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WAVE Agenda Packet 12 18 14
Cape Fear Public Transportation Authority A regularly scheduled meeting of the Cape Fear Public Transporta Thursday, December 18, 2014 at 12:00 pm in the Wave Transit Board Room at Forden Station, 505 Cando St., Wilmington, NC 28405. An agenda for the meeting is presented below. MEETING AGENDA 1)Call to Order 2)Moment of silence 3)Pledge of Allegiance 4)Public Comment Period 10 minutes 5)Introduction of NCDOT apprentice 6)Consent agenda 10 minutes 1.Approval of minutes from the November 20, 2014 regular meeting (p. 2.NCDOT Public Transportation Grant Agreement (p. 3.2015 Meeting Schedule (p. 4.Updated Grant Management Procedures (p. 5.Purchase order for bus shelters 7)Fiscal Year 2014 Independent Auditors Report Mr. Gary Ridgeway, CPA, McGladrey, LLP 8)Committee Reports 30 minutes Executive Committee, Mr. Jeff Petroff, Chairman Authority Attorney Request for Proposal (RFP) Facility legal issues discussion (pursuant to NCGS § 143-318.11(3) this item may be discussed in closed session) Planning & Operations Committee, Mr. Andrew Koeppel, Chair November 2014 operating & statistical reports (p. Finance & Budget Committee, Mr. Bill Bryden, Chair November 2014 financial statement (p. Facilities Committee, Mr. Jeff Petroff, Chair Operations center update (p. 9)Staff report State funding Federal fiscal year 2015 update 10)New business 05 minutes 11)Old business 05 minutes 12)Adjournment Authority administrative offices will be closed on Wednesday, December 24, 2014 and Thursday, December 25, 2014 in observance of the Christmas holiday. Bus service will operate a normal schedule on December 24, 2014. No bus service will be provided on December 25, 2014. Authority administrative offices will be closed and no bus service will be in observance of Martin Luther King, Jr. Day. CFPTA Agenda Packet 12/18/20141 The next regular meeting of the Authority is scheduled for Thursday, January 22, 2015 at 12:00 pm in the Forden Station Board Room CONSENT AGENDA The following items are attached for consideration. A brief exp follows: 1)Approval of minutes from November 20, 2014 regular meeting (p. 3) 2)NCDOT Public Transportation Grant Agreement (p. For consideration is NCDOT Grant 15-NF-052 in the amount of $1,314,424 from the states allocation of federal New Freedom funding. A CNG bus is include $460,000. State and local funding of $46,000 is a requirement o City of Wilmington was allocated in the citys FY 2015 budget. Operating funds for route 201 are included as part of the agreement. Fifty percent local matching project from the Authoritys FY 2015 budget for one half the amo funds will be allocated in the FY 2016 budget. Approval of the agre 3) 2015 Meeting Schedule (p. The 2015 meeting calendar has been drafted and is included for a keeps with the Authoritys schedule of meeting the fourth Thursday of each month with the exception of November and December. An April 23, 2015 retreat h schedule. Adoption of the schedule is recommended. 4) Updated Grant Management Procedures (p Following the Authoritys 2014 FTA Triennial Review, Federal Tra its grant management procedures to ensure full compliance. The are intended to better track project line items and ensure proper reporting of unliquidated obligations. Approval of the updated procedures is recommended. 5) Purchase Order for Bus Shelters The Authority has allocated funding in its FY 2014 FTA §5339 all installation of passenger waiting shelters. Following issuance of a request for proposals (RFP) the Authority received competitive bids for the purchase of pre-fabricated shelters from two bidders. A bid tab is enclosed. Brasco Mfg. was the lowest responsive biddll purchase and install twelve shelters in line with the Bus Shelte be purchased from the grant once engineering and installation co the amount of $16,488 has been allocated by the City of Wilmington in their FY 2015 budget. Approval of the purchase order is recommended. CFPTA Agenda Packet 12/18/20142 Cape Fear Public Transportation Authority MINUTES OF THE CAPE FEAR PUBLIC TRANSPORTATION AUTHORITY November 20, 2014 Mr. Jeff Petroff, Chairman, Presiding MEMBERS PRESENT Mr.Jeff Petroff, Chairman Mr.Don Betz, Secretary Mr. Jonathan Barfield Mr.Bill Bryden Mr.Samuel Grundman Mr.Steven Kelly Mr.Andy Koeppel Mr.Kevin O’Grady, Vice Chairman Mr.Rick Richards Mr.Beck Smith MEMBERS ABSENT Mr.Euran Daniels STAFF PRESENT Mr.Albert Eby, Executive Director Mr. Joe Mininni, Director of Finance & Administration Ms.Jean Smith, Director of Operations Ms.Kathy Williams,Board and Customer ServiceClerk CONTRACT MANAGEMENT STAFF PRESENT Ms. AileenWu Viorel,Olsen Elder Law Firm, Attorney Mr.Chris Greenman, Fixed Route OperationsManager Mr.Jeremy Miller, Fixed Route Maintenance Manager Mr.Rudy Liddell, Fixed Route Operator GUESTS PRESENT Ms. Lynn Heim, Budget Director, City of Wilmington Ms.Connie Knox, Rotary Club Cape Fear Mr.Johnnie Lewis, Citizen Ms.Lynn McIntyre, Citizen Ms.Anne K. Ryan, Citizen CALL TO ORDER Mr. Petroffcalled the meeting to order at 12:01 pm The board meeting began with a moment of silence followed by reciting the Pledge of Allegiance RECOGNITIONS Mr. Petroff recognized incoming board member Mr. Richards, and welcomed him to the Authority Mr. Richardsprovided the board with a brief bio and stated he was looking forward to serving on the board Mr. Petroffrecognized Mr. Eby forpresentation ofthe Operator Safety Award CFPTA Agenda Packet 12/18/20143 Mr. Eby recognized Mr. Greenmantopresent Mr. Liddell with a safety pin, award certificate and a gift card for five years of safe driving Mr. Petroff recognized Mr. Eby who introduced Ms. Connie Knox, representative from the Rotary th Club Cape Fear, for sponsorship of amenities at the bus stop located at 5St. and Meares St. Mr. EbythankedMs. Knox for the Rotary Club Cape Fear’s donation of a bench and trash receptacleat Fifth and Meares Ms. Knox gave a brief overview of the Rotary Club Cape Fear and their decision to sponsor this project Ms. Knox stated the Rotary Club Cape Fear is willing to help with more bus stop amenities Mr. O’Grady stated City Council approved the local match for a grant that would fund a bus pull- out at the location of Shipyard Blvd. and Carolina Beach Rd. PUBLIC COMMENT Mr. Petroffopened the public comment period Mr. Lewis stated he is thankful for all that the Authority has doneandfor the extra stops installed along Route 301 Mr. Lewis stated he is concerned about the lack of cleanliness of the buses Mr. Lewis stated the inside and outside of the buses is dirty and he has contacted staff concerning thematter Hearing no further comments, Mr. Petroff closed the public comment period CONSENT AGENDA Mr.Petroffpresented theNovember2014consent agenda for approval Mr. Betz requested item 2 be pulled for discussion Mr. O’Grady requested item 6 be pulled for discussion Mr. Eby made a correction toitem 5 Mr. Eby stated that vendor in item 5 is listed as Clark Power Services; however, the vendor should be listed as CumminsAtlantic The amount of the PO was unchanged Mr. Betzmade a motion to accept items 1, 3, 4, 5as amended, and 7 of theNovember2014 consent agenda Mr. Bryden seconded the motion andthe motion carried Mr. Betzhad a question regarding the price difference in the change order for the light transit vehiclein item 2 Mr. Eby stated that adding a CNG light transit vehicle at this time will give the opportunity to utilize the CNG fueling station system at the new facility He stated he has already spoken with FTA regarding the provisionalbudget change Mr. Betz made a motion to accept item 2 as amended Mr. O’Grady seconded the motion and the motion carried Mr. O’Grady’s expressed concern for the languageusedfor the general release of claimfor item 6 Ms. Wu Viorel stated she would discuss thelanguagethat was used for the general release of claimwith the surety company’s attorney and report back before execution Mr. O’Grady made a motion to accept item 6 as amended Mr. Betz seconded the motion andthe motion carried METROPOLITAN PLAN UPDATE Due to a scheduling conflict, Mr. Petroff stated that the long range transportationplan update would be rescheduled for a future meeting CFPTA Agenda Packet 12/18/20144 EXECUTIVE COMMITTEE Mr. Petroff stated that the report was being moved to the end of the committee reports to discuss the operations facility project in closed session PLANNING& OPERATIONS COMMITTEE Mr. Petroff recognized Mr. Ebytopresentthe committee report Mr. Eby stated that ridership increased 8.12% in the month of October2014 as compared to October 2013 He noted an increase in UNCW ridership Mr. Eby stated the Authority has received roughly $40,000 in advertising revenue for calendar year 2014 FINANCE & BUDGET COMMITTEE Mr. Petroffrecognized Mr. Bryden to give the committee report Mr. Bryden referenced the new Authority Member Handbookand stated that the financial information was very thorough and provided an excellent overview of the Authority’s financial structure Mr. Brydenstatedthe adopted budget for FY 2014 is compliant and revenues exceed expenses due largely to lower than expected fuel costs Mr. Bryden stated the NCDOT releasedSMAP allocations for the current fiscal year and the amountis approximately $75,000below the anticipated and budgeted amount Since SMAP funding is used as local match to leverage federal funds, the impact could be as much as $150,000 but the impact is not expected to be that dramatic Mr. Koeppel suggestedthe Authority send a letter to the legislature outliningconcerns and illustrating how the existing policies are affecting the Cape Fear Public Authority Mr. Barfield asked if the allocation could be challenged Mr. Eby stated that the funds were formula allocated They were lower due to a smaller allocation in the state budget as well as additional communities becoming eligible for SMAPfunding by implementing new transit systems Mr. Eby stated the Authorityshould reach out tothe NC General Assembly to communicate the importance of state funding for public transportation He stated that the NC Public Transportation Association was ramping up its legislative efforts for the 2015 long session but faced a General Assembly that was not overly supportive of transit Mr. Bryden stated Carolina Beach Town Councilprovided$8,500 towards transportation service for Route 301that was not included in the budget He said the Authority received the City’s allocation of the fund balance, but the County is holding funds until they receive a complete audit report Mr. Bryden stated the Authority hasrequested a $400,000 line of credit from the City due to expenses from construction of the new facility Mr. O’Grady reminded the audience that the issue was cash flow and not budget related and that the system is under the adopted budget for FY 2015 FACILITIES COMMITTEE Mr. Petroff recognized Mr. Eby topresent the committee report Mr. Eby referenced pictures of the facility that were displayed on the screen Mr. Ebystated the new facility is near completion Mr. Petroff presented approved changes from the committee to the contract with Clancyand Theyscontractand for equipmentin the amount of $55,908 The change orders were within the project contingency and the equipment was included in the adopted project budget CFPTA Agenda Packet 12/18/20145 Mr. Petroff stated a scissor lift was recommendedto providestaff safe access to high areas of the buildingand vehicles No second was needed and the motion carried EXECUTIVE COMMITTEE Mr. Petroff presented the committee report Mr. Petroff stated new appointments to both thePlanning and Operations Committee and Finance Committeeneed tobe made He appointed Mr. Grundman to the Planning Committee and stated that Mr. Koeppel had agreed to Chair the Planning Committee He stated the Town of Leland expressed interest in serving on committees and directed staff to reach out to the Town for consideration Mr. O’Grady made a motion to enter into closed session pursuant to NCGS 143-318.11(3) Mr. Smith seconded the motion and the motion carried The Authority entered closed session at 12:50 pm to discuss the operations facility project with legal counsel Following a twenty-five minute closed session, Mr. Petroffmade a motion to enterinto open session Mr. Betz seconded the motion which carried unanimously Mr. Petroff stated that no business was taken during the closed session and none would be considered as a result of the closed session Mr. Petroff recognized Mr. Eby to presentthe Operations Center Counsel letter of engagement and contract with Crouch, Block Crouch, Keeter, Behm and Sayer, LLP Mr. Eby stated that the initial engagement and notto exceed fee was $8,500 for construction legal services Mr. Eby stated that the Authority has requested mediation regarding radiant flooring heating issues and the proposed fee through mediation was estimated not to exceed an additional $10,000 Mr. Eby said there is sufficient funding in the project contingency to cover the additional legal costs Mr. Bryden made a motion for the approval to add, but not to exceed, an additional $10,000 to Block, Crouch, Keeter, Behm & Sayed, L.L.P. Mr. Betz seconded the motion andthe motion carried STAFF REPORT Mr. Petroffrecognized Mr. Eby to present the staff report Mr.Eby stated he went to the Gillig plant for a pre-production meeting regarding two new CNG buses Mr. Eby stated the CNG buseswill begin production on May 05,2015 Mr. Eby stated that delivery would be in late May or early June of 2015 NEWBUSINESS Mr. Eby stated the Authority experienced a major phone systemoutage earlier in theweek The current telecom provider has recentlyclosed their Wilmington office and was servicing the area from Raleigh He stated that since a local technician was critical to the Authority’s phone system uptime, a new local Telecom provider would be under contract when the operations center opens OLDBUSINESS Mr. Petroff stated that buscleanliness must be madea priorityas itis a reoccurring issue CFPTA Agenda Packet 12/18/20146 Mr. Eby stated that staff would continue to press the issue with First Transit and reach out to the Area Vice President to relay the serious nature of bus cleanliness Mr. Eby stated that the 2015 meeting schedule would be presented for consideration at the December meeting and asked members to consider a date and time for a retreat in March or April Mr. Koeppel stated that the date of the next meeting on the agenda should be corrected to December 18, 2014 ADJOURN Mr.Betzmade a motion to adjourn the November 20, 2014board meeting Mr. Smithseconded the motion and the motion carried SCHEDULING OF NEXT MEETING The Authority’s next meetingis scheduled for December 18, 2014at 12:00 pm in the Forden Station Board Room Respectfully Submitted, AlbertEby Executive Director /kw/mm CFPTA Agenda Packet 12/18/20147 SNC TATE OF ORTH AROLINA DT EPARTMENTOFRANSPORTATION PMCAJ.T AT CRORYNTHONY ATA GS OVERNORECRETARY November 20, 2014 Mr. Jeffrey Petroff, Chairman Cape Fear Public Transportation Authority Post Office Box 12630 Wilmington, North Carolina 28405-0130 RE: FY15 New Freedom Program (Section 5317) Project No. 15-NF-052 WBS Element No(s). 51000.6.3.4 (Cap) 51000.6.3.3 (Cap II) 51000.6.3.2 (Oper) Agreement No.(s) TBD Period of Performance: 7/1/14 6/30/15 Dear Mr. Petroff: OnMarch 6, 2014 and August 7, 2014, the Board of Transportation approved your for a FY15 5317 New Freedom grant in the amount of $876,139. The agreement to be executed between Cape Fear Public Transportation Authority and NCDOT is enclosed. The individual authorized to enter into this agreement for the financial assistance on behalf of your agency will sign the agreement. Please provide a copy of the agreement to all parties that will be involved in the administration of the grant, and request that the agreement be reviewed carefully. Instructions for completion of the grant agreement process are enclosed. Please refer to Section 8 of the grant agreement that requires sub-recipients to submit monthly or quarterly requests for reimbursement. If you have any question related to the grant agreement, please contact Charlie Wright, Financial Manager at 919-707-4674 or your assigned Accounting Specialist. In any correspondence, please reference your assigned project number, WBS element, Agreement number and period of performance referenced on this letter. Sincerely, Debbie Collins Director RW\cw Attachments cc: Mr. Joe Mininni, Director of Finance & Administration MAILING ADDRESS:LOCATION: T: 919-733-4713 ELEPHONE NCDOT FAX: 919-733-2304 TB EPARTMENT F RANSPORTATIONRANSPORTATION UILDING PTD 1SWS UBLIC RANSPORTATION IVISION OUTH ILMINGTON TREET 1550MSC R NC .. AIL ERVICE ENTERALEIGH WWWNCDOTGOV R, NC 27699-1550 ALEIGH CFPTA Agenda Packet 12/18/20148 STATE OF NORTH CAROLINA NONURBANIZED AREA COUNTY OF WAKE PUBLIC TRANSPORTATION GRANT AGREEMENT FOR PUBLIC BODY NORTH CAROLINA NEW FREEDOM DEPARTMENT OF TRANSPORTATION PROGRAM SECTION 5317 andCFDA NUMBER: 20.521 CAPE FEAR PUBLIC TRANSPORTATION PROJECT NUMBER: 15-NF-052 AUTHORITY **************************************************************** THIS AGREEMENT made this the day of , 20 , (hereinafter referred to as AGREEMENT) by and between the NORTH CAROLINA DEPARTMENT OF TRANSPORTATION (hereinafter referred to as "Department", an agen CAPE FEAR PUBLIC TRANSPORTATION AUTHORITY Carolina) and , (acting in its capacity as the designated Section 5317 recipient hereinafter referred to as the "Contractor"). WHEREAS, Chapter 53 of 49 U.S.C. app 5317 et seq. provides fede operating, and capital assistance for public transportation in r of a formula grant program to be administered by the State; and WHEREAS, the purpose of 49 U.S.C. 5317 is to provide new public transportation services and public transportation alternatives beyond those req Disabilities Act (ADA), including transportation to and from job services 49 U.S.C. 5317; and WHEREAS, the Contractor has been designated as the recipient of5317 funds; and WHEREAS, 49 U.S.C. 5317 (D) requires that projects selected for locally developed, coordinated public transit-human services tra WHEREAS, Article 2B of Chapter 136 of the North Carolina Genera designated the Department of Transportation as the agency of the responsible for administering all Federal and/or State programs and granted the Department authority to do all things required u State legislation to properly administer the public transportati Carolina; and WHEREAS, the Governor of North Carolina, in accordance with Sec Accountable, Flexible, and Efficient Transportation Equity Act - st LU), Public Law 109-59, August 10, 2005, and the Transportation Century (TEA-21), Public Law 105-178, September 2007, as amended, has de Carolina Department of Transportation as the agency to receive a under this program; and WHEREAS, in order to assist in providing transportation service the terms of this Agreement shall make grants of operating and c Contractor to support new public transportation services beyond Americans with Disabilities Act of 1990 (ADA) WHEREAS, the Department shall make grants to support new public alternatives beyond the ADA that include the cost associated wit WHEREAS, the Department and the Contractor desire to secure and5317 grant funds and State funds for the above referenced purposes. NOW, THEREFORE, in consideration of the mutual covenants herein Department and the Contractor agree as follows: 1of 42 Revised 02/21/13 Page CFPTA Agenda Packet 12/18/20149 Section 1. Purpose of Agreement. The purpose of this Agreement is to encourage services and facility improvements to address the transportation needs of beyond those required by the Americans with Disabilities Act as application (hereinafter referred to as "Project") properly prep transmitted by the Contractor to the Department, and to state th undertakings of the parties as to the manner in which the Projec completed. Section 2. Project Implementation. The Contractor agrees to carry out the Project in the Project Budget, a copy of which is attached hereto and incorporated here in accordance with the requirements of this Agreement and all ap The Project, which is described in more detail in the plans, spe forth in the Grantees final approved application is generally de a. Scope of Project. provides low cost public transportation service to low income individuals in area where a significant percentage of the population has a disability is elderly or has an increased medical need. Paratransit service is also provided in this area; however, this fixed bus route provides additional service to individuals with disabilities who need to access one of the several medical facilities located along this route. A replacement 35-40ft bus, lettering and security cameras are requested. (BOT March 6, 2014) The Cape Fear Public Transportation Authority will use Section 5317 New Freedom Funds to design, purchase, and install eight (8) ADA accessible bus shelters along with the fixed route lines. (BOT AUGUST 7, 2014) . The Contractor shall undertake and complete the nonurbanized a transportation services in accordance with the procedures and gu Agreement and in the following documents: (1) Federal Transit Administration (hereinafter referred to a 9045.1, dated May 1, 2007, at: (www.fta.dot.gov/documents/FTA_circulars_9045.1_New.pdf)_; (2) FTA Master Agreement, dated October 1, 2013, Document Number FTA MA (20), at www.fta.dot.gov/documents/20-Master.doc; (3) The State Management Plan for Federal and State Transport Programs (hereinafter referred to as "State Management Plan"); (4) The Section 5317 grant application for financial assistan The Coordinated Public Transit Human Services Transportation Pla New Hanover County Coordinated Plan).for . The aforementioned documents, and any subsequent amendments or r herewith incorporated by reference, and are on file with and app accordance with the terms and conditions of this Agreement. Not the terms of this Agreement by the Department or the Contractor with Department, State, or Federal statutes, rules, or regulatio b. No Federal/State Government Obligations to Third Parties. In c performance of the Project, the Contractor agrees that, absent t express written consent, the Federal/State Government shall not or liabilities to any sub recipient, third party contractor, les not a party to this Agreement for the Project. Notwithstanding Government may have concurred in or approved any solicitation, s contract, the Federal/State Government has no obligations or lia any sub recipient, third party contractor, or lessee. 2of 42 Revised 02/21/13 Page CFPTA Agenda Packet 12/18/201410 The Contractor agrees to include the above clause in each subcon part with Federal assistance provided by FTA. It is further agre modified, except to identify the subcontractor who will be subje c. Changes in Project Performance (i.e., Disputes, Breaches, Def Contractor agrees to notify the Department immediately, in writi conditions (including its legal, financial, or technical capacit adversely affect the Contractor's ability to perform the Project the Project. The Contractor also agrees to notify the Departmen current or prospective major dispute, breach, default, or litiga Federal/State Government's interests in the Project or the Feder administration or enforcement of Federal/State laws or regulatio Department, also in writing, before naming the Federal or State litigation for any reason, in any forum. d. Limitations of Agreement. This Agreement shall be subject to t and State funds, and contingent upon the terms and conditions of between the FTA and the Department. Section 3. Project Budget/Cost of Project. The total cost of the Project approved by the ONE MILLION THREE HUNDRED FOURTEEN THOUSAND FOUR HUNDRED Department is TWENTY-FOUR DOLLARS ($1,314,424) as set forth in the Project Description and Budget, incorporated into this Agreement as Appendix A. The Department and State funds, the percentages of the actual net cost of the P excess of the identified amounts for eligible operating and capir hereby agrees that it will provide the percentages of the actual shares). The net cost is the price paid minus any refunds, reba received by the Contractor which have the effect of reducing the shall initiate and prosecute to completion all actions necessary of the Project costs at the time directed. All of the local mat other than federal funds. Capital Capital Capital Capital Capital WBS Total Federal (80%) State (0%) Local (20%) 51000.6.3.4 $116,424 $93,139 $0 $23,285 Agreement # CapitalII Capital II Capital II Capital II Capital II WBS Total Federal (80%) State (10%) Local (10%) 51000.6.3.3 $460,000 $368,000 $46,000 $46,000 Agreement # Operating Operating Operating Operating Operating WBS Total Federal (50%) State (0%) Local (50%) 51000.6.3.2 $738,000 $369,000 $0 $369,000 Agreement # Project Total Project Project Project Project Total Total Federal Total State Total Local $1,314,424 $830,139 $46,000 $438,285 Section 4. Period of Performance. This Agreement shall commence upon the date of execution, unless specific written authorization from the Depart 3of 42 Revised 02/21/13 Page CFPTA Agenda Packet 12/18/201411 July 1, 2014 to June 30, The period of performance for all expenditures shall extend from 2015Any requests ,unless written authorization to the contrary is provided by the to change the Period of Performance must be submitted 60 days before the end of the current Performance Period and in accordance with the policies and procedures established by the Department or FTA. The Contractor shall commence, carry on, and complete the approved Project with all practicable dispatch, in efficient manner. a. The Contractor agrees to maintain sufficient legal, financi capability to: (1) Plan, manage, and complete the Project; (2) Carry out the safety and security aspects of the Project; (3) Comply with the terms of this agreement, the Master Agreem FTA and the Department, the Approved Project Budget, the Project Federal and State laws, regulations, and directives. d. Administrative Requirements. The Contractor agrees to compl Federal and State administrative requirements: (1) U.S. DOT regulations, "Uniform Administrative Requirement Agreements with Institutions of Higher Education, Hospitals, and Non-Profit Organizations," 49 C.F.R. Part 19 at (http://www.access.gpo.gov/nara/cfr/cfr-table-search.html#page1) (2) Title 9 North Carolina Administrative Code (N.C.A.C.) Sub (http://reports.oah.state.nc.us/ncac.asp). (3) Title 19A N.C.A.C Subchapter 5B at (http://reports.oah.st e. Application of Federal, State, and Local Laws, Regulations, achieve compliance with changing federal requirements, the Contr state and local requirements may change and the changed requirem Agreement as required. f. Contractor's Primary Responsibility to Comply with Federal Requirements. Irrespective of involvement by any other participa agrees that it, rather than the participant, is ultimately respo applicable Federal and State laws, regulations, and directives, the FTA and the Department, and this Agreement, except to the ex determines otherwise in writing. Unless otherwise authorized in Contractor shall not assign any portion of the work to be perfor execute any contract, amendment, or change order thereto, or obl any third party with respect to its rights and responsibilities prior written concurrence of the Department. Further, the Contr provisions of this Agreement into any lease arrangement and shal arrangement without the prior concurrence of the Department. An Department shall be subject to the conditions or limitations gov the FTA and the Department. If the Contractor leases any Projec Contractor agrees to retain ownership of the leased asset, and a the Project asset to provide mass transportation service, either Supervisory Agreement" between the Contractor and Lessee, or ano Contractor agrees to provide a copy of any relevant documents. Section 6. Subcontractors and Lessees a. Significant Participation by a Third Party Contractor. Althoug enter into a third party contract, after obtaining approval from 4of 42 Revised 02/21/13 Page CFPTA Agenda Packet 12/18/201412 party contractor agrees to provide property or services in suppo out Project activities normally performed by the Contractor (suc Contractor agrees that it, rather than the third party contractor, Department for compliance with all applicable Federal and State directives, except to the extent that FTA or the Department det b. Significant Participation by a Subcontractor. Although the Cont may delegate any or almost all Project responsibilities to one o Contractor agrees that it, rather than the subcontractor, is ult with all applicable Federal and State laws, regulations, and dir FTA or the Department determines otherwise in writing. c. Significant Participation by a Lessee of a Contractor. Althe contractor may lease project property and delegate some or many or more lessees, the Contractor agrees that it, rather than any for compliance with all applicable Federal laws, regulations, an that FTA or the Department determines otherwise in writing. d. Contractor's Responsibility to Extend Federal and State Req Entities. (1) Entities Affected. Only entities that are signatories to Project are parties to this agreement. To achieve compliance wi laws, regulations, or directives, however, other Project partici party contractors, lessees, or other, will necessarily be involv agrees to take the appropriate measures necessary to ensure that comply with applicable Federal and State laws, regulations, and performance, except to the extent FTA or the Department determin addition, if an entity other than the Contractor is expected to performed by the Contractor, the Contractor agrees to assure tha (2) Documents Affected. The applicability provisions of Feder regulations, and directives determine the extent to which their participant such as a sub recipient, lessee, third party contrac agrees to use a written document to ensure that each entity part with applicable Federal and State laws, regulations, and directi Department determines otherwise in writing. In addition, the Co its third party contractors, sub recipients, and lessees to incl compliance with applicable Federal and State laws, regulations, subcontract , sub agreement, and lease for the Project, except t Department determines otherwise in writing. Additional requirem (a) Third Party Contracts. Because Project activities perfor party contractor must comply with all applicable Federal and Sta directives, except to the extent the Department determines other agrees to include appropriate clauses in each third party contra contractor's responsibilities under Federal and State laws, regu any provisions directing the third party contractor to extend ap subcontractors at the lowest tier necessary. When the third par party contractor to undertake responsibilities for the Project u Contractor, the Contractor agrees to include in that third party applicable to the Contractor imposed by the Grant Agreement for Agreement and extend those requirements throughout each tier exc determines otherwise in writing. Additional guidance pertaining y on third party 5of 42 Revised 02/21/13 Page CFPTA Agenda Packet 12/18/201413 procurement processes and may omit certain other Federal require to be performed. (b) Sub agreements. Because Project activities performed by subcontractor/ sub recipient must comply with all applicable Fed and directives except to the extent that FTA or the Department d the Contractor agrees as follows: 1 Written Sub agreement. The Contractor agrees to enter int written agreement with each sub recipient (sub agreement) statin assistance by which the Project will be undertaken and completed 2 Compliance with Federal Requirements. The Contractor agre to implement the Project in a manner that will not c Federal and State laws, regulations, and directives applicable t Therefore, the Contractor agrees to include in each sub agreemen directing the sub recipient to comply with those requirements ap imposed by this Agreement for the Project or the FTA Master Agre requirements as necessary to any lower level sub agreement or an each tier, except as FTA or the Department determines otherwise Section 7. Ethics. a. Code of Ethics. The Contractor agrees to maintain a written co conduct that shall govern the actions of its officers, employees engaged in the award or administration of third party contracts, financed with Federal/State assistance. The Contractor agrees t conduct shall specify that its officers, employees, board member nor accept gratuities, favors, or anything of monetary value fro party contractor, lessee, or sub recipient at any tier or agent when an employee, officer, board member, or agent, including any immediate family, partner, or organization that employs, or inte listed herein has a financial interest in the firm selected for minimis rules where the financial interest is not substantial, o nominal intrinsic value. The Contractor agrees that its code or its officers, employees, board members, or agents from using the manner that presents a real or apparent personal or organization personal gain. As permitted by State or local law or regulation code or standards of conduct shall include penalties, sanctions, violations by its officers, employees, board members, or their a contractors or sub recipients or their agents. 1. Gifts. N.C.G.S. § 133-32 and Executive Order 24, of October prohibit the offer to, or acceptance by, any State Employee of a contract with the State, or from any person seeking to do busine of this Agreement, Contractor attests, for its entire organizati that it is not aware that any gift in violation of N.C.G.S. § 133-32 and E been offered, accepted, or promised by any employees of Contract b. Conflict of Interest Policy. In accordance with N.C.G.S. 143-6. shall file with the Department a copy of Contractor's policy add may arise involving the Contractor's management, employees, and directors or other governing body. The policy shall address situ individuals may directly or indirectly benefit, except as the Co of its board or other governing body, from the Contractor's disb and shall include actions to be taken by the Contractor or the i 6of 42 Revised 02/21/13 Page CFPTA Agenda Packet 12/18/201414 conflicts of interest and the appearance of impropriety. The pol Department may disburse the grant funds. c. E-Verify Compliance. The contractor agrees that if it enters its sub-contractors comply with the requirements of NC Gen. Stat. words contractors, subcontractors pertaining to E-Verify complia intended by N.C. Gen. Stat. 160A-20.1. 1. Personal Conflicts of Interest. The Contractor agrees that its standards of conduct shall prohibit the Contractor's employees, agents from participating in the selection, award, or administra sub agreement supported by Federal/State assistance if a real or would be involved. Such a conflict would arise when an employee agent, including any member of his or her immediate family, partt employs, or intends to employ, any of the parties listed herein selected for award. 2. Organizational Conflicts of Interest. The Contractor agrees th standards of conduct shall include procedures for identifying an organizational conflicts of interest. An organizational conflic of the work to be performed under a proposed third party contrac without some restrictions on future activities, result in an unf third party contractor or sub recipient or impair its objectivit c. Debarment and Suspension. This contract is a covered transaction for purposes of 2 CFR Par such, the contractor is required to verify that none of the cont 2 CFR 180.995 , or affiliates, as defined at 2 CFR 180.905, are defined at 2 CFR 180.940,180.935 and 180.945. The Contractor agrees to comply, and assures the compliance of sub-recipient, or lessee at any tier, with Executive Orders Nos. and Suspension," 31 U.S.C. § 6101 note, and U.S. DOT regulations Debarment and Suspension (Non-procurement)," 49 C.F.R. Part 29, Subpart C in any lower tier covered transaction it enters into. assures that its third party contractors, sub-recipients, and le epls Parties Listing System at (www..gov/) before entering into any contracts. d. Bonus or Commission. The Contractor affirms that it has not pa to pay, any bonus or commission to obtain approval of its Federa for the Project. e. Lobbying Restrictions. The Contractor agrees that: (1) In compliance with 31 U.S.C. 1352(a),as amended by the Lobby Disclosure Act of 1955, that Contractors who apply or bid for an $100,000 or more shall file the certification required by 49 CFR used Federal assistance to pay the costs of influencing any offi employee of a Federal agency, Member of Congress, officer of Con employee of a member of Congress, in connection with making or e the Grant Agreement; (2) It will comply with other applicable Federal laws and regula the use of Federal assistance for activities, designed to influe or a State legislature with respect to legislation or appropriat 7of 42 Revised 02/21/13 Page CFPTA Agenda Packet 12/18/201415 through proper, official channels; and (3) It will comply, and will assure the compliance of each sub-r Restrictions on Lo U.S.C. § 1352. f. Employee Political Activity. To the extent applicable, t comply with the provisions of the Hatch Act, 5 U.S.C. §§ 1501 th 7326, and U.S. Office of Personnel Management regulations, "Politic Officers or Employees," 5 C.F.R. Part 151. The Hatch Act limits and local agencies and their officers and employees, whose princ financed in whole or part with Federal funds including a Federal or loan. Nevertheless, in accordance with 49 U.S.C. § 5307(k) ( the Hatch Act does not apply to a non-supervisory employee of a public transportation system (or of any other agency or entity performing related functions) whom the Hatch Act would not otherwise apply. g. False or Fraudulent Statements or Claims. The Contractor a agrees that: (1) Civil Fraud. The Program Fraud Civil Remedies Act of 1986, U.S.C. §§ 3801 et seq., and U.S. DOT regulations, "Program Fraud C.F.R. Part 31, apply to its activities in connection with the P Agreement for the Project, the Contractor certifies or affirms t accuracy of each statement it has made, it makes, or it may make Project. In addition to other penalties that may apply, the Con that if it makes a false, fictitious, or fraudulent claim, state assurance, or representation to the Federal/State Government con the Federal/State Government reserves the right to impose on the penalties of the Program Fraud Civil Remedies Act of 1986, as am the Federal/State Government deems appropriate. (2) Criminal Fraud. If the Contractor makes a false, fictitiou statement, submission, certification, assurance, or representati Government or includes a false, fictitious, or fraudulent statem any agreement with the Federal/State Government in connection wi authorized under 49 U.S.C. chapter 53 or any other Federal law, Government reserves the right to impose on the Contractor the pe 5323(l), 18 U.S.C. § 1001 or other applicable Federal/State law Federal/State Government deems appropriate. The Contractor agre with the requirements of 49 CFR29, Subpart C throughout the peri may arise from this offer. The Contractor further agrees to inc such compliance in its lower tier covered transactions. Section 8. Project Expenditures & Reimbursement. a. General. The Department shall reimburse the Contractor for allo work performed for the operating and capital costs of the projec project budget (Attachment A) under the terms of this Agreement 5317 funds and State and local matching funds. The Contractor shal this Agreement in accordance with the approved Project Budget. that the work conducted pursuant to this Agreement shall be done Expenditures submitted for reimbursement shall include all eligible cost the Contractor. incurred within the Period Covered. The Period Covered represents the monthly or quarterly timeframe in which the project reports expenditures to the Department. All 8of 42 Revised 02/21/13 Page CFPTA Agenda Packet 12/18/201416 payments issued by the Department will be on a reimbursable basi requests and the Department approves an advance payment. The Dep in good standing to request advance payment (prior to issuing pa vehicles and other high-cost capital items. The Contractor agre payments into its account when received and issue payment to the v business days. The amount of reimbursement from the Department budgeted in the approved Project Budget. The Contractor shall i completion all actions necessary to enable the Contractor to pro or prior to the time that such funds are needed to meet project provide its share of project costs from sources other than FTA a Department. Any costs for work not eligible for Federal and Sta one hundred percent (100%) by the Contractor. b. Payment and Reimbursement. The Contractor shall submit a reimbursement to the Department for the Period Covered not more less frequently than quarterly, reporting on the Department's Un Accounting System (UPTAS) invoicing forms furnished by the Depar Expenditures submitted for reimbursement shall include all eligible under this Agreement. cost incurred within the Period Covered. Failure to request reimbursement for expenses incurred within the Period Covered may result in non-payment. All requests for reporting period. Additional forms must be submitted with reimbursement requests t activities with Disadvantaged Business Enterprise (DBE) firms. documentation of costs unless otherwise waived by the Department submitted within thirty (30) days following the end of the quart Failure to request reimbursement for eligible projects costs as and reviewed by the Department's External Audit Branch prior to e. Excluded Costs. The Contractor understands and agrees that, ex the Department determines otherwise in writing, ineligible costs (1) In determining the amount of Federal/State assistance the provide, the Department will exclude: (a) Any Project cost incurred by the Contractor before the Ef the Grant; (b) Any cost that is not included in the latest Approved Project Budget; (c) Any cost for Project property or services received in connec with a third party contract or sub agreement with a sub recipien that must be approved by the Department, or other arrangement required to be, but has not been, concurred in or approved in writing by the Department; (d) Any non-project cost consistent with the prohibitions of 49 § 5323(h); and (e) Any cost ineligible for FTA/Department participation as prov by applicable Federal/State laws, regulations, or directives. (2) The Contractor shall limit reimbursement for meals, lodgi the rates established by the State of North Carolina Travel Poli Contractor in excess of these rates shall be borne by the contra (3) The Contractor understands and agrees that payment to th Project cost does not con 9of 42 Revised 02/21/13 Page CFPTA Agenda Packet 12/18/201417 that cost is allowable and eligible for payment and does not con by the Contractor of the terms of this Agreement. The Contracto Federal/State Government will not make a final determination about eligibility of any cost until an audit of the Project has been c Government determines that the Contractor is not entitled to rec Federal/State assistance the Contractor has requested or provide the Contractor in writing, stating its reasons. The Contractor n any funds due the Federal/State Government as a result of later refunds, corrections, or other transactions Federal/State Government's right to disallow costs and recover f audit or other review. Unless prohibited by Federal/State law o Government may recover any Federal/State assistance funds made a necessary to satisfy any outstanding monetary claims that the Fe have against the Contractor. f. Federal/State Claims, Excess Payments, Disallowed Costs, includ (1) . Upon notification to the Contractor that specific amounts are owed to the Federal/State Government, of Federal/State assistance, disallowed costs, or funds recovere elsewhere, the Contractor agrees to remit to the Department prom including applicable interest and any penalties and administrati (2) Amount of Interest. The Contractor agrees to remit to the interest owed as determined in accordance with N.C.G.S. 147-86.2 contractor that specific amounts are owed to the Federal Governm payments of Federal assistance, disallowed costs, or funds recov elsewhere, the Contractor agrees to remit to the Federal Governm owed, including applicable interest, penalties and administrativ (3) Payment to FTA. Upon receipt of repayment from the Contr Department shall be responsible to remit amounts owed to FTA. g. De-obligation of Funds. The Contractor agrees that the Department obligate unexpended Federal and State funds before Project close Section 9. Accounting & Accounting Records. a. Cost Accounting System. The Contractor will be responsible cost accounting system, and the ongoing burden of proof of adequ upon the Contractor. The Department will determine whether or n adequate cost accounting system. Such determination shall be do payment of any invoices pursuant to the Agreement, and from time necessary by the Department. In the event of a negative finding proceedings, the Department may suspend, revoke, or place condit and/or may recommend or require remedial actions as appropriate. b. Establishment and Maintenance of Accounting Records. The C establish and maintain separate accounts for the public transpor independently or within the existing accounting system. All cost be in accordance with most current approved Annual Budget and sh Department in accordance with UPTAS. c. Documentation of Project Costs. All costs charged to the P approved services performed by the Contractor or others, shall b executed payrolls, time records, invoices, contracts, or voucher and propriety of the charges, as referenced in 49 C.F.R. 19, the Budget Circulars A-- 10of 42 Revised 02/21/13 Page CFPTA Agenda Packet 12/18/201418 Administrative Requirements for Grants and Agreements with Insti Hospitals and Other Nonprofit Organizations." d. Allowable Costs. Expenditures made by the Contractor shall allowable costs to the extent they meet all of the requirements (1) Consistent with the Project Description, plans, specificatio Project Budget and all other provisions of this Agreement; (2) Necessary in order to accomplish the Project; (3) Reasonable in amount for the goods or services purchased; (4) Actual net costs to the Contractor, i.e., the price paid min refunds (e.g., refundable sales and use taxes pursuant to N.C.G 105-164.14), rebates, or other items of value received by the Contr that have the effect of reducing the cost actually incurred; and (5) Incurred (and be for work performed) within the period of pe period covered of this Agreement unless specific authorization from the Department to the contrary is received; (6) Satisfactorily documented; (7) Treated uniformly and consistently under accounting principl procedures approved or prescribed by the Department; and (8) In compliance with U.S. DOT regulations pertaining to allowa C.F.R. § 18.22 or 490 C.F.R. §19.27, which regulations specify t applicability of U.S. Office of State Budget and Management (U.S. OMB) circulars and Federal Acquisition Regulation (FAR) pr as follows: Principles for State, Local, and Indian Tribal Governments (OMB Circular A-87)", 2 C.F.R. Part 225, applies to Project incurred by a Contractor that is a State, local, or Indian Tribal government. (b1) Principles for Educational Institutions (OMB Circular A-21) Contractor that is an institution of higher education. (c1) Principles for Public Body (OMB Circular A- C.F.R. Part 230, applies to Project costs incurred by a Contract that is a public body. (d1) incurred by a Contractor that is a for-profit organization. Section 10. Reporting Requirements. The Federal Transit Administration (FTA) requires recipients of performance of services funded under these programs. FTA has est measures for JARC programs and instituted the reporting requirem Circular (9050.1) which went into effect on May 1, 2007.a. Repo The Contractor shall submit to the Department a progress report that is requested by Department ata minimum quarterly. Such reporting and documentation may include, but not be limited to: operating statistics, equipm reports, and monthly performance reports. The Contractor shall Department such financial statements, data, records, contracts, o the Project as may be deemed necessary by the Department. Such narrative and financial statements of sufficient substance to be 11of 42 Revised 02/21/13 Page CFPTA Agenda Packet 12/18/201419 reporting requirements of the Department. Progress reports thro project equipment shall be used, in part, to document utilizatio Failure to fully utilize the project equipment in the manner dir constitute a breach of contract, and after written notification termination of the Agreement or any such remedy as the Departmen (1). PROGRAM MEASURES. Contractors will submit reports to the Department that capture the overall program measures established by FTA that inc ridership as defined below: a (a). Number of Jobs. Actual or estimated number of jobs that be accessed as a result of geographic or temporal coverage of JA b (b). Ridership: Actual or estimated number of rides (as measu by one-way trips).. Section _11._ Record Retention & Access to Records. a. Record Retention. The Contractor and its third party contractor records pertaining to this Project for a period of five (5) year the Contractor, or until all audit exceptions have been resolved b. Access to Records of Contractor and Subcontractors. The Co and shall require its third party contractors to permit the Depa Auditor, the Comptroller General of the United States, and the S Department of Transportation, or their authorized representative payrolls, and other data and records with regard to the Project, and accounts of the Contractor pertaining to the Project in acco N.C.A.C Subchapter 5B and N.C.G.S. 147-64.7. The Department shall reserve the right to reject any and all materials and workmanship for defects and inc Description or excessive cost. The Department shall notify the C and/or workmanship are found to be unacceptable. The Contractor from notification to correct defects or to provide acceptable ma Failure by the Contractor to provide acceptable materials and/or noted defects, shall constitute a breach of contract. c. Project Closeout. The Contractor agrees that Project closeo reporting and record retention requirements of this Section of t Section 12. Project Completion, Audit, Settlement, and Closeout. a. Project Completion. Within ninety (90) calendar days follo agrees to submit a final reimbursement request to the Department b. Financial Reporting and Audit Requirements. In accordance 133, "Audits of State, Local Governments and Non-Profit Organiza 2003, N.C.G.S. 143-6.2, and Title 9 North Carolina Administrative Code (N.C.A.C.) 3M.0205, the Contractor shall comply with all rules and reportin statute or administrative rules. Each unit of local government and public authority/body shall ha as possible after the close of each fiscal year by a certified p 12of 42 Revised 02/21/13 Page CFPTA Agenda Packet 12/18/201420 accountant certified by the North Carolina Local Government Comm audit local government accounts. The sub recipient shall furnish NCDOT with a copy, in addition t of the independent audit report within four months (by October 3 agencies may not disburse funds to grantees that fail to comply Financial reporting and audit requirements shall be based on th thresholds: (1) Less than $25,000 - A grantee that receives, uses, or expe (including federal funds passed through) funds in an amount less dollars ($25,000) within its fiscal year must comply with the re by 9 N.C.A.C. Subchapter 3M including: (a) A certification completed by the grantee Board and manage stating that the State (including federal funds passed through) expended for the purposes for which they were granted; and (b) An accounting of the State (including federal funds passe funds received, used, or expended. All reporting requirements shall be filed with the funding agenc of the grantee's fiscal year in which the State (including feder were received. (2) $25,000 up to $500,000 - A grantee that receives, uses, or (including federal funds passed through) funds in an amount of a ($25,000) but less than five hundred thousand dollars ($500,000) comply with the reporting requirements established by 9 N.C.A.C. (a) A certification completed by the grantee Board and manage stating that the State (including federal funds passed through) expended for the purposes for which they were granted; (b) An accounting of the State funds received, used, or expen (c) A description of activities and accomplishments undertake grantee with the State (including federal funds passed through) The grantee must address the following areas in the Activities a What were the original goals and expectations for this activity applicable, how have these goals and expectations been revised o course of the project? What has the activity accomplished with these grant funds? Incl If the activity is a continuing one, briefly summarize future pl All reporting requirements shall be filed with the funding agenc of the grantee's fiscal year in which the State (including feder were received. (3) $500,000 or more - A grantee that receives, uses, or expen (including federal funds passed through) funds and in the amount ($500,000) or more within its fiscal year must comply with the r established by 9 N.C.A.C. Subchapter 3M including: (a) A certification completed by the grantee Board and manage stating that the State (including federal funds passed through) expended for the purposes for which they were granted; 13of 42 Revised 02/21/13 Page CFPTA Agenda Packet 12/18/201421 (b) An audit prepared and completed by a licensed Certified P Accountant for the grantee consistent with the reporting require 3M; and (c) A description of activities and accomplishments undertake grantee with the State (including federal funds passed through) All reporting requirements shall be filed with both the Departme Auditor within nine months after the end of the grantee's fiscal federal funds passed through) funds were received. The Contractor shall use the forms of the Office of State Budget Office of the State Auditor in making reports to the Department Auditor. The Contractor agrees to make available and require it available audit work papers in the possession of any auditor to State Auditor. c. Audit Costs. Unless prohibited by law, the costs of audits the provisions of 9 N.C.A.C. 3M.0205 are allowable charges to St charges may be considered a direct cost or an allocated indirect accordance with cost principles outlined in OMB Circular A-ublic and shall not be charged to State or Federal grants. d. Funds Owed to the Department. The Contractor agrees to rem any excess payments made to the Contractor, any costs disallowed amounts recovered by the Contractor from third parties or from o penalties and any interest required by Subsection 8f of this Agr e. Project Closeout. Project closeout occurs when the Departm project payment or acknowledges that the Contractor has remitted Contractor agrees that Project closeout by the Department does n requirements imposed by this Agreement. Section 13. Civil Rights . The Contractor agrees to comply with all applicable civil righ laws and implementing regulations including, but not limited to, a. Nondiscrimination in Federal Public Transportation Programs. T agrees to comply, and assures the compliance of each third party each sub recipient at any tier of the Project, with the provisio prohibit discrimination on the basis of race, color, creed, nati prohibits discrimination in employment or business opportunity. b. Nondiscrimination Title VI of the Civil Rights Act. The Contractor agrees to comply, and assures the compliance of each third party contracto recipient at any tier of the Project, with all provisions prohib race, color, or national origin of Title VI of the Civil Rights §§ 2000d et seq., and with U.S. DOT regulations, "Nondiscriminat Programs of the Department of Transportation Effectuation of Title VI of the Civil Rights Act," 49 C.F.R. Part 21. c. Equal Employment Opportunity. The Contractor agrees to com compliance of each third party contractor at any tier of the Pro tier of the Project, with all equal employment opportunity (EEO) with Title VII of the Civil Rights Act of 1964, as amended, 42 U Federal regulations and any subsequent amendments thereto. Accor (1) General. The Contractor agrees that it will not discrim employee or applicant for employment because of race, color, cre national origin. The Contractor agrees to take affirmative acti 14of 42 Revised 02/21/13 Page CFPTA Agenda Packet 12/18/201422 employed and that employees are treated during employment withou creed, sex, disability, age, or national origin. Such action sh employment, upgrading, demotion or transfer, recruitment or recr termination; rates of pay or other forms of compensation; and se apprenticeship. (2) Equal Employment Opportunity Requirements for Constructio the Contractor agrees to comply and assures the compliance of ea any tier or sub recipient at any tier of the Project, with all a opportunity requirements of U.S. DOL regulations, "Office of Fed Programs, Equal Employment Opportunity, Department of Labor," 41 which implement Executive Order No. 11246, "Equal Employment Opp Executive Order No. 11375, "Amending Executive Order No. 11246 R Employment Opportunity," 42 U.S.C. § 2000(e) note, and also with regulations, and directives affecting construction undertaken as d. Disadvantaged Business Enterprises. (1) Policy. It is the policy of the North Carolina Department Disadvantaged Business Enterprises (DBEs) as defined in 49 CFR Part 26 shall have the equal opportunity to compete fairly for and to participate in the perf whole or in part by Federal Funds. The Contractor is also encou to allow DBE participation in Supplemental Agreements. (2) Obligation. The Contractor, subconsultant, and subcontrac discriminate on the basis of race, religion, color, national ori performance of this contract. The Contractor shall comply with 49 CFR Part 26 in the award and administration of federally assisted contracts Contractor to comply with these requirements is a material breac result in the termination of this contract or such other remedy, necessary. (3) Goals. Even though specific DBE goals are not established the Department encourages the Contractor to have participation f suppliers. (4) Listing of DBE Subcontractors. The contractor, at the time Interest is submitted, shall submit a listing of all known DBE c the performance of the identified work. The participation shall -2. In the event the contractor has no DBE participation, the c shall indicate this on the Form RS- form shall be signed. Form RS-2 may be accessed on the website https://apps.dot.state.nc.us/quickfind/forms/Default.aspx. (5) Certified Transportation Firms Directory. Real-time information about contractors doing business with the Directory of Transportation Firms. The Directory can be accesse https://apps.dot.state.nc.us/vendor/directory/ in the address bar of your web browser. Only contractors identified as certain work. (6) Reporting Disadvantaged Business Enterprise Participation. are made to Disadvantaged Business Enterprise (DBE) contractors, suppliers, contractors at all levels (Contractor, subconsultant Contract Administrator with an accounting of said payments. The -IS). In the event the 15of 42 Revised 02/21/13 Page CFPTA Agenda Packet 12/18/201423 contractor has no DBE participation, the contractor shall indicay -IS may be accessed on the website at: https://apps.dot.state.nc.us/quickfind/forms/Default.aspx. A responsible fiscal officer of the payee Firm, sub consultant o the date and amounts of the payments shall certify that the acco acceptable report may be obtained from the Department of Transpo shall be submitted as part of the requests for payments made to g. Access for Individuals with Disabilities. The Contractor a U.S.C. § 5301(d), which states the Federal policy that elderly i disabilities have the same right as other individuals to use pub facilities, and that special efforts shall be made in planning a facilities to implement transportation accessibility rights for with disabilities. The Contractor also agrees to comply with al 504 of the Rehabilitation Act of 1973, as amended, with 29 U.S.C discrimination on the basis of disability; with the Americans wi as amended, 42 U.S.C. §§ 12101 et seq., which requires that acce be made available to individuals with disabilities; and with the as amended, 42 U.S.C. §§ 4151 et seq., which requires that build accommodations be accessible to individuals with disabilities. agrees to comply with applicable Federal regulations and directi amendments thereto, except to the extent the Department determin follows: (1) U.S. DOT regulations, "Transportation Services for Individ Disabilities (ADA)," 49 C.F.R. Part 37; (2) U.S. DOT regulations, "Nondiscrimination on the Basis of Programs and Activities Receiving or Benefiting from Federal Fin Part 27; (3) Joint U.S. Architectural and Transportation Barriers Comp ATBCB)/U.S. DOT regulations, "Americans with Disabilities (ADA) for Transportation Vehicles," 36 C.F.R. Part 1192 and 49 C.F.R. (4) U.S. DOJ regulations, "Nondiscrimination on the Basis of and Local Government Services," 28 C.F.R. Part 35; (5) U.S. DOJ regulations, "Nondiscrimination on the Basis of Accommodations and in Commercial Facilities," 28 C.F.R. Part 36; (6) U.S. General Services Administration (U.S. GSA) regulatio "Accommodations for the Physically Handicapped," 41 C.F.R. Subpa19; (7) U.S. Equal Employment Opportunity Commission, "Regulation the Equal Employment Provisions of the Americans with Disabiliti (8) U.S. Federal Communications Commission regulations, "Telecommunications Relay Services and Related Customer Premises Hearing and Speech Disabled," 47 C.F.R. Part 64, Subpart F; and (9) (10) FTA regulations, "Transportation for Elderly and Handicap C.F.R. Part 609; and (11) Federal civil rights and nondiscrimination directives im foregoing regulations. h. Drug or Alcohol Abuse-Confidentiality and Other Civil Right extent applicable, the Contractor agrees to comply with the conf protections of the Drug Abuse Office and Treatment Act of 1972, 16of 42 Revised 02/21/13 Page CFPTA Agenda Packet 12/18/201424 1101 et seq., with the Comprehensive Alcohol Abuse and Alcoholism Preventio and Rehabilitation Act of 1970, as amended, 42 U.S.C. §§ 4541 et seq., and with the Public Health Service Act of 1912, as amended, 42 U.S.C. §§ 201 et seq, and any subsequent amendments to these acts. i. Access to Services for Persons with Limited English Profici applicable and except to the extent that the Department determin Contractor agrees to comply with the policies of Executive Order to Services for Persons with Limited English Proficiency," 42 U. the provisions of U.S. DOT Notice, j. Environmental Justice. The Contractor agrees to comply wit Executive Order No. 12898, "Federal Actions to Address Environme Populations and Low-Income Populations," 42 U.S.C. § 4321 note, Department determines otherwise in writing. j. Other Nondiscrimination Laws. The Contractor agrees to comply applicable provisions of other Federal laws, regulations, and di prohibiting discrimination that are applicable, except to the ex otherwise in writing. Section 14. Planning and Private Enterprise. a. General. To the extent applicable, the Contractor agrees to im in a manner consistent with the plans developed in compliance wi private enterprise provisions of the following: (1) Federal Transit laws, specifically, 49 U.S.C. §§ 5317 (2) Guidance for Implementing Key SAFETEA-LU Provisions on Planning, Se-LU [clarifying Guidance on Implementation of SAFETEA-LU Planning Provisions], and subsequent Federal directives implementing SAFETEA-LU, excep extent FTA determines otherwise in writing; (3) Part 450 and 49 C.F.R. Part 613 to the extent that those regulat consistent with the SAFETEA-LU amendments to public transportati planning and private enterprise laws, and subsequent amendments regulations that may be promulgated; and (4) the extent that those regulations are consistent with the SAFETE amendments to the public transportation planning and private ent and any subsequent amendments to those Governmental and Private Nonprofit Providers of Nonemergency Transportation. (5) In addition to providing opportunities to participate in planning as described in Subsection 14a of this Agreement, to the extent feasible the Contractor agrees to comply with the provisions of 49 U.S.C. § 5323(k), which afford governmental agencies and nonprofit organizations that receive Federal assistance for nonemergency transportation from Federal Government sources (other than U.S. DOT) an opportunity to be included in the design, coordination, and planning of transportation services. c. Infrastructure Investment. During the implementation of the agrees to take into consideration the recommendations of Executi 17of 42 Revised 02/21/13 Page CFPTA Agenda Packet 12/18/201425 "Infrastructure Privatization," 31 U.S.C. § 501 note, and Execut for Federal Infrastructure Investments," 31 U.S.C. § 501 note. Section 15. Preference for United States Products and Services. To the extent applicable, the Contractor agrees to comply with the following U requirements: a. Buy America. The Contractor agrees to comply with 49 U.S.C. § regulations, "Buy America Requirements," 49 C.F.R. Part 661 to t are consistent with SAFETEA-LU provisions, and subsequent amendm that may be promulgated. The Contractor also agrees to comply w extent those directives are consistent with SAFETEA-LU provision FTA or the Department determines otherwise in writing. b. Cargo Preference-Use of United States-Flag Vessels. The Contra comply with U.S. Maritime Administration regulations, "Cargo Pre 46 C.F.R. Part 381, to the extent those regulations apply to the P c. Fly America. The Contractor understands and agrees that the Government will not participate in the costs of international ai involved in or property acquired for the Project unless that air U.S.-flag air carriers to the extent service by U.S.-flag air ca with the requirements of the International Air Transportation Fa of 1974, as amended, 49 U.S.C. § 40118, and with U.S. ates Flag Air Carriers," 41 C.F.R. §§ 301-10.131 through 301-10.143. Section 16. Procurement. To the extent applicable, the Contractor agrees to comply with following third party procurement provisions: a. Federal Standards. The Contractor agrees to comply with the th procurement requirements of 49 U.S.C. chapter 53 and other appli now or as subsequently enacted; with U.S. DOT third party procur C.F.R. §§ 19.40 through 19.48 and other applicable Federal regul procurements and subsequent amendments thereto, to the extent th consistent with SAFETEA-LU provisions; and Article 8 of Chapter General Statutes. The Contractor also agrees to comply with the 4220.1E, "Third Party Contracting Requirements," to the extent t with SAFETEA-LU provisions and with any subsequent amendments th extent the Depa procurement processes and may omit certain Federal requirements contract work to be performed. The Contractor shall establish w that comply with the required Federal and State standards. b. Full and Open Competition. In accordance with 49 U.S.C. § 5325 Contractor agrees to conduct all procurement transactions in a m open competition as determined by the Department and FTA. c. Exclusionary or Discriminatory Specifications. Apart from i imposed by Federal laws or regulations, the Contractor agrees to of 49 U.S.C. § 5325(h) by not using any Federal assistance award procurement using exclusionary or discriminatory specifications. d. Geographic Restrictions. The Contractor agrees that it will no local geographic preference, except State or local geographic pr or as permitted by FTA. However, for example, in procuring arch a sufficient number of qualified firms are eligible to compete. 18of 42 Revised 02/21/13 Page CFPTA Agenda Packet 12/18/201426 e. In-State Bus Dealer Restrictions. The Contractor agrees that in a U.S.C. § 5325(i), any State law requiring buses to be purchased not apply to purchases of vehicles acquired with funding authori f. Neutrality in Labor Relations. To the extent permitted by law, Constr 41 U.S.C. § 251 note, which among other things prohibits require organization as a condition for award of any third party contrac or construction management services, unless the Federal Governme writing. g. Federal Supply Schedules. State, local, or nonprofit Recipient Federal Supply Schedules to acquire federally assisted property permitted by U.S. GSA, U.S. DOT, or FTA laws, regulations, direc h. Force Account. The Contractor agrees that FTA may determine th Federal assistance may be used to participate in force account c i. Department Technical Review. The Contractor agrees to permit t Department believes necessary to ensure proper Project administr to submit the following to the Department for its review and app (1) New/adapted specifications for equipment, supplies, appara rolling stock. This requirement does not apply to equipment, su of less than $30,000; or to Minivans; Conversion and Lift Vans; Vans; and Light Transit Vehicles (Cutaway-type Bus). (2) Drawings, designs, and/or description of work for construc facility improvement projects, including the purchase or constru j. Department Pre-award Approval. The Contractor agrees to submit documents to the Department for its review and approval prior to subcontract under this Agreement for any of the following: (1) All new-type rolling stock, excluding Minivans; Conversio Center Aisle Vans and Standard Vans; and Light Transit Vehicles ay-type Bus). (2) All construction projects equal to or greater than $30,00 (3) $3,000; (4) Any contract/subcontract to other than apparent lowest bi greater than $3,000; (5) Any procurement equal to or greater than $90,000; (6) Any contract modification that would change the scope of increase the contract amount up to or over the formal (sealed) b k. Project Approval/Third Party Contract Approval. Except to t Department determines otherwise in writing, the Contractor agree of Federal and State assistance for the Project does not, by its non-competitive third party contract associated with the Project. l. Preference for Recycled Products. To the extent applicable, th Containing Reco 19of 42 Revised 02/21/13 Page CFPTA Agenda Packet 12/18/201427 Resource Conservation and Recovery Act, as amended, 42 U.S.C. § subsequent Federal regulations that may be promulgated. Accordi to provide a competitive preference for products and services th protect the environment, and are energy efficient. m. Clean Air and Clean Water. The Contractor agrees to include in contract and sub agreement exceeding $100,000 adequate provision Project participant will agree to report the use of facilities p U.S. Environmental Protection Agency (U.S. EPA) "List of Violati violating facilities, to report violations to the Department and to comply with the inspection and other applicable requirements (1) Section 306 of the Clean Air Act, as amended, 42 U.S.C. § applicable provisions of the Clean Air Act, as amended, 42 U.S.C (2) Section 508 of the Clean Water Act, as amended, 33 U.S.C. other applicable requirements of the Clean Water Act, as amended 1377. n. National Intelligent Transportation Systems Architecture and St extent applicable, the Contractor agrees to conform to the Natio Systems (ITS) Architecture and Standards as required by SAFETEA- 512 note, and comply with FTA Notice, "FTA National ITS Architec Projects" 66 Fed. Reg. 1455 et seq., January 8, 2001, and any su directives, except to the extent FTA or the Department determine o. Rolling Stock. In acquiring rolling stock, the Contractor agre (1) Method of Acquisition through the North Carolina Department of Administration, Purchas awards vehicle contracts for its grant recipients to purchase pu vehicle contracts comply with FTA and State requirements. The C vehicle contracts to purchase public transit vehicles included i Project. For public transit vehicles not included in these cont a competitive procurement process in accordance with this Agreem (2) Multi-year Options. In accordance with 49 U.S.C. § 5325(e Contractor may not enter into a multi-year contract with options the date of the original contract, to purchase additional rollin (3) Pre-Award and Post-Delivery Requirements. The Contractor -Award and Post- any amendments to those regulations. The Contractor understands extent the provisions of 49 U.S.C. § 5323(m), as amended by SAFE implementing regulations, as currently promulgated, the provisio amended, prevail. (4) Bus Testing. To the extent applicable, the Contractor agrees t the requirements of 49 U.S.C. § 5318(e) and FTA regulations, "Bu 665, and any amendments to those regulations that may be promulg p. Bonding. For construction projects, the Contractor agrees t bond (5% of bid price) and performance and payment bonds (100% o comply with any other construction bonding provisions as the Dep q. Architectural, Engineering, Design, or Related Services. For al engineering, design, or related services the Contractor shall us competitive proposal [Request for Qualifications (RFQ) in accord procedures. The Contractor shall follow applicable statutes, N. requirements set forth in FTA Circular 4220.1F, to retain a qual professional engineer. 20of 42 Revised 02/21/13 Page CFPTA Agenda Packet 12/18/201428 (1) The Contractor agrees to comply with qualifications-based proposal procedures, which require: (a) An offeror's qualifications be evaluated; (b) Good faith effort to use minority-owned businesses; (c) Price be excluded as an evaluation factor; (d) Negotiations be conducted with only the most qualified offer and (e) Failing agreement on price, negotiations with the next most qualified offeror be conducted until a contract award can be mad most qualified offeror whose price is fair and reasonable. (2) Geographic location may be a selection criterion in procu architectural and engineering (A&E) services provided its applic number of qualified firms, given the nature and size of the proj (3) The Contractor acknowledges and agrees that qualifications proposal procedures can only be used for procurement of the foll (a) Program management; (b) Construction management; (c) Feasibility studies; and (d) Preliminary engineering, design, architectural, engineerin surveying, mapping, and related services. (4) The Contractor also agrees to: (a) Include applicable Federal requirements and certifications i solicitation; (b) Submit procurement documents to the Department for its revie and approval prior to the award of any contract for A&E service Project; and (c) Maintain written documentation to support each step of the procurement process. r. Design-Bid-Build Projects. The Design-Bid-Build method of construction is where there are separate contracts and procurement processes for the d Typically the designer coordinates the numerous prime contractor construction process. The Contractor may use design-bid-build p projects after it has complied with applicable Federal and State approval from the Department prior to solicitation and award of s. Design-Build Projects. The Design-Build method of construct contractor is given responsibility for both design and construct intermediate procurement step with possible time saving, and mor opportunities for cost savings. Currently, this procurement met of procurement by the State of North Carolina. The Contractor m State Building Commission for a 2/3-majority vote of approval. build is that the owner does not have an independent source (the overseeing design implementation and verifying conformance with specifications. t. Competitive Proposal/Request for Proposal (RFP). The competitiv request for proposal (RFP) method of procurement is normally con source submitting an offer, i.e., proposal. Either a fixed pric contract is awarded. This method of procurement is generally us appropriate for the use of sealed bids. The Contractor acknowle apply under North Carolina law for use of the RFP method and the are discussed below. 21of 42 Revised 02/21/13 Page CFPTA Agenda Packet 12/18/201429 (1) The Contractor agrees that the RFP Method may not be used invitation for bids (IFB) for: (a) Construction/repair work; or (b) Purchase of apparatus, supplies, materials or equipment. (2) The Contractor agrees that the RFP method of solicitatio addition to or instead of any other procedure available under No procurement of information technology goods and services [as def 33.81(2)]. This applies to electronic data processing goods and goods and services, security goods and services, microprocessors processing, office systems, any services related to the foregoin services for design or redesign of information technology suppor Contractor will comply with the following minimum requirements [ (a) Notice of the request for proposals shall be given in ac N.C.G.S. 143-129(b). (b) Contracts shall be awarded to the person or entity that overall proposal as determined by the awarding authority. Facto contracts shall be identified in the request for proposals. (c) The Contractor may use procurement methods set forth in 143-135.9 in developing and evaluating requests for proposals. (d) The Contractor may negotiate with any proposer in order obtain a final contract that best meets the needs of the Contrac (e) Any negotiations shall not alter the contract beyond the original request for proposals in a manner that deprives the pro a fair opportunity to compete for the contract; and would have r contract to a different person or entity if the alterations had proposals. (f) Proposals submitted shall not be subject to public inspe contract is awarded. (3) The Contractor agrees that the RFP method, in accordance procurements of professional services, such as consultants for p system operations/management. The Contractor acknowledges that under North Carolina law for use of the RFP method and these res discussed in Subsections 16t(1) and 16t(2) of this Agreement. F design, or related services, the Contractor agrees that the qual proposal process shall be used (see Subsection 16q, this Agreeme (4) When the RFP method is used for procurement of profession Contractor agrees to abide by the following minimum requirements (a) Normally conducted with more than one source submitting an offer (proposal); (b) Either fixed price or cost reimbursement type contract will used; (c) Generally used when conditions are not appropriate for use o sealed bids; (d) Requests for proposals will be publicized; (e) All evaluation factors will be identified along with the importance; (f) Proposals will be solicited from an adequate number (3 is recommended) of qualified sources; (g) A standard method must be in place for conducting techni evaluations of the proposals received and for selecting awardees (h) Awards will be made to the responsible firm whose propos 22of 42 Revised 02/21/13 Page CFPTA Agenda Packet 12/18/201430 most advantageous to the Contractor's program with price and other factors considered; and (i) In determining which proposal is most advantageous, the Contractor may award to the proposer whose proposal offers the gr based on determination of which proposal offers the best tradeof between price and performance, where quality is considered an in performance factor. u. Award to Other than the Lowest Bidder. In accordance with statutes, a third party contract may be awarded to other than th furthers an objective (such as improved long-term operating effi costs). When specified in bidding documents, factors such as di and life cycle costs will be considered in determining which bid any contract equal to or greater than $2,500 to other than appar Contractor shall submit its recommendation along with basis/reas Department for pre-award approval. v. Award to Responsible Contractors. The Contractor agrees to contracts only to responsible contractors who possess potential under the terms and conditions of the proposed procurement. Con such matters as contractor integrity, compliance with public pol and financial and technical resources. Contracts will not be awa debarred, suspended, or otherwise excluded from or ineligible fo assistance programs or activities in accordance with the Federal rule, 49 C.F.R. 29. For procurements over $25,000, the Contractor the compliance of each third party contractor and sub recipient and suspension rule. FTA and the Department recommend that gran form for projects over $25,000, which are funded in part with Fe certification form can be obtained from the Department. The Con e following Web site: http://epls.arnet.gov/. w. Procurement Notification Requirements. With respect to any pro goods and services (including construction services) having an a more (in Federal funds), the Contractor agrees to: (1) Specify the amount of Federal and State funds that will be acquisition in any announcement of the contract award for such g (2) Express the said amount as a percentage of the total costs acquisition. x. Contract Administration System. The Contractor shall maintain a administration system that ensures that contractors/subcontracto the terms, conditions, and specifications of their contracts or y. Access to Third Party Contract Records. The Contractor agrees, require its third party contractors and third party subcontracto as required, to provide to the Federal and State awarding agenci representatives, access to all third party contract records to t 5325(g), and retain such documents for at least five (5) years a Section 17. Leases. a. Capital Leases. To the extent applicable, the Contractor agree regulations, "Capital Leases," 49 C.F.R. Part 639, and any revis agreements must be approved by the Department prior to execution 23of 42 Revised 02/21/13 Page CFPTA Agenda Packet 12/18/201431 b. Leases Involving Certificates of Participation. The Contractor of certificates of participation in connection with the acquisit Section 18. Hold Harmless. Except as prohibited or otherwise limited by State law or excep to the extent that FTA or the Department determines otherwise in Federal or State Government, the Contractor agrees to indemnify, Federal and State Government and its officers, agents, and emplo of their official duties against any liability, including costs willful or intentional violation by the Contractor of proprietar privacy, arising out of the publication, translation, reproducti any data furnished under the Project. The Contractor shall not Federal or State Government for any such liability caused by the State employees or agents. Section 19. Use of Real Property, Equipment, and Supplies. The Contractor understands and agrees that the Federal Government retains a Federal interes retains a State interest in any real property, equipment, and su State assistance (Project property) until, and to the extent, th Government relinquishes its Federal or State interest in that Pr any Project property financed with Federal orState assistance un Contractor agrees to comply with the following provisions of thi extent FTA or the Department determines otherwise in writing: a. Use of Project Property. The Contractor agrees to maintain con the use of Project property to the extent satisfactory to the De to use Project property for appropriate Project purposes (which purposes that generate program income, both during and after the support public transportation activities) for the duration of th required by FTA or the Department. Should the Contractor unreas Project property during the useful life of that property, the Co required to return the entire amount of the Federal and State as property. The Contractor further agrees to notify the Departmen property is withdrawn from Project use or when any Project prope substantially different from the representations the Contractor the Project Description for this Agreement for the Project. In responsible for notifying FTA. b. General. The Contractor agrees to comply with the property mana standards of 49 C.F.R. §§ 19.30 through 19.37, including any ame other applicable Federal and State regulations and directives. requirements of 49 C.F.R. §§ 19.30 through 19.37 requires the exl requirements for premature dispositions of certain Project equip 19 of this Agreement. c. Maintenance & Inspection of Vehicles, Facilities and Other P Contractor shall maintain all project equipment at a high level mechanical soundness in accordance with the minimum maintenance recommended by the manufacturer. The Contractor shall register a activities in a Comprehensive Maintenance Record or an electroni Department shall conduct frequent inspections to confirm proper Section of this Agreement and the State Management Plan. The C submit to the Department at such time and in such manner as it m 24of 42 Revised 02/21/13 Page CFPTA Agenda Packet 12/18/201432 d. Records. The Contractor agrees to keep satisfactory records pe of Project property, and submit to the Department upon request s required to assure compliance with this Section of this Agreemen e. Incidental Use. The Contractor agrees that: (1) General. Any incidental use of Project property will not under applicable Federal and State laws, regulations, and direct (2) Alternative Fueling Facilities. As authorized by 49 U.S.C incidental use of its federally financed alternative fueling fac public entities and private entities will be permitted, only if (a) transportation operations; (b) Contractor fully recaptures all costs related to the inc the non-transit public entity or private entity; (c) Contractor uses revenues received from the incidental us costs for planning, capital, and operating expenses that are inc transportation; and (d) Private entities pay all applicable excise taxes on fuel f. Title to Vehicles. The Certificate of Title to all vehicle Approved Budget for this Pr Public Transportation Division shall be recorded on the Certific the event of project termination or breach of contract provision written notification by the Department, surrender Project equipm Certificate(s) of Title for Project equipment to the Department g. Encumbrance of Project Property. The Contractor agrees to continuing control of Project property as follows: (1) Written Transactions. The Contractor agrees that it will transfer of title, lease, lien, pledge, mortgage, encumbrance, t agreement, grant anticipation note, alienation, innovative finan border lease, leveraged lease, or otherwise), or any other oblig property, that in any way would affect the continuing Federal an property. (2) Oral Transactions. The Contractor agrees that it will not manner to any third party with respect to Project property. (3) Other Actions. The Contractor agrees that it will not tak adversely affecting the Federal and State interest in or impair of the use of Project property. h. Transfer of Project Property. The Contractor understands and a (1) Contractor Request. The Contractor may transfer any Proje financed with Federal assistance authorized under 49 U.S.C. chap authority to be used for any public purposed with no further obl Government, provided the transfer is approved by the Federal Tra conforms with the requirements of 49 U.S.C. §§ 5334(h) (1) throu (2) Federal/State Government Direction. The Contractor agrees or State Government may direct the disposition of, and even requ title to any Project property financed with Federal/State assist (3) Leasing Project Property to Another Party. (a) General. Prior to entering into any third party contract Project property to another party, the Contractor agrees to obta If the Contractor leases any Project property to another party, ownership of the leased Project property, and assure that the le 25of 42 Revised 02/21/13 Page CFPTA Agenda Packet 12/18/201433 property appropriately, through a written lease between the Cont Contractor agrees to use the standard lease agreement form provi provide a copy of the signed, executed lease agreement to the De Subsection 6 of this Agreement, regardless of assignment of work Project or lease of Project assets to a third party, it is the C comply with Federal and State requirements of this Agreement and any third party contractors. (b) Lease of Vehicles. The lease of vehicles acquired with f assistance authorized for 49 U.S.C. 5317 to any third party is contingent upon approval of the Department. It is allowable to lease vehicles to another Commun providing general public service in the State of North Carolina, Department. It is also allowable for vehicles to be leased to a transportation management company that operates the transit serv under contract to the Contractor, upon approval of the Departmen use the vehicle lease agreement provided by the Department when on a short-term basis, to another Community Transportation Syste company. The Contractor agrees to obtain written approval from lease is executed and forward a copy of the signed, executed lea Department. The Contractor, as a Community Transportation Syste to human service agencies, county agencies/government, community systems. The Contractor agrees not to loan vehicle(s) to other term use, even during hours that the transportation system is no - general public. i. Disposition of Project Property. With prior Department approva may sell, transfer, or lease Project property and use the procee cost of other eligible capital public transportation projects to Project property and that the Contractor will use Project proper throughout the useful life of that property. Upon the end of th Contractor may dispose of Project property after notifying and r from the Department. (1) Project Property Whose Useful Life Has Expired. When the Project property has expired, the Contractor agrees to comply wi requirements. (2) Project Property Prematurely Withdrawn from Use. For Pro withdrawn from appropriate use before its useful life has expire follows: (a) Notification Requirement. The Contractor agrees to notif Department immediately when any Project property is prematurely use, whether by planned withdrawal, misuse, or casualty loss. (b) Calculating the Fair Market Value of Prematurely Withdraw Property. The Contractor agrees that the Federal/State Governme interest in the fair market value of Project property prematurel The amount of the Federal/State interest in the Project property of the Federal/State assistance awarded for the property to the Contractor agrees that the fair market value of Project property will be calculated as follows: 1. Equipment and Supplies. The Contractor agrees that the fair market value of Project equipment and supplies shall be cal depreciation of that property, based on the useful life of the e established by the Department. The fair market value of Project 26of 42 Revised 02/21/13 Page CFPTA Agenda Packet 12/18/201434 be the value immediately before the occurrence prompting the wit supplies from appropriate use. In the case of Project equipment fire, casualty, or natural disaster, the fair market value shall condition of that equipment or supplies immediately before the f or the amount of insurance coverage, whichever is greater. 2. Real Property. The Contractor agrees that the fair market value of real property shall be determined either on the basis oon an appropriate date approved by the Department, as provided by 4 straight line depreciation of improvements to real property coup determined on the basis of appraisal, or other Federal/state law applicable. 3. Exceptional Circumstances. The Contractor agrees that the Department may require the use of another method to determin Project property. In unusual circumstances, the Contractor may reasonable valuation method be used including, but not limited t comparable sales, or established market values. In determining request, the Department may consider any action taken, omission occurrence suffered by the Contractor with respect to the preser withdrawn from appropriate use. (c) Financial Obligations to the Federal/State Government. T Contractor agrees to remit to the Department the Federal and Sta value of any Project property prematurely withdrawn from appropr Department shall be responsible to remit the Federal interest to casualty, or natural disaster, the Contractor may fulfill its ob State interest by either: 1. Investing an amount equal to the remaining Federal and State interest in like-kind property that is eligible for assistance within the scope of the Project that provided Federal/State assistance for the Project property prematurely withdrawn from use; or 2. Returning to the Department an amount equal to the remaining Federal and State interest in the withdrawn Project property. j. Insurance Proceeds. If the Contractor receives insurance proce damage or destruction to the Project property, the Contractor ag (1) Apply those insurance proceeds to the cost of replacing the or destroyed Project property taken out of service, or (2) Return to the Department an amount equal to the remaining Fe and State interest in the damaged or destroyed Project property k. Transportation - Hazardous Materials. The Contractor agrees applicable requirements of U.S. Pipeline and Hazardous Materials regulations, "Shippers - General Requirements for Shipments and 173, in connection with the transportation of any hazardous mate 27of 42 Revised 02/21/13 Page CFPTA Agenda Packet 12/18/201435 l. Misused or Damaged Project Property. If any damage to Project from abuse or misuse occurring with the Contractor 's knowledge agrees to restore the Project property to its original condition and State interest in that property, as the Department may requi m. Responsibilities after Project Closeout. The Contractor agrees responsibilities as stated in Section 19 of this Agreement, and subsequent Federal and State laws, regulations, and directives, Department determines otherwise in writing. Section 20. Insurance & Real Property. The Contractor shall be responsible for protecting the state and the facility construction/renovation and equipment purchased und the useful life. The Contractor shall provide, as frequently ane Department may require, written documentation that the facility against loss in an amount equal to or greater than the state and value of the facility or equipment. Failure of the Contractor t be considered a breach of contract and, after notification may r Agreement. In addition, other insurance requirements may apply, the Contrac a. Minimum Requirements. At a minimum, the Contractor agrees to c insurance requirements normally imposed by North Carolina State and ordinances, except to the extent that the Department determi b. Flood Hazards. To the extent applicable, the Contractor agrees flood insurance purchase provisions of Section 102(a) of the Flo 1973, 42 U.S.C. § 4012a(a), with respect to any Project activity acquisition having an insurable cost of $10,000 or more. Section 21. Relocation. When relocation of individuals or businesses is required, the Contractor agrees as follows: a. Relocation Protections. The Contractor agrees to comply with 4 which requires compliance with the Uniform Relocation Assistance Acquisition Policies Act of 1970, as amended, 42 U.S.C. §§ 4601 regulations, "Uniform Relocation Assistance and Real Property Acand Federally Assisted Programs," 49 C.F.R. Part 24, which provide f of persons displaced and persons whose property is acquired as a Relocation Assistance at 70 Fed. Reg. 590 et seq., January 4, 2005.] These requireme connection with all interests in real property acquired for the participation in the costs of that real property. b. Nondiscrimination in Housing. In carrying out its responsibili that may be required for compliance with Federal relocation requ Contractor agrees to comply with Title VIII of the Civil Rights U.S.C. §§ 3601 et seq., and with Executive Order No. 12892, "Lea Fair Housing in Federal Programs: Affirmatively Furthering Fair note. 28of 42 Revised 02/21/13 Page CFPTA Agenda Packet 12/18/201436 c. Prohibition Against Use of Lead-Based Paint. In undertaking rehabilitation of residential structures on behalf of individual acquisition in connection with implementing the Project, the Con lead-based paint, consistent with the prohibitions of Section 40 Poisoning Prevention Act, 42 U.S.C. § 4831(b), and the provision Dev-based Paint Poisoning in Certain Residential Structures." Section 22. Real Property. For real property acquired with Federal assistance, the Contrac agrees as follows: a. Land Acquisition. The Contractor agrees to comply with 49 U.S. requires compliance with the Uniform Relocation Assistance and R Policies Act of 1970, as amended, 42 U.S.C. §§ 4601 et seq.; and "Uniform Relocation Assistance and Real Property Acquisition for C.F.R. Part 24, 70 Fed. Reg. 590 et seq., January 4, 2005.] The interests in real property acquired for Project purposes regardl cost of that real property. b. Covenant Assuring Nondiscrimination. The Contractor agrees to covenant in the title of the real property acquired for the Proj during the useful life of the Project. c. Recording Title to Real Property To the extent required by FTA and the Department, the Contractor agrees property used in connection with the Project and/or execute at t property. (1)As a condition of its participation in a Facility Project, the Department will retain a secured interest in the Project for the estimated life of the Project, expected to be forty (40) years, following completion of the Project; or the prorated share of the original investment or current fair market value (the higher value of the two); whichever comes first. To the extent required by FTA and the Department, the Contractor and State interest in title to real property used in connection d. Department Approval of Changes in Real Property Ownership. The agrees that it will not dispose of, modify the use of, or change or other interest in the site and facilities used in the Project instructions from the Department. e. Disposal of Real Property. (1)If useful life is not attained, upon the sale or disposition of any Project facility, the Department shall be entitled to a refund of the original state and/or federal investment or the state and/or federal prorated share of the current fair market value of the project facility, whichever is greater. (2) Project facility for a use not consistent with purposes for which the state and/or federal shar originally granted pursuant to the Project Agreement, or for a u with such purposes wherein the transferee in the sale or disposi enter into an assignment and assumption agreement with the Contr Agreement, so that the transferee becomes obligated as if the tr been the original party. 29of 42 Revised 02/21/13 Page CFPTA Agenda Packet 12/18/201437 Section 23. Construction. Except to the extent the Department determines otherwise in writing, the Contractor agrees as follows: a. Drafting, Review, and Approval of Construction Plans and Specif Contractor agrees to submit drawings, designs, and/or descriptio renovation, or facility improvement projects, including the purc shelters to the Department for its review and approval prior to . b. MBE/WBE/DBE Participation. The Contractor agrees to record owned Business good faith efforts in accordance with N.C.G.S. 14 c. Supervision of Construction. The Contractor agrees to provi competent and adequate engineering supervision at the constructi complete work conforms to the approved plans and specifications. d. Construction Reports. The Contractor agrees to provide progres data and information as may be required by the Department. e. Project Management for Major Capital Projects. To the extent a Contractor agrees to comply with FTA regulations, "Project Manag Part 633, and any subsequent Project Management Oversight regula f. Seismic Safety. The Contractor agrees to comply with the Earth Reduction Act of 1977, as amended, 42 U.S.C. §§ 7701 et seq., wi 12699, "Seismic Safety of Federal and Federally-Assisted or Regu C.F.R. Part 41, specifically, 49 C.F.R. § 41.117. Section 24. Employee Protections. a. Construction Activities. The Contractor agrees to comply, and compliance of each third party contractor and each sub recipient the following laws and regulations providing protections for con (1) Davis-Bacon Act, as amended, 49 U.S.C. § 5333(a), which compliance with the Davis-Bacon Act, 40 U.S.C. §§ 3141 et seq., regulations, "Labor Standards Provisions Applicable to Contracts and Assisted Construction (also Labor Standards Provisions Appli Contracts Subject to the Contract Work Hours and Safety Standard (2) Contract Work Hours and Safety Standards Act, as amended, 3701 et seq., specifically, the wage and hour requirements of Se U.S.C. § 3702, and implementing U.S. DOL regulations, "Labor Sta to Contracts Governing Federally Financed and Assisted Construct Provisions Applicable to Nonconstruction Contracts Subject to th Safety Standards Act)," 29 C.F.R. Part 5; and the safety require at 40 U.S.C. § 3704, and implementing U.S. DOL regulations, "Saf for Construction," 29 C.F.R. Part 1926; and (3) Copeland "Anti-Kickback" Act, as amended, 18 U.S.C. § 874, implementing U.S. DOL regulations, "Contractors and Subcontracto Public Work Financed in Whole or in part by Loans or Grants from Part 3. 30of 42 Revised 02/21/13 Page CFPTA Agenda Packet 12/18/201438 b. Activities Not Involving Construction. The Contractor agrees t assures the compliance of each third party contractor and each s Project, with the employee protection requirements for nonconstr Contract Work Hours and Safety Standards Act, as amended, 40 U.S particular the wage and hour requirements of Section 102 of that with U.S. DOL regulations, "Labor Standards Provisions Applicabl Federally Financed and Assisted Construction (also Labor Standar Nonconstruction Contracts Subject to the Contract Work Hours and9 C.F.R. Part 5. c. Activities Involving Commerce. The Contractor agrees that t Fair Labor Standards Act, 29 U.S.C. §§ 201 et seq., apply to emp work involving commerce. d. Public Transportation Employee Protective Arrangements for Proj Nonurbanized Areas Authorized by 49 U.S.C. § 5317. The Contractor agrees to comply with the terms and conditions of the Special Warranty for the Nonurba by the U.S. Secretaries of Transportation and Labor, dated May 3 implementing procedures, and any revisions thereto. Section 25. Environmental Protections. The Contractor recognizes that many Federal and State laws imposing environmental and resource conservation requ Project. Some, but not all, of the major Federal laws that may National Environmental Policy Act of 1969, as amended, 42 U.S.C. Clean Air Act, as amended, 42 U.S.C. §§ 7401 through7671q and sc United States Code; the Clean Water Act, as amended, 33 U.S.C. § Resource Conservation and Recovery Act, as amended, 42 U.S.C. §§ Comprehensive Environmental Response, Compensation, and Liabilit U.S.C. §§ 9601 through 9675, as well as environmental provisions Code, and 49 U.S.C. chapter 53. The Contractor also recognizes other Federal agencies have issued, and in the future are expect and directives that may affect the Project. Thus, the Contracto the compliance of each third party contractor, with any applicab directives as the Federal Government are in effect now or become to the extent the Federal Government determines otherwise in wri environmental provisions of particular concern to FTA and the De understands and agrees that those laws, regulations, and directi Contractor's entire obligation to meet all Federal environmental requirements. a. National Environmental Policy. Federal assistance is contingen regulations of the National Environmental Policy Act of 1969, as §§ 4321 through 4335 (as restricted by 42 U.S.C. § 5159, if appl 11514, as amended, "Protection and Enhancement of Environmental note; FTA statutory requirements at 49 U.S.C. § 5324(b); U.S. Coy regulations pertaining to compliance with NEPA, 40 C.F.R. Parts FHWA/FTA regulations, "Environmental Impact and Related Procedur and 49 C.F.R. Part 622, and subsequent Federal environmental pro be promulgated. As a result of enactment of 23 U.S.C. §§ 139 an amendments to 23 U.S.C. § 138, environmental decision-making req projects to be implemented consistent with the joint FHWA/FTA for Implementing Key SAFETEA-LU Provisions on Planning, Environm 31of 42 Revised 02/21/13 Page CFPTA Agenda Packet 12/18/201439 Federal directives that may be issued, except to the extent that writing. b. Air Quality. Except to the extent the Federal Government deter writing, the Contractor agrees to comply with all applicable Fed directives implementing the Clean Air Act, as amended, 42 U.S.C. (1) The Contractor agrees to comply with the applicable requir 176(c) of the Clean Air Act, 42 U.S.C. § 7506(c), consistent wit for Implementing Key SAFETEA-LU Provisions on Planning, Environ applicable Federal directives that may be issued; with U.S. EPA State or Federal Implementation Plans of Transportation Plans, P Developed, Funded or Approved Under Title 23 US.C. or the Federa Part 51, Subpart T; and "Determining Conformity of Federal Actio Implementation Plans," 40 C.F.R. Part 93, and any subsequent Fed that may be promulgated. To support the requisite air quality c the Contractor agrees to implement each air quality mitigation o in the Project. The Contractor further agrees that any Project Implementation Plan (SIP) as a Transportation Control Measure wi the design concept and scope of the Project described in the SIP (2) U.S. EPA also imposes requirements implementing the Clean amended, which may apply to public transportation operators, par public transportation bus fleets. Accordingly, the Contractor a U.S. EPA regulations to the extent they apply to the Project: "C -Use Motor Vehicles and New and In-Use Motor Vehicle Engines," 40 C.F.R. Part 86; and "Fuel Economy o Vehicles," 40 C.F.R. Part 600. (3) The Contractor agrees to comply with notice of violating f Executive Order No. 11738, "Administration of the Clean Air Act Control Act with Respect to Federal Contracts, Grants, or Loans, c. Clean Water. Except to the extent the Federal Government de in writing, the Contractor agrees to comply with all applicable issued pursuant to the Clean Water Act, as amended, 33 U.S.C. §§ addition: (1) The Contractor agrees to protect underground sources of dr consistent with the provisions of the Safe Drinking Water Act of §§ 300f through 300j-6. (2) The Contractor agrees to comply with notice of violating f Executive Order No. 11738, "Administration of the Clean Air Act Control Act with Respect to Federal Contracts, Grants, or Loans, d. Use of Public Lands. The Contractor agrees that in implementin not use any publicly owned land from a park, recreation area, or national, State, or local significance as determined by the Fede jurisdiction thereof, and it will not use any land from a histor significance, unless the Federal Government makes the findings r 303(b) and 303(c). The Contractor also agrees to comply with joi 771 and 774, and 49 C.F.R. Part 622, when promulgated. e. Wild and Scenic Rivers. The Contractor agrees to comply with a provisions of the Wild and Scenic Rivers Act of 1968, as amended 32of 42 Revised 02/21/13 Page CFPTA Agenda Packet 12/18/201440 1287, relating to protecting components of the national wild and 43 C.F.R. Part 8350. f. Coastal Zone Management. The Contractor agrees to assure Proje with the approved State management program developed under the C Act of 1972, as amended, 16 U.S.C. §§ 1451 through 1465. g. Wetlands. The Contractor agrees to facilitate compliance with wetlands in accordance with Executive Order No. 11990, as amende at 42 U.S.C. § 4321 note. h. Floodplains. The Contractor agrees to comply with the flood ha floodplains in accordance with Executive Order No. 11988, as ame Management," 42 U.S.C. § 4321 note. i. Endangered Species and Fisheries Conservation. The Contractor comply with protections for endangered species set forth in the 1973, as amended, 16 U.S.C. §§ 1531 through 1544, and the Magnus Conservation Act, as amended, 16 U.S.C. §§ 1801 et seq. j. Historic Preservation. The Contractor agrees to encourage comp Federal historic and archaeological preservation requirements of Historic Preservation Act, as amended, 16 U.S.C. § 470f; with Ex "Protection and Enhancement of the Cultural Environment," 16 U.S Archaeological and Historic Preservation Act of 1974, as amended 469c, as follows: (1) In accordance with U.S. Advisory Council on Historic Prese regulations, "Protection of Historic and Cultural Properties," 3 agrees to consult with the State Historic Preservation Officer c identify properties and resources included in or eligible for in Historic Places that may be affected by the Project, and agrees that are affected. (2) The Contractor agrees to comply with all applicable Federa directives to avoid or mitigate adverse effects on those histori the Federal Government determines otherwise in writing. k. Indian Sacred Sites. The Contractor agrees to facilitate co preservation of places and objects of religious importance to Am Aleuts, and Native Hawaiians, in compliance with the American In note, except to the extent the Federal Government determines oth l. Mitigation of Adverse Environmental Effects. Should the propos result in adverse environmental effects, the Contractor agrees t to minimize the impact of those adverse effects, as required by applicable Federal laws and regulations, including 23 C.F.R. Par The Contractor agrees to comply with all environmental mitigatio identified as commitments in applicable environmental documents, assessments, environmental impact statements, memoranda of agree documents as required by 49 U.S.C. § 303) and agrees to comply w Federal Government might impose in a finding of no significant i 33of 42 Revised 02/21/13 Page CFPTA Agenda Packet 12/18/201441 The Contractor agrees that those environmental mitigation measur reference and made part of this Agreement for the Project. The deferred mitigation measures will be incorporated by reference a for the Project as soon as agreement with the Federal Government agrees that those mitigation measures agreed upon may not be mod the express written approval of the Federal Government. Section 26. Energy Conservation. The Contractor agrees to comply with the North Carolina Energy Policy Act of 1975 (N.C.G.S. 113B) issued in accordance w Conservation Act, as amended, 42 U.S.C. §§ 6321 et seq., except Department determines otherwise in writing. To the extent appli perform an energy assessment for any building constructed, reconh C.F.R. Part 622, Subpart C. Section 27. Charter Service Operations. FTA defines charter service as transportation using vehicles (buses or vans), equipment, or facilities funded under a group of persons who pursuant to a common purpose, under a sin charged for the vehicle or service, have acquired the exclusive travel together under an itinerary either specified in advance o place of origin. The Contractor acknowledges that Federal and State requirements facilities and equipment funded by Federal or State grant progra services unless it is determined that there are no willing and a service area. Federal law does not provide exceptions to these loaned or leased to other agencies or entities. The Contractor agrees that neither it nor any public transportat connection with a Project financed under 49 U.S.C. chapter 53 wi operations, except as authorized by 49 U.S.C. § 5323(d) and FTA Service," 49 C.F.R. Part 604, and any subsequent Charter Service that may be issued, except to the extent that FTA determines oth service agreement required by FTA regulations is incorporated by this Agreement for the Project. The Contractor understands and remedy specified in the charter service agreement, if a pattern found, the violator will be barred from receiving Federal transi determined by FTA or U.S. DOT. Section 28. School Transportation Operations. The Contractor agrees that neither it nor any public transportation operator performing work in connection wit U.S.C. chapter 53 will engage in school transportation operation students or school personnel exclusively in competition with pri operators, except as authorized by 49 U.S.C. §§ 5323(f) or (g), regulations, "School Bus Operations," 49 C.F.R. Part 605, and an Transportation Operations regulations or FTA directives that may 34of 42 Revised 02/21/13 Page CFPTA Agenda Packet 12/18/201442 transportation operations agreement required by FTA regulations and made part of this Agreement for the Project. The Contractor it or an operator violates that school transportation operations barred from receiving Federal transit assistance in an amount to DOT. Section 29. Geographic Information and Related Spatial Data . In accordance with U.S. OMB Circular A-Information and Related Spatial Data involving spatial data and geographic information systems activi indirectly, in whole or in part, by Federal assistance, consiste infrastructure promulgated by the Federal Geographic Data Commit FTA or the Department determines otherwise in writing. Section 30. Motor Carrier Safety. To the extent applicable, the Contractor agrees to comply with, and assures the compliance of its sub recipients, lessees, applicable provisions of the following regulations promulgated b Safety Administration (U.S. FMCSA): a. Financial Responsibility. The Contractor agrees as follows: (1) To the extent that the Contractor is engaged in interstate c not within a defined commercial zone, the Contractor agrees to c with U.S. FMCSA regu and insurance requirements. For recipients of Federal assistanc 49 U.S.C. §§ 5307, 5317, 5311, 5317 5317, 49 C.F.R. Part 387 is modified by 49 U.S.C. § 31138(e) (4) which reduces the amount of insuranc required of such recipients to the highest amount of any state i transit provider operates. (2) To the extent that the Contractor is engaged in interstate c within a defined commercial zone and is not a unit of government as Federal Government, a state, any political subdivision of a s agency established under a compact between states), the Contract agrees to comply with U.S. FMCSA b. Driver Qualifications Part 383. c. Substance Abuse Rules for Motor Carriers. The Contractor agr Part 382, which apply to transit providers that operate a commer that has a gross weight rating over 26,000 pounds or is designed (16) or more passengers, including the driver. Section 31. Substance Abuse. To the extent applicable, the Contractor, its subcontractors or their employees perform a safety-sensitive function under the Ag to comply with and assure compliance of its subcontractors, and g Use in Transit Operations," 49 CFR Part 655 and the following Federal s Federal Certification Regarding Alcohol Misuse and Prohibited Dr 49 CFR part 655, subpart I, the Contractor certifies, by signing 35of 42 Revised 02/21/13 Page CFPTA Agenda Packet 12/18/201443 established and implemented an alcohol misuse and anti-drug prog or will comply with all applicable requi Agreement. a. Drug-Free Workplace Drug-Free Workplace (Financial Assistance), 49 C.F.R. Part 32, t Workplace Act of 1988, 41 U.S.C. §§ 701 et seq. b. Alcohol Misuse and Prohibited Drug Use Misuse and Prohibited Drug Use in Transit Operat U.S.C. § 5331. Section 32. Safe Operation of Motor Vehicles. The Recipient agrees as follows: a. Seat Belt Use. In accordance with the provisions of Executive O Recipient is encouraged to adopt and promote on-the-job seat bel programs for its employees and other personnel that operate comp or personally operated vehicles, and to include this provision i leases, third party contracts, or other similar documents in con Section 33. Distracted Driving . includesText Messaging While DrivingIn accordance with Executive Order No. 13513, Federal Leadership on Reducing Text M October 1, 2009, 23 U.S.C.A. § 402 note, and DOT Order 3902.10, Driving December 30, 2009, the Grantee is encouraged to comply w Special Provision Section 34. Seat Belt Use encouraged to adopt and promote on-the-job seat belt use policie employees and other personnel that operate company-owned, rented vehicles, and to include this provision in any third party contr sub agreements involving the Project. Section 35.Text Messaging While Driving. In accordance with Executive Order No. 13513, Federal Leadership on Reducing Text Messaging While Driving Octo 402 note, and DOT Order 3902.10, Text Messaging While December 3 encouraged to comply with the term of the following Special Prov a. Definitions.As used in this Special Provision: stationary because of traffic, a traffic being in your vehicle (with or without the motor running) in a l safe and legal to remain stationary. to any handheld or other electric device, including the purpose of short message service texting, obtaining navigating information, or engaging in any other form electronic data communication. The term does not include the use electronic device for the limited purpose of entering a telephon call or answer an incoming call, unless the practice is prohibit b. Safety. The Grantee is encouraged to: 36of 42 Revised 02/21/13 Page CFPTA Agenda Packet 12/18/201444 (1) Adopt and enforce workplace safety policies to decrease cras drivers including policies to ban text messaging while driving (a) Grantee-owned or Grantee-rented vehicles or Government-owned vehicles; (b) Privately-owned vehicles when on official Project related bu work for or on behalf of the Project; or (c) Any vehicle, on or off duty, and using an employer supplied (2) Conduct workpla such as: (a) Establishment of new rules and programs or re-evaluation of text messaging while driving; and (b) Education, awareness, and other outreach to employees about with texting while driving. (3) Include this Special Provision in its subagreements with its contracts and also encourage its subrecipients, lessees, and thi with the terms of this Special Provision, and include this Speci subagreement, lease, and third party contract at each tier finan provided by the Federal Government. Section 36. Protection of Sensitive Security Information. To the extent applicable, the Contractor agrees to comply with 49 U.S.C. § 40119(b) and implem § 114(s) and implementing U.S. Department of Homeland Security, Section 37Disputes, Breaches, Defaults, or Other Litigation. The Contractor agrees that FTA and the Department have a vested interest in the settlement default, or litigation involving the Project. Accordingly: a. Notification to the Department. The Contractor agrees to notif writing of any current or prospective major dispute, breach, def the Federal/State Government's interests in the Project or the F administration or enforcement of Federal/State laws or regulatio name the Federal/State Government as a party to litigation for a Contractor agrees to inform the Department in writing before doi shall be responsible for notifying FTA. b. Federal/State Interest in Recovery. The Federal/State Governme to a proportionate share, based on the percentage of the Federal Project, of proceeds derived from any third party recovery, exce return any liquidated damages recovered to its Project Account i Federal/State share to the Department. c. Enforcement. The Contractor agrees to pursue all legal righ third party contract. d. FTA and Department Concurrence. The FTA and the Department res to concur in any compromise or settlement of any claim involving e. Alternative Dispute Resolution. The Department encourages the alternative dispute resolution procedures, as may be appropriate Section 38Fares and Services : Before increasing fares or instituting a major reduction of service, the Recipient agrees to use its established administrat consider public comment The Recipient agrees that the fares or individuals and handicapped individuals during nonpeak hours for involving Project property will not exceed one-half the rates thr 37of 42 Revised 02/21/13 Page CFPTA Agenda Packet 12/18/201445 individuals at peak hours, irrespective of whether the Project p Recipient or another entity connected with the Project, either t party contract, or otherwise. The Recipient also agrees to give presenting a Medicare card duly issued to that individual pursua Social Security Act, 42 U.S.C. §§ 401 et seq., or 42 U.S.C. §§ 1395 et. seq., respectively Section 39Amendments/Revisions to the Project. The Contractor agrees that a change in Project circumstances causing an inconsistency with the terms of or revision will require an amendment to this Agreement for the Project signed by the original signatories or their authorized designees or successors. The Co in the fundamental information submitted in its Application will Application or this Agreement for the Project. The Contractor a amendments and or revisions will be submitted in accordance with established by FTA and the Department. Section 40Information Obtained Through Internet Links. This Agreement may include electronic links/Web site addresses to Federal/State laws, regul other information. The Department does not guarantee the accura through such links. Accordingly, the Contractor agrees that inf electronic link within this Agreement does not represent an offi law, regulation, or directive, and might be inaccurate. Thus, i links is neither incorporated by reference nor made part of this Register and the Code of Federal Regulations are the official so pertaining to the Federal Government. Section 41. Severability. If any provision of the FTA Master Agreement or this Agreement the Project is determined invalid, the remainder of that Agreeme remainder would continue to conform to the requirements of appli regulations. Section 42. Termination of Agreement. a. The Department of Transportation. In the event of the Contractor's noncompliance with any of the provisions of this Agreement, the Department may Agreement by giving the Contractor thirty (30) days advance noti reasonable progress on the Project or violation of this Agreemen substantial performance of the Project shall provide sufficient terminate the Agreement for the Project. In general, terminatio assistance for the Project will not invalidate obligations prope before the termination date to the extent those obligations cann Department determines that the Contractor has willfully misused failing to make adequate progress, failing to make reasonable an property, or failing to comply with the terms of this Agreement reserves the right to require the Contractor to refund the entir assistance provided for the Project or any lesser amount as the Expiration of any Project time period established for the Projec expiration or termination of the Agreement for the Project. The notice of Agreement termination, shall allow the Contractor a re for noncompliance. Upon noncompliance with the nondiscriminatio Agreement or with any of the said rules, regulations or orders, cancelled, terminated, or suspended in whole or in part and the ineligible for contracts in accordance with procedures authorize and No. 11375, and such other sanctions may be imposed and remed 38of 42 Revised 02/21/13 Page CFPTA Agenda Packet 12/18/201446 the said Executive Order or by rule, regulation or order of the otherwise provided b above, the Department may terminate its participation in the Pro the concurrence of the Contractor within sixty (60) days in adva In the event that the Contractor does not comply with the provis Department shall impose such sanction to the project as it or FT appropriate. b. The Contractor. The Contractor may terminate its participation in the Project by notifying and receiving the concurrence of the Department sixty termination. Section 43.Contract Administrators. All notices permitted or required to be given by one Party to the other and all questions about this Agreement from o respective initial Contract Administrators are set out below. E postal address, street address, telephone number, fax number, or Administrator by giving timely written notice to the other Party For the Department: IF DELIVERED BY US POSTAL SERVICE IF DELIVERED BY ANY OTHER MEANS Name: MR CHARLIE C. WRIGHT Name: MR CHARLIE WRIGHT Title: FINANCIAL MANAGER Title: FIANCIAL MANAGER Agency: NCDOT/PTD Agency: NCDOT/PTD MSC: 1550 MSC Street TRANSPORTATION BLDG Address: 1 S WILMINGTON ST RM 524 City/Zip: RALEIGH NC 27699-1550 City: RALEIGH NC Phone: 919-707-4674 Fax: 919-733-2304 Email: CCWRIGHT@NCDOT.GOV For the Contractor: IF DELIVERED BY US POSTAL SERVICE IF DELIVERED BY ANY OTHER MEANS Name: Name: Title: Title: Agency: Agency: Postal Street Address: Address: City/Zip: City: Phone: Fax: Email: 39of 42 Revised 02/21/13 Page CFPTA Agenda Packet 12/18/201447 Section 44.Federal Certification Regarding Debarment . The Contractor certifies, by signing this Agreement, its compliance with Subsection 7c of this Agreem Section 45.Federal Certification Regarding Alcohol Misuse and Prohibited Drug Use . As 55, subpart I, the Contractor certifies, by signing this Agreeme that it has established and implemented an alcohol misuse and an Al 31 of this Agreement. Section46. Incorporation of FTA Terms: The preceding provisions include, in part, certain Standard Term DOT, whether or not expressly set forth in the preceding contrac provisions required by DOT, as set forth in FTA Circular 4220.IF reference. Anything to the contrary herein notwithstanding, all deemed to control in the event of a conflict with other provisio The Contractor shall not perform any act, fail to perform any ac (name of grantee) requests which would cause (name of grantee) t terms and conditions. 40of 42 Revised 02/21/13 Page CFPTA Agenda Packet 12/18/201448 IN WITNESS WHEREOF, this Agreement has been executed by the Depa the State of North Carolina, and the Contractor by and through a and is effective the date and year first above written. Upon Exe Grantee named below, the Grantee affirms this award, and enters NCDOT. CAPE FEAR PUBLIC TRANSPORTATION AUTHORITY DERAL TAX ID NUMBER: BY: CHAIRMAN TITLE: (SEAL) ATTEST: TITLE: DEPARTMENT OF TRANSPORTATION BY: DEPUTY SECRETARY FOR TRANSIT TITLE: ATTEST: TITLE: SECRETARY 41of 42 Revised 02/21/13 Page CFPTA Agenda Packet 12/18/201449 Attachment B Certification Regarding Lobbying (for bids and/or awards) The Contractor certifies, to the best of his or her knowledge an (1) No Federal appropriated funds have been paid or will be paid undersigned, to any person for influencing or attempting to infl an agency, a Member of Congress, an officer or employee of Congr Member of Congress in connection with the awarding of any Federa Federal grant, the making of any Federal loan, the entering into and the extension, continuation, renewal, amendment, or modifica grant, loan, or cooperative agreement. (2) If any funds other than Federal appropriated funds have been person for influencing or attempting to influence an officer or Member of Congress, an officer or employee of Congress, or an em Congress in connection with this Federal contract, grant, loan, undersigned shall complete and submit Standard Form- (3) The Contractor shall require that the language of this certi documents for all subawards at all tiers (including subcontracts grants, loans, and cooperative agreements) and that all subrecip accordingly. This certification is a material representation of fact upon whi transaction was made or entered into. Submission of this certifi making or entering into this transaction imposed by section 1352 person who fails to file the required certification shall be sub $10,000 and not more than $100,000 for each such failure. ____ Title: ________________________________________________________________________ 42of 42 Revised 02/21/13 Page CFPTA Agenda Packet 12/18/201450 Cape Fear Public Transportation Authority Pursuant to NCGS § 143-318.12, the Cape Fear Public Transportation Authority has establ the following schedule of meetings for 2015. The schedule is on file with the Authority Secretary and available for public inspection by contacting Wave Transit at (910) 343-0106 and at the following URL: http://www.wavetransit.com/Portals/0/documents/2015_Meeting_Sche Any changes to the following schedulewill comply with NCGS § 143-318.12. Day Date Time Location Thursday January 22, 2015 12:00 pm Forden Station, 505 Cando Street ThursdayFebruary 26, 2015 12:00 pmForden Station, 505 Cando Street ThursdayMarch 26, 201512:00 pmForden Station, 505 Cando Street 1 Thursday April 23, 2015 10:00 am 1480 Castle Hayne Road Thursday May 28, 2015 12:00 pm Forden Station, 505 Cando Street ThursdayJune 25, 2015 12:00 pmForden Station, 505 Cando Street ThursdayJuly 23, 2015 12:00 pmForden Station, 505 Cando Street Thursday August 27, 2015 12:00 pm Forden Station, 505 Cando Street Thursday September 24, 2015 12:00 pm Forden Station, 505 Cando Street Thursday October 22, 2015 12:00 pm Forden Station, 505 Cando Street Thursday November 19, 2015 12:00 pm Forden Station, 505 Cando Street Thursday December 17, 2015 12:00 pm Forden Station, 505 Cando Street 1 Authority planning retreat CFPTA Agenda Packet 12/18/201451 Cape Fear Public Transportation Authority Grant Management Procedures Effective Date: 01 December 2014 Grant Applications: In preparation for submission of a Federal Transit Administratiogrant, the Executive Director, Director of Finance and Administration and other members of Authority staff will prepare an annual budget for board approval in compliance with l guidelines and anticipated and/or allocated funding. The budget will be compliant with the adopted Wave Transit capital and operating budget for the year in which funding is being sought. Local funding sources equal to the amount required in any grant agreement(s) will be identified and verified prior to grant submission. Staff will confirm the project(s) are properly authorized in the Improvement Program (MTIP), the State Transportation Improvement Metropolitan Transportation Plan (MTP), the Authority Short Range Plan (SRTP), and the adopted Capital Improvement Program. Verification that the Authoritys Civil Rights compliance is cur Administrations Transit Electronic Award and Management (TEAM-Web) system or Transit Award Management System (TrAMS) is required prior to grant submission. Upon publication of annual FTA allocations in the Federal Register, the Executive Director or his/her designee will draft the project in TEAM-Web or TrRAMS. A project name will be issued by the Authority. The draft ID number will begin with NC to assist Region IV in easily the project. The Executive Director or his/her designee will work with FTA Region IV to address any issues that may arise during project development. Once FTA concurrence is received that the project is eligible for submission to the US Department of Labor, the Executive Director will submit the project through TEAM-Web or TrAMS. This process usually occurs in the spring, but may be delayed by federal budget authorization. Should only a portion of the grant be eligible for award, staff will determine, in consultation with FTA Region, whether to apply for a partial award or file the grant once a federal budget is adopted. Upon receipt from FTA that DOL concurrence has been granted, the Executive Director or his or her designee will execute the award and notify the Director of Finance and Administration of the grant number and the availability of funds. Grants Management Throughout the lifecycle of an FTA project, the Executive Director, Director of Finance and Administration and project manager will monitor the progress of the project to on-time, and within the established project budget. If the project inadequate, the Executive Director, Director of Finance and Administration and project manager will evaluate the project; identify the reason for any budget deficit, and identify a resolution to complete the project within the established period of performance and adopted project. Should additional funding be necessary to complete the project and is available; the Executive Director will complete a budget revision in TEAM-Web and notify FTA Region IV of the request. The accurate recording and tracking of grant expenditures by Activity Line Item (ALI) is a critical component to grants management and budget compliance. Operating and maintenance expenditures are composed of a large number of transactions and typically make up only two ALI categories. These expenditures are grouped at the project l CFPTA Agenda Packet 12/18/201452 require that expenditures be tracked on an expenditure by expenditure basis. All grants that are deemed to require this level of budging are coded with the appropriate ALI upon entry in to the accounting system. This level of coding assists in properly possible over runs. At a minimum, monthly grant reports are compiled for active gran compared to budget. The project manager will ensure that all invoices include an ALI number to assist the Finance Department in tracking ALIs. As required, the Executive Director or his/her designee will complete the Milestone and Progress Report (MPR) in TEAM-Web or TrAMS for each open grant. MPRs in TEAM-Web for each open grant are due on a quarterly basis no later than thirty (30) days afte quarter. FFRs are due by April 30, July 30, October 30, and January 30.Staff will evaluate open projects to ensure that they are on schedule. MPRs are required to be filed quart open grant. The Executive Director or their designee will consu each open grant prior to submitting the MPR. Consultation with the Director of Finance and Administration prior to MPR submittal is required to ensure that the MPR and FF congruent. ALI verification between the MPR and FFR is required being properly reported to FTA. The Executive Director or Director of Finance and Administration will complete the Federal Financial Report (FFR) in TEAM-Web or TrAMS for each open grant on a quarterly basis no later than thirty (30) days after the close of any quarter. FFRs are due by April 30, July 30, October 30, and January 30. Staff will evaluate open projects to ensure that they are within Unliquidated obligations, which are defined as any financial obligation that has been made by the Authority but not reimbursed by FTA will be reported as required. Obligations could be in the form of a purchase order, contract or any other legally bind Authority will have a financial obligation at some point. Budget revisions in TEAM-Web or TrAMS will be prepared by Director of Finance and Administration. Budget revisions are limited to changes to the original proje original scope of the project. Budget revisions will be utilize make the best use of FTA resources. Budget revisions will be en-Web or TrAMS by the Executive Director or Director of Finance and Administration. Concurrence between the Executive Director and the Director of Finance and Administratioitting a budget revision. The concurrence must be written in the form Project Amendments in TEAM-Web or TrAMS will be prepared by the Executive Director and/or the Director of Finance and Administration. Project Amendments are used to add funding to an approved grant agreement under the original scope of the project approval of the Authority Board of Directors which will identify to a project including a narrative describing the reason for any shortfall in of funding for a grant amendment is also required prior to seeki coordinate with Region IV the need for an amendment versus submi Electronic Clearinghouse (ECHO) Funds Disbursement The Authority Executive Director is authorized to draw funds froElectronic Clearinghouse. He or she may extend this authorization to the Director of Finance and Administration. Periodic financial reports are run by the Director of Finance and Administration. These financials are sorted by grant funding source and compared to project budget. Categories of expenditures are reviewed by the Director of Finance and Administration for proper coding both by general ledger account code and ALI. Once all expenditures a and accuracy, final grant P & L statements are run. CFPTA Agenda Packet 12/18/201453 Referring to the original grant agreement and specific funding r calculations are preformed to account for fares and matching reqThe net result of these calculations would be the eligible draw for the period. These reviews and calculations are performed by the Director of Finance and Administration. Once complete, the report is signed and forwarded on to the Accountant to review and written concurr drawn. The Executive Director may authorize the report in the absence o Accountant. Once reviewed and approved, the accounts receivable is recorded to the general ledger and the appropriate draw is requested through the ECHO system. Two copi are printed. One is forwarded to Accounts Receivable and the other is maintained with the supporting draw documentation. ECHO draw frequency is authorized to occur on a schedule that ma Authority. ECHO draws shall be reconciled quarterly to the general ledger to assist in preparing the FFR reports. ECHO draws are normally calculated on a reimbursement basis. Oc when dealing with large project expenditures or during times of limited cash flow funds are drawn prior to disbursement. These draws are based on immediately due and eligll Federal funds drawn in advance are disbursed within 48 hours of receipt via check or electronic funds transfer. Federal Financial Reporting At the close of every fiscal quarter the Director of Finance & Administration reports grant progress through TEA-Web or TrAMS on a grant by grant basis. This includes reconciling grant expenditures with grant draws and preparing estimates of obligat Reporting is required to be completed within 30 days following the end of the fiscal quarter. FFR reporting is tracked and reconciled utilizing a combination reports and an files, including notes documenting any variances reporting is also facilitated by the Grants Management procedure to budget and ALI tracking of expenditures. Closeout and Deobligation Once a federally funded project is complete, the Executive Director or his/her designee will closeout the project in TEAM-Web or TrAMS. Any unexpended funds will be evaluated to determine if they can be obligated to another project. The Executive Director and/or Director of Finance and Administration will issue the final MPR and FFR in TEAM-Web or TrAMS. The project budget will be balanced to deobligate any surplus funds notified that the grant has been marked for closeout. Adopted at a regular meeting on: November 20, 2014 ________________________ Jeff Petroff, Chairman ATTEST: ________________________ (seal) Don Betz, Secretary CFPTA Agenda Packet 12/18/201454 Cape Fear Public Transportation Authority PO Box 12630 Wilmington, NC 28405 910-343-0106 Fax: 910-343-8317 Purchase Order Vendor Brasco International 32400 Industrial Dr. Madison Heights, MI 48071 800-893-3665 Date:9-Dec-14PO #:15-0662 Ship To:Bill To: Cape Fear Public Transportation AuthorityCape Fear Public Transportation Authority 1110 Castle StreetPO Box 12630 Wilmington, NC 28401Wilmington, NC 28405 910-343-0106 For:Twelve Passgenger Shelters QtyPart #DescriptionUnit CostExt cost 12Passenger Shelters$6,870.00$82,440.00 Tax Total cost$82,440.00 GL NumberAmountDivisionGrant Code% NC-34-0002$FP ALI #113210$FP $ Accrued Sales Tax 21400 $ Sales Tax 12600 AuthorizedEntered This instrument has been preaudited in the manner required by th Budget and Fiscal Control Act Jean M. SmithDate Director of Operations CFPTA Agenda Packet 12/18/201455 Cape Fear Public Transportation Authority (A Component Unit of the City of Wilmington) Financial and Compliance Reports Year Ended June 30, 2014 CFPTA Agenda Packet 12/18/201457 Contents Financial Section Independent Auditor's Report Management's Discussion and Analysis (Unaudited) Basic Financial Statements: Statement of Net Position 7 Statement of Revenue, Expenses and Changes in Net Position 8 Statement of Cash Flows 9 Notes to Basic Financial Statements Supplementary Financial Information: Schedule of Revenue and Expenditures, Budget and Actual, Non Modified Accrual Basis, Operating Fund Schedule of Revenue and Expenditures, Budget and Actual, Non Modified Accrual Basis, Capital Project Fund 23 Internal Control and Compliance Section Internal Control Over Financial Reporting and on Compliance and Based on an Audit of Financial Statements Performed in Accordanc with Government Auditing Standards Compliance for Major Federal Program and on Internal Control Over Compliance in Accordance With OMB Circular A-133 and the State Single Audit Implementation Act Compliance for Major State Program and on Internal Control Over Compliance in Accordance With Applicable Sections of OMB Circular A-133 and the State Single Audit Implementation Act Schedule of Findings and Questioned Costs Corrective Action Plan33 Summary Schedule of Prior Audit Findings34 Schedule of Expenditures of Federal and State Awards35 Notes to the Schedule of Expenditures of Federal and State Award36 CFPTA Agenda Packet 12/18/201458 FINANCIAL SECTION Report of Independent Certified Public Accountants Basic Financial Statements Notes to Basic Financial Statements Supplementary Financial Information CFPTA Agenda Packet 12/18/201459 (This Page Was Intentionally Left Blank) CFPTA Agenda Packet 12/18/201460 To the Honorable Chairman and Members of the Board of Directors Cape Fear Public Transportation Authority Wilmington, North Carolina Report on the Financial Statements We have audited the accompanying financial statements of Cape Fe (the Authority) as of and for the year ended June 30, 2014, and statements, which collectively comprise contents. Management is responsible for the preparation and fair presentat accordance with accounting principles generally accepted in the the design, implementation, and maintenance of internal control presentation of financial statements that are free from material error. Our responsibility is to express an opinion on these financial s conducted our audit in accordance with auditing standards genera America and the standards applicable to financial audits contain Government Auditing Standards, issued by the Comptroller General of the United States. Those st perform the audit to obtain reasonable assurance about whether t material misstatement. An audit involves performing procedures to obtain audit evidence nt, including the assessment of the risks of material misstatement of the financia preparation and fair presentation of the financial statements in appropriate in the circumstances, but not for the purpose of exp n audit also includes evaluating the appropriateness of accounting policies used and the reasonab estimates made by management, as well as evaluating the overall statements. We believe that the audit evidence we have obtained is sufficien our audit opinion. 1 CFPTA Agenda Packet 12/18/201461 Opinion In our opinion, the financial statements referred to above prese financial position of Cape Fear Public Transportation Authority its financial position and its cash flows for the year then ende generally accepted in the United States of America. Other Matters Required Supplementary Information Discussion and Analysis, on pages 3 6, be presented to supplement the basic financial statements. Such information, although not a part of the basic financial sta Accounting Standards Board who considers it to be an essential p basic financial statements in an appropriate operational, econom certain limited procedures to the required supplementary informa standards generally accepted in the United States of America, wh management about the methods of preparing the information and co knowledge we obtained during our audit of the basic financial st or provide any assurance on the information because the limited sufficient evidence to express an opinion or provide any assuran Other Information Our audit was conducted for the purpose of forming an opinion on collectively comprise Cape Fear Public Transportation Authority accompanying schedules in the supplementary financial informatio federal and state awards as required by U. S. Office of Manageme Audits of and the State Single Audit Implementation Act States, Local Governments, and Non-Profit Organizations are presented for purposes of additional analysis and are not a statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to Such information has been subjected to the auditing procedures a statements and certain additional procedures, including comparin directly to the underlying accounting and other records used to to the basic financial statements themselves, and other addition standards generally accepted in the United States of America. In stated, in all material respects, in relation to the basic finan Other Reporting Required by Government Auditing Standards In accordance with , we have also issued our report dated November 24, Government Auditing Standards 2014, on our consideration of the Cape Fear Public Transportation A financial reporting and on our tests of its compliance with cert contracts, and grant agreements and other matters. The purpose o our testing of internal control over financial reporting and com not to provide an opinion on internal control over financial rep integral part of an audit performed in accordance with in considering Government Auditing Standards Cape Fear Public Transportation Wilmington, North Carolina November 24, 2014 2 CFPTA Agenda Packet 12/18/201462 MANAGEMENTS DISCUSSION AND ANALYSIS CFPTA Agenda Packet 12/18/201463 (This Page Was Intentionally Left Blank) CFPTA Agenda Packet 12/18/201464 Cape Fear Public Transportation Authority (Unaudited) June 30, 2014 As management of Cape Fear Public Transportation Authority (the analysis of the financial activities of the Authority for the fiscal year ended June 30, 2014. Financial Highlights The assets of the Authority exceeded its liabilities at the clo14,483,016 (net position). Th net position increased by $3,998,157 during the fiscal year. The Authority had an operating loss of $6,394,383. Capital asset additions, including construction in process, tot year. The Authority had no long-term debt outstanding as of June 30, 2014. Overview of the Financial Statements This discussion and analysis are intended to serve as an introduto Cape Fear Public Transportation . The financial statements of the Authority consist of three components. They are as follows: Basic Financial Statements Notes to the Basic Financial Statements The Basic Financial Statements are prepared using the accrual ba. They consist of three statements, as required for entities engaged only in business-type activ. The first statement is the statement of net position whereby net between assets plus any deferred outflows and liabilities plus a. Assets and liabilities are classified between current and long-term. investment in assets and obligations to creditors. Liquidity and financial flexibility can be evaluated using the information contained in this statement. The next statement is the statement of revenue, expenses and cha. This statement is used in evaluating whether the Authority has recovered all of its costs t. Its information is used in determining credit worthiness. The final required statement is the statement of cash flows. This statement reports cash inflows and outflows in the following categories: operating, investing, cap financing activities. Based on this data, the user can determine the sources of cash, the change in cash. The notes to the basic financial statements provide more detaile conjunction with the statements. After the notes, supplementary financial information is provided 3 CFPTA Agenda Packet 12/18/201465 Cape Fear Public Transportation Authority (Unaudited) June 30, 2014 Financial Analysis Fiscal year 20132014 saw the Authority continuing the construction of the new oper maintenance facility on Division Drive. A discussion of other financial developments follows. Net position . Net investment in capital assets (net of related liabilities) totaled $14,735,971 buildings, other improvements, construction in progress, and lan. This is the main concentration of the s net position as of June 30, 2014. Unrestricted net position has no restrictions on its use. Cape Fear Public Transportation Authority Condensed Statement of Net Position Figure 1 June 30, 2014 2013 Current assets$ 2,602,378$ 1,260,957 Capital assets, net 14,986,609 10,686,346 Total assets 17,588,987 11,947,303 Current liabilities 3,105,971 1,462,444 Net position: Invested in capital assets 14,735,971 10,669,732 Unrestricted (deficit)(252,955) (184,873) Total net position$14,483,016$ 10,484,859 A comparison of the statement of net position to the prior year $3,998,157, resulting primarily from receiving federal funding and the new operations and maintenance facility. Total assets increased by $5,641,684 and liabilities increased by $1,643,527 from the prior year. The statement of revenue, expenses and changes in net position f operating expenses exceeded operating revenue and non-operating . The Authority earned $2,522,353 in transportation service fares and fees. Capital contributions, consisting of federal, State and local grants, totaled $4,820,681 for the year ended June 30, 2014. Operating grants and contributions totaled $5,571,859. 4 CFPTA Agenda Packet 12/18/201466 Cape Fear Public Transportation Authority (Unaudited) June 30, 2014 Condensed Statement of Revenue, Expenses and Change in Net Position Figure 2 Year Ended June 30, 2014 2013 Operating revenue$ 2,522,353$ 2,324,352 Operating expenses 8,916,736 9,235,949 Operating loss(6,394,383) (6,911,597) Nonoperating revenue 5,571,859 5,662,859 Loss before capital contributions(822,524) (1,248,738) Capital contributions 4,820,681 994,243 Increase (decrease) in net position$ 3,998,157$ (254,495) For the year ended June 30, 2014, the increase in net position is primarily due to receiving federal funding and state matches for the construction of the new operat. The Authority had an operating loss of $6,394,383 from its operation5,571,859 and capital contributions of $4,820,681. Capital contributions were primarily related to the construction a new operations and maintenance facility. The Authority received an operating subsidy of $1,285,000 from its primary government, City of Wilmington, North Carolina. The rema operating and capital grants were received from the Federal Transit Adm Department of Transportation and New Hanover County. increased by $198,001 from the prior year primarily due to a 33% increase in ended June 30, 2013, starting in February, 2013, and all of the . expenses decreased by $319,213 over the prior year primarily due to decr maintenance and repair costs, and depreciation. Capital Assets.The undepreciated cost of the Authority capital assets consisted of the following as of June 30, 2014. June 30, Capital Assets 2014 2013 Land$ 2,717,404$ 2,717,404 Buildings and improvements 5,428,224 5,428,224 Buses 8,692,512 8,692,512 Other vehicles 1,753,476 1,837,887 Furniture, fixtures, machinery and equipment 1,541,266 1,495,262 Construction in progress 5,804,076 741,027 Total$ 25,936,958$ 20,912,316 The Authority capital asset additions during the year ended June the construction of the new operations and maintenance facility. See Note 4 in the notes to basic financial statements for additi 5 CFPTA Agenda Packet 12/18/201467 Cape Fear Public Transportation Authority (Unaudited) June 30, 2014 Long-Term Debt. The Authority had no outstanding debt as of June 30, 2014. Economic Factors The Authority serves customers primarily in New Hanover County b Counties. New Hanover County currently has an estimated population of 213,. Of that amount, 112,067 reside in the City of Wilmington, which is the Authority. The 2014 unemployment rate in the City was 6.4%, which was the same as the State of North Carolina unemployment rate, but higher than the federal unemployment rate number of different economic factors and takes these in consider budget reductions at the State level, as well as potential reduc closely monitored as well as any adverse trends in fuel costs. However, the Board and management are prepared to respond to any reductions in revenue or increased costs accordingly . All of these factors were included in preparing the Authority budget for the 2015 fiscal year. Requests for Information area. Questions concerning any of the information found in this report information should be directed to the Executive Director, Cape Fear Publi Forden Station, 505 Cando Street, Wilmington, NC, 28405 Albert Eby, Executive Director Cape Fear Public Transportation Authority Wilmington, North Carolina 6 CFPTA Agenda Packet 12/18/201468 BASIC FINANCIAL STATEMENTS CFPTA Agenda Packet 12/18/201469 (This Page Was Intentionally Left Blank) CFPTA Agenda Packet 12/18/201470 Cape Fear Public Transportation Authority Statement of Net Position June 30, 2014 Assets Current Assets Cash and cash equivalents (Note 2) $ 155,689 Accounts receivable (Note 7) 26,470 Due from other governments (Note 3) 2,294,145 Inventory of material and supplies 126,074 Total current assets 2,602,378 Noncurrent Assets Capital assets (Note 4) Land 2,717,404 Building and improvements 5,428,224 Buses 8,692,512 Other vehicles 1,753,476 Furniture, fixtures, machinery and equipment 1,541,266 Construction in progress 5,804,076 25,936,958 Less accumulated depreciation (10,950,349) Total capital assets 14,986,609 Total assets 17,588,987 Liabilities Current Liabilities Accounts payable Trade 2,042,586 Capital 250,638 Due to primary governments (Note 5) 612,300 Compensated absences payable 151,489 Accrued expenses 48,958 Total current liabilities 3,105,971 Commitments and Contingencies (Notes 4, 6, 8, 9 and 10) Net Position Net investment in capital assets 14,735,971 Unrestricted (deficit) (252,955) Total net position $ 14,483,016 See Notes to Basic Financial Statements. 7 CFPTA Agenda Packet 12/18/201471 Cape Fear Public Transportation Authority Statement of Revenue, Expenses and Changes in Net Position Year Ended June 30, 2014 Operating Revenue Charges for services (Note 7) $ 2,522,353 Operating Expenses Labor 3,580,425 Fringe benefits 1,131,698 Fuel and lubricants 1,126,155 Purchased services (Note 10) 537,780 Repairs and maintenance 423,708 Insurance 890,920 Advertising 48,217 Tires and tubes 82,901 Utilities 90,836 Materials and supplies 24,577 Office supplies 5,124 Other operating expenses 137,847 Depreciation 836,548 Total operating expenses 8,916,736 Operating loss (6,394,383) Nonoperating Revenue Federal grants 2,984,432 State grants 937,590 Operating subsidy City of Wilmington, primary government 1,285,000 Operating subsidy from New Hanover County 273,000 Interest income 52 Miscellaneous income 89,901 Gain on disposition of capital assets 1,884 Total nonoperating revenue 5,571,859 Loss before capital contributions (822,524) Capital Contributions Federal grants 4,310,730 State grants 502,562 Other governments 7,389 4,820,681 Total capital contributions Increase in net position 3,998,157 Net Position, Beginning 10,484,859 Net Position, Ending $ 14,483,016 See Notes to Basic Financial Statements. 8 CFPTA Agenda Packet 12/18/201472 Cape Fear Public Transportation Authority Statement of Cash Flows Year Ended June 30, 2014 Cash Flows From Operating Activities $ 898,990 Cash received from customers and users (2,181,643) Cash payments to suppliers for goods and services (4,701,967) Cash payments to or on behalf of employees Net cash used in operating activities (5,984,620) Cash Flows From Noncapital Financing Activities Operating grants 3,922,022 Operating subsidy from primary government 1,285,000 Operating subsidies from other governments 273,000 Advance from primary government 1,012,300 Repayment of advance from primary government (666,667) Forgiveness of advance from other government (133,000) Miscellaneous 89,901 Net cash provided by noncapital financing activities 5,782,556 Cash Flows From Capital and Related Financing Activities Proceeds from sale of capital assets 1,884 Acquisition of capital assets (4,902,787) Capital contributions 4,820,681 Net cash used in capital and related financing activities (80,222) Cash Flows From Investing Activities Interest on investments 52 Net decrease in cash and cash equivalents (282,234) Cash and Cash Equivalents Beginning 437,923 Ending $ 155,689 Reconciliation of Operating Loss to Net Cash Used in Operating Activities Operating loss $ (6,394,383) Adjustments to reconcile operating loss to net cash used in operating activities: Depreciation 836,548 Changes in assets and liabilities: Accounts receivable (1,623,363) Inventory (292) 1,191,037 Compensated absences payable 10,156 Accrued expenses (4,323) Net cash used in operating activities$ (5,984,620) See Notes to Basic Financial Statements. 9 CFPTA Agenda Packet 12/18/201473 (This Page Was Intentionally Left Blank) 10 CFPTA Agenda Packet 12/18/201474 NOTES TO BASIC FINANCIAL STATEMENTS CFPTA Agenda Packet 12/18/201475 (This Page Was Intentionally Left Blank) CFPTA Agenda Packet 12/18/201476 Cape Fear Public Transportation Authority Notes to Basic Financial Statements Note 1. Summary of Significant Accounting Policies The accounting policies of Cape Fear Public Transportation Autho accounting principles (GAAP) as applicable to governments. The Governmental Accounting Standards Board (GASB) is the accepted standard setting body for establishand financial reporting principles. The following is a summary of the more significant accounting po. Reporting Entity: Cape Fear Public Transportation Authority (the Authority), opera created in 2005 by a concurrent resolution of New Hanover County (City). The interlocal agreement adopted by the County and City provides transportation facilities and transportation services throughout outside its corporate limits and effectively merged the transpor the County and City. The interlocal agreement between the County and the City, with a term of two years beginning July 1, 2004, may be terminated upon six-month party. Unless notice of termination is provided, the agreement shall be successive five-year terms. The agreement is currently in effect through June 30, 2016. The Authority is governed by an eleven-member board. The Authority Board consist of five members appointed by the County, five members appointed by the City, and County and City from a human service agency served by the public. Each proposed annual budget shall be submitted to the County and Commissioners and City Council. The County and City shall provide annual funding to the Authorit their budgets permit. Any debt necessary for the maintenance, improvement or expansion shall be incurred by the County or City for the benefit of the Author. The Authority shall establish and revise, from time-to-time, a schedule of rates, fees and charges for the use of the services of the Authority. An interlocal agreement between the City and the Authority, effe that the City will (a) make available to the Authority on July 1 approved in the adopted City budget, and (b) allow the Authority federal and/or State operating funds. The agreement may be terminated by the mutual written consent of the parties or upon the lack of an award or termination of federal and/or S. For financial reporting purposes, in conformity with GASB Codification Sec component unit of the City and is included . Basis of Presentation: All activities of the Authority are accounted for within a singl proprietary (enterprise) fund. Enterprise funds may be used to report any activity for which a charged to external users for goods or services. Activities are to be reported as enterprise funds required if any one of the following criteria is met. a. The activity is financed with debt that is secured solely by a pledge of fees and charges of the activity. Debt that is secured by a pled and charges and the full faith and credit of a related primary g even if that government is not expected to make any paymentsis not payable solely from fees and charges of the activity. (Some debt may be secured, in proceeds but should be considered as payable "solely" from the r 11 CFPTA Agenda Packet 12/18/201477 Cape Fear Public Transportation Authority Notes to Basic Financial Statements Note 1. Summary of Significant Accounting Policies (Continued) b. Laws or regulations require that the activities' costs of provi costs (such as depreciation or debt service), be recovered with with taxes or similar revenues. c. The pricing policies of the activity establish fees and charg including capital costs (such as depreciation or debt service). Measurement Focus and Basis of Accounting: In accordance with North Carolina General Statutes, the Authorit during the year using the modified accrual basis of accounting, statements in accordance with GAAP as applied to governmental en The accounting and financial reporting treatment applied to a fu focus. Enterprise funds are accounted for on the economic resources mea accrual basis of accounting. Under the accrual basis of accounting, revenue is recorded when expenses are recorded at the time liabilities are incurred, regardless o place. Nonexchange transactions, in which the Authority gives (or receives) value without directl receiving (or giving) equal value in exchange, include grants an. Revenue from grants and donations is recognized in the fiscal year in which all eligibil Enterprise funds distinguish operating revenues and expenses fro. Operating revenues and expenses generally result from providing services and prod pal ongoing operations. The principal operating revenues of the Authority are charges for transportation services. The principal operating expenses for the Authority now include depreciation of capital assets, salaries and fringe benefits, operating expense. All revenues and expenses not meeting this definition are report revenues and expenses. Under the terms of grant and loan agreements, the Authority fund expenditures by a combination of specific cost-reimbursement gra operating revenues. Thus, when operating and capital expenditures are incurred, ther and unrestricted net position available to finance these expenditures. apply cost-reimbursement grant resources to fund these expenditures, grants and then by operating revenues. Budgets: Budgets are adopted utilizing the modified accrual basis of acco. An annual budget ordinance is adopted for the operating fund (subfu. All annual appropriations lapse at fiscal year end. A project budget ordinance is adopted for the capital project fund (subfund). Project appropriations lapse at the completion of the project. 12 CFPTA Agenda Packet 12/18/201478 Cape Fear Public Transportation Authority Notes to Basic Financial Statements Note 1. Summary of Significant Accounting Policies (Continued) Expenditures may not legally exceed appropriations at the fund l fund level for the capital project fund. Any appropriations whic appropriations for a fund must be approved by the Board of Direc Commissioners. The budget may be amended as necessary by the governing board. A budget calendar is included in the North Carolina General Statutes which prescribes th the budget procedure are to be performed. The following schedule lists the tasks to be performed and the date by which each is required to be completed. April 30 Each department head will transmit to the budget office estimates for their department for the budget year. June 1 The budget and the budget message shall be submitted to t. The public hearing on the budget should be scheduled at this time. July 1 The budget ordinance shall be adopted by the governing b Cash and Cash Equivalents: The Authority considers all highly-liquid investments (including months or less when purchased to be cash equivalents. Deposits and Investments: All deposits of the Authority are made in board-designated offic required by State statute [G.S. 159-31]. Official depositories may be established with any bank or saving and loan association whose principal office is located in North Carolin. Also, the Authority may establish time deposit accounts such as NOW and SuperNOW accounts, money m of deposits. State statute [G.S. 159-30(c)] authorizes the Authority to invest in obligations of the Unite obligations fully guaranteed both as to principal and interest b of North Carolina; bonds and notes of any North Carolina local g of certain non- acceptances; and the North Carolina Capital Management Trust (NC. The securities of the NCCMT cash portfolio, a SEC-registered (2a-7) money market mutual fund, are valu Accounts Receivable: Accounts receivable include grant receivables for which eligibil. Management evaluates receivables by identification of troubled a experience. Management has determined that all receivables are collectible a accounts is required. 13 CFPTA Agenda Packet 12/18/201479 Cape Fear Public Transportation Authority Notes to Basic Financial Statements Note 1. Summary of Significant Accounting Policies (Continued) Inventory of Material and Supplies: Materials (principally maintenance parts) and supplies inventories are valued at the lower of cost (first-in, first-out) or market. Capital Assets, Including Construction in Progress: Capital assets are defined by the government as assets with an i and estimated useful life in excess of two years. All purchased capital assets are valued at original cost at the time of acquisition, with cost including any net constructio. Donated capital assets are valued at their estimated or appraised fair market value on the . The cost of normal maintenance and repairs which do not add to the value of the asset or ma not capitalized. The Autho a transfer facility, garage and maintenance facilities, buses, other vehicles, certain equipment, land and construction . Depreciation is charged to operations using a straight-line meth useful lives: Estimated Asset ClassUseful Lives Building and improvements40 years Buses Other vehicles Furniture, fixtures, machinery and equipment The Authority may consider capital assets impaired if both (a) t asset is large in magnitude and (b) the event or change in circu of the capital asset. Impaired assets will be appropriately reduced in value or discar. The Authority owns no significant assets that would be considered impaired. Compensated Absences: As more fully described in Note 10, the Authority contracts with management services, including the furnishing of certain employe equipment. As of June 30, 2014, the Authority recorded a liability of $151, benefits for employees of the management company and the Authority. vacation policy provides for the accumulation of up to 30 days earned vacation leave for all employees, with such leave been fully vested when earned. The Authority has adopted a last-in first-out method of accumula. The portion of accumulated leave time which is expected to be liquidated after the to be material and, therefore, no provision for noncurrent compe financial statements. 14 CFPTA Agenda Packet 12/18/201480 Cape Fear Public Transportation Authority Notes to Basic Financial Statements Note 1. Summary of Significant Accounting Policies (Continued) 120 days for employees of the management company and indefinitely for Authori vest. The Authority has no obligation for accumulated sick leave until accrual for sick leave has been made. The management company provides other benefits to its employees that are reimbursed by agreement. Net Position: Net position consists of the following: Net investment in capital assets This component of net position reflects amounts expended for cap assets, net of related debt, if any. Unrestricted net position This component of net position consists of net positions that do not meet the definition of restricted or invested in capital assets. Use of Estimates: The preparation of financial statements requires management to m affect the reported amounts of assets, liabilities, and disclosu date of the financial statements and the reported amounts of rev period. Actual results could differ from those estimates. The primary accounting estimates used by the Auestimation of lives of the capital assets and valuation of receivables for collectability. Note 2. Cash and Cash Equivalents At June 30, 2014, cash and cash equivalents is comprised of the Deposits: All the deposits of North Carolina local governments are either two methods. Under the Dedicated Method, all deposits that exceed the federal coverage level are collateralized with secu. Under the Pooling Method, which is a statewide collateral pool, . Since the State Treasurer is acting in a fiduciary capacity for the Authority, t . The amount of the pledged collateral is based on an approved averaging method for non-interest bearing deposits and the actual current deposits. Depositories using the Pooling Method report to the State Treasu pooled collateral covering uninsured deposits. The State Treasurer does not confirm this information with the Authority or the escrow agents. Because of the inability to measure the exact amounts of collate pledged for the Authority under the Pooling Method, the potential exis this risk may increase in periods of high cash flows. However, the State Treasurer of North Carolina enforces strict standards of financial stability for each deposi the Pooling Method. The Authority has no formal policy regarding the custodial credi relies on the State Treasurer to enforce standards of minimum capitali financial institutions and to monitor them for compliance. The Authority complies with the provisions of G.S. 159-31 when designating official depositories and verifying that de 15 CFPTA Agenda Packet 12/18/201481 Cape Fear Public Transportation Authority Notes to Basic Financial Statements Note 2. Cash and Cash Equivalents (Continued) At June 30, 2014153,377 and a bank balance of $183,675. The bank balance was fully covered by federal depository insuran Cash on Hand: 4, consisted of various petty cash funds totaling $1,469. Investments: At June 30, 2014, the Authoritys consisted of $843 in North Carolina Capital Management . no policy for management interest rate or credit risk. Note 3. Due From Other Governments The amount due from other governments as of June 30, 2014, consi State operating grant revenues$ 230,604 Federal operating grant revenues 1,863,641 Local government sales and use taxes 104,093 Other local government receivables 95,807 $ 2,294,145 16 CFPTA Agenda Packet 12/18/201482 Cape Fear Public Transportation Authority Notes to Basic Financial Statements Note 4. Capital Assets Capital asset activity for the year ended June 30, 2014, was as Balance Balance June 30, 2013 AdditionsDeletionsJune 30, 2014 Capital assets not being depreciated: Land$ 2,717,404$ $-- $2,717,404 5,063,049-5,804,076 Construction in progress 741,027 3,458,431 5,063,049-8,521,480 Capital assets being depreciated: Buildings and improvements 5,428,224--5,428,224 Buses 8,692,512--8,692,512 Other vehicles 1,837,887 27,758(112,169)1,753,476 Furniture, fixtures, machinery and equipment 1,495,262 46,004-1,541,266 Total capital assets being depreciated 17,453,885 73,762(112,169)17,415,478 Less accumulated depreciation for: Buildings and improvements (876,731)(146,896)-(1,023,627) (367,113)-(7,390,638) Buses (7,023,525) Other vehicles (1,352,858)(176,888)112,169(1,417,577) Furniture, fixtures, machinery and equipment (972,856)(145,651)-(1,118,507) Total accumulated depreciation(10,225,970) (836,548)112,169(10,950,349) Total capital assets being depreciated, net 7,227,915 6,465,129 Capital assets, net$ 10,686,346 $14,986,609 At June 30, 2014, the Authority has remaining commitments for an original commitment was for $8,976,500. Net change orders as of total commitment of $9,248,026. Note 5. Due to Governments The Authority has an agreement with the City whereby the City, subject to the ava its sole discretion allow the Authority access to additional nec exceed $400,000, less any additional operating funds provided by annual appropriation for public transportation, as an advance on federal and State funds for public transportation. The advance shall be repaid to the primary government the earlier of June 30 of each year or 120 days following the advance. In the event the Authority does not repay the advance, the primary government will withhold the outstandi appropriation. As of June 30, 2014, the Authority had non-interest bearing advato the City. Additionally, the Authority had a payable outstanding to the Cit Authority had 17 CFPTA Agenda Packet 12/18/201483 Cape Fear Public Transportation Authority Notes to Basic Financial Statements Note 6. Retirement Plans North Carolina Local G Plan Description. System (LGERS), a cost-sharing, multiple-employer defined benefit pens state of North Carolina. LGERS provides retirement and disability benefits to plan member beneficiaries. Article 3 of G.S. Chapter 128 assigns the authority to establish provisions to the North Carolina General Assembly. LGERS is included in the Comprehensive Annual Financial Report (CAFR) for the state of North Carolina. and required supplementary information to LGERS. That report may be obtained by writing to the Office of the State Controller, 1410 Mail Service Center, Raleigh, North Carolin 707-0500. Plan members are required to contribute six percent of their an. The Funding Policy. Authority is required to contribute at an actuarial determined rate. For 7.07% of annual covered payroll. The contribution requirement of members and of Cape Fear Pubic Transportation Authority is established and may be amended by the Nor. tributions to LGERS for the years ended June 30, 2014, 2013, and 2012 were $54,890, $53,628, and $67,353, respectively. The contributions made by the Authority equaled the required contributions for each year. Supplemental Retirement Income Plan of North Carolina . The Authority contributes to the Supplemental Retirement Income Plan Description Carolina (Plan), a Section 401(k) defined contribution pension plan adop and administered by the Prudential Insurance Company of America. The Plan provides for retirement benefits for all employees that have elected to become members of the . . The Authority has elected to contribute on behalf of all employe Funding Policy employee contributions up to 4.5% of eligible compensation. Authority contributions on behalf of employees were $9,010 for the year ended June 30, 2014. The Plan provides for voluntary contributions on part of all employees of not less than 1% of eligible compens. Voluntary contributions by employees were $34,492 for the year ended June 30, 2014. 18 CFPTA Agenda Packet 12/18/201484 Cape Fear Public Transportation Authority Notes to Basic Financial Statements Note 7. Major Customers . Transactions with various governmental agencies accounted for the following revenues and related ac 2014: Percentage of Accounts CustomerRevenuesOperating RevenuesReceivable University of North Carolina at Wilmington$ 789,22431.3%$ 22,540 New Hanover County Department of Social Services 560,32722.2% 2,238 Department of Aging 25,2151.0% 1,570 Other Agencies 5,8270.2% - $ 1,380,593$ 26,348 Note 8. Contingencies The Authority receives significant operating and capital grants Under the terms of federal and State grants, monitoring and peri may be questioned as not being appropriate expenditures under th. Such audits could lead to reimbursements to the grantor agencies. s disallowances arising from such audits, if any, will not be sign. No provisions for the refund of grant monies have been made in the accompanying financial statements. Also, under the terms of federal and State assistance programs, entirely with federal or State funds have asset disposition rest assets or proceeds from the approved sales in accordance with fe. At June 30, 2014, the Authority was a party to various legal dis. In the opinion of the Aut, the ultimate effect of these matters will not have a material Note 9. Risk Management The Authority is exposed to various risks of loss related to tor assets; errors and omissions; injuries to employees; and natural. Company, up to $1 million in public officials liability through Landmark American Insurance Company, $2 million general liabilit Insurance Company, up to $1 million in auto coverage through Nat personal and advertising injury per person or organization with Essex, $500,000 ERISA and through Hiscox, and $4 million commerch Lexington Insurance Company. The Authority does not currently ma structural property is located in a flood plain. In accordance with G.S. 159- Director of Finance is bonded for $250,000. The remaining employ bonded under a blanket bond for $250,000. 19 CFPTA Agenda Packet 12/18/201485 Cape Fear Public Transportation Authority Notes to Basic Financial Statements Note 10. Management Agreement The Authority retains a transit management company to provide ma for the transportation system. For the year ended June 30, 2014, those services were provided u contract with First Transit, Inc. (FTI), who shall employ, furni necessary for the management and operation of the public transpo. In addition, the agreement provides for assistance with certain other managerial to-day operations of the Authority. For the year ended June 30, 2014, the Authority incurred managem totaling $373,926 which is included in purchased services. During 2014, the contract with FTI was extended through June 30, 2016, and provides for minimum payments of $37 years ended June 30, 2015 and 2016, respectively. Note 11. Pronouncements Issued but Not Yet Effective The GASB has issued several pronouncements prior to June 30, 201 impact future financial presentations. Management has not currently determined what, if any, impact imp statements may have on the financial statements of the Authority An ending June 30, 2015. GASB Statement Number 69, Government Combinations and Disposals of Government Authority beginning with its year ending June 30, 2015. GASB Statement Number 71, Pension Transition for Contributions Made Subsequent to the Measurement Date (an amendment of GASB Statement No. 68)Authority beginning with its year ending June 30, 2015. 20 CFPTA Agenda Packet 12/18/201486 SUPPLEMENTARY FINANCIAL INFORMATION CFPTA Agenda Packet 12/18/201487 (This Page Was Intentionally Left Blank) CFPTA Agenda Packet 12/18/201488 Cape Fear Public Transportation Authority(Page 1 of 2) Operating Subfund Schedule of Revenue and Expenditures, Budget and Actual, Non-GAAP, Modified Accrual Basis For the Year Ended June 30, 2014 Variance, Positive BudgetActual(Negative) Operating revenues Farebox revenues$ 1,626,540 $ 1,806,917 $ 180,377 Government contracted services 901,475 715,436 (186,039) Total operating revenues 2,528,015 2,522,353 (5,662) Operating expenditures Labor 3,590,581 Fringe benefits 1,131,698 Fuel and lubricants 1,126,155 Purchased services 537,780 Repairs and maintenance 423,708 Insurance 890,920 Advertising 48,217 Tires and tubes 82,901 Taxicabs and leases - Utilities 90,836 Materials and supplies 24,577 Office supplies 5,124 Other operating expenses 137,847 Total operating expenditures 8,265,000 8,090,344 174,656 Excess of operating expenditures (5,736,985) (5,567,991) 168,994 over operating revenues (Continued) 21 CFPTA Agenda Packet 12/18/201489 Cape Fear Public Transportation Authority(Page 2 of 2) Operating Subfund Schedule of Revenue and Expenditures, Budget and Actual, Non-GAAP, Modified Accrual Basis (Continued) For the Year Ended June 30, 2014 Variance, Positive BudgetActual(Negative) Nonoperating revenues $ 2,984,432 $ (47,644) Federal grants$ 3,032,076 937,590 (131,743) State grants 1,069,333 1,285,000 - Operating subsidy from primary government 1,285,000 273,000 12,424 Operating subsidies from other governments 260,576 89,953 (47) Other income 90,000 Total nonoperating revenues 5,736,985 5,569,975 (167,010) Excess revenues over expenditures $ - 1,984 $ 1,984 Reconciliation: modified accrual basis with full accrual: Intergovernmental revenue from Capital Project Fund 4,820,681 Depreciation (836,548) Gain on disposal of capital assets 1,884 Compensated absences (change) 10,156 $ 3,998,157 Increase in net position 22 CFPTA Agenda Packet 12/18/201490 Cape Fear Public Transportation Authority Capital Project Subfund Schedule of Revenue and Expenditures, Budget and Actual, Non-GAAP, Modified Accrual Basis From Inception and for the Fiscal Year Ended June 30, 2014 TotalActual CurrentTotal ProjectPrior YearTo Date EstimatesYears Revenue Restricted intergovernmental: Federal grants$ 10,971,884 $ 363,002 $ 4,310,730$4,673,732 State grants 1,264,285 45,375 502,562547,937 Primary government 1,494,435 -7,3897,389 Total revenue 13,730,604 408,377 4,820,6815,229,058 Expenditures Section 5307 Capital 4,922,618 -427,033427,033 Section 5309 Capital 7,500,000 424,991 5,088,765 4,663,774 Section 5311 Capital 568,486 -46,00446,004 Advanced Technology Program 15,750 --- Total expenditures5,136,8115,561,802 13,006,854 424,991 Excess of expenditures over revenues$ 723,750 $ (16,614) $ (316,130) $(332,744) 23 CFPTA Agenda Packet 12/18/201491 (This Page Was Intentionally Left Blank) 24 CFPTA Agenda Packet 12/18/201492 INTERNAL CONTROL AND COMPLIANCE SECTION CFPTA Agenda Packet 12/18/201493 (This Page Was Intentionally Left Blank) CFPTA Agenda Packet 12/18/201494 Independent on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance With Government Auditing Standards To the Honorable Chairman and Members of the Board of Directors Cape Fear Public Transportation Authority Wilmington, North Carolina We have audited, in accordance with the auditing standards gener America and the standards applicable to financial audits contain Government Auditing Standards issued by the Comptroller General of the United States, the fina Transportation Authority as of and for the year ended June 30, 2 financial statements, which collectively comprise Cape Fear Publ financial statements, and have issued our report thereon dated N Internal Control Over Financial Reporting In planning and performing our audit of the financial statements Transportation Authority's internal control over financial repor procedures that are appropriate in the circumstances for the pur financial statements, but not for the purpose of expressing an o Public Transportation rnal control. Accordingly, we do not express an opinion on the effectiveness of Cape Fear Public Transportation Authority A exists when the design or operation of a control does not allow deficiency in internal control management or employees, in the normal course of performing thei detect and correct, misstatements on a timely basis. A is a deficiency, or a material weakness combination of deficiencies, in internal control, such that ther timely basis. A is a deficiency, or a combination of deficiencies, in internal significant deficiency that is less severe than a material weakness, yet important enou with governance. Our consideration of internal control was for the limited purpos section and was not designed to identify all deficiencies in int weaknesses or significant deficiencies. Given these limitations, deficiencies in internal control that we consider to be material weaknesses may exist that have not been identified. 25 CFPTA Agenda Packet 12/18/201495 Compliance and Other Matters As part of obtaining reasonable assurance about whether Cape Fea financial statements are free from material misstatement, we per certain provisions of laws, regulations, contracts, and grant ag have a direct and material effect on the determination of financ an opinion on compliance with those provisions was not an objectand, accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. Purpose of This Report The purpose of this report is solely to describe the scope of ou internal control or on compliance. This report is an integral part of an Government Auditing Standards this communication is not suitable for any other purpose. Wilmington, North Carolina November 24, 2014 26 CFPTA Agenda Packet 12/18/201496 Independent on Compliance for Major Federal Program and on Internal Control Over Compliance in Accordance With OMB Circular A-133 and the State Single Audit Implementation Act To the Honorable Chairman and Members of the Board of Directors Cape Fear Public Transportation Authority Wilmington, North Carolina Report on Compliance for Major Federal Program We have audited Cape Fear Public Transportation Authority) compliance with the types of compliance requirements described in the and the OMB Circular A-133 Compliance SupplementAudit , issued by the Local Government Commission, that Manual for Governmental Auditors in North Carolina could have a direct ended June 30, 2014 results section of the accompanying schedule of findings and que Management is responsible for compliance with the requirements o grants applicable to its federal programs. Our responsibility is to express an opinion on compliance for ea programs based on our audit of the types of compliance requireme our audit of compliance in accordance with auditing standards ge America; the standards applicable to financial audits contained , issued Government Auditing Standards by the Comptroller General of the United States; OMB Circular A-, Audits of States Local and the State Single Audit Implementation Act. Those Governments, and Non-profit Organizations standards, OMB Circular A-133, and the State Single Audit Implementation Act require that we perform the audit to obtain reasonable assurance about whether n compliance requirements referred to above that could have a dire program occurred. An audit includes examining, on a test basis, compliance with those requirements and performing such other pro in the circumstances. We believe that our audit provides a reasonable basis for our op federal program. However, our audit does not provide a legal det Opinion on Major Federal Program In our opinion, Cape Fear Public Transportation Authority compli of compliance requirements referred to above that could have a d major federal programs for the year ended June 30, 2014. 27 CFPTA Agenda Packet 12/18/201497 Report on Internal Control Over Compliance Management of Cape Fear Public Transportation Authority is respo effective internal control over compliance with the types of com planning and performing our audit of compliance, we considered t compliance with the types of requirements that could have a dire federal program to determine the auditing procedures that are ap purpose of expressing an opinion on compliance for each major fe internal control over compliance in accordance with OMB Circular expressing an opinion on the effectiveness of internal control o express an opinion on the effectiveness of Cape Fear Public Tran internal control over compliance. A exists when the design or operation of a control over deficiency in internal control over compliance compliance does not allow management or employees, in the normal functions, to prevent, or detect and correct, noncompliance with federal program on a timely basis. A is a material weakness in internal control over compliance deficiency, or combination of deficiencies, in internal control reasonable possibility that material noncompliance with a type o program will not be prevented, or detected and corrected, on a t significant deficiency in is a deficiency, or a combination of deficiencies, in internal internal control over compliance compliance with a type of compliance requirement of a federal pr weakness in internal control over compliance, yet important enou with governance. Our consideration of internal control over compliance was for th paragraph of this section and was not designed to identify all d compliance that might be material weaknesses or significant defi deficiencies in internal control over compliance that we conside material weaknesses may exist that have not been identified. The purpose of this report on internal control over compliance i testing of internal control over compliance and the results of t OMB Circular A-133. Accordingly, this report is not suitable for Wilmington, North Carolina November 24, 2014 28 CFPTA Agenda Packet 12/18/201498 Independent Report on Compliance for Major State Program and on Internal Control Over Compliance in Accordance With Applicable Sections of OMB Circular A-133 and the State Single Audit Implementation Act To the Honorable Chairman and Members of the Board of Directors Cape Fear Public Transportation Authority Wilmington, North Carolina Report on Compliance for Major State Program We have audited Cape Fear Public Transporta compliance requirements described in the , Audit Manual for Governmental Auditors in North Carolina issued by the Local Government Commission that could have a dire 4 questioned costs. ility Management is responsible for compliance with the requirements o grants applicable to its State programs. Our responsibility is to express an opinion on compliance for ea based on our audit of the types of compliance requirements refer compliance in accordance with auditing standards generally accep standards applicable to financial audits contained in , issued by the Government Auditing Standards Comptroller General of the United States; applicable sections of , and the State Single Audit Implementation Act. Audit Manual for Government Auditors in North Carolina Those standards, applicable sections of OMB Circular A-133, and the Sta Act require that we plan and perform the audit to obtain reasona noncompliance with the types of compliance requirements referred material effect on a major State program occurred. An audit incl procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our op pliance. Opinion on Major State Program In our opinion, Cape Fear Public Transportation Authority compli of compliance requirements referred to above that could have a d major State programs for the year ended June 30, 2014. 29 CFPTA Agenda Packet 12/18/201499 Report on Internal Control Over Compliance Management of Cape Fear Public Transportation Authority is respo effective internal control over compliance with the types of com compliance with the types of requirements that could have a dire State program to determine the auditing procedures that are appr purpose of expressing an opinion on compliance for each major St internal control over compliance in accordance with applicable s State Single Audit Implementation Act, but not for the purpose o effectiveness of internal control over compliance. Accordingly, effectiveness of internal control over compliance. A exists when the design or operation of a control over deficiency in internal control over compliance compliance does not allow management or employees, in the normal functions, to prevent, or detect and correct, noncompliance with State program on a timely basis. A is a deficiency, material weakness in internal control over compliance or combination of deficiencies, in internal control over complia possibility that material noncompliance with a type of complianc not be prevented, or detected and corrected, on a timely basis. significant deficiency in internal control is a deficiency, or a combination of deficiencies, in internal over compliance a type of compliance requirement of a federal program that is le internal control over compliance, yet important enough to merit governance. Our consideration of internal control over compliance was for th paragraph of this section and was not designed to identify all d compliance that might be material weaknesses or significant defi deficiencies in internal control over compliance that we conside material weaknesses may exist that have not been identified. The purpose of this report on internal control over compliance i testing of internal control over compliance and the results of t applicable sections of OMB Circular A-133 and the State Single A this report is not suitable for any other purpose. Wilmington, North Carolina November 24, 2014 30 CFPTA Agenda Packet 12/18/2014100 Cape Fear Public Transportation Authority Schedule of Findings and Questioned Costs For the Fiscal Year Ended June 30, 2014 Section 1. Summary of Independent Audit Financial Statements Unmodified Internal control over financial reporting: Material weakness(es) identified? Yes No Significant deficiency(ies) identified? Yes None Reported Noncompliance material to financial statements noted? Yes No Federal Awards Internal control over major federal programs: Material weakness(es) identified? Yes No Significant deficiency(ies) identified? Yes None Reported major federal program: Unmodified Any audit findings disclosed that are required to be reported in accordance with Section 510(a) of Circular A-133? Yes No Identification of major federal program: Program Name CFDA Federal Transit Formula Grant (Urbanized Area) Formula Planning Cluster/Capital investment Grants 20.507/20.500 Dollar threshold used to distinguish between Type A and Type B Programs $300,000 Auditee qualified as low-risk auditee? Yes No (Continued) 31 CFPTA Agenda Packet 12/18/2014101 Cape Fear Public Transportation Authority Schedule of Findings and Questioned Costs (Continued) For the Fiscal Year Ended June 30, 2014 Section 1. Summary of Independent Audit (Continued) State Awards Internal control over major State programs: Material weakness(es) identified? Yes No Significant deficiency(ies) identified? Yes None Reported major State program: Unmodified Any audit findings disclosed that are required to be reported in accordance with State Single Audit Implementation Act Yes No Identification of major State program: Program Name State ID Number State Maintenance Assistance Program DOT 09 Section 2. Financial Statement Findings None reported Section 3. Federal Award Findings and Questioned Costs None reported Section 4. State Award Findings and Questioned Costs None reported 32 CFPTA Agenda Packet 12/18/2014102 Cape Fear Public Transportation Authority Corrective Action Plan For the Fiscal Year Ended June 30, 2014 No corrective action plan is required for the current year. 33 CFPTA Agenda Packet 12/18/2014103 Cape Fear Public Transportation Authority Summary Schedule of Prior Audit Findings For the Year Ended June 30, 2014 None reported in prior year. 34 CFPTA Agenda Packet 12/18/2014104 Cape Fear Public Transportation Authority Schedule of Expenditures of Federal and State Awards Year Ended June 30, 2014 Federal Grantor/Pass ThroughCFDAGrantor'sExpenditures Grantor/Progam TitleNumberNumberFederalStateLocal Federal Assistance U. S. Department of Tranportation Pass-Through Federal Transit Administration: Urbanized Area Formula Planning Cluster Formula Grants (Operating)20.507NC-90-4502 $ 186,752$ -$ 186,751 Formula Grants (Operating)20.507NC-90-4537 1,479,468 - 1,479,468 Formula Grants (Capital)20.507NC-90-0545 573,000 - 143,250 Formula Grants (Capital)20.507NC-95-0062 20,000 - 6,001 Formula Grants (Capital)20.507NC-95-0067 233,833 - 58,458 Capital Investment Grants20.500NC-04-0043 3,948,778 498,239 438,753 Capital Investment Grants20.500NC-04-0525 307,353 39,575 48,847 Total Urganized Area Formula Planning Cluster 6,749,184 537,814 2,361,528 Pass-Through North Caolina Department of Transportaion Formula Grants for other than Urbanized Areas (Operating)20.50914-CT-052A 134,739 8,420 30,561 Urbanized Areas (Capital)20.50914-CT-052C 34,595 4,324 4,324 Urbanized Areas (Operating)20.51614-JA-052 160,230 - 160,230 Urbanized Areas (Capital) New Freedom Program20.52113-NF-052 140,413 - 140,411 Total U. S. Department of Transportation 7,219,161 550,558 2,697,054 State Grants (all direct) Department of Transportation Public Transportation Division State Maintenance Assitance ProgramDOT-0913-SM-090 - 653,722 - Pass-Through New Hanover County Rural Operating Assistance ProgramDOT-2204-MA-002 - 229,461 13,283 Total Deparment of Transporation - 883,183 13,283 Total Federal and State Expenditures $ 7,219,161$ 1,433,741$ 2,710,337 35 CFPTA Agenda Packet 12/18/2014105 Cape Fear Public Transportation Authority Notes to the Schedule of Expenditures of Federal and State Awards For the Year Ended June 30, 2014 Note 1. Basis of Presentation The accompanying schedule of expenditures of federal and State a grant activity of Cape Fear Public Transportation Authority and of accounting. The information in this schedule is presented in accordance with Circular A-133, and the Audits of State, Local Governments, and Non-Profit OrganizationsState Single . Therefore, some amounts presented in this schedule may differ fr Audit Implementation Act presented in, or used in the preparation of, the basic financial 36 CFPTA Agenda Packet 12/18/2014106 Cape Fear Public Transportation Authority Report to the Board of Directors December 18, 2014 CFPTA Agenda Packet 12/18/2014107 ·w b©·w wz©7 {·ur C© zzm·r b/ tuhu .ã zzm·r b/ h u u C ÞÞÞu-m 7©;äu- December 18, 2014 Board of Directors Cape Fear Public Transportation Authority P.O. Box 12630 Wilmington, North Carolina 28405 Attention: Chairperson We are pleased to present this report related to our audit of th Public Transportation Authority (the Authority) for the year end certain matters required by professional standards to be communi responsibility for Cape Fear Public Transportation Authority This report is intended solely for the information and use of th is not intended to be, and should not be, used by anyone other t pleasure to respond to any questions you have about this report. continue to be of service to Cape Fear Public Transportation Aut CFPTA Agenda Packet 12/18/2014108 Contents Required Communications 1-2 Summary of Significant Accounting Estimates 3 Summary of Recorded Audit Adjustments 4 Summary of Uncorrected Misstatements 5 Exhibit ASignificant Written Communications Between Management and Our Firm Representation Letter CFPTA Agenda Packet 12/18/2014109 Required Communications Generally accepted auditing standards (AU-C 260, ) require the auditor to promote effective two-way communication With Governance and those charged with governance. Consistent with this requirem responsibilities regarding the financial statement audit as well are significant and relevant to your responsibility to oversee t AreaComments Our Responsibilities With Our responsibilities under auditing standards generally accepted Regard to the Financial the United States of America; issued Government Auditing Standards Statement Audit by the Comptroller General of the United States; the provisions Single Audit Act; OMB Circular A- Compliance and the State Single Audit Implementation Act hav been Supplement described to you in our arrangement letter dated May 22, 2014. Overview of the Planned We have issued a separate communication regarding the planned Scope and Timing of the scope and timing of our audit and have discussed with you our Financial Statement Audit identification of and planned audit response to significant risks material misstatement. Accounting Policies and Preferability of Accounting Policies and Practices Practices Under generally accepted accounting principles, in certain circumstances, management may select among alternative accounting practices. In our view, in such circumstances, management has selected the preferable accounting practice. Adoption of, or Change in, Accounting Policies Management has the ultimate responsibility for the appropriateness of the accounting policies used by the Authority. The Authority adopted two new accounting standards during the year. The Authority adopted GASB Statement No 67, Financial Reporting for Pension Plans an and GASB Statement No. 70, amendment of GASB Statement No.25 Accounting and Financial Reporting for Non-Exchange Financial . GASB 67 improves financial reporting by state and local Guarantees governmental pension plans. GASB 70 relates to financial statement recognition of liabilities associated with guarantees made by local governments. The effect of this both of these statements on financial reporting was insignificant. Significant or Unusual Transactions We did not identify any significant or unusual transactions or significant accounting policies in controversial or emerging areas for which there is a lack of authoritative guidance or consensus. Summary information about the process used by management in formulating particularly sensitive accounting estimates and abou conclusions regarding the reasonableness of those estimates is i attached Summary of Significant Accounting Estimates. Audit Adjustments Audit adjustments proposed by us and recorded by Cape Fear Public Transportation Authority are shown on the attached Summary of Recorded Audit Adjustments. Page 1 CFPTA Agenda Packet 12/18/2014110 AreaComments Uncorrected Misstatements An uncorrected misstatement is summarized in the attached Summary of Uncorrected Misstatements. Disagreements With We encountered no disagreements with management over the Management application of significant accounting principles, the basis for managements judgments on any significant matters, the scope of the audit, or significant disclosures to be included in the financia statements Consultations With Other We are not aware of any consultations management had with other Accountants accountants about accounting or auditing matters. Significant Issues No significant issues arising from the audit were discussed with Discussed With subject of correspondence with management. Management Significant Difficulties We did not encounter any significant difficulties in dealing with Encountered in Performing management during the audit. the Audit SignificantWritten Copies of significant written communications between our firm and the Communications Between management of the Authority, including the representation letter Management and Our Firm provided to us by management, are attached as Exhibit A. Page 2 CFPTA Agenda Packet 12/18/2014111 Cape Fear Public Transportation Authority Summary of Significant Accounting Estimates Year Ended June 30, 2014 Accounting estimates are an integral part of the preparation of experience about past and current events and certain assumptions monitor throughout the year the process used to determine and re June 30, 2014, financial statements. Basis for Our Conclusions on ManagementsReasonableness of EstimateAccounting PolicyEstimation ProcessEstimate Depreciation of capital Capital assets, including Depreciation by straight-Estimation process is assets property and equipment, line method over the consistent with software, are recorded estimated useful life of accounting policy and in at cost less the asset. Useful lives accordance with accumulated are estimated by accounting principles depreciation. management. generally accepted in the United States of America. Page 3 CFPTA Agenda Packet 12/18/2014112 Cape Fear Public Transportation Authority Summary of Recorded Audit Adjustments Year Ended June 30, 2014 Debit (Credit) DESCRIPTIONASSETSLIABILITIESEQUITYREVENUEEXPENSES To adjust depreciation expense and associated $ accumulated depreciation for asset #11136$ 5,384 $ -$ (5,384) $ - (5,384) $ $ -(5,384) Total effect$ $ 5,384 $ -(5,384) Page 4 CFPTA Agenda Packet 12/18/2014113 Cape Fear Public Transportation Authority Summary of Uncorrected Misstatements Year Ended June 30, 2014 During the course of our audit, we accumulated an uncorrected mi management to be immaterial, both individually and in the aggreg financial statements and the related financial statement disclos. Following is a summary of this difference. Debit (Credit) DESCRIPTIONASSETSLIABILITIESNET POSITIONREVENUEEXPENSES Reversed opening net position misstatement$ - $ - $ - $ - $ - Non-reversed opening net position misstatement - - - - - To record Making Waves Foundation activity 5,370 - (5,370) (8,379) 8,891 $ (8,379) $ 8,891 Total effect$ (5,370) $ 5,370 $ - Page 5 CFPTA Agenda Packet 12/18/2014114 Exhibit ASignificant Written Communications Between Management and Our Firm CFPTA Agenda Packet 12/18/2014115 CFPTA Agenda Packet 12/18/2014116 CFPTA Agenda Packet 12/18/2014117 CFPTA Agenda Packet 12/18/2014118 CFPTA Agenda Packet 12/18/2014119 CFPTA Agenda Packet 12/18/2014120 CFPTA Agenda Packet 12/18/2014121 CFPTA Agenda Packet 12/18/2014122 CFPTA Agenda Packet 12/18/2014123 Monthly Passenger Summary November 2014 Total Passengers Fixed Route 180,000120,000 160,000 100,000 140,000 120,00080,000 100,000 60,000 80,000 60,00040,000 40,000 20,000 20,000 00 JulAugSepOctNovJulAugSepOctNov 2013/201496,540124,927153,473159,527138,3952013/201490,75899,47898,451101,71190,799 2014/201594,390128,378164,496168,394133,9242014/201588,831101,346101,217109,96887,566 Change-2.23%2.76%7.18%5.56%-3.23%Change-2.12%1.88%2.81%8.12%-3.56% Seahawk Shuttle Paratransit 70,000 6,000 60,000 5,000 50,000 - 4,000 40,000 3,000 30,000 2,000 20,000 10,000 1,000 0 0 JulAugSepOctNov JulAugSepOctNov 2013/201482320,42950,43352,33543,220 2013/2014 4,9595,0204,5895,4814,376 2014/201545322,16358,23553,20441,974 2014/2015 5,1064,8695,0445,2224,384 Change-44.96%8.49%15.47%1.66%-2.88% Change 2.96%-3.01%9.92%-4.73%0.18% CFPTA Agenda Packet 12/18/2014124 Passengers by Route November 2014 Fixed Route No. NamePassengersTransfers 101Princess Place16,3302,886 103Oleander East6,2071,276 104Northeast4,739945 105Medical Center6,8081,300 106Shipyard Blvd5,5201,024 107College Road2,296338 108Market Street5,3731,021 201Carolina Beach Road8,9481,266 202Monkey Junction6,4411,226 203Trolley3,594 204Brunswick Connector2,207442 205Longleaf Park7,4171,404 207North3,605887 209Independence7,3001,474 301Pleasure Island781 TOTAL 87,56615,489 UNCW 701Blue3,774 712Teal4,037 702Green3,608 703Red4,041 704Yellow3,267 711Yellow Express8,096 705Loop1,524 706Point to Point0 707Red Express 11,188 709Loop Express 2,439 UNCW Total 41,974 Para-Transit Services ADA Passengers 1,333 Non-ADA Passengers 3,051 Para-Transit Total 4,384 TOTAL PASSENGERS 133,924 CFPTA Agenda Packet 12/18/2014125 FIXED ROUTEMONTHLYFiscal Year to Date This Month % Change Ridership Statistics CurrentLast Year% ChangeCurrentPrior Total Bus Passenger Trips 83,972 86,188-2.57% 464,598 454,0232.33% Total Trolley Passenger Trips 3,594 4,611-22.06% 24,330 27,174-10.47% Total UNCW Passenger Trips 41,974 43,220-2.88% 176,029 167,2405.26% Total Fixed Route Passenger Trips 129,540 134,019-3.34% 664,957 648,4372.55% Average Weekday Passenger Trips 6,025 5,41011.36% Average Saturday Passenger Trips 2,038 2,162-5.74% Average Sunday Passenger Trips 976 1,075-9.17% Operating Statistics - Fixed Route Total Revenue Miles 101,161 104,381-3.09% 519,343 520,394-0.20% Total Revenue Hours 7,291 7,586-3.89% 36,866 36,993-0.34% Accidents Non Preventable 40100.00% 11 10 10.00% Accidents Preventable30100.00% 9 728.57% Passenger Trips/Revenue Mile 1.28 1.28-0.27%1.281.252.76% Passenger Trips/Revenue Hour 17.77 17.670.58%18.0417.532.90% Operator Overtime 0.07%9.05%-99.26% Farebox Revenue and Pass Sales$ 75,847$ 73,4303.29%$503,680$427,96317.69% Average Fare per Bus Passenger$ 0.87$ 0.817.11%$1.03$0.8915.83% MONTHLYFiscal Year to Date PARATRANSIT This Month % Change % ChangeCurrentPrior Ridership Statistics Current Last Year Total ADA Passenger Trips1,3331,3111.68%7,0386,7743.90% Total Non ADA Passenger Trips3,0513,065-0.46%17,58717,651-0.36% Total Paratransit Passenger Trips4,3844,3760.18%24,62524,4250.82% Average Weekday Passenger Trips21918319.67% Average Saturday Passenger Trips383026.67% Average Sunday Passenger Trips8714.29% Operating Statistics - Paratransit Total Revenue Miles32,07735,193-8.85%184,285158,01916.62% Total Revenue Hours1,6752,042-17.97%9,5998,51212.77% Accidents Non Preventable010.00%02-100.00% Accidents Preventable20100.00%43100.00% Passenger Trips/Revenue Mile0.140.129.91%0.130.15-13.55% Passenger Trips/Revenue Hour2.622.1422.13%2.572.87-10.60% Operator Overtime 2.47%4.10%-39.76% WavePool Passengers29423226.72%1,5561,19430.32% Revenue Miles6,1744,30943.28%32,20524,29332.57% Revenue Hours1067737.66%58442936.13% Special Services Greyhound Ticket Revenue$1,822$1,29940.26%$12,006$10,76811.50% Amtrak Passengers On and Off24714570.34%1,06386023.60% Horizon$1,224N/AN/A$4,698N/AN/A CFPTA Agenda Packet 12/18/2014126 Cape Fear Public Transportation Authority Statement of Operating Position Date : 7/1/2014 - 11/30/2014 Budget Scenario : 2015 (1) (Board Adopted Original) ActualBudget Variance42%Annual GL account Operating revenues Farebox revenues 548,752 513,333 35,41944.54% 1,232,000 Passes 73,455 100,000 (26,545)30.61% 240,000 Contracted services Fixed Route 190,076 175,000 15,07645.26% 420,000 Para-Transit 271,777 287,708 (15,931)39.36% 690,500 Pledge to Capital (18,002) (10,417) (7,585)72.01% (25,000) Total: Operating revenues 1,066,058 1,065,625 43341.68% 2,557,500 Nonoperating revenues Subsidies Federal grants 983,494 1,398,081 (414,587)29.31% 3,355,394 State grants 188,284 356,229 (167,945)22.02% 854,950 Subsidy from primary government City of Wilmington 1,285,000 535,417 749,583100.00% 1,285,000 New Hanover County 275,000 114,583 160,417100.00% 275,000 Subsidy from other governments 113,875 38,281 75,594123.95% 91,875 Local Government Pledged to Capital (13,500) (8,458) (5,042)66.50% (20,300) Other Income 50,841 30,245 20,59670.04% 72,587 Total: Subsidies 2,882,994 2,464,378 418,61748.74% 5,914,506 Total: Revenues and Subsidies 3,949,052 3,530,003 419,05046.61% 8,472,006 Operating expenses Salaries and wages Fixed Route 1,268,536 1,319,475 50,93940.06% 3,166,740 Para-Transit 211,240 229,933 18,69338.28% 551,838 Taxes and benefits Taxes 108,143 119,783 11,64037.62% 287,479 Benefits 377,968 408,676 30,70838.54% 980,823 Fuels and lubricants 410,545 507,618 97,07333.70% 1,218,283 Maintenance 156,741 212,500 55,75930.73% 510,000 Tires 35,348 58,333 22,98525.25% 140,000 Communications & Utilities 41,705 55,292 13,58731.43% 132,700 Professional services 111,692 177,278 65,58626.25% 425,466 Other services 26,631 34,792 8,16131.89% 83,500 Insurance Liability & Property 166,341 111,658 (54,683)62.07% 267,979 Auto 169,968 123,780 (46,188)57.21% 297,071 Worker Comp 75,550 81,226 5,67638.76% 194,942 Office supplies and expenses 8,162 17,125 8,96319.86% 41,100 Marketing 5,013 19,292 14,27910.83% 46,300 Other expenses 43,703 53,244 9,54134.20% 127,785 Total: Operating expenses 3,217,286 3,530,003 312,71737.98% 8,472,006 Net Results 731,766 Fund Balance Contributions City of Wilmington 157,822 157,822 - 157,822 New Hanover County - 157,822 (157,822) 157,822 Total: Fund Balance Contributed 157,822 315,644 157,822 315,644 CFPTA Agenda Packet 12/18/2014127 Cape Fear Public Transportation Authority Operations Center Project Update December 2014 Construction Construction Contractor Clancy & Theys continues to finish small items to prepare for final inspe punch list items to be submitted by the project manager and the are taking longer than anticipated due to regulatory and easemen expected in mid-December. Following a final opinion from the mechanical engine basis of design for the radiant floor heating system, the Genera construct the heating system as designed and to provide a complet th While not available at the time of this report, a completion dat board meeting. A grand opening ceremony date and details will be discussed at the meeting. Compressed Natural Gas (CNG) Fueling Station Minor electrical work and testing remain before the project is c th incomplete with completion scheduled for the week of December 15, weather permitting. The electrical work th has been scheduled for the week of December 15. Equipment start up and testing will be scheduled following approval from NHC. Change Orders/Purchase Orders No December change orders or equipment. Budget As of this report, the project is $96,204under the adopted budget. This represents a contingency of 0.71% with over 97% of project funds allocated. Sales tax reporting by the General Contractor is currently under audit by the Authority due to omissions on previous sales tax reports. CFPTA Agenda Packet 12/18/2014128