Transit Agency Financial Status and Operations

1. Transit Agency StatusFY 2011-12 • Current Financial Position: • FR=$48,961 surplus as of 8/31/11 • SR= $30,446 surplus as of 8/31/11 • Current Operations= $233,000/month FR $140,000/month SR Based upon JUL/AUG BUDVAR 11

2. Service Statistics/Trends: Several methods are used- • 1) Board packet AUG, 2011, • 2)Monthly Stats xls since 03/04, and • 3) Executive Directors Report (10/11 YTD & 11/12 YTD) • 4) Committee Reviews (Finance, Operations, HR, Compliance, Marketing) • Funding Statistics/Trends: Major Funding by Program • 5311/ 1513/ Local/ Lottery/ PWD/ MATP

3. Operating Comparison FY10/11 + 4 • PennDOT Operating Comparison

4. Other Information/Assumptions • Capital Status Review- 1. Building Expansion Phase II- Completed 6/30/11 2. Roof Replacement/Refurb.- Completed 6/30/11 3. Facility Enhancement/Furnishings- $11,026 bal. 4. Narrow Band Radio Upgrade- $145,000 12/31/11 5. Shared Ride Replacement Buses- 12/31/11 6. Three High Top Vans- 12/31/11 7. Vehicle Refurbishment- 3/31/12 8. LDP, Feasibility Plan 9. Feasibility Study

5. Managers Meetings are held twice a month for the purpose of keeping all management level employees informed on a variety of issues. An example of the most recent meeting notes shows how communication is shared. • Managers Meetings have been held the 2nd Thursday and 4th Wednesday of each month since 2002.

6. Current Financial Position: • Reserves (Per Audit FY2010/2011):

7. Current Financial Position: • Level of Short-Term Debt/Loans—Identify each line of credit (excludes long-term bond financing)

8. Current Financial Position: • Accounts Payable – Past due 90 days and over • Accounts Receivable – Past due 90 days and over

9. Current Operations: • Staffing Level: 67.5FTE as of September, 2011 • IT Consultant (12 hrs/week= $1,600/month contract runs through 12/31/11 with a one year extension option) • Fuel: Reimer Brothers • 2/15/10- 2/14/11 with on year option to 2/13/12 • +.0390 per gallon Unleaded or Diesel (Macungie Tank-Wagon $2.0107) • Unleaded, 60,000 gallons/yr: $3.1402 as of 7/21/11 • Diesel, 150,000 gallons/yr: $3.2478 as of 7/22/11 • Fares: SR Fare increase 11% May 1, 2011 • FR waiting to be tied into Farebox Upgrade Project- *Rich

10. Contract Provisions: • Highlights from the most recent ATU negotiations • Healthcare: Geisinger HRA $ • Pension: AIG Valic Three Year Trend: • (7%) FY08/09= $121,195 • (7%) FY09/10= $153,974 • (5%) FY10/11= $ 87,591* Contract Negotiated item

11. Other major factors producing cost increases above inflation: Upgrade to geothermal technology- currently uncertain of it’s ROI, electric and heating oil • Cost Savings Initiatives: FR= • 1) No Sundays eff. Sep, 2010, • 2) Orange Route 6:30pm last drop-off; saving approximately 2 hrs/day Mon-Fri, • 3) Discontinued Sanofi service, 4) Removed Stroud Mall driver ‘deadhead’ time by interlining Blue/Red route services/ SR= Fare Increase May 1, 2011, 2) coordination with AAA regarding absorption of Senior co-pay increase so no increase was passed on to the senior, 3) Streamlining Loop Service days (ie: reducing 3 days to 2)

12. Cost containment Highlights: 1) Overtime based on 24 hours/40 hours worked 2) 7% Pension contribution reduced to 5% 3) Medical Opt-Out reduced from $290/month to $250/month 4) Probationary period extended from 60 working days to 90 working days 5) New Hire Wage Progression extended from 36 months to 44 months/beginning at 75% of rate not 85% 6 ) Worker’s Compensation- reduction since departure from SAFTI & 5% rebate from state due to in-house Safety Program (Monthly Committee/Experienced Modification Rate reduced from 1.88 in 2002 to .663 in 2011)

13. Staffing Level/Org Chart • Provide a current organization chart with vacant and new positions. Include a justification for new planned positions. (We are looking to replace* [Experience Works- Rich] a PM Admin. position in Dispatch who may also perform some Scheduling duties while our Scheduler is out on maternity leave in Feb, 2012).

14. Contract Provisions • Term of current union contract 7/1/2010- 6/30/2013

15. Important Contract Provisions • Use of part-time employees Expected to work (3) 8 hr days weekly/ common pool/ must have CDL/ 1.9% bonus quarterly in Shared Ride for drivers who meet this criteria (new this contract year) • *Example: 312 hrs x $11.72= $3,656 x .019 bonus= $70 bonus • Number/percent of “split shift” drivers: 1 (Toby Express) • Overtime : Varied= FR usually 20-40 hrs weekly, SR usually 80-120 depending on driver availability and demand. • Outsourcing (Taxi) MATP and Welfare to Work Programs only FY2010/2011= MATP= $121,000/ WTW= $62,000 • Other: Mileage Reimbursements • FY2010/2011= MATP= $130,000/ WTW= $8,000

16. Healthcare • Describe any proposed changes and the estimated financial impacts. • (We are currently evaluating the HRA for Deductible changes for FY2012/2013)

17. Pension

18. Pension: • Describe any proposed changes and the estimated financial impacts. *See new ATU contract. Reduced 2%. • Provide a status of the degree to which the pension funding is funded. If not fully funded please provide your strategy to fully fund pension. Accrued annually/Employer contribution only based on gross wages for qualifying employees only. Contributions by MCTA are made: 1/31, 4/30, 7/31. MCTA offers a 100% voluntary contribution plan known as a 457. This is offered to all employees who would like to put a little more away for retirement. It affords them the opportunity to have funds taken from their paycheck now, pre-taxed and as allowed by law. MCTA also offers the guidance of a Retirement specialist quarterly for employees who would like to discuss other, non company sponsored programs.

19. Fuel: (Also, see slide #9) • Current Cost per Gallon • Contract rate or market rate? Contract based on market plus mark-up; not a flat rate per gallon. $3.05 diesel/ $3.10 unleaded Projected Cost per Gallon and Basis for Projection • Contract rate or market rate? Contract rate based on Macungie tank wagon date. Terms of contract (if applicable) One year contract with 2nd year option. (Feb, 2012)Net 30. (In preparing our last RFP, we reviewed LANTA, Indigo and Lebanon’s contracts for peer Best Practices)

20. Fixed Route Fares: • Describe fare policy

21. Shared Ride Fares: • Date of Last Fare Increase: May 1, 2011 • Current • Average fare $20.74 (August, 2011) • Sponsorship arrangements: AAA, Salisbury House/MATP [AUG, 2011] (Clubhouse) • Planned Changes • Date of planned increase 2013 tentative (based on regular monitoring) • Estimated average fare $22.81 (estimate based on 9.9% increase of the most recent fare increase). • Sponsorship arrangements: • Describe Fare Policy

22. Other Major Factors Producing Cost Increases Beyond Inflation:

23. Cost Savings Initiatives:

24. Fixed Route Funding (Worksheet for SR/Other Stats)

25. Fixed Route Service Statistics/Trends: • Describe Any Proposed Changes • Describe Any Proposed Changes

26. Shared Ride Funding

27. Shared Ride Statistics/Trends

28. Other Information/Assumptions: • Fixed-Route: LDP, TDP (2010) attached • Shared Ride: MATP update • Jump Drive: NPS Planning Power Point- Rich, Building Project photos, Featherman Wing Dedication

29. Capital Status Review • Fixed-Route/Shared Ride: Decade of Needs for both FR and SR. There will be added projects- particularly as we move further into the LDP and the Township has the Public Sewer connections complete (wash bay refurbishment). MCTA generally seeks 5311 funding at 80% with the remainder using 1517. See attached pdf for detail of balances currently available (Bonds/1517)for future projects. We hope to move the work done to this point forward regarding VanPooling- this will take additional coordination to prepare grant requests/prepare a plan. We have had history in this arena since 2004.