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Home My WebLink About07/18/16 - 11/20/17GREATER ROANOKE TRANSIT COMPANY BOARD OF DIRECTORS July 14, 2016 Members of the Greater Roanoke Transit Company Board of Directors Dear Members of the Board: The regular meeting of the Greater Roanoke Transit Company Board of Directors will be held on Monday, July 18, 2016, 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, U-�0, r��h�z, Stephanie M. Moon Reyn Secretary PC: Christopher P. Morrill, Vice President of Operations, GRTC Daniel J. Callaghan, General Counsel, GRTC Barbara A. Dameron, Treasurer, GRTC Drew Harmon, Municipal Auditor Sherman M. Stovall, Assistant Vice President of Operations, GRTC Laura M. Carini, Assistant General Counsel, GRTC Carl L. Palmer, General Manager, Valley Metro Kevin Price, Assistant General Manager, Valley Metro L \CLERKIDATAIsmmoon \GRTC,16Wuly 18, 2016 Meeting Notice.doc GREATER ROANOKE TRANSIT COMPANY BOARD OF DIRECTORS July 18, 2016 1:00 P.M. EOC CONFERENCE ROOM ROOM 159 AGENDA Call to Order -- Roll Call. Directors Bestpitch and Mills were absent. Daniel J. Callaghan, General Counsel, served as the Presiding Officer. 2. Approval of Minutes: Regular meeting of GRTC held on Monday, June 20, 2016 Without objection, Minutes were approved as recorded. 3. Reports of Officers: a. Secretary: Election of Officers Following were appointed to serve as the Board of Directors for terms of one year, each, ending June 30, 2017: Council Member William D. Bestpitch, President Vice -Mayor Anita James Price, Vice - President City Manager as Vice - President of Operations Assistant City Manager for Operations as Assistant Vice - President of Operations City Clerk as Secretary Deputy City Clerk as Assistant Secretary Director of Finance as Treasurer City Attorney as General Counsel b. General Manager: Management Update for July 18, 2016: • Planning and Special Projects • Roanoke Valley Transit Vision Plan (RVTVP) • Vehicle Maintenance Expansion Facility L \CLERK \DATA\.smmoon \GRTC.16 \July 18, 2016 Action Agenda.doc • Other Updates • Procurement System Review • Task Order Contract • Wellness Program • Fiscal 2016 Ridership • On Time Performance Without objection, Management Update was received and filed. 2. Authorization to Withdraw from the Virginia Transit Liability Pool Adopted a Resolution (4 -0) 3. Adopted a Resolution to adopt the Member Agreement to join the Virginia Association of Counties Group Self Insurance Risk Pool. 4. Other Business: a. Presentation to Management of the Greater Roanoke Transit Company. Received and filed. The General Manager gave a brief update on the status of the Wal -Mart Shelter. 5. Next Meeting: September 19, 2016 at 1:00 p.m., EOC Conference Room 6. Adjournment. 1:37 p.m. L \CLERK \DATA\smmoco \GRTC.16 \July 18 , 2016 Action Agenda don 1%. GREATER ROANOKE TRANSIT COMPANY BOARD OF DIRECTORS July 18, 2016 Members of the GRTC Board of Directors Roanoke, Virginia Dear 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 that are currently serving David B. Trinkle, President William D. Bestpitch, Vice - President Christopher P. Morrill, Vice - President of Operations Sherman M. Stovall, Assistant Vice- President of Operations Stephanie M. Moon Reynolds, Secretary Cecelia F. McCoy, Assistant Secretary Barbara A. Dameron, Treasurer Daniel J. Callaghan, Registered Agent and General Counsel Sincerely, Stephanie M. Moon Reyn s Secretary PC: Christopher P. Morrill, Vice President of Operations, GRTC Daniel J. Callaghan, General Counsel, GRTC Barbara A. Dameron, Treasurer, GRTC Troy A. Harmon, Municipal Auditor Sherman M. Stovall, Assistant Vice President of Operations, GRTC Laura M. Carini, Assistant General Counsel, GRTC Carl L. Palmer, General Manager, Valley Metro, P. O. Box 13247, Roanoke, Virginia 24032 Kevin Price, Assistant General Manager, Valley Metro, P. O. Box 13247, Roanoke, Virginia 24032 L CLERK \DATA \smmoon \GRTG, 2015G%tion of Offlcemdoc GREATER ROANOKE TRANSIT COMPANY BOARD OF DIRECTORS July 22, 2016 The Honorable William D. Bestpitch Council Member Roanoke, Virginia Dear Council Member Bestpitch: At a regular meeting of the Greater Roanoke Transit Company Board of Directors held on Monday, July 18, 2016, you were appointed as the President for a term of office ending June 30, 2017. Enclosed you will find a Certificate of your appointment. Sincerely, n Stephanie M. Moon Reynol MM Secretary Enclosure PC: Carl L. Palmer, General Manager, Valley Metro, P.O. Box 13247, Roanoke, Virginia 24032 Sherman M. Stovall, Assistant Vice - President for Operations, GRTC Daniel J. Callaghan, General Counsel, GRTC COMMONWEALTH OF VIRGINIA To -wit: CITY OF ROANOKE I, Stephanie M. Moon Reynolds, Secretary, and as such Secretary of the Greater Roanoke Transit Company Board and keeper of the records thereof, do hereby certify that at a regular meeting of the Greater Roanoke Transit Company Board of Directors held on the eighteenth day of July 2016, WILLIAM D. BESTPITCH was appointed as the President for a term of office ending June 30, 2017. Given under my hand and the Seal of the Greater Roanoke Transit Company this twenty- second day of July 2016. P Secretary GREATER ROANOKE TRANSIT COMPANY BOARD OF DIRECTORS July 22, 2016 The Honorable Anita James Price Vice -Mayor Roanoke, Virginia Dear Vice -Mayor Price: At a regular meeting of the Greater Roanoke Transit Company Board of Directors held on Monday, July 18, 2016, you were appointed as the Vice - President for a term ending June 30, 2017. Enclosed you will find a Certificate of your appointment. Sincerely, _ II Stephanie M. Moon Remolds, M& Secretary Enclosures PC: Carl L. Palmer, General Manager, Valley Metro, P.O. Box 13247, Roanoke, Virginia 24032 Sherman M. Stovall, Assistant Vice - President for Operations Daniel J. Callaghan, General Counsel COMMONWEALTH OF VIRGINIA To -wit: CITY OF ROANOKE I, Stephanie M. Moon Reynolds, Secretary, and as such Secretary of the Greater Roanoke Transit Company Board and keeper of the records thereof, do hereby certify that at a regular meeting of the Greater Roanoke Transit Company Board of Directors held on the eighteenth day of July 2016, ANITA JAMES PRICE was appointed as the Vice - President for a term of office ending June 30, 2017. Given under my hand and the Seal of the Greater Roanoke Transit Company this twenty- second day of July 2016. r` P Secretary GREATER ROANOKE TRANSIT COMPANY BOARD OF DIRECTORS July 22, 2016 Daniel J. Callaghan City Attorney Roanoke, Virginia Dear Mr. Callaghan: At a regular meeting of the Greater Roanoke Transit Company Board of Directors held on Monday, July 18, 2016, as the City Attorney, you were reappointed as the General Counsel and Registered Agent for a term of office ending June 30, 2017. 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, � I Stephanie M. Moon ynolds�MMC Secretary Enclosures pc: Carl L. Palmer, General Manager, Valley Metro, P.O. Box 13247, Roanoke, Virginia 24032 Sherman M. Stovall, Assistant Vice - President for Operations, GRTC Laura Carini, Assistant General Counsel, GRTC COMMONWEALTH OF VIRGINIA ) To -wit, CITY OF ROANOKE ) I, Stephanie M. Moon Reynolds, Secretary, and as such Secretary of the Greater Roanoke Transit Company Board and keeper of the records thereof, do hereby certify that at a regular meeting of the Greater Roanoke Transit Company held on the eighteenth day of July 2016, the City Attorney (Daniel J. Callaghan) was reappointed as the General Counsel and Registered Agent for a term of office ending June 30, 2017. Given under my hand and the Seal of the Greater Roanoke Transit Company this twenty- second day of July 2016. T n Secretary �U Oath or Affirmation of Office Commonwealth of Virginia, City of Roanoke, to -wit: I, Daniel J. Callaghan, City Attorney, 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 the General Counsel of the Greater Roanoke Transit Company Board of Directors for a term of office ending June 30, 2017, according to the best of my ability. So help me God. OMAN MIMEM The foregoing oath of office was taken, sworn to, and subscribed before me by Daniel J. Callaghan this day of (2016. Brenda S. Hamilton, Clerk gfthe Circuit Court i, evrl7 /1(�� Cr GREATER ROANOKE TRANSIT COMPANY BOARD OF DIRECTORS July 22, 2016 Christopher P. Morrill City Manager Roanoke, Virginia Dear Mr. Morrill- At a regular meeting of the Greater Roanoke Transit Company, Board of Directors held on Monday, July 18, 2016, as the City Manager, you were reappointed as the Vice - President of Operations for a term of office ending June 30, 2017. 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, / II Stephanie M. Moon eynol MC Secretary Enclosures PC: Carl L. Palmer, General Manager, Valley Metro, P.O. Box 13247, Roanoke, Virginia 24032 Sherman M. Stovall, Assistant Vice - President for Operations Daniel J. Callaghan, General Counsel, GRTC COMMONWEALTH OF VIRGINIA ) To -wit: CITY OF ROANOKE ) I, Stephanie M. Moon Reynolds, Secretary, and as such Secretary of the Greater Roanoke Transit Company Board and keeper of the records thereof, do hereby certify that at a regular meeting of the Greater Roanoke Transit Company Board of Directors held on the eighteenth day of July 2016, the City Manager (Christopher P. Morrill) was reappointed as the Vice - President of Operations for a term of office ending June 30, 2017. Given under my hand and the Seal of the Greater Roanoke Transit Company this twenty- second day of July 2016. A� h Secretary i U ILFF H2 3� Oath or Affirmation of Office Commonwealth of Virginia, City of Roanoke, to -wit: I, Christopher P. Morrill, City Manager, 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 the Vice - President of Operations for a term of office ending June 30, 2017, according to the best of my ability. So help me God. //� i ISTOPHER P. MORRILL The foregoing oath of office was ta►►►�kke��.�n��,,,� ��sworn ��nt�to, and subscribed before me by Christopher P. Morrill thi� day of J 2016. S. Hamilton, Clerk of the Circuit Court GREATER ROANOKE TRANSIT COMPANY BOARD OF DIRECTORS July 22, 2016 Sherman M. Stovall Assistant City Manager for Operations Roanoke, Virginia Dear Mr. Stovall: At a regular meeting of the Greater Roanoke Transit Company Board of Directors held on Monday, July 18, 2016, as Assistant City Manager for Operations, you were reappointed as the Assistant Vice - President of Operations for a term of office ending June 30, 2017. 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." I S�incerely, kxW ` x 4,AX i n1 )- � Stephanie M. Moon Reynolds, MMC Secretary Enclosures PC: Carl L. Palmer, General Manager, Valley Metro, P.O. Box 13247, Roanoke, Virginia 24032 Daniel J. Callaghan, General Counsel, GRTC COMMONWEALTH OF VIRGINIA ) To -wit: CITY OF ROANOKE ) I, Stephanie M. Moon Reynolds, Secretary, and as such Secretary of the Greater Roanoke Transit Company and keeper of the records thereof, do hereby certify that at a regular meeting of the Greater Roanoke Transit Company Board of Director held on the eighteenth day of July 2016, the Assistant City Manager for Operations (Sherman M. Stovall) was reappointed as the Assistant Vice - President of Operations for a term of office ending June 30, 2017. Given under my hand and the Seal of the Greater Roanoke Transit Company this twenty- second day of July 2016. 14 Secretary Oath or Affirmation of Office Commonwealth of Virginia, City of Roanoke, to -wit: I, Sherman M. Stovall, Assistant City Manager for Operations, 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 the Assistant Vice - President of Operations of the Greater Roanoke Transit Company Board of Directors for a term of office ending June 30, 2017, according to the best of my ability. So help me God. SHERMAN M. STOVALL The foregoing oath of office was taken, sworn to, and subscribed before me by Sherman M. Stovall this day of _LLPE 2016. Brenda S. Hamilton, Clerk of the Circuit Court GREATER ROANOKE TRANSIT COMPANY BOARD OF DIRECTORS July 22, 2016 Barbara A. Dameron Director of Finance Roanoke, Virginia Dear Ms. Dameron: At a regular meeting of the Greater Roanoke Transit Company Board of Directors held on Monday, July 18, 2016, as the Director of Finance, you were reappointed as the Treasurer for a one year term ending June 30, 2017. 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." Sincerely, Stephanie M. Moon Reynolds, MMC Secretary Enclosures pc: Carl L. Palmer, General Manager, Valley Metro, P.O. Box 13247, Roanoke, Virginia 24032 Sherman M. Stovall, Assistant Vice - President for Operations, GRTC Daniel J. Callaghan, General Counsel, GRTC COMMONWEALTH OF VIRGINIA To -wit: CITY OF ROANOKE I, Stephanie M. Moon Reynolds, Secretary, and as such Secretary of the Greater Roanoke Transit Company Board and keeper of the records thereof, do hereby certify that at a regular meeting of the Greater Roanoke Transit Company Board of Directors held on the eighteenth day of July 2016, the Director of Finance (Barbara A. Dameron) was reappointed as the Treasurer for a term of office ending June 30, 2017. Given under my hand and the Seal of the Greater Roanoke Transit Company this twenty- second day of July 2016. Secretary rvlb�� (l�f Oath or Affirmation of Office Commonwealth of Virginia, City of Roanoke, to -wit: I, Barbara A. Dameron, Director of Finance, 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 the Treasurer of the Greater Roanoke Transit Company Board of Directors for a term of office ending June 30, 2017, according to the best of my ability. So help me God. �,llr Ce � � le BARBARAA. DAMERON The foregoing oath of office was taken, swoo�mm to, and subscribed before me by s" da Barbara A. Dameron thiy of��/,LQ,/d{. 2016. Moog GREATER ROANOKE TRANSIT COMPANY BOARD OF DIRECTORS July 22, 2016 Stephanie M. Moon Reynolds City Clerk Roanoke, Virginia Dear Ms. Moon Reynolds: At a regular meeting of the Greater Roanoke Transit Company Board of Directors held on Monday, July 18, 2016, as City Clerk, you were reappointed as the Secretary for a term of office ending June 30, 2017. 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, 6e?. ca.Ec � � Cecelia F. McCoy c- d Assistant Secretary Enclosures PC: Carl L. Palmer, General Manager, Valley Metro, P.O. Box 13247, Roanoke, Virginia 24032 Sherman M. Stovall, Assistant Vice - President for Operations Daniel J. Callaghan, General Counsel, GRTC COMMONWEALTH OF VIRGINIA To -wit: CITY OF ROANOKE I, Cecelia F. McCoy, Assistant Secretary, and as such the Assistant Secretary of the Greater Roanoke Transit Company Board and keeper of the records thereof, do hereby certify that at a regular meeting of the Greater Roanoke Transit Company Board of Directors held on the eighteenth day of July 2016, the City Clerk (Stephanie M. Moon Reynolds) was reappointed as the Secretary for a term of office ending June 30, 2017. Given under my hand and the Seal of the Greater Roanoke Transit Company this twenty- second day of July 2016. Assistant Secretary Oath or Affirmation of Office Commonwealth of Virginia, City of Roanoke, to -wit: I, Stephanie M. Moon Reynolds, City Clerk, 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 the Secretary of the Greater Roanoke Transit Company Board of Directors for a term of office ending June 30, 2017, according to the best of my ability. So help me God. STEPHANIE M. -MOON JZEYNOLDS The foregoing oath of office was taken, sworn�to, and subscribed before me by Stephanie M. Moon Reynoldsthis,c<- .day ofh,; T A L2016. Brenda S. Hamilton, Clerk of the Circuit Court By /, t %��':%'��.,/ , Clerk i' GREATER ROANOKE TRANSIT COMPANY BOARD OF DIRECTORS July 22, 2016 Cecelia F. McCoy Deputy City Clerk Roanoke, Virginia Dear Ms. McCoy: At a regular meeting of the Greater Roanoke Transit Company Board of Directors held on Monday, July 18, 2016, as the Deputy City Clerk, you were reappointed as the Assistant Secretary for a term ending June 30, 2017. 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." Sincerely, Stephanie M. Moon Reynolds, MIMIC Secretary Enclosures pc: Carl L. Palmer, General Manager, Valley Metro, P.O. Box 13247, Roanoke, Virginia 24032 Sherman M. Stovall, Assistant Vice - President for Operations Daniel J. Callaghan, General Counsel, GRTC COMMONWEALTH OF VIRGINIA ) To -wit: CITY OF ROANOKE ) I, Stephanie M. Moon Reynolds, Secretary, and as such Secretary of the Greater Roanoke Transit Company Board and keeper of the records thereof, do hereby certify that at a regular meeting of the Greater Roanoke Transit Company Board of Directors held on the eighteenth day of July 2016, the Deputy City Clerk (Cecelia F. McCoy) was reappointed as the Assistant Secretary for a term of office ending June 30, 2017. Given under my hand and the Seal of the Greater Roanoke Transit Company this twenty- second day of July 2016. Secretary Oath or Affirmation of Office Commonwealth of Virginia, City of Roanoke, to -wit: I, Cecelia F. McCoy, Deputy City Clerk, 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 the Assistant Secretary of the Greater Roanoke Transit Company Board of Directors for a term of office ending June 30, 2017, according to the best of my ability. So help me God. �EC LIA F. MCCOY j4, The foregoing oath of office was taken, sworn to, and subscribed before me by Cecelia F. McCoy this .3'S day of 2016. Brenda S. Hamilton, Clerk of the Circuit Court I lob va��ey 1� M Greater Roanoke Transit Company Board of Directors Meeting Management Update July 18, 2016 Planning and Special Projects Roanoke Valley Transit Vision Plan (RVTVP) The latest draft of the RVTVP is currently under review by Roanoke County, a major stakeholder. Once the review is complete with comment, it is expected that the Plan in its final form will be recommended by the Planning Commission's Technical Transportation Committee (TTC) to the Transportation Policy Board (TPO) for adoption. Vehicle Maintenance Expansion Facility The schematic design phase for space programming and utilities is drawing to a close. Spectrum of Roanoke, GRTC's architect and engineering (A &E) firm, met with staff on July 14, 2016 to present and explain the designs; staff is in the process of reviewing the designs in detail and forwarding comments to Spectrum. Inclusive of this phase and the geotechnical phase, the construction specification documents are approximately 40% complete. Other Updates Procurement System Review In May 2013, GRTC successfully underwent an on -site Federal Transit Administration (FTA) Procurement System Review (PSR). In May 2014, GRTC satisfied its corrective action plan requirements and the review was officially closed by FTA. In February 2016, FTA advised GRTC that an on -site "follow -up" PSR will be conducted. The PSR is scheduled to be conducted during the week of August 8, 2016. Task Order Contract GRTC has an increasing need for general architecture and engineering (A &E) support services on an "on- call" task order retainer basis. The need for such services will focus on the following tasks: 1) Site analysis, conceptual and preliminary design; 2) Final design specifications for contract bidding; 3) Bid review and contractor selection, 4) Construction oversight and administration Primarily, these tasks will focus on the following types of projects. 1) Bus stop shelters 2) Park and Rides 3) Dedicated bus rights -of -way 4) Structural space reallocation and rehabilitation Greater Roanoke Transit Company PO Box 13247 • Roanoke, Virginia 24032 • Phone: 540.982.0305 • Fax:540.982.2703 • www.valleymetro.com Staff has solicited quotes from qualified A &E firms, with five (5) firms responding. Staff expects to select a firm and award a contract for services by mid - August, 2016. Wellness Program On June 2, 2016, GRTC awarded a contract to Carilion Wellness to provide a health and wellness program for Valley Metro employees. The focus of the program is to assist employees with monitoring their vital signs such as blood pressure and sugar levels as well as offer body composition analysis and dietary and physical exercise guidance. Over time, management hopes to improve the overall health of employees, reduce absenteeism and related overtime costs due to ill health Management expects to execute the contract with Carilion by August 1, 2016. The first year of the contract will cost $1,500. There will be four (4) one year renewals at GRTC's sole discretion with a guarantee of no more than a 2% increase per annual renewal. Some of the programs and services that will be available to employees include a speaker's bureau on health and wellness, individualized fitness planning, one -on -one training sessions, and "InBody" assessments such as muscle mass to fat mass ratios and body water analysis. Fiscal 2016 Ridership Overall, ridership for FY 2016 year to date as of May 2016 is 3% below FY 2015. The ridership percentage change for May year to date for FY16 compared to May year to date for FY15 for each GRTC service type is detailed below. Fixed Route (2.5 %) Smart Way (12.6 %) Smart Way Connector +1.7% Star Line Trolley (11 %) STAR (1.3 %) On Time Performance On -time performance is a measure of service reliability. A bus is considered on -time if it is between 1 and 5 minutes late. On -time performance is measured for each trip using the Campbell Court Transfer Center as the point of origin. As of this update, on -time performance is still holding at the October 2015 rate of 99.50% A d, er General Manager Copy. Vice President of Operations Assistant Vice President of Operations Treasurer Secretary GRTC General Counsel Municipal Auditor own ■GRi GREATER ROANOKE TRANSIT COMPANY BOARD OF DIRECTORS July 25, 2016 Carl L. Palmer, General Manager Valley Metro P. O. Box 13247 Roanoke, Virginia 24032 Dear Mr. Palmer: I am enclosing copy of a resolution authorizing Greater Roanoke Transit Company to withdraw from the Virginia Transit Liability Pool, effective July 1, 2016; authorizing certain Greater Roanoke Transit Company officials to execute any necessary documents and /or take appropriate actions that may be needed. The abovementioned resolution was adopted by the Board of Directors at its regular meeting held on Monday, July 18, 2016. Sincerely, 1 I Stephanie M. Moon Reynolds / Secretary pc: Christopher P. Morrill, Vice - President of Operations Sherman M. Stovall, Assistant Vice - President of Operations Barbara A. Dameron, Treasurer Daniel J. Callaghan, General Counsel Laura Carini, Assistant General Counsel Troy A. Harmon, Municipal Auditor Kevin Price, Assistant General Manager, Valley Metro e BOARD OF DIRECTORS OF GREATER ROANOKE TRANSIT COMPANY A RESOLUTION AUTHORIZING GREATER ROANOKE TRANSIT COMPANY TO WITHDRAW FROM THE VIRGINIA TRANSIT LIABILITY POOL, EFFECTIVE JULY I, 2016; AUTHORIZING CERTAIN GREATER ROANOKE TRANSIT COMPANY OFFICIALS TO EXECUTE ANY NECESSARY DOCUMENTS AND /OR TAKE APPROPRIATE ACTIONS THAT MAY BE NEEDED. WHEREAS, on June 16, 2003, the Greater Roanoke Transit Company ( "GRTC ") Board of Directors approved a resolution authorizing the General Manager of GRTC to enter into an agreement with the Virginia Transit Liability Pool ( "VTLP ") to purchase commercial general liability, automobile liability, and automobile physical damage insurance coverage; WHEREAS, on May 17, 2016, a GRTC staff committee and GRTC's insurance broker, Wells Fargo, completed their review of general liability proposals received in response to a request for proposals issued March 30, 2016, and the committee and broker recommended awarding a contract to the Virginia Association of Counties Group Self - Insurance Risk Pool, d/b /a VACORP; WHEREAS, on May 17, 2016, GRTC's General Manager advised VTLP of GRTC's intent to withdraw from the Pool, effective July 1, 2016; WHEREAS, on June 24, 2016, the committee and broker reaffirmed their recommendation to award the contract to VACORP; and WHEREAS, in accordance with Section I of the resolution approved by the GRTC Board of Directors on November 15, 2010 and approval of counsel, the General Manager executed a general liability insurance agreement with VACORP dated July 1, 2016. THEREFORE, BE IT RESOLVED by the Board of Directors of the Greater Roanoke Transit Company as follows: The Board expresses its concurrence to withdraw from the Virginia Transit Liability Pool, effective July I, 2016. 2. The Board 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 documents, provide additional information, and to take any necessary actions as may be needed. 3. The form of any necessary documents as referred to in this Resolution shall be approved as to form by GRTC's general counsel. pp ATTEST: Date r 01_!.✓ U Stephanie M. Moon �ynold_ ecretary 2 =ey M Greater Roanoke Transit Company Board of Directors Meeting Action Item July 18, 2016 To: William D. Bestpitch, President, and Members and Officers of the GRTC Board of Directors Subject: Authorization to Withdraw from the Virginia Transit Liability Pool Background On June 16, 2003, the GRTC Board of Directors approved a resolution authorizing the General Manager to enter into an agreementwith the Virginia Transit Liability Pool (VTLP) to purchase general liability automobile physical damage insurance. On May 17, 2016 a GRTC staff committee and GRTC's insurance broker, Wells Fargo, competed their review of general liability proposals received in response to request for proposals issued March 30, 2016. The committee and broker recommended awarding a contract to the Virginia Association of Counties Group Self- Insurance Risk Pool d /b /a VACORP in the amount of $203,302, $123,022 less than VTLP's price of $326,324 for the same level of coverage, $20 million per occurrence. On that same date, May 17, 2016, GRTC's General Manager advised VTLP of GRTC's intent to withdraw, effective July 1, 2016. Subsequently, VTLP was interviewed along with a third respondent, the Virginia Municipal League (VML), the highest bidder, at $363,437. On June 24, 2016, the committee and broker reaffirmed their recommendation to award the contract to VACORP; VTLP and VML were advised of the same. In accordance with Section 1 of the resolution approved by the GRTC Board of Directors on November 15, 2010 and approval of counsel, the General Manager executed a general liability insurance agreement with VACOPR on July 1, 2016, the effective date of coverage. VTLP has advised GRTC that since a GRTC Board resolution was required to enter into an agreement with VTLP in 2003, a resolution of concurrence approved by the GRTC Board of Directors affirming GRTC's withdrawal is also required. Greater Roanoke Transit Company PO Box 13247 • Roanoke, Virginia 24032 • Phone: 540.982.0305 • Fax:540.982.2703 • www.valleymetro.com William D. Bestpitch, President and Members of the Board of Directors Authorization to Withdraw from the Virginia Transit Liability Pool July 18, 2016 Recommendation GRTC Board of Directors express its concurrence, by resolution, to withdraw from the Virginia Transit Liability Pool, effective July 1, 2016. :=on_ n GRTC General Manager Cc: Vice President of Operations Assistant Vice President of Operations Treasurer Secretary Legal Counsel Municipal Auditor GREATER ROANOKE TRANSIT COMPANY BOARD OF DIRECTORS July 25, 2016 Carl L. Palmer, General Manager Valley Metro P. O. Box 13247 Roanoke, Virginia 24032 Dear Mr. Palmer: I am enclosing copy of a resolution to adopt the Member Agreement to join the Virginia Association of Counties Group Self Insurance Risk Pool. The abovementioned resolution was adopted by the Board of Directors at its regular meeting held on Monday, July 18, 2016. Sincerely, HA �d✓ Stephanie M. Moon Reynolds Secretary PC: Christopher P. Morrill, Vice - President of Operations Sherman M. Stovall, Assistant Vice - President of Operations Barbara A. Dameron, Treasurer Daniel J. Callaghan, General Counsel Laura Carini, Assistant General Counsel Troy A. Harmon, Municipal Auditor Kevin Price, Assistant General Manager, Valley Metro -�u BOARD OF DIRECTORS OF GREATER ROANOKE TRANSIT COMPANY RESOLUTION TO ADOPT THE MEMBER AGREEMENT TO JOIN THE VIRGINIA ASSOCIATION OF COUNTIES GROUP SELF INSURANCE RISK POOL WHEREAS, the Greater Roanoke Transit Company ( "GRTC ") desires to protect against liability claims and property losses and to provide for payment of claims or losses for which it may be liable; WHEREAS, the Virginia Association of Counties Group Self Insurance Risk Pool, aka VACoRP, has been established pursuant to Chapter 27 (§ 15.2 -2700 et seq.) and Title 15.2 of the code of Virginia; and WHEREAS, it is desirable for GRTC to join the Virginia Association of Counties Group Self Insurance Risk Pool in order to provide a method of risk sharing for liability and property losses. NOW, THEREFORE, BE IT RESOLVED that the goveming body of GRTC hereby agrees to the member agreement entitled "Member Agreement for Virginia Association of Counties Group Self Insurance Risk Pool" which creates a group fund to pay liability and workers' compensation claims and property losses of the counties and other local agencies joining the Group, we acknowledge we have received a copy of the pertinent Plan and supporting documents, and we ratify the execution, delivery, and performance of the "Member Agreement for Virginia Association of Counties Group Self Insurance Risk Pool ", executed by the General Manager of GRTC, effective July 1, 2016. BE IT FURTHER RESOLVED that in accordance with Section 1 of Resolution Authorizing the Execution of Agreements approved by the Greater Roanoke Transit Company Board of Directors on November 15, 2010, the General Manager of GRTC is authorized to execute the member agreement to join the Virginia Association of Counties Group Self Insurance Risk Pool and to act on behalf of GRTC in any other matter relative to the Group. This theoiso�+L day of July, 2016. ATTEST: Ste hanie M. Moon Rey Flds, Se r4ry MEMBER AGREEMENT FOR VIRGINIA ASSOCIATION OF COUNTIES GROUP SELF INSURANCE RISK POOL THIS AGREEMENT, made and entered into this 5f day of �, 2016, by and between all the parties who are now or may hereafler become members of the Virginia Association of Counties Group Self Insurance Risk Pont, aka VACoRP, an association of political subdivisions ( "Group "), acting by and through the Member's Supervisory Board (the "Board "), and the political subdivision which has executed this agreement, and all other political subdivisions as hereafter defined which are now, or hereafter apply to become, and upon admission will become , members of the Group and administered by the Group (individually, the "member" and collectively "members"). WITNESSETH: WHEREAS, the members of the Group have agreed to provide forjoint and cooperative action to self insure and to pool their separate risks and liabilities as authorized by the Code of Virginia; and WHEREAS, each member is a political subdivision within the definition of Section 15.2- 2701 of the Code of Virginia; and WHEREAS, pursuant to the terms of this agreement the members have organized and formed the Virginia Association of Counties Group Self Insurance Risk Pool as ajoint fund to provide the necessary anticipated financing for comprehensive general liability, personal injury and advertising injury liability, automobile liability, uninsured motorist liability, automobile physical damage, employee benefits liability, property, inland marine, and crime coverage; and WHEREAS, the Board is authorized to direct the affairs of said pool and Group; and WHEREAS, each member of the pool is required to execute an agreement whereby each member will covenant and agree to pay contributions and assessments, based upon appropriate classifications and rates, into a designated fund out of which expenses of the pool and lawful and proper claims and awards are to be paid, and further, that there will be no disbursements out of this fund by way of dividends or distribution of accumulated reserves to the respective members, except at the discretion of the Board as provided herein and the Group's by -laws; and WHEREAS, each member of the Group has elected to become a party to this agreement, to comply with the conditions set forth herein and establish self - insurance pool consistent with the provisions of Chapter 27 of Title 15.2 of the Code of Virginia (the "Act ") and regulations promulgated thereunder, and to execute such other instruments and take such other action as may be required to form and continue such pool; NOW, THEREFORE, for and in consideration of the mutual covenants, promises and obligations herein contained, which are given by the Group and each member to each other member and so accepted by each member and the Group, the parties hereto covenant and agree as follows: Membership Each member hereby agrees that the Group may admit as members of the pool only acceptable political subdivisions in the Commonwealth of Virginia or agencies thereofas defined in the Act. Subject to the provisions of the Act, and rules adopted thereunder relating to the approval of members and the Group's bylaws, the Board shall be sole judge u to whether or not an applicant shall be admitted to membership. Each member agrees that a member may, at the sole discretion ofthe Board, be terminated from membership in the pool at any time after 90 days notice in writing has been given to such member, except that a member may be terminated at any date after30 days written notice to such member for non - payment of contributions or assessments. Except as otherwise expressly provided, no liability shall accrue to the pool or to the remaining members for any liability of any terminated member arising subsequent to the date of termination specified in said notice and such terminated member shall be separately and solely responsible for any liability arising thereafter. 2. Membership Withdrawal Each member represents that its present intention is to remain in the Pool for at least three years, subject to appropriations of necessary funds by its governing body. A member may withdraw from the Pool at the end of any fiscal year upon 90 days written notice to the Board; provided, however, any member which for any reason does not remain in the Pool for at least three consecutive years shall not be entitled to receive any refunds of paid contributions or assessments nor, unless otherwise determined by the Board, any share in surplus assets of the fund. After a member has been in the Pool for three consecutive years, it may withdraw upon required notice and may be entitled to share in any surplus assets of the fund; upon such termination however, the member will not receive any refunds of paid contributions or assessments. 3. Supervisory Board: Creation, Powers, and Duties The local governments that are signatories hereto do hereby establish Virginia Association of Counties Group Self Insurance Risk Pool, hereafter called the "Pool" as a joint Risk Pool to operate a fund for Liability and Property risk sharing, hereafter referred to as the "Fund". The Pool and the Fund shall be governed by a Supervisory Board composed of nine elected or appointed officials of local governments, their Boards, commissions, agencies or authorities who are members of the Pool and who shall be elected by the governing bodies or their duly authorized representative of the members of the Pool. There are nine initial members on the effective date of this Agreement. David L. Ash, Frank A. Pleve, and R. Bryan David shall serve terms ending December 31, 2018; Peggy R. Wiley, R. Cellell Dalton, and David C. Jeck shall serve terms ending December 31, 2016; and John R. Riley, Jr., Richard C. Flom, and Brian C. Ratliff shall serve terms ending December 31, 2017. Henceforth, terms of members of the Supervisory Board shall be for three years. A member of the Supervisory Board shall continue to hold office until his successor is selected. Any vacancy shall be filled for the unexpired portion of the term by appointment by the remaining members of the Board. A member of the Supervisory Board who ceases to bean elected official or employee of local government or an entity of a local government, or whose local government entity ceases to be a member of the Group shall he deemed to vacate his seat on the Board. The Supervisory Board annually shall select a chairman from among its membership to preside for the ensuing year. A majority of the membership of the Board shall constitute a quorum thereof and any question may be decided by a majority vote. The Supervisory Board: I. Shall have general control and supervision over the affairs of the Pool and the Fund; 2. Is authorized to establish, operate and enforce administrative rules, regulations and bylaws as between the individual members of the Pool and the Pool; J. Shall establish terms and conditions of coverage within the Pool, including underwriting criteria and exclusions of coverage; 4. Shall ensure that ail claims are paid promptly; 5. Shall take all necessary precautions to safeguard the assets of the Pool; 6. Shall maintain minutes of its meeting which minutes shall delineate the areas of authority delegated by the Supervisory Board to the Administrator and to the service Agent; 7. Shall have sole responsibility to determine whether applicants for membership shall be admitted to the Pool and whether existing members shall be suspended or expelled, subject to the following limitations: a. Only governmental units, institutions, agencies, boards or commissions or authorities created by local governments in the Commonwealth of Virginia shall be eligible for membership; and It. A member may be suspended or expelled only after receiving sufficient notice pursuant to paragraph 1, of this agreement. The Supervisory Board may promulgate rules and regulations, as needed, regarding admission, suspension or expulsion of members. 8. Shall at least annually have an actuary certify the members' contributions; 9. Shall approve and monitor all loss control programs; 10. Shall execute service agreement(s) designating service agent(s) for the Pool and shall agree upon the terms of service fees to be paid to the service agent(s) and shall have sole responsibility to assess the performance of the service agent(s), to review, negotiate and give final approval to any service agreement(s) between the Pool and any service agent(s), and to have final selection of any service agent; IL Shall have authority to negotiate, execute and monitor any other contracts and agreements necessary to effectuate this Member Agreement; and 12. Shall bear sole responsibility for any dispositions out of the Fund by way of dividends or distribution, if any, of accumulated reserves to the members of the Pool. 4. Administrator; Duties of Administrator Each member authorizes the Board to enter into an agreement with the Administrator who shall be empowered to accept service of process on behalf of the Group and authorized to act and bind the Group and its members in all transactions relating to or arising out of the operation of the Pool. The Administrator shall receive such fee for its services as shall be agreed upon by the Board. The Board, in its discretion, may at any time revoke the powers of the Administrator and substitute another in the Place thereof. The Administrator is hereby appointed by each member as agent for the Group, to act directly or through a service contract with a service agent in its behalf and to execute all contracts and reports, waivers, agreements, and excess insurance or reinsurance contracts, to make or arrange for payment of claims, and all other rules and all applicable regulations as now provided or as hereafter promulgated by the Virginia Slate Corporation Commission (the "Commission "). VACo Services, Inc. is hereby designated as the initial Administrator of the Group and its Fund. The Administrator shall supervise the service agent(s). The Administrator shall deposit to the account of the Pool at any bank or banks designated by the Supervisory Board, all contributions as collected, and such monies shall be disbursed only as provided by the rules, regulations and by -laws of the Supervisory Board and the service agreement(s) with the service agent(s). The Administrator shall receive a fee which shall be negotiated from time to time by the Supervisory Board and which shall be set forth in the Agreement between the Pool and the Administrator. 5. Service Agents; Duties of Service Agents The members authorize appointment by the Board of one or more service agents for the Pool and their members, individually and collectively, subject to such agent's continued approval as a service agent by the Commission, if required. Services, which may be procured by such contracts, shall include claims administration, actuarial and accounting services, and such other matters as the Board shall deem appropriate or required for operation of the Group. The service agent may calculate all annual contributions due from the members, pay all approved items of expense as directed by the Board, service claims under the Pool against members as directed by the Board, give a monthly account ofall monies so handled, and undertake all other duties set forth in the agreement employing the service agent. For handling the administrative and servicing functions of the Pool, the service agent shall receive such fee as shall be agreed upon by the Board which shall be in consideration of all services and expenses contracted for with the Pool which services and expenses may include counseling with the Board as to safety procedures, claims handing and investigations, and arranging for reinsurance or excess insurance coverage. The service agent's books and records shall be open to inspection by the Board or its agents or designees at all reasonable times. The Board may negotiate and secure contracts with alternate or additional servicing agents, with the approval of the Commission, if required. The service agent shall be VACo Insurance Programs. b. The service agent(s), under the supervision of the Supervisory Board and the Administrator shall be generally responsible for claims administration, program development and loss control on behalf of the members. The service agent(s) shall assist the Supervisory Board in determining all contributions due the Fund, prepare for payment all approved items of expense and claims, and give a monthly accounting of all monies and claims so handled. The responsibilities and duties of the service agent(s) shall be more particularly defined and described in the service agreement(s) executed with the service agent(s). c. For performing the servicing functions of the Pool, the service agent(5) shall receive a fee, which shall be negotiated with and approved by the Supervisory Board. Such fees may be renegotiated from time to time as mutually agreed upon by the service agent(s) and the Supervisory Board. The service agents) books and records as they relate to the Pool and the Fund shall be open to inspection by the Supervisory Board and the Administrator or their agents at all reasonable limes. 6. Deposit of Funds The Board or its designee shall deposit to the account of the Pool, at any bank or banks designated by the Board, all contributions as and when collected and all other funds received from or for the Pool, and said monies shall be disbursed on as provided by (1) the rules, regulations, by -laws of the Group, and the resolutions of the Board; (2) the agreement between the Board and the service agent; and (3) this agreement. 7. Investment of Funds The Board shall have the authority to invest the funds of the Pool as permitted by State law, the Group" by -laws and the Commission's regulations. S. Bylaws, Rules and Regulations Each member of the Pool agrees to abide by the rules and regulations of the Pool and the Group and the constitution and bylaws of the Group as shall be amended or modified from time to time. In the event of any amendment, the member shall be notified promptly thereof. 9. Coverage The Pool will provide loss protection to members as provided in the coverage fors and as amended by the Board from time to time. In the event of any amendment, the member shall be notified promptly thereof. To the extent permitted by any applicable coverage certificate, the Pool will allow coverage, by endorsement, for "additional insureds" to the extent of any and all vicarious liability but not for independent negligent acts or omissions of the additional insured. N 10. Reinsurance and Excess Insurance The Board is authorized to obtain and maintain specific or aggregate reinsurance or excess insurance in such amounts and which such retentions as in its discretion are advisable, if available at cost and on terms deemed by the Board to be reasonable under the circumstances. Such reinsurance or excess insurance coverage, if any, shall be as set forth in the Group's financial plan as adopted by the Board. Such coverage may be increased or decreased in the discretion ofthe Board. The Board is also authorized and empowered to obtain and maintain other insurance, letters of credit or commitment for loans from insurance or financial institutions which in thejudgement of the Board will fumish additional security and resources for payment of claims covered by the Pool in excess of the contributions made by members. 11. Proof of Coverage At the request of a member, the Pool shall provide without unreasonable delay, to any person designated by the member, proof of coverages provided by the Pool, including any insurance or reinsurance, applicable deductible levels and the maximum liability which the pool will retain. 12. Limit of Liability The members agree that, for the payment of any claim against the Pool or the performance of any obligation of the Pool hereunder, resort shall be had solely to the assets and property of the Pool and no member, officer or Board member of the Pool or the Group and neither the Administrator nor its designees shall be liable thereof. A member of the Pool shall have no liability to the Pool, to other members of the Pool, or to any claimant against the Pool itself or another member of the Pool, except for payment of annual contributions under this agreement, reimbursement ofdeductible amounts, if any, and assessments as provided pursuant to section 15 hereof and the by -laws of the Group. 13. Payment of Claims At I claims against members, if approved by the service agent and as directed by the Board, shall be paid as follows; a. To the extent of (1) the applicable Pool's funds for each Pool year. (ii) plus any other Pool assets and reserves available and authorized by the Bound therefor, and (iii) subject to the applicable limits of coverage retained by the Pool of each member b. Covered claims in excess of the Pool's coverage limits for each Pool years shall be paid from the reinsurance or excess insurance coverage, if any, in effect for the Pool; C. All deductible amounts, retention amounts, and the amounts of any claims in excess of amounts available therefor under the provision of paragraphs a. and b. of this section 13 shall be the sole obligation of, and shall be paid by, the member liable therefor. 14. Reimbursable Deductible Each member agrees that upon the payment of any applicable deductible amount by the Pool for or on behalf of a member, that such member shall reimburse the Pool therefore within 30 days of written notice from the Pool. After the specified time, interest thereon will accrue at the rate of the highest yield on the Pool's most recent investment at that time. If the reimbursable deductible has to be collected by suit, the member agrees to pay the Pool's reasonable attorney's fees and all costs incurred in the suit. 15. Contributions and Assessments Each member agrees to pay contributions to the Pool computed in accordance with a rating plan based on reasonable assumption and certified by an actuary, approved by the Board, and as amended from time to time. The Board will notify the member at least 160 days prior to the Pool year of the amount of the contribution for that Pool year. If less than 120 days notice is provided, the period for withdrawal as provided in section 2 shall be reduced on a pro -rata basis. Each member agrees that the annual contributions shall be payable in full in advance of coverage unless the Board in its discretion shall determine otherwise. Such contributions are deemed earned by the Pool when received and are not subject to refund unless otherwise determined by the Board. Whenever the Supervisory Board and the State Corporation Commission determine that the fund account is actuarially insufficient, when considering pool assets and reserves to cover known claims, both reported and unreported, the Board shall make an assessment of the members of the Pool. Such assessment shall be paid within 90 days. In the event of the pool's deficit, the Board may adopt, following any required approval by the commission, a plan it deems equitable for the elimination of such deficit, including but not limited to the assessment of any members in the proportion which the contribution of each bears to the total contributions of all members in the year in which such deficit occurs. A member is obligated to pay any assessment which applies to the pool year in which it was a member. Such assessment may be made after the end of the Pool's fiscal year and after the member has discontinued membership in the Pool. If the assessment has to be collected by suit, the member agrees to pay the Pool's reasonable attorney's fees and all costs incurred in the suit. Each member agrees to execute necessary authorization fors permitting the Pool or (heir designees to obtain information and data required in determining the experience or other rating modification of such member. 16. Reporting of Claims or Losses All claims and accidents, or occurrences, with the potential of producing claims against a member or the Pool, irrespective of any retention or deductible, shall be promptly reported to the Board or its service agent together with such information thereon as shall be requested by the Board or service agent. All property losses by the member with the potential of being reimbursed or paid by the Pool shall also be promptly reported in like manner to the Board or its service agent. The claims and loss reports shall be in accordance with the procedures established from time to time by the Board or its service agent. 17. Defending and Handling Claims Except as limited in the coverage forms (and regardless of the amount of any deductible), the Pool shall be responsible for investigating, handling, negotiating and defending all claims against a member which are within the purview of this agreement even though such allegations or demands are wholly groundless, false, or fraudulent. Further, with respect to such claims, the Pool shall pay all costs reasonably incurred for investigating, negotiating or defending such claims together with all interest accruing after the entry of judgement. The Pool shall supervise and control all legal counsel on behalf of the Pool necessary for the prosecution or defense of any litigation. All legal counsel shall relay all settlement offers to the Pool or its designee and the Pool's decision regarding such offers shall be binding. A member may upon notice in writing, decline to accept settlement of claim involving it, but in such event shall become obligated for any payment of sums above the settlement amount if higher payout, including attorneys fees, is ultimately required. Each member agrees to fully cooperate in the investigation and defense of any claims by supplying any information and assistance deemed by the Board, the service agent, or counsel, to be needed or helpful to handle such action. If a personal appearance by an official or employee of member is necessary in any dispute, the expense of such appearance shall be paid by the member. 18. Subrogation/Recoveries Each member agrees that in the event ofthe payment of any loss by the Pool under this agreement, the Pool shall be subrogated to the extent of such payment to all the rights of the member against any person or other entity legally responsible for damages for said loss, and in such event, the member hereby agrees to render at I reasonable assistance, other than pecuniary, to effect recovery. Legal and other expenses related to such recoveries shall be deducted from the amount recovered and paid to the entity which originally paid such expenses. After such recovery expenses are deducted, recoveries shall be distributed to the parties in an order inverse to that in which their respective liabilities accrued. 19. Inspection of Member's Facilities and Records The Board, the Administrator, the service agent, and any of their agents, servants, employees or attorneys, shall be permitted at all reasonable times to inspect the member's facilities and shall be permitted at all reasonable times and within five years after the final termination of the membership to examine member's books, vouchers, contracts, documents, budgets and records of any and every kind which relate to the activities of the Pool. 20. Risk Management The Board or its designee may, but is not obligated to, provide risk management services to members, designed to assist members in following a plan of managing risk of loss and loss control which may result in reduced losses and costs. Each member agrees to initiate and maintain a safety program and agrees to follow the general recommendations of the Board and the service agent in this respect. Safety to property and the public shall have the highest priority. However, each member shall remain solely responsible for all decisions concerning its safely program and practices and may not rely upon evaluations and recommendations made by the Pool, the Board, the service agent, the administrator, or their representatives in making final decisions concerning its safety program and practices. Notwithstanding the foregoing, each member agrees for the duration of its membership in the Pool to adopt and follow such minimum risk management programs and procedures as shall be adopted, and amended from time to time, by the Board. 21. Expenditure of Pool Funds Funds from all sources coming into the hands of the Board during any one fiscal year of the Pool shall be set aside for the Pool and shall be used only for the following purposes: Payment of fees for service agents as provided in section 5 hereof. Payment of fee to the Administrator as determined by the Board. Payment of lawful assessments, if any, as required by any lawful authority. Payment of the cost of all bonds including errors and omissions coverage for all officers and employees, and fidelity coverage for the Group and its employees and the Administrator. Payment of all legal fees, actuarial fees, accounting fees, or other miscellaneous expenses relating to the Board or the Pool. Payment of the costs of any insurance policy, excess insurance policy, reinsurance treaty, loan commitment, letter of credit or similar agreement entered into directly by the Group or on behalf of the members, as deemed advisable by the Board. As provided within this agreement and pursuant to the terms of the member's coverage, payment of claims, including, without limitation, settlements, awards, judgements, legal fees, investigation costs in all contested cases, appeal bonds, and establishment of reserves necessary to provide for all of the same. Subject to the commission's regulations, as applicable, following the conclusion of each 12 month's operation of the Pool ("annual period "), distribution to the extent not otherwise prohibited bylaw to members in such manner as the Board in its discretion shall deem appropriate and equitable, such discretion being applicable to but not limited to, denying or limiting any distribution to members who have had their membership terminated or are not in good standing, and making distribution only to members with a loss ratio not in excess of level designated by the Board, of any excess monies remaining after payment of items a. through g. inclusive above; provided, however, that no such distributions shall be made earlier than 12 months after the end of each annual period; provided further, that undistributed excess funds from previous annual periods may be distributed at any time if not required for reserves and if approved by the Board. A percentage of any surplus may be allocated to a restricted surplus account to be used at the discretion of the Board, subject to any required approvals by the Commission. Prior to the receipt of such funds and with prior notice to members, the Board may designate certain funds for inclusion in a capitalization account to be used for other Pool years at the discretion of the Board. Such fund may be combined with the restricted surplus account, if any. 22. Fiscal Year /Continuation of Agreement The Group and the pool shall operate on a fiscal year from 12:01 a.m. July first to midnight of June thirtieth of the next calendar year. Application for continuing membership, when approved in writing from the members of their designee, upon payment of all sums due by the member, shall constitute a continuation of this agreement for each succeeding Fiscal period unless cancelled by the Board, or unless the member shall have resigned or withdrawn from aid Group by written notice as provided in Section 2 hereof. 23. Sovereign Immunity Nothing in this agreement shall he construed to waive or limit in any way a member's sovereign immunity. Sovereign immunity is not applicable to GRTC, as GRTC is a public service corporation. 24. Miscellaneous The Group, the member which is a party hereto, and each other member, whether now or to become a member, agree to be bound by all the terms and conditions of this agreement Jr. If any provision of this agreement is held invalid, such invalidity shall not affect other provisions of this agreement which can be given effect without the invalid provision, and to that end the provisions of this agreement are severable. IN W ITNESS WHEREOF, this agreement is executed on behalf of the member named herein and by the Group on behalf of the members collectively, each by a duly authorized representative. ///////f�///� yttt�� By: Z12.0 , &" /L. Tw /-' /.L, G /N.rnR/N�G�/4s >,L —' Authorized Representative Name: Aj -4y[4 leoGAr TG Member Organization Name VIRGINIA ASSOCIATION OF COUNTIES GROUP SELF INSURANCE RISK POOL (VACoRP) Author' e Representative . ............................... Presentation to Management of the Greater Roanoke Transit Company July 18, 2016 `� Cherry Bekaert "' CPAs & Advisors ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ Table of Contents rm% Cherry Bekaert z • CPAS&A&- ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ 3 ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ e e e ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ Engagement Services ► You have engaged us to provide the following: • An audit of GRTC's FY 2016 financial statements • Audit of GRTC's major federal programs required by the Uniform Grant Guidance ■ ■ ■ ■ IN IN ■ ■ ■ ■ IN ■ ■ IN ■ ■ ■ ■ ■ ■ ■ IN ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ Service Deliverables • Report on the financial statements of GRTC as of and for the year ending June 30, 2016 • Report on internal control over financial reporting and on compliance and other matters required by Government Auditing Standards • Report on compliance for each major federal program and internal control over compliance in accordance with the Uniform Grant Guidance •Audit plan and strategy • Results of the audit �� Cherry Bekaert"' i I' 7AA ■ ■ _ i Audit Methodology r a' � ■ ■ ■ ■ IN ■ ■ ■ ■ ■ ■ ■ ■ IN IN ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ IN IN ■ ■ ■ Audit Methodology Cherry Bekaert utilizes a top -down risk -based integrated audit approach which is broken into three phases: • Perform risk assessment procedures to determine the significant audit areas and reporting and compliance requirements • Update our GRTC specific Provided By Client list • Update audit testing programs based on identified audit and financial reporting risks • Perform appropriate substantive and analytical procedures, including tests of internal controls, where appropriate. • Manager and Partner oversight throughout the process • Communicate testing results and other matters through status updates • Evaluate the results, communicate with management and the Board and issue the required reports �� Cherry Bekaert 8 cv,4&, p.o ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ Audit Methodology — Single Audit Cherry Bekaert employs an efficient, effective, compliant, and time - tested Single Audit process based on three phases: • Identify major federal grant programs and their respective compliance requirements based upon a risk -based analysis • Test the administrative control systems to verify compliance with general and specific grant requirements • Test for conformance with compliance requirements (e.g., allowable costs, reporting) • Summarize audit results, report any compliance and /or internal control finding(s) to management, and assist in preparation of corrective action plan(s) • Prepare required reports along with a Schedule of Findings and Questioned Costs �� Cherry Bekaert 9 CPA, &Aarisors IPI Significant Audit Areas ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ Significant Audit Areas Based on our preliminary risk assessment of GRTC, we have identified the following financial statement captions as significant audit areas and our audit test work will include the following procedures: • Update our understanding of controls in place over operating revenues • Perform predictive analytical procedures over service revenues • Confirm Due From Other Governments balances and analytically test revenues (e.g., year vs. year) • Test the collectability of receivables • Update our understanding of controls in place over expenses and payables and test accordingly • Perform a search for unrecorded liabilities • Perform analytical and other procedures over related balances Cherry Bekaert 7J s IN IN ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ Significant Audit Areas • Update our understanding of controls in place over capital assets and test accordingly • Roll forward capital assets, testing additions, and deletions • Analytically test depreciation expense •Test internal controls over major program administration •Test compliance with applicable compliance requirements (e.g., allowable costs, cash management, reporting) • Review journal entries to ensure net position is properly classified and disclosed • Review account groupings for financial statements • Review implementation of new GASB requirement for fair presentation ii.-% Cherry Bekaert'" 13 No c» s M.;w,. ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ New and Future Accounting and Reporting Changes GASB statements effective for FY 2016: ► GASB Statement No. 72 -Fair Value Measurement and Application Significantly changes fair value measurement and disclosures • Use valuation techniques that are appropriate in the circumstances and for which sufficient data are available to measure fair value. • Established a hierarchy for measurement of assets or liabilities — Level 1 — Quoted prices in active markets — Level 2 — Direct or indirect observations other than quoted prices — Level 3 — Unobservable inputs ► GASB Statement No. 76 -The Hierarchy of Generally Accepted Accounting Principles for State and Local Governments • The GAAP hierarchy prioritizes guidance governments follow when preparing GAAP financial statements; the standard reduces authoritative GAAP hierarchy to two categories from four t6mft Cherry Bekaerro 15 so cM+a.u.n.,. ■ ■ ■ ■ ■ ■ IN ■ IN ■ ■ ■ ■ ■ ■ ■ ■ ■ IN ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ IN ■ New and Future Accounting and Reporting Changes • Based on the foundational principle that all leases are financings of the right to use an underlying asset; use of operating lease accounting would cease • (Final completion expected: Summer 2016) • Financial Reporting Model (ED expected: March 2019) • Reexamine GASB Statement No. 34 financial reporting model • Certain Debt Extinguishments • Debt Disclosures— Reexamination of GASB 34, 38, and 62 • Revenue Recognition for Exchange and Exchange -Like Transactions— Reexamination of Specific GASB 62 Provisions • Economic Conditions Reporting rm% Cherry Bekaert 16 / CF&6 Ad,h., L7 Randy Burton Partner 540.342.6911 x3049 rburton @cbh.com Rob Churchman it* Partner 804.673.5733 churchman @cbh.com Donald Deeds Manager 540.342.6911 x3008 ddeeds @cbh.com y� GREATER ROANOKE TRANSIT COMPANY BOARD OF DIRECTORS September 15, 2016 President William D. Bespitch and Members of the Greater Roanoke Transit Company Board of Directors Dear Vice - President Price and Members of the Board: The regular meeting of the Greater Roanoke Transit Company Board of Directors will be held on Monday, September 19, 2016, 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, yn Stephanie M. Moon Re Ids Secretary PC: Christopher P. Morrill, Vice President of Operations, GRTC Daniel J. Callaghan, General Counsel, GRTC Barbara A. Dameron, Treasurer, GRTC Drew Harmon, Municipal Auditor Sherman M. Stovall, Assistant Vice President of Operations, GRTC Laura M. Carlini, Assistant General Counsel, GRTC Carl L-. Palmer, General Manager, Valley Metro Kevin Price, Assistant General Manager, Valley Metro K \GRTC.16 \September 19, 2016 Meeting Notice.doc GREATER ROANOKE TRANSIT COMPANY BOARD OF DIRECTORS September 19, 2016 ii'u EOC CONFERENCE ROOM ROOM 159 AGENDA Call to Order -- Roll Call. Director Karen Michalski - Karney was absent. 2. Approval of Minutes: Regular meeting of GRTC held on Monday, July 18, 2016. Without objection, the minutes were dispensed with and approved as recorded. 3. Reports of Officers: a. Secretary: Report of qualification of Melinda Payne as Regional Representative of the Greater Roanoke Transit Company Board of Directors for a term ending June 30, 2017. Due to unforeseen circumstances, the Oath of Office was not administered. b. General Manager: 1. Management Update: • Planning and Special Projects o Roanoke Valley Transit Vision Plan o Wal -Mart Shelter Project o Virginia Tech Carilion Research Institute Express Service • Other Updates o Procurement Systems Review o Transit Development Plan • Fiscal 2016 Ridership Without objection, the Management Update was received and filed. 2. Fiscal Year 2016 Financial Report (Unaudited) Without objection, the financial report was received and filed. 4. Other Business. NONE. The next meeting will be held on November 21, 2016 at 1:00 p.m., in the EOC Conference Room, Room 159, first floor, Noel C. Taylor Municipal Building. 5. Adjourn: 1:36 p.m. Li CLERK \DATA \smmoon \GRTC.16 \September 19, 2016 Action Agenda.doc V=11ey M Greater Roanoke Transit Company Board of Directors Meeting Management Update September 19, 2016 Planning and Special Projects Roanoke Valley Transit Vision Plan (RVTVP) S. b. 1, Un September 8, 2016 the Planning Commission's Technical Transportation Committee (TTC) approved the final draft of the RVTVP, inclusive of Roanoke County's comments and suggested revisions. The TTC will present its recommendation for approval to the Transportation Policy Board (TPO) for adoption at its next meeting scheduled for September 22, 2016. Wal -Mart Shelter Project On September 6, 2016, a contract was awarded to Owen Building and Remodeling, Inc. for the construction of the Wal- Mart bus stop shelter at Valley View Mall. Construction will begin October 17, 2016. Virginia Tech Carillon Research Institute Express Service (VTCRI) The Virginia Tech Carillon Research Institute has requested GRTC to provide an express Smart Way service, the Smart Way VTCRI Express, from the Institute's campus in Roanoke to Virginia Tech's main campus in Blacksburg, Staff is in the final phases of the route design and scheduling process. For the initial startup, two (2) buses will be leased; staff will file a capital grant that will provide the necessary funding to purchase three (3) buses, replacing the two (2) leased buses, plus a third bus for maintenance reserve. The express service is scheduled to begin Thursday, January 5, 2017. The estimated cost of the service is $365,000 per year. Virginia Tech will pay the full cost of the service. Other Updates Procurement System Review During the week of August 8, 2016, GRTC underwent its second on -site Federal Transit Administration (FTA) Procurement System Review (PSR); the first was conducted in May 2013. On September 9, 2016, GRTC received from FTA the PSR draft report for comment. The Review examined 57 elements; three (3), 5 %, were found to be deficient; all three (3) were corrected by GRTC staff prior to the draft report being issued. Thus, "No further corrective action is required of these elements." Transit Development Plan On September 1, 2016 staff attended the kick off meeting for the Transit Development Plan (TDP), a requirement of the state's Department of Rail and Public Transportation. By design, the TDP helps transit operators around the country to improve their efficiency and effectiveness by identifying the need and required resources for modifying and enhancing transit services provided to the general public, including people with disabilities. The TDP also provides a solid foundation for funding requests. The kick off meeting focused on nine (9) tasks that must be carried out in order to realize a TDP document detailing GRTC's Valley Metro fixed route and STAR paratransit service improvement plans for fiscal years 2018 through 2023. Greater Roanoke Transit Company PO Box 13247 • Roanoke, Virginia 24032 • Phone: 540.982.0305 • Fax:540.982.2703 • www,valleymetro.com Fiscal 2016 Ridership Overall, ridership for FY 2016 year to date as of June 2016 is 3% below FY 2015. The ridership percentage change for June year to date for FY16 compared to June year to date for FY15 for each GRTC service type is detailed below: Fixed Route (2.5%) Smart Way (12.5%) Smart Way Connector +1 % Star Line Trolley (12 %) STAR (2%) *LlmVeli ad, ad General Manager Copy. Vice President of Operations Assistant Vice President of Operations Treasurer Secretary GRTC General Counsel Municipal Auditor 3. 16. ;L. W=11403 M Greater Roanoke Transit Company Board of Directors Meeting Roanoke, Virginia September 19, 2016 William D. Bestpitch, President and Members of the Board of Directors Dear President Bestpitch and Members of the Board: Subject: Greater Roanoke Transit Company Fiscal Year 2016 Financial Report (Unaudited) The attached report provides Fiscal Year 2015 — 2016 financial performance information for the Greater Roanoke Transit Company (GRTC). GRTC experienced a net loss of $129,401 a decrease of $77,881 from FY 2014 — 2015. The net loss is offset by unrestricted retained earnings which total $262,334 at the end Fiscal Year 2015 - 2016. The significant factors affecting financial performance are outlined below. Revenue Total revenue decreased 4.6% compared to the same period last year and is 3% below the established budget. Significant factors impacting revenue performance include: • Fare revenue decreased 5.8% compared to FY 2015 and performed 9.3 °% below the established budget. • Other revenue (advertising, building rental, parking, etc.) decreased 3.5% and is 13.6% below the established budget. • Operating assistance decreased 4.3% compared to FY 15 and is within 1 °% of the established budget. Federal and state assistance decreased 6.1% compared to the prior year but are within 1% of the established budget. seater Roanoke Transit Company William D. Bestpitch, President and Members of the Board of Directors GRTC Financials September 19, 2016 Page 2 Expenses Total expenses decreased 3.7% over the same period last year and are 1.6% below the established budget. Significant factors impacting expenditure performance include: • Labor and fringe benefit expenses increased 2.7% and are within 1% of the established budget. • Services decreased 1.1% and are 2.5% below the established budget. • Materials and supplies expense decreased 22.1% and are 7.4% below the established budget. • Utilities expense decreased 8.2% compared to last year and is 12.2% below budget. • Miscellaneous expense, which includes the provision of para- transit service expense, decreased approximately 5.3% and is 4.3% above the established budget. (Ressppec�tfully Sub itted, Carl L. almer General Manager Cc: Vice President of Operations Assistant Vice President of Operations Treasurer Secretary GRTC General Counsel Municipal Auditor OPERATING EXPENSES Labor - Hourly &Salary GREATER ROANOKE TRANSIT COMPANY $3,383,861.58 SOUTHWESTERN VIRGINIA TRANSIT MANAGEMENT COMPANY $3,559,216.00 Operating Revenue and Expense Statement Fringe Benefits 1,613,313.76 For the Twelve Months Ending June 30, 2016 1,710,024.54 FY FY FY 16 94.19% 2016 2015 BUDGET % FY 16 555,320.78 June June TOTAL BUDGET OPERATING INCOME 9747% Materials B Supplies Operating Revenue $2,032,633.64 $2,156,886.07 $2,240,744.00 90.71% Non - Transportation Revenues 232,666.23 241,089.86 269,399.00 86.36% Total Income $2,265,299.87 $2,397,975.93 $2,510,143.00 9025% OPERATING EXPENSES Labor - Hourly &Salary $3,615,697.99 $3,383,861.58 $3,559,216.00 101.59% Fringe Benefits 1,613,313.76 1,710,024.54 1,712,892.00 94.19% Services 549,15126 555,320.78 563,419.00 9747% Materials B Supplies 1,373,247.34 1,763,539.42 1,482,454.00 92.63% Utilities 238,778.39 260,00781 271,915.00 87.81% Insurance Costs 363,515.34 358,633.42 361,286.00 100.62% Miscellaneous Expenses 1268819.28 1,340,29213 1217,023.00 104.26% Total Expenses $9,022,525.36 $9,371,679.68 $9,168,205.00 9841% Net Lass ($6,757,225.49) ($6,973,703.75) ($6,658,062.00) 101.49% Local Grants $2,203,751.56 $2,211,219.10 $2,222,336.00 99.16% State Grants 1,705,248.00 1,911,201.00 1,683,517.00 101.29% Federal Grants 2,718,825.00 2,799,764.00 2,752,209.00 9879% Total Subsidies $6,627,824.56 $6,922,184.10 $6,658,062.00 99.55% Net Income (loss) ($129,400.93) ($51,519.65) GREATER ROANOKE TRANSIT COMPANY SUMMARY OF STATEMENT OF NET POSITION 6/30/2016 6/30/2015 Year -to -Date Year -to -Date %of Change ASSETS CASH $ 558,435.01 $ 461,280.02 21% ACCOUNTS RECEIVABLE $ 705,368.62 $ 942,311.35 -25% INVENTORY $ 543,979.68 $ 509,236.99 7% FIXED ASSETS FIXED ASSETS $ 32,241,649.13 $ 31,809,632.21 1% ACCUMULATED DEPRECIATION $ (21,685,901.68) $ (19,804,229.43) 10% NET FIXED ASSETS $ 10,555,747.45 $ 12,005,402.78 -12% PREPAYMENTS $ 50,356.42 $ 108,496.92 -54% TOTAL ASSETS $ 12,413,887.18 $ 14,026,728.06 -11% CURRENT LIABILITIES ACCOUNTS PAYABLE $ 549,982.38 $ 599,867.14 -8% PAYROLL LIABILITIES $ 331,910.87 $ 280,062.74 19% OTHER LIABILITIES $ 478,080.24 $ 475,102.31 1% CAPITAL CAPITAL STOCK $ 5.00 $ 5.00 0% GRANTS $ 4,271,876.60 $ 4,488,531.10 -5% DEPRECIATION EXPENSE $ (1,906,722.25) $ (1,990,965.70) -4% RETAINED EARNINGS $ 8,399,814.27 $ 9,037,478.12 -7% CAPITAL CONTRIBUTIONS $ 418,341.00 $ 1,188,167.00 -65% NET INCOME (LOSS) $ (129,400.93) $ (51,519.65) 151% TOTAL CAPITAL $ 11,053,913.69 $ 12,671,695.87 -13% TOTAL LIABILITIES & CAPITAL $ 12,413,887.18 $ 14,026,728.06 -11% Greater Roanoke Transit Company FY 2015 -2016 Financial Report Vca��ey .��► MRoanoke, Virginia Summary • For FY 2015 -2016 GRTC experienced a net loss of $129,401 — FY 2014 -2015 net loss of $51,520 • Net loss offset by unrestricted retained earnings which total $262,334 at the end of the fiscal year M� Roanoke, Virginia Revenue • Total Revenue — Decreased 4.6% compared to prior year and performed 3% below the budget estimate • Fare Revenue — Decreased 5.8% compared to prior year and performed 9.3% below the budget estimate Transit ridership is down statewide • Other Revenue (Advertising, Parking, Building Rental) — Decreased 3.5% compared to prior year and performed 13.6% below the budget estimate • Operating Assistance — State /Federal revenue decreased 6.1% compared to prior year and performed within 1% of the budget estimate Expenses • Total Expenses — Decreased 3.7% compared to prior year and performed 1.6% below the established budget • Labor and Fringe Benefits — Increased 2.7% compared to prior year and performed 1% below the established budget • Materials and Supplies — Decreased 22.1% compared to prior year and performed 7.4% below the budget estimate • Utllltips — Decreased 8.2% compared to prior year and performed 12.2% below the budget estimate • Miscellaneous Expense — Decreased 5.3% compared to prior year and performed 4.3% above the established budget 2016 ANNUAL REPORT COMMONWEALTH OF VIRGINIA STATE CORPORATION COMMISSION ry I IIII VIII VIII VIII VIII VIII VIII IIII VIII VIII II I IIII IIII 1. CORPORATION NAME: GREATER ROANOKE TRANSIT COMPANY DUE DATE: 07131/16 2. VA REGISTERED AGENT NAME AND OFFICE ADDRESS: ATTY. SCC ID NO. 0153745 -5 DANIEL JOSEPH CALLAGHAN ADDRESS' ROOM 464 NOEL C. TAYLOR MUNICIPAL BUILDING y- NAME: An j j,,o_ d'1n e SI ' T2 -I C S 215 CHURCH AVENUE, S.W. 5. STOCK INFORMATION ROANOKE, VA 24011 ADDRESS: ChtinrC�- C�'+a`s— rS °Ui• CLASS AUTHORIZED COMMON 5 3. CITY OR COUNTY OF VA REGISTERED OFFICE: 217 - ROANOKE CITY 4. STATE OR COUNTRY OF INCORPORATION: VA- VIRGINIA DO NOT ATTEMPT TO ALTER THE INFORMATION ABOVE. Carefully read the enclosed instructions. Type or print in black only. 6. PRINCIPAL OFFICE ADDRESS: E] Mark this box it address shown below is correct II the black to the left is blank or contains incorrect data please add or correct the address below. ADDRESS: 464 MUNICIPAL BLD ADDRESS' 215 CHURCH AVE S W y- NAME: An j j,,o_ d'1n e SI ' T2 -I C S CITY /ST/ZIP ROANOKE,VA24011 CITY /ST /ZIP 7, DIRECTORS AND PRINCIPAL OFFICERS: All directors and principal officers must be listed An farms dual may be designated as both a director and an officer. Mae appmpnate Cox unless area below is dare' ❑ Inlormalon is coned IIntormation c smarect 0 Delete Inli mtation It the block to the left is blank or contains incorrect data, please mark appropriate box and enter information below tact Coleman 0 Addition 0 Rep'acement OFFICER ® DIRECTOR ® OFFFICER IRDIRECTOR NAME: DAVID B. TRINKLER y- NAME: An j j,,o_ d'1n e SI ' T2 -I C S TITLE: PRESIDENT TITLE: �iCR- -�2es+we�7 ADDRESS: 215 CHURCH AVENUE, S.W. ADDRESS: ChtinrC�- C�'+a`s— rS °Ui• CITY /ST /ZIP: ROANOKE, VA 24011 CITY/ST/ZIP: 0("CL/ Vq A ll I affirm that the information contained in this report is accurate and complete as of the date below. Lanur, U e c ��. ��z��Grne � �DOnl�Mho� a /SPr�4 � � D%b SIGNATURE OF DI CTOR/ FILER PRINTED NAME AN CORPO ATE TITLE DAT LISTED IN THIS REPOR It is a Class 1 misdemeanor for any person to sign a document that is false in any material respect with intent that the document be reheated to the Commission for filing. en I'll 2016 ANNUAL REPORT CONTINUED CORPORATION NAME: GREATER ROANOKE TRANSIT COMPANY 7. DIRECTORS AND PRINCIPAL OFFICERS: (continued) DUE DATE: 07131/16 SCC ID NO.: 0153745 -5 All directors and principal officers must be listed. An individual may be designated as both a director and an officer. Mark appercubl , tons unless area holow Is blank II Ibe block to Its loll Is blank or remains InOorrect data please mark sppmenato ❑ Inharnstlaniscreart X� Intarmalen is incorrel ❑ Dolon lalormaGnn box and enter lnlomtakn baldu. j*COneclon Li Addition ❑Replaeemanl OFFICER ® DIRECTOR [@ OFFICER 1°2 DIRECTOR NAME: WILLIAM D. BESTPITCH NAME: V �I11 C *1, . 7, 1� S'j CA k— TITLE: VICI= PRESIDENT TITLE' ' Re j r kP4 ADDRESS: 215 CHURCH AVENUE, S.W. y� N 1 ADDRESS: 'rN"t S C kwJ 0 �1 t� CITY /ST /ZIP: ROANOKE, VA 24011 CITY /ST /ZIP6`tQC ", 4 / 01 'Woll Mark appo nacre Lox mWo, area Ismer is blank: 11 the block to his left is blank or contains mbearmcl dale, please mark appropriate Inlormatlona secret D Informchear arnmred ❑ bidelnfmcei,on Mrx and enter Information belm []Cinactire LI Addition L)Replawment OFFICER [id DIRECTOR ❑ NAME: CHRISTOPHER P. MORRILL TITLE: VP OPERATIONS =ADDRESS: ADDRESS: 3063 POPLAR LANE, S. W. CITY /ST /ZIP: ROANOKE, VA 24015 Mark shompdafe box unless area below is blank c the black to the left is blank or contains irworeat data please mark apprepdate Information is mast L) Information is i scrod [] Delete inlormaben Lox and enter infounder below. 0 Correction L] Addition [] Replacement OFFICER ® DIRECTOR ❑ OFFICER ❑ DIRECTOR ❑ NAME: SHERMAN STOVALL NAME: TITLE: ASST VP DES TITLE: ADDRESS: 2427 WESTMONT NW ADDRESS: CITY /ST /ZIP: ROANOKE,VA24012 CITY /ST /ZIP: Mark beemprialr bex micas area below Is blank: Information is correct El Information Is'moonart 0 Delete Inlonnation tl the block to the had is blank or mnlatns incorout date, please mark appropuate box and enter information Lelaw. ❑ Correction O Addition ❑ Replacement OFFICER ® DIRECTOR ❑ OFFICER ❑ DIRECTOR ❑ NAME: BARBARAADAMERON NAME: TITLE: TREASURER TITLE: ADDRESS: 215 CHRUCH AVENUE, SW ADDRESS: CITY /ST/ZIP: ROANOKE, VA 24011 CITY /ST /ZIP: 7. DIRECTORS AND PRINCIPAL OFFICERS: All directors and principal officers must be listed. An individual may be designated as both a director and an officer. Mark appropriate box unless are below is blank Mark appropriate box unless are below is blank Dlnlormaiion is correct L] Information is Incorrect -]Delete Information ❑Inrormaiion is coned Dl nronnatlonisinoarred O Delete Information OFFICER ❑ DIRECTOR ❑ OFFICER ❑ DIRECTOR ❑ NAME: STEPHANIE M. MOON REYNOLDS NAME: TITLE: SECRETARY TITLE: ADDRESS. 215 CHURCH AVENUE, S. W. ADDRESS: CITY /ST /ZIP: ROANOKE, VA 24011 CITY /ST /ZIP: Mark appropriate box unless are below is blank Mark appropriate box unless are below is blank ❑linamelem is correct Olnform oterelnmrrect O Delete lnronnallon ❑ Information is correct Dln(omlatlonlslncorreq ❑ Delete Information OFFICER ❑ DIRECTOR ❑ OFFICER ❑ DIRECTOR ❑ NAME: NAME: TITLE: TITLE: ADDRESS: ADDRESS: CITY /ST /ZIP: CITY/ST/ZIP: Mark appropriate box unless are below Is blank Mark appropriate box unless are below is blank 71 Information is correct O Information is incorrect ODelete Information ❑ Information is correct Olnformalionemeamset O Delete Information OFFICER ❑ DIRECTOR ❑ OFFICER ❑ DIRECTOR ❑ NAME: NAME: TITLE: TITLE: ADDRESS: ADDRESS: CITY /ST /ZIP: ROANOKE, VA 24012 CITY /ST /ZIP: Mark appropriate box unless are below Is blank Mark appropriate as unless are below, Is blank ❑information lsoorrect ❑ Information is meorrect O Delete Information ❑mfonnatfonlswnect Olnforrnatlonlemcarrecl Doeletammrmanon OFFICER ❑ DIRECTOR ❑ OFFICER ❑ DIRECTOR ❑ NAME: NAME: TITLE. TITLE. ADDRESS: ADDRESS: CITY /ST /ZIP: CITY /ST /ZIP: ` COMMONWEALTH OF VIRGINIA — STATE CORPORATION COS�I 9N V ,ED STATEMENT OF ANNUAL REGISTRATION FEE ASSESSMENT MAY 19 2016 0153745 -5 I GREATER ROANOKE TRANSIT COMPANY m ' Assasg Brit dnllal: P Y991B 1391anCe.:i ant{ prct.t5ue ..` Year 2016 I May 1 2016 I $100.00 I $0.00 I $100.00 I July 31, 2016 B6113PKGOI- 0011735 7-00000059 K� GREATER ROANOKE TRANSIT COMPANY DANIEL JOSEPH CALLAGHAN ROOM 464 NOEL C. TAYLOR MUNICIPAL BUILDING 215 CHURCH AVENUE, S.W. ROANOKE, VA 24011 The business entity identified above has been assessed an annual registration fee by the State Corporation Commission pursuant to Virginia law. Payment of the annual registration fee must be received by the Commission on or before the payment due date to avoid imposition of a late payment penalty. It the payment due date falls on a weekend or scheduled holiday, payment, if delivered by mail or in person, will need to be received on or before the last business day that precedes the payment due date. Postmarks cannot be considered and extensions of time cannot be granted. See the additional information that follows this page. ' r5 Annual registration fees and penalties can be paid online at sccefile scc.virginia.gov. DO NOT INCLUDE ANY DOCUMENT OR CORRESPONDENCE WITH THE PAYMENT AND ITS COUPON. Documents and correspondence should be separately addressed and mailed to State Corporation Commission, Clerk's Office, P.O. Box 1197, Richmond VA 23218, or delivered to State Corporation Commission, Clerk's Office, 1300 E. Main Street, Richmond Virginia 23219. For assistance, call the Clerk's Office at (804) 371 -9733 or toll -free in Virginia at 1- 866722 -2551. netach Payment Coupon Along This Perforation ��,E COMMONWEALTH OF VIRGINIA— STATE CORPORATION COREMMED STATEMENT OF ANNUAL REGISTRATION FEE ASSESSMENT MAY 19 2016 IIITIi11 01537455 I GREATER ROANOKE TRANSIT COMPANY Assessment Date m Assessment Amu01 Pen lty Pr(ar Years Total Amount Paymem Due Date Year R hadan Foe GR Balance Due L JOSEPH CALLAGHAN 1 $100.00 1 July 31, 2016 464 NOEL C. TAYLOR MUNICIPAL BUILDING HURCH AVENUE, S.W. IOKE. VA 24011 2154 2016 May 1, 2016 5100.00 $0.00 1 $100.00 July 31, 2016 Dale Iny Rec'yd scZ.0001 Date Serv. & Mae, Rec'vd Payment Due Date Checked by Price Ext Year Account Distribution: X11 T -0TRAN9 GR kTERROANOKE TERLTRANSIT COMPANY _ibO -OIOD -504 6 ODg L JOSEPH CALLAGHAN 1 $100.00 1 July 31, 2016 464 NOEL C. TAYLOR MUNICIPAL BUILDING HURCH AVENUE, S.W. IOKE. VA 24011 2154 RdA �`nJV y by 1 h io led Ed o Date i F' " "'�N` e�1 assessed an annual registration fee by the Slate Corporation tsaron pursu Ant to virgings ent of the annual registration fee must be received by the Commission on or before the payment due date to avoid imposition of a late payment penalty. If the payment due date falls on a weekend or scheduled holiday, payment, it delivered by mail or in person, will need to be received on or before the last business day that precedes the payment due date. Postmarks cannot be considered and extensions of time cannot be granted. See the additional information that follows this page. 'U a Annual registration fees and penalties can be paid online at eccefile.see.virginia.aov. DO NOT INCLUDE ANY DOCUMENT OR CORRESPONDENCE WITH THE PAYMENT AND ITS COUPON. Oacunlents ant correspondence strould he separately atltlressed ar cl mated to Slate Corporation Commission, Clerk's Office, P.O. Box 1197, Richmond. VA 23218, or delivered to State Corporation Connmission, Clerk's Office, 1300 E Mein Street, Richmodd, Virginia 23219. mime For assistance, call the Clerk's Office at(e0a1371- 9733 or tog -free in Virylnia at 1- 861 . �i DeWh Paymanl Cwpon Along INS Panno anin LA STATE CORPORATION COMMISSION ANNUAL REGISTRATION FEE — PAYMENT COUPON SCC ID Nor Business Enfity Name 01537455 GREATER ROANOKE TRANSIT COMPANY Assessment Date of Assessment Total Amount Due Payment Due Date Year t��] 2016 May 1, 2016 1 $100.00 1 July 31, 2016 A penalty will be imposed if payment of the total amount doe has not been methad on or before the payment tlue dale. See the Inslmchon above it the due date is on a weekend or Ni on, 7607 If payment will be t. Make the check payable to 2. Write Me Company 5 3 Send the cheek and MIS payment coupon to me mated: Stage Corporation SCC ID No, on the hoot Slate Corlxxaton Commission in the envelope Commission, of the check. provided. (The mailing woress a also listed In the intanlallon that follows.) 2041040153745516000100004 VALLEY METRO GREATEN ROANOKE TRANSIT COMPANY I SOUTHWESTERN VIRGINIA TRANSIT MANAGEMENT COMPANY, INC. 18082 VENDORID NAME PAYMENT NUMBER CHECK DATE SCC0001 STATE CORPORATION CORM SSION 000W4143 /16/2016 18082 OURVO CHERNUMRER YOURVOUCHER NUMBER GATE AMOUNT AMOUNT PAID DISCOUNt NRiNE -OFF NEf 0153745 -5 20 6 5 1/2016 8100.00 1 100.00 80.00 0.00 8108 OF sim.00 8100.00 30.00 80.00 $100.00 C mmM S 172 ECW69 Si M7 08/11/2015 G4. II GREATER ROANOKE TRANSIT COMPANY BOARD OF DIRECTORS October 12. 2016 Melinda J. Payne Director of Economic Development City of Salem P. O. Box 869 Salem, Virginia 24153 Dear Ms. Payne: Enclosed you will find two copies of an Oath or Affirmation of Office with regards to your appointment as the regional representative of the Greater Roanoke Transit Company Board of Directors for a term ending June 30, 2017. This position rotates every two years between the City of Salem and Town of Vinton. The Oath must be administered by the 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 Reynolds, MMC Secretary Enclosures Melinda J. Payne October 12, 2016 Page 2 PC: Carl L. Palmer, General Manager, Valley Metro Kevin Price, Assistant General Manager, Valley Metro Christopher P. Morrill, Vice - President of Operations Sherman M. Stovall, Assistant Vice - President of Operations Daniel J. Callaghan, General Counsel Laura Carini, Assistant General Counsel Barbara A. Dameron, Treasurer COMMONWEALTH OF VIRGINIA To -wit: CITY OF ROANOKE I, Stephanie M. Moon Reynolds, Secretary, and as such Secretary of the Greater Roanoke Transit Company and keeper of the records thereof, do hereby certify that MELINDA J. PAYNE was appointed as the regional representative of the Greater Roanoke Transit Company Board of Directors for term ending June 30, 2017. Given under my hand and the Seal of the Greater Roanoke Transit Company this twelfth day of October 2016. 4 N.ry Secretary M Greater Roanoke Transit Company Roanoke, Virginia December 8, 2016 William D. Bestpitch, President and Members of the Board of Directors Dear President Bestpitch and Members of the Board: Subject: Greater Roanoke Transit Company October 2016 Financial Report The attached report provides financial performance information for October of Fiscal Year (FY) 2017. On a year -to -date basis, Greater Roanoke Transit Company (GRTC) experienced net income of $367,129 an increase of $134,147 compared to the same period in FY 2016. The significant factors affecting financial performance are outlined below. Revenue Total revenue increased 5.4 °% over the same period last year and is 3.8% above the established budget. Significant factors impacting revenue include: • Fare Revenues decreased approximately 7.8% compared to FY 2016 and are approximately 2.4% below the established budget. • Other Revenues (advertising, building rental, parking, miscellaneous) increased 7% and are 7% above the established budget. • Federal and State Revenue increased 10.6 °% but is performing at a level that exceeds budget expectations. Expenses Total expenses increased 1.4% compared to FY 2016 and are performing within 1% of the established budget. Significant factors impacting expenses include: • Labor and Fringe Benefits increased approximately 6.8 °% but are less than 1% above the established budget. Greater Roanoke Transit Company Va��ey M William D. Bestpitch, President and Members of the Board of Directors GRTC Financials December 8, 2016 Page 2 • Services increased approximately 10.9% but are less than 1% above the established budget. • Materials and Supplies decreased 13.4% and are within 1% of the established budget. • Utilities increased 10.2% and are approximately 2.6% below the established budget. • Property insurance decreased 29% and is 10.3% below the established budget. • Miscellaneous Expense decreased 1.3% and is performing within 1% above the established budget. Respectfully bmitted, L Palmer eneral Manager Cc: Vice President of Operations Assistant Vice President of Operations Treasurer Secretary GRTC General Counsel Municipal Auditor GREATER ROANOKE TRANSIT COMPANY SUMMARY OF STATEMENT OF NET POSITION 10/31/2016 10/31/2015 Year -to -Date Year -to -Date %of Change ASSETS $ 32,547,034.45 $ 32,139,743.76 1% CASH $ 653,590.53 $ 267,212.17 145% ACCOUNTS RECEIVABLE $ 1,073,277.40 $ 1,508,562.38 -29% INVENTORY $ 546,814.78 $ 504,155.61 8% FIXED ASSETS FIXED ASSETS $ 32,547,034.45 $ 32,139,743.76 1% ACCUMULATED DEPRECIATION $ (22,250,759.36) $ (20,438,257.51) 9% NET FIXED ASSETS $ 10,296,275.09 $ 11,701,486.25 -12% PREPAYMENTS $ 126,160.99 $ 146,013.71 -14% TOTAL ASSETS $ 12,696,118.79 $ 14,127,430.12 -10% CURRENT LIABILITIES ACCOUNTS PAYABLE $ 427,255.33 $ 437,171.04 -2% PAYROLL LIABILITIES $ 399,222.70 $ 370,116.09 8% OTHER LIABILITIES $ 764,924.50 $ 736,162.56 4% CAPITAL CAPITAL STOCK $ 5.00 $ 5.00 0% GRANTS $ 4,055,222.10 $ 4,271,876.60 -5% DEPRECIATION EXPENSE $ (564,857.681 $ (634,028.08) -11% RETAINED EARNINGS $ 6,998,686.59 $ 8,399,814.27 -17% CAPITAL CONTRIBUTIONS $ 248,531.00 $ 313,330.00 -21% NET INCOME (LOSS) $ 367,129.25 $ 232,982.64 58% TOTAL CAPITAL $ 11,104,716.26 $ 12,583,980.43 -12% TOTAL LIABILITIES & CAPITAL $ 12,696,118.79 $ 14,127,430.12 -30% GREATER ROANOKE TRANSIT COMPANY SOUTHWESTERN VIRGINIA TRANSIT MANAGEMENT COMPANY Operating Revenue and Expense Statement For the Four Months Ending October 31, 2016 FY FY FY 17 2017 2016 BUDGET % OF FY 17 October October TOTAL BUDGET OPERATING INCOME Operating Revenue $656,907.80 $712,169.54 $2,122,720.00 30.95% Non - Transportation Revenues 89896.79 84,001.66 223,084.00 40.30% Total Income $746,804,59 $796,171.20 $2,345,804.00 31.84% OPERATING EXPENSES Labor - Hourly &Salary $1,307,239.00 $1,269,912.74 $3,756,673.00 34.80% Fringe Benefits 575,344.16 492,727.87 1,804,992.00 31.88% Services 200,462.97 180,769.71 589,465.00 34.01% Matenals & Supplies 410,857.75 474,186.91 1,261,734.00 32.56% Utilities 80,461.65 73,017.81 262,212.00 30.69% Insurance Costs 87,273.34 123,067.01 379,475.00 23.00% Miscellaneous Expenses 445013.32 450,740.04 1.313092.00 33.89% Total Expenses $3,106,652.19 $3,064,422.09 $9,367,643.00 33.16% Net LOSS ($2,359,847.60) ($2,268,250.09) ($7,021,839.00) 33.61% Local Grants $769,361.85 $730,915.53 $2,312,924.00 33.26% State Grants 721,678.00 565,548.00 1,709,287.00 42.22% Federal Grants 1235937.00 1,204,770.00 2,999,628.00 41.20% Total Subsidies $2,726,976,85 $2,501,233.53 $7,021,839.00 38.84% Net Income (loss) $367,129.25 $232982.64 GREATER ROANOKE TRANSIT COMPANY BOARD OF DIRECTORS November 17, 2016 President William D. Bestpitch and Members of the Greater Roanoke Transit Company Board of Directors Dear Vice - President Price and Members of the Board: The regular meeting of the Greater Roanoke Transit Company Board of Directors will be held on Monday, November 21, 2016, 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, �uu�l- �.�y,nl�lS Stephanie M. Moon Reyno s ) 0 Secretary pc: Christopher P. Morrill, Vice President of Operations, GRTC Daniel J. Callaghan, General Counsel, GRTC Barbara A. Dameron, Treasurer, GRTC Drew Harmon, Municipal Auditor Sherman M. Stovall, Assistant Vice President of Operations, GRTC Laura M. Carini, Assistant General Counsel, GRTC Carl L. Palmer, General Manager, Valley Metro Kevin Price, Assistant General Manager, Valley Metro L \ CLERKIDATA \smmoonlGRTC.161September 19, 2016 Meeting Notice doe GREATER ROANOKE TRANSIT COMPANY BOARD OF DIRECTORS November 21, 2016 1:00 P.M. EOC CONFERENCE ROOM ROOM 159 AGENDA Call to Order. Directors Mark D. Jamison, Curtis E. Mills, and Melinda J. Payne were absent. 2. Approval of Minutes: Regular meeting of GRTC held on Monday, September 19, 2016. Without objection, the minutes were dispensed with and approved as recorded. 3. Reports of Officers: Secretary: 1. Qualification of Melinda Payne as the Regional Representative of the Greater Roanoke Transit Company Board of Directors for a term ending June 30, 2017. Without objection, the Report of Qualification was received and filed. b. General Manager: 1. Management Update: • Planning and Special Projects • Roanoke Valley Transit Plan • Wal -Mart Shelter Project • Other Updates o Fair Labor Standards Act o 2017 Triennial Review o GRTC Service to the Town of Vinton • Fiscal 2017 Ridership Without objection, the Management Update was received and filed. 2. First Quarter Financials (July- September) of Fiscal Year 2017. Without objection, the Financial Report was received and filed. 3. Approval of donation from STAR Vehicle to Apple Ridge Farm. Adopted Resolution (7 -0) 4. Presentation of GRTC Technology Plan. Without objection, the presentation was received and filed. 4. Other Business: a. Report GRTC Audited Financials from Cherry Bekaert & Holland, LLP, Independent Auditor. Without objection, the audit report was received and filed. 5. The next meeting will be held on January 17, 2017 at 1:30 p.m., in the EOC Conference Room, Room 159, first floor, Noel C. Taylor Municipal Building. 6. Adjournment: 1:52 p.m. Oath or Affirmation of Office Commonwealth of Virginia, City of Roanoke, to -wit: I, Melinda J. Payne, 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 the regional representative of the Greater Roanoke Transit Company Board of Directors for a term ending June 30, 2017, according to the best of my ability. (So help me God) 4, LL a, -_-L MELINDA . PAYNE The foregoing oath of office was taken, � swum to, and subscribed before me by Melinda J. Payne this /e ay of(J4%IF G[ I 2016. WEIR M 2/ MA M INM Greater Roanoke Transit Company Board of Directors Meeting Management Update November 21, 2016 Planning and Special Projects Roanoke Valley Transit Vision Plan (RVTVP) The Transportation Planning Organization's Policy Board (TPO) approved the RVTVP at its September 22, 2016 meeting. On October 12, 2016, members of the TPO and GRTC staff met with Roanoke County consultants for the County's Tanglewood Corridor Study to discuss how the RVTVP will interface and support the Study and the resulting plans for redeveloping the corridor. Wal -Mart Shelter Project Since the September, 2016 Update, GRTC has been advised that yet another change in real estate personnel at Wal Mart's corporate headquarters had occurred. Subsequently, Wal -Mart has made an unexpected alteration in the design specifications pertaining to a safe zone walk way connecting the ramp accessing the shelter platform and the side walk accessing the front entrance to the Wal Mart store. Management along with GRTC's architecture and engineering consultant are in the process of addressing the matter. The Board will be kept advised of progress and impact on project construction cost and schedule Other Updates Fair Labor Standards Act The United States Department of Labor has revised the regulations under the Fair Labor Standards Act (FLSA) which determine whether or not a position is eligible for an exemption from overtime pay. Effective December 1, 2016, the salary level threshold for a position to be classified as exempt will increase from $23,660 to $47,476. Currently, there are 16 employees who are classified as exempt from overtime. After reviewing the job duties and current salaries, it has been determined that 9 positions will remain exempt. The FY 2017 cost to adjust the salary of those employees below the new threshold is approximately $16,000, with the full year cost in FY 2018 of approximately $27,000. The remaining 7 exempt employees will be reclassified to non - exempt and become eligible for overtime, as it is more cost effective to pay overtime than it is to adjust the salaries to the new exempt level threshold. The FY 2017 anticipated cost of incremental overtime is approximately $23,000, with the full year cost in FY 2018 of $39,000. Greater Roanoke Transit Company PO Box 13247 • Roanoke, Virginia 24032 • Phone: 540.982.0305 • Fax 540.982.2703 • www.valleymetro.com 2017 Triennial Review On October 11, 2016, the Federal Transit Administration (FTA) advised GRTC management that FTA will be conducting a Triennial Review in fiscal 2017, covering fiscal years 2014 through 2016, plus the fisrt six (6) months of fiscal 2017. The review determines whether or not a grantee is administering its FTA funded programs in accordance with FTA regulations; it will assess management's grant program implementation practces to ensure that the FTA programs are adminitered in accordance with FTA program objectives. Management is in the process of assembling information for advance review due December 16, 2016; the on site review will be conducted May 30 and 31, 2017. GRTC Service to the Town of Vinton In response to growing concerns regarding the cost of GRTC's Valley Metro fixed route service and STAR paratransit complementary service for people with disabilities, management made a comprehensive presentation to Vinton's Town Council on September 20, 2016. The presentation covered ridership and related costs for both services for the period 2013 through 2016. GRTC's cost containment practices of locking down fuel prices through the end of fiscal 2018 and investing in fuel efficient vehicles were also presented along with possible service level modifications for reducing operating costs. On October 17, 2016, GRTC management received a list of follow up questions from the Town of Vinton, requesting a response by November 15, 2016; management responded accordingly and will meet with the Town Council's Finance Committee Tuesday, November 22, 2016 to discuss GRTC's response in more detail. Fiscal 2017 Ridership Overall, ridership for FY 2017 year to date as of September, 2016 is 3% below FY 2016. The ridership percentage change for September year to date for FY17 compared to September year to date for FY16 for each GRTC service type is detailed below: Fixed Route: (2.4 %) Smart Way: (13.7 %) Smart Way Connector: +5.5% Star Line Trolley: (7.4 %) STAR: (1.3 %) Respectfu fitted, r mer General Manager Copy: Vice President of Operations Assistant Vice President of Operations Treasurer Secretary GRTC General Counsel Municipal Auditor Va11ey % EVEW W40 Greater Roanoke Transit Company Board of Directors Meeting Roanoke, Virginia November 21, 2016 William D. Bestpitch, President and Members of the Board of Directors Dear President Bestpitch 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) 2017. For the first quarter of FY 2017, Greater Roanoke Transit Company (GRTC) experienced net income of $249,318, an increase of $40,013 compared to the same period in FY 2016. The significant factors affecting financial performance are outlined below. Revenue Total revenue increased 9.9% over the same period last year and is 3.2% above the established budget. Significant factors impacting revenue include: • Fare Revenues decreased 7% compared to FY 2016, and are 2% below the established budget. • Other Revenues (advertising, building rental, parking, miscellaneous) increased 3.4% compared to FY 2016 and are 4.5% above the established budget. • State and Federal operating assistance increased 18.2% and is performing above budget expectations. The Commonwealth of Virginia awarded GRTC $335,879 (19.7 %) more than budgeted for FY 17. Expenses Total expenses increased 9% compared to FY 2016, and are within 1% of the established budget. Greater Roanoke Transit Company I William D. Bestpitch, President and Members of the Board of Directors GRTC Financials November 21, 2016 Page 2 Significant factors impacting expenses include: • Labor and Fringe Benefits increased approximately 20 %, but are within 1% of the established budget. Expenditures in this category are higher on a comparative basis due to more pay periods in the first quarter of FY 17 than FY 16. • Materials and Supplies decreased 7.6% and are within 1% of the established budget. • Utilities increased 9.6% but performing 1.3% below the established budget. • Insurance decreased 28.7% are 7.8% below budget. • Miscellaneous Expense increased 1.2% and exceeds budget approximately 2 %. Respectfully Submitted, Carl L. Palmer General Manager Cc: Vice President of Operations Assistant Vice President of Operations Treasurer Secretary GRTC General Counsel Municipal Auditor OPERATING EXPENSES Labor - Hourly &Salary GREATER ROANOKE TRANSIT COMPANY $842,595.76 SOUTHWESTERN VIRGINIA TRANSIT MANAGEMENT COMPANY 26.81% Operating Revenue and Expense Statement Fringe Benefits 434,364.93 For the Three Months Ending September 30, 2016 1,804,992.00 FY FY FY 17 24.06% 2017 2016 BUDGET % OF FY 17 138,939.55 September September TOTAL BUDGET OPERATING INCOME 2161% Operating Revenue $488,509.73 $525,082.82 $2,122,720.00 2301% Non - Transportation Revenues 65792.92 63650.73 223,084.00 29.49% Total Income $554,302.65 $588,733.55 $2,345,804.00 23.63% OPERATING EXPENSES Labor - Hourly &Salary $1,007,216.79 $842,595.76 $3,756,673.00 26.81% Fringe Benefits 434,364.93 358,932.54 1,804,992.00 24.06% Services 139,189.39 138,939.55 589,465.00 2161% Materials & Supplies 325,093.00 351,872.91 1,261,734.00 25.77% Utilities 62,207.74 56,760.30 262,212.00 23.72% Insurance Costs 65,306.12 91,567.96 379,475.00 17.21% Miscellaneous Expenses 355,021.06 350901.89 1,313,092.00 27.04% Total Expenses $2,388,399.03 $2,191,570.91 $9,367,643.00 25.50% Net LOSS ($1,834,096.38) ($1,602,837.36) ($7,021,839.00) 26.12% Local Grants $581,601.07 $541,731.41 $2,312,924.00 25.15% State Grants 542,919.00 421,563.00 1,709,28200 31.76% Federal Grants 958,894.00 848,848.00 2,999,1 31.97% Total Subsidies $2,083,414.07 $1,812,142.41 $7,021,839.00 29.67% Net Income (loss) $249,317,69 $209,305.05 GREATER ROANOKE TRANSIT COMPANY SUMMARY OF STATEMENT OF NET POSITION 9/30/2016 9/30/2015 Year -to -Date Year -to -Date %of Change ASSETS CASH $ 695,321.82 $ 531,410.97 31% ACCOUNTS RECEIVABLE $ 1,115,632.32 $ 1,360,421.41 -18% INVENTORY $ 531,177.28 $ 507,752.42 5% FIXED ASSETS FIXED ASSETS $ 32,492,163.84 $ 32,108,076.75 1% ACCUMULATED DEPRECIATION $ (22,107,975.58) $ (20,277,250.71) 9% NET FIXED ASSETS $ 10,384,188.26 $ 11,830,826.04 -12% PREPAYMENTS $ 111,016.44 $ 106,679.41 4% TOTAL ASSETS $ 12,837,336.12 $ 14,337,090.25 -10% CURRENT LIABILITIES ACCOUNTS PAYABLE $ 353,994.34 $ 425,864.86 -17% PAYROLL LIABILITIES $ 401,571.31 $ 305,274.18 32% OTHER LIABILITIES $ 999,894.99 $ 910,771.57 10% CAPITAL CAPITAL STOCK $ 5.00 $ 5.00 0% GRANTS $ 4,055,222.10 $ 4,271,876.60 -5% DEPRECIATION EXPENSE $ (422,073.90) $ (473,021.28) -11% RETAINED EARNINGS $ 6,998,686.59 $ 8,399,814.27 -17% CAPITAL CONTRIBUTIONS $ 200,718.00 $ 287,200.00 -30% NET INCOME (LOSS) $ 249,317.69 $ 209,305.05 19% TOTAL CAPITAL $ 11,081,875.48 $ 12,695,179.64 -13% TOTAL LIABILITIES & CAPITAL $ 12,837,336.12 $ 14,337,090.25 -10% GREATER ROANOKE TRANSIT COMPANY BOARD OF DIRECTORS November 23, 2016 Carl L. Palmer, General Manager Valley Metro P. O. Box 13247 Roanoke, Virginia 24032 Dear Mr. Palmer: I am enclosing copy of a resolution authorizing Greater Roanoke Transit Company's General Manager to donate the 2007 STAR paratransit vehicle to Apple Ridge Farm, in compliance with Federal Transit Administration Circular 5010.1D; and authorizing the Vice President of Operations and General Manager to take such further actions and execute such further documents, as may be necessary to implement, administer, and enforce such donation as referred to in the General Manager's report dated November 21, 2016. The abovementioned resolution was adopted by the Board of Directors at its regular meeting held on Monday, November 21, 2016. Sincerely, Stephanie M. Moon Reynolds Secretary PC: Christopher P. Morrill, Vice - President of Operations Sherman M. Stovall, Assistant Vice - President of Operations Barbara A. Dameron, Treasurer Daniel J. Callaghan, General Counsel Laura Carini, Assistant General Counsel Troy A. Harmon, Municipal Auditor Kevin Price, Assistant General Manager Tiffany 011ie, Procurement Supervisor L ACLFRKVATAkfi.a,,AGRTC - CorrwpandeoacsW ovember 2016W ovembm 21 corzeapondwce pcsaluuon),doc BOARD OF DIRECTORS OF THE GREATER ROANOKE TRANSIT COMPANY A RESOLUTION AUTHORIZING GREATER ROANOKE TRANSIT COMPANY'S GENERAL MANAGER TO DONATE A STAR PARATRANSIT VEHICLE, IN COMPLIANCE WITH FEDERAL TRANSIT ADMINISTRATION (FTA) CIRCULAR 5010.11); AND AUTHORIZING THE VICE PRESIDENT OF OPERATIONS AND GENERAL MANAGER TO TAKE SUCH FURTHER ACTIONS AND EXECUTE SUCH FURTHER DOCUMENTS, AS MAY BE NECESSARY TO IMPLEMENT, ADMINISTER, AND ENFORCE SUCH DONATION. WHEREAS, Greater Roanoke Transit Company (GRTC) has a 2007 STAR paratransit vehicle that has reached the end of its useful life, as dcfined in Federal Transit Administration (FTA) Circular 5010.11D, by exceeding four (4) years and 100,000 miles of rcvenue service; WHEREAS, using industry standard vehicle comparables, the vehicle has an assessed current market value of $2,200; WHEREAS, in accordance with FTA Circular 5010.11) governing the disposition of vehicles with a current market value less than $5,000, GRTC may dispose of vehicles in a manner consistent with its local policy; and WHEREAS, Apple Ridge Farm, a youth camp operating in Floyd County, Virginia, with administrative offices in Roanoke, Virginia, has requested that GRTC donate to it the 2007 STAR paratransit vehicle. THEREFORE, BE IT RESOLVED by the Board of Directors of the Greater Roanoke Transit Company as follows: 1. GRTC's General Manager is authorized, for and on behalf of GRTC to take such actions to donate the 2007 STAR paratransit vehicle to Apple Ridge Farm, referred to in the General Manager's report dated November 21, 2016, to this Board. 2. The Vice President of Operations and General Manager are further authorized to take such further actions and execute such further documents, as may be necessary to implement, administer, and enforce such donation, with any such documents to be in a form approved by general counsel. ATTEST, Date/.. �t %O �� _ _ U✓w� Stephame M. Muon Reyno , Secr ry M Greater Roanoke Transit Company Board of Directors Meeting November 21, 2016 The Honorable William D. Bestpitch, President, and Members and Officers of the Board of Directors Greater Roanoke Transit Company Roanoke, Virginia Subject: Authorization to Donate STAR Para - Transit Vehicle Background In accordance with Chapter IV, Project Management, Section 3f, Useful Life of Project Property, (1) (a) -(h) and (2)(a)11 of Federal Transit Administration (FTA) Circular 5010.1D, GRTC has retired three (3) paratransit vehicles in the STAR service fleet. Each vehicle, model years 2007 for two (2) and 2009 for the third, has met FTA's useful life criterion, having either operated in revenue service for more than 100,000 miles or four (4) years. Using industry standard vehicle comparables, each of the three (3) vehicles have an assessed current market value of $2,200. In accordance with FTA Circular 5010.1 D governing the disposition of vehicles with a current market value less than $5,0000, grantee's may dispose of vehicles in a manner consistent with its local policy. "Because there is no Federal interest in any unit of grant assisted property with a FMV [Fair Market Value] of $5,000 or less, the grantee may do what it wishes with that property, including removing parts as it sees ft" (Circular 5010.1D, Chapter IV, Project Management, Section 3 Revised: July 2010). Apple Ridge Farm, a youth camp operating in Floyd County, Virginia, with administrative offices in Roanoke, Virginia has requested GRTC consider donating a vehicle to the Camp. GRTC wishes to donate one of the three (3) aforementioned STAR paratransit vehicles. Upon concurrence by the GRTC Board of Directors, GRTC, as a matter of record, will advise FTA of the request to donate and GRTC's wish to grant it. Recommendation Recommend that GRTC donate one (1) of three (3) aforementioned STAR paratransit vehicles, that in accordance with Federal Transit Administration regulation, has reached the end of their useful lives, be donated to Apple Ridge Farm, a youth camp operating in Floyd County, Virginia, with administration offices in Roanoke, Virginia. XRespLe e a, al 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 Presentation to the Greater Roanoke Transit Company November 21, 2016 �04 Cherry Bekaert "` cVAs & Advisors Engagement Services Overall Audit Results Required Communications with Those Charged with Governance Future Accounting and Reporting Changes . ............................... Ir AP 3 ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ Engagement Services ► You have engaged us to provide the following: ■ Audit of GRTC's FY 2016 financial statements • Audit of GRTC's major federal programs as required by the Uniform Guidance (Single Audit) • To report on internal control over financial reporting and on compliance as required by Government Auditing Standards ■ Complete the appropriate sections of the Data Collection Form 5 Service Deliverables • Audit Deliverables: • As of and for the fiscal year ended June 30, 2016: • Opinion on the GRTC's financial statements • Report on internal control over financial reporting and on compliance and other matters required by Government Auditing Standards • Report on compliance for each major federal program and internal control over compliance in accordance with the Uniform Grant Guidance • Reporting to the Board: • Audit plan and strategy • Communicated July 18, 2016 • Results of the audit Cherry Bekaert " 6 cl4 I, — 10N0EM0 ■0 ■waNNNNN Overall Audit Results ► Our opinion on the 2016 financial statements is unmodified or a "clean" opinion ► Internal control over financial reporting is unmodified ► Internal control over grant compliance is unmodified ► Major Federal Program tested: ► Federal Transit Cluster �mb Cherry Bekaert CM AM -, ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ '00'" ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ Required Communications • Adoption of new accounting policies effective July 1, 2015 • GASB Statement No. 72 — Fair Value Measurement and Application • No change in the application of other existing accounting policies • Depreciation and Useful Lives of Capital Assets �� Cherry Bekaert "° ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ 1 1 ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ Required Communications • Audit Adjustments • We did not identify any audit adjustments that were required to be made. • Uncorrected Misstatements • Inaccurate amortization of prepaid insurance — understatement of approximately $24,000 in expenses and beginning net position. • Inaccurate cutoff of bus pass sales — understatement of unearned revenue of approximately $31,000 offset by an overstatement of net position in the amount of $32,000 and an understatement of revenues of $1,000. 10 � &� ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ 1 ■ ■ ■ ■ ■ w ■ ■ ■ ■ Required Communications • There were none noted during fieldwork • We encountered no difficulties in performing the audit tart Cherry Bekaert 11 CPA &AE°i ■ ■■ ■■ ■ ■■■ ■� ww wwwwwww■ ■www■■■ Required Communications • We are not aware of any • Management representation letter will be provided at opinion issuance • Management letter • We are not aware of any relationship that we believe, based on current authoritative guidance, would impair our independence � ^ Cherry Bekaert'° 12 No C. IAd,�n Ab a New and Future Accounting and Reporting Changes ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ New and Future Accounting and Reporting Changes ► Changes to New Procurement Rules under UGG • Further detailed requirements for entities to have their own documented procurement procedures • Changes in the mirco - purchasing threshold methods • Will be effective for GRCT beginning on July 1, 2017 (2 year grace period from adoption of initial UGG requirements) %.�'" Cherry Bekaert CMa b M,r- ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ New and Future Accounting and Reporting Changes • Based on the foundational principle that all leases are financings of the right to use an underlying asset; use of operating lease accounting would cease • Financial Reporting Model (ED expected: March 2019) • Reexamine GASB Statement No. 34 financial reporting model • Certain Debt Extinguishments • Debt Disclosures — Reexamination of GASB 34, 38, and 62 • Revenue Recognition for Exchange and Exchange -Like Transactions — Reexamination of Specific GASB 62 Provisions • Economic Conditions Reporting � I% Cherry Bekaert 15 EO CPA, 6Adw- ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ Your Guide Forward �� Cherry Bekaert `� Cherry Bekaert "' CPAs &Advisors To the Board of Directors Greater Roanoke Transit Company In planning and performing our audit of the financial statements of the Greater Roanoke Transit Company ( "Company" or "GRTC "), as of and for the year ended June 30, 2016, in accordance with auditing standards generally accepted in the United States of America, we considered the Company's internal control over financial reporting ( "internal control ") as a basis for designing auditing procedures that are appropriate in the circumstances for the purpose of expressing an 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. However, during our audit we became aware of several matters that are opportunities for strengthening internal controls and operating efficiency. This letter summarizes our comments and suggestions regarding those matters. We previously communicated to you about the Company's internal control and compliance in our report dated November 11, 2016. This letter does not affect our report dated November 11, 2016, on the financial statements of the Company. We have already discussed these comments and suggestions with Company personnel and are pleased to discuss them in further detail. We will review the status of these comments during our next audit engagement. Management's responses herein were not subjected to the auditing procedures applied in the audit of the financial statements and, accordingly, we express no opinion on them. Our comments are summarized as follows: General Comments and Suggestions Protect Management — The Company utilizes grant monies to fund projects that span several years. As a result, we have noted instances where funds are not utilized or drawn down effectively within the grant timeline parameters. Grant awards and agreements may be terminated or cancelled once the expiration period has been met and funds have not been used as grant funds are only guaranteed for the period under award. We suggest implementing procedure to monitor and track grant drawdown progress, which should be reviewed by the members of the Board of Directors on a periodic basis. Management response: In September 2016, GRTC implemented a procedure for project managers and management to monitor and track the progress of its projects. The Purchasing Supervisor intends to establish bi- monthly meetings with project managers to review the progress of each grant's projects. GRTC intends to annually update the Board of Directors on the status of its grants. Other Comments and Suggestions Review Procurement Policies and Procedures — With the implementation of the Uniform Guidance ( "UG ") there have been multiple changes in the compliance requirements for entities receiving federal funding. These include, but are not limited to, increased requirements regarding documentation of the Company's procurement processes and procedures as well as changes in the procurement thresholds. We recommend that the Company review 2 CFR sections 200.318 through 200.326 in the UG before these standards become fully implemented for the Company on July 1, 2017. Manaaement response: GRTC intends to update and fully implement its procurement manual in accordance with 2 CFR sections 200.318 through 200.326 in the Uniform Grant Guidance by July 1, 2017. Greater Roanoke Transit Company Page 2 This communication is intended solely for the information and the use of Directors and management of GRTC and is not intended to be and should not be used by anyone other than these specified parties. Clf -u.Q Roanoke, Virginia November 11, 2016 GREATER ROANOKE TRANSIT COMPANY (A Component Unit of the City of Roanoke, Virginia) FINANCIAL STATEMENTS AND REQUIRED SUPPLEMENTARY INFORMATION As of and for the years ended June 30, 2016 and 2015 (With Report of Independent Auditor Thereon) GREATER ROANOKE TRANSIT COMPANY (A Component Unit of the City of Roanoke, Virginia) Table of Contents Page(s) Financial Section Report of Independent Auditor 1 —2 Required Supplementary Information: Management's Discussion and Analysis (unaudited) 3-9 Basic Financial Statements: Statements of Net Position 10 Statements of Revenues, Expenses, and Changes in Net Position 11 Statements of Cash Flows 12 Notes to the Basic Financial Statements 13 -21 Sin-le Audit Section Schedule of Expenditures of Federal Awards 22-23 Report of Independent Auditor 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 24-25 Report of Independent Auditor on Compliance for Each Major Program and on Internal Control over Compliance Required by the Uniform Guidance 26 -27 Schedule of Findings and Questioned Costs 28 `i Cherry Bekaert`°' CPAs b Ad...rs Report of Independent Auditor To 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, a component unit of the City of Roanoke, Virginia, as of and for the years ended June 30, 2016 and 2015, and the related notes to the financial statements, which collectively comprise the Greater Roanoke Transit Company's basic financial statements as listed in the table of contents. Management's Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Auditor's Responsibility Our responsibility is to express 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 audits to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. Opinion In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of the Greater Roanoke Transit Company, as of June 30, 2016 and 2015, and the changes in its financial position and its cash flows for the years then ended in accordance with accounting principles generally accepted in the United States of America. Other Matters Required Supplementary Information Accounting principles generally accepted in the United States of America require that the management's discussion and analysis on pages 3 through 9 be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management's responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. Other Information Our audits were conducted for the purpose of forming an opinion on the financial statements that collectively comprise the Greater Roanoke Transit Company's basic financial statements. The Schedule of Expenditures of Federal Awards is presented for purposes of additional analysis as required by Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, and is not a required part of the basic financial statements. The Schedule of Expenditures of Federal Awards is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the Schedule of Expenditures of Federal Awards is fairly stated, in all material respects, in relation to the basic financial statements as a whole. Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated November 11, 2016, on our consideration of the Greater Roanoke Transit 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 Greater Roanoke Transit Company's internal control over financial reporting and compliance. G,kw�btka - u.Q Roanoke. Virginia November 11, 2016 GREATER ROANOKE TRANSIT COMPANY (A Component Unit of the City of Roanoke, Virginia) Management's Discussion and Analysis Years Ended June 30, 2016 and 2015 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, 2016 and 2015. 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 in accordance with accounting principles generally accepted in the United States of America ( "GAAP "). 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 Basic 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, 2016 and 2015. Financial Highlights The following major financial highlights are of note for the years ended June 30, 2016 and 2015: Fiscal Year 2016 • Assets exceeded liabilities by $11,053,914 (net position) as of June 30, 2016. Net position includes $498,167, which is considered unrestricted and available to meet ongoing and future obligations of the Company, including its share of capital projects. • Net position decreased $1,617,781 for the year ended June 30, 2016. The unrestricted portion of net position decreased $168,126 and the investment in capital assets portion of net position decreased $1,449,655 compared to the balance as of June 30, 2015. GREATER ROANOKE TRANSIT COMPANY (A Component Unit of the City of Roanoke, Virginia) Management's Discussion and Analysis Years Ended June 30, 2016 and 2015 • Operating revenues decreased by $124,252 compared to the previous year, due primarily to a decrease in passenger fares and a decrease in ridership. • Operating expenses decreased $433,397 primarily due to decreases in fringe benefits, fuel costs, utilities, depreciation expense and a decrease in purchased services relating to Specialized Transit Arranged Rides ('ST.A.R" ). • Total net nonoperating revenues decreased $302,781 compared to the previous year due primarily to a decrease in noncapital grant assistance of $294,359 and gain on disposal of capital assets of $17,060, partially offset by an increase in advertising revenue of $5,102. • Capital contributions decreased $769,826 compared to the previous year due to decreased federal and state contributions for capital asset purchases in fiscal year 2016. Fiscal Year 2015 • Assets exceeded liabilities by $12,671,695 (net position) as of June 30, 2015. Net position includes $666.293, which is considered unrestricted and available to meet ongoing and future obligations of the Company, including its share of capital projects. • Net position decreased $854,319 for the year ended June 30, 2015. The unrestricted portion of net position decreased $101,514 and the investment in capital assets portion of net position decreased $752,805 compared to the balance as of June 30, 2014. • Operating revenues decreased by $38,947 compared to the previous year, due primarily to a decrease in passenger fares and a decrease in ridership. • Operating expenses increased $405,678 primarily due to increases in utilities, labor and fringe benefits, 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, 2015, resulted in an increase in cost to the Company. • Total net nonoperating revenues increased $52,593 compared to the previous year due primarily to an increase in noncapital grant assistance of $108,423, partially offset by a decrease in advertising revenue of $41,320. • Capital contributions decreased $2,184,589 compared to the previous year due to decreased federal and state contributions for capital asset purchases in fiscal year 2015. Additional detail on the above items, along with other information, is discussed in the following sections. GREATER ROANOKE TRANSIT COMPANY (A Component Unit of the City of Roanoke, Virginia) Management's Discussion and Analysis Years Ended June 30, 2016 and 2015 Net Position A summary of the major components of net position as of June 30, 2016, 2015, and 2014, is as follows: Summary of Ne( Position FisealYear Fiscal Year 2016 2015 increase increase 2016 2015 2014 (decrease) (decrease) Currant esscc $ 1.858.140 2,021,200 5,650,340 (163,060) (3,629,140) Capitol ussct.. nm 10.555,747 12,005402 12,75 8,207 (1449,655) (752.805) '1 12,413,887 14,026,602 18,408.547 (1,612,715) (4.381.945) Curren l'uhilim, 1.359,973 1,354,907 4.882533 5,66 (3527,626) Investment In capaal 2scG 10,555,747 12,005,402 12.758,207 (1,449.655) (752805) Unrestricted 49 &167 666.293 767,807 (168.126) (101514) TOmINoT swti 5 11.053914 12671.695 13.526,014 (1.617]81) (851319) Fiscal Year 2016 Total net position of $11,053,914 decreased $1,617,781, or 128 %, for the year ended June 30, 2016. The decrease in net position is primarily due to a decrease in capital assets, net, which decreased $1,449,655 or 12.1%. The unrestricted portion of net position decreased $168,126 or 25.2 %. Current assets decreased $163,060 primarily due to a decrease in the amount due from the Department of Rail and Public Transportation ( "DRPT ") of $265,671. The decrease was partially offset by an increase in cash and cash equivalents in the amount of $97,280. Current liabilities increased $5,066, or .4 %, compared to the balance as of June 30, 2015. The increase is primarily due to increased accrued salaries and benefits of $51,848 offset by a decrease in trade accounts payable of $49,760. The increase in accrued salaries and benefits is primarily due to an increase in the number of days (2) accrued compared to June 30, 2015. It is important to note that the Company has maintained financial operations without issuance of any long -term debt during fiscal year 2016. Fiscal Year 2015 Total net position of $12,671,695 decreased $854,319, or 6.3 %, for the year ended June 30, 2015. The decrease in net position is primarily due to a decrease in capital assets, net, which decreased $752,805 or 5.9 %. The unrestricted portion of net position decreased $101,514 or 13.2 %. Current assets decreased $3,629,140 primarily due to decreases in amounts due from the Federal Transit Administration ("FTA ") and the Department of Rail and Public Transportation ( "DRPT") of $2,576,676 and 5868,494, respectively. Cash and cash equivalents decreased $308,054. These decreases were partially offset by an increase in other assets of $84,151 primarily due to an increase in prepaid automobile insurance. Current liabilities decreased $3,527,626, or 72.2 %, compared to the balance as of June 30, 2014. The decrease is primarily due to a decrease in trade accounts payable of $3,509,308. The decrease in trade accounts payable is primarily a result of payment for nine (9) buses of $3,518,881. It is important to note that the Company has maintained financial operations without issuance of any Tong -term debt during fiscal year 2015. GREATER ROANOKE TRANSIT COMPANY (A Component Unit of the City of Roanoke, Virginia) Management's Discussion and Analysis Years Ended June 30, 2016 and 2015 Changes in Net Position Condensed financial information from the Statements of Revenues, Expenses, and Changes in Net Position for the years ended June 3(T 2016, 2015, and 2014, is provided below, followed by additional breakdown and analysis of the changes in the various categories: Condensed Statements dCharges in Net Position 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 near 2016 2015 2016 2015 2014 change change total upernGng revenues S 2,032,634 2,156,886 2,195,833 (124,252) (38,947) I'aal operating cspcnscs (10,929,248) (11,362,645) (10,956,967) 433,397 (405,678) 1 oral net nonnperaling revenues 6,860,492 7,163,273 7,110,680 (302,781) 52,593 Capital ummibrnons 418,341 1,188,167 3372756 (769.826) (2,184589) C huugcs n net"'sot (1,617,781) (854,319) E722.302 (761462) (2,576,621) Ending net poduiun S 11.053,914 12,67L695 13,526,014 (I,61Z781) (854.319) 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 2016 201 increase increase 2016 2015 2014 (decrease) (decrease) Operating revenues: Passenger fares $ 1,674,596 1,773.271 1,812,635 (98,775) (39,264) Strait Wa} fares 212,430 242,397 259,779 (24967) (17,382) Smart Way Connector fares 61,026 53,208 33,642 7,818 19,566 ST.A.R. fares Munn 80,850 83,751 (2,751) (2,901) Other primary fares 6,493 7,060 6,026 (577) 1.034 Total operating revenues 2,032,634 2,156.886 2.195,833 (124,252) (38,947) Nenoperating 2venues: Noncapital grants 6,627,825 6,922,184 6,813,761 (294,359) 108,423 Advertising 111.037 105.935 147,255 5,102 (41,320) Rental income 66,473 66,722 64,588 (249) 2,134 Parking income 44,355 40,943 45,464 3,412 (4,521) Interest income 1,130 1,923 4,183 (793) (2260) Gain on disposal ofcapital assets, net - 17,060 13,380 (17,060) 3,680 Miscellancmis 9,672 8,506 22,049 L166 (11543) Total net nonoperming resenueS 6,860.492 7,163,273 7,110,680 (302,781) 52,593 Capital contributions 418,341 LI8$167 3,372756 (769,826) (2,184.589) Total rcvcnues $�1,a 7767 --Ti'6$,7'f� - '£,3577 77707 �, (, 77 GREATER ROANOKE TRANSIT COMPANY (A Component Unit of the City of Roanoke, Virginia) Management's Discussion and Analysis Years Ended June 30, 2016 and 2015 Fiscal Year 2016 Total operating revenues decreased $124,252 or 5.8 %. Passenger fares decreased $98,775, or 5.6 %, compared to the previous period primarily due to a decrease in boarding fares and monthly pass sales of $96,089 and $19,156, respectively. Passenger ridership decreased to 2,159,005 from 2,225,910 in the prior year for all standard fixed routes. GRTC operates a commuter service, The Smart Way, between Roanoke and Blacksburg. The Smart Way service operating revenue decreased $29,967, or 12.4 %, for the year ended June 30. 2016, compared to the previous year. Ridership on The Smart Way service decreased to 52,388 in fiscal year 2016 from 59,779 in fiscal year 2015. GRTC operates a second 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 increased to $61,026 in fiscal year 2016 from $53,208 in fiscal year 2015. Ridership on The Smartway Connector service increased to 19,829 in fiscal year 2016 from 19,646 in fiscal year 2015. 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 $6,483 in fiscal year 2016 from $7,060 in fiscal year 2015. The Company's total passenger rides for fiscal year 2016, including all fixed and Smart Way routes, were 2,304,792. Total net nonoperating revenues decreased $302,781, or 4.2 %, compared to the previous year primarily due to decreases in noncapital grant funding of $294,359. The Commonwealth of Virginia funding decreased $205,953 primarily due to a decrease in the states allocation of it funds. Capital contributions fluctuate based on the capital asset needs of the Company. Accordingly, capital contributions decreased $769,826, or 64.8 %, compared to the previous year, due to the Company's decrease in capital purchases in fiscal year 2016 compared to fiscal year 2015. Capital assets purchased in fiscal year 2016 included replacing concrete in bus lanes, restriping lanes in Campbell Court, and architectural and engineering services for GRTC's expansion facility. Accordingly, capital contributions decreased for the year ended June 30, 2016, over the year ended June 30, 2015, as a result of a decrease in capital asset purchases. Fiscal Year 2015 Total operating revenues decreased $38,947 or 1.8 %. Passenger fares decreased $39,264, or 2.2 %, compared to the previous period primarily due to a decrease in boarding fares and weekly pass sales of $29,226 and $29,702, respectively. These decreases were offset by an increase in monthly pass sales of $19,663. Passenger ridership decreased to 2,225,910 from 2,281,230 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 $17,382, or 6.7 %, for the year ended June 30, 2015, compared to the previous year. Ridership on The Smart Way service decreased to 59,779 in fiscal year 2015 from 63,689 in fiscal year 2014. GREATER ROANOKE TRANSIT COMPANY (A Component Unit of the City of Roanoke, Virginia) Management's Discussion and Analysis Years Ended June 30, 2016 and 2015 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 increased to $53,208 in fiscal year 2015 from $33,642 in fiscal year 2014. 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 increased to $7,060 in fiscal year 2015 from $6,026 in fiscal year 2014. The Company's total passenger rides for fiscal year 2015, including all fixed and Smart Way routes, were 2,382,907. Total net nonoperating revenues increased $52,593, or 7.4 %, compared to the previous year primarily due to increases in noncapital grant funding of $108,423. The Federal Transit Administration funding and Local Government funding increased $70,523 and $234,040, respectively. This increase was partially offset by decreases in nonoperating revenues from the Commonwealth of Virginia and Local share and Other revenue funding for $226,698 and $26,811, respectively, compared to the year ended June 30, 2014. Capital contributions decreased $2,184,589, or 64.8 %, compared to the previous year, due to the Company's decrease in capital purchases in fiscal year 2015 compared to fiscal year 2014. Capital assets purchased in fiscal year 2015 included replacement of the roof on the Campbell Court facility and replacement of fireboxes. Capital contributions Fluctuate based on the capital asset needs of the Company. Accordingly, capital contributions decreased for the year ended June 30, 2015, over the year ended June 30, 2014, as a result of a decrease in capital asset purchases. Expenses Fiscal year Fiscal year 2016 2015 increase increase 2016 2015 2014 (decrease) (decrease) Operating expenses: Transpcntainn $ 4812537 5,142,062 5.062274 (329,525) 7%788 Vchidemaintenance 1,044125 1- 020.016 1.044.570 20,109 (24554) Non.ehicic malntcnancc 279.349 278,300 252,770 1,049 25,530 AdminktraGun 2890.515 2,931.302 2,849,991 (40,787) 81,311 I)cprwiatiun 1X6,722 1990,965 1.747,362 (84,243) 243,603 total uper ring czprnsc. s 10,929.248 11,362,645 10,956,967 (433,397) 405.678 Fiscal Year 2016 Total operating expenses, totaling $10,929,248, decreased $433,397 compared to fiscal year 2015. Depreciation expense decreased $84,243 compared to June 30, 2015. Transportation decreased $329,525 primarily due to decreased materials and supplies expense and fringe benefits expense of $405,070 and $95,769, respectively. Materials and supplies decreased primarily due to a decrease in fuel expense for $390,182. These expenses were partially offset by an increase in Tabor expense for $172,135. GREATER ROANOKE TRANSIT COMPANY (A Component Unit of the City of Roanoke, Virginia) Managements Discussion and Analysis Years Ended June 30, 2016 and 2015 Administration decreased $40,787 primarily due to decreased utility and purchased transportation expense of $21,229 and $48,008, respectively. These expenses were partially offset by an increase in labor of $35,677. Fiscal Year 2015 Total operating expenses totaling $11,362,645 increased $405,678 compared to fiscal year 2014. Depreciation expense increased $243,603 primarily due to depreciation of nine Gillig buses purchased in June 2014. Transportation increased $79,788 primarily due to increased labor and benefits expense of $28,042 and $103,062, respectively. Fringe benefits increased primarily due to an increase in health insurance for $91,611. These expenses were partially offset by decreases in fuel expense for $66,844. Administration increased $81,311 primarily due to increased labor expense and fringe benefit, services, and purchased transportation expenses. Labor and fringe benefits increased $95,100 primarily due to the addition of two (2) positions, Accounting Supervisor and Purchasing Supervisor. Services for contract Tabor increased $20,936 primarily due to the contracting of a purchasing agent during a period of transition within the Administration Department. Purchased transportation expense increased $48,335 primarily due to increased ridership. These expenses were partially offset by a decrease of $93,604 in miscellaneous expense related to the cost of writing off bad debt of $122,458 in fiscal year 14 for the Smart Way Connector earmark that the Commonwealth of Virginia denied the Company for fiscal year 13 related expenses. Looking Ahead to Fiscal Year 2017 The Company's Board of Directors has adopted the Company's budget for fiscal year 2017. The Company intends to apply for funding of its expansion Maintenance and Storage Facility through VDOT's Smart Scale in October 2016. The Company has awarded the contract to construct the Wal -Mart Shelter. 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 the Director of Finance. 1108 Campbell Avenue SE, P. O. Box 13247, Roanoke, VA 24032. GREATER ROANOKE TRANSIT COMPANY (A Component Unit of the City of Roanoke, Virginia) Statements of Net Position June 30. 2016 and 2015 Assets 2016 2015 Current assets: Cash and cash equivalents $ 558,435 $ 461,155 Due from: Federal Transit Administration 497,898 467,798 Commonwealth of Virginia 64,585 333,600 Local governments 21,554 37,784 Accounts receivable 121,332 103,129 Supplies and materials (note 4) 543,980 509,237 Other assets 50,356 108,497 Total current assets 1,858,140 2,021,200 Capital assets (notes 3 and 5): Land 720,724 720,724 Buildings, structures and improvements 11,471,553 11,195,615 Buses 16,314,672 16,258,516 Shop and garage equipment 2,768,985 2,745,299 Office equipment and furnishings 965,715 889,478 Accumulated depreciation (21,685,902) (19.804,230) Capital assets, net 10,555,747 12,005,402 Total assets 12,413,887 14,026.602 Liabilities Current liabilities: Trade accounts payable 549,982 599,742 Accrued salaries and benefits 331,911 280,063 Other liabilities (notes 7 and 8) 478,080 475,102 Total current liabilities 1,359 973 1 354 907 Net Position Investment in capital assets 10,555,747 12,005,402 Unrestricted 498,167 666,293 Total net position $ 11,053,914 $ 12,671,695 See accompanying notes to the basic financial statements. 10 GREATER ROANOKE TRANSIT COMPANY (A Component Unit of the City of Roanoke, Virginia) Statements of Revenues, Expenses, and Changes in Net Position Years ended June 30, 2016 and 2015 See accompanying notes to the basic financial statements 11 2016 2015 Operating revenues: Charges for passenger fares $ 2,032,634 $ 2,156,886 Operating expenses: Salaries and wages 3,615,698 3,376,742 Fringe benefits (note 6) 1,613,314 1,717,145 Services 549,153 555,321 Utilities 238,779 260,008 Insurance 363,515 358,633 Purchased services and other expenses 1,268,819 1,340,292 Materials and supplies 1,373,248 1,763,539 Depreciation 1,906,722 1,990,965 "Iota[ operating expenses 10,929,248 11,362,645 Operating loss (8,896,614) (9,205,759) Nonoperating revenues (expenses): Noncapital grants or assistance: Federal Transit Administration 2,777,830 2,803,294 Commonwealth of Virginia 1,705,248 1,911,201 Cq of Roanoke, Virginia 1,812,106 1,779,917 City of Salem, Virginia 145,600 176,588 Town of Vinton, Virginia 109,824 126,437 New River Valley Metropolitan Planning Organization 46,478 49,487 Virginia Tech 11,108 13,559 Carilion Foundation 51,651 41,318 Downtown Roanoke, Inc. 26,985 23,913 O. Winston Link Museum (59,005) - Commonwealth Coach and Trolley Museum - (1,651) Roanoke Chapter National Railway Historical Society - (1,879) Total noncapital grants or assistance, net 6,627,825 6,922,184 1_ocal share and other revenues: Advertising 111,037 105,935 Rental income (note 8) 66,473 66,722 Parking income 44,355 40,943 Interest income 1,130 1,923 Gain on disposal of capital assets - 17,060 Other 9,672 8,506 "Iota) local share and other revenues 232,667 241,089 Total net nonoperating revenues 6,860,492 7,163,273 Loss before capital contributions (2,036,122) (2,042,486) Capital contributions 418,341 1,188,167 Change in net position (1,617,781) (854,319) Total net position at beginning of year 12,671,695 13,526,014 Total net position at end of the year $ 11,053,914 $ 12,671,695 See accompanying notes to the basic financial statements 11 GREATER ROANOKE TRANSIT COMPANY (A Component Unit of the City of Roanoke, Virginia) Statements of Cash Flows Years ended June 30, 2016 and 2015 Cash flows from operating activities and local share and other revenues (excluding interest): Cash received from customers Cash payments to suppliers for goods and services Cash payments to employees for services Local share and other revenue received Net cash used in operating activities Cash Flows from noncapital financing activity: Noncapital grants received Cash flows from capital and related financing activities: Acquisition of capital assets Proceeds from sale of capital assets Capital contributions Net cash provided by (used in) capital and related financing activities Cash flows from investing activity: Interest income received Net changes in cash and cash equivalents Cash and cash equivalents at beginning of year Cash and cash equivalents at end of year Reconciliation of operating loss to net cash used in operating activities: Operating loss Adjustments to reconcile operating loss to net cash used in operating activities: Local share and other net revenue (excluding interest) Depreciation Gain on disposal of capital assets Changes in assets and liabilities: Increase in accounts receivable Increase in supplies and materials Decrease (increase) in other assets Increase (decrease) in trade accounts payable Increase (decrease) in accrued salaries and benefits Increase (decrease) in other liabilities Net cash used in operating activities 2016 2015 $ 2,032,634 $ 2,156,886 (3,763,774) (4,424,662) (5,177,164) (5,106,067) 213,334 188,837 (6,694,970) (7,185,006) 6,559.773 7,491,138 (510,191) (4,707,279) 17,060 741,538 4,074,110 231.347 (616,109) 1,130 1,923 97,280 (308,)54) 461,155 769209 $ 558,435 $ 461,155 $ (8,896,614) $ (9,205,759) 231,537 239,167 1,906,722 1,990,965 - (17,060) (18,202) (33,270) (34,743) (16,387) 58,141 (84,151) 3,363 (40,193) 51,848 (12,180) 2,978 (6.138) $ (6,694,970) Noncash investing activities: At June 3Q 2016 and 2015, purchases of capital assets included in trade accounts payable totaled $4,878 and $58,001, respectively. See accompanying notes to the basic financial statements. 12 GREATER ROANOKE TRANSIT COMPANY (A Component Unit of the City of Roanoke, Virginia) Notes to Basic Financial Statements June 30, 2016 and 2015 (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 (the "DRPT "), 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 SV'fMC, which include all bus drivers and mechanics, are under a separate contract ratified by the Amalgamated Transit Union, A.F.L. -CLO.- C.L.C., Local Union 1493 ( "Union ") in May 2015 and expiring in June 30, 2017. As of and for the years ended June 30, 2016 and 2015, the Company is reported as a discretely presented component unit with the City's reporting entity. (h) BasisofAccounting 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 accounting principles generally accepted in the United States of America ( "GAAP ") and conform with the requirements of the FTA's National Transit Database, as amended. Accordingly, revenues are recorded when earned and expenses are recorded at the time liabilities are incurred, regardless of when the related cash flows take place. Nonexchange transactions, in which the Company receives value without directly giving equal value in exchange, include appropriations from the City, grants, and donations. Revenues from grants and contributions are recognized in the fiscal year in which all eligibility requirements, including time requirements, if any are met. 13 (Continued) GREATER ROANOKE TRANSIT COMPANY (A Component Unit of the City of Roanoke, Virginia) Notes to Basic Financial Statements June 30, 2016 and 2015 (e) 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 fair 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. (it) Supplies and Materials Supplies and materials consist of various consumable items which are maintained on a perpetual basis with periodic verification based on physical count. Supplies and materials are valued using a weighted average cost approach. (e) 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 Contributed and donated capital assets are recorded at acquisition value at the date of receipt. The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend assets' lives are not capitalized. 60 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. (g) 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. (h) Compensated Absences Company employees are granted vacation leave in varying amounts. In the event of termination, an employee is paid 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 employcc utilizes it. 14 (Continued) GREATER ROANOKE TRANSIT COMPANY (A Component Unit of the City of Roanoke, Virginia) Notes to Basic Financial Statements June 30, 2016 and 2015 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. Compensated absence liabilities are reported as a component of accrued salaries and benefits. (i) 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. (j) Unearned Revenues Unearned revenues represent amounts for which asset recognition criteria have been met, but for which revenue recognition criteria have not been met. Grants and contributions received before the eligibility requirements are met have been recorded as unearned revenues. (k) 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, Inc. is the trustee of the Plan, which 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 Internal Revenue Service ("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 and the Department of Labor regulations. Charges to operations under the Plan are based on 3% of union and salary participants' eligible payroll. (l) Net Position Net position represents the difference between assets and liabilities. Net position may be comprised of three components: Net Investment in Capital Assets — Consists of the historical cost of capital assets net of any accumulated depreciation and outstanding debt used to finance those assets. Restricted — Consists of assets where limitations are imposed through external restrictions imposed by creditors, grantors or the laws and regulations of other governments. Unrestricted —All other net position is reported as net invested in this category. (Continued) GREATER ROANOKE TRANSIT COMPANY (A Component Unit of the City of Roanoke, Virginia) Notes to Basic Financial Statements June 30, 2016 and 2015 (in) Use of Estimates I he 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. (2) Cash and Cash Equivalents 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; • Commercial paper with a maturity of two- hundred seventy (270) days or less with a Moody's rating of prime I 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 thr cc 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, 2016 and 2015, 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. 16 (Continued) GREATER ROANOKE TRANSIT COMPANY (A Component Unit of the City of Roanoke, Virginia) Notes to Basic Financial Statements June 30, 2016 and 2015 (3) Capital Grant Funds (a) Capital Purchases Capital asset purchases have been funded primarily under FTA capital grants to the Company. Additional matching requirements were met by the Commonwealth of Virginia, the City, 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, 2016 and 2015, are as follows: (h) Operations The Company receives operating assistance from the FTA, Commonwealth of Virginia, the City, City of Salem, Virginia, Town of Vinton, Virginia, and New River Valley Metropolitan Planning Organization. During fiscal years 2016 and 2015, the Company also received operating assistance from the Carilion Foundation and Downtown Roanoke, Inc. for its Star Line trolley bus service. The Company also received assistance from Virginia Tech for an expansion of service on the Smart Way Service beginning February 2015. 17 (Continued) Capital Cumulative Outstanding grant funds capital capital received grant funds grant 2016 received amount FTA S 678,650 22,757,764 1,59R834 Commomvcalth of Virginia 98,023 4,533,025 86.595 Cm &R,anoke — 166,985 — New River Valley MPO 76,750 S 776.673 27,534,524 1,677.429 (h) Operations The Company receives operating assistance from the FTA, Commonwealth of Virginia, the City, City of Salem, Virginia, Town of Vinton, Virginia, and New River Valley Metropolitan Planning Organization. During fiscal years 2016 and 2015, the Company also received operating assistance from the Carilion Foundation and Downtown Roanoke, Inc. for its Star Line trolley bus service. The Company also received assistance from Virginia Tech for an expansion of service on the Smart Way Service beginning February 2015. 17 (Continued) Capital Cumulative Outstanding grant funds capital capital received grant funds grant 2015 received amount FTA $ 3,194221 22,079,117 2,089,903 Commor%-alth of Vii einia 827,311 4,435,002 113,187 CA of Roenokc — 166.985 — Nc, Rivrr Vs11cy MPO 76,750 S 4,021532 26.757,854 2,201090 (h) Operations The Company receives operating assistance from the FTA, Commonwealth of Virginia, the City, City of Salem, Virginia, Town of Vinton, Virginia, and New River Valley Metropolitan Planning Organization. During fiscal years 2016 and 2015, the Company also received operating assistance from the Carilion Foundation and Downtown Roanoke, Inc. for its Star Line trolley bus service. The Company also received assistance from Virginia Tech for an expansion of service on the Smart Way Service beginning February 2015. 17 (Continued) GREATER ROANOKE TRANSIT COMPANY (A Component Unit of the City of Roanoke, Virginia) Notes to Basic Financial Statements June 30, 2016 and 2015 (4) Supplies and Materials As of June 30, 2016 and 2015, supplies and materials consisted of the following: (5) Capital Assets The following is a summary of the changes in capital assets, net for the fiscal years ended June H, 2016 and 2015: 2016 2015 Parts S 504,268 463,633 Diesel twl 301752 40,529 Lubricating oil 8,460 5,075 Increases S 543,980 509,237 (5) Capital Assets The following is a summary of the changes in capital assets, net for the fiscal years ended June H, 2016 and 2015: 18 (Continued) Balances Balances June 30, June 30, 2015 Increases Decreases 2016 Capital assets Rat being depreciated: Lend 5 720.724 - - 720.724 Oil... capital assets being deptecated: Madding. Sttucluru and intproeemencs 11,195,615 300,987 (25,050) 11,471,552 Muses 16258.516 56,157 - 16,314,673 Shnp end garage <giiip aent 2345,299 23,686 - 2.768.985 Olken equipment and furnishings 889,478 76,237 - 965,715 Accumulated depreciation (19.804,230) (1.906.722) 25,050 (21,685,902) Net capital assets being depreciated 11,284,678 (1,449,655) 9835,023 Capital asset_ net $ 12.005A02 (1.449,655) 10.555,747 18 (Continued) GREATER ROANOKE TRANSIT COMPANY (A Component Unit of the City of Roanoke, Virginia) Notes to Basic Financial Statements June 30, 2016 and 2015 (6) Deferred Compensation Plan The Company has a deferred compensation plan (see note 1(k)) covering all hourly and salaried employees. The Company contributions to the deferred compensation plan were $111,731 in fiscal year 2016 and $110,794 in fiscal year 2015. (7) Other Liabilities Included in Other Liabilities at June 30, 2016 and 2015 is unearned revenues of $244,289 and $248,418, respectively. (8) Commitments and Contingent Liabilities Contractual Commitments Under the provisions of a management contract with First Group America Company (dba First Transit, Inc.), which became effective on March 1, 2010 and expired June 30, 2015, the Company pays a monthly fee of $24,602 for management services. Total fees paid for the years ended June 30, 2016 and 2015, were $295228 and $286,129, respectively. The Company renewed the contract effective July 1, 2015 and expiring on June 30, 2020. 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 up to 80% of their fair market value on the date of disposition. Capital assets, net, approximating $9.8 million at June 30, 2016, are subject to these grant requirements. 19 (Continued) Balances Balances June 30, June 30, 2014 Increases Decreases 2015 Capital assets not being depreciated: Land $ 720324 - - 720.724 Other capital asscts be g depreciated_ Buildine structures and improvements 10,798,651 396964 - 11,195.66 Buses 18,273293 717,631 (2,732,408) 16,258516 Shop and garage equipment 2,76,015 30,284 - 2745$99 Onice equipment and tumehinas 796.197 93281 - 889478 Accumulated deprecation (20545.673) (1,990,965) 2.732.408 (19,804,230) Nct capital assets being depreciated 12,037,483 (752805) 11,284-678 Capital assets. net $ 12,758,207 (752.805) 12005.402 (6) Deferred Compensation Plan The Company has a deferred compensation plan (see note 1(k)) covering all hourly and salaried employees. The Company contributions to the deferred compensation plan were $111,731 in fiscal year 2016 and $110,794 in fiscal year 2015. (7) Other Liabilities Included in Other Liabilities at June 30, 2016 and 2015 is unearned revenues of $244,289 and $248,418, respectively. (8) Commitments and Contingent Liabilities Contractual Commitments Under the provisions of a management contract with First Group America Company (dba First Transit, Inc.), which became effective on March 1, 2010 and expired June 30, 2015, the Company pays a monthly fee of $24,602 for management services. Total fees paid for the years ended June 30, 2016 and 2015, were $295228 and $286,129, respectively. The Company renewed the contract effective July 1, 2015 and expiring on June 30, 2020. 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 up to 80% of their fair market value on the date of disposition. Capital assets, net, approximating $9.8 million at June 30, 2016, are subject to these grant requirements. 19 (Continued) GREATER ROANOKE TRANSIT COMPANY (A Component Unit of the City of Roanoke, Virginia) Notes to Basic Financial Statements June 30, 2016 and 2015 The Company has agreements with the City of Salem, Virginia and Town of Vinton, Virginia to provide bus service to each locality, 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 .tune 30, 2016 and 2015, totaled $66,473 and $66,722, respectively. Future minimum rental receipts under leases with original terms in excess of one year are as follows: Years ending June 30: 2017 $ 66,759 2018 17.116 $ 83,875 The Company is the lessee in an agreement with a tire manufacturer for the rental of bus tires. The agreement became effective beginning December I, 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 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, 2016 and 2015, rental expense for tires approximated $97,800 and $106,000, respectively. The Company is party to various supply contracts with vendors for Ultra -low Sulfur Diesel fuel that require the purchase of certain minimum volumes per year and set a total number of gallons to be purchased during the terms of the contract. These contracts enable the company to purchase fuel at a fixed - rate price to be used in buses that serve our operating area. The Company's agreements, along with the contract total of gallons to be purchased during the year, are as follows: Minimum Pumhues September 1, 2015 through August 31, 2016 $ 843,820 September 1.20161hrough.lune 30, 2017 466,939 Jul, 1, 2017 through June 30, 2018 615,780 Failure of the Company to meet such annual minimum purchase agreements allows the Company's vendors the option of terminating or not renewing the contracts. Management intends to fully utilize these contracts to ensure fuel for operations is obtained at an efficient market price. Litieation 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. 20 (Continued) GREATER ROANOKE TRANSIT COMPANY (A Component Unit of the City of Roanoke, Virginia) Notes to Basic Financial Statements June 30, 2016 and 2015 Risk Management 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 settled claims have not exceeded the amount of insurance coverage in any of the past three fiscal years. The only outstanding material claim that is probable of an unfavorable outcome is a result of an incident that occurred on a bus in June 2012. The Company's insurance coverage is sufficient to cover this claim. Subsequent Events The Company has evaluated subsequent events for potential recognition and/or disclosure in the .Tune 30, 2016 Basic Financial Statements through November 11, 2016, the date the financial statements were available to be issued. No transactions requiring recognition and /or disclosure have occurred through this date. 21 GREATER ROANOKE TRANSIT COMPANY (A Component Unit of the City of Roanoke, Virginia) Schedule of Expenditures of Federal Awards For the Year Ended June 30, 2016 Passed Through Federal Gtanmr /Pass- Through Grantor/ Program Title or Federal CFDA Identifying to Cluster Title Number Number Subrecipiencv Expenditures Departmmrt of (transportation Find, -1 1 ransit Cl.,let 1 =Y08 I I A Capial A —scace 1 =Y09 F A Capital Assistance I'Y09 PTA Capital AsSiatancc I'Y08 FTA Capital Assistance ARRA - FY 10 11 A Assulance FY 13 FTA Capial Assisancc FY 13 FT Capital Assistance FYI Operating and Capital Assistance I 16 Operating and Capital Atte nnce FY 16 & 17 Operating and Capital Assistance FY 14 1' fA Capital Assistance "I otal federal 'I'tonsil Cluster Fonnola Grants to r Rural Areas Virginia Department of Rail and Public Transportation Y 14 PTA Operating Assistance FY15 FTA Circuiting A .... mass FY I5 F T A Capital Assurance Iota] Formula Grants for- Rural Areas Total Department .1 1 raosporti tlon Grand "total Federal Financial Assistance 20.500 VA -04- 0041 -02 $ 59,005 $ 59.005 20500 VA -04 -0027 -00 40,920 20.500 VA -04- 0046 -00 33,505 20,509 VA- 95-X005-00 28,416 20 507 VA- 96- X010 -01 197,609 20507 VA -95- X123 -00 23,351 20507 VA -95- X132 -00 23,708 20507 VA 90 X416 -00 396 20 507 VA -90- X432 -00 2,019,954 20507 VA- 2016 - 016 -00 405,320 20 526 VA- 34- 0006 -00 26.113 $ 59.005 $ 2.838,297 20.509 VA -18- X034 00 20.509 VA -18- X036 -00 20.509 VA -I8- X038-00 See accompanying notes to schedule of expenditures of federal awards. 22 225,222 68,329 47,986 341537 $ 59.005 $ 3,174834 $ 59,005 $ 3,174834 GREATER ROANOKE TRANSIT COMPANY (A Component Unit of the City of Roanoke, Virginia) Schedule of Expenditures of Federal Awards For the Year Ended June 30, 2016 NOTE A —BASIS OF PRESENTATION The accompanying schedule of expenditures of federal awards (the "Schedule ") includes the federal award activity of the Greater Roanoke Transit Company ( "GRTC ") under programs of the federal government for the year ended June 30, 2016. The information in the Schedule is presented in accordance with the requirements of Title 2 U.S. Cade of Federal Regulations Par[ 200, Uniform Administrative Requirements, Cast Principles, and Audit Requirements for Federal Awards (the "Uniform Guidance "). Because the Schedule presents only a selected portion of the operations of GRTC, it is not intended to and does not present the financial position, changes in net assets, or cash flows of GRTC. NO E B SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance or OMB Circular A -$7, Cast Principles for State, Local, and Indian Tribal Governments, wherein certain types of expenditures are not allowable or are limited as to reimbursement. NOTE C INDIRECT COST RATE GRTC has not elected to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. 23 ON `N% Cherry Bekaert`° No CPAs b Advisors Report of Independent Auditor on Internal Control over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards To the 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 the Greater Roanoke Transit Company (the "Company'), a component unit of the City of Roanoke, Virginia, as of and for the year then ended June 30, 2016, and the related notes to the financial statements, which collectively comprise the Company's basic financial statements and have issued our report thereon dated November 11, 2016, 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 a combination of deficiencies, in internal control such that there is a reasonable possibility that a material misstatement of the entity's financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or, significant deficiencies. Given these limitations, during our audits 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 results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. 24 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. ukwu Roanoke, Virginia November 11. 2016 25 `� Cherry Bekaert- CPAs & Advisors Report of Independent Auditor on Compliance for Each Major Program and on Internal Control over Compliance Required by The Uniform Guidance To the Board of Directors Greater Roanoke Transit Company Report on Compliance for Each Major Federal Program We have audited the Greater Roanoke Transit Company's (the "Company') compliance with the types of compliance requirements described in the OMB Compliance Supplement that could have a direct and material effect on each of the Company's major federal programs for the year ended June 30, 2016. The Company's major federal programs are identified in the summary of auditor's results section of the accompanying schedule of findings and questioned costs. Management's Responsibility Management is responsible for compliance with the requirements of laws, regulations, contracts, and grants applicable to its federal programs. Auditor's Responsibility Our responsibility is to express an opinion on compliance for each of the Company's major federal programs based on our audit of the types of compliance requirements referred to above. We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America, the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States, and the audit requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (the "Uniform Guidance'). Those standards and the Uniform Guidance require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types of compliance requirements referred to above that could have a direct and material effect on a major federal program occurred. An audit includes examining, on a test basis, evidence about the Company's compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion on compliance for each major federal program. However, our audit does not provide a legal determination of the Company's compliance. Opinion on Each Major Federal Program In our opinion, the Company complied, in all material respects, with the types of compliance requirements referred to above that could have a direct and material effect on each of its major federal programs for the year ended June 30, 2016. Report on Internal Control Over Compliance Management of the Company is responsible for establishing and maintaining effective internal control over compliance with the types of compliance requirements referred to above. In planning and performing our audit of compliance, we considered the Company's internal control over compliance with the types of requirements that could have a direct and material effect on each major federal program to determine the auditing procedures that are appropriate in the circumstances for the purpose of expressing an opinion on compliance for each major federal program and to test and report on internal control over compliance in accordance with the Uniform Guidance, but not for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, we do not express an opinion on the effectiveness of the Company's internal control over compliance. 26 A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis. A material weakness in internal control over compliance is a deficiency, or combination of deficiencies, in internal control over compliance, such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of a federal program will not be prevented, or detected and corrected, on a timely basis. A significant deficiency in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance with a type of compliance requirement of a federal program that is less severe than a material weakness in internal control over compliance, yet important enough to merit attention by those charged with governance. Our consideration of internal control over compliance was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control over compliance that might be material weaknesses or significant deficiencies. We did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified. The purpose of this report on internal control over compliance is solely to describe the scope of our testing of internal control over compliance and the results of that testing based on the requirements of the Uniform Guidance. Accordingly, this report is not suitable for any other purpose. U 6tk. Lj-? Roanoke, Virginia November 11, 2016 27 GREATER ROANOKE TRANSIT COMPANY (A Component Unit of the City of Roanoke, Virginia) Schedule of Findings and Questioned Costs Year ended June 30, 2016 A. Summary of Auditor's Results 1. The type of report issued on the financial statements: Unmodified opinion 2. Significant deficiencies in internal control disclosed by the audit of the financial statements: None Reported 3. Material weaknesses: No 4. Noncompliance, which is material to the financial statements: No 5. Significant Deficiencies in internal control over major programs: None Reported 6. Material weaknesses. No 7. The type of report issued on compliance for major programs: Unmodified opinion 8. Any audit findings which are required to be reported under 2 CFR section 200.516(a). No 9. The programs tested as major programs were Name of Program CFDA # Federal Transit Cluster 20.500, 20.507, 20.526 10. Dollar threshold to distinguish between Type A and Type B Programs as described in 2 CFR section 200- 518(b)(1). $750,000 11. The Greater Roanoke Transit Company was determined to be a low risk auditee. B. Findings Relating to the Financial Statements Reported in Accordance with Government Auditing Standards: None C. Findings and Questioned Costs Relating to Federal Awards: None 28 WaIIZVNM NWEErlibm Greater Roanoke Transit Company Roanoke, Virginia February 9, 2017 William D. Bestpitch, President and Members of the Board of Directors Dear President Bestpitch and Members of the Board: Subject: Greater Roanoke Transit Company December 2016 Financial Report The attached report provides financial performance information for December of Fiscal Year (FY) 2017. On a year -to -date basis, Greater Roanoke Transit Company (G RTC) experienced net income of $619,836 an increase of $207,591 compared to the same period in FY 2016. The significant factors affecting financial performance are outlined below. Revenue Total revenue increased 5.3% over the same period last year and is 4.8% above the established budget. Significant factors impacting revenue include: • Fare Revenues decreased approximately 6.6% compared to FY 2016 and are approximately 3.6% below the established budget. • Other Revenues (advertising, building rental, parking, miscellaneous) increased approximately 1% and are 9.7% above the established budget. • Federal and State Revenue increased 10.2% and is performing at a level that exceeds budget expectations. Expenses Total expenses increased 1% compared to FY 2016 and are performing 1.9% below the established budget. Significant factors impacting expenses include: • Labor and Fringe Benefits increased approximately 6% but are performing 1.1% below the established budget. Greater Roanoke Translt Company William D. Bestpitch, President and Members of the Board of Directors GRTC Financials February 9, 2017 Page 2 • Services increased approximately 11.5% but are less than 1% below the established budget. • Materials and Supplies decreased 12.6 %and are 2.3 %below the established budget. • Utilities decreased approximately 1% and are 7.2% below the established budget. • Property insurance decreased 30.1% and is 16.1 °% below the established budget. • Miscellaneous Expense increased approximately 1% and is performing within 1% above the established budget. Respectfully Sub 4 ed, A4c--- 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 SUMMARY OF STATEMENT OF NET POSITION 12/31/2016 12/31/2015 Year -to -Date Year -to -Date %of Change ASSETS CASH $ 594,313.90 $ 824,004.00 -28% ACCOUNTS RECEIVABLE $ 1,206,088.34 $ 1,422,161.90 -15% INVENTORY $ 542,514.26 $ 533,755.50 2% FIXED ASSETS FIXED ASSETS $ 32,617,358.28 $ 32,177,746.97 1% ACCUMULATED DEPRECIATION $ (22,537,121.38) $ (20,758,181.31) 9% NET FIXED ASSETS $ 10,080,236.90 $ 11,419,565.66 -12% PREPAYMENTS $ 131,413.60 $ 78,302.17 68% TOTAL ASSETS $ 12,554,567.00 $ 14,277,789.23 -12% CURRENT LIABILITIES ACCOUNTS PAYABLE $ 374,040.02 $ 476,927.16 -22% PAYROLL LIABILITIES $ 354,473.77 $ 311,640.90 14% OTHER LIABILITIES $ 680,127.48 $ 1,011,948.25 -33% CAPITAL CAPITAL STOCK $ 5.00 $ 5.00 0% GRANTS $ 4,055,222.10 $ 4,271,876.60 -5% DEPRECIATION EXPENSE $ (851,219.70) $ (953,951.88) -11% RETAINED EARNINGS $ 6,998,686.59 $ 8,399,814.27 -17% CAPITAL CONTRIBUTIONS $ 323,396.00 $ 347,284.00 -7% NET INCOME (LOSS) $ 619,835.74 $ 412,244.93 50% TOTAL CAPITAL $ 11,145,925.73 $ 12,477,272.92 -11% TOTAL LIABILITIES & CAPITAL $ 12,554,567.00 $ 14,277,789.23 -12% GREATER ROANOKE TRANSIT COMPANY SOUTHWESTERN VIRGINIA TRANSIT MANAGEMENT COMPANY Operating Revenue and Expense Statement For the Six Months Ending December 31, 2016 OPERATING EXPENSES Labor - Hourly &Salary Fringe Benefits Services Materials & Supplies Utilities Insurance Costs Miscellaneous Expenses Total Expenses FY 2017 December FY 2016 December FY 17 BUDGET TOTAL % FY 17 BUDGET 48.10% $9,367,643.00 $4,460,434.02 OPERATING INCOME Net LOSS ($3,388,669.01) ($3,273,942.03) ($7,021,839.00) Operating Revenue Non - Transportation Revenues Total Income $984,308.23 133224.47 $1,054,248.23 132.243.76 $2,122,720.00 223.064.00 46.37% 5932% $1,117,532.70 $1,186,491.99 $2,345,804.00 47.64% OPERATING EXPENSES Labor - Hourly &Salary Fringe Benefits Services Materials & Supplies Utilities Insurance Costs Miscellaneous Expenses Total Expenses $1,893,436.95 829,148.90 290,231,86 601,688.98 112,335.35 128,815.52 650.544.15 $1,832,083.05 736,547.11 260,292.27 688,657.45 113,359.89 184,337.11 645.15714 $3,756,673.00 1,804,992.00 589,465.00 1,261,734.00 262,212.00 379,475.00 1313092.00 50.40% 45.94% 49.24% 47.69% 42.84% 33.95% 49.54% 48.10% $9,367,643.00 $4,460,434.02 $4,506,201.71 Net LOSS ($3,388,669.01) ($3,273,942.03) ($7,021,839.00) 48.26% Local Grants State Grants Federal Grants Total Subsidies $1,151,553.75 1,080,040.00 1,776t 911.00 $1,093,328.96 047,618.00 1,745,240.00 $2,312,924.00 1,709,287.00 2999 628.00 49.79% 63.19% 5924% 57.09% $7,021,839.00 $3,686,186,96 $4,008,504.75 Net Income(loss) $619835.74 $412244.93 GREATER ROANOKE TRANSIT COMPANY BOARD OF DIRECTORS January 12, 2017 William D. Bestpitch, President, and Members of the Greater Roanoke Transit Company Board of Directors Dear President Bestpitch and Members of the Board: The regular meeting of the Greater Roanoke Transit Company Board of Directors will be held on Tuesday, January 17, 2017, 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, Stephanie M. Moon Reynolds Secretary PC: Christopher P. Morrill, Vice President of Operations, GRTC Daniel J. Callaghan, General Counsel, GRTC Barbara A. Dameron, Treasurer, GRTC Troy A. Harmon, Municipal Auditor Sherman M. Stovall, Assistant Vice President of Operations, GRTC Laura M. Carini, Assistant General Counsel, GRTC Carl L. Palmer, General Manager, Valley Metro, P. O. Box 13247, Roanoke, Virginia 24032 Kevin Price, Assistant General Manager, Valley Metro, P. O. Box 13247, Roanoke, Virginia 24032 Stephanie Giles, Director of Finance, Valley Metro, P. O. Box 13247, Roanoke, Virginia 24032 K \GRTC17Wanuary 17. 2017 Meeting Notee doc GREATER ROANOKE TRANSIT COMPANY BOARD OF DIRECTORS January 17, 2017 1:00 P.M. EOC CONFERENCE ROOM ROOM 159 AGENDA Call to Order -- Roll Call. All present. 2. Approval of Minutes: Regular meeting of GRTC held on Monday, November 21, 2016. Without objection by the Board, the President dispensed with the reading of the minutes and approved as recorded. 3. Reports of Officers: a. General Manager: Management Update: • Roanoke Valley Transit Vision Plan • Smart Way Commuter Service • STAR Service • Ridership Without objection, Management Update was received and filed. 2. Financial Report for the month of November 2016. Without objection, Financial Report was received and filed. 3. Authorization to file grants for Federal Transit Administration Operating and Capital Financial Assistance and Commonwealth of Virginia Operating and Capital Financial Assistance for Fiscal Year 2017 -2018. Adopted Resolution. (7 -0) 4. Other Business: General Manager updated the Board on the status of the WalMart Shelter. 5. The next meeting will be held on Monday, March 20, 2017 at 1:00 p.m. in the EOC Conference Room, Room 159, first floor, Noel C. Taylor Municipal Building. 6. Adjournment — 1:44 p.m. K'. \GRTC - Action Agenda@D1%anuary 17, 2017 Action Agenda.doc 3.0.. I v411ey 11V11qWNWMW Greater Roanoke Transit Company Board of Directors Meeting Management Update January 17, 2017 Planning and Special Projects Roanoke Valley Transit Vision Plan ( RVTVP) On January 4, 2017, GRTC staff along with the Transportation Planning Organization's (TPO) staff met with Stantec, the consultants engaged by Roanoke County to develop the 419 Towne Center Plan. The focus of the meeting was to review Slantec's recommendations and discuss how best the RVTVP can interface with and support the recommendations and the County's overall Plan. The January 41" meeting was a follow up to the October 12, 2016 meeting reported in the November 2016 Update. Staff made an inquiry to Roanoke County about their interest in moving forward with selected service enhancements identified in the RVTVP. It is anticipated that a meeting will be scheduled to review options for moving forward. Smart We GRTC staff has begun evaluating ridership productivity for Smart Way's non -peak period mid -day and evening trips. Preliminary assessments indicate that an average of seven (7) passengers per trip for each of two (2) trips operating between the hours of 11:30 a.m. and 2:00 p.m. and an average of five (5) passengers for one (1) trip operating between the hours 6:00 p.m. and 9:45 p.m. are 42% and 59 %, respectively, below the overall average of twelve (12) passengers per trip for the Smart Way's daily weekday trips. Staff will continue to evaluate the productivity of these mid -day trips and the potential cost savings if discontinued. The Board will be advised accordingly. STAR Service Currently, GRTC's STAR service has a monthly fare pass program policy that affords STAR users unlimited rides each month. In an effort to contain cost, management has been evaluating the cost impact of the unlimited rides policy and whether or not to set a reasonable limit on the number of rides allowed per month, per pass holder. Based on a sample of riders and trips taken over an 11 month period, between January and November 2015, the following is a summary of the management's findings thus far: 1) Out of 1,198 eligible STAR riders in the sample, 58 or 5% were pass holders; 2) Out of 76,279 trips taken during the 11 month sampling period, 22,931 or 30% were taken by pass- holders, 3) Based on an average use of 32 trips at a cost of $3.00 per trip over 26 service days per month, the STAR monthly pass is currently priced at $96. Consideration is being given to imposing a limit of 52 trips per month. Greater Roanoke Transit Company PO Box 13247 • Roanoke, Virginia 24032 • Phone: 540.982.0305 • fax:540.982.2703 • www.valleymetro.com 4) Only seven (7) or 12% of the 58 pass holders in the sample had monthly trip levels exceeding the hypothetical 52 trip limit, ranging from a low of six (6) trips to a high of 60 trips over. Management will continue to monitor the rate of use among pass holders and evaluate the merits of recommending a pass use limit policy as means to contain cost. Fiscal 2017 Ridership Overall, ridership for FY 2017 year to date as of November, 2016 is 3% below FY 2016.On average for the same period, ridership for transit systems throughout the state is down 21 %. GRTC's ridership percentage change for November year to date for FY17 compared to November year to date for FY16 for each GRTC service type is detailed below: Fixed Route: (3.3 %) Smart Way: (11.8 %) Smart Way Connector: +1.7% Star Line Trolley: (7.5 %) STAR: +1.6% Respe 01fuled, C rl General Manager Copy: Vice President of Operations Assistant Vice President of Operations Treasurer Secretary GRTC General Counsel Municipal Auditor Town of Vinton 311 S. Pollard Street Vinton, VA 24179 Phone (540) 9830607 Fax (540) 983 -0646 VINTON January 17, 2017 Greater Roanoke Transit Company c/o Mayor Sherman P. Lea, Sr., President 215 Church Avenue, SW, Room 452 Roanoke, VA 2401 1 -1594 Dear Mayor Lea and Members of the Board: Harry W. Thompson Town Manager The Vinton Town Council has had discussions with Valley Metro staff and Mr. Sherman Stovall, Assistant City Manager with the City of Roanoke regarding Fixed Bus ridership and STARS service in Vinton over the last several months. In November a meeting was held with Valley Metro Staff, Mr. Stovall, the Vinton Town Council Finance Committee and Town Staff to detail specific questions that Council wanted addressed. As a result of this meeting, Mr. Stovall and Mr. Palmer agreed to conduct a ridership survey for the Town of Vinton routes in January and February of 2017. This survey was to begin on Monday, January 9, 2017. The Town is looking forward to obtaining the information from this survey, as the results will assist with our upcoming FYI budget discussions. Mr. Stovall has indicated his willingness to meet with the Town after the January information has been compiled and then again after the February information has been compiled. The second major topic that the Finance Committee recently discussed with Valley Metro staff and Mr. Stovall related to the STAR unlimited pass. The Town has expressed concern about the STAR unlimited pass and the impact it is having on our budget expenditures. In reviewing our current utilization of STAR services, we see patterns of high utilizations by a few riders. This unlimited number of rides on the pass is driving our cost to approximately 40% of our Fixed Bus Service. With a small municipal budget such as the Town of Vinton, we have been forced to cut or even eliminate services to balance our budget. Accordingly, we are requesting that the Board consider measurers to limit the number of rides on the STAR pass. Our hope is that limiting the rides per month on the pass will reduce our expenditures for this program and it will become a more cost effective and consistent budget item to forecast. We want the Board to know that we really appreciate Valley Metro working with the Town of Vinton on the ridership survey and respectfully request that the Board consider the Town's request for limiting the number of rides on the STAR pass. If you have any questions, please feel free to contact me at 540- 983 -0607. Regards, Barry Thompson cc: Mayor and Members of Council Richard W. Peters, Assistant Town Manager/Director of Economic Development Anne W. Cantrell, Treasurer /Finance Director M Greater Roanoke Transit Company Roanoke, Virginia January 17, 2017 William D. Bestpitch, President and Members of the Board of Directors Dear President Bestpitch and Members of the Board: Subject: Greater Roanoke Transit Company November 2016 Financial Report The attached report provides financial performance information for November of Fiscal Year (FY) 2017. On a year -to -date basis, Greater Roanoke Transit Company (GRTC) experienced net income of $479,934 an increase of $159,149 compared to the same period in FY 2016. The significant factors affecting financial performance are outlined below. Revenue Total revenue increased 5.5 °% over the same period last year and is 4.2% above the established budget. Significant factors impacting revenue include: • Fare Revenues decreased approximately 6.2% compared to FY 2016 and are approximately 3.1 °% below the established budget. • Other Revenues (advertising, building rental, parking, miscellaneous) increased 4.6 °%and are 8 °% above the established budget. • Federal and State Revenue increased 10.4 °% and is performing at a level that exceeds budget expectations. Expenses Total expenses increased 1.7 °% compared to FY 2016 and are performing within 1% of the established budget. Significant factors impacting expenses include: • Labor and Fringe Benefits increased approximately 6.3 °% but are performing within 1% of the established budget. Greater Roanoke Transit Company William D. Bestpitch, President and Members of the Board of Directors GRTC Financials January 17, 2017 Page 2 • Services increased approximately 10.8 °% but are less than 1 °% above the established budget. • Materials and Supplies decreased 11.3° %and are within 1% of the established budget. • Utilities decreased 5% and are approximately 6.6 °% below the established budget. • Property insurance decreased 29.7 °% and is 13.2% below the established budget. • Miscellaneous Expense increased 3.5 °% and is performing within l °% above the established budget. Respectfully Su6mi ed, 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 Five Months Ending November 30, 2016 FY FY FY 17 2017 2016 BUDGET % FY 17 November November TOTAL BUDGET OPERATING INCOME Operating Revenue $819,337.88 $873,567.48 $2,122,720.00 38.60% Non - Transportation Revenues 110904.99 106035.64 223,084.00 49.71% Total Income $930,242.87 $979,603.12 $2,345,804.00 39,66% OPERATING EXPENSES Labor - Hourly &Salary $1,607,700.62 $1,558,149.37 $3,756,673.00 42.80% Fringe Benefits 695,449.47 608,147.34 1,804,992.00 38.53% Services 246,849.95 222,726.44 589,465.00 41.88% Materials & Supplies 513,256.30 578,661.65 1,261,734.00 40.68% Utilities 92,013.79 96,847.67 262,212.00 35.09% Insurance Costs 108,044.43 153,702.06 379,475.00 28.47% Miscellaneous Expenses 554,832.45 536,206.05 1313092.00 42.25% Total Expenses $3,818,147.01 $3,754,440.58 $9,367,643.00 40.76% Net Loss ($2,887,904.14) ($2,774,837.46) ($7,021,839.00) 41.13% Local Grants $957,380.60 $912,598.93 $2,312,924.00 41.39% State Grants 899,187.00 706,028.00 1,709,287.00 52.61% Federal Grants 1511,271.00 1,476,996.00 2999628.00 50.38% Total Subsidies $3,367,838,60 $3,095,622.93 $7,021,839.00 47.96% Net Income (loss) $479,934.46 $320.785.47 GREATER ROANOKE TRANSIT COMPANY SUMMARY OF STATEMENT OF NET POSITION 11/30/2016 11/30/2015 Year -to -Date Year -to -Date %of Change ASSETS CASH ACCOUNTS RECEIVABLE INVENTORY FIXED ASSETS FIXED ASSETS ACCUMULATED DEPRECIATION NET FIXED ASSETS PREPAYMENTS TOTAL ASSETS CURRENT LIABILITIES ACCOUNTS PAYABLE PAYROLL LIABILITIES OTHER LIABILITIES CAPITAL CAPITAL STOCK GRANTS DEPRECIATION EXPENSE RETAINED EARNINGS CAPITAL CONTRIBUTIONS NET INCOME (LOSS) TOTAL CAPITAL TOTAL LIABILITIES & CAPITAL $ 618,023.70 $ 610,412.82 1% $ 1,352,488.23 $ 1,782,515.31 -24% $ 546,380.06 $ 520,080.89 5% $ 32,600,980.42 $ 32,169,846.95 1% $ (22,394,464.48) $ (20,598,695.58) 9% $ 10,206,515.94 $ 11,571,151.37 -12% $ 92,729.17 $ 102,007.22 -9% $ 12,816,137.10 $ 14,586,167.61 -12% $ 395,428.07 $ $ 386,924.31 $ 4,055,222.10 2% $ 355,043.05 -5% $ 365,236.00 (794,466.15) -3% $ 943,720.63 $ $ 1,310,111.11 $ 296,660.00 -28% $ 5.00 $ 5.00 0% $ 4,055,222.10 $ 4,271,876.60 -5% $ (708,562.80) $ (794,466.15) -11% $ 6,998,686.59 $ 8,399,814.27 -17% $ 296,660.00 $ 325,881.00 -9% $ 479,934.46 $ 320,785.47 50% $ 11,121,945.35 $ 12,523,896.19 -11% $ 12,816,137.10 $ 14,586,167.61 -12% GREATER ROANOKE TRANSIT COMPANY BOARD OF DIRECTORS January 19, 2017 Carl L. Palmer, General Manager Valley Metro P. O. Box 13247 Roanoke, Virginia 24032 Dear Mr. Palmer: I am enclosing 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 2017 -2018 with the Federal Transit Administration and the Commonwealth of Virginia Department of Rail and Public Transportation upon certain terms and conditions. The abovementioned resolution was adopted by the Board of Directors at its regular meeting held on Tuesday, January 17, 2017. Sincerely, Cecelia F. McCoy Assistant Secretary PC: Christopher P. Morrill, Vice - President of Operations Sherman M. Stovall, Assistant Vice - President of Operations Barbara A. Dameron, Treasurer Daniel J. Callaghan, General Counsel Laura Carini, Assistant General Counsel Troy A. Harmon, Municipal Auditor Stephanie M. Moon Reynolds, Secretary J�L./ 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 2017- 2018 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 2017 -2018 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 17, 2017. The Company's Secretary is also authorized to attest any such documents. ATTEST: Date Adopted: 17 'LD 1 7 W pM. Moon Reyno d, c y ;.a.y M Greater Roanoke Transit Company Board of Directors Meeting Action Item January 17 2017 The Honorable William D. Bestpitch, President, and Members and Officers of the Board of Directors Greater Roanoke Transit Company Roanoke, Virginia Dear President Bestpitch 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 2017 -2018. 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 2017 -2018 GRTC will apply for the maximum amount allowed in federal operating and capital financial assistance. During the current 2016 -2017 fiscal year, the total amount of assistance GRTC will receive from FTA is approximately $2,686,423; the total amount of assistance GRTC will receive from VDRPT is approximately $2,166,934. The deadline for fling the applications for the above referenced assistance for FY 2017 -2018 is February 1, 2017 Recommendation Authorize the General Manager to file applications requesting the maximum operating and capital financial assistance from FTA and VDRPT for fiscal year 2017 -2018 and to accept and execute the necessary grant agreements in a form approved by legal counsel. Res e!�- Carl L. General Manager 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 ez�ativa � -aaw �J= ey Greater Roanoke Transit Company Roanoke, Virginia March 2, 2017 William D. Bestpitch, President and Members of the Board of Directors Dear President Bestpitch and Members of the Board: Subject: Greater Roanoke Transit Company January 2017 Financial Report The attached report provides financial performance information for January of Fiscal Year (FY) 2017. On a year -to -date basis, Greater Roanoke Transit Company (G RTC) experienced net income of $743,245 an increase of $265,089 compared to the same period in FY 2016. The significant factors affecting financial performance are outlined below. Revenue Total revenue increased 5.4% over the same period last year and is 5.2% above the established budget. Significant factors impacting revenue include: • Fare Revenues decreased approximately 4.1% compared to FY 2016 and are approximately 4.2% below the established budget. • Other Revenues (advertising, building rental, parking, miscellaneous) increased less than 1% but are 11.5% above the established budget. • Federal and State Revenue increased 8.2% and is performing at a level that exceeds budget expectations. Expenses Total expenses increased less than 1% compared to FY 2016 and are performing 2.7% below the established budget. Significant factors impacting expenses include: • Labor and Fringe Benefits increased approximately 6.1% but are performing 1.4% below the established budget. • Services increased approximately 5.8% but are 2.4% below the established budget. Greater Roanoke Transit Company William D. Bestpitch, President and Members of the Board of Directors GRTC Financials March 2, 2017 Page 2 • Materials and Supplies decreased 14.6% and are 4.5% below the established budget. • Utilities increased approximately less than 1% but are 5.9% below the estabI ished budget. • Property insurance decreased 29.3% and is 18.9% below the established budget. • Miscellaneous Expense increased approximately 1.9% but is 1.3% below the established budget. Respectfully Submitted, 1o_^ 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 Seven Months Ending January 31, 2017 FY FY FY 17 2017 2016 BUDGET % FY 17 January January TOTAL BUDGET OPERATING INCOME Operating Revenue $1,148,488.93 $1,197,486.95 $2,122,720.00 54.10% Non - Transportation Revenues 155,676.57 155,266.26 223084.00 69.78% Total Income $1,304,165.50 $1,352,753.21 $2,345,804.00 55.60% OPERATING EXPENSES Labor - Hourly &Salary $2,176,720.83 $2,095,042.31 $3,756,673.00 57.94% Fringe Benefits 989,971.99 888,43269 1,804,992.00 54.85% Services 329,500.97 311,307.49 589,465.00 55.90% Materials & Supplies 679,759.88 796,099.74 1,261,734.00 53.88% Utilities 137,410.48 136,768.93 262,212.00 52.40% Insurance Costs 149,586.81 211,432.07 379,475.00 39.42% Miscellaneous Expenses 749070.26 735.453.74 1313,092.00 57.05% Total Expenses $5,212,021.22 $5,174,541.97 $9,367,643.00 55.64% Net Loss ($3,907,855.72) ($3,821,78876) ($7,021,839.00) 55.65% Local Grant. $1,340,86114 $1,271,847.53 $2,312,924.00 57.97% State Grants 1,258,994.00 988,105.00 1,709,287.00 73.66% Federal Grants 2.051.244.00 2,039,993.00 2,999,628.00 68.38% Total Subsidies $4,651,101.14 $4,299,945.53 $7,021,839.00 66.24% Net Income (1055) $743.245.42 $476156.77 GREATER ROANOKE TRANSIT COMPANY SUMMARY OF STATEMENT OF NET POSITION 1/31/2017 1/31/2016 Year -to -Date Year -to -Date %of Change ASSETS CASH $ 1,703,968.58 $ 1,205,071.43 41% ACCOUNTS RECEIVABLE $ 809,093.99 $ 686,438.92 18% INVENTORY $ 547,345.68 $ 516,146.24 6% FIXED ASSETS FIXED ASSETS $ 32,640,711.01 $ 32,189,621.17 1% ACCUMULATED DEPRECIATION $ (22,679,321.45) $ (20,918,663.52) 8% NET FIXED ASSETS $ 9,961,389.56 $ 11,270,957.65 -12% PREPAYMENTS $ 97,981.58 $ 118,906.20 -18% TOTAL ASSETS $ 13,119,779.39 $ 13,797,520.44 -5% CURRENT LIABILITIES ACCOUNTS PAYABLE $ 242,264.06 $ 351,585.72 -31% PAYROLL LIABILITIES $ 354,147.45 $ 322,441.00 10% OTHER LIABILITIES $ 1,390,281.54 $ 730,227.17 90% CAPITAL CAPITAL STOCK $ 5.00 $ 5.00 0% GRANTS $ 4,055,222.10 $ 4,271,876.60 -5% DEPRECIATION EXPENSE $ (993,41937) $ (1,114,434.09) -11% RETAINED EARNINGS $ 6,998,686.59 $ 8,399,814.27 -17% CAPITAL CONTRIBUTIONS $ 329,347.00 $ 357,848.00 -8% NET INCOME (LOSS) $ 743,245.42 $ 478,156.77 55% TOTAL CAPITAL $ 11,133,086.34 $ 12,393,266.55 -10% TOTAL LIABILITIES & CAPITAL $ 13,119,779.39 $ 13,797,520.44 -5% 1� �v�rfu� bz -aeu �i� �n0 Greater Roanoke Transit Company Roanoke, Virginia March 30, 2017 William D. Bestpitch, President and Members of the Board of Directors Dear President Bestpitch and Members of the Board: Subject: Greater Roanoke Transit Company February 2017 Financial Report The attached report provides financial performance information for February of Fiscal Year (FY) 2017. On a year -to -date basis, Greater Roanoke Transit Company (GRTC) experienced net income of $766,891, an increase of $224,723 compared to the same period in FY 2016. The significant factors affecting financial performance are outlined below. Revenue Total revenue increased 4.5% over the same period last year and is 5.3% above the established budget. Significant factors impacting revenue include: • Fare Revenues decreased approximately 4.5% compared to FY 2016 and are approximately 5.2% below the established budget. • Other Revenues (advertising, building rental, parking, miscellaneous) increased 5.3% compared to the prior year and are 14.2% above the established budget. • Federal and State Revenue increased 7.7% and is performing at a level that exceeds budget expectations. Expenses Total expenses increased 1.1% compared to FY 2016 and are performing 2.9% below the established budget. Significant factors impacting expenses include: • Labor and Fringe Benefits increased approximately 6° %but are performing 1.5 %belowthe established budget. • Services increased approximately 4.6 %, but are 4.1% below the established budget. Greater Roanoke Transit Company William D. Bestpitch, President and Members of the Board of Directors G RTC Financials March 30, 2017 Page 2 • Materials and Supplies decreased 11.6% and are 2.6% below the established budget. • Utilities decreased approximately 2.8% and are 6.4% below the established budget. • Property insurance decreased 29.6% and is 21.8 °% below the established budget. • Miscellaneous Expense increased approximately 3 %, but is 2.3% below the established budget. 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 SUMMARY OF STATEMENT OF NET POSITION 2/28/2017 2/29/2016 Year -to -Date Year -to -Date % of Change ASSETS CASH $ 1,934,989.66 $ 988,302.33 96% ACCOUNTS RECEIVABLE $ 846,515.31 $ 981,500.72 -149/. INVENTORY $ 519,380.62 $ 534,680.62 -3% FIXED ASSETS FIXED ASSETS $ 32,640,711.01 $ 32,197,560.00 1% ACCUMULATED DEPRECIATION $ (22,821,238.56) $ (21,077,999.27) 8% NET FIXED ASSETS $ 9,819,472.45 $ 11,119,560.73 -12% PREPAYMENTS $ 64,549.76 $ 75,570.37 -15% TOTAL ASSETS $ 13,184,907.80 $ 13,699,614.77 -4% CURRENT LIABILITIES ACCOUNTS PAYABLE $ 380,378.09 $ 236,431.64 61% PAYROLL LIABILITIES $ 348,061.27 $ 332,966.78 5% OTHER LIABILITIES $ 1,441,653.98 $ 829,318.01 74% CAPITAL CAPITAL STOCK $ 5.00 $ 5.00 0% GRANTS $ 4,055,222.10 $ 4,271,876.60 -5% DEPRECIATION EXPENSE $ (1,135,336.88) $ (1,273,769.84) -11% RETAINED EARNINGS $ 6,998,686.59 $ 8,399,814.27 -17% CAPITAL CONTRIBUTIONS $ 329,347.00 $ 360,805.00 -9% NET INCOME (LOSS) $ 766,890.65 $ 542,167.31 41% TOTAL CAPITAL $ 11,014,814.46 $ 12,300,898.34 -10% TOTAL LIABILITIES & CAPITAL $ 13,184,907.80 $ 13,699,614.77 -4% GREATER ROANOKE TRANSIT COMPANY SOUTHWESTERN VIRGINIA TRANSIT MANAGEMENT COMPANY Operating Revenue and Expense Statement For the Eight Months Ending February 28, 2017 FY FY FY 17 2017 2016 BUDGET % OF FY 17 February February TOTAL BUDGET OPERATING INCOME Operating Revenue $1,305,498.30 $1,367,581.82 $2,122,720.00 61.50% Non - Transportation Revenues 180,336.89 171,259.73 223,084.00 80.84% Total Income $1,485,83519 $1,538,841.55 $2,345,804.00 63.34% OPERATING EXPENSES Labor - Hourly&Salary $2,467,663.74 $2,368,422.26 $3,756,673.00 65.69% Fringe Benefits 1,154,831.64 1,049,473.25 1,804,992.00 63.98% Services 368,619.49 352,370.46 589,465.00 62.53% Materials & Supplies 808,934.97 914,612.18 1,261,734.00 64.11% Utilities 157,964.60 162,551.81 262,212.00 60.24% Insurance Costs 170,357.90 242,067.12 379,475.00 44.89% Miscellaneous Expenses 845833.28 821,189.20 1313.092.00 64.42% Total Expenses $5,974,201 $5,910,686.28 $9,367,643.00 63.77% Net LOSS ($4,488,370.43) ($4,371,844.73) ($7,021,839.00) 63.92% Local Grants $1,531,909.21 $1,455,409.04 $2,312,924.00 66.23% State Grants 1,438,902.87 1,129,619.00 1,701 84.18% Federal Grants 2284449.00 2,328,984.00 2,999,628.00 76.16% Total Subsidies $5,255,261.08 $4,914,012.04 $7,021,839.00 74.84% Net Income (loss) $766,890.65 $542,167.31 GREATER ROANOKE TRANSIT COMPANY BOARD OF DIRECTORS March 21, 2017 Sherman M. Stovall, Assistant Vice - President of Operations Barbara A. Dameron, Treasurer Michael Shockley, Board Member Curtis Mills, Board Member Dear Ms. Dameron and Gentlemen: At a regular meeting of the Board of Directors of the Greater Roanoke Transit Company which was held on Monday, March 20, 2017, you were reappointed as members of the Fiscal Year 2017 -2018 Budget Review Committee. Sincerely, Q) Yvt Q- Stephanie M. Moon Reynolds Secretary PC: Carl L. Palmer, General Manager, Valley Metro, P. O. Box 13247, Roanoke, Virginia 24032 Kevin Price, Assistant General Manager, Valley Metro, P. O. Box 13247, Roanoke, Virginia GREATER ROANOKE TRANSIT COMPANY BOARD OF DIRECTORS March 16, 2017 William D. Bestpitch, President, and Members of the Greater Roanoke Transit Company Board of Directors Dear President Bestpitch and Members of the Board: The regular meeting of the Greater Roanoke Transit Company Board of Directors will be held on Monday, March 20, 2017, 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, Stephanie M. Moon Reynolds Secretary PC: Christopher P. Morrill, Vice President of Operations, GRTC Daniel J. Callaghan, General Counsel, GRTC Barbara A. Dameron, Treasurer, GRTC Troy A. Harmon, Municipal Auditor Sherman M. Stovall, Assistant Vice President of Operations, GRTC Laura M. Carini, Assistant General Counsel, GRTC Carl L. Palmer, General Manager, Valley Metro, P. O. Box 13247, Roanoke, Virginia 24032 Kevin Price, Assistant General Manager, Valley Metro, P. O. Box 13247, Roanoke, Virginia 24032 Stephanie Giles, Director of Finance, Valley Metro, P. O. Box 13247, Roanoke, Virginia 24032 KIGRTC.17Wanuary 17, 2017 Meeting Noticedoc GREATER ROANOKE TRANSIT COMPANY BOARD OF DIRECTORS March 20, 2017 1:00 P.M. EOC CONFERENCE ROOM ROOM 159 AGENDA Call to Order -- Roll Call. Directors Karen Michalski - Karney and Michael Shockley were absent. Approval of Minutes: Regular meeting of GRTC held on Tuesday, January 16, 2017. Without objection, the reading of the minutes were dispensed and approved as recorded. 3. Reports of Officers: a. General Manager: I. Management Update Planning and Special Projects o Roanoke Valley Transit Vision Plan (RVTP) • Virginia State "Roadeo" • Comprehensive Operational Analysis (COA) and Bus Replacement Local Match Requirements Federal Transit Administration (FTA) Withholding Five Percent (5 %) of Operating Assistance Job Access and Reverse Commute Program (JARC) Fiscal 2017 Ridership Without objection, the Management Update was received and filed. 2. Presentation with regard to a Prospective Fare Increase. Pending Public hearing to be scheduled regarding proposed fare increase. 3. STAR Pass Program Update. Without objection, Update received and filed. L:\ CLERK \DATAl Mm001\GRTC.17W.rch 20. 2017 Action Ape da.doc 4. Appointment of two members of the Board and two officers of the Company to serve as the Fiscal Year 2017 -2018 Budget Review Committee to review the proposed budget. Reappointed Treasurer and Assistant Vice - President Operations; and Directors Michael Shockley and Curtis Mills to serve as the Fiscal Year 2017 -2018 Budget Review Committee. 4. Secretary: a. Establish the Annual Meeting of the GRTC Stockholders to be held on Monday, June 19, 2017, at 1:30 p.m., in the City Council Chamber. Without objection, the communication was received and filed. 5. Other Business. None. ANNOUNCEMENT: Next Meeting: May 15, 2017 at 1:00 p.m., in the EOC Conference Room 6. Adjourn. 1:51 P.M. L: \CLERK \DATA\smmoon \GRTC.17 \March 20, 2017 Action Agenda.doc Lj:zw sj -a+3u Li. Vo��ey M Greater Roanoke Transit Company Board of Directors Meeting Management Update March 20, 2017 Planning and Special Projects Roanoke Valley Transit Vision Plan (RVTVVp) In the January 2017 Update, staff indicated that it anticipated a meeting would be scheduled with Roanoke County to review the RVTVP and explore options for moving forward. On February 7, 2017, GRTC's General Manager and Assistant General Manager, and Roanoke Assistant City Manager met with the Roanoke County Administrator and staff to discuss the possibility of moving forward with some of the short- term recommendations in the RVTVP. The discussion focused on the possibility and timing of moving forward with service improvements that would be "quick wins," such as the Bonsack, Clearbrook, and Route 419 corridors. At this time, Roanoke County would like to focus on completing plans for the for the Route 419 corridor, specifically Tanglewood Mall redevelopment plans and then focus on providing transit services. Virginia State °Roadeo" On April 7- 9, 2017 (Friday - Sunday), GRTC will host the 2017 state -wide bus "Roadeo" competition. Up to 23 transit systems are expected to participate. The competition will be conducted on the parking of the Berglund Center; the Hotel Roanoke and Conference Center will be the host hotel. Comprehensive Operational Analysis (COA) and Bus Replacement Local Match Requirements Staff is planning to conduct a COA on GRTC's fixed route urban and commuter services. The COA will serve to assess and analyze GRTC's current service delivery network and recommend improvements within the context of implementing the recommendations set forth in the Roanoke Valley Transit Vision Plan ( RVTVP). The local match requirement for the pending Virginia Department of Rail and Public Transportation (DRPT) grant supporting the GOA is $150,000, 50% of the anticipated cost to conduct the COA. Staff is in the process of formulating plans to replace ten (10) buses and two (2) Star Line trolleys at an estimated cost of $5,170,000. The local match requirement for the pending DRPT grant of $3,515,600 is $1,654,400. Regional Surface Transportation Program funds through the Roanoke Valley - Alleghany Regional Commission's Transportation Planning Organization will cover $1,447,600 of the local match, with the remaining $206,800 coming from GRTC ($145,000) and the City of Roanoke ($61,800). Federal Transit Administration (FTA) Withholding Five Percent (5 %) of Operating Assistance In an electronic mail (e -mail) message, dated February 14, 2017, the Board was advised that FTA set a deadline of February 9, 2017 for the Governors of Maryland and Virginia and the Mayor of the District of Columbia (D.C.) to establish a State Safety Oversight Program and Agency (SSOP /SSOA), as certified by FTA, for the We Metropolitan Area Transit Authority's (WMATA) Metrorail. Failure to do so would result in withholding 5% of federal fiscal year 2017 formula funds for operating assistance for all transit systems in Virginia, Maryland, and D.C. There are 23 systems affected by FTA's withholding actions having a financial impact of $8.9 million; thirteen (13), 57 %, of these systems are in Virginia. Greater PO Box 13247 a Roanoke, Virginia 24032 - Phone:540-982.0305 - Company Fax: 40 982.2703 a www,valleymetro.com Except for enabling legislation necessary to set up the FTA required SSOP passed by the D.C. Council, no meaningful action has been taken by any of the three jurisdictions. City Administration has been advised that it could take up to nine (9) months for the three jurisdictions to come into compliance. The impact on GRTC's fiscal 2018 budget is $ 77,346 of operating assistance that will be withheld. FTA advises that additional funds allocated for Fiscal Year 2018 drawdowns will also be subject to withholding if the jurisdictions persist in failing to comply with FTA's directive. For GRTC, this could result in an additional $52,654, totaling $130,000 in Fiscal Year 2018 operating assistance that could be withheld. It is anticipated that the Commonwealth of Virginia Department of Rail and Public Transportation will provide funding if cash flow problems occur. Job Access and Reverse Commute Program (JARC) The JARC program was established by the Federal Transit Administration (FTA) to address the unique transportation challenges faced by persons seeking to access and maintain employment. For several years Roanoke Area Dial -A -Ride (RADAR) the operator of GRTC's Specialized Transit Arranged Rides (STAR) paratransit service has been the grantee of JARC funding. As the grantee, RADAR charged GRTC 50% of its cost per trip for eligible STAR passengers. Effective fiscal year 2018, the JARC program will end. This will have an adverse financial impact on jurisdictions served by STAR. Specifically, Roanoke's expenses will increase by an estimated $150,000; Salem's by $42,266; Vinton's by $4,674. Fiscal 2017 Ridership Overall, ridership for FY 2017 year to date as of January, 2017 is 3% below FY 2016. GRTC's ridership percentage change for January year to date for FY17 compared to January year to date for FY16 for each GRTC service type is detailed below: Fixed Route: (2.7 %) Smart Way. (12.9 %) Smart Way Connector: (2.5 %) Star Line Trolley: (8.2 %) STAR: + 4% Res Ome d, Carl L. General Manager Copy: Vice President of Operations Assistant Vice President of Operations Treasurer Secretary GRTC General Counsel Municipal Auditor GRTC /VALLEY METRO FIXED ROUTE ADULT FARE REVIEW & DISCUSSION March 20, 2017 GRTC /VALLEY METRO FIXED ROUTE ADULT FARE REVIEW AND DISCUSSION Last fare increase 2007: $1.25 to $1.50 Over Last 10 Years: Operating Expense Increased 24% Operating Revenue Offset Decreased 2.4% Federal & State Percentage Of Match Contribution Decreased 4% Local Subsidy Burden Increased From 22% to 25% $.25 cents Base Fare Increase from $1.50 to $1.75: Increases Annual Fare Box Revenue Approximately 19% Reduces Subsidy Burden by 15% or $323,600 for Fiscal 2018 STAR Monthly Fare Pass Program Analysis Proposed Limit on Use March 20, 2017 60.000 50,000 40,000 30.000 20,000 10p00 Trips Over 11 Months: 76,279 Pan, Homers Non Fa:: HWM Pass Holders 22,931 30% Non Pass Holders 53,348 70% 1200 1000 e00 s00 400 zoo Pa i Hdders Pass Holders Eligible Riders: 1,198 Hon P Holders 58 5% Non Pass Holders 1140 95% Average Trips Per Month 40 35 P. HdONS NM Pus MW r, Pass Holders 40 +83% Non Pass Holders Trips Per Month Threshold 112 Eligible Pass Holders (7) 12% above proposed limit 58 46 Eligible Pass Holders (51) 88% at or below proposed limit *Current Pass Priced At $96.00 Based On Average Of 32 Trips; 52 Trip Limit Allows For 20 More Trips At No Cost = 38% Discount GREATER ROANOKE TRANSIT COMPANY BOARD OF DIRECTORS March 20, 2017 William D. Bestpitch, President Anita J. Price, Vice - President Mark Jamison Karen Michalski - Karney Curtis Mills Melinda Payne Michael Shockley Dear President Bestpitch 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 19, 2017, at 1:30 p.m., in the City Council Chamber. Sincerely, A4a�� rn� Stephanie M. Moon Reynolds 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 Laura M Carlini, Assistant General Counsel, GRTC Barbara A. Dameron, Treasurer, GRTC Drew Harmon, Municipal Auditor Carl L. Palmer, General Manager, Valley Metro, P. O. Box 13247, Roanoke, Virginia 24032 Kevin Price, Assistant General Manager, Valley Metro, P. O. Box 13247, Roanoke, Virginia 24032 L.CLEMWATA�jnmoon� R FC.16lvhl ulmg StxUolde Metmg.doc W= 40Y % M Greater Roanoke Transit Company Roanoke, Virginia April 27, 2017 William D. Bestpitch, President and Members of the Board of Directors Dear President Bestpitch and Members of the Board: Subject: Greater Roanoke Transit Company March 2017 Financial Report The attached report provides financial performance information for March of Fiscal Year (FY) 2017. On a year -to -date basis, Greater Roanoke Transit Company (GRTC) experienced net income of $907,344 an increase of $515,689 compared to the same period in FY 2016. The significant factors affecting financial performance are outlined below. Revenue Total revenue increased 8.2% over the same period last year and is 8.2% above the established budget. Significant factors impacting revenue include: • Fare Revenues decreased approximately 4.7% compared to FY 2016 and are approximately 5.8 °% below the established budget. • Other Revenues (advertising, building rental, parking, miscellaneous) increased 12.3% compared to the prior year and are 20.2% above the established budget. • Federal and State Revenue increased 14.4% and is performing at a level that exceeds budget expectations. Expenses Total expenses increased 1.1% compared to FY 2016 and are performing 1.5% below the established budget. Significant factors impacting expenses include: • Labor and Fringe Benefits increased approximately 5.7% but are performing within 1% of the established budget. • Services increased approximately 7.3% but are 3.3% below the established budget. Greater Roanoke Transit Company William D. Bestpitch, President and Members of the Board of Directors GRTC Financials April 27, 2017 Page 2 • Materials and Supplies decreased 11.7% and are 2.9% below the established budget. • Utilities decreased approximately 4.9% and are 7.3% below the established budget. • Property insurance decreased 30.3 °% and is 24.9% below the established budget. • Miscellaneous Expense increased approximately 3.5 °% but is 1.6 °% below the established budget. Respectfully Submitted, Carl er 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 Nine Months Ending March 31, 2017 FY FY FY 17 2017 2016 BUDGET % FY 17 March March TOTAL BUDGET OPERATING INCOME Operating Revenue $1,470,021.36 $1,541,908.08 $2,122,720.00 69.25% Nan - Transportation Revenues 212283.33 189,006.08 223,084.00 95.16% Total Income $1,682,304.69 $1,730,91416 $2,345,804.00 71.72% OPERATING EXPENSES Labor - Hourly & Salary $2,899,651.91 $2,784,016.38 $3,756,673.00 77.19% Fringe Benefits 1,317,356.32 1,207,63923 1,804,992.00 72.98% Services 422,956.03 394,073.71 589,465.00 71.75% Materials & Supplies 909,774.81 1,030,124.48 1,261,734.00 72.11% Utilities 177,479.89 186,551.93 262,212.00 67.69% Insurance Costs 190,065.95 272,702.17 379,475.00 50.09% Miscellaneous Expenses 964,131.86 931,159.39 1,313,092.00 73.42% Total Expenses $6,881,416.77 $6,806,267.29 $9,367,643.00 73.46% Net LOSS ($5,199,112.08) ($5,075,353.13) ($7,021,839.00) 74.04% Local Grants $1,734,234.56 $1,646,070.56 $2,312,924.00 74.98% State Grants 1,625,237.00 1,274,172.00 1,709,287.00 95.08% Federal Grants 2746,984.59 2546,766.00 2999628.00 91.58% Total Subsidies $6,106,456.15 $5,467,008.56 $7,021,839.00 86.96% Net Income (loss) . $907,344.07 $391,655.43 GREATER ROANOKE TRANSIT COMPANY SUMMARY OF STATEMENT OF NET POSITION 3/31/2016 3/31/2015 Year- to-Date Year -to -Date %of Change ASSETS CASH $ 940,581.59 $ 405,576.96 132% ACCOUNTS RECEIVABLE $ 805,354.81 $ 1,941,383.59 -59% INVENTORY $ 530,506.49 $ 515,160.57 3% FIXED ASSETS FIXED ASSETS $ 32,199,271.71 $ 31,501,019.99 2% ACCUMULATED DEPRECIATION $ (21,237,288.90) $ (19,298,422.29) 10% NET FIXED ASSETS $ 10,961,982.81 $ 12,202,597.70 -10% PREPAYMENTS $ 54,855.37 $ 152,009.83 -64% TOTAL ASSETS $ 13,293,281.07 $ 15,216,728.65 -13% CURRENT LIABILITIES ACCOUNTS PAYABLE $ 373,085.17 $ 512,550.05 -27% PAYROLL LIABILITIES $ 369,039.36 $ 283,954.35 30% OTHER LIABILITIES $ 557,559.71 $ 976,647.90 -43% CAPITAL CAPITAL STOCK $ 5.00 $ 5.00 0% GRANTS $ 4,271,876.60 $ 4,488,531.10 -5% DEPRECIATION EXPENSE $ (1,433,059.47) $ (1,485,158.56) -4% RETAINED EARNINGS $ 8,399,814.27 $ 9,037,478.12 -7% CAPITAL CONTRIBUTIONS $ 363,305.00 $ 901,664.00 -60% NET INCOME (LOSS) $ 391,655.43 $ 501,056.69 -22% TOTAL CAPITAL $ 11,993,596.83 $ 13,443,576.35 -11% TOTAL LIABILITIES & CAPITAL $ 13,293,281.07 $ 15,216,728.65 -13% Va11ey M Greater Roanoke Transit Company Roanoke, Virginia June 1, 2017 William D. Bestpitch, President and Members of the Board of Directors Dear President Bestpitch and Members of the Board: Subject: Greater Roanoke Transit Company April 2017 Financial Report The attached report provides financial performance information for April of Fiscal Year (FY) 2017. On a year -to -date basis, Greater Roanoke Transit Company (GRTC) experienced net income of $867,265 an increase of $613,743 compared to the same period in FY 2016. The significant factors affecting financial performance are outlined below. Revenue Total revenue increased 9.2% over the same period last year and is 7.2% above the established budget. Significant factors impacting revenue include: • Fare Revenues decreased approximately 5.2% compared to FY 2016 and are approximately 6.9% below the established budget. • Other Revenues (advertising, building rental, parking, miscellaneous) increased 16.7% compared to the prior year and are 23.6% above the established budget. • Federal and State Revenue increased 16.2% and is performing at a level that exceeds budget expectations. Expenses Total expenses increased 1.4 °% compared to FY 2016 and are performing approximately 2.1% below the established budget. Significant factors impacting expenses include: • Labor and Fringe Benefits increased approximately 5.4% but are performing within 1% of the established budget. • Services increased approximately 6% but are 4% below the established budget. Greater Roanoke Transit Company William D. Bestpitch, President and Members of the Board of Directors GRTC Financials June 1, 2017 Page 2 • Materials and Supplies decreased 10.2% and are 2.4% below the established budget. • Utilities decreased .7% and are 8.1% below the established budget. • Property insurance decreased 30.6% and is 27.9% below the established budget. • Miscellaneous Expense increased approximately 4.9% but is within 1 °%of the established budget. Respectfully Submitted, Carl L. Palmer General Manager Cc: Vice President of Operations Assistant Vice President of Operations Treasurer Secretary GRTC General Counsel Municipal Auditor OPERATING EXPENSES Labor - Hourly &Salary GREATER ROANOKE TRANSIT COMPANY SOUTHWESTERN VIRGINIA TRANSIT MANAGEMENT COMPANY $3,756,673.00 Operating Revenue and Expense Statement Fringe Benefits 1,447,713.20 For the Ten Months Ending April 30, 2017 1,329,216.03 FY FY FY 17 80.21% 2017 2016 BUDGET % OF FY 17 April April TOTAL BUDGET OPERATING INCOME 79.33% Materials & Supplies Operating Revenue $1,622,688.14 $1,711,709.36 $2,122,720.00 76.44% Non - Transportation Revenues 238,438.50 204,311.93 223,084.00 106.88% Total Income $1,861,126.64 $1,916,021.29 $2,345,804.00 79.34% OPERATING EXPENSES Labor - Hourly &Salary $3,185,507.57 $3,067,718.05 $3,756,673.00 84.80% Fringe Benefits 1,447,713.20 1,329,216.03 1,804,992.00 80.21% Services 467,620.54 441,015.78 589,465.00 79.33% Materials & Supplies 1,020,977.47 1,137,243.57 1,261,734.00 80.92% Utilities 197,287.04 198,706.96 262,212.00 75.24% Insurance Costs 210,480.70 303,337.22 379,475.00 55.47% Miscellaneous Expenses 1,084,157,52 1,033,713.30 1,313,092.00 82.57% Total Expenses $7,613,744.04 $7,510,950.91 $9,367,643.00 81.28% Net Loss ($5,752,617.40) ($5,594,929.62) ($7,021,839.00) 81.92% Local Grants $1,942,791.70 $1,824,636.48 $2,312,924.00 84.00% State Grants 1,825,644.13 1,412,453.00 1,709,287.00 106.81% Federal Grants 2851447.00 2,611,363.00 2,999,628.00 95.06% Total Subsidies $6,619,882.83 $5,848,452.48 $7,021,839.00 94.28% Net Income (loss) $867,265.43 $253,522.86 GREATER ROANOKE TRANSIT COMPANY SUMMARY OF STATEMENT OF NET POSITION 4/30/2017 4/30/2016 Year -to -Date Year -to -Date % of Change ASSETS CASH $ 1,131,082.11 $ 1,046,929.62 8% ACCOUNTS RECEIVABLE $ 961,982.69 $ 692,699.24 39% INVENTORY $ 457,774.53 $ 545,257.78 -16% FIXED ASSETS FIXED ASSETS $ 32,453,517.28 $ 32,199,271.71 1% ACCUMULATED DEPRECIATION $ (22,316,531.89) $ (21,396,517.73) 4% NET FIXED ASSETS $ 10,136,985.39 $ 10,802,753.98 -6% PREPAYMENTS $ 74,896.13 $ 92,137.32 -19% TOTAL ASSETS $ 12,762,720.85 $ 13,179,777.94 -3% CURRENT LIABILITIES ACCOUNTS PAYABLE $ 295,822.08 $ 425,165.34 -30% PAYROLL LIABILITIES $ 357,876.43 $ 359,139.87 0% OTHER LIABILITIES $ 675,514.32 $ 699,183.30 -3% CAPITAL CAPITAL STOCK $ 5.00 $ 5.00 0% GRANTS $ 4,055,222.10 $ 4,271,876.60 -5% DEPRECIATION EXPENSE $ (1,427,488.10) $ (1,592,288.30) -10% RETAINED EARNINGS $ 6,998,686.59 $ 8,399,814.27 -17% CAPITAL CONTRIBUTIONS $ 939,817.00 $ 363,359.00 159% NET INCOME (LOSS) $ 867,265.43 $ 253,522.86 242% TOTAL CAPITAL $ 11,433,508.02 $ 11,696,289.43 -2% TOTAL LIABILITIES & CAPITAL $ 12,762,720.85 $ 13,179,777.94 -3% GREATER ROANOKE TRANSIT COMPANY BOARD OF DIRECTORS May 11, 2017 William D. Bestpitch, President, and Members of the Greater Roanoke Transit Company Board of Directors Dear President Bestpitch and Members of the Board: The regular meeting of the Greater Roanoke Transit Company Board of Directors will be held on Monday, May 15, 2017, 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, Stephanie M. Moon Reynolds Secretary PC: Christopher P. Morrill, Vice President of Operations, GRTC Daniel J. Callaghan, General Counsel, GRTC Barbara A. Dameron, Treasurer, GRTC Troy A. Harmon, Municipal Auditor Sherman M. Stovall, Assistant Vice President of Operations, GRTC Laura M. Carini, Assistant General Counsel, GRTC Carl L. Palmer, General Manager, Valley Metro, P. O. Box 13247, Roanoke, Virginia 24032 Kevin Price, Assistant General Manager, Valley Metro, P. O. Box 13247, Roanoke, Virginia 24032 Stephanie Giles, Director of Finance, Valley Metro, P. O. Box 13247, Roanoke, Virginia 24032 L \CLERKTATA \sm,.. \GRMWWay 15.2017 Meeting NoticeA.o GREATER ROANOKE TRANSIT COMPANY BOARD OF DIRECTORS MAY 15, 2017 1:00 P.M. EOC CONFERENCE ROOM ROOM 159 AGENDA 1. Call to Order 2. Roll Call — All Present. 3. Approval of Minutes: Regular meeting held on Monday, March 20, 2017. Without objection, the reading of the minutes were dispensed with and approved as recorded. 4. Reports of Officers: a. General Manager: 1. Management Update: Planning and Special Projects o Comprehensive Operational Analysis (COA) o Regional Surface Transportation Program (RSTP) o Fuel Management Audit Collective Bargaining Agreement Fiscal 2017 Ridership Without objection, the Management Update was received and filed. 2. Approval of GRTC Fiscal 2017 -2018 Operating Budget. Adopted Resolution (7 -0) 3. Grant Projects Update. Without objection, the Update was received and filed. 4. Proposed Fare Change and Pending Public Hearing. Concurred in recommendation. 5. Proposed Limit for STAR Monthly Fare Pass. Continued until the next meeting scheduled to be held on Monday, June 19 at 1:45 p.m., in the Council's Conference Room. 6. Financial Presentation by Adam Salvia and Donald Deeds with Cherry Bekeart. Without objection, the Financial Report was received and filed. 5. Next Meeting Date: Monday, June 19, 2017 at 1:45 p.m. in the Council's Conference Room. 6. Adjournment — 1:42 P.M. Va��ey M Greater Roanoke Transit Company Board of Directors Meeting Management Update May 15, 2017 Planning and Special Projects Comorehensive Operational Analysis (COA K. el. il, The Virginia Department of Rail and Public Transportation (DRPT) has agreed to add GRTC's COA project to its current task order contract for transit development and analysis projects The original scope of GRTC's COA described in the March 20, 2017 Management Update will remain intact. Incorporating the COA project into DRPT's existing task order contract will reduce GRTC's original local cost burden from $150,000 to $100,000. Regional Surface Transportation Program (RSTP) At its meeting do April 27, 2017, Roanoke Valley - Alleghany Regional Commission's Transportation Planning Organization (TPO) Policy Board approved an additional $2,049,274 in RSTP funds to support GRTC's bus replacement program. This brings the total RSTP funding commitment to $13,622,784. This will enable GRTC to replace up to 36 buses, coaches, and trolleys in GRTC's 47 revenue vehicle fleet between fiscal year 2018 and 2023. As reported in the March 20, 2017 Update, ten (10) buses and two (2) trolleys will require a 4% local match ($206,800), six percentage points below the norm; the remaining buses and trolleys will be funded 100% through the TPO's RSTP with federal and state grants, requiring no local match. Fuel Management Audit GRTC is currently undergoing an audit of its fuel management procedures conducted by the City Roanoke's Municipal Auditor's office. One of the elements of the audit includes a review of GRTC fuel purchasing procedures and resulting contracts. During the course of this review, the auditor discovered in a prior contract (September 2015 to August 2016) a discrepancy between the fuel vendor's bid quote for differential costs (the carrying charges and related fees for deliveries) and how it was accounted for in the vendor's contract with GRTC. This discrepancy resulted in GRTC making an overpayment in the amount of $24,795 for that contract period. The vendor has been advised of the discrepancy and steps are being taken to recover the overpayment. Collective Bargaining Agreement The Collective Bargaining Agreement (CBA) between the Amalgamated Transit Union (ATU), Local 1493, and the Southwestern Virginia Transit Management Company, expires June 30, 2017. On March 22, 2017, management received a formal notice, dated March 19, 2017, from the ATU citing its intent "to modify or change" the CBA. Management, in consultation with First Transit's labor counsel and the ATU's International Representative, is in the process of selecting a date on which to commence negotiations. Greater Roanoke Transit Company PO Box 13247 • Roanoke, Virginia 24032 • Phone: 540.982.0305 • Fax:540.982.2703 • www.valleymetro.com Fiscal 2017 Ridership Overall, ridership for FY 2017 year to date as of March, 2017 is 3.9% below FY 2016. GRTC's ridership percentage change for March year to date for FY17 compared to March year to date for FY16 for each GRTC service type is detailed below: Fixed Route: (3.9 %) Smart Way: (12.8°/x) Smart Way Connector: (3.9 %) Star Line Trolley: (5.9 %) STAR: + 3.9% ReNa y fitted, amer General Manager Copy: Vice President of Operations Assistant Vice President of Operations Treasurer Secretary GRTC General Counsel Municipal Auditor V, 4'.1' ram M Greater Roanoke Transit Company Board of Directors Meeting Action Item May 15, 2017 The Honorable William D. Bestpitch, President, and Members and Officers of the Board of Directors Greater Roanoke Transit Company Roanoke, Virginia Subject: GRTC Fiscal Year 2017 —2018 Operating Budget Background The Board of Directors annually appoints a Budget Committee to review the proposed operating budget for the Greater Roanoke Transit Company (GRTC) and provide a recommendation to the full Board of Directors. The Board President, William D. Bestpitch, appointed Board Members, Michael Shockley, and Curtis Mills, Treasurer, Barbara Dameron, and GRTC's Assistant Vice - President of Operations, Sherman Stovall, to the fiscal 2018 Budget Committee. The Budget Committee met on April 20, 2017 to review and discuss GRTC's proposed fiscal 2018 operating budget. The Budget Committee endorsed the proposed budget in its current form and agreed to recommend it to the full Board of Directors. The recommended budget is attached; it totals approximately $10 million, an increase of 7% above fiscal year 2017. Recommendation The Budget Committee recommends that the Board of Directors approve GRTC's fiscal year 2017 —2018 operating budget. /Respe ull ed, er GRTC General Manager Cc: 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 GREATER ROANOKE TRANSIT COMPANY COMBINED BUDGET (Valley Metro, Smartway, Trolley, Smartway Connector) FY 18 NET INCOME (LOSS) I $ (129,401) $ $ D2 REVENUES FY 16 ACTUAL FY 17 BUDGET FY 18 BUDGET %INCR /DECK PASSENGER REVENUES $ 2,032,634 $ 2,122,720 $ 1,922,571 -9% ADVERTISING $ 111,036 $ 105,935 $ 111,036 5% INTEREST $ 1,13D $ 1,923 $ 1,130 -41% OTHER REVENUES $ 120,501 $ 115,226 $ 148,426 29% TOTALREVENUES $ 2,265,300 $ 2,345,804 $ 2,183,163 -7% EXPENSES LABOR $ 3,615,698 $ 3,756,673 $ 3,977,886 6% FRINGE BENEFITS $ 1,613,314 $ 1,804,992 $ 1,901,463 5% SERVICES $ 547,744 $ 589,465 $ 710,080 20% MATERIALS & SUPPLIES $ 1,374,656 $ 1,261,734 $ 1,342,324 6% UTILITIES $ 238,778 $ 262,212 $ 260,181 -1% INSURANCE $ 363,515 $ 379,475 $ 269,306 -29% MISCELLANEOUS $ 1,268,821 $ 1,313,092 $ 1,562,041 19% TOTAL EXPENSES $ 9,022,527 $ 9,367,643 $ 10,023,281 7% DEFICIT $ (6.757.227)1 (7,021,839) $ (7,840,118) 12% SUBSIDIES FEDERAL $ 2,718,825 $ 2,999,628 $ 2,967,855 -1% STATE $ 1,705,248 $ 1,709,287 $ 2,021,469 18% OTHERLOCAL $ 334,060 $ 349,593 $ 397,373 14% NEW RIVER VALLEY $ 46,478 $ 51,748 $ 52,310 1% VA TECH $ 11,108 $ 11,978 $ 409,950 3323% CITY OF ROANOKE $ 1,812,107 $ 1,899,605 $ 1,991,161 5% TOTALSUBSIDIES $ 6,627,826 $ 7,021,839 $ 7,640,118 12% NET INCOME (LOSS) I $ (129,401) $ $ D2 '6-) BOARD OF DIRECTORS OF GREATER ROANOKE TRANSIT COMPANY A RESOLUTION APPROVING A FISCAL YEAR 2018 BUDGET FOR GREATER ROANOKE TRANSIT COMPANY. WHEREAS, the Greater Roanoke Transit Company (GRTC) Budget Review Committee has reviewed the General Manager's proposed operating budget for GRTC for fiscal year 2018 (July 1, 2017 to June 30, 2018); and WHEREAS, the Budget Review Committee has endorsed the recommended budget of $10,023,281. THEREFORE, BE IT RESOLVED by the Board of Directors of the Greater Roanoke Transit Company that the Board of Directors hereby adopts the fiscal year 2018 Budget in the aggregate amount of $10,023,281, all as set forth in an attachment to the Board Report dated May 15, 2017, from the GRTC General Manager. ATTTTEST:,7 �. Date Adopted: %A.y,. /b�� /% /� Iwo r7" — Stephanie M. Moon Reynold ary q.a.3, Wa1140 i1 M Greater Roanoke Transit Company Roanoke, Virginia May 15, 2017 William D. Bestpitch, President and Members of the Board of Directors Dear President Bestpitch and Members of the Board: Subject: Greater Roanoke Transit Company Grant Projects Update The attached report provides information on the status of grants received by the Greater Roanoke Transit Company's (GRTC). Providing this information complies with a recommendation from the external auditor to update the Board annually on the status of grant projects. The FTA requires GRTC to report milestone progress for each project and the funds expended in each grant in its electronic management system, TrAMS. The reports are filed by October 3011, January 30 °h, April 3011, and July 3011 of each federal year. GRTC must file a Disadvantaged Business Enterprise report by December V and June V of each federal year. To -date, all reports have been submitted in a timely manner. Respectfully Submitt d, i Carl L. Imer General Manager Cc: Vice President of Operations Assistant Vice President of Operations Treasurer Secretary GRTC General Counsel Municipal Auditor GREATER ROANOKE TRANSIT COMPANY GRANTS PROJECTS UPDATE May 15, 2017 - Estimated Total Eligible Expenditures Balance June Expenses Date Date of Award Federal Grant R State GmnW Capital Operating Expense Through BY 16 30,2016 BY 17 Balance IS Complete Description Complete 09/05/08 VA -95- X019 -00 N/A $ 515,000 $ - $ 515,000 $ 352,143 $ 162,857 $ - $ 162,857 68.4% Bus Vacuum 12/30/17 06/05/09 VA -04- 0027 -00 $ 1,820,000 $ - $ 1,820,000 $ 1,290,607 $ 529,393 $ 89,530 $ 439,863 75.8% Expansion Building 04 /30/18 )3114 -35 09/14/10 VA -04- 0046 -1X1 N/A $ 1,160,020 $ - $ 1,160,020 $ 923,058 $ 236,962 $ 8,793 $ 228,169 8013% Wal -Mart Shelter 03/31/18 VA -04 -0041 -02, 08/05/11 Passthrough to $ 402,325 $ $ 402,325 $ 110,155 $ 292,170 $ 140,062 $ 152,108 62.2% OWL Rehab 05/31/17 OWL N/A 09/13/12 VA -95- X123 -00 $ 187,000 $ $ 187,000 $ 56,042 $ 130,958 $ 7,558 $ 123,400 34.0% Rehab 1108 & CC 07/28/17 N/A 08/30/13 VA -95- X132 -00 N/A $ 4,243,251 $ - $ 4,243,251 $ 5,364 $ 2,007 $ 3,357 99.9% Miss Equipment 06/30/573114 34, 02/11/15 VA -34- 0006 -00 7311437 $ 260,822 $ - $ 260,822 $ 153,099 $ 4,211 $ 148,888 42.9% Radios,ft.are re & 12/31/18 A 1143) & okware 7311547 02/11/15 VA -90- X416 -00 $ 30,561 $ fi,923,842 $ 6,954,403 F4,237,887 $ - $ - $ - 100.0% A &E WaI -Mart Shelter 03/31/18 73114 38 08/20/15 VA- 95- X133 -00 $ 560,000 $ - $ 560,000 $ 560,000 $ 556,558 $ 3,442 99.4% Bus 05/15/17 72514 06 VA18-X038 00, MCI Bus Rebuild & 09/25/15 State $ 450,000 $ - $ 450,000 $ 390,018 $ 46,734 $ 343,284 233% 06/30/18 Rehab Passmough 42016 61 7/1/2016 N/A 71317 -07 $ - $ 64,560 $ 64,560 $ - $ 64,560 $ 19,762 $ 44,798 30.6% 2017 State Roadeo 06/30/18 7/1/2016 N/A )201) -31 $ - $ 2,045,166 $ 2,045,166 $ - $ 2,045,166 $ 1,533,875 $ 511,291 75.01 State Operating 06/30/17 Assistance 73116 -40 AVL/GPS (Phase 1), Shop 08/15/16 VA- 2016 -009 -1X1 THRU 73116- $ 465,896 $ - $ 465,896 $ - $ 465,896 $ - $ 465,896 0 0% Equipment, Windows, O6/30/18 43,)3116 -46, Kiosk, Cash Registers & )3116 48 7311548, Operating 09/02/16 VA- 2016 - 012-00 73116 -45,& $ 61,858 $ 7,185,894 $ 7,247,752 $ 736,945 $ 6,510,807 5 4,667,865 $ 1,842,942 74.6% Assistance,Wal -Mart 05/31/18 7201731 Shelter 5311 Operating 10/1/2016 N/A $ - $ 124,082 $ 124,082 $ - $ 124,082 $ 57,219 $ 66,863 46.1% 12/31/17 72017 -32 Assistance (State) VA- 2016 - 028 -W, 5311 Operating 10/5/2016 State $ - $ 707,072 $ 707,072 $ - $ 707,072 $ 268,442 $ 438,630 38.0% 12/31/17 Assistance (Federal) Passthmugh 42517 -14 12/12/16 VA- 2017 - 00200 $ 221,024 $ - $ 221,024 $ - $ 221,024 $ 218,353 $ 2,671 98.8% Para - Transit Vehicles, 12/31/17 N/A Support VeM1idas $ 10,377,757 $ 17,050,616 $ 27,428,373 $ 14,828,945 $ 12,599,428 $ 7,620,969 $ 4,978,459 81.8% Presentation to Management of the Greater Roanoke Transit Company May 15, 2017 `� Cherry Bekaert "' CPAs 6 Advisors Aft Engagement Services Service Deliverables Audit Methodology Significant Audit Areas Engagement Services ► You have engaged us to provide the following: • An audit of GRTC's FY 2017 financial statements ■ Audit of GRTC's major federal programs required by the Uniform Grant Guidance EJ 1.u... LA Service Deliverables • Report on the financial statements of GRTC as of and for the year ending June 30, 2017 • Report on internal control over financial reporting and on compliance and other matters required by Government Auditing Standards • Report on compliance for each major federal program and internal control over compliance in accordance with the Uniform Grant Guidance *Audit plan and strategy • Results of the audit �= Cherry Bekaert" :FA.6 Aeaso,. 1{ � ak ,, •l it 9!f • tl Audit Methodology � r. e Audit Methodology Cherry Bekaert utilizes a top -down risk -based integrated audit approach which is broken into three phases: • Perform risk assessment procedures to determine the significant audit areas and reporting and compliance requirements • Update our GRTC specific Provided By Client list • Update audit testing programs based on identified audit and financial reporting risks • Perform appropriate substantive and analytical procedures, including tests of internal controls, where appropriate. • Manager and Partner oversight throughout the process • Communicate testing results and other matters through status updates • Evaluate the results, communicate with management and the Board and issue the required reports ft� Cherry Bekaert CPAs 6 Ad. Audit Methodology — Single Audit Cherry Bekaert employs an efficient, effective, compliant, and time- tested Single Audit process based on three phases: • Identify major federal grant programs and their respective compliance requirements based upon a risk -based analysis • Test the administrative control systems to verify compliance with general and specific grant requirements • Test for conformance with compliance requirements (e.g., allowable costs, reporting) • Summarize audit results, report any compliance and /or internal control finding(s) to management, and assist in preparation of corrective action plan(s) • Prepare required reports along with a Schedule of Findings and Questioned Costs �� Cherry Bekaert "" CM 6 4e.uoo Significant Audit Areas Significant Audit Areas Based on our preliminary risk assessment of GRTC, we have identified the following financial statement captions as significant audit areas and our audit test work will include the following procedures: • Update our understanding of controls in place over operating revenues • Perform predictive analytical procedures over service revenues • Confirm Due From Other Governments balances and analytically test revenues (e.g., year vs. year) • Test the collectability of receivables • Update our understanding of controls in place over expenses and payables and test accordingly • Perform a search for unrecorded liabilities • Perform analytical and other procedures over related balances �� Cherry Bekaert 12 can.&M.— Significant Audit Areas • Update our understanding of controls in place over capital assets and test accordingly • Roll forward capital assets, testing additions, and deletions • Analytically test depreciation expense •Test internal controls over major program administration •Test compliance with applicable compliance requirements (e.g., allowable costs, cash management, reporting) • Review journal entries to ensure net position is properly classified and disclosed • Review account groupings for financial statements • Review implementation of new GASB requirement for fair presentation 13 *0� Cherry Bekaert °` CPA, I • Adam Salvia Partner 540.342.6911 asalvia @cbh.com Rob Churchman if* Partner 804.673.5733 churchman @cbh.com Donald Deeds Manager 540.342.6911 x3008 ddeeds @cbh.com 7M *1 42 • Yi GREATER ROANOKE TRANSIT COMPANY BOARD OF DIRECTORS May 31, 2017 Carl L. Palmer General Manager Valley Metro P. O. Box 13247 Roanoke, Virginia 24032 Dear Mr. Palmer: Your report with regard to the proposed limit for STAR Monthly Fare Pass was before the Greater Roanoke Transit Company Board of Directors on Monday, May 15, 2017. Discussion regarding the matter was continued until the next regular meeting scheduled to be held on Monday, June 19 at 1:45 p.m., in the Council's Conference Room.. Sincerely, czt,tu "o�& Cecelia F. McCoy Assistant Secretary PC: Sherman M. Stovall, Assistant Vice - President of Operations Barbara A. Dameron, Treasurer Daniel J. Callaghan, General Counsel Laura Canni, Assistant General Counsel Troy A. Harmon, Municipal Auditor Kevin Price, Assistant General Manager, Valley Metro GREATER ROANOKE TRANSIT COMPANY BOARD OF DIRECTORS May 31, 2017 The Honorable Sherman P. Lea, Sr., and Members of the Roanoke City Council Roanoke, Virginia Dear Mayor Lea and Members of City Council: Pursuant to Paragraph 3, Article II, By -Laws of the Greater Roanoke Transit Company, this is to remind you that the Annual Meeting of the Stockholders will be held on Monday, June 19, 2017, at 1:30 p.m., in the City Council Chamber, Noel C. Taylor Municipal Building, 215 Church Avenue, S. W., Roanoke, Virginia. Sincerely, c fe Cecelia F. McCoy Assistant Secretary pc: Sherman M. Stovall, Assistant Vice President of Operations, GRTC Daniel J. Callaghan, General Counsel, GRTC Barbara A. Dameron, Treasurer, GRTC Laura Carini, Assistant General Counsel, GRTC Carl Palmer, General Manager, Valley Metro, P. O. Box 13247, Roanoke, Virginia 24032 Kevin Price, Assistant General Manager, Valley Metro, P. O. Box 13247, Roanoke, Virginia 24032 K - \GRTC - Correspondences \2017 \6- 19- 17\Call Letter for Stockholders Megng.doc GREATER ROANOKE TRANSIT COMPANY BOARD OF DIRECTORS May 31, 2017 Carl L. Palmer, General Manager Valley Metro P. O. Box 13247 Roanoke, Virginia 24032 Dear Mr. Palmer: I am enclosing copy of a resolution approving a Fiscal Year 2018 Budget for Greater Roanoke Transit Company. The abovementioned resolution was adopted by the Board of Directors at its regular meeting held on Monday, May 15, 2017. Sincerely, Q Cecelia F. McCoy Assistant Secretary PC: Sherman M. Stovall, Assistant Vice - President of Operations Barbara A. Dameron, Treasurer Daniel J. Callaghan, General Counsel Laura Carini, Assistant General Counsel Troy A. Harmon, Municipal Auditor Kevin Price, Assistant General Manager, Valley Metro v0, BOARD OF DIREC IONS OF GRFATI R ROANOKE IRANSI "I COMPANY A RESOLUPON APPROVING A FISCAL YLAR 2018 BUDOI—I FOR GREATER ROANOKE TRANSIT COMPANY. WI IFREAS, the Greater Roanoke Transit Compan} (GRIC) Budget ReNic�c Committee has rexie�ccd the General Managers proposed operating budget for GRIC for fiscal Ncar 2018 (Jtd� I. 2017 to Junc 30. 2018): and l4HERLAS, the Budget Recie%N Committee has endorsed the recommended budget of b 1 0,023.281. IIIERFPORIi. 131, If RESOLVED by the Board of Directors ofthe Greater Roanoke Transit Compam that the Board of Directors hereh} adopts the fiscal Near 2018 Budget in the agereeate amount of 510.023281. all as set forth in an attachment to the Board Report dated Mac Li. 2017_ from the GRIC General Manager. ATIEiS I : Date Adopted: 'Mcp /5, a017 e4te a, Stephanie M. PPdoon Rc) nold�ctan GREATER ROANOKE TRANSIT COMPANY BOARD OF DIRECTORS June 15, 2017 William D. Bestpitch, President, and Members of the Greater Roanoke Transit Company Board of Directors Dear President Bestpitch and Members of the Board: The regular meeting of the Greater Roanoke Transit Company Board of Directors will be held on Monday, June 19, 2017, 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, Cecelia F. McCoy Assistant Secretary PC: Sherman M. Stovall, Assistant Vice President of Operations, GRTC Daniel J. Callaghan, General Counsel, GRTC Barbara A. Dameron, Treasurer, GRTC Troy A. Harmon, Municipal Auditor Laura M. Carini, Assistant General Counsel, GRTC Carl L. Palmer, General Manager, Valley Metro, P. O. Box 13247, Roanoke, Virginia 24032 Kevin Price, Assistant General Manager, Valley Metro, P. O. Box 13247, Roanoke, Virginia 24032 Stephanie Giles, Director of Finance, Valley Metro, P. O. Box 13247, Roanoke, Virginia 24032 L: \CLERK\DATA\smmoon \GRTC.17\June 19, 2017 Meetlng Nodce.doc GREATER ROANOKE TRANSIT COMPANY BOARD OF DIRECTORS June 19, 2017 1:45 P.M. COUNCIL'S CONFERENCE ROOM ROOM 450 AGENDA Call to Order -- Roll Call. Directors Karen Michalski - Karney, Curtis E. Mills, and Vice - President Anita J. Price was absent. 2. Approval of Minutes: Regular meeting of GRTC held on Monday, May 15, 2017. Without objection, the reading of the minutes were dispensed and approved as recorded. 3. Reports of Officers: a. General Manager: Adoption of the Board of Directors' Meeting Schedule for the 2018 Fiscal Year. Adopted Resolution (4 -0) 4. Other Business. None. 5. Next Meeting: July 17, 2017 at 1:00 p.m., EOC Conference Room, Room 159. 6. Adjourn. 1:54 p.m. K: \GRTC- Action Agenda\2017Uuoe 19, 2017 Action Agenda.doc GREATER ROANOKE TRANSIT COMPANY BOARD OF DIRECTORS June 26, 2017 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 19, 2017. Sincerely, Y Cecelia F. McCoy Assistant Secretary PC: Sherman M. Stovall, Assistant Vice - President of Operations Barbara A. Dameron, Treasurer Daniel J. Callaghan, General Counsel Laura Carini, Assistant General Counsel Troy A. Harmon, Municipal Auditor The Honorable William D. Bestpitch, President The Honorable Anita J. Price, Vice - President Kevin Price, Assistant General Manager, Valley Metro Stephanie Giles, Director of Finance, Valley Metro Mark Jamison, Board Member Michael Shockley, Board Member Karen Michalski - Karney, Board Member Curtis E. Mills, Board Member Melinda J. Payne, Board Member 4; J 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 19, 2017, meeting, the GRTC General Manager recommended that the Board adopt a specific meeting schedule for the 2018 Fiscal Year, which ends on June 30, 2018, as more fully set forth in the General Manager's report dated June 19, 2017, to this Board. THEREFORE, BE IT RESOLVED by the Board of Directors of GRTC as follows: That the Board of Directors hereby approves and adopts the specific meeting schedule that is set forth below. Except for the meeting on June 18, 2018, 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 18, 2018, 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 111. Section 4 of the GRTC By -Laws, the following meeting dates for the GRTC Board are approved for the 2018 Fiscal Year: July 17, 2017 (Monday, 1:00 p.m. —EOC) September 18, 2017 (Monday, 1:00 p.m. — EOC) November 20, 2017 (Monday, 1:00 p.m. — EOC) January 16, 2018 (Tuesday, 1:00 p.m. — EOC) March 19, 2018 (Monday, 1:00 p.m. — FOCI May 21, 2018 (Monday, 1:00 p.m. — EOC) June 18, 2018 (Monday, 1:45 p.m. — City Council Conference Room, Room 451). 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: 9 0 C4"JQ _ MeeAz 74 'BeeJvX�1 /at. Stephanie M. Moon Reynolds, Secretary ((// R GRTC e,whh,fin, ueeting s heOWe FY2018 (5- 19 -1]) 2 Va11er M Greater Roanoke Transit Company Board of Directors Meeting June 19, 2017 Honorable William D. Bestpitch, President, and Members and Officers of the Board of Directors Greater Roanoke Transit Company Roanoke, Virginia Subject: Board of Directors Meeting Schedule for Fiscal 2018 Background At its June 20, 2016 meeting, the GRTC Board of Directors approved by resolution its meeting schedule for the 2017 fiscal year. The Board needs to adopt a meeting schedule for the 2018 fiscal year. Recommendation The following GRTC Board of Directors meeting schedule is recommended for the 2018 fiscal year: 2017 2018 July 17th January 16th (Monday January 15th MILK Day) September 18th March 19th November 20th May 21 st June 18'^ The June 18, 2018 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. Resp *tf/d, Carl 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 June 15, 2017 Sherman P. Lea, Sr., Mayor Anita J. Price, Vice -Mayor William D. Bestpitch Michelle L. Dykstra Raphael E. Ferris John A. Garland David B. Trinkle Dear Mayor Lea and Members of the Council: The Annual Meeting of the Stockholders of the Greater Roanoke Transit Company will be held on Monday, June 19, 2017, at 1:30 p.m., in the City Council Chamber, fourth floor, Noel C. Taylor Municipal Building, 215 Church Avenue, S. W., Roanoke, Virginia. Sincerely, He C7 Cecelia F. McCoy Assistant Secretary PC: R. Brian Townsend, Acting City Manager Daniel J. Callaghan, City Attorney Barbara A. Dameron, Director of Finance Sherman M. Stovall, Assistant City Manager for Operations Drew Harmon, Municipal Auditor Laura M. Carini, Assistant Attorney Carl Palmer, General Manager, Valley Metro Kevin Price, Assistant General Manager, Valley Metro Stephanie Giles, Director of Finance, Valley Metro 1.: (I FRK DA TA ennnoon OR[( 17 Annual Stockholders' ('all 1 elRr and Agenda. doe STOCKHOLDER'S ANNUAL MEETING GREATER ROANOKE TRANSIT COMPANY MONDAY, JUNE 19, 2017 1:30 P.M. CITY COUNCIL CHAMBER AGENDA 1. Call to Order - Roll Call. Council Members Michelle Dykstra, John Garland and Vice -Mayor Anita Price were absent. 2. Approval of Minutes: Annual Stockholder's meeting held on Monday, June 20, 2016. Without objection by the Council, the reading of the minutes was dispensed with and approved as recorded. 3. Statement of Purpose. Mayor Sherman P. Lea, Sr. The purpose of the meeting was to entertain nominations for the election of Directors of the Greater Roanoke Transit Company for one -year terms, each, commencing July 1, 2017. Election of Seven Directors • Two Members of City Council: Council Member William D. Bestpitch and Vice -Mayor Anita J. Price • Two City Staff Members: Mark D. Jamison and Michael B. Shockley • One Physically Challenged Representative: Karen Michalski - Karney • One Regional Representative: Melinda J. Payne (This position rotates every two years — City of Salem representative for one -year term) • One Citizen -at -Large Representative: Curtis E. Mills 4. Adjourn: 1:37 p.m. K \GRTC- Special W lic,,6 -19 -1] Stockholders Agenda Annual Meeting - GRTC.doc GREATER ROANOKE TRANSIT COMPANY BOARD OF DIRECTORS June 26, 2017 Melinda J. Payne Director of Economic Development City of Salem P. O. Box 869 Salem, Virginia 24153 Dear Ms. Payne: At the Annual Stockholder's Meeting of the Greater Roanoke Transit Company held on Monday, June 19, 2017, you were reappointed as a member of the Greater Roanoke Transit Company Board of Directors for a one year term, commencing July 1, 2017 and ending June 30, 2018. This position rotates every two years between the City of Salem and Town of Vinton. Enclosed you will find a Certificate of your reappointment and two copies of an Oath or Affirmation of Office, which must be administered by the 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. After the Oath has been administered, please return one copy 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. For recordkeeping purposes, complete the online application at www.roanokeva.aov. 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, c 7W� Cecelia F. McCoy Assistant Secretary Enclosures Melinda J. Payne June 26, 2017 Page 2 PC: Carl L. Palmer, General Manager, Valley Metro Kevin Price, Assistant General Manager, Valley Metro Sherman M. Stovall, Assistant Vice - President of Operations Daniel J. Callaghan, General Counsel Laura Carini, Assistant General Counsel Barbara A. Dameron, Treasurer COMMONWEALTH OF VIRGINIA To -wit: CITY OF ROANOKE I, Cecelia F. McCoy, 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 Annual Stockholder's meeting of the Greater Roanoke Transit Company, which was held on the nineteenth day of June 2017, MELINDA J. PAYNE was reappointed as the regional representative of the Greater Roanoke Transit Company Board of Directors for term ending June 30, 2018. Given under my hand and the Seal of the Greater Roanoke Transit Company this twenty -sixth day of June 2017. CO. %A. A&e&-r Assistant Secretary Oath or Affirmation of Office Commonwealth of Virginia, City of Roanoke, to -wit: I, Melinda J. Payne, 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 the regional representative of the Greater Roanoke Transit Company Board of Directors for a term ending June 30, 2018, according to the best of my ability. (So help me God) i ELINDA . PAYNE The foregoing oath of office was taken, sworn to, and subscribed before me by Melinda J. Payne this / 9 day of — 2017. Brenda S. Hamilton, Clerk of the Circuit Court By S ( yr Clerk GREATER ROANOKE TRANSIT COMPANY BOARD OF DIRECTORS June 26, 2017 Mark Jamison Manager of Transportation Roanoke, Virginia Dear Mr. Jamison: At the Annual Stockholder's Meeting of the Greater Roanoke Transit Company held on Monday, June 19, 2017, you were reappointed as a member of the Greater Roanoke Transit Company Board of Directors for a one year term, commencing July 1, 2017 and ending June 30, 2018. After the Oath has been administered, please return one copy 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. For recordkeeping purposes, complete the online application at www.roanokeva.gov. 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, Cecelia F. McCoy Assistant Secretary Enclosures Mark Jamison June 26, 2017 Page 2 PC: Carl L. Palmer, General Manager, Valley Metro Kevin Price, Assistant General Manager, Valley Metro Sherman M. Stovall, Assistant Vice- President of Operations Daniel J. Callaghan, General Counsel Laura Carini, Assistant General Counsel Barbara A. Dameron, Treasurer COMMONWEALTH OF VIRGINIA ) To -wit: CITY OF ROANOKE ) I, Cecelia F. McCoy, 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 Annual Stockholder's meeting of the Greater Roanoke Transit Company, which was held on the nineteenth day of June 2017, MARK JAMISON was reappointed as a member of the Greater Roanoke Transit Company Board of Directors for a one - year term of office, commencing July 1, 2017 and ending June 30, 2018. Given under my hand and the Seal of the Greater Roanoke Transit Company this twenty -sixth day of June 2017. lke_� Assistant 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, commencing July 1, 2017 ending June 30, 2018, according to the best of my ability. (So help me God) MARK AMISON The foregoing oath of office was taken, sworn to, and subscribed before me by Mark Jamison this I0P_`day of 2017. Brenda S. Hamilton, Clerk of the Circuit Court Clerk i� A .�! GREATER ROANOKE TRANSIT COMPANY BOARD OF DIRECTORS June 26, 2017 Karen Michalski - Karney, Executive Director Blue Ridge Independent Living Center 1502 Williamson Road, N. E., Suite B Roanoke, Virginia 24012 -5100 Dear Ms. Michalski - Karney: At the Annual Stockholder's Meeting of the Greater Roanoke Transit Company held on Monday, June 19, 2017, you were reappointed as a member of the Greater Roanoke Transit Company Board of Directors for a one year term, commencing July 1, 2017 and ending June 30, 2018. After the Oath has been administered, please return one copy 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. For recordkeeping purposes, complete the online application at www.roanokeva.gov. 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_ -' 0-4 ¢ c7- �do ,j- Cecelia F. McCoy O Assistant Secretary Enclosures Karen Michalski - Karney June 26, 2017 Page 2 PC: Carl L. Palmer, General Manager, Valley Metro Kevin Price, Assistant General Manager, Valley Metro Sherman M. Stovall, Assistant Vice - President of Operations Daniel J. Callaghan, General Counsel Laura Carini, Assistant General Counsel Barbara A. Dameron, Treasurer COMMONWEALTH OF VIRGINIA ) To -wit: CITY OF ROANOKE ) I, Cecelia F. McCoy, 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 Annual Stockholder's meeting of the Greater Roanoke Transit Company, which was held on the nineteenth day of June 2017, KAREN MICHALSKI- KARNEY was reappointed as a member of the Greater Roanoke Transit Company Board of Directors for a one -year term of office, commencing July 1, 2017 and ending June 30, 2018. Given under my hand and the Seal of the Greater Roanoke Transit Company this twenty -sixth day of June 2017. ez"�, J. `' Assistant Secretary 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, commencing July 1, 2017 and ending June 30, 2018, according to the best of my ability. (So help me God) Karen Michalski -Ka ney Q The foregoing oath of office was taken, sworn to, and subscribed before me by Karen Michalski - Karney this day of 2017. Brenda S. Hamilton, Clerk of the Circuit Court GREATER ROANOKE TRANSIT COMPANY BOARD OF DIRECTORS June 26, 2017 The Honorable William D. Bestpitch Council Member Roanoke, Virginia Dear Council Member Bestpitch: At the Annual Stockholder's Meeting of the Greater Roanoke Transit Company held on Monday, June 19, 2017, you were reappointed as member of the Greater Roanoke Transit Company Board of Directors for a one year term, commencing July 1, 2017 and ending June 30, 2018. 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 appointment and each member is required "to read and become familiar with provisions of the Act." Sincerely, Cecelia F. McCoy Assistant Secretary Enclosures PC: Carl L. Palmer, General Manager, Valley Metro Kevin Price, Assistant General Manager, Valley Metro Sherman M. Stovall, Assistant Vice - President of Operations Daniel J. Callaghan, General Counsel Laura Carini, Assistant General Counsel Barbara A. Dameron, Treasurer COMMONWEALTH OF VIRGINIA ) To -wit: CITY OF ROANOKE ) I, Cecelia F. McCoy, 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 Annual Stockholder's meeting of the Greater Roanoke Transit Company, which was held on the nineteenth day of June 2017, WILLIAM D. BESTPITCH was reappointed as a member of the Greater Roanoke Transit Company Board of Directors for a one -year term of office, commencing July 1, 2017 and ending June 30, 2018. Given under my hand and the Seal of the Greater Roanoke Transit Company this twenty -sixth day of June 2017. Assistant Secretary GREATER ROANOKE TRANSIT COMPANY BOARD OF DIRECTORS June 16, 2015 The Honorable Anita J. Price Council Member Roanoke, Virginia Dear Council Member Price: At the Annual Meeting of the Greater Roanoke Transit Company Stockholders held on Monday, June 19, 2017, you were reappointed as a member of the Greater Roanoke Transit Company Board of Directors for a one year term, commencing July 1, 2017 and ending June 30, 2018. 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 reappointment and each member is required "to read and become familiar with provisions of the Act." Sincerely, Cecelia F. McCoy Assistant Secretary Enclosures PC: Carl L. Palmer, General Manager, Valley Metro Kevin Price, Assistant General Manager, Valley Metro Sherman M. Stovall, Assistant Vice - President of Operations Daniel J. Callaghan, General Counsel Laura Canni, Assistant General Counsel Barbara A. Dameron, Treasurer COMMONWEALTH OF VIRGINIA To -wit' CITY OF ROANOKE I, Cecelia F. McCoy, 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 Annual Stockholder's meeting of the Greater Roanoke Transit Company, which was held on the nineteenth day of June 2017, ANITA J. PRICE was reappointed as a member of the Greater Roanoke Transit Company Board of Directors for a one - year tens of office, commencing July 1, 2017 and ending June 30, 2018. Given under my hand and the Seal of the Greater Roanoke Transit Company this twenty -sixth day of June 2017. Assistant Secretary GREATER ROANOKE TRANSIT COMPANY BOARD OF DIRECTORS June 26, 2017 Michael B. Shockley, Director General Services Sustainability Roanoke, Virginia Dear Mr. Shockley: At the Annual Stockholder's Meeting of the Greater Roanoke Transit Company held on Monday, June 19, 2017, you were reappointed as a member of the Greater Roanoke Transit Company Board of Directors for a one year term, commencing July 1, 2017 and ending June 30, 2018. Church Avenue, S. W. After the Oath has been administered, please return one copy 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. For recordkeeping purposes, complete the online application at www.roanokeva.gov, under Upcoming Vacancies on Council- appointed Bodies. 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, Cecelia F. McCoy Assistant Secretary Enclosures Michael Shockley June 26, 2017 Page 2 PC: Carl L. Palmer, General Manager, Valley Metro Kevin Price, Assistant General Manager, Valley Metro Sherman M. Stovall, Assistant Vice - President of Operations Daniel J. Callaghan, General Counsel Laura Carini, Assistant General Counsel Barbara A. Dameron, Treasurer COMMONWEALTH OF VIRGINIA To -wit: CITY OF ROANOKE I, Cecelia F. McCoy, 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 Annual Stockholder's meeting of the Greater Roanoke Transit Company, which was held on the nineteenth day of June 2017, MICHAEL B. SHOCKLEY was reappointed as a member of the Greater Roanoke Transit Company Board of Directors for a one -year term of office, commencing July 1, 2017 and ending June 30, 2018. Given under my hand and the Seal of the Greater Roanoke Transit Company this twenty -sixth day of June 2017. Assistant Secretary Oath or Affirmation of Office Commonwealth of Virginia, City of Roanoke, to -wit: I, Michael B. Shockley, 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, commencing July 1, 2017 and ending June 30, 2018, according to the best of my ability. (So help me God) I AEL I. SHOCKLEY The foregoing oath of office was taken, sworn to, and subscribed before me by Michael B. Shockley this 'jL day of 2017. Brenda S. Hamilton, Clerk of the Circuit Court By Yo%uI Clerk GREATER ROANOKE TRANSIT COMPANY BOARD OF DIRECTORS June 26, 2017 Curtis E. Mills 2125 Yellow Mountain Road, S. W. Apartment 110 Roanoke, Virginia 24014 Dear Mr. Mills: At the Annual Stockholder's Meeting of the Greater Roanoke Transit Company held on Monday, June 19, 2017, you were reappointed as a member of the Greater Roanoke Transit Company Board of Directors for a one year term, commencing July 1, 2017 and ending June 30, 2018. After the Oath has been administered, please return one copy 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. For recordkeeping purposes, complete the online application at www.roanokeva.Qov, under Upcoming Vacancies on Council- appointed Bodies. 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, () ,J. msezi,� Cecelia F. McCoy Assistant Secretary Enclosures Curtis E. Mills June 26, 2017 Page 2 PC: Carl L. Palmer, General Manager, Valley Metro Kevin Price, Assistant General Manager, Valley Metro Sherman M. Stovall, Assistant Vice - President of Operations Daniel J. Callaghan, General Counsel Laura Carini, Assistant General Counsel Barbara A. Dameron, Treasurer COMMONWEALTH OF VIRGINIA To -wit: CITY OF ROANOKE I, Cecelia F. McCoy, 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 Annual Stockholder's meeting of the Greater Roanoke Transit Company, which was held on the nineteenth day of June 2017, CURTIS E. MILLS was reappointed as a member of the Greater Roanoke Transit Company Board of Directors for a one -year term of office, commencing July 1, 2017 and ending June 30, 2018. Given under my hand and the Seal of the Greater Roanoke Transit Company this twenty -sixth day of June 2017. o vyo_� Assistant Secretary Oath or Affirmation of Office Commonwealth of Virginia, City of Roanoke, to -wit: I, Curtis E. Mills, 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, commencing July 1, 2017 and ending June 30, 2018, according to the best of my ability. (So help me God) a� CURTIS E. LS The foregoing oath of office was Itaken, sworn to, and subscribed before me by Curtis E. Mills this L?_ day of 2017. Brenda S. Hamilton, Clerk of the Circuit Court Va11e'1/ M Greater Roanoke Transit Company Roanoke, Virginia June 1, 2017 William D. Bestpitch, President and Members of the Board of Directors Dear President Bestpitch and Members of the Board: Subject: Greater Roanoke Transit Company April 2017 Financial Report The attached report provides financial performance information for April of Fiscal Year (FY) 2017. On a year -to -date basis, Greater Roanoke Transit Company (GRTC) experienced net income of $867,265 an increase of $613,743 compared to the same period in FY 2016. The significant factors affecting financial performance are outlined below. Revenue Total revenue increased 9.2% over the same period last year and is 7.2% above the established budget. Significant factors impacting revenue include: • Fare Revenues decreased approximately 5.2% compared to FY 2016 and are approximately 6.9 °% below the established budget. • Other Revenues (advertising, building rental, parking, miscellaneous) increased 16.7% compared to the prior year and are 23.6% above the established budget. • Federal and State Revenue increased 16.2% and is performing at a level that exceeds budget expectations. Expenses Total expenses increased 1.4% compared to FY 2016 and are performing approximately 2.1% below the established budget. Significant factors impacting expenses include: • Labor and Fringe Benefits increased approximately 5.4% but are performing within 1 °% of the established budget. • Services increased approximately 6% but are 4% below the established budget. Greater Roanoke Transit Company William D. Bestpitch, President and Members of the Board of Directors GRTC Financials June 1, 2017 Page 2 • Materials and Supplies decreased 10.2% and are 2.4% below the established budget. • Utilities decreased .7° %and are 8.1 °% below the established budget. • Property insurance decreased 30.6% and is 27.9 °% below the established budget. • Miscellaneous Expense increased approximately 4.9% but is within 1% of the established budget. 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 Ten Months Ending April 30, 2017 FY FY FY 17 2017 2016 BUDGET % FY 17 April April TOTAL BUDGET OPERATING INCOME Operating Revenue $1,622,688.14 $1,711,709.36 $2,122,720.00 76.44% Non - Transportation Revenues 238,438.50 204,311.93 223,084.00 106.88% Total Income $1,861,126.64 $1,916,021.29 $2,345,804.00 79.34% OPERATING EXPENSES Labor - Hourly & Salary $3,185,507.57 $3,067,718.05 $3,756,673.00 84.80% Fringe Benefits 1,447,713.20 1,329,216.03 1,804,992.00 80.21% Services 467,620.54 441,015.78 589,465.00 79.33% Materials & Supplies 1,020,977.47 1,137,24157 1,261,734.00 80.92% Utilities 197,287.04 198,706,96 262,212.00 75.24% Insurance Costs 210,480.70 303,337.22 379,475.00 55.47% Miscellaneous Expenses 1084,157.52 1033713.30 1,313,092.00 82.57% Total Expenses $7,613,744.04 $7,510,950.91 $9,367,643.00 81.28% Net LOSS ($5,752,617.40) ($5,594,929.62) ($7,021,839.00) 81.92% Local Grants $1,942,791.70 $1,824,636.48 $2,312,924.00 84.00% State Grants 1,825,644.13 1,412,453.00 1,709,287.00 106.81% Federal Grants 2851447.00 2,611,363.00 2,999,628.00 95.06% Total Subsidies $6,619,882.83 $5,848,452.48 $7,021,839.00 91 Net Income (loss) $867265.43 $253522.86 GREATER ROANOKE TRANSIT COMPANY SUMMARY OF STATEMENT OF NET POSITION 4/30/2017 4/30/2016 Year -to -Date Year -to -Date %of Change ASSETS CASH ACCOUNTS RECEIVABLE INVENTORY FIXED ASSETS FIXED ASSETS ACCUMULATED DEPRECIATION NET FIXED ASSETS PREPAYMENTS TOTAL ASSETS CURRENT LIABILITIES ACCOUNTS PAYABLE PAYROLL LIABILITIES OTHER LIABILITIES CAPITAL CAPITAL STOCK GRANTS DEPRECIATION EXPENSE RETAINED EARNINGS CAPITAL CONTRIBUTIONS NET INCOME (LOSS) TOTAL CAPITAL TOTAL LIABILITIES & CAPITAL $ 1,131,082.11 $ 1,046,929.62 8% $ 961,982.69 $ 692,699.24 39% $ 457,774.53 $ 545,257.78 -16% $ 32,453,517.28 $ 32,199,271.71 1% $ (22,316,531.89) $ (21,396,517.73) 4% $ 10,136,985.39 $ 10,802,753.98 -6% $ 74,896.13 $ 92,137.32 -19% $ 12,762,720.85 $ 13,179,777.94 -3% $ 295,822.08 $ $ 425,165.34 $ 4,055,222.10 -30% $ 357,876.43 -5% $ 359,139.87 (1,592,288.30) 0% $ 675,514.32 $ $ 699,183.30 $ 939,817.00 -3% $ 5.00 $ 5.00 0% $ 4,055,222.10 $ 4,271,876.60 -5% $ (1,427,488.10) $ (1,592,288.30) -10% $ 6,998,686.59 $ 8,399,814.27 -17% $ 939,817.00 $ 363,359.00 159% $ 867,265.43 $ 253,522.86 242% $ 11,433,508.02 $ 11,696,289.43 -2% $ 12,762,720.85 $ 13,179,777.94 -3% GREATER ROANOKE TRANSIT COMPANY BOARD OF DIRECTORS July 12, 2017 William D. Bestpitch, President, and Members of the Greater Roanoke Transit Company Board of Directors Dear President Bestpitch and Members of the Board: The regular meeting of the Greater Roanoke Transit Company Board of Directors will be held on Monday, July 17, 2017, 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, Cecelia F. McCoy Assistant Secretary PC: Daniel J. Callaghan, General Counsel, GRTC Barbara A. Dameron, Treasurer, GRTC Troy A. Harmon, Municipal Auditor Sherman M. Stovall, Assistant Vice President of Operations, GRTC Laura M. Carini, Assistant General Counsel, GRTC Carl L. Palmer, General Manager, Valley Metro, P. O. Box 13247, Roanoke, Virginia 24032 Kevin Price, Assistant General Manager, Valley Metro, P. O. Box 13247, Roanoke, Virginia 24032 Stephanie Giles, Director of Finance, Valley Metro, P. O. Box 13247, Roanoke, Virginia 24032 K: \GRTC - AgendaM17\July 17, 17 - Call Letler.doc GREATER ROANOKE TRANSIT COMPANY BOARD OF DIRECTORS July 17, 2017 1:00 P.M. EOC CONFERENCE ROOM ROOM 159 AGENDA Call to Order -- Roll Call. Director Karen Michalski - Karney and President William D. Bestpitch were absent. Vice - President Anita J. Price served as the Presiding Officer. 2. Approval of Minutes: Regular meeting of GRTC held on Monday, June 19, 2017. Without objection, the reading of the minutes were dispensed and approved as recorded. 3. Reports of Officers: a. Secretary: Election of Officers Following were appointed to serve as the Board of Directors for terms of one year, each, ending June 30, 2018: Council Member William D. Bestpitch, President Vice -Mayor Anita James Price, Vice - President City Manager (Vacant) as Vice - President of Operations Sherman M. Stovall, Assistant City Manager for Operations as Assistant Vice - President of Operations Stephanie M. Moon Reynolds, City Clerk as Secretary Cecelia F. McCoy, Deputy City Clerk as Assistant Secretary Barbara A. Dameron, Director of Finance as Treasurer Daniel J. Callaghan, City Attorney as General Counsel KIGRTC - Action Agenda1P017Wuly 17, 2017 Action Agenda doe b. General Manager: Management Update for July 17, 2017 • Fuel Management Audit • Collective Bargaining Agreement • Triennial Review • Fiscal 2017 Ridership Without objection, the Management Update was received and filed. Greater Roanoke Transit Company May 2017 Financial Report. Without objection, the Financial Report was received and filed. Authorization to Schedule Public Hearing on Fare Adjustment and Amendment of the STAR Monthly Fare Pass Policy. Adopted Authorization to Schedule Public Hearing (5 -0) 4. Other Business: None. 5. Next Meeting: September 18, 2017 at 1:00 p.m., EOC Conference Room, Room 159, First Floor. 6. Adjournment. 1:13 p.m. K \GRTC -Action AgendaW 7Uuly 17, 2017 Action Agenda.doc GREATER ROANOKE TRANSIT COMPANY BOARD OF DIRECTORS July 20, 2017 The Honorable William D. Bestpitch Council Member Roanoke, Virginia Dear Council Member Bestpitch: At a regular meeting of the Greater Roanoke Transit Company Board of Directors held on Monday, July 17, 2017, you were reappointed as the President for a one -year term of office ending June 30, 2018. Enclosed you will find a Certificate of your reappointment. Sincerely, Stephanie M. Moon Reynolds, M Secretary Enclosure pc: Carl L. Palmer, General Manager, Valley Metro, P.O. Box 13247, Roanoke, Virginia 24032 Sherman M. Stovall, Assistant Vice - President for Operations, GRTC Daniel J. Callaghan, General Counsel, GRTC / /smmoon /GRTC.17 /Reappointment of Officers.doc COMMONWEALTH OF VIRGINIA To -wit: CITY OF ROANOKE I, Stephanie M. Moon Reynolds, Secretary, and as such Secretary of the Greater Roanoke Transit Company Board and keeper of the records thereof, do hereby certify that at a regular meeting of the Greater Roanoke Transit Company Board of Directors held on the seventeenth day of July 2017, WILLIAM D. BESTPITCH was reappointed as the President for a one -year term of office ending June 30, 2018. Given under my hand and the Seal of the Greater Roanoke Transit Company this twentieth day of July 2017. Un .-Y'Jn Secretary / /smmoon /GRTC.17 /Reappointment of Officers.doc GREATER ROANOKE TRANSIT COMPANY BOARD OF DIRECTORS July 20, 2017 The Honorable Anita James Price Vice -Mayor Roanoke, Virginia Dear Vice -Mayor Price: At a regular meeting of the Greater Roanoke Transit Company Board of Directors held on Monday, July 17, 2017, you were reappointed as the Vice - President for a one -year term ending June 30, 2018. Enclosed you will find a Certificate of your reappointment. Sincerely, Stephanie M. Moon Reynolds, MMC Secretary Enclosures PC: Carl L. Palmer, General Manager, Valley Metro, P.O. Box 13247, Roanoke, Virginia 24032 Sherman M. Stovall, Assistant Vice - President for Operations Daniel J. Callaghan, General Counsel / /smmoon /GRTC.17 /Reappointment of Officers.doc COMMONWEALTH OF VIRGINIA To -wit: CITY OF ROANOKE I, Stephanie M. Moon Reynolds, Secretary, and as such Secretary of the Greater Roanoke Transit Company Board and keeper of the records thereof, do hereby certify that at a regular meeting of the Greater Roanoke Transit Company Board of Directors held on the seventeenth day of July 2017, ANITA JAMES PRICE was reappointed as the Vice - President for a one -year term of office ending June 30, 2018. Given under my hand and the Seal of the Greater Roanoke Transit Company this twentieth day of July 2017. W04'.0 ky\ 'yo �� Secretary / /smmoon /GRTC.17 /Reappointment of Officers.doc GREATER ROANOKE TRANSIT COMPANY BOARD OF DIRECTORS July 20, 2017 Stephanie M. Moon Reynolds City Clerk Roanoke, Virginia Dear Ms. Moon Reynolds: At a regular meeting of the Greater Roanoke Transit Company Board of Directors held on Monday, July 17, 2017, as City Clerk, you were reappointed as the Secretary for a one -year term of office ending June 30, 2018. 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, C,�4t/)� Cecelia F. McCoy Assistant Secretary Enclosures PC: Carl L. Palmer, General Manager, Valley Metro, P.O. Box 13247, Roanoke, Virginia 24032 Sherman M. Stovall, Assistant Vice - President for Operations Daniel J. Callaghan, General Counsel, GRTC / /smmoon /GRTC.17 /Reappointment of Officers.doc COMMONWEALTH OF VIRGINIA To -wit: CITY OF ROANOKE I, Cecelia F. McCoy, Assistant Secretary, and as such the Assistant Secretary of the Greater Roanoke Transit Company Board and keeper of the records thereof, do hereby certify that at a regular meeting of the Greater Roanoke Transit Company Board of Directors held on the seventeenth day of July 2017, the City Clerk (Stephanie M. Moon Reynolds) was reappointed as the Secretary for a term of office ending June 30, 2018. Given under my hand and the Seal of the Greater Roanoke Transit Company this twentieth day of July 2017. O.- �_4. Yko_6at Assistant Secretary / /smmoon /GRTC.17 /Reappointment of Officers.doc Oath or Affirmation of Office Commonwealth of Virginia, City of Roanoke, to -wit: I, Stephanie M. Moon Reynolds, City Clerk, 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 the Secretary of the Greater Roanoke Transit Company Board of Directors for a one -year term of office ending June 30, 2018, according to the best of my ability. So help me God. ou J EPHANIE M. MOO1 E NOL The foregoing oath of office was taken, sworn to, and subscribed before me by Stephanie M. Moon Reynolds this day of 2017. Brenda S. Hamilton, Clerk of the Circuit Court B t k / /smmoon /GRTC.17 /Reappointment of Officers.doc GREATER ROANOKE TRANSIT COMPANY BOARD OF DIRECTORS July 20, 2017 Barbara A. Dameron Director of Finance Roanoke, Virginia Dear Ms. Dameron: At a regular meeting of the Greater Roanoke Transit Company Board of Directors held on Monday, July 17, 2017, as the Director of Finance, you were reappointed as the Treasurer for a one year term ending June 30, 2018. 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 Reynolds, MMC Secretary Enclosures PC: Carl L. Palmer, General Manager, Valley Metro, P.O. Box 13247, Roanoke, Virginia 24032 Sherman M. Stovall, Assistant Vice - President for Operations, GRTC Daniel J. Callaghan, General Counsel, GRTC / /smmoon /G RTC. 17 /Reappointment of Officers.doc COMMONWEALTH OF VIRGINIA To -wit: CITY OF ROANOKE I, Stephanie M. Moon Reynolds, Secretary, and as such Secretary of the Greater Roanoke Transit Company Board and keeper of the records thereof, do hereby certify that at a regular meeting of the Greater Roanoke Transit Company Board of Directors held on the seventeenth day of July 2017, the Director of Finance (Barbara A. Dameron) was reappointed as the Treasurer for a one -year term of office ending June 30, 2018. Given under my hand and the Seal of the Greater Roanoke Transit Company this twentieth day of July 2017. Secrets ' U / /smmoon /GRTC.17 /Reappointment of Officers.doc GREATER ROANOKE TRANSIT COMPANY BOARD OF DIRECTORS July 20, 2017 Daniel J. Callaghan City Attorney Roanoke, Virginia Dear Mr. Callaghan: At a regular meeting of the Greater Roanoke Transit Company Board of Directors held on Monday, July 17, 2017, as the City Attorney, you were reappointed as the General Counsel and Registered Agent fora one -year term of office ending June 30, 2018. 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, y� �rJ 1 r 1 • �'�^�rOVXA ✓ Stephanie M. Moon Reynolds, MIMIC Secretary Enclosures pc: Carl L. Palmer, General Manager, Valley Metro, P.O. Box 13247, Roanoke, Virginia 24032 Sherman M. Stovall, Assistant Vice - President for Operations, GRTC Laura Canni, Assistant General Counsel, GRTC / /smmoon /GRTC.17 /Reappointment of Officers.doc COMMONWEALTH OF VIRGINIA To -wit: CITY OF ROANOKE I, Stephanie M. Moon Reynolds, Secretary, and as such Secretary of the Greater Roanoke Transit Company Board and keeper of the records thereof, do hereby certify that at a regular meeting of the Greater Roanoke Transit Company held on the seventeenth day of July 2017, the City Attorney (Daniel J. Callaghan) was reappointed as the General Counsel and Registered Agent for a one -year term of office ending June 30, 2018. Given under my hand and the Seal of the Greater Roanoke Transit Company this twentieth day of July 2017. ast Secreta , / /smmoon /CRTC.17 /Reappointment of Officers.doc Oath or Affirmation of Office Commonwealth of Virginia, City of Roanoke, to -wit: I, Daniel J. Callaghan, City Attorney, 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 the General Counsel of the Greater Roanoke Transit Company Board of Directors for a one -year term of office ending June 30, 2018, according to the best of my ability. So help me God. DANI J. CALL HAN The foregoing oath of office!! was taken, swom to, and subscribed before me by Daniel J. Callaghan this ty of Av 2017. Brenda S. Hamilton, Clerk of the Circuit CircuitCourt By r"" � g r C � r QQ / /smmoon /GRTC.17 /Reappointment of Officers.doc GREATER ROANOKE TRANSIT COMPANY BOARD OF DIRECTORS July 20, 2017 Sherman M. Stovall Assistant City Manager for Operations Roanoke, Virginia Dear Mr. Stovall: At a regular meeting of the Greater Roanoke Transit Company Board of Directors held on Monday, July 17, 2017, as the Assistant City Manager for Operations, you were reappointed as the Assistant Vice - President of Operations for a one -year term of office ending June 30, 2018. 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, t n n ,/i 04 Stephanie M. Moon ReynoI , MMC Secretary Enclosures PC: Carl L. Palmer, General Manager, Valley Metro, P.O. Box 13247, Roanoke, Virginia 24032 Laura Carini, Assistant General Counsel, GRTC / /smmoon /GRTC.17 /Reappointment of Officers.doc COMMONWEALTH OF VIRGINIA To -wit: CITY OF ROANOKE I, Stephanie M. Moon Reynolds, Secretary, and as such Secretary of the Greater Roanoke Transit Company Board and keeper of the records thereof, do hereby certify that at a regular meeting of the Greater Roanoke Transit Company held on the seventeenth day of July 2017, the Assistant City Manager for Operations (Sherman M. Stovall) was reappointed as the Assistant Vice- President of Operations for a one -year term of office ending June 30, 2018. Given under my hand and the Seal of the Greater Roanoke Transit Company this twentieth day of July 2017. Secretary / /smmoon /GRTC.17 /Reappointment of Officers.doc Oath or Affirmation of Office Commonwealth of Virginia, City of Roanoke, to -wit: I, Sherman M. Stovall, Assistant City Manager for Operations, 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 the Assistant Vice - President of Operations of the Greater Roanoke Transit Company Board of Directors for a one -year term of office ending June 30, 2018, according to the best of my ability. So help me God. The foregoing oath of office w s taken, sworn to, and subscribed before me by Sherman M. Stovall this day of dl� 2017. Brenda S. Hamilton, Clerk of the Circuit Court By py� ro, " Clerk / /smmoon /GRTC.17 /Reappointment of Officers.doc GREATER ROANOKE TRANSIT COMPANY BOARD OF DIRECTORS July 20, 2017 Cecelia F. McCoy Deputy City Clerk Roanoke, Virginia Dear Ms. McCoy: At a regular meeting of the Greater Roanoke Transit Company Board of Directors held on Monday, July 17, 2017, as the Deputy City Clerk, you were reappointed as the Assistant Secretary for a one -year term ending June 30, 2018. 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 Reynolds, MMC Secretary Enclosures pc: Carl L. Palmer, General Manager, Valley Metro, P.O. Box 13247, Roanoke, Virginia 24032 Sherman M. Stovall, Assistant Vice - President for Operations Daniel J. Callaghan, General Counsel, GRTC / /smmoon /GRTC.17 /Reappointment of Officers.doc COMMONWEALTH OF VIRGINIA To -wit: CITY OF ROANOKE I, Stephanie M. Moon Reynolds, Secretary, and as such Secretary of the Greater Roanoke Transit Company Board and keeper of the records thereof, do hereby certify that at a regular meeting of the Greater Roanoke Transit Company Board of Directors held on the seventeenth day of July 2017, the Deputy City Clerk (Cecelia F. McCoy) was reappointed as the Assistant Secretary for a term of office ending June 30, 2018. Given under my hand and the Seal of the Greater Roanoke Transit Company this twentieth day of July 2017. Secretary / /smmoon /GRTC.17 /Reappointment of Officers.doc Oath or Affirmation of Office Commonwealth of Virginia, City of Roanoke, to -wit: I, Cecelia F. McCoy, Deputy City Clerk, 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 the Assistant Secretary of the Greater Roanoke Transit Company Board of Directors for a one -year term of office ending June 30, 2018, according to the best of my ability. So help me God. CECELIA F. MCCOY The foregoing oath of office was taken, sworn to, and subscribed before me by Cecelia F. McCoy this�'day of 2017. Brenda S. Hamilton, Clerk of the Circuit Court / /smmoon /GRTC.17 /Reappointment of Officers.doc V4��ey M Greater Roanoke Transit Company Board of Directors Meeting Management Update July 17, 2017 Fuel Management Audit The fuel management audit conducted by the City Roanoke's Municipal Auditor's office has been completed in draft form. Staff is in the process of reviewing the report and will schedule a meeting with the auditor to discuss the findings. As reported in the May 15, 2017 Management Update, the auditor discovered in a prior contract (September 2015 to August 2016) a discrepancy between the fuel vendor's bid quote for differential costs (the carrying charges and related fees for deliveries) and how it was accounted for in the vendor's contract with GRTC. This discrepancy resulted in GRTC making an overpayment in the amount of $24,795 for that contract period. The matter has been addressed by management. GRTC's June invoice was adjusted to credit GRTC in the amount of the overpayment. Collective Bargaining Agreement Negotiations with the Amalgamated Transit Union (ATU), Local 1493 were conducted on June 20 and 21; 2017. Agreement was not reached on all of the items negotiated. The parties agreed to resume negotiations on August 9 and 10, 2017. In that the current collective bargaining unit agreement expired June 30, 2017, the parties signed a month to month contract extension agreement. The terms and conditions of the current agreement will remain in effect until a new agreement is fully executed. Triennial Review The Federal Transit Administration (FTA) conducted a Triennial Review on May 30 and May 31. The review covered fiscal years 2014 through 2016, plus the fisrt six (6) months of fiscal 2017. The review determines whether or not a grantee is administering its FTA funded programs in accordance with FTA regulations. Seventeen (17) FTA funded program areas were reviewed. There were specific elements (not all) within nine (9) of the 17 areas that were found to be "deficient." All of the identified defeciencies addressed documentation and procedural shortfalls. Staff has up to 90 days from the date of the published final report (on or about July 31. 2017) to submit corrective action plans to remedy the shortfalls. Fiscal 2017 Ridership Overall, ridership for FY 2017 year to date as of May 2017 is 4.2% below FY 2016. GRTC's ridership percentage change for May year to date for FY17 compared to May year to date for FY16 for each GRTC service type is detailed below: Fixed Route: (4.3 %) Smart Way: (12.2 %) Smart Way Connector: (2.4 %) Star Line Trolley: (2.7 %) STAR: 4% Greater Roanoke Transit Company PO Box 13247 • Roanoke, Virginia 24032 • Phone: 540.982.0305 • Fax:540.982.2703 www.valleymetro.com Respectfull Su i d, arl L. mer General Manager Copy: Vice President of Operations Assistant Vice President of Operations Treasurer Secretary GRTC General Counsel Municipal Auditor W=1140 YE % M Greater Roanoke Transit Company Roanoke, Virginia July 17, 2017 William D. Bestpitch, President and Members of the Board of Directors Dear President Bestpitch and Members of the Board: Subject: Greater Roanoke Transit Company May 2017 Financial Report The attached report provides financial performance information for May of Fiscal Year (FY) 2017. On a year -to -date basis, Greater Roanoke Transit Company (GRTC) experienced net income of $766,159 an increase of $659,629 compared to the same period in FY 2016. The significant factors affecting financial performance are outlined below. Revenue Total revenue increased 9.2% over the same period last year and is 5.4% above the established budget. Significant factors impacting revenue include: • Fare Revenues decreased approximately 5% compared to FY 2016 and are approximately 8.2% below the established budget. • Other Revenues (advertising, building rental, parking, miscellaneous) increased 18.3% compared to the prior year and are 24.9% above the established budget. • Federal and State Revenue increased 16.3% and is performing at a level that exceeds budget expectations. Expenses Total expenses increased 1.3% compared to FY 2016 and are performing approximately 2.8% below the established budget. Significant factors impacting expenses include: • Labor and Fringe Benefits increased approximately 5.3% but are performing within 1% of the established budget. • Services increased approximately 5% but are 5.9 °% below the established budget. Greater Roanoke Transit Companv William D. Bestpitch, President and Members of the Board of Directors GRTC Financials July 17, 2017 Page 2 • Materials and Supplies decreased 10.4 °%and are 3.3% below the established budget. • Utilities decreased 4% and are 9.8% below the established budget. • Property insurance decreased 30 °% and is 30.3% below the established budget. • Miscellaneous Expense increased approximately 5.4% but is within 1 °%of the established budget. Respectfully Submitted, 446.11 - 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 Eleven Months Ending May 31, 2017 FY FY FY 17 2017 2016 BUDGET % OF FY 17 May May TOTAL BUDGET OPERATING INCOME Operating Revenue $1772,085.48 $1,864,477.32 $2,122,720.00 83.48% Non - Transportation Revenues 260,022.27 219,743.87 223,084.00 116.56% Total Income $2,032,107.75 $2,084,221.19 $2,345,804.00 86.63% OPERATING EXPENSES Labor - Hourly B Salary $3,471,044.46 $3,350,561.35 $3,756,673.00 92.40% Fringe Benefits 1,583,903.87 1,448,242.22 1,804,992.00 87.75% Services 505,803.73 481,575.88 589,465.00 85.81% Materials B Supplies 1,114,548.86 1,243,816.43 1,261,734.00 88.33% Utilities 214,556.30 223,595.53 262,212.00 81.83% Insurance Costs 233,045.25 332,880.77 379,475.00 61.41 % Miscellaneous Expenses 1,205166.80 1.14309944 1,313,092.00 91.78% Total Expenses $8,328,069.27 $8,223,771.62 $9,367,643.00 88.90% Net LOSS ($6,295,961.52) ($6,139,550.43) ($7,021,839.00) 89.66% Local Grants $2,135,140.45 52,008,891.96 $2,312,924.00 92.31% State Grants 2,001,851.13 1,551,762.00 1,709,28700 117.12% Federal Grants 2925129.00 2685427.00 2,999,628.00 97.52% Total Subsidies $7,062,120.58 $6,246,080.96 $7,021,839.00 100.57% Net Income (loss) $766,15906 $106,530.53 GREATER ROANOKE TRANSIT COMPANY SUMMARY OF STATEMENT Of NET POSITION 5/31/2017 5/31/2016 Year -to -Date Year -to -Date %of Change ASSETS CASH $ 1,853,150.03 $ 1,100,676.90 68% ACCOUNTS RECEIVABLE $ 395,594.16 $ 610,522.16 -35% INVENTORY $ 455,983.33 $ 555,275.72 -18% FIXED ASSETS FIXED ASSETS $ 32,472,371.55 $ 32,213,554.66 1% ACCUMULATED DEPRECIATION $ (22,459,917.49) $ (21,555,954.51) 4% NET FIXED ASSETS $ 10,012,454.06 $ 10,657,600.15 -6% PREPAYMENTS $ 45,640.05 $ 51,227.51 -11% TOTAL ASSETS $ 12,762,821.63 $ 12,975,302.44 -2% CURRENT LIABILITIES ACCOUNTS PAYABLE $ 366,472.48 $ 410,823.83 -11% PAYROLL LIABILITIES $ 356,160.07 $ 358,064.61 -1% OTHER LIABILITIES $ 850,736.03 $ 804,587.68 6% CAPITAL CAPITAL STOCK $ 5.00 $ 5.00 0% GRANTS $ 4,055,222.10 $ 4,271,876.60 -5% DEPRECIATION EXPENSE $ (1,570,873.70) $ (1,751,725.08) -10% RETAINED EARNINGS $ 6,998,686.59 $ 8,399,814.27 -17% CAPITAL CONTRIBUTIONS $ 940,254.00 $ 375,325.00 151% NET INCOME (LOSS) $ 766,159.06 $ 106,530.53 619% TOTAL CAPITAL $ 11,189,453.05 $ 11,401,826.32 -2% TOTAL LIABILITIES & CAPITAL $ 12,762,821.63 $ 12,975,302.44 -29/ GREATER ROANOKE TRANSIT COMPANY BOARD OF DIRECTORS July 20, 2017 Carl L. Palmer, General Manager Valley Metro P. O. Box 13247 Roanoke, Virginia 24032 Dear Mr. Palmer: Your report requesting authorization to schedule a public hearing on the proposed fare adjustment and limit on the number of rides allowed with the STAR monthly pass, subject to availability of the Board of Directors, the hearing shall be held at 7:00 p.m. between Monday, August 28 and Thursday, August 31 or between Monday, October 23 and Thursday, October 28 in the EOC Conference Room, was before the Greater Roanoke Transit Company Board of Directors at its regular meeting held on Monday, July 17, 2017. On motion, duly seconded and adopted, the Board concurred in your request Sincerely, V Stephanie M. Mo on eynoltts' Secretary PC: Sherman M. Stovall, Assistant Vice - President of Operations Barbara A. Dameron, Treasurer Daniel J. Callaghan, General Counsel Laura Carini, Assistant General Counsel Troy A. Harmon, Municipal Auditor Kevin Price, Assistant General Manager, Valley Metro, P. O. Box 13247, Roanoke, Virginia 24032 Vsa��er M Greater Roanoke Transit Company Board of Directors Meeting Action Item July 17, 2017 The Honorable William D. Bestpitch, President, and Members of the Board of Directors of Greater Roanoke Transit Company Roanoke, Virginia Dear President Bestpitch and Members of the Board: Subject Authorization to Schedule Public Hearing on Fare Adjustment and Amend the STAR Monthly Fare Pass Policy Background The last fare adjustment was made in 2007, with an increase from $1.25 to $1.50. Since the time of the last fare adjustment, expenses have increased an average of 2.4% each year due to inflationary costs and other factors. The state and federal share of GRTC revenue has decreased 4% and the local support has increased 3 %. Among the three of the larger transit systems in Virginia, GRTC has the lowest base fare at $1.50, compared to $1.75 for Richmond and Hampton Roads and $2.00 for Lynchburg. Currently, the complementary para- transit service for people with disabilities, Specialized Transit Arranged Rides (STAR), has a monthly fare pass policy that affords users unlimited rides each month. It is prudent to establish a reasonable limit on the number of rides allowed per month, per pass holders Considerations The Board has been briefed on the need for a fare adjustment from $1.50 to $1.75 and establishing a limit on the number of rides allowed with the STAR monthly pass. The proposed fare adjustments are outlined in Attachment A to this Board Report. The proposed limit on the number of rides with the STAR monthly pass is 52 rides; the current price of the STAR monthly pass ($ 96.00) will not change. The Federal Transit Administration requires its grantee agencies to conduct well publicized hearings in accordance with 49 U.S.C. 5307(c)(1)(1), Circular 9030.1E, and Circular 4702.1 as a means to solicit comments on the proposed fare changes. Further, State of Virginia Code 15.2- 2204 requires that notice of hearings must follow the prescribed method set forth in said Code. Greater Roanoke Transit Company PO Box 13247 • Roanoke, Virginia 24032 • Phone: 540.982.0305 • Fax:540.982.2703 • www.valleymetro.com Recommendation Authorize the General Manager to schedule a public hearing on the proposed fare adjustment and limit on the number of rides allowed with the STAR monthly pass. Subject to the availability of the Board of Directors., the hearing shall be held at 7:00 p.m. between Monday, August 28t' and Thursday, August 31" or between Monday, October 23t° and Thursday October 26" in the EOC Conference Room. ;Wi Carl L. Palmer General Manager cc: Vice President of Operations Assistant Vice President of Operations Treasurer Secretary GRTC General Counsel Municipal Auditor ATTACHMENT GREATER ROANOKE TRANSIT COMPANY PROPOSED FARE INCREASES CASH CURRENT FARE PROPOSED INCREASE ADULT FARE $ 1.50 $ 1.75 DISCOUNT FARE - SENIOR &DISABLED $ 0.75 $ 0.85 VWCC(FREE BOARD /PD BY VWCC) $ 1.50 $ 1.75 YOUTH 18 & UNDER $ 0.75 $ 0.85 TICKETS 1 RIDE BASIC FARE $ 1.50 $ 1.75 1 RIDE DISCOUNT FARE - SENIOR & DISABLED $ 0.75 $ 0.85 1 RIDE SCHOOL - STUDENTS $ 0.75 $ 0.85 PASSES 24 HOUR PASS - BASIC $ 5.00 $ 3.50 REDUCTION 24 HOUR PASS- DISCOUNT (SENIOR, STUDENTS & DISABLED) $ 2.50 $ 1.70 REDUCTION 15 RIDE PASS -BASIC $ 20.00 $ 20.00 NO CHANGE 15 RIDE PASS- DISCOUNT (SENIOR, STUDENTS, & DISABLED) $ 10.00 $ 10.00 NO CHANGE 7 DAY PASS - BASIC $ 14.00 $ 16.00 7 DAY PASS - DISCOUNT (SENIOR & DISABLED) $ 7.00 $ 8.00 31 DAY PASS - BASIC $ 48.00 $ 56.00 31 DAY PASS - DISCOUNT (SENIOR & DISABLED) $ 24.00 $ 28.00 STAR TICKETS $ 3.00 $ 3.50 STAR TRIP PASSBOOK" $ 96.00 $ 96.00 NO CHANGE LIMIT OF 52 TRIPS PER PASSBOOK GREATER ROANOKE TRANSIT COMPANY July 12, 2017 The Honorable Sherman P. Lea, Sr., and Members of the Roanoke City Council Roanoke, Virginia Re: Special Meeting of Stockholder Dear Mayor Lea and Members of City Council: Pursuant to Section 2, Article II, By -Laws of Greater Roanoke Transit Company, this is to advise you that I am calling a Special Meeting of the Stockholder to be held on Monday, July 17, 2017, at 4:00 p.m., or as soon thereafter as the matter may be heard, in the Council Chamber. Pursuant to Section 3, Article II, By -Laws of Greater Roanoke Transit Company, the purpose of the meeting will be to discuss and /or considerthe acquisition of real property for a public purpose and /orthe disposition of real propertyowned by Greater Roanoke Transit Company, generally known as Campbell Court, located at Salem Avenue, S. W. and Campbell Avenue, S. W„ in Roanoke, Virginia, and bearing Official Tax Map Nos. 1011105, 1011106, 1011107, 1011108, 1011109, 1011110 ,1011116,1011117,1011118, 1011119, 1011120, 1011122, and 1011129, pursuant to Section 2.2 -3711 (A)(3), Code of Virginia (1950), as amended. Sincerely, ��. A� Stephanie M. Moon Reyno ds Secretary PC: Sherman M. Stovall, Assistant Vice President of Operations, GRTC Daniel J. Callaghan, General Counsel, GRTC Barbara A. Dameron, Treasurer, GRTC Troy A. Harmon, Municipal Auditor Laura Carini, Assistant General Counsel, GRTC Carl Palmer, General Manager, Valley Metro, P. O. Box 13247, Roanoke, Virginia 24032 Kevin Price, Assistant General Manager, Valley Metro, P. O. Box 13247, Roanoke, Virginia 24032 KiGRTC -Special Meerings V4 Ri ] Call Letter for Stockholtlers' MeeOng.pop GREATER ROANOKE TRANSIT COMPANY STOCKHOLDER'S SPECIAL MEETING JULY 17, 2017 4:00 P.M. CITY COUNCIL CHAMBER ETeTATk 1 CALL TO ORDER - ROLL CALL. Council Member William D. Bestpitch was absent. 2. STATEMENT OF PURPOSE. Mayor Sherman P. Lea, Sr. To convene in a Closed Meeting to discuss and /or consider the acquisition of real property for a public purpose and /or the disposition of real property owned by Greater Roanoke Transit Company, generally known as Campbell Court, located at Salem Avenue, S. W., and Campbell Avenue, S. W., in Roanoke, Virginia, and bearing Official Tax Map Nos. 1011105, 1011106, 1011107, 1011108, 1011109, 1011110, 1011116, 1011117, 1011118, 1011119, 1011120, 1011122, and 1011129, pursuant to Section 2.2 -3711 (A)(3), Code of Virginia (1950), as amended. 3. RECESSED AT 5:38 p.m. 4. RECONVENED AT 6:30 p.m. CERTIFICATION OF CLOSED MEETING. (6 -0) 5. ADJOURNED AT 6:31 p.m. I., CLLRK DATA efincwy�GR I C- Special Meetings V] -1] -V Stockholders Special Meeting Action Agenda doe STATEMENT OF RAPHAEL E. FERRIS I, Raphael E. Ferris, make the following statement regarding the purpose of the special meeting of stockholder of Greater Roanoke Transit Company, a Virginia corporation ( "GRTC ") to discuss the acquisition of property by GRTC and /or the disposition of properties owned by GRTC, together with buildings and improvements thereon, situated in the area of Salem Avenue, S.W., and Campbell Avenue, S.W., Roanoke, Virginia, bearing Official Tax Map Nos. 1011105, 1011106, 1011107, 1011108, 1011109, 1011110, 1011116, 1011117, 1011118, 1011119, 1011120, 1011122, and 1011129 (collectively, "Campbell Court Facilities "). . I am the owner of certain real property situated at 0 Salem Avenue, S.W., Roanoke, Virginia, bearing Official Tax Map No. 1010412 ( "Parcel 1010412"). The City of Roanoke currently leases this property for use as a parking lot. The tern of the lease is five (5) years expiring on June 30, 2021. Parcel 1010412 is proximate to Campbell Court Facilities. I have no interest in the Campbell Court Facilities. I have also discussed this matter with the City Attorney and he has advised me that my property interest does not create a personal interest in this transaction under the Virginia Conflicts of Interest laws but I may elect to recuse myself from participation in this matter if I believe that my ownership of Parcel 1010412 creates an appearance of a conflict of interest. I believe that I can act fairly, objectively, and in the public interest in considering the purpose of this special meeting of stockholder. Based on the foregoing, I intend to participate in the deliberations and in any vote with regard to the purpose of this special meeting and any subsequent transaction involving the acquisition of property by GRTC and the disposition of the Campbell Court Facilities. In the event that the circumstances on which I make this decision change, I will determine at such time whether a conflict of interest, or the appearance of a conflict of interest, exists and take appropriate action at that time. 1 request that the Secretary of GRTC maintain a copy of this statement with the minutes of this meeting of GRTC. Dated this 17" day of July, 2017. Raph el E. F ris Member of Council GKIi (07J"1 .[') MOTION TO HOLD A CLOSED MEETING OF STOCKHOLDER 1 move for a closed meeting of City Council, sitting as the Stockholder of Greater Roanoke Transit Company (GRTC), pursuant to Section 2.2 -3711 A. 3, Code of Virginia, where discussion or consideration of the acquisition of real property for a public purpose, and /or of the disposition of real property owned by GRTC, where discussion in an open meeting would adversely affect the bargaining position or negotiating strategy of City Council and GRTC. Notion of Anna Rice (07 172017) GREATER ROANOKE TRANSIT COMPANY BOARD OF DIRECTORS August 14, 2017 The Honorable Sherman P. Lea, Sr., and Members of the Roanoke City Council Roanoke, Virginia VIA EMAIL AND HAND - DELIVERY Re: Special Meeting of Stockholder Dear Mayor Lea and Members of City Council Pursuant to Section 2, Article II, By -Laws of Greater Roanoke Transit Company, this is to advise you that I am calling a Special Meeting of the Stockholder of the Greater Roanoke Transit Company to be held on Monday, August 21, 2017, at 4:00 p.m., or as soon thereafter as the matter may be heard, in the Council Chamber, Room 450, 4'" Floor, Noel C. Taylor Municipal Building, 215 Church Avenue, S. W., Roanoke, Virginia. The purpose of the meeting will be to convene in a Closed Meeting to discuss and /or consider acquisition of real property fora public purpose and /or disposition of real property owned by Greater Roanoke Transit Company, generally known as Campbell Court, located at Salem Avenue and Campbell Avenue, S. W., in Roanoke, Virginia, and bearing Official Tax Map Nos. 1011105, 1011106, 1011107, 1011108, 1011109, 1011110, 1011116, 1011117, 1011118, 1011119, 1011120, 1011122, and 1011129, pursuant to Section 2.2- 3711(A)(3), Code of Virginia (1950), as amended. Sincerely, Stephanie M. Moon Re Ids Secretary PC: Sherman M. Stovall, Assistant Vice President of Operations, GRTC Daniel J. Callaghan, General Counsel, GRTC Barbara A. Dameron, Treasurer, GRTC Laura Carini, Assistant General Counsel, GRTC Carl Palmer, General Manager, Valley Metro, P. O. Box 13247, Roanoke, Virginia 24032 Kevin Price, Assistant General Manager, Valley Metro, P. O. Box 13247, Roanoke, Virginia 24032 Troy A. Harmon, Municipal Auditor L\ CLERK \BATA \smmoon \GRTC.1 B -21 -17 Call Letter for Stockholders' Meeting doc GREATER ROANOKE TRANSIT COMPANY BOARD OF DIRECTORS August 23, 2017 The Honorable Sherman P. Lea, Sr., and Members of the Roanoke City Council Roanoke, Virginia Re: Special Meeting of Stockholder Dear Mayor Lea and Members of City Council: Pursuant to Section 2, Article II, By -Laws of Greater Roanoke Transit Company, this is to advise you that I am calling a Special Meeting of the Stockholder of the Greater Roanoke Transit Company to be held on Monday, September 18, 2017, at 4:00 p.m., or as soon thereafter as the matter may be heard, in the Council Chamber, Room 450, 4th Floor, Noel C. Taylor Municipal Building, 215 Church Avenue, S. W., Roanoke, Virginia. The purpose of the meeting will be to convene in a Closed Meeting to discuss and /or consider acquisition of real property for a public purpose and /or disposition of real property owned by Greater Roanoke Transit Company, generally known as Campbell Court, located at Salem Avenue and Campbell Avenue, S. W, in Roanoke, Virginia, and bearing Official Tax Map Nos. 1011105, 1011106, 1011107, 1011108, 1011109, 1011110, 1011116, 1011117, 1011118, 1011119, 1011120, 1011122, and 1011129, pursuant to Section 2.2- 3711(A)(3), Code of Virginia (1950), as amended. Sincerely, Stephanie M. Moon Reynolds Secretary PC: Sherman M. Stovall, Assistant Vice President of Operations, GRTC Troy A. Harmon, Municipal Auditor Daniel J. Callaghan, General Counsel, GRTC Barbara A. Dameron, Treasurer, GRTC Laura Carini, Assistant General Counsel, GRTC Carl Palmer, General Manager, Valley Metro, P. O. Box 13247, Roanoke, Virginia 24032 Kevin Price, Assistant General Manager, Valley Metro, P. O. Box 13247, Roanoke, Virginia 24032 K:\GRTC.17 \9 -18 -17 Call Lefler far Stockholders' M.Ut g(8.22.17).doc GREATER ROANOKE TRANSIT COMPANY STOCKHOLDER'S SPECIAL MEETING MONDAY, AUGUST 21, 2017 5:22 P.M. CITY COUNCIL CHAMBER AGENDA 1. Call to Order - Roll Call. All present. 2. Statement of Purpose. Mayor Sherman P. Lea, Sr. The purpose of the Special Meeting will be to convene in a Closed Meeting to discuss and /or consider acquisition of real property for a public purpose and /or disposition of real property owned by Greater Roanoke Transit Company, generally known as Campbell Court, located at Salem Avenue, S. W., and Campbell Avenue, S. W., in Roanoke, Virginia, and bearing Official Tax Map Nos. 1011105, 1011106, 1011107, 1011108, 1011109, 1011110, 1011116, 1011117, 1011118, 1011119, 1011120, 1011122, and 1011129, pursuant to Section 2.2- 3711(A)(3), Code of Virginia (1950), as amended. 3. Recessed — 5:25 p.m. 4. Reconvened at 6:21 p.m. 5. Certification of Closed Meeting. (7 -0) 6. Adjourned at 6:22 p.m. K ^:GRTC - Special Meetings `.8 -21 -1I St «kholde s' Special Meeting Action Agcndn.dnc CERTIFICATION MOTION I move that each Member of City Council, sitting as the Stockholder of Greater Roanoke Transit Company (GRTC) certifies that to the best of each Member's knowledge (i) only public business matters lawfully exempted from open meeting requirements under Chapter 37 of Title 22 Code of Virginia, Virginia Freedom of Information Act, and (ii) only such public business matters as were identified in the motion by which the closed meeting was convened were heard, discussed or considered in the meeting by the public body. CITY OF ROANOKE OFFICE OF THE CITY CLERK 215 CHURCH AVENUE, S. W. SUITE 456 ROANOKE, VIRGINIA 24011- 1536P-, C,.f uon Wuc. (07 17 2017) GREATER ROANOKE TRANSIT COMPANY BOARD OF DIRECTORS September 13, 2017 William D. Bestpitch, President, and Members of the Greater Roanoke Transit Company Board of Directors Dear President Bestpitch and Members of the Board: The regular meeting of the Greater Roanoke Transit Company Board of Directors will be held on Monday, September 18, 2017, 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, Stephanie M. Moon Reynolds Secretary PC: Robert S. Cowell, Jr., City Manager Sherman M. Stovall, Assistant Vice President of Operations, GRTC Daniel J. Callaghan, General Counsel, GRTC Amelia C. Merchant, Acting Director of Finance Troy A. Harmon, Municipal Auditor Laura M. Carini, Assistant General Counsel, GRTC Carl L. Palmer, General Manager, Valley Metro, P. O. Box 13247, Roanoke, Virginia 24032 Kevin Price, Assistant General Manager, Valley Metro, P. O. Box 13247, Roanoke, Virginia 24032 Stephanie Giles, Director of Finance, Valley Metro, P. O. Box 13247, Roanoke, Virginia 24032 KiGRT0.17 \June 19, 2017 Meeting Nobee.doc GREATER ROANOKE TRANSIT COMPANY BOARD OF DIRECTORS September 18, 2017 1:00 P.M. EOC CONFERENCE ROOM ROOM 159 AGENDA Call to Order -- Roll Call. Vice- President Price and Directors Michalski - Karney and Mills were absent. 2. Approval of Minutes: Regular meeting of GRTC held on Monday, July 17, 2017. Approved and dispensed with. 3. Reports of Officers: a. Secretary: Reports of qualification of Robert S. Cowell, Jr., as Vice - President of Operations of the Greater Roanoke Transit Company Board of Directors for a term ending June 30, 2018; and Amelia C. Merchant, Acting Director of Finance, to fill the unexpired term of Barbara A. Dameron, Director of Finance, resigned, as the Treasurer of the Greater Roanoke Transit Company ending June 30, 2018.: Received and filed. b. General Manager: 1. Management Update: • Collective Bargaining Agreement • Triennial Review • Comprehensive Operational Analysis (COA) • Fiscal 2017 Ridership Received and filed. 2. Fiscal Year 2017 Financial Report (Unaudited) Received and filed. L\CLERM0ATA\smmoon \GRTC.1 ASeptember 18, 2817 Action Agenda.doc 4. Other Business. a. Municipal Auditing Report — Greater Roanoke Transit Company Fuel Management dated July 28, 2017. Received and filed. 5. Next Meeting: November 20, 2017 at 1:00 p.m., in the EOC Conference Room. President announced that a public hearing will be held on Thursday, October 26, 2017, at 7:00 p.m. — 9:00 p.m., in the EOC Conference Room, Room 159, 1s` floor, Noel C. Taylor Municipal Building, to receive citizen comments on proposed adjustments in the single ride basicfare from $1.50 to $1.75, fare for passes, and the limit on the number of rides allowed with the Specialized Transit Arranged Rides (STAR) monthly fare pass. He added that the Valley Metro bus hours will be extended in order to accommodate riders needing transportation. 6. Adjourn. — 1:20 p.m. L:\ CLERK \DATA\ mm. \GRTC.17 \September 18, 2017 AcU. Agmda.d. Oath or Affirmation of Office Commonwealth of Virginia, City of Roanoke, to -wit: I, Robert S. Cowell, Jr., 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 Vice - President of Operations of the Greater Roanoke Transit Company Board of Directors for a term of office ending June 30, 2018, according to the best of my ability. (So help me God) ROBERTS] COWELL, JR. The foregoing oath of office was taken, sworn to, and subscribed before me by Robert S. Cowell, Jr., this day ofb 2017. S. Hamilton, Clerk of the Circuit Court Clerk Oath or Affirmation of Office Commonwealth of Virginia, City of Roanoke, to -wit: I, Amelia C. Merchant, 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 to fill the unexpired term of Barbara A. Dameron, Director of Finance, (resigned) ending June 30, 2018, according to the best of my ability. (So help me God) 01"_� C "1 a'0'r AMELIA C. MERCHANT The foregoing oath of office was taken, sworn to, and subscribed before me by Amelia C. Merchant this TI-L day of�6x.2017. Brenda S. Hamilton, Clerk of the Circuit Court �- .t1 .J�:� /�I �' 1 717 SEP-14 Pm12z47 V"11 @y t ild f S d3S Gt. M Greater Roanoke Transit Company Board of Directors Meeting Management Update September 18, 2017 Collective Bargaining Agreement Negotiations resumed on August 9 and 10, 2017. An agreement was not reached on all of the items negotiated. The parties agreed to resume negotiations on September 19 and 20, 2017. In that the current collective bargaining unit agreement expired June 30, 2017, the parties signed a month to month contract extension agreement. The terms and conditions of the current agreement will remain in effect until a new agreement is fully executed. Triennial Review As a part of the July 17, 2017 Management Update, the Board was advised of the results of the Federal Transit Administration (FTA) Triennial Review. Staff completed and submitted corrective action plans addressing six (6) of the nine (9) areas where deficiencies were found. The corrective action plans for the remining three areas are due in November and December, 2017. Comprehensive Operational Analysis (COA) The COA project scope of work for examining and analyzing GRTC current operating and service delivery systems has been reviewed and accepted by the Department of Rail and Public Transportation's (DRPT) consultants. GRTC staff along with the DRPT consultants and staff are in the process of drafting the notice to proceed and task order agreement. Fiscal 2017 Ridership Overall, ridership for FY 2017 year to date as of June 2017 is 4.1 % below FY 2016. GRTC's ridership percentage change for June year to date for FY17 compared to June year to date for FY16 for each GRTC service type is detailed below. Fixed Route: (4.3 %) Smart Way: (12.4 %) Smart Way Connector: (2.0 %) Star Line Trolley: (3.2 %) STAR: 4.5% RWctfr; C General Manager Copy. 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 America's Buses Lose Hiders, Imperiling 1 heir Puture - cetusnews rage I of v ILL W, 1IU1I1 '1" 4v,IIJI IIAII 1111- 1111111AI1 oow Free - 1600 Email Templates in English (Business, job,...) America's Buses Lose Riders, Imperiling Their Future IU.0 I.i I I.I, i F ,.: V , II,Ia I ,I � 1 I a _ ,I ,. . d-J I IiIJ.nI i I I 1NL,nc,. r 11�..,_i,, -.n N N, J I I I I I ym:I I' iil':,.•.nP ..,,I.. i._.I„ r r 1 i_i.,= 1zin lc l iron I . li ,Ili -.L ¢,5 11 .11 _u1 . I. u. , I 11 IF 1 1 11, 1 . _ 'Ibnj.,l ,J. I„ _,..,i I <nr ly"dooa'P{ i..v vlc,iJi rode. \1 N, the 1 I.1) I "AIN r -it, I i 1 Fay v.e ion„ .rlrn �. 111N .n J I N Io I i .,Id J,I LF7% MLI ,..o I lA " I i.dL Lo,a ,�� I.i -.� ,. 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Bestpitch, President and Members of the Board of Directors Dear President Bestpitch and Members of the Board: Subject: Greater Roanoke Transit Company Fiscal Year 2017 Financial Report (Unaudited) The attached report provides Fiscal Year 2016 — 2017 financial performance information for the Greater Roanoke Transit Company (GRTC). This report is for the twelve months ending June 30, 2017. GRTC experienced net income of $625,578, an increase of $754,978 from FY 2015 — 2016. The net income increases unrestricted retained earnings which total $801,517 at the end Fiscal Year 2016 - 2017. The significant factors affecting financial performance are outlined below. Revenue Total revenue increased 9.3% compared to the same period last year and is 3.8% above the established budget. Significant factors impacting revenue performance include: • Fare revenue decreased 5.1% compared to FY 2016 and performed 9.1% below the established budget. • Other revenue (advertising, building rental, parking, etc.) increased 33.5% and is 39.2% above the established budget. • Operating assistance increased 12.9 °% compared to FY 16 and is 6.6% above the established budget. Federal and state assistance increased 16.4% compared to the prior year and are 9.3% above the established budget. Greater Roanoke Transit Company William D. Bestpitch, President and Members of the Board of Directors GRTC Financials September 18, 2017 Page 2 Expenses Total expenses increased less than 1% over the same period last year and are 2.9% below the established budget. Significant factors impacting expenditure performance include: • Labor and fringe benefit expenses increased 4.7° %and 1 .5 % belowthe established budget. • Services increased 4.7% but are 2.5 °% below the established budget. • Materials and supplies expense decreased 11.8% and are 4% below the established budget. • Insurance expense for the vehicles and buildings decreased 30.3% compared to last year and is 33.2% below budget. • Miscellaneous expense, which includes the provision of para- transit service expense, increased approximately 5.7% and is 2.2% above the established budget. Respectfully Su fitted, Carl .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, 2017 FY FY FY 17 2017 2016 BUDGET o OF FY 17 June June TOTAL BUDGET OPERATING INCOME Operating Revenue $1,928,695.88 $2,032,633.64 $2,122,720.00 90.86% Non - Transportation Revenues 310,517.29 232,666.23 223,084.00 139.19% Total Income $2,239,21317 $2,265,299.87 $2,345,804.00 95.46% OPERATING EXPENSES Labor - Hourly &Salary $3,747,489.95 $3,615,697.99 $3,756,673.00 99.76% Fringe Benefits 1,728,837.43 1,613,313.76 1,804,992.00 95.78% Services 574,812.17 549,153.26 589,465.00 97.51% Materials& Supplies 1,211,059.52 1,373,247.34 1,261,734.00 95.98% Utilities 238,730.61 231 262,212.00 91.04% Insurance Costs 253,460.00 363,515.34 379,475.00 66.79% Miscellaneous Expenses 1.341,646.73 1,266,819.28 1,313.092.00 102.17% Total Expenses $9,096,036.41 $9,022,525.36 $9,367,643.00 97.10% Net Loss ($6,856,823.24) ($6,757,225.49) ($7,021,839.00) 97.65% Local Grants $2,333,800.67 $2,203,751.56 $2,312,924.00 100.90% State Grants 2,184,637.13 1,705,248.00 1,709,287.00 127.81% Federal Grants 2,963,963.00 2,718,825.00 2999628.00 98.81% Total Subsidies $7,482,400.80 $6,627,824.56 $7,021,81 106.56% Net Income (loss) $625 577.56 ($129,400.93) GREATER ROANOKE TRANSIT COMPANY SUMMARY OF STATEMENT OF NET POSITION 6/30/2017 6/30/2016 Year -to -Date Year -to -Date %of Change ASSETS CASH ACCOUNTS RECEIVABLE INVENTORY FIXED ASSETS FIXED ASSETS ACCUMULATED DEPRECIATION NET FIXED ASSETS PREPAYMENTS TOTAL ASSETS CURRENT LIABILITIES ACCOUNTS PAYABLE PAYROLL LIABILITIES OTHER LIABILITIES CAPITAL CAPITAL STOCK GRANTS DEPRECIATION EXPENSE RETAINED EARNINGS CAPITAL CONTRIBUTIONS NET INCOME (LOSS) TOTAL CAPITAL TOTAL LIABILITIES & CAPITAL $ 1,228,460.37 $ 5.00 $ 558,435.01 $ 4,271,876.60 120% $ 499,079.27 $ (1,906,722.25) $ 705,368.62 $ 8,399,814.27 -29% $ 471,186.38 $ 418,341.00 $ 543,979.68 $ (129,400.93) -13% $ 32,513,080.30 $ 11,053,913.69 $ 32,241,649.13 $ 12,413,887.18 1% $ (22,566,014.90) $ (21,685,901.68) 4% $ 9,947,065.40 $ 10,555,747.45 -6% $ 51,412.86 $ 50,356.42 2% $ 12,197,204.28 $ 12,413,887.18 -2% $ 374,777.39 $ 5.00 $ 549,982.38 $ 4,271,876.60 -32% $ 351,071.75 $ (1,906,722.25) $ 331,910.87 $ 8,399,814.27 6% $ 496,787.00 $ 418,341.00 $ 478,080.24 $ (129,400.93) 4% $ 5.00 $ 5.00 0% $ 4,055,222.10 $ 4,271,876.60 -5% $ (1,676,971.11) $ (1,906,722.25) -12% $ 6,998,686.59 $ 8,399,814.27 -17% $ 972,048.00 $ 418,341.00 132% $ 625,577.56 $ (129,400.93) -583% $ 10,974,568.14 $ 11,053,913.69 -1% $ 12,197,204.28 $ 12,413,887.18 -2% MUNICIPAL AUDITING REPORT CITY OF ROANOKE ROANOKE Greater Roanoke Transit Company Fuel Management July 28, 2017 Report Number: 17007 Audit Plan Number: 17 -203 Municipal Auditing Department Chartered 1974 www. roanokeva. oov/auditina Phone 540.853.5235 July 28, . 2017 TABLE OF CONTENTS Audit Objectives & Scope ............... Background ........ ... ........ ................ Objective 1 — Underground Storage Tanks Report # 17007 .................... ............................... 2 ......................... _.............. 4 Objective 2 — Fuel Purchases ..... ........ .......... ......... ............ .......... Summary of Management Action Plans ......... ............................... Acknowledgements ...... ... ........ ............. .... .._ ........ ....... ....... ................... 8 July 28, 2017 AUDIT OBJECTIVES, SCOPE & METHODOLOGY Audit Obiectives: Report # 17007 1. To determine if the Greater Roanoke Transit Company (GRTC) maintains and monitors underground storage tanks in compliance with Federal and State regulations. Yes — GRTC uses fiberglass, double - walled storage tanks equipped with an automated tank gauging system that reports total gallons in inventory and continuously monitors for water and leaks. The maintenance facilities, including the underground storage tanks, are regularly inspected. Opportunities for strengthening controls to ensure optimal functionality of both the tank gauging system and fueling system were noted with appropriate action plans developed by management. To determine if fuel deliveries were invoiced and paid in accordance with properly procured and executed contracts. Yes with Exceptions — GRTC competitively bids fuel contracts to obtain guaranteed pricing for each fiscal year. Three vendors have been awarded contracts over the past four years, indicating a competitive market. Contracts are awarded to the vendor who bids the lowest differential on prices quoted on the futures market. GRTC has a 30 day window to lock in the quoted price on the futures market, after the award has been made. Under one (1) of four (4) contracts reviewed, we found that the bid differential had been misread causing the contract and subsequent invoices to be based on an overstated price per gallon. Total overpayments of $24,904 resulted from this error. In addition, fees that were supposed to be included in the differential were invoiced separately under two contracts, resulting in overpayments of $7,627. Audit Scope and Methodology We evaluated the design and operation of the system of controls in place as of December 31, 2016 related to diesel fuel activity. We reviewed transactions which occurred between July 1, 2015 and March 31, 2017. The audit encompassed an analysis of fuel inventory records, including daily tank readings, fuel disbursements, daily fuel reconciliations and fuel contracts and payments. End of Audit Objectives, Scope & Methodology Page 1 July 28, 2017 Report # 17007 BACKGROUND The Greater Roanoke Transit Company (GRTC) is a private, nonprofit, public service organization wholly owned by the City of Roanoke. GRTC contracts with First Transit, Inc. to operate and maintain the transit system, which is more widely known as 'Valley Metro.' Valley Metro operates a fleet consisting of the following: • 37 Gillig transit coaches • 4 MCI Coaches • 5 body -on- chassis buses • Two (2) 19— passenger body -on- chassis vehicles All of GRTC 's coaches and buses operate on ultra -low sulfur diesel. Annually, GRTC invites fuel suppliers to bid a guaranteed price for supplying the diesel needed to operate the fleet. The most recent contract spans 12 months and provides for up to 450,000 gallons to be purchased. GRTC stores its diesel in two (2) underground storage tanks, each with a capacity to store 12,000 gallons. The tanks were installed in 1989 at the Roy Z. Meador Operations, Maintenance and Administrative Facility. GRTC 's Finance department reported the following fuel costs: Fiscal Year Vendor Payments Net Gallons cost per Gallon Smart Way Connector Total Gallons of Fuel Consumed 321,548 2014 $1,345,030 441,300 3.048 2015 $1,246,410 421,622 2.956 _ 2016 $851,879 426,394 1.998 2017 * $246.774 152,246 1.620 Totals $3,690,093 1,441,562 24 As of CCWber 31. 2016 Annual Vehicle Information FY 2016 Description Fixed Route Smart Way Star Line Smart Way Connector Total Gallons of Fuel Consumed 321,548 68,030 17,271 19,993 426,842 Quarts of Oil Consumed 9,968 972 458 246 11,644 Vehicle Miles 1.222,198 373,526 60,776 105.588 1,762,088 Road Calls 240 27 24 3 294 Major Failures 1 1 0 0 2 Average MPG 3.80 5.49 3.52 5.28 1 4.13 Page 2 July 28, 2017 Laws and Regulations: Report # 17007 The Environmental Protection Agency (EPA) requires careful management of underground storage tanks to ensure stored fluids do not leak. Tanks with anti - corrosive properties have been required since 1998. The EPA also requires meticulous monitoring records that include reconciling the number of gallons delivered into the tanks with the number of gallons pumped out of the tanks. Tank monitoring systems may be used in place of manual processes involving the use of stick measurements, conversion charts, and daily logging of inventory, deliveries and dispensing. The Virginia Administrative Code requires automatic tank gauging systems in all underground storage tanks holding motor fuels (9 VAC - 580 -160). The tank gauging system must be calibrated according to manufacturer's recommendations. Operators must be trained and knowledgeable about applicable regulations, the operation and maintenance of their tank gauging system, and proper response actions in the event of a release. End of Background Page 3 July 28, 2017 Objective 1: Underground Storage Tanks Audit Obiective Report # 17007 Does the Greater Roanoke Transit Company (GRTC) maintain and monitor underground storage tanks in compliance with Federal and State regulations? Yes Overview The EPA and Virginia Department of Environmental Quality specify the requirements for maintaining fuel in underground storage tanks. The regulations are extensive and require non- corrosive tanks, monthly monitoring for leaks, and meticulous records of fuel received and dispensed. Automatic tank gauging systems satisfy many of the manual procedures once required, such as daily stick measurements and monthly tests for water using water - sensitive paste. Tank gauging systems must be capable of accurately measuring the level of fuel to within 1/8 inch. GRTC maintains two 12,000 gallon underground storage tanks for storing its diesel fuel inventory. Both tanks were installed in 1989 and are double - walled.. fiberglass tanks. A brine solution exists between the fiberglass walls which enables continuous monitoring for leaks that might develop in either the internal or external wall. The piping between the tank and pumping system is also double - walled fiberglass. Other required features around the tanks, such as spill containment systems and tank locks are in place. A GRTC employee completes a monthly inspection of the facilities, including the storage tanks and certain system controls. We verified that the monthly inspection checklists were completed. Automatic Tank Gauging System GRTC 'a automatic tank gauging system, Veeder Root, provides information on fuel levels in the tanks.. the temperature of the fuel, and the presence of water. It reports the volume increase in each tank after fuel deliveries. The system also provides warnings when a tank is nearing overfill. While tank capacity is — 12,000 gallons, they are generally not filled beyond the 9,000 to 10,000 gallon level. Based on our sample testing of gallons dispensed on 14 different days across 11 months, GRTC 's fleet consumes approximately 1,400 gallons of diesel fuel each operating day. At that pace, a combined tank inventory of 20.000 gallons provides fuel for — 14 operating days. Page 4 July 28, 2017 Report # 17007 Fuel Disoensina Svstem Buses and coaches go through the service line nightly to be cleaned and refueled. The DPW fuel management system is a key -based system in which a physical key is assigned to each bus or coach. The keys are kept on individual hooks by the fueling station. The key assigned to the bus or coach being fueled must be inserted into the system and an odometer reading entered before fueling can begin. The system includes built in controls to prevent spills and detect leaks based on drops in line pressure. The pump will shut down if line pressure falls below 20 psi. Fuel In / Fuel Out: In combination, the automatic tank gauging system and the fueling system serve as GRTC 's primary controls to ensure compliance with EPA and DEQ regulations. On a test basis, we compared the gallons pumped as reported by the fueling system, to the change in fuel inventory reported by the automatic tank gauging system. Our sample looked at 14 days over 11 months: - 6 of 14 days showed variances of greater than +/- 3 %. - Total overall variance was — 306 gallons (1.55 %) A fundamental concept included in federal and state regulations is that the amount of fuel delivered into a tank should equal the amount of fuel pumped out of the tank over the course of time. On a monthly basis, the number of gallons pumped should not vary from the number of gallons delivered plus or minus the change in fuel inventory. The EPA specifies that the variance should not exceed 1°% of throughput (fuel pumped) + 130 gallons. If the variance exceeds this amount two consecutive months, a tank owner in Virginia would be expected to promptly report a potential leak to the Virginia Department of Environmental Quality. To place the overall variance of our sample into context, we applied the EPA's monthly throughput computation. On this basis. GRTC was allowed to have a variance of up to —328 gallons. GRTC's actual variance was only 306 gallons and was within EPA's guidelines. GRTC has not had a policy to compare the gallons of fuel dispensed with the change in fuel inventory reported by the tank gauging system each night. GRTC should consider implementing this policy as one means of validating the accuracy of data in both systems and identifying any potential system problems. Data Quality / System Interfaces: Based on our observations of the system and discussions with GRTC employees, the fueling management system has data quality issues and does not interface with the fleet management system. It appears a combination of operator error and software issues need to be addressed in order to maximize the utility of the system. Currently, employees manually log the gallons Page 5 July 28, 2017 Report # 17007 dispensed and odometer reading for each bus on paper. The logged data is manually keyed into GRTC s fleet management system, which tracks maintenance and fuel costs for each vehicle, as well as performance information such as average miles per gallon. There are opportunities to improve data accuracy and reduce labor associated with logging and rekeying data. Audit tests also indicated that the automatic tank gauging system had a data quality issue. We tested a sample of fuel deliveries to determine if the gallons billed by the vendor were consistent with the gallons reported by the automatic tank gauging system as being received for the same delivery. We initially looked at 9 deliveries made between August 2015 and November 2016. We noted significant variances, as follows: 9 of 9 deliveries showed more gallons billed than delivered 6 of 9 exceeded 1 % above the gallons reported by the tank system Average variance was 138 gallons (more billed than delivered) Overall variance for the nine deliveries was 1,243 gallons (1.89 %) Based on discussions with management, we learned that there was no record of the last time the tank gauging system (and the fueling system) had been calibrated. Management immediately scheduled a calibration of the tank gauging system for 12/28/16. We later expanded our testing to include deliveries from January 2017 through March 2017, noting the following improvements in results. - 2 of 7 deliveries showed more gallons billed than delivered, both — 0.12°/ - 5 of 7 deliveries showed more gallons delivered than billed. - Average variance was 56 gallons (more delivered than billed) - Overall variance for the seven deliveries was 0.74% Vendor invoices were paid as invoiced, without validating the gallons billed against independent stick readings or the tank gauging system data Vendors bill deliveries based on net gallons, which adjusts for contraction or expansion of fuel caused by variances in temperature. Emergency Plans: We confirmed that GRTC has documented emergency plans to address fuel spills, addressing EPA and DEQ requirements. Spill prevention procedures were last updated February 17, 2011. The procedures address the following: c Inventory Reconciliation (leak detection) o Spill /overfill prevention methods o Spill control countermeasures Page 6 July 28. 2017 Report # 17007 Site specifications o Tank tightness testing program Spill response plan • Employee training plan • Spill containment emergency numbers ., Monthly inspections of tanks End of Objective 1 Page 7 July 28, 2017 Objective 2: Fuel Purchases Audit Obiective Report # 17007 Were fuel deliveries invoiced and paid in accordance with properly procured and executed contracts? Yes with exceptions Overview GRTC uses sealed bidding to acquire 12 month contracts from suppliers to provide diesel at a guaranteed fixed price. The invitation to bid actually asks vendors to bid the differential that will be added to the futures price listed on the New York Mercantile Exchange for a gallon of New York Harbor Heating Oil. GRTC accepts the lowest differential bid and has 30 days from the bid opening date to lock in the final per gallon price based on the NYMEX daily futures price. The market for suppliers has been competitive as shown by the contracts awarded: Vendor Contract Period Price PAPCOINC Petroleum Traders Corp 7/1/13 to 6/30/14 7/1/14 to 6/30/15 $3.0475 $2.9470 James River Solutions, LLC 9/1/15 to 8/31/16 $1.9720 James River Solutions, LLC 9/1/16 to 6/30/17 $1.2470 Upon reviewing the contract files, we noted that James River Solutions had actually bid a negative differential in its last contract. This meant that the futures price should have been reduced by the differential amount rather than having the differential added to it. When GRTC prepared the contract, Purchasing inserted the guaranteed price per gallon based on adding the differential to the futures price. The resulting guaranteed price per gallon was still lower than competitors had bid and the error was not caught. Based on our analysis, overpayments totaled $24,904. GRTC has alerted James River, who has agreed to credit future invoices to return the overpayment. We also noted that federal and slate fees were added to invoices during two contract terms with two different vendors. Bid requests and contracts specified that these fees were supposed to be included in the differential and not to be billed separately. We estimated overcharges totaled $ 7,627. End of Objective 2 Page 8 July 28, 2017 MANAGEMENT ACTION PLANS Report # 17007 System calibration The Veeder -Root tank monitoring system and OPW fuel meter system will both be calibrated by a contractor on a semi - annual basis. Assigned To Target Date John Thompson. Director of Maintenance. 12/15/17 Diesel Fuel Billing Error Future contracts will include two areas in which the Purchasing Supervisor will verify if the differential is an addition or deduction to the futures price to help ensure the contract is consistent with the bid. The Purchasing Supervisor and the Director of Finance are reviewing invoices and confirming the pricing is consistent with the contract prior to approving the invoice for payment. Assigned To Target Date Tiffany 011ie, Purchasing Supervisor Done Reconciling Fuel Inventory A procedure has been established to reconcile the change in fuel inventory reported by the Veeder -Root tank monitoring system with the gallons of fuel dispensed per the DPW fuel metering system. Assigned To Target Date Margaret Dogan, Inventory Control Clerk J, Done Stick Readings of Fuel Deliveries Delivery drivers will be required to use the fuel sticks provided by Valley Metro employees to help ensure accurate measurements. Assigned To Tar et Date Margaret Dogan, Inventory Control Clerk Done Page 9 July 28, 2017 Report # 17007 Monitoring for Water in Tanks A procedure has been established to manually stick tanks using water - sensing paste to verify no water has accumulated in the bottom of the tanks. This testing will be completed monthly; records will be retained for a period of 7 years. Assigned To Tar at Date Margaret Cogan, Inventory Control Clerk 9/1/17 Fuel Dispensing System ormation technology employee is evaluating the DPW system's functionality and ration. If the system's performance cannot be improved through reconfiguration, the e will be replaced by August 31, 2018. i LAssi ed To Tar et Date hom pson. Director of Maintenance 8/31/18 Page 10 July 28, 2017 Report # 17007 ACKNOWLEDGEMENTS We would like to thank the management and employees of Valley Metro for their assistance and cooperation throughout the audit. A special thanks to John Thompson. Director of Maintenance, for his time and consideration as the point person with whom we worked. We would also like to thank Tiffany 011ie, Purchasing Supervisor: Sarah Godsey, Accounting Supervisor: and Margaret Dogan, Inventory Control Clerk for their time and input. Wayife Parker, CFE Senior Auditor 5� � Na--- Drew Harmon, CPA, CIA Municipal Auditor Page 11 GREATER ROANOKE TRANSIT COMPANY BOARD OF DIRECTORS August 23, 2017 The Honorable Sherman P. Lea, Sr., and Members of the Roanoke City Council Roanoke, Virginia Re: Special Meeting of Stockholder Dear Mayor Lea and Members of City Council: Pursuant to Section 2, Article 11, By -Laws of Greater Roanoke Transit Company, this is to advise you that I am calling a Special Meeting of the Stockholder of the Greater Roanoke Transit Company to be held on Monday, September 18, 2017, at 4:00 p.m., or as soon thereafter as the matter may be heard, in the Council Chamber, Room 450, 4th Floor, Noel C. Taylor Municipal Building, 215 Church Avenue, S. W., Roanoke, Virginia. The purpose of the meeting will be to convene in a Closed Meeting to discuss and /or consider acquisition of real property fora public purpose and /or disposition of real property owned by Greater Roanoke Transit Company, generally known as Campbell Court, located at Salem Avenue and Campbell Avenue, S. W, in Roanoke, Virginia, and bearing Official Tax Map Nos. 1011105, 1011106, 1011107, 1011108, 1011109, 1011110, 1011116, 1011117, 1011118, 1011119, 1011120, 1011122, and 1011129, pursuant to Section 2.2- 3711(A)(3), Code of Virginia (1950), as amended. Sincerely, Stephanie M. Moon Reynolds Secretary PC: Sherman M. Stovall, Assistant Vice President of Operations, GRTC Troy A. Harmon, Municipal Auditor Daniel J. Callaghan, General Counsel, GRTC Barbara A. Dameron, Treasurer, GRTC Laura Carini, Assistant General Counsel, GRTC Carl Palmer, General Manager, Valley Metro, P. O. Box 13247, Roanoke, Virginia 24032 Kevin Price, Assistant General Manager, Valley Metro, P. O. Box 13247, Roanoke, Virginia 24032 K kGRTC 17 -18 -17 Call Letter for Stockholders' Meeling)8.22. 17),doc GREATER ROANOKE TRANSIT COMPANY STOCKHOLDER'S SPECIAL MEETING MONDAY, SEPTEMBER 18, 2017 4:00 P.M. CITY COUNCIL CHAMBER AGENDA Call to Order - Roll Call. Vice -Mayor Anita J. Price was absent; and Mayor Sherman P. Lea, Sr., arrived late. 2. Statement of Purpose. Council Member David B. Trinkle The purpose of the Special Meeting will be to convene in a Closed Meeting to discuss and /or consider acquisition of real property for a public purpose and /or disposition of real property owned by Greater Roanoke Transit Company, generally known as Campbell Court, located at Salem Avenue, S. W., and Campbell Avenue, S. W., in Roanoke, Virginia, and bearing Official Tax Map Nos. 1011105, 1011106, 1011107, 1011108, 1011109, 1011110, 1011116, 1011117, 1011118, 1011119, 1011120, 1011122, and 1011129, pursuant to Section 2.2- 3711(A)(3), Code of Virginia (1950), as amended. 3. Recessed — 4:06 p.m. Mayor Lea arrived during the Closed Meeting (4:22 p.m.) Council Member Trinkle left during the Closed Meeting (5:14 p.m.) Council Member Dykstra left during the Closed Meeting (5:31 p.m.) 4. Reconvened at 5:56 p.m. 5. Certification of Closed Meeting. (4 -0, Vice -Mayor Price and Council Members Dykstra and Trinkle were absent.) 6. Adjourned at 5:58 p.m. 1,0.'LLMDATA'cfmc1.1 GRTC - Spminl Meetingel9 -18 -I ] S�uckholdm5 SOa�al Meeting Ac,ion Agendawc GREATER ROANOKE TRANSIT COMPANY BOARD OF DIRECTORS November 16, 2017 William D. Bestpitch, President, and Members of the Greater Roanoke Transit Company Board of Directors Dear President Bestpitch and Members of the Board: The regular meeting of the Greater Roanoke Transit Company Board of Directors will be held on Monday, November 20, 2017, at 12:30 p.m., in the EOC Conference Room, Room 451, fourth floor, Noel C. Taylor Municipal Building, 215 Church Avenue, S. W., Roanoke, Virginia. The purpose for the change in time is for the Board to convene in a Closed Meeting (See communication dated October 23, 2017). Sincerely, Stephanie M. Moon Reynolds Secretary PC: Robert S. Cowell, Jr., Vice President of Operations, GRTC Sherman M. Stovall, Assistant Vice President of Operations, GRTC Daniel J. Callaghan, General Counsel, GRTC Amelia C. Merchant, Treasurer, GRTC Troy A. Harmon, Municipal Auditor Laura M. Carini, Assistant General Counsel, GRTC Carl L. Palmer, General Manager, Valley Metro, P. O. Box 13247, Roanoke, Virginia 24032 Kevin Price, Assistant General Manager, Valley Metro, P. O. Box 13247, Roanoke, Virginia 24032 Stephanie Giles, Director of Finance, Valley Metro, P. O. Box 13247, Roanoke, Virginia 24032 L\CLERK \DATA \smmoon \GRTC,1TJune 19, 2017 Me tng Notice.dm GREATER ROANOKE TRANSIT COMPANY BOARD OF DIRECTORS November 20, 2017 12:30 P.M. EOC CONFERENCE ROOM ROOM 159 e[3T.MIT, Call to Order -- Roll Call. Vice - President Price arrived late; and Director Payne was absent. 2. Approval of Minutes: Regular meeting of GRTC held on Monday, September 18, 2017; and Special meeting of GRTC held on Thursday, October 26, 2017. Without objection, minutes were dispensed with and approved as written. At this point, Vice - President Price entered the meeting (12:31 p.m.) 3. A communication from the Secretary dated October 23, 2017 calling for the Board of Directors to convene in a Closed Meeting to discuss and /or consider the acquisition of real property for a public purpose and /or the disposition of real property owned by Greater Roanoke Transit Company, generally known as Campbell Court, located at Salem Avenue, S. W., and Campbell Avenue, S. W., in Roanoke, Virginia, and bearing Official Tax Map Nos. 1011105 - 1011110, inclusive, 1011116 - 1011120, inclusive, 1011122, and 1011129, pursuant to Section 2.2 -3711 (A)(3), Code of Virginia (1950), as amended. 4. Recessed — 12:35 p.m. 5. Reconvened —1:04 p.m.. CERTIFICATION OF CLOSED MEETING (6 -0) K: \GRTC.1Mow nbu 20, 2017 Action Agenda.doc 6. Reports of Officers: a. General Manager: 1. Management Update: a. Collective Bargaining Agreement b. Triennial Review c. Comprehensive Operational Analysis d. Fiscal 2017 Ridership Update received and filed. 2. Financial Report for the month of September 2017. Financial Report received and filed. 3. Authorization to Purchase Buses and Trolleys. Adopted Resolution. (6 -0) 4. Approve Proposed Fare Adjustment and Amend STAR Monthly Fare Pass Policy. Adopted Resolution, as amended. (6 -0) Other Business: a. Report of GRTC Audited Financials from Cherry Bekaert & Holland, LLP, Independent Auditor. Presentation received and filed. 8. Next Meeting: Tuesday, January 16, 2018 at 1:00 p.m. in the EOC Conference Room. 9. Adjourned — 1:45 p.m. K: \GRTC.1➢N.be 20,2017 Action A,e da doc GREATER ROANOKE TRANSIT COMPANY BOARD OF DIRECTORS October 23, 2017 William D. Bestpitch, President Anita James Price, Vice President Karen Michalski - Karney, Board Member Melinda J. Payne, Board Member Curtis E. Mills. Board Member Mark Jamison, Board Member Michael Shockley, Board Member (VIA EMAIL AND REGULAR MAIL) Re: Meeting of Board of Directors - November 20, 2017 at 12:30 pm Dear President Bestpitch and Members of the Board of Directors: Pursuant to Article III, Section 4, By -Laws of Greater Roanoke Transit Company, I am calling for a meeting of the Board of Directors of Greater Roanoke Transit Company for Monday, November 20, 2017, beginning at 12:30 p.m., in the Emergency Operations Center Conference Room, Room 159, first floor, Noel C. Taylor Municipal Building, 215 Church Avenue, S.W., Roanoke, Virginia. The purpose of this meeting is for the Board of Directors to convene in a Closed Meeting to discuss and /or consider the acquisition of real property for a public purpose and /or the disposition of real property owned by Greater Roanoke Transit Company, generally known as Campbell Court, located at Salem Avenue, S. W. and Campbell Avenue, S. W., in Roanoke, Virginia, and bearing Official Tax Map Nos. 1011105, 1011106, 1011107, 1011108,1011109, 1011110,1011116,1011117,1011118,1011119,1011120,1011122, and 1011129, pursuant to Section 2.2- 3711(A)(3), Code of Virginia (1950), as amended. This meeting will precede the regularly scheduled Board Meeting set for 1:00 p.m. on November 20, 2017. Please let me know if you have any questions Since y, rr - Stephanie M. Moon Reyn lds Secretary Board meeting (11,20 2017 at 12:30pm) William D. Bestpitch, President, and Members of the Greater Roanoke Transit Company Board of Directors October 23, 2017 Page 2 cc: Robert S. Cowell, Jr., Vice President of Operations, GRTC Sherman M. Stovall, Assistant Vice President of Operations, GRTC Daniel J. Callaghan, General Counsel, GRTC Amelia C. Merchant, Treasurer, GRTC Laura Carini, Assistant General Counsel, GRTC Carl Palmer, General Manager, Valley Metro, P. O. Box 13247, Roanoke, Virginia 24032 Kevin Price, Assistant General Manager, Valley Metro, P. O. Box 13247, Roanoke, Virginia 24032 Troy A. Harmon, Municipal Auditor Board.eeting (11.20.2017 at 12'.30pm) v4��er 1� M Greater Roanoke Transit Company Board of Directors Meeting Management Update November 20, 2017 Collective Bargaining Agreement The Board of Directors was previously advised that the membership of the Amalgamated Transit Union (ATU) Local 1493 did not approve the tentative agreement that was reached in September. On November 1, 2017, management resumed negotiations with the Amalgamated Transit Union Local 1493. A new tentative agreement was reached on all items except two (2), Negotiations on the remaining two (2) items are in progress. In that the current collective bargaining unit agreement expired June 30, 2017, the parties signed a month to month contract extension agreement. The terms and conditions of the current agreement will remain in effect until a new agreement is fully executed. Triennial Review The corrective action plans due the Federal Transit Administraton (FTA) in November were successfully completed and submitted by the required due dates. The plans due in December, 2017 are in progress and will be completed and submitted by the due date. After the December submission, FTA will complete its review of all plans submitted and advise as to whether or not they have been fully accepted and the review is closed. Comprehensive Operational Analysis (COA) The notice to proceed with the COA project, contingent upon fully executing a task order contract with the Department of Rail and Public Transportation's (DRPT) consultants, was issued on September 28, 2017. The task order contract was executed on October 2011 The kick off meeting was held on October 23rd. A follow up project planning session was held on October 251h. Fiscal 2017 Ridership Overall, ridership for FY 2017 year to date as of September 2017 is 4.1 % below FY 2016. GRTC's ridership percentage change for September year to date for FY17 compared to September year to date for FY16 for each GRTC service type is detailed below: Fixed Route: (3.9 %) Smart Way: (5.1 %) Smart Way Connector: (14.9 %) Star Line Trolley: (15.6 %) STAR: 12.9% Greater Roanoke Transit Company PO Box 13247 • Roanoke, Virginia 24032 • Phone: 540.982.0305 • Fax:540.982.2703 • www.valleymetro.com R ed, OPTO ed, Carl General Manager Copy: Vice President of Operations Assistant Vice President of Operations Treasurer Secretary GRTC General Counsel Municipal Auditor M Greater Roanoke Transit Company Board of Directors Meeting Roanoke, Virginia November 20, 2017 William D. Bestpitch, President and Members of the Board of Directors Dear President Bestpitch 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) 2018. For the first quarter of FY 2018, Greater Roanoke Transit Company (GRTC) experienced net income of $223,797 a decrease of $25,521 compared to the same period in FY 2017. The significant factors affecting financial performance are outlined below. Revenue Total revenue increased 1.3% over the same period last year and is 1.7% above the established budget. Significant factors impacting revenue include: • Fare Revenues decreased 1.3% compared to FY 2017, but are within the established budget. • Other Revenues (advertising, building rental, parking, miscellaneous) increased 33.3 °% compared to FY 2017 and are 8.7% above the established budget. • State and Federal operating assistance increased less than 1% but are performing above budget expectations. Expenses Total expenses increased 2.5% compared to FY 2017, and are within 1% of the established budget. Significant factors impacting expenses include: .� Greater Roanoke Transit Company .w....mm William D. Bestpitch, President and Members of the Board of Directors GRTC Financials November 20, 2017 Page 2 • Labor and Fringe Benefits increased approximately 3.4 %, but are within 1% of the established budget. • Materials and Supplies decreased 18.9% and are 5.4 °% below the established budget. • Utilities decreased 7.6% and are 2.9 °% below the established budget. • Insurance decreased 2.9 °% and is 1.5 °% below budget. • Miscellaneous Expense increased 24.5% and exceeds budget approximately 3.3 ° %. Purchased Transportation for STAR service has increased 26 °% compared to the prior year due to the provider's loss of matching Job and Reverse Commute (JARC) funding. Respectfully Subm" ed, 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, 2017 FY FY FY 17 2018 2017 BUDGET % FY 17 September September TOTAL BUDGET OPERATING INCOME Operating Revenue $482,131.80 $488,509.73 $2,122,720.00 22.71% Non - Transportation Revenues 87710.23 61 223,084.00 39.32% Total Income $569,842.03 $554,302.65 $2,345,804.00 24.29% OPERATING EXPENSES Labor - Hourly B Salary $1,038,170.02 $1,007,216.79 $3,756,673.00 27.64% Fringe Benefits 452,716,66 434,364.93 1,804,992.00 25.08% Services 129,949.24 139,189.39 589,465.00 22.05% Materials B Supplies 263,715.19 325,093.00 1,261,734.00 20.90% Utilities 57,50330 62,207.74 262,212.00 21.93% Insurance Costs 63,42914 65,306.12 379,475.00 1671% Miscellaneous Expenses 442,025.61 355,021.06 1313092.00 33,66% Total Expenses $2,447,509.16 $2,388,399.03 $9,367,64100 26.13% Net Loss ($1,877,667.13) ($1,834,096.38) ($7,021,839.00) 26.74% Local Grants $590,291.78 $581,601.07 $2,312,924.00 25.52% State Grants 489,984.00 542,919.00 1,709,287,00 28.67% Federal Grants 1,021,188.00 958,894.00 2,999,628.00 34.04% Total Subsidies $2,101,463.78 $2,083,414.07 $7,021,839.00 29.93% Net Income (loss) $223,796.65 $249,317.69 GREATER ROANOKE TRANSIT COMPANY SUMMARY OF STATEMENT OF NET POSITION 9/30/2017 9/30/2016 Year -to -Date Year -to -Date % of Change ASSETS CASH $ 1,043,327.29 $ 695,321.82 50% ACCOUNTS RECEIVABLE $ 1,385,965.32 $ 1,115,632.32 24% INVENTORY $ 454,317.62 $ 531,177.28 -14% FIXED ASSETS FIXED ASSETS $ 32,517,458.17 $ 32,492,163.84 0% ACCUMULATED DEPRECIATION $ (22,986,179.76) $ (22,107,975.58) 4% NET FIXED ASSETS $ 9,531,278.41 $ 10,384,188.26 -8% PREPAYMENTS $ 80,737.75 $ 111,016.44 -27% TOTAL ASSETS $ 12,495,626.39 $ 12,837,336.12 -3% CURRENT LIABILITIES ACCOUNTS PAYABLE $ 310,748.51 $ 353,994.34 -12% PAYROLL LIABILITIES $ 430,712.80 $ 401,571.31 7% OTHER LIABILITIES $ 972,228.15 $ 999,894.99 -3% CAPITAL CAPITAL STOCK $ 5.00 $ 5.00 0% GRANTS $ 3,838,567.60 $ 4,055,222.10 -59/. DEPRECIATION EXPENSE $ (420,164.86) $ (422,073.90) 0% RETAINED EARNINGS $ 7,135,995.54 $ 6,998,686.59 2% CAPITAL CONTRIBUTIONS $ 3,737.00 $ 200,718.00 -98% NET INCOME (LOSS) $ 223,796.65 $ 249,317.69 -10% TOTAL CAPITAL $ 10,781,936.93 $ 11,081,875.48 -3% TOTAL LIABILITIES & CAPITAL $ 12,495,626.39 $ 12,837,336.12 -3% GREATER ROANOKE TRANSIT COMPANY BOARD OF DIRECTORS November 28, 2017 Carl L. Palmer, General Manager Valley Metro P. O. Box 13247 Roanoke, Virginia 24032 Dear Mr. Palmer: I am enclosing copy of a Resolution authorizing Greater Roanoke Transit Company's President, Vice - President of Operations, Assistant Vice - President of Operations, or General Manager or any combination of two of the four aforementioned individuals to execute a purchase contract, in a form approved by General Counsel, needed to purchase nine replacement buses and four replacement trolleys, in compliance with Federal Transit Administration Circular 4220.1f, in an amount not to exceed the available grant funds and in accordance with the Federal Transit Administration and Virginia Public Procurement Act regulations: and authorizing the Vice President of Operations and General Manager to take such further actions and execute such further documents, as may be necessary to implement, administer, and enforce such contract. The abovementioned resolution was adopted by the Board of Directors at its regular meeting held on Monday, November 20, 2017. Sincerely, Stephanie M. Moon Reyn Secretary PC: Sherman M. Stovall, Assistant Vice - President of Operations Amelia C. Merchant, Treasurer Daniel J. Callaghan, General Counsel Laura Carini, Assistant General Counsel Troy A. Harmon, Municipal Auditor Kevin Price, Assistant General Manager, Valley Metro Stephanie Giles, Director of Finance, Valley Metro u BOARD OF DIRECTORS OF THE GREATER ROANOKE TRANSIT COMPANY A RESOLUTION AUTHORIZING GREATER ROANOKE TRANSIT COMPANY'S PRESIDENT, VICE - PRESIDENT OF OPERATIONS, ASSISTANT VICE- PRESIDENT OF OPERATIONS, OR GENERAL MANAGER OR ANY COMBINATION OF TWO OF 'HIE FOUR AFOREMENTIONED INDIVIDUALS TO EXECUTE A PURCHASE CONTRACT, IN A FORM APPROVED BY GENERAL COUNSEL, NEEDED TO PURCHASE NINE (9) REPLACEMENT BUSES AND FOUR (4) REPLACEMENT TROLLEYS, IN COMPLIANCE WITH FEDERAL TRANSIT ADMINISTRATION (PTA) CIRCULAR 4220.1F, IN AN AMOUNT NOT TO EXCEED THE AVAILABLE GRANT FUNDS AND IN ACCORDANCE WITH FTA AND VIRGINIA PUBLIC PROCUREMENT ACT REGULATIONS; AND AUTHORIZING THE VICE PRESIDENT OF OPERATIONS AND GENERAL MANAGER TO TAKE SUCH FURTHER ACTIONS AND EXECUTE SUCH FURTHER DOCUMENTS, AS MAY BE NECESSARY TO IMPLEMENT, ADMINISTER, AND ENFORCE SUCH CONTRACT. WHEREAS, Greater Roanoke Transit Company (GRTC) has nine (9) Valley Metro urban coaches and four (4) Star Line trolleys that has reached the end of their useful lives, as defined by Chapter IV, Section 4f(2)(a)1 &3 of the Federal Transit Administration's (FTA) Circular 5010.1E, by exceeding 500,000 miles and twelve (12) years of revenue service for the urban coaches and 200 miles and seven (7) years of revenue service for the trolleys; WHEREAS, GRTC desires to replace the nine (9) Valley Metro urban coaches with nine (9) fixed route Valley Metro service replacement buses with a useful life of twelve (12) years and 500,000 miles, and GRTC desires to replace the four (4) Star Tine trolleys with four (4) fixed route Star Line replacement trolleys with a useful life of seven (7) years and 200,000 miles; WHEREAS, the estimated costs of the replacement buses and replacement trolleys is $4,000,000 and $1,200,000, respectively, and the sources of funds for these acquisitions include a grant from the Virginia Department of Rail and Public 'Transportation (DRPT) issued from bond proceeds received by DRPT, and a Regional Surface Transportation Program grant approved by the Roanoke Valley - Alleghany Regional Commission Transportation Planning Organization Policy Board and the Commonwealth Transportation Board; and THEREFORE, BE IT RESOLVED by the Board of Directors of the Greater Roanoke 'Transit Company as follows: 1. 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 are each authorized, for and on behalf of GRTC to take such actions and execute a purchase contract, in a form approved by general counsel, to purchase nine (9) fixed route Valley Metro service replacement buses and four (4) fixed route Star Line replacement trolleys referred to in the General Managers report dated November 20, 2017, to this Board. GRTC has the necessary funds in the amount of $5,200,000 to procure the commuter coach and to make the required local match of $211,000. The sources of funds include a grant from DRPT issued from bond proceeds received by DRPT, and a grant from a Regional Surface Transportation Program grant approved by the Roanoke Valley- Alleghany Regional Commission 'Transportation Planning Organization Policy Board and the Commonwealth Transportation Board. 2. the Vice President of Operations and General Manager are further authorized to take such further actions and execute such further documents, as may be necessary to implement, administer, and enforce such purchase contract, with any such documents to be in a form approved by general counsel. ATTEST: Dat_V � 2A 1'1 'tephanie M. Moon Rey 1�See y 2 Vsa��ey M MEW Greater Roanoke Transit Company Board of Directors Meeting Action Item November 20, 2017 The Honorable William D. Bestpitch, President, and Members of the Board of Directors of Greater Roanoke Transit Company Roanoke, Virginia Dear President Bestpitch and Members of the Board: Subject: Authorization to Purchase Nine (9) Replacement Buses; four (4) Replacement Trolleys Background The Greater Roanoke Transit Company (GRTC) staff will be replacing nine (9) Valley Metro urban coaches and four (4) Star Line trolleys that have reached the end of their respective useful lives, as defined by Chapter IV, Section 4f (2) (a) 3 of the Federal Transit Administration's (FTA) Circular 5010.11E, by exceeding 500,000 miles and 12 years of revenue service for the urban coaches; 200,000 miles and seven (7) years of revenue service for the trolleys. The estimated cost for the coaches and trolleys is $ 4,000,000 and $1,200,000, respectively. The funds for both are in an approved grant, requiring a local match not to exceed 2.8% or $211,000 of total project cost. Recommendation GRTC Board of Directors authorize the purchase of nine (9) fixed route Valley Metro service replacement buses and four (4) fixed route Star Line replacement trolleys in accordance with Sections 2a and 2e of GRTC November 15, 2010 Board Resolution and FTA / Virginia Public Procurement Act 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 and trolleys. Greater Roanoke Transit Company PO Box 13247 • Roanoke, Virginia 24032 • Phone: 540.982.0305 • Fax:540.982.2703 • www.valleymetro.com Rz ully y Carl L. er General Manager Cc: Vice President of Operations Assistant Vice President of Operations Treasurer Secretary GRTC General Counsel Municipal Auditor GREATER ROANOKE TRANSIT COMPANY BOARD OF DIRECTORS November 28, 2017 Carl L. Palmer, General Manager Valley Metro P. O. Box 13247 Roanoke, Virginia 24032 Dear Mr. Palmer: I am enclosing copy of a Resolution approving and adopting a Revised Passenger Fare Schedule for the Greater Roanoke Transit Company (GRTC), dba Valley Metro; and authorizing the General Manager of GRTC to take appropriate action to implement such Revised Passenger Fare Schedule to take effect on January 1, 2018. The abovementioned resolution was adopted by the Board of Directors at its regular meeting held on Monday, November 20, 2017. Sincerely, Stephanie M. Moon Rey Id Secretary PC: Sherman M. Stovall, Assistant Vice - President of Operations Amelia C. Merchant, Treasurer Daniel J. Callaghan, General Counsel Laura Carini, Assistant General Counsel Troy A. Harmon, Municipal Auditor Kevin Price, Assistant General Manager, Valley Metro Stephanie Giles, Director of Finance, Valley Metro BOARD OF DIRECTORS OF GREATER ROANOKE TRANSIT COMPANY A RESOLUTION APPROVING AND ADOPTING A REVISED PASSENGER FARE SCHEDULE FOR THE GREATER ROANOKE TRANSIT COMPANY (GRTC), DBA VALLEY METRO; AND AUTHORIZING THE GENERAL MANAGER OF GRTC TO TAKE APPROPRIATE ACTION TO IMPLEMENT SUCH REVISED PASSENGER FARE SCHEDULE TO TAKE EFFECT ON JANUARY 1, 2018. WHEREAS, GRTC staff has recommended a revised passenger fare schedule, which includes fare increases, in order to offset increased purchased transportation, labor and related benefits, and other costs, as further set forth in a report to the GRTC Board dated November 20, 2017; WHEREAS, GRTC properly advertised such fare changes, held a public hearing on October 26, 2017, on such fare changes, and received public comments on such fare changes; and WHEREAS, the GRTC Board of Directors has considered the recommendation of the GRTC staff and the public comments on such fare changes and finds that it is appropriate to approve and adopt such fare changes, to take effect January 1, 2018. THEREFORE, BE IT RESOLVED by the Board of Directors of the Greater Roanoke Transit Company as follows: 1. The Board of Directors hereby approves and adopts the following passenger fare schedule: PASSENGER FARE SCHEDULE — EFFECTIVE JANUARY 1, 2018 Type of Fare Price Basic Fare $ 1.75 Discount Fare $ 0.85 Student w /student I.D. 18 yr. and younger $ 0.85 24 Hour Pass Basic Fare $ 3.50 24 Hour Pass Discount Fare $ 1.70 15 Ride Pass Basic Fare $ 20.00 15 Ride Pass Discount Fare $ 10.00 7 Day Pass Basic Fare $ 16.00 R GRTC -,., eng , Gm Con 2017 7 Day Pass Discount Fare $ 8.00 31 Day Pass Basic Fare $ 56.00 31 Day Pass Discount Fare $ 28.00 S.T.A.R. Fare $ 3.50 Smartway Basic Fare $ 4.00 Smartway Discount Fare $ 2.00 Smartway 24 Hour Pass Basic Fare $ 10.00 Smartway 24 Hour Pass Discount Fare $ 5.00 Smartway 15 Ride Pass Basic Fare $ 54.00 Smartway 15 Ride Pass Discount Fare $ 27.00 Smartway 31 Day Pass Basic Fare $120.00 Smartway 31 Day Pass Discount Fare $ 60.00 Transfers Free The S.T.A.R. Monthly Pass shall remain unchanged. The fee is $96.00 per month for unlimited rides during the month. 2. The above passenger fare schedule shall be effective January 1, 2018, and shall replace the current passenger fares being charged. 3. The General Manager of GRTC is hereby authorized to take appropriate action to implement and administer the passenger fare schedule set forth in paragraph No. 1 above, subject to any needed approval by the Council of the City of Roanoke. ATTEST: Date Adopted Z0� 2w tephanie M. Moon Re} ds, Sec tary RGRT6,.s,,. rT furc inmeases R,, 2017 y M Greater Roanoke Transit Company Board of Directors Meeting Action Item November 20, 2017 The Honorable William D. Bestpitch, President, and Members of the Board of Directors of Greater Roanoke Transit Company Roanoke, Virginia Dear President Bestpitch and Members of the Board: Subject: Approve Proposed Fare Adjustment and Amend the STAR Monthly Fare Pass Policy Background At its July 17, 2017 meeting, the Greater Roanoke Transit Company (GRTC) Board of Directors authorized holding a public hearing on a proposed fare adjustment and amendment to GRTC's Specialized Transit Arranged Ride (STAR) monthly fare pass policy. The public hearing was held on October 26, 2017. Notice of the hearing was advertised, including on GRTC's web site between October 5, 2017 and October 19, 2017; a legal notice was published twice in the Virginia Section of the Roanoke Times, October 10 and 17, 2017, and Roanoke Tribune on October 26, 2017. Based on the official recorded minutes of the public, 19 persons offered the following comments: 1) Eleven (11) did not oppose the fare increase, nine (9) of whom expressed the need for service improvements such as expanded service hours and area of service, express service with 30 minute frequency, and service on Sunday; 2) One (1) expressed opposition and another expressed concern, but not strong opposition, 3) Three (3) expressed the need of service improvements similar to those referenced above, but did not voice opposition to or support of the fare increase, 4) Two (2) expressed opposition to the proposed amendment to the STAR monthly pass policy; one of the two is among the 11 referenced above who did not oppose the fare increase; Greater Roanoke Transit Company PO Box 13247 Roanoke, Virginia 24032 • Phone: 540.982.0305 • Fax:540.982.2703 www.valleymetro.com 5) There was one (1) expression of commendation for the STAR service, without any expressions for or against the proposed fare change or amending the STAR monthly pass policy. Recommendation Approve the attached fare change schedule, which includes a 52 ride passbook for STAR service, effective January 1, 2018. ReMullvioS d, Carl L. Pa e General Manager Cc: Vice President of Operations Assistant Vice President of Operations Treasurer Secretary GRTC General Counsel Municipal Auditor ATTACHMENT GREATER ROANOKE TRANSIT COMPANY PROPOSED FARE INCREASES CASH CURRENT FARE PROPOSED INCREASE ADULT FARE $ 1.50 $ 1.75 DISCOUNT FARE - SENIOR & DISABLED $ 0.75 $ 211N (FREE BOARD /PD BY VWCC) $ 1.50 $ - 1.75 YOUTH YOUTH 18 & UNDER $ 0.751 $ 0.85 TICKETS 1 RIDE BASIC FARE 1 $ 1.50 $ 1.75 1 RIDE DISCOUNT FARE - SENIOR & DISABLED $ 0.75 $ 0.85 1 RIDE SCHOOL - STUDENTS $ 0.75 PASSES 24 H0UR PASS - BASIC $ 5.00 $ 3.50 REDUCTION 24 HOUR PASS - DISCOUNT (SENIOR, STUDENTS & DISABLED) $ 2.50 $ 1.70 REDUCTION 15 RIDE PASS -BASIC $ 20.00 $ 20.00 NO CHANGE 15 RIDE PASS- DISCOUNT (SENIOR, STUDENTS, & DISABLED) $ 10.00 $ 10.00 NO CHANGE 7 DAY PASS - BASIC $ 14.00 $ 16.00 7 DAY PASS - DISCOUNT (SENIOR & DISABLED) $ 7.00 $ 8.00 31 DAY PASS - BASIC $ 48.00 $ 56.00 31 DAY PASS - DISCOUNT (SENIOR & DISABLED) $ 24.00 $ 28.00 STAR TICKETS $ 3.00 $ 3.50 STAR TRIP PASSBOOK * $ 96.00 $ 96.00 NO CHANGE * LIMIT OF 52 TRIPS PER PASSBOOK ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ Audit Presentation Greater Roanoke Transit Company November 20, 2017 *.� Cherry Bekaert- CPAs & AdWw. Engagement Services Overall Audit Results Required Communications with Those Charged with Governance New Accounting Changes ■ ■ ■ N ■ 0 A 0 ■ ■ ■ ■ ■ M ■ w ■ ■ ■ A A ■ ■ ■ r ■ ■ ■ ■ a ■ e 3 ■Ww■■•a■■N■1 9 } n A " A ■ ■ ■ a ■ ■ ■ ■ W ■ ■ Engagement Services ► You have engaged us to provide the following: • Audit of GRTC's FY 2017 financial statements • Audit of GRTC's major federal program as required by the Uniform Guidance • To report on internal control over financial reporting and on compliance as required by Government Auditing Standards • Complete the appropriate sections of the Data Collection Form e ■ ■ ■ ■■ N ■■■■ A A A 11 A A A A A A A A A A A A A A A A■ P � ■ ■ ■ ■ r ■ ■ ■ ■ ■ ■ ■ w " a N N a Q w w ■ ■ ■ ■ ■ • ■ ■ ■ r (II Service Deliverables • Audit Deliverables: • As of and for the fiscal year ended June 30, 2017: • Opinion on the GRTC's financial statements • Report on internal control over financial reporting and on compliance and other matters required by Government Auditing Standards • Report on compliance for the major federal program and internal control over compliance in accordance with the Uniform Guidance %,� Cherry Bekaert' 6 JA f 4:.,...... ■ ■ ■ a ■ ■ ■ ■ w ■ ■ ■ ■ N • ■ N ■ ■ ■ 1 a ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ Overall Audit Results ► Our opinion on the 2017 financial statements is expected to be an unmodified or a "clean" opinion ► Internal control over financial reporting is expected to be unmodified ► Internal control over grant compliance is expected to be unmodified ► Major Federal Program tested: ► Federal Transit Cluster %,0% Cherry Bekaert r ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ • ■ ■ r ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ • ■ ■ ■ ■ ■ ■ ■ ■ " " A A ■ ■ ■ ■ ■ b A ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ Required Communications • GRTC did not adopt any new accounting policies effective July 1, 2016 • No change in the application of other existing accounting policies • Depreciation and Useful Lives of Capital Assets Ow� Cherry Bekaert 9 no CPAa6AJmm ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ jo Required Communications • Audit Adjustments • We did not identify any audit adjustments that were required to be made. • Uncorrected Misstatements • Inaccurate cutoff of bus pass sales — understatement of unearned revenue of approximately $29,700 offset by an overstatement of net position in the amount of $31,200 and an understatement of revenues of $1,500. Cherry Bekaert w ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ e e ■ ■ ■ ■ ■ ■ " " " ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ Required Communications • There were none noted during fieldwork • We encountered no difficulties in performing the audit q,m% Cherry Bekaert"° 1] MO cvA. a Aego.s ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ 0 A N A " ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ Required Communications • Management representation letter will be provided at opinion issuance • Management letter will be issued separately • We are not aware of any relationship that we believe, based on current authoritative guidance, would impair our independence � I% Cherry Bekaert "` 12 so nu c M.o-o., rl New Accounting Changes ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ e e s e ■ ■ ■ ■ ■ ■ ■ ■ 1 ■ ■ ■ ■ ■ ■ ■ New Accounting Changes ► Changes to New Procurement Rules under UGG • Further detailed requirements for entities to have their own documented procurement procedures • Changes in the mirco - purchasing threshold methods • Will be effective for GRCT beginning on July 1, 2018 (2 year grace period from adoption of initial UGG requirements was extended an additional year in May 2017) � a% Cherry Bekaert 14 No CMIAl.- ■ ■ ■ f ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ Your Guide Forward �� Cherry Bekaert"° CM 6M-,