Transit Agency Status

Presented on January 20, 2012

2

LANta Overview

◦ Services

23 fixed routes, 10 specials, 67 peak buses

108 vans, 95 daily vehicle runs

Zone defined general public demand response; integrated with LANtaVan

3

Transit Agency Status LANta

FY2011 Financial Position

4

Current Financial Position(in 000s) FY2011

Current assets 14,056

Noncurrent assets 9,211

Capital assets, net 18,300

Total assets 41,567

Total liabilities 17,294

Net assets:

Invested in capital assets

18,300

Restricted in net assets 4,822

Unrestricted 1,151

Total net assets 24,273

50%

21%

29%

AssetsLiabilitiesNet Assets

5

Current Financial Position Current assets includes MATP receivable of

$229K – estimated collection date is March 2012

Current liabilities includes line of credit balance of $3.2M – available line is $6M at an interest rate of prime + 0.5%

All accounts payable are current Restricted net assets includes $4.8M of Act 44

Operating funding carryover Unrestricted net assets includes $688K

LANtaVan surplus

6

Current Financial PositionRevenues(in 000s)

FY2011

Passenger fares 5,544

Government fare assistance programs

6,996

Other operating revenues 529

Nonoperating revenues 17,709

Total revenues 30,778

18%

23%

2%

58%

Passenger fares

Government fare assistance programs

Other operating revenues

Nonoperating Revenues

7

Current Financial PositionOperating Expenses

(in 000s)FY2011

Wages 7,250

Fringes 6,664

Purchased transportation 10,284

Fuel 1,973

Insurance 463

Other expenses 3,298

Total operating expenses 29,932

24%

22%34%

7%

2% 11%

Wages

Fringes

Purchased transportation

Fuel

Insurance

Other

8

Current Financial PositionNet Assets(in 000s)

FY2011

Invested in capital assets 18,300

Restricted net assets

Act 44 carryover 4,791

Insurance reserves 31

Unrestricted net assets

LANtaVan surplus 688

Other 463

Total net assets 24,273

75%

20%

5%

Invested in capital assets

Restricted net assets

Unrestricted net assets

9

Transit Agency Status LANta

FY2011 Current Operations

10

Current organization chart is provided as Handout #1

There are no vacant positions New bus operator and maintenance

positions are planned as part of the implementation of Moving LANta Forward

Staffing Level/Org Chart

11

Contract Provisions

Collective bargaining agreement term is 12/15/10 to 12/14/12.* Non-union employees

Bus Operators Current Projected FY13

Starting wage $10.87 $11.20

Top wage $21.74 $22.40

Average wage $19.12 $19.70

Contract wage increase

3% 3%

Job Classification Number- Full Time Number-Part Time

Bus operators 132 0

Maintenance workers 24 0

Operations supervisors* 11 0

General/administrative* 14 3

Senior management* 4 0

12

Important Contract Provisions

Part-time employees are used in clerical positions only

Approximately 40% of bus operators are “split shift” drivers

Outsourcing report is provided as Handout #2

LANtaVan and LANtaFlex services are subcontracted through an RFP process

13

Healthcare Health plan overviews, including copayments and deductibles, are

provided as Handout #3 Coverage and contributions are reviewed as part of collective

bargaining All employees receive same coverage

LANta is currently self-insured for health coverage. Total FY11 costs, including stop-loss premium, were $3M.

From 2007 to 2011, costs increased 2% per year. LANta engages a consultant to review the estimated costs of self-

insurance versus premium based plan Employee contributions are 1% of gross wages based on a 40 hour

work week. Maximum contribution is $500 annually. Health plan covers employee, spouse and eligible dependent children Retirees and spouses are covered to age 65 if employee retires

between 62 and 65. No coverage for retirees after 65.

14

Pension LANta administers and contributes to two

defined benefit pension plans: the LANTA Union and LANta Non-Union Employees Pension Plans

Normal retirement age for both plans is 65 Early retirement under both plans is allowed

at age 62 with 20 years of service Participants in the Union plan make bi-weekly

contributions of 3.5% of gross wages Participants in the Non-Union plan make bi-

weekly contributions of 3.0% of gross wages

15

Pension

Plan descriptions and funding information is provided as Handout #4

Both plans are underfunded as a result of poor investment performance due to the current economic climate

The Union plan is 48% funded The Non-Union plan is 65% funded

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Pension

LANta contributes the Minimum Municipal Obligation (“MMO”) to each plan

MMO is calculated by an independent actuary based on the current statute

LANta does not take advantage of protections available under Act 44, choosing to fund 100% of the amounts required to fund the plans

17

Fuel

Current Cost per Gallon◦ Contract rate or market rate? Contract rate◦ Terms of contract are provided as Handout #5◦ Includes purchase of fuel for LANtaVan

Projected Cost per Gallon and Basis for Projection◦ Contract rate or market rate? Contract rate◦ It is anticipated that the current contract

terms/options will continue in future years

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Fixed Route Fares

Provide average fare:◦ Current Amount◦ Future Amount

Fare TypeDate of

Last Increase

Current

Amount

Date of Planned Increase

Amount After

Planned Increase

Base Fare 04/01/2007 $2.00 N/A N/A

Transfers $0.25 N/A N/A

Zone Fares N/A N/A N/A N/A

Multi-ride passesOne-DayDisabled One-

Day10-Ride31-DayAnnual

10/01/2011

10/01/200810/01/201110/01/201110/01/2011

$4.00

$1.00$15.00$55.00

$605.00

10/01/2013

N/A10/01/201210/01/201210/01/2012

$5.00

N/A$16.00$60.00

$660.00

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Shared Ride Fares Date of Last Fare Increase – 10/01/2008

Current ◦ Average fare - $22.15◦ LANta has sponsorship arrangements with the County

Area Agencies on Aging and MH/MR agencies

Planned Changes◦ Date of planned increase - 10/01/2013◦ Estimated average fare - $25.50◦ There are no planned changes to the existing

sponsorship arrangements

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Other Major Factors Producing Cost Increases Beyond Inflation

Factors Current Amount

Projected Future Amount

Explanation

Pension $907K $1,134K Costs are controlled by market factors

Workers’ Comp Insurance

$368K $561K Costs are controlled by experience

Increased service $750K $800K Costs are based on hourly costs and amount of service added

21

Other Major Factors Producing Cost Increases Beyond Inflation

Factors Current Amount

Projected Future Amount

Explanation

Fuel costs $1.9M ? Costs are controlled by market factors at time of contract

Easton Intermodal Center

N/A $100K New facility

Health costs $3.0M ? Costs are controlled by experience, market factors and regulations

22

Cost Savings InitiativesInitiative Current

CostPlanned Action and

Implementation DateProjecte

d Savings

Consolidation of LANtaVan services to one subcontractor

$9.5M Initial contract awarded in FY2007; extension awarded in FY2010

$8M over contract term

Wage freeze (salaried employees)

N/A Implemented for FY2010 $30K

SAFTI $1.4M Aggressive defense of claims keeps premiums lower

$500K/Year

Printed timetables $100K Internalized art work $10K/Year

Paratransit contract extension

$9M Extension resulted in lower costs in year 5

$100K

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Cost Savings InitiativesInitiative Current

CostPlanned Action and

Implementation Date

Projected Savings

ADA certification program

$2M In-person certification will result in less paratransit use

$300K/ Year

Energy audit $100K Resulted in suggestions for increasing efficiency

$10K/year

Hybrid buses $2.5M Resulted in better fuel efficiency, less maintenance

$10K/year in fuel and $150K in maintenance

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Revenue Enhancement Initiatives

Initiative Current Revenue

Planned Action and Implementation Date

Projected

Revenues

New revenue vehicle and shelter advertising program

$250K New vendor selected in FY2011

$200K additional per year

Raising average fare N/A Implemented for FY2010 to lower discount on fare pass media – See Handout #6

$100K per year

Private/public partnerships

N/A Implemented in FY2012 – example: Amazon contract

$100K per year

Grants $16M Aggressively pursue

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Quality Control/ProductivityInitiative Cost Planned Action and

Implementation DateProjected Benefit

Advanced Transit Management System

$2M ATMS project fully operational – includes APC, AVL and integrated operating systems (farebox, auto-announcement system, cameras)

Data currently being used to assist in adding/removing services

ADA Certification $300K/Year

October 17, 2011 – in-person assessments for ADA- and MATP-sponsored consumers

$300K/per year

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Quality Control/ProductivityInitiative Cost Planned Action and

Implementation DateProjected Benefit

Computer Aided Scheduling

N/A – part of ATMS

Spring 2012 – being tested now

Results in more efficient schedules

Flex Service $25K Implemented in August 2011

Results in more efficient delivery of service

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Transit Agency Status LANta

FY2011 Service Statistics/ Trends

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Fixed Route Service Statistics/ Trends(in 000s)

Describe Any Proposed Changes

Fixed Route FY 2010-11

FY 2011-12

FY 2012-13

FY 2013-14

FY 2014-15

Rev. Veh. Miles 2,719 2,926 3,066 3,066 3,066

Rev. Veh. Hours 211 224 235 235 235

Passenger Trips 5,600 5,782-5,963

5,924- 6,248

5,983- 6,435

6,043- 6,628

ACT 44 PERFORMANCE MEASURES

Pass. Trips/Hour 26.5 26.6 26.6 27.4 28.2

Op. Cost/Hour $88.97 $89.48 $91.15 $93.89 $96.71

Op. Rev./Hour $22.16 $20.88 $20.69 $21.50 $21.93

Op. Cost/Trip $3.35 $3.36 $3.43 $3.43 $3.43

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Fixed Route Ridership Trend

1997 2003 2006 20103,000,000

3,500,000

4,000,000

4,500,000

5,000,000

5,500,000

6,000,000

140,000

160,000

180,000

200,000

220,000

240,000

260,000

280,000

Ridership

Vehicle Hours

Year

Annual P

assenger

Tri

ps

Annual V

ehic

le H

ours

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Shared Ride Statistics/Trends (in 000s)

Shared-Ride FY 2010-11

FY 2011-12

FY 2012-13

FY 2013-14

FY 2014-15

Total Veh. Miles

4,885 4,605 4,743 4,885 5,032

Cost per Mile $1.95 $2.07 $2.07 $2.07 $2.07

Total Veh. Hours

193 184 189 195 201

Cost per Hour $47.77 $51.77 $51.91 $51.82 $51.79

Total Pass. Trips

433 434 434 434 434

Cost per Trip $21.33 $21.95 $22.61 $23.28 $23.98

Rev. per Trip $22.42 21.25 $21.65 $22.58 $24.44

Trips per Hour 2.24 2.36 2.30 2.23 2.16

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Transit Agency Status LANta

FY2011 Funding Statistics/ Trends

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Fixed Route Funding(in 000s)

FY 2010-

11

FY 2011-

12

FY 2012-

13

FY 2013-

14

FY 2014-

15

Total Operating Expenses 18,773 20,078 24,430 22,073 22,735

Total Operating Revenue 4,761 4,676 4,864 5,054 5,155

Total Operating Deficit 14,012 15,402 16,566 17.019 17,580

Subsidies:

Federal 5,040 4,925 4,930 4,930 4,930

State 8,292 9,763 10,886 11,301 11,823

Local 680 714 750 788 827

Total Funding 14,012 15,402 16,566 17,019 17,580

Balance (Cumulative) $4,800 $2,800 $841 $100 $0

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Shared Ride Funding(in 000s)

FY 2010-

11

FY 2011-

12

FY 2012-

13

FY 2013-

14

FY 2014-

15

Operating Expense 10,805 11,295 11,634 11,983 12,342

Passenger Revenue 1,302 1,188 1,412 1,384 1,385

Lottery 2,583 2,794 2,794 3,213 3,213

MATP 4,291 3,857 3,972 4,414 4,546

Other (Includes ADA charges)

2,812 3,152 2,859 3,278 3,395

Balance (Cumulative) 688 384 (123) 184 381

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Transit Agency Status LANta

FY2011 Other Information/ Assumptions

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Moving LANta Forward◦ 12 year strategic plan; adopted in 2010◦ Undertaken to address:

Rapid population growth and development Significant growth in fixed route ridership Prioritize use of Act 44 funding

◦ Plan includes: Service Plan Marketing Plan Land Use Outreach Strategy

Fixed Route Service Strategic Plan

36

MLF Service Plan identified three levels of expansion:

Fixed Route Service Strategic Plan

LevelChange from 2010

Target YearRevenue Hours % Change Peak

Vehicles

Short 22,000 11.0 4 2014

Intermediate 64,000 33.0 8 2020

Long 214,000 119.0 26With

available funding

37

Fixed Route Service Strategic Plan First implementation steps with August

2011 restructure◦ Schedule simplification◦ New direct connections◦ Created system of core routes◦ New route nomenclature

Three digit designation Provides indication of level of service

◦ Running time issues addressed◦Structure to guide enhancements

38

Fixed Route Service Strategic Plan Close to reaching Short Term plan levels

◦ 2011 changes added 4% to annual rev hours◦ Another 4% budgeted for ‘12-’13

Organization’s goal is to reach Intermediate Plan levels◦ Brings LANta to avg. rev hrs/capita for peer

systems

39

Fixed Route Service Strategic Plan

0.00

0.25

0.50

0.75

1.00

TulsaRaleigh

Birmingham

Akron

Omaha

Lehigh Valley

Albuquerque

Grand Rapids

Springfield

Fresno

Albany

0.00

0.25

0.50

0.75

1.00

TulsaRaleigh

Lehigh Valley

Birmingham

Akron

Omaha

Albuquerque

Grand Rapids

Springfield

Fresno

Albany

Revenue Hours per Capita2010 Service Levels

Revenue Hours per CapitaIntermediate Term Plan

40

Fixed Route Service Strategic Plan Land Use Outreach – Expansion must

be supported through land use decisions◦ Municipal Planning Commission presentations◦ HUD Sustainable Communities grant

41

Fixed Route Service Improvement Priorities Continued frequency/span

enhancements on 100’s routes – create a core system to:◦ Be a feasible transportation alternative for more

residents◦ Create target corridors for development,

economic incentives, specialty zoning

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Fixed Route Service Improvement Priorities

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Fixed Route Service Improvement Priorities 100’s routes enhancements

◦ August 2011 restructure addressed many span issues; minor enhancements still needed

◦ Focus will be on frequency Goal: 15 min peak; 30 min off-peak frequencies

◦ Trip time and frequency enhancements through new Enhanced Bus models Enhanced Bus/BRT Study - underway

44

Fixed Route Service Improvement Priorities Address demand resulting from

employment growth and development in:◦ Western Lehigh County (Route 100 corridor)◦ Central Northampton County (Route 33

corridor)

45

Western Lehigh County – Service Issues

Recently rezoned Jaindl property:Build out plans call for 4 million SF – Warehousing450,000 SF – Retail Center700 residential units

Hamilton Boulevard:Expanding retail corridor.PCTI study

Lehigh Valley West: Expanding industrial park; Primarily warehousing – fastest growing industry in Lehigh Valley

46

Route 33 Corridor Service Issues

Major mixed use development

New St. Luke’s Hospital Anderson CampusMajor expansion plans“Mayo Clinic of the East”

Major mixed use development

LVIP VI Expanding industrial park

Proposed new interchange:Major mixed used development planned

Route 248/Nazareth RdMajor retail corridor

Route 33 Park & RideTrans-Bridge service

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Rt. 100/Rt. 33 Service Needs

Need for expanded service hours to industrial park areas◦ Revenue guarantee partnerships a potential

model Need for expanded service to medical

complex Expanded fixed route service on

Hamilton Blvd, Nazareth Rd/Uhler Rd Potential for expanded use of LANtaFlex

48

Projected Impacts of Intermediate Term Plan:

Fixed Route Service Strategic Plan

Item Net Impact by 2020

Operators 40

Maintenance Employees 5

G&A Employees 2-3

Peak Vehicles 8

Fleet Vehicles 10

Revenue Hours 64,000

Revenue Miles 800,000

Annual Passenger Trips 902,000 – 1,800,000

49

Improvements will be targeted to priorities Enhancements will be identified through a

planning process Performance will be continually monitored

to maintain target productivity levels◦ ATMS data will be instrumental in service

monitoring

Fixed Route Service Strategic Plan

50

Transit Agency Status LANta

Capital Status Review

51

Capital Status ReviewCapital Assets

(in 000s, Net of Accumulated Depreciation)

FY2011

Land 150

Buildings 3,816

Revenue vehicles 11,264

Service vehicles 155

Shop equipment 189

Furniture/office equipment 1,643

Other revenue equipment 1,085

Total capital assets 18,300

1%

21%

62%

1%

1%

9%

6%

Land

Buildings

Revenue vehicles

Service vehicles

Shop equipment

Furniture/office equipment

Other revenue equipment

52

Capital Status Review

Current Fixed-Route Projects◦ Purchase 20 hybrid buses◦ Allentown maintenance facility◦ Easton Intermodal Center◦ Shelter/signs program

Current Shared Ride Projects◦ Purchase 20 cut-away buses

53

Capital Status Review

Short-term Future Fixed-Route Projects◦ Replacement of 60 heavy-duty buses with

hybrid buses◦ Purchase of hybrid buses for service expansion◦ Development of service hubs

Short-term Future Shared Ride Projects◦ Replacement of 80 cut-away buses (existing

fleet)◦ Replacement of paratransit scheduling software