CDTA COMMITTEE AGENDA Strategic and Operational Planning Committee Thursday, March 22, 2018 Start Time - 12:00 PM; Anticipated End Time – 1:00 PM 110 Watervliet Avenue Committee Item Call to Order Responsibility Georgie Nugent Ascertain Quorum Georgie Nugent Agenda Approval Georgie Nugent Approve Minutes of February 22, 2018 Georgie Nugent Consent Agenda Items  Approve FY2019 Operating and Capital Plans Mike Collins Administrative Discussion Items  Season Two – Cycle! Update (Presentation) Jon Scherzer Governance/Policy Issue Discussion Items Executive Session None Next Meeting Date: April 19, 2018 Adjourn 1 ride" Capital District Transportation Authority Planning and Stakeholder Relations Committee Meeting Minutes – February 22, 2018 at Noon at the 110 Watervliet Avenue Office In Attendance: Dave Stackrow (Acting Chair), Georgie Nugent, Mark Schaeffer, Corey Bixby, Carm Basile, (CEO), Mike Collins (CSL), Amanda Avery, Jaime Watson, Sarah Matrose, Lance Zarcone, Mark Wos, Phil Parella, Fred Gilliam, Ross Farrell, Thomas Guggisberg, Jonathan Scherzer Meeting Purpose This was the regular monthly meeting of the Planning Committee. Consent Agenda Items None Administrative Discussion Items Capital Projects Update - Ross Farrell Ross provided an update on major capital projects. Lots going on as we continue to build relationships and advance BRT project components. FY2019 Budget Development - Mike Collins Mike provided an update on the FY2019 Budget. Some revenue and expense decision points remain, but we continue to fine tune the budget. Revenue projections, such as Mortgage Recording Tax, will likely be adjusted in March to reflect a positive year-long trend and a growing economy. We increased Federal Maintenance for operations to 80% of our allocation because the State’s Capital Plan provides more funding for bus purchases over the next two years. We do not anticipate having a budget surplus at the end of this year. The Governor’s budget recommends a 1% increase in state operating assistance (STOA). While this is good, we are advocating for increasing STOA to a higher level. Personnel expenses such as wage, health care and pension will increase by about 2.2%, which represents 72% of the overall budget. The Committee and staff had a good discussion about the future of health care and potential changes to our current system. We have invested heavily in technology over the past few years, and support services to manage these investments are increasing. There is good news in our fuel budget as price is reduced by $.65 cents per gallon resulting in a reduction of $900,000. Staff continues to fine tune assumptions, and we anticipate a balanced operating plan in March for the new fiscal year beginning on April 1, 2018. Adjournment and Next Meeting The next meeting of the Committee will be held at noon on March 22, 2018 at 110 Watervliet Avenue. Respectfully submitted by Michael P. Collins: _______________________________________ 3 Memorandum Date: March 22, 2018 To: Interim Chairwoman, Planning & Stakeholder Relations Committee Members, Planning & Stakeholder Relations Committee From: Mike Collins, Vice President of Finance and Administration Subject: FY2019 Operating and Capital Budget Recommendations Summary I have attached a draft of the FY2019 operating and capital plans that have been developed over the past several months. After a good deal of committee input and discussion, the budget plan is ready for final review and adoption. The operating plan is balanced at $86 million and it keeps spending growth at 1.9%. The five-year capital plan is a long-term vision of potential projects and procurements, but most years are not funded. The first year of the capital plan is funded at $21.6 million. Revenue Here are the highlights of what we have done over the past 30 days or so to balance the plan:  We expect a good year for Mortgage Recording Tax (MRT) based on positive economic forecasting and have increased the MRT line to $11.2 million.  Customer revenue has been a challenge with the transition to the Navigator card and although recent Universal Access contract renewals have been positive, we are budgeting a small decrease in revenue while the Navigator transition is completed.  We propose to increase the federal maintenance (5307) line by $1.5 million. This is possible because of the multiyear capital program provided by New York State. This increases the use of 5307 funding for operations from 72% to 81%. The state capital program gives us the flexibility to use federal funds for operating purposes. If the NYS capital program changes in the future (hopefully increase), we would reduce the amount of funding from 5307 for operations.  We propose to increase State Operating Assistance (STOA) from 1% (last month) to 2% based on what is currently in the Senate and Assembly bills. Both bills recommend more 4 than what we are proposing in this budget; if the final state budget includes additional STOA, we will revise the budget through committee and board actions. 5 Expenses Most of our expenses are absorbed by wages and benefits. We spend 72% of our budget on these items, most of which are collectively bargained. Some of the things we have done to balance the plan include:  We are proposing a 1% increase in wages due in part to the uncertainty of collective bargaining; we will also make several route efficiency modifications as part of our service planning work.  We are projecting a 6% increase to health care based on current and projected health care premium estimates. This is a little less than earlier estimates (a good thing). The committee has discussed this important employee benefit on several occasions and we are exploring options to reduce costs while maintaining a high-quality health care program.  We are projecting a 10% increase in Workers’ Compensation benefits due to the high number of Special Loss of Use awards issued by the Workers’ Compensation Board. We have little control over these awards and continue to be concerned that newer claims will be costlier as the weekly benefit continues to increase.  We are keeping increases to professional services, maintenance services, purchased transportation and parts the same as what the committee discussed at last month’s meeting. With some fine tuning we have been able to reduce our fuel expense by another $40,000. Capital Plan The FY2019 Capital Plan will keep our system and facilities in good shape. The spending plan is $21.6 million and it includes $9.2 million for buses. We will receive 12 Gillig buses, 2 NX coach buses and 6 STAR buses for our fleet. This also includes paying our annual lease payments obligations. Most of the fleet order is funded through the New York State capital program. The plan also includes a renovation to the operations department, resurfacing employee parking and visitor lots; the continued installation of the new CAD/AVL system; several small infrastructure/street amenity enhancements; and expanding our bike share program for Season 2. The five-year capital plan is attached; we must submit it to the state on an annual basis. It is important to note that this is a plan, and it is not expected to be a fully funded plan. The plan includes a variety of innovative ideas and projects; some that may be funded in the future and some that may not. 6 Recommendation It is recommended that the balanced FY2019 Operating and associated five-year Capital Plan be advanced by the committee to the full board for approval. Copy: Chief Executive Officer Senior Staff Director of Finance 7 Caoitei [isl?ctTra?ao?z?mAL?n?tv Mam 2_2, 2018 Bugatti: Hoposed vaenue FY2018 FY1119 them BJdgal: Change Edger Chengg Mortoaqe Tax 11. 000.000 250.000 11. 250.000 2. 27% I nterest Income 20, 000 - 20.000 0. 00% Customer Revenue 18, 280.000 (280.000) 18.000. 000 - 1.53% Adverti Si no 800, (D0 50.000 850. 000 6. 25% RRSand Fad ities Income 3, 501, 631 3.501.631 0. 00% Fri or Year Cam/over 500, 000 (500, 000) 100. 00% Other 88, 500 - 88. 500 0. 00% Federal Maintenance 10,901,000 1,500,000 12,401,000 13.76% State Operati nq Assistance 36, 436. 100 728, 722 37. 164. 822 2. 00% Northan Commuter Servi ce STOA 400,000 400,000 0.00% Countv Assistance 1,917,000 - 1.917.000 0. 00% Other Grants 651, 800 (150.000) 501. 800 01% Tote! Even?Ila 851mm IRE 8509:5753 1&7: Bldgatto Hanged Emerse FY2018 Brigitta FY1119 Bucket 03"? Bucket 03E Waqes 41,508,123 415,081 41,923,204 1.0% FIOA 3,026,361 30.264 3,056.65 1. 0% Health Bene?ts 10, 321. 150 619,269 10,940,419 6. 0% Workers' 2.093.659 200.000 2.293.659 9.6% Other Bene? ts 3.431, 287 37. 251 3.468. 538 1. 1% Professional Servi ces 2, 181, 674 334, 071 2.515.745 15.3% ateri al 5 and Sunni i es 1, 394, 010 59.000 1.453. 010 4. 2% Miscellaneous 446, 750 446, 750 0. 0% Maintenance Servi oes 2,478, 879 186,379 2, 665, 258 7. 5% Purchased Transportation 5. 301, 332 400, 000 5. 701. 332 7. 5% Utilities 961, 000 - 961,000 0. 0% Fuel 6.064.187 (942.593) 5.121.594 5% Parts TI res Oi 4, 258, 019 260,000 4. 518. 019 6 1% General Insurance 679.600 - 679,600 0.0% Ci ai ms 350, (D0 - 350. (DO 0. 0% 84196031 1598722 8602.73 18% Medium 0 Five-YearaiI-d Plan Math 15. 2318 Rims?e TIE Dept ?9 51?1?? 32 2&3 TOE 110W Operations Renovation System Improvement Fad ities Fad ities $703,013 $0 $0 $0 $0 $0 85W Call Center Renovation System I rmrovement Fad ities Fad ities $0 $100,000 $0 $0 $0 $100,030 110W Parki no Lot Resurfaan State of Good Repair Fad I ities Fad I ities $110,000 $0 $0 $0 $0 $0 85W Parki no Lot Resurfad no State of Good Repair Fad I ities Fad I ities $55,000 $0 $0 $0 $0 $0 DPF Cormressor State of Good Repair Fad ities Fad ities $0 $0 $0 $0 $0 $0 Automated Access Gate Schenectady System rrprovement Fad ities Security $0 $300,003 $0 $0 $0 $300,003 Troy Driver?s Lod