Current Financial Position Current Operations Service Statistics/Trends Funding Statistics/Trends Other Information/Assumptions Capital Status Review Last update: January 27, 2012 Transportation Status - FY

Transportation - Current Financial Position: Reserves/Retained Earnings SourceBalance Lottery MATP MH/MR Area Agency on Aging Other State $ Other Local $ Total Reserves (Deficit)$ (862,198) 2

Transportation - Current Financial Position: Level of Short-Term Debt/Loans—Identify each line of credit (excludes long-term bond financing) Name of Financial Institution Amount of Available Credit Interest Rate Current Credit in Use Woodlands Bank$06.5%$1,065,000 3

Transportation - Current Financial Position: Accounts Payable – Past due 90 days and over Accounts Receivable – Past due 90 days and over VendorAmount Past DueEstimated Pay Date N/A Program/Agency Amount Past Due Date Requisitioned Estimated Pay Date N/A 4

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

Transportation - Staffing Level/Org Chart: 6

Transportation - Labor Provisions: No Union Contract DriversCurrent Starting wage$8.47 (non-CDL), $10.85 (CDL)$8.89 (non-CDL), $11.39 (CDL) Top wage$17.69 (27 year employee)$18.57 Average wage$11.38$11.95 Job Classification Number- Full TimeNumber-Part Time Drivers non-CDL and 8 CDL qualified0 Mechanics00 Dispatchers1 (others cross-trained)0 Clerical Schedulers, 4 Clerks, and 1 Customer Services Supervisor 2 – Senior Community Service Employment Program (vacant) and AmeriCorp member Other Positions1 Fleet Manager (vacant)0 7

Transportation - Important Labor Provisions: Use of part-time employees Senior Community Service Employment Program (Title V) (currently vacant) and, AmeriCorp Member Number/percent of “split shift” drivers During 24/7/365 coverage, on occasion would split shift a Driver for very late in the evening or early in the morning trip. Not needed so far with new operating hours Overtime During the bi-week pay period of 12/31/11 to 1/13/12 a total of hours of overtime was paid out. During this time period there were 3 Drivers out sick/injured Outsourcing Most vehicle maintenance done through one vendor. At no cost, a paved and lighted parking lot at the garage is used for all vehicles and it is conveniently located to access both counties 8

Transportation - Healthcare: Describe any proposed changes and the estimated financial impacts: N/A at this point Non-Union Basic Coverage Current $688. monthly premium –Doctor Visits-Preventative Services – Emergency Services-Inpatient/Outpatient-Prescription Drugs FY $791.(estimated 15% increase) Employee Contributions Current $44-$114 per month FY $51-$131 per month Co-Payment Current $15/$30 Primary/Specialist- $75.Emergency Room/Outpatient Imaging. Prescription-Retail Tier $0/$20/$40/$60 FY Unknown at this time 9

Transportation - Pension: Non-Union Employer Contributions Current-403b Plan5% of Annual Pay FY b Plan3% to 5% of Annual Pay Minimum Age to Qualify for Retirement CurrentN/A FY N/A Minimum Number of Years to Qualify for Retirement CurrentN/A FY N/A Minimum Number of Years to be Vested CurrentN/A FY N/A 10

Transportation - Pension: Describe any proposed changes and the estimated financial impacts - Proposed change on Employee Contribution from 5% with Employer Match of 5% to Employee Contribution can be 3% to 5% with Employer Match from 3% to 5% based on Employee election-Employer Match not to exceed 5% Provide a status of the degree to which the pension funding is funded. If not fully funded please provide your strategy to fully fund pension – N/A 11

Transportation - Fuel: Current Cost per Gallon Contract rate or market rate? Market rate – Currently averaging approximately per gallon Projected Cost per Gallon and Basis for Projection Contract rate or market rate? Possibly contract rate at River Valley Transit (RVT) fueling station for at least some of agency vehicles Terms of contract: Unknown at this time – working with RVT on possibilities Other Would like to explore Compressed Natural Gas (CNG) vehicle purchase opportunities due to recent local CNG fueling station opening in Williamsport in

Transportation - Shared Ride Fares: Date of Last Fare Increase: May 1, 2011 Current - $16.60 per one-way trip throughout the bi-county area; between $37 and $61 to Geisinger Medical Center (GMC), Danville, PA Average fare : $17.55 (Taken from last sample week) Sponsorship arrangements – STEP, Area Agency on Aging and North Central Sight Services Planned Changes Date of planned increase – Unknown at this time Estimated average fare – Unknown at this time Sponsorship arrangements – additional MATP funding cuts? Describe Fare Policy 203 Shared-Ride is $2.50 customer co-pay per one-way trip STEP, Area Agency on Aging sponsors customers over the age of 60 for certain trip types (67% of the 15% co-pay (65 and over) or 95% for years of age) equates to an $.85 co- pay PwD/ADA customers are required to pay $4.00 for each on way trip MA customers are currently provided transportation at no charge. Effective April 1, 2012, MATP will reimburse STEP $2.00 less per trip with the assumption that customers will pay a $2.00 co-pay. If co-pay is not paid transportation is supposedly still required to be provided. GMC trips range from a $5.55 to $18.50 co-pay depending upon sponsorship and number of customers riding on that day 13

Transportation - Other Major Factors Producing Cost Increases Beyond Inflation: FactorsCurrent Amount Projected Future Amount Explanation Employee Recruitment and Retention Lost 7 Drivers and 1 Fleet Manager in 2011 = more cost for advertising, training, and overtime for Driver shortage ? Recruitment and retention have been extremely difficult for many reasons. Lately, the highly competitive nature of the Marsellus Shale gas industry has taken many Drivers away from STEP. Fuel Price Approximately per gallon ? Indicators point to possible increases beyond inflation. Healthcare Costs 30% increased cost to the agency each of the last three years 15% increase per year Huge increase in the cost to the agency over the last three years and the expectation for continued higher costs 14

Transportation - Cost Savings Initiatives: Initiative Current Cost Planned Action and Implementation Date Projected Savings Reduction in Service Level ? January 1, 2012 – Reduced service from 24/7/365 to Monday thru Friday, 6:00am to 6:00pm not including STEP observed holidays According to the consultant, a possible savings of over $75,000 per year Implementation of higher technology $175,000?Waiting for success of pilots? Daily monitoring of Driver hours worked ? On going – to best of ability, zero out hours at end of the week to minimize overtime FY along with reduction in service level and Driver attrition, a projected saving of over $200,

Transportation - Cost Savings Initiatives: 16 Initiative Current Cost Planned Action and Implementation Date Projected Savings Unfilled Vacancies? Several Driver and 1 Fleet Manager positions FY along with reduction in service level and Driver attrition, a projected saving of over $200,000. Bulk Fueling? Working with River Valley Transit to purchase gas there ? Compressed Natural Gas (CNG) Vehicles ? Would like to explore options to purchase CNG vehicles ? Less on-call coverage $10,400 per year New service level decreased need for around the clock on-call coverage $7,800 per year Others?

Transportation - Shared Ride Funding: FY FY FY FY FY Operating Expense $2,688,562$2,315,881$2,402,873$2,566,255$2,742,715 Passenger Revenue $276,031$264,597$239,460 Lottery$704,690$663,275$600,264 MATP$1,036,029$743,102$672,507$627,507 Other$595,099$472,686$419,780 Balance (Deficit)($76,713)($172,221)($470,862)($634,244)($810,704) 17

Transportation - Shared Ride Statistics/Trends: 18 Shared-RideFY FY FY FY FY Total Vehicle Miles1,850,0281,577,3681,427,518 Cost per Mile$1.45$1.47$1.68$1.79$1.92 Total Vehicle Hours37,97031,09028,137 Cost per Hour$70.80$74.49$85.40$91.20$97.47 Total Passenger Trips141,408115,000104,000 Cost per Trip$19.01$20.13$23.10$24.64$26.37 Revenue per Trip$17.76$18.64$18.58 Trips per Hour

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