Audit Committee
April 11, 2022

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www.modestogov.com
AGENDA
City of Modesto

SPECIAL AUDIT COMMITTEE /COUNCIL WORKSHOP
Held Via Teleconference
(To Access Meeting Please See Instructions Below)
Monday, April 11, 2022 at 9:00 AM
*Roll Call: Sue Zwahlen, Chair
David Wright, Vice-Chair
Jenny Kenoyer, Member
Alternates: Rosa Escutia-Braaton, Tony Madrigal, Chris Ricci, Bill Zoslocki * Please Note: In order to respond to COVID-19, and pursuant to AB 361, the City will hold this meeting via teleconference and Committee Members will be calling in.

THIS MEETING WILL NOT BE PHYSICALLY OPEN TO THE PUBLIC
In order to minimize the spread of the COVID-19 virus, this meeting will be conducted pursuant to AB 361, which amended the Brown Act’s teleconferencing provisions and will not be physically open to the public. You may observe and participate in the meeting via teleconference as indicated below.

PARTICIPATING IN COMMITTEE MEETINGS IN CONFORMANCE
WITH AB 361
The City of Modesto is providing alternatives to observe and participate in Committee meetings.

If you wish to make either a general public comment or to comment on a specific agenda item, you may use one of the following options:

SUBMITTING COMMENTS BY E-MAIL
Written comments may be submitted via email to: [email protected] (include Agenda Item Number in the subject line). All comments will be shared with the Committee Members and placed in the record, but will not be read aloud during the meeting. Written comments must be received by 8:00 a.m. on the day of the meeting. - 1 -
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VIRTUAL PARTICIPATION BY ZOOM VIDEO

CONFERENCING AND TELEPHONE
Joining the Committee meeting via Zoom
The City of Modesto is now offering the ability to view and participate in Committee meetings via telephonic conferencing via “Zoom” video conferencing computer technology. The meeting may be accessed through the use of Zoom using the following options:
 Enter the following link into an Internet Browser
https://us02web.zoom.us/j/86945970570,
 Enter the following link into an Internet Browser https://zoom.us/ and using the Webinar ID 869 4597 0570
 Passcode 84326
To use Zoom, please visit: https://zoom.us/ and either sign-up for a free Zoom account or continue as a guest. Once you have downloaded the app onto your mobile device, joined from your web browser, or downloaded the Zoom software on your computer you will be ready for the upcoming Committee meeting.

Joining the Committee meeting via Telephone
If you don’t have a smart phone or computer to access the meeting via Zoom, you can participate by phone, by calling 1-877-853-5257 (Toll Free) or 1-888-475-4499 (Toll Free) and enter the Webinar ID 869 4597 0570 Passcode 84326
Providing Public Comment on Zoom and by Telephone
The Committee Chairman will request public comment during the Public Comment periods on the meeting agendas and during each Regular Calendar Item on the Committee Agenda. Once the Chairman has announced the public comment period, please do one of the following.

USING A COMPUTER OR SMART PHONE APP:
 Click on the “Raise Hand” feature in the webinar controls. This will notify City staff that you have raised your hand.
 City staff will unmute your microphone when it is your turn to provide public comment.
 A prompt will appear to confirm you would like to be unmuted and then you will have three minutes to provide public comment.
 Once your public comment has ended, you will be muted again.

USING A REGULAR PHONE (not using a computer or smart phone APP):
 Dial *9 (star 9), this will notify City staff that you have “raised your hand” for public comment.
 City staff will unmute your microphone when it is your turn to provide public comment.
 You will hear “you are unmuted” and then you will have three minutes to provide public comment.
 Once your public comment has ended, you will be muted again. - 2 -
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 If your phone is unmuted, and you are unable to be heard, the host may ask that you Dial *6 to toggle mute on/off in Zoom.

Additional Zoom resources/support
Please visit Zoom’s website support page on helpful tips to prepare for the meeting:
https://support.zoom.us/hc/en-us/categories/201146643

PUBLIC COMMENTS
Please refer to special public comment instructions above.

Three minute time limit per speaker
Only interested persons in the audience may present these matters. Under State law, Committee members may respond to matters being presented under this item only as follows:
a. Briefly respond to statements made or questions raised. b. Ask a question for clarification.
c. Provide a reference to staff or other resources for factual information. d. Request staff to report back at a subsequent meeting. e. Finally, a Committee member or the Committee itself may take action to direct staff to place a matter of business on a future agenda.

CONSENT ITEMS – ROLL CALL VOTE REQUIRED:

Information concerning the consent items listed below has been forwarded to each Committee member prior to this meeting for study. Unless some member of the audience or Committee member has a question concerning an item and asks that it be withdrawn from the consent list, the Committee approves the items at one time. The action taken by the Committee in approving consent items is set forth in the explanation of this individual item.

Any and all of the following agenda items are subject to action by the Modesto City Council.

This Agenda is on file at the Modesto-Stanislaus Library Reference Room, 1500 I Street, Modesto, in the City Clerk’s Office, Sixth Floor, 10th Street Place, and is available on the City’s Web site at www.modestogov.com.

In accordance with the requirements of Title II of the Americans with Disabilities Act (“ADA”) of 1990, the Fair Employment & Housing Act (“FEHA”), the Rehabilitation Act of 1973 (as amended), Government Code section 11135 and other applicable codes, the City of Modesto (“City”) will not discriminate against individuals on the basis of disability in the City’s services, programs, or activities. For more information, please visit the City of Modesto website at https://www.modestogov.com/865/Americans-with-Disabilities-Act-ADA In compliance with the Americans with Disabilities Act, if you need special assistance to - 3 -
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participate in this meeting, please contact the City Clerk (209) 577-5396. Notification 48 hours prior to the meeting will enable the City to make reasonable arrangements to ensure accessibility to this meeting.

NEW BUSINESS

1. Consider accepting the Transportation Development Act Triennial Performance Audit conducted by the Stanislaus Council of Governments (StanCOG) for transit operations and capital expenses, and forwarding to Council for approval. (Funding Source: Transit Funds)
FINANCE DEPARTMENT; Maria Garnica, 209-577-5249,
[email protected]

MATTERS TOO LATE FOR THE AGENDA
These may be presented by members of the Committee and staff upon determination by a majority vote that an emergency exists, as defined by State law, or by a 2/3 vote that (1) there is a need to take immediate action, and (2) that the need for action came to the City’s attention after the agenda was posted.

ADJOURNMENT
Posted pursuant to Government Code Section 54954.2 on the bulletin board at Tenth Street Place on at by
date time signature
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CITY OF MODESTO

COMMITTEE AGENDA REPORT
DATE OF MEETING:

April 11, 2022
Date: March 14, 2022
TO: Audit Committee
Sue Zwahlen, Chair
David Wright, Vice Chair
Jenny Kenoyer, Member
THROUGH: Joseph P. Lopez, City Manager
FROM: DeAnna Christensen, Director of Finance
Bill Sandhu, Public Works Director
SUBJECT: Transportation Development Act - Triennial Performance Audit CONTACT: Maria Garnica, Accounting Manager, [email protected], (209) 577- 5249
DESCRIPTION:

Consider accepting the Transportation Development Act Triennial Performance Audit conducted by the Stanislaus Council of Governments (StanCOG) for transit operations and capital expenses, and forwarding to Council for approval. (Funding: Transit Funds) STRATEGIC PLAN ELEMENT:

This item supports the City of Modesto 2020-2025 Strategic Plan focus of Governance and Service Delivery under Goal D. Ensure Safe, Efficient, and Reliable Infrastructure BACKGROUND:

The Transportation Development Act (TDA) of 1971 is a funding mechanism administered by the California Department of Transportation (Caltrans) through Regional Transportation Planning Agencies1 (RTPA). In Stanislaus County, the RTPA is Stanislaus Council of Governments2 (StanCOG). As the RTPA, StanCOG programs and administers TDA funds to the local jurisdictions for transit and non-transit projects. TDA funds are expended for StanCOG administration and planning of public transportation, distribution to local jurisdictions for operations of public transit systems, non-motorized projects, and streets and roads. 1 California Department of Transportation Regional Transportation Planning Agencieshttp://www.dot.ca.gov/hq/MassTrans/Docs-Pdfs/Jarc-NF/Cycle%206/mportparevisedlist011312.pdf 2 Stanislaus Council of Governments - http://www.stancog.org/ #1..
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Transportation Development Act - Triennial Performance Audit

StanCOG is required by the California Public Utilities Code Section (PUC) 992463 to prepare and submit an audit of its performance on a triennial basis to Caltrans as a condition of receiving TDA funding. In addition to StanCOG, each transit operator in the County, including the City, is also subject to these triennial independent audits.

DISCUSSION:

PUC 99246 requires all recipients of TDA Article 4 funding to complete an independent audit on a three-year cycle in order to maintain TDA funding eligibility. In 2021, StanCOG selected Moore & Associates, Inc., to prepare Triennial Performance Audits of itself as the RTPA and the four transit operators to which it allocates TDA funding. Moore & Associates is a consulting firm specializing in public transportation. Selection of the consultant followed a competitive procurement process.

The Triennial Performance Audit (TPA) is designed to be an independent and objective evaluation of the City as a public transit operator, providing operator management with information on the economy, efficiency, and effectiveness of its programs across the prior three fiscal years. In addition to assuring legislative and governing bodies (as well as the public) that resources are being economically and efficiently utilized, the TPA fulfills the requirement of PUC Section 99246(a) that the RTPA designate an entity other than itself to conduct a performance audit of the activities of each operator to whom it allocates TDA funds.

The TDA audit report summarizes key findings and recommendations developed during the TPA of the City’s public transit program for the period Fiscal Year (FY) 2018/19 through FY 2020/21.

During the audit period from FY 2018/19 to FY 2020/21, the City of Modesto operated Modesto Area Express (MAX), which operates within the Modesto Urbanized Area and Salida. Riders can connect with Modesto Altamont Commuter Express (ACE), Modesto Bay Area Rapid Transit (BART) Express, Stanislaus Regional Transit (StaRT), and Amtrak. MAX provided three commuter bus services: Modesto ACE Express, Modesto BART Express, and Stockton Commuter Express. The City also operated Modesto Area Dial-A-Ride (MADAR), a door-todoor, curb-to-curb demand-response service available to registered seniors and qualifying disabled residents. On July 1, 2021, (Resolution No. 2021-06) the City of Modesto Transit Division joined with Stanislaus County Regional Transit to form a stand-alone joint power authority (JPA) known as Stanislaus Regional Transit Authority (StanRTA). With the creation of StanRTA, the City of Modesto no longer operates these transit services.

This performance audit was conducted in accordance with generally accepted government auditing standards. Those standards require that the audit team plans and performs the audit to obtain sufficient, appropriate evidence to provide a reasonable basis for its findings and conclusions based on the audit objectives. Moore & Associates has determined that the evidence obtained provides a reasonable basis for the findings and conclusions.

The audit was also conducted in accordance with the processes established by Caltrans, as outlined in the “Performance Audit Guidebook for Transit Operators and Regional Transportation Planning Entities.”
3 California Public Utilities Code Section (PUC) 99246 - https://codes.findlaw.com/ca/public-utilities-code/puc-sect99246.html #1..
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Transportation Development Act - Triennial Performance Audit

The Triennial Performance Audit includes five elements:
 Compliance requirements
 Follow-up of prior report recommendations
 Analysis of program data reporting
 Performance audit
 Functional review
The City met the test of compliance with respect to all TDA regulations.

Status of Prior Recommendations
Moore & Associates reviewed the City’s progress in addressing one recommendation made in the last audit and found that the recommendation was no longer relevant due to the formation of StanRTA. The prior audit recommendation was as follows

1. Prepare a comprehensive Short-Range Transit Plan (SRTP) with a five-to ten-year planning horizon.

Status: No longer relevant.

Findings and Recommendations
Based on discussions with City staff, analysis of program performance, and an audit of program compliance and function, the audit team presents no compliance findings. Moore & Associates identified two functional findings. While the findings do not affect TDA compliance, they were significant enough to be addressed within the report.

The functional findings were as follows

1. The full-time equivalents reported on the State Controller Reports are different from the FTE data calculated using the TDA definition

2. Incorrect performance data was reported on the State Controller Report in 2020/2021 StanRTA is aware of the functional findings in the report, but a plan to remedy these findings has yet to be implemented due to the formation of the agency.

FISCAL IMPACT:

No fiscal impact will result from the acceptance of this Triennial Performance Audit report.

Approved by:

DeAnna Christensen, Director of Finance
Bill Sandhu, Public Works Director
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Transportation Development Act - Triennial Performance Audit

Joseph P. Lopez, City Manager
Attachments:

1. Final Report – Transportation Development Act Performance Audit #1..
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moore
& associates
Stanislaus Council of Governments
FY 2019 - FY 2021
TDA Triennial Performance Audit of
City of Modesto

FINAL REPORT
FEBRUARY 2022
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CITY OF MODESTO
TDA TRIENNIAL PERFORMANCE AUDIT, FY 2019 – FY 2021
Final Report
i
Table of Contents
Chapter 1 | Executive Summary .............................................................1 Chapter 2 | Audit Scope and Methodology ............................................3 Chapter 3 | Program Compliance ...........................................................7 Chapter 4 | Prior Recommendations....................................................13 Chapter 5 | Data Reporting Analysis.....................................................15 Chapter 6 | Performance Analysis ........................................................17 Chapter 7 | Functional Review..............................................................35 Chapter 8 | Findings and Recommendations........................................49 #1..
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CITY OF MODESTO
TDA TRIENNIAL PERFORMANCE AUDIT, FY 2019 – FY 2021
Final Report
ii
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CITY OF MODESTO
TDA TRIENNIAL PERFORMANCE AUDIT, FY 2019 – FY 2021
Final Report
iii
Table of Exhibits
Exhibit 1.1 Summary of Audit Recommendations ....................................................................................2 Exhibit 3.1 Transit Development Act Compliance Requirements .............................................................9 Exhibit 5.1 Data Reporting Comparison................................................................................................. 16 Exhibit 6.1 System Performance Indicators........................................................................................... 21 Exhibit 6.2 System Ridership................................................................................................................. 22 Exhibit 6.3 System Operating Cost/VSH ................................................................................................ 22 Exhibit 6.4 System Operating Cost/VSM................................................................................................ 22 Exhibit 6.5 System VSM/VSH................................................................................................................. 22 Exhibit 6.6 System Operating Cost/Passenger....................................................................................... 23 Exhibit 6.7 System Passengers/VSH ...................................................................................................... 23 Exhibit 6.8 System Passengers/VSM...................................................................................................... 23 Exhibit 6.9 System VSH/FTE .................................................................................................................. 23 Exhibit 6.10 System Farebox Recovery .................................................................................................. 24 Exhibit 6.11 System Fare/Passenger...................................................................................................... 24 Exhibit 6.12 Fixed-Route Performance Indicators.................................................................................. 26 Exhibit 6.13 Fixed-Route Ridership........................................................................................................ 27 Exhibit 6.14 Fixed-Route Operating Cost/VSH....................................................................................... 27 Exhibit 6.15 Fixed-Route Operating Cost/VSM ...................................................................................... 27 Exhibit 6.16 Fixed-Route VSM/VSH ....................................................................................................... 27 Exhibit 6.17 Fixed-Route Operating Cost/Passenger.............................................................................. 28 Exhibit 6.18 Fixed-Route Passengers/VSH............................................................................................. 28 Exhibit 6.19 Fixed-Route Passengers/VSM ............................................................................................ 28 Exhibit 6.20 Fixed-Route VSH/FTE......................................................................................................... 28 Exhibit 6.21 Fixed-Route Farebox Recovery........................................................................................... 29 Exhibit 6.22 Fixed-Route Fare/Passenger.............................................................................................. 29 Exhibit 6.23 Demand-Response Performance Indicators....................................................................... 31 Exhibit 6.24 Demand-Response Ridership............................................................................................. 32 Exhibit 6.25 Demand-Response Operating Cost/VSH............................................................................. 32 Exhibit 6.26 Demand-Response Operating Cost/VSM............................................................................ 32 Exhibit 6.27 Demand-Response VSM/VSH............................................................................................. 32 Exhibit 6.28 Demand-Response Operating Cost/Passenger................................................................... 33 Exhibit 6.29 Demand-Response Passengers/VSH................................................................................... 33 Exhibit 6.30 Demand-Response Passengers/VSM.................................................................................. 33 Exhibit 6.31 Demand-Response VSH/FTE .............................................................................................. 33 Exhibit 6.32 Demand-Response Farebox Recovery ................................................................................ 34 Exhibit 6.33 Demand-Response Fare/Passenger.................................................................................... 34 Exhibit 7.1 Fixed-Route Fare Structure.................................................................................................. 36 Exhibit 7.2 Demand-Response Fare Structure ....................................................................................... 36 #1..
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CITY OF MODESTO
TDA TRIENNIAL PERFORMANCE AUDIT, FY 2019 – FY 2021
Final Report
iv
Exhibit 7.3 Organizational Chart............................................................................................................ 38 Exhibit 7.4 City of Modesto’s Transit Fleet ............................................................................................ 45 Exhibit 8.1 Audit Recommendations..................................................................................................... 50 #1..
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CITY OF MODESTO
TDA TRIENNIAL PERFORMANCE AUDIT, FY 2019 – FY 2021
Final Report
1 Chapter 1 | Executive Summary
In 2021, the Stanislaus Council of Governments (StanCOG) selected Moore & Associates, Inc., to prepare Triennial Performance Audits of itself as the RTPA and the four transit operators to which it allocates TDA funding.

The California Public Utilities Code requires all recipients of Transit Development Act (TDA) Article 4 funding to undergo an independent performance audit on a three-year cycle in order to maintain funding eligibility. Audits of Article 8 recipients are encouraged.

The Triennial Performance Audit is designed to be an independent and objective evaluation of the City of Modesto as a public transit operator, providing operator management with information on the economy, efficiency, and effectiveness of its programs across the prior three fiscal years. In addition to assuring legislative and governing bodies (as well as the public) that resources are being economically and efficiently utilized, the Triennial Performance Audit fulfills the requirement of PUC Section 99246(a) that the RTPA designate an entity other than itself to conduct a performance audit of the activities of each operator to whom it allocates funds.

This chapter summarizes key findings and recommendations developed during the Triennial Performance Audit (TPA) of the City’s public transit program for the period:
• Fiscal Year 2018/19,
• Fiscal Year 2019/20, and
• Fiscal Year 2020/21.

During the audit period, the City of Modesto operated Modesto Area Express (MAX), which is comprised of nineteen local fixed- routes and three commuter routes. The local service operates within the Modesto Urbanized Area and Salida. Riders can connect with Modesto ACE Express, Modesto BART Express, Stanislaus Regional Transit (StaRT), and Amtrak. MAX provided three commuter bus services: Modesto ACE Express, Modesto BART Express, and Stockton Commuter Express. The City also operated Modesto Area Dial-A-Ride (MADAR), a door-to-door, curb-to-curb demand-response service available to registered seniors and qualifying disabled residents.

This performance audit was conducted in accordance with generally accepted government auditing standards. Those standards require that the audit team plans and performs the audit to obtain sufficient, appropriate evidence to provide a reasonable basis for its findings and conclusions based on the audit objectives. Moore & Associates believes the evidence obtained provides a reasonable basis for our findings and conclusions.

This audit was also conducted in accordance with the processes established by the California Department of Transportation (Caltrans), as outlined in the Performance Audit Guidebook for Transit Operators and Regional Transportation Planning Entities.
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CITY OF MODESTO
TDA TRIENNIAL PERFORMANCE AUDIT, FY 2019 – FY 2021
Final Report
2 The Triennial Performance Audit includes five elements:
• Compliance requirements,
• Prior recommendations,
• Analysis of program data reporting,
• Performance Audit, and
• Functional review.

Test of Compliance
Based on discussions with City staff, analysis of program performance, and an audit of program compliance and function, the auditors present no compliance findings.

Status of Prior Recommendations
The prior audit – completed in May 2019 by Moore & Associates, Inc. for the three fiscal years ending June 30, 2018 – included one recommendation:

1. Prepare a comprehensive SRTP with a five- to ten-year planning horizon.

Status: No longer relevant.

Findings and Recommendations
Based on discussions with City staff, analysis of program performance, and a review of program compliance and function, the audit team submits no compliance findings for the City of Modesto.

The audit team has identified two functional findings. While these findings are not compliance findings, the audit team believes they warrant inclusion in this report:

1. The full-time equivalents reported on the State Controller Reports are different from the FTE data calculated using the TDA definition.

2. Incorrect performance data was reported on the State Controller Report in 2020/21.

In completing this Triennial Performance Audit, we submit the following recommendations for the City’s public transit program. They have been divided into two categories: TDA Program compliance recommendations and functional recommendations. TDA program compliance recommendations are intended to assist in bringing the operator into compliance with the requirements and standards of the TDA, while Functional Recommendations address issues identified during the triennial audit that are not specific to TDA compliance.

Given there are no compliance findings, only functional recommendations are provided.

Exhibit 1.1 Summary of Audit Recommendations
Functional Recommendations Importance Timeline
1 Ensure the correctly calculated FTE data is included on the State Controller Report. Medium FY 2021/22
2 Ensure performance data is accurately reported to the State Controller. Medium FY 2022/23
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CITY OF MODESTO
TDA TRIENNIAL PERFORMANCE AUDIT, FY 2019 – FY 2021
Final Report
3 Chapter 2 | Audit Scope and Methodology
The Triennial Performance Audit (TPA) of the City of Modesto’s public transit program covers the threeyear period ending June 30, 2021. The California Public Utilities Code requires all recipients of Transit Development Act (TDA) funding to complete an independent review on a three-year cycle in order to maintain funding eligibility.

In 2021, the Stanislaus Council of Governments selected Moore & Associates, Inc., to prepare Triennial Performance Audits of itself as the RTPA and the four transit operators to which it allocates TDA funding. Moore & Associates is a consulting firm specializing in public transportation, including audits of non-TDA Article 4 recipients. Selection of Moore & Associates followed a competitive procurement process.

The Triennial Performance Audit is designed to be an independent and objective evaluation of the City f Modesto as a public transit operator. Direct benefits of a Triennial Performance Audit include providing operator management with information on the economy, efficiency, and effectiveness of its programs across the prior three years; helpful insight for use in future planning; and assuring legislative and governing bodies (as well as the public) that resources are being economically and efficiently utilized.

Finally, the Triennial Performance Audit fulfills the requirement of PUC Section 99246(a) that the RTPA designate an entity other than itself to conduct a performance audit of the activities of each operator to whom it allocates funds.

This performance audit was conducted in accordance with generally accepted government auditing standards. Those standards require that the audit team plans and performs the audit to obtain sufficient, appropriate evidence to provide a reasonable basis for its findings and conclusions based on the audit objectives. The auditors believe the evidence obtained provides a reasonable basis for our findings and conclusions.

The audit was also conducted in accordance with the processes established by the California Department of Transportation (Caltrans), as outlined in the Performance Audit Guidebook for Transit Operators and Regional Transportation Planning Entities, as well as Government Audit Standards published by the U.S.

Comptroller General.

Objectives
A Triennial Performance Audit (TPA) has four primary objectives:

1. Assess compliance with TDA regulations;

2. Review improvements subsequently implemented as well as progress toward adopted goals;

3. Evaluate the efficiency and effectiveness of the transit operator; and

4. Provide sound, constructive recommendations for improving the efficiency and functionality of the transit operator.
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CITY OF MODESTO
TDA TRIENNIAL PERFORMANCE AUDIT, FY 2019 – FY 2021
Final Report
4 Scope
The TPA is a systematic review of performance evaluating the efficiency, economy, and effectiveness of the transit operator. The audit of the City of Modesto included five tasks:

1. A review of compliance with TDA requirements and regulations.

2. A review of the status of recommendations included in the prior Triennial Performance Audit.

3. A verification of the methodology for calculating performance indicators including the following activities:
• Assessment of internal controls,
• Test of data collection methods,
• Calculation of performance indicators, and
• Evaluation of performance.

4. Comparison of data reporting practices:
• Internal reports,
• State Controller Reports, and
• National Transit Database.

5. Examination of the following functions:
• General management and organization;
• Service planning;
• Scheduling, dispatching, and operations;
• Personnel management and training;
• Administration;
• Marketing and public information; and
• Fleet maintenance.

6. Conclusions and recommendations to address opportunities for improvement based upon analysis of the information collected and the audit of the transit operator’s major functions.

Methodology
The methodology for the Triennial Performance Audit of the City of Modesto included thorough review of documents relevant to the scope of the audit, as well as information contained on the City’s website.

The documents reviewed included the following (spanning the full three-year period):
• Monthly performance reports;
• State Controller Reports;
• Annual budgets;
• TDA fiscal audits;
• Transit marketing collateral;
• TDA claims;
• Fleet inventory;
• Preventive maintenance schedules and forms;
• California Highway Patrol Terminal Inspection reports; • National Transit Database reports;
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CITY OF MODESTO
TDA TRIENNIAL PERFORMANCE AUDIT, FY 2019 – FY 2021
Final Report
5 • Accident/road call logs; and
• Organizational chart.

Given impacts of the ongoing COVID-19 pandemic, the methodology for this audit included a virtual site visit with City representatives on August 16, 2021. The audit team met with Adam Barth (Transit Manager), Dero In (Transit Analyst), Roland Fecteau (Transit Analyst), Angela Swanson (Transit Analyst), David Barr (Fleet Manager), Rosa Garcia-White (General Manager, Storer Transit Systems), Kandi Lomeli (Operations Manager, National Express Transit), Jan Curre (General Manager, National Express Transit), and Phil McGuire (Interim Executive Director, Stanislaus RTA), and reviewed materials germane to the triennial audit.

This report is comprised of eight chapters divided into three sections:

1. Executive Summary: A summary of the key findings and recommendations developed during the Triennial Performance Audit process.

2. TPA Scope and Methodology: Methodology of the review and pertinent background information.

3. TPA Results: In-depth discussion of findings surrounding each of the subsequent elements of the audit:
• Compliance with statutory and regulatory requirements, • Status of prior recommendations,
• Consistency among reported data,
• Performance measures and trends,
• Functional audit, and
• Findings and recommendations.
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CITY OF MODESTO
TDA TRIENNIAL PERFORMANCE AUDIT, FY 2019 – FY 2021
Final Report
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CITY OF MODESTO
TDA TRIENNIAL PERFORMANCE AUDIT, FY 2019 – FY 2021
Final Report
7 Chapter 3 | Program Compliance
This section examines the City of Modesto’s compliance with the Transportation Development Act as well as relevant sections of the California Code of Regulations. An annual certified fiscal audit confirms TDA funds were apportioned in conformance with applicable laws, rules, and regulations. The City considers full use of funds under California Code of Regulations (CCR) 6754(a) as referring to operating funds but not capital funds. The TPA findings and related comments are delineated in Exhibit 3.1.

Status of compliance items was determined through discussions with City staff as well as an inspection of relevant documents including the fiscal audits for each year of the triennium, State Controller annual filings, California Highway Patrol terminal inspections, National Transit Database reports, year-end performance reports, and other compliance-related documentation.

No compliance items were identified for the City of Modesto.

Developments Occurring During the Audit Period
The last half of the audit period is markedly different from the first half. The impacts of the COVID-19 pandemic resulted in significant declines in ridership and revenue. In many instances, transit operators strove to retain operations staff despite adopting a reduced schedule, resulting in significant changes to many cost-related performance metrics. While infusions of funding through the CARES Act mitigated some of the lost revenues for federally funded programs, most transit operators have yet to return to prepandemic ridership and fare levels. As a result, the Triennial Performance Audits will provide an assessment not only of how COVID-19 impacted each organization, as well as how it responded to the crisis.

In addition to the COVID-19 pandemic, recent and proposed changes to the TDA may result in audit reports that look somewhat different than in prior years. In the nearly 50 years since introduction of the Transportation Development Act, there have been many changes to public transportation in California.

Many operators have faced significant challenges in meeting the farebox recovery ratio requirement, calling into question whether it remains the best measure for TDA compliance. In 2018, the chairs of California’s state legislative transportation committees requested the California Transit Association spearhead a policy task force to examine the TDA, which resulted in a draft framework for TDA reform released in early 2020. The draft framework maintains the farebox recovery ratio requirement, but eliminates financial penalties and allows more flexibility with respect to individual operator targets. These changes have yet to be implemented.

Assembly Bill 90, signed into law on June 29, 2020, provided temporary regulatory relief for transit operators required to conform with Transportation Development Act (TDA) farebox recovery ratio thresholds in FY 2019/20 and FY 2020/21. While the ability to maintain state mandates and performance measures is important, AB 90 offered much-needed relief from these requirements for these years impacted by the COVID-19 pandemic while TDA reform continues to be discussed. #1..
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CITY OF MODESTO
TDA TRIENNIAL PERFORMANCE AUDIT, FY 2019 – FY 2021
Final Report
8 AB 90 included the following provisions specific to transit operator funding through the TDA:

1. It prohibited the imposition of the TDA revenue penalty on an operator that did not maintain the required ratio of fare revenues to operating cost during FY 2019/20 or FY 2020/21.

2. It required the Controller to calculate and publish the allocation of transit operator revenue-based funds made pursuant to the State Transit Assistance (STA) Program for FY 2020/21 and FY 2021/22 based on the same individual operator ratios published by the Controller in a specified transmittal memo, and authorized the Controller to revise that transmittal memo, as specified. It required the Controller to use specified data to calculate those individual operator ratios. Upon allocation of the transit operator revenue-based funds to local transportation agencies pursuant to this provision, the Controller would publish the amount of funding allocated to each operator.

3. It exempted an operator from having to meet either of the STA efficiency standards for FY 2020/21 and FY 2021/22 and authorized the operator to use those funds for operating or capital purposes during that period.

4. It required the Controller to allocate State of Good Repair (SOGR) program funding for FY 2020/21 and FY 2021/22 to recipient transit agencies pursuant to the individual operator ratios published in the above-described transmittal memo.

5. It required the Controller to allocate Low Carbon Transit Operations Program (LCTOP) funding for FY 2020/21 and FY 2021/22 to recipient transit agencies pursuant to the individual operator ratios published in the above-described transmittal memo.

Assembly Bill 149, signed into law on July 16, 2021, provided additional regulatory relief with respect to Transportation Development Act (TDA) compliance. It extended the provisions of AB 90 through FY 2022/23 as well as provided additional regulatory relief including:

1. Waiving the annual productivity improvement requirement of Section 99244 through FY 2022/23.

2. Adding a temporary provision exempting operators from farebox recovery ratio requirements provided they expend at least the same amount of local funds as in FY 2018/19.

3. Expanding the definition of “local funds” to enable the use of federal funding, such as the CARES Act or CRRSAA, to supplement fare revenues and allows operators to calculate free and reduced fares at their actual value.

4. Adjusting the definition of operating cost to exclude the cost of ADA paratransit services, demandresponse and micro-transit services designed to extend access to service, ticketing/payment systems, security, some pension costs, and some planning costs.

5. Allowing operators to use STA funds as needed to keep transit service levels from being reduced or eliminated through FY 2022/23.

AB 149 also called for an examination of the triennial performance audit process, to ensure the practice continues to be effective and beneficial.
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CITY OF MODESTO
TDA TRIENNIAL PERFORMANCE AUDIT, FY 2019 – FY 2021
Final Report
9 Exhibit 3.1 Transit Development Act Compliance Requirements Compliance Element Reference Compliance Comments
State Controller Reports submitted on
time. PUC 99243 In compliance
FY 2018/19: January 17, 2020
FY 2019/20: January 29, 2021
FY 2020/21: January 21, 2022
Fiscal and compliance audits submitted
within 180 days following the end of the
fiscal year (or with up to 90-day extension).

PUC 99245 In compliance
FY 2018/19: November 26, 2019
FY 2019/20: November 13, 2020
FY 2020/21: November 24, 2021
Operator’s terminal rated as satisfactory by
CHP within the 13 months prior to each
TDA claim.

PUC 99251 B In compliance
March 1, 2018
March 20, 2019
July 22, 2020
July 21, 2021
Operator’s claim for TDA funds submitted
in compliance with rules and regulations
adopted by the RTPA.

PUC 99261 In compliance
If operator serves urbanized and nonurbanized areas, it has maintained a ratio of fare revenues to operating costs at least
equal to the ratio determined by the rules
and regulations adopted by the RTPA.

PUC 99270.1 Not applicable
Except as otherwise provided, the
allocation for any purpose specified under
Article 8 may in no year exceed 50% of the
amount required to meet the total
planning expenditures for that purpose.

PUC 99405 Not applicable
An operator receiving allocations under
Article 8(c) may be subject to regional,
countywide, or subarea performance
criteria, local match requirements, or fare
recovery ratios adopted by resolution of
the RTPA.

PUC 99405 Not applicable
The operator’s operating budget has not
increased by more than 15% over the
preceding year, nor is there a substantial
increase or decrease in the scope of
operations or capital budget provisions for
major new fixed facilities unless the
operator has reasonably supported and
substantiated the change(s).

PUC 99266 In compliance
Fixed-route
FY 2018/19: +7.30%
FY 2019/20: +0.57%
FY 2020/21: +10.94%
Demand-response:

FY 2018/19: -1.04%
FY 2019/20: -11.00%
FY 2020/21: +19.32%
The increase in the DAR budget
was the transition from a
contractor-owned fleet to a Cityowned fleet, resulting in higher costs for services, materials and
supplies, and labor.

The operator’s definitions of performance
measures are consistent with the Public
Utilities Code Section 99247.

PUC 99247 In compliance
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CITY OF MODESTO
TDA TRIENNIAL PERFORMANCE AUDIT, FY 2019 – FY 2021
Final Report
10 Compliance Element Reference Compliance Comments
If the operator serves an urbanized area, it
has maintained a ratio of fare revenues to
operating cost at least equal to one-fifth
(20 percent).

PUC 99268.2,
99268.4,
99268.1
In compliance
FY 2018/19: 20.66%
FY 2019/20: 20.75%
FY 2020/21: 9.15%
Penalties waived for FY 2020
and FY 2021 due to AB 90 and
AB 149.

If the operator serves a rural area, it has
maintained a ratio of fare revenues to
operating cost at least equal to one-tenth
(10 percent).

PUC 99268.2,
99268.4,
99268.5
Not applicable
For a claimant that provides only services
to elderly and handicapped persons, the
ratio of fare revenues to operating cost
shall be at least 10 percent.

PUC 99268.5,
CCR 6633.5 In compliance
FY 2018/19: 10.03%
FY 2019/20: 10.01%
FY 2020/21: 4.74%
Penalties waived for FY 2020
and FY 2021 due to AB 90 and
AB 149.

The current cost of the operator’s
retirement system is fully funded with
respect to the officers and employees of its
public transportation system, or the
operator is implementing a plan approved
by the RTPA, which will fully fund the
retirement system for 40 years.

PUC 99271 In compliance
The City contracts for its transit
operations. City staff have
retirement benefits through
CalPERS.

If the operator receives State Transit
Assistance funds, the operator makes full
use of funds available to it under the Urban
Mass Transportation Act of 1964 before
TDA claims are granted.

CCR 6754 (a) (3) In compliance
In order to use State Transit Assistance
funds for operating assistance, the
operator’s total operating cost per revenue
hour does not exceed the sum of the
preceding year’s total plus an amount
equal to the product of the percentage
change in the CPI for the same period
multiplied by the preceding year’s total
operating cost per revenue hour. An
operator may qualify based on the
preceding year’s operating cost per
revenue hour or the average of the three
prior years. If an operator does not meet
these qualifying tests, the operator may
only use STA funds for operating purposes
according to a sliding scale.

PUC 99314.6 In compliance
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CITY OF MODESTO
TDA TRIENNIAL PERFORMANCE AUDIT, FY 2019 – FY 2021
Final Report
11 Compliance Element Reference Compliance Comments
A transit claimant is precluded from
receiving monies from the Local
Transportation Fund and the State Transit
Assistance Fund in an amount which
exceeds the claimant's capital and
operating costs less the actual amount of
fares received, the amount of local support
required to meet the fare ratio, the
amount of federal operating assistance,
and the amount received during the year
from a city or county to which the operator
has provided services beyond its
boundaries.

CCR 6634 In compliance
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CITY OF MODESTO
TDA TRIENNIAL PERFORMANCE AUDIT, FY 2019 – FY 2021
Final Report
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CITY OF MODESTO
TDA TRIENNIAL PERFORMANCE AUDIT, FY 2019 – FY 2021
Final Report
13 Chapter 4 | Prior Recommendations
This section reviews and evaluates the implementation of prior Triennial Performance Audit recommendations. This objective assessment provides assurance the City has made quantifiable progress toward improving both the efficiency and effectiveness of its public transit program.

The prior audit – completed in May 2019 by Moore & Associates, Inc. for the three fiscal years ending June 30, 2018 – included one recommendation:

1. Prepare a comprehensive SRTP with a five- to ten-year planning horizon.

Discussion: While the City prepared a “mini” updated SRTP that was adopted in 2018, that Plan only includes improvements through 2020. As elements of that Plan are implemented, the City should prepare a more formal and comprehensive SRTP to provide a comprehensive blueprint for the City to maintain a 20 percent farebox recovery ratio as well as continue to provide appropriate service for the Modesto community.

The auditor recommended the City budget for the development of a formal, comprehensive Short Range Transit Plan to guide program and service development across the next five to ten years.

Progress: This recommendation is no longer relevant. The City’s service was consolidated with the County of Stanislaus (StaRT) under the Stanislaus Regional Transit Authority (Stan RTA). In August 2021, Stan RTA initiated work on a Comprehensive Operational Analysis.

Status: No longer relevant.
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CITY OF MODESTO
TDA TRIENNIAL PERFORMANCE AUDIT, FY 2019 – FY 2021
Final Report
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CITY OF MODESTO
TDA TRIENNIAL PERFORMANCE AUDIT, FY 2019 – FY 2021
Final Report
15 Chapter 5 | Data Reporting Analysis
An important aspect of the Triennial Performance Audit process is assessing how effectively and consistently the transit operator reports performance statistics to local, state, and federal agencies. Often as a condition of receipt of funding, an operator must collect, manage, and report data to different entities. Ensuring such data are consistent can be challenging given the differing definitions employed by different agencies as well as the varying reporting timeframes. This chapter examines the consistency of performance data reported by the City of Modesto, both internally as well as to outside entities during the audit period.
• Operating cost: There were slight variances between operating cost as reported in the three documents reviewed. However, these variances were modest and were likely the result of some costs not being included in some reports.
• Fare Revenue: Fare revenue was fairly consistently reported among all three reports. • Vehicle Service Hours (VSH): In FY 2018/19 and FY 2019/20, vehicle service hours were generally consistently reported in the State Controller and NTD reports, but these differed from the data reported in the monthly reports. It is likely the data from the monthly performance reports reflects unaudited performance data, which resulted in the variance. In addition, the NTD report includes Taxi data, which is not included in the State Controller Report. In FY 2020/21, however, the VSH reported to the State Controller is significantly lower than that reported elsewhere. The origin of this data is unknown, though it is more consistent with the hours operated during an average weekday or Sunday than the annual total as reported elsewhere. • Vehicle Service Miles (VSM): Vehicle service miles were generally consistently reported among all three reports. However, Taxi data was not included in the State Controller Report in FY 2019/20 or FY 2020/21. In addition, demand-response VSM reported in the FY 2020/21 State Controller Report was approximately 17 percent higher than that reported elsewhere. It appears the VSM reported on the State Controller Report represents total vehicle miles, rather than vehicle revenue miles.
• Passengers: Ridership was generally consistently reported in the State Controller and NTD reports, but these differed from the data reported in the monthly reports. It is likely the data from the monthly performance reports reflects unaudited performance data, which resulted in the variance. In addition, in FY 2019/20 and FY 2020/21, the NTD report includes Taxi data, which is not included in the State Controller Report.
• Full-Time Equivalent (FTE) Employees: During FY 2018/19 and FY 2019/20, FTE as reported to the State Controller was not consistent with the FTE methodology and calculation provided during this audit. The methodology reflected the TDA definition, which divides hours worked by 2,000.

The FTE reported to the State Controller was less than the calculated FTE. The cause of the variance is unclear. In FY 2020/21, this data is reported correctly. #1..
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CITY OF MODESTO
TDA TRIENNIAL PERFORMANCE AUDIT, FY 2019 – FY 2021
Final Report
16 Exhibit 5.1 Data Reporting Comparison
FY 2018/19 FY 2019/20 FY 2020/21
TDA fiscal audit $19,233,941 $18,626,908 $22,891,535
National Transit Database $18,399,145 $18,931,777 $23,028,131 State Controller Report $17,889,723 $18,414,643 $20,666,638 TDA fiscal audit $2,678,586 $2,017,339 $1,457,866
National Transit Database $2,678,586 $2,051,518 $1,133,925 State Controller Report $2,678,586 $2,051,519 $1,133,926 Monthly Performance Reports 180,184 193,971 203,639
National Transit Database 193,291 208,903 214,421
State Controller Report 191,767 208,276 7,371
Monthly Performance Reports 2,466,320 2,188,086 2,581,268 National Transit Database 2,229,019 2,399,619 2,515,597 State Controller Report 2,229,019 2,520,124 2,564,335
Monthly Performance Reports 2,089,428 2,056,047 1,158,666 National Transit Database 2,265,448 2,057,603 1,163,627 State Controller Report 2,265,448 2,055,963 1,163,591
State Controller Report 190 204 231
Per TDA methodology 201 221 231
Full-Time Equivalent Employees
Performance Measure System-Wide
Operating Cost (Actual $)
Fare Revenue (Actual $)
Vehicle Service Hours (VSH)
Vehicle Service Miles (VSM)
Passengers
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CITY OF MODESTO
TDA TRIENNIAL PERFORMANCE AUDIT, FY 2019 – FY 2021
Final Report
17 Chapter 6 | Performance Analysis
Performance indicators are typically employed to quantify and assess the efficiency of a transit operator’s activities. Such indicators provide insight into current operations as well as trend analysis of operator performance. Through a review of indicators, relative performance as well as possible inter-relationships between major functions is revealed.

The Transportation Development Act (TDA) requires recipients of TDA funding to track and report five performance indicators:
• Operating Cost/Passenger,
• Operating Cost/Vehicle Service Hour,
• Passengers/Vehicle Service Hour,
• Passengers/Vehicle Service Mile, and
• Vehicle Service Hours/Employee.

To assess the validity and use of performance indicators, the audit team performed the following activities:
• Assessed internal controls in place for the collection of performance-related information,
• Validated collection methods of key data,
• Calculated performance indicators, and
• Evaluated performance indicators.

The procedures used to calculate TDA-required performance measures for the current triennium were verified and compared with indicators included in similar reports to external entities (i.e., State Controller and Federal Transit Administration).

Operating Cost
The Transportation Development Act requires an operator to track and report transit-related costs reflective of the Uniform System of Accounts and Records developed by the State Controller and the California Department of Transportation. The most common method for ensuring this occurs is through a compliance audit report prepared by an independent auditor in accordance with California Code of Regulations Section 66671. The annual independent financial audit should confirm the use of the Uniform System of Accounts and Records. Operating cost – as defined by PUC Section 99247(a) – excluded the following during the audit period2:
• Cost in the depreciation and amortization expense object class adopted by the State Controller pursuant to PUC Section 99243,
1 CCR Section 6667 outlines the minimum tasks which must be performed by an independent auditor in conducting the annual fiscal and compliance audit of the transit operator.
2 Given the passage of AB 149, the list of excluded costs will be expanded beginning with FY 2021/22. #1..
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CITY OF MODESTO
TDA TRIENNIAL PERFORMANCE AUDIT, FY 2019 – FY 2021
Final Report
18 • Subsidies for commuter rail services operated under the jurisdiction of the Interstate Commerce Commission,
• Direct costs of providing charter service, and
• Vehicle lease costs.

Vehicle Service Hours and Miles
Vehicle Service Hours (VSH) and Miles (VSM) are defined as the time/distance during which a revenue vehicle is available to carry fare-paying passengers, and which includes only those times/miles between the time or scheduled time of the first passenger pickup and the time or scheduled time of the last passenger drop-off during a period of the vehicle's continuous availability. 3 For example, demandresponse service hours include those hours when a vehicle has dropped off a passenger and is traveling to pick up another passenger, but not those hours when the vehicle is unavailable for service due to driver breaks or lunch. For both demand-response and fixed-route services, service hours will exclude hours of "deadhead" travel to the first scheduled pick-up, and will also exclude hours of "deadhead" travel from the last scheduled drop-off back to the terminal. For fixed-route service, a vehicle is in service from first scheduled stop to last scheduled stop, whether or not passengers board or exit at those points (i.e., subtracting driver lunch and breaks but including scheduled layovers).

Passenger Counts
According to the Transportation Development Act, total passengers is equal to the total number of unlinked trips (i.e., those trips that are made by a passenger that involve a single boarding and departure), whether revenue-producing or not.

Employees
Employee hours is defined as the total number of hours (regular or overtime) which all employees have worked, and for which they have been paid a wage or salary. The hours must include transportation system-related hours worked by persons employed in connection with the system (whether or not the person is employed directly by the operator). Full-Time Equivalent (FTE) is calculated by dividing the number of person-hours by 2,000.

Fare Revenue
Fare revenue is defined by California Code of Regulations Section 6611.2 as revenue collected from the farebox plus sales of fare media.
3 A vehicle is considered to be in revenue service despite a no-show or late cancellation if the vehicle remains available for passenger use.
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CITY OF MODESTO
TDA TRIENNIAL PERFORMANCE AUDIT, FY 2019 – FY 2021
Final Report
19 TDA Required Indicators
To calculate the TDA indicators for the City of Modesto, the following sources were employed:
• Operating Cost was not independently calculated as part of this audit. Operating Cost data were obtained via NTD reports for each fiscal year covered by this audit. Operating Cost from the reports was compared against that reported in the City’s audited financial reports and State Controller Reports and appeared to be consistent with TDA guidelines. In accordance with PUC Section 99247(a), the reported costs excluded depreciation and other allowable expenses.
• Fare Revenue was not independently calculated as part of this audit. Fare revenue data were obtained via NTD reports for each fiscal year covered by this audit. Fare revenue from the reports was compared against that reported in the City’s audited financial reports and State Controller Reports and appeared to be consistent with TDA guidelines as well as the uniform system of accounts.
• Vehicle Service Hours (VSH) data were obtained via NTD reports for each fiscal year covered by this audit and compared to monthly performance reports. The City’s calculation methodology is consistent with PUC guidelines.
• Vehicle Service Miles (VSM) data were obtained via NTD reports for each fiscal year covered by this audit and compared to monthly performance reports. The City’s methodology is consistent with PUC guidelines.
• Unlinked trip data were obtained via NTD reports for each fiscal year covered by this audit and compared to monthly performance reports. The City’s methodology is consistent with PUC guidelines.
• Full-Time Equivalent (FTE) data were obtained from the City of Modesto for each fiscal year covered by this review. Use of the TDA definition regarding FTE calculation was confirmed; however, it should be noted there was a discrepancy between the FTE calculation provided and what was reported to the State Controller in FY 2018/19 and FY 2019/20.

System Performance Trends
Systemwide, operating cost rose steadily throughout the current and prior audit periods. Between FY 2015/16 and FY 2020/21, there was a net 45.7 percent increase in operating cost. The most significant increase occurred in FY 2020/21, which experienced a 21.6 percent increase. A portion of this increase may be due to the assumption of the Ceres service in FY 2020/21. Fare revenues, however, decreased consistently during the same period. Fare revenues were heavily impacted by the COVID-19 pandemic, resulting in a 57.7 percent decrease during the audit period and a 61.2 percent net decrease over the sixyear span.

Vehicle service hours (VSH) generally increased across the six-year period, for an increase of 10.9 percent during the audit period and a net 13.5 percent increase over the past six years. Vehicle service miles (VSM), on the other hand, were mixed, decreasing during FY 2017/18 and FY 2018/19. This resulted in an increase of 12.9 percent during the audit period, but a net increase of just 4.3 percent since FY 2015/16.

Ridership has been declining for a number of years, but decreased sharply in FY 2020/21 due to the COVID19 pandemic. Overall, ridership decreased by 48.6 percent during the audit period, and 64.1 percent over #1..
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CITY OF MODESTO
TDA TRIENNIAL PERFORMANCE AUDIT, FY 2019 – FY 2021
Final Report
20 the six-year period. Double-digit ridership decreases in FY 2016/17 and FY 2018/19 led to this significant decrease.

Cost-related metrics typically provide an indicator of a system’s efficiency, while passenger-related metrics offer insight into its productivity. Improvements are characterized by increases in passengerrelated metrics and decreases in cost-related metrics. Cost-related metrics generally increased over the audit period, though operating cost per VSH and operating cost per VSM saw brief improvements in FY 2019/20. Operating cost per passenger was the most affected, since operating cost increased as ridership decreased. Unsurprisingly, passenger-related metrics fell, with passengers per VSH and passengers per VSM each decreasing by approximately 54 percent during the audit period. #1..
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CITY OF MODESTO
TDA TRIENNIAL PERFORMANCE AUDIT, FY 2019 – FY 2021
Final Report
21 Exhibit 6.1 System Performance Indicators
Sources: FY 2015/16 - FY 2020/21 operational data from NTD reports.

FY 2015/16 - FY 2017/18 FTE data from State Controller Reports.

FY 2018/19 - FY 202021 FTE data provided by the City of Modesto.

FY 2015/16 FY 2016/17 FY 2017/18 FY 2018/19 FY 2019/20 FY 2020/21 Operating Cost (Actual $) $15,801,166 $16,867,898 $16,619,405 $18,399,145 $18,931,777 $23,028,131 Annual Change 6.8% -1.5% 10.7% 2.9% 21.6%
Fare Revenue (Actual $) $2,925,192 $2,777,226 $2,801,679 $2,678,586 $2,051,518 $1,133,925 Annual Change -5.1% 0.9% -4.4% -23.4% -44.7%
Vehicle Service Hours (VSH) 188,969 192,693 192,550 193,291 208,903 214,421 Annual Change 2.0% -0.1% 0.4% 8.1% 2.6%
Vehicle Service Miles (VSM) 2,412,948 2,446,111 2,299,413 2,229,019 2,399,619 2,515,597 Annual Change 1.4% -6.0% -3.1% 7.7% 4.8%
Passengers 3,241,665 2,878,789 2,686,938 2,265,448 2,057,603 1,163,627 Annual Change -11.2% -6.7% -15.7% -9.2% -43.4%
Employees 176 173 190 201 221 231
Annual Change -1.7% 9.8% 5.8% 10.0% 4.5%
Performance Indicators
Operating Cost/VSH (Actual $) $83.62 $87.54 $86.31 $95.19 $90.62 $107.40 Annual Change 4.7% -1.4% 10.3% -4.8% 18.5%
Operating Cost/Passenger (Actual $4.87 $5.86 $6.19 $8.12 $9.20 $19.79 Annual Change 20.2% 5.6% 31.3% 13.3% 115.1%
Passengers/VSH 17.15 14.94 13.95 11.72 9.85 5.43
Annual Change -12.9% -6.6% -16.0% -16.0% -44.9%
Passengers/VSM 1.34 1.18 1.17 1.02 0.86 0.46
Annual Change -12.4% -0.7% -13.0% -15.6% -46.1%
Farebox Recovery 18.5% 16.5% 16.9% 14.6% 10.8% 4.9%
Annual Change -11.1% 2.4% -13.6% -25.6% -54.6%
Hours/Employee 1073.7 1113.8 1013.4 961.6 945.3 928.2
Annual Change 3.7% -9.0% -5.1% -1.7% -1.8%
TDA Non-Required Indicators
Operating Cost/VSM $6.55 $6.90 $7.23 $8.25 $7.89 $9.15
Annual Change 5.3% 4.8% 14.2% -4.4% 16.0%
VSM/VSH 12.77 12.69 11.94 11.53 11.49 11.73
Annual Change -0.6% -5.9% -3.4% -0.4% 2.1%
Fare/Passenger $0.90 $0.96 $1.04 $1.18 $1.00 $0.97
Annual Change 6.9% 8.1% 13.4% -15.7% -2.3%
Performance Measure System-wide
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CITY OF MODESTO
TDA TRIENNIAL PERFORMANCE AUDIT, FY 2019 – FY 2021
Final Report
22 Exhibit 6.2 System Ridership Exhibit 6.3 System Operating Cost/VSH Exhibit 6.4 System Operating Cost/VSM Exhibit 6.5 System VSM/VSH 3,241,665
2,878,789
2,686,938
2,265,448
2,057,603
1,163,627
0 500,000
1,000,000
1,500,000
2,000,000
2,500,000
3,000,000
3,500,000
FY 2015/16 FY 2016/17 FY 2017/18 FY 2018/19 FY 2019/20 FY 2020/21 $83.62
$87.54
$86.31
$95.19 $90.62
$107.40
$0.00
$20.00
$40.00
$60.00
$80.00
$100.00
$120.00
FY 2015/16 FY 2016/17 FY 2017/18 FY 2018/19 FY 2019/20 FY 2020/21 $6.55
$6.90
$7.23
$8.25 $7.89
$9.15
$0.00
$1.00
$2.00
$3.00
$4.00
$5.00
$6.00
$7.00
$8.00
$9.00
$10.00
FY 2015/16 FY 2016/17 FY 2017/18 FY 2018/19 FY 2019/20 FY 2020/21

12.77 12.69

11.94 11.53 11.49

11.73 10.50

11.00 11.50

12.00 12.50

13.00 FY 2015/16 FY 2016/17 FY 2017/18 FY 2018/19 FY 2019/20 FY 2020/21 #1..
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CITY OF MODESTO
TDA TRIENNIAL PERFORMANCE AUDIT, FY 2019 – FY 2021
Final Report
23 Exhibit 6.6 System Operating Cost/Passenger Exhibit 6.7 System Passengers/VSH Exhibit 6.8 System Passengers/VSM Exhibit 6.9 System VSH/FTE $4.87
$5.86
$6.19
$8.12
$9.20
$19.79
$0.00
$5.00
$10.00
$15.00
$20.00
$25.00
FY 2015/16 FY 2016/17 FY 2017/18 FY 2018/19 FY 2019/20 FY 2020/21

17.15 14.94

13.95 11.72

9.85 5.43

0.00 2.00

4.00 6.00

8.00 10.00

12.00 14.00

16.00 18.00

20.00 FY 2015/16 FY 2016/17 FY 2017/18 FY 2018/19 FY 2019/20 FY 2020/21

1.34 1.18 1.17

1.02 0.86

0.46 0.00

0.20 0.40

0.60 0.80

1.00 1.20

1.40 1.60
FY 2015/16 FY 2016/17 FY 2017/18 FY 2018/19 FY 2019/20 FY 2020/21 1,073.7
1,113.8
1,013.4
961.6
945.3
928.2
800
850
900
950
1000
1050
1100
1150
FY 2015/16 FY 2016/17 FY 2017/18 FY 2018/19 FY 2019/20 FY 2020/21 #1..
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CITY OF MODESTO
TDA TRIENNIAL PERFORMANCE AUDIT, FY 2019 – FY 2021
Final Report
24 Exhibit 6.10 System Farebox Recovery Exhibit 6.11 System Fare/Passenger

18.5%

16.5% 16.9%

14.6%

10.8%

4.9%

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%

16.0%

18.0%

20.0%
FY 2015/16 FY 2016/17 FY 2017/18 FY 2018/19 FY 2019/20 FY 2020/21 $0.90
$0.96
$1.04
$1.18
$1.00 $0.97
$0.00
$0.20
$0.40
$0.60
$0.80
$1.00
$1.20
$1.40
FY 2015/16 FY 2016/17 FY 2017/18 FY 2018/19 FY 2019/20 FY 2020/21 #1..
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CITY OF MODESTO
TDA TRIENNIAL PERFORMANCE AUDIT, FY 2019 – FY 2021
Final Report
25 Fixed-Route Performance Trends
Fixed-route operating cost rose steadily throughout the current and prior audit periods. Between FY 2015/16 and FY 2020/21, there was a net 51.6 percent increase in operating cost. The most significant increase occurred in FY 2020/21, which experienced a 21.3 percent increase. Fare revenues, however, decreased pretty consistently during the same period. Fare revenues were heavily impacted by the COVID19 pandemic, resulting in a 59.6 percent decrease during the audit period and a 62.2 percent net decrease over the six-year span.

Vehicle service hours (VSH) increased across the six-year period, for an increase of 17.5 percent during the audit period and a 27.7 percent increase over the past six years. Vehicle service miles (VSM), on the other hand, were mixed, decreasing during FY 2017/18 and FY 2018/19. This resulted in an increase of 20 percent during the audit period, and a net increase of 14.4 percent since FY 2015/16.

Ridership has been declining for a number of years, but decreased sharply in FY 2020/21 due to the COVID19 pandemic. Overall, fixed-route ridership decreased by 49.2 percent during the audit period, and 64.3 percent over the six-year period. Double-digit ridership decreases in FY 2016/17 and FY 2018/19 led to this significant decrease.

Cost-related metrics generally increased over the audit period, though operating cost per VSH and operating cost per VSM saw brief improvements in FY 2019/20. Operating cost per passenger was the most affected, since operating cost increased as ridership decreased. Unsurprisingly, passenger-related metrics fell, with passengers per VSH and passengers per VSM each decreasing by approximately 57 percent during the audit period.
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CITY OF MODESTO
TDA TRIENNIAL PERFORMANCE AUDIT, FY 2019 – FY 2021
Final Report
26 Exhibit 6.12 Fixed-Route Performance Indicators
Sources: FY 2015/16 - FY 2020/21 operational data from NTD reports.

FY 2015/16 - FY 2017/18 FTE data from State Controller Reports.

FY 2018/19 - FY 202021 FTE data provided by the City of Modesto.

FY 2015/16 FY 2016/17 FY 2017/18 FY 2018/19 FY 2019/20 FY 2020/21 Operating Cost (Actual $) $12,981,003 $13,779,289 $13,659,109 $15,107,616 $16,221,964 $19,673,400 Annual Change 6.1% -0.9% 10.6% 7.4% 21.3%
Fare Revenue (Actual $) $2,598,624 $2,460,410 $2,512,594 $2,431,343 $1,858,233 $981,447 Annual Change -5.3% 2.1% -3.2% -23.6% -47.2%
Vehicle Service Hours (VSH) 151,089 156,258 161,231 164,250 183,197 192,965 Annual Change 3.4% 3.2% 1.9% 11.5% 5.3%
Vehicle Service Miles (VSM) 1,947,743 1,991,113 1,903,908 1,858,108 2,074,235 2,228,854 Annual Change 2.2% -4.4% -2.4% 11.6% 7.5%
Passengers 3,108,307 2,762,922 2,589,049 2,182,079 1,987,698 1,108,987 Annual Change -11.1% -6.3% -15.7% -8.9% -44.2%
Employees 130 128 132 159 181 191
Annual Change -1.5% 3.1% 20.5% 13.8% 5.5%
Performance Indicators
Operating Cost/VSH (Actual $) $85.92 $88.18 $84.72 $91.98 $88.55 $101.95 Annual Change 2.6% -3.9% 8.6% -3.7% 15.1%
Operating Cost/Passenger (Actual $) $4.18 $4.99 $5.28 $6.92 $8.16 $17.74 Annual Change 19.4% 5.8% 31.2% 17.9% 117.4%
Passengers/VSH 20.57 17.68 16.06 13.29 10.85 5.75
Annual Change -14.1% -9.2% -17.3% -18.3% -47.0%
Passengers/VSM 1.60 1.39 1.36 1.17 0.96 0.50
Annual Change -13.0% -2.0% -13.6% -18.4% -48.1%
Farebox Recovery 20.0% 17.9% 18.4% 16.1% 11.5% 4.99%
Annual Change -10.8% 3.0% -12.5% -28.8% -56.4%
Hours/Employee 1162.2 1220.8 1221.4 1033.0 1012.1 1010.3 Annual Change 5.0% 0.1% -15.4% -2.0% -0.2%
TDA Non-Required Indicators
Operating Cost/VSM $6.66 $6.92 $7.17 $8.13 $7.82 $8.83
Annual Change 3.8% 3.7% 13.3% -3.8% 12.9%
VSM/VSH 12.89 12.74 11.81 11.31 11.32 11.55
Annual Change -1.2% -7.3% -4.2% 0.1% 2.0%
Fare/Passenger $0.84 $0.89 $0.97 $1.11 $0.93 $0.88
Annual Change 6.5% 9.0% 14.8% -16.1% -5.3%
Performance Measure Fixed-Route
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CITY OF MODESTO
TDA TRIENNIAL PERFORMANCE AUDIT, FY 2019 – FY 2021
Final Report
27 Exhibit 6.13 Fixed-Route Ridership Exhibit 6.14 Fixed-Route Operating Cost/VSH Exhibit 6.15 Fixed-Route Operating Cost/VSM Exhibit 6.16 Fixed-Route VSM/VSH 3,108,307
2,762,922
2,589,049
2,182,079
1,987,698
1,108,987
-
500,000
1,000,000
1,500,000
2,000,000
2,500,000
3,000,000
3,500,000
FY 2015/16 FY 2016/17 FY 2017/18 FY 2018/19 FY 2019/20 FY 2020/21 $85.92
$88.18
$84.72
$91.98 $88.55
$101.95
$0.00
$20.00
$40.00
$60.00
$80.00
$100.00
$120.00
FY 2015/16 FY 2016/17 FY 2017/18 FY 2018/19 FY 2019/20 FY 2020/21 $6.66
$6.92
$7.17
$8.13 $7.82
$8.83
$0.00
$1.00
$2.00
$3.00
$4.00
$5.00
$6.00
$7.00
$8.00
$9.00
$10.00
FY 2015/16 FY 2016/17 FY 2017/18 FY 2018/19 FY 2019/20 FY 2020/21

12.89 12.74

11.81 11.31 11.32

11.55 10.50

11.00 11.50

12.00 12.50

13.00 13.50
FY 2015/16 FY 2016/17 FY 2017/18 FY 2018/19 FY 2019/20 FY 2020/21 #1..
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CITY OF MODESTO
TDA TRIENNIAL PERFORMANCE AUDIT, FY 2019 – FY 2021
Final Report
28 Exhibit 6.17 Fixed-Route Operating Cost/Passenger Exhibit 6.18 Fixed-Route Passengers/VSH Exhibit 6.19 Fixed-Route Passengers/VSM Exhibit 6.20 Fixed-Route VSH/FTE $4.18
$4.99 $5.28
$6.92
$8.16
$17.74
$0.00
$2.00
$4.00
$6.00
$8.00
$10.00
$12.00
$14.00
$16.00
$18.00
$20.00
FY 2015/16 FY 2016/17 FY 2017/18 FY 2018/19 FY 2019/20 FY 2020/21

20.57 17.68

16.06 13.29

10.85 5.75

0.00 5.00

10.00 15.00

20.00 25.00
FY 2015/16 FY 2016/17 FY 2017/18 FY 2018/19 FY 2019/20 FY 2020/21

1.60 1.39 1.36

1.17 0.96

0.50 0.00

0.20 0.40

0.60 0.80

1.00 1.20

1.40 1.60

1.80 FY 2015/16 FY 2016/17 FY 2017/18 FY 2018/19 FY 2019/20 FY 2020/21 1,162.2
1,220.8 1,221.4
1,033.0 1,012.1 1,010.3

0.0 200.0
400.0
600.0
800.0
1000.0
1200.0
1400.0
FY 2015/16 FY 2016/17 FY 2017/18 FY 2018/19 FY 2019/20 FY 2020/21 #1..
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CITY OF MODESTO
TDA TRIENNIAL PERFORMANCE AUDIT, FY 2019 – FY 2021
Final Report
29 Exhibit 6.21 Fixed-Route Farebox Recovery Exhibit 6.22 Fixed-Route Fare/Passenger

20.0%

17.9% 18.4%

16.1%

11.5%

4.99%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%
FY 2015/16 FY 2016/17 FY 2017/18 FY 2018/19 FY 2019/20 FY 2020/21 $0.84
$0.89
$0.97
$1.11
$0.93
$0.88
$0.00
$0.20
$0.40
$0.60
$0.80
$1.00
$1.20
FY 2015/16 FY 2016/17 FY 2017/18 FY 2018/19 FY 2019/20 FY 2020/21 #1..
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CITY OF MODESTO
TDA TRIENNIAL PERFORMANCE AUDIT, FY 2019 – FY 2021
Final Report
30 Demand-Response Performance Trends
Note: Demand-response performance indicators reflect data from both the MADAR and taxi programs.

Demand-response operating cost fluctuated from year to year. Between FY 2015/16 and FY 2020/21, there was a net 5.5 percent increase in operating cost. The most significant increase occurred in FY 2020/21, which experienced a 23.8 percent increase; however, this resulted in a net increase of just 1.9 percent during the audit period. Fare revenues, however, decreased consistently during the same period.

Fare revenues were heavily impacted by the COVID-19 pandemic, resulting in a 38.3 percent decrease during the audit period and a 53.3 percent net decrease over the six-year span.

Vehicle service hours (VSH) decreased across the six-year period, for an decrease of 26.1 percent during the audit period and a 43.4 percent decrease over the past six years. Vehicle service miles (VSM)also steadily declined. This resulted in an decrease of 22.7 percent during the audit period, and a decrease of

38.4 percent since FY 2015/16.

Ridership has also been declining for a number of years. Overall, demand-response ridership decreased by 34.5 percent during the audit period, and 59 percent over the six-year period. Double-digit ridership decreases each year of the six-year period resulted in this significant decrease.

Cost-related metrics generally increased over the audit period, though all saw brief improvements in FY 2019/20. Operating cost per passenger was the most affected, since operating cost increased as ridership decreased, though to much less of a degree than the fixed-route service. Unsurprisingly, passengerrelated metrics fell, with passengers per VSH and passengers per VSM decreasing by 11.3 percent and

15.2 percent, respectively, during the audit period.
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CITY OF MODESTO
TDA TRIENNIAL PERFORMANCE AUDIT, FY 2019 – FY 2021
Final Report
31 Exhibit 6.23 Demand-Response Performance Indicators
Sources: FY 2015/16 - FY 2020/21 operational data from NTD reports.

FY 2015/16 - FY 2017/18 FTE data from State Controller Reports.

FY 2018/19 - FY 202021 FTE data provided by the City of Modesto.

FY 2015/16 FY 2016/17 FY 2017/18 FY 2018/19 FY 2019/20 FY 2020/21 Operating Cost (Actual $) $3,179,964 $3,088,609 $2,960,296 $3,291,529 $2,709,813 $3,354,731 Annual Change -2.9% -4.2% 11.2% -17.7% 23.8%
Fare Revenue (Actual $) $326,568 $316,816 $289,085 $247,243 $193,285 $152,478 Annual Change -3.0% -8.8% -14.5% -21.8% -21.1%
Vehicle Service Hours (VSH) 37,880 36,435 31,319 29,041 25,706 21,456 Annual Change -3.8% -14.0% -7.3% -11.5% -16.5%
Vehicle Service Miles (VSM) 465,205 454,998 395,505 370,911 325,384 286,743 Annual Change -2.2% -13.1% -6.2% -12.3% -11.9%
Passengers 133,358 115,867 97,889 83,369 69,905 54,640
Annual Change -13.1% -15.5% -14.8% -16.1% -21.8%
Employees 46 45 58 42 40 40
Annual Change -2.2% 28.9% -27.6% -4.8% 0.0%
Performance Indicators
Operating Cost/VSH (Actual $) $83.95 $84.77 $94.52 $113.34 $105.42 $156.35 Annual Change 1.0% 11.5% 19.9% -7.0% 48.3%
Operating Cost/Passenger (Actual $) $23.85 $26.66 $30.24 $39.48 $38.76 $61.40 Annual Change 11.8% 13.4% 30.6% -1.8% 58.4%
Passengers/VSH 3.52 3.18 3.13 2.87 2.72 2.55
Annual Change -9.7% -1.7% -8.2% -5.3% -6.4%
Passengers/VSM 0.29 0.25 0.25 0.22 0.21 0.19
Annual Change -11.2% -2.8% -9.2% -4.4% -11.3%
Farebox Recovery 10.3% 10.3% 9.8% 7.5% 7.1% 4.5%
Annual Change -0.1% -4.8% -23.1% -5.0% -36.3%
Hours/Employee 823.5 809.7 540.0 691.5 642.7 536.4
Annual Change -1.7% -33.3% 28.1% -7.1% -16.5%
TDA Non-Required Indicators
Operating Cost/VSM $6.84 $6.79 $7.48 $8.87 $8.33 $11.70 Annual Change -0.7% 10.3% 18.6% -6.2% 40.5%
VSM/VSH 12.28 12.49 12.63 12.77 12.66 13.36
Annual Change 1.7% 1.1% 1.1% -0.9% 5.6%
Fare/Passenger $2.45 $2.73 $2.95 $2.97 $2.76 $2.79
Annual Change 11.7% 8.0% 0.4% -6.8% 0.9%
Performance Measure Demand-Response
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CITY OF MODESTO
TDA TRIENNIAL PERFORMANCE AUDIT, FY 2019 – FY 2021
Final Report
32 Exhibit 6.24 Demand-Response Ridership Exhibit 6.25 Demand-Response Operating Cost/VSH Exhibit 6.26 Demand-Response Operating Cost/VSM Exhibit 6.27 Demand-Response VSM/VSH 133,358
115,867
97,889
83,369
69,905
54,640
-
20,000
40,000
60,000
80,000
100,000
120,000
140,000
160,000
FY 2015/16 FY 2016/17 FY 2017/18 FY 2018/19 FY 2019/20 FY 2020/21 $83.95 $84.77
$94.52
$113.34
$105.42
$156.35
$0.00
$20.00
$40.00
$60.00
$80.00
$100.00
$120.00
$140.00
$160.00
$180.00
FY 2015/16 FY 2016/17 FY 2017/18 FY 2018/19 FY 2019/20 FY 2020/21 $6.84 $6.79
$7.48
$8.87 $8.33
$11.70
$0.00
$2.00
$4.00
$6.00
$8.00
$10.00
$12.00
$14.00
FY 2015/16 FY 2016/17 FY 2017/18 FY 2018/19 FY 2019/20 FY 2020/21

12.28 12.49

12.63 12.77

12.66 13.36

11.60 11.80

12.00 12.20

12.40 12.60

12.80 13.00

13.20 13.40

13.60 FY 2015/16 FY 2016/17 FY 2017/18 FY 2018/19 FY 2019/20 FY 2020/21 #1..
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CITY OF MODESTO
TDA TRIENNIAL PERFORMANCE AUDIT, FY 2019 – FY 2021
Final Report
33 Exhibit 6.28 Demand-Response Operating Cost/Passenger Exhibit 6.29 Demand-Response Passengers/VSH Exhibit 6.30 Demand-Response Passengers/VSM Exhibit 6.31 Demand-Response VSH/FTE $23.85
$26.66
$30.24
$39.48 $38.76
$61.40
$0.00
$10.00
$20.00
$30.00
$40.00
$50.00
$60.00
$70.00
FY 2015/16 FY 2016/17 FY 2017/18 FY 2018/19 FY 2019/20 FY 2020/21

3.52 3.18 3.13

2.87 2.72

2.55 0.00

0.50 1.00

1.50 2.00

2.50 3.00

3.50 4.00
FY 2015/16 FY 2016/17 FY 2017/18 FY 2018/19 FY 2019/20 FY 2020/21

0.29 0.25 0.25

0.22 0.21

0.19 0.000

0.050

0.100

0.150

0.200

0.250

0.300

0.350
FY 2015/16 FY 2016/17 FY 2017/18 FY 2018/19 FY 2019/20 FY 2020/21 823.5 809.7
540.0
691.5
642.7
536.4

0.0 100.0
200.0
300.0
400.0
500.0
600.0
700.0
800.0
900.0
FY 2015/16 FY 2016/17 FY 2017/18 FY 2018/19 FY 2019/20 FY 2020/21 #1..
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CITY OF MODESTO
TDA TRIENNIAL PERFORMANCE AUDIT, FY 2019 – FY 2021
Final Report
34 Exhibit 6.32 Demand-Response Farebox Recovery Exhibit 6.33 Demand-Response Fare/Passenger

10.3% 10.3%

9.8%

7.5% 7.1%

4.5%

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%
FY 2015/16 FY 2016/17 FY 2017/18 FY 2018/19 FY 2019/20 FY 2020/21 $2.45
$2.73
$2.95 $2.97
$2.76 $2.79
$0.00
$0.50
$1.00
$1.50
$2.00
$2.50
$3.00
$3.50
FY 2015/16 FY 2016/17 FY 2017/18 FY 2018/19 FY 2019/20 FY 2020/21 #1..
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CITY OF MODESTO
TDA TRIENNIAL PERFORMANCE AUDIT, FY 2019 – FY 2021
Final Report
35 Chapter 7 | Functional Review
A functional review of the City of Modesto’s public transit program is intended to assess the effectiveness and efficiency of the operator. Following a general summary of the City’s transit services, this chapter addresses seven functional areas. The list, taken from Section III of the Performance Audit Guidebook published by Caltrans, reflects those transit services provided by the City through its transit program:
• General management and organization;
• Service planning;
• Scheduling, dispatch, and operations;
• Personnel management and training;
• Administration;
• Marketing and public information; and
• Fleet maintenance.

Service Overview
During the audit period, the City of Modesto operated Modesto Area Express (MAX), which is comprised of nineteen local fixed- routes and three commuter routes. The local service operates within the Modesto Urbanized Area and Salida. Service is available on weekdays from 5:45 a.m. through 9:30 p.m., Saturdays from 7:15 a.m. through 9:00 p.m., and Sundays from 8:45 a.m. through 8:15 p.m. The service does not operate on designated holidays. Riders may connect with Modesto ACE Express, Modesto BART Express, Stanislaus Regional Transit (StaRT), and Amtrak.

The City operated three commuter bus services: Modesto ACE Express, Modesto BART Express, and Stockton Commuter Express. The ACE service provides three trips in the morning from Modesto's Vintage Faire Mall park and ride to the Lathrop/Manteca Altamont Commuter Express and four return trips in the evening. The BART service operates five round trips between the Modesto Transit Center and the Dublin/Pleasanton BART station. The Stockton Commuter service operates six round trips between the Modesto Transit Center and the Stockton Transit Center. All three services operate on weekdays only.

The City also operated Modesto Area Dial-A-Ride (MADAR), a door-to-door, curb-to-curb demandresponse service available to registered seniors and qualified disabled residents. Trips are provided on a first-come, first served basis. Requests for service may be made the day before or up to seven days in advance.

During the audit period, day passes, seven-day passes, and 31-day passes were available for purchase on smartphones via Token Transit as well as at the City of Modesto Finance Department, Modesto Area Express office, and Escalon City Hall. Ticket books and passes were also available for purchase by mail.

MAX to BART, MAX to ACE, and MAX to Stockton tickets and passes could be purchased only at the City of Modesto Finance Department, Modesto Area Express office and via Token Transit. Modesto Junior College students could ride fare-free by displaying their student ID card with a current semester sticker. #1..
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CITY OF MODESTO
TDA TRIENNIAL PERFORMANCE AUDIT, FY 2019 – FY 2021
Final Report
36 Exhibit 7.1 Fixed-Route Fare Structure
Fare Category Fare
Regular one-way fare $2.00
Student fare (preschool – college with valid ID) $1.50
MJC student (with valid ID) Free
Discounted one-way fare (senior 65+/disabled/Medicare card holders, youth age 5-18) $1.00 Student field trips (per person, pre-paid) $.50
Children age 4 and under (when accompanied by a parent/guardian) Free Personal Care Attendant (PCA) (when accompanying an eligible individual) Free All day pass $4.00
Discounted All day pass (senior 65+/disabled/Medicare card holders, youth age 5-18) $2.00 7-day pass $15.00
Regular 31-day pass $58.00
Student 31-day pass $48.00
Discounted 31-day pass (senior 65+/disabled/Medicare card holders) $29.00 Regular single-ride tickets (pack of 50) $100.00
Student single-ride tickets (pack of 50) $75.00
Discounted single-ride tickets (pack of 50) $50.00
MAX to ACE
One-way fare $3.00
20-ride ticket $42.00
MAX to BART
One-way fare $14.00
Round-trip fare $16.00
20-ride ticket $160.00
7-day pass $50.00
31-day pass $175.00
MAX to Stockton
One-way fare $5.00
Round-trip fare $7.00
20-ride ticket $70.00
7-day pass $25.00
31-day pass $100.00
Exhibit 7.2 Demand-Response Fare Structure
Fare Category Fare
One-way cash fare $3.00
10-ride ticket pack $30.00
Children under 5 (when accompanied by a parent/guardian) Free Personal Care Attendant (PCA) Free
Response to COVID-19 pandemic
The COVID-19 pandemic resulted in a 50-percent loss of ridership on both fixed-route and dial-a-ride services. This had a significant effect on the system through reduced farebox revenue, new requirements on buses, and the effect on operating staff. The City also implemented social distancing and rear-door boarding, and suspended fares between April and October 2020 to minimize contact. Operations staff had to reduce services for a time due to staffing shortages. Everything is now back to normal operations. #1..
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CITY OF MODESTO
TDA TRIENNIAL PERFORMANCE AUDIT, FY 2019 – FY 2021
Final Report
37 Staff estimates ridership as of August 2021 was still down about 40 percent from pre-COVID numbers.

They hope free-fare periods during FY 2021/22 (not related to COVID) will encourage riders to return to using transit.

As of July 2021, paratransit was at approximately 91 percent of its pre-COVID ridership. Adaptations are making transit highly desirable. Because of single-rider trips, the service essentially functions as a taxi.

Riders have responded very well, despite the service not being included in the July 2021 free-fare promotion.

Transition to StanRTA
Effective July 1, 2021, the City merged its transit service with the County of Stanislaus under the Stanislaus Regional Transit Authority. This was the outgrowth of the 2019 Transit Efficiency and Innovations Study, which recommended consolidation as a potential solution to ongoing farebox compliance and funding challenges. MAX and StaRT continued to operate as their individual services between July and December 2021. In August 2021, a consultant was selected to prepare a Comprehensive Operations Analysis and a new operations contractor was selected to operate the consolidated service.

In January 2022, the service began operation as a single system branded as The S under the new operations contractor (Transdev). The following functional review describes the City’s practices and functions during the audit period. Current and future practices and functions are included in the triennial performance audit of the Stanislaus Regional Transit Authority.

General Management and Organization
Management monitors key performance indicators through monthly reports from the two operations contractors. City staff meets with operations contractors regularly, at least monthly, to discuss performance and how to improve. Issues are addressed frequently with resolutions and are documented through GoModesto or through oversight meeting agendas.

The Transit department is organized effectively and appropriately staffed, with internal reporting clearly defined. There is a vacant position for a bus stop maintenance person that would be beneficial to fill.

The City recently added routes to Stockton, Ceres, and Escalon. The Escalon service is provided through a contract between the City of Modesto and the City of Escalon. Escalon provides buses, planning, and schedules, while MAX provides operation. Data was gathered specific to these changes and its impact was measured using existing goals and objectives. The City is still in its first year of operating the new routes.

The seven-member Modesto City Council serves as the City’s principal policy-making body. Members are elected to four-year terms and are limited to two consecutive terms. The City Council meets the first, second, and third Tuesday of the month at 5:30 p.m. at Modesto City Hall (1010 10th Street). This location is served by all but one MAX route via the City’s transit center, located two blocks away.

The City went through a procurement process in late 2019 for paratransit, and there was some opposition to how that process unfolded. Council canceled the procurement and moved forward in a different direction. The issue was resolved in early 2020.
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CITY OF MODESTO
TDA TRIENNIAL PERFORMANCE AUDIT, FY 2019 – FY 2021
Final Report
38 The relationship with StanCOG and neighboring operators have been positive. The neighboring operators will contact the City if they need help with an issue they are having. The City maintains an effective and positive relationship with Caltrans and the FTA.

Exhibit 7.3 Organizational Chart
Service Planning
The City assesses performance against established goals and objectives on a monthly basis. The City also assesses goals to determine if they are still relevant on a monthly basis. The City typically meets its goals and objectives on an annual basis; however, it did not achieve ridership goals during the pandemic.

No Short Range Transit Plan has been developed since 2018 due to the formation of the consolidated JPA.

The City addresses special transportation needs through provision of fixed-route, complementary ADA paratransit, and demand responsive services. Planning activities are coordinated through formal planning efforts, most recently the 2018 Short Range Transit Plan. Additionally, the agency staff participates in community organizations, organizations serving those with disabilities, senior organizations, group living facilities, etc. for ongoing collaboration. The City also conducts outreach sessions with the public to formally gather information on transportation needs and to share updates on transit activities.

Surveys are generally conducted as part of a larger planning effort (such as the SRTP). The City tries to do at least one survey a year. The most recent MAX customer survey was conducted in 2019 on the fixedroute system. Surveys are typically conducted at the Transit Center or in-person.

The City of Modesto actively works to identify residential, retail, office, and industrial development centers which may require transportation. An agreement exists with Modesto Junior College where students can ride fare-free by displaying a valid student ID. #1..
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CITY OF MODESTO
TDA TRIENNIAL PERFORMANCE AUDIT, FY 2019 – FY 2021
Final Report
39 The City also engages the public in many outreach events. Public meetings are held in advance of fare or route changes, not just to warn the public, but to give them an opportunity to tell the City how things are working before plans are finalized. The City also has an ADA advisory group. The group is not a formally adopted body with appointed members, but the City holds about three meetings per year with the inviting community ADA users and organizations to participate. While attendance is small, the meetings tend to be very productive. This was especially the case when the City was entertaining the possibility of a new contractor and changes to the service. Participation at informal outreach events invites more honest discourse, which has allowed MAX staff to engage the public effectively, informally, and personally.

Administration
The Transit Manager and the Fleet Manager, with assistance from the Financial Analyst, do the budgeting for transit on an annual basis. It is then incorporated into the City budget and goes to council. Budgets are reviewed on a monthly basis to determine if actuals and budgeted expenses are sufficient for the remaining fiscal year. If actuals substantially exceed budgeted expectations, a review of charges to account is performed to determine if any erroneous transactions have been charged to the account. If charges are appropriate, the City determines if the budget can be taken from another expense account or if it needs a budget increase using any deferred revenues. The City presents the audited financial statements to the Finance Committee and then to City Council once per year.

The City uses Oracle for its accounting software and Central Square H5 for invoicing and receivables. The City also uses RASWIN to receipt bus passes and cash transactions.

One of the Transit Analysts is responsible for applying for grants and milestone reporting. If a grant is awarded, it will be taken to City Council for approval. Once approved, a grant application is created in the FTA’s TrAMS system. After a grant application is completed, the next step is for the City to report on the grant every quarter, bi-annually, or annually. After all activities have been completed and the grant has been expended, a request for closeout of the grant will be initiated.

The Risk Management Division maintains a data-driven program of active loss prevention aiming to reduce the occurrence of vehicle accidents, employee injuries, and personal injury/property claims. All employees receive initial training on risk management procedures including the workers’ compensation process, what to do in an auto accident, and how to handle general liability claims in the field. The City employs two highly qualified third-party administrators for its workers compensation and general liability programs, respectively.

A procedure is in place for processing accident and injury claims. All injuries and accidents are investigated. A police report is made for all vehicle accidents, and they are reviewed by a committee for preventability. Employee injuries are reported through a hotline, with access to a registered nurse for triage, and entered into the workers’ compensation. Claims for damage/injury to other parties are investigated through the City’s general liability claims process which complies with the California Tort Claims Act. Workers’ Compensation and General Liability claims are administered by third-parties without oversight by City Risk Management staff.

The City is self-insured with an SIR of $1,000,000 for general liability and auto, and $750,000 for workers’ comp. The City is a member of the Authority for California Cities Excess Liability (ACCEL), a risk-sharing #1..
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CITY OF MODESTO
TDA TRIENNIAL PERFORMANCE AUDIT, FY 2019 – FY 2021
Final Report
40 pool, with additional excess liability layers up to $50M. For workers’ comp, the City purchases excess insurance through PRISM (formerly CSAC-EIA) up to statutory limits.

The City’s safety program is based on an effective Injury and Illness Prevention Program which includes provisions for hazard identification including safety inspections, employee observation, and periodic program reviews. The City also has a Safety Management Committee which reviews accident reports to recommend corrective actions to prevent recurrence. The City employs a Safety Officer and a Safety Specialist who lead proactive loss prevention activities such as a monthly all hands training, safety inspections, observations, training programs, etc.

The City, as a local government entity, has an Emergency Operations Plan which aligns with the Stanislaus County plan. Each location also has its own internal emergency action plan for evacuating employees and the public. It does not maintain a transit-specific disaster preparedness plan.

Contract management responsibilities are clearly assigned within the organization. Contractor invoices are submitted monthly. The City utilizes a hybrid approach to maintaining the transit facilities. In-house staff is the first to respond for trouble tickets and for normal preventative maintenance items. The City leverages vendor support on an as-needed basis (due to staff resources or workload impacts) to minimize impacts to the customers and operations. The one exception is custodial services, which are outsourced, currently to Kellermeyer Bergensons Services. Typical vendor support may involve electrical, mechanical, and plumbing, as well as glazing replacements.

Timesheets are all electronic. The Transit Manager reviews timesheets for the transit division on a biweekly basis. Payroll is prepared and audited by three payroll staff with oversight by the Senior Financial Analyst and wires approvals by the Accounting Manager and/or the Director of Finance. The City offers direct deposit. Paychecks are direct deposited city-wide for approximately 1,500 employees.

Invoice terms, quantities, and prices are verified against approved purchase orders. A system is in place which ensures goods or services have been received before an invoice is paid.

All procurement activity is to be conducted with the goal of completing the procurement in the most open, competitive, and fair manner and in compliance with all applicable City policies, as well as all State and Federal law, regulation and policy, as applicable. The City has its own Procurement Manual. The policies and procedures regarding competitive bids, quotes, and contracting are well-defined and appropriate. The City competitively procures fuel, vehicles, and other items of major expense. On some occasions, the City does cooperate with other organizations to purchase a similar item.

The City does not have an internal audit function.

Scheduling, Dispatch, and Operations
With two operations contracts, the City of Modesto has slightly different practices for scheduling, dispatch, and operations. These are addressed specific to each contractor below.

MAX (National Express Transit)
MAX fixed-route service is operated out of the City’s transit operations and maintenance facility.

Drivers, dispatchers, and customer service representatives are represented by Teamsters Local #1..
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CITY OF MODESTO
TDA TRIENNIAL PERFORMANCE AUDIT, FY 2019 – FY 2021
Final Report
41 386. National Express Transit (NEXT) has 139 full-time drivers and two part-time drivers. A fulltime employee is someone who works 32 hours and is full time. Once hired, full-time drivers are guaranteed 38 hours of pay per week (per the collective bargaining agreement/CBA), unless they call off sick. They are guaranteed that many hours of pay if they are able to work.

Drivers are assigned to routes and shifts via a bid process. Drivers bid on route and shift assignment every three months per the CBA. The bid is by seniority of hire date per the labor agreement. Commuter route assignments are reserved for drivers who meet the requirements of no attendance issues, no customer complaints, and no accidents/incidents. They must also be in good standing with the company.

Due to COVID-19, NEXT is about five to ten drivers short. Call-out time is two hours prior to the beginning of the shift. Road supervisors and dispatchers are trained and licensed to drive.

All drivers are qualified to drive every route and service except BART routes, which require more training and certification. They also have to be specially trained to operate the electric Proterra vehicles. Currently, 58 drivers are trained on the Proterra vehicles.

City staff pulls and dumps farebox vaults at the fuel island/probing station in the City’s operations and maintenance facility. Loomis armored car service picks up the fares and handles all counting.

MADAR (Storer Transit Systems)
Modesto Area Dial-A-Ride (MADAR) is operated under contract with Storer out of its Doker Drive facility shared with the County of Stanislaus (and formerly with the City of Ceres). Storer has 26 full-time and two part-time drivers. Storer defines a full-time driver as one that worked more than 30 hours per week or 2,000 hours per year. Part-time drivers are typically part-time by their choice. They serve as vacation relief and an extra board. Driver turnover was at approximately eight percent prior to COVID. Since April 2020, the turnover rate has been around 17 percent.

Drivers are assigned to shifts based on seniority and schedule availability. A schedule of shifts is posted two weeks in advance. Shift assignments are reviewed on a regular basis and adjusted based on service demand. Drivers can request a modification to their shift assignments two weeks in advance, prior to each posting of the schedule. Once the schedule of work shifts is posted drivers can switch shifts with other drivers with dispatch approval.

There are a sufficient number of drivers to operate the service. Call-out time is two hours prior to the shift. Job performance evaluations are combined with Storer’s Incentive Accountability Program and consist of regular evaluations and annual evaluations. Employees receive positive feedback and constructive coaching on areas that need improvement on a regular basis.

MADAR uses Diamond drop-vault fareboxes. They are emptied Monday and Thursday nights and switched out with empty vaults. They are then opened at the City which handles all counting and deposits in the City’s accounts (Transit counts the fares, while Finance reconciles and deposits the fares).
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CITY OF MODESTO
TDA TRIENNIAL PERFORMANCE AUDIT, FY 2019 – FY 2021
Final Report
42 Personnel Management and Training
With two operations contracts, the City has slightly different practices for personnel management and training. These are addressed specific to each contractor below.

MAX (National Express Transit)
NEXT provides a sufficient number of drivers. Recruiting methods include advertising, banners, magnetic signs, web tactics, Indeed.com, 16 advertising sites, social media, flyers, and word of mouth. The experience level of recruits is mixed, with some needing comprehensive training and others coming in with a commercial license. Road supervisors and dispatchers are trained and licensed to drive.

While NEXT does not have issues with recruitment, it is difficult to find candidates who pass both the background check and drug testing. In some cases, they hire five, two show up for training, and one will quit.

All drivers are qualified to drive every route and service except BART routes, which require more training and certification. They also have to be specially trained to operate the electric Proterra vehicles. This training is done in house. Initial driver training comprises a minimum of 144 hours and includes classroom, behind-the-wheel, cadetting, and Proterra training. Further training includes harassment, bullying, theft, behind-the-wheel yard skills, operation of a bus, pre-trip, post-trip, then observations of all routes, geography, route studies, and training specific to pass the CDL test.

Management motivates employees through incentives, perks, barbecues, contests, bonuses, employee of the month, hero of the month, parking passes, wall of fame, face-to-face check-ins, communications, positive feedback, verbal coaching, and daily interaction with all staff, drivers, and managers.

NEXT does its best to have an evaluation semiannually, unless a driver is having a difficult time in any area, whether that is customer service, wheelchair, right-hand turns, left-hand turns, etc. If any driver receives a complaint or an incident, they are automatically referred for retraining.

There is a clear policy regarding absences and tardiness in both the Driver’s Handbook and CBA.

In addition, the driver’s handbook and NEXT’s CBA outline a progressive discipline policy.

There are paid benefits for full-time drivers and all union members. Benefits include accidental death, dismemberment, retirement, short-term and long-term critical illness. Staff and management have benefits and pay a portion of the premium. Part-time employees receive sick leave only.

MADAR (Storer)
MADAR recruitment is ongoing. Storer utilizes advertising, banners, magnetic signs, web tactics, Indeed, 16 advertising sites, social media, flyers, and word of mouth to recruit new drivers. They were able to transfer some school bus drivers who were laid off for COVID from the school bus division to the transit division, which significantly simplified training. #1..
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CITY OF MODESTO
TDA TRIENNIAL PERFORMANCE AUDIT, FY 2019 – FY 2021
Final Report
43 MADAR drivers must hold a commercial driver’s license (Class B), with a passenger endorsement.

Drivers must also have a valid, up-to-date Commercial Medical Certificate and clear background check and hold a valid General Public Paratransit Certificate or a Verification of Transit Training Certificate. Drivers driving in taxi service must hold a taxi permit and clear a background check.

Storer’s Employee Incentive Program helps with motivating employees. The Incentive Program gives employees the opportunity to earn a monetary bonus that ranges from $150 to $500 per year based on attendance, job performance, safety, customer service, etc. In addition, Storer has a Driver of the Month Award, a quarterly Dispatch STAR Award (Supportive, Team Player, Accountable, and Responsible), a quarterly Customer Service AAA Award (Awesome Agent Award), and an Employee of the Year award. It also holds an annual end-of-year barbecue to recognize all the recipients of these awards. Storer’s Corporate office also holds monthly barbecues, weather permitting, where employees company-wide are recognized.

The MADAR program has a full-time California state-certified instructor and a safety- and DMVcertified trainer that do DMV road tests and follow DMV policies. Training includes bus evacuation, fire extinguishers, first aid, and blood-borne pathogens.

Monthly safety meetings occur with agendas and rotating topics. CPR training is not conducted as it is not required by the contract. Turnover is modest, with the most common reason being wages.

Others retire or finish school and go on to pursue different profession. Very few are terminated.

Drivers receive regular safety observations and “spot checks” to ensure they are meeting performance standards. On an annual basis, drivers receive a random Annual Safety Observation where they are scored on overall performance (safety, customer service, proper mobility device securement, etc.). Drivers have an opportunity to earn positive and negative points based on this observation and the points are then applied to their incentive/accountability bank which may help earn them the annual monetary bonus. New drivers will receive an evaluation every three months of service along with spot checks, up through their first year, to ensure performance standards are being met.

Storer dispatchers are also drivers and receive the same Annual Safety Observation mentioned above. They receive on-the-job evaluations based on performance, meeting performance metrics, customer service, etc. Customer Service Representatives receive on-the-job evaluations based on customer service including proper telephone etiquette, providing correct service information, accurate trip bookings, politeness and more. Random telephone calls are pulled and reviewed and discussed with each CSR as part of their evaluations. These are conducted weekly for new customer service representatives, then monthly, quarterly, and annually. Due to customer complaints and absenteeism, an employee of the month program is planned to be implemented and employees will be recognized at monthly safety meetings. Drivers are paid for safety meetings.

Each instructor and trainer have been tested and certified through the California Department of Education. Drivers are provided with the following courses: Sexual harassment prevention, drugs and alcohol, blood borne pathogens, distracted driving prevention, passenger boarding and alighting, mobility device securement, customer service training, map/demographic training, and #1..
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CITY OF MODESTO
TDA TRIENNIAL PERFORMANCE AUDIT, FY 2019 – FY 2021
Final Report
44 in-service training. In addition, the required 20 hours of classroom and 20 hours of behind-thewheel training is also provided.

Storer’s employee handbook includes a policy regarding absences and tardiness. In addition, the Incentive Accountability Program clearly reiterates Storer’s policy and is used for tracking absences and tardiness. It also includes a progressive disciplinary process policy and again is supported by the Incentive Accountability Program.

Full-time employees receive a full benefit package after 90 days of employment. That package includes health, dental, and vision Insurance, 401(k), external employee education, workers’ compensation leave, paid time off (vacation and sick leave combined), maternity leave, CPSL, and FMLA. Part-time employees are offered 401(k), sick leave, maternity leave, workers’ compensation leave, and FMLA.

Marketing and Public Information
The City publishes and distributes schedules and other service information via social media, its website, printed materials, website advertisements, and specific events throughout the year. The City effectively responds to telephone inquiries regarding service. The customer complaint system GoModesto can be used to file into an electronic system. One staffer at transit center files complaint, follows up, then finalizes the complaint.

Performance and survey data are analyzed to develop goals and identify target markets. The City contracts an outside marketing consultant to provide marketing services. The City meets with the contractor monthly to review plans for additional work that is needed.

The City communicates effectively with schools and employers to promote transit services, but there is always room for improvement. The public perception of MAX is generally positive.

Drivers are generally pleased with the mobile ticketing offered by the City. They do not have to touch as much money, and have many of disabled people who often need assistance in putting money in the farebox. With mobile ticketing they can just look at the ticket on the phone.

Maintenance
The City’s preventive maintenance program is a commitment by the City of Modesto to operate and maintain the bus maintenance facility. The goal is to provide a clean and safe working environment which aids in the efficiency of bus maintenance. It also guarantees effectively maintaining the building, its equipment, and facility systems to prolong its service life. The preventive maintenance program is per the manufacturer’s recommendations or better.

The preventive maintenance schedule conforms to the manufacturer’s recommended schedule, and compliance with the schedule can easily be judged. Maintenance does not conflict with regular vehicle use. The City identifies repairs covered by a manufacturer’s warranty and makes appropriate adjustments.

The current transit facilities are capable of accommodating repairs that are not sent out. Paint and engine warranty work are typically sent out. Transmission work may also be sent out. There are six bays, two drive-on in-ground lifts, two axle lifts, and one set of portable wheel lifts. The number of bays and lifts #1..
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CITY OF MODESTO
TDA TRIENNIAL PERFORMANCE AUDIT, FY 2019 – FY 2021
Final Report
45 are sufficient for the number of vehicles. There is an office for administration staff and all current and archived records are stored electronically.

The average age of the transit vehicles is eight years. Two new commuter buses, 2021 MCIs, were procured in late December 2020. These new vehicles, as well as the Proterra buses, bring down the average age. There is a vehicle replacement program in effect that identifies funding for replacement vehicles.

There are procedures in place to ensure unsafe buses are not put into service. If an unsafe vehicle is identified the operator uses a lock out/tag out procedure. The bus is put on a list, a steering wheel cover Is placed, and the battery is shut off or disconnected making the vehicle unable to start. Procedures are in place to ensure the most critically needed types of vehicles are repaired first. There is no backlog of repairs/maintenance.

The parts room is secure and parts are tracked electronically via Fleet Anywhere. Maintenance is promptly notified of breakdowns and communicates which vehicles are scheduled for maintenance or repair to the dispatcher. The City’s Fleet Services handles the maintenance and repairs for the transit fleet. If work needs to contracted out, the City will obtain three quotes per FTA procurement policies.

The City also provides maintenance services to the City of Escalon as part of its operations contract, even though Escalon owns its own vehicles.

Exhibit 7.4 City of Modesto’s Transit Fleet
Vehicle # Year Make Model PAX WC Service Mileage as
of 6/30/21
21499 2014 Ford F550 Cut Away Transit Coach 20 2 Fixed Route 99106 21401 2014 Ford F550 Cut Away Transit Coach 20 2 Fixed Route 83027 21102 2011 Ford E450 Cut Away Transit Coach 14 2 Fixed Route 117590 21603 2016 Dodge Coach Minivan Handicap 4 1 Fixed Route 27529 21904 2019 Chevrolet 4500 Cut Away Transit Coach Low Floor 19 3 Fixed Route 23532 22105 2021 Gillig Low Floor 102" 40` 89 2 Fixed Route 1398 22106 2021 Gillig Low Floor 102" 40` 89 2 Fixed Route 1742 22107 2021 Gillig Low Floor 102" 40` 89 2 Fixed Route 1166 29914 1999 MCI Commuter 40` 47 2
Commuter
Service 42811
20321 2003 Gillig Low Floor 102" 35` 84 2 Fixed Route 627386 20322 2003 Gillig Low Floor 102" 35` 84 2 Fixed Route 666311 20323 2003 Gillig Low Floor 102" 35` 84 2 Fixed Route 738909 20324 2003 Gillig Low Floor 102" 35` 84 2 Fixed Route 627013 20325 2003 Gillig Low Floor 102" 35` 84 2 Fixed Route 667575 20326 2003 Gillig Low Floor 102" 35` 84 2 Fixed Route 646415 20327 2003 Gillig Low Floor 102" 35` 84 2 Fixed Route 653479 20328 2003 Gillig Low Floor 102" 35` 84 2 Fixed Route 613266 20329 2003 Gillig Low Floor 102" 40` 79 2 Fixed Route 591956 20330 2003 Gillig Low Floor 102" 40` 79 2 Fixed Route 696190 20331 2003 Gillig Low Floor 102" 40` 79 2 Fixed Route 675297 20332 2003 Gillig Low Floor 102" 40` 79 2 Fixed Route 604560 20333 2003 Gillig Low Floor 102" 40` 79 2 Fixed Route 587964 #1..
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CITY OF MODESTO
TDA TRIENNIAL PERFORMANCE AUDIT, FY 2019 – FY 2021
Final Report
46 Vehicle # Year Make Model PAX WC Service Mileage as
of 6/30/21
20334 2003 Gillig Low Floor 102" 40` 79 2 Fixed Route 562082 20715 2007 MCI Coach Commuter 40` 47 2
Commuter
Service 813343
20835 2008 Gillig Standard Floor 102" 40` 63 2 Fixed Route 411180 20836 2008 Gillig Standard Floor 102" 40` 63 2 Fixed Route 404904 20837 2008 Gillig Standard Floor 102" 40` 63 2 Fixed Route 402385 20838 2008 Gillig Standard Floor 102" 40` 63 2 Fixed Route 399779 20839 2008 Gillig Standard Floor 102" 40` 63 2 Fixed Route 413253 20940 2009 Gillig Low Floor 102" 40` 79 2 Fixed Route 415756 20941 2009 Gillig Low Floor 102" 40` 79 2 Fixed Route 436420 20942 2009 Gillig Low Floor 102" 40` 79 2 Fixed Route 429814 20943 2009 Gillig Low Floor 102" 40` 79 2 Fixed Route 431610 20944 2009 Gillig Low Floor 102" 40` 79 2 Fixed Route 452573 20945 2009 Gillig Low Floor 102" 40` 79 2 Fixed Route 427296 20946 2009 Gillig Low Floor 102" 40` 79 2 Fixed Route 433513 21217 2012 MCI Coach Commuter 45` 55 2
Commuter
Service 528826
21447 2014 Gillig Low Floor 102" 40` 89 2 Fixed Route 236240 21448 2014 Gillig Low Floor 102" 40` 89 2 Fixed Route 243850 21449 2014 Gillig Low Floor 102" 40` 89 2 Fixed Route 238392 21450 2014 Gillig Low Floor 102" 40` 89 2 Fixed Route 271032 21451 2014 Gillig Low Floor 102" 40` 89 2 Fixed Route 262963 21452 2014 Gillig Low Floor 102" 40` 89 2 Fixed Route 264579 21453 2014 Gillig Low Floor 102" 40` 89 2 Fixed Route 249335 21454 2014 Gillig Low Floor 102" 40` 89 2 Fixed Route 262541 21555 2015 Gillig Low Floor 102" 40` 89 2 Fixed Route 226915 21556 2015 Gillig Low Floor 102" 40` 89 2 Fixed Route 258281 21557 2015 Gillig Low Floor 102" 40` 89 2 Fixed Route 237621 21558 2015 Gillig Low Floor 102" 40` 89 2 Fixed Route 243398 21559 2015 Gillig Low Floor 102" 40` 89 2 Fixed Route 239553 21560 2015 Gillig Low Floor 102" 40` 89 2 Fixed Route 237168 21561 2015 Gillig Low Floor 102" 40` 89 2 Fixed Route 252826 21562 2015 Gillig Low Floor 102" 40` 89 2 Fixed Route 245619 21563 2015 Gillig Low Floor 102" 40` 89 2 Fixed Route 242354 21564 2015 Gillig Low Floor 102" 40` 89 2 Fixed Route 250969 21565 2015 Gillig Low Floor 102" 40` 89 2 Fixed Route 243372 21566 2015 Gillig Low Floor 102" 35` 96 2 Fixed Route 246952 21567 2015 Gillig Low Floor 102" 35` 96 2 Fixed Route 259454 21568 2015 Gillig Low Floor 102" 35` 96 2 Fixed Route 238336 21769 2017 MCI Coach Commuter 45` 55 2
Commuter
Service 346973
21770 2017 Gillig Low Floor 102" 40` 89 2 Fixed Route 171420 21771 2017 Gillig Low Floor 102" 40` 89 2 Fixed Route 168168 21772 2017 Gillig Low Floor 102" 40` 89 2 Fixed Route 181476 21773 2017 Gillig Low Floor 102" 40` 89 2 Fixed Route 170111 21874 2018 Proterra Low Floor 102" 40` 77 2 Fixed Route 39290 21875 2018 Proterra Low Floor 102" 40` 77 2 Fixed Route 48571 #1..
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CITY OF MODESTO
TDA TRIENNIAL PERFORMANCE AUDIT, FY 2019 – FY 2021
Final Report
47 Vehicle # Year Make Model PAX WC Service Mileage as
of 6/30/21
21876 2018 Proterra Low Floor 102" 40` 77 2 Fixed Route 44452 21877 2018 Proterra Low Floor 102" 40` 77 2 Fixed Route 23989 21878 2018 Proterra Low Floor 102" 40` 77 2 Fixed Route 47678 22179 2021 MCI Coach Commuter 45' 55 2
Commuter
Service 11546
22180 2021 MCI Coach Commuter 45' 55 2
Commuter
Service 18580
30899 2008 Ford Truck ½ ton pickup full size N/A N/A Support Vehicle 44690
31641 2016 Ford Truck ½ ton pickup extended cab N/A N/A Support Vehicle 28046
40896 2008 Ford Truck 17.5 Service Body N/A N/A Support Vehicle 31171
51085 2010 Hyundai Forklift 6,000 lb LPG N/A N/A Support Equipment 990
51604 2016 Genie Lift, scissor, 32' N/A N/A Support
Equipment 67
71610 2016 FCT Scrubber, floor, walk-behind N/A N/A Support Equipment 478
41706 2017 Ford Truck 14.5 with utility N/A N/A Support Vehicle 25632
51703 2017 Club Car Utility vehicle 3-4 wheel electric N/A N/A Support Equipment 57
31910 2019 Dodge Van ½ ton midsize 7-passenger N/A N/A Support Vehicle 31992
51902 2019 Genie Lift, boom, 30' N/A N/A Support
Equipment 3
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CITY OF MODESTO
TDA TRIENNIAL PERFORMANCE AUDIT, FY 2019 – FY 2021
Final Report
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CITY OF MODESTO
TDA TRIENNIAL PERFORMANCE AUDIT, FY 2019 – FY 2021
Final Report
49 Chapter 8 | Findings and Recommendations
Conclusions
Moore & Associates finds the City of Modesto to be in compliance with the requirements of the Transportation Development Act. In addition, the entity generally functions in an efficient, effective, and economical manner.

Findings
Based on discussions with City staff, analysis of program performance, and an audit of program compliance and function, the audit team presents no findings or recommendations.

The audit team has identified two functional findings. While these findings are not compliance findings, the audit team believes they warrant inclusion in this report:

1. The full-time equivalents reported on the State Controller Reports are different from the FTE data calculated using the TDA definition.

2. Incorrect performance data was reported on the State Controller Report in 2020/21.

Program Recommendations
In completing this Triennial Performance Audit, the auditors submit the following recommendations for the City’s public transit program. They are divided into two categories: TDA Program Compliance Recommendations and Functional Recommendations. TDA Program Compliance Recommendations are intended to assist in bringing the operator into compliance with the requirements and standards of the TDA, while Functional Recommendations address issues identified during the audit that are not specific to TDA compliance. Each finding is presented with the elements identified within the 2011 Government Auditing Standards as well as one or more recommendations.

Given there were no compliance findings, only functional findings and recommendations are presented below.

Functional Finding 1: The full-time equivalents reported on the State Controller Reports are different from the FTE data calculated using the TDA definition.

Criteria: PUC 99247 defines full-time equivalent (FTE) employees as total work hours divided by 2,000.

Condition: The City has demonstrated it uses the TDA definition in calculating its full-time equivalents.

However, this calculation does not match what was reported on the State Controller’s Transit Operator Financial Transaction Report.

Cause: When the reported data does not match the calculated data, this is often the result of a disconnect between the individual calculating the FTE data and the individual completing the State Controller Report.

Effect: This results in incorrect data being reported to the State Controller.

Recommendation: Ensure the correctly calculated FTE data is included on the State Controller Report. #1..
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CITY OF MODESTO
TDA TRIENNIAL PERFORMANCE AUDIT, FY 2019 – FY 2021
Final Report
50 Recommended Action: For the FY 2020/21 State Controller Report and future reporting by Stanislaus RTA, the report should reflect the correctly calculated FTE data. This data should then be provided as part of the next triennial performance audit. (Note: This data was subsequently correctly reported on the FY 2020/21 State Controller Reports.)
Timeline: FY 2021/22.

Anticipated Cost: None.

Functional Finding 2: Incorrect performance data was reported on the State Controller Report in 2020/21.

Criteria: Under PUC Section 99243, transit operators are required to submit an annual report of their operation to the State Controller. This report includes performance data for that year segregated by mode. Two of the metrics included in this report are vehicle service (or revenue) hours and vehicle service (or revenue) miles.

Condition: In FY 2020/21, vehicle service hours as reported to the State Controller were extremely low as compared to those reported elsewhere. They were more in line with average daily VSH rather than for the entire year. In addition, demand-response vehicle service miles reported the total vehicle miles instead, which was approximately 17 percent higher than it should have been.

Cause: Incorrect reporting is typically the result of populating the report with the wrong data, rather than an issue with the data itself.

Effect: This results in incorrect data being reported to the State Controller.

Recommendation: Ensure performance data is accurately reported to the State Controller.

Recommended Action: For future reporting by Stanislaus RTA, the State Controller Report should reflect accurate vehicle service hours and miles by mode.

Timeline: FY 2022/23.

Anticipated Cost: None.

Exhibit 8.1 Audit Recommendations
Functional Recommendations Importance Timeline
1 Ensure the correctly calculated FTE data is included on the State Controller Report. Medium FY 2021/22
2 Ensure performance data is accurately reported to the State Controller. Medium FY 2022/23
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