acquisition of Property Interests in Certain Real Property, by Eminent Domain, More Particularly Described as Assessor Parcel Nos. 118-330-017; 118-160-071; 118-330-009, and located in Corona, Riverside County, California", for the State Route 91 Corridor Improvement Project (SR-91 CIP), Between Pierce Street on the East to the Riverside/Orange County Line on the West, in Riverside County, California . Agenda Item 6 1 BACKGROUND INFORMATION: The Commission is being asked to consider the adoption of amended resolutions of necessity to acquire the interests in the parcels listed below. These interests are required for construction of the SR-91 CIP. The power of eminent domain is used by the Commission only as a last resort to obtain interests necessary for public highway projects after 1) negotiations have stalled; 2) the owner requested the Commission proceed directly to eminent domain for tax or other advantages; or 3) the eminent domain process is necessary to clear the title to the property. In this case, an offer of just compensation has been made to the owner for the full Fair Market Value as determined by an appraisal. Commission staff attempted to negotiate amicable settlements in good faith, and will continue to do so throughout the process. Fair Market Value is defined by the state of California and is one of the most inclusive definitions in the United States. It requires the highest and best use of the property be considered. All of the Commission's appraisals must meet the California definition of Fair Market Value. • One of the requirements for acquiring property for improvement projects is that an offer of just compensation be made to the owners of the property. The Commission makes these offers in person whenever possible. The amount of compensation is determined by appraisals prepared by independent appraisal firms licensed by the Bureau of Real Estate Appraisers. The content of these appraisals, what elements are considered in these appraisals, and the methodologies • used in the preparation are all proscribed by various laws and the Uniform Standards of Appraisal Practice {USPAP), published by the Appraisal Foundation. The Federal Government recognizes the USPAP as generally accepted appraisal standards and requires USPAP compliance for appraisers in federally related transactions. Every appraisal calculates the market value of the acquisition as defined by the California Code of Civil Procedure, based on the highest and best use, as defined in USPAP, and includes consideration of severance damages and project benefits {also defined in the California Code of Civil Procedure). In every case, the owner is invited to accompany the appraiser during the site visit so that as much information as possible is considered in the appraisal. A review appraisal prepared by a different certified appraiser is then conducted to ensure all proper procedures have been followed. Additionally, in accordance with state law, every owner is offered up to $5,000 to reimburse the owner for the cost to have their own appraisal prepared. Staff will bring to the Commission those interests that meet one of the criteria above. The timing of these resolutions will balance the need to give the owners as much time as possible to reach an agreement, while at the same time allowing enough time for the Commission to go through the process to obtain possession in time to avoid delays to the design-build contractor. The legal process from adoption of the resolutions of necessity to receiving legal possession of the properties takes approximately 150 days. Agenda Item 6 2 • • • • California eminent domain law provides that a public entity may not commence with eminent domain proceedings until its governing body adopts a resolution of necessity, which resolution may only be adopted after the governing body has given each party with an interest in the affected property, or their representatives, a reasonable opportunity to appear and be heard on the following matters: 1) The public interest and necessity require the proposed project; 2) The project is planned or located in a manner that will be most compatible with the greatest public good and the least private injury; 3) The real property to be acquired is necessary for the project; and 4) The offer of just compensation has been made to the property owner. Since an agreement has not been reached with some property owners, it may be necessary to acquire necessary interests by eminent domain. The initiation of the eminent domain process is accomplished by the Commission's adoption of resolutions of necessity for the affected properties. Record property owners must be afforded an opportunity to appear at the hearing and lodge objections. A notice of this hearing was sent by first class mail to the owners, and stated the Commission's intent to consider the adoption of resolutions, the right of the property owners to appear and be heard on these issues, and that failure to file a written request to appear would result in a waiver of the right to appear and be heard. The Commission scheduled this hearing at which all persons who filed a written request in compliance with applicable law may appear and be heard. Aerial views of the parcels subject to this staff report in relation to the SR-91 CIP are attached. Finding 1: Public Interest and Necessity Require the Project SR-91 in Riverside County ranks among the nation's worst commutes. Stop and go traffic is the norm, especially during morning and late afternoon rush hours. Traffic congestion on eastbound SR-91 between the cities of Anaheim and Corona is routinely among the worst 15 areas in the nation. SR-91 is continuing to experience increased congestion as a result of population growth in Riverside and San Bernardino Counties and the increase in jobs in Los Angeles and Orange Counties. Demographic projections for the Southern California Association of Governments region show population and employment in Orange and Riverside Counties are forecast to increase substantially by 2035. As a result, traffic volumes on SR-91 are expected to increase by approximately 50 percent by 2035, which would result in even greater congestion and delays on SR-91. The existing travel demand on SR-91 has led to a heavy directional commute pattern between Los Angeles, Orange, and Riverside Counties that is projected to continue into the future. SR-91 is the only major highway that links Orange and Riverside Counties. Extending from the Orange County/Riverside County line in the city of Corona to Pierce Street in Riverside, the Agenda Item 6 3 SR-91 CIP will add mixed flow lanes, tolled express, improve interchanges, bridges, ramps, and local streets. New freeway to freeway ramp connections between the SR-91 and Interstate 15 also will be made. The SR-91 CIP is designed to reduce delays, improve air quality, offer a choice between regular (mixed flow) lanes and express lanes, allow faster emergency response, relieve local street congestion, and provide better access to public transit and commuter rail. Finding 2: The Project is Planned or Located in a Manner Most Compatible with Greatest Public Good and Least Private Injury A thorough analysis was conducted to find the single best location for the SR-91 CIP. Environmental analyses and findings indicate the chosen alignment uniquely satisfies engineering, public health, and environmental issues, and is the most compatible with the greatest public good and least private injury. To minimize private injury, a thorough analysis regarding the need for each property and each interest was conducted in the planning stages of the SR-91 CIP. Efforts during the planning stages included conducting public outreach meetings and seeking feedback about the SR-91 CIP alignment and potential impacts. Staff also met regularly with various local agencies and businesses to determine if modifications to the alignment were necessary to minimize impacts . These efforts continued over the course of years to ensure the alignment design achieved the greatest public good with the least private injury. As part of the acquisition process, unless settlement was reached within the first 30 days after an offer was made, every property owner was provided an opportunity to participate in meetings with project staff. The goal of these meetings was to minimize private injury not only on the basis of information staff obtained through the planning process, but also on the information provided by the property owners. As a result, staff has in some cases included mitigation measures to reduce and minimize impacts to the property. Compliance with the California Environmental Quality Act has been satisfied by Caltrans' certification of an environmental impact report (EIR) in its role as lead agency on August 8, 2012, and the Commission's subsequent consideration of that certified EIR in its role as a responsible agency on November 14, 2012. Finding 3: The Real Property to be Acquired is Necessary for the Project The property interests sought below have been analyzed to determine if a feasible design alternative that exists would alleviate the need for the interest. As indicated above, the property owners of the interests were invited to meet with project staff and provide input to address any concerns the owners may have with the design of the SR-91 CIP in the manner proposed and the necessity of the acquisition. To the extent the property owners raised such Agenda Item 6 4 • • • • • • concerns; staff took those concerns into consideration and attempted to make design modifications as feasible as possible. In the end, staff recommends the following interests in real property are necessary for the project. Amended RON No. 13-060 -Owner: El-Corona, LLC, a California Limited Liability Company; APN 118-330-017; CPN 22176-9 The real property commonly known as Assessor Parcel No. (APN} 118-330-017 is owned in fee by El-Corona, LLC, a California limited liability company (El-Corona} and is located at 1351 Pomona Road, in Corona, California. The site area is 3.18 acres (or 138,646 square feet} and is zoned M-1, allowing for light manufacturing, industrial, and limited office and retail uses. The property is currently improved with a commercial industrial building housing a self-storage facility and other businesses, associated parking lot, and other improvements. The property is bounded by neighboring industrial/commercial properties to the north, east, and west, and Pomona Road to the south. The preliminary design required five sub-parcels: A fee acquisition of 12,072 square feet of land area; a 21,542 square foot building demolition easement; a 52,762 square foot building access easement; and two temporary construction easements totaling 15,056 square feet of land area. The widening will primarily affect the existing building on the southern part of the property. As such, the Commission granted authorization to acquire various property interests with the adoption of Resolution of Necessity No. 13-060 on October 9, 2013, after which legal counsel initiated action to acquire the property interests by filing an eminent domain lawsuit in Riverside Superior Court on November 12, 2013 . It is now necessary to acquire a permanent fire service connection easement on this property. The land area affected by the fire service connection easement is 300 square feet. This easement is necessary because the fire suppression facilities are being relocated to accommodate the project. Accordingly, staff seeks to amend Resolution of Necessity No. 13-060, which was adopted on October 9, 2013, to acquire the needed additional interest in the subject property, including any improvements located thereon, for the purpose of a permanent fire service connection easement interest. An offer of just compensation for the additional easement interest was made to the property owner on November 7, 2014. Legal definition(s}, legal description(s} and/or plat map(s} of the portion sought to be acquired are attached as an exhibit to Resolution of Necessity No. 13-060. An aerial view of the parcel and the parcel's relationship to the SR-91 CIP is also attached. Formal notice of this hearing was waived by El-Corona. Notice of the date of the hearing was provided by e-mail to the property owner's legal counsel, pursuant to its request, on November 4, 2014 . Agenda Item 6 5 Amended RON No. 14-002 -Owner: Z Corona Properties, LLC, a California Limited Liability Company; APN 118-160-071; CPNs 22178-6, 22178-7, 22178 -8, 22178-9, 22178-10, and 22178-11 The real property commonly known as APN 118-160-071, is owned by Z Corona Properties, LLC, a California limited liability company and is located at 1247-1269 Pomona Road, Corona, California. The subject property is rectangular in shape and consists of 142,512 square feet of land area. The subject property is currently used as a multi-tenant industrial park and improved with 48,874 square feet of commercial buildings, associated parking lots, and other improvements. The property is bounded by neighboring commercial properties to the north and east, and Pomona Road to the south, and Sherman Avenue to the west. • The design of the SR-91 CIP necessitated the Commission acquire five sub-parcels: a 22,070 square foot fee acquisition, 321 square foot and 401 square foot temporary construction easements, a 3,049 square foot building demolition easement and a 9,450 square foot building access easement. The south side of the subject property is impacted due to the proposed widening of SR-91 approximately 52 feet to the north. The freeway widening will require the realignment of the westbound Lincoln Avenue on-ramp and a northerly shift of Pomona Road. The shift of Pomona Road north requires a fee acquisition which directly impacts the building commonly known as 1247 Pomona Road and located on the subject property. The project proposes to demolish a portion of the 1247 Pomona Road building and perform other parking lot improvements, which requires the building access easement, a building demolition • easement, and temporary construction easements. As such, the Commission granted authorization to acquire various property interests with the adoption of Resolution of Necessity No. 14-002 on January 8, 2014, after which legal counsel initiated action to acquire the property interests by filing an eminent domain lawsuit in Riverside Superior Court on January 31, 2014. Since adopting the original resolution of necessity and filing this action, there have been numerous communications with the property owner regarding additional construction work needed on the property. Specifically, a cut and reface on another building commonly known as the 1269 Pomona Road building will be completed pursuant to the property owner's request. As a result of those discussions, staff determined that it is necessary to acquire a building access easement, building demolition easement, permanent fire service connection easement, temporary access easement, temporary construction easement, and temporary erosion control easement interests for this property. The land area affected by the fire service connection easement is 300 square feet. This easement is necessary since the fire suppression facilities are being relocated to accommodate the project. Pursuant to the parties' stipulation filed with the court on November 21, 2014, it was not necessary to make a supplemental offer on this parcel and the property owner does not oppose the additional property rights being sought. Agenda Item 6 6 • • • • Accordingly, staff now seeks to amend Resolution 14-002, which was adopted on January 8, 2014, to acquire the needed additional interest in the subject property, including any improvements located thereon, for the purpose of a building access easement, building demolition easement, permanent fire service connection easement, temporary access easement, temporary construction easement, temporary erosion control easement interests. Legal definition(s}, legal description(s} and/or plat map(s) of the portion sought to be acquired are attached as an exhibit to Resolution of Necessity 14-002. An aerial view of the parcel and the parcel's relationship to the SR-91 CIP is also attached. The Notice of Hearing was mailed to the property owners on November 21, 2014. Amended RON No. 14-017 -Owner: Dvorak & Payne, Ltd., a Limited Partnership; APN 118-330-009; CPN 22175-9 The real property commonly known as APN 118-330-009 is owned in fee by Dvorak & Payne, Ltd., a limited partnership (Dvorak & Payne}. The ,subject property is located at 1441 Pomona Road, Corona, California. The property is roughly rectangular in shape and contains approximately 87,740 square feet of land area. The property is currently improved with a 39,268 square foot multi-tenant industrial building, associated parking lot, and other improvements. The property is bounded by neighboring industrial/commercial properties to the north, east, and west, and Pomona Road to the south. The preliminary design required six sub-parcels: A fee acquisition of 5, 708 square feet of land area, a 9,448 square foot building demolition easement, a 39,123 square foot building access easement, and three temporary construction easements totaling 11,299 square feet of land area. A portion of the subject property is impacted due to the widening of SR-91 and the reconfiguration of Pomona Road. SR-91 widens north 100 feet, which requires Pomona Road to be shifted north directly affecting the industrial building on the southern frontage of the subject property. A retaining wall of about 8 feet is also required. As such, the Commission granted authorization to acquire various property interests with the adoption of Resolution of Necessity No. 14-017 on May 14, 2014, after which legal counsel initiated action to acquire the property interests by filing an eminent domain lawsuit in Riverside Superior Court on May 22, 2014. It is now necessary to acquire a permanent fire service connection easement on this property. The land area affected by the fire service connection easement is 300 square feet. This easement is necessary since the fire suppression facilities are being relocated to accommodate the project. An offer of just compensation for the additional easement interest was made to the record owners on October 17, 2014. Accordingly, staff seeks to amend Resolution of Necessity No. 14-017, which was adopted on May 14, 2014, to acquire the needed additional interest in the subject property, including any improvements located thereon, for the purpose of a permanent fire service connection easement interest . Agenda Item 6 7 Legal definition{s), legal description{s) and/or plat map(s) of the portion sought to be acquired are attached as an exhibit to Resolution of Necessity 14-017. An aerial view of the parcel and the parcel's relationship to the SR-91 CIP is also attached. The Notice of Hearing to the property owner was mailed on November 21, 2014. Finding 4: Offers of Just Compensation Have Been Made to the Property Owners Litigation guarantees were obtained from Commonwealth Land Title Insurance Company to confirm and identify the parties with an interest in the parcels affected by the SR-91 CIP. The Commission then served the affected property owners and other interested parties as appropriate, with a notice of the Commission's decision to appraise the property. The Commission had the real property interests appraised by the real estate appraisal firms of lntegra Realty Resources-Los Angeles and Kiley Company to establish the Fair Market Value of the property interests the Commission is seeking to acquire from the parties identified herein, and Desmond, Marcello & Amster, LLC and Hodges Lacey & Associates, LLC to value the fixtures and equipment. Offers of just compensation were made to the property owners to purchase the property interests, based on the approved appraisals, as required by Section 7267.2 of the California Government Code. However, the Commission will acquire the interests necessary and set forth above from the property owners to ensure the property will be available to meet the time frames associated with the construction of the SR-91 CIP. Fiscal Impact There is no fiscal impact due to adoption of the resolution of necessity. All property acquisition expenses are included in the SR-91 CIP budget. Attachments: 1) Resolution 13-060 2) Resolution 14-002 3) Resolution 14-017 Agenda Item 6 8 • • • • • • ATTACHMENT 1 AMENDED RESOLUTION NO. 13-060 RESOLUTION OF NECESSITY FOR THE ACQUISITION OF A PERMANENT FIRE SERVICE CONNECTION EASEMENT INTEREST IN A PORTION OF CERTAIN REAL PROPERTY, BY EMINENT DOMAIN, MORE PARTICULARLY DESCRIBED AS ASSESSOR PARCEL NO. 118-330-017, LOCATED IN CORONA, RIVERSIDE COUNTY, CALIFORNIA, FOR THE STATE ROUTE 91 CORRIDOR IMPROVEMENT PROJECT, BETWEEN PIERCE STREET ON THE EAST TO THE COUNTY LINE ON THE WEST, IN RIVERSIDE COUNTY, CALIFORNIA WHEREAS, the Riverside County Transportation Commission (the "Commission") proposes to acquire a permanent fire service connection easement interest in a portion of property identified as Assessor Parcel No. 118-330-017 (CPN 22176-9) for the SR-91 Corridor Improvement Project in Riverside County, California, pursuant to the authority granted to it by section 130220.5 of the California Public Utilities Code; and WHEREAS, pursuant to section 1245.235 of the California Code of Civil Procedure, the Commission scheduled a public hearing for Wednesday, December 10, 2014 at 9:30 a.m., at the County Administration Building, Board of Supervisors Chambers, at 4080 Lemon Street, Riverside, California, and gave to each person whose property is to be acquired and whose name and address appeared on the last equalized county assessment roll, notice and a reasonable opportunity to appear at said hearing and be heard on the matters referred to in section 1240.030 of the California Code of Civil Procedure; and WHEREAS, said hearing has been held by the Commission, and the affected property owner was afforded an opportunity to be heard on said matters; and WHEREAS, the Commission may now adopt a Resolution of Necessity pursuant to section 1240.040 of the California Code of Civil Procedure; NOW, THEREFORE, THE COMMISSION DOES HEREBY RESOLVE AND DECLARE AS FOLLOWS: Section 1. Compliance with California Code of Civil Procedure. There has been compliance by the Commission with the requirements of section 1245.235 of the California Code of Civil Procedure regarding notice and hearing. Section 2. Public Use. The public use for permanent and perpetual fire service connection easement interest in the property to be acquired is for the SR-91 Corridor Improvement Project in Riverside County, California. Section 130220.5 of the California Public Utilities Code authorizes the Commission to acquire, by eminent domain, property necessary for such purposes. Section 3. Description of Property. Attached and marked as Exhibit "A" are the legal definitions, description and map of the interest to be acquired by the Commission that describe the general location and extent of the property with sufficient detail for reasonable identification . 9 Section 4. Findings. The Commission hereby finds and determines each of the following: (a) The public interest and necessity require the proposed project; ( b) The proposed project is planned or located in the manner that will be most compatible with the greatest public good and least private injury; ( c) The property defined, described and/or depicted in Exhibit "A" is necessary for the proposed project; and ( d) The offer required by section 7267.2 of the California Government Code was made. Section 5. Use Not Unreasonably Interfering with Existing Public Use. Some or all of the real property affected by the interest to be acquired is subject to easements and rights of way appropriated to existing public uses. The legal descriptions of these easements and rights of way are on file with the Commission and describe the general location and extent of the easements and rights of way with sufficient detail for reasonable identification. In the event the herein described use or uses will not unreasonably interfere with or impair the continuance of the public use as it now exists or may reasonably be expected to exist in the future, counsel for the Commission is authorized to acquire the herein described interest subject to such existing public use pursuant to section 1240.510 of the California Code of Civil Procedure. Section 6. More Necessary Public Use. Some or all of the real property affected by the interest to be acquired is subject to easements and rights of way appropriated to existing public uses. To the extent that the herein described use or uses will unreasonably interfere with or impair the continuance of the public use as it now exists or may reasonably be expected to exist in the future, the Commission finds and determines that the herein described use or uses are more necessary than said existing public use. Counsel for the Commission is authorized to acquire the herein described real property appropriated to such existing public uses pursuant to section 1240.610 of the California Code of Civil Procedure. Staff is further authorized to make such improvements to the affected real property that it determines are reasonably necessary to mitigate any adverse impact upon the existing public use. Section 7. Further Activities. Counsel for the Commission is hereby authorized to acquire the hereinabove described real property in the name of and on behalf of the Commission by eminent domain, and counsel is authorized to institute and prosecute such legal proceedings as may be required in connection therewith. Legal counsel is further authorized to take such steps as may be authorized and required by law, and to make such security deposits as may be required by order of court, to permit the Commission to take possession of and use said real property at the earliest • • possible time. Counsel is further authorized to correct any errors or to make or agree to non-• material changes in the legal description of the real property that are deemed necessary for the 10 • • • conduct of the condemnation action, or other proceedings or transactions required to acquire the subject real property. Counsel is further authorized to reduce or modify the extent of the interests or property to be acquired so as to reduce the compensation payable in the action where such change would not substantially impair the construction and operation for the project for which the real property is being acquired. Section 8. Effective Date. This Resolution shall take effect upon adoption. APPROVED AND ADOPTED this 10th day of December 2014. ATTEST: Jennifer Harmon, Clerk of the Board Riverside County Transportation Commission Marion Ashley, Chair Riverside County Transportation Commission 11 • • • 12 • 2 3 4 5 6 7 8 9 10 l.l 12 13 14 • 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 • PSOMAS Caltrans Parcel No. 22176-9 EXHIBIT 'Il' LEGAL DESCRIPTION Fire S~rvice Connection Easement APN 118-330-017 In 1he City of Corona, County of Riverside, State of California, being a portion of Parcel 2 as shown on that certain Parcel Map filed in Book 40, Pages 65 and 66 of Parcel Maps, Records of Riverside County, California, described as follows: Beginning at the southwesterly corner of said Parcel 2; thence along the westerly line of said Parcel 2, North 07°58'36" East 30.12 feet to the beginning of a non-tangent curve, concave southerly, having a radius of 5,172.00 feet, a radial line to said begimtlng bears North 05°40' 10" West~ thence leaving said westerly line, easterly 94.12 feet along said curve through a central angle of 1°02'33" to the True Point of Beginning a radial line to said True Point of Beginning bears North 4°37'37"West; thence continuing along said curve 13.88 feet through a central angle of0°09'14 11 ; thence North 85°31'37" East 6.12 feet; thence North 4°30'58" West 15.00 feet; thence South 85°29'02" West 20.00 feet; thence South 4°30'58" East 15.00 feet to the True Point of Beginning. Containing 300 square feet. See Exhibit '12' attached hereto and made apart hereof. The distances described herein are grid distances and are based on California Coordinate System of 1983, Zone 6, 2007.00 epoch. Ground distances may be obtained by dividing grid distances by the mean combination factor of the courses being described. The mean combination factor for this conversion is 0.99997476. M:l2PTG010501 \SUR VEY\LEGALS\22176_APN _ l 18-330-0 l 7\Legal\22176-9.docx 7128/2014 EXHJ.f31T A, PAGE 2 Page 1 of2 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 PSOMAS Prepared under the direction of '-Anna M. Beal, PLS 495 5 Date M:\2PTG0!0501\SURVEY\LEGALS\22l76APN_1l8-330-0l7\Legal\2:2176-9.docx 7i28/2014 EXH!fllT A, PAGE 3 • • • Page 2 of2 • • • EXHIBIT I2 PARCEL# TITLE GRAN TOR AREA APN 22176-9 FSCE El-CORONA, LLC 300 SF 118-330-01 7 CURVE TABLE UNE TABLE C1-fl=4 6 18'41'' R~5153.00' L=387.75' L1-N85°31'37"E 6.12' C2-6.=1°02'33" R=5172.00' L= 94 .12' L2-NOL1° 30'58"W 15.00' C3-.:'.l=0°09'14" R=5172.00' L= 13.88' L3-S85°29'02"W 20.00' C4-t.=1°11 '47" R=5172.00' L=108.00' L4-S04°3?,; '58"E 15.00,.....' __ _ I -··---··-·--!(1~-330-Q.Qi] [118-3:30-00!]1 f RADlA~-~BL_E_ .., ------·· ---5.8Lofiltznl_ ·-· .. L_ ··--. l R1 1 ._I N05° 38 '03"W ( I " 379.97' I Rz' ·-· Nos 0 40'1 o"w 1 r· --·--· -~ ·---'-· ---· ----·· ··· -- I I ' 0 ' II I I I R31 1-, N01 19 22 w : rioc NO 2005-0979333 0. R. "" IR4 -N02°38'34"W-!!..!! • • I ~ i RS, ;-1 N04°37'37"W ~ / I --------,--------1 I. 111 ! ~ J I I I 111 i ~ ! PARC.EL MJ\P l !.· 1,' I I / ,..., I -·-~·1 I ii~ 18-330-oogj I PCL P; M. EL 40 bo;~~ 3 I I 11 ! I I I' .. ~ _r I PCL J rl ~ i 'I I . I Ii Ii a'.) .. , i I I I:"",.....·'-+-.....,,,__ ' I! I 'j !o H1 --HE I I I I i I J-- 22176-9 TPOB 0 t-- 0 Vl ... \ (R) POB TPOB lndicates Rodia! 9eoring Point of Beginning -C2c:f/ _e,4 22176-9 c==i ..LLLLJ. True Point of Beginning Title to State Access Prohibited NOTES Coord1notes end oeor.ngs ore on CCS. 1983(2007.00} Zone 6. Distances and stationing are grid cistonces. Divide by 0.99997476 to obtain ground distances. Al I d!stonces are in feet unless otherwise noted. F£ET O DETAIL "A" NOT TO SCALE 22176-9 F!RE. SERVICE: CONNECTION EASEMENT 50 too 200 PREPARED BY: DATE: 07-29-2014 REV.: EA: OF540 FA#: PCL 4 300 PSOMAS DISTRICT COUNTY ROUTE SHEET PM SHEET NO.TOTAL SHEETS 8 RIV 91 5. 1 EXHi~T A, PAGE 4 • • • 16 • • • Legal Definitions of Property to be Acquired The following is a list of definitions of legal rights to be acquired by Riverside County Transportation Commission: (The rights being acquired may be exercised mutually exclusive of each other.) "Fire Service Connection Easement" refers to a permanent and perpetual non- exclusive easement in favor of RCTC, its successors and assigns, over, upon, under, and across the lands hereinafter described together with the right to access, maintain, improve, alter, inspect, replace, and use for the replacement, repair, operation, and maintenance of fire service connections/backflow detectors as determined necessary by RCTC, together with all necessary rights incidental thereto in connection with the exercise of the easement rights described herein. Property Owner shall not erect or construct, or permit to be erected or constructed, any building, structure or improvement on, over, or under any portion of the easement, or plant trees or any other vegetation on any portion of the easement except with the prior written consent of RCTC, its successors and assigns, which consent shall not be unreasonably withheld. RCTC shall have the right to trim, cut or clear away any trees, bmsh, or other vegetation from time to time as detennined in its sole discretion, without payment of additional compensation. No other easements shall be granted on, under or over the easement without the prior written consent ofRCTC, its successors and assigns. The ground elevations of the easement upon completion of construction shall not be further increased or decreased without the prior written consent of RCTC, its successors and assigns. Property Owner shall not cause, directly, indirectly or negligently, any interference with or harm to the rights conveyed hereunder . EXH.1.Et!T A, PAGE 1 • • • 18 • • • u ...I " ...I ..... .... o RS I cO oM a.. M 0 I u C1J I ..-1 .......... w 0 0 (V") 1-z w ~ w (f) i'.5 z 0 6 w z z 8 ,__. LL • • • • • • ATTACHMENT 2 AMENDED RESOLUTION NO. 14-002 RESOLUTION OF NECESSITY FOR THE ACQUISITION OF PERMANENT FIRE SERVICE CONNECTION EASEMENT, BUILDING ACCESS EASEMENT, TEMPORARY CONSTRUCTION EASEMENT, TEMPORARY ACCESS EASEMENT, BUILDING DEMOLITION EASEMENT, AND TEMPORARY EROSION CONTROL EASEMENT INTERESTS IN A PORTIONS OF CERTAIN REAL PROPERTY, BY EMINENT DOMAIN, MORE PARTICULARLY DESCRIBED AS ASSESSOR PARCEL NO. 118-160-071, LOCATED IN CORONA, RIVERSIDE COUNTY, CALIFORNIA, FOR THE STATE ROUTE 91 CORRIDOR IMPROVEMENT PROJECT, BETWEEN PIERCE STREET ON THE EAST TO THE COUNTY LINE ON THE WEST, IN RIVERSIDE COUNTY, CALIFORNIA WHEREAS, the Riverside County Transportation Commission (the "Commission") proposes to acquire permanent fire service connection easement, building access easement, temporary construction easement, temporary access easement, building demolition easement, and temporary erosion control easement interests in a portion of property identified as Assessor Parcel No. 118-160-071 (CPNs 22178-6, 22178-7, 22178-8, 22178-9, 22178-10 and 22178-11) for the SR-91 Corridor Improvement Project in Riverside County, California, pursuant to the authority granted to it by section 130220.5 ofthe California Public Utilities Code; and WHEREAS, pursuant to section 1245.235 of the California Code of Civil Procedure, the Commission scheduled a public hearing for Wednesday, December 10, 2014 at 9:30 a.m., at the County Administration Building, Board of Supervisors Chambers, at 4080 Lemon Street, Riverside, California, and gave to each person whose property is to be acquired and whose name and address appeared on the last equalized county assessment roll, notice and a reasonable opportunity to appear at said hearing and be heard on the matters referred to in section 1240.030 of the California Code of Civil Procedure; and WHEREAS, said hearing has been held by the Commission, and the affected property owner was afforded an opportunity to be heard on said matters; and WHEREAS, the Commission may now adopt a Resolution of Necessity pursuant to section 1240.040 of the California Code of Civil Procedure; NOW, THEREFORE, THE COMMISSION DOES HEREBY RESOLVE AND DECLARE AS FOLLOWS: Section 1. Compliance with California Code of Civil Procedure. There has been compliance by the Commission with the requirements of section 1245.235 of the California Code of Civil Procedure regarding notice and hearing. Section 2. Public Use. The public use for permanent fire service connection easement, building access easement, temporary construction easement, temporary access easement, building demolition easement, and temporary erosion control easement interests in portions of the property to 20 be acquired is for the SR-91 Corridor Improvement Project in Riverside County, California. Section 130220.5 of the California Public Utilities Code authorizes the Commission to acquire, by eminent domain, property necessary for such purposes. Section 3. Description of Property. Attached and marked as Exhibit "A" are the legal definitions, descriptions and maps of the interests to be acquired by the Commission that describe the general location and extent of the property with sufficient detail for reasonable identification. Section 4. Findings. The Commission hereby finds and determines each of the following: (a) The public interest and necessity require the proposed project; ( b) The proposed project is planned or located in the manner that will be most compatible with the greatest public good and least private injury; ( c) The property defined, described and/or depicted in Exhibit "A" is necessary for the proposed project; and (d) The offer required by section 7267.2 of the California Government Code was made. Section 5. Use Not Unreasonably Interfering with Existing Public Use. Some or all of the real property affected by the interest to be acquired is subject to easements and rights of way appropriated to existing public uses. The legal descriptions of these easements and rights of way are on file with the Commission and describe the general location and extent of the easements and rights of way with sufficient detail for reasonable identification. In the event the herein described use or uses will not unreasonably interfere with or impair the continuance of the public use as it now exists or may reasonably be expected to exist in the future, counsel for the Commission is authorized to acquire the herein described interest subject to such existing public use pursuant to section 1240.510 of the California Code of Civil Procedure. • • Section 6. More Necessary Public Use. Some or all of the real property affected by the interest to be acquired is subject to easements and rights of way appropriated to existing public uses. To the extent that the herein described use or uses will unreasonably interfere with or impair the continuance of the public use as it now exists or may reasonably be expected to exist in the future, the Commission finds and determines that the herein described use or uses are more necessary than said existing public use. Counsel for the Commission is authorized to acquire the herein described real property appropriated to such existing public uses pursuant to section 1240.610 of the California Code of Civil Procedure. Staff is further authorized to make such improvements to the affected real property that it determines are reasonably necessary to mitigate any adverse impact upon the existing public use. • 21 • • • Section 7. Further Activities. Counsel for the Commission is hereby authorized to acquire the hereinabove described real property in the name of and on behalf of the Commission by eminent domain, and counsel is authorized to institute and prosecute such legal proceedings as may be required in connection therewith. Legal counsel is further authorized to take such steps as may be authorized and required by law, and to make such security deposits as may be required by order of court, to permit the Commission to take possession of and use said real property at the earliest possible time. Counsel is further authorized to correct any errors or to make or agree to non- material changes in the legal description of the real property that are deemed necessary for the conduct of the condemnation action, or other proceedings or transactions required to acquire the subject real property. Counsel is further authorized to reduce or modify the extent of the interests or property to be acquired so as to reduce the compensation payable in the action where such change would not substantially impair the construction and operation for the project for which the real property is being acquired. Section 8. Effective Date. This Resolution shall take effect upon adoption. APPROVED AND ADOPTED this 10th day of December 2014. ATIEST: Jennifer Harmon, Clerk of the Board Riverside County Transportation Commission Marion Ashley, Chair Riverside County Transportation Commission 22 • • • 23 • • • Legal Definitions of Property to be Acquired The following is a list of definitions of legal rights to be acquired by Riverside County Transportation Commission: "Fire Service Connection Easement" (as to 22178-6) refers to a permanent and perpetual non-exclusive easement in favor of RCTC, its successors and assigns, over, upon, under, and across the lands hereinafter described together with the right to access, maintain, improve, alter, inspect, replace, and use for the replacement, repair, operation, and maintenance of fire service connections/backflow detectors as determined necessary by RCTC, together with all necessary rights incidental thereto in connection with the exercise of the easement rights described herein. Property Owner shall not erect or construct, or permit to be erected or constructed, any building, structure or improvement on, over, or under any portion of the easement, or plant trees or any other vegetation on any portion of the easement except with the prior written consent of RCTC, its successors and assigns, which consent shall not be unreasonably withheld. RCTC shall have the right to trim, cut or clear away any trees, brush, or other vegetation from time to time as determined in its sole discretion, without payment of additional compensation . No other easements shall be granted on, under or over the easement without the prior written consent ofRCTC, its successors and assigns. The ground elevations of the easement upon completion of construction shall not be further increased or decreased without the prior written consent of RCTC, its successors and assigns. Property Owner shall not cause, directly, indirectly or negligently, any interference with or harm to the rights conveyed hereunder. "Building Access Easement" (as to 22178-7) refers to a non-exclusive easement and right of way in favor of RCTC, its successors and assigns, together with the right to construct, reconstruct, repair, extend, maintain and traverse an access way to access RCTC owned facilities and/or construction site, as determined necessary by RCTC, together with all necessary rights incidental thereto, on, over, under and across the property in connection with the exercise of any easement rights described herein. Property Owner shall not erect or construct, or permit to be erected or constructed, any building, structure or improvement on, over, or under any portion of the easement, or plant trees or any other vegetation on any portion of the easement except with the prior written consent of RCTC, its successors and assigns . 17336 02100\9393575.1 Exhibit ~~Page 1 RCTC shall have the right to trim, cut or clear away any trees, brush, or other vegetation from time to time as determined in its sole discretion, without payment of additional compensation. No other easements shall be granted on, under or over the easement without the prior written consent ofRCTC, its successors and assigns. The existing ground elevations upon completion of construction shall not be further increased or decreased without the prior written consent ofRCTC. Property Owner shall not cause, directly, indirectly or negligently, any interference with or harm to the rights conveyed hereunder. Such right shall be exercised for a period of 9 months, beginning no fewer than 72 hours after the date that RCTC provides written notice of commencement of possession to the property owner. "Temporary Construction Easement (TCE)" (as to 22178-8) refers to the right of RCTC, its successors and assigns, to engage in construction and related activities for the project, together with all necessary rights of ingress and egress to the easement area in connection with the exercise of any of the easement rights. Such right shall be exercised for a period of 12 months, beginning no fewer than 72 hours after the date that RCTC provides written notice of commencement of possession to the property owner. The duration of the rights under this easement shall not extend beyond November 6, 2017, or upon filing of a Notice of Completion, whichever is earlier. Property Owner shall not cause, directly, indirectly or negligently, any interference with or harm to the rights conveyed hereunder. "Temporary Access Easement" (as to 22178-9) refers to a temporary non-exclusive easement and right of way in favor of RCTC, its successors and assigns, to traverse and maintain an access way to access RCTC facilities and/or construction site, as determined necessary by RCTC, together with all necessary rights incidental thereto, on, over, under and across the property in connection with the exercise of any easement rights described herein. Property Owner shall not erect or construct, or permit to be erected or constructed, any building, structure or improvement on, over, or under any portion of the easement, or plant trees or any other vegetation on any portion of the easement, except with the prior written consent of RCTC, its successors and assigns. RCTC shall have the right to trim, cut or clear away any trees, brush, or other vegetation 17336.02100\9393575. l Exhibit~~ Page 2 -----------, • • • • • • from time to time as determined m its sole discretion, without payment of additional compensation. No other easement shall be granted on, under or over the easement without the prior written consent ofRCTC, its successors and assigns. Such rights shall be exercised for a period of twelve (12) consecutive months, beginning no fewer than 72 hours after the date that RCTC provides written notice of commencement of possession to the property owner. The duration of the rights under this easement shall not extend beyond November 6, 2017, or upon filing of a Notice of Completion, whichever is earlier. Property Owner shall not cause, directly, indirectly or negligently, any interference with or harm to the rights conveyed hereunder. "Building Demolition Easement" (as to 22178-10) refers to an exclusive easement and right of way in favor of RCTC, its successors and assigns, together with the right to construct, reconstruct, repair, extend, maintain and traverse an access way to access RCTC owned facilities and/or construction site, as determined necessary by RCTC, together with all necessary rights incidental thereto, on, over, under and across the property in connection with the exercise of any easement rights described herein. Property Owner shall not erect or construct, or permit to be erected or constructed, any building, structure or improvement on, over, or under any portion of the easement, or plant trees or any other vegetation on any portion of the easement except with the prior written consent of RCTC, its successors and assigns. RCTC shall have the right to trim, cut or clear away any trees, brush, or other vegetation from time to time as determined in its sole discretion, without payment of additional compensation. No other easements shall be granted on, under or over the easement without the prior written consent ofRCTC, its successors and assigns. The existing ground elevations upon completion of construction shall not be further increased or decreased without the prior written consent of RCTC. Property Owner shall not cause, directly, indirectly or negligently, any interference with or harm to the rights conveyed hereunder. Such right shall be exercised for a period of 9 months, beginning no fewer than 72 hours after the date that RCTC provides written notice of commencement of possession to the property owner. 17336.02100\9393575.1 Exhibit ~~Page 3 "Temporary Erosion Control Easement" (as to 22178-11) refers to an exclusive temporary easement and right of way in favor of RCTC, its successors and assigns, together with the right to plant and maintain grass, plants and trees and to place rock riprap or other erosion control improvements for the protection and beautification of same, as determined necessary by RCTC, together with all necessary rights incidental thereto, on, over, under and across the property in connection with the exercise of any easement rights described herein. Property Owner shall not erect or construct, or permit to be erected or constructed, any building, structure or improvement on, over, or under any portion of the easement, or plant trees or any other vegetation on any portion of the easement except with the prior written consent of RCTC, its successors and assigns. RCTC shall have the right to trim, cut or clear away any trees, brush, or other vegetation from time to time as determined in its sole discretion, without payment of additional compensation. No other easements shall be granted on, under or over the easement without the prior written consent of RCTC, its successors and assigns. The ground elevations of the easement upon completion of construction shall not be further increased or decreased without the prior written consent of RCTC. • Property Owner shall not cause, directly, indirectly or negligently, any interference with • or harm to the rights conveyed hereunder. • 17336.02100\9393575.1 Exhibit ~?Page 4 PSOMAS Caltrans Parcel No. 22178-6 EXHIBIT 'Fl' LEGAL DESCRIPTION Fire Service Connection Easement APN 118-160-071 In the City of Corona, County of Riverside, State of California, being a portion of Parcel 1 of Parcel Map No. 23870 as per map filed in Book 156, Pages 48 and 49 of Parcel Maps, Records of Riverside County, California, described as follows: Beginning at the most westerly southwesterly comer of said Parcel 1; thence along the westerly line of said Parcel, North 07°57'35" East 34.52 feet; thence leaving said westerly line, South 40°08'25" East 22.54 feet to the beginning of a non-tangent curve, concave to the south, having a radius of 5,034.00 feet and to which beginning a radial line bears North 01°13'43" East; thence easterly 110.33 feet along said curve through a central angle of 01°15'21 ";thence South 87°30'56" East 12.60 feet to the True Point of Beginning; thence South 87°30'56" East 20.00 feet; thence North 3°57'30" East 15.00 feet; thence North 87°30'56" West 20.00 feet; thence South 3°57'30" West 15.00 feet to the True Point of Beginning. Containing 300 square feet. The distances described herein are grid distances and are based on California Coordinate System of 1983, Zone 6, 2007.00 epoch. Ground distances may be obtained by dividing grid distances by the mean combination factor of the courses being described. The mean combination factor for this conversion is 0.99997476. See Exhibit 'F2' attached hereto and made apart hereof. M:\2PTGO 10501 \SURVEY\LEGALS\22178_APN_118-160-071 \Legal\22178-6.docx 7/29/2014 Exhibit ~~Page 5 Page 1 of2 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 PSOMAS Prepared under the direction of AnnaVsea1,. PLS 4955 Date M:\2PTGO l 0501 \SUR VEY\LEGALS\22178_ APN_ 118-160-071 \Legal\22178-6.docx 7/29/2014 Exhibit~~ Page 6 • • • Page 2 of2 • • • EXHIBIT F2 PARCEL# TITLE GRAN TOR AREA APN 22178-6 FSCE Z CORONA PROPERTIES, LLC 300 SF 118-160-071 LINE TABLE LINE TABLE RADIAL TABLE R1 -N02°32'27"E R2 -N01°13'43"E CURVE TABLE C1-l:.=01°15'21" L 1 -N39°45'26"W L2 -N83°56'15"W L3 -S08°01 '54"W L4 -S87° 30'56"E 33.98' 105.66' 61 .07' 12.60' LS - L6 - L7 - L8 S87° 30'56"E N03°57'30"E N87° 30'56"W so3°s1'3o"w 20.00' 15.00' 20.00 1 1 5.00' (\j () I () IV) IV) I co R=5034.00' L=110.33' LL.] ::J ' < r-- LL.] n ·<O :::::::,. 0 ,L) -::::( n J lf) 68' ,L) < -;;::j "'-a -::::( ,, ~ w -1 = (J 0::: L() n IL. LL.] rn r--::r:: L() 2 V) IL. 9 8 LEGEND 'T L() N N w L() N ' co 0 0 0 p, JVL NO, 20938 ~----~ 1118-760-085\ PCL J3 P,JYLB, J3b/98-JOJ 1178-160-053\ PCL 15 PCL j L} N81°58'33"W 447.15' PCL P J JVL NOJ 23870 p,JVLBJ j 5b/L}8-L}9 DOC, NO, 200L}- OJ3bOL}2> 0,RJ EXISTING FRONTAGE 22178-6 RO. R/W POMONA ROAD EXISTING FREEWAY R/W Cf> 0 ROUTE 91 RIVERSIDE FREEWAY C/L STATIONING 2 3 270 RIVERSIDE FREEWAY ROUTE 91 (R) POB Indicates Radial Bearing Point of Beginning c:=J Title to State I I I I I Access Prohibited NOTES 22178-6 1118-760-0551 PCL 7 ' p, JVL n 0 NO, 20938 Cf> 0 PCL 8 n Ii 1s-160-056 \ w 'T P,JVLB, L() 0 l3b/98-JOJ 0 1118-J 60-057 \ CD 0 z PCL 9 4 275 Coordinates and bearings are on CCS 1983(2007.00) Zone 6. Distances and stationing are grid distances. Divide by 0.99997476 to obtain gr:-ound distances. Al I distances ore in feet unless otherwise noted. FIRE SERVICE CONNECTION EASEMENT PREPARED BY: PSOMAS 3 Hutton Centr-e Or-ive, Ste. 200 Santa Ana, Co! ifornio 92707 (714)751-7373/(714)545-8883 (Fax) FEET 0 DATE: 07-29-14 I 50 REV. : DISTRICT COUNTY ROUTE 8 100 200 EA: OF 540 FA#: SHEET PM SHEET NO. TOT AL SHEETS 5.2 • • • 31 • • • Map Check Report Project: 2PTG010A01MSM Alignment: 22178J'/t, Description: 20170728MM Type Point Name\ Direction Length --------------------------------- POB s 87°30'56" E PI N 3°57'30" E PI N 87°30'56" w PI ) s 3°57'30" w POE Northing Error: 0.00 ft Easting Error: 0.00 ft Closing Direction: N 0"00'00" E Closing Distance: 0.00 ft Closed Area: 300 sq ft (0 ac) Perimeter: 70.01 ft Precision: le+. 40 20.00 15.00 20.00 15.00 Northing Easting ----------------------------- 2267489.46 6155734.13 2267488.59 6155754.12 2267503.56 6155755.15 2267504.42 6155735.17 2267489.46 6155734.13 file:// IC :JU sers/marcelino .miller/ AppData/L~bfM:p/~~~~adsReport. txt Page 1 of 1 Elevation ---------- 0.00 0.00 0.00 0.00 0.00 7/29/2014 • i • • 33 • • • 2 3 PSOMAS EXHIBIT 'Gl' LEGAL DESCRIPTION 4 Caltrans Parcel No. 22178-7 5 Building Access Easement 6 I APN 118-160-071 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 In the City of Corona, County of Riverside, State of California, being a portion of Parcel 1 1 of Parcel Map No. 23870 as per map filed in Book 156, Pages 48 and 49 of Parcel 1 1 Maps, Records of Riverside County, California, described as follows: !I Beginning at the most westerly corner of said Parcel 1; thence North 07°57'35" East 112.13 feet along a portion of the westerly line of said parcel to a point thereon; thence South 81°52'20" East 56.55 feet to the True Point of Beginning; thence North 08°11 '52" .I East 62.64 feet; thence North 07°44'14" East 62.96 feet; thence North 07°16'39" East II 47.88 feet; thence South 81°42'46" East 100.94 feet; thence South 08°07'40" West 153.69 feet; thence North 81°52'20" West 11.49 feet; thence South 07°1 l '43" West 29.50 feet; thence North 81°52'20" West 88.86 feet; thence North 08°04'48" East 10.00 feet to the True Point of Beginning. Containing 18,018 square feet 22 ' 23 24 25 26 27 28 29 30 31 1 See Exhibit 'G2' attached hereto and made a part hereof. The distances described herein are grid distances and are based on California Coordinate System of 1983, Zone 6, 2007.00 epoch. Ground distances may be obtained by dividing grid distances by the mean combination factor of the courses being described. The mean combination factor for this conversion is 0.999974 76. P:\2PTGO 10501 \SURVEY\LEGALS\22178_APN _J J 8-160·07 l \Legals\22178-7-BAE.doc 9/1812014 Exhibit l; Page 9 Page I of2 PSOMAS 2 Prepared under the direction of 3 4 5 6 Brian E. Bullock, PLS 5260 Date 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 P;\2PTGO l0501\SURVEY\LEGALS\22 I 78_APN _118-160-071\Legals\22178-7-BAE.doc 9/18/2014 Exhibit ),5Page 10 • • Page 2 of2 • • EXHIBIT G2 PARCEL# TITLE AREA APN 22178-7 LINE TABLE L1 -N39°45'26"W 33.98' L2 -N07°57'35"E 112.13' L3 S81°52'20"E 56.55' L4 -N08°11 '52"E 62.64' L5 -N07° 44 '14"E 62.96' PCL BAE 1 8,01 8 LINE TABLE L6 -N07°16 '39"E L7 -S81°42'46"E LB -NB1°s2·2o"w SF 47.88' 100. 94' 11 .49' 11 8-160-071 LINE TABLE L9 -S07°11'43"W L10 -N81°52'20"W L11 -N08°04'48"E L12 -N83°56'15"W 1118-160-0851 1118-160-0531 PCL JS ]3 I I PCL J L} 447.15' PCL J P.M. 23870 P.M.B. JSb/48-49 DOD. NO. 2004-0J3b042 D.R. I~ r--------, I I I I I I I I ____ __:_J__ I I _l ___ j \ r- 1" -1 Ll n.. I"') 0 en ro 0 -1 I"') Ll n.. 3::: -v l() G" 1 o-r B POMONA ROAD 0 EXISTING R/W ROUTE 91 RIVERSIDE FREEWAY (R) POB TPOB B ~ .LLLLl 9 270 LEGEND Indicates Radial Bearing Point of Beginning True Point of Beginning Title to State Access Prohibited NOTES Coordinates and bearings are an CCS 1983(2007 .00) Zone 6. Distances and stationing are grid distances. Divide by 0.99997476 to obtain ground distances. Al I distances ore in feet unless otherwise noted. 2 3 CURVE TABLE Cl -ll=3° 31 '1 7" R=5, 153.00' L=316. 71' RADIAL TABLE R1 -N02°32'27"E 22178-7 BUILDJNG ACCESS EASEMENT FEET O 50 100 200 4 300 DATE: 9-18-14 REV.: EA: OF540 FA#: 29.50' 88.86' 10.00' 105.66' I() I() a I 0 l..O I a co I co DISTRICT COUNTY ROUTE SHEET PM SHEET NO. TOTAL SHEETS 8 RIV 91 5.2 Exhibit , Page 11 • • • 37 • PSOMAS • • EXHIBIT 'Hl' 2 LEGAL DESCRIPTION 3 ' 4 Caltrans Parcel No. 22178-8 5 Temporary Construction Easement 6 APN 118-160-071 7 8 9 10 II 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 ( In the City of Corona, County of Riverside, State of California, being a portion of Parcel l of Parcel Map No. 23870 as per map filed in Book 156, Pages 48 and 49 of Parcel Maps, Records of Riverside County, California, described as follows: Beginning at the most westerly comer of said Parcel 1; thence North 07°57'35" East 34.52 feet along a portion of the westerly line of said parcel to a point thereon, said point being the True Point of Beginning; thence North 07°57'35" East 77.60 feet; thence South 81°52'20" East 56.55 feet; thence South 08°04'48" West 10.00 feet; thence South 81°52'20" East 5.15 feet; thence South 08°07'40" West 25.65 feet; thence South 81°52'20" East 84.12 feet; thence South 07°11 '43" West 16.38 feet; thence South 81°52'20" East 48.63 feet; thence North 08°07'40" East 71.53 feet; thence South 81°52'20" East 137.84 feet; thence South 08°05'41" West 53.41 feet; thence North 81°58'34" West 26.06 feet; thence South 02°29'04" West 28.68 feet; thence North 87°30'56" West 183.54 feet to the beginning of a curve concave southerly having a radius of 5034.00 feet; thence westerly along said curve 110.33 feet through a central angle of 01°15'21 ";thence North 40°08'25" West 22.54 feet to the True Point of Beginning. Containing 21,820 square feet. See Exhibit 'H2' attached hereto and made a part hereof. I The distances described herein are grid distances and are based on California Coordinate System of 1983, Zone 6, 2007.00 epoch. Ground distances may be obtained by dividing l P.12PTG010501\SURVEY\LEGALSl22178 .APN. l 18-160-071\Lcgals\22178-8-TCEdoc 911812014 -Page I of2 Exhibit l,8page 12 PSOMAS grid distances by the mean combination factor of the courses being described. The mean 2 combination factor for this conversion is 0.99997476. 3 4 5 6 7 Prepared under the direction of 8 9 IO 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 ~~. Brian E. Bullock, PLS 5260 Date P;\2PTGOIOSOJISURVEY\LEGALS\22178_APN_ll8-160-071\Legals\22178-8-TCEOdoc 911812014 Exhibit A.9Page 13 Page 2 of2 l • j ; j • I • • • PARCEL# 22178-8 LINE TABLE L1 -N39° 45'26"W L2 -N07° 5 7'35"E L3 -N07°57'35"E LLJ -581°52'20"E LS -S08°04'48"W llJ ~ ' < I'- Lu I") ,Q :::::,... 0 ,u ";:;( JV") J C\J 'I' lf) 68' a J ,() --'"' "' I ,, 0 < () '"' --";:;( w IV') -1 " tr) 0 ~ I Il... ..,:: 1:0 0.: co llJ --.., :r: '~ 0 Il... 2:: l/) !'-- ' «:o 11.. z Most W' I Cor. r-~I -r-:-M. B. 156/48-4 9 33.98' 3Ll.52' 77.60' 56.55' 10.00' PCL EXHIBIT H2 TITLE AREA TCE 21,820 SF LINE TABLE LG S81°52'20"E L7 -S08°07'40"W LS -581°52'20"E 1178-160-0851 13 I I PCL J L} 5.1 5' 25.65' 84 .1 2' APN 118-160-071 LINE TABLE L9 -S07°11 '43 11 W L10 -581°52'20"E L 11 -N08° 07' 40"E L 12 -S81°52'20"E L 1 3 -508° 05 'Ll 1 "W 1118-760-053, PCL 15 '"' -1 0 S81°58'33"E 447.15' ---------Il... PCL 1 P.NL 23870 P.NLB. J5b/4B-L}9 DOC. NO. 2004-0J3b042 D.R. Lfff 8 POMONA ROAD EXISTING R/W ,~ I I L 12 I 1 r--------, I I I I I I L 13 : I .......--------' r- 0 ' !"') 0 ('() O'l 0 _] I") 0 Il... :s: -v L[) ti' ROUTE 91 RIVERSIDE FREEWAY 2 3 4 9 210 LINE TABLE 16.38' 48.63' 71 .53' 137. 84, 53.41' II) II) 0 I 0 ID I 0 ();) {R) POB TPOB s LEGEND Indicates Radio! Bearing Point of Beginning True Point of Beginning Title to State RADIAL TABLE Rl -N02° 32'27"E R2 -N01°13'43"E CURVE TABLE L14 -N81°58'34"W L15 -S02°29'04"W L16 -N87°30'56"W L17 -N40°08'25"W L18 -N83°56'15"W 26.06' 28.68' 183.5LJ' 22.54' 105.66' c=J ..LLLLJ. Access Prohibited NOTES Coordinates and bearings ore on CCS 1983(2007.00) Zone 6. Distances and stationing are grid distances. Divide by 0.99997476 to obtain ground distances. All distances ore in feet unless otherwise noted. Cl -Ll=03°31 '17" R=5, 153.00' L=316. 71' C2 -Ll=01°15'21" R=5,034.00' L=110.33' 22178-8 TEMPORARY CONSTRUCTION EASEMENT FEET 0 50 100 200 300 DATE: 9-18-14 REV.: EA: OF540 FA#: DISTRICT COUNTY ROUTE SHEET PM SHEET NO. TOTAL SHEETS 8 RIV 91 5.2 . 40 Exhibit A, Page 14 • 2 3 4 5 6 7 8 9 10 11 12 13 14 • 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 • PSOMAS EXHIBIT '11' LEGAL DESCRIPTION Caltrans Parcel No. 22178-9 Temporary Access Easement APN 118-160-071 ' In the City of Corona, County of Riverside, State of California, being a portion of Parcel 1 of Parcel Map No. 23870 as per map filed in Book 156, Pages 48 and 49 of Parcel Maps, Records of Riverside County, California, described as follows: I Beginning at the most westerly comer of said Parcel I; thence North 07°57'3 5" East I ' 112.13 feet along a portion of the westerly line of said parcel to a point thereon; thence South 81 °52'2011 East 36.54 feet to the True Point of Beginning; thence North 07°46'49" ii East 168.31 feet; thence North 81°58'33" West 36.01 feet to a point on said westerly line; thence North 07°57'35" East 30.00 feet along last said line to the northwesterly comer of said parcel; thence South 81°58'33" East 55.92 feet along the northerly line of said parcel to a point thereon; thence South 07°46'49" West 24.88 feet; thence South 07°16'39" West J 47.88 feet; thence South 07°44'14" West 62.96 feet; thence South 08°11'52" West 62.64 ! feet; thence North 81°52'20 11 West 20.01 feet to the True Point of Beginning. Containing 5,099 square feet See Exhibit 'I2' attached hereto and made a part hereof. The distances described herein are grid distances and are based on California Coordinate System of 1983, Zone 6, 2007.00 epoch. Ground distances may be obtained by dividing ~ grid distances by the mean combination factor of the courses being described. II combination factor for this conversion is 0.99997476. The mean Ii II P:\2PTGO l 050l\SURVEY\LEGALS\22178_APN. l l 8-160-07 l\Legals\22178-9-T AE.doc 9/18/2014 Exhibit f,2page 15 Page I of2 PSOMAS 2 3 Prepared under the direction of 4 5 6 7 Brian E. Bullock, PLS 5260 Date 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 Pr\2PTGOJ 0501ISURVEY\LEGALS\22l78_APN_l l 8-160-07 l\Legals\22178-9-T AE.doc 911812014 .. 43 Exh1b1t A, Page 16 • r • Page 2 of2 • • EXHIBIT I2 PARCEL# TITLE AREA APN 22178-9 TAE 5,099 SF 118-160-071 LINE TABLE L1 -N39°45'26"W 33.98' 112.13' 36.54' LINE TABLE L6 -N07°57'35"E L7 -S81°58'33"E LB -S07°46'49"W L2 -N07° 57'35"E L3 -S81°52'20"E L4 -N07°46'49"E 1118-160-0851 L5 -N81°58 '33"W PCL J4 J11 B-160-053 I L6~-?'f\::----,,R:-~~-;:;-:--::-:-=-:-::-:~~~~.L....--.:P~C~~~I _.:.:l~~~~-1.. LL.I _ ~~~0_5_~'33"E 447.15' ~ LB : PCL J LL.I • I P.NL 23870 ~ 0 I ""( ~ : I 68' I I I I 5b/48-L}9 DOC. NO. 2004-0136042 O.R. 1-r--------1 I I I I I I I I . ----~1 ___ J I r- Most W' I Cor. LO-r 8 POMONA.ROAD EXISTING R/W7 t-'OI:.Q.e. 1--- -P:M. 8. 156/48-49 ROUTE 91 9 e LEGEND RIVERSIDE FREEWAY 270 RADIAL TABLE (Rl Indicates Radial Bearing R1 -N02°32'27"E 2 3 LINE TABLE 30.00' 55.92' 24.88' "' _J 0 n... ' !'() 0 ro 0) 0 -1 ,...., 0 n... 4 l() lO 0 I 0 l.O l 0 (X) lO l() 0 I a l.O I (X) 47 .88' 62.96' 62.64' 20.01' POB Point of Beginning TPOB True Point of Beginning L 9 -507°16'39"W L10 -S07°44'14"W L 11 -508°11 '52"W L12 -N81°52'20"W L 13 -N83°56'15"W 105.66' c===J Title to State CURVE TABLE ..LLLLJ. Access Prohibited Cl -l:i.=3°31'17" R=S,153.00' L=316.71' NOTES 22178-9 TEMPORARY ACCESS EASEMENT Coordinates and bearings ore on CCS 1983(2007.00) Zone 6. Distances and stationing ore grid distances. Divide by 0.99997476 to obtain ground distances. Al I distances ore in feet unless otherwise noted. FEET 0 • PREPARED BY: DATE: 9-18-14 PSOMAS 50 REV.: 100 200 300 EA: OF540 FA#: DISTRICT COUNTY ROUTE SHEET PM SHEET NO. TOTAL SHEETS 8 RIV 91 5.2 Exhibit f,4Fiage 17 • • • 45 • 2 3 4 5 6 7 8 9 JO 11 12 13 14 • 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 • PSOMAS EXHIBIT 'Jl' LEGAL DESCRIPTION Caltrans Parcel No. 22178-10 Building Demolition Easement APN 118-160-071 In the City of Corona, County of Riverside, State of California, being a portion of Parcel 1 of Parcel Map No. 23870 as per map filed in Book 156, Pages 48 and 49 of Parcel Maps, Records of Riverside County, California, described as follows: Beginning at the most westerly comer of said Parcel 1; thence North 07°57'35" East 112.13 feet along a portion of the westerly line of said parcel to a point thereon; thence South 81°52'20" East 56.55 feet; thence South 08°04'48" West 10.00 feet; thence South 81°52'20" East 5.15 feet to the True Point of Beginning; thence South 81°52'20" East 83.70 feet; thence North 07°11'43" East 29.50 feet; thence South 81°52'20" East 49.79 feet; thence South 08°07'40" West 71.53 feet; thence North 81°52'20" West 48.63 feet; thence North 07°11 '43" East 16.38 feet; thence North 81°52'20" West 84.12 feet; thence North 08°07'40" East 25.65 feet to the True Point of Beginning. Containing 5,672 square feet See Exhibit 'J2' attached hereto and made a part hereof. The distances described herein are grid distances and are based on California Coordinate System of 1983, Zone 6, 2007.00 epoch. GroW1d distances may be obtained by dividing grid distances by the mean combination factor of the courses being described. The mean combination factor for this conversion is 0.99997476. P:\2PTGO I 0501\SURVEY\LEGALS\22 I 78.._APN J 18-160-071\Legals\22178-l 0-BDE.doc 9118/2014 46 Exhibit A, Page 18 Page I of2 PSOMAS ~ 2 Prepared under the direction of "' .) 4 5 ~~ ~-18-1!4. 6 , Brian E. Bullock, PLS 5260 Date 7 8 9 IO II 12 13 14 l 15 • 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 I P:\2PTGOI0501\SURVEY\LEC 9/1812014 . 47 Exhibit A, Page 19 • • EXHIBIT J2 PAR CE L:f:i: TITLE AREA APN 22178-10 LINE TABLE L 1 -N39°45'26"W L2 -N07°57'35"E L3 -581°52'20"[ L4 S08°04'48"W LS -581°52'20"E 33.98' 112.13' 56.55' 10.00' 5.15' BDE 5 672 SF 1118-160-0851 LINE L6 L7 - LB - L9 - 118-160-071 TABLE 581° 52'20"[ N07°11 '43"E 581°52'20"E S08°07'40"W 83. 70' 29.50' 49. 79' 71 .53' PCL J3 I I , PCL J 4 1118-160-053' PCL J5 ""' ,Q ,Q J C\J """ I.!) ~ J '° 0 '7"' ""' " I a ""' 0 I") _] 'i" I") 0 I n.. ~ u1 ~ , n: ~ , CL. ll.] :::> -< r-- ll.] f"') . ::::::,.. 0 "::::( f"') 68' < "::::( w ~ Q: ll.] :r.: 0 l/) r--~o z 581°58'33"E 447.15' PCL J P. JVL 23370 P.M.8. J5b/48-49 DOC. NO. 2004-0136042 D.R. I~ r--------1 22178-10 I I 1 I I I I ---~,1 ___ J \ r- -l"1 0 . Q) 0 rri Most W' I Cor. LO-r 8 POMONA ROAD t'~I· -~M.B. 1 56/48-49 ROUTE 91 RIVERSIDE FREEWAY (Rl POB TPOB 8 ~ .LLLl.J. 9 210 LEGEND Indicates Radial Bearing Point of Beginning True Point of Beginning Title to State Access Prohibited NOTES 2 RADIAL TABLE R1 -N02° 32'27"E CURVE TABLE 3 4 LINE TABLE L10 -N81°52'20"W L 11 -N07°1 l '43"E L 12 -NBl 0 52'20"W L13 -N08°07'40"E l 14 -N83°56'15"W C1 -~=3°31 '17" R=5, 153.00' L=316. 71' 22178-10 BUILDING D£MOLITION EASEMENT -1 0 CL. co _J (_) CL. Coordinates and bearings ore on CCS 1983(2007.00) Zone 6. Distances and stationing ore grid distances. Divide by 0.99997476 to obtain ground distances. Al I distances ore in feet unless otherwise noted. FEET 0 50 100 200 300 DATE: 9-18-14 REV.: EA: OF540 FA#: I.() lO 0 I 0 t.O I 0 co ff) ro lO l!') O' O' 0 0 " I f\l '° 0 ff) "° I co 48.63' 16.38' 84 .12' 25.65' 105.66' DISTRICT COUNTY ROUTE SHEET PM SHEET NO. TOTAL SHEETS 8 RIV 91 5.2 Exhibit f,8page 20 l i l l I ' i ' ! l I I l i l I ( ! • • • 49 • 2 3 4 5 6 7 8 9 10 1 I 12 13 14 • 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 • PSOMAS EXHIBIT 'Kl' LEGAL DESCRIPTION Caltrans Parcel No. 22178-11 Temporary Erosion Control Easements APN 118-160-071 In the City of Corona, County of Riverside, State of California, being a portion of Parcel 1 of Parcel Map No. 23870 as per map filed in Book 156, Pages 48 and 49 of Parcel Maps, Records of Riverside County, California, described as follows: Parcel 1 Beginning at the most westerly comer of said Parcel 1; thence North 07°57'35" East 112.13 feet along a portion of the westerly line of said parcel to a point thereon; thence South 81°52'20" East 36.54 feet; thence North 07°46'49" East 24.02 feet to the True Point of Beginning; thence North 82°13'1l"West18.09 feet; thence North 07°34'05" East 10.00 feet; thence South 82°13'11" East 18.13 feet; thence South 07°46'49" West 10.00 feet to the True Point of Beginning. Containing 181 square feet. Parcel 2 Beginning at the most westerly comer of said Parcel 1; thence North 07°57'35" East 112.13 feet along a portion of the westerly line of said parcel to a point thereon; thence South 81°52'20" East 36.54 feet; thence North 07°46'49" East 146.94 feet to the True Point of Beginning; thence North 82°13' l l" West 20.01 feet; thence North 07°46'49" East 10.00 feet; thence South 82°13'11" East 20.01 feet; thence South 07°46'49" West 10.00 feet to the True Point of Beginning. P:\2PTG0!050 I \SURVE\'\LEGALS\22178 APN 118-160-071\Legals\22178-l I ·TECE.doc 9/1812014 -- Pagel of2 Exhibit ~.0Page 21 PSOMAS Containing 200 square feet. 2 3 1 Parcel 3 4 5 Beginning at the most westerly comer of said Parcel 1; thence North 07°57'35" East 6 112.13 feet along a portion of the westerly line of said parcel to a point thereon; thence 7 South 81°52'20" East 56.55 feet; thence South 08°04'48" West 10.00 feet; thence South 8 81°52'20" East 88.86 feet; thence North 07°11'43" East 29.50 feet; thence South 9 81°52'20" East 156.96 feet to the True Point of Beginning; thence North 08°07'40" East 10 42.86 feet; thence South 81°52'20" East I 0.00 feet; thence South 08°07'40" West 42.86 11 feet; thence North 81°52'20" West 10.00 feet to the True Point of Beginning. 12 13 Containing 429 square feet. 14 15 See Exhibit 'K.2' attached hereto and made a part hereof 16 17 The distances described herein are grid distances and are based on California Coordinate 18 System of 1983, Zone 6, 2007.00 epoch. Ground distances may be obtained by dividing 19 grid distances by the mean combination factor of the courses being described. The mean 20 1 combination factor for this conversion is 0.99997476. 21 22 23 24 25 Prepared under the direction of 26 I 27·~ 28:~~ 29 Brian E. Bullock, PLS 5260 30 , 31 ~ Date P.\2PTGOJ050J\SURVEY\LEGALS\22 J 78_APN _I I 8-l 60-071 \Lcgals\22178-l l-TECE.doc 911812014 Exhibit ;\i,1page 22 Page 2 of2 • • • • EXHIBIT K2 PARCEL# TITLE AREA APN 22178-11 PCL TECE 1 81 SF 118-160-071 22178-11 PCL 2 TECE 200 SF 118-160-071 22178-11 PCL 3 TECE 429 SF 118-160-071 j118-760-0B51 PCL 13 I PCL J4 1118-160-0531 68' l'0 I L 11 C\J S81°58 '33"E ---------TPOB PCL JS 447.15' PCL J ,... _j 0 tL, LLJ 0 :J I < 0 LLJ I') IY) ::::::::.. I -q o.:i PCL-2 P. JVL 23870 P,M,B. JSb/48-49 DOC, NO, 2D04-0J3b042 D.R. -I") 0 ro . (j) 0 -1 l'0 (_) tL, ,o .,j) 22178-11 J ll) PARCEL 't .,j) J " < ,... 0 'I' -q ,... '" ~ L20 . -1 a: 0 lQ 0 LLJ .<,; ,..._ • tL, ::r: 0 ~ ~ LI)]--. z LL. a -1 . < R=51153.00' I Ll=03031'17" L=316.71 POB Most W'I Cor. Lo-r B POMONA ROAD EXISTING R/W7 ~Ii----.M.B. 156/48-49 ROUTE 91 RIVERSIDE FREEWA y 9 270 1 LINE TABLE N39°45'26"W L1 - L2 -N07° 57'35"E L3 -581°52 '20"E l Lj -N07°46'LJ9"E LS -N82°1 3'11 "W L6 -N07° 34 '05"E L7 582°13'1 l"E - LB -S07°46'49"W L9 -N07°46'49"E L10 -N82°13'11 "W L 11 -N07° 46 '49"E L12 582°13'11 "E - 8 RADIAL TABLE R1 -N02° 32'27"E LEGEND {R) Indicates Radial Bearing POB Point of Beginning TPOB True Point of Beginning c:::=::::::) Title to State 1 1 1 1 1 Access Prohibited NOTES 2 3 '1 LlNE TABLE 33.98' L13 S07°46'49"W 112. 1 3' - L14 581°52'20"E 36.54' L15 -S08°04'48"W 24 .02' L16 S81°52 '20"E 18.09' - 10.00' L17 -NO 7° 11 I 4 3"E 18.13' L18 -581°52'20"E L19 N08°07'40"E 10.00' L20 -581°52 '20"E 146.94' L21 -S08°07'40"W 20.01' l22 -N81 ° 52 '20"W 10.00' L23 N83°56'15"W 20.01. - 22178-11 Coordinates and bearings ore on CCS 1983(2007 .00) Zone 6. Distances and stationing ore grid distances. Divide by 0.99997476 to obtain ground distances. Al I distances ore in feet unless otherwise noted. TEMPORARY EROSION CONTROL EASEMENTS FEET 0 50 100 200 300 DATE: 9-18-14 REV.: EA: OF540 FA#: I.!) lC) 0 I 0 !,O I 0 o.:i !,O lC) 0 I 0 l.O I o.:i 10.00' 56.55' 1 o.oo' 88.86' 29.50' 156.96' 42.86' 10.00' 42.86' 10.00' 105.66' DISTRICT COUNTY ROUTE SHEET PM SHEET NO. TOTAL SHEETS 8 RIV 91 5.2 Exhibit .(,),age 23 • • • 53 • • 54 Z Corona Properties, LLC 118-160-071 • BUILDING ACCESS EASEMENT 18,018 SF BUILDING DEMOLITION EASEMENT 5,672 SF ACCESS EASEMENT 5,099 SF CONSTRUCTION EASEMENT 21,820 SF EROSION CONTROL EASEMENT 810 SF FIRE CONNECTION EASEMENT 300 SF • • • • • • ATTACHMENT 3 AMENDED RESOLUTION NO. 14-017 RESOLUTION OF NECESSITY FOR THE ACQUISITION OF A PERMANENT FIRE SERVICE CONNECTION EASEMENT INTEREST IN A PORTION OF CERTAIN REAL PROPERTY, BY EMINENT DOMAIN, MORE PARTICULARLY DESCRIBED AS ASSESSOR PARCEL NO. 118-330-009, LOCATED IN CORONA, RIVERSIDE COUNTY, CALIFORNIA, FOR THE STATE ROUTE 91 CORRIDOR IMPROVEMENT PROJECT, BETWEEN PIERCE STREET ON THE EAST TO THE COUNTY LINE ON THE WEST, IN RIVERSIDE COUNTY, CALIFORNIA WHEREAS, the Riverside County Transportation Commission (the "Commission") proposes to acquire a permanent fire service connection easement interest in a portion of property identified as Assessor Parcel No. 118-330-009 (CPN 22175-9) for the SR-91 Corridor Improvement Project in Riverside County, California, pursuant to the authority granted to it by section 130220.5 of the California Public Utilities Code; and WHEREAS, pursuant to section 1245.235 of the California Code of Civil Procedure, the Commission scheduled a public hearing for Wednesday, December 10, 2014 at 9:30 a.m., at the County Administration Building, Board of Supervisors Chambers, at 4080 Lemon Street, Riverside, California, and gave to each person whose property is to be acquired and whose name and address appeared on the last equalized county assessment roll, notice and a reasonable opportunity to appear at said hearing and be heard on the matters referred to in section 1240.030 of the California Code of Civil Procedure; and WHEREAS, said hearing has been held by the Commission, and the affected property owner was afforded an opportunity to be heard on said matters; and WHEREAS, the Commission may now adopt a Resolution of Necessity pursuant to section 1240.040 of the California Code of Civil Procedure; NOW, THEREFORE, THE COMMISSION DOES HEREBY RESOLVE AND DECLARE AS FOLLOWS: Section 1. Compliance with California Code of Civil Procedure. There has been compliance by the Commission with the requirements of section 1245.235 of the California Code of Civil Procedure regarding notice and hearing. Section 2. Public Use. The public use for permanent and perpetual fire service connection easement interest in the property to be acquired is for the SR-91 Corridor Improvement Project in Riverside County, California. Section 130220.5 of the California Public Utilities Code authorizes the Commission to acquire, by eminent domain, property necessary for such purposes. Section 3. Description of Property. Attached and marked as Exhibit "A" are the legal definitions, description and map of the interest to be acquired by the Commission that describe the general location and extent of the property with sufficient detail for reasonable identification . 55 Section 4. Findings. The Commission hereby finds and determines each of the following: (a) The public interest and necessity require the proposed project; ( b) The proposed project is planned or located in the manner that will be most compatible with the greatest public good and least private injury; ( c) The property defined, described and/or depicted in Exhibit "A" is necessary for the proposed project; and ( d) The offer required by section 7267.2 of the California Government Code was made. • Section 5. Use Not Unreasonably Interfering with Existing Public Use. Some or all of the real property affected by the interest to be acquired is subject to easements and rights of way appropriated to existing public uses. The legal descriptions of these easements and rights of way are on file with the Commission and describe the general location and extent of the easements and rights of way with sufficient detail for reasonable identification. In the event the herein described use or uses will not unreasonably interfere with or impair the continuance of the public use as it now exists or may reasonably be expected to exist in the future, counsel for the Commission is authorized to acquire the herein described interest subject to such existing public • use pursuant to section 1240.510 of the California Code of Civil Procedure. Section 6. More Necessary Public Use. Some or all of the real property affected by the interest to be acquired is subject to easements and rights of way appropriated to existing public uses. To the extent that the herein described use or uses will unreasonably interfere with or impair the continuance of the public use as it now exists or may reasonably be expected to exist in the future, the Commission finds and determines that the herein described use or uses are more necessary than said existing public use. Counsel for the Commission is authorized to acquire the herein described real property appropriated to such existing public uses pursuant to section 1240.610 of the California Code of Civil Procedure. Staff is further authorized to make such improvements to the affected real property that it determines are reasonably necessary to mitigate any adverse impact upon the existing public use. Section 7. Further Activities. Counsel for the Commission is hereby authorized to acquire the hereinabove described real property in the name of and on behalf of the Commission by eminent domain, and counsel is authorized to institute and prosecute such legal proceedings as may be required in connection therewith. Legal counsel is further authorized to take such steps as may be authorized and required by law, and to make such security deposits as may be required by order of court, to permit the Commission to take possession of and use said real property at the earliest possible time. Counsel is further authorized to correct any errors or to make or agree to non- material changes in the legal description of the real property that are deemed necessary for the 56 • • • • conduct of the condemnation action, or other proceedings or transactions required to acquire the subject real property. Counsel is further authorized to reduce or modify the extent of the interests or property to be acquired so as to reduce the compensation payable in the action where such change would not substantially impair the construction and operation for the project for which the real property is being acquired. Section 8. Effective Date. This Resolution shall take effect upon adoption. APPROVED AND ADOPTED this 10th day of December 2014. ATTEST: Jennifer Harmon, Clerk of the Board Riverside County Transportation Commission Marion Ashley, Chair Riverside County Transportation Commission 57 • • • 58 • • • Legal Definitions of Property to be Acquired The following is a list of definitions of legal rights to be acquired by Riverside County Transportation Commission: "Fire Service Connection Easement" refers to a permanent and perpetual non- exclusive easement in favor of RCTC, its successors and assigns, over, upon, under, and across the lands hereinafter described together with the right to access, maintain, improve, alter, inspect, replace, and use for the replacement, repair, operation, and maintenance of fire service connections/backflow detectors as determined necessary by RCTC, together with all necessary rights incidental thereto in connection with the exercise of the easement rights described herein. Property Owner shall not erect or construct, or permit to be erected or constructed, any building, structure or improvement on, over, or under any portion of the easement, or plant trees or any other vegetation on any portion of the easement except with the prior written consent of RCTC, its successors and assigns, which consent shall not be unreasonably withheld. RCTC shall have the right to trim, cut or clear away any trees, brush, or other vegetation from time to time as detennined in its sole discretion, without payment of additional compensation. No other easements shall be granted on, under or over the easement without the prior written consent ofRCTC, its successors and assigns. The ground elevations of the easement upon completion of construction shall not be further increased or decreased without the prior written consent of RCTC, its successors and assigns. Property Owner shall not cause, directly, indirectly or negligently, any interference with or harm to the rights conveyed hereunder . 17336.02100\9417846.1 EXHIBIT~ PAGE 1 • • • 60 • 2 3 4 5 6 7 8 9 10 11 12 13 14 15 • 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 • PSOMAS Caltrans Parcel No. 22175-9 EXHIBIT '11' LEGAL DESCRIPTION Fire Service Connection Easements APN 118-330-009 In the City of Corona, County of Riverside, State of California, being a portion of Parcel 1 as shown on that ce1iain Parcel Map filed in Book 40, Pages 65 and 66 of Parcel Maps, Records of Riverside County, California, described as follows: Beginning at the southwesterly comer of said Parcel 1; thence along the westerly line of said Parcel 1, North 07°59'08" East 29.18 feet to the beginning of a non-tangent curve, concave southerly, having a radius of 5,172.00 feet, a radial line to said beginning bears North 07°50' 48" West; thence leaving said westerly line, and traveling easterly 90.44 feet along said curve a through a central angle of 1°00'07" to the True Point of Beginning, a radial line to said True Point of Beginning bears North 6°50'41" West; thence continuing along said curve 20.00 feet through a central angle of 0°13'18"; thence North 6°44'16" West 15.00 feet; thence South 83°15'44" West 20.00 feet; thence South 6°44'16" East 15.00 feet to the True Point of Beginning. Contains 300 square feet. The distances described herein are grid distances and are based on California Coordinate System of 1983, Zone 6, 2007.00 epoch. Ground distances may be obtained by dividing grid distances by the mean combination factor of the courses being described. The mean combination factor for this conversion is 0.999974 76. See Exhibit '12' attached hereto and made apart hereof. M:\2PTG010501 \SURVEY\LEGALS\22175 _APN _118-330-009\Legal\22175-9.docx 7/28/2014 EXHIBJT9\1; PAGE 2 Page 1 of2 4 5 6 7 8 9 IO 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 PSOMAS Prepared under the direction of \ /v V '· Anna M,.£eal, PLS 4955 Date M:\2PTG010501 \SURVEY\LEGALS\22175_APN_l18-330-009\Legal\22175-9.docx 7/28/2014 EXHIBIT9f. PAGE 3 • • Page 2 of2 • • • • EXHIBIT I2 PARCEL# TITLE GRANTOR AREA APN 22175-9 FSCE DVORAK & PAYNE LTD 300 SF 118-330-009 RAD I AL TABLE R1 R2 R3 R4 R5 - R6 - S03° 53 '26"E N05° 38 '03"W N07°50'48"W N05° 40'1 O"W N06 ° 50 '41 "W N06° 37'24"W /118-320-007/ ' L() 0 ~~~~~~~~~~~~~ ~ /118-320-008/ PCL J RJSJ -45/20 c'--hcs ~ RS DETAIL A NTS w ro 0 rn LO 0 r-- 0 z SEE DETAIL A LEGEND "'"" w ro 0 LO 0 r-- 0 z (R) Indicates Radial Bearing POB Point of Beginning ~ Title to State 1 1 1 1 1 Access Prohibited NOTES Coordinates and bearings are on CCS 1983(2007 .00) Zone 6. Distances and stationing are grid distances. Divide by 0.99997476 to obtain ground distances. Al I distances are in feet unless otherwise noted. PCL CURVE TABLE C1 -6.=01°00'07" R=5172.00' L=90.44" C2 -6.=01°55'20" R=5153.00' L=172.88' C3 -6.=03°39'57" R= 366.00' L= 23.42' C4 -6.=00°13'18" R=5172.00' L= 20.00' . r-- 0 "'"" LINE TABLE L 1 -N07° 59'08"E L2 S07° 58 '36"W L3 -S06° 44 '16"E L4 -N83°15'44"E L5 -N06°44'16"W 118-330-117 29.1 8 30.1 3' 1 5.00' 20.00' 1 5.00' PJ\RCEL JVJJ\P PCL 2 PCL 3 FEET 0 -40/bS-bb w lD JY) ro L() 22175-9 FIRE SERVICE CONNECTION EASEMENTS 50 100 200 PREPARED BY: DATE: 7-27-2014 REV. EA: OF540 FA1*: PSOMAS 3 Hutton Centre Dr-ive, Ste. 200 Santo Ano, California 92707 (714)751-7373/(714)545-8883 (Fax) DISTRICT COUNTY ROUTE 8 SHEET PM SHEET NO. TOTAL SHEETS 5.0 --------------1 I • • • 64 • c I-.... w en 0 zo 0 CV) >-0 I- <:( I z 0. 0 w ca ~ ~ w {f) ~ rb <( w ~ ;: z 0 1-1 0 ~ > w c z z 0 u 1-1 LL • I • • • THE COMMISSION IS REQUESTED TO MAKE THE FOLLOWING FINDINGS : 1. The public interest and necessity require the proposed project; 2. The project is planned or located in a manner that will be most compatible with the greatest public good and the least private injury; 3. The real property to be acquired is necessary for the project; and 4. The offer of just compensation has been made to the property owner. .·CORONA 12/10/2014 1 l.EI-Corona, LLC 2.Z Corona Properties, LLC 3.Dvorak and Payne, Ltd. No. Ownership Offer Date 1 EI-Corona, LLC October 31, 2014 Revised Offer: December 9, 2013 Supplemental Offer: 2 Z Corona Properties, LLC April 8, 2014 3 Dvorak & Payne, Ltd. October 17, 2014 12/10/2014 2 12/10/2014 PARCEL 1 3 12/10/2014 PARCEL 2 4 ---------------- 12/10/2014 PARCEL 3 5 THE COMMISSION ADOPT A RESOLUTION OF NECESSITY BASED ON THE FOLLOWING FINDINGS: 1. The public interest and necessity require the proposed project; 2. The project is planned or located in a manner that will be most compatible with the greatest public good and the least private injury; 3. The real property to be acquired is necessary for the project; and 4. The offer of just compensation has been made to the property owner. 12/10/2014 6 Indian Wells (760) 568-2611 Irvine (949) 263-2600 Los Angeles (213) 617-8100 Ontario (909) 989-8584 l~lk BEST BEST & KRIEGER :i ATTORNEYS AT LAW 3390 University Avenue, 5th Floor, P.O. Box 1028, Riverside, CA 92502 Phone: (951) 686-1450 I Fax: (951) 686-3083 I www.bbklaw.com Sacramento (916) 325-4000 San Diego (619) 525-1300 Walnut Creek (925) 977-3300 Washington, DC (202) 785-0600 Margaret L. Barnes (951) 826-8357 margaret.barnes@bbklaw.com File No. 17336.02100 lo)[g © [§ 0 WL~fil) /f\i NOV 2 .4 2014 U1J Jennifer Harmon Clerk of the Board November 21, 2014 RIVERSIDE COWNTY TRANSPORTATION COMMISSION VIA HAND DELIVERY Riverside County Transportation Commission 4080 Lemon Street, 3rd Floor Riverside, California 92501 Re: Notices of Hearing to Consider Adoption of Amendments to Resolutions of Necessity, as to Dvorak & Payne, Ltd.:., APN 118-330-009 (CPN 22175-9) and Z Corona Properties, LLC, APN 118-160-071(CPN22178-6) RCTC/SR91 CIP Project Dear Jennifer: Attached are the original notices of Hearing to Property Owners, with proofs of mailing, of the hearing scheduled for December 10, 2014 for the adoption of amendments to previously- adopted resolutions of necessity, for additional right of way as to the parcels referenced above. One additional property, owned by EI-Corona, LLC (APN 118-330-017; CPN 22176-9), will also be considered at that time. However, by agreement with legal counsel, EI-Corona, LLC waived formal notice. These notices are being provided for your use in noting the date of mailing at the hearing. Please do not hesitate to contact me, should have any questions. Very truly yours, L-41.J~ . ,{ . .L #' #<' / /{/?<.c;J/l/l[(... ve,· ZJ /bt.#;J...- MargaretvL. Barnes Senior Litigation Paralegal for BEST BEST & KRIEGER LLP Attachments copy: Ruby Arellano, RCTC (w/Attachments, via e-mail only) 17336.02100\9417893.1 NOTICE OF HEARING TO CONSIDER AMENDMENT OF RESOLUTION OF NECESSITY Pursuant to Section 1245.235 of the California Code of Civil Procedure, you are hereby notified that at a regular meeting to be held on Wednesday, December 10, 2014 at 9:30 a.m., at the Riverside County Administration Building, Board of Supervisors Chambers, located at 4080 Lemon Street, Riverside, California, the Commission of the Riverside County Transportation Commission intends to consider adopting a Resolution to amend Resolution of Necessity 14-017, adopted on May 14, 2014, to add additional property interests and authorize the commencement of eminent domain proceedings for the acquisition of said additional real property interests in property that, according to the last equalized county assessment roll, is owned by you. The public use for which this resolution of necessity will be considered is for the SR-91 Corridor Improvement Project in Riverside County, California. The definition of the additional property rights to be acquired, together with the legal descriptions and corresponding depictions, are attached to this notice. A hearing will be held at the time and place mentioned above. You have the right to appear and be heard on the following matters: 1. Whether the public interest and necessity require the project for which the property is sought to be acquired. 2. Whether the project is planned or located in the manner that will be most compatible with the greatest public good and least private injury. 3. Whether the property sought to be acquired by eminent domain and described in the Resolution of Necessity is necessary for the proposed project. 17336.02100\9393995. l 4. Whether the offer required by Section 7267 .2 of the California Government Code has been made. Pursuant to California Code of Civil Procedure section 1245.235(b)(3), your failure to file a written request to appear and be heard within 15 days of the date that this Notice is mailed may result in the waiver of your right to appear and be heard on the above-stated matters and issues that are the subject of the hearing. ALL COMMUNICATIONS SHOULD BE ADDRESSED TO: Jennifer Harmon Clerk of the Board Riverside County Transportation Commission 4080 Lemon Street, 3rd Floor Riverside, California 92501 DATE OF HEARING: PLACE OF HEARING: DATED: November~, 2014. 17336.02100\9393995.1 Wednesday, December 10, 2014 9:30 a.m. Riverside County Administration Building Board of Supervisors Chambers 4080 Lemon Street Riverside, California 92501 BEST BEST & KRIEGER LLP ,' /! / By: _....,__.,{_(~·~.·~L~cl=---:/j---+---- Mark A. Easter t Attorneys for · Riverside County Transportation Commission Legal Definitions of Property to be Acquired The following is a list of definitions of legal rights to be acquired by Riverside County Transportation Commission: "Fire Service Connection Easement" refers to a permanent and perpetual non- exclusive easement in favor of RCTC, its successors and assigns, over, upon, under, and across the lands hereinafter described together with the right to access, maintain, improve, alter, inspect, replace, and use for the replacement, repair, operation, and maintenance of fire service connections/backflow detectors as determined necessary by RCTC, together with all necessary rights incidental thereto in connection with the exercise of the easement rights described herein. Property Owner shall not erect or construct, or permit to be erected or constructed, any building, structure or improvement on, over, or under any portion of the easement, or plant trees or any other vegetation on any portion of the easement except with the prior written consent of RCTC, its successors and assigns, which consent shall not be unreasonably withheld. RCTC shall have the right to trim, cut or clear away any trees, brush, or other vegetation from time to time as determined in its sole discretion, without payment of additional compensation. No other easements shall be granted on, under or over the easement without the prior written consent ofRCTC, its successors and assigns. The ground elevations of the easement upon completion of construction shall not be further increased or decreased without the prior written consent of RCTC, its successors and assigns. Property Owner shall not cause, directly, indirectly or negligently, any interference with or harm to the rights conveyed hereunder. 17336.02100\9417846.1 EXHIBIT A, PAGE 1 PSOMAS 2 3 4 Caltrans Parcel No. 22175-9 EXHIBIT '11' LEGAL DESCRIPTION 5 Fire Service Connection Easements 6 APN 118-330-009 7 8 In the City of Corona, County of Riverside, State of California, being a portion of 9 Parcel 1 as shown on that certain Parcel Map filed in Book 40, Pages 65 and 66 of Parcel to Maps, Records of Riverside County, California, described as follows: l1 12 Beginning at the southwesterly comer of said Parcel 1; thence along the westerly line of 13 said Parcel 1, North 07°59'08" East 29.18 feet to the beginning of a non-tangent curve, 14 concave southerly, having a radius of 5, 172.00 feet, a radial line to said beginning bears 15 North 07°50'48" West; thence leaving said westerly line, and traveling easterly 16 90.44 feet along said curve a through a central angle of 1°00'07" to the True Point of 17 Beginning, a radial line to said True Point of Beginning bears North 6°50'41" West; 18 thence continuing along said curve 20.00 feet through a central angle of0°13'18"; thence 19 North 6°44'16" West 15.00 feet; thence South 83°15'44" West 20.00 feet; thence 20 South 6°44'16" East 15.00 feet to the True Point of Beginning. 21 22 Contains 300 square feet. 23 24 The distances described herein are grid distances and are based on California Coordinate 25 System of 1983, Zone 6, 2007.00 epoch. Ground distances may be obtained by dividing 26 grid distances by the mean combination factor of the courses being described. The mean 27 combination factor for this conversion is 0.99997476. 28 29 See Exhibit '12' attached hereto and made apart hereof. 30 31 M:\2PTG01050l\SURVEY\LEGALS\22175_APN_l l8-330-009\Legal\22175-9.docx 7/28/2014 EXHIBIT A, PAGE 2 Page I of2 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 PSOMAS Prepared under the direction of \ ! Anna MA3eal, PLS 4955 Date M:\2PTGOl 0501\SURVEY\LEGALS\22175 _APN_l 18-330-009\Legal\22175-9.docx 7/28/2014 EXHIBIT A, PAGE 3 Page 2 of2 EXHIBIT I2 PARCEL# TITLE GRANTOR AREA APN 22175-9 FSCE DVORAK & PAYNE LTD 300 SF 118-330-009 RADIAL TABLE R1 R2 R3 R4 R5 - R6 - S03° 53 '26"E N05° 38'03"W N07°50'48"W N05° 40'1 O"W N06° 50' 41 "W N06° 37'24"W /118-320-0071 It 18-320-0081 PCL J R .. S .. 45/20 A NTS SEE DETA LEGEND ' I") N . ' ~ l[) 00 0 """ . t-- l[) '<;]" w 00 0 w O'l 00 L(') 0 0 t-- 0 L(') z 0 t-- 0 z (R) POB ~ Indicates Radial Bearing Point of Beginning Title to State I II II Access Prohibited NOTES Coordinates and bearings are on CCS 1983(2007 .00) Zone 6. Distances and stationing are grid distances. Divide by 0.99997476 to obtain ground distances. Al I distances are in feet unless otherwise noted. PCL CURVE TABLE C1 -A=01°00'07" R=5172 .00' C2 -A=01° 55'20" R=51 53.00' C3 -A=03° 39'57" R= 366.00' C4 -A=00°13'18" R=5172.00' . t-- 0 '<;]" LINE TABLE L 1 -N07° 59'08"E L2 -S07°58'36"W L3 -S06° 44 '16"E L4 -N83°15'44"E L5 -N06°44'16"W 118-330-11 7 L=90.44 II L=172.88' L= 23.42' L= 20.00' 29. 1 8 30.13' 1 5 .00' 20.00' 1 5.00' PARCEL MAP PCL 2 PCL 3 w ~ w ('() ~ 00 I") L(') 00 l{) 22175-9 FIRE SERVICE CONNECTION EASEMENTS FEET 0 50 100 200 PREPARED BY: DATE: 7-27-2014 REV. EA: OF540 FA#: PSOMAS DISTRICT COUNTY ROUTE SHEET PM SHEET NO. TOTAL SHEETS 8 RIV 91 5.0 PROOF OF MAILING NOTICE I, Margaret L. Barnes, acting on behalf of the Riverside County Transportation Commission, hereby certify that on November~~014, I mailed a copy of the attached notice by first-class mail to the following owner of real property located in the County of Riverside, State of California, more particularly described as Assessor Parcel No. 118-330-009 (CPN 22175-9): Dvorak & Payne LTD 1570 E. Edinger Avenue, #12 Santa Ana, CA 92705 Dvorak & Payne, Ltd. c/o David Dvorak P. 0. Box 1208 Carpinteria, CA 93014 Dvorak & Payne, Ltd. 1441 Pomona Road Corona, CA 92882 Kevin H. Brogan, Esq. Hill, Farrer & Burrill LLP One California Plaza, 37th Floor 300 South Grand A venue Los Angeles, CA 90071-3147 DATED: NovemberQJ,~14. 17336.02100\9393995.1 Record Owner Record Owner Record Owner Courtesy Copy Margaret I.f{iarnes NOTICE OF HEARING TO CONSIDER AMENDMENT OF RESOLUTION OF NECESSITY Pursuant to Section 1245.235 of the California Code of Civil Procedure, you are hereby notified that at a regular meeting to be held on Wednesday, December 10, 2014 at 9:30 a.m., at the Riverside County Administration Building, Board of Supervisors Chambers, located at 4080 Lemon Street, Riverside, California, the Commission of the Riverside County Transportation Commission intends to consider adopting a Resolution to amend Resolution of Necessity 14-002, adopted on January 8, 2014, to add additional property interests and authorize the commencement of eminent domain proceedings for the acquisition of said additional real property interests in property that, according to the last equalized county assessment roll, is owned by you. The public use for which this resolution of necessity will be considered is for the SR-91 Corridor Improvement Project in Riverside County, California. The definition of the additional property rights to be acquired, together with the legal descriptions and corresponding depictions, are attached to this notice. A hearing will be held at the time and place mentioned above. You have the right to appear and be heard on the following matters: 1. Whether the public interest and necessity require the project for which the property is sought to be acquired. 2. Whether the project is planned or located in the manner that will be most compatible with the greatest public good and least private injury. 3. Whether the property sought to be acquired by eminent domain and described in the Resolution of Necessity is necessary for the proposed project. 17336.02100\9417838.l 4. Whether the offer required by Section 7267 .2 of the California Government Code has been made. Pursuant to California Code of Civil Procedure section 1245.235(b)(3), your failure to file a written request to appear and be heard within 15 days of the date that this Notice is mailed may result in the waiver of your right to appear and be heard on the above-stated matters and issues that are the subject of the hearing. ALL COMMUNICATIONS SHOULD BE ADDRESSED TO: Jennifer Harmon Clerk of the Board Riverside County Transportation Commission 4080 Lemon Street, 3rd Floor Riverside, California 92501 DATE OF HEARING: PLACE OF HEARING: /I ('J DATED: November _t,;;; 2014. 17336.02100\9417838.1 Wednesday, December 10, 2014 9:30 a.m. Riverside County Administration Building Board of Supervisors Chambers 4080 Lemon Street Riverside, California 92501 BEST BEST &-KRIEGER LLP .·/{;,1 / f By: , .. ( ·' / .·· . l_,/./'L----,,.././ M~k·~ast~r Attorneys for Riverside County Transportation Commission Legal Definitions of Property to be Acquired The following is a list of definitions of legal rights to be acquired by Riverside County Transportation Commission: "Fire Service Connection Easement" (as to 22178-6) refers to a permanent and perpetual non-exclusive easement in favor of RCTC, its successors and assigns, over, upon, under, and across the lands hereinafter described together with the right to access, maintain, improve, alter, inspect, replace, and use for the replacement, repair, operation, and maintenance of fire service connections/backflow detectors as determined necessary by RCTC, together with all necessary rights incidental thereto in connection with the exercise of the easement rights described herein. Property Owner shall not erect or construct, or permit to be erected or constructed, any building, structure or improvement on, over, or under any portion of the easement, or plant trees or any other vegetation on any portion of the easement except with the prior written consent of RCTC, its successors and assigns, which consent shall not be unreasonably withheld. RCTC shall have the right to trim, cut or clear away any trees, brush, or other vegetation from time to time as determined in its sole discretion, without payment of additional compensation. No other easements shall be granted on, under or over the easement without the prior written consent of RCTC, its successors and assigns. The ground elevations of the easement upon completion of construction shall not be further increased or decreased without the prior written consent of RCTC, its successors and assigns. Property Owner shall not cause, directly, indirectly or negligently, any interference with or harm to the rights conveyed hereunder. "Building Access Easement" (as to 22178-7) refers to a non-exclusive easement and right of way in favor of RCTC, its successors and assigns, together with the right to construct, reconstruct, repair, extend, maintain and traverse an access way to access RCTC owned facilities and/or construction site, as determined necessary by RCTC, together with all necessary rights incidental thereto, on, over, under and across the property in connection with the exercise of any easement rights described herein. Property Owner shall not erect or construct, or permit to be erected or constructed, any building, structure or improvement on, over, or under any portion of the easement, or plant trees or any other vegetation on any portion of the easement except with the prior written consent of RCTC, its successors and assigns. 17336.02100\9393575.1 Exhibit A, Page 1 RCTC shall have the right to trim, cut or clear away any trees, brush, or other vegetation from time to time as determined in its sole discretion, without payment of additional compensation. No other easements shall be granted on, under or over the easement without the prior written consent of RCTC, its successors and assigns. The existing ground elevations upon completion of construction shall not be further increased or decreased without the prior written consent of RCTC. Property Owner shall not cause, directly, indirectly or negligently, any interference with or harm to the rights conveyed hereunder. Such right shall be exercised for a period of 9 months, beginning no fewer than 72 hours after the date that RCTC provides written notice of commencement of possession to the property owner. "Temporary Construction Easement (TCE)" (as to 22178-8) refers to the right ofRCTC, its successors and assigns, to engage in construction and related activities for the project, together with all necessary rights of ingress and egress to the easement area in connection with the exercise of any of the easement rights. Such right shall be exercised for a period of 12 months, beginning no fewer than 72 hours after the date that RCTC provides written notice of commencement of possession to the property owner. The duration of the rights under this easement shall not extend beyond November 6, 2017, or upon filing of a Notice of Completion, whichever is earlier. Property Owner shall not cause, directly, indirectly or negligently, any interference with or harm to the rights conveyed hereunder. "Temporary Access Easement" (as to 22178-9) refers to a temporary non-exclusive easement and right of way in favor of RCTC, its successors and assigns, to traverse and maintain an access way to access RCTC facilities and/or construction site, as determined necessary by RCTC, together with all necessary rights incidental thereto, on, over, under and across the property in connection with the exercise of any easement rights described herein. Property Owner shall not erect or construct, or permit to be erected or constructed, any building, structure or improvement on, over, or under any portion of the easement, or plant trees or any other vegetation on any portion of the easement, except with the prior written consent of RCTC, its successors and assigns. RCTC shall have the right to trim, cut or clear away any trees, brush, or other vegetation 17336.02100\9393575. l Exhibit A, Page 2 from time to time as determined m its sole discretion, without payment of additional compensation. No other easement shall be granted on, under or over the easement without the prior written consent ofRCTC, its successors and assigns. Such rights shall be exercised for a period of twelve (12) consecutive months, beginning no fewer than 72 hours after the date that RCTC provides written notice of commencement of possession to the property owner. The duration of the rights under this easement shall not extend beyond November 6, 2017, or upon filing of a Notice of Completion, whichever is earlier. Property Owner shall not cause, directly, indirectly or negligently, any interference with or harm to the rights conveyed hereunder. "Building Demolition Easement" (as to 22178-10) refers to an exclusive easement and right of way in favor of RCTC, its successors and assigns, together with the right to construct, reconstruct, repair, extend, maintain and traverse an access way to access RCTC owned facilities and/or construction site, as determined necessary by RCTC, together with all necessary rights incidental thereto, on, over, under and across the property in connection with the exercise of any easement rights described herein. Property Owner shall not erect or construct, or permit to be erected or constructed, any building, structure or improvement on, over, or under any portion of the easement, or plant trees or any other vegetation on any portion of the easement except with the prior written consent of RCTC, its successors and assigns. RCTC shall have the right to trim, cut or clear away any trees, brush, or other vegetation from time to time as determined in its sole discretion, without payment of additional compensation. No other easements shall be granted on, under or over the easement without the prior written consent of RCTC, its successors and assigns. The existing ground elevations upon completion of construction shall not be further increased or decreased without the prior written consent of RCTC. Property Owner shall not cause, directly, indirectly or negligently, any interference with or harm to the rights conveyed hereunder. Such right shall be exercised for a period of 9 months, beginning no fewer than 72 hours after the date that RCTC provides written notice of commencement of possession to the property owner. 17336.02100\9393575. l Exhibit A, Page 3 "Temporary Erosion Control Easement" (as to 22178-11) refers to an exclusive temporary easement and right of way in favor of RCTC, its successors and assigns, together with the right to plant and maintain grass, plants and trees and to place rock riprap or other erosion control improvements for the protection and beautification of same, as determined necessary by RCTC, together with all necessary rights incidental thereto, on, over, under and across the property in connection with the exercise of any easement rights described herein. Property Owner shall not erect or construct, or permit to be erected or constructed, any building, structure or improvement on, over, or under any portion of the easement, or plant trees or any other vegetation on any portion of the easement except with the prior written consent of RCTC, its successors and assigns. RCTC shall have the right to trim, cut or clear away any trees, brush, or other vegetation from time to time as determined in its sole discretion, without payment of additional compensation. No other easements shall be granted on, under or over the easement without the prior written consent ofRCTC, its successors and assigns. The ground elevations of the easement upon completion of construction shall not be further increased or decreased without the prior written consent of RCTC. Property Owner shall not cause, directly, indirectly or negligently, any interference with or harm to the rights conveyed hereunder. 17336.02100\9393575.l Exhibit A. Page 4 1 2 3 PSOMAS 4 Caltrans Parcel No. 22178-6 EXHIBIT 'Fl' LEGAL DESCRIPTION 5 Fire Service Connection Easement 6 APN 118-160-071 7 8 In the City of Corona, County of Riverside, State of California, being a portion of Parcel 9 1 of Parcel Map No. 23870 as per map filed in Book 156, Pages 48 and 49 of Parcel 10 Maps, Records of Riverside County, California, described as follows: 11 12 Beginning at the most westerly southwesterly comer of said Parcel 1; thence along the 13 westerly line of said Parcel, North 07°57'35" East 34.52 feet; thence leaving said 14 westerly line, South 40°08'25" East 22.54 feet to the beginning of a non-tangent curve, 15 concave to the south, having a radius of 5,034.00 feet and to which beginning a radial 16 line bears North 01°13'43" East; thence easterly 110.33 feet along said curve through a 17 central angle of 01°15'21 ";thence South 87°30'56" East 12.60 feet to the True Point of 18 Beginning; thence South 87°30'56" East 20.00 feet; thence North 3°57'30" East 19 15.00 feet; thence North 87°30'56" West 20.00 feet; thence South 3°57'30" West 20 15.00 feet to the True Point of Beginning. 21 22 Containing 300 square feet. 23 24 The distances described herein are grid distances and are based on California Coordinate 25 System of 1983, Zone 6, 2007.00 epoch. Ground distances may be obtained by dividing 26 grid distances by the mean combination factor of the courses being described. The mean 27 combination factor for this conversion is 0.99997476. 28 29 See Exhibit 'F2' attached hereto and made apart hereof. 30 31 M:\2PTGO 10501 \SURVEY\LEGALS\22178_APN_118-160-071 \Legal\22178-6.docx 7/29/2014 Exhibit A, Page 5 Page 1 of2 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 PSOMAS Prepared under the direction of PLS 4955 Date M:\2PTGO 10501\SURVEY\LEGALS\22l78_APN_118-160-071 \Legal\22178-6.docx 7/29/2014 Exhibit A, Page 6 Page 2 of2 PARCEL# TITLE 22178-6 FSCE RADIAL TABLE R 1 -N02° 32 '27"E R2 -N01°13'43"E CURVE TABLE c 1 -t.= 01 ° 1 5 '21 " R=5034 .00' L=110.33' LlJ :::::> ' 2: I"- r0 LLJ . ,Q ::::::.. 0 ,Q '<:::( r0 J C\J lf) 68' ,Q 2: a ,, """ I a '<:::( a 'r ~ w IV) -1 L() IV) (..") 0:: r0 I 0.... LlJ ' co [Q :r: I"- L() ~ V) 0.... 9 8 LEGEND ' ""'" L() N N w EXHIBIT F2 GRAN TOR AREA APN Z CORONA PROPERTIES, LLC 300 SF 118-160-071 LINE TABLE LINE TABLE L1 -N39°45'26"W 33.98' L2 -N83°56'15"W 105.66' L3 -S08°01 '54"W 61 .07' L4 -S87°30'56"E 12.60' L5 - L6 - L7 - L8 - S87° 30'56"E N03° 5 7 '30"E N87° 30'56"W S03° 5 7 '30"W 20.00' 1 5.00' 20.00' 15.00' P.M. NO. 20938 ,~1-1-8--1-6_0 ___ 0_85~, P.M.8. l3b/98-JOJ 1118-160-0531 PCL 13 PCL J4 · · PCL 15 N81°58 '33"W 447.15' PCL P.M. NO. 23870 P.M.8. JSb/48-49 DOC. NO. 2004- 0 l3b042; D.R. PROPOSED ,---, I 0 POMONA ROAD EXISTING FREEWAY R/W ROUTE 91 RIVERSIDE FR EWAY C/L STATIONING 2 3 270 RIVERSIDE FREEWAY ROUTE 91 1118-160-0551 PCL 7 ' P. M. r0 0 NO. 20938 . en 0 PCL 8 r0 1118-160-056, w ""'" P.NLB. L() 0 l3b/98-JOJ 0 1118-160-0571 cc 0 PCL 9 z 4 275 (R} POB Indicates Radial Bearing Point of Beginning c:::> Title to State II II I Access Prohibited NOTES Coordinates and bearings are on CCS 1983(2007 .00) Zone 6. Distances and stationing ore grid distances. Divide by 0.99997476 to obtain ground distances. Al I distances are in feet unless otherwise noted. FEET 0 PREPARED BY: DATE: 07-29-14 22178-6 FIRE SERVICE CONNECTION EASEMENT I 50 REV. : 100 200 ~00 EA:OF540 FA#: PSOMAS DISTRICT COUNTY ROUTE SHEET PU SHEET NO. TOTAL SHEETS 3 Hutton Centre Drive, Ste. 200 Santo Ano, Col ifor"nia 92707 (714)751-7373/(714)545-8883 (Fox) 8 RIV 91 5.2 Map Check Report Project: 2PTG010),01MSM Alignment: 22178_/'ft, Description: 20170728MM Type Point Name\ Direction Length --------------------------------- POB s 87°30'56" E PI } N 3°57'30" E PI ) N 87°30'56" w PI } s 3°57'30" w POE ) Northing Error: Easting Error: Closing Direction: Closing Distance: Closed Area: Perimeter: Precision: 0.00 ft 0.00 ft N 0°00'00" E 0.00 ft 300 sq ft (0 ac) 70.01 ft le+.40 20.00 15.00 20.00 15.00 Northing Easting ----------------------------- 2267489.46 6155734.13 2267488.59 6155754.12 2267503.56 6155755.15 2267504.42 6155735.17 2267489.46 6155734.13 file:///C:/Users/marcelino.miller/ AppData/L~;r,~aadsReport.txt Page 1of1 Elevation ---------- 0.00 0.00 0.00 0.00 0.00 7/29/2014 2 3 PSOMAS EXHIBIT 'GI' LEGAL DESCRIPTION 4 Caltrans Parcel No. 22178-7 S Building Access Easement 6 APN 118-160-071 7 8 In the City of Corona, County of Riverside, State of California, being a portion of Parcel 9 1 of Parcel Map No. 23870 as per map filed in Book 156, Pages 48 and 49 of Parcel I 10 Maps, Records of Riverside County, California, described as follows: 11 12 I Beginning at the most westerly comer of said Parcel 1; thence North 07°57 135 11 East 13 1 . 112.13 feet along a portion of the westerly line of said parcel to a point thereon; thence 14 South 81°52'20" East 56.55 feet to the True Point of Beginning; thence North 08°11 '52" 15 East 62.64 feet; thence North 07°44 114" East 62.96 feet; thence North 07°16'39" East 16 47.88 feet; thence South 81°42 146" East 100.94 feet; thence South 08°07'40" West 153.69 17 feet; thence North 81°5212011 West 11.49 feet; thence South 07°11 '43" West 29.50 feet; 18 thence North 81°52'20" West 88.86 feet; thence North 08°04'48" East 10.00 feet to the 19 True Point of Beginning. 20 21 Containing 18,018 square feet 22 23 See Exhibit 'G2' attached hereto and made a part hereof 24 25 The distances described herein are grid distances and are based on California Coordinate 26 System of 1983, Zone 6, 2007.00 epoch. Ground distances may be obtained by dividing 27 grid distances by the mean combination factor of the courses being described. The mean 28 combination factor for this conversion is 0.999974 76. 29 JO 31 P:\2PTG010501\SURVEY\LEGALS\22178_APN_l I 8-16().()71\Legals\22178-7-BAE.doc 9/18/2014 Exhibit A, Page 9 Page 1 of2 PSOMAS 2 Prepared under the direction of 3 4 5 9--18-tf. 6 Brian E. Bullock, PLS 5260 Date 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 P:\2PTGO I 0501\SURVEY\LEGALS\22178 _APN _I 18-160-071 \Legals\22178-7-BAE.doc 9/1812014 Exhibit A, Page 1 O Page 2 of2 EXHIBIT G2 PARCEL# TITLE AREA APN 22178-7 BAE 18,018 SF 118-160-071 LINE TABLE LINE TABLE LINE TABLE L 1 -N39°45'26"W L2 -N07°57'35"E L3 S81°52'20"E L4 -N08°11 '52"E LS -N07° 44 '14"E 33.98' 112.13' 56.55' 62.64' 62.96' LG -N07°16'39"E L7 -S81°42'46"E LB -N81°52'20"W 47.88' 100.94' 11 .49' L9 -S07°11'43"W L10 -N81°52'20"W L11 N08°04'48"E L12 -N83°56'15"W t\J 0 I 0 ,...., ,...., I co ,_ Lu ~ ' < ,._ Lu ,...., . '° :::::. 0 '° ~ .... J ,...., "" 1.0 68' J '° 'i" T""-" < T""-0 ~ ~ 'i" -1 ~ 0 n.. , al Q:: LU ~, ' 2: ::c 0 n.. , l/)<b n.. z l- ·0 <-1 1118-160-0851 PCL 13 I I PCL J4 1118-160-053 I PCL 15 S81°58'33"E 447.15' L7 22178-7 PGL J PJMJ 23870 P.M.BJ 156/48-49 DOCJ NO. 2004-0136042 DJR. ,-r--------, I I I I I I I I LS ----~L' : ¥--..,._---~""'-L 9 I I -----1 LOI B POMONA ROAD EXISTING R/W \ r- en 0 ROUTE 91 RIVERSID£ FREEWA y 2 3 g 270 s LEGEND CURVE TABLE ' I") 0 . Ol 0 I") 3: -v I{) (R) POB TPOB lndicotes Rodiol Bearing Point of Beginning True Point of Beginning Title -to State Cl -fi=3°31'17" R=5,153.00' L=316.71' RADIAL TABLE c=:J II I II Access Prohibited NOTES Coordinates and bearings ore on CCS 1983(2007 .00} Zone 6. Distances and stationing ore grid distances. Divide by 0.99997476 to obtain ground distances. Al I distances ore in feet unless otherwise noted. R1 -N02°32'27"E 22178-7 BUILDING ACCESS EASEMENT FEET 0 50 100 200 T""- -1 0 n.. m -1 (.) n.. Cl' 300 PREPARED BY: DATE: 9-18-14 REV.: EA: OF540 FA#: 29.50' 88.86' 10.00' 105.66' LO LO 0 I 0 Y) I a oo I , 00 ~ ro , PSOMAS DISTRICT COUNTY ROUTE SHEET PM SHEET NO. TOTAL SHEETS 8 RIV 91 5.2 Exhibit A, Page 11 2 3 PSOMAS EXHIBIT 'Hl' LEGAL DESCRIPTION 4 Caltrans Parcel No. 22178-8 5 1 Temporary Construction Easement 6 I APN 118-160-071 7 8 In the City of Corona, County of Riverside, State of California, being a portion of Parcel 9 1 of Parcel Map No. 23870 as per map filed in Book 156, Pages 48 and 49 of Parcel IO Maps, Records of Riverside County, California, described as follows: 11 12 Beginning at the most westerly comer of said Parcel 1; thence North 07°57'35'' East 13 34.52 feet along a portion of the westerly line of said parcel to a point thereon, said point 14 being the True Point of Beginning; thence North 07°57'35 11 East 77.60 feet; thence 15 South 81°52'20" East 56.55 feet; thence South 08°04'48" West 10.00 feet; thence South 16 81°52'20" East 5.15 feet; thence South 08°07'40" West 25.65 feet; thence South 17 81°52'20" East 84.12 feet; thence South 07°11 143 11 West 16.38 feet; thence South 18 81°52'20" East 48.63 feet; thence North 08°07'40" East 71.53 feet; thence South 19 81°52'20" East 137.84 feet; thence South 08°05'41 11 West 53.41 feet; thence North 20 81°58'34" West 26.06 feet; thence South 02°29'04" West 28.68 feet; thence North 21 87°30' 56" West 183 .54 feet to the beginning of a curve concave southerly having a radius 22 of 5034.00 feet; thence westerly along said curve 110.33 feet through a central angle of 23 01°15'21 ";thence North 40°08'25" West 22.54 feet to the True Point of Beginning. 24 25 Containing 21,820 square feet. 26 27 See Exhibit 'H2' attached hereto and made a part hereof. 28 29 The distances described herein are grid distances and are based on California Coordinate 30 System of 1983, Zone 6, 2007.00 epoch. Ground distances may be obtainM by dividing 31 P.\2PTGOIOSOl\SURVEV\LEGALS\22178. APN 118-160..()71\Lcgals\22178-8-TCEdoc 911812014 Exhibit A. Page 12 Page 1 of2 PSOMAS grid distances by the mean combination factor of the courses being described. The mean 2 combination factor for this conversion is 0.99997476. 3 4 5 6 7 Prepared under the direction of 8 9 IO 11 12 I 13 14 15 16 17 18 19 20 21 22 23 24 I 25 26 27 28 29 30 31 ~~ Brian E. Bullock, PLS 5260 Date P:\2PTGO I OSOl\SURVEY\LEGALS\22178 _APN_l 18-160-071\Legals'22178-8-TCE,doc 9/18/2014 Exhibit A, Page 13 Pagc2 of2 PARCEL# 22178-8 LINE TABLE Ll -N39°45'26''W L2 -N07° 5 7'35"E L3 -N07° 57'35"E L4 -S81°52'20"E LS -S08°04'48"W '° ,Q J C\J """ lD 0 J '° I "' ""' ...... 0 r--0 IV) -l "' IV) t'..J I n... ~ ITi c:o -, -Q'. 2: ? n... Most W' I Cor. l"'~I -P-:-M.B. 1 56/48-49 33.98' 34.52' 77 .60' 56.55' 10.00' EXHIBIT H2 TITLE AREA TCE 21 820 SF LINE TABLE L6 -581°52'20"E L 7 -S08°07'40"W LB -S81°52'20"E 1118-160-0851 APN 118-160-071 LINE TABLE L9 -S07°11'43"W 5.1 5 , L10 -S81°52'20"E 25.65' L 11 -N08°07'40"E 84 ·12 ' L12 -S81°52'20"E L 1 3 -508° 05 '41 "W PCL J3 I I PCL 14 1118-160-0531 PCL JS ""' 581°58'33"[ 447.15' PCL J P.M.. 23870 P.M.B .. J5b/48-49 DOC .. NO .. 200.t}-O J 36042 O .. R .. LO-f E POMONA ROAD EXISTING R/W ,-1 L 12 : r--------, I I I I L13 I I I I I ~-----1 r- 0 -l t'..J n... ' n 0 CJ') co 0 _] I") t'..J n... 3:: v I/) O' ROUTE 91 RIVERSIDE FREEWAY 2 3 9 270 LINE TABLE 16.38' 4 8.63' 71.53' 137.84' 53.41' IO IO c I c IO I 0 c:o -.... ff) co IO O' O' IO 0 ...... 0 I l\l '° 0 j'f) IO I , c:o 2: , , tQ - , n... B LEGEND (R) Indicates Radial Bearing POB Point of Beginning TPOB True Point of Beginning c===J Title to State RADIAL TABLE R1 -N02° 32'27"E R2 -N01°13'43"E CURVE TABLE L14 -N81°58'34 11 W L15 -S02°29'04"W L16 -N87°30'56"W L17 -N40°08'25"W L 18 -N83°56'15"W 26.06' 28.68' 183,54 I 22.54' 105.66' 1 1 1 1 1 Access Prohibited NOTES Coordinates and bearings ore on CCS 1983(2007 .OO) Zone 6. Distances and stationing ore grid distances. Divide by 0.99997476 to obtain ground distances. All distances ore in feet unless otherwise noted. Cl -A=03°31'17" R=S,153.00' L=316.71' C2 -A=01°15'21" R=5,034.00' L=110.33' 22178-8 TEMPORARY CONSTRUCTION EASEMENT FEET O 50 100 200 300 PREPARED BY: DATE: 9-18-14 REV.: EA: OF5410 FA#: PSOMAS DISTRICT COUNTY ROUTE SHEET PM SHEET NO. TOTAL SHEETS B RIV 91 5.2 1 Exhibit A, Page 14 ; i i 2 3 PSOMAS EXHIBIT '11' LEGAL DESCRIPTION 4 Caltrans Parcel No. 22178-9 5 Temporary Access Easement 6 APN 118-160-071 7 8 In the City of Corona, Cowity of Riverside, State of California, being a portion of Parcel 9 1 of Parcel Map No. 23870 as per map filed in Book 156, Pages 48 and 49 of Parcel 10 Maps, Records of Riverside County, Califomia, described as follows: ll 12 Beginning at the most westerly comer of said Parcel 1; thence North 07°57'35" East 13 112.13 feet along a portion of the westerly line of said parcel to a point thereon; thence 14 South 81°52'20" East 36.54 feet to the True Point of Beginning; thence North 07°46'49" 15 East 168.31 feet; thence North 81°58'33" West 36.01 feet to a point on said westerly line; 16 thence North 07°57'35" East 30.00 feet along last said line to the northwesterly corner of 17 said parcel; thence South 81°58'33" East 55.92 feet along the northerly line of said parcel 18 to a point thereon; thence South 07°46'49" West 24.88 feet; thence South 07°16'39" West 19 47.88 feet; thence South 07°44'14" West 62.96 feet; thence South 08°11'52" West 62.64 20 feet; thence North 81°52'20" West 20.01 feet to the True Point of Beginning. 21 22 Containing 5,099 square feet 23 24 See Exhibit '12' attached hereto and made a part hereof. 25 26 The distances described herein are grid distances and are based on California Coordinate 27 System of 1983, Zone 6, 2007.00 epoch. Growid distances may be obtained by dividing 28 grid distances by the mean combination factor of the courses being described. The mean 29 combination factor for this conversion is 0.99997476. 30 31 P:\2PTGOIOSOllSURVEY\LEGALS\22178_APN. 118-160--071\Legals\22178-9-TAE doc 9118/2014 Exhibit A, Page 15 Pagel of2 PSOMAS 2 3 I Prepared under the direction of 4 5 6 7 Brian E. Bullock, PLS 5260 8 9 IO 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 Date P \2PTGO JOSOJ\SURVEY\LEGALS\2217B_APN_l IB-160-071\Legals\22178-9-TAE.doc 911812014 Exhibit A, Page 16 Page2of2 EXHIBIT 12 PARCEL:tt TITLE AREA APN 22178-9 TAE 5,099 SF 118-160-071 LINE TABLE L 1 -N39° 45'26"W L2 -N07° 57'35"E L3 -S81°52'20"E L4 -N07°46'49"E L5 -N81°58'33"W L6 LU ~ <: LU . '° > 0 ,o <:t .- J t"l (\J ..... 1.f) 68' c I '° I "' r---"' <: c r---.2 <:t ,..., -1 " ,..., l.) ~ I a.. i ill 0::: co Lu ... ::r: ~~ 0 • l/)~ b a.. z }-.a <-l Most W' I Cor. t-'~ll­ -P:M.B. 156/48-49 33.98' 112.13' 36.54' 168.31 f 36.01' PDL 13 1118-160-085 I 22178-9 LINE TABLE L6 -N07° 57'35"E L7 -S81°58'33"E LB -S07°46'49"W PCL 14 111 a-160-osJ I PCL JS 447.15' PCL J P .. NL 23870 PJM .. 8 .. 156/48-49 DOC .. NO .. 2004-0J3b042 O .. R .. ,~ r--------, I I I I I I I I ----~1 ___ j I r- LOI B POMONA ROAD EXISTING R/W7 0 ROUTE 91 RIVERSIDE FREEWAY 8 9 270 LEGEND Indicates Radial Bearing Point of Beginning 2 3 LINE TABLE RADIAL TABLE R1 -N02°32'27"E 30.00' 55.92' 24. 88' ,... -I 0 a.. ' ~ 0 to . ~ 0 _J ,.,.., l.) a.. LO LO c I Q U) I a ~ .... .... I Q) 47.88' 62.96' 62.64' 20,01 I (Rl POB TPOB True Point of Beginning Title to State L9 -S07°16'39"W L10 -S07°44'14"W L11 -S08°11'52"W L 12 -NB 1°52'20"W L 13 -N83°56'15"W 105.66' c:::::> II I II Access Prohibited NOTES Coordinates and bearings ore on CCS 1983(2007 .00) Zone 6. Distances and stationing are grid distances. Divide by 0.99997476 to obtain ground distances. Al I distances ore in feet unless otherwise noted. CURVE TABLE C1 -!1=3°31 '17" R=S, 153.00' L=316. 71' 22178-9 TEMPORARY ACCESS EASEMENT FEET 0 50 100 200 300 PREPARED BY: DATE: 9-18-1'4 REV.: EA: OF540 FA#: PSOMAS DISTRICT COUNTY ROUTE SHEET PM SHEET NO. TOTAL SHEETS 8 RIV 91 5.2 Exhibit A, Page 17 2 3 PSOMAS EXHIBIT 'Jl' LEGAL DESCRIPTION 4 Caltrans Parcel No. 22178-10 5 Building Demolition Easement 6 APN 118-160-071 7 8 In the City of Corona, County of Riverside, State of California, being a portion of Parcel 9 1 of Parcel Map No. 23870 as per map filed in Book 156, Pages 48 and 49 of Parcel 10 Maps, Records of Riverside County, California, described as follows: 11 12 Beginning at the most westerly corner of said Parcel I; thence North 07°57'35" East 13 112.13 feet along a portion of the westerly line of said parcel to a point thereon; thence 14 South 81°52'20" East 56.55 feet; thence South 08°04'48" West 10.00 feet; thence South 15 81°52'20" East 5.15 feet to the True Point of Beginning; thence South 81°52'20" East 16 83.70 feet; thence North 07°11'43" East 29.50 feet; thence South 81°52'20" East 49.79 17 feet; thence South 08°07'40" West 71.53 feet; thence North 81°52'20" West 48.63 feet; 18 thence North 07°11 '43" East 16.38 feet; thence North 81°52'20" West 84.12 feet; thence 19 North 08°07'40" East 25.65 feet to the True Point of Beginning. 20 21 Containing 5,672 square feet 22 23 See Exhibit 'J2' attached hereto and made a part hereof. 24 25 The distances described herein are grid distances and are based on California Coordinate 26 System of 1983, Zone 6, 2007.00 epoch. Ground distances may be obtained by dividing 27 grid distances by the mean combination factor of the courses being described. The mean 28 combination factor for this conversion is 0.99997476. 29 30 31 P:\2PTG0105011SURVEY\LEGALS\22 I 78 _APN.118-160·071\Legals\22178-10-SDE.doc 9/1812014 Exhibit A, Page 18 Page I of2 PSOMAS 2 Prepared under the direction of 3 4 ' 5 ~~ f../A·L# 6 Brian E. Bullock, PLS 5260 Date 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 P\2PTGOIOSOl\SURVEY\LEC 9/1812014 Exhibit A. Page 19 EXHIBIT J2 PARCEL# TITLE AREA APN 22178-10 BDE 5,672 SF 118-160-071 LINE TABLE LINE TABLE L1 -N39°45'26"W 33.98' LG SS 1°52 '20"E 83. 70' L2 -N07° 57'35"E 112.13' L7 -N07°11 '43"E 29.50' L3 -581°52'20"E 56.55' LB -581° 52 '20"E 49. 79' L4 S08°04'48''W 10.00' L9 -S08°07'40"W 71 .53' L5 -581 ° 52 '20"E 5.15' 1118-160-0851 I 111a-160-os3 I PCL J3 PCL J4 r--I PCL 15 I 581°58'33"E 447.15' -I I 0 lJ.J :::> --, ---------. n.. <: ' -., I PCL J r-... -. I lLJ I"") I P .. ~JL 23870 . I ' '° :::::.. 0 I I P.M.8 .. J5b/48-49 n .... o ~ I I 0 I"') I I . to J en C\J ...;-10 68' I I DOC .. NO • 0 I I -1 .... J .... o 200-'}-0 J 36042 I"") 0 I I D.R .. 0 I ;;j' r--" <: I I 22178-10 11 r--------, n.. 0 r--0 ~ I I I I f't) -1 ...;---i !LS I I I I f't) ~ t3 0 -----CL1 j I n.. ~ a:l 0:: co lJ.J , :r: , 2:: 0 O' n.. • V)~b -----1 tL. z \ r- 'I--r--1 .a <:-1 Most W' I Cor. Lo-r E POMONA ROAD 0 ' t'~I l- -p-;-M,B. 1 56/48-49 EXISTIN ROUTE 91 RIVERSIDE FREEWAY 8 (Rl POB TPOB c::=> II II I 9 270 LEGEND Indicates Radial Bearing Point of Beginning True Point of Beginning Title to State Access Prohibited NOTES oord1nates and bearings ore on CCS 1963(2007 .00) Zone 6. Distances and stationing ore grid distances. Divide by 0.99997476 to obtain ground distances. Al I distances ore in feet unless otherwise noted. RADIAL TABLE R1 -N02° 32'27"E CURYE TABLE LINE TABLE L10 -N81°52'20"W L 11 -N07°11 '43"E L12 -N81°52'20"W L13 -N08°07'40"E L14 -N83°56'15"W Cl -6=3° 31 '17" R=5, 1 53.00' L=316. 71 I 22178-10 BUILDING DEMOLITION EASEMENT FEET 0 50 100 200 300 PREPARED BY: DATE: 9-18-14 REV.: EA: OF540 F All:: LO LO 0 I 0 \0 -I 0 co -- ff) to Cl' Cl' 0 " C\l .....0 ff) -I co - • n.. 48.63' 16.38' 84 .12' 25.65' 105.66' PSOMAS DISTRICT COUNTY ROUTE SHEET PM SHEET NO. TOTAL SHEETS 8 RIV 91 5.2 Exhibit A, Page 20 2 3 PSOMAS EXHIBIT 'Kl' LEGAL DESCRIPTION 4 Caltrans Parcel No. 22178-11 5 Temporary Erosion Control Easements 6 APN 118-160-071 7 8 In the City of Corona, County of Riverside, State of California, being a portion of Parcel 9 1 of Parcel Map No. 23870 as per map filed in Book 156, Pages 48 and 49 of Parcel 10 Maps, Records of Riverside County, California, described as follows: 11 12 Parcel 1 13 14 Beginning at the most westerly corner of said Parcel 1; thence North 07°57'35" East 15 112.13 feet along a portion of the westerly line of said parcel to a point thereon; thence 16 South 81°52'20" East 36.54 feet; thence North 07°46'49" East 24.02 feet to the True 17 Point of Beginning; thence North 82°13'1l"West18.09 feet; thence North 07°34'05" 18 East 10.00 feet; thence South 82°13'11" East 18.13 feet; thence South 07°46'49" West I 9 10.00 feet to the True Point of Beginning. 20 21 Containing 181 square feet. 22 23 Parcel 2 24 25 Beginning at the most westerly comer of said Parcel 1; thence North 07°57'35" East 26 112.13 feet along a portion of the westerly line of said parcel to a point thereon; thence 27 South 81°52'20" East 36.54 feet; thence North 07°46'49" East 146.94 feet to the True 28 Point of Beginning; thence North 82°13'11" West 20.01 feet; thence North 07°46'49" 29 East 10.00 feet; thence South 82°13'1l"East20.01 feet; thence South 07°46'49" West 30 10.00 feet to the True Point of Beginning. 31 P:\2PTGOI0501\SURVEY\LEGALS\22178_APN_I18-160-071\Legals\22178-11-TECE.doc 9/1812014 Exhibit A, Page 21 Page I of2 PSOMAS Containing 200 square feet. 2 3 · Parcell 4 5 . Beginning at the most westerly corner of said Parcel 1; thence North 07°57'35" East 6 112.13 feet along a portion of the westerly line of said parcel to a point thereon; thence 7 South 81°52'20" East 56.55 feet; thence South 08°04'48" West 10.00 feet; thence South 8 81°52'20" East 88.86 feet; thence North 07°11 '43" East 29.50 feet; thence South 9 81°52'20" East 156.96 feet to the True Point of Beginning; thence North 08°07'40" East 10 42.86 feet; thence South 81°52'20" East 10.00 feet; thence South 08°07'40" West 42.86 11 I feet; thence North 81°52'20" West 10.00 feet to the True Point of Beginning. 12 13 Containing 429 square feet. 14 15 See Exhibit 'K.2' attached hereto and made a part hereof. 16 17 · The distances described herein are grid distances and are based on California Coordinate 18 System of 1983, Zone 6, 2007.00 epoch. Ground distances may be obtained by dividing 19 grid distances by the mean combination factor of the courses being described. The mean 20 combination factor for this conversion is 0.99997476. 21 22 23 ! 24 25 Prepared under the direction of 26 27 28 29 30 31 $.~ f,.td-ltf= Brian E. Bullock, PLS 5260 Date P .\2PTGO IOSOl\SURVEY\LEGALS\22178_APN_l 18-160-071 \Legals\22178-11-TECE.doc 9/1111.2014 Exhibit A, Page 22 Page 2 of2 EXHIBIT K2 PARCEL# TITLE AREA APN 22178-11 PCL TECE 181 SF 118-160-071 22178-11 PCL 2 TECE 200 SF 118-160-071 22178-11 PCL 3 TECE 429 SF 118-160-071 1118-160-0851 P CL L3 I PCL J 4 I 68' 1118-160-0531 POL JS ]""-- 581°58'33"E ---------TPOB I 447.15' POL J -I 0 0.. PCL-2 l P .. M.. 23870 I 22178-11 PARCEL 2 P .. M .. 8 .. JSb/48-49 DOC .. NO .. 20D4-0J3b042 O .. R .. . l"1 0 ro . en 0 ~ TPOB : -1 n 0 L20 8 PCL-1 I L19 I I L4 I L 1 8 L15 ~-,----_!:.!.~~L 1 7 TPOB L3'L14 I PCL-3 L . R=5 1 53.00' , ~=03031'h" L=316.71 LO-f 8 POMONA ROAD R/W ROUTE 91 RIVERSIDE FREEWAY g 270 1 2 LINE TABLE -RADIAL TABLE N39°45'26"W 33.98' L1 L2 -N07°57'35"E 112.13' R1 -N02°32'27"E (R) POB TPOB ~ II II I LEGEND Indicates Radial Bearing Point of Beginning True Point of Beginning Title to State Access Prohibited L3 - L4 - LS - L6 - L7 - LS - L9 - L10 - L11 - L12 - 581°52'20"E 36.54' N07°46'49"E 24.02' NB2°1 3'11 "W 18.09' N07° 34 '05"E 10.00' 582°13'11 "E 18.13' S07° 46' 49"W 10.00' N07° 46' 49"E 146.94' N82°13'11 "W 20.01. N07°46'49"E 10.00' S82°13'11 "E 20.01. 0.. 3 4 LINE TABLE L13 S07°46'49"W - L14 -581°52'20"E L15 -S08°04'48"W L16 -581°52'20"E L17 -N07°11 '43"E L18 -S81 ° 52 '20"E L19 -N08°07'40"E L20 -S81 ° 52 '20"E L21 -508°07'40"W L22 -N81°52 '20"W L23 N83° 56 '1 S"W - NOTES Coordinates ond bearings ore on ccs 1983(2007 .ooJ Zone 6. Distances ond stationing ore grid distances. Divide by 0.99997476 to obtain ground distances. Al 1 distances ore in feet unless otherwise noted. 22178-11 TEMPORARY £ROS/ON CONTROL EASEMENTS FEET 0 50 100 200 300 PREPARED BY: DATE: 9-18-14 REV,: EA: OF540 FA#: LO LO 0 I 0 t.O I 0 ~ I co 10.00' 56.55' 1 o.oo· 88.86' 29.50' 156.96' 42.86' 10.00' 42.86' 10.00' 105.66 1 PSOMAS DISTRICT COUNTY ROUTE SHEET PM SHEET NO. TOTAL SHEETS 8 RIV 91 5.2 Exhibit A, Page 23 PROOF OF MAILING NOTICE I, Margaret L. Barnes, acting on behalf of the Riverside County Transportation Commission, hereby certify that on NovemberJ.1.:o/2014, I mailed a copy of the attached notice by first-class mail to the following owner of real property located in the County of Riverside, State of California, more particularly described as Assessor Parcel No. 118-160-071 (CPNs 22178-6, 22178-7, 22178 -8, 22178-9, 22178-10 and 22178-11): Z Corona Properties, LLC Record Owner 1195 Pomona Road Corona, CA 92882 Z Corona Properties, LLC Record Owner 124 7 Pomona Road Corona, CA 92882 Z Corona Properties, LLC Record Owner 21650 Waterford Drive Yorba Linda, CA 92887 Michael Leifer, Esq. Courtesy Copy Palmieri, Tyler, Wiener, Wilhelm & Waldron LLP 2603 Main Street, Suite 1300 Irvine, CA 92614-4281 DATED: November,Z1!fo14. Margaret L. Barnes 17336 .02100\9417838 .I NEWMEYER DILLION LLP RIVERSIDE COJJNTY TRANSPORTATION OOMMISSION ATTORNEYS AT LAW CHARLES S. KROLIKOWSKI Charles.Krolikowski@ndlf.com December 3, 2014 VIA OVERNIGHT DELIVERY AND FACSIMILE Jennifer Harmon Clerk of the Board Riverside County Transportation Commission 4080 Lemon Street, 3rd Floor Riverside, CA 92501 Fax: (951) 787-7920 File No.: 896.120 Re: Objections to Adoption of Resolution of Necessity to Acquire Real Property by Eminent Domain (Assessor Parcel No. 118-330-017) Dear Ms. Harmon: This office represents EI-Corona, LLC ("EI-Corona"), who is the owner of the real property located at 1351 Pomona Road, Corona, California (Assessor Parcel No. 118-330-017) ("Property"). We have received notice that on Wednesday, December 10, 2014, at 9:30 a.m., the Riverside County Transportation Commission will hold a hearing to adopt a Resolution of Necessity ("Resolution") affecting the Property. The Resolution would authorize the acquisition of additional property rights for the purposes of the SR-91 Corridor Improvement Project in Riverside County, California. The purpose of this letter is to submit written objections on behalf EI-Corona to the notice and adoption of the Resolution. We request that this letter be included as part of the formal record on this agenda item in lieu of our personal appearance. EI-Corona objects to the notice and adoption of the Resolution on each of the following grounds: 1. The Notice of Hearing Is Defective As It Does Not Comply With the Requirements of Code of Civil Procedure Section 1245.210 et seq. Pursuant to California Code of Civil Procedure sections 1245.230 and 1245.235, the Riverside County Transportation Commission ("RCTC") must provide proper notice of the Resolution, and the notice must describe the general location and the extent of the property to be taken. A public entity may not commence an eminent domain proceeding without meeting the requirements of section 1245.210 et seq. (Code Civ. Proc.,§ 1245.220.) The Notice of Hearing ("Notice") does not comply with these requirements, and therefore RCTC cannot move forward with the adoption of the Resolution. 895 DOVE STREET 1211 TREAT BLVD. 5TH FLOOR SUITE 600 NEWPORT BEACH, CA 92660 WALNUT CREEK, CA 94597 T 949 854 7000 T 925 988 3200 F 949 854 7099 F 925 988 3290 Jennifer Harmon December 3, 2014 Page 2 The Notice provides that the property to be taken consists of a Fire Service Connection Easement ("FSCE"). The sole attachment provides the legal description for the FSCE. No other property interests are described. The Notice is defective because RCTC's additional interests in a Temporary Access Easement ("TAE") and "Temporary Erosion Control Easement" ("TECE"), previously identified by RCTC, are not included. Therefore, the Notice is defective as it fails to apprise El-Corona or anyone of the extent of the additional property rights RCTC seeks to take in this action. 2. The Offer Pursuant to Government Code Section 7267.2 is Defective. As set forth above, the additional T AE and TECE interests previously identified by RCTC are not identified in the Resolution. Regardless, Government Code section 7267.2 requires a public entity to make an offer of compensation based upon the rights it seeks to acquire. Here, the offer only pertained to the taking of additional interests relates to the FSCE, not the acquisition of a T AE and TECE. Therefore, to the extent RCTC seeks to acquire additional interests relating to a T AE and/or TECE, RCTC has failed to comply with the mandatory elements of adopting the Resolution as set forth in Code of Civil Procedure section 1245.230, subdivision (a)( 4). 3. RCTC Failed to Make Reasonable Efforts to Acquire the Property Without the Need for Litigation. Government Code section 7267 .1 requires RCTC to make reasonable efforts to acquire real property expeditiously through negotiation, not condemnation. To date, RCTC has failed to make reasonable efforts to negotiate with EI-Corona to acquire its interests in the Property. This inflexibility with respect to the offer of compensation is akin to unreasonable pre-condemnation conduct. (Ti/em v. City of Los Angeles (1983) 142 Cal.App.3d 694, 705 [191 Cal.Rptr. 229] [statutory directives of Government Code section 7267 et seq. provide a ready guide for determining whether a public agency has engaged in unreasonable or oppressive pre- condemnation conduct].) 4. An Offer Sufficient to Comply with Government Code§ 7267.2 has Not Been Made to EI-Corona. Government Code section 7267.2 requires RCTC to make a legitimate offer of compensation pursuant to an approved appraisal before initiating eminent domain proceedings. RCTC has failed to make a legitimate precondemnation offer to EI-Corona. The substantial duration of the Project and its impacts to the Property and business have not been adequately analyzed by RCTC and/or its real estate appraiser in assessing just compensation. Specifically, RCTC has failed to properly assess severance damages to the remainder parcel and/or business goodwill losses to 91 Express, Inc. that will necessarily result from the takings and Project. Jennifer Hannon December 3, 2014 Page 3 5. The Project Is Not Planned or Located in a Manner That Will be Most Compatible with the Greatest Public Good and the Least Private Injury. The Project is not compatible with the greatest public good because it will negatively impact, among other things, EI-Corona's use and enjoyment of the Property. There are less intrusive ways of constructing the Project. The Project, therefore, is not planned in a manner that will cause the least private injury. 6. The Public Interest and Necessity Do Not Require the Proposed Project. The proposed improvements for the Project are not necessary since the current right-of- way alignment is satisfactory to accommodate existing and future traffic needs in the area. As such, the acquisition is not for a "public" purpose. 7. RCTC Is Incapable of Conducting a Fair, Legal, and Impartial Hearing on the Resolution. Due to its involvement in designing and ultimately constructing the Project, RCTC has already committed itself to the Project, and the adoption of the Resolution here would be a predetermined result. As such, any hearing by RCTC to allegedly "consider" the issues pertaining to the adoption of the Resolution would be a sham and thus, voidable by the court. Based upon the foregoing, EI-Corona respectfully requests that RCTC refuse to adopt the Resolution. Nothing in this letter should be construed as a waiver of any of EI-Corona's rights for purposes of objecting to the Resolution. Such rights are expressly reserved. Please do not hesitate to contact me if you have any questions or comments regarding these matters. Fok.. harles S. Krolikowski CSK:cml 4971988.l • • AGENDA ITEM SA • • • • RIVERSIDE COUNTY TRANSPORTATION COMMISSION DATE: December 10, 2014 TO: Riverside County Transportation Commission FROM: Jennifer Harmon, Office and Board Services Manager THROUGH: Anne Mayer, Executive Director SUBJECT: Resolution to Amend the Appendix of the Conflict of Interest Code STAFF RECOMMENDATION: This item is for the Commission to adopt Resolution No. 14-033, "Resolution of the Riverside County Transportation Commission Amending the Appendix of the Conflict of Interest Code Pursuant to the Political Reform Act of 1974". BACKGROUND INFORMATION: As required, the Riverside County Transportation Commission performs a biennial review of its Conflict of Interest Code (Code). For this year, there is a need to amend the appendix to include new positions, amended titles and positions, deletion of positions that have been abolished, and add clarifying language as provided by the Fair Political Practice Commission. The amended appendix shows the list of positions who manage public investments, and positions to be governed under the Code and their respective disclosure categories. A notice of intention to amend the appendix of the Code was publicly posted and provided to the affected designated employees. After the Commission adopts the amended appendix, it will be submitted to the Riverside County's Board of Supervisors for approval as it is the code-reviewing body for the Commission. In order to meet the requirements of the Code pursuant to the Political Reform Act of 1974, staff recommends that the Commission adopt Resolution No. 14-033 to make the appropriate changes to the Code. Attachments: 1) Resolution No. 14-033 2) Amended Appendix 3) Notice of Intention Agenda Item 8A 66 • ATTACHMENT 1 RESOLUTION NO. 14-033 RESOLUTION OF THE RIVERSIDE COUNTY TRANSPORTATION COMMISSION AMENDING THE CONFLICT OF INTEREST CODE PURSUANT TO THE POLITICAL REFORM ACT OF 1974 WHEREAS, the Legislature of the State of California enacted the Political Reform Act of 1974, Government Code Section 81000 et seq. (Act), which contains provisions relating to conflicts of interest which potentially affect all officers, employees and consultants of the Riverside County Transportation Commission (Commission) and requires all public agencies to adopt and promulgate a conflict of interest code; and WHEREAS, the Commission adopted a Conflict of Interest Code (Code), which was amended on December 8, 2010, in compliance with the Act; and WHEREAS, subsequent changed circumstances within the Commission have made it advisable and necessary pursuant to Sections 87306 and 87307 of the Act to amend and update the Commission's Code; and WHEREAS, the potential penalties for violation of the provisions of the Act are substantial and may include criminal and civil liability, as well as equitable relief which could result in the Commission being restrained or prevented from acting in cases where the • provisions of the Act may have been violated; and • WHEREAS, notice of the time and place of a public meeting on, and of consideration by the Commission of, the proposed amended Code was provided each affected designated employee and publicly posted for review at the offices of the Commission; and WHEREAS, a public meeting was held upon the proposed amended Code at a regular meeting of the Members of the Board of the Commission on December 10, 2014, at which all present were given an opportunity to be heard on the proposed amended Code. NOW, THEREFORE, BE IT RESOLVED by the Members of the Board of the Commission of the Riverside County Transportation Commission that the Members of the Board of the Commission do hereby adopt the proposed amended Conflict of Interest Code, a copy of which is attached hereto and shall be on file with the Clerk of the Board and available to the public for inspection and copying; BE IT FURTHER RESOLVED that the said amended Code shall be submitted to the Board of Supervisors of the County of Riverside for approval and said Code shall become effective upon approval by the Board of Supervisors . 67 APPROVED AND ADOPTED this 101h day of December, 2014. ATIEST: Jennifer Harmon, Clerk of the Board Riverside County Transportation Commission 68 Marion Ashley, Chair Riverside County Transportation Commission • • • • ATTACHMENT 2 CONFLICT OF INTEREST CODE FOR THE RIVERSIDE COUNTY TRANSPORTATION COMMISSION (Amended December 8, 201010, 2014) The Political Reform Act (Gov. Code§ 81000, et seq.) requires state and local government agencies to adopt and promulgate conflict of interest codes. The Fair Political Practices Commission has adopted a regulation (2 Cal. Code of Regs. § 18730) which contains the terms of a standard conflict of interest code, which can be incorporated by reference in an agency's code. After public notice and hearing it may be amended by the Fair Political Practices Commission to conform to amendments in the Political Reform Act. Therefore, the terms of 2 California Code of Regulations • section 18730 and any amendments to it duly adopted by the Fair Political Practices Commission are hereby incorporated by reference. This regulation and the attached Appendix designating officials and employees positions and establishing disclosure categories, shall constitute the conflict of interest code of the Riverside County Transportation Commission (the "Commission"). • All officials and designated employees positions required to submit a statement of economic interests shall file their statements with the Clerk of the Board as the Commission's Filing Officer. The Filing OfficerClerk of the Board shall make and retain a copy of all statements filed by Members of the Board of the Commission and the Executive Director, and forward the originals of such statements to the Clerk of the Board of Supervisors of the County of Riverside. The Filing Officer Commission's Clerk of the Board shall retain the originals of the statements filed by all other officials and designated employees positions and make all statements available for public inspection and reproduction during regular business hours. (Gov. Code§ 81008.) 117336.00019\9440232.2 -1-BEK -December-±G-l-02014 69 • APPENDIX CONFLICT OF INTEREST CODE OF THE RIVERSIDE COUNTY TRANSPORTATION COMMISSION (Amended December 8, 201010, 2014) EXHIBIT PART "A" OFFICIALS WHO MANAGE PUBLIC INVESTMENTS Commission Officials who manage public investments, as defined by 2 Cal. Code of Regs. § 18701(b), are NOT subject to the Commission's Code, but ar:e • subiect to the disclosure requirements of the Act. (must file disclosure statements under Government Code Section 87200 et seq.f [Regs. § 18730(b )(3)] These positions are listed here for informational purposes only. It has been determined that the positions listed below are officials who manage public investments 1 : Members of the Board of the Commission and their Alternates Executive Director Deputy Executive Director Chief Financial Officer Financial Consultants Individuals holding one of the above-listed positions may contact the FPPC Fair Political Practices Commission for assistance or written advice regarding their filing obligations if they • believe that their position has been categorized incorrectly. The ~Fair Political Practices Commission makes the final determination whether a position is covered by§ 87200. 117336.0001919440232.2 App.-1-BEK-December ±G-W2014 70 • • • DESIGNATED POSITIONS GOVERNED BY THE CONFLICT OF INTEREST CODE DESIGNATED EMPLOYEES'POSITIONS' TITLE OR FUNCTION Accounting and Human Resources Manager Capital Projects Manager Community Relations Manager Commuter/Motorist Assistance Manager Facilities Administrator Finance Manager/Controller General Counsel Goods Movement Manager Government Relations Manager Human Resources Administrator Multimodal Services Director Office and Board Services Manager Planning and Programming Director Procurement and Assets Analyst Procurement and Assets Manager Programming and Planning Manager Project Delivery Director Project Development Director 117336.00019\9440232 .2 App.-2- 71 DISCLOSURE CATEGORIES ASSIGNED 5 1, 2 5 5 1 2 5 1, 2 5 1 4 2, 3,5 2,4 2, 3, 5 1, 2 1, 2 2, 5, 6 1, 2 1, 2 BEK-December ~2014 DESIGNATED POSITIONS' TITLE OR FUNCTION Rail Manager Right of Way Manager Senior Administrative Assistant, Administration Staff Analyst -Multimodal Services (ALL) Staff Analyst -Programming (ALL) Staff Analyst -Rail (ALL) Staff Analyst -Right of Way (ALL) Toll Program Director Toll Project Manager Transit Manager Consultant and New Positions 2 DISCLOSURE CATEGORIES ASSIGNED 1, 2 1, 2 5 2, 3, 5 5 1, 2 1, 2 2, 3, 5 2, 3,5 2, 3, 5 2 Consultants shall be included in the list of Designated Employees and shall disclose pursuant to Individuals serving as a consultant as defined in FPPC Reg 18701 or in a new position created since this Code was last approved that makes or participates in making decisions must file under the broadest disclosure category in this Code subject to the following limitation: The Executive Director may determine in writing that a particular consultant, although a "designated position," is hired to perf-orm a due to the range of duties that are limited in scope and thus is not required to fully comply with the or contractual obligations, it is more appropriate to assign a limited disclosure requirements requirement. described in this Section. Such 'Nritten determination shall include a description of the consultant'sA clear explanation of the duties and, based upon that description, a statement of the extent of disclosure requirements a statement of the extent of the disclosure requirements must be in a written document (Gov. Code Sec. 82019; • • FPPC Regulattons 18219 and 18734). The Executive Director's determination is a public record • and shall be retained for public inspection in the same manner and location as this Conflict of Interest Code (Gov. Code Sec. 81008). App.-3-BEK -December ±-0-1-02014 17336.00019\9440232.2 72 • • • LAW OFFICES OF Part "B" DISCLOSURE CATEGORIES The disclosure categories listed below identify the types of investments, business entities, sources of income, including gifts, loans and travel payments, or real property which the Designated Employee Position must disclose for each disclosure category to which he or she is assigned. 3 Such economic interests are reportable if they are either located in or doing business in the jurisdiction, are planning to do business in the jurisdiction. or have done business during the previous two years in the jurisdiction of the Commission. Category 1: All investments and business positions and sources of income, including gifts, loans and travel payments, that are located in, do business in, or own real property within the jurisdiction of the Commission. Category 2: All interests in real property which is located in whole or in part within, or not more than two (2) miles outside, the jurisdiction of the Commission. Category 3: All investments and business positions and sources of income, including gifts, loans and travel payments, that are engaged in land development, construction or the acquisition or sale of real property within the jurisdiction of the Commission . Cateqory 4: All investments and business positions and sources of income, including gifts, loans and travel payments, that provide services, supplies, materials, machinery, vehicles or equipment of a type purchased or leased by the Commission. Cateqory 5: All investments and business positions and sources of income, including gifts, loans and travel payments, that provide services, supplies, materials, machinery, vehicles or equipment of a type purchased or leased by the Designated Employee's Position's department, unit or division. Category 6: All investments and business positions and sources of income, including gifts, loans and travel payments, subject to the regulatory, permit, or licensing authority of the Designated Employee's Position's department, unit or division. 3 This Conflict of Interest Code does not require the reporting of gifts from outside this agency's jurisdiction if the source does not have some connection with or bearing upon the functions or duties of the position. (Reg. 18730.1) 117336.00019\9440232.2 Aw~--1-BEK-December ;ww2014 73 • • • ATTACHMENT 3 NOTICE OF INTENTION TO AMEND THE CONFLICT OF INTEREST CODE OF THE RIVERSIDE COUNTY TRANSPORTATION COMMISSION NOTICE IS HEREBY GIVEN that the Riverside County Transportation Commission (the "Commission") intends to amend its Conflict of Interest Code (the "Code") pursuant to Government Code Section 87306. The Appendix of the Code designates those positions, members, officers, and consultants who make or participate in the making of decisions and are subject to the disclosure requirements of the Commission's Code. The Commission's proposed amendments include new positions that must be designated, amended positions and titles, deletion of abolished positions, and clarifying language as provided by the FPPC . The proposed amended Code will be considered by the Board of Commissioners on December 10, 2014, at 9:30 a.m. at Riverside County Board Room, 4080 Lemon Street, Riverside, California. Any interested person may be present and comment at the public meeting or may submit written comments . concerning the proposed amendment. Any comments or inquiries should be directed to the attention of Jennifer Harmon, Clerk of the Board, Riverside County Transportation Commission, 4080 Lemon Street, 3rd Floor, Riverside, CA 92501; (951) 787-7141. Written comments must be submitted no later than December 10, 2014, at 9:30 a.m. The proposed amended Code may be reviewed at, and copies obtained from, the office of the Clerk of the Board . 74 • • • • AGENDA ITEM 88 • • • • • • • • RIVERSIDE COUNTY TRANSPORTATION COMMISSION DATE: December 10, 2014 TO: Riverside County Transportation Commission FROM: Jennifer Harmon, Office and Board Services Manager THROUGH: Anne Mayer, Executive Director SUBJECT: Proposed 2015 Commission/Committee Meeting Calendar STAFF RECOMMENDATION: This item is for the Commission to adopt its 2015 Commission/Committee Meeting Calendar. BACKGROUND INFORMATION: The Commission is scheduled to meet on the second Wednesday of each month at 9:30 a.m. The Executive Committee is scheduled at 9:00 a.m. on the same day. For 2015, the annual Commission Workshop will be held on Thursday, January 29 and Friday, January 30 at the Hyatt Palm Springs. 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. Additionally, the November Commission meeting falls on a holiday. Therefore, staff is working to identify a location to hold the Commission meeting on either Tuesday, November 10 or Thursday, November 12. Staff will send a revised schedule to the Commissioners once a date and location are determined. 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 2015, 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 2015 Commission/Committee Meetings Schedule Agenda Item SB 75 • • • • • • RIVERSIDE COUNTY TRANSPORTATION COMMISSION 2015 MEETING SCHEDULE Meeting Date Commission Location Executive Location (Wednesday) Committee January 14 9:30 a.m. Board Room 9:00 a.m. RCTC Conf Rm A January 29 -30 1:00 p.m. (Thursday) Hyatt Palm Springs N/A N/A Meeting I Workshop 8:30 a.m. (Friday) February 11 9:30 a.m. Board Room 9:00 a.m. RCTC Conf Rm A March 11 9:30 a.m. Board Room 9:00 a.m. RCTC Conf Rm A April 8 9:30 a.m. Board Room 9:00 a.m. RCTC Conf Rm A May 13 9:30 a.m. Board Room 9:00 a.m. RCTC Conf Rm A June 10 9:30 a.m. Board Room 9:00 a.m. RCTC Conf Rm A July 8 9:30 a.m. Board Room 9:00 a.m. RCTC Conf Rm A August 12 9:30 a.m. Board Room 9:00 a.m. RCTC Conf Rm A September 9 9:30 a.m. Board Room 9:00 a.m. RCTC Conf Rm A October 14 9:30 a.m. Board Room 9:00 a.m. RCTC Conf Rm A November 10 or 12 9:30 a.m. TBD 9:00 a.m. RCTC Conf Rm A December 9 9:30 a.m. Board Room 9:00 a.m. RCTC Conf Rm A The Commission and the Executive Committee meetings are held on the second Wednesday of each month. 2015 RCTC Meeting Schedule -Vl 76 Budget and Western Riverside Meeting Date (Monday) Implementation County Programs and Location Committee Projects Committee February 23 9:30 a.m. 1:30 p.m. Board Room March 23 9:30 a.m. 1:30 p.m. Board Room April 27 9:30 a.m. 1:30 p.m. Board Room June 22 9:30 a.m. 1:30 p.m. Board Room July 27 9:30 a.m. 1:30 p.m. Board Room August 24 9:30 a.m. 1:30 p.m. Board Room September 28 9:30 a.m. 1:30 p.m. Board Room October 26 9:30 a.m. 1:30 p.m. Board Room November 23 9:30 a.m. 1:30 p.m. Board Room The meetings of the Budget and Implementation Committee and the Western Riverside County Programs and Projects Committee are held on the fourth Monday of each month, except on holidays. 2015 RCTC Meeting Schedule -Vl • • • • • • Meeting Date (Monday) Eastern Riverside County Location Programs and Projects Committee January 5 10:30 a.m. February 2 10:30 a.m. March 2 10:30 a.m. April 6 10:30 a.m. CVAG Office May4 10:30 a.m. 73-710 Fred Waring Drive, Suite 119 June 1 10:30 a.m. Palm Desert, CA 92260 August 3 10:30 a.m. October 5 10:30 a.m. November 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. 2015 RCTC Meeting Schedule -Vl 78 Meeting Date (Monday) Technical Advisory Committee Location January 26 10:00 a.m. Riverside -RCTC Conf Rm A March 16 10:00 a.m. Beaumont -City Hall May 18 10:00 a.m. Riverside -RCTC Conf Rm A July 20 10:00 a.m. Beaumont -City Hall September 21 10:00 a.m. Riverside -RCTC Conf Rm A November 16 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, 4080 Beaumont -City Hall, Conference Room 2, Lemon Street, 3rd Floor, Riverside, CA 550 East Sixth Street, Beaumont, CA 2015 RCTC Meeting Schedule -Vl • 79 • • • AGENDA ITEM SC • • • • • REVISION TO AGENDA ITEM SC Additions are noted by Bold Italics, Deletions are noted by Stril~ethrot:Jgh RIVERSIDE COUNTY TRANSPORTATION COMMISSION DATE: December 10, 2014 TO: Riverside County Transportation Commission FROM: Jennifer Harmon, Office and Board Services Manager THROUGH: Anne Mayer, Executive Director SUBJECT: Upgrade of Records Management Software STAFF RECOMMENDATION: This item is for the Commission to: 1} Approve Agreement No. 14-12-062-01, Amendment No. 1 to Agreement No. 14-12-062-00, with CTG Inc. of Illinois dba Novanis for an upgrade of the Commission's records management software from LibertNET to Hyland OnBase in the amount of $121,340, plus a $12,160 contingency, and annual maintenance for a five year term in the amount of $120,000 for a total not to exceed $253,500; and 2) Authorize the Executive Director or Chair, pursuant to legal counsel review, to execute the agreement on behalf of the Commission. This items is for the Commission to approve the upgrade of the Commission's records management software from LibertyNET to l=lyland OnBase in the amount of $121,340, plus a $12,160 contingency, for a total amount not to e>ECeed $133,500. BACKGROUND INFORMATION: LibertyNET was implemented at the Commission in 2002 after a competitive procurement process. In 2007, LibertyNET was acquired by Hyland Software. During this timeframe, staff was offered, as part of the Bechtel Infrastructure contract, an opportunity to leverage its records management software, lnfoWorks. Staff began the process to implement lnfoWorks in 2008. Unfortunately, after considerable efforts, it was determined lnfoWorks was not an efficient solution for the Commission. Therefore, staff began its quest for a records management solution that fits the Commission's current and future needs. Hyland Software redesigned and enhanced LibertyNET, now called OnBase. Staff reviewed the OnBase software through a demonstration using Commission data from the LibertyNet system and determined its records management system will satisfy the Commission's current records management needs and allow for the expansion of the records program including mobile access and e-mail management. Key improvements will include improved searchability and findability, simplified e-mail archiving, robust reporting services, creation and management of legal holds, and automated retention policies. Agenda Item 8C I Hyland offered the Commission an upgrade purchase based on a renewal of the Commission's annual maintenance, which lapsed in 2008. A comparison was done analyzing the cost of procuring the On Base solution outright versus renewing the annual maintenance and no charge for the software. A standard purchase of OnBase would equal $174,000, whereas the cost of renewing annual maintenance to receive the same OnBase modules would cost $121,340. An additional value of the upgrade is the LibertyNET conversion tool that allows staff to bring all the documents from LibertyNET into OnBase. Under any other circumstances the Liberty tool costs $24,000. The Hyland upgrade offer includes this tool at no charge. The tool will also help convert documents from lnfoWorks into OnBase. Additionally, OnBase is approximately 25 percent lower in overall cost of software, implementation, and ongoing cost of ownership than its fellow Tier One Gartner Group vendors. Implementation services will be provided by the Commission's information technology (1.T.) services consultant, Novanis, under its current contract. No additional servers or other hardware will be required due to the Commission's approval in October to acquire computer network equipment that allows for growth of the Commission's l.T. infrastructure. The annual maintenance cost is estimated to be $24,000 per year, or a total of $120,000 for a five-year term. Financial Information Yes FY 2014/15 $ 65,000 In Fiscal Year Budget: No Year: FY 2014/15 Amount: $ 68,500 N/A FY 2015/16 $120,000 Measure A, LTF, Motorist Assistance, No Source of Funds: Budget Adjustment: Yes TUMF Administration Funds N/A GL/Project Accounting No.: 001001 73304 00000 000110112 73301 Fiscal Procedures Approved: ~~ I Date: I 12/9/14 Agenda Item 8C I • • • RIVERSIDE COUNTY TRANSPORTATION COMMISSION DATE: December 10, 2014 TO: Riverside County Transportation Commission FROM: Jennifer Harmon, Office and Board Services Manager THROUGH: Anne Mayer, Executive Director SUBJECT: Upgrade of Records Management Software STAFF RECOMMENDATION: This item is for the Commission to approve the upgrade of the Commission's records management software from LibertyNET to Hyland OnBase in the amount of $121,340, plus a $12,160 contingency, for a total amount not to exceed $133,500. BACKGROUND INFORMATION: LibertyNET was implemented at the Commission in 2002 after a competitive procurement process. In 2007, LibertyNET was acquired by Hyland Software. During this timeframe, staff was offered, as part of the Bechtel Infrastructure contract, an opportunity to leverage its records management software, lnfoWorks. Staff began the process to implement lnfoWorks in 2008. Unfortunately, after considerable efforts, it was determined lnfoWorks was not an efficient solution for the Commission. Therefore, staff began its quest for a records management solution that fits the Commission's current and future needs. Hyland Software redesigned and enhanced LibertyNET, now called OnBase. Staff reviewed the OnBase software through a demonstration using Commission data from the LibertyNet system and determined its records management system will satisfy the Commission's current records management needs and allow for the expansion of the records program including mobile access and e-mail management. Key improvements will include improved searchability and findability, simplified e-mail archiving, robust reporting services, creation and management of legal holds, and automated retention policies. Hyland offered the Commission an upgrade purchase based on a renewal of the Commission's annual maintenance, which lapsed in 2008. A comparison was done analyzing the cost of procuring the On Base solution outright versus renewing the annual maintenance and no charge for the software. A standard purchase of OnBase would equal $174,000, whereas the cost of renewing annual maintenance to receive the same OnBase modules would cost $121,340. An additional value of the upgrade is the LibertyNET conversion tool that allows staff to bring all the documents from LibertyNET into OnBase. Under any other circumstances the Liberty tool costs $24,000. The Hyland upgrade offer includes this tool at no charge. The tool will also help Agenda Item 8C 80 convert documents from lnfoWorks into OnBase. Additionally, OnBase is approximately 25 percent lower in overall cost of software, implementation, and ongoing cost of ownership than its fellow Tier One Gartner Group vendors. Implementation services will be provided by the Commission's information technology (l.T.) services consultant, Novanis, under its current contract. No additional servers or other hardware will be required due to the Commission's approval in October to acquire computer network equipment that allows for growth of the Commission's l.T. infrastructure. The annual maintenance cost is estimated to be $24,000 per year. Financial Information In Fiscal Year Budget: I Yes I Year: I FY 2014/15 Amount: I $65,000 No $68,500 Source of Funds: I Measure A, LTF, Motorist Assistance, Budget Adjustment: I No TUMF Administration Funds Yes GL/Project Accounting No.: 001001733040000000011011273301 Fiscal Procedures Approved: I Date: I Agenda Item 8C 81 • • • • AGENDA ITEM 80 • • • • • • • • RIVERSIDE COUNTY TRANSPORTATION COMMISSION DATE: December 10, 2014 TO: Riverside County Transportation Commission Audit Ad Hoc Committee FROM: Theresia Trevino, Chief Financial Officer Michele Cisneros, Finance Manager/Controller THROUGH: Anne Mayer, Executive Director SUBJECT: Fiscal Year 2013/14 Commission Audit Results AUDIT AD HOC COMMITTEE AND STAFF RECOMMENDATION: This item is for the Commission to: 1) Receive and file the Fiscal Year 2013/14 a) Comprehensive Annual Financial Report {CAFR); b) Local Transportation Fund (LTF) Financial and Compliance Report; c) State Transit Assistance (STA) Fund Financial and Compliance Report; d) Proposition 1B Rehabilitation and Security Project Accounts Financial and Compliance Report; e) Compliance Report for Single Audit; f) Commercial Paper Compliance Report; g) Auditor Required Communications Report; h) Agreed-Upon Procedures Report related to the Appropriations Limit Calculation; i) Agreed-Upon Procedures Report related to the Commuter Assistance Program incentives; and j) Management certifications. BACKGROUND INFORMA T/ON: In March 2008, McGladrey LLP (McGladrey) was selected to perform the annual audit of the Commission's basic financial statements included in the CAFR, LTF, 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 lB funds for commuter rail rehabilitation and security projects, a separate audit is required. The scope of work for McGladrey was subsequently expanded to include the Proposition 1B Rehabilitation and Security Projects audit. In connection with the recurring contracts process, McGladrey's term was extended from April 1, 2013, through December 31, 2014. The audits, agreed-upon procedures, and compliance procedures for the fiscal year ended June 30, 2014, have been completed and McGladrey has issued all reports . Agenda Item 80 82 The Commission's CAFR consists of three sections: introductory, financial, and statistical. While the introductory and statistical sections were not audited by McGladrey, the basic financial statements included in the financial section were audited by McGladrey. The Commission received an unmodified opinion on its basic financial statements from McGladrey, which is the highest form of assurance. Limited procedures were performed related to the required supplementary information, including Management's Discussion and Analysis; such information was not audited. The other supplementary information was subject to the auditing procedures applied in the audit of the basic financial statements, and in the opinion of the auditors, it is fairly stated in relation to the basic financial statements. The basic financial statements include government-wide financial statements, fund financial statements, and notes to the financial statements. 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 $554 million at June 30, 2014, representing a decrease of approximately $186 million from the prior year, and governmental funds fund balances of approximately $1.03 billion at June 30, 2014, representing an increase of approximately $409 million from the prior year. The following information provides a summary of significant matters related to the Commission's government-wide financial and/or fund financial statements for FY 2013/14: • • In July 2013 in connection with the State Route 91 Corridor Improvement Project {91 Project}, the Commission: o Recorded $462.2 million in sales tax revenue bonds at a premium of approximately $38.3 million to retire all, or $60 million, of the outstanding principal amount of commercial paper notes, fund a portion of the 91 Project, pay capitalized interest during construction, and pay costs of issuance; o Recorded $176.7 million in toll revenue serial current interest bonds and capital appreciation bonds at a discount of $2.4 million to fund a portion of the 91 Project, pay capitalized interest during construction, pay costs of issuance, fund a debt service reserve fund, and fund an initial amount for an operations and maintenance fund; and o Executed a Transportation Infrastructure Finance and Innovation Act (TIFIA} loan of up to $421.1 million, which proceeds, when drawn upon, will finance a portion of the costs of the 91 Project. The sales tax revenue bonds and the toll revenue bonds are recorded as a liability on the government-wide financial statements as of June 30, 2014, and as other financing sources on the fund financial statements for the year ended June 30, 2014. There were no TIFIA loan amounts outstanding at June 30, 2014. In March 2012, the Commission authorized a $24 million commitment to the Western Riverside County Regional Conservation Authority (RCA} to provide funding for its obligation to the Western Riverside County Multiple-Species Habitat Conservation Plan Agenda Item SD 83 • • • • • • • • (MSHCP). Under the terms of the agreement, the commitment will be paid over eight years at $3 million per year through December 2019. However, if within the first two years of the agreement, RCA received a federal loan guarantee related to the MSHCP or its revenues returned to 2005 levels, the Commission may modify the commitment. The Commission did not modify its commitment within the first two year period, and, accordingly the remaining liability of $18 million is recorded as a liability in the government-wide financial statements as of June 30, 2014. In connection with the acquisition of real property for the Mid County Parkway project in December 2013, the Commission is responsible for the cleanup of hazardous substances at the site under a voluntary cleanup agreement with the California Department of Toxic Substances Control. The Commission expects outlays related to this hazardous substance remediation to approximate $1.64 million, of which $65,594 was expended during FY 2013/14. The Commission recorded the remediation liability balance of $1.58 million in the government-wide financial statements as of June 30, 2014. Project costs that have been incurred for the tolled express lanes projects and are expected to remain the Commission's assets will be capitalized as intangible assets that will be amortized over the life of the service concession arrangement with Caltrans. These capitalizable costs have been accumulated in the capital assets as land and land improvements and construction in progress in the government-wide financial statements. The costs of the tolled express lanes projects that are not capitalized are expensed as incurred based on management's estimation, which is generally based upon the allocation of Measure A and other funding sources, including toll-supported debt. As of June 30, 2014, the estimated project costs incurred however, not capitalized related to the 91 Project is approximately 85 percent of right of way and 60 percent of engineering and construction costs, or approximately $80.3 million and $165.1 million, respectively. All costs related to the Interstate 15 Corridor Improvement Project (1-15 Express Lanes) are considered capitalizable. o Subsequent to June 30, 2013, the Commission changed its policy to capitalize project costs that are expected to remain the Commission's assets after the project is completed, resulting in an expense of $100.8 million of 91 Project costs during the year ended June 30, 2014, that were capitalized through June 30, 2013. The provisions made to estimate the noncapitalizable costs for the 91 Project reflect a change in accounting estimate during the year ended June 30, 2014. • The Commission invested the 91 Project bond proceeds in various debt securities. As a result, there are additional disclosures for cash and investments particularly related to interest rate risk and credit risk. The audit reports related to the separately issued financial statements of the LTF, STA, and Proposition lB Rehabilitation and Security Projects also reflect unmodified opinions from Agenda Item SD 84 McGladrey. These financial statements are required to be issued separately under the Transportation Development Act (TDA), including the provisions for Proposition lB Rehabilitation and Security Projects; however, the LTF and STA financial position and operations are included in the fund financial statements in the CAFR. The Proposition 1B Rehabilitation and Security Projects Accounts financial position and operations are part of the general and Measure A Western County Commuter Rail funds. 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 a material weakness in internal control, but an instance of noncompliance was reported related to noncompliance with the Davis-Bacon Act due to missing certified payroll reports from subcontractors on the Perris Valley Line construction project. 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 McGladrey indicated that nothing came to the auditor's attention that caused the auditors to believe 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, McGladrey 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 American Institute of Certified Public Accountants 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 Ad Hoc 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 2013/14 conducted by McGladrey was completed in October 2014. The report to the Audit Ad Hoc Committee from the auditor contains the required communications about the audit. Representatives from McGladrey 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: Agenda Item SD 85 • • • • 1} 2014 Comprehensive Annual Financial Report 2} 2014 Local Transportation Fund Financial and Compliance Report 3} 2014 State Transit Assistance Fund Financial and Compliance Report 4} 2014 Proposition 1B Rehabilitation and Security Projects Accounts Financial and Compliance Report 5} 2014 Compliance Report 6} 2014 Commercial Paper Compliance Report 7} 2014 Report to the Audit Ad Hoc Committee 8} 2014 Agreed-Upon Procedures Report on Appropriations Limit Calculation 9} 2014 Agreed-Upon Procedures Report on Commuter Assistance Program Incentives 10} 2014 Executive Director and Chief Financial Officer Certification 11} 2014 Director's Certification • • Agenda Item 80 86 • • • ATTACHMENT 1 e Riverside County Transportation Commission • • Riverside County, California Comprehensive Annual Financial Report Fiscal Year Ended June 30, 2014 Riverside County Transportation Commission 87 Riverside County Transportation Commission e Riverside County, California Comprehensive Annual Financial Report Fiscal Year Ended June 30, 2014 Submitted By: Theresia Trevino, Chief Financial Officer Michele Cisneros, Finance Manager/Controller 88 • • • • • Contents Introductory Section Letter of Transmittal Organizational Chart List of Principal Officials Certificate of Achievement 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 Balance Sheet-Governmental Funds Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Position Statement of Revenues, Expenditures and Changes in Fund Balances -Governmental Funds Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to the Statement of Activities Notes to Financial Statements Required Supplementary Information Budgetary Comparison Schedules General Fund Major Special Revenue Funds Schedule of Funding Progress for Postretirement Health Care Notes to Required Supplementary Information Other Supplementary Information Nonmajor Governmental Funds Combining Balance Sheet Combining Statement of Revenues, Expenditures and Changes in Fund Balances Schedule of Revenues, Expenditures and Changes in Fund Balances-Budget and Actual: Non major Special Revenue Funds Capital Projects and Debt Service Funds Schedule of Expenditures for Local Streets and Roads by Geographic Area-All Special Revenue Funds Schedule of Expenditures for Transit and Specialized Transportation by Geographic Area and Source-All Special Revenue Funds 89 i x xi xii 1 3 16 17 18 19 20 21 22 50 51 52 53 55 56 57 58 59 60 61 Contents, Continued Statistical Section Statistical Section Overview Net Position by Component Changes in Net Position Fund Balances of Governmental Funds Changes in Fund Balances of Governmental Funds 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 Measure A Revenues and Pledged Revenue Coverage Ratios of Outstanding Debt by Type Computation of Legal Debt Margin Demographic and Economic Statistics for the County of Riverside Employment Statistics by Industry for the County of Riverside Full-time Equivalent Employees by Function/Program Operating Indicators Capital Asset Statistics by Program 90 63 65 66 68 69 70 71 72 73 74 75 76 77 78 79 80 81 82 • • • • Introductory Section • • 91 • This page intentionally left blank. • • 92 • • • October 31, 2014 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 (GMP) 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, 2014. 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 LLP has issued an unmodified opinion on the Commission's financial statements for the year ended June 30, 2014. The independent auditor's report is located at the front of the financial section of this report. Management's Discussion and Analysis (MD&A) immediately follows the independent auditor's report and provides a narrative introduction, overview, and analysis of the basic financial statements. MD&A complement this letter of transmittal and should be read in conjunction with it. Profile of RCTC's Governance and Responsibilities 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 . i 93 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 • (1989 Measure A), Riverside County's voters in 2002 approved a 30-year extension of Measure A commencing July 1, 2009 • through June 30, 2039 (2009 Measure A). The Commission is also legally responsible for allocating Transportation Development Act (TDA) funds, the major source of funds for transit in the County. The TDA provides two major sources of funding: Local Transportation Fund (L TF), 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. 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. ii 94 • • • • Local Economy Riverside County has specific competitive advantages over nearby coastal counties (Los Angeles, Orange, and San Diego) including housing that was (and remains) more available and affordable and plentiful commercial real estate and land available for development at lower costs. 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's employment and commercial base diversified and the County's share of the regional economy increased. 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 growth and the relatively lower average income levels when compared to coastal areas. These factors resulted in fluctuating Measure A and L TF sales tax revenues and Transportation Uniform Mitigation Fees (TUMF); however, the sales tax revenues appear to have stabilized since FY 2009/10. While recovery from the nationwide recession in the local Inland Empire economy has lagged the nation and other areas of California (State), the local economy is experiencing significant improvement. Sales tax revenues have rebounded from the recent economic downturn's low point in 2010, with Measure A revenues growing 10.7% in FY 2012/13 and 4.6% in FY 2013/14. The Commission's outlook for FY 2013/14 continues to be cautiously optimistic; however, the state and federal budget issues continue to affect funding of the Commission's capital projects and programs. Ongoing problems with funding of the Federal Highway Trust Fund could cause delays in receipt of federal funding. Should Measure A and L TF 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. 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, transportation funding has stabilized but there is significant debate regarding future priorities. Governor Brown's transportation secretary is in the midst of an effort to reform the California Department of Transportation (Caltrans) and has clearly stated a preference for a "Fix it First" orientation that stresses ongoing maintenance over capacity enhancement. In addition to a focus on maintenance, the State has made active transportation projects such as bicycle and pedestrian facilities a priority. Sustainability is now the key word of the day and will likely impact the direction of state funding for many years into the future. The news on the federal level is somewhat less predictable. The comprehensive transportation bill known as Moving Ahead for Progress in the 21 51 Century (MAP-21) expired in June 2014, but has been extended by Congressional action until May 2015. One important provision of MAP-21 expands the Transportation Infrastructure Finance and Innovation Act (TIFIA). The Commission is utilizing TIFIA funding for its current project on State Route (SR) 91 in Corona and could seek additional financing from the program for other projects in the future . iii 95 In the meantime, the federal government will continue to be a source of highway funding through the Surface Transportation • Program 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 is utilizing $75 million in Federal Transit Administration (FT A) Small Starts funding to pay for its Metrolink expansion project to Perris. Capital Project Delivery and Implementation 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, State Transportation Improvement Program (STIP), and Proposition 1 B dollars as well as the development of tolled express lanes on Interstate (I) 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. The Commission is currently in the midst of an unprecedented era of transportation investment. The results can be seen throughout Riverside County with numerous projects under construction, successful transit service, and promises of more on • the way in the near future. 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. Highways. The Commission is currently working on the two remaining projects yet to be completed from the 1989 Measure A program. The largest of these two projects widens SR-91 through Downtown Riverside. The SR-91 high occupancy vehicle lane project construction in Riverside from Adams Street to the 60/911215 interchange was approved for Proposition 1 B Corridor Mobility Improvement Account (CMIA) funding. The Commission and Caltrans District 8 partnered on the design and right of way activities, and construction began in spring 2012 with an estimated completion date in 2015. The final 1989 Measure A project to be developed is the SR-74 curve widening. Construction for the SR-74 curve widening near Hemet began in early 2014 but has experienced a slight delay due to unforeseen conflicts with utilities. Once the relocation of a gas line is completed, construction should begin again in late 2014 or early 2015. Looking forward to projects in the 2009 Measure A, the 1-215 corridor from Murrieta to Perris continues to be an important corridor for the Commission. The Commission is adding a third mixed flow lane in each direction to the central segment from Scott Road to Nuevo Road, resulting in three continuous lanes from the 1-15 interchange to the SR-60 interchange. Construction started in early 2013 and is funded by STIP and CMIA. Future improvements along the corridor include a widened connector where the southbound 1-215 meets the 1-15 in the Temecula Valley as well as the development of the Perris Valley Line Metrolink extension which runs parallel to 1-215. 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. iv 96 • • • • 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 Line. 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 December 2007 the Commission received approval from the FT A to enter into project development with a project rating of medium-high. A total of $75 million in FTA Section 5309 Small Starts funding was appropriated by Congress for this project. An additional $53 million in STIP funds is also identified for the project. The project was temporarily delayed by litigation for a local neighborhood organization which pushed back construction until the end of 2013. The litigation has been settled favorably, and construction is well underway. A favorable construction bid of $132.2 million was approved by the Commission, and new commuter rail service on the Perris Valley Line is anticipated to commence in late 2015. Toll Program Moves Forward 91 Project Construction to Start: The SR-91 Corridor Improvement Project {91 Project) through Corona has been in construction since early 2014. Prior to the beginning of construction, the Commission obtained all necessary environmental approvals; executed a number of agreements with Caltrans, the Orange County Transportation Authority (OCTA), and a toll operator; approved and entered into a $632 million design-build contract; and successfully financed the $1.4 billion project. The highlight of the financing plan included the approval of a $421 million TIFIA loan through the U.S. Department of Transportation. The 91 Project's plan of finance was developed by a financial team, which included Fieldman, Rolapp & Associates as financial advisor and Goldman Sachs and Bank of America Merrill Lynch serving as co-senior underwriters for the issuance of $176. 7 million in toll revenue bonds and $462.2 million in sales tax revenue bonds. The 91 Project includes two tolled express lanes in each direction in the median of SR-91. The extension of these lanes will provide a seamless connection to the OCTA 91 Express Lanes; expand the 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. 1-15 The Next Project: The 1-15 Corridor Improvement Project (1-15 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 extend from the south near Cajalco Road to the north at SR- 60. The lanes will have the same benefits mentioned previously for the 91 Project. The 1-15 CIP's environmental studies and preliminary engineering work continue to progress and are scheduled for completion in late 2015, with construction expected to commence in 2018 afterthe completion of the 91 Project in 2017. TUMF Plays an Important Role In the Coachella Valley, a TUMF program was established shortly after the passage of the 1989 Measure A. The program requires developers to pay a fee on new development to fund arterial improvements. Cities are required to participate in the program or forfeit Measure A local dollars to CVAG, which oversees the arterial program and has been successful in funding a number of important arterial and freeway interchange projects . v 97 With the passage of the 2009 Measure A, a TUMF program with participation requirements similar to that in the Coachella Valley is in place in western Riverside County (Western County} and administered by the Western Riverside Council of Governments. TUMF funds received by the Commission are split evenly between new corridors, including the Mid County Parkway, and regional arterials, including local projects and the SR-79 realignment project. To date, nine projects have been completed, seven projects are under construction, and three projects are in preliminary engineering. Regional Projects Receive Significant Funding In January, the Commission awarded more than $152 million to local jurisdictions for a wide variety of street improvements, expanded freeway interchanges, and active transportation improvements for bicyclists and pedestrians. A number of funding sources were combined to fund as many projects as possible, and the effort utilizes Measure A and two federal funding sources. A total of 33 projects will receive funding during the next two years and 18 local jurisdictions including local cities, the County, and the Riverside Transit Agency (RT A) will move forward with the various projects. Among the higher profile projects are the widening of Clinton Keith Avenue in Murrieta, the construction of a truck climbing lane in the Banning Pass on SR-60, widening Magnolia Street in the city of Riverside, widening Highway 111 in Indio, and constructing a new freeway interchange at 1- 215/Newport Road in Menifee. Additionally a number of active transportation projects received funding including the Santa Ana River Trail, the CV link project in the Coachella Valley, and a Bike Share Program in the city of Riverside. Rail Development, Operations and Support As one of five funding partners in the Southern California Regional Rail Authority, which operates the Metrolink commuter rail service, the Commission is engaged in a continual exercise of consensus building with its partners to provide effective regional service. Now consisting of seven lines serving six counties, the system carries an average of 42,600 passengers each weekday. The Commission owns and operates five stations served by the three Metrolink lines operating through the County and will add four more once the Perris Valley Line Extension begins carrying passengers in late 2015: ~ Riverside Line: 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 5,000 daily riders. ~ Inland Empire Orange County (IEOC) Line: Begins in nearby San Bernardino with stops at 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. Ridership on the IEOC line remained steady in the past year with an average daily ridership of 4,400. This line also provides weekend service. ~ 91 Line: Provides service from Riverside to Los Angeles with stops in La Sierra, North Main Corona, West Corona, Fullerton, Buena Park, Norwalk and Commerce before terminating at Union Station. Daily patronage on the line averages 3,000. 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 RTA bus operations and providing park and ride spaces. It will be one of four new Perris Valley Line commuter rail stations. vi 98 • • • • • • Motorist Assistance Powered by IE511 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 approximately 570 call boxes serving more than 500 centerline miles of highways. The call box program is funded by an annual $1 surcharge added to vehicle registrations. 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 4,700 calls during FY 2013/14. 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 commute 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 optimize traffic flow and motorist safety during rush hour periods. The FSP is funded by the Riverside County SAFE and the State. During FY 2013/14, the FSP provided assistance to approximately 44,300 motorists. Another effort augments existing FSP service with additional tow trucks in construction areas as another means of construction-related congestion mitigation. To further promote mobility, the Commission, in partnership with the San Bernardino Associated Governments (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. IE511 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. IE511 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 Bernardino 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. IE511 is funded with Riverside County SAFE funds in addition to SANBAG reimbursements. In FY 2013/14, IE511 assisted approximately 443,000 web visits and 328,000 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 18th year, to provide identical commuter assistance program for San Bernardino County. 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 County 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. The most prominent commuter 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 ridesharing to and from work with access to discounts at over 135,000 local and national merchants through RidesharePlus . vii 99 In providing commuter benefits to employers and employees, during FY 2013/14, the program attracted 1, 106 drive alone • commuters to rideshare and participate in the Rideshare Incentives program. RidesharePlus Rewards had 5,770 participants for the same period. In total, the Commuter Assistance program resulted in over 1.7 million one-way trips reduced, 40.9 million miles saved, and approximately 412,800 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. 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 for Riverside County in 2008, the Commission became eligible for federal funding of specialized transit in the County. The 2013 Universal Call for Projects for Specialized Transit (Universal Call) provided funding awards to 22 public and nonprofit agencies using a combination of Measure A funding and new federal funds under the JARC and New Freedom (NF) programs, over a two-year period. The 2013 Universal Call included approximately $2.7 million in new federal funding to augment the $5.2 million in Measure A funds committed locally by the Commission for FY 2013/14 and FY 2014/15. During FY 2013/14, public and nonprofit operators provided approximately 567,600 Measure A/JARC/NF one-way trips in both Western County and Coachella Valley. Planning .for the Future In terms of future progress, the Commission gave 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 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 Bernardino. 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, which was partially 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. viii 100 • • • • • 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, 2013. This was the 21st 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, program management and staff, and Commission's auditors for the time, effort, and commitment so vital for the final completion of the CAFR. In closing, without the leadership and the support of the Board, preparation of this report would not have been possible. Its prudent management must be credited for the strength of the Commission's fiscal condition, and its vision ensures that the Riverside County Transportation Commission will be on the move planning for and building a better future for Riverside County residents and commuters. Very truly yours, av1f_f/!1r ANNE MAYER Executive Director ~~ THERESIA TREVINO Chief Financial Officer ix 101 • • • 102 • • • Riverside County Transportation Commission Organization Chart Fiscal Year 2013/14 ,~o~rc AniSt;onf121 x 103 P!Ml1W'it & Procnmrmric Olrodor l *ll@j'f • • • 104 • • • Name and Position Marion Ashley Daryl Busch Scott Matas Deborah Franklin Roger Berg Joseph DeConinck Ella Zanowic Mary Craton Greg Pettis Steven Hernandez Karen Spiegel Adam Rush Larry Smith Douglas Hanson Glenn Miller Frank Johnston Terry Henderson Bob Magee Scott Mann Jesse Molina Rick Gibbs Berwin Hanna Jan Harnik Ginny Foat Ted Weill Steve Adams Andrew Kotyuk Ron Roberts Ben Benoit Kevin Jeffries John F. Tavaglione Jeff Stone John J. Benoit Basem Muallem Riverside County Transportation Commission List of Principal Officials As of June 30, 2014 Board of Commissioners Title Chair (Commission) Vice Chair (Commission) 2nd Vice Chair (Commission) and Vice Chair (Eastern Riverside County Programs and Projects Committee) Member Vice Chair (Budget & Implementation Committee) Member Member Member Member Member Member Member Member Chair (Budget & Implementation Committee) Member Chair (Western Riverside County Programs and Projects Committee) Chair (Eastern Riverside County Programs and Projects Committee) Member Member Member Member Member Member Member Member Member Member Member Vice Chair (Western Riverside County Programs and Projects Committee) Member Member Member Member Governor's Appointee Management Staff Anne Mayer, Executive Director John Standiford, Deputy Executive Director Michael Blomquist, Toll Programs Director Marlin Feenstra, Project Delivery Director Agency County of Riverside, District 5 City of Perris City of Desert Hot Springs 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 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 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 County of Riverside, District 4 Caltrans, District 8 Shirley Medina, Planning and Programming Director Theresia Trevino, Chief Financial Officer Robert Yates, Multimodal Services Director xi 105 • • • 106 • • • Government Finance Officers Association Certificate of Achievement for Excellence in Financial Reporting Presented to Riverside County Transportation Commission California For its Comprehensive Annual F'mancial Report for the Fiscal Year Ended June 30, 2013 Executive Director/CEO xii 107 • • • 108 • · Financial Section • • 109 • This page intentionally left blank. • • 110 • • • McGladrey Independent Auditor's Report eoard of CommisslPners Riverside County Tran§lportatfon Commission Rivel'$ide, CA Report on the Financial St.atements We have audited the accompanying financial statements of the governmental actiVlties, 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, 2014, and the related notes to the financial statements, which collectively comprise the Commission's basic financial statements as listed in the tabte of contents, Management's Responsll)Ulty for the Financial ~tatements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this Includes the design, implementation and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Auditor's Responsibility Oyr .responsibility is to express opinions on these financial statements based on our al,ldit. We conducted our audit in accordance with audi,ting standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standar(Js, 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 from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and discl.osures in the financial statements. The procedures selected depend on the auditor's judgment. including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the Commission's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Commission's internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. Opinions In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, each major fund, and the aggregate remaining fund information of the Commission as of June 30, 2014, and the respective changes in financial position for the year then ended, in accordance with accounting principles generally accepted in the United States of America . Other Matters Required Supplementa!Y Information Accounting principles generally accepted in the United States of America require that the management's discussion and analysis, budgetary comp!11rlson and other pQsternployment 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 oonsiders it to be an essential part of financial reporting fQr placing the basic financial statements in an appropriate operational, economic or historical con~~Xl· We hi;ive applied certain limited procedures to the required supplementary Information in accordance with l!l1Jdlftrlg 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, .end. pther knowledge we obtained during our audit of the basic financial statements. We do not exptess an opinion ol provide any. assur,a~ c;in ttiel iofQrmatil;)n because t~ limited procedures do not provide us with sl.tff~Jent evidence llll .el!PJ:tas an opl~lon QF provide any assurance. Other Information Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the Commission's baeic flnanci~I statf.!rnents. The CQmblning c;ind individufll nonmejor fu,od financial statements, budgetary cpmparlson schedules, schedule of expenditures, and the Introductory and statijltiul sectlOn, liited in t~ ta.ble of ccmtents as supplementary information. are presented for purposes of acldltiontal anily11s end are .Mt a required part oUhe bask; financial statements. • The, oombining and indivtd!#il nof:lmajor ft:lnd financial statements, budgetary comparison schedules and schedule of expenditures are the responsibility of management and were derived from and relate directly to the underlying accounting and other records used to prepare the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financ:tal • statements. and. certain additional pr~ce~ures, including comp~ring and r~conciling such information directly to tile underlying accou!)tlng and c:fttler records used to pr,epate the bf1Slc financial statemepts or to the basic financial statements ~selves, and other addttl0 rj~I procedures tn accordance with e1Jc;f it.ln9 standards generally accepted In the United States of Amenca. 111·our opintqn, the combing and individ~ual nonmaJor fUnd ·finan~al statementS; biidg~tary comparison sched1,1les am;t schedules of E;ixpend~ures are fairly stated, in all material respects, in relation to the basic financial statements as a whole. The Introductory and statistiul 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 them. Other Reporting R.equlred by Sov~mment Auditing Standards In c;iccordance with Government Auditing Standards, we have also issued our report dated October 31, 2014 on our consideration of.the Cornmlssion's internal control over financial r.eporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over fint;1ncial reporting and compliance and the results of that testing, and not to provide an opinion on internal control over {inancial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the Commission's internal control over financial reporting and compliance. /j/~Lc!..,P Irvine, CA October 31, 2014 2 112 • • • • Riverside County Transportation Commission Management's Discussion and Analysis YearEndedJune3~2014 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, 2014. We encourage readers to consider the information on financial performance presented here in conjunction with the transmittal letter on pages i-ix and the Commission's financial statements which begin on page 16. Financial Highlights • Total net position of the Commission was $553,854,373 and consisted of net investment in capital assets of $381,796,683; restricted net position of $642,385,244; and unrestricted net position (deficit) of ($470,327,554). • 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 California (State) Department of Transportation (Caltrans) or local jurisdictions, there is no asset corresponding to the liability. Accordingly, the Commission does not have sufficient current resources on hand to cover current and long- term liabilities; however, future Measure A sales taxes are pledged to cover Measure A debt service payments when made. • Net position decreased by $185,906,662 during fiscal 2014. General revenues consisting primarily of sales taxes are the major funding source for the governmental activities. The change in net position was lower than the prior year primarily as a result of an estimate for the portion of the State Route 91 (SR-91) corridor improvement project costs that are not capitalizable and not related to the tolled express lanes. • Total capital assets, net of accumulated depreciation, were $527,471,351 at June 30, 2014, representing an increase of $40,010,002, or 8%, from June 30, 2013. 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 SR-91 corridor improvement projects. • The Commission's governmental funds reported combined ending fund balances of $1,031,476,421, an increase of $409,289,526 compared to fiscal 2013 primarily due to the proceeds from the issuance of debt. Approximately 81% of the governmental fund balances represent amounts available for the Measure A program, including debt service and funding from the issuance of debt, and the TUMF program. Overview of the Financial Statements This discussion and analysis are intended to serve as an introduction to the Commission's basic financial statements, which are comprised of three components consisting of government-wide financial statements, fund financial statements, and notes to the financial statements. This report also contains required supplementary information and other supplementary information in addition to the 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 . 3 113 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, governmental fund financial statements focus on near-term inflows and outflows of spendable resources and on balances of spendable resources available at the end of the fiscal year. Such information may be useful in evaluating a government's near-term financing requirements. Since the focus of governmental funds is narrower than that of the government-wide financial statements, it is useful to compare the information presented for governmental funds with similar information presented for governmental activities in the government-wide financial statements. As a result, readers may better understand the long-term impact of the government's near-term financing decisions. Both the governmental fund balance sheet and related statement of revenues, expenditures and changes in fund balances provide a reconciliation to facilitate this comparison between governmental funds and governmental activities. The Commission maintains 13 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 Bonds Capital Projects funds; and Debt Service fund. Data from the other five 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. 4 114 • • • • • • 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 22-48 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 49-53 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 54-61 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, 2014, the Commission's assets exceeded liabilities by $553,854,373, a $185,906,662 decrease from June 30, 2013. Our analysis below focuses on the net position and changes in net position of the Commission's governmental activities. Net Position Approximately 69%, compared to 46% in 2013, of the Commission's net position reflects its net investment in capital assets (i.e., construction in progress; land and improvements; construction and rail operating easements; rail stations; building and equipment held for resale; 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 external restrictions on how they may be used. Restricted net position from governmental activities represented approximately 116% and 84% of the total net position at June 30, 2014 and 2013, respectively. Restricted net position from governmental activities increased by $23,295,537, as a result of increased 2009 Measure A revenues available for Western County highways and for transit and specialized transportation programs. 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 $216,162,697 deficit at June 30, 2013 to a $470,327,554 deficit at June 30, 2014. This deficit results primarily from the impact of recording of the Commission's long-term debt, consisting of bonds issued for Measure A highway, local street and road, and regional arterial projects. While a significant portion of the debt has been incurred to build these projects which are capital assets, upon completion for most projects with the exception of tolled express lanes, these projects are transferred to Caltrans 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 . 5 115 The following is condensed financial data related to net position at June 30, 2014 and June 30, 2013: Net Position Current and other assets Capital assets not being depreciated Capital assets being depreciated, net of accumulated depreciation Total assets Deferred outflows of resources Total assets and deferred outflows of resources Long-term obligations Other liabilities Total liabilities Net position: Net investment in capital assets Restricted Unrestricted (deficit) Total net position Changes in Net Position June 30, 2014 June 30, 2013 $1,117,825,287 $ 67 4,469,833 468,090,945 424,755,502 59,380,406 62,705,847 1,645,296,638 1, 161,931, 182 21,837,570 22,795,319 1,667, 134,208 1, 184,726,501 999,817,264 371, 116,973 113,462,571 73,848,493 1, 113,279,835 444,965,466 381,796,683 336,834,025 642,385,244 619,089,707 (470,327,554) (216, 162,697) $ 553,854,373 $ 739,761,035 The Commission's total program and general revenues were $392,913,586, while the total cost of all programs was $578,820,248. Total revenues increased by 35%, and the total cost of all programs increased by 146%. Approximately 23% 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 decreased the Commission's net position by $185,906,662, and condensed financial data related to the change in net position is presented in the table below. Key elements of this decrease are as follows: • Charges for services decreased by $207,396, or 22%, primarily due to a reduction in property management revenues generated from properties acquired in connection with the SR-91 corridor improvement project; • Operating grants and contributions increased by $15,199,556, or 33%, primarily due to federal and state reimbursements related to the Coachella Valley/San Gorgonio Rail Pass corridor and 2009 Measure A highway projects, particularly the 1-215 corridor improvement project; • Capital grants and contributions increased by $66,847,625, or 1365%, because of an increase in the Perris Valley Line extension and SR-91 corridor improvement projects reimbursable federal and state costs; • Measure A sales tax revenues increased by $6,927,770, or 5%, due to the continued economic recovery in the region; • Transportation Development Act (TOA) sales taxes increased by $4,954,536, or 6%, as a result of an increase in Local Transportation fund revenues due to the continued economic recovery in the region; • Unrestricted investment earnings increased $8,129,873, or 488%, as a result of higher cash and investment balances due to the issuance of debt; • Other miscellaneous revenues decreased $48, 132, or 8% due to prior year revenues related to the SR-91 Green River interchange project; and • Gain on sale of capital assets, net relates to the sale of surplus rail property. 6 116 • • • • • • Changes in Net Position 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 Gain on sale of capital assets, net Total revenues Expenses General government Bicycle and pedestrian facilities CETAP Commuter assistance Commuter rail Highways Local streets and roads Motorist assistance Planning and programming Regional arterials Transit and specialized transportation Interest expense Total expenses Increase in net position Net position at beginning of year Net position at end of year Year Ended June 30, 2014 June 30, 2013 $ 726,471 $ 933,867 61,767,456 46,567,900 71,744,926 4,897,301 156,355,894 149,428,124 91,953,554 86,999,018 9,794,662 1,664,789 556,049 604,181 14,574 392,913,586 291,095,180 6,994,832 6,959,827 1,065,476 956,308 2,195,074 954,700 3, 171,842 2,904,048 17,255,402 23,531,252 339,194,681 59,604,916 46,677,580 44,594,891 3,498,420 3,563,581 3,216,441 3,725,703 23,886,840 17,047,135 78,723,898 55,659, 188 52,939,762 15,364,677 578,820,248 234,866,226 (185,906,662) 56,228,954 739,761,035 683,532,081 $ 553,854,373 $ 739, 761,035 • General government expenses increased by $35,005, or less than 1 %, primarily as a result of professional fees related to bond financing activities; • Bicycle and pedestrian facilities expenses increased by $109,168, or 11%, due to an increase in claims for approved projects; • CETAP expenses increased by $1,240,374, or 130%, due to an increase in consultant efforts related to the Mid County Parkway project; • Commuter assistance expenses increased by $267,794, or 9%, due to the modifications to ridematching software; • Commuter rail expenses decreased by $6,275,850, or 27%, as a result of litigation settlement and other professional costs incurred in FY 2012/13; • Highway expenses increased by $279,589,765, or 469%, due to financing costs related to the SR-91 corridor improvement project, an estimate for the portion of the SR-91 corridor improvement project costs that are not capitalizable and not related to the tolled express lanes, the Multi-Species Habitat Conservation Planning funding commitment, and 1-215 corridor improvement project costs; • Local streets and roads expenses increased by $2,082,689, or 5%, because of an increase in the overall Measure A sales tax revenues which affect the local street and road distributions to local jurisdictions; 7 117 • Motorist Assistance expenses decreased by $65, 161, or 2%, due to a reduction in programming and graphic design needs; • Planning and programming expenses decreased by $509,262, or 14%, due to the decrease in goods movement activities; • Regional arterial expenses increased by $6,839,705, or 40%, as a result of an increase in reimbursements to local jurisdictions for approved regional arterial projects; • Transit and specialized transportation expenses increased by $23,064,710, or 41%, due to an increase in bus transit operating and capital claims in all three geographic areas; and • Interest expenses increased by $37,575,085 or 245%, primarily as a result of interest related to the issuance of debt in July 2013. The graphs below present the program and general revenues by source for the Commission's governmental activities for the fiscal years ended June 30, 2014 and June 30, 2013: Gain on -;ale of capital assets~ net 0% Unrestricted___..... investment earnings 1% 2013 d1arges for sentices caplt•I grants and contributions 2% earnings. 3% 2014 The following graph depicts program expenses for the Commission's governmental activities for the fiscal year ended June 30, 2014: $400.000,000 $350.000,000 $300,000,000 $250,000,000 $200.000,000 $150,000.000 $100,000,000 $50,000,000 $- !112014 11112013 8 118 • • • • Financial Analysis of the Commission's Funds • • As of June 30, 2014, the Commission's governmental funds reported combined ending fund balances of $1,031,476,421, an increase of $409,289,526 compared to 2013. About 3%, or $32,235,956, and less than 1%, or $5,258,703, 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: • $4,624,230 in TDA funds that have been allocated to jurisdictions within the County for bicycle and pedestrian projects; • $32,388,766 of TUMF funds for new CETAP corridors in Western County; • $14,892,986 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 under the 1989 Measure A and the 2009 Measure A programs; • $68,690,596 in TDA and Measure A funds for commuter rail operations and capital projects including the Perris Valley Line extension which is expected to be completed in 2015 and $4, 134, 185 in Proposition 1 B funds for Coachella Valley rail; • $136,312,284 in 2009 Measure A funds and toll bonds proceeds available to pay sales tax and toll revenue bonds debt service over the next year; • $479,796,792 for highway, economic development, and new corridor projects related to the 1989 Measure A and the 2009 Measure A programs; • $2,787 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; • $7,890,918 in state funds for motorist assistance services; • $3, 182,315 of TDA funds for planning and programming activities; • $63,625,405 for regional arterial projects in Western County related to the TUMF and 2009 Measure A programs; • $9,336,334 of Measure A funds for transit and specialized transportation in the Western County and $2,348, 119 for specialized transportation in the Coachella Valley; and • $166,756,045 in TOA funds available to the commuter rail and bus transit operations and capital in the County. The following table presents the changes in fund balances for the governmental funds for the fiscal years ended June 30, 2014 and 2013: General fund Special Revenue major funds: Measure A Western County Measure A Coachella Valley Transportation Uniform Mitigation Fee Local Transportation Fund Capital Projects major funds: Commercial Paper Bonds Debt Service fund Nonmajor governmental funds Fund Balances Year Ended June 30 2014 2013 $ 10,590, 109 $ 12,840,351 9 119 336,826,290 33,433,491 57,318,771 115,877,309 28,409,089 245, 180,453 136,312,284 67,528,625 294,464,723 27,356,273 67,306,789 105,242,957 36,097,201 4,477,116 11,225,363 63,176,122 % Change (18)% 14% 22% (15)% 10% (21)% 5376% 1114% 7% Key elements for the changes in fund balances are as follows: • The 18% decrease in the General fund resulted from reduced transfers in from the Local Transportation Fund for commuter rail costs and increased transit operating contributions to Southern California Regional Rail Authority (SCRRA); • The 14% increase in Measure A Western County Special Revenue fund was attributed to the transfer in of debt proceeds and federal and state reimbursements for highway and commuter rail projects; • The 22% 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 15% decrease in the Transportation Uniform Mitigation Fee Special Revenue fund was attributable to increased reimbursements to local jurisdictions for approved projects; • The 10% increase in the Local Transportation Fund resulted from the excess of sales tax revenues over claims of allocations for transit operations and capital projects and for bicycle and pedestrian facility projects; • The 21 % decrease in the Commercial Paper Capital Projects fund was attributed to the repayments of advances receivable and the use of commercial paper proceeds for the advance funding of 2009 Measure A projects; • The 5376% increase in Bonds Capital Projects fund was attributed to $638,854,602 of debt proceeds from sales tax and toll revenue bonds issued in July 2013 net of transfers out for project costs; • The 1114% increase in the Debt Service fund was due to the transfer of capitalized interest and debt service reserve funds related to the sales tax and toll revenue bonds issued in July 2013; and • The 7% increase in nonmajor governmental funds resulted from the Coachella Valley Rail Special Revenue fund Proposition 1 B revenues. General Fund Budgetary Highlights • Differences between the original budget and the final amended budget for the General fund resulted in a $138,865 increase in • appropriations and were related to the following changes: • $75,000 increase to general government for information technology support services; • $63,865 increase to the commuter rail program for program management activities; • $78,000 decrease for various planning and programming activities; • $78,000 increase for transit and specialized transportation activities; • $23,000 increase to debt service for capital lease payments; and • $23,000 decrease to capital outlay for furniture and equipment. During the year, General fund revenues were below budgetary estimates by $318,256; expenditures were less than budgetary estimates by $8, 170,248. General fund budgetary variances between the final amended budget and actual amounts are as follows: General Fund Budgetary Variances Revenues Sales taxes Intergovernmental Investment income Other Total revenues Year Ended June 30, 2014 Final Amended Budget Actual $ 2,800,000 844,000 20,200 224,800 $ 3,889,000 10 120 $ 2,800,000 526,238 59,245 185,261 $ 3,570.744 % Variance 0% (38)% 193% . (18)% (8)% • • • • General Fund Budgetary Variances Expenditures Current General government Commuter rail Planning and programming Transit and specialized transportation Debt service Capital outlay Total expenditures Other financing sources (uses) Transfers in Net change in fund balance Year Ended June 30, 2014 Final Amended Budget Actual $ 5,540,000 $ 4,653,454 15,501,265 11,858,991 5,767,000 2,548,111 429,800 391,298 23,000 22,881 416,200 32,282 $ 27,677,265 $ 19,507,017 $ 15,581,365 $ 13,686,031 $ (8,206,900} $ (2,250,242} Significant budgetary variances between the final amended budget and actual amounts are as follows: % Variance 16% 23% 56% 9% 0% 92% 30% {12}% (73}% • $317,762 negative variance for intergovernmental revenues primarily related to lower intergovernmental reimbursements related to commuter rail and planning, programming and monitoring expenditures; • • • • • • • • • $39,045 positive variance for interest revenue related to higher cash and investment balances; $39,539 negative variance for other revenues related to anticipated revenues for rail maintenance activities not earned; $886,546 positive variance for general government expenditures primarily related to professional services and other expenditures such as insurance, training, and travel; $3,642,274 positive variance for commuter rail expenditures related to station maintenance and repairs and Metrolink operations; $3,218,889 positive variance for planning and programming expenditures related to grade separation project funding; $38,502 positive variance for transit and specialized transportation expenditures related to personnel costs and legal and professional services; $119 positive variance for debt service for capital lease expenditures; $383,918 positive variance for capital outlay expenditures; and $1,895,334 negative variance for transfers in related to the anticipated needs for administrative cost allocations as well as commuter rail and planning and programming activities. Capital Assets and Debt Administration Capital Assets As of June 30, 2014, the Commission had $527,471,351, net of accumulated depreciation, invested in a broad range of capital assets including construction in progress; land and land improvements; construction 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 2013/14 was 8%. Major capital asset additions during 2014 included construction in progress related to preliminary engineering costs for the 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 . 11 121 The construction in progress related to the SR-91 corridor improvement project consists of approximately $109,971, 100 in costs related to the tolled express lanes, which will be an intangible asset upon commencement of operations anticipated in 2017, and general purpose lane improvements, which title will primarily be transferred to Caltrans upon completion. The portion of capital assets related to the SR-91 corridor improvement project that will not remain as a capital, or intangible, asset of the Commission have been estimated and are not capitalized through construction. The table below is a comparative summary of the Commission's capital assets, net of accumulated depreciation: June 30, 2014 June 30, 2013 Capital Assets not being depreciated: Land and land improvements $ 183,810,462 $ 215,548,472 Building and equipment held for resale 61,832 Construction easements 1,616, 165 16,564 Rail operating easements 53,839,142 39,484,143 Construction in progress 228,825, 176 169,644,491 Total capital assets not being depreciated 468,090,945 424,755,502 Capital Assets being depreciated, net of accumulated depreciation: Rail stations 59,058,045 62,375,971 Office improvements, furniture, equipment, and vehicles 322,361 329,876 Total capital assets, net of accumulated depreciation 59,380,406 62,705,847 Total capital assets $ 527,4 71,351 $ 487,461,349 More detailed information about the Commission's capital assets is presented in Note 4 to the financial statements. Debt Administration As of June 30, 2014, the Commission had $946,622,129 outstanding in sales tax and toll revenue bonds. The total debt increased from the $311,400,000 outstanding as of June 30, 2013, as a result of the issuance in July 2013 of $462,200,000 in sales tax revenue bonds and $176,654,602 in senior toll revenue bonds to provide funding for the SR-91 corridor improvement project, retire $60,000,000 of the commercial paper notes, fund capitalized interest and a debt service reserve, and pay issuance costs. The Commission's sa.les tax revenue bonds received ratings of "AA+" from Standard & Poor's (S&P), "Aa2" from Moody's Investors Service (Moody's), and "AA" from Fitch Ratings (Fitch), and the toll revenue bonds received ratings of "BBB-" from S&P and Fitch. The Transportation Infrastructure Finance and Innovation Act (TIFIA) loan received a rating of "BBB-" from 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. In September 2013 the Commission reduced the program to $60,000,000 following the completion of financing activities related to the SR-91 corridor improvement project. The commercial paper notes are rated "A 1" by S&P and "P1" by Moody's. As of June 30, 2014, the Commission had $0 in 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 $766,500,000. The Commission has also authorized the issuance of toll revenue bonds not to exceed $900,000,000, which is in excess of the total outstanding debt of $180, 122, 129. The TIFIA loan, which is a toll revenue bond that is subordinate to the senior toll revenue bonds, provides federal funding up to $421,054,409 which may be drawn upon after certain conditions have been met. There have been no draws on the TIFIA loan. Additional information on the Commission's long-term debt can be found in Note 6 to the financial statements. 12 122 • • • • • • Economic Factors and Other Factors During its March 2014 Commission meeting, the Commission adopted guiding principles for use in the preparation of the FY 2014/15 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 2014/15 annual budget on June 11, 2014. Over 85% of the $1,022,298,200 balanced budget is related to capital project expenditures, including: $412,595,500 for preliminary engineering, right of way acquisition, construction, and design-build activities related to the SR-91 corridor improvement project consisting of tolled express and general purpose lanes and interchange improvements; $135,880,300 for the Perris Valley Line Metrolink extension project engineering, construction, and right of way acquisition; $52,291,400 for various Western County TUMF regional arterial projects; $41,650,000 for right of way acquisition and construction related to the 1-215 corridor improvements from Scott Road to Nuevo Road; $9, 127,000 for final design, right of way acquisition, and construction related to the SR-91 high occupancy vehicle lanes from Adams Street to the 60/91/215 interchange; $12,450,000 for preliminary engineering and right of way acquisition for the Mid County Parkway project; $5,700,000 for construction related to the Riverside quiet zones; $5,540,000 for final design and right of way acquisition on the 91/71 interchange improvements project; and $4,050,000 for preliminary engineering services and right of way support services related to the 1-15 corridor improvement project. Distributions to the local jurisdictions for local streets and roads are budgeted at $49,882,000. Budgeted expenditures related to funding of public bus transit operations and capital projects in the County aggregate $111,096,400, and budgeted transfers out related to funding of commuter rail operations and capital are $13, 151,600. Debt service costs are $54,696,200, or 5% 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 2015 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 . 13 123 This page intentionally left blank. 14 124 • • • • • • Basic Financial Statements 15 125 • • • 126 • Riverside County Transportation Commission Statement of Net Position June 30, 2014 Governmental Activities Assets Cash and investments $ 574,282,521 Receivables: Accounts 90,983,205 Advances to other governments 34,406,285 Interest 1,544,499 Due from other governments 230,695 Prepaid expenses and other assets 32,235,956 Restricted investments held by trustee 384, 142, 126 Capital assets not being depreciated 468,090,945 Capital assets, net of accumulated depreciation 59,380,406 Total assets 1,645,296,638 Deferred outflows of resources Accumulated decrease in fair value of derivatives 21,837,570 Total assets and deferred outflows of resources 1,667,134,208 Liabilities Accounts payable 78,368,465 • Interest payable 7,270,771 Other liabilities 5,985,765 Derivative instrument-swap 21,837,570 Long-term liabilities: Due within one year 14,323,360 Due in more than one year 985,493,904 Total liabilities 1, 113,279,835 Net position Net investment in capital assets 381,796,683 Restricted for: Bicycle and pedestrian facilities 4,624,230 CETAP 32,388,766 Commuter assistance 14,893,356 Commuter rail 72,840,215 Debt service 9,583, 150 Highways 254, 672,444 Local streets and roads 228,872 Motorist assistance 7,890,918 Planning and programming 3, 197,390 Regional arterials 63,625,405 Transit and specialized transportation 178,440,498 Unrestricted (deficit) (470,327,554) Total net position $ 553,854,373 See notes to financial statements • 16 127 Riverside County Transportation Commission • Statement of Activities Year Ended June 30, 2014 Net (Expense) Revenue Program Revenues and Changes in Net Position Charges for Operating Grants Capital Grants Governmental Functions/Programs Expenses Services and Contributions and Contributions Activities Primary Government Governmental Activities: General government $ 6,994,832 $ 999 $ 11,614 $ $ (6,982,219) Bicycle and pedestrian facilities 1,065,476 (1,065,476) CETAP 2, 195,074 5,642, 197 3,447, 123 Commuter assistance 3,171,842 1,403,892 (1,767,950) Commuter rail 17,255,402 297,911 4,315,047 32,571,926 19,929,482 Highways 339, 194,681 412,535 40,154,214 39, 173,000 (259,454,932) Local streets and roads 46,677,580 (46,677,580) Motorist assistance 3,498,420 15,026 4,190,974 707,580 Planning and programming 3,216,441 436,955 (2, 779,486) Regional arterials 23,886,840 5,599,002 (18,287,838) Trans it and specialized transportation 78,723,898 13,561 (78,710,337) Interest expense 52,939,762 (52,939,762) Total governmental activities $ 578,820,248 $ 726,471 $ 61,767,456 $ 71,744,926 (444,581,395) General Revenues: • Measure A sales taxes 156,355,894 Transportation Development Act sales taxes 91,953,554 Unrestricted investment earnings 9,794,662 Other miscellaneous revenue 556,049 Gain on sale of capital assets, net 14,574 Total general revenues 258,674,733 Change in net position (185,906,662) Net position at beginning of year 739,761,035 Net position at end of year $ 553,854,373 See notes to financial statements • 17 128 • • • Riverside County Transportation Commission Balance Sheet· Governmental Funds June 30, 2014 Major Funds Special Revenue Capital Projects Transportation Other Measure A Measure A Uniform Local Nonmajor Western Coachella Mitigation Transportation Commercial Debt Governmental General County Valley Fee Fund Paper Bonds Service Funds Total Assets Cash and investments $ 9,715,957 $ 309,540,326 $ 30, 107,645 $ 52,685,873 $ 101,818,770 $ 294,236 $ 694,886 $ 6,083,997 $ 63,340,831 $ 574,282,521 Receivables: Accounts 704,294 59,523, 189 7,037,026 3,245,935 14,843,497 5,629,264 90,983,205 Advances 442, 175 29,842,851 4, 121,259 34,406,285 Interest 8,095 194,042 24,063 45,736 79,523 1,321 770,925 370,699 50,095 1,544,499 Due from other funds 1,447,747 14,011,872 573,505 7,337,848 514,588 67,894 23,953,454 Prepaid expenditures and other assets 257,721 31,978,235 32,235,956 Restricted ·investments held by trustee 253, 711,033 130,431,093 384,142,126 Total assets $ 12,133,814 $ 415,689,839 $ 37,742,239 $ 63,315,392 $ 116,741,790 $ 30,652,996 $ 259,365,997 $ 136,885,789 $ 69,020, 190 $1, 141,548,046 Liabilities and Fund Balances Liabilities: Accounts payable $ 1,296,372 $ 66,150,238 $ 3,765,615 $ 5,185,621 $ 864,481 $ $ $ $ 1,106, 138 $ 78,368,465 Due to other funds 7,628,517 543, 133 811,000 14,011,872 573,505 385,427 23,953,454 Other liabilities 247,333 5,084,794 2,243,907 173,672 7,749,706 Total liabilities 1,543,705 78,863,549 4,308,748 5,996,621 864,481 2,243,907 14, 185,544 573,505 1,491,565 110,071,625 Fund balances Nonspendable-prepaid amounts 257,721 31,978,235 32,235,956 Restricted for: Bicycle and pedestrian facilities 4,624,230 4,624,230 CETAP 32,388,766 32,388,766 Commuter assistance 14,892,986 14,892,986 Commuter rail 1,891,370 66,799,226 4,134,185 72,824,781 Debt service 136,312,284 136,312,284 Highways 175,123,267 31,083,983 28,409,089 245,180,453 479,796,792 Local streets and roads 842 1,389 556 2,787 Motorist assistance 7,890,918 7,890,918 Planning and programming 3,182,315 3,182,315 Regional arterials 38,695,400 24,930,005 63,625,405 Transit and specialized transportation 9,336,334 2,348, 119 111,253,079 55,502,966 178,440,498 Assigned: General government 5,258,703 5,258,703 Total fund balances 10,590, 109 336,826,290 33,433,491 57,318,771 115,877,309 28,409,089 245, 180,453 136,312,284 67,528,625 1,031,476,421 Total liabilities and fund balances $ 12,133,814 $ 415,689,839 $ 37,742,239 $ 63,315,392 $ 116,741,790 $ 30,652,996 $ 259,365,997 $ 136,885,789 $ 69,020, 190 $1,141,548,046 See notes to financial statements 18 129 • • • 130 • • • Riverside County Transportation Commission Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Position June 30, 2014 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. Interest payable on bonds outstanding is not due and payable in the current period and therefore is not reported in the funds. 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 Multi-Species Habitat Conservation Plan funding liability Remediation liability Sales tax bonds payable Toll revenue bonds payable Premium on sales tax bonds payable Discount on sales tax revenue bonds payable Discount on toll revenue bonds payable Net adjustment Net position of governmental activities (page 16) See notes to financial statements 19 131 $ 1,031,476,421 230,695 21,837,570 527,471,351 1,763,941 (7,270,771) (21,837,570) (630,797) (72,011) (18,000,000) (1,576,406) (766,500,000) (180, 122, 129) (36, 153,513) 870,854 2,366,738 (1,021,654,834) $ 553,854,373 • • • 132 • • • Riverside County Transportation Commission Statement of Revenues, Expenditures and Changes in Fund Balances -Governmental Funds Year Ended June 30, 2014 Major Funds Special Revenue Capital Projects Transportation Other Measure A Measure A Uniform Local Nonmajor Western Coachella Mitigation Transportation Commercial Debt Governmental General County Valley Fee Fund Paper Bonds Service Funds Total Revenues Sales laxes $ 2,800,000 $ 115,941,091 $ 36,471,460 $ $ 77,544,177 • ~ $ $ 15,552,720 $ 248,309,448 Transporta!ion Uniform Mi!igat1on Fee 171,321 11,113,073 11,284,394 Intergovernmental 526,238 110,845,186 (43,195) 2,767,401 8,390,975 122,486,605 Investment income 59,245 1,248,889 142,985 717,530 486,177 2,008,492 2,040,275 2,957,188 319,131 9,979,912 Olher 185,261 1,081,087 16,172 1,282,520 Total revenues 3,570,744 229,287,574 36,614,445 11,787,408 78,030,354 2,008,492 2,040,275 5,724,589 24,278,998 393,342,879 Expenditures Current: General government 4,653,454 2,325,849 12,000 6,991,303 Bicycle and pedestrian facilities 1,065,476 1,065,476 CETAP 6,509,915 6,509,915 Commuter assistance 3,136,150 3,136,150 Commuter rail 11,858,991 56, 148,017 65,406 68,072,414 Highways 286,354,957 12,743,165 300,000 299,398, 122 Local streets and roads 32,769,052 12,765,185 1,143,343 46,677,580 Motorist assistance 3,498,420 3,498,420 Planning and programming 2,548,111 655,962 3,204,073 Regional arterials 1,441 23.885,399 23,886,840 Transit and specialized transportation 391,298 5,025,073 5,217,000 53,209,690 14,880,837 78,723,898 Total programs 19,451,854 385,760,539 30,725,350 30,395,314 54,943,128 300,000 19,588,005 541,164,191 Debt service: Principal 12,884 60,000,000 7,100,000 67,112,884 Interest 9,997 789 43,399,417 43,410,203 Cos! of issuance 7,050,855 7,050,855 Total debt service 22,881 60,000,789 7,050,855 50,499,417 117,573,942 Capital outlay 110,888 33,000 143,888 T olal expenditures 19,585,623 385,793,539 30,725,350 30,395,314 54,943,128 60,300,789 7,050,855 50,499,417 19,588,006 658,882,021 Excess (deficiency) of revenues over (under) expendilures (16,014,879) ( 156 ,505 ,965) 5,889,095 (18,607,906) Other financing sources (uses)· 23,087,226 (58,292,297) (5,010,580) (44,774,828) 4,690,992 (265,539,142) Debt issuance Oiscoun1 on debt issuance 638,854,602 638,854,602 (2,433,315) (2,433,315) Premium on debt issuance 38,328,775 38,328,775 Capita! lease 78,606 78,606 Transfers in 13,686,031 224,964,163 188,123 9,413,795 60,001,951 172,817,272 916,400 481,987,735 Transfers out (26,096,631) (793,907) (12,452,874) (9,397,766) (429,036,145) (2,955,523) (1,254,889) (481,987,735) Total other financing sources (uses) 13,764,637 198,867,532 188,123 8,619,888 (12,452,874) 50,604,185 245,713,917 169,861,749 (338,489) 674,828,668 Net change in fund balances (2,250,242) 42,361,567 6,077,218 (9,988,018) 10,634,352 (7,688,112) 240,703,337 125,086,921 4,352,503 409,289,526 Fund balances at beginning of year 12,840,351 294,464,723 27,356,273 67,306,789 105,242,957 36,097,201 4,477,116 11,225,363 63,176,122 622,186,895 Fund balances at end of year $ 10,590, 109 $ 336,826,290 $ 33,433,491 $ 57,318,771 $ 115,877,309 $ 28,409,089 $ 245,180,453 $ 136,312,284 $ 67,528,625 $ 1,031,476,421 See notes to financial sratements 20 133 • • • 134 • • • 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, 2014 Net change in fund balances· Total governmental funds (page 20) 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 Net gain on sale of assets Depreciation expense Net adjustments Revenues in the statement of activities that do not provide current financial resources are not reported as revenues in the funds. The issuance of long-term debt (e.g., bonds) provides current financial resources to governmental 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 sales tax revenue bonds Issuance of toll revenue bonds Discount on toll revenue bonds Premium on sales tax revenue bonds Amortization of sales tax revenue bonds premium Amortization of sales tax revenue bonds discount Amortization of toll revenue bonds discount Capital lease Capital lease payments Change in accrued interest Change in accretion of capital appreciation bonds Multi-Species Habitat Conservation Plan funding liability Remediation liability 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 governmental funds. The adjustment combines the net changes of the compensated absences. Change in net position of governmental activities (page 17) See notes to financial statements 21 135 $ 409,289,526 43,448,849 14,574 (3,453,421) 40,010,002 (443,867) 60,000,000 7, 100,000 (462,200,000) (176,654,602) 2,433,315 (38,328, 775) 2, 175,262 (93,638) (66,577) (78,606) 12,883 (6,062,031) (3,467,527) (18,000,000) (1,576,406) (634,806,702) 44,379 $ (185,906,662) • • • 136 • • • Riverside County Transportation Commission Notes to Financial Statements June 30, 2014 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 (TOA) by the State of California (State). The LTF is administered by the Commission on behalf of the County. The purpose of this program is to allocate funds for public transportation needs, local streets and roads, bicycle and pedestrian facilities, and multimodal transportation terminals. The STA program allocates funds for public transportation purposes to those geographic areas with special public transportation needs, which cannot be met otherwise. On November 8, 1988, the Commission was empowered by the voters of the County, under Ordinance No. 88-1 (1989 Measure A), to collect a one-half of one percent sales tax for the purpose of improving the transportation system of the County. Measure A was enacted, in part, pursuant to the provisions of Division 25 (commencing with Section 240000) of the California Public Utilities Code and Section 7252.22 of the Revenue and Taxation Code. On November 12, 2002 Riverside County's voters approved a 30-year renewal of Measure A under Ordinance No. 02-001 (2009 Measure A). The voter action ensured the replacement of the 1989 Measure A program when it expired in 2009 with a new 30-year program that 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 consequently are not under the direction of the Commission. Financial information for these agencies is not included in the accompanying financial statements . 22 137 Riverside County Transportation Commission Notes to Financial Statements June 30, 2014 Note 1. Summary of Significant Accounting Policies, Continued Basis of presentation: The Commission's basic financial statements consist of government-wide financial statements, including a statement of net position and a statement of activities, and fund financial statements which provide a more detailed level of financial information. Government-wide statements: The statement of net position and the statement of activities report information on all of the activities of the Commission. The effect of interfund activity has been removed from these statements. These statements report governmental 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 Measure A Coachella Valley and Transportation Uniform Mitigation Fee Special Revenue funds and the Commercial Paper Capital Projects 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 TOA 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 Bonds Capital Projects Fund: This fund records proceeds from the issuance of sales tax and toll revenue bonds and the use of these proceeds for capital projects included in the 2009 Measure A Debt Service Fund: This fund accounts for the resources accumulated and payments made for principal and interest on the sales tax and toll revenue bonds. 23 138 • Riverside County Transportation Commission Notes to Financial Statements June 30, 2014 • Note 1. Summary of Significant Accounting Policies, Continued • • 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 in September 1995, and most recently amended in June 2012. The investment policy complies with, or is more restrictive than, applicable state statutes. This investment policy requires the Commission's investment program to meet three criteria in the order of their importance: safety, liquidity, and return on investments. Investments of bond and commercial paper proceeds as permitted by the applicable debt documents are maintained by U.S. Bank and Bank of New York Mellon, as custodial banks, 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 is summarized in the table below; investments held by bond trustees are governed by the provisions of the Commission's bond indentures. Other investments permitted by the California Government Code (Code) are permitted but only with prior Board authorization; securities that could result in zero interest accrual if held to maturity are ineligible. Maximum Maximum Percentage Maximum Investment Authorized Investment Tyee Effective Maturi!}' of Portfolio in One Issuer Minimum Ratings United States (U.S.) Treasury obligations 5 years No limit No limit None Federal agency securities 5 years No limit No limit None State/Municipal obligations 3 years 15% No limit Aa3/AA- Repurchase agreements 30 days No limit None A U.S. corporate debt 5 years 20% None Aa3/AA- Commercial paper 270 days 30% None A Banker's acceptances 180 days 40% 30% None Money market mutual funds Not applicable 20% None None Riverside County Pooled Investment Fund (RCPIF) Not applicable No limit Set by RCPIF Not applicable Local Agency Investment Fund Not applicable No limit Set by LAIF Not applicable Negotiable certificates of deposit 180 days 15% None P-1/A-1/F-1 Federally insured certificates of deposit 1 year 20% None Not applicable Collateralized certificates of deposit 1 year 15% None Not applicable Time deposits 5 years No limit None Not applicable 24 139 Riverside County Transportation Commission Notes to Financial Statements June 30, 2014 Note 1. Summary of Significant Accounting Policies, Continued Subsequently in September 2014, the Commission amended the investment policy to include mortgage and asset-backed securities; to increase the maximum maturity for state/municipal obligations to 5 years; and to modify the maximum percentages of portfolio limits for state/municipal obligations to 25%, U.S. corporate debt to 25%, and commercial paper to 25%. 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, federal agency, municipal, corporate, and commercial paper securities are carried at fair value based on quoted market prices. Money market mutual funds are carried at fair value based on each fund's share price. Bank balances are secured by the pledging of a pool of eligible securities to collateralize the Commission's deposits with the bank in accordance with the Code. Accounts receivable: Accounts receivable consist primarily of Measure A and L TF sales tax revenues from the State Board of Equalization on all taxable sales within the County of Riverside, California through June 30, 2014. • lnterfund 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 and condemnation payments with the State, which are related primarily to the SR-91 corridor improvement project, 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 for bonds. Under the related bond resolutions and indentures, any remaining bond proceeds are restricted for the use of future construction improvements to the respective projects, for debt service, or for reserve requirements in accordance with applicable debt covenants. Capital assets: Capital assets consisting of land and land improvements; construction in progress; construction and rail easements; buildings and equipment held for resale; rail stations; office improvements; 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 (Caltrans), are included in highway program expenditures. Infrastructure consisting primarily of highway construction and right of way acquisition is generally not recorded as a capital asset, because the Commission does not have title to such assets or rights of way. However, costs related to the development of tolled express lanes are recorded as land and 25 140 • • • • Riverside County Transportation Commission Notes to Financial Statements June 30, 2014 Note 1. Summary of Significant Accounting Policies, Continued land improvements and construction in progress. The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend the life of the asset are not capitalized. Rail stations, office improvements, furniture and equipment, and vehicles of the primary government are depreciated using the straight-line method over the following estimated useful lives: Asset Type Rail stations Office improvements Office furniture and equipment Vehicles Useful Life 10 to 30 years 7 to 10 years 3 to 5 years 5 years Project costs that have been incurred for the tolled express lanes projects, consisting of the SR-91 corridor improvement project and the Interstate 15 (1-15) corridor improvement project, and are expected to remain the Commission's assets, will be capitalized as intangible assets that will be amortized over the life of the service concession arrangement with Caltrans. These capitalizable costs have been accumulated in the capital assets as land and land improvements and construction in progress. The costs of the tolled express lanes projects that are not capitalized are expensed as incurred based on management's estimation which is generally based upon the allocation of Measure A and other funding sources, including toll-supported debt. As of June 30, 2014, the estimated project costs incurred but not capitalized related to the SR-91 corridor improvement project is approximately 85% of right of way and 60% of engineering and construction costs, or approximately $80,300,000 and $165, 100,000, respectively. All costs related to the 1-15 corridor improvement project are considered capitalizable . Changes in accounting estimates result from new information or subsequent development and, accordingly, better insight or improved judgment. Subsequent to June 30, 2013, the Commission changed its policy to capitalize project costs that are expected to remain the Commission's assets after the project is completed. As a result of this policy change, the Commission expensed approximately $100,800,000 of project costs during the year ended June 30, 2014 that were capitalized through June 30, 2013. The provisions made to estimate the noncapitalizable costs for the SR-91 corridor improvement project reflect a change in accounting estimate during the fiscal period. A change in estimate is not accounted for by changing amounts reported in financial statements of prior periods; rather, it is a change that affects the current and future periods. Furthermore, the effect of prior period accumulated costs of approximately $100,800,000 is considered insignificant when compared to the aggregate total of the Commission's assets of $1,645,296,638. · 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. 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 workers' compensation; torts; theft of, damage to, or destruction of assets; and errors or omissions. The Commission protects itself against such losses by a balanced program of risk retention, risk transfers, and the purchase of commercial insurance. Loss exposures retained by the Commission are treated as normal expenditures and include any loss contingency not covered by the Commission's purchased insurance policies. Construction projects and rail properties are protected through a combination of commercial insurance, insurance required of Commission consultants, and a self-insurance fund established by the Southern California Regional Rail Authority (SCRRA). Settled claims have not exceeded insurance coverage in any of the past three fiscal years. 26 141 Riverside County Transportation Commission Notes to Financial Statements June 30, 2014 Note 1. Summary of Significant Accounting Policies, Continued Deferred outflows of resources: 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 adoption of a resolution of the Board. These committed amounts cannot be used for any other purpose unless the Commission removes or changes the specified use through the same type of formal action taken to establish the commitment. • Assigned fund balances comprise amounts intended to be used 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 balance is residual positive net resources of the General Fund in excess of what can properly be classified in one of the other four categories. When both restricted and unrestricted resources are available for an incurred expenditure, it is the Commission's policy to spend restricted resources first and then unrestricted resources, as necessary. When unrestricted resources are available for an incurred expenditure, it is the Commission's policy to use committed amounts first, followed by assigned amounts, and then unassigned amounts. In June 2012, the Commission adopted a resolution to establish a policy on reporting and classifying fund balance in the General fund. Net position: In the government-wide financial statements, net position represents the difference between assets and deferred outflows of resources 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. 27 142 Riverside County Transportation Commission Notes to Financial Statements June 30, 2014 • Note 1. Summary of Significant Accounting Policies, Continued • • 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, 199,094 allocated to Measure A in 2014 were less than 1 % of revenues and in compliance with the law. Note 2. Cash and Investments Cash and investments at June 30, 2014 consist of the following: Cash in bank Petty cash RCPIF LAIF Investments with fiscal agents Total cash and investments Cash $37,234,520 1,018 $ 37,235,538 Unrestricted Investments $ - 533,418,645 3,628,338 $ 537,046,983 $ $ Restricted Total Investments Total 37,234,520 $ -$ 37,234,520 1,018 1,018 533,418,645 533,418,645 3,628,338 3,628,338 384,142,126 384, 142, 126 57 4,282,521 $ 384,142,126 $ 958,424,647 Restricted investments at June 30, 2014 represent investments held by bond trustees for project costs and debt service. Interest rate risk: While the Commission does not have a formal policy related to the interest rate risk of investments, the Commission's investment policy follows the Code as it relates to limits on investment maturities as a means of managing exposure to fair value losses arising from increasing interest rates. In accordance with the Commission's investment policy, restricted investments are invested in accordance with the maturity provisions of the specific bond indenture, which may extend beyond five years. As of June 30, 2014, the Commission had the following investments: Weighted Interest Rate Average Investments Fair Value Principal Range Maturity Range Maturity (Year) Unrestricted: RCPIF $ 533,418,645 $533,692,695 0.33% -0.42% 1 day -5 years 481 days or 1.37 LAIF 3,628,338 3,627,254 0.22% -0.26% 232 -257 days 257 days or .70 Total unrestricted investments $ 537,046,983 $537,319,949 Unrestricted investment portfolio weighted average 1.37 Restricted: Commercial paper $151,505,098 $146,412,386 0.301%-1.917% 7/1/14 -8/22/14 0.105 Corporate notes 81,685,462 83,393,133 0.255%-1.740% 8/1/14-11/6/17 1.879 Money market mutual funds 4,649,148 4,649,149 0.000%-0.040% 7/1/2014 0.005 Mortgage and asset-backed 47,522,625 48,140,476 0.214%-0.706% 6/15/15 -11/15/18 3.585 securities Municipal bonds 17,468,212 17,334,163 0.463%-1.261% 12/1/15-11/1/20 3.679 U.S. agency securities 35,668,305 35,533,362 0.062% -3.105% 7/15/14 -7/20/41 6.666 U.S. Treasury obligations 39,648,276 39,368,755 0.072% -2.415% 1/31/16 -5/15/23 3.792 Variable rate notes 5,995,000 5,995,000 0.110%-0.130% 11/1/20 -4/1/46 14.755 Total restricted investments $ 384,142,126 $380,826,424 Restricted investment portfolio weighted average 2.314 28 143 Riverside County Transportation Commission Notes to Financial Statements June 30, 2014 Note 2. Cash and Investments, Continued The weighted average maturity is calculated using the investment's effective duration weighted by the investment's fair value. As of June 30, 2014, mortgage and asset-backed securities totaled $47,522,625. The underlying assets are consumer receivables that include credit cards, auto/equipment, and home loans. The securities have a fixed interest rate and are rated AAA/Aaa by at least two of the three nationally recognized statistical rating organizations, except for $1 ,000,000 which is rated A2 by Moody's Investors Service (Moody's) and AA+ by Standard & Poor's Rating Service (S&P). As of June 30, 2014, the Commission had the following variable rate note investments: Investments Wisconsin Housing and Economic Development Authority New Hampshire Department of Labor Total variable rate notes Fair Value $ 1,805,000 4,190,000 $ 5,995,000 Coupon Type Variable Variable Coupon Reset Date Weekly Weekly These investments are highly sensitive to interest rate fluctuations which affect expected cash flows and, accordingly, fair value. 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 $39,803,667 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: The Commission's investment policy as well as the specific bond indentures set minimum acceptable credit ratings for investments from any of the three nationally recognized statistical rating organizations. The following is a summary of the credit quality distribution and concentration of credit risk by investment type as a percentage of each category's fair value at June 30, 2014; securities denoted as NR are not rated by one of the nationally recognized statistical rating organizations. Investments Mood ts S&P Fitch % of Portfolio RCPIF A a a/bf NR AAA/V1 57.91% LAIF NR NR NR 0.39% Commercial paper Various P2 A1 F2 0.82% Various P2 A2 F2 11.67% Various P2 A2 NR 3.12% Various P2 A2 F1 0.33% Various P3 A2 F2 0.49% Corporate notes Notes A1 A+ A+ 0.11% Notes A1 AA+ NR 0.90% Notes A2 A A 0.66% Notes A2 A NR 0.05% Notes A2 A-A+ 0.69% Notes A2 A+ AA-0.38% 29 144 • • • • • • Riverside County Transportation Commission Notes to Financial Statements June 30, 2014 Note 2. Cash and Investments, Continued Investments Moody's S&P Fitch % of Portfolio Notes A3 A A+ 0.42% Notes A3 A-A 0.85% Notes A3 A-A-0.33% Notes A3 A-BBB+ 0.63% Notes A3 A-NR 0.12% Notes Aa1 AA AA 0.07% Notes Aa1 AA-AA 0.11% Notes Aa1 AA-AA-0.09% Notes Aa1 AA+ NR 0.76% Notes Aa2 AA-NR 0.39% Notes Aa3 AA-A 0.63% Notes Aa3 AA-A+ 0.05% Notes Aa3 AA-AA 0.22% Notes Aa3 AA-AA-0.47% Notes Aa3 AA-NR 0.22% Notes Baa1 A BBB+ 0.29% Notes Baa1 A-A 0.32% Notes Baa2 A-A 0.12% Money market mutual funds Funds Aaa AAA AAA 0.41% Funds NR NR NR 0.09% Mortgage and asset-backed securities Securities A2 AA+ NR 0.11% Securities NR AAA AAA 0.17% Securities Aaa AAA AAA 0.99% Securities Aaa AAA NR 0.90% Securities Aaa NR AAA 2.99% Municipal bonds City of Dallas Aa1 AA+ NR 0.31% Hamilton County Aa2 AA+ NR 1.10% New York City Aa2 AA AA 0.14% New Hampshire Department of Labor NR AA NR 0.35% U.S. agency notes FNMA and GMNA Aaa AA+ AAA 3.82% Federal Home Loan Banks P-1 A-1+ NR 0.06% U.S. Treasuries Aaa AA+ AAA 4.30% Variable rate notes Notes NR AA NR 0.46% Notes Aaa NR NR 0.19% Total 100.00% Concentration of credit risk: The Commission's investment policy places a limit of 10% on the amount of investment holdings with any one non-U.S. Government or non-federal agency issuer. As of June 30, 2014, the Commission did not have investments in any one issuer that represent more than 5% of the Commission's total investments. Note 3. Advances The Commission has approved interest-bearing advances to other governments, 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 30 145 Note 3. Advances, Continued Riverside County Transportation Commission Notes to Financial Statements June 30, 2014 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 on or before December 1, 2019; and the final maturities of the CVAG advances are due on or before September 1, 2029. Interest rates range from .910% to 7.307%, excluding the portion of cash subsidy payments (as discussed in Note 6) that may be received by CVAG to reduce its repayment obligations. The available advances to CVAG are $0 as of June 30, 2014. The outstanding advances, including capitalized interest of $1,764,038, as of June 30, 2014 were as follows: City of Blythe City of Canyon Lake City of Indio Coachella Valley Associated Governments Total advances receivable Note 4. Capital Assets Capital assets activity for the year ended June 30, 2014 was as follows: Balance Additions/ Jul~ 1, 2013 Transfers · Governmental activities Capital assets not being depreciated: Land and land improvements $ 215,548,472 $ 13,382,182 Construction in progress 169,644,491 116,680,685 Rail operating easements 39,484, 143 14,354,999 Construction easements 16,564 1,599,601 Buildings and equipment held for resale 61,832 Total capital assets not being depreciated 424, 755,502 146,017,467 Capital assets being depreciated: Rail stations 98,812,574 Office improvements 72,782 Office furniture, equipment and vehicles 1,526,822 127,980 Total capital assets being depreciated 100,412,178 127,980 Less accumulated depreciation for: Rail stations (36,436, 603) (3,317,926) Office improvements (66,446) (2,303) Office furniture, equipment and vehicles (1,203,282) (133, 192) Total accumulated depreciation (37,706,331) (3,453,421) Total capital assets being depreciated, net 62,705,847 (3,325,441) Governmental activities capital assets, net $ 487,461,349 $ 142,692,026 The change in estimate is discussed in Note 1. 31 146 Retirements/ Transfers/ Deletions $ (1,820, 192) (61,832) (1,882,024) (117,130) (117,130) 117,130 117,130 $ (1,882,024) $ 1,061,234 442,175 3,025,333 29,877,543 $ 34,406,285 Change in Estimate $ (43,300,000) (57,500,000) (100,800,000) (100,800,000) Balance June 30, 2014 $ 183,810,462 228,825, 176 53,839,142 1,616, 165 468,090,945 98,812,574 72,782 1,537,672 100,423,028 (39,754,529) (68,749) (1,219,344) (41,042,622) 59,380,406 $ 527,471,351 • • • Riverside County Transportation Commission Notes to Financial Statements June 30, 2014 • Note 4. Capital Assets, Continued • • Depreciation expense was charged to functions/programs of the Commission's governmental activities during the year ended June 30, 2014 as follows: General government Commuter rail Commuter assistance Highway Planning and programming Total depreciation expense Note 5. lnterfund Transactions $ 71,652 3,332,992 35,692 717 12,368 $ 3,453,421 Due from/to other funds: The composition of balances related to due from other funds and due to other funds at June 30, 2014 is as follows: Receivable Fund Payable Fund Amount Explanation General fund Nonmajor Governmental funds $ 7,570 Fringe benefits allocation General fund Nonmajor Governmental funds 338,488 Administrative cost allocation General fund Transportation Uniform Mitigation 793,907 Administrative cost allocation Fee Special Revenue fund General fund Transportation Uniform 17,093 Fringe benefits allocation Mitigation Fee Special Revenue fund General fund Measure A Western County 189,909 Fringe benefits allocation Special Revenue fund General fund Measure A Western County 100,760 Reimbursement for rail station costs Special Revenue fund General fund Measure A Coachella Valley 20 Fringe benefits allocation Special Revenue fund Measure A Western County Bonds Capital Projects fund 14,011,872 Reimbursement for highway capital costs Special Revenue fund Measure A Coachella Valley Debt Service fund 573,505 Advance loan payment adjustment Special Revenue fund Transportation Uniform Measure A Western County 7,337,848 Reimbursement for regional arterial Mitigation Fee Special Special Revenue fund project costs Revenue fund Commercial Paper Capital Nonmajor Governmental funds 39,369 Advance loan payment adjustment Projects fund Commercial Paper Capital Measure A Coachella Valley 475,219 Advance loan payment adjustment Projects fund Special Revenue fund Bonds Capital Projects fund Measure A Coachella Valley 67,894 Advance loan payment adjustment Special Revenue fund Total due from/to other funds $ 23,953,454 32 147 Riverside County Transportation Commission Notes to Financial Statements June 30, 2014 Note 5. lnterfund Transactions, Continued lnterfund transfers: During 2014, interfund transfers were as follows: Transfers Out Transfers In Amount Ex~lanation Measure A Western County General fund $ 100,761 Allocation for commuter rail costs Special Revenue fund Measure A Western County Transportation Uniform 9,413,795 Highway project costs reimbursements Special Revenue fund Mitigation Fee Special Revenue fund Measure A Western County Debt Service fund 16,580,124 Debt service funding related to highway projects for Special Revenue fund Western County and to loan agreements for Western County jurisdictions Measure A Western County Commercial Paper Capital 1,951 Escrow refunds related to highway project costs Special Revenue fund Projects fund reimbursements Transportation Uniform General fund 793,907 Administrative cost allocation Mitigation Fee Special Revenue fund Local Transportation Fund General fund 12,452,874 Allocation for administration, planning and programming, commuter rail operating and station maintenance, and grade separation costs Commercial Paper Capital Debt Service fund 3,469,494 Debt service related to loan agreements for Projects fund Coachella Valley and Palo Verde Valley jurisdictions Commercial Paper Capital Measure A Western County 5,928,272 Highway project costs reimbursements Projects fund Special Revenue fund Bonds Capital Projects fund Measure A Western County 216,268,491 Highway project costs reimbursements Special Revenue fund Bonds Capital Projects fund Debt Service fund 2 Interest earnings Bonds Capital Projects fund Debt Service fund 152,767,652 Transfer of bond proceeds related to capitalized interest and debt service reserve Bonds Capital Projects fund Commercial Paper Capital 60,000,000 Transfer of bond proceeds for retirement of Projects fund commercial paper notes Debt Service fund Measure A Western County 2,767,400 Transfer of cash subsidies available after debt Special Revenue fund service payment Debt Service fund Measure A Coachella Valley 188,123 Transfer of share of cash subsidy related to CVAG Special Revenue fund loan agreement Nonmajor Governmental General fund 338,489 Administrative cost allocation funds Nonmajor Governmental Nonmajor Governmental 916,400 Call box program augmentation of freeway service funds funds patrol operations Total transfers $481,987,735 33 148 • • • • • • Riverside County Transportation Commission Notes to Financial Statements June 30, 2014 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, 2014: Balance Additions I Balance July 1, 2013 Accretion Reductions June 30, 2014 Sales tax revenue bonds: 2009 Bonds $ 161,400,000 $ $ (7, 100,000) $ 154,300,000 2010 Bonds 150,000,000 150,000,000 2013 Bonds 462,200,000 462,200,000 Toll revenue bonds:' 2013 Bonds 180, 122, 129 180, 122, 129 Total bonds payable 311,400,000 642,322, 129 (7,100,000) 946,622,129 Less: Sales tax revenue (964,492) 93,638 (870,854) bonds discount Less: Toll revenue bonds (2,433,315) 66,577 (2,366,738) discount Add: Sales tax revenue 38,328,775 (2, 175,262) 36,153,513 bonds premium Total bonds payable, net 310,435,508 678,217 ,589 (9, 115,047) 979,538,050 Commercial paper notes 60,000,000 (60,000,000) MSHCP funding liability 18,000,000 18,000,000 Remediation liability 1,642,000 (65,594) 1,576,406 Capital lease 6,289 78,606 (12,884) 72,011 Compensated absences 675,176 91,665 (136,044) 630,797 Total long-term obligations $ 371,116,973 $698,029,860 $ (69,329,569) $ 999,817,264 Due Within One Year $ 7,400,000 7,400,000 (89,756) (73,073) 2,175,262 9,412,433 3,000,000 1,576,406 11,654 322,867 $ 14,323,360 The Commission has pledged a portion of future sales tax revenues through maturities of the bonds to repay $766,500,000 in sales tax revenue bonds payable issued in October 2009 (2009 Bonds), November 2010 (2010 Bonds), and July 2013 (2013 Sales Tax Bonds) and outstanding at June 30, 2014. The bonds and commercial paper notes are payable solely from the 2009 Measure A sales tax revenues on a senior and subordinate lien basis, respectively. Annual principal and interest payments on the bonds and notes, after utilization of capitalized interest deposits for the 2013 Sales Tax Bonds through December 1, 2017, are expected to require less than 36% of 2009 Measure A revenues. For the current year, interest paid on the bonds and commercial paper notes was $43,399,417 and $789, respectively. Cash subsidies of $2,767,401 related to the bonds were received from the U.S. Treasury during the current year and were recorded as intergovernmental revenues. Additionally, the toll revenue bonds issued in July 2013 (2013 Toll Bonds) are secured by a senior lien on the trust estate, which consists primarily of toll revenues and account revenues less operating and maintenance expenses of the RCTC 91 Express Lanes, which are expected to open in July 2017. The Commission also executed a Transportation Infrastructure Finance and Innovation Act (TIFIA) loan agreement for up to $421,054,409 in July 2013 secured on a subordinate basis to the 2013 Toll Bonds, except in the case of any bankruptcy related event, as defined in the toll indenture and TIFIA loan agreement, when the TIFIA loan automatically becomes a senior lien obligation. The TIFIA loan is evidenced by a toll revenue bond issued pursuant to the toll bond indentures; however, no amounts are outstanding under the TIFIA loan at June 30, 2014. 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, 2014: 34 149 -------- Riverside County Transportation Commission Notes to Financial Statements June 30, 2014 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. 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 secured by Standby Bond Purchase Agreements (SBPAs), as amended in July 2011, with JPMorgan Chase Bank (JPMorgan) which expire in September 2014; however, in September 2014, the SBPAs with JP Morgan were substituted with SBPAs with Bank of Tokyo, which expire in March 2019. Under the SBPAs with Bank of Tokyo, 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, Bank of Tokyo is required to purchase the 2009 Bonds. Any of the 2009 Bonds purchased by Bank of Tokyo 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 Bank of Tokyo within 180 days following Bank of Tokyo'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 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. (Barclays), Stifel, Nicolaus & Company (Stifel), as assigned by E.J. De La Rosa & Co., Inc., and Backstrom Mccarley Berry & Co., LLC (Backstrom) are the remarketing agents for the 2009 Bonds Series A, B, and C, respectively. In September 2014 Backstrom resigned as remarketing agent. In connection with the substitution of the SBPAs, the Commission terminated the remaining remarketing agent agreements and executed new remarketing agreements with Stifel for the 2009 Bonds Series A and Barclays for the 2009 Bonds Series B and C. 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 Commission is required to pay to Bank of Tokyo an annual commitment fee for the SBPAs on 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 on 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 prior SBPAs. Outstanding $154,300,000 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 variable interest rates at June 30, 2014 and excluding related interest rate swap payments, throughout the term of the bonds are as follows: Year Ending June 30 Principal Interest Total 2015 $ 7,400,000 $ 91,316 $ 7,491,316 2016 7,800,000 87,174 7,887, 174 2017 8,100,000 82,321 8, 182,321 2018 8,500,000 77,522 8,577,522 2019 8,900,000 72,490 8,972,490 2020-2024 50,700,000 279,121 50,979,121 2025-2029 62,900,000 114,891 63,014,891 $ 154,300,000 $ 804,835 $ 155,104,835 35 150 • • • • • • Riverside County Transportation Commission Notes to Financial Statements June 30, 2014 Note 6. Long-term Obligations and Subsequent Events, Continued If the SBPAs with Bank of Tokyo are not renewed or replaced upon expiration in March 2019 and the Commission does not · otherwise refinance the 2009 Bonds and the remarketing agent is unable to resell the bonds that are tendered for redemption, the annual debt service requirements for the succeeding fiscal years will be accelerated over a five year term based on an assumed interest rate of 9.0%. 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. 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, but is not guaranteed, to receive a cash subsidy from the U.S. Treasury equal to 35% of the interest payable on the BABs or 45% of the interest payable on the Series B Outstanding bonds additionally designated as RZEDBs. $ 150,000,000 During 2014 the cash subsidy related to the 2010 Bonds that was received from the U.S. Treasury was approximately $214,700 less than the amount anticipated. The subsidy reduction resulted from federal sequestration cuts of 7.2% for federal fiscal year ending September 30, 2015. The federal sequestration cuts may continue for an unknown duration . In accordance with the bond maturity schedule, and assuming no subsidy reduction, annual debt service requirements to maturity for the 2010 Bonds payable throughout the term of the bonds are as follows: Year Ending June 30 2015 2016 2017 2018 2019 2020-2024 2025-2029 2030-2034 2035-2039 $ Principal 66,800,000 83,200,000 $ 150,000,000 Interest $ 9,530,500 9,530,500 9,530,500 9,530,500 9,530,500 47,652,600 47,652,600 41,017,800 17,452,200 $ 201,427,700 Total $ 9,530,500 9,530,500 9,530,500 9,530,500 9,530,500 47,652,600 47,652,600 107,817,800 100,652,200 $ 351,427,700 $ $ Subsidy (2,982,100) (2,982, 100) (2,982, 100) (2,982,100) (2,982, 100) (14,910,600) (14,910,600) (14,551,500) (7,386,000) (66,669,200) 2013 Sales Tax Revenue Bonds (Limited Tax Bonds), Series A (Tax-exempt): In July 2013, the Commission issued $462,200,000 principal amount of serial bonds at a premium of $38,328,775 to retire all, or $60,000,000, of the outstanding principal amount of commercial paper notes, fund a portion of the SR-91 corridor improvement project costs, pay capitalized interest during construction, and pay cost of issuance. The $286,065,000 of serial bonds mature in annual installments ranging from $12,090,000 to $24,450,000 on various dates from June 1, 2018 through June 1, 2033 at interest rates ranging from 5.00 to 5.25%. The $176,135,000 of term bonds is due on June 1, 2039 with annual sinking fund payments ranging from Total, net $ 6,548,400 6,548,400 6,548,400 6,548,400 6,548,400 32,742,000 32,742,000 93,266,300 93,266,200 $ 284,758,500 Outstanding $25,735,000 to $33,235,000 on June 1, 2034 through June 1, 2039 at an interest rate of 5.25%. $ 462,200,000 36 151 Riverside County Transportation Commission Notes to Financial Statements June 30, 2014 Note 6. Long-term Obligations and Subsequent Events, Continued In accordance with the bond maturity schedule, annual debt service requirements to maturity for the 2013 Sales Tax Bonds payable throughout the term of the bonds are as follows: Year Ending June 30 Principal Interest Total 2015 $ $ 24,041,100 $ 24,041,100 2016 24,041, 100 24,041, 100 2017 24,041,100 24,041, 100 2018 22,960,000 24,041,100 47,001,100 2019 12,090,000 22,893,100 34,983, 100 2020-2024 70,130,000 104,772,100 174,902,100 2025-2029 90,165,000 84,734,500 174,899,500 2030-2034 116,455,000 58,446,900 174,901,900 2035-2039 150,400,000 24,496,200 174,896,200 $ 462,200,000 $ 391,507 ,200 $ 853,707,200 Toll revenue bonds payable: In July 2010, the Commission authorized the issuance and sale of not to exceed $900 million of toll revenue bonds related to the SR-91 Corridor Improvement Project. 2013 Toll Revenue Bonds, Series A (Current Interest Obligation): In July 2013, the Commission issued $123,825,000 principal amount of serial current interest bonds (CIBs) at a discount of $2,433,315 to fund a portion of the SR-91 corridor improvement project, pay capitalized interest during construction, fund a debt service reserve fund, fund an initial amount for an Operations and Maintenance Fund, and pay costs of issuance. The CIBs consist of a serial bond maturing on June 1, 2044 in the amount of $39,315,000 at an interest rate of 5.75% and a term bond due on June 1, 2048 in the amount of $84,510,000 with annual Outstanding sinking funds payments of $42,255,000 on June 1, 2047 and June 1, 2048 at an interest rate of 5.75%. $ 123,825,000 In accordance with the bond maturity schedule, annual debt service requirements to maturity for the 2013 Toll Bonds CIBs payable throughout the term of the bonds are as follows: Year Ending June 30 Principal Interest Total 2015 $ $ 7,119,900 $ 7,119,900 2016 7,119,900 7,119,900 2017 7, 119,900 7, 119,900 2018 7,119,900 7, 119,900 2019 7,119,900 7, 119,900 2020-2024 35,599,700 35,599,700 2025-2029 35,599,700 35,599,700 2030-2034 35,599,700 35,599,700 2035-2039 35,599,700 35,599,700 2040-2044 39,315,000 35,599,700 74,914,700 2045-2048 84,510,000 17,007,600 101,517,600 $ 123,825,000 $ 230,605,600 $ 354,430,600 37 152 • • • • • • Riverside County Transportation Commission Notes to Financial Statements June 30, 2014 Note 6. Long-term Obligations and Subsequent Events, Continued 2013 Toll Revenue Bonds, Series A (Capital Appreciation Obligation): In July 2013, the Commission issued $52,829,602 principal amount of serial capital appreciation bonds (CABs) to fund a portion of the SR- 91 corridor improvement project, pay capitalized interest during construction, fund a debt service reserve fund, fund an initial amount for an Operations and Maintenance Fund, and pay costs of issuance. The CABs will not pay current interest as interest will be compounded commencing December 2013 semiannually and paid at maturity. Therefore, the CABs will increase in value, or accrete, by the accumulation of such compounded interest from its initial principal amount to the maturity value in installments ranging from $3,440,000 to $34,220,000 on various dates from June 1, 2022 through June 1, 2043. Interest rates and Outstanding yield to maturity range from 5.30% to 7.15%. During 2014, the accretion amount was $3,467,527. $ 56,297,129 In accordance with the bond maturity schedule, annual debt service requirements to maturity for the 2013 Toll Bonds CABs payable throughout the term of the bonds are as follows: Year Ending June 30 Principal Accreted Interest 2022-2023 $ 5,494,800 $ 3,655,200 $ 2024-2028 18,364,700 22,490,300 2029-2033 15,215,000 34,850,000 2034-2038 1,963,300 6, 196,700 2039-2043 11,791,800 78,458,200 $ 52,829,600 $ 145,650,400 $ TIFIA Loan Agreement: In July 2013, the Commission executed a TIFIA loan of up to $421,054,409, which proceeds, when drawn upon, will finance a portion of the costs for the SR-91 corridor improvement project. During construction and for a period of up to five years following substantial completion, interest is compounded and added to the initial TIFIA loan. The TIFIA loan requires mandatory debt service payments at a minimum and scheduled debt service payments to the extent additional funds are available. TIFIA debt service payments are expected to commence on December 1, 2021, which is five years after substantial completion of the SR-91 corridor improvement project, through June 1, 2051. The interest rate of the TIFIA Total 9,150,000 40,855,000 50,065,000 8,160,000 90,250,000 198,480,000 loan is 3.47%. There were no draws on the TIFIA loan during 2014. $ ====== Pursuant to the toll indenture and TIFIA loan agreement, the Commission will deposit with the trustee $136,451,515 into an equity account for payment of SR-91 corridor improvement project costs. Such deposits are due annually in amounts ranging from $29,501,918 to $34,983, 199 through 2017. The Commission expects to make such deposits or direct payments from 2009 Measure A revenues; the fiscal 2014 contribution requirement of $36,983,199 was satisfied with state reimbursement revenues of $39, 173,000. These annual equity contribution payments occur during the period in which interest is capitalized on the 2013 Sales Tax Bonds. In connection with the issuance of the 2013 Toll Bonds consisting of the CIBs and CABs, a debt service reserve of $17,665,460 and an Operations and Maintenance Fund of $3, 137,666 were established. Additionally, the toll indenture and TIFIA loan agreement require the Commission to establish a subordinate obligations reserve fund of $20,000,000 with Measure A sales tax revenues no later than July 1, 2019, to the extent that the proceeds from the sales of excess right of way acquired by the Commission in connection with the SR-91 corridor improvement project are insufficient. Commercial paper notes payable: In February 2005, the Commission authorized the issuance of tax-exempt commercial paper notes in an amount not to exceed $200,000,000 for the primary purpose of financing right of way and mitigation land acquisition and project development costs of capital projects under the 2009 Measure A. The Commission reduced the authorization to $60,000,000 in September 2013. During fiscal 2013 the Commission issued commercial paper notes aggregating $60,000,000, which were retired in July 2013 in connection with the financing for the SR-91 corridor improvement project. As of June 30, 2014, there were no outstanding commercial paper notes. 38 153 Riverside County Transportation Commission Notes to Financial Statements June 30, 2014 Note 6. Long-term Obligations and Subsequent Events, Continued 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 irrevocable direct draw letters of credit and reimbursement agreements of $60,750,000, for an aggregate of $121,500,000, with Union Bank, N.A. (Union Bank) and The Bank of Tokyo-Mitsubishi UFJ, Ltd., acting through its New York Branch (Bank of Tokyo), as credit and liquidity support for the commercial paper notes through October 2014. The Commission terminated the letter of credit agreement with Bank of Tokyo in July 2013. In October 2014 the Commission terminated the letter of credit agreement with Union Bank and entered into a new direct draw letter of credit and reimbursement agreement of $60,750,000 with State Street Bank and Trust Company, which expires in October 2017. • Funds are drawn under the letter of credit to pay debt service on the commercial paper notes, and the Commission is required to reimburse the bank for such drawings. Amounts drawn on the letter of credit and not reimbursed within 30 days are not due until five years after the date of such draw. Accordingly, the commercial paper notes are classified as long-term liabilities in the Commission's government-wide financial statements. There were no unreimbursed draws by the Commission on the remaining letter of credit during the year ended June 30, 2014, nor were there any amounts outstanding under the remaining letter of credit agreement at June 30, 2014. • 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. 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 $78,606 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, 2014 are as follows: Year Ending June 30 2015 2016 2017 2018 Total minimum lease payments Less amount representing interest Present value of minimum lease payments Total $ 24,857 24,857 24,857 8,286 82,857 (10,846) $ 72,011 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 original 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. 39 154 • Riverside County Transportation Commission Notes to Financial Statements June 30, 2014 • Note 6. Long-term Obligations and Subsequent Events, Continued The counterparty for the first swap ($100,000,000 original notional amount) is Bank of America, and the counterparty for the second swap ($85,000,000 original 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, 2014 are ($13,382,739) and ($8,454,831), respectively. This is the amount the Commission would owe as of this date should the swaps be terminated. The terms and fair values (liabilities) of the outstanding swaps as of June 30, 2014 are as follows: Associated Notional Effective Fixed Rate Variable Rate Fair Value Swap Debt Issue Counter~arty Amount Date to be Paid to be Received (Liability) Termination Date 2009 Bonds Bank of America $ 83,400,000 10/01/2009 3.679% 67% of LIBOR $ (13,382,739) 06/01/2029 2009 Bonds Deutsche Bank 70,900,000 10/01/2009 3.206% 67% of LIBOR (8,454,831) 06/01/2029 $ 154,300,000 $ (21,837,570) The fair value (liabilities) of the outstanding swaps at June 30, 2013 was ($22,795,319), resulting in a decrease in the liabilities of $957,749 during the year ended June 30, 2014. • 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, 2014 against their threshold amounts and credit ratings for termination: Bank of America Counterparty Senior Debt Rating Threshold Amount Threshold for Termination Deutsche Bank Counterparty Senior Debt Rating Threshold Amount Threshold for Termination Moody's A2 $15,000,000 Baa1 Moody's A3 $10,000,000 Baa1 S&P A $15,000,000 BBB+ S&P A $15,000,000 BBB+ 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. Interest rate risk: The Commission is exposed to interest rate risk on its pay fixed, receive variable interest rate swaps. As LIBOR decreases, the Commission's net payments on the swaps increase. It is expected that this is offset partly by a decrease in payments on the 2009 Bonds . 40 155 Riverside County Transportation Commission Notes to Financial Statements June 30, 2014 Note 6. Long-term Obligations and Subsequent Events, Continued 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, 2014, 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 0.049% and 0.065%, respectively. Over the same period, the weighted average of 67% of one-month LIBOR was 0.111%, an approximate 6.2 basis point gain and 4.6 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. Swap payments and associated debt: Using a variable rate of 0.05% for the 2009 Bonds Series A, 0.06% for the 2009 Bonds Series B, and 0.08% for the 2009 Bonds Series C as of June 30, 2014, debt service requirements of the 2009 Bonds and the swap payments, assuming current interest rates remain the same for their term, are as follows: Variable Rate Debt Year Ending Principal Interest Total Interest Rate Total Fixed Debt June 30 SwaE, Net Service 2015 $ 7,400,000 $ 91,316 $ 7,491,316 $ 5,178,667 $ 12,669,983 2016 7,800,000 87,174 7,887,174 5,157,516 13,044,690 2017 8,100,000 82,321 8, 182,321 4,908,486 13,090,807 2018 8,500,000 77,522 8,577,522 4,645,921 13,223,443 2019 8,900,000 72,490 8,972,490 4,372,850 13,345,340 2020-2024 50,700,000 279, 121 50,979, 121 17,306,040 68,285, 161 2025-2029 62,900,000 114,891 63,014,891 8,335,914 71,350,805 $ 154,300,000 $ 804,835 $ 155, 104,835 $ 49,905,394 $ 205,010,229 As rates vary, the variable interest payments and net interest rate swap payments will vary. 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, 2014. MSHCP funding liability: 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 $132,000,000 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 eight years at $3,000,000 per year through December 2019. However, if, within the first two years of the agreement, the RCA received a federal loan guarantee related to the MSHCP or its revenues have returned to 2005 levels, the Commission may modify its commitment. The Commission did not modify its commitment within the first two year period, and, accordingly, the remaining liability of $18,000,000 is recorded as a liability in the government-wide financial statements. 41 156 • • • • • • Riverside County Transportation Commission Notes to Financial Statements June 30, 2014 Note 6. Long-term Obligations and Subsequent Events, Continued Remediation liability: In connection with the acquisition of real property in December 2013, the Commission is responsible for the cleanup of hazardous substances at the site under a voluntary cleanup agreement with the California Department of Toxic Substances Control. The Commission in consultation with its consultants calculates expected outlays related to this hazardous substance remediation to approximate $1,642,000, of which $65,594 was expended during FY 2013/14. The remediation liability balance at June 30, 2014 of $1,576,406 is expected to be fully expended in FY 2014/15 and is recorded as a liability in the government-wide financial statements. The amount of the estimated remediation liability assumes there will be no major increase in the cost of providing these cleanup services. There are no expected recoveries to offset the remediation costs. Note 7. Net Position and Fund Balances Net position: Net investment in capital assets of $381,796,683, as reported on the government-wide statement of net position, represents capital assets, net of accumulated depreciation, of $527,471,351 less the related debt of $145,674,668. The related debt includes the portion of the sales tax revenue and toll revenue bonds that was used for the development of tolled express lane capital assets. Additionally, the government-wide statement of net position reports $642,385,244 of restricted -net position, of which $381,663,545 is restricted by enabling legislation. 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. Certain state revenues are restricted for the planning and development of the new Coachella Valley/San Gorgonio Pass corridor rail service. Regional arterials: Funds for regional arterials are used to implement the planned Western County regional arterial system, as defined by WRCOG. Local streets and roads: Funds to be expended by local jurisdictions for the construction, repair, and maintenance of local streets and roads are reflected as restricted as stipulated 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 42 157 Riverside County Transportation Commission Notes to Financial Statements June 30, 2014 Note 7. Net Position and Fund Balances, Continued 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. 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 TOA restrictions at June 30, 2014 are as follows: Bicycle and pedestrian facilities Transit and specialized transportation Western County: Bus transit: City of Banning City of Beaumont City of Corona City of Riverside Riverside Transit Agency Apportioned and unallocated Commuter rail: Commission Apportioned and unallocated Total Western County 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 Local Transportation Fund $ 4,624,230 $ 3,381,035 61,074,766 2,000,000 21,646,399 88, 102,200 796,738 12,050,389 12,847,127 29,500 1,059,833 1,089,333 9,214,419 $115,877,309 State Transit Assistance Total $ $ 4,624,230 $ 537,356 $ 537,356 394,935 394,935 1,743,454 1,743,454 460,002 460,002 1,793,501 5,174,536 27,880,790 88,955,556 100,000 2,100,000 11,904,353 33,550,752 44,814,391 132,916,591 5,002,256 5,798,994 5,359,242 17,409,631 10,361,498 23,208,625 140,487 169,987 186,590 1,246,423 327,077 1,416,410 9,214,419 $ 55,502,966 $ 171,380,275 • • Commuter rail: Restricted fund balance in the General fund represents TOA monies to be used for commuter rail operations and capital. • 43 158 Riverside County Transportation Commission Notes to Financial Statements June 30, 2014 • Note 7. Net Position and Fund Balances, Continued • • Transportation Uniform Mitigation Fee: TUMF revenues to be received by the Commission are to be used for new CETAP corridors and the regional arterial system in Western County and are restricted as follows: CETAP: Funds for the development of new transportation corridors are used to provide congestion relief and mobility within the County and between the County and its neighboring Orange and San Bernardino counties. Funds will be matched by revenues of $370 million generated from the 2009 Measure A. Regional arterials: Funds for regional arterials are used to implement the planned Western County regional arterial system. Funds will be matched by revenues of $300 million generated from the 2009 Measure A. 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 $6,394,219 and $1,496,699, 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, as amended, is for a period of 15 years expiring in October 2017 and may be extended for one additional five-year term. Rental expenditures for the fiscal year ended June 30, 2014 were approximately $369,500 . Year Ending June 30 2015 2016 2017 2018 Total minimum rental commitment Amount $ 377,820 385,375 393,085 126,800 $ 1,283,080 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. In November 2012, the Commission entered into an agreement with the BNSF Railway Company (BNSF) for the acquisition and use of a rail easement in connection with a rail project for an amount of $25,000,000. Under the terms of the agreement, the Commission has paid $14,999,999 through 2014. The remaining balance of $10,000,001 is due at various dates through the earlier of the closing date, which may be extended to March 31, 2015, or 90 days prior to the scheduled commencement of rail service on the rail project, which is projected to occur by December 2015. Furthermore, the agreement may be terminated by the Commission if the Commission is not prepared to proceed to closing. Should the closing not occur, BNSF is required to return up to $24,349,999 of payments received through closing. 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 . 44 159 Note 9. Joint Agreements Riverside County Transportation Commission Notes to Financial Statements June 30, 2014 Joint ventures: The Commission is one of five members of the SCRRA, an independent joint powers authority created in June 1992. The SCRRA's board consists of one member from the Ventura County Transportation Commission; two each from the Orange County Transportation Authority (OCTA), the San Bernardino Associated Governments, and the Commission; and four members from the Los Angeles County Metropolitan Transportation Authority. The SCRRA is responsible for implementing and operating a regional commuter rail system (Metrolink) in five southern California counties. As a member of SCRRA, the Commission makes capital and operating contributions for its pro rata share of rail lines servicing the County. The Commission expended $8,264,705 during 2014 for its share of Metrolink operating costs. As of June 30, 2014, cumulative capital contributions were $42,308,556. 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, 121h Floor, Los Angeles, California 90012. In May 2013 the Commission became a full voting member of the Los Angeles-San Diego-San Luis Obispo (LOSSAN) Rail Corridor Agency with the intent to have greater involvement in regional rail issues because of its legal ownership rights regarding passenger rail service between Fullerton and Los Angeles. The LOSSAN Rail Corridor Agency is a locally governed joint powers authority comprised of 13 agencies created to oversee the intercity passenger rail service in the travel corridor between San Diego and San Luis Obispo County. The Commission's share of administration costs is subject to future negotiations; however, during 2014 the Commission contributed $43, 100 for administration efforts. 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, which have been completed. The Commission was the recipient and administering entity of federal and state funds as necessary to accomplish this work, and the three agencies shared in • meeting the local agency matching requirements. As of June 30, 2014, the Commission was not required to make any • contributions. Note 10. Employees' Pension Plans Public Employees' Retirement System: The Commission contracts with the State of California Public Employees' Retirement System (PERS) to provide its employees retirement as well as death and retirement disability benefits, which are paid by the PERS under a cost sharing multiple-employer plan. Copies of the PERS' annual financial report may be obtained from its executive office located at 400 P Street, Sacramento, California 95814, or by visiting the PERS website at www.calpers.ca.gov. Through the June 30, 2003 valuation, the PERS plan was an agent multiple-employer retirement plan. Effective July 1, 2003, due to the Commission having less than 100 active members, the Commission's PERS plan was converted from an agent multiple-employer plan {former plan) to a cost sharing multiple-employer plan. The former plan is an aggregation of single employer plans, where separate accounts are maintained for each employer and contributions by the employer benefit only the employees of the employer. Under this plan, separate actuarial valuations are performed for each employer, and the results are attributed to and accounted for by the employer. The cost sharing multiple-employer plan is a pooling arrangement whereby risks, rewards, and benefit costs are shared and not attributed individually to any single employer. Periodic employer pension expense can be significantly different between the plan types. The change to the pooling arrangement was initially effective for the Commission's required contribution rate during the fiscal year ended June 30, 2006. At the time of joining the risk pool under the cost-sharing multiple-employer plan, a side fund (the amount that the Commission would owe PERS if it exited the plan) was created to account for the difference between the funded status of the pool and the funded status of the Commission's plan. As of the June 30, 2012 valuation (most current valuation available), the estimated amount of the side fund liability was $1,455,321. 45 160 • • • • Riverside County Transportation Commission Notes to Financial Statements June 30, 2014 Note 10. Employees' Pension Plans, Continued All permanent Commission employees are eligible to participate in PERS. Employees hired prior to January 1, 2013 and attaining the age of 55 with five years of credited California service (service) are eligible for normal retirement and are entitled to a monthly benefit of 2.7% of their final compensation for each year of service. Final compensation is defined as the highest annual salary earned. Retirement may begin at age 50 with a reduced benefit rate. The plan also credits employees for unused sick leave. Employees hired on or after January 1, 2013 who are not "classic" members and attaining the age of 62 with five years of credited service are eligible for normal retirement and are entitled to a monthly benefit of 2% of their three-year final compensation for each year of service. Retirement may begin at age 52 with a reduced benefit rate. Upon separation from the plan prior to retirement, members' accumulated contributions are refundable with interest credited through the date of separation. The Commission pays the employee paid member contribution (EPMC) of 5% of regular earnings. The Commission is required to contribute the remaining amounts necessary to fund the benefits of its members, using the actuarially determined rate, which was 23.557% for the fiscal year ended June 30, 2014. Three-year trend information for PERS: Fiscal Year Ended June 30 2014 2013 2012 $ Annual Required Contribution (ARC) 1,226,250 1,054,621 994,806 Percentage of Net Pension ARC Contributed Obligation 100% $ 100% 100% In May 2013, the Commission approved the implementation of employees' cost sharing of EPMC phased in over a three-year period with 3% beginning in July 2013, 6% in July 2014 and 8% in July 2015. The 8% EPMC paid by the Commission will be eliminated in FY 2015/16. 401 (a) plan: The Commission offers its employees a 401 (a) single-employer defined contribution plan referred to as the Money Purchase Plan & Trust (Plan), which covers all permanent full-time employees. Employees are fully vested in the Plan after five years. The Plan, which is administered by the International City/County Management Association (ICMA), requires the Commission to make a contribution of 7.5% of the employees' earnings for the Plan year. Fiduciary responsibility and reporting of the Plan assets rests with ICMA. The Commission has the authority to amend the contribution requirements. Total payroll for covered employees for the current year was $4,316,567. The Commission's contributions to the Plan were $322,155 for the year ended June 30, 2014. Note 11. Other Postemployment Benefits (OPES) 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 . 46 161 Riverside County Transportation Commission Notes to Financial Statements June 30, 2014 Note 11. Other Postemployment Benefits (OPEB), Continued 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 9.2% for the fiscal year ended June 30, 2014. Annual OPEB cost: For 2014, the Commission's OPEB cost of $378,000 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 2014 and the preceding two years were as follows: Fiscal Year OPES Annual Required Percentage of OPEB ARC Net OPEB Ended June 30 Contribution (ARC) Contributed Obligation 2014 $ 378,000 100% $ 2013 409,000 100% 2012 397,000 100% Funded status and funding progress: The funded status of the plan as of June 30, 2013, based on the June 30, 2013 actuarial valuation (most current valuation available), was as follows: Actuarial accrued liability (AAL) Actuarial value of plan assets Unfunded actuarial accrued liability (UAAL) Funded ratio (actuarial value of plan assets/ML) Covered payroll (active plan members) UAAL as a percentage of covered payroll $ 4,047,000 3,335,000 $ 712,000 82.4% $ 3,822,793 18.6% The schedule of funding progress for postretirement health care that immediately follows the notes to the financial statements presents multi-year trend information about whether the actuarial value of plan assets is increasing or decreasing relative to the actuarial accrued liability for benefits over time. 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. 47 162 • • • Riverside County Transportation Commission Notes to Financial Statements June 30, 2014 Note 11. Other Postemployment Benefits (OPEB), Continued In the June 30, 2013 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, 2014 that have an effective date that may impact future financial presentations include: • GASS Statement No. 68, Accounting and Financial Reporting for Pensions, which is effective for periods beginning after June 15, 2014; • GASB Statement No. 69, Government Combinations and Disposals of Government Operations, effective beginning after December 15, 2013; • GASB Statement No. 70, Accounting and Financial Reporting for Nonexchange Financial Guarantees, effective beginning after June 15, 2013; and • GASS Statement No. 71, Pension Transition for Contributions Made Subsequent to the Measurement Date-an Amendment of GASB Statement No. 68, effective simultaneously with the provisions of GASS Statement No. 68. Management has not currently determined what, if any, impact implementation of these statements may have on the financial statements of the Commission, except that GASS Statement No. 68 will have an effect on the Commission's net position. However, management has not calculated such effect. 48 163 • Required Supplementary Information • • 49 164 Riverside County Transportation Commission • Schedule of Revenues, Expenditures and Changes in Fund Balance Budget and Actual -General Fund Year Ended June 30, 2014 General Variance with Final Budget Original Final Positive Budget Budget Actual (Negative) Revenues Sales taxes $ 2,800,000 $ 2,800,000 $ 2,800,000 $ Intergovernmental 1,144,000 844,000 526,238 (317,762) Investment income 20,200 20,200 59,245 39,045 Other 224,800 224,800 185,261 (39,539) Total revenues 4,189,000 3,889,000 3,570,744 (318,256) Expenditures Current: General government 5,465,000 5,540,000 4,653,454 886,546 Commuter rail 15,437,400 15,501,265 11,858,991 3,642,274 Planning and programming 5,845,000 5,767,000 2,548, 111 3,218,889 • Tran sit and specialized transportation 351,800 429,800 391,298 38,502 Total programs 27,099,200 27,238,065 19,451,854 7,786,211 Debt service: Principal 13,000 12,884 116 Interest 10,000 9,997 3 Total debt service 23,000 22,881 119 Capital outlay 439,200 416,200 110,888 305,312 Total expenditures 27,538,400 27,677,265 19,585,623 8,091,642 Excess {deficiency) of revenues over (under) expenditures (23,349,400) (23, 788,265) (16,014,879) 7,773,386 Other financing sources (uses) Capital lease 78,606 78,606 Transfers in 14,896,600 15,581,365 13,686,031 (1,895,334) Total other financing sources (uses) 14,896,600 15,581,365 13,764,637 (1,816,728) Net change in fund balances $ (8,452,800) $ (8,206,900) (2,250,242) $ 5,956,658 Fund balances at beginning of year 12,840,351 Fund balances at end of year $ 10,590,109 • See notes to required supplementary information 50 165 • • • 166 • Revenues Sales taxes Transportation Uniform M1tigat1on Fee Intergovernmental Investment income Other Total revenues Expenditures Current General government Bicycle and pedestrian facilities CETAP Commuterass1stance Commuter rail Highways Localstreels and roads Planning and programming Regionalartenals T rans1! and specialized transporta!1on Total programs Caprtaloullay Total expenditures Excess (deficiency) of revenues over (under) expenditures O!herfinancingsources(uses) Transfers in Transfers out Total other financing sources (uses) Net change in fund balances Fund balances at beginning of year Fundbalancesatendofyear Original Budget 108,401,000 423,400 221,689,300 621,800 855,000 331,990,500 4,404,700 156.791,000 463, 172.700 30,634,900 2,307,500 6,071,800 663,382,600 357,000 663,739,600 Measure A Western County Final Budget 115,918,000 423,400 221,884,241 621,800 855,000 339,702,441 2,620,400 4,410,200 160,701,509 460,999,800 32,768,800 2,309,500 6,071,800 669,882,009 353,500 670,235,509 Actual 115,941,091 171,321 110,845,186 1,248,889 1,081,087 229,287,574 2,325,849 3,136,150 56,148,017 286,354,957 32,769,052 1,441 5,025,073 385.760,539 33,000 385,793,539 1331,749, 100) 1330.533,068) 1156,505,965) 354,136,700 (34,804,900) 319,331,800 354,136,700 142,586,265) 311,550,435 224,964,163 (26,096,631) 198,867,532 Variance with Final Budget Positive (Negative) 23,091 1252,079) 1111,039,055) 627,089 226,087 1110,414,867) 294,551 1,274,050 104,553,492 174,644,843 1252) 2,308,059 1,046,727 284,121,470 320,500 284,441,970 174,027,103 1129,172,537) 16,489,634 1112,682,903) 112,417,300) (18,982,633) 42,361,567 I 61,344,200 ~ 336,826,290 • Riverside County Transportation Commission Schedule of Revenues, Expenditures and Changes in Fund ~alance Budget and Actual -Major Special Revenue Funds Original Budget 34,781,000 14,100 34,795,100 25,014,500 12,173,000 5,503,500 42,691,000 42,691,000 Year Ended June 30, 2014 Measure A Coachella Valley Final Budget 37,193,000 14,100 37,207,100 26,237,500 12,908,100 5,503,500 44,649,100 44,649,100 Actual 36,471,460 142,985 36,614,445 12,743,165 12.765,185 5,217,000 30,725,350 30.725,350 Variance with Final Budget Positive (Negative) (721,540) 128,885 1592,655) 13,494,335 142,915 286,500 13,923,750 13,923,750 Original Budget 6,300,000 60,300 6,360,300 9,357,300 50,718,800 60,076,100 60,Q76,100 Transportation Uniform Mitigation Fee Final Budget 7,400,000 60,300 7,460,300 9,520,300 52,502,300 62,022,600 62,022,600 Actual 11,113,073 (43,195) 717,530 11,787,408 6,509,915 23,885,399 30,395,314 30,395,314 (7,895,900) (7,442,000) 5,889.095 13,331,095 (53.715,800) (54,562,300) (18,607,906) 188,123 188,123 188,123 188,123 (7,895,900) (7,442,000) 6,077,218 $ 13,519,218 27,356,273 33,433.491 51 167 32,319,500 (16,013,300) 16,306,200 (37,409,600) 32,319,500 (16,013,300) 16,306,200 (38,256,100) 9,413,795 (793,907) 8,619,888 (9,988,018) 67,306,789 ~ Variance with Final Budget Positive (Negative) 3,713,073 (43,195) 657,230 4,327,108 3,010,385 28,616,901 31,627,286 31,627,286 35,954,394 (22,905,705) 15,219,393 (7,686,312) Original Budget 72,500,000 214,500 72.714,500 12,000 1,280,000 543,800 67,439,000 69,274,800 69,274,800 3,439,700 (13,716,100) (13.716,100) ~$(10,276,400) • Local Transportation Fund Final Budget 76,500,000 214,500 76,714,500 12,000 1,280,000 656,000 67,439,000 69,387,000 69,387,000 7,327,500 114,165,000) (14,165,000) (6,837,500) Actual 77,544, 177 486,177 78,030,354 12,000 1,065,476 655,962 53,209,690 54,943,128 54,943,128 23,087,226 (12,452,874) (12,452,874) Variance with Final Budget Positive (Negative) 1,044,177 271,677 1,315,854 214,524 38 14,229,310 14,443,872 14,443,872 15.759,726 1.712,126 1.712,126 10,634,352 $ 17,471,852 105,242,957 115,877,309 • • • 168 • Riverside County Transportation Commission Schedule of Funding Progress for Postretirement Health Care Actuarial Accrued UAAL as a Actuarial Liability Percentage Actuarial Value of (AAL)-Unfunded Funded Covered of Covered Valuation Date Assets Entry Age AAL (UAAL) Ratio Payroll Payroll June 30, 2013 $ 3,335,000 $ 4,047,000 $ 712,000 82.4% $ 3,822,793 18.6% June 30, 2011 2,340,000 3,543,000 1,203,000 66.0% 3,791,900 31.7% January 1, 2009 1,583,000 2,145,000 562,000 73.8% 3,805,596 14.8% June 30, 2007 1,794,000 1,794,000 0.0% 2,396,757 74.9% See notes to required supplementary information • • • • • 170 • • • Budgetary Data Riverside County Transportation Commission Notes to Required Supplementary Information June 30, 2014 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, 2013 . 53 171 Other Supplementary Information 54 172 • • • • • • 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. Coachella Valley Rail: This fund is used to account for revenues from state funds for the planning and development of the new Coachella Valley/San Gorgonio Pass corridor rail service . 55 173 • • • 174 Riverside County Transportation Commission • Combining Balance Sheet. Nonmajor Governmental Funds June 30, 2014 Special Revenue Service Measure A Freeway Authority State Coachella Palo Verde Service for Freeway Transit Valley Valley Patrol Emergencies Assistance Rail Total Assets Cash and investments 556 1,022,332 6,234,670 51,890,555 4, 192,718 63,340,831 Receivables: Accounts 220,604 924,010 573,597 3,911,053 5,629,264 Interest 1,064 5,063 42,223 1,745 50,095 Total assets 221,160 1,947,406 6,813,330 55,843,831 4,194,463 69,020,190 Liabilities and fund balances Liabilities: Accounts payable 181,235 274,802 248,958 340,865 60,278 1,106,138 Due to other funds 39,369 175,905 170,153 385,427 Total liabilities 220,604 450,707 419,111 340,865 60,278 1,491,565 Fund balances: Commuter rail 4,134,185 4, 134, 185 Local streets and roads 556 556 Motorist assistance 1,496,699 6,394,219 7,890,918 Transit and specialized transportation 55,502,966 55,502,966 Total fund balances 556 1,496,699 6,394,219 55,502,966 4, 134,185 67,528,625 Total liabilities and fund balances 221,160 1,947,406 6,813,330 55,843,831 4, 194,463 69,020, 190 • • 56 175 Riverside County Transportation Commission Combining Statement of Revenues, Expenditures, and Changes in Fund Balances • Non major Governmental Funds Year Ended June 30, 2014 Special Revenue Service Total Measure A Freeway Authority State Coachella Non major Palo Verde Service for Freeway Transit Valley Governmental Valley Patrol Emergencies Assistance Rail Funds Revenues Sales taxes $ 1, 143,343 14,409,377 15,552,720 Intergovernmental 2,131,514 2,059,461 4,200,000 8,390,975 Investment income (loss) 3,993 34,609 280,938 (409) 319,131 Other 1,146 15,026 16,172 Total revenues 1,143,343 2,136,653 2,109,096 14,690,315 4,199,591 24,278,998 Expenditures Current: Commuter rail 65,406 65,406 Local streets and roads 1,143,343 1, 143,343 Motorist assistance 2,618,669 879,751 3,498,420 Transit and specialized transportation 14,880,837 14,880,837 Total expenditures 1,143,343 2,618,669 879,751 14,880,837 65,406 19,588,006 Excess (deficiency) of revenues over (under) expenditures (482,016) 1,229,345 (190,522) 4, 134,185 4,690,992 Other financing sources (uses): • Transfers in 916,400 916,400 Transfers out (170,826) (1,084,063) (1,254,889) Total other financing sources (uses) 745,574 (1,084,063) (338,489) Net change in fund balances 263,558 145,282 (190,522) 4,134,185 4,352,503 Fund balances at beginning of year 556 1,233,141 6,248,937 55,693,488 63,176,122 Fund balances at end of year $ 556 $ 1,496,699 6,394,219 55,502,966 $ 4,134,185 $ 67,528,625 • 57 176 • Revenues Sales taxes Intergovernmental lnveslmenlincome(loss) Other Total revenues Expenditures Current Commuter rail Local streets and roads MotorJStass1stance Trans1tandspec1alizedtransportation Total expenditures Excess(defic1ency)ofrevenuesover(under} expenditures Otherfinancingsources(uses) Transfersm TransJersout Totalotherfinancingsources (uses) Netchangemfundbalances Fundbalancesatbeginn1ngofyear Fundbalancesatendofyear Measure A Pafo Verde Valley Original Final Budget Budget Actual $1,018,000 $1,089,000 $1,143,343 $ 1,018,000 1,089,000 1,143,343 1,018,000 1,189,000 1,143,343 1,018,000 1,189,000 1,143,343 (100,000) (100,000) I 556 ~ Variance with Final Budget Positive (Negative) 54,343 $ 54,343 45,657 45,657 100,000 100,000 $ • Riverside County Transportation Commission Schedule of Revenues, Expenditures and Changes in Fund Balances Budget and Actual-Nonmajor Special Revenue Funds Year Ended June 30, 2014 Freeway Service Patrol Service Authority for Freeway Emergencies Variance with Variance with Final Budget Final Budget Original Final Positive Original Final Positive Budget Budget Actual {Negative) Budget Budget Actual (Negative) I $ $ $ $ $ I 2,680,000 2,680,000 2,131,514 (548,486) 1,992,000 1,992,000 2,059,461 67,461 1,300 1,300 3,993 2,693 11,700 11,700 34,609 22,909 600 600 1,146 546 10,000 10,000 15,026 5,026 2,681,900 2,681,900 2,136,653 (545,247) 2,013,700 2,013}00 2,109,096 95,396 3,695,600 3,698,100 2,618,669 1,079,431 1,769,000 1,765,500 879,751 885,749 3,695,600 3,698,100 2,618,669 1,079,431 1,769,000 1,765,500 879,751 885,749 (1,013.700) (1,016,200) (482,016) 534,184 244.700 248,200 1,229,345 981,145 950,000 950,000 916,400 (33,600) 214,400) (214,400) (170,826) 43,574 (1,076,500) (1,076,500) (1,084,063) r.563J 735,600 735,600 745,574 9,974 (1,076,500) {1,076,500) (1,084,063) il.563) (278,100) $ (280,600) 263,558 $ 544,158 $ (831,800) $ (828,300) 145,282 $ 973,582 1,233,141 6,248,937 ~ ~ 58 177 • State Transit Assistance Coachella Valley Rail Variance with Variance with Final Budget Fina!Budget Original Final Positive Original Final Positive Budget Budget Actual (Negative) Budget Budget Actual (Negative) $ 13,298,000 $ 13,298,000 $ 14,409,377 $ 1,111,377 $ $ $ 4,500,000 4,200,000 (300,000) 106,700 106,700 280,938 174,238 (409) (409) 13,404,700 13,404,700 14,690,315 1,285,615 4,500,000 4,199,591 (300,409) 400,000 65,406 334,594 25,852,000 25,852,000 14,880,837 10,971,163 25,852,000 25,852,i5i50 14,880,837 10,971,163 400,000 65,406 334,594 (12,447,300) (12,447,300) (190,522) 12,256,778 4,100,000 4,134,185 34,185 $ (12,447,300) $ (12,447,300) (190,522) $ 12,256,778 55,693,488 s $4,100,000 4,134,185,$ 34,185 ~ ~ Revenues Intergovernmental Investment income (loss) Total revenues Expenditures Current: Highways Total programs Debt service: Principal Interest Cost of issuance Total debt service Total expenditures Excess (deficiency) of revenues over (under) expenditures Other financing sources (uses) Debt issuance Discount on debt issuance Premium on debt issuance Transfers in Transfers out Total other financing sources {uses) Net change in fund balances Fund balances at beginning of year Fund balances at end of year • 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, 2014 Capital Projects Funds Commercial Paper Variance with Final Budget Original Final Positive Budget Budget Actual (Negative) 75,800 75,800 2,008,492 1,932,692 75,800 75,800 2,008.492 1,932,692 300,000 300,000 300,000 300,000 80.000.000 76,599,500 60,000,000 16,599,500 100,000 63,500 789 62,711 80,100.000 76,663,000 60,000,789 16,662,211 80, 100,000 76,963,000 60,300,789 16,662,211 (80,024,200) (76,887,200) (58,292,297) 18,594,903 20,000,000 20,000,000 (20,000,000) 80,000,000 61,205,700 60,001,951 (1,203,749) (17,498,400) (9,952,900) (9,397,766) 555, 134 82,501.600 71,252,800 50.604,185 (20,648,615) 2,477,400 $ (5,634,400) (7,688, 112) $ (2,053, 712) 36,097,201 $ 28.409,089 Bonds Variance with Final Budget Original Final Positive Budget Budget Actual (Negative) $ 1,801,900 1,801,900 2,040,275 238,375 1,801,900 1,801,900 2,040,275 238,375 1,248,100 65,500 65,500 1,248, 100 65,500 65;500) 7,500,000 7,051,300 7,050,855 445 7,500,000 7,051,300 7,050,855 445 8,748,100 7,116,800 7,050,855 (65,055) (6,946,200) 722,158,000 68,616,000 (5,314,900) 728,855,000 (2,433,300) 61,919,000 (5,010,580) 638,854,602 (2,433,315) 38,328,775 304,320 (90,000,398) (15) (23,590,225) (542,752,200) (542, 752,200) (429,036, 145) 113,716,055 248,021,800 245,588,500 245,713,917 125,411 241,075,600 $ 240,273,600 240,703,337 $ 429,737 4,477,116 $ 245,180,453 59 17 • Original Budget Debt Service Fund Final Budget Actual Variance with Final Budget Positive (Negative) 2,744,000 $ 2,744,000 $ 2.767,401 $ 23,401 1,098,200 1,098,200 2,957,188 1,858,988 3,842,200 3,842,200 5.724,589 1,882,389 788,300 817,300 817,300 788,300 817,300 817,300 7,100,000 7,100,000 7,100,000 41,012,300 43,412,800 43,399,417 13,383 48,112,300 So,512,800 50.499,411 13,383 48,900,600 51,330,100 So,499,417 830,683 (45,058,400) (47.487,900) (44,774,828) 2,713,072 154,023,000 172.817,300 172,817,272 (28) (10,000,000) (10,000,000) (2,955,523) 7,044,477 144,023,000 162,817,300 169,861,749 7,044.449 98,964,600 $ 115,329,400 125,086,921 $ 9,757,521 11.225,363 $ 136,312.284 • • Riverside County Transportation Commission Schedule of Expenditures for Local Streets and Roads by Geographic Area -All Special Revenue Funds Year Ended June 30, 2014 Western County: City of Banning $ 495,479 City of Beaumont City of Calimesa 139,887 City of Canyon Lake 158,056 City of Corona 3,469,096 City of Eastvale 1,017,709 City of Hemet 1,507,885 City of Jurupa Valley 1,685,883 City of Lake Elsinore 1,063,952 City of Menifee 1,345,367 City of Moreno Valley 3,355,602 City of Murrieta 1,932,596 City of Norco 560,343 City of Perris 1,266,424 City of Riverside 6,227,467 City of San Jacinto 722,104 City of Temecula 2,567,815 City of Wildomar 519,346 • Riverside County 4,733,755 Other 286 32,769,052 Coachella Valley: City of Cathedral City 1,311,341 City of Coachella 588,431 City of Desert Hot Springs 462,570 City of Indian Wells 228,315 City of Indio 1,605,432 City of La Quinta City of Palm Desert 2,543,037 City of Palm Springs 1,916,126 City of Rancho Mirage 819,335 Riverside County 1,878,446 Coachella Valley Association of Governments, including $705,989 due to City of La Quinta 1,411,977 Other 175 12,765, 185 Palo Verde Valley: City of Blythe 910,357 Riverside County 232,986 1, 143,343 Total local streets and roads expenditures $ 46,677,580 • 60 179 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, 2014 Sales Taxes Local Transportation Measure A Fund Western County: Blindness Support Services, Inc. $ 62,571 $ Boys and Girls Club of Southwest County 210,163 CASA for Riverside County 57,503 Care-A-Van 342,057 Care Connexxus 250,000 City of Banning 1,029,444 City of Beaumont 1,768,870 City of Coachella 1,686,917 City of Norco 59,971 City of Riverside 2,562,758 Community Connect 246,528 Friends of the Moreno Valley Senior Citizens 54,936 Independent Living Partnership 555,823 Inland Aids Project 77,204 Operation Safe House 24,936 Riverside County Regional Medical Center 151,740 Riverside Transit Agency 2,721,693 34,553,300 United States Veterans Initiative 43,292 Other 166,656 5,025,073 41,601,289 Coachella Valley: Sun Line Transit Agency 5,217,000 10,770,729 5,217,000 10,770,729 Palo Verde Valley: Palo Verde Valley Transit Agency 837,672 837,672 Total transit and specialized transportation expenditures $ 10 ,242,073 $ 53,209,690 61 180 • State Transit Assistance Total $ $ 62,571 210, 163 57,503 342,057 250,000 73,958 1,103,402 206,426 1,975,296 1,686,917 59,971 33,748 2,596,506 246,528 54,936 555,823 • 77,204 24,936 151,740 13,036,341 50,311,334 43,292 166,656 13,350,473 59,976,835 1,470,046 17,457,775 1,470,046 17,457,775 60,318 897,990 60,318 897,990 $ 14,880,837 $ 78,332,600 • • • • This page intentionally left blank . 62 181 • • • 182 ,. • Statistical Section • 183 • This page intentionally left blank. • • 184 • • • 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 Position By Component Changes in Net Position Fund Balances of Governmental Funds Changes in Fund Balances of Governmental Funds Revenue Capacity: These schedules contain information to help the reader assess the government's most significant local revenue source, the Measure A sales tax. These schedules include: Sources of County of Riverside Taxable Sales by Business Type Direct and Overlapping Sales Tax Rates Principal Taxable Sales Generation by City Measure A Sales Tax Revenues by Program and Geographic Area Measure A Sales Tax by Economic Category Debt Capacity: These schedules present information to help the reader assess the affordability of the government's current levels of outstanding debt and the government's ability to issue additional debt in the future. These schedules include: Pledged Revenue Coverage Ratios of Outstanding Debt by Type Computation of Legal Debt Margin Demographic and Economic Information: These schedules offer demographic and economic indicators to help the reader understand the environment within which the government's financial activities take place. These schedules include: Demographic and Economic Statistics for the County of Riverside Employment Statistics by Industry for the County of Riverside Operating Information: These schedules contain service and infrastructure data to help the reader understand how the information in the government's financial report relates to the services the government provides and the activities it performs. These schedules include: Full-time Equivalent Employees by Function/Program Operating Indicators Capital Asset Statistics by Program 63 185 This page intentionally left blank. 64 186 • • • • • • 2014 2013 2012 Governmental activities: Net Investment in capital assets $ 381,796,683 6 $ 336,834,025 $ 327,277,502 $ Restricted 642,385,244 619,089,707 572,183,941 Unrestricted (deficit) (470,327,554) (216, 162,697) (215,929,362) Total governmental activities net position $ 553,854,373 $ 739, 761,035 $ 683,532,081 $ Source: Finance Department Riverside County Transportation Commission Net Position by Component Last Ten Fiscal Years (Accrual Basis) Fiscal Year 2011 2010 341,912,094 5 $ 294,218,263 4 $ 587,098, 179 549,781,414 (293,146,251) (229,888,408) 635,864,022 $ 614,111,269 $ 2009 266,647,382 3 $ 505,474,075 (205,658,986) 566,462,471 $ 2008 2007 2006 207,478,034 2 $ 147,874,291 $ 137, 129,082 $ 521,711,172 531,154,177 442, 129,220 (149,004,964) (118,675,049) (102,074,881) 580, 184,242 $ 560,353,419 $ 477,183,421 $ 1 The beginning balance of net investment in capital assets was restated due to a correction in the accounting for certain rail capital assets in the 2005 financial statements, resulting in an increase of $19,283,259. Prior year amounts in this presentation have not been revised to reflect these changes. 2 Net investment in capital assets increased in 2008 primarily as a result of right of way purchases related to the Mid County Parkway project. 3 Net investment in capital assets increased in 2009 primarily as a result of right of way purchases related to the Mid County Parkway project, the planning and development of toll projects, and the construction of a multimodal transit facility and a commuter rail station parking structure. ' Net investment in capital assets increased in 2010 primarily as a result of the planning and development of toll projects and the completion of construction of the Perris Transit Center and North Main Corona station parking structure. 5 Net investment in capital assets increased in 2011 primarily as a result of the planning and development of toll projects and right of way acquisiton for the SR-91 corridor improvement and Perris Valley Line extension projects. 6 Net investment in capital assets increased in 2014 primarily as a result of construction related to the Perris Valley Line project. Net Position by Component ---·---~--~-------~------~l I 1.~'~"-"""' "-"'" "'"'-"-"'""~'"]ets ~--------~-~--------------65 187 2005 133,225,528 325,504,623 (124,274,292) 334,455,859 ----------- • • • 188 • Expenses Governmental activities: General governmenl Bicycle and pedestrian projects CETAP Commuter assistance Commuter rail Highways Local streets and roads Motorist assistance Planning and programming Right of way management Regional arterials Transit and specialized transportation Interest expense Total governmental activities expenses Program Revenues Governmental activities· Charges for services Commuter assistance Commuter rail Right of way management Highways Motorist assistance Planning and programming Other Operating grants and contribulions Capital grants and contributions Total governmental activities program revenues Net Revenues (Expenses) Governmental activities General Revenues Governmental activities: Measure A sales taxes Transportation Development Act sales taxes Unrestricted investment earnings Other miscellaneous revenue Gain on sale of capital assets Total governmental activities general revenues Changes in Net Position 2014 6,994,832 1,065,476 2,195,074 3,171,842 17,255,402 339,194,681 46,677,580 3,498,420 3,216,441 23,886,840 78,723,898 52,939,762 578,820,248 297,911 412,535 15,026 999 61,767,456 71,744,926 134,238,853 (444,581,395) 156,355,894 91,953,554 9,794,662 556,049 14,574 258,674,733 2013 6,959,827 956,308 954,700 2,904,048 23,531,252 59,604,916 44,594,891 3,563,581 3,725,703 17,047, 135 55,659,188 15,364,677 234,866,226 1,500 107,194 796,385 13,915 14,873 46,567,900 4,897,301 52,399,068 (182,467, 158) 149,428, 124 86,999,018 1,664,789 604,181 238,696,112 • Riverside County Transportation Commission Changes in Net Position 2012 7,780,478 1,389,567 4,464,387 3,193,172 21,480,248 72,341,578 40,127,890 3,846,245 3,924,413 5,816,666 51,221,772 15,221,031 230,807,447 145,735 54,641,955 5,228,621 60,016,311 (170,791, 136) 134,984,307 80,044,131 4,196,452 1,287,981 220,512,871 Last Ten Fiscal Years (Accrual Basis) 2011 8,453,876 1,940,499 5,490,993 2,868,630 27,792,375 40,113,092 36,856,925 3,530,695 4,683,272 1,270,487 29,362,894 44,699,650 11,799,586 218,862,974 184,010 27,681 39,886,648 9,199,268 49,297,607 (169,565,367) 123,439,833 60,772,795 4,411,122 2,694,370 191,318,120 Fiscal Year Ended June 30 2010 2009 ------7,024,517 317,048 2,362,393 3,266,834 20,544,634 24,828,958 34,258,313 2,987,136 5,321,121 1,428,066 26,371,339 43,820,225 7,099,038 179,629,622 196,527 23,130,456 12,257,099 35,584,082 (144,045,540) 114,526,254 69,499,841 5,987,921 1,680,322 191,694,338 5,525,963 2,747,151 4,832,008 5,199,032 16,038,028 143,532,009 45,661, 155 2,623,184 10,126,142 1,399,316 20,948,530 77,417,741 9,515,282 345,565,541 2,525,314 421,738 19,778 46 90,280,426 25,321,886 118,569,188 (226,996,353) 119,688,289 77,920,485 14,211,197 1,454,611 213,274,582 2008 5,299,048 1,436,710 8,017,024 3,464,834 14,832,473 59,988,334 54,520,115 3,983,252 7,931,869 551,960 31,131,731 83,927,945 6,281,232 281,366,527 352,826 507,298 2,331 28,391,787 9,742,280 38,996,522 (242,370,005) 142,537,548 93,042, 150 25.055,456 1,565,674 262,200,828 2007 5,592,637 760,840 5,433,499 3,122,306 12,458,895 42,436,979 60,099,526 2,408,612 6,561,185 631,996 30,756,287 75,567,829 6,881,128 252,711,719 463 497,656 2,367 47,313,916 620,292 48,434,694 (204,277,025) 154,539,723 104,160,163 23,897,399 1,571,716 3,278,022 287,447,023 2006 4,848,292 848,959 3,549,683 2,888,451 11,350,220 36,226,705 60,389,876 2,280,646 5,976,647 622,498 17,164,803 62,527,276 7,832,733 216,506,789 382 445,313 50 26,273 90,389,018 997,362 91,858,398 (124,648,391) 157,236,314 90,927,244 11,639,575 1,698,024 5,874,796 267,375,953 2005 4,115,907 1,021,637 4,147,758 2,599,448 8,907,828 35,362,793 53,333, 169 2,191,061 4,328,038 580,224 17,621,505 55,905,814 8,348,928 198,464, 110 2,564 547,075 24,972 72,202,430 877,665 73,654,706 (124,809,404) 138,921,247 77,818,565 5, 146,325 2,366,380 123,054 224,375,571 Governmental activities $ (185,906,662) $ 56,228,954 $ 49,721,735 $ 21,752,753 $ 47,648,798 $ (13,721,771) $ 19,830,823 $ 83,169,998 $ 142,727,562 $ 99,566,167 Source: Finance Department 1 Right of way expenditures were classified as highways or commuter rail expenditures beginning in 2012. 2 In FY 2012 the Commission implemented GASS Statement No. 65, Items Previously Reported as Assets and Liabilities. Prior year amounts in this presentation have not been revised to reflect this change. 189 • 66 .I • • 190 • • • $700,000,000 $600,000,000 $500,000,000 $400,000,000 $300,000,000 $200,000,000 $100,000,000 $450,000,000 $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 •Interest expense El Transit and specialized transportation a Regional arterials •Right of way management •Planning and programming mMotorist assistance •Local streets and roads Ill Highways •Commuterrail D Commuter assistance aCETAP •Bicycle and pedestrian facilities BGeneral government 2014 2013 2012 2011 2010 2009 2008 2007 2006 2005 Revenues by Source •Gain on sale of capital assets COther miscellaneous revenue •Unrestricted investment earnings •Transportation Development Act sales taxes 0 Measure A sales taxes a Capital grants and contributions •Operating grants and contributions i fiil Charges for services j ______________ J 2014 2013 2012 2011 2010 2009 2008 2007 2006 2005 67 191 • • • 192 • • • Riverside County Transportation Commission Fund Balances of Governmental Funds Last Ten Fiscal Years (Modified Accrual Basis) Fiscal Year 2014 2013 2012 2011 2010 ----2009 2008 2007 2006 2005 GENERAL FUND General fund· Nonspendable $ 257,721 $ 194,794 $ 157,957 $ 143,397 $ 253,819 Restricted 5,073,685 7,412,686 8,114,440 7,110,013 7,266,584 1 Committed 1,606,976 1 Assigned 5,258,703 5,232,871 5,412,830 6,270,944 4, 134,059 1 Total general fund $ 10,590, 109 $ 12,840,351 $ 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 Unreserved 3,348,711 3,238,251 2,877,923 2,014,480 2,215,643 Total general fund $ 10,105,419 $ 10,125,237 $ 9,948,038 $ 9,230,059 $ 8,520,480 ALL OTHER GOVERNMENTAL FUNDS All other governmental funds: Nonspendable $ 31,978,235 $ 3,274,483 $ 1,481,019 $ 5,389,775 $ 2,554,136 Restricted 988,908,077 606,072,061 560,412,373 570,450,515 535, 752,354 1 Total all other governmental funds $ 1,020,886,312 $ 609,346,544 $ 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 Unreserved, reported in: Special revenue funds 8,289,036 7,297,744 6,936,417 5,745,792 4,895,792 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 Source: Finance Department 1 In FY 2010 the Commission implemented GASB Statement No. 54, Fund Balance Reporting and Governmental Fund Type Definitions. Prior year amounts in this presentation have not been revised to reflect this change. 68 193 Revenues Sales taxes Transportation Uniform Mitigation Fee Intergovernmental Investment income Vehicle registration user fees Other Total revenues Expenditures Current: General Government Programs: Bicycle and pedestrian facilities CETAP Commuter assistance Commuter rail Highways Local streets and roads Motorist assistance Planning and programming Right of way management Regional arterials Transit and specialized transportation Oeb~service Principal Interest Cost of Issuance Intergovernmental distributions Capital ouUay Total expenditures Other financing sources (uses): Sales of capita! assets Capital lease Debt issuance Discount on debt issuance Premium on debt issuance Payment to refunded bond escrow agent Transfers in Transfers out Total other financing sources (uses) Net change in fund balances Debt service as a percentage of noncapital expenditures Source: Finance Department 2014 248,309,448 11,284,394 122,486,605 9,979,912 1,282,520 393,342,879 6,991,303 1,065,476 6,509,915 3,136,150 68,072,414 299,398,122 46,677,580 3,498,420 3,204,073 23,886,840 78,723,898 67,112,884 43,410,203 7,050,855 143,888 658,882,021 638,854,602 (2,433,315) 38,328,775 2013 $ 236,427,142 12,421,110 38,817,347 1,769,709 1,540,542 290,975,850 6,692, 187 956,308 954,700 2,868,356 27,118,480 118,750,336 44,594,891 3,563,581 3,712,596 17,047,135 55,659,188 6,824,654 15,404,719 220,443 304,367,574 60,000,000 Riverside County Transportation Commission Changes in Fund Balances of Governmental Funds Last Ten Fiscal Years 2012 $ 215.028,438 8,116,420 51,516,775 4,308,395 1,430,195 280,400,223 7,586,207 1,389,567 4,464,387 3,157,480 39,870,670 111,049,502 40,127,890 3,846,245 3,913,520 5,816,666 51,221,772 46,523,931 15,008,695 209,716 334, 186,248 40,000,000 (Modified Accrual Basis) 2011 184,212,628 9,157,863 40,012,488 4,524,219 2,878,380 240,785,578 8,340,263 1,940,499 5,490,993 2,816,392 35,482,511 75,011,698 36,856,925 3,530,695 4,674,397 1,270,487 29,362,894 44,699.650 109,607,230 11,296,268 1,493,196 147,297 372,021,395 170,000,000 (967,467) Fiscal Year 2010 2009 184,026,095 8,618,231 26,769,324 5,663,178 1,853,641 226,930,469 6,920,479 317,048 2,362,393 3,228,709 33,733,888 45,698,211 34,258,313 2,987.136 5,312,246 1,428,066 26,371,339 43,820,225 57,738,548 5,240,307 675,464 124,080 270,216,452 268,284,000 (278,685) (129,394,875) 197,608,774 10,957,420 105,512,656 13,567,938 1,677,374 1,876,349 331,200,511 5,368,677 2,747,151 35,809,396 5,155,263 40,704,106 165,100,551 45,661,155 2,623,184 9,193,944 1,399,316 20,948,530 77,417,741 33,646,475 12,026,942 975,833 1,055,997 459,834,261 117,127 53,716,000 2008 235,579,698 14,556,029 22,249, 107 23,744,305 1,684,088 2,072,972 299,886, 199 5,290,616 1,436,710 21,098,240 3,377,881 21,470,133 65,697,249 54,520,115 3,983,252 6,939,409 551,960 59,841,509 83,927,945 141,870,000 6,657,569 1,261,668 992,460 335,023 479,251,739 160,249,021 481,987,735 133,065,312 123,977,167 185,354,839 104,833,227 33,466,298 164,063,070 (481,987,735) (133,065,312) (123,977,167) (185,354,839) (104,833,227) (33,466,298) (164,063,070) 674,750,062 60,000,000 40,000,000 169,032,533 138,610,440 53,833,127 160,249,021 $ 409,210,920 $ 46,608,276 $ (13,786,025) $ 37,796,716 $ 95,324,457 (74,800,623) $ (19,116,519) 2007 258,699,886 40,757,248 5,498,660 23,897,399 1,681,130 2,175,372 332,709,695 5,545,466 760,840 5,433,499 3,097,534 14,044,435 48,359,404 60,099,526 2,408,612 5,586,992 631,996 30,756,287 75,567,829 30,225.589 6,564,973 974,193 161,268 290,218,443 4,240,148 50,000,000 34,745,015 (34,745,015) 54,240,148 96,731,400 32.5% 3 23.3% i 9.9% ===== ====3=1.=0%;;,1 12.7% 19.1% 5 9.3% 22.5% ' Debt service as a percentage of noncapital expenditures in 2008 increased significantly as a result of the refinancing of $110,005,000 of commercial paper, which is included in principal payments. ' Debt service as a percentage of noncapital expenditures in 2010 increased significantly as a result of the retirement of $53, 716,000 of commercial paper, which is included in principal payments. ' Debt service as a percentage of noncapital expenditures in 2011 increased significantly as a result of the retirement of $103,284,000 of commercial paper, which is included in principal payments. ' Right of way management expenditures were classified as highways or commuter rail expenditures beginning in 2012. 2006 $ 248, 163,558 85,228,383 4,365,183 11,639,575 1,629,087 2,143,330 353,169,116 4,674,157 848,959 3,549,683 2,883,352 10,570,931 37,073,826 60,389,876 2,280,646 4,884,556 622,498 19,462,949 62,527,276 28,669,418 7,679,019 236,058 1,092,091 290,461 247,735,756 11,360,556 34,517,083 (34,517,083) 11,360,556 ~ 14.7% 2005 $ 216,739,812 46,325,334 25,241,083 5, 146,325 1,541,216 3,118,002 298,111,772 3,827,427 1,021,637 8,600,659 2,583,679 7,580,484 36,340,818 53,333,169 2,191,061 3,621,810 580,224 22,174,406 55,905,814 27,228,073 8,400,410 2.580,124 706,228 179,818 236,855,841 30,005,000 37,050,167 (37,050, 167) 30,005,000 91,260,931 15.0% 5 Debt service as a percentage of noncapital expenditures in 2014 increased significantly as a resutt of the retirement of $60,000,000 of commercial paper, which is included in principal payments and interest payments and cost of issuance • suit of the issuance of $638,854,602 in debt. 19. 69 • • 20121 ---Apparel stores $ 1,672,482 General merchandise stores 3,174,022 Food stores 1,356,146 Eating & drinking 2,668,324 Household 930,068 Building materials 1,364,513 Automotive 7,009,138 Other retail sales 1,841,973 Total all other outlets 8,079,341 28,096,009 Measure A Ordinance 88·1 direct sa!es tax rate 0.50% Source: State Board of Equalization 1 Year represents most recent data available. • Riverside County Transportation Commission Sources of County of Riverside Taxable Sales by Business Type Last Ten Calendar Years (In Thousands) 2011 2010 2009 2008 2007 2006 2005 $ 1,505,821 $ 1,391,174 $ 1,293,271 $ 1,121,543 $ 1,171,013 $ 1,080,385 $ 990, 129 3,051,709 2,947,905 2,855,733 3,389,936 3,593,134 3,553,554 3,304,474 1,304,731 1,267,758 1,251,220 1,254,366 1,352,609 1,309,782 1,197,438 2,473,339 2,317,486 2,266,853 2,340,554 2,388,039 2,316,422 2,157,801 914,888 412,325 858,098 816,379 843,945 946,217 964,629 1,303,073 1,232,145 1,237,518 1,435,337 1,961,911 2,390,236 2,424,898 6,311,272 5,306,408 4,749,994 6,126,512 7,137,075 6,956,756 6,751,646 1,711,453 1,951,385 1,442,875 3,250,335 2,794,790 1,024,551 944, 155 7,065,212 6,326, 194 6,272,315 6,268,633 7,781,093 10,236,334 9,521,319 $ 25,641,498 $ 23, 152,780 $ 22,227,877 $ 26,003,595 $ 29,023,609 $ 29,816,237 $ 28,256,491 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 2012 Total all other outlets 29% Other retail sales 7% 5% Eating & drinking 9% Building materials 5% 70 195 • 2004 2003 $ 867,276 $ 746,015 3,026,335 2,671,971 1,079,972 1,028,392 2,007,338 1,775,146 862,551 691,051 2,596,661 1,678,347 6,240,712 5,198,391 1,191,029 592,415 7,365,274 7,327,407 $ 25,237, 148 $ 21,709,135 0.50% 0.50% • • • 196 • • • Riverside County Transportation Commission Direct and Overlapping Sales Tax Rates Last Ten Fiscal Years Fiscal Year Measure A Direct Rate 1 County of Riverside 2014 0.50% 2013 0.50% 2012 0.50% 2011 0.50% 2010 0.50% 2009 0.50% 2008 0.50% 2007 0.50% 2006 0.50% 2005 0.50% 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 % . 4 Effective January 1, 2013, the State of California increased the state sales tax rate by 0.25% . 71 197 8.00% 8.00% 7.75% 8.75% 8.75% 8.75% 7.75% 7.75% 7.75% 7.75% 4 3 1--- Riverside County Transportation Commission Principal Taxable Sales Generation by City Current Year and Nine Years Ago 2012 1 Taxable Sales (in Percentage of thousands) Rank City of Riverside 4,238,975 City of Corona 2,855,833 City ofT emecula 2,535,380 City of Palm Desert 1,470,982 City of Moreno Valley 1,275,922 City of Murrieta 1,035,828 City of Palm Springs 955,731 City of Hemet 859,861 City of Jurupa Valley 5 726,309 10 City of Indio 724,256 11 City of La Quinta 710,127 12 City of Lake Elsinore 665,409 13 City of Cathedral City 648,817 14 City of Perris 622,840 15 City of Eastvale' 490,881 16 City of Menifee' 449,121 17 City of Norco 429,119 18 City of Rancho Mirage 378,753 19 City of Beaumont 334,876 20 City of Coachella 302,053 21 City of San Jacinto 202,402 22 City of Blythe 169,341 23 City of Banning 165,579 24 City of Desert Hot Springs 128,734 25 City of Wildomar2 122,891 26 City of Indian Wells 87,861 27 City of Calimesa 60,894 28 City of Canyon Lake 15,611 29 Incorporated 22,664,386 Unincorporated 5,431,623 Countywide $ 28,096,009 California 558,387,250 Source: California State Board of Equalization for the calendar year indicated. 1 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. 4 City of Eastvale was incorporated on October 1, 2010. 5 City of Jurupa Valley was incorporated on July 1, 2011. $4,500,000 $4,000,000 $3,500,000 $3,000,000 $2,500,000 $2,000,000 $1,500,000 $1,000,000 $500,000 $· Taxable Sales by City 72 198 Total 15.1% 10.2% 9.0% 5.2% 4.5% 3.7% 3.4% 3.1% 2.7% 2.7% 2.5% 2.4% 2.3% 2.2% 1.7% 1.5% 1.5% 1.3% 1.2% 1.1% 0.7% 0.6% 0.6% 0.5% 0.4% 0.3% 0.2% 0.1% 80.7% 19.3% 100.0% • 2003 Taxable Sales (in Percentage of thousands) Rank Total 3,407,252 2 18.7% 2,055,770 3 11.3% 1,621,447 8.9% 1,211,069 6.6% 824,707 4.5% 453,067 11 2.5% 623,956 9 3.4% 673,955 8 3.7% N/A 531,686 10 2.9% 333,840 14 1.8% 394,323 13 2.1% 707,465 3.9% 331,046 15 1.8% N/A N/A 428,851 12 2.4% 298,849 16 1.6% 91,387 20 0.5% 146,254 18 0.8% 76,532 21 0.4% 140,223 19 0.8% 177,761 17 10% • 66,584 22 0.4% N/A 62,958 23 0.3% 31,544 24 0.2% 11,055 25 0.1% 14,701,581 80.6% 3,529,974 19.4% $ 18,231,555 100.0% 441,517,560 • • • • 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 $50,000,000 $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 $· Riverside County Transportation Commission Measure A Sales Tax Revenues by Program and Geographic Area Year Ended June 30, 2014 Special Revenue Funds General Western Fund County 2,800,000 35, 196,403 10,351,883 12,767,322 1,380,251 33,471,089 1,725,314 7,039,281 2,493,078 2,199,775 9,316,695 $ 2,800,000 $ 115,941,091 $ Geographic Distribution by Area Coachella Valley 23% Palo Verde 1 % General Fund Coachella Valley 18,235,730 12,765,011 5,470,719 36,471,460 Sales Tax Revenues by Program and Geographic Area 73 199 Palo Verde Total $ 2,800,000 35, 196,403 10,351,883 18,235,730 12,767,322 1,380,251 1,143,343 47,379,443 1,725,314 7,039,281 2,493,078 2,199,775 5,470,719 9,316,695 1, 143,343 $ 156,355,894 •Palo Verde ~-1 11 Coachella Valley i •Western County 11General Fund Riverside County Transportation Commission • Measure A Sales Tax by Economic Category Last Eight Calendar Years % of Total Economic Category 2013 1 2012 2011 2010 2009 2008 2007 2006 General retail 28.7 28.8 29.8 30.9 30.9 28.2 26.8 25.5 Transportation 27.0 26.9 27.1 25.0 22.8 24.9 26.1 26.5 Food products 16.1 16.2 16.4 17.0 17.8 16.0 14.4 13.3 Business to business 14.5 15.0 14.1 14.5 15.2 16.4 15.9 15.3 Construction 11.8 11.1 10.5 10.5 11.1 12.3 14.4 16.9 Miscellaneous 1.9 2.0 2.1 2.1 2.2 2.2 2.4 2.5 Total 100.0 100.0 100.0 100.0 100.0 100.0 100.D 100.0 Source: MuniServices LLC. Prior years' information is not available. 1 Year represents most recent data available. • • l8o • • • Riverside County Transportation Commission Measure A Revenues and Pledged Revenue Coverage 1 Last Ten Fiscal Years Sales Tax Revenue Bonds Measure A Sales Total Debt Net Measure A Tax Revenue Senior Lien Subordinate Service Sales Tax Growth (Decline) Senior Lien Debt Coverage Lien Debt Total Debt Coverage Fiscal Year Revenues 2 Rate Service Ratio Service Service Ratio 2014 $ 156,355,894 4.64% $ 50,499,417 3.10 $ $ 50,499,417 3.10 2013 149,428, 124 10.70% 22,156,116 6.74 22, 156, 116 6.74 2012 134,984,307 9.35% 21,503,582 6.28 21,503,582 6.28 2011 123,439,833 7.78% 12,651,386 9.76 12,651,386 9.76 20103 114,526,254 -4.31% 8,918, 183 12.84 8,918, 183 12.84 2009 4 119,688,289 -16.03% 34,020,724 3.52 1,452,634 35,473,358 3.37 2008 142,537,548 -7.77% 34,002,732 4.19 1,470,388 35,473, 120 4.02 2007 154,539,723 -1.71% 34,005,357 4.54 1,469,588 35,474,945 4.36 2006 157,236,314 13.18% 34,012,634 4.62 1,470,587 35,483,221 4.43 2005 138,921,247 15.23% 34,013,294 4.08 1,472,237 35,485,531 3.91 Source: Finance Department This schedule meets the requirements for Continuing Disclosure of historical Measure A sales tax revenues. Sales tax revenue bonds are backed by the sales tax revenues, net of Board of Equalization fees, during the fiscal year. In FY 2010 the 2008 bonds related to the 2009 Measure A program were current refunded. The payment to escrow agent is excluded from debt service. In FY 2009 all bonds related to the 1989 Measure A program matured as the 1989 Measure A program expired on June 30, 2009 . 75 201 Sales Tax Toll Revenue Commercial Year Revenue Bonds Bonds Paper 2014 766,500,000 $ 180,122,129 2013 311,400,000 60,000,000 2012 317,138,111 2011 323,537,07 4 2010 180,731,699 83,284,000 2009 127,538,888 110,000,000 2008 163,738,235 2007 65,495,000 80,005,000 2006 95,695,000 30,005,000 2005 124,335,000 30,005,000 Riverside County Transportation Commission Ratios of Outstanding Debt by Type Last Ten Fiscal Years Governmental Activities MSHCP Contract Funding Remediation Payable Liability Liability $ 18,000,000 1,576,406 1,100,000 2,100,000 3,100,000 4,100,000 Total Percentage Capital Governmental of Personal Leases Activities Income 1 $ 72,011 $ 966,270,546 N/A 6,289 371,406,289 N/A 30,943 317, 169,054 0.44% 54,874 323,591,948 0.48% 78,104 264,093,803 0.41% 100,652 237,639,540 0.38% 164,838,235 0.26% 147,600,000 0.24% 25,591 128,825,591 0.22% 55,009 158,495,009 0.30% 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. 1 See the Schedule of Demographic and Economic Statistics on page 79 for personal income and population data. 76 202 • Debt per Capita 1 $ 423.81 167.47 142.38 145.91 121.16 111.01 78.39 72.00 65.20 83.61 • • • Measure A Ordinance No. 02·001, as amended by Ordinance No.10·00i2 Total debt limit authorized Amount of debt applicable to debt limit Legal debt margin % of debt to legal debt limit Measure A Ordinance No. 88·1, as amended by Ordinance 92-13 Total debt limit authorized Amount of debt applicable to debt limit legal debt margin % of debt to legal debt limit Source: Finance Department 2014 975,000,000 766,500,000 208,50~ 78.6% • Riverside County Transportation Commission Computation of Legal Debt Margin1 last Ten Fiscal Years Fiscal Year 2013 2012 2011 2010 2009 $ 975,000,000 $ 975,000,000 $ 975,000,000 $ 500,000,000 $ 500,000,000 371,400,000 318,200,000 324,700,000 264,284,000 236,395,000 $ 603,600,000 $ 656,800,000 $ 650,300,000 $ 235,716,000 $ 263,605,000 38.1% 32.6% 33.3% 52.9% 47.3% 525,000,000 525~ 0.0% 2008 $ 500,000,000 126,395,000 $ 373,605,000 25.3% $ 525,000,000 33,630,000 $ 491,370,000 6.4% 1 The Commission's debt limits were approved by the voters of Riverside County as part of the sales tax ordinances and are specific to the Commission; accordingly, there are no overlapping debt considerations. 2007 $ 500,000,000 80,005,000 $ 419,995,000 16.0% $ 525,000,000 65,495,000 $ 459,505,000 12.5% 2 Ordinance No. 02-001 was approved by a 213 majority of the voters in November 2002. Jn November 2010, a majority of the voters approved Ordinance No. 10-002 to increase the debt limit from $500 million to $975 million. 3 Ordinance No. 88-1 expired on June 30, 2009. All outstanding debt related to Ordinance 88-1 matured prior to the expiration date. 2006 2005 $ 500,000,000 $ 500,000,000 30,005,000 30,005,000 $ 469,995,000 $ 469,995,000 6.0% 6.0% $ 525,000,000 $ 525,000,000 95,695,000 124,335,000 $ 429,305,000 $ 400,665,000 18.2% 23.7% Measure A Ordinance No. 02-001, as amended by Ordinance No. 10-002 Measure A Ordinance No. 88-1, as amended by Ordinance 92-1 $1,200,000.000 $600,000,000 $1,000,000,000 $500,000,000 $800,000,000 $400,000,000 $600,000,000 $300,000,000 $400,000,000 $200,000,000 $200,000,000 $100.000,000 $-2014 2013 2012 2011 2010 2009 2008 2007 2006 2005 $-2009 2005 2008 2007 2006 --------------·----------· --·----··---··-·-·· -... 77 203 • • • • 204 • Calendar Year 2014 2013 2012 2011 2010 2009 2008 2007 2006 • 2005 Sources: • Riverside County Transportation Commission Demographic and Economic Statistics for the County of Riverside Last Ten Calendar Years Per Capita Personal Income Personal Unemployment Population 1 (thousands)2 Income 2 Rate 3 2,279,967 N/A N/A N/A 2,255,059 NIA N/A 10.3% 2,227,577 $ 72,015,057 $ 31,742 12.2% 2,217,778 67,024,780 29,927 12.4% 2,179,692 64,376,498 29,222 14.7% 2,140,626 63,228,086 29,748 13.4% 2,102,741 64,503,728 30,676 8.5% 2,049,902 61,023,518 29,769 6.0% 1,975,913 57,666,983 29,185 5.0% 1,895,695 52,850,398 28,157 5.4% 1 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 . 78 205 Riverside County Transportation Commission Employment Statistics by Industry for the County of Riverside Calendar Year 2012 and Nine Years Prior % of Total Industry Type 2012 1 Employment Agricultural services, forestry, fishing and other 12,900 2.3% Mining 400 0.0% Construction 35,200 6.2% Manufacturing 39,500 6.9% Transportation, warehousing, and public utilities 21, 100 3.7% Wholesale trade 20,600 3.6% Retail trade 81,100 14.2% Professional & business services 60,300 10.6% Education & health services 75,900 13.3% Leisure & hospitality 72,200 12.7% Finance, insurance, and real estate 19,300 3.4% Other services 19,200 3.4% Federal government, civilian 6,800 1.2% State government 15,700 2.8% Local government 89,600 15.7% Total employment 569,800 100.0% Source: State of California Economic Development Department 1 Year represents most recent data available. 79 206 • % of Total 2003 Employment 16,200 3.0% 500 0.1% 60,800 11.4% 50,000 9.3% 12,300 2.3% 16,300 3.0% 70,000 13.1% 58,400 10.9% 56,700 10.6% 60,600 11.3% 19,500 3.6% • 18,000 3.4% 6,400 1.2% 13,900 2.7% 76,000 14.2% 535,600 100.0% • • Function/Program Management services and administration Planning and programming Rail operations and maintenance Specialized transit/transportation Commuter assistance Motorist assistance Capital project development and delivery Total full-time equivalents Source: Finance Department • • Riverside County Transportation Commission Full-time Equivalent Employees by Function/Program Last Ten Fiscal Years As of June 30 2014 2013 2012 2011 2010 2009 13.8 14.1 13.9 12.7 8.9 12.7 5.9 4.9 5.1 5.2 5.5 5.1 3.1 2.9 3.3 3.1 3.3 2.9 3.4 2.5 2.5 2.6 2.6 2.2 1.7 1.8 1.6 1.6 1.8 1.2 0.9 0.9 1.2 0.9 0.7 0.8 15.2 13.9 12.3 11.9 14.2 11.1 44.0 41.0 40.0 38.0 37.0 36.0 80 207 2008 2007 2006 2005 17.6 15.0 12.2 12.7 5.4 6.4 5.0 3.4 3.1 2.8 3.1 1.6 2.0 2.4 2.3 1.4 1.3 1.3 2.1 2.1 0.7 0.7 0.8 0.8 7.9 6.4 4.7 3.0 38.0 35.0 30.2 25.0 • • • 208 • 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 transiUtransportation: Specialized transit grants awarded Commuter assistance: Club Ride members Rideshare Incentive members Rideshare Plus Rewards members Incoming 1-866-RIDESHARE telephone calls Rideshare Connection bulletins produced RideSmart Tips produced Rideguides produced Commuter Exchange events Motorist assistance: Call boxes Calls made from call boxes Contracted Freeway Service Patrol vehicles Vehicles assisted by Freeway Service Patrol IES 11 web visits IES 11 call volumes Transportation Uniform Mitigation Fee program: Approved regional arterial projects Measure A program: Highways Commuter rail Regional arterials Local streets and roads Specialized transit and commuter assistance Total program expenditures Source: Commission Departments 1 This brochure was discontinued beginning FY 2007/08. 2014 12,478 5,056 4,385 3,037 57.4% 34.7% 45.3% 22 NIA 1,106 5,770 2,625 10 NIA 10,059 54 570 4,685 21 44,278 443,359 306, 108 24 $299,398,122 56,148,017 1,441 46,677,580 13,378,223 $415,603,383 2013 11,635 4,911 4,317 2,407 57.0% 34.9% 42.2%1 22 NIA 926 6,786 2,527 13 NIA 14,813 55 580 5,337 21 43,633 399,730 351,161 24 $ 118,750,336 15,895,661 1,787 44,594,891 11,927,634 $191,170,309 • Riverside County Transportation Commission Operating Indicators Last Ten Fiscal Years 2012 11,675 5,279 4,142 2,254 58.5% 31.3% 49.7% 21 NIA 1,056 4,848 1,531 11 NIA 15,628 52 594 5,043 21 42,748 341,716 362,957 24 2011 11,321 5,177 3,855 2,289 59.8% 31.1% 54.6% 22 NIA 1,061 5,518 1,257 13 NIA 29,052 52 613 5,251 22 45,751 244,277 489,036 24 111,049,502 $ 75,011,698 19,690, 126 22,632,065 124 8,638,637 40,127,890 36,856,925 11,930,437 11,262,588 182,798,079 $ 154,401 913 As of June 30 2010 11,340 5, 124 4,011 2,205 52.5% 28.3% 49.3% 22 NIA 1,131 7,080 2, 145 NIA NIA 43,319 so 614 5,934 22 48,312 NIA NIA 24 2009 12,224 5,269 4,611 2,344 51.0% 37.3% 53.0% 22 7,378 NIA NIA 2,423 NIA NIA 34,940 73 614 6,574 20 43,119 NIA NIA 24 2008 12,304 5,184 4,859 2,261 53.01% 42.60% 45.53%1 14 5,860 NIA NIA 3,709 NIA NIA 23,121 71 630 7,543 20 45,500 NIA NIA 24 45,698,211 $165, 100,551 $ 65,697,249 20,312,056 32,089,238 12,419,675 11,920,846 12,645,090 18,220,540 34,258,313 45,661,155 54,520,115 10,161,780 9,838,990 9,071,302 $122,351,206 $265 335,024 $159,928,881 81 209 2007 11,696 4,769 4,651 2,276 67.07% 42.191% 49.02% 15 4,436 NIA NIA 2,613 NIA 45,304 24,676 60 682 9,595 17 40,025 NIA NIA 24 48,359,404 14,044,435 30,756,287 59,202,631 6,358,224 $158,720 981 2006 11,391 4,370 4,149 2,107 48.5% 45.5% 57.2% 3,901 NIA NIA 2,433 NIA 27,790 NIA 23 979 15,390 15 31,838 NIA NIA 24 37,073,826 2,784,423 10,350,500 60,389,876 7,887,298 $118,485,923 2005 9,721 4,566 3,634 f,876 46.9% 48.7% 107.0% 10 2,837 NIA NIA 801 NIA 32,379 NIA 5 1,058 19,945 15 32,542 NIA NIA 24 36,340,818 2,250, 187 10,056,326 53,333, 169 7,458,994 $109,439,494 • • • • 210 • Commuter rail: Transit centers owned and managed Commuter rail stations owned and managed Miles of commuter rail easements Commuter Assistance: Commuter Exchange Vehicle Source: Commission Departments • • Riverside County Transportation Commission Capital Asset Statistics by Program Last Ten Fiscal Years As of June 30 2014 2013 2012 2011 2010 2009 ---- 5 5 5 5 5 5 104.6 104.6 104.6 104.6 104.6 104.6 82 211 2008 2007 2006 2005 ---- 5 5 5 5 104.6 104.6 104.6 104.6 • Local Transportation Fund of the County of Riverside, as Administered by the Riverside County Transportation Commission Financial and Compliance Report Year Ended June 30, 2014 212 Assurance ,. Tax• Consulting • • • 213 • • • Contents Independent Auditor's Report on the Financial Statements and Supplementary Information Financial Statements Balance Sheet Statement of Revenues, Expenditures and Change in Fund Balance Notes to Financial Statements Supplementary Information Schedule of Allocations and Disbursements Schedule of Unclaimed Apportionments (Articles 4 and 8) Schedule of Unclaimed Apportionments (Article 3) 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 214 1-2 3 4 5-7 8 9 10 11-12 • • • 215 • • • McGladrey LLP I McGladrey Independent Auditor's Report on the Financial Statements and Supplementary Information Board of Commissioners Riverside County Transportation Commission Riverside, CA Report on the Financial Statements We have audited the accompanying financial statements of the Local Transportation Fund (the 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, 2014, and the related notes to the financial statements, which collectively comprise the Fund's financial statements as listed in the table of contents. Management's Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Auditor's Responsibility 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 from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the Fund's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Fund's internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. Opinion In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the Fund of the County of Riverside, as administered by the Commission, as of June 30, 2014 and the respective changes in financial position for the year then ended, in accordance with accounting principles generally accepted in the United States of America. Emphasis of Matter As discussed in Note 1 to the financial statements, the financial statements present only the Fund and do not purport to, and do not, present fairly the financial position of the Commission or the County of Riverside, California, as of June 30, 2014 and the changes in financial position for the year then ended, in accordance with accounting principles generally accepted in the United States of America. Our opinion is not modified with respect to this matter. Other Matters Required Supplementary Information Management has omitted management's discussion and analysis that accounting principles generally accepted in the United States of America require to be presented to supplement the financial statements. Such missing information, although not a part of the financial statements, is required by the Governmental Accounting Standards Board, which 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. Other Information Our audit was conducted for the purpose of forming an opinion on the financial statements that collectively comprise the Fund's financial statements. 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. The supplementary 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. Such • 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 supplementary information is fairly stated, in all material respects, in relation to the financial statements as a whole. Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated October 31, 2014 on our consideration of the Fund's internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is 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 internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the Fund's internal control over financial reporting and compliance. Irvine, CA October 31, 2014 2 217 • • • • Local Transportation Fund of the County of Riverside, as Administered by the Riverside County Transportation Commission Balance Sheet June 30, 2014 Assets Cash and investments in Riverside County Pooled Investment Fund Accounts receivable Interest receivable Total assets Liabilities and Fund Balance Liabilities: Accounts payable Total liabilities Restricted: Unapportioned Local Transportation Funds Rail and bus transit and local streets and roads apportionments Bicycle and pedestrian projects Total fund balance Total liabilities and fund balance See Notes to Financial Statements . 3 218 $ 101,818,770 14,843,497 79,523 $ 116,741,790 $ 864,481 864,481 9,214,419 102,038,660 4,624,230 115,877 ,309 $ 116 741 790 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, 2014 Revenues: Sales taxes Interest Total revenues Expenditures: Bicycle and pedestrian projects Transit Planning and programming Total expenditures Excess of revenues over expenditures Fund balance, beginning of year Fund balance, end of year See Notes to Financial Statements. 4 219 • $ 77,544,177 486,177 78,030,354 1,065,476 62,238,715 4,091,811 67,396,002 10,634,352 105,242,957 $ 115,877,309 • • • • • 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 7.50 percent statewide sales tax collected in the County by the State Board of Equalization (State). The accounting policies of the Fund 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, 2014 and the changes in its financial position for the year then ended, in conformity with accounting principles generally accepted in the United States of America. Basis of accounting: In accordance with the requirements for governmental funds, the modified accrual basis of accounting is followed in the Fund. Under the modified accrual basis of accounting, expenditures are recorded when they are expected to be liquidated with expendable available resources, and revenue is recorded when it becomes both measurable and available. "Measurable" means the amount of the transaction can be determined, and "available" means collectible within the current period or soon enough thereafter to be used to pay liabilities of the current period. For this purpose, the Commission considers revenues to be available if they are collected within 180 days of the end of the current fiscal period. Those revenues susceptible to accrual include sales taxes collected and held by the 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, 2014. 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, 2014 . 5 220 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 as set forth by enabling State 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, 2014, the Commission had $101,818,770 invested in the RCPIF, with an average maturity of 481 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, 2014, the .Commission's investment in the RCPIF was rated Aaa-/bf 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. 6 221 • • • • 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, 2014, 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 Bicycle and pedestrian projects: Allocated and unclaimed Unallocated Total for bicycle and pedestrian projects Unapportioned Local Transportation Funds 7 222 $ 2,000,000 21,646,399 3,381,035 61,074,766 88, 102,200 796,738 12,050,389 12,847,127 29,500 1,059,833 1,089,333 $ 102,038,660 $ 2,991,317 1,632,913 $ 4,624,230 $ 9 214 419 • Supplementary Information • • 223 • 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, 2014 SB 821 Article 3 Article 4 Allocations Disbursements Allocations Disbursements Expenditures: City of Banning $ 180,000 $ 180,000 $ 1,029.444 $ 1,029.444 $ City of Beaumont 150,843 1,768,870 1,768,870 City of Coachella 75,000 1,686,917 1,686,917 City of Eastvale 225,003 47,014 City of Hemet 126,290 59,790 City of Indio 158,900 84,000 City of Jurupa Valley 70,000 City of Lake Elsinore 87,908 87,908 City of Menifee 99,375 City of Moreno Valley 475,000 220,333 City of Perris 50,000 48,931 City of Riverside 445,080 2,562,758 2,562.758 City of San Jacinto 75,000 30,000 City of Wildomar 781,394 County of Riverside: Auditor/Controller Road Department 1,057,000 307,500 Palo Verde Valley Transit Agency 867, 172 837,672 Commission 11,029,025 9,029,025 Riverside Transit Agency 48.441,393 34,553,300 SCAG Sunline Transit Agency 11,567.467 10,770,729 4,056,793 $ 1,065.476 $ 78,953,046 $ 62,238.715 $ • Deobligation (10,507 ,058) (10,507,058) 8 224 Article 3 Planning, Programming and Administrative Allocations Disbursements $ $ 12,000 12,000 3.423,849 3.423,849 655,962 655,962 $ 4,091,811 $ 4,091,811 Allocations $ 1,209.444 1,919,713 1.761,917 225,003 126,290 158,900 70,000 87,908 99,375 475,000 50.000 3,007,838 75,000 781,394 12,000 1,057,000 867, 172 14.452,874 48.441.393 655,962 11,567.467 $ __ 87,101,650 • Totals Reimbursements Unclaimed Disbursements (Expirations), net Amount $ 1,209.444 $ $ 1.768,870 150,843 1,686,917 75,000 47,014 177,989 59,790 66,500 84,000 74,900 70,000 87,908 99,375 220,333 254,667 48,931 1,069 2,562,758 445,080 30,000 45,000 781,394 12,000 307,500 749,500 837,672 29,500 12.452,874 2,000,000 34,553,300 (10,507,058) 3,381,035 655,962 10,770,729 796,738 $_ 67 ,396,002 $ (10,507,058) $ 9, 198,590 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, 2014 I Fiscal Year 2013/14 I Prior Fiscal Year I Amounts Unclaimed Amounts Unclaimed Interest Apportionment Claimed Apportionment Apportionment Claimed Apportionment Allocation Western County: Rail Bus Coachella Valley Palo Verde Valley: Transit Unallocated Total transportation Auditor/Controller Commission administration Commission planning SCAG planning Total administration and planning $ 12,852,879 $ 8,337,200 45,569,298 36,477,524 14,225,864 10,731,169 884, 138 782,388 73,532, 179 56,328,281 12,000 12,000 800,000 800,000 2,623,849 2,623,849 655,962 655,962 4,091,811 4,091,811 $ 4,515,679 $ 19, 717, 783 $ 691,825 $ 19,025,958 $ 104,762 9,091,774 60, 192,207 5, 123,765 55,068,442 295,585 3,494,695 9,333,672 39,560 9,294, 112 58,320 101,750 772,782 55,284 717,498 3,841 264,955 264,955 1,289 17,203,898 90,281,399 5,910,434 84,370,965 463,797 $ Total Unclaimed Apportionment June 30, 2014 23,646,399 64,455,801 12,847,127 823,089 266,244 102,038,660 Total apportionments $ 77,623,990 $ 60,420,092 $ 17,203,898 $ 90,281,399 $ 5 910 434 $ 84 370 965 $ 463 797 $ 102,038,660 • 2~ • • • • • 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, 2014 Unclaimed Apportionment Unclaimed Interest Apportionment July 1, 2013 Apportionment Reimbursements Disbursements Allocations June 30, 2014 Bicycle and pedestrian projects $ 3,999,930 $ 1 667 396 $ 10 226 $ 1,065,476 $ 22,380 $ 4,624,230 • • • 227 • • • McGladtty llP _McGladrey 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, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States, the financial statements of the Local Transportation Fund (the 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, 2014, and the related notes to the financial statements, and have issued our report thereon dated October 31, 2014. Internal Control Over Financial Reporting In planning and performing our audit of the financial statements, we considered the Fund's internal control over financial reporting (internal control) to determine the audit procedures that are appropriate in the circumstances for the purpose of expressing our opinion on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the Fund's internal control. Accordingly, we do not express an opinion on the effectiveness of the Fund's internal control. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the Fund's financial statements will not be prevented, or detected and corrected, on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies. Given these limitations, during our audit, we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified. Compliance and Other Matters As part of obtaining reasonable assurance about whether the Fund's financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards . 11 Purpose of this Report The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the Fund's internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the Fund's internal control and compliance. Accordingly, this communication is not suitable for any other purpose. Irvine, CA October 31, 2014 12 229 • • • • 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, 2014 230 Assurance •Tax• Consulting • • • 231 • • • Contents Independent Auditor's Report on the Financial Statements and Supplementary Information Financial Statements Balance Sheet Statement of Revenues, Expenditures and Change in Fund Balance Notes to Financial Statements Supplementary Information Schedule of Allocations and Disbursements Approved During the Year 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 232 1-2 3 4 5-7 8 9-10 • • • 233 • • • McGladrt!y LL!' I McGladrey Independent Auditor's Report on the Financial Statements and Supplementary Information Board of Commissioners Riverside County Transportation Commission Riverside, CA Report on the Financial Statements We have audited the accompanying financial statements of the State Transit Assistance Fund (the 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, 2014, and the related notes to the financial statements, which collectively comprise the Fund's financial statements as listed in the table of contents. Management's Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Auditor's Responsibility 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 from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the Fund's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Fund's internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. Opinion In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the Fund of the County of Riverside, as administered by the Commission, as of June 30, 2014, and the respective changes in financial position for the year then ended, in accordance with accounting principles generally accepted in the United States of America. Emphasis of Matter As discussed in Note 1 to the financial statements, the financial statements present only the Fund and do not purport to, and do not, present fairly the financial position of the Commission as of June 30, 2014 and the changes in financial position for the year then ended, in accordance with accounting principles generally accepted in the United States of America. Our opinion is not modified with respected to this matter. Other Matters Required Supplementary Information Management has omitted management's discussion and analysis that accounting principles generally accepted in the United States of America require to be presented to supplement the 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. Other Information Our audit was conducted for the purpose of forming an opinion on the financial statements that collectively comprise the Fund's financial statements. 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. • The supplementary 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. Such 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 supplementary information is fairly stated, in all material respects, in relation to the financial statements as a whole. Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated October 31, 2014 on our consideration of the Fund's internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is 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 internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the Fund's internal control over financial reporting and compliance. Irvine, CA October 31, 2014 2 235 • • • • State Transit Assistance Fund of the County of Riverside, as Administered by the Riverside County Transportation Commission Balance Sheet June 30, 2014 Assets Cash and investments Accounts receivable Interest receivable Total assets Liabilities and Fund Balance Liabilities Accounts payable Total liabilities Fund Balance Restricted allocations available for programming Restricted for unclaimed allocations Total fund balance Total liabilities and fund balance See Notes to Financial Statements . 3 236 $ 51,890,555 3,911,053 42,223 $ 55,843,831 $ 340,865 340,865 45,330,975 10,171,991 55,502,966 $ 55,843,831 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, 2014 Revenues: Sales taxes Interest Total revenues Expenditures: Transit Net change in fund balance Fund balance, beginning of year Fund balance, end of year See Notes to Financial Statements. 4 237 $ 14,409,377 280,938 14,690,315 14,880,837 (190,522) 55,693,488 $ 55,502,966 • • • • • • 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 Significant Accounting Policies The Riverside County Transportation Commission (the Commission), in its capacity as the transportation planning agency for the County of Riverside, California (the County), is responsible for administering funds provided through the State Transit Assistance Program, which was created in 1979 under Chapter 161 (SB 620) of the California statutes to provide a second source of Transportation Development Act funding for the development of transit systems. The funds are derived from fuel sales tax revenue and are budgeted through legislation and appropriated to the State Controller's Office (the State) for allocation to local agencies. The accounting policies of the State Transit Assistance Fund (the Fund) conform to accounting principles generally accepted in the United States as applicable to governmental units. A summary of the Commission's significant accounting policies is as follows: Presentation: The accompanying financial statements of the Fund are intended to present the financial position and the changes in financial position of only that portion of the governmental activities of the Commission that is attributable to the transactions of the Fund of the Commission. They do not purport to, and do not, present fairly the financial position of the Commission as of June 30, 2014 and the changes in its financial position for the year then ended, in conformity with accounting principles generally accepted in the United States of America . Basis of accounting: In accordance with the requirements for governmental funds, the modified accrual basis of accounting is followed in the Fund. Under the modified accrual basis of accounting, expenditures are recorded when they are expected to be liquidated with expendable available resources, and revenue is recorded when it becomes both measurable and available. "Measurable" means the amount of the transaction can be determined, and "available" means collectible within the current period or soon enough thereafter to be used to pay liabilities of the current period. For this purpose, the Commission considers revenues to be available if they are collected within 180 days of the end of the 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 . 5 238 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 Significant Accounting Policies (Continued) Fund balance restrictions: The Fund reports restricted fund balances to show the level of constraint governing the use of the funds as set forth by enabling State legislation. The restricted fund balance for allocations available for programming represents amounts apportioned but not allocated to claimants. The restricted fund balance for unclaimed allocations represents amounts allocated by the Commission and due to claimants but not yet paid, as claimants have not yet provided the appropriate claim documentation to the Commission as of June 30, 2014. 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. Note 2. Cash and Investments Cash and investments at June 30, 2014 consist of the following: Cash and investments with County Treasurer Cash in bank $ 51,890,008 547 $ _ ~1L~90+£??_ • 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, 2014, the Commission had $51,890,008 invested in the RCPIF, with an average maturity of 481 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, 2014, the Commission's investment in the RCPIF was rated Aaa-/bf 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. 6 239 • • • • 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, 2014, 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 Bus Coachella Valley Palo Verde Valley Restricted for unclaimed allocations: Western County: Commuter rail City of Banning City of Beaumont City of Corona City of Riverside Riverside Transit Agency Coachella Valley: Sun line Transit Agency Palo Verde Valley: Palo Verde Valley Transit Agency Total fund balance 7 240 $ 11,904,353 27,880,790 5,359,242 186,590 45,330,975 100,000 537,356 394,935 1,743,454 460,002 1,793,501 5,002,256 140,487 10,171,991 $ 55,502,966 • Supplementary Information • • 241 • • • 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, 2014 Recipient Western County: City of Banning City of Beaumont City of Corona City of Riverside Riverside Transit Agency Total Western County Sunline Transit Agency Palo Verde Valley Transit Agency Current Year $ $ ·a 242 Allocation - 326,267 293,283 4,000 752,066 1,375,616 2,831,865 31,000 4,238,481 $ $ California Code of Regulations Amount Section No. Disbursed Reference 73,958 6731 206,426 6731 6731 33,748 6731 13,036,341 6730 13,350,473 1,470,046 6730 60,318 6730 14,880,837 • • • 243 • • • McGladN11y LLP I McGladrey 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, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of the State Transit Assistance Fund (the 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, 2014, and the related notes to the financial statements, and have issued our report thereon dated October 31, 2014. Internal Control Over Financial Reporting In planning and performing our audit of the financial statements, we considered the Fund's internal control over financial reporting (internal control) to determine the audit procedures that are appropriate in the circumstances for the purpose of expressing our opinion on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of Fund's internal control. Accordingly, we do not express an opinion on the effectiveness of Fund's internal control. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the Fund's financial statements will not be prevented, or detected and corrected, on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified. Compliance and Other Matters As part of obtaining reasonable assurance about whether the Fund's financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards . 9 Purpose of This Report The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the Fund's internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the Fund's internal control and compliance. Accordingly, this communication is not suitable for any other purpose. Irvine, CA October 31, 2014 10 245 • • • • Proposition 1 B Rehabilitation, Safety and Security Project Accounts, Accounts of the Riverside County Transportation Commission Financial and Compliance Report Year Ended June 30, 2014 I 246 Assurance •Tax• Consulting • • • 247 • • • Contents Independent Auditor's Report on the Financial Statements and Supplementary Information Financial Statements Balance Sheets Statements of Revenues, Expenditures and Change in Account Fund Balance Notes to Financial Statements Supplementary Information Combining Balance Sheets-By Project Combining Statements of Revenues, Expenditures and Change in Account Fund Balance-By Project 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 248 1-2 3 4 5-7 8-9 10-11 12-13 • • • 249 • • • McGladrey LLP IMcGladrey Independent Auditor's Report on the Financial Statements and Supplementary Information Board of Commissioners Riverside County Transportation Commission Riverside, CA Report on the Financial Statements We have audited the accompanying financial statements of the Proposition 1 B Rehabilitation, Safety and Security Project Accounts (the Accounts), accounts of the Riverside County Transportation Commission (the Commission), as of and for the years ended June 30, 2014 and 2013, and the related notes to the financial statements, which collectively comprise the Accounts' financial statements as listed in the table of contents. Management's Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. · Auditor's Responsibility Our responsibility is to express opinions 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 audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the Accounts' preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Accounts' internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. Opinions In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the Accounts of the Commission as of June 30, 2014 and 2013, and the respective changes in financial position for the years then ended, in accordance with accounting principles generally accepted in the United States of America. Emphasis of Matter As discussed in Note 1 to the financial statements, the financial statements present only the Accounts and do not purport to, and do not, present fairly the financial position of the Commission as of June 30, 2014 and 2013, and the changes in financial position for the years then ended, in accordance with accounting principles generally accepted in the United States of America. Our opinion is not modified with respected to this matter. Other Matters Required Supplementary Information Management has omitted management's discussion and analysis that accounting principles generally accepted in the United States of America require to be presented to supplement the 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 reportirig for placirig the financial statements in an appropriate operational, economic or historical context. Our opinion on the financial statements is not affected by this missing information. Other Information Our audits were conducted for the purpose of forming opinions on the financial statements that collectively comprise the Accounts' financial statements. The schedules listed in the table of contents as supplementary information are presented for purposes of additional analysis arid are not a required part of the financial statements. • The supplementary 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. Such information has been subjected to the auditing procedures applied in the audits 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 supplementary information is fairly stated, in all material respects, in relation to the financial statements as a whole. Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our reports dated October 31, 2014 and November 6, 2013 on our consideration of the Accounts' internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of 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 internal control over financial reporting or on compliance. Those reports are an integral part of an audit performed in accordance with Government Auditing Standards in considering the Accounts' internal control over financial reporting and compliance. Irvine, CA October 31, 2014 2 251 • • • Proposition 1 B Rehabilitation, Safety and Security Project Accounts, Accounts of the Riverside County Transportation Commission Balance Sheets June 30, 2014 and 2013 Assets PTMISEA Cash and inl.€stments in Ril.€rside County Pooled ln'..estment Fund $ 8,051,991 Interest receivable 4,027 Total assets $ 8,056,018 Liabilities and Account Fund Balance Liabilities Accounts payable $ 241, 177 Total liabilities 241, 177 Account Fund Balance Restricted: Rail projects 7,814,841 Total account fund balance 7,814,841 Total liabilities and account fund balance $ 8,056,018 See Notes to Financial Statements. 2014 CTSGP-CTAF $ 980,244 597 $ 980,841 $ $ --980,841 980,841 980,841 3 252 • 2013 Total PTMISEA CTSGP-CTAF Total $ 9,032,235 $ 1,697,066 $ 775,952 $ 2,473,018 4,624 1,200 392 1,592 $ 9,036,859 $ 1,698,266 $ 776,344 $ 2,474,610 $ 241, 177 $ 311, 182 $ -$ 311, 182 241, 177 311, 182 -311, 182 8,795,682 1,387,084 776,344 2, 163,428 8,795,682 1,387,084 776,344 2, 163,428 $ 9,036,859 $ 1,698,266 $ 776,344 $ 2,474,610 Proposition 18 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, 2014 and 2013 2014 2013 PTMISEA CTSGP-CTAF Total PTMISEA CTSGP-CTAF Total Revenues: State allocations $ 6,654,941 $ 355,748 $ 7,010,689 $ -$ 350,248 $ 350,248 Interest 7,935 2,285 10,220 5,436 1,770 7,206 Total revenues 6,662,876 358,033 7,020,909 5,436 352,018 357,454 Expenditures: Rail 235,119 153,536 388,655 -218,781 218,781 Excess of revenues over (under) expenditures 6,427,757 204,497 6,632,254 5,436 133,237 138,673 Other financing sources (uses): Transfers in - --1,385, 101 -1,385, 101 Transfers out -- -(1,385,101) -(1,385,101) Total other financing sources (uses) Net change in account fund balance 6,427,757 204,497 6,632,254 5,436 133,237 138,673 Account fund balance, beginning of year 1,387,084 776,344 2, 163,428 1,381,648 643,107 2,024,755 Account fund balance, end of year $ 7,814,841 $ 980,841 $ 8,795,682 $ 1,387,084 $ 776,344 $ 2, 163,428 See Notes to Financial Statements. • • • • • • 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 Nature of operations: On November 7, 2006, the voters of California approved the Highway Safety, Traffic Reduction, Air Quality, and Port Security Bond Act of 2006 (Proposition 1 B). Proposition 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 (Caltrans), and the CTSGP-CTAF funds, which are administered by the California Emergency Management Agency (CalEMA). 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-CT AF 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-CT AF Accounts of the Commission. They do not purport to, and do not, present fairly the financial position of the Commission as of June 30, 2014 and 2013 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-CT AF 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, 2014, the Commission recognized revenues related to an allocation of $2,454,941 for the Station Rehabilitation project, $4,200,000 for the Coachella Valley Station Development project, and $355,748 for the Station Security project, for a total of $7,010,689. For the year ended June 30, 2013, the Commission recognized revenues related to allocations of $350,248 for the Station Security project. 5 254 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 (Continued) Funding: Project sponsors may submit applications for funding of eligible transit capital projects to Caltrans or CalEMA, 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-CT AF 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, 2014, the Commission incurred qualifying expenditures of $17,470 for the Station Rehabilitation project, $223,901 for the CCTV Operations Center project, $63,396 for the Coachella Valley Station Development project, $153,536 for the Station Security project, and the effect of a revision of ($69,648) to an estimated expenditure based on a final judgement for the Perris Multimodal project, for a total of $388,655. For the year ended June 30, 2013, the Commission incurred qualifying expenditures of $218,781 for the Station Security project. 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, 2013, the Commission transferred $641, 151 from the Station Rehabilitation project, $731, 112 from the La Sierra Parking Lot project, and $12,838 from the Rail Cars project, for a total of $1,385, 101, to the CCTV Operations Center project as a result of approval from Caltrans in May 2013. 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 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. 6 255 • • • • Proposition 1 B 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, 2014 and 2013, the Account has $9,032,235 and $2,473,018, respectively, included in the Commission's investment with the RCPIF, with an average maturity of 481 days and 514 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, 2014 and 2013, the Commission's investment in the RCPIF was rated Aaa-/bf 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. 7 256 • Supplementary Information • • 257 • • Proposition 1 B Rehabilitation, Safety and Security Project Accounts, Accounts of the Riverside County Transportation Commission Combining Balance Sheet-By Project June 30, 2014 Assets Cash and investments in Riverside County Pooled Investment Fund Interest receivable Total assets 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 PTMISEA Perris Multi modal Station CCTV Operations Coachella Valley Facility Rehabilitation Center Station Development Total $ 71,373 $ 2,441,771 $ 1,343,866 $ 4, 194,981 $ 8,051,991 58 1,061 1,085 1,823 4,027 $ 71,431 $ 2,442,832 $ 1,344,951 ~ 4 196 804 $ 8,056,018 $ -$ 4,300 $ 178,500 $ 58,377 $ 241,177 4,300 178,500 58,377 241, 177 71,431 2,438,532 1, 166,451 4, 138,427 7,814,841 71,431 2,438,532 1,166,451 4,138,427 7,814,841 $ 71,431 $ 2,442,832 $ 1,344,951 $ 4 196 804 $ 8,056,018 8 258 • CTSGP-CTAF Station Securi!}'. Total $ 980,244 $ 9,032,235 597 4,624 $ 980,841 $ 9,036,859 $ -$ 241, 177 -241,177 980,841 8,795,682 980,841 8,795,682 $ 980,841 $ 9,036,859 Proposition 1 B Rehabilitation, Safety and Security Project Accounts, Accounts of the Riverside County Transportation Commission Combining Balance Sheet-By Project June 30, 2013 PTMISEA CTSGP-CTAF Perris Multi modal 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 $ 311,965 $ $ $ $ 1,385,101 $ 1,697,066 $ 775,952 $ 2,473,018 Interest receivable 220 980 1,200 392 1,592 Total assets $ 312,185 $ $ $ $ 1,386,081 $ 1 698 266 $ 776,344 $ 2,474,610 Liabilities and Account Fund Balance Liabilities Accounts payable $ 311,182 $ $ $ $ $ 311,182 $ $ 311,182 Total liabilities 311, 182 311, 182 311, 182 Account Fund Balance Restricted: Rail projects 1,003 1,386,081 1,387,084 776,344 2, 163,428 Total account fund balance 1,003 1,386,081 1,387,084 776,344 2, 163,428 Total liabilities and account fund balance $ 312,185 $ $ $ $ 1,386,081 $ 1 698 266 $ 776,344 $ 2,474,610 • • • • 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, 2014 Perris Multimodal Facility Revenues: State allocations $ -Interest 780 Total revenues 780 Expenditures: Rail (69,648) Excess of revenues over (under) expenditures 70,428 Account fund balance, beginning of year 1,003 Account fund balance, end of year $ 71,431 Station Rehabilitation $ 2,454,941 1,061 2,456,002 17,470 2,438,532 -$ 2,438,532 PTMISEA CCTV Operations $ $ 10 260 Center -4,271 4,271 223,901 (219,630) 1,386,081 1,166,451 • CTSGP-CTAF Coachella Valley Station Station Development Total Security Total $ 4,200,000 $ 6,654,941 $ 355,748 $ 7,010,689 1,823 7,935 2,285 10,220 4,201,823 6,662,876 358,033 7,020,909 63,396 235,119 153,536 388,655 4,138,427 6,427,757 204,497 6,632,254 -1,387,084 776,344 2,163,428 $ 4,138,427 $ 7,8j_4,841 $ 980,841 $ 8,795,682 Proposition 1 B 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, 2013 PTMISEA CTSGP-CTAF Perris CCTV Multimodal Station La Sierra Rail Operations Station Facility Rehabilitation Parking Lot Cars Center Total Security Total Revenues: State allocations $ $ $ $ $ $ $ 350,248 $ 350,248 Interest 1,003 1,613 1,840 980 5,436 1,770 7,206 Total revenues 1,003 1,613 1,840 980 5,436 352,018 357,454 Expenditures: Rail 218,781 218,781 Excess of revenues over (under) expenditures 1,003 1,613 1,840 980 5,436 133,237 138,673 Other financing sources (uses): Transfers in 1,385, 101 1,385,101 1,385, 101 Transfers out (641, 151) (731,112) (12,838) (1,385,101) -{1,385,101) Total other financing sources (uses) (641,151) (731,112) (12,838) 1,385,101 Net change in account fund balance 1,003 (639,538) (729,272) (12,838) 1,386,081 5,436 133,237 138,673 Account fund balance, beginning of year 639,538 729,272 12,838 1,381,648 643,107 2,024,755 Account fund balance, end of year $_ 1,00]_ $ __ $ ~$-$ ____1,_3 86 '()fil__ $ -1d87,0M_ __ $_ 776d_41 _1_2,163,428 • 11. 261 • McGladrey LLP • I McGladrey • • 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, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of the Proposition 1 B Rehabilitation, Safety and Security Project Accounts (the Accounts), accounts of the Riverside Transportation Commission (the Commission), as of and for the year ended June 30, 2014, and the related notes to the financial statements, and have issued our report thereon dated October 31, 2014. Internal Control Over Financial Reporting In planning and performing our audit of the financial statements, we considered the Accounts' internal control over financial reporting (internal control) to determine the audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the Accounts' internal control. Accordingly, we do not express an opinion on the effectiveness of the Accounts' internal control. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the Accounts' financial statements will not be prevented, or detected and corrected, on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified. Compliance and Other Matters As part of obtaining reasonable assurance about whether the Accounts' financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. 12 Purpose of this Report The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the Accounts' internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the Accounts' internal control and compliance. Accordingly, this communication is not suitable for any other purpose. Irvine, CA October 31, 2014 13 264 • • • • Riverside County Transportation Commission Compliance Report June 30, 2014 I 265 Assurance •Tax• Consulting • • • • • 266 • • • Contents Schedule of Expenditures of Federal Awards Notes to Schedule of Expenditures of Federal Awards 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 Report on Compliance for the Major Federal Program; Report on Internal Control Over Compliance; and Report on Schedule of Expenditures of Federal Awards Required by OMB Circular A-133 Schedule of Findings and Questioned Costs Summary Schedule of Prior Year Audit Findings 267 2 3-4 5-6 7-9 10 ------------------- • • • 268 • • • Riverside County Transportation Commission Schedule of Expenditures of Federal Awards Year Ended June 30, 2014 Federal Granter/Pass-Through Granter/ Program or Cluster Title U.S. Department of Transportation: Highway Planning and Construction Program: Pass-through State Department of Transportation: 60/215 East Junction State Route 91 Utilities Relocation SR91/SR71 Junction Regional Rideshare RT79 Realign Study and Realignment 1215 at Blaine Street ARRA -74/215 Interchange Pass-through Orange County Transportation Authority: Regional Ridematching Total Highway Planning and Construction Program Federal Transit, Formula Grant: Urbanized Area Formula: Direct Program, Perris Valley Line Total Federal Transit, Formula Grant Public Transportation Research: Pass-through State Department of Transportation: Rising Stars in Transit Total Public Transportation Research Job Access and Reverse Commute Program (JARC): Pass-through Sun Line Transit Agency: JARC Grant 5316 JARC Grant Total Job Access and Reverse Commute Program New Freedom Program: Pass-through Riverside Transit Agency: New Freedom 5317 Total New Freedom Program Total expenditures of federal awards * Denotes major program See Notes to Schedule of Expenditures of Federal Awards. Catalog of Federal Domestic Assistance Number 20.205 20.205 20.205 20.205 20.205 20.205 ARRA-20.205 20.205 20.205 20.205 20.507* 20.514 20.516 20.516 20.521 269 Pass-Through Entity/ Identifying Number 07-31-082-01 08-31-002-02 08-31-033-02 08-41-042-00 08-72-112-03 13-31-073-00 10-31-025-03 11-41-139-00/C-1-2877 14-41-154-00/C-3-1863 MOU RS0506/06-41-082-08 CA-90-Y827-00/CA-95-X 135-00 CA-03-0812-00/CA-95-X202-00 MOU M-005-13113-25-106-00 14-26-060-00 MOU 11-26-072-00 14-26-059-00 Federal Expenditures $ 300,045 1,340,384 2,686,062 168,162 (43,195) 1,094,176 121,985 25,672 18,844 12, 167 5,724,302 29,761,237 29,761,237 28,442 28,442 3,194 18,372 21,566 10,367 10,367 $ 35,545,914 • • • 270 • • • Riverside County Transportation Commission Notes to Schedule of Expenditures of Federal Awards YearEndedJuneJ0,2014 Note 1. Basis of Presentation The accompanying schedule of expenditures of federal awards (the Schedule) includes the activity of all federal award programs of the Riverside County Transportation Commission (the Commission) for the year ended June 30, 2014. The Schedule includes federal awards received directly from federal agencies, as well as federal awards passed through other agencies. The Commission's reporting entity is defined in Note 1 to the Commission's basic financial statements. Because the Schedule presents only a selected portion of the operations of the Commission, it is not intended to, and does not, present the financial position of the Commission. The information in this Schedule is presented in accordance with the requirements of 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. Note 2. Summary of Significant Accounting Policies The accompanying Schedule is presented on the modified-accrual basis of accounting. Expenditures are recognized following the cost principles contained in Office of Management and Budget (OMB) Circular A-87, Cost Principles for State, Local and Indian Tribal Governments, wherein certain types of expenditures are not allowable or are limited as to reimbursement. 2 271 • • • 272 • • • IMcGladrey Board of Commissioners 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 Riverside County Transportation Commission Riverside, CA McGladrey llP We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States, the financial statements of the governmental activities, 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, 2014, and the related notes to the financial statements, which collectively comprise the Commission's basic financial statements, and have issued our report thereon dated October 31, 2014. Internal Control over Financial Reporting In planning and performing our audit of the financial statements, we considered the Commission's internal control over financial reporting (internal control) to determine the audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the Commission's internal control. Accordingly, we do not express an opinion on the effectiveness of the Commission's internal control. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity's financial statements will not be prevented, or detected and corrected, on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies. Given these limitations, during our audit, we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified. Compliance and Other Matters As part of obtaining reasonable assurance about whether the Commission's financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards . 3 Purpose of this Report The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the entity's internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the Commission's internal control and compliance. Accordingly, this communication is not suitable for any other purpose. &~L?,P Irvine, CA October 31, 2014 4 274 • • • • • • McGladrey lLP IMcGladrey Report on Compliance for the Major Federal Program; Report on Internal Control Over Compliance; and Report on Schedule of Expenditures of Federal Awards Required by OMB Circular A-133 Board of Commissioners Riverside County Transportation Commission Riverside, CA Report on Compliance for the Major Federal Program We have audited the Riverside County Transportation Commission's (the Commission) compliance with the types of compliance requirements described in the 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, 2014. 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. Management's Responsibility Management is responsible for compliance with the requirements of laws, regulations, contracts and grants applicable to its federal program. Auditor's Responsibility Our responsibility is to express an opinion on compliance for the Commission's major federal program based on our audit of the types of compliance requirements referred to above. 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 its 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 on compliance for its major federal program. However, our audit does not provide a legal determination of the Commission's compliance. Opinion on the Major Federal Program In our opinion, the Commission complied, in all material respects, with the. types of compliance requirements referred to above that could have a direct and material effect on its major federal program for the year ended June 30, 2014. Other Matters The results of our auditing procedures disclosed an instance of noncompliance, which is required to be reported in accordance with OMB Circular A-133 and is described in the accompanying Schedule of Findings and Questioned Costs as item 2014-1. Our opinion on its major federal program is not modified with respect to this matter. The Commission's response to the noncompliance finding identified in our audit is described in the accompanying Schedule of Findings and Questioned Costs. The Commission's response was not subjected to the auditing procedures applied in the audit of compliance and, accordingly, we express no opinion on the response. 5 Report on Internal Control Over Compliance Management of the Commission is responsible for establishing and maintaining effective internal control over compliance with the types of compliance requirements referred to above. In planning and performing our audit of compliance, we considered the Commission's internal control over compliance with the types of requirements that could have a direct and material effect on its major federal program to determine the auditing procedures that are appropriate in the circumstances for the purpose of expressing an opinion on compliance for its major federal program 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. A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis. A material weakness in internal control. over compliance is a deficiency, or combination of deficiencies, in internal control over compliance, such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of a federal program will not be prevented, or detected and corrected, on a timely basis. A significant deficiency in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance with a type of compliance requirement of a federal program that is less severe than a material weakness in internal control over compliance, yet important enough to merit attention by those charged with governance. 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 material weaknesses or significant deficiencies. We did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses. However, material weakhesses may exist that have not been identified. The purpose of this report on internal control over compliance is solely to describe the scope of our testing of internal control over compliance and the results of that testing based on the requirements of OMB Circular A-133. Accordingly, this report is not suitable for any other purpose. Report on Schedule of Expenditures of Federal Awards Required by OMB Circular A-133 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, 2014, and the related notes to the financial statements, which collectively comprise the Commission's basic financial statements. We issued our report thereon dated October 31, 2014, which contained unmodified opinions on those financial statements. Our audit was conducted for the purpose of forming opinions on the financial statements, which collectively comprise the basic financial statements. The accompanying schedule of expenditures of federal awards is presented for purposes of additional analysis as required by OMB Circular A-133 and is not a required part of the basic financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. The information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial stateme'nts themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the schedule of expenditures of federal awards is fairly stated in all material respects in relation to the basic financial statements as a whole. Irvine, CA October 31, 2014 6 276 • • • • • • Riverside County Transportation Commission Schedule of Findings and Questioned Costs Year Ended June 30, 2014 I. Summary of Auditor's Results Financial Statements Type of Auditor's Report Issued: Unmodified Internal control over financial reporting: • Material weakness(es) identified? • Significant deficiency(ies) identified that are not considered to be material weaknesses? Noncompliance material to financial statements noted? Federal Awards Internal control over major federal programs: • Material weakness(es) identified? • Significant deficiency(ies) identified that are not considered to be material weaknesses? --- Yes x No Yes x None Reported Yes x No Yes X No Yes X None Reported Type of auditor's report issued on compliance for major federal programs: Unmodified • Any audit findings disclosed that are required to be reported in accordance with Section 51 O(a) of OMB Circular A-133? Identification of major federal programs: X Yes No CFDA Number(s) Name of Federal Program or Cluster 20.507 Federal Transit, Formula Grant Dollar threshold used to distinguish between Type A and Type B programs: $1,066,377 Auditee qualified as low-risk auditee? 7 277 X Yes No Riverside County Transportation Commission Schedule of Findings and Questioned Costs (Continued) Year Ended June 30, 2014 II. Financial Statement Findings A. Internal Control Matters None reported. B. Compliance Findings None reported. Ill. Findings and Questioned Costs for Federal Awards A. Internal Control None reported. B. Compliance Findings Finding 2014-1 CFDA: 20.507 Federal Award: Federal Transit Formula Grant Federal Agency: Department of Transportation Criteria: Laborers that work on construction contracts in excess of $2,000 that are financed by federal assistance funds must be paid wages not less than those established for the locality of the project (prevailing wage rates) by the Department of Labor. Non-federal entities include i'l requirement for the contractor to submit on a weekly basis, for each week in which any contract work is performed, a copy of the payroll and a statement of compliance. Condition: The Commission has been unable to obtain certified payroll reports on a timely basis from subcontractors that perform contract work on the construction of the Perris Valley Line. This project is financed with federal assistance funds, and there are numerous certified payrolls that were missing as of June 30, 2014. These missing certified payroll reports constitute noncompliance with the Davis-Bacon Act requirement applicable for this federal program. Context: Numerous payroll reports from subcontractors have not been received since February 2014. Effect: The Commission is noncompliant with the Davis-Bacon Act regarding obtaining and reviewing contractor reports for federal prevailing wage requirements. Cause: Various subcontractors have not submitted the weekly payroll reports as required in accordance with the terms of the construction contract. Recommendations: We recommend that the Commission investigate which legal remedies are available under the terms of the contract to get the subcontractors to comply with the terms of the construction. 8 278 • • • • • • Riverside County Transportation Commission Schedule of Findings and Questioned Costs (Continued) Year Ended June 30, 2014 Views of responsible officials and planned corrective actions: Management concurs with the finding. The Commission's construction management consultant for each project checks monthly for required certified payroll documents and determines if the contractor and subcontractors are in compliance with federal prevailing wage requirements. Each contract specifies the consequences of noncompliance with these requirements, which the Commission exercises. In accordance with the construction contract for the Perris Valley Line, the Commission has issued a formal demand for the missing documentation that still has not been submitted, to be provided within 10 days or deductions will be taken on progress payments. The deductions are not intended to be permanent and can be released as soon as all documents have been submitted. Further, the maximum deduction is limited to $10,000 per month. The Commission will continue to make its best effort to obtain the required documentation from the contractor and subcontractors on a timely basis in order to determine compliance with the federal prevailing wage requirements . 9 279 Riverside County Transportation Commission Summary Schedule of Prior Year Audit Findings Year Ended June 30, 2014 There were no audit findings reported for the year ended June 30, 2013. 10 280 • • • • • • IMcGladrey Board of Commissioners Independent Auditor's Report on Compliance With Aspects of Contractual Agreements Riverside County Transportation Commission Riverside, CA ATTACHMENT 6 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 Riverside County Transportation Commission (the Commission) as of and for the year ended June 30, 2014, and the related notes to the financial statements, which collectively comprise the Commission's basic financial statements, and have issued our report dated October 31, 2014. In connection with our audit, nothing came to our attention that caused us to believe that the Commission failed to comply with the terms, covenants, provisions or conditions of Sections 6.2(g) and 6.2(1) contained in the Reimbursement Agreement, dated 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, related 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. Accordingly, had we performed additional procedures, other matters may have come to our attention regarding the Commission's noncompliance with the above-referenced terms, covenants, provisions or conditions of the Reimbursement Agreement, insofar as they relate to accounting matters. This report is intended solely for the information and use of the Boards of Commissioners and management of the Commission and 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 October 31, 2014 • I McGladrey -Assurance• Tax• Consulting 282 • • • 283 • • • IMcGladrey November 5, 2014 To the Audit Ad Hoc Committee Riverside County Transportation Commission Riverside, CA McGladrey LLP We are pleased to present this report related to our audit of the basic financial statements and compliance of the Riverside County Transportation Commission (the Commission) for the year ended June 30, 2014. This report summarizes certain matters required by professional standards to be communicated to you in your oversight responsibility for the Commission's financial 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 about this report. We appreciate the opportunity to continue to be of service to the Commission . Contents Required Communications Summary of Significant Accounting Estimates Exhibit-Certain Written Communication Between Management and Our Firm Representation Letter 285 1-2 3-5 • • • • • • Required Communications Generally accepted auditing standards (AU-C 260, The Auditor's Communication With Those Charged With Governance) require the auditor to promote effective two-way communication between the auditor and those charged with governance. Consistent with this requirement, the following summarizes our responsibilities regarding the basic financial statement audit as well as observations arising from our audit that are significant and relevant to your responsibility to oversee the financial reporting process: Area Our Responsibilities With Regard to the Financial Statement Audit Overview of the Planned Scope and Timing of the Financial Statement Audit Accounting Policies and Practices Comments Our responsibilities under auditing standards generally accepted in the United States of America and Government Auditing Standards, issued by the Comptroller General of the United States, and the provisions of the Single Audit Act, Office of the Management and Budget (OMB) Circular A-133 and OMB's Compliance Supplement, have been described to you in our arrangement letter dated July 28, 2014. We have issued a separate communication regarding the planned scope and timing of our audit and have discussed with you our identification of, and planned audit response to, significant risks of material misstatement. Preferability of Accounting Policies and Practices Under generally accepted accounting principles, in certain circumstances, management may select among alternative accounting practices. In our view, in such circumstances, management has selected the preferable accounting practice. Adoption of, or Change in, Accounting Policies Management has the ultimate responsibility for the appropriateness of the accounting policies used by the Commission. Following is a description of significant accounting policies that were changed during the year: Management changed its estimate for the amount of noncapitalizable costs for the SR-91 corridor improvement project (SR-91 CIP}, as described in the Summary of Significant Accounting Estimates. 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. Management's 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 Significant Accounting Estimates . 286 Area Audit Adjustments Uncorrected Misstatements Disagreements With Management Consultations With Other Accountants Significant Issues Discussed With Management Significant Difficulties Encountered in Performing the Audit Certain Written Communication Between Management and Our Firm Comments There were no audit adjustments made to the original trial balance presented to us to begin our audit, except for one client-initiated adjustment to account for its change in estimate of noncapitalizable costs for the SR-91 CIP. We are not aware of any uncorrected misstatements, other than misstatements that are clearly trivial. 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 basic financial statements. We are not aware of any consultations management had with other accountants about accounting or auditing matters. Following is a description of a significant issue arising from the audit that was discussed with management: The accounting estimate related to capital costs for the SR-91 corridor • improvement project, as described in the Summary of Significant • Accounting Estimates. We did not encounter any significant difficulties in dealing with management during the audit. A copy of a certain written communication between our Firm and the management of the Commission, which is the representation letter provided to us by management, is attached as the Exhibit. 2 287 • • • • Riverside County Transportation Commission Summary of Significant Accounting Estimates Year Ended June 30, 2014 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 determine and record these accounting estimates. The following describes the significant accounting estimates reflected in the Commission's June 30, 2014 basic financial statements: Estimate Useful Lives of Long-Lived Assets Pension Obligations and Post-Employment Benefits Other Than Pension (OPEB) Management's Accounting Policy Estimation Process The estimated useful Management reviews lives of assets generally for changes in the have the following useful lives of long-lived ranges: rail stations, assets by evaluating 10 to 30 years; office prominent events or furniture and equipment, changes in three to five years; and circumstances affecting vehicles, five years. capital assets to These assets are determine whether depreciated using the impairment of a capital straight-line method. asset has occurred. A Land and rail operating capital asset is easements are not considered impaired if depreciated and both the decline in the construction in process service utility of the is not depreciated until capital asset is large in ready for intended use. magnitude and the event or change in circumstances is outside the normal life cycle of the capital asset. A pension asset is For OPES assets and recorded if contributions liabilities, the exceed the annual Commission utilizes an required contribution actuarial consulting firm (ARC). A pension or to perform an evaluation OPES liability is using the entry age recorded if the actuarial cost method. contributions are less Management reviewed than the ARC. and approved the actuarial assumptions and calculations used to determine the post- employment benefits costs . 3 288 Basis for Our Conclusions on Reasonableness of Estimate We tested the reasonableness of information underlying management's estimate. Based on our procedures, we concluded that the assigned useful lives of capital assets are reasonable. We tested the reasonableness of the information underlying the actuarial evaluations, which is the basis for the ARC in determining the asset or liability. Based on our procedures, we concluded that the pension and OPES asset and/or liability are properly reported. Estimate Pension Obligations and Post-Employment Benefits Other Than Pension {OPEB) {Continued) Capitalized Project Costs For SR-91 CIP and Interstate 15 Corridor Improvement Project (1-15 CIP) Accounting Policy Capital project costs that will be owned or operated by the Commission are capitalized at the entity- wide financial statements; while project costs, which are not expected to remain assets of the Commission, are expensed as incurred. Management's Estimation Process For pension obligations, management utilizes CalPERS actuaries for its cost-sharing multiple- employer plan, which 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. Management analyzes project costs to determine the portion that is related to the toll lanes, which ultimately will be reported as intangible assets under the service agreement with Caltrans. All other project costs are expensed as incurred since they will not be owned or operated by the Commission. The allocation for project costs, which are capitalizable, is reviewed by management to reflect the assets that are expected to be owned or operated by the Commission and the forecasted funding sources for the tolled express lanes projects. This accounting estimate will be refined in future periods if new information becomes available. 4 289 Basis for Our Conclusions on Reasonableness of Estimate We have tested the propriety of data used by management in making its reasonable estimate. We understand that new information during the current fiscal period resulted in revising previous amounts and expensing approximately $100 million of previously capitalized costs in the June 30, 2014 government-wide financial statements. --1 • • • • • • Estimate Capitalized Project Costs For SR-91 GIP and Interstate 15 Corridor Improvement Project (1-15 GIP) (Continued) Accounting Policy Management's Estimation Process All costs related to the 1-15 CIP are considered capitalizable. 5 290 Basis for Our Conclusions on Reasonableness of Estimate • Exhibit-Certain Written Communication Between Management and Our Firm • • 291 • • Riverside County Transporlalion Commission October 31, 2014 McGladrey LLP 18401 Von Karman Ave., 5th Floor Irvine, CA 92612 4080 Lemon Street, 3rd Floor • Riverside, CA Moiling Address: P. 0. Box 12008 • Riverside, CA 92502-2208 (951) 787-7141 •Fox (951) 787-7920 • www.rctc.org This representation letter is provided in connection with your audit of the basic financial statements of the Riverside County Transportation Commission (the Commission) as of and for the year ended June 30, 2014, and the related notes to the financial statements; 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, 2014, and the related notes to the financial statements; and the financial statements of the Proposition lB Rehabilitation and Security Project Accounts (Prop 18), accounts of the Commission, as of and for the year ended J1,1ne 30, 2014, and the related notes to the financial statements, for the purpose of expressing opinions on whether the financial statements are presented fairly, in all material respects, in accordance with accounting principles generally accepted in the United States of America (U.S. GAAP). We confirm, to the best of our knowledge and belief, that as of October 31, 2014: Financial Statements 1. We have fulfilled our responsibilities, as set out in the terms of the audit arrangement letter dated July 28, 2014, for the preparation and fair presentation of the financial statements referred to above in accordance with U.S. GAAP. 2. We acknowledge our responsibility for the design, implementation and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. 3. We acknowledge our responsibility for the design, implementation and maintenance of internal control to prevent and detect fraud. 4. Significant assumptions used by us in making accounting estimates, including those measured at fair value, are reasonable and 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. 5. Related-party relationships and transactions have been appropriately accounted for and disclosed in accordance with the requirements of U.S. GAAP. 6. All events subsequent to the date of the financial statements, and for which U.S. GAAP requires adjustment or disclosure, have been adjusted or disclosed. 7. The effects of all known actual or possible litigation and claims have been accounted for and disclosed in accordance with U.S. GAAP. 8. Project costs that have been incurred for the tolled express lanes projects, consisting of the SR-91 corridor improvement project and the Interstate 15 (1-15) corridor improvement project, and are expected to remain the Commission's assets, will be capitalized as intangible assets that will be amortized over the life of the service concession arrangement with Caltrans. These capitalizable costs have been accumulated in the capital assets as land and land improvements and construction in progress . The costs of the tolled express lanes projects that are not capitalized are expensed as incurred based on management's estimation which is generally based upon the allocation of Measure A and other funding sources, including toll-supported debt. As of June 30, 2014, the estimated project costs incurred but not capitalized related to the SR-91 corridor improvement project 292 McGl~~arey ll.P OctQber 31, 2-014 Page2 is approximately 85 percent of right of way and 60 percent of engineering and construction costs, or approximately $80,300,000 and $165,100,000, respectively. All costs related to the 1-15 corridor improvement project are considered capitalizable. 9. During the year ended June 30, 2014, management became more aware of the details s\moundlng the SR-91 corridor improvement project as it has evolved over time. The Commission had also issued additional debt as a result oHhe project's financing plan becoming more defined, and management was able to refine its estimate of what costs would remain on the Commission's books. Management believes that the provisions made to estimate the noncapitalizable costs for the SR-91 corridor Improvement project are reasonable and reflect a change in accountlngestltnttte dt:trll'lg the'fi$cal period. As a result of the Commis$lon's new infurmation and better insight for the SR-91 corridor iniprevement i:>roJect: the Commlsston e)(pensed apProximately $245,400,000 r>f project costs, of which approximately $100,800,000 had been capitsll2ed in previous periods and; as a result ofthe change in estimate, ls included in highWay expense<lurfng the year ended June 101 2(}14. 10. We agree with the findings of specialists at Fieldman, Rolapp & Associates 11'1 evaJuatlnt_rthe m?rk-tb-market fair value of the forward starting interest rate swap agreements and have adequately <:onsldetea the quallfleatlons of tfn: ~eciallsts in determining the amounts and disclosures used in the financial statements and uniferlyltig e«:oiinting records. We did not give instructions, or cause any instructions to be given, to the specialists with respect to the values or amounts derived in an attempt to bias their work, and we are not otherwise aware of any matters t11ial ha'1e an impact on the independence or objectivity of the specialists. • ll. There have been. no material modifications to our joint powers agreement with the SCRRA that would materially impact the • Commission's participation. 12. All designated employees have filed the required Statement of Economic Interest as outlined in the Commission's conflict of interest code. 13. Amounts restricted for transit purposes for LTF total $115,877,309 as of June 30, 2014. Amounts restricted for transportation purposes for STAF allocations available for programming total $45,330,975 and restricted for unclaimed allocations total $10,17i;991. All allocated amounts have been approved by the Commission. 14. In May 2006, the Commission entered into a cooperative agreement, Riverside Orange Corridor Authority, with the Orange C:ounty Transportation Authority (OCTA) and the Transportation Corridor Agehcies to jointly e)cercise the common powers of the parties to manage geotechnical studies regarding the Riverside Orange Corridor. Tfie Commission is the recipient and administering entity of federal and state funds as may be necessary to accomplishthis work, and the three agencies will share in meeting the local agency matching requirements. As of June 30, 2014, the Commission was not required to make any contributions. 15. 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 sales tax. At June 30, 2014, there were no commercial paper notes outstanding. As a requirement for the issuance of the commercial paper notes, 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, as credit and liquidity support for the commercial paper notes through October 2014. The Commission terminated the Bank of Tokyo-Mitshubishi UFJ, Ltd. direct draw letter of credit and reimbursement agreement in July 2013. There were no unreimbursed draws by the Commission on the Union Bank, N.A. letter of credit during the year ended June 30, 2014, nor were there any amounts outstanding under the • letter of credit agreement at June 30, 2014. 293 • • • McGladrey LLP October 31, 2014 Page 3 16. 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 may be incorporated into the Commission's budgetary process a.s revisions to the original adopted budget. 17. We have no knowledge of any uncorrected misstatements in the financial statements. Information Provided 18. We have provided you with: a. Access to all information of Which w~ are aware that is relevant to the preparation and fair presentation of the financial statements such as records, documentation and other matters. b. Additional information that you have requested from us for the purpose of the audit. c. Unrestricted access to persons within the entity from whom you determined it necessary to obtain audit evidence. d. Minutes of the meetings of the Board of Commissioners (Board) and committees of the Board, or summaries of actions of recent meetings for which minutes ti1:ive not yet been prepared. 19. All transactions have been recorded in the accounting records and are reflected in the financial statements . 20. We have disclosed to you the results of our assessment of risk that the financial statements may be materially misstated as a result of fraud.· 21. We have no knowledge of allegations of fraud or suspected fraud affecting the entity's financial statements involving: 22. 23. 24. 25. 26. 27. a. Management. b. Employees who have significant roles in internal control. c. Others where the fraud could have a material effect on the financial statements. We have no knowledge of any allegations of fraud or suspected fraud affecting the entity's financial. statements received In communications from employees, former employees, analysts, regulators or others. We have no knowledge of noncc;>mpliance or suspected noncompliance with laws or regulations whose effects should be considered when prep?Jring financial statements. We are not aware of any pending or threatened litigation or claims whose effects should be considered when preparing the financial statements. We have disclosed to you the identity of the entity's related parties and all the related-party relationships and transactions of which we are aware. 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 . There have been no communications from regulatory agencies concerning noncompliance with, or deficiencies in, financial reporting practices. 294 McGladrey LLP October 31, 2014 Page 4 • Supplementary Information 28. With respect to other 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 U.S. GAAP. c. The methods of measurement or presentation have not changed from those used in the prior period. 29. With respect to management's discussion and analysis, budgetary comparison schedules, and funding progress for postretirement health care presented as required by U.S. GMP to supplement ftte basic financial statements: a. We acknowledge our responsibility for the presentation of such tectUlred supplementary information. b. We believe such required supplementary information is measured anti presented In accordance with guidelines prescribed by U.S. GAAP. c. The methods of measurement or presentation have not changed fr.om those used in the prior period. 30. During the course of your audit, you may have accumulated rfteort:ls containirigdata 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. Compliance Considerations In connection with your audit, conducted in accordance with Government Auditing Standards, we confirm that management: 31. Is responsible for compliance with the laws, regulations, and provisions of contracts and grant agreements applicable to the Commission. 32. Has identified and disclosed to the auditor all instances that have occorred or are likely to have occurred, of fraud and noncompliance with provisions of laws and regulations that have a material effect on the financial statements or other financial data significant to the audit objectives, and any ottler instances that warrant the attention of those charged with governance. 33. Has identified and disclosed to the auditor all instances that have occurred or are likely to have occurred, of noncompliance with provisions of contracts and grant agreements that have a material effect on the determination of financial statement amounts or other financial data significant to the audit objectives. 34. Has identified and disclosed to the auditor all instances that have occurred or are likely to have occurred of abuse that could be quantitatively or qualitatively material to the financial statements or other financial data significant to the audit objectives. 35. Has a process to track the status of audit findings and recommendations. 36. Has provided views on the auditor's reported findings, conclusions, and recommendations, as well as management's planned corrective actions, for the report. In connection with your audit of federal awards conducted in accordance with Office of Management and Budget (OMB) Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations, we confirm: 295 • • • • McGladrey LLP October 31, 2014 Page 5 37. We are responsible for complying, and have complied, with the requirements of OMB Circular A·133. 38. We are responsible for understanding and complying with the requirements of laws, regulations, and the provisions of contracts and grant agreements related to each of our federal programs. 39. 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 ls managing federal awards in compliance with Jaws, regulations, and the provisions of contracts or grant agreements that could have a material effect on our federal programs. 40. We have prepared the schedule of expenditures of federal awards in accordance with OMB Circular A-133 and have included expenditures made during the period being audited for all awards provided by federal agencies In the form of grants, federal cost-reimbursement contracts, loans, loan guarantees, property (including donated surplus property}, cooperative agreements, interest subsidies, insurance, food commodities, direct appropriations, and other assistance. 41. We have identified and disclosed to the auditor the requirements of laws, regulations, and the provisions of contn;1cts and grant agreements that are considered to have a direct and material effect on the major program. 42. We have made available all contracts and grant agreements (including amendments, if any) and any other correspondence relevant to federal programs and related activities that have taken place with federal agencies or pass-through entities . 43. We have identified and disclosed to the auditor all amounts questioned and all known noncompliance with the direct and material compliance requirements of federal awards. 44. We believe that the Commission has complied with the direct and material compliance requirements (except for noncompliance it has disclosed to the auditor). 45. We have made available all documentation related to compliance with the direct and material Gompliance requirements, including information related to federal program financial reports and claims for advances and reimbursements. 46. There are no instance.s in which the Commission has its own interpretations of any compliance requirements that are subject to varying Interpretations. 47. There have been no communications from grantors and pass-through entities concerning possible noncompliance with the direct and material compliance requirements, including communications received from the end of the period covered by the compliance audit to the date of the auditor's report. 48. 49. so. 51. 52. We are responsible for taking corrective action on audit findings of the compliance audit. We have disclosed the nature of any subsequent events that provide additional evidence with respect to conditions that existed at the end of the reporting period that affect noncompliance during the reporting period. We have disclosed all known noncompliance with direct and material compliance requirements occurring subsequent to the period covered by the auditor's report or stating that there were no such known instances. There are no changes in internal control over compliance or other factors that might significantly affect internal control that have occurred subsequent to the date as of which compliance is audited . 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. 296 McGladrey LLP October 31, 2014 Page 6 • 53. The copies of federal program financial reports provided to the auditor are true copies of the reports submitted, or electronically transmitted, to the federal agency or pass-through entity, as applicable. 54. We have no subrecipients of federal awards. 55. We have charged costs to federal awal'ds in accordance with applicable cost principles. 56. We have accurately completed the appropriate sections of the data collection form. We further acknowledge our responsibility for the complete, accurate and timely filing of the data collection form with the Federal Audit Clearinghouse. 57. We have disclosed all contracts or other agreements with service organizations. 58. We have disclosed to the auditor all oommunicatiOl'ls from service organizations relating to noncompliance at those organizations. RIVERSIDE COUNTY TRANSP<:>RTATION COMMISSION Theresia Trevino, Chief Financial Officer 297 • • • • • IMcGladrey Board of Commissioners Independent Accountant's Report on Applying Agreed-Upon Procedures Riverside County Transportation Commission Riverside, CA ATTACHMENT 8 McGladrey LLP 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, 2014. 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 X/11-B of the California Constitution), were performed solely to assist the Commission in meeting the requirements of Section 1.5 of Article Xlll-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 are 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. 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 Xlll-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. ,4/~L?-,P Irvine, CA October 31, 2014 2 299 • • • • Riverside County Transportation Commission Appropriations Limit Calculation Year Ended June 30, 2014 A. Last year's limit B. Adjustment factors: 1. Population change 2. Per capita change Total adjustments [(B.1 x 8.2)-1.0] C. Annual adjustment D. Other adjustments: 1. Lost responsibility (-) 2. Transfer to private(-) 3. Transfer to fees(-) 4. Assumed responsibility(+) Subtotal • E. Total adjustments F. This year's limit • 3 300 $ $ Amount 348,861,382 1.0101000 1.0512000 0.0618171 21,565,606 21,565,606 370,426,988 Source State Finance State Finance (BxA) (C+D) (A+E) • • • I McGladrey Board of Commissioners Independent Accountant's Report on Applying Agreed-Upon Procedures Riverside County Transportation Commission and Board of Directors, Inland Transportation Services Riverside, CA ATTACHMENT 9 McGlad~y LLP We have performed the procedures enumerated below, which were agreed to by the Riverside County Transportation Commission (the Commission) and Inland Transportation Services (Contractor) (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, 2014. The Commission and the ITS are responsible for the administration and operations of the Program. 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 for the year ended June 30, 2014 and judgmentally selected a sample of 10 items for 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 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 from ITS that list recorded disbursements made to recipients by ITS for the year ended June 30, 2014 and judgmentally selected a sample of 10 items for testing (see Exhibit 2). Our selected procedures 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 and observed that it was properly completed and approved. No exceptions were noted. b. We obtained the Employee Enrollment Form from ITS indicating the employee is registered with ITS as a participant and observed that it was properly completed and approved. No exceptions were noted. c. We obtained the employee claim form, observed the claim form was approved and compared the claim amount to the ITS disbursement listing, without exception. d. We summed the number of days the employee participated in each rideshare mode, obtained the incentive earned for each rideshare mode and recalculated the incentive and compared it to the claim form without exception. e. We compared the daily amount of reimbursement per mode of transportation to the amount approved in Resolution No. 03-025 without exception. f. We compared the recorded disbursement amount per the ITS Incentive Payment Report to the employer transmittal letter received by ITS without exception. 3. We compared ITS' total gift card inventory balance from gift card inventory schedules provided by ITS as of June 30, 2014 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 $20,365 and $27,386, respectively; (b} Vons and Stater Bros. gift cards under the SANBAG Option Rideshare Program, noting an inventory balance of $13,985 and $28,361, respectively; and (c) Amazon gift cards under the Coachella Valley Association of Governments (CVAG), noting an inventory balance of $1,500. No exceptions were noted. The gift card inventory balance per the inventory schedules as of June 30, 2014 is $99,217. 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 October 31, 2014 302 • • • • • • Riverside County Transportation Commission and Inland Transportation Services (Contractor) Schedule of Selected Purchases of Gift Cards by the Contractor Fiscal Year Ended June 30, 2014 Project Vendor Voucher Date RCTC Advantage Stater Bros. 10/1/2013 RCTC Advantage Stater Bros. 5/1/2014 SANBAG Option Stater Bros. 7/15/2013 SANBAG Option Stater Bros. 3/12/2014 SANBAG Option Stater Bros. 11/21/2013 SANBAG Option Tango Card, Inc. 9/30/2013 RCTC Advantage Vons 7/15/2013 RCTC Advantage Vons 11 /21/2013 SANBAG Option Vons 5/1/2014 CVAG Grant Vons 9/30/2013 303 Exhibit 1 Amount Check# $ 10,000 61100 14,000 63551 20,000 60063 5,000 62876 25,000 61576 3,000 61101 5,000 60067 20,000 61582 11,000 63558 5,000 61107 Riverside County Transportation Commission and Inland Transportation Services (Contractor) Schedule of Selected Employee Incentive Payments Made by the Contractor Fiscal Year Ended June 30, 2014 Employee Commute Initials Employer Name Incentive Type Mode M.R. iHerb Stater Bros. Card Carpool D.W. LLUMC Stater Bros. Card Carpool E.C. Riverside Medical Clinic Stater Bros. Card Carpool C.J. Stater Bros. Stater Bros. Card Carpool T.B. City of Riverside My Choice-Vons Carpool L.N. County of San Bernardino My Choice-Vons Carpool M.P. General Atomics Aeronautical Stater Bros. Card Carpool O.G. Redlands Community Hospital Stater Bros. Card Carpool 0.A. Williams Furnace Company Stater Bros. Card Carpool J.R. Sunline Transit Agency My Choice--Vons Carpool 304 • Exhibit 2 Disbursement Date Amount 7/25/2013 $ 55 3/10/2014 65 7/15/2013 130 4/7/2014 100 10/21/2013 70 6/18/2014 105 8/14/2013 105 12/16/2013 80 5/26/2014 130 5/8/2014 75 • • Riverside County Transportation Commission October 31, 2014 Board of Commissioners Riverside County Transportation Commission Riverside, California ATTACHMENT 10 4080 lemon Street, 3rd Floor • Riverside, CA Mailing Address: P. 0. Box 12008 • Riverside, CA 92502-2208 (951) 787-7141 •Fax (951) 787-7920 • www.rctc.org The Comprehensive Annual Financial Report (CAFR) of the Riverside County Transportation Commission (Commission) for the year ended June 30, 2014 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, 2014. 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, 2014. Theresia Trevino, Chief Financial Officer 305 • • • ' • • Riverside County Tronsporlotion Commission October 31, 2014 Board of Commissioners Riverside County Transportation Commission Riverside, California ATTACHMENT 11 4080 Lemon Street, 3rd Floor • Riverside, CA Mailing Address: P. 0. Box 12008 • Riverside, CA 92502-2208 (951) 787-7141 •Fax (951) 787-7920 • www.rctc.org 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, 2014, 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, 2014. The controls and procedures have been effective for the year ended June 30, 2014 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, 2014. 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. Anne Mayer, Exec · e Director ~~ Planning & Programming Director Theresia Trevino, Chief Financial Officer Robert Yates, Multimodal Services Director 306 ------------------------ .i • • • AGENDA ITEM SE • • • • • • • • RIVERSIDE COUNTY TRANSPORTATION COMMISSION DATE: December 10, 2014 TO: Riverside County Transportation Commission FROM: Audit Ad Hoc Committee Theresia Trevino, Chief Financial Officer THROUGH: Anne Mayer, Executive Director SUBJECT: Fiscal Year 2012/13 Single Audit Report AUDIT AD HOC COMMITTEE AND STAFF RECOMMENDATION: This item is for the Commission to receive and file the revised Fiscal Year 2012/13 Compliance Report for Single Audit. BACKGROUND INFORMATION: The Commission's FY 2012/13 audit results were presented to the Commission at its December 11, 2013. In September 2014, the Commission was advised by the State Controller's Office that the Compliance Report for Single Audit, or single audit report, did not meet the minimum reporting standards as contained in the Office of Management and Budget (OMB) Circular A-133, Audit of States, Local Governments, and Non-Profit Organizations. Based on discussions with the Commission's audit team from McGladrey LLP (McGladrey), new clarity auditing standards were issued last year. While the audit opinion on the Commission's financial statements reflected the new clarity standards, the single audit report did not include all of the new requirements. McGladrey revised the single audit report and submitted it to the State Controller's Office, who subsequently determined the single audit report meets the requirements of OMB Circular A-133. Staff recommends t.he Commission receive and file the revised Compliance Report for Single Audit for the FY 2012/13 as a replacement for the previously issued report. Attachment: 2014 Revised Compliance Report for Single Audit Agenda Item SE 307 • • • • Riverside County Transportation Commission Compliance Report June 30, 2013 I 308 Assurance "Tax• Consulting • • • 309 • • • Contents Schedule of Expenditures of Federal Awards Notes to Schedule of Expenditures of Federal Awards 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 for Each Major Federal Program; Report on Internal Control Over Compliance; and Report on Schedule of Expenditures of Federal Awards Required by OMB Circular A-133 Schedule of Findings and Questioned Costs Summary Schedule of Prior Year Audit Findings 310 2 3-4 5-7 8-9 10 • I • • 311 • • • Riverside County Transportation Commission Schedule of Expenditures of Federal Awards Year Ended June 30, 2013 Federal Grantor/Pass-Through Grantor/ Program or Cluster Title U.S. Department of Transportation: Highway Planning and Construction Program: Pass-through State Department of Transportation: 60/215 East Junction State Route 91 Utilities Relocation SR91/SR71 Junction Regional Rideshare 1215 at Blaine Street ARRA -74/215 Interchange Pass-through Orange County Transportation Authority: Regional Ridematching Pass-through Ventura County Transportation Commission: Regional Ridematching Total Highway Planning and Construction Program Federal Transit, Formula Grant: Urbanized Area Formula: Direct Program, Perris Valley Line Total Federal Transit, Formula Grant Public Transportation Research: Pass-through State Department of Transportation: Rising Stars in Transit Total Public Transportation Research Job Access and Reverse Commute Program (JARC): Pass-through Sun line Transit Agency: JARC Grant 5316 JARC Grant Pass-through Riverside Transit Agency: JARC Grant 5316 Total Job Access and Reverse Commute Program New Freedom Program: Pass-through Sunline Transit Agency: New Freedom 5317 Pass-through Riverside Transit Agency: New Freedom 5317 Total New Freedom Program Total expenditures of federal awards * Denotes major program See Notes to Schedule of Expenditures of Federal Awards. Catalog of Federal Domestic Assistance Number 20.205 20.205 20.205 20.205 20.205 ARRA-20.205 20.205 20.205 20.507* 20.514 20.516 20.516 20.516 20.521 20.521 312 Pass-Through Entity/ Identifying Number 07-31-082-01 08-31-002-02 08-31-033-02 08-41-042-00 13-31-073-00 10-31-025-03 11-41-139-00/C-1-2877 MOU RS0506/06-41-082-07 CA-90-Y827-00/CA-95-X 135-00 MOU M-004-10/10-25-089-00 CA-37-X148-01 MOU 11-26-072-00 CA-37-X158-00 CA-57-X063-01 CA-57-X068-00 Federal Expenditures $ 5,303 1,609,286 3,832,632 32,805 863,164 241,851 50,199 13,730 6,648,970 4,649,405 4,649,405 14,124 14,124 6,253 22,576 22,779 51,608 3,179 10,314 13,493 $11,377,600 • • • 313 • • • Riverside County Transportation Commission Notes to Schedule of Expenditures of Federal Awards Note 1. Basis of Presentation The accompanying schedule of expenditures of federal awards (the Schedule) presents the activity of all federal award programs of the Riverside County Transportation Commission (the Commission) for the year ended June 30, 2013. The Schedule includes federal awards received directly from federal agencies, as well as federal awards passed through other agencies. The Commission's reporting entity is defined in Note 1 to the Commission's basic financial statements. Because the Schedule presents only a selected portion of the operations of the Commission, it is not intended to, and does not, present the financial position of the Commission. The accompanying Schedule is presented on the modified-accrual basis of accounting. Expenditures are recognized following the cost principles contained in Office of Management and Budget (OMB) Circular A-87, Cost Principles for State, Local and Indian Tribal Governments, wherein certain types of expenditures are not allowable or are limited as to reimbursement. The information in this Schedule is presented in accordance with the requirements of 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. Note 2. Subrecipients Of the federal expenditures presented in the Schedule, the Commission did not provide any federal awards to subrecipients for the fiscal year ended June 30, 2013 . 2 314 • • • 315 • • • IMcGladrey 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, 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, 2013, and the related notes to the financial statements, which collectively comprise the Commission's basic financial statements, and have issued our report thereon dated November 6, 2013. 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 of the financial statements, we considered the Commission's internal control over financial reporting (internal control) to determine the audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the Commission's internal control. Accordingly, we do not express an opinion on the effectiveness of the Commission's internal control. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or 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. A significant deficiency is a deficiency, or combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies. Given these limitations, during our audit, we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified . 3 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. Purpose of this Report The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the Commission's internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the Commission's internal control and compliance. Accordingly, this communication is not suitable for any other purpose. Irvine, CA November 6, 2013 4 317 • • • • • • McGladrey LLP McGladrey Independent Auditor's Report on Compliance for Each Major Federal Program; Report on Internal Control Over Compliance; and Report on Schedule of Expenditures of Federal Awards Required by OMB Circular A-133 Board of Commissioners Riverside County Transportation Commission Riverside, CA Report on Compliance for the Major Federal Program We have audited Riverside County Transportation Commission's (the Commission) compliance with the types of compliance requirements described in the 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, 2013. 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. Management's Responsibility Management is responsible for compliance with the requirements of laws, regulations, contracts and grants applicable to its federal programs. Auditor's Responsibility Our responsibility is to express an opinion on compliance for the Commission's major federal program based on our audit of the types of compliance requirements referred to above. 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 OMS Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations. Those standards and OMS 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 a 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 on compliance for the major federal program. However, our audit does not provide a legal determination of the Commission's compliance. Opinion on Each Major Federal Program In our opinion, the Commission complied, in all material respects, with the types of compliance requirements referred to above that could have a direct and material effect on its major federal program for the year ended June 30, 2013 . 5 Report on Internal Control Over Compliance Management of the Commission is responsible for establishing and maintaining effective internal control over compliance with the types of compliance requirements referred to above. In planning and performing our audit of compliance, we considered the Commission's internal control over compliance with the types of requirements that could have a direct and material effect on the major federal program to determine the auditing procedures that are appropriate in the circumstances for the purpose of expressing an opinion on compliance for the major federal program 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. A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis. A material weakness in internal control over compliance is a deficiency, or combination of deficiencies, in internal control over compliance, such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of a federal program will not be prevented, or detected and corrected, on a timely basis. A significant deficiency in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance with a type of compliance requirement of a federal program that is less severe than a material weakness in internal control over compliance, yet important enough to merit attention by those charged with governance. 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 material weaknesses or significant deficiencies. We did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified. The purpose of this report on internal control over compliance is solely to describe the scope of our testing of internal control over compliance and the results of that testing based on the requirements of OMB Circular A-133. Accordingly, this report is not suitable for any other purpose. 6 319 • • • • • • Report on Schedule of Expenditures of Federal Awards Required by OMB Circular A-133 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, 2013, and the related notes to the financial statements, which collectively comprise the Commission's basic financial statements. We issued our report thereon dated November 6, 2013, which contained unmodified opinions on those financial statements. Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the basic financial statements. The accompanying schedule of expenditures of federal awards is presented for purposes of additional analysis as required by OMB Circular A-133 and is not a required part of the basic financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. The information has been subjected to the auditing procedures applied in the audit of the financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the schedule of expenditures of federal awards is fairly stated in all material respects in relation to the basic financial statements as a whole. Irvine, CA November 6, 2013 7 320 • • • 321 • • • Riverside County Transportation Commission Schedule of Findings and Questioned Costs Year Ended June 30, 2013 I. Summary of Auditor's Results Financial Statements Type of Auditor's Report Issued: Unmodified Internal control over financial reporting: • Material weakness( es) identified? • Significant deficiency(ies) identified that are not considered to be material weaknesses? Noncompliance material to financial statements noted? Federal Awards Internal control over major programs: • Material weakness( es) identified? • Significant deficiency(ies) identified that are not considered to be material weaknesses? Yes x No Yes x None Reported Yes x No Yes x No Yes X None Reported Type of auditor's report issued on compliance for major programs: Unmodified • Any audit findings disclosed that are required to be reported in accordance with Section 51 O(a) of OMB Circular A-133? Identification of major programs: Yes x No CFDA Number(s) Name of Federal Program or Cluster 20.507 Federal Transit, Formula Grant Dollar threshold used to distinguish between Type A and Type B programs: $ 341,328 Auditee qualified as low-risk auditee? 8 322 X Yes No Riverside County Transportation Commission Schedule of Findings and Questioned Costs (Continued) Year Ended June 30, 2013 II. Financial Statement Findings A. Internal Control Matters None reported. 8. Compliance Findings None reported. Ill. Findings and Questioned Costs for Federal Awards A. Internal Control None reported. B. Compliance Findings None reported. 9 323 • • • • • • Riverside County Transportation Commission Summary Schedule of Prior Year Audit Findings Year Ended June 30, 2013 There were no audit findings reported for the year ended June 30, 2012 . 10 324 • • AGENDA ITEM SF • • • • RIVERSIDE COUNTY TRANSPORTATION COMMISSION DATE: TO: FROM: THROUGH: SUBJECT: December 10, 2014 Riverside County Transportation Commission Mark Lancaster, Right of Way Manager ~~~~~~~~~~~~~~~~~~~~---11 Anne Mayer, Executive Director ~~~~~~~~~~~~~~~~~~~~-----;· Adopt Resolution No. 14--032 for Commission Election to Hear Future Resolutions of Necessity for the State Routes 71/91 Interchange Project and Designation of Commission's General Counsel STAFF RECOMMENDATION: This item is for the Commission to adopt Resolution No. 14--032, "Resolution of the Riverside County Transportation Commission Electing to Hear Future Resolutions of Necessity for the State Routes 71/91 Interchange Project and Designation of Commission's General Counsel to Process Resolution of Necessity Packages for the Project." BACKGROUND INFORMATION: The State Routes 71/91 (71/91} interchange project will add a new direct flyover connector from eastbound SR--91 to northbound SR-71 and reconfigure the eastbound SR-91 ramp between Green River Road and the 71/91 interchange. The project will also include restriping of the SR-91 eastbound lanes, modification or construction of new drainage facilities, grading of hillside slopes, construction of retaining walls, and modification of access driveways at select locations. The Commission, along with Caltrans District 8 oversight, is acquiring the right of way necessary for the construction of the project. As a part of the oversight process, one of the Commission's responsibilities is to hear future resolutions of necessity and designate the Commission's general counsel to process and approve the resolution of necessity packages. By adopting Resolution No. 14-032, the Commission agrees to follow all procedures for the resolution of necessity process as outlined in the Caltrans Right of Way manual, which requires that Commission staff meet with property owners to address any design concerns prior to seeking resolutions of necessity. The Resolution must be adopted by a two-thirds vote of the Commission. Attachment: Resolution No. 14-032 Agenda Item 8F 325 • RESOLUTION NO. 14-032 RESOLUTION OF THE RIVERSIDE COUNTY TRANSPORTATION COMMISSION ELECTING TO HEAR FUTURE RESOLUTIONS OF NECESSITY FOR THE STATE ROUTES 71/91 INTERCHANGE AND DESIGNATION OF COMMISSION GENERAL COUNSEL TO PROCESS RESOLUTION OF NECESSITY PACKAGES FOR THE PROJECT WHEREAS, the Riverside County Transportation Commission ("RCTC") is empowered to acquire by eminent domain any property to carry out its powers or functions pursuant to Public Utilities Code section 130220.5; WHEREAS, property may properly be acquired by eminent domain for the State Highway System pursuant to Streets and Highways Code section 102; WHEREAS, RCTC approved the construction of the State Routes 71/91 (71/91} Interchange project, which will add a new direct flyover connector from eastbound SR-91 to northbound SR-71 and reconfigure the eastbound SR-91 ramp between Green River Road and the 71/91 interchange. The project is on the State of California Highway System and has been approved by a cooperative agreement with the State of California Department of Transportation (Caltrans}, providing that RCTC will perform right of way activities as set forth in • the cooperative agreement for said project; • WHEREAS, all local public agency projects on the State of California Highway System, within the existing or proposed State of California rights of way are subject to the requirements of the State of California Department of Transportation (Caltrans) Right of Way Manual, and recent provisions to the Caltrans Right of Way Manual now require a local public agency to pass a resolution, by a four-fifths vote, making an election to hear all the Resolutions of Necessity for the project; and WHEREAS, RCTC will follow state statute requirements and the Caltrans Right of Way Manual processes in the issuance of the Notice of Intent to adopt a Resolution of Necessity and in the adoption of a Resolution of Necessity, and the RCTC General Counsel is designated to process and approve the resolution packages(s); NOW, THEREFORE, BE IT RESOLVED, by two-thirds vote, that the Riverside County Transportation Commission, will hear the Resolutions of Necessity associated with the construction of the 71/91 Interchange Project . 326 BE IT FURTHER RESOLVED that RCTC designates its General Counsel to prepare, review, process, and approve the Resolutions of Necessity packages for this project. APPROVED AND ADOPTED this 10th day of December, 2014. ATTEST: By: ___________ _ Jennifer Harmon Clerk of the Board By: ______________ _ Marion Ashley, Chair Riverside County Transportation Commission 327 • • • • • AGENDA ITEM 9 • • • • RIVERSIDE COUNTY TRANSPORTATION COMMISSION DATE: December 10, 2014 TO: Riverside County Transportation Commission FROM: Tanya Love, Goods Movement Manager THROUGH: Anne Mayer, Executive Director SUBJECT: Clay Street Grade Separation STAFF RECOMMENDATION: This item is for the Committee to: 1) 2) 3) 4) Deobligate $1,021,000 in 2009 Measure A Western County Economic Development Funds previously allocated to the county of Riverside (County) for the Interstate 215/Van Buren interchange project; Reprogram $1,021,000 in 2009 Measure A Western County Economic Development Funds to the County for the Clay Street grade separation project; Approve Agreement No. 08-31-124-01 Amendment No. 1 to Agreement No. 08-31-124-00, with the County for the 1-215/Van Buren interchange project and the Clay Street grade separation project; and Approve an increase of $1,021,000 in FY 2014/15 budgeted 2009 Measure A Western County Economic Development expenditures. BACKGROUND INFORMATION: On behalf of the city of Jurupa Valley, the County is serving as the lead agency to construct a grade separation at Clay Street located within the city of Jurupa Valley at Union Pacific Railroad between Van Buren Boulevard and Limonite Avenue. The project is under construction and is expected to be completed in December 2015; when completed, the $36,920,000 project will eliminate conflicts between vehicles and trains providing efficient, reliable, and uninterrupted freight and vehicular movement. The Clay Street grade separation project was one of 12 Trade Corridor Improvement Fund (TCIF) projects -located throughout Riverside County-receiving $150 million in Proposition lB funding from the California Transportation Commission (CTC). In September 2014, the Commission approved $2,432,000 in 2009 Measure A Western County Economic Development funds and $1,722,000 in additional Congestion Mitigation Air Quality funding for the Clay Street project due to a funding shortfall in the right of way and utility phase of the project. At this time, County staff identified that $1,021,000 in additional funding is required due to construction difficulties encountered with the relocation of a Southern California Gas transmission line . Agenda Item 9 328 To cover the funding shortfall, staff is requesting that $1,021,000 in 2009 Measure A Western County Economic Development funds be allocated to the County in June 2011, in support of the 1-215/Van Buren interchange project be reprogrammed to support the Clay Street grade separation project. Financial Information In Fiscal Year Budget: I No Year: I FY 2014/15 Amount: I $1,021,000 Source of Funds: 120.09 Measure A Western County Economic Development Fund Budget Adjustment: I Yes GL/Project Accounting No.: XX4008 81301268 3181301 Fiscal Procedures Approved: ~~ / Date: / 11/17/14 Attachment: County of Riverside's Funding Request Agenda Item 9 329 • • • COUNTY OF RIVERSIDE TRANSPORTATION AND LAND MANAGEMENT AGENCY PatriciaRomo,P.E. Juan C Perez, P.E., T.E. Director of Transportation and Land Management November 13, 2014 Anne Mayer Executive Director Transportation Department Riverside County Transportation Commission 4080 Lemon Street, 3rd Floor P.O. Box 12008 Riverside; CA 92502 Assistant Director of Transportation Subject: Request for Additional Utility Relocation Funding for the Clay Street Grade Separation Project. Dear Ms. Mayer, • The Riverside County Transportation Department is requesting that the Riverside County Transportation Commission (RCTC) provide additional funding for the Clay Street Grade Separation project that is needed for unexpected utility relocation expenses. • The County Transportation Department rs the lead agency for the construction of grade separation improvement to the existing at grade railroad crossing located on Clay Street within the City of Jurupa Valley. The Transportation Department has worked with RCTC to fully fund the project and the project is currently under construction. Most recently, on September 10, 2014, RCTC allocated $2.432 Million in 2009 Measure A Western County Economic Development Funds and $1. 722 Million in additional CMAQ funding for the project. In October, the Transportation Department was informed by Sempra Energy that the relocation of their 30" Southern California Gas transmission line could not proceed as planned. They informed us that they had encountered construction difficulties and would need to remove all piping they had installed, provide a new protective casing and preform a reinstallation of their pipe. The Gas Company is in a position of superior rights and the costs related to these changes are therefore the responsibility of the project. We were informed last week that the additional cost associated with the revised work will be $1.021 Million. The Transportation Department does not have control over the estimating, design or construction of the Sempra Energy facilities and could not have foreseen the substantial increase in cost resu:tlng from Sempra Energy's work. The Transportation Department is therefore requesting an additional $1.021 Million in funding needed to pay for the additional work by Sempra Energy . 4080 Lemon Street, gth Floor· Riverside, CA 92501 · (951) 955-6740 P.O. Box 1090 ·Riverside, CA 92502-1090 ·FAX (951) 955-3198 330 Anne Mayer Page2 November 13, 2014 Your quick review and consideration of this request will be appreciated. If you require any additional information, please contact Khalid Nasim {Engineering Division Manager) at 951-955- 3337 or by e-mail at knasim@rctlma.org. Sincerely, Patrici omo, P.E. Assistant Director Transportation Department 4080 Lemon Street, glh Floor· Riverside, CA 92501 · (951) 955-6740 P.O. Box 1090 ·Riverside, CA 92502-1090 ·FAX (951) 955-3198 331 • • • • • AGENDA ITEM 10 • • • • RIVERSIDE COUNTY TRANSPORTATION COMMISSION DATE: December 10, 2014 TO: Riverside County Transportation Commission FROM: Jennifer Harmon, Office and Board Services Manager THROUGH: Anne Mayer, Executive Director SUBJECT: Election of Riverside County Transportation Commission Officers and Appointment of Executive Committee Members STAFF RECOMMENDATION: This item is for: 1} The Commission to conduct an election of officers for 2015 -Chair, Vice Chair, and Second Vice Chair; 2} The cities of Corona, Moreno Valley, Murrieta, Riverside, and Temecula to appoint two 3} 4) representatives to the Executive Committee; 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 The cities of Blythe, Cathedral City, Coachella, Desert Hot Springs, Indian Wells, Indio, La Quinta, Palm Desert, Palm Springs, and Rancho Mirage to appoint one representative to the Executive Committee. BACKGROUND INFORMATION: Election of Officers In accordance with the Administrative Code, the Commission must annually hold an election of officers at its first meeting in December. The changes will be effective on January 1 of the following year. The officers of the Commission shall consist of the Chair, Vice Chair, and Second Vice Chair. At its October 9, 2013 meeting, the Commission adopted an amendment to the Administrative Code to modify the officer rotation procedure. Rather than requiring the city and county members alternate every year in the officer positions, the new policy requires there be at least one Supervisor and one city councilmember among the three officer positions at all times. "The Chair, the Vice Chair, and the Second Vice Chair shall regularly alternate between regular members of the Commission representing a city and a regular member of the Commission who is a member of the Riverside County Board of Supervisors. At all times, at least one of three officer positions -Chair, Vice Chair, or Second Vice Chair -shall be Agenda Item 10 332 held by a member of the Riverside County Board of Supervisors. During the time in which the Chair is a regular member of the Commission representing a city, either the Vice Chair or the Second Vice Chair, or both shall be a regular member of the Commission who is a member of the Riverside County Board of Supervisors. During the time in which the Chair is a regular Commission member who is a member of the Riverside County Board of Supervisors, either the Vice Chair or the Second Vice Chair, or both shall be a regular member of the Commission representing a city in order to ensure the participation of both city and county representatives in leadership positions." For 2014, Marion Ashley served as Chair, Daryl Busch as Vice Chair, and Scott Matas as Second Vice Chair. For 2015, if the Chair and Vice Chair are regular members of the Commission representing a city, and the Second Vice Chair shall be a regular member of the Commission representing the Riverside County Board of Supervisors. Executive Committee Appointments In accordance with the Administrative Code, appointees to the Executive Committee serve for a two-year term. Appointments were made to the Executive Committee at the December 2012 Commission meeting as follows: 1) Commissioners Steve Adams and Rick Gibbs representing the cities of Corona, Moreno Valley, Murrieta, Riverside, and Temecula; and 2) Commissioner Terry Henderson representing the cities of Blythe, Cathedral City, Coachella, Desert Hot Springs, Indian Wells, Indio, La Quinta, Palm Desert, Palm Springs, and Rancho Mirage. At the December 2013 meeting, Commissioner Ben Benoit was appointed to represent the cities of Banning, Beaumont, Catimesa, Canyon Lake, Hemet, Jurupa Valley, Lake Elsinore, Menifee, Norco, Perris, San Jacinto, and Wildomar after the resignation of Commissioner Bob Botts. The term of the appointed Executive Committee members will be for calendar years 2015 and 2016. Commission members will be given time to caucus prior to the election and appointments. Attachment: List of Past Commission Chairs Agenda Item 10 333 • • • • livernde County Tronsportotion Commission COMMISSION CHAIRS 2014 Marion Ashley County of Riverside -District 5 2013 Karen Spiegel City of Corona 1998 Bob Buster County of Riverside -District 1 2012 John J. Benoit County of Riverside -District 4 1997 Bob Buster County of Riverside -District 1 2011 Greg Pettis City of Cathedral City 1996 Alex Clifford City of Riverside 2010 Bob Buster County of Riverside -District 1 1995 Alex Clifford City of Riverside 2009 Bob Magee City of Lake Elsinore 1994 Corky Larson County of Riverside -District 4 2008 Jeff Stone County of Riverside -District 3 1993 Al Lopez City of Corona 2007 Terry Henderson City of La Quinta 1992 Al Lopez City of Corona 2006 Marion Ashley County of Riverside -District 5 1991 Kay Ceniceros County of Riverside -District 3 2005 Robin Lowe City of Hemet 1990 Kay Ceniceros County of Riverside -District 3 2004 Roy Wilson County of Riverside -District 4 1989 Jack Clarke City of Riverside 2003 Ron Roberts City ofTemecula 1988 Don Baskett City of Hemet • 2002 John Tavaglione County of Riverside -District 2 1987 Melba Dunlap County of Riverside -District 2 2001 Will Kleindienst City of Palm Springs 1986 Jean Mansfield City of Riverside 2000 Tom Mullen County of Riverside -District 5 1985 Susan Cornelison Public Member 1999 Jack van Haaster City of Murrieta 1984 Susan Cornelison Public Member 1983 Roy Wilson City of Palm Desert 1982 Norton Younglove County of Riverside -District 5 1981 Jean Mansfield City of Riverside 1980 Donald Schroeder County of Riverside -District 2 1979 Donald Schroeder County of Riverside -District 2 1978 Russell Beirich City of Palm Springs 1977 Russell Beirich City of Palm Springs • 334