REGULAR BOARD MEETING MINUTES
October 27, 2014
STATE COLLEGE BOROUGH BUILDING
Conference Room 241, 243 S. Allen Street
State College, PA 16801
BOARD MEMBERS PRESENT: John Spychalski, Chairman
Joe Davidson, Vice-Chairman
Richard Kipp, Treasurer
STAFF PRESENT: Louwana Oliva, General Manager
Eric Bernier, Director of Information Services
Kimberly Fragola, Director of Finance
Joe Soloski, Financial Analyst
Greg Kausch, Senior Transportation Planner
Marsha Kyper, Assistant to the General Manager
OTHERS PRESENT: Mary Ann and Roy Beckwith, retired CATA Bus Operator and husband
I. CALL TO ORDER
Chairman Spychalski called the meeting to order at 4:02 p.m.
II. PUBLIC COMMENT
There was no public comment.
III. OLD BUSINESS
A. Approval of Minutes of September 22, 2014 Regular Board Meeting
Chairman Spychalski entertained a motion to approve the September 22, 2014 regular board meeting minutes with two minor additions. Tammy Gentzel moved and Tom Kurtz seconded. The motion carried unanimously.
B. Approval of Minutes of October 2, 2014 Special Board Meeting
Chairman Spychalski entertained a motion to approve the October 2, 2014 special board meeting minutes with the addition on page two, after the second sentence in the first paragraph, of: The General Manager provided an email to the board entitled “I have the green light from PennDOT” on September 30 outlining the conversation and concurrence from PennDOT for proceeding with the project.” Richard Kipp moved and Joe Davidson seconded. The motion carried unanimously.
C. Receipt of September 2014 Finance Report
Kimberly Fragola reported that we are at 20% of budget 25% through the fund year; referenced the summary she provided of the Workman’s Compensation Refund allocation, and requested feedback on the changes made to the Cash Position and Solvency Analysis and Operating Cash Flow Projection reports. The board consensus was that the changes to the reports had met their expectations.
Tom Kurtz requested that more detail be provided in the report memos when figures are either high or low, to provide context and future expectations. Tammy Gentzel requested another copy of last month’s Projection of Operating Revenue, Expenses and Deficit report. Louwana Oliva reported that two buses which had been retained in the contingency fleet had been sold, because they did not meet the definition of contingency which means road ready and would require too much money to put back into service.
Kimberly went on to report that M&T bank has reduced the amount of the construction line of credit, into which the bus procurement line of credit had been consolidated, from $5 million to $3 million; she and Louwana Oliva met with bank personnel who were asked to work on having the line of credit increased. Board consensus was that if M&T bank does not increase the line of credit other financial institutions should be considered.
Chairman Spychalski entertained a motion to receive the September 2014 Finance Report. Tammy Gentzel moved and Richard Kipp seconded. The motion carried unanimously.
D. Discussion of Budget Action – FICA Error
Kimberly Fragola reported that at the time the budget was prepared, a decimal point placement error was made when calculating FICA for drivers. Therefore, the budgeted amount needs to be adjusted from $36,919 to $369,189, the difference of which is $332,270. This unbudgeted amount is anticipated to be recovered through reduced spending in other areas of the budget of which we already have realized $76,683 through the allocation of the last $4,188 of the Worker’s Compensation credit, the elimination of a compensation study budgeted at $50,000 and $22,500 budgeted in Professional Services for CRPA dues that will be offset by unanticipated CCMPO funding.
Kimberly Fragola went on to report that other anticipated, but as yet not experienced savings in fuel costs are expected to reduce the overall budget short fall to $75,000. Kimberly further stated that as we are still very early in the fiscal year, it is entirely possible that we could end the year budget neutral. At this time, the Board may choose to either act to increase CATA’s overall approved budget by $75,000 or wait until later in the year when more is known to determine whether or not an approved budget amendment action is necessary.
The board concurred with the staff recommendation to revisit this budget item with the board at the January board meeting to determine if a budget amendment is needed.
E. Receipt of September Performance Reports
Louwana Oliva referenced the ridership report and commented that there was one more day of full service in September 2014 than in 2013 and three home football games this year versus two in 2013. Louwana further reported that:
· campus ridership continues to decline and that with Penn State reporting the sale of parking passes down, it may be that more people are using community routes and not driving to campus;
· the CATARIDE report reflected a 2012 trip total rather than 2013 and would be corrected; ridership is down 5%;
· 92 free senior passes were issued at the Hills Plaza Football shuttle stop the morning of the October 25 home game; senior ridership is up;
· transfers are up in areas where additional student housing has been built recently;
· we are starting to see a decline in early departures from timed stops;
· staff is watching the effect of the issuing of Ride for Five passes to graduate students in consideration of whether changes in the program structure based on increased usage might be needed.
Tom Kurtz suggested the addition of a footnote on the report to explain that the gray scale indicates items PennDOT is also monitoring state-wide.
Chairman Spychalski entertained a motion to receive the September performance reports. Joe Davidson moved and Tom Kurtz seconded. The motion carried unanimously.
F. Facility Expansion – Special Inspections
Louwana Oliva reported that the Centre Region Code Administration (CRCA) requires the building owner to hire a separate special inspector for construction projects to provide verification and inspection of soils, cast-in-place deep foundation elements, concrete construction, steel construction, aluminum construction, masonry construction and wind resistance.
Louwana Oliva went on to report that Gannet Fleming, CATA’s construction management firm, had assisted staff in developing the specifications for the procurement of special inspection services, and in the evaluation of the bids received; the proposal was sent to six testing/inspection firms, and three provided proposals: Hillis Carnes Engineering Associates, CMT Laboratories, and PSI; a summary of the bids review was included in the agenda packet.
Louwana Oliva further reported that because it is too early to know exactly when these special inspections will be required, but also because the codes office will not begin the permitting process until a special inspector is named, the proposals were evaluated strictly on the basis of time and material. Louwana stated that the independent cost estimate (ICE) for special inspection services had been estimated at approximately $95,980, and the contract is not expected to exceed $100,000 over the three years of construction unless special circumstances are experienced. Louwana concluded by stating that it is permissible for the contractor and CATA to use the same inspector, and that the cost of the special inspector is included in the budget for the project.
Chairman Spychalski entertained a motion to authorize the general manager to execute a contract with Hillis Carnes Engineering Associates for special inspection services for the facility expansion project at a cost not to exceed $100,000 over the life of the project. Tom Kurtz moved and Joe Davidson seconded. The motion carried unanimously.
G. Resolution – Contract Authorization
Louwana Oliva report that at the September meeting action on the Resolution for Contract Authorization was postponed until the document could be edited to reflect suggested revisions from board members; at the request of the board, a revised resolution was circulated for comment prior to this meeting.
Chairman Spychalski entertained a motion to adopt the resolution regarding contract authorization. Tom Kurtz moved and Tammy Gentzel seconded. The motion carried unanimously.
H. Strategic Plan Update – Chapter 6 - Rider and Non-Rider Involvement
Greg Kausch referenced Chapter 6 of the Strategic Plan Update – Rider and Non-Rider Involvement and provided an overall project status update. Greg asked board members to provide Chapter 6 review comments and questions to Marsha Kyper by Monday, November 10 so that these comments may be reflected in the final document.
This item was for information and discussion only; no formal board action was requested at this time.
I. Title VI Program – Adoption of Service Standards
Greg Kausch reported that CATA’s Title VI program had received FTA approval through November, 2015 and was subsequently approved by the board at the June 24, 2013 regular board meeting; during CATA’s most recent triennial review, the agency was found to be fully compliant with the exception of quantitative service standards and qualitative service policies, as these only became applicable to transit systems in communities with populations under 200,000 with the passage of and rulemaking related to MAP21. Greg referenced the proposed Title VI Service Standards and Policies document provided in the agenda packet.
The consensus was that the goal for early departures would be set at 0, and that a disclaimer would be added regarding the effect that equipment issues can at times have on departure times, and that early departures would be monitored on an ongoing basis and the standard refined as warranted.
Chairman Spychalski entertained a motion to adopt the Title VI Service Standards with the addition of a notation regarding the effect of equipment issues on early departures. Tom Kurtz moved and Tammy Gentzel seconded. The motion carried unanimously.
IV. NEW BUSINESS
A. Resolution of Appreciation – Retirement – Mary Ann Beckwith
Bus operator, Mary Ann Beckwith, who retired from CATA effective October 25, 2014, was present to receive a resolution of appreciation from the board.
Chairman Spychalski entertained a motion to adopt the resolution of appreciation for Mary Ann Beckwith. Tom Kurtz moved and Richard Kipp seconded. The motion carried unanimously.
B. CNG Sedan Purchase - Service Vehicles
Kimberly Fragola reported that at the August 26, 2013 meeting the board had approved the Consolidated Capital Application for state grant funding toward various projects, one of which was the purchase of four CNG sedans to be used as service vehicles, and the application was subsequently approved by PennDOT in the amount of $118,710 (100% state funding; no federal or local shares). A separate grant has also been awarded by DEP to CATA (in conjunction with other local organizations) in the amount of $12,560 for half of the incremental cost of the CNG fueling system for four sedans.
Kimberly went on to report that the Invitation for Bids (IFB) process has been carried out, and the low bidder is Dean Honda from Pittsburgh, PA, at $25,251 per sedan for a total cost of $101,004.
Chairman Spychalski entertained a motion to authorize the general manager to execute a contract with Dean Honda of Pittsburgh, PA for the purchase of four (4) CNG sedans at a total cost not to exceed $101,004. Joe Davidson moved and Tom Kurtz seconded. The motion carried unanimously.
V. OTHER BUSINESS
A. General Manager’s Report
Louwana Oliva stated that she had nothing further to report at this meeting.
B. Information Services Report
Eric Bernier referenced his written report.
Chairman Spychalski entertained a motion to adjourn the meeting. Tammy Gentzel moved and Joe Davidson seconded. The motion carried unanimously. The meeting was adjourned at 6:45 p.m.
Louwana S. Oliva, Secretary