Agenda Packet 01 28 16wave
Cape Fear Public Transportation Authority
A regularly scheduled meeting of the Cape Fear Public Transportation Authority will be held Thursday, January
28, 2016 at 12:00 pm in the Wave Transit Board Doom at Forden Station, 505 Cando St., Wilmington, NC
28405. An agenda for the meeting is presented below.
M E_ nNG AGENDA
1) Call to Order
2) Moment of silence
3) Redge of Allegiance
4) Public Comment Period
10 minutes
5) Consent agenda 05 minutes
1. Approval of amended minutes from the November 19, 2015 meeting (p. 3)
2. Approval of minutes from the December 17, 2015 meeting (p. 10)
3. Continuity of Operations Ran Update (p. 25)
4. Qjstem Security Ran Update (p. 41)
6) Fiscal Year 2014 -2015 Audit Fbport Presentation
• Mr. Lou Cannon, Partner, McGladrey
7) Committee Fbports
• Panning& Operations Committee, Mr. Andrew Koeppel, Chairman
• December 2015 Operating & Statistical reports (p. 65)
• Finance& Budget Committee, Mr. William Bryden, Chairman
• December 2015 Financial Statement (p. 68)
Facilities Committee, Mr. Steve Kelly, Chairman
Making Waves Foundation, M r. Bill Bryden Chairman
8) Staff report
• RDAP Program Update
• Legislative update
• CNG Bus Update
9) Contractor report
10) New business
11) Old business
15 minutes
20 minutes
15 minutes
10 minutes
F u O . =.
05 minutes
12) Executive Committee Fbport
• Pursuant to NCGS§ 143 - 318.11(3) this report may be presented in dosed session
13) Adjournment
The next regular meeting of Cape Fear Public Transportation Authority isscheduled for Thursday,
February 25, 2016 in the Forden Station Board Room located at 505 Cando Street, Wilmington, NC
28405.
CFPTA Agenda Packet 01/28/2016
wave
OONSBVTAGBVDA
The following itemsare attached for consideration. A brief explanation and recommendation
follows
1) Approval of amended minutesfrom the November 19, 2015 meeting (p. 3)
2) Approval of minutes from the December 17, 2015 meeting (p. 10)
3) Continuity of Operations Plan (COOP) update (p. 25)
Attached for consideration is F;bvision 002 to the Cape Fear Public Transportation Qjstem Continuity
of Operations Ran. The revisionsto the plan are asfollows:
• F;bferences most current Federal Emergency Management Agency circulars
• F;bmoval of referencesto old operations facilities on Division Drive and Castle Street
• Addition of Ops Center and information pertaining to the Ops Center
• F;bmoval of eliminated Safety and Training Manager position, and reassignment of dutiesto
other positions
The changeswill ensure continued conformity to Federal Emergency Management Agency best
practices. Adoption of the revised Continuity of Operations Ran is recommended.
4) System Security Plan (SSP) update (p. 41)
Attached for consideration is F;bvision 003 to the Cape Fear Public Transportation QJstem Security
Ran. The revisionsto the plan are asfollows:
• Update organization chart to reflect position changes
• F;bmoval of references to old operations fad litieson Division Drive and Castle Street
• Addition of Ops Center and information pertaining to the Ops Center
• F;bmoval of eliminated Safety and Training Manager position, and reassignment of dutiesto
other positions
• F;bassignment of some mechanic duties to Director of Panning and Development, and through
that position to facilities
The changeswill ensure continued compliance with state and federal Qjstem Security program
requirements. Adoption of the revised Qjstem Security Ran is recommended.
CFPTA Agenda Packet 01/28/2016
MEMBERS PRESENT
Mr. Jeff Petroff, Chairman
Mr. Kevin O'Grady, Vice - Chairman
Mr. Don Betz, Secretary
Mr. Jonathan Barfield
Mr. Bill Bryden
Mr. Fred Gainey
Mr. Steven Kelly
Mr. Andy Koeppel
Mr. Rick Richards
Ms. Anne K. Ryan
MEMBERS ABSENT
Mr. Beck Smith
STAFF PRESENT
Mr. Albert Eby, Executive Director
Ms. Megan Matheny, Director of Planning & Development
Mr. Joe Mininni, Director of Finance & Administration
Mr. Michael Williams, Director of Operations
Ms. Kathy Williams, Board & Customer Service Clerk
CONTRACT MANAGEMENT STAFF PRESENT
Ms. Noel Fox, Craige and Fox PLLC, Attorney
Mr. Curtis Garner, General Manager, First Transit
Mr. Bill Harned, Area Vice President, First Transit
Ms. Heather Mercer, Assistant General Manager, First Transit
GUESTS PRESENT
Ms. Deborah Andrews, Citizen
Mr. Terrance Dewberry, ATU Raleigh
Ms. Sabrina Dionne, disAbility Resource Center
Mr. Chris Dodson, NHC Senior Resource Center
Ms. Gloria Garton, disAbility Resource Center
Mr. Kwame' Johnson, First Transit Operator
Ms. Jackie McCullough, First Transit Operator
Mr. Gerald Marney, First Transit Operator
Ms. Avril Pinder, New Hanover County
Ms. Suraiya Rashid, WMPO
Ms. Yzone Riley, First Transit Operator
Ms. Patricia Robinson, First Transit Operator
Ms. Amber Smith, New Hanover County
Mr. Ralph Smith, Karz Transportation
CFPTA Agenda Packet 01/28/2016
CALL TO ORDER
Mr. Petroff called the meeting to order at 12:04 pm
The meeting began with a moment of silence followed by reciting the Pledge of Allegiance
PUBLIC COMMENT
• Mr. Petroff opened the public comment period
• Mr. Petroff indicated the public comment period is a time for the public to bring comments to the
board
• The comment period is not intended to serve as a dialogue between speakers and the Authority
• Ms. Andrews stated her son, Brandon Sawyers, works at Walmart in Porters Neck and has used
the Elderly and Disabled Transportation Assistance Program ( EDTAP) on daily basis for over ten
years
• Ms. Andrews stated her son received a letter in the mail from Wave Transit indicating that the
EDTAP services were being limited to two rides per month
• She stated her son received the letter one week prior to the reduction in service and he was
unable to read the letter due to his sight disability
• Ms. Andrews said her son used the van service every day and transportation to and from work
by means of a taxi is now costing him $52.00 per day
• Ms. Andrews asked the board to please find the money to keep the EDTAP program operating
• Mr. Dewberry ATU 1328 president and bus operator for Go Raleigh Transit thanked the board for
paying attention to the maintenance issues and concerns that were addressed at previous
meetings
• He said the maintenance issues are getting better and appreciates the purchase of new vehicles
• Ms. Riley said she is an operator for the UNCW Shuttle service and thanked the board for the for
the new shuttles
• Ms. Riley said several routes are not making their last connections to the Brunswick Connector
at 5:00 pm causing people to be left downtown
• Ms. Riley said that two buses are needed on Route 201 Carolina Beach Rd. because it misses
the last Brunswick Connector at 5:00 pm
• She also said that Route 104 Northeast is not making its connection at Forden Station and
customers are forced to wait an additional hour to make their connection
• Ms. Garton stated three of her employees rely on Wave Transit for transportation and for the
past two months she has noticed some issues
• Ms. Garton requested that the board speak to riders that use the service daily regarding their
concerns
• She said the limited hours of operation is one barrier to seeking and maintaining employment for
her clients
• She said perhaps the board can look into extending public transportation service hours beyond
9:00 pm
• Ms. Garton stated that she hopes the board will take a look at the EDTAP funding in order to find
solutions for those who depend on EDTAP services
• Mr. Barfield stated he received notification of the program change when he was contacted by a
community member
• Mr. Barfield indicated that as an elected official, he receives phone calls from members of the
community when issues arise
• Mr. Barfield stated he was caught off guard when he was contacted as he received no
notification as to these program changes
• He stated that communication is an issue and program changes should not be made without
proper communication and notification to board members
• Mr. Barfield invited County staff to the meeting for further elaboration on EDTAP transportation
services and the changes made to these services
CFPTA Agenda Packet 01/28/2016
• Mr. Barfield recognized Ms. Pinder from New Hanover County to provide insight on how EDTAP
transportation services and grant funding impacts clients from the New Hanover County Senior
Resource Center
• Ms. Pinder said the Senior Resource Center has a program that provides transportation on a
daily basis for seniors and disabled adults in the community
• She stated transportation services for these individuals were funded through EDTAP and 5310
program
• Ms. Pinder stated in addition to the 270 seniors served, there are roughly 100 individuals on the
waiting list for transportation services
• Ms. Pinder stated that prior to this year, the Senior Resource Center received $180,000 in 5310
grant funding from NCDOT to fund their transportation needs
• She said that due to changes at the federal level, 5310 funding is allocated directly to the
Authority
• Ms. Pinder said the funding the County received from NCDOT to fund a portion of their
transportation needs is gone leaving the Senior Resource Center with a $100,000 deficit
• Ms. Pinder said that historically, the County split the EDTAP funding with the Authority at a rate
of 60% allocated to the County and 40% allocated to Wave Transit
• The funding split was not part of any formal agreement between the Authority and the County
• Ms. Pinder stated in an effort to cover the deficit from the reduction in 5310 grant funding, the
County split the EDTAP funding with 75% allocated to the County and 25% allocated to Wave
Transit
• Ms. Pinder stated the County has requested to use Employment (EMPL) funds to cover the
remaining deficit in transportation funding experienced by the Senior Resource Center
• Mr. Eby provided a brief background on the Rural Operating Assistance Program (ROAP) and
how Federal & State money is allocated through these funding programs
• He said the ROAP grant, which supports EDTAP and EMPL, is allocated by NCDOT to New
Hanover County
• Mr. O'Grady stated the issue is evident; however, no one is offering a solution
• He asked "where is the funding coming from to support these trips; how are we going to pay for
them"
• Ms. Pinder stated the County receives the money from the State and gives it to the Authority
• She further elaborated that the money flows to the Authority via the County and under the EMPL
Program, voucher requests are sent to the Authority by the County
• Ms. Pinder stated the revisions to the EMPL Program will only provide transportation to current
EDTAP customers who utilize transportation services for work purposes
• She stated this revision does not solve the problem for seniors and EDTAP customers utilizing
transportation services for purposes unrelated to work as the EMPL Program is strictly for
employment related transportation
• Ms. Pinder stated the County's request to use EMPL funds to cover the remaining deficit in
transportation funding experienced by the Senior Resource Center addresses seniors
• Mr. O'Grady stated that "when making decisions about money, someone better figure out what
the implications are going to be as these decisions have a direct impact on the public"
• Mr. Eby provided further insight regarding the deficit in funding experienced by the Senior
Resource Center
• He stated the 5310 Program changed when the funds were distributed under new legislation,
Moving Ahead for Progress in the 21St Century (MAP -21)
• Mr. Eby said that transportation services provided by the county under the former 5310 Program
were ineligible under MAP -21
• He said that under the new 5310 Program, the Authority is the designated recipient of the funds
• The decision to designate the Authority for the funding was made by the Wilmington Urban Area
Metropolitan Planning Organization Transportation Advisory Committee
CFPTA Agenda Packet 01/28/2016
• Mr. Eby stated that congressional emphasis of the 5310 Program is mobility management; a
portion of the grant funding would go to support a Mobility Manager with the remaining funding
used to support transportation services defined in the required and adopted FTA approved
Program Management Plan (PMP)
• He said that a new requirement for 5310 funding included the Program Management Plan (PMP)
• The PMP was drafted by the Authority and over 100 agencies in the area, including NHC, were
asked to comment on the draft PMP
• The only comments received regarding the draft PMP were from the WMPO
• The comments were included as part of the final PMP adopted by the Authority and approved by
Federal Transit
• Ms. Pinder asked if Wave Transit could allocate $36,000 of funding received under the 5310
Program to the Senior Resource Center to help cover this year's deficit in transportation funding
• Mr. Eby stated that the request was not part of the PMP or the FTA approved grant for 5310
funding
• He also stated that the Authority has not adopted a policy regarding suballocation of 5310
funding
• Additionally, the Authority has not been given details regarding the type of service requested by
NHC and are not in a position to determine if it is compliant with FTA 5310 requirements
• Mr. O'Grady stated "the decision to switch the ROAP funding is a policy decision and it should
not have just been switched"
• Mr. O'Grady advised the Authority and the County to "get is solved"
• Mr. O'Grady stated that based upon the conversation, the County is going to advance the money
to the EMLP Program to restore transportation for those individuals going to work
• Mr. O'Grady stated transportation services for individuals using EDTAP for work purposes will be
restored through the EMPL Program and the Authority will send the County a "bill" for the
transportation services provided
• Ms. Pinder stated that eligibility for these individuals will have to go through the County
• Mr. Barfield stated individuals cannot be transferred to the EMPL Program without going through
the eligibility process
• He confirmed that the qualification process is handled by the County
• Mr. Barfield stated the need to make sure that all Federal and State monies are used and not
returned
• Mr. O'Grady stated "just get it done"
• He stated roughly half of the current EDTAP customers are utilizing transportation for work
purposes
• He stated of course these individuals will have to go through the eligibility process; however,
once they are qualified transportation services can be reinstated
• Mr. O'Grady stated the Authority has no money so we "cannot just switch funding around"
• He stated that if the program or program funding goes away then services go away
• Mr. Bryden inquired as to whether or not the qualifications in place through Wave Transit would
automatically transfer to the County's EMPL Program
• Mr. Mininni replied "no" and stated qualifications under the EDTAP and EMPL Program differ; the
responsibility for determining qualification and eligibility for the EMPL Program falls under the
County
• Mr. Petroff concluded the public comment period by stating "this is why Ms. Pinder will get with
staff to work this out"
• Hearing no further comments, Mr. Petroff closed the public comment period
CONSENT AGENDA
• Mr. Petroff presented the November 2015 consent agenda for approval
• Mr. Koeppel requested to open Item 2 for discussion
CFPTA Agenda Packet 01/28/2016
• Mr. Betz made a motion to accept Item 1 of the consent agenda
• Mr. Bryden seconded the motion and the motion carried
• Mr. Koeppel recognized Item 2, the Wilmington Multimodal Transportation Center, as a
significant milestone for the Authority as well as the City of Wilmington
• Mr. Koeppel said that Wave Transit customers will have a facility downtown similar to Forden
Station to wait for the bus
• He thanked everyone who has played a role in the development of the Wilmington Multimodal
Center
• Mr. Koeppel made a motion to accept Item 2 of the November 2015 consent agenda
• Mr. Betz seconded the motion and the motion carried
2016 JOB ACCESS REVERSE COMMUTE PROGRAM PUBLIC HEARING & RESOLUTION
• Mr. Petroff opened the FY2016 5316 Job Access Reverse Commute (JARC) Program public
hearing
• Mr. Petroff recognized Ms. Matheny to provide further detail regarding the 5316 JARC Program
• Ms. Matheny stated the program provides funding to support the operation of Route 108 Market
St.
• She revealed the total annual cost to operate Route108 Market St. is $368,000
• Ms. Matheny stated the 5316 JARC grant would cover $184,000, or 50 %, of the operating cost
for the route with a local match requirement of $184,000, or 50 %, for FY2016
• She stated that objective of the JARC Program is to provide transportation services to and from
employment centers and employment related activities
• Ms. Matheny stated Route 108 Market St. provides service along of Wilmington's major
employment corridors while connecting Wave Transit's two main transfer stations, Forden
Station and the Downtown Station
• Hearing no comments from the public, Mr. Petroff closed the public comment period
• Mr. Koeppel made a motion to accept the FY2016 5316 Job Access Reverse Commute (JARC)
Program Resolution
• Mr. Betz seconded the motion and the motion carried
EXECUTIVE COMMITTEE
• Mr. Petroff stated the committee did not meet
• Mr. Petroff stated that the board is in need of volunteers for an ad hoc committee to oversee the
development of the Request for Proposals (RFP) for service management of the fixed route
system
• Mr. Barfield. Mr. Richards, and Mr. Bryden volunteered to serve on the ad hoc committee
PLANNING AND OPERATIONS COMMITTEE
• Mr. Petroff recognized Mr. Koeppel to give the committee report
• Mr. Koeppel indicated there was a 15% decrease in ridership during October 2015 as compared
to October 2014
• Mr. Eby stated that conversations with other transit agencies in North Carolina reveal a negative
trend in ridership across the State
• The consensus is that a prolonged period of low gas prices is allowing former transit dependent
passengers an opportunity to own automobiles
• Mr. Koeppel said $50,000 in advertising revenue should be realized by the close of the fiscal
year
• Mr. Koeppel stated the appropriate permits from City of Wilmington and NCDOT have been
secured and staff is moving forward with the next phase of the bus stop amenities project
• Mr. Koeppel indicated each bus stop location was assigned a number and the physical numbers
will be installed at each location in January 2016
CFPTA Agenda Packet 01/28/2016
FINANCE & BUDGET COMMITTEE
• Mr. Petroff recognized Mr. Bryden to give the committee report
• Mr. Bryden stated that income from fixed route service is down slightly
• He said a portion of the decrease can be attributed to invoice credits provided to UNCW for
service hours provided by a vanpool van
• Mr. Bryden said income from Paratransit service has increased significantly
• Mr. Bryden stated the board must be prepared to make some difficult decisions as how best to
fund vehicle replacements in future budget preparations if a long term surface transportation bill
is not authorized by Congress
• He stated the challenge will be finding a balance between the cost of operating a system and
allocating FTA funding to rolling stock replacement
FACILITIES COMMITTEE
• Mr. Petroff stated the committee did not meet
STAFF REPORT
• Mr. Petroff recognized Mr. Eby to give the committee report
• Mr. Eby gave a brief legislative update and presentation
• He said replacing the fleet is a challenge detailing the current age of the fleet
• Mr. Eby stated that vehicles at the end of their useful life are safe to operate; however, they are
less reliable and more expensive to maintain
• Mr. Eby said the Authority receives about $250,000 a year in 5339 Bus and Bus Facilities grant
funding which is not enough to purchase a single bus
• He said the Authority has been able to purchase shuttles and Paratransit vehicles utilizing 5339
Bus and Bus Facilities grant funding
• He said the Authority would need to bank two years of 5339 funds in order to purchase a single
heavy duty fixed route bus
• Mr. Eby said the STRR Act, recently passed by the US House of Representatives, would provide
an opportunity to purchase new vehicles without impacting current service levels
• The House bill was sent to a conference committee with the senate for final deliberation
• He stated that he was preparing letters to the congressional delegation asking them to support
the House version of the bill
• Mr. Eby said that the current route structure is designed and funded for the transit dependent
and not choice riders
• He said the goal is to provide reliable public transportation to as many residents as possible with
the amount of funding provided
• Mr. Eby requested that should board members have a chance to speak with their Congressmen
or elected officials to let them know the funding challenges faced by the Authority
• Mr. Petroff asked if Paratransit maintenance has been turned over to First Transit
• Mr. Eby said the transition is occurring in stages and First Transit has taken over preventive
maintenance of the Paratransit fleet
CONTRACT REPORT
• Mr. Petroff recognized Mr. Harned to give the contractor report
• Mr. Harned said that First Transit has assumed preventive maintenance of Paratransit vehicles
• Mr. Harned agreed with the union that things are beginning to look a lot better
• Mr. Harned introduced Mr. Curtis Garner as resident Contractor General Manager
• He said that over the past five days, 100% of compliant service was provided
CFPTA Agenda Packet 01/28/2016
• He said a change in staffing and hours in the maintenance department was implemented and Mr.
Garner has provided continued oversight of the operation
• Mr. Harned revealed that needed parts are arriving on time and $6,000 in credits for returned
parts has been received
• Mr. Harned stated all fixed route buses are back from vendors and all major engines repairs
have been completed
• He said state inspections on all of the buses have been performed and as of October 1, 2015,
First Transit has provided 99% of service
NEW BUSINESS
• Mr. Eby stated that the newest Short Range Transit Plan (SRTP) will kick off early next year
• Mr. Eby stated all the requirements to purchase vehicles from Durham have been met and the
vehicles should be on site prior to the close of 2015
• Mr. Eby thanked Mr. O'Grady and Wilmington City Council for authorizing $225,880 for two new
LTVs and $20,000 for the Durham LTV's
• Mr. Eby presented a purchase order in the amount of $225,880 for the purchase of two new
LTV's from National Bus Sales
• Mr. O'Grady made a motion to approve the purchase order in the amount of $225,880 for the
purchase of two new LTV's from National Bus Sales
• Mr. Betz seconded the motion and the motion carried
• Mr. Barfield said he believes that the image of Wave Transit has been tarnished and some PR
work needs to be conducted to change the perception
• Mr. Eby said a Public Relations Plan can be included in the SRTP and a heavy emphasis will be
placed on soliciting feedback from customers and community members
• Mr. Bryden stated the Making Waves Foundation received a $5,000 grant from the Landfall
Foundation and recognized Ms. Matheny for writing the grant
• Mr. Barfield recognized Ms. Pinder and Ms. Fox for their achievements in the Wilma awards
ADJOURN
• Mr. Betz made a motion to adjourn the November 2015 board meeting
• Mr. Barfield seconded the motion and the motion carried
SCHEDULING OF NEXT MEETING
• The board meeting is scheduled for December 17, 2015 at 12:00 pm in the Forden Station
Conference Room
Respectfully Submitted,
Albert Eby
Executive Director
/kw /m m
CFPTA Agenda Packet 01/28/2016
MEMBERS PRESENT
Mr. Jeff Petroff, Chairman
Mr. Kevin O'Grady, Vice Chairman
Mr. Don Betz, Secretary
Mr. Jonathan Barfield
Mr. Bill Bryden
Mr. Steven Kelly
Mr. Andy Koeppel
Mr. Rick Richards
Ms. Anne K. Ryan
Mr. Beck Smith
MEMBERS ABSENT
Mr. Fred Gainey
STAFF PRESENT
Mr. Albert Eby, Executive Director
Ms. Megan Matheny, Director of Planning & Development
Mr. Joe Mininni, Director of Finance & Administration
Mr. Michael Williams, Director of Operations
Ms. Mary Crawford, Accounting Clerk
Ms. Vanessa Lacer, Mobility Manager
Mr. Clifford Rode, Paratransit Manager
CONTRACT MANAGEMENT STAFF PRESENT
Ms. Noel Fox, Craige and Fox PLLC, Attorney
Mr. Curtis Garner, General Manager, First Transit
Mr. Bill Harned, Area Vice President, First Transit
Ms. Heather Mercer, Assistant General Manager, First Transit
GUESTS PRESENT
Ms. Deborah Andrews, Citizen
Ms. Sabrina Dionne, disAbility Resource Center
Mr. Chris Dodson, NHC Senior Resource Center
Ms. Jackie McCullough, First Transit Operator
Ms. Avril Pinder, New Hanover County
Ms. Suraiya Rashid, WMPO
Ms. Yzone Riley, First Transit Operator
Mr. Brandon R. Sawyer, Citizen
Ms. Amber Smith, NHC Senior Resource Center
CALL TO ORDER
• Mr. Petroff called the meeting to order at 12:02 pm
• The board meeting began with a moment of silence followed by reciting the Pledge of Allegiance
CFPTA Agenda Packet 01/28/2016 10
NEW EMPLOYEE RECOGNITION
• Mr. Petroff recognized Mr. Eby to introduce new Authority employees
• Mr. Eby introduced Mobility Manger, Ms. Vanessa Lacer
• Ms. Lacer provided a brief biography and update on the items she has been working on since
joining the Authority in December 2015
• Mr. Eby introduced new Paratransit Manager, Mr. Clifford Rode
• Mr. Rode gave a brief introduction and indicated he is looking forward to serving the Authority in
the capacity of Paratransit Manager
PUBLIC COMMENT
• Mr. Petroff opened the public comment period
• Mr. Petroff indicated the public comment period is a time for the public to bring comments to the
board
• The comment period is not intended to serve as a dialogue between speakers and the Authority
• Ms. Andrews stated she did not want to be in front of the board the month as she was under the
impression transportation options for her son, Mr. Sawyer, would be offered through the
employment program
• Ms. Andrews said Ms. Pinder stated that NHC DSS that was handling work related transportation
• She stated NHC DSS told her the only transportation options available for her son through the
employment program was a 31 day bus pass on the fixed route bus for one month
• Ms. Andrews said her son is unable to use the fixed route bus system and this option would not
help him get to his place of employment in Porter's Neck which is not served by a fixed route
• She stated she spoke with Mr. Barfield and he agreed to look into the situation
• Ms. Andrews revealed a month has passed and she has received no feedback or answers
regarding her sons transportation
• Ms. Andrews said her son, Mr. Sawyer, has been receiving rides from volunteers since rides
under the EDTAP program were limited; however, he is in need of a long term solution to his
transportation needs
• Ms. Andrews said she hopes answers will be provided with the ROAP presentation
• Hearing no further comments, Mr. Petroff closed the public comment period
CONSENT AGENDA
• Mr. Petroff presented the December 2015 consent agenda for approval
• Mr. Petroff and Mr. O'Grady requested to pull Item 1, Approval of Minutes from the November
19, 2015 meeting, for discussion
• Mr. Betz made a motion to accept Items 2 and 3 of the consent agenda
• Mr. Koeppel seconded the motion and the motion carried
• Mr. Petroff noted that under Item 1, Mr. Richards volunteered for the Management RFP Ad hoc
Committee
• Mr. O'Grady stated he is unable to vote for the November minutes as presented because they do
not accurately reflect his comments regarding employment transportation addressed at the
meeting for those that were limited EDTAP trips, specifically Mr. Sawyer
• Mr. O'Grady said there was a lengthy discussion about the item that took place at the meeting
• He felt it was very clear that the staff of the Authority and NHC were directed to speak to each
other to resolve Mr. Sawyer's transportation issue
• He said he did not care who was supposed to make the first call but somebody should have
spoken to the other and one month was sufficient time to work out a resolution
• Mr. Bryden asked Mr. O'Grady to identify the particular section in the minutes he is referring to
• Mr. O'Grady stated the end of the Public Comment Period does not reflect the fact that direction
was given
CFPTA Agenda Packet 01/28/2016 11
• He said the November minutes reflect the elaboration of the EDTAP and EMPL programs, but it
is not indicated that staff from the County and staff from the Authority were specifically instructed
to resolve the issue
• Mr. O'Grady said he was very surprised when Mr. Barfield came to him and revealed that the
issue was not resolved
• Mr. O'Grady stated he wants the November minutes to reflect that direction was given to both
NHC and Authority staff to resolve to the issue
• He said he wants to ensure that minutes from this meeting clearly reflect that this was raised
again
• He requested that the minutes of the November 17, 2015 meeting be amended and to more
accurately reflect the discussion of the item and direction of the board
• Consent agenda item one, approval of the minutes from the November 17, 2015 meeting, was
not considered
• The minutes will be amended as requested and presented for approval at the January 28, 2016
meeting
• Mr. O'Grady made a motion directing Authority staff to speak to NHC staff for the purpose of
coming to a resolution to address Mr. Sawyer's transportation issue
• Mr. O'Grady stated he hopes that Mr. Barfield would also agree to direct County staff in the
same direction
• Mr. Betz seconded the motion and Mr. Petroff opened the motion for discussion
• Mr. Bryden stated that he did not understand the value for the two staffs to talk to each other if
there is no funding available to implement any changes that are agreed upon
• Mr. Barfield stated the reality is funding is available
• He stated direction had been given to County staff
• Mr. Barfield stated County staff reached out to Authority staff on a number of occasions and a
response was finally provided via email just yesterday
• The response he received indicated that this issue will be brought before the board for further
discussion during the Authority board meeting
• Mr. Barfield agreed with Mr. O'Grady stating the expectations of staff were very clear at the
conclusion of the November meeting
• Mr. Barfield revealed that when he initially called Mr. Mininni his expectation was that staff would
address the concern and instead he was felt as though he was met with a "fluff' answer
• Mr. Barfield said his objective is not to point fingers; he just wants to the issue resolved
• He said there is too much bureaucracy on too many levels
• He said Ms. Andrews "should not be here today "; if resources are available for her son, then she
should have been made aware of them by means of a phone call
• Mr. Barfield said he is Chairman of the DSS board and knows there is always a way to provide
needed services if people just come together to work things out
• Mr. Bryden opposed the motion
• He said the discussion seems to be centered around a single person and not the EDTAP
Program as a whole
• Mr. Bryden stated we must focus on the overall program, how well it is funded or not funded and
what can be done with respect to services based on the current funding provided
• Mr. Bryden provided a recap stating the EDTAP Program is funded by the State, the County
receives the funds directly from the State and in turn, the County suballocates a portion of the
funding the Authority to support the EDTAP Program
• He stated the board cannot authorize a program to operate beyond its budget
• The EDTAP Program has an established budget and there seems to be a thought that the
Authority will be able to provide services to one individual beyond programmed funding
• Mr. Petroff stated staff will be giving a formal presentation on the ROAP Program
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• He stated he believes the presentation will answer several questions and provide an opportunity
for the board to act on a policy
• Mr. Bryden asked if additional funds have been provided to the Authority for this program
• Mr. O'Grady said if someone would have made the call, then they could have found out
• Mr. O'Grady stated this is why the board needed both staffs to speak to each other
• He said this is an embarrassment for both organizations and the gentleman still needs
transportation
• Mr. O'Grady stated the Authority is the transportation provider and the County has the money so
"why didn't it happen ?"
• Mr. Bryden restated that he has a problem talking about just one individual when this program is
supposed to cover any resident in New Hanover County
• Mr. O'Grady said Mr. Sawyer is a resident of New Hanover County, is entitled to some coverage
and the money is available
• Mr. Bryden responded "is it ?" in relation to available monies
• Ms. Pinder said the money in which the conversation is centered around is the EMPL, or
employment transportation
• Mr. O'Grady stated "the money is available, transportation services are available, so what will it
take for both organizations to speak to each other and get it done ?"
• Mr. Koeppel reminded the board that there is a motion and a second on the floor
• He encouraged the board to listen to the presentation and proceed with any subsequent motion
that might be necessary after the program is explained
• Mr. Petroff stated the current motion on the floor must be addressed in order to proceed
• Mr. O'Grady restated his motion to directing Authority staff to speak to County staff for the
purpose of coming to a resolution to address Mr. Sawyer's transportation issue
• Mr. Betz restated his second
• Mr. Petroff called the question and the motion carried
• Mr. O'Grady made a motion for the board to direct Authority staff to make all contact necessary
with New Hanover County Administration to get the funding necessary to provide transportation
to Mr. Sawyer
• Mr. Koeppel suggested the motion be opened for discussion before it is seconded
• Ms. Fox weighed in on the motion and stated Mr. Bryden has a valid legal point about directing
staff to assist one particular individual
• She respectfully requested that the motion be removed from the floor until the legality of the
pending motion be researched
• Mr. O'Grady stated that the issue falls within the scope of the program
• Mr. O'Grady stated he wants Mr. Sawyer to get the transportation he needs
• Mr. Smith asked if the motion could be tabled for discussion and consideration after the
presentation is completed as it may impact the motion
• Mr. Barfield stated the issue is not just about Mr. Sawyer but about all others in the community in
the same situation that could benefit from the revised EMPL Program
• He said the $50,000 in funding returned to the State last year could have been used to benefit
several other individuals if conversations had taken place prior to the close of the year
• Mr. Petroff stated Mr. O'Grady clarified his motion and the motion was seconded by Mr. Koeppel
• Mr. Koeppel agreed with Mr. Smith's statements and asked Mr. O'Grady if he would be willing to
defer any action on his motion
• Mr. O'Grady agreed to defer his motion until after the ROAP presentation
• Mr. Petroff closed the consent agenda item
RURAL OPERATING ASSISTANCE PROGRAM (ROAP) PRESENTATION
• Mr. Petroff recognized Mr. Eby to give the ROAP presentation
CFPTA Agenda Packet 01/28/2016 13
• Mr. Eby stated staff's understanding of the direction from the board during the November
meeting was to continue to limit the number of EDTAP rides under the Rural Operating
Assistance Program (ROAP) to two per client, per month due to limited funding within the
program
• He indicated it was staff's understanding that shifting funds was a policy decision that should be
made by the board and after the November board meeting Authority staff worked to generate a
presentation to explain the ROAP Program in detail to highlight the challenges that both Wave
Transit and the County face in administering the program
• Mr. Eby stated that the current ROAP program is a hybrid program between the Authority and
the County; under the program, Wave Transit determines eligibility requirements and provides
elderly and disabled services under EDTAP
• Currently NHC DSS determines eligibility requirements and purchases bus passes from Wave
Transit for the EMPL program
• He said that Route 207 Castle Hayne which services the Northern part of the County, the VA
Clinic and CFCC North Campus, is partially funded by the ROAP Program Rural General Public
(RGP) Program and significant decreases to funding under RGP have occurred over the past
several years
• As an urban county, RGP funding is expected to be eliminated in the very near future
• Mr. Eby stated there is no formal agreement as to how the ROAP funds are distributed between
the County, Authority and the Senior Resource Center
• He said the County is the designated recipient of the ROAP funds administered by the State
through a combination of federal and state Elderly and Disabled Transportation Programs
• As direct recipient, NHC receives the funding and allocates funding from the program based on
their needs
• The Authority has no input in the allocation of funding from NHC
• Mr. Betz asked Mr. Eby who worked on the presentation
• Mr. Eby stated the presentation was prepared by the Authority
• The Authority has not formally approached the County until the board can weigh in on a policy
• Mr. Betz stated "this is where the failure came in"
• Mr. Eby said staff was waiting for direction from the board regarding policy for the ROAP
program
• Mr. Betz replied "the Authority did not see a consensus from the board 30 days ago"
• Mr. Betz stated from his understanding during the November meeting, DSS was going to
evaluate Mr. Sawyer's application to fit the employment portion
• Mr. Betz asked Mr. Eby if he saw a consensus from the board during the November meeting
• Mr. Eby reiterated that from his understanding, the Authority was directed not to make policy
decisions without board approval
• Mr. Bryden asked "how can you use funding that is just not there"
• He said funding allocations are determined and distributed by the County and they tell the
Authority how much of the funding we will receive
• Mr. O'Grady said a formal agreement outlining the funding allocation is needed
• Mr. Eby recognized Mr. Williams to give the ROAP presentation which provides an overview of
the current situation and available funding
• Mr. Williams gave a description on how the ROAP funds are acquired and distributed
• He said that historically the County has kept about 19% of the ROAP funding with the remainder
allocated to Wave Transit
• The funds are allocated from the state with apportionments for Elderly and Disabled
Transportation Assistance Program ( EDTAP), Employment (EMPL) Transportation and Rural
General Public (RGP)
• A limited amount of the funding can be reallocated by the Authority between the three programs
with approval from NCDOT
CFPTA Agenda Packet 01/28/2016 14
• Mr. Williams stated that Elderly and Disabled Transportation Assistant Program ( EDTAP) offers
Paratransit transportation to eligible recipients based on age and disability with services
restricted to areas of the County where other public transportation options are unavailable
• He said that eligibility under EDTAP is managed directly by Wave Transit and the projected rides
for FY 2016 is 1,550
• Mr. Betz asked how much EDTAP money is available right now
• Mr. Williams said there is enough money to provide 1,550 rides for this fiscal year
• Mr. Bryden stated there is no money to increase services under this program
• Mr. Williams said EMPL funds, which are utilized to support the New Hanover County Gets To
Work Program, currently provides 31 -day fixed -route bus passes to eligible clients; however,
eligibility is managed by NHC DSS and it is projected this program will provide about 62 fixed -
route bus passes in FY16
• The EMPL policy set by NHC DSS restricts funding only for bus passes and is limited to one 30
day period per client
• Mr. Williams said that funds from the EMPL allocation can be moved to RGP or EDTAP with
concurrence from NCDOT
• Mr. Williams said that funding under RGP is used to support Route 207 North which provides
vital access to the major dialysis center, the VA Clinic, and also connects Cape Fear Community
College's Downtown and North Campuses
• He said the route allows access for both fixed route bus and DART services
• This program is projected to provide 35,000 fixed route rides and about 4,800 DART rides in FY
2016
• Mr. Williams said the total ROAP allocation from the State has decreased over the past several
years
• To offset the decrease, less ROAP money was allocated by NHC to the Authority
• He stated the revised allocations led to a reduction in revenue which has had a dramatic impact
on the services that can be provided under ROAP
• He said the Authority budgeted for $240,000 in revenues from ROAP, split between the three
programs, but only received $114,000 in ROAP funds allocated by the State and NHC
• The NCDOT ROAP allocation is not determined until the NCGA adopts the state budget and FY
2016 ROAP allocations were advertised by NCDOT in October 2016, well into the Authority's
fiscal year
• Mr. Barfield asked if the funds can be used for single transportation to a particular location
• Mr. Williams said yes but the County has leeway as to how the EMPL funds are allocated and
they can be shifted to either of the other two programs
• Mr. Betz asked if Wave Transit has the $114,000 in ROAP funding and if there is $26,785 left
under EDTAP Program within the EDTAP
• Mr. Williams said majority of the $26,785 in EDTAP funding has already been spent
• Mr. Betz inquired about the EMPL allocation
• Mr. Williams stated very little of EMLP funds have been spent to date
• Mr. Eby stated it is important to note that EMPL funds are only being allocated by the County for
fixed -route bus passes
• Mr. Eby said EMPL funds could be used for Paratransit services but not under the current
program structure as developed by the NHC DSS
• Mr. Williams stated under the EMPL Program, the County determines eligibility and purchases
bus passes for clients
• Mr. Bryden stressed to the board that Wave Transit budgeted $204,000 for ROAP based on
previous allocations; however, NHC only allocated $114,000 for FY16
• He said that the Authority is unable to move the money unless authorized by the County and
NCDOT
• Mr. Mininni stated the actual cash has been transferred to the Authority by the County
CFPTA Agenda Packet 01/28/2016 15
• He said the only way the Authority can use the EMPL funds is if the County authorizes Wave
Transit to provide transportation for an individual
• Mr. Betz asked "as of today, how much money is left"
• Mr. Mininni said at this moment, roughly $48,000 has been distributed to Wave Transit for ROAP
programs in which the Authority provides
• Mr. Bryden asked if the County has told Wave Transit they can move that money from the EMPL
program
• Mr. Mininni said that once the funds have been transferred to Wave Transit, Wave Transit can
move the funds but not without permission from the County
• Mr. Williams said the current discussion is centered around moving EMPL funds to another
program and determining who is eligible to ride under the EMPL Program
• He said EMPL funds can be moved to either of the other two programs but reiterated the County
determines who is eligible to ride under the employment program
• Mr. O'Grady asked, "if a person comes to Wave and needs a ride to work, what has to be done
to get the money so they can get a ride"
• Mr. Williams stated authorization is needed from the County to use the money under the EMPL
Program
• Mr. O'Grady said that all that had to be done was for someone to pick up the phone and call Ms.
Pinder and ask "can we get some money transferred and here is the person coming in to apply"
• Mr. O'Grady asked how staff was going to help this individual and every other passenger in this
same situation
• Mr. Eby said in order to make it through the rest of the fiscal year and remain compliant with the
State Management Plan, there has to be enough money to for the entire fiscal year under the
ROAP program regardless if they move funding or not
• He reiterated that the issue is not about a single individual
• He said if the EDTAP program is reopened and Wave provided unlimited rides, there would not
be enough of the $114,000 to complete FY 2016, regardless of how the funding was split, to
transport everyone who wants Elderly and Disabled Transportation Program assistance outside
of the 5307 DART program
• Mr. Barfield stated if the resources are available and if we know there is a demand from the
community, then why are we going to sit back and give $50,000 back to the State instead of
serving the needs of our community
• He said he does not want to see one dollar go back to the State that could have been used to
help citizens in the community
• Mr. Eby stated the resources are not there as majority of the allocated EDTAP funding has
already been utilized for services
• Mr. Eby said that if the EDTAP program continued to offer unlimited rides for the remainder of
the year, there would not be enough funds in the ROAP program to provide all the transportation
that is requested
• Mr. Petroff stated this issue is more complex than "the money is there and they are just not using
it"
• Mr. Smith inquired about the limitations for individuals currently on the EDTAP Program
• Mr. Eby stated that all individuals currently on the EDTAP Program are limited to two rides per
month
• Mr. Bryden stated the limitation was implemented due to a lack of funding
• Mr. Williams said staff's short term recommendation for the FY16 allocation is based on the
current ROAP funding available and the Authority's obligation to operate in a fiscally responsible
manner
• He said service restrictions implemented under the EDTAP Program will ensure the Authority is
operating within the funding available
CFPTA Agenda Packet 01/28/2016 16
• Mr. Williams stated the EMPL funds needed to cover projected usage under the New Hanover
County Gets to Work Program for the fiscal year is estimated to be $5,000
• He stated it is staff's proposal that $5,000 in funding remain in the EMPL program to cover
current transportation needs of the New Hanover County Gets to Work Program and the
remaining balance under the EMPL bucket be transferred to the RGP bucket to cover the deficit
• Mr. Williams stated RGP funds are used to support the operation of Route 207 and a budget
shortfall in this area would adversely impact a significant number of passengers
• Mr. Williams stated the remaining deficit, should EMPL funds be transferred to the RGP
program, would need to be absorbed by the Authority's operating budget
• Mr. Petroff asked if the reduction in EDTAP services for current customers would remain under
the proposal presented by staff
• Mr. Williams replied yes and stated that the proposal presented by staff is merely a
recommendation and that a policy decision would be required by the board
• Mr. Barfield said his goal is to provide service to individuals and find a solution for EDTAP
customers, such as Mr. Sawyer, who are faced with a reduction in services
• He said the last thing he wants to see is $50,000 returned to the State despite an expressed
need for services
• Mr. Williams stated at the end of the day, there is not enough ROAP funding to fulfill all
transportation needs and a deficit in funding for Route 207 under the RGP program could result
in a reduction in service
• Mr. Williams stated a significantly higher number of individuals would be impacted should from a
reduction in services for Route 207
• He said if the decision is made to utilize the remaining EMPL funding for EDTAP services rather
than to support the operation of Route 207, the same conversation would occur but with different
customers
• Mr. Eby stated there is not enough money in the ROAP program and the budget was based
upon the funding level was received from the State last fiscal year
• Mr. Smith inquired as to the number of individuals, similar to Mr. Sawyer, who are utilizing the
service for employment and asked how much their trips would cost
• Mr. Eby stated the program prohibits prioritizing individuals for transportation requests
• Mr. Petroff asked if staff was covering an operational shortfall for Route 207
• Mr. Eby said that RGP eligibility is determined by the State and that approximately 2% of New
Hanover County is considered rural
• He said that the area served along Blue Clay Rd. comprises the majority of the rural area in the
county
• Mr. Eby said the Authority is prohibited from using RGP funds to match federal funds so local
funding would be required to match federal funding to support the rural portion of the County
serviced by Route 207
• Mr. Eby said the estimate is that the EDTAP cost for the entire year is $26,785 based on the two
ride restriction
• Mr. Kelly asked if all the EDTAP passengers did not utilize their two rides per month if a surplus
would result at the end of the year
• Mr. Eby said it is possible but any surplus could be reprogrammed to the RGP shortfall
• Mr. Eby said the Authority must ensure that at the end of the year there is enough funding to
operate the program
• He said that there will not be any allocated ROAP monies returned to the State at the end of the
current fiscal year
• Mr. Bryden asked how much would have to be added to the program to provide unlimited rides to
the 28 active riders under the EDTAP Program
CFPTA Agenda Packet 01/28/2016 17
• Mr. Smith suggested a hybrid approach or three proposals that would outline a specific number
of rides per month with one being unlimited, one being seven and one being 20 rides per person,
per month
• Mr. Bryden stated the current funding under EDTAP supports two rides per person, per month
for 28 individuals; however, if the ride allotment was increased to 20, then theoretically three
people of those 28 could use all of the available resources
• Mr. Bryden indicated the board needs to be very clear as to the level of service provided and this
should be a board analysis and decision
• Mr. Betz asked "why do we not exhaust the funds under the EDTAP Program and have a real
basis for denying service rather than one that is made up as a result of transferring funds"
• Mr. Eby stated the proposal was made looking by projecting costs over the entire fiscal year
• He stated should the Authority continues a policy to service the EDTAP with a portion of the
RGP funding, this policy will jeopardize Route 207 which services a significantly higher number
of individuals than the EDTAP Program
• He stated it also impacts individuals who are eligible for Paratransit DART services in and
around Route 207
• Mr. O'Grady said it appears that the Authority is going to have a shortfall in RGP which means
that at the end of the year, Wave will have to go back to the County requesting a additional
subsidy to support Route 207
• He said taking EMPL funds as suggested and moving them to cover those in need of Paratransit
services for employment means there is going to be a bigger shortfall for Route 207
• He concluded with "we will have to go to the local agency that supports that route and ask for
more money"
• Mr. Bryden asked, "so does that mean that Route 207 stops, does service cease"
• Mr. O'Grady replied we will have to ask for more money
• Mr. Smith inquired as to what type of vehicle is operated on Route 207
• Mr. Eby explained that both a Gillig bus and a LTV are used depending on capacity demands
during CFCC semesters
• Mr. Petroff stated that the board is in agreement that the remaining EMPL funds need to be
reallocated and put it back in EDTAP to support clients like Mr. Sawyer, but that leaves the
question of "what do we do with Route 207"
• Mr. Barfield stated he does not know how to answer the question pertaining to Route 207
• Mr. Petroff stated that how the board addresses a funding shortfall for Route 207 is part of
answering the initial question
• Mr. Betz stated it becomes a decision of the board to transfer funds from the undesignated fund
balance to fund Route 207 for the remainder of the year
• Mr. Eby stated that the reduction in 5310 funding the County received from the State and the
revised split in EDTAP funding between the County and the Authority led to the current shortfall
• He stated historically the County took 20% of the ROAP funding; however, this year the County
had to take 40 % of the funding in order to cover a shortfall in 5310 funding
• Mr. Betz stated the budget is not rigid, it is flexible and when issues arise, and suggested the
Authority us its fund balance to address the issue
• Mr. Eby referenced the requirement in the Interlocal Agreement and stated if unrestricted fund
balance is utilized, the Authority must deliver a plan to the County and the City to pay back that
portion of the fund balance in a period of two years
• Without additional funds the board will still have to make decisions as how to move forward and
possibly reduce service somewhere along one of our programs
• Mr. Petroff asked, "so do we just push this down the road ?"
• Mr. O'Grady replied that we need to go to the subsidizing agency and ask them to fill the hole
• He said the budget was developed expecting to get more money for these programs and to
support Route 207 and now it is not available so there is a shortfall
CFPTA Agenda Packet 01/28/2016 18
• Mr. Petroff recognized Ms. Pinder to speak to the issue
• Ms. Pinder asked if the EMPL funds could be used for Paratransit service for those individuals,
such as Mr. Sawyer, in need of transportation to and from work
• Mr. Eby replied that this is a question for DSS since under the current EMPL structure, DSS only
provides fixed -route bus passes to qualifying individuals
• Mr. Eby stated several years ago, DSS utilized Paratransit services for qualifying clients under
the EMPL Program and if the County decides they want to expand the program to Paratransit
service, he would recommend that the board support the change
• Mr. Pinder asked how many EDTAP customers are trying to go to work and how can we fund
their transportation under the EMPL Program
• She stated the recommendation the county was trying to make was not to move the money from
the EMPL program, but rather keep the EMPL funds in the program and open the program to
those who are in need of Paratransit services to get to and from work
• Mr. Eby stated this recommendation is allowable under the current parameters of the ROAP
program; however, he advised that the revised program would only include EDTAP customers
utilizing transportation for work purposes while excluding EDTAP customers who are utilizing the
service for purposes other than employment
• He spoke to Mr. Smith's point that to some degree we are prioritizing transportation; however,
this is allowable under the program
• Mr. Eby stated "that's (prioritization) is a policy you have to be aware of before a decision is
made"
• Mr. Petroff stated the deficit regarding Route 207, which services a far greater population and is
less expensive than the other two programs, must still be considered
• He stated by continuing service on Route 207 the Authority is able to move more people at a
lower cost
• Mr. Smith inquired as to the operating schedule for this route and indicated Wave needs to try to
provide transportation to as many as possible but must make compromises knowing there is a
limited amount of funding
• Mr. Smith suggested a look at the service hours of the route and perhaps limiting service rather
than eliminating it
• Mr. Eby indicated this route currently operates on a limited schedule as service is not provided
on nights or weekends
• Mr. Barfield addressed Mr. Petroff by stating Ms. Pinder is Deputy County Manager over DSS
"so I think she has given you an idea of what DSS wants to do which I think has been
communicated long ago, if I am not mistaken"
• Mr. Eby stated he believes the misunderstanding can be attributed to that fact that assumptions
were made as how to move the money and staff was informed that this is clearly a board policy
decision
• Therefore, staff is requesting direction from the board by adoption of a motion regarding the
allocation of ROAP funding
• Mr. Barfield stated so that means we would not see the big shift from EMPL to RGP
• Mr. Eby stated that that was correct, but reiterated that this is a board decision
• He recommended staff may be able to find a way to make RGP work for the rest of the fiscal
year if former EDTAP clients could be eligible for the NHC DSS EMPL program via Paratransit
• He stated a long term solution to the current approach was critical but could be addressed with
the finance and budget committee as they moved into the FY 2017 budget process
• Mr. Smith indicated he would like to know the cost for certain solutions as mentioned previously,
because it may only cost an additional $5,000 or $10,000 to cover those individuals under the
EDTAP Program that could be switched to the revised EMPL Program
CFPTA Agenda Packet 01/28/2016 19
• He stated it needs to be determined how much will be left over under the EMPL program that we
can transfer to EDTAP or RGP; however, without this data it is difficult to identify how much
money will be spent
• Mr. Eby stated to solve the immediate problem, the best way forward would be to work with Ms.
Pinder to ensure that if there are folks that eligible for transportation services under the revised
EMPL Program, to shift them immediately so they can utilize Paratransit service for work and
prior to the next meeting develop an estimate of EMPL Program passengers and how much can
be moved to the EDTAP Program and RGP
• Mr. Barfield stated that communication about the program with passengers could have been
better
• Mr. Eby agreed and stated "part of the challenges we deal with are folks that may have
developmental disabilities and getting to the appropriate person to talk to, whether it is their case
worker or guardian to say here is what needs to happen can be a challenge and we need to do a
better job of reaching out and communicating"
• Mr. Eby stated that the Authority's new Mobility Manager has been identified as the Authority's
elderly and disabled transportation point of contact
• The designation should prevent future communication issues between Wave Transit and its
clients
• Mr. Eby stated funding for elderly and disabled transportation will continue to be a challenge but
hoped the Authority could move forward with a better understanding of how to get clients the
transportation services they need, whether it be through Wave or through other resources
• Mr. Petroff stated "so my understanding from your further statement was while your previous
recommendation did not fall on a lot of favor on the board, you are coming up with another
potential scenario where you keep that money in the EMPL program, work with County to
immediately open that up to Paratransit as well as fixed route, and see what kind of impact that
is and leave the deficit on the 207 what funds you have left over because you believe it is
potentially going to be a smaller pool utilizing that service, and the board would allow you to
continue to operate the 207 knowing that we are in a deficit"
• Mr. Eby confirmed Mr. Petroff's statement with the disclaimer that funding for Route 207 is not
clear if the change to EMPL and EDTAP are made
• He stated he understands the boards direction to see that Mr. Sawyer's transportation needs are
met
• Mr. Eby stated if the problem can be addressed short term through until staff can get a better
understanding of the data, long term impacts can be discussed at a future meeting
• Mr. Koeppel stated he appreciated the way in which the plan to move forward was summarized
in the short term and recommended support for the motion made by Mr. O'Grady for a resolution,
perhaps a sixty day resolution, in which Wave and NHC DSS open up the EMPL for Paratransit
services and review the data after the sixty day period, then the board can make a decision and
have a baseline for moving forward
• Mr. O'Grady stated he accepts Mr. Koeppel's statement and would like to add to it by stating this
situation reflects that Wave is a hand to mouth organization with no dedicated funding and if
funding is not allocated to RGP there will be a deficit for the route
• Mr. O'Grady restated his original motion to keep funding in the EMPL program, work with NHC
and NHC DSS to immediately allow Paratransit services under the EMPL program, and evaluate
the budgetary impact on Route 207
• As part of the motion, staff would report back to the board
• He stated the Authority can only provide the service where revenue has been identified and
allocated
• Mr. Koeppel stated that rather than sixty days, would the board would be willing to go along with
an evaluation after thirty days as there may be some meaningful changes that can be
addressed in a more timely fashion
CFPTA Agenda Packet 01/28/2016 20
• Mr. Petroff stated he will defer to Mr. Eby; however, if the data is available and can be provided
at the January meeting then the people who are in need of service will not have to wait a full
sixty days for clarification as to their transportation services
• Mr. Smith stated his understanding of the conversation is that the Authority could solve this issue
immediately by using the EMPL funds to open up for Paratransit services for those in need of
transportation for work related purposes
• He indicated the problem at hand may be resolved shortly without the need for EDTAP funds
• Mr. Bryden asked "so all those under EDTAP utilizing services for employment would be moved
under the EMPL Program and that the EMPL Program would be redefined not just to be fixed
route but also Paratransit"
• Mr. Petroff stated his understanding was that is what the county and staff is recommending
• Mr. Kelly asked "would we only move the people out of the EDTAP into the EMPL who are using
it for work"
• Mr. Smith then indicated that this could possibly increase the number of rides per month for
remaining individuals under the EDTAP Program
• Mr. Eby stated that as proposed, the EDTAP restriction would remain at two per month and staff
has not been made award of issues related to the ride restriction
• Ms. Ryan asked for confirmation that there is no priority under the eligibility for these programs
for work and doctor's appointments
• She asked if there is some kind of priority system being set up now for disabled over non -
disabled when you compare these programs to Route 207
• Mr. Eby stated that as proposed and based on Mr. Smith's comments, the EMPL Program would
be restricted to employment; however, the EMPL funds are not just restricted to individuals with
disabilities but they are available to anyone in the County who meets the criteria as determined
by DSS
• Mr. O'Grady requested clarification on the motion
• Ms. Fox stated the motion of the floor is that EDTAP will remain a service for elderly and
disabled with a two ride per person, per month restriction, the EMPL Program requirements will
be revised to include both fixed route bus service as well as Paratransit services and the RGP
funding will be evaluated after a thirty day time period
• Mr. Betz restated his second to the motion and the motion carried
• Mr. Eby apologized to those individuals that were adversely impacted by the changes and
indicated he will ensure that communication is improved
• Mr. Betz stated that anytime a decision is made that impacts service and ridership must be
communicated and presented to the board
EXECUTIVE COMMITTEE
Mr. Petroff stated that the committee did not meet
Mr. Petroff asked Mr. Kelly if he was willing to Chair the Facilities Committee as his involvement
in the Maintenance and Operations facility and his expertise as an engineer is extremely
beneficial and appreciated
Mr. Kelly indicated he is pleased to be of service and indicated the first meeting will be held at
11:00 am prior to the January 28, 2016 meeting
PLANNING AND OPERATIONS COMMITTEE
Mr. Petroff recognized Mr. Koeppel to give the committee report
Mr. Koeppel said that there was less than a 1 % decrease in ridership for the month of November
2015 as compared to November 2014
Mr. Petroff made note of the reduction in preventable accidents from 9 to 1 this year and stated
First Transit should be commended
CFPTA Agenda Packet 01/28/2016 21
• He stated Route 108 continues to show a positive trend since implementation of weekend
service in August 2015
• Mr. Koeppel said Wave Transit has received $38,368 in advertising revenue for FY 16 which is a
40% increase in revenue as compared to FY 15
• Mr. Koeppel said that the permits are in place for bus shelters and benches and construction is
expected to begin in early 2016
• Mr. Koeppel said that every bus stop has been assigned a unique identifier and staff is working
with local emergency personnel for direction as to the print and placement of the numbers on the
actual bus stops
• He stated the project should conclude early 2016
FINANCE & BUDGET COMMITTEE
• Mr. Petroff recognized Mr. Bryden to give the committee report
• Mr. Bryden stated the fuel and lubricants line items continue to run well below the budgeted
amount while maintenance runs well above
• He stated the budget is about $120,000 below budget on fuel and lubricants and about $250,000
above budget on maintenance
• He stated the Authority is 42% through the fiscal year and the majority of budgeted line items
remain on target
• Mr. Petroff commented on the almost $70,000 jump in maintenance expenses as compared to
the previous month
• He asked if this increase is attributed to maintenance catching up or utilizing outside contractors
for larger repair items
• Mr. Bryden indicated the 30 day net billing cycle is one contributing factor to the high
maintenance figures
• Mr. Eby stated there were a significant amount of engine rebuild invoices that came in at one
time
• He stated staff has informed First Transit that the budget for maintenance for the remainder of
FY 16 has been restricted to $35,000 per month
• Exceptions to the amount would be considered
• The restriction should allow the fiscal year budget to be completed within the budgeted
allocations
FACILITIES COMMITTEE
Mr. Petroff stated the committee did not meet; however, the committee is scheduled to meet in
January to discuss the WMMTC
STAFF REPORT
• Mr. Petroff recognized Mr. Eby to give the committee report
• Mr. Eby gave a brief presentation on the FAST Act, a five year transportation bill that was
recently passed by Congress
• Mr. Eby indicated that bus and bus facility monies will increase throughout the five years of the
FAST Act
• Mr. Eby noted a significant decrease in bus and bus facility monies since 2012
• Mr. Eby stated that one most important takeaways is the increase in funding for bus and bus
facilities at levels comparable to 2012, prior to the decrease in funding
• Mr. Eby stated if Wave can demonstrate the need through a competitive grant process for rolling
stock the Authority has a good shot at securing the monies to continue replacing fixed -route
buses and shuttles
CFPTA Agenda Packet 01/28/2016 22
• Mr. Eby said a recommendation to the finance and budget committee for FY 2017 will be to hold
the line with current levels of service, with a goal to replace thirteen buses during the five year
contract with Gillig
• He concluded that the objective is to maintain the current level of service with no reductions in
service while identifying competitive revenue options for rolling stock
• Mr. O'Grady inquired as to the status of the two LTV's from Durham
• Mr. Eby confirmed that the vehicles have been received, performed well in their travels to
Wilmington, and are undergoing inspection and should be ready when UNCW classes resume in
January
• Mr. Eby provided a brief update on the Multimodal Transportation Center per the request of Mr.
Bryden and indicated a detailed report will be provided by the Facilities Committee at the
January meeting
CONTRACTOR REPORT
• Mr. Petroff recognized Mr. Harned to give the contractor report
• Mr. Harned thanked Contractor Assistant General Manager, Ms. Heather Mercer, for her hard
work and long hours while First Transit secured a new Operations Manager
• Mr. Harned recognized Contractor General Manager, Mr. Garner, to provide the contractor
update
• Mr. Garner stated that increased operator overtime is attributed to seven employees that have
been out for extended periods of time on FMLA and worker compensation and other operators
conducting training for new employees
• He stated First Transit has five new hires that are undergoing training which will help to control
operator overtime moving forward
• He stated First Transit will have a better understanding of operator overtime moving forward and
thanked the operators for stepping up
• Mr. Garner spoke to the safety record for this year and revealed that safety meetings will be held
on a regular basis moving forward
• Mr. Garner touched on the training that has been provided to the mechanics and stated 70% of
the mechanics have been transit mechanics for fewer than three years and 40% of the
mechanics have been transit mechanics for less than six months
• He stated First Transit has a very new crew of mechanics and stated they will be provided with
the training needed to develop and maintain a strong maintenance program
• Mr. Garner stated he is trying to organize a Safety Committee comprised of maintenance staff,
dispatchers and bus operators, to coordinate ways to improve overall safety
• Mr. Garner stated First Transit has successfully taken over the Paratransit maintenance will no
issues
• Mr. Petroff inquired about the current staffing level for operators and maintenance
• Mr. Garner confirmed that staffing levels for each department are at 100%
• He also stated that the service department is now fully staffed with three employees and
anticipates cleaner buses moving forward
• Mr. Harned provided a recap on the training opportunities and maintenance oversight for the
past month which has resulted in savings for the Authority
• He indicated that First Transit is overseeing contract negotiations with the union
• Mr. Harned stated First Transit is willing to reduce the cost of the management contract if the
Authority is willing to extend the current agreement
• Mr. Betz commended Mr. Harned for adding the Contractor's Report to the board agenda as
updates highlighting progress can be used to their advantage
• He stated it is important for the contractor to have a direct dialogue with the board
• Mr. Betz touched on safety and stated the reason why the Authority went with First Transit was
their emphasis on safety and advised him to think internally about safety meetings
CFPTA Agenda Packet 01/28/2016 23
• He recommended that First Transit continue to keep safety at the forefront
NEW BUSINESS
• Mr. Bryden requested confirmation from staff that Mr. Sawyer will be receiving transportation to
and from work under the EMPL Program
• Mr. Eby stated that the recommendation was to work with DSS to see how many clients may be
eligible for the EMPL Program that have been limited under the EDTAP Program
• Mr. Bryden stated the second part of the question is how many of them will move from EDTAP to
the revised EMPL Program
• Mr. Eby stated staff would to attempt to codify the data and present at the next meeting
• Mr. Eby confirmed that even if he has to take Mr. Sawyer to work on Monday, he will see to it
that he has transportation
ADJOURN
• Hearing no further business, Mr. Petroff requested a motion to adjourn
• Mr. Betz made a motion to adjourn the December 2015 board meeting
• Mr. Richards seconded the motion and the motion carried
SCHEDULING OF NEXT MEETING
• The board meeting is scheduled for January 28, 2016 at 12:00 pm in the Forden Station
conference Room
Respectfully Submitted,
Albert Eby
Executive Director
/kw
CFPTA Agenda Packet 01/28/2016 24
Continuity of
Operations Ran
January 28, 2016
Revision 002
CFPTA Agenda Packet 01/28/2016 25
Contents
1.0 Executive SAmmary ............................................................................................. ..............................1
2.0 Introduction ........................................................................................................ ..............................1
2.1 Purpose ........................................................................................................... ..............................1
2.2 Sope and Applicability ................................................................................... ..............................2
3. Policy ................................................................................................................... ..............................2
4. Obj ect ives ........................................................................................................... ............................... 3
5. Essential Functions .............................................................................................. ..............................3
5.1 Alternate Facilities ................................................................................................ ..............................4
6. Concept of Operations ........................................................................................ ..............................4
7. Planning Sm narios ............................................................................................. ............................... 5
8. Planning Assumptions ......................................................................................... ..............................6
9. COOP Execution ................................................................................................. ............................... 6
9.1 COOPActivation Decision Matrix .......................................................................... ..............................7
10. Time- Phased Implementation ............................................................................ ..............................9
10.1 Time Phased Implementation Matrix ............................................................. ..............................9
10.2 Phase I: Activation and F;blocation ................................................................. ............................... 9
10.3 Phase 11: Alternate Operations ....................................................................... .............................10
10.4 Phase III: F;bconstitution ................................................................................ .............................11
11. Operational Hours .............................................................................................. .............................11
12. Orders of SAccession and Delegation of Authority ............................................ .............................12
12.1 Communications ............................................................................................ .............................12
12.2 F;bsponsibilitiesand Procedures .................................................................... .............................12
13 COOP Mai nt enance ................................................................................................... .............................13
13.1 COOPPlan Maintenance Matrix ........................................................................ .............................13
Appendix A— Memorandum of Understanding ............................................................. .............................14
CFPTA Agenda Packet 01/28/2016 26
1.0 °/f{F -pW* 3p# 0 °fir
This Continuity of Operations Plan (COOP) for Wave Transit ensures that the public
transportation system will continue to execute our essential functions in the event of an
emergency. This plan ensures the safety of our employees and staff. By planning, we will be
able to have protection implemented for our essential equipment, records and other assets.
This ODOPwill also reduce disruptions to our operations and minimize damage and losses. In
the event of an emergency, OOOPwiII enable us to achieve an orderly recovery. It is essential to
have relocation sites and other operational and managerial requirements in place before an
emergency occurs.
2.0 Introduction
Wave Transit has operations that must be performed or rapidly and efficiently resumed in an
emergency. While the impact of an emergency cannot be predicted, planning for operations
under such conditions can mitigate the impact of the emergency on our people, our facilities
and our mission. To that end, Wave Transit has prepared a Continuity of Operations Plan
(COOP).
This COOPestablishes policy and guidance to ensure the execution of the essential functionsfor
Wave Transit in the event that an emergency at the agency or in its service area threatens or
incapacitates operations and /or requiresthe relocation of selected personnel and functions.
OOOPplanning isa good business practice and ispart of thefundamental mission of all
agencies as responsible and reliable publicagencies. The changing threat environment and
recent emergencies have shifted awarenessto the need for COOpcapabilitiesthat enable
agenciesto continuetheir essential functions across a broad spectrum of emergencies. In
addition, the potential for terrorist use of weaponsof massdestruction (WMD) hasemphasized
the need to provide a capability that ensuresthe continuity of essential management and
technical functionswithin the organization.
2.1 Purpose
After such events as 9/ 11 and the London subway/ bus bombings, all transit systems have
become more aware that none of us is immune to such an attack. The COOpwill establish
guidelinesfor Wave Transit to use in the event of a local disaster, such as a severe storm, to
larger disasters, such as a terrorist attack.
The capability to prepare for, respond to, and recover from emergencies affecting Wave
Transit's operations is dependent upon the proficiency and well being of its employees and the
clarity of its leadership. To ensure the capability to support employees and contractors, system
users, emergency responders, local and regional emergency management agencies, and the
public during emergencies, Wave Transit hasadopted this COOP.
CFPTA Agenda Packet 01/28/2016 27
This COOP describes how Wave Transit will sustain the capability to perform essential functions
during and after ad isrupt ion in operations whether caused by severe weather, other natural or
man -made disasters, or malevolent attack. This COOP ensures that Wave Transit:
• has the capability to implement the COOP both with and without warning;
• is able to perform essential functions no later than 12 hours after activation of the COOP;
• is able to maintain essential functions for up to 30 days;
• includes regularly scheduled training and exercising of equipment, and procedures used to
support the agency during a COOP event;
• supports the location of alternate facilities in areaswhere the abilityto initiate, maintain, and
terminate continuity operations is maximized;
• supports the identification and documentation of temporary operating procedures which
enable the performance of essential functions; and
• promotes the development, maintenance, and annual review of agency COOP capabilities.
This COOP is developed in accordancewith Federal Emergency Management Agency (FBVIA)
guidance in the National C:ontinuityFPolicylmplementation F Yan, Continuity Guidance Orcular 1
(CGC 1); Continuity Guidance for Non- Federal Government4 dated Jul 2013; Continuity
Guidance Orcular 2 (OGC2), Continuity Guidance for Non - Federal Governments, dated October
2013.
2.2 3£Q*• ° AW r -o-6 (r ¢@14�
The COOP is applicable to all Wave Transit employees and contractors. This COOP describes the
actionsthat will betaken to activate aviable COOP capability within 12 hours of an emergency
event, and to sustain that capability for up to 30 days. The OOOPcan be activated during duty
and non -duty hours, both with and without warning.
The OOOPcoversall facilities, systems, vehidesand buildings operated or maintained by Wave
Transit. The COOP supports the performance of essential functionsfrom alternate locations
(due to the primary facility becoming unusable, for long or short periods) and providesfor
continuity of management and decision - making at the agency, in the event that senior
management or technical personnel are unavailable.
The COOP isdistributed to senior managerswithin Wave Transit. Training is provided to Wave
Transits personnel with identified responsibilities . The COOP is shared with local emergency
response and management agencies, designated emergency coordination officers, the New
Hanover County Director of Emergency Management, emergency management planners, and
other interested parties.
3. Policy
It isthe policy of Wave Transit to respond quickly at all levels in the event of an emergency or
threat. These include human, natural, technological, and other emergenciesor threat. In order
to continue essential internal operations and to provide support to our customers, emergency
CFPTA Agenda Packet 01/28/2016 28
management and response agencies, and other agencies or services that maybe affected by
the emergency.
4. Objectives
The objectives of this plan areas follows.
• maintain command, control and direction during emergencies;
• reduce disruptionsto transit operations;
• protect essential facilities, equipment and other assets;
• assess and minimize damage and losses;
• provide organizational and operational stability;
• facilitate decision- making during an emergency;
• achieve an orderly recovery from emergency operations;
• provide for the line of succession to critical management;
• provide resources and capabilities to develop plans for restoring or reconstituting
regular activities, depending upon the scope, severity, and nature of the incident; and
• fulfill the agency's responsibilities in local, regional and state emergency operations
plans and agreements with local emergency response and management agencies.
Emergencies may occur both with and without warning which result in the:
• loss of transportation services;
• loss of radio communication;
• loss of power;
• lossof fuelingand maintenance function;
• denial of use of facilities or vehicles.
When confronting events that disrupt the normal operationsof Wave Transit, the agency is
committed to provide essential functions, which must be continued even under the most
challenging emergency circumstances. Wave Transit has identified essential functions as only
those most critical activitiesthat ensure the safety and security of system users, employees,
contractors, emergency respondersand the public; support the restoration of internal
operations; and facilitate emergency response operations.
During activation of this OOOP, all other activitieswill be suspended to enable the agency to
concentrate on providing the essential functionsand building the internal capabilities necessary
to increase and eventually restore operations. Appropriate communications with regular or
expected users of services provided by those suspended serviceswill be a priority. All
communications and correspondence after a catastrophe will be channeled through the Wave
Transit Executive Director or the Public Information Officer. Under no circumstances should a
CFPTA Agenda Packet 01/28/2016 29
Wave Transit employee or contractor correspond with outside entitiesduringthe activation
and execution of the COOP.
Wave Transit has identified the following as essential functions in this COOP.
1. Sacure the safety of personnel, take action to minimize the spread of the damage, notify
emergency personnel, and, if possible, take action to preserve its assets. After the
situation stabilizes, the Executive Director will notify other agencies (as necessary) with
a status report detailing the current situation.
2. The Executive Director will activate all or parts of the OOOPand the employeeswill go
into action to recover or ensure critical business functions.
3. Once the critical busi ness f unct ions are in operation, the Executive Director will
determine if steps need to be taken to resume non - critical busi ness f unct ions.
4. Non - critical business functionswill be phased in as space becomes available. Many of
the decisions depend upon the extent of the loss of the facility.
5. The Executive Director will assess the situation and will determine if an alternate facility
is necessary.
0j— ! "* SSE.* o &D c >
Operations offices, including fixed route and paratransit dispatch and maintenance facilities are
located at 1480 Castle Hayne Fbad, Wilmington, NC28401. Administrative offices and an
operations transfer facility are located at 505 Cando Greet, Wilmington, NC28405. If an
emergency occurs at either location, operations of the affected office will transfer to the other
location.
Wave Transit recognizes that normal operations maybe disrupted and that there maybe a
need to perform essential functions at alternate facilities. The two main Operational and
Administrative Facilities are over 3 miles apart; therefore, the likelihood of both sites being
impacted by the same event is unlikely (aside from a weather emergency). In addition,
depending on the emergency conditions, Wave Transit will also require access to additional off-
property fad litiesthat could support essential functions.
In the event both facilitiesare rendered inoperable, facilitiesoutside the affected areawill be
secured to continue transit operations. Considerat ions wiII be made for the impact operations
will have on the surrounding area.
0_; G . • 1ri �A
Escalation from normal operationsto an emergency state will occur for Wave Transit when the
order to activate the OOOP is given by the Executive Director or the situation obviously dictates
that normal operations are impossible due to significant or catastrophic loss of data, facilities,
or personnel. At that time, all employeeswill take action directed by the procedures in this
plan. The scope of this plan includes emergencies resulting from medical emergencies, severe
storms, bombs and /or explosions, fires, hazardous materials threats, power failures and
terrorist attacks that result in a loss or serious potential loss of data, facilities, or personnel. The
CFPTA Agenda Packet 01/28/2016 30
Executive Director will activate the plan when loss in any of these areas adversely affects the
agency's abiIityto carry out its mission.
The OOOP has been developed around a set of scenarios that reflect Wave Transit's assessment
regard ingt he types of events that may result in COOP activation. For each type of scenario,
activities have been identified to ensure the activation of the OOOPand the continuous
capability of Wave Transit to make decisions and take anion.
Activation of the OOOPmay involve:
• the deliberate and pre - planned movement of selected key personnel and technical
personnel to an alternate operating facility;
• the implementation of temporarywork procedures;
• the delegation of emergency authoritiesto suocessorsof senior management who are
unavailable during the emergency.
The following four typesof scenarios have been identified by Wave Transit asthe most likely to
trigger OOOPactivation:
• Planning Scenario 1: Operations and Administrative FaciIities Alone Affected. Under
thistype of scenario, the main Operationsand Administrative facilitiesare dosed for
normal business activities, but the cause of the disruption has not affected surrounding
facilities, utilities, or the transportation network. The most likely causes of such
disruption are fire; system /mechanical failure; loss of utilities such as electricity,
telephone, water or explosion (regardless of cause) that produces no significant
damage to any other facilities or systems used by the agency. This type of event could
significantly impact Wave Transit's communications, monitoring, and information
technology capabilities. Vehiclesand maintenance facilities, located at or adjacent to
the operations and administration facility, may be damaged or destroyed. Sanior
management, technical, and supporting personnel working at the facility may be lost,
injured, or remain unaccounted.
• Planning Scenario 2: Operations and Administrative Facilities and Surroundi ng Area
Affected. Under this scenario, the Operations and Administrative Fad lities as well as
supporting facilities are dosed for normal business activities as a result of widespread
utility failure; massive explosion (whether or not originating in the operations and
administrative facility); severe weather; civil disturbance; or credible threats of actions
that would preclude access or use of the Operations and Administrative Facility and
surrounding areas. Under this scenario there could be uncertainty regarding whether
additional events (such as secondary explosions, aftershocks, or cascading utility
failures) could occur. Duringthistypeof event, Wave Transit's primary fad Iitiesand the
immediate areas surrounding them are inaccessible.
CFPTA Agenda Packet 01/28/2016 31
Planning Scenario 3: Supporting FaalitiesAffected. Under this scenario, the Operations
and Administration Facilities are unharmed, but one or more support facilities are
inoperable. These may include vehicle storage facilities, maintenance facilities, transit
stations, or other systems used by the agency. This type of event could bet he result of
a natural disaster, workplace violence, cyber attack or other event.
Planning Scenario 4: Local/ Regional Area Affected. Under this scenario, the agency's
service area would be inaccessible for normal business activities as a result of amajor
disaster (hurricane, flooding) or an actual or threatened use of aweapon of mass
destruction such as a chemical, biological, radiological, or nuclear agent (whether or not
directed at the Operations and/or Adm i ni st rat ive Fad I it i es). Wave Transit's fad I it ies are
functional, but cannot be used because of the nature of the emergency.
Assumptions used to support Wave Transit's planning for each of these scenarios include the
following elements.
• Emergencies or threatened emergencies can adversely impact the agency's ability to continue
to support essential functionsand provide public transportation services.
• When a COOP event is declared, the agencywill implement a predetermined plan using
trained and equipped personnel.
• Agency and non - agency personnel and resources located outside the area affected by the
emergency or threat will be available as necessary to continue essential functions.
• The agencywill provide operational capability within 12 hoursof the event and be able to
continue essential operationsfor 30 daysor until termination of the event, whichever isearlier.
• Recovery for anything less than complete destruction will be achievable by using the COOP.
• Normally available staff members may be rendered unavailable by a disaster or its aftermath,
or may be otherwise unable to participate in the recovery.
• Procedures are sufficiently detailed so someone other than the person primarily responsible
for the work can follow them.
• Recovery of a critical subset of the agency's functions and application systemswill occur to
allow the agency to continue essential functions adequately.
• A disaster may require agency users, clients and local agenclesto function with limited
automated support and some degradation of service, until full recovery is made.
9. #/ / 0 °/a F-Pwm
The Executive Director, with advice from the Director of New Hanover County Emergency
Management, has the authority to declare a state of emergency operation and activate the
COOP; however, individuals of the Succession list or higher government authorities may do so if
the Executive Director is not available.
• Known threats and emergencies (with warning): There are some threats to operations
that may afford advance warning that will permit the orderly alert, notification,
evacuation, and if necessary, the relocation of employees. Stuationsthat might provide
CFPTA Agenda Packet 01/28/2016 32
such warning include a hurricane, at ransportat ion accident resulting in at hreat of a
release of hazardous material or a threat of a terrorist incident.
Unanticipated threatsand emergencies (no warning) During Non -Duty Hours:
Incidents may not be preceded by warning, e.g., earthquakes, arson, hazardous
material, or terrorist incidents, and may occur while the majority of on -site staff is not
present. In these circumstances, while operations from the primary facilities may be
impossible, the majority ofr employeeswill still be able to respond to instructions,
including the requirement to relocate following proper notification.
• Unanticipated threatsand emergencies (no warning) During Duty Hours Incidents may
also occur with no warning during normal office hours. In these circumstances, the
Executive Director or hisappointed representative would implement execution of the
OOOP.
In each of these circumstances, the agency has developed an executive decision processthat
allowsfor a review of the emergency situation and determination of the best course of action
for response and recovery. This process uses a decision matrix for implementing the OOOP.
Careful review of this matrix should avoid premature or inappropriate activation of the agency
OOOP.
The decision matrix is below. Potential disruptions resulting from emergency events are
classified in Emergency Levels 1 through 5. Using these emergency levels, the Executive
Director, or a duly designated successor will activate or partially activate the OOOP.
The decision matrix focuses on the way in which the emergency event may affect the
capabilities of the agency to provide its essential functions. To remain flexible to the variety of
situationsthat could trigger activation or partial activation of the COOP, this matrix provides
guidance, and recommended impacts and decisions may be modified based on the actual
events.
Level of
OOOP Decision
Emergency
1
Impact: Disruption of up to 12 hours, with little effect on services or
essential functionsor critical systems.
Examples Major accident on highway or within the transit system.
Decision: No OOOPactivation required.
2
Impact: Disruption of 12 to 72 hours, with minor impact on essential
functions.
Examples Computer virus, small fire or moderate flooding.
Decision: Limited COOP activation, depending on agency requirements.
3
Impact: Disruption to one or two essential functions or to a vital system for
CFPTA Agenda Packet 01/28/2016 33
Level of
OOOP Decision
Emergency
no more than three days.
Examples Power outage, heightened Homeland Security Advisory System
Threat Level.
Decision: May require partial OOOPactivation to move certain personnel to
an alternate facility or location in the primary facility for lessthan aweek.
4
Impact: Disruption to one or two essential functions or to the entire agency
with the potential of lasting for more than three days but less than two
weeks.
Examples Scow/ ice storm, hurricane, workplace violence, major
telecommunications failure or major power outage.
Decision: May require partial OOOPactivation: Movement of some
personnel to alternate work site or location in the primary facility for more
than aweek may be necessary. Personnel not supporting essential functions
may be instructed not to report to work, or be reassigned to other activities.
5
Impact: Disruption to the entire agency with a potential for lasting at least
two weeks.
Examples Explosion, contamination of primary facility, major fire or
flooding, earthquake, tsunami.
Decision: OOOPactivation required: May require movement of many, if not
all, essential personnel to an alternate work site for more than two weeks.
Personnel not supporting essential functions may be instructed not to report
to work, or be reassigned to other activities.
CFPTA Agenda Packet 01/28/2016 34
109 Time- O&2:o§ )* cd60 •AF WM
The agency will use at hree-phased approach to the activation, management, and eventual de-
escalation of the ODOR
10.1 44 • 092:-§)* -61-0 .,cam °'1KC�3j
Phase
Time Frame
Activity
Phase 1
0 -12 Hours
* Notify affected local, regional and state agencies.
Activation and
* Notify agency employees and contractors regarding
F;bIocation
activation of ODOPand their status.
*Assemble documentsiequipment required for essential
functionsat alternate facility.
*Order needed equipment/ supplies.
*Transport documentsand designated communications.
*Secure original facility.
* Cont inueessential functions at regul ar fad I ity, if available,
until alternate facility is ready.
Phase 11
12 Hours-
* Provide guidance to personnel and information to the
Alternate
termination
public.
Facility /Work
* Identify replacements for missing personnel
Site Operations
*Commence full execution of operations supporting
essential functionsat the alternate facility.
Phase III
Termination
* Inform all personnel that the emergency no longer exists.
F;bconstitution
of
*Sdpervise return to normal operating facility.
Emergency
*Conduct a review of COOP executions and effectiveness.
A brief description of Wave Transit's approach to each phase of activation is below.
• Alert and Notification: The agency hasestablished a call list that will be activated when it is
determined that OOOPactivation is imminent.
• Initial Actions The agency will identify specific actions to betaken based on the cause of
activation. The Executive Director will inform all staff regarding pre - determine optionsthat
will be implemented to resume critical busi ness operat ions.
• For all emergency situationsthat require building evacuation, the following physical
security controlswill be implemented:
1. All employees will shut and lock their office doors prior to exiting the building.
2. Facil ities staff wi 11 secure building exits and any other doors as deemed necessary before they
exit the building.
CFPTA Agenda Packet 01/28/2016 35
• Activation Procedures Duty Hours The agency has established a call list that will activate
for an efficient and complete transition of direction and control from the primary facility to
the alternate facility.
• Activation Procedures Non -Duty Hours: A cal I list fort he notification of key staff has been
established. The senior person on site will activate the call list. This individual not ifiesthe
appropriate authorities and the Executive Director of the emergency. The Executive Director
then activatesthe OOOP.
• Deployment and Departure Procedures ( Time - Phased Operations): Allowances have been
made for partial pre - deployment of any essential functions that are critical to operations;
determination will be based on the level of threat. Authoritiessuch aspolice, fire
departments and emergency medical assistants are to be notified. If necessary, the
buildingswill be evacuated and all persons removed to a safe location.
10.3 OCR ?• )) N ' :Sq * / -o. <_° Me
• Execution of Essential Functions Wave Transit will perform any essential functions
determined to be critical to operat ions f rom the alternate fad Iity or using tem porary work
orders or procedures. Wave Transit will operate from another office or off -site location until
the affected site is repaired or suitable for use.
• Establishment of Communications. Wave Transit will re- establish normal lines of
communication within the agency, to external agencies, and to the public. Phone lineswill
be available from the other locations. Contracted ITpersonnel will be called in when the
COOP is activated to begin restoration or transfer of communications.
• Authority Support Staff. The Executive Director will assign responsibilitiesto staff that
perform essential functions. These staff memberswill provide critical support functionsfor
the employees and as otherwise needed. These critical functions include:
• Purchasing supplies, furniture, transportation, office equipment (non -ITand telephone)
for the recovery and any temporary sites
• Communicating statuswith the Executive Director
• Disbursing and tracking recovery funds
• Coordinating communications at offsite recovery locations(s)
• Managing relocation (moving) logistics
Each member of the staff is knowledgeable in the administrative functions of Wave Transit.
They share common skills and work to provide the administrative support functions required.
Theywill also workwith the ITContractorto establish an operational technology infrastructure
at the recovery center.
• Amplification of Guidance toAuthority Support Staff- Additional guidance will be provided
to all personnel in regards to duration of alternate operations and includes pertinent
information on payroll, time and attendance, duty assignments, etc.
• Development of Plansand Schedulesfor Reconstitution and Termination - As soon as
feasible, preparation of transportation services, communication and other activitiesto
transfer operations back to primary facility will begin. Circumstances may dictate that a new
primary facility is designated and occupied. Once the estimated time to return to the facility
CFPTA Agenda Packet 01/28/2016 36
is determined and the time estimate exceeds the Executive Director's expectations for a
reasonable recovery period, a search will begin for available space that can be used for an
indefinite period.
10.4 092:- )))Y2•£e
• Reconstitution Process. Wave Transit will develop general guidance and policy on ending
alternate operations and returning to a non - emergency status at the designated primary
facility. The Executive Directorwill designate staff to provide an assessment of the damages
and the expected duration of time until the resources are restored. This person or group
will also control and direr the facility recovery process. This can include regaining the use
of Wave Transit building(s) or a new permanent location. Their key roles and responsibilities
are as fol lows:
• Damage assessment
• Coordinate recovery/ rebuilding of either Wave Transit building or new permanent
location
• Coordinate recovery/ reinstallation of communications either at Wave Transit buildings
or new permanent location
• Coordinate the reimplementation of transportation services.
Reconstitution Procedures. Wave Transit will establish specif ic actions to ensure atimely
and efficient transition of transportation services, communications, direction and control to
primary facility. Eery effort should be made to mitigate the loss of critical or vital
information.
After - Action Review and Remedial Action Plans. The agency wil I develop a task force to
assess all phases and elements of the alternate operations and provide specific solutions to
correct any areasof concern. The Executive Director alongwith the staff will meet after
alternate operations are up and running and make any necessary changes.
�i
During activation of the COOP, a Wave Transit staff member will call in essential personnel. A
tentative work schedule is 7 AM to 6 PM, or daylight hours, until the emergency is under
control. Some employees maywork longer hours. The Executive Directorwill determine awork
schedule as soon as possible after the activation of the plan.
Wave Transit recognizesthat the COOP should be able to be activated under all conditions.
• With Warning It is expected that, in many cases, Wave Transit will receive awarning of
at least a few hours prior to an event. Thiswill normally enable the full execution of the
OOOPwith a complete and orderly alert, notification, and deployment of key personnel
to an assembly site or a pre - identified deployment location. Notification will occur
through email and telephonic methods, using standard procedures developed by the
agency.
CFPTA Agenda Packet 01/28/2016 37
Without Warning The ability to execute the ODOPfollowing an event that occurs with
little or no warning wiII depend on the severity of the emergency and the number of
personnel that survive.
Non -Duty Hours. Staff should be able to be alerted and activated to support
operationsfor the duration of the emergency. Notification will occur by telephone.
Under certain circumstances, in- person notification may be necessary.
Duty Hours. If possible, the OOOPwill be activated and available staff memberswill
be deployed as directed to support operationsfor the duration of the emergency.
Depending on the statusof communications, notification will be made bytelephone,
in- person at facilities, and usingthe designated call list
In the event that the Executive Director is unavailable during an emergency, Wave Transit has
developed a set of procedures to govern both orders of succession and delegations of
authority. Authorized successors have been identified as key personal within Wave Transit.
6q& Communications
Communications is a critical component of a successful OOOP plan. Communication systems
must support connectivity to internal operations, other agencies and the public. To ensure
communications during 030P events, Wave Transit has identified primary and alternate modes
of communication, and preventive controls in place for each means of communication. Personal
comm unications devices, such as cell phones and text i ng devices wi I I be used for transfer of
information if normal telephone service is not available; otherwise, the use of "runners" will be
utilized if all other methodsof communications are inoperable.
The following lists identify major responsibilities of key and designated staff required to
implement Wave Transit's O3OPplan. Wave Transit is a small urban transit system; therefore, it
will utilize Executive and Management staff to handle all emergency preparedness situations.
Each member of management may also have key people on their staff, who they will call upon
as needed.
The Executive Director is responsible for
• Presiding over Wave Transit staff during the emergency
• Keeping the public informed
• Making all decisions regarding security, safety and the buildings
CFPTA Agenda Packet 01/28/2016 38
The Director of Operations is responsible for
• Fbstoration of transportation services
• Assisting with coordinating the use of off facility centers
• Coordinating emergency response between facilities
• Fbporting response/ recovery efforts to the Executive Director
The Faci I it i es Manager is responsible for
• Coord i nat i ng t he use of off facility centers
• Coordinating with the Director of Operations
• The safety and security of the buildings and grounds of all locations
❑ ❑ #/ / 0 - °�WAEAE•
Wave Transit has developed an approach to maintaining aviable COOP capability. This
approach ensures the review and update of the COOP and its supporting documents, the
orientation of training of both existing and newly hired /appointed personnel.
ooyo� #/ / 0 0" ° K- ° @W AffA• - 0 W--g3j
Activity
Tasks
Frequency
Plan update and review.
* Fbview entire plan for accuracy
Annually
* Incorporate lessons learned and changes
in policy and philosophy
* Manage distribution of plan updates
Fbview and update
* Fbview for currency and new needs
Annually
supporting Memoranda of
* Incorporate changes, if required
Understanding/Agreements
*Obtain signature renewing agreement or
(Appendix A)
confirming validity
Train new key personal
*Provide an orientation and training class
Within 30
*Schedule participation in all training and
days of hire
exercise events
CFPTA Agenda Packet 01/28/2016 39
NEW HANOVER COUNTY CONTRACT # 08 -0090
STATE OF NORTH CAROLINA
MEMORANDUM OF UNDERSTANDING
NEW HANOVER COUNTY
WHEREAS, a critical need exists for buses to transport persons out of harms way
when either isolated emergencies, hurricanes, or other large scale emergencies present a
need to evacuate;
WHEREAS, various public entities have buses available that could be utilized to
address emergency situations.
NOW, THEREFORE the parties hereto agree as follows:
1. Upon notification from the New Hanover County Emergency Management
Director (hereinafter Director), the Cape Fear Public Transportation Authority
(WAVE) shall make available to New Hanover County designated buses with
drivers for emergency evacuations, as set forth in the attached Exhibit "A ". New
Hanover County shall reimburse WAVE according to the fee schedule (Exhibit
"A'% as agreed upon by all parties. The buses will be expeditiously dispatched to
a staging area specified by the Director.
2. This agreement shall be ongoing and remain in full force and effect unless
terminated by giving thirty days written notice.
This the day of 2008.
New Hanover County
By:
County Manager
THIS INSTRUMENT HAS BEEN PRE-AUDITED
[N THE MANNER REQUIRED BY THE LOCAL
GOVERNMENT AND FISCAL CONTROL ACT.
�, Cape Feaz Public Tran sportation
W= By: D
i3 el 10 W s
SE
( ) est 2004 'e,�
ATTEST:
N'
Secretary to the Board
das fio ,',"nty'Qtorney
l DIAL
5
CFPTA Agenda Packet 01/28/2016 40
Cape Fear Public Transportation Authority
System Security Plan
Effective January 28, 2016
Revision 003
CFPTA Agenda Packet 01/28/2016 41
t ill ; ;f,1
Section 1: Introduction to System Security ................................................................................. ..............................5
1.1
Purpose of System Security Program Plan and Program ............................................ ...............................
5
1.2
Goal, Objectives, and Tasks of the Program ............................................................... ...............................
5
1.3
Scope of Program ........................................................................................................ ...............................
6
1.4
Security and Law Enforcement .................................................................................... ..............................7
1.5
Management Authority ............................................................................................... ...............................
7
1.6
Government Involvement ........................................................................................... ...............................
7
1.7
Definitions .................................................................................................................... ..............................7
Section2:
Transit System Description ....................................................................................... ...............................
9
2.1
Background and History of Transit Agency ............................................................... ...............................
9
2.2
Organizational Structure ............................................................................................. .............................10
2.3
Human Resources ....................................................................................................... .............................11
2.4
Passengers ................................................................................................................... .............................11
2.5
Transit Services /Operations ........................................................................................ .............................11
2.6
Operating Environment ............................................................................................. ...............................
11
2.7
Passenger, Vehicle, and System Safety Program ........................................................ .............................13
2.8
Current Security Conditions ........................................................................................ .............................13
2.9
Existing Security Capabilities and Practices ............................................................... .............................13
Section
3: Management of the System Security Plan ................................................................ .............................14
3.1
Responsibility for System Security Plan ..................................................................... .............................14
3.2
Management of the Program ....................................................................................... .............................14
3.3
Division of Security Responsibilities .......................................................................... .............................14
Section
4: System Security Program Roles and Responsibilities .............................................. .............................18
4.1
Planning ...................................................................................................................... .............................18
4.2
Proactive Measures ..................................................................................................... .............................18
4.3
Training ..................................................................................................................... ...............................
19
4.4
Day -to -Day Activities ................................................................................................. .............................19
Section
5: Threat and Vulnerability Identification, Assessment and Resolution ....................... .............................20
5.1
Threats and Vulnerability Identification ................................................................... ...............................
20
5.2
Threats and Vulnerability Assessment ...................................................................... ...............................
21
5.3
Threats and Vulnerability Resolution ......................................................................... .............................23
Section
6: Implementation Goals and Objectives ...................................................................... .............................23
6.1
Implementation Schedule ............................................................................................ .............................23
6.2
Evaluation ................................................................................................................... .............................24
Section
7: Modification of the System Security Program Plan .................................................. .............................24
7.1
Initiation .................................................................................................................... ...............................
24
7.2
Review Process ......................................................................................................... ...............................
24
7.2
Implement Modifications .......................................................................................... ...............................
24
CFPTA Agenda Packet 01/28/2016 42
This System Security Plan was adopted by:
Cape Fear Public Transportation Authority
Adopted at a regular meeting
on January 28, 2016 By:
(seal)
Jeffrey B. Petroff, Chairman
Attest
Don Betz, Secretary
CFPTA Agenda Packet 01/28/2016 43
System Security Program Plan Revision History
CFPTA Agenda Packet 01/28/2016 44
VIII
a.
a o
. ,
a
'u' ""
a
o
® .
06/15/2012
001
No Revisions Required.
a. Updated organization chart
06/01/2013
002
b. Added facility under construction
c. Added new federal requirements
06/23/2014
002
Updated organization chart. Attached to chart into
current document.
a. Updated organization chart
b. Added new facility, and removed two old facilities
1/28/16
003
c. Removed Safety and Training Manager, reassigned
duties
d. Moved some mechanic duties to Director of Planning
and Development, as head of facilities
CFPTA Agenda Packet 01/28/2016 44
Section 1: Introduction to System Security
1.1 Purpose of System Security Program Plan and Program
To emphasize the importance of security in all aspects of our organization, the Cape Fear Public Transportation
Authority (Wave Transit) has established a set of comprehensive security activities which are documented in this
System Security Program Plan. The overall goal of the Security Program is to maximize the level of security
afforded to all our passengers, employees, and other individuals who come into contact with our system, vehicles,
and facilities.
As a result of this program, Wave Transit hopes to achieve not only an improved security record, but to establish
security in concert with system safety as our number one priority. In order to be effective, the program
documented is oriented toward identifying potential security problems and implementing remedial and /or
mitigating solutions before security breaches can occur. In addition, this Program Plan emphasizes post security
breach analyses so that appropriate and effective steps can be taken to minimize or prevent security breaches in
the future.
The purpose of this plan is to help establish and maintain the System Security Program for Wave Transit. It serves
as a blueprint for all security activities by:
• establishing how security activities are organized;
• outlining employee responsibilities with respect to security;
• instituting threat and vulnerability identification, assessment and resolution methodologies; and
• setting goals and objectives.
This plan will be evaluated annually and updated as necessary to record and evaluate past security performance of
the system, to identify modifications that are needed and to establish objectives for the upcoming year. Although
this plan sets a course for the direction of the Security Program to follow, the plan's existence alone does not
guarantee success. A commitment by Wave Transit and all of its employees to incorporate security into every
aspect of the system's operations is the only way to ensure improvement. For this reason, Wave Transit's
employees are considered to be the most important component of both this Security Plan and the Security
Program it supports.
1.2 Goal, Objectives, and Tasks of the Program
This Program demonstrates Wave Transit's process for addressing system security and emergency preparedness.
System Security — The application of operating, technical, and management techniques and principles to the
security aspects of a system throughout its life to reduce threats and vulnerabilities to the most practical level
through the most effective use of available resources.
Emergency Preparedness — A uniform basis for operating policies and procedures for mobilizing transit agency
and other public safety resources to assure rapid, controlled, and predictable responses to various types of transit
and community emergencies.
A. Goals
The goal of the System Security Plan is to provide Wave Transit with a security and emergency preparedness
capability that will:
1. Ensure that security and emergency preparedness are addressed during all phases of system operation,
including the hiring and training of agency personnel, the procurement and maintenance of agency
equipment, the development of agency policies, rules and procedures, and coordination with local public
safety and community emergency planning agencies.
CFPTA Agenda Packet 01/28/2016 45
2. Promote analysis tools and methodologies to encourage safe system operation through the identification,
evaluation and resolution of threats and vulnerabilities, and the on -going assessment of agency
capabilities and readiness.
3. Create a culture that supports employee safety and security and safe system operation (during normal and
emergency conditions) through motivated compliance with agency rules and procedures and the
appropriate use of operation of equipment.
B. Objectives and Tasks
The Security Program has five objectives with associated tasks:
Objective
Associated Task
Achieve a level of security performance and
.
Review materials available from FTA and
emergency readiness that meets or exceeds
NCDOT and other agencies regarding industry
operating experience of similarly -sized agencies.
standards.
•
Establish target measures of system security
and emergency preparedness performance.
•
Develop program budget and review process
commensurate with program scope.
Increase and strengthen community involvement
.
Establish scheduled and on -going meetings
and participation in the safety and security of our
with local emergency responders.
system.
•
Regularly review local Emergency Operations
Plans.
Develop and implement a vulnerability assessment
.
Establish Vulnerability Assessment Team
program, and based on the results of the program,
.
Initiate Annual Assessment Program, document
establish a course of action for improving physical
results, and report recommending action items
security measures and emergency response
for implementation.
capabilities.
Expand our training program for employees and
.
Develop training program in coordination with
contractors to address security awareness and
Wave Transit and local law enforcement.
emergency management issues.
.
Train all operators, supervisors, and facilities
manage s.
Enhance coordination with state and federal
.
Coordinate with FTA Regional Office and
agencies regarding security and emergency
NCDOT regarding notifications and resources
preparedness issues, particularly NCDOT and FTA.
for security and emergency preparedness
training.
•
Ensure adequate and proper distribution of all
information and materials from FTA and
NCDOT throughout Wave Transit.
1.3 Scope of Program
Wave Transit's Security Plan is applicable to all aspects of our current service, ensuring that our operations,
training, coordination with local public safety agencies, and general security and emergency preparedness
planning address concerns resulting from heightened threat levels. Key elements of the scope of the Security Plan
include:
1. An evaluation of our current capabilities to identify and prevent security incidents that may occur on our
property.
2. Development of a Vulnerability Assessment Program to identify our weaknesses and guide planning
activities.
3. Improved Physical Security
4. Review and expand, as needed, our training program for security and emergency response.
5. Enhanced emergency planning and procedures development.
6. Improved coordination with the Public Safety Agencies in our service area.
CFPTA Agenda Packet 01/28/2016 46
1.4 Security and Law Enforcement
Due to the relatively small size of Wave Transit, armed, professional security services are the duty of the
Wilmington Police Department (WPD) and the New Hanover County Sheriff's Department.
A. Agency Commitment
Wave Transit fully commits to employee and passenger safety. The bulk of the security responsibilities are
assigned to the front -line operations supervisors. The functions of the supervisors acting in a security role are to
maximize passenger and employee security; minimize fare evasion, facility vandalism, and destruction; and
generally increase the quality of service provided by Wave Transit. Supervisors work closely with the local law
enforcement whenever a situation requires.
B. Radio Communications
Wave Transit maintains two radio channels, either of which can be used during a security incident by any
involved supervisor or operator. In addition, Wave Transit's AVL system has security alerts that may be activated
during a security incident.
1.5 Management Authority
The authority for implementing the Security Plan resides with the Wave Transit Executive Director and the Board
of Directors. The Executive Director has the overall authority to carry out Wave Transit's mission statement. The
responsibility and authority for the preparation, implementation and update of the System Security Plan rests with
the Director of Operations, as authorized by the Executive Director.
1.6 Government Involvement
Wave Transit coordinates with state and federal government agencies to receive funding to support and ensure
compliance with regulations and grant requirements. Funding sources include federal, state, local and fares. While
there is no dedicated source of funding, it is expected that current funding levels will remain the same. This level
of government support allows Wave Transit to maintain its security program based on stable budgeting levels.
At the current time, the only funding requirement with a direct impact on security relates to federal funds received
under 49 USCS 5336. 49 USCS 5307 (J)(i) requires that the recipient of federal transportation funds under 49
USCS 5336 spend at least one percent of the amount received on mass transportation security projects.
1.7 Definitions
Emergency: A situation which is life threatening to passengers, employees, or other interested citizens or
which causes damage to any transit vehicle or facility or results in the significant theft of services
and reduces the ability of the system to fulfill its mission.
Fatality: A transit - caused death that occurs within 30 days of the transit incident.
Injury: Any physical damage or harm to a person that requires immediate medical attention and
hospitalization.
Safety: Freedom from danger.
Security: Freedom from intentional danger
Security Breach: An unforeseen event or occurrence that endangers life or property and may result in the loss of
services or system equipment.
Security incident: An unforeseen event or occurrence that does not necessarily result in death, injury, or
significant property damage but may result in minor loss of revenue.
CFPTA Agenda Packet 01/28/2016 47
Security threat: Any source that may result in a security breach, such as vandal or disgruntled employee; or an
activity, such as an assault, intrusion, fire, etc.
System: A composite of people (employees, passengers, others), property (facilities and equipment),
environment (physical, social, institutional), and procedures (standard operating, emergency
operating, and training) which are integrated to perform a specific operational function in a
specific environment.
System security: The application of operating, technical, and management techniques and principles to the
security aspects of a system throughout its life to reduce threats and vulnerabilities to the most
practical level through the most effective use of available resources.
System security management: An element of management that defines the system security requirements and
ensures the planning, implementation, and accomplishments of system security tasks and
activities.
System security program: The combined tasks and activities of system security management and system security
analysis that enhance operational effectiveness by satisfying the security requirements in a timely
and cost - effective manner through all phases of a system life cycle.
Threat: Any real or potential condition that can cause injury or death to passengers or employees or
damage to or loss of transit equipment, property, and /or facilities.
Threat analysis: A systematic analysis of a system operation performed to identify threats and make
recommendations for their elimination or mitigation during all revenue and non - revenue
operation.
Threat probability: The probability a threat will occur during the plan's life. Threat probability may be expressed
in quantitative or qualitative terms. An example of a threat - probability ranking system is as
follows: (a) frequent, (b) probable, (c) occasional, (d) remote, (e) improbable, and (f) impossible.
Threat resolution: The analysis and subsequent action taken to reduce the risks associated with an identified threat
to the lowest practical level.
Threat severity: A qualitative measure of the worst possible consequences of a specific threat:
Category 1— Catastrophic: May cause death or loss of a significant component of the transit system, or
significant financial loss.
Category 2 — Critical: May cause severe injury, severe illness, major transit system damage, or major financial
loss.
Category 3 — Marginal: May cause minor injury or transit system damage, or financial loss.
Category 4 — Negligible: Will not result in injury, system damage, or financial loss.
Unsafe condition or act: Any condition or act that endangers life or property.
Vulnerability: Characteristics of passengers, employees, vehicles, and /or facilities that increase the probability
of a security breach.
CFPTA Agenda Packet 01/28/2016 48
Section 2: Transit System Description
2.1 Background and History of Transit Agency
Created in 1974, the Wilmington Transit Authority (WTA) was initially implemented to provide public
transportation to the citizens of the Wilmington area. In December 2002, the WTA adopted the name Wave, as
well as a new logo and color scheme for the Authority. This change reflected a new vision for public
transportation in Wilmington. Capitalizing on our coastal environment, the name Wave allowed greater name
recognition throughout the area and positively represented public transportation throughout the region.
Rapid sprawl and rising traffic congestion throughout the region led the City of Wilmington and New Hanover
County to enter into an historic agreement in June 2003. The city and county merged the WTA and New Hanover
Transportation Services to form the Wilmington/New Hanover Transportation Agency (WNHTA). This
agreement merged the respective organizations for one year, in order to provide oversight of both agencies under
one public transportation authority.
In July of 2004 the WNHTA, the WTA and NHTS were dissolved and a new transportation authority was created.
The merged entity officially became the Cape Fear Public Transportation Authority, but kept the name Wave
Transit.
CFPTA Agenda Packet 01/28/2016 49
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2.3 Human Resources
Wave Transit employs approximately forty -five employees. The paratransit services are directly operated by
Wave Transit employees. A third parry contractor is contracted to run the fixed route and maintenance operations.
The contractor employs approximately eighty employees.
Wave Transit does not have a dedicated security department, but instead manages security with internal roles and
responsibilities. Below is a list of the positions and a summary of their security responsibilities:
Executive Director:
• Responsible for all oversight of system security
• Approves reports as required to FTA, NTD, and Board of Directors
Director of Operations:
• Oversees general compliance with the security program
• Reports security breaches to Executive Director
• Investigates security risk and reports findings to Executive Director
• Submits reports to FTA, NTD and other agencies
• Annually reviews and updates, as needed, the System Security Plan
• Ensures employees and contractors are aware and in compliance with the security program
• Conducts annual security audit
Managers (Contract & non - Contract Positions)
• Investigates and polices for security risks, reporting findings to the Director of Operations
• Completes reports as required to FTA, NTD, and Authority
• Ensures that employees are aware and in compliance with the security program
• Responsible for security risk assessment
2.4 Passengers
Wave Transit service area encompasses the City of Wilmington in New Hanover County and serves a population
of over 200,000 in a two hundred square mile area. In fiscal year 2015 Wave Transit transported the following
numbers of passengers during regular service:
FIXED ROUTE BUS SERVICE
PARATRANSIT SERVICE
Average Weekday Ridership
5,166
Average Weekday Ridership
218
Average Saturday Ridership
2,136
Average Saturday Ridership
45
Average Sunday Ridership
1,051
Average Sunday Ridership
10
Total Ridership
1,476,773
Total Ridership
58,253
2.5 Transit Services /Operations
Wave Transit operates fifteen (15) fixed routes and nine (9) UNCW shuttle routes. The paratransit division uses
approximately twenty -four (24) vans to provide non medical transportation and ADA complementary services.
Wave currently provides two (2) Van Pools for commuting services and there are plans to expand another three
(3) vans next fiscal year. The fixed route and paratransit operating hours are Monday through Saturday 06:00 am
to 9:00 pm and Sunday 09:00 am to 6:00 pm.
For fixed route a combination of 35 foot low floor buses and 25 foot accessible shuttles are used to provide
service. The paratransit service is provided using wheelchair accessible vans and 20 foot accessible light transit
vehicles.
Wave transit operates out of two facilities. Forden Station is the main transfer station and administration building,
and the Ops Center houses the fixed route, paratransit, and maintenance operations.
2.6 Operating Environment
A. Operating Conditions
CFPTA Agenda Packet 01/28/2016 51
Traffic Environment: The traffic environment in the Wave Transit service area is greatly affected by seasonal
travel to the area. Traffic congestion along main roads is significant to cause service
delays.
Geography of Area: The service area is relatively flat throughout. Being a coastal area, there are a number
of bridges over main water areas and wetlands.
Weather: The weather during the hurricane season can be unpredicatable and affect service.
Wave Transit cooperates and performs hurricane drills with local emergency services.
Temperatures in July and August can reach to the high 90's and low 100's causing
difficulty with over heating vehicles. The area experiences minimal snow
accumalations during the winter.
B. Community Crime Rate
The City of Wilmington crime rates for the most recent ten years available is shown below. This information
is provided from the City of Wilmington's website and is available at
htt> 7: / /www.wilminLtonnc.Lyov /-Dolice debartment /office of the chief/crime scats /violent crime totals. This
information is included in this plan to coincide with cooperative efforts to reduce crime and police calls on
Wave Transit vehicles. Wave Transit has had one violent crime attempt reported outside a vehicle or facility
during the last twelve months.
M
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600
0
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2002 20240 2004 , 2005 240005 20002 2005 2009 20,20 21111 20112
Yew
CFPTA Agenda Packet 01/28/2016 52
2.7 Passenger, Vehicle, and System Safety Program
Wave Transit adopted a System Safety Program Plan (SSPP) in December 2011. The plan is reviewed annually
by the Director of Operations. The SSPP and this Security Plan together describe the methodology Wave Transit
uses throughout the life cycles of transit activities as they impact the safety and security of the operation.
2.8 Current Security Conditions
There are currently no significant security concerns at any of Wave Transit's two facilities. All facilities are
equipped with security alarms, a video monitoring system, and have controlled access to the interior of the
building.
2.9 Existing Security Capabilities and Practices
Wave Transit employs the following proactive security measures:
• Pre -trip walkthroughs
• Annual checking services
• Strict policy for fare evasion
• Increased lighting in passenger waiting shelters
• Modern radio communication system
• No vagrancy /loitering policy on buses or at stops & stations
• Employee awareness for security risks
The above measures are the primary responsibility of Wave Transit and its Contractor. Secondary responsibility
is with the Wilmington Police Department. Wave Transit coordinates training and information with the police
department. Below are some specific proactive steps to security awareness:
• Training : In addition to a comprehensive safety training program, employees are trained on dealing with
security related incidents. The training includes sessions on fare evasion, security awareness, preventive
measures in safety and security.
• Validating Fareboxes: Electronic validating fareboxes are installed in the entire fleet of fixed -route
vehicles. The fareboxes have greatly reduced fare evasion /shortchanges, providing audible signals for
fare collection. The paratransit vehicles are equipped with drop box style fareboxes.
• Vehicle Video Surveillance: Digital video surveillance units are installed in fixed -route and paratransit
vehicles.
• Building Video Surveillance: Digital video surveillance units are installed at the main transfer and
administration building, as well as the Ops Center.
• Building Access Control: The both Wave Transit buildings are equipped with building control access.
All security incidents are required to be reported to a supervisor immediately. Failure to do so exposes Wave
Transit to potential liability. The report allows Wave Transit to adequately track security breaches. The employee
is required to complete an Incident report so a permanent record of the incident is on file.
Any security breaches that involve any misdemeanors or felonies are required to be handled by the Director of
Operations and Wilmington Police Department. Any arrests or citations will be at the sole discretion of the police
and Wave Transit will provide assistance as directed.
CFPTA Agenda Packet 01/28/2016 53
Section 3: Management of the System Security Plan
3.1 Responsibility for System Security Plan
Wave Transit management recognizes the priority of system security and expects all employees, especially front-
line employees, to understand and adopt their security roles and responsibilities, increasing their own personal
safety and the safety of the ridership.
As directed by the Executive Director, the Director of Operations is responsible for setting and revising the transit
system's security policies.
3.2 Management of the Program
Under the authority of the Wave Transit's Board of Directors the Executive Director has the overall authority to
carry out Wave Transit's mission statement. The responsibilities of the Executive Director include the following
specific security activities:
• Being ultimately responsible for secure transit system operations
• Communicating security as a top priority to all employees
• Developing relations with outside organizations that contribute to the program
The System Security Plan is intended as a living document requiring annual updating. The responsibility and
authority for the preparation, implementation, and update of the System Security Plan will serve as a security
management tool to ensure that the goals and objectives are achieved.
The Director of Operations is responsible for the administration of the System Security Program including the
performance of specific system security tasks as well as monitoring and providing support for system security
activities throughout Wave Transit. The following are specific activities related to administering the Security
System Program
Listening to and taking appropriate action on all security concerns
Identifying potential security concerns in any part of the transit system's operation
Working to ensure that the Program is carried out on a daily basis
3.3 Division of Security Responsibilities
Wave Transit hopes to ensure that, if confronted with a security event or major emergency, personnel will respond
effectively, using good judgment, ensuring due diligence, and building on best practices identified in training.
This level of proficiency requires the establishment of mechanisms to be used by all personnel to identify security
threats and vulnerabilities associated with operations and to develop controls to eliminate or minimize them. All
employees, especially those working directly with passengers, are expected to support the Security Plan.
A. All Personnel
Wave Transit personnel must understand and adopt their specific roles and responsibilities, as identified in the
Security Plan, by increasing their own personal safety and the safety of the passengers, during normal operations
and in emergency conditions.
To ensure the success of the Security Plan, the following functions must be performed:
• Immediately reporting all suspicious activity, no matter how insignificant it may seem
• Immediately report all security incidents
• Using proper judgment when managing disruptive passengers and potentially volatile situations
• Participation in all training
• Becoming familiar with, and operating within, all security and emergency preparedness procedures for
the assigned work activity
• Accurately complete Incident Reports on security issues
CFPTA Agenda Packet 01/28/2016 54
B. Executive Director
Under the authority of the Wave Transit's Board of Directors, the Executive Director has the overall authority to
develop and execute the agency's Security Plan. In addition, the Executive Director is responsible for the
following specific activities:
• Ensuring that sufficient resources and attention are devoted to the Security Plan, including:
• Development and enforcement of safety and security regulations;
• Development emergency operating procedures to maximize transit system response effectiveness
and minimizing system interruptions during emergencies and security incidents;
• Provision of proper training and equipment to employees to allow an effective response to
security incidents and emergencies
• Development of an effective notification and reporting system for security incidents and emergencies
• Designating a Manager for the System Security Program and Pland
• Communicating security and emergency preparedness as top priorities to all employeesd
• Developing relations with outside organizations that contribute to the Security Plan, including local
public safety and emergency planning agencies
C. Director of Operations
To ensure coordinated development and implementation of the Security Plan, the Executive Director has
designated the Director of Operations as the Security Program Manager (SPM) for development and
implementation of the Security Plan. The SPM has been granted the authority to utilize Wave Transit resources to
develop the Security Program and Plan, to monitor its implementation, and to ensure attainment of security goals
and objectives.
The Director of Operations has the responsibility for overseeing the Security Program on a daily basis. The
Director of Operations will be the direct liaison with the agency's operators and dispatchers, regarding the
Program. In managing this Program, the SPM will:
• Be responsible for successfully administering the Security Plan and establishing, monitoring, and
reporting on the system's security and emergency preparedness objectives
• Review current agency safety, security and emergency policies, procedures, and plans, and identifying
needed improvements
• Develop and implement plans for addressing identified improvements
• Review new agency purchases to identify security related impacts
D. Managers
Managers are responsible for communicating the transit agency's security policies to supervisors, employees and
contractors. For this reason, managers must have full knowledge of all security rules and policies. Managers must
communicate those policies to Wave Transit operations supervisors and personnel in a manner that encourages
them to incorporate System Security Plan practices into their everyday work. The specific responsibilities of
managers include the following.
• Having full knowledge of all standard and emergency operating procedures.
• Provide adequate supervisor, dispatcher, mechanic, and operator training and continuing instruction for
all employees (and volunteers and contractors) regarding security and emergency preparedness
• Develop, publish, and enforce reasonable procedures pertinent to agency activities for security and
emergency preparedness
• Coordinate with local public safety agencies, local community emergency planning agencies, and local
human services agencies to address security and emergency preparedness; including participation in
formal meetings and committees
CFPTA Agenda Packet 01/28/2016 55
E. Supervisors
Supervisors are responsible for communicating the transit agency's security policies to all employees and
contractors. For this reason, supervisors must have full knowledge of all security rules and policies. Supervisors
must communicate those policies to Wave Transit operations personnel in a manner that encourages them to
incorporate System Security Plan practices into their everyday work. The specific responsibilities of supervisors
include the following.
• Having full knowledge of all standard and emergency operating procedures.
• Ensuring that employees make security and emergency preparedness aprimary concern when on the job.
• Cooperating fully with the Security Plan regarding any accident investigations as well as listening and
acting upon any security concerns raised.
• Immediately reporting security concerns to their manager.
In addition, when supporting response to an incident, supervisors are expected to:
• Provide leadership and direction to employees during security incidents
• Handle minor non - threatening rule violations
• Defuse minor arguments
• Determine when to call for assistance
• Respond to fare disputes and service complaints
• Respond to security related calls with police officers when required, rendering assistance with crowd
control, victim /witness information gathering, and general on -scene assistance
• Complete necessary security related reports
• Take photographs of damage and injuries
• Coordinate with all outside agencies at incident scenes
F. Operators
In addition to the general responsibilities identified in paragraph A (All Personnel) above, drivers are responsible
for exercising maximum care and good judgment in identifying and reporting suspicious activities, in managing
security incidents, and in responding to emergencies. Each driver will:
• Take charge of a security incident scene until the arrival of supervisory or emergency personnel
• Collect fares in accordance with agency policy
• Attempt to handle minor non - threatening rule violations
• Attempt to defuse minor arguments
• Determine when to call for assistance
• Maintain control of the vehicle
• Report all security incidents to agency dispatch
• Complete all necessary security related reports
G. Other Personnel
Other personnel who support Wave Transit also have responsibilities for the Security Plan.
Dispatchers are expected to:
• Receive calls for assistance
• Dispatch supervisors and emergency response personnel
• Coordinate with law enforcement and emergency medical service communications centers
• Notify supervisory and management staff of serious incidents
• Establish on -scene communication
• Complete any required security related reports
• Provide direction to on -scene personnel
CFPTA Agenda Packet 01/28/2016 56
Mechanics are expected to:
• Report vandalism
• Report threats and vulnerabilities of vehicle storage facilities
• Provide priority response to safety and security critical items such as lighting
• Set facility alarm systems when leaving facilities unattended
Human Resources personnel are responsible for:
• Ensuring all pre - employment screening processes are carried out effectively
• Notifying the Executive Director of employee disciplinary action that may result in the affected employee
becoming a risk to facilities, systems, passengers, employees or other assets
• Educating employees on employee ID policy and procedure
Director of Planning and Development is expected to:
• Maintain building alarm systems
• Address security concerns arising from building and grounds equipment damage or malfunction
F. Other Personnel
P — Primary Responsibility; S- Support Responsibility
CFPTA Agenda Packet 01/28/2016 57
Executive
Responsibility
Director
Directors
Managers
Conduct internal investigations of alleged theft of
S
P
S
property.
Conduct criminal background investigations of
S
S
P
employment applicants.
Conduct investigation of alleged insurance benefit
S
P
S
fraud.
Conduct investigation of alleged crimes on bus & rail
S
S
P
systems, and other properties.
Interact with area police jurisdictions within the
service area.
S
P
S
Monitor video surveillance systems
S
S
P
Conduct annual security audit
S
P
S
Conduct security assessments of properties.
S
P
S
Collect and analyze criminal incident data.
S
S
P
Conduct investigation of employee, policy,
S
S
P
procedure, or rules violations.
Conduct observations of operating employees for
S
S
P
compliance with SOPS.
Reviews and approves security training modules of
S
P
S
all security related training.
P — Primary Responsibility; S- Support Responsibility
CFPTA Agenda Packet 01/28/2016 57
Section 4: System Security Program Roles and Responsibilities
4.1 Planning
During the development and implementation of the System Security Program Plan, the Security Program Manager
(SPM) and will be responsible for security planning, including the following:
• Assisting in the overall development of the plan
• Writing specific portions of the plan
• Assisting in presenting the plan to the Board of Directors for review, modification, and approval
• Coordinating the establishment of security procedures with other department and division managers
• Coordinating the establishment of a security incident reporting system
• Coordinating the establishment of a system wide threat and vulnerability assessment program
After the establishment of the initial plan most planning activities will become ongoing and will involve the SPM,
Directors and Managers.
The SPM will be responsible for:
• Establishing and attending regularly scheduled security planning meetings
• Soliciting ideas from all staff on improved security
• Reviewing and updating the System Security Program Plan
• Presenting modifications to the plan for review and submission to Executive Director for approval
• Assessing agency readiness for response to security threats
Directors will be responsible for:
• Reviewing new security activities to determine how they impact the areas of responsibility
• Developing implementation strategies for security- related activities to be assigned
• Planning fiscal requirements of security activities
• Sharing their security concerns and ideas for improvement
• Considering security aspects in all equipment acquisitions
Managers:
• Soliciting ideas from all staff on improved security
• Determining training needs for security related activities
• Determining equipment requirements for all security activities
All employees regardless of assignment will be expected to:
• Consider the security of transit passengers, vehicles, and facilities in the performance of all of their
regular activities
• Offer suggestions for the improved security of transit passengers, vehicles, and facilities to their
supervisor
4.2 Proactive Measures
Proactive security measures are those sub - programs or activities undertaken to prevent breaches in security or to
minimize threats of vulnerabilities. Proactive measures have been implemented in the following areas, and are
carried out as regular, on -going activities.
Fare Evasion: Regularly review fare collections and reports on fare receipts.
Supervisor Presence: To minimize transit incidents, and to promote a sense of security among high boarding
stops and transfer stations, vehicles are regularly boarded by supervisors.
CFPTA Agenda Packet 01/28/2016 58
Incidents Onboard Transit Vehicles: Video surveillance cameras are installed in vehicles. The camera system
has a significant deterrent effect.
4.3 Training
A. System Wide Training of All Employees
All Wave Transit employees, regardless of assignment, receive training by their supervisor on threats against
employees, and when to request police assistance. All employees are also provided access to all security plans
that provide guidelines for employees to deal with commonly encountered situations, and provide information
to allow employees to understand security incidents.
B. Operations Department Employees
All operators are provided one week classroom instruction, a portion of which deals with security related
training. Below is an outline of the security training provided:
• General Rules: General employee rules, includes instruction on duty to report any safety or security
hazards observed by employees.
• Personal Appearance and Conduct: Covers uniforms, grooming, and employee conduct.
• Customer Service: Covers expectations of employees when dealing with the public, includes instruction
on how and to whom to report security incidents, and types of individuals or situations to be aware of and
report.
• Traffic Laws: Covers applicable traffic related laws and regulations, drug and alcohol testing, and drug
and alcohol use restrictions.
• Pre -trip inspection: Provides instruction in thorough inspection of a bus prior to placing the bus in service.
• Maintenance and Operations: Provides instruction on bus operating procedures and identifying common
mechanical problems; also stresses the importance of graffiti removal, and identification, notification to
security personnel, and documentation of gang related graffiti.
• Fare Handling: Covers fare collection procedures and provides instruction in dealing with fare disputes,
conflict resolution, and notification of security personnel.
• Americans with Disabilities Act Requirements: Provides instruction in complying with ADA
requirements and providing service to disabled patrons.
• Emergency Procedures: Provides instruction in silent alarm procedures, involvement in traffic accidents,
and medical emergencies involving passengers.
• Safety Procedures: Provides instruction in dealing with traffic safety issues, procedures for drivers to
follow if involved in a traffic accident, fire, chemical or biological spill procedures, and procedures for
dealing with suspicious objects or suspected explosive devices.
• Radio Procedures: Provides instruction on radio procedure for both routine and emergency radio traffic.
Includes instruction on reporting crimes, suspicious acts, and potentially hazardous situations.
• Report Writing: Provides instruction on report writing, and reporting requirements.
4.4 Day -to -Day Activities
A. Director of Operations
• Implementation of employee identification badge and access control program
• Facility access controls
• Observation of facilities with video surveillance cameras.
B. Dispatch Offices
• Provide direct supervision during system operations
• Receive radio calls for assistance from employees
• Dispatch supervisory and managerial personnel of serious /significant incidents involving transit
personnel, vehicles, property or equipment
• Complete any required security- related reports
• Provide verbal direction and assistance to on -scene personnel
C. Operations Managers
CFPTA Agenda Packet 01/28/2016 59
• Provide leadership and direction during security incidents
• Handle rule violations
• Make decisions regarding the continuation of operations
• Coordinate with transportation dispatchers and with outside agencies at incident scenes which disrupt bus
service
• Incident reporting and emergency response
D. Operators
• Report all security incidents to dispatch
• Manage accidents scenes as to minimize the possibility of any injuries to employees, passengers or
citizens, and to minimize the possibility of damage to any equipment or property.
• Attempt to handle minor, non - threatening rule violations
• Maintain safe control of the vehicles
• Complete all necessary security related reports
E. Fare Counters
• Utilize proper money handling techniques to assure the security of monies collected
• Identify security issues relative to revenue collection and processing
• Report all security incidents
• Complete all security and fare related paperwork
Section 5: Threat and Vulnerability Identification, Assessment and
Resolution
Threats and vulnerabilities to a transit system cover a wide array of events, virtually none of which can be totally
eliminated while still operating the system. Since no system can be rendered totally secure, once threats and
vulnerabilities are identified, their impact on the total system must be assessed to determine whether to accept the
risk of a particular danger, and the extent to which corrective measures can eliminate or reduce its severity.
Thus, security is a process of risk management, identifying major threats and considering how vulnerable the
system might be to the actions they threaten.
Threats are defined as specific activities that will damage the system, its facilities, or it patrons. Threats include
any actions which detract from overall security. They range from the extreme of terrorist- initiated bombs or
hostage - taking to more common events such as theft of services, pickpocketing, graffiti and vandalism. Those
responsible for identifying and assessing threats and vulnerabilities must not only measure the degree of potential
danger, but the chances of that particular danger actually occurring.
Vulnerability is defined as the susceptibility of the system to a particular type of security hazard. Vulnerabilities
can be corrected, but risk analysis must be undertaken to determine which vulnerabilities take the highest priority.
For example, because transit systems cover a vast amount of territory that is often unfenced or otherwise
unprotected, equipment is vulnerable to terrorist attack.
5.1 Threats and Vulnerability Identification
Threat and vulnerability identification includes the following methods:
• Adoption of policies and procedures
• Assignment of threat and vulnerability identification to personnel
• Methodology for data collection
Preparedness is a measure of the ability to withstand or respond to threats and vulnerabilities as they may occur.
Due to the nature of the security function, few threats can be totally eliminated, thus preparedness to respond to
breaches when they occur is a major component of a System Security Plan. Wave Transit uses a three- pronged
approach for measuring preparedness. The three areas are designed to mesh closely with the threat and
CFPTA Agenda Packet 01/28/2016 60
vulnerability identification process, providing an opportunity to improve identification, outline training needs, and
reinforce the importance of security throughout the system.
Equipment Preparedness: All security (and safety) equipment will be required to be inspected at regular
intervals. This includes inspection on preventive maintenance (PM) checks and defined inspections on
equipment that is not physically located on a vehicle. Any equipment found to be non - functional at the
time of inspection will be reported to one's supervisor immediately. Repairs to the equipment will
receive the highest priority and the vehicle will not be placed into revenue service until all security repairs
are complete and the equipment is functioning as designed. Parts for security equipment will receive
priority inventory status.
Employee Proficiency: Security equipment will be used and maintained only by employees who have
received the proper training. Initial training will be done by qualified representatives of the manufacturer
of the security device. Ongoing training will be provided by supervisory staff who have been trained by
manufacturer representatives.
System Effectiveness: The Security Program will be evaluated on an annual basis. This evaluation will
include plan updates, training evaluation, security devices and measures and additional initiatives that
could be undertaken to increase the effectiveness of the program.
5.2 Threats and Vulnerability Assessment
Data collection is an important tool in the System Security Plan. Reliable data will enable Wave Transit to reduce
security risks through proper planning. Internal data that is relevant to the plan include:
• Incident reports
• Passenger complaints
• Police reports
• Employee records and complaints
• Personnel records
• Physical plans of all facilities
Many external events will raise the vulnerability for Wave transit that will require temporary responses. Such
external events include changes in traffic patterns leading to major route restructures, political rallies, events in
the service area, and terrorism or political unrest in other areas.
The above should include enough information to ensure that any follow -up steps to the incident can be
implemented with the information gathered at the time of the incident. Follow -up procedures ensure that the
incident is investigated and reviewed by enough personnel to prevent reoccurrence. Data from the above incidents
will be reviewed annually during the plan update to make the necessary changes to the plan.
The flowchart below outlines the flow of security incidents through Wave Transit.
Incident
Report
Staff review and Action as Required
Police Assistance as Needed
Preventative Measures
Implemented
CFPTA Agenda Packet 01/28/2016 61
Since Wave Transit is a public entity, many reports fall under the Open Record Act provisions of both Federal
and State ordinances and codes. Conceivably, this System Security Plan could actually be used by a person or
group against Wave Transit. For this reason, this document will be distributed on a limited basis to entities which
may fall under open record guidelines. Organizations with an interest in the security of Wave Transit which may
fall under these guidelines will be made aware that the Plan exists and can review the Plan at Wave Transit.
The relevant portions of the Plan will be distributed to all direct employees of the system who will be expected to
familiarize themselves with the Plan and Program. Employees of contractors to Wave Transit will be given the
Plan or certain excerpts of the plan as deemed appropriate.
The following Threat Conditions each represent an increasing risk of terrorist attacks and the preventative
measures for each risk category.
A. Low Condition (Green)
This condition is declared when there is a low risk of terrorist attacks. Wave Transit will respond to a Green
threat level by implementing the following protective measures:
• Refining and exercising as appropriate preplanned Protective Measures
• Ensuring personnel receive proper training on the Homeland Security Advisory System and specific
preplanned department or agency Protective Measures
• Institutionalizing a process to assure that all facilities and regulated sectors are regularly assessed for
vulnerabilities to terrorist attacks, and all reasonable measures are taken to mitigate these vulnerabilities.
B. Guarded Condition (Blue)
This condition is declared when there is a general risk of terrorist attacks. In addition to the Protective
Measures taken in the previous Threat Condition, Wave Transit will respond to a Blue threat level by
implementing the following protective measures:
• Checking communications with designated emergency response or command locations
• Reviewing and updating emergency response procedures
• Providing the public with any information that would strengthen its ability to act appropriately
C. Elevated Condition (Yellow)
An Elevated Condition is declared when there is a significant risk of terrorist attacks. In addition to the
Protective Measures taken in the previous Threat Conditions, Wave Transit will respond to a Yellow threat
level by implementing the following protective measures:
• Increasing surveillance of critical locations
• Coordinating emergency plans as appropriate with nearby jurisdictions
• Assessing whether the precise characteristics of the threat require the further refinement of preplanned
Protective Measures
• Implementing, as appropriate, contingency and emergency response plans
D. High Condition (Orange)
A High Condition is declared when there is a high risk of terrorist attacks. In addition to the Protective
Measures taken in the previous Threat Conditions, Wave Transit will respond to an Orange threat level by
implementing the following protective measures:
• Coordinating necessary security efforts with Federal, State, and local law enforcement agencies
• Taking additional precautions at public events and possibly considering alternative venues or even
cancellation
• Preparing to execute contingency procedures, such as moving to an alternate site or dispersing their
workforce
• Restricting threatened facility access to essential personnel only
CFPTA Agenda Packet 01/28/2016 62
E. Severe Condition (Red)
A Severe Condition reflects a severe risk of terrorist attacks. Under most circumstances, the Protective
Measures for a Severe Condition are not intended to be sustained for substantial periods of time. Response to
the threat level will be in accordance with DHS and DOT guidelines. In addition to the Protective Measures in
the previous Threat Conditions, Wave Transit will respond to a Red threat level by implementing the
following protective measures:
• Increasing or redirecting personnel to address critical emergency needs
• Assigning emergency response personnel and pre - positioning and mobilizing specially trained teams or
resources
• Monitoring, redirecting, or constraining transportation systems
• Closing public and government facilities
5.3 Threats and Vulnerability Resolution
Security threats and vulnerabilities are addressed to minimize crime exposure on the system. Threat and
vulnerability resolution includes:
• Mechanisms for activating certain types of emergency response including those authorized to respond,
what levels of response are possible, and the duration the emergency response is capable of being
maintained
• Methods to be employed to investigate security breaches including circumstances that led to the breach
• In depth research of threats and vulnerabilities to determine if the risk(s) can be managed and to provide
criteria for long -term improvements in identified security risk areas
Security issues are typically resolved through the following process.
• An awareness program is developed and implemented to alert employees and patrons of a potential
security risk on the system
• New procedures are developed or existing procedures are revised to minimize the interim impact of the
potential hazard
• If physical enhancements are essential to mitigate the risk, the facility or system component may be
redesigned, modified, or replaced to improve system security
This process provides a temporary /short term solution for the potential risk until permanent, remediation measures
can be implemented. An important aspect of the resolution process is a subsequent follow -up assessment to
validate the effectiveness of the corrective action(s), and possible alternative/ supplemental measures, if
necessary.
Section 6: Implementation Goals and Objectives
6.1 Implementation Schedule
Implementation and evaluation of the Plan are critical to its success. If the Plan is incomplete, flawed, or not
supported, the security- planning efforts may be futile. Having completed the Program Plan, Wave Transit will
ensure that the Program is effective in eliminating, mitigating, and handling security threats and breaches.
The goal of the Plan is to reduce the risk from intentional threats to the employees or passengers of Wave Transit.
To achieve this goal, the System Security Plan will be reviewed annually and any updates and changes will be
approved by the Board of Directors.
DATE
TASK
Annually in May
Conduct Internal Threat and Vulnerability Assessment
Annually No Later than June
Review and update when necessary based on Threat and Vulnerability Assessment
Annually in July
Communicate and distribute changes to the plan to employees
CFPTA Agenda Packet 01/28/2016 63
6.2 Evaluation
The Plan will be audited both internally and externally. Internal audits will be accomplished through the following
methods:
• Management review
• Success of the Plan
• Staff comments
• Employee comments
External audits will be conducted during regularly scheduled State and Federal system and triennial reviews.
Section 7: Modification of the System Security Program Plan
7.1 Initiation
Beginning in April of each year, the Director of Operations will initiate a review of the System Security Plan.
Input for the revisions shall be gathered and procedures for updating the plan and responsible personnel shall be
identified.
7.2 Review Process
The below steps and frequencies will be used to review the System Security Plan.
• Review Incident Reports — Monthly
• Review customer and employee complaints concerning security — Quarterly
• Solicit employee input for updates or procedures regarding the plan — Annually
• Conduct management review — Annually
7.2 Implement Modifications
Based on results of the review process, the plan will be updated as required. The Board of Directors will approve
the System Security Plan prior to dissemination. Once approved, all employees will receive a revised copy of the
relevant portions for their position and supervisors will conduct training on the updates.
CFPTA Agenda Packet 01/28/2016 64
Total Passengers
180,000
160,000
140,000
120,000
100,000
a 80,000
60,000
40,000
20,000
0
,VCR, Monthly Passenger %mmary
December 2015
2015/2016 98,499 117,851 152,252 146,292 134,044 107,621
Change 4.35% -8.20% -7.44% - 13.13% 0.09% -4.13%
CFPTA Agenda Packet 01/28/2016 65
Seahawk Shuttle
Paratransit
70,000
120,000
7,000
60,000
100,000
6,000
50,000
80,000
40,000
4,000
a 30,000
60,000
20,000
3,000
a 40,000
10,000
2,000
20,000
0
1,000
Jul
Aug
Sep
Oct
Nov
Dec
■2014/2015
453
22,163
58,235
53,204
41,974
15,037
■2014/2015
®2015/2016
421
23,981
55,395
47,154
43,229
12,352
Change
-7.06%
8.20%
-4.88%
- 11.37%
2.99%
- 17.86%
Oct
Change
4.42%
CFPTA Agenda Packet 01/28/2016 65
Fixed Route
Paratransit
120,000
7,000
100,000
6,000
80,000
4,000
60,000
3,000
a 40,000
2,000
20,000
1,000
Dec
Jul
Aug
Sep
Oct
Nov
■2014/2015
88,831
101,346
101,217
109,968
87,566
92,740
®2015/2016
92,754
89,163
91,837
93,414
86,068
90,441
Oct
Change
4.42%
02%
27%
05%
71%
-2.48%
5,222
4,384
4,481
CFPTA Agenda Packet 01/28/2016 65
Paratransit
7,000
6,000
5,000
4,000
3,000
2,000
1,000
0
Jul
Aug
Sep
Oct
Nov
Dec
■2014/2015
5,106
4,869
5,044
5,222
4,384
4,481
02015/2016
5,324
4,707
5,020
5,724
4,747
4,828
Change
4.27%
-3.33%
-0.48%
9.61%
8.28%
7.74%
CFPTA Agenda Packet 01/28/2016 65
Passengers by Route December 2015
Fixed Route
No.
Name
Passengers
Transfers
101
Princess Place
15,390
2,205
103
Oleander East
6,594
1,124
104
Northeast
5,032
821
105
Medical Center
7,117
872
106
Shipyard Blvd
5,957
814
107
College Road
2,262
236
108
Market Street
6,683
889
201
Carolina Beach Road
10,104
1,181
202
Oleander West
6,915
676
203
Trolley
3,642
204
Brunswick Connector
2,469
316
205
Longleaf Park
7,243
680
207
North
3,046
381
209
Independence
7,148
674
301
Pleasure Island
839
TOTAL
90,441
10,869
UNCW
701
Blue
1,029
712
Teal
1,108
702
Green
1,309
703
Red
1,373
704
Yellow
1,919
711
Yellow Express
1,694
705
Loop
531
707
Red Express
2,839
709
Loop Express
550
UNCW Total
12,352
Para - Transit Services
ADA Passengers
1,781
Non -ADA Passengers
3,047
Para - Transit Total
4,828
TOTAL PASSENGERS
107,621
CFPTA Agenda Packet 01/28/2016 66
Total Bus Passenger Trips
86,799
89,016
- 2.49%
520,008
553,614 -6.07%
Total Trolley Passenger Trips
3,642
3,724
- 2.20%
23,669
28,054 - 15.63%
Total UNOV Passenger Trips
12,352
15,037
- 17.86%
182,532
191,066 -4.47%
Taal %xed Fbute Passenger Trips
102,793,
167,777
- 4.62 ° /
726209
772,734 - 6;62'x/'
Average Weekday Passenger Trips
4,076
4,328
- 5.82%
Average Saturday Passenger Trips
2,196
2,107
4.21 %
Average SAnday Passenger Trips
1,084
1,084
0.00%
Operating Statistics- Fixed Route
Total Fbvenue Miles
99,003
98,311
0.70%
615,046
617,654 -0.42%
Total Fbvenue Hours
6,858
6,799
0.87%
43,652
43,665 -0.03%
Accidents Non Preventable
1
2
- 50.00%
9
13 - 30.77%
Accidents Preventable
0
1
- 100.00%
1
10 - 90.00%
Passenger Trips/ Fbvenue M ile
1.04
1.10
- 5.29%
1.18
1.25 -5.62%
Passenger Trips/ Fbvenue Hour
14.99
15.85
- 5.44%
16.64
17.70 -5.99%
Operator Overtime
2.45%
0.03%
8066.67%
Farebox Fbvenue and Pass Sales
$ 75,355
$ 84,160
- 10.46%
$485,044
$504,746 -3.90%
Average Fare per Bus Passenger
$ 0.83
$ 0.91
- 8.19%
$0.891
$0.87 2.81%
PARATR I+ISIT
MONTHLY
Rscal
Year to Date
Ridership Statistics
Current
This M oath
Last Year
%Change
Current
Prier %Change
Total ADA Passenger Trips
1,781
1,347
32.22%
10,540
8,385 25.70%
Total Non ADA Passenger Trips
3,047
3,134
- 2.78%
21,361
20,721 3.09%
Total Paratrans t Passenger Trips
4,628
4,481
7.74°/
31,9 01
29,106 9.60%
Average Weekday Passenger Trips
204
194
5.26%
Average Saturday Passenger Trips
57
41
39.634
Average SAnday Passenger Trips
26
10
162.500/
Operating Statistics - Paratransit
Total Fbvenue Miles
36,494
30,711
18.83%
263,704
214,996 22.66%
Total Fbvenue Hours
2,476
1,614
53.41%
17,310
11,213 54.37%
Accidents Non Preventable
1
2
- 50.00%
4
2 100.00%
Accidents Preventable
1
0
100.00%
5
4 25.00%
Passenger Trips/ Fbvenue M ile
0.13
0.15
- 9.33%
0.12
0.14 - 10.64%
Passenger Trips/ Fbvenue Hour
1.95
2.78
- 29.77%
1.84
2.60 - 29.00%
Operator Overtime
3.33%
1.28%
160.16%
WavePbol
Passengers
307
262
17.18%
2,500
1,818 37.51%
Fbvenue Miles
3,069
5,896
- 47.95%
23,609
38,101 - 38.04%
Fbvenue Hours
59
104
- 43.38%
529
688 -23.11%
Special Services
Greyhound Ticket Fbvenue
$780
$5,896
- 86.77%
$15,540
$17,902 - 13.19%
Amtrak Passengers
292
265
10.19%
1,724
1,328 29.82%
Horizon Fbvenue
$1,287
$1,098
17.21 %
$4,657
$5,796 - 19.65%
CFPTA Agenda Packet 01/28/2016 67
Date: 7/l/2015-12/31/2015
Budget Soenario : 2016 (2) (Board Adopted Original)
/i r
Operating revenues
Farebox revenues
622,690
634,000
(11,310)
49%
1,268,000
Passes
88,743
110,000
(21,257)
40%
220,000
Contracted services
Fixed Route
177,676
210,000
(32,324)
42%
420,000
Para - Transit
346.827
331.000
15,827
52%
662.000
Total: Operating revenues
1,235,936
1,285,000
(49,064)
48%
2,570,000
Nonoperating revenues
Subsidies
Federal grants
1,852,604
1,773,579
79,026
52%
3,547,157
State grants
15,437
377,475
(362,038)
2%
754,950
Subsidy from primary government
City of Wilmington
1,285,000
642,500
642,500
100%
1,285,000
New Hanover County
275,000
137,500
137,500
100%
275,000
Subsidy from other governments
101,250
50,188
51,063
101%
100,375
Local Government Pledged to Capital
-
(7,500)
7,500
0%
(15,000)
Other Income
70,746
55,500
15,246
64%
111,000
Total: Subsidies
3,600,037
3,029,241
570,796
59%
6,058,482
Total: Revenues and Subsidies
4.835.973
4.314.241
521.732
56%
8.628.482
Operating expenses
Salaries and wages
Fixed Route
1,607,594
1,634,102
26,508
49%
3,268,204
Para - Transit
303,853
327,633
23,780
46%
655,266
Taxes and benefits
Taxes
139,968
151,839
11,871
46%
303,677
Benefits
473,874
520,539
46,665
46%
1,041,078
Fuels and lubricants
308,771
473,700
164,929
33%
947,400
Maintenance
522,415
269,312
(253,103)
97%
538,624
Tires
56,577
67,750
11,173
42%
135,500
Communications & Utilities
70,976
79,700
8,724
45%
159,400
Professional services
219,604
211,410
(8,194)
52%
422,820
Other services
87,101
50,563
(36,538)
86%
101,126
Insurance
Liability & Property
238,067
173,250
(64,817)
69%
346,500
Auto
186,104
144,000
(42,104)
65%
288,000
Worker Comp
114,156
105,500
(8,656)
54%
211,000
Office supplies and expenses
18,840
21,100
2,260
45%
42,200
Marketing
4,238
24,850
20,612
9%
49,700
Other expenses
72,644
58,994
(13,651)
62%
117,987
Total: Operating expenses
4.424.782
4.314.241
(110.541)
51%
8.628.482
Net Results
411,191
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 01/28/2016 68
WVO Cape Fear Public Transportation Authority
�0, Box l2630° Wilmington, NC28405~(9l0) 343-0l06~Vq0543-83l7 fox °wmvetramU.com
December 17, 2015
Mark D.Ahrendsem
Director -Transportation Department
City mfDurham
101 City Hall Plaza
Durham, NC 27701
Dear Mark:
<]m behalf uf the Cape Fear Pub|ic Transportation 4uthority | would like to thank you and the City nf
Durham for aU|oming Wave Transit Ln purchase two surplus vehicles. The vehicles will he beneficial toour
ability to provide transit service in Southeastern North Carolina. We are especially appreciative mf the efforts
of Pierre ()sei-(]vvusu. We realize that our request conflicted with efforts by the City 0o sell the vehicles at
auction and Pierre was instrumental in assisting us with our efforts to acquire these important assets. He is an
excellent ambassador for the City ofDurham.
Please pass along our appreciation tu your City Manager, Mayor, Council and M�r.Qsei-Ovvusu. If there
is ever possibility for the Authority to reciprocate, please do not hesitate to contact our Executive Director.
Thank you and the City of Durham again for your willingness to assist Wave Transit in our efforts to provide
public transportation in the region.
Re rds,
Chairman
nu Albert Eby, Executive Director, Cape Fear Public Transportation Authority
Cape Fear Public Transportation Authority Members
CFPTA Agenda Packet 01 /28/2016 69
Cape Fear Public Transportation Authority
(A Component Unit of the City of Wilmington)
Financial and Compliance Reports
Year Ended June 30, 2015
Contents
Financial Section
Independent Auditor's Report 1 — 3
Management's Discussion and Analysis (Unaudited) 4-8
Basic Financial Statements
Statement of Net Position 9
Statement of Revenue, Expenses and Changes in Net Position 10
Statement of Cash Flows 11
Notes to Basic Financial Statements 12-24
Required Supplemental Financial Data: 25
Schedule of Proportionate Share of Net Pension Asset for Local Government
Employees' Retirement System 26
Schedule of Contributions to Local Government Employees'
Retirement System 27
Supplementary Financial Information:
Schedule of Revenue and Expenditures, Budget and Actual, Non -GAAP,
Modified Accrual Basis, Operating Fund 28-29
Schedule of Revenue and Expenditures, Budget and Actual, Non -GAAP,
Modified Accrual Basis, Capital Project Fund 30
Internal Control and Compliance Section
Independent Auditor's Report 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
Compliance for Each 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 the 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 Plan
Summary Schedule of Prior Audit Findings
Schedule of Expenditures of Federal and State Awards
Notes to the Schedule of Expenditures of Federal and State Awards
31-32
33-34
35-36
37-38
39
40
41
42
FINANCIAL SECTION
• Report of Independent Certified Public Accountants
• Management's Discussion and Analysis
• Basic Financial Statements
• Notes to Basic Financial Statements
• Supplementary Financial Information
(This Page Was Intentionally Left Blank)
Independent Auditor's Report
To the Honorable Chairman and
Members of the Board of Directors
Cape Fear Public Transportation Authority
Wilmington, North Carolina
it, 1Z 'il !�
11111b'0 '
RSM US LL
Report on the Financial Statements
We have audited the accompanying financial statements of Cape Fear Public Transportation Authority
and its related Foundation (the Authority), a component unit of the City of Wilmington, North Carolina, as
of and for the year ended June 30, 2015, and the related notes to the financial statements, which
collectively comprise the Authority's basic financial statements as listed in the table of contents.
Management's Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in
accordance with accounting principles generally accepted in the United States of America; this includes
the design, implementation, and maintenance of internal control relevant to the preparation and fair
presentation of financial statements that are free from material misstatement, whether due to fraud or
error.
Auditor's Responsibility
Our responsibility is to express opinions on these financial statements based on our audit. We conducted
our audit in accordance with auditing standards generally accepted in the United States of America and
the standards applicable to financial audits contained in Government Auditing Standards, issued by the
Comptroller General of the United States. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in
the financial statements. The procedures selected depend on the auditor's judgment, including the
assessment of the risks of material misstatement of the financial statements, whether due to fraud or
error. In making those risk assessments, the auditor considers internal control relevant to the entity's
preparation and fair presentation of the financial statements in order to design audit procedures that are
appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of
the entity's internal control. Accordingly, we express no such opinion. An audit also includes evaluating
the appropriateness of accounting policies used and the reasonableness of significant accounting
estimates made by management, as well as evaluating the overall presentation of the financial
statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for
our audit opinions.
.ti,,li POWER 0F B1PING Ui'DERS gl'00D
AUIadI.� ..i.AX I O)Na IDA''ING
1
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Opinions
In our opinion, the financial statements referred to above present fairly, in all material respects, the
financial position of Cape Fear Public Transportation Authority and its related Foundation as of June 30,
2015, and the changes in their financial position and their cash flows for the year then ended in
accordance with accounting principles generally accepted in the United States of America.
Emphasis of Matter
As discussed in Note 12 to the financial statements, in the year ending June 30, 2015, the Authority
adopted new accounting guidance Governmental Accounting Standards Board Statement Number 68,
Accounting and Financial Reporting for Pensions — An amendment of GASB Statement No. 27, and
Governmental Accounting Standards Board Statement Number 71, Pensions Transition for Contributions
made Subsequent to the Measurement Date — an amendment of GASB No. 68. Our opinion is not
modified with respect to this matter.
Other Matters
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the Management's
Discussion and Analysis, on pages 4 — 8, and the Local Government Employees' Retirement System's
Schedules of the Proportionate Share of the Net Pension Asset and Contributions, on pages 26 and 27,
respectively, be presented to supplement the basic financial statements. Such information, although not a
part of the basic financial statements, is required by the Governmental Accounting Standards Board who
considers it to be an essential part of financial reporting for placing the basic financial statements in an
appropriate operational, economic, or historical context. We have applied certain limited procedures to
the required supplementary information in accordance with auditing standards generally accepted in the
United States of America, which consisted of inquiries of management about the methods of preparing
the information and comparing the information for consistency with management's responses to our
inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic
financial statements. We do not express an opinion or provide any assurance on the information because
the limited procedures do not provide us with sufficient evidence to express an opinion or provide any
assurance.
Other Information
Our audit was conducted for the purpose of forming an opinion on the financial statements that
collectively comprise the Authority's basic financial statements. The accompanying schedules in the
supplementary financial information in the financial section, and the schedule of expenditures of federal
and state awards as required by U. S. Office of Management and Budget Circular A -133, Audits of States,
Local Governments, and Non - Profit Organizations and the State Single Audit Implementation Act, in the
internal control and compliance section, are presented for purposes of additional analysis and are not a
required part of the basic financial statements. Such information is the responsibility of management and
was derived from and relates directly to the underlying accounting and other records used to prepare the
basic financial statements. Such information has been subjected to the auditing procedures applied in the
audit of the basic financial statements and certain additional procedures, including comparing and
reconciling such information directly to the underlying accounting and other records used to prepare the
basic financial statements or to the basic financial statements themselves, and other additional
procedures in accordance with auditing standards generally accepted in the United States of America. In
our opinion, the information is fairly stated, in all material respects, in relation to the basic financial
statements as a whole.
2
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated December 11,
2015, on our consideration of the Authority's internal control over financial reporting and on our tests of its
compliance with certain provisions of laws, regulations, contracts, and grant agreements and other
matters. The purpose of that report is to describe the scope of our testing of internal control over financial
reporting and compliance and the results of that testing, and not to provide an opinion on internal control
over financial reporting or on compliance. That report is an integral part of an audit performed in
accordance with Government Auditing Standards in considering the Authority's internal control over
financial reporting and compliance.
Wilmington, North Carolina
December 11, 2015
RSM US LLP, an Iowa limited liability partnership, is doing business as McGladrey LLP in the state
of North Carolina and is a CPA firm registered with the North Carolina State Board of Certified
Public Accountants under the name McGladrey LLP. Rules permitting the use of RSM US LLP
have been published in the North Carolina Register and are pending final approval.
3
MANAGEMENT'S DISCUSSION
AND ANALYSIS
(This Page Was Intentionally Left Blank)
Cape Fear Public Transportation Authority
Management's Discussion and Analysis (Unaudited)
June 30, 2015
As management of Cape Fear Public Transportation Authority and its related Foundation (the Authority),
we offer readers of the Authority's financial statements this narrative overview and analysis of the
financial activities of the Authority for the fiscal year ended June 30, 2015.
Authority Profile
Rapid sprawl and rising traffic congestion throughout the region led the City of Wilmington and New
Hanover County to enter into an historic agreement in June 2003. By joint resolution, the City of
Wilmington and New Hanover County merged the Wilmington Transit Authority and New Hanover
Transportation Services to form the Cape Fear Public Transportation Authority. Fixed routes are served
by a modern transfer facility, Forden Station, which is centrally located within the service area. A new
maintenance and operations facility in the shadow of downtown Wilmington was completed and opened
during the fiscal year. A downtown multimodal transportation center is also in development.
The Authority is overseen by an eleven member volunteer Board of Directors appointed by the
Wilmington City Council and New Hanover County Board of Commissioners. Elected officials from the
City of Wilmington and New Hanover County serve on the Board. The Board is governed by an Executive
Committee comprised of a Chairman, Vice Chairman and Secretary elected by Authority members.
The Authority has broadened its scope of services significantly during its eleven years to include: service
to Brunswick County; service to Pleasure Island; a vanpool program; the nonprofit Making Waves
Foundation; brokered elderly and disabled transportation; a vanpool program; and other initiatives.
During the fiscal year, the planning boundary of the Wilmington Urban Area Metropolitan Planning
Organization (WMPO) was declared a Transportation Management Area (TMA) by the Census Bureau.
This designation was the result of the area exceeding 200,000 in population. The change resulted in the
Authority becoming a Direct Recipient of federal funding. Although the designation led to a slight increase
in funding, FTA requirements changed dramatically. These changes require the Authority to comply with
more stringent FTA reporting and compliance requirements.
Financial Highlights
• The assets and deferred outflows of the Authority exceeded its liabilities and deferred inflows at
the close of the fiscal year by $21,229,192 (net position).
• The Authority's total net position increased by $6,863,657 during the fiscal year, excluding the
impact of the restatement of net position discussed in Note 12.
• The Authority had an operating loss of $6,610,519
• Capital asset additions, including construction in process, totaled $7,092,289 during the fiscal
year.
• The Authority had no long -term debt outstanding as of June 30, 2015.
• During the fiscal year, the City of Wilmington and New Hanover County established a fund
balance requirement that will allow the Authority the ability to meet its financial obligations in a
more efficient and economical manner.
Overview of the Financial Statements
This discussion and analysis are intended to serve as an introduction to Cape Fear Public Transportation
Authority's basic financial statements. The financial statements of the Authority consist of three
components. They are as follows:
• Management's Discussion and Analysis
• Basic Financial Statements
• Notes to the Basic Financial Statements
Cape Fear Public Transportation Authority
Management's Discussion and Analysis (Unaudited)
June 30, 2015
The Basic Financial Statements are prepared using the accrual basis of accounting. They consist of three
statements, as required for entities engaged only in business -type activities.
The first statement is the statement of net position whereby net position is determined by the difference
between assets plus any deferred outflows less liabilities and any deferred inflows. Assets and liabilities
are classified between current and long -term. This statement provides a summary of the Authority's
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 changes in net position. This statement is
used in evaluating whether the Authority has recovered all of its costs through revenues. Its information is
used in determining creditworthiness.
The final required statement is the statement of cash flows. This statement reports cash inflows and
outflows in the following categories: operating, investing, capital and related financing and noncapital
financing activities. Based on this data, the user can determine the sources of cash, the uses of cash, and
the change in cash.
The notes to the basic financial statements provide more detailed information and should be read in
conjunction with the statements. After the notes, supplementary financial information is provided to show
additional details about the Authority's budgetary information.
Financial Analysis
Net position may serve over time as one useful indicator of a government's fiscal health. Net investment
in capital assets (net of related liabilities) totaled $21,058,289 which comprises vehicles, equipment,
buildings, other improvements, construction in progress, and land. This is the main concentration of the
Authority's net position as of June 30, 2015. The Authority also has net position restricted for the
purchase of buses in addition to unrestricted net position, which has no restrictions on its use.
Cape Fear Public Transportation Authority Condensed Statement of Net Position
Figure 1
Current assets
Restricted net pension asset
Capital assets, net
Total assets
Deferred Outflows of Resources (Note 7)
Current liabilities
Deferred Inflows of Resources (Note 7)
Net position:
Invested in capital assets
Restricted
Unrestricted (deficit)
Total net position
June 30,
2015 2014
$ 2,264,907 $ 2,602,378
86,102 -
21,284,901 14,986,609
23,635,910 17,588,987
63,435 -
2,260,996 3,105,971
209,157 -
21,058,289 14,735,971
55,642 -
115,261 (252,955)
$ 21,229,192 $ 14,483,016
Cape Fear Public Transportation Authority
Management's Discussion and Analysis (Unaudited)
June 30, 2015
A comparison of the statement of net position to the prior year shows an increase in net position by
$6,746,176 resulting primarily from (1) receiving federal funding and state matches for the construction of
the new operations and maintenance facility, and (2) implementation of GASB Statements 68 and 71
which reduced net position based on recognition of the Authority's estimated net present value of the
liability for pension benefits as of July 1, 2014, by $117,481. Total assets increased by $6,046,923 and
liabilities decreased by $844,975 from the prior year.
The statement of revenue, expenses and changes in net position for the current year shows that total
operating expenses exceeded operating revenue and non - operating revenue (expense) by $456,210. The
Authority earned $2,563,080 in transportation service fares and fees. Capital contributions, consisting of
federal, State and local grants, totaled $7,319,867 for the year ended June 30, 2015. Operating grants
and contributions totaled $6,154,309.
During Authority fiscal year 2014 -2015, the Authority completed several legacy projects. These projects
include completion of the approximate $13,500,000 operations center, delivery of two compressed natural
gas buses and other rolling stock. These investments, undertaken without incurring debt, will serve the
community for decades and underscores the Authority's commitment to the community. The projects also
aggressively leveraged state and federal funding keeping the local tax burden to a minimum. Planning for
these investments, including revenue acquisition, was the effort of years of labor undertaken by the
Authority. These investments will reduce maintenance, fuel and utility costs for years to come. The efforts
will be realized through reduced operating costs which will reduce taxpayer subsidies well into the future.
Condensed Statement of Revenue, Expenses and Change in Net Position
Figure 2
Operating revenue
Operating expenses
Operating loss
Nonoperating revenue
Loss before capital contributions
Capital contributions
Increase (decrease) in net position
Net Position, Previously Reported
Restatement
Net Position, Restated
Net Position, Ending
Year Ended June 30,
2015 2014
$ 2,563,080 $ 2,522,353
9,173,599 8,916,736
(6,610,519) (6,394,383)
6,154,309 5,571,859
(456,210)
(822,524)
7,319,867
4,820,681
6,863,657
3,998,157
14, 483, 016 10, 484, 859
(117,481) -
14, 365, 535 10, 484, 859
$ 21,229,192 $ 14,483,016
Cape Fear Public Transportation Authority
Management's Discussion and Analysis (Unaudited)
June 30, 2015
For the year ended June 30, 2015, the increase in net position is primarily due to receiving federal
funding and state matches for the construction of the new operations and maintenance facility. The
Authority had an operating loss of $6,610,519 from its operations, nonoperating revenue of $6,154,309
and capital contributions of $7,319,867. Capital contributions were primarily related to the construction of
a new operations and maintenance facility. The Authority received an operating subsidy of $1,443,470
from its primary government, City of Wilmington, North Carolina. The remainder of the Authority's
operating and capital grants were received from the Federal Transit Administration, North Carolina
Department of Transportation and New Hanover County. The Authority's operating revenue increased by
$40,727 from the prior year primarily due to a 33% increase in fares effective for a portion of the year
ended June 30, 2014, starting in February, 2014, and all of the year ended June 30, 2015. The Authority's
operating expenses increased by $256,863 over the prior year primarily due to increases maintenance
and repair costs, and labor which were offset to an extent by decreases in insurance and fuel.
Capital Assets. The undepreciated cost of the Authority's capital assets consisted of the following as of
June 30, 2015.
Capital Assets
Land
Buildings and improvements
Buses
Other vehicles
Furniture, fixtures, machinery and equipment
Construction in progress
Total
June 30,
2015 2014
$ 2,717,404 $
2,717,404
16,429,846
5,428,224
9,712,981
8,692,512
2,011,507
1,753,476
2,012,298
1,541,266
875 5,804,076
$ 32,884,911 $ 25,936,958
The Authority had capital asset additions to building and improvements during the year ended June 30,
2015, of $5,198,421, the majority of which related to the construction of the new operations and
maintenance facility.
See Note 4 in the notes to basic financial statements for additional information.
Long -Term Debt. The Authority had no outstanding debt as of June 30, 2015.
Planning
The Authority's financial planning is led by its Department of Finance & Administration with oversight
provided by the Finance and Budget Committee. The committee is comprised of members of the board of
directors and the Authority's professional finance staff. A five (5) year capital budget was developed
during the fiscal year by the Finance Department which outlines the Authority's short range needs and
local matching fund expectations.
Service planning efforts are led by the Authority's Planning & Development Department with oversight
provided by Planning and Operations Committee. The committee is comprised of members of the board
of directors and the Authority's professional planning staff. Long range transit planning is the
responsibility of the Wilmington Urban Area Metropolitan Planning Organization (WMPO) with input from
the Authority. The WMPO is currently finishing work on a long range transportation plan for the region
which includes a public transportation component. The long range plan will serve as the blueprint for the
Authority's next short range transportation plan which be undertaken in 2016.
Cape Fear Public Transportation Authority
Management's Discussion and Analysis (Unaudited)
June 30, 2015
Economic Factors
The Authority serves customers primarily in New Hanover County but also from Brunswick and Pender
Counties. New Hanover County currently has an estimated population of 216,298 people. Of that amount,
113,657 reside in the City of Wilmington, which is the Authority's primary government. The June 2015
unemployment rate in the City was 5.5 %, which was slightly lower than the State of North Carolina
unemployment rate of 5.8 %, and slightly higher than the federal unemployment rate of 5.3 %. The
Authority is impacted by a number of different economic factors and takes these in consideration when
approving budgets. Potential budget reductions at the State level, as well as potential reductions in
federal transit funding, are being 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, to maintain the service levels enjoyed by the Authority's customers. All of these factors were
included in preparing the Authority's budget for the 2016 fiscal year.
During the fiscal year, surface transportation funding was authorized under the Moving Ahead for
Progress in the 21st Century Act (MAP -21). MAP -21 allocates funding from the federal motor vehicle fuel
tax to highway and transit programs, as well as other surface transportation infrastructure projects. Since
passage of MAP -21 in 2012, funding requirements have exceeded revenues from the motor vehicle fuel
tax requiring congress to allocate non - traditional revenues to bridge the deficit. These deficits have led to
federal transit assistance that has proven unable to keep up with the needs of systems like Wave Transit.
Without a long term and sustainable transportation bill, federal assistance over the past several years has
been consistently flat during a period of increasing prices. The cost of transit buses alone have risen over
64% since the Authority's last major fleet replacement in 2003. Under MAP -21, dedicated bus capital
funds were reduced from over 20% of dedicated transit capital funding, to 9.5% of the funds. MAP -21
eliminated the $984 million competitive Bus and Bus Facilities program, moving $422 million to a Formula
Bus program ( §5339) which created a net loss of $562 million, or 57% to dedicated bus capital funding.
An important component of MAP -21 was elimination of the discretionary bus capital program ( §5309).
The program was replaced with a formula bus capital program ( §5339). While considered a noble effort to
ensure equity and eliminate earmarks, funding for the §5339 program has proven inadequate. The
Authority's annual §5339 allocation is not enough to purchase a single bus. Fleet replacement using
exclusively §5339 funding is impossible under the current formula allocation.
The Authority's partnership with Federal Transit is a significant economic generator in the region.
Supporting local businesses, creating jobs and providing public transportation to thousands of employees
keep the local economic engine in motion. The absence of long term federal transportation legislation
threatens Wave Transit's ability to provide these important services.
Requests for Information
This report is designed to provide an overview of the Authority's finances for those with an interest in this
area. Questions concerning any of the information found in this report or requests for additional
information should be directed to the Executive Director, Cape Fear Public Transportation Authority,
Forden Station, 505 Cando Street, Wilmington, NC, 28405
Albert Eby, Executive Director
Cape Fear Public Transportation Authority
Wilmington, North Carolina
N.
BASIC
FINANCIAL STATEMENTS
(This Page Was Intentionally Left Blank)
Cape Fear Public Transportation Authority
Statement of Net Position
June 30, 2016
Authority Foundation Total
Assets
Current Assets
Cash and cash equivalents (Note 2) $ 351,979 $ 5,370 $ 357,349
Accounts receivable (Note 8) 11,504 - 11,504
Due from other governments (Note 3 and 8) 1,677,502 - 1,677,502
Inventory of material and supplies 194,087 - 194,087
Prepaid expenses 24,465 - 24,465
Total current assets 2,259,537 5,370 2,264,907
Noncurrent Assets
Restricted net pension asset (Note 6)
Capital assets (Note 4)
Land
Building and improvements
Buses
Other vehicles
Furniture, fixtures, machinery and equipment
Construction in progress
Less accumulated depreciation
Total capital assets
Total assets
Deferred Outflows of Resources (Note 6 and 7)
Liabilities
Current Liabilities
Accounts payable
Trade
Capital
Due to primary governments (Note 5)
Due to other governments
Compensated absences payable
Accrued expenses
Total current liabilities
Deferred Inflows of Resources (Note 6 and 7)
Commitments and Contingencies (Notes 9, 10 and 11)
Net Position
Net investment in capital assets
Restricted for buses
Unrestricted
Total net position
See Notes to Basic Financial Statements.
9
86,102 - 86,102
2,717,404 -
2,717,404
16,429,846 -
16,429,846
9,712,981 -
9,712,981
2,011,507 -
2,011,507
2,012,298 -
2,012,298
875 -
875
32,884,911 -
32,884,911
(11,600,010) -
(11,600,010)
21,284,901 -
21,284,901
23,630,540 5,370
23,635,910
63,435 - 63,435
1,210,131 -
1,210,131
226,612 -
226,612
552,021 -
552,021
58,070 -
58,070
177,623 -
177,623
36,539 -
36,539
2,260,996 -
2,260,996
209,157 -
209,157
21,058,289 - 21,058,289
55,642 - 55,642
109,891 5,370 115,261
$ 21,223,822 $ 5,370 $ 21,229,192
Cape Fear Public Transportation Authority
Statement of Revenue, Expenses and Changes in Net Position
Year Ended June 30, 2015
Operating Revenue
Charges for services (Note 8)
Operating Expenses
Labor
Fringe benefits
Fuel and lubricants
Purchased services (Note 11)
Repairs and maintenance
Insurance
Advertising
Tires and tubes
Utilities
Materials and supplies
Office supplies
Other operating expenses
Depreciation
Total operating expenses
Operating loss
Nonoperating Revenue
Federal grants
State grants
Operating subsidy City of Wilmington, primary government
Operating subsidy from New Hanover County
Miscellaneous income
Gain on disposition of capital assets
Total nonoperating revenue
Profit (loss) before capital contributions
Capital Contributions
Federal grants
State grants
Capital contribution City of Wilmington, primary government
Other governments
Total capital contributions
Increase in net position
Net Position, Previously Reported
Restatement (Note 12)
Net Position, Restated
Net Position, Ending
See Notes to Basic Financial Statements.
10
Authoritv Foundation Total
$ 2,563,080 $ - $ 2,563,080
3,834,650
- 3,834,650
1,181,954
- 1,181,954
867,230
- 867,230
566,558
- 566,558
635,992
- 635,992
683,878
- 683,878
58,932
- 58,932
98,758
- 98,758
111,299
- 111,299
44,040
- 44,040
9,377
- 9,377
283,221
3,744 286,965
793,966
- 793,966
9,169, 855
3,744 9,173, 599
(6,606,775)
(3,744) (6,610,519)
3,375,700
- 3,375,700
743,461
- 743,461
1,443,470
- 1,443,470
432,822
- 432,822
110,615
9,114 119,729
39,127
- 39,127
6,145,195
9,114 6,154, 309
(461,580)
5,370 (456,210)
6,313,415
- 6,313,415
719,010
- 719,010
180,115
- 180,115
107,327
- 107,327
7.319.867
- 7.319.867
6,858,287 5,370 6,863,657
14,483,016 - 14,483,016
(117,481) - (117,481)
14,365,535 - 14,365,535
$ 21,223,822 $ 5,370 $ 21,229,192
Cape Fear Public Transportation Authority
Statement of Cash Flows
Year Ended June 30, 2015
Authority Foundation Total
Cash Flows From Operating Activities
Cash received from customers and users $ 3,194,689 $ - $ 3,194,689
Cash payments to suppliers for goods and services (4,296,606) (3,744) (4,300,350)
Cash payments to or on behalf of employees (5,048,331) - (5,048,331)
Net cash used in operating activities (6,150,248) (3,744) (6,153,992)
Cash Flows From Noncapital Financing Activities
Operating grants
Operating subsidy from primary government
Operating subsidies from other governments
Advance from primary government
Repayment of advance from primary government
Miscellaneous
Net cash provided by noncapital financing activities
Cash Flows From Capital and Related Financing Activities
Proceeds from sale of capital assets
Acquisition of capital assets
Capital contributions
Net cash provided by capital and related financing activities
Net increase in cash and cash equivalents
Cash and Cash Equivalents
Beginning
Ending
Reconciliation of Operating Loss to Net Cash
Used in Operating Activities
Operating loss
Adjustments to reconcile operating loss to net
cash used in operating activities:
Depreciation
Pension expense
Changes in assets and liabilities:
Accounts receivable
Inventory
Prepaids
Accounts payable — trade
Compensated absences payable
(Increase)decrease in deferred outflows of resources for pensions
Accrued expenses
Net cash used in operating activities
See Notes to Basic Financial Statements.
11
4,177,231
- 4,177,231
1,443,470
- 1,443,470
432,822
- 432,822
952,021
- 952,021
(1,012,300)
- (1,012,300)
110,615
9,114 119,729
6,103,859
9,114 6,112,973
39,127
- 39,127
(7,116,315)
- (7,116,315)
7,319,867
- 7,319,867
242,679
- 242,679
196,290 5,370 201,660
155,689 - 155,689
$ 351,979 $ 5,370 $ 357,349
$ (6,606,775) $ (3,744) $ (6,610,519)
793,966 - 793,966
5,574 - 5,574
631,609
- 631,609
(68,013)
- (68,013)
(24,465)
- (24,465)
(832,424)
- (832,424)
26,134
- 26,134
(63,435)
- (63,435)
(12,419)
- (12,419)
$ (6,150,248) $
(3,744) $ (6,153,992)
(This Page Was Intentionally Left Blank)
NOTES TO BASIC
FINANCIAL STATEMENTS
(This Page Was Intentionally Left Blank)
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 Authority conform to generally accepted
accounting principles (GAAP) as applicable to governments. The Governmental Accounting Standards
Board (GASB) is the accepted standard setting body for establishing governmental accounting and
financial reporting principles. The following is a summary of the more significant accounting policies.
Reporting Entity:
Cape Fear Public Transportation Authority (the Authority), operating as Wave Transit, is a public authority
created in 2004 by a concurrent resolution of New Hanover County (County) and the City of Wilmington
(City). The interlocal agreement adopted by the County and City provides for the operation of
transportation facilities and transportation services throughout the City of Wilmington and up to 30 miles
outside its corporate limits and effectively merged the transportation facilities and services previously
provided by the County and City. The interlocal agreement was amended on March 2, 2015 at which time
the term of the agreement was changed to be effective for 20 years, with one 10 year renewal term after
the initial term upon approval of the County and the City. Additionally, the agreement requires the
Authority to maintain a minimal fund balance of eight percent, of the operating budget by the fiscal year
ending June 30, 2016. If the Authority uses money from the fund balance such that the fund balance falls
below eight percent, the Authority is to submit a plan to the City and County to replenish the fund balance
within 24 months.
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 one member appointed jointly by the
County and City from a human service agency served by the public transportation services.
Each proposed annual budget shall be submitted to the County and City for approval by the County
Commissioners and City Council. The County and City shall provide annual funding to the Authority as
their budgets permit. Any debt necessary for the maintenance, improvement or expansion of the Authority
shall be incurred by the County or City for the benefit of the Authority. 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, effective July 1, 2005, provides
that the City will (a) make available to the Authority on July 1 of each fiscal year the annual appropriation
approved in the adopted City budget, and (b) allow the Authority access to additional necessary operating
funds that exceed the City's annual operating assistance where the Authority has not received awarded
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 State funding to the Authority. For
financial reporting purposes, in conformity with GASB Codification Section 2100, the Authority is a
component unit of the City and is included as such in the City's comprehensive annual financial report.
A blended component unit is a separate legal entity whose operations are so intertwined with Cape Fear
Public Transportation Authority that it is, in substance, the same as the Authority. Making Waves
Foundation (the Foundation), a North Carolina nonprofit corporation, is a blended component unit of the
Authority as the Authority elects all of the board members of Making Waves Foundation's board of
directors. Making Waves Foundation provides transportation fare subsidies to nonprofit agencies who
provide assistance to members of the community in need and individuals who otherwise would not have
access to transportation. The balances and transactions of Making Waves Foundation are blended with
those of the Authority in the accompanying financial statements. The activity of the blended component
unit in not considered to be materially significant as compared to the activity of CFPTA. Making Waves
Foundation does not issue separate financial statements.
12
Cape Fear Public Transportation Authority
Notes to Basic Financial Statements
Note 1. Summary of Significant Accounting Policies (Continued)
Basis of Presentation:
All activities of the Authority are accounted for within a single business -type activity and within a single
proprietary (enterprise) fund accompanied by a blended component unit. Enterprise funds may be used to
report any activity for which a fee is charged to external users for goods or services. Activities are
required to be reported as enterprise funds if any one of the following criteria is met.
a. The activity is financed with debt that is secured solely by a pledge of the net revenues from
fees and charges of the activity. Debt that is secured by a pledge of net revenues from fees
and charges and the full faith and credit of a related primary government or component unit —
even if that government is not expected to make any payments —is not payable solely from
fees and charges of the activity. (Some debt may be secured, in part, by a portion of its own
proceeds but should be considered as payable "solely" from the revenues of the activity.)
b. Laws or regulations require that the activities' costs of providing services, including capital
costs (such as depreciation or debt service), be recovered with fees and charges, rather than
with taxes or similar revenues.
c. The pricing policies of the activity establish fees and charges designed to recover its costs,
including capital costs (such as depreciation or debt service).
Measurement Focus and Basis of Accounting:
In accordance with North Carolina General Statutes, the Authority budgets and maintains its accounts
during the year using the modified accrual basis of accounting, and thereafter prepares external financial
statements in accordance with GAAP as applied to governmental entities.
The accounting and financial reporting treatment applied to a fund is determined by its measurement
focus. Enterprise funds are accounted for on the economic resources measurement focus and on the
accrual basis of accounting. Under the accrual basis of accounting, revenue is recorded when earned and
expenses are recorded at the time liabilities are incurred, regardless of when the related cash flows take
place. Nonexchange transactions, in which the Authority gives (or receives) value without directly
receiving (or giving) equal value in exchange, include grants and donations. Revenue from grants and
donations is recognized in the fiscal year in which all eligibility requirements have been satisfied.
Enterprise funds distinguish operating revenues and expenses from nonoperating items. Operating
revenues and expenses generally result from providing services and producing and delivering goods in
connection with an enterprise fund's principal 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, maintenance and repairs and other
operating expense. All revenues and expenses not meeting this definition are reported as nonoperating
revenues and expenses.
Under the terms of grant and loan agreements, the Authority funds certain operating and capital
expenditures by a combination of specific cost - reimbursement grants, categorical formula grants, and
operating revenues. Thus, when operating and capital expenditures are incurred, there are both restricted
and unrestricted net position available to finance these expenditures. It is the Authority's policy to first
apply cost - reimbursement grant resources to fund these expenditures, followed by categorical formula
grants and then by operating revenues.
13
Cape Fear Public Transportation Authority
Notes to Basic Financial Statements
Note 1. Summary of Significant Accounting Policies (Continued)
Budgets:
Budgets are adopted utilizing the modified accrual basis of accounting as required by State statute. An
annual budget ordinance is adopted for the operating fund (subfund). 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.
Expenditures may not legally exceed appropriations at the fund level for the operating fund and at the
fund level for the capital project fund. Any appropriations which increase the total amount of
appropriations for a fund must be approved by the Board of Directors and the City Council and County
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 the last day on which certain steps of
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 officer the budget requests as
estimates for their department for the budget year.
June 1 The budget and the budget message shall be submitted to the governing board. The
public hearing on the budget should be scheduled at this time.
July 1 The budget ordinance shall be adopted by the governing board.
Cash and Cash Equivalents:
The Authority considers all highly - liquid investments (including restricted assets) with a maturity of three
months or less when purchased to be cash equivalents.
Deposits and Investments:
All deposits of the Authority are made in board - designated official depositories and are collateralized as
required by State statute [G.S. 159 -31]. Official depositories may be established with any bank or savings
and loan association whose principal office is located in North Carolina. Also, the Authority may establish
time deposit accounts such as NOW and SuperNOW accounts, money market accounts and certificates
of deposits.
State statute [G.S. 159- 30(c)] authorizes the Authority to invest in obligations of the United States or
obligations fully guaranteed both as to principal and interest by the United States; obligations of the State
of North Carolina; bonds and notes of any North Carolina local government or public authority; obligations
of certain non - guaranteed federal agencies; certain high quality issues of commercial paper and bankers'
acceptances; and the North Carolina Capital Management Trust ( NCCMT). The securities of the NCCMT
cash portfolio, a SEC - registered (2a -7) money market mutual fund, are valued at fair value, which is the
NCCMT's share price.
Accounts Receivable:
Accounts receivable include grant receivables for which eligibility requirements have been satisfied.
Management evaluates receivables by identification of troubled accounts and applying historical
experience. Management has determined that all receivables are collectible and no allowance for doubtful
accounts is required.
14
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 initial, individual cost of more than $5,000
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 construction period interest. Donated capital assets are
valued at their estimated or appraised fair market value on the date received. The cost of normal
maintenance and repairs which do not add to the value of the asset or materially extend assets' lives are
not capitalized. The Authority's capital assets include a transfer facility, garage and maintenance facilities,
buses, other vehicles, certain equipment, land and construction in progress.
Depreciation is charged to operations using a straight -line method based on the following estimated
useful lives:
Asset Class
Building and improvements
Buses
Other vehicles
Furniture, fixtures, machinery and equipment
Estimated
Useful Lives
40 years
10 -12 years
5 — 7 years
5 -10 years
The Authority may consider capital assets impaired if both (a) the decline in service utility of the capital
asset is large in magnitude and (b) the event or change in circumstances is outside the normal life cycle
of the capital asset. Impaired assets will be appropriately reduced in value or discarded if idle. The
Authority owns no significant assets that would be considered impaired.
Deferred outflows /inflows of resources:
In addition to assets, the statement of net position will sometimes report a separate section for deferred
outlfows of resources. This separate financial statement element, Deferred Outflows of Resources,
represents a consumption of net position that applies to a future period and so will not be recognized as
an expense or expenditures until then. The Authority has one item that met this criterion, contributions
made to the pension plan in the 2015 fiscal year. In addition to liabilities, the statement of net position will
sometimes report a separate section for deferred inflows of resources. This separate financial statement
element, Deferred Inflows of Resources, represents an acquisition of net position that applies to a future
period and so will not be recognized as revenue until then. The Authority has one item that met the
criterion for this category — deferrals of pension expense that result from the implementation of GASB 68.
Compensated Absences:
As more fully described in Note 11, the Authority contracts with a management company to provide
management services, including the furnishing of certain employees to operate and maintain the
equipment. As of June 30, 2015, the Authority recorded a liability of $177,623 for unused vacation
benefits for employees of the management company and the Authority. The Authority's 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.
15
Cape Fear Public Transportation Authority
Notes to Basic Financial Statements
Note 1. Summary of Significant Accounting Policies (Continued)
The Authority has adopted a last -in first -out method of accumulating compensation time. The portion of
accumulated leave time which is expected to be liquidated after the next fiscal year -end is not considered
to be material and, therefore, no provision for noncurrent compensated absences has been made in the
financial statements.
The Authority's sick leave policy allows for an accumulation of up to a maximum of 120 days for
employees of the management company and indefinitely for Authority employees. Sick leave does not
vest. The Authority has no obligation for accumulated sick leave until it is actually taken; therefore, no
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 capital
assets, net of related debt, if any.
Restricted for buses — This component of net position consists of a portion of fund balance that is
restricted by revenue source for purchase of buses.
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.
Pensions:
For purposes of measuring the net pension asset, deferred outflows of resources and deferred inflows of
resources related to pensions, and pension expense, information about the fiduciary net position of the
Local Government Employees' Retirement System (LGERS) and additions to /deductions from LGERS'
fiduciary net position have been determined on the same basis as they are reported by LGERS. For this
purpose, plan member contributions are recognized in the period in which the contributions are due. The
Authority's employer contributions are recognized when due and the Authority has a legal requirement to
provide the contributions. Benefits and refunds are recognized when due and payable in accordance with
the terms of LGERS. Investments are reported at fair value.
Use of Estimates:
The preparation of financial statements requires management to make estimates and assumptions that
affect the reported amounts of assets, liabilities, and disclosures of contingent assets and liabilities at the
date of the financial statements and the reported amounts of revenues and expenses during the reporting
period. Actual results could differ from those estimates. The primary accounting estimates used by the
Authority's management having financial significance is the estimation of lives of the capital assets and
valuation of receivables for collectability.
16
Cape Fear Public Transportation Authority
Notes to Basic Financial Statements
Note 2. Cash and Cash Equivalents
At June 30, 2015, cash and cash equivalents is comprised of the following:
Deposits:
All the deposits of North Carolina local governments are either insured or collateralized by using one of
two methods. Under the Dedicated Method, all deposits that exceed the federal depository insurance
coverage level are collateralized with securities held by the Authority's agents in the Authority's name.
Under the Pooling Method, which is a statewide collateral pool, all uninsured deposits are collateralized
with securities held by the State Treasurer's agent in the name of the State Treasurer. Since the State
Treasurer is acting in a fiduciary capacity for the Authority, these deposits are considered to be held by
the Authority's agents in their name. The amount of the pledged collateral is based on an approved
averaging method for non - interest bearing deposits and the actual current balance for interest - bearing
deposits. Depositories using the Pooling Method report to the State Treasurer the adequacy of their
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 collateral
pledged for the Authority under the Pooling Method, the potential exists for under - collateralization, and
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 depository that collateralizes public deposits under
the Pooling Method. The Authority has no formal policy regarding the custodial credit risk for deposits, but
relies on the State Treasurer to enforce standards of minimum capitalization for all pooling method
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 deposits are properly secured.
At June 30, 2015, the Authority's deposits had a carrying amount of $349,784 and a bank balance of
$472,329 of which, $250,000 was fully covered by federal depository insurance.
At June 30, 2015, the Foundation's deposits had a carrying amount and bank balance of $5,370 of which,
$5,370 was fully covered by federal depository insurance.
Cash on Hand:
The Authority's cash on hand at June 30, 2015, consisted of various petty cash funds totaling $1,352.
Investments:
At June 30, 2015, the Authority's investments consisted of $843 in North Carolina Capital Management
Trust's Cash Portfolio, which carried a credit rating of AAAm by Standard and Poor's. The Authority's had
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, 2015, consists of the following:
State operating grant revenues
$ 824,775
Federal operating grant revenues
356,852
Local government sales and use taxes
285,170
Other local government receivables
210,705
$ 1,677,502
17
Cape Fear Public Transportation Authority
Notes to Basic Financial Statements
Note 4. Capital Assets
Capital asset activity for the year ended June 30, 2015, was as follows:
Capital assets not being
depreciated:
Land
Construction in progress
Capital assets being
depreciated:
Buildings and improvements
Buses
Other vehicles
Furniture, fixtures, machinery
and equipment
Total capital assets being
depreciated
Less accumulated
depreciation for:
Buildings and improvements
Buses
Other vehicles
Furniture, fixtures, machinery
and equipment
Total accumulated depreciation
Total capital assets
being depreciated, net
Capital assets, net
Balance Balance
June 30. 2014 Additions Deletions June 30. 2015
$ 2,717,404 $ - $ - $ 2,717,404
5,804,076 - (5,803,201) 875
8,521,480 - (5,803,201) 2,718,279
5,428,224 11,001,622 - 16,429,846
8,692,512 1,020,469 - 9,712,981
1,753,476 402,367 (144,336) 2,011,507
1,541,266 471,032 - 2,012,298
17,415,478 12,895,490 (144,336) 30,166,632
(1,023,627) (172,368) - (1,195,995)
(7,390,638) (292,101) - (7,682,739)
(1,417,577) (167,505) 144,305 (1,440,777)
(1,118,507) (161,992) - (1,280,499)
(10,950,349) (793,966) 144,305 (11,600,010)
6,465,129
$ 14,986,609
Note 5. Due to Primary Governments
18,566,622
$ 21,284,901
The Authority has an agreement with the City whereby the City, subject to the availability of funds, may in
its sole discretion allow the Authority access to additional necessary operating funds in an amount not to
exceed $400,000, less any additional operating funds provided by the County in excess of the County's
annual appropriation for public transportation, as an advance on funds to be received by the Authority 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 outstanding balance from its annual
appropriation.
As of June 30, 2015, the Authority had non - interest bearing advances outstanding totaling $400,000 to
the City. Additionally, the Authority had a payable outstanding to the City totaling $152,021 for fuel the
Authority had purchased through the City's fuel contract.
18
Cape Fear Public Transportation Authority
Notes to Basic Financial Statements
Note 6. Retirement Plans
North Carolina Local Government Employees' Retirement System
Plan Description. The Authority is a participating employer in the statewide Local Governmental
Employees' Retirement System (LGERS), a cost - sharing, multiple - employer, defined benefit pension plan
administered by the State of North Carolina. LGERS membership is comprised of general employees and
local law enforcement officers (LEOs) of participating local governmental entities. Article 3 of G.S.
Chapter 128 assigns the authority to establish and amend benefit provisions to the North Carolina
General Assembly. Management of the plan is vested in the LGERS Board of Trustees, which consists of
13 members — nine appointed by the Governor, one appointed by the State Senate, one appointed by the
State House of Representatives, and the State Treasurer and State Superintendent, who serve as ex-
officio members. The Local Governmental Employees' Retirement System is included in the
Comprehensive Annual Financial Report (CAFR) for the State of North Carolina. The State's CAFR
includes financial statements and required supplementary information for LGERS. That report may be
obtained by writing to the Office of the State Controller, 1410 Mail Service Center, Raleigh, North Carolina
27699 -1410, by calling (919) 981 -5454, or at www.osc.nc.gov.
Benefits Provided. LGERS provides retirement and survivor benefits. Retirement benefits are determined
as 1.85% of the member's average final compensation times the member's years of creditable service. A
member's average final compensation is calculated as the average of a member's four highest
consecutive years of compensation. Plan members are eligible to retire with full retirement benefits at age
65 with five years of creditable service, at age 60 with 25 years of creditable service, or at any age with
30 years of creditable service. Plan members are eligible to retire with partial retirement benefits at age
50 with 20 years of creditable service or at age 60 with five years of creditable service (age 55 for
firefighters). Survivor benefits are available to eligible beneficiaries of members who die while in active
service or within 180 days of their last day of service and who have either completed 20 years of
creditable service regardless of age (15 years of creditable service for firefighters and rescue squad
members who are killed in the line of duty) or have completed five years of service and have reached age
60. Eligible beneficiaries may elect to receive a monthly Survivor's Alternate Benefit for life or a return of
the member's contributions. The plan does not provide for automatic post- retirement benefit increases.
Increases are contingent upon actuarial gains of the plan.
Contributions. Contribution provisions are established by General Statute 128 -30 and may be amended
only by the North Carolina General Assembly. The Authority's employees are required to contribute 6% of
their compensation. Employer contributions are actuarially determined and set annually by the LGERS
Board of Trustees. The Authority's contractually required contribution rate for the year ended June 30,
2015, was 7.07% of compensation, actuarially determined as an amount that, when combined with
employee contributions, is expected to finance the costs of benefits earned by employees during the year.
Contributions to the pension plan from the Authority were $63,435 for the year ended June 30, 2015.
Refund of Contributions. Authority employees who have terminated service as a contributing member of
LGERS, may file an application for a refund of their contributions. By state law, refunds to members with
at least five years of service include 4% interest. State law requires a 60 day waiting period after service
termination before the refund may be paid. The acceptance of a refund payment cancels the individual's
right to employer contributions or any other benefit provided by LGERS.
19
Cape Fear Public Transportation Authority
Notes to Basic Financial Statements
Note 6. Retirement Plans (Continued)
Pension Liabilities, Pension Expense, and Deferred Outflows of Resources and Deferred Inflows
of Resources Related to Pensions
At June 30, 2015, the Authority reported an asset of $86,102 for its proportionate share of the net pension
asset. The net pension asset was measured as of June 30, 2014. The total pension liability used to
calculate the net pension asset was determined by an actuarial valuation as of December 31, 2013. The
total pension liability was then rolled forward to the measurement date of June 30, 2014 utilizing update
procedures incorporating the actuarial assumptions. The Authority's proportion of the net pension asset
was based on a projection of the Authority's long -term share of future payroll covered by the pension
plan, relative to the projected future payroll covered by the pension plan of all participating LGERS
employers, actuarially determined. At June 30, 2014, the Authority's proportion was 0.015 %, which was
an increase of 0.001% from its proportion measured as of June 30, 2013.
For the year ended June 30, 2015, the Authority recognized pension expense of $5,574. At June 30,
2015, the Authority reported deferred outflows of resources and deferred inflows of resources related to
pensions from the following sources:
Deferred Outflows Deferred Inflows of
of Resources Resources
Net difference between projected and actual earnings $ - $ 209,157
on pension plan investments
Contributions subsequent to the measurement date 63,435 -
$ 63,435 $ 209,157
$63,435 reported as deferred outflows of resources related to pensions resulting from Authority's
contributions subsequent to the measurement date will be recognized as an increase of the net pension
asset in the year ended June 30, 2016. Other amounts reported as deferred inflows of resources related
to pensions will be recognized in pension expense as follows:
Year ended June 30:
2016
2017
2018
2019
$ (52,295)
(52,295)
(52,295)
(52,272)
$ (209,157)
Actuarial Assumptions — The total pension liability in the December 31, 2013 actuarial valuation was
determined using the following actuarial assumptions, applied to all periods included in the measurement:
Inflation 3.0 percent
Salary increases 4.25 to 8.55 percent, including inflation and
productivity factor
Investment rate of return 7.25 percent, net of pension plan investment
expense, including inflation
The plan currently uses mortality tables that vary by age, gender, employee group (i.e. general, law
enforcement officer) and health status (i.e. disabled and healthy). The current mortality rates are based
on published tables and based on studies that cover significant portions of the U.S. population. The
healthy mortality rates also contain a provision to reflect future mortality improvements.
all
Cape Fear Public Transportation Authority
Notes to Basic Financial Statements
Note 6. Retirement Plans (Continued)
The actuarial assumptions used in the December 31, 2013 valuation were based on the results of an
actuarial experience study for the period January 1, 2005 through December 31, 2009.
Future ad hoc COLA amounts are not considered to be substantively automatic and are therefore not
included in the measurement.
The projected long -term investment returns and inflation assumptions are developed through review of
current and historical capital markets data, sell -side investment research, consultant whitepapers, and
historical performance of investment strategies. Fixed income return projections reflect current yields
across the U.S. Treasury yield curve and market expectations of forward yields projected and interpolated
for multiple tenors and over multiple year horizons. Global public equity return projections are established
through analysis of the equity risk premium and the fixed income return projections. Other asset
categories and strategies' return projections reflect the foregoing and historical data analysis. These
projections are combined to produce the long -term expected rate of return by weighting the expected
future real rates of return by the target asset allocation percentage and by adding expected inflation. The
target allocation and best estimates of arithmetic real rates of return for each major asset class as of June
30, 2014 are summarized in the following table:
Long -Term Expected
Asset Class Target Allocation Real Rate of Return
Fixed Income 36.0% 2.5%
Global Equity
Real Estate
Alternatives
Credit
Inflation Protection
40.5%
6.1%
8.0%
5.7%
6.5%
10.5%
4.5%
6.8%
4.5%
3.7%
100%
The information above is based on 30 year expectations developed with the consulting actuary for the
2013 asset liability and investment policy study for the North Carolina Retirement Systems, including
LGERS. The long -term nominal rates of return underlying the real rates of return are arithmetic
annualized figures. The real rates of return are calculated from nominal rates by multiplicatively
subtracting a long -term inflation assumption of 3.19 %. All rates of return and inflation are annualized.
A new asset allocation policy was finalized during the fiscal year ended June 30, 2014 to be effective July
1, 2014. The new asset allocation policy utilizes different asset classes, changes in the structure of
certain asset classes, and adopts new benchmarks. Using the asset class categories in the preceding
table, the new long -term expected arithmetic real rates of return are: Fixed Income 2.2 %, Global Equity
5.8 %, Real Estate 5.2 %, Alternatives 9.8 %, Credit 6.8% and Inflation Protection 3.4 %.
Discount rate — The discount rate used to measure the total pension liability was 7.25 %. The projection of
cash flows used to determine the discount rate assumed that contributions from plan members will be
made at the current contribution rate and that contributions from employers will be made at statutorily
required rates, actuarially determined. Based on these assumptions, the pension plan's fiduciary net
position was projected to be available to make all projected future benefit payments of the current plan
members. Therefore, the long -term expected rate of return on pension plan investments was applied to all
periods of projected benefit payments to determine the total pension liability.
21
Cape Fear Public Transportation Authority
Notes to Basic Financial Statements
Note 6. Retirement Plans (Continued)
Sensitivity of the Authority's proportionate share of the net pension asset to changes in the discount rate
— The following presents the Authority's proportionate share of the net pension asset calculated using the
discount rate of 7.25 percent, as well as what the Authority's proportionate share of the net pension asset
or net pension liability would be if it were calculated using a discount rate that is one percentage point
lower (6.25 percent) or one percentage point higher (8.25 percent) than the current rate:
1 % Discount 1 %
Decrease Rate Increase
(6.25 %) (7.25 %) (8.25 %)
Authority's proportionate share of the net
pension liability (asset) $ 292,271 $ (86,102) $ (404,681)
Pension plan fiduciary net position — Detailed information about the pension plan's fiduciary net position is
available in the separately issued Comprehensive Annual Financial Report (CAFR) for the State of North
Carolina.
Note 7. Deferred Outflows and Inflows of Resources
Deferred outflows of resources at June 30, 2015 is comprised of the following:
Contributions to pension plan in current fiscal year $ 63,435
Deferred inflows of resources at June 30, 2015 is comprised of the following:
Pension deferrals $ 209,157
Note 8. Major Customers
The Authority's operating revenue consists of farebox and contract revenues. Transactions with various
governmental agencies accounted for the following revenues and related accounts receivable at June 30,
2015:
Customer
Revenues
Percentage of
Operating Revenues
Accounts
Receivable
University of North Carolina
at Wilmington
$ 776,925
30.3%
$ 11,459
New Hanover County
Department of Social Services
595,831
23.2%
68,058
Department of Aging
31,012
1.2%
6,953
Other Agencies
7,325
0.3%
-
$ 1,411,093
$ 86,470
22
Cape Fear Public Transportation Authority
Notes to Basic Financial Statements
Note 9. Contingencies
The Authority receives significant operating and capital grants from the federal and State governments
Under the terms of federal and State grants, monitoring and periodic audits are required and certain costs
may be questioned as not being appropriate expenditures under the terms of the grants. Such audits
could lead to reimbursements to the grantor agencies. The Authority's management believes
disallowances arising from such audits, if any, will not be significant. 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, capital assets acquired partially or
entirely with federal or State funds have asset disposition restrictions which provide for the disposition of
assets or proceeds from the approved sales in accordance with federal or State regulations.
At June 30, 2015, the Authority was a party to various legal disputes and litigation. In the opinion of the
Authority's management, the ultimate effect of these matters will not have a material adverse effect on the
Authority's financial position.
Note 10. Risk Management
The Authority is exposed to various risks of loss related to torts; theft of, damage to, and destruction of
assets; errors and omissions; injuries to employees; and natural disasters.
The Authority obtains workers' compensation coverage up the statutory limits through Hartford
Underwriters Ins Co, up to $2 million in commercial general liability, $1 million in automobile liability, and
up to $4 million in umbrella liability through Selective Ins. Co. of S. C. The Authority does not currently
maintain flood insurance as none of its structural property is located in a flood plain.
In accordance with G.S. 159 -29, the Authority's employees that have access to $100 or more at any
given time of the Authority's funds are performance bonded through a commercial surety bond. The
Director of Finance is bonded for $250,000. The remaining employees that have access to funds are
bonded under a blanket bond for $250,000.
Note 11. Management Agreement
The Authority retains a transit management company to provide management and operational services
for the transportation system. For the year ended June 30, 2015, those services were provided under a
contract with First Transit, Inc. (FTI), who shall employ, furnish and supervise certain personnel
necessary for the management and operation of the public transportation system. In addition, the
agreement provides for assistance with certain other managerial functions required for the day -to -day
operations of the Authority. For the year ended June 30, 2015, the Authority incurred management fees
totaling $359,594 which is included in purchased services. The contract is through June 30, 2016, and
provides for minimum payments of $383,320 for the year ended June 30, 2016.
Note 12. Change in Accounting Principles /Restatement
The Authority implemented Governmental Accounting Standards Board (GASB) statement 68,
Accounting and Financial Reporting for Pensions (an amendment of GASB Statement No. 27) and 71,
Pension Transition for Contributions Made Subsequent to the Measurement Date — an amendment of
GASB No. 68 in the fiscal year ending June 30, 2015. The implementation of the statement required the
Authority to record beginning net pension liability and the effects on net position of contributions made by
the Authority during the measurement period (fiscal year ending June 30, 2014). As a result, beginning
net position decreased by $117,481 effective July 1, 2014.
23
Cape Fear Public Transportation Authority
Notes to Basic Financial Statements
Note 13. Pronouncements Issued but Not Yet Effective
The GASB has issued several pronouncements prior to June 30, 2015, that have effective dates that may
impact future financial presentations.
Management has not currently determined what, if any, impact implementation of the following
statements may have on the financial statements of the Authority,
GASB Statement Number 72, Fair Value Measurement and Application, will be effective for the
Authority beginning with its year ending June 30, 2016.
GASB Statement Number 73, Accounting and Financial Reporting for Pensions and Related Assets
That Are Not within the Scope of GASB Statement 68, and Amendments to Certain Provisions of
GASB Statements 67 and 68, will be effective for the Authority beginning with its year ending June
30, 2016.
GASB Statement Number 74, Financial Reporting for Postemployment Benefit Plans Other Than
Pension Plans, will be effective for the Authority beginning with its year ending June 30, 2017.
GASB Statement Number 75, Accounting and Financial Reporting for Postemployment Benefits
Other Than Pensions, will be effective for the Authority beginning with its year ending June 30, 2018
GASB Statement Number 76, The Hierarchy of Generally Accepted Accounting Principles for State
and Local Governments, will be effective for the Authority beginning with its year ending June 30,
2016.
Vill
Required
Supplementary Financial Data
This section contains additional information required by generally accepted accounting principles.
• Schedule of Proportionate Share of Net Pension Asset for Local Government Employees'
Retirement System
• Schedule of Contributions to Local Government Employees' Retirement System
25
Cape Fear Public Transportation Authority's Proportionate Share of
Net Pension Liability (Asset)
Required Supplementary Information
Last Two Fiscal Years*
Local Government Employees' Retirement System
2015 2014
Cape Fear's proportion of net pension liability (asset) ( %) 0.014600% 0.014300%
Cape Fear's proportion of the net pension liability (asset) $ (86,102) $ 172,370
Cape Fear's covered - employee payroll 780,693 804,735
Cape Fear's proportionate share of the net pension liability
(asset) as a percentage of its covered - employee payroll - 11.03% 21.42%
Plan fiduciary net position as a percentage of the total
pension liability ** 102.64% 94.35%
* The amounts presented for each fiscal year were determined as of the prior fiscal year
ending June 30.
** This will be the same percentage for all participant employers in the LGERS plan.
We
Cape Fear Public Transportation Authority Contributions
Required Supplementary Information
Last Two Fiscal Years*
Local Government Employees' Retirement System
Contractually required contribution
Contributions in relation to the contractually
required contribution
Contribution deficiency (excess)
Cape Fear's covered - employee payroll
Contributions as a percentage of covered employee
payroll
27
2015 2014
63,435 $ 54,889
$ 63,435 $ 54,889
909,339
6.98%
780,693
7.03%
SUPPLEMENTARY
FINANCIAL INFORMATION
(This Page Was Intentionally Left Blank)
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, 2015
Operating expenditures
Labor
3,860,784
Fringe benefits
Variance,
Fuel and lubricants
867,230
Purchased services
Positive
Repairs and maintenance
Budget
Actual
(Negative)
Operating revenues
58,932
Tires and tubes
98,758
Farebox revenues
$ 1,072,000
$ 1,889,135
$ 817,135
Government contracted services
820,000
673,945
(146,055)
Total operating revenues
1,892,000
2,563,080
671,080
Operating expenditures
Labor
3,860,784
Fringe benefits
1,181,954
Fuel and lubricants
867,230
Purchased services
566,558
Repairs and maintenance
635,992
Insurance
683,878
Advertising
58,932
Tires and tubes
98,758
Taxicabs and leases
-
Utilities
111,299
Materials and supplies
44,040
Office supplies
9,377
Other operating expenses
283,221
Total operating expenditures
8,472,006 8,402,023 69,983
Excess of operating expenditures
over operating revenues (6,580,006) (5,838,943) 741,063
(Continued)
28
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, 2015
Reconciliation: modified accrual basis with full accrual:
Intergovernmental revenue from Capital Project Fund
Depreciation
Gain on disposal of capital assets
Compensated absences (change)
Increase in net position
29
7,319,867
(793,966)
39,127
26,134
$ 6,858,287
Variance,
Positive
Budget
Actual
(Negative)
Nonoperating revenues
Federal grants
$ 3,180,194
$ 3,375,700
$ 195,506
State grants
1,030,150
743,461
(286,689)
Operating subsidy from primary government
1,514,700
1,443,470
(71,230)
Operating subsidies from other governments
764,875
432,822
(332,053)
Other income
90,087
110,615
20,528
Total nonoperating revenues
6,580,006
6,106,068
(473,938)
Excessrevenues
over expenditures
$ -
267,125
$ 267,125
Reconciliation: modified accrual basis with full accrual:
Intergovernmental revenue from Capital Project Fund
Depreciation
Gain on disposal of capital assets
Compensated absences (change)
Increase in net position
29
7,319,867
(793,966)
39,127
26,134
$ 6,858,287
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, 2015
Revenue
Restricted intergovernmental:
Federal grants
State grants
Primary government
Other governments
Total revenue
Expenditures
Section 5307 Capital
Section 5309 Capital
Section 5311 Capital
Section 5317 Capital
Section 5316 Capital
Section 5339 Capital
Advanced Technology Program
American Recovery & Reinvestment Act
Total expenditures
Excess of expenditures over
revenues
Total
Project
Estimates
Actual
Prior Current Total
Years Year To Date
$ 13,427,933 $ 4,673,728 $ 6,313,415 $ 10,987,143
1,363,942 547,938
719,010
1,266,948
771,699 7,389
180,115
187,504
1,257,133 -
107,327
107,327
16,820,707 5,229,055
7,319,867
12,548,922
6,954,056
427,033
3,857,918
4,284,951
7,500,000
4,854,741
1,753,945
6,608,686
480,376
46,004
5,735
51,739
576,424
-
455,916
455,916
460,020
-
455,916
455,916
645,001
-
376,791
376,791
15,750
-
-
-
189,080
-
186,068
186,068
16,820,707
5,327,778
7,092,289
12,420,067
$ - $ (98,723) $ 227,578 $ 128,855
30
(This Page Was Intentionally Left Blank)
INTERNAL CONTROL
AND
COMPLIANCE SECTION
(This Page Was Intentionally Left Blank)
J
Independent Auditor's Report on IRSIM US LLIP
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 generally accepted in the United States of
America and the standards applicable to financial audits contained in Government Auditing Standards
issued by the Comptroller General of the United States, the financial statements of Cape Fear Public
Transportation Authority and its related Foundation (the Authority) as of and for the year ended June 30,
2015, and the related notes to the basic financial statements, which collectively comprise the Authority's
basic financial statements, and have issued our report thereon dated December 11, 2015.
Internal Control Over Financial Reporting
In planning and performing our audit of the financial statements, we considered the Authority's internal
control over financial reporting (internal control) to determine the audit procedures that are appropriate in
the circumstances for the purpose of expressing our opinion on the financial statements, but not for the
purpose of expressing an opinion on the effectiveness of the Authority's internal control. Accordingly, we
do not express an opinion on the effectiveness of the Authority's internal control.
A deficiency in internal control exists when the design or operation of a control does not allow
management or employees, in the normal course of performing their assigned functions, to prevent, or
detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a
combination of deficiencies, in internal control, such that there is a reasonable possibility that a material
misstatement of the entity's financial statements will not be prevented, or detected and corrected on a
timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control
that is less severe than a material weakness, yet important enough to merit attention by those charged
with governance.
Our consideration of internal control was for the limited purpose described in the first paragraph of this
section and was not designed to identify all deficiencies in internal control that might be material
weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any
deficiencies in internal control that we consider to be material weaknesses. However, material
weaknesses may exist that have not been identified.
1" RE ~ IP L W Ilf ~ R MI -m &DI N G L IE T) D
A� .) DI T I TA X I � f.)�ISLJI...:�FIP14(T
31
f,f• I7 , in ii. /o (,'-)1 (i $;GYP f :f, ,��. .,� r- :di d ;r: }; f 7'sd .irry [ �i d
WOO) if"
Compliance and Other Matters
As part of obtaining reasonable assurance about whether the Authority's financial statements are free
from material misstatement, we performed tests of its compliance with certain provisions of laws,
regulations, contracts, and grant agreements, noncompliance with which could have a direct and material
effect on the determination of financial statement amounts. However, providing an opinion on compliance
with those provisions was not an objective of our audit, and 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 our testing of internal control and compliance
and the results of that testing, and not to provide an opinion on the effectiveness of the entity's internal
control or on compliance. This report is an integral part of an audit performed in accordance with
Government Auditing Standards in considering the entity's internal control and compliance. Accordingly,
this communication is not suitable for any other purpose.
Wilmington, North Carolina
December 11, 2015
RSM US LLP, an Iowa limited liability partnership, is doing business as McGladrey LLP in the state
of North Carolina and is a CPA firm registered with the North Carolina State Board of Certified
Public Accountants under the name McGladrey LLP. Rules permitting the use of RSM US LLP
have been published in the North Carolina Register and are pending final approval.
32
Independent Auditor's Report
on Compliance for Each Major Federal Program RS US LIP
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 Each Major Federal Program
We have audited Cape Fear Public Transportation Authority's compliance with the types of compliance
requirements described in the OMB Circular A-133 Compliance Supplement and the Audit Manual for
Governmental Auditors in North Carolina, issued by the Local Government Commission, that could have
a direct and material effect on each of Cape Fear Public Transportation Authority's major federal
programs for the year ended June 30, 2015. Cape Fear Public Transportation Authority's major federal
programs are identified in the summary of auditor's results section of the accompanying schedule of
findings and questioned costs.
Management's Responsibility
Management is responsible for compliance with the requirements of laws, regulations, contracts, and
grants applicable to its federal programs.
Auditor's Responsibility
Our responsibility is to express an opinion on compliance for each of Cape Fear Public Transportation
Authority's major federal programs based on our audit of the types of compliance requirements referred to
above. We conducted our audit of compliance in accordance with auditing standards generally accepted
in the United States of America; the standards applicable to financial audits contained in Government
Auditing Standards, issued by the Comptroller General of the United States; OMB Circular A -133 Audits
of States, Local Governments, and Non - profit Organizations and the State Single Audit Implementation
Act. Those standards, OMB Circular A -133, and the State Single Audit Implementation Act require that
we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the
types of compliance requirements referred to above that could have a direct and material effect on a
major federal program occurred. An audit includes examining, on a test basis, evidence about Cape Fear
Public Transportation Authority's compliance with those requirements and performing such other
procedures as we considered necessary in the circumstances.
We believe that our audit provides a reasonable basis for our opinion on compliance for each major
federal program. However, our audit does not provide a legal determination of Cape Fear Public
Transportation Authority's compliance.
Opinion on Each Major Federal Program
In our opinion, Cape Fear Public Transportation Authority complied, in all material respects, with the types
of compliance requirements referred to above that could have a direct and material effect on each of its
major federal programs for the year ended June 30, 2015.
THE IPC ii t OF BEING ILMD ;I:IF ST"00D
l.ADI f I 1AX I COLSUL"I "NG
33
V'"11 II` p - t� , i I . I , I ,1 Y ii, M I s ,ra(1r I , I I v, v, h ..... falnI i Y „ ..... I r ,rv' iS I
Report on Internal Control Over Compliance
Management of Cape Fear Public Transportation Authority is responsible for establishing and maintaining
effective internal control over compliance with the types of compliance requirements referred to above. In
planning and performing our audit of compliance, we considered Cape Fear Public Transportation
Authority's internal control over compliance with the types of requirements that could have a direct and
material effect on each major federal program to determine the auditing procedures that are appropriate
in the circumstances for the purpose of expressing an opinion on compliance for each major federal
program and to test and report on internal control over compliance in accordance with OMB Circular A-
133, but not for the purpose of expressing an opinion on the effectiveness of internal control over
compliance. Accordingly, we do not express an opinion on the effectiveness of Cape Fear Public
Transportation Authority's internal control over compliance.
A deficiency in internal control over compliance exists when the design or operation of a control over
compliance does not allow management or employees, in the normal course of performing their assigned
functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a
federal program on a timely basis. A material weakness in internal control over compliance is a
deficiency, or combination of deficiencies, in internal control over compliance, such that there is a
reasonable possibility that material noncompliance with a type of compliance requirement of a federal
program will not be prevented, or detected and corrected, on a timely basis. A significant deficiency in
internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over
compliance with a type of compliance requirement of a federal program that is less severe than a material
weakness in internal control over compliance, yet important enough to merit attention by those charged
with governance.
Our consideration of internal control over compliance was for the limited purpose described in the first
paragraph of this section and was not designed to identify all deficiencies in internal control over
compliance that might be material weaknesses or significant deficiencies. We did not identify any
deficiencies in internal control over compliance that we consider to be material weaknesses. However,
material weaknesses may exist that have not been identified.
The purpose of this report on internal control over compliance is solely to describe the scope of our
testing of internal control over compliance and the results of that testing based on the requirements of
OMB Circular A -133. Accordingly, this report is not suitable for any other purpose.
Wilmington, North Carolina
December 11, 2015
RSM US LLP, an Iowa limited liability partnership, is doing business as McGladrey LLP in the state
of North Carolina and is a CPA firm registered with the North Carolina State Board of Certified
Public Accountants under the name McGladrey LLP. Rules permitting the use of RSM US LLP
have been published in the North Carolina Register and are pending final approval.
34
MEN
Independent Auditor's Report on
Compliance for the Major State Program and
on Internal Control Over Compliance in Accordance With IRSM US LILP
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 the Major State Program
We have audited Cape Fear Public Transportation Authority's (the Authority) compliance with the types of
compliance requirements described in the Audit Manual for Governmental Auditors in North Carolina,
issued by the Local Government Commission that could have a direct and material effect on Cape Fear
Public Transportation Authority's major State program for the year ended June 30, 2015. Cape Fear
Public Transportation Authority's major State program is identified in the summary of auditor's results
section of the accompanying schedule of findings and questioned costs.
Management's Responsibility
Management is responsible for compliance with the requirements of laws, regulations, contracts, and
grants applicable to its State programs.
Auditor's Responsibility
Our responsibility is to express an opinion on compliance for Cape Fear Public Transportation Authority's
major State program based on our audit of the types of compliance requirements referred to above. We
conducted our audit of compliance in accordance with auditing standards generally accepted in the
United States of America; the standards applicable to financial audits contained in Government Auditing
Standards, issued by the Comptroller General of the United States; applicable sections of OMB Circular
A -133, Audits of Local Governments, and Non - Profit Organizations, as described in the Audit Manual for
Government Auditors in North Carolina, and the State Single Audit Implementation Act. Those standards,
applicable sections of OMB Circular A -133, and the State Single Audit Implementation Act require that we
plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types
of compliance requirements referred to above that could have a direct and material effect on a major
State program occurred. An audit includes examining, on a test basis, evidence about Cape Fear Public
Transportation Authority's compliance with those requirements and performing such other procedures as
we considered necessary in the circumstances.
We believe that our audit provides a reasonable basis for our opinion on compliance for the major State
program. However, our audit does not provide a legal determination of Cape Fear Public Transportation
Authority's compliance.
Opinion on the Major State Program
In our opinion, Cape Fear Public Transportation Authority complied, in all material respects, with the types
of compliance requirements referred to above that could have a direct and material effect on its major
State program for the year ended June 30, 2015.
1" RE IPL W IL R MI -m &DI N G U III 1 :114 s.ri �) &3
A �.) D I T I TA X I� f.) �I S LJ I...:�F I �� T
35
Report on Internal Control Over Compliance
Management of Cape Fear Public Transportation Authority is responsible for establishing and maintaining
effective internal control over compliance with the types of compliance requirements referred to above. In
planning and performing our audit of compliance, we considered Cape Fear Public Transportation
Authority's internal control over compliance with the types of requirements that could have a direct and
material effect on the major State program to determine the auditing procedures that are appropriate in
the circumstances for the purpose of expressing an opinion on compliance for the major State program
and to test and report on internal control over compliance in accordance with applicable sections of OMB
Circular A -133, but not for the purpose of expressing an opinion on the effectiveness of internal control
over compliance. Accordingly, we do not express an opinion on the effectiveness of Cape Fear Public
Transportation Authority's internal control over compliance.
A deficiency in internal control over compliance exists when the design or operation of a control over
compliance does not allow management or employees, in the normal course of performing their assigned
functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a
State program on a timely basis. A material weakness in internal control over compliance is a deficiency,
or combination of deficiencies, in internal control over compliance, such that there is a reasonable
possibility that material noncompliance with a type of compliance requirement of a state program will not
be prevented, or detected and corrected, on a timely basis. A significant deficiency in internal control over
compliance is a deficiency, or a combination of deficiencies, in internal control over compliance with a
type of compliance requirement of a federal program that is less severe than a material weakness in
internal control over compliance, yet important enough to merit attention by those charged with
governance.
Our consideration of internal control over compliance was for the limited purpose described in the first
paragraph of this section and was not designed to identify all deficiencies in internal control over
compliance that might be material weaknesses or significant deficiencies. We did not identify any
deficiencies in internal control over compliance that we consider to be material weaknesses. However,
material weaknesses may exist that have not been identified.
The purpose of this report on internal control over compliance is solely to describe the scope of our
testing of internal control over compliance and the results of that testing based on the requirements of
applicable sections of OMB Circular A -133 and the State Single Audit Implementation Act. Accordingly,
this report is not suitable for any other purpose.
Wilmington, North Carolina
December 11, 2015
RSM US LLP, an Iowa limited liability partnership, is doing business as McGladrey LLP in the state
of North Carolina and is a CPA firm registered with the North Carolina State Board of Certified
Public Accountants under the name McGladrey LLP. Rules permitting the use of RSM US LLP
have been published in the North Carolina Register and are pending final approval.
Cape Fear Public Transportation Authority
Schedule of Findings and Questioned Costs
For the Fiscal Year Ended June 30, 2015
Section 1. Summary of Independent Auditor's Results
Financial Statements
Type of auditor's report issued: Unmodified
Internal control over financial reporting:
• Material weakness(es) identified?
• Significant deficiency(ies) identified?
Noncompliance material to financial statements noted?
Federal Awards
Internal control over major federal programs:
• Material weakness(es) identified?
• Significant deficiency(ies) identified?
Type of auditor's report issued on compliance for
major federal program:
Any audit findings disclosed that are required
to be reported in accordance with
Section 510(a) of Circular A -133?
Identification of major federal programs:
Yes ✓ No
Yes ✓ None Reported
Yes ✓ No
Yes ✓ No
Yes ✓ None Reported
7,u•. -.
Yes ✓ No
CFDA Program Name
20.500/20.507/20.526 Federal Transit Cluster
20.516/20.521 Transit Services Programs Cluster
Dollar threshold used to distinguish between
Type A and Type B Programs $300,000
Auditee qualified as low -risk auditee? ✓ Yes
(Continued)
37
��
Cape Fear Public Transportation Authority
Schedule of Findings and Questioned Costs (Continued)
For the Fiscal Year Ended June 30, 2015
Section I. Summary of Independent Auditor's Results (Continued)
State Awards
Internal control over major state program:
• Material weakness(es) identified?
• Significant deficiency(ies) identified?
Type of auditor's report issued on compliance for
major state program:
Any audit findings disclosed that are required
to be reported in accordance with
State Single Audit Implementation Act.
Identification of major State program:
Program Name
State portion of Federal Transit Cluster
Section II. Financial Statement Findings
None reported
Yes
Yes
Unmodified
Yes ✓ No
Section III. Federal Award Findings and Questioned Costs
None reported
Section IV. State Award Findings and Questioned Costs
None reported
38
CFDA
N/A
✓ No
✓ None Reported
Cape Fear Public Transportation Authority
Corrective Action Plan
For the Fiscal Year Ended June 30, 2015
Section II. Financial Statement Findings
No corrective action plan is necessary
Section III. Federal Award Findings and Questioned Costs
No corrective action plan is necessary
Section IV. State Award Findings and Questioned Costs
No corrective action plan is necessary
39
Cape Fear Public Transportation Authority
Summary Schedule of Prior Audit Findings
For the Year Ended June 30, 2015
None reported in prior year.
►e
Cape Fear Public Transportation Authority
Schedule of Expenditures of Federal and State Awards
Year Ended June 30, 2015
Total U. S. Department of Transportation
State Grants (all direct)
Department of Transportation
State Maintenance Assistance Program
Technology Program
Apprentice /Intern Program
Pass Through New Hanover County
Rural Operating Assistance Program
Total Department of Transportation
Total Federal and State Expenditures
9,686,658 743,101 4,382,656
DOT -09 13 -SM -090 - 564,864 -
DOT -10 13 -AT -116 - 12,442 1,383
DOT -11 15- DG -052A - 16,296 1,815
DOT -22 04 -MA -002 - 130,214 11,396
- 723,816 14,594
9,686,658 1,466,917 4,397,250
See Notes to Schedule of Expenditures of Federal and State Awards
41
Federal
Grantor /Pass Through
CFDA
Grantor's
Expenditures
Grantor /Program Title
Number
Number
Federal
State
Local
Federal Assistance
U. S. Department of Transportation
Pass - Through Federal Transit Administration:
Federal Transit Cluster
Formula Grants (Capital)
20.507
NC -90 -0502
100,000
10,863
14,137
Formula Grants (Operating)
20.507
NC -90 -4537
329,868
-
655,476
Formula Grants (Operating)
20.507
NC -90 -4563
1,029,728
-
1,971,271
Formula Grants (Capital)
20.507
NC -90 -0563
1,141,853
-
285,463
Formula Grants (Capital)
20.507
NC -95 -X062
60,000
10,000
10,000
Formula Grants (Operating)
20.507
NC -95 -X067
40,167
-
43,497
Formula Grants (Operating)
20.507
Undetermined
130,102
-
64,940
Formula Grants (Capital)
20.507
NC -90 -X545
27,662
-
4,255
Formula Grants (Capital)
20.526
NC -34 -0002
432,008
4,993
47,420
Capital Investment Grants
20.500
NC -04 -0043
1,663,432
194,883
194,883
Capital Investment Grants
20.507
NC -04 -0525
3,262,511
448,156
422,286
Total Urbanized Area Formula Planning Cluster
8,217,331
668,895
3,713,628
Pass - Through State North Carolina
Department of Transportation
Transit Services Programs Cluster
Urbanized Areas (Operating)
20.516
14 -JA -0520
178,897
-
225,203
Urbanized Areas (Capital)
20.521
15- NF -052C
364,733
45,589
45,594
Urbanized Areas (Operating)
20.521
15 -NF -0520
188,613
-
255,865
732,243
45,589
526,662
Formula Grants for other than
Urbanized Areas (Capital)
20.509
14- CT -052C
1,844
230
230
Urbanized Areas (Capital)
20.509
14- JA -052C
364,732
-
91,184
Urbanized Areas (Capital)
20.509
15- AR -052C
148,854
18,606
18,608
Urbanized Areas (Operating)
20.509
15 -CT -0520
153,901
9,617
28,085
Urbanized Areas (Capital)
20.509
15- CT -052C
1,312
164
4,259
670,643
28,617
142,366
Pass - Through City of Wilmington, North Carolina
Department of Transportation
Highway Planning and Construction Cluster:
Transportation Planning
20.205
66,441
-
-
Total U. S. Department of Transportation
State Grants (all direct)
Department of Transportation
State Maintenance Assistance Program
Technology Program
Apprentice /Intern Program
Pass Through New Hanover County
Rural Operating Assistance Program
Total Department of Transportation
Total Federal and State Expenditures
9,686,658 743,101 4,382,656
DOT -09 13 -SM -090 - 564,864 -
DOT -10 13 -AT -116 - 12,442 1,383
DOT -11 15- DG -052A - 16,296 1,815
DOT -22 04 -MA -002 - 130,214 11,396
- 723,816 14,594
9,686,658 1,466,917 4,397,250
See Notes to Schedule of Expenditures of Federal and State Awards
41
Cape Fear Public Transportation Authority
Note to the Schedule of Expenditures of Federal and State Awards
For the Year Ended June 30, 2015
Note 1. Basis of Presentation
The accompanying schedule of expenditures of federal and State awards includes the federal and State
grant activity of Cape Fear Public Transportation Authority and is presented on the modified accrual basis
of accounting. The information in this schedule is presented in accordance with the requirements of OMB
Circular A -133, Audits of State, Local Governments, and Non - Profit Organizations and the State Single
Audit Implementation Act. Therefore, some amounts presented in this schedule may differ from amounts
presented in, or used in the preparation of, the basic financial statements.
M
Cape Fear Public
Transportation Authority
Report to the Board of Directors
December 11, 2015
THE POWER OF BUNG t KDERS I 00D
AU[')� F I TAX � C0I'4S(JMNG RSM
December 11, 2015
�1
"f)() "Ic lth .Thhd S h�Ic, al
\Mh'nhn(,'10an I�...8,11f(..' 1 73C)
T 1 91O rf ,, 9671
Board of Directors F� d -1 91O 762 e +2C)6
Cape Fear Public Transportation Authority
P.O. Box 12630 WNW .IS11)i IS .co 1)
Wilmington, North Carolina 28405
We are pleased to present this report related to our audit of the basic financial statements of Cape Fear
Public Transportation Authority (the Authority) for the year ended June 30, 2015. This report summarizes
certain matters required by professional standards to be communicated to you in your oversight
responsibility for Cape Fear Public Transportation Authority's financial reporting process.
This report is intended solely for the information and use of the Board of Directors and management and
is not intended to be, and should not be, used by anyone other than these specified parties. It will be our
pleasure to respond to any questions you have about this report. We appreciate the opportunity to
continue to be of service to Cape Fear Public Transportation Authority.
RSM US LLP, an Iowa limited liability partnership, is doing business as McGladrey LLP in the state
of North Carolina and is a CPA firm registered with the North Carolina State Board of Certified
Public Accountants under the name McGladrey LLP. Rules permitting the use of RSM US LLP
have been published in the North Carolina Register and are pending final approval.
THE IPOWER OF BEING II 'MF ST'00D
1ADI'f j 1"A', I )I:O SUL1 M
Contents
Required Communications 1 -2
Summary of Significant Accounting Estimates
Summary of Uncorrected Misstatements 4
Exhibit A— Letter Communicating Control Deficiency in Internal Control Over Financial
Reporting
Exhibit B— Significant Written Communications Between Management and Our Firm
Required Communications
Generally accepted auditing standards (AU -C 260, The Auditor's Communication With Those Charged
With Governance) require the auditor to promote effective two -way communication between the auditor
and those charged with governance. Consistent with this requirement, the following summarizes our
responsibilities regarding the financial statement audit as well as observations arising from our audit that
are significant and relevant to your responsibility to oversee the financial reporting process.
Area
Comments
Our Responsibilities With
Our responsibilities under auditing standards generally accepted in
Regard to the Financial
the United States of America; Government Auditing Standards issued
Statement Audit
by the Comptroller General of the United States; the provisions of the
Single Audit Act; OMB Circular A -133; OMB's Compliance
Supplement and the State Single Audit Implementation Act have been
described to you in our arrangement letter dated June 19, 2015. Our
audit of the financial statements does not relieve management or
those charged with governance of their responsibilities, which are also
described in that letter.
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 of
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. 68, Accounting and Financial
Reporting for Pensions -An Amendment of GASB 27 and GASB No.
71, Pension Transition for Contributions Made Subsequent to the
Measurement Date — an amendment of GASB No. 68. The
statements improve accounting and financial reporting by state and
local governments for pensions. We have added an emphasis
paragraph to our report to point to the Authority's disclosure of this.
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.
Management's Judgments and Accounting Estimates
Summary information about the process used by management in
formulating particularly sensitive accounting estimates and about our
conclusions regarding the reasonableness of those estimates is in the
attached Summary of Significant Accounting Estimates.
Audit Adjustments There were no audit adjustments made to the original trial balance
presented to us to begin our audit.
Page 1
Area Comments
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
management's judgments on any significant matters, the scope of the
audit, or significant disclosures to be included in the financial
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 or the
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
Letter Communicating We have separately communicated the control deficiency in internal
Control Deficiency in control over financial reporting identified during our audit of the
Internal Control Over financial statements and this communication is attached as Exhibit A.
Financial Reporting
Significant Written 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 B.
Page 2
Cape Fear Public Transportation Authority
Summary of Significant Accounting Estimates
Year Ended June 30, 2015
Accounting estimates are an integral part of the preparation of financial statements and are based upon
management's current judgment. The process used by management encompasses their knowledge and
experience about past and current events and certain assumptions about future events. You may wish to
monitor throughout the year the process used to determine and record these accounting estimates. The
following describes the significant accounting estimates reflected in the Company's June 30, 2015,
financial statements.
Estimate
Accounting Policy
Management's
Estimation Process
Basis for Our
Conclusions on
Reasonableness of
Estimate
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
Cape Fear Public Transportation Authority
Summary of Uncorrected Misstatements
Year Ended June 30, 2015
During the course of our audit, we accumulated an uncorrected misstatement that was determined by
management to be immaterial, both individually and in the aggregate, to the opinion unit of the basic
financial statements and the related financial statement disclosures. Following is a summary of this
difference.
Debit (Credit)
DESCRIPTION ASSETS LIABILITIES EQUITY REVENUE EXPENSES
CARRYOVER IMPACT FROM PREVIOUS YEARS:
Misstatements which reversed during the year
CURRENT YEAR MISSTATEMENTS:
None
Total Cumulative Misstatement Errors
$ - $ - $ 512 $ 8,379 $ (8,891)
(512) $ 8,379 $ (8,891)
Page 4
Exhibit A— Letter Communicating Control Deficiency
in Internal Control Over Financial Reporting
IIIIIIIIIIIIIII� �I�III��
To Management and the Board of Directors
Cape Fear Public Transportation Authority
Wilmington, North Carolina
if
f „�! o
In planning and performing our audit of the basic financial statements of Cape Fear Public Transportation
(the Authority) as of and for the year ended June 30, 2015, in accordance with auditing standards
generally accepted in the United States of America, we considered the Authority's internal control over
financial reporting (internal control) as a basis of designing audit procedures that are appropriate in the
circumstances for the purpose of expressing our opinions on the financial statements, but not for the
purpose of expressing an opinion on the effectiveness of the Authority's internal control. Accordingly, we
do not express an opinion on the effectiveness of the Authority's internal control.
A deficiency exists when the design or operation of a control does not allow management or employees,
in the normal course of performing their assigned functions, to prevent, or detect and correct
misstatements on a timely basis. A deficiency in design exists when (a) a control necessary to meet the
control objective is missing, or (b) when an existing control is not properly designed so that even if the
control operates as designed, the control objective would not be met. A deficiency in operation exists
when a properly designed control does not operate as designed or when the person performing the
control does not possess the necessary authority or qualifications to perform the control effectively.
A material weakness is a deficiency, or a combination of deficiencies, in internal control such that there is
a reasonable possibility that a material misstatement of the financial statements will not be prevented, or
detected and corrected on a timely basis.
A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less
severe than a material weakness, yet important enough to merit attention by those charged with
governance.
Following is a description of an identified control deficiency that we determined did not constitute a
significant deficiency or material weakness:
Maintenance of organizational documents
The Authority was created by a concurrent resolution of New Hanover County (County) and the City of
Wilmington (City). The County and City entered into an interlocal agreement that provides for operation
of the Authority. During March 2015, the interlocal agreement was amended by the County and the City.
The Authority had a draft version of the amendment to the interlocal agreement, but never obtained the
final executed version. It is not unusual for agreements to go through multiple versions. By not having
the final executed version, there is a risk the Authority would not be aware of certain requirements.
We recommend that the Authority maintain final executed versions of all organizational documents.
THE �POWER OF BEING LJNDERST'00D
V� "1AI�, r -,l II , ffil, �, I:,Y�7 MI ,, -1: ,t I, I I ri v, h,.:, f n:1f`i11 l, i Y '.y., •:;�, �� ,, j.Si :CU`i Y . "f )f "!� „ .....I
P ,,M I
Cape Fear Public Transportation Authority
Page 2
This communication is intended solely for the information and use of management, the board of directors,
and others within the Authority and is not intended to be and should not be used by anyone other than
these specified parties. We appreciate serving Cape Fear Public Transportation Authority and would be
happy to assist you in addressing and implementing of the suggestion in this letter.
Wilmington, N✓oo`rth Carolina
December 11, 2015
RSM US LLP, an Iowa limited liability partnership, is doing business as McGladrey LLP in the state
of North Carolina and is a CPA firm registered with the North Carolina State Board of Certified
Public Accountants under the name McGladrey LLP. Rules permitting the use of RSM US LLP
have been published in the North Carolina Register and are pending final approval.
Exhibit B— Significant Written Communications
Between Management and Our Firm
Public
IPVe
�, Cape , „e i�„/ Transportation
P.O. Box 12630 - Wilmington, NC 28405 - (910) 343-0106 - J910) 343-8317 fax - wavefransit.com
Authority
Hr
J
December 11, 2015
McGladrey LLP
300 North Third St, 5th Floor
Wilmington, NC 28401
This representation letter is provided in connection with your audit of the basic financial statements of
Cape Fear Public Transportation Authority (the "Authority ") as of and for the year ended June 30, 2015 for
the purpose of expressing an opinion on whether the financial statements are presented fairly, in all
material respects in accordance with accounting principles generally accepted in the United States (U.S.
GAAP).
We confirm, to the best of our knowledge and belief, as of December 11, 2015:
Financial Statements
1. We have fulfilled our responsibilities, as set out in the terms of the audit arrangement letter dated
June 19, 2015, for the preparation and fair presentation of the financial statements referred to above
in accordance with U.S. GAAP.
2. We acknowledge our responsibility for the design, implementation, and maintenance of internal
control relevant to the preparation and fair presentation of financial statements that are free from
material misstatement, whether due to fraud or error.
3. We acknowledge our responsibility for the design, implementation, and maintenance of internal
control to prevent and detect fraud.
4. Significant assumptions used by us in making accounting estimates, including those measured at fair
value, are reasonable and reflect our judgment based on our knowledge and experience about past
and current events and our assumptions about conditions we expect to exist and courses of action we
expect to take.
5. Related -party transactions, including those with the City of Wilmington and New Hanover County,
other organizations for which the nature and significance of their relationship with the Authority are
such that exclusion would cause the reporting entity's financial statements to be misleading or
incomplete, and interfund transactions, including interfund accounts and advances receivable and
payable, sale and purchase transactions, interfund transfers, long -term loans, leasing arrangements,
and guarantees, have been recorded in accordance with the economic substance of the transaction
and appropriately accounted for and disclosed in accordance with the requirements of U.S. GAAP.
6. All events subsequent to the date of the financial statements and for which U.S. GAAP requires
adjustment or disclosure have been adjusted or disclosed.
7. There is no known actual or possible litigation or claims for which disclosure is required in accordance
with U.S. GAAP.
McGladrey LLP
December 11, 2015
Page 2
8. There are no unasserted claims or assessments that our lawyer has advised us are probable of
assertion and must be disclosed in accordance with U.S. GAAP.
9. We have no direct or indirect, legal or moral obligation for any debt of any organization, public or
private.
10. We have complied with all aspects of contractual agreements that would have a material effect on the
financial statements in the event of noncompliance.
11. Net position (net investment in capital assets, restricted, and unrestricted) is properly classified.
12. We currently do not maintain flood insurance and we are not required to maintain it as none of our
structural property is located in a flood plain.
13. We have recorded all adjustments needed to implement GASB Statement No. 68 and 71.
As of and for the Year Ended June 30, 2015
We believe that the effects of the uncorrected misstatements aggregated by you and summarized below
are immaterial to the basic financial statements as a whole. For purpose of this representation, we
consider items to be material regardless of their size, if they involved the misstatement or omission of
accounting information that, in light of surrounding circumstances, makes it probably that the judgement
of a reasonable person relying on the information would be changed or influenced by the omission or
misstatement.
Debit Credit)
DESCRIPTION ASSETS LIABILITIES EQUITY REVENUE EXPENSES
CARRYOVER IMPACT FROM PREVIOUS YEARS:
Misstatements which reversed during the year
CURRENT YEAR MISSTATEMENTS:
None
Total Cumulative Misstatement Errors
Information Provided
14. We have provided you with:
- $ - $ 512 $ 8,379 $ (8,891)
(512) $ 8,379 $
a. Access to all information, of which we are aware that is relevant to the preparation and fair
presentation of the financial statements such as records, documentation, and other matters;
b. Additional information that you have requested from us for the purpose of the audit;
c. Unrestricted access to persons within the entity from whom you determined it necessary to obtain
audit evidence.
d. Minutes of the meetings of the governing board and committees, or summaries of actions of
recent meetings for which minutes have not yet been prepared.
15. All transactions have been recorded in the accounting records and are reflected in the financial
statements.
16. We have disclosed to you the results of our assessment of risk that the financial statements may be
materially misstated as a result of fraud.
McGladrey LL
December 11, 2015
Pace 3
17. We have no knowledge of allegations of fraud or suspected fraud, affecting the entity's financial
statements involving:
a. Management.
b. Employees who have significant roles in the internal control.
c. Others where the fraud could have a material effect on the financial statements.
18. We have no knowledge of any allegations of fraud or suspected fraud affecting the entity's financial
statements received in communications from employees, former employees, analysts, regulators,
short sellers, or others.
19. We have no knowledge of noncompliance or suspected noncompliance with laws and regulations
whose effects were considered when preparing financial statements.
20. We are not aware of any pending or threatened litigation and claims whose effects should be
considered when preparing the financial statements.
21. We have disclosed to you the identity of the entity's related parties and all the related -party
relationships and transactions of which we are aware.
22. We have obtained an executed copy of Amendment No. 9 Amendment to Interlocal Agreement
Between New Hanover County and the City of Wilmington to Create a Public Transportation Authority
and to Jointly Fund and Support the Authority.
23. We have informed you there are no significant deficiencies or material weaknesses in the design or
operation of internal controls that could adversely affect the Authority's ability to record, process,
summarize and report financial data.
24. We are aware of no communications from regulatory agencies concerning noncompliance with, or
deficiencies in, financial reporting practices.
Supplementary Information
25. With respect to supplementary information presented 'in relation to the financial statements as a
whole:
a. We acknowledge our responsibility for the presentation of such information.
b. We believe such information, including its form and content, is fairly presented in accordance with
accounting principles generally accepted in the United States of America.
c. The methods of measurement or presentation have not changed from those used in the prior
period.
d. There are no significant assumptions related to the supplementary information.
e. When supplementary information is not presented with the audited financial statements, we will
make the audited financial statements readily available to the intended users of the
supplementary information no later than the date of issuance of the supplementary information
and the auditor's report thereon.
26. With respect to management's discussion and analysis and the LGERS schedules presented as
required the Governmental Accounting Standards Board to supplement the basic financial
statements:
a. We acknowledge our responsibility for the presentation of such required supplementary
information.
McGladrey LLP
December 11, 2015
Page 4
b. We believe such required supplementary information is measured and presented in accordance
with guidelines prescribed by accounting principles generally accepted in the United States of
America
c. The methods of measurement or presentation have not changed from those used in the prior
period.
Compliance Considerations
In connection with your audit, conducted in accordance with Government Auditing Standards, we confirm:
1. We are responsible for compliance with laws, regulations, and provisions of contracts and grant
agreements and the amended Interlocal agreement between the City of Wilmington and New
Hanover County is applicable to the Authority.
2. We are not aware of any instances that have occurred or are likely to have occurred, of fraud and
noncompliance with provisions of laws and regulations that have a material effect on the financial
statements or other financial data significant to the audit objectives, and any other instances that
warrant the attention of those charged with governance.
3. We are not aware of any instances that have occurred or are likely to have occurred, of
noncompliance with provisions of contracts and grant agreements that have a material effect on the
determination of financial statement amounts or other financial data significant o the audit objectives.
4. We are not aware of any instances that have occurred or are likely to have occurred, of abuse that
could be quantitatively or qualitatively material to the financial statements or other financial data
significant to the audit objectives.
5. We are not aware of any violations (or possible violations) of laws, regulations, and provisions of
contracts and grant agreements whose effects should be considered for disclosure in the auditor's
report on noncompliance.
6. We have a process to track the status of audit findings and recommendations.
7. There have been no previous audits, attestation engagements, or other studies related to the
objectives of the audit being undertaken.
8. We have determined there are no reported findings, conclusions, and recommendations or corrective
actions for which we need to respond.
9. Acknowledge our responsibilities as it relates to non -audit services performed by the auditor,
including a statement that it assumes all management responsibilities; that it oversees the services by
designating an individual, preferable within senior management, who possess suitable skill,
knowledge, or experience; that it evaluates the adequacy and results of the services performed; and
that it accepts responsibility for the results of services.
10. Joseph Mininni, Finance Officer, who both has sufficient skills, knowledge, and experience; has
supervised, reviewed, and approved, and we take full responsibility for the financial statements and
related notes and acknowledge the auditor's role in the preparation of this information.
McGladrey LLP
December 11, 2015
Page 5
In connection with your audit of federal and State awards conducted in accordance with OMB Circular A-
133, Audits of States, Local Governments, and Non - Profit Organizations and the State Single Audit
Implementation Act, we confirm:
11. We are responsible for complying, and we have complied, with the requirements of OMB Circular A-
133 and the State Single Audit Implementation Act.
12. We are responsible for understanding and complying with the requirements of laws, regulations, and
the provisions of contracts and grant agreements related to each of our federal and State programs
and have complied, in all material respects, with those requirements.
13. We are responsible for establishing and maintaining, and we have established and maintained,
effective internal control over compliance for federal and State programs that provides reasonable
assurance that we are managing federal and State awards in compliance with laws, regulations, and
the provisions of contracts or grant agreements that could have a material effect on our federal and
State programs.
14. We have prepared the schedule of expenditures of federal and State awards(SEFSA) in accordance
with Circular A -133 and North Carolina's State Single Audit Implementation Act and have included
expenditures made during the period being audited for all awards provided by federal or State
agencies in the form of grants, federal or State cost- reimbursement contracts, loans, loan guarantees,
property (including donated surplus property), cooperative agreements, interest subsidies, insurance,
food commodities, direct appropriations, and other assistance.
15. We have identified and disclosed to you the requirements of laws, regulations, and the provisions of
contracts and grant agreements that are considered to have a direct and material effect on each
major federal and State program.
16. We have made available all contracts and grant agreements (including amendments, if any) and any
other correspondence relevant to federal programs and related activities that have taken place with
federal agencies or pass - through entities.
17. We have identified and disclosed to you that there are no amounts questioned and no known
noncompliance with the direct and material compliance requirements of federal and State awards,
including those resulting from other audits or program reviews.
18. We believe that we have complied with the direct and material compliance requirements.
19. We have made available all documentation related to compliance with the direct and material
compliance requirements, including information related to federal and State program financial reports
and claims for advances and reimbursements.
20. We have provided you our interpretations of any compliance requirements that are subject to varying
Interpretations.
21. there have been no communications from grantors or pass - through entities concerning possible
noncompliance with the direct and material compliance requirements, including communications
received from the end of the period covered by the compliance audit to the date of your report.
22. We have disclosed to you the findings received and related corrective actions taken for previous
audits, attestation engagements, and internal or external monitoring that directly relate to the
objectives of the compliance audit, including findings received and corrective actions taken from the
end of the period covered by the compliance audit to the date of your report.
23. We are responsible for taking corrective action on audit findings of the compliance audit.
McGladrey LLP
December 11, 2015
Page 6
24. There have been no prior audit findings by federal and/or State awarding agencies or pass- through
entities.
25. There have been no subsequent events that provide additional evidence with respect to conditions
that existed at the end of the reporting period that affect noncompliance during the reporting period.
26. There has been no known noncompliance with direct and material compliance requirements occurring
subsequent to the period covered by your report.
27. There have been no changes in internal control over compliance or other factors that might
significantly affect internal control, including any corrective action taken by us with regard to
significant deficiencies in internal control over compliance (including material weaknesses in internal
control over compliance), have occurred subsequent to the date as of which compliance is audited.
28. Federal and State program financial reports and claims for advances and reimbursements are
supported by the books and records from which the basic financial statements have been prepared.
29. The copies of federal and State program financial reports provided to you are true copies of the
reports submitted, or electronically transmitted, to the federal agency or pass - through entity, as
applicable.
30. There are no subrecipients.
31. We have charged costs to federal awards in accordance with applicable cost principles.
32. We are responsible for, and have accurately prepared, the summary schedule of prior audit findings
to include all findings required to be included by Circular A -133 and the State Single Audit
Implementation Act.
33. We will accurately complete appropriate sections of the data collection form. We further acknowledge
our responsibility for the complete, accurate, and timely filing of the data collection form with the
Federal Audit Clearinghouse.
34. There are no service organizations.
35. During the course of your audit, you may have accumulated records containing data that should be
reflected in our books and records. All such data have been so reflected. Accordingly, copies of such
records in your possession are no longer needed by us.
Cape Fear Public Transportation Authority
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Albert Eby '
Executive Director
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