TUESDAY, APRIL 16TH Pledge of Allegiance Recite SORTA’s ... Board Packet... · Ridership: Unfavorable by 1,773 or 5% for the month. Fare Revenue: Unfavorable by $5,052 or 18% for

The SORTA Board of Trustees may go into Executive “Closed” Session under the Ohio Open Meetings Act: Section 121.22(G)(1) To consider appointment, employment, dismissal, discipline, promotion, demotion, or compensation of a public employee…; Section 121.22(G)(2) To consider the purchase of property for public purposes….; Section 121.22(G)(3) Conferences with an attorney for the public body concerning disputes involving the public body that are the subject of pending or imminent court action; Section 121.22(G)(4) Preparing for, conducting, or reviewing negotiations or bargaining sessions with public employees…, Section 121.22(G)(5) Matters required to be kept confidential by federal law or regulations or stat statues; Section 121.22(G)(6) Details relative to the security arrangements and emergency response protocols for a public body or a public office; Section 121.22(G)(8) To consider confidential information related to the marketing plans, specific business strategy, production techniques, trade secrets…

SORTA BOARD OF TRUSTEES MEETING

TUESDAY, APRIL 16TH, 2019 – 8:30 A.M

SORTA/METRO BOARD ROOM 602 MAIN STREET, SUITE 1100

CINCINNATI, OHIO

General Items: Call to order Pledge of Allegiance Recite SORTA’s Vision and Mission Statement CEO STAR Award: Clausell Marshall Hearings from citizens (3 minutes per person) Chairman Update Action Items:

1. Approval of Board Minutes: March 19th, 2019

Finance Committee (Heidi Black) Consent:

2. Propose Resolution No. 2019-07: Approval of the Amendment to Article A of the 1973 SORTA-City Agreement

3. Proposed Resolution No. 2019-08: Approval of City Fiscal Year 2019 Streetcar Budget 4. Proposed Resolution No. 2019-09: Approval of the Preliminary 2020 Budget and City Funding Request

Planning & Operations Committee (Brendon Cull) Consent:

5. Proposed Resolution No. 2019-10: Approval of Contract Extension with Passport

Employee Relations (Pete McLinden) Consent:

6. Proposed Motion: Approval of Paid Time Off (PTO) Policy

Briefing Items: 7. Transportation Bill Update (Pete Metz) 8. Financial Reports for March 2019 (David Riposo) 9. Metro on the Move Report (Darryl Haley)

Other Items: New Business

Adjournment

The next regular meeting of the SORTA Board of Trustees is scheduled for Tuesday, May 21st, 2019, 6:00 P.M, the SORTA/Metro Board Room,

602 Main Street, Suite 1100, Cincinnati, Ohio

BOARD OF TRUSTEES SOUTHWEST OHIO REGIONAL TRANSIT AUTHORITY

MINUTES OF: Regular Meeting of the SORTA Board of Trustees DATE: Tuesday, March 19th, 2019, 6:00 P.M.

SORTA/ Metro 602 Main Street Cincinnati, OH 45202

BOARD MEMBERS PRESENT:

Maurice Brown, Brendon Cull, Blake Ethridge, Allen Freeman, Robert Harris, Roderick Hinton, Thaddeus Hoffmeister, Kreg Keesee, Pete McLinden, Mary Miller Gwen Robinson, and Kathleen Wyenandt

BOARD MEMBERS ABSENT:

Heidi Black

STAFF MEMBERS: Darryl Haley, Donna Adkins, Lisa Aulick, John Edmondson, Dave Etienne, Dan Feldman,

Patrick Giblin, Paul Grether, Adriene Hairston, Mary Huller, Michelle Jeng, Caprice Jones, Maria Jones, Ted Meyer, Mary Moning, Mike Nagy, Matt Niehaus, John Ravasio, Cindy Resor, David Riposo, Shannel Satterfield , Khaled Shammout, T.J Thorn, and Mike Weil

OTHERS: Tony Osterlund (VSSP), Troy Miller (ATU), Cam Hardy (BBC), Hannah Sparling (Cincinnati

Enquirer), Neil Kelly (Citizen), Barbara Wolf (BBC) and Chris Moran (LWV) CALL TO ORDER Mr. Keesee, SORTA Board Chair, called the meeting to order. PLEDGE OF ALLEGIANCE The Pledge of Allegiance was recited. VISION AND MISSION SORTA’s vision and mission statements were recited. HEARINGS FROM CITIZENS Barbara Wolf: Ms. Wolf from the BBC shared her concerns regarding the elimination of a bus top at Taft & Kemper in the Walnut Hills Area. She shared she retrieved seventy (70) signatures. Mr. Haley requested the signature sheet and stated SORTA will consider the elimination. Neil Kelly: Mr. Kelly expressed he relies heavily on Metro. He then expressed the public should be involved in the selection process of a new CEO. He proposed three interviews should be held to involve the public to provide feedback to the board. Mr. Kelly explained having the community involved would lead to a great start to connect with riders and interact with public. CHAIRMAN UPDATE Mr. Keesee stated a letter was sent to Mayor Cranley regarding re-enforcements at the Bus Only Lane. Ms. Schaefer provided a brief update regarding an in-house transit police force and issuing tickets for parking violations. APPROVAL OF FEBRUARY 2019 BOARD MEETING MINUTES Mr. Cull made a motion that the minutes of the February 19th meeting be approved as previously mailed and Mr. Brown seconded the motion. By voice vote, the Board approved the minutes. FINANCE COMMITTEE Mr. Hinton reported on the Finance Committee meeting that was held on March 12th and there were no items that required Board approval. PLANNING AND OPERATIONS COMMITTEE Mr. Cull reported on the Planning and Operations Committee that was held on March 12th and there were no items that required Board approval.

SORTA Board of Trustees March 19, 2019

2

BRIEFING ITEMS

ACCESS SERVICES PRESENTATION

Ms. Aulick provided an overview of access services; this included understanding what “Access” is and how it operates. She covered the application, eligibility, appeal, and reservations processes. Also, Ms. Aulick discussed the “pick-up” windows and fares. The Board accepted the report as presented.

RIDER ADVISORY COMMITTEE

Mr. Etienne presented Rider Advisory Committee presentation. He discussed the purpose of the committee and its’ plan. COhear will conduct 4 to 6 focus groups with select participants (low-income riders, students, Millennials, seniors and downtown workers) to hear service suggestions and recommendations from real customers and learn perceptions from non-riders. Also, to receive feedback on proposed service changes, amenities, marketing campaigns, etc. The committee The Board accepted the report as presented.

MONTHLY FINANCIAL REPORT FOR FEBRUARY 2019 Mr. Riposo presented the February 2019 financial reports. Total revenues were $7.5 million, which is favorable to budget by $1,000. Total expenses were $7.8 million, which is favorable to budget by $50,000 or 0.6%. The final result was a net favorable variance of $51,000 for the month. Fare revenue was favorable to budget by $2,000 or 0.2%. Mr. Riposo then reviewed the contributing factors to these variances. He also presented the Cincinnati Bell Connector financial report for February 2019. Total revenues were $269,285 which is unfavorable to budget by $72,965 or 21%. Total expenses were $343,040 which is unfavorable to budget by $2,749 or <1%. The end result is a net unfavorable variance of $73,755 for the month. Mr. Riposo then reviewed the contributing factors to these variances. The Board accepted the report as presented. METRO ON THE MOVE Mr. Haley provided a brief overview of the Metro on the Move report. His report included: kudos to the Marketing department regarding their efforts on several new campaigns and Finance departments for its’ 28th consecutive year receiving Certificate of Excellence in Financial Reporting from the Government Finance Officers Association for its Comprehensive Annual Financial Report (CAFR). He also discussed upcoming events. The SORTA Board accepted the report as presented. NEW BUSINESS ADJOURNMENT The meeting adjourned at 7:00 P.M. NEXT MEETING The next regular meeting of the SORTA Board of Trustees is scheduled for Tuesday, April 16th, 2019 at 8:30 A.M., the SORTA/Metro Board Room, 602 Main Street, Suite 1200, Cincinnati, Ohio. APPROVED: ATTESTED: Kreg Keesee Chair, SORTA Board

David A. Riposo CFO/Secretary Treasurer

CEO Star Award Presentation Bond Hill Operator Clausell Marshall is receiving a CEO STAR Award for not missing an assignment for 10 years. That’s 120 consecutive months without a single MISS!

Thank you for you efforts & congratulations!

Attachments:

Action Item Agreement

BOARD OF TRUSTEES

SOUTHWEST OHIO REGIONAL TRANSIT AUTHORITY RESOLUTION NO. 2019-07

APPROVAL OF AMENDMENT TO ARTICLE A OF THE CITY-SORTA AGREEMENT

WHEREAS:

1. By Resolution No. 1973-01 the SORTA Board approved an agreement between SORTA and the City of Cincinnati that became effective February 8, 1973.

2. SORTA has requested that the Transit Fund Insurance Reserve be transferred from the City to SORTA for risk-management-related accounting balance sheet purposes.

3. In February 2019, SORTA Board approved the General Liability Reserve Policy

contingent upon receiving these Reserve Funds from the City. The Reserves will be set annually based on annual Actuarial Reports conducted by a licensed Actuary. The amount will vary each year based on the claims experience.

4. Staff recommends the Board approve the Amendment to Article A the SORTA-City Agreement and authorize the Board Chair or Vice Chair to execute the amendment and transmit it to the City of Cincinnati for execution by the City Manager. THEREFORE, BE IT RESOLVED:

5. The Board hereby approves the Amendment to Article A of the SORTA-City Agreement as attached and authorizes the Board Chair or Vice Chair to execute it on behalf of SORTA.

**************

MOVED BY: Gwen Robinson SECOND BY: Kathy Wyenandt VOTE Aye: Mr. Cull, Mr. Ethridge, Mr. Hoffmeister, Mr. Keesee, and Mr. McLinden Nay:

None

Abstain:

None

ABSENT AT THE TIME:

Heidi Black, Maurice Brown, Allen Freeman, Robert Harris, Rod Hinton, and Mary Miller

APPROVED: April 16, 2019

April 2019

APPROVAL OF THE AMENDMENT TO ARTICLE A OF THE 1973 SORTA-CITY AGREEMENT

STRATEGIC PLAN GOAL / OBJECTIVE

• Operational Excellence RECOMMENDATION Approval and the execution of the Amendment to Article A of the 1973 SORTA-City Agreement to transfer the Transit Insurance Reserve in the amount of $3,000,000 from the City to SORTA.

FINANCIAL CONSIDERATIONS

• In February 2019, SORTA Board approved the General Liability Reserve Policy contingent upon receiving these Reserve Funds from the City. The Reserves will be set annually based on annual Actuarial Reports conducted by a licensed Actuary. The amount will vary each year based on the claims experience.

• This agreement was considered in relation to an agreement in which SORTA will pay wage rates that meet or exceed those in the City’s Living Wage ordinance to certain employees

BUSINESS PURPOSE

• These funds will be transferred into the self-insurance reserve program that may be used to pay claims and other costs necessary to operate the self-insurance program. It establishes a fund to act as a reserve for the self-insured general liability program (Insurance Reserve). SORTA shall maintain self-insurance reserves in an amount not less than that required and calculated annually by a licensed actuary and reported as part of its annual external audit required by the State of Ohio.

PROCUREMENT CONSIDERATIONS

• N/A

D/M/WBE CONSIDERATIONS

• N/A

LEGAL CONSIDERATIONS

Attachments: General Liability Reserve Policy

• Section 9.83 of the Ohio Revised Code allows SORTA to establish a Reserve Fund

SUBMITTED BY:

David Riposo Darryl Haley CFO/Secretary-Treasurer Interim CEO/General Manager

{00276163-4}

AMENDMENT TO ARTICLE A OF THE 1973 SORTA-CITY AGREEMENT

This Amendment to Article A of the 1973 SORTA-City Agreement (“Amendment”) is entered into between the City of Cincinnati (“City”), a municipal corporation, and the Southwest Ohio Regional Transit Authority (“SORTA”), a regional transit authority formed under Chapter 306 of the Ohio Revised Code (collectively, the “Parties”). WHEREAS, the Parties entered the SORTA-City Agreement (“1973 Agreement”) effective February 8, 1973; and WHEREAS, pursuant to Article C, Paragraph 11 of the Agreement, the Parties mutually wish to amend Article A of the Agreement; and

WHEREAS, Article A, Paragraph 9 of the Agreement provides that SORTA is wholly responsible for the safety of the Metro bus system, that SORTA will carry appropriate insurance, and that the costs of insurance will be included as an item of SORTA’s funding requests; and WHEREAS, on September 4, 1986, City Council passed Ordinance No. 312-1986 appropriating $2,000,000 from the unappropriated surplus of Income Tax – Transit Fund No. 759 to Fund No. 759x08100x7200 to be used to provide general liability self-insurance for SORTA (“Transit Fund Insurance Reserve”); and

WHEREAS, at the request of SORTA in 2001, City Council increased the Transit Fund Insurance Reserve to $3,000,000, which funds remain unexpended in Fund No. 759; and

WHEREAS, SORTA has requested that the Transit Fund Insurance Reserve be

transferred from the City to SORTA for risk-management-related accounting balance sheet purposes; and

WHEREAS, the City and SORTA were named as co-defendants engaged in litigation regarding the application of the City’s Living Wage Ordinance to SORTA employees and desire to moot the issue through SORTA’s commitment to meet or exceed Living Wage rates in future collective bargaining negotiations; and WHEREAS, the City and SORTA, collectively and individually, agree to be bound by the terms of the Agreement, as amended by this Amendment; and WHEREAS, SORTA, through its Board of Trustees, and the City Manager, per authorization of the City Council as demonstrated via Ordinance No. 87-2019, are duly and properly authorized to enter into this Amendment. NOW THEREFORE, in consideration of the above factors and of the mutual covenants contained herein and in the Agreement, it is agreed as follows:

1. All of the terms of the Agreement and all prior amendments to the Agreement will continue in full force and effect unless specifically amended in this Amendment. Unless otherwise specified in this Amendment, all of the words used in this

{00276163-4} -2-

Amendment shall have the same meaning and definitions as the same words used in the Agreement.

2. Article A of the Agreement is hereby amended by adding the following

(additions double underlined) to Paragraph 9:

9. Safety, Claims, and Insurance.

a. SORTA will be wholly responsible for the safety of the system. Thus, SORTA will develop and install appropriate driver training programs, develop or retain skilled claims attorneys and related specialists and indemnify, protect, and hold the City harmless from damage suits arising out of the operations of the system and defend the City should suits be attempted. To this end, SORTA will carry appropriate insurance. SORTA will take over and settle all outstanding claims which City has taken over from CTI in the acquisition agreement. The costs of staff, claims, and insurance will be included as an item of SORTA’s funding requests.

b. SORTA shall maintain self-insurance reserves in an amount not less

than that required and calculated annually by a licensed actuary and reported as part of its annual external audit required by the State of Ohio (“Insurance Reserve”), a copy of which SORTA agrees to provide to the City each year, if requested. SORTA agrees that funding appropriated by the City and transferred to the Insurance Reserve for SORTA self-insurance and risk-management purposes is to be used exclusively for such purposes, which include, without limitation, to defend and hold the City harmless as required by Paragraph 9(a) of this Agreement. The Parties agree that expenditures from the Insurance Reserve shall be administered in accordance with the General Liability Policy established and approved by the SORTA Board of Trustees, prior to the transfer of the Transit Fund Insurance Reserve to SORTA. SORTA agrees to provide a draft General Liability Policy to the City for review and comment, if requested, prior to adoption to ensure it is appropriate in all respects and in keeping with such policies for public agencies.

c. Upon receipt of the Transit Fund Insurance Reserve in the amount of

$3,000,000, SORTA shall have a continuing duty to track the Transit Fund Insurance Reserve funds as a separate source of funds within its Insurance Reserve. The Transit Fund Insurance Reserve funding is intended to be the last money out of the Insurance Reserve, and may be expended by SORTA only if (i) the Insurance Reserve otherwise lacks sufficient funds to cover a proposed expenditure; or (ii) such funds are necessary for SORTA to hold the City harmless as required under Section 9(a) of this Agreement. In addition to the foregoing, written notice to the City Manager is required for any expenditure of

{00276163-4} -3-

$100,000 or more of the Transit Fund Insurance Reserve funds by SORTA.

3. Article A of the Agreement is hereby amended by adding the following new

Paragraph 16:

16. Wages. SORTA agrees that effective January 1, 2018, it shall pay its permanent employees, and contractors who provide paratransit services, if any, wage rates equal to or above the rates in the then current City’s Living Wage provisions, codified at Cincinnati Municipal Code Chapter 317, as amended from time to time. For the limited purpose of SORTA’s wage commitment under this paragraph, persons employed through an internship program of fixed duration are not deemed permanent employees and therefore not subject to the wage requirements under this Agreement. If the City’s Living Wage Ordinance is amended to change the identified wage rate, SORTA’s commitment to change wages in a corresponding fashion shall commence only upon termination of any then-existing labor or service contracts, either internal or external.

4. This Amendment may be amended only by written agreement signed by all

Parties as set forth in Article C, Paragraph 11 of the Agreement.

[remainder of page intentionally left blank – signature page follows]

{00276163-4} -4-

In Witness Thereof, SORTA, by Kreg Keesee, Chair of its Board of Trustees, and the City of Cincinnati, by Patrick Duhaney, its City Manager, have set their hands as set forth below. This Amendment is executed by the parties on the dates indicated below, and is effective as of the later of such dates (the "Effective Date").

CITY OF CINCINNATI SOUTHWEST OHIO REGIONAL

TRANSIT AUTHORITY

By: By: Patrick A. Duhaney, City Manager Kreg Kessee, Chair of Board of Trustees Date: ________________, 2019 Date: ________________, 2019

Recommended by: Recommended by:

Joseph C. Vogel, Director Name: Department of Transportation & Engineering Title:

Approved by: John Edmondson Director of Procurement

Approved as to Form: Approved as to Form: Assistant City Solicitor Outside Counsel to SORTA Certification of City Funds: Certified Date: Fund/Code: Amount: By: Reginald Zeno, City Finance Director


RESOLUTION NO. 2019-08

APPROVAL OF CITY FISCAL YEAR 2020 STREETCAR BUDGET

WHEREAS:

1. Under the Cincinnati Streetcar Operations and Maintenance Intergovernmental Agreement (OMIGA), which the Board approved in December 2014 under Resolution No. 2014-50, SORTA oversees the operation and maintenance of the Cincinnati Streetcar.

2. As part of OMIGA, SORTA must submit an annual operating and maintenance funding request for the Cincinnati Streetcar to be approved and appropriated by the City of Cincinnati (“the City”) on an annual basis no later than two months prior to the start of the City’s fiscal year, in a manner consistent with SORTA’s existing budget authorization process.

3. SORTA has presented to the City Administration a budget including SORTA revenue sources (fares/advertising) and SORTA expenses, including Transdev contract, SORTA overhead (staff time) and direct costs.

4. The streetcar budget being submitted to the City of Cincinnati reflects expenditures for

the City fiscal year July 1, 2019 to June 30, 2020 and establishes the Cincinnati Streetcar/Metro fare policy and the level of service.

5. SORTA staff recommends that the Board authorize the transmittal to the City of Cincinnati the Fiscal Year 2019 Streetcar Operations & Maintenance Budget of $4,408,661.

THEREFORE, BE IT RESOLVED:

6. The Board hereby approves the City Fiscal Year 2019 Streetcar Operations and Maintenance Budget in substantially the form attached and authorizes and directs its transmittal to the City of Cincinnati by the Interim CEO/General Manager, Interim EVP/COO, or the CFO/Secretary-Treasurer on behalf of SORTA.

**************

MOVED BY: Kreg Keesee SECOND BY: Robert Harris VOTE Aye: Mr. Cull, Mr. Ethridge, Mr. Hoffmeister, Mr. McLinden, Ms. Robinson, and Ms.

Wyenandt Nay:

None

Abstain:

None

ABSENT AT THE TIME: Heidi Black, Maurice Brown, Allen Freeman, Rod Hinton, and Mary Miller APPROVED: April 16, 2019

Attachments: Action Item

Presentation

April 2019

ACTION ITEM-APPROVAL OF CITY FISCAL YEAR 2020 STREETCAR BUDGET


• OPERATIONAL EXCELLENCE

RECOMMENDATION Approval of a resolution authorizing the CEO/General Manager, EVP/COO, or the CFO/Secretary-Treasurer, to transmit to the City of Cincinnati the Fiscal Year 2020 Streetcar Operations and Maintenance Budget of $4,408,661.


• SORTA has budgeted two revenue sources: fare revenue and advertising o Fare revenue is based on an updated seasonally adjusted monthly ridership forecast

based on a blend of actuals and forecasts with documented assumptions; o Advertising revenue is based on vendor forecast, which is a $600,429 decrease from the

2019 budget

• SORTA has budgeted for expenses: o Operations Contractor (Transdev) -- fixed price, fixed scope contract o 8% SORTA overhead – SORTA fixed/staff costs (based on Operations Contractor cost) o Direct SORTA costs – traction power, fare media, IT costs, SORTA systems

maintenance, security detail (not including fare enforcement), etc. o Marketing costs are increasing from $10,000 to $100,000 in support of increased

ridership and fare revenue. o Any City Overhead and Direct Costs are not included; o Supplemental and charter service is not included since revenues offset costs; o The capital budget is not included; a 30 year Capital Improvement Plan (CIP) compliant

with FTA requirements is being finalized.

• There are not anticipated to be any favorable or unfavorable previous year carryovers

• The City Fiscal Year 2020 Streetcar Operations and Maintenance Budget for a total of $4,408,661.

BUSINESS PURPOSE

• Section 3.3 of the OMIGA requires SORTA to submit Operating & Maintenance Budget to the City of Cincinnati is based on City fiscal year 2020, July 1, 2019 - June 30, 2020 as required.

• This budget includes unchanged streetcar service levels and fare policy.

Attachments: Presentation

• The fare policy and allocations remain the same. If a streetcar only monthly pass is introduced it will be presented as a budget amendment following the required Title VI analysis.


• N/A


• N/A


• N/A

SUBMITTED BY:

Paul Grether Darryl Haley Director of Rail Services Interim CEO/General Manager

Cincinnati Bell Connector Funding Request Cincinnati Fiscal Year 2020

O&M Intergovernmental Agreement • §3.3 of the OMIGA requires SORTA to submit Operating &

Maintenance funding request to the City

• 2020 Funding Request is based on City fiscal year – July 1, 2019 – June 30, 2020

• Four components

– Base Service – Fare Policy – SORTA Funding request

• System Generated Revenues • Cost of Operation

2

Base Service – No Change to Current • Span of service:

Sunday and holidays: 9:00 a.m. – 11:00 p.m. Monday-Thursday: 6:30 a.m. – midnight Friday: 6:30 a.m. – 1:00 a.m. Saturday: 8:00 a.m. – 1:00 a.m.

• Frequency: Base frequency: 15 minutes Peak (Monday-Friday, 11 a.m.-7 p.m.): 12 minutes Note: SORTA is considering cost-neutral service changes to improve service productivity in CFY2020

3

Fare Policy • No Changes to Fare Policy • Fare policy changes must be approved by Board of Trustees

and Cincinnati City Council

Note: No fare change (free fare scenario) contemplated for CFY2020; would be implemented through budget change request

4

System Generated Revenue • Fare Revenue

– New ridership projection – $0.65 / boarding average revenue July 2018 through March 2019

• Advertising – Projections from Advertising Vehicles

• Advertising – Vehicles • Naming rights – System and Station

– Station Advertising transition to City Program • FTA formula included CFY2020

5

Ridership Forecast • Process

– Forecast blend of actual and projected ridership

– Monthly rather than annual forecast (seasonal) consistent with Metro budget

• Weekday • Friday • Saturday • Sunday/Holiday

– BLINK October 2019 – no increase pending operational plan

6

Ridership Forecast by Month

7

AnnualMonth> Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Total

Weekdays 25,650 19,363 13,504 18,016 10,515 13,243 9,418 10,992 11,772 15,120 17,025 23,580 188,198

Friday 9,088 9,155 6,940 7,830 8,371 5,636 4,745 4,020 5,872 7,368 9,325 9,208 87,558

Saturday 15,468 14,800 12,620 12,945 11,088 9,788 5,132 8,660 11,040 10,100 16,770 15,588 143,999

Sunday 6,436 5,860 8,785 6,905 4,804 6,175 2,452 2,764 5,650 4,204 10,195 5,884 70,114

Holiday 1,367 - 1,400 - 255 348 - - - - 1,639 - 5,009

Total 58,009 49,178 43,249 45,696 35,033 35,190 21,747 26,436 34,334 36,792 54,954 54,260 494,878

2019 2020

Operating Expenses • Transdev contract:

– September 2019 new pricing (contract year 3) • July 2019 – August 2019 $289,894/month • September 2019 – June 2020 $301,378/month

– Charter and Supplemental service rate increases • Charter revenues offset costs

• SORTA Overhead – 8% of Transdev Contract

• Direct Costs - traction power, fare media, IT infrastructure, systems maintenance, marketing, security, etc.

8

9

$ %

Ridership 494,878 536,291 (41,412) (7.7%)Average per day 1,352 1,469 (117)

Fare/Rider $ 0.65 $ 0.76 $ (0.10) (13.6%)

RevenueOperating RevenueFares 323,834$ 406,138$ (82,304)$ (20.3%)Other - - n/a

Total Fare Revenue 323,834 406,138 (82,304) (20.3%)Other RevenueFederal Formula Funding 196,379 - 196,379 n/aAdvertising - System & Station 82,800 650,000 (567,200) (87.3%)Naming Rights - System & Station 217,771 251,000 (33,229) (13.2%)

Total Fares & Other Revenue 820,784 1,307,138 (486,354) (37.2%)

Cost of OperationsTransdev 3,593,573 3,450,306 (143,267) (4.2%)

SORTA Management Fee 287,485 276,026 (11,459) (4.2%)Direct Costs 527,604 190,584 (401,458) (210.6%)

- - - 0.0%Total Operating Expenses 4,408,661 3,916,916 (556,184) (14.2%)

Funding Request (3,587,877)$ (2,609,778)$ (1,042,538)$

2020FundingRequest

2019Final City

Budget

2020 vs. 2019Fav/(Unfav)

Thank you

Appendix

12

Advertising & Naming Rights 2020 vs 2019 Fav(Unfav)

$ %AdvertisingStation

TVM -$ 55,717$ (55,717)$ (100.0%)Digital - 444,283 (444,283) (100.0%)

- 500,000 (500,000) (100.0%)System 82,800 150,000 (67,200) (44.8%)

Total Advertising 82,800$ 650,000$ ($567,200) (87.3%)

Naming RightsStation 31,771$ 65,000$ (33,229)$ (51.1%)System 186,000 186,000 0 0.0%

Total Naming Rights 217,771$ 251,000$ ($33,229) (13.2%)

2020 Funding Request

2019 Budget

Direct Cost Detail for 2019 Budget 2020 vs 2019 Fav(Unfav)

$ %

TVM Maintenance 200,000$ 244,500$ 44,500$ 18.2%

City Capital Funds (64,439) - 64,439 n/a

Metro Police Detail 66,742 45,000 (21,742) (48.3%)

Utilities 130,000 130,000 0 0.0%

Fare Media 13,500 13,500 0 0.0%

Credit Card Fees 22,000 22,000 0 0.0%

IT Infrastructure 30,000 29,625 (375) (1.3%)

Bank Fees 17,500 17,542 42 0.2%

Marketing 100,000 10,000 (90,000) (900.0%)

Radio/Trapeze Maintenance 12,300 12,329 29 0.2%

Other - (333,912) (333,912) 100.0%

Total Direct Costs 527,604$ 190,584$ (337,020)$ (176.8%)

2020 Funding Request

2019Direct Cost Allocation


RESOLUTION NO. 2019-09

APPROVAL OF THE PRELIMINARY 2020 BUDGET AND FUNDING REQUEST

WHEREAS:

1. The Operating Agreement between SORTA and the City of Cincinnati provides that SORTA prepare a biennial funding request for City approval.

2. SORTA staff has prepared a preliminary transit operating plan for 2020 which is

now being submitted to the SORTA Board for approval. In accordance with the 2020 operating plan of $102,440,628, SORTA staff recommends requesting funding from the City of Cincinnati Transit Fund of $53,730,256 for operating purposes and $169,744 for capital in order to balance the 2020 budget.

THEREFORE, BE IT RESOLVED:

3. The Board hereby adopts the 2020 preliminary budget of $102,440,628 and requests the City of Cincinnati provide funding for calendar year 2020 in accordance with SORTA’s funding request.

4. The Chair or Vice Chair of the Board are hereby authorized and directed to

transmit the funding request to the City of Cincinnati.

************** MOVED BY: Heidi Black SECOND BY: Brendon Cull VOTE Aye: Mr. Ethridge, Mr. Harris, Mr. Hoffmeister, Mr. Keesee, Mr. McLinden, Ms.

Robinson, and Ms. Wyenandt Nay:

None

Abstain:

None

ABSENT AT THE TIME: Maurice Brown, Allen Freeman, Rod Hinton, and Mary Miller APPROVED: April 16, 2019

Attachments: Action Item PowerPoint

April 2019

ACTION ITEM- APPROVAL OF THE PRELIMINARY 2020 BUDGET AND FUNDING REQUEST TO BALANCE 2020 BUDGET


• Operational Excellence RECOMMENDATION Approval of the preliminary 2020 budget of $102,440,628, consisting of $5,767,634 from reserves, prior years’ surplus and other cost reduction initiatives, if required, in order to balance the preliminary 2020 budget, and a funding request to the City of Cincinnati of $53,730,256 for operating purposes and $169,744 for capital.


• SORTA staff has now prepared a preliminary transit operating plan for 2020 of $102,440,628, consisting of $5,767,634 from reserves, prior years’ surplus and other cost reduction initiatives, if required, in order to balance the preliminary 2020 budget.

• SORTA staff recommends requesting funding from the City of Cincinnati Transit Fund of $53,730,256 for operating purposes, and $169,744 for capital.

BUSINESS PURPOSE

• Approval of the 2020 operating plan allows staff to continue operations in 2020. PROCUREMENT CONSIDERATIONS

• N/A


• N/A


• Section 306.35 of the Ohio Revised Code (ORC) states that that a regional transit authority may maintain funds that it considers necessary for the efficient performance of its duties.

SUBMITTED BY:

David A. Riposo Darryl Haley CFO/Sr. Vice-President, Finance Interim CEO/General Manager

Attachments: PowerPoint

SORTA Funding Request

April 9, 2019

David A. Riposo Senior Vice President

Finance

2

2019 Revised Budget & 2020 Projection 2019 2020

(000) 2018 2019 2019 2019 2020 2020 2020Preliminary

Actual*ApprovedBudget

Updates Revised Budget

Original Projection

Updates RevisedProjection

Recovery Ratio 19.3% 17.9% 17.9% 16.7% 16.8%Ridership (Total Fixed Less Access) 13,751 13,150 13,150 13,003 13,003

RevenueMetro Fare Revenue $17,919 $16,614 $0 $16,614 $15,951 $0 $15,951Access Fare Revenue 953 976 0 976 976 0 976 Total Fares 18,873 17,590 0 17,590 16,927 0 16,927

CPS Contract Revenue 8,213 8,205 0 8,205 8,370 0 8,370Non-Transportation Revenue 1,928 2,069 0 2,069 2,175 0 2,175Transit Fund Operating 56,386 53,019 0 53,019 53,730 0 53,730Subsidy Revenue 15,903 15,176 133 15,309 15,336 135 15,471

Total Revenue 101,304 96,059 133 96,192 96,538 135 96,673

ExpensesEmployee Wages 46,317 46,373 698 47,071 46,373 1,287 47,660Employee Benefits 23,537 25,875 (455) 25,420 26,819 (337) 26,482Purchased Transportation 6,830 7,136 0 7,136 7,350 0 7,350Fuel & Lubricants 5,732 5,619 0 5,619 5,907 0 5,907Parts & Supplies 6,243 5,882 0 5,882 5,954 0 5,954Other 10,972 8,977 0 8,977 10,325 (1,237) 9,088

Total Expenses 99,630 99,862 243 100,104 102,728 (287) 102,441

Prior Year Reserves 295 2,803 0 2,803 0 0 0Prior Year Surplus 0 1,000 110 1,110 0 0 0

Operating Income(Deficit) $1,968 $0 $0 $0 ($6,190) $422 ($5,768)

* 2018 Preliminary Actual - Unaudited

Administrative Restructuring

3

• As a result of a comprehensive review, 9 positions were either eliminated or replaced with lower cost, lower lever positions

– Savings, including benefits, of nearly $1M annually, offset by approximately $0.1M for adjustments related to expanded responsibilities for certain positions

• Critical investment in IT (1) and Operator Training (3) were approved – Cost, including benefits, of approximately $0.5M

• Increased training throughput and reduction in O/T should yield substantial savings in 2020 budget

• Expanded IT capacity will support 2019 goal of upgrade/replacement of current transit operating system (Trapeze)

Annual savings of $0.4, reducing headcount while increasing key capabilities

4

2019 Budget & 2020 Projection Bridge

(M)

2019 Revised Budget

2020Revised

Projection

Operating Deficit - Before Updates $0.0 ($6.2)

Wage & Wage Related Benefits

CBA Wage Increase (1.1) (1.7)Administative Headcount Changes 0.4 0.4Union Wage Progression (0.2) (0.2)

Total Wage & Related Benefits Increase (0.9) (1.5)

Decrease in Medical Cost 0.6 0.6

Increase Federal Subsidy Revenue 0.1 0.1

Decrease Other Expense 0.0 1.2

Change in Projection (0.2) 0.4

Prior Year Surplus 0.1 0.0

Operating Deficit - After Updates $0.0 ($5.8)

SORTA Reserves and Requirements

5

(M)

Contingency Reserve, Ending 2018 $6.6

Less Board Approved Reserve to Balance 2019 Budget (2.8)

Contingency Reserve Current $3.8

2018 Surplus (Unaudited) 2.0

Less Prior Year Surplus Needed to Balance 2019 Budget (1.1)

Prior Year Surplus Remaining $0.9

2019 & 2020 Recommendation

6

• SORTA is required by statute to submit a balanced budget – Assumes no change in current funding mechanism

• Recommend 2018 Surplus be authorized, as required not to exceed $1.1M, to balance 2019 Budget

• The following are available to address preliminary, projected 2020 deficit of $5.8M, subject to further updates during final budget process:

Contingency Reserve $3.8M 2018 Surplus $0.9M New Ohio Assistance TBD

7

BOARD OF TRUSTEES

SOUTHWEST OHIO REGIONAL TRANSIT AUTHORITY RESOLUTION NO. 2019-10

APPROVAL OF CONTRACT EXTENSION WITH PASSPORT

WHEREAS:

1. By Resolution No. 2016-14, the SORTA Board approved a three (3) year contract with Passport at a total cost of $253,600 to maintain and support the Cincy EZ Ride mobile ticketing application.

2. A one (1) year contract extension is needed to continue maintenance and

support for the mobile ticketing app. 3. Staff recommends an additional one (1) year extension with Passport at a total

cost up to $75,000 to cover technical maintain and support for a total contract value not to exceed $328,600. THEREFORE, BE IT RESOLVED: 5. The Board hereby approves the extension between SORTA and Passport and authorizes and directs the Interim CEO/General Manager, Interim COO, or the CFO/Secretary- Treasurer to execute it on behalf of SORTA for an additional one (1) at a total cost up to $75,000 for a total contract value not to exceed $328,600.

************** MOVED BY: Brendon Cull SECOND BY: Gwen Robinson VOTE Aye: Ms. Black, Mr. Ethridge, Mr. Harris, Mr. Hoffmeister, Mr. Keesee, Mr.

McLinden, and Ms. Wyenandt Nay:

None

Abstain:

None



Contract Summary

April 2019

ACTION ITEM- APPROVAL OF CONTRACT EXTENSION WITH PASSPORT


• Operational Excellence • Innovation

RECOMMENDATION Approval of a resolution authorizing the Interim CEO/General Manager, Interim COO, or the CFO/Secretary-Treasurer to extend the current contract on behalf of SORTA for a one (1) year with Passport at a cost up to $75,000, for a total contract value not to exceed $328,600.


• The current three (3) year contract included technical maintenance and support at $75,000 per year with onboard and handheld validators for $28,600 bringing the total contract amount to $253,600 and expires May 2019.

• A one (1) year contract extension is needed to continue maintenance and support for the mobile ticketing application.

• The extension will begin June 2019 at a total cost up to $75,000 for a total contract value

not to exceed $328,600.

• This expenditure will be funded with operating funds.

BUSINESS PURPOSE

• SORTA will need a one (1) year extension with Passport to continue technical support for the Cincy EZ Ride app.


• This is a contract extension for one (1) year.

• The contract procurement summary is attached.


• N/A

Attachments: Contract Summary


• Section 306.35 of the Ohio Revised Code authorizes SORTA to contract for the provision of goods and services.

SUBMITTED BY:

Khaled Shammout Darryl Haley Director of Transit Development Interim CEO/General Manager

Procurement Summary Report

Contract Modification Contract No. 2016-C08

Contract Information

A. Description: Current mobile ticketing application.

B. Contractor: Passport

C. Original Contract Amount: Not to exceed $253,600

D. Amount of this Modification: $75,000

E. Revised Contract Amount: $328,600

F. Purpose of Contract Modification: This modification is needed to add time and funding to the contract. The modification extends the expiration date of the contract from May 19, 2019 to May 31, 2020. This modification is needed for continued mobile ticketing functions for passengers while an alternative application is developed, tested, and deployed.

G. Funding Source: 100% local funding

Recommendation to execute contract modification.

Reviewed and Approved: _______________________ Director of Procurement

MOTION

ADOPTION OF PAID TIME OFF (PTO) POLICY I move that the SORTA Board adopt the attached Paid Time Off (PTO) Policy and authorize the Interim CEO/General Manager and VP Human Resources.

**************

MOVED BY: Pete McLinden SECOND BY: Robert Harris VOTE Aye: Ms. Black, Mr. Cull, Mr. Ethridge, Mr. Harris, Mr. Hoffmeister, Mr.

Keesee, Mr. McLinden, Ms. Robinson and Ms. Wyenandt Nay:

None

Abstain:

None



Policy

Attachments: Policy

April 2019

ACTION ITEM – APPROVAL OF PAID TIME OFF (PTO) POLICY


• Organizational Sustainability

RECOMMENDATION

It is recommended that the SORTA Board adopt and approve the attached Paid Time Off (PTO) Policy and authorize the Interim CEO/General and VP Human Resources to implement the policy.


• None

BUSINESS PURPOSE

• SORTA provides paid time off (PTO) for eligible employees to take time for rest and recuperation in order to promote a better work/life balance. PTO allows every employee the same amount of paid time away from work (based on tenure) regardless of the reason. Employees will be able to take PTO if they are sick, for medical appointments or to take a vacation.


• None


• None


• None

SUBMITTED BY:

Adriene Hairston VP Human Resources

Darryl Haley Interim CEO/General Manager

PTO

Metro Policy Number: 5-004 Description: Benefits

Revision Number: 0006 Page Number: Page 1 of 6

Prepared by: Adriene Hairston Approved by:

Issued by: Adriene Hairston Issue Date: 04/1/2019

1

Approval Signatures

Name, Title_________________________________________________________________

Change Record

Revision Number

Date Responsible

Description of Change

0001 8/1/1995 Human Resources New

0002 10/22/2008 Human Resources Revised

0003 1/1/2009 Human Resources Revised

0004 12/1/2012 Human Resources Format

0005 11/1/2013 Human Resources Provided example of earned vacation credit

0006 4/1/2019 Human Resources Vacation. Floating Holidays & Sick to Paid Time Off (PTO)

Distribution List: SORTA Administrative Employees

PTO





2

1.0 Introduction 1.1 SORTA provides paid time off (PTO) for eligible employees to take time for rest

and recuperation in order to promote a better work/life balance. Except as described below in Section 6.0, PTO Carry-Over or Section 7.0, Pay in Lieu of Paid Time Off, employees must use the available PTO time in the twelve-month period in which it is granted. 1.1.1 PTO is awarded to an employee on January 1st of each calendar year.

SORTA is giving the employee credit for an assumed twelve months of service. If an employee terminates employment and has used PTO time not yet earned, the PTO taken will be deducted from the final paycheck.

2.0 Policy

2.1 Paid Time Off (PTO) 2.1.1 Full-time employees receive annual paid PTO time based on the following

chart:

From date of hire (Prorated) 20 days per year

After five (5) years of continuous service 25 days per year

After twelve (12) years of continuous service 30 days per year

After twenty (20) years of continuous service 35 days per year

2.1.2 An employee promoted to a job grade 19 or higher will receive one

additional week of PTO. All terms and conditions set forth below concerning the use of PTO time shall apply to the total authorized days of PTO. PTO may not exceed 35 days at time of promotion.

2.1.3 Part-time employees will earn PTO based on their average “hours worked” once they exceed an average of 28 hours per week. See Policy 5-006 Part-time Employee Benefits.

2.1.4 Student interns or temporary employees are not eligible for PTO.

PTO





3

2.1.5 Executive team members (Grade 21 or higher) are eligible for PTO days upon hire or promotion into a qualifying position based on the following chart:

2.2 Choosing PTO 2.2.1 With prior management approval, employees may take PTO in the

following increments:

All PTO at one time

In one-week segments

One day at a time

One-half day at a time

One hour increments

2.2.2 Department managers will attempt to allow an employee to take PTO at the time the employee prefers. However, this may not always be possible. In this case, the employee and department management will agree on another time for the employee’s PTO.

2.2.3 Employees may be allowed to change their choice of PTO dates, with prior management approval and subject to business needs.

3.0 New Employees

3.1 A new employee will be granted PTO (prorated) based on month of start. The granting of such PTO is subject to the employee agreeing in writing to permit SORTA to withhold or deduct the value of any used PTO time that has not yet been earned, if the employee leaves the service of SORTA with a PTO deficit. This repayment will be deducted from the employee’s final paycheck.

From date of hire (Prorated) 25 days per year

After five (5) years of continuous service 30 days per year

After twelve (12) years of continuous service 35 days per year

PTO





4

4.0 Employees on Short Term Disability 4.1 Refer to Leave of Absence Policy, regarding the use of PTO while on short term

disability.

5.0 Employees Leaving SORTA 5.1 If an employee has used PTO time not yet earned, and employment terminates

the PTO is deducted from the final paycheck

5.2 An employee leaving SORTA’s service will be paid for any earned PTO that has not been used in the current PTO year.

5.3 The employee will not be paid for earned PTO if they do not give two weeks’ notice.

5.4 In the case of an involuntary termination (for cause) no PTO will be paid.

5.5 Employees who plan to retire may take their earned PTO prior to the effective date of the retirement or may choose a lump-sum payment for PTO not used at retirement.

6.0 PTO Carry-Over

6.1 If an employee is unable to use all their PTO before the end of the calendar year, the employee may carry over up to 10 days of PTO time into the next calendar year, (subject to section 8).

6.2 If there is a business need to carry over more than 10 days, the employee must

have the approval of the Function Head and CEO.

6.3 No carry-over of PTO will be permitted from any year in which voluntary time off without pay has been used. See Policy 5-007 Voluntary Time Off Without Pay.

6.4 The employee and manager/supervisor are responsible for notifying Human

Resources whenever PTO is being carried over by submitting a completed PTO Carry Over Request Form.

PTO





5

7.0 Pay in Lieu of time off (PTO) 7.4 Due to business needs, it may be necessary to require that an employee forego

the use of some portion of their earned PTO.

7.5 The employee will be given 30-days advance notice (when possible) of the need to forego their PTO. In this case, management may offer pay in lieu of PTO (up to a maximum of five days). There may also be instances where an employee finds it necessary to forego PTO in order to meet the business needs of their department and carrying over PTO is not feasible. In this instance, employees may request pay in lieu of PTO (up to a maximum of five days). More than five days must be approved by the CEO.

7.6 The following guidelines apply to pay in lieu of PTO:

7.6.1 Payment in lieu of PTO will only be granted for a 5 day period. (More than 5 days must be approved by the CEO)

7.6.2 Compensation will be at the employee’s rate of pay at the time of the

payment.

7.6.3 Separate payment will be made for the pay in lieu of PTO.

7.6.4 The check/direct deposit will be received at the time of the next paycheck cycle.

7.6.5 There will be no OPERS deductions and the employee will not receive

retirement credit for the payment.

7.6.6 The employee and manager/supervisor are responsible for notifying Human Resources whenever PTO is being paid in lieu of time off by submitting a completed Request for Pay in Lieu of PTO Form.

PTO





6

8.0 PTO Bank Balance

The employee will be allowed a maximum PTO bank of 50 days, measured as of the end of the respective calendar year. After an employee has earned 50 days of PTO, additional PTO stops accruing until the PTO bank is below the 50 day maximum.

9.0 Reference Documents and Paperwork

9.1 PTO Carry Over Request Form 9.2 Request for Pay in Lieu of PTO Form

April 2019

BRIEFING ITEM – MONTHLY FINANCIAL REPORTS – AS OF MARCH 31ST, 2019


• Operational Excellence RECOMMENDATION This is a briefing item. No action is required at this time.

BUSINESS PURPOSE

• As part of the monthly closing of the general ledger, the Accounting Department prepares various financial reports.

• One of the key reports is the Statement of Revenues and Expenses, also known as an Income Statement.

• This report gives summary information about how actual SORTA revenues and expenses in the newly closed month (as well as calendar year-to-date) compare with budgeted and prior year values.

• A separate Executive Summary is also prepared to give narrative descriptions behind

key favorable and unfavorable actual results compared with budget values.

• Attached are Monthly Financial Reports for SORTA and the Connector as of March 31st, 2019.

SUBMITTED BY:

David A. Riposo CFO/Sr. Vice-President, Finance

Attachments: Executive Summary

Financial Report

SOUTHWEST OHIO REGIONAL TRANSIT AUTHORITY

Monthly Financial Report Executive Summary

March 2019 SORTA’s financial report for the month ending March 31, 2019 is attached. • Total Revenue of $8.2 million was favorable to budget by $139,000 or 1.7%.

• Total Expense of $8.5 million was unfavorable to budget by $(51,000) or (0.6%);

o Operations expense of $7.3 million was 89.7% of revenue; and o Selling, General & Administrative (SG&A) expense of $1.2 million was 14.6% of revenue. o Depreciation expense of $1.1 million was incurred but not included in the budgeted expense figures.

• Result was a net unfavorable variance before reserves and prior year surplus of $(350,000) in the month of March.

• Budgeted reserves of $234,000 and prior year surplus of $204,000 were used in the month.

• The final result was a net favorable variance of $87,000 for the month and favorable variance of $295,000 year to date.

Below is a summary of the most significant factors driving the results for March:

• Fare Revenue: Favorable to budget by $144,000 or 10.1% primarily due to quarterly deferred income adjustment from expired passes that was favorable to budget by $68,000 and favorable fare price of $85,000. The favorable Metro fare revenue of $145,000 resulted in a farebox recovery ratio of 18.9% which was favorable to budget by 1.7%.

• Non-Transportation Revenue: Unfavorable to budget by $(9,000) or (6.0%) due to unfavorable advertising revenue of $(16,000) and parking lot revenue of $(24,000), partially offset by favorable investment income of $17,000 and a $16,000 refund for property taxes paid in 2014.

• Employee Wages: Wages from Operations were unfavorable to budget by $(4,000) or (0.1%). SG&A wages were favorable to budget by $2,000 or 0.4%.

• Employee Benefits: Benefits from Operations were favorable to budget by $14,000 or 0.8%. Benefits from SG&A were favorable $18,000 to budget or 7.5%. The favorable results in both Operations and SG&A are primarily due to the timing of the medical cost in the budget.

• Parts & Supplies: Unfavorable to budget by $(60,000) or (12.1%) due to unfavorable revenue vehicle parts of $(60,000).

• Services: Favorable to budget by $87,000 or 20.9% due to favorable Outsourced Building Maintenance of $44,000, Security of $16,000 and Legal expense of $22,000.

• Casualty & Liability: Unfavorable to budget by $(55,000) or (61.3%) due to additional recorded claims reserves.

• Salary Headcount: There were 12 open positions at the end of March.

Three Months Ended 03/31/2019

Prior Yr

Actual

Fixed Route Ridership (9,307) (0.9%) (20,023) (0.6%) 3,344,689 Access Ridership (196) (1.0%) 297 0.5% 56,006

Total Ridership (9,503) (0.9%) (19,726) (0.6%) 3,400,695

Farebox Recovery Ratio (1) 18.1%

Dollars % Rev Dollars % Rev $ % Dollars % Rev Dollars % Rev $ % $

FaresMetro Fares (2) $ 1,491 18.3% $ 1,346 16.8% $ 144.6 10.7% $ 4,102 17.0% $ 3,915 16.4% $ 187.7 4.8% $ 4,135 Access Fares 81 1.0% 81 1.0% (0.9) (1.0%) 232 1.0% 232 1.0% 0.5 0.2% 232

Total Fares 1,571 19.3% 1,428 17.8% 143.7 10.1% 4,334 18.0% 4,146 17.4% 188.2 4.5% 4,367

CPS Contract Revenue 714 8.7% 715 8.9% (0.8) (0.1%) 2,374 9.9% 2,383 10.0% (8.2) (0.3%) 2,477Non-Transportation Revenue (3) 149 1.8% 158 2.0% (9.4) (6.0%) 502 2.1% 506 2.1% (4.3) (0.9%) 475

2,434 29.8% 2,301 28.7% 133.5 5.8% 7,211 30.0% 7,035 29.5% 175.7 2.5% 7,319

Transit Fund Receipts 4,147 50.8% 4,147 51.7% 0.0 0.0% 11,936 49.6% 11,936 50.0% 0.0 0.0% 12,665Federal Cash Grants 1,338 16.4% 1,338 16.7% 0.0 0.0% 4,191 17.4% 4,191 17.6% 0.0 0.0% 4,158State & Other Subsidy Revenue (4) 243 3.0% 238 3.0% 5.3 2.2% 727 3.0% 711 3.0% 16.3 2.3% 711

5,728 70.2% 5,723 71.3% 5.3 0.1% 16,854 70.0% 16,838 70.5% 16.3 0.1% 17,534

8,162 100% 8,023 100.0% 138.7 1.7% 24,066 100.0% 23,874 100.0% 192.0 0.8% 24,852

Wages 3,594 44.0% 3,590 44.7% (4.3) (0.1%) 10,183 42.3% 10,283 43.1% 99.7 1.0% 10,085Employee Benefits 1,762 21.6% 1,776 22.1% 14.4 0.8% 5,593 23.2% 5,644 23.6% 50.1 0.9% 5,343Fuel & Lubricants 430 5.3% 440 5.5% 10.2 2.3% 1,201 5.0% 1,255 5.3% 53.9 4.3% 1,350Parts & Supplies 538 6.6% 463 5.8% (74.3) (16.0%) 1,507 6.3% 1,387 5.8% (119.3) (8.6%) 1,305Purchased Transportation 609 7.5% 596 7.4% (12.7) (2.1%) 1,738 7.2% 1,720 7.2% (18.2) (1.1%) 1,615Services 37 0.5% 134 1.7% 97.1 72.5% 321 1.3% 381 1.6% 60.1 15.8% 314Utilities 138 1.7% 110 1.4% (27.3) (24.7%) 333 1.4% 349 1.5% 16.0 4.6% 315Casualty & Liability 145 1.8% 90 1.1% (55.2) (61.3%) 428 1.8% 270 1.1% (157.7) (58.4%) 458Taxes & Leases 61 0.7% 67 0.8% 6.1 9.0% 194 0.8% 210 0.9% 16.0 7.6% 214Other (5) 6 0.1% 7 0.1% 1.4 20.4% 7 0.0% 21 0.1% 13.8 65.1% 4

7,319 89.7% 7,274 90.7% (44.4) (0.6%) 21,506 89.4% 21,520 90.1% 14.4 0.1% 21,001

Wages 537 6.6% 539 6.7% 2.2 0.4% 1,551 6.4% 1,563 6.5% 12.0 0.8% 1,532Employee Benefits 222 2.7% 240 3.0% 17.9 7.5% 665 2.8% 695 2.9% 29.8 4.3% 661Parts & Supplies 23 0.3% 36 0.5% 13.8 37.9% 76 0.3% 71 0.3% (5.3) (7.5%) 48Services 292 3.6% 282 3.5% (10.1) (3.6%) 741 3.1% 801 3.4% 60.2 7.5% 842Utilities 17 0.2% 15 0.2% (2.4) (15.6%) 46 0.2% 45 0.2% (0.3) (0.7%) 46Taxes & Leases 41 0.5% 61 0.8% 19.2 31.7% 124 0.5% 182 0.8% 58.0 32.0% 105Other (5) 61 0.7% 13 0.2% (47.6) (357.9%) 133 0.6% 68 0.3% (65.5) (96.2%) 199

1,194 14.6% 1,187 14.8% (6.9) (0.6%) 3,336 13.9% 3,425 14.3% 88.9 2.6% 3,433

8,513 104.3% 8,461 105.5% (51.3) (0.6%) 24,842 103.2% 24,945 104.5% 103.3 0.4% 24,434Use of Prior Year Reserves 234 2.8% 234 2.8% 0.0 0.0% 701 2.9% 701 2.9% 0.0 0.0% 74Use of Prior Year Surplus 204 2.5% 204 2.5% 0.0 0.0% 371 1.5% 371 1.6% 0.0 0.0% 0

$ 87 1.1% $ 0 0.0% $ 87.4 $ 295 1.2% $ 0.0 0.0% $ 295 $ 492

Depreciation Expense $ 1,140 14.0% $ 3,420 14.2% $ 2,564

1,079,646 1,070,339

3,247,832 3,228,106 1,099,193 1,089,690 55,655 55,952 19,547 19,351

Surplus (Deficit)

Notes:(1) Farebox Recovery Ratio = Metro Fares Revenue / (Total Expenses less Purchased Transportation Expense); Full Year Budgeted Farebox Recovery Ratio is 19.1%(2) Metro Fare Revenue includes Regular Fares & Passes, Fare Deal, and Special Program Fares(3) Non-Transportation revenues include advertising, investment income, parking revenue, warranty recoveries & fee SORTA receives from the City to manage the streetcar.(4) Other Subsidy Revenue includes county contracts, and payments from 5/3 Bank, Duke Energy, UC and Cincinnati State.(5) Other includes advertising, training, dues and subscriptions, travel and incentive fares.(6) Full year 2019 Budget: Operating Expense @ 85.1% of Revenue & SG&A @ 14.9% of Revenue.

Total SG&A (6)

Total Expenses

Selling, General & Administrative

Total Cost of Operations (6)

Total Revenue

Cost of Operations

Subtotal Subsidy Revenue

Subsidy Revenue

Subtotal Operating Revenue

RevenueOperating Revenue

VarianceFav/(Unfav)

Profit & Loss StatementDollars In Thousands

Current Month Year To Date

Actual BudgetVariance

Fav/(Unfav)Actual Budget

3,192,177 3,172,154

0.9%18.9% 17.1% 1.7% 17.8% 16.9%

SOUTHWEST OHIO REGIONAL TRANSIT AUTHORITY

CINCINNATI BELL CONNECTOR

MONTHLY FINANCIAL REPORT

EXECUTIVE SUMMARY

MARCH, 2019

The Cincinnati Bell Connector financial report for the month ending March 31, 2019 is attached.

Total Revenues were $279,187 which is unfavorable to budget by $70,248 or 20%.

Total Expenses were $342,512, which is favorable to budget by $6,923 or 2%.

March income is unfavorable to budget by $63,325.

Year to date income is unfavorable to budget by $28,945.

A favorable adjustment from prior months to the Transdev Contract Expense of $57,978, a favorable

adjustment from prior months to TVM Maintenance of $52,898, and an unfavorable adjustment from

prior months to Direct Costs – Police Detail of $228 are reflected in the year to date results.

Below is a summary of the most significant factors driving results for the month:

Ridership: Unfavorable by 1,773 or 5% for the month.

Fare Revenue: Unfavorable by $5,052 or 18% for the month due to actual fare revenue per ride of

$0.65 compared with budget fare revenue per ride of $0.76.

Connector Advertising: Unfavorable by $64,220 or 94% for the month due to advertising contracts

below budgeted expectations.

Southwest Ohio Regional Transit Authority

Cincinnati Bell ConnectorYear to Date Financial ReportAs of March 31, 2019

Curr Mo

Actual

Curr Mo

Budget

YTD

Actual

YTD

Budget

Ridership 35,481 37,254 (1,773) -5% 345,188 371,359 (26,171) -7%

FaresRegular Fares & Passes $23,161 $28,213 ($5,052) -18% 225,356 $281,233 (55,877) -20%Charter Service 0 0 0 - 4,050 0 4,050 -

Total Fares 23,161 28,213 (5,052) -18% 229,406 281,233 (51,827) -18%

Other RevenueCity Parking Meter Contribution, (Net of City Overhead Expense) 78,693 78,693 0 0% 708,239 708,239 0 0%City Appropriated Surplus Parking 51,619 51,619 0 0% 531,854 531,854 0 0%Haile Foundation 75,000 75,000 0 0% 675,000 675,000 0 0%Tax Incentive Policy (VTICA) 10,834 10,834 0 0% 97,500 97,500 0 0%Federal Formula Funding 16,103 16,103 0 0% 209,336 144,924 64,412 44%Connector Advertising 3,836 68,056 (64,220) -94% 50,707 445,836 (395,129) -89%Naming Rights 19,941 20,917 (976) -5% 194,530 188,253 6,277 3%

Total Fares and Other Revenue 279,187 349,435 (70,248) -20% 2,696,572 3,072,839 (376,267) -12%

ExpensesTransdev Contract 289,894 289,894 0 0% 2,303,852 2,580,619 276,767 11%SORTA Management Fee 23,192 23,192 0 0% 206,452 206,452 0 0%Direct Costs 29,426 36,349 6,923 19% 215,213 285,768 70,555 25%

Total Expenses 342,512 349,435 6,923 2% 2,725,517 3,072,839 347,322 11%

NET INCOME / (DEFICIT) ($63,325) $0 ($63,325) (28,945) $0 (28,945)

Month Variance

Fav / (Unfav)

YTD Variance

Fav / (Unfav)

April 2019 In the spotlight: This month, I want to recognize the work done by our Access and Fare Deal departments with an assist from Mary Moning. They recently undertook the monumental task of issuing newly designed cards to our more than 6,000 Fare Deal customers, plus they made several improvements to the program to make it more convenient for our customers to get their monthly stickers and renew their cards. Thank you! Maintenance achieves major milestones: Our Maintenance teams from Bond Hill and the Storerooms both achieved remarkable records recently: they completed the entire year of 2018 without an accident. Our Queensgate Maintenance team also completed 2018 without any lost-time accidents. Congratulations to all for their commitment to safety. Marketing update: The External Affairs team has been busy this past month planning these new marketing campaigns:

• National Get on Board Day – April 25 is the day set aside by the American Public Transportation Association (APTA) to encourage everyone to get on board the bus or support the role public transportation plays in driving economic vitality in our region. In celebration, our Marketing team is taking a specially decorated Metro vehicle out to surprise our riders at selected bus stops with prizes, free ride tickets and fun.

• Digital marketing campaign – Our “You Should Be Riding the Bus” campaign got a digital makeover this month with ads popping up on Facebook, Twitter, Instagram, Snapchat and many other popular social media platforms as we continue to tout the many things you can do when you let Metro do the driving. This campaign runs for eight weeks.

• Riding is believing – At the same time, we just launched a six-week digital and radio campaign targeted to non-riders. Called “Riding is Believing,” it provides an overview of benefits of riding the bus, including saving money, being more productive and helping clean the air. The centerpiece is a contest whereby Metro is giving away $30 stored-value cards to entrants who pledge to become “believers” by riding the bus. We received more than 70 entries in the first week; one of the first week’s winners emailed us the following: “I’ve been considering trying a car free week. Looking forward to it. Thanks.”

Way to Go365: Go365 is a wellness program designed to reward members for their healthy habits. I’m very pleased to say that our enrollment in this important program has increased from 18 to (drum roll please) over 200 members, thanks in large part to the efforts of Interim COO John Ravasio, VP of HR Adriene Hairston and the leadership team of the ATU. Healthy employees are happier employees and Go365 is a great way to achieve both.

Moving up and on: Let’s send our congratulations to Mark McEwan, who was recently promoted to division manager at the Queensgate garage. Best wishes also to Ted Meyer, who is retiring June 30 after 37 years in the Service Planning and Scheduling department. In his tenure at Metro, Ted has been involved in many major service initiatives, and he will certainly be missed.

Measure it to manage it: We are now posting our key performance indicators (KPIs) in every workplace so employees can better understand the role they play in serving our customers and so we can all track how we’re doing in achieving our objectives. Everyone loves a parade: Metro’s Hydi the Hybrid mini-bus was in the Findlay Market Association Opening Day parade on Thursday, March 28. Look for the next Hydi sighting in the Cincinnati Pride Parade on Saturday, June 22. Outreach season is almost here: The onset of warmer weather means Metro will start showing up at community events throughout our service area. Here are just a few of the places you’ll see Metro in the coming months:

• May 3-5 – CincyCinco Festival on Ft. Square • May 27 – Evanston Memorial Day parade • June 15-16 – Cincinnati Juneteenth Festival in Eden Park • June 22 – Cincinnati Pride Festival at Sawyer Point • July 4th – Northside 4th of July parade • August 16-18 – Midwest Black Family Reunion at Sawyer Point

If you have any questions, please call me at (513) 632-7690.

Darryl Haley Interim CEO/General Manager

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