minutes of regular board meeting of southeastern ... · certificates and full compliance...

MINUTES OF REGULAR BOARD MEETING OF

SOUTHEASTERN PENNSYLVANIA TRANSPORTATION AUTHORITY JANUARY 24, 2019

The Regular Meeting of the Board of the Southeastern Pennsylvania Transportation Authority was held on Thursday, January 24, 2019 at 3:02 PM, in the Board Room of the Authority, with the Chairman in the Chair.

Attending the meeting were the following Board Members:

Pasquale T. Deon, Sr., Chairman Thomas E. Babcock, Vice Chairman Joseph E. Brion, Esquire (via telephone) Michael A. Carroll, P.E. Robert D. Fox, Esquire Honorable Stewart J. Greenleaf Kevin L. Johnson, P.E. Obra S. Kernodle, IV Daniel J. Kubik (via telephone) Honorable Kenneth Lawrence William J. Leonard, Esquire (via telephone) Honorable Charles H. Martin Honorable Marcy Toepel (via telephone)

Present from the staff:

Jeffrey D. Knueppel - General Manager Richard G. Burnfield - Deputy General Manager/Treasurer Gino Benedetti, Esquire - General Counsel Stephen A. Jobs - Controller Carol R. Looby - Secretary Stephanie Deiger - AGM, Employee Development Relations Kim Scott Heinle - AGM, Customer Service Francis E. Kelly - AGM, Government & Public Affairs Robert L. Lund - AGM, Engineering, Maintenance & Construction Scott A. Sauer - AGM, Operations

Mr. Deon called the Regular Meeting of the Board to order. He said the Special Meeting, which was noticed, was cancelled. Mr. Deon announced that Joseph Brion, Daniel Kubik, William Leonard and Representative Toepel would be participating by phone. Messrs. Brion, Kubik and Leonard and Representative Toepel acknowledged their presence.

Pledge of Allegiance was observed.

Mr. Deon announced that the Board met in Executive Session just prior to the meeting to discuss legal matters. He stated that if there were speakers who wished to address agenda items they would be called before the Board voted on the item and asked that they limit their remarks to two minutes. He said speakers wishing to address items not on the agenda would be called after the regular business of the Board was completed.

Minutes of Regular Board Meeting January 24, 2019

Approval of Minutes

Mr. Deon entertained a Motion regarding the Minutes of the December 2 Qth Regular Board meeting, which had been circulated. Mr. Babcock moved, Mr. Kernodle seconded, and the Minutes were unanimously approved.

Financial Report

Mr. Burnfield reported that for the month of December revenue and subsidies met budget. He said expenses were exceeded budget by $1 million due to higher fringe benefit expenses.

Mr. Burnfield reported that for the month, there was a deficit of $1 million and year-to-date there was a surplus of $5 million.

Mr. Deon entertained a Motion to adopt the Financial Report. Mr. Carroll moved, Mr. Kernodle seconded and it was unanimously adopted.

The December Financial Report is received and filed and is attached to these Minutes as Exhibit "A."

Mr. Deon then called for speakers wishing to address agenda items. There was no response.

Consent Calendar

Mr. Deon consisted of:

then presented the Consent Calendar, which

"Award of a Contract Pursuant to a Request for Proposals;"

"Acquisition of Eight Permanent Easements and Eight Temporary Construction Licenses from Private Owners for Placement of an Underground Storm Water Transmission Pipe in Folcroft, Delaware County, for the Sharon Hill Flood Mitigation Project;"

"Lease by SEPTA to the Borough of Hatfield of the Hatfield Station Building and Surrounding Parcels of Ground Along the Inactive Portion of the Bethlehem Branch Located in Hatfield, Bucks County;"

"Lease to P4etro Terminal Pizza, LLC for Use and Occupancy of the Inbound .7\mbler Regional Rail Division Stating Building;"

"Authorization Procurements;"

to Award Contracts for

"Award of Contracts for Sole Source Procurements;"

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Various


and

"Authorization to Execute Change Orders and Amendment."

Mr. Leonard joined the meeting at 3:05 PM.

Mr. Deon noted that Item I.A.1., "Award of a Contract Pursuant to a Request for Proposals," was revised and that copies of the revised Resolution were provided to the Board. He also noted that Item I I. A. 3. , "Lease to Metro Terminal Pizza LLC for Use and Occupancy of the Inbound Ambler Regional Rail Di vision Station Building," was withdrawn from the agenda. Mr. Deon stated that all of the remaining i terns on the Consent Calendar were reviewed by the appropriate Board Committees in public session.

Mr. Deon then entertained a Motion to adopt the Resolutions. Mr. Kernodle moved, Commissioner Lawrence seconded and the following Resolutions were unanimously adopted. Commissioner Martin then noted that on Resolution II .A. 2. the location of Hatfield, Bucks County was incorrect. He stated that Hatfield was located in Montgomery County. Commissioner Lawrence agreed with Commissioner Martin that Hatfield was located in Montgomery County and not Bucks County. The Chairman requested that Secretary Looby correct the Resolution. Mr. Johnson then noted that he was abstaining on Item I.A.1.

I.A. AWARD OF A CONTRACT PURSUANT TO A REQUEST FOR PROPOSALS

"WHEREAS, SEPTA, which has need for the services as described below, has advertised and solicited proposals from firm wishing to propose; and

General Manager the contract to the successful

WHEREAS, SEPTA staff has requested that the recommend that the Board authorize the award of the firm listed below because said firm was proposer in the area for which the request for issued; and

proposals was

WHEREAS, the General Manager recommended that the Board authorize the award of the contract.

NOW, THEREFORE, BE IT RESOLVED, that the Board hereby authorizes SEPTA to award subject to the following conditions and the General Manager to execute the following contract, in form approved by the Office of General Counsel, subject to the concurrence of the funding agencies, if required, and contingent upon and subject to the proposers satisfactorily meeting all requirements of the terms and conditions of the relevant request for proposals, including the provision of any required insurance

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certificates and full compliance Disadvantaged Business Enterprise (DBE)

with any requirements:

applicable

1. To HNTB, .f-R.e-. Corporation, for the provision of Phase I and Phase II architectural and engineering consultant services for the King of Prussia Rail Project, with services to be performed over a period of 135 calendar days for Phase I after issuance of Notice-to-Proceed and 280 calendar days for Phase II (if the option is exercised), as described in the staff summary on this subject, for a total contract amount not to exceed $7,282,209 for Phase I and $27,328,176 for the Phase II option (subject to availability of funding), Request for Proposals No. 18-00171-ADLD - Architectural and Engineering Services for King of Prussia Rail Project."

II.A.1. ACQUISITION OF EIGHT PERMANENT EASEMENTS AND EIGHT TEMPORARY CONSTRUCTION LICENSES FROM PRIVATE OWNERS FOR PLACEMENT OF AN UNDERGROUND STORM WATER TRANSMISSION PIPE IN FOLCROFT, DELAWARE COUNTY, FOR THE SHARON HILL FLOOD MITIGATION PROJECT

"WHEREAS, SEPTA has a need for drainage improvements along its Route 102 Sharon Hill Trolley Line at the CSX Transportation, Inc. right-of-way overpass (QHB 5.25) to correct a recurring flooding problem which has caused service interruptions resulting in the use of shuttle buses ("Project"); and

WHEREAS, PECO Energy Company (PECO) owns a certain 4.93 acre parcel of property ("Parcel") located north of Chester Pike in Sharon Hill, Delaware County (Tax Parcel 41-0 3-0 03) and immediately adjacent to the western boarder of SEPTA's Route 102 Sharon Hill Trolley Line; and

WHEREAS, SEPTA requested PECO to grant the Authority a nonexclusive permanent easement in a 50,334 square foot (1.15 acre) portion of the Parcel for construction of a drainage retention pond, a pumping station and part of a six-by-six foot box culvert to improve drainage of the Route 102 right-of-way; and

WHEREAS, on October 25, 2018 the Board authorized SEPTA to acquire from PECO the subject easement for a fair market valuation of $145,000 as determined by a SEPTA-commissioned independent appraiser, plus reasonable incidental charges such as closing costs and recording fees; and

WHEREAS, the water drained from the retention pond will be pumped through a pipe buried along the rear of eight adjoining properties on Llanwellyn Avenue in Folcroft within permanent easements to be acquired from owners Sunday Real Estate Group; Yusef Turner; Shagbark Properties; Dumara Dariusz; James and MaryAnn Newby; Eugene and Emily Fister; Kirby Jackson, Melva Jackson and Tracey Wiley; and Stephen D. McColgan; and

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WHEREAS, eight corresponding temporary construction licenses will also be required from the property owners to facilitate placement of the underground storm water transmission pipe; and

WHEREAS, a SEPTA-commissioned independent determined a fair market value for the eight permanent to be $300 per property, along with a valuation for the construction licenses of $200 per property; and

appraisal easements temporary

WHEREAS, in order to reach an equitable solution with each property owner, a total consideration of $ 7 50 will be paid per property, which will allow for potential improvements to future storm water drainage and service reliability; and

WHEREAS, SEPTA will be responsible for all inspections and on-going maintenance of the storm water management facilities within the easement areas; and

WHEREAS, staff requested that the General Manager recommend that the Board authorize SEPTA to acquire from the eight private property owners permanent easements and temporary construction licenses under the terms and conditions as set forth above and more fully described in the pertinent staff summary; and

WHEREAS, the General Manager made the recommendation to the Board.

NOW, THEREFORE, BE IT RESOLVED, that the Board hereby authorizes SEPTA to acquire from the private property owners the permanent easements and temporary construction licenses needed for the Sharon Hill Flood Mitigation Project under the terms and conditions set forth within the pertinent staff summary, for the combined total fair market valuation of $6, 000 plus reasonable costs and recording fees.

FURTHER RESOLVED, that the Board hereby authorizes the General Manager or his designee to execute all documents, in form approved by the Off ice of General Counsel, and to do any and all other things as shall be necessary and proper in order to effectuate the purpose of this Resolution."

II.A.2. LEASE BY SEPTA TO THE BOROUGH OF HATFIELD OF THE HATFIELD STATION BUILDING AND SURROUNDING PARCELS OF GROUND ALONG THE INACTIVE PORTION OF THE BETHLEHEM BRANCH LOCATED IN HATFIELD, BUCKS COUNTY

"WHEREAS, SEPTA owns the railroad right-of-way that is collectively named the Bethlehem Branch ("Bethlehem Branch") which is located between the Fern Rock section of the City of Philadelphia and the City of Bethlehem, Lehigh County; and

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WEHEREAS, SEPTA does not currently operate passenger service on the Bethlehem Branch beyond Lansdale, Montgomery County; and

WHEREAS, SEPTA owns the ground (74,932 square feet) and building improvements thereon at the Hatfield Railroad Station ("Station") located in Hatfield, Montgomery County, along the inactive portion of the Bethlehem Branch, and has no current or anticipated need for the subject premises; and

WHEREAS, Pennsylvania Northeastern Railroad operates freight service on a segment of the line in the vicinity of the Station pursuant to a trackage rights agreement it acquired from CSX Transportation, Inc.; and

WHEREAS, on February 24, 2000 the Board authorized SEPTA to lease a portion of the vacant ground (approximately 30,660 square feet) adjacent to the Station to the Borough of Hatfield ("Borough") to use for public parking; and

WHEREAS, by agreement dated October 8, 2018, SEPTA currently licenses the Station building itself to the Borough, which in turn sublicenses the building to Salter's Fireplace and Stove, Inc. for use as a private retail establishment; and

WHEREAS, The Borough has requested SEPTA to terminate the existing lease and license/sublicense and enter into a new leasesublease agreement with the Borough for the total Station premises consisting of the grounds and improvements thereon ("Demised Premises") for renovation and subleasing of the Station buildings and the development of parking for public use; and

WHEREAS, the Borough has agreed to a proposed lease-sublease of the Demised Premises for a base term of ten years along with two 5-year renewal option periods, at a SEPTA-contracted fair market value appraised rental of $27,000 annually; and

WHEREAS, in order to offset the estimated $153, 000 capital outlay by the Borough for improvements to the Demised Premises, SEPTA has agreed that rent would be proportionally abated for the first three (3) years, with the balance equally divided and credited for the seven (7) years remaining under the base term of the proposed lease-sublease agreement, with escalations thereafter of 3% annually beginning in the fourth year; and

WHEREAS, the Borough will be responsible for the estimated $6,500 annual cost of all ongoing repairs and maintenance to the Demised Premises during the term of the lease-sublease agreement; and

WHEREAS, the proposed lease-sublease will generate $ 8 0, 14 6. 08 in adjusted rental income to SEPTA over the initial ten-year base term, and $395,979.23 in revenue if both five-year

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options $283,000 shifting Borough;

are exercised, and SEPTA will achieve a savings of during the full term of the lease-sublease agreement by capital improvement and maintenance costs to the

and

WHEREAS, all plans, specification and methods will require SEPTA EM&C approvals, and the lease-sublease agreement will further provide for indemnification of SEPTA, satisfaction of insurance and safety requirements, and SEPTA's ability to recapture the Demised Premises for transportation purposes; and

WHEREAS, if required, SEPTA staff will obtain any necessary Federal Transit Administration (FTA) concurrence of the transaction contemplated hereunder; and

WHEREAS, staff requested that the General Manager recommend that the Board authorize SEPTA to terminate the existing lease and license/sublicense with the Borough and enter in the proposed new lease-sublease agreement with the Borough under the terms and conditions set forth above and more fully described in the pertinent staff summary;


NOW, THEREFORE, BE IT RESOLVED, that the Board hereby authorizes SEPTA to enter into the proposed lease-sublease agreement with the Borough of Hatfield for the Demised Premises under such terms and conditions set for th within the pertinent staff summary.

FURTHER RESOLVED, that the Board hereby authorizes the General Manager or his designee to execute all documents, in form approved by the Office of General Counsel, and to do any and all other things as shall be deemed necessary and proper in order to effectuate the purpose of this Resolution."

II.A.3. LEASE TO METRO TERMINAL PIZZA, LLC FOR USE AND OCCUPANCY OF THE INBOUND AMBLER REGIONAL RAIL DIVISION STATION BUILDING

"WHEREAS, SEPTA owns the ,7\mbler Passenger Station ("Station") along the inbound side of the Lansdale/Doylestown Regional Rail Division (RRD) Line, which is located at 27 West Butler Pike in the Borough of Ambler, Hontgomery County, Pennsylvania; and

WHEREAS, the Station building is comprised of approximately 1, 2 7 6 square feet of space which includes with one bathroom and 13 dedicated parking spaces ("Demised Premises") , and has been offered for lease via SEPTA's competitive bidding process for a minimum annual rental of $32,000; and

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WHEREAS, SEPTA received only two sealed bids, with Metro Terminal Pizza, LLC ("Metro") submitting the highest bid of $39,500 annually ($3,291.67 monthly), and was determined to be a responsive and responsible bidder; and

WHEREAS, Metro has offered to enter into a lease agreement ("Lease") with SEPTA for the Demised Premises for an initial term of five (5) years, along with ten (10) consecutive one year renewal option periods, to use and occupy the Demised Premises as a restaurant and retail store; and

WHERK1\S, the annual base rental for the Demised Premises shall be $39,500 for the first year of the initial term of the Lease, with annual increases thereafter at the rate of 3 % per year over the annual rental of the prior year; and

WHERE.7\S, the proposed Lease will generate $ 2 0 9, 710. 8 6 in rental revenue to SEPTA over the initial five year base term, and an additional $524,946.23 in revenue if all ten one year options are e1wrcised thereby generating total receipts of $ 7 3 4, 65 7. 10; aB-6

WHEREPsS, Metro accepted the Demised Premises in "as is" condition, and under the proposed Lease, Metro shall also be responsible for all interior improvements, maintenance and repairs (including the heating, ventilation and air conditioning system) , as well as separately metered utilities and trash removal; and

WHEREAS, SEPTA shall be responsible for all snow and ice removal from the Demised Premises; and

WHEREAS, if required, SEPTA will obtain any necessary Federal Transit Administration (FTA) concurrence of the transaction contemplated hereunder; and

WHEREAS, staff requested that the General ~4anager recommend that the Board authorize SEPTPs to enter into the proposed lease agreement with Metro for the Demised Premises under the terms and conditions set forth above and more fully described in the pertinent staff summary; and


NOW, THEREFORE, BE IT RESOLVED, that the Board hereby authorizes SEPTA to enter into the proposed lease agreement with Metro Terminal Pizza, LLC for the Demised Premises under the terms and conditions set forth within the pertinent staff summary.

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FURTHER RESOLVED, that the Board hereby authorizes the General Hanager or his designee to e}cecute all documents, in form approved by the Office of General Counsel, and to do any and all other things that shall be necessary and proper in order to effectuate the purpose of this Resolution."

II.B. AUTHORIZATION TO AWARD CONTRACTS FOR VARIOUS PROCUREMENTS

"WHEREAS, SEPTA advertised and invited bids for the supplies identified below; and

WHEREAS, the firms listed below was the lowest responsive and responsible bidders to the invitations for bids; and

WHEREAS, staff requested that the General Manager recommend that the Board authorize SEPTA to award the contracts identified below; and


NOW, THEREFORE, BE IT RESOLVED, that the Board hereby Authorizes SEPTA to award and for the General Manager or his designee to execute the contracts identified below in form approved by the Office of General Counsel, subject to and contingent upon the concurrence of the funding agencies, if required, and contingent upon and subject to the vendors satisfactorily meeting all requirements of the bid terms and specifications, including full compliance with any applicable Disadvantaged Business Enterprise requirements:

1. To Globe Electric Supply Co., Inc., for the purchase of LED lighting tubes to be installed along the Market-Frankford Subway Elevated (MFSE) Line from 46th through Milbourne Stations, with deli very of material within 10-12 weeks after issuance of Notice-to-Proceed, as described in the staff summary on this subject, for a total contract amount not to exceed $ 32 9, 175. 2 0, Sealed Bid No. 18-00265-ATAZ - Lighting Tubes.

2. To Rumsey Electric Company, Inc., for Lines 1 and 2, at unit prices of $1,238. 79 and $1,002.47, respectively, for a total contract amount not to exceed $206,611.37; and to Denney Electric Supply of Ambler, Inc., for Lines 3 and 4, at unit prices of $ 4 31. 4 8 and $ 351. 10, respectively, for a total contract amount not to exceed $31,768.76, for the purchase of LED lights for the main building and wheel house of the Overbrook facility, with delivery of material within 30 days after issuance of Notice-toProceed, as described in the staff summary on this subject, Sealed Bid No. 18-00278-ADWC - LED Lights for Overbrook.

3. To RL Controls, LLC, for the purchase of ten shaft quills to be used in the vehicle overhaul (VOH) and maintenance

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of the Silverliner V rail car fleet, at a unit price of $13, 884. 59, with delivery of material scheduled to commence in September 2019, as described in the staff summary on this subject, for a total contract amount not to exceed $138, 8 4 5. 90, Sealed Bid No. 18-00253-ASTC - Shaft Quills for the SLV Fleet.

4. To Castle Branch, Inc., for the provision of a variety of background screening checks on selected candidates for employment with SEPTA, with services to be performed on an "as required" basis over a period of three years scheduled to commence on February 1, 2019, as described in the staff summary on this subject, for a total contract amount not to exceed $ 3 61, 118. 4 0, Sealed Bid No. 18-002 8 3-APQC - Employee Background Screening."

II.C. AWARD OF CONTRACTS FOR SOLE SOURCE PROCUREMENTS

"WHEREAS, SEPTA has need for the described below and those supplies and only from the firms listed below; and

supplies and services services are available

WHEREAS, staff reviewed the cost of the supplies and services and the General Manager recommended that the Board authorize SEPTA to award the contracts.

NOW, THEREFORE, BE IT RESOLVED, that the Board hereby authorizes SEPTA to award and the General Manager or his designee to execute the contracts identified below, in form approved by the Office of General Counsel, subject to the concurrence of the funding agencies, if required, and contingent upon and subject to the vendor/contractor satisfactorily providing any required bonds, insurance certificates and/ or other documents, and complying with any applicable Disadvantaged Business Enterprise requirements:

1. To Ansaldo STS USA, Inc., for the purchase of switches and accessories needed to support the installation of a new crossover at Fairmount Interlocking and replacement of existing switches at Newtown Junction Interlocking, with delivery of material expected to be completed within seven months of issuance of Notice-to-Proceed, as described in the staff on this subject, for a total contract amount not to exceed $531,870, Sole Source No. 18-00264-ACZC - Ansaldo Switches and Accessories.

2. To AT&T Mobility National Accounts, LLC d/b/a AT&T Mobility, for the provision of ProntoForms Mobile Forms subscription services on mobile devices that will replace the paper forms currently being used by Operations field personnel, with services to be performed over a period of one year commencing in February 2019, a as described in the staff summary on this subject, for a total contract amount not to exceed

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$53,900, Sole Source No. 18-00304-ACKR - ProntoForms Mobile Forms Subscription Services.

3. To Harsco Corporation d/b/a Harsco Rail (a Division of Harsco), for the purchase of various parts to be used for the ongoing maintenance of tampers, ballast regulators, tie handler, prime movers, rail grinders, vacuum cars and tunnel washers, with delivery of material on an "as requiredu basis over a period of three years commencing in January 2019, as described in the staff summary on this subject, for a total contract amount not to exceed $200,000, Sole Source No. 18-00061-ACZC - Harsco Parts for SEPTA.

4. To Copperweld Bimetallics, L.L.C., for the purchase of 212, 320 feet of messenger wire to be used for catenary renewal projects throughout the Authority, at a unit price of $3. 68 3 9, with delivery of material on an "as requiredu basis over a period of three years commencing on February 1, 2019, as described in the staff summary on this subject, for a total contract amount not to exceed $782,165.65, Sole Source No. 18-00273-ALSP Messenger Wire.

5. To ARINC, Incorporated, for the provision of engineering services and equipment for SEPTA's Railroad Operations Control Center (ROCC) that will enable Amtrak personnel to view SEPTA trains approaching their territory, with services expected to be performed within 100 days of issuance of Notice-to-Proceed, a as described in the staff summary on this subject, for a total contract amount not to exceed $49,543, Sole Source No. 18-00246-AMWB - Engineering Services and Equipment for SEPTA's Railroad Operation Control Center.

6. To Montgomery County Community College/Police Academy, for the provision of training for approximately 30 recruits annually who will be required to perform in accordance with proper police practices and serve as role models in the community as representatives of the Authority advancing SEPTA' s goals of safety and customer service, with services to be performed over a period of one year scheduled to commence in February 2019, as described in the staff summary on this subject, for a total contract amount not to exceed $179,850, Sole Source No. 18-00313-ADLD - SEPTA Transit Police Training.

7. To Colette Holt & Associates, for the provision of legal counsel to the Pennsylvania Unified Certification Program's Oversight and Disadvantaged Business Enterprise (DBE) Appeals Committee, with services to be performed over a period of one year commencing in February 2019, as described in the staff summary on this subject, for a total contract amount not to exceed $72,000, Sole Source No. 18-00238-ACKR Legal Counsel Services to PA UCP.

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8. To B2Gnow/AskReply, Inc., for the implementation, maintenance and support of Disadvantaged Business Enterprise (DBE) Certification Software System exclusively designed to support the unique needs of the federally-mandated DBE/ACDBE Program, with services to be performed over a period of three years scheduled to commence in February 2019, as described in the staff summary on this subject, for a total contract amount not to exceed $336, 227, Sole Source No. 18-00316-ADLD DBE Certification Software System for the Pennsylvania Unified Certification Program (PA UCP) ."

II.D. AUTHORIZATION TO EXECUTE CHANGE ORDERS AND AMENDMENT

"WHEREAS, additional work is required to complete the projects identified below; and

WHEREAS, staff reviewed the cost of the additional work and the General Manager recommended that the Board authorize SEPTA to order the additional work.

NOW, THEREFORE, BE IT RESOLVED, that the Board hereby authorizes SEPTA to award and the General Manager or his designee to execute the change orders and the amendment identified below in form approved by the Office of General Counsel, subject to the concurrence of the funding agencies, if required, and to any applicable Disadvantaged Business Enterprise requirements:

1. To Mulhern Electric Company, Inc., for Change Order No. 3, which provides for additional electrical construction work on the 103 Victory Avenue Project, at an increase in cost not to exceed $149,576, bringing the total contract price, including all change orders to date, to an amended contract amount not to exceed $1, 328, 905, provided that with the Board's approval of this change order, the Board authorizes the resetting of prior authorized cumulative change order amount to zero dollars ( $0) and the establishment of a new cumulative change order threshold of 10% or $ 5 0 0, 0 0 0, pursuant to the Resolution adopted by the Board on May 22, 2008, which Resolution authorized a "Delegation of Authority for Change Orders, Amendments and Assignments."

2. To Zones, Inc., for Change Order No. 1, which provide for a credit under the Volume Lease Agreement (VLA) for Microsoft Licenses for various software products, at a decrease in cost not to exceed $238,708.64, bringing the total contract price, including this change order, to an amended contract amount not to exceed $1,816,498.43.

3. To Simmons Machine Tool Corporation, for Change Order No. 1, which provides for an unused allowance credit on the Rebuild Truing Machines Project, at a decrease in cost not to exceed $149, 745, bringing the total contract price, including

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this change order, to an amended contract amount not to exceed $1,933,405.

4. To Alstom Signaling, Inc., for Change Order No. 1, which provides for electrical equipment and designs to allow for updates to the Real-Time Vehicle System (RTVL) software supporting the Market-Frankford Subway Elevated (MFSE) Line, at an increase in cost not to exceed $141,698, bringing the total contract price, including this change order, to an amended contract amount not to exceed $737,442.

5. To CRRC MA Corporation, for Change Order No. 2, which provides for the supply and installation of external Network Interface Modules and Maintenance Access Center Panels for 11 cab cars (plus two spares) under the contract for multi-level cab and coach rail cars to establish communication with the Maintenance and Diagnostic System (MOS), at an increase in cost not to exceed $178,239, bringing the total contract price, including all change orders to date, to an amended contract amount not to exceed $138,171,678.

6. To The North Highland Company, Inc., for Amendment No. 1, which provides for an additional module to the scope of work for management consultant services, at an increase in cost not to exceed $200,000, bringing the total contact price, including this amendment, to an amended contract amount not to exceed $700,000."

Report of General Manager

Mr. Knueppel stated that the weather was just one of the factors that we take into consideration as part of the day-to-day operation of our system. He said that while it was not something we can directly control, SEPTA personnel, from across the organization plan and prepare for a variety of situations. He stated that the summer's heat and hurricanes, the fall's slippery rail, and the spring' s downpours were all conditions that can impact service and our customers. Mr. Knueppel said that staff has a response plan for all of those events. He added that the cold weather months could be especially difficult, bringing snow combined with sleet, icing, high winds, and frigid cold temperatures, in varying degrees across our service region.

Mr. Knueppel said that for SEPTA, the forecast was just our call to action. He explained that long before the first mention of inclement weather, we knew which people, equipment, and service we were going to deploy based on our comprehensive winter weather plan. He said that lessons learned from previous seasons have helped to update the plan each year, identify tools needed to keep the system running, fine tune revenue vehicle storage plans, refine SEPTA and contractor force deployments, revise operational schedules and detours, and enhance communication with customers and crews. Mr. Knueppel said that among the improvements made in recent years included a new combination

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work-plow train for the Norristown High Speed Line to combat snow drifts on the tracks and special schedules for all Regional Rail Lines that go into effect every time we announce a severe weather event.

Mr. Knueppel mentioned that even though the meteorologist's predictions the previous weekend were not quite accurate about snow accumulation, many hardworking SEPTA employees spent long hours working in frigid temperatures on Monday.

Mr. Knueppel concluded by expressing his thanks and appreciation to SEPTA personnel for their efforts to ensure that service would be available even under difficult operating conditions.

Mr. Deon then called for speakers.

Speakers

Anne C. Croisier

Ms. Croisier read directly from a letter which she submitted and is attached to the original Minutes as Exhibit "B."

Mr. Deon thanked Ms. Croisier for her comments.

Kelvin Carrington

Mr. Carrington stated that someone at the bus depot at 19th and Johnston Streets had instructed Route 1 7 bus operators to park their buses north of the starting point of Johnston Street due to the lack of parking at that location. He said this location was a half of a block north of where the bus shelter was located.

Mr. Carrington mentioned that he had spoken at a previous Board Meeting concerning the relocation of the Route 17 bus stop from 19th Street and JFK Boulevard to Market Street. He noted that someone was to look into this matter. Mr. Carrington said he has not seen any bicycles out there, which was one of the reasons the bus stop was moved off of JFK Boulevard.

Mr. Carrington stated that his last comment was about a speaker at a previous Board meeting who spoke about not being able to use her pass and the distance that she had to walk. He said she also spoke about her health issues. He said the most important thing was the distance she had to walk.

Mr. Deon thanked Mr. Carrington for speaking. He then asked Mr. Sauer to meet with Mr. Carrington following the meeting.

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Mr. Deon then asked if there was anybody with any questions or comments. There was no response.

Adjournment

There being no further business to come before the Board at this Regular Meeting, it was moved by Mr. Johnson seconded by Mr. Kernodle, and unanimously adopted that the meeting be adjourned.

A gentleman from the audience stood and requested to speak. He introduced himself as Dan Trubman and he said he wanted to urge the Board to proceed with the comprehensive bus network design. He said his understanding was that it has been ready to go since the summer. He said he did not understand why there was a delay.

Mr. Trubman said he urges the Board to proceed or at least to give a little more public information on what the delay was in proceeding with the comprehensive bus network design. He said Jarrett Walker had made it very clear that there were opportunities for SEPTA to include this bus network. Mr. Trubman stated that he thought it important to proceed.

Mr. Trubman closed by stating it was a multi-year process and that any delay now just seemed unwarranted.

The Chairman thanked Mr. Trubman for his comments and said staff was moving ahead on the comprehensive bus network design. He added that staff has been working out some matters with the City.

The Chairman adjourned the meeting at 3:15 PM.

Carol R. Looby Secretary

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SOUTHEASTERN PENNSYLVANIA TRANSPORTATION AUTHORITY

FINANCIAL REPORT

DECEMBER 2018

For Period Ended December 29, 2018

January 14, 2019

t'1 :>< ::i:: H to H 1-3

~

FINANCIAL REPORT - DECEMBER 2018

COMMENTARY

Summary of Financial Results and Commentary

GROUP 1-CONSOLIDATED OPERATIONS

(1.1) Consolidating Statement oflncome - (YTD) (1.2) Consolidating Statement of Revenue and Expense - (YTD) (1.3) Consolidating Statement oflncome - (One Month) (1.4) Consolidating Statement of Revenue and Expense - (One Month)

GROUP 2- CITY TRANSIT DIVISION

(2.1) Comparative Statement of Income (2.2) Detail Income Statement - (One Month) (2.3) Detail Income Statement - (YTD)

GROUP 3 - VICTORY DIVISION

(3 .1) Comparative Statement of Income (3.2) Detail Income Statement - (One Month) (3.3) Detail Income Statement - (YTD)

GROUP 4 - FRONTIER DIVISION

(4.1) Comparative Statement of Income ( 4.2) Detail Income Statement - (One Month) (4.3) Detail Income Statement - (YTD)

GROUP 5 - REGIONAL RAIL DIVISION

(5.1) Comparative Statement oflncome (5.2) Detail Income Statement - (One Month) (5.3) Detail Income Statement - (YTD)


COMMENTARY

Summary of Financial Results and Commentary

SOUTHEASTERN PENNSYLVANIA TRANSPORTATION AUTHORITY DECEMBER AND YEAR-TO-DATE RESULTS OF OPERATIONS

SUMMARY

The following is a summary of Divisional operating results (i.e. deficit before operating subsidies) and consolidated

results after subsidies for December and the six-month period then ended. The results are compared to the Fiscal Year

2019 budget and to the prior year results in the accompanying financial statements.

(IN THOUSANDS) SIX MONTHS

DIVISION MONTH OF DECEMBER ENDED DECEMBER 2018 2017 2018 2017

City Transit $ (50,725) $ (49,509) $ (289,020) $ (290,828) Victory (6,594) (5,495) (36,315) (35,371) Frontier (2,300) (2,244) (13,834) (13,557)

Regional Rail (17,499} (16,575) (101,882) (101,272)

Total Deficit Before Subsidies (77, 118) (73,823) (441,051) (441,028)

Operating Subsidies 76, 156 75,870 446,045 448,234

Surplus/(Deficit) After Subsidies (962} 2,047 4,994 7,206

Unrealized Investment Gain/(Loss) · 336 (246} 130 (588) Surplus/(Deficit) after Investment Gain/(Loss) $ (626) $ 1,801 $ 5,124 $ 6,618

The deficit after subsidies for the month of December was $962 thousand and the cumulative surplus for the six

months was $5.0 million. Passenger revenue for the month was $812 thousand (or 2.3%) lower than budget. Passenger

revenue for the six months of Fiscal 2019 was $3.5 million (or 1.5%) lower than budget. Shared Ride Program revenue was

$105 thousand lower than budget for the month of December and was $469 thousand (or 5.6%) lower than budget for

December year-to-date. Operating expenses for the month of December were $978 thousand higher than budget. For the

six-month period, operating expenses were $6.6 million (or 0.9%) lower than budget. - 1 -


DIVISIONAL COMMENTARY ON DECEMBER AND YEAR-TO-DATE RESULTS

CITY TRANSIT DIVISION

The Division's operations for December resulted in a deficit before subsidies of $50.7 million for the month and a year

to-date deficit before subsidies of $289.0 million, which is 3.6% lower than budget.

Passenger revenue for the month of December was $415 thousand (or 1.9%) lower than budget. For the six months

of Fiscal 2019 total passenger revenue was $584 thousand (or 0.4%) lower than budget. Shared Ride Program revenue for

December year-to-date was $469 thousand (or 5.6%) lower than budget. Operating expenses for the six-month period were

lower than budget.

For the six months of the fiscal year, the operating surplus after subsidies was $3.3 million.

VICTORY DIVISION

The Division's operations for December resulted in a deficit before subsidies of $6.6 million bringing the cumulative

deficit before subsidies for the six months of the fiscal year to $36.3 million, which is 1.1 % higher than budget.

Passenger revenue for December was $71 thousand (or 3.8%) higher than budget, and for the six months of Fiscal

2019 was $444 thousand (or 3.6%) higher than budget. Operating expenses for the six-month period were higher than

budget.

For the six months of the fiscal year, the operating surplus after subsidies was $400 thousand.

- 2 -

FRONTIER DIVISION


Operations for the month of December resulted in a deficit before subsidies of $2.3 million bringing the cumulative

deficit before subsidies for the six months of the fiscal year to $13.8 million, which is 1.7% higher than budget.

Passenger revenue for December was $13 thousand (or 2.7%) higher than budget, and for the six months of Fiscal

2019 was $11 thousand (or 0.3%) higher than budget. Operating expenses for the six-month period were higher than

budget.

For the six months of the fiscal year, the operating surplus after subsidies was $148 thousand.

REGIONAL RAIL DIVISION

Operations for the month of December resulted in a deficit before subsidies of $17.5 million bringing the cumulative

deficit before subsidies for the six-month period to $101.9 million, which is 6.4% higher than budget.

Passenger revenue for December was $481 thousand (or 4.2%) lower than budget, and for the six months of Fiscal

2019 passenger revenue was $3.4 million (or 4.6%) lower than budget. Operating expenses for the six-month period were

higher than budget.

For the six months of the fiscal year, the operating surplus after subsidies was $1.1 million.

- 3 -


GROUP 1 - CONSOLIDATED OPERATIONS

(1.1) Consolidating Statement oflncome - (YTD) (1.2) Consolidating Statement of Revenue and Expense - (YTD) (1.3) Consolidating Statement oflncome - (One Month) (1.4) Consolidating Statement of Revenue and Expense - (One Month)

OPERATING REVENUES

Passenger Revenue Other Operating Revenue

Sub-Total - Operating Revenue

Shared Ride Program

TOTAL REVENUE AVAILABLE FOR OPERATIONS

OPERATING EXPENSES

DEFICIT BEFORE SUBSIDIES

OPERATING SUBSIDIES

SURPLUS AFTER SUBSIDIES

Unrealized Investment Gain/(Loss)

SURPLUS AFTER INVESTMENT GAIN/(LOSS)

Page 1.1 1/14/19

SOUTHEASTERN PENNSYLVANIA TRANSPORTATION AUTHORITY CONSOLIDATING STATEMENT OF INCOME SIX MONTHS ENDED DECEMBER 29, 2018

(THOUSANDS)

CITY REGIONAL TRANSIT VICTORY FRONTIER RAIL DIVISION DIVISION DIVISION DIVISION

$ 141,071 $ 12,663 $ 3,311 $ 70,033 $ 13,026 1,476 376 7,019

154,097 14, 139 3,687 77,052 7,871 - - -

161,968 14,139 3,687 77,052

450,988 50,454 17,521 178,934

(289,020) (36,315) (13,834) (101,882)

292,369 36,715 13,982 102,979

$ 3,349 $ 400 $ 148 $ 1,097 $ 25 1 1 103

$ 3,374 $ 401 $ 149 $ 1,200 $

BUDGET VARIANCE TOTAL BUDGET SEPTA AMOUNT AMOUNT PERCENT

227,078 $ 230,583 $ (3,505) (1.52) 21,897 20,360 1,537 7.55

248,975 250,943 (1,968) (0.78) 7,871 8,340 (469) (5.62)

256,846 259,283 (2,437) (0.94)

697,897 704,522 6,625 0.94

(441,051) (445,239) 4,188 0.94

446,045 445,239 806 0.18

4,994 $ - $ 4,994

130 - 130

5,124 $ - $ 5,124

SOUTHEASTERN PENNSYLVANIA TRANSPORTATION AUTHORITY CONSOLIDATING STATEMENT OF REVENUES AND EXPENSES

SIX MONTHS ENDED DECEMBER 29, 2018

(THOUSANDS)

CITY TRANSIT VICTORY FRONTIER REGIONAL RAIL DIVISION DIVISION DIVISION DIVISION TOTAL SEPTA

OPERATING REVENUES BUDGET ACTUAL BUDGET ACTUAL BUDGET ACTUAL BUDGET ACTUAL BUDGET ACTUAL

Passenger Revenue $ 141,655 $ 141,071 $ 12,219 $ 12,663 $ 3,300 $ 3,311 $ 73,409 $ 70,033 $ 230,583 $ 227,078 Shared Ride Program 8,340 7,871 . . . . . . 8,340 7,871 Investment Income 664 938 32 47 8 15 672 815 1,376 1,815

Other Income 11,002 12,088 1,210 1,429 374 361 6,398 6,204 18,984 20,082

TOTAL OPERATING REVENUE 161,661 161,968 13,461 14, 139 3,682 3,687 80,479 77,052 259,283 256,846

OPERATING EXPENSES

Labor, including Paid Absences 213,631 208,803 23,495 24,591 9,323 9,206 70,585 72,205 317,034 314,805 Fringe Benefits 138,165 131,924 12,905 13,184 4,277 4,744 37,322 37,039 192,669 186,891 Material & Services 73,077 74,082 9,894 9,582 2,190 2,088 53,146 54,490 138,307 140,242 Injuries & Damages 10,912 10,912 534 534 208 208 2,606 2,606 14,260 14,260 Propulsion Power 5,649 5,550 576 575 . . 9,286 8,875 15,511 15,000 Fixed Rent 1,743 1,901 87 99 30 32 595 654 2,455 2,686 Fuel 11,035 10,734 1,785 1,784 1,227 1,217 318 224 14,365 13,959

Depreciation 7,370 7,082 111 105 24 26 2,416 2,841 9,921 10,054

TOTAL OPERATING EXPENSES 461,582 450,988 49,387 50,454 17,279 17,521 176,274 178,934 704,522 - 697,897

DEFICIT BEFORE SUBSIDIES (299,921) (289,020) (35,926) (36,315) (13,597) __ (13,834) (95,795) (101,882) (445,239) (441,051)

OPERATING SUBSIDIES

Federal 12,730 12,381 1,561 1,595 577 594 2,854 3,152 17,722 17,722 State 237,471 230,812 29,826 30,470 11,029 11,344 54,544 60,244 332,870 332,870 Local 35,621 34,622 4,474 4,571 1,654 1,702 8,182 9,036 49,931 49,931 Lease Cost/Debt Service 13,487 13,909 65 79 19 22 29,363 29,697 42,934 43,707

Other-Route Guarantees 612 645 . . 318 320 852 850 1,782 1,815

TOTAL SUBSIDIES 299,921 292,369 35,926 36,715 13,597 13,982 95,795 102,979 445,239 446,045 -SURPLUS AFTER SUBSIDIES $ $ 3,349 $ . $ 400 $ $ 148 $ $ 1,097 $ $ 4,994

Unrealized Investment Gain/(Loss) . 25 . 1 . 1 . 103 . 130

SURPLUS AFTER INVESTMENT GAIN/(LOSSl $ . ~374 $ . $ 401 $ . $ 149 $ . $ 1,200 $ . $ 5,124

Page 1.2 1/14/19

OPERATING REVENUES

Passenger Revenue

Other Operating Revenue

Sub-Total - Operating Revenue

Shared Ride Program

TOTAL REVENUE AVAILABLE FOR OPERATIONS

OPERATING EXPENSES

DEFICIT BEFORE SUBSIDIES

OPERATING SUBSIDIES

DEFICIT AFTER SUBSIDIES


DEFICIT AFTER INVESTMENT GAIN/(LOSSI

Page 1.3 1114/19

SOUTHEASTERN PENNSYLVANIA TRANSPORTATION AUTHORITY CONSOLIDATING STATEMENT OF INCOME ONE MONTH ENDED DECEMBER 29, 2018

(THOUSANDS)

CITY REGIONAL TRANSIT VICTORY FRONTIER RAIL DIVISION DIVISION DIVISION DIVISION

$ 21,391 $ 1,919 $ 494 $ 10,996 $ 2,154 230 54 1,071

23,545 2,149 548 12,067 1,178 . . .

24,723 2,149 548 12,067

75,448 8,743 2,848 29,566

(50,725) (6,594) (2,300) (17,499)

49,945 6,453 2,243 17,515

$ !780) $ (141) $ (57) $ 16 $ 184 12 4 136

$ (596) $ (129) $ (53) $ 152 $

BUDGET VARIANCE TOTAL BUDGET SEPTA AMOUNT AMOUNT PERCENT

34,800 $ 35,612 $ (812) (2.28) 3,509 3,359 150 4.47

38,309 38,971 (662) (1.70) 1,178 1,283 (105) (8.18)

39,487 40,254 (767) (1.91)

116,605 115,627 (978) (0.85)

(77,118) (75,373) (1,745) (2.32)

76,156 75,373 783 1.04

(962) $ . $ !962) 336 . 336

(626) $ . $ (626)

SOUTHEASTERN PENNSYLVANIA TRANSPORTATION AUTHORITY CONSOLIDATING STATEMENT OF REVENUES AND EXPENSES

ONE MONTH ENDED DECEMBER 29, 2018

(THOUSANDS)

CITY TRANSIT VICTORY FRONTIER REGIONAL RAIL DIVISION DIVISION DIVISION DIVISION TOTAL SEPTA

OPERATING REVENUES BUDGET ACTUAL BUDGET ACTUAL BUDGET ACTUAL BUDGET ACTUAL BUDGET ACTUAL

Passenger Revenue $ 21,806 $ 21,391 $ 1,848 1,919 481 $ 494 $ 11,477 $ 10,996 $ 35,612 $ 34,800 Shared Ride Program 1,283 1,178 - - - - - - 1,283 1,178 Investment Income 104 175 5 10 1 4 91 106 201 295 Other Income 1,859 1,979 200 220 64 50 1,035 965 __ 3_,158 3,214

TOTAL OPERATING REVENUE 25,052 24,723 2,053 2,149 546 548 _____!,;603 12,067 40,254 39,487

OPERATING EXPENSES

Labor, including Paid Absences 33,731 33,445 3,719 4,010 1,449 1,472 11, 196 11,535 50,095 50,462 Fringe Benefits 23,729 24,829 2,348 2,819 740 850 6,248 6,433 33,065 34,931 Material & Services 12,269 11,408 1,535 1,425 357 297 9,038 9,053 23,199 22,183 Injuries & Damages 1,679 1,679 82 82 32 32 422 422 2,215 2,215 Propulsion Power 1,073 1,067 116 116 - - 1,561 1,545 2,750 2,728 Fixed Rent 300 373 15 24 5 8 100 122 420 527 Fuel 1,713 1,467 276 251 190 185 49 15 2,228 1,918 Depreciation 1,227 1,180 19 16 4 4 405 441 1,655 1,641

TOTAL OPERATING EXPENSES 75,721 75,448 8,110 8,743 2,777 2,848 29,019 29,566 115,627 ~605

DEFICIT BEFORE SUBSIDIES (50,669) (50,725) (6,057) (6,594) (2,231) (2,300) (16,416) (17,499) (75,373) (77,118)

OPERATING SUBSIDIES

Federal 2,151 2,100 263 280 94 95 492 525 3,000 3,000 State 40, 115 39,153 5,029 5,346 1,808 1,814 9,401 10,040 56,353 56,353 Local 6,018 5,875 754 802 271 272 1,411 1,505 8,454 8,454 Lease Cost/Debt Service 2,283 2,705 11 25 5 8 4,970 5,304 7,269 8,042 Other-Route Guarantees 102 112 - - 53 54 142 141 297 307

TOTAL SUBSIDIES 50,669 49,945 6,057 6,453 2,231 2,243 16,416 17,515 75,373 ~156

DEFICIT AFTER SUBSIDIES $ - $ (780) $ - $ !141) $ - $ (57) $ - $ 16 $ - $ (962)

Unrealized Investment Gain/(Loss) - 184 - 12 - 4 - 136 - 336

DEFICIT AFTER INVESTMENT GAIN/(LOSS! $ - $ (596) $ - $ (129) $ - $ (53) $ - $ 152 $ - $ (626)

Page 1.4 1/14/19


GROUP 2 - CITY TRANSIT DIVISION


BUDGET

AMOUNT

$ 21,806

$

1,963

23,769

1,283

25,052

75,721

(50,669)

50,669

4,921

408

12,337

45

Page 2. 1 1/14/2019

SOUTHEASTERN PENNSYLVANIA TRANSPORTATION AUTHORITY CITY TRANSIT DIVISION

COMPARATIVE STATEMENT OF INCOME PERIOD ENDED DECEMBER 29, 2018

(THOUSANDS)


THIS YEAR

ACTUAL

AMOUNT

$ 21,391

$

2,154

23,545

1,178

24,723

75,448

(50,725)

49,945

(780)

184

(596)

4,805

348

11,668

44

ACTUAL

BETTER/

(WORSE)

BUDGET%

(1.90)

9.73

(0.94)

(8.18)

(1.31)

0.36

(0.11)

(1.43)

(2.36)

(14.71)

(5.42)

(2.22)

LAST YEAR

ACTUAL

BETTER/

ACTUAL (WORSE) BUDGET

AMOUNT LAST YEAR% AMOUNT

OPERATING REVENUES

$ 21,361 0.14 Passenger Revenue $ 141,655

1,916 12.42 Other Operating Revenue 11,666

23,277 1.15 Sub-Total - Operating Revenue 153,321

1,186 (0.67) Shared Ride Program 8,340

24,463 1.06 TOTAL REVENUE AVAILABLE FOR OPERATIONS 161,661

73,972 (2.00) OPERATING EXPENSES 461,582

(49,509) (2.46) DEFICIT BEFORE SUBSIDIES (299,921)

50,955 (1.98) OPERATING SUBSIDIES 299,921

1,446 SURPLUS/(DEFICIT) AFTER SUBSIDIES

(88) Unrealized Investment Gain/(Loss)

-$ 1,358 SURPLUS/(DEFICIT) AFTER INVESTMENT GAIN/(LOSS $

4,736

351

11,071

43

1.46 TOTAL VEHICLE MILES

(0.85) SHARED RIDE PROGRAM IN ABOVE

5.39 REVENUE PASSENGER JOURNEYS

2.33 SHARED RIDE PROGRAM IN ABOVE

31,608

2,523

80,310

322


THIS YEAR LAST YEAR

ACTUAL ACTUAL

BETTER/ BETTER/

ACTUAL (WORSE) ACTUAL (WORSE)

AMOUNT BUDGET% AMOUNT LAST YEAR%

$ 141,071 (0.41) $ 139,113 1.41

13,026 11.66 11,205 16.25

154,097 0.51 150,318 2.51

7,871 (5.62) 8,528 (7.70)

--161,968 0.19 158,846 1.97

450,988 2.30 449,674 (0.29)

(289,020) 3.63 (290,828) 0.62

292,369 (2.52) 295,875 (1.18)

3,349 5,047

25 (324)

--$ 3,374 $ 4,723

31,394 (0.68) 31,146 0.80

2,334 (7.49) 2,452 (4.81)

77,886 (3.02) 77,477 0.53

293 (9.01) 316 (7.28)

SOUTHEASTERN PENNSYLVANIA TRANSPORTATION AUTHORITY CITY TRANSIT DIVISION

DETAIL INCOME STATEMENT


(THOUSANDS)

THIS YEAR ACTUAL THIS YEAR THIS YEAR ACTUAL

LAST YEAR BETTER (WORSE) LAST YEAR BUDGET ACTUAL BETTER (WORSE) BUDGET

AMOUNT AMOUNT % AMOUNT AMOUNT AMOUNT %

OPERATING REVENUES

$ 21,361 $ 30 0.14 Passenger Revenue $ 21,806 $ 21,391 $ (415) (1.90) 119 56 47.06 Investment Income 104 175 71 68.27

~ 182 10.13 Other Income 1,859 1,979 120 6.46 23,277 268 1.15 SUB-TOTAL 23,769 23,545 (224) (0.94)

1,186 (8) (0.67) Shared Ride Program 1,283 1,178 (105) (8.18) 24,463 260 1.06 TOTAL REVENUE AVAILABLE FOR OPERATIONS 25,052 24,723 (329) (1.31)

OPERATING EXPENSES 53,734 (4,540) (8.45) Labor & Fringe Benefits 57,460 58,274 (814) (1.42) 14,785 3,377 22.84 Material & Services 12,269 11,408 861 7.02

1, 741 62 3.56 Injuries & Damages 1,679 1,679 1,022 (45) (4.40) Propulsion Power 1,073 1,067 6 0.56

217 (156) (71.89) Fixed Rent 300 373 (73) (24.33) 1,311 (156) (11.90) Fuel 1,713 1,467 246 14.36

~ (18) (1.55) Depreciation 1,227 1,180 47 3.83 73,972 (1,476) (2.00) TOT AL OPERA TING EXPENSES 75,721 75,448 273 0.36

(49,509) (1,216) (2.46) DEFICIT BEFORE SUBSIDIES (50,669) (50,725) (56) (0.11)

OPERATING SUBSIDIES 2,189 (89) (4.07) Federal 2, 151 2,100 (51) (2.37)

40,214 (1,061) (2.64) State 40, 115 39,153 (962) (2.40) 6,032 (157) (2.60) Local 6,018 5,875 (143) (2.38) 2,414 291 12.05 Lease Cost/Debt Service 2,283 2,705 422 18.48

106 6 5.66 Other - Route Guarantees 102 112 10 9.80 50,955 (1,010) (1.98) TOTAL OPERATING SUBSIDIES 50,669 49,945 (724) (1.43)

1,446 (2,226) SURPLUS/(DEFICIT) AFJER SUBSIDIES - (780) (780)

(88) 272 Unrealized Investment Gain/(Loss) 184 184

$ 1,358 $ (1,954) SURPLUS/(DEFICIT) After Investment Gain/(Loss) =

$ - $ (596) $ (596)

Page 2.2 1/14/2019

LAST YEAR AMOUNT

$ 139,113

708 10,497

150,318

8,528 158,846

340,753 74,135

11,444

5,492 1,701 9,208 6,941

449,674

(290,828)

13,309 232,800

34,920

14,208

638

295,875

5,047

(3242_

$ 4,723

Page 2.3 1/14/2019

$

$

THIS YEAR ACTUAL BETTER (WORSE) LAST YEAR

AMOUNT %

1,958 1.41

230 32.49 1,591 15.16 3,779 2.51 (657) (7.70)

3,122 1.97

26 0.01

53 0.07

532 4.65

(58) (1.06) (200) (11.76)

(1,526) (16.57)

(141) (2.03)

(1,3142_ (0.29)

1,808 0.62

(928) (6.97) (1,988) (0.85)

(298) (0.85)

(299) (2.10)

7 1.10

(3,5062_ (1. 18)

(1,698) 33.64

349

(1,349)


CITY TRANSIT DIVISION DETAIL INCOME STATEMENT

SIX MONTHS ENDED DECEMBER 29. 2018

(THOUSANDS)

THIS YEAR THIS YEAR ACTUAL

BUDGET ACTUAL BETTER (WORSE) BUDGET

AMOUNT AMOUNT AMOUNT %

OPERATING REVENUES

Passenger Revenue $ 141,655 $ 141,071 $ (584) (0.41)

Investment Income 664 938 274 41.27

Other Income 11,002 12,088 1,086 9.87

SUB-TOTAL 153,321 154,097 776 0.51

Shared Ride Program 8,340 7,871 (469) (5.62)

TOTAL REVENUE AVAILABLE FOR OPERATIONS 161,661 161,968 307 0.19

OPERATING EXPENSES

Labor & Fringe Benefits 351,796 340,727 11,069 3.15

Material & Services 73,077 74,082 (1,005) (1.38)

Injuries & Damages 10,912 10,912

Propulsion Power 5,649 5,550 99 1.75

Fixed Rent 1,743 1,901 (158) (9.06)

Fuel 11,035 10,734 301 2.73

Depreciation 7,370 7,082 288 3.91

TOTAL OPERATING EXPENSES 461,582 450,988 10,594 2.30

DEFICIT BEFORE SUBSIDIES (299,921) (289,020) 10,901 3.63

OPERATING SUBSIDIES

Federal 12,730 12,381 (349) (2.74)

State 237,471 230,812 (6,659) (2.80)

Local 35,621 34,622 (999) (2.80)

Lease Cost/Debt Service 13,487 13,909 422 3.13

Other - Route Guarantees 612 645 33 5.39

TOTAL OPERATING SUBSIDIES 299,921 292,369 (7,552) (2.52)

SURPLUS/(DEFICIT) AFTER SUBSIDIES 3,349 3,349

Unrealized Investment Gain/(Loss) 25 25

SURPLUS/(DEFICIT) After Investment Gain/(Loss) $ $ 3,374 $ 3,374


GROUP 3 - VICTORY DIVISION


BUDGET

AMOUNT

$

$

1,848

205

-2,053

8, 110 --(6,057)

6,057

907

977

Page 3.1 1/14/2019

SOUTHEASTERN PENNSYLVANIA TRANSPORTATION AUTHORITY VICTORY DIVISION

COMPARATIVE STATEMENT OF INCOME PERIOD ENDED DECEMBER 29. 2018

(THOUSANDS)


THIS YEAR LAST YEAR ---

ACTUAL ACTUAL

BETTER/ BETTER/

ACTUAL (WORSE) ACTUAL (WORSE) BUDGET

AMOUNT BUDGET% AMOUNT LAST YEAR% AMOUNT

OPERATING REVENUES

$ 1,919 3.84 $ 1,862 3.06 Passenger Revenue $ 12,219

230 12.20 220 4.55 Other Operating Revenue 1,242

2,149 4.68 2,082 3.22 TOTAL REVENUE AVAILABLE FOR OPERATIONS 13,461

8,743 (7.81) 7,577 (15.39) OPERATING EXPENSES 49,387

(6,594) (8.87) (5,495) (20.00) DEFICIT BEFORE SUBSIDIES (35,926)

6,453 6.54 5,672 13.77 OPERATING SUBSIDIES 35,926 --

(141) 177 SURPLUS/(DEFICIT) AFTER SUBSIDIES

12 (5) Unrealized Investment Gain/(Loss) -

$ (129) $ 172 SURPLUS/(DEFICIT) AFTER INVESTMENT GAIN/(LOSS) $ -

891 (1.76) 882 1.02 TOTAL VEHICLE MILES 5,802

972 (0.51) 958 1.46 REVENUE PASSENGER JOURNEYS 6,505


THIS YEAR LAST YEAR

ACTUAL ACTUAL

BETTER/ BETTER/


AMOUNT BUDGET% AMOUNT LAST YEAR% -

$ 12,663 3.63 $ 12,326 2.73

1,476 18.84 1, 154 27.90

14,139 5.04 13,480 4.89

50,454 (2.16) 48,851 (3.28)

(36,315) (1.08) (35,371) (2.67)

36,715 2.20 36,019 1.93

400 648

1 (18)

$ 401 $ 630

5,712 (1.55) 5,757 (0.78)

6,527 0.34 6,608 (1.23)

LAST YEAR AMOUNT

$ 1,862

$

7 213

2,082

5,777 1,346

82 119

13

223 17 --

7,577

(5,495)

250 4,704

705

13

5,672

177 -

(5)

172

Page 3.2 1/14/2019

$

$

THIS YEAR ACTUAL

BETTER (WORSE) LAST YEAR

AMOUNT %

57 3.06

3 42.86

7 3.29

67 3.22

(1,052) (18.21)

(79) (5.87)

3 2.52 (11) (84.62)

(28) (12.56)

1 5.88 (1,166) (15.39)

(1,099) (20.00)

30 12.00

642 13.65

97 13.76

12 92.31

781 13.77

(318) -

17

(301)



ONE MONTH ENDED DECEMBER 29. 2018

(THOUSANDS)




OPERATING REVENUES Passenger Revenue $ 1,848 $ 1,919 $ 71 3.84

Investment Income 5 10 5

Other Income 200 220 20 10.00


OPERATING EXPENSES

Labor & Fringe Benefits 6,067 6,829 (762) (12.56)

Material & Services 1,535 1,425 110 7.17

Injuries & Damages 82 82 Propulsion Power 116 116 Fixed Rent 15 24 (9) (60.00)

Fuel 276 251 25 9.06

Depreciation 19 16 3 15.79

TOTAL OPERATING EXPENSES 8,110 8,743 (633) (7.81)

DEFICIT BEFORE SUBSIDIES (6,057) (6,594) (537) (8.87)

OPERATING SUBSIDIES Federal 263 280 17 6.46 State 5,029 5,346 317 6.30

Local 754 802 48 6.37 Lease Cost/Debt Service 11 25 14

Other - Route Guarantees TOTAL OPERATING SUBSIDIES 6,057 6,453 396 6.54

SURPLUS/(DEFICIT) AFTER SUBSIDIES (141) (141)

Unrealized Investment Gain/(Loss) - 12 12

SURPLUS/(DEFICIT) AFTER INVESTMENT GAIN/(LOSS) $ $ (129) $ (129)

$

$

LAST YEAR AMOUNT

12,326 38

~ 13,480

36,622 9,377

539 557

80 1,572

104 48,851

(35,371)

1,582 29,879

4,482 76

36,019

648

(18)

630

Page 3.3 1/14/2019

$

$


AMOUNT %

337 2.73 9 23.68

313 28.05 659 4.89

(1,153) (3.15) (205) (2.19)

5 0.93 (18) (3.23) (19) (23.75)

(212) (13.49) (1) (0.96)

(1,603) (3.282.

(944) (2.67)

13 0.82 591 1.98

89 1.99 3 3.95

0.00 696 1.93

(248) 38.27

19

(229)


DETAIL INCOME STATEMENT SIX MONTHS ENDED DECEMBER 29, 2018

(THOUSANDS)




OPERATING REVENUES Passenger Revenue $ 12,219 $ 12,663 $ 444 3.63 Investment Income 32 47 15 46.88

Other Income 1,210 1,429 219 18.10

TOTAL REVENUE AVAILABLE FOR OPERATIONS ~461 14, 139 678 5.04

OPERATING EXPENSES Labor & Fringe Benefits 36,400 37,775 (1,375) (3.78)


Injuries & Damages 534 534 Propulsion Power 576 575 1 0.17

Fixed Rent 87 99 (12) (13.79)

Fuel 1,785 1,784 1 0.06 Depreciation 111 105 6 5.41

TOTAL OPERATING EXPENSES 49,387 50,454 (1,067) (2.16)

DEFICIT BEFORE SUBSIDIES (35,926) _J36,315) (389) (1.08)

OPERATING SUBSIDIES Federal 1,561 1,595 34 2.18

State 29,826 30,470 644 2.16 Local 4,474 4,571 97 2.17

Lease Cost/Debt Service 65 79 14 21.54 Other - Route Guarantees 0.00

TOTAL OPERATING SUBSIDIES 35,926 36,715 789 2.20

SURPLUS/(DEFICIT) AFTER SUBSIDIES - 400 400


SURPLUS/(DEFICID AFTER INVESTMENT GAIN/(LOSS) $ - $ 401 $ 401


GROUP 4 - FRONTIER DIVISION

(4.1) Comparative Statement oflncome ( 4.2) Detail Income Statement - (One Month) ( 4.3) Detail Income Statement - (YTD)

BUDGET

AMOUNT

$

$

--

481

65

546

2,777 --(2,231)

2,231

419

234

Page 4.1 1/14/2019

SOUTHEASTERN PENNSYLVANIA TRANSPORTATION AUTHORITY FRONTIER DIVISION

COMPARATIVE STATEMENT OF INCOME PERIOD ENDED DECEMBER 29, 2018

(THOUSANDS)


THIS YEAR LAST YEAR

ACTUAL ACTUAL

BETTER/ BETTER/



OPERATING REVENUES

$ 494 2.70 $ 384 28.65 Passenger Revenue $ 3,300

54 (16.92) 55 (1.82) Other Operating Revenue 382

548 0.37 439 24.83 TOTAL REVENUE AVAILABLE FOR OPERATIONS 3,682



2,243 0.54 2,312 (2.98) OPERATING SUBSIDIES 13,597 -

(57) 68 SURPLUS/(DEFICIT) AFTER SUBSIDIES -

4 (1) Unrealized Investment Gain/(Loss)

$ (53) $ 67 SURPLUS/(DEFICIT) AFTER INVESTMENT GAIN/(LOSS) $ -

427 1.91 421 1.43 TOTAL VEHICLE MILES 2,727

243 3.85 202 20.30 REVENUE PASSENGER JOURNEYS 1,603


THIS YEAR LAST YEAR

ACTUAL ACTUAL

BETTER/ BETTER/


AMOUNT BUDGET% AMOUNT LAST YEAR%

$ 3,311 0.33 $ 3,122 6.05

376 (1.57) 352 6.82

3,687 0.14 3,474 6.13

17,521 (1.40) 17,031 (2.88)

(13,834) (1.74) (13,557) (2.04)

13,982 2.83 13,799 1.33

148 242

1 (4)

$ 149 $ 238

2,781 1.98 2,779 0.07

1,675 4.49 1,607 4.23

LAST YEAR

AMOUNT

$ 384

2

53

439

2,175

318

40

4

142

4 --2,683

(2,244)

100

1,875

282

3

52

2,312

68

~

$ 67

Page 4.2 1/14/2019

$

$

THIS YEAR ACTUAL


AMOUNT %

110 28.65

2

(3) (5.66)

109 24.83

(147) (6.76)

21 6.60

8 20.00

(4)

(43) (30.28)

(165) (6.15)

(56) (2.50)

(5) (5.00)

(61) (3.25)

(10) (3.55)

5

2 3.85

(69) (2.98l_

(125)

5

(120)


FRONTIER DIVISION



(THOUSANDS)




OPERATING REVENUES

Passenger Revenue $ 481 $ 494 $ 13 2.70

Investment Income 1 4 3

Other Income 64 50 (14) (21.88)

TOTAL REVENUE AVAILABLE FOR OPERATIONS 546 548 2 0.37

OPERATING EXPENSES


Material & Services 357 297 60 16.81

Injuries & Damages 32 32

Fixed Rent 5 8 (3) (60.00)

Fuel 190 185 5 2.63

Depreciation 4 4



OPERATING SUBSIDIES

Federal 94 95 1 1.06

State 1,808 1,814 6 0.33

Local 271 272 1 0.37

Lease Cost/Debt Service 5 8 3 60.00



SURPLUS/(DEFICIT) AFTER SUBSIDIES - (57) (57)


SURPLUS/(DEFICIT) AFTER INVESTMENT GAIN/(LOSS $ - $ (53) $ (53)

LAST YEAR

AMOUNT

$ 3,122

11

341

3,474

13,717

2,021

263

27

979

24

17,031

(13,557)

603 11, 184

1,678

19

315

13,799

242

(4)

$ 238

Page 4.3 1/14/2019

$

$

THIS YEAR ACTUAL


AMOUNT %

189 6.05 4 36.36

20 5.87

213 6.13

(233) (1.70) (67) (3.32)

55 20.91

(5) (18.52)

(238) (24.31) (2) (8.33)

(490) (2.88)

(277) (2.04)

(9) (1.49) 160 1.43

24 1.43

3 15.79

5 1.59

183 1.33

(94) 38.84

5

(89)

SOUTHEASTERN PENNSYLVANIA TRANSPORTATION AUTHORITY FRONTIER DIVISION


SIX MONTHS ENDED DECEMBER 29. 2018

(THOUSANDS)




OPERATING REVENUES

Passenger Revenue $ 3,300 $ 3,311 $ 11 0.33


Other Income 374 361 (13) (3.48)


OPERATING EXPENSES



Injuries & Damages 208 208

Fixed Rent 30 32 (2) (6.67)

Fuel 1,227 1,217 10 0.81

Depreciation 24 26 (2) (8.33)



OPERATING SUBSIDIES

Federal 577 594 17 2.95 State 11,029 11,344 315 2.86 Local 1,654 1,702 48 2.90 Lease CosVDebt Service 19 22 3 15.79



SURPLUS/(DEFICIT) AFTER SUBSIDIES 148 148


SURPLUS/(DEFICIT) AFTER INVESTMENT GAIN/(LOSS $ $ 149 $ 149


GROUP 5 - REGIONAL RAIL DIVISION


BUDGET

AMOUNT --

$ 11,477

$

1,126

--12,603

29,019 ---(16,416)

16,416

--

1,637

2,652

Page 5.1 1/14/2019

SOUTHEASTERN PENNSYLVANIA TRANSPORTATION AUTHORITY REGIONAL RAIL DIVISION

COMPARATIVE STATEMENT OF INCOME PERIOD ENDED DECEMBER 29. 2018

(THOUSANDS)


THIS YEAR LAST YEAR

ACTUAL ACTUAL

BETTER/ BETTER/



OPERATING REVENUES

$ 10,996 (4.19) $ 11,091 (0.86) Passenger Revenue $ 73,409

1,071 (4.88) 1, 111 (3.60) Other Operating Revenue 7,070

12,067 (4.25) 12,202 (1.11) TOTAL REVENUE AVAILABLE FOR OPERATIONS 80,479



17,515 6.69 16,931 3.45 OPERATING SUBSIDIES 95,795

16 356 SURPLUS/(DEFICIT) AFTER SUBSIDIES -

136 (152) Unrealized Investment Gain/(Loss)

$ 152 $ 204 SURPLUS/(DEFICIT) AFTER INVESTMENT GAIN/(LOSS) $

1,613 (1.47) 1,624 (0.68) TOTAL VEHICLE MILES 10,775

2,556 (3.62) 2,541 0.59 REVENUE PASSENGER JOURNEYS 17,376


THIS YEAR LAST YEAR

ACTUAL ACTUAL

BETTER/ BETTER/


AMOUNT BUDGET% AMOUNT LAST YEAR% ---

$ 70,033 (4.60) $ 71,205 (1.65)

7,019 (0.72) 7,342 (4.40)

77,052 (4.26) 78,547 (1.90)

178,934 (1.51) 179,819 0.49

(101,882) (6.35) (101,272) (0.60)

102,979 7.50 102,541 0.43

1,097 1,269

103 (242)

--$ 1,200 $ 1,027

10,499 (2.56) 10,652 (1.44)

16,797 (3.33) 16,901 (0.62)

$

$

LAST YEAR

AMOUNT

11,091

89 1,022

12,202

16,076

10,031

450

1,462

92

31

635 28,777 -

(16,575)

514 9,656

1,448

5,188

125 16,931

356

(152)

204

Page 5.2 1/14/2019

$

$


AMOUNT %

(95) (0.86)

17 19. 10 (57) (5.58)

(135) (1. 11)

(1,892) (11.77)

978 9.75 28 6.22

(83) (5.68) (30) (32.61)

16 51.61 194 30.55

(789) (2.74)

(924) (5.57)

11 2.14 384 3.98

57 3.94 116 2.24

16 12.80 584 3.45

(340) 95.51

288

(52)

SOUTHEASTERN PENNSYLVANIA TRANSPORTATION AUTHORITY REGIONAL RAIL DIVISION



(THOUSANDS)




OPERATING REVENUES

Passenger Revenue $ 11,477 $ 10,996 $ (481) (4.19)


Other Income 1,035 965 (70) (6.76)

TOTAL REVENUE AVAILABLE FOR OPERATIONS 12,603 12,067 (536) (4.25)

OPERATING EXPENSES

Labor & Fringe Benefits 17,444 17,968 (524) (3.00) Material & Services 9,038 9,053 (15) (0.17) Injuries & Damages 422 422 Propulsion Power 1,561 1,545 16 1.02 Fixed Rent 100 122 (22) (22.00) Fuel 49 15 34 69.39 Depreciation 405 441 (36) (8.89)


DEFICIT BEFORE SUBSIDIES (16,416) (17,499) (1,083) (6.60)

OPERATING SUBSIDIES

Federal 492 525 33 6.71 State 9,401 10,040 639 6.80 Local 1,411 1,505 94 6.66 Lease CosVDebt Service 4,970 5,304 334 6.72

Other - Route Guarantees 142 141 (1) (0.70) TOTAL OPERATING SUBSIDIES 16,416 17,515 1,099 6.69

SURPLUS/(DEFICIT) AFTER SUBSIDIES - 16 16


SURPLUS/(DEFICIT) AFTER INVESTMENT GAIN/(LOSS) $ $ 152 $ 152

$

$

LAST YEAR

AMOUNT

71,205

697

6,645

78,547

109,232

54,534

2,799

8,802

626

223

3,603

179,819

(101,272)

4,001

58,530

8,779

30,568

663

102,541

1,269

(242)

1,027

Page 5.3 1/14/2019

$

$

THIS YEAR ACTUAL


AMOUNT %

(1, 172) (1.65)

118 16.93

(441) (6.64)

(1,4952_ (1.90)

(12) (0.01)

44 0.08

193 6.90

(73) (0.83)

(28) (4.47)

(1) (0.45)

762 21.15

885 0.49

(610) (0.60)

(849) (21.22) 1,714 2.93

257 2.93

(871) (2.85)

187 28.21

438 0.43

(172) 13.55

345

173


REGIONAL RAIL DIVISION

DETAIL INCOME STATEMENT SIX MONTHS ENDED DECEMBER 29, 2018

(THOUSANDS)




OPERATING REVENUES

Passenger Revenue $ 73,409 $ 70,033 $ (3,376) (4.60)


Other Income 6,398 6,204 (194) (3.03)

TOTAL REVENUE AVAILABLE FOR OPERATIONS 80,479 77,052 (3,427) (4.26)

OPERATING EXPENSES

Labor & Fringe Benefits 107,907 109,244 (1,337) (1.24)

Material & Services 53,146 54,490 (1,344) (2.53)

Injuries & Damages 2,606 2,606

Propulsion Power 9,286 8,875 411 4.43

Fixed Rent 595 654 (59) (9.92)

Fuel 318 224 94 29.56

Depreciation 2,416 2,841 (425) (17.59)

TOTAL OPERATING EXPENSES 176,274 178,934 (2,660) (1.51)

DEFICIT BEFORE SUBSIDIES (95,795) (101,882) (6,087) (6.35)

OPERATING SUBSIDIES

Federal 2,854 3,152 298 10.44

State 54,544 60,244 5,700 10.45

Local 8,182 9,036 854 10.44

Lease CosVDebt Service 29,363 29,697 334 1.14

Other - Route Guarantees 852 850 (2) (0.23)

TOTAL OPERATING SUBSIDIES 95,795 102,979 7,184 7.50

SURPLUS/(DEFICIT) AFTER SUBSIDIES 1,097 1,097


SURPLUS/(DEFICIT) AFTER INVESTMENT GAIN/(LOSS) $ - $ 1,200 $ 1,200

EXHIBIT "B"

minutes of regular board meeting of southeastern ... · certificates and full compliance...

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