Regular Meeting No. 2021-8A September 16, 2021 2:00 p.m.
AGENDA
Regular Board of Directors Meeting Teleconference Meeting
Please join the meeting from your computer, tablet or smartphone. https://us02web.zoom.us/j/86703536278?pwd=dHp4TGhlQTlFNmhaV2wvVnB0Sm8ydz09
Meeting ID: 86703536278; Passcode: 677859
You can also dial in using your phone: (669) 900-6833 Meeting ID: 86703536278; Passcode: 677859
SPECIAL NOTICE REGARDING COVID-19
On March 4, 2020, Governor Newsom proclaimed a State of Emergency in California as a result of the threat of COVID-19. Public gatherings are to be limited.
On March 18, 2020, Governor Newsom temporarily suspended the Brown Act requirements pertaining to telephonic conferencing of local government meetings and the requirement to have at least one physical location available to the public for purposes of attending the meeting. Further, on June 11, 2021, Governor Newsom extended the temporary suspension of the Brown Act requirements through September 30, 2021. As such, RTA has opted to conduct the September 16, 2021 meeting via teleconference. Participants can participate via teleconference in each participant’s own office / home area which will not be made physically accessible to the public.
Members of the public wishing to participate via teleconference can do so by joining the meeting from your computer, tablet or smart phone at 2:00 p.m. on September 16, 2021: https://us02web.zoom.us/j/86703536278?pwd=dHp4TGhlQTlFNmhaV2wvVnB0Sm8ydz09 Meeting ID 86703536278; Passcode 677859; or you may dial in using your phone to (669) 900-6833; Meeting ID 86703536278; Passcode 677859.
RTA BOARD OF DIRECTORS MEETING PAGE 2 SEPTEMBER 16, 2021
Those that do not wish to speak can view the meeting at www.youtube.com/RiversideTransit. Those wishing to speak during the meeting must submit comments and/or questions in writing for Board consideration by completing the online Speaker Request Form which can be accessed through our website at RiversideTransit.com or by clicking HERE. Please submit your written comments by Wednesday, September 15, 2021, at 5:00 p.m. Once you dial in, you must ensure that you are in a quiet environment with no background noise (traffic, children, pets, etc.) You must mute your phone until called upon by the Chair or the Clerk to speak. Once called upon, please unmute your device and speak. You will be warned prior to your allotted time being over.
Any person with a disability who requires a modification or accommodation in order to participate in this meeting, or any person with limited English proficiency (LEP) who requires language assistance to communicate with the Riverside Transit Agency Board of Directors during the meeting, should contact the Riverside Transit Agency Clerk of the Board, telephone number (951) 565-5066, no fewer than two business days prior to this meeting to enable the Riverside Transit Agency to make reasonable arrangements to assure accessibility or language assistance for this meeting.
Agenda item descriptions are intended to provide members of the public a general summary of business to be conducted or discussed. Posting of any recommended action on an agenda item does not indicate what action will be taken. The Board of Directors may take any action it believes is appropriate on the agenda item and is not limited in any way by the notice of any recommendation.
All documents related to any agenda item are available for public inspection at www.riversidetransit.com or through the Clerk of the Board’s office at the Riverside Transit Agency, 1825 Third Street, Riverside, CA 92507.
ITEM RECOMMENDATION
1. CALL TO ORDER
2. ROLL CALL
3. PLEDGE OF ALLEGIANCE
RTA BOARD OF DIRECTORS MEETING PAGE 3 SEPTEMBER 16, 2021
ITEM RECOMMENDATION
4. PUBLIC COMMENTS – NON-AGENDA ITEMS RECEIVE COMMENTS
Members of the public may address the Board regarding any item within the subject matter jurisdiction of the Board; however, no action may be taken on off-agenda items unless authorized by law. Comments shall be limited to matters not listed on the agenda. Members of the public may comment on any matter listed on the agenda at the time that the Board considers that matter. Each person's presentation is limited to a maximum of three (3) minutes.
5. APPROVAL OF MINUTES – JULY 22, 2021 BOARD MEETING (P.7) APPROVE
6. CONSENT CALENDAR: All items on the Consent Calendar will be approved by one motion and there will be no discussion on individual items unless a Board member or member of the public requests a specific item to be pulled from the calendar for separate discussion.
6A. Financial Profile – July and August 2021 (P.12) RECEIVE AND FILE
6B. Ridership Report – July and August 2021 (P.37) RECEIVE AND FILE
6C. On Time Performance – July and August 2021 (P.51) RECEIVE AND FILE
6D. Board Administration and Operations Committee Meeting – September 1, 2021 Draft Minutes (P.52) RECEIVE AND FILE
6E. Board Budget and Finance Committee Meeting – September 1, 2021 Draft Minutes (P.56) RECEIVE AND FILE
6F. August FY22 Farebox Recovery Ratio (FRR) Performance and FY22 FRR Projection (P.59) RECEIVE AND FILE
6G. Transportation NOW Update – July and August 2021 (P.61) RECEIVE AND FILE
RTA BOARD OF DIRECTORS MEETING PAGE 4 SEPTEMBER 16, 2021
ITEM RECOMMENDATION
6. CONSENT CALENDAR (Continued)
6H. Agency Credit Card Statement – July and August 2021 (P.64) RECEIVE AND FILE
6I. Annual Report for Public Agencies Self-Insured for Workers’ Compensation Benefits and Actuarial Study Results for Workers’ Compensation Program (P.68) ACCEPT (Board Administration and Operations Committee Reviewed and Recommended – 9/1/21)
6J. Actuarial Study Results for Liability Insurance Program (P.119) ACCEPT (Board Administration and Operations Committee Reviewed and Recommended – 9/1/21)
6K. Approve Resolutions Authorizing Filing of Grant Applications with the Federal Transit Administration (FTA) and California Department of Transportation (Caltrans) for Federal Fiscal Year 2021-2022 (FFY22) (P.168) APPROVE (Board Administration and Operations Committee Reviewed and Recommended – 9/1/21)
6L. Authorization to Award Agreement No. 21-022 to Intercare Holdings for Workers’ Compensation Claims Administration and Managed Care Services (P.176) APPROVE (Board Budget and Finance Committee Reviewed and Recommended – 9/1/21)
6M. Approve a Disadvantaged Business Enterprise (DBE) Participation Goal of 2.1% for Federal Fiscal Years 2022-2024 as Required Under Federal Transit Administration (FTA) Guidelines per Code of Federal Regulations, Title 49, Part 26 (P.179) APPROVE (Board Administration and Operations Committee Reviewed and Recommended – 9/1/21)
RTA BOARD OF DIRECTORS MEETING PAGE 5 SEPTEMBER 16, 2021
ITEM RECOMMENDATION
6. CONSENT CALENDAR (Continued)
6N. Authorization to Award Agreement No. 21-043 to ND Construction Co., Inc. for Transit Enhancements to Seven Bus Stop Locations (P.193) APPROVE (Board Budget and Finance Committee Reviewed and Recommended – 9/1/21)
REGULAR CALENDAR:
7. AUTHORIZATION TO CANCEL THE AWARD OF AGREEMENT NO. 21-007 TO GENFARE FOR THE DEVELOPMENT AND IMPLEMENTATION OF THE AGENCY’S MOBILE TICKETING APPLICATION (APP) (P.197) APPROVE
8. AUTHORIZATION TO CANCEL THE AWARD OF AGREEMENT NO. 21-003 TO SEON SYSTEMS SALES, INC. (DBA SAFE FLEET) AND AUTHORIZE AWARD OF AGREEMENT NO. 21-003 TO LUMINATOR TECHNOLOGY GROUP (LUMINATOR) TO INSTALL AND CONFIGURE REPLACEMENT NETWORK VIDEO RECORDERS (NVRS) ON 145 GILLIG BUSES (P.199) APPROVE
9. APPROVE THE VINE STREET MOBILITY HUB FINAL DESIGN AND AUTHORIZE THE PROCUREMENT OF CONSTRUCTION SERVICES (P.202) APPROVE (Board Administration and Operations Committee Reviewed and Recommended – 9/1/21)
10. BOARD MEMBER COMMENTS
11. ANNOUNCEMENTS
12. NEXT MEETING Thursday, October 28, 2021 2:00 p.m. Riverside County Administration Center Board Chambers 4080 Lemon St., First Floor Riverside, CA 92501 RTA BOARD OF DIRECTORS MEETING PAGE 6 SEPTEMBER 16, 2021
ITEM RECOMMENDATION
13. CLOSED SESSION: A CLOSED SESSION WILL BE HELD PURSUANT TO GOVERNMENT CODE SECTION 54957.6 TO DISCUSS THE COLLECTIVE BARGAINING AGREEMENT NEGOTIATIONS WITH THE AMALGAMATED TRANSIT UNION, LOCAL 1277. THE DESIGNATED REPRESENTATIVE FOR THE RIVERSIDE TRANSIT AGENCY IS LARRY RUBIO, AND THE DESIGNATED REPRESENTATIVE FOR THE AMALGAMATED TRANSIT UNION, LOCAL 1277 IS ARTURO AGUILAR.
14. MEETING ADJOURNMENT RIVERSIDE TRANSIT AGENCY Board of Directors Minutes of Meeting No. 2021-7A Regular Meeting July 22, 2021
1. CALL TO ORDER Chair Linda Krupa called the regular meeting of the Riverside Transit Agency Board of Directors to order at 2:01 p.m., on Thursday, July 22, 2021 via teleconference.
2. ROLL CALL Present: 1. Rey SJ Santos, City of Beaumont 2. Linda Molina, City of Calimesa 3. Jim Steiner, City of Corona 4. Jocelyn Yow, City of Eastvale 5. Linda Krupa, City of Hemet 6. Timothy J. Sheridan, City of Lake Elsinore 7. Dean Deines, City of Menifee 8. David Marquez, City of Moreno Valley 9. Scott, Vinton, City of Murrieta 10. Ted Hoffman, City of Norco 11. Malcolm Corona, City of Perris 12. Alonso Ledezma, City of San Jacinto 13. Zak Schwank, City of Temecula 14. Bridgette Moore, City of Wildomar 15. 1Jerry Sincich, County of Riverside, District I 16. Karen Spiegel, County of Riverside, District II 17. 2Andrea Mares, County of Riverside District III 18. 3Art Welch, County of Riverside District V
Absent: 1. Alberto Sanchez, City of Banning 2. Jeremy Smith, City of Canyon Lake 3. Brian Berkson, City of Jurupa Valley 4. City of Riverside
3. PLEDGE OF ALLEGIANCE
Chair Linda Krupa led the pledge of allegiance.
Director Karen Spiegel joined the meeting at 2:05 p.m.
1Alternate for Kevin Jeffries, County of Riverside, District I 2Alternate for Chuck Washington, County of Riverside, District III 3Alternate for Jeff Hewitt, County of Riverside, District V
Item 5 7 4. PUBLIC COMMENTS – NON-AGENDA ITEMS A public comment was received from Keith White, Eastvale resident and read by staff.
5. LEGISLATIVE UPDATE – DAVID TURCH, OF DAVID TURCH & ASSOCIATES
A presentation was given by David Turch, of David Turch & Associates. A comment was made by Chair Linda Krupa. The legislative update was received.
6. APPROVAL OF MINUTES – JUNE 24, 2021 BOARD MEETING
M/S/C (SPIEGEL/LEDEZMA) approving the minutes of the June 24, 2021 Board meeting.
The motion carried unanimously.
7. CONSENT CALENDAR
M/S/C (LEDEZMA/SANTOS) approving the receipt and file of Item A – Financial Profile – June 2021. The motion carried unanimously.
M/S/C (LEDEZMA/SANTOS) approving the receipt and file of Item B – Ridership Report – June 2021. The motion carried unanimously. M/S/C (LEDEZMA/SANTOS) approving the receipt and file of Item C – On Time Performance – June 2021. The motion carried unanimously.
M/S/C (LEDEZMA/SANTOS) approving the receipt and file of Item D – Board Administration and Operations Committee Meeting – July 7, 2021 Draft Minutes. The motion carried unanimously.
M/S/C (LEDEZMA/SANTOS) approving the receipt and file of Item E – Board Budget and Finance Committee Meeting – July 7, 2021 Draft Minutes. The motion carried unanimously.
M/S/C (LEDEZMA/SANTOS) approving the receipt and file of Item F – FY21 Farebox Recovery Ratio (FRR) Performance. The motion carried unanimously.
M/S/C (LEDEZMA/SANTOS) approving the receipt and file of Item G – Transportation NOW Update – June 2021. The motion carried unanimously.
M/S/C (LEDEZMA/SANTOS) approving the receipt and file of Item H – Agency Credit Card Statement – June 2021. The motion carried unanimously.
M/S/C (LEDEZMA/SANTOS) approving the receipt and file of Item I - Quarterly Comprehensive Route Performance Report. The motion carried unanimously.
M/S/C (LEDEZMA/SANTOS) approving Item J - Authorization to Renew Revenue Agreement No. 21-017 with the City of Temecula for Reimbursement of Fare Revenue for Route 55. The motion carried unanimously.
Item 5 8 M/S/C (LEDEZMA/SANTOS) approving Item K – Authorization to Award Agreement No. 21-028 to Specialty Flooring, Inc. for the Application of Epoxy Floor Coatings at the Riverside and Hemet Maintenance Facilities. The motion carried unanimously.
REGULAR CALENDAR:
8. AUTHORIZATION TO AWARD AGREEMENT NO. 21-007 TO GENFARE FOR THE DEVELOPMENT AND IMPLEMENTATION OF THE AGENCY’S MOBILE TICKETING APPLICATION (APP)
Board member comments were made by Chair Linda Krupa, Directors Scott Vinton, David Marquez and Jerry Sincich. A public comment was received from Keith White, Eastvale resident.
M/S/C (WELCH/SINCICH) as to the following: • Authorize staff to award Agreement No. 21-007 to Genfare for the development and implementation of the Agency’s mobile ticketing app for a total not-to-exceed amount of $823,882 for a five-year period.
The motion carried unanimously.
9. AUTHORIZATION TO AWARD AGREEMENT NO. 21-003 TO SEON SYSTEMS SALES, INC. (DBA SAFEFLEET) TO INSTALL AND CONFIGURE REPLACEMENT NETWORK VIDEO RECORDERS (NVR) ON 145 GILLIG BUSES
M/S/C (LEDEZMA/MOLINA) as to the following: • Authorize staff to award Agreement No. 21-003 to Seon Systems Sales, Inc. (dba Safe Fleet) to install and configure replacement network video recorders on 145 Gillig buses in the amount of $571,333.25 with a five-percent contingency of $28,566.66 for a total project budgeted amount of $599,899.91. The motion carried unanimously.
10. FISCAL YEAR (FY) 2020 LOW CARBON TRANSIT OPERATIONS PROGRAM (LCTOP) FREE FARES FOR YOUTH AND COLLEGE STUDENTS PROGRAM – QUARTERLY UPDATE Quarterly update was received and filed.
11. BUS STOP STRATEGIC POLICY PROGRAM UPDATE Kristin Warsinski, Director of Planning, made a presentation. Board Member comments were made by Directors Ted Hoffmann and Jerry Sincich. Bus Stop Strategic Policy Program update received and filed.
12. BOARD MEMBER COMMENTS Board member comments were made by Second Vice Chair Linda Molina, Immediate Past Chair Bridgette Moore and Directors Ted Hoffman and Andrea Mares.
Item 5 9 13. ANNOUNCEMENTS
Announcements were made by Larry Rubio.
14. NEXT MEETING
Regular Meeting of the RTA Board of Directors Thursday, September 23, 2021, 2:00 p.m. Riverside County Administration Center Board Chambers 4080 Lemon Street, First Floor Riverside, CA 92501
The meeting went into closed session at 3:03 p.m.
15. CLOSED SESSION: A CLOSED SESSION WILL BE HELD PURSUANT TO GOVERNMENT CODE SECTION 54957(A) – THREAT TO PUBLIC SERVICES OR FACILITIES – CONSULTATION WITH CHIEF TECHNOLOGY OFFICER, RICK KACZEROWSKI.
16. CLOSED SESSION: A CLOSED SESSION WILL BE HELD PURSUANT TO GOVERNMENT CODE SECTION 54957.6 TO DISCUSS THE COLLECTIVE BARGAINING AGREEMENT NEGOTIATIONS WITH THE AMALGATED TRANSIT UNION, LOCAL 1277. THE DESIGNATED REPRESENTATIVE FOR THE RIVERSIDE TRANSIT AGENCY IS LARRY RUBIO, AND THE DESIGNATED REPRESENTATIVE FOR THE AMALGATED TRANSIT UNION, LOCAL 1277 IS ARTURO AGUILAR.
The meeting returned to open session at 3:35 p.m. Agency General Counsel Barbara Raileanu stated with respect to Items 15 and 16, no reportable actions were taken.
17. MEETING ADJOURNMENT
The meeting was adjourned at 3:36 p.m.
Respectfully submitted,
Larry Rubio Chief Executive Officer
Joan Hepworth Clerk of the Board of Directors
Item 5 10 ADDITIONAL PARTICIPANTS – JULY 22, 2021
NAME ORGANIZATION/TITLE
1. LARRY RUBIO RTA, CHIEF EXECUTIVE OFFICER 2. BARBARA RAILEANU RTA, AGENCY GENERAL COUNSEL 3. JOAN HEPWORTH RTA, CLERK OF THE BOARD 4. TOM FRANKLIN RTA, CHIEF OPERATING OFFICER 5. CHARLIE RAMIREZ RTA, CHIEF FINANCIAL OFFICER 6. LAURA CAMACHO RTA, CHIEF ADMINISTRATIVE SERVICES OFFICER 7. NATALIE ZARAGOZA RTA, CHIEF PROCUREMENT AND LOGISTICS OFFICER 8. JIM KNEEPKENS RTA, CHIEF MARKETING OFFICER 9. RICK KACZEROWSKI RTA, CHIEF TECHNOLOGY OFFICER 10. KRISTIN WARSINSKI RTA, DIRECTOR OF PLANNING 11. ALBERT JIMENEZ RTA, DIRECTOR OF RISK MANAGEMENT 12. ROBERT FERNANDEZ RTA, DIRECTOR OF MAINTENANCE 13. MELISSA BLANKENSHIP RTA, DIRECTOR OF CONTRACTS 14. STEPHANIE SIRLS RTA, DIRECTOR OF OPERATIONS 15. BRAD WEAVER RTA, MEDIA & PUBLIC RELATIONS MANAGER 16. AUDREY GILL RTA, CONTRACT OPERATIONS MANAGER 17. MARK PALMER RTA, OPERATIONS MANAGER 18. YESENIA FELIX RTA, ADMINISTRATIVE ASSISTANT 19. JENNIFER NGUYEN RTA, GRANTS MANAGER 20. MAURICIO ALVAREZ RTA, PLANNING ANALYST 21. DAVID TURCH DAVID TURCH & ASSOCIATES 22. KEVIN BOSCH DAVID TURCH & ASSOCIATES 23. MAURO VARELA ATU 1277, TREASURER 24. ERIC DEHATE RIVERSIDE COUNTY TRANSPORTATION COMMISSION 25. ERIC LEWIS MORENO VALLEY RESIDENT 26. KEITH WHITE EASTVALE RESIDENT 27. GLENN LEIDER CARLSBAD RESIDENT 28. JORINE CAMPBELL DID NOT STATE 29. JAMEEL LOFTON DID NOT STATE 30. DANIEL GOREY DID NOT STATE 31. KYLE GERSTNER DID NOT STATE 32. ELIZABETH CASTANON DID NOT STATE 33. WEI SUN DID NOT STATE
Item 5 11 RIVERSIDE TRANSIT AGENCY 1825 Third Street Riverside, CA 92507
September 16, 2021
TO: BOARD OF DIRECTORS
THRU: Larry Rubio, Chief Executive Officer
FROM: Charlie Ramirez, Chief Financial Officer
SUBJECT: Financial Profile – July and August 2021
Summary: The attached reports summarize the Agency’s performance for July and August 2021 in the areas of revenues, operating expenses, ridership, and service levels (in terms of revenue service hours and revenue service miles). These reports reflect the first two months of FY22.
Recommendation:
Receive and file
Item 6A 12
FINANCIAL PROFILE
July 2021
Overview
For this report, monthly and year-to-date values and variances are identical as July is the first month of the fiscal year.
July total revenue is $14,828,156.
July operating revenue of $14,704,716 is $169,111 or 1 percent over budget. The variance is attributable to greater than anticipated farebox and CNG- related revenue. July farebox revenue of $384,117 is $96,836 or 34 percent over budget. The variance is attributed to greater than anticipated pass sales.
July capital contributions revenue is $123,440. Capital contributions revenue recognition usually represents activity on approved prior-year capital projects. Thus, measurement against budget at any time in the current fiscal year is not indicative – positive or negative – of the financial performance on these projects as compared to operating revenues which are confined to the current fiscal year. In the final month of the current fiscal year, the entire current fiscal year’s approved capital budget will be depicted.
July operating expenses of $6,256,040 are $126,840 or 2 percent under budget. Variance analysis by cost element is provided in the financial discussion below.
During the month of July, RTA carried a total of 259,978 passengers. July ridership consisted of 209,219 passengers on directly operated fixed routes, 40,769 on contracted fixed routes, and 9,990 Dial-A-Ride trips. July 2021 ridership reflects a system-wide decrease of 8 percent when compared to July 2020, however, keep in mind the ridership for both months was affected by the COVID-19 pandemic. Compared to pre-pandemic ridership in July 2019, July 2021 ridership is down 60 percent.
Item 6A 13 During July, RTA provided a total of 40,199 revenue service hours and logged a total of 621,020 combined revenue miles. This reflects a decrease of 10 percent for both hours and miles when comparing July 2021 to July 2020.
Financial Discussion
Salaries and benefits expense of $3,302,083 is $66,875 or 2 percent under budget in July. The variance is attributed to unfilled positions.
Purchased transportation expenses of $1,728,089 are $14,580 or 1 percent under budget in July. The variance is attributed to contractual efficiencies.
Total services expenses of $324,660 are $14,420 or 4 percent under budget in July. The variance is attributed to less than anticipated contract services and security expenses.
Materials and supplies expenses of $344,046 are $12,570 or 4 percent under budget in July. The variance is attributed to less than anticipated inventory parts expense.
Other expenses of $557,163 are $18,394 or 3 percent under budget in July. The variance is attributed to less than anticipated utilities, marketing, and software expenses.
Item 6A 14 Item 6A 15 Item 6A 16 Item 6A 17 RIVERSIDE TRANSIT AGENCY REVENUE GRAPHS July 2021
Passenger Fares Local Operating
384,117 400,000 10,308,221 10,308,221 12,000,000 287,282 320,000 10,000,000
240,000 8,000,000 Actual Budget Actual Budget
State Operating Federal Operating
43,575 43,000 3,793,419 3,788,769 50,000 4,000,000
35,000 3,500,000
20,000 3,000,000 Actual Budget Actual Budget
Item 6A 18 RIVERSIDE TRANSIT AGENCY REVENUE GRAPHS July 2021
Other Operating
200,000 175,384
150,000
108,333
100,000 Actual Budget
Item 6A 19 RIVERSIDE TRANSIT AGENCY REVENUE GRAPHS July 2021
Ridership
283,704 259,978 300,000
200,000
100,000 July 2020 July 2021
Item 6A 20 Item 6A 21 RIVERSIDE TRANSIT AGENCY EXPENSE GRAPHS July 2021
Salaries & Benefits Purchased Transportation
1,728,089 1,742,669 4,000,000 3,368,958 2,000,000 3,302,083 3,500,000 1,500,000 3,000,000
2,500,000 1,000,000 Actual Budget Actual Budget
Services Materials & Supplies
339,080 356,616 400,000 324,660 450,000 344,046
300,000 300,000
200,000 150,000 Actual Budget Actual Budget
Item 6A 22 RIVERSIDE TRANSIT AGENCY EXPENSE GRAPHS July 2021
Other Expenses
575,557 557,163 600,000
500,000
400,000 Actual Budget
Item 6A 23 Item 6A 24
FINANCIAL PROFILE
August 2021
Overview
August total revenue is $5,298,591. Year-to-date revenue is $20,126,747.
August operating revenue of $4,872,999 is $249,432 or 5 percent over budget. Year-to-date operating revenue of $19,577,714 is $418,543 or 2 percent over budget. Both the monthly and year-to-date variances are attributed to greater than anticipated farebox and CNG related revenue. August farebox revenue of $412,775 is $113,642 or 38 percent over budget. The year-to-date farebox revenue of $796,892 is $210,478 or 36 percent over budget. Both the monthly and year-to-date variances are attributed to greater than anticipated ridership.
August capital contributions revenue is $425,592. Year-to-date capital contributions revenue is $549,033. Capital contributions revenue recognition usually represents activity on approved prior-year capital projects. Thus, measurement against budget at any time in the current fiscal year is not indicative – positive or negative – of the financial performance on these projects as compared to operating revenues which are confined to the current fiscal year. In the final month of the current fiscal year, the entire current fiscal year’s approved capital budget will be depicted.
August operating expenses of $6,127,495 are $179,811 or 3 percent under budget. Year-to-date expenses of $12,383,535 are $306,651 or 2 percent under budget. Variance analysis by cost element is provided in the financial discussion below.
During the month of August, RTA carried a total of 295,004 passengers. August ridership consisted of 235,304 passengers on directly operated fixed routes, 48,104 on contracted fixed routes, and 11,596 Dial-A-Ride trips. August 2021 ridership reflects a system-wide increase of 6 percent when compared to August 2020, however, keep in mind the ridership for both months was affected by the COVID-19 pandemic. Compared to pre- pandemic ridership in August 2019, August 2021 ridership is down 59 percent.
Item 6A 25 During August, RTA provided a total of 45,019 revenue service hours and logged a total of 681,389 combined revenue miles. This reflects a 4 percent decrease in hours and a 5 percent decrease in miles, respectively, when comparing August 2021 to August 2020. FY22 year-to-date actual revenue service hours of 85,218 and revenue miles of 1,302,409 reflect a 7 percent decrease in hours and a 7 percent decrease in miles, respectively, when compared to FY21.
Financial Discussion
Salaries and benefits expenses of $3,134,207 are $119,098 or 4 percent under budget in August. Year-to-date salaries and benefits expenses of $6,436,290 are $185,974 or 3 percent under budget. Both the monthly and year-to-date variances are attributed to unfilled positions.
Purchased transportation expenses of $1,803,042 are $29,266 or 2 percent under budget in August. Year-to-date purchased transportation expenses of $3,531,132 are $43,846 or 1 percent under budget. Both the monthly and year-to-date variances are attributed to contractual efficiencies.
Total services expenses of $250,394 are $7,334 or 3 percent under budget in August. Year-to-date service expenses of $575,054 are $21,754 or 4 percent under budget. Both the monthly and year-to-date variances are attributed to less than anticipated contract service expense.
Materials and supplies expenses of $360,227 are $1,247 or less than 1 percent under budget in August. Year-to-date material and supplies expenses of $704,273 are $13,817 or 2 percent under budget. Both the monthly and year-to-date variances are attributed to less than anticipated inventory parts expense.
Other expenses of $579,624 are $22,867 or 4 percent under budget in August. Year-to-date other expenses of $1,136,786 are $41,261 or 4 percent under budget. Both the monthly and year-to-date variances are attributed to less than anticipated advertising expense.
Item 6A 26 RTA Set of Books Date: 09-SEP-21 12:17:17 Revenue Detail Report W/Capital Contribution Page: 1 Current Period: AUG-22
Currency: USD No specific Ledger requested PERIOD TO DATE YEAR TO DATE ACTUAL PCT BUDGET PCT VARIANCE VAR % ACTUAL PCT BUDGET PCT VARIANCE VAR % ______
Passenger Fares 412,774.48 7.8 299,132.15 6.5 113,642.33 38.0 796,891.95 4.0 586,414.04 3.1 210,477.91 35.9
Local Operating Assistance LTF Gen Operating Assist 0.00 0.0 0.00 0.0 0.00 n/m 9,641,554.00 47.9 9,641,554.00 50.3 0.00 0.0 Measure A Operating Assistanc 333,333.33 6.3 333,333.00 7.2 0.33 0.0 999,999.99 5.0 999,999.66 5.2 0.33 0.0
State Operating Assistance LCTOP 95,043.03 2.0 94,000.00 2.0 1,043.03 1.1 138,617.54 0.7 137,000.00 0.7 1,617.54 1.2
Federal Operating Assistance Section 5307 (9) 3,596,209.00 67.9 3,596,209.08 77.8 (0.08) 0.0 7,192,418.00 35.7 7,192,418.16 37.5 (0.16) 0.0 Section 5310 28,400.00 0.6 23,750.00 0.5 4,650.00 19.6 56,800.00 0.3 47,500.00 0.2 9,300.00 19.6 Section 5311 (18) 168,809.58 3.2 168,809.58 3.7 0.00 0.0 337,619.16 1.7 337,619.16 1.8 0.00 0.0
Other Operating Assistance Revenue Lease 5,970.27 0.1 0.00 0.0 5,970.27 n/m 11,940.54 0.1 0.00 0.0 11,940.54 n/m Other Revenue 232,459.12 4.4 108,333.33 2.3 124,125.79 114.6 401,873.23 2.0 216,666.66 1.1 185,206.57 85.5
------Total Operating 4,872,998.81 n/m 4,623,567.14 n/m 249,431.67 5.4 19,577,714.41 n/m 19,159,171.68 n/m 418,542.73 2.2
Capital Contributions Revenue 425,592.21 n/m 0.00 n/m 425,592.21 n/m 549,032.66 n/m 0.00 n/m 549,032.66 n/m ------
Total Revenue 5,298,591.02 100.0 4,623,567.14 100.0 675,023.88 14.6 20,126,747.07 100.0 19,159,171.68 100.0 967,575.39 5.1 ======
Item 6A 27 Item 6A 28 Item 6A 29 RIVERSIDE TRANSIT AGENCY REVENUE GRAPHS August 2021
Passenger Fares Local Operating
412,774 333,333 333,333 450,000 400,000 400,000 299,132 350,000 300,000 300,000 200,000 250,000 100,000 Actual Budget Actual Budget
State Operating Federal Operating
95,043 3,793,419 3,788,769 110,000 94,000 4,000,000 95,000 3,500,000 80,000
65,000 3,000,000 Actual Budget Actual Budget
Item 6A 30 RIVERSIDE TRANSIT AGENCY REVENUE GRAPHS August 2021
Other Operating
238,429 250,000
200,000
150,000 108,333
100,000 Actual Budget
Item 6A 31 RIVERSIDE TRANSIT AGENCY REVENUE GRAPHS August 2021
Ridership
295,004 279,665
300,000
200,000
100,000 August 2020 August 2021
Item 6A 32 RTA Set of Books Date: 09-SEP-21 12:17:17 Operating Expense vs Budget Summary Report Page: 1 Current Period: AUG-22
Currency: USD No specific Ledger requested <------Period to Date ------><------Year to date ------Actual PCT Budget PCT Variance Var% Actual PCT Budget PCT Variance Var% ------Expenses
Salaries Union 1,408,636.09 23.0 1,471,420.71 23.3 62,784.62 4.3 2,757,381.37 22.3 2,859,079.72 22.5 101,698.35 3.6 Salaries Admin 623,293.65 10.2 630,065.49 10.0 6,771.84 1.1 1,213,594.09 9.8 1,222,178.73 9.6 8,584.64 0.7 Total Fringe Ben. 1,102,277.67 18.0 1,151,819.58 18.3 49,541.91 4.3 2,465,314.49 19.9 2,541,005.13 20.0 75,690.64 3.0 ------Total Salaries & Benefit 3,134,207.41 51.1 3,253,305.78 51.6 119,098.37 3.7 6,436,289.95 52.0 6,622,263.58 52.2 185,973.63 2.8
Purchased Transportation 1,803,042.10 29.4 1,832,307.74 29.1 29,265.64 1.6 3,531,131.59 28.5 3,574,976.85 28.2 43,845.26 1.2
Total Services 250,394.47 4.1 257,727.98 4.1 7,333.51 2.8 575,054.08 4.6 596,807.84 4.7 21,753.76 3.6
Fuel & Lube 176,443.03 2.9 155,180.52 2.5 (21,262.51) (13.7) 339,177.88 2.7 319,861.04 2.5 (19,316.84) (6.0) Tires & Tubes 563.07 0.0 1,281.32 0.0 718.25 56.1 936.05 0.0 2,562.64 0.0 1,626.59 63.5 Parts 155,024.08 2.5 173,461.96 2.8 18,437.88 10.6 297,030.81 2.4 319,423.92 2.5 22,393.11 7.0 Supplies 15,740.93 0.3 15,197.00 0.2 (543.93) (3.6) 28,300.43 0.2 30,372.00 0.2 2,071.57 6.8 Other 12,456.12 0.2 16,353.42 0.3 3,897.30 23.8 38,828.11 0.3 45,870.82 0.4 7,042.71 15.4 ------Total Material & Supplie 360,227.23 5.9 361,474.22 5.7 1,246.99 0.3 704,273.28 5.7 718,090.42 5.7 13,817.14 1.9
Utilities 92,744.99 1.5 92,114.64 1.5 (630.35) (0.7) 163,693.96 1.3 165,407.51 1.3 1,713.55 1.0 Insurance 411,699.89 6.7 411,333.47 6.5 (366.42) (0.1) 831,848.06 6.7 832,666.94 6.6 818.88 0.1 Taxes & Permits 3,770.76 0.1 6,094.85 0.1 2,324.09 38.1 6,039.58 0.0 8,937.30 0.1 2,897.72 32.4 Advertising & Promoti 16,883.26 0.3 29,612.51 0.5 12,729.25 43.0 30,898.69 0.2 46,683.35 0.4 15,784.66 33.8 Dues & Subscriptions 11,343.68 0.2 15,041.97 0.2 3,698.29 24.6 17,549.18 0.1 23,573.94 0.2 6,024.76 25.6 Training 6,463.80 0.1 7,408.33 0.1 944.53 12.7 15,572.44 0.1 18,477.46 0.1 2,905.02 15.7 Miscellaneous 36,717.26 0.6 40,884.39 0.6 4,167.13 10.2 71,184.44 0.6 82,300.84 0.6 11,116.40 13.5 ------Total Other Expenses 579,623.64 9.5 602,490.16 9.6 22,866.52 3.8 1,136,786.35 9.2 1,178,047.34 9.3 41,260.99 3.5 ------Total Expenses 6,127,494.85 100.0 6,307,305.88 100.0 179,811.03 2.9 12,383,535.25 100.0 12,690,186.03 100.0 306,650.78 2.4 ------
Net Operating Expenses 6,127,494.85 100.0 6,307,305.88 100.0 179,811.03 2.9 12,383,535.25 100.0 12,690,186.03 100.0 306,650.78 2.4 ======
Item 6A 33 RIVERSIDE TRANSIT AGENCY EXPENSE GRAPHS August 2021
Salaries & Benefits Purchased Transportation
3,253,306 1,803,042 1,832,308 3,500,000 3,134,207 2,000,000
3,000,000 1,500,000
2,500,000 1,000,000 Actual Budget Actual Budget
Services Materials & Supplies
361,474 257,728 360,227 300,000 250,394 450,000
250,000 300,000
200,000 150,000 Actual Budget Actual Budget
Item 6A 34 RIVERSIDE TRANSIT AGENCY EXPENSE GRAPHS August 2021
Other Expenses
602,490 650,000 579,624
550,000
450,000 Actual Budget
Item 6A 35 RTA Set of Books Date: 09-SEP-21 12:17:18 Comparative Balance Sheet Page: 1 Current Period: AUG-22
Currency: USD No specific Ledger requested As of As of AUG-22 AUG-21 ------Assets Cash & Cash Items 63,593,207.25 67,926,664.64 Receivables 536,789.40 508,324.82 Due from Other Governmental agencies 1,188,493.31 5,415,921.10 Interest Receivable 500.01 4,155.00 Materials & Supplies Inventory 891,518.15 943,901.21 Capital Assets 78,758,112.73 81,176,290.89 Other Assets 23,060,669.82 26,281,186.18 ------Total Assets 168,029,290.67 182,256,443.84 ======Liabilities Trade Payables 6,058,598.53 7,157,045.79 Accrued Payroll 475,835.90 673,122.66 Compensated Absences Payable 2,237,553.95 2,262,495.91 Reserve 8,485,707.68 7,316,455.74 Deferred revenue 40,232,224.49 43,474,803.53 Net Pension Liability 165,396.00 3,094,664.00 ------Total Liabilities 57,655,316.55 63,978,587.63
Net Assets Accumulated Earnings/Loss 110,373,974.12 118,277,856.21 ------Total Net Assets 110,373,974.12 118,277,856.21
Total Liabilities & Net Assets 168,029,290.67 182,256,443.84 ======
Item 6A 36 RIVERSIDE TRANSIT AGENCY 1825 Third Street Riverside, CA 92507
September 16, 2021
TO: BOARD OF DIRECTORS
THRU: Larry Rubio, Chief Executive Officer
FROM: Tom Franklin, Chief Operating Officer
SUBJECT: Ridership Report – July and August 2021
Summary: System-wide ridership for July 2021 decreased by -8% versus July 2020, and August 2021 ridership increased by 5% versus August 2020. Ridership Ridership Jul-20 Jul-21 Change Aug-20 Aug-21 Change Fixed Route 276,647 249,988 -10% Fixed Route 272,477 283,408 4% Dial-A-Ride 7,057 9,990 42% Dial-A-Ride 7,188 11,596 61% Total System 283,704 259,978 -8% Total System 279,665 295,004 5%
For context, System-wide ridership for July 2021 decreased -60% versus July 2019, and August 2021 decreased -59% versus August 2019.
Ridership Ridership Jul-19 Jul-21 Change Aug-19 Aug-21 Change Fixed Route 622,542 249,988 -60% Fixed Route 678,914 283,408 -58% Dial-A-Ride 32,233 9,990 -69% Dial-A-Ride 32,804 11,596 -65% Total System 654,775 259,978 -60% Total System 711,718 295,004 -59%
Factors to consider when comparing to a year ago: Major influencing factors • COVID-19 Pandemic: o Sharp decline in ridership began second week of March 2020. o April 5, 2020 - Implemented Sunday service daily with selected weekday peak CommuterLink service. o May 2021 service change, there was a further reduction in service. o Efforts by State and Local Governments have included countywide school closures, stay at home orders, and California’s tiered guidelines for reopening. Riverside County was in the Orange Tier
Item 6B 37 June 2021 before the state lifted restrictions and the county tier system ended June 15th. • Fare Enforcement: o Front door boarding and fare enforcement started on November 2, 2020. • Service Change: th o August 15 service change provided more service and focused on student ridership as students returned to partial in-person learning while 2020 was distance learning.
Minor influencing factors • Calendar: o July 2021 had one less weekday, two more Saturdays, and one less Sunday compared to July 2020. o August 2021 had the one more weekday, one less Saturday and the same number of Sundays compared to August 2020. • Weather: o There were 2 days over 100° in July 2021 versus 7 days in July 2020 and 7 days over 100° in August 2021 versus 13 days in August 2020. o There was one day of significant rain in July 2021 versus zero in July 2020 and no rain in August 2021 or 2020. • Other: o The average gasoline price for July 2021 was $4.29 versus $3.13 in July 2020 and August 2021 was $4.30 versus $3.16 in August 2020.
Recommendation: Receive and file.
Item 6B 38 Riverside Transit Agency Month-End Ridership Summary July 2021 Entire System
1 Total Performance Indicators Monthly & Fiscal Year Variances Passengers/ Passengers/ Fiscal Year-to-date Passengers Jul '21 vs Jul '20 Revenue Hour Revenue Mile 2022 vs. 2021 Fixed Routes** >>> 249,988 7.33 0.49 -9.6% -9.6% Dial-a-Ride (Regular & Lifeline)* >>> 9,990 1.64 0.09 41.6% 41.6% Entire System Total >>> 259,978 6.47 0.42 -8.4% -8.4%
Fixed Routes (Excluding CommuterLinks) >>> 242,064 7.42 0.52 -9.0% -9.0% CommuterLink Routes >>> 7,788 5.24 0.19 -25.8% -25.8% MetroLink Bridges>>> 136 13.42 0.52 369.0% 369.0% Dial-A-Ride (Regular) Total >>> 9,687 1.67 0.09 42.1% 42.1% Lifeline (Overflow) Total >>> 303 1.02 0.07 26.8% 26.8% Entire System >>> 259,978 6.47 0.42 -8.4% -8.4%
1 The FY-To-Date Variance is the difference between ridership from to July 2021 versus July 2020 * The Dial-A-Ride routes serve exclusively seniors and persons with disabilities. ** Fixed route totals include Metrolink Bridges and CommuterLink routes as summarized below
Item 6B 39 Riverside Transit Agency Month-End Ridership Summary July 2021 Fixed Routes (Directly Operated and Contracted)
Performance Indicators Monthly & Fiscal Year Variances 1 Total Route # Area Served DO CO Passengers/ Passengers/ Fiscal Year-to-date Passengers Jul '21 vs Jul '20 Rev. Hour Rev. Mile 2022 vs. 2021
001 Corona/ Downtown Riverside/ Magnolia/ UCR 62,935 62,935 - 14.56 1.17 -4.7% -4.7% 003 Eastvale/ Norco/ Corona 1,882 - 1,882 4.59 0.37 12.1% 12.1% 008 Lake Elsinore 5,339 - 5,339 5.06 0.33 -2.2% -2.2% 009 Perris Station/ Lake Elsinore Outlet 2,030 - 2,030 4.95 0.26 6.2% 6.2% 010 Big Springs & Watkins to Galleria 3,640 3,640 - 5.38 0.45 -0.2% -0.2% 011 Moreno Valley Mall/ March ARB 2,889 2,889 - 5.15 0.44 -13.4% -13.4% 012 La Cadena & Stephens to Merced & Magnolia 9,620 9,620 - 8.28 0.69 -0.4% -0.4% 013 Hunter Park Metrolink/ Galleria at Tyler 6,570 6,570 - 6.86 0.57 -8.0% -8.0% 014 Galleria at Tyler/ Indiana/ VA Hospital 6,577 6,577 - 7.57 0.55 -10.6% -10.6% 015 Downtown Riverside/ Galleria at Tyler 11,106 11,106 - 9.29 0.73 -29.1% -29.1% 016 Downtown Riverside/ Moreno Valley Mall 11,418 11,418 - 6.31 0.53 -14.3% -14.3% 018 Sunnymead Ranch/ Moreno Valley RCC 1,343 1,343 - 3.23 0.24 -55.0% -55.0% 019 Moreno Valley Mall/ Perris 31,817 31,817 - 9.88 0.74 -14.0% -14.0% 020 Magnolia Center/ Moreno Valley RCC 7,669 7,669 - 6.84 0.44 -1.8% -1.8% 021 Country Village/ Galleria at Tyler 2,357 2,357 - 6.78 0.62 -58.3% -58.3% 022 Downtown Riverside/ Perris/ Lake Elsinore 8,596 8,596 - 7.11 0.42 -9.4% -9.4% 023 Temecula/ Murrieta/ Wildomar 3,626 - 3,626 3.78 0.28 38.8% 38.8% 024 Pechanga Resort/ Temecula 2,967 - 2,967 4.05 0.32 1.0% 1.0% 027 Galleria at Tyler/ Perris 6,002 6,002 - 6.41 0.32 -5.8% -5.8% 028 Perris/ Hemet Valley Mall 14,850 14,850 - 8.29 0.48 -16.5% -16.5% 029 Downtown Riverside/ Hamner & Limonite 6,047 6,047 - 7.00 0.47 -3.2% -3.2% 030 Perris 1,191 - 1,191 3.48 0.26 46.1% 46.1%
Item 6B 40 Riverside Transit Agency Month-End Ridership Summary July 2021 Fixed Routes (Directly Operated and Contracted)
Performance Indicators Monthly & Fiscal Year Variances 1 Total Route # Area Served DO CO Passengers/ Passengers/ Fiscal Year-to-date Passengers Jul '21 vs Jul '20 Rev. Hour Rev. Mile 2022 vs. 2021
031 Banning/ Beaumont/ San Jacinto/ Hemet 4,218 - 4,218 2.98 0.15 0.8% 0.8% 032 Hemet/ San Jacinto 3,525 - 3,525 5.11 0.44 12.9% 12.9% 033 Hemet/ East Hemet 762 - 762 2.38 0.19 -10.9% -10.9% ** 040 Lake Elsinore/ Quail Valley/ Sun City 0 - - - - -100.0% -100.0% 041 Mead Valley/ Perris/ Moreno Valley/ RCRMC 1,224 - 1,224 3.37 0.18 45.7% 45.7% 042 San Jacinto/ Soboba Casino/ Hemet 1,921 - 1,921 6.32 0.45 34.7% 34.7% 049 Country Village/ Downtown Riverside 7,859 7,859 - 10.14 0.78 -2.4% -2.4% 050 Downtown Riverside Jury Trolley 85 - 85 0.46 0.07 -28.6% -28.6% * 051 UCR Crest Cruiser 0 ------* 055 Temecula Trolley - Promenade Mall to Harveston 0 ------061 S. Perris Metrolink - Sun City/ Menifee/ Temecula 3,296 - 3,296 3.23 0.19 16.7% 16.7% 074 San Jacinto/ Hemet/ Menifee/ Sun City/ Perris 4,364 - 4,364 3.95 0.23 -0.7% -0.7% 079 Hemet/ Winchester/ French Valley/ Temecula 4,339 - 4,339 4.08 0.25 0.0% 0.0% 200 SB/Riverside/Orange Count 6,395 6,395 - 6.26 0.21 2.2% 2.2% 204 Riverside/ Country Village/ Ontario/ Montclair 635 635 - 2.66 0.12 -58.6% -58.6% 205 Temecula/Riverside/Orange County 156 156 - 2.47 0.08 -85.2% -85.2% 206 Corona/ Lake Elsinore/ Murrieta/ Temecula 602 602 - 3.70 0.14 -25.2% -25.2% ** 208 Temecula/ Murrieta/ Sun City/ Perris/ Mo Val/ Riverside 0 - - - - -100.0% -100.0% 216 Metrolink Bridges & Specials 136 136 - 13.42 0.52 369.0% 369.0% Fixed Route Total >>>> 249,988 209,219 40,769 7.33 0.49 -9.6% -9.6%
1 The FY-To-Date Variance is the difference between ridership from July 2021 versus July 2020 * Service suspended April 6, 2020 under Covid-19 schedule ** Service was discontinued May 8, 2021
Item 6B 41 Riverside Transit Agency Month-End Ridership Summary July 2021 Dial-A-Ride Services
1 Total Performance Indicators Monthly & Fiscal Year Variances Passengers/ Passengers/ Fiscal Year-to-date Passengers Jul '21 vs Jul '20 Revenue Hour Revenue Mile 2022 vs. 2021
801Riverside/San Bernardino 5,578 1.60 0.08 55.3% 55.3%
802Murrieta/Temecula/Menifee 2,861 1.67 0.09 32.5% 32.5% 803Hemet/San Jacinto 1,527 1.73 0.11 19.9% 19.9%
804Rural Areas 24 1.83 0.10 -22.6% -22.6% Dial-A-Ride (Seniors & ADA) Total >>>> 9,990 1.64 0.09 41.6% 41.6%
1 The FY-To-Date Variance is the difference between ridership from to July 2021 versus July 2020
Item 6B 42 Riverside Transit Agency Month-End Ridership Summary July 2021 CommuterLink Routes
1 Total Performance Indicators Monthly & Fiscal Year Variances Route Passengers/ Passengers/ Fiscal Year-to-date Passengers Jul '21 vs Jul '20 Number Area Served Revenue Hour Revenue Mile 2022 vs. 2021 200 SB/Riverside/Orange Count 6,395 6.26 0.21 2.2% 2.2% 204 Riverside/ Country Village/ Ontario/ Montclair 635 2.66 0.12 -58.6% -58.6% 205 Temecula/Riverside/Orange County 156 2.47 0.08 -85.2% -85.2% 206 Corona/ Lake Elsinore/ Murrieta/ Temecula 602 3.70 0.14 -25.2% -25.2%
* 208 Temecula/ Murrieta/ Sun City/ Perris/ Moreno Valley/ Riverside 0 - - -100.0% -100.0% Total CommuterLink Routes >>> 7,788 5.24 0.19 -25.8% -25.8%
1 The FY-To-Date Variance is the difference between ridership from to July 2021 versus July 2020 * Service was discontinued May 8, 2021 on Route 208
Item 6B 43 Riverside Transit Agency Month-End Ridership Summary July 2021
Selected Pass Programs
Monthly & Fiscal Year Variances 1 Total Passengers Fiscal Year-to-date Jul '21 vs Jul '20 Pass Program 2022 vs. 2021 RCC GO-PASS 1,782 1410.2% 1410.2% UC-RIVERSIDE U-PASS 2,534 4681.1% 4681.1% MT. SAN JACINTO COLLEGE GO-PASS 323 -3.9% -3.9% CAL BAPTIST UNIVERSITY U-PASS 250 12400.0% 12400.0% LA SIERRA UNIVERSITY U-PASS 0 -100.0% -100.0% Token Transit Manual Bypass 637 - - U-PASS & GO-PASS COLLEGE PROGRAMS TOTAL 5,526 902.9% 902.9%
1 The FY-To-Date Variance is the difference between ridership from to July 2021 versus July 2020
Item 6B 44 Riverside Transit Agency Month-End Ridership Summary August 2021 Entire System
1 Total Performance Indicators Monthly & Fiscal Year Variances Passengers/ Passengers/ Fiscal Year-to-date Passengers Aug '21 vs Aug '20 Revenue Hour Revenue Mile 2022 vs. 2021 Fixed Routes** >>> 283,408 7.39 0.51 4.0% -2.9% Dial-a-Ride (Regular & Lifeline)* >>> 11,596 1.74 0.09 61.3% 51.5% Entire System Total >>> 295,004 6.55 0.43 5.5% -1.5%
Fixed Routes (Excluding CommuterLinks) >>> 275,161 7.49 0.54 4.8% -2.1% CommuterLink Routes >>> 8,247 5.15 0.19 -17.5% -21.8% MetroLink Bridges>>> 0 0.00 0.00 -100.0% 216.3% Dial-A-Ride (Regular) Total >>> 11,248 1.77 0.09 62.9% 52.6% Lifeline (Overflow) Total >>> 348 1.12 0.07 22.5% 24.5% Entire System >>> 295,004 6.55 0.43 5.5% -1.5%
1 The FY-To-Date Variance is the difference between ridership from July 2021 to August 2021 versus July 2020 to August 2020 * The Dial-A-Ride routes serve exclusively seniors and persons with disabilities. ** Fixed route totals include Metrolink Bridges and CommuterLink routes as summarized below
Item 6B 45 Riverside Transit Agency Month-End Ridership Summary August 2021 Fixed Routes (Directly Operated and Contracted)
Performance Indicators Monthly & Fiscal Year Variances 1 Total Route # Area Served DO CO Passengers/ Passengers/ Fiscal Year-to-date Passengers Aug '21 vs Aug '20 Rev. Hour Rev. Mile 2022 vs. 2021
001 Corona/ Downtown Riverside/ Magnolia/ UCR 69,581 69,581 - 13.70 1.14 5.2% 0.2% 003 Eastvale/ Norco/ Corona 2,837 - 2,837 4.44 0.38 68.1% 40.2% 008 Lake Elsinore 6,365 - 6,365 5.62 0.36 19.3% 8.4% 009 Perris Station/ Lake Elsinore Outlet 2,159 - 2,159 5.10 0.26 2.9% 4.4% 010 Big Springs & Watkins to Galleria 4,273 4,273 - 5.91 0.51 18.6% 9.2% 011 Moreno Valley Mall/ March ARB 3,151 3,151 - 5.02 0.45 8.5% -3.2% 012 La Cadena & Stephens to Merced & Magnolia 10,428 10,428 - 8.47 0.71 8.2% 3.9% 013 Hunter Park Metrolink/ Galleria at Tyler 7,169 7,169 - 6.58 0.58 -2.1% -5.0% 014 Galleria at Tyler/ Indiana/ VA Hospital 7,160 7,160 - 7.86 0.58 -0.7% -5.7% 015 Downtown Riverside/ Galleria at Tyler 14,086 14,086 - 9.10 0.75 -9.1% -19.1% 016 Downtown Riverside/ Moreno Valley Mall 12,179 12,179 - 5.83 0.51 -8.2% -11.2% 018 Sunnymead Ranch/ Moreno Valley RCC 2,310 2,310 - 5.06 0.38 -11.3% -34.7% 019 Moreno Valley Mall/ Perris 34,996 34,996 - 9.37 0.73 -3.0% -8.6% 020 Magnolia Center/ Moreno Valley RCC 8,462 8,462 - 7.04 0.46 12.5% 5.2% 021 Country Village/ Galleria at Tyler 2,328 2,328 - 6.23 0.58 -59.0% -58.7% 022 Downtown Riverside/ Perris/ Lake Elsinore 11,277 11,277 - 7.92 0.50 15.9% 3.4% 023 Temecula/ Murrieta/ Wildomar 3,937 - 3,937 3.95 0.29 46.6% 42.8% 024 Pechanga Resort/ Temecula 3,158 - 3,158 4.05 0.33 9.8% 5.3% 027 Galleria at Tyler/ Perris 6,775 6,775 - 6.62 0.35 8.8% 1.4% 028 Perris/ Hemet Valley Mall 17,009 17,009 - 8.18 0.48 0.1% -8.4% 029 Downtown Riverside/ Hamner & Limonite 6,642 6,642 - 7.19 0.50 6.5% 1.6% 030 Perris 1,520 - 1,520 4.20 0.32 61.7% 54.5%
Item 6B 46 Riverside Transit Agency Month-End Ridership Summary August 2021 Fixed Routes (Directly Operated and Contracted)
Performance Indicators Monthly & Fiscal Year Variances 1 Total Route # Area Served DO CO Passengers/ Passengers/ Fiscal Year-to-date Passengers Aug '21 vs Aug '20 Rev. Hour Rev. Mile 2022 vs. 2021
031 Banning/ Beaumont/ San Jacinto/ Hemet 4,907 - 4,907 3.34 0.17 27.1% 13.4% 032 Hemet/ San Jacinto 3,767 - 3,767 4.89 0.45 21.1% 17.0% 033 Hemet/ East Hemet 1,142 - 1,142 3.07 0.24 53.7% 19.1% ** 040 Lake Elsinore/ Quail Valley/ Sun City 0 - - - - -100.0% -100.0% 041 Mead Valley/ Perris/ Moreno Valley/ RCRMC 2,008 - 2,008 5.19 0.29 128.7% 88.1% 042 San Jacinto/ Soboba Casino/ Hemet 1,762 - 1,762 5.49 0.40 13.8% 23.8% 049 Country Village/ Downtown Riverside 9,231 9,231 - 11.25 0.91 11.0% 4.4% 050 Downtown Riverside Jury Trolley 133 - 133 0.64 0.10 129.3% 23.2% * 051 UCR Crest Cruiser 0 ------* 055 Temecula Trolley - Promenade Mall to Harveston 591 - 591 12.05 0.98 - - 061 S. Perris Metrolink - Sun City/ Menifee/ Temecula 3,897 - 3,897 3.42 0.19 48.2% 31.9% 074 San Jacinto/ Hemet/ Menifee/ Sun City/ Perris 4,926 - 4,926 4.20 0.24 18.4% 8.6% 079 Hemet/ Winchester/ French Valley/ Temecula 4,995 - 4,995 4.24 0.26 24.2% 11.7% 200 SB/Riverside/Orange Count 6,813 6,813 - 5.98 0.21 13.2% 7.6% 204 Riverside/ Country Village/ Ontario/ Montclair 661 661 - 2.79 0.13 -52.3% -55.6% 205 Temecula/Riverside/Orange County 182 182 - 2.89 0.10 -82.6% -83.9% 206 Corona/ Lake Elsinore/ Murrieta/ Temecula 591 591 - 3.63 0.14 -23.9% -24.6% ** 208 Temecula/ Murrieta/ Sun City/ Perris/ Mo Val/ Riverside 0 - - - - -100.0% -100.0% 216 Metrolink Bridges & Specials 0 - - 0.00 0.00 -100.0% 216.3% Fixed Route Total >>>> 283,408 235,304 48,104 7.39 0.51 4.0% -2.9%
1 The FY-To-Date Variance is the difference between ridership from July 2021 to August 2021 versus July 2020 to August 2020 * Service suspended April 6, 2020 under Covid-19 schedule ** Service was discontinued May 8, 2021
Item 6B 47 Riverside Transit Agency Month-End Ridership Summary August 2021 Dial-A-Ride Services
1 Total Performance Indicators Monthly & Fiscal Year Variances Passengers/ Passengers/ Fiscal Year-to-date Passengers Aug '21 vs Aug '20 Revenue Hour Revenue Mile 2022 vs. 2021
801Riverside/San Bernardino 6,849 1.71 0.09 80.9% 68.4%
802Murrieta/Temecula/Menifee 3,090 1.74 0.09 38.9% 35.7%
803Hemet/San Jacinto 1,634 1.84 0.11 43.2% 30.9%
804Rural Areas 23 1.87 0.08 -37.8% -30.9% Dial-A-Ride (Seniors & ADA) Total >>>> 11,596 1.74 0.09 61.3% 51.5%
1 The FY-To-Date Variance is the difference between ridership from July 2021 to August 2021 versus July 2020 to August 2020
Item 6B 48 Riverside Transit Agency Month-End Ridership Summary August 2021 CommuterLink Routes
1 Total Performance Indicators Monthly & Fiscal Year Variances Route Passengers/ Passengers/ Fiscal Year-to-date Passengers Aug '21 vs Aug '20 Number Area Served Revenue Hour Revenue Mile 2022 vs. 2021 200 SB/Riverside/Orange Count 6,813 5.98 0.21 13.2% 7.6% 204 Riverside/ Country Village/ Ontario/ Montclair 661 2.79 0.13 -52.3% -55.6% 205 Temecula/Riverside/Orange County 182 2.89 0.10 -82.6% -83.9% 206 Corona/ Lake Elsinore/ Murrieta/ Temecula 591 3.63 0.14 -23.9% -24.6%
* 208 Temecula/ Murrieta/ Sun City/ Perris/ Moreno Valley/ Riverside 0 - - -100.0% -100.0% Total CommuterLink Routes >>> 8,247 5.15 0.19 -17.5% -21.8%
1 The FY-To-Date Variance is the difference between ridership from July 2021 to August 2021 versus July 2020 to August 2020
* Service was discontinued May 8, 2021 on Route 208
Item 6B 49 Riverside Transit Agency Month-End Ridership Summary August 2021
Selected Pass Programs
Monthly & Fiscal Year Variances 1 Total Passengers Fiscal Year-to-date Aug '21 vs Aug '20 Pass Program 2022 vs. 2021 RCC GO-PASS 4,548 3148.6% 2353.5% UC-RIVERSIDE U-PASS 3,202 4540.6% 4976.1% MT. SAN JACINTO COLLEGE GO-PASS 869 212.6% 94.1% CAL BAPTIST UNIVERSITY U-PASS 184 - 21600.0% LA SIERRA UNIVERSITY U-PASS 0 -100.0% -100.0% Token Transit Manual Bypass 891 - - U-PASS & GO-PASS COLLEGE PROGRAMS TOTAL 9,694 1701.9% 1297.6%
1 The FY-To-Date Variance is the difference between ridership from July 2021 to August 2021 versus July 2020 to August 2020
Item 6B 50 RIVERSIDE TRANSIT AGENCY 1825 Third Street Riverside, CA 92507
September 16, 2021
TO: BOARD OF DIRECTORS
THRU: Larry Rubio, Chief Executive Officer
FROM: Tom Franklin, Chief Operating Officer
SUBJECT: On Time Performance for July and August 2021
Summary: On time performance system-wide was 89% in July 2021 and 86% in August 2021. Last year, on time performance system-wide was 93% in July and 93% in August.
The COVID-19 related “stay at home” order in the state of California was issued by the Governor to start March 19, 2020. As a result of the “stay at home” order traffic was drastically reduced. On April 6, 2021 Riverside County graduated to the orange (moderate) tier before the state lifted restrictions and the county tier system ended June 15th. As a result, the traffic in western Riverside County increased dramatically as compared to the previous year and this was the main factor for the decrease in OTP when comparing 2021 versus 2020.
In August 2021, schools started with partial in-person learning. Contracted Operations and Dial-a-Ride faced staffing shortages. Finally, DAR Ridership increased by approximately 17% from July to August. All these factors impacted the August 2021 decline in OTP as compared to August 2020.
Recommendation:
Receive and file.
Item 6C 51 RTA BOARD ADMINISTRATION AND OPERATIONS COMMITTEE MEETING Minutes September 1, 2021
1. CALL TO ORDER
Committee Chair Alonso Ledezma called the Board Administration and Operations Committee meeting to order at 1:06 p.m., on September 1, 2021 via teleconference.
2. SELF-INTRODUCTIONS
In lieu of self-introductions, a roll call was taken.
Committee Members Attending
1. Alonso Ledezma, City of San Jacinto 2. Jim Steiner, City of Corona 3. Brian Berkson, City of Jurupa Valley 4. David Marquez, City of Moreno Valley 5. Scott Vinton, City of Murrieta 6. Steve Hemenway, City of Riverside 7. Zak Schwank, City of Temecula 8. 1Jerry Sincich, County of Riverside, District I 9. Karen Spiegel, County of Riverside, District II
RTA Staff
1. Larry Rubio, Chief Executive Officer 2. Joan Hepworth, Clerk of the Board 3. Tom Franklin, Chief Operating Officer 4. Charlie Ramirez, Chief Financial Officer 5. Laura Camacho, Chief Administrative Services Officer 6. Natalie Zaragoza, Chief Procurement and Logistics Officer 7. Rick Kaczerowski, Chief Technology Officer 8. Jim Kneepkens, Chief Marketing Officer 9. Kristin Warsinski, Director of Planning 10. Robert Fernandez, Director of Maintenance 11. Albert Jimenez, Director of Risk Management 12. Melissa Blankenship, Director of Contracts 13. Stephanie Sirls, Director of Operations 14. Jennifer Nguyen, Grants Manager 15. Bradley Weaver, Media and Public Relations Manager 16. Jose Ibarra, Customer Information Supervisor 17. Yesenia Felix, Administrative Assistant
1Alternate for Kevin Jeffries, County of Riverside, District I
Item 6D 52 Other Attendees
1. Keith White, Eastvale Resident 2. Kimberly Wender, Psomas 3. Matthew Wilkins, KTUA 4. Michael Singleton, KTUA 5. Wei Sun, Did not state
3. PUBLIC COMMENTS – NON-AGENDA ITEMS
A public comment was received from Keith White, Eastvale resident, which was read by staff.
4. APPROVAL OF MINUTES – JULY 7, 2021 COMMITTEE MEETING
M/S/C (SINCICH/VINTON) approving the minutes of the July 7, 2021 Committee meeting.
The motion carried unanimously.
5. CONSENT CALENDAR
No committee members or members of the public had comments or requested an item from the consent calendar to be pulled for discussion. Item 5A – Personnel Report – June & July 2021; and Item 5B – Transportation Center Monthly Report – June & July 2021 were both received and filed.
6. ANNUAL REPORT FOR PUBLIC AGENCIES SELF-INSURED FOR WORKERS’ COMPENSATION BENEFITS AND ACTUARIAL STUDY RESULTS FOR WORKERS’ COMPENSATION PROGRAM
Director Karen Spiegel had a question which was answered by staff.
M/S/C (LEDEZMA/STEINER) approving and recommending this item to the full Board of Directors for their consideration as follows:
• Accept the Actuarial Study Results for the Workers’ Compensation Program and recommend this item to the full Board of Directors for their consideration.
The motion carried unanimously.
7. ACTUARIAL STUDY RESULTS FOR LIABILITY INSURANCE PROGRAM
M/S/C (STEINER/VINTON) approving and recommending this item to the full Board of Directors for their consideration as follows:
Item 6D 53 • Accept the Actuarial Study Results for the Liability Insurance Program and recommend this item to the full Board of Directors for their consideration.
The motion carried unanimously.
8. APPROVE A DISADVANTAGED BUSINESS ENTERPRISE (DBE) PARTICIPATION GOAL OF 2.1% FOR FEDERAL FISCAL YEARS 2022-2024 AS REQUIRED UNDER FEDERAL TRANSIT ADMINISTRATION (FTA) GUIDELINES PER CODE OF FEDERAL REGULATIONS, TITLE 49, PART 26 M/S/C (MARQUEZ/SPIEGEL) approving and recommending this item to the full Board of Directors for their consideration as follows:
• Approve a 2.1% DBE participation goal for federal fiscal years 2022-2024.
The motion carried unanimously.
9. APPROVE RESOLUTIONS AUTHORIZING FILING OF GRANT APPLICATIONS WITH THE FEDERAL TRANSIT ADMINISTRATION (FTA) AND CALIFORNIA DEPARTMENT OF TRANSPORTATION (CALTRANS) FOR FEDERAL FISCAL YEAR 2021-2022 (FFY22)
M/S/C (SCHWANK/SINCICH) approving and recommending this item to the full Board of Directors for their consideration as follows:
• Authorize the Board Chair to execute Resolution No. 2021-05 and Resolution No. 2021-06. • Authorize staff to submit related grant applications using the attached Resolution as required by Caltrans and FTA. • Authorize the Chief Executive Officer or assigned designee to file and execute related applications with Caltrans and FTA.
The motion carried unanimously.
10. APPROVE THE VINE STREET MOBILITY HUB FINAL DESIGN AND AUTHORIZE THE PROCUREMENT OF CONSTRUCTION SERVICES
A presentation was given by Kristin Warsinski, Director of Planning and Kimberly Wender, Psomas Project Manager. Director Spiegel had a question which was answered by staff. A public comment was made by Keith White, Eastvale Resident.
M/S/C (VINTON/HEMENWAY) approving and recommending this item to the full Board of Directors for their consideration as follows:
• Approve the Vine Street Mobility Hub Final Design. • Authorize staff to release the Invitation for Bids (IFB) for construction of the facility.
The motion carried unanimously.
Item 6D 54
11. BOARD MEMBER COMMENTS
Board member comments were made by Committee Chair Alonso Ledezma, and Directors Brian Berkson and Karen Spiegel.
12. ANNOUNCEMENTS
Larry Rubio made announcements.
13. NEXT MEETING
Wednesday, October 6, 2021
14. MEETING ADJOURMENT
The meeting was adjourned at 1:53 p.m.
Item 6D 55 RTA BOARD BUDGET AND FINANCE COMMITTEE MEETING Minutes September 1, 2021
1. CALL TO ORDER
Committee Chair Jeremy Smith called the Board Budget and Finance Committee meeting to order at 2:00 p.m., on September 1, 2021 via teleconference.
2. SELF INTRODUCTIONS
In lieu of self-introductions, a roll call was taken.
Committee Members Attending
1. Jeremy Smith, City of Canyon Lake 2. Rey SJ Santos, City of Beaumont 3. Linda Molina, City of Calimesa 4. Linda Krupa, City of Hemet 5. Timothy J. Sheridan, City of Lake Elsinore 6. Ted Hoffman, City of Norco 7. Bridgette Moore, City of Wildomar 8. 1Andrea Mares, County of Riverside District III 9. 2Art Welch, County of Riverside District V
RTA Staff 1. Larry Rubio, Chief Executive Officer 2. Joan Hepworth, Clerk of the Board 3. Tom Franklin, Chief Operating Officer 4. Charlie Ramirez, Chief Financial Officer 5. Laura Camacho, Chief Administrative Services Officer 6. Natalie Zaragoza, Chief Procurement and Logistics Officer 7. Rick Kaczerowski, Chief Technology Officer 8. Jim Kneepkens, Chief Marketing Officer 9. Kristin Warsinski, Director of Planning 10. Robert Fernandez, Director of Maintenance 11. Albert Jimenez, Director of Risk Management 12. Melissa Blankenship, Director of Contracts 13. Stephanie Sirls, Director of Operations 14. Jennifer Nguyen, Grants Manager 15. Bradley Weaver, Media and Public Relations Manager 16. Jose Ibarra, Customer Information Supervisor 17. Yesenia Felix, Administrative Assistant
1Alternate for Chuck Washington, County of Riverside, District III 2Alternate for Jeff Hewitt, County of Riverside, District V
Item 6E 56 Other Attendees 1. Keith White, Eastvale Resident 2. Rick Gougeon, Did Not State 3. Ana, Did Not State
3. PUBLIC COMMENTS – NON-AGENDA ITEMS
A public comment was received from Keith White, Eastvale resident, which was read by staff.
4. APPROVAL OF MINUTES – JULY 7, 2021 COMMITTEE MEETING
M/S/C (WELCH/MOLINA) approving the July 7, 2021 committee meeting minutes.
The motion carried unanimously.
5. CASH FLOW PROJECTIONS
Charlie Ramirez presented the cash flow projections which were received and filed.
6. QUARTERLY INVESTMENT REPORT
Charlie Ramirez presented the Quarterly Investment Report. Board Chair Linda Krupa had a question which was answered by staff. Item was received and filed.
7. QUARTERLY NATURAL GAS PROCUREMENT STATUS REPORT
Charlie Ramirez presented the Quarterly Natural Gas Procurement Status Report. Director Ted Hoffman had a question which was answered by staff. Item was received and filed.
8. QUARTERLY CAPITAL STATUS
Charlie Ramirez presented the Quarterly Capital Status. A public comment was made by Keith White, Eastvale resident. Item was received and filed.
9. AUTHORIZATION TO AWARD AGREEMENT NO. 21-043 TO ND CONSTRUCTION CO., INC. FOR TRANSIT ENHANCEMENTS TO SEVEN BUS STOP LOCATIONS
Board Chair Linda Krupa and Director Ted Hoffman had questions which were answered by staff.
M/S/C (MOLINA/SANTOS) approving and recommending this item to the full Board of Directors for their consideration as follows:
Item 6E 57 • Authorize staff to award Agreement No. 21-043 to ND Construction Co., Inc. for transit enhancements to seven bus stop locations in the amount of $110,386.50 with a ten-percent contingency of $11,038.65 for a total project budget amount of $121,425.15.
The motion carried unanimously.
10. AUTHORIZATION TO AWARD AGREEMENT NO. 21-022 TO INTERCARE HOLDINGS FOR WORKERS’ COMPENSATION CLAIMS ADMINISTRATION AND MANAGED CARE SERVICES
Board Chair Linda Krupa and Second Vice Chair Linda Molina had questions which were answered by staff.
M/S/C (MOORE/HOFFMAN) approving and recommending this item to the full Board of Directors for their consideration as follows:
• Authorize staff to award Agreement No. 21-022 to Intercare Holdings Insurance Services, Inc. for workers’ compensation claims administration and managed care services for a two-year base period with three one-year options, totaling five years, in an amount not-to-exceed $849,439.08.
The motion carried with eight affirmative votes and one abstention (MOLINA).
11. BOARD MEMBER COMMENTS
Board member comments were made by Board Chair Linda Krupa, Second Vice Chair Linda Molina, Immediate Past Chair Bridgette Moore, Committee Chair Jeremy Smith and Directors Rey SJ Santos, Timothy J. Sheridan, Andrea Mares, and Art Welch.
12. ANNOUNCEMENTS
Larry Rubio made announcements.
13. NEXT MEETING
Wednesday, October 6, 2021, 2:00 p.m.
14. MEETING ADJOURNMENT
The meeting was adjourned at 2:38 p.m.
Item 6E 58 RIVERSIDE TRANSIT AGENCY 1825 Third Street Riverside, CA 92507
September 16, 2021
TO: BOARD OF DIRECTORS
THRU: Larry Rubio, Chief Executive Officer
FROM: Charlie Ramirez, Chief Financial Officer
SUBJECT: August FY22 Farebox Recovery Ratio (FRR) Performance and FY22 FRR Projection
Summary: The Agency relies on a Transportation Development Act (TDA) funding subsidy in order to cover a significant portion of its annual operating expenses. This funding is predicated on compliance with TDA operating provisions and statutes. TDA provisions state that claimants shall meet or exceed a predetermined ratio of fare revenues to operating expenses. This is known as the Farebox Recovery Ratio (FRR).
Policies and legislation have been adopted that clarify and expand the definition of allowable parameters relative to the calculation of the FRR. A Farebox Recovery Policy adopted by the Riverside County Transportation Commission (RCTC) expands allowable passenger fare revenues to include Local funds and Local Support revenues.
In July 2021, Governor Newsom signed State Assembly Bill 149 (AB149). AB149 temporarily protects transit agencies against the financial penalties associated with not making its FRR target through fiscal year 2023. AB149 also includes several permanent changes to the FRR calculation. Many of these changes are beneficial to transit agencies and allow for the exclusion of certain costs as well as the inclusion of additional non-fare revenue in the FRR calculation. The Agency is currently awaiting additional guidance from RCTC on how they will officially interpret the language in AB149. Therefore, a conservative approach has been taken and the numbers presented below do not yet incorporate the provisions of AB149.
Item 6F 59 The Agency’s FRR Target for FY22 is 16.89%. The Agency’s FY22 budgeted FRR is 13.19%. The Agency’s actual FRR through August is 18.97%, exceeding the target by 2.08%. The Agency is currently exceeding its FRR target due to the timing of certain revenue. However, due to COVID-19, the Agency does not expect to meet or exceed the FRR target in FY22. Further, there is no violation of TDA to miss this metric due to the impact of the pandemic.
The table below reflects the Agency’s current FY22 year-end forecast for FRR. It is based on year-to-date actual revenues and expenses through August 2021 plus projections for the remainder of the fiscal year.
Farebox Revenues $ 3,600,000 Local Support Revenues: Measure A $ 4,000,000 Subtotal - Farebox Revenues 7,600,000
Other Revenues AB149 Revenue Inclusions - Interest Income on Investments 75,000 LCTOP used for operating 2,400,000 CNG Related Revenue 1,500,000 Other Local Support Revenues 150,000 Subtotal - Other Revenue 4,125,000
Total Farebox & Other Revenues $ 11,725,000
Operating Expenses (Excl. Depreciation & Amortization) $ 85,687,886
AB149 Expense Exemptions $ -
Operating Expenses - Adjusted $ 85,687,886
Ratio 13.68%
Target 16.89%
Variance to Target: -3.21%
Recommendation:
Receive and file
Item 6F 60 RIVERSIDE TRANSIT AGENCY 1825 Third Street Riverside, CA 92507
September 16, 2021
TO: BOARD OF DIRECTORS
THRU: Larry Rubio, Chief Executive Officer
FROM: Jim Kneepkens, Chief Marketing Officer
SUBJECT: Transportation NOW Update
Summary: Transportation NOW (T-NOW) has six chapters: Greater Riverside, Hemet/San Jacinto Area, Moreno Valley/Perris, Northwest, San Gorgonio Pass and Southwest. Each chapter meets monthly at a location convenient to the membership. Attendance includes transit users, elected officials, transit advocates, community activists and Riverside Transit Agency (RTA) staff. This report summarizes the activities of each chapter for the month of July 2021. All chapters were dark in August. Detailed minutes are available on the Transportation NOW webpage.
Greater Riverside Chapter The chapter received a presentation from UC Riverside on transit services and programs for students, staff and faculty. The presentation highlighted the fact that the university expects to resume in-person learning in the fall and is actively encouraging students to leave their cars at home and rideshare or use public transportation. RTA gave a ridership report, provided information on free vaccination clinics hosted by the Agency, free rides for college students and youth, and the Agency’s decision to launch a service change a month early in August. County representative Lizbeth Limon provided an update on COVID-19 vaccinations, adding that 47 percent of county residents over 12 have been fully vaccinated.
Hemet/San Jacinto Area Chapter RTA gave an update on the recently signed state budget bill, which includes $2.5 billion for the Transit and Intercity Rail Capital Program (TIRCP) that supports greenhouse gas emission-reducing transit projects. RTA also provided a ridership report that showed ridership down nearly 60 percent compared to pre-pandemic levels. RTA encouraged the group to spread the word about a vaccination clinic in Hemet during July, as well as free rides for youth and
Item 6G 61 college students. The group supported future presentations from IE Commuter about rideshare programs, Riverside County Transportation Commission on county-wide transportation plans, and RTA’s plan to study microtransit in the Hemet-San Jacinto area.
Moreno Valley/Perris Chapter The chapter expressed a desire to return to in-person meetings and examine options for meeting locations. RTA gave an update on recently signed state budget bill that would benefit public transportation. RTA also provided a ridership report that showed ridership down nearly 60 percent compared to pre-pandemic levels and encouraged the group to spread the word about free rides for youth and college students. RTA also provided highlights of the August 15 service change. Chapter members discussed state grant opportunities to help cities mitigate homelessness and that future speakers should include representatives from area school districts and Moreno Valley College.
Northwest Chapter The chapter received a presentation from the Corona-Norco Unified School District on safety protocols, transportation and parent communication as approximately 50,000 students in the district enter the classroom again. The presentation highlighted the fact that, with few exceptions, schedules are resuming to normal. RTA gave a ridership report, provided information on free vaccination clinics hosted by the Agency, free rides for college students and youth, and the Agency’s decision to launch a service change a month early in August. The group invited South Coast Air Quality Management District to provide a presentation at the September meeting.
San Gorgonio Pass Area Chapter Southern California Gas Company provided a presentation on its efforts to curb harmful emissions. The presentation covered the importance of renewable energy sources such as solar and wind, as well as future plans to build hydrogen fueling facilities in the region. RTA gave an update on the state budget, adding that transportation was expected to benefit from increased funding. RTA gave a ridership report that showed ridership down more than 60 percent compared to pre-pandemic levels. RTA also provided information on free vaccination clinics, free rides for college students and youth, and the Agency’s decision to launch a service change in August.
Item 6G 62 Southwest Chapter The group heard a presentation from the City of Lake Elsinore’s Nicole Daily on the city’s ongoing and future projects for residents and visitors alike. As one of the fastest-growing cities in the nation, Dailey explained that Lake Elsinore has several crucial projects underway, including park and trail expansions, home construction and road improvements. Several future retail projects are also slated to open in the city over the next couple years. RTA gave a ridership report, provided information on the college and youth free ride program, and gave on update on the Agency’s service change in August. The group agreed to go dark in August and hear a presentation from the City of Canyon Lake during the next meeting in September.
Recommendation:
Receive and file.
Item 6G 63 Item 6H 64 Item 6H 65 Item 6H 66 Item 6H 67 RIVERSIDE TRANSIT AGENCY 1825 Third Street Riverside, CA 92507
September 16, 2021
TO: BOARD OF DIRECTORS
THRU: Larry Rubio, Chief Executive Officer
FROM: Charlie Ramirez, Chief Financial Officer Albert Jimenez, Director of Risk Management
SUBJECT: Annual Report for Public Agencies Self-Insured for Workers’ Compensation Benefits and Actuarial Study Results for Workers’ Compensation Program
Summary: The Agency is self-insured for workers’ compensation benefits. By October 1st of each year, public agencies that are self-insured for workers’ compensation benefits are required to file a report with the State of California covering the previous fiscal year’s activity. The Agency’s annual report was filed with the State on July 14th - prior to the October 1st deadline. The California Labor Code requires each public self-insurer to advise its governing Board within 90 days after submission of the Self-Insurers Annual Report of the total liabilities reported and whether the calculation of those liabilities complies with the requirements of Government Accounting Standards Board (GASB) Publication 10.
In conjunction with this filing each year, the Agency commissions an annual actuarial study of the workers’ compensation program. This year, the study was performed by Aon Risk Solutions (Aon). Aon utilized historical trends and statistical modeling to develop ultimate cost projections for two types of workers’ compensation incidents. The first is for existing open claims that have already been filed. The second is for claims that do not yet exist, however, are for incidents that are estimated to have already occurred. These types of incidents are commonly referred to as Incurred But Not Reported (IBNR). At the conclusion of their study, Aon accumulated the ultimate cost projections for all open and IBNR claims. This amount is the Agency’s Estimated Outstanding Losses. The Estimated Outstanding Losses represent the amount that the Agency must hold in reserve, as of the reporting date, to ensure the appropriate resources are set aside to fund these claims into the future.
Item 6I 68 The results of this year’s study indicate the Agency’s Estimated Outstanding Losses as of June 30, 2021 (FY21) for workers’ compensation totaled $3,406,433.
A comparison of the Agency’s Projected Financial Position to the prior fiscal year is shown below:
June 30, June 30, Change 2020 2021 Incr.+/(Decr.)
Assets Available $ 2,830,630 $ 3,406,433 $ 575,803
Estimated Outstanding Losses $ 2,830,630 $ 3,406,433 575,803
Projected Financial Position - - - (Assets - Estimated Outstanding Losses)
Estimated Outstanding Losses increased $575,803 over the prior year. This increase is larger than usual and is primarily due to the increased costs per claim. Assets Available represent the Agency resources set aside to cover the Estimated Outstanding Losses. As indicated in the table above, the Agency had adequate Assets Available to fund the Estimated Outstanding Losses as of June 30, 2021 and June 30, 2020.
The workers’ compensation liabilities reported by the Agency are in compliance with the requirements of GASB Publication 10.
The full results and report of the actuarial study performed by Aon for the Agency’s workers’ compensation program is attached to this report.
Fiscal Impact:
None
Committee Recommendation:
This item was discussed at the Board Administration and Operations Committee Meeting of September 1, 2021. The committee members unanimously approved and recommended this item to the full Board of Directors for their consideration.
Item 6I 69 Recommendation:
Accept the Actuarial Study Results for the Workers’ Compensation Program.
Item 6I 70
Riverside Transit Agency
Actuarial Study of the Self-Insured Workers Compensation Program as of June 30, 2021
August 12, 2021
17875 Von Karman Avenue, Suite 300 Irvine, CA 92614 tel: 949.608.6300Item 6I • www.aon.com 71 Aon Risk Solutions | Global Risk Consulting | Actuarial and Analytics
August 12, 2021
Riverside Transit Agency 1825 Third Street Riverside, California 92507
Attn: Mr. Albert Jimenez Director of Risk Management
Actuarial Study of the Self-Insured Workers Compensation Program as of June 30, 2021
This study has been completed for the Riverside Transit Agency for the specific objectives listed in the study. It contains the analysis and conclusions of our work.
Each section and appendix of the study is an integral part of the whole. We recommend a review of the entire study prior to reliance upon this study.
No key personnel have a relationship with the Riverside Transit Agency that may impair our objectivity.
Please call if you have any questions. Thank you for the opportunity to be of service.
Respectfully submitted,
Aon Risk Consultants, Inc.
By Tracy Fleck, ACAS, MAAA Ruqaya Alloo Senior Consultant and Actuary Risk Analyst
X:\Clients\Actuarial\R\Riverside Transit Agency 613\2021_06_30\Report\RTA_01WC_063021_081221.doc
17875 Von Karman Avenue, Suite 300 Irvine, CA 92614 tel: 949.608.6300Item 6I • www.aon.com 72 Aon Risk Solutions | Global Risk Consulting | Actuarial and Analytics
Table of Contents
I. Background ...... 1
II. Objectives ...... 3
III. Conclusions ...... 4
Appendices A Conditions and Limitations B Glossary of Actuarial Terms C Exhibits
Item 6I 73
I. Background
The Riverside Transit Agency (RTA) is self-insured for workers compensation up to $750,000. RTA maintains excess insurance coverage for claims that exceed $750,000. The program year runs from July 1 to June 30. The history of self-insured retentions is as shown in Table I-1.
Table I-1 History of Self-Insured Retentions
Self-Insured Claim Period Retentions (1) (2) To 2000/01 $250,000 2001/02 350,000 2002/03 400,000 2003/04 500,000 2004/05 to present 750,000
Note: Above information provided by RTA.
Data
The loss data provided for this study by RTA consisted of individual claim detail valued as of June 30, 2021. The data included claim number, date of loss, and paid, case reserves, incurred, and recovery amounts, among other fields.
The exposure data provided for this study by RTA consisted of payroll for 2013/14 through 2022/23. We also relied on prior years’ payroll provided for our previous studies.
In conducting this analysis, we relied upon the provided data without audit or independent verification; however, we reviewed it for reasonableness and consistency. Any inaccuracies in quantitative data or qualitative representations could have a significant effect on the results of our review and analysis. Any material discrepancies discovered in the loss data by RTA or any other parties should be reported to us immediately, and if warranted, we will make appropriate amendments to the report.
Item 6I 74 1
COVID-19
We reviewed RTA’s claim experience during March 2020 through June 2021 to ascertain any impact of COVID-19 on its workers compensation losses. RTA incurred one $15 claim identified in data as being attributed to COVID-19. Also, we did not observe any material change in the reported claim frequency. As such, we assumed no impact of COVID-19 on RTA’s workers compensation claims.
Due to the limited data currently available regarding the impact of COVID-19 on claims, the projected losses for 2019/20 and 2020/21 are subject to more uncertainty than usual.
Item 6I 75 2
II. Objectives
The specific objectives of this study are:
1. Estimate Outstanding Losses. Estimate outstanding losses (including allocated loss adjustment expenses [ALAE]) as of June 30, 2021.
The estimated outstanding losses are the cost of unpaid claims. The estimated outstanding losses include case reserves and the development of known claims and incurred but not reported (IBNR) claims. ALAE are the direct expenses for settling specific claims. The amounts are limited to the self-insured retention.
2. Project Ultimate Limited Losses. Project ultimate limited losses (including ALAE) for 2021/22 and 2022/23.
The projected ultimate limited losses are the accrual value of losses with accident dates during 2021/22 and 2022/23, regardless of report or payment date. The amounts are limited to the self-insured retention.
3. Project Losses Paid. Project losses paid during 2021/22 and 2022/23.
The projected losses paid are the claim disbursements during 2021/22 and 2022/23, regardless of accident or report date. The amounts are limited to the self-insured retention.
4. Size of Loss Distribution Analysis. Analyze the distribution of losses in various layers.
5. Affirm GASB Statement No. 10. Provide a statement affirming the conclusions of this report are consistent with Governmental Accounting Standards Board (GASB) Statement No. 10.
Item 6I 76 3
III. Conclusions
We have reached the following conclusions:
1. Estimate Outstanding Losses
The estimated outstanding losses as of June 30, 2021 are shown in Table III-1.
Table III-1 Estimated Outstanding Losses June 30, 2021
Present Value of Estimated Estimated Outstanding Outstanding Confidence Level Losses Losses (1) (2) (3) (A) Expected (55%) $3,406,433 $3,361,483 (B) 75% $3,747,076 $3,697,631
(C) 90% $4,258,041 $4,201,854
Note: (A) is from Exhibit WC-11. (B) is based on (A), a lognormal distribution, and actuarial judgment. The 75% and 90% confidence levels were calculated for RTA planning purposes only. With the exception of this calculation, all other estimates contained within this report are at the expected (55%) level of confidence.
The estimated outstanding losses increased by $0.6 million from $2.8 million as of June 30, 2020 to $3.4 million as of June 30, 2021. This change consists of:
• +$1.1 million for the additional year (2020/21) of exposure; • -$0.8 million for claim payments made during 2020/21; and • +$0.2 million due to the change in projected ultimate losses for claim periods 2019/20 and prior.
The present value of the estimated outstanding losses is the estimated outstanding losses discounted to reflect future investment earnings. It is based on a 0.5% interest rate, as provided by RTA.
The estimated outstanding losses reflect the excess insurance maintained by RTA.
GASB Statement No. 10 requires public entities to recognize the impact of all benefits paid for work-related injuries.
Item 6I 77 4
GASB Statement No. 10 specifies that a liability for outstanding unallocated loss adjustment expenses (ULAE) needs to be established for governmental entities. ULAE are primarily composed of future claims administration for open claims. They are typically 5% to 10% of the estimated outstanding losses.
2. Project Ultimate Limited Losses
The projected ultimate limited losses for 2021/22 and 2022/23 are shown in Table III-2A.
Table III-2A Projected Ultimate Limited Losses
Full Value Present Value Projected Loss Rate Projected Loss Rate Projected Payroll per $100 of Ultimate per $100 of Ultimate Claim Period (000) Payroll Losses Payroll Losses (1) (2) (3) (4) (5) (6) (A) 2021/22 $28,253 $4.57 $1,292,000 $4.51 $1,274,000 (B) 2022/23 $29,100 $4.66 $1,357,000 $4.60 $1,338,000
Note: (A) and (B) are from Exhibit WC-10.
The present value of the projected ultimate limited losses is based on a 0.5% interest rate.
RTA’s workers compensation exposure on any one claim is capped at RTA’s SIR. The SIR cap was included in the calculation of projected ultimate limited losses.
We compare the projected ultimate limited losses from the prior actuarial report (2020/21) to the current study (2021/22) as shown in Table III-2B.
Table III-2B Comparison of Projected Ultimate Limited Losses
Projected Loss Rate Projected Payroll per $100 of Ultimate Claim Period (000) Payroll Losses (1) (2) (3) (4) (A) 2020/21 (prior study) $27,557 $4.71 $1,297,000 (B) 2021/22 (current study) $28,253 $4.57 $1,292,000
(C) Change (B) - (A) $696 ($0.14) ($5,000)
Note: (A) is from the prior actuarial report dated July 30, 2020. (B) is from Table III-2A.
Item 6I 78 5
The projected ultimate limited losses at alternative SIRs for 2021/22 are shown in Table III-2C.
Table III-2C Projected Ultimate Limited Losses 2021/22 Alternative Self-Insured Retentions
Present Value of Projected Projected Ultimate Ultimate Self-Insured Limited Limited Retention Losses Losses (1) (2) (3) (A) $250,000 $1,230,000 $1,213,000 (B) $500,000 $1,279,000 $1,261,000 (C) $750,000 $1,292,000 $1,274,000 (D) $1,000,000 $1,305,000 $1,287,000
Note: (C) is from Exhibit Table III-2A. (A), (B), and (D) are based on (C) and actuarial judgment.
3. Project Losses Paid
The projected losses to be paid during 2021/22 and 2022/23 are shown in Table III-3.
Table III-3 Projected Losses Paid 2021/22 and 2022/23
Item 2021/22 2022/23 (1) (2) (3) (A) Projected losses paid $939,687 $1,023,148
Note: (A) is from Exhibits WC-12 and WC-13.
The projected losses paid reflect the excess insurance maintained by RTA.
Item 6I 79 6
Loss Experience Trends
Graphs III-1 and III-2 show loss experience trends for RTA’s workers compensation claims as measured by loss rate per $100 of payroll and frequency and severity, respectively.
Graph III-1 Loss Rate per $100 of Payroll
$6.00 $5.14
$5.00 $4.57 $4.66 $4.32 $4.41 $4.23 $4.10 $3.91 $4.00 $4.51
$3.00 $3.37 $3.05 $2.68 $2.00
$1.00
$0.00 2011/12 2012/13 2013/14 2014/15 2015/16 2016/17 2017/18 2018/19 2019/20 2020/21 2021/22 2022/23
Historical Projected
Note: Loss rates are from Exhibit WC-10, columns (4) and (7).
Item 6I 80 7
Graph III-2 Frequency and Severity
$30,000 3.50 $27,813 3.15 $26,137 $24,702 3.00 $25,000 2.73 $21,128 $21,642 $20,407 2.26 2.50 $20,000 1.97 2.04 $16,548 1.94 $16,513 2.00 $14,918 1.75 1.62 $15,000 $12,412 1.50 1.52 $10,000 1.49 AVERAGE COST PER CLAIMAVERAGEPER COST 1.00
$5,000 NUMBERPAYROLLOF$1M CLAIMSPEROF 0.50 22 42 51 27 39 49 39 51 46 49 $0 0.00 2011/12 2012/13 2013/14 2014/15 2015/16 2016/17 2017/18 2018/19 2019/20 2020/21
Severity # of Reported Claims Frequency
Note: Frequency amounts are from Exhibit WC-8, Section I, column (7). Severity amounts are based on the projected claim counts in Exhibit WC-8 and the projected ultimate losses in Exhibit WC-9.
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Graph III-3 shows the composition of the projected ultimate limited losses.
Graph III-3 Composition of Projected Ultimate Limited Losses
$1.6
$1.4 Millions $1.2
$1.0
$0.8
$0.6
$0.4
$0.2
$0.0 2002/03 2003/04 2004/05 2005/06 2006/07 2007/08 2008/09 2009/10 2010/11 2011/12 2012/13 2013/14 2014/15 2015/16 2016/17 2017/18 2018/19 2019/20 2020/21 2021/22 2022/23
Paid Losses Case Reserves IBNR Projected
Note: Amounts through 2020/21 are from Exhibit WC-11. Amounts for 2021/22 and 2022/23 are from Exhibit WC-10.
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4. Size of Loss Distribution Analysis
Graphs III-4A and III-4B show the distribution of workers compensation losses for the last 10 years, with each dot representing one claim.
Graph III-4A Distribution of Incurred Losses – Below $100,000
Graph III-4B Distribution of Incurred Losses – Above $100,000
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Table III-4 shows the distribution claims by size for RTA’s workers compensation claims.
Table III-4 Size of Loss Distribution
Total Percent of Cumulative Total Reported Percent of Cumulative Reported Total Percent of Incurred Total Percent of Claim Size Claims (2)/Total(2) Total Losses (5)/Total(5) Total (1) (2) (3) (4) (5) (6) (7) (A) $1 to $5,000 956 69.3% 69.3% $886,219 4.2% 4.2% (B) $5,000 to $10,000 86 6.2% 75.5% 611,909 2.9% 7.1% (C) $10,000 to $25,000 129 9.3% 84.9% 2,179,727 10.3% 17.4% (D) $25,000 to $50,000 78 5.7% 90.5% 2,768,116 13.1% 30.5% (E) $50,000 to $100,000 80 5.8% 96.3% 5,485,096 25.9% 56.4% (F) $100,000 to $250,000 41 3.0% 99.3% 6,122,055 29.0% 85.4% (G) $250,000 to $500,000 10 0.7% 100.0% 3,090,754 14.6% 100.0% (H) $500,000 to $750,000 0 0.0% 100.0% 0 0.0% 100.0% (I) $750,000 to $1,000,000 0 0.0% 100.0% 0 0.0% 100.0% (J) Over $1,000,000 0 0.0% 100.0% 0 0.0% 100.0% (K) Total (A) … (J) 1,380 100% $21,143,875 100%
Note: See Exhibit WC-16. Claim counts exclude claims with incurred value of $0.
For RTA’s workers compensation claims, about 76% of the non-zero claims reported are below $10,000 and represent about 7% of the incurred amounts. The remaining 24% of the claims consume about 93% of the incurred amounts.
5. Affirm GASB Statement No. 10
We affirm the conclusions of this report are consistent with GASB Statement No. 10.
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Appendix A
Conditions and Limitations
It is important to understand the conditions and limitations listed below. Each chapter and section is an integral part of the whole study. If there are questions, please contact Aon for clarification.
• Data Quality In conducting this analysis, we relied upon the provided data without audit or independent verification; however, we reviewed it for reasonableness and consistency. Any inaccuracies in quantitative data or qualitative representations could have a significant effect on the results of our review and analysis. Any material discrepancies discovered in the loss data by the organization or any other parties should be reported to us immediately, and if warranted, we will make appropriate amendments to the report.
• Economic Environment. Unless otherwise stated, we assumed the current economic conditions will continue in the foreseeable future.
• Insurance Coverage. Unless otherwise stated, we assumed no insurance coverage changes (including coverage provided by the organization to others) subsequent to the date this study was prepared. This includes coverage language, self-insured retention, limitations and similar issues.
• Insurance Solvency. Unless otherwise stated, we assumed all insurance purchased by the organization is from solvent sources payable in accordance with terms of the coverage document.
• Interest Rate. The exhibits specify the annual interest rate used.
• Methodology. In this study, different actuarial methods were applied. In some instances, the methods yield significantly disparate results. The estimates, projections and recommendations in this study reflect our judgments as to the best method or combination of methods that are most reliable and reflective of the exposure to loss.
• Reproduction. Use of this report is limited to the organization for the specific purpose described in the Introduction section. Other uses are prohibited without an executed release with Aon.
Distribution by the organization is unrestricted. The report should only be distributed in its entirety including all supporting exhibits.
• Risk and Variability. Insurance is an inherently risky enterprise. Actual losses may vary significantly from our estimates, projections and recommendations. They may emerge higher or lower.
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• Statutory and Judicial Changes. Legislatures and judiciaries may change statutes that govern indemnification. This includes benefit levels for workers compensation, immunities and limitations for liability, and other similar issues. Unless otherwise stated, we assumed no statutory changes subsequent to the date this study was prepared.
• Supplemental Data. In addition to the data provided by the organization, we supplemented our analysis with data from similar organizations and insurance industry statistics, as we deemed appropriate.
• Usage. This study has been prepared for the usage of the organization shown on the transmittal page. It was not prepared for and may not be appropriate for use by other organizations. Other organizations should obtain written permission from Aon prior to use of this study.
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Appendix B
Glossary of Actuarial Terms
Actuarial Methods (Most Common)
A major objective of an actuarial study is to statistically project ultimate losses. The following actuarial methods are the most common:
• Developed Paid Losses • Developed Reported Incurred Losses • Developed Case Reserves • Frequency Times Severity Analysis • Loss Rate Analysis
The following describes each method:
1. Developed Paid Losses. Paid losses represent the amounts actually paid to claimants (less excess insurance recoveries). As time goes on, loss payments continue until all claims are closed and there are no remaining payments expected. At this time, the ultimate losses for the claim period are known. This common process is called “paid loss development.”
Paid loss development is an extrapolation of actual dollars paid. It does not depend on case reserve estimates. A potential shortcoming of utilizing this method is that only a small fraction of total payments have been made for the most recent claim periods. Extrapolating ultimate losses based on small amounts of actual payments may be speculative. A second potential shortcoming is that payment patterns can change over time.
2. Developed Reported Incurred Losses. Reported incurred losses are paid losses plus case reserves. In most programs, total reported incurred losses underestimate the ultimate losses. Over time, as more information about a body of claims becomes known, they are adjusted either up or down until they are closed. Though many individual claims settle for less than what was estimated, these decreases are generally more than offset by increases in the cost of other claims for which new information has emerged.
The net effect is that total estimated costs are often revised upward over time. This normal process is called “reported incurred loss development.” Actuaries typically review the development patterns of the recent past to make projections of the expected future loss development and, therefore, estimations of ultimate losses.
3. Developed Case Reserves. A case reserve is an estimate of the unpaid amount established by claims adjusters for which a particular claim will ultimately be settled or adjudicated. The developed case reserves method is a hybrid of the paid loss development and reported incurred loss development methods. It relies on the historical adequacy of case reserves to predict ultimate losses.
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4. Frequency Times Severity Analysis. The frequency times severity analysis is an actuarial method that uses a preliminary projection of ultimate losses to project claims severity. The claims severity times the number of claims is a predictor of ultimate losses. The focus of the frequency times severity analysis is that ultimate losses each period are dependent on the number of claims.
5. Loss Rate Analysis. The loss rate analysis is based on the historical loss rates per exposure unit (such as payroll, vehicles or property value). The loss rates (projected ultimate losses divided by exposure units) are trended to reflect the effect of claim cost inflation and retention changes. The trended loss rates represent the rates that one would see if all of the claims had been handled in the claim cost environment that will be present in the upcoming period. The trended loss rate times the projected exposure units is a predictor of losses.
6. Bornhuetter-Ferguson Method (B-F). The B-F method is an actuarial method that weights a preliminary projection of ultimate losses with projections of ultimate losses determined by other actuarial methods (usually the developed paid losses and developed reported incurred losses methods). For less mature claim periods, the B-F method leans more heavily to the preliminary projection. It gradually converges to the projections of ultimate losses determined by the other actuarial methods as the claim periods mature.
Actuary
A specialist trained in mathematics, statistics, and finance who is responsible for rate, reserve, and dividend calculations and other statistical studies.
Allocated Loss Adjustment Expenses
Allocated loss adjustment expenses (ALAE) are the direct expenses to settle specific claims. These expenses are primarily legal expenses.
Governmental Accounting Standards Board (GASB) Statement No. 10 requires that ALAE be included in financial statements and that they be calculated by actuarial methods.
American Academy of Actuaries
A society concerned with the development of education in the field of actuarial science and with the enhancement of standards in the actuarial field. Members may use the designation MAAA (Member, American Academy of Actuaries).
Benefits
The financial reimbursement and other services provided insureds by insurers under the terms of an insurance contract. An example would be the benefits listed under a life or health insurance policy or benefits as prescribed by a workers compensation law.
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Casualty Actuarial Society
A professional society for actuaries in areas of property and casualty insurance work. This society grants the designation of Associate of the Casualty Actuarial Society (ACAS) and Fellow of the Casualty Actuarial Society (FCAS).
Claim
Demand by an individual or entity to recover for a loss.
Claims Made
A policy written on this basis covers only those claims that are made during the policy period. Coverage for prior acts is provided back to what is known as the retroactive date, which is the effective date of the original claims made policy with the same insurer.
Composite Rate
A single rate with a single basis of premium (e.g., payroll or sales). For this single rate the insured is covered for a variety of hazards, such as premises and operations, completed operations, products liability, and automobile. Its primary value is to compute premium simply.
Confidence Level
A confidence level is the statistical certainty that an actuary believes funding will be sufficient. For example, an 80% confidence level means that the actuary believes funding will be sufficient in eight years out of ten.
Confidence levels are determined based on mathematical models. Coverages that are low frequency and high severity (such as excess liability) are subject to greater risk than coverages that are high frequency and low severity (such as automobile physical damage). Therefore, they need a greater margin to attain a given confidence level.
Coverage
The scope of the protection provided under a contract of insurance.
Credibility
Credibility is the belief that the sample data is an accurate reflection of the larger population. Credibility is highest when the sample data is large and the standard deviation (discussed later) of the larger population is low.
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Dates
There are at least three milestone dates in a claim. They are the date of injury or accident, the date of report and the date of closure. It is best if each of these dates is recorded. Some organizations may also keep the date a claim becomes a lawsuit, as opposed to a demand. Aon recommends this additional level of detail, especially if the data is to be used for litigation management.
Deductible
The portion of an insured loss to be borne by the insured before they are entitled to recovery from the insurer. Deductibles may be expressed as a dollar amount, percentage or waiting period.
Disability
A condition that curtails a person’s ability to carry on his normal pursuits. A disability may be partial or total, and temporary or permanent.
Dividend (Policyholder)
The return of part of the premium paid for a policy issued on a participating basis by either a mutual or a stock insurer.
Estimated Outstanding Losses
Estimated outstanding losses are the cost of claims that have occurred but have not yet been paid. They typically include indemnification and allocated loss adjustment expenses (ALAE), but not unallocated loss adjustment expenses (ULAE).
Estimated outstanding losses are calculated as projected ultimate losses less paid losses. Alternatively, they are the sum of case reserves and incurred but not reported (IBNR) claims.
Estimated outstanding losses are usually the largest single item listed as a liability on the balance sheet of a public entity’s financial statement. GASB Statement No. 10 requires they be calculated by actuarial methods. Other common names for estimated outstanding losses are outstanding claims liabilities and unpaid claims.
Experience Rating
A method of adjusting the premium for a risk based on past loss experience for that risk compared to loss experience for an average risk.
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Exposure Data
Exposure data refers to the activities of the organization. For example, payroll is the most common exposure measure for workers compensation. Aon suggests collecting exposure data with the following characteristics:
➢ Readily Available. The exposure data should be easily obtained. It is best if it is a byproduct of other activities, although this is not always possible. If getting data is arduous, it may discourage collection.
➢ Vary With Losses. The exposure data should correlate directly with losses. The ideal situation is where exposure and expected losses move in tandem. The exposure base needs to be fitting to the coverage. For example, the number of employees may vary with property losses (more employees = more office space = more losses), but property value is a clearly superior exposure base for property losses.
Generally Accepted Accounting Principles (GAAP)
These principles are intended to produce financial results (in the insurance industry) consistent with those of other industries and to assure consistency in financial reporting.
Incurred But Not Reported (IBNR)
IBNR is really comprised of two distinct items. These are the development of known case reserves (incurred but not enough reported [IBNER] and incurred but not yet reported [IBNYR]).
IBNER are the actuary’s estimate of the inadequacy of case reserves. Most claims settle at amounts close to what is set by the claims administrator. Some claims close favorably and some emerge as more expensive. On balance, case reserves tend to be too low (especially for recent years). IBNER is the actuary’s estimate of the amount total case reserves will rise upon closure.
IBNYR refers to those claims that have occurred, but have not yet been reported. A classic example is medical malpractice claim reported several years after the medical procedure was performed.
Insurance Services Office (ISO)
An organization of the property and casualty insurance business designed to gather statistics, promulgate rates, and develop policy forms.
Investment Income
The return received by entities from their investment portfolios, including interest, dividends and realized capital gains on stocks. Realized capital gains means the profit realized on
Item 6I 91 18
assets that have actually been sold for more than their purchase price.
Limited
Most programs purchase excess insurance for catastrophic claims. For example, they may purchase coverage for claims above a $500,000 per occurrence self-insured retention. “Limited” refers to an estimate or projection being limited to the self-insured retention. In contrast, “unlimited” means a loss projection not limited to the self-insured retention.
Other common names for limited are net of excess insurance or capped losses.
Loss Development
The difference between the amount of losses initially estimated by the insurer and the amount reported in an evaluation on a later date. Loss development is typically measured for paid losses, reported incurred losses and claim counts.
Manual Rates
Usually, the published rate for some unit of insurance. An example is in the workers compensation manual, where the rates shown apply to each $100 of the payroll of the insured, $100 being the “unit.”
National Council on Compensation Insurance (NCCI)
An association of workers compensation insurance companies whose main functions are collecting statistics and calculating rates, establishing policy wording, developing experience and retrospective rating plans, and serving as the filing organization for member companies.
Net
Many pooling programs assign deductibles to members. For example, each member may have a $5,000 per claim deductible. “Net” refers to a loss estimate or projection that excludes amounts below member deductibles.
Occurrence
An event that results in an insured loss. In some lines of insurance, such as general liability, it is distinguished from accident in that the loss does not have to be sudden and fortuitous and can result from continuous or repeated exposure that results in bodily injury or property damage neither expected nor intended by the insured.
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Pool
An organization of entities through which particular types of risks are written with the premiums, losses, and expenses shared in agreed amounts among the members belonging to the organization.
Premium
The price of insurance protection for a specified risk for a specified period of time.
Present Value
The amount of money that future amounts receivable are currently worth. For example, a Life Insurance policy may provide for payments to be made monthly for ten years. The present value of that money would be less than the total amount of the regular periodic payments for 10 years because of the amount of interest that a present lump sum could earn during the term than the payments otherwise would have been made.
Probability
The probability is the likelihood of an event. It is a measure of how likely a value or event is to occur. It can be measured from data by calculating the number of occurrences of the value or event divided by the total number of occurrences. This calculation can be converted to a percentage. For example, tossing a coin has a 50% probability of heads or tails.
Projected Losses Paid
Projected losses paid are the projected claims disbursements in a period, regardless of when the claim occurred. They typically include indemnification and ALAE, but not unallocated loss adjustment expenses (ULAE).
“Projected losses paid” is a cash-flow analysis that can be used in making investment decisions.
Projected Ultimate Losses
Projected ultimate losses are the accrual value of claims. They are the total amount that is expected to be paid in a particular claim period after all claims are closed. Projected ultimate losses are the total loss costs for a particular period. They typically include indemnification and ALAE, but not ULAE.
Other common names for projected ultimate losses are expected losses, ultimate losses and total losses.
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Rate
The cost of a given unit of insurance. For example, in life insurance, it is the price of $1,000 of the face amount. In property insurance, it is the rate per $100 of value to be insured. The premium is the rate multiplied by the number of units of insurance purchased.
Retrospective Rating
A method for which the final premium is not determined until the end of the coverage period, and is based on the insured’s own loss experience for that same period. It is usually subject to a maximum and minimum premium. A plan of this type can be used in various types of insurance, especially workers compensation and liability, and is usually elected by only very large insureds.
Salvage
Property taken over by an entity to reduce its loss. Automobile physical damage losses can be reduced by the sale of recovered vehicles.
Schedule Rating
The application of debits or credits within established ranges for various characteristics of a risk according to an established schedule of items. Under liability and automobile insurance, the schedule rating plan allows credits and debits for various good or bad features of a particular commercial risk. An example in automobile schedule rating would be allowing credits for driver training classes or fleet maintenance programs.
Self-Insurance Retention (SIR)
That portion of a risk or potential loss assumed by an insured. It is often in the form of a per occurrence deductible.
Society of Actuaries (SOA)
A professional society for actuaries in areas of pensions, and life and health insurance work. The SOA grants the designation Associate of the Society of Actuaries (ASA) and Fellow of the Society of Actuaries (FSA).
Standard Premium
Most often used in connection with retrospective rating for Workers Compensation and General Liability Insurance. It is the premium of which the basic premium is a percentage and is developed by applying the regular rates to an insured’s payroll.
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State Fund
A fund set up by a state government to finance a mandatory insurance system, such as Workers Compensation or non-occupational disability benefits. Such a fund may be monopolistic, i.e., purchasers of the type of insurance required must place it in the state fund; or it may be competitive, i.e., an alternative to private insurance if the purchaser desires to use it.
Statutory Accounting Principles (SAP)
Those principles required by statute that must be followed by an insurance company or other similar entity when submitting its financial statement to the state insurance department. Such principles differ from (GAAP) in some important respects. For one thing SAP requires that expenses must be recorded immediately and cannot be deferred to track with premiums as they are earned and taken into revenue.
Unallocated Loss Adjustment Expenses
Unallocated loss adjustment expenses (ULAE) are the indirect expenses to settle claims. These expenses are primarily administration and claims handling expenses.
GASB Statement No. 10 requires that ULAE be included in financial statements and that they be calculated by actuarial methods.
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Appendix C
Exhibits
The attached exhibits detail our analysis.
Item 6I 96 23 RIVERSIDE TRANSIT AGENCY Exhibit WC-1 (page 1) WORKERS' COMPENSATION Data Summary as of June 30, 2021 Losses Limited to Self-Insured Retention
Limited Limited Limited Reported Specific Months of Reported Open Paid Case Incurred Claim Self-Insured Aggregate Development Payroll Claims Claims Losses Reserves Losses Period Retention Retention 6/30/21 (000) 6/30/21 6/30/21 6/30/21 6/30/21 6/30/21 (1) (2) (3) (4) (5) (6) (7) (8) (9) (10) ------to 2001/02 See Note None 240.0 Not Provided 742 0 $7,407,157 $0 $7,407,157 2002/03 400,000 None 228.0 11,390 57 0 953,894 0 953,894 2003/04 500,000 None 216.0 12,340 39 0 715,575 0 715,575 2004/05 750,000 None 204.0 12,160 24 0 394,137 0 394,137 2005/06 750,000 None 192.0 12,700 43 0 523,293 0 523,293 2006/07 750,000 None 180.0 13,817 42 0 558,583 0 558,583 2007/08 750,000 None 168.0 14,821 44 0 691,957 0 691,957 2008/09 750,000 None 156.0 15,215 44 0 1,001,134 0 1,001,134 2009/10 750,000 None 144.0 13,766 36 2 813,088 180,380 993,468 2010/11 750,000 None 132.0 13,890 38 3 852,784 206,824 1,059,607 2011/12 750,000 None 120.0 14,482 22 0 611,880 0 611,880 2012/13 750,000 None 108.0 15,397 42 1 688,391 4,989 693,380 2013/14 750,000 None 96.0 16,208 51 2 620,599 8,780 629,380 2014/15 750,000 None 84.0 18,075 27 1 491,659 44,919 536,579 2015/16 750,000 None 72.0 20,093 39 6 473,431 238,240 711,671 2016/17 750,000 None 60.0 21,707 49 5 556,242 102,335 658,577 2017/18 750,000 None 48.0 24,060 39 5 446,582 118,205 564,786 2018/19 750,000 None 36.0 25,915 51 13 830,100 231,908 1,062,009 2019/20 750,000 None 24.0 26,871 46 14 477,255 272,795 750,050 2020/21 750,000 None 12.0 26,007 49 24 201,435 255,882 457,317 ------Total 1,524 76 $19,309,177 $1,665,258 $20,974,435
+ based on the data provided and the following risk-adjustment factors to reflect the impact of COVID-19: Payroll Risk-Adjustment Risk-Adjusted Claim Period Provided Factor Payroll 2019/20 26,870,855 1.00 26,870,855 2020/21 26,007,107 1.00 26,007,107
* The specific self-insured retention changes are as follows:
Effective Date Retention ------07/01/90 $250,000 07/01/01 350,000 07/01/02 400,000 07/01/03 500,000 07/01/04 750,000
(8), (9) and (10) are net of the specific self-insured retention and other recoveries. Data was providedItem by6I RTA. 97 24 RTA_01WC_063021.xlsx RIVERSIDE TRANSIT AGENCY Exhibit WC-1 (page 2) WORKERS' COMPENSATION Data Summary as of June 30, 2021 Net Unlimited Losses
Net Unlimited Net Unlimited Net Unlimited Reported Specific Months of Reported Open Paid Case Incurred Claim Self-Insured Aggregate Development Payroll Claims Claims Losses Reserves Losses Period Retention Retention 6/30/21 (000) 6/30/21 6/30/21 6/30/21 6/30/21 6/30/21 (1) (2) (3) (4) (5) (6) (7) (8) (9) (10) ------to 2001/02 Unlimited None 240.0 Not Provided 742 0 $7,576,596 $0 $7,576,596 2002/03 Unlimited None 228.0 11,390 57 0 953,894 0 953,894 2003/04 Unlimited None 216.0 12,340 39 0 715,575 0 715,575 2004/05 Unlimited None 204.0 12,160 24 0 394,137 0 394,137 2005/06 Unlimited None 192.0 12,700 43 0 523,293 0 523,293 2006/07 Unlimited None 180.0 13,817 42 0 558,583 0 558,583 2007/08 Unlimited None 168.0 14,821 44 0 691,957 0 691,957 2008/09 Unlimited None 156.0 15,215 44 0 1,001,134 0 1,001,134 2009/10 Unlimited None 144.0 13,766 36 2 813,088 180,380 993,468 2010/11 Unlimited None 132.0 13,890 38 3 852,784 206,824 1,059,607 2011/12 Unlimited None 120.0 14,482 22 0 611,880 0 611,880 2012/13 Unlimited None 108.0 15,397 42 1 688,391 4,989 693,380 2013/14 Unlimited None 96.0 16,208 51 2 620,599 8,780 629,380 2014/15 Unlimited None 84.0 18,075 27 1 491,659 44,919 536,579 2015/16 Unlimited None 72.0 20,093 39 6 473,431 238,240 711,671 2016/17 Unlimited None 60.0 21,707 49 5 556,242 102,335 658,577 2017/18 Unlimited None 48.0 24,060 39 5 446,582 118,205 564,786 2018/19 Unlimited None 36.0 25,915 51 13 830,100 231,908 1,062,009 2019/20 Unlimited None 24.0 26,871 46 14 477,255 272,795 750,050 2020/21 Unlimited None 12.0 26,007 49 24 201,435 255,882 457,317 ------Total 1,524 76 $19,478,616 $1,665,258 $21,143,875
(8), (9) and (10) are gross of the specific self-insured retention and net of other recoveries. Data was providedItem by6I RTA. 98 25 RTA_01WC_063021.xlsx RIVERSIDE TRANSIT AGENCY Exhibit WC-1 (page 3) WORKERS' COMPENSATION Data Summary as of June 30, 2021 Gross Unlimited Losses
Gross Unlimited Gross Unlimited Gross Unlimited Reported Specific Months of Reported Open Paid Case Incurred Claim Self-Insured Aggregate Development Payroll Claims Claims Losses Reserves Losses Period Retention Retention 6/30/21 (000) 6/30/21 6/30/21 6/30/21 6/30/21 6/30/21 (1) (2) (3) (4) (5) (6) (7) (8) (9) (10) ------to 2001/02 Unlimited None 240.0 Not Provided 742 0 $8,305,037 $0 $8,305,037 2002/03 Unlimited None 228.0 11,390 57 0 962,352 0 962,352 2003/04 Unlimited None 216.0 12,340 39 0 730,575 0 730,575 2004/05 Unlimited None 204.0 12,160 24 0 394,137 0 394,137 2005/06 Unlimited None 192.0 12,700 43 0 545,511 0 545,511 2006/07 Unlimited None 180.0 13,817 42 0 558,583 0 558,583 2007/08 Unlimited None 168.0 14,821 44 0 736,146 0 736,146 2008/09 Unlimited None 156.0 15,215 44 0 1,001,134 0 1,001,134 2009/10 Unlimited None 144.0 13,766 36 2 821,901 180,380 1,002,281 2010/11 Unlimited None 132.0 13,890 38 3 1,050,978 206,824 1,257,802 2011/12 Unlimited None 120.0 14,482 22 0 689,784 0 689,784 2012/13 Unlimited None 108.0 15,397 42 1 688,491 4,989 693,480 2013/14 Unlimited None 96.0 16,208 51 2 620,599 8,780 629,380 2014/15 Unlimited None 84.0 18,075 27 1 495,562 44,919 540,481 2015/16 Unlimited None 72.0 20,093 39 6 477,461 238,240 715,701 2016/17 Unlimited None 60.0 21,707 49 5 560,615 102,335 662,951 2017/18 Unlimited None 48.0 24,060 39 5 462,680 118,205 580,885 2018/19 Unlimited None 36.0 25,915 51 13 847,339 231,908 1,079,248 2019/20 Unlimited None 24.0 26,871 46 14 479,341 272,795 752,136 2020/21 Unlimited None 12.0 26,007 49 24 201,435 255,882 457,317 ------Total 1,524 76 $20,629,662 $1,665,258 $22,294,920
(8), (9) and (10) are gross of the specific self-insured retention and other recoveries.
Data was provided by RTA. Item 6I 99 26 RTA_01WC_063021.xlsx RIVERSIDE TRANSIT AGENCY Exhibit WC-2 (page 1) WORKERS' COMPENSATION Summary of Percent Losses Paid, Losses Reported and Claims Reported
Percent Percent Percent Percent Percent Percent Months of Losses Losses Claims Months of Losses Losses Claims Development Paid Reported Reported Development Paid Reported Reported (1) (2) (3) (4) (5) (6) (7) (8) ------360.0 # 100.0% # 100.0% # 100.0% 360.0 100.0% 100.0% 100.0% 348.0 # 100.0% # 100.0% # 100.0% 348.0 100.0% 100.0% 100.0% 336.0 # 100.0% # 100.0% # 100.0% 336.0 100.0% 100.0% 100.0% 324.0 # 100.0% # 100.0% # 100.0% 324.0 100.0% 100.0% 100.0% 312.0 # 100.0% # 100.0% # 100.0% 312.0 100.0% 100.0% 100.0% 300.0 # 100.0% # 100.0% # 100.0% 300.0 100.0% 100.0% 100.0% 288.0 # 100.0% # 100.0% # 100.0% 288.0 100.0% 100.0% 100.0% 276.0 # 100.0% # 100.0% # 100.0% 276.0 100.0% 100.0% 100.0% 264.0 # 100.0% # 100.0% # 100.0% 264.0 100.0% 100.0% 100.0% 252.0 # 100.0% # 100.0% # 100.0% 252.0 100.0% 100.0% 100.0% 240.0 # 100.0% # 100.0% # 100.0% 240.0 100.0% 100.0% 100.0% 228.0 # 100.0% # 100.0% # 100.0% 228.0 100.0% 100.0% 100.0% 216.0 # 99.9% # 100.0% # 100.0% 216.0 99.9% 100.0% 100.0% 204.0 # 99.8% # 100.0% # 100.0% 204.0 99.8% 100.0% 100.0% 192.0 # 99.7% # 100.0% # 100.0% 192.0 99.7% 100.0% 100.0% 180.0 # 99.5% # 100.0% # 100.0% 180.0 99.5% 100.0% 100.0% 168.0 # 99.2% # 99.9% # 100.0% 168.0 99.2% 99.9% 100.0% 156.0 # 98.8% # 99.8% # 100.0% 156.0 98.8% 99.8% 100.0% 144.0 # 98.3% # 99.7% # 100.0% 144.0 98.3% 99.7% 100.0% 132.0 # 97.8% # 99.6% # 100.0% 132.0 97.8% 99.6% 100.0% 120.0 # 97.1% # 99.4% # 100.0% 120.0 97.1% 99.4% 100.0% 108.0 # 95.7% # 99.1% # 100.0% 108.0 95.7% 99.1% 100.0% 96.0 # 94.3% # 98.6% # 100.0% 96.0 94.3% 98.6% 100.0% 84.0 # 92.8% # 98.1% # 100.0% 84.0 92.8% 98.1% 100.0% 72.0 # 90.1% # 96.2% # 100.0% 72.0 90.1% 96.2% 100.0% 60.0 # 85.8% # 93.4% # 100.0% 60.0 85.8% 93.4% 100.0% 48.0 # 79.8% # 90.2% # 100.0% 48.0 79.8% 90.2% 100.0% 36.0 # 69.4% # 81.3% # 100.0% 36.0 69.4% 81.3% 100.0% 24.0 # 48.2% # 65.0% # 97.6% 24.0 48.2% 65.0% 97.6% 12.0 20.5% 42.0% 92.5% 12.0 20.5% 42.0% 92.5%
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0% 2402282162041921801681561441321201089684726048362412 Month of Development
Percent Percent Percent Losses Losses Claims Paid Reported Reported
(2) is from Exhibit WC-2 (page 2).
(3) is from Exhibit WC-2 (page 3).
(4) is from Exhibit WC-2 (page 4).
Item 6I 100 27 RTA_01WC_063021.xlsx RIVERSIDE TRANSIT AGENCY Exhibit WC-2 (page 2) WORKERS' COMPENSATION Historical Limited Paid Losses ($000) and Limited Paid Loss Development I. Historical Limited Paid Losses ($000)
Claim Months of Development: Period 12 24 36 48 60 72 84 96 108 120 132 144 156 168 180 192 204 216 228 240 ------to 2001/02 2002/03 225 523 748 820 878 924 929 933 936 936 940 945 954 962 962 954 954 954 954 2003/04 151 292 384 459 504 597 632 647 659 670 677 716 731 731 716 716 716 716 2004/05 34 107 290 348 362 375 379 382 384 389 389 389 392 393 394 394 394 2005/06 94 242 422 517 523 523 523 523 523 523 546 546 523 523 523 523 2006/07 248 392 425 545 547 556 558 559 559 559 559 559 559 559 559 2007/08 156 364 476 587 677 683 689 689 720 722 692 692 692 692 2008/09 121 387 594 689 867 947 985 1,001 1,001 1,001 1,001 1,001 1,001 2009/10 90 304 434 566 637 665 724 737 780 803 810 813 2010/11 358 591 814 968 819 823 827 832 832 846 853 2011/12 165 388 429 557 575 592 600 609 612 612 2012/13 135 388 562 609 625 673 686 688 688 2013/14 156 404 594 597 603 603 620 621 2014/15 147 280 349 450 485 492 492 2015/16 132 259 377 425 448 473 2016/17 219 396 470 520 556 2017/18 90 254 357 447 2018/19 296 646 830 2019/20 252 477 2020/21 201
II. Limited Paid Loss Development
Claim Months of Development: Period 12-24 24-36 36-48 48-60 60-72 72-84 84-96 96-108 108-120 120-132 132-144 144-156 156-168 168-180 180-192 192-204 204-216 216-228 228-240 240-Ult ------to 2001/02 2002/03 2.319 1.431 1.097 1.071 1.052 1.005 1.004 1.003 1.000 1.005 1.004 1.010 1.009 1.000 0.991 1.000 1.000 1.000 2003/04 1.927 1.316 1.197 1.099 1.183 1.058 1.024 1.018 1.016 1.011 1.058 1.021 1.000 0.979 1.000 1.000 1.000 2004/05 3.151 2.701 1.200 1.040 1.038 1.009 1.008 1.005 1.012 1.001 1.000 1.005 1.003 1.004 1.000 1.000 2005/06 2.580 1.743 1.226 1.012 1.000 1.000 1.000 1.000 1.000 1.042 1.000 0.959 1.000 1.000 1.000 2006/07 1.580 1.085 1.281 1.005 1.016 1.003 1.001 1.000 1.000 1.000 1.000 1.000 1.000 1.000 2007/08 2.325 1.308 1.234 1.152 1.009 1.010 1.000 1.044 1.004 0.958 1.000 1.000 1.000 2008/09 3.189 1.535 1.160 1.258 1.093 1.040 1.016 1.000 1.000 1.000 1.000 1.000 2009/10 3.378 1.427 1.305 1.125 1.044 1.087 1.018 1.058 1.030 1.008 1.004 2010/11 1.652 1.379 1.189 0.846 1.005 1.005 1.005 1.001 1.017 1.008 2011/12 2.356 1.105 1.300 1.032 1.030 1.014 1.015 1.004 1.001 2012/13 2.880 1.451 1.082 1.027 1.077 1.019 1.003 1.000 2013/14 2.588 1.469 1.005 1.010 1.000 1.029 1.000 2014/15 1.909 1.247 1.289 1.078 1.013 1.000 2015/16 1.958 1.457 1.129 1.053 1.057 2016/17 1.812 1.187 1.107 1.070 2017/18 2.819 1.402 1.252 2018/19 2.179 1.286 2019/20 1.891 2020/21
Average All 2.361 1.443 1.191 1.059 1.044 1.021 1.008 1.012 1.008 1.004 1.008 0.999 1.002 0.997 0.998 1.000 1.000 1.000 Wtd 3 2.156 1.278 1.157 1.067 1.021 1.017 1.006 1.001 1.017 1.005 1.001 1.000 1.000 1.001 1.000 1.000 Last 3 2.297 1.292 1.163 1.067 1.023 1.016 1.006 1.001 1.016 1.005 1.001 1.000 1.000 1.001 1.000 1.000 Last 5 2.010 1.312 1.163 1.050 1.033 1.013 1.008 1.002 1.007 1.003 1.000 1.000 1.000 1.000 x-hi,low
Similar 2.642 1.473 1.224 1.122 1.074 1.053 1.041 1.030 1.026 1.022 1.019 1.016 1.013 1.011 1.010 1.009 1.008 1.007 1.091 Previous 2.500 1.450 1.150 1.080 1.050 1.030 1.018 1.016 1.014 1.008 1.005 1.005 1.004 1.003 1.002 1.001 1.001 1.001 1.000 1.000
Selected 2.350 1.440 1.150 1.075 1.050 1.030 1.016 1.015 1.014 1.008 1.005 1.005 1.004 1.003 1.002 1.001 1.001 1.001 1.000 1.000 Cumulative 4.875 2.074 1.441 1.253 1.165 1.110 1.077 1.060 1.045 1.030 1.022 1.017 1.012 1.008 1.005 1.003 1.002 1.001 1.000 1.000 Percent 20.5% 48.2% 69.4% 79.8% 85.8% 90.1% 92.8% 94.3% 95.7% 97.1% 97.8% 98.3% 98.8% 99.2% 99.5% 99.7% 99.8% 99.9% 100.0% 100.0%
Amounts are limited (net of excess insurance).
Data was provided by RTA. Item 6I 101 28 RTA_01WC_063021.xlsx RIVERSIDE TRANSIT AGENCY Exhibit WC-2 (page 3) WORKERS' COMPENSATION Historical Limited Reported Incurred Losses ($000) and Limited Reported Incurred Loss Development I. Historical Limited Reported Incurred Losses ($000)
Claim Months of Development: Period 12 24 36 48 60 72 84 96 108 120 132 144 156 168 180 192 204 216 228 240 ------to 2001/02 2002/03 517 870 864 876 928 930 933 940 942 936 940 969 972 981 981 954 954 954 954 2003/04 377 378 458 522 632 724 741 736 736 736 734 716 731 731 716 716 716 716 2004/05 116 194 405 398 398 413 412 412 417 426 403 403 410 411 394 394 394 2005/06 244 392 528 543 523 523 523 523 523 523 546 546 523 523 523 523 2006/07 488 522 472 584 547 556 571 559 559 559 559 559 559 559 559 2007/08 341 442 545 660 701 694 701 689 720 722 692 692 692 692 2008/09 211 562 715 959 906 967 997 1,001 1,001 1,001 1,001 1,001 1,001 2009/10 159 423 627 676 741 780 822 848 864 858 993 993 2010/11 474 864 1,064 1,216 1,019 1,019 1,020 1,019 1,020 1,028 1,060 2011/12 316 491 591 596 627 635 626 634 623 612 2012/13 264 597 849 779 806 809 803 747 693 2013/14 350 710 672 657 642 640 629 629 2014/15 342 440 488 520 537 537 537 2015/16 339 352 498 536 554 712 2016/17 405 539 590 661 659 2017/18 237 368 453 565 2018/19 556 831 1,062 2019/20 498 750 2020/21 457
II. Limited Reported Incurred Loss Development
Claim Months of Development: Period 12-24 24-36 36-48 48-60 60-72 72-84 84-96 96-108 108-120 120-132 132-144 144-156 156-168 168-180 180-192 192-204 204-216 216-228 228-240 240-Ult ------to 2001/02 2002/03 1.683 0.993 1.014 1.059 1.002 1.003 1.008 1.002 0.994 1.004 1.031 1.003 1.009 1.000 0.972 1.000 1.000 1.000 2003/04 1.003 1.212 1.140 1.211 1.146 1.023 0.993 1.000 1.000 0.997 0.975 1.021 1.000 0.979 0.999 1.000 1.000 2004/05 1.672 2.088 0.983 1.000 1.038 0.998 1.000 1.012 1.022 0.946 1.000 1.017 1.002 0.959 1.000 1.000 2005/06 1.607 1.347 1.028 0.963 1.000 1.000 1.000 1.000 1.000 1.044 1.000 0.958 1.001 1.000 1.000 2006/07 1.070 0.904 1.237 0.937 1.016 1.027 0.979 1.000 1.000 1.000 1.000 0.999 1.000 1.000 2007/08 1.296 1.233 1.211 1.062 0.990 1.010 0.983 1.045 1.003 0.958 1.000 1.000 1.000 2008/09 2.664 1.272 1.341 0.945 1.067 1.031 1.004 1.000 1.000 1.000 1.000 1.000 2009/10 2.660 1.482 1.078 1.096 1.053 1.054 1.032 1.019 0.993 1.158 1.000 2010/11 1.823 1.231 1.143 0.838 1.000 1.001 0.999 1.001 1.007 1.031 2011/12 1.554 1.204 1.008 1.052 1.013 0.986 1.013 0.983 0.982 2012/13 2.261 1.422 0.918 1.035 1.004 0.993 0.930 0.928 2013/14 2.029 0.946 0.978 0.977 0.996 0.984 1.000 2014/15 1.287 1.109 1.066 1.032 1.000 1.000 2015/16 1.038 1.415 1.075 1.035 1.284 2016/17 1.331 1.094 1.121 0.996 2017/18 1.553 1.231 1.246 2018/19 1.494 1.277 2019/20 1.505 2020/21
Average All 1.640 1.262 1.099 1.016 1.043 1.008 0.995 0.999 1.000 1.015 1.001 1.000 1.002 0.988 0.993 1.000 1.000 1.000 Wtd 3 1.509 1.211 1.143 1.019 1.090 0.992 0.977 0.973 0.996 1.058 1.000 1.000 1.000 0.989 1.000 1.000 Last 3 1.517 1.201 1.147 1.021 1.094 0.992 0.981 0.971 0.994 1.063 1.000 1.000 1.000 0.986 1.000 1.000 Last 5 1.443 1.206 1.087 1.021 1.005 0.993 1.004 0.995 0.999 1.010 1.000 1.000 1.000 0.993 x-hi,low
Similar 1.554 1.182 1.080 1.046 1.029 1.019 1.013 1.011 1.011 1.007 1.006 1.005 1.003 1.002 1.001 1.001 1.001 1.000 1.022 Previous 1.650 1.250 1.095 1.035 1.030 1.020 1.005 1.005 1.003 1.002 1.001 1.001 1.001 1.001 1.000 1.000 1.000 1.000 1.000 1.000
Selected 1.550 1.250 1.110 1.035 1.030 1.020 1.005 1.005 1.003 1.002 1.001 1.001 1.001 1.001 1.000 1.000 1.000 1.000 1.000 1.000 Cumulative 2.383 1.538 1.230 1.108 1.071 1.040 1.019 1.014 1.009 1.006 1.004 1.003 1.002 1.001 1.000 1.000 1.000 1.000 1.000 1.000 Percent 42.0% 65.0% 81.3% 90.2% 93.4% 96.2% 98.1% 98.6% 99.1% 99.4% 99.6% 99.7% 99.8% 99.9% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%
Amounts are limited (net of excess insurance).
Data was provided by RTA. Item 6I 102 29 RTA_01WC_063021.xlsx RIVERSIDE TRANSIT AGENCY Exhibit WC-2 (page 4) WORKERS' COMPENSATION Historical Reported Claims and Reported Claim Development I. Historical Reported Claims
Claim Months of Development: Period 12 24 36 48 60 72 84 96 108 120 132 144 156 168 180 192 204 216 228 240 ------to 2001/02 2002/03 50 56 56 56 56 57 57 57 57 57 57 57 57 57 57 57 57 57 57 2003/04 37 39 39 39 39 39 39 39 39 39 39 39 39 39 39 39 39 39 2004/05 22 24 24 24 24 24 24 24 24 24 24 24 24 24 24 24 24 2005/06 41 43 43 43 43 43 43 43 43 43 43 43 43 43 43 43 2006/07 41 42 42 42 42 42 42 42 42 42 42 42 42 42 42 2007/08 43 44 44 44 44 44 44 44 44 44 44 44 44 44 2008/09 41 44 44 44 44 44 44 44 44 44 44 44 44 2009/10 31 36 36 36 36 36 36 36 33 36 36 36 2010/11 34 37 37 37 37 37 37 35 37 37 38 2011/12 18 21 22 22 22 22 22 22 22 22 2012/13 40 41 42 42 42 42 42 42 42 2013/14 48 49 50 50 50 50 50 51 2014/15 26 27 27 27 27 27 27 2015/16 34 38 39 39 39 39 2016/17 44 49 49 49 49 2017/18 37 38 39 39 2018/19 47 49 51 2019/20 44 46 2020/21 49
II. Reported Claim Development
Claim Months of Development: Period 12-24 24-36 36-48 48-60 60-72 72-84 84-96 96-108 108-120 120-132 132-144 144-156 156-168 168-180 180-192 192-204 204-216 216-228 228-240 240-Ult ------to 2001/02 2002/03 1.120 1.000 1.000 1.000 1.018 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 2003/04 1.054 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 2004/05 1.091 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 2005/06 1.049 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 2006/07 1.024 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 2007/08 1.023 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 2008/09 1.073 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 2009/10 1.161 1.000 1.000 1.000 1.000 1.000 1.000 0.917 1.091 1.000 1.000 2010/11 1.088 1.000 1.000 1.000 1.000 1.000 0.946 1.057 1.000 1.027 2011/12 1.167 1.048 1.000 1.000 1.000 1.000 1.000 1.000 1.000 2012/13 1.025 1.024 1.000 1.000 1.000 1.000 1.000 1.000 2013/14 1.021 1.020 1.000 1.000 1.000 1.000 1.020 2014/15 1.038 1.000 1.000 1.000 1.000 1.000 2015/16 1.118 1.026 1.000 1.000 1.000 2016/17 1.114 1.000 1.000 1.000 2017/18 1.027 1.026 1.000 2018/19 1.043 1.041 2019/20 1.045 2020/21
Average All 1.071 1.011 1.000 1.000 1.001 1.000 0.997 0.998 1.009 1.003 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 Wtd 3 1.039 1.022 1.000 1.000 1.000 1.000 1.009 1.020 1.033 1.009 1.000 1.000 1.000 1.000 1.000 1.000 Last 3 1.038 1.022 1.000 1.000 1.000 1.000 1.007 1.019 1.030 1.009 1.000 1.000 1.000 1.000 1.000 1.000 Last 5 1.067 1.018 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 x-hi,low
Similar 1.131 1.019 1.010 1.007 1.007 1.005 1.005 1.006 1.006 1.001 1.001 1.001 1.001 1.000 1.000 1.000 1.000 1.000 1.000 1.000 Previous 1.075 1.015 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000
Selected 1.055 1.025 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 Cumulative 1.081 1.025 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 Percent 92.5% 97.6% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%
Data was provided by RTA. Item 6I 103 30 RTA_01WC_063021.xlsx RIVERSIDE TRANSIT AGENCY Exhibit WC-2 (page 5) WORKERS' COMPENSATION Historical Ratio of Limited Paid Losses and Limited Reported Incurred Losses
Claim Months of Development: Period 12 24 36 48 60 72 84 96 108 120 132 144 156 168 180 192 204 216 228 240 ------to 2001/02 2002/03 43.6% 60.1% 86.6% 93.7% 94.7% 99.3% 99.5% 99.2% 99.3% 100.0% 100.0% 97.5% 98.1% 98.1% 98.1% 100.0% 100.0% 100.0% 100.0% 2003/04 40.1% 77.1% 83.8% 87.9% 79.8% 82.5% 85.2% 87.9% 89.5% 91.0% 92.2% 99.9% 99.9% 99.9% 99.9% 100.0% 100.0% 100.0% 2004/05 29.3% 55.3% 71.5% 87.3% 90.8% 90.9% 91.9% 92.7% 92.1% 91.3% 96.6% 96.6% 95.5% 95.5% 100.0% 100.0% 100.0% 2005/06 38.4% 61.7% 79.9% 95.3% 100.1% 100.1% 100.1% 100.1% 100.1% 100.1% 99.9% 99.9% 100.1% 100.0% 100.0% 100.0% 2006/07 50.9% 75.1% 90.1% 93.3% 100.1% 100.1% 97.7% 99.9% 99.9% 99.9% 99.9% 99.9% 100.0% 100.0% 100.0% 2007/08 45.9% 82.3% 87.3% 89.0% 96.6% 98.4% 98.3% 100.1% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 2008/09 57.5% 68.9% 83.1% 71.8% 95.7% 98.0% 98.8% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 2009/10 56.6% 71.9% 69.2% 83.8% 86.0% 85.3% 88.0% 86.9% 90.2% 93.6% 81.5% 81.8% 2010/11 75.4% 68.4% 76.5% 79.6% 80.4% 80.8% 81.1% 81.6% 81.6% 82.3% 80.5% 2011/12 52.1% 79.0% 72.5% 93.5% 91.7% 93.2% 95.9% 96.1% 98.2% 100.0% 2012/13 51.0% 64.9% 66.2% 78.2% 77.6% 83.2% 85.5% 92.1% 99.3% 2013/14 44.7% 57.0% 88.4% 90.8% 93.9% 94.3% 98.6% 98.6% 2014/15 42.9% 63.6% 71.5% 86.6% 90.4% 91.6% 91.6% 2015/16 39.0% 73.5% 75.7% 79.4% 80.8% 66.5% 2016/17 54.0% 73.5% 79.7% 78.7% 84.5% 2017/18 38.1% 69.1% 78.7% 79.1% 2018/19 53.2% 77.7% 78.2% 2019/20 50.6% 63.6% 2020/21 44.0%
Average All 47.8% 69.0% 78.8% 85.5% 89.5% 90.3% 93.3% 94.6% 95.5% 95.8% 94.5% 97.0% 99.1% 98.9% 99.6% 100.0% 100.0% 100.0% 100.0% Last 3 49.3% 70.1% 78.8% 79.1% 85.2% 84.2% 91.9% 95.6% 93.0% 92.0% 87.3% 93.9% 100.0% 100.0% 100.0% 100.0% 100.0% Last 5 49.3% 72.0% 77.5% 81.7% 85.2% 89.4% 91.0% 91.7% 95.9% 97.9% 93.8% 99.9% 100.0% 100.0% 100.0% x-hi,low
Implicit 48.9% 74.1% 85.4% 88.5% 91.9% 93.7% 94.6% 95.6% 96.6% 97.6% 98.2% 98.6% 99.0% 99.3% 99.5% 99.7% 99.8% 99.9% 100.0% 100.0%
Item 6I 104 31 RTA_01WC_063021.xlsx RIVERSIDE TRANSIT AGENCY Exhibit WC-3 WORKERS' COMPENSATION Developed Limited Paid Losses
Developed Limited Limited Months of Paid Percent Paid Claim Development Losses Losses Losses Period 6/30/21 6/30/21 Paid (3)/(4) (1) (2) (3) (4) (5) ------to 2001/02 240.0 $7,407,157 100.0% $7,407,157 2002/03 228.0 953,894 100.0% 953,894 2003/04 216.0 715,575 99.9% 716,291 2004/05 204.0 394,137 99.8% 394,926 2005/06 192.0 523,293 99.7% 524,865 2006/07 180.0 558,583 99.5% 561,381 2007/08 168.0 691,957 99.2% 697,510 2008/09 156.0 1,001,134 98.8% 1,013,204 2009/10 144.0 813,088 98.3% 827,005 2010/11 132.0 852,784 97.8% 871,717 2011/12 120.0 611,880 97.1% 630,468 2012/13 108.0 688,391 95.7% 719,234 2013/14 96.0 620,599 94.3% 658,131 2014/15 84.0 491,659 92.8% 529,735 2015/16 72.0 473,431 90.1% 525,399 2016/17 60.0 556,242 85.8% 648,165 2017/18 48.0 446,582 79.8% 559,411 2018/19 36.0 830,100 69.4% 1,195,800 2019/20 24.0 477,255 48.2% 990,013 2020/21 12.0 201,435 20.5% 981,956 ------Total $19,309,177 $21,406,261
(3) is from Exhibit WC-1.
(4) is from Exhibit WC-2.
Item 6I 105 32 RTA_01WC_063021.xlsx RIVERSIDE TRANSIT AGENCY Exhibit WC-4 WORKERS' COMPENSATION Developed Limited Reported Incurred Losses
Developed Limited Limited Reported Reported Months of Incurred Percent Incurred Claim Development Losses Losses Losses Period 6/30/21 6/30/21 Reported (3)/(4) (1) (2) (3) (4) (5) ------to 2001/02 240.0 $7,407,157 100.0% $7,407,157 2002/03 228.0 953,894 100.0% 953,894 2003/04 216.0 715,575 100.0% 715,575 2004/05 204.0 394,137 100.0% 394,137 2005/06 192.0 523,293 100.0% 523,293 2006/07 180.0 558,583 100.0% 558,583 2007/08 168.0 691,957 99.9% 692,649 2008/09 156.0 1,001,134 99.8% 1,003,138 2009/10 144.0 993,468 99.7% 996,452 2010/11 132.0 1,059,607 99.6% 1,063,852 2011/12 120.0 611,880 99.4% 615,560 2012/13 108.0 693,380 99.1% 699,642 2013/14 96.0 629,380 98.6% 638,240 2014/15 84.0 536,579 98.1% 546,853 2015/16 72.0 711,671 96.2% 739,804 2016/17 60.0 658,577 93.4% 705,150 2017/18 48.0 564,786 90.2% 625,891 2018/19 36.0 1,062,009 81.3% 1,306,369 2019/20 24.0 750,050 65.0% 1,153,289 2020/21 12.0 457,317 42.0% 1,089,925 ------Total $20,974,435 $22,429,453
(3) is from Exhibit WC-1.
(4) is from Exhibit WC-2.
Item 6I 106 33 RTA_01WC_063021.xlsx RIVERSIDE TRANSIT AGENCY Exhibit WC-5 WORKERS' COMPENSATION Developed Limited Case Reserves
Percent Losses Developed Reserved Limited Limited Limited Months of Percent Percent 6/30/21 Paid Case Case Claim Development Losses Losses [(4)-(3)]/ Losses Reserves Reserves Period 6/30/21 Paid Reported [100.0%-(3)] 6/30/21 6/30/21 (6)+(7)/(5) (1) (2) (3) (4) (5) (6) (7) (8) ------to 2001/02 240.0 100.0% 100.0% 100.0% $7,407,157 $0 $7,407,157 2002/03 228.0 100.0% 100.0% 100.0% 953,894 0 953,894 2003/04 216.0 99.9% 100.0% 100.0% 715,575 0 715,575 2004/05 204.0 99.8% 100.0% 100.0% 394,137 0 394,137 2005/06 192.0 99.7% 100.0% 100.0% 523,293 0 523,293 2006/07 180.0 99.5% 100.0% 100.0% 558,583 0 558,583 2007/08 168.0 99.2% 99.9% 87.4% 691,957 0 691,957 2008/09 156.0 98.8% 99.8% 83.2% 1,001,134 0 1,001,134 2009/10 144.0 98.3% 99.7% 82.2% 813,088 180,380 1,032,506 2010/11 132.0 97.8% 99.6% 81.6% 852,784 206,824 1,106,152 2011/12 120.0 97.1% 99.4% 79.7% 611,880 0 611,880 2012/13 108.0 95.7% 99.1% 79.1% 688,391 4,989 694,696 2013/14 96.0 94.3% 98.6% 75.7% 620,599 8,780 632,205 2014/15 84.0 92.8% 98.1% 73.9% 491,659 44,919 552,475 2015/16 72.0 90.1% 96.2% 61.6% 473,431 238,240 860,474 2016/17 60.0 85.8% 93.4% 53.4% 556,242 102,335 747,775 2017/18 48.0 79.8% 90.2% 51.6% 446,582 118,205 675,682 2018/19 36.0 69.4% 81.3% 38.8% 830,100 231,908 1,427,255 2019/20 24.0 48.2% 65.0% 32.5% 477,255 272,795 1,316,822 2020/21 12.0 20.5% 42.0% 27.0% 201,435 255,882 1,149,871 ------Total $19,309,177 $1,665,258 $23,053,523
(3) and (4) are from Exhibit WC-2.
(6) and (7) are from Exhibit WC-1.
Item 6I 107 34 RTA_01WC_063021.xlsx RIVERSIDE TRANSIT AGENCY Exhibit WC-6 WORKERS' COMPENSATION Preliminary Projected Ultimate Limited Losses to 2020/21
Developed Preliminary Developed Limited Developed Projected Limited Reported Limited Ultimate Claim Paid Incurred Case Limited Period Losses Losses Reserves Losses (1) (2) (3) (4) (5) ------to 2001/02 # $7,407,157 $7,407,157 $7,407,157 # $7,407,157 2002/03 # 953,894 953,894 953,894 # 953,894 2003/04 # 716,291 715,575 715,575 # 715,575 2004/05 # 394,926 394,137 394,137 # 394,137 2005/06 # 524,865 523,293 523,293 # 523,293 2006/07 # 561,381 558,583 558,583 # 558,583 2007/08 # 697,510 692,649 691,957 # 691,957 2008/09 # 1,013,204 1,003,138 1,001,134 # 1,001,134 2009/10 # 827,005 996,452 1,032,506 # 1,032,506 2010/11 # 871,717 1,063,852 1,106,152 # 1,106,152 2011/12 # 630,468 615,560 611,880 # 611,880 2012/13 9 719,234 699,642 694,696 9 694,696 2013/14 8 658,131 638,240 632,205 8 632,808 2014/15 7 529,735 546,853 552,475 7 551,350 2015/16 6 525,399 739,804 860,474 6 824,273 2016/17 5 648,165 705,150 747,775 5 730,725 2017/18 4 559,411 625,891 675,682 4 644,138 2018/19 3 1,195,800 1,306,369 1,427,255 3 1,332,610 2019/20 2 990,013 1,153,289 1,316,822 2 1,186,047 2020/21 1 981,956 1,089,925 1,149,871 1 1,113,903 ------0 ------0 ------Total 0 $21,406,261 $22,429,453 $23,053,523 0 $22,706,820 00 00 00 00 00 00 00 00
(2) is from Exhibit WC-3.
(3) is from Exhibit WC-4.
(4) is from Exhibit WC-5.
(5) is based on (2) to (4) and actuarial judgment.
Item 6I 108 35 RTA_01WC_063021.xlsx RIVERSIDE TRANSIT AGENCY Exhibit WC-7 WORKERS' COMPENSATION Bornhuetter - Ferguson Analysis
I. A-priori Loss Rate
Trended Projected Preliminary Limited Limited A-priori Projected Loss Rate Loss Rate Loss Rate Loss Rate Ultimate per $100 of Trend per $100 of per $100 of Claim Limited Payroll Payroll (2021/22 Payroll Payroll Period Losses (000) (2)/(3)/10 = 1.000) (4)X(5) (7)/(5) (1) (2) (3) (4) (5) (6) (8) ------2011/12 # $611,880 $14,482 $4.23 1.186 $5.01 $3.85 2012/13 9 694,696 15,397 4.51 1.182 5.33 3.86 2013/14 8 632,808 16,208 3.90 1.172 4.58 3.90 2014/15 7 551,350 18,075 3.05 1.142 3.48 4.00 2015/16 6 824,273 20,093 4.10 1.117 4.58 4.09 2016/17 5 730,725 21,707 3.37 1.099 3.70 4.16 2017/18 4 644,138 24,060 2.68 1.084 2.90 4.22 2018/19 3 1,332,610 25,915 5.14 1.063 5.47 4.30 2019/20 2 1,186,047 26,871 4.41 1.041 4.60 4.39 2020/21 1 1,113,903 26,007 4.28 1.020 4.37 4.48
(7) Projected 2021/22 a-priori loss rate per $100 of Payroll $4.57
II. Bornhuetter - Ferguson Analysis Based on Limited Paid Losses
B-F Projected B-F Ultimate Limited A-priori Unpaid Limited Paid Percent Loss Rate Losses Paid Claim Losses Losses per $100 of Payroll [100.0%-(3)] Losses Period 6/30/21 Paid Payroll (000) X(4)X(5)X10 (2)+(6) (1) (2) (3) (4) (5) (6) (7) ------2016/17 # $556,242 85.8% $4.16 $21,707 $127,984 $684,226 2017/18 # 446,582 79.8% 4.22 24,060 204,622 651,203 2018/19 # 830,100 69.4% 4.30 25,915 340,521 1,170,621 2019/20 # 477,255 48.2% 4.39 26,871 610,695 1,087,950 2020/21 # 201,435 20.5% 4.48 26,007 925,940 1,127,374
III. Bornhuetter - Ferguson Analysis Based on Limited Reported Incurred Losses
B-F Limited Projected B-F Ultimate Reported A-priori Unreported Limited Incurred Percent Loss Rate Losses Reported Claim Losses Losses per $100 of Payroll [100.0%-(3)] Losses Period 6/30/21 Reported Payroll (000) X(4)X(5)X10 (2)+(6) (1) (2) (3) (4) (5) (6) (7) ------2016/17 # $658,577 93.4% $4.16 $21,707 $59,602 $718,180 2017/18 # 564,786 90.2% 4.22 24,060 99,047 663,833 2018/19 # 1,062,009 81.3% 4.30 25,915 208,278 1,270,286 2019/20 # 750,050 65.0% 4.39 26,871 412,266 1,162,316 2020/21 # 457,317 42.0% 4.48 26,007 676,127 1,133,443
Section I, (2) is from Exhibit WC-6.
Section I, (3), Section II, (5) and Section III, (5) are from Exhibit WC-10.
Section I, (5) is from Exhibit WC-14.
Section I, (7) is based on Section I, (6) and actuarial judgment.
Sections II and III, (2) are from Exhibit WC-1.
Sections II and III, (3) are from Exhibit WC-2.
SectionsItem II6I and III, (4) are from Section I, (8). 109 36 RTA_01WC_063021.xlsx RIVERSIDE TRANSIT AGENCY Exhibit WC-8 WORKERS' COMPENSATION Frequency Times Severity Analysis
I. Projected Ultimate Claims
Projected Frequency Months of Reported Percent Ultimate (per $1M of Claim Development Claims Claims Claims Payroll Payroll) Period 6/30/21 6/30/21 Reported (3)/(4) (000) (5)/(6)X1,000 (1) (2) (3) (4) (5) (6) (7) ------2011/12 120.0 22 100.0% 22 $14,482 1.52 2012/13 108.0 42 100.0% 42 15,397 2.73 2013/14 96.0 51 100.0% 51 16,208 3.15 2014/15 84.0 27 100.0% 27 18,075 1.49 2015/16 72.0 39 100.0% 39 20,093 1.94 2016/17 60.0 49 100.0% 49 21,707 2.26 2017/18 48.0 39 100.0% 39 24,060 1.62 2018/19 36.0 51 100.0% 51 25,915 1.97 2019/20 24.0 46 97.6% 47 26,871 1.75 2020/21 12.0 49 92.5% 53 26,007 2.04
II. Frequency Times Severity
De-Trended Projected Preliminary Trended 2021/22 Projected Severity Average Average Frequency Ultimate Projected Average Trend Claim Claim Times Claim Limited Ultimate Severity (2021/22 Severity Severity Severity Period Losses Claims (2)/(3) = 1.000) (4)X(5) (7)/(5) (3)X(8) (1) (2) (3) (4) (5) (6) (8) (9) ------2011/12 $611,880 22 $27,813 1.594 $44,333 $17,040 $374,877 2012/13 694,696 42 16,540 1.543 25,514 17,608 739,549 2013/14 632,808 51 12,408 1.485 18,421 18,296 933,085 2014/15 551,350 27 20,420 1.404 28,669 19,346 522,354 2015/16 824,273 39 21,135 1.334 28,201 20,356 793,879 2016/17 730,725 49 14,913 1.274 18,999 21,320 1,044,680 2017/18 644,138 39 16,516 1.219 20,142 22,273 868,639 2018/19 1,332,610 51 26,130 1.162 30,361 23,376 1,192,180 2019/20 1,186,047 47 25,235 1.105 27,874 24,590 1,155,713 2020/21 1,113,903 53 21,017 1.051 22,081 25,853 1,370,224
(7) Projected 2021/22 average claim severity $27,161
Section I, (3) is from Exhibit WC-1.
Section I, (4) is from Exhibit WC-2.
Section I, (6) is from Exhibit WC-10.
Section II, (2) is from Exhibit WC-6.
Section II, (3) is from Section I, (5).
Section II, (5) is from Exhibit WC-14.
Section II, (7) is based on (6) and actuarial judgment.
Item 6I 110 37 RTA_01WC_063021.xlsx RIVERSIDE TRANSIT AGENCY Exhibit WC-9 WORKERS' COMPENSATION Projected Ultimate Limited Losses to 2020/21
Developed B-F B-F Developed Limited Developed Ultimate Ultimate Projected Limited Reported Limited Limited Limited Frequency Ultimate Claim Paid Incurred Case Paid Reported Times Limited Period Losses Losses Reserves Losses Losses Severity Losses (1) (2) (3) (4) (5) (6) (7) (8) ------to 2001/02 $7,407,157 $7,407,157 $7,407,157 $0 $0 $0 # $7,407,157 2002/03 953,894 953,894 953,894 000#953,894 2003/04 716,291 715,575 715,575 000#715,575 2004/05 394,926 394,137 394,137 000#394,137 2005/06 524,865 523,293 523,293 000#523,293 2006/07 561,381 558,583 558,583 000#558,583 2007/08 697,510 692,649 691,957 000#691,957 2008/09 1,013,204 1,003,138 1,001,134 000#1,001,134 2009/10 827,005 996,452 1,032,506 000#1,033,000 2010/11 871,717 1,063,852 1,106,152 000#1,106,000 2011/12 630,468 615,560 611,880 000#611,880 2012/13 719,234 699,642 694,696 0009695,000 2013/14 658,131 638,240 632,205 0008633,000 2014/15 529,735 546,853 552,475 0007551,000 2015/16 525,399 739,804 860,474 0006824,000 2016/17 648,165 705,150 747,775 684,226 718,180 1,044,680 5 731,000 2017/18 559,411 625,891 675,682 651,203 663,833 868,639 4 644,000 2018/19 1,195,800 1,306,369 1,427,255 1,170,621 1,270,286 1,192,180 3 1,333,000 2019/20 990,013 1,153,289 1,316,822 1,087,950 1,162,316 1,155,713 2 1,161,000 2020/21 981,956 1,089,925 1,149,871 1,127,374 1,133,443 1,370,224 1 1,147,000 0 0 0 0 0 0 0 0 0 0
(2) is from Exhibit WC-3.
(3) is from Exhibit WC-4.
(4) is from Exhibit WC-5.
(5) and (6) are from Exhibit WC-7.
(7) is from Exhibit WC-8.
(8) is based on (2) to (7) and actuarial judgment.
Item 6I 111 38 RTA_01WC_063021.xlsx RIVERSIDE TRANSIT AGENCY Exhibit WC-10 WORKERS' COMPENSATION Projected Ultimate Limited Losses for 2021/22 and Subsequent
Trended Limited Limited Projected Loss Rate Loss Rate Loss Rate Ultimate per $100 of Trend per $100 of Claim Limited Payroll Payroll (2021/22 Payroll Period Losses (000) (2)/(3)/10 = 1.000) (4)X(5) (1) (2) (3) (4) (5) (6) ------2011/12 $611,880 $14,482 $4.23 1.186 $5.01 2012/13 695,000 15,397 4.51 1.182 5.34 2013/14 633,000 16,208 3.91 1.172 4.58 2014/15 551,000 18,075 3.05 1.142 3.48 2015/16 824,000 20,093 4.10 1.117 4.58 2016/17 731,000 21,707 3.37 1.099 3.70 2017/18 644,000 24,060 2.68 1.084 2.90 2018/19 1,333,000 25,915 5.14 1.063 5.47 2019/20 1,161,000 26,871 4.32 1.041 4.50 2020/21 1,147,000 26,007 4.41 1.020 4.50 ------Total $8,330,880 $208,816 $3.99 $4.41
Present Value of Present Projected Value of Projected Projected Limited Projected Limited Ultimate Loss Rate Ultimate Loss Rate Projected Limited Present per $100 of Limited Claim per $100 of Payroll Losses Value Payroll Losses Period Payroll (000) (7)X(8)X10 Factor (7)X(10) (8)X(11)X10 (1) (7) (8) (9) (10) (11) (12) ------20 2021/22 $4.57 $28,253 $1,292,000 0.99 $4.51 $1,274,000 2022/23 4.66 29,100 1,357,000 0.99 4.60 1,338,000 2023/24 4.76 29,973 1,426,000 0.99 4.69 1,406,000 2024/25 4.85 30,873 1,498,000 0.99 4.78 1,477,000 2025/26 4.95 31,799 1,574,000 0.99 4.88 1,552,000
(2) is from Exhibit WC-9.
(3) was provided by RTA.
(5) is from Exhibit WC-14.
(7) 2021/22 is based on (6) and actuarial judgment. Other period(s) based on 2021/22 plus the trend in Exhibit WC-14.
(8) to 2022/23 was provided by RTA. Other claim periods are based on a 3% trend.
(10) is based on a 0.5% interest rate and the payout pattern in Exhibit WC-2.
Item 6I 112 39 RTA_01WC_063021.xlsx RIVERSIDE TRANSIT AGENCY Exhibit WC-11 WORKERS' COMPENSATION Estimated Outstanding Losses as of June 30, 2021
Present Value of Limited Estimated Estimated Limited Limited Reported Projected Estimated Outstanding Outstanding Paid Case Incurred Ultimate IBNR Losses Present Losses Claim Losses Reserves Losses Limited 6/30/21 6/30/21 Value 6/30/21 Period 6/30/21 6/30/21 6/30/21 Losses (5)-(4) (3)+(6) Factor (7)X(8) (1) (2) (3) (4) (5) (6) (7) (8) (9) ------to 2001/02 $7,407,157 $0 $7,407,157 $7,407,157 $0 $0 # 1.00 $0 2002/03 953,894 0 953,894 953,894 0 0 # 1.00 0 2003/04 715,575 0 715,575 715,575 0 0 # 1.00 0 2004/05 394,137 0 394,137 394,137 0 0 # 1.00 0 2005/06 523,293 0 523,293 523,293 0 0 # 0.99 0 2006/07 558,583 0 558,583 558,583 0 0 # 0.99 0 2007/08 691,957 0 691,957 691,957 0 0 # 0.99 0 2008/09 1,001,134 0 1,001,134 1,001,134 0 0 # 0.99 0 2009/10 813,088 180,380 993,468 1,033,000 39,532 219,912 # 0.99 217,377 2010/11 852,784 206,824 1,059,607 1,106,000 46,393 253,217 # 0.99 249,848 2011/12 611,880 0 611,880 611,880 0 0 # 0.99 0 2012/13 688,391 4,989 693,380 695,000 1,620 6,609 # 0.99 6,518 2013/14 620,599 8,780 629,380 633,000 3,620 12,400 # 0.99 12,218 2014/15 491,659 44,919 536,579 551,000 14,421 59,340 # 0.98 58,386 2015/16 473,431 238,240 711,671 824,000 112,329 350,569 # 0.98 344,989 2016/17 556,242 102,335 658,577 731,000 72,423 174,758 # 0.98 172,090 2017/18 446,582 118,205 564,786 644,000 79,214 197,419 # 0.99 194,473 2018/19 830,100 231,908 1,062,009 1,333,000 270,991 502,899 # 0.99 495,898 2019/20 477,255 272,795 750,050 1,161,000 410,950 683,745 # 0.99 675,447 2020/21 201,435 255,882 457,317 1,147,000 689,683 945,565 # 0.99 934,239 ------# ------Total $19,309,177 $1,665,258 $20,974,435 $22,715,611 $1,741,176 $3,406,433 # $3,361,483 # # # # # # # #
(2), (3) and (4) are net of specific self-insured retention and aggregate retention.
(5) is from Exhibit WC-9.
(8) is based on a 0.5% interest rate and the payout pattern in Exhibit WC-2. Item 6I 113 40 RTA_01WC_063021.xlsx RIVERSIDE TRANSIT AGENCY Exhibit WC-12 WORKERS' COMPENSATION Projected Losses Paid July 1, 2021 to June 30, 2022
Percent Outstanding Present Losses Value of Paid Estimated Estimated 7/1/21 to Estimated Projected Outstanding Outstanding Months of Percent Months of Percent 6/30/22 Outstanding Losses Losses Present Losses Claim Development Losses Development Losses [(5)-(3)]/ Losses Paid 6/30/22 Value 6/30/22 Period 6/30/21 Paid 6/30/22 Paid [100.0%-(3)] 6/30/21 (6)X(7) (7)-(8) Factor (9)X(10) (1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11) ------to 2001/02 240.0 100.0% 252.0 100.0% 20.0% * $0 $0 $0 # 1.00 $0 2002/03 228.0 100.0% 240.0 100.0% 20.0% * 0 0 0 # 1.00 0 2003/04 216.0 99.9% 228.0 100.0% 20.0% * 0 0 0 # 1.00 0 2004/05 204.0 99.8% 216.0 99.9% 20.0% * 0 0 0 # 1.00 0 2005/06 192.0 99.7% 204.0 99.8% 20.0% * 0 0 0 # 1.00 0 2006/07 180.0 99.5% 192.0 99.7% 20.0% * 0 0 0 # 0.99 0 2007/08 168.0 99.2% 180.0 99.5% 20.0% * 0 0 0 # 0.99 0 2008/09 156.0 98.8% 168.0 99.2% 20.0% * 0 0 0 # 0.99 0 2009/10 144.0 98.3% 156.0 98.8% 20.0% * 219,912 43,982 175,930 # 0.99 174,112 2010/11 132.0 97.8% 144.0 98.3% 20.0% * 253,217 50,643 202,574 # 0.99 200,238 2011/12 120.0 97.1% 132.0 97.8% 20.0% * 0 0 0 # 0.99 0 2012/13 108.0 95.7% 120.0 97.1% 20.0% * 6,609 1,322 5,287 # 0.99 5,213 2013/14 96.0 94.3% 108.0 95.7% 20.0% * 12,400 2,480 9,920 # 0.99 9,783 2014/15 84.0 92.8% 96.0 94.3% 20.0% * 59,340 11,868 47,472 # 0.99 46,774 2015/16 72.0 90.1% 84.0 92.8% 20.0% * 350,569 70,114 280,455 # 0.98 275,948 2016/17 60.0 85.8% 72.0 90.1% 20.0% * 174,758 34,952 139,806 # 0.98 137,581 2017/18 48.0 79.8% 60.0 85.8% 20.0% * 197,419 39,484 157,935 # 0.98 155,524 2018/19 36.0 69.4% 48.0 79.8% 20.0% * 502,899 100,580 402,319 # 0.99 396,316 2019/20 24.0 48.2% 36.0 69.4% 20.0% * 683,745 136,749 546,996 # 0.99 539,382 2020/21 12.0 20.5% 24.0 48.2% 20.0% * 945,565 189,113 756,452 # 0.99 747,271 2021/22 0.0 0.0% 12.0 20.5% 20.0% * 1,292,000 258,400 1,033,600 # 0.99 1,021,219 ------# ------Total $4,698,433 $939,687 $3,758,746 # $3,709,361 # # # # # # # # # # # #
* - Limited to a maximum of 20% per actuarial judgment.
(3) and (5) are from Exhibit WC-2.
(7) to 2020/21 is from Exhibit WC-11. The amount for 2021/22 is from Exhibit WC-10. Item 6I 114 (10) is based on a 0.5% interest rate and the payout pattern in Exhibit WC-2. 41 RTA_01WC_063021.xlsx RIVERSIDE TRANSIT AGENCY Exhibit WC-13 WORKERS' COMPENSATION Projected Losses Paid July 1, 2022 to June 30, 2023
Percent Outstanding Present Losses Value of Paid Estimated Estimated 7/1/22 to Estimated Projected Outstanding Outstanding Months of Percent Months of Percent 6/30/23 Outstanding Losses Losses Present Losses Claim Development Losses Development Losses [(5)-(3)]/ Losses Paid 6/30/23 Value 6/30/23 Period 6/30/22 Paid 6/30/23 Paid [100.0%-(3)] 6/30/22 (6)X(7) (7)-(8) Factor (9)X(10) (1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11) ------to 2001/02 252.0 100.0% 264.0 100.0% 20.0% * $0 $0 $0 # 1.00 $0 2002/03 240.0 100.0% 252.0 100.0% 20.0% * 0 0 0 # 1.00 0 2003/04 228.0 100.0% 240.0 100.0% 20.0% * 0 0 0 # 1.00 0 2004/05 216.0 99.9% 228.0 100.0% 20.0% * 0 0 0 # 1.00 0 2005/06 204.0 99.8% 216.0 99.9% 20.0% * 0 0 0 # 1.00 0 2006/07 192.0 99.7% 204.0 99.8% 20.0% * 0 0 0 # 1.00 0 2007/08 180.0 99.5% 192.0 99.7% 20.0% * 0 0 0 # 0.99 0 2008/09 168.0 99.2% 180.0 99.5% 20.0% * 0 0 0 # 0.99 0 2009/10 156.0 98.8% 168.0 99.2% 20.0% * 175,930 35,186 140,744 # 0.99 139,435 2010/11 144.0 98.3% 156.0 98.8% 20.0% * 202,574 40,515 162,059 # 0.99 160,384 2011/12 132.0 97.8% 144.0 98.3% 20.0% * 0 0 0 # 0.99 0 2012/13 120.0 97.1% 132.0 97.8% 20.0% * 5,287 1,057 4,230 # 0.99 4,174 2013/14 108.0 95.7% 120.0 97.1% 20.0% * 9,920 1,984 7,936 # 0.99 7,824 2014/15 96.0 94.3% 108.0 95.7% 20.0% * 47,472 9,494 37,978 # 0.99 37,453 2015/16 84.0 92.8% 96.0 94.3% 20.0% * 280,455 56,091 224,364 # 0.99 221,065 2016/17 72.0 90.1% 84.0 92.8% 20.0% * 139,806 27,961 111,845 # 0.98 110,048 2017/18 60.0 85.8% 72.0 90.1% 20.0% * 157,935 31,587 126,348 # 0.98 124,337 2018/19 48.0 79.8% 60.0 85.8% 20.0% * 402,319 80,464 321,855 # 0.98 316,941 2019/20 36.0 69.4% 48.0 79.8% 20.0% * 546,996 109,399 437,597 # 0.99 431,068 2020/21 24.0 48.2% 36.0 69.4% 20.0% * 756,452 151,290 605,162 # 0.99 596,738 2021/22 12.0 20.5% 24.0 48.2% 20.0% * 1,033,600 206,720 826,880 # 0.99 816,845 2022/23 0.0 0.0% 12.0 20.5% 20.0% * 1,357,000 271,400 1,085,600 # 0.99 1,072,597 ------# ------Total $5,115,746 $1,023,148 $4,092,598 # $4,038,909 # # # # # # # # # # #
* - Limited to a maximum of 20% per actuarial judgment.
(3) and (5) are from Exhibit WC-2.
(7) to 2021/22 is from Exhibit WC-12, (9). The amount for 2022/23 is from Exhibit WC-10. Item 6I 115 (10) is based on a 0.5% interest rate and the payout pattern in Exhibit WC-2. 42 RTA_01WC_063021.xlsx RIVERSIDE TRANSIT AGENCY Exhibit WC-14 WORKERS' COMPENSATION Loss Rate and Severity Trend
I. Benefit Level Changes
Cumulative Benefit Benefit Effecitive Level Level Date Change Change (1) (2) (3) ------01/01/12 0.982 0.982 01/01/13 0.967 0.950 01/01/14 1.012 0.961 01/01/15 1.001 0.962 01/01/16 1.002 0.964 01/01/17 0.992 0.956 01/01/18 0.997 0.953 01/01/19 1.001 0.954 01/01/20 1.002 0.955
II. Loss Rate and Severity Trend
Loss Rate Severity Benefit Residual Retention Trend Wage Trend Trend Trend Index (2021/22 Trend (2021/22 Claim (2021/22 (2021/22 (2021/22 = 1.000) (2021/22 = 1.000) Period = 1.000) = 1.000) = 1.000) (2)X(3)X(4) = 1.000) (5)X(6) (1) (2) (3) (4) (5) (6) (7) ------2011/12 # 0.973 1.219 1.000 1.186 1.344 1.594 2012/13 # 0.989 1.195 1.000 1.182 1.305 1.543 2013/14 # 1.000 1.172 1.000 1.172 1.267 1.485 2014/15 # 0.994 1.149 1.000 1.142 1.230 1.404 2015/16 # 0.992 1.126 1.000 1.117 1.194 1.334 2016/17 # 0.995 1.104 1.000 1.099 1.159 1.274 2017/18 # 1.001 1.082 1.000 1.084 1.126 1.219 2018/19 # 1.002 1.061 1.000 1.063 1.093 1.162 2019/20 # 1.001 1.040 1.000 1.041 1.061 1.105 2020/21 # 1.000 1.020 1.000 1.020 1.030 1.051
2021/22 # 1.000 1.000 1.000 1.000 1.000 1.000 2022/23 # 1.000 0.980 1.000 0.980 0.971 0.952 2023/24 # 1.000 0.961 1.000 0.961 0.943 0.906 2024/25 # 1.000 0.942 1.000 0.942 0.915 0.862 2025/26 # 1.000 0.924 1.000 0.924 0.888 0.821
Section I, (2) and (3) reflect data published by the NCCI.
Section II, (2) is based on Section I, (2).
Section II, (3) is based on 2% trend per actuarial judgment.
Section II, (4) is based on industry statistics and actuarial judgment.
SectionItem II, 6I(6) is based on 3% trend. 116 43 RTA_01WC_063021.xlsx RIVERSIDE TRANSIT AGENCY Exhibit WC-15 WORKERS' COMPENSATION List of Large Claims Reported Incurred Losses Greater Than $100,000
Unlimited Unlimited Unlimited Reported Specific Paid Case Incurred Claim Date of Claim Self-Insured Losses Reserves Losses Number Loss Period Retention 6/30/21 6/30/21 6/30/21 (1) (2) (3) (4) (5) (6) (7) ------RTA-93-0011 03/01/93 to 2001/02 $250,000 $122,641 $0 $122,641 RTA-93-0050 11/12/93 to 2001/02 250,000 105,967 0 105,967 RTA-95-0055 07/24/95 to 2001/02 250,000 250,596 0 250,596 RTA-95-0048 09/13/95 to 2001/02 250,000 121,739 0 121,739 RTA-96-0015 05/09/96 to 2001/02 250,000 103,238 0 103,238 RTA-96-0020 05/09/96 to 2001/02 250,000 104,404 0 104,404 RTA-96-0021 06/01/96 to 2001/02 250,000 256,850 0 256,850 RTA-97-0045 06/10/97 to 2001/02 250,000 100,672 0 100,672 RTA-97-0067 12/11/97 to 2001/02 250,000 411,993 0 411,993 RTA-97-0061 12/21/97 to 2001/02 250,000 116,329 0 116,329 RTA-98-0034 07/14/98 to 2001/02 250,000 133,357 0 133,357 RTA-99-0010 02/18/99 to 2001/02 250,000 117,982 0 117,982 RTA-00-0013 03/09/00 to 2001/02 250,000 238,274 0 238,274 RTA-00-0047 10/17/00 to 2001/02 250,000 158,974 0 158,974 RTA-01-0006 03/21/01 to 2001/02 250,000 134,140 0 134,140 RTA-01-0046 08/16/01 to 2001/02 350,000 108,314 0 108,314 RTA-01-0065 10/31/01 to 2001/02 350,000 173,438 0 173,438 RTA-02-0007 01/28/02 to 2001/02 350,000 110,339 0 110,339 RTA-02-0025 06/03/02 to 2001/02 350,000 253,792 0 253,792 RTA-02-0039 07/13/02 2002/03 400,000 171,855 0 171,855 RTA-02-0054 09/02/02 2002/03 400,000 141,656 0 141,656 RTA-03-0005 02/23/03 2002/03 400,000 136,606 0 136,606 RTA-04-0008 04/07/04 2003/04 500,000 343,770 0 343,770 RTA-04-0020 09/30/04 2004/05 750,000 199,323 0 199,323 RTA-06-0003 02/14/06 2005/06 750,000 160,983 0 160,983 RTA-06-0036 07/20/06 2006/07 750,000 156,882 0 156,882 RTA-06-0038 09/19/06 2006/07 750,000 203,374 0 203,374 RTA-07-0026 07/30/07 2007/08 750,000 107,064 0 107,064 RTA-08-0021 06/21/08 2007/08 750,000 227,685 0 227,685 RTA-09-0011 05/28/09 2008/09 750,000 152,582 0 152,582 RTA-09-0017 06/22/09 2008/09 750,000 340,523 0 340,523 RTA-10-0005 02/18/10 2009/10 750,000 170,222 123,066 293,288 RTA-10-0010 03/19/10 2009/10 750,000 294,264 57,314 351,578 RTA-10-0029 08/06/10 2010/11 750,000 207,931 0 207,931 RTA-10-0043 12/21/10 2010/11 750,000 257,908 0 257,908 RTA-11-0001 01/04/11 2010/11 750,000 138,082 192,373 330,455 RTA-11-0022 12/08/11 2011/12 750,000 241,388 0 241,388 RTA-12-0011 07/06/12 2012/13 750,000 112,174 0 112,174 RTA-13-0026 06/10/13 2012/13 750,000 206,490 0 206,490 RTA-13-0027 07/10/13 2013/14 750,000 123,884 0 123,884 RTA-14-0034 01/04/14 2013/14 750,000 135,437 0 135,437 RTA-14-0029 08/05/14 2014/15 750,000 153,682 0 153,682 RTA-14-0031 08/09/14 2014/15 750,000 125,452 0 125,452 RTA-15-0001 01/02/15 2014/15 750,000 86,144 44,919 131,063 RTA-16-0048 03/01/16 2015/16 750,000 45,257 168,862 214,118 RTA-17-0033 12/20/17 2017/18 750,000 113,894 56,163 170,057 RTA-18-0031 08/01/18 2018/19 750,000 96,332 28,981 125,313 RTA-18-0034 08/28/18 2018/19 750,000 114,917 38,834 153,751 RTA-18-0045 10/01/18 2018/19 750,000 107,511 33,303 140,814 RTA-19-0038 10/28/19 2019/20 750,000 103,018 50,750 153,768 RTA-20-0002 02/21/20 2019/20 750,000 50,804 68,109 118,912
AmountsItem are6I gross of excess insurance and net of other recoveries. 117
(1) through (7) were provided by RTA. 44 RTA_01WC_063021.xlsx RIVERSIDE TRANSIT AGENCY Exhibit WC-16 WORKERS' COMPENSATION Size of Loss Distribution
I. Reported Claim Count
Non-Zero Non-Zero Claim Claim Total Cumulative Cumulative Claim Size Prior 2016/17 2017/18 2018/19 2019/20 2020/21 (2)…(7) Total % of Total (1) (2) (3) (4) (5) (6) (7) (8) (9) (10)
0 13911111144 0.01 - 5,000 822 35 25 25 25 24 956 956 69.3% 5,000 - 10,000 7002446861,04275.5% 10,000 - 25,000 894599131291,17184.9% 25,000 - 50,000 6022635781,24990.5% 50,000 - 100,000 6573320801,32996.3% 100,000 - 250,000 3501320411,37099.3% 250,000 - 500,000 1000000101,380100.0% 500,000 - 750,000 00000001,380100.0% 750,000 - 1,000,000 00000001,380100.0% Over 1,000,000 00000001,380100.0%
Total 1,290 49 39 51 46 49 1,524 1,380
II. Total Reported Incurred Losses
Non-Zero Non-Zero Claim Claim Total Cumulative Cumulative Claim Size Prior 2016/17 2017/18 2018/19 2019/20 2020/21 (2)…(7) Total % of Total (1) (2) (3) (4) (5) (6) (7) (8) (9) (10)
0 $0$0$0$0$0$0$0 0.01 - 5,000 747,261 43,171 22,981 31,311 25,364 16,132 886,219 886,219 4.2% 5,000 - 10,000 500,833 0 17,178 27,694 27,874 38,329 611,909 1,498,128 7.1% 10,000 - 25,000 1,537,014 69,326 67,172 143,119 150,583 212,512 2,179,727 3,677,854 17.4% 25,000 - 50,000 2,093,300 55,617 74,227 230,002 124,626 190,344 2,768,116 6,445,970 30.5% 50,000 - 100,000 4,422,533 490,463 213,171 210,006 148,924 0 5,485,096 11,931,066 56.4% 100,000 - 250,000 5,259,441 0 170,057 419,877 272,680 0 6,122,055 18,053,121 85.4% 250,000 - 500,000 3,090,754000003,090,754 21,143,875 100.0% 500,000 - 750,000 000000021,143,875 100.0% 750,000 - 1,000,000 000000021,143,875 100.0% Over 1,000,000 000000021,143,875 100.0%
Total $17,651,135 $658,577 $564,786 $1,062,009 $750,050 $457,317 $21,143,875 $21,143,875
Amounts are gross of excess insurance and net of other recoveries. Item 6I 118 Data was provided by RTA. 45 RTA_01WC_063021.xlsx RIVERSIDE TRANSIT AGENCY 1825 Third Street Riverside, CA 92507
September 16, 2021
TO: BOARD OF DIRECTORS
THRU: Larry Rubio, Chief Executive Officer
FROM: Charlie Ramirez, Chief Financial Officer Albert Jimenez, Director of Risk Management
SUBJECT: Actuarial Study Results for Liability Insurance Program
Summary: The Agency currently holds various insurance policies related to general and vehicle related liability. These policies provide liability insurance coverage to the Agency in an amount up to $25 million per year. The Agency has a Self-Insured Retention (SIR) in its liability insurance claims. SIR is the portion of claim costs that must be borne by the Agency before any costs are covered by insurance. Current open claims with an incident date prior to July 1, 2020 have an SIR of $400 thousand. Current open or future claims with an incident date on or after July 1, 2020 have an SIR of $1 million for general liability and $1.25 million for vehicle related liability.
Due to the financial magnitude and uncertainty of the Agency’s SIR responsibility at any given time, the Agency commissions an annual actuarial study of the liability program. This year, the study was performed by Aon Risk Solutions (Aon). Aon utilized historical trends and statistical modeling to develop ultimate cost projections for two types of liability incidents. The first is for existing open claims that have already been filed. The second is for claims that do not yet exist, however, are for incidents that are estimated to have already occurred. These types of incidents are commonly referred to as Incurred But Not Reported (IBNR). At the conclusion of their study, Aon accumulated the ultimate cost projections for all open and IBNR claims and assigned a value attributable to the Agency’s SIR. This amount is the Agency’s Estimated Outstanding Losses. The Estimated Outstanding Losses represent the amount that the Agency must hold in reserve, as of the reporting date, to ensure the appropriate resources are set aside to fund these claims into the future.
Item 6J 119 The results of this year’s study indicate the Agency’s Estimated Outstanding Losses as of June 30, 2021 (FY21) for general and vehicle related liability totaled $1,477,101.
A comparison of the Agency’s Projected Financial Position to the prior fiscal year is shown below:
June 30, June 30, Change 2020 2021 Incr.+/(Decr.)
Assets Available $ 1,018,143 $ 1,477,101 $ 458,958
Estimated Outstanding Losses $ 1,018,143 $ 1,477,101 $ 458,958
Projected Financial Position $ - -$ $ - (Assets - Estimated Outstanding Losses)
Estimated Outstanding Losses increased $458,958 over the prior year. This was primarily attributed to an additional year of exposure and the development of two large cases from prior years. Assets Available represent the Agency resources set aside to cover the Estimated Outstanding Losses. As indicated in the table above, the Agency had adequate Assets Available to fund the Estimated Outstanding Losses as of June 30, 2021 and June 30, 2020.
The full results and report of the actuarial study performed by Aon for the Agency’s liability insurance program is attached to this report.
Fiscal Impact:
None
Committee Recommendation:
This item was discussed at the Board Administration and Operations Committee Meeting of September 1, 2021. The committee members unanimously approved and recommended this item to the full Board of Directors for their consideration.
Recommendation:
Accept the Actuarial Study Results for the Liability Insurance Program.
Item 6J 120
Riverside Transit Agency
Actuarial Study of the Self-Insured Liability Program as of June 30, 2021
August 12, 2021
17875 Von Karman Avenue, Suite 300 Irvine, CA 92614 tel: 949.608.6300Item 6J • www.aon.com 121 Aon Risk Solutions | Global Risk Consulting | Actuarial and Analytics
August 12, 2021
Riverside Transit Agency 1825 Third Street Riverside, California 92507
Attn: Mr. Albert Jimenez Director of Risk Management
Actuarial Study of the Self-Insured Liability Program as of June 30, 2021
This study has been completed for the Riverside Transit Agency for the specific objectives listed in the study. It contains the analysis and conclusions of our work.
Each section and appendix of the study is an integral part of the whole. We recommend a review of the entire study prior to reliance upon this study.
No key personnel have a relationship with the Riverside Transit Agency that may impair our objectivity.
Please call if you have any questions. Thank you for the opportunity to be of service.
Respectfully submitted,
Aon Risk Consultants, Inc.
By Tracy Fleck, ACAS, MAAA Ruqaya Alloo Senior Consultant and Actuary Risk Analyst
X:\Clients\Actuarial\R\Riverside Transit Agency 613\2021_06_30\Report\RTA_02LI_063021_081221.doc
17875 Von Karman Avenue, Suite 300 Irvine, CA 92614 tel: 949.608.6300Item 6J • www.aon.com 122 Aon Risk Solutions | Global Risk Consulting | Actuarial and Analytics
Table of Contents
I. Background ...... 1
II. Objectives ...... 2
III. Conclusions ...... 3
Appendices A Conditions and Limitations B Glossary of Actuarial Terms C Exhibits
Item 6J 123
I. Background
Prior to May 1, 2017, Riverside Transit Agency (RTA) was insured for liability under the California Transit Indemnity Pool (CalTIP) with a self-insured retention (SIR) of $25,000. From May 1, 2017 to June 30, 2020, RTA was insured for liability under various standalone policies with an SIR of $400,000. Effective July 1, 2020, the SIR increased to $1,000,000 for general liability and $1,250,000 for automobile liability claims.
Estimated outstanding losses, as well as all future projections of losses and payments contained in this report are based on the incident date and in accordance with the above SIRs and coverage levels.
The insurance program year may not run concurrent with RTA’s fiscal year. For purposes of this report, RTA’s fiscal year (July 1 to June 30) is used to mark and measure loss activity.
Data
The loss data provided for this study by RTA consisted of individual claim detail valued as of June 30, 2021. The data included claim number, line of business, date of loss, and paid, case reserves, incurred, and recovery amounts, among other fields. The line of business field was used to determine the applicable SIR for years in which the SIR varies by coverage.
The exposure data provided for this study by RTA consisted of revenue miles for 2020/21 and 2021/22. We projected the 2022/23 miles based on the 2021/22 amount and an assumed 3% annual trend. We also relied on the 2019/20 and prior years’ miles provided for our previous studies.
In conducting this analysis, we relied upon the provided data without audit or independent verification; however, we reviewed it for reasonableness and consistency. Any inaccuracies in quantitative data or qualitative representations could have a significant effect on the results of our review and analysis. Any material discrepancies discovered in the loss data by RTA or any other parties should be reported to us immediately, and if warranted, we will make appropriate amendments to the report.
COVID-19
We reviewed RTA’s claim experience during March 2020 through June 2021 to ascertain any impact of COVID-19 on its liability claims relative to its revenue miles, which decreased 22% from 2019/20 to 2020/21, possibly due to lower ridership as a result of stay-at-home orders and increased telecommuting. We did not observe any material change in the reported claim frequency. As such, we assumed no impact of COVID-19 on RTA’s liability claims relative to its exposure.
Due to the limited data currently available regarding the impact of COVID-19 on claims, the projected losses for 2019/20 and 2020/21 are subject to more uncertainty than usual.
Item 6J 124 1
II. Objectives
The specific objectives of this study are:
1. Estimate Outstanding Losses. Estimate outstanding losses (including allocated loss adjustment expenses [ALAE]) as of June 30, 2021.
The estimated outstanding losses are the cost of unpaid claims. The estimated outstanding losses include case reserves and the development of known claims and incurred but not reported (IBNR) claims. ALAE are the direct expenses for settling specific claims. The amounts are limited to the self-insured retention.
2. Project Ultimate Limited Losses. Project ultimate limited losses (including ALAE) for 2021/22 and 2022/23.
The projected ultimate limited losses are the accrual value of losses with accident dates during 2021/22 and 2022/23, regardless of report or payment date. The amounts are limited to the self-insured retention.
3. Project Losses Paid. Project losses paid during 2021/22 and 2022/23.
The projected losses paid are the claim disbursements during 2021/22 and 2022/23, regardless of accident or report date. The amounts are limited to the self-insured retention.
4. Size of Loss Distribution Analysis. Analyze the distribution of losses in various layers.
5. Affirm GASB Statement No. 10. Provide a statement affirming the conclusions of this report are consistent with Governmental Accounting Standards Board (GASB) Statement No. 10.
Item 6J 125 2
III. Conclusions
We have reached the following conclusions:
1. Estimate Outstanding Losses
The estimated outstanding losses as of June 30, 2021 are shown in Table III-1.
Table III-1 Estimated Outstanding Losses June 30, 2021
Present Value of Estimated Estimated Outstanding Outstanding Confidence Level Losses Losses (1) (2) (3) (A) Expected (55%) $1,477,101 $1,472,391 (B) 75% $1,698,666 $1,693,250
Note: (A) is from Exhibit LI-11. (B) is based on (A), a lognormal distribution, and actuarial judgment. The 75% confidence level was calculated for RTA planning purposes only. Except for this calculation, all other estimates contained within this report are at the expected (55%) level of confidence.
The estimated outstanding losses increased by $0.5 million compared to our previous estimate of $1.0 million as of June 30, 2020 to $1.5 million as of June 30, 2021. This change consists of:
• +$0.5 million for the additional year (2020/21) of exposure; • -$0.6 million for claim payments made during 2020/21; and • +$0.6 million due to the change in projected ultimate losses for claim periods 2019/20 and prior. The majority of this change was due to one claim each in 2018/19 (#RSTA-0055) and 2019/20 (#RSTA-0081) with increases in the reported limited incurred losses of $200,000 or more. A list of large claims is provided in Exhibit LI-14.
The present value of the estimated outstanding losses is the estimated outstanding losses discounted to reflect future investment earnings. It is based on a 0.5% interest rate, as provided by RTA.
The estimated outstanding losses reflect the deductible maintained by RTA.
GASB Statement No. 10 specifies that a liability for outstanding unallocated loss adjustment expenses (ULAE) needs to be established for governmental entities. ULAE
Item 6J 126 3
are primarily composed of future claims administration for open claims. They are typically 5% to 10% of the estimated outstanding losses.
2. Project Ultimate Limited Losses
The projected ultimate limited losses for 2021/22 and 2022/23 are shown in Table III-2A.
Table III-2A Projected Ultimate Limited Losses SIR: $1,250,000 Auto Liability / $1,000,000 General Liability
Full Value Present Value Projected Loss Rate Loss Rate Revenue per 1,000 Projected per 1,000 Projected Miles Revenue Ultimate Revenue Ultimate Claim Period (000) Miles Losses Miles Losses (1) (2) (3) (4) (5) (6) (A) 2021/22 4,486 $162 $726,000 $161 $720,000 (B) 2022/23 4,620 $165 $763,000 $164 $757,000
Note: (A) and (B) are from Exhibit LI-10.
The present value of the projected ultimate limited losses is based on a 0.5% interest rate, as provided by RTA.
RTA’s liability exposure on any one claim is capped at RTA’s SIR, which is reflected in the calculation of projected ultimate limited losses.
Item 6J 127 4
The projected ultimate limited losses at alternative deductibles for 2021/22 and 2022/23 are shown in Tables III-2B and III-2C.
Table III-2B Projected Ultimate Limited Losses 2021/22 Alternative Deductibles
Present Value Projected of Projected Ultimate Ultimate Limited Limited Deductible Losses Losses (1) (2) (3) (A) $500,000 $605,000 $600,000 (B) $750,000 $672,000 $667,000 (C) $1,000,000 $712,000 $706,000 (D) $1,250,000/$1,000,000 $726,000 $720,000 (E) $1,500,000 $733,000 $727,000 (F) $1,750,000 $748,000 $742,000 (G) $2,000,000 $756,000 $750,000
Note: (D) is from Table III-2A ($1.25 million for AL and $1.0 million for GL). (A) through (C) and (E) through (G) are based on (D) and actuarial judgment.
Table III-2C Projected Ultimate Limited Losses 2022/23 Alternative Deductibles
Present Value Projected of Projected Ultimate Ultimate Limited Limited Deductible Losses Losses (1) (2) (3) (A) $500,000 $636,000 $631,000 (B) $750,000 $706,000 $701,000 (C) $1,000,000 $748,000 $742,000 (D) $1,250,000/$1,000,000 $763,000 $757,000 (E) $1,500,000 $771,000 $765,000 (F) $1,750,000 $787,000 $780,000 (G) $2,000,000 $795,000 $789,000
Note: (D) is from Table III-2A ($1.25 million for AL and $1.0 million for GL). (A) through (C) and (E) through (G) are based on (D) and actuarial judgment.
Item 6J 128 5
3. Project Losses Paid
The projected losses to be paid during 2021/22 and 2022/23 are shown in Table III-3.
Table III-3 Projected Losses Paid 2021/22 and 2022/23
Item 2021/22 2022/23 (1) (2) (3) (A) Projected losses paid $1,418,016 $722,520
Note: (A) is from Exhibits LI-12 and LI-13.
The projected losses paid reflect the deductible maintained by RTA. The relatively high payments projected for 2021/22 reflect the case reserves on two large claims open as of June 30, 2021 and their anticipated payout based on RTA’s historical payment pattern. Actual payments may differ from these projections depending on the timing of payments on these or any other large claims.
Item 6J 129 6
Loss Experience Trends
Graphs III-1 and III-2 show loss experience trends for RTA’s liability claims as measured by loss rate per 1,000 revenue miles and frequency and severity, respectively.
Graph III-1 Loss Rate per 1,000 Revenue Miles
$180 $167 $162 $165 $160
$140
$120
$100 $97 $96 $80 $25K SIR $400K SIR $1.25M/$1M SIR $60 $34 $36 $40 $31 $43 $46 $20 $37 $18 $0 2011/12 2012/13 2013/14 2014/15 2015/16 2016/17 2017/18 2018/19 2019/20 2020/21 2021/22 2022/23
Historical Projected
Note: Loss rates are from Exhibit LI-10, columns (4) and (7).
Item 6J 130 7
Graph III-2 Frequency and Severity
$25,000 9.00 8.11 $21,770 8.00 7.15 $20,096 $20,000 6.28 7.00 7.65 $16,621 5.65 6.00 4.76 $15,000 4.52 5.77 4.29 5.00 4.81 $10,069 4.00 $10,000 $7,245 $7,689 3.00 AVERAGE COST PER CLAIMAVERAGEPER COST $5,696 $4,763 $4,505 $5,000 $3,853 2.00 NUMBER OF CLAIMS PER 1M NUMBERREVENUE1M CLAIMSPEROF MILES 1.00 24 34 44 55 45 33 29 32 49 21 $0 0.00 2011/12 2012/13 2013/14 2014/15 2015/16 2016/17 2017/18 2018/19 2019/20 2020/21
Severity # of Reported Claims Frequency
Note: Frequency amounts are from Exhibit LI-8, Section I, column (7). Severity amounts are based on the projected claim counts in Exhibit LI-8 and the projected ultimate losses in Exhibit LI-9.
The increased severities in 2017/18 and subsequent reflect RTA’s higher SIRs in those years.
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Graph III-3 shows the composition of the projected ultimate limited losses.
Graph III-3 Composition of Projected Ultimate Limited Losses
$1.2 $25K SIR $400K SIR $1.25M/$1M
Millions $1.0
$0.8
$0.6
$0.4
$0.2
$0.0 2002/03 2003/04 2004/05 2005/06 2006/07 2007/08 2008/09 2009/10 2010/11 2011/12 2012/13 2013/14 2014/15 2015/16 2016/17 2017/18 2018/19 2019/20 2020/21 2021/22 2022/23
Paid Losses Case Reserves IBNR Projected
Note: Amounts through 2020/21 are from Exhibit LI-11. Amounts for 2021/22 and 2022/23 are from Exhibit LI-10.
The increased losses in 2017/18 and subsequent reflect RTA’s higher SIRs in those years. The relatively high losses in 2019/20 are due to two claims (#RSTA-0072 and #RSTA-0081) with reported limited incurred losses as of June 30, 2021 at the full SIR of $400,000.
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4. Size of Loss Distribution Analysis
Graphs III-4A and III-4B show the distribution of liability losses for the last 10 years, with each dot representing one claim.
Graph III-4A Distribution of Incurred Losses – Below $100,000
Graph III-4B Distribution of Incurred Losses – Above $100,000
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Tables III-4 shows the distribution of losses by size for RTA’s liability claims.
Table III-4 Size of Loss Distribution
Total Percent of Cumulative Total Reported Percent of Cumulative Reported Total Percent of Incurred Total Percent of Claim Size Claims (2)/Total(2) Total Losses (5)/Total(5) Total (1) (2) (3) (4) (5) (6) (7) (A) $1 to $5,000 1,937 85.6% 85.6% $2,227,657 7.8% 7.8% (B) $5,000 to $10,000 114 5.0% 90.6% 821,698 2.9% 10.6% (C) $10,000 to $25,000 121 5.3% 96.0% 1,907,028 6.7% 17.3% (D) $25,000 to $50,000 48 2.1% 98.1% 1,632,027 5.7% 23.0% (E) $50,000 to $100,000 21 0.9% 99.0% 1,436,660 5.0% 28.0% (F) $100,000 to $250,000 12 0.5% 99.6% 2,067,687 7.2% 35.2% (G) $250,000 to $500,000 4 0.2% 99.7% 1,366,383 4.8% 40.0% (H) $500,000 to $750,000 3 0.1% 99.9% 1,787,693 6.2% 46.2% (I) $750,000 to $1,000,000 2 0.1% 100.0% 1,999,991 7.0% 53.2% (J) Over $1,000,000 1 0.0% 100.0% 13,417,510 46.8% 100.0% (K) Total (A) … (J) 2,263 100% $28,664,333 100%
Note: See Exhibit LI-15. Claim counts exclude claims with incurred value of $0.
For RTA's liability claims, about 91% of the non-zero claims reported are below $10,000 and represent about 11% of the incurred amounts. The remaining 9% of the claims consume about 89% of the incurred amounts.
5. Affirm GASB Statement No. 10
We affirm the conclusions of this report are consistent with GASB Statement No. 10.
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Appendix A
Conditions and Limitations
It is important to understand the conditions and limitations listed below. Each chapter and section is an integral part of the whole study. If there are questions, please contact Aon for clarification.
• Data Quality In conducting this analysis, we relied upon the provided data without audit or independent verification; however, we reviewed it for reasonableness and consistency. Any inaccuracies in quantitative data or qualitative representations could have a significant effect on the results of our review and analysis. Any material discrepancies discovered in the loss data by the organization or any other parties should be reported to us immediately, and if warranted, we will make appropriate amendments to the report.
• Economic Environment. Unless otherwise stated, we assumed the current economic conditions will continue in the foreseeable future.
• Insurance Coverage. Unless otherwise stated, we assumed no insurance coverage changes (including coverage provided by the organization to others) subsequent to the date this study was prepared. This includes coverage language, self-insured retention, limitations and similar issues.
• Insurance Solvency. Unless otherwise stated, we assumed all insurance purchased by the organization is from solvent sources payable in accordance with terms of the coverage document.
• Interest Rate. The exhibits specify the annual interest rate used.
• Methodology. In this study, different actuarial methods were applied. In some instances, the methods yield significantly disparate results. The estimates, projections and recommendations in this study reflect our judgments as to the best method or combination of methods that are most reliable and reflective of the exposure to loss.
• Reproduction. Use of this report is limited to the organization for the specific purpose described in the Introduction section. Other uses are prohibited without an executed release with Aon.
Distribution by the organization is unrestricted. The report should only be distributed in its entirety including all supporting exhibits.
• Risk and Variability. Insurance is an inherently risky enterprise. Actual losses may vary significantly from our estimates, projections and recommendations. They may emerge higher or lower.
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• Statutory and Judicial Changes. Legislatures and judiciaries may change statutes that govern indemnification. This includes benefit levels for workers compensation, immunities and limitations for liability, and other similar issues. Unless otherwise stated, we assumed no statutory changes subsequent to the date this study was prepared.
• Supplemental Data. In addition to the data provided by the organization, we supplemented our analysis with data from similar organizations and insurance industry statistics, as we deemed appropriate.
• Usage. This study has been prepared for the usage of the organization shown on the transmittal page. It was not prepared for and may not be appropriate for use by other organizations. Other organizations should obtain written permission from Aon prior to use of this study.
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Appendix B
Glossary of Actuarial Terms
Actuarial Methods (Most Common)
A major objective of an actuarial study is to statistically project ultimate losses. The following actuarial methods are the most common:
• Developed Paid Losses • Developed Reported Incurred Losses • Developed Case Reserves • Frequency Times Severity Analysis • Loss Rate Analysis
The following describes each method:
1. Developed Paid Losses. Paid losses represent the amounts actually paid to claimants (less excess insurance recoveries). As time goes on, loss payments continue until all claims are closed and there are no remaining payments expected. At this time, the ultimate losses for the claim period are known. This common process is called “paid loss development.”
Paid loss development is an extrapolation of actual dollars paid. It does not depend on case reserve estimates. A potential shortcoming of utilizing this method is that only a small fraction of total payments have been made for the most recent claim periods. Extrapolating ultimate losses based on small amounts of actual payments may be speculative. A second potential shortcoming is that payment patterns can change over time.
2. Developed Reported Incurred Losses. Reported incurred losses are paid losses plus case reserves. In most programs, total reported incurred losses underestimate the ultimate losses. Over time, as more information about a body of claims becomes known, they are adjusted either up or down until they are closed. Though many individual claims settle for less than what was estimated, these decreases are generally more than offset by increases in the cost of other claims for which new information has emerged.
The net effect is that total estimated costs are often revised upward over time. This normal process is called “reported incurred loss development.” Actuaries typically review the development patterns of the recent past to make projections of the expected future loss development and, therefore, estimations of ultimate losses.
3. Developed Case Reserves. A case reserve is an estimate of the unpaid amount established by claims adjusters for which a particular claim will ultimately be settled or adjudicated. The developed case reserves method is a hybrid of the paid loss development and reported incurred loss development methods. It relies on the historical adequacy of case reserves to predict ultimate losses.
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4. Frequency Times Severity Analysis. The frequency times severity analysis is an actuarial method that uses a preliminary projection of ultimate losses to project claims severity. The claims severity times the number of claims is a predictor of ultimate losses. The focus of the frequency times severity analysis is that ultimate losses each period are dependent on the number of claims.
5. Loss Rate Analysis. The loss rate analysis is based on the historical loss rates per exposure unit (such as payroll, vehicles or property value). The loss rates (projected ultimate losses divided by exposure units) are trended to reflect the effect of claim cost inflation and retention changes. The trended loss rates represent the rates that one would see if all of the claims had been handled in the claim cost environment that will be present in the upcoming period. The trended loss rate times the projected exposure units is a predictor of losses.
6. Bornhuetter-Ferguson Method (B-F). The B-F method is an actuarial method that weights a preliminary projection of ultimate losses with projections of ultimate losses determined by other actuarial methods (usually the developed paid losses and developed reported incurred losses methods). For less mature claim periods, the B-F method leans more heavily to the preliminary projection. It gradually converges to the projections of ultimate losses determined by the other actuarial methods as the claim periods mature.
Actuary
A specialist trained in mathematics, statistics, and finance who is responsible for rate, reserve, and dividend calculations and other statistical studies.
Allocated Loss Adjustment Expenses
Allocated loss adjustment expenses (ALAE) are the direct expenses to settle specific claims. These expenses are primarily legal expenses.
Governmental Accounting Standards Board (GASB) Statement No. 10 requires that ALAE be included in financial statements and that they be calculated by actuarial methods.
American Academy of Actuaries
A society concerned with the development of education in the field of actuarial science and with the enhancement of standards in the actuarial field. Members may use the designation MAAA (Member, American Academy of Actuaries).
Benefits
The financial reimbursement and other services provided insureds by insurers under the terms of an insurance contract. An example would be the benefits listed under a life or health insurance policy or benefits as prescribed by a workers compensation law.
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Casualty Actuarial Society
A professional society for actuaries in areas of property and casualty insurance work. This society grants the designation of Associate of the Casualty Actuarial Society (ACAS) and Fellow of the Casualty Actuarial Society (FCAS).
Claim
Demand by an individual or entity to recover for a loss.
Claims Made
A policy written on this basis covers only those claims that are made during the policy period. Coverage for prior acts is provided back to what is known as the retroactive date, which is the effective date of the original claims made policy with the same insurer.
Composite Rate
A single rate with a single basis of premium (e.g., payroll or sales). For this single rate the insured is covered for a variety of hazards, such as premises and operations, completed operations, products liability, and automobile. Its primary value is to compute premium simply.
Confidence Level
A confidence level is the statistical certainty that an actuary believes funding will be sufficient. For example, an 80% confidence level means that the actuary believes funding will be sufficient in eight years out of ten.
Confidence levels are determined based on mathematical models. Coverages that are low frequency and high severity (such as excess liability) are subject to greater risk than coverages that are high frequency and low severity (such as automobile physical damage). Therefore, they need a greater margin to attain a given confidence level.
Coverage
The scope of the protection provided under a contract of insurance.
Credibility
Credibility is the belief that the sample data is an accurate reflection of the larger population. Credibility is highest when the sample data is large and the standard deviation (discussed later) of the larger population is low.
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Dates
There are at least three milestone dates in a claim. They are the date of injury or accident, the date of report and the date of closure. It is best if each of these dates is recorded. Some organizations may also keep the date a claim becomes a lawsuit, as opposed to a demand. Aon recommends this additional level of detail, especially if the data is to be used for litigation management.
Deductible
The portion of an insured loss to be borne by the insured before they are entitled to recovery from the insurer. Deductibles may be expressed as a dollar amount, percentage or waiting period.
Disability
A condition that curtails a person’s ability to carry on his normal pursuits. A disability may be partial or total, and temporary or permanent.
Dividend (Policyholder)
The return of part of the premium paid for a policy issued on a participating basis by either a mutual or a stock insurer.
Estimated Outstanding Losses
Estimated outstanding losses are the cost of claims that have occurred but have not yet been paid. They typically include indemnification and allocated loss adjustment expenses (ALAE), but not unallocated loss adjustment expenses (ULAE).
Estimated outstanding losses are calculated as projected ultimate losses less paid losses. Alternatively, they are the sum of case reserves and incurred but not reported (IBNR) claims.
Estimated outstanding losses are usually the largest single item listed as a liability on the balance sheet of a public entity’s financial statement. GASB Statement No. 10 requires they be calculated by actuarial methods. Other common names for estimated outstanding losses are outstanding claims liabilities and unpaid claims.
Experience Rating
A method of adjusting the premium for a risk based on past loss experience for that risk compared to loss experience for an average risk.
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Exposure Data
Exposure data refers to the activities of the organization. For example, payroll is the most common exposure measure for workers compensation. Aon suggests collecting exposure data with the following characteristics:
➢ Readily Available. The exposure data should be easily obtained. It is best if it is a byproduct of other activities, although this is not always possible. If getting data is arduous, it may discourage collection.
➢ Vary With Losses. The exposure data should correlate directly with losses. The ideal situation is where exposure and expected losses move in tandem. The exposure base needs to be fitting to the coverage. For example, the number of employees may vary with property losses (more employees = more office space = more losses), but property value is a clearly superior exposure base for property losses.
Generally Accepted Accounting Principles (GAAP)
These principles are intended to produce financial results (in the insurance industry) consistent with those of other industries and to assure consistency in financial reporting.
Incurred But Not Reported (IBNR)
IBNR is really comprised of two distinct items. These are the development of known case reserves (incurred but not enough reported [IBNER] and incurred but not yet reported [IBNYR]).
IBNER are the actuary’s estimate of the inadequacy of case reserves. Most claims settle at amounts close to what is set by the claims administrator. Some claims close favorably and some emerge as more expensive. On balance, case reserves tend to be too low (especially for recent years). IBNER is the actuary’s estimate of the amount total case reserves will rise upon closure.
IBNYR refers to those claims that have occurred, but have not yet been reported. A classic example is medical malpractice claim reported several years after the medical procedure was performed.
Insurance Services Office (ISO)
An organization of the property and casualty insurance business designed to gather statistics, promulgate rates, and develop policy forms.
Investment Income
The return received by entities from their investment portfolios, including interest, dividends and realized capital gains on stocks. Realized capital gains means the profit realized on
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assets that have actually been sold for more than their purchase price.
Limited
Most programs purchase excess insurance for catastrophic claims. For example, they may purchase coverage for claims above a $500,000 per occurrence self-insured retention. “Limited” refers to an estimate or projection being limited to the self-insured retention. In contrast, “unlimited” means a loss projection not limited to the self-insured retention.
Other common names for limited are net of excess insurance or capped losses.
Loss Development
The difference between the amount of losses initially estimated by the insurer and the amount reported in an evaluation on a later date. Loss development is typically measured for paid losses, reported incurred losses and claim counts.
Manual Rates
Usually, the published rate for some unit of insurance. An example is in the workers compensation manual, where the rates shown apply to each $100 of the payroll of the insured, $100 being the “unit.”
National Council on Compensation Insurance (NCCI)
An association of workers compensation insurance companies whose main functions are collecting statistics and calculating rates, establishing policy wording, developing experience and retrospective rating plans, and serving as the filing organization for member companies.
Net
Many pooling programs assign deductibles to members. For example, each member may have a $5,000 per claim deductible. “Net” refers to a loss estimate or projection that excludes amounts below member deductibles.
Occurrence
An event that results in an insured loss. In some lines of insurance, such as general liability, it is distinguished from accident in that the loss does not have to be sudden and fortuitous and can result from continuous or repeated exposure that results in bodily injury or property damage neither expected nor intended by the insured.
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Pool
An organization of entities through which particular types of risks are written with the premiums, losses, and expenses shared in agreed amounts among the members belonging to the organization.
Premium
The price of insurance protection for a specified risk for a specified period of time.
Present Value
The amount of money that future amounts receivable are currently worth. For example, a Life Insurance policy may provide for payments to be made monthly for ten years. The present value of that money would be less than the total amount of the regular periodic payments for 10 years because of the amount of interest that a present lump sum could earn during the term than the payments otherwise would have been made.
Probability
The probability is the likelihood of an event. It is a measure of how likely a value or event is to occur. It can be measured from data by calculating the number of occurrences of the value or event divided by the total number of occurrences. This calculation can be converted to a percentage. For example, tossing a coin has a 50% probability of heads or tails.
Projected Losses Paid
Projected losses paid are the projected claims disbursements in a period, regardless of when the claim occurred. They typically include indemnification and ALAE, but not unallocated loss adjustment expenses (ULAE).
“Projected losses paid” is a cash-flow analysis that can be used in making investment decisions.
Projected Ultimate Losses
Projected ultimate losses are the accrual value of claims. They are the total amount that is expected to be paid in a particular claim period after all claims are closed. Projected ultimate losses are the total loss costs for a particular period. They typically include indemnification and ALAE, but not ULAE.
Other common names for projected ultimate losses are expected losses, ultimate losses and total losses.
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Rate
The cost of a given unit of insurance. For example, in life insurance, it is the price of $1,000 of the face amount. In property insurance, it is the rate per $100 of value to be insured. The premium is the rate multiplied by the number of units of insurance purchased.
Retrospective Rating
A method for which the final premium is not determined until the end of the coverage period, and is based on the insured’s own loss experience for that same period. It is usually subject to a maximum and minimum premium. A plan of this type can be used in various types of insurance, especially workers compensation and liability, and is usually elected by only very large insureds.
Salvage
Property taken over by an entity to reduce its loss. Automobile physical damage losses can be reduced by the sale of recovered vehicles.
Schedule Rating
The application of debits or credits within established ranges for various characteristics of a risk according to an established schedule of items. Under liability and automobile insurance, the schedule rating plan allows credits and debits for various good or bad features of a particular commercial risk. An example in automobile schedule rating would be allowing credits for driver training classes or fleet maintenance programs.
Self-Insurance Retention (SIR)
That portion of a risk or potential loss assumed by an insured. It is often in the form of a per occurrence deductible.
Society of Actuaries (SOA)
A professional society for actuaries in areas of pensions, and life and health insurance work. The SOA grants the designation Associate of the Society of Actuaries (ASA) and Fellow of the Society of Actuaries (FSA).
Standard Premium
Most often used in connection with retrospective rating for Workers Compensation and General Liability Insurance. It is the premium of which the basic premium is a percentage and is developed by applying the regular rates to an insured’s payroll.
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State Fund
A fund set up by a state government to finance a mandatory insurance system, such as Workers Compensation or non-occupational disability benefits. Such a fund may be monopolistic, i.e., purchasers of the type of insurance required must place it in the state fund; or it may be competitive, i.e., an alternative to private insurance if the purchaser desires to use it.
Statutory Accounting Principles (SAP)
Those principles required by statute that must be followed by an insurance company or other similar entity when submitting its financial statement to the state insurance department. Such principles differ from (GAAP) in some important respects. For one thing SAP requires that expenses must be recorded immediately and cannot be deferred to track with premiums as they are earned and taken into revenue.
Unallocated Loss Adjustment Expenses
Unallocated loss adjustment expenses (ULAE) are the indirect expenses to settle claims. These expenses are primarily administration and claims handling expenses.
GASB Statement No. 10 requires that ULAE be included in financial statements and that they be calculated by actuarial methods.
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Appendix C
Exhibits
The attached exhibits detail our analysis.
Item 6J 146 23 RIVERSIDE TRANSIT AGENCY Exhibit LI-1 (page 1) LIABILITY Data Summary as of June 30, 2021 Losses Limited to Self-Insured Retention
Limited Limited Limited Reported Specific Months of Reported Open Paid Case Incurred Claim Self-Insured Aggregate Development Revenue Miles Claims Claims Losses Reserves Losses Period Retention* Retention 6/30/21 (000) 6/30/21 6/30/21 6/30/21 6/30/21 6/30/21 (1) (2) (3) (4) (5) (6) (7) (8) (9) (10) ------to 2001/02 $25,000 None 240.0 Not Provided 1,339 0 $3,308,352 $0 $3,308,352 2002/03 25,000 None 228.0 Not Provided 211 0 379,472 0 379,472 2003/04 25,000 None 216.0 Not Provided 93 0 252,207 0 252,207 2004/05 25,000 None 204.0 Not Provided 46 0 170,943 0 170,943 2005/06 25,000 None 192.0 Not Provided 59 0 262,902 0 262,902 2006/07 25,000 None 180.0 5,897 62 0 222,096 0 222,096 2007/08 25,000 None 168.0 6,198 56 0 245,271 0 245,271 2008/09 25,000 None 156.0 6,490 25 0 98,053 0 98,053 2009/10 25,000 None 144.0 5,972 34 0 195,899 0 195,899 2010/11 25,000 None 132.0 5,424 42 0 217,584 0 217,584 2011/12 25,000 None 120.0 5,589 24 0 173,881 0 173,881 2012/13 25,000 None 108.0 6,015 34 0 261,441 0 261,441 2013/14 25,000 None 96.0 6,157 44 0 209,576 0 209,576 2014/15 25,000 None 84.0 6,782 55 0 247,758 0 247,758 2015/16 25,000 None 72.0 7,162 45 0 256,311 0 256,311 2016/17 400,000 None 60.0 6,934 33 0 127,143 0 127,143 2017/18 400,000 None 48.0 6,414 29 1 284,929 5,984 290,913 2018/19 400,000 None 36.0 6,648 32 3 182,978 418,259 601,237 2019/20 400,000 None 24.0 6,403 49 10 532,120 486,015 1,018,135 2020/21 1,250,000 None 12.0 5,027 21 14 6,672 91,069 97,741 ------Total 2,333 28 $7,635,584 $1,001,327 $8,636,911
+ based on the data provided and the following risk-adjustment factors to reflect the impact of COVID-19: Revenue Mile Risk-Adjustment Risk-Adjusted Claim Period Provided Factor Revenue Mile 2019/20 6,403,393 1.00 6,403,393 2020/21 5,026,590 1.00 5,026,590
* The specific self-insured retention changes are as follows: Retention Effective Date Auto Liability Liability ------07/01/87 $25,000 $25,000 05/01/17 400,000 400,000 07/01/20 1,250,000 1,000,000
(8), (9) and (10) are net of the specific self-insured retention and other recoveries. Data was providedItem by6J RTA. 147 24 RTA_02LI_063021.xlsx RIVERSIDE TRANSIT AGENCY Exhibit LI-1 (page 2) LIABILITY Data Summary as of June 30, 2021 Net Unlimited Losses
Net Unlimited Net Unlimited Net Unlimited Reported Specific Months of Reported Open Paid Case Incurred Claim Self-Insured Aggregate Development Revenue Miles Claims Claims Losses Reserves Losses Period Retention Retention 6/30/21 (000) 6/30/21 6/30/21 6/30/21 6/30/21 6/30/21 (1) (2) (3) (4) (5) (6) (7) (8) (9) (10) ------to 2001/02 Unlimited None 240.0 Not Provided 1,339 0 $4,782,230 $0 $4,782,230 2002/03 Unlimited None 228.0 Not Provided 211 0 985,896 0 985,896 2003/04 Unlimited None 216.0 Not Provided 93 0 349,166 0 349,166 2004/05 Unlimited None 204.0 Not Provided 46 0 173,732 0 173,732 2005/06 Unlimited None 192.0 Not Provided 59 0 481,864 0 481,864 2006/07 Unlimited None 180.0 5,897 62 0 259,001 0 259,001 2007/08 Unlimited None 168.0 6,198 56 0 305,137 0 305,137 2008/09 Unlimited None 156.0 6,490 25 0 232,660 0 232,660 2009/10 Unlimited None 144.0 5,972 34 0 470,596 0 470,596 2010/11 Unlimited None 132.0 5,424 42 0 287,603 0 287,603 2011/12 Unlimited None 120.0 5,589 24 0 1,215,008 0 1,215,008 2012/13 Unlimited None 108.0 6,015 34 0 650,902 0 650,902 2013/14 Unlimited None 96.0 6,157 44 0 1,858,357 0 1,858,357 2014/15 Unlimited None 84.0 6,782 55 0 368,286 0 368,286 2015/16 Unlimited None 72.0 7,162 45 0 667,460 0 667,460 2016/17 Unlimited None 60.0 6,934 33 0 143,454 0 143,454 2017/18 Unlimited None 48.0 6,414 29 1 284,929 5,984 290,913 2018/19 Unlimited None 36.0 6,648 32 3 182,978 498,259 681,237 2019/20 Unlimited None 24.0 6,403 49 10 2,632,120 11,730,971 14,363,091 2020/21 Unlimited None 12.0 5,027 21 14 6,672 91,069 97,741 ------Total 2,333 28 $16,338,050 $12,326,283 $28,664,333
(8), (9) and (10) are gross of the specific self-insured retention and net of other recoveries. Data was providedItem by6J RTA. 148 25 RTA_02LI_063021.xlsx RIVERSIDE TRANSIT AGENCY Exhibit LI-1 (page 3) LIABILITY Data Summary as of June 30, 2021 Gross Unlimited Losses
Gross Unlimited Gross Unlimited Gross Unlimited Reported Specific Months of Reported Open Paid Case Incurred Claim Self-Insured Aggregate Development Revenue Miles Claims Claims Losses Reserves Losses Period Retention Retention 6/30/21 (000) 6/30/21 6/30/21 6/30/21 6/30/21 6/30/21 (1) (2) (3) (4) (5) (6) (7) (8) (9) (10) ------to 2001/02 Unlimited None 240.0 Not Provided 1,339 0 $4,782,230 $0 $4,782,230 2002/03 Unlimited None 228.0 Not Provided 211 0 1,239,534 0 1,239,534 2003/04 Unlimited None 216.0 Not Provided 93 0 349,166 0 349,166 2004/05 Unlimited None 204.0 Not Provided 46 0 173,732 0 173,732 2005/06 Unlimited None 192.0 Not Provided 59 0 488,640 0 488,640 2006/07 Unlimited None 180.0 5,897 62 0 259,001 0 259,001 2007/08 Unlimited None 168.0 6,198 56 0 307,975 0 307,975 2008/09 Unlimited None 156.0 6,490 25 0 232,660 0 232,660 2009/10 Unlimited None 144.0 5,972 34 0 470,596 0 470,596 2010/11 Unlimited None 132.0 5,424 42 0 287,603 0 287,603 2011/12 Unlimited None 120.0 5,589 24 0 2,624,430 0 2,624,430 2012/13 Unlimited None 108.0 6,015 34 0 650,902 0 650,902 2013/14 Unlimited None 96.0 6,157 44 0 2,559,430 0 2,559,430 2014/15 Unlimited None 84.0 6,782 55 0 368,286 0 368,286 2015/16 Unlimited None 72.0 7,162 45 0 667,460 0 667,460 2016/17 Unlimited None 60.0 6,934 33 0 143,454 0 143,454 2017/18 Unlimited None 48.0 6,414 29 1 355,513 5,984 361,497 2018/19 Unlimited None 36.0 6,648 32 3 182,978 498,259 681,237 2019/20 Unlimited None 24.0 6,403 49 10 2,632,120 11,730,971 14,363,091 2020/21 Unlimited None 12.0 5,027 21 14 6,672 91,069 97,741 ------Total 2,333 28 $18,782,382 $12,326,283 $31,108,665
(8), (9) and (10) are gross of the specific self-insured retention and other recoveries.
Data was provided by RTA. Item 6J 149 26 RTA_02LI_063021.xlsx RIVERSIDE TRANSIT AGENCY Exhibit LI-2 (page 1) LIABILITY Summary of Percent Losses Paid, Losses Reported and Claims Reported
Percent Percent Percent Percent Percent Percent Months of Losses Losses Claims Months of Losses Losses Claims Development Paid Reported Reported Development Paid Reported Reported (1) (2) (3) (4) (5) (6) (7) (8) ------360.0 # 100.0% # 100.0% # 100.0% 360.0 100.0% 100.0% 100.0% 348.0 # 100.0% # 100.0% # 100.0% 348.0 100.0% 100.0% 100.0% 336.0 # 100.0% # 100.0% # 100.0% 336.0 100.0% 100.0% 100.0% 324.0 # 100.0% # 100.0% # 100.0% 324.0 100.0% 100.0% 100.0% 312.0 # 100.0% # 100.0% # 100.0% 312.0 100.0% 100.0% 100.0% 300.0 # 100.0% # 100.0% # 100.0% 300.0 100.0% 100.0% 100.0% 288.0 # 100.0% # 100.0% # 100.0% 288.0 100.0% 100.0% 100.0% 276.0 # 100.0% # 100.0% # 100.0% 276.0 100.0% 100.0% 100.0% 264.0 # 100.0% # 100.0% # 100.0% 264.0 100.0% 100.0% 100.0% 252.0 # 100.0% # 100.0% # 100.0% 252.0 100.0% 100.0% 100.0% 240.0 # 100.0% # 100.0% # 100.0% 240.0 100.0% 100.0% 100.0% 228.0 # 100.0% # 100.0% # 100.0% 228.0 100.0% 100.0% 100.0% 216.0 # 100.0% # 100.0% # 100.0% 216.0 100.0% 100.0% 100.0% 204.0 # 100.0% # 100.0% # 100.0% 204.0 100.0% 100.0% 100.0% 192.0 # 100.0% # 100.0% # 100.0% 192.0 100.0% 100.0% 100.0% 180.0 # 100.0% # 100.0% # 100.0% 180.0 100.0% 100.0% 100.0% 168.0 # 100.0% # 100.0% # 100.0% 168.0 100.0% 100.0% 100.0% 156.0 # 100.0% # 100.0% # 100.0% 156.0 100.0% 100.0% 100.0% 144.0 # 100.0% # 100.0% # 100.0% 144.0 100.0% 100.0% 100.0% 132.0 # 100.0% # 100.0% # 100.0% 132.0 100.0% 100.0% 100.0% 120.0 # 100.0% # 100.0% # 100.0% 120.0 100.0% 100.0% 100.0% 108.0 # 100.0% # 100.0% # 100.0% 108.0 100.0% 100.0% 100.0% 96.0 # 100.0% # 100.0% # 100.0% 96.0 100.0% 100.0% 100.0% 84.0 # 100.0% # 100.0% # 100.0% 84.0 100.0% 100.0% 100.0% 72.0 # 100.0% # 100.0% # 100.0% 72.0 100.0% 100.0% 100.0% 60.0 # 100.0% # 100.0% # 100.0% 60.0 100.0% 100.0% 100.0% 48.0 # 100.0% # 100.0% # 100.0% 48.0 100.0% 100.0% 100.0% 36.0 # 98.0% # 99.5% # 99.8% 36.0 98.0% 99.5% 99.8% 24.0 # 72.6% # 98.5% # 99.3% 24.0 72.6% 98.5% 99.3% 12.0 19.4% 43.8% 73.6% 12.0 19.4% 43.8% 73.6%
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0% 2402282162041921801681561441321201089684726048362412 Month of Development
Percent Percent Percent Losses Losses Claims Paid Reported Reported
(2) is from Exhibit LI-2 (page 2).
(3) is from Exhibit LI-2 (page 3).
(4) is from Exhibit LI-2 (page 4).
Item 6J 150 27 RTA_02LI_063021.xlsx RIVERSIDE TRANSIT AGENCY Exhibit LI-2 (page 2) LIABILITY Historical Limited Paid Losses ($000) and Limited Paid Loss Development I. Historical Limited Paid Losses ($000)
Claim Months of Development: Period 12 24 36 48 60 72 84 96 108 120 132 144 156 168 180 192 204 216 228 240 ------to 2001/02 2002/03 377 377 377 377 377 377 377 379 379 379 2003/04 252 252 252 252 252 252 252 252 252 252 2004/05 171 171 171 171 171 171 171 171 171 171 2005/06 263 263 263 263 263 263 263 263 263 263 2006/07 222 222 222 222 222 222 222 222 222 222 2007/08 245 245 245 245 245 245 245 245 245 245 2008/09 98 98 98 98 98 98 98 98 98 98 2009/10 188 196 196 196 196 196 196 196 196 196 2010/11 188 218 218 218 218 218 218 218 218 218 2011/12 53 151 174 174 174 174 174 174 174 174 2012/13 108 230 261 261 261 261 261 261 261 2013/14 122 170 207 210 210 210 210 210 2014/15 72 207 247 248 248 248 248 2015/16 76 210 256 256 256 256 2016/17 42 125 127 127 127 2017/18 26 163 238 285 2018/19 33 125 183 2019/20 33 532 2020/21 7
II. Limited Paid Loss Development
Claim Months of Development: Period 12-24 24-36 36-48 48-60 60-72 72-84 84-96 96-108 108-120 120-132 132-144 144-156 156-168 168-180 180-192 192-204 204-216 216-228 228-240 240-Ult ------to 2001/02 2002/03 1.000 1.000 1.000 1.000 1.000 1.000 1.008 1.000 1.000 2003/04 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 2004/05 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 2005/06 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 2006/07 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 2007/08 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 2008/09 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 2009/10 1.042 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 2010/11 1.156 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 2011/12 2.880 1.148 1.000 1.000 1.000 1.000 1.000 1.000 1.000 2012/13 2.130 1.134 1.003 1.000 1.000 1.000 1.000 1.000 2013/14 1.385 1.220 1.013 1.000 1.000 1.000 1.000 2014/15 2.868 1.193 1.002 1.000 1.000 1.000 2015/16 2.753 1.222 1.000 1.000 1.000 2016/17 3.000 1.014 1.000 1.000 2017/18 6.209 1.459 1.195 2018/19 3.731 1.467 2019/20 16.215 2020/21
Average All 4.575 1.224 1.028 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.003 1.000 1.000 Wtd 3 8.861 1.326 1.075 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.004 Last 3 8.718 1.313 1.065 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.003 Last 5 4.313 1.291 1.005 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 x-hi,low
Similar 2.750 1.750 1.450 1.245 1.135 1.080 1.060 1.033 1.025 1.017 1.013 1.010 1.007 1.006 1.004 1.003 1.002 1.002 1.005 Previous 3.250 1.220 1.020 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000
Selected 3.750 1.350 1.020 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 Cumulative 5.164 1.377 1.020 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 Percent 19.4% 72.6% 98.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%
Amounts are limited (net of excess insurance).
Data was provided by RTA. Item 6J 151 28 RTA_02LI_063021.xlsx RIVERSIDE TRANSIT AGENCY Exhibit LI-2 (page 3) LIABILITY Historical Limited Reported Incurred Losses ($000) and Limited Reported Incurred Loss Development I. Historical Limited Reported Incurred Losses ($000)
Claim Months of Development: Period 12 24 36 48 60 72 84 96 108 120 132 144 156 168 180 192 204 216 228 240 ------to 2001/02 2002/03 379 379 379 379 379 379 377 379 379 379 2003/04 252 252 252 252 252 252 252 252 252 252 2004/05 171 171 171 171 171 171 171 171 171 171 2005/06 263 263 263 263 263 263 263 263 263 263 2006/07 222 222 222 222 222 222 222 222 222 222 2007/08 245 245 245 245 245 245 245 245 245 245 2008/09 98 98 98 98 98 98 98 98 98 98 2009/10 198 196 196 196 196 196 196 196 196 196 2010/11 218 218 218 218 218 218 218 218 218 218 2011/12 128 242 174 174 174 174 174 174 174 174 2012/13 263 273 261 261 261 261 261 261 261 2013/14 272 208 207 210 210 210 210 210 2014/15 275 266 258 248 248 248 248 2015/16 294 257 256 256 256 256 2016/17 131 125 127 127 127 2017/18 118 353 280 291 2018/19 122 238 601 2019/20 668 1,018 2020/21 98
II. Limited Reported Incurred Loss Development
Claim Months of Development: Period 12-24 24-36 36-48 48-60 60-72 72-84 84-96 96-108 108-120 120-132 132-144 144-156 156-168 168-180 180-192 192-204 204-216 216-228 228-240 240-Ult ------to 2001/02 2002/03 1.000 1.000 1.000 1.000 1.000 0.994 1.008 1.000 1.000 2003/04 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 2004/05 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 2005/06 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 2006/07 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 2007/08 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 2008/09 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 2009/10 0.991 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 2010/11 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 2011/12 1.880 0.720 1.000 1.000 1.000 1.000 1.000 1.000 1.000 2012/13 1.038 0.954 1.003 1.000 1.000 1.000 1.000 1.000 2013/14 0.763 0.996 1.013 1.000 1.000 1.000 1.000 2014/15 0.968 0.970 0.960 1.000 1.000 1.000 2015/16 0.872 0.998 1.000 1.000 1.000 2016/17 0.958 1.014 1.000 1.000 2017/18 2.996 0.794 1.039 2018/19 1.954 2.527 2019/20 1.524 2020/21
Average All 1.439 1.108 1.001 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 0.999 1.003 1.000 1.000 Wtd 3 1.772 1.408 1.017 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.004 Last 3 2.158 1.445 1.013 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.003 Last 5 1.479 0.994 1.004 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 x-hi,low
Similar 1.950 1.400 1.240 1.125 1.070 1.045 1.030 1.015 1.007 1.009 1.007 1.005 1.004 1.003 1.002 1.002 1.001 1.001 1.003 Previous 2.250 1.010 1.005 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000
Selected 2.250 1.010 1.005 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 Cumulative 2.284 1.015 1.005 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 Percent 43.8% 98.5% 99.5% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%
Amounts are limited (net of excess insurance).
Data was provided by RTA. Item 6J 152 29 RTA_02LI_063021.xlsx RIVERSIDE TRANSIT AGENCY Exhibit LI-2 (page 4) LIABILITY Historical Reported Claims and Reported Claim Development I. Historical Reported Claims
Claim Months of Development: Period 12 24 36 48 60 72 84 96 108 120 132 144 156 168 180 192 204 216 228 240 ------to 2001/02 2002/03 211 211 211 211 211 211 211 211 211 211 2003/04 93 93 93 93 93 93 93 94 94 93 2004/05 46 46 46 46 46 46 46 46 46 46 2005/06 59 59 59 59 59 59 59 59 59 59 2006/07 62 62 62 62 62 62 62 62 62 62 2007/08 56 56 56 56 56 56 56 56 56 56 2008/09 25 25 25 25 25 25 25 25 25 25 2009/10 34 34 34 34 34 34 34 34 34 34 2010/11 42 42 42 42 42 42 42 42 42 42 2011/12 20 23 23 23 24 24 24 24 24 24 2012/13 24 33 33 34 34 34 34 34 34 2013/14 34 42 43 44 44 44 44 44 2014/15 49 55 55 55 55 55 55 2015/16 36 45 45 45 45 45 2016/17 25 34 33 33 33 2017/18 20 29 29 29 2018/19 22 32 32 2019/20 42 49 2020/21 21
II. Reported Claim Development
Claim Months of Development: Period 12-24 24-36 36-48 48-60 60-72 72-84 84-96 96-108 108-120 120-132 132-144 144-156 156-168 168-180 180-192 192-204 204-216 216-228 228-240 240-Ult ------to 2001/02 2002/03 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 2003/04 1.000 1.000 1.000 1.000 1.000 1.000 1.011 1.000 0.989 2004/05 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 2005/06 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 2006/07 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 2007/08 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 2008/09 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 2009/10 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 2010/11 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 2011/12 1.150 1.000 1.000 1.043 1.000 1.000 1.000 1.000 1.000 2012/13 1.375 1.000 1.030 1.000 1.000 1.000 1.000 1.000 2013/14 1.235 1.024 1.023 1.000 1.000 1.000 1.000 2014/15 1.122 1.000 1.000 1.000 1.000 1.000 2015/16 1.250 1.000 1.000 1.000 1.000 2016/17 1.360 0.971 1.000 1.000 2017/18 1.450 1.000 1.000 2018/19 1.455 1.000 2019/20 1.167 2020/21
Average All 1.285 0.999 1.006 1.005 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.003 1.000 0.995 1.000 Wtd 3 1.310 0.989 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.005 1.000 Last 3 1.357 0.990 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.004 1.000 Last 5 1.353 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 x-hi,low
Similar 1.219 1.047 1.026 1.015 1.012 1.011 1.012 1.013 1.017 1.003 1.003 1.002 1.001 1.001 1.001 1.001 1.000 1.000 1.000 1.001 Previous 1.350 1.005 1.005 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000
Selected 1.350 1.005 1.002 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 Cumulative 1.359 1.007 1.002 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 Percent 73.6% 99.3% 99.8% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%
Data was provided by RTA. Item 6J 153 30 RTA_02LI_063021.xlsx RIVERSIDE TRANSIT AGENCY Exhibit LI-2 (page 5) LIABILITY Historical Ratio of Limited Paid Losses and Limited Reported Incurred Losses
Claim Months of Development: Period 12 24 36 48 60 72 84 96 108 120 132 144 156 168 180 192 204 216 228 240 ------to 2001/02 2002/03 99.4% 99.4% 99.4% 99.4% 99.4% 99.4% 100.0% 100.0% 100.0% 100.0% 2003/04 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 2004/05 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 2005/06 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 2006/07 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 2007/08 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 2008/09 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 2009/10 95.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 2010/11 86.5% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 2011/12 40.9% 62.7% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 2012/13 41.0% 84.2% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 2013/14 45.0% 81.6% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 2014/15 26.3% 77.9% 95.8% 100.0% 100.0% 100.0% 100.0% 2015/16 25.9% 81.7% 100.0% 100.0% 100.0% 100.0% 2016/17 31.9% 100.0% 100.0% 100.0% 100.0% 2017/18 22.3% 46.3% 85.2% 97.9% 2018/19 27.5% 52.4% 30.4% 2019/20 4.9% 52.3% 2020/21 6.8%
Average All 27.3% 72.6% 90.6% 99.8% 100.0% 100.0% 100.0% 100.0% 100.0% 99.9% 99.9% 99.9% 99.9% 99.9% 99.9% 100.0% 100.0% 100.0% 100.0% Last 3 13.1% 50.3% 71.9% 99.3% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% Last 5 18.9% 62.1% 93.7% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% x-hi,low
Implicit 44.2% 73.7% 98.5% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%
Item 6J 154 31 RTA_02LI_063021.xlsx RIVERSIDE TRANSIT AGENCY Exhibit LI-3 LIABILITY Developed Limited Paid Losses
Developed Limited Limited Months of Paid Percent Paid Claim Development Losses Losses Losses Period 6/30/21 6/30/21 Paid (3)/(4) (1) (2) (3) (4) (5) ------to 2001/02 240.0 $3,308,352 100.0% $3,308,352 2002/03 228.0 379,472 100.0% 379,472 2003/04 216.0 252,207 100.0% 252,207 2004/05 204.0 170,943 100.0% 170,943 2005/06 192.0 262,902 100.0% 262,902 2006/07 180.0 222,096 100.0% 222,096 2007/08 168.0 245,271 100.0% 245,271 2008/09 156.0 98,053 100.0% 98,053 2009/10 144.0 195,899 100.0% 195,899 2010/11 132.0 217,584 100.0% 217,584 2011/12 120.0 173,881 100.0% 173,881 2012/13 108.0 261,441 100.0% 261,441 2013/14 96.0 209,576 100.0% 209,576 2014/15 84.0 247,758 100.0% 247,758 2015/16 72.0 256,311 100.0% 256,311 2016/17 60.0 127,143 100.0% 127,143 2017/18 48.0 284,929 100.0% 284,929 2018/19 36.0 182,978 98.0% 185,637 * 2019/20 24.0 532,120 72.6% 581,929 * 2020/21 12.0 6,672 19.4% 34,452 ------Total $7,635,584 $7,715,833
* - Indicates large claim(s) limited to retention. For details, see Exhibit LI-14.
(3) is from Exhibit LI-1.
(4) is from Exhibit LI-2.
Item 6J 155 32 RTA_02LI_063021.xlsx RIVERSIDE TRANSIT AGENCY Exhibit LI-4 LIABILITY Developed Limited Reported Incurred Losses
Developed Limited Limited Reported Reported Months of Incurred Percent Incurred Claim Development Losses Losses Losses Period 6/30/21 6/30/21 Reported (3)/(4) (1) (2) (3) (4) (5) ------to 2001/02 240.0 $3,308,352 100.0% $3,308,352 2002/03 228.0 379,472 100.0% 379,472 2003/04 216.0 252,207 100.0% 252,207 2004/05 204.0 170,943 100.0% 170,943 2005/06 192.0 262,902 100.0% 262,902 2006/07 180.0 222,096 100.0% 222,096 2007/08 168.0 245,271 100.0% 245,271 2008/09 156.0 98,053 100.0% 98,053 2009/10 144.0 195,899 100.0% 195,899 2010/11 132.0 217,584 100.0% 217,584 2011/12 120.0 173,881 100.0% 173,881 2012/13 108.0 261,441 100.0% 261,441 2013/14 96.0 209,576 100.0% 209,576 2014/15 84.0 247,758 100.0% 247,758 2015/16 72.0 256,311 100.0% 256,311 2016/17 60.0 127,143 100.0% 127,143 2017/18 48.0 290,913 100.0% 290,913 2018/19 36.0 601,237 99.5% 601,993 * 2019/20 24.0 1,018,135 98.5% 1,021,418 * 2020/21 12.0 97,741 43.8% 223,226 ------Total $8,636,911 $8,766,436
* - Indicates large claim(s) limited to retention. For details, see Exhibit LI-14.
(3) is from Exhibit LI-1.
(4) is from Exhibit LI-2.
Item 6J 156 33 RTA_02LI_063021.xlsx RIVERSIDE TRANSIT AGENCY Exhibit LI-5 LIABILITY Developed Limited Case Reserves
Percent Losses Developed Reserved Limited Limited Limited Months of Percent Percent 6/30/21 Paid Case Case Claim Development Losses Losses [(4)-(3)]/ Losses Reserves Reserves Period 6/30/21 Paid Reported [100.0%-(3)] 6/30/21 6/30/21 (6)+(7)/(5) (1) (2) (3) (4) (5) (6) (7) (8) ------to 2001/02 240.0 100.0% 100.0% 100.0% $3,308,352 $0 $3,308,352 2002/03 228.0 100.0% 100.0% 100.0% 379,472 0 379,472 2003/04 216.0 100.0% 100.0% 100.0% 252,207 0 252,207 2004/05 204.0 100.0% 100.0% 100.0% 170,943 0 170,943 2005/06 192.0 100.0% 100.0% 100.0% 262,902 0 262,902 2006/07 180.0 100.0% 100.0% 100.0% 222,096 0 222,096 2007/08 168.0 100.0% 100.0% 100.0% 245,271 0 245,271 2008/09 156.0 100.0% 100.0% 100.0% 98,053 0 98,053 2009/10 144.0 100.0% 100.0% 100.0% 195,899 0 195,899 2010/11 132.0 100.0% 100.0% 100.0% 217,584 0 217,584 2011/12 120.0 100.0% 100.0% 100.0% 173,881 0 173,881 2012/13 108.0 100.0% 100.0% 100.0% 261,441 0 261,441 2013/14 96.0 100.0% 100.0% 100.0% 209,576 0 209,576 2014/15 84.0 100.0% 100.0% 100.0% 247,758 0 247,758 2015/16 72.0 100.0% 100.0% 100.0% 256,311 0 256,311 2016/17 60.0 100.0% 100.0% 100.0% 127,143 0 127,143 2017/18 48.0 100.0% 100.0% 100.0% 284,929 5,984 290,913 2018/19 36.0 98.0% 99.5% 74.6% 182,978 418,259 629,521 * 2019/20 24.0 72.6% 98.5% 94.6% 532,120 486,015 1,025,876 * 2020/21 12.0 19.4% 43.8% 30.3% 6,672 91,069 307,382 ------Total $7,635,584 $1,001,327 $8,882,577
* - Indicates large claim(s) limited to retention. For details, see Exhibit LI-14.
(3) and (4) are from Exhibit LI-2.
(6) and (7) are from Exhibit LI-1.
Item 6J 157 34 RTA_02LI_063021.xlsx RIVERSIDE TRANSIT AGENCY Exhibit LI-6 LIABILITY Preliminary Projected Ultimate Limited Losses to 2020/21
Developed Preliminary Developed Limited Developed Projected Limited Reported Limited Ultimate Claim Paid Incurred Case Limited Period Losses Losses Reserves Losses (1) (2) (3) (4) (5) ------to 2001/02 # $3,308,352 $3,308,352 $3,308,352 # $3,308,352 2002/03 # 379,472 379,472 379,472 # 379,472 2003/04 # 252,207 252,207 252,207 # 252,207 2004/05 # 170,943 170,943 170,943 # 170,943 2005/06 # 262,902 262,902 262,902 # 262,902 2006/07 # 222,096 222,096 222,096 # 222,096 2007/08 # 245,271 245,271 245,271 # 245,271 2008/09 # 98,053 98,053 98,053 # 98,053 2009/10 # 195,899 195,899 195,899 # 195,899 2010/11 # 217,584 217,584 217,584 # 217,584 2011/12 # 173,881 173,881 173,881 # 173,881 2012/13 9 261,441 261,441 261,441 9 261,441 2013/14 8 209,576 209,576 209,576 8 209,576 2014/15 7 247,758 247,758 247,758 7 247,758 2015/16 6 256,311 256,311 256,311 6 256,311 2016/17 5 127,143 127,143 127,143 5 127,143 2017/18 4 284,929 290,913 290,913 4 291,511 2018/19 3 185,637 601,993 629,521 3 643,063 2019/20 2 581,929 1,021,418 1,025,876 2 1,066,737 2020/21 1 34,452 223,226 307,382 1 265,304 ------0 ------0 ------Total 0 $7,715,833 $8,766,436 $8,882,577 0 $8,895,500 00 00 00 00 00 00 00 00
(2) is from Exhibit LI-3.
(3) is from Exhibit LI-4.
(4) is from Exhibit LI-5.
(5) is based on (2) to (4) and actuarial judgment.
Item 6J 158 35 RTA_02LI_063021.xlsx RIVERSIDE TRANSIT AGENCY Exhibit LI-7 LIABILITY Bornhuetter - Ferguson Analysis
I. A-priori Loss Rate
Trended Projected Preliminary Limited Limited A-priori Projected Loss Rate Loss Rate Loss Rate Loss Rate Ultimate per 1,000 Trend per 1,000 per 1,000 Claim Limited Revenue Miles Revenue Miles (2021/22 Revenue Miles Revenue Miles Period Losses (000) (2)/(3) = 1.000) (4)X(5) (7)/(5) (1) (2) (3) (4) (5) (6) (8) ------2011/12 # $173,881 5,589 $31.11 4.986 $155.11 $32.46 2012/13 9 261,441 6,015 43.47 4.888 212.46 33.11 2013/14 8 209,576 6,157 34.04 4.792 163.12 33.77 2014/15 7 247,758 6,782 36.53 4.698 171.63 34.44 2015/16 6 256,311 7,162 35.79 4.606 164.84 35.13 2016/17 5 127,143 6,934 18.34 4.001 73.36 40.45 2017/18 4 291,511 6,414 45.45 1.407 63.95 115.00 2018/19 3 643,063 6,648 96.73 1.380 133.45 117.30 2019/20 2 1,066,737 6,403 166.59 1.353 225.32 119.64 2020/21 1 265,304 5,027 52.78 1.020 53.84 158.65
(7) Projected 2021/22 a-priori loss rate per 1,000 Revenue Miles $161.82
II. Bornhuetter - Ferguson Analysis Based on Limited Paid Losses
B-F Projected B-F Ultimate Limited A-priori Unpaid Limited Paid Percent Loss Rate Losses Paid Claim Losses Losses per 1,000 Revenue Miles [100.0%-(3)] Losses Period 6/30/21 Paid Revenue Miles (000) X(4)X(5) (2)+(6) (1) (2) (3) (4) (5) (6) (7) ------2016/17 # $127,143 100.0% $40.45 6,934 $0 $127,143 2017/18 # 284,929 100.0% 115.00 6,414 0 284,929 2018/19 # 182,978 98.0% 117.30 6,648 15,290 198,268 2019/20 # 532,120 72.6% 119.64 6,403 209,754 741,875 2020/21 # 6,672 19.4% 158.65 5,027 643,028 649,700
III. Bornhuetter - Ferguson Analysis Based on Limited Reported Incurred Losses
B-F Limited Projected B-F Ultimate Reported A-priori Unreported Limited Incurred Percent Loss Rate Losses Reported Claim Losses Losses per 1,000 Revenue Miles [100.0%-(3)] Losses Period 6/30/21 Reported Revenue Miles (000) X(4)X(5) (2)+(6) (1) (2) (3) (4) (5) (6) (7) ------2016/17 # $127,143 100.0% $40.45 6,934 $0 $127,143 2017/18 # 290,913 100.0% 115.00 6,414 0 290,913 2018/19 # 601,237 99.5% 117.30 6,648 3,880 605,116 2019/20 # 1,018,135 98.5% 119.64 6,403 11,359 1,029,495 2020/21 # 97,741 43.8% 158.65 5,027 448,290 546,031
Section I, (2) is from Exhibit LI-6.
Section I, (3), Section II, (5) and Section III, (5) are from Exhibit LI-10.
Section I, (5) is based on a 2% trend and adjusted for change in retention.
Section I, (7) is based on Section I, (6) and actuarial judgment.
Sections II and III, (2) are from Exhibit LI-1.
Sections II and III, (3) are from Exhibit LI-2.
SectionsItem II6J and III, (4) are from Section I, (8). 159 36 RTA_02LI_063021.xlsx RIVERSIDE TRANSIT AGENCY Exhibit LI-8 LIABILITY Frequency Times Severity Analysis
I. Projected Ultimate Claims
Projected Frequency Months of Reported Percent Ultimate (per 1M Claim Development Claims Claims Claims Revenue Miles Revenue Miles) Period 6/30/21 6/30/21 Reported (3)/(4) (000) (5)/(6)X1,000 (1) (2) (3) (4) (5) (6) (7) ------2011/12 120.0 24 100.0% 24 5,589 4.29 2012/13 108.0 34 100.0% 34 6,015 5.65 2013/14 96.0 44 100.0% 44 6,157 7.15 2014/15 84.0 55 100.0% 55 6,782 8.11 2015/16 72.0 45 100.0% 45 7,162 6.28 2016/17 60.0 33 100.0% 33 6,934 4.76 2017/18 48.0 29 100.0% 29 6,414 4.52 2018/19 36.0 32 99.8% 32 6,648 4.81 2019/20 24.0 49 99.3% 49 6,403 7.65 2020/21 12.0 21 73.6% 29 5,027 5.77
II. Frequency Times Severity
De-Trended Projected Preliminary Trended 2021/22 Projected Severity Average Average Frequency Ultimate Projected Average Trend Claim Claim Times Claim Limited Ultimate Severity (2021/22 Severity Severity Severity Period Losses Claims (2)/(3) = 1.000) (4)X(5) (7)/(5) (3)X(8) (1) (2) (3) (4) (5) (6) (8) (9) ------2011/12 $173,881 24 $7,245 4.986 $36,121 $5,412 $129,899 2012/13 261,441 34 7,689 4.888 37,585 5,521 187,704 2013/14 209,576 44 4,763 4.792 22,825 5,631 247,769 2014/15 247,758 55 4,505 4.698 21,164 5,744 315,905 2015/16 256,311 45 5,696 4.606 26,235 5,859 263,637 2016/17 127,143 33 3,853 4.001 15,415 6,745 222,575 2017/18 291,511 29 10,052 1.407 14,145 19,177 556,125 2018/19 643,063 32 20,096 1.380 27,723 19,560 625,929 2019/20 1,066,737 49 21,770 1.353 29,445 19,951 977,622 2020/21 265,304 29 9,148 1.020 9,331 26,456 767,214
(7) Projected 2021/22 average claim severity $26,985
Section I, (3) is from Exhibit LI-1.
Section I, (4) is from Exhibit LI-2.
Section I, (6) is from Exhibit LI-10.
Section II, (2) is from Exhibit LI-6.
Section II, (3) is from Section I, (5).
Section II, (5) is based on a 2% trend and adjusted for change in retention.
Section II, (7) is based on (6) and actuarial judgment.
Item 6J 160 37 RTA_02LI_063021.xlsx RIVERSIDE TRANSIT AGENCY Exhibit LI-9 LIABILITY Projected Ultimate Limited Losses to 2020/21
Developed B-F B-F Developed Limited Developed Ultimate Ultimate Projected Limited Reported Limited Limited Limited Frequency Ultimate Claim Paid Incurred Case Paid Reported Times Limited Period Losses Losses Reserves Losses Losses Severity Losses (1) (2) (3) (4) (5) (6) (7) (8) ------to 2001/02 $3,308,352 $3,308,352 $3,308,352 $0 $0 $0 # $3,308,352 2002/03 379,472 379,472 379,472 000#379,472 2003/04 252,207 252,207 252,207 000#252,207 2004/05 170,943 170,943 170,943 000#170,943 2005/06 262,902 262,902 262,902 000#262,902 2006/07 222,096 222,096 222,096 000#222,096 2007/08 245,271 245,271 245,271 000#245,271 2008/09 98,053 98,053 98,053 000#98,053 2009/10 195,899 195,899 195,899 000#195,899 2010/11 217,584 217,584 217,584 000#217,584 2011/12 173,881 173,881 173,881 000#173,881 2012/13 261,441 261,441 261,441 0009261,441 2013/14 209,576 209,576 209,576 0008209,576 2014/15 247,758 247,758 247,758 0007247,758 2015/16 256,311 256,311 256,311 0006256,311 2016/17 127,143 127,143 127,143 127,143 127,143 222,575 5 127,143 2017/18 284,929 290,913 290,913 284,929 290,913 556,125 4 292,000 2018/19 185,637 601,993 629,521 198,268 605,116 625,929 3 643,063 2019/20 581,929 1,021,418 1,025,876 741,875 1,029,495 977,622 2 1,066,737 2020/21 34,452 223,226 307,382 649,700 546,031 767,214 1 482,000 0 0 0 0 0 0 0 0 0 0
(2) is from Exhibit LI-3.
(3) is from Exhibit LI-4.
(4) is from Exhibit LI-5.
(5) and (6) are from Exhibit LI-7.
(7) is from Exhibit LI-8.
(8) is based on (2) to (7) and actuarial judgment.
Item 6J 161 38 RTA_02LI_063021.xlsx RIVERSIDE TRANSIT AGENCY Exhibit LI-10 LIABILITY Projected Ultimate Limited Losses for 2021/22 and Subsequent
Trended Limited Limited Projected Loss Rate Loss Rate Loss Rate Ultimate per 1,000 Trend per 1,000 Claim Limited Revenue Miles Revenue Miles (2021/22 Revenue Miles Period Losses (000) (2)/(3) = 1.000) (4)X(5) (1) (2) (3) (4) (5) (6) ------2011/12 $173,881 5,589 $31.11 4.986 $155.11 2012/13 261,441 6,015 43.47 4.888 212.46 2013/14 209,576 6,157 34.04 4.792 163.12 2014/15 247,758 6,782 36.53 4.698 171.63 2015/16 256,311 7,162 35.79 4.606 164.84 2016/17 127,143 6,934 18.34 4.001 73.36 2017/18 292,000 6,414 45.52 1.407 64.06 2018/19 643,063 6,648 96.73 1.380 133.45 2019/20 1,066,737 6,403 166.59 1.353 225.32 2020/21 482,000 5,027 95.89 1.020 97.81 ------Total $3,759,908 63,131 $59.56 $146.11
Present Value of Present Projected Value of Projected Projected Limited Projected Limited Ultimate Loss Rate Ultimate Loss Rate Projected Limited Present per 1,000 Limited Claim per 1,000 Revenue Miles Losses Value Revenue Miles Losses Period Revenue Miles (000) (7)X(8) Factor (7)X(10) (8)X(11) (1) (7) (8) (9) (10) (11) (12) ------20 2021/22 $161.83 4,486 $726,000 0.992 $160.54 $720,000 2022/23 165.07 4,620 763,000 0.992 163.75 757,000 2023/24 168.37 4,759 801,000 0.99 167.03 795,000 2024/25 171.73 4,902 842,000 0.99 170.37 835,000 2025/26 175.17 5,049 884,000 0.99 173.78 877,000
(2) is from Exhibit LI-9.
(3) was provided by RTA.
(5) is based on a 2% trend and adjusted for change in retention.
(7) 2021/22 is based on (6) and actuarial judgment. Other period(s) based on 2021/22 plus a 2% trend.
(8) to 2021/22 was provided by RTA. Other claim periods are based on a 3% trend.
(10) is based on a 0.5% interest rate and the payout pattern in Exhibit LI-2.
Item 6J 162 39 RTA_02LI_063021.xlsx RIVERSIDE TRANSIT AGENCY Exhibit LI-11 LIABILITY Estimated Outstanding Losses as of June 30, 2021
Present Value of Limited Estimated Estimated Limited Limited Reported Projected Estimated Outstanding Outstanding Paid Case Incurred Ultimate IBNR Losses Present Losses Claim Losses Reserves Losses Limited 6/30/21 6/30/21 Value 6/30/21 Period 6/30/21 6/30/21 6/30/21 Losses (5)-(4) (3)+(6) Factor (7)X(8) (1) (2) (3) (4) (5) (6) (7) (8) (9) ------to 2001/02 $3,308,352 $0 $3,308,352 $3,308,352 $0 $0 # 1.000 $0 2002/03 379,472 0 379,472 379,472 0 0 # 1.000 0 2003/04 252,207 0 252,207 252,207 0 0 # 1.000 0 2004/05 170,943 0 170,943 170,943 0 0 # 1.000 0 2005/06 262,902 0 262,902 262,902 0 0 # 1.000 0 2006/07 222,096 0 222,096 222,096 0 0 # 1.000 0 2007/08 245,271 0 245,271 245,271 0 0 # 1.000 0 2008/09 98,053 0 98,053 98,053 0 0 # 1.000 0 2009/10 195,899 0 195,899 195,899 0 0 # 1.000 0 2010/11 217,584 0 217,584 217,584 0 0 # 1.000 0 2011/12 173,881 0 173,881 173,881 0 0 # 1.000 0 2012/13 261,441 0 261,441 261,441 0 0 # 1.000 0 2013/14 209,576 0 209,576 209,576 0 0 # 1.000 0 2014/15 247,758 0 247,758 247,758 0 0 # 1.000 0 2015/16 256,311 0 256,311 256,311 0 0 # 1.000 0 2016/17 127,143 0 127,143 127,143 0 0 # 1.000 0 2017/18 284,929 5,984 290,913 292,000 1,087 7,071 # 1.000 7,071 2018/19 182,978 418,259 601,237 643,063 41,826 460,085 # 0.998 458,939 2019/20 532,120 486,015 1,018,135 1,066,737 48,602 534,617 # 0.997 533,095 2020/21 6,672 91,069 97,741 482,000 384,259 475,328 # 0.996 473,286 ------# ------Total $7,635,584 $1,001,327 $8,636,911 $9,112,685 $475,774 $1,477,101 # $1,472,391 # # # # # # # #
(2), (3) and (4) are net of specific self-insured retention and aggregate retention.
(5) is from Exhibit LI-9.
(8) is based on a 0.5% interest rate and the payout pattern in Exhibit LI-2. Item 6J 163 40 RTA_02LI_063021.xlsx RIVERSIDE TRANSIT AGENCY Exhibit LI-12 LIABILITY Projected Losses Paid July 1, 2021 to June 30, 2022
Percent Outstanding Present Losses Value of Paid Estimated Estimated 7/1/21 to Estimated Projected Outstanding Outstanding Months of Percent Months of Percent 6/30/22 Outstanding Losses Losses Present Losses Claim Development Losses Development Losses [(5)-(3)]/ Losses Paid 6/30/22 Value 6/30/22 Period 6/30/21 Paid 6/30/22 Paid [100.0%-(3)] 6/30/21 (6)X(7) (7)-(8) Factor (9)X(10) (1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11) ------to 2001/02 240.0 100.0% 252.0 100.0% 100.0% $0 $0 $0 # 1.000 $0 2002/03 228.0 100.0% 240.0 100.0% 100.0% 0 0 0 # 1.000 0 2003/04 216.0 100.0% 228.0 100.0% 100.0% 0 0 0 # 1.000 0 2004/05 204.0 100.0% 216.0 100.0% 100.0% 0 0 0 # 1.000 0 2005/06 192.0 100.0% 204.0 100.0% 100.0% 0 0 0 # 1.000 0 2006/07 180.0 100.0% 192.0 100.0% 100.0% 0 0 0 # 1.000 0 2007/08 168.0 100.0% 180.0 100.0% 100.0% 0 0 0 # 1.000 0 2008/09 156.0 100.0% 168.0 100.0% 100.0% 0 0 0 # 1.000 0 2009/10 144.0 100.0% 156.0 100.0% 100.0% 0 0 0 # 1.000 0 2010/11 132.0 100.0% 144.0 100.0% 100.0% 0 0 0 # 1.000 0 2011/12 120.0 100.0% 132.0 100.0% 100.0% 0 0 0 # 1.000 0 2012/13 108.0 100.0% 120.0 100.0% 100.0% 0 0 0 # 1.000 0 2013/14 96.0 100.0% 108.0 100.0% 100.0% 0 0 0 # 1.000 0 2014/15 84.0 100.0% 96.0 100.0% 100.0% 0 0 0 # 1.000 0 2015/16 72.0 100.0% 84.0 100.0% 100.0% 0 0 0 # 1.000 0 2016/17 60.0 100.0% 72.0 100.0% 100.0% 0 0 0 # 1.000 0 2017/18 48.0 100.0% 60.0 100.0% 100.0% 7,071 7,071 0 # 1.000 0 2018/19 36.0 98.0% 48.0 100.0% 100.0% 460,085 460,085 0 # 1.000 0 2019/20 24.0 72.6% 36.0 98.0% 92.8% 534,617 496,329 38,288 # 0.998 38,193 2020/21 12.0 19.4% 24.0 72.6% 66.0% 475,328 313,936 161,392 # 0.997 160,933 2021/22 0.0 0.0% 12.0 19.4% 19.4% 726,000 140,595 585,405 # 0.996 582,890 ------# ------Total $2,203,101 $1,418,016 $785,085 # $782,016 # # # # # # # # # # # #
(3) and (5) are from Exhibit LI-2.
(7) to 2020/21 is from Exhibit LI-11. The amount for 2021/22 is from Exhibit LI-10. Item 6J 164 (10) is based on a 0.5% interest rate and the payout pattern in Exhibit LI-2. 41 RTA_02LI_063021.xlsx RIVERSIDE TRANSIT AGENCY Exhibit LI-13 LIABILITY Projected Losses Paid July 1, 2022 to June 30, 2023
Percent Outstanding Present Losses Value of Paid Estimated Estimated 7/1/22 to Estimated Projected Outstanding Outstanding Months of Percent Months of Percent 6/30/23 Outstanding Losses Losses Present Losses Claim Development Losses Development Losses [(5)-(3)]/ Losses Paid 6/30/23 Value 6/30/23 Period 6/30/22 Paid 6/30/23 Paid [100.0%-(3)] 6/30/22 (6)X(7) (7)-(8) Factor (9)X(10) (1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11) ------to 2001/02 252.0 100.0% 264.0 100.0% 100.0% $0 $0 $0 # 1.000 $0 2002/03 240.0 100.0% 252.0 100.0% 100.0% 0 0 0 # 1.000 0 2003/04 228.0 100.0% 240.0 100.0% 100.0% 0 0 0 # 1.000 0 2004/05 216.0 100.0% 228.0 100.0% 100.0% 0 0 0 # 1.000 0 2005/06 204.0 100.0% 216.0 100.0% 100.0% 0 0 0 # 1.000 0 2006/07 192.0 100.0% 204.0 100.0% 100.0% 0 0 0 # 1.000 0 2007/08 180.0 100.0% 192.0 100.0% 100.0% 0 0 0 # 1.000 0 2008/09 168.0 100.0% 180.0 100.0% 100.0% 0 0 0 # 1.000 0 2009/10 156.0 100.0% 168.0 100.0% 100.0% 0 0 0 # 1.000 0 2010/11 144.0 100.0% 156.0 100.0% 100.0% 0 0 0 # 1.000 0 2011/12 132.0 100.0% 144.0 100.0% 100.0% 0 0 0 # 1.000 0 2012/13 120.0 100.0% 132.0 100.0% 100.0% 0 0 0 # 1.000 0 2013/14 108.0 100.0% 120.0 100.0% 100.0% 0 0 0 # 1.000 0 2014/15 96.0 100.0% 108.0 100.0% 100.0% 0 0 0 # 1.000 0 2015/16 84.0 100.0% 96.0 100.0% 100.0% 0 0 0 # 1.000 0 2016/17 72.0 100.0% 84.0 100.0% 100.0% 0 0 0 # 1.000 0 2017/18 60.0 100.0% 72.0 100.0% 100.0% 0 0 0 # 1.000 0 2018/19 48.0 100.0% 60.0 100.0% 100.0% 0 0 0 # 1.000 0 2019/20 36.0 98.0% 48.0 100.0% 100.0% 38,288 38,288 0 # 1.000 0 2020/21 24.0 72.6% 36.0 98.0% 92.8% 161,392 149,833 11,559 # 0.998 11,530 2021/22 12.0 19.4% 24.0 72.6% 66.0% 585,405 386,638 198,767 # 0.997 198,201 2022/23 0.0 0.0% 12.0 19.4% 19.4% 763,000 147,761 615,239 # 0.996 612,596 ------# ------Total $1,548,085 $722,520 $825,565 # $822,327 # # # # # # # # # # #
(3) and (5) are from Exhibit LI-2.
(7) to 2021/22 is from Exhibit LI-12, (9). The amount for 2022/23 is from Exhibit LI-10. Item 6J 165 (10) is based on a 0.5% interest rate and the payout pattern in Exhibit LI-2. 42 RTA_02LI_063021.xlsx RIVERSIDE TRANSIT AGENCY Exhibit LI-14 LIABILITY List of Large Claims Reported Incurred Losses Greater Than $50,000
Unlimited Unlimited Unlimited Reported Specific Paid Case Incurred Claim Date of Claim Self-Insured Losses Reserves Losses Number Loss Period Retention 6/30/21 6/30/21 6/30/21 (1) (2) (3) (4) (5) (6) (7) ------CLPA02547 09/23/88 to 2001/02 $25,000 $152,697 $0 $152,697 CLPA02772 03/17/89 to 2001/02 25,000 63,163 0 63,163 CLPA02625 07/16/90 to 2001/02 25,000 113,612 0 113,612 CLPA03271 12/20/90 to 2001/02 25,000 262,926 0 262,926 CLPA03405 11/02/91 to 2001/02 25,000 240,757 0 240,757 CLPA04264 06/28/94 to 2001/02 25,000 90,289 0 90,289 CLPA05175 10/12/96 to 2001/02 25,000 64,187 0 64,187 CLPA05551 06/28/97 to 2001/02 25,000 233,993 0 233,993 CLPA05664 09/09/97 to 2001/02 25,000 60,633 0 60,633 CLPA06213 10/08/98 to 2001/02 25,000 51,965 0 51,965 CLPA06482 03/03/99 to 2001/02 25,000 50,933 0 50,933 CLPA06472 03/11/99 to 2001/02 25,000 233,328 0 233,328 CLPA01536 11/19/02 2002/03 25,000 88,285 0 88,285 CLPA01579 12/16/02 2002/03 25,000 512,358 0 512,358 CLPA01719 02/23/03 2002/03 25,000 75,771 0 75,771 CLPA07316 07/19/03 2003/04 25,000 113,153 0 113,153 CLPA08219 04/16/06 2005/06 25,000 197,467 0 197,467 CLPA09213 06/29/07 2006/07 25,000 55,929 0 55,929 CLPA09492 06/25/08 2007/08 25,000 58,617 0 58,617 CLPA09743 09/04/08 2008/09 25,000 159,607 0 159,607 CLPA10228 06/01/10 2009/10 25,000 299,697 0 299,697 CLPA10194 08/17/10 2010/11 25,000 62,917 0 62,917 CLPA10337 03/19/11 2010/11 25,000 53,849 0 53,849 CLPA10559 08/16/11 2011/12 25,000 999,991 0 999,991 CLPA10560 01/12/12 2011/12 25,000 82,135 0 82,135 CLPA10751 08/28/12 2012/13 25,000 323,760 0 323,760 CLPA10958 12/28/12 2012/13 25,000 86,243 0 86,243 CLPA11177 11/08/13 2013/14 25,000 161,498 0 161,498 CLPA11114 12/19/13 2013/14 25,000 547,889 0 547,889 CLPA11144 01/12/14 2013/14 25,000 1,000,000 0 1,000,000 CLPA11500 01/17/15 2014/15 25,000 55,084 0 55,084 CLPA11528 04/05/15 2014/15 25,000 105,390 0 105,390 CLPA11688 07/21/15 2015/16 25,000 66,289 0 66,289 CLPA11646 07/22/15 2015/16 25,000 237,126 0 237,126 CLPA11889 02/22/16 2015/16 25,000 68,394 0 68,394 CLPA11813 03/05/16 2015/16 25,000 119,059 0 119,059 RSTA-0026 09/13/17 2017/18 50,000 + 50,000 0 50,000 RSTA-0031 03/23/18 2017/18 400,000 55,016 5,984 61,000 RSTA-0015 04/06/18 2017/18 400,000 74,386 0 74,386 RSTA-0037 10/17/18 2018/19 50,000 + 50,000 * 0 50,000 * RSTA-0055 03/12/19 2018/19 400,000 64,931 415,069 * 480,000 * RSTA-0076 06/03/19 2018/19 400,000 6,811 83,189 90,000 RSTA-0072 10/28/19 2019/20 400,000 2,500,000 * 10,917,510 13,417,510 * RSTA-0081 11/29/19 2019/20 400,000 49,172 678,273 * 727,446 * RSTA-0097 03/04/20 2019/20 400,000 22,170 54,422 76,592
+ EPL claim with $50,000 SIR.
The claim(s) indicated by a '*' have been limited in development.
AmountsItem are6J gross of excess insurance and net of other recoveries. 166
(1) through (7) were provided by RTA. 43 RTA_02LI_063021.xlsx RIVERSIDE TRANSIT AGENCY Exhibit LI-15 LIABILITY
Size of Loss Distribution
I. Reported Claim Count
Non-Zero Non-Zero Claim Claim Total Cumulative Cumulative Layer Prior 2011/12 2012/13 2013/14 2014/15 2015/16 2016/17 2017/18 2018/19 2019/20 2020/21 (2)…(12) Total % of Total (1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11) (12) (13) (14) (15)
0 21000001111022570 0.01 - 5,000 1,714 15 19 36 46 33 26 8 15 15 10 1,937 1,937 85.6% 5,000 - 10,000 7548425242441142,05190.6% 10,000 - 25,000 10123022322311212,17296.0% 25,000 - 50,000 331213112121482,22098.1% 50,000 - 100,000 121101202110212,24199.0% 100,000 - 250,000 80011200000122,25399.6% 250,000 - 500,000 20100000100 42,25799.7% 500,000 - 750,000 10010000010 32,26099.9% 750,000 - 1,000,000 01010000000 22,262100.0% Over 1,000,000 00000000010 12,263100.0%
Total 1,967 24 34 44 55 45 33 29 32 49 21 2,333 2,263
II. Total Reported Incurred Losses
Non-Zero Non-Zero Claim Claim Total Cumulative Cumulative Layer Prior 2011/12 2012/13 2013/14 2014/15 2015/16 2016/17 2017/18 2018/19 2019/20 2020/21 (2)…(12) Total % of Total (1) (2) (3) (3) (3) (3) (3) (3) (4) (5) (6) (7) (8) (9) (10)
0 $0$0$0$0$0$0$0$0$0$0$0 $0 0.01 - 5,000 1,797,980 41,220 60,115 82,271 80,739 63,492 48,567 9,464 14,235 10,567 19,006 2,227,657 2,227,657 7.8% 5,000 - 10,000 545,783 29,975 53,020 27,305 15,779 34,024 15,598 23,583 17,878 30,032 28,724 821,698 3,049,355 10.6% 10,000 - 25,000 1,609,014 27,686 48,306 0 26,240 33,795 37,978 37,971 29,124 36,915 20,000 1,907,028 4,956,383 17.3% 25,000 - 50,000 1,078,975 34,002 79,458 39,393 85,055 45,281 41,312 84,510 50,000 64,030 30,011 1,632,027 6,588,409 23.0% 50,000 - 100,000 776,537 82,135 86,243 0 55,084 134,683 0 135,386 90,000 76,592 0 1,436,660 8,025,069 28.0% 100,000 - 250,000 1,444,614 0 0 161,498 105,390 356,185000002,067,687 10,092,756 35.2% 250,000 - 500,000 562,623 0 323,76000000480,000 0 0 1,366,383 11,459,139 40.0% 500,000 - 750,000 512,358 0 0 547,88900000727,446 0 1,787,693 13,246,832 46.2% 750,000 - 1,000,000 0 999,991 0 1,000,00000000001,999,991 15,246,823 53.2% Over 1,000,000 00000000013,417,510 0 13,417,510 28,664,333 100.0%
Total $8,327,884 $1,215,008 $650,902 $1,858,357 $368,286 $667,460 $143,454 $290,913 $681,237 $14,363,091 $97,741 $28,664,333 $28,664,333
AmountsItem are gross 6J of excess insurance and net of other recoveries. 167
Data was provided by RTA. 44 RIVERSIDE TRANSIT AGENCY 1825 Third Street Riverside, CA 92507
September 16, 2021
TO: BOARD OF DIRECTORS
THRU: Larry Rubio, Chief Executive Officer
FROM: Kristin Warsinski, Director of Planning Jennifer Nguyen, Grants Manager
SUBJECT: Approve Resolutions Authorizing Filing of Grant Applications with the Federal Transit Administration (FTA) and California Department of Transportation (Caltrans) for Federal Fiscal Year 2021-2022 (FFY22)
Summary: On December 4, 2015, the Fixing America’s Surface Transportation (FAST) Act was signed into law, reauthorizing surface transportation programs through Federal Fiscal Year 2019-2020 (FFY20). The FAST Act was set to expire on September 30, 2020. On October 1, 2020, former President Donald Trump signed a Continuing Resolution (CR) which included a one-year extension of the FAST Act through September 30, 2021. The Infrastructure Investment and Jobs Act, which includes a Surface Transportation Reauthorization Bill, was approved by the Senate on August 10, 2021 and will act as a replacement for the FAST Act. This bill is currently with the House of Representatives for consideration and the vote is scheduled for September 27, 2021. Passage of the Infrastructure Investment and Jobs Act or an extension of the FAST Act is necessary to apply for and receive federal funding. In either case, the attached resolutions would allow Riverside Transit Agency (RTA) staff to apply for FTA funding for FFY22.
Annually, the FTA apportions funds for Section 5304, 5307, 5309, 5310, 5311 and 5339 grant programs. Under the FAST Act, transit operators are the direct recipients for 5307, 5309 and 5339 funds. Caltrans is the designated recipient for 5304, 5310 and 5311 funds in California. The funds are available for a variety of expenses as outlined below:
Item 6K 168 • FTA Section 5304 designates discretionary funding for planning activities that support economic vitality, increase transportation usage, increase security, promote energy conservation and preserve the existing transportation system.
• FTA Section 5307 designates formula funding for transit capital, operating assistance and for transportation related planning in urbanized areas (UZA). UZAs are Census- designated urban areas with a population of 50,000 or more. RTA receives funding for Riverside-San Bernardino, Murrieta- Temecula-Menifee, Hemet and Los Angeles-Long Beach- Anaheim UZAs.
• FTA Section 5309 designates discretionary funding for transit capital investments in fixed guideways including bus rapid transit.
• FTA Section 5310 designates formula funding to improve mobility for seniors and individuals with disabilities by removing barriers to transportation service and expanding transportation mobility options.
• FTA Section 5311 designates formula funding for public transit agencies in rural areas. A rural area is an area encompassing a population of less than 50,000 people that has not been designated in the most recent decennial census as an ‘urbanized area’ by the Secretary of Commerce.
• FTA Section 5339 urban designates formula funding for large UZAs to replace, rehabilitate and purchase buses and related equipment and to construct bus-related facilities including technological changes or innovations to modify low or no emission vehicles or facilities. Large UZAs are Census- designated UZAs with a population of over 200,000. Large UZAs that RTA receives funding for are Riverside-San Bernardino, Murrieta-Temecula-Menifee and Los Angeles- Long Beach-Anaheim.
• FTA Section 5339 small urban designates formula funding for small UZAs to replace, rehabilitate and purchase buses and related equipment and to construct bus-related facilities including technological changes or innovations to modify low or no emission vehicles or facilities. Small UZAs are Census- designated UZAs with a population of 50,000 to 199,999. The small UZA that RTA receives funding for is Hemet.
Most FTA grant opportunities require a resolution authorizing the
Item 6K 169 Agency to apply for funding. In some cases, the timeline to apply for a grant does not allow staff to present it to the RTA Board for approval prior to application. In these cases, staff will bring the grant back for ratification at the next appropriate meeting.
Staff does not anticipate any applications in FFY22 for 5304 or 5309 funds; however, the attached resolution will allow the agency to apply should the opportunity for additional funding arise.
The Agency will be allocated 5311 and 5310 funds this year. Although the funding amounts are not released yet, the applications will be due in FY22 and the attached resolution will ensure that staff meets the application deadline. RTA uses 5311 funds for rural operating expenses and 5310 funds for Mobility Management. Once the grants are awarded, staff will bring the final amount to the Board for ratification as part of the FY23 Short Range Transit Plan (SRTP).
Additionally, the Agency will apply for 5307, 5339 small urban and 5339 urban funds in FFY22, as indicated in the Board-approved FY22 SRTP. These grant applications are submitted directly to the FTA for approval and the attached resolution is required at the time of submittal.
Fiscal Impact:
None.
Committee Recommendation:
This item was discussed at the Board Administration and Operations Committee meeting on September 1, 2021. The Committee members unanimously approved and recommended this item to the full Board of Directors for their consideration.
Recommendation:
• Authorize the Board Chair to execute Resolution No. 2021-05 and Resolution No. 2021-06.
• Authorize staff to submit related grant applications using the attached Resolutions as required by Caltrans and FTA.
• Authorize the Chief Executive Officer or assigned designee to file and execute related applications with Caltrans and FTA.
Item 6K 170 RESOLUTION No. 2021-05
RESOLUTION OF THE BOARD OF DIRECTORS OF THE RIVERSIDE TRANSIT AGENCY AUTHORIZING THE FILING OF APPLICATIONS WITH THE CALIFORNIA DEPARTMENT OF TRANSPORTATION (CALTRANS) FOR FEDERAL TRANSPORTATION ASSISTANCE GRANTS UNDER SECTIONS 5304, 5310 AND 5311 AS AUTHORIZED BY CHAPTER 53 OF TITLE 49, U.S.C, AS AMENDED BY FIXING AMERICA’S SURFACE TRANSPORTATION (FAST) ACT, OR SUBSEQUENT REAUTHORIZATION BILL, AND OTHER FEDERAL STATUTES ADMINISTERED BY FTA FOR FEDERAL FISCAL YEAR 2021-2022
WHEREAS, the Secretary of Transportation is authorized to issue grants for mass transportation programs or projects; and
WHEREAS, the Governor of the State of California has delegated the designated recipient responsibilities to Caltrans to administer Section 5304 grants for sustainable transportation planning, Section 5310 grants for transportation projects for seniors and individuals with disabilities and Section 5311 grants to support public transit service in non-urbanized areas which have populations of fewer than 50,000 residents; and
WHEREAS, the grant contract or cooperative agreement for Federal financial assistance will impose certain obligations upon the Applicant, and may require the Applicant to provide the local share of the project cost; and
WHEREAS, the Applicant has, to the maximum extent feasible, coordinated with other transportation providers and users in the region (including social service agencies); and
WHEREAS, it is required by Caltrans in accord with the provisions of Title VI of the Civil Rights Act of 1964, that in connection with the filing of an application for assistance under the Federal Transit Act, the Applicant gives an assurance that it will comply with the Title VI of the Civil Rights Act of 1964 and Caltrans requirements thereunder; and
WHEREAS, the Riverside Transit Agency agrees to utilize disadvantaged business enterprises (DBEs) to the fullest extent possible in connection with the project(s), has established the procedures and will ensure maximum utilization of contracts or consultants for construction, supplies, equipment and other services; and
Item 6K 171 Resolution No. 2021-05 Page 2 of 3
WHEREAS, the Riverside Transit Agency is an eligible project sponsor for FTA Section 5304, 5310 and 5311 program assistance; and
WHEREAS, the Riverside Transit Agency has or will provide all annual certifications and assurances to Caltrans required for the project.
NOW, THEREFORE, BE IT RESOLVED by the Riverside Transit Agency Board of Directors:
1. That the Chief Executive Officer or assigned designee is authorized to file and execute grant applications on behalf of the Riverside Transit Agency with Caltrans for Federal assistance authorized by Chapter 53 of Title 49, U.S.C., as amended by FAST Act, or subsequent Reauthorization Bill, and other Federal statutes administered by FTA.
2. That the Chief Executive Officer or assigned designee is authorized to file and execute grant application certifications and assurances and other documents that Caltrans requires before awarding a grant contract or cooperative agreement.
3. That the Chief Executive Officer or assigned designee is authorized to execute grant and cooperative agreements with Caltrans on behalf of the Riverside Transit Agency.
Passed and approved this 16th day of September 2021.
AGENCY BOARD DESIGNEE:
RIVERSIDE TRANSIT AGENCY APPROVED AS TO FORM:
______Linda Krupa Barbara Raileanu Chair, Board of Directors Agency General Counsel
Item 6K 172 Resolution No. 2021-05 Page 3 of 3
CERTIFICATION
The undersigned duly qualified Clerk of the Board of Directors of the Riverside Transit Agency certifies that the foregoing is a true and correct copy of a resolution, adopted at a legally convened meeting of said Board of Directors at which a quorum was present held on September 16th, 2021.
ATTEST:
______Joan Hepworth Clerk of the Board of Directors
Item 6K 173 RESOLUTION No. 2021-06
RESOLUTION OF THE BOARD OF DIRECTORS OF THE RIVERSIDE TRANSIT AGENCY AUTHORIZING THE FILING OF APPLICATIONS WITH THE FEDERAL TRANSIT ADMINISTRATION (FTA) FOR FEDERAL TRANSPORTATION ASSISTANCE GRANTS UNDER SECTIONS 5307, 5309 AND 5339 AS AUTHORIZED BY CHAPTER 53 OF TITLE 49, U.S.C, AS AMENDED BY FIXING AMERICA’S SURFACE TRANSPORTATION (FAST) ACT, OR SUBSEQUENT REAUTHORIZATION BILL, AND OTHER FEDERAL STATUTES ADMINISTERED BY FTA FOR FEDERAL FISCAL YEAR 2021-2022
WHEREAS, the Secretary of Transportation is authorized to issue grants for mass transportation programs or projects; and
WHEREAS, FTA has been delegated authority to award Federal financial assistance for transportation projects; and
WHEREAS, the grant contract or cooperative agreement for Federal financial assistance will impose certain obligations upon the Applicant, and may require the Applicant to provide the local share of the project cost; and
WHEREAS, the Riverside Transit Agency is an eligible project sponsor for FTA Section 5307, 5309 and 5339 program assistance; and
WHEREAS, the Riverside Transit Agency has or will provide all annual certifications and assurances to FTA required for the project.
NOW, THEREFORE, BE IT RESOLVED by the Riverside Transit Agency Board of Directors:
1. That the Chief Executive Officer or assigned designee is authorized to file and execute grant applications on behalf of the Riverside Transit Agency with FTA for Federal assistance authorized by Chapter 53 of Title 49, U.S.C., as amended by FAST Act, or subsequent Reauthorization Bill, and other Federal statutes administered by FTA.
2. That the Chief Executive Officer or assigned designee is authorized to file and execute grant application certifications and assurances and other documents that FTA requires before awarding a grant contract or cooperative agreement.
Item 6K 174 Resolution No. 2021-06 Page 2 of 2
3. That the Chief Executive Officer or assigned designee is authorized to execute grant and cooperative agreements with FTA on behalf of the Riverside Transit Agency.
Passed and approved this 16th day of September 2021.
AGENCY BOARD DESIGNEE:
RIVERSIDE TRANSIT AGENCY APPROVED AS TO FORM:
______Linda Krupa Barbara Raileanu Chair, Board of Directors Agency General Counsel
CERTIFICATION
The undersigned duly qualified Clerk of the Board of Directors of the Riverside Transit Agency certifies that the foregoing is a true and correct copy of a resolution, adopted at a legally convened meeting of said Board of Directors at which a quorum was present held on September 16th, 2021.
ATTEST:
______Joan Hepworth Clerk of the Board of Directors
Item 6K 175 RIVERSIDE TRANSIT AGENCY 1825 Third Street Riverside, CA 92507
September 16, 2021
TO: BOARD OF DIRECTORS
THRU: Larry Rubio, Chief Executive Officer
FROM: Natalie Zaragoza, Chief Procurement and Logistics Officer
SUBJECT: Authorization to Award Agreement No. 21-022 to Intercare Holdings for Workers’ Compensation Claims Administration and Managed Care Services
Summary: The Agency utilizes the services of a third-party workers’ compensation administrator (TPA) to oversee its workers' compensation claims administration and managed care services program. The TPA's responsibility is to manage the worker compensation claims submitted under the Agency's program as well as provide on-going support and recommendations to Agency staff. Workers' compensation claims administration services include wage replacement benefits, medical treatment, vocational rehabilitation, and other benefits to employees who experience work related injuries. Managed care services include bill review, utilization review, nurse case management and Medicare reporting.
At the November 21, 2019 meeting, the Board approved an award to Pacific Claims Management (PCM) for Agreement No. 19-058 for Managed Care Services and Agreement No. 19-057 for Workers Compensation Claims Administration; Agreement No. 19-057 included a requirement for the assignment of a seasoned dedicated claims adjuster to the Agency. The Agency implemented this added value service as a means to achieve a reduction in claims and a more dedicated focus of ensuring appropriate and timely medical care. However, in actual practice this method has not been effective at lowering costs, and as a result, staff made the decision to reissue a procurement without the requirement for a dedicated claims adjuster and consolidated managed care services and workers compensation claims administration under one contract.
Accordingly, on May 14, 2021 staff issued Request for Proposal (RFP) No. 21-022. The RFP was publicly advertised in a newspaper of general circulation and a notice was posted on the Agency’s website along with a copy of the RFP document. In addition, the Agency sent notices to the local chambers’ of commerce of those cities that are members of the Joint Powers Agreement.
Item 6L 176 On June 17, 2021, the Agency received proposals from the following nine vendors:
• American Claims Management, Inc. San Diego, CA • CorVel Enterprises Comp, Inc. Dallas, TX • Elite Claims Management, Inc. Temecula, CA • Innovative Claim Solutions San Ramon, CA • Intercare Holdings Insurance Services, Inc. Rocklin, CA • Keenan & Associates Torrance, CA • Pacific Claims Management Fresno, CA • Sedgwick Claims Management Services, Inc. Memphis, TN • TRISTAR Risk Management Long Beach, CA
An evaluation committee representing staff from the purchasing, risk management, and human resource departments evaluated the proposals in accordance with the criteria listed in the RFP: qualifications, related experience and references; project staffing and project organization; technical approach and work plan; and completeness of response.
At the conclusion of the technical review, the four highest technically ranked firms were invited for virtual interviews. The interview process gives staff the opportunity to ask proposers specific questions that may not have been apparent from their written proposals. Those four firms were:
• Intercare Holdings Insurance Services, Inc. • Keenan & Associates • Pacific Claims Management • Sedgwick Claims Management Services, Inc.
At the conclusion of the interview process Intercare Holdings Insurance Services, Inc., Keenan & Associates, and Sedgwick Claims Management Services, Inc. were given the highest technical rankings and Pacific Claims Management was excluded from further consideration.
Staff requested Best and Final Offers (BAFO) from Intercare Holdings Insurance Services, Inc., Keenan & Associates, and Sedgwick Claims Management Services, Inc. As part of the BAFO process, vendors were instructed to review their originally proposed costs to ensure all anticipated expenses were considered. The final pricing submitted by each firm is shown below:
Item 6L 177
Year 1 Year 2 Option Option Option Firm Name Total Amount (Base Term) (Base Term) Year 1 Year 2 Year 3 Intercare Holdings $161,603.04 $165,643.20 $169,784.28 $174,028.92 $178,379.64 $849,439.08 Insurance Services
Sedgwick Claims Management $193,345.00 $199,219.00 $203,035.00 $207,419.00 $211,335.00 $1,014,353.00 Services, Inc.
Keenan & $222,050.00 $226,762.00 $231,614.00 $236,613.00 $241,761.00 $1,158,800.00 Associates
Based on the overall evaluation process (technical review, interviews, price analysis, and reference checks), it was the evaluation committee’s determination that Intercare Holdings Insurance Services, Inc. was the most technically responsive and responsible vendor and would provide the best value to the Agency.
As mentioned above, the 2019 Board authorization provided for award of two agreements to Pacific Claims Management. The current term of both agreements expire on December 31, 2022; upon board authorization, both agreements will be terminated early with services for the new provider anticipated to begin January 1, 2022.
Fiscal Impact:
Sufficient funding for workers’ compensation claims administration and managed care services has been included in the Agency’s FY22 operating budget. Funding for these services beyond the current fiscal year will be included in future fiscal year budget requests.
Committee Recommendation:
This item was discussed at the Board Budget and Finance Committee meeting on September 1, 2021. The Committee members approved and recommended this item to the full Board of Directors for their consideration.
Recommendation:
Authorize staff to award Agreement No. 21-022 to Intercare Holdings Insurance Services, Inc. for workers’ compensation claims administration and managed care services for a two-year base period with three one-year options, totaling five years, in an amount not-to-exceed $849,439.08.
Item 6L 178 RIVERSIDE TRANSIT AGENCY 1825 Third Street Riverside, CA 92507
September 16, 2021
TO: BOARD OF DIRECTORS
THRU: Larry Rubio, Chief Executive Officer
FROM: Melissa Blankenship, Director of Contracts
SUBJECT: Approve a Disadvantaged Business Enterprise (DBE) Participation Goal of 2.1% for Federal Fiscal Years 2022-2024 as Required Under Federal Transit Administration (FTA) Guidelines per Code of Federal Regulations, Title 49, Part 26
Summary: The Agency is required to establish and submit a Disadvantaged Business Enterprise (DBE) participation goal to the Federal Transit Administration (FTA) every three years in order to maintain the Agency’s eligibility to receive Federal financial assistance from the United States Department of Transportation (U.S. DOT). The primary purpose of the DBE program is to level the playing field by providing small businesses owned and controlled by socially and economically disadvantaged individuals a fair opportunity to compete for federally funded contracts.
In federal fiscal year 2010, the U.S. DOT amended provisions of CFR, Title 49, Part 26, effectively changing the DBE goal setting requirement from an annual goal to a triennial goal. Our current triennial DBE goal of 1.5%, approved by the Board on July 26, 2018 is in effect through September 30, 2021.
As required by CFR, Title 49, Part 26, the Agency must set its triennial goal using its best efforts to meet the goal through race neutral measures. While best efforts and race neutral measures are used to encourage and promote participation, if the Agency’s goal is not reached, then specific contract goals may be considered. Historically, the Agency has not needed to bolster its DBE participation with the establishment of contract specific goals.
The U.S. DOT’s Tips for Goal-Setting in the Disadvantaged Business Enterprise (DBE) Program were utilized to develop the Agency’s DBE goal for this next three-year period. By using these tools, a proposed goal of 2.1% was calculated. The resulting step by step methodology is set forth in
Item 6M 179 the attached; Riverside Transit Agency Federal Transit Administration DBE Triennial Goal Federal Fiscal Years 2022-2024. If approved by the Board, the Agency will comply with the requirement to post the proposed goal on its website for a period of thirty days.
Fiscal Impact:
There is no direct fiscal impact; establishing a three-year DBE participation goal is required for continued eligibility to receive federal financial assistance from the FTA.
Committee Recommendation:
This item was discussed at the Board Administration and Operations Committee meeting on September 1, 2021. The Committee members unanimously approved and recommended this item to the full Board of Directors for their consideration.
Recommendation:
Approve a 2.1% DBE participation goal for federal fiscal years 2022-2024.
Item 6M 180
Riverside Transit Agency
Federal Transit Administration (FTA) DBE Triennial Goal FFY 2022-2024
Submitted in fulfillment of: Title 49 Code of Federal Regulations Part 26
Item 6M 181 DBE Triennial Goal FFY 2022-2024 Page 1
Table of Contents
INTRODUCTION ...... 3 BACKGROUND ...... 3 FTA-ASSISTED CONTRACTING PROGRAM FOR FFY 2019-2021 ...... 3 Table 1 ...... 3 Table 2 ...... 4 Table 3 ...... 5 Table 4 ...... 6 GOAL METHODOLOGY ...... 7 Step 1: Determination of a Base Figure ...... 7 Table 5 ...... 7 Step 2: Adjusting the Base Figure ...... 9 A. Past DBE Goal Attainments ...... 9 B. Disparity Study ...... 10 C. Other Available Evidence ...... 10 PROPOSED OVERALL DBE GOAL ...... 10 UTILIZATION OF RACE/GENDER NEUTRAL METHOD...... 10 PUBLIC PARTICIPATION ...... 11
Item 6M 182 DBE Triennial Goal FFY 2022-2024 Page 2
1. INTRODUCTION
Riverside Transit Agency herein sets forth its overall Disadvantaged Business Enterprise (DBE) Goal along with the corresponding goal-setting methodology for the three-year Federal Fiscal Year (FFY) goal period of 2022- 2024 (October 1, 2021 through September 30, 2024), pursuant to Title 49 Code of Federal Regulations (CFR) Part 26 “Participation by Disadvantaged Business Enterprises in U.S. Department of Transportation Programs.”
2. BACKGROUND
Riverside Transit Agency is a recipient of U.S. Department of Transportation (USDOT), Federal Transit Administration (FTA) funding. As a condition of receiving this assistance, Riverside Transit Agency must comply with FTA’s DBE requirements. In accordance with Title 49 CFR Part 26; Participation by DBE’s in USDOT programs, Riverside Transit Agency is required to develop and submit a triennial overall DBE Goal for its FTA assisted projects. RTA does not have any sub-recipients.
3. FTA-ASSISTED CONTRACTING PROGRAM FOR FFY 2022-2024
Table 1 represents RTA’s FTA-assisted contracting program which lists all the projects considered in preparing the goal methodology. It is anticipated that the projects listed in this table will be awarded during the triennial period.
Table 1 Federal Funds Requested Projects WITH Contracting Opportunity 2022 - 2024 Capitalized Preventative Maintenance $5,050,000 Facility Maintenance $2,250,000 Relief Vehicles $500,000 ZEB Infrastructure $5,000,000 Tire Lease $250,000 Associated Transit Improvements $1,020,000 Facility, Fuel Station, Vehicle Upgrades $2,999,195 Fareboxes $3,000,000 Total FTA-assisted Contracting Opportunity $20,069,195
Table 2 represents all the projects in Table 1 but is further broken down by sub-contracting opportunities for each project (if applicable). NAICS codes were established for all work categories listed in Table 2.
Item 6M 183 DBE Triennial Goal FFY 2022-2024 Page 3
Table 2
Estimated FTA $ by Projects AND Sub-Contracting Opportunity NAICS NAICS Code 2022-2024 Capitalized Preventative Maintenance $5,050,000 Motor vehicle parts and accessories, new, merchant $3,030,000 423120 wholesalers General Automotive Repair $1,010,000 811111 Motor Vehicle Transmission and Power Train Parts $505,000 336350 Manufacturing
Motor Vehicle Brake System Manufacturing $505,000 336340
Non-Revenue Vehicles $500,000 New Car Dealers $500,000 441110 Fareboxes $3,000,000
Bus and Other Motor Vehicle Transit Systems $3,000,000 485113
Associated Transit Improvements $1,020,000
Concrete paving (i.e., highway, road, street, public sidewalk) $867,000 237310
Engineering Services $51,000 541330 Wall component (i.e., exterior, interior), prefabricated, $102,000 238130 installation Facility, Fuel Station, Vehicle Upgrades $2,999,195
Commercial and Industrial Machinery and Equipment Repair $1,199,678 811310 and Maintenance
Service Establishment Equipment and Supplies $599,839 423850
Plumbing, Heating and Air-Conditioning Contractors $1,199,678 238220
ZEB Infrastructure $5,000,000
Oil and Gas Pipeline and Related Structures Construction $1,000,000 237120
Administrative Management and General Management $1,500,000 541611 Consulting Services
Industrial Gas Manufacturing (Hydrogen) $1,250,000 325120 Masonry Contractors $500,000 238140
Structural Steel and Precast Concrete Contractors $750,000 238120
Facility Maintenance $2,250,000 Office furniture merchant wholesalers $112,500 423210 Carpet merchant wholesalers $112,500 423220 Painting (except roof) contractors $112,500 238320 Item 6M 184 DBE Triennial Goal FFY 2022-2024 Page 4
Plumbing contractors $562,500 238220
HVAC (heating, ventilation, and air-conditioning) contractors $675,000 238220
Electrical contractors $450,000 238210 Parking lot paving and sealing $225,000 238990 Tire Lease $250,000 Tire Manufacturers $250,000 423130 Total FTA-assisted Contracting Opportunity $20,069,195
After all the NAICS codes were assigned to the work categories in Table 2, the sheet was sorted by NAICS code number to identify any potential duplicates. In some cases, the same NAICS code applied to work categories across different projects as demonstrated in Table 3 (highlighted in red).
Table 3
Estimated FTA $ by NAICS Codes "Duplicates" NAICS Code NAICS 2022 - 2024 Motor vehicle parts and accessories, new, merchant wholesalers 423120 $3,030,000 General Automotive Repair 811111 $1,010,000 Motor Vehicle Transmission and Power Train Parts Manufacturing 336350 $505,000 Motor Vehicle Brake System Manufacturing 336340 $505,000 New Car Dealers 441110 $500,000 Bus and Other Motor Vehicle Transit Systems 485113 $3,000,000 Concrete paving (i.e., highway, road, street, public sidewalk) 237310 $867,000 Engineering Services 541330 $51,000 Wall component (i.e., exterior, interior), prefabricated, installation 238130 $102,000 Commercial and Industrial Machinery and Equipment Repair and Maintenance 811310 $1,199,678 Service Establishment Equipment and Supplies 423850 $599,839 Plumbing, Heating and Air-Conditioning Contractors 238220 $1,199,678 Oil and Gas Pipeline and Related Structures Construction 237120 $1,000,000 Administrative Management and General Management Consulting Services 541611 $1,500,000 Industrial Gas Manufacturing (Hydrogen) 325120 $1,250,000 Masonry Contractors 238140 $500,000 Structural Steel and Precast Concrete Contractors 238120 $750,000 Office furniture merchant wholesalers 423210 $112,500 Carpet merchant wholesalers 423220 $112,500 Painting (except roof) contractors 238320 $112,500 Plumbing contractors 238220 $562,500 HVAC (heating, ventilation, and air-conditioning) contractors 238220 $675,000 Item 6M 185 DBE Triennial Goal FFY 2022-2024 Page 5
Electrical contractors 238210 $450,000 Parking lot paving and sealing 238990 $225,000 Tire Manufacturers 423130 $250,000 Total FTA-assisted Contracting Opportunity $20,069,195
Table 4 provides a final summary of the work categories once all the duplicate NAICS codes were combined. The table also provides the estimated FTA funds per NAICS code and the corresponding NAICS weight for each work category.
Table 4 NAICS Estimated FTA $ NAICS Description/Codes COMBINED NAICS Code Weight by NAICS 2022-2024 Oil and Gas Pipeline and Related Structures Construction 237120 $1,000,000 4.98% Concrete paving (i.e., highway, road, street, public sidewalk) 237310 $867,000 4.32% Structural Steel and Precast Concrete Contractors 238120 $750,000 3.74% Wall component (i.e., exterior, interior), prefabricated, installation 238130 $102,000 0.51% Masonry Contractors 238140 $500,000 2.49% Electrical contractors 238210 $450,000 2.24% Plumbing contractors 238220 $2,437,178 12.14% Painting (except roof) contractors 238320 $112,500 0.56% Parking lot paving and sealing 238990 $225,000 1.12% Industrial Gas Manufacturing (Hydrogen) 325120 $1,250,000 6.23% Motor Vehicle Brake System Manufacturing 336340 $505,000 2.52% Motor Vehicle Transmission and Power Train Parts Manufacturing 336350 $505,000 2.52% Motor vehicle parts and accessories, new, merchant wholesalers 423120 $3,030,000 15.10% Tire Manufacturers 423130 $250,000 1.25% Office furniture merchant wholesalers 423210 $112,500 0.56% Carpet merchant wholesalers 423220 $112,500 0.56% Service Establishment Equipment and Supplies 423850 $599,839 2.99% New Car Dealers 441110 $500,000 2.49% Bus and Other Motor Vehicle Transit Systems 485113 $3,000,000 14.95% Engineering Services 541330 $51,000 0.25% Administrative Management and General Management Consulting Services 541611 $1,500,000 7.47% General Automotive Repair 811111 $1,010,000 5.03% Commercial and Industrial Machinery and Equipment Repair and Maintenance 811310 $1,199,678 5.98%
Total FTA-assisted Contracting Opportunity $20,069,195 100.00%
Item 6M 186 DBE Triennial Goal FFY 2022-2024 Page 6
4. GOAL METHODOLOGY
Step 1: Determination of a Base Figure RTA followed the prescribed federal methodology to determining a base figure. RTA looked at the availability of ready and willing DBE firms in each category code and also looked at ALL ready and willing firms in each category code. This information was gathered through the California Department of Transportation Office of Civil Rights – DBE Search and the 2019 U.S. Census Bureau County Business Patterns Database with specific market area defined based on the individual contracting opportunity.
RTA’s local market area consists of Riverside County and San Bernardino County. This is where the majority of contracting dollars are expended and/or the majority of contractor and subcontractor bids/quotes are located.
The base figure is derived by dividing the number of ready, willing and able DBE firms identified in each work category by the number of ALL firms identified in each work category (relative availability), then weighting the relative availability for each work category by the corresponding work category weight (Table 5), and then adding the weighted ratios together.
Number of Ready, Willing and Able DBE Firms Base Figure = X category weight X 100 Number of ALL Ready, Willing and Able Firms
Φ Numerator: California Department of Transportation DBE Search Φ Denominator: 2019 U.S. Census Bureau’s Business Patterns Database
To ensure the information pulled for DBE firms and ALL firms was apples to apples, the same geographic region was selected for both groups as noted in Table 5.
The result of the base figure calculation is 2.3%, as shown in Table 5:
Table 5 CATEGORY OF WORK / RIVERSIDE GEOGRAPHIC NAICS NAICS ALL DBE WEIGHTED AND SAN BERNARDINO COUNTIES & REGION CODE WEIGHT FIRMS FIRMS RATIO USA USED Oil and Gas Pipeline and Related 237120 4.98% United States 2194 4 0.01% Structures Construction Riverside & Concrete paving (i.e., highway, road, San 237310 4.32% 104 29 1.20% street, public sidewalk) Bernardino County Riverside & Structural Steel and Precast Concrete San 238120 3.74% 90 13 0.54% Contractors Bernardino County Riverside & Wall component (i.e., exterior, interior), San 238130 0.51% 122 2 0.01% prefabricated, installation Bernardino County Item 6M 187 DBE Triennial Goal FFY 2022-2024 Page 7
Riverside & San Masonry Contractors 238140 2.49% 171 2 0.03% Bernardino County Riverside & San Electrical contractors 238210 2.24% 1034 24 0.05% Bernardino County Riverside & San Plumbing contractors 238220 12.14% 1270 7 0.07% Bernardino County Riverside & San Painting (except roof) contractors 238320 0.56% 401 6 0.01% Bernardino County Riverside & San Parking lot paving and sealing 238990 1.12% 478 25 0.06% Bernardino County
Industrial Gas Manufacturing (Hydrogen) 325120 6.23% United States 496 0 0.00%
Motor Vehicle Brake System 336340 2.52% United States 176 0 0.00% Manufacturing Motor Vehicle Transmission and Power 336350 2.52% United States 459 0 0.00% Train Parts Manufacturing Motor vehicle parts and accessories, new, 423120 15.10% United States 12718 0 0.00% merchant wholesalers Tire Manufacturers 423130 1.25% United States 2745 6 0.00% Riverside & San Office furniture merchant wholesalers 423210 0.56% 141 0 0.00% Bernardino County Riverside & San Carpet merchant wholesalers 423220 0.56% 119 0 0.00% Bernardino County Service Establishment Equipment and 423850 2.99% United States 4576 24 0.02% Supplies New Car Dealers 441110 2.49% United States 21427 2 0.00% Bus and Other Motor Vehicle Transit 485113 14.95% United States 596 4 0.10% Systems Riverside & San Engineering Services 541330 0.25% 542 30 0.01% Bernardino County
Administrative Management and General 541611 7.47% United States 84455 969 0.09% Management Consulting Services Item 6M 188 DBE Triennial Goal FFY 2022-2024 Page 8
Riverside & San General Automotive Repair 811111 5.03% 1042 2 0.01% Bernardino County Riverside & Commercial and Industrial Machinery and San 811310 5.98% 246 4 0.10% Equipment Repair and Maintenance Bernardino County BASE FIGURE 100% 135602 1153 2.3%
Step 2: Adjusting the Base Figure After establishing the base figure, RTA reviewed other known factors potentially impacting the relative availability of DBE’s within the market area. This approach follows the narrow tailoring provisions set forth under 49 CFR Part 26.45: Step 2; DBE Goal Adjustment guidelines.
Factors considered in making an adjustment to the Base Figure include the following:
A. Past DBE Goal Attainments The primary form of evidence available is the past participation of DBE’s in RTA’s contracting. RTA calculated past DBE participation attainments for the last five (5) federal fiscal years. Table 6 reflects the actual representation of DBE’s on FTA-assisted contracts awarded by RTA in the last five federal fiscal years.
Table 6 Federal Fiscal Year (FFY) Annual DBE Goal FTA DBE Goal Attainment 2016 2.0% 1.0% 2017 2.0% 3.0% 2018 2.0% 1.0% 2019 1.5% 1.8% 2020 1.5% 2.6%
Median DBE Attainment Within 1.8% the Last Five Years
The median established for the past five years as shown in Table 6 is lower than the Base Figure derived from Step 1; therefore, an adjustment to the Base Figure based on RTA’s past DBE goal attainments has been made. The decision to make an adjustment was based on the following:
• The projects being proposed for FFY 2022-2024 are similar to previous years. As a result, the levels of DBE firms available for participation should be similar. • Another factor is the local competition for DBE participation. San Bernardino County will be investing $929 Million into the I-10 corridor project which is estimated to be completed in 2023. There is a DBE contract goal for this project. Due to the longer duration and greater value of this project, RTA anticipates continued competition for DBE contractor participation resulting in the reduced availability of these firms.
Item 6M 189 DBE Triennial Goal FFY 2022-2024 Page 9
Based on the aforementioned, RTA feels that an adjustment to the base figure is warranted. The adjustment is calculated in accordance with FTA guidance by averaging the Base Figure with the Median DBE past attainment, as shown below:
Adjusted Base Figure = Base Figure (2.3%) + Median Attainment (1.8%) 2
The formula resulted in a proposed adjustment (decrease) to the Base Figure from 2.3% to 2.1%
B. Disparity Study RTA reviewed the 2020 Caltrans disparity study but feels their data covers such a large geographical area (entire state of California) so it is not completely applicable to RTA’s goal setting methodology. However, like Caltrans, RTA did notice a higher base figure compared to their current DBE goal. This demonstrates that there is potentially a higher percentage of ‘availability’ in the market but based on past goal attainments RTA still feels an adjustment is warranted. Even after the adjustment, the result is a higher overall DBE goal for RTA versus the last triennial period.
RTA also reviewed the 2017 Los Angeles Metro disparity study but feels the size and scale of their projects are so much larger than RTA that it is not applicable.
C. Other Available Evidence RTA is not aware of any other factors that would have an impact on the DBE goal setting methodology.
5. PROPOSED OVERALL DBE GOAL
The final proposed overall DBE goal for FFY 2022-2024 for Riverside Transit Agency’s FTA-assisted contracts is 2.1%. The DBE goal is a Race Neutral goal and RTA will implement race neutral measures to achieve this goal.
6. UTILIZATION OF RACE/GENDER NEUTRAL METHOD
Utilization of race neutral measures is the preferred method of achieving DBE participation. Contract specific goals may be established in those instances when it is anticipated that exclusive use of race neutral measures may be insufficient to meet the goal.
We estimate that, in meeting our overall goal of 2.1%, we will obtain 100% from race neutral participation and 0% through race-conscious measures. The Agency actively seeks to solicit procurement participation from DBE firms and affirmatively ensures the same in its public notices.
Race neutral methods include, but are not necessarily limited to, the following:
• DBE participation through a prime contract obtained through competitive procurement procedures • DBE participation through a subcontract on a prime contract • RTA will unbundle solicitations, provide pre-bid/pre-proposal conferences to allow networking opportunities for primes and subcontractors
Item 6M 190 DBE Triennial Goal FFY 2022-2024 Page 10
• RTA will advise its contracting community of the online directory of certified DBE’s, found at the California Department of Transportation website: https://dot.ca.gov/programs/civil-rights/dbe-search • RTA will participate in local area DBE outreach events
RTA will also make efforts to ensure that Requests for Proposals (RFPs), Invitation for Bids (IFBs) and all corresponding contracting requirements foster participation by DBEs and other small businesses. RTA encourages prime contractors to subcontract portions of the work to DBEs. Formal RFPs and IFBs are available on RTA’s website as is RTA’s DBE policy and general information about “how to do business” with RTA.
DBE participation for FFY 2019-2021 is on track to achieve RTA’s 1.5% goal through race neutral measures. The Agency feels it can meet its DBE participation goal through race neutral measures for FFY 2022-2024 based on the following factors:
• Contracting opportunities in FFY 2022-2024 will be similar to those in FFY 2019-2021 • Staff will continue to utilize the DBE database to search for potential vendors on relevant projects and ensure they receive the procurement solicitation.
7. PUBLIC PARTICIPATION
In accordance with Public Participation Regulatory Requirements of Title 49 CFR Part 26, minority, women, local business associations, and community organizations with the Riverside Transit Agency market area were provided an opportunity to review the triennial goal analysis and provide input.
RTA will issue a notice on their website of the proposed FTA Overall DBE Goal Setting Methodology for FFY 2022-2024. This notice informs the public that the proposed goal and methodology is available for review at the RTA main office during normal business hours for 30 days following the date of public notice.
A public meeting was held virtually on August 30, 2021 at 10:00am.
Invites to the meeting and a copy of the DBE methodology goal were emailed directly to: • Greater Riverside Hispanic Chamber of Commerce • Black Chamber of Commerce Inland Empire • Inland Empire Women’s Business Center • Asian Indian Chamber of Commerce of the Inland Empire • Inland Empire Small Business Development Center • National Latina Business Women Association – Inland Empire • Chamber of Commerce for the following cities: Banning, Canyon Lake, Corona, Hemet, San Jacinto, Lake Elsinore, Menifee, Moreno Valley, Murrieta, Norco, Perris, Riverside and Temecula
The Director of the Hemet/San Jacinto Chamber attended the virtual meeting and took notes that she could share with businesses in her community. Staff also sent a follow up email with the link for certification information.
Staff held a separate virtual meeting on September 2, 2021 with the National Latina Business Women Association. The organization will be hosting a live in-person business event in late October and invited RTA to participate. Item 6M 191 DBE Triennial Goal FFY 2022-2024 Page 11
Due to the COVID-19 pandemic staff has been unable to attend outreach events to encourage DBE participation within the local community. Typically, at these events, RTA staff passes out information on how to become a vendor for RTA along with a CUCP handout that covers the general criteria for certification as a DBE.
Feedback from Public Participation Process Staff has not received any specific feedback related to the FFY 2022-2024 DBE Goal Setting Methodology. Overall, organizations are happy to hear about the efforts being made towards disadvantaged businesses.
Item 6M 192 DBE Triennial Goal FFY 2022-2024 Page 12
RIVERSIDE TRANSIT AGENCY 1825 Third St. Riverside, CA 92507
September 16, 2021
TO: BOARD OF DIRECTORS
THRU: Larry Rubio, Chief Executive Officer
FROM: Natalie Zaragoza, Chief Procurement and Logistics Officer
SUBJECT: Authorization to Award Agreement No. 21-043 to ND Construction Co., Inc. for Transit Enhancements to Seven Bus Stop Locations
Summary: On January 24, 2019, the Board Executive Committee authorized staff to enter into an agreement with Wakeland Housing and Development Corporation (Wakeland) to support their grant application for their project entitled “Mission Heritage Plaza”. Wakeland is a development corporation specializing in the creation and operation of affordable housing within California. The application provided for a new construction, mixed-use project at the corner of Mission Inn Avenue and Fairmount Boulevard in downtown Riverside and would consist of a three-story building, a five-story building and on-grade parking.
The Affordable Housing and Sustainable Communities (AHSC) grant program is a competitive program that provides funding for land-use, housing, transportation and land preservation projects that reduce greenhouse gas emissions. The AHSC program is administered by the State of California’s Strategic Growth Council and implemented by the Department of Housing and Community Development. To be successful, grant applications must include a transit component as a part of the project.
To satisfy the transit component requirement, the Wakeland grant application included a request for funds for enhancements to seven of the Agency’s bus stops located within the Mission Heritage Plaza project area. The project had been approved by the City of Riverside on October 17, 2017 and the specific bus stop locations were reviewed by Agency staff for compliance with its Bus Stop Strategic Policy.
On July 8, 2019, the grant for Wakeland’s Mission Heritage Plaza project was awarded; included in that award was funding for the enhancements to the Agency’s seven bus stop locations. Each stop is to be upgraded
Item 6N 193 with a new shelter, bench and trash receptacles with the successful contractor providing installation of the amenities as well as the needed civil improvements to ensure the American with Disabilities Act compliance of each stop. The specific list of bus stops is shown in Attachment 1.
On July 14, 2021 staff issued Invitation for Bids (IFB) No. 21-043. The IFB was publicly advertised in a newspaper of general circulation and a notice was posted on the Agency’s website along with a copy of the IFB document. The Agency also sent notices of the contracting opportunity to the local chambers’ of commerce in cities that are members of the Joint Powers Agreement.
On August 11, 2021 the Agency received bids from the following three (3) firms:
ND Construction Co., Inc., Anaheim, CA $110,386.50 BWW & Company Inc., Redlands, CA $151,176.00 S&H Civilworks, Colton, CA $223,185.00
Staff reviewed the low bidder’s submittal to ensure compliance with the requirements of the IFB. Based on a thorough review, staff recommends awarding a contract to ND Construction Co., Inc., the lowest responsive and responsible bidder.
In addition to the proposed amount, staff also recommends the Board authorize a ten-percent contingency of $11,038.65 to be utilized in the event of unforeseen circumstances. Such use would be subject to a future change order or amendment to the proposed contract if necessary.
Fiscal Impact:
Sufficient funds to cover this request are included in the Agency’s Board approved capital budget. The funding profile is shown below:
Affordable Housing and Sustainable Communities (AHSC) Total
$121,425.15 *
* Amount Includes Ten-Percent Contingency
Committee Recommendation:
This item was discussed at the Board Budget and Finance Committee meeting on September 1, 2021. The Committee members unanimously approved and recommended this item to the full Board of Directors for their consideration.
Item 6N 194
Recommendation:
Authorize staff to award Agreement No. 21-043 to ND Construction Co., Inc. for transit enhancements to seven bus stop locations in the amount of $110,386.50 with a ten-percent contingency of $11,038.65 for a total project budget amount of $121,425.15.
Item 6N 195
Attachment 1 List of Seven Bus Stops within the Defined Project Area
1. University Avenue and Kansas – Westbound
2. University Avenue and Kansas – Eastbound
3. University Avenue and Eucalyptus – Westbound
4. University Avenue and Eucalyptus – Eastbound
5. University Avenue and Park – Westbound
6. University Avenue and Park – Eastbound
7. Orange at Salvation Army Apts near Twogood Lane - Westbound
Item 6N 196 RIVERSIDE TRANSIT AGENCY 1825 Third Street Riverside, CA 92507
September 16, 2021
TO: BOARD OF DIRECTORS
THRU: Larry Rubio, Chief Executive Officer
FROM: Natalie Zaragoza, Chief Procurement and Logistics Officer
SUBJECT: Authorization to Cancel the Award of Agreement No. 21-007 to Genfare for the Development and Implementation of the Agency’s Mobile Ticketing Application (App)
Summary: On February 4, 2021, the Agency issued Request For Proposals (RFP) No. 21-007 for the development and implementation of the Agency’s Mobile Ticketing App. As a result of the procurement, staff recommended and the Board approved an award to Genfare for this project at their July 22, 2021 meeting.
One very important requirement of staff’s recommendation was the ability of Genfare to complete the installation of the validators and implement the app by the spring school term of January 2022. Specifically, the Genfare proposal included a project timeline with validators available for installation three months after project award which provided sufficient time to complete the project by December 2021.
On August 9, 2021, staff was notified that before Genfare would sign the Agreement, they wanted to discuss the project schedule and implementation timeline. On August 19, 2021, Genfare provided a new project schedule with the installation of the validators occurring during the last week in February 2022. The reason given for this delay was that the demand for validators has increased due to a surge in demand for contactless payment systems by many transit agencies and that this increase has overwhelmed Genfare’s validator manufacturer with a backlog of orders.
If the Agency were to accept the revised implementation timeline from Genfare, the new validators would not be installed in time for the spring school term in January 2022. Further discussions with Genfare on August 19 did not give staff the confidence in Genfare’s ability to provide validators by February 2022. Any further delays in the delivery of the validators would extend the installation of the mobile ticketing validators and implementation of the app into the fall or winter of 2022.
Item 7 197 Over the past few years, technology has evolved so that newer models of fareboxes now have integrated mobile ticketing validators. Utilization of newer model fareboxes with integrated validators would enable the Agency to update its entire farebox system and implement a new mobile ticketing app at the same time. These newer fareboxes would replace the almost 20- year-old fareboxes in the Agency’s existing fixed route vehicles.
After internal discussions and a careful review of the above information, staff determined the best course of action would be to seek authorization from the Board to cancel the award to Genfare. Staff would then proceed with a new procurement for replacement fareboxes having the added enhancement of integrated mobile ticketing validators. It is anticipated that staff will bring an agenda item to the January 2022 Board of Directors’ meeting for newer model fareboxes to be installed and a new mobile ticketing app to be implemented by the fall of 2022.
As a result of the above and after consulting with general counsel, staff is recommending the cancellation of the July 22, 2021, Board of Directors award of Agreement No. 21-007 to Genfare.
In the interim, the Agency will continue using the Token Transit mobile ticketing validators and app. The current Agreement with Token Transit is in effect through June of 2022. Staff will negotiate for additional months of use as needed to ensure a smooth transition from the current mobile ticketing app to a new fully integrated mobile ticketing solution.
Fiscal Impact:
None.
Recommendation:
Authorize staff to cancel the award of Agreement No. 21-007 to Genfare for the procurement, development, and implementation of mobile ticketing validators at a contract value of $823,882 over a five-year period.
Item 7 198 RIVERSIDE TRANSIT AGENCY 1825 Third Street Riverside, CA 92507
September 16, 2021
TO: BOARD OF DIRECTORS
THRU: Larry Rubio, Chief Executive Officer
FROM: Natalie Zaragoza, Chief Procurement and Logistics Officer
SUBJECT: Authorization to Cancel the Award of Agreement No. 21-003 to Seon Systems Sales, Inc. (dba Safe Fleet) and Authorize Award of Agreement No. 21-003 to Luminator Technology Group (Luminator) to Install and Configure Replacement Network Video Recorders (NVRs) on 145 Gillig Buses
Summary: On April 22, 2021, the Agency issued Request For Proposals (RFP) No. 21- 003 to install and configure replacement network video recorders (NVR) on the Agency’s 145 Gillig buses. As a result of that procurement, staff recommended, and the Board approved an award to Safe Fleet for the Agency’s replacement NVR project. However, on August 18, 2021, Safe Fleet advised staff that they would not agree to the contractual terms required by the Agency. Therefore, this item is a request to cancel the Board of Directors’ award of Agreement No. 21-003 to Safe Fleet during its July 22, 2021 meeting and authorize an award of Agreement No. 21-003 to Luminator as the next lowest proposing firm.
As background, procurements which are anticipated to exceed $100,000 must use a formal procurement process in accordance with the Agency’s Procurement Policy and Manual approved by the Board at its October 25, 2018 meeting. As stated above, this was an RFP which requires an evaluation based on pre-determined criteria established by staff that are seen as critical to the success of the project; these criteria are identified within the procurement documents that are sent to prospective proposing firms.
The first step in a formal procurement is a virtual pre-proposal meeting. These are held with interested vendors and are an important part of the proposal submittal process. During this meeting staff reviews the important aspects of the project from a technical sense and procurement staff go over important milestones. It should be noted that vendors are strongly encouraged and advised to have their staff thoroughly review the RFP’s proposed form of agreement, with any needed exceptions then included in their proposal submittal. Negotiations are to be complete prior to the award of the Agreement.
Item 8 199 Once proposals are received and reviewed, they are ranked by an evaluation committee and invitations for virtual interviews/product demonstrations are sent out to the top ranked firms. Upon completion of the virtual interviews/product demonstrations, requests for Best and Final Offers are sent to those vendors still under consideration. The importance of the Best and Final Offer request is not only to ensure vendors are including all anticipated costs but also, it is where the Agency responds formally to all contract language exceptions taken by proposing firms within their original proposal submittals.
For this procurement, the pre-proposal meeting was held on March 11, 2021 and proposals were received on April 22, 2021. On May 25, 2021 requests for Best and Final Offers were sent to both Safe Fleet and Luminator that included the Agency’s response to each firm’s contract exception(s) and again stating that there would be no further negotiations of contract language. On June 1, 2021, Best and Final Offers were received from both firms; it should be noted that the pricing submittal received from Safe Fleet made no mention of it being contingent upon further negotiations of contract language.
After a final check of all documentation, staff moved forward with an item at the July meeting of the Board of Directors recommending award to Safe Fleet. On August 18, 2021, staff was made aware that Safe Fleet was refusing to sign the Agreement unless changes were made to the form of Agreement.
On August 24, 2021, an email was received from Safe Fleet stating they would sign the Agreement unchanged but that, notwithstanding the language of the Agreement, it was their understanding that the intent of the parties was memorialized in their August 24 email. The email set forth Safe Fleet’s interpretation of ownership of work product and the process for disputes under the Agreement. As noted above, the Agency’s May 25, 2021 request to Safe Fleet for a Best and Final Offer denied the exception related to work product; Safe Fleet did not bring up their unwillingness to accept the disputes clause in the Agreement until after the Board’s award.
It is not a policy or practice of the Agency to agree to terms stated separately from an Agreement; such an action would not be in the best interest of the Agency. As a result of the above and after consulting with general counsel, staff is recommending the cancellation of the July 22, 2021, Board of Directors award of Agreement No. 21-003 to Seon Systems Sales, Inc. (dba Safe Fleet).
Since the need for replacement NVRs on the Agency’s 145 Gillig buses remains, staff is also recommending an award of Agreement No. 21-003 to Luminator as the next best value for the Agency’s NVR replacement project. This recommendation is based upon the overall evaluation process of technical review, interview/product demonstration, price analysis and
Item 8 200 reference checks. As an additional note, the evaluation committee’s technical ranking of Luminator was very close to that of Safe Fleet; the difference in pricing between the proposals is as shown below. Finally, it should be noted that Luminator has no issues with the Agreement and is ready and willing to sign that document.
Firm Name/Location Total Amount
Seon Systems Sales Inc. (dba Safe Fleet), $571,333.25 Coquitlan, B.C. Luminator Technology Group, Plano, TX $586,121.18
Staff also recommends a five-percent contingency in the amount of $29,306.06 be added to the project budget for use in the event of unforeseen circumstances. Such use would be subject to a future change order or amendment to the proposed agreement if necessary.
Fiscal Impact:
Sufficient funds to cover this request are included in the Agency’s Board approved capital budget. The funding profile is shown below:
California SB1-State of Good Repair funds
$615,427.24*
* Amount Includes Five-Percent Contingency
Recommendation:
• Authorize staff to cancel the award of Agreement No. 21-003 to Seon Systems Sales, Inc. (dba Safe Fleet) in the amount of $571,333.25 with a five-percent contingency of $28,566.66 for a total project budget amount of $599,899.91.
• Authorize staff to award Agreement No. 21-003 to Luminator Technology Group to install and configure replacement network video recorders on 145 Gillig buses in the amount of $586,121.18 with a five-percent contingency of $29,306.06 for a total project budget amount of $615,427.24.
Item 8 201 RIVERSIDE TRANSIT AGENCY 1825 Third Street Riverside, CA 92507
September 16, 2021
TO: BOARD OF DIRECTORS
THRU: Larry Rubio, Chief Executive Officer
FROM: Kristin Warsinski, Director of Planning
SUBJECT: Approve the Vine Street Mobility Hub Final Design and Authorize the Procurement of Construction Services
Summary: The City of Riverside’s General Plan 2025 identified Vine Street as one of the preferred locations within downtown Riverside for a new mobility hub due to its proximity to the Riverside-Downtown Metrolink station, major employment centers, county and city government centers, University of California, Riverside (UCR), Riverside Community College (RCC), the Convention Center, multiple entertainment venues and urban housing complexes.
In November 2019, the Vine Street Mobility Hub Conceptual Plan project was awarded to Psomas. After extensive public outreach efforts, the Conceptual Plan was presented and approved by the Board of Directors on July 23, 2020 and staff was authorized to procure Architectural and Engineering (A&E) services. The Vine Street Mobility Hub A&E project was awarded to Psomas at the December 17, 2020 Board of Directors meeting. The Project Development Team (PDT) was assembled and included representatives from Psomas, their subcontractors, RTA and the City of Riverside. During the A&E phase, additional community outreach was completed to inform the public and solicit feedback on the project. Due to the COVID-19 pandemic, outreach was completed virtually from April 15- 20, 2021 and from August 5-11, 2021. The virtual meeting room was visited 209 times during final design and 23 surveys were collected.
The Vine Street Mobility Hub includes 16 bus bays to accommodate current and future RTA bus service, and associated facilities, including a coach operator’s lounge, security office, storage area, restrooms, staff parking, community plaza, shade structures and greenspace. The plans also include charging infrastructure for RTA’s electric staff vehicles. The site is split into two central bus islands, each with custom overhead shelters and other rider amenities including seating areas, trash receptacles, an information kiosk, real-time messaging signs, directional signs, lighting, closed-circuit television cameras and bike storage. The overhead canopies will also
Item 9 202 include solar panels and lighting to minimize energy demand.
Approval of the Vine Street Mobility Hub Final Design will enable RTA staff to proceed with the construction procurement. Construction of the Vine Street Mobility Hub will be funded with a mixture of federal, state and local funding and the construction contract will be brought forward for the Board’s consideration in the coming months.
Fiscal Impact:
There is no fiscal impact associated with approval of the Vine Street Mobility Hub Final Design.
Committee Recommendation:
This item was discussed at the Board Administration and Operations Committee meeting on September 1, 2021. The Committee members unanimously approved and recommended this item to the full Board of Directors for their consideration.
Recommendation:
• Approve the Vine Street Mobility Hub Final Design.
• Authorize staff to release the Invitation for Bids (IFB) for construction of the facility.
Item 9 203 Item 9 204 ST ST 12TH 13TH
DOWNTOWN
MULBERRY ST
EASTSIDE
Future Hub Location ST 10TH
VINE STREET MOBILITY HUB
VINE ST
METROLINK STATION Feet 0 50 100 Item 9 205 Item 9 206 Bus Loading and Shelters Pedestrian Areas
Item 9 207 Site Safety and Information Public Art
Item 9 208 Item 9 209 Item 9 210 ONLINE PUBLIC WORKSHOP • MOBILITY HUB Learn about the final design of the Vine Street Mobility Hub •
WHEN
WHERE
vinestmobilityhub.com
vinestmobilityhub.com
CONTACT INFORMATION (951) 565-5136
Item 9 211 Item 9 212 Item 9 213 Item 9 214 Item 9 215 Item 9 216 PHOTOVOLTAIC PANEL
Item 9 217 STORAGE
Item 9 218 Light Poles located throughout Site
Low DecorativeWalls
Vertical Sculpture Elements located in ParkArea and on Bus Platforms
Shade Structure in Long-Term Waiting/Community ParkArea
Item 9 219 Lithocrete Representation of the Santa Anna River Corridor
4-ft flat perforated bench
Item 9 220 BENCHES TRASH/RECYC L ING 4’ STEEL ACCENT FENCE WATER FOUNTAIN COLOR FINISH* ON M O S T 36 total units 10 total units 988.05 linear feet 3 total units METAL SURFACES For most metal surfaces. Dunn Edwards™ DE6392 Mink Keystone Ridge Park Warehouse all steel perforated Bench Harmony Dual Recycle/Litter Receptacle Water Bottle Filling Station & Drinking Fountain Dark Bronze Finish
6’ STEEL SECURITY FENCE 988.05 linear feet
BIKE RACK BIKE LOCKERS 6 total units DRIVER’S BREAK TABLE 2 groups of three 1 unit Victor Stanley Cycle Sentry Bike Rack DURA DL1 Single Bike Locker with Central Steel Plaque for Signage 39” wide x 75” long Outdoor Creations Tubular Steel for two bikes Concrete Round Picnic Table
6’ TALL PERIMETER FENCE 478.89 linear feet
On-Demand Bike Parking, uses pad lock handle for commuters to use their own locks.
MODEL #107s-U 71” diameter with optional umbrella hole Written vertically: RTA VINE STREET
Item 9 221 Item 9 222 Park ID Monument Vehicular Directional Project ID Monument
No Entry RTA Buses Only Vine Street Community Park Vine Street Mobility Hub
Information Kiosk Pedestrian Directional Bus Stop ID Floor Graphic
VINE STREET VINE STREET
Bus Bays 1-16
Community Park
South Hospital Main Entrance
Item 9 223 Digital Sign
Exterior ADA Restroom ID
STAFF STAFF RESTROOM RESTROOM
stastaffff rereststrroomoom
Digital Sign 5' RESTROOM - 0 " r e s t r o o m
Regulatory Signs Building ID
UNAUTHORI ZED VEHICLES PARKED I N DESI GNAT ED ACCESSI BLE SPACES NOT DISPLAYING DISTINGUISHING PLACARDS OR SP ECIAL LI CENSE PLATES I SSUED FOR PERSONS WITH DI SABILITIES P WI LL BE TOW ED AWAY AT THE OWNER'S EXPENSE TOW ED VEHI CLES PASSENGER M AY BE RECLAI M ED AT ( I n s e r t A d d r e s s) DROP-OFF OR BY TELEPHONI NG SECURITY ( I n s e r t Te l e p h o n e N u m b e r ) ONLY
Item 9 224 Item 9 225 Item 9 226 Item 9 227 Item 9 228 WE AREHERE
Item 9 229 Item 9 230 Item 9 231