April 3, 2019 2:00 p.m.

AGENDA

Board Budget and Finance Committee Meeting

Riverside Transit Agency – Board Room 1825 Third Street

Riverside, CA 92507

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 Riverside Transit Agency Board of Directors during the meeting, should contact the Riverside Transit Agency Clerk of the Board, telephone number (951) 565-5044, no fewer than two business days prior to this meeting to enable the Riverside Transit Agency to make reasonable arrangements to assure accessibility or language assistance for this meeting. Agenda item descriptions are intended to provide members of the public a general summary of business to be conducted or discussed. Posting of any recommended action on an agenda item does not indicate what action will be taken. The Board of Directors may take any action it believes is appropriate on the agenda item and is not limited in any way by the notice of any recommendation. All documents related to any agenda item are available for public inspection at www.riversidetransit.com or through the Clerk of the Board’s office at the Riverside Transit Agency, 1825 Third Street, Riverside, CA 92507. ITEM RECOMMENDATION

1. CALL TO ORDER 2. SELF-INTRODUCTIONS

BUDGET AND FINANCE COMMITTEE PAGE 2 APRIL 3, 2019

ITEM RECOMMENDATION

3. 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.

4. APPROVAL OF MINUTES – MARCH 6, 2019

COMMITTEE MEETING (P.3) APPROVE

5. CASH FLOW PROJECTIONS (P.6) RECEIVE AND FILE 6. AUTHORIZATION TO EXERCISE OPTION YEARS

ONE AND TWO ON AGREEMENT NO. 15-001 WITH EMPIRE TRANSPORTATION FOR FIXED ROUTE AND REGIONAL COMMUTER BUS SERVICES (COMMUTERLINK) (P.8) APPROVE

7. AUTHORIZATION TO CLOSE PUBLIC HEARING AND ADOPT PROPOSED FARE STRUCTURE (P.13) APPROVE

8. BOARD MEMBER COMMENTS

9. ANNOUNCEMENTS

10. NEXT MEETING

Wednesday, May 1, 2019 2:00 p.m. Riverside Transit Agency 1825 Third Street

Riverside, CA 92507

11. MEETING ADJOURNMENT

RTA BOARD BUDGET AND FINANCE COMMITTEE MEETING Minutes

March 6, 2019

1. CALL TO ORDER

Committee Chair Linda Krupa called the Board Budget and Finance Committeemeeting to order at 2:00 p.m., on March 6, 2019, in the RTA Board Room.

2. SELF INTRODUCTIONS

Self-introductions of those in attendance took place.

Committee Members Attending

1. Linda Krupa, City of Hemet2. Berwin Hanna, City of Norco3. Linda Molina, City of Calimesa4. Jeremy Smith, City of Canyon Lake5. Anthony Kelly, Jr., City of Jurupa Valley6. Malcolm Corona, City of Perris7. Bridgette Moore, City of Wildomar8. 1Michelle DeArmond, County of Riverside, District III9. 2Barry Busch, County of Riverside, District V

RTA Staff

1. Larry Rubio, Chief Executive Officer2. Tammi Ford, Clerk of the Board3. Tom Franklin, Chief Operating Officer4. Craig Fajnor, Chief Financial Officer5. Vince Rouzaud, Chief Procurement and Logistics Officer6. Laura Camacho, Chief Administrative Services Officer7. Rohan Kuruppu, Director of Planning8. Adam Chavez, Director of Maintenance9. Jim Kneepkens, Director of Marketing

10. Rick Kaczerowski, Director of IT11. Rick Majors, Director of Risk Management12. Natalie Zaragoza, Director of Contracts13. Kristin Warsinski, Grants Manager14. Melissa Blankenship, Contracts Manager15. Eric Ustation, Government Affairs Manager16. Brad Weaver, Media & Public Relations Manager17. Lisa Almilli, Mobility Manager

1Alternate for Chuck Washington, County of Riverside, District III 2Alternate for Jeff Hewitt, County of Riverside, District V

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18. Yesenia Felix, HR Clerk19. Joan Hepworth, Executive Assistant

3. PUBLIC COMMENTS – NON-AGENDA ITEMS

None.

4. APPROVAL OF MINUTES – FEBRUARY 6, 2019 COMMITTEE MEETING

M/S/C (HANNA/MOORE) approving the February 6, 2019 committee meetingminutes.

The motion carried unanimously.

Director Michelle DeArmond arrived to the meeting at 2:02 p.m.

5. CASH FLOW PROJECTIONS

Mr. Fajnor presented the cash flow projections which were received and filed.

Director Anthony Kelly, Jr. arrived to the meeting at 2:05 p.m.

6. QUARTERLY CAPITAL STATUS

Mr. Fajnor presented the quarterly capital status which was received and filed.

7. AUTHORIZATION TO AWARD AGREEMENT NO. 19-019 TO HARDY ANDHARPER, INC. FOR THE MAGNOLIA AVENUE BUS TURNOUT AT GALLERIAAND TYLER

M/S/C (KELLY/MOLINA) approving and recommending this item to the full Boardof Directors for their consideration as follows:

• Authorize staff to award Agreement No. 19-019 to Hardy and Harper, Inc.for the Magnolia Avenue bus turnout at Galleria and Tyler in the amount of$174,198 with a ten-percent contingency of $17,420 for a total projectbudget amount of $191,618.

The motion carried unanimously.

8. BOARD MEMBER COMMENTS

Board member comments were made by Directors Michelle DeArmond, LindaMolina and Committee Chair Linda Krupa.

9. ANNOUNCEMENTS

An announcement was made by Mr. Larry Rubio.

Item 4 4

10. NEXT MEETING

Wednesday, April 3, 2019, 2:00 p.m.Riverside Transit AgencyBoard Room1825 Third StreetRiverside, CA 92507

11. MEETING ADJOURNMENT

The meeting was adjourned at 2:17 p.m.

Item 4 5

RIVERSIDE TRANSIT AGENCY 1825 Third Street

Riverside, CA 92507

April 3, 2019

TO: BOARD BUDGET AND FINANCE COMMITTEE

THRU: Larry Rubio, Chief Executive Officer

FROM: Craig Fajnor, Chief Financial Officer

SUBJECT: Cash Flow Projections

Summary: The Agency develops cash flow projections for the entire fiscal year representing weekly increments. Due to the size of the report, it is difficult to portray the entire fiscal year.

The attached report represents actual cash performance through late March with projections through May. This reporting period covers the first eleven months of FY19. There are no cash flow issues anticipated during this reporting period.

However, with uncertainty regarding when Federal funding will be approved and available for reimbursement, the Board is reminded that an advance of $22 million of Local Transportation Funds from the Riverside County Transportation Commission was approved and will be used to cover potential cash flow shortages in late FY19 and early FY20 as necessary.

Recommendation:

Receive and file.

Item 5 6

Riverside Transit AgencyFY18/19 Cash Flow Projection

Actual1 Wells Fargo General Account 3/22/2019 3/29/2019 4/5/2019 4/12/2019 4/19/2019 4/26/2019 5/3/2019 5/10/2019 5/17/2019 5/24/2019 5/31/20192 Est. Cash, Beg Balance (Book) 242,774 83,351 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000

3 Receipts:4 LTF Operating - - - - - 1,326,107 - - - - - 5 LTF OPEB - - - - - - - - - - - 7 RIN's Credit - - - 64,142 - - - 60,000 - - - 8 LCFS - - - - - - - - - - - 9 CalPERS CERBT Disbursement - 96,444 - - - 94,811 - - - 90,000 - 10 Farebox 154,168 130,000 130,000 130,000 130,000 130,000 130,000 130,000 130,000 130,000 130,000 11 Total Other Farebox 16,875 437,854 15,404 82,488 319,773 79,777 15,404 - 311,597 103,548 15,404 12 Total Other Local 965 10,628 7,496 5,000 5,000 5,000 10,628 5,000 5,000 5,000 5,000 13 FTA Operating - 73,197 - - 114,025 - - - 104,064 - - 14 Capital - Local, State 56,155 - 12,125 - - - - - - - - 15 FTA Capital 508,961 90,533 169,870 - - - - - - - -

16

Transfer from Investment Accounts to Wells Fargo General Account 483,290 736,969 2,036,237 2,147,876 - - 2,726,969 1,725,000 - 976,452 374,596

17 Disbursements:18 Payroll = Net+Tax (634) (1,064,513) - (1,050,000) - (1,050,000) - (1,050,000) - (1,050,000) - 19 A/P Wires (214,752) (88,140) (1,971,285) (1,179,506) (215,000) (55,000) (2,683,000) (670,000) (215,000) (55,000) (325,000) 20 A/P Checks (130,460) (300,000) (200,000) (200,000) (200,000) (200,000) (200,000) (200,000) (200,000) (200,000) (200,000) 21 Capital Expenditures (977,990) (156,323) (199,847) - - - - - - - -

22

Transfer to Investment Accounts from Wells Fargo General Account (56,000) - - - (153,799) (330,695) - - (135,661) - -

23Transfer to CERBT OPEB Trust Account - - - - - - - - - - -

24

Actual Ending Wells Fargo General Account Book Balance / Targeted Minimum Balance 83,351 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000

25 LAIF Account:26 Beginning balance 3,076,267 3,013,267 3,013,267 3,013,267 3,013,267 3,022,767 3,022,767 3,022,767 3,022,767 3,022,767 3,022,767 27 Quarterly Interest Income 9,50128 Transfers to/from Gen Acct. (63,000) - - - - - - - - - -29 Ending balance 3,013,267 3,013,267 3,013,267 3,013,267 3,022,767 3,022,767 3,022,767 3,022,767 3,022,767 3,022,767 3,022,767

30 County Pool Account:31 Beginning balance 17,982 4,000 0 0 0 0 0 0 0 0 032 Quarterly Interest Income33 Transfers to/from Gen Acct. (13,982) (4,000) - - - - - - - - -34 Ending balance 4,000 0 0 0 0 0 0 0 0 0 0

35 CalTrust Account:36 Beginning balance 51,481,131 51,130,822 50,362,873 48,326,636 46,178,760 46,222,558 46,607,754 43,880,785 42,155,785 42,181,446 41,204,994 37 Quarterly Interest Income 75,000 50,000 50,000 38 Transfers to/from Gen Acct. (350,308) (847,449) (2,036,237) (2,147,876) 43,799 330,695 (2,726,969) (1,725,000) 25,661 (976,452) (374,596) 39 Ending balance 51,130,822 50,358,373 48,326,636 46,178,760 46,222,558 46,603,254 43,880,785 42,155,785 42,181,446 41,204,994 40,880,398

Restricted Capital Balance >>> 39,865,002 39,886,002 39,886,002 39,886,002 39,895,502 39,920,502 39,920,502 39,920,502 39,920,502 39,920,502 39,945,502 Funding for CERBT OPEB Trust >> 895,000 895,000 895,000 895,000 895,000 895,000 895,000 895,000 895,000 895,000 895,000 Restricted Operating Balance >>> 2,374,326 2,264,346 2,264,346 2,264,346 2,154,346 2,158,846 2,158,846 2,158,846 2,048,846 2,048,846 2,053,346 Unrestricted Operating Balance >>> 11,097,113 10,380,793 8,344,555 6,196,679 6,350,478 6,706,173 3,979,204 2,254,204 2,389,866 1,413,414 1,063,817

Avg Operating expenses per month => 7,165,000 7,165,000 7,165,000 7,165,000 7,165,000 7,165,000 7,165,000 7,165,000 7,165,000 7,165,000 7,165,000 No. of months Oper Cash On Hand => 1.55 1.45 1.16 0.86 0.89 0.94 0.56 0.31 0.33 0.20 0.15

Item 5 7

RIVERSIDE TRANSIT AGENCY 1825 Third Street

Riverside, CA 92507

April 3, 2019

TO: BOARD BUDGET AND FINANCE COMMITTEE

THRU: Larry Rubio, Chief Executive Officer

FROM: Vince Rouzaud, Chief Procurement and Logistics Officer

SUBJECT: Authorization to Exercise Option Years One and Two on Agreement No. 15-001 with Empire Transportation for Fixed Route and Regional Commuter Bus Services (CommuterLink)

Summary: The Agency has historically contracted with third-party contractors to provide service for approximately 30 percent of its fixed-route and regional commuter bus operations. These services are contracted out as a way to deliver efficient, cost effective service, particularly in rural areas of the county where smaller vehicles are more capable of operating in a rural environment. Unlike our directly operated service which uses 40-foot heavy duty buses, these services are provided with smaller, 28-passenger vehicles.

On January 21, 2016, after a competitive Request for Proposals (RFP) process, the Board authorized the award of Agreement No. 15-001 to Empire Transportation (Empire) for fixed-route and regional commuter bus services. This three-year agreement became effective on July 1, 2016 and will expire on June 30, 2019. The Agreement also included two, one-year option periods.

Ordinarily, agreements spanning multi-years are evaluated in their entirety per Federal Transit Administration (FTA) guidelines and approved for both the base-period, plus any option-year periods. However, for this procurement, the Board recommendation was limited to the base-period only because of the uncertainty surrounding proposed minimum wage legislation that, if approved by the California State Legislature, would have an impact on the overall contract value, particularly in years four and five.

Shortly after the Board authorized the award, the legislation was passed and on April 4, 2016 Governor Jerry Brown signed into law Senate Bill 3 (SB3). SB3 increased the minimum wage to $10.50 per hour on January 1, 2017, $11.00 per hour on January 1, 2018, and then an additional $1.00 per hour thereafter in each of the next four years, reaching $15.00 per hour on January 1, 2022. The measure also included provisions to further adjust the minimum wage annually based on the rate of inflation for the previous year.

Item 6 8

Why this legislation was so critical to the Agency is because California’s Labor Code 512, subdivision (a) states in part that “an employer may not employ an employee for a work period of more than five hours per day without providing the employee with a meal period of not less than 30 minutes…unless the employee is specified under Subdivision (f) and both of the following conditions are satisfied”: (1) The employee is covered by a valid collective bargaining agreement;

(2) The valid collective bargaining agreement expressly provides for the

wages, hours of work, and working conditions of employees, and expressly provides for meal periods for those employees, final and binding arbitration of disputes concerning application of its meal period provisions, premium wage rates for all overtime worked, and a regular rate of pay of not less than 30-percent more than the state minimum wage rate.

Subdivision (f) applies to “an employee employed as a Commercial Driver”. For purposes of this subdivision, a “Commercial Driver” means an employee who operates a vehicle described in Section 260 or 462 of, or subdivision (b) of Section 15210 of, the Vehicle Code. What this means is transit agencies, in lieu of providing rest and meal periods as required under California law, may elect to pay coach operators a 30-percent premium above minimum wage. Paying the 30-percent premium is more cost effective than providing a meal period as it would cost considerably more to provide a relief vehicle and an operator to relieve a driver while in revenue service. As discussed in a June 2016 update to the Board, the impact this legislation had on the three-year base period was approximately $467,000 in additional labor expenses. This amount represented the incremental cost in wages as they increased each year, payroll taxes and the additional worker’s compensation premiums calculated on a higher payroll. The original agreement approved by the Board in January 2016 was based on 193,621 annual revenue service hours. The agreement was formally amended in June 2016 increasing the revenue service hours to 210,449 to account for the feeder services for the new Metrolink Perris Valley Line. Over the past few months, staff has worked closely with Empire to calculate the costs for the two option-year periods given the $4.50 per-hour increase in labor rates from the start of January 2016 through June 30, 2021. For FY20, the revenue hourly rate will go up from $73.68 to $75.11, an increase of 1.9 percent. The revenue hourly rate for FY21 is slated to be $76.47, an increase of 1.8 percent above the FY20 rate. As before, the agreement will include provisions to adjust the revenue hourly rate to accommodate the further increases to minimum wages. Staff projects the additional labor expenses will

Item 6 9

total approximately $648,515.63 for FY20 and $992,733.90 for FY21 as originally anticipated when SB3 was passed.

Based on the Agency’s proposed FY20 service plan, staff projects the costs for FY20 and FY21 are as follows:

Revenue Service Hours Amount FY20 214,885 $16,788,528 FY21 214,885 $17,424,990

The above amounts are based on the service plan as it is known today and does not take into account service expansion. Actual reimbursement over the two-year period can vary based on adjustments to the Agency’s service plan as approved periodically by the Board.

To comply with the FTA’s guidance governing the exercise of option-year periods, staff conducted a market survey to determine if the option pricing is better or more advantageous than the pricing available on the open market at the time the option is exercised. For this survey, the following agencies were contacted:

• Los Angeles Metropolitan Transportation Authority• Antelope Valley Transit Authority• Victor Valley Transit Authority• Orange County Transportation Authority

While the specific scope of services provided by contractors varies by agency, a comparative analysis of other agencies’ costs determined that Empire’s hourly rates are fair and reasonable. Staff’s research found that in some instances the contracting agency provided only the revenue vehicles as does the RTA with the contractor providing everything else, while in other instances the contracting agency provided the revenue vehicles, staff vehicles, facilities and fuel.

Other factors considered were start-up costs, service area, deadhead vs. revenue hours, length of agreement and number of revenue service hours and miles operated. Hourly rates varied from $60.47 to $112.29. However, when normalized, the rates charged by Empire were consistent with what other agencies are paying for similar services in the Southern California region.

Of the Agency’s 713,654 projected annual fixed-route revenue service hours for FY20, approximately 30 percent are contracted fixed-routes (CFR). Table 1 below identifies the specific route numbers and corresponding annual revenue service hours and miles for each contracted route.

Item 6 10

Table 1 – FY20 Revenue Hours and Miles

` (Revenue Hours and Miles as of March 2019)

As before, Empire will continue to provide everything necessary for the operation including but not limited to: facilities, operations, management, dispatching, maintenance, fuel, and insurance while the Agency provides the revenue vehicle fleet. The current number of revenue vehicles assigned to the CFR fleet is 79 which includes spares.

The agreement will include provisions for adjusting the billing rate for fuel increases or decreases based on the formula outlined in the original RFP. An example of how this methodology works is detailed under the fiscal impact section of this report.

CFR service represents approximately 18 percent of the Agency’s annual operating budget. The number of personnel employed for this service is approximately 212, which includes drivers, mechanics, dispatchers, supervisors and administrative support personnel.

In conclusion, staff recommends exercising the two option-year periods with Empire Transportation as the best value provider for contracted fixed route and regional commuter bus services.

Fiscal Impact:

Based on the FY20 service plan and assuming no increase in service for FY21, the pricing for the two-year period would be $34,213,518, not including adjustments for fuel. Staff estimates that over the two-year period, increases

ROUTE REVENUE HOURS

REVENUE MILES ROUTE REVENUE

HOURSREVENUE

MILES3 4,890 75,699 50 2,352 15,7948 17,042 245,214 51 1,898 19,3679 6,643 118,530 52 3,210 22,420

19C 257 3,457 54 1,741 6,91823 14,403 207,785 55 777 9,14824 12,085 144,876 61 19,400 327,45226 4,331 57,318 74 21,443 369,58830 7,610 92,371 79 18,644 281,29831 22,913 548,582 202 3,155 75,95032 9,721 105,630 202 Beach 544 12,12033 6,986 86,963 208 6,123 170,10040 9,017 154,733 210 550 16,24841 5,193 85,319 217 8,182 231,84842 5,775 85,501 Grand Total 214,885 3,570,230

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in fuel costs may increase the overall contract value by approximately 2 percent, or an additional $684,270, making the total not-to-exceed amount $34,897,788.

The fuel escalation/de-escalation clause is structured so that it will only be triggered in the event of a 10-percent or more increase or decrease in fuel costs during any three-month period. Actual fuel costs will be based on the OPIS rack pricing for Colton, CA. per the example in Table 2 below:

Table 2 – Fuel Escalation Methodology

If approved, the new agreement will become effective on July 1, 2019. Funding for these services will be incorporated in the Agency’s budget request for FY20. Funding for FY21 will be requested in next year’s budget request.

Recommendation:

Contingent upon the approval of the FY20 operating budget and service plan, approve and recommend this item to the full Board of Directors for their consideration as follows:

• Authorize staff to exercise the two option-year periods on AgreementNo. 15-001 with Empire Transportation, Inc. for contracted fixed routeand regional commuter services in the amount of $34,897,788 whichincludes a 2-percent contingency for fuel costs.

10.01%75.11$

2.17$ 9.03$

FUEL INCREASE2.17$ 2.40$ 2.50$ 2.60$ 2.70$

% Change in Fuel Rate 0.00% 10.60% 15.21% 19.82% 24.42%Fuel Portion of Hourly Rate 9.03$ 9.03$ 9.03$ 9.03$ 9.03$ Adjusted Billing Rate Per RSH 75.11$ 76.07$ 76.48$ 76.90$ 77.32$

FUEL DECREASE2.17$ 1.95$ 1.85$ 1.75$ 1.65$

% Change in Fuel Rate 0.00% -10.14% -14.75% -19.35% -23.96%Fuel Portion of Hourly Rate 9.03$ 9.03$ 9.03$ 9.03$ 9.03$ Adjusted Billing Rate Per RSH 75.11$ 74.19$ 73.78$ 73.36$ 72.95$

Rate Per Gallon

Threshold of Increase in Rate Per GallonInitial Billing Rate Per RSHBase Contract Fuel Rate per GallonFuel Portion of Hourly Rate

Rate Per Gallon

Item 6 12

RIVERSIDE TRANSIT AGENCY 1825 Third Street

Riverside, CA 92507

April 3, 2019

TO: BOARD BUDGET AND FINANCE COMMITTEE

THRU: Larry Rubio, Chief Executive Officer

FROM: Craig Fajnor, Chief Financial Officer

SUBJECT: Authorization to Close Public Hearing and Adopt Proposed Fare Structure

Summary: The current Agency fare structure was implemented in July 2009. At that time, fares were increased an average of 20% and were projected to enable the Agency to meet overall farebox ratio recovery (FRR) goals for the next four years. In fact, the Agency’s actual FRR has exceeded the blended target established every year since the last fare change. This was due to the revenue growth from that fare increase as well increases in ridership, other local revenues, and the impact of including certain allowable revenues and excluding certain expenses in calculating the actual FRR. However, on a “pure” basis, where only true fares are calculated in the ratio, the agency has not achieved the target for the past three completed fiscal years and will not again in FY19.

Other allowable revenues, such as those attributed to the Agency’s use of natural gas converted to compressed natural gas (CNG) and interest income, are volatile and cannot be relied upon to help the Agency exceed the FRR target by a comfortable margin. For reference, other CNG-related revenues are Low Carbon Fuel Standard Credits and Renewable Identification Number Credits under state and federal programs, respectively, and sales to the public.

Since July 2009, the Agency has realized increased operating expenses in many cost elements including, but not limited to, employee wages and medical benefits and purchased transportation. In addition, since FY09, the Agency’s service has grown 30% (through FY19) as measured in Revenue Service Hours (RSH). Future service is assumed to grow, but at an unknown rate, as it is limited to overall revenues that fund Agency operating expenses and capital asset requirements. With population growth in the region anticipated over the upcoming decades, service growth and modifications are very

Item 7 13

likely to be needed. Regardless of available funding levels, FRR achievement is always a consideration to remain eligible for funding.

At their October 2018 meeting, the Board of Directors authorized staff to contract with Carter Executive Consulting (Carter) to perform a comprehensive fare study to evaluate the current fare structure in relation to achieving ridership goals and farebox recovery requirements in the future. The fare study was commenced in late November 2018 and encompassed all Agency bus routes and services. Agency operating expenses, anticipated FRR requirements, and ridership trends were considered and analyzed during the study. The study also included a peer review of regional operators.

The process also included holding nine public outreach meetings and advertising via newspaper, website, social media, email and on-bus brochures to receive feedback on the recommended fare structure believed to be most beneficial for the foreseeable future. After the process outlined above was completed, a proposed structure was developed. The structure considered the following themes:

• Smaller but more frequent increases• Maintain current senior/disabled/Medicare discounting• Maintain a CommuterLink fare structure that emulates the

discounting philosophy of local fixed route service• Dial-A-Ride fares would continue to follow the current structure

of twice the base cash fare and no volume discount

The nine public meetings were held in early March. The public meetings were held in Beaumont, Corona, Hemet, Jurupa Valley, Moreno Valley, Murrieta, Perris and Riverside. The proposed structure was also a topic covered at the triannual American with Disabilities Act (ADA) meeting held in Riverside.

Over the course of the public comment period, a total of 47 comments were received. Comments were received in person at the public meetings, through social media, email and the Customer Information Center (CIC). The following is a summary of the public comments received as of the writing of this report:

• In person - Nine public town hall meetings were held across theservice area, with 11 customers participating. In summary: fivefound the proposed fare increase unfortunate but acceptable;four want service improvements; three suggested more fareenforcement; and two opposed any fare change. The proposedchange was also discussed at the triannual ADA meeting wheresix members of the public were present. No comments weregiven.

Item 7 14

• Via social media (Instagram, Facebook and RTA website) - 22comments were received. In summary: ten were supportive ofthe proposed change; eight were against the change; and fourcommented about service changes, payment options andenforcement.

• Through the CIC - input from 15 customers came through thecall center via calls, emails and walk-in. In summary: eight didnot support the fare change; two supported the proposed farechange; two requested more enforcement but were supportiveof the change; two requested more payment options (mobileapp and transfers) but did not comment about the change; andone requested more service but did not comment about thechange.

After consideration of the public feedback, Carter’s study findings, the current economic climate and a comparison of neighboring transit properties’ fare structures, staff recommends the structure identified in Attachment 1 to this report be adopted.

PROPOSED FARE STRUCTURE SUMMARY

1. Increase local fixed route and CommuterLink base (cash) fares andperiod passes for all customer groups (general, youth,senior/disabled/Medicare, veteran and child) effective July 2019and again in July 2021.

2. Coin multiples are considered in raising fares to speed boarding.3. Retain universal fare media. These fares would provide unlimited

usage on local fixed route and CommuterLink based on theduration purchased.

4. Increase Dial-A-Ride (DAR) fares commensurate with the increasein the local fixed route General cash fare.

Attachment 1 to this report is a table reflecting the proposed Fare Structure, comparing the current structure with those proposed to be effective in July 2019 and July 2021, respectively.

Attachment 2 to this report is a table reflecting the five-year financial projection of the proposed Fare Structure.

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Fiscal Impact:

Attachment 2 to this report reflects the projected effect of the proposed fare structure on performance indicators for FY20 – FY24 compared to a baseline of no fare modification (FY19 projected). The estimated impact on ridership, fare revenue, and farebox recovery is shown for FY20 through FY24 for the recommendation, assuming implementation July 1, 2019 and July 1, 2021, respectively. The proposed structure strengthens the Agency’s “pure” farebox recovery position through the forecasted period while providing additional revenue to improve our service offering.

Recommendation:

Recommend this item to the full Board of Directors for their consideration as follows:

• Authorize staff to close the public hearing on the proposed fare structure modification.

• Adopt the proposed fare structure modification and authorize an

initial implementation date of July 1, 2019.

• Adopt the proposed fare structure modification and authorize a subsequent implementation date of July 1, 2021.

• Adopt a finding that the proposed fare structure adjustments are

for the purpose for meeting operating expenses and farebox recovery ratio requirements.

• Direct staff to file a Notice of Exemption from the California

Environmental Quality Act (CEQA).

Item 7 16

Attachment 1 – Proposed Fare Structure

Item 7 17

Attachment 2 - Impact of proposed fare structure

ITEM FY18 Actual FY19 Estimated FY20 Projected FY21 Projected FY22 Projected Ridership 8,667,876 8,927,913 8,675,812 8,935,514 8,823,218 Ridership Change 260,036 (252,100) 259,702 (112,296) Revenue 10,911,613$ 11,238,961$ 12,948,423$ 13,330,509$ 14,919,109$ Revenue Change 327,348$ 1,709,462$ 382,086$ 1,588,601$ Operating Expense 79,235,000$ 86,000,000$ 92,020,000$ 98,461,400$ 105,353,000$ Fare Target 17.44% 16.72% 17.50% 17.50% 17.50%Pure Farebox Recovery 13.8% 13.1% 14.1% 13.5% 14.2%Safe Harbor Farebox Recovery 20.3% 20.9% 21.2% 20.4% 20.5%

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