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5. Advisory Board Meeting - April 30, 2018

APPROVED Advisory Board Meeting Minutes

Monday, April 30, 2018

The MetroWest Regional Transit Authority (MWRTA) Advisory Board met on Monday, April 30, 2018 at 11:00 am, at 15 Blandin Avenue, Framingham, MA, at the call of Joseph Nolan, Advisory Board Chair/Wayland.

A roll call of members present was conducted. In attendance were:Ed Burman/Ashland - Clerk, James Errickson/Natick, Debra Galloway/Sudbury, Ellen Gibbs/ Wellesley, Brian Herr/Hopkinton, Jay Marsden/Holliston – Vice Chair, Joseph Nolan/ Wayland– Chair, Cheryl Tully-Stoll/Framingham.

Not in attendance:Nick Milano/Marlborough, Kathleen Bartolini/Southborough, Craig Hughes/Dover, Jack Hunter/Hudson, James Gorman/Sherborn, William Kingkade/Milford,Jean MacQuiddy/Weston, Carole Mullen/ Hopedale, Susan Stocker/Disabled Community

Also in attendance: Ed Carr/Administrator, Eva Willens/Deputy Administrator, John Glynn/CFO, Patrick Moynihan/General Counsel, Carl Damigella/Outreach Coordinator, Daniel Fitch, IT, Joy Glynn/Grants Management, Emily Van Dewoestine/Admin Staff and Sara Scully/Director of Marketing/ Communications & Intermodal Operations.

Kiessling Transit, Inc.:Roger Kiessling/Chief Operating Officer, Chuck Curran/General Manager

Public Attendees:Roberto Ortega of Framingham/Intern with Ed Burman

Chairman Joe Nolan, presiding, declared a quorum was present, and the meeting was called to order at 11:05 am

Minutes of the previous meeting:

A motion was made by Joe Nolan: Approval of minutes from the last Advisory Board Meeting of March 27, 2018. Second.The vote was unanimous.

Public Questions/Comments:A request was made by Mr. Nolan for any public comments from the audience. With no comments being expressed, the meeting continued.

Administrator’s Report:

Ed Carr/Administrator reported that MWRTA Call Center employee, Tyler Terrassi, has won the Caroll Society Award for Outstanding Performance and Contribution in the Workforce, based on achievement and merit.Tyler also works in Senator Spilka’s office and sits on the MetroWest Center of Independent Living (MWCIL) Board.Tyler is the second award winner from MWRTA, the first being Otoniel Orozco (OT) in 2014. The Board requested a letter of Congratulations be sent to Tyler for this award.

Mr Carr reminded the Advisory Board that it approves the overall budget, hires the Administrator, advocates for local communities, and sets the fares. MWRTA had one of the highest fare structures of all the RTA’s when operations began, and has not increased its base cash fares for 10 years. The Board could incrementally increase the fares. Mr Carr stated that on the agenda for the next meeting the Board will be asked to vote on the FY 2019 budget. In that context the Board may also want to consider directing the Administrator to perform a study based on incremental fare increases and to offer recommendations concerning same.

A question was raised by the Board as to whether the increase in fares negatively affect ridership. Mr. Carr stated that generally an increase in fares will have an adverse affect on ridership, but that over time the ridership usually comes back.

Mr Carr went on to point out that State Contract Assistance (SCA) funding is not at a suitable level, and therefore other sustainable sources of income need to be found. CNG is one income source.Another is the Solar PV Canopy Project which should be completed by July 1^st. The income and savings generated as a result of these projects is anticipated to provide MWRTA with more operating funds.For example, it is projected that approximately $90,000.00 in savings on electric costs will be realized from the solar project.

Other sources of income are also being pursued. In FY19 we look to undertake a Class B School Bus License school revenue initiative (we will not be competing with schools in the area). Due to recent legislation, the Authority is now authorized to provide such a service. The RTA will be persistent in pursuing and obtaining an RMV license to move ahead with this initiative.

MWRTA Preliminary Budget:

John Glynn, Consultant/CFO, presented the Preliminary Budget for FY2019.

Reference was made to the preliminary budget schedule contained in the package. Various typos were corrected. The general process utilized in calculating the initial operating budget for FYE 6/30/19 is to close out through March 31, 2018 (9 months), annualize the expenses, then increase each line item by 3%. There are variations on the revenue side, but the expense side is calculated. Two additional line items: Intermodal parking lot operations (goal is to have expenses covered, per arrangement with MBTA), which will be kept separate. $11.1 M is truly $10.8 M, approximately 1.3% actual more than currently annualized.

Q:Is the revenue what we expected?The MWRTA has and continues to make improvements to the Intermodal at the Framingham Commuter Rail Station.Has it been considered to break out the funds to an Enterprise Account? Do we have full time employees specifically assigned to the lot?

A: A budget is provided to the MBTA, they sign off and dictate what MWRTA is allowed to spend. There are full and part time employees assigned to the lot, which are not attributing fully loaded costs. MBTA’s interest in the lot is for reimbursement purposes.If a parking garage, or another lot were added to the equation and revenue sources increased, it may require setting up a separate account or enterprise fund.

Q: Is Local Assessment a 3% increase also?

A:No, its likely be higher, pending SCA and federal funding. RTA’s have been level funded. The Worcester RTA is facing a $1M deficit and a challenge.

Q: What expenses come under operations?

A:Maintenance payroll, Facilities payroll, utilities, Maintenance parts/repairs, cost for Admin supplies.

Q: Is fringe incorporated? What is the overall percentage of fringe off payroll?

A: Pension and life/disability insurance is included under Administration costs. 25% off payroll ~$34,000.00 per week, pension $379,000.00 is due on 7/1/2018 ~$120,000.00 health insurance – employees contribution 50%, $15,000.00 life/disability.Other Post employment Benefits (OPEB); $800,000.00 unfunded liability under GASB68.Actuaries for retirement pension (not health).

Q:Do we have a bond rating?

A:No, we have a Revenue Anticipation Note (RAN). A RAN is per state preference.It allows MWRTA to work the cash flow, the line of credit eases up on the RANS.

MWRTA will provide a final budget in June, including the actual State and Federal funding levels.This Preliminary Budget is based on a formula and does not reflect grant funds we hope to obtain.

A motion was made by Joe Nolan: MWRTA Advisory Board Approval of the Preliminary Budget as proposed. Second.The vote was unanimous.

Independent Auditor’s Contract:

Consultant/CFO John Glynn:Three well qualified auditors responded to the bid for Audit Services. Cost proposals submitted ranged from $46,000, $45,000 to a low of $26,000 for the first year of the contract. Based on price and qualifications, the Evaluation Committee recommended to the Administrator that the current consultant, Roland C. Lambalot, be approved to provide independent audit services for one (1) year at a cost of $26,000, with an option for four (4) additional one year contracts at an increase of $1,000 per year.

A motion was made by Joe Nolan: MWRTA Advisory Board Approval of the Independent Auditor’s Contract as proposed under one year and four option years, at the discretion of the Administrator.

Second.The vote was unanimous.

Approval to Increase Existing Line of Credit:

Consultant/CFO John Glynn recommended that in an abundance of caution, the Advisory Board approve an increase in the RTA existing line of credit from $1,350,000 to $2,000,000. He explained that monthly expenses are currently approximately $900,000, and that the requested increase in the line of credit will carry the RTA through until anticipated funding is expected in August. It would be rolled into the RAN in September. Mr. Glynn further explained that this has been done over the last few years, pending anticipated funds.The floating market rate is attached to the prime.Current balance is $0. Waiting on MassDOER for reimbursement of $400,000 used in the CNG project. There are no immediate pending additional funds expected for cash flow purposes.

A motion was made by Joe Nolan: MWRTA Advisory Board Approval to increase existing line of credit as proposed from $1,350,000 to $2,000,000 as presented. Second.The vote was unanimous.

Approval to Exercise Option Year 1 of the Demand Response Contract:

Patrick Moynihan, General Counsel, advised the Board that the three year contract with KTI will expire on June 30, 2018. The recommendation to the Board is to exercise its 1 year option from July 1, 2018 to June 30, 2019, with the 3% increase in hourly rates consistent with the terms of the original contract. Mr. Carr stated that the service demand trend continues to increase, placing pressure on the operating budget. He pointed out that the MWRTA Travel Training Initiative and ride sharing to transition riders to the less costly Fixed Route, has helped to keep costs down. Generally, the demand response service has been doing well with little complaints. Wellesley is a challenge as they are on the border of transfers with MBTA service.IT is implementing five minute call back technology which will save the MWRTA minutes on every ride and saving costs at the end of the day. KTI has done an excellent job working with MWRTA in assisting with cost control.

A motion was made by Joe Nolan: MWRTA Advisory Board Approval to exercise Option Year 1 of the Demand Response Contract as proposed.

Second.The vote was unanimous.

Board Member Comments:

Brian Herr was thanked by the Administrator for his participation and assistance with the MWRTA Solar PV Project.

Deb Galloway began the Sudbury Shuttle on April 12^th with 7 riders a day and is currently up to 12 riders.Bay Path Elder Services Grant proposal may allow for an expansion in service.

The next Advisory Board meeting will be in June for budget purposes.

A motion was made by Mr. Nolan: To adjourn the meeting.

Second: The vote was unanimous. The meeting was adjourned at 11:50 am.

The undersigned being the duly qualified acting clerk of the MetroWest Regional Transit Authority Advisory Board, acknowledges that the foregoing minutes accurately reflect the actions

taken at a legally convened meeting of the Advisory Board held on April 30, 2018.

Ed Burman, Clerk

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