1

Current Financial Position

Current Operations

Service Statistics/Trends

Funding Statistics/Trends

Other Information/Assumptions

Capital Status Review

Last update: January 27, 2012

Transportation Status - FY 2011-12

2

Transportation - Current Financial Position:

Reserves/Retained Earnings

Source Balance

Lottery

MATP

MH/MR

Area Agency on Aging

Other State $

Other Local $

Total Reserves (Deficit)

$ (862,198)

3

Transportation - Current Financial Position:

Level of Short-Term Debt/Loans—Identify each line of credit (excludes long-term bond financing)

Name of Financial

Institution

Amount of Available

Credit

Interest Rate

Current Credit in Use

Woodlands Bank $0 6.5% $1,065,000

4

Transportation - Current Financial Position:

Accounts Payable – Past due 90 days and over

Accounts Receivable – Past due 90 days and over

VendorAmount Past

DueEstimated Pay

Date

N/A

Program/Agency

Amount Past Due

Date Requisition

ed

Estimated Pay Date

N/A

5

Transportation - Current Operations:

Staffing LevelContract ProvisionsHealthcarePensionFuelFaresOther major factors producing cost increases

above inflationCost Savings Initiatives

6

Transportation - Staffing Level/Org Chart:

7

Transportation - Labor Provisions:No Union Contract

Drivers Current 2012-13

Starting wage $8.47 (non-CDL), $10.85 (CDL)

$8.89 (non-CDL), $11.39 (CDL)

Top wage $17.69 (27 year employee) $18.57

Average wage $11.38 $11.95Job Classificatio

nNumber- Full Time Number-Part Time

Drivers 29 - 21 non-CDL and 8 CDL qualified 0

Mechanics 0 0

Dispatchers 1 (others cross-trained) 0

Clerical7 - 2 Schedulers, 4 Clerks, and 1 Customer Services Supervisor

2 – Senior Community Service Employment Program (vacant) and AmeriCorp member

Other Positions 1 Fleet Manager (vacant) 0

8

Transportation - Important Labor Provisions:

Use of part-time employees Senior Community Service Employment Program (Title V)

(currently vacant) and, AmeriCorp Member

Number/percent of “split shift” drivers During 24/7/365 coverage, on occasion would split shift a Driver

for very late in the evening or early in the morning trip. Not needed so far with new operating hours

Overtime During the bi-week pay period of 12/31/11 to 1/13/12 a total of

11.50 hours of overtime was paid out. During this time period there were 3 Drivers out sick/injured

Outsourcing Most vehicle maintenance done through one vendor. At no cost, a

paved and lighted parking lot at the garage is used for all vehicles and it is conveniently located to access both counties

9

Transportation - Healthcare:

Describe any proposed changes and the estimated financial impacts: N/A at this point

Non-Union

Basic Coverage

Current$688. monthly premium –Doctor Visits-Preventative Services –Emergency Services-Inpatient/Outpatient-Prescription Drugs

FY 2012-13

$791.(estimated 15% increase)

Employee Contributions

Current $44-$114 per month

FY 2012-13

$51-$131 per month

Co-PaymentCurrent

$15/$30 Primary/Specialist- $75.Emergency Room/Outpatient Imaging. Prescription-Retail Tier $0/$20/$40/$60

FY 2012-13

Unknown at this time

10

Transportation - Pension:

Non-Union

Employer Contributions

Current-403b Plan 5% of Annual Pay

FY 2012-13-403b Plan

3% to 5% of Annual Pay

Minimum Age to Qualify for Retirement

Current N/A

FY 2012-13 N/A

Minimum Number of Years to Qualify for

Retirement

Current N/A

FY 2012-13 N/A

Minimum Number of Years to be Vested

Current N/A

FY 2012-13 N/A

11

Transportation - Pension:

Describe any proposed changes and the estimated financial impacts - Proposed change on Employee Contribution from 5% with Employer Match of 5% to Employee Contribution can be 3% to 5% with Employer Match from 3% to 5% based on Employee election-Employer Match not to exceed 5%

Provide a status of the degree to which the pension funding is funded. If not fully funded please provide your strategy to fully fund pension – N/A

12

Transportation - Fuel:

Current Cost per GallonContract rate or market rate? Market rate – Currently

averaging approximately 3.599 per gallon

Projected Cost per Gallon and Basis for ProjectionContract rate or market rate? Possibly contract rate at River

Valley Transit (RVT) fueling station for at least some of agency vehicles

Terms of contract: Unknown at this time – working with RVT on possibilities

OtherWould like to explore Compressed Natural Gas (CNG)

vehicle purchase opportunities due to recent local CNG fueling station opening in Williamsport in 2012

13

Transportation - Shared Ride Fares: Date of Last Fare Increase: May 1, 2011

Current - $16.60 per one-way trip throughout the bi-county area; between $37 and $61 to Geisinger Medical Center (GMC), Danville, PA Average fare : $17.55 (Taken from last sample week) Sponsorship arrangements – STEP, Area Agency on Aging and North Central Sight Services

Planned Changes Date of planned increase – Unknown at this time Estimated average fare – Unknown at this time Sponsorship arrangements – additional MATP funding cuts?

Describe Fare Policy 203 Shared-Ride is $2.50 customer co-pay per one-way trip STEP, Area Agency on Aging sponsors customers over the age of 60 for certain trip types

(67% of the 15% co-pay (65 and over) or 95% for 60-64 years of age) equates to an $.85 co-pay

PwD/ADA customers are required to pay $4.00 for each on way trip MA customers are currently provided transportation at no charge. Effective April 1, 2012,

MATP will reimburse STEP $2.00 less per trip with the assumption that customers will pay a $2.00 co-pay. If co-pay is not paid transportation is supposedly still required to be provided.

GMC trips range from a $5.55 to $18.50 co-pay depending upon sponsorship and number of customers riding on that day

14

Transportation - Other Major Factors Producing Cost Increases Beyond Inflation:

Factors Current Amount

Projected Future Amount

Explanation

Employee Recruitment and Retention

Lost 7 Drivers and 1 Fleet Manager in 2011 = more cost for advertising, training, and overtime for Driver shortage

?

Recruitment and retention have been extremely difficult for many reasons. Lately, the highly competitive nature of the Marsellus Shale gas industry has taken many Drivers away from STEP.

Fuel Price Approximately 3.599 per gallon ? Indicators point to possible

increases beyond inflation.

Healthcare Costs

30% increased cost to the agency each of the last three years

15% increase per year

Huge increase in the cost to the agency over the last three years and the expectation for continued higher costs

15

Transportation - Cost Savings Initiatives:

InitiativeCurre

nt Cost

Planned Action and

Implementation Date

Projected Savings

Reduction in Service Level ?

January 1, 2012 – Reduced service from 24/7/365 to Monday thru Friday, 6:00am to 6:00pm not including STEP observed holidays

According to the consultant, a possible savings of over $75,000 per year

Implementation of higher technology

$175,000?

Waiting for success of pilots ?

Daily monitoring of Driver hours worked

?

On going – to best of ability, zero out hours at end of the week to minimize overtime

FY 2011-2012 - along with reduction in service level and Driver attrition, a projected saving of over $200,000.

16

Transportation - Cost Savings Initiatives:

InitiativeCurre

nt Cost

Planned Action and Implementation Date

Projected Savings

Unfilled Vacancies ? Several Driver and 1 Fleet

Manager positions

FY 2011-2012 - along with reduction in service level and Driver attrition, a projected saving of over $200,000.

Bulk Fueling ? Working with River Valley Transit to purchase gas there ?

Compressed Natural Gas (CNG) Vehicles

? Would like to explore options to purchase CNG vehicles ?

Less on-call coverage

$10,400 per year

New service level decreased need for around the clock on-call coverage

$7,800 per year

Others?

17

Transportation - Shared Ride Funding:

FY 2010-11

FY 2011-12

FY 2012-13

FY 2013-14

FY 2014-15

Operating Expense

$2,688,562

$2,315,881

$2,402,873

$2,566,255

$2,742,715

Passenger Revenue $276,031 $264,59

7 $239,460 $239,460 $239,460

Lottery $704,690 $663,275 $600,264 $600,264 $600,264

MATP $1,036,029

$743,102 $672,507 $627,507 $627,507

Other $595,099 $472,686 $419,780 $419,780 $419,780

Balance (Deficit)

($76,713)

($172,221)

($470,862)

($634,244)

($810,704)

18

Transportation - Shared Ride Statistics/Trends:

Shared-RideFY

2010-11

FY 2011-12

FY 2012-

13

FY 2013-14

FY 2014-15

Total Vehicle Miles

1,850,028

1,577,368

1,427,518

1,427,518

1,427,518

Cost per Mile $1.45 $1.47 $1.68 $1.79 $1.92

Total Vehicle Hours 37,970 31,090 28,137 28,137 28,137

Cost per Hour $70.80 $74.49 $85.40 $91.20 $97.47

Total Passenger Trips 141,408 115,000 104,000 104,000 104,000

Cost per Trip $19.01 $20.13 $23.10 $24.64 $26.37

Revenue per Trip $17.76 $18.64 $18.58 $18.58 $18.58

Trips per Hour 3.72 3.69 3.69 3.69 3.69

19

Transportation - Other Information/Assumptions:

This slide intentionally left blank

20

Transportation - Capital Status Review:

21

Transportation - Capital Status Review:

22

Transportation - Capital Status Review:

23

Transportation - Capital Status Review:

24

Transportation - Capital Status Review: