Operations & Finance Committee Meeting Agenda

Transcription

1 Operations & Finance Committee Meeting Agenda Nashville MTA Committee Meetings Metro Nashville Police Department West Precinct 5500 Charlotte Pike, Nashville, TN Please note SEPTEMBER meeting Thursday, September 27, 2018 The Operations & Finance Committee will begin at 1:30 p.m. Operations & Finance Committee Walter Searcy, Chair Hannah Paramore Breen, Member 1. Call to Order 2. Discussion Items a. Monthly Financial Report Compared to Budget Ed Oliphant, Chief Financial Officer b. Monthly Operating Statistics India Birdsong, Chief Operating Officer 3. Action Items a. MTA/RTA Contract Renewal For Regional Transit Services- Ed Oliphant, Chief Financial Officer b. MTA/RTA Management Contract Renewal Ed Oliphant, Chief Financial Officer c. Resolution For FT2019 Annual Grant Applications Julie Timm, Chief Development Officer d. Trapeze Group Sole Source Support/Warrant and Maintenance Rita Roberts-Turner, Chief Administrative Officer 4. Other Business 5. Adjourn OF-D OF-D OF-A OF-A OF-A OF-A

2 NASHVILLE METROPOLITAN TRANSIT AUTHORITY OF NASHVILLE AND DAVIDSON COUNTY, TENNESSEE COMMITTEE DISCUSSION ITEM Item Number: OF-D Meeting Date: 09/27/18 Item Title: MONTHLY FINANCIAL REPORT COMPARED TO BUDGET Attached is a statement of operations for the month ended July 31, 2018 compared to the budget and a balance sheet as of July 31, CURRENT STATUS Chief Financial Officer Ed Oliphant will review the statements at the committee meeting. Approved: Chief Financial Officer September 21, 2018 Date 1

3 Metropolitan Transit Authority Statement of Operations Compared to Budget For the Period Ending July 31, 2018 UNAUDITED Actual Month Month End F / Prior Year Actual Budget Y-T-D F / Annual Month Budget Variance U Y-T-D Y-T-D Y-T-D Variance U Budget Revenue form Operations: Passenger Fares $557,924 $603,039 ($45,115) U $655,229 $557,924 $603,039 ($45,115) U $7,757,000 Access Ride 82,351 76,721 5,630 F 75,617 82,351 76,721 5,630 F 864,900 Contract Revenues 219, ,960 14,336 F 199, , ,960 14,336 F 2,630,432 Advertising 92,193 95,000 (2,807) U 88,614 92,193 95,000 (2,807) U 1,000,000 Other Non-Trans Revenue 89,826 82,303 7,523 F 75,360 89,826 82,303 7,523 F 1,055,200 Total Operating Revenue 1,041,590 1,062,023 (20,433) U 1,094,666 1,041,590 1,062,023 (20,433) U 13,307,532 Federal/State/Local Income: Local Assistance 5,000,000 5,000,000 0 F 7,500,000 5,000,000 5,000,000 0 F 48,635,900 State Assistance F F 4,904,300 Federal Assistance - CMAQ F 157, F 427,350 Federal Assistance - JARC/New Free 94, ,425 (14,395) U 104,948 94, ,425 (14,395) U 1,301,110 Total Assistance Income 5,094,030 5,108,425 (14,395) U 7,762,789 5,094,030 5,108,425 (14,395) U 55,268,660 Capital Revenue: Capital Operating Reimbursement F F 13,121,924 Capital ADA Reimbursement F F 2,625,000 Total Capital Income F F 15,746,924 Total Revenue $6,135,620 $6,170,448 ($34,828) U $8,857,455 $6,135,620 $6,170,448 ($34,828) U $84,323,116 Expenses from Operations: Labor and Fringes $4,923,540 $4,872,043 ($51,497) U $4,649,069 $4,923,540 $4,872,043 ($51,497) U $59,692,767 Services 736, ,952 32,730 F 642, , ,952 32,730 F 9,294,560 Fuel 444, , F 365, , , F 5,330,280 Parts, Materials and Supplies 553, ,548 (70,738) U 535, , ,548 (70,738) U 6,020,556 Utilities 75, ,081 32,431 F 94,198 75, ,081 32,431 F 1,267,100 Casualty and Liability 181, ,813 (3,242) U 172, , ,813 (3,242) U 2,121,800 Other 111, ,712 15,092 F 62, , ,712 15,092 F 596,053 Total Operating Expenses 7,026,067 6,981,806 (44,261) U 6,522,244 7,026,067 6,981,806 (44,261) U 84,323,116 Surplus / (Deficit) before GASB 33 ($890,447) ($811,358) ($79,089) U $2,335,211 ($890,447) ($811,358) ($79,089) U $0 Capital Grant Revenue 0 0 F F 0 Rental income - MCC Amortization 49,167 49,167 F 49,167 49,167 49,167 F Depreciation (1,174,441) (1,174,441) U (1,129,713) (1,174,441) (1,174,441) U 0 Surplus / (Deficit) ($2,015,721) ($811,358) ($1,204,363) U $1,254,665 ($2,015,721) ($811,358) ($1,204,363) U $0 2

4 Metropolitan Transit Authority Comparative Balance Sheets Month Ended Month Ended July 31, 2018 June 30, 2018 (unaudited) (unaudited) CURRENT ASSETS Cash and cash equivalents $5,687,621 $5,418,908 Receivables from federal, state and local government 3,981,501 5,327,402 Accounts receivable 1,109,956 1,344,568 Materials and supplies 2,713,311 2,700,879 Prepaid expense and other 900, ,431 Pension Deferred Outflow 6,412,991 6,412,991 Total Current Assets 20,805,698 21,874,179 PROPERTY AND EQUIPMENT Land 14,733,025 14,733,025 Building, shelter and benches 96,530,555 96,496,105 Revenue equipment and parts 140,984, ,372,667 Office furniture and equipment 4,744,211 4,739,099 Other 15,221,507 14,401, ,214, ,742,208 Less: Accumulated Depreciation (130,769,345) (128,915,627) Total Property and equipment, net 141,444, ,826,581 OTHER ASSETS Cash and investments for self-insurance and other 8,353,375 9,038,158 TOTAL ASSETS $170,603,886 $162,738,918 LIABILITIES AND NET ASSETS CURRENT LIABILITIES Accounts payable $15,702,963 $5,933,971 Accrued expenses 6,965,866 6,317,177 Deferred revenue 46,166 46,142 Note Payable 4,000,000 4,000,000 Total Current Liabilities 26,714,995 16,297,290 NON-CURRENT LIABILITIES Deferred Revenue 8,508,294 8,557,461 Refundable Grants 1,235,641 1,235,641 Net Pension Liability 16,972,784 16,972,784 Pension Deferred Inflow 1,262,057 1,262,057 Net other postemployment benefits obligations 42,936,147 42,936,147 NET ASSETS Invested in capital assets 128,936, ,269,120 Reserve for capital purchases 407,231 8,688,158 Unrestricted (54,354,061) (55,441,361) Current Year Surplus / (deficit) (2,015,721) 2,961,621 Total Net Assets 72,973,968 75,477,538 TOTAL LIABILITIES AND NET ASSETS $170,603,886 $162,738,918 Current > 30 days > 60 Days > 90 days Total Accounts Receivable $855,003 $74,980 $166,470 $13,503 $1,109, % 6.8% 15.0% 1.2% 100.0% Accounts Payable $10,856,952 $4,456,613 $397,511 ($8,113) $15,702, % 28.4% 2.5% -0.1% 100.0% 3

5 NASHVILLE METROPOLITAN TRANSIT AUTHORITY OF NASHVILLE AND DAVIDSON COUNTY, TENNESSEE COMMITTEE DISCUSSION ITEM Item Number: OF-D Meeting Date: 09/27/18 Item Title: MONTHLY OPERATING STATISTICS BACKGROUND Attached are monthly operating statistics through July CURRENT STATUS Chief Operating Officer India Birdsong will review the statistics at the committee meeting. Approved: Chief Operating Officer September 21, 2018 Date 4

6 WeGo Operations Dashboard Report * July 2018 July 2017 Pct. Change Average Monthly Goals Ridership Total Passengers Bus 719, , % AccessRide (MTA) 26,177 24, % AccessRide (Overflow/Taxi) 8,625 11, % AccessRide Total 34,802 35, % Total 754, , % 830,000 Passengers per Revenue Hour Bus % 18 AccessRide % 2.1 Total Scheduled Revenue Hours 57,393 54, % Total Cost Per Scheduled Revenue Hour of Service $ $ % Safety Miles Between Total Accidents 72,068 49, % 36,000 Miles Between Preventable Accidents N/A 174,716 N/A 300,000 Preventable Accidents % Non-Preventable Accidents % Internal Accidents % External Accidents % Service Quality Bus Trip Completion Percentage 98.3% 99.5% -1.3% 99.5% AccessRide Trip Denials % 0 Miles Between Road Calls 2,378 2, % 3,200 On-Time Performance Bus 85.6% 88.2% -2.7% 85.0% AccessRide 85.7% 88.3% -2.6% 89.0% Customer Care Passengers Carried Per Complaint Bus 7,266 6, % 8,000 AccessRide % 700 Total Calls Received 26,622 25, % Percent of Calls Answered 95.3% 85.9% 9.4% 95.0% * Goals will be re-evaluated semi annually based on performance. 5

7 WeGo Operations Dashboard Report * FY 2019 July FY 2018 July Pct. Change Average Monthly Goals Ridership Total Passengers Bus 719, , % AccessRide (MTA) 26,177 24, % AccessRide (Overflow/Taxi) 8,625 11, % AccessRide Total 34,802 35, % Total 754, , % 830,000 Passengers per Revenue Hour Bus % 18 AccessRide % 2.1 Total Scheduled Revenue Hours 57,393 54, % Total Cost Per Scheduled Revenue Hour of Service $ $ % Safety Miles Between Total Accidents 72,068 49, % 36,000 Miles Between Preventable Accidents N/A 174,716 N/A 300,000 Preventable Accidents % Non-Preventable Accidents % Internal Accidents % External Accidents % Service Quality Bus Trip Completion Percentage 98.3% 99.5% -1.3% 99.5% AccessRide Trip Denials % 0 Miles Between Road Calls 2,378 2, % 3,200 On-Time Performance Bus 85.6% 88.2% -2.7% 85.0% AccessRide 85.7% 83.4% 2.3% 89.0% Customer Care Passengers Carried Per Complaint Bus 7,266 6, % 8,000 AccessRide % 700 Total Calls Received 26,622 25, % Percent of Calls Answered 95.3% 85.9% 9.4% 95.0% * Goals will be re-evaluated semi annually based on performance. 6

8 NASHILLE METROPOLITAN TRANSIT AUTHORITY OF NASHVILLE AND DAVIDSON COUNTY, TENNESSEE COMMITTEE ACTION ITEM Item Number: OF-A Meeting Date: 09/27/18 Item Title: MTA/RTA CONTRACT RENEWAL FOR REGIONAL TRANSIT SERVICES BACKGROUND Each year, the Nashville Metropolitan Transit Authority (Nashville MTA) contracts with the Regional Transportation Authority of Middle Tennessee (RTA) to provide regional transit services, Davidson/Rutherford County Relax & Ride services to Murfreesboro, Tennessee as well as connecting bus services to support the commuter train service for the Music City Star in Nashville, Tennessee. In June 2018, the Nashville MTA Board approved a three-month extension to the FY2018 contract as a result of the RTA Board requesting a more detailed cost analysis to better understand the basis for the cost being charged for the service. We are requesting a 3% increase for the new fiscal year, which would take the hourly rate from $ to $ Since there are different funding sources for the regional bus services and the connecting bus services, two separate contracts are required. Contract 1 Under the new contract for regional bus service between Davidson and Rutherford counties (Routes 84X, 86X, and 96X), the RTA will pay the Nashville MTA for up to hours of daily service at a rate of $ per hour, or an amount not to exceed $1,668,044, covering 254 days of weekday transit service contained in the contract. This represents a 3% increase in the contract price compared to the prior year as a result of Nashville MTA s proposed increase in the hourly rate from $ to $ per hour. Routes 84X (Murfreesboro Express) and 86X (Smyrna/ La Vergne Express) provided by Nashville MTA are similar to other RTA Relax and Ride routes insofar as they operate limited-stop service during peak hours only on limited access highways, utilizing over the road commuter coaches. Route 96X (Nashville/Murfreesboro Relax & Ride) more closely mirrors Nashville MTA urban transit service to the extent that it operates local urban transit service (beyond Bell Road to Murfreesboro) along arterial streets with frequent stops using heavy-duty city transit coaches. Contract 2 Under this new contract for connecting bus services for Davidson County, the RTA will pay the Nashville MTA for up to 6.23 hours of daily service at a rate of $ per hour, or $174,618, covering the 254 days of weekday transit service contained in the contract. This also represents a 3% increase in the contract price compared to the prior year as a result of Nashville MTA s proposed increase in the hourly rate from $ to $ per hour. This service Route 93 Music City Star/West End Shuttle is similar to the Route 96X insofar as it is local, urban transit service. A fuel escalator clause will again be included in all the new contracts to protect the Nashville MTA should the average fuel prices escalate above $1.85 per gallon. The clause stipulates that for every 25-cent increase in the monthly average per gallon cost of fuel, the hourly rate will increase $1.50 per hour for that month going forward. This will cover the Nashville MTA s increase in operating cost due to increased fuel costs. This escalator is above and beyond the contracted amounts mentioned above. This will likely not be a factor for RTA since Nashville MTA has hedged approximately 71% of 7

9 projected diesel fuel consumption at a contract price of around $1.82 per gallon. For analysis, Nashville MTA used its FY2018 operating cost results and looked at what costs were specifically for operating their bus services versus its AccessRide service costs to provide services to the elderly and disabled as well as any overhead and administrative costs not directly associated with bus service, as such costs are already accounted for in the management agreement between RTA and Nashville MTA. Based upon this analysis, Nashville MTA s effective cost per hour to operate bus services is approximately $ per hour. This suggests that the quoted price per hour proposed by Nashville MTA is fair and reasonable relative to the cost of service to Nashville MTA. For additional comparative purposes, we compared the hourly rates quoted by Gray Line for the commuter services it operates for RTA. These rates were competitively bid by RTA in 2014 and were found to be the lowest cost offered from responsive and responsible parties. Because Nashville MTA operates this service in buses that were purchased using State and Federal funds (in contrast with Gray Line, whose cost for equipment is reflected in their hourly rate), Gray Line s hourly rate was adjusted downward based on recent price discussions RTA had with Gray Line reflecting what Gray Line would propose to charge for service if the RTA provided the buses for commuter operations in lieu of Gray Line securing them. For the pure commuter services (84X and 86X), the adjusted comparable cost per hour was $98.43 per hour. For Route 93 and Route 96X (all day, urban transit services), the adjusted comparable cost per hour for that service was $ per hour. Although Gray Line s adjusted quote for commuter service is lower than the Nashville MTA price of $ per hour, the higher hourly cost for urban transit services would offset these savings. Combining the overall cost of Nashville MTA-provided services, the total comparative cost of service (84X, 86X, 93, and 96X) is $1,668,044 for Nashville MTA versus $1,775,115 for Gray Line. An important consideration is that the Gray Line pricing was developed for comparative purposes only RTA has not proposed to change and Gray Line has not indicated an interest or ability to take on these additional RTA service requirements if requested. Based upon the combination of the cost analysis performed resulting in an effective cost per hour of approximately $ using actual FY2018 operating costs along with the third-party quote comparison, we believe that the rate change proposed by the Nashville MTA is reasonable. STAFF RECOMMENDATION We request the Operations & Finance Committee recommend to the Board to approve the renewal of Contract 1 for regional bus services and Contract 2 for connecting bus services supporting commuter rail. Both of these contracts are for a period of one year beginning July 1, 2018 through June 30, 2019 for the following base amounts: Contract 1 for a not-to-exceed amount of $1,668,044 for regional bus service; and, Contract 2 for $174,618 for connecting buses supporting commuter rail. Approved: Chief Financial Officer September 21, 2018 Date 8

10 NASHILLE METROPOLITAN TRANSIT AUTHORITY OF NASHVILLE AND DAVIDSON COUNTY, TENNESSEE COMMITTEE ACTION ITEM Item Number: OF-A Meeting Date: 09/27/18 Item Title: MTA/RTA MANAGEMENT CONTRACT RENEWAL BACKGROUND In June 2018, the Nashville Metropolitan Transit Authority (Nashville MTA) Board approved a threemonth extension to the FY2018 management contract with the Regional Transportation Authority of Middle Tennessee (RTA) as a result of the RTA Board wanting additional information from Nashville MTA justifying that the proposed management contract increase to $827,400 was reasonable. Nashville MTA is currently operating under a management contract with the RTA in which we provide management services overseeing all operations of the RTA. The current contract was approved by the Board in 2016 for five years with an expiration of June 30, The current annual contract value is $803,400. We have proposed a 3% increase for a total annual contract of $827,520 which has been included in the FY2019 budget. The contract terms include a provision that allows the compensation in the contract to be adjusted beginning July 1, 2017 and each year thereafter for the life of the contract by mutual agreement of both parties. The contract states that MTA Staff will provide executive leadership and administrative support for the RTA to carry out Financial Duties and Administrative Duties as provided herein, which shall include but not be limited to, operations, maintenance and acquisition of properties, finances, facilities and equipment, and the employment of personnel, or contracting for services, and the execution and implementation of RTAMT powers and duties set forth in Tennessee Code Annotated et. Seq and , et. Seq. all of which MTA is authorized to undertake and accomplish. The contract value has historically been calculated based upon a portion of the Nashville MTA staff s time spent on RTA matters. An analysis was performed looking at what percentage of time the management fee represented of the total wages of specific Nashville MTA departmental staff that spend time on RTA business. FY2015 through FY2017 management fees represented approximately 17.6%, 18.2%, and 17.1%, respectively, of total wages incurred by Nashville MTA departments identified that spend time on RTA business. The budget year of 2018 represented approximately 15.7% of staff time dedicated to RTA business while the FY2019 budget year reflects approximately 15.5%. Although this may seem out of proportion with the overall size of RTA operations compared to the combined Nashville MTA/RTA system (RTA carrying 6.4% of combined riders, and expending approximately 10.6% of the combined agency operating budgets), the overwhelming majority of the Nashville MTA s expenses are incurred in the direct operation of transit service, and the level of administrative support for RTA is actually quite high. The following list, while not exhaustive, gives a good representation of the functions and tasks being performed for RTA by Nashville MTA staff. Customer Relations Call center for customer inquiries Customer counter ticket sales Bulk ticket sales online and phone orders Manage Emergency Ride Home Program 9 Management of consignment sales Management of State EasyRide card program Maintain phone systems for call center

11 Facilities and Development/Engineering Financial Use of bus bays downtown for regional buses Construction management and design support Leasing of stations for special events Acquire property for stations and Park & Ride lots Annual financial audit report Produce monthly financial statements Develop annual operating budgets Management of regional partner bus reserves Accounts payable Cash management Negotiations for banking line of credit Regular banking relationships Maintain accounting general ledgers Planning, Grants and Scheduling Monitor and manage the Transportation Improvement Plan (TIP) submission to Metropolitan Planning Organization (MPO) Grant applications Grant revisions and amendments Grant compliance Quarterly grant reporting to Federal Transit Administration (FTA) Quarterly meetings with system oversight Public hearings on schedule or fare changes Service planning for regional bus service and rail service Management and monitoring all routes for schedule adherence Route adjustments due to change in Park & Operations and Safety Marketing Manage and monitor Gray Line buses Manage and monitor commuter rail services Manage third-party quality control contractor Maintain fare box and ticket vending machines Have supervisors at Riverfront Station for schedule adherence of train and to address customer questions Have supervisors at downtown intermodal facility for schedule adherence and to answer customer questions Provide all radio communications Participate in Federal (FRA) Rail audits Website development and management Create route schedules Manage and promote special events Manage advertising Production of brochures and system maps Social media Develop specifications for procured equipment Provide office space, office equipment, and computer network support Oversee maintenance of rail stations Oversee maintenance of Park & Ride lots Collect and account for passenger fares Invoicing and collection of ticket sales Required annual reporting to various government agencies Manage and complete audit finding action plans to avoid repeat findings Monitor and spot check train parts inventory Audits for train tickets sold Support State Comptroller audits Ride lot locations Title VI plan, compliance, and monitoring Develop FTA-required Transit Asset Management Plan Represent RTA in MPO Technical Coordinating Committee and Policy Board meetings Coordinate and work with MPO and regional partners on annual federal funding allocations National Transit Data base (NTD) monthly and annual reporting to FTA Meet with businesses, municipalities, stakeholders regarding service requests Conduct regional studies Northwest Corridor, Regional Park & Ride, Regional Strategic Plan (nmotion) Support State track inspection audits Procure annual insurance policies for liability, property damage, and director and officers Coordinate with third-party administrator for any accidents or injuries Reconcile monthly regional bus invoices to scheduled service and charge liquidated damage for schedule adherence failures Manage security at Riverfront Station and our downtown transfer facility Inspect third-party vehicles and rail equipment and vehicles and review maintenance records Public information Media relations Public records requests Marketing promotions Printing and distributing of route schedules 10

12 Executive Interaction with regional mayors Budget presentations to Nashville Mayor and Metro Council Public hearings Develop and manage capital budgets Capital project oversight Short-term and long-term planning Quarterly Nashville & Eastern Rail Authority Board meeting coordination Cheatham County Rail Authority coordination Transit-Oriented Development discussions While this is not a completely exhaustive list of duties and responsibilities, it demonstrates the value RTA receives for the management services provided by Nashville MTA staff. If you look at total budgeted general and administrative costs for RTA including the management fee and other administrative expenses (i.e. audit expense, legal expense, etc.), it totals approximately $1.6 million, or 15.8%, of RTA s total budgeted operating costs. In an effort to assess reasonability of this figure, we reviewed the administrative load of peer agencies comparable to RTA using data from the National Transit Database. Identified peers were based on those agencies that: Operate both bus and commuter rail service; Are of similar scope and scale as RTA ( less than $100 million annual operating budget); and, Contract out all (or a significant portion) of their operations. Based on this analysis, the following RTA peers were identified, along with the percentage of budget absorbed in administrative expenses: Regional Transportation Authority of Middle Tennessee 15.8% Central Florida RTA (Orlando, FL) 19.6% Denton County Transportation Authority (Denton, TX) 23.3% Capital Metropolitan Transit District (Austin, TX) 27.9% North County Transit District (San Diego, CA) 28.2% Rio Metro Regional Transit District (Albuquerque, NM) 28.5% STAFF RECOMMENDATION Based upon the explanation above, we request the Operations & Finance Committee recommend the Board approve the new management contract amount for Nashville MTA to manage and oversee all operations of the RTA at an annual cost of $827,400, or $68,960 per month. The contract price shall become effective July 1, 2018 and terminate June 30, Approved: Chief Financial Officer 11 September 21, 2018 Date

13 NASHVILLE METROPOLITAN TRANSIT AUTHORITY OF NASHVILLE AND DAVIDSON COUNTY, TENNESSEE COMMITTEE ACTION ITEM Item Number: OF-A Meeting Date: 09/27/18 Item Title: RESOLUTION FOR FY2019 ANNUAL GRANT APPLICATIONS BACKGROUND The Nashville Metropolitan Transit Authority (Nashville MTA) has the authority to receive federal, state, and local financial assistance for transportation projects. In order for Nashville MTA to apply and receive federal funds, Nashville MTA must comply with Federal Certifications and Assurances and annually submit compliance in accordance to these terms. Federal Transit Administration (FTA) formula funding sources are as follows: 5307 Urbanized Area Formula Funds When the apportionment is made available, Nashville MTA is eligible to use 5307 Urbanized Area Formula Funds, along with the 10% State and 10% Local match. The FY2018 apportionment for the region, combined with the State and Local match, is $28,630, Bus and Bus Facilities Formula Funds Nashville MTA is eligible to use Bus and Bus Facilities Formula Funds. The FY2018 apportionment for the Nashville Urbanized Area, combined with State and Local match, is $2,161,193 (80% Federal/10% State/10% Local) Enhanced Mobility of Seniors an Individuals with Disabilities Program (EMSID) Funds Nashville MTA is eligible to receive EMSID funds for projects that will enhance mobility for seniors and persons with disabilities beyond traditional services that are part of a locally developed and coordinated public transit human services transportation plan. At least 55% of the program funds must be used on capital projects and require a 20% State/Local match; operating assistance requires a 50% State/Local match. The FY2018 Federal apportionment is $760,654 (Federal amount). The Tennessee Department of Transportation (TDOT) funding sources are as follows: Operating Assistance Nashville MTA is eligible for State operating assistance from TDOT. The amount for FY2019 is $4,904,300. Match Assistance Nashville MTA can request a 10% match from TDOT for all federally executed awards for formula funding of capital or planning projects. IMPROVE Act Assistance Nashville MTA can request up to $3 million (requires a 25% match) for capital projects that support public transportation services. 12

14 STAFF RECOMMENDATION The attached resolution comprises the annual submittal of Certifications and Assurances for FTA funds and authorization to submit applications for grants with the FTA, the TDOT, and other grant funding entities. We request the Operations & Finance Committee recommend to the Board: Adopting the attached resolution; Authorizing the application for 5307, 5339, and 5310 funding and State/Local match; Authorizing the submittal of application for State Operating Assistance; and, Authorizing the submittal of applications and execution of contracts for any other federal, state, or local grant funding that may become available during FY2019 for the benefit of Nashville MTA. Approved: Chief Development Officer September 21, 2018 Date 13

15 RESOLUTION #19-01 A RESOLUTION AUTHORIZING THE FILING OF APPLICATIONS WITH THE FEDERAL TRANSIT ADMINISTRATION AND THE TENNESSEE DEPARTMENT OF TRANSPORTATION FOR FINANCIAL ASSISTANCE WHEREAS, the Metropolitan Transit Authority of Nashville and Davidson County is filing applications for funds with the Federal Transit Administration, the Tennessee Department of Transportation, and other grant contracting entities; and, WHEREAS, the Federal Transit Administration is authorized to make grants for mass transportation projects under the Urban Mass Transportation Act of 1964, as amended; and, WHEREAS, it is required by the United States Department Transportation that in conjunction with the filing of these applications that the applicant agree to comply with all Federal legislation, regulations, and guidance pertaining to the requested financial assistance; and, WHEREAS, that since 1995, the Federal Transit Administration has consolidated Annual Certifications and Assurances and requires applicants to annually submit to compliance with said Certifications and Assurances; NOW, THEREFORE, BE IT RESOLVED BY THE METROPLITAN TRANSIT AUTHORITY OF NASHVILLE AND DAVIDSON COUNTY SECTION 1: That the Chief Executive Officer of the Metropolitan Transit Authority is authorized to execute and file applications on behalf of the Metropolitan Transit Authority of the Metropolitan Government of Nashville and Davidson County with the Federal Transit Administration, the Tennessee Department of Transportation, and other grant contracting entities to aid in the financial assistance of capital projects and operations. SECTION 2: That the Chief Executive Officer of the Metropolitan Transit Authority is authorized to execute and file with such applications an assurance or any other document required by the Federal Transit Administration, the Tennessee Department of Transportation, and other grant contracting entities effectuating the purposes of these grants. SECTION 3: That the Chief Executive Officer of the Metropolitan Transit Authority is authorized to furnish such additional information as the Federal Transit Administration, the Tennessee Department of Transportation, and other grant contracting entities may require in connection with the applications or the projects. SECTION 4: That the Chief Executive Officer of the Metropolitan Transit Authority is authorized to execute an agreement on behalf of the Metropolitan Transit Authority of Nashville and Davidson County with the Federal Transit Administration, the Tennessee 14

16 Department of Transportation, and other grant contracting entities to aid in funding of Metropolitan Transit Authority projects. ATTEST: Margaret Behm Secretary Stephen G. Bland Chief Executive Officer Date Date 15

17 NASHVILLE METROPOLTAN TRANSIT AUTHORITY OF NASHVILLE AND DAVIDSON COUNTY, TENNESSEE COMMITTEE ACTION ITEM Item Number: OF-A Meeting Date: 09/27/18 Item Title: TRAPEZE GROUP SOLE SOURCE SUPPORT/WARRANTY AND MAINTENANCE BACKGROUND Trapeze Group enterprise software and hardware products are used by WeGo Public Transit for a variety of operations, including route scheduling, fixed-route operations, Access, payroll, real-time information, call center operations, and customer information. Each year, Trapeze Group provides notice of its warranty and maintenance fees for the various products the company provides. In October 2017, the Nashville Metropolitan Transit Authority (Nashville MTA) Board of Directors approved sole source support/warranty and maintenance expenses for Trapeze software products for the FY2018 operational budget in the amount of $699,272. For FY2019, the sole source support/warranty and maintenance expenses for the same level of support provided by Trapeze Group total $730,000. In addition, future software and hardware purchases are required to maintain and improve WeGo services. These capital and/or operational expenses have been calculated not to exceed $700,000. Future software and hardware enhancements include, but are not limited to, Trip Broker ($300,000); custom interfaces for third-party service providers ($50,000); Transit Signal Operational improvements ($100,000); transfer Computer Aided Device/Automatic Vehicle Location (CAD/AVL) hardware to new vehicles ($100,000); ViewPoint Business Intelligence for analytical reporting; and software enhancements, such as payroll, support/maintenance and replacement parts. These software and hardware purchases would be made based on available funds. CURRENT STATUS In order to maintain the level of maintenance support under Information Technology operations, we request the Operations & Finance Committee recommend to the Board approval to enter into a sole source support/warranty and maintenance agreement for $730,000 with an additional not to exceed amount of $700,000 for future enhancements for a total of $1.43 million. Approved: Chief Administrative Officer September 21, 2018 Date 16

18 New Initiatives & Community Engagement Committee Meeting Agenda Nashville MTA Committee Meetings Metro Nashville Police Department West Precinct 5500 Charlotte Pike, Nashville, TN Please note SEPTEMBER meeting Thursday, September 27, 2018 Committees begin meeting at 1:30 p.m. The NICE Committee will immediately follow the Operations & Finance Committee. NICE Committee Janet Miller, Chair Glenn Farner, Member 1. Call to Order 2. Action Item a. FY2019 Operating Budget Update Ed Oliphant, Chief Financial Officer 3. Other Business 4. Adjourn NICE-A

19 NASHILLE METROPOLITAN TRANSIT AUTHORITY OF NASHVILLE AND DAVIDSON COUNTY, TENNESSEE COMMITTEE ACTION ITEM Item Number: NICE-A Meeting Date: 09/27/18 Item Title: FY2019 OPERATING BUDGET UPDATE BACKGROUND In June 2018, the Nashville Metropolitan Transit Authority (Nashville MTA) Board approved the FY2019 Operating Budget that was contingent upon receiving anticipated Congestion Mitigation and Air Quality (CMAQ) grant awards related to our West End corridor and Madison Express services. While the CMAQ funding was ultimately not awarded to WeGo, some one-time alternative funding for FY2019 was identified and is reflected in the attached updated FY2019 budget. We have also revisited our assumptions for advertising revenues based upon numerous discussions with the Board and have adjusted advertising revenues to reflect a more realistic target. The overall proposed operating budget as compared to last year is still projected to increase approximately $2.7 million, or 3.3%, to $84.3 million in FY2019 from $81.7 million in the FY2018 budget. The following summary highlights the changes and adjustments in revenues compared to the approved FY2019 operating budget: Decrease in Advertising Revenue ($ 208,045) Decrease in CMAQ and JARC ($1,847,570) Additional Federal Reimbursements $2,055,615 Total Revenue Change $ 0 This decrease in advertising to a total of $1 million represents estimates based upon existing business currently under contract as well as discussions with our third-party contractor. This projection is based on the Board s directive regarding our approach to advertising/ branding whereby, there is no advertising on new WeGo buses and a reduction in total wrap advertising. The decrease in CMAQ grant funding is based on our request for a renewal of CMAQ grant dollars being denied for a new three-year period. This funding had been for use on the West End corridor and Madison Express route (Routes 3/5 as well as the Route 36X Madison Express service in its entirety), which dated back to 2012 when this funding was identified to increase service. The $427,350 reflected in the budget for FY2019 represents CMAQ funding that is left over from past grant awards that will be used up during the new budget year. We have identified a one-time award of some Surface Transportation Block Grant (STBG) funding for FY2019, which is reflected through additional federal funding that will be utilized through our preventive maintenance reimbursement funding as explained in the next bullet. The anticipated increase in federal operating reimbursements is based upon an estimate of preventive maintenance and paratransit operating expenses eligible for reimbursement. Federal capital grant dollars are eligible to be converted into operating revenue dollars to reimburse preventive maintenance expenses. Due to the reduction in CMAQ funding as explained above, the estimated reimbursement for preventive maintenance and ADA paratransit expenses reimbursements has increased approximately $2.1 million and will be 1

20 funded through the one-time STBG grant previously mentioned. With a new emphasis on preventive maintenance, we will have additional expenses eligible to be reimbursed through both our capital grant federal 5307 funding and the one-time STBG award. The balance of the remaining federal 5307 capital formula funds after the operating reimbursement will be utilized for capital purposes. STAFF RECOMMENDATION We request the New Initiatives and Community Engagement Committee recommend to the Board the adoption of the above amended revenues totals for advertising, CMAQ and federal reimbursements as explained above for the FY2019 budget. Approved: Chief Financial Officer September 21, 2018 Date 2

21 Metropolitan Transit Authority Proposed Budget for FY2019 9/18/2018 Account Account FY 2019 FY 2018 FY18 vs FY17 % FY 17 FY 17 Number Description APPROVED FINAL BUDGET Budget Variance Var A U D I T E D BUDGET FULL ADULT FARES 5,197,000 4,910, , % 6,471,107 7,715, SENIOR CITIZEN FARE 1,200,000 1,045, , % 1,418,670 1,313, STUDENT FARE 1,360,000 1,261,000 99, % 1,359,142 1,707,400 Passenger Fares 7,757,000 7,217, , % 9,248,919 10,736, ACCESSRIDE FARES 864, , % 858, ,950 Access Ride 864, , % 858, , CONTRACT SERVICES - TRANSPORTATION 1,802,912 1,750,400 52, % 1,693,752 1,687, CONTRACT SERVICES- MANAGEMENT RTA 827, ,400 24, % 803, ,400 Contract Revenue 2,630,432 2,553,800 76, % 2,497,152 2,491, ADVERTISING SALES REVENUE 1,000,000 1,100,000 (100,000) -9.1% 1,007, ,000 Advertising 1,000,000 1,100,000 (100,000) -9.1% 1,007, , MISC INCOME: NON-TRANSPORTATION 111, ,850 7, % 163, , RENTAL OF BUILDING & PROPERTY 924, ,300 11, % 953, , OTHER RECEIPTS 20,000 46,300 (26,300) -56.8% - 46,300 Other Non-Transportation Revenue 1,055,200 1,062,450 (7,250) -0.7% 1,116,824 1,041, LOCAL ASSISTANCE 48,635,900 48,635, % 42,013,600 42,013, STATE ASSISTANCE 4,904,300 4,723, , % 4,653,700 4,653,700 CMAQ 427,350 1,900,000 (1,472,650) -77.5% 1,911,088 1,900,000 JARC & NEW FREEDOM 1,301,110 1,291,320 9, % 704, ,800 Operating Assistance 55,268,660 56,550,720 (1,282,060) -2.3% 49,283,039 49,562, UPWP CAPITAL OPERATING REIMBURSMENT 13,121,924 9,563,300 3,558, % 9,300,000 8,693, CAPITAL ADA REIMBURSEMENT 2,625,000 2,750,000 (125,000) -4.5% 2,500,000 2,500,000 Capital Revenue 15,746,924 12,313,300 3,433, % 11,800,000 11,193,940 TOTAL REVENUE 84,323,116 81,662,170 2,660, % 75,811,744 76,666, /18/2018

22 Metropolitan Transit Authority Proposed Budget for FY2019 9/18/2018 Account Account FY 2019 FY 2018 FY18 vs FY17 % FY 17 FY 17 Number Description APPROVED FINAL BUDGET Budget Variance Var A U D I T E D BUDGET 501-ALL SALARIES & WAGES 34,268,280 33,802, , % 30,827,660 31,909, PTO PTO BENEFITS 4,564,640 3,755, , % 4,258,490 3,591, EMPLOYER F.I.C.A. 2,960,000 2,864,400 95, % 2,644,650 2,715, PENSION 3,030,700 3,136,800 (106,100) -3.4% 3,944,781 3,993, HOSP, MEDICAL & SURGICAL PLAN 13,128,727 12,508, , % 12,556,774 11,442, STATE UNEMPLOYMENT INS. 20,900 15,450 5, % 20,912 15, WORKERS COMP 1,118,500 1,118,680 (180) 0.0% 1,217,897 1,078, FF OTHER FRINGE BENEFITS 601, ,860 (46,840) -7.2% 457, ,890 Labor & Fringes 59,692,767 57,850,140 1,842, % 55,928,203 55,330, PROMOTIONAL SERVICES & PROJECTS 170, ,000 (1,000) -0.6% 127, , MTA SECRETARY 7,500 5,000 2, % 8,045 4, ATTORNEY'S FEES 180, ,000 (20,000) -10.0% 260, , OUTSIDE AUDITING EXPENSE 110, ,800 (36,800) -25.1% 93,177 97, WEB MANAGEMENT 68,000 66,950 1, % 51,193 65, SECURITY SERVICES 1,748,000 1,604, , % 1,387,306 1,228, INTEREST ON LINE OF CREDIT 52,250 77,250 (25,000) -32.4% 36,240 77, BANK SERVICE CHARGES 84, ,635 (23,635) -22.0% 61, , PARATRANSIT OVERFLOW 3,800,000 2,876, , % 3,828,058 2,462, OTHER SERVICES 1,604,810 1,548,075 56, % 1,807,826 1,513, TEMPORARY PERSONNEL 25,000 51,500 (26,500) -51.5% 6,819 51, CONTRACT MAINT - SERVICE 1,445,000 1,269, , % 710, ,930 Services 9,294,560 8,124,500 1,170, % 8,378,818 6,861, DIESEL FUEL 3,932,970 3,808, , % 2,324,312 3,035, GASOLINE 1,047, ,800 71, % 816, , LUBRICANTS 343, ,575 (4,575) -1.3% 318, , PROPANE GAS 6,850 11,330 (4,480) -39.5% 5,013 11,330 Fuel 5,330,280 5,142, , % 3,464,154 4,246, TIRES & TUBES 633, ,900 (25,000) -3.8% 538, , PARTS 3,948,260 4,006,270 (58,010) -1.4% 4,023,296 3,781, M & S GENERAL 762, ,050 28, % 714, , /18/2018

23 Metropolitan Transit Authority Proposed Budget for FY2019 9/18/2018 Account Account FY 2019 FY 2018 FY18 vs FY17 % FY 17 FY 17 Number Description APPROVED FINAL BUDGET Budget Variance Var A U D I T E D BUDGET PRINTING SERVICES 207, ,000 (48,750) -19.0% 102, , OFFICE SUPPLIES 78,500 86,000 (7,500) -8.7% 58,288 85, JANITORIAL SUPPLIES 325, ,000 (66,000) -16.9% 291, , DATA PROCESS SUPPLIES /GENERAL 65,000 75,000 (10,000) -13.3% 62,200 61,800 Parts, Materials & Supplies 6,020,556 6,207,220 (186,664) -3.0% 5,791,096 5,946, ELECTRIC 746, ,850 (95,750) -11.4% 836, , NATURAL GAS 113, ,000 (66,000) -36.9% 106, , WATER & SEWER 63,000 85,000 (22,000) -25.9% 60,781 85, /6 OFFICE TELEPHONES 345, ,000 20, % 217, ,000 Utilities 1,267,100 1,430,850 (163,750) -11.4% 1,220,810 1,386, LIABILITY & PHYSICAL DAMAGE 2,121,800 2,121, % 1,939,283 2,060,000 Casualty and Liability 2,121,800 2,121, % 1,939,283 2,060, LICENSING TRANS VEHICLES % 316 1, DUES & SUBSCRIPTIONS 100, ,500 (30,000) -23.0% 139, , TRAVEL & TRAINING 215, ,250 (74,935) -25.8% 181, , BAD DEBT EXPENSE - GENERAL 1,500 1, % - 3, MISCELLANEOUS-GENERAL 147, ,000 (58,162) -28.2% 96, , POSTAGE 18,000 16,225 1, % 17,481 16, FREIGHT - PARTS 37,000 35,000 2, % 40,085 30, BUS ROADEO EXPENSES 29,000 40,000 (11,000) -27.5% 37,351 37, LEASE/RENT - STORAGE/EQUIPMT 46,000 64,500 (18,500) -28.7% 30, ,000 Other 596, ,875 (188,822) -24.1% 542, ,695 TOTAL EXPENSES 84,323,116 81,662,170 2,660, % 77,265,275 76,666,090 SURPLUS/(DEFICIT) (1,453,531) - RTA Mgmt Fee ($827,520.00) ($803,400.00) ($803,400.00) Taxi Overflow ($3,800,000.00) ($2,876,690.00) ($3,828,058.00) Net Operating Expenses $79,695, $77,982, $72,633, Service Hours Estimated 758, , ,076 Cost per Hour $ $ $ % -0.8% 5 9/18/2018