PLANNING AND FINANCE COMMITTEE

Transcription

1 PLANNING AND FINANCE COMMITTEE O C T O B E R 2 5,

2 ROSTER PLANNING & FINANCE COMMITTEE COUNTY MEMBER RCTC: Daryl Busch (Chair) 1 Vote Mayor City of Perris Adam Rush Mayor Pro Tem City of Eastvale VCTC: Keith Millhouse (Vice-Chair) 1 Vote Council Member City of Moorpark METRO: Michael Antonovich 1 Vote Metro Board of Directors Supervisor, 5 th District County of Los Angeles Ara Najarian Council Member City of Glendale Jaime de la Vega Metro Appointee Richard Katz Metro Appointee SANBAG: Patrick Morris 1 Vote Chair, Metrolink Board of Directors Mayor City of San Bernardino Alan D. Wapner Council Member City of Ontario OCTA: Carolyn Cavecche 1 Vote OCTA Appointee One Gateway Plaza, 12 th Floor Los Angeles, CA 90012

3 PLANNING AND FINANCE COMMITTEE FRIDAY, OCTOBER 25, :00 A.M. LOS ANGELES COUNTY METROPOLITAN TRANSPORTATION AUTHORITY BOARD ROOM ONE GATEWAY PLAZA, 3 rd FLOOR LOS ANGELES, CALIFORNIA AGENDA DESCRIPTIONS The agenda descriptions are intended to give notice to members of the public of a brief general description of items of business to be transacted or discussed. The posting of the recommended actions does not indicate what action will be taken. The Committee may take any action that it deems to be appropriate on the agenda item and is not limited in any way by the notice of the recommended action. The Chair reserves the right to discuss the items listed on the agenda in any order. A person with a disability may contact the Committee Secretary's office at (213) or via batesc@scrra.net at least 72-hours before the scheduled meeting to request receipt of an agenda in an alternative format or to request disability-related accommodations, including auxiliary aids or services, in order to participate in the public meeting. Later requests will be accommodated to the extent feasible. SUPPORTING DOCUMENTATION The agenda, staff reports and supporting documentation are available from the Committee Secretary, located at One Gateway Plaza, 12 th Floor, Los Angeles, CA 90013, and on the Metrolink website at under the Committee Agenda link. PUBLIC COMMENTS ON AGENDA ITEMS Members of the public wishing to address the Committee members regarding any item appearing on the agenda, may do so by completing a Speaker s Form and submitting it to the Committee Secretary. Speakers will be recognized by the Chair at the time the agenda item is to be considered. When addressing the Committee, please state your name for the record. Please address the Committee as a whole through the Chair. Please note comments to individual Committee members or staff are not permitted when addressing the Committee. A speaker s comments shall be limited to three (3) minutes. PUBLIC COMMENTS ON ITEMS NOT ON THE AGENDA Members of the public wishing to address the Committee members regarding any item not on the agenda, but within the subject matter jurisdiction of the Committee, will be taken under Item 3 (Public Comment), and will be subject to the same guidelines as noted above. One Gateway Plaza, 12 Floor, Los Angeles, CA 90012

4 Planning and Finance Committee Agenda Transmittal Date: October 21, 2013 Meeting Date: October 25, 2013 Page 2 1. Call to Order 2. Pledge of Allegiance 3. Public Comment REGULAR CALENDAR 4. Approval of Minutes July 26, 2013 Planning and Finance Committee Meeting Minutes. Staff recommends the Planning and Finance Committee approve the minutes of the July 26, 2013 Committee meeting. Page 1 5. Contract No. SP Consultant Services for Development of Strategic Plan Recommendation for Award Parsons Brinckerhoff, Inc. Consulting services are required to develop a 10-year Strategic Plan encompassing the Metrolink vision for a premier commuter rail system in Southern California. The Authority i s seeking consulting services to accomplish several k e y tasks and to provide professional services facilitating a two-phase strategic planning process. The strategic plan will address the Authority s vision, values and goals, under the constraints of governance, responsibilities, agreements and organizational structure, to determine consensus-based priorities framing the overall Strategic Plan. Staff recommends the Planning and Finance Committee approve and recommend the Board authorize the Chief Executive Officer to award Contract No. SP to Parsons Brinckerhoff, Inc. in an amount of $584,576 with a $50,000 contingency for a total not-toexceed contract funding authorization of $634,576, for a contract term of fifteen (15) months from the Notice to Proceed (NTP). Funds for the strategic plan consultant services were approved and are included in the FY Operating Budget at $325,000. Estimated expenditures provide for $25,000 of the total $50,000 contingency to be available in FY Funding for the subsequent fiscal year will be requested in the proposed FY Operating Budget. Page 6 6. Quarterly Investment Report First Quarter Ended September 30, 2013 Section VII of the Southern California Regional Rail Authority s (Authority) Annual Investment Policy requires that the Treasurer make a quarterly investment report to the Board of Directors, and Section of the California Government Code encourages local agencies to file this report. This report covers the first quarter ended September 30, The Authority is currently managing a portfolio of $61.7 million in cash, cash equivalents, and investment funds. The portfolio is comprised of operating cash,

5 Planning and Finance Committee Agenda Transmittal Date: October 21, 2013 Meeting Date: October 25, 2013 Page 3 restricted and unrestricted funds. Approximately $19.4 million of operating cash is currently on hand as of September 30, 2013, representing about 31.5% of total funds. The remaining balance is comprised of restricted and unrestricted funds totaling $42.3 million. The restricted funds totaled $40.4 million, and the unrestricted funds totaled $1.9 million. The Planning and Finance Committee may receive and file this report. There is no budget impact as a result of this status report. Page 9 7. FY Quarterly Accounts Receivable Status Report Twelve Months Ended June 30, This report presents a preliminary status update of the accounts receivable as of twelve months ended June 30, 2013 for Southern California Regional Rail Authority (Metrolink or Authority). Metrolink s main sources of funds include passenger fares, dispatching and maintenance of way revenues, member agency operating and capital subsidies, and state and federal grant programs. As of June 30, 2 013, the total outstanding accounts receivable balance is $84.3 million. Of the total accounts receivable, $46.6 million is current (less than 30 days) and $37.7 million are past due. Additionally, approximately $11.7 million of the accounts receivable are over 180 days. 2 The Planning and Finance Committee may receive and file this report. There is no budget impact as a result of this status report. Page FY Quarterly Accounts Receivable Status Report Quarter Ended September 30, This report presents a preliminary status update on the accounts receivable for the first quarter ended September 30, 2013 for Southern California Regional Rail Authority (Metrolink or Authority). Metrolink s main sources of funds include passenger fares, dispatching and maintenance of way revenues, member agency operating and capital subsidies, and state and federal grant programs. As of September 30, 2013, total outstanding accounts receivable balance is $64.3 million. Of the total accounts receivable, $22.6 million is current (less than 30 days) and $41.6 million are past due. Additionally, approximately $12.9 million of the accounts receivable are over 180 days. 2 1 The report contains preliminary figures that have not been reconciled as part of the month-end close process. These figures are subject to change if additional details become available that will impact the information presented herein. 2 The accounts receivable data is obtained from Oracle r12.

6 Planning and Finance Committee Agenda Transmittal Date: October 21, 2013 Meeting Date: October 25, 2013 Page 4 The Planning and Finance Committee may receive and file this report. There is no budget impact as a result of this status report. Page Passenger Fare Revenue and Ridership Report Twelve Months Ended June 30, 2013 This item presents a preliminary analysis on passenger fare revenues and boardings for the twelve months ended June 30, 2013, and a comparison of prior year results and FY budget. The Passenger Fare Revenue and Ridership Report for twelve months ended June 30, 2013 is represented in detail in Attachment A. Line segments are further delineated by weekday and weekend statistics and results. Included in this report are comparisons of operating line fare revenues, ridership, and revenue per rider. The Planning and Finance Committee may receive and file this report. Based on the results of fiscal 2013, the Authority is $3.6 million under budget for fare revenue for FY Staff will be making a separate presentation on preliminary fare revenue and ridership data for the first quarter of FY , ended September 30, Page Chief Executive Officer s Report 11. Chair s Comments 12. Committee Member Comments 13. Adjournment

7 MINUTES OF THE SCRRA PLANNING AND FINANCE COMMITTEE JULY 26, 2013 ITEM 4 COMMITTEE MEMBERS IN ATTENDANCE: VOTES RCTC: DARYL BUSCH (Chair) 1 Adam Rush METRO: MICHAEL ANTONOVICH 1 MARK RIDLEY-THOMAS 1 Jaime de la Vega 1 Beatrice Proo SANBAG: PATRICK MORRIS 1 Alan Wapner 2 OCTA: Carolyn Cavecche 1 STAFF: MICHAEL P. DePALLO, Chief Executive Officer GRAY CRARY, Chief Strategic Officer DON DEL RIO, General Counsel OLGA YERO, Chief of Staff CARRIE BATES, Committee Secretary Meeting minutes are presented in a format that corresponds with the Planning and Finance Committee Agenda, which is incorporated by reference with these minutes. SCRRA Planning and Finance Committee Agendas are available from the Metrolink website ( or by calling the Committee Secretary at Call to Order The July 26, 2013 Planning and Finance Committee Meeting was called to order by Chair Busch at 10:02 a.m. at the Los Angeles County Metropolitan Transportation Authority Board Room, One Gateway Plaza, 3 rd Floor, Los Angeles, California, Pledge of Allegiance Director Rush led the group in the Pledge of Allegiance. 1 Directors Ridley-Thomas and de la Vega joined the meeting during the discussion of Item No Director Wapner did not attend the Planning and Finance Committee meeting as he provided San Bernardino Association of Governments (SANBAG) representation at the Safety and Operations Committee meeting which ran concurrently. 1

8 Planning and Finance Committee Meeting Minutes July 26, 2013 Transmittal Date: October 21, 2013 Page 2 3. Public Comment Chair Busch inquired if any members of the public wished to address the Committee. With there being no request to speak, the Public Comment period was formally closed. REGULAR CALENDAR 4. Approval of Minutes June 28, 2013 Planning and Finance Committee Meetings Upon a motion by Director Morris, seconded by Director Proo, the Planning and Finance Committee approved the minutes of the June 28, 2013 Committee meeting. There was no opposition and the motion passed unanimously. ACTION: The Planning and Finance Committee approved the June 28, 2013 Committee minutes. 5. Approval of Evaluation Criteria Request for Proposal No. SP Consulting Services for Development of Strategic Plan Gray Crary, Chief Strategic Officer, provided a brief background on this item as detailed in the staff report. He explained that, upon direction from the Board, the scope of work and evaluation criteria had been revised in order to lower the budget (reduced from $1 Million to $325,000 per year for two years) and to include assistance from the five member agencies, Technical Advisory Committee (TAC) members, staff and designees to collaborate on the consultant tasks for this project. Director Morris stated that the scope of work is a good piece, well written and understandable. He commented about the partnership opportunity between the Authority and the five member agencies and their Boards together in a workshop setting engaged in the development process. Director Rush concurred with the scope s clarity noting that he has read many scope s and inquired about the delta changes in the scope. Gray Crary noted that staff is drafting specific scopes for each working group and that during the proposal process; the scopes will be made available to the vendors. He explained that the initial scope of work had broadly described the product of those working groups and that $300,000 of consultant activities had been eliminated and will be performed by staff and member agencies designees. Director Proo suggested that in Graph #1 Safety and Security should be the number one bubble spot. Chair Busch inquired how the Board will be involved or tasked. Gray Crary explained that the consultant has been identified as the Board Liaison position, and will therefore define how that interface would occur and inform the Board of the process to ensure there is direct management from the Board of the goals and activities. 2

9 Planning and Finance Committee Meeting Minutes July 26, 2013 Transmittal Date: October 21, 2013 Page 3 Upon a motion by Director Morris, seconded by Director Proo, the Planning and Finance Committee approved staff s recommendation. There was no opposition and the motion passed unanimously. ACTION: The Planning and Finance Committee approved and recommends the Board of Directors to approve the proposed evaluation criteria detailed in Attachment 1 of the staff report, specifying a weighting of eighty percent (80%) for technical qualifications and twenty percent (20%) for cost, to retain a firm to provide direction for the development of a 10-year Strategic Plan. The proposed criteria are consistent with the Board-approved Contracts Administration and Procurement policy CON-7, Technical and Cost Criteria Weights. 6. Quarterly Investment Report Quarter Ended June 30, 2013 Patricia Kataura, Interim Chief Financial Officer and Treasurer, provided a brief background on this item as detailed in the staff report for the fourth quarter ended June 30, She noted that the Authority s cash position as of June 30, 2013, was $61.2 million with earnings at $129,000 noting that investing strategically is quite limited to be able to earn equity to meet the Authority s financial obligations. Patricia Kataura reviewed areas of revenue earnings and noted that staff is working on cash flow forecasts and conferring with Member Agency Advisory Committee (MAAC) for cash flow and reserve guidance. Director Proo asked what challenges have staff incurred to keep cash flow and invoicing moving smoothly. Patricia Kataura replied that invoicing has improved and has continued through the implementation of Oracle, though there was a slow-down in processing due to implementation set-backs. Director Cavecche inquired about the status of third-party billings. Patricia Kataura stated that as of last week, all expenses that have incurred, which could be invoiced and processed (including capital projects), were processed and invoiced through the end of May Gray Crary referred to MAAC s extensive discussions on issues related to Oracle. Billing is up-to-date on billable invoices through May June invoices have been received but have not been billed due to issues related to the conversion of Oracle. There are invoices that staff are currently working on though can t be processed due to finance or data review issues. Gray Crary noted there are still areas where the new Oracle is not the push-button result. Staff is working diligently to resolve these issues. Therefore, manual billing is still necessary. Director Cavecche summarized that all billings that could be physically invoiced have been through May 2013, but there are still outstanding invoices to be billed due to pending issues and Patricia Kataura confirmed. Director Cavecche further inquired, for the first Quarter FY , if Member Agency Memorandums of Understanding (MOU) were finalized and submitted. Patricia Kataura stated the invoices have been generated and sent, although there are still some member agencies that have not executed their MOUs; adding that she plans on reaching out to those member agencies to offer staff s assistance. Director Cavecche requested member 3

10 Planning and Finance Committee Meeting Minutes July 26, 2013 Transmittal Date: October 21, 2013 Page 4 agency representatives to acknowledge any outstanding MOU issues to staff to enable their MOUs to proceed on a timely basis. Director Morris inquired how the upgraded Oracle System will facilitate current billing practices to ensure that the Authority does not have another deficit year. Patricia Kataura explained that the biggest gain the Authority has obtained is the ability to track and enter funding sources into Oracle. This new feature will not allow staff to enter requisitions without budget authority. Setbacks have been experienced in the accounting department and Information Technology (IT) is assisting to resolve these issues. Once correct accounting background, rules and information is entered (and working well); after weekly check runs, invoicing will take 3 days. She added that accounting staff and resources would be utilized for analytical work instead of manual data entry, which is what is needed until there is resolution of these issues. Patricia Kataura acknowledged that she feels that within three months time the Oracle R12 should be fully operational and this conversation should then be different. ACTION: The Planning and Finance Committee received and filed this report. 7. Chief Executive Officer s Report Michael P. DePallo reported: The Member Agency Advisory Committee (MAAC) has met regularly and has started work on the Financial Consultant contract and monitoring progress on the Forensic Auditor reviewing the timing for both. He also introduced the new Chief Auditor, Barbara Manning. On Spain s recent train incident where multiple lives were lost. He noted that the incident appeared to be due to increased speed in a posted reduced speed zone. He commented that Spain s rail system was not designed to prevent this type of incident and noted that the Positive Train Control (PTC) system will be equipped with a provision for over-speed protection which would not allow a train to accelerate higher than the posted speed. He added that we all can be proud that Metrolink will be leading the nation in this life-saving technology. 8. Chair s Comments Chair Bush welcomed Barbara Manning to the Authority. Chair Busch noted the Perris Valley Line is moving ahead as legal issues have been resolved and the contract should be executed early next week. As soon as the papers are signed by the Federal Transit Administration (FTA), the Perris Valley Line will become part of the Metrolink system within one and one half years. 4

11 Planning and Finance Committee Meeting Minutes July 26, 2013 Transmittal Date: October 21, 2013 Page 5 9. Committee Member Comments Director Rush shared his Metrolink train and bus connection experience to visit the Orange County Fair which went smoothly and was a good experience for his whole family and a great time. Director Cavecche noted that the MAAC is taking over finance-related issues and the Finance Ad Hoc Committee projects that she and Director de la Vega were involved in and were not finalized. Director Cavecche offered the Finance Ad Hoc Committees continued assistance on these projects, if requested. Director Morris shared his son s family s recent Metrolink train and Dodger Express bus experience to a Dodgers game adding that his grandsons feel their trip to the Dodgers game gave the team a turn-around, as they are now winners. 10. Adjournment There being no further business for consideration the meeting was adjourned at 10:40 a.m. Respectfully submitted, Carrie M. Bates Planning and Finance Committee Secretary 5

12 TRANSMITTAL DATE: October 21, 2013 MEETING DATE: October 25, 2013 ITEM 5 TO: FROM: Planning and Finance Committee Lia McNeil-Kakaris, Assistant Director, Contracts and Procurement SUBJECT: Contract No. SP Consultant Services for Development of Strategic Plan Recommendation for Award Parsons Brinckerhoff, Inc. Issue Consulting services are required to develop a 10-year Strategic Plan encompassing the Metrolink vision for a premier commuter rail system in Southern California. Recommendation Staff recommends the Planning and Finance Committee approve and recommend the Board authorize the Chief Executive Officer to award Contract No. SP to Parsons Brinckerhoff, Inc. in an amount of $584,576 with a $50,000 contingency for a total not-toexceed contract funding authorization of $634,576, for a contract term of fifteen (15) months from the Notice to Proceed (NTP). Alternatives The Committee may: 1) Reevaluate and rescore technical and cost proposals in accordance with the requirements of the solicitation; or 2) Reject all proposals and direct staff to re-issue the Request for Proposal (RFP). Background The Authority i s seeking consulting services to accomplish several k e y tasks and to provide professional services facilitating a two-phase strategic planning process. The strategic plan will address the Authority s vision, values and goals, under the constraints of governance, responsibilities, agreements and organizational structure, to determine consensus-based priorities framing the overall Strategic Plan. One Gateway Plaza, 12 th Floor, Los Angeles, CA

13 Contract No. SP Consultant Services for Development of Strategic Plan Recommendation for Award Transmittal Date: October 21, 2013 Meeting Date: October 25, 2013 Page 2 The plan will be transformative in how the Authority builds, prepares and integrates its short-term business plans, including the budget. With continued emphasis on safety, flexible budget processes, new technologies and employee development and retention, the plan will include strategic operational and safety issues, the exploration of new technologies, more effective operational strategies, and the development of wider markets. At the August 9, 2013 meeting, the Board approved evaluation criteria for the Consulting Services for Development of Strategic Plan competitive procurement. On September 3, staff issued a Request for Proposal (RFP). The solicitation was posted on the Authority s e-procurement system and advertised in publications in the five member counties. Notices were also sent directly to 950 firms registered in the Authority s online vendor database. Forty-six (46) firms downloaded the solicitation. Eleven (11) firms attended the preproposal meeting conducted on September 11, Two (2) proposals were received on October 1, Proposals were received from CH2M Hill and Parsons Brinckerhoff, Inc. Evaluations were conducted in accordance with the Board-adopted Contract Administration and Procurement Policies and Procedures CON-13, Proposal Evaluation. The evaluation team consisted of staff from the Strategic Office, Project and Contract Compliance Office, and members from Los Angeles County Metropolitan Transportation Authority (Metro) and Riverside County Transportation Commission (RCTC). Technical proposals were reviewed and scored. After the initial technical proposal review, both proposers met or exceeded the minimum technical score of 39 points (60%) and advanced to the interview/oral presentation. The interviews were then scored, and both firms achieved the total minimum score of at least 56 points (70%), combined Technical and Interview score and proceeded to evaluation of the cost proposals. After initial review of the cost proposals, a Best and Final Offer (BAFO) was requested and received from both CH2M HILL and Parsons Brinckerhoff, Inc. A review of the BAFOs revealed a difference of less than one percent between the two cost proposals. The results of the technical, interview/oral presentation, and cost scoring are shown below: Firm Technical Score Interview/Oral Presentation Score Cost Score Total Parsons Brinckerhoff, Inc CH2M Hill Based on the team s scores, Parsons Brinckerhoff, Inc. was determined to be the highest ranked, responsive, responsible proposer and is recommended for award. The team agreed that both proposers, CH2M Hill and Parsons Brinckerhoff, Inc., demonstrated the qualifications, expertise, and technical capability needed to fulfill the required tasks and deliverables identified in the Scope of Services. Parsons Brinckerhoff, Inc. s proposal offered the best value and is most advantageous to the Authority. 7

14 Contract No. SP Consultant Services for Development of Strategic Plan Recommendation for Award Transmittal Date: October 21, 2013 Meeting Date: October 25, 2013 Page 3 Parsons Brinckerhoff, Inc., with offices located in Los Angeles, California, has delivered consulting services to various government clients and transportation agencies. Parsons Brinckerhoff, Inc. has performed services including strategic planning for the Orange County Transportation Authority, the Riverside County Transportation Commission, the California High Speed Rail Authority, and the Metropolitan Transportation Commission in Oakland, California. References indicated that Parsons Brinckerhoff, Inc. provided satisfactory services. Staff conducted an analysis of the Parsons Brinckerhoff, Inc. cost proposal in accordance with the Board-adopted Contract Administration and Procurement Policies and Procedures CON-5, Cost and Price Analysis, and determined the firm-fixed price offered by Parsons Brinckerhoff, Inc. to be competitive and acceptable. Therefore, staff recommends the Planning and Finance Committee approve and recommend the Board authorize the Chief Executive Officer to award Contract No. SP to Parsons Brinckerhoff, Inc. in an amount of $584,576 with a $50,000 contingency for a total not-to-exceed contract funding authorization of $634,576, for a contract term of fifteen (15) months from the Notice to Proceed (NTP). Budget Impact Funds for the strategic plan consultant services were approved and are included in the FY Operating Budget at $325,000. Estimated expenditures provide for $25,000 of the total $50,000 contingency to be available in FY Funding for the subsequent fiscal year will be requested in the proposed FY Operating Budget. Prepared by: Albert Scala, Chief Project & Contract Compliance Officer Steve Holman, Senior Contract & Compliance Administrator Lia McNeil-Kakaris, Assistant Director, Contracts & Procurement 8

15 TRANSMITTAL DATE: October 21, 2013 MEETING DATE: October 25, 2013 ITEM 6 TO: FROM: SUBJECT: Planning and Finance Committee Metrolink Finance and Accounting Staff Quarterly Investment Report First Quarter Ended September 30, Purpose Section VII of the Southern California Regional Rail Authority s (Metrolink or Authority) Annual Investment Policy requires that the Treasurer make a quarterly investment report to the Board of Directors, and Section of the California Government Code encourages local agencies to file this report. This report covers the first quarter ended September 30, Recommendation The Planning and Finance Committee may receive and file this report. Background The Authority is currently managing a portfolio of $61.7 million in cash, cash equivalents, and investment funds. The portfolio is comprised of operating cash, restricted and unrestricted funds. Approximately $19.4 million of operating cash is currently on hand as of September 30, 2013, representing about 31.5% of total funds. The remaining balance is comprised of restricted and unrestricted funds totaling $42.3 million. The restricted funds totaled $40.4 million, and the unrestricted funds totaled $1.9 million. Amount Operating Account Cash on Hand $ 19.4 Restricted/Unrestricted Bank of America Money Market Reserves 3.7 Local Agency Investment Fund (LAIF) TOTAL $ The report contains preliminary figures that have not been reconciled as part of the month-end close process. These figures are subject to change if additional details become available that will impact the information presented herein. 2 LAIF has a total balance of $38.6 million comprised of restricted and unrestricted funds. The restricted ($36.7) and unrestricted ($1.9) amounts are obtained from Metrolink's financial records. One Gateway Plaza, Floor 12 Los Angeles, CA

16 Quarterly Investment Report Quarter Ended September 30, 2013 Transmittal Date: October 21, 2013 Meeting Date: October 25, 2013 Page 2 Restricted Funds 3 The Local Agency Investment Fund (LAIF) is a pooled fund managed by the State Treasurer in which Metrolink is a voluntary participant. The majority of LAIF funds is restricted for Proposition 1B (Prop 1B) investments. Based on fiscal year 2012 Comprehensive Annual Financial Report (CAFR), Prop 1B funds can be used for rehabilitation, safety or modernization improvements, capital service enhancements or expansions, new capital projects, or for rolling stock procurement, rehabilitation or replacement. Funds invested in Bank of America Money Market Reserves relate to leveraged lease transactions. Based on fiscal year 2012 CAFR, Metrolink enters into lease agreements to lease rail cars and locomotives and simultaneously enters into sublease agreements with the lessees to lease them back. Metrolink receives proceeds which it uses to prepay future lease payments. Interest Amount Earned Total interest earned on LAIF for the period ended September 30, 2013 is $24,953. Total interest earned on Bank of America Money Market Reserves during the first quarter of FY is $371. Cash Sufficiency Approximately $19.4 million of cash is on hand as of September 30, It is important to ensure that billings are processed timely and efficiently to improve Metrolink s overall cash position and ensure that the current funds provide sufficient liquidity to meet the operating, capital program and third party agreement requirements over this period. Budget Impact There is no budget impact as a result of this status report. Prepared by: Metrolink Finance and Accounting Staff 3 Due to recent CFO turnover, Metrolink does not have access to the restricted accounts at this time. Metrolink is currently working with the bank to obtain proper authorization and approval. 10

17 TRANSMITTAL DATE: October 21, 2013 MEETING DATE: October 25, 2013 ITEM 7 TO: FROM: Planning and Finance Committee Metrolink Finance and Accounting Staff SUBJECT: FY Quarterly Accounts Receivable Status Report 1 Issue This report presents a preliminary status update of the accounts receivable as of twelve months ended June 30, 2013 for Southern California Regional Rail Authority (Metrolink or Authority). Recommendation The Planning and Finance Committee may receive and file this report. Background Metrolink s main sources of funds include passenger fares, dispatching and maintenance of way revenues, member agency operating and capital subsidies, and state and federal grant programs. As of June 30, 2013, the total outstanding accounts receivable balance is $84.3 million. Of the total accounts receivable, $46.6 million is current (less than 30 days) and $37.7 million are past due. Additionally, approximately $11.7 million of the accounts receivable are over 180 days. 2 Total Current 1-30 Days Past Due Days Past Due Days Past Due Days Past Due 181+ Days Pas Due Due from Other Agencies $ 34.8 $ 23.3 $ 1.4 $ 4.8 $ 3.6 $ 3.3 $ (1.5) Capital Contributions Receivable Recollectible Receivables (TPAs) Shared Used Receivables Operating Subsidies Receivables Fares Receivable Other Receivables (0.6) 0.0 (0.1) (0.4) (0.0) (0.0) (0.1) $ 84.3 $ 46.6 $ 1.8 $ 6.6 $ 10.8 $ 6.8 $ % 55.2% 2.1% 7.9% 12.8% 8.1% 13.9% 1 The report contains preliminary figures that have not been reconciled as part of the month-end close process. These figures are subject to change if additional details become available that will impact the information presented herein. 2 The accounts receivable data is obtained from Oracle r12. One Gateway Plaza, Floor 12 Los Angeles, CA

18 FY Quarterly Accounts Receivable Status Report Quarter Ended June 30, 2013 Transmittal Date: October 21, 2013 Meeting Date: October 25, 2013 Page 2 The accounts receivable is composed of: Fare Revenues Passenger fares for commuter rail services Capital Contributions Receivable Due from member agencies and other state and federal grantors such as Federal Transit Administration for capital and rehabilitation projects (i.e., construction and rehabilitation of rail infrastructure system). Due From Other Agencies Represents amounts due from other agencies such as CalTrans for construction related projects. Operating Subsidies Receivable Operating subsidies due every quarter from member agencies. Share Use Receivables Due from other rail partners such as Amtrak for sharing rail lines. Recollectible Receivable (Third Party Agreements) Due from both private and public agencies. Agreements with public agencies are typically funded by state and local grants for projects such as construction of rail crossings. Agreements with private agencies relate to projects such as third party safety training and design services. Staff is currently in the process of reconciling outstanding receivables for fare, dispatching, maintenance-of-way, capital program, and third party agreement revenue. Staff is also in the process of generating invoices to customers for expenditures paid and incurred by Metrolink, as well as reconciling detailed transactions in support of future billings. It is also important for staff to process the billings in a timely manner to help improve Metrolink s overall cash position. Capital/Rehab Projects Capital and rehabilitation projects have expenditures that are unbilled and are not included in the accounts receivable balance. Staff is currently in the process of compiling detailed expenditure records and supporting documentation to generate invoices to member agencies and grantors. There is a possibility that some of the total expenditures cannot be billed to the customers due to various reasons such as disallowed expenditures, insufficient grant funds, expired or expiring grants. Third Party Agreements Third Party Agreements have expenditures that are unbilled and are not included in the accounts receivable balance. Staff is in the process of reconciling third party agreements, and generating billings for outstanding expenditures and to offset prepaid balances (upfront fees). Expenditures incurred on third party agreements that are unbilled date back 5-10 years. Budget Impact There is no budget impact as a result of this status report. Prepared by: Metrolink Finance and Accounting Staff 12

19 TRANSMITTAL DATE: October 21, 2013 MEETING DATE: October 25, 2013 ITEM 8 TO: FROM: Planning and Finance Committee Metrolink Finance and Accounting Staff SUBJECT: FY Quarterly Accounts Receivable Status Report Quarter Ended September 30, Issue This report presents a preliminary status update on the accounts receivable for the first quarter ended September 30, 2013 for Southern California Regional Rail Authority (Metrolink or Authority). Recommendation The Planning and Finance Committee may receive and file this report. Background Metrolink s main sources of funds include passenger fares, dispatching and maintenance of way revenues, member agency operating and capital subsidies, and state and federal grant programs. As of September 30, 2013, total outstanding accounts receivable balance is $64.3 million. Of the total accounts receivable, $22.6 million is current (less than 30 days) and $41.6 million are past due. Additionally, approximately $12.9 million of the accounts receivable are over 180 days. 2 Account Description Total Current 1-30 Days Past Due Days Past Due Days Past Due Days Past Due 181+ Days Pas Due Operating Subsidies Receivables $ 19.4 $ 15.9 $ - $ - $ - $ 2.0 $ 1.5 Capital Contributions Receivable Due from Other Agencies Recollectable Receivables (TPAs) Fares Receivable Shared Used Receivables Other Receivables (2.8) - (0.0) (0.0) (2.1) (0.5) (0.1) $ 64.3 $ 22.6 $ 1.0 $ 0.2 $ 14.7 $ 12.8 $ % 35.2% 1.5% 0.3% 22.8% 20.0% 20.1% 1 The report contains preliminary figures that have not been reconciled as part of the month-end close process. These figures are subject to change if additional details become available that will impact the information presented herein. 2 The accounts receivable data is obtained from Oracle r12. One Gateway Plaza, Floor 12 Los Angeles, CA

20 FY Quarterly Accounts Receivable Status Report Quarter Ended September 30, 2013 Transmittal Date: October 21, 2013 Meeting Date: October 25, 2013 Page 2 The accounts receivable is composed of: Fare Revenues Passenger fares for commuter rail services Capital Contributions Receivable Due from member agencies and other state and federal grantors such as Federal Transit Administration for capital and rehabilitation projects (i.e., construction and rehabilitation of rail infrastructure system). Due From Other Agencies Represents amounts due from other agencies such as CalTrans for construction related projects. Operating Subsidies Receivable Operating subsidies due every quarter from member agencies. Share Use Receivables Due from other rail partners such as Amtrak for sharing rail lines. Recollectible Receivable (Third Party Agreements) Due from both private and public agencies. Agreements with public agencies are typically funded by state and local grants for projects such as construction of rail crossings. Agreements with private agencies relate to projects such as third party safety training and design services. Staff is currently in the process of reconciling outstanding receivables for fare, dispatching, maintenance-of-way, capital program, and third party agreement revenue. Staff is also in the process of generating invoices to customers for expenditures paid and incurred by Metrolink, as well as reconciling detailed transactions in support of future billings. It is also important for staff to process the billings in a timely manner to help improve Metrolink s overall cash position. Metrolink has made considerable progress since the fourth quarter ended June 30, 2013, as the accounts receivable decreased from $84.3 as of June 30, 2013 to $64.3 million as of September 30, Capital/Rehab Projects Capital and rehabilitation projects have expenditures that are unbilled and are not included in the accounts receivable balance. Staff is currently in the process of compiling detailed expenditure records and supporting documentation to generate invoices to member agencies and grantors. There is a possibility that some of the total expenditures cannot be billed to the customers due to various reasons such as disallowed expenditures, insufficient grant funds, expired or expiring grants. Third Party Agreements Third Party Agreements have expenditures that are unbilled and are not included in the accounts receivable balance. Staff is in the process of reconciling third party agreements, and generating billings for outstanding expenditures and to offset prepaid balances (upfront fees). Expenditures incurred on third party agreements that are unbilled date back 5-10 years. Budget Impact There is no budget impact as a result of this status report. Prepared by: Metrolink Finance and Accounting Staff 14

21 TRANSMITTAL DATE: October 21, 2013 MEETING DATE: October 25, 2013 ITEM 9 TO: FROM: SUBJECT: Planning and Finance Committee Metrolink Finance and Accounting Staff Passenger Fare Revenue and Ridership Report Twelve Months Ended June 30, Issue This item presents a preliminary analysis on passenger fare revenues and boardings for the twelve months ended June 30, 2013, and a comparison of prior year results and FY budget. Staff will be making a separate presentation on preliminary fare revenue and ridership data for the first quarter of FY , ended September 30, Recommendation The Planning and Finance Committee may receive and file this report. Background Southern California Regional Rail Authority (SCRRA) generates fare revenues through the sale of tickets at ticket vending machines, through the mail, via corporate sales and at ticket windows at Los Angeles Union Station. In addition, staff works closely with member agencies to support short term trains for special events and public relations opportunities, and to coordinate alternative transportation connectivity for passengers to and from their final destinations. The Passenger Fare Revenue and Ridership Report for twelve months ended June 30, 2013 is represented in detail in Attachment A. Line segments are further delineated by weekday and weekend statistics and results. Included in this report are comparisons of operating line fare revenues, ridership, and revenue per rider. System Results Metrolink operates commuter rail services across seven lines: 91, Antelope Valley, IEOC, Orange, Riverside, San Bernardino and Ventura. The fiscal year budget assumed 1 The Fare Revenue and Ridership report is based on preliminary data and information, and does not include year-end adjustments. Should additional details become available that will impact the information presented herein, the report will be adjusted accordingly. One Gateway Plaza, Floor 12 Los Angeles, CA

22 Passenger Fare Revenue and Ridership Report Transmittal Date: October 21, 2013 Meeting Date: October 25, 2013 Page 2 $88.3 million of fare revenue for 12.3 million passenger boardings. Approximately 92% of these boardings are on weekday train sets, with the remaining balance on weekend trains. For the twelve months ended June 30, 2013, system wide passenger fare revenue is $84.7 million, which is approximately $3.6 million less than budget. Stronger than expected increases in weekend revenue did not compensate for lower than budgeted weekday fare revenue and aggressive budget figures over last year. However, system wide passenger fare revenues increased over the prior fiscal period by $4.7 million or 6%. This increase is fairly consistent with the 7% fare increase initiated on July 1, Fare revenue and ridership were lower than expected. For the twelve months ended June 30, 2013, system wide boardings totaled 12.1 million passengers, representing a negative variance to budget of 2%, due in part by weakening demand for commute trips to Los Angeles. Despite employment gains for the Los Angeles County as a whole, the downtown employment market has been stagnant. The public sector continues to shed jobs while office vacancy rates in the central business district have been rising. Approximately 63% of all our riders come into Los Angeles. System wide passenger boardings increased over the prior fiscal period by 1%. Several marketing initiatives were implemented to increase passenger revenue and ridership. For weekday ridership, Corporate Program sales efforts were enhanced with a new campaign targeted at corporations in the Metrolink service area. This effort requires the Corporate Sales Manager to promote the program and identify new corporate partners throughout our region. A total of 17 new corporate partners signed up for the program during the fiscal year with nearly a third in south Orange County, confirming ridership growth trends in south Orange County. In addition to targeting commuters at their place of work, Metrolink targeted potential riders through a direct mail campaign at their home. The campaign targeted new residents who moved into a Metrolink station catchment area. The direct mail piece offered a trial ride on Metrolink and was mailed to 91,699 households. The overall redemption rate for the campaign was 6.65% and the return on investment was 420%. Furthermore, Call Center surveys indicate higher than average results in first time callers asking for information on the Metrolink system. Finally, weekend marketing campaigns to promote the Weekend Pass as a low cost alternative for travel to destinations, events, and explore Southern California remain strong and continue to grow. 16

23 Passenger Fare Revenue and Ridership Report Transmittal Date: October 21, 2013 Meeting Date: October 25, 2013 Page 3 ($ Thousands) Actual vs. Budget FY 13 vs. FY 12 FY 13 FY 13 FY 12 % % Budget Actual Actual Variance Variance Variance Variance Fare Revenue $ 88,297 $ 84,737 $ 79,986 $ (3,561) -4% $ 4,751 6% Boarding 12,290 12,075 11,978 (214) -2% 98 1% ($ Thousands) REVENUE BOARDINGS Actual vs. Budget FY 13 vs. FY 12 Actual vs. Budget FY 13 vs. FY 12 FY 13 % % FY 13 % % Actual Variance Variance Variance Variance Actual Variance Variance Variance Variance San Bernardino $ 24,241 $ (1,426) -6% $ 477 2% 3,457 (52) -1% (46) -1% Ventura 6,730 (211) -3% 355 6% 1,061 (73) -6% (53) -5% Antelope Valley 12,641 (883) -7% 164 1% 1, % 22 1% Riverside 9,446 (863) -8% 180 2% 1,256 (126) -9% (62) -5% Orange County 19, % 2,372 13% 2, % 128 5% Inland Empire/OC Line 7,397 (184) -2% % 1,198 (35) -3% % 91 Line 4,326 (672) -13% 212 5% 617 (8) -1% (9) -1% Total $ 84,737 $ (3,561) -4% $ 4,751 6% 12,075 (214) -2% 98 1% Note: Numbers in the report may vary due to rounding Revenue Passenger fare revenue represents cash or credit payment from riders across the seven operating lines of the rail system. Ticket types include individual rider purchases, as well as corporate partner sales, student and group sales. Revenues are allocated to the various member agencies using an allocation formula that is based on the fare s origin and destination station. Revenue - System Wide ($ Thousands) FY 13 Budget FY 13 Actual FY 12 Actual Actual vs. Budget FY 13 vs. FY 12 % % Variance Variance Variance Variance Weekdays $ 83,268 $ 79,462 $ 75,556 $ (3,806) -5% $ 3,907 5% Weekends 5,029 5,274 4, % % Total $ 88,297 $ 84,737 $ 79,986 $ (3,561) -4% $ 4,751 6% Note: Numbers in the report may vary due to rounding During this period, weekday revenues represent approximately 94% while weekend revenues are 6%. All seven operating line segments run trains Monday through Friday 17

24 Passenger Fare Revenue and Ridership Report Transmittal Date: October 21, 2013 Meeting Date: October 25, 2013 Page 4 (weekdays); four lines also provide Saturday and Sunday service. This includes the Antelope Valley, Inland Empire/Orange County, Orange County and San Bernardino lines. Boardings (Ridership) Boardings are estimated based on daily conductor counts on all trains. Each time a passenger boards a train, it is counted as a single boarding (also referred to as an unlinked trip ). Trips that require passengers to transfer to another Metrolink train to reach their final destination are counted as two unlinked trips, or as one linked trip. Linked trips correspond directly to origin-destination station pairs from ticket sales. Boardings - System Wide ($ Thousands) FY 13 Budget FY 13 Actual FY 12 Actual Actual vs. Budget FY 13 vs. FY 12 % % Variance Variance Variance Variance Weekdays 11,466 11,060 11,220 $ (406) -4% $ (160) -1% Weekends 823 1, % % Total $ 12,290 $ 12,075 $ 11,978 $ (214) -2% $ 98 1% Note: Numbers in the report may vary due to rounding Ridership on individual operating lines varies widely. System wide ridership showed an increase of 1% over fiscal year 2012 for the twelve months ended June 30, Budget Impact Based on the results of fiscal 2013, the Authority is $3.6 million under budget for fare revenue for FY Prepared by: Metrolink Finance and Accounting Staff Henning Eichler, Manager, Research + Planning 18

25 PASSENGER FARE REVENUE REPORT AND RIDERSHIP REPORT Issued by Finance Department PRELIMINARY DRAFT 19

26 Passenger Fare Revenue and Ridership Report - Systemwide (Thousands) Comparison FY FY Increase (Decrease) FY FY 13 Vs FY 12 Actuals Description Budget Actual Amount % Actual Amount % Revenue July $ 6,690 $ 6,940 $ 249 4% $ 6,194 $ % August 7,451 7,147 (304) -4% 6, % September 7,338 7,019 (318) -4% 6, % October 7,422 7, % 6, % November 7,002 7, % 6, % December 6,486 6,423 (63) -1% 5, % January 7,788 6,922 (867) -11% 7,067 (146) -2% February 7,163 6,863 (299) -4% 6, % March 7,647 7,241 (406) -5% 6, % April 7,612 7,337 (276) -4% 6, % May 7,884 7,258 (626) -8% 7, % June 7,814 6,843 (971) -12% 6,893 (50) -1% Totals Y-T-D Revenue $ 88,297 $ 84,737 $ (3,561) -4% $ 79,986 $ 4,751 6% Total FY $ 88,297 $ 84,737 $ (3,561) -4% $ 79,986 $ 4,751 6% Ridership* July 938 1, % % August 1,040 1, % 1, % September 1, (64) -6% 992 (37) -4% October 1,034 1, % % November % % December (51) -6% 907 (59) -7% January 1,083 1,009 (75) -7% % February (49) -5% 979 (33) -3% March 1,064 1,038 (26) -2% 1,053 (15) -1% April 1,059 1, % 1, % May 1,096 1,084 (13) -1% 1, % June 1, (155) -14% 1,016 (82) -8% Totals Y-T-D Ridership 12,290 12,075 (214) -2% 11, % Total FY ,290 12,075 (214) -2% 11, % Revenue Per Ridership July (0.22) -3% % August (0.60) -8% % September % % October (0.43) -6% 6.81 (0.06) -1% November % % December % % January (0.33) -5% 7.24 (0.37) -5% February % % March (0.21) -3% % April (0.28) -4% % May (0.49) -7% % June % % Average Y-T-D Revenue/Rider (0.17) -2% % Average FY Revenue/Rider $ 7.18 $ 7.02 $ (0.17) -2% $ 6.68 $ % * Ridership includes Rail to Rail The Fare Revenue and Ridership report is based on preliminary data and information, and does not include year-end adjustments. Should additional details become available that will impact the information presented herein, the report will be adjusted accordingly. 1 of 20 20