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Home My WebLink About01/22/13 - 11/18/13 • GREATER ROANOKE TRANSIT COMPANY BOARD OF DIRECTORS January 17, 2013 David A. Bowers, President, and Members of the Greater Roanoke Transit Company Board of Directors Dear President Bowers and Members of the Board: This is to advise that the regular meeting of the Greater Roanoke Transit Company Board of Directors will be held on Tuesday, January 22, 2013, at 1:00 p.m., in the EOC Conference Room, Room 159, first floor, Noel C. Taylor Municipal Building, 215 Church Avenue, S. W., Roanoke, Virginia. Sincerely, / ; _ W, yy` .t Stephanie M. M Secretary pc: Christopher P. Morrill, Vice President of Operations, GRTC Daniel J. Callaghan, General Counsel, GRTC Ann H. Shawver, Treasurer, GRTC Drew Harmon, Municipal Auditor Sherman M. Stovall, Assistant Vice President of Operations, GRTC Gary E. Tegenkamp, Assistant General Counsel, GRTC Carl L. Palmer, General Manager, Valley Metro, P. O. Box 13247, Roanoke, Virginia 24032 L\CLERK\DATA\CKSM1\GRTC.12\January 17,2012 Meeting Notice doc a GREATER ROANOKE TRANSIT COMPANY BOARD OF DIRECTORS JANUARY 22, 2013 1:00 P.M. EOC CONFERENCE ROOM ROOM 159 AGENDA 1. Call to Order. 2. Roll Call. 3. Approval of Minutes: Regular meeting held on November 19, 2012. 4. Reports of Officers: a. General Manager: 1 . Management Update: Presentation of Efficiencies Study Update. 2. Financial Report for November 20, 2012 3. Request for maximum operating and capital financial assistance from the Federal Transit Administration and the Commonwealth of Virginia Department of Rail and Public Transportation for the fiscal year 2013-2014. 4. Appointment of two members of the Board and two officers of the Company to serve as the Fiscal Year 2013-2014 Budget Review Committee to review the proposed budget. 5. Secretary: a. Recommendation to establish the Annual Meeting of the GRTC Stockholders to be held on Monday, June 17, 2013, at 1:30 p.m., in the City Council Chamber. 6. Other Business. 7. Adjournment. K:\GRTC\GRTC 2013\January 22, 2013 Agenda.doc 1/18/2013 Greater Roanoke Transit Company Service Analysis and Cost Efficiency Study 2013 - UPDATE 2Z 2013 GRTC Financial Challenges • Reduction in Federal Funding — Urbanized Zone Area(UZA)now over 200,000(210,000) — GRTC to receive a minimum of$200,000(approx.)less in Federal assistance for FY 14 • Proposed VDRPT Funding Formula Change—SJR 297 — Based on FY13 dollars,GRTC's state funding would decrease by approximately $92,000 — Proposed formula to be phased in over three fiscal years • FY15—PEROT will subsidize 100%of any lost funds due to formula DRPT will subsidize 50%of any lost funds due to formula • FY17—Fu impact of proposed formula in effect • FY13 is the final year of additional funding for the Smart Way Connector — local match,$150,000 2 1 1/18/2013 GRTC Financial Challenges • Operating Costs — Fuels — Utilities — Compensation/Benefits • Provide appropriate levels of service based on available resources • Significant increases in local subsidy not sustainable over time la„ary 22,2023 Efficiency Study: Purpose • To ensure maximum use of existing resources and evaluate service delivery efficiencies that will result in potential operating savings January 22,2013 4 2 1/18/2013 GRTC Service Delivery Structure • Regular Service Hours — Monday through Saturday 5:45am—8:45pm — Hourly headway on all routes — 32 routes (16 outbound/16 inbound) • Peak Service Hours — Monday through Friday • AM Peak Service 6:15am—9:15am • PM Peak Service 3:45pm—6:45pm — 22 routes (11 outbound/11 inbound) - Valley View Mall, Crossroads Mall, Vinton, Tanglewood Mall, Grandin, Lewis Gale, Veterans Hospital, Peter's Creek 5 13nUZry 12 2O13 GRTC FUNDING STRUCTURE REVENUE/OTHER 4% REVENUE/PASS. FEDERAL 33% 23% CITY/LOCAL 23% STATE 17% 3 1/18/2013 GRTC Fare Comparison Transit System Fare(Full Adult) Greater Roanoke Transit Company $1.50 Greater Lynchburg Transit $2.00 Alexandria(DASH) $1.50 Hampton Roads Transit $1.50 Greater Richmond Transit S1.50 Cost Efficiency Initiatives Currently Underway • Water/Utility Conservation — 165,000 Gallons saved to date!Approximately$2,000 saved • System Wide Fuel Savings Campaign — System miles per gallon increased,4.5mpg to 4.7mpg — Projected$57,000 and 17,000 gallons saved annually • More Fuel Efficient Vehicle on Saturday Smart Way Service — 8 weeks — Gasoline($3.16)vs.Diesel ($3.41) — Projected annual savings of$10,504 • GRTC to purchase 9 new"mini-hybrid" transit buses — Miles per gallon increase.5mpg per bus — 1,842 gallons of fuel saved annually per bus — $56,529 in fuel costs saved annually • GRTC adjusted the number of days the Maintenance Department is staffed from 7 days to 6 days — More efficient use of staff — Decreased Utility Usage — Decreased Revenue Vehicle Downpipe, 4 1/18/2013 • ZONAR Maintenance & Fuel Monitoring Program • • --" Benefits: M • GPS Locations 1 �\ If • Monitor vehicle speed • Y } • Adjust routing I® 6 ' -- i` in real-time on-time • performance lanua,v e2 1 1 ZONAR Maintenance & Fuel Monitoring Program ZQNArt xxo«x _ Benefits: raafie vxxmx, I • Monitor/address wasteful fuel usage • Adjust routing to decrease"idling _,_.....�...W. '_ " time" 515).14 20.10°i: ..w....., '.. • • $1165 8.28°x. nr 22 201 10 .......... d-'—. 5 1/18/2013 Passengers Per Service Hour Weekday Passenger Per Hour Saturday Passengers Per Hour 3PM 851.74 passengers 2PM 610.04 passengers 4PM" 839.42 passengers 3PM 589.26 passengers 7AM" 785.38 passengers 4PM 523.07 passengers 2PM 720.26 passengers 1PM 496.44 passengers SAM" 712.28 passengers 10AM 49026 passengers 10AM 71032 passengers 11AM 476.37 passengers 9AM 686.55 passengers 12PM 47696 passengers 6AM" 675.03 passengers 5PM 440.19 passengers 5PM" 6436 passengers 9AM 429.81 passengers 12PM 613.69 passengers SAM 38241 passengers 1PM 597.94 passengers 7AM 321 passengers 11AM 582.3 passengers 6PM 318.52 passengers 6PM" 37863 passengers 6AM 261.18 passengers 5AM 344.9 passengers 7PM 252.52 passengers 7PM 316.48 passengers SAM 118 passengers aPM 136.65 passengers 8PM 101.4 passengers Potential savings of up to$351,180(49% local funding) **Peak Service Jsrua, r.a:r, 11 GRTC Route Study Task Review • System-wide bus stop level study • Assess productivity of passenger/people generators • Identify transit service environmental changes 6 1/18/2013 GRTC's Transit User Top 10 Bus Stops 1. Downtown Roanoke 2. Valley View/Walmart 3. Lake Drive Plaza—Hardy Road 4. Spartan Square Kroger—Salem 5. Crossroads Shopping Center 6. Valley View Mall/Sears 7. Valley Metro Administrative Building 8. Virginia Western Community College 9. Towers Shopping Center 10.Veterans Administration Hospital 6.6 8.1012 GRTC Route Study >All routes and bus stops were evaluated; ➢ Bus stop locations: ONO Activity(Elimination) ❑Light Activity(Elimination/Consolidation) ❑Moderate Activity(Consolidation where possible) ❑Heavy Activity(No Action) ➢ Bus Routing: OShorten Route—"short run" ❑Extend route to meet demand/untapped markets ➢ Preliminary Route Study Results 063 Bus stops to be eliminated 022 Bus stops to be consolidated 0 "short run"4.5 route miles, $6,720 saved annually 72,2oia 14 7 1/18/2013 • Service Revisions • Ability to expand/offer new services is compromised by funding structure — Fare revenue will not cover total cost — Limited incremental Federal and State funds for expanded services — Reliance on increased local support • Reallocate Low Performing Service Hours/Peak Service Hours — Sunday Service — New Service Areas • Eliminate Low Performing Service Hours/Peak Service Reallocate Low Performing /Peak Service Hours • A New Limited Service on Sunday — Operate 10 buses (Valley View, Salem, Lewis Gale, Crossroads) — 9am—6pm — "take citizens where they want to go, when they want to go there" • Provide transit service to new service areas — Evans Springs — Blue Hills — Countryside January R 1013 16 8 1/18/2013 ti Eliminate Low Performing /Peak Service Hours • Eliminate Low Performing Service Hours — $351,780(49%local funding) net savings — Use net savings to address Federal/State funding reductions — Weekday reduction would impact approximately 8 passengers per route(1.5%of weekday ridership) — Saturday reduction would impact approximately 7 passengers per route(3.5%of Saturday ridership) • Eliminate Peak Service Hours — $865,075(49% local funding) net savings — Impacts 12%of the daily ridership — Use net savings to address Federal/State funding reductions January$210L2 17 Efficiency Study: In Review Comments/Questions??? la 9 1/18/2013 Eye on the Future Future Service Area • Census 2010 Urbanized Area vs. Current Transit Service Area • Service to New Service Areas (Countryside, Evans Springs, Blue Hills) Ianmry 22,A_ 29 Conclusions • The measures taken to date, have resulted in efficiencies, ridership impact and operating constraints considered • There is potential to enhance GRTC's service delivery capabilities by focusing conceptual planning on expanding service to new areas within GRTC's current service area as well as outside of it 10 1/18/2013 Recommendations ➢A regional transit system plan is needed. > Implement route assessment results as completed. >Continue current cost saving measures. January 21.2013 11 11 yea . istiahricThe -ses Greater Roanoke Transit Company Board of Directors Meeting Roanoke,Virginia January 22, 2013 David A. Bowers, President and Members of the Board of Directors Dear President Bowers and Members of the Board: Subject: Greater Roanoke Transit Company November 2012 Financial Report The attached report provides financial performance information for the period ending November 2012. Greater Roanoke Transit Company (GRTC) experienced net income of $179,930, an improvement of approximately$60,236 compared to the same period in FY 2012. The significant factors affecting financial performance are outlined below. Operating Income Total operating income decreased slightly below the same period for FY 2012 and it is .1% below the established budget. Significant factors affecting operating income include: • Fare revenues increased 2.8% compared to FY 2012 and are .9% above the established budget. Although fare revenue has increased for the base fixed route service, it has decreased for the Smart Way service. Revenue from the sale of monthly and weekly passes for the base fixed route service and the Smartway service has declined. • Advertising revenue decreased approximately 1.3.% although it is 3.1% above the established budget. • Non-Transportation revenue, primarily rental and parking income, decreased approximately 31.5% and is 13.4% below budget. Operating Expenses Total operating expenses increased 6.1% compared to FY 2012, but is .4% below the established budget. Significant factors affecting operating expenses include: Greater Roanoke Transit Company P.O. Box 13247 • Roanoke,Virginia 24032 • Phone: 540.982.0305 • Fax: 540.982.2703 • www.valleymetro.com ♦ David A. Bowers, President and Members of the Board of Directors • GRTC Financials January 22, 2013 Page 2 • Labor and Fringe Benefit expenses increased 9.2%, but are approximately 1.2% below the established budget. • Materials and supplies (fuel, parts, tires, etc.) expense increased .7%, and exceeds budget by 2.6%. • Miscellaneous expenses increased 9% and exceeds budget by approximately 3.3%. The increase is primarily due to an 10.3%increase in purchased transportation expense. Operating Assistance Total operating assistance increased approximately 10.5% over the same period in FY 2012 and exceeds budget by approximately 2.3%. Significant factors impacting operating assistance include: • State operating assistance increased approximately 26% and is 3.7% above the established budget. • Federal operating assistance increased approximately 8.3% and is 2.7% above the established budget. Respectfully Carl L. Palmer General Manager Cc: Vice President of Operations Assistant Vice President of Operations Treasurer Secretary GRTC General Counsel Municipal Auditor . yr GREATER ROANOKE TRANSIT COMPANY SOUTHWESTERN VIRGINIA TRANSIT MANAGEMENT COMPANY Operating Revenue and Expense Statement For the Five Months Ending November 30, 2012 FY FY FY 13 November November BUDGET %OF FY 13 2013 2012 TOTAL BUDGET OPERATING INCOME Operating Revenue $916,399.79 $891,252.98 $2,157445.00 42.48% Advertising Revenue 56,367.59 57,096.15 126,18900 44.67% Non-Transportation Revenues 53,456.37 78,00458 189,390.00 28.23% Total Income $1,026,223.75 $1,026353.71 $2,473,015.00 41.50% OPERATING EXPENSES Labor-Hourly&Salary $1,399,123.78 $1,225,075.61 $3,232,360.00 43.28% Fringe Benefits 829,610.07 632,411.95 1,795402.00 35.07% Services 213,809.47 219,359.16 530,453.00 40.31% Materials&Supplies 829,16959 823,446.60 1,874023.00 44.25% Utilities 96261.62 88,830.92 276,670.00 35.52% Insurance Costs 147,481.49 148,702.42 419,324.00 35.17% Miscellaneous Expenses 407,874.89 374,051.63 907,784.00 44.93% Total Expenses $3,725,330.91 $3,511,878.29 $9,036,016.00 41.23% Net Loss ($2,699,107.16) ($2,485,524.58) ($6,563,00100) 41.13% Local Grants $851,805.90 $825,374 76 $2,023,636.00 42.09% State Grants 711,620.00 564,617.00 1,570,533.00 45.31% Federal Grants 1,315,611.00 1,215,227.00 2,966832.00 44.31% Total Subsidies $2,879,036.90 $2,605218.76 $6,563,001.00 43.87% Net Income(loss) $179,929.74 $119,694.18 .M GREATER ROANOKE TRANSIT COMPANY SUMMARY OF STATEMENT OF NET ASSETS 11/30/2012 11/30/2011 Year-to-Date Year-to-Date %of Change ASSETS CASH $ 1,033,413.69 $ 831,072.49 24% ACCOUNTS RECEIVABLE $ 1,065,074.20 $ 919,864.55 16% INVENTORY $ 481,928.23 $ 476,013.56 1% FIXED ASSETS FIXED ASSETS $ 29,513,826.26 $ 29,546,715.59 0% ACCUMULATED DEPRECIATION $ (17,682,899.22) $ (16,196,762.95) 9% NET FIXED ASSETS $ 11,830,927.04 $ 13,349,952.64 -11% PREPAYMENTS $ 120,998.01 $ 87,060.47 39% TOTAL ASSETS $ 14,532,341.17 $ 15,663,963.71 -7% CURRENT LIABILITIES ACCOUNTS PAYABLE $ 512,832.31 $ 412,862.58 24% PAYROLL LIABILITIES $ 306,692.64 $ 208,573.02 47% OTHER LIABILITIES $ 809,040.28 $ 552,497.99 46% CAPITAL CAPITAL STOCK $ 5.00 $ 5.00 0% GRANTS $ 4,921,840.10 $ 5,138,494.60 -4% DEPRECATION EXPENSE $ (767,951.14) $ (792,603.15) -3% RETAINED EARNINGS $ 8,505,517.24 $ 9,935,164.49 -14% CAPITAL CONTRIBUTIONS $ 64,435.00 $ 89,275.00 -28% NET INCOME (LOSS) $ 179,929.74 $ 119,694.18 50% TOTAL CAPITAL $ 12,903,775.94 $ 14,490,030.12 -11% TOTAL LIABILITIES&CAPITAL $ 14,532,341.17 $ 15,663,963.71 -7% GREATER ROANOKE TRANSIT COMPANY BOARD OF DIRECTORS January 30, 2013 Carl L. Palmer General Manager Valley Metro Roanoke, Virginia Dear Mr. Palmer: I am attaching a copy of a resolution authorizing the filing of applications and the acceptance and execution of appropriate agreements for operating and capital financial assistance for Fiscal Year 2013-2014 with the Federal Transit Administration and the Commonwealth of Virginia Department of Rail and Public Transportation, upon certain terms and conditions. The above referenced measure was adopted by the Board of Directors of the Greater Roanoke Transit Company at a regular meeting held on Tuesday, January 22, 2013. Sincerely, Stephanie M. Moon Secretary Enclosure pc: Christopher P. Morrill, Vice-President of Operations, GRTC Sherman M. Stovall, Assistant Vice-President of Operations, GRTC Daniel J. Callaghan, General Counsel, GRTC Ann H. Shawver, Treasurer, GRTC Gary E. Tegenkamp, Assistant General Counsel, GRTC Drew Harmon, Municipal Auditor K\GRTC.13\January 22,2013 Cone$pnndencedac i BOARD OF DIRECTORS OF GREATER ROANOKE TRANSIT COMPANY A RESOLUTION AUTHORIZING THE FILING OF APPLICATIONS AND THE ACCEPTANCE AND EXECUTION OF APPROPRIATE AGREEMENTS FOR OPERATING AND CAPITAL FINANCIAL ASSISTANCE FOR FISCAL YEAR 2013- 2014 WITH THE FEDERAL TRANSIT ADMINISTRATION AND THE COMMONWEALTH OF VIRGINIA DEPARTMENT OF RAIL AND PUBLIC TRANSPORTATION UPON CERTAIN TERMS AND CONDITIONS. BE IT RESOLVED by the Board of Directors of the Greater Roanoke Transit Company that the Company's General Manager and Vice President of Operations are each authorized to execute, as may be needed, in a form approved by General Counsel, appropriate applications requesting the maximum operating and capital financial assistance from the Federal Transit Administration and the Commonwealth of Virginia Department of Rail and Public Transportation for the fiscal year 2013-2014 and further to accept and execute the necessary operating grant agreements and capital grant agreements, in a form approved by General Counsel, all as more particularly set forth in the report of the General Manager to this Board dated January 22, 2013. The Company's Secretary is also authorized to attest any such documents. ATTEST: Date Adopted: 07$ 1 1 'tn. -.bade M. Moon, Sc,retary y a. 3. Valley e M Greater Roanoke Transit Company Board of Directors Meeting January 22, 2013 David A. Bowers, President, and Members of the Board of Directors Roanoke, Virginia Dear President Bowers and Members of the Board: Subject: Authorization to File for Federal Transit Administration Operating and Capital Financial Assistance, and Commonwealth of Virginia Operating and Capital Financial Assistance for fiscal year 2013-2014. Financial assistance has been provided to Greater Roanoke Transit Company (GRTC) by the Federal Transit Administration (FTA)and the Commonwealth of Virginia Department of Rail and Public Transportation (VDRPT)during previous fiscal years for certain operating and capital expenses. Under FTA regulations, GRTC is eligible for federal operating funds, which cannot exceed 50%of its proposed operating deficit. In fiscal year 2013-2014 GRTC will apply for the maximum amount allowed in federal operating and capital financial assistance. During the current 2012-2013 fiscal year, the total amount of assistance GRTC will receive from FTA is approximately$2,802,217; the total amount of assistance GRTC will receive from VDRPT is approximately$1,775,873. The deadline for filing the applications for the above referenced assistance for FY 2012-2013 is February 1, 2013. Recommendation Authorize the General Manager to file applications requesting the maximum operating and capital financial assistance from FTA and VDRPT for fiscal year 2013-2014 and to accept and execute the necessary grant agreements in a form approved by legal counsel. Respe ull ub- i1-'• Carl General Manager c. Vice President of Operations Assistant Vice President of Operations Treasurer Secretary GRTC General Counsel Municipal Auditor Greater Roanoke Transit Company PO Box 13247 • Roanoke, Virginia 24032 • Phone: 540.982.0305 • Fax:540.982.2703 • www.valleymetro.com y, a3 M BOARD OF DIRECTORS OF GREATER ROANOKE TRANSIT COMPANY A RESOLUTION AUTHORIZING THE FILING OF APPLICATIONS AND THE ACCEPTANCE AND EXECUTION OF APPROPRIATE AGREEMENTS FOR OPERATING AND CAPITAL FINANCIAL ASSISTANCE FOR FISCAL YEAR 2013- 2014 WITH THE FEDERAL TRANSIT ADMINISTRATION AND THE COMMONWEALTH OF VIRGINIA DEPARTMENT OF RAIL AND PUBLIC TRANSPORTATION UPON CERTAIN TERMS AND CONDITIONS. BE IT RESOLVED by the Board of Directors of the Greater Roanoke Transit Company that the Company's General Manager and Vice President of Operations are each authorized to execute, as may be needed, in a form approved by General Counsel, appropriate applications requesting the maximum operating and capital financial assistance from the Federal Transit Administration and the Commonwealth of Virginia Department of Rail and Public Transportation for the fiscal year 2013-2014 and further to accept and execute the necessary operating grant agreements and capital grant agreements, in a form approved by General Counsel, all as more particularly set forth in the report of the General Manager to this Board dated January 22, 2013. The Company's Secretary is also authorized to attest any such documents. ATTEST: Date Adopted: Stephanie M. Moon, Secretary 5q . GREATER ROANOKE TRANSIT COMPANY BOARD OF DIRECTORS January 22, 2013 David A, Bowers, President Court G. Rosen, Vice-President Michael Shockley Melinda J. Payne Mark Jamison Karen Michalski-Karney Curtis Mills Dear President Bowers and Members of the Board: Paragraph I, Article II of the By-Laws of the Greater Roanoke Transit Company provide that the Annual Meeting of the Stockholders will be held during the month of June each year at a day, time and place to be from time to time fixed by the Board of Directors. It is recommended that the Annual Stockholders' Meeting be held on Monday, June 17, 2013, at 1:30 p.m., in.the City Council Chamber. Sincerely, • f - Stephanie M. Moon �. Secretary pc: Christopher P. Morrill, Vice President of Operations, GRTC Sherman M. Stovall, Assistant Vice President of Operations, GRTC Daniel J. Callaghan, General Counsel, GRTC Gary E. Tegenkamp, Assistant General Counsel, GRTC Ann H. Shawver, Treasurer, GRTC Drew Harmon, Municipal Auditor Carl L. Palmer, General Manager, Valley Metro, P. O. Box 13247, Roanoke, Virginia 24032 L:\CLERK\DATA\CKSMI\GRTC.12\Scheduling Stockholders'Meetingg doc Valley �� M MEMORANDUM April 9, 2013 To: Thomas Mara, Senior Associate Business Management Research ./ From: Carl L. Palmer, General Manager �� ./ Greater Roanoke Transit Companyt Re: Greater Roanoke Transit Company Procurement Systems Review Submittal Pursuant to the Federal Transit Administration's (FTA) February 15, 2013 letter, this will serve as the cover memorandum for the Greater Roanoke Transit Company's (GRTC) FTA Procurement Systems Review(PSR) submittal, specifically GRTC's purchasing policies and procedures, and listing of all procurement actions and contracts awarded. GRTC is a public nonprofit corporation formed in the Commonwealth of Virginia in July 1974 for the purpose of providing mass transportation services. By a September 1974 resolution of the Roanoke City Council, the City of Roanoke is the sole stockholder of GRTC embodied in the Roanoke City Council. The Roanoke City Council appoints the GRTC Board of Directors and Officers of the Board. There are seven (7) members of the Board of Directors, representing the City of Roanoke, downtown Roanoke, political jurisdictions outside the City of Roanoke, and people with disabilities. The Officers of the Board are Vice President of Operations, represented by the City Manager's Office, Assistant Vice President of Operations, represented by the Office of the Assistant City Manager for Operations, General Counsel, represented by the City Attorney's Office, Treasurer, represented by the City's Department of Finance, and Secretary, represented by the City Clerk's Office. Organizationally, GRTC has 119 employees, 78 of whom are bus operators. GRTC is managed by a General Manager, Assistant General Manager of Operations, Director of Transportation, Director of Maintenance, Director of Finance/Procurement, and Director of Personnel/Administration. GRTC has a fleet of 47 buses that provide service on 19 routes, including two (2) commuter services and a downtown trolley service. GRTC's service area includes the City of Roanoke, the City of Salem and the Town of Vinton for its urban fixed route service, as well as the Town of Christiansburg, the Town of Blacksburg, the City of Bedford and Bedford County, and the City of Lynchburg for its interurban commuter services. Except for the service to Bedford and Lynchburg, GRTC operates 15 hours per day, six (6) days per week, Monday through Saturday; service to Bedford and Lynchburg operates 12 hours per day seven (7) days per week. GRTC has an annual ridership of 2.4 million. GRTC has a management and operation services contract with First Transit, Inc. that provides for the management services of the General Manager and Assistant General Manager as well as support services from First Transit's corporate headquarters, including quarterly reviews of GRTC's procurement document files. The bus operators, mechanics, and the facility maintenance and administrative staff that carryout the day to day operations and managed by Greater Roanoke Transit Company PO Box 13247 • Roanoke, Virginia 24032 • Phone: 540.982.0305 • Fax:540.982.2703 • www.valleymetro.com the General Manager and Assistant General Manager are employees of the Southwestern Virginia Transit Management Company (SVTMC), a sub-corporation of First Transit, Inc. SVTMC was formed in the Commonwealth of Virginia, in 1975. The bus operators and mechanics are represented by the Amalgamated Transit Union, Local 1493. In March 1989, the GRTC Board of Directors adopted the Procurement Code of the City of Roanoke, thereby binding GRTC to comply with its requirements as set forth in detail in the City of Roanoke Procurement Manual, August 1, 2008—First Revision. Due to the fiduciary relationship between GRTC and the City of Roanoke, the Assistant City Manager(GRTC's Assistant Vice President of Operations), City Attorney's Office (GRTC's General Counsel), and the City's Purchasing Division provides GRTC staff with legal and technical support and oversight on matters pertaining to procuring goods and services in compliance with the Virginia Public Procurement Act. With technical support from First Transit and FTA, GRTC's General Manager and Assistant General Manager assures compliance with FTA Circular 4220.1F when procuring the same goods and services. This memorandum includes the following enclosures for your review and records: 1) GRTC Articles of Incorporation, By-Laws, and Five (5) Stock Certificates (1974) 2) City of Roanoke GRTC Sole Stockholder Resolution (1974) 3) GRTC Organization Chart 4) SVTMC Articles of Incorporation (1975) 5) GRTC Board of Directors Minutes Adopting City of Roanoke Procurement Code (1989) c. Christopher P. Morrill, GRTC Vice President of Operations Sherman Stovall, GRTC Assistant Vice President of Operations Ann H. Shawver, GRTC Treasurer Stephanie Moon, GRTC Secretary Daniel Callaghan, GRTC General Counsel Gary E. Tegenkamp, GRTC Assistant General Counsel Drew Harmon, City of Roanoke Municipal Auditor Sharon G. Lewis, City of Roanoke Purchasing Manager Kevin L. Price, GRTC Assistant General Manager Stephanie Giles, GRTC Director of Finance/Procurement Tiffany 011ie, GRTC Purchasing Agent me3PE: Ftil2V3 Greater Roanoke Transit Company Board of Directors Meeting Roanoke,Virginia April 24, 2013 David A. Bowers, President and Members of the Board of Directors Dear President Bowers and Members of the Board: Subject: Greater Roanoke Transit Company February 2013 Financial Report The attached report provides year-to-date financial performance information for the eight months ending February 2013. Year-to-date net income totals $318,612, an improvement of $80,941 compared to the same period in FY 2012. The significant factors affecting financial performance are outlined below. Revenue Total revenue on a year-to-date basis increased 3% over FY 2012 and is approximately 1% above the established budget. Revenue performance is influenced by fare revenue which is performing at a level that meets the anticipated budget and operating assistance which is performing at a level that exceeds budget by 2.5% due to the level of funding received via state and federal grants Expenses Total expenses on a year-to-date basis increased 1.9% over FY 2012, but are 2% below the established budget. While materials and supplies exceed the established budget by approximately 4%, labor, fringe benefit, utility, insurance, and miscellaneous expenses are below budget. At this point, it is not anticipated that the required local operating assistance will exceed budget. If revenue and expenditure performance for the remaining months of the fiscal year does not perform within the established budget, any net loss would be covered from available working capital. Greater Roanoke Transit Company P.O. Box 13247 • Roanoke,Virginia 24032 • Phone: 540.982.0305 • Fax: 540.982.2703 • www.valleymetro.com David A. Bowers, President and Members of the Board of Directors GRTC Financials April 24, 2013 Page 2 Respectfully Sub • ted, Carl L. Palmer General Manager Cc: Vice President of Operations Assistant Vice President of Operations Treasurer Secretary GRTC General Counsel Municipal Auditor AN GREATER ROANOKE TRANSIT COMPANY SOUTHWESTERN VIRGINIA TRANSIT MANAGEMENT COMPANY Operating Revenue and Expense Statement For the Eight Months Ending February 28,2013 FY FY FY 13 February February BUDGET %OF FY 13 2013 2012 TOTAL BUDGET OPERATING INCOME Operating Revenue $143538273 $1,426,890.86 $2.157445.00 66.67% Advertising Revenue 80491.95 101,917.35 126,180 00 6379% Non-Transportation Revenues 91 752.93 135 469.50 189390.00 48.45% Total Income $1,610627.61 51,664,277.71 $2,473,015.00 65.13% OPERATING EXPENSES Labor-Hourly&Salary $2.134,100.77 $2,060,143.06 $3,232,360.00 66.02% Fringe Benefits 1,075,347 87 1,119976.90 1,795,402.00 59.89% Services 33403327 336,991.15 530,453.00 62.97% Materials&Supplies 1,28%932.31 i 269,642.15 1,809,881 00 71.11% Utilities 175,052.97 149,457.72 27 6670.00 63.27% Insurance Costs 236,788.69 231,503.59 419,324.00 56.47% Miscellaneous Expenses 634,858.89 60%582.92 1,010,651.00 62.82% Total Expenses $5 877,114.77 $5,768,297.49 $9,074,741.00 64.76% Net Loss ($4,266,487.16) ($4,104,019.78) ($6,601,726.00) 64.63% Local Grants $1,367,864.10 $1,331,139.79 $2,023,636.00 67.59% State Grants 1,132,215.00 93%351.00 1,746,659.00 64.82% Federal Grants 2,085020.00 2074,200.00 2,831,431.00 73.64% Total Subsidies $4585099.10 $R341,690 79 $6,601,726.00 69.45% Net Income(loss) $318,611.94 $237,671.01 • GREATER ROANOKE TRANSIT COMPANY SUMMARY OF STATEMENT OF NET ASSETS 2/28/2013 2/29/2012 Year-to-Date Year-to-Date %of Change ASSETS CASH $ 1,484,691.89 $ 1,292,264.31 15% ACCOUNTS RECEIVABLE $ 1,295,443.78 $ 1,169,650.76 11% INVENTORY $ 478,274.24 $ 458,234.49 4% FIXED ASSETS FIXED ASSETS $ 29,837,846.05 $ 29,575,985.91 1% ACCUMULATED DEPRECIATION $ (18,164,175.51) $ (16,678,567.80) 9% NET FIXED ASSETS $ 11,673,670.54 $ 12,897,418.11 -9% PREPAYMENTS $ 102,679.02 $ 76,812.09 34% TOTAL ASSETS $ 15,034,759.47 $ 15,894,379.76 -5% CURRENT LIABILITIES ACCOUNTS PAYABLE $ 581,923.87 $ 384,612.76 51% PAYROLL LIABILITIES $ 290,938.66 $ 227,909.87 28% OTHER LIABILITIES $ 1,317,704.09 $ 1,129,606.03 17% CAPITAL CAPITAL STOCK $ 5.00 $ 5.00 0% GRANTS $ 4,921,840.10 $ 5,138,494.60 -4% DEPRECIATION EXPENSE $ (1,249,227.43) $ (1,274,408.00) -2% RETAINED EARNINGS $ 8,505,517.24 $ 9,935,164.49 -14% CAPITAL CONTRIBUTIONS $ 347,446.00 $ 115,324.00 201% NET INCOME (LOSS) $ 318,611.94 $ 237,671.01 34% TOTAL CAPITAL $ 12,844,192.85 $ 14,152,251.10 -9% TOTAL LIABILITIES&CAPITAL $ 15,034,759.47 $ 15,894,379.76 -5% GREATER ROANOKE TRANSIT COMPANY BOARD OF DIRECTORS MARCH 18, 2013 1:00 P.M. EOC CONFERENCE ROOM ROOM 159 AGENDA 1. Call to Order. 2. Roll Call. Directors Mills and Michalski-Karney were absent. Director Payne arrived late. President Bowers advised that agenda items would be taken out of order in this instance due to only having four directors in attendance. 4. Reports of Officers: a. General Manager: 3. Consent and Authorization to Convey GRTC-Owned Residual Property to the City of Roanoke. Adopted resolution. 4. Approval of Revision to the Fiscal 2013 Budget. Adopted resolution 2. Financial Report for the Month of January 2013. Received and filed. 3. Approval of Minutes: Regular meeting held on January 22, 2013. Approved as recorded. 4. Reports of Officers (continued): a. General Manager: 1. Management Update: • Bus Stop Shelter Project • Amtrak Connector Reservation System L:\CLERK\DATA\CKSM1\GRT2,13\March 18, 2013 Action Agenda REVISEE.doc • FTA Procurement Systems Review • State's Transportation Funding Bill At this point, Director Payne entered the meeting (1:19 p.m.). • Union Negotiations • Second Quarter Ridership Received and filed. 5. Other Business. None. 6. Next Meeting Date: May 20, 2013. 7. Adjournment. 1:30 P.M. L:ACLERKVDATAVCKSM1VGRTC.13\March 18, 2013 Action Agenda REVISED.doc GREATER ROANOKE TRANSIT COMPANY BOARD OF DIRECTORS May 20, 2013 David A. Bowers, President, and Members of the Greater Roanoke Transit Company Board of Directors Dear President Bowers and Members of the Board: Please be advised that in addition to Director Shockley, Directors Michalski-Karney and Mills will not be present at the regular meeting of the Greater Roanoke Transit Company Board of Directors held on Monday, May 20 at 1:00 p.m., in the EOC Conference Room, Room 159, first floor, Noel C. Taylor Municipal Building, 215 Church Avenue, S. W. Sincerel 4 " Jonathan E. Craft Assistant Secretary pc: Christopher P. Morrill, Vice President of Operations, GRTC Daniel J. Callaghan, General Counsel, GRTC Ann H. Shawver, Treasurer, GRTC Drew Harmon, Municipal Auditor Sherman M. Stovall, Assistant Vice President of Operations, GRTC Gary E. Tegenkamp, Assistant General Counsel, GRTC Carl L. Palmer, General Manager, Valley Metro, P. O. Box 13247, Roanoke, Virginia 24032 L:\CLERK\DATA\CKSM1\GRTC.13\Shockley out May 20,2013 Meeting Notice.doc GREATER ROANOKE TRANSIT COMPANY BOARD OF DIRECTORS March 14, 2013 David A. Bowers, President, and Members of the Greater Roanoke Transit Company Board of Directors Dear President Bowers and Members of the Board: The regular meeting of the Greater Roanoke Transit Company Board of Directors will be held on Monday, March 18 at 1:00 p.m., in the EOC Conference Room, Room 159, first floor, Noel C. Taylor Municipal Building, 215 Church Avenue, S. W. Sincerely, 'y�^ Stephanie M. Moon Secretary pc: Christopher P. Morrill, Vice President of Operations, GRTC Daniel J. Callaghan, General Counsel, GRTC Ann H. Shawver, Treasurer, GRTC Drew Harmon, Municipal Auditor Sherman M. Stovall, Assistant Vice President of Operations, GRTC Gary E. Tegenkamp, Assistant General Counsel, GRTC Carl L. Palmer, General Manager, Valley Metro, P. O. Box 13247, Roanoke, Virginia 24032 K:\GRTC.12\November 19,2012 Meeting Notice doc GREATER ROANOKE TRANSIT COMPANY BOARD OF DIRECTORS April 22, 2013 Cad L. Palmer General Manager Valley Metro Roanoke, Virginia Dear Mr. Palmer I am attaching a copy of a resolution determining that a certain piece of Greater Roanoke Transit Company residual real property, approximately 3,367 square feet, is no longer needed for Greater Roanoke Transit Company operations and consenting to the transfer of such residual property back to the City of Roanoke; authorizing certain Greater Roanoke Transit Company officials to execute any necessary deed and/or necessary documents and/or take appropriate actions to transfer such residual property to the City of Roanoke; and authorizing certain Greater Roanoke Transit Company officials to execute any necessary documents and/or take any other actions that may be needed to accomplish such transfer of the residual property to the City of Roanoke. The above referenced measure was adopted by the Board of Directors of the Greater Roanoke Transit Company at a regular meeting held on Monday, March 18, 2013. Sincerely, ) -1Othn1 Stephanie M. Moon v Secretary Enclosure pc: Christopher P. Morrill, Vice-President of Operations, GRTC Sherman M. Stovall, Assistant Vice-President of Operations, GRTC Daniel J. Callaghan, General Counsel, GRTC Ann H. Shawver, Treasurer, GRTC Gary E. Tegenkamp, Assistant General Counsel, GRTC Drew Harmon, Municipal Auditor M\GRTC13\March 18,2013 Correspondence doc BOARD OF DIRECTORS OF GREATER ROANOKE TRANSIT COMPANY A RESOLUTION DETERMINING THAT A CERTAIN PIECE OF GREATER ROANOKE TRANSIT COMPANY RESIDUAL REAL PROPERTY IS NO LONGER NEEDED FOR GREATER ROANOKE TRANSIT COMPANY OPERATIONS AND CONSENTING TO THE TRANSFER OF SUCH RESIDUAL PROPERTY BACK TO THE CITY OF ROANOKE; AUTHORIZING CERTAIN GREATER ROANOKE TRANSIT COMPANY OFFICIALS TO EXECUTE ANY NECESSARY DEED AND/OR NECESSARY DOCUMENTS AND/OR TAKE APPROPRIATE ACTIONS TO TRANSFER SUCH RESIDUAL PROPERTY TO THE CITY OF ROANOKE; AND AUTHORIZING CERTAIN GREATER ROANOKE TRANSIT COMPANY OFFICIALS TO EXECUTE ANY NECESSARY DOCUMENTS AND/OR TAKE ANY OTHER ACTIONS THAT MAY BE NEEDED TO ACCOMPLISH SUCH TRANSFER OF THE RESIDUAL PROPERTY TO THE CITY OF ROANOKE. I. WHEREAS, by Deed dated August 29, 1985, recorded in Deed Book 1525, Page 00986, and also subsequently rerecorded in Deed Book 1621, Page 00469, the City of Roanoke ("City") conveyed certain real property to the Greater Roanoke Transit Company ("GRTC"), which property included a certain small parcel of real property designated as Official Tax Map No. 4110101; 2. WHEREAS, a small portion of such Residual Property is needed for a Virginia Department of Transportation (VDOT) Road Widening Improvement Project in that area; 3. WHEREAS, GRTC staff has determined that all of the Residual Property, approximately 3,367 square feet, is no longer needed and serves no functional purpose for the continued operation of the mass transportation services provided by GRTC; and 4. WHEREAS, GRTC staff has recommended that all of the Residual Property be transferred back to the City, at no cost to the City, so that the City and VDOT can negotiate VDOT's use of the Residual Property. THEREFORE, BE IT RESOLVED by the Board of Directors of the Greater Roanoke Transit Company as follows: 1 1. The Board hereby finds that the Residual Property referred to above and in the Board Report dated March 18, 2013, is no longer needed for GRTC operations and the Board further consents to the transfer of all of such Residual Property back to the City of Roanoke, Virginia, at no cost to the City, as referred to in the above mentioned Board Report. 2. That the Board hereby authorizes the GRTC's Vice President of Operations, Assistant Vice President of Operations, and/or GRTC's General Manager, or any of them, to execute any necessary deed and/or other necessary documents, provide additional information, and to take any necessary actions to transfer all of the Residual Property from GRTC to the City of Roanoke, Virginia. 3. The Board further authorizes GRTC's Vice President of Operations, Assistant Vice President of Operations, and/or GRTC's General Manager, or any of them, to take any further actions that maybe needed to accomplish the above transfer of all of the Residual Property back to the City of Roanoke, Virginia. 4. The form of any deed and/or other necessary documents as referred to in this Resolution shall be approved as to form by GRTC's general counsel. ATTEST: )17. Date Adopted:7�� /2, �/3 00Y0 S'e•hanie M. Moon, Secreta 2 • I G . ? valley IS Greater Roanoke Transit Company Board of Directors Meeting March 18, 2013 David A. Bowers, President, and Members of the Board of Directors Greater Roanoke Transit Company Roanoke, Virginia Dear President Bowers and Members of the Board: Subject: Board Consent and Authorization to Convey GRTC Owned Residual Property to the City of Roanoke Background The it Street and Hollins Road widening and improvement project will require the Virginia Department of Transportation (VDOT) to acquire a small portion of a residual parcel of real estate owned by GRTC located at the intersection Wise Avenue, 12th Street, and Norfolk Avenue, SE, and which parcel is designated astax map number 4110101 (Residual Property). The Residual Property was granted to GRTC by the City of Roanoke as a part ofseveral parcels that served asa local match for the funding and construction of GRTC's Administration and Maintenance Facility located at 1108 Campbell Avenue, SE, Roanoke, Virginia 24013, which are adjacent to the Residual Property. The Residual Property was part of the property used as a local match and was a condition for the Urban Mass Transit Administration (UMTA), the predecessor of the Federal Transit Administration (FTA)to participate in 80%of the planning and construction funding for the GRTC Facility. The total size of the Residual Property is approximately 3,367 square feet (.077 of an acre). However, VDOT only needs approximately 987 square feet of the 3,367 square feet of the Residual Property for the VDOT Project, but some of the remaining amount of the Residual Propertymay be needed for temporary construction easements during the construction of the Project. GRTC staff has determined that all of the Residual Property, which is basically a triangle area in the roadway, as shown in the attachment to this Report, is no longer needed and serves no functional purpose for the continued operation of the mass transportation services provided by GRTC. Accordingly, GRTC staff proposes to transfer all of the Residual Property back to the City of Roanoke so that the City and VDOT can negotiate the terms of the use of the Residual Property by VDOT for the VDOT Project. The City's assessment value of the Residual Property is $2,800. Under federal regulations, property acquired with federal money cannot be sold to another interest whose project is benefiting from federal funds, which is the case with the VDOT right of way widening project. Consequently, the Residual Property would have to be conveyed to VDOT as a grant at no cost, except for the City's deed restriction noted below. By deed dated August 29, 1985, recorded in Deed Book 1525, Page 00986, and also subsequently rerecorded in Deed Book 1621, Page 00469, the City of Roanoke conveyed certain real property to GRTC, which property included the Residual Property referred to above. Such deed contained a provision that in the event GRTC or its successor should dissolve or cease to provide mass transportation services as a public services corporation, and after thirty (30) days written notice by the City of its intent to reclaim the property granted, and after meeting • federal requirements concerning the disposition of such property, such property would revert to the City of Roanoke. Although GRTC remains active in providing mass transportation services on the property conveyed from the City, all of the Residual Property referred to above is no longer needed for GRTC's use in providing such mass transportation services. Greater Roanoke Transit Company PO Box 13247 • Roanoke, Virginia 24032 • Phone: 540.982.0305 • Fax:540.982.2703 • www.valleymetro.com David A. Bowers, President, and Members of the Board of Directors March 18, 2013 Page2 In view of the reversionary terms in the above City deed, GRTC staff believes it is prudent and advisable to transfer all of the Residual Property back to the City of Roanoke, at no cost to the City, and allow the City to negotiate directly with VDOT for the acquisition of whatever portion of the Residual Property is needed for the VDOT Right-of-Way Widening Project, without requiring the City to give the notice referred to in the above deed. It is understood that this might also include a temporary construction easement on some of the Residual Property. FTA has notified GRTC's General Manager that GRTC has satisfied the FTA disposition requirements concerning the Residual Property. Recommendation GRTC staff recommends that the GRTC Board of Directors (Board) determine that the Residual Property is no longer needed for GRTC operations and that the Board consents to the transfer of all of the Residual Property back to the City of Roanoke, Virginia, at no cost to the City, as referred to above. That the Board authorize GRTC's Vice President of Operations, Assistant Vice President of Operations, and/or GRTC's General Manager to execute any necessary deed and/or other necessary documents, provide additional information, and to take any necessary actions to transfer all of the Residual Property from GRTC to the City of Roanoke, Virginia, and to take any other actions that may be needed to accomplish such transfer, with all such documents to be approved as to form by GRTC's General Counsel. Respectfully br Carl L. Palmer General Manager c. Vice President of Operations Assistant Vice President of Operations Treasurer Secretary General Counsel Municipal Auditor ATTACHMENT TO GRTC BOARD REPORT DATED MARCH 18, 2013 • � F x RESIDUAL 1 A1102! . ``" ` ,� • `. PROPERTY .i:).31"..1 3 9r dt5•1 r "w ".% "9 `. 31.4;i4 L ,4 11630, .. . �.✓^(LAPA a`ti(13 • a, .right 2009d3093 Glty of Roanoke GREATER ROANOKE TRANSIT COMPANY BOARD OF DIRECTORS April 22, 2013 Carl L. Palmer General Manager Valley Metro Roanoke, Virginia Dear Mr. Palmer: I am attaching a copy of a resolution adopting a revised fiscal year 2013 budget for Greater Roanoke Transit Company reflecting the actual award of state grant and federal grant funds. The above referenced measure was adopted by the Board of Directors of the Greater Roanoke Transit Company at a regular meeting held on Monday, March 18, 2013. Sincerely, eJStephanie M. Moon Secretary Enclosure pc: Christopher P. Morrill, Vice-President of Operations, GRTC Sherman M. Stovall, Assistant Vice-President of Operations, GRTC Daniel J. Callaghan, General Counsel, GRTC Ann H. Shawver, Treasurer, GRTC Gary E. Tegenkamp, Assistant General Counsel, GRTC Drew Harmon, Municipal Auditor KAGRIC 13\March 18 2013 CorrespondenWCoc BOARD OF DIRECTORS OF GREATER ROANOKE TRANSIT COMPANY A RESOLUTION ADOPTING A REVISED FISCAL YEAR 2013 BUDGET FOR GREATER ROANOKE TRANSIT COMPANY. WHEREAS, the Greater Roanoke Transit Company ("GRTC") Board of Directors adopted the GRTC Budget for fiscal year 2013 (2012-2013) on May 21, 2012; and WHEREAS, the fiscal year 2013 adopted Budget needs to be revised to reflect the actual award of state grant and federal grant funds. THEREFORE, BE IT RESOLVED by the Board of Directors of the Greater Roanoke Transit Company as follows: 1. That the Board of Directors hereby approves the revisions to the fiscal year 2013 Budget as set forth in an attachment to the Board Report dated March 18, 2013, from the GRTC General Manager. 2. The Board hereby readopts the revised fiscal year 2013 Budget with the changes as reflected in the attachment to the above Board Report dated March 18, 2013. ATTEST: Date AdoptedW,4A,av Lc/ ? r „ , . // I tep anie M. Moon, Secret. M Greater Roanoke Transit Company Board of Directors Meeting March 18, 2013 David A. Bowers, President, and Members of the Board of Directors Greater Roanoke Transit Company Roanoke, Virginia Dear President Bowers and Members of the Board: Subject: Fiscal Year 2013 Budget Amendment Background The Greater Roanoke Transit Company (GRTC) Board of Directors adopted the GRTC budget for Fiscal Year 2012-2013 on May 21, 2012. The adopted budget totals $9,036,016 and included State Grant and Federal Grant revenue based on the anticipated award of funding. The FY 2012-13 adopted budget needs to be revised to reflect the actual award of State Grant and Federal Grant funds. • State Grant funds increased $176,126 based on the actual grant award. • Federal Grants funds decreased $137,401 based on the actual grant award. Recommendation Approve the revisions to the Fiscal Year 2013 budget as ass outlined in the attached Budget Summary. RespL"'G S eel, Carl L. Palmer General Manager c: Vice-President of Operations Assistant Vice President of Operations Treasurer Secretary Legal Counsel Municipal Auditor Greater Roanoke Transit Company P.O. Box 13247 • Roanoke,Virginia 24032 • Phone: 540.982.0305 • Fax: 540.982.2703 • www.valleymetro.com GREATER ROANOKE TRANSIT COMPANY COMBINED BUDGET(Valley Metro, Smartway,Trolley,Smartway Connector) FY 13 I Current Budget' Revised Budget Change REVENUES Operating Revenue $ 2,157,445 $ 2,157,445 $ - Advertising Revenue $ 126,180 $ 126,180 $ - Non-Transportation Revenues $ 189,390 $ 189,390 $ - Total Income $ 2,473,015 $ 2,473,015 $ - EXPENSES Labor $ 3,232,360 $ 3,232,360 $ - Fringe Benefits $ 1,795,402 $ 1,795,402 $ - Services $ 530,453 $ 530,453 $ - Materials&Supplies $ 1,874,023 $ 1,809,881 $ (64,142) Utilities $ 276,670 $ 276,670 $ - Insurance Costs $ 419,324 $ 419,324 $ - Miscelleneous Expenses $ 907,784 $ 1,010,651 $ 102,867 Total Expenses $ 9,036,016 $ 9,074,741 $ 38,725 DEFICIT $ (6,563,001) $ (6,601,726) $ (38,725) SUBSIDIES Local Grants $ 2,023,636 $ 2,023,636 $ - State Grants $ 1,570,533 $ 1,746,659 $ 176,126 Federal Grants $ 2,968,832 $ 2,831,431 $ (137,401) Total Subsidies $ 6,563,001 $ 6,601,726 $ 38,725 Net Income(loss) $ - $ - $ Va��e sir: Greater Roanoke Transit Company Board of Directors Meeting Roanoke,Virginia March 18, 2013 David A. Bowers, President and Members of the Board of Directors Dear President Bowers and Members of the Board: Subject: Greater Roanoke Transit Company January 2013 Financial Report The attached report provides financial performance information for the period ending January 2013. Greater Roanoke Transit Company (GRTC) experienced net income of $284,723, an improvement of approximately$112,742 compared to the same period in FY 2012. The significant factors affecting financial performance are outlined below. Operating Income Total operating income decreased $43,273 or 3% below the same period for FY 2012 and it is 1.1% below the established budget. Significant factors affecting operating income include: • Fare revenues increased 1% compared to FY 2012 and is performing within the established budget. Although fare revenue has increased for the base fixed route service, it has decreased for the Smart Way service. Revenue from the sale of monthly and weekly passes for the base fixed route service and the Smartway service has declined. • Advertising revenue decreased approximately 18.7% although it is 1.2% above the established budget. • Non-Transportation revenue, primarily rental and parking income, decreased approximately 31.9%and is 15.4% below budget. Operating Expenses Total operating expenses increased 2.5% compared to FY 2012, but are 1.2% below the established budget. Significant factors affecting operating expenses include: Greater Roanoke Transit Company P.O. Box 13247 • Roanoke,Virginia 24032 • Phone: 540.982.0305 • Fax: 540.982.2703 • www.valleymetro.com David A. Bowers, President and Members of the Board of Directors GRTC Financials March 18, 2013 Page 2 • Labor and Fringe Benefit expenses increased .9%, but are approximately 2.7% below the established budget. • Materials and supplies (fuel, parts, tires, etc.) expense increased 2.5%, and exceeds budget by 2.9%. • Utilities increased 13.9%, but are 4.8% below the established budget. • Insurance costs increased 1.5%, but are 8.8% below the established budget. • Miscellaneous expenses increased 10.4% and exceeds budget by approximately 4.2%. The increase is primarily due to a 10.7% increase in purchased transportation expense. Operating Assistance Total operating assistance increased approximately 7.4% over the same period in FY 2012 and exceeds budget by approximately 3.1%. Significant factors impacting operating assistance include: • State operating assistance increased approximately 22% and is 5.3% above the established budget. • Federal operating assistance increased approximately 4% and is 3.6% above the established budget. It is not anticipated that the required local operating assistance will exceed budget. Based on current projections, it is anticipated that FY 2013 net revenue will be approximately $34,000, provided that GRTC is successful in accessing dedicated State funds for the Smart Way Connector. If GRTC is not successful in accessing the dedicated State funds, it is anticipated that there could be a net loss of approximately $116,000, which would be covered from available working capital. Respectfully Submit ed, Carl L. Palmer General Manager David A. Bowers, President and Members of the Board of Directors GRTC Financials March 18, 2013 Page 3 Cc: Vice President of Operations Assistant Vice President of Operations Treasurer Secretary GRTC General Counsel Municipal Auditor • GREATER ROANOKE TRANSIT COMPANY SOUTHWESTERN VIRGINIA TRANSIT MANAGEMENT COMPANY Operating Revenue and Expense Statement For the Seven Months Ending January 31,2013 FY FY FY 13 January January BUDGET %OF FY 13 2013 2012 TOTAL BUDGET OPERATING INCOME Operating Revenue $125667942 $1,246,556.08 $2157445.00 58.34% Advertising Revenue 76031.33 92,336.75 126,180.00 59.46% Non-Transportation Revenues 81,186.04 119,277.33 189,390.00 42.87% Total Income $1,414,896.79 61,458,170.16 $2473,015.00 57.21% OPERATING EXPENSES Labor-Hourly&Salary $1,886,844.86 $1,816,802.00 $3232,360.00 58.37% Fringe Benefits 910,302.02 954,145.60 1,795,402.00 50.70% Services 295,220.11 300,532.97 530,453.00 55.65% Materials&Supplies 1,147,282.06 1,119,420.45 1,874,023.00 61.22% Utilities 148,147.76 136012.63 276,670.00 53.55% Insurance Costs 207479.65 204,469.11 419,324.00 49.48% Miscellaneous Expenses 566,962.64 513,381.83 907,784.00 62.46% Total Expenses $5,162,239.10 $6036764.59 $9,036016.00 57.13% Net Loss ($3,747,342.31) ($3,580,594.43) ($6563,001.00) 57.10% Local Grants $1,194,802.86 $1,162217.95 $2,023,636.00 59.04% State Grants 998,972.00 820,722.00 1,570,533.00 63.61% Federal Grants 1,836290.00 1769635.00 2,968,832.00 61.92% Total Subsidies $4032064.86 $3,752,574.95 $6563,001.00 61.44% Net Income(loss) $284,722.55 $171,980.52 • GREATER ROANOKE TRANSIT COMPANY SUMMARY OF STATEMENT OF NET ASSETS 1/31/2013 1/31/2012 Year-to-Date Year-to-Date %of Change ASSETS CASH $ 1,543,278.93 $ 559,937.23 176% ACCOUNTS RECEIVABLE $ 873,961.66 $ 1,002,248.12 -13% INVENTORY $ 484,087.82 $ 466,385.90 4% FIXED ASSETS FIXED ASSETS $ 29,673,181.26 $ 29,548,528.20 0% ACCUMULATED DEPRECIATION $ (17,999,796.25) $ (16,518,420.32) 9% NET FIXED ASSETS $ 11,673,385.01 $ 13,030,107.88 -10% PREPAYMENTS $ 142,466.04 $ 35,236.61 304% TOTAL ASSETS $ 14,717,179.46 $ 15,093,915.74 -2% CURRENT LIABILITIES ACCOUNTS PAYABLE $ 488,114.21 $ 350,906.58 39% PAYROLL LIABILITIES $ 297,761.39 $ 225,467.06 32% OTHER LIABILITIES $ 1,096,997.14 $ 296,633.01 270% CAPITAL CAPITAL STOCK $ 5.00 $ 5.00 0% GRANTS $ 4,921,840.10 $ 5,138,494.60 -4% DEPRECIATION EXPENSE $ (1,084,848.17) $ (1,114,260.52) -3% RETAINED EARNINGS $ 8,505,517.24 $ 9,935,164.49 -14% CAPITAL CONTRIBUTIONS $ 207,070.00 $ 89,525.00 131% NET INCOME (LOSS) $ 284,722.55 $ 171,98032 66% TOTAL CAPITAL $ 12,834,306.72 $ 14,220,909.09 -10% TOTAL LIABILITIES&CAPITAL $ 14,717,179.46 $ 15,093,915.74 -2% Valley s M Greater Roanoke Transit Company Management Update March 18, 2013 Bus Shelter Proiects Wal Mart approved the conceptual shelter design plan for the site that was previously reviewed with the Board. The next step will be to complete architectural and engineering plans and review the conceptual plans with the Manager of Valley View Mall. Due to the level of student ridership, a second shelter at Virginia Western Community College(VWCC)will be installed adjacent to the existing shelter on the inbound (northbound) side of Colonial Avenue. GRTC staff will be working with VWCC's facilities management staff to determine the exact location of where the second shelter's concrete pad will be installed. Amtrak Connector Reservation System GRTC staff continues to work with representatives from Amtrak on establishing the Smart Way Connector service on the Amtrak Reservation System. Amtrak rejected proposed modifications to the standard Amtrak Ticketing Agreement and has asked GRTC to accept the agreement in standard form. GRTC staff will work with its legal counsel to resolve the issues. FTA Procurement Systems Review GRTC was randomly selected for a Federal Transit Administration (FTA) Procurement System Review Audit. FTA has engaged Business Management Research Associates (BMRA) in Fairfax Virginia to conduct the audit. The audit will be conducted between May 13th and 171", 2013. The Audit will focus on 56 elements consistent with FTA regulations governing third parting contracting and procurement practices. For all procurement contracts, except buses and other rolling stock, the review will cover two years. For rolling stock, the review will cover five years. In consultation with FTA Region III office in Philadelphia, First Transit's Corporate Headquarters, the City of Roanoke Municipal Auditor's office, and GRTC's General Counsel, staff is in the process of preparing for the auditThe Board will be kept advised of future developments. State's Transportation Funding Bill GRTC staff has participated in two statewide conference calls with the Virginia Transit Association (VTA)and the Department of Rail and Public Transportation (DRPT), respectively, to discuss and discern the potential grant funding benefits that GRTC will realize as a result of the passage of the Governor's Transportation Funding Bill (HB 2313). To date, the following is staff's current understanding of the Bill's elements pertaining to transit: 1) Funding of $385 million for transit over five years(current level approximately$162 million for transit); 2) Funding for transit will be for operating and capital, approximately a 70%--30% split,respectively; Among the questions yet to be answered are exactly when the funding will be available to transit systems and what allocation formula will be used. Greater Roanoke Transit Company PO Box 13247 • Roanoke,Virginia 24032 • Phone: 540.982.0305 • Fax:540.982.2703 • www.valleymetro.com On the latter, as you may recall from our discussions at the Board's November, 2012 meeting pertaining to DRPT's proposed performance driven funding formula, GRTC stood to sustain a fiscal yearloss of$90,779 in operating assistance. Since November, the General Assembly has directed DRPT to take a different approach to satisfying its goal of distributing funds in a more equitable and effective manner. It is uncertain as to whether or not any of the elements in DRPT's original proposal will be carried forward and applied to the new funding bill. Staff will continue to keep the Board advised of further developments. Union Negotiations Management's negotiations with the Amalgamated Transit Union, Local 1493 resumed on February 13th; the negotiations were facilitated by a federal mediator; management and the Union reached an agreement on all outstanding issues; the agreement was ratified by the Union membership on Sunday, February 17'". Second Quarter Ridership Overall ridership is up approximately 3%on a year-to-date basis for Fiscal Year 2013 compared to the same period in Fiscal Year 2012. Comparative ridership information (percentage change)for each individual service is outlined below: • Fixed Route: +4% • Smart Way: (8%) • Smart Way Connector: +24% • Star Line Trolley: (18%) • STAR: +3% Resp- ull� rl -re General Manager Copy: Vice President of Operations Assistant Vice President of Operations Treasurer Secretary Acting GRTC General Counsel Municipal Auditor GREATER ROANOKE TRANSIT COMPANY BOARD OF DIRECTORS MAY 20, 2013 1 :00 P.M. EOC CONFERENCE ROOM ROOM 159 AGENDA 1. Call to Order. 2. Roll Call. Directors Mills, Michalski-Karney and Shockley were absent. 3. Approval of Minutes: Regular meeting held on March 18, 2013. Approved as recorded. 4. Reports of Officers: a. General Manager: 1. Management Update: • Bus Shelter Projects • Amtrak Connector Reservation System • FTA Procurement Systems Review • State's Transportation Funding Bill • Unified Planning Work Program • March Year to Date Ridership Received and filed. 2. GRTC Fiscal 2014 Budget Concurred in recommendation. 3. Appointment of GRTC Board of Directors for Fiscal 2014 Appointment of Members to the Board of Directors to be held during the Annual Stockholder's Meeting on Monday, June 17, 2013, at the 1:30 p.m., in the Council Chamber. 5. Other Business. NONE. 6. Next Meeting Date: June 17, 2013. 7. Adjournment. 1:34 P.M. o-.\CLERK\DATA\CKSM1\0RTC.13\may 20, 2013 Action Agenda.doc GREATER ROANOKE TRANSIT COMPANY BOARD OF DIRECTORS May 16, 2013 David A. Bowers, President, and Members of the Greater Roanoke Transit Company Board of Directors Dear President Bowers and Members of the Board: Please be advised that Director Shockley will not be present at the regular meeting of the Greater Roanoke Transit Company Board of Directors held on Monday, May 20 at 1:00 p.m., in the EOC Conference Room, Room 159, first floor, Noel C. Taylor Municipal Building, 215 Church Avenue, S. W. Sincerely, 1114 1 Stephanie M. Moon Secretary pc: Christopher P. Morrill, Vice President of Operations, GRTC Daniel J. Callaghan, General Counsel, GRTC Ann H. Shawver, Treasurer, GRTC Drew Harmon, Municipal Auditor Sherman M. Stovall, Assistant Vice President of Operations, GRTC Gary E. Tegenkamp, Assistant General Counsel, GRTC Carl L. Palmer, General Manager, Valley Metro, P. O. Box 13247, Roanoke, Virginia 24032 L:\CLERK\DATA\CKSM1\GRTC.13\Shockley out May 20,2013 Meeting Noticedoc Valley 'it Meru° Greater Roanoke Transit Company Management Update May 20, 2013 Bus Shelter Projects Staff continues to work on drafting a scope of work for a formal Architect and Engineering (A&E) services solicitation for the Wal Mart shelter. The selected A&E firm will draft the conceptual, preliminary and final designs for the construction of the shelter. Staff met with Virginia Western Community College (VWCC) to discuss location and installation plans for a second shelter to be located adjacent to GRTC's existing shelter on the inbound (northbound) side of Colonial and new shelter to be located in front of VWCC's new science building on the southbound side of Colonial. Amtrak Connector Reservation System GRTC and Amtrak representatives have reached agreement on all unresolved terms and conditions in Amtrak's Lift Agreement. The parties anticipate fully executing the Lift Agreement and activating Amtrak's national passenger reservation system by May 31. 2013. FTA Procurement Systems Review The Board was previously advised that GRTC was randomly selected for a Federal Transit Administration (FTA) Procurement System Review Audit. FTA has engaged Business Management Research Associates (BMRA) in Fairfax Virginia to conduct the audit. The audit, including interviews with key Southwestern Virginia Transit Management Company and First Transit personnel, and the City Attorney's Office, was conducted between May 131h and 171h, 2013. The audit focused on 56 elements consistent with FTA regulations governing third party contracting and procurement practices. For all procurement contracts, except buses and other rolling stock, the review covered two years, April 2011 through April 2013. For rolling stock, the review covered five years, April 2008 through 2013. Staff will update the Board of the audit results upon receipt of the final report. State's Transportation Funding Bill The Virginia General Assembly directed the Department of Rail and Public Transportation ( DRPT) to take a different approach to satisfying its goal of distributing funds in a more equitable and effective manner. Toward that end, a statewidecommittee was formed, theTransit Service Delivery Advisory Committee(TSDAC). Representatives from the Virginia Municipal League (1), the Virginia Association of Counties (1), the Virginia Transit Association (3), the Community Transportation Association of Virginia (1). and DRPT (3) constitute the makeup of the Committee. The task of the Committee is to develop and advise DRPT, the Commonwealth Transportation Board (CTB), and General Assembly on service delivery factors, based on efficiency and effectiveness, to be used to distribute new operating and capital funds generated by the passage of the Governors Transportation Bill, HB 2313. The Committee will also recommend a tiered approach for allocation of transit capital funds. The Committee had its first meeting on April 8. 2013. Staff will update the Board on the Committee's developments. Greater Roanoke Transit Company PO Box 13247 • Roanoke,Virginia 24032 • Phone: 540.982.0305 • Fax:540.982.2703 • www.valleymetro.com Fiscal 2014 Unified Planning Work Program At the request of GRTC. the Roanoke Valley Area Metropolitan Planning Organization (MPO) has included six (6) transportation planning and data collection projects in its fiscal 2014 Unified Planning Work Program (UPWP). The UPWP identifies all planning activities undertaken in the MPO's study area, it is a mechanism for the coordination of transportation planning activities in the region and is a required condition for receiving transportation planning funding assistance from the Federal Highway Administration (FHWA) and the Federal Transit Administration (FTA). The fiscal 2014 UPWP was approved by the MPO Policy Board in April 2013. The GRTC projects included in the UPWP are: 1) National Transit Database"on-board survey" 2) Regional Transit Vision Plan 3) Transit Development Plan Update 4) Transit Route Analysis and Mapping Assistance 5) "Goodie Transit" Data Maintenance 6) Bus Stop Improvement Plans Except for item one (1), which is a triennial federal requirement. the above listed projects are an outgrowth of GRTC's efficiency study presented to the Board at its January 2013 meeting. Fiscal 2013 March Year-to-Date Ridership Overall ridership is up approximately 1%for March year to date of Fiscal Year 2013 compared to the same period in Fiscal Year 2012. Comparative ridership information (percentage change)for each individual service is outlined below: • Fixed Route. +1% • Smart Way. (9%) • Smart Way Connector: +25% • Starline Trolley: (10%) • STAR: -F4% Resp,s tf ,r, ...led, . an - m-r General Manager Copy. Vice President of Operations Assistant Vice President of Operations Treasurer Secretary Acting GRTC General Counsel Municipal Auditor , . CT , Valley ale& M May 20. 2012 David A. Bowers, President and Members of the Board of Directors Dear President Bowers and Members of the Board. Subject: GRTC Fiscal Year 2013-2014 Operating Budget Background: The Board of Directors annually appoints a Budget Review Committee to review the General Manager's proposed operating budget for the Greater Roanoke Transit Company (GRTC) and provide a recommendation to the Board. The Board appointed Michael Shockley, Curtis Mills, Ann Shawver, and Sherman Stovall to the Budget Review Committee. The Budget Review Committee has reviewed the proposed Fiscal Year 2013 -2014 operating budget and endorses it in the current form, which is attached. The recommended budget totals $9,020,255, a decrease of approximately $16,000 from Fiscal Year 2012 Recommendation. The Budget Review Committee recommends that the Board of Directors approve the GRTC Fiscal Year 2013 -2014 operating budget totaling $9,020,255, Resp tf ted, arl L Imer General Manager c: Vice President of Operations Assistant Vice President of Operations Treasurer Secretary Legal Counsel Municipal Auditor Greater Roanoke Transit Company PO Box 13247 • Roanoke, Virginia 24032 • Phone: 540.982.0305 • Fax:540.982.2703 • www.valleymetro.com Valley May 20. 2013 To: GRTC Budget Committee From: Stephanie Giles Director of Finance Subject: FY 2014 Budget Proposal GRTC'S deficit for FY 2014 decreased approximately 1% compared to FY 2013. The projected revenues increased 1% while expenses decreased .2% compared to the previous year. Revenues • Passenger Revenues — increased 3% based on revenue earnings in the first six months of FY 13. • Advertising — remained level based on anticipated advertising income in FY 13. • Interest— increased slightly based on FY 12 earned interest. • Other Revenues — decreased $51,465 or 16% primarily due to a reduction in rental income. Expenses • Labor — increased $45,982 primarily due to two (2) part-time additions, Accounting Assistant and an IT Technician. The IT Technician position is offset by IT Consulting Services in the contract services line item in the current budget. The budget also includes a 2% wage increase for Administrative personnel. • Fringe Benefits - decreased $84,667 or 5% primarily due to a decrease in health insurance expense. • Services - decreased $18,977 or 4% primarily due to a decrease in administrative contract services relating to IT expense. • Materials & Supplies - decreased $66,922 primarily due to a decrease in fuel expense. • Utilities - have decreased $28,093. • Miscellaneous - increased $185,191 primarily due to an increase in Purchased Transportation expense. When the method for accounting for fuel is considered, the increase is $94,858. Subsidies • Federal - decreased $301,876 or 10%. • State- increased $63,887 or 4%. • Other Local - increased $25,127 or 8%. • New River Valley - increased $24,269 or 35% due to Smartway Connector local match requirement. • The City of Roanoke - increased $150,000 primarily due to reductions in the federal match and the Smartway Connector match. GREATER ROANOKE TRANSIT COMPANY COMBINED BUDGET(Valley Metro,Smartway,Trolley,Smartway Connector) FY 14 REVENUES FY 12 ACTUAL FY 13 BUDGET FY 14 BUDGET %INCR/DECR PASSENGER REVENUES $ 2,131,744 $ 2,157,445 $ 2,230,955 3% ADVERTISING $ 141,007 5 126,180 $ 126,180 0% INTEREST $ 5,722 $ 4,935 $ 5,722 16% OTHER REVENUES 5 204,296 $ 184,455 5 132,990 -28% TOTAL REVENUES $ 2,482,769 $ 2,473,015 $ 2,495,847 1% EXPENSES LABOR $ 3,125,934 $ 3,232,360 $ 3,278,342 1% FRINGE BENEFITS 5 1,698,737 $ 1,795,402 5 1,710,735 -5% SERVICES $ 517,506 $ 530,453 5 511,456 -4% MATERIALS&SUPPLIES $ 1,911,115 5 1,874,023 $ 1,807,101 -4% UTILITIES $ 221,824 $ 276,670 $ 248,577 -10% INSURANCE 5 339,430 $ 419,324 5 371,069 -12% MISCELLANEOUS $ 946,006 $ 907,784 $ 1,092,975 20% TOTAL EXPENSES $ 8,764,552 $ 9,036,016 5 9,020,255 0% DEFICIT $ (6,281,783) $ (6,563,001) $ (6,524,408) -1% SUBSIDIES FEDERAL 5 2,768,556 $ 2,968,832 5 2,666,956 -10% STATE 5 1,404,369 5 1,570,533 5 1,634,420 4% OTHER LOCAL $ 298,375 $ 300,473 $ 325,600 8% NEW RIVER VALLEY $ 63,460 5 69,058 $ 93,327 35% CITY OF ROANOKE 5 1,648,503 $ 1,654,105 5 1,804,105 9% TOTAL SUBSIDIES 5 6,183,263 $ 6,563,001 5 6,524,408 -1% NET INCOME(LOSS) I5 198,57011$ (0) 5 - Di ,,cf .l ricr3 GREATER ROANOKE TRANSIT AGENCY COMBINED REVENUE SUMMARY(Valley Metro,Smatlway,Trolley,Smartway Conneelor) - FY14 FY 12 ACTUAL FY 13 BUDGET FY 14 BUDGET %DIFF PASSENGER REVENUE ADULT FAR ES $ ],352,545 $ 1,352.368 5 11455210 760% BASIC MON I HLY PASS S 240,492 S 251,376 $ 228.739 -9.01% BASIC WEEKLY PASS $ 240,806 5 2 50 9_56 $ 253,942 1.19% SEMOR CITIZEN FARES 5 67,321 $ fiS,17S 5 74.230 8.82% DISCOUNT MONTHLY PASS 5 109.164 5 107,328 $ 103,277 383% DISCOUNT WLCKLY PASS 5 11,256 5 10,528 $ 11,290 7.24% STUDENT EARS $ 16,421 5 14,645 5 13,272 OTHER PRIMARY FARES 5 8455 $ 16626 5 8,455 000% STAR FARES S 30,048 5 31,212 $ 27,014 -15.08% STAR MONTHLY PASS _ 55,296 $ 53,568 5 55,526 366% SPECIAL TRANSIT FARES 5 - 5 - S - 0.00% TOTAL PASSENGER REVENUE $ 2,131,744 $ 2,157,445 $ 2,230,955 341% OTHER REVENUE ADVERTISING INCOME $ 141,007 5 126,180 $ 126,180 0.00% RENTAL OF BUILDINGS 8 109,307 5 123,890 5 72,025 -0154% INVESTMENT INCOME 5 5,722 5 4,935 $ 5,722 1595% PARKING INCOME $ 52,371 5 53,004 $ 53,004 000% OTHER MISC INCOME _ 43,578 $ 7,561 5 7,561 0.00% TOTAL OTHER REVENUE $ 351,025 $ 315,570 5 264,892 -1606% TOTAL OPERATING INCOME $ 2,483769 $ 2,473,015 $ 2,495,847 0.92% TOTAL EXPENSES $ 8,764,552 $ 9,036,016 $ 9,020,255 NET INCOME BEFORE SUBSIDIES $ (6,281,7831 $ 16.563,0011 $ (6,524,408) SUBSIDIES FEDERAL ._ 2.505,536 $ 2,645,000 $ 2,353,548 -1102% FEDERAL 5311-SMARTWAY $ 175,193 $ 19 ,613 $ 191,048 FEDERAL 5311-SMARTWAY CONNECTOR 5 87,827 $ )29,214 5 122,360 STATE 5 1,226411 S 1,353621 5 1,529,247 130134 STATE 5311 SMARTWAY 15 46.273 $ 66,912 5 64,390 376% SI ATE 5311 SMARTWAY CDNN LCT OR _ 12,969 5 - - 5 40,279 000% STATE RAIL EARMARK S .16,716 5 130,000 5 - -100.00% CITY OF ROANOKE $ 1,585,044 $ 1,585.048 5 1,688697 654% CITY OF ROANOKE SMARTWAY $ 63,459 5 69,09 $ 63.327 -8.30% CITY OF ROANOKE-SMART WAY CONNECTOR 5 - S - $ 52.081 0.0076. NEW RIVER VALLEY 5MA RTWAY 5 63,460 $ 69.050 $ 63,327 NEW RIVER VALLEY-SMART WAY CONNECTOR IS - $ - 5 30,000 000% SALEM 5. 132.252 5 _ 129.100 $ 760.000 844% VIV10.N 5 85041 5 91373 5 105.600- 154% ICARR ION S7,.1133 I 5 05105 5 S5,I➢5 a 03% pOLVNTOWN P.OANOKS.INC iS 25947 $ 245,95 $ 24,595 0.00%' TOTAL SUBSIDIES I $ 6,183,263 5 6,56300115 6,524,408f -659%I GREATER ROANOKE TRANSIT COMPANY COMBINED BUDGET(Valley Metro,Smartway,Trolley,Smartway Connector) FY 14 FY 12 ACTUAL FY 13 BUDGET FY 14 BUDGET %DIFF COMBINED BUDGET-SYSTEM LABOR $ 3,129,934 $ 3,232,360 $ 3,278,342 1.42% TRANSPORTATION $ 2,266,997 $ 2,307,282 $ 2,288,936 -0.80% MAINTENANCE $ 418,271 $ 4750507 $ 475,398 -0.02% NON-VEHICLE MAINTENANCE $ 100,835 $ 111,970 $ 115,421 3.08% ADMNISTRATION $ 343,831 $ 337,601 $ 398,587 18.06% FRINGES $ 1,698,737 $ 1,795,402 $ 1,710,735 -4.72% RCA $ 253,722 $ 268,423 $ 274,237 2.17% PENSION $ 103,594 $ 114,311 $ 118,244 3.44% GROUP HEALTH INSURANCE $ 903,042 $ 948,262 $ 856,029 -9.73% DENTAL INSURANCE $ 17,784 $ 18,584 $ 19,054 2.53% LIFE INSURANCE $ 9,541 $ 8,618 $ 12,209 41.67% DISABILITY INSURANCE $ 18,490 $ 17,521 $ 19,299 10.15% FUTA $ 10,414 $ 7,168 $ 7,942 10.80% SUTA $ 11,939 $ 11,998 $ 8,579 -28.50% WORKERS COMPENSATION $ 73,398 $ 76,657 $ 79,650 3.90% HOLIDAY $ 72,475 $ 92,141 $ 84,694 -8.08% PAID DAYS OFF $ 177,223 $ 179,736 $ 178,638 -0.61% OTHER PAID ABSENCES $ 2,802 $ 4,555 $ 4,410 -3.18% UNIFORMS $ 41,271 $ 43,722 $ 43,919 0.45% OTHER FRINGE BENEFITS $ 3,042 $ 3,706 $ 3,831 3.37% SERVICES $ 517,506 $ 530,453 $ 511,456 -3.58% SECURITY $ 57,715 $ 59,456 $ 76,189 28.14% CONTRACT SERVICES-MAINTENANCE $ 69,765 $ 53,935 $ 52,710 -2.27% CONTRACT SERVICES-ADMINISTRATION $ 390,026 $ 417,062 $ 382,557 -8.27% MATERIALS&SUPPLIES $ 1,911,115 $ 1,874,023 $ 1,807,101 -3.57% FUEL-STAR $ 138,555 $ 90,000 $ - -100.00% FUEL-REVENUE VEHICLES $ 1,357,532 $ 1,331,273 $ 1,317,417 -1.04% FUEL-SERVICE VEHICLES $ 17,038 S 18,214 $ 19,047 4.57% OIL $ 21,026 $ 21,851 $ 25,437 16.41% OTHER LUBRICANTS i $ 15,140 $ 15,044 $ 19,758 31.33% TIRES $ 69,152 $ 82,955 $ 88,997 7.28% 1 PARTS $ 172,567 $ 159,500 5 181,000 13.48% COMBINED DEPARTMENT EXPENSES D5 3 GREATER ROANOKE TRANSIT COMPANY COMBINED BUDGET(Valley Metro,Smartway,Trolley,Smartway Connector) FY 14 FY12 ACTUAL FY 13 BUDGET FY 14 BUDGET %DIFF COMBINED BUDGET-SYSTEM OTHER M&S $ 120,105 $ 155,186 $ 155,445 0.17% UTILITIES $ 221,824 $ 276,670 $ 248,577 -10.15% INSURANCE $ 339,430 $ 419,324 $ 371,069 -11.51% GENERAL LIABILITY-VEHICLE $ 310,193 $ 389,231 $ 340,976 -12.40% GENERAL LIABILITY-TANK,BLDG,ETC. $ 29,237 $ 30,093 $ 30,093 0.00% MISCELLANEOUS EXPENSES $ 946,006 $ 907,784 $ 1,092,975 20.40% PURCHASED TRANSPORTATION $ 919,910 $ 875,234 $ 1,060,092 21.12% OTHER MISCELLANEOUS $ 26,096 $ 32,550 $ 32,883 1.02% TOTAL EXPENSES $ 8,764,552 $ 9,036,016 $ 9,020,255 -0.17% COMBINED DEPARTMENT EXPENSES D5 4 GREATER ROANOKE TRANSIT COMPANY COMBINED PROPOSED BUDGET(Valley Metro,Smartway,Trolley,Smartway Connector) FY 14 FY12 ACTUAL FY13 BUDGET FY14 BUDGET %DIFF TRANSPORTATION LABOR HOURLY EMPLOYEES $ 1,959,949 $ 1,989,320 $ 1,976,747 -0.63% SALARY EMPLOYEES $ 307,048 $ 317,962 $ 312489 -1.82% TOTAL LABOR $ 2,266,997 $ 2,307,282 $ 2,288,936 -0.80% FRINGES FICA 5 188,371 $ 194,325 $ 194705 0.20% PENSION $ 70,637 S 76,206 $ 76,483 0.36% GROUP HEALTH INSURANCE $ 661,347 $ 672,774 $ 624,275 -7.21% DENTAL INSURANCE $ 11,021 $ 11,466 $ 11,110 -3.10% LIFE INSURANCE $ 7,229 $ 6,236 $ 9,071 45.46% DISABILITY INSURANCE $ 16,248 $ 15,186 $ 16,832 10.84% FUTA $ 7,897 $ 5,264 $ 5,828 10.71% SUTA $ 9,056 $ 8,802 $ 6,249 -29.00% WORKMEN'S COMPENSATION $ 52,239 $ 53,470 $ 55,432 3.67% HOLIDAY $ 60,679 $ 78,290 $ 71,795 -8.30% PAID DAYS OFF $ 153,928 $ 150,984 5 150,038 -0.63% OTHER PAID ABSENCES $ 2,473 $ 3,635 $ 3,495 -3.85% UNIFORMS $ 26,299 $ 26,475 $ 27,675 4.53% OTHER FRINGE BENEFITS $ 1,739 $ 1,918 $ 1,918 0.00% TOTAL FRINGE BENEFITS 5 1,269,163 $ 1,305,031 $ 1,254,906 -3.84% 05 i,i,r. GREATER ROANOKE TRANSIT COMPANY COMBINED PROPOSED BUDGET(Valley Metro,Smartway,Trolley,Smartway Connector) FY 14 FY12 ACTUAL FY13 BUDGET FY14 BUDGET %DIFF SERVICES SECURITY-ZONAR $ - $ - $ 17,559 0.00% SECURITY-PROFESSIONAL $ 57,715 $ 59,456 $ 59,456 0.00% TOTAL SERVICES $ 57,715 $ 59,456 $ 77,015 29.53% MATERIALS&SUPPLIES FUEL-STAR $ 138,555 $ 90,000 $ - -100.00% FUEL $ 1,357,532 S 1,331,273 $ 1,317,417 -1.04% OIL $ 21,026 $ 21,271 $ 24,857 16.86% OTHER LUBRICANTS $ 15,140 $ 14536 S 19,250 32.43% TIRES&TUBES $ 68,416 $ 81,155 $ 87,197 7.45% TICKETS,TRANSFERS $ 33,258 $ 32,000 $ 36,300 13.44% TOTAL MATERIALS AND SUPPLIES $ 1,633,927 $ 1,570,235 $ 1,485,021 -5.43% TOTAL TRANSPORTATION $ 5,227,802 $ 5,242,004 $ 5,105,878 -2.60% D5 a GREATER ROANOKE TRANSIT COMPANY COMBINED PROPOSED BUDGET(Valley Metro,Smartway,Trolley,Smartway Connector) FY 14 FY12 ACTUAL FY13 BUDGET FY19 BUDGET %DIFF MAINTENANCE . LABOR HOURLY EMPLOYEES $ 325.892 $ 381,096 $ 379,099 -0.52% SALARY EMPLOYEES $ 92,379 $ 94,411 $ 96,299 2.00% SALARY EMPLOYEES-NV MAINTENANCE $ 100,835 $ 111,970 $ 115,421 3.08% TOTAL LABOR $ 519,106 $ 587,477 $ 590,819 0.57% FRINGES FICA $ 32,465 $ 39705 $ 40,135 1.08% PENSION $ 12,673 $ 15,571 $ 16,340 4.94% GROUP HEALTH INSURANCE 5 123,050 $ 152,210 $ 118,270 -22.30% DENTAL INSURANCE $ 2,156 $ 2,363 $ 2,539 7.45% LIFE INSURANCE 5 1,068 $ 1,145 $ 1,497 30.74% DISABILITY INSURANCE $ 2,242 $ 2,335 $ 2,467 5.65% FUTA 5 1,203 $ 952 $ 1,002 5.25% SUTA $ 1,396 $ 1,596 $ 1,098 -31.20% WORKMEN'S COMPENSATION $ 9,257 $ 10,869 $ 11,347 4.40% HOLIDAY $ 11,796 $ 13,851 $ 12,899 -6.87% PAID DAYS OFF 5 23,295 $ 28,752 $ 28,600 -0.53% OTHER PAID ABSENCES $ 329 $ 920 5 915 -0.54% UNIFORMS $ 12,281 $ 13,389 $ 12,861 -194% OTHER FRINGE BENEFITS S 1,303 5 1,788 5 1,913 6.99% NON-VEHICLE-FICA $ 7,209 $ 8,566 5 8,829 3.07% NON-VEHICLE-PENSION $ 2,892 $ 3,359 $ 3,463 3.10% NON-VEHICLE-GROUP HEALTH $ 37,837 $ 42,032 $ 37652 -10.42% NON-VEHICLE-DENIAL $ 1,304 $ 1,437 5 1,496 4.11% NON-VEHICLE-LIFE INSURANCE $ 352 5 375 $ 455 21.33% NON-VEHICLE-FUTA 5 362 5 280 $ 280 0.00% NON-VEHICLE-SUTA $ 428 5 472 $ 292 -38.14% NON-VEHICLE-WORKERS COMPENSATION 1 $ 2,645 5 2,863 $ 2,814 -171% NON-VEHICLE-UNIFORMS $ 1,889 $ 2,538 S 1,983 -21.87%I NON-VEH OTHER FRINGE BENEFITS 5 - $ - .5 - 0.00% TOTAL FRINGE BENEFITS $ 289,932 $ 347,368 $ 309,147 -11.00% GREATER ROANOKE TRANSIT COMPANY COMBINED PROPOSED BUDGET(Valley Metro,Smartway,Trolley,Smartway Connector) FY 14 FY12 ACTUAL FY13 BUDGET FY14 BUDGET %DIFF SERVICES CONTRACT MAINT-RADIO $ 11,304 $ 13,199 $ 13,199 0.00% CONTRACT MAINT-1108 $ 41,190 $ 26,584 $ 26,714 0.49% CONTRACT MAINT-CC $ 17,271 5 14,152 S 13,011 -8-06% TOTAL SERVICES $ 69,765 $ 53,935 $ 52,924 -1.87% MATERIALS&SUPPLIES FUEL-SERV VEH $ 17,038 $ 18,214 $ 19,047 4.57% OIL-SERVICE VEHICLES $ - $ 580 $ 580 0.00% OTHER LUBRICANTS-SERVICE VEHICLES $ - $ 508 $ 508 0.00% TIRES&TUBES-SERV VEH $ 736 $ 1,800 $ 1,800 0.00% PARTS-REVENUE VEHICLES $ 163,457 $ 143,000 $ 170,000 18.88% PARTS-NON STOCK $ 4,609 $ 5,500 $ 5,500 0.00% PARTS-OTHER $ 1,278 $ 5,000 $ 2,000 -60.00% REVENUE CLEANING SUPP $ 4,383 $ 5,045 $ 4,886 -3.15% PARTS-FAREBOX $ 3,223 S 6,400 $ 3,900 -39.06% JANITORIAL SUPPLIES $ 13,115 $ 17,800 $ 17,800 0.00% MAT&SUPPLIES-1108 $ 25,256 $ 20,000 $ 25,336 26.68% MAT&SUPPLIES-CC $ 649 $ 4,000 $ 1,000 -75.00% TOTAL MATERIALS&SUPPLIES $ 233,744 $ 227,847 $ 252,357 10.76% INSURANCE PHYSICAL DAMAG E-VEH $ 68,243 $ 86,765 $ 71,586 -1749% PHYSICAL DAMAGE-1108 $ 12,256 $ 12,256 $ 12,256 0.00% PHYSICAL DAMAGE-CC $ 10,028 $ 10,028 $ 10,028 0.00% TOTAL INSURANCE $ 90,527 $ 109,049 $ 93,870 -13.92% TOTAL MAINTENANCE $ 1,202,574 $ 1,325,676 $ 1,299,117 -2.00% D5 GREATER ROANOKE TRANSIT COMPANY COMBINED PROPOSED BUDGET(Valley Metro,Smartway,Trolley,Smartway Connector) FY 14 FY 12 ACTUAL FY 13 BUDGET FY 14 BUDGET %DIFF ADMINISTRATIVE LABOR SALARY EMPLOYEES $ 343831 $ 337,601 $ 398,587 18.06% TOTAL LABOR $ 343,831 $ 337,601 $ 398,587 18.06% FRINGES FICA $ 25,677 5 25,827 $ 30,568 18.36% PENSION $ 17,392 $ 19,175 $ 21,958 14.51% GROUP HEALTH INSURANCE $ 80,808 $ 81,246 $ 75,832 -666% DENTAL INSURANCE 5 3,303 $ 3,318 $ 3,909 17.81% LIFE INSURANCE $ 892 $ 862 $ 1,186 37.59% FUTA $ 952 $ 672 $ 832 23.81% SUTA $ 1,059 $ 1,128 $ 940 -16.67% WORKMEN'S COMPENSATION $ 9,257 $ 9,455 $ 10,057 6.37% UNIFORMS $ 802 $ 1,320 $ 1,400 6.06% TOTAL FRINGE BENEFITS $ 140,142 $ 143,003 $ 146,682 2.57% SERVICES MANAGEMENT SERVICES 5 262,400 $ 262,400 $ 256,400 -2.29% AUDIT FEES $ 20,300 $ 20,900 $ 21,400 2.39% LEGAL FEES 5 - 5 1.000 5 1,000 0.00% BROKER FEES HEALTH INSURANCE $ 15,160 $ 18819 $ 18,807 0.00% BROKER FEES-COMMERCIAL INSURANCE 5 25,000 $ 29,041 $ 29,008 0.00% CONTRACT MAINTENANCE $ 32,458 $ 49,390 5 19,390 -60.74% CONI RACT SERVICES $ 34,708 $ 35,512 $ 35,512 0.00% TOTAL SERVICES $ 390,026 $ 417,062 $ 381,517 -8.52%, D6 a GREATER ROANOKE TRANSIT COMPANY COMBINED PROPOSED BUDGET(Valley Metro,Smartway,Trolley,Smartway Connector) FY 19 FY12 ACTUAL FY13 BUDGET FY19 BUDGET %DIFF MATERIALS&SUPPLIES TRAINING $ 908 $ 3,500 $ 3,500 0.00% GENERAL OFFICE $ 24,279 S 30,206 5 31,174 3-20% SCHEDULES,MAPS $ 5,303 $ 16,200 $ 16,200 0.00% PROMOTIONAL SUPPLIES $ 5,565 $ 12,186 $ 5,000 -58.97% SAFETY 5 7,389 $ 13,849 $ 13,849 0.00% TOTAL MATERIALS AND SUPPLIES $ 43,444 $ 75,941 $ 69,723 -8.19% UTILITIES TELEPHONE 5 32,052 $ 37,260 $ 36,364 .240% ELECTRICITY-1108 $ 47,067 $ 64,133 $ 53,936 -15.90% ELECTRICITY-CC $ 90,977 $ 90,000 $ 95,000 5.56% WATER&SEWER-1108 S 12,301 $ 12,307 $ 12,307 0.00% WATER&SEWER-CC $ 10,298 $ 12,590 $ 10,590 -15.89% GAS-1108 $ 12,524 $ 37380 S 17380 -53.50% GAS-CC $ 16,605 $ 23,000 $ 23,000 0.00% TOTAL UTILITIES $ 221,824 $ 276,670 $ 248,577 -10.15% INSURANCE GENERAL LIAB-VEHICLES $ 241,950 $ 302,466 $ 269,390 -10.94% GENERAL LIAR-GARAGE KEEPEERS $ 2,441 $ 2,442 $ 2,442 0.00% GENERAL LIABILITY-1108 $ 1,817 $ 2,000 $ 2,000 0.00% GENERAL LIABILITY-CC $ 2,328 S 3.000 $ 3,000 0.00% GENERAL LIAB-UMBRELLA $ - $ - S - 0.00% FIDELITY-DIRECTORS S - $ - S - 0.00% FIDELITY-EMPLOYEES 5 367 5 367 $ 367 0-00% TOTAL INSURANCE I $ 248,903 $ 310,275 $ 277,199 -10.66% 05 GREATER ROANOKE TRANSIT COMPANY COMBINED PROPOSED BUDGET(Valley Metro,5martway,Trolley,5martway Connector) FY 14 FY12 ACTUAL FY 13 BUDGET FY 14 BUDGET %DIFF PURCHASHED TRANSPORTATION STAR CONTRACT FEE $ 775,702 $ 743,701 $ 925,138 2440% STAR-ARC $ 142,963 $ 129,343 $ 132,978 2.81% STAR-NEW FREEDOM $ 1,245 $ 2,190 $ 1,976 -977% HOLLINS EXPRESS CONTRACT FEE 5 - $ - $ - 0.00% MAROON EXPRESS CONTRACT FEE $ $ - S - 0.00% FERRUM EXPRESS CONTRACT FEE $ - 5 - $ - 0.00% CARILION NIGHTLINE CONTRACT FEE $ - $ - 5 - 000% TOTAL PURCHASED TRANSPORTATION $ 919,910 $ 875,234 $ 1,060,092 21.12% MISCELLANEOUS DUES&SUB $ 6,933 $ 7,500 $ 7,500 0.00% TRAVEL&MEETINGS 5 2,919 $ 6,400 $ 6,400 0.00% BAD DEBT EXPENSE $ 1,066 $ 700 $ 700 100% ADVERTISING I $ 7,882 $ 9,000 $ 9,000 0.00% OTHER MISCELLANEOUS EXPENSES $ 1,083 $ 1,500 $ 1,550 133% POSTAGE 5 6,213 5 7,450 $ 7,733 3.80% TOTAL MISCELLANEOUS $ 26,096 $ 32,550 $ 32,883 1.02% TOTAL ADMINISTRATIVE $ 2,334,176 $ 2,468,336 $ 2,615,260 5.95% TOTAL ALL DEPARTMENTS $ 8,764,552 $ 9,036,016 $ 9,020,255 -0.17% 6)5 GREATER ROANOKE TRANSIT COMPANY May 1 , 2013 David A. Bowers, Mayor David B. Trinkle, Vice-Mayor William D. Bestpitch Raphael E. Ferris Sherman P. Lea Anita J. Price Court G. Rosen Dear Mayor Bowers and Members of City Council: As the representatives of the City of Roanoke, the sole stockholder of the Greater Roanoke Transit Company and pursuant to Paragraph 3, Article II, By-Laws of the Greater Roanoke Transit Company, this is to advise you that the Annual Meeting of the Stockholders' will be held on Monday,June 17, 2013, at 1 :30 p.m., in the City Council Chamber, Room 450, Noel C. Taylor Municipal Building, 215 Church Avenue, S. W., Roanoke, Virginia. Sincerely, 1„stAl..40;A001 IY(017S/ Stephanie M. Moon Secretary, GRTC pc: Christopher P. Morrill, Vice President of Operations, GRTC Daniell Callaghan, General Counsel, GRTC Ann H. Shawver, Treasurer, GRTC Sherman M. Stovall, Assistant Vice President of Operations, GRTC Gary E. Tegenkamp, Assistant General Counsel, GRTC Carl Palmer, General Manager, Valley Metro, P. O. Box 13247, Roanoke, Virginia 24032 Members of the GRTC Board of Directors K:\GRTC.13\Call Letter for Stockholders'Meeting.doc GREATER ROANOKE TRANSIT COMPANY June 13, 2013 David A. Bowers, Mayor Court Rosen, Vice-Mayor William D. Bestpitch Raphael E. Ferris Sherman P. Lea Anita J. Price David B. Trinkle Dear Mayor Bowers and Members of the Council: The Annual Meeting of the Stockholder's of the Greater Roanoke Transit Company will be held on Monday, June 17, 2013, at 1:30 p.m., in the City Council Chamber, fourth floor, Noel C. Taylor Municipal Building, 215 Church Avenue, S. W., Roanoke, Virginia. I am attaching copy of the minutes of the Annual Meeting held on Monday, June 18, 2012. Sincerely, -5111ALLILAY). net3-") Stephanie M. Moon Secretary Attachment pc: Christopher P. Morrill, City Manager Daniel J. Callaghan, City Attorney Ann H. Shawver, Director of Finance Sherman M. Stovall, Assistant City Manager for Operations Drew Harmon, Municipal Auditor Gary E. Tegenkamp, Assistant Attorney Carl Palmer, General Manager, Valley Metro K:\GRTC.13\Annual Stockholders'Call Letter and Agenda.doc S . STOCKHOLDER'S ANNUAL MEETING GREATER ROANOKE TRANSIT COMPANY MONDAY, JUNE 17, 2013 1 :30 P.M. CITY COUNCIL CHAMBER AGENDA 1. Call to Order- Roll Call. Council Members Lea and Trinkle was absent. 2. Approval of Minutes: Annual Stockholder's meeting held on Monday, June 18, 2012. Without objection, reading of the minutes were dispensed with and approved as recorded. 3. Statement of Purpose. Mayor David A. Bowers. The purpose of the meeting was to entertain nominations for the election of Directors of the Greater Roanoke Transit Company for terms of one year each, commencing July 1, 2013. • Election of Seven Directors Following individuals were elected as to serve as members (based on positions) of the Board of Directors of GRTC, effective July 1, 2013 for a term of one year: o Two Members of Council: Mayor David Bowers and Vice Mayor Court Rosen o Two City staff Representatives: Mark Jamison and Michael Shockley; o One Physically-Challenged Representative: Karen Michalski- Karney o One Regional Representative: Melinda Payne o One Citizen at Large Representative: Curtis Mills 4. Adjourn. 1:33 p.m. K:\GRTC.13\Annual Stockholders Action Agenda.doc A GREATER ROANOKE TRANSIT COMPANY BOARD OF DIRECTORS June 24, 2012 The Honorable David A. Bowers Mayor Roanoke, Virginia Dear Mayor Bowers: At the Annual Meeting of the Greater Roanoke Transit Company Stockholders held on Monday, June 17, 2013, you were reappointed as President of the Greater Roanoke Transit Company Board of Directors for a one year term ending June 30, 2014. Enclosed you will find a Certificate of your reappointment and an Oath or Affirmation of Office which must be administered by a Clerk of the Circuit Court of the City of Roanoke, located on the third floor of the Roanoke City Courts Facility, 315 Church Avenue, S. W. Please return one copy of the Oath of Office to Room 456 in the Noel C. Taylor Municipal Building, 215 Church Avenue, S. W., prior to serving in the capacity to which you were reappointed. Pursuant to Section 2.2-3702, Code of Virginia (1950), as amended, I am enclosing copy of the Virginia Freedom of Information Act. The Act requires that you be provided with a copy within two weeks of your reappointment and each member is required "to read and become familiar with provisions of the Act." Sincerely, SA:st}en . ) Stephanie M. Moon, MMC Secretary Enclosures pc: Carl L. Palmer, General Manager, Valley Metro, P.O. Box 13247, Roanoke, Virginia 24032 Christopher P. Morrill, Vice President of Operations Daniel J. Callaghan, General Counsel Sherman M. Stovall, Assistant Vice-President of Operations Gary Tegenkamp, Assistant General Counsel I' w COMMONWEALTH OF VIRGINIA To-wit: CITY OF ROANOKE I, Stephanie M. Moon, Secretary, and as such Secretary of the Greater Roanoke Transit Company and keeper of the records thereof, do hereby certify that at the annual meeting of the Greater Roanoke Transit Company Stockholders which was held on the seventeenth day of June 2013, DAVID A. BOWERS was reappointed as President of the Greater Roanoke Transit Company Board of Directors for a one-year term of office ending June 30, 2014. Given under my hand and the Seal of the Greater Roanoke Transit Company this twenty-fourth day of June 2013. Attit:ILL, ir) .Wlh.) Secretary • Oath or Affirmation of Office Commonwealth of Virginia, City of Roanoke, to-wit: I, David A. Bowers, do solemnly swear or (affirm) that I will support the Constitution of the United States of America and the Constitution of the Commonwealth of Virginia, and that I will faithfully and impartially discharge and perform all the duties incumbent upon me as President of the Greater Roanoke Transit Company Board of Directors for a one-year term of office ending June 30, 2014, according to the best of my ability. So help me God. DAVID A. BOWERS The foregoing oath of office was taken, sworn to, and subscribed before me by David A. S� Bowers this 1 day of —0—LA-V, 2013. Brenda S. Hamilton, Clerk of the Circuit Court By cats , Clerk 1 S GREATER ROANOKE TRANSIT COMPANY BOARD OF DIRECTORS June 24, 2013 The Honorable Court G. Rosen Vice-Mayor Roanoke, Virginia Dear Vice-Mayor Rosen: At the Annual Meeting of the Greater Roanoke Transit Company Stockholders held on Monday, June 17, 2013, you were appointed as Vice President of the Greater Roanoke Transit Company Board of Directors for a one year term ending June 30, 2014. Enclosed you will find a Certificate of your appointment and an Oath or Affirmation of Office which must be administered by a Clerk of the Circuit Court of the City of Roanoke, located on the third floor of the Roanoke City Courts Facility, 315 Church Avenue, S. W. Please return one copy of the Oath of Office to Room 456 in the Noel C. Taylor Municipal Building, 215 Church Avenue, S. W., prior to serving in the capacity to which you were appointed. Pursuant to Section 2.2-3702, Code of Virginia (1950), as amended, I am enclosing copy of the Virginia Freedom of Information Act. The Act requires that you be provided with a copy within two weeks of your appointment and each member is required "to read and become familiar with provisions of the Act." Sincerely, itt2ria,,LA Stephanie M. Moon, MMC Secretary Enclosures pc: Carl L. Palmer, General Manager, Valley Metro, P.O. Box 13247, Roanoke, Virginia 24032 Christopher P. Morrill, Vice President of Operations Daniel J. Callaghan, General Counsel Sherman M. Stovall, Assistant Vice-President of Operations Gary Tegenkamp, Assistant General Counsel COMMONWEALTH OF VIRGINIA To-wit: CITY OF ROANOKE ) I, Stephanie M. Moon, Secretary, and as such Secretary of the Greater Roanoke Transit Company and keeper of the records thereof, do hereby certify that at the annual meeting of the Greater Roanoke Transit Company Stockholders which was held on the seventeenth day of June 2013, COURT G. ROSEN was appointed as Vice President of the Greater Roanoke Transit Company Board of Directors for a one-year term of office ending June 30, 2014. Given under my hand and the Seal of the Greater Roanoke Transit Company this twenty-fourth day of June 2013. Kt4astid 6•-) D Secretary 1. GREATER ROANOKE TRANSIT COMPANY BOARD OF DIRECTORS June 24, 2013 Mark Jamison, Manager Streets and Traffic Division Roanoke, Virginia Dear Mr. Jamison: At the Annual Meeting of the Greater Roanoke Transit Company Stockholders held on Monday, June 17, 2013, you were reappointed as a member of the Greater Roanoke Transit Company Board of Directors for a one year term ending June 30, 2014. Enclosed you will find a Certificate of your reappointment and an Oath or Affirmation of Office which must be administered by a Clerk of the Circuit Court of the City of Roanoke, located on the third floor of the Roanoke City Courts Facility, 315 Church Avenue, S. W. Please return one copy of the Oath of Office to Room 456 in the Noel C. Taylor Municipal Building, 215 Church Avenue, S. W., prior to serving in the capacity to which you were reappointed. Pursuant to Section 2.2-3702, Code of Virginia (1950), as amended, I am enclosing copy of the Virginia Freedom of Information Act. The Act requires that you be provided with a copy within two weeks of your reappointment and each member is required "to read and become familiar with provisions of the Act." Sincerely, Stephanie M. Moon, MMC Secretary Enclosures pc: Carl L. Palmer, General Manager, Valley Metro, P.O. Box 13247, Roanoke, Virginia 24032 Christopher P. Morrill, Vice President of Operations Daniel J. Callaghan, General Counsel Sherman M. Stovall, Assistant Vice-President of Operations Gary Tegenkamp, Assistant General Counsel 1 COMMONWEALTH OF VIRGINIA To-wit: CITY OF ROANOKE I, Stephanie M. Moon, Secretary, and as such Secretary of the Greater Roanoke Transit Company and keeper of the records thereof, do hereby certify that at the annual meeting of the Greater Roanoke Transit Company Stockholders which was held on the seventeenth day of June 2013, MARK JAMISON was reappointed as a member of the Greater Roanoke Transit Company Board of Directors for a one-year term of office ending June 30, 2014. Given under my hand and the Seal of the Greater Roanoke Transit Company this twenty fourth day of June 2013. 44AL Secretary Oath or Affirmation of Office Commonwealth of Virginia, City of Roanoke, to-wit: I, Mark Jamison, do solemnly swear or (affirm) that I will support the Constitution of the United States of America and the Constitution of the Commonwealth of Virginia, and that I will faithfully and impartially discharge and perform all the duties incumbent upon me as a member of the Greater Roanoke Transit Company Board of Directors for a one-year term of office ending June 30, 2014, according to the best of my ability. So help me God. MARK JAMI N The foregoing oath of office was taken, sworn to, and subscribed before me by Mark Jamison this `mot day of ;v..\ Y 2013. Brenda S. Hamilton, Clerk of the Circuit Court By , Clerk Alt GREATER ROANOKE TRANSIT COMPANY BOARD OF DIRECTORS June 24, 2012 Michael B. Shockley Budget Administrator Office of Management and Budget Roanoke, Virginia Dear Mr. Shockley: At the Annual Meeting of the Greater Roanoke Transit Company Stockholders held on Monday, June 17, 2013, you were appointed as a member of the Greater Roanoke Transit Company Board of Directors for a one year term ending June 30, 2014. Enclosed you will find a Certificate of your appointment and an Oath or Affirmation of Office which must be administered by a Clerk of the Circuit Court of the City of Roanoke, located on the third floor of the Roanoke City Courts Facility, 315 Church Avenue, S. W. Please return one copy of the Oath of Office to Room 456 in the Noel C. Taylor Municipal Building, 215 Church Avenue, S. W., prior to serving in the capacity to which you were appointed. Pursuant to Section 2.2-3702, Code of Virginia (1950), as amended, I am enclosing copy of the Virginia Freedom of Information Act. The Act requires that you be provided with a copy within two weeks of your appointment and each member is required "to read and become familiar with provisions of the Act." Sincerely, WiAitAY). 1Y- 1.0Y Stephanie M. Moon, MMC Secretary Enclosures pc: Carl L. Palmer, General Manager, Valley Metro, P.O. Box 13247, Roanoke, Virginia 24032 Christopher P. Morrill, Vice President of Operations Daniel J. Callaghan, General Counsel Sherman M. Stovall, Assistant Vice-President of Operations Gary Tegenkamp, Assistant General Counsel S COMMONWEALTH OF VIRGINIA To-wit: CITY OF ROANOKE I, Stephanie M. Moon, Secretary, and as such Secretary of the Greater Roanoke Transit Company and keeper of the records thereof, do hereby certify that at the annual meeting of the Greater Roanoke Transit Company Stockholders which was held on the seventeenth day of June 2013, MICHAEL B. SHOCKLEY was appointed as a member of the Greater Roanoke Transit Company Board of Directors for a one-year term of office ending June 30, 2014. Given under my hand and the Seal of the Greater Roanoke Transit Company this twenty-fourth day of June 2012. NYtov..) Secretary 'a Oath or Affirmation of Office Commonwealth of Virginia, City of Roanoke, to-wit: I, MICHAEL B. SHOCKLEY, do solemnly swear that I will support the Constitution of the United States of America and the Constitution of the Commonwealth of Virginia, and that I will faithfully and impartially discharge and perform all the duties incumbent upon me as a member of the Greater Roanoke Transit Company Board of Directors for a one-year term of office ending June 30, 2014, according to the best of my ability. So help me God. i� MI r" 'A L=. SHOC LEY The foregoing oath of office as taken, sworn to, and subscribed before me by P. Michael B. Shockley this day of /,/ 2013. Brenda S. Hamilton, Clerk of the Cir uit Court � By /nncL / , (a' , Clerk • GREATER ROANOKE TRANSIT COMPANY BOARD OF DIRECTORS June 24, 2013 Karen Michalski-Karney, Executive Director Blue Ridge Transitional Living Center 1502 Williamson Road, N. E.-Suite B Roanoke, Virginia 24012-5100 Dear Ms. Karney: At the Annual Meeting of the Greater Roanoke Transit Company Stockholders held on Monday, June 17, 2013, you were reappointed as a member of the Greater Roanoke Transit Company Board of Directors for a one year term ending June 30, 2014. Enclosed you will find a Certificate of your reappointment and an Oath or Affirmation of Office which must be administered by a Clerk of the Circuit Court of the City of Roanoke, located on the third floor of the Roanoke City Courts Facility, 315 Church Avenue, S. W. Please return one copy of the Oath of Office to Room 456 in the Noel C. Taylor Municipal Building, 215 Church Avenue, S. W., prior to serving in the capacity to which you were reappointed. Pursuant to Section 2.2-3702, Code of Virginia (1950), as amended, I am enclosing copy of the Virginia Freedom of Information Act. The Act requires that you be provided with a copy within two weeks of your reappointment and each member is required "to read and become familiar with provisions of the Act." Sincerely, a 1 i 1 . lj`!`J Stephanie M. Moon, MMC Secretary Enclosures pc: Carl L. Palmer, General Manager, Valley Metro, P.O. Box 13247, Roanoke, Virginia 24032 Christopher P. Morrill, Vice President of Operations Daniel J. Callaghan, General Counsel Sherman M. Stovall, Assistant Vice-President of Operations Gary Tegenkamp, Assistant General Counsel COMMONWEALTH OF VIRGINIA To-wit: CITY OF ROANOKE I, Stephanie M. Moon, Secretary, and as such Secretary of the Greater Roanoke Transit Company and keeper of the records thereof, do hereby certify that at the annual meeting of the Greater Roanoke Transit Company Stockholders which was held on the seventeenth day of June 2013, KAREN MICHALSKI-KARNEY was reappointed as a member of the Greater Roanoke Transit Company Board of Directors for a one-year term of office ending June 30, 2014. Given under my hand and the Seal of the Greater Roanoke Transit Company this twenty-fourth day of June 2013. Secretary t Oath or Affirmation of Office Commonwealth of Virginia, City of Roanoke, to-wit: I, Karen Michalski-Karney, do solemnly swear or (affirm) that I will support the Constitution of the United States of America and the Constitution of the Commonwealth of Virginia, and that I will faithfully and impartially discharge and perform all the duties incumbent upon me as a member of the Greater Roanoke Transit Company Board of Directors for a one-year term of office ending June 30, 2014, according to the best of my ability. So help me God. R 14144 ,04 MI CHALSKI-K A NEY The foregoing oath of office was taken, sworn to, and subscribed before me by Karen Michalski-Karney this lV 4 day of 2013. Brenda S. Hamilton, Clerk of the Circuit Court - ,,, / / /Bei- By 1rat.: _ /mil . - , Clerk / , r GREATER ROANOKE TRANSIT COMPANY BOARD OF DIRECTORS June 24, 2013 Melinda J. Payne, Director of Planning and Development City of Salem 722 Paragon Avenue Salem, Virginia 24153 Dear Ms. Payne: At the Annual Meeting of the Greater Roanoke Transit Company Stockholders held on Monday, June 17, 2013, you were appointed as a member of the Greater Roanoke Transit Company Board of Directors for a one year term ending June 30, 2014. Enclosed you will find a Certificate of your appointment and an Oath or Affirmation of Office which must be administered by a Clerk of the Circuit Court of the City of Roanoke, located on the third floor of the Roanoke City Courts Facility, 315 Church Avenue, S. W. Please return one copy of the Oath of Office to Room 456 in the Noel C. Taylor Municipal Building, 215 Church Avenue, S. W., prior to serving in the capacity to which you were appointed. Pursuant to Section 2.2-3702, Code of Virginia (1950), as amended, I am enclosing copy of the Virginia Freedom of Information Act. The Act requires that you be provided with a copy within two weeks of your appointment and each member is required "to read and become familiar with provisions of the Act." Sincerely, , . Stephanie M. Moon, MMC Secretary Enclosures pc: Carl L. Palmer, General Manager, Valley Metro, P.O. Box 13247, Roanoke, Virginia 24032 Christopher P. Morrill, Vice President of Operations Daniel J. Callaghan, General Counsel Sherman M. Stovall, Assistant Vice-President of Operations Gary Tegenkamp, Assistant General Counsel a COMMONWEALTH OF VIRGINIA To-wit: CITY OF ROANOKE ) I, Stephanie M. Moon, Secretary, and as such Secretary of the Greater Roanoke Transit Company and keeper of the records thereof, do hereby certify that at the annual meeting of the Greater Roanoke Transit Company Stockholders which was held on the seventeenth day of June 2013, MELINDA J. PAYNE was appointed as a member of the Greater Roanoke Transit Company Board of Directors for a one-year term of office ending June 30, 2014. Given under my hand and the Seal of the Greater Roanoke Transit Company this twenty-fourth day of June 2013. 1 -4.ka,AdJ • lllc�� Secretary GREATER ROANOKE TRANSIT COMPANY BOARD OF DIRECTORS June 24, 2012 Curtis E. Mills 2125 Yellow Mountain Road, S. W. Apartment 110 Roanoke, Virginia 24014 Dear Mr. Mills: At the Annual Meeting of the Greater Roanoke Transit Company Stockholders held on Monday, June 17, 2013, you were reappointed as a member of the Greater Roanoke Transit Company Board of Directors for a one year term ending June 30, 2014. Enclosed you will find a Certificate of your reappointment and an Oath or Affirmation of Office which must be administered by a Clerk of the Circuit Court of the City of Roanoke, located on the third floor of the Roanoke City Courts Facility, 315 Church Avenue, S. W. Please return one copy of the Oath of Office to Room 456 in the Noel C. Taylor Municipal Building, 215 Church Avenue, S. W., prior to serving in the capacity to which you were reappointed. Pursuant to Section 2.2-3702, Code of Virginia (1950), as amended, I am enclosing copy of the Virginia Freedom of Information Act. The Act requires that you be provided with a copy within two weeks of your appointment and each member is required "to read and become familiar with provisions of the Act." Sincere) , tta.Asis\M. Yletfc) Stephanie M. Moon, MMC Secretary Enclosures pc: Carl L. Palmer, General Manager, Valley Metro, P.O. Box 13247, Roanoke, Virginia 24032 Christopher P. Morrill, Vice President of Operations Daniel J. Callaghan, General Counsel Sherman M. Stovall, Assistant Vice-President of Operations Gary Tegenkamp, Assistant General Counsel COMMONWEALTH OF VIRGINIA To-wit: CITY OF ROANOKE I, Stephanie M. Moon, Secretary, and as such Secretary of the Greater Roanoke Transit Company and keeper of the records thereof, do hereby certify that at the annual meeting of the Greater Roanoke Transit Company Stockholders which was held on the seventeenth day of June 2013, CURTIS E. MILLS was reappointed as a member of the Greater Roanoke Transit Company Board of Directors for a one-year term of office ending June 30, 2014. Given under my hand and the Seal of the Greater Roanoke Transit Company this twenty-fourth day of June 2013. D°P") Secretary Oath or Affirmation of Office Commonwealth of Virginia, City of Roanoke, to-wit: I, CURTIS E. MILLS, do solemnly swear that I will support the Constitution of the United States of America and the Constitution of the Commonwealth of Virginia, and that I will faithfully and impartially discharge and perform all the duties incumbent upon me as a member of the Greater Roanoke Transit Company Board of Directors for a one-year term of office ending June 30, 2014, according to the best of my ability. So help me God. 7I CURTISMILLS ti U The foregoing oath of office was taken, sworn to, and subscribed before me by Curtis E. rd Mills this 0 day of JWQ5 2013. J Brenda S. Hamilton, Clerk of the Circuit Court Bytes ICY Depwiy, Clerk GREATER ROANOKE TRANSIT COMPANY BOARD OF DIRECTORS June 13, 2013 David A. Bowers, President, and Members of the Greater Roanoke Transit Company Board of Directors Dear President Bowers and Members of the Board: The regular meeting of the Greater Roanoke Transit Company Board of Directors will be held on Monday, June 17, 2013, at 1:45 p.m., in the Council's Conference Room, Room 451, fourth floor, Noel C. Taylor Municipal Building, 215 Church Avenue, S. W., Roanoke, Virginia. Sincerely, 419-A41/44.,‘,/Arr, .fin.! Stephanie M. Moon Secretary pc: Christopher P. Morrill, Vice President of Operations, GRTC Daniel J. Callaghan, General Counsel, GRTC Ann H. Shawver, Treasurer, GRTC Drew Harmon, Municipal Auditor Sherman M. Stovall, Assistant Vice President of Operations, GRTC Gary E. Tegenkamp, Assistant General Counsel, GRTC Carl L. Palmer, General Manager, Valley Metro, P. O. Box 13247, Roanoke, Virginia 24032 K:\GRTC.13\June 17,2013 Meeting Notice.doc GREATER ROANOKE TRANSIT COMPANY BOARD OF DIRECTORS June 17, 2013 1 :45 P.M. COUNCIL'S CONFERENCE ROOM ROOM 450 AGENDA 1. Call to Order-- Roll Call. All Present 2. Approval of Minutes: Regular meeting of GRTC held on Monday, May 20, 2013. Without objection, reading of minutes were dispensed with and approved as recorded. 3. Reports of Officers: a. General Manager: 1 . Adoption of the Board of Directors' Meeting Schedule for the 2014 Fiscal Year. Adopted Resolution (7-0). 4. Other Business. Update provided regarding bus shelter at Valley View Mall. 5. Adjourn. 1:49 p.m. K:\GRTC.13\June 17,2013 Action Agenda.doc GREATER ROANOKE TRANSIT COMPANY BOARD OF DIRECTORS June 24, 2013 Carl L. Palmer, General Manager Valley Metro P. O. Box 13247 Roanoke, Virginia 24032 Dear Mr. Palmer: I am enclosing copy of a resolution establishing a specific meeting schedule for the Board of Directors of the Greater Roanoke Transit Company (GRTC). The abovementioned resolution was adopted by the Board of Directors at its regular meeting held on Monday, June 17, 2013. Sincerely, ka„,L . tom) Stephanie M. Moon Secretary • pc: Christopher P. Morrill, Vice-President of Operations Sherman M. Stovall, Assistant Vice-President of Operations Ann H. Shawver, Treasurer Dan Callaghan, General Counsel Gary Tegenkamp, Assistant General Counsel Troy A. Harmon, Municipal Auditor K:\GRTC\GRTC 2013Vune 17 con'espondence.doc BOARD OF DIRECTORS OF GREATER ROANOKE TRANSIT COMPANY A RESOLUTION ESTABLISHING A SPECIFIC MEETING SCHEDULE FOR THE BOARD OF DIRECTORS OF THE GREATER ROANOKE TRANSIT COMPANY(GRTC) WHEREAS, at the Board's June 17, 2013, meeting, the GRTC General Manager recommended that the Board adopt a specific meeting schedule for the 2014 Fiscal Year, which ends on June 30, 2014, as more fully set forth in the General Manager's report dated June 17, 2013, to this Board. THEREFORE, BE IT RESOLVED by the Board of Directors of GRTC as follows: 1. That the Board of Directors hereby approves and adopts the specific meeting schedule that is set forth below. Except for the meeting on June 16, 2014, the meetings are set to start at 1:00 p.m. and will be held in the Emergency Operations Center (EOC) Conference Room which is located on the first floor of the Noel C. Taylor Municipal Building, 215 Church Avenue, S.W., Roanoke, Virginia 24011, unless a different location is designated by the President or Secretary of the Board. The meeting for Monday, June 16, 2014, will be held at 1:45 p.m. in the City Council Conference Room, Room 451, on the fourth floor of the Noel C. Taylor Municipal Building, 215 Church Avenue, SW, Roanoke, Virginia 24011. In accordance with Article III, Section 4 of the GRTC By-Laws, the following meeting dates for the GRTC Board are approved for the 2014 Fiscal Year: July 15, 2013 (Monday, 1:00 p.m. —EOC) September 16, 2013 (Monday, 1:00 p.m. —EOC) November 18, 2013 (Monday, 1:00 p.m. —EOC) January 21, 2014 (Tuesday, 1:00 p.m. —EOC) March 17, 2014 (Monday, 1:00 p.m. —EOC) May 19, 2014 (Monday, 1:00 p.m. —EOC) June 16, 2014 (Monday, 1:45 p.m. — City Council Conference Room, Room 451) 1 2. The GRTC Board can hold additional meetings on an as-needed basis in accordance with the GRTC By-Laws. • 3. The schedule of meetings for the GRTC Board for subsequent fiscal years may be set annually by the Board at the June Board meeting, or at any other Board meeting as the Board may determine to be appropriate. • ATTEST: Date: l I7t AD 13 - Q Step anie M. Moon, Secretary K1 GET\Measures\Measures\GRTC\GRTC res establishing meeting schedule FY 2014.doc 2 i°' Valley :IT'f CLERK'13,IUPI12AM10 6 Greater Roanoke Transit Company Board of Directors Meeting June 17, 2013 David A. Bowers, President, and Members of the Board of Directors Greater Roanoke Transit Company Roanoke, Virginia Dear President Bowers and Members of the Board: Subject: Board of Directors Meeting Schedule for Fiscal 2014 Background At its June 18, 2012 meeting, the GRTC Board of Directors approved by Resolution its meeting schedule for the 2013 fiscal year. The Board needs to adopt a meeting schedule for the 2014 fiscal year. Recommendation The following GRTC Board of Directors meeting schedule is recommended for the 2014 fiscal year: 2013 2014 July 15`" n January 21st(Monday 20th MLK) September 16th 17th November 18th March 1n May 19 June 16th The June 16, 2014 meeting will be at 1:45 P.M. in the City Council's Conference Room on the fourth floor of the Noel C. Taylor Municipal Building, 215 Church Ave., SW, Roanoke, Virginia 24011. All other meetings will be at 1:00 P.M. in the Emergency Operations Center(EOC) conference room on the first floor of the Noel C. Taylor Municipal Building. Respe ul ar a mer General Manager Cc: Vice President of Operations Assistant Vice President of Operations Treasurer Secretary General Counsel Municipal Auditor Greater Roanoke Transit Company PO Box 13247 • Roanoke, Virginia 24032 • Phone: 540.982.0305 • Fax:540.982.2703 • www.valleymetro.com • GREATER ROANOKE TRANSIT COMPANY BOARD OF DIRECTORS July 11, 2013 David A. Bowers, President, and Members of the Greater Roanoke Transit Company Board of Directors Dear President Bowers and Members of the Board: The regular meeting of the Greater Roanoke Transit Company Board of Directors will be held on Monday, July 15, 2013, at 1:00 p.m., in the EOC Conference Room, Room 159, first floor, Noel C. Taylor Municipal Building, 215 Church Avenue, S. W. Sincerely, Stephanie M. Moon Secretary pc: Christopher P. Morrill, Vice President of Operations, GRTC Daniel J. Callaghan, General Counsel, GRTC Ann H. Shawver, Treasurer, GRTC Drew Harmon, Municipal Auditor Sherman M. Stovall, Assistant Vice President of Operations, GRTC Gary E. Tegenkamp, Assistant General Counsel, GRTC Carl L. Palmer, General Manager, Valley Metro, P. O. Box 13247, Roanoke, Virginia 24032 K:\GRTC.13\July 15,2013 Meeting Notice.doc GREATER ROANOKE TRANSIT COMPANY BOARD OF DIRECTORS July 15, 2013 1 :00 P.M. EOC CONFERENCE ROOM ROOM 159 AGENDA 1. Call to Order-- Roll Call. 2. Approval of Minutes: Regular meeting of GRTC held on Monday, June 17, 2013. Without object, dispensed with the reading of minutes and approved as recorded. 3. Reports of Officers: a. General Manager: 1. Management Update for July 15, 2013. Without objection, Management Update was received and filed b. Secretary: 1. Election of Officers. Nomination by position: President - Mayor of the City of Roanoke — David A. Bowers Vice-President - Vice-Mayor of the City of Roanoke - Court G. Rosen Vice-President of Operations — City Manager— Christopher P. Morrill Assistant Vice-President of Operations — Assistant City Manager for Operations — Sherman M. Stovall Secretary — City Clerk — Stephanie M. Moon Assistant Secretary — Deputy City Clerk — Jonathan E. Craft Treasurer— Director of Finance — Ann H. Shawver General Counsel and Registered Agent — City Attorney — Daniel J. Callaghan 4. Other Business. None. 5. Adjourn. 1:17 p.m. L:\CLERK\DATA\CKSM1\GRTC.13\July 15,2013 Action Agenda.doc GREATER ROANOKE TRANSIT COMPANY BOARD OF DIRECTORS July 15, 2013 David A. Bowers, President, and Members of the Greater Roanoke Transit Company Board of Directors Dear President Bowers and Members of the Board: Please be advised that Director Michalski-Karney will not be present at the regular meeting of the Greater Roanoke Transit Company Board of Directors held on Monday, July 15 at 1:00 p.m., in the EOC Conference Room, Room 159, first floor, Noel C. Taylor Municipal Building, 215 Church Avenue, S. W. Sincerely, Jonathan E. raft Assistant Secretary pc: Christopher P. Morrill, Vice President of Operations, GRTC Daniel J. Callaghan, General Counsel, GRTC Ann H. Shawver, Treasurer, GRTC Drew Harmon, Municipal Auditor Sherman M. Stovall, Assistant Vice President of Operations, GRTC Gary E. Tegenkamp, Assistant General Counsel, GRTC Carl L. Palmer, General Manager, Valley Metro, P. O. Box 13247, Roanoke, Virginia 24032 K:\GRTC\GRTC 13\Karney out July 15,2013 Meeting Notice.doc Walley a Greater Roanoke Transit Company Management Update July 15, 2013 Bus Shelter Projects Staff met with Louise Dudley, Valley View Mall manager, to review the Wal-Mart shelter design plans. She agreed to support GRTC's conceptual plans and to forward them to CBL &Associates, the Mall owner, for their review and approval. In partnership with the Hurt Park Neighborhood Alliance, the Roanoke Arts Commission, and the City of Roanoke, GRTC is planning to install a bus stop shelter whose design will reflect the community's rich heritage. The installation of an historic bus stop shelter in the Hurt Park Neighborhood will provide a work of art displaying the unique character of the neighborhood, while functioning as a transit bus stop shelter for Valley Metro passengers. The bus stop shelter will be located on Salem Avenue, at 13`h Street SW. An artist for the design, fabrication, and installation of the Hurt Park Neighborhood bus stop shelter has been selected. The contract for the artist is currently under legal review and is expected to be executed by July 318'. GRTC will contribute $12,000 toward the completion of the project. Amtrak Connector Reservation System The Amtrak Agreement has been fully executed. It is anticipated that the Connector's reservation system on Amtrak's national web site will go live on August 5, 2013. In response to requests received from passengers, from time to time, GRTC will begin operating the Connector service on holidays. Due to the collective bargaining agreement, holiday service was not provided. The local bargaining unit has agreed to operate the Connector service on holidays, beginning with Labor Day. To provide service on six (6 holidays, GRTC's annual budget for the Connector service will increase by $5,700. GRTC Fiscal 2014 Budget Update On June 21, 2013, the Department of Rail and Public Transportation (DRPT) advised GRTC of the actual operating assistance it will receive from federal and state sources for fiscal 2014. GRTC will receive $102,430 less than it applied for in February 2013. The primary factor contributing to this loss is that the state approved an amount that's $207,700 less than what was approved for GRTC's fiscal 2013 budget. To mitigate this loss, DRPT has agreed to pursue the possibility of applying a portion of the new operating assistance funds available under the Governor's Transportation Bill to GRTC's fiscal 2014 budget. Marketing Plans In cooperation with the Roanoke Valley-Alleghany Regional Commission's Ride Solutions Program and First Transit, GRTC is in the process of formulating low cost marketing strategies to increase GRTC's Valley Metro fixed route, Trolley, Smart Way, and Connector ridership by focusing on uncommitted ad space on Valley Metro buses, internal electronic ad messages on the Star Line Trolleys and Smart Way coaches, and other low cost means. Greater Roanoke Transit Company PO Box 13247 • Roanoke, Virginia 24032 • Phone: 540.982.0305 • Fax:540.982.2703 • www.valleymetro.com • • Fiscaf 2013 Year-to-Date Ridership Overall ridership is up approximately 1%for May year to date of Fiscal Year 2013 compared to the same period in Fiscal Year 2012. Comparative ridership information (percentage change) for each individual service is outlined below: • Fixed Route: +1% • Smart Way: (8%) • Smart Way Connector: +21% • Star Line Trolley: (6%) • STAR: +5% Resyeotfuli • g .ed, 'Car L.45-Imer General Manager Copy: Vice President of Operations Assistant Vice President of Operations Treasurer Secretary Acting GRTC General Counsel Municipal Auditor GREATER ROANOKE TRANSIT COMPANY BOARD OF DIRECTORS July 15, 2013 President David A. Bowers and Members of the GRTC Board of Directors Roanoke, Virginia Dear President Bowers and Members of the Board: Article V, Officers, of the By-Laws of the Greater Roanoke Transit Company provides that the Board of Directors, promptly after their election each year, shall elect a President, one or more Vice-Presidents, a Secretary, a Treasurer and such other officers as the Board deems appropriate to serve for a term of one year each, commencing upon the date of their election or until their respective successors are elected and have duly qualified. Officers currently serving are: David A. Bowers, President Court G. Rosen, Vice-President Christopher P. Morrill, Vice-President of Operations Sherman M. Stovall, Assistant Vice-President of Operations Stephanie M. Moon, Secretary Jonathan E. Craft, Assistant Secretary Ann H. Shawver, Treasurer Daniel J. Callaghan, Registered Agent and General Counsel Sincerely, 94m 0i7`ti) Stephanie M. Moon Secretary pc: Gary E. Tegenkamp, Assistant General Counsel, GRTC Carl L. Palmer, General Manager, Valley Metro, P. O. Box 13247, Roanoke, Virginia 24032 Drew Harmon, Municipal Auditor K:\GRTC.13\Election of Offcers.doc GREATER ROANOKE TRANSIT COMPANY BOARD OF DIRECTORS July 16, 2013 The Honorable David A. Bowers Mayor Roanoke, Virginia Dear Mayor Bowers: At a regular meeting of the Greater Roanoke Transit Company held on Monday, July 15, 2013, you were reappointed as President of the Greater Roanoke Transit Company Board of Directors for a one year term ending June 30, 2014. Enclosed you will find a Certificate of your reappointment. Pursuant to Section 2.2-3702, Code of Virginia (1950), as amended, I am enclosing copy of the Virginia Freedom of Information Act. The Act requires that you be provided with a copy within two weeks of your reappointment and each member is required "to read and become familiar with provisions of the Act." Sincerely, itzfked:a_XY). Stephanie M. Moon, MM Secretary Enclosures pc: Carl L. Palmer, General Manager, Valley Metro, P.O. Box 13247, Roanoke, Virginia 24032 Gary Tegenkamp, Assistant General Counsel //cksml/GRTC.13/July 15 correspondence/officer appointments.doc COMMONWEALTH OF VIRGINIA To-wit: CITY OF ROANOKE I, Stephanie M. Moon, Secretary, and as such Secretary of the Greater Roanoke Transit Company and keeper of the records thereof, do hereby certify that at the regular meeting of the Greater Roanoke Transit Company which was held on the fifteenth day of July 2013, DAVID A. BOWERS was reappointed as President of the Greater Roanoke Transit Company Board of Directors for a one-year term of office ending June 30, 2014. Given under my hand and the Seal of the Greater Roanoke Transit Company this sixteenth day of July 2013. Yktt-Ptieult) Secretary //cksml/GRTC.13/July 15 correspondence/officer appointments.doc t GREATER ROANOKE TRANSIT COMPANY BOARD OF DIRECTORS July 16, 2013 The Honorable Court G. Rosen Vice-Mayor Roanoke, Virginia Dear Vice-Mayor Rosen: At a regular meeting of the Greater Roanoke Transit Company held on Monday, July 15, 2013, you were reappointed as Vice-President of the Greater Roanoke Transit Company Board of Directors for a one year term ending June 30, 2014. Enclosed you will find a Certificate of your appointment. Pursuant to Section 2.2-3702, Code of Virginia (1950), as amended, I am enclosing copy of the Virginia Freedom of Information Act. The Act requires that you be provided with a copy within two weeks of your appointment and each member is required "to read and become familiar with provisions of the Act." Sincerely, 4Pediatsi) \Icr) ,Th0013 Stephanie M. Moon, MMC Secretary Enclosures pc: Carl L. Palmer, General Manager, Valley Metro, P.O. Box 13247, Roanoke, Virginia 24032 Gary Tegenkamp, Assistant General Agent //cksml/GRTC.13/July 15 correspondence/officer appointments.doc COMMONWEALTH OF VIRGINIA To-wit: CITY OF ROANOKE I, Stephanie M. Moon, Secretary, and as such Secretary of the Greater Roanoke Transit Company and keeper of the records thereof, do hereby certify that at the regular meeting of the Greater Roanoke Transit Company which was held on the fifteenth day of July 2013, COURT G. ROSEN was appointed as Vice-President of the Greater Roanoke Transit Company Board of Directors for a one-year term of office ending June 30, 2014. Given under my hand and the Seal of the Greater Roanoke Transit Company this sixteenth day of July 2013. Secretary //cksml/GRTC.13/July 15 correspondence/officer appointments.doc hcci GREATER ROANOKE TRANSIT COMPANY BOARD OF DIRECTORS July 16, 2013 Christopher P. Morrill City Manager Roanoke, Virginia Dear Mr. Morrill: At a regular meeting of the Greater Roanoke Transit Company held on Monday, July 15, 2013, you were reappointed as Vice-President of Operations of the Greater Roanoke Transit Company Board of Directors for a one year term ending June 30, 2014. Enclosed you will find a Certificate of your reappointment and an Oath or Affirmation of Office which must be administered by a Clerk of the Circuit Court of the City of Roanoke, located on the third floor of the Roanoke City Courts Facility, 315 Church Avenue, S. W. Please return one copy of the Oath of Office to Room 456 in the Noel C. Taylor Municipal Building, 215 Church Avenue, S. W., prior to serving in the capacity to which you were reappointed. Pursuant to Section 2.2-3702, Code of Virginia (1950), as amended, I am enclosing copy of the Virginia Freedom of Information Act. The Act requires that you be provided with a copy within two weeks of your reappointment and each member is required "to read and become familiar with provisions of the Act." Sincerely, Wa,A2st-) leYtt?t.) Stephanie M. Moon, MMC Secretary Enclosures pc: Carl L. Palmer, General Manager, Valley Metro, P.O. Box 13247, Roanoke, Virginia 24032 Gary Tegenkamp, Assistant General Agent //cksml/GRTC.13/July 15 correspondence/officer appointments doe • COMMONWEALTH OF VIRGINIA To-wit: CITY OF ROANOKE I, Stephanie M. Moon, Secretary, and as such Secretary of the Greater Roanoke Transit Company and keeper of the records thereof, do hereby certify that at the regular meeting of the Greater Roanoke Transit Company which was held on the fifteenth day of July 2013, CHRISTOPHER P. MORRILL was reappointed as Vice-President of Operations of the Greater Roanoke Transit Company Board of Directors for a one-year term of office ending June 30, 2014. Given under my hand and the Seal of the Greater Roanoke Transit Company this sixteenth day of July 2013. ikelACLAjb. M. initeJ Secretary //cksml/GRTC.13/July 15 correspondence/officer appointments doe GREATER ROANOKE TRANSIT COMPANY BOARD OF DIRECTORS July 16, 2013 Sherman M. Stovall Assistant City Manager for Operations Roanoke, Virginia Dear Mr. Stovall: At a regular meeting of the Greater Roanoke Transit Company held on Monday, July 15, 2013, you were reappointed as Assistant Vice-President of Operations of the Greater Roanoke Transit Company Board of Directors for a one year term ending June 30, 2014. Enclosed you will find a Certificate of your reappointment and an Oath or Affirmation of Office which must be administered by a Clerk of the Circuit Court of the City of Roanoke, located on the third floor of the Roanoke City Courts Facility, 315 Church Avenue, S. W. Please return one copy of the Oath of Office to Room 456 in the Noel C. Taylor Municipal Building, 215 Church Avenue, S. W., prior to serving in the capacity to which you were reappointed. Pursuant to Section 2.2-3702, Code of Virginia (1950), as amended, I am enclosing copy of the Virginia Freedom of Information Act. The Act requires that you be provided with a copy within two weeks of your reappointment and each member is required "to read and become familiar with provisions of the Act." Sincerely, Stephanie M. Moon, MMr Secretary Enclosures pc: Carl L. Palmer, General Manager, Valley Metro, P.O. Box 13247, Roanoke, Virginia 24032 Gary Tegenkamp, Assistant General Agent //cksml/GRTC.13/July 15 correspondence/officer appointments.doc • COMMONWEALTH OF VIRGINIA To-wit: CITY OF ROANOKE I, Stephanie M. Moon, Secretary, and as such Secretary of the Greater Roanoke Transit Company and keeper of the records thereof, do hereby certify that at the regular meeting of the Greater Roanoke Transit Company which was held on the fifteenth day of July 2013, SHERMAN M. STOVALL was reappointed as Assistant Vice-President of Operations of the Greater Roanoke Transit Company Board of Directors for a one-year term of office ending June 30, 2014. Given under my hand and the Seal of the Greater Roanoke Transit Company this sixteenth day of July 2013. 214 Secretary //cksml/GRTC.13/July 15 correspondence/officer appointments.doc Oath or Affirmation of Office Commonwealth of Virginia, City of Roanoke, to-wit: I, Sherman M. Stovall, do solemnly swear or (affirm) that I will support the Constitution of the United States of America and the Constitution of the Commonwealth of Virginia, and that I will faithfully and impartially discharge and perform all the duties incumbent upon me as Assistant Vice-President of Operations of the Greater Roanoke Transit Company Board of Directors for a one-year term of office ending June 30, 2014, according to the best of my ability. So help me God. X1/7 in41J f l/, TWA SHERMAN M. STOVALL The foregoing oath of office was taken, sworn to, and subscribed before me by Sherman M. Stovall this/3/ day of O(,i'UhI 013. Brenda S. Hamilton, Clerk of the Circuit Court 4-/ By cY>14lt addle t i 4 , Clerk 4 //cksml/GRTC.13/July 15 correspondence/officer appointments.doc GREATER ROANOKE TRANSIT COMPANY BOARD OF DIRECTORS July 16, 2013 Stephanie M. Moon City Clerk Roanoke, Virginia Dear Ms. Moon: At a regular meeting of the Greater Roanoke Transit Company held on Monday, July 15, 2013, you were reappointed as Secretary of the Greater Roanoke Transit Company Board of Directors for a one year term ending June 30, 2014. Enclosed you will find a Certificate of your reappointment and an Oath or Affirmation of Office which must be administered by a Clerk of the Circuit Court of the City of Roanoke, located on the third floor of the Roanoke City Courts Facility, 315 Church Avenue, S. W. Please return one copy of the Oath of Office to Room 456 in the Noel C. Taylor Municipal Building, 215 Church Avenue, S. W., prior to serving in the capacity to which you were reappointed. Pursuant to Section 2.2-3702, Code of Virginia (1950), as amended, I am enclosing copy of the Virginia Freedom of Information Act. The Act requires that you be provided with a copy within two weeks of your reappointment and each member is required "to read and become familiar with provisions of the Act." Sincerely, onathan E. raft Assistant Secretary Enclosures pc: Carl L. Palmer, General Manager, Valley Metro, P.O. Box 13247, Roanoke, Virginia 24032 Gary Tegenkamp, Assistant General Agent //cksml/GRTC.13/July 15 correspondence/officer appointments.doc COMMONWEALTH OF VIRGINIA To-wit: CITY OF ROANOKE I, Jonathan E. Craft, Assistant Secretary, and as such Assistant Secretary of the Greater Roanoke Transit Company and keeper of the records thereof, do hereby certify that at the regular meeting of the Greater Roanoke Transit Company which was held on the fifteenth day of July 2013, STEPHANIE NI. MOON was reappointed as Secretary of the Greater Roanoke Transit Company Board of Directors for a one-year term of office ending June 30, 2014. Given under my hand and the Seal of the Greater Roanoke Transit Company this sixteenth day of July 2013. Assistant Secretary //eksml/GRTC.I3/July 15 correspondence/officer appointments.doc Oath or Affirmation of Office Commonwealth of Virginia, City of Roanoke, to-wit: I, Stephanie M. Moon, do solemnly swear or (affirm) that I will support the Constitution of the United States of America and the Constitution of the Commonwealth of Virginia, and that I will faithfully and impartially discharge and perform all the duties incumbent upon me as Secretary of the Greater Roanoke Transit Company Board of Directors for a one-year term of office ending June 30, 2014, according to the best of my ability. So help me God. �m . .STEP6HANIE M. MOON The foregoing oath of office was taken, sworn to, and subscribed before me by Stephanie M. Moon this 16 day of Ile 2013. Brenda S. Hamilton, Clerk of the Circuit Court B ,;nas. • " #4 R-7.. . Clerk //cksml/GRTC.13/July 15 correspondence/officer appointments.doc f , GREATER ROANOKE TRANSIT COMPANY BOARD OF DIRECTORS July 16, 2013 Jonathan E. Craft Deputy City Clerk Roanoke, Virginia Dear Mr. Craft: At a regular meeting of the Greater Roanoke Transit Company held on Monday, July 15, 2013, you were reappointed as Assistant Secretary of the Greater Roanoke Transit Company Board of Directors for a one year term ending June 30, 2014. Enclosed you will find a Certificate of your reappointment and an Oath or Affirmation of Office which must be administered by a Clerk of the Circuit Court of the City of Roanoke, located on the third floor of the Roanoke City Courts Facility, 315 Church Avenue, S. W. Please return one copy of the Oath of Office to Room 456 in the Noel C. Taylor Municipal Building, 215 Church Avenue, S. W., prior to serving in the capacity to which you were reappointed. Pursuant to Section 2.2-3702, Code of Virginia (1950), as amended, I am enclosing copy of the Virginia Freedom of Information Act. The Act requires that you be provided with a copy within two weeks of your reappointment and each member is required "to read and become familiar with provisions of the Act." Sincerely, Stephanie M. Moon, MMC Secretary Enclosures pc: Carl L. Palmer, General Manager, Valley Metro, P.O. Box 13247, Roanoke, Virginia 24032 Gary Tegenkamp, Assistant General Agent //cksm l/CRTC.13/July 15 correspondence/officer appointments.doc COMMONWEALTH OF VIRGINIA To-wit: CITY OF ROANOKE I, Stephanie M. Moon, Secretary, and as such Secretary of the Greater Roanoke Transit Company and keeper of the records thereof, do hereby certify that at the regular meeting of the Greater Roanoke Transit Company which was held on the fifteenth day of July 2013, JONATHAN E. CRAFT was reappointed as Assistant Secretary of the Greater Roanoke Transit Company Board of Directors for a one-year term of office ending June 30, 2014. Given under my hand and the Seal of the Greater Roanoke Transit Company this sixteenth day of July 2013. AttattA:e.jmn Secretary v //cksml/GRTC.13/July 15 correspondence/officer appointments.doc Oath or Affirmation of Office Commonwealth of Virginia, City of Roanoke, to-wit: I, Jonathan E. Craft, do solemnly swear or (affirm) that I will support the Constitution of the United States of America and the Constitution of the Commonwealth of Virginia, and that I will faithfully and impartially discharge and perform all the duties incumbent upon me as Assistant Secretary of the Greater Roanoke Transit Company Board of Directors for a one-year term of office ending June 30, 2014, according to the best of my ability. So help me God. „SJONATHAN E. C FT The foregoing oath of office was taken, sworn to, and subscribed before me by Jonathan E. Craft this j g day of Illy 2013. Brenda S. Hamilton, Clerk of the Circuit Court By Drag, 1 7,42fi tCCE�/ , Clerk //cksml/GRTC.13/July I5 correspondence/officer appointments doe GREATER ROANOKE TRANSIT COMPANY BOARD OF DIRECTORS July 16, 2013 Ann H. Shawver Director of Finance Roanoke, Virginia Dear Ms. Shawver: At a regular meeting of the Greater Roanoke Transit Company held on Monday, July 15, 2013, you were reappointed as Treasurer of the Greater Roanoke Transit Company Board of Directors for a one year term ending June 30, 2014. Enclosed you will find a Certificate of your reappointment and an Oath or Affirmation of Office which must be administered by a Clerk of the Circuit Court of the City of Roanoke, located on the third floor of the Roanoke City Courts Facility, 315 Church Avenue, S. W. Please return one copy of the Oath of Office to Room 456 in the Noel C. Taylor Municipal Building, 215 Church Avenue, S. W., prior to serving in the capacity to which you were reappointed. Pursuant to Section 2.2-3702, Code of Virginia (1950), as amended, I am enclosing copy of the Virginia Freedom of Information Act. The Act requires that you be provided with a copy within two weeks of your reappointment and each member is required "to read and become familiar with provisions of the Act." Sincerely, Alti-QaLU Or) - Stephanie M. Moon, MMC U Secretary Enclosures pc: Carl L. Palmer, General Manager, Valley Metro, P.O. Box 13247, Roanoke, Virginia 24032 Gary Tegenkamp, Assistant General Agent //cksml/GRTC.13/July 15 correspondence/officer appointments.doc COMMONWEALTH OF VIRGINIA To-wit: CITY OF ROANOKE I, Stephanie M. Moon, Secretary, and as such Secretary of the Greater Roanoke Transit Company and keeper of the records thereof, do hereby certify that at the regular meeting of the Greater Roanoke Transit Company which was held on the fifteenth day of July 2013, ANN H. SHAWVER was reappointed as Treasurer of the Greater Roanoke Transit Company Board of Directors for a one-year term of office ending June 30, 2014. Given under my hand and the Seal of the Greater Roanoke Transit Company this sixteenth day of July 2013. Secretary //cksml/GRTC.13/July 15 correspondence/officer appointments.doc Oath or Affirmation of Office Commonwealth of Virginia, City of Roanoke, to-wit: I, Ann H. Shawver, do solemnly swear or (affirm) that I will support the Constitution of the United States of America and the Constitution of the Commonwealth of Virginia, and that I will faithfully and impartially discharge and perform all the duties incumbent upon me as Treasurer of the Greater Roanoke Transit Company Board of Directors for a one-year term of office ending June 30, 2014, according to the best of my ability. So help me God. A The foregoing oath of office was taken, sworn to, and subscribed before me by Ann H. Shawver this c .-`t day of S y 2013. I Brenda S. Hamilton, Clerk of the Circuit Court B //cksml/GRTC.13/July 15 correspondence/officer appointments.doc • GREATER ROANOKE TRANSIT COMPANY BOARD OF DIRECTORS July 16, 2013 Daniel J. Callaghan City Attorney Roanoke, Virginia Dear Mr. Callaghan: At a regular meeting of the Greater Roanoke Transit Company held on Monday, July 15, 2013, you were reappointed as General Counsel of the Greater Roanoke Transit Company Board of Directors for a one year term ending June 30, 2014. Enclosed you will find a Certificate of your reappointment and an Oath or Affirmation of Office which must be administered by a Clerk of the Circuit Court of the City of Roanoke, located on the third floor of the Roanoke City Courts Facility, 315 Church Avenue, S. W. Please return one copy of the Oath of Office to Room 456 in the Noel C. Taylor Municipal Building, 215 Church Avenue, S. W., prior to serving in the capacity to which you were reappointed. Pursuant to Section 2.2-3702, Code of Virginia (1950), as amended, I am enclosing copy of the Virginia Freedom of Information Act. The Act requires that you be provided with a copy within two weeks of your reappointment and each member is required "to read and become familiar with provisions of the Act." Sincerely, \ Stephanie M. Moon, MMC Secretary Enclosures pc: Carl L. Palmer, General Manager, Valley Metro, P.O. Box 13247, Roanoke, Virginia 24032 Gary Tegenkamp, Assistant General Agent //cksml/GRTC.13/July 15 correspondence/officer appointments.doc 1 COMMONWEALTH OF VIRGINIA To-wit: CITY OF ROANOKE I, Stephanie M. Moon, Secretary, and as such Secretary of the Greater Roanoke Transit Company and keeper of the records thereof, do hereby certify that at the regular meeting of the Greater Roanoke Transit Company which was held on the fifteenth day of July 2013, DANIEL J. CALLAGHAN was reappointed as General Counsel of the Greater Roanoke Transit Company Board of Directors for a one-year term of office ending June 30, 2014. Given under my hand and the Seal of the Greater Roanoke Transit Company this sixteenth day of July 2013. ittk jOYJ Secretary //cksml/GRTC.130uly 15 correspondence/officer appointments.doc • Oath or Affirmation of Office Commonwealth of Virginia, City of Roanoke, to-wit: I, Daniel J. Callaghan do solemnly swear or (affirm) that I will support the Constitution of the United States of America and the Constitution of the Commonwealth of Virginia, and that I will faithfully and impartially discharge and perform all the duties incumbent upon me as General Counsel of the Greater Roanoke Transit Company Board of Directors for a one-year term of office ending June 30, 2014, according to the best of my ability. So help me God. Cv/w� 1e ill ac--� DANIFS/J. CALL HAN The foregoing oath of office wa aken, sworn to, and subscribed before me by Daniel J. Callaghan this day of I 2013. Brenda S. Hamilton, Clerk of the Circuit Court By L% Q7 '6 r7-7-5-17 , Clerk //cksml/GRTC.13/July 15 correspondence/officer appointments.doc .440s CM CLERK'171 JUI 476FI9052 Greater Roanoke Transit Company Board of Directors Meeting Roanoke,Virginia July 3, 2013 David A. Bowers, President and Members of the Board of Directors Dear President Bowers and Members of the Board: Subject: Greater Roanoke Transit Company April 2013 Financial Report The attached report provides year-to-date financial performance information for the nine months ending April 2013. Year-to-date net income totals $535,694, an improvement of $301,327 compared to the same period in FY 2012. The significant factors affecting financial performance are outlined below. Revenue Total revenue on a year-to-date basis increased 4.8% over FY 2012 and is 3.2% above the established budget. Revenue performance continues to be influenced by fare revenue which is performing at a level that meets the anticipated budget and operating assistance which is performing at a level that exceeds budget by 4.5% due to the level of funding received via state and federal grants Expenses Total expenses on a year-to-date basis increased approximately 1% over FY 2012, but are approximately 3% below the established budget. While materials and supplies exceed the established budget by approximately 3%, labor, fringe benefit, utility, insurance, and miscellaneous expenses continue to be below budget. It is not anticipated that the required local operating assistance will exceed budget. If revenue and expenditure performance for the remaining months of the fiscal year does not perform within the established budget, any net loss would be covered from available uncommitted working capital, which totaled $1.6 million at the end of April. Greater Roanoke Transit Company P.O. Box 13247 • Roanoke,Virginia 24032 • Phone: 540.982.0305 • Fax: 540.982.2703 • www.valleymetro.com David A. Bowers, President and Members of the Board of Directors GRTC Financials v. July 3, 2013 Page 2 Respectfully Sb ' ed, ui Carl L. Palmer General Manager Cc: Vice President of Operations Assistant Vice President of Operations Treasurer Secretary GRTC General Counsel Municipal Auditor GREATER ROANOKE TRANSIT COMPANY • SOUTHWESTERN VIRGINIA TRANSIT MANAGEMENT COMPANY Operating Revenue and Expense Statement For the Ten Months Ending April 30, 2013 FY FY FY 13 April April BUDGET %OF FY 13 2013 2012 TOTAL BUDGET OPERATING INCOME Operating Revenue $1,797,375.53 $1,774,481.39 $2,157,445.00 83.31% Advertising Revenue 109,085.69 121,824.38 126,180.00 86.45% Non-Transportation Revenues 106,976.60 164,826.39 189,390.00 56.48% Total Income $2,013,437.82 $2,061,132.16 $2,473,015.00 81.42% OPERATING EXPENSES Labor-Hourly&Salary $2,639,694.31 $2,546,639.24 $3,232,360.00 81.66% Fringe Benefits 1,325,048.34 1,398,083.93 1,795,402.00 73.80% Services 420,528.43 418,726.19 530,453.00 79.28% Materials&Supplies 1,566,706.00 1,599,922.13 1,809,881.00 86.56% Utilities 225,315.18 186,052.48 276,670.00 81.44% Insurance Costs 292,262.42 288,528.89 419,324.00 69.70% Miscellaneous Expenses 802,875.28 777,553.33 1,010,651.00 79.44% Total Expenses $7,272,429.96 $7,215,506.19 $9,074,741.00 80.14% Net Loss ($5,258,992.14) ($5,154,374.03) ($6,601,726.00) 79.66% Local Grants $1,714,659.15 $1,670,067.60 $2,023,636.00 84.73% State Grants 1,427,959.00 1,164,747.00 1,746,659.00 81.75% Federal Grants 2,652,065.00 2,553,926.00 2,831,431.00 93.67% Total Subsidies $5,794,683.15 $5,388,740.60 $6,601,726.00 87.78% Net Income(loss) $535,691.01 $234,366.57 GREATER ROANOKE TRANSIT COMPANY SUMMARY OF STATEMENT OF NET ASSETS 4/30/2013 4/30/2012 Year-to-Date Year-to-Date %of Change ASSETS CASH $ 1,001,481.38 $ 912,519.70 10% ACCOUNTS RECEIVABLE $ 1,039,201.69 $ 929,932.53 12% INVENTORY $ 473,474.26 $ 449,495.20 5% FIXED ASSETS FIXED ASSETS $ 29,867,516.08 $ 29,803,135.33 0% ACCUMULATED DEPRECIATION $ (18,478,334.04) $ (17,016,605.50) 9% NET FIXED ASSETS $ 11,389,182.04 $ 12,786,529.83 -11% PREPAYMENTS $ 124,024.48 $ 99,873.47 24% TOTAL ASSETS $ 14,027,363.85 $ 15,178,350.73 -8% CURRENT LIABILITIES ACCOUNTS PAYABLE $ 235,177.91 $ 278,887.56 -16% PAYROLL LIABILITIES $ 264,174.77 $ 208,806.94 27% OTHER LIABILITIES $ 756,422.78 $ 660,656.27 14% CAPITAL CAPITAL STOCK $ 5.00 $ 5.00 0% GRANTS $ 4,921,840.10 $ 5,138,494.60 -4% DEPRECIATION EXPENSE $ (1,563,385.96) $ (1,612,445.70) -3% RETAINED EARNINGS $ 8,505,517.24 $ 9,935,164.49 -14% CAPITAL CONTRIBUTIONS $ 371,921.00 $ 334,415.00 11% NET INCOME (LOSS) $ 535,691.01 $ 234,366.57 129% TOTAL CAPITAL $ 12,771,588.39 $ 14,029,999.96 -9% TOTAL LIABILITIES&CAPITAL $ 14,027,363.85 $ 15,178,350.73 -8% • GREATER ROANOKE TRANSIT COMPANY BOARD OF DIRECTORS September 12, 2013 David A. Bowers, President, and Members of the Greater Roanoke Transit Company Board of Directors Dear President Bowers and Members of the Board: The regular meeting of the Greater Roanoke Transit Company Board of Directors will be held on Monday, September 16, 2013, at 1:00 p.m., in the EOC Conference Room, Room 159, first floor, Noel C. Taylor Municipal Building, 215 Church Avenue, S. W. Sincerely, `^ 44144,4.12 Stephanie M. Moon Secretary pc: Christopher P. Morrill, Vice President of Operations, GRTC Daniel J. Callaghan, General Counsel, GRTC Ann H. Shawver, Treasurer, GRTC Drew Harmon, Municipal Auditor Sherman M. Stovall, Assistant Vice President of Operations, GRTC Gary E. Tegenkamp, Assistant General Counsel, GRTC Carl L. Palmer, General Manager, Valley Metro, P. O. Box 13247, Roanoke, Virginia 24032 K:\GRTC.12\September 17,2012 Meeting Notice.doc GREATER ROANOKE TRANSIT COMPANY BOARD OF DIRECTORS September 16, 2013 1:00 P.M. EOC CONFERENCE ROOM ROOM 159 AGENDA 1. Call to Order -- Roll Call. Director Karen Michalski-Karney was absent. 2. Approval of Minutes: Regular meeting of GRTC held on Monday, July 15, 2013. Without objection, dispensed with the reading and adopted as recorded. 3. Reports of Officers: a. General Manager: 1. Management Update • Bus Shelter Projects • Amtrak Connector Reservation System • Trolley Service • Planning and Special Projects • Fiscal 2014 Year to Date Ridership Without objection, received and filed. 2. FY 2013 Unaudited Financial Report Without objection, received and filed. 4. Other Business. Jimmy O'Connor, a frequent Valley Metro bus patron, appeared before the Board and stated that he had experienced a procedural problem with a bus transfer, however, the problem has been resolved. 5. Adjourn. 1:24 p.m. K:\GRTC.13\September 16,2013 Mayor's Agenda.doc GREATER ROANOKE TRANSIT COMPANY BOARD OF DIRECTORS September 12, 2013 David A. Bowers, President, and Members of the Greater Roanoke Transit Company Board of Directors Dear President Bowers and Members of the Board: Please be advised that Director Michalski-Karney will not be present at the regular meeting of the Greater Roanoke Transit Company Board of Directors held on Monday, September 16 at 1:00 p.m., in the EOC Conference Room, Room 159, first floor, Noel C. Taylor Municipal Building, 215 Church Avenue, S. W. Sincerely AOP • Anathan E. Cra Assistant Secretary pc: Christopher P. Morrill, Vice President of Operations, GRTC Daniel J. Callaghan, General Counsel, GRTC Ann H. Shawver, Treasurer, GRTC Drew Harmon, Municipal Auditor. Sherman M. Stovall, Assistant Vice President of Operations, GRTC Gary E. Tegenkamp, Assistant General Counsel, GRTC Carl L. Palmer, General Manager, Valley Metro, P. O. Box 13247, Roanoke, Virginia 24032 K:\GRTC\GRTC 13\Karney out September 16,2013 Meeting Notice.doc J c • • Valley Greater Roanoke Transit Company Management Update September 16, 2013 Bus Shelter Projects The review and approval process for the Wal-Mart/GRTC contract for the construction and installation of the Wal-Mart shelter has taken longer than anticipated. Discussions with Wal-Mart are on-going. Consequently, this has delayed the release of the Architect and Engineering (A&E) services solicitation for the design of the shelter. The solicitation is planned for release by September 30, 2013, with an award planned for the last week in October. A schedule for the design, construction, and installation of the Wal-Mart shelter will be established when an A&E firm is selected and a contract is executed. The selected A&E firm's schedule will include the development of construction specifications which will be used in a solicitation to select a company that will build and install the shelter according to the A&E firm's specifications. The artist for the design, fabrication, and installation of the Hurt Park Neighborhood bus stop shelter has been selected. The contract for the artist has been executed and the design work has begun. GRTC will contribute $12,000 toward the completion of the project. Amtrak Connector Reservation System The Amtrak Agreement has been fully executed. The Connector's reservation system on Amtrak's national web site went live on August 5, 2013. As of September 6, 2013, an average of four(4) reservations is placed on a daily basis. Trolley Service GRTC and city staff met with Carilion representatives, Curtis Mills (GRTC Board Member) and Marie Webb to discuss service enhancement modifications to the Trolley's routing and designated stop locations. Mr. Mills and Ms. Webb's suggestions for modifications were incorporated into GRTC staff's recommendations. The recommendations for modifications are scheduled to go into effect on Monday September 30, 2013. Planning and Special Projects GRTC is currently working with the Planning Commission's Metropolitan Planning Organization on two projects: 1) A Transportation Alternative federal grant application for upgrading select bus stops identified in GRTC's Efficiency Study; the upgrades will focus on enhancing passenger access to bus stops, including the installation of curb cuts, and bus stop shelters; 2) The Regional Pedestrian and Transit Vision Plans that will focus on regionally significant pedestrian and transit accommodations to meet evolving needs for public transit. Greater Roanoke Transit Company P.O. Box 13247 • Roanoke,Virginia 24032 • Phone: 540.982.0305 • Fax: 540.982.2703 • www.valleymetro.com " tcal 2014 Year-to-Date Ridership Overall ridership is up approximately 4.6%for July year to date of Fiscal Year 2014 compared to the same period in Fiscal Year 2013. The comparative ridership percentage change for each GRTC service is outlined below: • Fixed Route: +1.8% • Smart Way: +9.8% • Smart Way Connector: +21.8% • Star Line Trolley: +55% • STAR: +14.9% Resp tfu , ted, Carl L. a mer General Manager Copy: Vice President of Operations Assistant Vice President of Operations Treasurer Secretary GRTC General Counsel Municipal Auditor 3. q . 0? . • Greater Roanoke Transit Company Board of Directors Meeting Roanoke, Virginia September 16, 2013 David A. Bowers, President and Members of the Board of Directors Dear President Bowers and Members of the Board: Subject: Greater Roanoke Transit Company June 2013 End of Year Financial Report (Unaudited) The attached report provides Greater Roanoke Transit Company (GRTC) financial performance information on the Fiscal Year 2012 — 2013. GRTC experienced net income of$127,787 for the fiscal year, an improvement of$226,307 from FY 2011—2012. The significant factors affecting financial performance are outlined below. Revenue Total revenue increased 3.8% over FY 2012 and performed at a level that is only .9% below the established budget. Significant factors impacting revenue include: • Operating revenue increased slightly, .47%, over the prior fiscal year and is .7 % below the established budget. • Non-Transportation, or Other Revenue, decreased approximately 30% from the prior year. This includes revenue sources such as advertising, building rental, and parking. • Local, State, and Federal operating assistance increased 7% over the prior year and met budget expectations. Expenses Total expenses increased approximately 1% over FY 2012, but are 2.3% below the established budget. Significant factors impacting expenses include: • Labor and Fringe Benefits decreased approximately 1% and performed 4.5% below the established budget. Greater Roanoke Transit Company P.O. Box 13247 • Roanoke,Virginia 24032 • Phone: 540.982.0305 • Fax: 540.982.2703 • www.valleymetro.com David A. Bowers, President and Members of the Board of Directors GRTC Financials August 22, 2013 Page 2 • Materials and Supplies decreased 1.6%, but exceeded the established budget by approximately 4%. • Utility expenses increased 18%, but performed 5.8% below the established budget. • Miscellaneous Expense increased approximately 10% and exceeded budget by approximately 3%. Respectfully Submitted, Carl L. Palmer General Manager Cc: Vice President of Operations Assistant Vice President of Operations Treasurer Secretary GRTC General Counsel Municipal Auditor + . GREATER ROANOKE TRANSIT COMPANY SOUTHWESTERN VIRGINIA TRANSIT MANAGEMENT COMPANY Operating Revenue and Expense Statement For the Twelve Months Ending June 30, 2013 FY FY FY 13 June June BUDGET %OF FY 13 2013 2012 TOTAL BUDGET OPERATING INCOME • Operating Revenue $2,141,807.88 $2,131,743.29 $2,157,445.00 99.28% Advertising Revenue 116,104.43 141,007.24 126,180.00 92.01% Non-Transportation Revenues 130,069.51 210,018.79 189,390.00 68.68% Total Income $2,387,981.82 $2,482,769.32 $2,473,015.00 96.56% OPERATING EXPENSES Labor-Hourly&Salary $3,213,638.85 $3,129,934.31 $3,232,360.00 99.42% Fringe Benefits 1,586,192.43 1,698,737.73 1,795,402.00 88.35% Services 517,330.46 518,414.20 530,453.00 97.53% Materials&Supplies 1,878,843.09 1,910,207.50 1,809,881.00 103.81% Utilities 260,716.67 221,823.26 276,670.00 94.23% Insurance Costs 371,833.16 339,430.13 419,324.00 88.67% Miscellaneous Expenses 1,038,766.95 946,006.11 1,010,651.00 102.78% Total Expenses $8,867,321.61 $8,764,553.24 $9,074,741.00 97.71% Net Loss ($6,479,339.79) ($6,281,783.92) ($6,601,726.00) 98.15% Local Grants $2,065,485.23 $2,010,338.27 $2,023,636.00 102.07% State Grants 1,717,273.00 1,404,369.00 1,746,659.00 98.32% Federal Grants 2,824,369.00 2,768,557.00 2,831,431.00 99.75% Total Subsidies $6,607,127.23 $6,183,264.27 $6,601,726.00 100.08% Net Income(loss) $127,787.44 ($98,519.65) GREATER ROANOKE TRANSIT COMPANY SUMMARY OF STATEMENT OF NET POSITION 6/30/2013 6/30/2012 Year-to-Date Year-to-Date %of Change ASSETS CASH $ 710,177.03 $ 792,067.78 -10% ACCOUNTS RECEIVABLE $ 862,703.79 $ 636,140.80 36% INVENTORY $ 468,054.61 $ 458,676.61 2% FIXED ASSETS FIXED ASSETS $ 29,882,784.78 $ 29,441,976.68 1% ACCUMULATED DEPRECIATION $ (19,051,413.55) $ (16,914,948.08) 13% NET FIXED ASSETS $ 10,831,371.23 $ 12,527,028.60 -14% PREPAYMENTS $ 151,050.60 $ 65,489.86 131% TOTAL ASSETS $ 13,023,357.26 $ 14,479,403.65 -10% CURRENT LIABILITIES ACCOUNTS PAYABLE $ 559,676.56 $ 472,130.42 19% PAYROLL LIABILITIES $ 276,926.20 $ 271,057.84 2% OTHER LIABILITIES $ 383,043.19 $ 308,853.05 24% CAPITAL CAPITAL STOCK $ 5.00 $ 5.00 0% GRANTS $ 4,921,840.10 $ 5,138,494.60 -4% DEPRECIATION EXPENSE $ (2,136,465.47) $ (1,936,805.10) 10% RETAINED EARNINGS $ 8,505,517.24 $ 9,935,164.49 -14% CAPITAL CONTRIBUTIONS $ 385,027.00 $ 389,023.00 -1% NET INCOME (LOSS) $ 127,787.44 $ (98,519.65) -230% TOTAL CAPITAL $ 11,803,711.31 $ 13,427,362.34 -12% TOTAL LIABILITIES&CAPITAL $ 13,023,357.26 $ 14,479,403.65 -10% GREATER ROANOKE TRANSIT COMPANY BOARD OF DIRECTORS November 14, 2013 David A. Bowers, President, and Members of the Greater Roanoke Transit Company Board of Directors Dear President Bowers and Members of the Board: The regular meeting of the Greater Roanoke Transit Company Board of Directors will be held on Monday November 18, 2013, at 1:00 p.m., in the EOC Conference Room, Room 159, first floor, Noel C. Taylor Municipal Building, 215 Church Avenue, S. W. Sincerellyy, AttLit • hj �t),,L) Stephanie M. Moon Secretary pc: Christopher P. Morrill, Vice President of Operations, GRTC Daniel J. Callaghan, General Counsel, GRTC Ann H. Shawver, Treasurer, GRTC Drew Harmon, Municipal Auditor Sherman M. Stovall, Assistant Vice President of Operations, GRTC Gary E. Tegenkamp, Assistant General Counsel, GRTC Carl L. Palmer, General Manager, Valley Metro, P. O. Box 13247, Roanoke, Virginia 24032 K:\GRTC.13\September 16,2013 Meeting Notice.doc GREATER ROANOKE TRANSIT COMPANY BOARD OF DIRECTORS November 18, 2013 1:00 P.M. EOC CONFERENCE ROOM ROOM 159 AGENDA 1. Call to Order-- Roll Call. Director Karen Michalski-Karney was absent. 2. Approval of Minutes: Regular meeting of GRTC held on Monday, September 16, 2013. Without objection, dispensed with the reading of the minutes and approved as written. 3. Reports of Officers: a. General Manager: 1 . Management Update • Bus Shelter Project • Amtrak Connector Reservation System • Trolley Service • Service to Towers Mall • Smart Way Connector Funding • Department of Rail and Public Transportation (DPRT) Funding Without objection, received and filed. 2. First Quarter Financial Report(July—September)of Fiscal Year 2014. Without objection, received and filed. 3. Approval of the purchase of nine GRTC replacement buses. Adopted Resolution (6-0) L:\CLERK\DATA\CKJC1\GRTC\GRTC 13\November 18,2013 Action Agenda.doc 4. A report from KPMG LLP transmitting its findings for the year ended June 30, 2013; and Financial Statements and Required Supplementary Information — June 30, 2013 and 2012. Without objection, received and filed. 4. Other Business: None. 5. Adjourn. 1:26 p.m. L:\CLERK\DATA\CKJC1\GRTC\GRTC 13\November 18,2013 Action Agenda.doc 3 . 67 , / Valley � z metro Greater Roanoke Transit Company Board of Directors Meeting Management Update November 18, 2013 Bus Shelter Project The solicitation has been released for architectural and engineering services for the Wal-Mart Shelter. It is anticipated that a contract will be awarded in December. The award of the contract will facilitate the development of a construction schedule. Discussions with Wal-Mart on a contract to permit the construction of the shelter are on-going. A change in the designated Wal-Mart corporate representative with authority to approve the contract has resulted in additional delays. The Hurt Park Neighborhood shelter is progressing as planned. The design and construction of the shelter's concrete pad is currently underway. Amtrak Connector Reservation System The Connector's reservation system on Amtrak's national web site processed 342 reservations during the month of October, 154 or 82% more than was processed in September; an average of 11 per day. Trolley Service The recommendations for modifications for the Trolley service went into effect on Thursday, October, 10, 2013. In summary, new stops have been installed on Church Avenue, at Market Street, Jefferson at Luck and Jefferson at Bullitt (Patrick Henry Hotel) Stops have been removed outbound on Jefferson between Church and Luck , on Jefferson at Walnut and at the Carilion Rehabilitation Center; inbound on Jefferson at Walnut and on Franklin at Jefferson. The route has been modified to use Church Avenue via Jefferson Street, instead of Franklin Road. This facilitates the stop on Church Avenue at Market Street, at the southern end of the Market District. Revised headway times of 15 minutes during non-peak and 10 minutes during the peak period (10 a.m. and 2 p.m.) have been instituted. Service to Towers Mall The two inbound/outbound routes serving the Towers Mall are being evaluated for relocating the designated bus stops to alleviate congested operating conditions and provide safer and more convenient service. Smart Way Connector Funding The FY 2012-213 GRTC Budget included $150,000 in supplemental funds from the State for the Connector to mitigate the need for a local match. The provision of the funding was contingent upon GRTC establishing AMTRAK reservation capabilities. After a considerable delay by AMTRAK, reservation capabilities were established in August, 2013. The Department of Rail and Public Transportation (DRPT) has advised that the funding cannot be provided because reservation capability was not established before the end of FY 2013. GRTC had been previously advised that receipt of the funding would not be an issue because the delay was caused by AMTRAK. DRPT is working to have the funding included in the revised FY 2014 State Budget. DRPT Funding As a result of the Governor's Transportation Bill and a revised formula for the allocation of incremental transit funds, GRTC will receive an additional $655,000 in operating assistance from the Department of Rail and Public Transportation (DRPT) for fiscal 2014, subject to approval by the General Assembly. GRTC staff is in the process of developing a spending plan for the additional funds. Greater Roanoke Transit Company P.O. Box 13247 • Roanoke,Virginia 24032 • Phone: 540.982.0305 • Fax: 540.982.2703 • www.valleymetro.com Fiscal 2014 Year-to-Date Ridership Overall ridership is essentially at the same level for September year to date for Fiscal Year 2014 compared to the same period in Fiscal Year 2013. The comparative ridership percentage change for each GRTC service is outlined below: • Fixed Route: -1.4% • Smart Way: -3.8% • Smart Way Connector: +15.5% • Star Line Trolley: +24.7% • STAR: +18.8% It should be noted that the Fixed Route ridership count is impacted by the change that was made in the route that serves Salem. Because a bus transfer is no longer required, actual ridership may be understated. Respe ul C rl L. . er General Manager Copy: Vice President of Operations Assistant Vice President of Operations Treasurer Secretary GRTC General Counsel Municipal Auditor u4 Wes 1 IC a Greater Roanoke Transit Company Board of Directors Meeting Roanoke, Virginia November 18, 2013 David A. Bowers, President and Members of the Board of Directors Dear President Bowers and Members of the Board: Subject: Greater Roanoke Transit Company First Quarter Financial Report The attached report provides financial performance information for the first quarter (July — September) of Fiscal Year (FY) 2014. For the first quarter of FY 2014, Greater Roanoke Transit Company (GRTC) experienced net income of $175,805, an improvement of approximately $20,000 compared to the same period in FY 2013. The significant factors affecting financial performance are outlined below. Revenue Total revenue increased .8% over the same period last year and is 1% above the established budget. Significant factors impacting revenue performance include: • Fare revenue increased 7.6% compared to FY 2013 and is performing at a level that . meets budget expectations. • Other revenue (advertising, building rental, parking, etc.) increased 14% and is 1.5% above the established budget. • Operating assistance decreased 1.7% due primarily to a lower level of funding from the Commonwealth of Virginia. The decrease in operating assistance from the State is offset by an increase in local operating assistance from the City of Roanoke and City of Salem. Expenses Total expenses decreased by less than 1% over the same period last year and are performing at a level that is approximately 1% below the established budget. Significant factors impacting expenditure performance include: Greater Roanoke Transit Company P.O. Box 13247 - Roanoke,Virginia 24032 • Phone: 540.982.0305 - Fax: 540.982.2703 • www.valleymetro.com - David A. Bowers, President and Members of the Board of Directors GRTC Financials November 18, 2013 Page 2 • Labor and fringe benefit expenses decreased approximately 1.5% and are approximately 2% below the established budget. • Materials and supplies expense decreased 8.4%, but exceeds budget by less than 1%. • Miscellaneous expense, which includes the provision of para-transit service increased approximately 20% and exceeds budget by approximately 3%. Respectfully Submitted, Carl L. Palmer General Manager Cc: Vice President of Operations Assistant Vice President of Operations Treasurer Secretary GRTC General Counsel Municipal Auditor GREATER ROANOKE TRANSIT COMPANY SOUTHWESTERN VIRGINIA TRANSIT MANAGEMENT COMPANY Operating Revenue and Expense Statement For the Three Months Ending September 30, 2013 FY FY FY 14 2014 2013 BUDGET %OF FY 14 September September TOTAL BUDGET OPERATING INCOME Operating Revenue $563,555.29 $523,966.56 $2,230,955.00 25.26% Non-Transportation Revenues 70,108.84 61,313.43 264,892.00 26.47% Total Income $633,664.13 $585,279.99 $2,495,847.00 25.39% OPERATING EXPENSES Labor-Hourly&Salary $747,055.81 $766,525.79 $3,278,342.00 22.79% Fringe Benefits 390,726.54 388,983.00 1,710,735.00 22.84% Services 128,786.01 125,690.22 511,456.00 25.18% Materials&Supplies 466,259.74 508,850.93 1,807,101.00 25.80% Utilities 55,584.26 57,779.01 248,577.00 22.36% Insurance Costs 92,437.32 87,148.71 371,069.00 24.91% Miscellaneous Expenses 303,454.81 251,060.28 1,092,975.00 27.76% Total Expenses $2,184,304.49 $2,186,037.94 $9,020,255.00 24.22% Net Loss ($1,550,640.36) ($1,600,757.95) ($6,524,408.00) 23.77% Local Grants $548,305.06 $512,882.41 $2,223,032.00 24.66% State Grants 354,595.00 424,829.00 1,634,420.00 21.70% Federal Grants 823,545.00 818,636.00 2,666,956.00 30.88% Total Subsidies $1,726,445.06 $1,756,347.41 $6,524,408.00 26.46% Net Income(loss) $175,804.70 $155,589.46 GREATER ROANOKE TRANSIT COMPANY SUMMARY OF STATEMENT OF NET POSITION 9/30/2013 9/30/2012 Year-to-Date Year-to-Date % of Change ASSETS CASH $ 797,470.50 $ 980,619.91 -19% ACCOUNTS RECEIVABLE $ 1,275,383.02 $ 1,063,642.26 20% INVENTORY $ 489,885.75 $ 457,356.63 7% FIXED ASSETS FIXED ASSETS $ 29,942,722.41 $ 29,467,020.73 2% ACCUMULATED DEPRECIATION $ (19,479,524.84) $ (17,374,343.43) 12% NET FIXED ASSETS $ 10,463,197.57 $ 12,092,677.30 -13% PREPAYMENTS $ 104,194.57 $ 194,596.10 -46% TOTAL ASSETS $ 13,130,131.41 $ 14,788,892.20 -11% CURRENT LIABILITIES ACCOUNTS PAYABLE $ 456,021.42 $ 605,514.69 -25% PAYROLL LIABILITIES $ 248,670.86 $ 269,630.88 -8% OTHER LIABILITIES $ 826,911.41 $ 767,151.18 8% CAPITAL CAPITAL STOCK $ 5.00 $ 5.00 0% GRANTS $ 4,705,185.60 $ 4,921,840.10 -4% DEPRECIATION EXPENSE $ (428,111.29) $ (459,395.35) -7% RETAINED EARNINGS $ 7,098,520.71 $ 8,505,517.24 -17% CAPITAL CONTRIBUTIONS $ 47,123.00 $ 23,039.00 105% NET INCOME (LOSS) $ 175,804.70 $ 155,589.46 13% TOTAL CAPITAL $ 11,598,527.72 $ 13,146,595.45 -12% TOTAL LIABILITIES &CAPITAL $ 13,130,131.41 $ 14,788,892.20 -11% -1, a, 3 , a Vial ley als..': M Greater Roanoke Transit Company Board of Directors Meeting Board Action Item November 18, 2013 David A. Bowers, President, and Members of the Board of Directors Greater Roanoke Transit Company Roanoke, Virginia Dear President Bowers and Members of the Board: Subject: Bus Procurement Background The Greater Roanoke Transit Company (GRTC) has nine (9) Gillig manufactured buses that were purchased in 2001. In accordance with Chapter V, Section 9 al of Federal Transit Administration (FTA) Circular 9030.1C, each of these buses have either reached their useful life of twelve (12) years or exceeded 500,000 miles of service. Consequently, GRTC is required to replace them. GRTC has initiated a process to procure the buses through an existing "state contract" between Gillig LLC and the Commonwealth of Virginia Department of Rail and Public Transportation (DRPT). GRTC will take the steps necessary to ensure that the state contract is in full compliance with FTA Circular 4220.1 F, governing third party contracting and the Virginia Public Procurement Act(VPPA), pertaining to governmental procurements from nongovernmental sources. GRTC has the necessary funds in the amount of$3.5 million to procure the nine (9) replacement buses. These funds are in two (2) approved grants from FTA ($2.5 million) and DRPT ($800,000). The remaining $200,000 is in GRTC's local capital reserve fund to cover the required local match for these grants. GRTC Board approval is required for the purchase of the buses. Recommendation GRTC Board of Directors approve the purchase of nine (9) GRTC replacement buses in accordance with Federal Transit Administration (FTA) and Virginia Public Procurement Act (VPPA) requirements; that either GRTC's President, Vice-President of Operations, Assistant Vice-President of Operations or General Manager or any combination of two of the four aforementioned individuals, be authorized to execute a purchase contract for said buses. RespA fu, . s fled, General Manager Cc: Vice President of Operations Assistant Vice President of Operations Treasurer Secretary General Counsel Municipal Auditor Greater Roanoke Transit Company P.O. Box 13247 • Roanoke,Virginia 24032 • Phone: 540.982.0305 • Fax: 540.982.2703 • www.valleymetro.com GREATER ROANOKE TRANSIT COMPANY BOARD OF DIRECTORS November 20, 2013 Carl L. Palmer, General Manager Valley Metro P. 0. Box 13247 Roanoke, Virginia 24032 Dear Mr. Palmer: I am attaching a copy of a resolution approving the Greater Roanoke Transit Company's (GRTC) purchase of nine (9) buses to replace buses that are eligible to be replaced under Federal Transit Administration (FTA) regulations. The above referenced measure was adopted by the Board of Directors of the Greater Roanoke Transit Company at a regular meeting held on Monday, November 18, 2013. Sincerely, to, , „tete/a-- Jonathan E. Craft Assistant Secretary Enclosure pc: Christopher P. Morrill, Vice-President of Operations, GRTC Sherman M. Stovall, Assistant Vice-President of Operations, GRTC Daniel J. Callaghan, General Counsel, GRTC Ann H. Shawver, Treasurer, GRTC Gary E. Tegenkamp, Assistant General Counsel, GRTC Drew Harmon, Municipal Auditor K:\GRTC\GRTC 131November 18,2013 Correspondence.Doc BOARD OF DIRECTORS OF THE GREATER ROANOKE TRANSIT COMPANY A RESOLUTION APPROVING THE GREATER ROANOKE TRANSIT COMPANY'S (GRTC) PURCHASE OF NINE (9) BUSES TO REPLACE BUSES THAT ARE ELIGIBLE TO BE REPLACED UNDER FEDERAL TRANSIT ADMINISTRATION (FTA) REGULATIONS; AUTHORIZING THE PROPER GRTC OFFICIALS TO PURCHASE SUCH BUSES FROM A STATE CONTRACT BETWEEN GILLIG LLC AND THE COMMONWEALTH OF VIRGINIA FOR THE DEPARTMENT OF RAIL AND PUBLIC TRANSPORTATION (DRPT) IN ACCORDANCE WITH THE REQUIREMENTS OF FTA, THE VIRGINIA PUBLIC PROCUREMENT ACT (VPPA), AND APPLICABLE STATE LAWS AND REGULATIONS; AND AUTHORIZING SUCH PROPER GRTC OFFICIALS TO TAKE SUCH ACTIONS AND EXECUTE SUCH DOCUMENTS AS MAY BE NECESSARY TO OBTAIN SUCH BUSES AND TO IMPLEMENT, ADMINISTER, AND ENFORCE ANY RESULTANT CONTRACT OR OTHER DOCUMENTS NEEDED TO OBTAIN THE NINE (9) BUSES THROUGH THE ABOVE MENTIONED STATE CONTRACT. WHEREAS, GRTC's General Manager has advised the Board that nine (9) GRTC Gillig Manufactured buses are eligible to be replaced under FTA Regulations and that Gillig currently has a State Contract between Gillig LLC and the Commonwealth of Virginia for the DRPT that GRTC staff wants to utilize to purchase the nine (9) replacement buses, in accordance with the applicable requirements of FTA, VPPA, and state laws and regulations; and WHEREAS, the GRTC General Manager has advised the Board that the necessary funds to procure the nine (9) replacement buses in the amount of$3.5 million is available as set forth in the GRTC General Manager's Report to this Board dated November 18, 2013, and will require a $200,000 GRTC local capital match for the grants that will be used to procure such buses. THEREFORE, BE IT RESOLVED by the Board of Directors of the Greater Roanoke Transit Company as follows: 1 1. The Board hereby approves GRTC's purchase of nine (9) buses to replace the buses that are eligible to be replaced under the FTA Regulations, together with the above funding process, all as set forth in the GRTC General Manager's above Report to this Board. 2. GRTC's President, Vice-President of Operations, Assistant Vice-President of Operations, and General Manager are each hereby authorized to procure the above nine (9) buses from a State Contract between Gillig LLC and the Commonwealth of Virginia for the DRPT in accordance with the requirements of the FTA, VPPA, and applicable state laws and regulations and that such officials may negotiate the terms, conditions, the specifications, and/or other matters related to such buses as they deem appropriate and as allowed by the State Contract. Provided, however,the form of any contract or other documents for the purchase of such buses is to be approved by GRTC's General Counsel and signed and/or approved by two (2) of the four (4) officials named above. 3. The above named GRTC officials are authorized to take such actions and execute such documents, approved as to form by GRTC's General Counsel, as may be necessary to obtain the above mentioned nine (9) buses and to implement, administer, and enforce any resultant contract or other documents needed to obtain such buses through the above mentioned State Contract. ATTEST: Date: atefitfiek /a 1 20/3 Stephanie Moon, Sp6etary t&ism c1t! F. �'i 1 /05.1-5 AirSteeftEpoy 2 5 , da, 5, KPMG GREATER ROANOKE TRANSIT COMPANY — TRANSIT OPERATIONS (A Component Unit of the City of Roanoke, Virginia) Communication to the Board of Directors Year ended June 30, 2013 V 1 PG KPMG LLP Suite 1010 10 S.Jefferson Street Roanoke,VA 24011-1331 October 25,2013 The Board of Directors Greater Roanoke Transit Company— Transit Operations Dear Members: We have audited the financial statements of Greater Roanoke Transit Company — Transit Operations (the Company), a discretely presented component unit of the City of Roanoke, Virginia (the City), as of and for the year ended June 30, 2013, and have issued our report thereon dated October 25, 2013. Under our professional standards, we are providing you with the accompanying information related to the conduct of our audit. Our Responsibility under Professional Standards We are responsible for forming and expressing an opinion about whether the financial statements, that have been prepared by management with the oversight of the Board of Directors, are presented fairly, in all material respects, in conformity with U.S. generally accepted accounting principles. We have a responsibility to perform our audit of the financial statements in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. In carrying out this responsibility,we planned and performed the audit to obtain reasonable assurance about whether the financial statements as a whole are free of material misstatement,whether caused by error or fraud. Because of the nature of audit evidence and the characteristics of fraud, we are to obtain reasonable, not absolute, assurance that material misstatements are detected. We have no responsibility to plan and perform the audit to obtain reasonable assurance that misstatements, whether caused by error or fraud, that are not material to the financial statements are detected. Our audit does not relieve management or the Board of Directors of their responsibilities. In addition, in planning and performing our audit of the financial statements, we considered internal control over financial reporting (internal control) as a basis for designing audit procedures that are appropriate in the circumstances for the purpose of expressing our opinion on the financial statements but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control over financial reporting. Accordingly, we do not express an opinion on the effectiveness of the Company's internal control. We also have a responsibility to communicate significant matters related to the financial statement audit that are, in our professional judgment, relevant to the responsibilities of the Board of Directors in overseeing the financial reporting process. We are not required to design procedures for the purpose of identifying other matters to communicate to you. KPMG LLP is a Delaware limited liability partnership, the US.member firm of KPMG International Cooperative f'KPMG International'l,a Swiss entity. The Board of Directors Greater Roanoke Transit Company— Transit Operations October 25,2013 Page 2 of 4 Other Information in Documents Containing Audited Financial Statements Our responsibility for other information in documents containing the Company's financial statements and our auditors' report thereon does not extend beyond the financial information identified in our auditors' report, and we have no obligation to perform any procedures to corroborate other information contained in any such document, for example, Management's Discussion and Analysis. We have, however, applied certain limited procedures to the required supplementary information as of June 30, 2013 and for the year then ended, in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management's responses to our inquiries, the financial statements, and other knowledge we obtained during our audit of the financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. Accounting Practices and Alternative Treatments Significant Accounting Policies The significant accounting policies used by the Company are described in note 1 to the financial statements. In order to comply with the requirements of U.S. generally accepted accounting principles, the Company implemented the provisions of Governmental Accounting Standards Board (GASB) Statement No. 63, Financial Reporting of Deferred Outflows of Resources, Deferred Inflows of Resources, and Net Position, in fiscal year 2013. Unusual Transactions We noted no transactions entered into by the Company during fiscal year 2013 that were both significant and unusual, and of which, under professional standards, we are required to inform you, or transactions for which there is a lack of authoritative guidance or consensus. Qualitative Aspects of Accounting Practices We have discussed with the Board of Directors and management our judgments about the quality, not just the acceptability, of the Company's accounting principles as applied in its financial reporting. The discussions generally included such matters as the consistency of the Company's accounting policies and their application, and the understandability and completeness of the Company's financial statements,which include related disclosures. Management Judgments and Accounting Estimates The preparation of the financial statements requires management of the Company to make a number of estimates and assumptions relating to the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. MAP The Board of Directors Greater Roanoke Transit Company— Transit Operations October 25, 2013 Page 3 of 4 Uncorrected and Corrected Misstatements Uncorrected Misstatements In connection with our audit of the Company's financial statements, we have discussed with management a certain financial statement misstatement that has not been corrected in the Company's books and records for the year ended June 30, 2013. We have reported such misstatement to management on a Summary of Uncorrected Audit Differences and have received written representation from management that management believes that the effect of the uncorrected financial statement misstatement is immaterial to the financial statements taken as a whole. Attached is a copy of the summary that has been provided to, and discussed with, management. Corrected Misstatements In addition, we proposed no audit adjustments to the financial statements that could, in our judgment, either individually or in the aggregate, have a significant effect on the Company's financial reporting process. Disagreements with Management There were no disagreements with management on financial accounting and reporting matters that would have caused a modification of our auditors' report on the Company's financial statements. Management's Consultation with Other Accountants To the best of our knowledge, management has not consulted with or obtained opinions, either written or oral, from other independent accountants during the year ended June 30, 2013. Significant Issues Discussed,or Subject to Correspondence,with Management Major Issues Discussed with Management prior to Retention We generally discuss a variety of matters with the Board of Directors and management each year prior to our retention by the Board of Directors as the Company's auditors. The result of these discussions was not a condition to our retention. Material Written Communications Attached to this letter, please find copies of the following material written communications between management and us: 1. Engagement letter; 2. Management representation letter; 3. Summary of Uncorrected Audit Differences The Board of Directors Greater Roanoke Transit Company— Transit Operations October 25, 2013 Page 4 of 4 Significant Difficulties Encountered during the Audit We encountered no difficulties in dealing with management in performing and completing our audit. Independence We hereby confirm that as of October 25, 2013, we are independent accountants with respect to the Company under relevant professional and regulatory standards. * * * * * * * This letter to the Board of Directors is intended solely for the use of the Board of Directors and management of the Company and the City and is not intended to be and should not be used by anyone other than these specified parties. Very truly yours, KiPw(G LLP PMT KPMG LLP Telephone +1 540 982 0505 Suite 1010 Fax +1 540 983 8877 10 S.Jefferson Street Internet www.us.kpmg.com Roanoke,VA 2401 1-1 331 March 26, 2013 Board of Directors Greater Roanoke Transit Company P.O. Box 13247 Roanoke,VA 24032 Attention: Mr. Christopher P. Morrill,Vice President of Operations Re: Audit Services for the Greater Roanoke Transit Company—Transit Operations, pursuant to Contract Agreement#87EP7K This letter amends our Engagement Letter dated June 10, 2010, confirming our understanding to provide professional audit services to the Greater Roanoke Transit Company— Transit Operations (the Company), a component unit of the City of Roanoke, Virginia (the City), by substituting the attached Appendix I for the Appendix I originally attached to our Engagement Letter. The attached Appendix 1 lists the services to be rendered and related fees to provide each specified service for the identified time period. Except as specified in this letter and in the Appendix I attached to this letter, all provisions of the aforementioned Engagement Letter and contract previously established on June 10, 2010 remain in effect until either Management or we terminate this agreement or mutually agree to the modification of its terms. The fees for each subsequent year during the duration of the contract will be based on the contract terms previously established on June 10, 2010. We will also perform certain limited procedures to the required supplementary information as required by auditing standards generally accepted in the United States of America. However,we will not express an opinion or provide any assurance on the information. Our report relating to the financial statements will include our consideration of required supplementary information. While our reports may be sent to the Company electronically for your convenience, only the hard copy reports are to be relied upon as our work product. The Company agrees to provide prompt notification if the Company or any of its subsidiaries currently are or become subject to the laws of a foreign jurisdiction that require regulation of any securities issued by the Company or such subsidiary. KPMG uses the services of KPMG controlled entities, KPMG member firms and/or third party service providers to provide professional services and administrative, analytical and clerical support. These parties may have access to certain of your information with the understanding that the confidential information will be maintained under information controls providing equivalent protection as our own. You also understand and agree that KPMG aggregates your information with information from other sources for the purpose of improving audit quality and service, and for use in presentations to clients and non-clients in a form where it is sufficiently de-identified so as not to be attributable to the Company or where the Company could be identified as a source of the information. Other Government Auditing Standards Matters As required by Government Auditing Standards, we have attached a copy of KPMG's most recent peer review report. KPMG LLP is a Dote'.are limited Ilebilit;panner.hip, the U.S.member firm ot',PMG Intemarioml CoaperatKe I'KPMG International'),a S +cs earn'. Board of Directors Greater Roanoke Transit Company March 26,2013 Page 2 It is our understanding that the Municipal Auditor will forward a copy of this letter to the members of the Board of Directors. We shall be pleased to discuss this letter with you at any time. For your convenience in confirming these arrangements, we enclose a copy of this letter. Please sign in the space pros ided and return the copy to us. Very truly}ours, KPMG LLP €, 7/„ R.Timothy Conner Partner cc: Mr.Carl L. Palmer General Manager Greater Roanoke Transit Company Ms. Stephanie Giles Director of Finance Greater Roanoke Transit Company Ms.Ann H. Shawver Treasurer Greater Roanoke Transit Company Mr. Drew Harmon Municipal Auditor City of Roanoke ACCEPTED: Great'/-noke Transit Company uthorized Signature Vice President of Operations Titli)44)" e?f _< <3 Date r Appendix I Fees for Services Based upon the contract terms previously established on June 10, 2010, our fees for services we will perform are as follows: Audit of the financial statements of the Greater Roanoke Transit Company - (Transit Operations) as of and for the years ended June 30, 2013 and 2012, and the related notes to the financial statements.' $20.300 1This fee amount includes the OMB Circular 4133 fees associated with the audit of the Federal 'transit Authority program cluster for the year ended June 30,2013 in accordance with OMB Circular A•I33. Such expenditures are reflected in the Schedule of Expenditures of Federal Awards for the City of Roanoke. The above fees for services will be billed in accordance with the contract terms previously established on June 10, 2010 and are based on the level of experience of the individuals who will perform the services. Circumstances encountered during the performance of these services that warrant additional time or expense could cause us to be unable to deliver them within the terms previously established. We will endeavor to notify you of any such circumstances as they are assessed. Where KPMG is reimbursed for expenses, it is KPMG's policy to bill clients the amount incurred at the time the good or service is purchased. If KPMG subsequently receives a volume rebate or other incentive payment from a vendor relating to such expenses, KPMG does not credit such payment to the client. Instead, KPMG applies such payments to reduce its overhead costs, which costs are taken into account in determining KPMG's standard billing rates and certain transaction charges which may be charged to clients pwc System Review Report To the Partners of KPMCi LLP and the National Peer Review Cemmittee of the AK PA Peer Review Beard We have reviewed the system of quality control for the accounting and auditing practice of KPMG LLP(the;irm),applicable to non-SEC issuers, in effect for the year ended March 31, 2011. Our peer review was conducted in accordance with the Standards for Performing and Reporting on Peer Reviews established by the Peer Review Board of the American Institute of Certified Public Accountants. The Firm is responsible for designing a system of quality control and complying with it to provide the Firm with reasonable assurance of performing and reporting in conformity with applicable professional standards in all material respects. Our responsibility is to express an opinion on the design of the system of quality control and the Firm's compliance therewith based on our review. The nature, obiectives, scope, limitations of and the procedures performed in a System Review are described in the standards at ww.�_.a pii.nrgprsumrnaJ,, As required by the standards, engagements selected for review included engagements performed under Government Auditing Standards, audits of employee benefit plans, an audit performed under FDICIA,and an audit of a carrying broker-dealer, In our opinion. the system of quality control for the accounting and auditing practice of KPMG I.I_P, applicable to non-SEC issuers, in effect for the year ended March 31, 2011, has been suitably designed and complied with to provide the Finn with reasonable assurance of performing and reporting in conformity with applicable professional standards in all material respects. Finns can receive a rating of puss, pass with dtihficiatcy(iws) or pit. KPMG LLP has received a peer review ratin ofpusts. 7."; December 2,2011 • Pr wewuterhoucseCoopers LLP,pm Campus Drive,P.O.Rw 988,Florham Park,N.r o7932 T. (973):46 goon,K(973)z36 goon,www.pwc.cum,ku 1C r!"t Peer Review Program December 8, 2011 John B. Veihmeyer, CPA KPMG LLP 345 Park Ave Bsmt LB6' New York, NY 10154 Dear Mr. Veihmeyer: It is my pleasure to notify you that on December 8, 2011 the National Peer Review Committee accepted the report on the most recent system peer review of your firm. The due date for your next review is September 30, 2014. This is the date by which all review documents should be completed and submitted to the administering entity. As you know, the report had a peer review rating of pass. The Committee asked me to convey its congratulations to the firm. Sincerely, "44.41K, James W. Brackens, Jr. Vice President—Ethics and Quality Practice +1.919.402.4502 nprc(r)aicpa.orq cc: Betty Jo Charles, CPA Firm Number: 10054128 Review Number: 320334 Administered by the National Peer Review Committee T:919.402.4502 I F:919.402.4£76 / aicpa.or Arcs Ie October 25,2013 ICPMG LLP 10 South Jefferson Street, Suite 1010 Roanoke,VA 24011-1331 Ladies and Gentlemen: We are providing this letter in connection with your audits of the financial statements of the Greater Roanoke Transit Company—Transit Operations(the Company),a discretely presented component unit of the City of Roanoke, Virginia,which comprise the statements of net position as of June 30, 2013 and 2012,and the related statements of revenues,expenses and changes in net position,and cash flows for the years then ended,and the related notes to the financial statements,for the purpose of expressing an opinion as to whether these financial statements present fairly,in all material respects,the financial position,the changes in financial position,and cash flows of the Company in conformity with U.S.generally accepted accounting principles. Certain representations in this letter are described as being limited to matters that are material. Items are considered material,regardless of size,if they involve an omission or misstatement of accounting information that, in the light of surrounding circumstances,makes it probable that the judgment of a reasonable person relying on the information would be changed or influenced by the omission or misstatement. We confirm,to the best of our knowledge and belief,the following representations made to you during your audit: 1. We have fulfilled our responsibilities,as set out in the terms of the audit engagement letter dated March 26,2013,for the preparation and fair presentation of the financial statements in accordance with U.S.generally accepted accounting principles. 2. We have made available to you: a. All records,documentation,and information that is relevant to the preparation and fair presentation of the financial statements. b. Additional information that you have requested from us for the purpose of the audit. c. Unrestricted access and the full cooperation of personnel within the entity from whom you determined it necessary to obtain audit evidence. d. All minutes of the meetings of the Board of Directors,or summaries of actions of recent meetings for which minutes have not yet been prepared. 3. Except as disclosed to you in writing,there have been no: Greater Roanoke Transit Company P.O.Box 13247 • Roanoke,Virginia 24032 - Phone:540.982.0305 • Fax: 540.982.2703 • www.valleymetro.com Page 2 a. Communications from regulatory agencies,governmental representatives,employees,or others concerning investigations or allegations of noncompliance with laws and regulations in any jurisdiction,deficiencies in financial reporting practices,or other matters that could have a material adverse effect on the financial statements. b. False statements affecting the Company's financial statements made to the Company's internal auditors,or other auditors who have audited entities under our control upon whose work you may be relying in connection with your audits. 4. There are no: a. Violations or possible violations of laws or regulations,whose effects should be considered for disclosure in the financial statements or as a basis for.recording a loss contingency. b. Unasserted claims or assessments that our lawyer has advised us are probable of assertion and must be disclosed in accordance with paragraphs 96—113 of Governmental Accounting Standards Board(GASB)Statement No.62, Codification of Accounting and Financial Reporting Guidance Contained in Pre-November 30, 1989 FASB and AICPA Pronouncements. c. Other liabilities or gain or loss contingencies that are required to be accrued or disclosed by GASB Statement No.62,paragraphs 96—113. d. Material transactions,for example,grants and other contractual arrangements,that have not been properly recorded in the accounting records underlying the financial statements. e. Events that have occurred subsequent to the date of the statement of net position and through the date of this letter that would require adjustment to or disclosure in the financial statements, except as disclosed in the financial statements or notes to the financial statements. 5. All known actual or possible litigation and claims have been accounted for and disclosed in accordance with GASB Statement No. 62,paragraphs 96—113. 6. We believe that the effects of the uncorrected financial statement misstatement summarized in the accompanying schedule are immaterial,both individually and in the aggregate,to the financial statements as a whole. 7. We acknowledge our responsibility for preventing and detecting fraud, including the design and implementation of programs and controls to prevent and detect fraud;for adopting sound accounting policies;and for the design,implementation,and maintenance of internal control relevant to the preparation and fair presentation of the financial statements and to provide reasonable assurance against the possibility of misstatements that are material to the financial statements whether due to error or fraud. Misstatements arising from fraudulent financial reporting are intentional misstatements,or omissions of amounts or disclosures in financial statements to deceive financial statement users. Misstatements arising from misappropriation of assets involve the theft of an entity's Page 3 assets where the effect of the theft causes the financial statements not to be presented in conformity with U.S. generally accepted accounting principles. 8. We have disclosed to you all deficiencies in the design or operation of internal control over financial reporting of which we are aware,which could adversely affect the Company's ability to initiate,authorize,record,process,or report financial data. There are no significant deficiencies or material weaknesses in the design or operation of internal control over financial reporting of which we are aware,which could adversely affect the Company's ability to initiate,authorize,record,process,or report financial data. We have applied the definitions of a"significant deficiency" and a"material weakness"in accordance with the definitions in AU-C Section 265, Communicating Internal Control Related Matters Identified in an Audit. 9. We have no knowledge of any fraud or suspected fraud affecting the Company involving: a. Management b. Employees who have significant roles in internal control over financial reporting,or c. Others where the fraud could have a material effect on the financial statements. 10. We have no knowledge of any allegations of fraud or suspected fraud affecting the Company received in communications from employees,former employees,regulators,or others. 11. We have no plans or intentions that may materially affect the carrying value or classification of assets and liabilities. 12. We have no knowledge of any officer or directors of the Company, or any other person acting under the direction thereof having taken any action to fraudulently influence,coerce, manipulate,or mislead you during your audits. 13. The following have been properly recorded or disclosed in the financial statements: a. Related party relationships and transactions of which we are aware in accordance with the requirements of U.S.generally accepted accounting principles,including sales, purchases,loans,transfers,leasing arrangements,guarantees,ongoing contractual commitments,and amounts receivable from or payable to related parties. The term"related party"refers to government's related organizations,joint ventures, and jointly governed organizations,as defined in GASB Statement No. 14,The Financial Reporting Entity,as amended;elected and appointed officials of the government;its management;members of the immediate families of elected or appointed officials of the government and its management;and other parties with which the government may deal if one party can significantly influence the management or operating policies of the other to an extent that one of the transacting parties might be prevented from fully pursuing its own separate interests. Another party also is a related party if it can significantly influence the management or operating policies of the transacting parties or if it has an ownership interest in one of the transacting parties and Page 4 can significantly influence the other to an extent that one or more of the transacting parties might be prevented from fully pursuing its own separate interests. b. Guarantees,whether written or oral,under which the Company is contingently liable. c. Arrangements with financial institutions involving compensating balances or other arrangements involving restrictions on cash balances and lines of credit or similar arrangements. d. Agreements to repurchase assets previously sold,including sales with recourse. e. Changes in accounting principle affecting consistency. f. The existence of and transactions with joint ventures and other related organizations. 14. The Company has satisfactory title to all owned assets,and there are no liens or encumbrances on such assets,nor has any asset been pledged as collateral,except as disclosed in the notes to the financial statements. 15. The Company has complied with all aspects of laws,regulations,contractual agreements,and grants that may affect the financial statements,including noncompliance. 16. Management is responsible for compliance with the laws,regulations and provisions of contracts and grant agreements applicable to the Company.Management has identified and disclosed to you all laws,regulations and provisions of contracts and grant agreements that have a direct and material effect on the determination of financial statement amounts. 17. Receivables reported in the financial statements represent valid claims against debtors arising on or before the date of the statement of net position and have been appropriately reduced to their estimated net realizable value. 18. Deposits and investment securities are properly classified and reported. 19. The following information about financial instruments with off-balance-sheet risk and financial instruments with concentrations of credit risk has been properly disclosed in the financial statements: a. Extent,nature,and terms of financial instruments with off-balance-sheet risk; b. The amount of credit risk of financial instruments with off-balance-sheet credit risk, and information about the collateral supporting such financial instruments;and c. Significant concentrations of credit risk arising from all financial instruments and information about the collateral supporting such financial instruments. 20. We believe that all material expenditures or expenses that have been deferred to future periods will be recoverable. 21. Capital assets are properly capitalized,reported and,if applicable,depreciated. Page 5 22. The Company has no: a. Commitments for the purchase or sale of services or assets at prices involving material probable loss. b. Material amounts of obsolete,damaged,or unusable items included in the inventories at greater than salvage values. 23. The Company has identified and properly accounted for and presented all deferred outflows of resources and deferred inflows of resources. 24. Components of net position(net investment in capital assets;restricted;and unrestricted)are properly classified and,if applicable,approved. 25. Revenues are appropriately classified in the statement of revenues,expenses and changes in net position. 26. The Company has identified and properly accounted for all nonexchange transactions. 27. Expenses have been appropriately classified in or allocated to functions and programs in the statement of revenues,expenses and changes in net position, and allocations have been made on a reasonable basis. 28. Special and extraordinary items are appropriately classified and reported. 29. We have disclosed to you all accounting policies and practices we have adopted that,if applied to significant items or transactions,would not be in accordance with U.S.generally accepted accounting principles.We have evaluated the impact of the application of each such policy and practice,both individually and in the aggregate,on the Company's current period financial statements,and the expected impact of each such policy and practice on future periods' financial reporting.We believe the effect of these policies and practices on the financial statements is not material. Furthermore,we do not believe the impact of the application of these policies and practices will be material to the financial statements in future periods. 30. We acknowledge our responsibility for the presentation of the required supplementary information which includes,such as management's discussion and analysis,in accordance with the applicable criteria and prescribed guidelines established by the Governmental Accounting Standards Board and: a. Believe the required supplementary information,including its form and content,is fairly presented in accordance with the applicable criteria and prescribed guidelines. b. The methods of measurement or presentation of the required supplementary information have not changed from those used in the prior period]. c. The significant assumptions or interpretations underlying the measurement or presentation of the required supplementary information are reasonable and appropriate in the circumstances. 31. The Company has complied with all applicable laws and regulations in adopting,approving, and amending budgets. Page 6 32. In accordance with Government Auditing Standards,we have identified to you all previous audits,attestation engagements,and other studies that relate to the objectives of this audit, including whether related recommendations have been implemented. Further,we confirm that we are responsible for the fair presentation in the financial statements of the financial position,changes in financial position,and cash flows in conformity with U.S.generally accepted accounting principles. We are also responsible for establishing and maintaining effective internal control over financial reporting. Very truly yours, GREATER ROANO , SIT COMPANY inf vt.: 4S_____ earl L. •: er S phanie Giles Genera ,t ger Director of Finance I� .pher P.Morrill .Shawver Vice President of Operations Treasurer |¢ H ~^n # ) »/� H \ } !| `"Ig II g..,Ed ! ,.,{! ! "egg a. ith !<1i` |!!|! .1 I O |•!! in III !|!| 111 !,. WNW W ° ,.. I . j}/\` } / \!fi ! _i ! : - ji i !i } r ) j _ ` - !- !- 'W ' } >cAz •1. :1 - !, -!, \ (j \, , I \ ! i “\i n ! bn p/. 0!tAr. ,i \ !! H;H P„ ) .. } °Ili ; 3, a', KPMG GREATER ROANOKE TRANSIT COMPANY — TRANSIT OPERATIONS (A Component Unit of the City of Roanoke, Virginia) Financial Statements and Required Supplementary Information June 30, 2013 and 2012 (With Independent Auditors' Reports Thereon) GREATER ROANOKE TRANSIT COMPANY— TRANSIT OPERATIONS (A Component Unit of the City of Roanoke, Virginia) Table of Contents Page(s) Required Supplementary Information: Management's Discussion and Analysis(unaudited) 1 —8 Independent Auditors' Report 9— 10 Financial Statements: Statements of Net Position 11 Statements of Revenues, Expenses and Changes in Net Position 12 Statements of Cash Flows 13 Notes to Financial Statements 14-21 Independent Auditors' Report on Internal Control over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards 22—23 GREATER ROANOKE TRANSIT COMPANY— TRANSIT OPERATIONS (A Component Unit of the City of Roanoke,Virginia) Management's Discussion and Analysis June 30, 2013 and 2012 The management of the Greater Roanoke Transit Company (the Company) offers readers of our financial statements the following narrative overview and analysis of our financial activities for the years ended June 30, 2013 and 2012. The following should be read in conjunction with our financial statements and notes thereto. Financial Statements The financial statements of the Company reflect the transit operations of the Company. Our financial statements are prepared on the accrual basis of accounting. This is the same basis of accounting employed by most private-sector enterprises. Our financial statements include the following components: • Statements of Net Position, which presents information on the assets and liabilities of the Company, with the resulting difference between the two reported as net position. Over time, increases or decreases in net position may serve as a useful indicator of whether the financial position of the Company is improving or deteriorating. • Statements of Revenues, Expenses and Changes in Net Position, which reports revenues and expenses, classified as operating and nonoperating, and capital contributions for the period. The resulting change in net position for the period is combined with the beginning of the year total net position balance in order to reconcile to the end of the year total net position on the Statements of Net Position. • Statements of Cash Flows, which reports the cash flows experienced by the Company from operating, noncapital financing, capital and related financing, and investing activities. The net result of the cash provided by or used in these activities for the period, added to the beginning of the year cash and cash equivalents balance reconciles to the cash and cash equivalents balance presented on the Statements of Net Position. • Notes to Financial Statements, which explain and provide additional information on the data presented in the financial statements as of and for the years ended June 30, 2013 and 2012. Financial Highlights The following major financial highlights are of note for the years ended June 30,2013 and 2012: Fiscal Year 2013 • Assets exceeded liabilities by $11,803,712 (net position) as of June 30, 2013. Net position includes $972,341, which is considered unrestricted and available to meet ongoing and future obligations of the Company, including its share of capital projects. • Net position decreased $1,623,651 for the year ended June 30, 2013. The unrestricted portion of net position increased $72,007 and the net investment in capital assets portion of net position decreased $1,695,658 compared to the balance as of June 30,2012. 1 (Continued) GREATER ROANOKE TRANSIT COMPANY— TRANSIT OPERATIONS (A Component Unit of the City of Roanoke,Virginia) Management's Discussion and Analysis June 30, 2013 and 2012 • Operating revenues increased by $10,065 compared to the previous year, due primarily to an increase in passenger fares and an increase in ridership. • Operating expenses increased $302,428 primarily due to increases in utilities, commercial insurance, depreciation, and an increase in purchased services relating to Specialized Transit Arranged Rides (S.T.A.R.). The Company outsources S.T.A.R. services to a separate contractor,whose increase in rates for the year ended June 30, 2013 resulted in an increase in cost to the Company. • Total net nonoperating revenues increased $319,011 compared to the previous year due primarily to an increase in noncapital grant assistance of$423,863, partially offset by a decrease in local share and other revenue of$104,852. • Capital contributions decreased $3,997 compared to the previous year due to decreased federal and state contributions for capital asset purchases in fiscal year 2013. Fiscal Year 2012 • Assets exceeded liabilities by $13,427,363 (net position) as of June 30, 2012. Net position includes $900,334, which is considered unrestricted and available to meet ongoing and future obligations of the Company, including its share of capital projects. • Net position decreased $1,646,302 for the year ended June 30, 2012. The unrestricted portion of net position decreased $123,548 and the net investment in capital assets portion of net position decreased $1,522,754 compared to the balance as of June 30, 2011. • Operating revenues increased by $128,082 compared to the previous year, due primarily to additional income from the Smart Way Connector service and an increase in ridership. • Operating expenses increased $646,716 primarily due to increases in fuel, employee benefits cost, and an increase in purchased services relating to Specialized Transit Arranged Rides (S.T.A.R.). The Company outsources S.T.A.R. services to a separate contractor, whose increase in rates for the year ended June 30, 2012 resulted in an increase in cost to the Company. • Total net nonoperating revenues increased $898,344 compared to the previous year due primarily to an increase in noncapital grant assistance of$849,587. • Capital contributions decreased $441,347 compared to the previous year due to decreased federal and state contributions for capital asset purchases in fiscal year 2012. Additional detail on the above items, along with other information, is discussed in the following sections. 2 (Continued) GREATER ROANOKE TRANSIT COMPANY— TRANSIT OPERATIONS (A Component Unit of the City of Roanoke,Virginia) Management's Discussion and Analysis June 30,2013 and 2012 Net Position A summary of the major components of the Statements of Net Position as of June 30, 2013, 2012, and 2011 is as follows: Summary of Net Position Fiscal year Fiscal year 2013 2012 increase increase 2013 2012 2011 (decrease) (decrease) Current assets $ 2,191,987 1,952,375 1,779,553 239,612 172,822 Capital assets,net 10,831,371 12,527,029 14,049,783 (1,695,658) (1,522,754) Total assets 13,023,358 14,479,404 15,829,336 (1,456,046) (1,349,932) Current liabilities 1,219,646 1,052,041 755,671 167,605 296,370 Net investment in capital assets 10,831,371 12,527,029 14,049,783 (1,695,658) (1,522,754) Unrestricted 972,341 900,334 1,023,882 72,007 (123,548) Total net position $ 11,803,712 13,427,363 15,073,665 (1,623,651) (1,646,302) Fiscal Year 2013 Total net position of $11,803,712 decreased $1,623,651, or 12.1%, for the year ended June 30, 2013. The decrease in net position is primarily due to a decrease in capital assets, net, which decreased $1,695,658 or 13.5%. The unrestricted portion of net position increased$72,007 in the current period. Current assets increased $239,612 primarily due to increases in amounts due from the Federal Transit Administration (PTA) and the Department of Rail and Public Transportation (DRPT) of$121,732 and $156,174, respectively. Other assets increased$85,561 primarily due to an increase in prepaid automobile insurance. These increases were partially offset by a decrease in accounts receivable of$81,359. Current liabilities increased $167,605, or 15.9%, compared to the balance as of June 30, 2012. The increase is primarily due to an increase in trade accounts payable and other liabilities of$87,547 and $74,190, respectively. The increase in trade accounts payable is primarily a result of payments due as of June 30, 2013 for vehicle insurance of approximately$81,000. The increase in other liabilities is primarily due to an increase of$50,337 in the remaining balance of$110,071 received in advance from the DRPT as the state match for Smart Way and Smart Way Connector operating services for the period of October 2012 through September 2013. It is important to note that the Company has maintained financial operations without issuance of any long-term debt during fiscal year 2013. 3 (Continued) GREATER ROANOKE TRANSIT COMPANY— TRANSIT OPERATIONS (A Component Unit of the City of Roanoke, Virginia) Management's Discussion and Analysis June 30, 2013 and 2012 Fiscal Year 2012 Total net position of $13,427,363 decreased $1,646,302, or 10.9%, for the year ended June 30, 2012. The decrease in net position is primarily due to a decrease in capital assets, net, which decreased $1,522,754, or 10.8%. The unrestricted portion of net position decreased $123,548 in the current period primarily due to less funding provided by the Federal Transit Administration (FTA), which is necessary to cover daily operating expenditures. Current assets increased $172,822 primarily due to an increase in cash and cash equivalents and accounts receivable of $348,901 and $71,011, respectively. These increases were partially offset by a decrease in the amount due from the FTA of$251,977. Current liabilities increased $296,370, or 39.2%, compared to the balance as of June 30, 2011. The increase is primarily due to an increase in trade accounts payable and other liabilities of$93,798 and$164,178, respectively. The increase in trade accounts payable is primarily due to payments due as of June 30, 2012 for industrial fans and exterior painting of the administrative facility totaling approximately $47,000. The increase in other liabilities is primarily due to an increase in FTA retained proceeds of $53,386 and the remaining balance of $87,869 received in advance from the DRPT as the state match for Smart Way and Smart Way Connector operating services for the period of October 2011 through September 2012. It is important to note that the Company has maintained financial operations without issuance of any long-term debt during fiscal year 2012. Changes in Net Position Condensed financial information from the Statements of Revenues, Expenses, and Changes in Net Position for the years ended June 30, 2013, 2012, and 2011 is provided below, followed by additional breakdown and analysis of the changes in the various categories: Condensed Statements of Changes in Net Position Fiscal year Fiscal year 2013 2012 increase increase 2013 2012 2011 (decrease) (decrease) Total operating revenues $ 2,141,808 2,131,743 2,003,661 10,065 128,082 Total operating expenses (11,003,786) (10,701,358) (10,054,642) 302,428 646,716 Total net nonoperating revenues 6,853,301 6,534,290 5,635,946 319,011 898,344 Capital contributions 385,026 389,023 830,370 (3,997) (441,347) Change in net position (1,623,651) (1,646,302) (1,584,665) 22,651 (61,637) Ending total net position 11,803,712 13,427,363 15,073,665 (1,623,651) (1,646,302) 4 (Continued) GREATER ROANOKE TRANSIT COMPANY- TRANSIT OPERATIONS (A Component Unit of the City of Roanoke,Virginia) Management's Discussion and Analysis June 30,2013 and 2012 Additional discussion on each component of the Statement of Revenues, Expenses, and Changes in Net Position is provided in the following paragraphs: Revenues Fiscal year Fiscal year 2013 2012 increase increase 2013 2012 2011 (decrease) (decrease) Operating revenues: Passenger fares $ 1,790,843 1,750,386 1,690,378 40,457 60,008 Smart Way fares 243,135 255,393 244,384 (12,258) 11,009 Smart Way Connector fares 27,708 32,165 - (4,457) 32,165 S.T.A.R.fares 76,959 85,344 67,460 (8,385) 17,884 Other primary fares 3,163 8,455 1,439 (5,292) 7,016 Total operating revenues 2,141,808 2,131,743 2,003,661 10,065 128,082 Nonoperating revenues: Noncapital grants 6,607,127 6,183,264 5,333,677 423,863 849,587 Advertising 116,104 141,007 96,098 (24,903) 44,909 Rental income 60,936 109,347 128,342 (48,411) (18,995) Parking income 47,656 51,371 51,184 (3,715) 187 Interest income 4,278 5,722 4,983 (1,444) 739 Gain on disposal of capital assets,net 20,226 11,311 (20,226) 8,915 Miscellaneous 17,200 23,353 10,351 (6,153) 13,002 Total net nonoperating revenues 6,853,301 6,534,290 5,635,946 319,011 898,344 Capital contributions 385,026 389,023 830,370 (3,997) (441,347) Total revenues $ 9,380,135 9,055,056 8,469,977 325,079 585,079 Fiscal Year 2013 Total operating revenues increased $10,065, or 0.5%. Passenger fares increased $40,457, or 2.3%, compared to the previous period primarily due to an increase in passenger ridership in the current period. Passenger ridership increased to 2,315,897 from 2,305,993 in the prior year for all standard fixed routes. In fiscal year 2006, the Company started a commuter service (The Smart Way) between Roanoke and Blacksburg. The Smart Way service operating revenue decreased $12,258, or 4.8%, for the year ended June 30, 2013 compared to the previous year. Ridership on The Smart Way service decreased to 66,132 in fiscal year 2013 from 72,247 in fiscal year 2012. In fiscal year 2012, the Company started a commuter service (The Smart Way Connector) that travels to Lynchburg's multi-modal station, which includes the AmTrak passenger station. Smart Way Connector service revenues decreased to$27,708 in fiscal year 2013 from$32,165 in fiscal year 2012. 5 (Continued) GREATER ROANOKE TRANSIT COMPANY— TRANSIT OPERATIONS (A Component Unit of the City of Roanoke,Virginia) Management's Discussion and Analysis June 30, 2013 and 2012 The Company occasionally provides charter service for organizations or individuals that are unable to obtain this service from other service providers. Other primary fares for these services decreased to $3,163 in fiscal year 2013 from $8,455 in fiscal year 2012. The Company's total passenger rides for fiscal year 2013, including all fixed and Smart Way routes,were 2,459,763. Total net nonoperating revenues increased $319,011, or 4.9%, compared to the previous year primarily due to increases in noncapital grant funding of$423,863. The Commonwealth of Virginia funding increased $310,225, the Town of Vinton funding increased $33,276, and the City of Salem funding increased $24,101 compared to the previous year. These increases were partially offset by decreases in revenues from advertising on the buses and rental income which decreased $24,903 and $48,411, respectively, compared to the year ended June 30, 2012. Capital contributions decreased $3,997, or 1.0%, compared to the previous year, due to the Company's reduction in overall capital purchases in fiscal year 2013 compared to fiscal year 2012. Capital assets purchased in fiscal year 2013 included three (3)replacement vehicles for para-transit services and two(2) support vehicles. Capital contributions fluctuate based on the capital asset needs of the Company. Accordingly, capital contributions decreased for the year ended June 30, 2013 over the year ended June 30, 2012 as a result of the decrease in capital asset purchases. Fiscal Year 2012 Total operating revenues increased $128,082, or 6.4%. Passenger fares increased $60,008, or 3.5%, compared to the previous period primarily due to an increase in passenger ridership in the current period. Passenger ridership increased to 2,305,993 from 2,222,984 in the prior year for all standard fixed routes. In fiscal year 2006, the Company started a commuter service (The Smart Way) between Roanoke and Blacksburg. The Smart Way service operating revenue increased $11,009, or 4.5%, for the year ended June 30, 2012 compared to the previous year. Ridership on The Smart Way service increased to 72,247 in fiscal year 2012 from 68,117 in fiscal year 2011. In fiscal year 2012, the Company started a commuter service (The Smart Way Connector) that travels to Lynchburg's multi-modal station, which includes the AmTrak passenger station. The Company generated $32,165 in additional income from this service with 12,761 passenger rides. The Company's total passenger rides for fiscal year 2012, including all fixed and Smart Way routes,were 2,437,566. Total net nonoperating revenues increased $898,344, or 15.9%, compared to the previous year primarily due to increases in noncapital grant funding of$849,587. The Commonwealth of Virginia funding increased $261,911, the City of Roanoke funding increased $469,911, and the City of Salem funding increased $29,853 compared to the previous year. Revenues from advertising on the buses increased $44,909 compared to the year ended June 30, 2011. Capital contributions decreased $441,347, or 53.1%, compared to the previous year, due to the Company's reduction in overall capital purchases in fiscal year 2012 compared to fiscal year 2011. Capital assets purchased in fiscal year 2012 included industrial fans and a GPS system for the Company's buses. 6 (Continued) GREATER ROANOKE TRANSIT COMPANY— TRANSIT OPERATIONS (A Component Unit of the City of Roanoke,Virginia) Management's Discussion and Analysis June 30, 2013 and 2012 Capital contributions fluctuate based on the capital asset needs of the Company. Accordingly, capital contributions decreased for the year ended June 30, 2012 over the year ended June 30, 2011 as a result of the decrease in capital asset purchases. Expenses Fiscal year Fiscal year 2013 2012 increase increase 2013 2012 2011 (decrease) (decrease) Operating expenses: Transportation $ 5,138,806 5,227,804 4,756,970 (88,998) 470,834 Vehicle maintenance 976,638 940,507 884,549 36,131 55,958 Nonvehicle maintenance 268,863 262,066 268,783 6,797 (6,717) Administration 2,483,013 2,334,176 2,178,603 148,837 155,573 Depreciation 2,136,466 1,936,805 1,965,737 199,661 (28,932) Total operating expenses $ 11,003,786 10,701,358 10,054,642 302,428 646,716 Fiscal Year 2013 Total operating expenses totaling $11,003,786 increased $302,428 compared to fiscal year 2012. Administration expense increased $148,837, or 6.4%, primarily due to an increase in purchased transportation costs of$40,199, commercial insurance of $32,403, and utilities costs of $39,443. Depreciation expense increased $199,661 or 10.3% primarily due to a correction to the estimated life of the Company's Trolley buses. The buses were initially depreciated on the basis of twelve (12)years but upon determination that the four(4) buses are medium duty not heavy duty, the estimated life was adjusted to seven (7)years and prior years' depreciation was trued up in fiscal year 2013 as well. Fiscal Year 2012 Total operating expenses totaling $10,701,358 increased $646,716 compared to fiscal year 2011. Transportation expenses increased $470,834, or 9.9%, primarily due to increased fuel costs of$298,959 and health insurance costs of$48,716. Maintenance expenses increased $55,958, or 6.3% primarily due to increased health insurance costs of$15,537 and consumed vehicle parts costs of$22,910. Administration expense increased $155,573, or 7.1%primarily due to an increase in purchased transportation costs of$142,822. 7 (Continued) GREATER ROANOKE TRANSIT COMPANY— TRANSIT OPERATIONS (A Component Unit of the City of Roanoke,Virginia) Management's Discussion and Analysis June 30,2013 and 2012 Looking Ahead to Fiscal Year 2014 The Greater Roanoke Transit Company Board of Directors has adopted the Company's budget for fiscal year 2014. The Company begins fiscal year 2014 as a large urbanized area designated recipient, a recipient in an urbanized area over 200,000 in population. This designation reduces the percentage of operating funding available from 5307 funds (i.e. Urbanized Area Formula Program for transit capital and operating funding) to seventy-five percent from one hundred percent compared to previous years. The Company must compete for regional funding within the Roanoke Valley Area Regional Planning Organization for its capital equipment and other capital project funding. The Company has received notice that the Organization will fund the replacement of one(1)of the Company's Smart Way buses in fiscal year 2014. Request for Information This financial report is designed to provide interested parties with a general overview of the Company's finances. Should you have any questions about this report or need additional information, please contact Stephanie Giles, Director of Finance, 1108 Campbell Ave., S.E., P. O. Box 13247, Roanoke, Virginia 24032. 8 KPMGKPMG LLP Suite 1010 10 S-Jefferson Street Roanoke,VA 24011-1331 Independent Auditors' Report The Board of Directors Greater Roanoke Transit Company: Report on the Financial Statements We have audited the accompanying financial statements of the Greater Roanoke Transit Company — Transit Operations (the Company), a discretely presented component unit of the City of Roanoke, Virginia, which comprise the statements of net position as of June 30, 2013 and 2012, and the related statements of revenues, expenses and changes in net position, and cash flows for the years then ended, and the related notes to the financial statements. Management's Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with U.S. generally accepted accounting principles; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Auditors'Responsibility Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditors'judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control. Accordingly,we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. 9 KPMG LLP is a Delaware limited liabitlty partnership. the U.S-member firm of KPMG International Cooperative International"1,a Swiss entity. Opinion In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of the Company as of June 30, 2013 and 2012, and the changes in its financial position and its cash flows for the years then ended in accordance with U.S. generally accepted accounting principles. Other Matter Required Supplementary Information U.S. generally accepted accounting principles require that the Management's Discussion and Analysis on pages 1 through 8 be presented to supplement the financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management's responses to our inquiries, the financial statements, and other knowledge we obtained during our audit of the financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated October 25, 2013 on our consideration of the Company's internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the Company's internal control over financial reporting and compliance. K'PMc7 LL1 October 25,2013 10 GREATER ROANOKE TRANSIT COMPANY— TRANSIT OPERATIONS (A Component Unit of the City of Roanoke,Virginia) Statements of Net Position June 30, 2013 and 2012 Assets 2013 2012 Current assets: Cash and cash equivalents, including cash equivalents of $360,562 and$465,277 in 2013 and 2012,respectively (note 2) $ 710,177 792,068 Due from: Federal Transit Administration 362,812 241,080 Commonwealth of Virginia 360,125 203,951 Local governments 65,615 35,598 Accounts receivable 74,152 155,511 Supplies and materials(note 4) 468,055 458,677 Other assets 151,051 65,490 Total current assets 2,191,987 1,952,375 Capital assets(notes 3 and 5): Land 720,724 720,724 Buildings, structures and improvements 10,694,279 10,655,037 Buses 14,752,168 14,752,168 Shop and garage equipment 2,944,333 2,573,802 Office equipment and furnishings 771,281 740,246 Accumulated depreciation (19,051,414) (16,914,948) Capital assets,net 10,831,371 12,527,029 Total assets 13,023,358 14,479,404 Liabilities Current liabilities: Trade accounts payable 559,677 472,130 Accrued salaries and benefits 276,926 271,058 Other liabilities (notes 7 and 8) 383,043 308,853 Total current liabilities 1,219,646 1,052,041 Commitments and contingencies(notes 6 and 8) Net Position Net investment in capital assets 10,831,371 12,527,029 Unrestricted 972,341 900,334 Total net position $ 11,803,712 13,427,363 See accompanying notes to financial statements. 11 GREATER ROANOKE TRANSIT COMPANY- TRANSIT OPERATIONS (A Component Unit of the City of Roanoke,Virginia) Statements of Revenues,Expenses and Changes in Net Position Years ended June 30,2013 and 2012 2013 2012 Operating revenues: Charges for passenger fares $ 2,141,808 2,131,743 Operating expenses: Salaries and wages 3,213,638 3,129,934 Fringe benefits(note 6) 1,586,192 1,698,738 Services 517,330 518,414 Utilities 260,717 221,823 Insurance 371,833 339,430 Purchased services and other expenses 1,038,767 946,006 Materials and supplies 1,878,843 1,910,208 Depreciation 2,136,466 1,936,805 Total operating expenses 11,003,786 10,701,358 Operating loss (8,861,978) (8,569,615) Nonoperating revenues(expenses): Noncapital grants or assistance: Federal Transit Administration 2,857,121 2,812,022 Commonwealth of Virginia 1,725,463 1,415,238 City of Roanoke 1,649,666 1,648,504 City of Salem 156,353 132,252 Town of Vinton 118,316 85,040 New River Valley Metropolitan Planning Organization 64,622 63,460 Carilion Foundation 51,672 56,226 Downtown Roanoke,Inc. 24,856 24,856 O.Winston Link Transportation Museum 29,358 - Commonwealth Coach and Trolley Museum (35,054) (13,735) Roanoke Chapter National Railway Historical Society (35,246) (40,599) Total noncapital grants or assistance 6,607,127 6,183,264 Local share and other revenue: Advertising 116,104 141,007 Rental income(note 8) 60,936 109,347 Parking income 47,656 51,371 Interest income 4,278 5,722 Gain on disposal of capital assets - 20,226 Other 17,200 23,353 Total local share and other revenue 246,174 351,026 Total net nonoperating revenues 6,853,301 6,534,290 Loss before capital contributions (2,008,677) (2,035,325) Capital contributions(note 3) 385,026 389,023 Change in net position (1,623,651) (1,646,302) Total net position at beginning of year 13,427,363 15,073,665 Total net position at end of the year $ 11,803,712 13,427,363 See accompanying notes to financial statements. 12 GREATER ROANOKE TRANSIT COMPANY— TRANSIT OPERATIONS (A Component Unit of the City of Roanoke,Virginia) Statements of Cash Flows Years ended June 30,2013 and 2012 2013 2012 Cash flows from operating activities and local share and other revenue(excluding interest): Cash received from customers $ 2,141,808 2,131,743 Cash payments to suppliers for goods and services (4,015,494) (3,744,067) Cash payments to employees for services (4,793,962) (4,790,278) Local share and other revenue received 323,255 254,067 Net cash used in operating activities (6,344,393) (6,148,535) Cash flows from noncapital financing activity: Noncapital grants received 6,248,390 6,430,145 Cash flows from capital and related financing activities: Acquisition of capital assets (426,006) (359,830) Proceeds from sale of capital assets — 20,226 Capital contributions 435,840 401,173 Net cash provided by capital and related financing activities 9,834 61,569 Cash flows from investing activity: Interest income received 4,278 5,722 Net(decrease)increase in cash and cash equivalents (81,891) 348,901 Cash and cash equivalents at beginning of year 792,068 443,167 Cash and cash equivalents at end of year $ 710,177 792,068 Reconciliation of operating loss to net cash used in operating activities: Operating loss $ (8,861,978) (8,569,615) Adjustments to reconcile operating loss to net cash used in operating activities: Local share and other net revenue(excluding interest) 241,896 345,304 Depreciation 2,136,466 1,936,805 Gain on disposal of capital assets (20,226) Changes in assets and liabilities: (Increase)decrease in accounts receivable 81,359 (71,011) (Increase)in supplies and materials (9,378) (1,944) (Increase)in other assets (85,561) (9,997) Increase in trade accounts payable 72,745 39,577 Increase in accrued salaries and benefits 5,868 38,394 Increase in other liabilities 74,190 164,178 Net cash used in operating activities $ (6,344,393) (6,148,535) Noncash investing activities: At June 30,2013 and 2012,purchases of capital assets included in trade accounts payable totaled$14,802 and$54,221,respectively. See accompanying notes to financial statements. 13 GREATER ROANOKE TRANSIT COMPANY— TRANSIT OPERATIONS (A Component Unit of the City of Roanoke, Virginia) Notes to Financial Statements June 30, 2013 and 2012 (1) Summary of Significant Accounting Policies (a) Organization and Purpose The Greater Roanoke Transit Company (the Company) is a private, nonprofit, public service organization wholly owned by the City of Roanoke, Virginia (the City). The Company provides a comprehensive range of transportation services for the residents of the greater Roanoke area, including bus service along fixed routes, special services for the disabled, and shuttle buses. Similar to other public transportation systems, government subsidies are required to fund operations. The Company is the recipient of operating and capital grants from federal, state, and local agencies, including the Federal Transit Administration (the FTA), the Virginia Department of Rail and Public Transportation, and the City. Company policy decisions are made by the Board of Directors, which is comprised of two (2) City Council members, two (2) City employees, and three (3) citizens of the community at large. The Company contracts with First Group America Company (dba First Transit, Inc.) to provide senior management professionals. The remainder of the staff are employees of Southwestern Virginia Transit Management Company, Inc. (SVTMC), a subsidiary of First Transit, Inc. Bargaining unit employees of SVTMC, which include all bus drivers and mechanics, are under a separate contract ratified by the Amalgamated Transit Union, A.F.L.-C.I.O.-C.L.C., Local Union 1493 (Union) in February 2013 and expiring in June 30,2014. As of and for the years ended June 30, 2013 and 2012, the Company is reported as a discretely presented component unit of the primary governmental reporting entity of the City. (b) Basis of Accounting • The accompanying financial statements reflect the transit operations of the Company and are accounted for on the economic resources measurement focus and use the accrual basis of accounting, which is in accordance with U.S. generally accepted accounting principles (GAAP) and conform with the requirements of the FTA's National Transit Database, as amended. (c) Cash and Cash Equivalents Cash and cash equivalents are considered to be cash on hand and short-term investments with original maturities of three months or less from the date of acquisition. Cash equivalents are stated at cost, which approximates market value, and consist of money market mutual funds and a pooled repurchase agreement with an original maturity of three months or less collateralized by U.S. government securities. At June 30, 2013, the Company's cash and cash equivalents on hand and in banks had a carrying value of$710,177 and an actual bank balance of$305,970. 14 (Continued) GREATER ROANOKE TRANSIT COMPANY— TRANSIT OPERATIONS (A Component Unit of the City of Roanoke,Virginia) Notes to Financial Statements June 30,2013 and 2012 (d) Capital Assets Capital assets are stated at cost less accumulated depreciation computed by the straight-line method over the estimated lives of the respective assets as follows: Buildings, structure and improvements 2 to 40 years Buses 2 to 12 years Shop and garage equipment 2 to 10 years Office equipment and furnishings 2 to 10 years (e) Revenue Recognition Passenger fares and advertising are recorded as revenue at the time of sale. Rental and parking income are recorded on the accrual basis. (n Accounts Receivable Accounts receivable are recorded at the invoiced amount and do not bear interest. The Company does not record an allowance for existing accounts receivable based on historical experience. Account balances are charged off after all means of collection have been exhausted and the potential for recovery is considered remote. (g) Compensated Absences Company employees are granted vacation leave in varying amounts. In the event of termination, an employee is reimbursed for accumulated vacation in full. Accumulated vacation is recorded as an expense and liability as the benefits accrue to employees. Sick leave is recorded as an expense as the employee utilizes it. In accordance with GAAP, the liability calculations include an accrual at the current rate of pay and ancillary salary-related payments associated with its ultimate liquidation. (la) Operating Revenues and Expenses Operating revenues consist of charges for passenger fares. Operating expenses include costs of services provided, including personnel costs, purchased services, utilities, materials and supplies, insurance and depreciation. All other revenues and expenses, with the exception of capital contributions, are classified as nonoperating revenues and expenses. (i) Deferred Compensation Plan Company employees participate in the Southwestern Virginia Transit Management Company, Inc. Retirement Plan (the Plan), which is a deferred compensation plan and trust covering all eligible employees of the Company. Under the terms of the Plan agreement, all full-time employees are required to participate in the Plan upon completion of their probationary employment period, which is 90 days from date of hire for all employees. Southwest Virginia Transit Management Company, 15 (Continued) GREATER ROANOKE TRANSIT COMPANY— TRANSIT OPERATIONS (A Component Unit of the City of Roanoke,Virginia) Notes to Financial Statements June 30, 2013 and 2012 Inc. is the trustee of the Plan and the Plan is administered by the Reliance Trust Company. Participants contribute to the Plan through both mandatory and voluntary payroll deductions. Participants are required to contribute a minimum of 3% of annual compensation. Participants may elect to defer up to 100% of their pretax compensation not to exceed the IRS limitations on net contributions. The Company can make contributions at its discretion. The Plan qualifies as a government plan under Section 457 of the Internal Revenue Code. This qualification exempts the Plan from the Employee Retirement Income Security Act (ERISA) and the Department of Labor (DOL) regulations. Charges to operations under the Plan are based on 3% of union and salary participants' eligible payroll. The Company increased its contribution percentage from 2.5%to 3.0% of eligible payroll for union participants,effective July 1,2004. 0) Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities and net position at the date of the financial statements and the reported amounts of revenues, expenses and changes in net position during the reporting period.Actual results could differ from these estimates. (k) New Accounting Pronouncement In June 2011, the Governmental Accounting Standards Board (GASB) issued Statement No. 63, Financial Reporting of Deferred Outflows of Resources, Deferred Inflows of Resources, and Net Position (GASB Statement No. 63). This Statement provides financial reporting guidance for deferred outflows of resources and deferred inflows of resources. Concepts Statement No. 4, Elements of Financial Statements, introduced and defined those elements as a consumption of net assets by the government that is applicable to a future reporting period, and an acquisition of net assets by the government that is applicable to a future reporting period, respectively. The Company retroactively implemented the provisions of GASB Statement No. 63 in fiscal year 2013 by replacing the previous term "net assets" with the new term "net position" in the accompanying financial statements. (2) Deposits and Investments The Company may invest in the following approved investment vehicles: • Direct obligations of the federal government backed by the full faith and credit of the United States; • Obligations of the Commonwealth of Virginia, including stocks, bonds and other evidences of indebtedness of the Commonwealth of Virginia, and those unconditionally guaranteed as to the payment of principal and interest by the Commonwealth of Virginia; • Obligations of Virginia counties, cities, etc. (subject to certain restrictions); • Obligations of the International Bank, Asian Development Bank and African Development Bank; • Domestic bankers' acceptances from institutions with a rating of B/C or better in the Keefe, Bruyette &Woods, Inc. ratings; 16 (Continued) GREATER ROANOKE TRANSIT COMPANY– TRANSIT OPERATIONS (A Component Unit of the City of Roanoke, Virginia) Notes to Financial Statements June 30,2013 and 2012 • Commercial paper with a maturity of two-hundred seventy (270)days or less with a Moody's rating of prime 1 and Standard&Poor's rating of A-1,with the issuing corporation having a net worth of at least fifty million dollars; the net income of the issuing corporation, or its guarantor, has averaged three million dollars per year of the previous five years; and all existing senior bonded indebtedness of the issuer, or its guarantor, is rated "A" or better by Moody's Investor Services, Inc., and Standard& Poor's, Inc.; • Corporate notes with a rating of at least Aa by Moody's Investors Service, Inc. and a rating of at least AA by Standard and Poor's,Inc. and a maturity of no more than five(5)years; • Money market funds; • Demand and savings deposits; and • Time deposits, certificates of deposit and repurchase agreements. All cash and cash equivalents are held by financial institutions in the name of the Company. At June 30, 2013, all cash and cash equivalents were fully collateralized pursuant to agreements with all participating financial institutions to pledge assets on a pooled basis to secure public deposits according to the Virginia Security for Public Deposits Act Regulations of the Code of Virginia. (3) Capital Grant Funds (a) Capital Expenditures Capital asset purchases have been funded primarily under FTA capital grants to the Company. Additional matching requirements were met by the Commonwealth of Virginia, City of Roanoke, and the New River Valley Metropolitan Planning Organization. Capital grant funds received (cash basis),beginning June 15, 2000, and capital grant funds outstanding at June 30,2013 are as follows: Capital Cumulative Outstanding grant funds capital capital received grant funds grant 2013 received amount FTA $ 460,819 18,720,016 2,067,228 Commonwealth of Virginia 33,763 3,593,383 198,451 City of Roanoke — 166,982 New River Valley MPO 76,750 _ — $ 494,582 22,557,131 2,265,679 (b) Operations The Company receives operating assistance from the FTA, Commonwealth of Virginia, City of Roanoke, City of Salem, Town of Vinton, and New River Valley Metropolitan Planning Organization. During fiscal years 2013 and 2012, the Company also received operating assistance from the Carilion Foundation and Downtown Roanoke, Inc. for its Star Line trolley bus service. 17 (Continued) GREATER ROANOKE TRANSIT COMPANY— TRANSIT OPERATIONS (A Component Unit of the City of Roanoke,Virginia) Notes to Financial Statements June 30, 2013 and 2012 (4) Supplies and Materials As of June 30,2013 and 2012, supplies and materials consisted of the following: 2013 2012 Parts $ 440,131 419,203 Diesel fuel 19,625 28,375 Lubricating oil 8,299 11,099 $ 468,055 458,677 Supplies and materials are valued on the weighted average cost basis. (5) Capital Assets The following is a summary of the changes in capital assets, net for the years ended June 30, 2013 and 2012: Balances Balances June 30, June 30, 2012 Increases Decreases 2013 Capital assets not being depreciated: Land $ 720,724 720,724 Other capital assets being depreciated: Building,structures and improvements 10,655,037 39,242 — 10,694,279 Buses 14,752,168 14,752,168 Shop and garage equipment 2,573,802 370,531 2,944,333 Office equipment and furnishings 740,246 31,035 — 771,281 Accumulated depreciation (16,914,948) (2,136,466) (19,051,414) Net capital assets being depreciated 11,806,305 (1,695,658) — 10,110,647 Capital assets,net $ 12,527,029 (1,695,658) — 10,831,371 18 (Continued) GREATER ROANOKE TRANSIT COMPANY— TRANSIT OPERATIONS (A Component Unit of the City of Roanoke, Virginia) Notes to Financial Statements June 30, 2013 and 2012 Balances Balances June 30, June 30, 2011 Increases Decreases 2012 Capital assets not being depreciated: Land $ 720,724 720,724 Other capital assets being depreciated: Building, structures and improvements 10,562,254 92,783 10,655,037 Buses 14,745,275 6,893 14,752,168 Shop and garage equipment 2,698,316 301,503 (426,017) 2,573,802 Office equipment and furnishings 727,374 12,872 — 740,246 Accumulated depreciation (15,404,160) (1,936,805) 426,017 (16,914,948) Net capital assets being depreciated 13,329,059 (1,522,754) — 11,806,305 Capital assets,net $ 14,049,783 (1,522,754) 12,527,029 (6) Deferred Compensation Plan The Company has a deferred compensation plan(see note 10)) covering all hourly and salaried employees. The Company made contributions to the deferred compensation plan in the amount of$106,913 in fiscal year 2013 and$105,250 in fiscal year 2012. (7) Other Liabilities Included in other liabilities at June 30, 2013 and 2012 is deferred revenue of $194,812 and $149,088, respectively. (8) Commitments and Contingent Liabilities Under the provisions of a management contract with First Group America Company (dba First Transit, Inc.), which became effective on March 1, 2010 and expires on June 30, 2015, the Company pays a monthly fee of $21,866 for management services. In December 2012, First Transit agreed to share a portion of GRTC's fiscal year 2012 Loss before capital contributions (excluding Depreciation) of$98,520 in the amount of$10,000. This amount shall be deducted from its monthly invoice in the amount of$500 per month. Total fees paid for the years ended June 30, 2013 and 2012 were $258,900 and $262,400, respectively. Certain assets acquired with FTA grants must be kept in service for a specified time period as a requirement of the grants. If these assets are removed from service, the Company must reimburse FTA for 19 (Continued) GREATER ROANOKE TRANSIT COMPANY— TRANSIT OPERATIONS (A Component Unit of the City of Roanoke,Virginia) Notes to Financial Statements June 30, 2013 and 2012 up to 80% of their fair market value on the date of disposition. Capital assets, net, approximating $10.1 million at June 30,2013 are subject to these grant requirements. The Company has agreements with the City of Salem and Town of Vinton to provide bus service to each of these areas which may be terminated by either party upon written notice of twelve months and six months, respectively. The localities reimburse the Company for 75% of the net operating costs based upon passenger counts and service miles. The Company is the lessor of space in the Intermodal Transportation Center in downtown Roanoke. Rental income for the years ended June 30, 2013 and 2012 totaled $60,936 and $109,347, respectively. Future minimum rental receipts under leases with original terms in excess of one year are as follows: Years ending June 30: 2014 $ 56,980 2015 56,980 2016 57,259 2017 57,816 2018 25,102 $ 254,137 The Company is the lessee in an agreement with a tire manufacturer for the rental of bus tires. The agreement became effective December 1, 2011 and ends November 30, 2016. It specifies a base rate per tire mile, which adjusts each year. The Company was previously in a similar tire rental lease agreement with a tire manufacturer that became effective November 1, 2007 and expired on November 1, 2010. This agreement included an option to incur rent expense during the run-out period until the tires reached the minimum tread wear pursuant to the agreement. The Company exercised this option on November 1, 2010. For the years ended June 30, 2013 and 2012, rental expense for tires approximated $60,227 and $56,600, respectively. The Company is exposed to various risks of loss such as theft of, damage to, and destruction of assets, injuries to employees, and natural disasters. The Company carries commercial insurance for their risks. There have been no significant reductions in insurance coverage from coverage in the prior year, and sealed claims have not exceeded the amount of insurance coverage in any of the past three fiscal years. Grants are subject to audit to determine compliance with the grant requirements. As a result of the audit performed over federal expenditures for the fiscal year ended June 30, 2008 and completed in March 2009, it was determined that the Company failed to comply with certain federal procurement requirements in connection with the purchase of certain office equipment and furnishings resulting in known questioned costs of$178,641 reimbursed by the FTA under two federal grant agreements and $27,616 reimbursed by the Virginia Department of Rail and Public Transportation (DRPT)under the state matching portion of the grant agreements. Total expenditures under the grant agreements were approximately$223,137. 20 (Continued) GREATER ROANOKE TRANSIT COMPANY— TRANSIT OPERATIONS (A Component Unit of the City of Roanoke,Virginia) Notes to Financial Statements June 30, 2013 and 2012 First Transit, Inc. has agreed to reimburse the Company for any amounts that may be required to be reimbursed to the cognizant agencies. The FTA requested reimbursement of$178,641 which was paid by First Transit, Inc. in June 2010. The DRPT performed an audit in December 2011 that was finalized in November 2012. The audit requires the Company to reimburse the DRPT $29,313. This amount has been recorded as a liability with an offsetting receivable as First Transit, Inc. will reimburse the Company for this amount. This amount will be reimbursed upon receipt of a formal notice from the DRPT. As a result of the audit performed over federal expenditures for the year ended June 30, 2009, it was determined that certain expenditures related to fuel purchases were in violation of the City's procurement policies to obtain faxed quotes from vendors. The amount of the federal funds reimbursed for the fuel purchases approximated $322,000. In addition, it was also noted that the Company's Request for Proposal (RFP) for health insurance did not include the necessary clauses per the FTA's grant compliance requirements and that the Company, nor the broker acting as agent for the Company, maintained the necessary information in the procurement file related to the awarding of the contract. Approximately $221,500 was reimbursed with federal funds for health insurance for the year ended June 30, 2009. Further, as a result of the June 30,2010 audit over federal expenditures, it was noted that the Company did not properly publicize its health insurance RFP or include a section in the RFP regarding verification of suspension and debarment. The finding also asserted that the Company failed to notify the vendor awarded the contract the total dollar amount of the award and the percentage expected to be reimbursed with federal funds. Approximately $261,000 was reimbursed with federal funds for health insurance for the year ended June 30, 2010. As a result of the fuel and health insurance matters noted above, the Company received a demand notice for $805,003 from the FTA in December 2011. The FTA asserts as the basis for the claim that the Company's purchases of health insurance and fuel failed to comply with federal and City procurement requirements in fiscal years 2009 and 2010. The Company responded to the demand notice in February 2012, seeking an administrative review of the FTA claim, both as to its validity and as to its amount. The Company has not received a response from the FTA as of the date of the financial statement issuance. If the claim stands, the Company may also be subject to a claim from DRPT for the match it provided for the expenditures, which approximated $376,000. The Company has not accrued a liability for the demand notice as of June 30, 2013 due to uncertainty as to the probability about whether the FTA will ultimately enforce the notice after completion of the administrative review process. The Company is unaware of any pending litigation or other contingencies that would have a material adverse effect on the financial condition or liquidity of the Company. 21 KPMGKPMG LLP Suite 1010 10 S.Jefferson Street Roanoke,VA 24011-1331 Independent Auditors' Report on Internal Control over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards The Board of Directors Greater Roanoke Transit Company: We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States, the financial statements of Greater Roanoke Transit Company—Transit Operations (the Company), a discretely presented component unit of the City of Roanoke, which comprise the statements of net position as of June 30, 2013 and 2012, and the related statements of revenues, expenses and changes in net position, and cash flows for the years then ended, and the related notes to the financial statements,and have issued our report thereon dated October 25, 2013. Internal Control over Financial Reporting In planning and performing our audit of the financial statements, we considered the Company's internal control over financial reporting (internal control) to determine the audit procedures that are appropriate in the circumstances for the purpose of expressing our opinion on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control. Accordingly, we do not express an opinion on the effectiveness of the Company's internal control. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity's financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency,or a combination of deficiencies, in internal control that is less severe than a material weakness,yet important enough to merit attention by those charged with governance. Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies and therefore, material weaknesses or significant deficiencies may exist that were not identified. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified. Compliance and Other Matters As part of obtaining reasonable assurance about whether the Company's financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The 22 KPMG LLP is a Delaware limited IiabFhy partnership, the U.S.member firm of KPMG International Cooperative "KPMG International I,a Swiss entity results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. Purpose of this Report The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the Company's internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the Company's internal control and compliance. Accordingly,this communication is not suitable for any other purpose. October 25,2013 23