Transit Agency Status Wayne County Transportation FY 2011

Transit Agency Status Wayne County Transportation FY 2011 -12 Current Financial Position – Surplus of $18 K expected for current year. Uncertainty of MATP program is a major concern Current Operations -- Ridership through February is down 1% from last year. MATP ridership, along with the MATP program in general, is turbulent (down 7% -- see below) Service Statistics/Trends – Dramatic increase in average trip lengths (from 12. 1 last year to 16. 4 this year) is a major concern. Increase in trip length, plus less productivity on MATP runs to programs, has led to decline in passengers per hour, and increases in mileage and service hours Funding Statistics/Trends – As noted above, there will be a small surplus this year. A fare increase of 10% took effect July 1. Wayne County has also begun billing MATP for escorts and for administrative reimbursement. Other Information/Assumptions – Office staff was increased when new R & S software was added two years ago, is now being reduced by one and one-half positions. Transportation Manager retired in April, 2010 and has not been replaced. Consulting assistance has been utilized instead of replacing the manager. After many difficulties, Route. Match software installed in March of 2010 is now functioning well. Capital Status Review – Proposal for a major technology upgrade is now before the Bureau. It includes AVL, MDT, and a telephone notification module. We believe this will greatly improve operations, customer service, and work flow. Vehicle replacement is on track and going well. 1

Current Financial Position: Reserves/Retained Earnings Source Balance Lottery 0 MATP 0 MH/MR 0 Area Agency on Aging 0 Other State $ 0 Other Local $ $12, 482 2

Current Financial Position: Level of Short-Term Debt/Loans—Identify each line of credit (excludes long-term bond financing) Name of Financial Institution Amount of Available Credit Interest Rate Current Credit in Use None 3

Current Financial Position: Accounts Payable – Past due 90 days and over Vendor Amount Past Due Estimated Pay Date None Accounts Receivable – Past due 90 days and over Program/Agency Amount Past Due Date Requisitioned Estimated Pay Date MATP $ 16, 687 9/29/2011 ? ? ? MATP $ 39, 326 11/29/2011 ? ? ? 4

Current Operations: Staffing Level Contract Provisions Healthcare Pension Fuel Fares Other major factors producing cost increases above inflation Cost Savings Initiatives 5

WAYNE COUNTY OFFICE OF HUMAN SERVICES Transportation System Effective: March 9, 2012

Labor Provisions Term of current union contract – No union Drivers Current 2012 -13 Starting wage $10. 40 w. CDL $9. 95 w/o $10. 73 w. CDL $10. 27 w/o Top wage $12. 96 $13. 37 Average wage Job Classification $10. 40 Number- Full Time $10. 53 Number-Part Time Drivers 2 32 Mechanics 0 0 Dispatchers 5 1 Clerical 0 0 Transportation Supervisor Administrative Supervisor 1 1 0 0 Additional administrative and fiscal services are provided by other County personnel on an allocated basis. 7

Important Labor Provisions Use of part-time employees – All but two of Wayne County’s drivers are part-time employees. Number/percent of “split shift” drivers – Demand is constant throughout the day, so no split shifts are used. Overtime – Minimal Outsourcing – all vehicle maintenance is provided by local vendors. Other – none 8

Healthcare Non-Union Current PPO Coverage: Individual, $531/month; H/W, $1, 283/mo. ; Parent/Child, $1, 003/mo. ; Parent/children, $1, 198/mo. ; Family, $1442/mo. FY 2012 -13 Rate changes usually go into effect in March. Percentage of increase has ranged from 6 to 15% over past three years. Current Employees hired prior to 1/1/02 contribute $20 per pay period. Those hired after 1/1/02 contribute $20 per pay period for single coverage or 20% of the premium for additional coverage. FY 2012 -13 We are not aware of any planned changes. Current Primary Care Physician, $15; Specialist, $30; Prescriptions, $10 -$100; Variety of other services, $10 to $50 Basic Coverage Employee Contributions Co-Paymentany proposed changes and the estimated Describe We are not aware of any planned changes. FY 2012 -13 financial impacts. 9

PENSION Employee Contributions Union Current 7% minimum up to a maximum of 17% FY 2012 -13 We are unaware of any changes at this time. Current 60 years of age or older regardless of length of credited service or age 55 with 20 years of credited service. FY 2012 -13 We are unaware of any changes at this time. Current Five Years FY 2012 -13 We are unaware of any changes at this time. Minimum Age to Qualify for Retirement Minimum Number of Years to be Vested Non-Union 10

Pension: Describe any proposed changes and the estimated financial impacts. See previous page Provide a status of the degree to which the pension funding is funded. If not fully funded please provide your strategy to fully fund pension. Pension is fully funded. 11

Fuel: Current Cost per Gallon – Two local suppliers are used for fuel. With one, taxes are included in the price of $3. 79 per gallon, and a rebate is applied for and received on taxes paid. The other supplier charges $3. 26 per gallon, without taxes included. Prices are for most recent deliveries. Contract rate or market rate? -- Prices are market rate. Neither supplier is interested in a contract. Terms of contract (if applicable) Projected Cost per Gallon and Basis for Projection -- $30, 000 has been added in the enclosed current year budget to the original projection, itself a 30% increase from last year. Next year’s budget includes an additional $20, 000. Contract rate or market rate? – See above. Terms of contract (if applicable) 12

Shared Ride Fares: Date of Last Fare Increase 7/1/11 Current Average fare $27. 28 Sponsorship arrangements – only sponsor is Area Agency on Aging. Passengers pay $1. 00 for in-county trips and $1. 75 for out-of-county trips, except for PDA Waiver passengers, who pay nothing. AAA pays the remainder of senior fares, as well as PDA full fares. Planned Changes: Date of planned increase – perhaps, 10% either July 1, 2013 or July 1, 2014 Estimated average fare -- $30. 00 Sponsorship arrangements – same Describe Fare Policy – The Agency on Aging pays the fare for all passengers over the age of 60. PDA Waiver passengers do not pay a co-pay. All others contribute $1. 00 for in-county trips and $1. 75 for out-of-county trips. 13

Other Major Factors Producing Cost Increases Beyond Inflation: Factors For changes from 2010 -11 to 2011 -12 Current Amount Projected Future Amount Explanation Other Salaries + 16% from 10 -11 Expected to decrease. Two additional people hired in late 10 -11. Staff will be reduced 7/1/12 Fringe Benefits Up 14% from 1011 Will show a slight decrease. Consistent with increase in personnel Services Up 21% Will decrease. Fuel Up 53% + $20 K in 12 -13 Higher maintenance costs; increased use of consultant. No explanation necessary or possible Tires & Tubes Up 34% Other materials Up 22% Minimal increase expected Minimal increase No major increases are anticipated or shown in the future year budgets. Small Category, small amounts. More purchases of minor equipment in 11 -12 14

Cost Savings Initiatives: Initiative Reduce office staff by 1. 5 positions Current Cost $48, 000 annually Planned Action and Implementation Date July 1, 2012 Projected Savings $48, 000 annually Health Care Changes from traditional plans to PPO; employees now pay $20 or 20% of the premium Consulting Assistance Improved revenue with fare increase application, billings for MATP Admin. Reimbursement and Escort Trips. Helped improve use of new R & S software; urged reduction in office staff; assistance in other areas. MATP revenue increase $100 K. Office staff savings – noted above As noted elsewhere, Wayne County has submitted a proposal to the Bureau for MDT and AVL systems, as well as an automated telephone notification system. Greatly enhanced efficiency and customer service; better information. Technology 15

Shared Ride Funding (Shared-Ride Service Only) FY 2010 FY 2011 - FY 2012 -11 12 -13 FY 2014 -15 Operating Expense $1, 128, 364 $1, 288, 222 $1, 270, 514 $1, 303, 112 $1, 324, 603 Passenger Revenue $1, 071, 062 $1, 306, 552 Lottery $ 421, 094 $ 459, 578 MATP $ 429, 166 $ 576, 540 Other Service Stabilization, Local Contrib. $ 220, 082 $ 57, 032 $ 270, 434 $ 270434 $ 270, 434 Balance $ $ $ 36, 038 $ $ 0 18, 330 3, 440 -18, 051 16

Shared Ride Statistics/Trends Shared-Ride FY 2010 -11 FY 2011 -12 FY 2012 -13 FY 2013 -14 Total Veh. Miles 639, 304 694, 832 Cost per Mile $ 1. 76 $ 1. 85 $ 1. 83 $ 1. 88 $ 1. 91 Total Veh. Hours 38, 515 39, 390 Cost per Hour $ 29. 30 $ 32. 70 $ 32. 25 $ 33. 08 $ 33. 63 Total Pass. Trips 47, 421 46, 420 Cost per Trip $ 23. 79 $ 27. 75 $ 27. 37 $ 28. 07 $ 28. 54 Rev. per Trip $ 22. 59 $ 28. 15 1. 23 1. 18 Trips per Hour 1. 18 FY 2014 -15 1. 18 17

Other Information/Assumptions: Biggest operating issue for the future will be longer trip lengths. Senior trip length has gone from 11. 7 last year to 13. 6 this year. For all passengers, the figure was 12. 1 last year and 16. 4 this year. Longer trip lengths for senior trips are at least partly due to better service – i. e. , more trips to malls in Scranton, more non-essential trips. Longer trips in general are at least partly due to more Senior, Pw. D, MATP trips to Scranton and elsewhere for specialists. Longer trip lengths also significantly affect mileage and service hours, which increase, and productivity, which decreases. Since the county’s fares are mileage-based, longer trips also increase fare revenue, which is appropriate. The county has a relatively high average fare, but this must be considered in light of trip lengths. Costs per mile and per hour are quite reasonable. No major increases beyond inflation are anticipated or shown in the future year budgets, since there is no way of knowing what they might be. Of course, fuel is a complete unknown, and maintenance costs and other operating contingencies can always crop up. If Service Stabilization funds are available, they would be the first choice for reducing a deficit. If these funds are not available, the county may request a fare increase of 10% in either 2013 -14 or 2014 -15. The reason there are direct costs in the “Non-Public” column for FY 2011 -12 and forward is that the county began this year to directly operate MATP “Outside-of-Regular Service” trips, which had previously been done by a subcontractor (subcontractor would not renew insurance at sufficient limits). 18

Capital Status Review – Proposal for a major technology upgrade is now before the Bureau. It includes AVL, MDT, and a telephone notification module. We believe this will greatly improve operations, customer service, and work flow. Vehicle replacement is on track and going well. Twelve-Year Plan was submitted with 11 -12 CCA grant, which reflects the county’s current thinking on capital projects. Only change is proposed cost of AVL/MDT/Phone System, which has been reduced from a total of $250, 000 in the 12 -year plan to $150, 000 currently. 19