Nashville MTA Board Meeting WeGo Central 400 Dr. Martin L. King Jr. Blvd. | Nashville, TN 37219 August 22, 2019 | 2:30 p.m. Board Members: Gail Carr Williams, Chair Janet Miller, Vice Chair Glenn Farner Hannah Paramore Breen Walter Searcy 1. Call to Order 2. Approval of June 27, 2019 and July 25, 2019 Minutes 3. Public Comments* 4. Operations & Finance Committee – Walter Searcy, Chair 5. New Initiatives & Community Engagement Committee – Janet Miller, Chair 6. Chair’s Report 7. Chief Executive Officer’s Report 8. Other Business 9. Adjourn * Please keep all public comments to the Board within three minutes. Thank you * − Body-on-Chassis Vehicle Replacement Purchase M-A-19-024 Pg. 13 − FY2020 Proposed Operating Budget M-A-19-025 Pg. 14
Transcript
Nashville MTA Board Meeting
WeGo Central
400 Dr. Martin L. King Jr. Blvd. | Nashville, TN 37219
NASHVILLE METROPOLITAN TRANSIT AUTHORITY Board of Directors Meeting
June 27, 2019
I. Call to Order: The regular meeting of the Nashville Metropolitan Transit Authority(Nashville MTA) Board of Directors was held at Music City Center, located at 201 5th AvenueSouth, Nashville, TN 37203 on Thursday, June 27, 2019.
Present: Gail Carr Williams, Chair; Janet Miller, Vice Chair; Hannah Paramore Breen, Member; Glenn Farner, Member; Walter Searcy, Member; Secretary Margaret Behm; and Chief Executive Officer Stephen G. Bland.
A quorum was established, and Chair Williams called the meeting to order at 2:40 p.m.
II. Approval of Minutes: Minutes of the May 23, 2019 board meeting were approved.
III. Public Comments: Chair Williams opened the floor for public comments. The public wasreminded that comments were limited to three minutes. Listed below are those who camebefore the Board with public comments:
Most comments made by members of the general public pertained to the Authority’s pending package of fare increases and service reductions and adjustments. Many individuals spoke eloquently about their reliance on transit service for almost all of their transportation needs, and their discouragement that service eliminations would severely compromise their ability to access jobs, educational opportunities and other life necessities. Others spoke to their concern about specific route and service changes – both in terms of their own travel needs, but also out of a concern for the broader community and to acquaintances. Many expressed an even deeper concern that the underlying issues that led to the Authority’s deficit would not be corrected, and that future years could see a repeat of this scenario. Several comments offered very specific suggestions with respect to routing and stop locations to help mitigate the negative impacts of the service reductions.
With respect to the proposed fare increase, while there was general recognition of the need to increase fares and a preference of fare increases over service reductions, there was significant concern expressed with respect to the impact of fare increases on low income riders – both on fixed route service and on Access. Several commenters recognized the need for a fare increase – but strongly believed that the proposed increase to Access fares in the revised proposal – from $3.40 to $4.00 was an excessive burden on customers with disabilities.
Some specific suggestions included:
1. A preference to preserve change cards, even if it meant increasing the fare to $2 inlieu of the $1.85 originally proposed.
James Thomas James Brown Kutonia Smith Patricia Valladares John Bull Steve Reiter Sam Petechala Roger Wammack Peter O’Connor Nancy Lee Holmes Darius Knight Danny Mosely Rhonda Clark Michael Milliner Delishia Porterfield Brad Briskey Buddy Hagerty Emery Hartz Sheila Hanson Richard Forberg Adam Nicholson Patrick Neazer Debra Duncan Shelia Hood Jessica Dauphin Lindsey Ganson Mr. Randolph Kennith VanBuren
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2. Specific concerns for retaining services to Metro Nashville Public Schools.
3. Keeping service free on Jefferson Street (though many also supported reinstating afare).
4. A general need to improve pedestrian crossings and other pedestrian safetyenhancements to improve the bus riding experience, particularly given the necessityfor more transfers under the pending service change proposals.
5. A concern over losing one-seat rides and forcing transfers where individuals retainedservice.
6. A general concern over the lack of funding for transit and a deep worry about potentialfuture service reductions.
7. There was a comment suggesting that the date of the proposed fare increase bepostponed from August 1 to August 2 in order to avoid discouraging riders from ridingon an election day.
a. Liability Insurance (M-A-19-016): In committee, Chief Financial Officer EdOliphant stated that every year our insurance broker shops the insurance market forrenewal of the Nashville MTA’s $3 million liability policy with a $100,000 deductibleper occurrence. Inquiries were made of seven different insurance companies for theupcoming policy year effective July 1, 2019 through June 30, 2020.
Three companies did not provide quotes due to lack of interest in our fleet make-upor do not quote on municipal fleets, and another three replied that they could notcompete with our current quoted prices.
The only quote received that met our scope was from our current insurancecompany, RLI Insurance (RLI), offering coverage with a $3 million limit and a$100,000 deductible per occurrence.
Based upon the information above, the Operations & Finance Committeerecommended that the Board authorize the Chief Executive Officer to enter into acontract with RLI Insurance for liability coverage for the period effective July 1, 2019to June 30, 2020 for $3 million in coverage with a $100,000 deductible for a premiumof approximately $884,220.
There was no further discussion. The vote of approval was unanimous.
b. MTA/RTA Contract Renewal for Regional Transit Services (M-A-19-017): Apositive working relationship has been established for many years between theNashville MTA and the Regional Transportation Authority of Middle Tennessee(RTA) on regional transit programs.
Each year, the RTA contracts with the Nashville MTA for regional transit services forDavidson/Rutherford County Relax & Ride services to Murfreesboro, Tennessee, aswell as connecting bus services to support the commuter train service for the WeGoStar in Nashville, Tennessee. The RTA desired to renew these contracts for theperiod of July 1, 2019 through June 30, 2020. Since there are different fundingsources for the regional bus services and the connecting bus services, two separatecontracts were required.
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The Operations & Finance Committee recommended to the Board to renew Contract 1 for regional bus services and Contract 2 for connecting bus services supporting commuter rail. Both of these contracts are for a period of one year beginning July 1, 2019 through June 30, 2020 for the following base amounts:
▪ Contract 1 for a not-to-exceed amount of $1,704,470 for regional bus services; and,
▪ Contract 2 for a not-to-exceed amount of $175,174 for connecting bus services supporting commuter rail.
There was no further discussion. The vote of approval was unanimous.
c. RTA/MTA Contract Renewal for State EasyRide Services (M-A-19-018): The RTA and the Nashville MTA have established a positive working relationship over the years on the regional EasyRide program involving the State of Tennessee.
For several years, the Nashville MTA and the RTA have participated in the EasyRide program with the State of Tennessee where both agencies provide transit rides to State employees, and the State reimburses both the Nashville MTA and RTA on a cost-per-ride basis. The Nashville MTA has been the principle in this contract with the State of Tennessee, and RTA’s portion of the rides provided is passed through via a separate agreement with the RTA. The Nashville MTA Board approved a new contract between the Nashville MTA and the State in last month’s meeting for the EasyRide Program for July 1, 2019 through June 30, 2020 at a cost per ride set at a weighted average of $2.50 per ride and a total contract not to exceed $1.75 million.
An analysis of state employee ridership for both the Nashville MTA and RTA services was performed, and it affirmed an effective rate of $3.15 per ride should be passed through to RTA from the Nashville MTA since RTA’s fares for regional bus service and train service are proportionately higher than the Nashville MTA’s fares.
Based upon the explanation above, the Operations & Finance Committee recommended to the Board to approve Nashville MTA to enter into a contract with RTA that calls for the Nashville MTA to reimburse RTA for EasyRide trips provided to State employees participating in the EasyRide program at a rate of $3.15 per ride for a period of one year, beginning July 1, 2019 through June 30, 2020.
There was no further discussion. The vote of approval was unanimous.
d. ITS MOA for Oracle DBA (M-A-19-019): The Metropolitan Government of Nashville and Davidson County Department of Information Technology Services (Metro ITS) provides WeGo Public Transit with information technology services. As part of this technology support, Metro ITS will host the servers for the new account-based fare collection system in their primary data center.
In addition to general licensing and support costs, the scale of the WeGo fare collection project requires Metro ITS to hire a new full-time Oracle Database Administrator. This position will be dedicated to support the first three years of the WeGo fare project implementation. Since it is anticipated that the required level of effort will decrease following initial implementation and burn-in, the percentage of work hours for this position required to support the fare project will be evaluated annually. If the position is no longer required in a full-time capacity for WeGo, an agreed-upon cost-sharing percentage would be established, or Metro ITS will assume full funding for this position. Over the three-year period, the maximum cost of this full-time position is expected to range from $420,000 to $534,000, depending
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on whether the position is covered via a new Metro employee hire or contractor, respectively. The actual amount incurred by the Nashville MTA may be less depending on future agreed-upon cost-sharing percentages.
Based on the information above, the Operations & Finance Committee recommended to the Board to authorize the Chief Executive Officer to enter into a Memorandum of Agreement (MOA) with the Metropolitan Government of Nashville and Davidson County Department of Information Technology Services to fund a new full-time equivalent position of Information System Advisor 2 (serving as an Oracle Database Administrator) for up to three years for a not-to-exceed amount of $534,000. Funding for year one of this position is available within the fare collection upgrade project capital budget. Funding for the position for years two and three will be allocated within the annual operating budgets for FY2021 and FY2022.
There was no further discussion. The vote of approval was unanimous.
V. New Initiatives and Community Engagement Committee Report: Vice Chair Miller reported the following:
a. Authorization for 2019 Fare Changes and Service Reductions and Adjustments (M-A-19-020): CEO Bland reviewed and explained the proposed changes and fare adjustment proposals needed to cover an estimated $8.7 million operation budget deficit. The NICE Committee recommended to the Board the approval and adoption of all service and fare changes recommended by staff in the Committee report. After the public comment period the Board amended the staff and New Initiatives & Community Engagement Committee recommendation. Walter Searcy moved, seconded by Janet Miller, that August 2, 2019 be the effective date of the changes, instead of August 1, 2019 based on comments from the public. The vote of approval was unanimous. Glenn Farner moved, seconded by Hannah Paramore Breen, that the Access rate be $3.70, instead of $4.00. This was, again, in response to comments from the public. The vote of approval was 4 in favor and none against with Walter Searcy abstaining.
Thus, the Board approved and adopted the service and fare changes as amended and described herein, summarized as follows:
a. August 2, 2019: Fare increase associated with the $2 base fare and elimination of pennies; the Access rate shall be $3.70 instead of $4.00
• August 2, 2019: Access on Demand would become a full service of WeGo Public Transit with a $7 base fare, a 14-mile base distance, and shared rides (trip grouping) allowed on the service;
• September 29, 2019: Service changes including all recommended eliminations and modifications in the Service Changes table implemented;
• Summer 2020: Fare structure changes noted in item associated with implementation of new fare technology system; and,
• December 31, 2020: Elimination of change cards and magnetics from the fare system.
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b. FY2020 Adoption of Continuation Budget (M-A-19-021): Over the last severalmonths, there have been open discussions with the NICE Committee and theNashville MTA Board regarding our FY2020 proposed operating budget and aprojected $8.7 million operating deficit. On June 18, Metro Council finalized theirFY2019-20 Operating Budget, and with it, the level of operating subsidy to theNashville MTA (which remains unchanged from last year). Given that the finalpackage of service changes and fare adjustments (each of which having a significantimpact on the operating budget) could not be finalized until the June meeting, staffcould not prepare a final recommended operating budget in time for the Junemeeting.
Based on the explanation above, the NICE Committee recommended to the Boardto approve a continuation budget based upon the current FY2019 Operating Budgetuntil the approved service and fare changes can be incorporated into a final FY2020Operating Budget. The final proposed FY2020 Operating Budget will be presentedto the Board for consideration in the July 2019 or no later than the August 2019 Boardmeeting.
There was no further discussion. The vote of approval was unanimous.
VI. Chair’s Report: Chair Williams began her comments by congratulating Vice Chair Milleron her reappointment to a five-year term to the Nashville MTA Board.
Chair Williams thanked everyone for their public comments and for being a part of the process. She stated that these aren't decisions we like to make and that she was thankful for the staff that worked hard to minimize the negative impact of these service changes. She further stated that some of the decisions made today will be life-altering for some, but she knows that when funding is available in the future, we will be poised and ready to enhance and grow our service.
In closing, Chair Williams thanked Rita Roberts-Turner and Monica Howse for coordinating the meeting at the Music City Convention Center.
VII. CEO’s Report: CEO Bland reported the following to the Board:
• He called the Board’s attention to pages 13 and 14 in the Committee packet whichlists significant upcoming procurements. He said this information would be includedin each month’s packet and asked that they take a look and let us know if they areaware of any suppliers of the particular goods and services that we should contact.
• With respect to Neighborhood Transit Centers, he said we are continuingnegotiations on property for the Clarksville Pike Center and are preparing anapplication for the highly competitive Build Act Program to fund construction. Lastweek, we received our environmental clearance from the United States Departmentof Transportation (USDOT) on this project, enabling us to expend Federal funds onthis project as available. We are also advancing design for the Hillsboro TransitCenter, in conjunction with the renovation of the school complex.
• He stated that earlier in the meeting the Board acted on service and fare proposalsto address our projected budget shortfall for FY2020, and he thanked them. He saidthey had likely followed significant discussion at Metro Council regarding Budget andFinance Committee Chair Tanaka Vercher’s alternate budget proposal. Although thisproposal failed by one vote, we were heartened by significant support by numerous
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council members to provide supplemental funding for transit. In particular, he wanted to thank Council Member Colby Sledge, who spearheaded this effort, and Members Anthony Davis, Erica Gilmore, Brett Withers, Freddie O’Connell and Burkley Allen, who all co-sponsored the supplemental funding for WeGo.
• WeGo hosted two candidate forums on transit for both incumbents and candidates for Metro Council. Turnout and discussion was very good, with about 25 attendees between the two sessions. He thanked Ms. Roberts-Turner and Eric Beyer for their preparation for these events.
• Mr. Bland stated that, earlier in the week, we hosted representatives from our Federal Transit Administration Region 4 Office for our regular quarterly review meeting. During their visit, we had the opportunity to take them on site tours of our Murfreesboro Road signal priority project, Nestor renovation project, Central renovation project, and our upcoming stop improvement project on Nolensville Pike. They were impressed with our progress and continue to be an excellent partner in advancing transit projects in Nashville.
• Our Nestor Renovation project is rapidly nearing completion and is turning out extremely well. He stated he would like to work with our Chair to incorporate a site tour into either our July or August Board meeting.
• This past month, we graduated our second Leadership Academy Class. About a dozen of our supervisory and middle-management staff completed six months of training and real-world problem solving, and we got to enjoy the fruits of their labor in presentation.
• Mr. Bland shared his appreciation to Vice Chair Miller for agreeing to be reappointed to another five-year term to the Nashville MTA Board. Metro Council acted on her appointment at the same meeting they adopted the FY2020 budget. Despite appearing before the Rules and Appointments Committee at the same time we were proposing significant service reductions and fare increases, the questions and demeanor of the committee made it clear how much respect she has with our Council members. She passed unanimously.
• Mr. Bland was pleased to represent both WeGo and the Tennessee Public Transportation Association (TPTA) at the retirement party of Arthur Bing, the long-serving Executive Director of the Clarksville Transit System. Mr. Bing has been a past chair of TPTA and an extremely capable and willing partner in our regional transit discussions. Mayor Pitts of Clarksville has asked Mr. Bland to serve on the search committee charged with finding a new Director for Clarksville Transit.
• RTA Items:
o RTA met with consultants from HDR who are studying potential short-, medium-, and long-term improvements to the Star with a particular focus on increasing the number of trips provided. They will be concluding their efforts by the end of summer, at which time we will review their findings with the RTA Board and corridor partners.
o Ten new commuter coaches will begin entering service over the next month on RTA’s commuter services operated by Gray Line. Notably, they will be sporting the new WeGo Public Transit paint scheme.
• Finally, Mr. Bland announced to the Board that effective July 1, Trey Walker was being promoted to Chief Engineer. Apart from continuing his excellent work in the design and execution of our construction projects, he will assume full responsibility for oversight of all WeGo Public Transit facilities, including our buildings, stops and
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shelters, and stations on the Star rail line. He will be reporting to me in this role, so he suggested both congratulations and sympathy were in order.
VIII. Other Business: There was no other business to come before the Board.
IX. Adjournment: The meeting was adjourned at 4:32 p.m.
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NASHVILLE METROPOLITAN TRANSIT AUTHORITY Board of Directors Meeting
July 25, 2019
I. Call to Order: The regular meeting of the Nashville Metropolitan Transit Authority (Nashville MTA) Board of Directors was held at WeGo Central, located at 400 Dr. Martin L. King Jr. Blvd., Nashville, TN 37219 on Thursday, July 25, 2019.
Present: Gail Carr Williams, Chair; Janet Miller, Vice Chair; Hannah Paramore Breen, Member; Glenn Farner, Member; Walter Searcy, Member; Secretary Margaret Behm; and Chief Executive Officer Stephen G. Bland. A quorum was established, and Chair Williams called the meeting to order at 2:15 p.m.
II. Approval of Minutes: Minutes of the June 25, 2019 board meeting will be deferred to the August board meeting.
III. Public Comments: Chair Williams opened the floor for public comments. The public was reminded that comments were limited to three minutes.
Darius Knight
Mr. Knight reported the following:
• He congratulated Chief Operating Officer India Birdsong on her new job promotion.
• He stated that he is still seeing the same previously reported issues with the 1800 and 1900 models. Also, the Gillig bus display signs are still not working properly. He asked that we look at finding another company that can fix the display signs.
• He noticed that the fare box on bus 77 didn’t work and that it was rigged with wires; and felt like several people didn’t pay that day.
• Over a period of three to four weeks, he noticed that a supervisor was advising customers that their bus was going to be late and they would have to wait over an hour for bus service.
• In the future, he would like for us to notify the customers well in advance of possible service reductions.
• He reported that several buses are operating without air or poor air condition.
John Bull
Mr. Bull reported the following:
• Drivers are doing better with announcing bus stops for the visually impaired.
• He noticed that two traffic lights have been installed close to Walmart on Nolensville Pike, and that’s where two fatalities took place.
• He suggested a neon vest for the those that might be visually impaired.
Peter O’Connor
Mr. O’Connor reported the following:
• We need longer bus hours and customer care hours.
• We need more bus stops in the airport area; currently there is only one bus stop.
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Angelique Johnson
Ms. Johnson reported the following:
• She thanked the board for listening to their public comments.
• She requested that WeGo Public Transit enforce bus drivers to announce all bus stops. Walter Searcy suggested that she let the bus driver know what stop it is that she needs to get off on.
• She asked the question how budget cuts would impact crosswalks and shelters.
Sheila Hanson
Ms. Hanson reported the following:
• She agreed that drivers need to announce the bus stops, especially for the hearing impaired.
• The elevator needs to be leveled out at WeGo Central.
• The incline, near the Haywood bus stop area needs to be flattened; it is not ADA accessible.
James Thomas
Mr. Thomas reported the following:
• He stated that the bus drivers need assistance with better bus detour routes.
• Shelby Street bus passed him by and didn’t pick him up.
• He likes the bus stop at Walmart.
Glen Allen Graham
Mr. Graham reported the following:
• There is a lack of inbound stops near 12th and Edgehill.
• Drivers are taking various routes for detours; drivers need consistent detour routes.
There were no other public comments to come before the board.
IV. Operations & Finance Committee Report: Committee Chair Searcy reported the following:
a. WeGo Star Train Shuttle Service Contract (M-A-19-022): The Nashville MTA
Board approved the renewal of a contract with the Regional Transportation Authority of Middle Tennessee (RTA) for connecting Davidson County bus services operating from Riverfront Station to West End Avenue. The Board also approved service cuts to Nashville MTA that included the cancellation of the Music City Circuit. The Circuit served Riverfront Station and was heavily utilized by train riders as a way to get from the train station to WeGo Central to catch other WeGo services.
Consequently, the RTA desires to enter into a contract with the Nashville MTA to continue the portion of the Circuit between Riverfront and WeGo Central to help get riders to their final destination. The continuation of this segment would require approximately five hours of shuttle service per weekday. In the contract’s initial year, service would begin on September 30, 2019 in conjunction with the Nashville MTA’s implementation of the service cuts and would expire on June 30, 2020.
Under this contract, the RTA would pay the Nashville MTA for up to five hours of daily service at a rate of $109.47 per hour, or an amount not to exceed $105,100,
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covering the 192 days of weekday transit service contained in the contract. This contract price is consistent with RTA contracts approved last month.
A fuel escalator clause will also be included in all new contracts to protect the Nashville MTA should the average fuel prices escalate above $2.25 per gallon. The clause stipulates that for every 25-cent increase in the monthly average per gallon cost of fuel, the hourly rate will increase $1.50 per hour for that month going forward. However, this will likely not be a factor since the Nashville MTA has hedged approximately 80% of projected diesel fuel consumption at a contract price of around $2.22 per gallon.
The Operations & Finance Committee recommended the Board to approve the new contract with RTA to continue the portion of the Music City Circuit between Riverfront Station and WeGo Central beginning September 30, 2019 through June 30, 2020 for a not-to-exceed amount of $105,100.
There was no further discussion. The vote of approval was unanimous.
V. New Initiatives and Community Engagement Committee Report: On behalf of the New Initiative and Community Engagement (NICE) Committee, Board Member Glenn Farner stated that there were no committee items to report at this time.
VI. Chair’s Report: Chair Williams began her comments by saying that she works with the best board ever. She thanked everyone for their hard work at last month’s board meeting. As a Board Chair, she thought that everyone did a great job, including the work that was done in the months preceding last month’s board meeting. She thanked everyone for their time, effort, thoughtfulness, and the work that everyone puts into doing the work that we get the grand opportunity to do for our community and Nashville. Chair Williams said the approved WeGo Star Train Shuttle Service Contract action item goes to show that the community comes together to support our ridership and supports our community in meaningful ways. Chair Williams stated that the public comments mean a lot and help to guide the work that is done by WeGo Public Transit. All public comments are appreciated and do matter. In closing, Chair Williams thanked COO India Birdsong for her service at WeGo Public Transit and congratulated her on her new job promotion as Chief Executive Officer for Greater Cleveland Regional Transit Authority. It is a testament to the hard work that she has done here.
VII. CEO’s Report: CEO Bland reported the following to the Board:
• Mr. Bland called everyone’s attention to pages 13 and 14 in the Committee packet which lists significant upcoming procurements. This information is in each month’s packet and members are encouraged to share this information with businesses.
• With respect to Neighborhood Transit Centers, there was media coverage of the Build Act application submitted to develop the Clarksville Pike Transit Center. The Development team put together an extremely strong application, but the Build Act program is extremely competitive, generally receiving $50 in applications for every $1 they have available. Even if not successful with this application, the material will be beneficial as other funding opportunities are pursued.
• Following last month’s Board action regarding service and fare levels, staff has been active preparing for the fare increase on August 2 and service changes on
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September 29. In terms of public engagement and communication, the focus for the next few weeks will be on communicating the fare changes. Once these have gone into effect, we will turn our attention to the service changes.
• The Nestor renovation project is substantially complete, and staff are in the process of moving into renovated spaces. There will be a tour of Nestor following our August meeting.
• Mr. Bland attended the Board Planning Workshop for the Tennessee Public Transportation Association (TPTA) in Clarksville this past month. The Legislative agenda of the Association or in the upcoming year will focus on building closer relationships with the senior leadership at TDOT, and their highway design side to promote greater integration of mass transit into TDOT projects.
• A meeting was held with the Advisory Committee for our Better Bus Service Design project. Planning will be developing service scenarios over the next month to begin taking to the public in October.
• In accordance with FTA regulations, staff is in the process of updating the Title VI program. Title VI is intended to ensure non-discrimination in the delivery of services, programs and projects. This program will be for public comment in August and will be brought to the Nashville MTA Board in September for adoption.
RTA Items:
▪ The RTA lost another Park & Ride lot, this time in Rutherford County. The lack of good Park & Rides is a significant barrier to growth in RTA service, and staff are currently working on a plan to develop better, permanent and purpose-built Park & Ride lots.
▪ The RTA is in the process of turning over 10 new Commuter buses to Gray Line for operation of RTA services. The first buses will hit the street – in WeGo colors – in August.
▪ The RTA received the final report from the State Comptroller’s Office relative to the RTA’s sunset legislation. The only significant issue that needs to be addressed is a better formalization of EasyRide Employer subsidy pass programs with employers. Sumner County Mayor Anthony Holt, who chairs the RTA’s Audit Committee, and I will be presenting at a Joint State Legislative Oversight Committee on August 21. The RTA’s enabling legislation will be taken up by the General Assembly in the next legislative session.
▪ Finally, Mr. Bland reminded the Board that India Birdsong has accepted a position as CEO for the Greater Cleveland Regional Transportation Authority in Ohio. India’s last day with us will be August 2. The Chief Operating Officer position has been posted. Mr. Bland thanked Ms. Birdsong and wished her luck in Cleveland.
VIII. Other Business:
a. Annual Review of Board Ethics & Conflict of Interest: Board Secretary Margaret Behm reviewed the Board Ethics and Conflict of Interest policy with the board members. All members are required to disclose conflicts of interest, and may be required to recuse themselves from a particular vote.
b. Election of MTA Board Officers (M-A-19-023):
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In accordance with the Metropolitan Charter, the Nashville MTA Board shall elect a Chair and Vice Chair annually. Currently, Gail Carr Williams and Janet Miller serve as the Chair and Vice Chair respectively for the Board.
Board Secretary Margaret Behm opened the floor for nomination of board officers. Walter Searcy made a motion to keep the same officers intact for another year. Hannah Paramore Breen seconded the motion and the motion was carried that Gail Carr Williams will remain as board chair and Janet Miller as Vice Chair.
There was no further discussion. The vote of approval was unanimous.
IX. Adjournment: The meeting was adjourned at 3:05 p.m.
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Nashville Metropolitan Transit Authority of Nashville & Davidson County, Tennessee
BACKGROUND: In September 2017, the Board approved the Nashville Metropolitan Transit Authority (Nashville MTA) to enter into a three-year contract with two one-year options for the purchase of up to 135 Champion Body-on-Chassis Vehicles under the procurement contract labeled #2015561. Concurrent with Nashville MTA’s efforts to operate within our fleet replacement plan, staff requests approval to order 19 replacement vehicles under the aforementioned Central States Bus Sales contract.
During the procurement evaluation process, several end-user departments (including Maintenance, Information Technology, Parts, Operations, Safety, and WeGo Access) re-evaluated the internal configuration of these vehicles to ensure optimal operating ease and safety for both operator and customers. Such items included, but were not limited to, revised seating arrangements, configuration of wheelchair restraints, and Trapeze software hardware and cabinetry install configuration. Due to these proposed adjustments, Nashville MTA will order one pilot bus to be produced and tested in-service for 30 days, in advance of order and assembly of the remaining 18 vans with Central States.
If approved, these vehicles will replace those vehicles within our fleet that have met their end of useful life and are no longer recommended for service. Considering the average lead time for production of this equipment, maintenance staff anticipates delivery of these 19 replacement vehicles during the 2nd quarter of 2020.
RECOMMENDATION:
The committee requests the Board to provide the Chief Executive Officer authority to approve the purchase of 19 replacement buses from Central States Bus Sales. The total value of this purchase is not to exceed $2,933,850 ($149,150 per van, in addition to spare replacement parts inventory costed at $100,000). The cost per vehicle includes all ancillary equipment such as on-board Wi-Fi technology, cameras, and full Trapeze software installation.
Funding sources to support this purchase will be comprised of $2,309,396 in FY2017 Metro Nashville Capital Spending Plan funds, $69,384 in State match dollars and $555,070 in Federal Section 5339 Bus and Bus Facilities funds.
Nashville Metropolitan Transit Authority of Nashville & Davidson County, Tennessee
Board Action Item
Item Number: M-A-19-025 Meeting Date: 08/22/19
Item Title: FY2020 Proposed Operating Budget
BACKGROUND: In the June 2019 Committee and Board meetings, a continuation budget was adopted to maintain the authorized spending levels at the FY2018-19 level until the Board could finalize service cuts and fare increases adopted to offset an $8.7 million budget deficit. The attached budget has incorporated the impact of the approved service cuts and fare increase along with an increase in additional federal capital reimbursement to balance the FY2020 proposed budget.
The overall proposed operating budget as compared to last year is projected to increase approximately $820,000, or less than 1%, to $85.1 million in FY 2020 from $84.3 million in the FY 2019 budget. This small increase net of the service cuts is largely reflective of inflationary increases in expenses along with several larger increases related to a 21.1% increase in fuel costs related to our fuel hedging contracts and health related expenses increasing approximately 9.0% as a result of our current health trends and actuarial analysis. We also had wage step increases related to our union contract and a 2.75% contractual wage increase resulting from our new collective bargaining agreement.
The following summary highlights the increases and decreases in revenues for this proposed budget compared to FY 2019:
Decrease in Fare & Contract Revenue, net ($484,800)
Increase in Non-Transportation Revenue $15,800
Increase in State Operating Revenue $73,600
Decrease in CMAQ and JARC ($1,728,400)
Additional Federal Reimbursements $2,944,400
Total Revenue Increase $820,600.00
➢ Over the last year, we have seen a decrease of approximately $1.2 million in budgeted passenger fares,
primarily as a result of a trend we are seeing from passengers utilizing more free transfers and an increase in the free homelessness program. Additionally, we have increased free circuit ridership related to folding in the former Route 29 Jefferson into the Blue Circuit route. We expect this trend to continue as rider habits change to maximize their benefits of WeGo’s fare structure implemented during FY2018. The decrease in fare revenue is partially offset by an approved fare increase, as well as some new contract revenue. The fare increase raises the one-ride fare from $1.70 to $2.00 which became effective August 2, 2019. All other fare media will be adjusted relative to the one-ride fare. The fare increase is expected to generate approximately $580,000 in net fare revenue. Contract revenues are also increasing as the result of additional service being paid for by the Regional Transportation Authority of Middle Tennessee (RTA) related to retaining a portion of the Music City Circuit route between Riverfront Station and WeGo Central that will be cancelled effective September 29, 2019 as a part of MTA’s approved service cuts.
➢ Other Non-Transportation Revenues are increasing primarily as the result of a contractual increase in our parking contract for WeGo Central that is managed by Premier Parking. These increases are partially off-
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set by a decrease in budgeted advertising revenue as a result of a decision to no longer allow fully wrapped buses in our advertising program for safety reasons.
➢ The increase in State operating revenues is based upon a confirmed award amount from the Tennessee Department of Transportation (TDOT) for FY2020.
➢ The decrease in Congestion Mitigation Air Quality (CMAQ) and Job Access Reverse Commute (JARC) is primarily due to TDOT electing not to award any CMAQ to MTA in the latest round of three-year CMAQ operating funds. We have historically been receiving this funding since 2012 to support bus service operations along West End Avenue (Routes 3 & 5) which was expanded in 2012. JARC funding is awarded annually by the Metropolitan Planning Organization. However, MTA is not guaranteed to receive any additional JARC awards for FY2020. JARC funding is used to support some services along the 10 Charlotte Pike, the 77 Thompson Lane Connector, and the 43 Hickory Hills.
➢ The anticipated increase in federal operating reimbursements is needed to offset decreases in other revenue sources. The increase is based upon an estimate of preventive maintenance and paratransit operating expenses eligible for reimbursement. Federal capital grant dollars are eligible to be converted into operating revenue dollars to reimburse preventive maintenance expenses. We have additional expenses eligible to be reimbursed through our capital grant funding. The balance of the remaining federal 5307 capital formula funds after the operating reimbursement will be utilized for capital purposes. Use of funds for this purpose will reduce the amount of funding available for capital projects.
The following summary highlights the increases and decreases in expenses for this proposed budget compared to FY 2019:
Labor & Fringes ($298,900)
Other Fringes, FICA, and Pension ($37,200)
Workers’ Comp ($46,900)
Health Insurance $855,400
Fuel $95,700
Security Services $93,500
Taxi Overflow/ Access on Demand Services $480,000
Other Services $350,900
Parts, Materials, and Supplies ($760,500)
Utilities $45,900
Liability and Property Insurance $63,700
Other ($21,000)
Total Expense Increase $820,600
➢ Labor and fringe related costs are decreasing as a result of the service cuts being implemented September
30, 2019. The service cut represent approximately 42,000 hours of service in FY20 and 57,000 hours on an annual basis. This will result in a reduction of approximately 27 driver positions and approximately six in maintenance, which would be accomplished through not filling current open positions. These decreases are partially offset by wage step increases for drivers as well as a 2.75% wage increase included in our current union contract, as well as some increases in budgeted overtime hours needed to cover service due to continued driver shortages. While the reduction in driver positions related to the service cuts improves the shortage issue, it does not completely solve the ongoing issue.
➢ The decreases in other fringe benefits, FICA, and pension expenses relate to the service reductions.
➢ The decrease in workers’ comp is primarily due to the service reductions, as well as actuarial calculations reflecting improved experience from a decrease in the number of and severity of workers’ comp claims over the last year.
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➢ An increase in health care coverage is anticipated due to increased medical claim costs, administrative costs, and actuarial results. The increase was partially offset by the reduction in employees related to the service reductions.
➢ Increases in fuel costs are the result of new diesel and gasoline fuel hedging contracts along with anticipated increases in the open market costs for fuel. We hedge approximately 80% of our diesel and 75% of our gasoline consumption. Diesel contract prices are increasing from an average of $1.82 per gallon this year to a new contractual diesel hedge price in FY2020 of $2.22 per gallon. Unleaded fuel hedge prices are also increasing from an average of $1.70 this year to an average contracted price in FY2020 of $1.98 per gallon. This increase is slightly offset by decreased consumption of fuel due to improved fuel economy in our new replacement buses and paratransit vans received during FY2019 and the service reductions.
➢ The increase in security services relates to more focus being put on our security presence at WeGo Central, our main transfer facility, which had seen an uptick in security incidents over the past two years, and the need for additional coverage during the school year as students transferred at the facility. There was also an increase in our contractual rates contained in our contract with Allied Universal who supplies our unarmed security services.
➢ The increase in Taxi Overflow and Access on Demand Services is primarily due to an increase in our taxi overflow services and projected increases in our Access on Demand services. Also included is a 2% inflationary increase related to existing third party provider contracts.
➢ The increase in Other Services is primarily due to entering into a new contract to maintain all camera equipment on our buses and paratransit vans, creating an increase of approximately $189,000. It also includes inflationary increases to software maintenance contracts amounting to approximately $131,000. These systems reflect new technologies being brought online to enhance customer experience, such as real-time information, on-board Wifi, etc.
➢ The decrease in parts maintenance relates to WeGo receiving 31 new buses and 19 paratransit vans during FY19 and receiving additional new buses and vans during FY20. The service reductions also contributed to the anticipated decrease in overall maintenance expense.
➢ The increase in utilities is primarily due to higher than anticipated natural gas usage in FY19 compared to what was budgeted and an increase in telecommunications expenses due to having a full year of Wifi on our fleet compared to a partial year in FY19.
➢ The increase in property and liability insurance is directly related to our revenue fleet, including new buses and paratransit vehicles. Property damage premiums are directly proportional to total asset values of our revenue fleet.
RECOMMENDATION:
The NICE Committee is requesting that the Board adopts the FY2020 budget as presented here.
