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Agenda Packet 12 20 12 Cape Fear Public Transportation Authority 505 Cando St. Wilmington, NC 28405 (910) 343-0106 (910) 343-8317 wavetransit.com AregularlyscheduledmeetingoftheCapeFearPublicTransportationAuthoritywillbeheld Thursday, December20,2012at12:00pmintheWaveTransitBoardRoomatFordenStation,505CandoSt., Wilmington,NC28405.Anagendaforthemeetingispresentedbelow. MEETINGAGENDA 1)CalltoOrder 2)Momentofsilence 3)PledgeofAllegiance 4)Boardmemberrecognition05minutes 5)Employeerecognition05minutes 6)Consentagenda05minutes ApprovalofminutesfromtheNovember15,2012meeting(p.4) 1. 2013MeetingCalendar(p.7) 2. Automatedvehiclelocationsoftwareupgrade(p.8) 3. 7)Publiccommentperiod10minutes 8)FiscalYear2012AuditReportPresentation15minutes McGladrey,LLP(p. 10) 9)ProposedFareIncrease (p. 63) 10 minutes 10)CommitteeReports15minutes ExecutiveCommittee,Mr.DavidScheu,Chairman Planning&OperationsCommittee,Mr.HenryAdams,Chair November2012OperatingReport s(p.68) Restructuredroute204(p.70) Finance&BudgetCommittee,Mr.GeorgeDolan,Chair November2012FinancialReport(p.72) FacilitiesCommittee,Mr.JeffPetroff,Chair Addendum5toContractwithBeckerMorganGroup(p. 73) Addendum6tocontractwithBeckerMorganGroup(p. 75) 11)StaffReport10minutes Permanentlicensetags(p.77) IncidentaluseforAmtrakThruwayService(p.79) 12)Oldbusiness05minutes 13)Newbusiness05minutes 14)Adjourn ThenextmeetingoftheCapeFearPublicTransportationAuthorityisscheduledforThursday, January24,2013,at12:00pmintheWaveTransitBoardRoomatFordenStation,505CandoSt., Wilmington,NC28405. REMINDERAdministrativeofficeswillbeclosedonMonday,December24,2012.Busservicewill operatenormalweekdayserviceonMonday,December24,2012.Authorityadministrativeoffices CFPTA Agenda Packet 12/20/20121 willbeclosedandnobusserviceprovidedonTuesday,December25,2012inobservanceof Christmas.AuthorityadministrativeofficeswillbeclosedandnobusserviceprovidedonTuesday, January01,2013inobservanceofNew;©xDay. CFPTA Agenda Packet 12/20/20122 Cape Fear Public Transportation Authority 505 Cando St. Wilmington, NC 28405 (910) 343-0106 (910) 343-8317 wavetransit.com CONSENTAGENDA Thefollowingitemsareattachedforconsideration.Abriefexplanationandrecommendationfollows: 1)ApprovalofminutesfromtheNovember15,2012meeting(p.3) 2)2013MeetingCalendar(p.7) Inkeepingwiththe.©7xdesiretomeetthefourthThursdayofeachmonth,theattached calendarissubmittedforapproval. 3)Automatedvehiclelocationsoftwareupgrade(p.8) StaffhasbeenworkingcloselywithUNCWforseveralmonthstoidentifythemosteconomicaland effectivemethodforAVLsoftwaremaintenance.ThesituationwascomplicatedbyourAVLvendor filingbankruptcyandeventuallybeingsoldtoanotherAVLcompany.Staffisseekingapprovalto updateourcurrentAVLsoftwareatacostnottoexceed$45,000.00.Representativeswillbein WilmingtonnextweektomakeapresentationtostaffandUNCW/MobileEducation representativestoanswermultiplequestionsaboutthesoftwareupgrade.Fundsfortheproject havebeenidentifiedingrant11AT001.ThisgrantexpiresonDecember31,2012andtimeisof theessence.Therequiredtenpercentlocalmatchfortheprojectiscurrentlyprogrammedinthe adoptedbudget. CFPTA Agenda Packet 12/20/20123 Cape Fear Public Transportation Authority MINUTES OF THE CAPE FEAR PUBLIC TRANSPORTATION AUTHORITY November 15, 2012 Mr. David Scheu, Chair, Presiding MEMBERS PRESENT Mr. David Scheu, Chairman Mr. Don Betz, Secretary Mr. Bill Bryden Mr. George Dolan Mr. Chris Hawkins Mr. Kevin O’Grady Mr. Jeff Petroff MEMBERS ABSENT Mr. Henry Adams, Vice Chairman Mr. Jonathan Barfield Mr. Euran Daniels STAFF PRESENT Mr. Albert Eby, Executive Director Ms. Megan Matheny, Director of Planning & Development Mr. Joe Mininni, Director of Finance & Administration Ms. Jean Smith, Director of Operations Ms. Kathy Williams, Board & Customer Service Clerk CONTRACT MANAGEMENT STAFF PRESENT Mr. Andrew Olsen, Attorney Mr. Chris Greenman, Fixed Route Operations Manager Mr. Jeremy Miller, Fixed Route Maintenance Manager GUESTS PRESENT Ms. Suraiya Rashid, WMPO Ms. Sue Powell, NCDOT CALL TO ORDER Mr. Scheu, called the meeting to order at 12:03 pm The board meeting began with a moment of silence followed by reciting the Pledge of Allegiance CONSENT AGENDA Mr. Scheu presented the November 2012 consent agenda for approval Mr. Betz made a motion to accept the November 2012 consent agenda Mr. Dolan seconded the motion which carried unanimously PUBLIC COMMENT Mr. Scheu opened the public comment period Hearing no comments, Mr. Scheu closed the public comment period EXECUTIVE COMMITTEE CFPTA Agenda Packet 12/20/20124 Mr. Scheu stated that the committee did not meet and has nothing to report PLANNING COMMITTEE Mr. Scheu recognized Ms. Matheny to give the committee report in the absence of Mr. Adams Ms. Matheny stated that there was an increase of ridership in the month of October Ms. Matheny stated that staff is on schedule with the route changes recommended in the SRTP Ms. Matheny stated that the committee had directed staff to identify the twenty percent local match to cover the cost of engineering in the amount of $10,000 for amenities at four locations st The locations are Fifth & Meares, Medical Center & Canterwoods, 41 Street (Hoggard High School), and Floral Parkway & Peachtree Ave. All four locations are in City of Wilmington right of way and do not require approval from NCDOT Ms. Matheny stated she was working with Mr. Mininni to confirm the local match source Ms. Matheny stated that four to five additional Wavepool vans were being planned using STP- DA funds Ms. Matheny said that a twenty percent local match was required Mr. Petroff asked if additional vans were necessary Mr. Eby stated that two additional vans have been requested in Elizabethtown The remaining two vans would be used as spares while the program was being expanded FINANCE & BUDGET COMMITTEE Mr. Scheu recognized Mr. Dolan to give the committee report Mr. Dolan stated that the committee did not meet Mr. Dolan said that the FY 2013 budget is within estimates Mr. Dolan stated that an audit finding is expected based on the way the Short Range Transit Plan was expensed A late year settlement also contributed to the finding The audit report will be presented to the board by McGladrey in December 2012 or January 2013 Mr. Dolan said that the ongoing struggle with cash flow will be arising if SMAP funding does not appear by the end of December or first of January SMAP funding has been determined and the application has been submitted to NCDOT Mr. Dolan stated that the committee is considering moving the estimated $60,000 per year from Greyhound revenue to a general fund to build a cash reserve Mr. Hawkins inquired about staff assuming bus advertising Mr. Eby said that the issue is being investigated FACILITIES COMMITTEE Mr. Scheu recognized Mr. Petroff to give the committee report Mr. Petroff said 95% design drawings have been received for the maintenance/operations facility Cost estimates are expected before Thanksgiving Mr. Petroff stated that the CNG design and engineering portion of the project has been assumed by staff and an RFQ was being prepared for release Mr. Petroff said that the maintenance/operations facility construction contract is on schedule for an early 2013 bid letting Mr. Petroff said that the committee is seeking more information regarding expanding the parking lot at Forden Station STAFF REPORT Mr. Scheu recognized Mr. Eby to present the staff report Mr. Eby stated that the Authority prepared a peer analysis to see how Wave’s operations compared to other peers CFPTA Agenda Packet 12/20/20125 Mr. Eby said that the Authority compared favorably to other transit systems in the state Mr. Eby stated that staff is working to avoid the new license tag tax fees that could cost $400- $500 per vehicle per year The total license fee could be as high as $35,000 annually Mr. Eby said that DMV decided since Wave is not a city or county entity Authority vehicles were considered “for hire” Staff has the City of Wilmington Attorney for an opinion regarding the Authority’s component unit status As a component unit, the City may own the Authority’s fleet making vehicles available for permanent license plates Mr. Eby gave an brief update on the non-emergency medical transportation Mr. Eby said that the RFP for brokered transportation has been extended until Dec. 18, 2012 by DHHS OLD BUSINESS Mr. Bryden stated that Making Waves is seeking additional nominations for the board Mr. Betz recommended Mr. Koeppel Mr. Petroff asked Mr. Hawkins about the cleanliness of the buses Mr. Hawkins stated that the cleanliness continues to be cyclical Mr. Eby stated staff would work to ensure greater consistency in the cleanliness of the buses NEW BUSINESS Mr. Hawkins inquired about direct communication between the customer service representatives in communicating with bus dispatchers and operators Mr. Eby stated that he is aware of the problem and that he was working to ensure better communication ADJOURN Mr. Betz made a motion to adjourn the November 15, 2012 board meeting Mr. Dolan seconded and carried unanimously SCHEDULING OF NEXT MEETING The Authority’s next meeting is scheduled for December 20, 2012 at 12:00 pm in the Forden Station Board Room Respectfully Submitted, Albert Eby Executive Director /kw CFPTA Agenda Packet 12/20/20126 CapeFearPublicTransportationAuthority PursuanttoNCGS§143318.12,theCapeFearPublicTransportationAuthorityhasestablished thefollowingscheduleofmeetingsfor2013.ThescheduleisonfilewiththeAuthority SecretaryandavailableforpublicinspectionbycontactingWaveTransitat(910)3430106and atthefollowingURL: http://www.wavetransit.com/Portals/0/documents/Meeting_Schedule.pdf Changestothefollowingschedule(ifapproved)willcomplywithNCGS§143318.12.Adopted ataregularmeetingonDecember20,2012. $ ¸$ ³¤4¨¬¤,®¢ ³¨® ThursdayJanuary24,201312:00pmFordenStation,505CandoStreet ThursdayFebruary28,201312:00pmFordenStation,505CandoStreet ThursdayMarch28,201312:00pmFordenStation,505CandoStreet ThursdayApril25,201312:00pmFordenStation,505CandoStreet ThursdayMay23,201312:00pmFordenStation,505CandoStreet ThursdayJune27,201312:00pmFordenStation,505CandoStreet ThursdayJuly25,201312:00pmFordenStation,505CandoStreet ThursdayAugust22,201312:00pmFordenStation,505CandoStreet ThursdaySeptember26,201312:00pmFordenStation,505CandoStreet ThursdayOctober24,201312:00pmFordenStation,505CandoStreet ThursdayNovember21,201312:00pmFordenStation,505CandoStreet ThursdayDecember19,201312:00pmFordenStation,505CandoStreet CFPTA Agenda Packet 12/20/20127 Digital Recorders - Confidential Pricing Digital Recorders A DRI Company (NASDAQ: TBUS) 4018 Patriot Drive June 13, 2011 One Park Center, Suite 100 FIRM PRICING Durham, NC 27709 WAVE Transit Amanda Boswell Attention: Matt Kunic 1110 Castle Street SE Sales Manager Wilmington, NC 28401Phone: (919) 313-3089 Email: mkunic@wavetransit.comFax: 919.361.2947 Phone : (910) 343-0106 Email: amandab@digrec.com FIRM PRICING Quotation #06121100 Pricing Valid till September 13, 2011 Line ItemQuantityPart NumberDescriptionUnit PriceExtended Price AVL Software Maintenance Program 11Advance II Package: Data & Functional Paritioning$28,125$28,125 21DR XML Data Feed for 3rd Party Developers$15,000$15,000 $43,125 Total AVL Software Packages Quote Assumptions & Notes: 1. Shipping is FOB Shipping Point. Customer will be invoiced a 2. Quote does not includes any taxes unless reflected on line i 3. Features are only available in AVL Software release 2.8.2 4. Software Upgrade is required for WAVE Transit to support abo Digital RecordersConfidential Pricing CFPTA Agenda Packet 12/20/20128 Digital Recorders - Confidential Pricing Terms: Signed: ____________________________________ Accepted by Purcha Digital RecordersConfidential Pricing CFPTA Agenda Packet 12/20/20129 Cape FearPublic Transportation Authority A Component Unit of the City of Wilmington Financial and Compliance Reports Year Ended June 30, 2012 CFPTA Agenda Packet 12/20/201210 Contents Financial Section Independent Auditor's Report 1 - 2 Management's Discussion and Analysis (Unaudited) 3 - 7 Basic Financial Statements: Statement of net assets 9 Statement of revenue, expenses and changes in fund net assets 10 Statement of cash flows 11 - 12 Notes to basic financial statements 13 - 22 Supplementary Financial Information: Schedule of revenue and expenditures, annual budget and actu modified accrual basis, Operating Fund 23 - 24 Schedule of revenue and expenditures, annual budget and actu modified accrual basis, Capital Project Fund 25 Internal Control and Compliance Section Internal Control Over Financial Reporting and on Compliance and Based on an Audit of Financial Statements Performed in Accordanc with Government Auditing Standards 27 - 28 Compliance With Requirements That Could Have a Direct and Materi Effect on Its Major Federal Program and on Internal Control Over Compliance in Accordance With OMB Circular A-133 and the State Audit Implementation Act29 - 30 Compliance With Requirements That Could Have a Direct and Materi Effect on Its Major State Program and on Internal Control Over in Accordance With Applicable Sections of OMB Circular A-133 an State Audit Implementation Act31 - 32 Schedule of Findings and Questioned Costs33 - 35 Corrective Action Plan36 Summary Schedule of Prior Audit Findings37 Schedule of Expenditures of Federal and State Awards38 Notes to the Schedule of Expenditures of Federal and State Award39 CFPTA Agenda Packet 12/20/201211 FINANCIAL SECTION Report of Independent Certified Public Accountants Mana Basic Financial Statements Notes to Basic Financial Statements Supplementary Financial Information CFPTA Agenda Packet 12/20/201212 (This Page Was Intentionally Left Blank) CFPTA Agenda Packet 12/20/201213 Board of Directors Cape Fear Public Transportation Authority Wilmington, North Carolina We have audited the accompanying basic financial statements of C Authority, a component unit of City of Wilmington, North Carolin 2012, as listed in the table of contents. These financial statement financial statements based on our audit. We conducted our audit in accordance with auditing standards gen America and the standards applicable to financial audits contain Government Auditing Standards, issued by the Comptroller General of the United States. Those s perform the audit to obtain reasonable assurance about whether t material misstatement. An audit includes consideration of intera basis for designing audit procedures that are appropriate in the expressing an opinion on the effectiveness of Cape Fear Public Ttrol over financial reporting. Accordingly, we express no such opini An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in assessing the accounting principles used and the significant est evaluating the overall financial statement presentation. We bel basis for our opinion. In our opinion, the financial statements referred to above prese financial position of Cape Fear Public Transportation Authority its financial position and its cash flows for the year then ende generally accepted in the United States of America. In accordance with Government Auditing Standards, we have also issued our report dated November 21, 2012 reporting and on our tests of its compliance with certain provisand grant agreements and other matters. The purpose of that report internal control over financial reporting and compliance and the an opinion on the internal control over financial reporting or o of an audit performed in accordance with Government Auditing Standards and should be considered in assessing the results of our audit. 1 CFPTA Agenda Packet 12/20/201214 Discussion and Analysis and the budgetary comparison information respectively, be presented to supplement the basic financial sta a part of the basic financial statements, is required by the Gov who considers it to be an essential part of financial reporting an appropriate operational, economic, or historical context. We h to the required supplementary information in accordance with aud the United States of America, which consisted of inquiries of ma our inquiries, the basic financial statements, and other knowled basic financial statements. We do not express an opinion or pro because the limited procedures do not provide us with sufficient provide any assurance. Our audit was conducted for the purpose of forming an opinion on accompanying schedules presented as supplementary financial info expenditures of federal and State awards as required by the U.S. Circular A-133 Audits of States, Local Governments, and Non-Profit Organizations,and the State Single Audit Implementation Act are presented for purposes of additionaand are not a required part of the basic financial statements. Such information is the respons from and related directly to the underlying accounting and other statements. The information has been subjected to the auditing basic financial statements and certain additional procedures, in information directly to the underlying accounting and other reco statements or to the financial statements themselves, and other auditing standards generally accepted in the United States of Am presented as supplementary financial information and the schedul Awards are fairly stated in all material respects in relation to Wilmington, North Carolina November 21, 2012 2 CFPTA Agenda Packet 12/20/201215 CFPTA Agenda Packet 12/20/201216 (This Page Was Intentionally Left Blank) CFPTA Agenda Packet 12/20/201217 Cape Fear Public Transportation Authority (Unaudited) June 30, 2012 As management of Cape Fear Public Transportation Authority , we offer readers of the is narrative overview and analysis of the financial activities o Authority for the fiscal year ended June 30, 2012. Financial Highlights The assets of the Authority exceeded its liabilities at the clo10,739,354 (net assets). Thsed by $1,361,155 during the fiscal year. The Authority had an operating loss of $(6,529,726). Capital asset additions, including construction in process, tot The Authority had no long-term debt outstanding as of June 30, 12. Overview of the Financial Statements This discussion and analysis are intended to serve as an introdu The financial statements of the Authority consist of three components. They are as follows: Basic Financial Statements Notes to the Financial Statements The Basic Financial Statements are prepared using the accrual ba They consist of three statements, as required for entities engaged only in business-type activities. The first statement is the statement of net assets. Assets and and long-term. This statement provides a s obligations to creditors. Liquidity and financial flexibility c in this statement. The next statement is the statement of revenue, expenses, and ch statement is used in evaluating whether the Authority has recove information is used in determining credit worthiness. The final required statement is the statement of cash flows. Th outflows in the following categories: operating, investing, cap financing activities. Based on this data, the user can determin and the change in cash. The notes to the financial statements provide more detailed info with the statements. After the Notes, supplementary financial information is provided dgetary information. 3 CFPTA Agenda Packet 12/20/201218 Cape Fear Public Transportation Authority (Unaudited) June 30, 2012 Financial Analysis Fiscal year 20102011 saw the Authority complete the construction of the new transfer administrative office on Cando Street. A discussion of major financial developments follows. NNet assets invested in capital assets totaled $11,031,464 which comprises vehicles, equipment, buildings, other improvements, construction in progress, and land. This is the ms net assets as of June 30, 2012. Unrestricted net assets have no restrictions on their use. Cape Fear Public Transportation Authority Condensed Statement of Net Assets Figure 1 June 30, 2012 2011 $ 610,448 Current assets$ 951,855 11,031,464 Capital assets, net 11,824,956 11,641,912 Total assets 12,776,811 902,558 Current liabilities 676,302 Net assets: 11,031,464 Invested in capital assets 11,824,956 (292,110) Unrestricted (deficit) 275,553 $ 10,739,354 Total net assets$ 12,100,509 A comparison of the statement of net assets to the prior year sh ($1,361,155) resulting primarily from operating losses. Total assets decreased by ($1,134,899) and liabilities increased by $226,256 from the prior year. The statement of revenue, expenses, and changes in net assets fo operating expenses exceeded operating revenue and non-operating The Authority earned $2,604,900 in transportation service fares . Capital contributions consisting of federal, State and local grants totaled $451,401 for the year ended June 30, 2012. Operating grants and contributions totaled $4,777,575. 4 CFPTA Agenda Packet 12/20/201219 Cape Fear Public Transportation Authority (Unaudited) June 30, 2012 Condensed Statement of Revenue, Expenses and Change in Fund Net Assets Figure 2 Year Ended June 30, 2012 2011 $ 2,604,900 Operating revenue$ 2,474,755 9,134,626 Operating expenses 8,709,529 (6,529,726) Operating loss (6,234,774) 4,717,170 Nonoperating revenue (expense) 4,872,613 (1,812,556) Loss before capital contributions (1,362,161) 451,401 Capital Contributions 4,473,277 $ (1,361,155) Increase (decrease) in net assets$ 3,111,116 For the year ended June 30, 2012, the decrease in net assets is primarily due to an operating loss Authority had an operating loss of ($6,529,726) from its operations, non-operating revenue of $4,717,170 and had capital contributions of $451,401. Capital contributions were primarily for the acquisition and engineering fees related to the construction of a new mainte The Authority received a total of $1,213,428 from its primary government, City of Wilmington, North Carolinahe reminder of the Carolina Department of Transportation and New Hanover County. expenses increased by $425,097 over the prior year primarily due to increases in salaries oil costs, maintenance and repair costs, depreciation, and insurance costs. 5 CFPTA Agenda Packet 12/20/201220 Cape Fear Public Transportation Authority (Unaudited) June 30, 2012 Capital Assets. The undepreciated cost Authority capital assets consisted of the 2012. June 30, 2012 Capital Assets2011 $ 2,717,404 Land$ 2,389,453 5,428,224 Buildings and improvements 5,428,224 8,692,512 Buses 9,084,034 1,575,801 Other vehicles 1,575,801 1,495,262 Furniture, fixtures, machinery and equipment 1,495,262 188,288 Construction in progress 4,838 $ 20,097,491 Total$ 19,977,612 The Authority capital asset additions during the year ended June $327,951 for the purchase of land adjacent to the operations ce constructing a new maintenance facility. $183,450 in engineering fees related to the construction of the See Note 5 in the notes to financial statements for additional i Long-Term Debt . The Authority had no outstanding debt as of June 30, 2012. Economic Factors The Authority serves customers primarily in New Hanover County b Counties. New Hanover County currently has an estimated population of 202, amount 106,882 reside in the City of Wilmington which is the Aut unemployment rate in the City is 10.0% which is higher than the and the federal unemployment rate. The Authority is impacted by a number of dif in consideration when approving budgets. Potential budget reduct potential reductions in federal transit funding are being closel fuel costs. However, the Board and management are prepared to r All 6 CFPTA Agenda Packet 12/20/201221 Cape Fear Public Transportation Authority (Unaudited) June 30, 2012 Requests for Information area. Questions concerning any of the information found in this information should be directed to the Executive Director, Cape F Forden Station, 505 Cando Street, Wilmington NC, 28405 Albert Eby, Executive Director Cape Fear Public Transportation Authority Wilmington, North Carolina 7 CFPTA Agenda Packet 12/20/201222 (This Page Was Intentionally Left Blank) 8 CFPTA Agenda Packet 12/20/201223 BASIC FINANCIAL STATEMENTS CFPTA Agenda Packet 12/20/201224 (This Page Was Intentionally Left Blank) CFPTA Agenda Packet 12/20/201225 Cape Fear Public Transportation Authority Statement of Net Assets June 30, 2012 Assets Current Assets Cash and cash equivalents (Note 3) $ 46,023 Accounts receivables (Note 7) 13,478 Due from other governments (Note 4) 462,776 Inventory of material and supplies 88,171 Total current assets 610,448 Noncurrent Assets Capital assets (Note 5) Land 2,717,404 Building and improvements 5,428,224 Buses 8,692,512 Other vehicles 1,575,801 Furniture, fixtures, machinery and equipment 1,495,262 Construction in progress 188,288 20,097,491 Less accumulated depreciation (9,066,027) Total capital assets 11,031,464 Total assets 11,641,912 Liabilities Current Liabilities Accounts payable Trade 676,721 Compensated absences payable 152,701 Accrued expenses 73,136 Total current liabilities 902,558 Commitments and Contingencies (Notes 6, 8, 9 and 10) Net Assets Invested in capital assets 11,031,464 Unrestricted (deficit) (292,110) Total net assets $ 10,739,354 See Notes to Basic Financial Statements. 9 CFPTA Agenda Packet 12/20/201226 Cape Fear Public Transportation Authority Statement of Revenue, Expenses and Changes in Fund Net Assets Year Ended June 30, 2012 Operating revenue Charges for services (Note 7) $ 2,604,900 Operating expenses Labor 4,172,550 Fringe benefits 791,504 Fuel and lubricants 1,048,358 Purchased services (Note 10) 462,779 Repairs and maintenance 465,970 Insurance 537,074 Advertising 20,715 Tires and tubes 126,600 Taxicabs 10,498 Utilities 83,593 Materials and supplies 16,585 Office supplies 5,261 Other operating expenses 88,246 Depreciation 1,304,893 Total operating expenses 9,134,626 Operating loss (6,529,726) Nonoperating revenue (expense) Federal grants 2,386,936 State grants 1,044,272 Operating subsidy from primary government 1,213,428 Operating subsidy from other governments 132,939 Interest income 34 Miscellaneous income 63,488 Gain on disposition of capital assets 8,073 Settlement costs (32,000) Route restructuring plan (100,000) Total nonoperating revenue 4,717,170 Loss before capital contributions (1,812,556) Capital contributions Federal grants 148,490 State grants 301,955 Primary government 956 Total capital contributions 451,401 Decrease in net assets (1,361,155) Net assets, beginning 12,100,509 Net assets, ending $ 10,739,354 See Notes to Basic Financial Statements. 10 CFPTA Agenda Packet 12/20/201227 Cape Fear Public Transportation Authority Statement of Cash Flows Year Ended June 30, 2012 Cash Flows From Operating Activities $ 2,843,938 Cash received from customers and users (2,718,138) Cash payments to suppliers for goods and services (4,897,869) Cash payments to or on behalf of employees Net cash used in operating activities (4,772,069) Cash Flows From Noncapital Financing Activities Operating grants 3,431,208 Operating subsidy from primary government 1,213,428 Operating subsidies from other governments 132,939 Miscellaneous 63,488 Settlement costs (32,000) Route restructuring plan (100,000) Net cash provided by noncapital financing activities 4,709,063 Cash Flows From Capital and Related Financing Activities Proceeds from sale of capital assets 8,073 Acquisition of capital assets (511,401) Capital contributions 451,401 Net cash used in capital and related financing activities (51,927) Cash Flows From Investing Activities Interest on investments 34 Net decrease in cash and cash equivalents (114,899) Cash and cash equivalents Beginning 160,922 Ending $ 46,023 (Continued) 11 CFPTA Agenda Packet 12/20/201228 Cape Fear Public Transportation Authority Statement of Cash Flows (Continued) Year Ended June 30, 2012 Reconciliation of operating loss to net cash used in operating activities: Operating loss $ (6,529,726) Adjustments to reconcile operating loss to net cash used in operating activities: Depreciation 1,304,893 Changes in assets and liabilities: Accounts receivable 239,038 Inventory (12,530) Accounts payable 254,867 Compensated absences payable 66,185 Accrued expenses (94,796) $ (4,772,069) Net cash used in operating activities See Notes to Basic Financial Statements. 12 CFPTA Agenda Packet 12/20/201229 NOTES TO BASIC FINANCIAL STATEMENTS CFPTA Agenda Packet 12/20/201230 (This Page Was Intentionally Left Blank) CFPTA Agenda Packet 12/20/201231 Cape Fear Public Transportation Authority Notes to Basic Financial Statements Note 1. Summary of Significant Accounting Policies The accounting policies of Cape Fear Public Transportation Autho accounting principles (GAAP) as applicable to governments. The Board (GASB) is the accepted standard setting body for establishand financial reporting principles. The following is a summary of t Reporting Entity: Cape Fear Public Transportation Authority (the Authority) ,opera created in 2005 by a concurrent resolution of New Hanover County (City). The interlocal agreement adopted by the County and City transportation facilities and transportation services throughout outside its corporate limits and effectively merged the transpor the County and City. The interlocal agreement between the Count term of two years beginning July 1, 2004, may be terminated upon party. Unless notice of termination is provided, the agreement successive five year terms. The agreement is currently in effec. The Authority is governed by an eleven member board. The Author appointed by the County, five members appointed by the City, and County and City from a human service agency served by the public Each proposed annual budget shall be submitted to the County and Commissioners and City Council. The County and City shall provi their budgets permit. Any debt necessary for the maintenance, i Authority shall be incurred by the County or City for the benefi 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 provides that the City will (a) make available to the Authority appropriation approved in the adopted City budget, and (b) allow received awarded federal and/or State operating funds. The agre written consent of the parties or upon the lack of an award or t to the Authority. For financial reporting purposes, in conformi Authority is a component unit of the City and is included financial report. Basis of Presentation: All activities of the Authority are accounted for within a singl proprietary (enterprise) fund. Enterprise funds may be used to 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 fees and charges of the activity. Debt that is secured by a pled and charges and the full faith and credit of a related primary government or co even if that government is not expected to make any paymentsis not payable solely from fees and charges of the activity. (Some debt may be secured, in proceeds but should be considered as payable "solely" from the r 13 CFPTA Agenda Packet 12/20/201232 Cape Fear Public Transportation Authority Notes to Basic Financial Statements Note 1. Summary of Significant Accounting Policies (Continued) b. Laws or regulations require that the activity's costs of prov (such as depreciation or debt service), be recovered with fees a taxes or similar revenues. c. The pricing policies of the activity establish fees and charg including capital costs (such as depreciation or debt service). Measurement Focus and Basis of Accounting: In accordance with North Carolina General Statutes, the Authorit during the year using the modified accrual basis of accounting, statements in accordance with GAAP as applied to governmental en The accounting and financial reporting treatment applied to a fu focus. Enterprise activities are accounted for on the flow of e on the accrual basis of accounting. Under the accrual basis of earned and expenses are recorded at the time liabilities are inc flows take place. Nonexchange transactions, in which the Author directly receiving (or giving) equal value in exchange, include and donations is recognized in the fiscal year in which all elig Enterprise funds distinguish operating revenues and expenses from revenues and expenses generally result from providing services a tions. 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 and other operating expense. All revenues and expenses not meeting this definition are report nonoperating revenues and expenses. Under the terms of grant and loan agreements, the Authority fund expenditures by a combination of specific cost-reimbursement graand operating revenues. Thus, when operating and capital expenditur restricted and unrestricted net assets available to finance thes to first apply cost-reimbursement grant resources to fund these formula grants and then by operating revenues. As permitted by GAAP, the Authority has elected to apply only ap interpretations issued before November 30, 1989 in its accountin Budgets: Budgets are adopted utilizing the modified accrual basis of acco annual budget ordinance is adopted for the operating fund (subfu. All annual appropriations lapse at fiscal year end. A project budget ordinance is adopted for the Project appropriations lapse at the completion of the project. 14 CFPTA Agenda Packet 12/20/201233 Cape Fear Public Transportation Authority Notes to Basic Financial Statements Note 1. Summary of Significant Accounting Policies (Continued) Expenditures may not legally exceed appropriations at the fund l fund level for the capital project fund. Any appropriations whi appropriations for a fund must be approved by the Board of Direc Commissioners. The budget may be amended as necessary by the go is included in the North Carolina General Statutes which prescri the budget procedure are to be performed. The following schedul the date by which each is required to be completed. April 30 Each department head will transmit to the budget office estimates for their department for the budget year. June 1 The budget and the budget message shall be submitted to t public hearing on the budget should be scheduled at this time. July 1 The budget ordinance shall be adopted by the governing b Cash and Cash Equivalents: The Authority considers all highly liquid investments (including months or less when purchased to be cash equivalents. Deposits and Investments: All deposits of the Authority are made in board-designated offic required by State statute [G.S. 159-31]. Official depositories may be established with any bank or savings and loan association whose principal office is located i establish time deposit accounts such as NOW and SuperNOW account certificates of deposits. State statute [G.S. 159-30 (c)] authorizes the Authority to invest in obligations of the Un obligations fully guaranteed both as to principal and interest State of North Carolina; bonds and notes of any North Carolina l obligations of certain non-guaranteed federal agencies; certain of the NCCMT cash portfolio, a SEC-registered (2a-7) money marke Accounts Receivables: Accounts receivables include grant receivables for which eligibi Management evaluates receivables by identification of troubled a experience. Management has determined that all receivables are doubtful accounts is required. Inventory of Material and Supplies: Materials (principally maintenance parts) and supplies inventori first out) or market. 15 CFPTA Agenda Packet 12/20/201234 Cape Fear Public Transportation Authority Notes to Basic Financial Statements Note 1. Summary of Significant Accounting Policies (Continued) Capital Assets and Construction in Progress: Capital assets are defined by the government as assets with an i and estimated useful life in excess of two years. All purchased at the time of acquisition, with cost including any net construc Donated capital assets are valued at their estimated or appraised fair market value on not capitalized. The Authoassets include a transfer facility, garage and maintenance facilities, buses, other vehicles, certain equipment, land and c Depreciation is charged to operations using a straight-line meth useful lives: Estimated Asset classuseful lives Building and improvements40 years Buses10 - 12 years Other vehicles5 - 7 years Furniture, fixtures, machinery and equipment 5 - 10 years The Authority may consider capital assets impaired if both (a) t asset is large in magnitude and (b) the event or change in circu of the capital asset. Impaired assets will be appropriately red Authority owns no significant assets that would be considered im Compensated Absences: As more fully described in Note 10, the Authority contracts with a management company to provide management services, including the furnishing of certain employe equipment. As of June 30, 2012, the Authority recorded a liabil benefits for employees of the management company and the Authori provides for the accumulation of up to thirty days earned vacati been fully vested when earned. The Authority has adopted a last-in first out method of accumula accumulated leave time which is expected to be liquidated after to be material and, therefore no provision for noncurrent compen financial statements. ccumulation of up to a maximum of seventy-five days for employees of the management company and indefinitely for Authori vest. The Authority has no obligation for accumulated sick leav accrual for sick leave has been made. The management company pr employees that are reimbursed by agreement. 16 CFPTA Agenda Packet 12/20/201235 Cape Fear Public Transportation Authority Notes to Basic Financial Statements Note 1. Summary of Significant Accounting Policies (Continued) Net Assets: Net assets consist of the following: - Invested in capital assetsThis component of net assets reflects amounts expended for capit, net of related debt, if any. - Unrestricted net assets This component of net assets consists of net assets that do not definition of restricted or invested in capital assets. Use of Estimates: The preparation of financial statements requires management to m affect the reported amounts of assets, liabilities, and disclosu date of the financial statements and the reported amounts of rev period. Actual results could differ from those estimates. The estimation of lives of the capital assets and valuation of receivables for collectability. Note 2. Stewardship, Compliance, and Accountability During the fiscal year, the Authority did not have a pre-audit certification on its purchase orders to be signed by the finance officer or his deputy thereon, as required evidenced by a contract or agreement requiring the payment of mo supplies and materials, the contract, agreement or purchase orde stating that the instrument has been pre-audited in accordance w add the certification to its purchase orders and authorize the p the deputy finance officer. Excess of expenditures over appropriations: Expenditures which exceeded the legal level of control at the fu fund by $160,670. The majority of the overage was a result of a one-time charge re restructuring plan in addition to the settlement of a lawsuit in respectively. excess expenditures are accounted for properly. 17 CFPTA Agenda Packet 12/20/201236 Cape Fear Public Transportation Authority Notes to Basic Financial Statements Note 3. Cash and Cash Equivalents At June 30, 2012, cash and cash equivalents is comprised of the Deposits: All the deposits of North Carolina local governments are either two methods. Under the Dedicated Method, all deposits that exce Under the Pooling Method, which is a statewide collateral pool, Treasurer is acting in a fiduciary capacity for the Authority, t ents in their name. The amount of the pledged collateral is bas averaging method for non-interest bearing deposits and the actua deposits. Depositories using the Pooling Method report to the S 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 pledged for the Authority under the Pooling Method, the potentia this risk may increase in periods of high cash flows. However, enforces strict standards of financial stability for each deposi the Pooling method. The Authority has no formal policy regardin but relies on the State Treasurer to enforce standards of minimuod financial institutions and to monitor them for compliance. The G.S. 159-31 when designating official depositories and verifying At June 30, 2012, the d a carrying amount of $44,042 and a bank balance of $206,500. Of the bank balance, $206,500 was covered by federal d Cash on hand: 2 consisted of various petty cash funds totaling $1,138. Investments: At June 30, 2012, the Authoritys consisted of $843 in North Carolina Capital Management no policy for management interest rate or credit risk. Note 4. Due from other governments The amount due from other governments as of June 30, 2012 consis State operating grant revenues$ 34,995 Federal operating grant revenues 228,915 Local government sales and use taxes 36,664 Other local government receivables 162,202 $ 462,776 18 CFPTA Agenda Packet 12/20/201237 Cape Fear Public Transportation Authority Notes to Basic Financial Statements Note 5. Capital Assets Capital asset activity for the year ended June 30, 2012 was as follows: Balance Balance AdditionsDeletionsJune 30, 2012 June 30, 2011 Capital assets not being depreciated: $ 327,951 $ -$ 2,717,404 Land$ 2,389,453 183,450 - 188,288 Construction in progress 4,838 511,401 - 2,905,692 2,394,291 Capital assets being depreciated: - - 5,428,224 Buildings and improvements 5,428,224 - (391,522) 8,692,512 Buses 9,084,034 - - 1,575,801 Other vehicles 1,575,801 Furniture, fixtures, machinery - - 1,495,262 and equipment 1,495,262 - - 17,191,799 Total capital assets being depreciated 17,583,321 Less accumulated depreciation for: (164,986) - (726,508) Buildings and improvements (561,522) (890,009) 391,522 (6,156,980) Buses (5,658,493) (145,729) - (1,359,806) Other vehicles (1,214,077) Furniture, fixtures, machinery (104,169) - (822,733) and equipment (718,564) (1,304,893) 391,522 (9,066,027) Total accumulated depreciation (8,152,656) Total capital assets being depreciated, net 8,125,772 9,430,665 $ 11,031,464 Capital assets, net$ 11,824,956 Note 6. Retirement Plans Plan Description. System (LGERS), a cost-sharing multiple-employer defined benefit State of North Carolina. LGERS provides retirement and disabili beneficiaries. Article 3 of G.S. Chapter 128 assigns the author provisions to the North Carolina General Assembly. LGERS is inc and required supplementary information to LGERS. That report ma of the State Controller, 1410 Mail Service Center, Raleigh, Nort 707-0500. 19 CFPTA Agenda Packet 12/20/201238 Cape Fear Public Transportation Authority Notes to Basic Financial Statements Note 6. Retirement Plans (Continued) Funding Policy: Plan members are required to contribute six percent of their ann Authority is required to contribute at an actuarial determined r 6.35% of annual covered payroll. The contribution requirement o Transportation Authority is established and may be amended by th 2, 2011 and 2010 were $67,353 $33,190, and $10,007, respectively. The contributions made by the Author contributions for each year. Supplemental Retirement Income Plan of North Carolina Plan Description. The Authority contributes to the Supplemental Retirement Inco Carolina (Plan), a section 401(k) defined contribution pension p and administered by the Prudential Insurance Company of America. benefits for all employees that have elected to become members o Funding Policy. The Authority has elected to contribute on behalf of all empl employee contributions up to 4.5% of eligible compensation. Aut employees were $10,286 for the year ended June 30, 2012. The pl on part of all employees of not less than 1% of eligible compens employees were $12,911 for the year ended June 30, 2012. Note 7. Major Customers ract revenues. Transactions with various governmental agencies accounted for the following revenues and r 2012: Percentage of Accounts CustomerRevenuesOperating RevenuesReceivable University of North Carolina at Wilmington$ 832,30332.0%$ - New Hanover County Department of Social Services 650,92925.0% 1,968 New Hanover County Department of Aging 141,3055.4% - New Hanover County Other Agencies 9,9200.4% - $ 1,634,457$ 1,968 Note 8. Contingencies The Authority receives significant operating and capital grants Under the terms of federal and state grants, monitoring and peri may be questioned as not being appropriate expenditures under th s disallowances arising from such audits, if any, will not be sign moneys have been made in the accompanying financial statements. 20 CFPTA Agenda Packet 12/20/201239 Cape Fear Public Transportation Authority Notes to Basic Financial Statements Note 8. Contingencies (Continued) Also, under the terms of federal and State assistance programs, r entirely with federal or State funds have asset disposition rest assets or proceeds from the approved sales in accordance with fe At June 30, 2012, the Authority was a party to various legal dis Aut, the ultimate effect of these matters will not have a material Note 9. Risk Management The Authority is exposed to various risks of loss related to tor assets; errors and omissions; injuries to employees; and natural The Authority is a participant in two self-funded risk financing Association of County Commissioners (NCACC). Through these pool major policies and their limits: general liability ($2 million), occurrence), automobile liability ($2 million), public officials liability ($2 million), excess liability ($3 million) and limits. Two of the pools are reinsured through a multi-state public enti losses in excess of $500,000 up to a $2 million limit for liabil losses in excess of $50,000 per occurrence for property, auto ph single occurrence losses of $350,000 for workers' compensation. The Authority carries health and dental In accordance with G.S. 159-29, the Authority at any given time of the Authority surety bond. The Director of Finance is bonded for $250,000. The remaining employees that have access t bonded under a blanket bond for $250,000. The Authority carries flood insurance through the North Carolina with a $5,000,000 annual aggregate coverage subject to a $25,000 A and V. Annual aggregate coverage for flood zones A and V is $ $500,000 for buildings and $500,000 for personal property. Note 10. Management Agreement The Authority retains a transit management company to provide ma for the transportation system. For the year ended June 30, 2012 contract with First Transit, Inc. (FTI), who shall employ, furni necessary for the management and operation of the public transpo agreement provides for assistance with certain other managerial to-day operations of the Authority. For the year ended June 30, 2012, totaling $212,500 which is included in purchased services. The contract with FTI is for two more years and provides for minimum payments of $141,625 and $145,874 for t 2014, respectively. 21 CFPTA Agenda Packet 12/20/201240 Cape Fear Public Transportation Authority Notes to Basic Financial Statements Note 11. Pronouncements Issued but Not Yet Effective The GASB has issued several pronouncements prior to June 30, 201 impact future financial presentations. Management has not currently determined what, if any, impact imp statements may have on the financial statements of the Authority G Authority beginning with its year ending June 30, 2013. Omnibus An Amendment of GASB Statements No. 14 and 3 ending June 30, 2013. Contained in Pre-ive for the Authority beginning with its year ending June 30, 2013. ear ending June 30, 2013. effective for the Authority beginning with its year ending June 2012 An Amendment of GASB June 30, 2014. An Amendment of GASB Authority beginning with its year ending June 30, 2014. An ending June 30, 2015. 22 CFPTA Agenda Packet 12/20/201241 SUPPLEMENTARY FINANCIAL INFORMATION CFPTA Agenda Packet 12/20/201242 (This Page Was Intentionally Left Blank) CFPTA Agenda Packet 12/20/201243 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, 2012 Variance, Positive BudgetActual(Negative) Operating revenues $ 1,884,000 $ 1,667,617 $ (216,383) Farebox revenues 937,839 892,482 (45,357) Government contracted services 46,000 44,801 (1,199) Other operating revenues Total operating revenues 2,867,839 2,604,900 (262,939) Operating expenditures 4,106,365 Labor 791,504 Fringe benefits 1,048,358 Fuel and lubricants 462,779 Purchased services 465,970 Repairs and maintenance 537,074 Insurance 20,715 Advertising 126,600 Tires and tubes 10,498 Taxicabs and leases 83,593 Utilities 16,585 Materials and supplies 5,261 Office supplies 88,246 Other operating expenses Total operating expenditures 7,801,063 7,763,548 37,515 Excess of operating expenditures (4,933,224) (5,158,648) (225,424) under operating revenues (Continued) 23 CFPTA Agenda Packet 12/20/201244 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, 2012 Variance, Positive BudgetActual(Negative) Nonoperating revenues $ 2,386,936 $ (109,240) $ 2,496,176 Federal grants 1,044,272 2,153 1,042,119 State grants 1,213,428 38,428 1,175,000 Operating subsidy from primary government 132,939 10 132,929 Operating subsidies from other governments 63,522 (23,478) 87,000 Other income (32,000) (32,000) - Settlement costs (100,000) (100,000) - Route restructuring plan Total nonoperating revenues 4,933,224 4,709,097 (224,127) Deficiency of revenues under expenditures$ - (449,551) $ (449,551) Reconciliation: modified accrual basis with full accrual: 451,401 Capital outlay (1,304,893) Depreciation 8,073 Gain on disposal of capital assets (66,185) Compensated absences $ (1,361,155) Decrease in net assets 24 CFPTA Agenda Packet 12/20/201245 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, 2012 TotalActual CurrentTotal ProjectPrior YearTo Date EstimatesYears Revenue Restricted intergovernmental: Federal grants$ 7,049,793 $ 7,432,797 $ 148,490 $ 7,581,287 State grants 4,181,766 3,284,729 301,955 3,586,684 Primary government 743,478 685,203 956 686,159 Other governments 569,208 249,449 - 249,449 Total revenue 12,544,245 11,652,178 451,401 12,103,579 Expenditures N.C. Moving Ahead 3,518,350 2,368,448 323,781 2,692,229 - 261,594 Section 5307 Capital 304,386 261,594 5,529,966 Section 5309 Capital 5,261,560 5,529,966 - 187,620 933,688 Section 5311 Capital 777,952 746,068 - 89,509 Section 5317 Capital 89,509 89,509 - 560,263 Advanced Technology Program 240,000 560,263 2,253,599 American Recovery and Reinvestment Act 2,490,960 2,253,599 - Total expenditures 511,401 12,320,848 12,682,717 11,809,447 Excess of expenditures over revenues (60,000) (217,269) (138,472) (157,269) Other financing sources - 43,782 Transfer from operating fund 138,472 43,782 Total other financing sources - 43,782 138,472 43,782 Excess of revenues under expenditures and other financing sources $ -$ (113,487) $ (60,000) $ (173,487) 25 CFPTA Agenda Packet 12/20/201246 (This Page Was Intentionally Left Blank) 26 CFPTA Agenda Packet 12/20/201247 INTERNAL CONTROL and COMPLIANCE SECTION CFPTA Agenda Packet 12/20/201248 (This Page Was Intentionally Left Blank) CFPTA Agenda Packet 12/20/201249 on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of Basic Financial Statements Performed in Accordance With Government Auditing Standards To the Board of Directors Cape Fear Public Transportation Authority Wilmington, North Carolina We have audited the financial statements of Cape Fear Public Tra year ended June 30, 2012, and have issued our report thereon dat2012. We conducted our audit in accordance with auditing standards genera America and the standards applicable to financial audits contain Government Auditing Standards, issued by the Comptroller General of the United States. Internal Control Over Financial Reporting Management of Cape Fear Public Transportation Authority is respo effective internal control over financial reporting. In planning ernal control over financial reporting as a basis for designing our auditing procedures for the purpose of expressing but not for the purpose of expressing an opinion on the effectiv A deficiency in internal control exists when the design or opera management or employees, in the normal course of performing thei detect and correct misstatements on a timely basis. A material combination of deficiencies, in internal control such that there timely basis. Our consideration of internal control over financial reporting w first paragraph of this section and was not designed to identify financial reporting that might be deficiencies, significant defi identify any deficiencies in internal control over financial rep weaknesses, as defined above. However, we identified a certain deficiency in internal control over financial reporting, described in item 2012-1 in the accompanying schedule of findings and questioned costs, that we consider to be a significant deficiency in internal control over financial report significant deficiency is a deficiency, or combination of defici than a material weakness, yet important enough to merit attentio 27 CFPTA Agenda Packet 12/20/201250 Compliance and Other Matters s financial statements are free of material misstatement, we perfo provisions of laws, regulations, contracts, and grant agreements direct and material effect on the determination of financial sta opinion on compliance with those provisions was not an objective express such an opinion. The results of our tests disclosed one matter that is required to be reported under Government Auditing Standards and which is described in the accompanying schedule of findings and questioned costs as item 2 We noted certain matters that we reported to management of Cape in a separate letter dated November 21, 2012. the accompanying schedule of findings and questioned costs. We This report is intended solely for the information and use of ma members of the Authority, federal and State awarding agencies an Carolina Department of the State Treasurer and is not intended t other than these specified parties. Wilmington, North Carolina November 21, 2012 28 CFPTA Agenda Packet 12/20/201251 on Compliance With Requirements That Could Have a Direct and Material Effect on Each Major Federal Program andon Internal Control Over Compliance in Accordance With OMB Circular A-133 andthe State Single Audit Implementation Act To the Board of Directors Cape Fear Public Transportation Authority Wilmington, North Carolina Compliance We have audited Cape Fear Public Transportation Authority (Authority) 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 the Authority major federal program for the year ended June 30, 2012al program is section of the accompanying schedule of findings and questioned requirements of laws, regulations, contracts, and grants applica We conducted our audit of compliance in accordance with auditing United States of America; the standards applicable to financial Government Auditing Standards, issued by the Comptroller General of the United States; OMB Ci Single Audit Implementation Act. Those standards, OMB Circular Implementation Act require that we plan and perform the audit to whether noncompliance with the types of compliance requirements direct and material effect on a major federal program occurred. procedures as we considered necessary in the circumstances. We reasonable basis for our opinion. Our audit does not provide a compliance with those requirements. In our opinion, Cape Fear Public Transportation Authority compli compliance requirements referred to above that could have a dire federal program for the year ended June 30, 2012. 29 CFPTA Agenda Packet 12/20/201252 Internal Control Over Compliance Management of Cape Fear Public Transportation Authority is respo effective internal control over compliance with the requirements applicable to federal programs. In planning and perform internal control over compliance with the requirements that coul major federal program to determine the auditing procedures for t compliance and to test and report on internal control over compl 133, but not for the purpose of expressing an opinion on the effect compliance. Accordingly, we do not express an opinion on the ef Transportation Authority 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 functions, to prevent, or detect and correct noncompliance with federal program on a timely basis. A material weakness in internal control over compliance is a deficiency, or combination of deficiencies, in internal control reasonable possibility that material noncompliance with a type o program will not be prevented, or detected and corrected, on a t Our consideration of internal control over compliance was for th paragraph of this section and was not designed to identify all d compliance that might be deficiencies, significant deficiencies or material weaknesses. We did not identify any deficiencies in internal control over compliance th material weaknesses, as defined above. This report is intended solely for the information and use of ma members of the Authority, federal and state awarding agencies an Carolina Department of the State Treasurer and is not intended t other than these specified parties. Wilmington, North Carolina November 21, 2012 30 CFPTA Agenda Packet 12/20/201253 Compliance With Requirements That Could Have a Direct and Material Effect on Each Major State Program and on Internal Control Over Compliance in Accordance With Applicable Sections of OMB Circular A-133 and the State Single Audit Implementation Act To the Board of Directors Cape Fear Public Transportation Authority Wilmington, North Carolina Compliance We have audited Cape Fear Public Transportation Authority (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 are applicable to ended June 30, 2012is results section of the accompanying schedule of findings and que requirements of laws, regulations, contracts, and grants applica We conducted our audit of compliance in accordance with auditing United States of America; the standards applicable to financial Government Auditing Standards, issued by the Comptroller General of the United States; applic A-133, as described in the Audit Manual for Government Auditors in North Carolina, and the State Single Audit Implementation Act. Those standards, applicable sections Single Audit Implementation Act require that we plan and perform assurance about whether noncompliance with the types of complian that could have a direct and material effect on a major State pr examining performing such other procedures as we considered necessary in t audit provides a reasonable basis for our opinion. Our audit do In our opinion, Cape Fear Public Transportation Authority compli compliance requirements referred to above that could have a dire program for the year ended June 30, 2012. 31 CFPTA Agenda Packet 12/20/201254 Internal Control Over Compliance Management of Cape Fear Public Transportation Authority is respo effective internal control over compliance with the requirements internal control over compliance with the requirements that coul major State program to determine the auditing procedures for the compliance and to test and report on internal control over compl sections of OMB Circular A-133 and the State Single Audit Implem expressing an opinion on the effectiveness of internal control o express an opinion on the effectiveness of Cape Fear Public Tran over compliance. A deficiency in internal control over compliance exists when the compliance does not allow management or employees, in the normal functions, to prevent, or detect and correct noncompliance with State program on a timely basis. A material weakness in interna or combination of deficiencies, in internal control over complia possibility that material noncompliance with a type of complianc be prevented, or detected and corrected, on a timely basis. Our consideration of internal control over compliance was for th paragraph of this section and was not designed to identify all d compliance that might be deficiencies, significant deficiencies,es. We did not identify any deficiencies in internal control over compliance th as defined above. This report is intended solely for the information and use of ma members of the Authority, and federal and State awarding agencie North Carolina Department of the State Treasurer and is not inte anyone other than these specified parties. Wilmington, North Carolina November 21, 2012 32 CFPTA Agenda Packet 12/20/201255 Cape Fear Public Transportation Authority Schedule of Findings and Questioned Costs For the Fiscal Year Ended June 30, 2012 Section 1. Summary of Independent Financial Statements Unqualified Internal control over financial reporting: Material weakness(es) identified? Yes No Significant deficiency(ies) identified? Yes None Reported Noncompliance material to financial statements noted? Yes No Federal Awards Internal control over major federal programs: Material weakness(es) identified? Yes No Significant deficiency(ies) identified? Yes None Reported major federal program: Unqualified Any audit findings disclosed that are required to be reported in accordance with Section 510(a) of Circular A-133? Yes No Identification of major federal program: Program Name CFDA Federal Transit Formula Grant (Urbanized Area Formula Planning Cluster/Capital investment Grants 20.507/20.500 Dollar threshold used to distinguish between Type A and Type B Programs $300,000 Auditee qualified as low-risk auditee? Yes No (Continued) 33 CFPTA Agenda Packet 12/20/201256 Cape Fear Public Transportation Authority Schedule of Findings and Questioned Costs (Continued) For the Fiscal Year Ended June 30, 2012 State Awards Internal control over major State programs: Material weakness(es) identified? Yes No Significant deficiency(ies) identified? Yes None Reported major State program: Unqualified Any audit findings disclosed that are required to be reported in accordance with State Single Audit Implementation Act Yes No Identification of major State program: Program Name State ID Number State Maintenance Assistance Program DOT 9 Section 2. Financial Statement Findings Finding 12-1 Significant Deficiency Compliance - Expenditures in Excess of Appropriations Criteria: North Carolina General Statute 159- Condition and Context: During the course of our audit, we noted that the Authority h expenditures in excess of budget appropriations in its operating Cause: The overage was a result of a lack of pre-audit certification of majority of which consisted of approximately $100,000 for a rout to lawsuit settlement. Effect: Expenditures exceeded appropriations. According to General Statute 158-28(a), the Authority cannot incur any ob-audits the obligation to ensure the budget ordinance or project ordinance i transaction or an unencumbered balance remains in the appropriat disbursed. Recommendation: We recommend the Authority implement controls in order to ens certifications are obtained for all purchase orders prior to the incurred without sufficient appropriations. Views of Responsible Officials: The Authority management plans to more closely monitor the budge present budget amendments to the Board when appropriate. Manage with the Board to ensure adequate appropriations for expenditure . 34 CFPTA Agenda Packet 12/20/201257 Cape Fear Public Transportation Authority Schedule of Findings and Questioned Costs (Continued) For the Fiscal Year Ended June 30, 2012 Section 3. Federal Award Findings and Questioned Costs None reported Section 4. State Award Findings and Questioned Costs None reported 35 CFPTA Agenda Packet 12/20/201258 Cape Fear Public TransportationAuthority Corrective Action Plan For the Year Ended June 30, 2012 Finding 12-1 Significant Deficiency Compliance - Expenditures in Excess of Appropriations Contact Name: Albert Eby, Executive Director Corrective Action: The Authority will monitor plans to more clos evaluate the need for further appropriations in the budget to be Board for approval. Additionally, the addition of the new finan in the budgeting process significantly increases the accuracy of budget as well as strengthen the monitoring of the budget througal year. Effective Date: July 1, 2012 36 CFPTA Agenda Packet 12/20/201259 Cape Fear Public TransportationAuthority Summary Schedule of Prior Audit Findings For the Year Ended June 30, 2012 Finding 11-01 Purchase Orders issued prior pre-audit certifications Status: Corrected in March 2012. 37 CFPTA Agenda Packet 12/20/201260 Cape Fear Public Transportation Authority Schedule of Expenditures of Federal and State Awards Year Ended June 30, 2012 Federal Grantor/Pass ThroughCFDAGrantor'sExpenditures Grantor/Program TitleNumberNumberFederalStateLocal Federal Assistance U. S. Department of Transportation Pass-Through Federal Transit Administration: Urbanized Area Formula Planning Cluster Formula Grants (Operating)20.507NC-90-X491-00M$ 1,810,203$ - $ 1,810,203 Formula Grants (Planning)20.507NC-90-2491-00M 60,000 10,000 30,000 Formula Grants (Operating)20.507NC-90-4502-00M 265,203 - 265,203 Formula Grants (Capital)20.507NC-90-0502-00M 25,065 - 6,266 Formula Grants (Administration)20.507NC-90-5502-00M 96,211 - 24,053 Formula Grants (ARRA)20.507NC-96-X001-01M 151,685 - - Capital Investment Grants20.500NC-04-0017-01M 134,699 16,837 16,837 Capital Investment Grants20.500NC-04-0043M 16,280 2,035 2,035 Total Urbanized Area Formula Planning Cluster 2,559,346 28,872 2,154,597 Pass-Through North Carolina Department of Transportation Formula Grants for other than Urbanized Areas (Operating)20.50912-CT-052 150,573 9,411 28,232 New Freedom Program20.52110-NF-052 39,718 - 39,718 Total U. S. Department of Transportation 2,749,637 38,283 2,222,547 State Grants Department of Transportation Public Transportation Division State Maintenance Assistance ProgramDOT-0912-SM-090M - 622,412 - Technology ProgramDOT-1011-AT-001 - 8,820 980 Transit Development Program (Capital)DOT-1111-DG-052 - 3,316 369 NC Moving AheadDOT-2204-MA-002 - 289,512 34,269 Pass Through New Hanover County Rural Operating Assistance ProgramDOT-1604-MA-002 - 205,171 9,556 Total Department of Transportation - 1,129,231 45,174 Total Federal and State Expenditures$ 2,749,637$ 1,167,514$ 2,267,721 M indicates major program See Notes to the Schedule of Expenditures of Federal and State A 38 CFPTA Agenda Packet 12/20/201261 Cape Fear Public Transportation Authority Notes to the Schedule of Expenditures of Federal and State Awards For the Year Ended June 30, 2012 Note 1. Basis of Presentation The accompanying schedule of expenditures of federal and State a grant activity of Cape Fear Public Transportation Authority and of accounting. The information in this schedule is presented in 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 presented in, or used in the preparation of, the basic financial 39 CFPTA Agenda Packet 12/20/201262 Public Comments Regarding Potential Fare Increase October- December 2012 Comment #1 Date: Sat 10/6/2012 5:11 PM From: sonja smith <reneesmith1954@gmail.com> I have been riding buses for a few years. When I first started riding fare was still $1.25. Sometimes it is hard to come up with the 15 for an adult 7 day pass. Twenty may not seem a lot but when cant afford a car and the bus is yr only way to work and grocery shopping it can be a lot. Then u have drivers who are habitually late, regardless what the traffic is like, and u want to raise fares?! I know gas has gone up but if yr going to raise fares then u need to have decent buses and better service. Comment #2 Date: Fri 10/12/2012 11:11 AM From: Sylvia Swartz The stop at Independence Mall should not be moved to another a location, as the current stop is safe. If you are tired after work, it would not be safe for individuals to cross a busy road. I am in favor of the fare increase. It is means we can keep Sunday service, then I do not mind paying the extra fare. I would like to get the second bus back on the 102. Comment #3 Date: Sat 11/3/2012 From: HDCronkite <HDCronkite@aol.com> I am no imposed about the bus fear going up I am in favor for it so we can keep the buses running on Sunday and I'am willing to pay 40.00 each month . Love dawn cox CFPTA Agenda Packet 12/20/201263 Comment #4 Date: 10/14/12 From: Amanda Charles Director Wave Transit 505 Cando Street PO Box 12630 Wilmington, NC 28405 To Whom It May Concern: th I address you this 14 day of October 2012, to make a request that you consider my public comments and I also request that you respond to my inquiries to better help me to understand the common sense reasoning that would justify a fare increase for the majority of indigent transit ridership customers that rely on your transit service. My first thought would be, why would your agency even consider a fare increase when #1 unemployment is high; #2 Gas prices are high; #3 your customer ridership majority consist of the indigent, elderly, disabled and handicap citizens of both New Hanover and Brunswick Counties? I restate my first concern; which is what justifies common sense reasoning for a fare increase when you consider the type of customers and the types of income. They are likely to depend on when they budget money to afford fare towards the transit services your agency provides. Second, if you must consider a fare increase then would you consider an increase in the time span in which one is allowed to use a transfer? I don’t agree with a 30 minute transfer time span when the buses are not always on schedule; the bus stops are very far and few between. Additionally, the ridership fare is already priced over a dollar; which is too high a price when you consider the economy and the type of citizens your transit agency services. Third, I believe that if you want to increase ridership customers; then you should lower the bus fare to a .50 two-way pass; a $1.00 all-day pass and a transfer 1-hour time span pass. I think that in common sense reasoning one would lower the transit fare to attract otherwise customers who may consider the transit service as an alternative in a plea to help keep the ridership fares low for the indigent citizens who rely on Wave Transit services. Fourth, I question what is the cost of printing revise brochures? Will you edit the brochures that are already printed? Or will you destroy the supply on hand and spend CFPTA Agenda Packet 12/20/201264 money to produce updated brochures? How much will you lose to trash in printing costs? Sincerely, Amanda G. Charles PS I ask that you forward your response to my temporary mailing address of: C/o 1912 Hudson Drive Wilmington, NC 28403 Comment #5 Date: Tue 11/6/2012 From: Alexander Guevara <alguevara927@mail.cfcc.edu> Here is a great suggestion it will help everyoneee in the citty work with the city to create designated lane times, which would be say the bus comes by at 12:30 and once every hour. the city can put up a sign that shows that the driver will be cited if they are in the bus' way at that time that it drives through the area on its route. ALL CARS MUST CLEAR LANE FOR BUS. why? what importance? it's public transportation. like a train. would the train stop for ANYONE? NO! I dont think so! The bus is making money and feuling the economy and somewhat nullifying the value of travel if there is so much money spent on transportation and people are moving fast it becomes cheaper and easier for people to come in and out of wilmington.. develops tourism and develops the economy. and LESS GAS SPENDING FOR THE BUS! Raise the prices for student fares. most people spend a whole dollar anyways. raise it from $.75 to $1.00 MORE MONEY. no significant difference. Lower the cost of wholesale bus route services (example: 30day pass) will lead to more sales print less pamphlets. both for the people who dont need to get nosy with the bus' business among other things. Work with the areas where there are bus stops! the areas near bus stops can be a great source of income. many travel companies do this! buy vending machines. sell products in local business near the bus stops or even in the city. this is how many travel companies offer such low rates on travel because they own interest in hotels, vending machine, taxis, etc. you can outsource your employees and act as someone of an agency where you make the money because they can only hire CFPTA Agenda Packet 12/20/201265 them through you!(even groundskeepers, drivers, maintenence, plumbers, receptionists, office folk. etc.) this will allow you to have a high overall TOTALgain and you can possible offer untraditionally lower fares. dont become a city like NYC where the bus is $3.25! in LA the bus is only $1.25 as it always has, and its probably for the reason that I just explained. Comment #6 Date: Wed 11/7/2012 From: Alen Guevara <montrillionbusiness@gmail.com> another way to make money is with advertisements at bus stops.. this is very popular in other cities and really brighten up areas. they can be LED or just plain poster behind glass.. you may need to build more bus stops but it could be profitable. this would help keep costs of bus fares lower. Comment #7 Date: Sun 12/2/2012 2:20PM From: Bob Smith <res33@charter.net> We’re told that WAVE fares account for only 10 percent of the cost of this system. Further, without federal subsidies it would be completely unsustainable with local taxes. The fundamental question of cost-benefit has never been answered. How can this service costing local, state and federal taxpayers $8 million annually, and growing, be justified? As far as we know WAVE is currently based on how much public money is available, not on actual need. An economic evaluation (by a disinterested party) should answer the question: Is there an actual need for this as a public service? If so, what should users that benefit pay for it? In my opinion, this system should be dramatically scaled back and privatized. Fares should be set that would pay for the services provided. R. E. Smith Jr. Wilmington, N. C. CFPTA Agenda Packet 12/20/201266 Monthly Passenger Summary November 2012 Total PassengersFixed Route 180,000 140,000 160,000 120,000 140,000 100,000 120,000 100,000 80,000 80,000 60,000 60,000 40,000 40,000 20,000 20,000 0 - JulyAugSeptOctNov JulyAugSeptOctNov 2011/2012 102,962123,455164,847157,260145,050 2011/2012 95,768103,308110,481108,821100,060 2012/2013108,152135,470155,461164,176144,577 2012/2013102,054112,743109,078114,615100,436 Change 5.04%9.73%-5.69%4.40%-0.33% Change 6.56%9.13%-1.27%5.32%0.38% Seahawk ShuttleParatransit 8,000 50,000 45,000 7,000 40,000 6,000 - 35,000 5,000 30,000 4,000 25,000 20,000 3,000 15,000 2,000 10,000 1,000 5,000 00 JulyAugSeptOctNovJulyAugSeptOctNov 2011/20122011/2012 1,07112,95647,36341,53538,5116,1237,1917,0036,9046,479 2012/2013 81416,51941,25244,01739,7302012/20135,2846,2085,1315,5444,411 Change-24.00%27.50%-12.90%5.98%3.17%Change -13.70%-13.67%-26.73%-19.70%-31.92% CFPTA Agenda Packet 12/20/201267 Passengers by Route November 2012 Fixed Route No. NamePassengersTransfers 101Brooklyn16,3222,304 102University2,289676 103Central5,359788 104East6,1781,035 105Medical Center16,2401,986 106West13,4991,553 201Independence9,258795 202Monkey Junction15,0151,604 203Trolley4,5310 204Brunswick Connector2,317297 205Longleaf Park5,231433 207Castle Hayne4,197445 TOTAL 100,43611,916 UNCW 701Blue1,853 701Teal3,771 702Green6,731 703Red6,066 704Yelow3,653 705Loop1,167 706Point to Point409 707Red Express 113,070 707Red Express 22,599 709Loop Express 1411 709CMS0 UNCW Total 39,730 Para-Transit Services ADA Passengers 1,125 Non-ADA Passengers 3,286 Para-Transit Total 4,411 TOTAL PASSENGERS 144,577 CFPTA Agenda Packet 12/20/201268 CAPEFEARPUBLICTRANSPORTATIONAUTHORITY MONTHLYOPERATIONSREPORT October2012 FIXEDROUTE MONTHLYFiscalYeartoDate ThisMonth %Change RidershipStatistics Current%ChangeCurrentPrior LastYear TotalBus/TrolleyPassengerTrips1004361000600.38%5377745278341.88% TotalUNCWPassengerTrips39730385113.17%1423321414360.63% TotalFixedRoutePassengerTrips 1401661385711.15%6801066692701.62% AverageWeekdayPassengerTrips595957393.83% AverageSaturdayPassengerTrips217219869.37% AverageSundayPassengerTrips9879900.30% OperatingStatisticsFixedRoute TotalRevenueMiles1136511254819.43%5536335732833.43% TotalRevenueHours7976901111.49%37920396714.41% AccidentsNonPreventable5366.67%9812.50% AccidentsPreventable110.00%94125.00% PassengerTrips/RevenueMile1.231.1011.68%1.231.175.23% PassengerTrips/RevenueHour17.5715.3814.28%17.9416.876.31% OperatorOvertime4.31%4.54%5.07% FareboxRevenue$69,111$60,54814.14%$349,560$308,97613.14% AverageFareperBusPassenger$0.69$0.6113.71%$0.65$0.5911.04% PARATRANSITMONTHLYFiscalYeartoDate ThisMonth RidershipStatistics %Change Current%ChangeCurrentPrior LastYear TotalADAPassengerTrips1125157028.34%3702437515.38% TotalNonADAPassengerTrips3286495033.62%122011545921.08% TotalParatransitPassengerTrips 4411652032.35%159031983419.82% AverageWeekdayPassengerTrips18732943.16% AverageSaturdayPassengerTrips326147.54% AverageSundayPassengerTrips51258.33% OperatingStatisticsParatransit TotalRevenueMiles327715381539.10%13149317335924.15% TotalRevenueHours2021352342.63%80301096826.79% AccidentsNonPreventable1366.67%1366.67% AccidentsPreventable21100.00%31200.00% PassengerTrips/RevenueMile0.130.1211.10%0.120.115.71% PassengerTrips/RevenueHour2.181.8517.93%1.981.819.52% OperatorOvertime1.53%3.10%50.65% SpecialServices GreyhoundTicketSales$3,412 AmtrakPassengersBoarded CFPTA Agenda Packet 12/20/201269 Service operates on a 60 minute frequency hour that a bus will arrive at a specific (910)343-0106 Time points indicate the minutes after each www.wavetransit.com stops at www.wavetransit.com. board. Please see a complete list of all bus have many other bus stops for which you may Our contact information is: assist you in planning your trip. All bus routes Time points listed on this map are only to holidays: Wave Transit does not operate on the following UNCW Station = Campus of UNCW/Trask at our Wave Transit Office: Holidays Bus tickets and passes may be purchased Independence Station = Independence Blvd at . The last bus begins its route at 5:00pm Forden Station = 505 Cando Street, Schedule Information ROUTE Go Safely Trip Tips Brunswick 204 Wave Transit kindly asks that you be courteous to When riding the bus, please be seated. If you Connector your fellow passengers: must stand, please hold on to the railing. If listening to music, please use headphones At the bus stop, please stand clear of the curb and keep the sound level at a volume that only while the bus is approaching. you can hear. When boarding or alighting, please watch your No animals or pets allowed on Wave Transit step, and do not rush. buses, with the exception of service animals. Please wait for the bus to leave the bus stop Please dont block the aisle with packages, before crossing the street. bags, baby carriages, or your feet. Children must be removed from strollers prior to transport. INSTRUCTIONS No weapons, alcohol, or illegal substances are permitted on the bus. The bus stops here at listed times. All Wave Transit buses are equipped with bike racks that you may use at no charge. Look for the matching Please no eating or drinking while riding Wave symbol in the schedule. :15 Downtown:45 Transit buses. The bus stops at each :21 Medical Center:51 Wave Transit discourages the use of cell :26 Independence:56 location at the time listed phones while riding our vehicles. If you must :30 Central:00 (minutes after the hour). :30 use a cell phone, please talk in a low voice and move to the back of the vehicle. The bus may stop between timepoints (not all times are Smoking and the use of electronic cigarettes Routes Effective Feb. 4, 2013 listed). Times are always approximate and depend upon CFPTA Agenda Packet 12/20/2012 is prohibited on all Wave Transit buses. traffic and weather conditions. Downtown Wilmington / Downtown 204 Brunswick Connector Station / Brunswick County 4 Adult .....................................$2.00 Senior*..................................$1.00 Persons with Disabilities* ...$1.00 Industrial Park 3 Students** (K12th).............$1.00 Navassa Town Hall Local College Students**......$1.00 Leland Govt 74 Complex UNCW Students & Staff**.......free 74 17 North Brunswick 76 High School * Reduced fares are available to disabled 421 persons, Medicare card holders, and Piggly Wiggly ages 65+ with valid ID. 7 6 5 Downtown 1 Station ** Valid ID required. Leland Middle School FARES SUBJECT TO CHANGE 133 Harris Teeter 8 Waterford Center Rite Aid Belville LEGEND 76 Town Hall Bus Route 1 Numbered Timepoint Walmart Transit Station 421 Points of interest Hospital ©2013 Wave Transit Design by Smartmaps, Inc. 17 9 MONDAYFRIDAY: 6:00am 6:00pm (Every 60 minutes) 204 Schedule SATURDAY and SUNDAY: No Service Service operates on 60-minute frequency. Time points indicate the minutes after each hour that a bus will All bus routes return to their starting point (bus stop #1) afte BUS STOPHOURLYBUS STOP Old Fayetteville Rd at North Brunswick High School Downtown Station:00 Old Fayetteville Rd / Town Hall Dr Village Rd / Fairview Rd:07 Drager Dr at Harris Teeter Main St / Old Mill Rd:14 Brunswick Village Blvd Roundabout Village Rd / Leland School Rd:19 West Gate Dr at Walmart Old Fayetteville Rd at Leland Middle School:24 CFPTA Agenda Packet 12/20/2012 CAPE FEAR PUBLIC TRANSPORTATION AUTHORITY Operating Fund Proforma Schedule of Revenues and Expenditures - Budget and Actual (Non-GAAP) Period Ended November 30, 2012 YearVariance42.00%Current to datePositive % of Month BudgetActual(Negative) Budget Actual Operating revenues Farebox revenues962,000$ 413,212$ (548,788)$ 42.95$ 73,483 Governmental contracted services *1,836,000 586,021 (1,249,979) 31.92 129,086 8,571 (1,429) 10,000 85.71 2,296 Other contracted services 1,007,8042,808,000 (1,800,196) Total operating revenues 35.89$ 204,865 Operating expenses/expenditures Labor 4,143,308 1,441,192 2,702,116 34.78 392,384 Fringe benefits 1,112,135 521,467 590,668 46.89 104,647 Fuel and lubricants 1,270,424 474,660 795,764 37.36 77,654 Vehicle maintenance 545,500 242,049 303,451 44.37 15,074 Purchased services 250,875 122,196 128,679 48.71 29,324 Insurance 354,691 207,042 147,649 58.37 1,144 Advertising 46,200 3,137 43,063 6.79 455 Tires and tubes 66,500 55,543 10,957 83.52 10,265 Utilities 53,345 28,476 24,869 53.38 9,279 Shop supplies 20,000 3,859 16,141 19.30 809 Office supplies 30,600 13,152 17,448 42.98 1,619 Other operating expenses 143,636 126,442 17,194 88.03 22,441 3,239,215 4,797,999 8,037,214 40.30 665,095 Total operating expenses/expenditures Excess of operating expenses/ (5,229,214) (2,231,411) 2,997,803(460,230) expenditures over revenues 42.67 Nonoperating revenues Federal grants2,496,000 1,120,779 (1,375,221) 44.90 190,049 State grants 849,000 206,898 (642,102) 24.37 - Operating subsidy from primary government1,278,000 1,249,000 (29,000) 97.73 - Operating subsidies from other governments532,214 198,355 (333,859) 37.27 - 39,000 (35,000) 74,000 52.70 7,397 Other income 2,814,0325,229,214 (2,415,182)197,446 Total nonoperating revenues 53.81 - (262,784)582,621$ Excess of revenues over expenditures$ 582,621 CFPTA Agenda Packet 12/20/201272 STATEOFNORTHCAROLINAAUTHORITYCONTRACT1107 COUNTYOFNEWHANOVER AGREEMENTBETWEEN CAPEFEARPUBLICTRANSITAUTHORITYand BECKERMORGANGROUP FORPROFESSIONALSERVICES ADDENDUM5 WHEREAS,onDecember15,2011theCapeFearPublicTransportationAuthorityandBecker MorganGroupenteredintoanagreementforProfessionalServices;and WHEREAS,theagreementoutlinedthescopeofservicesandfeesassociatedwithbasicservices andadditionalservices; NOW,THEREFORE,inconsiderationoftheforegoingandtheirmutualcovenantshereinafterset forth,AUTHORITYandBECKERMORGANGROUPagreetoaddthefollowingservicestoAuthority Contract1107: Forafeenottoexceedfourthousandfivehundreddollars($4,500.00),BeckerMorganwill providestructuraldesignandengineeringforabuswashenclosureinthebusparking/movementarea. Thedesignandengineeringwillincludeindoorprovisionsforabuswashinaccordancewiththe !Ò·w©z·äxrequirements.Theindoorareawillalsoprovidestoragespaceforbuswashchemicalsand waterreclamation.ThedesignandengineeringwillalsoincludeHVACequippedindoorprovisionsfor farevaultcollectionandmoneyhandlingandcounting.Designwillincludeallnecessaryapprovalsby theAuthority,NewHanoverCountyandanyotherpermittingagenciesasrequired. INWITNESSWHEREOF,theAuthorityandConsultanthaveeachexecutedthisAddendumin duplicateoriginals,oneofwhichshallberetainedbyeachoftheparties. th Thisthe20dayofDecember,2012. CAPEFEARPUBLICTRANSPORTATIONAUTHORITY BY:__________________________________ DavidR.Scheu,Chairman ATTEST: _______________________________ (seal) DonBetz,Secretary ThisinstrumenthasbeenpreauditedinthemannerrequiredbytheLocalGovernmentBudgetandFiscal ControlAct. This_______dayof__________________,2012. CFPTA Agenda Packet 12/20/201273 WaveTransitOpsCenterDesignCompletionAddendum51of2 _________________________________________ JosephMininni,CPA,FinanceOfficer APPROVEDASTOFORM: ________________________________ AndrewW.Olsen AuthorityAttorney STATEOFNORTHCAROLINA COUNTYOFNEWHANOVER I,____________________,aNotaryPublicdoherebycertifythatDonBetzpersonallycame beforemethisdayandacknowledgedtheheistheSecretaryoftheCapeFearPublicTransportation Authorityandthat,byauthoritydulygivenandastheactoftheconstituentinstitutions,theforegoing instrumentwassignedinitsnamebyitsChairman. WITNESSmyhandandofficialsealthisthe_______dayof________________,20___. ________________________________ NotaryPublic Mycommissionexpires: (seal) BECKERMORGANGROUP,INC. By:_____________________________________ _____________________________________ PrintNameandTitle STATEOF______________________ COUNTYOF____________________ I,_________________________________,aNotaryPublicinandforsaidstateandcounty,do herebycertifythat__________________,personallycamebeforemethisdayandacknowledgedthe dueexecutionoftheforegoinginstrumentonbehalfofBeckerMorganGroup,Inc.,forthepurposes thereinexpressed. WITNESSmyhandandofficialsealthisthe_______dayof________________,20___. ________________________________ NotaryPublic Mycommissionexpires: (seal) 2of2 WaveTransitOpsCenterDesignCompletionAddendum5 CFPTA Agenda Packet 12/20/201274 STATEOFNORTHCAROLINAAUTHORITYCONTRACT1107 COUNTYOFNEWHANOVER AGREEMENTBETWEEN CAPEFEARPUBLICTRANSITAUTHORITYand BECKERMORGANGROUP FORPROFESSIONALSERVICES ADDENDUM6 WHEREAS,onDecember15,2011theCapeFearPublicTransportationAuthorityandBecker MorganGroupenteredintoanagreementforProfessionalServices;and WHEREAS,theagreementoutlinedthescopeofservicesandfeesassociatedwithbasicservices andadditionalservices; NOW,THEREFORE,inconsiderationoftheforegoingandtheirmutualcovenantshereinafterset forth,AUTHORITYandBECKERMORGANGROUPagreetoaddthefollowingservicestoAuthority Contract1107: Forafeenottoexceedfourthousandsixhundredfiftydollars($4,650.00),BeckerMorganwill providedesignandengineeringtoincreasetheemployeeareainsizesuchthatthetotalsinglevehicle parkingprovidedonsitetobeonehundred.BeckerMorganwillalsoupdateallexistingpermitsto includetheadditionalparkingasapplicable. INWITNESSWHEREOF,theAuthorityandConsultanthaveeachexecutedthisAddendumin duplicateoriginals,oneofwhichshallberetainedbyeachoftheparties. th Thisthe20dayofDecember,2012. CAPEFEARPUBLICTRANSPORTATIONAUTHORITY BY:__________________________________ DavidR.Scheu,Chairman ATTEST: _______________________________ (seal) DonBetz,Secretary ThisinstrumenthasbeenpreauditedinthemannerrequiredbytheLocalGovernmentBudgetandFiscal ControlAct. This_______dayof__________________,2012. _________________________________________ JosephMininni,CPA,FinanceOfficer CFPTA Agenda Packet 12/20/201275 WaveTransitOpsCenterDesignCompletionAddendum61of2 APPROVEDASTOFORM: ________________________________ AndrewW.Olsen AuthorityAttorney STATEOFNORTHCAROLINA COUNTYOFNEWHANOVER I,____________________,aNotaryPublicdoherebycertifythatDonBetzpersonallycame beforemethisdayandacknowledgedtheheistheSecretaryoftheCapeFearPublicTransportation Authorityandthat,byauthoritydulygivenandastheactoftheconstituentinstitutions,theforegoing instrumentwassignedinitsnamebyitsChairman. WITNESSmyhandandofficialsealthisthe_______dayof________________,20___. ________________________________ NotaryPublic Mycommissionexpires: (seal) BECKERMORGANGROUP,INC. By:_____________________________________ _____________________________________ PrintNameandTitle STATEOF______________________ COUNTYOF____________________ I,_________________________________,aNotaryPublicinandforsaidstateandcounty,do herebycertifythat__________________,personallycamebeforemethisdayandacknowledgedthe entonbehalfofBeckerMorganGroup,Inc.,forthepurposes dueexecutionoftheforegoinginstrum thereinexpressed. WITNESSmyhandandofficialsealthisthe_______dayof________________,20___. ________________________________ NotaryPublic Mycommissionexpires: (seal) 2of2 WaveTransitOpsCenterDesignCompletionAddendum5 CFPTA Agenda Packet 12/20/201276 CFPTA Agenda Packet 12/20/201277 RESOLUTION _____________________________________________________________________ Introduced by: Albert Eby, Executive Director Date: December 20, 2012 PERMANENT LICENSE PLATE RESOLUTION WHEREAS , the State of North Carolina recognizes the need for governmental agencies to be provided tax exempt status and pursuant to this belief, the state allows the majority of governments to purchase permanent vehicle license plates at cost; and WHEREAS , Session Law 2012-159 House Bill 989 prohibits transit authorities that are not units of city or county government from eligibility for permanent license plates; and WHEREAS , changes to eligibility for permanent license plates is projected to the Authority tens of thousands of dollars annually in vehicle license fees; NOW, THEREFORE , be it resolved that the Cape Fear Public Transportation Authority respectfully requests that the North Carolina General Assembly amend Session Law 2012-159 House Bill 989 to allow transit Authorities created under NCGS 160A Articles 25, 26 and 27 the opportunity to purchase permanent plates for vehicles titled in the name of the Authority. Adopted a regular meeting _____________________ on December 20, 2012 David R. Scheu, Chairman Attest: _____________________ Don Betz, Secretary (seal) CFPTA Agenda Packet 12/20/201278 CFPTA Agenda Packet 12/20/201279