StanCOG TDA Performance AuditTriennial Performance Audit i Stanislaus Council of Governments Executive Summary PMC was retained by the Stanislaus Council of Governments (StanCOG) to

Triennial Performance Audit Stanislaus Council of Governments

May 2013

Triennial Performance Audit Stanislaus Council of Governments

TABLE OF CONTENTS

Executive Summary ..................................................................................................................... i Section I ......................................................................................................................................1

Introduction – Initial Review of StanCOG Functions.................................................................1

Overview of Stanislaus County and StanCOG .......................................................................1

Audit Methodology .................................................................................................................9

Section II ...................................................................................................................................10

RTPA Compliance Requirements ...........................................................................................10

Section III ..................................................................................................................................22

Responses to Prior Triennial Performance Audit Recommendations .....................................22

Section IV..................................................................................................................................24

Detailed Review of StanCOG Functions .................................................................................24

Administration, Management and Coordination ................................................................24

Transportation Planning and Regional Coordination ..........................................................27

TDA Claimant Relationships and Oversight ........................................................................29

Public Information and External Affairs .............................................................................35

Grant Applications and Management ................................................................................36

Section V...................................................................................................................................38

Findings .................................................................................................................................38

Recommendations ................................................................................................................39

Appendix A ...............................................................................................................................40

Sample TDA Claim Standard Assurances ................................................................................40

Triennial Performance Audit i Stanislaus Council of Governments

Executive Summary

PMC was retained by the Stanislaus Council of Governments (StanCOG) to conduct its Transportation Development Act (TDA) performance audit for Fiscal Years (FY) 2009-10 through 2011-12. StanCOG is required by Public Utilities Code (PUC) Section 99246 to prepare and submit an audit of its performance on a triennial basis to the California State Department of Transportation (Caltrans) as a condition of receiving TDA funding. TDA funds are expended for StanCOG administration and planning of public transportation, and distribution to local jurisdictions for operations of public transit systems, non-motorized projects, and streets and roads. This performance audit is intended to describe how well StanCOG is meeting its administrative and planning obligations under the TDA, as well as to present a description of its organizational management and efficiency. To gather information for the TDA performance audit, PMC conducted interviews with agency staff, reviewed various documents, and evaluated StanCOG’s responsibilities, functions, and performance of the TDA guidelines and regulations. The audit comprises several sections, including compliance with TDA requirements, status of implementing prior audit recommendations, and review of functional areas. Findings from each section are summarized below, followed by recommendations based on our audit procedures. Compliance with TDA Requirements StanCOG has satisfactorily complied with applicable State legislative mandates for Regional Transportation Planning Agencies. Status of Prior Audit Recommendations Of the three prior performance audit recommendations, StanCOG has fully implemented one recommendation and partially implemented two recommendations related to developing a comprehensive set of policies and procedures guiding staff activity, and taking action on a classification and compensation report. The new Executive Director has been making effort on these issues. Functional Review 1. StanCOG underwent significant changes in its administrative staffing including the

appointment of an interim Executive Director in May 2012, with full time appointment in January 2013.

2. A notable accomplishment has been the 2011 Regional Transportation Plan (RTP) Update

which was adopted in July 2010. Although the 2011 RTP did not have the opportunity to fully comply with Senate Bill 375 (SB 375) as the greenhouse gas (GHG) emission targets

Triennial Performance Audit ii Stanislaus Council of Governments

were not yet established, it did set the foundation for the 2014 RTP by introducing Sustainable Communities Strategy (SCS) principles.

3. As the designated RTPA, StanCOG is responsible for the administration of the TDA program.

Revisions to the transit cost sharing procedures were made by the Management and Finance Committee and approved by the StanCOG Policy Board in April 2012. The transit cost sharing percentages to each transit system will be revisited in three years.

4. On an annual basis during this audit period, StanCOG was responsible for managing the

apportionment of between $14.3 and $17.2 million in Local Transportation Fund revenues and about $3 million in State Transit Assistance funds (annual apportionment figures).

5. StanCOG adopted new criteria for determining an “Unmet Transit Need” and what transit

needs are “Reasonable to Meet.” In September 2009, pursuant to Resolution 09-23, the Policy Board adopted revised Unmet Transit Need and Reasonable to Meet definitions.

6. StanCOG’s Public Participation Plan (PPP), adopted in September 2011, is intended to

provide direction for public participation activities to be conducted by StanCOG and contains the procedures, strategies, and techniques used by the COG for public participation.

7. The unmet transit needs process is promoted extensively to ensure ample participation and

comment from the public. Notices of Public Hearing are publicized in local daily and weekly newspapers. Flyers and placards printed in English and Spanish are distributed throughout the county including transit operators and the Stanislaus Intermodal Center.

Two recommendations are provided to improve StanCOG’s administration and management of the TDA program and its organization. Each recommendation is described in detail in the last chapter of this audit and is summarized below. 1. Develop and implement a checklist of standard assurances for TDA transit claims.

The purpose of the standard assurances form allows each operator to certify that all conformance requirements are satisfied to receive both LTF and STA funds. These standard assurances are typically listed in a checklist format in the TDA claims and should be reviewed and signed off by the transit claimant prior to submittal of the claim. StanCOG, in turn, would verify compliance for each applicable measure prior to approving the claim for funding. Examples are the timely conduct of the annual state controller and fiscal audits, submittal of CHP compliance certificates, and full use of available federal funding. The appendix to this audit shows a sample Standard Assurances list that could be included as part of the forms submitted by the transit claimants. This list, which would be signed and initialized by the appropriate claimant and used as a checklist by StanCOG, serves as an annual reminder of specific TDA compliance measures.

Triennial Performance Audit iii Stanislaus Council of Governments

2. Review transit farebox ratio requirements consistent with county Census population

growth.

The 2010 US Census shows that Stanislaus County’ population is close to 515,000, up from 447,000 from the last census. In regard to farebox recovery ratios, the urban farebox recovery ratio is 20 percent per the statute. The urban farebox ratios in the county are currently 15 percent as allowed under PUC Section 99268.12 which is applicable to county populations under 500,000 and serving an urbanized area. With the change in population between the census exceeding the 500,000 threshold, the urban farebox recovery ratios should be reviewed and adjusted to be in compliance with the statute. With an adjustment to the farebox ratio, StanCOG should consider granting time for the affected operators to meet the new ratio. As guidance, the TDA statute (PUC Section 99270.2) allows operators in urbanized areas up to five years to meet the new ratio.

Triennial Performance Audit 1 Stanislaus Council of Governments

Section I

Introduction – Initial Review of StanCOG Functions

The Stanislaus Council of Governments (StanCOG) retained PMC to conduct its Transportation Development Act (TDA) performance audit covering the most recent triennial period, Fiscal Years (FY) 2009-10 through 2011-12. StanCOG is required by Public Utilities Code (PUC) Section 99246 to prepare and submit an audit of its performance on a triennial basis to the California State Department of Transportation (Caltrans) as a condition of receiving TDA funding. This performance audit, as required by TDA, is intended to describe how well StanCOG is meeting its administrative and planning obligations under TDA.

Overview of Stanislaus County and StanCOG

Stanislaus County is located in the northern San Joaquin Valley bordered by San Joaquin County to the north, Merced County to the south, Alameda and Santa Clara Counties to the west and Calaveras, Mariposa and Tuolumne Counties to the east. The county was named after the Stanislaus River and established in 1854 as a former part of Tuolumne County. The total geographic area of Stanislaus County encompasses 1,514.67 square miles (1,493.79 square mile land area). The highest elevation is 3,804 feet at Mount Stakes located in Henry C. Coe State Park bordering Santa Clara County. The city of Modesto is the county seat and largest city. Other incorporated cities in order of population rank are Turlock, Ceres, Riverbank, Oakdale, Patterson, Newman, Waterford and Hughson. Notable unincorporated communities and census-designated places include Airport, Bret Harte, Bystrom, Cowan, Crows Landing, Del Rio, Denair, Diablo Grande, East Oakdale, Empire, Grayson, Hickman, Keyes, Monterey Park Tract, Parklawn, Riverdale Park, Rouse, Salida, Shackelford, Valley Home, West Modesto and Westley. There are no federally-recognized Native American tribal entities in Stanislaus County. A demographic snapshot of incorporated cities and the County is presented below in Table I-1:

Table I-1

Stanislaus County Demographics City/Jurisdiction 2010 US Census

Population Change from

2000 US Census Population 65 years & older

Land area (in square miles)

Ceres 45,417 31.2% 7.7% 8.0 Hughson 6,640 66.8% 10.8% 1.8 Modesto (County Seat) 201,165 6.5% 11.7% 37.1 Newman 10,224 44.1% 8.5% 2.1 Oakdale 20,675 33.4% 12.4% 6.1 Patterson 20,413 75.9% 6.3% 6.0 Riverbank 22,678 43.3% 8.4% 4.1


City/Jurisdiction 2010 US Census Population

Change from 2000 US Census

Population 65 years & older

Land area (in square miles)

Turlock 68,549 22.8% 11.7% 16.9 Waterford 8,456 22.1% 7.3% 2.4 Stanislaus County 514,453 15.1% 10.7% 1,514.7

Source: 2010 U.S. Census

The county and its incorporated cities saw significant growth between the 2000 and 2010 U.S. Census. Patterson saw the highest percentage increase in population followed by Hughson and Newman. The senior citizen population, comprised of residents aged 65 and over, is 10.7 percent countywide. The 2012 population for Stanislaus County is estimated to be 519,940 as reported by the State Department of Finance. Agriculture, distribution centers, food processing, government services and viticulture are mainstays of the local economy. During the 2000s, residential construction fueled economic growth as Stanislaus County became a bedroom community for commuters traveling to work in the Bay Area. Major highways traversing Stanislaus County include Interstate 5 (I-5) and State Routes (SR) 4, 33, 99, 108, 120, 132 and 165. SR-99 is the main north-south highway connecting the larger cities of Modesto, Ceres and Turlock. Interstate 5 runs north-south through the western portion of the county adjacent to the cities of Newman and Patterson. In its capacity as a Regional Transportation Planning Agency (RTPA) as designated by the Secretary of the State Business and Transportation Agency for TDA administration, StanCOG administers and allocates TDA revenues to eligible claimants, including transit operators and local jurisdictions for street and road purposes. Among its planning responsibilities, StanCOG is required to develop and approve short and long-range area-wide plans. In addition, StanCOG plans and programs local and regional transportation projects for funding and coordination with regional programs. StanCOG’s total budgeted TDA allocations for administration and plans/programs during the fiscal years addressed by this audit ranged from $576,812 in FY 2009-10, to $600,791 in FY 2010-11, to $675,046 in FY 2011-12. Role and Structure of StanCOG StanCOG was created in May 1971 under a Joint Powers Agreement (JPA) as the Stanislaus Area Association of Governments (SAAG) by the County of Stanislaus and the Cities of Ceres, Hughson, Modesto, Newman, Oakdale, Patterson, Riverbank, Turlock and Waterford. In May 1974, the JPA underwent its first revision. The agency was established under its current name and confirmed as an independent agency by a second JPA revision in June 2001. In December 2007, the JPA was amended to clarify StanCOG’s authority of eminent domain. The mission of StanCOG is stated as follows:


To provide planning coordination that enhances the quality of life in the Stanislaus region by working with local governments, state and federal agencies, and the public to create real solutions to regional transportation issues. This is guided by a vision that aims to create a dynamic transportation network that safely and efficiently moves people and goods, improves the region’s air quality and enhances the lives of the region’s residents. Therefore, the overall objectives of StanCOG are to:

1. Improve Mobility

2. Reduce Congestion

3. Improve Air Quality

In addition to its duties as the RTPA for Stanislaus County, StanCOG serves the following roles:

Local Transportation Authority (LTA) as designated by the Stanislaus Board of Supervisors, pursuant to the Local Transportation Authority and Improvement Act;

Area-wide Planning Organization (APO) as designated by the U.S. Department of Housing and Urban Development;

Metropolitan Planning Organization (MPO) as designated by the U.S. Department of Transportation;

Congestion Management Agency (CMA) as designated by the Stanislaus Board of Supervisors, pursuant to California Government Code, Chapter 2.6; and

Abandoned Vehicle Authority (AVA) as designated by the Stanislaus Board of Supervisors, pursuant to California Vehicle Code, Section 22710(a).

StanCOG has a budgeted staff of 14 members comprised of an Executive Director, a Finance Director, 1 Senior Regional Planner, 1 Personnel & Administration Manager, 1 Transit/Programming Manager, 5 Associate Planners, 1 Budget & Grants Coordinator, 1 Administrative Technician, 1 Accounting Clerk and 1 Administrative Clerk. The organizational chart shows the authorized staffing positions as presented in the latest Overall Work Plan (OWP):


StanCOG’s offices are located at 1111 “I” Street, Suite 308 in Modesto. Meetings of the StanCOG and standing committees are held in the Board Room at StanCOG. Staff provides support to the StanCOG Policy Board as well as to the advisory and standing committees described as follows: StanCOG Policy Board: The purpose of the Policy Board is to serve as the principal policy making body of StanCOG. The StanCOG Board serves as the COG’s principal governing body whose members are appointed by the member agencies. Membership of the Board is comprised of five representatives from the Stanislaus County Board of Supervisors; three representatives from the Modesto City Council; and one representative from each of the other eight City Councils in the county. A representative from Caltrans, District 10 serves as an “ex-officio” member of the Board. The Policy Board meets the third Wednesday of the month at 6:00 p.m. Executive Committee: The Executive Committee is an auxiliary body made up of members of the Policy Board: two representatives from the Stanislaus County Board of Supervisors, one representative from the City of Modesto, and two representatives from the other cities in the county, who are jointly selected by these cities. This committee is tasked with appointing members of the Citizens Advisory Committee, the Social Services Transportation Advisory Council, and the Bicycle and Pedestrian Advisory Committee. The Executive Committee meets quarterly or on an as needed basis.


Management & Finance Committee: This standing committee was formerly known as the Technical Advisory Committee (TAC) and is comprised of the County’s Chief Executive Officer and City Managers from each member agency and a non-voting “ex-officio” representative from Caltrans, District 10. The Management & Finance Committee advises the Policy Board on all matters in which StanCOG is involved and meets the first Thursday of the month at 3:00 p.m. Citizens Advisory Committee (CAC): The CAC is comprised of up to 15 residents of Stanislaus County, who provide recommendations on matters that go before the Policy Board. Members of the CAC are appointed by the Executive Committee for a four-year term. The CAC has been instrumental in initiating actions on issues, particularly with regard to transportation funding, bicycle planning, transit roadway safety improvements, and project delivery. The CAC is a standing committee that generally meets the first Wednesday of the month at 6:00 p.m. Social Services Transportation Advisory Council (SSTAC): The SSTAC is a standing committee statutorily (PUC 99238) created to serve a broad representation of youth, students, elderly, disabled persons, persons of limited means, social service agencies, the transit dependent, and transit providers. The SSTAC advises the Policy Board on any potential unmet transit needs and to advise StanCOG on transit issues. There are up to 11 residents of Stanislaus County who are appointed by the Executive Committee to serve on the SSTAC for a four year term. The SSTAC generally meets the first Tuesday of the month at 8:30 a.m. The minimum statutory make up of the SSTAC is comprised of the following:

1 Potential transit user 60 years of age or older

1 Potential transit user who is a person with a disability

2 Social Service providers for seniors

2 Social Service providers for persons with disabilities

1 Social Service provider for person of limited means

2 Consolidated Transportation Service Agency Representatives, including 1 representative from an operator.

StanCOG has several ad hoc and technical sub-committees that advise on various issues. These subcommittees include:

Planning & Programming Working Group

Technical Advisory Committee

Mobility Advisory Committee

Bicycle/Pedestrian Advisory Committee

Valley Vision Stanislaus Steering Committee


Planning & Programming Working Group: The Planning & Programming Working Group Membership was formed to work directly with StanCOG staff to develop better recommendations to the regular committees on critical project delivery issues. Technical Advisory Committee: The Technical Advisory Committee (TAC) is comprised of planning, public works, and transit personnel from the member agencies and a representative from Caltrans, District 10. The TAC is involved in most of the planning issues that are within the purview of StanCOG. The TAC also makes recommendations on projects funded from federal Regional Surface Transportation Program (RSTP) and Congestion Mitigation Air Quality (CMAQ) funds. Mobility Advisory Committee (MAC): In addition to the SSTAC, the MAC was created to provide ad hoc support to StanCOG’s Consolidated Transportation Services Agency (CTSA) and is primarily focused on identifying and addressing the transit needs of seniors and disabled persons. The make up the MAC is similar to that of the SSTAC. The MAC meets every other month. Bicycle/Pedestrian Advisory Committee (BPAC): The BPAC is comprised of members from each jurisdiction and appointed by the Executive Committee. The BPAC tasked with reviewing and recommending non-motorized and inter-modal transportation projects in the county. Most notably, the BPAC was created to advise the update and development of the Non-Motorized Master Plan. BPAC was typically held the first Tuesday of every other month at 5:30 p.m. Valley Vision Stanislaus Steering Committee: This committee was formed in 2011, to collaboratively address the requirements of SB 375, which calls on StanCOG to prepare an integrated land use and transportation document as part of all future Regional Transportation Plan (RTP) updates. Its members include a representative from each of the member agencies, as well as a representative from the Policy Board, the SSTAC, the BPAC, and the Local Agency Formation Commission (LAFCO). Valley Vision Stanislaus meetings are typically held the first Tuesday of the month at 1:00 p.m. Other StanCOG committees and regional colloboratives include the San Joaquin Valley Regional Policy Council and the San Joaquin Valley Regional Planning Agency Directors Committee. The 16 member San Joaquin Regional Policy Council is a partnership of RTPAs in the San Joaquin Valley created to build regional consensus on issues of mutual interest such as air quality, land use and transportation. Membership is comprised of two elected officials and one alternate appointed from each of the RTPA’s policy boards. Further regional cooperation is facilitated through the San Joaquin Valley Regional Planning Agencies Directors Committee, which is comprised of the eight Executive Directors from each of the RTPAs in the San Joaquin Valley. The Directors Committee provides a forum to discuss and collaborate on issues of regional importance, and that impact the entire region such as transportation, air quality, and advocacy efforts. The Directors Committee works on the staff


level at building consensus between the eight agencies on items that, when implemented by individual RTPAs results in a single vision for the entire San Joaquin Valley.

Directors Committee meetings are held regularly in alternating locations in the Valley. These meetings are open to the public and there is an opportunity on every agenda for the public to offer comments.

An organization chart of StanCOG and its committees, drawn from the FY 2011-12 Overall Work Program, is shown in the following figure.

Transit Operators StanCOG approves TDA fund claims for and monitors public transportation systems in the county. Each of the transit services in StanCOG’s jurisdiction is currently operated on a contract basis by the sponsoring local public agency. Public transportation in Stanislaus County consisted of five public systems. Each service is described in brief detail below: City of Ceres – Ceres Area Transit (CAT)/Ceres Dial-a-Ride (CDAR): CAT is a fixed-route service that operates service along four fixed routes within Ceres. The fourth route was added in August 2012, which operates as a tripper service two times per day during the week. All routes originate and terminate at CAT’s transfer hub located at the intersection of Hatch Road and Herndon Road adjacent to the K-Mart shopping center. Service days and hours for CAT vary according to route, but service operates daily. CDAR provides general public, curb to curb


demand response service within the CAT service area as well as to unincorporated areas adjacent to Ceres. CDAR operates Monday through Friday from 6:00 a.m. to 8:00 p.m., Saturday from 10:00 a.m. to 6:00 p.m., and Sunday from 8:00 a.m. to 4:00 p.m. The system utilizes 10 lift-equipped vehicles and transports over 75,000 riders annually. CAT and CDAR are administered by the City of Ceres and operated by a private contractor, Storer Transit Systems. City of Modesto – Modesto Area Express (MAX)/Modesto Area Dial-a-Ride (MADAR): As Modesto’s fixed route provider, MAX operates 21 routes plus two commuter services to the Altamont Commuter Express (ACE) station in Lathrop and the Bay Area Rapid Transit (BART) station in Pleasanton/Dublin. Service hours for MAX are Monday through Friday from 6:00 a.m. to 7:45 p.m.; Saturday from 7:45 a.m. to 7:00 p.m. and Sunday from 8:45 a.m. to 6:00 p.m. MADAR is a complementary demand response service within the Modesto Urbanized Area including unincorporated areas adjacent to Modesto such as Empire and Salida. MADAR primarily serves persons with disabilities and seniors 65 years of age and older. General public service is available during certain hours during the week and on Sunday. For seniors and the disabled, MADAR operates Monday through Friday from 4:45 a.m. to 6:00 p.m. and Saturday from 8:00 a.m. to 7:00 p.m. For the general public, MADAR is available Monday through Friday from 6:00 p.m. and 11:00 p.m. and Sunday from 8:00 a.m. and 6:00 p.m. During the audit period, MAX was operated by M.V. Transportation and MADAR continues to be operated by Storer Transit Systems. The contracts are administered through the Transit Division of the Modesto Public Works Department. Riverbank-Oakdale Transit Authority (ROTA): ROTA operated a general-public/demand-responsive service between and within the cities of Oakdale and Riverbank. The hours of operation were Monday through Friday from 6:30 a.m. to 5:30 p.m. ROTA did not operate on weekends and holidays. ROTA was jointly administered under a JPA involving the two cities and operated by a private contractor, Storer Transit Systems. The JPA was dissolved toward the end of 2012 and services integrated into Stanislaus Regional Transit (StaRT). County of Stanislaus – Stanislaus Regional Transit (StaRT): StaRT operates four modes of transit services with a fleet of 23 vehicles: intercity fixed route, flex route, local Dial-a-Ride, and the non-emergency Medi-van service to the Bay Area. Fixed routes connect most major cities and communities whereas demand response services provide localized service within the cities of Newman, Patterson and Waterford featuring designated fixed stops. The Eastside Shuttle and the Turlock/Modesto Shuttle provide intercity demand response service at specific time intervals throughout the day. The Waterford/Modesto Runabout is a flex route that combines a limited intercity fixed route with scheduled stops with demand responsive service. StaRT is administered by the County and operated by a private contractor, Storer Transit Systems. City of Turlock – Bus Line Service of Turlock (BLAST)/Dial-a-Ride Turlock (DART): The BLAST fixed route operates service along four fixed routes within the city of Turlock. All four routes originate and terminate at BLAST’s transfer hub located at the intersection of Dels Lane and


Hawkeye Avenue near Donnelly Park. Service hours for BLAST are Monday through Friday from 6:40 a.m. to 5:30 p.m. and Saturday from 9:25 a.m. to 4:00 p.m. DART provides complementary demand response service within the BLAST service area as well as to unincorporated areas adjacent to Turlock such as Denair. Within the BLAST service area, DART service is available only to persons with disabilities, seniors 65 years of age and older, Medicare card holders, and elementary school students. For trips outside of the BLAST service area, DART service is available to the general public. DART has the same service hours as BLAST within that service area. Outside of the BLAST service area, DART operates Monday through Friday from 9:00 a.m. to 4:00 p.m. and Saturday from 9:00 a.m. to 3:00 p.m. BLAST and DART are administered by the City of Turlock and operated by a private contractor, First Transit, Inc.

Audit Methodology

To gather information for this performance audit, PMC accomplished the following activities: Document Review: PMC conducted an extensive review of documents including various StanCOG files and internal reports, committee agendas and public documents. Interviews: PMC interviewed StanCOG staff as well as the transit operators to gain their perspective about the agency’s efficiency and economy. Analysis: PMC evaluated the responses from the interviews as well as the documents reviewed about StanCOG’s responsibilities, functions and performance to TDA guidelines and regulations. All of the activities described above were intended to provide PMC with the information necessary to assess StanCOG’s efficiency and effectiveness in two key areas:

Compliance with State TDA Requirements, and

Organizational Management and Efficiency. The remainder of this report is divided into four chapters. In Chapter II, PMC provides a review of the compliance requirements of the TDA administrative process. Chapter III describes StanCOG’s responses to the recommendations provided in the previous performance audit. In Chapter IV, PMC provides a detailed review of StanCOG’s functions, while Chapter V summaries our findings and recommendations. An appendix to the audit report includes a sample TDA claim standard assurances form.


Section II

RTPA Compliance Requirements

Fourteen key compliance requirements are suggested in the Performance Audit Guidebook for Transit Operators and Regional Transportation Planning Entities September 2008, which was developed by Caltrans to assess StanCOG’s conformance with the TDA. Our findings concerning StanCOG’s compliance with State legislative requirements are summarized in Table II-1.

TABLE II-1 StanCOG Compliance Requirements Matrix


Reference Compliance Efforts

All transportation operators and city or county governments which have responsibility for serving a given area, in total, claim no more than those Local Transportation Fund (LTF) monies apportioned to that area.

Public Utilities Code, Section 99231

StanCOG accounts for its claimants’ areas of apportionment and has not allowed those claimants to claim more that what is apportioned for their area. StanCOG utilizes a formula based on a Transit Transit Cost Sharing Procedures that allows for LTF funds to be pooled together and transit costs paid off the top. After transit costs are determined, the remaining LTF is made available to the jurisdictions for other transportation purposes according to a specified formula. For example, Modesto comprises 39 percent of Stanislaus County’s population but trends with the transit system show it serves 50 percent of the county’s transit ridership. Under the most recent update to the Transit Cost Sharing





Procedures, Modesto is allocated up to a 52 percent share. Conclusion: Complied.

The RTPA has adopted rules and regulations delineating procedures for the submission of claims for facilities provided for the exclusive use of pedestrians and bicycles.

Public Utilities Code, Sections 99233.3 and 99234

StanCOG provides guidance on its TDA Claims form for the submission of claims for pedestrian and bicycle projects. Through an annual apportionment process based upon population percentages provided by the State Department of Finance, each member agency is provided with the amount of Article 3 bicycle and pedestrian funds that can be claimed. Claims are approved by the councils and board of the member jurisdictions as well as the StanCOG Board of Directors. Items to be filed include an application for non-transit LTF funds along with a resolution from each jurisdiction. Conclusion: Complied.

The RTPA has established a social services transportation advisory council. The RTPAs must ensure that there is a citizen participation process which includes at least an annual public hearing.

Public Utilities Code, Sections 99238 and 99238.5

The SSTAC meets the first Tuesday of the month and participates on a number of issues, including the annual unmet transit needs process and hearings, and coordination of specialized





transportation services. The StanCOG Unmet Transit Needs Public Hearing is scheduled in the spring at StanCOG offices in Modesto. Conclusion: Complied

The RTPA has annually identified, analyzed, and recommended potential productivity improvements which could lower the operating costs of those operators which operate at least 50 percent of their vehicle service miles within the RTPA's jurisdiction. Recommendations include, but are not limited to, those made in the performance audit. A committee for the purpose of providing advice on productivity improvements may be formed.

The operator has made a reasonable effort to implement improvements recommended by the RTPA, as determined by the RTPA, or else the operator has not received an allocation which exceeds its prior year allocation.


Transit performance is discussed at monthly SSTAC meetings attended by the transit managers. StanCOG staff remain attentive to trends in performance and communicate with the operators when appropriate. StanCOG has not established a separate committee for the purpose of providing advice on productivity improvements (e.g. transit operators committee); however the SSTAC and the transit cost sharing meetings fulfill that function. The TDA performance audits, short range transit plans, and other transit studies that are developed provide an additional means for the identification and analysis of productivity. Conclusion: Complied





The RTPA has ensured that all claimants to whom it allocates Transportation Development Act (TDA) funds submits to it and to the State Controller an annual certified fiscal and compliance audit within 180 days after the end of the fiscal year (December 27). The RTPA may grant an extension of up to 90 days as it deems necessary (March 26).


StanCOG maintains record that all TDA claimants submit an annual certified fiscal and compliance audit. However, a few of the fiscal audits were submitted past the time extension allowed by state law. These include ROTA for FY 2012 and Turlock for FY 2012. The following fiscal audits were completed: City of Ceres – FY 2010 (Caporicci & Larson, Inc.) was completed March 24, 2011. FY 2011 (JJACPA, Inc.) was completed December 9, 2011. FY 2012 – (JJACPA, Inc.) was completed November 2, 2012. City of Modesto – FY 2010 (City of Modesto/Brown Armstrong) was completed November 30, 2010. FY 2011 (City of Modesto/Brown Armstrong) was completed February 28, 2012. FY 2012 – (City of Modesto/Brown Armstrong) was completed January 31, 2013. Riverbank-Oakdale Transit Authority (ROTA) – FY 2010 (Moss, Levy & Hartzheim, LLP) was completed March 25, 2011. FY 2011 (Clendenin Bird & Company PM) was completed March 20, 2012. FY 2012 – pending completion as





of this finding. County of Stanislaus – FY 2010 (R.J. Ricciardi, Inc.) was completed December 21, 2010. FY 2011 (R.J. Ricciardi, Inc.) was completed December 21, 2011. FY 2012 – (R.J. Ricciardi, Inc.) was completed December 19, 2012. City of Turlock – FY 2010 (City of Turlock/Caporicci & Larson, Inc.) was completed May 19, 2011. FY 2011 (City of Turlock/Caporicci & Larson, Inc.) was completed March 30, 2012. FY 2012 – pending completion as of this finding. Conclusion: Partial Compliance

The RTPA has designated an independent entity to conduct a performance audit of operators and itself (for the current and previous triennium). For operators, the audit was made and calculated the required performance indicators, and the audit report was transmitted to the entity that allocates the operator's TDA monies and to the RTPA within 12 months after the end of the triennium. If an

Public Utilities Code, Sections 99246 and 99248

For the current three year period, StanCOG has retained an independent entity, PMC, to conduct the audit of StanCOG. Macias Consulting Group was retained to conduct the previous audit for the three fiscal years that ended June 30, 2009. Conclusion: Complied





operator’s audit was not transmitted by the start of the second fiscal year following the last fiscal year of the triennium, TDA funds were not allocated to that operator for that or subsequent fiscal years until the audit was transmitted.

The RTPA has submitted a copy of its performance audit to the Director of the California Department of Transportation. In addition, the RTPA has certified in writing to the Director that the performance audits of operators located in the area under its jurisdiction have been completed.

Public Utilities Code, Section 99246(c)

StanCOG submitted a written letter to Caltrans on June 17, 2012 certifying compliance with this requirement. The letter was enclosed with the FY 2006-07 through FY 2008-09 triennial performance audit of StanCOG. A statement was also made in the letter indicating completion of the five transit operator audits. Conclusion: Complied.

The performance audit of the operator providing public transportation services shall include, but not be limited to, a verification of the operator's operating cost per passenger, operating cost per vehicle service hour, passengers per vehicle service mile, and vehicle service hours per employee, as defined in Section 99247. The performance audit shall include, but not be limited

Public Utilities Code, Section 99246(d)

The performance audits of the operators include all required TDA performance measures plus additional indicators to further assess each operator’s efficiency, effectiveness and economy with the use of TDA funds. Conclusion: Complied.





to, consideration of the needs and types of passengers being served and the employment of part-time drivers and the contracting with common carriers of persons operating under a franchise or license to provide services during peak hours, as defined in subdivision (a) of Section 99260.2.

The RTPA has established rules and regulations regarding revenue ratios for transportation operators providing services in urbanized and new urbanized areas.

Public Utilities Code, Sections 99270.1 and 99270.2

The PUC provision applies to a transit claimant under Article 4. The transit services in Stanislaus County encompass both rural and urbanized areas. Farebox recovery ratios established for each operator reflect the areas of the County served. The StanCOG Transit Cost Sharing Procedures manual provides farebox recovery standards for each operator. Operators in urbanized areas are required to meet a 15 percent farebox recovery ratio for fixed route service, and 10 percent for dial-a-ride (Modesto has a 15 percent systemwide ratio). County services are required to meet a 10 percent systemwide farebox recovery ratio.





PUC 99268.12 allows the farebox standard in urban areas to be lowered to 15 percent from 20 percent if the county’s population falls below 500,000. Since the 2010 Census, however, the County population has exceeded 500,000 residents. StanCOG may need to re-evaluate the farebox standard in light of the countywide population change. Conclusion: Complied, with a recommendation to address the farebox ratio for Article 4 claimants due to the county exceeding the 500,000 population threshold as of the 2010 Census.

The RTPA has adopted criteria, rules, and regulations for the evaluation of claims under Article 4.5 of the TDA and the determination of the cost-effectiveness of the proposed community transit services.

Public Utilities Code, Section 99275.5

StanCOG designated Innovative Paradigms/ Paratransit Inc. as the countywide CTSA in July 2010. As a result of a Transit Needs Assessment Study, StanCOG updated the unmet needs definitions to accommodate the study’s recommendations and implementation plan as an unmet transit need that is reasonable to meet. Beginning in FY 2010-11, the StanCOG board approved LTF funds for the CTSA. In March 2011, StanCOG adopted goals





and objectives, and performance standards for the CTSA. The CTSA’s role is to implement the transit study’s recommendations relating to providing resources to transit and social service agencies for coordination of human service transportation in the region. The CTSA has established a travel training program and is working on implementation of a volunteer driver program that will complement the existing services in the County.

Conclusion: Complied.

State transit assistance funds received by the RTPA are allocated only for transportation planning and mass transportation purposes.

Public Utilities Code, Sections 99310.5 and 99313.3, and Proposition 116

StanCOG allocates State Transit Assistance Funds (STA) for transit purposes only. Under the Transit Cost Sharing Procedures, all STA under this provision is claimed by the City of Modesto. Conclusion: Complied

The amount received pursuant to Public Utilities Code, Section 99314.3 by each RTPA for state transit assistance is allocated to the operators in the area of its jurisdiction as allocated by the State Controller’s Office.


According to the Transit Cost Sharing Procedures, STA funds under this provision are allocated to all eligible transit systems based on their respective fare revenue share. The annual apportionments show the County, Modesto, and Turlock as receiving STA funds in FY’s 2011 and 2012.





Conclusion: Complied.

If TDA funds are allocated to purposes not directly related to public or specialized transportation services, or facilities for exclusive use of pedestrians and bicycles, the transit planning agency has annually: Consulted with the Social

Services Transportation Advisory Council (SSTAC) established pursuant to Public Utilities Code Section 99238;

Identified transit needs, including:

Groups that are

transit-dependent or transit-disadvantaged;

Adequacy of existing transit services to meet the needs of groups identified; and

Analysis of potential alternatives to provide transportation alternatives.

Adopted or reaffirmed definitions of "unmet transit needs" and


StanCOG conducts the annual unmet transit needs process and hearing in consultation with the SSTAC. One of the primary responsibilities of the SSTAC is to advise StanCOG on existing public transportation needs. The definitions of “unmet transit needs” and “reasonable to meet” are reaffirmed in the report and findings of the unmet needs process are adopted through Board resolution. Evidence of published advertisement of the hearings in each jurisdiction is also provided in the report. LTF funds have only been allocated to streets and roads after completion of the unmet needs process. Conclusion: Complied.





"reasonable to meet";

Identified the unmet transit needs and those needs that are reasonable to meet;

Adopted a finding that there are no unmet transit needs, that there are no unmet needs that are reasonable to meet, or that there are unmet transit needs including needs that are reasonable to meet.

If a finding is adopted that there are unmet transit needs, these needs must have been funded before an allocation was made for streets and roads.

The RTPA has caused an audit of its accounts and records to be performed for each fiscal year by the county auditor, or a certified public accountant. The RTPA must transmit the resulting audit report to the State Controller within 12 months of the end of each fiscal year, and must be performed in accordance with the Basic Audit Program and Report Guidelines for California Special Districts prescribed

California Administrative Code, Section 6662

StanCOG has had an audit of its accounts and records performed for each fiscal year by a certified public accountant. For FY 2009-10, StanCOG retained the firm of Dedekian, George, Small & Markarian. For FYs 2010-11 and 2011-12, StanCOG retained the firm of Dedekian, George, Small & Makarian. The completion dates were: FY 2010: March 31, 2011





by the State Controller. The audit shall include a determination of compliance with the TDA and accompanying rules and regulations. Financial statements may not commingle with other revenues or funds. The RTPA must maintain fiscal and accounting records and supporting papers for at least four years following fiscal year close.

FY 2011: March 29, 2012 FY 2012: March 27, 2013 StanCOG also maintains fiscal and accounting records and supporting papers for at least four years following fiscal year close. Conclusion: Complied.

Findings from RTPA Compliance Requirements Matrix

StanCOG has complied with State legislative mandates for Regional Transportation Planning Agencies. The requirement for StanCOG to retain an independent auditor to conduct the performance audit has been met, as well as ensuring that the operator performance audits include the necessary performance indicators. The only exception pertains to the timely submittal of the annual fiscal and compliance audits by the TDA claimants, in which there was partial compliance. Pursuant to the Public Utilities Code, Section 99245, the claimants are required to submit annual fiscal and compliance audits to StanCOG and to the State Controller within 180 days following the end of the fiscal year or request a 90-day extension by StanCOG as allowed by law. Most fiscal audits were completed and submitted within the statutory timeframe; however a few claimants submitted audits past the time extension. While StanCOG remains in compliance with TDA state mandates, a recommendation is made to review and update the farebox ratio criteria for Article 4 claimants in response to the county exceeding the 500,000 population threshold.


Section III

Responses to Prior Triennial Performance Audit Recommendations

This chapter describes the StanCOG’s response to the recommendations included in the prior triennial performance audit. For this purpose, each prior recommendation is described followed by a discussion of StanCOG’s efforts to implement the recommendation. Conclusions concerning the extent to which the recommendations have been adopted by the agency are then presented. Prior Recommendation 1 The StanCOG Executive Director should establish a goal to complete a comprehensive set of policies and procedures by the end of FY 2010-11. Actions taken by StanCOG: This recommendation was prompted by the prior auditor’s observation that StanCOG lacked a formalized set of policies and procedures. The policies and procedures in question would clarify positions and roles within the organization as well as assign authority, responsibility, workflow, communication protocols and provide general guidance to staff. Although there have been steps taken toward the development of such a resource, a comprehensive set of policies and procedures has yet to be adopted. With turnover in the Executive Director position during FY 2012, the new Executive Director has indicated progress being made to review policies and procedures which will take time. The Employee Policies and Procedures Manual was updated in January 2012 to include changes to the benefits package. In addition, Caltrans recommended that StanCOG develop an Accounting Procedures Manual, which was adopted in the spring of 2012. Conclusion: This recommendation has been partially implemented. Prior Recommendation 2 The StanCOG Board should take action on the Classification and Compensation report while the information is still current. Actions taken by StanCOG: There was no action taken toward the development of a Classification and Compensation report during the audit period. The Executive Director is working toward evaluating the agency’s current salary structure and may consider an updated Classification and Compensation


study. The Employee Policies and Procedures Manual was updated in January 2012 to include changes to the benefits package. The current merit structure follows that of the County of Stanislaus, which consists on a series merit step increases based on length of service. The Executive Director would like to adopt a performance based system that would foster staff retention and reward staff for quality work. Conclusion: This recommendation has been partially implemented. Prior Recommendation 3 The StanCOG Executive Director should require the transit operators of Stanislaus County, City of Ceres, City of Modesto and the City of Turlock to submit, at a minimum, quarterly performance data at the Transit Operator meetings. Additionally, reports on the implementation status of outstanding triennial performance audit recommendations should be presented at the meetings on a quarterly basis. Actions taken by StanCOG: Transit Operator meetings are no longer convened; however, transit operators do present their performance data at the monthly SSTAC meetings. StanCOG requests additional data from operators when performance trends warrant further analysis. In addition, StanCOG staff will communicate with operators individually to discuss issues and concerns. Transit issues have also been raised and discussed during the RTP Update process, at the Sustainable Communities Strategies (SCS)/Valley Vision Stanislaus, and during the Unmet Transit Needs hearings. With regard to the implementation status of outstanding performance audit recommendations, these are reviewed with each operator on an individual basis. Conclusion: This recommendation has been implemented.


Section IV

Detailed Review of StanCOG Functions

In this section, a detailed assessment of StanCOG’s functions and performance as a RTPA during this audit period is provided. Adapted from Caltrans’ Performance Audit Guidebook for Transit Operators and Regional Transportation Planning Entities, StanCOG’s activities can be divided into the following activities:

Administration, Management and Coordination

Transportation Planning and Programming

TDA Claimant Relationships and Oversight

Marketing and Transportation Alternatives

Grant Applications and Management

Administration, Management and Coordination

This section discusses the overall administration of StanCOG’s functions, which include general administration, internal planning and achievements, Overall Work Program, and personnel management. General Administration StanCOG underwent changes in its administrative staffing while achieving a number of milestones during the audit period. The former Executive Director stepped down toward the end of May 2012. The Senior Regional Planner was appointed the role of Interim Executive Director for a six month period and was subsequently appointed by the Policy Board to serve as full time Executive Director in January 2013. StanCOG management has worked with the 16-member Policy Board to be further engaged in the agency’s regional initiatives while emphasizing the importance of prioritizing regional interests. One way the new Executive Director is committed to doing this is by meeting with each Board member one-on-one on a quarterly basis to discuss the role of the COG in a regional context as well as current issues. In addition, each new Board member receives an orientation packet describing the key roles and responsibilities of the COG. As part of the overall process of improving agency conditions and services, the Executive Director is reviewing additional measures including the COG member dues structure, which has not been adjusted since the 1970s.


Management personnel are comprised of a Finance Director, Senior Regional Planner, Transit/Programming Manager and Personnel & Administration Manager/Public Information Officer. The Finance Director oversees the TDA apportionments and allocations as well as other funding programs and grants. He is assisted by Budget & Grants Coordinator and the Account Clerk III. The Senior Regional Planner oversaw a staff of three associate planners engaged in both short and long-range planning initiatives including modeling, project delivery and the regional Blueprint process. The Senior Regional Planner position currently remains unfilled. The Transit/Programming Manager provides oversight of the county’s transit operators as well as planning and programming activities assisted by two associate planners. The Personnel & Administration Manager/Public Information Officer oversees office administration, human resources and public affairs and marketing for the COG. This position is assisted by an Administrative Clerk III and an Administrative Technician. There was staff turnover of about 20 percent over the past few years. Based on the 2009-2012 Employee Roster compiled for this audit, there were three employee separations of the 14 staff including the Executive Director. An Account Clerk III and an Associate Planner also left the agency. Over the same period, StanCOG hired one Account Clerk III, one Administrative Clerk III, one Associate Planner, and the Transit/Programming Manager. Internal Planning & Achievements StanCOG has demonstrated success in the delivery of vital infrastructure projects and updates to its essential planning documents and tools. These accomplishments have raised the regional profile of the COG with greater visibility and more favorable press coverage. A notable accomplishment has been the 2011 Regional Transportation Plan (RTP) Update which was adopted in July 2010. Although the 2011 RTP did not have the opportunity to fully comply with Senate Bill 375 (SB 375) as the greenhouse gas (GHG) emission targets were not yet established, it did set the foundation for the 2014 RTP by introducing Sustainable Communities Strategy (SCS) principles. The 2014 RTP update will include the first SCS for the Stanislaus County region, which aims to integrate land use planning and transportation planning in an effort to reduce greenhouse gas emissions and improved air quality. In concert with the RTP Update/SCS, StanCOG furthered its commitment to the San Joaquin Valley Blueprint process with the development of the Blueprint Planners Toolkit, an online resource for those jurisdictions interested in promoting and implementing Blueprint Smart Growth Principles. The StanCOG transportation model underwent major enhancements to address federal and state planning requirements for the 2011 RTP Update, the Federal Transportation Improvement Program (FTIP) along with the corresponding Air Quality Conformity Determination and the Congestion Management Process (CMP). The mode choice component of the StanCOG Model was also updated with the award of a $100,000 FTA Section 5304 Technical Assistance Grant. Also during the period, the Policy Board adopted the 2010 Regional Expressway Study (RES)


update in January 2011. The RES update provides a review of proposed expressway development based on population projections, travel demand forecasts and local and regional land use and transportation plans. The RES is a tool that is intended to be used by local agencies to guide and incorporate into their planning efforts. Overall Work Program The Overall Work Program (OWP) serves as StanCOG’s annual budget and program guide. The OWP identifies the specific work elements that StanCOG will undertake for the coming fiscal year. Each work element embodies a set of instructions for the administration, project management and planning of work to be carried out by staff and/or supplemented by consultants on an as need basis. Most of the work elements in the OWP address StanCOG’s state and federal planning requirements and is subject to federal and state guidance. Other work elements are also included in the OWP to address and resolve local transportation planning issues and priorities. The OWP is structured based upon StanCOG multi-faceted role as an MPO and RTPA. The Introductory section provides a synopsis of StanCOG’s purpose, organization and structure, staffing, planning priorities, public participation procedures and issues of regional importance. The Introductory section is followed by StanCOG’s MPO role and programs. The work elements include MPO coordination, federal grant administration, RTP development and implementation, transportation modeling, air quality planning and the congestion management process. The third section addresses StanCOG’s role as a consolidated regional planning agency. The work elements in this section include TDA administration, Abandoned Vehicle Authority administration, specific State Transportation Improvement Project (STIP) implementation and monitoring, Transportation Demand Management (TDM), and Blueprint implementation. Each work element contains an outline of work products, completion date, funding sources, staff and miscellaneous direct costs, consultant costs and in person monthly hours. The appendix section provides a roster of StanCOG board and committee members and staff, schedules of funding sources and expenditures, and federal and state agency certifications. Personnel Management Personnel management is under the purview of the Executive Director and the Personnel & Administration Manager/Public Information Officer. Management has expressed interest in evaluating StanCOG’s salary structure and instituting a performance-based model of employee compensation and development. The current salary structure is modeled on the County of Stanislaus’ structure of merit step increases. The motivation cited for moving toward a performance-based model is staff retention, in particular of technical staff such as modelers. The new structure would also reward employees for exceptional work performed. The current StanCOG Employee Handbook was adopted in February 2009 and last updated in January 2012. The Employee Handbook includes sections on employment policy,


compensation/work schedules, employee benefits, employee expenses, and miscellaneous office policies. StanCOG provides health, dental and optical insurance plans. Medical coverage is offered through Stanislaus County Partners in Health (SCPH), Anthem Blue Cross, and Kaiser Permanente. Health plan options also include high deductable plans with health savings account contributions. Dental coverage is offered through Delta Dental and vision coverage is offered through Vision Service Plan (VSP). Life insurance coverage in the amount of $10,000 is provided for each employee. Regular full-time employees with up to two years of service accrue up to 80 hours of annual vacation leave. Those employees with between 3 and 10 years of service accrue up to 120 hours and those with between 11 and 20 years of service accrue 160 hours of annual leave. Employees with 21 years of service and beyond accrue 200 hours of annual leave. In addition, employees accrue 3.7 hours sick leave per pay period or 96.20 hours annually. StanCOG employees are covered under the Stanislaus County Employees Retirement Association (StanCERA). StanCERA is a public employee retirement system operating under the County Employees Retirement Law of 1937. StanCOG observes the following holidays: New Year’s Day, Martin Luther King’s Birthday, Presidents’ Day, Memorial Day, Independence Day, Labor Day, Veteran’s Day, Thanksgiving, Day after Thanksgiving, Christmas Eve (four hours when holiday falls on a weekday) and Christmas. In addition, holiday observances include every Monday following a Sunday which falls on January 1, July 4, November 11 or December 25.

Transportation Planning and Regional Coordination

This functional area addresses planning functions required of StanCOG, including development of the Regional Transportation Plan, Transportation Improvement Program, and transit planning including performance monitoring and the short-range transit planning process. Additional transportation programs administered by the agency are also discussed. Regional Transportation Plan The Regional Transportation Plan (RTP) is StanCOG’s long-range planning document that guides the development of transportation in Stanislaus County over a 25-year horizon. The RTP demonstrates how Stanislaus County will better maintain, operate, and expand its transportation system in a financially constrained manner. It serves to expedite project approval and prioritization. In addition, the 2011 RTP incorporates sustainability principles pursuant to Assembly Bill (AB) 32 and Senate Bill (SB) 375. The document is updated every four years and is required by state and federal law. The current RTP was prepared and adopted in July 2010. StanCOG created five goals for the RTP:


1. Mobility: Improve the opportunity and ability of people to travel between jobs, schools, and homes; and to efficiently move goods;

2. Safety & System Preservation: Operate and maintain the transportation system to ensure public safety and to protect the region’s transportation investment;

3. Environmental Quality: Consider the environmental impacts when making transportation investments, and minimize direct and indirect impacts on the environment for cleaner air and natural resources;

4. Economic/Community Vitality: Foster job creation and business attraction, retention, and expansion by improving the movement of goods, services and our local workforce while revitalizing our communities; and

5. Social Equity: Promote and provide equitable opportunities to access transportation services for the full spectrum of the population. Ensure that economically, physically, and socially disadvantaged group have access to transportation services and share in benefits of transportation improvements.

The 2011 RTP contains four sections: Executive Summary; Regional Trends and Transportation Goals; Financial Plan; and Transportation Plan. Projects contained in the RTP were categorized into two tiers. Tier I Projects represent short and long-range improvements that are fully fundable from identified revenue sources and are likely to be programmed throughout the life of the RTP. Tier II Projects represent long-range projects that do not have full funding resources identified; yet are considered desirable for the region. This most current RTP provides a foundation for the 2014 RTP that will include a Sustainable Communities Strategy (SCS) that aims to integrate land-use planning and transportation planning with consideration given to reduced greenhouse gas emission targets and improved air quality. The 2011 RTP involved an extensive public participation process. The StanCOG compiled a Public Workshops Summary Report as part of the RTP that detailed public outreach efforts in Stanislaus County. Four workshops were held in the cities of Modesto, Oakdale, Patterson and Turlock during November 2009. The workshops were publicized by postcards, public notices in English and Spanish, press releases to local print media, personal phone calls and visits and the StanCOG Web site. There were a total of 109 attendees at the workshops, including 79 members of the public. Transportation Improvement Program StanCOG is responsible for preparing both the Federal Transportation Improvement Program (FTIP) and Regional Transportation Improvement Program (RTIP) for Stanislaus County projects that have been approved for federal and state funding. The FTIP is a listing of all federally funded and regionally significant projects spanning a four-year period updated every two years during even numbered years to demonstrate consistency with the RTP. This document is also


used to make a finding of air quality conformity with the applicable State Implementation Plan (SIP) before any federal funds may be expended on transportation projects. StanCOG prepares amendments as needed and works with state agencies, other regional agencies, and local agencies to coordinate implementation of the RTP through the FTIP. Federal regulations require that all projects funded with federal funds and regionally significant projects (state or locally funded projects) be included in an FTIP in order to receive the funds. During the audit period, StanCOG prepared the 2009 FTIP Amendment and the 2011 FTIP. The 2009 FTIP contained 20 formal and informal amendments that were processed and adopted. The 2011 FTIP was approved in July 2010 concurrently with the 2011 RTP. Funding sources identified in the FTIP include Congestion Mitigation and Air Quality (CMAQ), High-Priority Projects/Federal Demonstration Program, FTA Section 5307, FTA Section 5311, FTA Section 5316, FTA Section 5317, Highway Bridge Program, High Risk Rural Roads Program (HR3), Highway Safety Improvement Program (HSIP), Transportation Enhancement Program (TEA), Regional Surface Transportation Program (RSTP), and the Safe Routes to School Program. The development of the RTIP is guided by principles established by SB 45, which provides for mainly local control over the programming of projects for state and federal funding. The plan is financially constrained, meaning that only those projects with expected available funding could be included. The RTIP is updated every two years covering a five year planning horizon and submitted to the California Transportation Commission (CTC). The 2010 RTIP was adopted in February 2010 covers FY 2010-11 through FY 2014-15. The 2012 RTIP was adopted in December 2011 and covers FY 2012-13 through FY 2016-17. There was $29.417 million programmed into the 2012 RTIP, including $4.090 million carried over from the 2010 RTIP. Priority projects programmed include the SR-132 West Expressway (from Dakota Avenue to SR-99), the SR-99/Pelandale Avenue Interchange Reconstruction, North County Corridor and the SR-219 Kiernan Avenue Project.

TDA Claimant Relationships and Oversight

As the designated RTPA, StanCOG is responsible for the administration of the TDA program. This functional area addresses StanCOG’s administration and management of TDA. The sub-functions described include transit cost sharing procedures, administration of the program, provision of technical and managerial assistance to operators, TDA claims processing, and the conduct of the unmet transit needs process. Transit Cost Sharing Procedures In lieu of allocating LTF revenues based on a population formula, StanCOG follows PUC 99233.11 establishing the transit cost sharing formula that allocates LTF funding according to where the transit need is greatest. Transit cost sharing is intended to make the best use of LTF revenues by allowing these funds to be pooled together and transit costs to be paid off the top.


Once transit costs have been determined, the remaining LTF is made available to the jurisdictions for other eligible transportation purposes, such as streets and roads, based on a specified formula. Revisions to the transit cost sharing procedures were approved by the StanCOG Policy Board in April 2012. The Management and Finance Committee met to discuss revisions to the language and procedures. Changes included the following:

Amendments previously adopted by the Board, but not yet integrated into the document.

Language added to identify role of the CTSA in the transit cost sharing process.

Certain steps were revised to provide more clarity on the process itself, and to demonstrate compliance with TDA.

Minor changes were made to the language to reflect current implementation of the transit cost sharing process.

Various proposals to adjust the percentages allocated to each transit system were presented at the Management and Finance Committee. Transit performance and operations budgets trends were factors in the proposed allocations. The agreed to percentages by members of the Committee were modified in which Modesto receives a higher percentage and the County a lower percentage, compared to previous allocation percentages, with the other transit systems remaining relatively constant. The cost sharing percentages will be revisited in three years. While not part of the transit cost sharing debate, the topic of operators claiming under TDA Article 4 versus Article 8 was addressed by StanCOG. This was a separate issue that was raised by the transit operators in FY 2009-10 when several of them were experiencing problems with meeting farebox recovery, especially during the recession. The transit operators had requested to file their TDA claims under Article 8 (PUC Section 99400) instead of Article 4 (PUC 99262). If allowed to file under Article 8, the operators would request StanCOG to establish performance standards using alternative measurements such as a change in the farebox recovery ratio, or other performance metric, as a condition of receiving TDA. StanCOG researched the request for the change in filing status and advised that the operators did not qualify to file under Article 8. This was done by COG’s review of the TDA definitions for Operator, Operates, and Municipal Operator. As the operators contested this finding, StanCOG contacted the Caltrans Department of Mass Transportation (Caltrans DMT) to obtain their advice. Caltrans DMT provided a written letter in January 2010 stating the criteria for filing under Article 4 versus Article 8, and concluding that the Stanislaus County operators were not eligible under Article 8 because the public agency is the operator. As the operators further contested this finding, StanCOG’s legal counsel provided an interpretation in August 2011 that was not in conflict with DMT's, but clarifying eligibility under Article 8. With these conclusions, the transit operators have been modifying their services and fare policies to maintain compliance with requirements under Article 4.


StanCOG Administration and Planning The uses of TDA revenues apportioned to Stanislaus County flow through a priority process prescribed in state law under PUC 99233.11. A three step apportionment and allocation process is used by StanCOG.

Prior to apportionment of funds for bicycle/pedestrian facilities and the cost sharing procedures, StanCOG is able to claim TDA revenues for administration of the fund and for regional transportation planning and programming purposes. During the audit fiscal years of 2010 through 2012, StanCOG claimed the amounts shown in Table IV-1 below.

Table IV-1 LTF Revenue Claims by StanCOG for

Administration and Planning

Fiscal Year LTF Claim

2009-2010 $576,812

2009-2010 $600,791

2011-2012 $675,046 Source: StanCOG Annual TDA Apportionments

Based on the above table, in FY 2010, the amount claimed by StanCOG for both TDA administration, and planning and programming, equaled approximately 4.0 percent of total Local Transportation Funds apportioned for distribution ($14,305,956). In FY 2011, the amount was 3.8 percent (out of $15,859,708), and for FY 2012, the amount was 3.9 percent (out of $17,168,215). As stipulated in the PUC, StanCOG is limited to no more than 3 percent for planning and programming. The agency remained within these limitations during the audit period. Technical and Managerial Assistance to Operators StanCOG’s public transit planning, monitoring and coordination efforts have improved through the hiring of the current Transit/Programming Manager in October 2009. Assistance is provided as needed, with much decision making regarding the provision of transit left to each respective local jurisdiction. The transit operators meet with the COG for the cost sharing procedures and for SSTAC meetings where transit performance is discussed. TDA Claim Processing TDA claims assistance and processing are handled by the Budgets and Grants Coordinator within the agency’s finance department. On an annual basis during this audit period, StanCOG was responsible for managing the apportionment of between $14.3 and $17.2 million in Local Transportation Fund revenues and about $3 million in State Transit Assistance funds (annual apportionment figures).


Table IV-2 Total TDA Funding Allocation

Fiscal Year Local Transportation Fund

(LTF) State Transit

Assistance (STA) Total

2010 $14,305,956 $0 $14,305,956

2011 $15,859,708 $2,957,281 $18,816,989

2012 $17,168,215 $3,065,754 $20,233,969 Note: No STA was available in FY 2010 due to state budget conditions. Source: StanCOG Annual TDA Apportionments

During the audit period, after allocations to StanCOG for administration and planning, the following allocations were made for eligible uses:

Table IV-3 TDA Funding Allocation for Eligible Uses

(After allocations to StanCOG for administration and planning)

LTF STA

Fiscal Year Bike/Ped Transit Streets/ Roads Transit Total Transit Total Streets/

Roads

2010 $279,672 $12,441,462 $1,008,010 $0 $12,441,462 $1,008,010

2011 $305,178 $10,418,985 $4,534,754 $2,957,281 $13,376,266 $4,534,754

2012 $329,863 $11,547,552 $4,615,754 $3,065,754 $14,613,306 $4,615,754

Source: StanCOG Annual TDA Apportionments

Under the cost sharing procedures, the transit operators received less LTF in FYs 2011 and 2012 with the reinstatement of State Transit Assistance Funds as an offset. Streets and roads funding through LTF increased significantly in FYs 2011 and 2012 as a result of the STA funding for transit. While the growth rates of total LTF were 11 percent and 8 percent in FYs 2011 and 2012, respectively (see Table IV-2), the growth rates of combined LTF and STA allocations to the transit operators grew by 8 percent and 9 percent, respectively. StanCOG prepares and distributes several documents during the TDA claims process. The documents include the initial and final estimates of apportionment to each jurisdiction and a packet providing claimants with the necessary forms and funding information needed to prepare TDA claims. Initial revenue projections are provided by the County in January. The TDA claims are generally adopted by each jurisdiction in the spring and StanCOG approval in late summer. The claims are prepared by the cities and County, and are adopted by each claimant’s governing board or council. StanCOG requires that claim amendments be taken before the claimants’ respective Board (Board of Supervisors for the County and City Council for


the incorporated cities) as part of the public process. There was a delay in the approval of Modesto’s TDA claim for FY 2011-12 with subsequent revisions to the claim. As a general rule, operator claims must include supplemental information of a number of TDA requirements, including attachment of specific documentation such as the operations and capital budget, prior year revenues and expenditures, and CHP terminal inspection certification. A standard assurances form, which is not included in the claim, provides a listing of all requirements that the operator must be in compliance to receive the funds. The purpose of the standard assurances form allows each operator to certify that all conformance requirements are satisfied to receive both LTF and STA funds. Examples are the timely conduct of the annual state controller and fiscal audits, and full use of available federal funding. The attachment of CHP compliance certificates to the claim is another example of a standard assurance that the RTPA should require. The purpose of the list is to hold the operators accountable for compliance with certain TDA provisions to be able to receive the funds and as an annual reminder. The COG could also use the form to makes its findings prior to approval by the Board. A sample assurance form is contained in the back of this audit. Unmet Transit Needs Unmet transit needs hearings are required by the TDA where claims can be made for streets and roads. StanCOG conducts the annual unmet transit needs process for Stanislaus County to allow the rural and urban transit operators to plan for future services. The Unmet Transit Needs hearings are held in the board room at StanCOG’s offices in Modesto. StanCOG prepares the Unmet Transit Needs Identification and Analysis Report, which is reviewed by the advisory and standing committees before adoption by the Policy Board. A letter of Notice of Determination and Findings is submitted to Caltrans along with the Unmet Transit Needs documentation. Recommended findings by the SSTAC are included in the staff report. Each year, StanCOG reaffirms the adopted definition of unmet transit needs and reasonable to meet. TDA regulations require StanCOG to adopt definitions of “Unmet Transit Need” and “Reasonable to Meet” to guide staff analysis to discern whether an identified need as been unmet and is reasonable to meet. During the audit period, StanCOG adopted new criteria for determining an “Unmet Transit Need” and which transit needs are “Reasonable to Meet.” In September 2009, pursuant to Resolution 09-23, the Policy Board adopted revised Unmet Transit Need and Reasonable to Meet definitions. In summary, StanCOG’s “Unmet Transit Need” definition “is a need for transportation for an individual or group of individuals within any part of Stanislaus County, which has not been funded and implemented and which has been accurately documented on the Unmet Transit Need ‘Request for Transit Service’ form.” The definition goes on to describe the various transit


modes involved including “specialized services” as well as the populations most dependent upon transit services. The definition concludes that “unmet transit needs” are not:

1. Trips, which would duplicate transportation services; and

2. A need for transportation service beyond the fiscal year under consideration.

The “Reasonable to Meet” definition is applicable based upon five performance and financial criteria:

1. Any new service developed to meet an unmet transit need shall achieve at least 50 percent of the system-wide performance standards, as found in the Transit Cost Sharing Procedures adopted by the StanCOG Policy Board, except in the case of an extension of service determined to be a necessary lifeline service1 for transit dependent populations.

2. Any new service developed to meet an unmet transit need shall not cause the system of which it is a part to fail to meet the systemwide performance standards.

3. Any new service developed to meet an unmet transit need will not require the expenditure of more Local Transportation Funds (LTF) than are available to the jurisdiction for transit.

4. Any new specialized service would be required to meet TDA requirements and be eligible for LTF funding under Article 4 “Claims for Funds”, Article 4.5 “Claims for Community Transit Services”, and Article 8 “Other Claims for Funds.”

5. An unmet transit need that requires specialized service will not reduce the amount of TDA funding needed by a City or County to continue to provide public transit services unless determined otherwise by the StanCOG Policy Board as demonstrated by their approval of claims submitted under Article 4.5 “Claims for Community Transit Services” of the Transportation Development Act (TDA).

The determination of whether an unmet transit need is “reasonable to meet” shall take into account as appropriate:

1. If the time period needed to implement the required corrective action (e.g. major purchases, planning requirement) is greater than one year, an unmet transit need may be declared not reasonable to meet. An unmet transit need shall not be determined unreasonable to meet more than once on these grounds.

2. The fact that an identified transit need cannot be fully met based on available resources shall not be the sole reason for a finding that a transit need is not reasonable to meet.

1 Lifeline Service: A service necessary to access community services within Stanislaus County that are needed to sustain an individual’s physical and mental health, as determined by StanCOG Policy Board.


3. StanCOG’s Policy Board determination of needs that are reasonable to meet shall not be made by comparing unmet transit needs with the need for streets and roads.

The FY 2009-10 Unmet Transit Needs determination found that the Stanislaus County Transit Need Assessment Recommendations and Implementation Plan was an unmet transit need that was reasonable to meet. For FY 2010-11, StanCOG determined that there were no unmet transit needs that were reasonable to meet. Two unmet transit needs were identified for FY 2011-12, but were not reasonable to meet based on the adopted definitions. The unmet transit needs process is promoted extensively to ensure ample participation and comment from the public. Notices of Public Hearing are publicized in local daily and weekly newspapers such as the Modesto Bee and Vida en el Valle (Spanish). Flyers and placards printed in English and Spanish are distributed throughout the county including transit operators. A Spanish language interpreter is also provided upon request. Unmet Transit Needs hearings are typically held as part of the Policy Board and SSTAC meetings.

Public Information and External Affairs

StanCOG utilizes a myriad of tools and approaches in its overall public information and engagement strategy. There is a greater emphasis on electronic media than on print publications and collateral. StanCOG’s principal electronic portal continues to be its Web site (http://www.stancog.org). The StanCOG Web site contains an extensive array of information and documentation. The home page provides an overview of StanCOG’s roles and responsible as well as the latest developments, employment and contracting opportunities and documentation. The Web Site menus are located above the mast and on the left-hand margin. The left-hand margin links include access to monthly and annual calendars, transportation planning and funding documentation, public transportation providers, bicycle and pedestrian issues, public involvement and meeting agendas. StanCOG produces and publishes a quarterly e-newsletter, “On the Move” that is sent directly to a subscriber’s email address or downloaded from the Web site. The newsletter contains items of regional significance, highlights member agency projects and provides information on upcoming public meetings, events and activities around Stanislaus County. There is also a link for the public to subscribe online. During the audit period, StanCOG released the Annual Report for FY 2010-2011. The 12-page Annual Report provides an overview of StanCOG activities for the fiscal year including the Executive Director’s Report, Policy Board roster, major work products and finances, completed projects, regional planning and a roster of advisory committees and staff. There were no other annual reports released during the period. Bilingual public information brochures provide general information about StanCOG and the Commute Connection rideshare program. The tri-

http://www.stancog.org/


fold StanCOG brochure provides an overview of the agency including member agencies, Policy Board members, advisory committees and staff. The Commute Connection brochures contains an application for the rideshare database. Public notices and press releases are distributed to local print media outlets for publication as well as posted on the Web site. Notices and releases are published in the Modesto Bee, Hughson Chronicle, Patterson Irrigator, Waterford News, Westside Index and for Spanish-language notices, Vida en el Valle. With regard to social media and networking sites, such as Facebook and Twitter, StanCOG has yet to make inroads into this marketing arena. Social media are both time-sensitive and labor-intensive, which may require frequent monitoring and updating. Current staffing levels may not permit such an effort; however, the staff member responsible for updating the StanCOG Web Site could be encouraged to explore social media as an outreach tool. StanCOG’s Public Participation Plan (PPP), adopted in September 2011, is intended to provide direction for public participation activities to be conducted by StanCOG and contains the procedures, strategies, and techniques used by the COG for public participation. Federal transportation enabling legislation stipulates that the public access and involvement in the development of the long-range transportation plans (RTP) and capital programs (FTIP/STIP), as well as the development of other planning studies. Therefore, MPOs are required to develop a participation plan that details the methods by which the MPO will provide reasonable opportunities for the public to comment on its two core planning documents and all other efforts. The StanCOG PPP is organized into five sections: Introduction, Planning Process; Goals and Procedures; Public Involvement Evaluation and Appendix.

As part of its external affairs outreach, StanCOG participates in several collaborative efforts with other RTPAs in the San Joaquin Valley. The most extensive of these efforts has been the San Joaquin Valley Blueprint Planning Process. Another collaborative effort has been the San Joaquin Valley Regional Council. The Regional Council has allowed StanCOG and other participating MPOs/RTPAs in the region to speak with one voice to elected officials in Sacramento and Washington D.C. This group furthers the collective strength of the partner agencies to advocate for transportation funding and address other issues of concern to the Valley.

Grant Applications and Management

StanCOG serves as the clearinghouse for federal grant applications that are reviewed to determine whether there is any duplication of effort among agencies and that there is no conflict with local plans and policies. The COG’s role for the Stanislaus County region is to review and be an integral part to state and federal funding assistance that promote inter-jurisdictional coordination. Pursuant to federal law, StanCOG is required to publish for public review an annual listing of projects for which federal funds have been obligated in the


preceding year as a record of project delivery, as well as a progress report for public information and disclosure. StanCOG assists the transit operators with obtaining federal grants from the FTA by ensuring the programming of resources and projects in the appropriate federal implementation plans. Federal grants have played an important role in funding continued operations and capital replacement of the transit operators. FTA Section 5307 urbanized funds have been used for MAX and Turlock operations. FTA Section 5311 rural transit funds have been procured for transit operating assistance for StaRT. StanCOG also assists with administering other federal transit grant programs including FTA Section 5310 (Elderly and Disabled Specialized Transit Program), 5316 (Jobs Access and Reverse Commute) and 5317 (New Freedom). Congestion Mitigation and Air Quality (CMAQ) program funds have been received and programmed for Compressed Natural Gas (CNG) powered transit vehicles and fueling facilities, traffic signal light synchronization and transit fare subsidies. Funding from the federal American Recovery and Reinvestment Act of 2009 (ARRA) has been tapped by StanCOG to expedite the delivery of projects already programmed, obligated or pending certification. To date, almost $21 million in ARRA funding has been awarded toward transportation projects in Stanislaus County.


Section V

Findings and Recommendations The following material summarizes the major findings obtained from the Triennial Audit covering FY’s 2010 through 2012. A set of recommendations is then provided.

Findings

1. StanCOG has complied with State legislative mandates for Regional Transportation Planning

Agencies.

2. Of the three prior performance audit recommendations, StanCOG has fully implemented one recommendation and partially implemented two recommendations related to developing a comprehensive set of policies and procedures guiding staff activity, and taking action on a classification and compensation report. The new Executive Director has been making effort on these issues.

3. StanCOG underwent significant changes in its administrative staffing including the

appointment of an interim Executive Director in May 2012, with full time appointment in January 2013.

4. A notable accomplishment has been the 2011 Regional Transportation Plan (RTP) Update

which was adopted in July 2010. Although the 2011 RTP did not have the opportunity to fully comply with Senate Bill 375 (SB 375) as the greenhouse gas (GHG) emission targets were not yet established, it did set the foundation for the 2014 RTP by introducing Sustainable Communities Strategy (SCS) principles.

5. As the designated RTPA, StanCOG is responsible for the administration of the TDA program.

Revisions to the transit cost sharing procedures were made by the Management and Finance Committee and approved by the StanCOG Policy Board in April 2012. The transit cost sharing percentages to each transit system will be revisited in three years.

6. On an annual basis during this audit period, StanCOG was responsible for managing the

apportionment of between $14.3 and $17.2 million in Local Transportation Fund revenues and about $3 million in State Transit Assistance funds (annual apportionment figures).

7. StanCOG adopted new criteria for determining an “Unmet Transit Need” and what transit

needs are “Reasonable to Meet.” In September 2009, pursuant to Resolution 09-23, the Policy Board adopted revised Unmet Transit Need and Reasonable to Meet definitions.

8. StanCOG’s Public Participation Plan (PPP), adopted in September 2011, is intended to

provide direction for public participation activities to be conducted by StanCOG and


contains the procedures, strategies, and techniques used by the COG for public participation.

9. The unmet transit needs process is promoted extensively to ensure ample participation and

comment from the public. Notices of Public Hearing are publicized in local daily and weekly newspapers. Flyers and placards printed in English and Spanish are distributed throughout the county including transit operators and the Stanislaus Intermodal Center.

Recommendations

1. Develop and implement a checklist of standard assurances for TDA transit claims.

The purpose of the standard assurances form allows each operator to certify that all conformance requirements are satisfied to receive both LTF and STA funds. These standard assurances are typically listed in a checklist format in the TDA claims and should be reviewed and signed off by the transit claimant prior to submittal of the claim. StanCOG, in turn, would verify compliance for each applicable measure prior to approving the claim for funding. Examples are the timely conduct of the annual state controller and fiscal audits, submittal of CHP compliance certificates, and full use of available federal funding. The appendix to this audit shows a sample Standard Assurances list that could be included as part of the forms submitted by the transit claimants. This list, which would be signed and initialized by the appropriate claimant and used as a checklist by StanCOG, serves as an annual reminder of specific TDA compliance measures.

2. Review transit farebox ratio requirements consistent with county Census population growth.

The 2010 US Census shows that Stanislaus County’ population is close to 515,000, up from 447,000 from the last census. In regard to farebox recovery ratios, the urban farebox recovery ratio is 20 percent per the statute. The urban farebox ratios in the county are currently 15 percent as allowed under PUC Section 99268.12 which is applicable to county populations under 500,000 and serving an urbanized area. With the change in population between the census exceeding the 500,000 threshold, the urban farebox recovery ratios should be reviewed and adjusted to be in compliance with the statute. With an adjustment to the farebox ratio, StanCOG should consider granting time for the affected operators to meet the new ratio. As guidance, the TDA statute (PUC Section 99270.2) allows operators in urbanized areas up to five years to meet the new ratio.


Appendix A

Sample TDA Claim Standard Assurances


SAMPLE STANDARD ASSURANCES FOR APPLICANTS TRANSPORTATION DEVELOPMENT ACT (TDA) FUNDS

Local Transportation Funds and State Transit Assistance Funds

Claimant

Fiscal Year 2012 (Project Year)

Please initial all applicable paragraphs pursuant to which the attached claim is being submitted.

Initials

1. 180-DAY CERTIFIED FISCAL AUDIT - Claimant certifies that it has

submitted a satisfactory, independent fiscal audit, with required certification statement, to the COG and State Controller, pursuant to PUC 99245 and CCR 6664 for the prior fiscal year (project year minus two). Claimant assures that this audit requirement will be completed for the current fiscal year (project year minus one).

2. 90-DAY ANNUAL REPORT - Claimant certifies that it has submitted a

State Controller's report in conformance with the uniform system of accounts and reports to the COG and State Controller, pursuant to PUC 99243.5, for the prior year (project year minus two). Claimant assures that this report will be completed for the current fiscal year (project year minus one).

3. REVENUE RATIOS FOR OPERATORS - Claimant filing a claim

pursuant to PUC 99268.2, 99268.3, 99268.4, or 99270.1 certifies that it will maintain for the project year a ratio of fare revenues to operating costs of: a) 20% if the claimant is serving an urbanized area; b) 10% if the claimant is serving a non-urbanized area, or an intermediate ratio established by the COG.

4. REVENUE RATIOS FOR EXCLUSIVE SERVICES TO ELDERLY AND

HANDICAPPED - Claimants filing a claim pursuant to PUC 99268.5

certifies that, for the purposes of that claim, it provides services using vehicles for the exclusive use of elderly and handicapped persons and that it will maintain for the project year a ratio of fare revenues to operating costs of 10%.

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5. EXTENSION OF SERVICE - Claimant that received an allocation of LTF funds for an extension of service pursuant to PUC 99268.8 certifies that it will file a report of these services pursuant to PUC 6633.8b within 90 days after the close of the fiscal year in which that allocation was granted.

6. RETIREMENT SYSTEM - Claimant filing a claim pursuant to PUC 99260

certifies that: a) the current cost of its retirement system is. fully funded with respect to the officers and employees of its public transportation system; or, b) the operator is implementing a plan Approved by the transportation planning agency which will fully fund the retirement system for such officers and employees within 40 years; or, c) the operator has a private pension plan which sets aside and invests, on a current basis, funds sufficient to provide for the payment of future pension benefits and which is fully in compliance with the requirements stated in PUC 99272 and PUC 99273.

7. USE OF FEDERAL FUNDS - Claimant filing a claim for TDA funds for

capital intensive projects pursuant to PUC 99268.7 certifies that it has made every effort to obtain federal funding for any project which is funded pursuant to PUC 99268.7.

8. CALIFORNIA HIGHWAY PATROL (CHP) CERTIFICATION - Claimant

certifies compliance with Driver Pull Notice Requirements of PUC 99251 and Vehicle Code 1808.1 (attach copy of CHP certification).

9. ANNUAL FISCAL AUDIT - Claimant agrees to follow the annual fiscal

audit process established by the Council of Governments. 10. TRIENNIAL PERFORMANCE AUDIT - Claimant agrees to make a

reasonable effort to address all issues and recommendations made in the last Triennial Performance Audit.

11. PRODUCTIVITY IMPROVEMENT PROGRAM - Claimant agrees to make

a reasonable effort to implement the productivity improvements recommended pursuant to Public Utilities Code Section 99244.

12. CONFORMANCE WITH REGIONAL TRANSPORTATION PLAN -

Claimant certifies that all of the purposes for claim expenditures are in conformance with the Regional Transportation Plan.

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13. STATE TRANSIT ASSISTANCE FOR OPERATION - Claimant agrees that it is not precluded by any contract from employing part-time drivers or contracting with common carriers or persons operating under a franchise or license.

(Legal Name of Applicant/Claimant)

(Authorizing Signature)

(Print Name and Title)

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Documents

StanCOG TDA Performance AuditTriennial Performance Audit i Stanislaus Council of Governments Executive Summary PMC was retained by the Stanislaus Council of Governments (StanCOG) to