CDTA Budget FY Changing with the Times

Transcription

1 CDTA Budget FY 2008 Changing with the Times

2 The photograph on the cover of this document features CDTA vehicles, customers, facilities and our employees. Included are the new 40 Gillig bus with newly released iride branding and our Rensselaer Rail Station. FY2008 BUDGET Fiscal Year April 1, 2007 through March 31, 2008 Raymond J. Melleady Executive Director Prepared By The Finance and Administration Department Photos taken by Tom Marois Milt Pratt Deputy Executive Director of Finance & Administration Carm Basile Deputy Executive Director of Business Development Appreciation is extended to everyone who contributed to the development of the budget and to those who will implement the plan. 110 Watervliet Avenue Albany, NY Ph (518) Fx (518) For budget and other information about CDTA visit

3 Table of Contents In brief: The Table of Contents is provided to assist the reader in locating key information contained in the Capital District Transportation Authority budget. Information on some of the interesting and significant activities at CDTA can be found in each section of the document. Quick Reference Budget Section Page Revenue Detail 9 Expense Detail 10 Transit Budgets 29 STAR Budget 34 Maintenance Budgets 36 Facilities Budget 39 Rail Station Budgets 41 Finance Budget 48 Human Resource Budget 51 Business Dev. Budget 57 Information Tech. Budget 63 Capital Budget 68 Section Content Page(s) 1. Budget Transmittal Letter from the Executive Director introducing the budget document Budget in Brief Summary of Operating & Capital budgets along with FY2008 revenue & expense details Agency Overview Overview of Board & Executive Department purpose, objectives and budget detail Operating Department Overview of Transportation, Maintenance and Facilities Department purpose, objectives and budget detail. 5. Administration & Finance Overview of Finance, Procurement and Human Resources Departments purpose, objectives and budget detail 6. Business Development Overview of the Business Development Department purpose, objectives and budget detail. 7. Information Technology Overview of the Information Technology Department purpose, objectives and budget detail Capital Budget Overview of FY2008 Capital Budget by nature, funding and purpose. Five-year capital plan Personnel Summary Overview of Personnel assignments by Department and changes from last fiscal year Appendix Sections A. Physical Plant Overview of Facilities and other asset detail. B. FY 2008 Appropriations Overview of Discretionary Funding requests C. Budget Development Overview of process for budget development 78-81

4 FY2008 BUDGET TRANSMITTAL In brief: A balanced budget Fiscally prudent Sustainable Reflects cost containment Aligned with five-year Plan Revenues support expenditures Funds operating, capital, and insurance programs Base fare remains unchanged (last increase 1995) March 20, 2007 TO: FROM: CDTA BOARD OF DIRECTORS, CITIZENS AND EMPLOYEES RAYMOND MELLEADY, EXECUTIVE DIRECTOR I am pleased to present the CDTA Operating and Capital Budget for fiscal year The budget is aligned with our long-standing mission to Transport people safely, reliably and at a reasonable cost. It is balanced and is fiscally prudent and sustainable for the current year. It recognizes that changing demographics of our region require us to shift service and capital investments to meet market demands. It provides modest service increases while anticipating capital and operating needs for the next five years. There are no fare increase plans included in this budget. This past year, we completed a comprehensive Transit Development Plan (TDP). The plan calls for a focus on our most productive routes, which we call trunk services. These routes form the spine of our system and create opportunities for CDTA to increase ridership by improving service on these core routes. In addition, we look to transform neighborhood routes into feeder or support routes that connect communities with our new and improved trunk routes. The end result of this process will be a better transit network that serves more people with enhanced service. We are excited about the possibilities presented in the TDP and look forward to full deployment of its recommendations over the next 2 years. Another exciting development for this year is the unveiling of new service in Saratoga. As one of the fastest growing communities in New York State, Saratoga is a new and emerging market for transit service. Our plan calls for tripling the number of service hours in Saratoga over the next year. This exciting development will be complemented with the addition of new buses, expanded customer amenities and a unique brand identity. We are confident that this will lead to a sizeable increase in ridership in Saratoga. 1

5 FY2008 BUDGET TRANSMITTAL Major Initiatives: Fleet Replacement Strategy Expanding Services Public relations, branding and ridership development Streamlined real time information systems Simple Fare (next steps) Security Enhancements Workforce Development We are projecting a system wide ridership increase of 1-3% for this coming year. We expect to accomplish this by implementing the improvements called for in the TDP, by implementing the service expansion in Saratoga, and by continuing our efforts to brand our service and make it easier to use and understand. Another exciting initiative that will be visible to everyone in the region this year is our fleet replacement project. In the coming months, we will take delivery of 22 new Gillig buses. The new buses are appealing to the eye with our new color scheme and branding format. What is not as apparent, is the number of customer and driver features to be included on the new vehicles along with the many maintenance features that will be appreciated by our technicians who service buses. Our fleet replacement strategy calls for the replacement of 1/12 of our buses each year (approximately 20 buses), gradually upgrading our fleet while upgrading our technical capacities. At the same time, we are embarking on a mid-life overhaul program for existing buses. This will improve the appearance and reliability of these buses beyond midlife and provide customers with updated amenities and features at a fraction of the cost of a new bus. Increasing productivity and efficiency translates into cost control. This budget reverses the trend in the cost of fixed route transportation, which is projected to be per hour, about a 2% reduction when compared with last year s cost figures. This reduction comes despite a number of major expenditures, such as the rising cost of fuel, increases in negotiated wage rates, and the continued cost of unfunded mandates, many of which are beyond our control. Fuel costs, which represent about 7% of our operating budget, have increased by 2.4 million in the last 2 years and remain uncertain and highly volatile. We continue to monitor them and will take appropriate actions throughout the coming year. Several months ago, we reached agreement on a new labor contract with the Amalgamated Transit Union, Local The agreement provides predictable wage increases costs through FY2009. Revised wage scales and performance incentives have improved 2

6 FY2008 BUDGET TRANSMITTAL retention rates, allowing us to fill positions that had been vacant for many years. This has translated into improved service reliability for customers. On a related issue, negotiations with our medical plan providers and employee contributions have helped to reduce the escalating costs of health care benefits. Looking forward, medical insurance premiums and pension costs are likely to increase. Although this budget represents one year, we are keeping an attentive eye on the future. Beyond this year, should subsidy levels remain flat, we will need to explore the options of increasing fare revenue, reducing services or debt financing to balance future budgets. Provided with adequate financial support, CDTA will implement a program of service increases each year, improve and increase the capacity of our park & ride network, install more passenger amenities and continue the fleet replacement and transit development strategies. These and other projects will help us to improve the efficiency, effectiveness, and convenience of CDTA services. The specifics of the budget and factors contributing to any changes from last fiscal year are detailed in the following pages.. Raymond Melleady, Executive Director 3

7 FY2008 BUDGET IN BRIEF In brief: The FY2008 balanced budget totals 64,730,389. Internal transfers from the capital fund are 403,468 to meet anticipated operating expenses. Agency Budget Summary CDTA Budget Summary FY Million The budget is distributed across two major categories: Operating and Capital. These are treated as separate funds for budget purposes. The operating fund finances the dayto-day operations of the Authority. The capital fund contains revenues and expenditures associated with capital acquisitions Operating Capital FY2006 FY2007 FY2008 The operating fund is the primary fund of the Agency. The budget includes revenue from fares, advertising, mortgage recording tax, federal (preventive maintenance) and state funding for operating projects, interest earnings on the operating fund balance, and other operating revenue. The principal operating budget expenditure categories include wages and benefits, maintenance and operating costs. The capital budget revenues include federal and state grant funding, interest earnings on the capital reserve balance, and transfers from the operating fund. Capital expenditures include the acquisition of replacement and expansion vehicles, design and construction of passenger facilities and base improvements, technology projects, and the acquisition of information systems, communication systems, and administrative and maintenance equipment. 4

8 FY2008 BUDGET IN BRIEF In brief: The type of revenue and percentage change from the FY2007 budget is provided in the table and is briefly explained as follows. Explanation of Change: Fares Ridership 1% Saratoga service expansion Advertising Advertising demand with new contract and elimination of bus wraps. MRT Five-year average Operating Assistance State Operating Assistance Federal Formula Funds Local 18b Assistance Interest investment balance interest rates Operating Revenues FY2007 FY2007 Approved Year-End FY2008 Budget to Budget Change Budget Estimate Budget Amount % Passenger Revenue 10,216,800 10,616,800 10,835, ,197 6% Advertising 571, , ,000-51,500-9% Mortgage Recording Tax 9,000,000 11,500,000 11,000,000 2,000,000 22% Operating Assistance 39,326,232 39,326,232 39,683, ,252 1% Rail Station Income 1,556,864 1,556,864 1,622,440 65,576 4% Interest 200, , ,000-50,000-25% Other 698, , ,912 33% 61,569,952 63,760,896 64,740,389 3,170,437 5% Passenger Revenues In the above illustration, passenger revenues include both farebox and contract revenues for school and Access services but exclude Northway express fares. CDTA is projecting a 6% increase over last years budget and 2% increase over last year s actual passenger revenue. This continued increase in ridership is attributed to the success of our SimpleFare initiative and significant improvements in fleet condition and service reliability. In addition, the expansion of services in the Saratoga region is expected to yield some affirmative ridership gains. Advertising Revenue from advertisements are expected to decline this year with the eliminations of full bus wraps and a corresponding decline in demand. Mortgage Recording Tax - The FY2008 MRT projection is based on a five year MRT average. MRT is budgeted to increase by 2 million from last year s budgeted amount, but decline 500,000 from this year s estimated actual. 5

9 FY2008 BUDGET IN BRIEF Operating Assistance - This source consists primarily of State Operating Assistance (STOA), which is budgeted at 28,996,800 and includes assistance for the Northway and Adirondack services. While the proposed statewide budget for state-operating assistance included an 11% increase over last year s subsidy levels, CDTA was one of three properties in the state that received no increase. Other subsidies include the Federal Transit Administration 5307 Preventive Maintenance dollars of 6,874,844 for FY2008. Federal funds have increased slightly over the last three years, which is primarily attributed to the reclassification of Saratoga Springs into an urbanized area. County assistance is projected to remain stable based upon the Governor s Executive Budget Submission. Interest - Interest revenue estimates are based on investment balances of operating accounts and projected interest rates. Investment balances are expected to decline this year with the spending down of our project fund to finance capital projects. Other - This revenue category includes revenue received capital fund transfers and Northway Express revenues, which are budgeted at 403,468 and 525,000 per year respectively. 6

10 FY2008 BUDGET IN BRIEF In brief: The FY2008 budget reflects the best use of available funds for the efficient, effective, and convenient provision of service to the community. The type of expenditures along with dollar and percentage change from the FY2007 budget is provided in the table and is briefly explained as follows. Explanation of Change: Wages Wage adjustments New personnel/services Benefits Medical premium increases Retirement costs M&O Service increases Fuel costs Operating Expenditures FY2007 FY2007 Approved Year-End FY2008 Budget to Budget Change Budget Estimate Budget Amount % Wages 26,949,919 26,910,295 28,932,612 1,982,693 7% Benefits 12,410,970 12,825,417 13,727,074 1,316,104 11% Maintenance & Operations 11,516,514 10,980,921 12,097, ,312 5% Purchased Transportation 3,634,503 3,849,564 3,891, ,210 7% Insurance & Claims 1,287,446 2,116,778 1,237,564-49,882-4% Fuel 4,270,600 4,404,699 4,853, ,000 14% Other 1,500,000 2,673, ,500, % 61,569,952 63,760,896 64,740,389 3,170,437 5% The changes from the 2007 Budget to the 2008 Budget are as follows: Wages - The 7.0% change is driven primarily by service expansion in Saratoga County and wage increases for personnel, FTE increases, and the annualized cost of budgeted positions. The current Labor Agreement with the transit union is for a four-year period, June 16, 2005 through June 16, A total of 31 additional positions are included in this budget; 19 for Operations and Maintenance associated with new service in Saratoga and 5 for insourcing of the Shuttlebug Service on Wolf Road. Three (3) positions were added as call takers in STAR to accommodate significant increases in service demand and 2 positions were added to insource Rensselaer Rail Station maintenance. Remaining positions include a new Chief Information Officer, and a service planner in Business Development. 7

11 FY2008 BUDGET IN BRIEF Benefits - Benefit costs are accelerating due to health premium and retirement contribution increases, and the increase in personnel. Maintenance and Operations - The increase over FY2007 is driven primarily by service increases, the cost of fuel, and workforce development initiatives. The focus for FY2008 is on containing costs except where they directly affect service and ridership development. At the same time the budget recognizes rising costs for non-controllable items. Fuel costs, representing approximately 7% of the operating budget, are increasing 583,000 or 14%. Purchased Transportation This expense line item includes costs associated with purchased transportation for the Northway Express, Access Transit Services, pass through monies for Adirondack Transit Lines (ATL) and non-ambulatory taxi service in STAR. The increase over FY2007 budgeted amounts is driven by increased formula monies, both federal and State, for the ATL commuter services that operate in our service region. Insurance We are projecting a 4% decrease in insurance expenses for this fiscal year. Some of this decrease is attributed to placing the rail stations into our self-insurance program for which we are assuming an additional 1,975,000 in risk for claims. Diesel Fuel Consumption & Cost 5.0 Million FY2005 FY2006 FY Gallons Cost 8

12 FY2008 BUDGET IN BRIEF Operating Revenue Detail Operating Revenue: Budget Est. Actual Budget Percent Change State 44% Revenue Customer 18% Federal 14% MRT 17% Primary Revenue Source State Assistance 44% Customer Revenue 18% Mortgage Recording Tax 17% Federal Assistance (5307) 14% Mortgage Tax 9,000,000 11,500,000 11,000,000 22% Interest Income 200, , ,000-25% Customer Revenue - Route 8,300,000 8,700,000 8,850,000 7% Customer Revenue - Star 355, , ,000 0% Customer Revenue - Northway Comm 525, ,000 0% Advertising - Transit 421, , ,000 0% Advertising - RRS 150, , ,000-33% Transit Contracts 783, , ,600 7% Access Transit Contracts 777, , ,397 2% Rensselaer Rail Income 1,535,600 1,535,600 1,601,340 4% Saratoga Springs Train Station 21,264 21,264 21,100-1% Capital Project Fund 173, , % Operating Assistance: Federal Maintenance 6,120,000 6,120,000 6,874,844 12% Federal Maintenance - Adirondack 1,111,503 1,111,503 1,358,400 22% Federal Operating - Saratoga 483, , % Federal Management Support 45,000 45,000 45,000 0% Travel Demand Management 473, ,400 42,340-91% State Operating Assistance 28,377,000 28,377,000 28,377,000 0% State Operating - Northway Commuter 450, , ,000 0% State Operating - Adirondack 138, , ,800 22% County Assistance 1,917,000 1,917,000 1,917,000 0% Job Access Grants 209, , , % Total Income 61,569,952 63,760,896 64,740,389 5% 9

13 FY2008 BUDGET IN BRIEF Operating Expense Detail Fuel 7% Fringe Benefits 21% Expenses Parts & Tires 5% Quick Fact Salaries 45% Salaries and Fringe Benefits comprise 66% of CDTA s Operating Budget Expense Items: Budget Actual Budget Percent Change Salaries 26,949,919 26,910,295 28,932,612 7% FICA 2,061,669 2,058,638 2,213,345 7% Health Benefits 7,420,301 7,278,861 7,634,429 3% Workers' Compensation 1,500,000 1,500,000 1,800,000 20% Other Benefits 1,429,000 1,987,918 2,079,300 46% Professional Services 1,763,538 1,580,243 1,664,388-6% Materials & Supplies 1,779,095 1,239,060 1,865,940 5% Miscellaneous 477, , ,139 69% Maintenance Services 3,225,740 2,935,831 3,437,579 7% Purchased Transportation 3,634,503 3,849,564 3,891,713 7% Utilities 1,348,672 1,287,520 1,333,070-1% Fuel 4,270,600 4,404,699 4,853,600 14% Parts, Tires, Oil 2,922,300 3,476,066 2,988,710 2% General Insurance 837, , ,564-6% Claims Paid 450,000 1,357, ,000 0% Transfer to Capital Fund 1,500,000 2,673, % Transfer To Risk Management Escrow Payment for Self-insurance Total Expense 61,569,952 63,760,896 64,740,389 5% 10

14 FY2008 BUDGET IN BRIEF In brief: The Capital Budget is comprised of the following categories. Normal Replacement Replacement of an asset that has reached the end of its useful life. The useful life of some assets are clearly defined by the Federal Transit Administration (FTA) others are defined by staff who gauge each assets continued effectiveness according to GAAP. State of Good Repair Required work done to an existing asset in order to keep it functional, efficient, and professional looking. System Improvement Investments designed to improve the system for our customers and employees. This also includes capital required for expansion of services and system growth. Capital Projects Capital projects for FY2008 are budgeted at 18,192,987. Approved but incomplete projects carry over to the following budget year. The FY2008 Capital Budget is funded from the following sources: CDTA 10.1 million (56%), Federal 7.2 million (39%), and State 0.9 million (5%). Type Carryover Comm. Equipment 100, ,000 4% 2% Facilities 1,378,000 1,805,000 59% 10% IT 758,520 1,034,350 33% 6% Operating - - 0% 0% Rail Station 60, ,000 3% 5% Rolling Stock - 12,766,800 0% 70% Security - 470,000 0% 3% Stops, Shelters 20, ,837 1% 3% Support Equipment - 200,000 0% 1% 2,316,520 18,192, % 100% 11

15 AGENCY OVERVIEW In brief: Public Benefit Corporation Formed by an act of the Legislature to provide for the continuance, further development, and improvement of transportation and other services..within the Capital Region Transportation District. Authorized to perform the function of public transportation in the Capital District. The Capital District Transportation Authority (CDTA) was formed by an act of the New York State Legislature in The Authority is a public benefit corporation with a legislative purpose "to provide for the continuance, further development and improvement of transportation and other services related thereto within the Capital Region Transportation District by railroad, omnibus, marine and air." In fulfilling its charge, CDTA has become the premier mobility provider in the Capital Region. CDTA is an important component of the local infrastructure, providing regional mobility solutions to thousands of people each day. For many, CDTA is their connection to vital services including employment, medical and educational needs. For some, it is a lifeline without which they cannot function in society. Continuation of these services requires a significant commitment by the community and a dedicated team of people to organize and manage a very complex and time sensitive operation. CDTA plays a vital role in linking the four counties of the Capital Region. Our services include conventional fixed transit routes, long distance commuter express routes, flexible suburban shuttle routes and paratransit service for people with disabilities. The organization is aggressively positioning itself as the travel mode of choice in order to attract more customers. The transit system serves close to 13 million customers a year. On weekdays, more than 35,000 customer boardings occur on CDTA buses. The system includes 55 transit routes that stretch throughout the four counties, providing service to most major business centers and neighborhoods in the region. The system is convenient for residents, and the route structure serves about 80% of the region s employment locations. Although the size of the system has remained relatively constant, ridership in the past few years has increased by almost one million boardings. While most of the increase can be traced to a major fare restructuring effort, studies show that more ridership gains can be expected from a concentrated effort on service review and improvement programs. 12

16 AGENCY OVERVIEW In brief: Nine members Five-year term Appointed by the Governor Board of Directors The nine member CDTA Board of Directors is responsible for governance of the Agency. Members are appointed by the Governor and confirmed by the State Senate. The Board has three members from Albany County, two members from Rensselaer County two members from Saratoga County, and two members from Schenectady County. Board Members Albany County James S. Cappiello Arthur F. Young, Jr. Denise A. Figueroa Authorizing Environment Rensselaer County David M. Stackrow Wayne L. Pratt CDTA Board of Directors Saratoga County C. Michael Ingersoll Donald C. MacElroy Internal Audit Executive Director General Counsel Schenectady County Henry S. DeLegge Norman L. Miller 13

17 AGENCY OVERVIEW In Brief: Core Purpose: Converting organizational vision into operational outcomes. Core Goal: To carry out the mission of the organization and maintain a positive working relationship between CDTA and its authorizing environment. Organizational Objectives Department Overview Executive Department The overall mission of the Executive Department, working closely with the Board of Directors, is to build organizational capacity and ensure long-term organizational success. This is accomplished through ongoing development of financial resources, relationships with key stakeholders, the cultivation of leadership capacity through all levels of the organization, design and execution of accountability structures and the communication of our mission, needs and accomplishments to a broader audience in the Capital Region and beyond. In an administrative capacity, the Executive Director assists in the relationship between the Board of Directors and the Internal Audit function. General Counsel is an essential component of the Executive Department and provides advice, counsel and advocacy on business matters to Senior Management and Board Members as required. Maintain Financial Stability Enhance Customer Focus Improve Mobility & Access Executive Director Integrate Transportation & Land Use Increase Employee Ownership DED of Business Development DED of Operations DED of Administration & FInanace Chief Information Officer 14

18 AGENCY OVERVIEW Executive Department Annual Summary Executive Department FY2007 Positions FY2008 During the past year, significant focus was placed on service design and delivery, particularly geared toward the long-term, as well as an emphasis on moving the culture of the organization toward more modern and customer-responsive principles. Among the efforts in FY2007: Executive 2 2 Legal Board Chairman, Dave Stackrow kicks off Project Empire with Senator Bruno, ATU President, Warren George and Ed Murphy. A new four-year contract agreement with ATU Local 1321 that provides significant improvements in compensations structures designed to attract and retain new employees. Completed the Transit Development Plan providing a framework for service development moving forward. Initiated the development of an organizational Strategic Business Plan that outlines a process-oriented approach for continuous improvement. Continued development of the internal audit function, with reviews over several key areas of Authority operations. Extensive community outreach in conjunction with the implementation of the Saratoga Springs Service Plan. Development of a Stakeholder Relations Strategy to evaluate and improve relations between CDTA and its authorizing environment. Transition of rail station management from contracted to in-house operation In the coming year, several specific initiatives identified as high priority for the organization will consume the bulk of this functions time and attention: Board Capacity: Continue Board training opportunities, particularly with respect to issues of alternate fuels, federal transportation law, and service design. 15

19 AGENCY OVERVIEW CDTA Community Outreach Efforts Emerging Opportunities: Work with the Chairman and Board Leadership on conformance with current and emerging corporate governance and oversight principles. Compensation Systems: The completion of a compensation study to provide a peer analysis of CDTA s compensation practices for similar positions and responsibilities in the industry. Organizational Structure: Restructuring of the organization to provide for an increased emphasis on information technology and reduced duplication of effort. Stakeholder Relations: Continue to enhance our outside partnerships, specifically focusing on opportunities for ridership growth (i.e.: private operators, colleges and universities, employers). Performance Management: Implementation of new performance management system that evaluates Authority staff on specific goals and objectives for FY2008 aligning individual effort with organizational objectives. Workforce Development: Continue workforce development initiatives building technical capacity to address advanced technologies. In FY2008, the Project Empire initiative will move from skills gap assessment to mobilizing resources that will address deficiencies in training and development programs. Improve Connections: Work with local stakeholders to advance the concept of a multiple hub and spoke network of connections. This design is intended to serve the first and last mile of each trip and includes the construction of transportation centers at main urban hubs and transfer stations at primary pulse points throughout the region. Projected expenditures for these functions is as follows: 16

20 AGENCY OVERVIEW Executive Budget Expense Budget Actual Budget Percent Item Change Salaries 155,855 77, ,319 8% Professional Services 20,000 21,686 20,000 0% Materials & Supplies 1,000 2,174 1,000 0% Dues & Subscriptions % Travel & Meetings 9,014 2,859 9,014 0% Total 186, , ,733 7% Board of Directors Budget Expense Budget Actual Budget Percent Item Change Professional Services 14,000 6,000 14,000 0% Materials & Supplies 5,199 5,000 Travel & Meetings 2, ,000 0% Total 16,000 11,700 21,000 31% 17

21 AGENCY OVERVIEW Legal Department In Brief: Core Purpose: To administer legal services, risk management services and administrative assistance for the Authority, its subsidiaries, and staff. Core Goal: Advice, Counsel & Advocacy for the organization. The Legal Department/Office of the General Counsel provides and/or administers all legal services, risk management services and administrative assistance for the Authority, its subsidiaries, and staff. This includes representation in legal actions commenced to pursue claims, corporate and regulatory governance, contracting, and procurement, representing management in labor disputes, and handling real estate matters. The legal department provides counsel, advice and opinions to the board, the executive director, managers and staff on matters relating to labor, employment, procurement, contracts, grant compliance, environmental compliance, real estate, corporate, legislative, and litigation matters. We also administer claims against the authority for property damage, and no-fault. The legal department advocates for the position of CDTA in courts of competent jurisdiction and before a number of different administrative tribunals. During the fiscal year, the department will continue to focus on providing these services in a manner that conserves Authority financial resources. We will continue to defend pending claims against the Authority, and achieve resolution of those claims in a way that serves the best interests of the Authority. The department has three employees, including the General Counsel, a Paralegal and the Claims Manager. Together, we handle 95% or more of the legal matters and claims against CDTA, its subsidiaries and employees. We also handle the bulk of representation in labor, contractual, and real property matters. Outside counsel is employed where there is a conflict of interest, or where the complexity of a given matter requires additional assistance. In addition to lawsuits and claims, we have shifted our focus to more prevention of claims. The office also supports Operations and Human Resources by securing independent investigation of allegations asserted against Authority employees and contract review, oversight and administration. General Counsel also serves as the Ethics and Procurement Integrity Officer for the organization. 18

22 AGENCY OVERVIEW Claim expenditures are projected to remain level in spite of an increase in the number and severity of third-party claims. There have been no claims of a potentially catastrophic nature. Increases in expenses reflect higher costs of contracting out matters in the few instances where we use outside counsel. We are also seeing higher expenses for resources and legal research. We will continue to work with staff to meet the legal needs of the Authority. CDTA should continue to enjoy the highest caliber of legal services, personalized to meet our special needs, at substantial cost savings and outstanding effectiveness. Legal Department Budget Expense Budget Actual Budget Percent Item Change Salaries 180, , ,468 2% Professional Services 30,000 27,713 50,000 67% Materials & Supplies 5,000 3,192 4,000-20% Travel & Meetings 4,725 3,363 4,725 0% Claims 450,000 1,357, ,000 0% Total 670,662 1,571, ,193 3% 19

23 Operations Overview In brief: Core Purpose: Service Delivery Core Goal: To ensure that Authority resources are maintained and allocated in a manner that supports the mission and vision of CDTA. Deputy Executive Director of Operations Vacant Director of Transportation Patrick Campbell Director of Maintenance Richard Nigro Director of Facilities Mark Wos Transportation Department Transportation The mission of CDTA is to provide safe, reliable transportation at reasonable cost, and it is the function of the Transit Services Department to deliver that service. This department has direct involvement with customers and is intimately associated with CDTA s primary purpose. To the vast majority of customers the bus operators are the face of CDTA. Units within this department include Field Operations, Flexible Services, Albany, Troy and Schenectady Transportation Divisions. The Transportation Department encompasses dispatch and driver supervision, as well as personnel and operations management. The core purpose of this department is the delivery of transportation services safely and on time. Drivers and supervisors are focused on protecting service quality, scheduling work assignments, responding to customers and identifying/reporting safety hazards all to accomplish the mission of the organization. Annual Summary During the past year, the Department continued to place an emphasis on setting the expectations for employment at CDTA with regard to attendance and performance. The new payroll process implemented during the year has provided standard operating procedures for all divisions and minimized the potential for inconsistent and inappropriate practices. Frontline supervisors continue to receive training in their critical roles with specific attention placed on setting expectations, monitoring performance, and providing feedback to the workforce. Additionally, having the ability to communicate with drivers and customers in a professional and sincere manner is required for this position and therefore, considerable focus has been placed on this skill. 20

24 Operations Overview The continued investment in training for our frontline supervisors will have tremendous long-term benefits for CDTA and our customers by providing a keener sense of shared perspective on acceptable and unacceptable performance. Moreover, the new labor agreement that was ratified in June has had a positive impact on overtime costs and missed service providing CDTA supervisors with appropriate resource levels to focus on service quality initiatives. Transportation Highlights Elimination of STAR capacity denials Improved Call Center Operations Fixed Route - Significant Reduction in missed trips. Improved On Time Performance With full implementation of the Field Operations Division, a centralized service management network, CDTA has improved consistency in the administration and enforcement of our service policies. On the street the bus and its driver are no longer a district resource, and this has resulted in a coordinated effort to protect service at the regional level. The Flexible Services division continued to grow and improve. STAR ridership levels continued to climb at double-digit percentages. Trip denials were eliminated with the use of supplemental taxi service that provides additional coverage when requested trips for ambulatory passengers exceeds internal capacity. The process of updating the STAR policies and procedures evolved during the course of the year, as well as upgrades to STAR s scheduling software and phone system. During the year, additional staffing resources were allocated to support phone reservations in STAR. Recently, the Flexible Services Division began the process of in-sourcing the ShuttleBug routes with a targeted date of April 1 for insourcing all of the service. Efficiencies in service operation and quality of service improvements are primary targets for FY2008. For the coming year, there will be a continued focus on enhancing service reliability. This includes working with Human Resources to improve the attraction and retention of operators, with a goal of remaining fully staffed throughout the fiscal year. In STAR, we received 7 new vehicles (all replacement) for revenue service and anticipate delivery of another 7 units (all replacements) in May of this year. These procurements are aligned with CDTA s fleet replacement strategy. 21

25 Operations Overview In FY 2008, Saratoga service operations will be transitioned from the Troy Division to the Schenectady Division to implement the initial phase of the new and improved Saratoga service. CDTA is planning to operate existing services from Schenectady between mid- May and the end of July, at which point the new service will commence. The service will be significantly upgraded requiring additional operators, buses, street supervisors and maintenance personnel. Operational targets for performance are as follows: Customers prepare to board a Route 10 Bus STAR - Zero capacity denials STAR - 90% on time performance STAR - 10% increase in trips per revenue hour Fixed Route - Missed trips will not exceed 0.3% Fixed Route - 88% on time performance Fixed Route - Pay to Platform ratio Maintenance Department The CDTA Maintenance Department exists to assure that the physical assets of the Authority operate as designed for the duration of their useful life. In doing so, the Department supports the following broader goals of the Authority: An Orion VI at the Brake Dynamometer Transit service is operated reliably, with all vehicle design features operating as intended. The Authority s assets are kept physically attractive. Ensure that advancements in technology are matched with investments in workforce development so that CDTA technical capacity is able to meet future demand. Establish clear career paths for maintenance staffing that identify required skills and competency based promotional opportunities. 22

26 Operations Overview All Authority assets are physically safe and accessible for employees, customers and the general public. Authority resources are used efficiently to assure that the maximum possible amount of resources are invested into services that directly benefit customers. Maintenance Highlights Project Empire Workforce Development Pay for Performance Improved Climate Control Performance Strategic Fleet Replacement In carrying out its goals, the Department oversees the functions of running repairs, overhaul, vehicle servicing and inspection, paint and body, inventory management, standards development, and facility maintenance and upkeep. Annual Summary In fiscal year 2007, CDTA continued refining the systems that drive maintenance operations. Among other things, this included the further refinement on the use of a comprehensive asset management system (Spear). Through more in-depth use of our maintenance information system, CDTA has better access to useful information on fleet repair efficiency and effectiveness. As a result, Managers and Board Members are able to receive routine reporting of maintenance key performance indicators that include mean distance between failure and completion of timely preventive maintenance inspections. In addition, significant progress has been made with technical proficiency standards for maintenance training. Training and testing programs instituted in the previous fiscal year continued to show results in improving the overall technical competency of our maintenance workforce. We have continued our work with the Amalgamated Transit Union, and local community schools in developing a Career Ladder Partnership program, which has assisted in addressing longer term recruitment, retention, and development issues outlined in the five year Strategic Business Plan. This program is named Project Empire, and is a statewide initiative, spearheaded by CDTA and the ATU for all Upstate Authorities wishing to participate in building technical capacity. 23

27 Operations Overview Despite these improvements in training and access to information, maintenance operations continues to face an uphill battle. The fixed route fleet has gone beyond its midlife; a point at which major components are expected to need rebuilding or replacement. This stage of fleet maintenance is traditionally the most unpredictable and costly for operations. From a facility perspective, the overhaul of the Albany maintenance facility continues to pay dividends. This included a new stockroom facility, lighting, flooring and appearance upgrades. These upgrades are also scheduled for Troy and Schenectady in the upcoming capital budget. The brake dynamometer, installed during the year, assisted CDTA in being proactive in diagnosing brake system defects. It has also further enhanced safety, reliability and efficiency for the organization. The Director of Facilities has made improvements in the general state of repair of CDTA s facilities, including a comprehensive inspection and repair of all of bus lifts in the maintenance divisions. And the Inventory Manager has improved the organization and availability of parts in each of the stockrooms. These departments assist maintenance operations in achieving its mission. CDTA prototype Gillig with new branding arrives, March 2007 In the coming fiscal year, major initiatives for the Maintenance Department will include: Strategically replacing and upgrading our fixed route fleet of buses. Improvements in inventory management intended to minimize inventory levels and maximize availability. Begin performing mid-life overhaul work on a significant percentage of our fleet that requires extended life to flatten the fleet age in coming years. The continued development of Project Empire - a statewide initiative for the development of current and future technical workforce requirements. Continued development of our foremen in conjunction with the Human Resources training opportunities. 24

28 Operations Overview Enhanced focus on fleet appearance. Utilization of a newly procured wrecker with an emphasis on reduced response times and cost effectiveness. Continued interface with Spear and other major software application such as Munis (payroll). Major Projects this year Albany Elevator Replacement Call Center Relocation Albany parking lot Refurbishment Shelter Maintenance Initiative Facilities Department The Facilities department is responsible for the physical plant and equipment owned by CDTA along with maintaining the park and ride lots and the bus shelters. With bus transportation being the major focus, the facilities department will assist by removing facilities related issues from transportation and maintenance so they can focus their personnel on the daily task of providing bus service. Due to the age of some of the facilities, challenges lie ahead to modernize these facilities and bring them into full compliance with current federal and state statutes and laws. The goals of the department are: 1. Develop adequate maintenance and supervisory staff that perform preventive maintenance and repairs at each of the facilities and manages facilities related capital improvements as outlined in the facilities plan conducted by Clough Harbour & Associates in Formulate and implement a preventative maintenance program for all facilities with standard task times for routine functions that are documented in the maintenance information system. The intent of this program is to reduce unnecessary breakdowns and premature replacements and maintain a continual state of good repair. 3. Repair or replace equipment that has become outdated or is no longer in code compliance and continue to maintain all other existing equipment. 25

29 Operations Overview 4. Oversee a bus shelter program that will replace, maintain and clean the existing shelters and install new shelters as needed. The department will continue to focus on the above stated goals and objectives along with establishing roles and responsibilities for its personnel, inputting and organizing the preventative maintenance program and continuing to implement the capital improvement program designed to upgrade the appearance and function of CDTA facilities and equipment.. Facilities Highlights Insourcing of RRS maintenance functions. Security enhancements and access control system wide. Continued implementation of Facilities Master Plan. Annual Summary During the past year a number of large capital projects were completed or are in the process of being completed. Upgrades to the control systems for the bus storage garages at all 3 divisions were completed. New ventilation systems were installed at the paint shop in Albany and the maintenance bays in Troy and Schenectady. This project provided an improved airflow and associated distribution to those areas. Some initial paving and catch basin repairs occurred in Albany to prepare for a large paving project in the future. The majority of the construction for a new access point and security gates is nearly complete in Troy. Final work will occur in the spring. Troy and Schenectady Garages are in the process of receiving code compliant fire alarm systems. An Access Control System was completed at all 3 divisions providing greater security and control of people entering the properties. 26

30 Operations Overview This year, the focus on improved safety and ADA compliance will continue. Currently, designs are underway in the following areas: Rensselaer Rail Station Washington & Lark Shelter Providing a new code compliant fire alarm system at the Albany Division. Installing a new bus exhaust system at the Albany Division. Modifying and increasing the air flow in the Albany Maintenance area. Developing the installation of a new ADA compliant elevator at the Albany Facility. Remodeling the 1 st and 2 nd floor bathrooms to provide ADA Compliance. Plans to renovate and modernize the Technical Training Center. A new fuel monitoring system will be installed at all 3 divisions bringing the properties into code compliance with the DEC and minimizing the labor required under the current system. At the rail stations, security continues to be the focus, particularly in Rensselaer. There are a number of projects near completion such as: Upgrading the parking garage lighting to provide for a safer environment. Installing bomb resistant trash containers on the main concourse. Installing bollards on the main parking deck for better traffic control, pedestrian safety and limiting access to the main entrances. Installing canopies over the front and rear entrances to protect customers as they enter and exit the facility. Installing a card access system for our new space at the station and adding a vehicle access gate in the south parking lot. Plans are also underway to design upgrades to the main parking lot such as o Install a new sidewalk providing safe passage from the outer parking areas. o Upgrading the site lighting. o Installing a canopy over the ticket booths. o Resurfacing the parking lot. 27

31 Operations Overview Measuring Cost of Service Quick Facts: Projected Service Hours 650,544 Projected Service Miles 7,819,580 Cost Per Service Hour Cost Per Service Mile 7.04 Bottom Line CDTA is providing more service and doing it more efficiently. Cost efficiency can be thought of as a relationship between service production and service inputs. In basic terms, it is asking the question how much of an output do we get in exchange for our input of resources (i.e. labor, equipment, fuel, etc.). The outputs can easily be converted into measurements of revenue miles or hours. In contrast, service effectiveness refers to the relationship between service outputs and service consumption. In basic terms, it is how much value the customer (and community) gets from the service we provide. Measures of efficiency and effectiveness are important, because we cannot manage what isn t measured. FY2007 F72008 Percent Total Operating Budget 61,569,952 64,740,389 Change Subtract Unrelated Cost STAR Paratransit Service (estimated) 4,100,000 4,250, % Purchased Transportation Northway 1,520,000 1,510, % Purchase Transportation ATL 1,111,503 1,358, % Purchased Transportation Rural 500, % Access Transit Inc. 752, , % Rensselaer Rail Station 1,163,996 1,699, % Saratoga Rail Station 21,264 84, % Total Deductions 9,169,663 9,695, % Total Transit Budget 52,400,289 55,045, % Total Service Hours 604, , % Total Service Miles 7,194,000 7,819, % Cost Per Service Hour % Cost Per Service Mile % 28

32 Operations Overview Albany Transit Budget Expense Budget Est. Actual Budget Percent Item Change Albany Transportation Positions FY2007 FY2008 Albany Senior Manager 1 1 Superintendent 1 1 Administration 1 1 Supervisors 3 3 Operators Operator 6,383,520 5,848,522 6,564,250 3% Driver Trainee 119, , , % Transportation Admin 214, , ,595-20% Trans Supervisor 157, , ,495 4% Total Albany Salaries 6,874,708 6,483,770 7,147,340 4% Albany Transit Budget Highlights 154 Bus operators 289,000 Service Hours Primary Routes 1, 2, 10, 13, & 18. Professional Services 40,000 77,544 45,258 13% Temporary Help 4,000 9,070 8, % Fuel 1,795,000 2,448,194 1,945,209 8% Oil & Lube 135, , ,425 8% Tires & Tubes 255, , ,785 1% Materials & Supplies 26,000 31,632 30,000 15% Dues & Subscriptions Purch Trans Adirondack 1,111,503 1,111,503 1,358,400 22% Travel & Meetings 11,227 27,334 25, % Subtotal 3,377,730 4,097,242 3,818,077 13% Subtotal Albany 10,252,438 10,581,012 10,965,417 7% 29

33 Operations Overview Schenectady Transit Budget Schenectady Division Positions FY2007 FY2008 Schenectady Expense Budget Est. Actual Budget Percent Item Change Superintendent 1 1 Administration 1 1 Supervisors 3 3 Maint. Supervisors 2 3 Maintenance Fixed Route Saratoga Springs Operator 2,471,040 2,524,735 2,557,599 4% Saratoga Service 288, , ,516 Transportation Admin 86,358 86,683 94,844 10% Trans Supervisor 157, , ,495 4% Total Schenectady Sal 3,002,398 2,896,546 3,514,454 17% Schenectady Budget Highlights 83 Bus Operators 114,00 Service Hours 43,000 Service Hours added for Saratoga Fuel 800, ,571 1,108,965 39% Oil & Lube 12,000 32,409 35, % Materials & Supplies 2, ,500 0% Subtotal 814, ,751 1,146,465 41% Subtotal Schenectady 3,816,898 3,712,298 4,660,919 22% Primary Routes - 55, 63, & 70 30

34 Operations Overview Troy Transit Budget Expense Budget Est. Actual Budget Percent Item Change Troy Troy Division Positions FY2007 FY2008 Superintendent 1 1 Administration 1 1 Supervisors 3 3 Maint. Supervisors 3 3 Maintenance Fixed Route Saratoga Springs Operator 3,500,640 3,851,623 3,623,125 3% Transportation Admin 90,000 91,997 88,618-2% Tran Supervisor 157, , ,495 4% Total Troy Salaries 3,747,640 4,097,059 3,874,238 3% Temporary Help 2, % Fuel 1,100,000 1,105,363 1,344,263 22% Oil & Lube 20,000 47,669 48, % Materials & Supplies 1,000 6,497 2, % Troy Budget Highlights 85 Bus Operators 160,000 Service Hours Primary routes 22, 82, 85 & 87. Subtotal 1,123,000 1,159,941 1,395,263 24% Subtotal Troy 4,870,640 5,256,999 5,269,501 8% Transportation Grand Total 18,939,976 19,550,309 20,895,837 10% 31

35 Operations Overview Field Operations Budget Field Operations Highlights 11 Street Supervisors 8 Radio Room Supervisors Expense Budget Est. Actual Budget Percent Item Change Field Oper - Administration 85,000 78,700 87,587 3% Street Supervision 994,327 1,118,378 1,029,135 4% Transportation - Enterprise 16, % Field Operations FY2007 Positions FY2008 Total Albany Salaries 1,095,831 1,197,078 1,116,722 2% Management 1 1 Administration 1 1 Supervisors Materials & Supplies 0 0 2,500 Travel & Meetings 0 3,000 Subtotal 0 0 5,500 Northway Commuter Service Thirteen (13) Buses Ridership 180,00 per year Grand Total 1,095,831 1,197,078 1,122,222 2% Expense Budget Est. Actual Budget Percent Item Change Salaries 10, % Purch Trans Northway 1,410,000 1,244,916 1,410,000 0% Repairs 100, ,000 0% Total Expense 1,520,000 1,244,916 1,510,000-1% 32

36 Operations Overview STAR Performance STAR Ridership Over the past several years, significant investments have been made in the STAR system serving persons with disabilities. These investments have successfully eliminated capacity denials, improved on time performance and increased ridership demand for this service. Ridership for FY2007 is estimated to finish the year at 163,206 another record year. Overall ridership numbers can be found in the Business Development Section of this report STAR Trips FY2002 FY2003 FY2004 FY2005 FY2006 FY2007 Est. 33

37 Operations Overview STAR Star Budget Positions FY2007 FY2008 Management 2 2 Administration 1 1 Supervisors Call Takers 0 3 Operators Star Operators Shuttle Operators PT STAR Budget Highlights STAR Bus Operators budgeted 61 68,000 Hours of STAR Service 45,000 Hours Shuttle Service Expense Budget Est. Actual Budget Percent Item Change Operator Flexible Service 1,797,675 1,863,178 1,134,000-37% Operator Shuttle Service 768,000 Flexible Service - Call Takers 96,000 Flexible Serv. Administration 95, ,633 97,190 2% Transportation Admin - WC 26,574 25,750 28,999 9% Dispatch Star 523, , ,650 4% Total Star Salaries 2,442,805 2,486,777 2,665,839 9% Fuel 505,000 4, ,563-23% Professional Services 2,777 3,000 Materials & Supplies 500 1,131 1, % Purch Trans - Flexible Ser 288, , , % Purch Trans Shuttle/Wade 500, ,567 60,000-88% Travel & Meetings 0 5,746 5,000 Highway Tolls 1,500 2,153 2,200 47% Subtotal 1,295,000 1,286,808 1,131,576-13% Total 3,737,805 3,773,585 3,797,415 2% 34

38 Operations Overview Maintenance Performance Despite an increase in the average age of our revenue fleet, maintenance operations continues to improve performance. The graph to the right, illustrates the continued reduction in road calls and the increase in mean distance between failure for buses in service. This translates into fewer service interruptions for our riders and improved system reliability Mean Distance Between Failure MDBF Road Calls Other highlights in maintenance include: 3000 PM on time performance improved from 82% - 95% this year. Climate control system availability has shown significant improvement with the implementation of an aggressive HVAC PM program FY2006 FY

39 Operations Overview Albany Maintenance Budget Albany: Expense Budget Est. Actual Budget Percent Item Change Albany Maintenance FY2007 Positions FY2008 Senior Manager 2 2 Management 5 4 Administration 4 4 Technical Trainers 2 2 Supervisors 8 8 Stockroom 3 4 Maintenance Albany Maintenance 4.8 Million Miles Total 1.2 Million Miles STAR 3.6 Million Miles Fixed Route/Shuttle Maint Admin 480, , ,976-12% Maint Admin 73,829 32,981 74,667 1% Maint Foreman 418, , ,320 4% Maint Training 104, , ,330 4% Stock Room 190, , ,304-9% Bus Maint 3,079,806 2,950,663 3,144,548 2% Total Sal Albany 4,347,356 4,217,463 4,356,145 0% Temporary Help 20,000 40,567 20,000 0% Professional Ser 35, ,000 0% Profess Ser - Project Empire 50,000 32,594 40,000-20% Maint Ser Buses 1,500,000 1,231,500 1,500,000 0% Maint Serv Vehicles 40,000 68,489 40,000 0% Fuel 70,000 63,785 65,000-7% Tires & Tubes % Vehicle Parts 2,500,000 3,004,366 2,500,000 0% Material & Supply Maint 16,540 16,622 16,540 0% M & S Service 40,000 65,505 65,500 64% M & S Bus Maint 1,000, ,918 1,000,000 0% M & S Service Vehicles 42, ,000-52% M & S Fare 10,000 13,015 10,000 0% Dues & Subscriptions % 36

40 Operations Overview Albany Maintenance Budget Continued Travel & Meetings 34,837 30,115 33,000-5% Travel & Meetings 19,106 17,023 18,500-3% Advertising 2,000 5,175 3,000 50% Subtotal 5,379,883 5,080,822 5,366,640 0% Subtotal Albany 9,727,239 9,298,286 9,722,785 0% Schenectady Maintenance Budget Schenectady: Expense Budget Est. Actual Budget Percent Item Change Maint Forman 104, , ,495 55% Bus Maint 707, , ,672 34% Schenectady Budget Highlights Total 2.2 Million Service Miles 22 Maintenance Personnel BRT Express Service added this year. Total Sal Schenectady 812, ,746 1,110,167 37% Maint Ser Buses 2,000 3,507 3,000 50% Maint Ser Ser Vehicle 4, ,000 0% Fuel % Material & Supp Service % M & S Bus Maint 15,000 27,216 27,500 83% M & S Service Vehicles % Subtotal 21,800 31,025 35,300 62% Subtotal Schenectady 833, ,771 1,145,467 37% 37

41 Operations Overview Troy Maintenance Budget Troy: Expense Budget Est. Actual Budget Percent Item Change Troy Budget Highlights Total 2.1 Million Service Miles 22 Maintenance Personnel Maint Forman 156, , ,495 4% Bus Maint 915, , ,672 4% Total Sal Troy 1,072,617 1,078,766 1,110,167 4% Maint Ser Buses 4,000 7,920 4,000 0% Maint Serv Vehicles 8, ,000 0% Fuel % Material & Supply Service 3, ,000 0% M & S Bus Maint 31,000 34,383 31,000 0% Subtotal 46,400 42,861 46,400 0% Subtotal Troy 1,119,017 1,121,626 1,156,567 3% Total Maintenance 11,680,245 11,254,683 12,024,819 3% A Route 22 at the Uncle Sam Bus Stop, Troy 38

42 Operations Overview Facilities Budget Albany Division Expense Budget Est. Actual Budget Percent Item Change Salaries 220, , ,455 28% Maintenance 208, , ,389 4% Subtotal Salaries 428, , ,844 16% Positions Facilities FY2007 FY2008 Senior Mgt. 1 1 Management Shelter Maint. 2 2 Facilities Maint. 3 3 RRS STS Total Albany: Professional Services 72, % Maint Ser Facility 238, , ,000 38% Custodial Services 22, ,500-84% M & S Shelter 42,000 75,823 85, % Travel & Meetings 3,360 3,500 Lease & Rentals 13,367 10,294 6,000-55% Gas & Electric - Albany 557, , ,395-6% M & S Facility 178,405 73, ,400-20% Subtotal Albany 1,124,899 1,014,009 1,095,795-3% 39

43 Operations Overview Facilities Budget Schenectady & Troy Divisions Facilities Budget Highlights Increased Rail Station Oversight Improved Buildings Maintenance Programs Expense Budget Est. Actual Budget Percent Item Change Schenectady: Professional Services 1, % Maint Ser Facility 55,376 39,010 67,000 21% Lease & Rentals % Gas & Electric - Schen 116, , ,480 0% M & S Facility 1, , % Subtotal Schenectady 174, , ,980 7% Troy: Professional Services 3, % Maint Ser Facility 51,503 47,825 62,825 22% Lease & Rentals % Gas & Electric - Troy 106, , ,995 18% M & S Facility 6,117 3,183 6,000-2% Subtotal Troy 167, , ,820 16% Facilities Total 1,896,470 1,854,200 1,975,439 4% 40

44 Operations Overview Rensselaer Rail Station Income Income: Expense Budget Est. Actual Budget Percent Item Change Amtrak 52,000 52,000 57,150 10% Post Office 177, , ,000 0% Office Lease 23,500 23,500 23,500 0% Advertising 150, , ,000-33% Taxi/Vans 34,000 34,000 84, % Restaurants 36,000 36,000 44,000 22% Gift Shop 50,000 50,000 58,350 17% Vending 0 0 ATM Machine 6,000 6,000 6,000 0% Tenant Utilities 168, , ,000-11% Florist % Car Rental 2, ,240 30% High Speed Rail 1,600 Parking Garage 986, , ,000 1% Rensselaer Rail Station Total Revenue 1,685,600 1,724,844 1,701,340 1% 41

45 Operations Overview Rensselaer Rail Station Expenses New Business Development Office Space Expense Budget Est. Actual Budget Percent Items Change Expenses: Salaries 0 24,486 94,914 Fringe Benefits 37,966 Omni Management 80,369 53, % Administrative 51,108 55, % General Liability & Building 83,958 35,338 32,914-61% Insur Janitorial 191, , ,700 2% Security 84,801 68,502 91,800 8% Landscaping/Snow Removal 126, , ,200-4% Repairs 13,309 9, % Elevators 13,092 13,110 14,000 7% HVAC 15,791 56,634 36, % Electric Repairs 33,400 43,052 33,000-1% Gas & Electric 470, , ,000-4% Miscellaneous 250,000 Materials & Supplies 17,000 Plumbing Repairs 4,500 Parking Garage 289, , ,000 11% Total Expenses 1,453,462 1,354,548 1,699,994 17% Surplus / Deficit 232, ,296 1,346-99% 42

46 Operations Overview Saratoga Train Station Budget Expense Budget Est. Actual Budget Percent Item Change Income: Amtrak 15,600 13,371 15,600 0% Amtrak Utilities 2,885 3,091 3,000 4% ATM 2,500 2,143 2,500 0% Interest % Total Income 21,264 19,013 21,100-1% Expenses: Saratoga Springs Train Station Salaries 37,000 15,286 6,210-83% Fringe 5,920 1,167 2,484-58% Professional Ser 1, % Maintenance Ser 17,610 22,137 26,500 50% Gas / Electric 22,200 24,962 24,960 12% Mat & Supp 6,333 3,789 5,200-18% Phone/Cable 3,000 3,165 3,200 7% Janitorial 10,200 12,799 12,970 27% Insurance 4,488 3,749 1,850-59% Miscellaneous 1, ,000 0% Total Expense 109,071 87,053 84,374-23% Surplus / Deficit -87,807-68,040-63,274-28% 43

47 Administration & Finance Overview In brief: Core Purpose: Resource Management Core Goal: To align financial and human resources with current and future needs in the most efficient and effective manner possible. Deputy Executive Director of Finance & Administration Milt Pratt Director of Human Resources Mike Collins Director of Finance Vacant Director of Procurement Stacy Sansky Finance & Procurement Departments Administration & Finance Overall, the CDTA Finance and Treasury Department is responsible for the flow of funds into, and out of, the organization to sustain our core mission. In carrying out this overall mission, our business activities include Revenue Collection and Reporting, Payroll, Vendor Payments/Payables, Grant Recordkeeping, Treasury functions, audit functions (including the related functions of CDTA s Internal Auditor), budget preparation and financial reporting. The integrity of CDTA s fiscal resources is the dominant mission of the Department. During the past fiscal year the responsibilities of the Finance Department were expanded to include purchasing and grants administration. Annual Summary This year, Mortgage Tax receipts will again exceed 12,000,000 due mainly to the low interest rate environment. The majority of the Mortgage Tax receipts will be used to pay operating expenses. The Director of Procurement was successful in developing a format that allows all RFP and IFB packages to be made available on CDTA s website. This greatly enhances vendor access to all RFP/IFB information and increases the level of competition. Another significant accomplishment was opening an account on E-bay where we now list obsolete items for sale. This has more than doubled the revenue received for these items. Last July, the Federal Transit Administration conducted a triennial review, which audits 23 different areas for compliance with federal regulations. During this review only three minor issues were identified and all were corrected before the end of the process resulting in a very positive triennial review report. Also this year CDTA conducted a mini 44

48 Administration & Finance Overview Millions Mortgage Recording Tax FY2005 FY2006 FY2007 Over a five-year period MRT has averaged 11 million dollars triennial review on a new sub-grantee to be sure the sub-grantee is able to comply with 12 areas of federal regulations. This exercise did help identify areas that need improvement. Three RFPs were issued during the year. The first was for our outside accounting services. The contract was awarded to the firm of Lumsden & McCormick, LLP. The second RFP was for an actuary to assist in calculating CDTA s GASB 45 liability. The firm selected for this task is BPH-Harbridge Consulting Group. CDTA decided the third RFP for a financial advisor did not draw enough interest and chose to reissue this RFP with the hope of attracting more competition. During the upcoming year we will work with Executive Staff and the Board to develop a financial strategy to work within the new GASB-45 requirement that will become effective next fiscal year for organizations our size. GASB-45 will have a significant impact on our ability to fund postretirement healthcare benefits. Administration & Finance Positions FY2007 FY2008 Senior Mgt. 2 2 Accounting Treasury 4 4 Purchasing 2 2 Administration 6 6 Training 6 6 Safety & Security The Finance Department will be developing a Capital Reserve Policy to address the upcoming challenges that CDTA will face with limited revenue sources while attempting to purchase approximately 20 new buses every year. At the same time we need to recognize that we want to continue to invest capital money into our facilities and other projects to properly maintain and grow services to the region. An area that will be reviewed for improvement this year is in the financial management system. We will be developing better procedures for tracking various expense items in the project management function to improve the management of expenses. Human Resources Department The Human Resources Department supports all functions of the organization including training, safety, risk management, labor relations, benefit administration, retirement 45

49 Administration & Finance Overview services for the bargaining unit and management confidential employees. The Department is responsible for the professional development of over 600 full time and part time employees. Annual Summary A new collective bargaining agreement provides a number of initiatives that we will build upon. These initiatives cut across the organization with benefits that can extend for several years. They include new pay and performance initiatives that are unique to the transit industry. The new agreement reduces our five-year pay progression scale to three years with pay increases every six months. It also provides a performance based, accelerated pay program that allows bus operators to skip steps within the three-year progression scale and permits a bus operator to reach the top pay rate within 18 months. On the maintenance side of the operation, there are now pay incentives for mechanics that obtain ASE certifications. Depending on the certification, a mechanic can earn up to an additional 1.60 per hour. The agreement also provides a quarterly attendance bonus program as an incentive for all bargaining unit employees. These incentive programs will improve our recruitment and retention efforts, enhance employee productivity, and result in a better service quality for our customers. A newly retrofitted Nova bus with LED Destination Signs this upgrade will match older fleet amenities with our new bus features (top). Through negotiation and restructuring, our health care line item will be reduced. By increasing the office visit co-pays and eliminating one of our health care providers, the first year savings alone is estimated to be 500,000. As a result of the new collective bargaining agreement and compensation structures, we anticipate a reduced training schedule, which will enable staff to concentrate on the professional development of our bus operators. We plan to complete a crisis management program and begin customer service training for our entire bus operator staff. Our goal is to provide every bus operator with a minimum of eight hours of training each year. 46

50 Administration & Finance Overview Operator Vacancies FY2005 FY2006 FY2007 CDTA is fully staffed thanks to a new collective bargaining compensation strategy 38 4 We are preparing to increase the staffing for bus operator positions with the introduction of the new Saratoga Services this summer. The addition of 14 bus operator positions will be the largest increase in our service district in several years. The department will spearhead a new diversity training program for all employees with the objective of providing them with essential skills and knowledge to; discuss the business case for valuing diversity in the workplace; to identify barriers to respecting and valuing diversity; practice skills for recognizing, respecting, and dealing with differences; and reviewing strategies for valuing diversity in the workplace. We will begin the diversity training for the management staff in the spring and follow up with bus operators and maintenance employees. Diversity a core value at CDTA. Another core value at CDTA is the recognition of individuals that contribute to the success of our organization. We will revamp our Safety Awards Program to recognize superior performance within CDTA. Along a similar theme, the Leadership Group will develop and recommend a new Employee Recognition Program to recognize and acknowledge employees who have gone above and beyond the scope of their job. Awards will be based on CDTA strategic goals and objectives. As CDTA continues to become an employer of choice, these recognition programs will help us to improve morale, and create a culture based on hard work, recognition and teamwork. A new initiative to be conducted this year is a compensation study for the Authority Staff. It has been over 20 years since an independent compensation study has been conducted for CDTA staff, and in the competitive Capital District environment it is important to be in position to attract and retain good solid professionals. Our goal is to provide competitive salaries to our staff and to be fair. The study recommendation will be reviewed and approved by the CDTA Board of Directors. 47

51 Administration & Finance Overview There are several risk management initiatives that will take place this year. We will begin a mobile bus camera pilot project with the next order of new buses in an effort to enhance the protection of our employees, the general public and our property. In addition to the bus camera project, we are in the process of replacing an antiquated facility camera system with a new digital system to improve facility security. We will also conduct a security review of our three transit properties similar to a review that have been conducted at our rail stations. We will continue facility enhancements to the rail stations as summarized in a 2005 security review. Lastly, we will develop a new accident determination program to identify preventability in workers compensation accidents. The goal of this program will be to reduce on-the-job accidents and provide a safer workplace for our employees. Finance Budget Expense Budget Est. Actual Budget Percent Item Change Salaries 552, , ,158-1% System 114, , ,498-12% Wages Treasury 105, , ,970 6% Total Salaries 771, , ,626-2% 48

52 Administration & Finance Overview Finance Budget Continued Finance Targets GASB-45 Financial Strategy Long-Term Capital Financing Plan Business Process & Task Analysis within New Org. Structure Prof Services - Audit 71,000 65,417 71,000 0% Prof Services - Armor 7,100 4,257 7,100 0% Temporary Help 5, ,000-60% Investments Manager 8,000 9,730 9,730 22% Invest Mgr Cap Proj 30,000 28,131 25,000-17% Mainten Ser Account 2,000 1,510 1,600-20% Mainten Ser Account 3,283 3,500 Tickets & Passes 54,000 67,077 70,000 30% M & S - Accounting 8,000 12,259 14,000 75% M & S - Treasury 4,200 2,347 3,000-29% Dues & Subscriptions 1, ,000 0% Travel & Meetings 8,423 11,998 8,000-5% Bank Fees 4,000 1,217 1,500-63% Interest 5, % Advertising 1, % Sub Total 208, , ,430 4% Bank Fees 1, ,000 0% Lease & Rentals 2, % Lease & Rentals 18,000 24,096 25,000 39% Lease & Rentals 1, % Telephone 75, , ,000 40% Subtotal 97, , ,000 34% Total 1,078,064 1,135,099 1,106,056 3% 49

53 Administration & Finance Overview Procurement Budget Expense Budget Est. Actual Budget Percent Item Change Procurement Targets Increase salvage value of disposal inventory using newly formed EBAY account Business process definition & Analysis Continue development of long-term contracts that provide cost benefits and consistency for CDTA Purchasing Authority 52,250 52,365 90,079 72% Purchasing System 33,000 28, % Total Salaries 85,250 81,339 90,079 6% Dues & Subscriptions 30,000 29,143 30,000 0% Profes Service General 10, ,000 0% Maint Service General 4,000 1,565 4,000 0% Maint Service General 1, ,000 0% Maint Service General 1,000 10,382 10, % Mat & Supp General 115, , ,000 0% Mat & Supp General 500 1, % Mat & Supp General 500 1,287 1, % Travel & Meetings 5,000 Advertising 11,000 12,614 11,000 0% Subtotal 173, , ,700 8% Total 258, , ,779 8% 50

54 Administration & Finance Overview Human Resources Budget Human Resources Targets Diversity Training for CDTA Employees Updated Policy Manual Available via Website Update and Publish Employee Rule Book Implement New Performance Mgt. Plan for Authority Staff Complete and Distribute Compensation Study Expense Budget Est. Actual Budget Percent Item Change Personnel Salaries 310, , ,621 26% Training Wages 227, , ,795 7% Personnel Other Sal 111,810 93,458 53,972-52% Total Salaries 649, , ,388 6% Profes Servic - Personnel 50,000 87,739 40,000-20% Profes Ser - Physicals 62,500 70,694 70,000 12% Profes Services - Training 100, , ,000 0% Fingerprinting Fees 8,500 13,533 11,000 29% Profes Ser. EAP 13,000 10,877 15,000 15% Temporary Help 15,000 4,114 15,000 0% Maintenance Service 15,000 4,560 5,000-67% Security Services 150, , ,000 0% Roadeo 15,000 11,223 15,000 0% Awards 45,000 55,109 75,000 67% Misc Exp awards 6,500 6, % M & S Personnel 16,000 14,134 16,500 3% M & S Safety 15,000 25,419 15,500 3% M & S Training 20,000 18,372 21,000 5% Property Insurance 76,000 76,000 79,800 5% Liability& Phys Damage Ins 662, , ,000 0% Other Insurance 11,000 7,209 11,000 0% 51

55 Administration & Finance Overview Human Resources Budget Continued Dues & Sub - Personnel 1, ,200 20% Travel & Meetings 8,207 16,113 10,000 22% Meetings Safety Committee 10,000 3,451 10,000 0% Advertising - Personnel 25,000 14,122 20,000-20% Subtotal 1,324,707 1,326,743 1,343,000 1% Trainer Dave Douglass providing instruction FICA 2,061,669 2,058,638 2,213,345 7% Pension 409, , ,000 9% Pension CDTS # 1 550, ,486 1,073,300 95% Health Care 7,193,284 7,204,389 7,502,413 4% Disability 100, , ,000 8% Life Insurance 100, , ,000 11% Unemp Ins CDTS # 1 30,000 84,948 50,000 67% Unemp Ins CDTS 10,000 9, % Unemp Ins CDTS # 2 20,000 33,576 25,000 25% Workers' Comp 1,500,000 1,500,000 1,800,000 20% Uniform Allowance 105, , ,000 19% Tool Allowance 38,000 44,690 45,000 18% Meal Allowance 42,000 53,083 53,000 26% Uniform Laundry 23,000 39,665 40,000 74% Felonious Assult 2,000 1,785 2,000 0% Subtotal 12,183,953 12,750,946 13,595,058 12% Total 14,158,451 14,744,222 15,624,446 10% 52

56 Business Development Overview In brief: Core Purpose: Strategy, Marketing & Growth. Core Goal: To market and expand services, ridership and revenue Deputy Executive Director of Business Development Carm Basile Manager of Sales & Marketing Luis Acosta Director of Strategic Planning Kristina Younger Director of Service Planning Tony Grieco Manager of Corporate Communications Margo Janack Business Development Department The Business Development Department is charged with growing the services and the customer base for the Authority. It provides strategic planning, service planning and scheduling, corporate communication, sales, and business outreach, and customer support services. This includes service and corridor plans, delivery of customer information services (call centers, web site design, and printed schedules). The department is responsible for schedule and service development, Swiper and ticket sales (individual and corporate), public and media relations, market research, graphic design and facility advertising. The department also includes the call center at Access Transit Services. Standing goals are to: Grow Organizational Ridership and Resources Grow Organizational Productivity Improve Organization Image and Community Presence Annual Summary During the upcoming year, the department will be involved in a number of projects and activities: Ridership Target meeting an established ridership increase of 1-3% for this fiscal year. Branding this major effort will be fully developed during the next months. It includes a number of activities designed to improve our community image, to simplify our systems and the various components presented to customers and target markets. It involves branding services by category and reflecting this categorization to individual components like buses, signs, schedules and uniforms. 53

57 Business Development Overview Transit Development Plan/Service this will involve a transition from planning to implementation. Several items are scheduled for action, including full development of a service monitoring and evaluation system. This will be developed into an annual process with internal and board reports. Services in the Schenectady area will be examined (using the aforementioned service evaluation system) with route changes or enhancements scheduled for late 2007 or early The foundation for a similar process with Troy routes is scheduled to begin in late Saratoga a new service plan is finalized and full rollout is expected in June This will be the first new service implementation that uses our new branding scheme and a detailed community outreach and communication efforts. This includes system identity, customer information and street sign design, along with a comprehensive corporate outreach effort in the Saratoga community. Service hours in Saratoga will triple as a result of this plan implementation. The ridership target calls for a 50% increase in transit ridership within 2 years. New Office Space RRS Fare Media tokens will be eliminated and replaced with a 10-trip ticket. This will occur in late spring. A 3-Day visitor pass will be introduced and marketed through the hospitality industry this spring. The end of 2007 will see the introduction of a new 30-day rolling monthly Swiper card. As part of this work, the Northway Express fare structure will be examined with the intent of making it consistent with the overall CDTA fare structure and to introduce products that are convenient to that market. Consolidate Call Centers we will merge the telephone information center and Access call centers by July At a later date, the STAR Call Center will be included to form a truly consolidated CDTA call center. The fully consolidated center could be operational by early 2008). 54

58 Business Development Overview Route 5 Service Improvements (BRT) work that is scheduled for this year, includes, establishing design footprints and cost for 20 stations along the corridor (some stations may be candidates for Transportation Center design); development of an organizational and management structure for the service; and, preliminary design of advance signals and queue jumper technology. Operating costs for a stand-alone BRT operation will be finalized and a detailed service model will be readied for decision-making in In addition, 2 new park and ride lots are expected to be operational on the corridor by the beginning of Business Development Targets Ridership Increase 1 3% Web-based Trip Planner New Saratoga Service Aggressive Marketing Strategy Elimination of Tokens with new Fare Media Internal Communications a comprehensive employee communication plan will be developed. It will incorporate themes from the new branding scheme. The intent of the materials is for, employees to always know first. This will include printed materials (newsletters), web site applications, postings, meetings, special events and recruitment materials for the human resource department. Customer Information and Amenities as part of our branding work, a good deal of effort will be focused on information provided to customers and efforts to simplify and improve it. This will be accomplished incrementally. A new Transit Guide will be introduced first, followed by a How to Ride Guide. Next up will be redesigned schedules (throughout the year). A number of real time information components will be introduced. First up is an interactive version of our system map, followed by trip planning schedule information, accessed through the CDTA web site. Both web site components are expected to be live by the end of Finally, a test of solar panel information units at major stops will be initiated as part of the deployment of new service in Saratoga. Outreach and Community Relations collateral materials for a Speakers Bureau have been developed and appropriate presentations will be scheduled throughout the community 55

59 Business Development Overview during the year. A series of one-on-one engagements will be scheduled for the Executive Director, senior staff and board members to expand stakeholder relation s efforts. At the same time, the Authority has committed to expanding and enhancing the development of customer and advisory groups, with emphasis on the disability community in the first half of Total Ridership Millions FY2002 FY2003 FY2004 FY2005 FY2006 FY2007 Est. 56

60 Business Development Overview Business Development Financial Overview Expense Budget Est. Actual Budget Percent Item Change Business Development Positions FY2007 FY2008 Salaries 563, , ,192-26% Scheduling 121, , ,011 81% Scheduling & Inspector 46,299 17,558 23,000-50% Wages Telephone FT 146, , ,851-2% Wages Sales 103, , ,341 20% Senior Mgt. 1 1 Director/Mgr. 4 4 Schedulers Service Planner 0 1 Inspector PT Access Trans. 8 7 Operator FT 4 4 Operator PT 3 3 Sales FT 3 3 Sales PT 2 2 Public Relations Total Salaries 980, , ,395-6% Market Research 50,000 85,593 50,000 0% Temporary Help 10, Schedules 65,000 53,962 75,000 15% Material & Supplies 40,000 32,924 40,000 0% Dues & Subscription 4,000 1,265 3,000-25% Travel & Meetings 9,848 25,099 20, % Advertising 250,000 67, ,000 20% Lease New Office Space 23,500 23,500 23,500 0% Subtotal 452, , ,500 13% Total 1,433,038 1,260,700 1,436,895 0% 57

61 Business Development Overview Budget Est. Actual Budget Percent Income: Change Access Transit Services Inc. ACCESS Transit Services, Inc (ACCESS) is a subsidiary and service of the Capital District Transportation Authority (CDTA) formed in the fall of 1998 to provide mobility management services to the region. Access brokers transportation for Medicaid clients in the Capital District and arranges Medicaid transportation for residents of the Counties of Rensselaer and Schenectady to their nonemergency medical appointments. ACCESS also arranges taxi rides to work and work-related services so that TANF-eligible citizens of Albany, Schenectady and Rensselaer Counties may attain employment, get a better job or retain the job they have. Revenue from Counties 412, , ,147-12% Rrens & Schen Purchas Transp 110,000 97, ,000 45% MTM Contract 36,000 36,000 36,000 0% MTM Purchased Trans 215, , ,000 0% Grant Revenue 1, % Miscellaneous Income 2, % Cattaraugus Income 18,000 Interest Income % Total Revenue 777, , ,397 2% Expenses: Salaries 256, , ,331-13% Fringe Benefits 100,538 73,305 91,566-9% Professional Services 4,000 4,000 4,000 0% Temporary Help 5,000 31,363 5,000 0% Maintenance Services 16,900 16,900 30,500 80% Materials & Supplies 12,000 12,000 12,000 0% Telephone 7,000 7,000 7,000 0% Travel & Meetings 4,000 4,000 4,000 0% Purch Trans MTM 215, , ,000 0% Purch Trans Renns Cty 5, , % Purch Trans Schenec Cty 5, , % Rensselaer & Schen Tokens 100,000 97, ,000 40% Cattaraugus Purchase Transportation 0 18,000 Leases & Rentals 22,000 22,000 22,000 0% Total Expense 752, , ,397 5% 58

62 Information Technology Overview Information Technology In brief: Core Purpose: Optimizing business processes and access to information with use of new technologies Core Goal: To support and develop the Authority s use of technology to provide streamlined decision support systems. Chief Information Officer Vacant Department Overview The mission of the Information Technology department is to provide the most reliable and useful technology tools available while offering support services covering all hardware, software, data, networking and communications for the Authority. The primary management functions of the department include application development, technology support, data services and infrastructure management. The department serves to enhance productivity by improving business processes and the protection and accessibility of information. The department also provides project management services for new technology initiatives for the Authority. In an administrative capacity, the department coordinates with each department to develop policies and procedures, while creating new ways of using hardware, software, data and personnel to achieve the strategic goals of the Authority. Annual Summary Manager of Data Services Systems Infrastructure The Garam Group Applications Administrators A major focus for the Information Technology department this past year was the completion of the Mobile Data Communications System project. Although a large portion of this project has been installed and accepted, a few system features remain to be fully implemented. They include the installation of Traffic Signal Priority equipment along the Rte.5 corridor and a system interface to our maintenance information system, Spear. Our goal this year is to complete the contract requirements, establish a new maintenance agreement, develop sound reporting procedures and ultimately, match the use of the system with the transportation and scheduling requirements of the agency. There are a number of planned capital projects and initiatives over the next year that build on existing technologies and systems in the agency. However, in order to meet these initiatives, we must first evaluate the current state of Information Technology. 59

63 Information Technology Overview Information Technology Positions FY2007 FY2008 IT Management 2 3 *System Hardware 2 2 Applications Admin *Contracted Service Ernest Becker at work in the Server Room With this in mind, a five-year strategic management plan will be developed over the next year to set forth a strategic direction for the department. The plan will provide management and users with a road map for the future of IT, enabling everyone to clearly see project priorities and how specific initiatives fit into the larger development scheme of enterprise-wide technology solutions. The plan s primary management objectives to be developed over the next year include: Alignment of the IT function with the strategic goals of the Authority both, strategically and tactically; Developing a technology investment process or value/cost relationship between IT and other departments, in which IT solutions and the change management process used to identify them are clearly defined and related to the value it adds to the Authority; Fostering operational excellence, that is, the delivery of IT projects and services with high quality, high efficiency, and predictable levels of service, described and measured in business performance terms; Maintaining clear strategic planning strategies through the continued development of the annual capital and 5 year strategic plans, disaster recovery plan and a new information management plan; Establishing and developing a new IT management architecture or structure around distinct management areas, while defining the interdepartmental role of IT staff with other departments. As part of our continuous improvements to the management of our support services function, a number of new performance reporting tools and procedures are also planned for this year including: Adoption of Information Technology Infrastructure Library, ITIL, service delivery practices 60

64 Information Technology Overview Formalization of 24/7 support services agreement with end users and IT staff New IT Department Performance Measures New Daily IT Operations Reporting New Network Performance Monitoring Tools Updated networking, hardware and telecommunications documentation In addition to the above mentioned management objectives, the following capital project initiatives are planned in Saratoga County Radio Communications Expansion - This project is intended to expand wireless radio (RF) communications in Saratoga County, while also improving communications in Albany, Rensselaer and Schenectady counties. This project also includes improvements to our existing communications tower at Crawford Hill in the Town of Rotterdam. Ron Wilson monitors service in the Control Center Information Management Plan - Information access has been an ongoing issue over the past few years across multiple departments due to the large increase in data from our many enterprise information systems. With this in mind, one of the most important goals of the department this year is to help improve the quality and access of information for each enterprise system. An information management study will be conducted this year focusing on business processes, information access tools, database administration and data warehousing. User training, ease of access to custom reports through a web portal and improved reporting tools are some other changes planned for the year. Ongoing efforts to improve information access will remain a high priority for this fiscal year and beyond. Software Replacement/Upgrades - This project includes routine software, licensing, services and upgrades to various enterprise business applications and statistical tools for improved reporting and information flows. Other benefits of this project include the expansion of remote access for staff (telecommuting) and an upgrade to our back office business software, Microsoft Office. These software upgrades will include training 61

65 Information Technology Overview services to take advantage of the many functional improvements, while ensuring a smooth transition for staff. IT Primary Targets Hardware Replacement upgrades Real Time Information Completion of MDCS Project Information Management Plan Centralized Call Center Disaster Recovery Planning (DRP) Upgrades - A significant investment is planned this year to improve the Authority s disaster readiness or contingency planning measures. A number of enterprise systems will receive software and redundant system upgrades to improve the stability and disaster readiness of the Authority s more critical enterprise systems. This includes the setup of a hot site, storage area network, SAN, solution at the Rensselaer Rail Station. This will enable users at Albany, Troy and Schenectady to operate MUNIS, our financial management information system, and other critical business applications at the RRS in the event of a long-term outage at the Albany division. This project also includes the installation of a new uninterruptible power supply, UPS, in the Albany division. These improvements will be supported by continued maintenance of documentation and process analysis flows as part of the disaster recovery and testing processes. Hardware Replacement Upgrades - This project includes the normal purchase of replacement hardware, networking and telecommunications equipment, as well as, other office hardware technology tools due to lifecycle/depreciation (5years) and/or system performance incompatibility. Real Time Information In order to improve the quality and reliability of real time information to our customers, there are a number of improvements to our existing Mobile Data Communications System slated for this year. This includes electronic schedule displays at key transfer centers throughout the region, an expansion of our automatic passenger counters for new vehicles and a web interface, which utilizes short message service or SMS, for mobile phones or personal digital assistants. i.e. notifying a person of the arrival time of the next bus. 62

66 Information Technology Overview Information Technology Budget Customer Call Center Upgrades This project will involve software upgrades to our customer call centers. These improvements will allow for a fully centralized call center and improved call center software for reporting. This project will also include an upgrade to our existing scheduling system by upgrading our scheduling system, Hastus, to version This new version includes web based trip planning, customer complaint processing and other improvements to our existing system. Expense Budget Est. Actual Budget Percent Item Change Budget Highlights Increased emphasis on information technology Added new Chief Information Officer Organizational structure changed to align IT responsibility with authority Information Technologies 119, , , % Total Salaries 119, , , % Computing Services - Helpdesk 116,500 73, ,000 3% Professional Services 10,000 4,114 10,000 0% Telecommunications Service 60,000 62,952 65,000 8% Computing Services 41,763 50,000 Maintenance Contracts 751, , ,824 5% Miscellaneous 25,000 11,343 25,000 0% Travel & Meetings 1,295 9,525 15, % Subtotal 964, ,231 1,076,824 12% Total 1,083,458 1,074,190 1,479,790 37%. 63

67 Capital Budget In brief: Capital Budget Aggressive plan for capital development Some projects span more than one year Investment supports public transportation needs in the Capital Region Provides infrastructure for the future The Capital budget presents the revenues and expenditures associated with capital development and acquisition. It includes funds for vehicles, construction, administrative and maintenance equipment and off-site improvements. These items are distinguished from operating items due to their value (greater than 5,000) and projected useful life (longer than one year). Operating costs or anticipated savings associated with significant non-routine capital expenditures such as personnel, maintenance, and utility costs have been included in the budgets of the responsible division. Capital Investment Categories Each project in the Fiscal Year 2008 Capital Budget is categorized into one of the following types of capital investments: Normal Replacement of Assets - These projects will replace assets at the end of their normal useful life. Normal replacement investments are based on the age and life cycle of capital assets, and are made according to a scheduled program of replacement to keep assets in a state of good repair. State of Good Repair - These projects encompass work performed on or replacement of existing assets to keep them efficient and attractive. An asset or system is in a state of good repair when no backlog of needs exists and no component is beyond its useful life. System Improvement/Expansion - These projects will expand or improve operations, or add new system capabilities or service. Applied to a pre-existing function, a system improvement represents a major advancement over current technology, with the express purpose of adding new system capabilities. 64

68 Capital Budget Normal Replacement Renew Bus Fleets with increasing levels of alternate fueled buses Replaced outdated security cameras Renew Albany Fire Alarm System State of Good Repair Nova vehicle refurbishment project Renew Albany Fire Alarm System Minor Facility Related Upkeep Summary by Purpose Normal Replacement - 9,802,750 As our fleet continues to age, a major portion of the annual capital budget will include the replacement of vehicles. For fiscal year 2008, normal replacement of assets makes up 54% of our capital expenditures. Additionally, replacement of revenue vehicles makes up 83% of our Normal Replacement category (8,135,000) 1. With the remaining 1,667,750 we are able to replace several expiring assets including the camera system located in the Albany facility (350,000), our fuel inventory monitoring system (150,000), the fire alarms in the Albany facility (180,000), and some of our support fleet (200,000). State of Good Repair - 1,875,000 The budget for state of good repair makes up 10% of the 2008 Capital Plan. If all assets could be replaced when they enter their normal replacement periods, expenditure on state of good repair would be somewhat predictable. Maintaining assets in a state of good repair can increase the reliability and efficiency of an asset during its useful life. Quite often the useful life of an asset and its components are drastically different. For example, most transit buses are built on a twelve (12) year chassis but many of the major components that make up the bus have a six (6) year useful life requiring significant investment for state of good repair. The most significant preventative maintenance work budgeted for this year is the introduction of vehicle overhauls (700,000). This will allow us to do predetermined work 1 Revenue vehicles consist of Fixed Route vehicles, Shuttle vehicles, and Paratransit vehicles 65

69 Capital Budget on selected fleets with the intended effect of reducing maintenance costs and increasing reliability for the remaining serviceable years of these vehicles. System Improvement Bus Rapid Transit Project New BRT Vehicles & Passenger Amenities L. E. D. Destination Sign Project (100 buses) Rensselaer Rail Station Improvements Other significant budgeted items funded under state of good repair are preliminary engineering (150,000) which supports the facilities department in examining identified projects for need and purpose, scope of work, drawings and estimated costs. In addition, CDTA will replace the elevator in the Albany facility, making it ADA compliant in the process (350,000) and resurface the parking lot in Albany (200,000). System Improvement - 6,515,237 While system improvement expenditures will make up 36% of the 2008 Capital Plan, it should be noted that 59% of system improvement expenditures come from the Bus Rapid Transit project (BRT). This massive effort will see much of its capital expenditure occur this fiscal year. The significant cost associated with this project is vehicles dedicated to this service (3,331,800). We will also obtain signal priority (360,000) and design queue jumpers (110,000) for the Route 5 corridor. In addition to BRT related projects, we are improving air quality in Albany maintenance by upgrading the air units (300,000) and improving the customer experience by purchasing LED Destination signs (600,000) for our Nova fleet of buses. There is also significant improvement work at the Rensselaer Rail Station where we will upgrade parking lots (700,000). The FY2008 Capital budget is presented on the next page by major categories of expenditures. 66

70 Capital Budget Capital Budget FY2008 FY2008 Project Breakdown By Purpose By Type Percentage Normal Replacement 9,802,750 54% State of Good Repair 1,875,000 10% System Improvement 6,515,237 36% Total by Purpose 18,192, % % Communication Equipment 445,000 2% Facilities 1,805,000 10% Information Technology 1,034,350 6% Rail Station 910,000 5% Rolling Stock 12,766,800 70% Security 470,000 3% Stops, Shelters 561,837 3% Support Equipment 200,000 1% Total by Type 18,192, % 67

71 Capital Budget FY2008 Capital Budget by Funding Source CDTA = 56% Federal = 39% State = 5% Grant Funded: Federal State CDTA Total Bus Replacement 3,090, ,291 3,718,378 7,195,000 Paratransit & Shuttle 752,000 94,000 94, ,000 Non Revenue Vehicles 160,000 20,000 20, ,000 NY5 BRT: Rolling Stock 2,665, , ,180 3,331,800 NY5 BRT: Signal Priority 288,000 36,000 36, ,000 NY5 BRT: Que Jumpers (design) 88,800 11,100 11, ,000 Street Amenities 121,470 15,184 15, ,837 56% 5% 39% Total Grant Funded 7,166, ,755 4,227,842 12,289,637 Non Grant Funded: Operating Facilities 1,520,000 1,520,000 Information Technology 1,008,350 1,008,350 Rensselaer Rail Station 910, ,000 Fleet Mid-Life Overhauls - Nova 700, ,000 LED Destination Sign Replacement 600, ,000 Security 450, ,000 Passenger Waiting 400, ,000 Planning 315, , Total Non Grant Funded 0 0 5,903,350 5,903,350 Total Capital Projects 7,166, ,755 10,131,192 18,192,987 68

72 Capital Budget Five-Year Capital Plan FY2009 FY2013 Major Projects Include Albany Transportation Center Saratoga Bus Facility & Park and Ride Albany Roof Replacement Strategic Fleet Renewal Security Enhancements Improved Passenger Amenities Purpose FY2009 FY2010 FY2011 FY2012 FY2013 Normal Replacement State of Good Repair System Improvement 11,105,000 11,955,000 13,115,000 10,565,000 9,465,000 52% 30% 39% 74% 71% 2,490,000 2,075,000 2,825,000 2,825,000 2,825,000 12% 5% 8% 20% 21% 7,876,879 25,728,650 17,637, ,000 1,075,000 37% 65% 53% 7% 8% 21,471,879 39,758,650 33,577,500 14,365,000 13,365, % 100% 100% 100% 100% Nature FY2009 FY2010 FY2011 FY2012 FY2013 Acquisition 13,199,179 13,518,000 10,405,000 10,855,000 9,755,000 61% 34% 31% 76% 73% Construction 4,766,700 23,035,650 20,787,500 1,125,000 1,225,000 22% 58% 62% 8% 9% Design 781, , , , ,000 4% 1% 0% 1% 1% Operating 2,725,000 2,725,000 2,225,000 2,225,000 2,225,000 13% 7% 7% 15% 17% 21,471,879 39,758,650 33,577,500 14,365,000 13,365, % 100% 100% 100% 100% 69

73 Capital Budget Type FY2009 FY2010 FY2011 FY2012 FY2013 Five-Year Capital Plan by Project Type Communications Facilities Information Technology Operating Rail Station Rolling Stock Security Stops, Shelters Support Equipment Communication Equipment 0% 0% 0% 0% 0% Facilities 3,245,000 20,973,500 17,562,500 1,000,000 1,000,000 15% 53% 52% 7% 7% IT 991,000 1,623, , , ,000 5% 4% 1% 1% 2% Operating 1,025,000 1,145, , , ,000 5% 3% 2% 4% 4% Rail Station 50,000 50,000 50,000 50,000 50,000 0% 0% 0% 0% 0% Rolling Stock 12,904,179 12,250,000 10,950,000 11,400,000 10,300,000 60% 31% 33% 79% 77% Security 365, , , , ,000 2% 1% 0% 1% 1% Stops, Shelters 2,691,700 3,067,150 3,910, , ,000 13% 8% 12% 6% 7% Support Equipment 200, , , , ,000 1% 1% 1% 1% 1% 21,471,879 39,758,650 33,577,500 14,365,000 13,365, % 100% 100% 100% 100% 70

74 Personnel Summary In brief: Facilities headcount increased as a result of insourced Rail Stations Maintenance. Vehicle maintenance headcount increased due to service expansion in Saratoga. Transportation headcount increased due to service expansion in Saratoga. STAR call taker positions added for improved customer response times and accommodate increased demand. BUDGET PERSONNEL SUMMARY Headcount Department Budget Budget Change % Executive Executive % Legal % Total % Operations Senior Mgt % Transportation Management % Maintenance Management % Facilities Management % Transportation Supervisor % Maintenance Supervisor % Technical Training % Administration % Facilities Maintenance % Maintenance/Stockroom % Transportation % STAR Manager % Administration % Supervisors % Call Takers % STAR Operators % Shuttle Operators % PT Operators % Total % 71

75 Personnel Summary STAR shuttle positions added to insource Shuttle Bug Operations. Bookkeeper added in finance to insource RRS accounting function. Increased emphasis on information management. Increased planning capacity to execute transit development initiatives. Administration & Finance FY2007 FY2008 Change % Senior Mgt % Accounting % Treasury % Purchasing % Administration % Training % Safety & Security % Total % Business Development Senior Mgt % Director/Manager % Schedulers % Service Planner % Inspector PT % Access Trans % Tele Operator FT % Tele Operator PT % Sales FT % Sales PT % Public Relations Staff % Total % Information Technology Senior Mgt % Manager % Applications Admin % Total % CDTA Total % 72

76 Personnel Summary Breakdown of Personnel Operations 76% STAR 11% Business 5% Development Administration & 5% Finance Information 1% Technology Facilities 1% Executive 1% Total 100% Information Technology 1% Business Development 5% Administration & Finance 5% STAR 11% Facilities 1% Executive 1% Operations 76% 73

77 Physical Plant In brief: CDTA Physical Plant List Albany Bus Division and Administrative Headquarters Schenectady Bus Division Troy Bus Division Rensselaer Rail Station Saratoga Rail Station Bus Shelters Bus Stops Park and Ride Lots Bus & Rail Facilities Albany Division (110 Watervliet Avenue, Albany) The Albany Bus Facility was originally constructed in 1968 with a floor surface area of approximately 125,500 square feet. Garage additions were completed in 1974 and 1989 and office additions were completed in 1980 and This facility serves as the Capital District Transportation Authority s administrative headquarters and is the Authority s primary bus maintenance facility. The floor surface area of the facility is currently 161,600 square feet. The Albany Division is located on the northwest corner of Watervliet Avenue in Western Albany. There are currently 155 buses assigned to the Albany Division requiring some outside parking to accommodate capacity. Schenectady Division (2401 Maxon Road, Schenectady) The Schenectady Bus Facility was originally constructed in 1974 with a floor surface area of 30,000 square feet. A garage addition was completed in 1987 that increased the total floor surface area to 45,000 square feet. This facility serves as the Capital District Transportation Authority s operating base for Schenectady and Saratoga Counties and houses approximately 50 buses. Troy Division (40 Hoosick Street, Troy) The Troy Bus Facility was originally constructed in 1980 with a floor surface area of approximately 60,000 square feet. This facility serves as the Capital District Transportation Authority s operating base for service to Rensselaer County and houses approximately 60 buses. Rensselaer Rail Station - The CDTA Rensselaer Rail Station, which opened in September 2002, is the 9th busiest station in the country, serving more than 750,000 people each year. The multi-level facility features retail, commercial and meeting space as well as ticketing, customer comfort and travel features and conveniences. 74

78 Physical Plant The Rensselaer Rail Station is an 80,000 square foot building, with 67,000 square feet of floor space. Saratoga Springs Rail Station - The renovated CDTA Saratoga Springs station, opened in March 2004, serves approximately 23,000 passengers each year, primarily for travel to New York City. The new station also serves the Empire Corridor with the Adirondack route, which travels to and from Canada, and the Ethan Allen route, which travels to and from Vermont. It is approximately 8,000 square feet and includes rotating art exhibits, a children s play area, and available retail space. Park and Ride Lots --Region-wide, there are about 2000 available parking spaces in 24 Park & Ride Lots strategically located with access to transportation facilities. There are a variety of ownership and maintenance arrangements, with many shared use arrangements that mutually benefit transit, customers, and the hosting business establishment. NYSDOT or municipalities sponsor most lots and CDTA has specific ownership and maintenance responsibility for the Defreestville and Schodack Town Hall lots. Bus Shelters/Stops There are approximately 225 bus shelters served by CDTA transit services. There is an ongoing program to keep this inventory in a state of good repair and to add to customer amenities according to a set of criteria that gives priority to locations with more than 100 boardings per day, transfer points, and locations where cooperative road owners or adjacent businesses are willing to share in the site preparation or ongoing maintenance of a shelter. There are over 3,500 bus stops in the CDTA system, primarily located within the public right-of-way. CDTA has an ongoing passenger information and amenities program to improve the function and safety of these bus stops. The new iride solar stop design is pictured on the left column of this page. 75

79 FY2008 Appropriation Requests In brief: Why it s important Reduced Congestion Access to Jobs Energy Independence Air Quality Street Network Management Economic Growth Mobility & Freedom for an Aging Population Discretionary Funding Requests Project Description Type Funds Estimated Cost 2007 Fleet Replacement (20% Alternate Fuels) Acquisition ,000, Fleet Replacement (20% Alternate Fuels) Acquisition ,000,000 BRT Vehicles & Stations Acquisition & ,000,000 Construction Saratoga County Expansion Buses Acquisition ,500,000 Saratoga Bus Facility Design ,000 Construction 15,000,000 Total 15,250,000 Albany Intermodal Facility Design ,000 Construction 12,000,000 Total 12,250,000 Advanced Hydrogen Bus (2) R & D ,250,000 76

80 FY2008 Appropriation Requests Summary Description: Fleet Replacement - Transit infrastructure, including a state-of the art fleet, is an essential part of the Capital Region s economic health. Through a variety of initiatives CDTA is striving to become the ride of choice in the region. During the last fiscal year, over 38.5 Million passengermiles were traveled on the CDTA system. If our transit service did not exist or was allowed to deteriorate in quality, at least that much additional travel would be added to the region s roads, and overall mobility and economic vitality would suffer. CDTA has an ongoing need to keep its revenue fleet in a state of good repair. Our goal is to replace one-twelfth of our 225-bus fleet each year. CDTA is also committed to a fleet composition of 20% alternate fuel (hybrid electric) vehicles for regular fixed route service. BRT Fleet: The proposed buses to be purchased would be hybrid diesel electric models. These would have a significantly diminished pollution level than standard diesel buses. CDTA is working with a consortium of other transit agencies to make a large purchase of these buses at favorable prices. These buses would be deployed in CDTA s Route 5 Corridor, between Downtown Albany and Downtown Schenectady. Saratoga Bus Facility: Project would examine the feasibility and scope of a facility to support expanded bus operations in Saratoga County. Project phases are spread out to allow for regulatory approvals, more refined cost estimates, and obtaining project funding/financing. Initial project scope assumes a 55,000 square foot facility adequate to house a 50-bus fleet. Major maintenance would be done at the Albany facility preventive and minor maintenance and fueling would occur here. Indoor bus storage is also assumed and comprises almost half of the estimated square footage. Albany Intermodal Transportation Center - Project would examine the feasibility and scope of an intermodal facility in downtown Albany in cooperation with the Albany Convention Center Authority. This major NYS-sponsored project will provide a 200M convention center for Albany, and the integration of mass transit intercity, tourist coach, CDTA Bus Rapid Transit, commuter services, and CDTA local services into the facility from the beginning will have strong benefits for traffic congestion, air quality, and economic development. Project phases are spread out to allow for coordination with Convention Center staging, regulatory approvals, more refined cost estimates, and obtaining project funding/financing. 77

81 Budget Development Process Budget Planning Process In brief: Annual Process Fiscal Year is April 1 March 31 Clear mission support Stakeholder input is important Technical basis is used Public Viewing Adopted by the CDTA Board Monitored Monthly Modified as necessary The Annual process -The development of the budget is a political and managerial process with financial and technical dimensions. The identification and involvement of key stakeholders in the planning and budgeting process is key to the success of the outcomes. The end product is a Board-adopted budget that meets policy goals and acknowledges fiscal reality. First Step Initiation and Assessment: Budget planning begins each October as the strategic planning team begins the development of the Agency goals. The team, comprised of upper management with staff support, provides oversight on all planning processes, communicates with the departments and divisions throughout the year, reviews and recommends changes in the financial, capital, and service plans, and provides recommendations to Executive Staff on their adoption. The policies, goals, assumptions, and capital and expense projections are coordinated with the budget development. An important part of this first step is an assessment of the financial and schedule both of current year operating expenses and the capital program. Second Step Call for Projects: The capital portion of the budget recognizes and responds to the capital funding cycles and requirements of the major sources of capital funding: The Federal Transit Administration (FTA), the New York State Department of Transportation (NYSDOT), the Capital District Transportation Committee (CDTC), as well as CDTA s internal capital fund. In the fall, there is a call for capital projects from all departments and project managers. This step in the process is critical because the capital projects typically require significant investment and lead time, and have the potential to require on-going commitments of operating funds. Projects are identified by project managers in any department to accomplish the Agency goals. Projects may be nominated by one department (e.g. Operations) that would need to be implemented by another (e.g. Facilities). 78

82 Budget Development Process The criteria used in evaluating the capital projects for inclusion in the budget reflect goals of the Agency: January S M T W T F S January February S M T W T F S February 19 March S M T W T F S March S 20 M 21T 22 W T F S S 24 M 25T 26 W T F S S 24 M 25T 26 W T F S January February March S 20M 21T 22W T F 20 S S 24M 25T 26W T F 20 S S 24M 25T 26W T F S April May June S M T W T F S S M T W T F S S M T W T F S January February March S9 M10 T11 W12 T13 F14 S 5 S6 M7 T8 W9 T10 F S S M T W T F S April May June S 21 M 22T 23 W T F S S1026 M1127T 128 W13T F S S 723 M 824 T 925 W10T F S January February March April S17 M18 T19 W20 T21May F25 S S14 M15 T16 W17 T18 June F25 S S 30 M 31 T W T F S S 21M 22T 23W T F 22 S S 326M 427T 528W 6 T 7 F 19 S S 23M 124T 225W 3 T 4 F S July August September S M T W T F S S M T W T F S S M T W T F S January February March April May June S 24 M 25 T 26 W 27 T F 26 S S 21 M 22 T 23 W 24 T F 26 S S 30 M 31 T W T F S S8 M9 T10 W11 T12 F13 S 4 S5 M6 T7 W8 T9 1 F10 S S 1 M 2 T 3W 4 T 5 F S July August September S 21 M 22T 23 W T F S S1125 M1226T 1327 W14T F 9 S S M T1124 W12T F 13 S April May June July S16 28 M17 29 T18 W19 30 TAugust F27 S S13 M14 T15 W16 September T17 F24 S S 29 M 30 T W T F S S 21M 22T 23W 30T F 21 S S 25M 26T 27W T 1 F 18 S S 222M 323T 424W 5 T 6 F S October November December S M T W T F S S M T W T F S S M T W T F S April May June July August September S M T W T F S S M T W T F S S 29 M 30 T W T F S S7 M8 T9 W10 T11 F12 S 4 S5 M6 T7 W8 T9 F10 S S M T W T F S October November December S 20 M 21T 22 W T F S S1124 M1225T 1326 W14T F 10 S S M T1024 W11T F 15 S July August September October S15 M16 T17 W1830 November T19 F26 S S1331 M14 T15 W16 December T17 F23 S S 28 M 29 T W T F S S 20M 21T 22W 30T 31F 20 S S 24M 25T 26W T 1 F 18 S S 122M 223T 324W 430 T 5 F S July August September October November December S M T W T F S S M T W T F S S 28 M 29 T 30 W T F S S M T W T F S S M T W T F S S M T W T F S October November December S M T W 31 T F25 S S 30 M T W T F23 S S 28 M 29 T W T F S October November December S M T W T F 26 S S 30 M T W T F 24 S S 28 M 29 T 30 W T F S Increase in ridership The project results in more sustained riders on the system. Ensure fiscal responsibility The project improves or a dheres to financial rules or policies and provides the best return for each dollar spent. Support and partner with our community Improve customer satisfaction and system quality Maintain a dedicated and professional workforce Safety and Security The project provides for greater economies or encourages growth in the corridors served through leveraged funding. The project improves customer satisfaction or is in response to customer needs. The project supports a positive work environment that promotes learning and collaboration The Project improves the safety or security of the system for customers or employees. 79

83 Budget Development Process The development of the CDTA operating budget begins with our greatest expense (and asset) labor. The estimation of projected operating staff needs is firmly based in the service plan for the upcoming year. The materials and fuel budget projection is based on current year experience and known contractual factors wherever possible. Administrative and support staffing budget requests are again rooted in departmental support of the overall CDTA mission and goals. New shelter w/lighting, one of the many projects to be evaluated by the committee for capital planning this year. Third Step Evaluation: A Capital Projects Committee comprised of department representatives evaluates and prioritizes each capital project based on how well it satisfies the goals and objectives of the Agency before they are programmed in the budget and subsequent six-year plans. A meeting is held to review the Agency direction and present proposed service levels, revenue projections, and department expenditure targets. An important part of this review is the involvement and feedback from the project managers. The focus is on what CDTA plans to accomplish in the coming year. Capital projects are evaluated based on how well they satisfy the criteria and ranked accordingly. They are prioritized and recommended to the Executive Staff for approval and inclusion in the budget. Again, using the goals and objectives as a guide, department heads develop work plans and operating cost estimates. Fourth Step Preliminary Budget: The management team is now equipped with the information needed to develop the budget. The Finance and Business Development Departments provide information on the expected revenue for the upcoming year from all sources, using information from CDTA s funding partners, ridership projections, and contract revenue estimates. The Finance Department compiles the requests and assembles the analysis information into a preliminary budget. 80