CHARLESTON AREA REGIONAL TRANSPORTATION AUTHORITY CARTA FINANCE COMMITTEE MEETING 1:00 P.M.
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1 C H A R L E S T O N A R E A R E G I O N A L T R A N S P O R T A T I O N A U T H O R I T Y CARTA FINANCE COMMITTEE MEETING 1:00 P.M. on WED, AUGUST 19, 2015 Lonnie Hamilton III Public Service Building 4045 Bridgeview Drive 2 nd Floor Conference Room B-225 North Charleston, SC AGENDA 1. Call to Order 2. Consideration of Minutes 07/15/15 Meeting 3. Budget Performance Report July Authorization of Check Signature Authority 5. CARTA Financial Overview Presentation 6. Contract Renewal re: On-Call A&E Services w/davis & Floyd 7. Impact of Base Fare Increase on CASH Fare Ridership Revenue 8. College of Charleston MOU 9. Medical University of South Carolina MOU 10. Vehicle Acquisition a. Dallas Area Rapid Transit (DART) Bus Resolution to Purchase b. State Contract Cutaway Buses c. Trolley Vehicle Replacement 11. Other Business, If Any 12. Adjournment Please note that the next regularly scheduled meeting of the CARTA Finance Committee will be WEDNESDAY, 09/16/15 in Room B-225 of the Lonnie Hamilton III Public Service Building, 4045 Bridgeview Drive, North Charleston, SC Notice, including agenda documentation, will be sent to Board Members in advance of the meeting, as well as posted on 1
2 ITEM 2 consideration of minutes 2
3 FINANCE COMMITTEE MEETING 1:40 PM on WED, 07/15/15 Lonnie Hamilton III Public Service Building 4045 Bridgeview Drive, Room B-225 North Charleston, SC CARTA BOARDMEMBERS IN ATTENDANCE: Councilmember Michael Seekings, CARTA Secretary/Treasurer & Finance Committee Chair, City of Charleston Chairman J. Elliott Summey, CARTA Chair, Charleston County Council Councilmember Chris O Neal, CARTA Vice-Chair, Town of Mount Pleasant Councilmember Ed Astle, City of North Charleston Councilmember Michael Brown, City of North Charleston Councilmember Colleen Condon, Charleston County Council Councilmember Anna B. Johnson, Charleston County Council Councilmember James Lewis, Jr., City of Charleston Councilmember Gary Santos, Town of Mount Pleasant Mr. Alfred Harrison, Representing the Charleston County Legislative Delegation Lt. Dennis Turner, Proxy for Mayor Minnie Newman-Caldwell, City of Hanahan Mr. Michael Mathis Proxy for Mayor Joseph P. Riley, Jr., City of Charleston CARTA STAFF IN ATTENDANCE: Mr. Ronald E. Mitchum, Executive Director Mr. Jeffrey Burns, AICP, Planning & Operations Manager Ms. Michelle Emerson, Marketing & Communications Manager Ms. Leslie Stubblefield, CPA, Financial Administrator Ms. Sarah Whitt, Office Manager CONTRACT STAFF & GUESTS IN ATTENDANCE: Mr. Daniel Brock, Rawle Murdy Associates Mr. Derek Bruen, Transdev Regional VP Ms. Helen Hiser, McAngus Goudelock & Courie Ms. Sharon Hollis, Davis & Floyd Ms. Cindy Mitchell, Transdev Operator Ms. Robin Mitchum, BCD COG Ms. Ginger Stevens, Transdev General Manager CALL TO ORDER The CARTA Board Chair, Chairman J. Elliott Summey, opened the Wednesday, 07/15/15, meeting of the CARTA Finance Committee at 1:40 PM in Room B-225 of the Lonnie Hamilton III Public Service Building, 4045 Bridgeview Drive, North Charleston, SC A quorum was confirmed for the meeting to continue with the Budget Performance Report. BUDGET PERFORMANCE REPORTS JUNE 2015 Chairman Summey introduced this item and deferred to Ron Mitchum, Executive Director, to brief the Committee. Mr. Mitchum called on Leslie Stubblefield, CPA, Financial Administrator to provide the Budget Performance Report for June Ms. Stubblefield reported the following highlights for the June 2015 month-end and YTD expectations for closing FY 2015: YTD surplus of a bit over $700,000 - This is the same position as this time FY 2014 with no available funds to draw down for August or September - Result: estimated year-end deficit of ~$450,000 Payments to Transdev in an amount of ~$2.4 million 3
4 Mr. Mitchum noted that Derek Bruen, Transdev Regional VP, was in attendance but needed to catch a flight home, and he requested a few moments in which to address the Committee. Mr. Bruen thanked the Committee for allowing unscheduled comments in order to accommodate his schedule. He introduced himself to any previously unfamiliar faces and commended Ginger Stevens, Transdev General Manager, and David Bonner, Transdev AGM/Maintenance Manager, for their dedicated service to both Transdev and CARTA. Mr. Bruen said that Transdev was very appreciative of the opportunity to partner with CARTA over many years and was very aware of the recent tragedy which occurred at the Emanuel AME Church in Charleston. Mr. Bruen said that Ms. Stevens immediately reached out to him in an effort to identify any assistance available in support of the community tragedy. Concurrent with these discussions, Cindy Mitchell, Transdev Operator, took a personal initiative to raise money in support of the Emanuel Nine Support Fund. Transdev Executives discussed various ways to assist and announced that Transdev would match any employee donations dollar for dollar as a donation to the support fund for the Emanuel Nine Support Fund. As such, Mr. Bruen was present to present CARTA with a check of $15, to be forwarded to the appropriate organization to support the Emanuel Nine Support Fund. Chairman Summey and the Committee were very appreciative of this demonstration of respect and partnership for the Charleston Community. Chairman Summey also commended the efforts of Transdev Staff in support of extended CARTA service to support the movement of large numbers of the community who wished to attend special commemorative events during this regrettable time. CONSIDERATION OF MINUTES 06/17/15 Councilmember Seekings introduced this item and asked if there was a motion from the floor. Councilmember Ed Astle, City of North Charleston, entered a motion to approve the 06/17/15 Finance Committee minutes, as submitted. A motion second was entered by Councilmember Michael Brown, City of North Charleston. With no changes, corrections or comments, the motion was approved unanimously. Mr. Mitchum confirmed that the schedule of FY 2016 Budget Presentations to member jurisdictions, as well as the multiple public meetings regarding the proposed fare increase and route changes, was being developed. CONTRACT RENEWAL re: ON-GOING BUS SHELTER REPAIRS Councilmember Seekings introduced this item. Mr. Mitchum reported this was a recommendation to consider the renewal of CARTA s current contract with Stenstrom & Associates for on-call repairs to CARTA bus shelters. Chairman Summey entered a motion to approve the recommendation of contract renewal to the full CARTA Board; a second to the motion was entered by Councilmember Brown. With no questions, concerns or comments, the motion was voted and passed unanimously. CONTRACT AWARD re: HEAVY DUTY TRANSIT BUSES Councilmember Seekings introduced this item. Mr. Mitchum reported that information was delayed to the Committee because additional negotiations with SCDOT were undertaken during/after the agenda distribution to identify some additional state funds to complete CARTA s required match for the available federal funds. Chairman Summey entered a motion to approve the recommendation of this contract to the full CARTA Board; a second to the motion was entered by Councilmember Anna B. Johnson, Charleston County Council. Councilmember Seekings asked about the timing of this contract. Mr. Mitchum confirmed that New Flyer had a gap in their production schedule where CARTA could get at least one vehicle in production immediately if notified today. The production schedule would take ~ 16 weeks to completion. Mr. Mitchum said the additional funds from SCDOT to complete the required local match could potentially be a deduction against FY 2016 State Mass Transit funding. Chairman Summey asked for a reminder to speak to Chairman Rozier about this funding issue. With no additional questions, comments or concerns, the motion was voted and passed unanimously. NORTH CHARLESTON MOU re: INTERMODAL PROJECT Councilmember Seekings introduced this item. Mr. Mitchum asked Jeffrey Burns, Planning & Operations Manager, to brief the Committee. 4
5 Mr. Burns said Wannetta Molette, City of North Charleston, hosted a meeting to update the public specifically the Liberty Hill Community about the status of the Intermodal Project. There were (41) members of the public attending. They were advised that the project had been down-sized with more landscaping and less parking with project boards for review. The update specifically addressed the efforts to incorporate and mitigate community concerns and suggestions. Mr. Burns said the flavor of the meeting was very positive with minimal, if any, negative comments. Mr. Mitchum said he anticipated any future written comments to be received would remain fairly positive. As such, he recommended support by the Finance Committee to approve the North Charleston MOU re: the Intermodal Project. Chairman Summey entered a motion in support of this agreement; a second was entered by Councilmember Astle. With no additional questions, comments or suggestions the motion was voted and approved unanimously. OTHER BUSINESS, IF ANY Councilmember Seekings asked if there were any additional items to be considered by the Finance Committee at this time other than a final Thank You to Transdev for taking the lead on contributing to a support fund for the friends, family and church of the Emanuel Nine. On the subject of CARTA s letter to the FTA regarding an appropriate repayment plan for Intermodal Project funding, Mr. Mitchum advised the Committee that CARTA s request for a 10-year repayment plan was denied. He said the usual repayment term was 3-years, and they indicated their acceptance of a 5-year repayment term. Mr. Mitchum confirmed that Staff was developing the appropriate payment schedule to meet those terms. Councilmember Seekings asked if CARTA could make a 5-year repayment term work. Mr. Mitchum confirmed it so. Chairman Summey recognized the attendance of Cindy Mitchell, Transdev Operator, who had begun the personal initiative to help raise funds for the Emanuel Nine which was ultimately matched by Transdev. The Committee warmly recognized Ms. Mitchell and commended her as a Transdev employee, as well as her community spirit and generosity. Councilmember Seekings said that he would personally deliver this check for $15, to Mayor Riley that very day. ADJOURNMENT With no additional business for this session of the CARTA Finance Committee, Councilmember Seekings received a motion and a second to adjourn the 07/15/15 meeting at 1:52 pm. 5
6 ITEM 3 BUDGET PERFORMANCE REPORT 6
7 7
8 8
9 9
10 10
11 11
12 12
13 ITEM 4 AUTHORIZATION OF CHECK SIGNING AUTHORITY 13
14 ITEM 5 CARTA FINANCIAL OVERVIEW PRESENTATION 14
15 ITEM 6 CONTRACT RENEWAL ON-CALL A&e SERVICES 15
16 16
17 17
18 ITEM 7 IMPACT OF BASE FARE INCREASE ON CASH FARE RIDERSHIP 18
19 CARTA Charleston Area Regional Transportation Authority MEMORANDUM TO: FROM: Ron Mitchum, Executive Director Jeffrey Burns, Planning & Operations Manager DATE: August 11, 2015 SUBJECT: CC: Revenue Projection for the FY 2016 Fare Increase FILE During the July 2015 meeting of the CARTA Finance Committee, a question regarding the revenue projection was asked. CARTA farebox payments require exact change. Staff has made an estimate that fifty percent (50%) of cash-paying customers pay the fare with two dollar bills. Cash-paying customers currently comprise approximately thirty-one percent (31%) of ridership. A $0.25 fare increase would provide a fourteen percent (14%) increase on revenue from this increased base fare, as well as across all pass types. The effect has resulted in the following: $ 528,202 Original fare increase estimate; $ 86,000 Updated projected revenue increase from pass sales; $ 200,000 Updated projected revenue increase from cash fares (applying the 50% estimate to cash receipts for cash-paying customers making an overpayment The FY 2016 budget, as currently drafted, does not include the projected revenue from the fare increase. Staff recommends that we proceed with the budget as currently drafted and implement a mid-year budget adjustment based on the actual receipts. At the Board s direction, new revenue would be reserved and segregated for capital purchases to replace aging equipment. Please feel free to contact me with any questions or for further information. 19
20 ITEM 8 COLLEGE OF CHARLESTON MOU 20
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23 ITEM 9 MEDICAL UNIVERSITY OF SC MOU 23
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26 ITEM 10 VEHICLE ACQUISITION - DART RESOLUTION - STATE CUTAWAY CONTRACT - TROLLEY VEHICLE REPLACEMENT 26
27 27
28 28
29 ITEM 11 OTHER BUSINESS - IF ANY - 29
30 ITEM 12 ADJOURNMENT 30
CHARLESTON AREA REGIONAL TRANSPORTATION AUTHORITY FINANCE COMMITTEE
1. Call to Order C H A R L E S T O N A R E A R E G I O N A L T R A N S P O R T A T I O N A U T H O R I T Y FINANCE COMMITTEE 1:30 pm on WED, September 17, 2014 Lonnie Hamilton III Public Service Building
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