PLANNING AND FINANCE COMMITTEE

Transcription

1 PLANNING AND FINANCE COMMITTEE A P R I L 2 5,

2 SOUTHERN CALIFORNIA REGIONAL RAIL AUTHORITY ROSTER PLANNING & FINANCE COMMITTEE COUNTY MEMBER RCTC: Daryl Busch (Chair) 1 Vote or City of Perris Adam Rush or 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 Richard Katz Metro Appointee SANBAG: Larry McCallon 1 Vote or Pro Tem City of Highland Alan D. Wapner or Pro Tem City of Ontario OCTA: Carolyn Cavecche 1 Vote OCTA Appointee One Gateway Plaza, 12 th Floor Los Angeles, CA 90012

3 SOUTHERN CALIFORNIA REGIONAL RAIL AUTHORITY PLANNING AND FINANCE COMMITTEE FRIDAY, APRIL 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. 1. Call to Order 2. Pledge of Allegiance One Gateway Plaza, 12 Floor, Los Angeles, CA 90012

4 Planning and Finance Committee Agenda Transmittal Date: 18, 2014 Meeting Date: 25, 2014 Page 2 3. Public Comment REGULAR CALENDAR 4. Approval of Minutes March 28, 2014 Planning and Finance Committee Meeting Minutes. Staff recommends the Planning and Finance Committee approve the minutes of the March 28, 2014 Committee meeting. Page 1 5. Adoption of Grants Administration Policies and Procedures The Federal Transit Administration (FTA) conducted its triennial on site review finding that the Authority needs to develop and implement formal grant management procedures which include the process to close out grants within 90 days after final Electronic Clearing House Operations System (ECHO) drawdowns have been complete. The Authority must also develop a comprehensive closeout plan based on current project schedules. Staff recommends the Planning and Finance Committee approve and recommend the Board approve the adoption of the Grants Administration Policies and Procedures for closing out grants within 90 days after ECHO drawdown. Staff further recommends the Planning and Finance Committee approve and recommend the Board approve the adoption of the comprehensive grant closeout plan. While the adoption of these procedures and closeout plan has no impact on the budget, failure to adopt such policies and procedures may adversely impact the Authority s ability to receive federal and state grants. Page 6 6. FY Quarterly Accounts Receivable Status Report Quarter Ended March 31, This report presents a preliminary status update on the accounts receivable for the second quarter ended March 31, 2014 for Southern California Regional Rail Authority (Authority). The Authority 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. Of the total accounts receivable, $27.6 million is current (30 days or less), and $37.1 million are past due. Additionally, approximately $15.7 million of the accounts receivable are over 90 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.

5 Planning and Finance Committee Agenda Transmittal Date: 18, 2014 Meeting Date: 25, 2014 Page 3 The Planning and Finance Committee may receive and file this report. There is no immediate budget impact as a result of this status report. Page FY Quarterly Investment Report Quarter Ended March 31, 2014 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 quarter ended March 31, The Authority is currently managing a portfolio of $74.3 million in cash, cash equivalents, and investment funds. The Planning and Finance Committee may receive and file this report. There is no budget impact as a result of this status report. Page Oracle Financial Information System (FIS) Update Staff will present a brief progress update regarding the Oracle Financial Information System (FIS). There is no written document. The Planning and Finance Committee may receive and file this report. 9. Passenger Fare Revenue and Ridership Report Quarter Ended March 31, 2014 This item presents a preliminary analysis on passenger fare revenues and boardings for the nine months ended March 31, 2014, and a comparison of prior year results and FY budget as detailed in Attachment A of the staff report. 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. The Authority s fare revenue is $4.6 million under budget for FY Page Finance Department Update An update will be provided on the status of accounting and finance issues. There is no written document. The Planning and Finance may receive and file this report.

6 Planning and Finance Committee Agenda Transmittal Date: 18, 2014 Meeting Date: 25, 2014 Page Member Agency Memorandum of Understand (MOU) Reporting In response to a request from the Board, staff will discuss the Authority s approach toward more effective management of Memorandum of Understandings (MOUs) with Los Angeles County Metropolitan Authority and Orange County Transportation Authority. Management efforts to be discussed will include quarterly status meetings between the agencies, project status reports, and other reporting efforts with the express purpose of providing the parties with current MOU status thereby avoiding MOU overruns. There is no written document. The Planning and Finance may receive and file this report. 12. Chair s Comments 13. Committee Member Comments 14. Adjournment

7 SOUTHERN CALIFORNIA REGIONAL RAIL AUTHORITY MINUTES OF THE SCRRA PLANNING AND FINANCE COMMITTEE MARCH 28, 2014 ITEM 4 COMMITTEE MEMBERS IN ATTENDANCE: VOTES RCTC: DARYL BUSCH (Chair) 1 METRO: MICHAEL ANTONOVICH 1 1 ARA NAJARIAN Richard Katz 2 SANBAG: LARRY McCALLON 1 Alan D. Wapner 3 OCTA: Carolyn Cavecche 1 STAFF: MICHAEL P. DePALLO, Chief Executive Officer DON DEL RIO, General Counsel SAM JOUMBLAT, Chief Financial Officer ALBERT SCALA, Chief of Operations Support 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 March 28, 2014 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 Cavecche led the group in the Pledge of Allegiance. 1 Director Antonovich arrived at the meeting at the end of discussion of Item No Director Katz arrived at the end of discussion on Item No. 7 and left 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 March 28, 2014 Transmittal Date: 18, 2014 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 January 24, 2014 Planning and Finance Committee Meetings Upon a motion by Director Najarian and seconded by Director Cavecche, the Planning and Finance Committee approved the minutes of the January 24, 2014 Committee meeting. There was no opposition and the motion passed unanimously. ACTION: The Planning and Finance Committee approved the January 24, 2014 Committee minutes. 5. Approval of Board Delegation of Treasurer to Chief Financial Officer Sam Joumblat, Chief Financial Officer, provided a brief background on this item as detailed in the staff report and requested approval of staff s recommendation. Upon a motion by Director Cavecche and seconded by Director Najarian, 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 approve the delegation of investing authority of Treasurer to the Chief Financial Officer. There was no opposition and the motion passed unanimously. 6. Delegate Authority to the Chief Executive Officer for the Purpose of Obtaining Financial Assistance Provided by the California Governor s Office of Emergency Services Anne Louise Rice, Strategic Programming and Development Manager, provided a brief background on this item as detailed in the staff report and requested approval of staff s recommendation. Director Cavecche questioned if these funds would be used to pay down the $18 million loan the Authority owes the Los Angeles County Metropolitan Transportation Authority (Metro), and requested a detailed account of the money to include the interest that had already been paid to Metro. She also requested staff provide the plan to pay Metro the remaining $10 million of this loan. Sam Joumblat, Chief Financial Officer, replied that staff 2

9 Planning and Finance Committee Meeting Minutes March 28, 2014 Transmittal Date: 18, 2014 Page 3 was in the process of looking at the loan but needed to perform a historical investigation, and would provide that information at the Board meeting 4. Upon a motion by Director McCallon and seconded by Director Najarian, 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 approve the delegation of authority to the Chief Executive Officer for the purpose of obtaining financial assistance provided by the California Governor s Office of Emergency Services. There was no opposition and the motion passed unanimously. 7. Three-Year Historical Investment Analysis ( ) Sam Joumblat, Chief Financial Officer, delivered a presentation highlighting the Authority s investment performance relative to the five member agencies during the three-year calendar period of 2011 through A copy of the presentation is available upon request from the Committee Secretary. ACTION: The Planning and Finance Committee received and filed this report. 8. Strategic Plan Update Roderick Diaz, Director, Planning and Development, delivered a presentation and provided a brief background on this item as detailed in the staff report. He provided an overview of the February 28 March 1, 2014 Board Workshop in which five major principles were developed to be pursued as the strategic plan continued to be formed. Director McCallon noted the one-day Strategic Plan Workshop would take place on 27, 2014 in Orange County. A copy of the presentation is available upon request from the Committee Secretary. ACTION: The Planning and Finance Committee received and filed this report. 4 The Finance Department performed a historical investigation and reported at the 11, 2014 Board of Directors meeting that the Authority has on its books an outstanding loan from Metro with a principal amount of $18,000,000. This loan was entered into between the two parties on November 23, The funds were received by the Authority on December 15, The annual interest rate on the loan is 3.52%, compounded monthly, commencing on the date of receipt of funds. The Authority made two interest payments to Metro, the first was in FY in the amount of $348, and the second was in FY in the amount of $645, The principal and any accrued interest outstanding at the time is due on or before 30, The Authority intended to repay the loan with proceeds from its CalEMA Proposition 1B Transit Security Grant Program funds. Staff is currently in the process of researching repayment options. 3

10 Planning and Finance Committee Meeting Minutes March 28, 2014 Transmittal Date: 18, 2014 Page 4 9. Finance Department Update Sam Joumblat, Chief Financial Officer, delivered a presentation and provided a brief background on this item. He discussed the following four areas as of March 21, 2014: Cash Position Accounts Receivables Accounts Payables Restricted Accounts $29 million approximate. $70.8 million balance. Continue to work with the member agencies for reconciliation and estimated that these issues should be resolved shortly. $42.8 million balance. $39 million balance in the Local Agency Investment Fund (LAIF) account balance and approximately $4 million in the Bank of America money market reserves A copy of the presentation is available upon request from the Committee Secretary. ACTION: The Planning and Finance Committee received and filed this report. 10. Chief Executive Officer s Report Michael DePallo, Chief Executive Officer reported on the items listed below: AQMD Funded Events: Grants from the Mobile Source Air Pollution Reduction Review Committee (MSRC) have been awarded to the Authority to offer alternative transportation during major events to help reduce air pollution. These events include: Dodger Express shuttle service Throughout the baseball season, fans are encouraged to use train service on the San Bernardino line and connect free to the Dodger Express shuttle at Los Angeles Union Station to and from the game. A special Rail Series service for the Dodgers/Angels series games ran yesterday and today and would also run on August 4-5 providing service on the Orange County line. Tickets to the Rail Series will be $7.00 round-trip. Angels Express Orange County Transportation Authority (OCTA) received funding from MSRC to fund Metrolink Angels Express trains for all Angel s weekday home games that start at 7:05pm. Angels express trains also provide service from Riverside to Anaheim for all Friday-night home games. The round trip ticket for the Angels Express is $7 for the general public, $6 for seniors and $4 for children between the ages of 6 and 18. Auto Club Speedway On Sunday, March 23 rd for the 3 rd straight year, Metrolink operated a special train to the 2014 Auto Club 400 NASCAR race. There were more than 1,200 tickets sold which were the highest ticket sales seen since this service was reintroduced several years ago. 4

11 Planning and Finance Committee Meeting Minutes March 28, 2014 Transmittal Date: 18, 2014 Page 5 Social Media Milestones This week, Metrolink reached its 20,000 th Facebook fan, which is the largest commuter rail Facebook community in the nation. Additionally, last week Metrolink reached 100,000 video views on YouTube. CMAA Award The Authority was honored at the Construction Management Association of America (CMAA) Southern California Chapter 22 nd Annual Awards Gala on March 27, 2014 where it was named a 2014 Distinguished Owner Honoree, and he accepted the award on the Authority s behalf. 11. Chair s Comments Chair Busch stated the Perris Valley Line (PVL) groundbreaking and ribbon cutting event was held on February 21, 2014 at March Field at 10:00 a.m. Michael DePallo attended the event and also visited the Empire Railway Museum with Joe Fuller, President/CEO, and George Huckabee, Vice President who presented Michael DePallo with a framed map of the old Pacific Electric Railway System which ran throughout Los Angeles. 12. Committee Member Comments There were no additional comments from the Committee members at this time. 13. Adjournment There being no further business for consideration the meeting was adjourned at 10:31 a.m. Respectfully submitted, Carrie M. Bates Planning and Finance Committee Secretary 5

12 SOUTHERN CALIFORNIA REGIONAL RAIL AUTHORITY TRANSMITTAL DATE: 18, 2014 MEETING DATE: 25, 2014 ITEM 5 TO: FROM: Planning and Finance Committee Roderick Diaz, Director, Planning and Development SUBJECT: Adoption of Grants Administration Policies and Procedures Issue The Federal Transit Administration (FTA) conducted its triennial on site review from February 12-13, It issued a final report on March 13, 2014 that included a finding that the Authority needs to develop and implement formal grant management policies and procedures which include the process to close out grants within 90 days after final Electronic Clearing House Operation System (ECHO) drawdowns have been complete. The report also states that the Authority must develop a comprehensive closeout plan based on current project schedules. Recommendation Staff recommends the Planning and Finance Committee approve and recommend the Board adopt the Grants Administration Policies and Procedures, which include the process for closing out grants within 90 days after ECHO drawdown. Staff further recommends the Planning and Finance Committee approve and recommend the Board approve the adoption of the comprehensive grant closeout plan. Alternatives The Committee could elect not to recommend adoption, in which case, the schedule for responding to the FTA within the prescribed 90 day period which ends on 12, 2014, would likely be missed. Background Attached are four procedures that address the lifecycle of a grant: application, award and set up, reporting and closeout. These were developed, largely, based on updates to the informal procedures already in place. They also incorporate some content from sample procedures provided by the FTA reviewers. The procedures are uniform, each addressing scope, applicability and responsibility and identifying important reference citations. Finally, each contains a check list identifying the steps necessary to initiate and complete the procedure. They were written for all grant types; however, unique FTA requirements are highlighted in the procedures. One Gateway Plaza, 12 th Floor, Los Angeles, CA

13 Adoption of Grants Administration Policies and Procedures Transmittal Date: 18, 2014 Meeting Date: 25, 2014 Page 2 The comprehensive plan for closing out FTA grants is addressed in the fifth attachment. It prioritizes grants for closeout based largely on commentary in the Triennial Report. It also provides a general set of criteria for identifying grants ready for closure. The criteria will be used as part of the new, routinized closeout process, which will be implemented following substantial progress on closing the first set of prioritized grants identified via the Triennial report. The Authority recently hired a Grants Reporting and Funding Administrator for whom FTA grant closeout will be the top initial priority. As a result of this plan, the Authority s staff will be able initiate closeout on a prioritized list of grants aligned to a fixed closure schedule. Following Board approval, additional formatting may be required prior to distribution to the FTA. Budget Impact While the adoption of these procedures and closeout plan has no impact on the budget, failure to adopt such policies and procedures may adversely impact the Authority s ability to receive federal and state grants. Prepared by: Anne Louise Rice, Strategic Programming and Development Manager Chief of Operations Support Approval: General Counsel Approval: Chief Executive Officer Approval: 7

14 Southern California Regional Rail Authority Grants Management Procedures TITLE: Grant Application NO. GRANTS MGNMT -1 EFFECTIVE DATE: 9, 2014 REVISION: 0 PURPOSE: This procedure describes how SCRRA staff applies for grants that support SCRRA s operations, with a primary focus on its new capital and rehabilitation programs. APPLICATION: This procedure applies to all grant applications made in support of funding for which SCRRA is eligible via either grantor formula or discretionary grant. PROCEDURE: Please see the attached checklist that identifies the steps in applying for grants. DEFINITION OF TERMS: None. RESPONSIBILITIES: Grants Development has primary responsibility for the grant pursuit process. Within this process it is responsible for identifying and recommending grant application opportunities and submitting applications. Project Managers are responsible for providing scope, schedule, environmental documentation, budget and other necessary project information in support of grant applications. CEO, or his designee, is responsible for approving the grant application package. 8

15 Grants Application Grants Management - 1 REFERENCES: Federal: FTA Circulars D, (Proposed), D, B, FTA Master Agreement 23 CFR et. Seq. Notices of Funding Availability (various agencies and opportunities) FEMA Non Disaster Program Notices State: State announcements of funding availability (various and opportunities) Guidelines and Previously Executed Contracts for Various State Programs Caltrans Master Agreement Regional: Carl Moyer Funding Program Local: Various Local Measure Requirements 9

16 Grant Application Checklist Activity Responsible Party Deliverable Fulfillment of Grantor Requirement For FTA grants, following issuance of FTA apportionments, member agency Transportation Improvement Plan (TIP) submittal schedules and in coordination with the SCRRA budget preparation cycle: Grants Development Member agency funding amounts for SCRRA s rehab and capital budgets program are included in the proposed annual budget and in FTA grant applications FTA requires projects to be programmed in a current adopted TIP and funding requested must be consistent with funds available Ensure that funds programmed in the member agency Transportation Improvement Plans (TIP) are consistent with FTA s annual apportionment No later than 45 days before a grant application is due: Determine if SCRRA will submit an application Grants Development with approval from CEO, and if member agency funds are required, approval of affected member agency(ies) Confirmation of project(s) to be submitted for grant application Project(s) proposed for funding will be considered priority project(s), if identified in the five year rehab and capital lists, TIPs, member agency and statewide long range plans and approved annual budgets In the course of business, sometimes unexpected events may occur, elevating the urgency of a project(s) otherwise not planned for or considered a lower priority No later than three weeks before a grant application is due: Grants Development Draft application for review by relevant parties Other considerations will include: matching requirements and opportunities to leverage other funds, project phasing to capitalize on opportunities to seek funding for design as well as construction phases that can be funded incrementally; unique procurement requirements that might make the proposed project more competitive (ie lease v buy); and use of pre award spend authority None prescribed. Prepare draft application Within 1.5 weeks of grant submittal deadline: Grants Development Grant application with CEO signature None prescribed Finalize and submit grant application Prepare member agency support letters and transmit for signature 10

17 Grants Application Grants Management - 1 Activity Responsible Party Deliverable Fulfillment of Grantor Requirement Within grantor prescribed dates: Grants Development (lead) Grants Finance (lead on preparing financial workbook, as required by grantor) Prepare certifications and assurances and related documents, if grantor requires Obtain MPO concurrence for FTA grants Completed certifications and assurances, which may, depending on grantor requirements, also include board resolution, authorized agent form, financial workbook Various grantor requirements including FTA and Cal OES certs and assurances 11

18 Southern California Regional Rail Authority Grants Management Procedures TITLE: Grant Award and Set Up NO. GRANTS MGNMT -2 EFFECTIVE DATE: 9, 2014 REVISION: 0 PURPOSE: This procedure describes how grant awards are executed, processed and communicated within SCRRA. APPLICATION: This procedure applies to all grant awards received as a result of successful applications for either grants awarded on formula or discretionary basis. PROCEDURE: Please see the attached checklist that identifies the steps in grant award and set up. DEFINITION OF TERMS: None. RESPONSIBILITIES: Grants Development holds primary responsibility for the grant award and setup process. It is responsible for facilitating grant execution, which includes securing grant certifications and assurances, preparing a grants control form that summarizes grant terms including authorized expenditure start and end dates, billing instructions together with matching requirements, and any special grant conditions. The control form will not be issued without a project number and confirmation from the Finance group that the project is set up in the financial management system. Once the grants control form is issued, this group will inform affected parties, including affected parties including Project Managers, PMO, Finance and Procurement about grant terms that support the project(s). This may include a kick-off meeting or written correspondence, as necessary. 12

19 Grant Award and Set Up Grants Management - 2 Grants Finance is responsible for issuing a project number and ensuring the grant and its association to the appropriate project is set up in the financial management system. CEO, or his designee, is responsible for signing the grant contract on behalf of SCRRA. REFERENCES: Federal: FTA Circulars D, (Proposed), D, B, FTA Master Agreement Notices of Funding Availability (various) FEMA Non Disaster Program Notices Grant Agreements State: Guidelines and Previously Executed Contracts for Various State Programs Caltrans Master Agreement Grant Agreements Regional: Carl Moyer Funding Program Grant Agreements Local: Various Local Measure Requirements Grant Agreements 13

20 Grant Award and Set Up Procedure Check List Activity Responsible Party Deliverable Fulfillment of Grantor Requirement Within 5 working days of receipt of grant: -Secure CEO s signature approving grant award Grants Development Executed grant document Meets grantors requirement for highest level authorization to accept grants Within 5 working days of receipt of project number for new project funded in grant, or for existing project with approved changes from grantor, as required: -Issue Grant Control Form summarizing grant requirements and inform affected parties, this may include scheduling grant kick-off meeting Grants Finance notifies Grants Development when project numbers are open Grants Development disseminates Grants Control Form after Grants Finance issues project number Grant Control Form, addressing: -Funding availability dates, -Grant requirements, including billing instructions, including matching -Grantor reporting form -Grant closeout check list -Copy of executed grant document (some of these items take time to get from grantor, so they may follow) -As needed, schedule a meeting with PM, PMO, Contracts and Grants Finance to review terms of grant, including deadlines for getting third party contracts executed, as required. None prescribed 14

21 Southern California Regional Rail Authority Grants Management Procedures TITLE: Grant Reporting NO. GRANTS MGNMT -3 EFFECTIVE DATE: 9, 2014 REVISION: 0 PURPOSE: This procedure describes the preparation and submittal of grant reports by SCRRA staff. APPLICATION: This procedure applies to preparing reports for grantors who awarded formula-based or discretionary grants to SCRRA. PROCEDURE: Please see the attached checklist that identifies the steps in grant reporting. DEFINITION OF TERMS: None. RESPONSIBILITIES: Grants Development holds primary responsibility for compiling grant reports. It is responsible for preparing the narrative portion of the grant report and responding to grantor questions about the narrative report. It is also responsible for submitting the narrative and financial report to the grantor. Grants Finance is responsible for preparing the financial report and submitting it to Grants Development. Grants Finance is responsible for responding to grantor questions about the financial section of the grant report. Project Managers are responsible for providing information about projects necessary for Grants Development and Finance staff to respond to grantor questions. 15

22 Grant Reporting Grants Management-3 REFERENCES: Federal: FTA Circulars D, (Proposed), D, B, FTA Master Agreement Notices of Funding Availability (various) FEMA Non Disaster Program Notices Grant Agreements Grant Reporting Forms State: Guidelines and Previously Executed Contracts for Various State Programs Caltrans Master Agreement Grant Agreements Grant Reporting Forms Regional: Carl Moyer Funding Program Grant Agreements Grant Reporting Forms Local: Various Local Measure Requirements Grant Agreements Grant Reporting Forms 16

23 Grant Reporting Procedures Check List Activity Responsible Party Deliverable Fulfillment of Grantor Requirement days prior to grant report due date: Grants Development for narrative report(lead) Tracker with preliminary report data None prescribed Initiate data gathering for draft of narrative and financial report Grants Finance for financial report(lead) 20 days prior to grant report due date: Complete draft of narrative and financial report 2 10 days prior to grant report due date: Complete final narrative and financial report and submit to grantor PMO (support) Grants Development Grants Finance for financial (lead) PMO (support) Grants Development completes final narrative report Grants Finance completes financial report Grants Development submits narrative and financial report Note: for member agency MOU Draft narrative and financial reports Final narrative report Final financial report None prescribed FTA: Quarterly narrative and financial reports due by the 30 th of the month following the close of the quarter. The quarter ends on 3/31; 6/30; /9/30; 12/31. FEMA/Non Disaster: Twice yearly reports narrative reports due 30 days after 30 and December 31. Quarterly financial reports due by the 30th of the month following the close of the quarter. The quarter ends on 3/31; 6/30; /9/30; 12/31. FRA: Quarterly narrative and financial reports due by the 30 th of the month following the close of the quarter. The quarter ends on 3/31; 6/30; /9/30; 12/31. STATE: Prop 1B: TCIF: Quarterly narrative and financial reports due one week after the quarter ends. The quarter ends on 3/31; 6/30; /9/30; 12/31. SLPP: Twice yearly narrative and financial reports due 30 days after 30 and December 31. HRCSA: Monthly status reports the first Friday of the month; quarterly narrative and financial reports due one week after the quarter ends. The quarter ends on 3/31; 6/30; /9/30; 12/31. Intercity Rail (including federal PTC grant): Quarterly narrative and financial reports due by the 15 th of the month after the quarter ends. The quarter ends on 3/31; 6/30; 9/30; 12/31. 17

24 Grant Reporting Grants Management-3 Reporting Schedule Continued PTMISEA(1): Direct to SCRRA, under Sect 99314: Semi annually, narrative and financial, 45 days after 6/30 and 12/31. PTMISEA(2) From Member Agency, under Section 99313: Semi annual narrative and financial reports due 2/1 for the period 7/1 12/31 and 8/1 for the period 1/1 6/30. CSTGP (1):Direct to SCRRA: Semi annually, narrative and financial grant reporting cycle is 10/1 3/31, report due 4/30; and 4/1 9/31, report due 10/31. CTSGP (2) From Member Agency: Semi annual narrative and financial reports due 4/15 for the period 10/1 3/31 and 10/15 for the period 4/1 9/30. Prop 1A: Intercity Rail: quarterly narrative and financial reports due on the 15 th of the month after the quarter ends. The quarter ends on 3/31; 6/30; 9/30; 12/31. STIP: Quarterly narrative and financial reports due by the 30 th of the month following the close of the quarter. The quarter ends on 3/31; 6/30; /9/30; 12/31. REGIONAL: Depends on grant SCAQMD narrative and financial reports generally quarterly, due by the 2 nd Friday of the month following 3/31; 6/30; 9/30; 12/31. LOCAL: Closeout requirements vary, see agreements, for member agency annual MOUs, narrative and financial reports due monthly. 18

25 Southern California Regional Rail Authority Grants Management Procedures TITLE: Grant Closeout NO. GRANTS MGNMT -4 EFFECTIVE DATE: 9, 2014 REVISION: 0 PURPOSE: This procedure describes the how grants are closed out at SCRRA. APPLICATION: This procedure applies to all grants with closeout requirements from grantors who award funds on a formula or discretionary basis to SCRRA. PROCEDURE: Please see the attached checklist that identifies the steps in grant closeout. DEFINITION OF TERMS: None. RESPONSIBILITIES: Grants Development holds primary responsibility for facilitating grant closeout. It is responsible for preparing a closeout plan with grants targeted for closeout. It is also responsible for leading grant closeouts, which includes convening a cross departmental working group of PMs, PMO, Finance and Contracts to plan and implement closeouts. This department prepares the narrative report and combines it with the financial report, submitting the total closeout package to the grantor. Grants Finance is responsible for preparing all financial billings, drawdowns and reports associated with closeout. Project Managers are responsible for supplying responses about the final disposition of their projects. CEO signs official documentation requesting grant closeout. 19

26 Grant Closeout Grants Management -4 REFERENCES: Federal: FTA Circulars D, (Proposed), D, B, FTA Master Agreement 49 U.S.C., Section 5326, Transit Asset Management System, regulations forthcoming Notices of Funding Availability (various) FEMA Non Disaster Program Notices Grant Agreements Grant Closeout Forms Team User Web Guide, Chapter 8, New Closeout Process (to be replaced later in 2014 with Transit Award and Management System), guidelines forthcoming State: Guidelines and Previously Executed Contracts for Various State Programs Caltrans Master Agreement Grant Agreements Grant Closeout Forms Regional: Carl Moyer Funding Program Grant Agreements Grant Closeout Forms Local: Various Local Measure Requirements Grant Agreements Grant Closeout Forms 20

27 Grant Closeout Procedure Check List Activity Responsible Party Deliverable Fulfillment of Grantor Requirement 90 days before grant expiration or last FTA financial drawdown: -Initiate series of closeout meetings with cross departmental groups Grants Development (lead) Grants Finance (support) Project Manager (support) PMO (support) Matrix with grant balance, status of project(s), action plan to reduce/transfer funds in grant Closeout plan for FTA grants required per Triennial Review, final report issued 3/13/14. Procurement (support) 30 days before grant expiration or last FTA financial drawdown: -Substantially complete closeout meetings, begin draft final closeout report Grants Development (lead) Grants Finance (support) Project Manager (support) PMO (support) Action plan documenting how funds were reduced or transferred onto another eligible project; Rough draft of closeout report Follow-on to above requirement Procurement (support) days after grant expiration: -Complete and submit final narrative report -Complete and submit final financial report, including last reimbursement request, where applicable Grants Development completes final narrative report, receives financial report from Grants Finance and submits both reports Grants Finance completes financial report and provides to Grants Development Grants Finance submits reimbursement request to grantor Final Narrative Report Final Financial Report, Final Reimbursement Request FTA: Grantee completes closeout with 90 days from last financial drawdown (ECHO system). Inventory of equipment purchased and copy of commissioned study, if any, required to be submitted. FEMA: Grantee completes closeout within 90 days after end of performance period or Grant Adjustment Notification date issued (whichever is first). FRA: Grantee completes closeout within 90 days after end of performance period. STATE: Grantee complete closeout within 180 days after grant expiration date/or if grant provided on cash warrant basis, within 180 days of last project completion. Project Manager (support) PMO (support) REGIONAL: Closeout varies based on project, see schedules LOCAL: Closeout requirements vary, see agreements. Procurement (support) 21

28 Southern California Regional Rail Authority Grants Management Procedures TITLE: Federal Transit Administration Grant Closeout Plan NO. GRANTS MGNMT -4.1 EFFECTIVE DATE: 9, 2014 REVISION: 0 PURPOSE: This procedure describes how a closeout plan for the Federal Transit Administration (FTA) grants is prepared at SCRRA. APPLICATION: This procedure applies to all FTA grants which must be closed out within 90 days of the last Electronic Clearing House Operation (ECHO) online computer system draw down. PROCEDURE: 1.0 Internal Planning and Coordination a. Grants Reporting staff will keep a schedule of all open FTA grants and will update it on a quarterly basis. It will track expiration dates and grant drawdowns and will be informed by project status reports. This staff will lead closeout of FTA grants. b. Grants Reporting staff will initiate the closeout of a FTA grant if it meets any of the following criteria: i. Draw down of the grant has been completed to $0. ii. All required performance elements have been completed iii. The grant has not experienced any financial action in any twenty four month period. iv. A grant extension, where applicable, has been denied c. Each quarter, SCRRA Reporting staff will prepare a list of targeted FTA grants; focusing first on closing grants that that have remained open at least twelve months after project(s) completion was reported. It will also prioritize closing grants with small remaining amounts. If the Grants Reporting staff determines that grant closure can be expedited on any open grants that do not fall into the aforementioned categories, the Agency will prioritize those for closure as well. d. Once this list of targeted grants is prepared, SCRRA Reporting staff will convene an internal meeting with Grants Finance, Project Managers PMO and Procurement staff to plan for grant closeout. The meeting will occur at least 90 days before the Agency plans to submit a formal letter to FTA requesting grant closeout. The timing of sending the letter will be coordinated with the planned final ECHO draw down. 22

29 Grant Closeout Grants Management -4.1 FTA Grant Closeout e. If at the conclusion of the meeting(s) the targeted grant is confirmed to be ready for closure, grant closeout will commence and in accordance with FTA requirements. f. If at the conclusion of the meeting(s), the targeted grant is determined not to be ready for a timely closeout, the group will develop a go forward plan to resolve outstanding issues. g. Grants Reporting staff will initiate discussions with the FTA about the conditions that prevent timely closure. SCRRA staff will work with the FTA to determine an appropriate course of action. This may include transferring these charges to another qualifying, open grant. 2.0 Preparing and Submitting the Closeout Documentation i. SCRRA will prepare a closeout package that includes a letter requesting grant closure, financial report stating that funds from applicable sources have been expended and a report describing activities accomplished under the grant. An inventory of acquisitions purchased under the grant with a unit cost over $5,000 will be submitted as well as a copy of any study or report commissioned with FTA funds. h. All reports will be clearly identified as final and submitted in TEAM (Transportation Electronic Award Management) online computer system per the TEAM closeout report procedure. SCRRA will follow the successor format as prescribed in the forthcoming TEAM replacement, TrAMS (Transit Award Management System) online computer system. a. The Finance Department will prepare the financial reports required by the FTA and it will conduct all ECHO transactions. It will reconcile and de-obligate remaining funds, including those provided to sub recipients in the grant. If there are residual federal funds at the time of closeout, they will be returned to the FTA. b. ECHO drawdown transactions, separate from the final closeout report, will be managed by Finance. The timing of the last ECHO drawdown will be coordinated as part of the closeout plan. c. The Grants Reporting staff will prepare the close out request letter and the narrative report based on reporting details from the Project Managers who will also provide a copy of the relevant inventory and/or study, as prepared by Project Managers. It will submit the letter, financial and narrative reports. 3.0 Communicating Closeout Requirements to Contractors and Sub-recipients a. The Procurement Department will inform the contractor or sub-recipient of the requirement to maintain all books, documents, payroll documentation, accounting records, and other evidence pertaining to costs incurred under a federal grant awards during the period of the grant and for three years after the date SCRRA submitted a request for grant closeout. Grants Reporting Staff will provide that date to the Procurement Department. These records must be available for inspection by any authorized representative of SCRRA or the grantor. DEFINITION OF TERMS: Contractor v. Sub-recipient: Contractor received grant funds to provide SCRRA contracted service. A Subrecipient receives grant funds, as passed through by SCRRA, for the provision of SCRRA supporting service. If a sub-recipient receives FTA funds directly, it is unlikely to qualify as a sub-recipient; however, consultation with the FTA may be advised. 23

30 Grant Closeout Grants Management -4.1 FTA Grant Closeout ECHO (Electronic Clearinghouse Operation) online grant financial reimbursement system: The portion of the TEAM database that facilitates drawdown transactions. Final Financial Report: A financial summary of FTA grant expenditures at the time the grant is ready to close. It is only enabled once the Closeout Amendment in TEAM is created. Final Milestone Progress Report: A narrative report on project accomplishments at the time the grant is closed. It is only enabled once the Closeout Amendment in TEAM is created. TEAM (Transportation Electronic Award Management) online grant management system: The FTA s database for managing awarded grants. The new procedure for grant closeouts was established in 2013.TEAM will be replaced by TrAMs. TrAMS (Transit Award Management System) online grant management system: The successor FTA database for managing awarded grants, it is expected to be activated as soon as RESPONSIBILITIES: Grants Reporting is responsible for preparing a closeout plan for FTA grants that is updated quarterly. It is also responsible for leading grant closeouts, which includes convening a cross departmental working group of PMs, PMO, Finance and Contracts to plan and implement closeouts. This department prepares the grant closeout letter and narrative report and combines it with the financial report, submitting the total closeout package to the FTA. Grants Finance is responsible for preparing all financial billings, drawdowns and reports associated with closeout. Project Managers are responsible for preparing reports for inclusion in the closeout narrative and financial reports as described above. They are also responsible for providing an inventory of items purchased under the grant and a copy of any study commissioned under the grant. If multiple grants fund the project, Finance will determine the allocable amounts paid by the closing grant for the equipment and/or study, or any other item as required by the FTA. Procurement is responsible for closing the relevant contract vehicles associated with the grant. The CEO approves the grant closeout package. 24

31 Grant Closeout Grants Management -4.1 FTA Grant Closeout REFERENCES: Federal: FTA Circulars D, (Proposed), D, B, FTA Master Agreement 49 U.S.C., Section 5326, Transit Asset Management System, regulations forthcoming Notices of Funding Availability (various) FEMA Non Disaster Program Notices Grant Agreements Grant Closeout Forms TEAM User Web Guide, Chapter 8, New Closeout Process (to be replaced later in 2014 with Transit Award and Management System), guidelines forthcoming 25

32 SOUTHERN CALIFORNC IA REGIONAL RAIL AUTHORITY TRANSMITTAL DATE: MEETING DATE: TO: FROM: 18, , 2014 Planning and Finance Committeee Chief Financial Officerr ITEM 6 SUBJECT: FY Quarterly Accounts Receivable Status Report Quarter Ended March 31, Issue This report presents a preliminary statuss update onn the accounts receivable for the second quarter ended March 31, 2014 for Southern California Regional Rail Authority (Authority). Recommendationn The Planning and Finance Committee may receive and file this report. Background The Authority 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 March 31, 2014, total outstanding accounts receivable balance is $64.6 million. Of the total accounts receivable, $27.6 million is current (30 days or less), and $37.1 million are past due. Additionally, approximately $15.7 million of the accounts receivable are over 90 days. 2 1 The report contains preliminary figures that have not been reconciled as part off the month-end close process. These figures are subject to change if additional details become available that will impact the informationn presented herein. 2 The accounts receivablee data is obtained from Oracle R12. One Gateway Plaza, Floor 12 Loss Angeles, CA

33 FY Quarterly Accounts Receivable Status Report Quarter Ended March 31, 2014 Transmittal Date: 18, 2014 Meeting Date: 25, 2014 Page 2 Account Description Total 1-30 Days Days Days Days Over 180 Days OPERATING SUBSIDIES RECEIVABLE $ 23.7 $ 20.1 $ - $ - $ - $ 3.6 DUE FROM OTHER AGENCIES TPA RECEIVABLES CAPTIAL CONTRIBUTIONS RECEIVABLE SHARED USE RECEIVABLES FARES RECEIVABLE OTHER RECEIVABLES (0.6) (0.4) (0.0) (0.0) (0.0) (0.2) $ 64.6 $ 27.6 $ 17.2 $ 4.2 $ 4.9 $ % 42.7% 26.5% 6.5% 7.6% 16.7% The accounts receivable is composed of: Fare Revenues Due from customers purchasing 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 Due from other agencies such as California Department of Transportation (CalTrans) for construction projects. Operating Subsidies Receivable Due every quarter from the five member agencies relating to operating subsidies. Share Use Receivables Due from other rail partners such as Amtrak and Union Pacific Railroad Company for sharing rail lines. TPA (Third Party Agreements) Receivables Due from both private and public agencies for projects such as special train services, construction of capital projects on behalf of third parties and flagging services. Finance and Accounting is making progress towards reconciling and collecting outstanding receivables for fare, dispatching, maintenance-of-way, capital program, and third party agreement revenue. In addition, Finance and Accounting is in the process of generating invoices to customers for expenditures paid and incurred by the Authority, and compiling detailed transactions in support of future billings. It is important for staff to process the billings in a timely manner to help sustain the Authority s overall cash position. Capital and Rehabilitation Projects Capital and rehabilitation projects have billable expenditures that have not yet been billed 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. 27

34 FY Quarterly Accounts Receivable Status Report Quarter Ended March 31, 2014 Transmittal Date: 18, 2014 Meeting Date: 25, 2014 Page 3 Third Party Agreements TPA projects have expenditures that have not yet been billed and are not includedd in the accounts receivable balance. Staff is currently inn the process of reconciling third party agreements, and generating billings for outstanding expenditures and to offset prepaid balances. Budget Impact There is no immediate budget impact as a result of this status report. Prepared by: Finance and Accounting Chief of Operations Support Approval: General Counsel Approval: Chief Executive Officer Approval: 28

35 SOUTHERN CALIFORNIAA REGIONAL RAIL AUTHORITY TRANSMITTAL DATE: 18, 2014 MEETING DATE: 25, 2014 ITEM 7 TO: Planning and Finance Committee FROM: Chief Financial Officer SUBJECT: FY Quarterly Investment March 31, Report Quarter Ended Purpose Section VII of the Southern Californiaa Regional Rail Authority s (Authority) Annual Investment Policy equires that the Treasurer makee 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 quarter ended March 31, Recommendation The Planning and Finance Committee may receive and file this report. Background The Authority is currently managing a portfolio of $74.3 million in cash, cash equivalents, and investment funds. The portfolio is comprised of operating cash, restricted and unrestricted funds. Approximately $35.4 million of operating cash is currently on hand as of March 31, 2014, representing about 47.6% of total funds. The remaining balance is comprised of restricted and unrestricted funds totaling $38.9 million. Operating Account Cash on Hand Restricted/Unrestricted Bank of America Money Market Reserves Local Agency Investment Fund (LAIF) Amo ount $ TOTAL $ These figures are subject to change if additional details become available that will impact the information presented herein. One Gateway Plaza, Floor 12 Los Angeles, CA

36 FY Quarterly Investment Report Quarter Ended March 31, 2014 Transmittal Date: 18, 2014 Meeting Date: 25, 2014 Page 2 Restricted Funds Local Agency Investment Fund (LAIF) The LAIF is a pooled fund managed by the State Treasurer in which the Authority is a voluntary participant. It is an investment alternative for California s local governments and offers local agencies the opportunity to participate in a major portfolio that invests hundreds of millions of dollars in securities. The majority of LAIF funds is restricted for Proposition 1B (Prop 1B) investments. Prop 1B was approved by California voters on November 7, 2006 to authorize $19.9 billion of state general obligation bonds for specific transportation programs intended to relieve congestion, facilitate goods movement, improve air quality, and enhance the safety of the state s transportation system. Prop 1B funds are awarded to agencies based on various deciding factors such as anticipated project costs and potential benefits of the project. The Authority has submitted applications to the state and is a recipient of Prop 1B funds. It is important to note that the Prop 1B funds are strictly from the state and do not include federal funds. Prop 1B funds are designated for specific purposes such as rehabilitation, safety or modernization improvements, capital service enhancements or expansions, new capital projects or for rolling stock procurement, rehabilitation, or replacement. Bank of America (BofA) Money Market Fund The Authority has also established a separate restricted account held with BofA money market reserves. Funds invested in the BofA money market reserves have historically been, and continues to be, restricted by the Board in connection with the lease/leaseback program. As of March 31, 2014, approximately $3.7 million is invested in BofA money market reserves. Historically, the Board restricted the proceeds from the lease/leaseback transactions for capital maintenance of rolling stock to ensure it is in good condition to meet and maximize its useful life. Additionally, earnings from the transactions can also be used for specific purposes as approved and directed by the Board. Interest Amount Earned Total interest earned on LAIF for the quarter ended March 31, 2014 is $20,700. Investment Portfolio Compliance The composition of the investment portfolio as of March 31, 2014 complies with the provisions of the Authority s Annual Investment Policy as the LAIF account has a balance of $35.3 million and funds invested in BofA represent approximately 8.7% of the total investment funds. 2 2 Based on the Investment Policy as adopted on January 24, 2014, the maximum deposit allowed in the LAIF account is $50 million, and funds invested in Money Market Funds cannot exceed 20% of total investment funds. 30

37 FY Quarterly Investment Report Quarter Ended March 31, 2014 Transmittal Date: 18, 2014 Meeting Date: 25, 2014 Page 3 Cash Sufficiency Approximately $35.4 million of cash is on hand as of March 31, It is important to ensure that billings are processed timely and efficiently to improve the Authority s overall cash position and ensure thatt the current funds provide sufficient liquidity to meet the operating, capital program and third party agreementt requirements over this period. Budget Impact There is no budget impact as a result of this status report. Prepared by: Finance and Accounting Chief of Operations Support Approval: General Approval: Counsel Chief Executive Officer Approval: 31

38 SOUTHERN CALIFORNIA REGIONAL RAIL AUTHORITY TRANSMITTAL DATE: MEETING DATE: TO: FROM: 18, , 2014 Planning and Finance Committee Chief Marketing and Communications Officer ITEM 9 SUBJECT: Passenger Fare Revenue and Ridership Report Quarter Ended March 31, Issue This item presents a preliminary analysiss on passenger fare revenues and boardings for the nine months ended March 31, 2014, and a comparison of prior year results and FY budget. Recommendation The Planning and Finance Committee may receive and file this report. Background Southern California Regional Rail Authority (Authority) 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 Reportt for the period endedd March 31, 2014 is represented in detail in Attachment A. Line segments are further delineated by weekday and weekend statistics and results. Included in thiss report are comparisons of operating line fare revenues, ridership, and revenue per rider. System Results Metrolink operates commuter rail servicess across seven lines: 91, Antelope Valley, Inland Empire/Orange County (IEOC), Orange, Riverside, San Bernardino and Ventura. The fiscal year budget assumed $69.0 million of fare revenue for 9.3 million passenger 1 The Fare Revenue and Ridership report is based on preliminary dataa and information, and does not include quarter-end or month-end adjustments. The report is subject to change if additional details become available that will impact the information presented herein. One Gateway Plaza, Floor 12 Los Angeles, CA

39 Passenger Fare Revenue and Ridership Report Quarter Ended March 31, 2014 Transmittal Date: 18, 2014 Meeting Date: 25, 2014 Page 2 boardings. Approximately 94% of these boardings are projected for weekday train sets, with the remaining balance on weekend trains. For the nine months ended March 31, 2014, system-wide passenger fare revenue is $64.4 million, which is approximately a $1.2 million or 2% increase over the prior fiscal year. However, system-wide passenger fare revenues were $4.6 million less than budget. System-wide boardings for the nine months ended March 31, 2014 totaled 8.7 million passengers, which is 3% less than during the prior year, and a negative variance to budget of 7%. FY2013 Actual vs. FY2014 Actual Nine Months Ended March 31, 2014 ($ Thousands) FY14 Actual FY13 Actual Variance % Variance Fare Revenue $ 64,455 $ 63,298 $ 1,158 2% Boarding 8,737 8,986 (249) -3% FY2014 Actual vs. FY14 Budget Nine Months Ended March 31, 2014 ($ Thousands) FY14 Budget FY14 Actual Variance % Variance Fare Revenue $ 69,027 $ 64,455 $ (4,572) -7% Boarding 9,314 8,737 (578) -6% Nine Months Ended March 31, 2014 ($ Thousands) REVENUE BOARDINGS Actual vs. Budget FY13 vs. FY14 Actual vs. Budget FY13 vs. FY14 FY 14 % % FY 14 % % Actual Variance Variance Variance Variance Actual Variance Variance Variance Variance San Bernardino $ 17,957 $ (1,573) -9% $ (200) -1% 2,407 (234) -10% (172) -7% Ventura 4,952 (389) -8% (68) -1% 758 (35) -5% (26) -3% Antelope Valley 9,215 (1,172) -13% (226) -2% 1,373 (101) -7% (36) -3% Riverside 7,179 (523) -7% 63 1% 911 (49) -5% (22) -2% Orange County 15,593 (524) -3% 716 5% 1,896 (95) -5% (42) -2% Inland Empire/OC Line 6, % % % 65 7% 91 Line 3,334 (806) -24% 91 3% 447 (116) -26% (17) -4% Total $ 64,455 $ (4,572) -7% $ 1,158 2% 8,737 (578) -7% (249) -3% Note: Numbers in the report may vary due to rounding 33

40 Passenger Fare Revenue and Ridership Report Quarter Ended March 31, 2014 Transmittal Date: 18, 2014 Meeting Date: 25, 2014 Page 3 Fare revenue and ridership were lower than expected for the nine months ended March 31, 2014 due in part by weakening demand for commute trips to Los Angeles. The downtown employment market continues to be stagnant as the public sector continues to shed jobs and office vacancies continue to increase in downtown Los Angeles. According to a report from University of California, Los Angeles (UCLA), Los Angeles County lost more net jobs than any large metropolitan area in the nation between 1990 and In fact, the County experienced a 3.1% decline over the period. 2 Several marketing initiatives were implemented to increase passenger revenue and ridership. For weekday ridership, Corporate Program sales efforts have progressed steadily with five new corporate partners joining the program, bringing the total number of Corporate Partners to 163, the highest the Authority has had to date. A station marketing campaign and a direct mail campaign started in March The station marketing campaign is a concentrated marketing effort to increase ridership and revenue at select stations with the propensity to grow throughout the Metrolink service area. Staff identified stations based on geographic location, parking capacity and population trends. The direct mail campaign to new residents who move near a Metrolink station is underway and redemption rates are averaging 6 percent, a high percentage for direct mail. Call Center surveys continue to indicate a higher than average results in first time callers asking for information on the Metrolink system. Weekend ridership and revenue continue to grow compared to prior fiscal year despite the fare policy change that split the Weekend Pass to a Weekend Day Pass valid for travel either Saturday or Sunday. The Authority and the Member Agencies initiated a bi-weekly marketing meeting to coordinate efforts to promote Metrolink as a commuting option to work or destinations throughout the region. Additionally, a promotional program is underway to bring awareness of the Weekend Day Pass to visit destinations in Southern California. The nature of the ridership decline is due in part to losses in Monthly Pass ridership. Most of the decline was off-set by increases in 7-Day Pass sales. Revenue losses were limited due to the fact that 7-Day Pass ridership generated higher fare revenue per boarding. 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. 2 Orange County Register, LA Tops U.S. Metro areas in job losses, 1,

41 Passenger Fare Revenue and Ridership Report Quarter Ended March 31, 2014 Transmittal Date: 18, 2014 Meeting Date: 25, 2014 Page 4 FY2013 Actual vs. FY2014 Actual Nine Months Ended March 31, 2014 Revenue - System Wide ($ Thousands) FY 14 Actual FY13 Actual Variance % Variance Weekdays $ 60,511 $ 59,401 $ 1,110 2% Weekends 3,944 3, % Total $ 64,455 $ 63,298 $ 1,158 2% FY2014 Actual vs. FY2014 Budget Nine Months Ended March 31, 2014 Revenue - System Wide ($ Thousands) FY14 Budget FY 14 Actual Variance % Variance Weekdays $ 64,618 $ 60,511 $ (4,107) -6% Weekends 4,409 3,944 (465) -11% Total $ 69,027 $ 64,455 $ (4,572) -7% 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 (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. 35

42 Passenger Fare Revenue and Ridership Report Quarter Ended March 31, 2014 Transmittal Date: 18, 2014 Page 5 Meeting Date: 25, 2014 FY2013 Actual vs. FY2014 Actual Nine Months Ended March 31, 2014 Boarding - System Wide ($ Thousands) Weekdays Weekends FY 14 Actual 7, FY13 Actual Variance 8,246 (250) % Variance -3% 0% Total 8,737 8,986 (249) -3% FY2014 Actual vs. FY2014 Budget Nine Months Ended March 31, 2014 Boarding - System Wide ($ Thousands) Weekdays Weekends FY14 Budget 8, FY 14 Actual 7, Variance (535) (42) % Variance -6% -5% Total 9,314 8,737 (578) -6% Note: Numbers in i the report may vary due to rounding Ridership on individual operating lines varies widely. System wide ridership showed a decrease of 3% over FY for the nine monthss ended March 31, Budget Impact The Authority s fare revenue is $4.6 million under budget for FY Prepared by: Mark Nitti, Director, Customer Engagement Finance and Accounting Chief of Operations Support General Counsel Approval: Approval: Chief Executive Officer Approval: 36

43 Attachment A PASSENGER FARE REVENUE REPORT AND RIDERSHIP REPORT Nine Months Ended March 31, 2014 Issued by Finance Department PRELIMINARY DRAFT 37