1. Review of Transportation Policies and Costs Fiscal Committee December 2, 2013

2. Transportation History 2 This presentation provides additional information to the Fiscal Committee relative to transportation history, costs, and policies. Transportation Rate Increase History The last transportation rate increase was in May 2006 when the one way rate increased from $5 to $6 and the round trip rate increased from $7.50 to $9.00. In June 2012 the Board voted as follows: Subject to a supplemental budget appropriation the Board approves an increased transportation provider reimbursement rate of $16.51 for round trip transportation and $11.11 for one-way transportation for all infants, toddlers, and preschool age children with the requirement that, if the recommended reimbursement rate increase is funded, entities that receive transportation payment from EEC for infants, toddlers, and preschool age children must dedicate one adult monitor on all vehicles. The transportation rate of $9.00 per day round trip and $6.00 per day for one way transportation will remain in effect for all transportation providers that transport school age children.

3. Transportation: Recognition of Costs 3 November 2012: FY14 Aspirational Budget The Board votes to recommend to the Governor a funding request of $17,586,713 for the FY14 Aspirational Budget to increase the rate paid for transportation to support improvements in the system and the addition of one adult monitor on all vehicles carrying infants, toddlers, and preschool children. The request includes an increase in the add-on rate from $17.22 to $24.73 for infants, toddler, and preschool children. Transportation for school age children would remain at $17.22. November 2013: FY15 Aspirational Budget The Board votes (again) to recommend to the Governor a funding request of $17,586,713 for the FY15 Aspirational Budget to increase the rate paid for transportation to support improvements in the system and the addition of one adult monitor on all vehicles carrying infants, toddlers, and preschool children.

4. Transportation: Service to be Provided 4 What does the Rate of $16.51 for Round Trip Transportation Provide? The rate of $16.51 per round trip would make providers whole for the staff time already directed to satisfying the following recommendations: Management Responsibility Parent Notification Passenger Logs Secondary Vehicle Inspection AND places an adult monitor on vehicles based on the number of children, ages, and length of routes. Vehicle monitoring devices will not be required.

5. Transportation Costs An increase in the transportation rate would support the following expenses at roughly the percentages shown. Driver Expenses: 34.7% Monitor Expenses: 23.1% Gas and Maintenance: 24.9% Note that the sum for driver, monitor, and gas and maintenance expense is 82.7% of the total Equipment: 3.4% Insurance: 3.7% Training:.9% Contract Services: 3.1% Other:.2% Admin Expenses: 5.8% 5

6. Transportation Expenses TRANSPORTATION: Current Estimated Cost $18,034,933 6 The FY13 average daily cost for Income Eligible and DTA is 90% to 95% of the round trip transportation rate of $9.00. These percentages were applied to the proposed round trip rate of $16.51 to calculate the cost estimate for comparison purposes. The estimates for School Age children remains at the current rate of $9.00 for IE and DTA and included in the add on rate for school age children. The estimated increase in cost could fluctuate due to changes in caseload and children eligible for transportation.

7. Transportation: Monitoring Responsibilities 7 The following represent the areas of transportation review, EEC unit responsibility, and if the SAO audit has noted a concern. Area of Review: Transportation Subcontractor Records EEC Responsibility: Contracts SAO Audit Observation: Some providers do not maintain records for subcontractor drivers. Contract providers think it is the subcontractor's responsibility to maintain these records. Area of Review: Subcontractor Drive CORI Checks EEC Responsibility: Licensing SAO Audit Observation: Some contract providers think it would be redundant to do CORI checks themselves. Some providers are running CORI checks on subs and some are not. Area of Review: Transportation Logs EEC Responsibility: Licensing, Audits, Contracts SAO Audit Observation: There is not as much emphasis placed on transportation logs as there should be. Some contract providers receive transportation logs from their transportation subcontractor, and some do not. It is not clear how long transportation logs should be kept. The policy doesn’t address length of time to maintain the log or where it should be stored. In December 2011 EEC required that transportation logs be signed to prove that a van is empty. There is no consistency among providers.

8. Transportation: Monitoring Responsibilities 8 Area of Review: Vehicle Inspections EEC Responsibility: Licensing SAO Audit Observation: 7D records are hard to come by. (The auditors did not that 7D records are on the RMV website and if you type in the VIN, you can find it.) Inspections are not performed. In particular, for buses, there are no records and no copies. Area of Review: First Aid/ CPR EEC Responsibility: Licensing SAO Audit Observation: Our policy is not clear relative to how frequently CPR training must be done for drivers. Area of Review: PQR Registration EEC Responsibility: Contracts, Audit response to incident SAO Audit Observation: All transportation employees are not registered in PQR. Area of Review: Driver Safety Training EEC Responsibility: Audit Response to Incident SAO Audit Observation: There is a Spanish version of one presentation, but there is no audio.

9. Transportation: Monitoring Responsibilities 9 Area of Review: Insurance Coverage EEC Responsibility: Licensing SAO Audit Observation: 606 CMR specifies the minimum levels of insurance coverage that is required. It looks like most people don't have the minimum level of insurance, but the umbrella or blanket policy of $1M seems to address this. (The auditors are going to continue looking at this.) Sometimes files were incomplete. Area of Review: Subcontractors No Longer in Business. EEC Responsibility: Unclear SAO Audit Observation: Contract providers are unsure if they would be able to secure records from these transportation subcontractor companies that are defunct. There should be a policy to have records on an ongoing basis. Area of Review: CDL Licenses EEC Responsibility: Licensing SAO Audit Observation: Are CDL licenses good for driving a bus? Area of Review: Transportation Plan EEC Responsibility: Licensing, Audits, Contracts SAO Audit Observation: NA

10. Transportation: Monitoring Responsibilities 10 Area of Review: Transportation Plan for Child EEC Responsibility: Licensing, Audits SAO Audit Observation: NA Area of Review: Driver Assigned to Specific Routes EEC Responsibility: Licensing SAO Audit Observation: NA Area of Review: No Smoking in Vehicle EEC Responsibility: Licensing SAO Audit Observation: NA Area of Review: Car Restraints / Infant Seats EEC Responsibility: Licensing SAO Audit Observation: NA Area of Review: Attendant Present for 8 or More EEC Responsibility: Licensing SAO Audit Observation: NA

11. Transportation: Monitoring Responsibilities 11 Area of Review: Airbags EEC Responsibility: Licensing SAO Audit Observation: NA Area of Review: Sharp or Dangerous Objects EEC Responsibility: Licensing SAO Audit Observation: NA Area of Review: Release of Children to Authorized Person EEC Responsibility: Licensing SAO Audit Observation: NA Area of Review: Ability to Make Emergency Phone Calls EEC Responsibility: Licensing SAO Audit Observation: NA Area of Review: Transportation Incidents EEC Responsibility: Licensing, Audits SAO Audit Observation: NA

12. Transportation: Monitoring Responsibilities 12 Area of Review: Supervision of Drivers and Monitors EEC Responsibility: Contracts, ?? SAO Audit Observation: NA Area of Review: Notice of Substantial Change in Services EEC Responsibility: Contracts SAO Audit Observation: NA Area of Review: Policy for Notifying Parents EEC Responsibility: Licensing, Contracts, Audits SAO Audit Observation: NA Area of Review: Conducting Post Trip Checks EEC Responsibility: Licensing, Contracts, Audits SAO Audit Observation: NA Area of Review: Child Health and Safety EEC Responsibility: Licensing, Contracts SAO Audit Observation: NA

13. Transportation: Service Scenarios 13

14. Transportation: Next Steps Immediate Next Steps 14 Hire a Transportation Monitor: Resumes are being reviewed. Prepare Corrective Action Plan for Auditors: Based on the initial “issues” (not yet “findings”), prepare a response for each area of review. Review Regulations and Policies: Already had an internal meeting. Legal will be reviewing. Uniform Application: Ensure that new policies include and address the various service scenarios. Create a Monitoring Package: Implement a monitoring package similar to that used in RTTT which allows programs to know what will be monitored and allows EEC to say in an organized way a result of the on-site and file review. Long Term Steps Transportation as a Service: Are we committed to providing transportation as a service? Bid for Transportation Service: Do we want to consider a statewide bid for the delivery of transportation for children in care?