riverside transit agency board of directors meeting · members of the public may address the board...

ITEM RECOMMENDATION

1. CALL TO ORDER 2. ROLL CALL

3. FLAG SALUTE 4. PUBLIC COMMENTS – NON-AGENDA ITEMS RECEIVE COMMENTS

Members of the public may address the Board regarding any item within the subject matter jurisdiction of the Board; however, no action may be taken on off-agenda items unless authorized by law. Comments shall be limited to matters not listed on the agenda. Members of the public may comment on any matter listed on the agenda at the time that the Board considers that matter. Each person's presentation is limited to a maximum of three (3) minutes

5. APPROVAL OF MINUTES – OCTOBER 27, 2011, BOARD

MEETING (P.5) APPROVE 6. ACTION BY THE CITY OF JURUPA VALLEY (CITY) TO

BECOME A MEMBER ENTITY OF RTA’S JOINT POWERS AGREEMENT (JPA) (P.10) APPROVE

Riverside Transit Agency Board of Directors Meeting

Regular Meeting No. 2011-10A November 17, 2011

2:00 p.m. County of Riverside Administrative Building

Board of Supervisors Chambers 4080 Lemon Street, First Floor

Riverside, CA 92501

PLEASE NOTE: The Chairman of the Board kindly requests that cell phones be turned off during the meeting

Any person with a disability who requires a modification or accommodation in order to participate in this meeting or any person with limited English proficiency (LEP) who requires language assistance to communicate with the RTA Board during the meeting should contact the RTA Clerk of the Board, telephone number (951) 565-5044, no fewer than two business days prior to this meeting to enable RTA to make reasonable arrangements to assure accessibility or language assistance for this meeting. Agenda related writings or documents provided to the Board of Directors are available for public inspection during the meeting or may be requested from the office of the Clerk of the Board.

RTA BOARD OF DIRECTORS MEETING PAGE 2 NOVEMBER 17, 2011

7. LEGISLATIVE CONSULTANT UPDATE (P.11) RECEIVE UPDATE

ITEM RECOMMENDATION 8. CONSENT CALENDAR

All items on the Consent Calendar will be approved by one motion and there will be no discussion on individual items unless a Board member or member of the public requests a specific item be pulled from the calendar for separate discussion A. Financial Profile – October 2011 (P.12) RECEIVE AND FILE B. Ridership Report – October 2011 (P.25) RECEIVE AND FILE C. On Time Performance – October 2011 (P.31) RECEIVE AND FILE D. Administration and Operations Committee Meeting

– 11/2/11 Draft Minutes (P.32) E. Budget and Finance Committee Meeting – 11/2/11

Draft Minutes (P.35) RECEIVE AND FILE F. October 2011 Productivity Improvement Program

(PIP) Results (P.38) RECEIVE AND FILE G. Agency Credit Card Statement – October 2011

(P.46) RECEIVE AND FILE H. Authorization to Award Agreement NO. 11-046 to

Harbor Diesel Industries (HDI) for Transmission Rebuilding Services (P.48) APPROVE

(Budget and Finance Committee Reviewed and Recommended 11/2/11 Meeting)

I. Adjustment of Legal Fees (P.50) APPROVE

(Administration and Operations Committee Reviewed and Recommended 11/2/11 Meeting)


9. FISCAL YEAR 2010/2011 (FY11) FINANCIAL AUDIT

RESULTS (P.51) APPROVE (Budget and Finance Committee Reviewed and Recommended 11/2/11 Meeting)

10. AUTHORIZATION TO PURSUE MEDI-CAL

REIMBURSEMENT FOR TRANSPORTATION SERVICES ASSOCIATED WITH MEDI-CAL COVERED SERVICES (P.109) APPROVE

(Administration and Operations Committee Reviewed and Recommended 11/2/11 Meeting)

11. AUTHORIZATION TO DONATE ONE (1) SURPLUS TROLLEY VEHICLE TO THE RAMONA BOWL AMPHITHEATRE (P.111) APPROVE (Administration and Operations Committee Reviewed and Recommended 11/2/11 Meeting)

12. APPROVE RESOLUTION 2011-19 AUTHORIZING CHANGES TO CALIFORNIA PUBLIC EMPLOYEES’ RETIREMENT SYSTEM (CALPERS) ADMINISTRATIVE EMPLOYEE CONTRIBUTIONS (P.112) APPROVE

13 TRANSPORTATION NOW UPDATE (P.118) RECEIVE AND FILE 14. BOARD MEMBER COMMENTS AND REMARKS 15. ANNOUNCEMENTS 16. NEXT MEETING Regular Meeting of the RTA Board of Directors Thursday, December 15, 2011 2:00 p.m. Board of Supervisors Chambers County Administrative Center 4080 Lemon Street, First Floor Riverside, CA 92501


17. CLOSED SESSION: PURSUANT TO GOVERNMENT CODE SECTION 54957 TO REVIEW THE PERFORMANCE OF THE CHIEF EXECUTIVE OFFICER

18. MEETING ADJOURNMENT

RIVERSIDE TRANSIT AGENCY Board of Directors

Minutes of Meeting No. 2011-9A Regular Meeting October 27, 2011

1. CALL TO ORDER

Chairman Bob Buster called the regular meeting of the Riverside Transit Agency Board of Directors to order at 2:00 p.m., on Thursday, September 22, 2011, in the Riverside County Board of Supervisors Chambers, 4080 Lemon Street, Riverside, CA.

2. ROLL CALL Present: Absent: 1. Don Robinson, City of Banning 1. Doug McAllister, City of Murrieta 2. Jeff Fox, City of Beaumont 2. Marion Ashley, County of Riverside, District V 3. Ella Zanowic, City of Calimesa 4. Barry Talbot, City of Canyon Lake 5. 1Karen Spiegel Scott, City of Corona 6. Ike Bootsma, City of Eastvale 7. Daryl Hickman, City of Lake Elsinore 8. Jerry Franchville, City of Hemet 9. Wallace Edgerton, City of Menifee

10. Jesse Molina, City of Moreno Valley 11. Harvey Sullivan, City of Norco 12. Joanne Evans, City of Perris 13. Andy Melendrez, City of Riverside 14. Andrew Kotyuk, City of San Jacinto 15. Jeff Comerchero, City of Temecula 16. Bridgette Moore, City of Wildomar 17. Bob Buster, County of Riverside, District I 18. 2Frank Hall, County of Riverside, District II 19. 3Ron Roberts, County of Riverside, District III

3. FLAG SALUTE

Director Hickman led the attendees in the flag salute. 1Alternate for Director Jason Scott, City of Corona 2Alternate for Director John Tavaglione, County of Riverside, District II 3Alternate for Director Jeff Stone, County of Riverside, District III

Item 5 5

4. PUBLIC COMMENTS – NON-AGENDA ITEMS None 5. APPROVAL OF MINUTES – SEPTEMBER BOARD MEETING M/S/C (MELENDREZ/ROBINSON) approving the September 22, 2011, Board meeting minutes.

The motion carried with 14 affirmative votes and four abstentions.

6. LEGISLATIVE CONSULTANT UPDATE Chairman Buster announced that David Turch was unavailable to be at the Board meeting due to family illness. Mr. Turch will present an update at the November 17, 2011, Board meeting. 7. CONSENT CALENDAR

M/S/C (EVANS/MELENDREZ) approving the receipt and file of item A –Financial Profile –

September 2011. The motion carried unanimously. M/S/C (EVANS/MELENDREZ) approving the receipt and file of item B – Ridership Report –

September 2011. The motion carried unanimously. M/S/C (EVANS/MELENDREZ) approving the receipt and file of item C – On Time Performance –

September 2011. The motion carried unanimously. M/S/C (EVANS/MELENDREZ) approving the receipt and file of item D – Budget and Finance

Committee Meeting – 10/5/11 Draft Minutes. The motion carried unanimously. M/S/C (EVANS/MELENDREZ) approving the receipt and file of item E – September 2011

Productivity Improvement Program (PIP) Results. The motion carried unanimously. M/S/C (EVANS/MELENDREZ) approving the receipt and file of item F – Agency Credit Card

Statement – September 2011. The motion carried unanimously. M/S/C (EVANS/MELENDREZ) approving the receipt and file of item G – Annual Report for Public

Agencies Self-Insured for Workers’ Compensation Benefits. The motion carried unanimously. M/S/C (EVANS/MELENDREZ) approving item H – Authorization to Award Agreement No. 11-049

to Pacific Builders & Roofing, Inc. DBA WSP Roofing for Non-Structural Roof Replacement. The motion carried unanimously.

8. AUTHORIZATION TO ACCEPT GRANTS OF EASEMENT AND CONSENT TO

RECORDATION WITH THE CLERK AT THE COUNTY OF RIVERSIDE ASSESSOR’S OFFICE. M/S/C (TALBOT/COMERCHERO) as to the following:

• Authorize the Clerk of the Board to execute a Resolution of Acceptance for Grant of Easement between Earl David Grimes (“Grantor”) and the Riverside Transit Agency, a joint powers authority (“Grantee”),

• Authorize the Clerk of the Board to execute a Resolution of Acceptance for Grant of Easement between E. David Weiscz Residuary Trust, Kleeman

Item 5 6

Family Trust, Leslie Ima and Leonard Miller (“Grantors”) and the Riverside Transit Agency, a joint powers authority (“Grantee”), and

• Consent to recordation of Grants of Easement by Earl David Grimes (“Grantor”) and E. David Weiscz Residuary Trust, Kleeman Family Trust, Leslie Ima and Leonard Miller (“Grantors”).

The motion carried unanimously.

9. QUARTERLY COMPREHENSIVE ROUTE PERFORMANCE REPORT. Mr. Fajnor presented an update on the Quarterly Comprehensive Route Performance.

10. TRANSPORTATION NOW UPDATE.

Mr. Kneepkens gave a presentation on the T-NOW Chapters and invited everyone to attend the T-NOW Annual Luncheon scheduled for November 3, 2011, at the UCR Alumni Center.

11. SELECTION OF NOMINATING COMMITTEE. Chairman Buster commented that the procedure was to select four members of the Board of

Directors, each with not less than six-months consecutive service on the Board, by lot to recommend a nominee, who is not a member of the Nominating Committee, for each office to the Board of Directors prior to an election. A selected Nominating Committee member who waives participation on the Nominating Committee may be a nominee. Two members of the Board of Directors shall be selected by lot as alternate members of the Nominating Committee to serve in the absence or waiver of a member of the Nominating Committee.

General Counsel Smart noted for the information of the Board members, that this is a nomination

process; the Committee will nominate one individual for each office and the election will be at the December meeting. Other Board members may be nominated at that time by any individual member of the Board. This is a Nominating Committee to recommend the three individuals to serve as your officers.

The following names were drawn by Chairman Buster:

1. Doug McAllister, City of Murrieta 2. Bridgette Moore, City of Wildomar 3. Jason Scott, City of Corona 4. Andrew Kotyuk, City of San Jacinto

Alternates: 5. Wallace Edgerton, City of Menifee 6. Ike Bootsma, City of Eastvale

Vice Chairman McAllister and Director Scott were not in attendance at the Board meeting. The

Clerk of the Board will confirm their participation on the Nominating Committee and coordinate a meeting of this Committee prior to the December Board meeting.

Item 5 7

12. BOARD MEMBER COMMENTS AND REMARKS Alternate Spiegel stated she had the opportunity to attend the APTA Expo. An item that came out

of the Expo was the possibility of implementing a new validating system for passes, one transportation card that could work with all the transit providers.

Director Evans invited everyone to the Perris Centennial Veteran’s Day Parade on November 5,

and announced the United States Marine Corps birthday will be November 10 and Veteran’s Day on November 11.

Director Robinson updated the board on the SCAG RTP process and how that will impact the

State, region and RTA.

13. ANNOUNCEMENTS Chairman Buster called Mr. Bach, RTA Director of Maintenance, to the podium. He presented a

certificate of appreciation to Mr. Bach for achieving 365 days of no lost time injuries in the workplace. Mr. Rubio commented that the achievement is outstanding and speaks highly of Mr. Bach. RTA is very proud of Mr. Bach’s accomplishments.

Mr. Rubio stated at last month’s Board meeting, Mr. Louis Mazei from Menifee voiced his

concerns about service improvements on the CommuterLink routes and that the City of Menifee was not delineated properly in the Ride Guide. RTA staff has been working with Mr. Mazei to address and resolve both of his concerns.

Mr. Joseph Larry spoke out about RTA buses needing more wheelchair securement locations.

RTA is in the process of purchasing new buses and Mr. Bach has modified the technical specification to have three or more wheelchair securement locations.

Mr. Rubio announced that RTA would be participating in the following events: On October 28 and

29, the Ghost Walk in Riverside with a static display of the Trolley in front of City Hall. On November 5, the Perris Veteran's Day Parade with a flag bus and on November 11, the Murrieta Veteran's Day Parade and the Canyon Lake Veterans Memorial each with a flag bus. On November 17, at the next Board meeting, an RTA bus will be outside the county building for the Stuff a Bus event with Operation SafeHouse.

13. NEXT MEETING A regular meeting of the RTA Board of Directors is scheduled on Thursday, November 17, 2011,

at 2:00 p.m., in the Riverside County Board of Supervisors Chambers, at 4080 Lemon Street, Riverside, CA.

14. ADJOURNMENT The meeting adjourned at 2:44 p.m.

Respectfully submitted,

Larry Rubio

Chief Executive Officer

Natalie Gomez

Clerk of the Board of Directors

Item 5 8

ATTENDANCE SHEET October 27, 2011

NAME ORGANIZATION/TITLE 1. LARRY RUBIO CHIEF EXECUTIVE OFFICER

2. KEN SMART AGENCY GENERAL COUNSEL

3. TOM FRANKLIN CHIEF OPERATING OFFICER

4. CRAIG FAJNOR CHIEF FINANCIAL OFFICER

5. VINCE ROUZAUD CHIEF PROCUREMENT AND LOGISTICS OFFICER

6. NATALIE ZARAGOZA CONTRACTS MANAGER

7. BOB BACH DIRECTOR OF MAINTENANCE

8. LORELLE MOE-LUNA INTERIM DIRECTOR OF PLANNING

9. LAURA MURILLO DIRECTOR OF HUMAN RESOURCES

10. RICK KACZEROWSKI DIRECTOR OF INFORMATION TECHNOLOGY

11. JIM KNEEPKENS DIRECTOR OF MARKETING

12. NATALIE GOMEZ CLERK OF THE BOARD OF DIRECTORS

13. VIRGINIA WERLY CONTRACT OPERATIONS MANAGER

14. BRAD WEAVER MARKETING MANAGER

15. CHRISTINA RILEY EXECUTIVE ASSISTANT

16. TAMMI FORD CONTRACTS ADMINISTRATOR

17. KEITH WHITE RIVERSIDE RESIDENT

18. PAT PEZOLDT TEMECULA RESIDENT

19. NANCY IBARRAA BLINDNESS SUPPORT SERVICES, RIVERSIDE

20. SHARON HALL NORCO RESIDENT

21. ELIZABETH URTIAGA CITY OF BEAUMONT

22. DUG BEGLEY PRESS ENTERPRISE

Item 5 9

RIVERSIDE TRANSIT AGENCY 1825 Third Street

Riverside, CA 92507

November 17, 2011

TO: BOARD OF DIRECTORS FROM: Larry Rubio, Chief Executive Officer SUBJECT: Action by the City of Jurupa Valley (City) to Become a Member Entity of

RTA’s Joint Powers Agreement (JPA)

Summary: The City of Jurupa Valley (City) incorporated effective July 1, 2011. The Agency’s process to invite new cities to join the JPA involves the Chairman of the Board sending a formal invitation to the new city; that city approves a resolution naming their designated board member and alternate to become a party to the JPA; and, the Board then formally approves the new city as a new member to the JPA. An excerpt from the JPA is listed below:

Section 20. ADDITIONAL PARTIES of the JPA, Duly qualified parties may be added to this agreement upon such terms and conditions as may be imposed by the Board.

On October 27, 2011, immediately following the Executive Committee meeting, Chairman Buster extended a formal invitation to the City of Jurupa Valley to become a member of the Agency’s JPA. The City of Jurupa Valley took action at their City Council meeting on November 3, 2011, to join RTA’s JPA. Councilmember Frank Johnston was appointed as the City’s representative to the RTA Board of Directors and Mayor Laura Roughton as alternate representative.

Recommendation:

Approve the City of Jurupa Valley to become a member entity of the Riverside Transit Agency’s Joint Powers Agreement and recognize Councilmember Frank Johnston as the City’s representative to the RTA Board of Directors and Mayor Laura Roughton as alternate representative.

Item 6 10

ITEM 7

LEGISLATIVE CONSULTANT

UPDATE

David Turch

Item 7 11


Riverside, CA 92507

November 17, 2011

TO: BOARD OF DIRECTORS THRU: Larry Rubio, Chief Executive Officer FROM: Craig Fajnor, Chief Financial Officer SUBJECT: Financial Profile – October 2011 Summary: The attached report summarizes the Agency’s performance in the

areas of revenues, operating expenses, ridership, and service levels (in terms of revenue service hours and revenue service miles) for fiscal year-to-date October FY12.

Recommendation: Receive and file.

Item 8A 12

FINANCIAL PROFILE

October 2011

Overview October total revenue of $5,843,377 is $617,548 or 12 percent over budget. Year-to-date revenue of $26,189,784 is $5,121,728 or 24 percent over budget. Both variances are attributable to greater than anticipated prior year capital contribution revenue and farebox revenue. October operating expenses of $4,098,541 are $238,867 or 6 percent under budget. Year-to-date expenses of $16,238,092 are $1,009,681 or 6 percent under budget. Variance analysis by cost element is provided in the financial discussion below. During the month of October, RTA carried a total of 801,033 passengers. This consisted of 617,480 passengers on directly operated fixed routes, 151,691 on contracted fixed routes, and 31,862 Dial-A-Ride/Taxi Overflow trips. This reflects an increase of 12 percent when comparing October 2011 to October 2010. FY12 year-to-date system-wide ridership of 2,882,198 reflects an 8 percent increase over the same period in FY11. Monthly ridership on fixed route service increased 12 percent over the prior year, while year-to-date fixed route ridership increased 8 percent over the same period in FY11. These increases are attributed to the expansion of and growing popularity with the discounted pass programs with educational institutions. Of particular note, monthly CommuterLink ridership increased 24 percent over the same period in FY11, while year-to-date CommuterLink ridership increased 21 percent over the same period in FY11. These increases are attributed to the aggressive marketing of this premium service. Monthly DAR/Taxi Overflow trips increased 20 percent over the prior year, while year-to-date DAR/Taxi ridership increased 15 percent over the same period in FY11. These increases are attributed to the elasticity of demand from the January 2010 Board-directed policy changes.

Item 8A 13

During October, RTA provided a total of 52,813 revenue service hours and logged a total of 883,988 combined revenue miles. This reflects an increase of 4 percent in hours and an increase of 3 percent in miles, respectively, when comparing October 2011 to October 2010. FY12 year-to-date actual revenue service hours of 205,264 and revenue miles of 3,456,006 reflect an increase of 2 percent in hours and an increase of 1 percent in miles, respectively, when compared to the same period in FY11. October farebox revenue of $898,449 is $110,604 or 14 percent over budget. The year-to-date farebox revenue of $3,396,884 is $327,039 or 11 percent over budget. These variances are due to the ridership increases discussed above, as well as greater than anticipated pass sales.

Financial Discussion

Salaries and benefits expense of $1,926,313 is $93,173 or 5 percent under budget in October. Year-to-date salaries and benefits expenses of $7,763,866 are $379,058 or 5 percent under budget. Both the monthly and year-to-date variances are attributed to the use of paid time off, unfilled positions and less than anticipated medical expenses. Purchased transportation expenses of $1,529,266 are $65,353 or 4 percent under budget in October. Year-to-date purchased transportation expenses of $6,029,709 are $211,113 or 3 percent under budget. Both variances are attributed to contractual efficiencies. Total services expenses of $142,454 are $41,562 or 23 percent under budget in October. Year-to-date service expenses of $615,426 are $144,998 or 19 percent under budget. Both variances are attributed to less than anticipated use of consultants/contract services and CNG Compressor Maintenance. Materials and supplies expenses of $313,703 are $5,538 or 2 percent over budget in October. Year-to-date materials and supplies expenses of $1,144,228 are $55,921 or 5 percent under budget. The monthly variance is attributed to greater than anticipated parts expense. The year-to-date variance is attributed to less than anticipated CNG fuel expense. Other expenses of $186,804 are $44,318 or 19 percent under budget in October. Year-to-date other expenses of $684,863 are $218,591 or 24 percent under budget. Both variances are attributed to less than anticipated insurance and training expenses.

Item 8A 14

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RTA Set of Books Date: 09-NOV-11 14:13:32Comparative Balance Sheet Page: 1Current Period: OCT-12

Currency: USD No specific Ledger requested

As of As of OCT-12 OCT-11

-------------- --------------Assets

Cash & Cash Items 30,253,608.03 26,697,777.50 Cash held by Trustee - Restricted 1,908,050.40 1,905,086.58 Receivables 683,484.50 661,080.20 Due from Other Governmental agencies 3,865,022.97 4,382,214.92 Interest Receivable 23,144.84 10,000.00 Materials & Supplies Inventory 773,443.07 998,698.60 Capital Assets 27,910,863.96 29,876,662.62 Financing Costs - COP 35,838.30 62,717.58 Other Assets 852,937.62 534,178.91

-------------- --------------Total Assets 66,306,393.69 65,128,416.91

============== ==============Liabilities

Trade Payables 6,671,710.23 5,102,517.35 Accrued Payroll 714,048.93 502,775.79 Compensated Absences Payable 858,808.25 813,087.32 Interest Payable 12,766.67 18,454.24 Current portion of Capital lease 1,880,000.00 1,820,000.00 Reserve 1,093,017.94 5,504,843.99 Deferred revenue 16,106,740.43 12,513,253.85 Capital lease obligation - Long Term 1,950,000.00 3,830,000.00

-------------- --------------Total Liabilities 29,287,092.45 30,104,932.54

Net AssetsGrants & Other Capital 9,629,360.55 9,629,360.55 Accumulated Earnings/Loss 27,389,940.69 25,394,123.82

-------------- --------------Total Net Assets 37,019,301.24 35,023,484.37

-------------- --------------Total Liabilities & Net Assets 66,306,393.69 65,128,416.91

============== ==============

Item 8A 15

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RTA Set of Books Date: 09-NOV-11 14:13:32Revenue Detail Report W/Capital Contribution Page: 1

Current Period: OCT-12


PERIOD TO DATE YEAR TO DATE ACTUAL PCT BUDGET PCT VARIANCE VAR % ACTUAL PCT BUDGET PCT VARIANCE VAR %

______________ _____ ______________ _____ ______________ ______ ______________ _____ ______________ _____ ______________ ______

Passenger Fares 898,448.54 15.4 787,844.15 15.1 110,604.39 14.0 3,396,884.06 13.0 3,069,845.03 14.6 327,039.03 10.7

Local Operating AssistanceTDA/LTF Gen Operating Assista 2,960,811.00 50.7 2,960,810.00 56.7 1.00 0.0 11,843,243.00 45.2 11,843,240.00 56.2 3.00 0.0 Measure A Operating Assistanc 187,476.00 3.2 187,474.00 3.6 2.00 0.0 996,175.00 3.8 996,170.00 4.7 5.00 0.0

State Operating AssistanceSTA Operating Assistance 0.00 0.0 0.00 0.0 0.00 n/m 0.00 0.0 0.00 0.0 0.00 n/m

Federal Operating AssistanceSection 5307 (9) 1,120,833.34 19.2 1,120,833.34 21.4 0.00 0.0 4,483,333.36 17.1 4,483,333.36 21.3 0.00 0.0 CMAQ 0.00 0.0 0.00 0.0 0.00 n/m 0.00 0.0 0.00 0.0 0.00 n/mSection 5311 (18) 35,517.33 0.6 35,517.33 0.7 0.00 0.0 142,069.32 0.5 142,069.32 0.7 0.00 0.0 Section 5316 JARC/New Freedom 53,439.60 1.0 73,516.26 1.4 (20,076.66) (27.3) 223,172.69 1.0 294,065.04 1.4 (70,892.35) (24.1)Section 26 Planning 0.00 0.0 0.00 0.0 0.00 n/m 0.00 0.0 0.00 0.0 0.00 n/m

Other Operating AssistanceRevenue Lease 0.00 0.0 0.00 0.0 0.00 n/m 2,500.00 0.0 0.00 0.0 2,500.00 n/mOther Revenue 36,135.52 0.6 59,833.33 1.1 (23,697.81) (39.6) 354,361.94 1.4 239,333.32 1.1 115,028.62 48.1

-------------- ----- -------------- ----- -------------- ----- -------------- ----- -------------- ----- -------------- -----Total Operating 5,292,661.33 n/m 5,225,828.41 n/m 66,832.92 1.3 21,441,739.37 n/m 21,068,056.07 n/m 373,683.30 1.8

Capital Contributions Revenue 560,161.51 n/m 0.00 n/m 560,161.51 n/m 4,757,490.72 n/m 0.00 n/m 4,757,490.72 n/m-------------- ----- -------------- ----- -------------- ----- -------------- ----- -------------- ----- -------------- -----

Total Revenue 5,843,376.59 100.0 5,225,828.41 100.0 617,548.18 11.8 26,189,783.84 100.0 21,068,056.07 100.0 5,121,727.77 24.3 ============== ===== ============== ===== ============== ===== ============== ===== ============== ===== ============== =====

Item 8A 16

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RTA Set of Books Date: 09-NOV-11 14:13:32Revenue Budget Variance Report Page: 1




______________ _____ ______________ _____ ______________ ______ ______________ _____ ______________ _____ ______________ ______

Farebox Revenue

Revenue Line 1 150,995.19 16.8 134,576.35 17.1 16,418.84 12.2 581,023.34 17.1 532,552.76 17.3 48,470.58 9.1 Revenue Line 3 9,886.71 1.1 7,424.45 0.9 2,462.26 33.2 33,211.09 1.0 30,050.41 1.0 3,160.68 10.5 Revenue Line 7 12,815.36 1.4 10,180.67 1.3 2,634.69 25.9 46,046.15 1.4 39,935.21 1.3 6,110.94 15.3 Revenue Line 8 13,558.11 1.5 12,270.09 1.6 1,288.02 10.5 52,410.72 1.5 48,122.65 1.6 4,288.07 8.9 Revenue Line 10 22,985.27 2.6 18,655.50 2.4 4,329.77 23.2 79,510.51 2.3 73,992.87 2.4 5,517.64 7.5 Revenue Line 11 15,705.97 1.7 13,522.50 1.7 2,183.47 16.1 61,116.25 1.8 53,280.65 1.7 7,835.60 14.7 Revenue Line 12 23,153.82 2.6 20,888.27 2.7 2,265.55 10.8 90,387.41 2.7 81,957.46 2.7 8,429.95 10.3 Revenue Line 13 23,003.82 2.6 20,377.89 2.6 2,625.93 12.9 89,767.58 2.6 80,123.28 2.6 9,644.30 12.0 Revenue Line 14 20,085.81 2.2 18,335.31 2.3 1,750.50 9.5 79,343.71 2.3 72,021.54 2.3 7,322.17 10.2 Revenue Line 15 37,078.53 4.1 33,048.92 4.2 4,029.61 12.2 141,730.82 4.2 131,363.97 4.3 10,366.85 7.9 Revenue Line 16 53,494.61 6.0 40,853.83 5.2 12,640.78 30.9 187,831.01 5.5 161,509.01 5.3 26,322.00 16.3 Revenue Line 18 16,083.79 1.8 14,320.06 1.8 1,763.73 12.3 62,739.10 1.8 56,122.23 1.8 6,616.87 11.8 Revenue Line 19 41,824.03 4.7 37,321.79 4.7 4,502.24 12.1 165,735.62 4.9 147,774.41 4.8 17,961.21 12.2 Revenue Line 20 25,728.87 2.9 23,238.46 2.9 2,490.41 10.7 100,324.50 3.0 89,930.70 2.9 10,393.80 11.6 Revenue Line 21 12,685.33 1.4 11,480.10 1.5 1,205.23 10.5 51,547.81 1.5 45,145.61 1.5 6,402.20 14.2 Revenue Line 22 39,371.83 4.4 33,894.34 4.3 5,477.49 16.2 147,051.36 4.3 132,583.51 4.3 14,467.85 10.9 Revenue Line 23 8,908.83 1.0 6,679.33 0.8 2,229.50 33.4 31,250.70 0.9 26,306.89 0.9 4,943.81 18.8 Revenue Line 24 7,501.85 0.8 6,539.41 0.8 962.44 14.7 27,359.54 0.8 25,709.89 0.8 1,649.65 6.4 Revenue Line 27 45,531.99 5.1 36,930.24 4.7 8,601.75 23.3 167,319.28 4.9 145,442.80 4.7 21,876.48 15.0 Revenue Line 29 13,311.77 1.5 10,482.95 1.3 2,828.82 27.0 50,060.61 1.5 41,159.70 1.3 8,900.91 21.6 Revenue Line 30 6,894.85 0.8 5,951.70 0.8 943.15 15.8 25,864.87 0.8 23,635.80 0.8 2,229.07 9.4 Revenue Line 31 11,479.05 1.3 7,606.28 1.0 3,872.77 50.9 39,660.77 1.2 29,834.53 1.0 9,826.24 32.9 Revenue Line 32 9,352.22 1.0 10,057.08 1.3 (704.86) (7.0) 31,404.64 0.9 29,056.29 0.9 2,348.35 8.1 Revenue Line 33 3,534.38 0.4 2,406.25 0.3 1,128.13 46.9 12,296.95 0.4 9,739.14 0.3 2,557.81 26.3 Revenue Line 35 6,571.47 0.7 4,693.34 0.6 1,878.13 40.0 24,234.04 0.7 18,996.80 0.6 5,237.24 27.6 Revenue Line 40 2,889.73 0.3 1,685.26 0.2 1,204.47 71.5 9,850.78 0.3 6,821.14 0.2 3,029.64 44.4 Revenue Line 41 10,386.15 1.2 7,644.55 1.0 2,741.60 35.9 33,388.55 1.0 30,330.80 1.0 3,057.75 10.1 Revenue Line 42 4,428.72 0.5 3,398.77 0.4 1,029.95 30.3 16,071.30 0.5 13,584.54 0.4 2,486.76 18.3 Revenue Line 49 18,657.13 2.1 19,115.43 2.4 (458.30) (2.4) 74,250.20 2.2 75,210.08 2.4 (959.88) (1.3)Revenue Line 50 13,303.26 1.5 12,875.00 1.6 428.26 3.3 53,207.68 1.6 51,500.00 1.7 1,707.68 3.3 Revenue Line 51 Crest Cru 12,428.36 1.4 12,217.40 1.6 210.96 1.7 24,649.43 0.7 24,434.80 0.8 214.63 0.9 Revenue Line 53 4,289.28 0.5 4,316.30 0.5 (27.02) (0.6) 8,573.28 0.3 8,632.60 0.3 (59.32) (0.7)Revenue Line 55 1,636.10 0.2 1,547.76 0.2 88.34 5.7 4,908.30 0.1 4,422.17 0.1 486.13 11.0 Revenue Line 61 6,433.18 0.7 2,556.05 0.3 3,877.13 151.7 21,505.01 0.6 10,346.49 0.3 11,158.52 107.8 Revenue Line 74 12,474.40 1.4 5,950.36 0.8 6,524.04 109.6 44,369.73 1.3 24,085.64 0.8 20,284.09 84.2 Revenue Line 79 8,588.67 1.0 6,217.73 0.8 2,370.94 38.1 33,023.22 1.0 25,165.76 0.8 7,857.46 31.2 Revenue Line 149/216 24,094.34 2.7 24,591.92 3.1 (497.58) (2.0) 94,969.83 2.8 97,325.38 3.2 (2,355.55) (2.4)Revenue Commuter Line 202 3,730.07 0.4 2,834.00 0.4 896.07 31.6 23,484.05 0.7 19,153.31 0.6 4,330.74 22.6 Revenue Commuter Line 204 7,947.52 0.9 6,145.15 0.8 1,802.37 29.3 30,547.47 0.9 24,870.82 0.8 5,676.65 22.8 Revenue Commuter Line 206 15,810.88 1.8 13,019.04 1.7 2,791.84 21.4 61,807.11 1.8 52,693.22 1.7 9,113.89 17.3 Revenue Commuter Line 208 6,827.02 0.8 4,772.72 0.6 2,054.30 43.0 24,724.32 0.7 19,319.33 0.6 5,404.99 28.0 Revenue Commuter Line 210 4,367.03 0.5 3,643.30 0.5 723.73 19.9 16,631.17 0.5 14,750.11 0.5 1,881.06 12.8 Revenue Commuter Line 212 4,725.89 0.5 3,401.51 0.4 1,324.38 38.9 18,571.76 0.5 13,767.64 0.4 4,804.12 34.9 Revenue Commuter Line 217 4,408.35 0.5 2,834.35 0.4 1,574.00 55.5 16,503.99 0.5 11,473.37 0.4 5,030.62 43.8 Rev DAR Hemet/San Jacinto 19,208.97 2.1 23,192.65 2.9 (3,983.68) (17.2) 82,288.92 2.4 89,770.25 2.9 (7,481.33) (8.3)Rev DAR Jurupa 2,204.56 0.2 3,218.24 0.4 (1,013.68) (31.5) 13,210.27 0.4 12,460.40 0.4 749.87 6.0

RTA Set of Books Date: 09-NOV-11 14:13:32Revenue Budget Variance Report Page: 2




______________ _____ ______________ _____ ______________ ______ ______________ _____ ______________ _____ ______________ ______ Rev DAR Lake Elsinore 3,791.34 0.4 3,247.34 0.4 544.00 16.8 14,930.78 0.4 12,607.93 0.4 2,322.85 18.4 Rev DAR Moreno Valley 19,873.87 2.2 19,922.16 2.5 (48.29) (0.2) 76,947.57 2.3 77,133.62 2.5 (186.05) (0.2)Rev DAR Norco 5,982.54 0.7 7,414.09 0.9 (1,431.55) (19.3) 25,592.22 0.8 28,708.22 0.9 (3,116.00) (10.9)Rev DAR Perris 10,209.25 1.1 10,363.89 1.3 (154.64) (1.5) 39,170.88 1.2 40,130.52 1.3 (959.64) (2.4)

Item 8A 17

Rev DAR Sun City 2,577.47 0.3 4,004.32 0.5 (1,426.85) (35.6) 14,684.91 0.4 15,511.15 0.5 (826.24) (5.3)Rev DAR Banning/Beaumont (1,324.80) (0.1) 438.84 0.1 (1,763.64) -401.9 2,471.66 0.1 1,710.34 0.1 761.32 44.5 Rev DAR Grand Terrace, Hi 2,958.63 0.3 1,530.81 0.2 1,427.82 93.3 8,897.32 0.3 5,930.62 0.2 2,966.70 50.0 Rev DAR Riverside 22,875.97 2.5 23,535.22 3.0 (659.25) (2.8) 87,657.82 2.6 91,090.90 3.0 (3,433.08) (3.8)Rev DAR Murrieta/Temecula 11,121.20 1.2 10,474.88 1.3 646.32 6.2 40,766.15 1.2 40,555.77 1.3 210.38 0.5

-------------- ----- -------------- ----- -------------- ----- -------------- ----- -------------- ----- -------------- -----

Grand Total 898,448.54 100.0 787,844.15 100.0 110,604.39 14.0 3,396,884.06 100.0 3,069,845.03 100.0 327,039.03 10.7

-------------- ----- -------------- ----- -------------- ----- -------------- ----- -------------- ----- -------------- -----Grand Total 898,448.54 n/m 787,844.15 n/m 110,604.39 14.0 3,396,884.06 n/m 3,069,845.03 n/m 327,039.03 10.7

============== ===== ============== ===== ============== ===== ============== ===== ============== ===== ============== =====

Item 8A 18

RIVERSIDE TRANSIT AGENCYREVENUE GRAPHS

October 2011

650,000

750,000

850,000

950,000

Actual Budget

898,449

787,844

Passenger Fares

-

5,000

10,000

15,000

20,000- -

State Operating

2,000,000

3,000,000

4,000,000

Actual Budget

3,148,287 3,148,284

Local Operating

1,000,000

1,250,000

1,500,000

Actual Budget

1,209,790 1,229,867

Federal Operating

Item 8A 19


October 2011

25,000

50,000

75,000

Actual Budget

36,136

59,833

Other Operating

Item 8A 20


October 2011

650,000

700,000

750,000

800,000

850,000

October 2010 October 2011

715,585

801,033

Ridership

Item 8A 21

>

RTA Set of Books Date: 09-NOV-11 14:13:32Operating Expense vs Budget Summary Report Page: 1



<------------------------- Period to Date -----------------------><--------------------------- Year to date -----------------------Actual PCT Budget PCT Variance Var% Actual PCT Budget PCT Variance Var%

-------------- ---- ----------- ----- ------------ ------ -------------- ------ ------------- ------- -------------------Expenses

Salaries Union 822,677.76 20.1 846,704.63 19.5 24,026.87 2.8 3,252,198.48 20.0 3,382,327.72 19.6 130,129.24 3.8 Salaries Admin 376,213.70 9.2 399,660.34 9.2 23,446.64 5.9 1,470,532.80 9.1 1,534,027.36 8.9 63,494.56 4.1 Total Fringe Ben. 727,421.79 17.7 773,120.97 17.8 45,699.18 5.9 3,041,134.57 18.7 3,226,568.51 18.7 185,433.94 5.7

-------------- ----- -------------- ----- -------------- ----- -------------- ----- -------------- ----- -------------- -----Total Salaries & Benefit 1,926,313.25 47.0 2,019,485.94 46.6 93,172.69 4.6 7,763,865.85 47.8 8,142,923.59 47.2 379,057.74 4.7

Purchased Transportation 1,529,266.08 37.3 1,594,619.29 36.8 65,353.21 4.1 6,029,708.89 37.1 6,240,821.95 36.2 211,113.06 3.4

Total Services 142,454.45 3.5 184,016.48 4.2 41,562.03 22.6 615,425.75 3.8 760,423.56 4.4 144,997.81 19.1

Fuel & Lube 128,051.37 3.1 146,260.96 3.4 18,209.59 12.5 519,022.67 3.2 548,757.82 3.2 29,735.15 5.4 Tires & Tubes 0.00 0.0 833.33 0.0 833.33 100.0 2,018.98 0.0 3,333.32 0.0 1,314.34 39.4 Parts 159,577.36 3.9 126,147.40 2.9 (33,429.96) (26.5) 521,621.69 3.2 504,589.60 2.9 (17,032.09) (3.4)Supplies 15,813.29 0.4 20,870.49 0.5 5,057.20 24.2 57,954.58 0.4 86,258.62 0.5 28,304.04 32.8 Other 10,260.94 0.3 14,052.50 0.3 3,791.56 27.0 43,610.55 0.3 57,210.00 0.3 13,599.45 23.8

-------------- ----- -------------- ----- -------------- ----- -------------- ----- -------------- ----- -------------- -----Total Material & Supplie 313,702.96 7.7 308,164.68 7.1 (5,538.28) (1.8) 1,144,228.47 7.0 1,200,149.36 7.0 55,920.89 4.7

Utilities 65,330.00 1.6 55,265.41 1.3 (10,064.59) (18.2) 263,945.71 1.6 258,213.04 1.5 (5,732.67) (2.2)Insurance 36,717.50 0.9 62,403.08 1.4 25,685.58 41.2 169,493.18 1.0 249,612.32 1.4 80,119.14 32.1 Taxes & Permits (294.20) 0.0 2,332.92 0.1 2,627.12 112.6 8,655.41 0.1 16,691.68 0.1 8,036.27 48.1 Advertising & Promoti 16,534.75 0.4 22,350.66 0.5 5,815.91 26.0 44,876.50 0.3 80,920.64 0.5 36,044.14 44.5 Dues & Subscriptions 5,036.11 0.1 7,542.92 0.2 2,506.81 33.2 19,574.60 0.1 30,571.68 0.2 10,997.08 36.0 Training 12,528.20 0.3 22,421.07 0.5 9,892.87 44.1 30,620.50 0.2 87,054.96 0.5 56,434.46 64.8 Interest Expense 0.00 0.0 800.00 0.3 800.00 100.0 552.71 0.1 800.00 0.1 247.29 30.9 Miscellaneous 50,952.13 1.2 58,006.05 1.3 7,053.92 12.2 147,144.31 0.9 179,589.87 1.0 32,445.56 18.1

-------------- ----- -------------- ----- -------------- ----- -------------- ----- -------------- ----- -------------- -----Total Other Expenses 186,804.49 4.6 231,122.11 5.3 44,317.62 19.2 684,862.92 4.2 903,454.19 5.2 218,591.27 24.2

-------------- ----- -------------- ----- -------------- ----- -------------- ----- -------------- ----- -------------- -----Total Expenses 4,098,541.23 100.0 4,337,408.50 100.0 238,867.27 5.5 16,238,091.88 100.0 17,247,772.65 100.0 1,009,680.77 5.9

-------------- ----- -------------- ----- -------------- ----- -------------- ----- -------------- ----- -------------- -----

Net Operating Expenses 4,098,541.23 100.0 4,337,408.50 100.0 238,867.27 5.5 16,238,091.88 100.0 17,247,772.65 100.0 1,009,680.77 5.9 ============== ===== ============== ===== ============== ===== ============== ===== ============== ===== ============== =====

Item 8A 22

RIVERSIDE TRANSIT AGENCYEXPENSE GRAPHS

October 2011

1,500,000

2,000,000

2,500,000

Actual Budget

1,926,313 2,019,486

Salaries & Benefits

125,000

175,000

225,000

Actual Budget

142,454

184,016

Services

1,350,000

1,500,000

1,650,000

Actual Budget

1,529,266 1,594,619

Purchased Transportation

100,000

200,000

300,000

400,000

Actual Budget

313,703 308,165

Materials & Supplies

Item 8A 23

RIVERSIDE TRANSIT AGENCYEXPENSE GRAPHS

October 2011

100,000

200,000

300,000

Actual Budget

186,804

231,122

Other Expenses

Item 8A 24


Riverside, CA 92507

November 17, 2011

TO: BOARD OF DIRECTORS

THRU: Larry Rubio, Chief Executive Officer

FROM: Tom Franklin, Chief Operating Officer

SUBJECT: Ridership for October 2011

Summary: Total system ridership for October 2011 increased 11.94% versus October 2010.

Oct-10 Oct-11 ChangeDirectly Operated 558,494 617,480 10.56%Contract Operated 130,442 151,691 16.29%Dial-A-Ride 26,649 31,862 19.56%Total System 715,585 801,033 11.94%

Ridership

Factors to consider when comparing to a year ago:

• Calendar: This October had the same amount of weekdays, Saturdays, and Sundays as October 2010.

• Weather: This year had two weekdays at 100° or hotter, versus one last year. Measurable rainfall was 0.68 inches, compared to 0.28 inches last year.

• Schedule: There was no significant change in service hours.

• Other: October 2011 was the highest month of Contract-Operated service ridership in agency history.


Item 8B 25

Riverside Transit Agency

Month-End Ridership Summary

October 2011

Total

Passengers

Passengers/

Revenue Hour

Passengers/

Revenue Mile

Directly Operated Route Total >>> 617,480 24.69 1.76 10.56% 6.94%

Contracted Fixed Route Total >>> 151,691 10.86 0.59 16.29% 12.34%

Total Fixed Routes >>> 769,171 19.73 1.27 11.65% 7.94%

*Dial-a-Ride (Regular & Taxi) Total >>> 31,862 2.30 0.12 19.56% 14.69%

Entire System Total >>> 801,033 15.17 0.91 11.94% 8.21%

Total Fixed Routes (excluding Commuter Links) >>> 738,079 20.84 1.45 11.16% 7.43%

Commuter Link Total >>> 31,092 8.74 0.31 24.44% 20.92%

Dial-A-Ride (Regular) Total >>> 31,251 2.32 0.12 19.47% 14.45%

Taxi (Overflow) Total >>> 611 1.56 0.06 24.44% 26.99%

Entire System Total >>> 801,033 15.17 0.91 11.94% 8.21%

Entire System

* The Dial-A-Ride routes serve exclusively seniors and persons with disabilities.

October 2011 Passengers

FY-To-Date Variance

FY2012 vs. FY2011 1

Passengers

Monthly Variance

Oct '11 vs. Oct '10

1 The FY-To-Date Variance is the difference between ridership from July 2011 through October 2011 versus July 2010 through October 2010.

Item 8B 26



October 2011

Total

Passengers

Passengers/

Revenue Hour

Passengers/

Revenue Mile

1 Corona/ Downtown Riverside/ Magnolia/ UCR 164,874 34.50 3.28 6.65% 2.98%

10 Downtown Riverside/ Lincoln/ Galleria at Tyler 23,699 20.74 1.71 16.53% 8.36%

11 Moreno Valley Mall/ March ARB 16,057 19.72 1.61 15.65% 11.99%

12 Pierce and Sterling/ Stephens and Center 25,243 20.31 1.68 6.10% 6.55%

13 Chicago and Marlborough/ Galleria at Tyler 25,779 20.13 1.73 10.09% 6.70%

14 Galleria at Tyler/ Indiana/ VA Hospital 20,905 17.00 1.31 7.69% -4.60%

15 Downtown Riverside/ Galleria at Tyler 40,825 26.47 2.19 6.51% 2.43%

16 Downtown Riverside/ Moreno Valley Mall 58,266 30.09 2.58 15.90% 12.05%

18 Sunnymead Ranch/ Moreno Valley RCC 18,620 23.00 1.74 5.39% 3.72%

19 Moreno Valley Mall/ Perris 44,120 34.78 2.69 10.90% 7.62%

20 Magnolia Center/ Moreno Valley RCC 29,015 21.25 1.35 10.64% 11.52%

21 Country Village/ Galleria at Tyler 12,581 15.85 1.00 13.03% 14.98%

22 Downtown Riverside/ Perris/ Lake Elsinore 40,540 23.09 1.29 11.72% 9.16%

27 Galleria at Tyler/ Hemet Valley Mall 44,217 18.30 0.98 18.55% 12.48%

29 Downtown Riverside/ Hamner & Limonite 14,329 18.65 1.14 28.32% 22.69%

41 2

Mead Valley/ Perris/ Moreno Valley/ RCRMC 5,865 29.71 1.77 18.29% 16.41%

49 Country Village/ Downtown Riverside 19,601 25.57 2.16 9.42% 6.91%

206 Corona/ Lake Elsinore/ Murrieta/ Temecula 5,984 15.44 0.46 2.52% 7.35%

216 Orange County/ Corona/ Riverside 6,960 13.60 0.50 12.57% 10.36%

Directly Operated Route Total >>>> 617,480 24.69 1.76 10.56% 6.94%

Directly Operated Routes

October 2011Route

Number Area Served

Passengers

Monthly Variance

Oct '11 vs. Oct '10

Passengers

FY-To-Date Variance

FY2012 vs. FY2011


2 Route 41 is split between directly operated and contracted fixed route operations. The total passengers shown does not include passengers from contracted operations trips.

Item 8B 27



Total

Passengers

Passengers/

Revenue Hour

Passengers/

Revenue Mile

3 Eastvale/ Norco/ Corona 9,622 12.24 0.88 1.96% -4.05%

7 Lake Elsinore/ Wildomar 11,639 13.87 0.93 20.10% 13.02%

8 Lake Elsinore 11,842 14.10 0.74 16.14% 18.77%

23 Temecula/ Murrieta/ Wildomar 8,080 9.35 0.60 -9.58% -13.82%

24 Pechanga Resort/ Temecula 6,856 8.76 0.58 14.57% 12.91%

30 Perris 7,001 11.23 0.93 1.97% -1.60%

31 Banning/ Beaumont/ San Jacinto/ Hemet 11,324 13.49 0.78 16.25% 13.07%

32 Hemet/ San Jacinto 9,509 14.95 1.32 12.91% 9.82%

33 Hemet/ East Hemet 3,660 9.59 0.70 18.99% 14.35%

35 Banning/ Beaumont/ Moreno Valley Mall 6,377 11.76 0.46 32.77% 18.88%

40 Lake Elsinore/ Quail Valley/ Sun City 2,590 9.80 0.45 42.07% 33.70%

41 2

Mead Valley/ Perris/ Moreno Valley/ RCRMC 4,920 8.52 0.48 19.10% -5.97%

42 Estudillo Express - San Jacinto/ Soboba Casino 4,469 10.04 0.68 23.11% 10.96%

50 Downtown Riverside Jury Trolley - Red Line 342 1.77 0.24 -85.03% -61.44%

51 UCR Crest Cruiser 5,344 21.84 1.92 14.38% 20.50%

53 UCR Bear Runner- After Hours Service 173 1.85 0.12 -29.10% 8.51%

55 Temecula Trolley- Green Line 3,280 26.63 1.92 -0.09% 4.70%

61 Sun City/ Menifee/ Murrieta/ Temecula 6,305 12.44 0.66 36.27% 35.44%

74 San Jacinto/ Hemet/ Menifee/ Sun City/ Perris 12,549 14.91 0.82 28.68% 31.49%

79 Hemet/ Winchester/ French Valley/ Temecula 7,661 8.67 0.49 30.33% 20.29%

202 Murrieta/ Temecula/ Oceanside 1,656 4.19 0.15 31.43% 22.12%

204 Riverside/ Country Village/ Ontario/ Montclair 5,290 12.17 0.47 36.31% 26.38%

208 Temecula/ Murrieta/ Sun City/ Perris/ Moreno Valley/ Riverside 4,369 7.16 0.27 41.57% 32.21%

210 Banning/ Beaumont/ Moreno Valley/ Riverside 1,748 10.06 0.42 32.02% 18.27%

212 Hemet/ San Jacinto/ Downtown Riverside 2,708 5.63 0.22 50.61% 46.26%

217 San Jacinto/ Hemet/ Temecula/ Escondido 2,377 4.22 0.13 47.00% 51.78%

Contracted Fixed Route Total >>>> 151,691 10.86 0.59 16.29% 12.34%

October 2011

Passengers

Monthly Variance

Oct '11 vs. Oct '10

Contracted Fixed Routes

Passengers

FY-To-Date Variance

FY2012 vs. FY2011 1

2 Route 41 is split between directly operated and contracted fixed route operations. The total passengers shown does not include passengers from directly operated trips.

October 2011

Route

Number Area Served


Item 8B 28



October 2011

Dial-a-ride

Passengers

Taxi

Passengers

Total

Passengers

Passengers/

Revenue Hour

Passengers/

Revenue Mile

133 16 149 1.92 0.08 52.04% -1.66%

1,015 61 1,076 1.84 0.09 46.00% 45.82%

429 43 472 1.76 0.08 35.24% -1.56%

6,467 58 6,525 2.75 0.15 19.94% 13.39%

1,025 11 1,036 2.08 0.10 26.34% 18.88%

6,800 127 6,927 2.70 0.15 25.92% 20.59%

3,129 50 3,179 1.93 0.10 20.42% 15.15%

1,886 42 1,928 3.04 0.16 15.38% 13.05%

2,940 55 2,995 2.03 0.09 16.49% 14.03%

6,282 122 6,404 2.11 0.10 12.91% 10.95%

1,145 26 1,171 1.76 0.08 1.83% 0.80%

31,251 611 31,862 2.30 0.12 19.56% 14.69%

Service - Area Served

Passengers

Monthly Variance

Oct '11 vs. Oct '10

Dial-A-Ride Services

Passengers

FY-To-Date Variance

FY2012 vs. FY2011 1

October 2011

Perris - Perris/ Mead Valley/ Nuevo

Riverside - Riverside/ Woodcrest/ Arnold Heights/ Canyon

Crest/Orangecrest

Banning/ Beaumont - Banning/ Beaumont

Highgrove - Highgrove/ Loma Linda

Corona/ Norco - Corona/ Norco

Murrieta/ Temecula - Murrieta/ Temecula

Dial-A-Ride (Seniors & ADA) Total >>>>

Jurupa - Jurupa/ Glen Avon/ Mira Loma/ Pedley/ Rubidoux


Hemet - Hemet/ Homeland/ Romoland/ San Jacinto/ Valle Vista/ Winchester

Moreno Valley - Moreno Valley

Lake Elsinore - Lake Elsinore/ Canyon Lake/ Wildomar / Quail Valley

Sun City - Sun City/ Menifee

Item 8B 29



October 2011

October 2011

Total

Passengers

UCR U-PASS 44,267 16.56% 24.81%

RCC GO-PASS 81,322 6.45% -13.65%

Moreno Valley College and Riverside College enrollment down approx. 8%.

LA SIERRA UNIVERSITY U-PASS 1,315 50.29% 124.86%

CAL BAPTIST UNIVERSITY U-PASS 4,169 75.76% 43.16%

MT. SAN JACINTO COLLEGE GO-PASS 23,016 26.53% 58.70%

Program started August 16, 2010

RIVERSIDE CITY EMPLOYEE PASS PROGRAM 993 17.10% 23.39%

Passengers

FY-To-Date Variance

FY2012 vs. FY2011 1

Pass Programs

Passengers

Monthly Variance

Oct '11 vs. Oct '10Pass Program


Item 8B 30


Riverside, CA 92507

November 17, 2011



FROM: Tom Franklin, Chief Operating Officer

SUBJECT: On Time Performance for October 2011

Summary: On time performance system-wide was 89% in October 2011 versus 89% in October 2010 and 88% in September 2011.


Item 8C 31

RTA BOARD ADMINISTRATION AND OPERATIONS COMMITTEE MEETING November 2, 2011

1. CALL TO ORDER: Committee Chairman Doug McAllister called the Board Administration and

Operations Committee meeting to order at 1:00 p.m., on November 2, 2011, in the RTA Board Room.

2. SELF-INTRODUCTIONS: Self introductions of those in attendance took place.

Attendees:

1. Committee Chairman Doug McAllister, City of Murrieta 2. Chairman Bob Buster, County of Riverside, District I 3. Director Jesse Molina, City of Moreno Valley Mayor Pro Tem 4. Director Jeff Fox, City of Beaumont Councilmember 5. Director Ella Zanowic, City of Calimesa Mayor 6. Director Daryl Hickman, City of Lake Elsinore Councilmember 7. Director Ike Bootsma, City of Eastvale Councilmember 8. Director Don Robinson, City of Banning Councilmember

RTA Staff: 1. Larry Rubio, Chief Executive Officer 2. Tom Franklin, Chief Operating Officer 3. Craig Fajnor, Chief Financial Officer 4. Vince Rouzaud, Chief Procurement and Logistics Officer 5. Rick Kaczerowski, Director of Information Technologies 6. Jim Kneepkens, Director of Marketing 7. Lorelle Moe, Interim Director of Planning 8. Bob Bach, Director of Maintenance 9. Laura Murillo, Director of Human Resources

10. Natalie Gomez, Clerk of the Board of Directors 11. Eric Ustation, Government Affairs Representative 12. Natalie Zaragoza, Contracts Manager 13. Virginia Werly, Contract Operations Manager 14. Gordon Robinson, Director of Planning

Other Attendees: Dennis Longdyke, Banning resident.

3. PUBLIC COMMENTS – NON-AGENDA ITEMS: None. 4. APPROVAL OF MINUTES – September 7, 2011, COMMITTEE MEETING:

M/S/C (FOX/BOOTSMA) approving the minutes of September 7, 2011, Committee meeting. The motion carried unanimously.

Item 8D 32

5. CONSENT CALENDAR: M/S/C (HICKMAN/BOOTSMA) approving the receipt and file of item A –

Transportation Center Monthly Report – August and September 2011. The motion carried unanimously.

M/S/C (HICKMAN/BOOTSMA) approving the receipt and file of item B – Personnel Report – August and September 2011. The motion carried unanimously.

6. AUTHORIZATION TO DONATE ONE (1) SURPLUS TROLLEY VEHICLE TO THE RAMONA BOWL AMPHITHEATRE

M/S/C (HICKMAN/BOOTSMA) approving and recommending this item to the full Board of

Directors for their consideration as follows:

• Authorize staff to donate one (1) surplus trolley vehicle to the Ramona Bowl Amphitheatre.

The motion carried unanimously. 7. AUTHORIZATION TO PURSUE MEDI-CAL REIMBURSEMENT FOR TRANSPORTATION

SERVICES ASSOCIATED WITH MEDI-CAL COVERED SERVICES Director Zanowic arrived at the meeting during discussion of Item 7. M/S/C (MOLINA/ZANOWIC) approving and recommending this item to the full Board of


• Authorize staff to pursue reimbursement opportunities for

transportation services provided to Medi-Cal recipients for Medi-Cal covered services.

• Authorize staff to work with the consultant representing the Riverside

County Department of Health Services on a Memorandum of Agreement for the Agency’s participation in a Medi-Cal reimbursement program.

• Direct staff to return to the Board with a report detailing staff’s

findings.


Item 8D 33

8. ADJUSTMENT OF LEGAL FEES M/S/C (BUSTER/HICKMAN) approving and recommending this item to the full Board of


• Approve an increase of $15 per hour (to $230 per-hour) as the basis for legal fees paid to Woodruff, Spradlin, & Smart effective December 1, 2011.

The motion carried unanimously. 9. OTHER BUSINESS:

Director Robinson requested more information on the grant RTA recently received. Mr.

Rubio stated RTA will receive $5.6 million in Proposition 1B money for the 40-foot heavy duty bus replacement project.

Director Robinson announced RTA staff would be meeting with him and Director Fox for an

overview of the Pass Transit system on November 4 at Beaumont City Hall at 9 a.m. The city of Banning and the City of Beaumont are working together to provide one transit system. Director Robinson appreciated all the guidance and assistance he has received from RTA. Director Fox thanked Mr. Franklin for all the work he has done.

Mr. Kneepkens announced the T-NOW annual luncheon would be held on November 3 at

the UCR Alumni Center. Lunch starts at 11:30 a.m. and the program starts at noon.

10. NEXT MEETING:

Board Administration and Operations Committee Meeting Wednesday, December 7, 2011 1:00 p.m. RTA Headquarters 1825 Third Street Riverside, CA 92507 11. ADJOURNMENT: The meeting was adjourned at 1:32 p.m.

Item 8D 34

RTA BOARD BUDGET AND FINANCE COMMITTEE MEETING November 2, 2011

1. CALL TO ORDER: Committee Chairman Ashley called the Board Budget and Finance Committee meeting to order at 2:00 p.m., on November 2, 2011, in the RTA Board Room.

2. SELF-INTRODUCTIONS: Self-introductions of those in attendance took place. Board Committee Members Present: 1. Committee Chairman Marion Ashley, County of Riverside, District V 2. Director Barry Talbot, City of Canyon Lake, Mayor 3. Director Andy Melendrez, City of Riverside, Councilmember 4. Director Wallace Edgerton, City of Menifee, Mayor 5. Alternate Andrea Puga, County of Riverside, District II 6. Alternate Ron Roberts, County of Riverside, District III

RTA Staff: 1. Larry Rubio, Chief Executive Officer 2. Tom Franklin, Chief Operating Officer 3. Craig Fajnor, Chief Financial Officer 4. Vince Rouzaud, Chief Procurement and Logistics Officer 5. Jim Kneepkens, Director of Marketing 6. Brad Weaver, Marketing Manager 7. Lorelle Moe Luna, Senior Planner 8. Laura Murillo, Director of Human Resources 9. Natalie Gomez, Clerk of the Board

10. Virginia Werly, Contract Operations Manager 11. Gordon Robinson, Director of Planning 12. Charlie Ramirez, Controller 13. Natalie Zaragoza, Contracts Manager 14. Eric Ustation, Government Affairs Representative

Other Attendees: Steve Starbuck, Brown Armstrong, CPA

3. PUBLIC COMMENTS - NON-AGENDA ITEMS:

None.

4. APPROVAL OF MINUTES OCTOBER 5, 2011, COMMITTEE MEETING: M/S/C (ROBERTS/TALBOT) approving the October 5, 2011, Committee meeting

minutes.


Item 8E 35

5. QUARTERLY INVESTMENT REPORT: Mr. Fajnor presented the Quarterly Investment report. 6. CASH FLOW PROJECTIONS:

Mr. Fajnor presented the Cash Flow projections.

7. AUTHORIZATION TO AWARD AGREEMENT NO. 11-046 TO HARBOR DIESEL

INDUSTRIES (HDI) FOR TRANSMISSION REBUILDING SERVICES: M/S/C (TALBOT/MELENDREZ) approving and recommending this item to the full

Board of Directors for their consideration as follows:

• Authorize staff to award Agreement No. 11-046 to Harbor Diesel Industries in the amount of $200,313 for transmission rebuilding services.

The motion carried unanimously. 8. FISCAL YEAR 2010/2011 (FY11) FINANCIAL AUDIT RESULTS:

Mr. Fajnor introduced Mr. Steve Starbuck from Brown Armstrong to present the Agency’s annual financial audit results. Mr. Starbuck presented a summary of the audit results and reported that the Agency received a clean opinion. Mr. Rubio commended Mr. Fajnor and Mr. Ramirez for a job well done.

M/S/C (PUGA/MELENDREZ) approving and recommending this item to the full Board

of Directors for their consideration as follows:

• Accept the Riverside Transit Agency’s FY11 Audited Financial Statements and Single Audit Reports as submitted as final documents.


Item 8E 36

9. BOARD MEMBER COMMENTS AND REMARKS: Alternate Puga announced that it was fire season and there was a fire in Jurupa

Valley today. Director Melendrez announced a celebration honoring the Tuskegee Airmen on

Saturday, November 6 at 2 pm. at UCR. There will also be a Día de los Muertos (Day of the Dead Celebration) on November 2, from 6 – 9 pm. in downtown Riverside.

10. OTHER BUSINESS: None. 11. NEXT MEETING: Board Budget and Finance Committee Meeting Wednesday, December 7, 2011 2:00 p.m. RTA Headquarters 1825 Third Street Riverside, CA 92507 12. ADJOURN: The meeting adjourned at 2:41 p.m.

Item 8E 37


Riverside, CA 92507

November 17, 2011

TO: BOARD OF DIRECTORS THRU: Larry Rubio, Chief Executive Officer FROM: Craig Fajnor, Chief Financial Officer SUBJECT: October 2011 Productivity Improvement Program (PIP) Results Summary: The Agency is required to achieve or exceed the mandatory

Farebox Recovery Ratio target of 17.04% at the system-wide level for FY12. In addition, the Agency must achieve compliance with four (4) of the remaining seven (7) discretionary PIP metrics at the system-wide level. The attached report presents PIP performance at the route, service segment, and system-wide levels for year-to-date October 2011. The Agency achieved or exceeded all eight PIP targets at the system-wide level. In particular, actual system-wide farebox recovery through October is 29.15%, exceeding the target by 12.11%.


Item 8F 38

PIP Performance Summary Shaded area indicates PIP target NOT met.FY2012 Year to DateOctober 2011

80.73$ 17.04% 5.09$ 0.77$ 68.09$ 4.01$ 11.39 0.67

Route Cost Per RSHFarebox

Recovery RatioSubsidy PerPassenger

Subsidy PerPassenger Mile

Subsidy PerRSH

Subsidy PerRSM

Passengers Per

RSHPassengers Per

RSMDO Fixed Route

1 97.67$ * 2.15$ 0.46$ 66.95$ 6.27$ 31.11 2.91 10 97.69$ * 4.42$ 0.94$ 79.84$ 6.61$ 18.08 1.50 11 97.67$ * 4.17$ 0.89$ 78.62$ 6.41$ 18.86 1.54 12 97.69$ * 4.07$ 0.87$ 79.12$ 6.57$ 19.45 1.61 13 97.68$ * 4.23$ 0.90$ 79.82$ 6.77$ 18.85 1.60 14 97.68$ * 4.89$ 1.04$ 81.27$ 6.28$ 16.61 1.28 15 97.66$ * 3.10$ 0.66$ 74.47$ 6.15$ 24.02 1.98 16 97.67$ * 2.84$ 0.60$ 73.13$ 6.27$ 25.72 2.20 18 97.69$ * 3.72$ 0.79$ 77.92$ 5.75$ 20.95 1.55 19 97.67$ * 1.99$ 0.42$ 64.64$ 5.00$ 32.56 2.52 20 97.66$ * 3.84$ 0.82$ 78.63$ 5.02$ 20.46 1.31 21 97.68$ * 5.18$ 1.10$ 81.17$ 5.15$ 15.66 0.99 22 97.65$ * 3.58$ 0.27$ 76.13$ 4.24$ 21.27 1.18 27 97.74$ * 4.32$ 0.32$ 78.73$ 3.96$ 18.20 0.92 29 97.68$ * 4.78$ 1.02$ 81.09$ 4.96$ 16.96 1.04 49 97.68$ * 2.97$ 0.63$ 73.03$ 6.16$ 24.56 2.07

206 97.64$ * 3.83$ 0.29$ 57.75$ 1.74$ 15.06 0.45 216 97.67$ * 3.97$ 0.29$ 50.79$ 1.89$ 12.79 0.48

DOFR Subtotal 97.68$ * 3.25$ 0.53$ 74.09$ 5.24$ 22.80 1.61

PIP Target

Item 8F 39


80.73$ 17.04% 5.09$ 0.77$ 68.09$ 4.01$ 11.39 0.67




Subsidy PerRSH

Subsidy PerRSM

Passengers Per

RSHPassengers Per

RSM

PIP Target

Contracted Fixed Route3 62.43$ * 5.20$ 0.74$ 51.97$ 3.73$ 10.00 0.72

7 1 62.94$ * 3.50$ 0.51$ 45.68$ 3.06$ 13.04 0.87 8 1 62.77$ * 3.08$ 0.45$ 42.80$ 2.24$ 13.90 0.73 23 62.36$ * 6.14$ 0.89$ 52.82$ 3.33$ 8.60 0.54 24 62.01$ * 6.25$ 0.91$ 52.87$ 3.49$ 8.46 0.56 30 62.83$ * 4.90$ 0.72$ 52.40$ 4.33$ 10.69 0.88 31 62.82$ * 3.61$ 0.52$ 49.13$ 2.82$ 13.62 0.78 32 62.44$ * 3.24$ 0.47$ 48.02$ 4.11$ 14.84 1.27 33 62.49$ * 6.30$ 0.90$ 54.35$ 3.95$ 8.62 0.63 35 62.93$ * 4.86$ 0.69$ 51.85$ 2.04$ 10.67 0.42 40 61.88$ * 6.36$ 0.91$ 52.69$ 2.40$ 8.28 0.38

41C 1 62.92$ * 7.56$ 1.09$ 52.79$ 3.02$ 6.98 0.40 41D 1 97.62$ * 3.45$ 0.73$ 75.88$ 4.53$ 22.01 1.31 41 1 72.03$ * 5.38$ 0.94$ 58.85$ 3.40$ 10.93 0.63 42 63.33$ * 5.59$ 0.82$ 54.25$ 3.73$ 9.70 0.67 50 61.41$ * (1.38)$ (0.20)$ (5.24)$ (0.77)$ 3.79 0.56 55 59.04$ * 1.55$ 0.22$ 44.97$ 3.29$ 29.01 2.12 61 62.59$ * 5.14$ 0.73$ 52.06$ 2.77$ 10.12 0.54

74 1 62.88$ * 2.95$ 0.42$ 38.56$ 2.11$ 13.09 0.72 79 1 62.95$ * 5.53$ 0.79$ 46.14$ 2.62$ 8.34 0.47 202 62.61$ * 11.83$ 0.59$ 52.32$ 2.00$ 4.42 0.17 204 62.40$ * 4.47$ 0.30$ 44.97$ 1.77$ 10.05 0.40 208 62.39$ * 8.57$ 0.57$ 51.94$ 1.96$ 6.06 0.23 210 72.00$ * 5.45$ 0.36$ 48.34$ 2.01$ 8.87 0.37 212 62.15$ * 3.44$ 0.23$ 17.49$ 0.70$ 5.08 0.20 217 62.29$ * 7.04$ 0.28$ 27.48$ 0.87$ 3.90 0.12 794 -$ * -$ -$ -$ -$ - -

COFR Subtotal 63.47$ * 4.66$ 0.57$ 45.74$ 2.47$ 9.81 0.53

Total Fixed Route 85.46$ * 3.52$ 0.54$ 63.97$ 4.07$ 18.16 1.16

Item 8F 40


80.73$ 17.04% 5.09$ 0.77$ 68.09$ 4.01$ 11.39 0.67




Subsidy PerRSH

Subsidy PerRSM

Passengers Per

RSHPassengers Per

RSM

PIP Target

Dial-A-Ride (w/o Taxi)Banning/Beaumont DAR 60.45$ * 31.56$ 2.67$ 50.82$ 2.01$ 1.61 0.06 Lake Elsinore DAR 60.25$ * 29.55$ 2.50$ 54.01$ 2.60$ 1.83 0.09 Grand Terrace DAR 60.28$ * 30.36$ 2.57$ 51.75$ 2.38$ 1.70 0.08 Hemet DAR 60.24$ * 17.55$ 1.49$ 50.86$ 2.81$ 2.90 0.16 Jurupa DAR 60.26$ * 27.04$ 2.29$ 53.59$ 2.70$ 1.98 0.10 Moreno Valley DAR 60.26$ * 19.52$ 1.65$ 52.39$ 2.91$ 2.68 0.15 Murrieta/Temecula DAR 60.26$ * 27.08$ 2.30$ 53.92$ 2.74$ 1.99 0.10 Norco DAR 60.23$ * 16.92$ 1.43$ 49.78$ 2.55$ 2.94 0.15 Perris DAR 60.24$ * 25.99$ 2.20$ 53.40$ 2.41$ 2.05 0.09 Riverside DAR 60.27$ * 24.85$ 2.11$ 52.97$ 2.54$ 2.13 0.10 Sun City DAR 60.22$ * 29.80$ 2.53$ 54.50$ 2.58$ 1.83 0.09

Subtotal 60.26$ * 22.59$ 1.91$ 52.63$ 2.66$ 2.33 0.12

TaxiBanning/Beaumont Taxi 88.33$ * 61.84$ 5.24$ 80.63$ 2.75$ 1.30 0.04 Lake Elsinore Taxi 71.11$ * 43.82$ 3.71$ 62.05$ 2.69$ 1.42 0.06 Grand Terrace Taxi 87.28$ * 47.11$ 3.99$ 78.34$ 2.77$ 1.66 0.06 Hemet Taxi 77.76$ * 48.52$ 4.11$ 71.82$ 2.84$ 1.48 0.06 Jurupa Taxi 84.32$ * 36.91$ 3.13$ 73.24$ 2.61$ 1.98 0.07 Moreno Valley Taxi 88.20$ * 55.47$ 4.70$ 80.53$ 2.86$ 1.45 0.05 Murrieta/Temecula Taxi 93.63$ * 58.35$ 4.94$ 85.11$ 2.73$ 1.46 0.05 Norco Taxi 101.97$ * 37.25$ 3.16$ 91.68$ 2.66$ 2.46 0.07 Perris Taxi 79.56$ * 45.52$ 3.86$ 72.41$ 2.78$ 1.59 0.06 Riverside Taxi 84.15$ * 39.59$ 3.36$ 77.11$ 2.80$ 1.95 0.07 Sun City Taxi 90.41$ * 48.76$ 4.13$ 83.77$ 2.78$ 1.72 0.06

Subtotal 84.36$ * 47.60$ 4.03$ 76.65$ 2.78$ 1.61 0.06

Total DAR/Taxi 61.00$ * 23.13$ 1.96$ 53.37$ 2.66$ 2.31 0.12

Systemwide (Full Up) 79.11$ 29.15% 3.99$ 0.59$ 56.05$ 3.33$ 14.04 0.83

* Transportation Development Act (TDA) and Riverside County Transportation Commission (RCTC) allow for certain revenues to be both included and excluded from farebox recovery ratio calculation. TDA allows for certain expenses to be excluded from farebox recovery ratio calculation. These inclusions and exclusions make route level analysis misleading and thus are only meaningful at the systemwide level.

Item 8F 41

Performance Improvement Plan Definitions Passengers or Unlinked Passenger Trips

The number of passengers who board buses. Passengers are counted each time they board the bus.

Revenue Service Hours (RSH)

The hours that vehicles travel while in revenue service. Revenue service hours include layover/recovery time but exclude deadhead, training operators prior to revenue service and road tests.

Revenue Service Miles (RSM)

The miles that vehicles travel while in revenue service. Revenue service miles exclude deadhead, training operators prior to revenue service and road tests.

Passenger Miles

The total number of miles traveled by transit passengers. For example, a bus that carries 5 passengers for a distance of 3 miles incurs 15 passenger miles.

Operating Costs or Expenses

All operating costs excluding depreciation, amortization, and capital expenditures. Fare Revenue

All revenues received in the following classifications – passenger fares for transit service and special transit fares. Fare revenues includes revenues earned under contractual agreements with public or private entities, either (1) for transit fares for a specified group of employees, members or clients, or (2) to guarantee a minimum revenue on a line operated especially for the benefit of the paying entity (e.g. an employer, shopping center, university, etc.). In addition to farebox cash and coin and passes, this area includes, but is not limited to, U-Pass agreements, the Measure A subsidy for OCTA Route 794, and OCTA’s subsidy of RTA Route 216.

Other Local Revenue

All revenues received in the following classificatons – auxiliary transportation revenues, taxes levied directly by transit system, local cash grants & reimbursements – General Operating Assistance, local special fare assistance, and subsidy from other sectors of operation (e.g. lease, advertising, and interest income). This area also includes the Federal Excise Tax Credit for Alternative Fuel (CNG) Use and reimbursements from the California Employers Retiree Benefit Trust (CERBT) for retiree medical.

Item 8F 42

Subsidy

Subsidy = (Operating Costs – Fare Revenue) In calculating PIP indicators, Other Local Revenue is not factored into the Subsidy.

PIP Indicators Mandatory Indicator: Farebox Recovery Ratio

Farebox Recovery Ratio =Net Revenue (Fare Revenue + Other Local Revenue) ÷ Net Operating Costs Farebox Recovery target is a “blended ratio” based on the mix of urban and rural service areas with urban areas having a target of 20% and rural areas a target of 10%. Farebox Recovery Ratio allows for both inclusions and exclusions of certain revenues and expenses, and is influenced by the containment of operating costs and the generation of revenues through passenger fares, advertising, interest income, etc.

Farebox Recovery Ratio Inclusions In addition to cash and coin collected in the fareboxes, other local revenues can be included in the “fare revenue” numerator of the farebox recovery equation.

Farebox Recovery Ratio Exemptions

The TDA allows exemptions to the farebox recovery requirements for new routes, new route extensions, newly urbanized areas, and in the case of work stoppages. Routes may be excluded if the extension of services has been in operation for less than two full fiscal years. The two year extension of services applies until two years after the end of the fiscal year in which the extension of services was put into operation. If a route is exempted, both its revenue and costs are exempted from the farebox recovery calculation. AB813 Exemptions ADA (DAR/Taxi) operating costs above CPI growth over prior year may be excluded when calculating farebox recovery ratio.

Discretionary Indicators (4 of 7 required): Cost Per Revenue Service Hour (RSH)

Cost Per RSH = Operating Costs ÷ RSH Target is established based on prior fiscal year through third quarter Cost Per RSH plus CPI growth. Cost Per RSH is influenced by CPI growth and other cost drivers above CPI and service changes. Costs for GASB 45 compliance above the Annual Required Contribution (ARC) are excluded from the operating expenses for purposes of calculating this value.

Item 8F 43

Subsidy Per Passenger

Subsidy Per Passenger = (Operating Costs – Fare Revenue) ÷ Passengers Target is established based on prior fiscal year through third quarter Subsidy Per Passenger ± 15%. Subsidy Per Passenger is positively influenced by increasing passengers while incurring incremental operating cost below the average and/or increasing fare revenue without degradation of ridership. Costs for GASB 45 compliance above the Annual Required Contribution (ARC) are excluded from the operating expenses for purposes of calculating this value.

Subsidy Per Passenger Mile Subsidy Per Passenger Mile = (Operating Costs – Fare Revenue) ÷ Passenger Miles Target is established based on prior fiscal year through third quarter Subsidy Per Passenger Mile ± 15%. Subsidy Per Passenger Mile is positively influenced by higher revenue and/or lower costs. Costs for GASB 45 compliance above the Annual Required Contribution (ARC) are excluded from the operating expenses for purposes of calculating this value.

Subsidy Per Revenue Service Hour (RSH) Subsidy Per RSH = (Operating Costs – Fare Revenue) ÷ RSH Target is established based on prior fiscal year through third quarter Subsidy Per RSH ± 15%. Subsidy Per RSH is positively influenced by cost containment while increasing passenger fare revenue and/or productive service growth with below average incremental cost. Costs for GASB 45 compliance above the Annual Required Contribution (ARC) are excluded from the operating expenses for purposes of calculating this value.

Subsidy Per Revenue Service Mile (RSM) Subsidy Per RSM = (Operating Costs – Fare Revenue) ÷ RSM Target is established based on prior fiscal year through third quarter Subsidy Per RSM ± 15%. Subsidy Per RSM is positively influenced by cost containment and/or increasing fare revenue. Costs for GASB 45 compliance above the Annual Required Contribution (ARC) are excluded from the operating expenses for purposes of calculating this value.

Passenger Per Revenue Service Hour (RSH)

Passenger Per RSH = Passengers ÷ RSH Target is established based on prior fiscal year through third quarter Passenger Per RSH ± 15%. Passenger Per RSH is positively influenced by an increase in ridership and/or a reduction of under utilized routes.

Passenger Per Revenue Service Mile (RSM)

Passenger Per RSM = Passengers ÷ RSM

Item 8F 44

Target is established based on prior fiscal year through third quarter Passenger Per RSM ± 15%. Passenger Per RSM is positively influenced by an increase in ridership and/or a reduction of under utilized routes.

Item 8F 45

Item 8G 46

Item 8G 47


Riverside, CA 92507

November 17, 2011 TO: BOARD OF DIRECTORS THRU: Larry Rubio, Chief Executive Officer FROM: Vince Rouzaud, Chief Procurement and Logistics Officer SUBJECT: Authorization to Award Agreement No. 11-046 to Harbor Diesel Industries (HDI)

for Transmission Rebuilding Services Summary: The Agency‘s fleet of 40-foot compressed natural gas (CNG) buses have been

in revenue service for over 10 years and have accumulated a fleet- mileage average in excess of 480,000 miles. The Federal Transit Administration (FTA) defines the useful service life of a 40-foot heavy duty transit bus as 12-years or 500,000 miles.

Staff is currently in the process of procuring new buses to replace this aging

fleet: however, delivery of new buses will not begin until FY13 at the earliest with the last of the buses scheduled for delivery in FY16.

In order to maintain the vehicles in service until replacement buses are

delivered, major components such as engines and transmissions will need rebuilding or replacement. Rebuilding or replacing major components extends the vehicle’s service life, improves performance and increases reliability.

During the next 12-months, staff estimates that up to 15 buses may require

transmission rebuilding services to minimize mechanical failures and ensure safe and reliable operations.

On August 18, 2011 the Agency issued Invitation for Bid (IFB) No.11-046 for Transmission Rebuilding Services. The IFB was publicly advertised in a newspaper of general circulation and a notice was posted on the Agency’s website along with a copy of the IFB document. The Agency also sent notices to the Chambers’ of Commerce for those cities that are members of the Joint Powers Agreement (JPA) for distribution to their membership. On September 8, 2011 the Agency received a single bid from Harbor Diesel Industries, Inc. (HDI):

Vendor Per Transmission Cost Extended Amount

HD Industries, Long Beach, CA 13,354.20$ 200,313.00$

Item 8H 48

HDI, located in Long Beach, CA, is the closest authorized service center for ZF transmissions. For on-road heavy duty vehicles, there are only three transmission manufacturers within the United States: ZF Industries, Voith and Allison. As originally purchased, the Agency’s 40-foot vehicles came equipped with the ZF transmission. ZF Industries have seven authorized service centers within the United States and another three in Canada. The Agency is conveniently located near HDI, the ZF authorized service center for the Southwest Region. While staff issued IFB No.11-046 and made several phone calls to encourage independent repair centers to submit bids, independent repair centers confirmed they cannot procure authorized ZF replacement parts at competitive pricing. Since a single bid was received, staff conducted a price analysis to ensure the pricing offered by HDI was fair and reasonable. Allison and Voith Transmissions provided pricing for the re-building of their transmissions. This information supports staff’s determination that the pricing provided by HDI is fair and reasonable. Staff then reviewed HDI’s submittal to ensure documentation of responsiveness and financial responsibility. HDI’s submittal conforms with all the material terms and conditions required by the Agency. Staff recommends award to HDI.

Fiscal Impact:

This project is funded with FTA Section 5307 and State Transit Assistance funds.

Committee Recommendation:

This item was discussed at the Board Budget and Finance Committee meeting of November 2, 2011. The committee members voted unanimously to recommend this item to the full Board of Directors for their consideration.

Recommendation:

Approve and recommend this item to the full Board of Directors for their consideration as follows:

• Authorize staff to award Agreement No. 11-046 to Harbor Diesel Industries in the amount of $200,313 for transmission rebuilding services.

Item 8H 49

RIVERSIDE TRANSIT AGENCY 1825 Third Street Riverside, CA 92507 November 17, 2011 TO: BOARD OF DIRECTORS THRU: Larry Rubio, Chief Executive Officer FROM: Vince Rouzaud, Chief Procurement and Logistics Officer SUBJECT: Adjustment of Legal Fees Summary: The attached letter was received from Agency General Counsel Kennard

R. Smart Jr., requesting an adjustment to legal fees from the law firm of Woodruff, Spradlin & Smart. The adjustment calls for an increase in fees from $215 per-hour to $230 per-hour.

A review of hourly legal fees paid by other public transportation agencies in the region are listed below:

Orange County Transportation Authority $257 Riverside County Transportation Commission $260

Expenditures for legal services to Woodruff, Spradlin & Smart have averaged approximately $100,000 for each of the past two fiscal years. Based on the above information, staff believes the proposed increase in legal fees to be fair and reasonable.

Fiscal Impact: There are sufficient funds in the current fiscal year operating budget to

accommodate this increase. Recommendation:

Approve and recommend this item to the full Board of Directors for their consideration as follows:

• Approve an increase of $15 per hour (to $230 per-hour) as the basis for legal fees paid to Woodruff, Spradlin, & Smart effective December 1, 2011.

Item 8I 50


Riverside, CA 92507

November 17, 2011 TO: BOARD OF DIRECTORS THRU: Larry Rubio, Chief Executive Officer FROM: Craig Fajnor, Chief Financial Officer SUBJECT: Fiscal Year 2010/2011 (FY11) Financial Audit Results Summary: The accounting firm of Brown Armstrong performed the Agency’s

FY11 financial audit. Attached for review and approval are the Basic Financial Statements and Single Audit Report for the year ended June 30, 2011. The FY11 annual audit yielded the following results:

• The Agency received an unqualified opinion, which means that

the Agency’s accounting and financial reporting were consistent with Generally Accepted Accounting Principles (GAAP)

• The auditors noted no reportable conditions relating to instances

of disagreements with management, as well as no material errors, irregularities, or possible illegal acts

• The auditors noted no matters involving the Agency’s internal

control over financial reporting and its operations that were considered significant deficiencies or material weaknesses

• The Agency was in compliance with Public Utilities Code

Section 99270.1 – Compliance with required farebox ratio. The predetermined minimum farebox ratio for fiscal year 2010/2011 is 17.09 percent. The actual farebox ratio achieved is 27.52 percent, resulting in a favorable variance of 10.43 percent.


This item was discussed at the Board Budget and Finance Committee meeting on November 2, 2011. The committee members unanimously approved and recommended this item to the full Board of Directors for their consideration.

Item 9 51

Recommendation:

Accept the Riverside Transit Agency’s FY11 Audited Financial Statements and Single Audit Reports as submitted as final documents.

Item 9 52

RIVERSIDE TRANSIT AGENCY RIVERSIDE, CALIFORNIA

BASIC FINANCIAL STATEMENTS

WITH INDEPENDENT AUDITOR’S REPORT

JUNE 30, 2011 AND 2010

Item 9 53

RIVERSIDE TRANSIT AGENCY RIVERSIDE, CALIFORNIA JUNE 30, 2011 AND 2010

TABLE OF CONTENTS

Page

Independent Auditor’s Report ............................................................................................................ 1 Management’s Discussion and Analysis ............................................................................................ 3 Basic Financial Statements: Statements of Net Assets ............................................................................................................ 10 Statements of Activities and Changes in Net Assets .................................................................. 11 Statements of Cash Flows ........................................................................................................... 12 Notes to the Basic Financial Statements ..................................................................................... 14 Required Supplementary Information – Public Employees’ Retirement System (PERS) Schedule of Funding Progress ............................. 35 Required Supplementary Information – Schedule of Funding Progress – Other Postemployment Benefits ................................................. 36 Independent Auditor’s Report on Compliance Over Financial Reporting Based on an Audit of Financial Statements Performed in Accordance with the Statutes, Rules, and Regulations of the California Transportation Development Act and the Allocation Instructions and Resolutions of the Transportation Commission .................................... 37

Item 9 54

1

INDEPENDENT AUDITOR’S REPORT

To the Board of Directors of the Riverside Transit Agency Riverside, California We have audited the accompanying financial statements of the Riverside Transit Agency (RTA) as of and for the years ended June 30, 2011 and 2010, which collectively comprise RTA’s basic financial statements as listed in the table of contents. These financial statements are the responsibility of RTA’s management. 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 audits to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinions. In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of RTA as of June 30, 2011 and 2010, and the respective changes in financial position and cash flows for the years then ended in conformity with accounting principles generally accepted in the United States of America. In accordance with Government Auditing Standards, we have also issued our report dated October 27, 2011, on our consideration of RTA’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 and should be considered in assessing the results of our audit.

Item 9 55

2

Accounting principles generally accepted in the United States of America require that the management’s discussion and analysis and other postemployment benefit (OPEB) and pension plans on pages 3 through 9 and pages 35 and 36 be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. BROWN ARMSTRONG ACCOUNTANCY CORPORATION Bakersfield, California October 27, 2011

Item 9 56

3

RIVERSIDE TRANSIT AGENCY MANAGEMENT’S DISCUSSION AND ANALYSIS

JUNE 30, 2011

As management of the Riverside Transit Agency (RTA), we offer readers of the RTA’s basic financial statements this narrative overview and analysis of the financial activities of the RTA for the year ended June 30, 2011. FINANCIAL HIGHLIGHTS

The assets of the RTA exceeded its liabilities at the close of the year ended June 30, 2011, by $29,956,336 (net assets). Of this amount, $22,130,597 consisted of Net Assets Invested in Capital Assets, Net of Related Debt; Restricted Net Assets of $1,907,694; and Unrestricted Net Assets of $5,918,045.

Farebox revenues increased 1% over the year ended June 30, 2010, to $9,410,428, which was largely a result of a 2% increase in overall system-wide ridership. The system-wide ridership increase was attributable to the continued expansion of discounted programs to local colleges and universities. Dial-A-Ride demand was less than anticipated due to the service area policy changes directed by the Board.

RTA received other revenue of $1,375,778 in the form of an Excise Tax Credit for Alternative Fuel Use. The revenue stream, by legislation, which originally ended in December 2009, was extended through December 2011 and is retroactive back to January 2010.

Operating expenses (excluding depreciation, interest, and pass-through grants) decreased 4 percent to $45,603,600. RTA continued its funding effort on its other postemployment benefits (OPEB) obligation. Further, in response to constrained economic conditions, management sought and received continuation of certain Board-approved cost reduction concessions from administrative employees. The Board also approved minor service modifications that continued the reduction of underperforming service in order to trim expenses.

RTA’s Capital Assets (after the application of accumulated depreciation) decreased $3,443,233. This decrease includes Capital Assets additions of $6,372,172, offset by retirements of $1,192,317, and an increase in accumulated depreciation of $8,623,088. All capital assets procurements are funded by a mix of federal, state, and local grants. Procurements included non-revenue support vehicles, computer and software improvements, and rolling stock replacement parts.

Completion of the Corona Transit Center, which allows the RTA to provide a more efficient service by connecting various RTA routes to each other as well as to various other modes of public transportation.

Reduced $1,755,000 of Debt Service principal on the Demand Bond refinance program that was executed in February 2003.

Establishment of a second interest bearing account with the Riverside County Treasurer to improve interest income.

OVERVIEW OF THE FINANCIAL STATEMENTS This discussion and analysis is intended to serve as an introduction to the RTA’s basic financial statements. The RTA accounts for expenses in only one fund (Enterprise Fund); therefore, the basic financial statements do not reflect the activities of multiple funds. RTA’s basic financial statements consist of the Statement of Net Assets, Statement of Activities and Changes in Net Assets, and Statement of Cash Flows. The Statement of Net Assets presents information on all of the RTA’s assets and liabilities, with the difference between the two reported as Net Assets. Over time, increases or decreases in net assets may serve as a useful indicator of the RTA’s financial position.

Item 9 57

4

The Statement of Activities and Changes in Net Assets provides information regarding the revenues generated and received (passenger fares and grants) and the expenses incurred in which to generate those revenues. The difference between the revenues and expenses represent the Change in Net Assets for the year ended June 30, 2011. The Statement of Cash Flows presents information on the RTA’s cash receipts/payments and net changes in cash (and cash equivalents) from operating, capital/capital-related financing, non-capital financing, and investing activities and decisions during the year ended June 30, 2011. The RTA’s basic financial statements are shown on pages 10 – 13 of this report. Accompanying the basic financial statements are Notes to the Basic Financial Statements. These notes provide supplemental information on significant accounting policies, cash and investments, governmental subsidies, inventory, capital assets, long-term debt, deferred revenues, and other significant events in other areas which resulted in the financial performance reflected in those statements. Notes to the Basic Financial Statements are shown on pages 14 – 34 of this report. FINANCIAL STATEMENT ANALYSIS STATEMENT OF NET ASSETS As stated earlier, increases or decreases in net assets over time may serve as a useful indicator of the RTA’s financial position. A summary of the Statements of Net Assets during the years ended June 30, 2011, 2010, and 2009 are shown below. The focus is on Net Assets (Note 1):

June 30, 2011 June 30, 2010 June 30, 2009

Capital Assets, Net 27,780,597$ 31,223,830$ 41,390,505$ All Other Assets 30,307,223 34,620,346 30,016,060

Total Assets 58,087,820 65,844,176 71,406,565

Current Liabilities 24,301,484 29,739,719 26,158,187 Long-Term Liabilities 3,830,000 5,650,000 7,405,000

Total Liabilities 28,131,484 35,389,719 33,563,187

Net Assets 29,956,336$ 30,454,457$ 37,843,378$

Net Assets (Note 1):Investment in Capital Assets 22,130,597$ 23,818,830$ 32,270,505$ Restricted 1,907,694 1,903,698 1,898,061 Unrestricted 5,918,045 4,731,929 3,674,812

Total Net Assets 29,956,336$ 30,454,457$ 37,843,378$

In the year ended June 30, 2011, 74% of RTA’s Net Assets reflected its investment in Capital Assets (e.g., buses, support vehicles, passenger facilities/structures, and peripheral equipment for operations, maintenance, and administrative support). The RTA uses these capital assets to provide transportation service to the surrounding communities, as well as maintain the necessary service infrastructure. All of RTA’s capital assets were procured with a mix of federal, state, and local funds. The capitalization threshold for rolling stock (bus equipment, parts, materials) for the year ended June 30, 2011, was $1,102. A threshold was also established for all other items that cost $400 or more and have a useful life of more than one year. Any item purchased that did not meet the aforementioned criteria was period expensed.

Item 9 58

5

RTA’s net assets decreased $498,121 (2 percent) in the year ended June 30, 2011. This is mainly attributed to decreased capital asset purchases. STATEMENT OF ACTIVITIES AND CHANGES IN NET ASSETS The Statement of Activities and Changes in Net Assets provides information regarding RTA’s revenues and expenditures. The table below reflects a summary of RTA’s Statements of Activities and Changes in Net Assets during the years ended June 30, 2011, 2010, and 2009.

June 30, 2011 June 30, 2010 June 30, 2009Revenues

Passenger Fares 9,410,428$ 9,286,455$ 8,845,927$ Operating Subsidies 35,655,447 37,617,446 41,790,242 Capital Funds 9,467,434 13,282,704 12,011,737 Interest Income and Other Revenue 1,001,991 1,472,619 2,222,470

Total Revenues 55,535,300 61,659,224 64,870,376

ExpensesSalaries and Benefits 21,325,459 23,267,418 26,247,120 Purchased Transportation 17,259,593 17,076,662 18,228,858 Materials and Supplies 3,835,516 6,957,928 3,775,426 Services 1,883,478 1,757,221 1,755,834 Casualty and Liability 395,544 1,154,730 1,656,079 Utilities/Taxes/Interest/Misc. Other 1,703,692 1,477,423 1,690,408

Subtotal Expenses Before Depreciation/Amortization 46,403,282 51,691,382 53,353,725

Depreciation/Amortization 9,630,139 17,356,763 9,232,689

Total Expenses Including Depreciation/Amortization 56,033,421 69,048,145 62,586,414

Change in Net Assets (498,121) (7,388,921) 2,283,962 Net Assets:Beginning of Year 30,454,457 37,843,378 35,559,416

End of Year 29,956,336$ 30,454,457$ 37,843,378$

Revenues. Passenger Fares represented 17 percent of the fiscal year 2011 revenue. Passenger Fares for Directly Operated/Contracted Fixed Route, Contracted Dial-A-Ride, and ADA increased $123,973 from the year ended June 30, 2010. This increase (1%) is attributed to a 2% increase in overall system-wide ridership compared to the year ended June 30, 2010. RTA’s CommuterLink service segment experienced a 53% increase in ridership due to high gasoline prices and a newly classified CommuterLink route. The Dial-A-Ride service segment experienced a ridership decrease of 2% due to the Board-directed changes in service policy. Operating Subsidies (64 percent of total year ended June 30, 2011 revenue) decreased by $1,961,999 and was primarily attributed to the decrease in FTA 5307 (ARRA) funds. Capital Funds (17 percent of total revenue) decreased by $3,815,270 mainly due to the large scale expenditures in fiscal year 2010 related to the Perris and Corona Transit Centers. Interest Income and Other Revenue represented the remaining 2 percent of the total year ended June 30, 2011 revenue. The majority of Other Revenue is attributed to CNG sales revenue and reimbursements from the California Employers’ Retirement Benefit Trust (CERBT).

Item 9 59

6

The combined amount of Operating Subsidies and Capital Funds reflect $45,122,881 (81 percent of total revenue). These funds come from a variety of specific funding sources. Each funding source is guided by government regulations regarding type and use of funds. A breakdown of specific Operating and Capital Subsidy/Grant dollar amounts by funding source for the year ended June 30, 2011 is shown below, accompanied by the year ended June 30, 2010 amounts for comparison purposes.

$19,013,107 $12,905,702

$497,848

$928,732 $2,310,058

Operating Subsidies - June 30, 2011 $35,655,447

Local Transportation Fund (LTF)

FTA - Section 5307

FTA - Section 5311

FTA - Section 5316/5317

Measure A

$4,585,098

$499,326

$14,459

$4,368,551

Capital Funds - June 30, 2011 $9,467,434

FTA

State Transit Assistance (STA)

Local Transportation Fund (LTF)

Other

Expenses. Adopted RTA policies, procedures, and business processes are used as management tools to control expenses and attain goals and objectives. These controllable Operating Expenses consist of cost elements that exclude depreciation, interest, and pass-through activity. For purposes of this analysis, Operating Expenses before Depreciation, Interest, and Pass-Through Grants will be discussed.

Operating expenses totaled $45,603,600 for the year ended June 30, 2011, decreasing from $47,323,141 for the year ended June 30, 2010 (a 4 percent decrease). This decrease is primarily attributed to reductions in both insurance and benefits. A breakdown of Operating Expenses (as a percentage of net operating expenses) is shown on the next page, accompanied by the year ended June 30, 2010 percentages for comparison purposes.

June 30, 2010:LTF: 17,615,786$ FTA - Section 5307: 17,643,304$ FTA - Section 5311: 567,682$ FTA - Section 5316/5317: 775,813$ Measure A: 1,014,861$

37,617,446$

June 30, 2010:FTA: 8,178,518$ STA: 597,972$ LTF: 47,128$ Other: 4,459,086$

13,282,704$

Item 9 60

7

47%

38%

7%

4%

1% 3%

Operating Expenses Before Depreciation, Interest, and Pass-Through Grants June 30, 2011

Salaries and Benefits

Purchased Transportation

Materials and Supplies

Services

Casualty and Liability

Utilities/Taxes/Interest/Misc. Other

Depreciation and amortization expense decreased $7,726,624 for the year ended June 30, 2011, due to a change in the depreciation method for the vehicle fleet in fiscal year 2010. BUDGETARY HIGHLIGHTS Annual Operating/Capital budgets and plans are used as a management tool to monitor Revenue and Expenses and evaluate operating performance at any given time period. The RTA’s Board of Directors approves these items prior to implementation. The fiscal year 2011 budget total of $54,618,441 included $49,966,377 for Operating Expenses and $4,652,064 for Capital Projects. RTA finished the year ended June 30, 2011, with operating expenses net of depreciation, interest, and pass-through grant expenses $4,362,777 under budget. CAPITAL ASSETS RTA’s investment in Capital Assets (net of accumulated depreciation) as of June 30, 2011, amounted to $27,780,597. This investment in capital assets includes land, buildings, fleet, communication/farebox systems, machinery/equipment, and passenger facilities. All assets have been purchased with federal, state, or local grants awarded to the RTA. Overall, there was a decrease of 11 percent in the RTA’s investment in capital assets. Significant Capital Asset activity during the year ended June 30, 2011 included the following:

Purchase of 16 support vehicles for agency operations personnel Improvement of bus shelters and bus stop amenities Maintenance replacement parts Computer and software improvements Retirement of 17 support vehicles and 7 Paratransit Vans

June 30, 2010:Salaries and Benefits: 49%Purchased Transportat ion: 36%Materials and Supplies: 6%Services: 4%Casualty and Liability: 2%Utilities/Taxes/Misc. Other: 3%

Item 9 61

8

To gain an understanding of capital asset additions and retirements at a historical cost relationship, an analysis of capital asset activity before accumulated depreciation is shown in the schedule below:

Balance BalanceJuly 1, 2010 Additions Retirements June 30, 2011

Land 2,546,389$ -$ -$ 2,546,389$ Buildings 12,655,086 - - 12,655,086 Vehicles 54,667,003 319,048 (654,555) 54,331,496 Equipment 25,750,560 2,652,707 (333,483) 28,069,784 Construction in Progress 5,698,919 3,400,417 (204,279) 8,895,057

Total Capital Assets 101,317,957 6,372,172 (1,192,317) 106,497,812 Less Accumulated Depreciation (70,094,127) (9,603,260) 980,172 (78,717,215)

Total Assets, Net of Depreciation 31,223,830$ (3,231,088)$ (212,145)$ 27,780,597$

Total capital asset additions totaled $6,372,172. The retirement of the 17 support vehicles and 7 Paratransit Vans and other assets reflected a decrease of $1,192,317. Coupled with the application of net accumulated depreciation of $8,623,088, capital assets decreased $3,443,233. Additional detail on RTA’s Capital Asset activity for the year is shown in Note 5 of the Notes to the Basic Financial Statements on pages 23 – 25 this report. DEBT ADMINISTRATION In February 2003, the RTA executed an agreement with the California Transit Finance Corporation (CTFC) in order to provide funds for the defeasance and redemption of a portion of the outstanding principal amount of the California Transit Variable Rate Demand Bonds, Series 1997 for 57 forty-foot transit buses and related equipment. This was executed in an effort to reduce RTA risk and take advantage of low market interest rates. The outstanding principal amount is $5,650,000. Principal and interest installments have been paid per the contractual payment schedule. The final installment of principal and interest will be paid in fiscal year 2014, and the entire remaining obligation is fully-funded. Additional information on this transaction, as well as related financial schedules can be found in Note 6 of the Notes to the Basic Financial Statements, pages 25 – 26 of this report. ECONOMIC FACTORS AND NEXT YEAR’S BUDGET These significant factors were considered as budget assumptions when preparing RTA’s budget for fiscal year 2012:

Demand for transit services will grow at a moderate rate over the next several years due to fuel prices, economic conditions, and increased traffic congestion.

Bus service plans must be even more sensitive to funding constraints and revenue projections due to the economy – which is forecasted to remain constrained for the next few years.

While expansion and enhancements to existing service levels are top priority in order to grow ridership and maintain or increase productivity, revenue hours were slightly contracted in the year ended June 30, 2011, and are budgeted to increase slightly in fiscal year 2012. In light of the forecasts for continuing soft economic conditions and a prolonged recovery, additional service changes are being considered within anticipated funding.

Sensitivity to and monitoring of fuel prices and other consumables needed to provide service. Sensitivity to employee wages, health care benefits, workers’ compensation, and pension

benefits. Utilization of professional consultants that will enhance future operations in the area of route

planning and scheduling as well as productivity improvement will only be utilized if critical and essential to basic operations.

Initiation of a Travel Training Program seeking to transfer users of demand response service to fixed route service.

Item 9 62

9

Commence and complete a Comprehensive Operational Analysis (COA). Compliance with Governmental Accounting Standards Board (GASB) Statement No. 43 and

Statement No. 45 with respect to the RTA’s OPEB (retiree medical plan). The RTA completed an actuarial assessment of the OPEB funding progress as of June 30, 2011. The report indicated that the RTA’s previous pre-funding effort has significantly mitigated the unfunded actuarial accrued liability, however, health care cost trend rates continue to be an area of concern.

Significant capital appropriations have been programmed through the fiscal year 2012 budget cycle for the large scale procurement of revenue vehicle replacements. The specifications and requests for proposals (RFP) on the procurement of 87 low floor CNG forty-foot buses is anticipated for release in early fiscal year 2012.

The approved budget for fiscal year 2012 totals $78,819,940, a 44 percent increase over the year ended June 30, 2011 budget. As mentioned above, the large increase is related to capital appropriations as it pertains to the procurement of forty-foot CNG buses. Operating expenses, net of depreciation and interest expenses, are budgeted at $54,104,083 and capital expenditures are budgeted at $24,715,857. RTA relies on Operating and Capital Subsidies for 81 percent of its total revenue. These subsidies come from a variety of specific funding sources. Each funding source is guided by government regulations regarding type and use of funds. A component of RTA Operating Funds is local operating assistance, which is comprised of Local Transportation Funds (LTF) and State Transportation Assistance (STA) funds. Transportation Development Act (TDA) and Public Utilities Code (PUC) provisions govern the use of these funds. One such provision is conformance to a predetermined Farebox Recovery Ratio (Fare Revenue/Operating Expenses) set by the Riverside County Transportation Commission (RCTC) and CalTrans. The fiscal year 2012 predetermined target ratio is 17.04 percent. RTA’s Board of Directors approved the fiscal year 2012 budget, which indicates a projected farebox recovery ratio of 22.73 percent, resulting in a projected favorable variance of 5.69 percent. RTA anticipates being in conformance with the Farebox Recovery Ratio provision. Additional information on TDA conformance is found in Note 12 of the Notes to the Basic Financial Statements, page 34 of this report. The Board of Directors adopted the fiscal year 2012 operating budget considering an overall system-wide ridership that is flat as compared to fiscal year 2011. Projected revenues are sufficient to support the service given funding projections developed for the period. Because of cost volatility for fuel and other operating expenses such as workers’ compensation, as well as any potential changes in projected farebox revenues, staff may revisit service levels to verify that the proposed service can be sustained in the future. Further, if additional capital expenditures are necessary for strategic purposes, staff will develop a mid-year budget revision to present to the Board of Directors for consideration. REQUESTS FOR INFORMATION This financial report is designed to provide a general overview of the RTA’s finances for all interested parties. Questions concerning any of the information provided in this report or requests for additional financial information should be addressed to the Chief Financial Officer, Riverside Transit Agency, P.O. Box 59968, Riverside, California 92517.

Item 9 63

BASIC FINANCIAL STATEMENTS

Item 9 64

See accompanying notes to the basic financial statements.

10

RIVERSIDE TRANSIT AGENCY STATEMENTS OF NET ASSETS

JUNE 30, 2011 AND 2010

2011 2010ASSETS

CURRENT ASSETS:Cash, cash equivalents, and investments (Note 2) 22,360,670$ 22,419,238$ Accounts receivable 860,494 2,957,215 Due from other governmental agencies (Note 3) 2,968,884 5,051,568 Interest receivable 25,926 32,868 Inventories (Note 4) 734,164 931,047 Prepaid expenses 366,982 254,671 Other postemployment benefits (Note 10) 1,037,611 998,364

Total Current Assets 28,354,731 32,644,971

NONCURRENT ASSETS:Restricted assets for debt service:

Cash and investments held by fiscal agent (Note 2) 1,907,694 1,903,698

Capital assets, net (Note 5) 27,780,597 31,223,830

Financing costs and other assets, net 44,798 71,677

Total Noncurrent Assets 29,733,089 33,199,205

Total Assets 58,087,820$ 65,844,176$

LIABILITIES

CURRENT LIABILITIES:Accounts payable and accrued expenses 6,088,710$ 9,513,498$ Accrued payroll and related taxes - 724,917 Interest payable 55,363 70,719 Compensated absences 867,696 850,274 Claims payable (Note 8) 1,691,081 1,455,019 Current portion of certificates of participation (Note 6) 1,820,000 1,755,000 Deferred revenue:

Operating 67,660 113,838 Operating assistance (Note 7) 4,004,399 3,637,981 Capital assistance (Note 7) 9,228,885 10,316,523

Other accrued liabilities 477,690 1,301,950

Total Current Liabilities 24,301,484 29,739,719

LONG-TERM DEBT:Certificates of participation (Note 6) 3,830,000 5,650,000

Total Liabilities 28,131,484 35,389,719

NET ASSETS

NET ASSETS:Invested in capital assets, net of related debt 22,130,597 23,818,830 Restricted for debt service 1,907,694 1,903,698 Unrestricted 5,918,045 4,731,929

Total Net Assets 29,956,336$ 30,454,457$

Item 9 65


11

RIVERSIDE TRANSIT AGENCY STATEMENTS OF ACTIVITIES AND CHANGES IN NET ASSETS

FOR THE YEARS ENDED JUNE 30, 2011 AND 2010

2011 2010

OPERATING REVENUES:Passenger fares 9,410,428$ 9,286,455$

OPERATING EXPENSES:Salaries 13,889,866 13,766,407 Employee benefits 7,435,593 9,501,011 Purchased transportation 17,259,593 17,076,662 Other materials and supplies 2,668,215 5,926,550 Services 1,883,478 1,757,221 Fuel and lubricants 1,167,301 1,031,378 Casualty and liability costs 395,544 1,154,730 Miscellaneous expenses 754,201 493,297 Utilities 663,569 630,400 Taxes 47,909 54,809 Depreciation and amortization:

Depreciation - property and equipment 9,603,260 17,329,884 Amortization - financing costs and capital support 26,879 26,879

Total depreciation and amortization 9,630,139 17,356,763

Total Operating Expenses 55,795,408 68,749,228

OPERATING LOSS (46,384,980) (59,462,773)

NONOPERATING REVENUES (EXPENSES):Operating funds:

Local Transportation Fund 19,013,107 17,615,786 Federal Transit Administration - Section 5307 12,905,702 17,643,304 Federal Transit Administration - Section 5311 497,848 567,682 Federal Transit Administration - Section 5316/5317 928,732 775,813 Measure A 2,310,058 1,014,861

Total operating funds 35,655,447 37,617,446

Capital funds:Federal Transit Administration grants 4,585,098 8,178,518 State Transit Assistance funds 499,326 597,972 Local Transportation Fund 14,459 47,128 Other 4,368,551 4,459,086

Total capital funds 9,467,434 13,282,704

Interest income 73,744 108,344 Interest expense (238,013) (298,917) Gain on sale of operator property 17,585 13,014 Other 910,662 1,351,261

Nonoperating Revenues, Net 45,886,859 52,073,852

Change in Net Assets (498,121) (7,388,921)

NET ASSETS:Beginning of year 30,454,457 37,843,378

End of year 29,956,336$ 30,454,457$

Item 9 66


12

RIVERSIDE TRANSIT AGENCY STATEMENTS OF CASH FLOWS


2011 2010CASH FLOWS FROM OPERATING ACTIVITIES:

Cash received from passengers 9,364,365$ 9,441,322$ Cash payments to suppliers for operations (27,897,264) (26,366,194) Cash payments for general and administrative expenses (22,943,161) (25,881,470)

Net Cash Used in Operating Activities (41,476,060) (42,806,342)

CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES:Operating subsidies received 38,304,877 34,060,078 Other noncapital financing 910,662 1,341,132

Net Cash Provided by Noncapital Financing Activities 39,215,539 35,401,210

CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES:Capital funds received 10,283,940 14,594,448 Payment of long-term debt (1,755,000) (1,715,000) Payments on the acquisition of capital assets (6,167,893) (7,163,209) Proceeds on sale on property and equipment 17,585 14,469 Interest payments (253,369) (311,779)

Net Cash Provided by Capital and Related Financing Activities 2,125,263 5,418,929

CASH FLOWS FROM INVESTING ACTIVITIES:Interest received 80,686 183,973

Net Decrease in Cash, Cash Equivalents, and Investments (54,572) (1,802,230)

CASH, CASH EQUIVALENTS, AND INVESTMENTS:Beginning balance 24,322,936 26,125,166

Ending balance 24,268,364$ 24,322,936$

FINANCIAL STATEMENT PRESENTATION:Cash, cash equivalents, and investments 22,360,670$ 22,419,238$ Restricted cash and investments held by fiscal agent 1,907,694 1,903,698

Total Cash, Cash Equivalents, and Investments 24,268,364$ 24,322,936$

Item 9 67


13

RIVERSIDE TRANSIT AGENCY STATEMENTS OF CASH FLOWS (Continued)


2011 2010

RECONCILIATION OF OPERATING LOSS TONET CASH USED BY OPERATING ACTIVITIES:

Operating loss (46,384,980)$ (59,462,773)$ Adjustments to reconcile operating loss to net cash used by operating activities:

Depreciation and amortization 9,630,139 17,356,763 Changes in operating assets and liabilities:

Decrease in accounts receivable 115 106,612 (Increase) decrease in inventories 196,883 (126,309) Increase in prepaid expenses (112,311) (55,407) Increase in assets related to other postemployment benefits (39,247) (998,364)

Decrease in current operating assets 9,675,579 16,283,295

Increase (decrease) in accounts payable and accrued expenses (3,424,788) 230,226 Increase (decrease) in accrued payroll and related taxes (724,917) 234,650 Increase in compensated absences 17,422 27,612 Increase in claims payable 236,062 158,393 Increase (decrease) in deferred revenue (46,178) 48,255 Increase (decrease) in liabilities related to other postemployment benefits - (196,405) Decrease in other payables (824,260) (129,595)

Increase (decrease) in current operating liabilities (4,766,659) 373,136

Net Cash Used by Operating Activities (41,476,060)$ (42,806,342)$

Item 9 68

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RIVERSIDE TRANSIT AGENCY NOTES TO THE BASIC FINANCIAL STATEMENTS

JUNE 30, 2011 AND 2010 NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The accounting policies of the Riverside Transit Agency (RTA) are in conformity with accounting principles generally accepted in the United States of America applicable to government units. The Governmental Accounting Standards Board (GASB) is the accepted standard-setting body for establishing accounting and financial reporting principles. The following is a summary of the significant accounting policies: A. Financial Reporting Entity

The RTA was established in March 1977 as a Joint Powers Agency (JPA) under authority of Title I, Division 7, Chapter 5, as amended by the Government Code of the State of California. By joint exercise of their common power, the County of Riverside and the nine cities of Western Riverside County created the RTA to serve as a separate public transportation agency. As of June 30, 2011, RTA serves as a public transportation agency to the County of Riverside and seventeen cities of Western Riverside. Members of the JPA reserve the right to provide transportation services within their respective jurisdictions, while the RTA serves as a unifying umbrella agency, coordinating transportation services throughout Western Riverside County. The RTA owns, maintains, and operates (directly or through contracts with other operators) the public transit system of Western Riverside County. The RTA is a special purpose government with no component units and is eligible for funding under Section 99200 et. seq. of the California Public Utilities Code.

B. Basic Financial Statements

The basic financial statements (i.e., the Statement of Net Assets, the Statement of Activities and Changes in Net Assets, and the Statement of Cash Flows) report information on all of the enterprise activities of the RTA. These basic financial statements are presented in accordance with GASB Statement No. 34, Basic Financial Statements—Management’s Discussion and Analysis—for State and Local Governments and related standards; Statement No. 37, Basic Financial Statements – and Management’s Discussion and Analysis – for State and Local Governments: Omnibus; and Statement No. 38, Certain Financial Statement Note Disclosures. The standards provide for significant changes in terminology; recognition of contributions in the Statement of Activities and Changes in Net Assets; inclusion of a Management’s Discussion and Analysis as supplementary information; and other changes.

C. Measurement Focus, Basis of Accounting, and Financial Statement Presentation

The basic financial statements are prepared using the economic resource measurement focus and the accrual basis of accounting. Accordingly, all assets and liabilities (whether current or noncurrent) are included on the Statement of Net Assets. The Statement of Activities and Changes in Net Assets presents increases (revenues) and decreases (expenses) in total net assets. Under the accrual basis of accounting, revenues are recognized in the period in which they are earned while expenses are recognized in the period in which the liability is incurred. Private-sector standards of accounting and financial reporting issued prior to December 1, 1989, are generally followed to the extent that those standards do not conflict with or contradict guidance of the GASB. Governments also have the option of following subsequent private-sector guidance for their business-type activities, subject to some limitations.

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NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) C. Measurement Focus, Basis of Accounting, and Financial Statement Presentation (Continued)

The RTA distinguishes operating revenues and expenses from nonoperating items. Operating revenues and expenses generally result from providing transportation services. The principal operating revenues of the RTA are charges to passengers for transportation services (passenger fares). Operating expenses include the cost of providing service, including general and administrative expenses and depreciation of capital assets. All revenues and expenses not meeting this definition are reported as nonoperating revenues and expenses. Capital contributions are reported as a separate line item in the Statement of Activities and Changes in Net Assets. When both restricted and unrestricted resources are available for use, it is the RTA’s policy to use restricted resources for the purposes intended, then unrestricted resources as they are needed.

D. Cash and Cash Equivalents The RTA’s cash and cash equivalents are considered to be cash on hand, demand deposits, and short-term investments with original maturities of three months or less from the date of acquisition.

E. Investments

All investments are stated at fair value, except for money market investments that have a remaining maturity of less than one year when purchased are stated at amortized cost. Money market investments are short-term, highly liquid debt instruments including commercial paper, banker’s acceptances, and U.S. Treasury and Agency obligations. Fair value is the value at which a financial instrument could be exchanged in a current transaction between willing parties, other than in a forced or liquidation sale. All investment income, including changes in fair value, is included in nonoperating revenues.

F. Restricted Assets Restricted assets represent allocations of cash and certain assets to redeem debt. G. Inventories Inventory of parts is stated at the lower of cost (moving average) or market. H. Capital Assets

Capital assets are stated at cost, net of accumulated depreciation, except for the portions acquired by contribution, which are recorded at fair value at the time received. The RTA did not receive any donated capital assets during the years ended June 30, 2011 and 2010. The capitalization threshold for any equipment, tires, tubes, and materials of rolling stock was $1,102 in the years ended June 30, 2011 and 2010. All other items costing $400 or more and having an estimated life of more than one year have also been capitalized. The Federal Transit Administration (FTA) excludes the bus tire lease from this requirement as it is depreciated over a twelve-month period. Depreciation is based on the estimated useful lives of the assets, which range from 1 to 30 years, using the straight-line method or the units-of-consumption method. The cost of normal maintenance and repairs that do not add to the value of the asset or materially extend asset lives are not capitalized. The estimated useful lives of capital assets are as follows:

Buildings and improvements 25 – 30 yearsTransit coaches (30’ to 40’ vehicles) Units-of-ConsumptionTransit coaches (less than 30’ vehicles) Units-of-ConsumptionParatransit vans and support vehicles Units-of-ConsumptionFurniture and equipment 3 – 5 yearsBus tires 1 year

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NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) H. Capital Assets (Continued)

As discussed in Note 5, during the year ended June 30, 2010, RTA changed its depreciation method for newly acquired vehicles from a fixed straight-line methodology to a units-of-consumption methodology, and decreased the useful lives of vehicles acquired prior to July 1, 2009. This change resulted in an increase in depreciation expense of approximately $7 million in the year ended June 30, 2010, compared to the year ended June 30, 2011. RTA utilizes vehicle mileage as the basis for its units-of-consumption depreciation calculation. RTA determined that mileage was the best indication of the actual life of its vehicle fleet.

I. Bond Premiums, Discounts, and Issuance Costs

Premiums, discounts, and costs of issuance on debt issues are amortized over the respective lives of the debt using the straight-line method.

J. Claims and Judgments

An estimated loss has been recorded, net of insurance coverage and inclusive of an estimate for incurred but unreported claims, when it is probable that a claim liability has been incurred and the amount of the loss can be reasonably estimated.

K. Compensated Absences

Full-time administrative employees, except for the Chief Executive Officer (CEO), accrue up to 240 hours of vacation and 40 hours of floating holidays annually, while part-time administrative employees accrue up to 120 hours of vacation only per year. Vacation and floating holidays must be taken the year in which they are earned and will not be carried over from year to year or paid-out unless approved by the CEO. A full-time employee shall earn 96 hours of sick leave per year but may not accumulate a sick leave balance of more than 1,040 hours. Employees may elect to take a sick leave balance pay-out on the first paycheck in July and the first paycheck in December. Union employees accrue up to 240 hours of vacation, 64 hours of floating holidays, and 96 hours of sick leave annually. Sick leave pay-outs to union employees are issued in the same manner as noted above, with the exception that union employees must retain 48 hours in bank time, provided they meet the requirements stipulated in Article 37 of the Memorandum of Understanding. Additionally, union employees may accrue sick leave time up to a maximum of 1,040 hours.

L. Net Assets In the Statement of Net Assets, net assets are classified in the following categories:

Invested in Capital Assets, Net of Related Debt – This amount consists of capital assets net of accumulated depreciation and reduced by outstanding debt that is attributed to the acquisition, construction, or improvement of the assets. Restricted Net Assets – This amount is restricted by external creditors, grantors, contributors, or laws or regulations of other governments. Unrestricted Net Assets – This amount is all net assets that do not meet the definition of “invested in capital assets, net of related debt” or “restricted net assets.”

M. Use of Estimates

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect certain reported amounts and disclosures. Accordingly, actual results could differ from those estimates.

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NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) N. Reclassifications

Certain amounts in the prior-year financial statements have been reclassified for comparative purposes to conform with the presentation in the current-year financial statements.

O. Government Grants and Subsidies

Subsidies and grants for operating assistance, the acquisition of equipment, or other capital outlay are not formally recognized in the accounts until the grant becomes a valid receivable as a result of the RTA’s complying with appropriate grant requirements.

For presentation purposes, operating assistance subsidies are included in nonoperating revenues in the year in which the grant is applicable and the related reimbursable expenditure is incurred. As required by GASB Statement No. 33, Accounting and Financial Reporting for Nonexchange Transactions, capital contributions beginning in the year ended June 30, 2001, are reported as nonoperating revenues in the statement of activities and changes in net assets. Assets acquired with restricted capital grant funds are included in capital assets. Beginning the year ended June 30, 1999, federal operating revenues were replaced by allowing capitalization and subsequent reimbursements of percentage of eligible maintenance operating expenses as defined by the FTA. These proceeds are recorded as nonoperating revenues. Grants received in excess of allowable expenditures are recorded as deferred revenues.

P. Budget

The RTA’s fiscal policies establish the framework for the management and control of the RTA’s resources to ensure that the RTA remains fiscally sound. The RTA’s goals and policies, which are approved by the Board of Directors, determine where and how the RTA resources should be dedicated. For this reason, the RTA’s goals, objectives, short and long-range planning, and performance analyses are incorporated into the budget development process. It is the policy of the RTA that the Board of Directors approves an annual budget prior to the beginning of each year. The budget is developed generally using the accrual basis of accounting. All annual operating appropriations lapse at the fiscal year-end.

Q. Future Governmental Accounting Standards Board Statements

GASB Statement No. 60 – Accounting and Financial Reporting for Service Concession Arrangements addresses accounting and financial reporting issues related to public–private and public–public partnerships. The statement is effective for periods beginning after December 15, 2011. GASB Statement No. 60 will not have an effect on the RTA. GASB Statement No. 61 – The Financial Reporting Entity: Omnibus, an amendment of GASB Statements No. 14 and No. 34 modifies a number of provisions with regard to reporting of component units within a financial reporting entity. The statement is effective for periods beginning after June 15, 2012. As of the date of these financial statements, the RTA has not made an assessment of any changes that will occur upon this statement’s implementation. GASB Statement No. 62 – Codification of Accounting and Financial Reporting Guidance Contained in Pre-November 30, 1989 FASB and AICPA Pronouncements incorporates into the GASB’s authoritative literature certain accounting and financial reporting guidance that is included in the following pronouncements issued on or before November 30, 1989, which does not conflict with or contradict GASB pronouncements – Financial Accounting Standards Board (FASB) Statements and Interpretations, Accounting Principles Board Opinions and Accounting Research Bulletins of the American Institute of Certified Public Accountants’ (AICPA) Committee on Accounting Procedure. The statement is effective for periods beginning after December 15, 2011. However, as the statement codifies what is in current practice, there is no net effect on the RTA’s accounting or financial reporting upon the statement's implementation.

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NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Q. Future Governmental Accounting Standards Board Statements (Continued)

GASB Statement No. 63 – Financial Reporting of Deferred Outflows of Resources, Deferred Inflows of Resources and Net Position modifies current financial reporting of those elements. The statement is effective for periods beginning after December 15, 2011. GASB Statement No. 63 will not have an effect on the RTA’s financial statements. GASB Statement No. 64 – Derivative instruments: Application of Hedge Accounting Termination Provisions – GASB Statement No. 64 amends current accounting and financial reporting related to terminations of swap agreements due to default or other termination events. In certain instances where swap counterparties or credit support providers are replaced, hedge accounting may continue, rather than cease. The provisions of GASB Statement No. 64 are effective for financial statements beginning after June 15, 2011. Because the RTA does not enter into hedge agreements with swap providers for the purpose of managing risk beyond investment return, GASB Statement No. 64 will not apply.

NOTE 2 – CASH, CASH EQUIVALENTS, AND INVESTMENTS Cash, cash equivalents, and investments as of June 30, 2011 and 2010 are classified in the accompanying financial statements as follows:

2011 2010Statement of Net Assets: Cash, cash equivalents, and investments 22,360,670$ 22,419,238$ Cash and investments held by fiscal agent (restricted) 1,907,694 1,903,698


Cash, cash equivalents, and investments as of June 30, 2011 and 2010, consist of the following:

2011 2010

Cash on Hand 1,500$ 1,500$ Deposits with Financial Institutions 253,942 2,417,738 Investments 24,012,922 21,903,698


Investments Authorized by the California Government Code and the RTA’s Investment Policy The table below identifies the investment types that are authorized for the RTA by the California Government Code (or the RTA’s investment policy, where more restrictive). The table also identifies certain provisions of the California Government Code (or the RTA’s investment policy, where more restrictive) that address interest rate risk, credit risk, and concentration of credit risk. This table does not address investments of debt proceeds held by bond trustee that are governed by the provisions of debt agreements of the RTA, rather than the general provisions of the California Government Code or the RTA’s investment policy.

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NOTE 2 – CASH, CASH EQUIVALENTS, AND INVESTMENTS (Continued) Investments Authorized by the California Government Code and the RTA’s Investment Policy (Continued)

Authorized Investment Type

Maximum Maturity

Maximum Percentage of *Portfolio

Maximum Investment

in One Issuer U.S. Treasury Obligations 2 years None None Local Agency Investment Fund (LAIF) N/A None None Riverside County Pooled Investment Fund (RCPIF) N/A None None California Arbitrage Management (CAMP) Pool N/A ** None

* Excluding amounts held by bond trustee that are not subject to California Government Code

restrictions. ** Funds deposited in this category are limited to the remaining Certificates of Participation (COP)

proceeds and interest earned to pay the debt service on the 57 replacement buses purchased in 2001/2002.

Investments Authorized by Debt Agreements Investment of debt proceeds held by bond trustee are governed by provisions of the debt agreements, rather than the general provisions of the California Government Code or the RTA’s investment policy. The table below identifies the investment types that are authorized for investments held by bond trustee. The table also identifies certain provisions of these debt agreements that address interest rate risk, credit risk, and concentration of credit risk.

Authorized Investment Type

Maximum Maturity

Maximum Percentage

Allowed

Maximum Investment

in One Issuer Investment Contracts 30 years None None U.S. Treasury Obligations 5 years None None U.S. Agency Securities 5 years None None Banker’s Acceptances 30 days 40% 30% Commercial Paper 270 days 25% 10% Unsecured Certificates of Deposit 30 days 30% None Repurchase Agreements 1 year None None Medium-Term Notes 5 years 30% None Money Market Funds N/A 20% 10%

Disclosures Relating to Interest Rate Risk Interest rate risk is the risk that changes in market interest rates will adversely affect the fair value of an investment. Generally, the longer the maturity of an investment, the greater the sensitivity of its fair value to changes in market interest rates.

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NOTE 2 – CASH, CASH EQUIVALENTS, AND INVESTMENTS (Continued) Disclosures Relating to Interest Rate Risk (Continued) Information about the sensitivity of the fair values of the RTA’s investments (including investments held by bond trustee) to market interest rate fluctuations is provided by the following table that shows the distribution of the RTA’s investments by maturity:

12 Months 13 to 24 25 to 60 More ThanInvestment Type or Less Months Months 60 Months

County Investment Pool 19,705,228$ 19,705,228$ -$ -$ -$ State Investment Pool 2,400,000 2,400,000 - - - Held by bond trustee: Money market funds 15,694 15,694 - - - Investment contracts 1,892,000 - - 1,892,000 -

Total 24,012,922$ 22,120,922$ -$ 1,892,000$ -$

Remaining Maturity (in Months)

Disclosures Relating to Credit Risk Generally, credit risk is the risk that an issuer of an investment will not fulfill its obligation to the holder of the investment. This is measured by the assignment of a rating by a nationally recognized statistical rating organization. Presented below is the minimum rating required by (where applicable) the California Government Code, the RTA’s investment policy, or debt agreements, and the actual rating as of year-end for each investment type.

MinimumLegal Not

Investment Type Rating Aaa AAA Rated

County Investment Pool 19,705,228$ N/A 19,705,228$ -$ -$ State Investment Pool 2,400,000 N/A - - 2,400,000 Held by bond trustee: Money market funds 15,694 A - 15,694 - Investment contracts 1,892,000 N/A - - 1,892,000

Total 24,012,922$ 19,705,228$ 15,694$ 4,292,000$

Rating as of Year-End

Concentration of Credit Risk The investment policy of the RTA contains no limitations on the amount that can be invested in any one issuer beyond that stipulated by the California Government Code. Investments in any one issuer (other than U.S. Treasury securities, mutual funds, and external investment pools) that represent 5% or more of total RTA investments are as follows:

Issuer Investment

Type Reported Amount

FHLMC Federal agency securities $ 1,892,000

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NOTE 2 – CASH, CASH EQUIVALENTS, AND INVESTMENTS (Continued) 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 California Government Code and the RTA’s investment policy do not contain legal or policy requirements that would limit the exposure to custodial credit risk for deposits or investment, other than the following provision for deposits: The California Government Code requires that a financial institution secure deposits made by state or local governmental units by pledging securities in an undivided collateral pool held by a depository regulated under state law (unless so waived by the governmental unit). The market value of the pledged securities in the collateral pool must equal at least 110% of the total amount deposited by the public agencies. California law also allows financial institutions to secure RTA deposits by pledging first trust deed mortgage notes having a value of 150% of the secured public deposits. Investment in State and County Pools The RTA is a voluntary participant in the California State Treasurer’s Local Agency Investment Fund (LAIF) and the Riverside County Treasurer’s Pooled Investment Fund (RCTPIF). LAIF is regulated by California Government Code Section 16429 under the oversight of the Treasurer of the State of California. Oversight of the RCTPIF is conducted by the County Treasury Oversight Committee. The fair value of RTA’s investments in these pools is reported in the accompanying financial statements at amounts based upon the RTA’s pro-rata share of the fair value of the entire LAIF and RCTPIF portfolios, respectively. NOTE 3 – DUE FROM OTHER GOVERNMENTAL AGENCIES Amounts due from other governmental agencies consisted of the following at June 30, 2011 and 2010:

2011 2010Federal (FTA):

Operating 2,410,771$ 4,374,740$ Capital 442,552 114,634

State (STA):Capital 47,401 270,023

Other:Capital:

Western Riverside Council of Governments - 22,127

Operating:Metrolink 52,235 46,652 OCTA - Orange County Transportation Authority 15,925 15,262 Riverside County Transportation Commission - 144,934 California Baptist University - 1,433 City of Riverside - 813 City of Beaumont - 343 CalPERS CERBT - 60,607

Total 2,968,884$ 5,051,568$

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NOTE 3 – DUE FROM OTHER GOVERNMENTAL AGENCIES (Continued) Federal Under provisions of the FTA, funds are available to the RTA for maintenance costs; transportation planning; operations; and the acquisition, construction, improvement, and maintenance of transit facilities, transit vehicles, and equipment. State Under provisions of a 1979 amendment to the Transportation Development Act of 1971 (TDA), State of California’s appropriations through the State Transit Assistance Fund (STA) are available for capital projects of a public transportation system. To qualify for operating funds, a transit operator must meet one of the efficiency standards under TDA Section 00314.6. Local The State of California Local Transportation Fund (LTF) monies under the TDA, as amended, are available for transit operations and development. The Riverside County Transportation Commission (RCTC) administers these funds on behalf of the County of Riverside. Funds are apportioned to eligible transit operators based on the percentage of the County of Riverside’s population that lies within each operator’s service area. NOTE 4 – INVENTORIES Inventories consisted of the following as of June 30, 2011 and 2010:

2011 2010

Parts 714,720$ 903,755$ Fuel 3,664 3,912 Oil 15,780 23,380

Total 734,164$ 931,047$

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NOTE 5 – CAPITAL ASSETS Capital assets of the RTA for the years ended June 30, 2011 and 2010 consisted of the following: June 30, 2011


Capital Assets, Not Being Depreciated:Land 2,546,389$ -$ -$ 2,546,389$ Construction in progress 5,698,919 3,400,417 (204,279) 8,895,057

Total Capital Assets, Not Being Depreciated 8,245,308 3,400,417 (204,279) 11,441,446

Capital Assets, Being Depreciated:Buildings 12,655,086 - - 12,655,086 Vehicles:

Bus 40,625,779 - - 40,625,779 Van and minibuses 12,886,919 - (311,341) 12,575,578 Support vehicles 1,154,305 319,048 (343,214) 1,130,139

Equipment:Bus accessories and electronics 2,586,426 231,527 (254,324) 2,563,629 Bus stop amenities 3,126,811 73,098 (71,294) 3,128,615 Communication equipment 1,286,485 733,167 - 2,019,652 Computers 9,240,020 261,043 - 9,501,063 Furniture and office equipment 1,195,312 135,585 - 1,330,897 Capitalized parts/assembly 3,853,488 1,039,864 (7,865) 4,885,487 Support services equipment 4,462,018 178,423 - 4,640,441

Total Capital Assets, Being Depreciated 93,072,649 2,971,755 (988,038) 95,056,366

Less Accumulated Depreciation (70,094,127) (9,603,260) 980,172 (78,717,215)

Total Capital Assets, Being Depreciated, Net 22,978,522 (6,631,505) (7,866) 16,339,151

Total Capital Assets, Net 31,223,830$ (3,231,088)$ (212,145)$ 27,780,597$

Depreciation expense for the year ended June 30, 2011 was $9,603,260.

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NOTE 5 – CAPITAL ASSETS (Continued) June 30, 2010


Capital Assets, Not Being Depreciated:Land 2,546,389$ -$ -$ 2,546,389$ Construction in progress 3,567,440 3,687,285 (1,555,806) 5,698,919

Total Capital Assets, Not Being Depreciated 6,113,829 3,687,285 (1,555,806) 8,245,308

Capital Assets, Being Depreciated:Buildings 12,655,086 - - 12,655,086 Vehicles:

Bus 45,428,491 - (4,802,712) 40,625,779 Van and minibuses 11,124,083 2,458,132 (695,296) 12,886,919 Support vehicles 1,199,891 79,638 (125,224) 1,154,305

Equipment:Bus accessories and electronics 2,598,291 251,310 (263,175) 2,586,426 Bus stop amenities 2,876,468 250,343 - 3,126,811 Communication equipment 1,286,105 15,986 (15,606) 1,286,485 Computers 9,039,667 200,353 - 9,240,020 Furniture and office equipment 1,111,018 84,294 - 1,195,312 Capitalized parts/assembly 2,610,086 1,243,402 - 3,853,488 Support services equipment 4,013,746 448,272 - 4,462,018

Total Capital Assets, Being Depreciated 93,942,932 5,031,730 (5,902,013) 93,072,649

Less Accumulated Depreciation (58,666,256) (17,329,884) 5,902,013 (70,094,127)

Total Capital Assets, Being Depreciated, Net 35,276,676 (12,298,154) - 22,978,522

Total Capital Assets, Net 41,390,505$ (8,610,869)$ (1,555,806)$ 31,223,830$

Depreciation expense for the year ended June 30, 2010 was $17,329,884. Changes in capital assets by funding source for the years ended June 30, 2011 and 2010 are as follows:

Federal State LTF Financed Operator DonatedFunds Funds Funds Measure A Assets and Other Capital Total

June 30, 2009 59,923,275$ 18,910,987$ 11,574,096$ 1,276,099$ 2,790,112$ 5,326,689$ 255,503$ 100,056,761$

Additions 2,910,733 1,980,440 39,984 - - 100,573 - 5,031,730 Reclassification 1,766,138 257,462 - - (2,023,600) - - - Work in progress 736,577 (673,075) 7,144 - - 2,060,833 - 2,131,479 Deletions (4,293,121) (837,534) (299,735) (184,006) (80,604) (6,000) (201,013) (5,902,013)

June 30, 2010 61,043,602 19,638,280 11,321,489 1,092,093 685,908 7,482,095 54,490 101,317,957

Additions 1,715,265 1,122,995 12,729 - - 120,766 - 2,971,755 Reclassification 769,459 154,996 75 - (685,908) (238,622) - - Work in progress 1,069,767 682,686 1,430 - - 1,442,255 - 3,196,138 Deletions (729,133) (136,913) (107,156) (14,836) - - - (988,038)

June 30, 2011 63,868,960$ 21,462,044$ 11,228,567$ 1,077,257$ -$ 8,806,494$ 54,490$ 106,497,812$

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NOTE 5 – CAPITAL ASSETS (Continued) During the year ended June 30, 2010, the RTA changed its depreciation method for newly acquired vehicles from a fixed straight-line methodology to a units-of-consumption methodology, and decreased the useful lives of vehicles acquired prior to July 1, 2009, to more closely match the actual consumption based on mileage. RTA utilizes vehicle mileage as the basis for its units-of-consumption depreciation calculation. RTA determined that mileage was the best indication of the actual life of its vehicle fleet. The units-of-consumption depreciation methodology is widely accepted by the FTA and accounting principles generally accepted in the United States of America. RTA analyzed the mileage patterns of its existing fleet (vehicles acquired prior to the year ended June 30, 2010) and determined that several vehicles were depreciating at a greater rate than the previous straight-line method would indicate. Upon further analysis, the RTA isolated two groups of vehicles: 1) vehicles that had already surpassed the recommended FTA mileage limits for their class and 2) vehicles on pace to surpass their recommended FTA mileage limits at least one year prior to reaching the end of their useful lives in years. The RTA adjusted the useful lives of the isolated vehicles to the number of years necessary to closer match the actual physical deterioration of the vehicle in terms of mileage. The adjustment resulted in the change of the depreciation base of 209 vehicles, which resulted in an immediate increase of $6,692,143 in depreciation expense. Of these 209 vehicles, 28 were immediately fully depreciated and 181 vehicles were adjusted for accelerated depreciation. The total impact of the adjustment resulted in an increase of $7,302,861 in depreciation expense for the year ended June 30, 2010. This included the $6,692,143 adjustment and $610,718 in accelerated depreciation for the remaining months of the year ended June 30, 2010, after the adjustment was made. If the adjustment had not been made, depreciation expense for the year ended June 30, 2010, would have been $10,027,023. NOTE 6 – LONG-TERM DEBT The following is a schedule of changes in long-term debt for the year ended June 30, 2011:

Balance BalanceDescription July 1, 2010 Additions Deletions June 30, 2011 Current Long-Term

Certificates of Participation 7,405,000$ -$ 1,755,000$ 5,650,000$ 1,820,000$ 3,830,000$

Total 7,405,000$ -$ 1,755,000$ 5,650,000$ 1,820,000$ 3,830,000$

Classification

The following is a schedule of changes in long-term debt for the year ended June 30, 2010:

Balance BalanceDescription July 1, 2009 Additions Deletions June 30, 2010 Current Long-Term

Certificates of Participation 9,120,000$ -$ 1,715,000$ 7,405,000$ 1,755,000$ 5,650,000$

Total 9,120,000$ -$ 1,715,000$ 7,405,000$ 1,755,000$ 5,650,000$

Classification

Refunding Certificates of Participation In February 2003, the RTA executed an agreement with the California Transit Finance Corporation (CTFC) in order to provide funds for the defeasance and redemption of a portion of the outstanding principal amount of the California Transit Variable Rate Demand Bonds, Series 1997 (California Transit Variable Rate Finance Program) (“Prior Bonds”) and to pay certain costs associated with the sale and delivery of the Refunding Certificates. In February 2003, CTFC disbursed $18,920,000 to the RTA under a capital lease agreement to provide refunding of a prior bond issuance to the RTA for its purchase of 57 forty-foot transit buses and related equipment. The RTA’s sole liability under the lease agreement is to the CTFC and is not obligated to the owners of the demand bonds in the event of default by the CTFC. Under the terms of the capital lease agreement, the RTA’s lease payments have been pledged by the CTFC for the repayment of the demand bonds. Federal, state and local capital funds, in addition to revenues received from the operation of the RTA, have been pledged as support for the RTA’s net lease payments to the CTFC.

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NOTE 6 – LONG-TERM DEBT (Continued) Refunding Certificates of Participation (Continued) The lease agreement requires annual principal and interest payments beginning October 2003 through October 2013. The RTA’s minimum principal and approximate interest payments under the program for each of the next three years are summarized as follows:

Year endingJune 30, Principal Interest Total

2012 1,820,000$ 187,325$ 2,007,325$ 2013 1,880,000 115,600 1,995,600 2014 1,950,000 39,000 1,989,000

Total 5,650,000 341,925$ 5,991,925$

Less: current portion (1,820,000)

Long-term debt 3,830,000$

NOTE 7 – DEFERRED REVENUES The deferred revenues below represent excess operating assistance and capital assistance. Changes in deferred revenues for the year ended June 30, 2011 for operating assistance are as follows:

FTA TDA/LTF Measure A Total

Operating Assistance:Excess Operating Funds at July 1, 2009 -$ 3,072,896$ -$ 3,072,896$

Allocations received 18,986,799 18,086,338 1,109,394 38,182,531

Funds available 18,986,799 21,159,234 1,109,394 41,255,427 Less: eligible costs (18,986,799) (17,615,786) (1,014,861) (37,617,446)

Excess Operating Funds at July 1, 2010 - 3,543,448 94,533 3,637,981 Allocations received 14,402,869 19,408,234 2,281,349 36,092,452

Funds available 14,402,869 22,951,682 2,375,882 39,730,433 Less: eligible costs (14,402,869) (19,013,107) (2,310,058) (35,726,034)

Excess Operating Funds at June 30, 2011 -$ 3,938,575$ 65,824$ 4,004,399$

Item 9 81

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NOTE 7 – DEFERRED REVENUES (Continued) Changes in deferred revenues for the years ended June 30, 2011 and 2010 for capital assistance are as follows:

Federal STA LTF Prop 1B Other Total

Capital Assistance:Excess Capital Funds at July 1, 2009 (19,893)$ 303,381$ 275,744$ 7,083,857$ (12,275)$ 7,630,814$

Allocations received 8,158,627 445,606 - 3,923,547 3,235,960 15,763,740

Total available 8,138,734 748,987 275,744 11,007,404 3,223,685 23,394,554 Less: capital purchases (3,651,591) (165,735) (47,128) (1,137,349) (2,161,406) (7,163,209) Less: other (4,487,143) (257,462) (314) (186,193) (983,710) (5,914,822)

Excess Capital Funds at July 1, 2010 - 325,790 228,302 9,683,862 78,569 10,316,523

Allocations received 4,585,097 581,887 - 335,374 2,877,438 8,379,796

Total available 4,585,097 907,677 228,302 10,019,236 2,956,007 18,696,319 Less: capital purchases (2,785,032) (305,227) (14,159) (1,500,455) (1,563,020) (6,167,893) Less: other (1,800,065) (194,099) (300) - (1,305,077) (3,299,541)

Excess Capital Funds at June 30, 2011 -$ 408,351$ 213,843$ 8,518,781$ 87,910$ 9,228,885$

Capital assistance deferred revenues by category for June 30, 2011 are as follows:

Category Amount

Revenue Vehicles 6,066,818$

Building, Facilities 2,654,741

Maintenance Equipment 385,036

Communication and Information Systems 99,306

Non-Revenue Vehicles 22,674

General and Administrative 310

Total Deferred Revenue by Category at June 30, 2011 9,228,885$

Public Transportation Modernization, Improvement, and Service Enhancement Act (Prop 1B): In November 2006, California voters passed a bond measure enacting the Highway Safety, Traffic Reduction, Air Quality, and Port Security Bond Act of 2006 (Prop 1B). Of the $19.925 billion of state general obligation bonds authorized, $4 billion was set aside by the state, as instructed by statute, as the Public Transportation Modernization, Improvement, and Service Enhancement Account (PTMISEA). These funds are available to the California Department of Transportation for intercity rail projects and to transit operators in California for rehabilitation, safety or modernization improvements, capital service enhancements or expansions, new capital projects, bus rapid transit improvements, or for rolling stock procurement, rehabilitation, or replacement.

Item 9 82

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NOTE 7 – DEFERRED REVENUES (Continued) During the year ended June 30, 2011, the RTA received $0 in Prop 1B PTMISEA funds, earned interest of $38,666 on deposits of unspent PTMISEA funds, and disbursed $801,500 of PTMISEA funds.

Schedule of PTMISEA Bond 1B Funds For the Year Ended June 30, 2011

Description Amount

Balance – beginning of the year $ 8,350,637 Receipts: PTMISEA receipts - Interest accrued 7/1/2010 through 6/30/2011 38,666 Expenses: PTMISEA expenditures 801,500 Balance – end of year $ 7,587,803

Transit System Safety, Security, and Disaster Response Account (Prop 1B): Of the $19.925 billion of state general obligation bonds authorized, $1 billion was set aside by the state, as instructed by statute, as the Transit System Safety, Security, and Disaster Response Account (TSSSDRA), with $600 million specifically allocated for the California Transit Security Grant Program, California Transit Assistance Fund (CTSGP-CTAF). These funds are available to the California Emergency Management Agency (Cal EMA) and to transit operators in California for capital projects that provide increased protection against a security and safety threat, and for capital expenditures to increase the capacity of transit operators. During the year ended June 30, 2011, the RTA received $291,000 in Prop 1B CTSGP-CTAF funds, earned interest of $5,708 on deposits of unspent CTSGP-CTAF funds, and disbursed $698,955 of CTSGP-CTAF funds.

Schedule of CTSGP-CTAF Bond 1B Funds For the Year Ended June 30, 2011

Description Amount

Balance – beginning of the year $ 1,333,225 Receipts: CTSGP-CTAF receipts 291,000 Interest accrued 7/1/2010 through 6/30/2011 5,708 Expenses: CTSGP-CTAF expenditures 698,955 Balance – end of year $ 930,978

Item 9 83

29

NOTE 8 – LIABILITY INSURANCE The RTA is a participant in the California Transit Insurance Pool (CalTIP) formed under a joint powers agreement for the purpose of providing general and automobile liability insurance for the member agencies. The RTA’s self-insured retention is $25,000 per claim and total coverage limit is $20,000,000. The RTA is self-insured for workers’ compensation claims. Liabilities under this program are accrued and charged to expense when the claims are reasonably determinable and when the existence of the RTA’s liability is probable. Liabilities include an amount for claims that have been incurred but not reported. For the year ended June 30, 2011, the RTA’s self-insured retention is $750,000, per accident/per employee and total coverage is at the state statutory level. Settled claims have not exceeded insurance coverage in any of the past three years ended June 30. The RTA’s liability for claims where it has retained the risk of loss (based on an annual actuarial study) is as follows:

Workers' VehicleCompensation Liability Total

Estimated Liabilities at July 1, 2009 1,235,099$ 282,169$ 1,517,268$

Reserves:New claims 311,370 201,331 512,701 Routine adjustments to existing claims 421,761 (105,710) 316,051

Payments (747,657) (143,344) (891,001)

Estimated Liabilities at July 1, 2010 1,220,573 234,446 1,455,019

Reserves:New claims 444,794 289,159 733,953 Routine adjustments to existing claims 757,601 (128,657) 628,944

Payments (1,042,977) (83,858) (1,126,835)

Estimated Liabilities at June 30, 2011 1,379,991$ 311,090$ 1,691,081$

NOTE 9 – PENSION PLAN Plan Description – The RTA contributes to the California Public Employees’ Retirement System (CalPERS), an agent multiple-employer public employee defined benefit pension plan. CalPERS provides retirement and disability benefits, annual cost-of-living adjustments, and death benefits to plan members and beneficiaries. CalPERS acts as a common investment and administrative agent for participating public entities within the State of California. Benefit provisions and all other requirements are established by state statute and RTA ordinance. Copies of CalPERS’ annual financial report may be obtained from their Executive Office located at 400 P Street, Sacramento, California 95814. Funding Policy – Active plan members are required by state statute to contribute 7% of their annual covered salary (employee share). The RTA makes the contributions required of RTA administrative employees on their behalf and for their account. The RTA was required to contribute at an actuarially determined rate of 8.022% and 8.088% for the years ended June 30, 2011 and 2010, respectively (employer’s share).

Item 9 84

30

NOTE 9 – PENSION PLAN (Continued) Annual Pension Cost – For the years ended June 30, 2011 and 2010, the RTA’s annual pension cost of $1,082,300 and $1,564,306, respectively, for CalPERS was equal to the RTA’s required and actual contributions. The required contribution was determined as part of the June 30, 2008 actuarial valuation using the entry age normal actuarial cost method.

Annual Percentage Pension Cost of APC Net Pension

Year Ended (APC) Contributed Obligation

6/30/2008 1,653,888$ 100% -$ 6/30/2009 2,310,575 100% - 6/30/2010 1,564,306 100% - 6/30/2011 1,082,300 100% -

Actuarial Methods and Assumptions – The following information is as of the most recent actuarial valuation, in which the assumptions used are promulgated by CalPERS:

Retirement Program Valuation Date June 30, 2010

Actuarial Cost Method Entry Age Normal Cost Method

Amortization Method Level Percent of Payroll

Average Remaining Period 26 Years as of the Valuation Date

Asset Valuation Method 15 Year Smoothed Market

Actuarial Assumptions

Investment Rate of Return 7.75% (net of administrative expenses)

Projected Salary Increases 3.55% to 14.45% depending on Age, Service, and Type of Employment

Inflation 3.00%

Payroll Growth 3.25%

Individual Salary Growth A merit scale varying by duration of employment coupled with an assumed annual inflation growth of 3.00% and an annual production growth of 0.25%.

Funded Status and the Funding Progress – The following is funded status information for the plan as of June 30, 2010, the most recent actuarial valuation date:

Actuarial UAAL as aActuarial Accrued Unfunded Percentage

Actuarial Value of Liability (AAL) AAL Funded Covered of CoveredValuation Assets Entry Age (UAAL) Ratio Payroll Payroll

Date (a) (b) (b - a) (a/b) (c) [(b - a)/c]

6/30/2010 51,290,452$ 55,048,083$ 3,757,631$ 93.2% 15,111,698$ 24.9%

The schedule of funding progress, presented as Required Supplementary Information (RSI) following the notes to the financial statements, presents multi-year trend information about whether the actuarial value of plan assets are increasing or decreasing over time relative to the actuarial accrued liability for benefits.

Item 9 85

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NOTE 10 – POSTEMPLOYMENT BENEFITS OTHER THAN PENSIONS In addition to the pension benefits described above, the RTA provides postretirement health care benefits to all employees meeting certain selected criteria. Employees on the payroll as of June 22, 2006, who retire from the RTA with 5 years of CalPERS service will receive the same medical contribution (up to 100% HMO employee coverage plus dependent contribution) as active employees. Employees hired after June 22, 2006, will, upon retirement and 10 years of active service with the RTA and 5 years CalPERS service credit, receive up to 100% of HMO employee coverage, but not any dependent contribution. Currently 115 employees meet these eligibility requirements. See details below. The GASB issued Statement No. 43, Financial Reporting for Postemployment Benefit Plans Other than Pension Plans, and Statement No. 45, Accounting and Financial Reporting by Employers for Postemployment Benefits. The basic premise of the statements is that OPEB are earned by employees and should be recognized by the employer as the employee provides services. GASB Statement No. 45 requires employers to account for and report the annual cost of OPEB and the outstanding obligations and commitments related to them in the same manner as they currently do for pensions. The RTA implemented the provisions of GASB Statement No. 45 in the year beginning July 1, 2008, on a one-year retroactive basis. Prior to the implementation of GASB Statement No. 45, the RTA financed OPEB on a pay-as-you-go basis with expenditures recorded in the Statement of Activities and Changes in Net Assets. Expenses for postretirement health care benefits were recognized as medical premiums as paid. Plan Description: RTA participates in the California Employers’ Retiree Benefit Trust (CERBT), a trust established by Chapter 331 of the 1988 Statutes and initially funded in 2007. The purpose of the trust is to receive contributions from participating employers and establish separate employer prefunding accounts to pay for postemployment health care benefits. The CERBT is an agent multiple-employer plan as defined in GASB Statement No. 43 and is administered by CalPERS. The RTA plan currently has 104 retirees receiving benefits and a total of 310 active participants, all of which are not eligible to receive benefits. Following is a description of the current retiree benefit plan:

Union Employees hired on or before 6/22/06 Benefit Types Provided Medical only Duration of Benefits Lifetime Required Service 5 years CalPERS service credit Minimum Age 50 Dependent Coverage One or more, limited to contribution maximum of $390 RTA Contribution % Up to 100%

RTA Cap Highest Kaiser or Blue Cross HMO premium in Riverside or San Bernardino County

Union Employees hired after 6/22/06 Benefit Types Provided Medical only Duration of Benefits Lifetime

Required Service 10 years service with RTA & 5 years CalPERS service credit

Minimum Age 50 Dependent Coverage No RTA Contribution % Up to 100%

RTA Cap Highest Kaiser or Blue Cross HMO single premium in Riverside or San Bernardino County

Item 9 86

32

NOTE 10 – POSTEMPLOYMENT BENEFITS OTHER THAN PENSIONS (Continued)

Administrative Employees hired on or before 6/22/06 Benefit Types Provided Medical only Duration of Benefits Lifetime Required Service 5 years CalPERS service credit Minimum Age 50 Dependent Coverage One or more, limited to contribution maximum of $360 RTA Contribution % Up to 100%

RTA Cap Lowest Kaiser or Blue Cross HMO premium in Riverside County

Administrative Employees hired after 6/22/06 Benefit Types Provided Medical only Duration of Benefits Lifetime

Required Service 10 years service with RTA & 5 years CalPERS service credit

Minimum Age 50 Dependent Coverage No RTA Contribution % Up to 100%

RTA Cap Lowest Kaiser or Blue Cross single HMO premium in Riverside County

Annual OPEB Cost and Net OPEB Obligation: For the year ended June 30, 2011, the RTA’s annual OPEB cost for the plan was $644,669. The RTA’s annual OPEB cost, the percentage of annual OPEB cost contributed to the plan, and the net OPEB obligation for the year ended June 30, 2011, were as follows:

2011 2010

Annual required contribution 644,669$ 644,669$ Contributions made (683,916) (1,839,438)

Change in net OPEB obligation (39,247) (1,194,769)

Net OPEB obligation (asset), beginning of year (998,364) 196,405

Net OPEB obligation (asset), end of year (1,037,611)$ (998,364)$

Trend Information:

Annual Actual Net OPEBYear OPEB Employer Percentage Obligation

Ended Cost Contribution Contributed (Asset)

6/30/2009 9,030,532$ (8,885,562)$ 98% 196,405$ 6/30/2010 644,669$ (1,839,438)$ 285% (998,364)$ 6/30/2011 644,669$ (683,916)$ 106% (1,037,611)$

Item 9 87

33

NOTE 10 – POSTEMPLOYMENT BENEFITS OTHER THAN PENSIONS (Continued) Funded Status and Funding Progress: The funded status of the plan as of June 30, 2011, was as follows:


Actuarial Value of Liability (AAL) AAL Funded Covered of CoveredValuation Assets Entry Age (UAAL) Ratio Payroll Payroll

Date (a) (b) (b - a) (a/b) (c) [(b - a)/c]

November 1, 2007 -$ 16,647,000$ 16,647,000$ 0.0% 13,817,083$ 120.5%September 1, 2009 14,825,679$ 17,166,876$ 2,341,197$ 86.4% 15,215,027$ 15.4%

September 28, 2011 19,122,536$ 26,070,091$ 6,947,555$ 73.4% 14,513,880$ 47.9%

Actuarial valuations of an ongoing plan involve estimates of the value of reported amounts and assumptions about the probability of occurrence of events far into the future. Examples include assumptions about future employment, mortality, and the health care cost trend. Amounts determined regarding the funded status of the plan and the Annual Required Contributions of the RTA are subject to continual revision as actual results are compared with past expectations and new estimates are made about the future. The schedule of funding progress, presented as required supplementary information following the notes to the financial statements, will present multi-year trend information that shows whether the actuarial value of plan assets is increasing or decreasing over time relative to the actuarial accrued liability for benefits. Actuarial Methods and Assumptions: Actuarial valuations for an ongoing plan involve estimates of the value of reported amounts and assumptions about the probability of occurrence of events far into the future. Actuarially determined amounts are subject to continuous revision as actual results are compared to past expectations and new estimates are made about the future. Although the valuation results are based on values the RTA’s actuarial consultant believes are reasonable assumptions, the valuation result is only an estimate of what future costs may actually be and reflect a long-term perspective. Deviations in any of several factors, such as future interest rate discounts, medical cost inflation, Medicare coverage risk, and changes in marital status, could result in actual costs being greater or less than estimated.

In the actuarial valuation for the plan as of June 30, 2011, the entry age normal cost method was used. The allocation of OPEB cost is based on years of service. RTA used the level percentage of payroll method to allocate OPEB cost over years of service. Entry age is based on the average age at hire for eligible employees. The attribution period is determined as the difference between the average retirement age and the average age at hire. The present value of future benefits and present value of future normal costs are determined on an employee by employee basis and then aggregated. To the extent that different benefit formulas apply to different employees of the same class, the normal cost is based on the benefit plan applicable to the most recently hired employees (including future hires if a new benefit formula has been agreed to and communicated to employees). The actuarial assumptions included a 7.5% investment rate of return (net of administrative expenses), which is based on an assumed long-term return on plan assets and 100% funding through the CalPERS CERBT program, and an annual health care cost trend rate of 6% and 4% including a 3% inflation assumption. The actuarial value of assets were determined using actuarial value (as provided by CalPERS), plus the balance of contributions payable. The UAAL will be amortized as a level percentage of projected payroll assuming a 3% increase per year and no increases in staff or merit increases. The remaining amortization period is 30 years. Funding Policy: The contribution requirements of plan members and the RTA are established and may be amended by the RTA Board of Directors. These contributions are neither mandated nor guaranteed. The RTA has retained the right to unilaterally modify its payment for retiree health care benefits.

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34

NOTE 11 – CONTINGENCIES AND COMMITMENTS A. Lawsuits

The RTA is a defendant in various lawsuits. Although the outcome of these lawsuits is not presently determinable, it is the opinion of the RTA’s legal counsel and the RTA’s management that the resolution of these matters will not have a material adverse effect on the financial condition of the RTA.

B. Federal and State Grant Programs

The RTA participates in federal and state grant programs. These programs are audited by the RTA’s independent accountants in accordance with the provisions of the Federal Single Audit Act Amendments of 1996 and applicable state requirements. No cost disallowance is expected as a result of these audits; however, these programs are subject to further examination by the grantors. Awards which may be disallowed, if any, by the granting agencies cannot be determined at this time. The RTA expects such amounts, if any, to be immaterial.

C. Commitments

As of June 30, 2011 and 2010, in the opinion of RTA management, there were no outstanding matters that would have a significant effect on the financial position of the RTA.

NOTE 12 – TRANSPORTATION DEVELOPMENT ACT CONFORMANCE MATTERS The RTA is subject to the provision of the Public Utilities Code (PUC) Section 99270.1 and must maintain a minimum fare ratio of 17.09% and 16.85% in 2011 and 2010, respectively, of operating revenues over operating expenses. After allocation of indirect costs to each type of service and taking into consideration of certain cost exemption provisions of the TDA, the RTA’s fare ratio for the years ended June 30, 2011 and 2010, was 27.52% and 25.37%, respectively, as calculated below, which indicates that the RTA in the years ended June 30, 2011 and 2010, was in compliance with the provisions of PUC Section 99270.

2011 2010

Operating Revenues: 9,410,428$ 9,286,455$ Add:

Measure A - operating grant 2,310,058 1,014,861 CNG Revenue 250,102 - Lease/Other revenue - other nonoperating revenue 60,000 60,000 Shelter advertising - other nonoperating revenue 16,410 15,057 Gain on sale of assets 17,585 13,014 Federal Excise Tax Refund - other nonoperating revenue - 538,465 Investment income 73,744 108,344

CalPERS CERBT 363,231 685,874 Other Operating Revenue 3,166 -

Less: Fare revenues for exempt routes (61,423) (382,648)

Net operating revenues 12,443,301$ 11,339,422$

Operating Expenses: 55,795,408$ 68,749,228$ Less: Depreciation and amortization expense (9,630,139) (17,356,763)

Other grant fund expenses (560,455) (4,066,155) Operating expenses for exempt routes (395,565) (2,638,256)

Net operating expenses 45,209,249$ 44,688,054$

Fare Ratio 27.52% 25.37%

Item 9 89

REQUIRED SUPPLEMENTARY INFORMATION

Item 9 90

35

RIVERSIDE TRANSIT AGENCY REQUIRED SUPPLEMENTARY INFORMATION

FOR THE YEAR ENDED JUNE 30, 2011

PUBLIC EMPLOYEES’ RETIREMENT SYSTEM (PERS) SCHEDULE OF FUNDING PROGRESS


Actuarial Value of Liability (AAL) AAL Funded Covered of Covered Valuation Assets Entry Age (UAAL) Ratio Payroll Payroll

Date* (a) (b) (b - a) (a/b) (c) [(b - a)/c]

6/30/2008 44,343,082$ 46,528,134$ 2,185,052$ 95.3% 16,450,386$ 13.3%6/30/2009 47,651,978 51,329,048 3,677,070 92.8% 15,815,277 23.3%6/30/2010 51,290,452 55,048,083 3,757,631 93.2% 15,111,698 24.9%

* Based on the latest actuarial valuation.

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36

RIVERSIDE TRANSIT AGENCY REQUIRED SUPPLEMENTARY INFORMATION


SCHEDULE OF FUNDING PROGRESS OTHER POSTEMPLOYMENT BENEFITS

JUNE 30, 2011


Actuarial Value of Liability (AAL) AAL Funded Covered of Covered Valuation Assets Entry Age (UAAL) Ratio Payroll Payroll

Date* (a) (b) (b - a) (a/b) (c) [(b - a)/c]

November 1, 2007 -$ 16,647,000$ 16,647,000$ 0.0% 13,817,083$ 120.5%

September 1, 2009 14,825,679$ 17,166,876$ 2,341,197$ 86.4% 15,215,027$ 15.4%

September 28, 2011 19,122,536$ 26,070,091$ 6,947,555$ 73.4% 14,513,880$ 47.9%

* Based on the latest actuarial valuation.

Item 9 92

OTHER REPORT

Item 9 93

37

INDEPENDENT AUDITOR’S REPORT ON COMPLIANCE OVER FINANCIAL REPORTING BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED

IN ACCORDANCE WITH THE STATUTES, RULES, AND REGULATIONS OF THE CALIFORNIA TRANSPORTATION DEVELOPMENT ACT

AND THE ALLOCATION INSTRUCTIONS AND RESOLUTIONS OF THE TRANSPORTATION COMMISSION

To the Board of Directors of the Riverside Transit Agency Riverside, California We have audited the financial statements of the Riverside Transit Agency (RTA) as of and for the year ended June 30, 2011, and have issued our report thereon dated October 27, 2011. 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. As part of obtaining reasonable assurance about whether the RTA’s financial statements are free of material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grants, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. Additionally, we performed tests to determine that allocations made and expenditures paid by the RTA were made in accordance with the allocation instructions and resolutions of the RTA and in conformance with the California Transportation Development Act. Specifically, we performed each of the specific tasks identified in the California Code of Regulations Sections 6666 and 6667 that are applicable to the RTA. In connection with our audit, nothing came to our attention that caused us to believe the RTA failed to comply with the Statutes, Rules, and Regulations of the California Transportation Development Act and the allocation instructions and resolutions of the Transportation Commission. 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. Also as part of our audit, we performed tests of compliance to determine whether certain state funds were received and expended in accordance with the applicable bond act and state accounting requirements. In November 2006, California Voters passed a bond measure enacting the Highway Safety, Traffic Reduction, Air Quality, and Port Security Bond Act of 2006. Of the $19.925 billion of state general obligation bonds authorized, $4 billion was set aside by the State as instructed by statute as the Public Transportation Modernization, Improvement, and Service Enhancement Account (PTMISEA). These funds are available to the California Department of Transportation for intercity rail projects and to transit operators in California for rehabilitation, safety or modernization improvements, capital service enhancements or expansions, new capital projects, bus rapid transit improvements, or for rolling stock procurement, rehabilitation, or replacement.

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38

During the fiscal year ended June 30, 2011, the Agency earned interest of $38,666 on deposits of PTMISEA funds. As of June 30, 2011, PTMISEA funds received and expended were verified in the course of our audit as follows:

Schedule of PTMISEA Bond 1B Funds For the Year Ended June 30, 2011

Description Amount

Balance – beginning of the year $ 8,350,637 Receipts: PTMISEA receipts - Interest accrued 7/1/2010 through 6/30/2011 38,666 Expenses: PTMISEA expenditures 801,500 Balance – end of year $ 7,587,803

This report is intended solely for the information and use of management, the California Department of Transportation, and the State Controller’s Office and is not intended to be and should not be used by anyone other than these specified parties. BROWN ARMSTRONG ACCOUNTANCY CORPORATION Bakersfield, California October 27, 2011

Item 9 95

RIVERSIDE TRANSIT AGENCY

SINGLE AUDIT REPORT


Item 9 96

RIVERSIDE TRANSIT AGENCY SINGLE AUDIT REPORT

TABLE OF CONTENTS Page Independent Auditor’s Report on Internal Control over Financial Reporting and on Compliance and Other Matters Based on an Audit of the Basic Financial Statements Performed in Accordance with Government Auditing Standards ............................................................................................... 1 Independent Auditor’s Report on Compliance with Requirements That Could Have a Direct and Material Effect on Each Major Program and on Internal Control Over Compliance in Accordance with OMB Circular A-133 ....................................................... 3 Financial Statements: Schedule of Expenditures of Federal Awards ............................................................................ 5 Notes to the Schedule of Expenditures of Federal Awards ....................................................... 6 Findings and Questioned Costs Section: Schedule of Findings and Questioned Costs ............................................................................. 8

Item 9 97

1

INDEPENDENT AUDITOR’S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED

ON AN AUDIT OF THE BASIC FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS

To the Board of Directors Riverside Transit Agency Riverside, California We have audited the basic financial statements of the Riverside Transit Agency (RTA) as of and for the year ended June 30, 2011, and have issued our report thereon dated October 27, 2011. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Internal Control Over Financial Reporting In planning and performing our audit, we considered the RTA’s internal control over financial reporting as a basis for designing our auditing procedures for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the RTA’s internal control over financial reporting. Accordingly, we do not express an opinion on the effectiveness of the RTA’s internal control over financial reporting. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct misstatements on a timely basis. A material weakness is a deficiency, or 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. Our consideration of internal control over financial reporting was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control over financial reporting that might be deficiencies, significant deficiencies, or material weaknesses. We did not identify any deficiencies in internal control over financial reporting that we consider to be material weaknesses, as defined above. Compliance and Other Matters As part of obtaining reasonable assurance about whether the RTA’s financial statements are free of material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit and, accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards.

Item 9 98

2

This report is intended solely for the information and use of management, the Board of Directors, federal awarding agencies, and pass-through entities and is not intended to be and should not be used by anyone other than these specified parties. However, this report is a matter of public record and its distribution is not limited. BROWN ARMSTRONG ACCOUNTANCY CORPORATION Bakersfield, California October 27, 2011

Item 9 99

3

INDEPENDENT AUDITOR’S REPORT ON COMPLIANCE WITH REQUIREMENTS THAT COULD HAVE A DIRECT AND MATERIAL EFFECT ON EACH MAJOR

PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH OMB CIRCULAR A-133

To the Board of Directors Riverside Transit Agency Riverside, California Compliance We have audited the Riverside Transit Agency’s (RTA) compliance with the types of compliance requirements described in the U.S. Office of Management and Budget (OMB) Circular A-133 Compliance Supplement that could have a direct and material effect on each of the RTA’s major federal programs for the year ended June 30, 2011. The RTA’s major federal programs are identified in the summary of auditor’s results section of the accompanying schedule of findings and questioned costs. Compliance with the requirements of laws, regulations, contracts, and grants applicable to each of its major federal programs is the responsibility of the RTA’s management. Our responsibility is to express an opinion on the RTA’s compliance based on our audit. We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and OMB Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations. Those standards and OMB Circular A-133 require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types of compliance requirements referred to above that could have a direct and material effect on a major federal program occurred. An audit includes examining, on a test basis, evidence about the RTA’s compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion. Our audit does not provide a legal determination of the RTA’s compliance with those requirements. In our opinion, the Riverside Transit Agency complied, in all material respects, with the requirements referred to above that could have a direct and material effect on each of its major federal programs for the year ended June 30, 2011. Internal Control Over Compliance The management of the RTA is responsible for establishing and maintaining effective internal control over compliance with requirements of laws, regulations, contracts, and grants applicable to federal programs. In planning and performing our audit, we considered the RTA’s internal control over compliance with the requirements that could have a direct and material effect on a major federal program to determine our auditing procedures for the purpose of expressing our opinion on compliance and to test and report on internal control over compliance in accordance with OMB Circular A-133, but not for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, we do not express an opinion on the effectiveness of the RTA’s internal control over compliance.

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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. Our consideration of internal control over compliance was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control over compliance that might be deficiencies, significant deficiencies, or material weaknesses. We did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses, as defined above. Schedule of Expenditures of Federal Awards We have audited the financial statements of the Riverside Transit Agency as of and for the year ended June 30, 2011, and have issued our report thereon dated October 27, 2011. Our audit was performed for the purpose of forming our opinions on the financial statements that collectively comprise Riverside Transit Agency’s 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 has been subjected to the auditing procedures applied in the audit of the basic financial statements and, in our opinion, is fairly stated, in all material respects, in relation to the basic financial statements taken as a whole. This report is intended for the information of management, the Board of Directors, federal awarding agencies, and pass-through entities and is not intended to be and should not be used by anyone other than these specified parties. However, this report is a matter of public record and its distribution is not limited. BROWN ARMSTRONG ACCOUNTANCY CORPORATION Bakersfield, California October 27, 2011

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FINANCIAL STATEMENTS

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See accompanying notes to the Schedule of Expenditures of Federal Awards. 5

RIVERSIDE TRANSIT AGENCY SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS


Cumulative FederalFederal Expenditures

Expenditures IncurredProgram or Incurred for the

Federal Grantor / Pass-Through Grantor / CFDA Award Through Year EndedProgram Title Number Amount June 30, 2011 June 30, 2011

U.S. Department of Transportation/Federal Transit Administration

Capital Investment Grants:

03-0549 20.500 2,466,994$ 2,466,994$ -$ 03-0703 * 20.500 3,495,329 1,214,388 43,489 03-0752 20.500 1,335,471 - - 03-0763 20.500 291,262 - - 03-0781 20.500 340,123 1,600 - 04-0036 * 20.500 1,332,679 595,067 164,688 04-0082 20.500 195,499 88,510 - 04-0121 * 20.500 895,000 343,000 25,633 04-0154 * 20.500 2,684,328 808,274 708,292

Formula Grants - Capital:

90-Y272 * 20.507 5,132,527 5,132,527 666 90-Y337 * 20.507 4,386,553 4,302,633 226,940 90-Y403 * 20.507 2,334,490 2,301,193 23,815 90-Y523 * 20.507 4,454,445 4,098,807 38,040 90-Y614 * 20.507 6,976,842 6,662,219 382,389 90-Y580 20.507 221,928 - - 90-Y691 * 20.507 2,315,962 1,404,693 1,339,122 95-X060 * 20.507 1,352,472 1,352,472 125,488 96-X043 ARRA * 20.507 1,343,989 1,214,948 478,660 90-Y781 * 20.507 5,587,730 1,916,584 929,677 90-Y866 * 20.507 2,372,052 98,199 98,199

Total capital grants 49,515,675 34,002,108 4,585,098

Operating Grants:

96-X043 (ARRA Sec. 5307) * 20.507 16,121,047 16,121,047 1,154,718 90-Y781 (Reg Sec. 5307) * 20.507 3,125,351 3,125,351 448,376 90-Y866 (Reg Sec. 5307) * 20.507 12,298,256 11,302,608 11,302,608 37-X096 (Sec. 5316 JARC) * 20.516 531,106 531,106 259,476 37-X106 (Sec. 5316 JARC) * 20.516 272,828 17,053 17,053 37-X109 (Sec. 5316 JARC) * 20.516 1,044,200 442,910 304,952 57-X024 (Sec. 5317 New Freedom) * 20.521 132,582 132,581 64,673 57-X037 (Sec. 5317 New Freedom) * 20.521 591,869 474,413 259,611

Total operating grants 34,117,239 32,147,069 13,811,467

Total Federal Transit Administration 83,632,914 66,149,177 18,396,565

Passed-Through the State of California:

Department of Transportation/Federal Transit Administration -

Operating: FY 2011 Regular Sec. 5311 * 20.509 426,208 426,208 426,208 Operating: FY 2011 ARRA Sec. 5311 * 20.509 679,278 282,867 142,226 Capital: FY 2011 ARRA Sec. 5311 * 20.509 50,000 50,000 50,000 Operating: FY 2011 JARC Sec. 5316 * 20.516 159,580 106,482 22,967

Total Federal Awards 84,947,980$ 67,014,734$ 19,037,966$

* Major Program

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RIVERSIDE TRANSIT AGENCY NOTES TO THE SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS


NOTE 1 – REPORTING ENTITY The Riverside Transit Agency (RTA) was established in March 1977 as a Joint Powers Agency (JPA) under authority of Title I, Division 7, Chapter 5, as amended by the Government Code of the State of California. By joint exercise of their common power, the County of Riverside and the nine cities of Western Riverside County created the RTA to serve as a separate public transportation agency. As of June 30, 2011, RTA serves as a public transportation agency to the County of Riverside and seventeen cities of Western Riverside. Members of the JPA reserve the right to provide transportation services within their respective jurisdictions, while the RTA serves as a unifying umbrella agency, coordinating transportation services throughout Western Riverside County. The RTA owns, maintains, and operates (directly or through contracts with other operators) the public transit system of Western Riverside County. The RTA is a special purpose government with no component units and is eligible for funding under Section 99200 et. seq. of the California Public Utilities Code. NOTE 2 – SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS The accompanying Schedule of Expenditures of Federal Awards (Schedule) presents the activity of all Federal award programs of the RTA. All federal awards received directly from Federal agencies as well as Federal awards passed through from other government agencies are included on the Schedule. NOTE 3 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Accounting The accompanying Schedule is presented using the accrual basis of accounting, which is described in Note 1 to the RTA’s financial statements. Schedule of Expenditures of Federal Awards The accompanying Schedule presents the activity of all Federal financial assistance programs of the RTA. Federal financial assistance received directly from Federal agencies as well as Federal financial assistance passed through the State of California are included in the Schedule. The Schedule was prepared from only the accounts of various grant programs and, therefore, does not present the financial position or results of operations of the RTA. NOTE 4 – RELATIONSHIP TO FINANCIAL STATEMENTS Federal award monies are reported in the RTA’s financial statements as revenues from Federal operating and capital assistance grants.

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NOTE 5 – SUMMARY OF GRANTS The RTA receives various Federal grant awards from the Department of Transportation - Federal Transit Administration. The following is a summary of the grant programs. Federal Transit - Capital Investment Grants (CFDA #20.500) Funds are provided to assist in financing the acquisition, construction, reconstruction, and

improvement of facilities, rolling stock and equipment for use in mass public transportation service, and in coordinating service with highway and other transportation in such areas.

Federal Transit - Formula Grants (CFDA #20.507) Funds are provided to assist in financing the acquisition, construction, cost-effective leasing,

maintenance, planning, and improvement of facilities and equipment for use in mass transportation service, and for urbanized areas with populations under 200,000, to assist with the payment of operating expenses to improve or to continue mass transportation service.

Federal Transit - Section 5311 Operating Grant (CFDA #20.509) Funds are provided to improve, initiate, or continue public transportation service in non-urbanized

areas by providing financial assistance for operating and administrative expenses and for the acquisition, construction, and improvement of facilities and equipment. Also, funds are available to provide technical assistance for rural transportation providers.

Federal Transit - Section 5316 Job Access Reverse Commute (JARC) (CFDA #20.515)

Funds are provided to improve access to employment and employment related activities for low-income individuals and welfare recipients and transport residents of urbanized areas and non-urbanized areas to suburban employment opportunities regardless of income.

Federal Transit - Section 5317 New Freedom (CFDA #20.517) Funds are provided for new public transportation services to overcome existing barriers facing Americans with disabilities seeking integration into the workforce and full participation into society while expanding the transportation mobility options available to persons with disabilities beyond the requirements of the Americans with Disabilities Act of 1990.

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FINDINGS AND QUESTIONED COSTS SECTION

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RIVERSIDE TRANSIT AGENCY SCHEDULE OF FINDINGS AND QUESTIONED COSTS

FOR THE YEAR ENDED JUNE 30, 2011 I. Summary of Auditor’s Results

Financial Statements Type of auditor’s report issued: Unqualified Internal control over financial reporting: Material weakness identified? Yes X No Reportable conditions identified that are not considered to be material weaknesses? Yes X None reported Noncompliance material to financial statements noted? Yes X No Federal Awards Internal control over major federal programs: Material weakness identified? Yes X No Reportable conditions identified that are not considered to be material weaknesses? Yes X None reported Type of auditor’s report issued on compliance for major programs: Unqualified Any audit findings disclosed that are required to be reported in accordance with OMB Circular A-133, Section .510(a)? Yes X No Identification of major programs:

CFDA Number(s) Name of Federal Program or Clusters

20.500 Federal Transit Administration - Capital Investment Grants 20.507 Federal Transit Administration - Formula Grants 20.509 Federal Transit Administration - Section 5311 20.516 Transit Services Program Cluster - JARC 20.521 Transit Services Program Cluster - New Freedom

Dollar threshold used to distinguish Type A and B programs: $571,139 Auditee qualified as low risk auditee? X Yes No

II. Findings Relating to Financial Statements Required Under GAGAS

None.

III. Federal Award Findings and Questioned Costs None.

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IV. State Award Findings and Questioned Costs None.

V. A Summary of Prior Audit (all June 30, 2010) Findings and Current Year Status Follows

None.

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RIVERSIDE TRANSIT AGENCY 1825 Third St.

Riverside, CA 92507

November 17, 2011

TO: BOARD OF DIRECTORS THRU: Larry Rubio, Chief Executive Officer FROM: Vince Rouzaud, Chief Procurement and Logistics Officer SUBJECT: Authorization to Pursue Medi-Cal Reimbursement for Transportation Services

Associated with Medi-Cal Covered Services Summary: To assure access to basic healthcare, federal Medicaid rules require state

health departments to guarantee that all Medicaid recipients can travel to and from covered medical services. Medi-Cal is California’s Medicaid program and is administered by the state’s Department of Health Care Services (DHCS) through the Local Government Authority (LGA). The LGA for Riverside County is the Riverside County Department of Health Services.

The state’s Medi-Cal program is a need-based public health insurance program

insuring approximately 6.5 million Californians and is funded jointly with state and federal Medicaid funds. Medi-Cal allows for reimbursement of transportation expenses to eligible participants for Medi-Cal covered services.

Background Staff recently became aware that transportation services for Medi-Cal recipients

are a covered expense under California’s Medi-Cal program. Investigation has revealed a potential opportunity for the Agency to seek partial reimbursement for customers who use Dial-A-Ride (DAR) services and who are Medi-Cal recipients.

The state’s Medi-Cal program allows for reimbursement of transportation costs

under the category “Assisting with Access” as a Medi-Cal Administrative Activity (MAA). Under this category, transportation to and from Medi-Cal covered services are reimbursable at 50% of the net cost, that is the actual cost to deliver the service less any revenues collected from the eligible participant.

Examples of Agency services that would be covered include transportation to

dialysis, chemotherapy treatment, doctor and pharmacy visits, and any other service directly related to Medi-Cal covered treatments. Currently, the net cost of providing a trip on DAR is approximately $24, allowing for a potential reimbursement from Medi-Cal of up to $12 per passenger trip.

In order to participate in a Medi-Cal reimbursement program, staff would work

with the Riverside County Department of Health Services to develop a Memorandum of Agreement (MOA) defining the MAA activities performed by the Agency. This would include developing a methodology that the Agency

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would use to seek reimbursement for its costs. For its part, the County would receive a percentage of the overall billings to cover all administrative expenses associated with the MOA. The Agency will be seeking new funding; there would be no impact to existing County Medi-Cal funds.

As a part of the program, an MAA Claiming Plan would be developed and

approved by Medi-Cal, and the Agency would assign an MAA Coordinator to interact with the County LGA staff and ensure compliance with all MAA county, state, and federal guidelines. While these requirements are stringent, the potential reimbursement amount may be significant.

Next Steps

If approved by the Board, staff will continue to engage in discussions with the County on developing the program’s infrastructure. This would include identifying matching revenue sources, logistics, reporting requirements, project administration, etc. As this is a complex process involving different state and local agencies, staff met with the statewide LGA consultant that assists the County on these matters. He has agreed to assist RTA with the development and implementation process for the MOA and Claiming Plan. While still in the preliminary stages, given the information already gathered from peer agencies, it appears there is an opportunity for the Agency to participate in a Medi-Cal reimbursement program for transportation services in Riverside County.

Fiscal Impact:

Fiscal Impact will be determined and reported back to the Board of Directors. Committee Recommendation:

This item was discussed at the Board Administration and Operations Committee meeting of November 2, 2011. The committee members voted unanimously to recommend this item to the full Board of Directors for their consideration.

Recommendation:

Approve and recommend this item to the full Board of Directors for their consideration as follows: • Authorize staff to pursue reimbursement opportunities for transportation

services provided to Medi-Cal recipients for Medi-Cal covered services.

• Authorize staff to work with the consultant representing the Riverside County Department of Health Services on a Memorandum of Agreement for the Agency’s participation in a Medi-Cal reimbursement program.

• Direct staff to return to the Board with a report detailing staff’s findings.

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Riverside, CA 92507

November 17, 2011



FROM: Vince Rouzaud, Chief Procurement and Logistics Officer

SUBJECT: Authorization to Donate One (1) Surplus Trolley Vehicle to the Ramona Bowl Amphitheatre

Summary: The Agency recently received a request from the Ramona Bowl Amphitheatre, a non-profit organization located in Hemet, CA, asking the Agency to consider the donation of one (1) surplus trolley vehicle.

The vehicle in question is a 1994, Chance trolley. This trolley is the lone diesel-powered trolley in the Agency’s fleet and because of South Coast Air Quality Management District (SCAQMD) regulations, can no longer be operated in revenue transit service.

The trolley has exceeded its useful life, is fully depreciated and is awaiting disposition.

Located on the side of a hill, the Ramona Amphitheatre sits on 160 acres with the parking lot area located at the base of the hill. The trolley will be used to transport patrons from the lower parking lot area to the Amphitheatre.

Fiscal Impact: None.


This item was discussed at the Board Administration and Operations Committee meeting of November 2, 2011. The committee members voted unanimously to recommend this item to the full Board of Directors for their consideration.

Recommendation: Approve and recommend this item to the full Board of Directors for their consideration as follows:

• Authorize staff to donate one (1) surplus trolley vehicle to the Ramona Bowl Amphitheatre.

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Riverside, CA 92507

November 17, 2011

TO: BOARD OF DIRECTORS THRU: Larry Rubio, Chief Executive Officer FROM: Laura Murillo, Director of Human Resources

Craig Fajnor, Chief Financial Officer SUBJECT: Authorize Change in Employee Paid California Public Employees’

Retirement System (CalPERS) Member Contributions and Adopt Resolution 2011-19 to Formalize Modification

Summary: The Agency provides a defined benefit, or pension, plan through

CalPERS. Pension plans – more importantly, pension reform – are a hot topic today due to the economic downturn and outlook. Pension reform concerns center around four areas:

• “Air Time” – The ability to purchase up to five years additional years of service credit for time not worked.

• “Spiking” – The ability to increase the final compensation that determines the retirement benefit an individual will receive by “cashing out” accumulated paid time off and/or receiving substantial pay increases in the final year of employment.

• “Formula” – The pension-benefit calculation that includes age and specified percentage to determine a retirement benefit.

• “Employee Contribution Payment” – The way in which employee contributions to the pension are paid (i.e. employee versus employer paid).

Purchasing of Additional Service Credit (Airtime) The Agency is required by CalPERS to offer this opportunity to employees. To date, the Agency has experienced limited exposure in this area as approximately six employees (current and retired) have utilized this opportunity since it became available. Governor Brown is working to eliminate this offering.

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Calculation of Wages to Determine Retirement Benefit (Spiking) CalPERS defines final compensation for retirement benefits as full-time employee monthly pay rate (and, if applicable, special compensation), but does not include overtime or paid time off payouts. The Agency’s plan prevents “spiking” as final compensation is calculated based on the average highest 36 month period versus a 12 month period. Pension Plan (Formula) The Agency’s benefit formula is 2% at 55. For comparative purposes, attached please find list of benefit formulas of similarly structured organizations. Payment of Plan Contributions (Employee Contribution Payment) A pension plan generally has an employer and an employee contribution component. For the purposes of this analysis, staff focused on the payment of the employee contribution component. The Agency’s employee contribution for administrative employees is paid as follows: Agency Employee

Contribution % % Paid by Employer

% Paid by Employee

RTA 7% 100% 0% For comparative purposes, payment of the employee contribution by similarly structured organizations is outlined below: Agency Employee

Contribution % % Paid by Employer

% Paid by Employee

OMNITRANS 7% 100% 0% OCTA Contribution varies

based on entry age into their retirement system. Ranges from

100% 0%

RCTC 8% 2 Tier • 100% for

those hired on or before November 28, 2003

• 87.5% for those hired after November 28, 2003

2 Tier • 0% for those

hired on or before November 28, 2003

• 12.5% for those hired after November 28, 2003

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Agency Employee Contribution %

% Paid by Employer

% Paid by Employee

WRCOG 8% 2 Tier • 100% for

those hired before July 1, 2011

• 0% for those hired on or after July 1, 2011

2 Tier • 0% for those

hired before July 1, 2011

• 100% for those hired on or after July 1, 2011

In an effort to be proactive and to remain consistent with our forward-looking and precautionary business approach, the Board directed staff to assess the Agency’s payment of the employee contribution of the pension plan with an eye on future savings. After an analysis of various scenarios, staff recommends changing the payment of the Administrative employee contribution as follows:

Tier 1 Grandfather pension-eligible existing employees as of June 30, 2011 by having the Agency continue to pay 100% of the 7% employee contribution. Tier 2 Require pension-eligible employees hired on or after July 1, 2011 to pay 100% of the 7% employee contribution starting January 1, 2012, with no retroactivity.

The prospective savings of moving to a 2-tier system is approximately $1,450,000 over the next 10 years. If approved, this change would require the Board of Directors to adopt the attached resolution that must be filed with CalPERS.

Fiscal Impact: Establishing a two-tier system for employee paid CalPERS member contributions would result in an estimated savings of $1,450,000 over the next 10 years.

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The Executive Committee fully supported this policy change and recommended this item to the full Board of Directors for their consideration.

Recommendation: Authorize change in employee paid CalPERS member contributions and adopt Resolution 2011-19 to formalize modification.

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ATTACHMENT

BENEFIT FORMULAS

Agency Benefit Formula Final Compensation OMNITRANS 2% at 55 Based on average

highest 36 month period

Orange County Transportation Authority (OCTA) 1

2 Tiers • 2% at 57 (pre-

September 1979)

• 1.67 at 57.5 (post-September 1979)

2 Tiers • Based on highest 12

month period • Based on average

highest 36 month period

Riverside County Transportation Commission (RCTC)

2.7% at 55 Based on highest 12 month period

Western Riverside Council of Governments (WRCOG)

2.7% at 55 Based on highest 12 month period

1 OCTA’s pension plan is offered through Orange County Employees Retirement System (OCERS)

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RESOLUTION NO. 2011-19 RESOLUTION FOR EMPLOYER PAID MEMBER CONTRIBUTIONS

WHEREAS, the governing body of the Riverside Transit Agency has the authority to implement Government Code Section 20691;

WHEREAS, the governing body of the Riverside Transit Agency has a written labor policy or agreement which specifically provides for the normal member contributions to be paid by the employer;

WHEREAS, one of the steps in the procedures to implement Section 20691 is the adoption by the governing body of the Riverside Transit Agency of a Resolution to commence said Employer Paid Member Contributions (EPMC);

WHEREAS, the governing body of the Riverside Transit Agency has identified the following conditions for the purpose of its election to pay EPMC:

• This benefit shall apply to all eligible Administrative employees.

• This benefit shall consist of paying 7% of the normal member contributions as EPMC for eligible employees hired prior to July 1, 2011.

• This benefit shall consist of paying 0% of the normal member contributions as EPMC for eligible employees hired on or after to July 1, 2011.

• The effective date of this Resolution shall be January 1, 2012.

NOW, THEREFORE, BE IT RESOLVED that the governing body of the Riverside Transit Agency elects to pay EPMC, as set forth above.

RIVERSIDE TRANSIT AGENCY APPROVED AS TO FORM:

____________________________ _________________________

Bob Buster Kennard R. Smart, Jr. Chairman of the Board of Directors Agency General Counsel

CERTIFICATION

The undersigned duly qualified Clerk of the Board of Directors of the Riverside Transit Agency certifies that the foregoing is a true and correct copy of a Resolution, adopted at a legally convened meeting of said Board of Directors held on November 17, 2011.

ATTEST: _________________________ Natalie Gomez Clerk of the Board of Directors

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Riverside, CA 92507

November 17, 2011

TO: BOARD OF DIRECTORS THRU: Larry Rubio, Chief Executive Officer FROM: Jim Kneepkens, Director of Marketing SUBJECT: Transportation NOW Update Summary: Transportation NOW has five chapters: Corona/Norco/District 2,

Greater Riverside, Moreno Valley/Perris, San Gorgonio Pass and Southwest. Each chapter meets monthly at a location convenient to the membership. Attendance includes transit users, elected officials, transit advocates, community activists and Riverside Transit Agency staff. This report summarizes the activities of each chapter for the month of October, 2011.

Corona/Norco/District 2 Chapter: City of Corona Transportation

Planning Supervisor Brian Champion gave a detailed 3-year ridership report for Corona Cruiser. Recent trends in public transportation ridership were discussed. Corona Councilmember Jason Scott discussed the Big Belly Solar intelligent waste & recycling collection system which may be appropriate for transit centers and major bus stops. Discussion of the chapter’s transit application contest continued.

Greater Riverside Chapter: The group discussed ways to promote stuff-a-bus toy drives during the holiday season, and supported efforts by the Arlington Business Partnership to install bus shelters in Riverside. Members also discussed progress on finding more lunch sponsors and agreed to change the chapter’s meeting time to 3:30 p.m. to accommodate member schedules. Moreno Valley/Perris Chapter: The chapter received an overview of recent FTA grant awards for the purchase of Dial-A-Ride buses and facility rehabilitations. The chapter discussed technology for future bus purchases including contactless fare payment, Wi-Fi internet and traffic signal priority for future bus rapid transit applications.

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San Gorgonio Pass Area Chapter: The chapter continued discussion about the consolidation of Pass Transit cities operating one transit system, explored ways to attract more students and senior citizens to public transportation, and the potential for Amtrak to extend its line from Fullerton to the Coachella Valley. Southwest Chapter: The chapter received a presentation from RTA senior planner Lorelle Moe-Luna on bus stops and transit design. Lorelle discussed in detail what to look for in development projects, transit design goals and provided examples of how to develop pedestrian and transit-friendly design. The chapter also discussed the Historic Highway 395 Corridor Study for Southwest Riverside County, a joint effort among the Cities of Lake Elsinore, Murrieta, Temecula and Wildomar. A future presentation is planned.

Recommendation:

Receive and file.

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riverside transit agency board of directors meeting · members of the public may address the board...

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