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March 13, 2014

3:00 p.m.

2081 W. Whitehall Road

State College, PA 16801


BOARD MEMBERS PRESENT:     John Spychalski, Chairman

                                                            Joe Davidson, Vice-chairman

Richard Kipp, Treasurer

Tammy Gentzel



                                                            Tom Kurtz


STAFF PRESENT:                             Hugh Mose, General Manager

Louwana Oliva, Assistant General Manager

Kimberly Fragola, Director of Administration

Ryan Harshbarger, Director of Transportation

Eric Bernier, Service Development Manager

Sylvia Rosa-Ortiz, Human Resources Manager

Greg Kausch, Senior Transportation Planner

Joe Soloski, Financial Analyst

Marsha Kyper, Assistant to the General Manager



       I.            CALL TO ORDER

Chairman Spychalski called the meeting to order at 3:10 p.m.


    II.            PUBLIC COMMENT

There was no public comment.




            A.        Compensation for Non-represented Employees

Sylvia Rosa-Ortiz referenced her compensation proposal cover memo, and accompanying documents which included a table of local municipal compensation increases for 2014, CATA’s merit pay grid for 2010, 2011 and 2012, and a proposed 2014 merit matrix.  Sylvia stated that the staff recommends a Cost of Living Adjustment (COLA) of 1% and a merit pool of 3%.  The Board concurred with the staff recommendation.





B.        Update on the Penn State Contract

Louwana Oliva referenced her memo which provided an update on the contract negotiations with Penn State that include an increase in the hourly rate, recommended service changes, an increase in local share for capital and support for the extension of the Ride for Five program to graduate students.  Hugh Mose indicated that a tentative agreement had been reached after the memo had been written.


Tom Kurtz requested that an explanation be added to the Budget narrative acknowledging that the extension of Ride for Five passes to graduate students may impact ONEPASS sales.


The Board concurred with the staff recommendation regarding the Penn State contract.


C.        Local Share Update

Louwana Oliva referenced two previous meetings with the COG Finance Committee and reported that the Committee had agreed to forward the request for a 3% increase to the COG General Forum. Ryan Harshbarger referenced his memo which presented an update on local shares and an attachment which showed a “first cut” of the Miller Formula for the FY 2014/15 Budget.  Hugh Mose commented that Bellefonte had requested a 10% decrease in their support of public transportation.  The Board concurred with the staff recommendation to request a 3% increase in local shares.


D.        State and Federal Funding Update

Hugh Mose referenced his memo which provided an update on the status of state and federal funding.  The Board instructed Hugh Mose to request written confirmation of

PennDOT’s commitment of $20 million for the Facility Expansion project.  Hugh stated that the Budget had been developed before CATA’s federal appropriation increase of $88,000 was known.  The Board concurred with the staff’s approach to account for the current state and federal funding information in the FY 2014/15 Budget.


At 4:25 p.m. a break was taken; the Work Session resumed at 4:35 p.m.


E.        Building Cash Flow Projections

            Kimberly Fragola referenced her Building Cash Flow Projections spreadsheet noting the projected interest payment, which CATA will need to cover. Kimberly noted that moving costs are built into the Capital Budget.


F.        Future Year Projections

            Kimberly Fragola referenced her memo regarding Future Year Projections on Operating Revenues, Expenditures, Deficit/Subsidy and Reserve and the accompanying spreadsheet, noting that the projections had been based on receiving no increase in federal funding and a 5% increase in state funding.  Kimberly suggested that there is a need for the Board to develop a recommendation regarding the amount of reserve that should be maintained by CATA.  Kimberly further stated that the projections and Budget would be updated in response to having recently learned that CATA’s federal appropriation will increase by $88,000 this year, with no guarantee beyond that point.  In response to a comment from Hugh Mose, Kimberly stated that she will include a footnote indicating that the projections do not account for any growth in service.


 G.       Preliminary Draft Budget

            Kimberly Fragola referenced her cover memo and the Preliminary Budget spreadsheets. The Board requested that ONEPASSES be broken down by specific types.  The Board instructed the staff to obtain more information on Property and Liability costs charged by SAFTI.  Hugh Mose commented that the projected ridership increase for CATARIDE seemed high; Chairman Spychalski instructed the staff to reach a consensus on projected ridership for CATARIDE. 


            Kimberly Fragola noted that the large increase in the amount budgeted for tires was in anticipation of an upcoming Request for Proposals (RFP) for tires.


At 5:40 p.m. Chairman Spychalski granted Hugh Mose’s request to be excused to attend another meeting.  


            Kimberly Fragola noted that the preliminary draft budget will be revised based on comments and suggestions received at today’s meeting and that a Draft Budget will be presented for approval at the March Board meeting.



Chairman Spychalski declared the meeting adjourned at 6:00 p.m.





Hugh A. Mose, Secretary