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Measure C Citizen Oversight Committee Meeting Annotated Agenda


Thursday, June 13, 2019
5:00 PM

COG Ash Conference Room
2035 Tulare St., Suite 201, Fresno, CA

TOLL FREE NUMBER: 888-398-2342


Americans with Disabilities Act (ADA) Accommodations
The Fresno COG offices and restrooms are ADA accessible. Representatives or individuals with disabilities should contact Fresno COG at (559) 233-4148, at least 3 days in advance, to request auxillary aids and/or translation services necessary to participate in the public meeting / public hearing. If Fresno COG is unable to accommodate an auxiliary aid or translation request for a public hearing, after receiving proper notice, the hearing will be continued on a specified date when accommodations are available.


About Presentations:

This portion of the meeting is reserved for persons wishing to address the Committee on items within its jurisdiction but not on this agenda. 

Note:  Prior to action by the Committee on any item on this agenda, the public may comment on that item.  Unscheduled comments may be limited to 3 minutes.

II.Minutes of March 14, 2019 Meeting of the Measure C Citizen Oversight Committee

Action: Review and approve, or approve with edits, the March 14, 2019 Oversight Committee minutes.

III.Fiscal Year 2017-2018 FCTA Audit

Dedekian, George, Small & Markarian Accountancy Corporation retained by the Authority to perform our fiscal year 2017-2018 audit of finances, has recently completed their analysis and submitted the final report, which is included in the agenda package.  In summary the firm found no material weakness concerning internal control over financial reporting and no instances of noncompliance with laws, regulations, contracts or grant agreements. 

Action: Receive, review and comment.

IV.Fiscal Year 2015 - 2016 and 2016 - 2017 Local Agency Audits

Dedekian, George, Small and Markarian, Accountancy Corporation was retained by the Authority to perform the audit of finances on all local agencies receiving Measure C Extension revenue as required in the 2006 Measure C Extension Expenditure Plan.  The firm has recently completed their analysis and submitted the final reports for fiscal years ending June 30, 2016 and June 30, 2017, which have been provided to you on a flash drive.  In summary the firm stated that overall, local agencies continue to adhere to the record keeping and reporting requirements, as well as expending Measure C funds in accordance with provisions of the Measure C Transportation Sales Tax Extension. The firm did locate a few matters that are opportunities for strengthening internal controls and operating efficiency.  Staff has reviewed and will implement their recommendations. The agencies included in these reports represent all local jurisdictions in Fresno County with the exception of the City of Coalinga’s FY17 Audit.  Coalinga’s 2017 audit will be provided with the FY 2018 audits next year. Specifically, the audits cover:

FCTA audits of local agencies are dependent on agency audits. Some agency audits were not completed in time to provide the 2016 results last year so they are provided here with the 2017 audits.

These audits can be accessed on the Measure C website

Action: Receive, review and comment.

V.Fiscal Year 2019 - 2020 Measure C Revenue Estimates

Each year Authority staff requests independent estimates of the coming year’s sales tax revenue from the Fresno County Auditor-Controller/Treasurer-Tax Collector’s office and the Authority’s Financial Advisor, Montague, DeRose and Associates to establish pass-through allocations and form the basis for the Authority’s budget.  Upon receipt of these independent estimates staff attempts to develop a consensus forecast taking into consideration the opinions of both financial advisors related to the upcoming economic climate.  The results of this process are an estimated 3.75% increase in FY2019-20 to actual FY2018-19 revenues.  Both financial advisors to the Authority concur with this forecast as evidenced by the attached correspondence from each. 

Action: Receive, review and comment.

VI.Fiscal Year 2019 - 2020 Measure C Resolution of Allocation 2019-01

California Public Utilities Code Section 142257 provides that the 2006 Measure C Extension Expenditure Plan, which was approved prior to and provided the basis for the ballot measure considered by the voters at the November 7, 2006 election, shall specify the amount and the formula by which the retail transactions and use tax shall be allocated to each participating jurisdiction for Local Transportation Purposes determined to be priority projects by local governments to which funds are allocated. The 2006 Measure C Extension Expenditure Plan creates a number of transportation programs to be funded by participating jurisdictions with Measure C funds passed-through from the Authority to the jurisdiction submitting eligible project claims. 

Consistent with adopted policy for administration of the funds, the Authority requested and received the annual estimate of Measure C funds from the Fresno County Auditor-Controller/ Treasurer-Tax Collector.

Based upon the annual estimate of total street miles from the California Department of Transportation, the annual estimate of population from the California Department of Finance, and the Measure C allocation formula as dictated by the 2006 Measure C Extension Expenditure Plan, the attached estimate of available funds and the annual apportionments has been calculated.

Action: Receive, review and comment

VII.Fiscal Year 2019 - 2020 Annual Budget for the Original Measure C 1987-2007

The Measure C Original Budget is provided to you as a courtesy and does not fall under the pervue of the Citizen Oversight Committee.

This proposed 2019-20 Original Measure C budget has no estimated sales tax revenue during the fiscal year due to the expiration of the original Measure C sales tax levy in 2007. However, it is estimated to gain $920,000 in interest revenue which will be used to fund the remaining urban and rural projects.  Since there will be no sales tax revenue from the original Measure, the administration expenses related to the original Measure will be funded with administrative reserves which are on deposit with the Auditor-Controller/Treasurer-Tax Collector.  This reserve accumulated over the 20 years of the original Measure C to fund the transition to an extension of the tax measure, or to finance Authority close-out costs if the Measure were to have expired. Use of these funds to cover the administrative costs of on-going original Measure C projects is consistent with the intended use of these accumulated funds.  The proposed method of financing the administrative budget has been reviewed and accepted by Authority Legal Counsel and the Auditor-Controller/Treasurer-Tax Collector’s office.  All of the expenditures in this 2019-20 Original Measure C budget are needed to fund services and supplies required to support delivery of the original Measure’s remaining projects. 

Action: Receive, review and comment

VIII.Fiscal Year 2019 - 2020 Annual Budget for the Extension Measure C 2007-2027

This proposed 2019-20 Measure C Extension budget includes the estimated revenue to be received during the 2019-20 fiscal year resulting from the extension of the original Measure C sales tax levy.  The total estimated tax revenue is $82,230,980.  This revenue estimate reflects a conservative continuation of a recovery from the weak economy that impacted tax revenue over the past 8 years in that it represents a 3.75% increase from the 2018-19 actual revenues.

This Measure C Extension revenue projection is the result of a collaborative effort between the Fresno County Auditor-Controller/Treasurer-Tax Collector’s office and the Authority’s financial advisor, Montague DeRose Associates, which took into consideration both Statewide financial expectations and the historic pattern of previous economic recoveries in the Central Valley.

The proposed administrative salary, benefits and administrative support cost budget request is $472,058. This proposed Administrative budget reflects 100 % of the cost of two employees (the Executive Director and the Contracts Administrator) and 25% of the cost of one employee (the Program Manger) at the currently approved salary structures. The remaining 75% of the Program Manager’s salary is funded through the original Measure C as the majority of the projects she is managing were original Measure C projects.

FCTA has the smallest actual staffing level (three people) of any Self-Help County in the state.  This constrained staffing results in the Authority spending less than allowable by the Measure for salary and benefits.

The Administrative Budget also is sharing all office expense and support services needed to fulfill the Administrative duties of all three employees at a 70% Extension/30% Original split.  As with prior years, the balance of the 1% of total revenues allowed for Administration costs by the enabling legislation is recommended to be reserved to build up a fund to finance agency closedown or transition to another Extension in 2027.

The 2019-20 Extension budget also proposes Services and Supplies expenditures in the amount of $771,262.  This budget category provides the services needed to deliver theoverall Measure C Program and for the most part reflects actions previously approved by the Board.  Where appropriate, Services and Supplies expenses are prorated between the

FCTA Original Measure and the Extension to reflect actual service to each.  

Action: Receive, review and comment

IX.Fiscal Year 2019 - 2020 Annual Regional Transportation Mitigation Fee Budget

The RTMF revenue projection is the result of a collaborative effort between the Fresno County Auditor-Controller/Treasurer-Tax Collector’s office and RTMF Agency staff, which took into consideration projected development activity in Fresno County during the 2019-20 fiscal year.  The fee income identified in this budget is the result of applying the current RTMF fee schedule to the development activity estimated to take place during the upcoming fiscal year.

There are no proposed administrative salaries, benefits, or support costs proposed in this budget because the fee is calculated and collected by the RTMF Agency.  Costs associated with RTMF Administration are also covered by a separate fee imposed and collected by the RTMF Agency.

Fresno County has been fortunate to receive unanticipated State and federal grants for local transportation projects.  Although these grants allowed for early delivery of projects, they required local matching funds, some of which were planned to be funded through the RTMF fee revenue. However, due to the recession, sufficient RTMF funds had not yet been collected.  Rather than forgo the grant funding, COG and the Authority chose to deliver those projects using money loaned to the RTMF fund from the original and extension Measure C funds.  This budget reflects principal and interest payments on prior year loans, as well as a new loan to cover an anticipated shortfall in the RTMF funding necessary to meet 2019-20 project expenditures.

Action: Receive, review and comment

X.Items from Staff

A.  Upcoming 2019 COC tentative meeting dates:

  • August 8, 2019
  • September 12, 2019
  • October 10, 2019
  • November 14, 2019

B.  Items for next agenda

C.  Upcoming Meetings of other related Boards/Committee

  • COG Standing Committee meetings
  • FCTA Board Meetings

XI.Items from Members