BOARD OF DIRECTORS. Draft Minutes of the October 19, 2017, Meeting Spokane Transit Boardroom 1229 West Boone Avenue, Spokane, Washington

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1 1230 West Boone Avenue Spokane, Washington (509) BOARD OF DIRECTORS Draft Minutes of the, Meeting Spokane Transit Boardroom 1229 West Boone Avenue, Spokane, Washington MEMBERS PRESENT Pamela Haley, City of Spokane Valley, Chair Al French, Spokane County Josh Kerns, Spokane County Amber Waldref, City of Spokane Candace Mumm, City of Spokane Odin Langford, Small Cities Representative (Liberty Lake) Rhonda Bowers, Labor Representative Tom Trulove, Small Cities Representative (Cheney) Ex Officio Kevin Freeman, Small Cities Representative (Millwood) Ex Officio MEMBERS ABSENT Ed Pace, City of Spokane Valley Aspen Monteleone, Small Cities Representative (Airway Heights) John Higgins, Small Cities Representative (Medical Lake) STAFF PRESENT E. Susan Meyer, Chief Executive Officer Steve Blaska, Director of Operations Lynda Warren, Director of Finance & Information Services Karl Otterstrom, Director of Planning & Development Nancy Williams, Director of Human Resources Beth Bousley, Director of Communications & Customer Service Emily Arneson, Ombudsman & Accessibility Officer PROVIDING LEGAL COUNSEL Laura McAloon, Witherspoon Brajcich McPhee PLLC 1. CALL TO ORDER AND ROLL CALL Chair Haley called the meeting to order at 1:35 p.m. and conducted roll call. 2. APPROVE BOARD AGENDA Mr. French moved to approve the Board agenda, Mr. Langford seconded and the motion passed unanimously. 3. PUBLIC EXPRESSIONS Charles Hansen Mr. Hansen is a member of the Citizen Advisory Committee. He spoke in support of agenda item 8.A City of Spokane Interlocal Agreement for Ermina/Greene Traffic Signal and said that location is a busy corner for traffic. Brandon Blankenagel Mr. Blankenagel, City of Spokane, spoke in support of item 8.A and thanked STA and Spokane Community College for their partnership. Greg Stevens Mr. Stevens, Spokane Community College, spoke in support of item 8.A; he said wayfinding is critical and the traffic light would be a major benefit especially since the North/South Corridor will be near the campus.

2 Page 2 Jerome Green Mr. Green has produced a video called Destination Point about public transportation in Spokane since the 1880 s. It can be viewed on You Tube. He has met with businesses for whom public transportation is essential and believes there is potential for new tourism and conventions. He requests funding from STA to continue this effort. Joann Watts Ms. Watts, Pinecroft Business Park, is a proponent for transit to the park which is situated in the Spokane Valley. It is a 96 acre park serving 2,000 employees and the tenants would like to have transit service. 4. RECOGNITIONS AND PRESENTATIONS A. Third Quarter 2017 Years of Service Awards Ms. Williams read the names of the employees with 5, 10, 15, 20, 25 and 30 years of service. Janet Stowe here. Coach Operators Michael Fink and Heidi Tschabold have 30 and 25 years respectively. B. Third Quarter 2017 Employee Recognition Winners Ms. Williams read the names of those who won the employee recognition awards for the third quarter of This program was approved by the Board to acknowledge employees who go the extra mile in the course of their work. 5. PUBLIC HEARING A. Proposed 2018 Operating & Capital Budgets Ms. Haley opened the public hearing at 1:50 p.m. Ms. Warren said the STA website contains a narrated version of the budgets: The video has been shown at the recent All Employee Meetings and Planning & Development Committee meeting. The video was presented to the Board and contains the following highlights: Operating Budget The total operating budget is $72,844,230 with a 5.5% increase over Ms. Warren explained that budget includes the following additional personnel: Fixed Route Coach Operators (+ 7 full-time/- 3 part-time) Fixed Route Supervisor (+1) Facilities Laborer (+2) General Repair Vehicle Technician (+3) Service Cleaner (+1) Customer Service (+1 full-time/-2 part-time) Paratransit Reservationist (+1) Senior Network Engineer (+1) Communications Specialist (+1) Total: +18 full-time/-5 part-time Also included in this budget is a wage increase of 2% for Management & Administrative staff. ATU 1015 continues negotiations (contract expired March, 2017), and AFSCME 3939 and ATU 1598 will be in negotiations in Both medical plans include increased premiums for 2018: Kaiser at 20% and Premera at 22%. Fuel costs continue to decrease and this is also reflected in the budget.

3 Page 3 The largest proportion of operating expenses is Fixed Route at approximately $47M and Paratransit at $13M. Labor and benefits are almost half of the total operating expenses and it should be noted that, as mandated in the National Transit Database, the benefits category includes paid time off which is usually under the labor category in other organizations. Revenue Assumptions for sales tax revenue remain at a Board approved trendline of 3% that has been reset from the 2014 actual. Also included is a one-time addition of $500,000 to reflect current economic conditions. A fare increase will take effect July 1, 2018 and federal and state grants are expected to be approximately $9.5M. Estimated operating revenues for 2018 are $84.5M (9.3% over 2017). It is anticipated there will be a 7% increase in fixed route service and a 1.5% increase in paratransit as a result of STA Moving Forward. Capital Budget The total Capital Budget is $43.5M and includes federal and state grants and local funding. Facilities (Northwest Boone garage) at $13M and High Performance Transit at $12.1M are the largest capital expenses. New and replacement vehicles are $9.5M. There is an increase of 32.3% between the 2017 and 2018 budgets. Excluding the total Board designated reserves of $21.3M, there is estimated to be $10.9M remaining for capital expenses. Following this public hearing, the Board will consider adoption of the budgets at the November 16, 2017 meeting. Ms. Haley asked three times for comments from the public. Hearing none, she closed the public hearing at 2:05 p.m. 6. BOARD ACTION CONSENT AGENDA Mr. French moved to approve consent agenda items 6.A through F, Mr. Langford seconded and the motion passed unanimously: A. Approve the minutes of the September 21, 2017 Board meeting. B. Approve the following vouchers and payroll for September, 2017: DESCRIPTION VOUCHER/ACH NUMBERS AMOUNT Accounts Payable Vouchers (September) Nos $ 2,636, Workers Comp Vouchers (September) Nos $ 89, Payroll 09/01/17 ACH 09/01/17 $ 1,121, Payroll 09/15/17 ACH 09/15/17 $ 1,643, Payroll 09/29/17 ACH 09/29/17 $ 1,167, WA State DOR (Use Tax) ACH W0640 $ 8, SEPTEMBER TOTAL $ 6,667, C. Adopt a Resolution for 2018 Special Community Events Fare Structure and Tariff Policy & Procedures. D. Award of Contract for On-Call Architecture & Engineering Services. E. Accept Plaza Upgrade & Release Retainage. F. Approve Veterans First Van Grant. 7. BOARD ACTION COMMITTEE RECOMMENDATIONS: A. Draft Annual Strategic Plan Mr. French said the Planning & Development committee recommended approval of STA s Annual Strategic Plan and also discussed Spokane Regional Transportation s Horizon 2020 plan. The Annual

4 Page 4 Strategic Plan provides guidance to help shape Spokane Transit s activities for the coming year. Ms. Meyer said the plan is resourced by the budget and will include: New Service Extend the Medical Shuttle (Route 2) to connect the south side of the University District with health care facilities on the South Hill Extend night and weekend service to the Indian Trail area on Route 23 Evaluate options and implement new service to serve the new West Plains Transit Center Improve schedule reliability on Routes 25 and 90 and others High Performance Transit (HPT) Continue progress in implementing HPT in 5 corridors: Central City Line (CCL) Final design for the new 6-mile Bus Rapid Transit (BRT) route Procurement strategy in progress Goal for funding in Fiscal Year 2019 congressional budget Cheney Corridor Complete construction of West Plains Transit Center in fall 2018 Design work on Four Lakes Station (construction in 2019) Full corridor implementation scheduled for 2021 Division Corridor ADA improvements and shelters added Three-door articulated coaches deployed on route Reliability improvements Monroe/Regal Corridor Design of project, including Moran Prairie Park & Ride, complete Advertise for bid early 2019 Sprague Corridor Targeted investments at Sherman and Sprague additional station improvements Core Infrastructure Northwest Boone Garage construction begins in 2018 with completion in 2019 Fare Collection System replacing existing fareboxes from 2006 West Plains Transit Center complete Park & Ride, bus service connecting Cheney/Medical Lake Increase Ridership Fixed Route service increase of 7.5% Fixed Route ridership increase of 1.5% Paratransit ridership increase of 1.5% Vanpool ridership increase of 2.5% Fares Second of two-step increase in July 2018 from $1.75 to $2.00 for two-hour pass; monthly pass from $50 to $60. Ms. Waldref asked about the goal for the vanpool program. Ms. Meyer said this program has experienced ups and downs. Large employers are reducing the number of vanpools and a goal of 2.5% is reasonable.

5 Page 5 Mr. Blaska said there may be growth in the new vanpool flex program where employees can take a bus and van to work sites. Ms. Waldref moved to approve the 2018 Annual Strategic Plan as presented. Ms. Mumm seconded and the motion passed unanimously. 8. BOARD ACTION OTHER: A. City of Spokane Interlocal Agreement for Ermina/Greene Traffic Signal Mr. Otterstrom said an interlocal agreement requires Board approval. This project is a multi-party effort between the City of Spokane, Spokane Transit, Spokane Community Colleges and Washington State Department of Transportation. He added that the long-term goal is to move the transit center from its current location north of the clock tower on the Spokane Community College campus to the southeast to a new location north of Mission Avenue; however, the need for a traffic signal on Ermina is vital to passenger safety both now and in the future. Construction will begin April 30, The costs will be split between STA and the City of Spokane 80/20 with a cap of $450,000. This has been revised form the original amounts of $600,000 (STA) and $150,000 (City of Spokane) that were shown to the Performance Monitoring & External Relations Committee. That committee made no recommendation to the Board on this item. Ms. Mumm expressed concern about cost overruns with this cap. The City of Spokane will be responsible for any charges over the $450,000. Mr. Otterstrom explained that there is an amount built in to the total which allows for a difference of approximately $130,000 more than the latest cost estimates. Ms. Mumm moved to keep the original amounts of $600,00 payable by STA and $150,000 payable by the City of Spokane in Section II. A and B of the interlocal agreement. Ms. Waldref seconded the motion for discussion purposes. Mr. French said the agreement language states STA will pay for the signal not the construction, realignment etc. Mr. Otterstrom said in order to put up the signal there will involve construction; in the interests of the transit passengers and pedestrians this needs to go out for bid in early He added that $562,500 is the total amount to be spent and STA s share is 80%. Mr. French said if STA is paying for more than a signal, this must be clarified. Ms. Mumm suggested this could be covered under Section I. which states... installation of a traffic signal... Ms. McAloon pointed out that Exhibit A shows the breakdown of costs which includes associated channelization and street work. Discussion followed concerning funding for the project. Mr. French spoke against the motion, saying it is not necessary to show higher costs for the project than are needed. Ms. Waldref said Ms. Kathy Gunderson is in attendance from the SCC neighborhood and is very supportive of this project. The neighborhood is providing funding for the design. Ms. Mumm said this is a risk assessment and it is possible that an emergency budget will have to be sought if there are not enough funds. The motion failed with one voting for and five voting against. Mr. French moved to authorize the CEO to execute an agreement between STA and the City of Spokane for sharing the cost of a new traffic signal at Ermina Avenue and Greene Street for no more than $450,000 of 80% of the cost thereof, whichever is less. Mr. Langford seconded and the motion passed unanimously. B. Release of Purchase Option on Real Property in City of Cheney Mr. Otterstrom said in 2000 Spokane Transit entered into a purchase and sale agreement with the City of Cheney for land whereon the K Street Station is located. The City of Cheney conveyed an option to purchase lots 8 and 9 on the same block and is now seeking to sell the lots on which multi-family

6 Page 6 apartments may be built. There is no need for STA to expand its current facility and suggests the Board authorize the CEO to decline the exercise of STA s first right of refusal. Mr. French moved to authorize the CEO to execute all documents necessary to decline the exercise of STA s First Right of Refusal on real property being sold by the City of Cheney on Block 141, City of Cheney, Spokane County. Mr. Langford seconded and the motion passed unanimously. 9. BOARD OPERATIONS COMMITTEE: A. Chair s Report This meeting was cancelled. Ms. Haley said she attended the recent APTA Annual meeting & EXPO in Atlanta and it was very educational. 10. PLANNING & DEVELOPMENT COMMITTEE: A. Chair s Report Mr. French said the committee discussed the items already on the Board agenda. 11. PERFORMANCE MONITORING & EXTERNAL RELATIONS COMMITTEE: A. Chair s Report Ms. Waldref said the committee discussed the traffic signal at Ermina and Greene and service revisions for September 2018 that includes the direct connection for Medical Lake and Cheney and extended service at night and weekends for Indian Trail. The Veterans First Van Grant was recommended for approval by the Board. 12. CEO REPORT Ridership Fixed Route bus ridership in September 2017 decreased by 2.7% over September 2016 for a year-todate decrease of 0.4%. On time performance was 92%. Paratransit ridership increased by 0.2% over September 2016 for a year-to-date increase of 1.1%. Vanpool ridership decreased by 14.5% over September 2016 for a year-to-date decrease of 7.0% with 6 fewer vans in service (83 vs. 89). A new vanpool in Pullman started September 1. September 2017 had one fewer weekday than September Revenue Update Non-Capital revenue through August 2017 at $53.4M is 69.1% of the budget. September 2017 sales tax revenue (collected on July 2017 retail sales) increased 29.1% over September 2016 actual* for a year-to-date increase of 14.9% year-to-date actual and 9.5% over budget. *The extra one tenth of one percent sales tax approved by voters in November 2016 is included. Expenditure Update Operating expenditures through August 2017 at $42M are 60.9% of the budget. The timing of fuel and other expenditures can cause this percentage to vary significantly.

7 Page 7 FTA Small Starts Grant Rating The Federal Transit Administration (FTA) has given the Central City Line project a Medium rating which is the statutory threshold for projects being eligible for a Small Starts appropriation. Funding will be subject to congressional appropriations in the Fiscal Year 2019 budget cycle. West Plains Transit Center Work progresses on time and within budget and the project is on track for a Fall 2018 opening. East Sprague Bus Stops Two stop pairs have been built at Napa and Helena by the City of Spokane on STA s behalf and represent early High Performance Transit improvements on the Sprague Corridor. Dwell times have dropped more than 50% over pre-construction conditions. APTA Annual Meeting & EXPO Four STA Board Members and staff attended the recent transit conference in Atlanta. They met with the new FTA Acting Administrator and at the EXPO met with various bus manufacturers with regard to electric buses. Chief Operating Officer candidates The hiring for Steve Blaska s position continues and the list of candidates is being narrowed down. 13. BOARD INFORMATION A. Committee Minutes B. August 2017 Financial Results Summary D. September 2017 Sales Tax Revenue E. August 2017 Operating Indicators F. 2 nd Quarter 2017 Performance Measures G. Horizon 2040 Update 14. NEW BUSINESS None. 15. BOARD MEMBERS EXPRESSIONS None. 16. EXECUTIVE SESSION At 3:05 p.m., Chair Haley announced that the Board would adjourn for an Executive Session for the following purposes: 1. Discussing, planning or adopting the strategy or position to be taken by the STA Board of Directors during the course of ongoing collective bargaining. 2. Litigation or legal risks of a proposed action or current practice that the agency has identified when public discussion of the litigation or legal risks is likely to result in an adverse legal or financial consequence to the agency (RCW (1)(i)(iii). The STA Board of Directors will reconvene in open session at approximately 3:20 p.m. If it becomes necessary to extend the Executive Session, Legal Counsel or a member of staff will return to announce the time at which the STA Board will reconvene. At 3:17 p.m. Ms. Waldref and Mr. Langford left.

8 Page 8 At 3:20 p.m., Ms. McAloon, announced the Board of Directors will reconvene at 3:30 p.m. At 3:30 p.m., Ms. McAloon, announced the Board of Directors will reconvene at 3:37 p.m. At 3:37 p.m., Ms. McAloon, announced the Board of Directors will reconvene at 3:47 p.m. At 3:42 p.m. Ms. Haley left. At 3:47 p.m., Ms. McAloon, announced the Board of Directors will reconvene at 3:57 p.m. At 3:55 p.m. Mr. Freeman and Ms. Mumm left. At 3:57 p.m. the Board of Directors reconvened. There was no quorum. 17. ADJOURNED With no further business to come before the Board and no quorum the Clerk closed the meeting at 3:57 p.m. Respectfully submitted, Jan Watson Executive Assistant to the CEO & Clerk of the Authority A video of the Board meeting may be viewed on STA s website the week after the meeting. Cable 5 Broadcast Dates and Times of Board Meeting: Saturday, Oct 21, :00 p.m. Monday, Oct 23, :00 a.m. Tuesday, Oct 24, :00 p.m. Next Committee Meetings (STA Conference Rooms, West Boone Avenue, Spokane, Washington): Planning & Development Nov 1, 2017, 10:00 a.m. (Southside) 1229 West Boone Performance Monitoring & External Relations Nov 1, 2017, 1:30 p.m. (Southside) 1229 West Boone Board Operations Nov 8, 2017, 1:30 p.m. (Northside) 1230 West Boone Next Board Meeting: Thursday, November 16, 2017, 1:30 p.m., STA Boardroom, 1229 West Boone Avenue, Spokane, Washington.