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Centre Area Transportation Authority Hugh Mose, General Manager Louwana Oliva, Assistant General Manager Judi Minor, Director of Administration Kimberly Fragola, Assistant Director of Administration Greg Kausch, Senior Transportation Planner (CRPA) 1

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Who We Are CATABUS Community Service and Campus Service CATARIDE Shared Ride and ADA Paratransit CATACOMMUTE Carpools, Vanpools, Guaranteed Ride Home 2

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Transit Agency Status FY 2011-12 Current Financial Position Current Operations Service Statistics/Trends Funding Statistics/Trends Other Information/Assumptions Capital Status Review 3

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Current Financial Position: 4 CATA has no state funding in reserve. Unused federal formula funding is annually carried forward as a type of reserve. Increased expenses for fuel, health insurance, and paratransit service lead to our anticipating no unused federal formula from FY 2011-12 to be carried forward to FY 2012-13.

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Current Financial Position: Level of Short-Term Debt/LoansIdentify each line of credit (excludes long-term bond financing) Name of Financial Institution Amount of Available Credit Interest RateCurrent Credit in Use Citizens Bank Line of Credit $350,000.25% of unused balance, based on the number of days in the month / current rate for used balance $0 5

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Current Financial Position: Accounts Payable Past due 90 days and over Accounts Receivable Past due 90 days and over VendorAmount Past DueEstimated Pay Date None Program/AgencyAmount Past Due Date Requisitioned Estimated Pay Date None 6

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Current Operations: Staffing Level Contract Provisions Healthcare Retirement Plan 401(a) Fuel Fares Other major factors producing cost increases above inflation Cost Savings Initiatives 7

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Staffing Level/Org Chart 8

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Contract Provisions Union contract expired 10/31/2011 and is currently being renegotiated. DriversCurrent2012-13 Starting wage$16/hourUnder negotiation Top wage$20/hourUnder negotiation Average wage$19.87/hourUnder negotiation Contract wage increase4.9% on June 1Under negotiation Job ClassificationNumber- Full TimeNumber-Part Time Drivers1010 Mechanics/Maintenance130 9

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Important Contract Provisions Use of part-time employees No part-time bargaining unit positions Number/percent of split shift drivers Approximately 43% of drivers (50 bids are not, 33 bids are average 10 of 18 on-call drivers as split shift per day) Overtime 15,511.10 hours in FY 2010-11, or $145,649.23 5% service reduction this year will mean lower figures for FY 2011-12 Outsourcing ADA Paratransit and Shared Ride Handy Delivery, Inc. Paid breaks between 20 minutes to one hour 10

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Healthcare Management attempted to implement a less expensive health insurance plan last year, but the bargaining union voted down the proposal. Management again proposed changing to a less expensive health insurance plan during the current labor contract negotiations, but the union appears to be more interested in maintaining the current health care coverage than they are in increased wages. Beginning 1/1/2012, non-represented employees will be covered by a less expensive health insurance plan. The exact cost savings associated with this change are not yet known. UnionNon-Union Basic Coverage 2011$1,599,776(Included with Union) 2012$1,776,600(Included with Union) Employee Contributions 2011$288,002(Included with Union) 2012$367,781(Included with Union) Cost to CATA 2011$1,311,774(Included with Union) 2012$1,497,923(Included with Union) 11

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Retirement Plan 401(a) UnionNon-Union Employee Contributions Current4% FY 2012-134% Minimum Age to Qualify for Retirement Current59.5 FY 2012-1359.5 Minimum Number of Years to be Vested Current77 FY 2012-1377 12

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Retirement Plan 401(a) CATA offers a deferred compensation plan to which both the employer and employee make contributions. No additional funding is required for this type of plan. There are no current plans for changing the 401(a) employee retirement plan. 13

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Fuel: Current Cost per Mcf of CNG Average for October: $5.97/Mcf equivalent of $0.80/gallon for diesel fuel The gas tax credit, which is applicable through 12/31/2011, further drives this cost down to an equivalent of $0.26/gallon for diesel fuel Projected Cost per Mcf and Basis for Projection CNG has already been purchased for 11/1/2011 to 6/30/2012 at an average cost per Mcf of $6.00 equivalent of $0.80/gallon for diesel fuel. (The gas tax credit will be applicable to the November and December purchases only, making the price for those months the equivalent of $0.26/gallon for diesel fuel.) The current contract with GasMark ends 9/30/2012. An RFP for a new CNG contract is to be issued over the summer of 2012. 14

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Fixed Route Fares: Average fare: $0.79 CATAs goal is to achieve a 50% farebox recovery ratio. Contracted rates for service are renegotiated annually with Penn State and apartment complexes regardless of whether or not the cash fare rate is raised. Fare Type Date of Last Increase Current Amount Date of Planned Increase Amount After Planned Increase Base Fare 8/1/2010$1.50N/A Transfers Free N/A Zone Fares N/A Tokens 8/1/2010$1.50N/A OnePass 1 month 8/1/2011$59.00N/A OnePass 4 months 8/1/2011$229.00N/A 15

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ADA Paratransit, Shared Ride, and Vanpool Fares: ADA paratransit fares: $3 (double the current cash fare rate) Shared ride fares: $2 (15% of the general public fare of $13.35) The per-passenger contract rate paid for ADA paratransit and shared ride service has increased considerably since July 2011, with an additional increase coming in March 2012. As a result, we are considering the possibility of applying for a shared ride fare increase sometime this fiscal year. Vanpool fares: Operating cost from miles traveled (gas and maintenance), plus a base cost to cover insurance, parking, and depreciation. Divided among the passengers for each vanpool. Re-calculated and adjusted quarterly to reflect changes in costs. Sponsorship arrangements: None for ADA paratransit and shared ride services. Penn State provides financial support for vanpool service. 16

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Other Major Factors Producing Cost Increases Beyond Inflation: FactorsExplanation Health InsuranceDue to a poor claims history, CATA experiences an annual rate increase of at least 15%. The increase to take effect on 1/1/2012, will be 17.6%, which represents roughly $265,000. Paratransit ContractRate increases paid to the purchased transportation provider in FY 2011- 12 are expected to increase expenditures over FY 2011-12 by approximately $200,000. End of Gas Tax CreditThe credit for FY 2010-11 totaled $460,820 (this amount covered 12 months of FY 2010-11 and the last six months of FY 2009-10, paid retroactively upon renewal of the authorizing legislation). The credit will expire 12/31/2011, increasing fuel expense in future years by approximately $330,000 a year.. Driver WagesDriver wage increases over the past three years were at a rate of 4.9%. The contract is currently being renegotiated, with the outcome on driver wages yet to be determined. Revenue Vehicle Maintenance (aging fleet) With an average age of 13 years, CATAs fleet is very costly to maintain. 17 * The uncertainty of future funding at both the state and federal levels hinders CATAs ability to mitigate cost increases even at inflation, let alone these examples of cost increases beyond inflation.

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Cost Savings Initiatives: InitiativePlanned Action and Implementation Date COST SAVINGS: Replacement BusesCATA expects to receive a total of 27 new buses throughout the first half of 2012. Though the amount of cost savings is yet to be determined, these new buses are expected to alleviate some of the high revenue vehicle maintenance costs of the older fleet that we are currently running. Enhanced Safety ProgramThis program is expected to generate a $100,000 this year through a refund of Workers Compensation premiums. Health InsuranceShould there be a union vote at some point in the future in favor of altering the current health insurance plan, cost savings, or mitigation of cost increases, would result. Non-represented employees will begin on 1/1/2012 to utilize health insurance coverage provided under a less expensive plan. ENHANCED REVENUES: Apartments Billing MethodApartment complexes are being transferred to a per-rider billing basis, which is anticipated to generate roughly $100,000 in additional revenue in the first year. ONGOING ACTIVITY: Service ReductionsGrant funding is uncertain. Assuming that grants remain stable, expenses increased by inflation result in a bigger deficit, and service must be reduced to operate within our means. FUTURE POSSIBILITIES: New Maintenance BuildingCATA is currently in the process of developing plans for an expanded bus storage and maintenance facility in order to apply for grants as a shovel ready project. When grant funding is obtained and the new facility is built, greater efficiencies will result in cost savings. Fare IncreasesCash, token, and pass prices will be increased as needed. Apartment contract rates, which account for approximately half of CATAs passenger revenue receipts, are increased annually. 18

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Fixed Route Funding FY 2010-11 (Actual) FY 2011-12 (Budgeted) Total Operating Expenses$11,532,020.57$12,291,560.00 Total Operating Revenue$5,914,435.57$6,200,545.00 Total Operating Deficit$5,617,585.00$6,091,015.00 Subsidies: Federal$1,923,678.00$2,274,905.00 State$3,253,123.00$3,353,287.00 Local$440,784.00$462,823.00 Total Funding$5,617,585.00$6,091,015.00 19

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5 Year Projection Federal and State Subsidies Status Quo 20

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5 Year Projection State Subsidy Status Quo, 30% Federal Subsidy Decrease 21

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5 Year Projection 20% State Subsidy Increase, Federal Subsidy Status Quo 22

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5 Year Projection 20% State Subsidy Increase, 30% Federal Subsidy Decrease 23

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Fixed Route Service Statistics/Trends: 24 All calculations assume current funding levels, which will necessitate a service cut of at least 5% per year.

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Shared Ride Funding 25 Calculations assume a 5% per year increase in Passenger Revenue and Lottery, with a 10% per year increase in Operating Expense. The ADA portion of this service is not included in the figures above. For FY 2010-11, ADA Operating Expense was $247,799. ADA Passenger Revenue was $44,121, leaving a balance of $203,678 as the cost to CATA. ADA & Shared Ride ridership together are slightly declining. The process for a Paratransit RFP is currently underway.

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Shared Ride Statistics/Trends 26 All calculations assume current funding levels and a 5% increase in ridership (also reflected in Revenues), with a 10% increase in Expenditures.

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CATACOMMUTE Funding 27 Calculations assume 10% growth in the CATACommute program (reflected in Passenger Revenue), with a 15% increase in Operating Expense.

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CATACOMMUTE Statistics/Trends 28 Penn State provides annual financial support for the CATACOMMUTE program. Calculations assume 10% growth in the CATACommute program (reflected in Passenger Revenue), with a 15% increase in Operating Expense.

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Other Information/Assumptions: Fixed-Route We have demand that we cant meet because subsidies are constrained, and therefore, well need to cut service. CATAs service area includes enormous student housing corridors that must be served. In order to serve these areas, resources must be taken from commuter and commercial corridors. We can only hang on so long... Shared Ride & ADA Overall demand for combined service to our Shared Ride and ADA ridership is deceasing slightly, but the associated expenses are increasing at a much faster rate. Vanpool Vans are added to the program as demand increases. The vanpool program runs at a fairly small deficit. 29

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Capital Status Review 30

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Partnership with Penn State LOOP/LINK Free-fare Zone Ride-for-Five RideShare Support Local Shares 31

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Innovations Apartment Complex Pass Program Site Plan Review Process Natural Gas Buses Trip-by-trip Service Planning 32

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Use of Technology APTS Service Planning Fleet Management Customer Information Transit Signal Priority iPhone and Android Apps 33

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Relationships Elected Officials Federal, State, Local Local Government Staffs CCMPO (Centre County Metropolitan Planning Organization) and CRCOG (Centre Region Council of Governments) CCOT (Centre County Office of Transportation) CBICC (Chamber of Business and Industry 34

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Involvement in the Industry Hugh in APTA, APTF, PPTA, TCRP, Eno Louwana in APTA, esp. Leadership APTA Jackie and Eric in APTA, TCRP, APTF Terri in ACT, PPTA Julie in SHRM, CRIC, PPTA Greg in ITS-PA, APA, APA-PA 35