MEETING MINUTES Piedmont Authority for Regional Transportation Board of Trustees May 14, 2014

Transcription

1 MEETING MINUTES Piedmont Authority for Regional Transportation Board of Trustees May 14, 2014 Board Members Present: Abuzuaiter, Marikay - City Greensboro Austin, Kevin - Yadkin County Besse, Dan - City of Winston-Salem Frye, Darrell Randolph County Johnson, Paul - Surry County Jones, Ronda - Stokes County McQueary, Cheryl NCDOT Board of Transportation Paisley, John - Alamance County Perkins, Andrew - NCDOT Board of Transportation Smothers, Becky High Point TAC Truell, Don - Davidson County Williams, Larry - Winston-Salem TAC Williams, Leonard - Burlington-Graham TAC Others Present: Scott Rhine, PART; Alphanie McCall, PART; Lisa Chislett, PART; David Morris, PART; Pat Webster, PART; Mark Kirstner, PART; Walter Jenkins, PART; Dianna Thomason, PART; Jon Stewart, PART; Kyle Laird, PART; Ruby Randall, PART; Supriya Raghav, PART; Attorney Tom Terrell, Smith Moore Leatherwood; Joe Sanchez, National Express; Ozzie Elliott, National Express; Toneq McCullough, Winston-Salem DOT; Mike Mills, NCDOT Division 7. Chairperson Smothers called the meeting to order. Speakers from the Floor. Chairperson Smothers asked for speakers from the floor. There were none. Consideration of Minutes. Chairperson Smothers asked for comments on the April 9, 2014 minutes. There were none. Motion by: Kevin Austin to approve the April 9, 2014 minutes. Second by: Darrell Frye. Vote: Unanimous. Reports from Board Committees. Finance Committee. Darrell Frye, Chairperson of the Finance Committee, reported that the committee met on April 15 th to discuss the 6 month review of the current year. He reported that the year is in good standing and that PART is financially stable as it proceeds into the next fiscal year.

2 Mr. Frye reported that PART s budget has officially closed out with Guilford County Transportation and that the close out transferred $145,000 to the fund balance with exposure of $80,000 of unemployment benefits that averages to approximately $65,000 of the Fund Balance, depending on filed unemployment. He continued that most of the Proposed Budget is dependent upon grant renewals and receiving new grant funds. He stated that short/long term capital needs will begin that process with the FY15 Proposed Budget. Mr. Frye reported that a salary cap for annual pay increases was set at 3.5% with an average increase being closer to 3% based on performance. He also stated that the Finance Committee discussed the decision to reimburse PART Board members for travel expense for any committee meetings they participate. Chairperson Smothers added that the committee will also need to discuss compensation for members who may not be able to physically attend a meeting but are able to teleconference. Mr. Frye agreed. Patricia Webster, PART s Director of Finance and Administration, presented the FY2015 Proposed Budgets to the Board, referencing the detailed FY2015 Budget Assumptions handout that briefly summarized explanations for the Budgets. Scott Rhine, PART s Executive Director, noted the additional line by line explanations on the actual Budgets, pointing out the consistency of the Space and Furnishings line item for each department. Ms. Smothers commented that the line by line item notes were extremely helpful. Mr. Frye, referencing the handout, asked if gas was placed in the Budget for $4 per gallon. Ms. Webster responded yes, that the gas was for PART Express because the buses run on diesel fuel. Dan Besse asked how PART purchases fuel for buses. Mr. Rhine answered by price proposal solicitations directly to suppliers each time fuel is dropped. Mr. Besse asked if it was typically employee pricing or if it was a set price. Mr. Rhine responded that is a 12-month set price for delivery with the OPIS Daily Average cost for fuel. Ms. Webster continued that revenues are expected to increase by 5%.She reported that SMAP funding was lowered based on receiving 5307 operating funding and that this was the last year PART will receive the JARC funding. Mr. Rhine expounded that JARC represents the operative funding on the Surry County Express route and that there are plans to continue services in Surry County with local revenue options. Ms. Webster reported that the Grants Budget was developed based on grants that are currently approved by the FTA and NCDOT. She summarized that each revenue line on the Grants Budget had assumption notes and the notes are also applicable to the expense lines. She added that there is no expected overrun of the PART match on any grant and that there should be a balanced budget, pointing out that $370,000 will come from the General Fund. Ms. Webster reported that all revenues and expenditures for the TDM Budget were reviewed by Chantale Wesley, PART s TDM Manager. She explained that TDM s revenues are flat and that the same numbers were submitted as last years. She pointed

3 out a large reduction in expenses is a result of the debt service that was paid off in full. Ms. Webster concluded the presentation of the FY2015 Proposed Budgets. Ms. Webster presented the FY2014 Amended GCTS Budget, stating that the Budget was being submitted, per Dixon Hughes, PART s auditing contractor, to close out the fund in FY2014 as a result of elimination of these services. She continued that the majority of the funds being transferred to the General Fund represent PART s potential liability for additional unemployment costs. Public Hearing/Public Comments for the Fiscal Year 2015 Budgets for General, Grants and TDM Funds and FY2014 Amended GCTS Budget. Chairperson Smothers opened the public hearing and asked for speakers. There were none. Larry Williams asked if there will be another public hearing for the FY2015 Budgets at next month s Board meeting. Mr. Rhine answered that no additional public hearings will be held, but a comment period will be open until the June meeting. Motion by: Don Truell to approve Resolution to amend the GCTS FY 14 Budget. Second by: Darrell Frye. Vote: unanimous. Consideration of New Board Business Items. 3 rd Quarter Financial Report. Patricia Webster reported that the General Fund reflects an increase of revenue to expense due to the receipt of additional federal operating funds. She reported that the Vehicle Rental Tax and Vehicle Registration Tax are running at 77% against a 75% budget, resulting in total revenue at 64.8% of the budget because not all of the grants have been invoiced. Those remaining grants will be invoiced at the end of the fiscal year. She reported that the Grants Fund was right on budget and that it will close out FTA grants when FTA opens the system back up to conduct close out procedures. The General Fund Balance is presently at $3.7M. Ms. Webster reported that the Grants Fund reflects both the on-going activity of the HUD Sustainable Communities Grant and two (2) FTA Capital Grants. She stated that revenues are running at 76.4% and expenditures are at 75.7% of the budget. She stated that TDM s revenues are running at 76.5% and expenditures are at 71% of the budget. She reported that the TDM Fund has contributed a net transfer of $75.8K to the General Fund and that it is still on track to return a minimum of the budgeted amount of $30K to the General Fund at year-end. Cheryl McQueary asked where Earmark Funds accounted for in the budget. She stated that because it is a substantial amount of money, it is prudent for the financial reports to reflect it and that the Funds be made a part of PART s public documents for public disclosure. Mr. Rhine responded that the Grants Fund reflected the Congressional Earmark Funds in the FTA Grant 070 at 25% and pointed out that the Funds were earmarked for PART s Intermodal Terminal which is listed as professional services for the terminal project. He added that the Grants Status Report, included in the Board s agenda packet, also disclosed those Funds. Darrell Frye asked if the Treasurer s

4 Report reflected the GCTS Budget. Ms. Webster replied that it did not reflect the GCTS Budget. Dan Besse commented that the Report unnecessarily shows Variances and that the Variances give the appearance that PART is deeply in the red although it is not. He suggested the change of column headings on future Quarterly Reports to provide clarity. Motion by: Larry Williams to accept the 3 rd Quarterly Treasurer s Report. Second by: Ronda Jones. Vote: Unanimous. Overview of Piedmont Together s Comprehensive Work Plan. Mark Kirstner, PART s Director of Planning and Project Manager of Piedmont Together, provided the Board with a very extensive PowerPoint presentation and video that overviewed the history of the HUD Grant, Piedmont Together s accomplished planning initiatives and the program s Comprehensive Regional Plan. Becky Smothers asked Mr. Kirstner if he wanted the Board to accept the Plan as a guide because of its long-term implementation. Mr. Kirstner answered yes; that the goal is to get all of PART s partnering entities and agencies to adopt the Plan to establish a regional vision. Cheryl McQueary asked for the costs associated with PART adopting the Plan, by way of concern of the implementation costs that PART would incur by adopting the Plan. Andrew Perkins added that the Plan is implementing what is already being done on the state level and suggested that PART look into resources that have already been allocated to accomplish the vision of the Plan before committing to adopt it. Tom Terrell, PART s Legal Counsel, stated that under the statues as a regional authority, PART is able to adopt the Comprehensive Plan and that any commitment of funds is separate and by line item basis. Dan Besse recommended postponing action on the Plan and for staff to draft a Resolution that clearly divulges what the Board will be adopting at the next Board meeting. Chairperson Smothers requested for it to be noted in the meeting minutes that the Board was briefed, objections were raised and that the adoption of Piedmont Together s Comprehensive Regional Plan has been tabled for further action. Chairperson Smothers opened a brief discussion on the Town of Kernersville s transportation services for seniors and disabled persons. Scott Rhine explained that PART has been working with the Town of Kernersville to design a new service in their jurisdiction. It was brought to the attention of PART s Director of Operations, David Morris, that the services would have to be formally bid out as required by NCDOT, and that PART would have to follow the bidding guidelines by way of a formal bidding process. Mr. Rhine further explained that the solicitation would require PART to competitively bid against the private sector. Chairperson Smothers asked if the Board recommends that PART submit a proposal that will be competing with the private sector. Andrew Perkins responded yes; that is a regular practice for government entities to competitively bid with the private sector market.

5 A consensus was determined to move forward with submitting a proposal to provide fixed route senior/disabled services for the Town of Kernersville. Departmental Staff Reports. Executive Director s Report. Due to time constraints, Scott Rhine very briefly mentioned that he would provide updates to the Board on the Intermodal Terminal project, property exchange with PTIA and the freight rail connection being analyzed. He stated that the Steering Committee for the Intermodal Terminal project will meet on Monday, May 19th. Operations Report. Due to time constraints, David Morris directed the Board to the detailed Report included in the Board s agenda packet, encouraging the Board to contact him with any questions and/or concerns. Chairperson s Report. Chairperson Smothers reported the contents of a letter that was received from the FTA indicating that the FY2013 Triennial Review Report was considered closed. She continued, per the letter, that corrective actions were taken by PART s staff to resolve the findings in the Report dated November 2013 and no further response was necessary. She then recognized key staff for their involvement in the Review s overall process. Chairperson Smothers adjourned the meeting. The next PART Board of Trustees meeting is scheduled for June 11, 2014 at 8:30am at 107 Arrow Road.