Nashville MTA Committee Meetings Table of Content

Transcription

1 Nashville MTA Committee Meetings Table of Content WeGo Central 400 Dr Martin L King Jr Blvd (formally Charlotte Ave.) Nashville, TN Thursday, December 13, :30PM The NICE Committee will immediately follow the Operations & Finance Committee. OPERATIONS & FINANCE Committee pages 1-19 Walter Searcy, Chair Hannah Paramore Breen, Member NEW INITIATIVES & COMMUNITY ENGAGEMENT Committee pages Janet Miller, Chair Glenn Farner, Member

2 Operations & Finance Committee Meeting

3 Nashville MTA Committee Meetings WeGo Central 400 Dr. Martin L. King Jr. Blvd. (formerly Charlotte Avenue) Nashville, TN Thursday, December 13, :30 p.m. The NICE Committee will immediately following the Operations & Finance Committee. OPERATIONS & FINANCE Committee Walter Searcy, Chair Hannah Paramore Breen, Member Call to Order Discussion Items Monthly Financial Report Compared to Budget Ed Oliphant, CFO OF-D Pg. 1 Monthly Operating Statistics India Birdsong, COO OF-D Pg. 4 Action Items WeGo Central Parking Garage Property Lease OF-A Pg. 9 Ed Oliphant, CFO FY2019 Audit Report Ed Oliphant, CFO OF-A Pg. 10 Computer Equipment, Storage, Software and Related Services OF-A Pg. 12 Rob McElhaney, IT Manager Procurement Policy Update - Greta Beard, Procurement Manager OF-A Pg. 13 Other Business Adjourn

4 NASHVILLE METROPOLITAN TRANSIT AUTHORITY OF NASHVILLE AND DAVIDSON COUNTY, TENNESSEE COMMITTEE DISCUSSION ITEM Item Number: OF-D Meeting Date: 12/13/18 Item Title: MONTHLY FINANCIAL REPORT COMPARED TO BUDGET Attached is a statement of operations for the month ended October 31, 2018 compared to the budget and a balance sheet as of October 31, CURRENT STATUS Chief Financial Officer Ed Oliphant will review the statements at the committee meeting. Approved: Chief Financial Officer December 7, 2018 Date 1

5 Metropolitan Transit Authority Statement of Operations Compared to Budget For the Period Ending October 31, 2018 UNAUDITED Actual Month Month End F / Prior Year Actual Budget Y-T-D F / Annual Month Budget Variance U Y-T-D Y-T-D Y-T-D Variance U Budget Revenue form Operations: Passenger Fares $651,438 $653,062 ($1,624) U $2,688,988 $2,347,651 $2,557,268 ($209,617) U $7,757,000 Access Ride 73,049 69,598 3,451 F 295, , ,522 (1,766) U 864,900 Contract Revenues 233, ,135 7,670 F 840, , ,415 36,595 F 2,630,432 Advertising 87,863 82,000 5,863 F 370, , ,000 (3,874) U 1,000,000 Other Non-Trans Revenue 95,963 91,091 4,872 F 347, , ,062 4,546 F 1,055,200 Total Operating Revenue 1,142,118 1,121,886 20,232 F 4,542,917 4,236,151 4,410,267 (174,116) U 13,307,532 Federal/State/Local Income: Local Assistance 7,000,000 5,000,000 2,000,000 F 22,250,000 25,000,000 23,000,000 2,000,000 F 48,635,900 State Assistance F F 4,904,300 Federal Assistance - CMAQ 106, , F 639, , , F 427,350 Federal Assistance - JARC/New Free 94, ,425 (13,896) U 428, , ,705 (41,359) U 1,301,110 Total Assistance Income 7,200,715 5,213,794 1,986,921 F 23,317,963 25,820,513 23,861,055 1,959,458 F 55,268,660 Capital Revenue: Capital Operating Reimbursement F F 13,121,924 Capital ADA Reimbursement F F 2,625,000 Total Capital Income F F 15,746,924 Total Revenue $8,342,833 $6,335,680 $2,007,153 F $27,860,880 $30,056,664 $28,271,322 $1,785,342 F $84,323,116 Expenses from Operations: Labor and Fringes $5,130,641 $5,105,246 ($25,395) U $18,920,051 $19,704,198 $19,928,070 $223,872 F $59,692,767 Services 843, ,359 (25,389) U 2,580,540 2,923,578 3,137, ,077 F 9,294,560 Fuel 317, , ,486 F 1,426,641 1,655,780 1,757, ,720 F 5,330,280 Parts, Materials and Supplies 363, , ,865 F 1,999,484 2,003,424 1,896,675 (106,749) U 6,020,556 Utilities 77,423 96,405 18,982 F 380, , ,683 84,946 F 1,267,100 Casualty and Liability 181, ,759 1,690 F 729, , ,818 1,342 F 2,121,800 Other 44,633 42,854 (1,779) U 202, , ,268 56,491 F 596,053 Total Operating Expenses 6,959,019 7,154, ,460 F 26,239,344 27,517,970 28,093, ,699 F 84,323,116 Surplus / (Deficit) before GASB 33 $1,383,814 ($818,799) $2,202,613 F $1,621,536 $2,538,694 $177,653 $2,361,041 F $0 Capital Grant Revenue 1,288,553 1,288,553 F 3,661,735 24,906,496 24,906,496 F 0 Rental income - MCC Amortization 49,167 49,167 F 196, , ,668 F Gain/(Loss) on Sale of Property 0 0 F (25,158) F Depreciation (1,344,527) (1,344,527) U (4,874,594) (5,049,091) (5,049,091) U 0 Surplus / (Deficit) $1,377,007 ($818,799) $2,195,806 F $580,187 $22,593,362 $177,653 $22,415,709 F $0 2

6 Metropolitan Transit Authority Comparative Balance Sheets Month Ended Month Ended October 31, 2018 June 30, 2018 (unaudited) (audited) CURRENT ASSETS Cash and cash equivalents $4,404,261 $5,418,908 Receivables from federal, state and local government 1,639,042 5,742,564 Accounts receivable 1,823,698 1,344,569 Materials and supplies 2,644,112 2,698,423 Prepaid expense and other 873, ,554 Pension Deferred Outflow 5,590,147 5,590,147 Total Current Assets 16,974,748 21,537,165 PROPERTY AND EQUIPMENT Land 14,733,025 14,733,025 Building, shelter and benches 96,532,642 96,496,105 Revenue equipment and parts 152,792, ,380,665 Office furniture and equipment 4,980,031 4,731,572 Other 23,848,117 14,591, ,886, ,933,042 Less: Accumulated Depreciation (134,575,791) (129,492,314) Total Property and equipment, net 158,310, ,440,728 OTHER ASSETS Cash and investments for self-insurance and other 6,448,302 9,038,229 TOTAL ASSETS $181,733,526 $162,016,122 LIABILITIES AND NET ASSETS CURRENT LIABILITIES Accounts payable $6,546,290 $6,398,421 Accrued expenses 7,476,463 7,587,493 Deferred revenue 47,878 46,142 Note Payable 0 4,000,000 Total Current Liabilities 14,070,631 18,032,056 NON-CURRENT LIABILITIES Deferred Revenue 8,360,793 8,557,461 Refundable Grants 1,282,136 1,131,959 Net Pension Liability 15,207,913 15,207,913 Pension Deferred Inflow 1,306,801 1,306,801 Net other postemployment benefits obligations 62,749,296 62,759,296 NET ASSETS Invested in capital assets 149,949, ,883,267 Reserve for capital purchases 4,470,707 7,406,806 Unrestricted (98,257,796) (74,231,058) Current Year Surplus / (deficit) 22,593,362 2,961,621 Total Net Assets 78,755,956 55,020,636 TOTAL LIABILITIES AND NET ASSETS $181,733,526 $162,016,122 Current > 30 days > 60 Days > 90 days Total Accounts Receivable $898,140 $223,188 $381,706 $320,664 $1,823, % 12.2% 20.9% 17.6% 100.0% Accounts Payable $1,977,637 $4,548,967 $35,713 ($16,027) $6,546, % 69.5% 0.5% -0.2% 100.0% 3

7 NASHVILLE METROPOLITAN TRANSIT AUTHORITY OF NASHVILLE AND DAVIDSON COUNTY, TENNESSEE COMMITTEE DISCUSSION ITEM Item Number: OF-D Meeting Date: 12/13/18 Item Title: MONTHLY OPERATING STATISTICS BACKGROUND Attached are monthly operating statistics through October CURRENT STATUS Chief Operating Officer India Birdsong will review the statistics at the committee meeting. Approved: Chief Operating Officer December 7, 2018 Date 4

8 WeGo Operations Dashboard Report October 2018 October 2017 Pct. Change Average Monthly Goals Ridership Total Passengers Bus 862, , % AccessRide (MTA) 28,684 28, % AccessRide (Overflow/Taxi) 9,467 12, % Access-on-Demand 2,796 N/A N/A AccessRide Total 40,947 40, % Total 903, , % 830,000 Passengers per Revenue Hour Bus % 18 AccessRide % 2.1 Total Scheduled Revenue Hours 60,428 59, % Total Cost Per Scheduled Revenue Hour of Service $ $ % Safety Miles Between Total Accidents 36,538 26, % 36,000 Miles Between Preventable Accidents 255, , % 300,000 Preventable Accidents % Non-Preventable Accidents % Internal Accidents % External Accidents % Service Quality Bus Trip Completion Percentage 99.4% 99.5% -0.1% 99.5% AccessRide Trip Denials % 0 Miles Between Road Calls 3,707 2, % 3,200 On-Time Performance Bus 82.8% 84.2% -1.4% 85.0% AccessRide (MTA) 81.6% 83.8% -2.2% 89.0% AccessRide (Overflow/Taxi) 76.2% 81.3% -5.1% 89.0% AccessRide Total 80.3% 83.0% -2.7% 89.0% Customer Care Passengers Carried Per Complaint Bus 6,031 4, % 8,000 AccessRide % 700 Total Calls Received 29,935 30, % Percent of Calls Answered 93.2% 92.8% 0.3% 95.0% 5

9 WeGo Operations Dashboard Report FY 2019 October FY 2018 October Pct. Change Average Monthly Goals Ridership Total Passengers Bus 3,254,839 3,188, % AccessRide (MTA) 107, , % AccessRide (Overflow/Taxi) 38,593 48, % Access-on-Demand 9,047 N/A N/A AccessRide Total 154, , % Total 3,409,798 3,343, % 3,320,000 Passengers per Revenue Hour Bus % 18 AccessRide % 2.1 Total Scheduled Revenue Hours 232, , % Total Cost Per Scheduled Revenue Hour of Service $ $ % Safety Miles Between Total Accidents 39,021 38, % 36,000 Miles Between Preventable Accidents 975, , % 300,000 Preventable Accidents % Non-Preventable Accidents % Internal Accidents % External Accidents % Service Quality Bus Trip Completion Percentage 99.0% 99.5% -0.5% 99.5% AccessRide Trip Denials % 0 Miles Between Road Calls 3,100 2, % 3,200 On-Time Performance Bus 82.7% 84.5% -1.8% 85.0% AccessRide (MTA) 83.3% 85.4% -2.1% 89.0% AccessRide (Overflow/Taxi) 77.5% 83.9% -6.5% 89.0% AccessRide Total 81.7% 84.9% -3.2% 89.0% Customer Care Passengers Carried Per Complaint Bus 5,907 5, % 8,000 AccessRide % 700 Total Calls Received 112, , % Percent of Calls Answered 93.0% 92.1% 0.9% 95.0% 6

10 MTA Operations Dashboard Glossary Metric Ridership Total Passengers Bus AccessRide (MTA) AccessRide (Overflow/Taxi) Access-on-Demand AccessRide Total Definitons Total fixed route passenger boardings on all MTA operated services Total paratransit passenger boardings on MTA vehicles Total paratransit passenger boardings on 3rd party service providers Total paratransit passenger boardings on Access-on-Demand service by 3rd party providers Total paratransit boardings (MTA vehicles & 3rd party service providers, includes Access-on Demand Ridership) Passengers per Revenue Hour Bus AccessRide Total Scheduled Revenue Hours Total fixed route passenger boardings divided by total scheduled fixed route revenue vehicle hours. Total paratransit boardings on MTA vans divided by total scheduled paratransit revenue vehicle hours. Total fixed route and paratransit scheduled revenue vehicle hours. Note: Revenue vehicle hours are total vehicle in-service hours excluding vehicle travel from the garage to the first timepoint (or pickup for paratransit) and from the last timepoint (or pickup) to the garage. Total Cost Per Scheduled Revenue Hour of Service Total fully allocated cost to deliver service divided by the total scheduled revenue hours. Safety Miles Between Total Accidents Miles Between Preventable Accidents Preventable Accidents Non-Preventable Accidents Internal Accidents External Accidents Total number of miles travelled by all MTA revenue vehicles (fixed route and paratransit) divided by the total number of accidents. Total number of miles travelled by all MTA revenue vehicles (fixed route and paratransit) divided by the total number of preventable accidents. A motor vehicle collision, in which the Operator did not do everything reasonable to avoid a collision, committed an error or failed to react to the errors of others. A motor vehicle collision in which the Operator committed no driving error and reacted reasonably to the errors of others. A motor vehicle collision that occurs on Nestor or Myatt yard. A motor vehicle collision that occurs outside of Nestor or Myatt yard. 7

11 MTA Operations Dashboard Glossary Metric Service Quality Bus Trip Completion Percentage Definitons Percentage of one-way fixed route revenue trips completed versus scheduled. AccessRide Trip Denials Miles Between Road Calls Total number of paratransit trips that cannot be scheduled within one hour before or after the customer's requested pick-up time. Any mechanical failure, excluding farebox and accidents. Bus and AccessRide metrics will be reported separately. Bus On-Time Performance Access Ride (MTA & Taxi/Overflow) Percentage of total scheduled fixed route timepoint departures occurring between 59 seconds early and 5 minutes 59 seconds late. Percentage of total trips where vehicle arrives no later than 59 seconds outside of the scheduled pickup window. Customer Care Passengers Carried Per Complaint Bus AccessRide Total fixed route passengers divided by total fixed route customer complaints. Total paratransit (MTA and 3rd Party service providers) passengers divided by total paratransit customer complaints. Total Calls Received Percent of Calls Answered Percentage of calls received that were answered. Unanswered calls are calls that are lost for any reason once in the customer call phone queue. 8

12 NASHILLE METROPOLITAN TRANSIT AUTHORITY OF NASHVILLE AND DAVIDSON COUNTY, TENNESSEE COMMITTEE ACTION ITEM Item Number: OF-A Meeting Date: 12/13/18 Item Title: WEGO CENTRAL PARKING GARAGE PROPERTY LEASE BACKGROUND Providing a safe, clean and well-managed environment is imperative to WeGo Public Transit s ability to provide quality transportation services to the public. As our city grows, we must also consider the maintenance and quality of the surrounding environment, including all parking facilities and transfer stations connected to WeGo property and services. Our current contract with Premier Parking for parking garage daily management and maintenance is set to expire on December 31, The lessee for this property is charged with handling the daily operations, revenue collection, securement and cleanliness of garage elevators and lobbies, stairwells, and parking bays within the WeGo Central facility. To ensure effective continuity of oversight for this property, a solicitation in the form of a request for proposal (RFP) for a property lease of the parking garage was issued on October 12, RFP materials were sent to five interested firms as well as being advertised on the Transit Talent and company websites. Two proposals were received as responsive and responsible from SP Plus Municipal Services and Premier Parking. Evaluation of the proposals was conducted by WeGo Facilities Maintenance, Operations, and Finance departments, respectively. As a group, the evaluation team rated the proposals using criteria including proposed revenue, proposed business operation and business responsibility, proposer s financial stability, and the proposer s understanding of the RFP. The following were the monthly revenues proposed: Premier SP Plus Year 1 $91,667 $77,084 Year 2 $93,500 $78,625 Year 3 $95,370 $80,198 Year 4 $97,277 $81,801 Year 5 $99,223 $83,437 Based upon the criteria and the revenues proposed, the evaluation team selected Premier Parking to be awarded the contract. This would represent a 24.7% increase, or approximately $218,000, over the revenues from the final year of the expiring contract with a 2% annual increases in years two through five. STAFF RECOMMENDATION We request the Committee recommend the Board approve and award a lease for the parking garage property at WeGo Central to Premier Parking effective January 1, The contract would be for an initial term of three years with two additional one-year options. The proposed contract will be written for a monthly lease amount of $91,667 (year 1), $93,500 (year 2), and $95,370 (year 3), and two oneyear options for a monthly rate of $97,277 (year 4) and $99,223 (year 5). Approved: Chief Financial Officer December 7, 2018 Date 9

13 NASHILLE METROPOLITAN TRANSIT AUTHORITY OF NASHVILLE AND DAVIDSON COUNTY, TENNESSEE COMMITTEE ACTION ITEM Item Number: OF-A Meeting Date: 12/13/18 Item Title: FISCAL YEAR 2018 ANNUAL AUDIT REPORT BACKGROUND The enclosed report is the Comprehensive Annual Financial Report for the fiscal year ended June 30, The following page is a copy of the audited Statement of Operations for FY2018 in the format normally presented to the Committee. We are pleased to report that the Nashville Metropolitan Transit Authority (Nashville MTA) once again received a clean opinion on the report from our auditors and that no material internal control weaknesses were encountered during the audit. STAFF RECOMMENDATION The Nashville MTA s outside accountants from Crosslin will review the Annual Report and their required communications at the committee meeting. We are requesting that the Operations & Finance Committee recommend to the Board the acceptance of the Comprehensive Annual Financial Report for the fiscal year ended June 30, Approved: Chief Financial Officer December 7, 2018 Date 10

14 Metropolitan Transit Authority Statement of Operations Compared to Budget For the Period Ending June 30, 2018 AUDITED Actual Month Month End F / Prior Year Actual Budget Y-T-D F / Original Month Budget Variance U Y-T-D Y-T-D Y-T-D Variance U Budget Revenue form Operations: Passenger Fares $562,387 $583,000 ($20,613) U $9,248,918 $7,199,132 $7,217,000 ($17,868) U $7,217,000 Access Ride 75,006 70,500 4,506 F 858, , ,900 (12,444) U 864,900 Contract Revenues 214, ,820 2,037 F 2,497,151 2,565,142 2,553,800 11,342 F 2,553,800 Advertising 77,075 98,000 (20,925) U 1,007,651 1,066,245 1,100,000 (33,755) U 1,100,000 Other Non-Trans Revenue 167,979 89,680 78,299 F 1,116,825 1,145,314 1,062,450 82,864 F 1,062,450 Total Operating Revenue 1,097,304 1,054,000 43,304 F 14,728,704 12,828,289 12,798,150 30,139 F 12,798,150 Federal/State/Local Income: Local Assistance F 42,013,600 48,635,900 48,635,900 0 F 48,635,900 State Assistance F 4,653,700 4,723,500 4,723,500 0 F 4,723,500 Federal Assistance - CMAQ 158, , F 1,911,089 1,919,812 1,900,000 19,812 F 1,900,000 Federal Assistance - JARC/New Free 108, , F 704,653 1,310,667 1,291,320 19,347 F 1,291,320 Total Assistance Income 266, , F 49,283,042 56,589,879 56,550,720 39,159 F 56,550,720 Capital Revenue: Capital Operating Reimbursement 1,937,660 1,812, ,000 F 9,300,000 9,688,300 9,563, ,000 F 9,563,300 Capital ADA Reimbursement 525, ,000 (125,000) U 2,500,000 2,625,000 2,750,000 (125,000) U 2,750,000 Total Capital Income 2,462,660 2,462,660 0 F 11,800,000 12,313,300 12,313,300 0 F 12,313,300 Total Revenue $3,826,913 $3,782,770 $44,143 F $75,811,746 $81,731,468 $81,662,170 $69,298 F $81,662,170 Expenses from Operations: Labor and Fringes $3,994,456 $4,864,873 $870,417 F $54,832,543 $56,913,356 $57,850,140 $936,784 F $57,850,140 Services 1,111, ,580 (441,739) U 8,017,345 8,829,759 7,970,200 (859,559) U 7,970,200 Fuel 390, ,011 61,770 F 3,464,155 4,427,080 5,142, ,705 F 5,142,785 Parts, Materials and Supplies 593, ,917 (61,524) U 5,791,091 6,544,101 6,357,220 (186,881) U 6,357,220 Utilities 85, ,655 31,202 F 1,220,806 1,253,906 1,430, ,944 F 1,430,850 Casualty and Liability 176, , F 1,939,283 2,160,628 2,121,800 (38,828) U 2,121,800 Other 121,651 53,958 (67,693) U 542, , , ,024 F 789,175 Total Operating Expenses 6,472,849 6,865, ,961 F 75,808,127 80,780,981 81,662, ,189 F 81,662,170 Surplus / (Deficit) before GASB 33 ($2,645,936) ($3,083,040) $437,104 F $3,619 $950,487 $0 $950,487 F $0 Capital Grant Revenue 4,675,963 4,675,963 F 7,258,833 18,648,773 18,648,773 F 0 Rental income - MCC Amortization 49,167 49,167 F 590, , ,004 F Gain/(Loss) on Sale of Property F 6,517,430 (24,180) (24,180) U Comp Op Analysis & Traincaster 0 0 F (361,462) (87,244) (87,244) U GASB OPEB Expense (4,007,119) (4,007,119) U (5,761,741) (4,007,119) (4,007,119) U GASB 68 Pension Disclosure (897,283) (897,283) U (1,095,645) (897,283) (897,283) U Depreciation (1,903,690) (1,903,690) U (16,176,419) (15,720,801) (15,720,801) U 0 Surplus / (Deficit) ($4,728,427) ($3,083,040) ($1,645,387) U ($9,025,381) ($547,363) $0 ($547,363) U $0 11

15 NASHVILLE METROPOLTAN TRANSIT AUTHORITY OF NASHVILLE AND DAVIDSON COUNTY, TENNESSEE COMMITTEE ACTION ITEM Item Number: OF-A Meeting Date: 12/13/18 Item Title: COMPUTER EQUIPMENT, STORAGE, SOFTWARE, AND RELATED SERVICES BACKGROUND The State of Tennessee has three statewide Information Technology-related (IT) contracts available for use by local agencies for the purchase of computer workstations (PCs), laptops, servers, software, warranty costs, licensing, and other computer hardware-related capital support costs. The contract period for these contracts ends on March 31, The Nashville Metropolitan Transit Authority (Nashville MTA) has prioritized capital projects in the annual capital plan to ensure funding of State of Good Repair needs and high-priority, on-going projects. Per the adopted capital plan, State of Good Repair items will need to be funded at approximately $725,000 for FY2019 and FY2020 to include continuous replacement of aging workstations and servers as they reach end of life as well as expansion of server infrastructure to support increased processing speed and redundancies for operations-critical software applications. Also per the capital plan, Nashville MTA has identified the need for significant IT purchases associated with approved, in-process high-priority capital projects including the Next Generation Fare Collection System ($800,000 with $100,000 contingency) and the Tiger V Murfreesboro Road Transit Signal Priority ($75,000). These needs are eligible purchases under the statewide IT-contracts. Staff proposes using federal formula funds such as 5307 dollars to support the IT-related State of Good Repair capital plan line item in the FY2019 and FY2020 capital plans. Funds for the Next Generation Fare Collection and Tiger V projects were previously approved by the Board using allocated Local, State, and Federal sources. STAFF RECOMMENDATION We request the Operations & Finance Committee recommend to the Board to provide the Chief Executive Officer the authority to utilize State contracts to purchase computer equipment, storage, software, and related services in the not-to-exceed amount of $1.7 million through March 31, 2020 as described above. Approved: Chief Administrative Officer December 7, 2018 Date 12

16 NASHVILLE METROPOLITAN TRANSIT AUTHORITY OF NASHVILLE AND DAVIDSON COUNTY, TENNESSEE COMMITTEE ACTION ITEM Item Number: OF-A Meeting Date: 12/13/18 Item Title: PROCUREMENT POLICY UPDATE BACKGROUND As a recipient of federal funding through the Federal Transit Administration (FTA), the Nashville Metropolitan Transit Authority (Nashville MTA) policies and practices are subject to Triennial Review Audit every three years to encourage and facilitate improved agency operations, promote the use of best practices, and assess the agency s compliance with all federal requirements. In preparation for the 2019 Triennial Review Audit, the Nashville MTA hired The Coleman Group, Inc. of Greenbelt, Maryland to provide a preliminary review of the current procurement policies and procedures. Subsequent to the preliminary review, The Coleman Group recommended revisions to our current Written Standards of Conduct. Specific recommendations included adding provisions to address: limitations on contact by a potential vendor during an active solicitation; rules around vendor gifts or contingent fees; negotiations for future employment with a vendor; and organizational conflicts of interest. Additionally, staff proposed revisions to Appendix P-Affidavit to reflect acknowledgement and confirmation that neither the solicitation evaluator nor a member of the evaluator s family has any financial gain including employment with the companies submitting proposals. As result of the above recommendations, the Procurement Department proposes the attached policy revisions to its Procurement Policy and Procedure Manual. STAFF RECOMMENDATION We request the New Initiatives & Community Engagement Committee recommend to the Board to adopt the proposed policy revisions (attached). Approved: Chief Administrative Officer 13 December 7, 2018 Date

17 Procurement Policy and Procedure Manual Amendment Written Standards of Conduct P The Procurement and Project Administrators (PPAs), Purchasing Supervisor, Purchasing Agent and the Procurement Manager are required to conduct procurements in accordance with applicable local, state, and federal requirements. Nashville MTA procurement policy will be conducted using the highest standard of ethics while utilizing best business practices. A Procurement History checklist (see Appendix A) has been implemented to provide built in quality control to substantiate and validate the quality of all procurement and contracting actions at Nashville MTA. This checklist is designed to substantiate how each procurement or contracting process is conducted, and to ensure that each file contains appropriate documentation to support the process. The Procurement history checklist establishes procurement and contracting process standards, ensures consistency of decisions, actions, and provides general direction to the Procurement Department. The checklist also provides negotiating steps and complete activities when the procurement and contracting process is consistent with Nashville MTA s requirements. Not all items of the Procurement History checklist is required for all procurement actions. Any deviation that significantly alters the Procurement History checklist requirements shall be approved in advance by the Procurement Manager. This Written Standard of Conduct is applicable to all Employees, Vendors and Contractors, as that term is defined below, involved in the procurement process of the Nashville MTA and its affiliated and subsidiary agencies, for the award or performance of contracts for goods and services procurements. A. Limitations On Contact With The Agency 1. Each procurement solicitation issued by the agency will identify the Agency s Point of Contact for that solicitation. 2. Once the Point of Contact is established, neither the Vendor nor any person or entity acting on the Vendor s behalf, including, without limitation, those providing compensated or uncompensated lobbying, advocacy, consulting or other service, may make a Prohibited Contact, provided that such Contact will not be prohibited if specifically authorized by the Point of Contact in furtherance of the procurement process. 3. Any written communication, including, without limitation, letters, faxes and s, directed to anyone other than the Point of Contact, must be forwarded to the Point of Contact to determine the appropriate response. 4. In addition to the requirements of Tennessee State Laws, each Vendor shall direct every individual or entity retained, employed, designated by or acting for or on behalf of the Vendor to attempt to influence the procurement process with the agency, to limit their contacts with the agency concerning specific procurement actions to the agency s designated Point Of Contact for that procurement. B. Gifts Or Contingent Fees 1. No Vendor may offer or give any Gift, directly or indirectly, to an employee. Similarly, no Vendor may offer or give any Gift, directly or indirectly, to any member of an employee s Immediate Family where such Gift is made because of the Vendor s relationship with the employee. 14

18 2. Notwithstanding the foregoing, if a Vendor has a family or personal relationship with the employee, a gift that is unconnected with the employee s duties at the Authority is not necessarily prohibited. In determining whether the giving of an item was motivated by personal rather than business concerns, the following factors are considered: (a) the history of the relationship between the donor and the recipient; and (b) whether the item was purchased by the donor. The giving of an item shall not be considered to be motivated by a family or personal relationship if the donor seeks to charge or deduct the value of the item as a business expense or seeks reimbursement from a client. However, regardless of the family or personal relationship between a Vendor and an employee, a Gift is strictly forbidden where it is being given under circumstances where it can reasonably be inferred that it was intended to influence the employee in the performance of his or her official duties. 3. The Vendor will not employ or retain any individual or entity for the purpose of soliciting or securing an Authority contract upon any agreement or understanding for a commission, percentage, brokerage, or fee that is contingent or dependent upon the outcome of the procurement. C. Negotiations For Future Employment Employees of the Authority are subject to the restrictions set forth below in connection with negotiations for future employment with Vendors. It is expected that Vendors will approach any such solicitation or negotiation with knowledge and understanding of these restrictions and will conduct themselves accordingly. 1. An employee (a) who is solicited by a Vendor that is involved in any matter in which the employee is directly concerned or personally participating on behalf of the Authority and who desires to pursue discussions regarding future employment with the Vendor, or (b) who decides to solicit employment from such a Vendor shall be deemed to have a conflict of interest. 2. This conflict may be overcome only if the employee s manager reassigns the employee, in writing, to a position or job in which the employee will have no contact with the Vendor. The procedure for seeking reassignment is as follows: First, the employee is required to notify his or her immediate manager of the solicitation in writing. Second, the employee s manager is required to advise his or her superiors of the request, up to and including the Department head, and must further indicate whether the manager intends to reassign the employee or refuse reassignment. A manager should refuse to reassign an employee when the manager determines that reassignment would be either impractical or inappropriate under the circumstances. Third, the manager must obtain the Department head s approval of the decision to reassign the employee or refuse reassignment. Finally, the manager must notify the employee of his or her decision. If reassignment is refused, the employee may not pursue the Vendor s solicitation. D. Organizational conflicts of interest 1. Organizational conflicts of interest can cause two distinct problems: bias and unfair competitive advantage. An organizational conflict of interest exists where other activities, relationships, or Contracts of a Contractor inhibit, affect or prevent the Contractor from rendering impartial assistance or advice to Nashville MTA; a Contractor s objectivity in performing the Contract work is or might be otherwise impaired (e.g. a Contractor assisting with a design might have a financial interest in a product or system that could be utilized in implementing that design); or a Contractor has an unfair competitive advantage which might be gained through its involvement in writing, or reviewing the solicitation and Contract documents, including the scope or specification except as part of a general industry review. 15

19 2. There are a variety of ways in which conflicts of interest can be prevented, or mitigated, one of the most important being disclosure. Contracts should include the organizational conflict of interest clause, to require that offeror s disclose when they believe there may be a conflict. This allows Nashville MTA the opportunity to make the determination and take the necessary action to avoid the conflict. Also, conflicts of interest can be avoided by thoroughly researching potential vendors, employees and Contractors. Any connections should be investigated so as to prevent conflict. Nashville MTA conflict of interest policy requires that employees refrain from engaging in any activity, practice or act which conflicts with, or appears in conflict with the interest of Nashville MTA, its customers, or vendors. Compliance with this policy significantly reduces the chance of a conflict of interest. Examples conflicts of interest include, but are not limited to: a) The employee being also employed by a bidder, offeror or Contractor involved in the procurement transaction; b) The employee, or any member of the employee s immediate family holds a position with a bidder, offeror or Contractor such as an officer, director, trustee, partner or the like, or is employed in a capacity involving personal and substantial participation in the procurement transaction, or owns or controls an interest of more than five percent (5%); c) The employee, or any member of the employee s immediate family has a financial interest arising from the procurement transaction; or d) The employee, or any member of the employee s immediate family is negotiating, or has an arrangement concerning, prospective employment with a bidder, offeror or Contractor. 3. Once a conflict of interest has already occurred, it is still possible to avoid the consequences related to it. By implementing mitigation methods, the consequences associated with conflicts of interest may be avoided. Examples of ways to mitigate conflicts of interest include, but are not limited to: a) Removal of Nashville MTA s employee from the position causing the conflict. b) Recusal, allowing the employee facing the conflict to abstain from participating in the procurement action causing the conflict. c) A third party becoming involved to make the necessary decision impartially. Organizational and Contractor Conflict of Interest (COI) P (A required Form 18 shall be signed and executed by the contractor.) (a) Definitions. (1) Contractor includes the Contractor and its employees, affiliates, consultants, and subcontractors. (2) "Impaired objectivity" includes without limitation the following situations that would cause a reasonable person with knowledge of the relevant facts to question a person's objectivity: (A) Financial interests or reasonably foreseeable financial interests in or in connection with products, property, or services that may be currently utilized or utilized in the future by a person, organization, or institution in the course of implementing any project administered by the agency; 16

20 (B) Significant connections or access to project details, information, or methodologies that might require or encourage the use of specific products, property or services; or (C) Significant identification with philosophical viewpoints or other non-public information that might require or encourage the use of specific products, property or services. (3)(A) Organizational Conflict of Interest means that: (i) Because of other activities or relationships with other persons, the Contractor is unable or potentially unable to render impartial assistance or advice to the State; (ii) The Contractor s objectivity in performing the contract work is or might be otherwise viewed as compromised. The Contractor has or is perceived as having impaired objectivity; or (iii) The Contractor has an unfair competitive advantage. (3)(B) An organizational conflict of interest may result when: (i) Activities or relationships create an actual, apparent, or potential conflict of interest related to the performance of the contract; or (ii) The nature of the contract creates an actual, apparent, or potential conflict of interest with respect to the Contractor in relation to future contracts with the State. (b)(1) The contractor, subcontractor, employee or consultant, shall certify that, to the best of their knowledge and belief, there are no relevant facts or circumstances which could give rise to an organizational or personal conflict of interest, be it actual, apparent, or potential, for the organization or any of its staff, AND that the contractor, subcontractor, employee or consultant has disclosed all relevant information if an actual, apparent, or potential conflict of interest appears to exist to a reasonable person with knowledge of the relevant facts or if such a person would question the impartiality of the contractor, subcontractor, employee or consultant. Actual, apparent, or potential conflicts of interest may arise in the following situations: (A) Unequal access to information a potential contractor, subcontractor, employee or consultant has access to non-public information, including without limitation, data, plans, policies, and other knowledge, through its performance on a government contract; (B) Biased ground rules a potential contractor, subcontractor, employee or consultant has worked, in one government contract or project, on the basic structure or ground rules of another government contract or future government contract. For example, the Contractor shall not use information gained from this contract to counsel current or future beneficiaries on the provision of services provided now or in the future by the Agency; or (C) Impaired objectivity a potential contractor, subcontractor, employee or consultant, or member of their immediate family (spouse, parent, or child) has financial or other interests that would impair, or give the appearance of impairing, impartial judgment in the evaluation of Nashville projects, in offering advice or recommendations to the agency, in performing their current or future contractual obligations, or in providing technical assistance or other services to Nashville projects as part of its contractual responsibility. (b)(2) Offerors shall disclose as described above regarding any actual, apparent, or potential conflict of interest regardless of their own opinion that such an actual, apparent, or potential conflict of interest would not result in impaired objectivity. (b)(3) If an actual, apparent, or potential conflict of interest is disclosed, the Agency will take appropriate actions to eliminate or address the actual, apparent, or potential conflict, including without limitation mitigating or neutralizing the conflict or requiring the offeror to provide a satisfactory mitigation plan to the Agency identifying specific methods which will be imposed by the offeror to eliminate, to the extent possible, the conflict of interest. The Agency may restrict or modify the work to be performed by the offeror to avoid or 17

21 reduce the actual, apparent, or potential conflict of interest. In this clause, the term potential conflict means reasonably foreseeable conflict of interest. (b)(4) If a Contractor anticipates working on more than one contract with the Agency currently or in the future that is related in any way to this contract, the mitigation plan developed by the Contractor shall provide, at a minimum, assurances that no staff, communication, or data will be shared within the organization regarding this contract and any future contract that relates to the scope of services provided under this contract. Information gained by the Contractor from this contract shall not be used to benefit the Contractor in gaining competitive advantage in future contracts with the State. (c) The contractor, subcontractor, employee or consultant agrees that if impaired objectivity, or an actual, apparent, or potential conflict of interest is discovered after the award is made, it will make a full disclosure in writing to the Contracting Officer. This disclosure shall include a mitigation plan, which shall include a description of actions that the Contractor has taken or proposes to take, after consultation with the Contracting Officer, to avoid, mitigate, or neutralize the actual, apparent, or potential conflict of interest. (d)(1) Remedies - The State may terminate this contract for convenience, in whole or in part, if it determines that termination is necessary to avoid an actual, apparent, or potential conflict of interest or if the Contractor fails to provide a mitigation plan for an actual, apparent, or potential conflict of interest that is satisfactory to the Agency. If the Contractor was aware of an actual, apparent, or potential conflict of interest prior to award or discovered an actual, apparent, or potential conflict of interest after award and did not disclose or misrepresented relevant information to the Contracting Officer, the State may terminate the contract for default, or pursue such other remedies as may be permitted by law or this contract. Further remedies include suspension or debarment from contracting with the State. The Contractor may also be required to reimburse the Agency for costs the Agency incurs arising from activities related to conflicts of interest. (d)(2) If the Agency has accepted a mitigation plan from the Contractor to minimize any actual, apparent, or potential conflict of interest and there is a violation of the mitigation plan, the Contractor shall be liable to the Agency for a set amount determined by both parties in writing for the first violation. Any subsequent violations to the mitigation plan shall be twice the amount of the immediately preceding violation(s). (e) In cases where remedies short of termination have been applied, the contractor, subcontractor, employee or consultant agrees to eliminate the organizational conflict of interest, or mitigate it to the satisfaction of the Contracting Officer. This may include creating or revising a mitigation plan. (f) The Contractor further agrees to insert in any subcontract or consultant agreement hereunder, provisions which shall conform substantially to the language of this clause, including specific mention of potential remedies and this paragraph (f). 18

22 A. APPENDIX P - Affidavit AFFIDAVIT TITLE: Solicitation: ####### As a participator of this Solicitation-Process, I realize the importance of my undertaking, and am in full agreement of the following: I fully understand the importance of not revealing the contents of the proposal responses or the discussion thereof with any person(s) outside of the Evaluation Panel, and I will not reveal the contents of the proposal responses or the discussion thereof with any person(s) outside of the Evaluation Panel. I understand that the Nashville MTA maintains a No Contact Policy during the selection process, unless the proposer has a current contract with the Nashville MTA. If contact must be made during the evaluation process I will not discuss any part of the evaluation or RF Solicitation-Process with the proposer. I have not been approached by any (elected or appointed) officials of the Metropolitan Government, the Metropolitan Transit Authority Board, staff or other persons requesting information, and/or preferential treatment for any of the Offeror and if such an occasion arises, I will immediately notify the Chief Executive Officer of Nashville MTA. I have not been approached by any of the Offeror requesting information, and/or requesting preferential treatment, and if so, will immediately notify the Chief Executive Officer of Nashville MTA. I have not been approached by any other individual requesting information, and/or requesting preferential treatment for any of the Offeror, and if so, will immediately notify the Chief Executive Officer of Nashville MTA. I will be present for all evaluation meetings. If during the evaluation process I feel that I cannot fulfill my obligation to this RF Solicitation Process, I will notify the Procurement Project Administrator, and request to be excused from the panel. I acknowledge and confirm that neither I nor any member(s) of my family shall have any financial gain including employment with the companies listed below: Signature Name Printed Date 19

23 New Initiatives & Committee Engagement Meeting 20

24 Nashville MTA Committee Meetings WeGo Central 400 Dr. Martin L. King Jr. Blvd. (formally Charlotte Avenue) Nashville, TN Thursday, December 13, :30 p.m. NICE Committee Janet Miller, Chair Glenn Farner, Member 1. Call to Order 2. Discussion Items Music City Circuit Update NICE-D Pg. 22 Felix Castrodad, Director of Planning & Grants Drive to End Chronic Homelessness Program Overview NICE-D Pg. 23 Judith Tackett, Dir. of Metro Social Services Homeless Division 3. Other Business 4. Adjourn 21

25 NASHVILLE METROPOLTAN TRANSIT AUTHORITY OF NASHVILLE AND DAVIDSON COUNTY, TENNESSEE COMMITTEE DISCUSSION ITEM Item Number: NICE-D Meeting Date: 12/13/18 Item Title: MUSIC CITY CIRCUIT UPDATE BACKGROUND WeGo Public Transit operates the Music City Circuit, a free bus service connecting key destinations around and adjacent to downtown Nashville approximately every 15 minutes. The Blue Circuit (Route 60) serves places such as the Music City Star s Riverfront Station, Bicentennial Mall, and Tennessee State University while the Green Circuit (Route 61) serves destinations like the Country Music Hall of Fame, Music City Center, and the Gulch. The Circuit was first introduced in March 2010 with the goal of serving downtown workers, residents, and visitors. Since its inception, the service has undergone several modifications in part due to the continuous evolving nature of downtown activity, advances in technology for the equipment used to provide the service, and available funding among others. The service remains popular, especially with visitors. Ridership has been steady with some growth over time related to service increases but not to the expected levels considering the relatively high frequency and the fact that the service is free of cost to passengers. The service also faces constant challenges that affect its performance and reliability. The rapid growth Nashville has been experiencing during the last few years has impacted directly the downtown area with an increase of people, vehicles, events, construction, and other factors that have translated into additional road closures, detours and more traffic forcing the service to become very inconsistent at times. CURRENT STATUS Staff will provide a presentation at the meeting with an overview of the Music City Circuit, including history, purpose, impact, performance, challenges, and future opportunities. Approved: Chief Development Officer December 7, 2018 Date 22

26 NASHVILLE METROPOLTAN TRANSIT AUTHORITY OF NASHVILLE AND DAVIDSON COUNTY, TENNESSEE COMMITTEE DISCUSSION ITEM Item Number: NICE-D Meeting Date: 12/13/18 Item Title: DRIVE TO END CHRONIC HOMELESSNESS PROGRAM OVERVIEW BACKGROUND The Drive to End Chronic Homelessness (DECH) was developed as a Nashville Metro Public Improvement Project (PIP) by the Homeless Impact Division (formerly the Metro Homelessness Commission) with the support of the Nashville Metropolitan Transit Authority (Nashville MTA). The purpose of the program is to work towards the elimination of the transportation barrier to permanent housing and higher income by providing chronically homeless individuals bus passes and case worker support. The PIP was approved on July 1, Under this program, the Nashville MTA provided the Homeless Impact Division up to 500 local bus passes to distribute to individuals age 18 or older who experience chronic homelessness, to link them to services and remove transportation barriers to housing. The program also included sensitivity training for bus operators and select police officers on how to interact with individuals experiencing homelessness. To date, nearly 500 individuals have received bus passes. Those receiving passes were found to have been homeless at least 12 months in the past three years, including those having served in the military (11%) and in many cases experiencing some form of disability. Nearly 40% of those receiving bus passes have been permanently housed between October 2017 and September More than half (52%) were housed within three months of joining the program. CURRENT STATUS Judith Tackett, Director of the Metro Social Services Homeless Impact Division, will present the program s year one progress report. Approved: Chief Development Officer December 7, 2018 Date 23