SORTA BOARD OF TRUSTEES MEETING

TUESDAY, JUNE 18th, 2019 – 8:30 A.M SORTA/METRO BOARD ROOM 602 MAIN STREET, SUITE 1100 ,

General Items: Call to order Pledge of Allegiance Recite SORTA’s Vision and Mission Statement CEO STAR Award: Ted Meyer Hearings from citizens (3 minutes per person) Chairman Update

Action Items:

1. Approval of Board Minutes: May 21st, 2019

Finance Committee (Heidi Black)

Planning & Operations Committee (Mary Miller) 2. Proposed Motion: Adoption of SORTA Guiding Principles for the Restructuring of the Cincinnati Streetcar Operations and Maintenance Intergovernmental Agreement (OMIGA) (Paul Grether) 3. Proposed Resolution No. 2019-13: Approval of Amendment to the Amended and Restated Operations and Maintenance Intergovernmental Agreement with the City of Cincinnati Governing Operations and Maintenance of the Cincinnati Streetcar (Paul Grether)

Briefing Items:

4. Financial Reports for May 2019 (Michelle Jeng) 5. Metro on the Move Report (Darryl Haley)

Other Items: New Business

Executive Session: “Section 121.22(G)(3) Conferences with an attorney for the public body concerning disputes involving the public body that are the subject of pending or imminent court action.”

Adjournment

The next regular meeting of the SORTA Board of Trustees is scheduled for Tuesday, July 16th, 2019 6:00 P.M, the SORTA/Metro Board Room, 602 Main Street, Suite 1100, Cincinnati, Ohio

The SORTA Board of Trustees may go into Executive “Closed” Session under the Ohio Open Meetings Act: Section 121.22(G)(1) To consider appointment, employment, dismissal, discipline, promotion, demotion, or compensation of a public employee…; Section 121.22(G)(2) To consider the purchase of property for public purposes….; Section 121.22(G)(3) Conferences with an attorney for the public body concerning disputes involving the public body that are the subject of pending or imminent court action; Section 121.22(G)(4) Preparing for, conducting, or reviewing negotiations or bargaining sessions with public employees…, Section 121.22(G)(5) Matters required to be kept confidential by federal law or regulations or stat statues; Section 121.22(G)(6) Details relative to the security arrangements and emergency response protocols for a public body or a public office; Section 121.22(G)(8) To consider confidential information related to the marketing plans, specific business strategy, production techniques, trade secrets…

BOARD OF TRUSTEES SOUTHWEST OHIO REGIONAL TRANSIT AUTHORITY

MINUTES OF: Regular Meeting of the SORTA Board of Trustees

DATE: Tuesday, May 21st, 2019, 6:00 P.M. SORTA/ Metro 602 Main Street Cincinnati, OH 45202

BOARD MEMBERS Brendon Cull, Blake Ethridge, Allen Freeman, Robert Harris, Roderick Hinton, Kreg Keesee, PRESENT: Mary Miller, Gwen Robinson, and Kathleen Wyenandt

BOARD MEMBERS Heidi Black, Maurice Brown, Thaddeus Hoffmeister, and Pete McLinden ABSENT:

STAFF MEMBERS: Darryl Haley, Donna Adkins, Freddie Dukes, Dave Etienne, Dan Feldman, Patrick Giblin, Paul Grether, Adriene Hairston, Michelle Jeng, Brandy Jones, Caprice Jones, Maria Jones, Ted Meyer, Matt Mooreman, Matt Niehaus, John Ravasio, Cindy Resor, Shannel Satterfield , Khaled Shammout, and T.J Thorn

OTHERS: Kim Schaefer (VSSP), Troy Miller (ATU), Cam Hardy (BBC), Hannah Sparling (Cincinnati Enquirer), Taylor Liggings (Cincinnati Chamber), Andy Shank (BBC), Mark Samaan(BBC), Wade Johnson (Green Umbrella), Marilyn Wall (Sierra Club) and Chris Moran (LWV)

CALL TO ORDER

Mr. Keesee, SORTA Board Chair, called the meeting to order.

PLEDGE OF ALLEGIANCE

The Pledge of Allegiance was recited.

VISION AND MISSION

SORTA’s vision and mission statements were recited.

HEARINGS FROM CITIZENS

Andy Shenk: Mr. Shenk, from the BBC shared his doctor visit experience. He noticed that patients who drive their cars to the hospital receive parking passes and patients that ride the bus don’t receive any passes. Mr. Shenk requested SORTA partner with hospitals to give patients discounts passed for doctor visits.

Mark Samaan: Mr. Samaan, from the BBC shared the importance of replacing the bus system and improving the system overall. He requested the Board to finalize a levy campaign. Lastly, he discussed the how OTP could be improved to attract and obtain current riders; also to focus on heavy corridors.

Cam Hardy: Mr. Hardy mentioned the Better Bus Coalition has very exciting projects in the near future and will share the news with SORTA soon. He reiterated the importance of board attendance. Mr. Hardy also shared the City of Cincinnati Planning Committee approved bench signs.

Troy Miller: Mr. Miller, ATU President, spoke about the bus operator from Hillsborough Area Regional Transit Authority (HART) in Tampa, Florida who was fatally stabbed by a passenger on Saturday, May 18th. He explained that safety is a major issue and the ATU will continue working with SORTA leadership to improve bus operator and passenger safety.

CHAIRMAN UPDATE

Mr. Keesee provided brief public comment update from the April Board meeting. There was a moment of silence for ATU International President Larry Hanley passed away on Tuesday, May 7th and Mr. Thomas Dunn (46 yrs.) bus operator from Hillsborough Area Regional Transit Authority (HART) in Tampa, Florida was fatally stabbed by a passenger on Saturday, May 18th. He also provided an update regarding the RTC which is scheduled for completion by July 1st.

APPROVAL OF APRIL 2019 BOARD MEETING MINUTES

Ms. Robinson made a motion that the minutes of the April 16th meeting be approved as previously mailed and Ms. Miller seconded the motion. By voice vote, the Board approved the minutes.

SORTA Board of Trustees May 21st, 2019

FINANCE COMMITTEE

Mr. Hinton reported on the Finance Committee meeting that was held on May 14th and presented the following to the Board for approval:

Proposed Motion: Approval of Appointment of Secretary-Treasurer

Ms. Miller moved for adoption and Ms. Wyenandt seconded the motion. This motion approves appoint Darryl Haley as Secretary-Treasurer of the Southwest Ohio Regional Transit Authority Board effective immediately and authorize the purchase of a surety bond in the amount of $100,000. Mr. Haley will perform specific such as: fiscal officer and custodian of the Authority’s funds and records; serve as Secretary-Treasurer to the Board and attend all meetings of the Board and its committees; and, perform other duties as directed by the Board and its committees.

By voice vote, the Board approved the motion.

PLANNING AND OPERATIONS COMMITTEE

Mr. Cull reported on the Planning and Operations Committee that was held on May 14th and presented the following to the Board for approval:

Proposed Motion: Approval to Support the Grant Application by the City of Cincinnati for Trail Project Connecting the Wasson-Right-of-Way

Mr. Cull moved for adoption and Mr. Hinton seconded the motion. This motion approves supporting a prospective 2019 grant application by the City of Cincinnati for federal funding, through OKI by the City of Cincinnati in coordination with Green Umbrella for the construction of a trail connecting the Wasson Way multi-use trail with Uptown.

By voice vote, the Board approved the motion.

Proposed Resolution No. 2019-11: Approval of Advertising Agency Services

Ms. Robinson moved for adoption and Mr. Cull seconded the motion. This resolution approves a two (2) year contract, with a one (1) year option with Affirm Agency for advertising services on behalf of SORTA, at a cost not to exceed $615,000. Services to include planning, creative development and media buying and analysis related to SORTA’s efforts to promote ridership and market new services, products and amenities.

By roll call vote, the Board approved Resolution No. 2019-11.

Proposed Resolution No. 2019-12: Approval of Membership with NEORide

Mr. Harris moved for adoption and Ms. Miller seconded the motion. This resolution authorizes SORTA to enter into a membership with NEORide, an Ohio Council of Governments. This membership is required in order to take advantage of NEORide’s contract with Masabi & Transit to provide a regional trip planning and fare payment application; also to provide future opportunities for joint procurements and grant applications.

By roll call vote, the Board approved Resolution No. 2019-12.

BRIEFING ITEMS

MONTHLY FINANCIAL REPORT FOR APRIL 2019

Ms. Jeng presented the April 2019 financial reports. Total revenues were $8.0 million, which is unfavorable to budget by $22,000. Total expenses were $8.3 million, which is favorable to budget by $62,000 or 0.7%. The final result was a net favorable variance of $40,000 for the month. Fare revenue was favorable to budget by $25,000. Ms. Jeng then reviewed the contributing factors to these variances.

She also presented the Cincinnati Bell Connector financial report for April 2019. Total revenues were $271,288 which is unfavorable to budget by $71,512or 21%. Total expenses were $342,239 which is favorable to budget by $1,561or <1%. The end result is a net unfavorable variance of $69,951 for the month. Ms. Jeng then reviewed the contributing factors to these variances. The Board accepted the report as presented.

METRO ON THE MOVE

Mr. Haley highlighted the Maintenance Apprenticeship Program; this newly developed program is designed to train and develop future top technicians from within and the four 10-hour days trial program. He mentioned the RTC will reopen soon and board will receive a tour.

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SORTA Board of Trustees May 21st, 2019

NEW BUSINESS

ADJOURNMENT

The meeting adjourned at 7:00 P.M.

NEXT MEETING

The next regular meeting of the SORTA Board of Trustees is scheduled for Tuesday, June 18th, 2019 at 8:30 A.M., the SORTA/Metro Board Room, 602 Main Street, Suite 1200, Cincinnati, Ohio.

APPROVED: ATTESTED:

Kreg Keesee Darryl Haley Chair, SORTA Board CEO/General Manager/Secretary-Treasurer

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CEO Star Award Presentation Ted Meyer, Manager Service Planning & Scheduling

For 37 years, Ted has been the guiding force behind some of Metro’s most successful service initiatives.

Thank you! Attachments: Action Item

BOARD OF TRUSTEES SOUTHWEST OHIO REGIONAL TRANSIT AUTHORITY MOTION

ADOPTION OF SORTA GUIDING PRINCIPLES FOR THE RESTRUCTURING OF THE CINCINNATI STREETCAR OPERATION AND MAINTENANCE INTERGOVERNMENT AGREEMENT (OMIGA)

The Southwest Ohio Regional Transit Authority establishes the following guiding principles for the restructuring of the 2015 Streetcar Operations and Maintenance Intergovernmental Agreement (OMIGA) to remove SORTA from primary responsibilities for the Cincinnati Streetcar:

1. SORTA shall have no direct financial involvement in or liabilities for the Cincinnati Streetcar; 2. SORTA staff shall have no ongoing or regular responsibilities or involvement in the Cincinnati Streetcar.

These guiding principles will be used to renegotiate the OMIGA with the City of Cincinnati.

Attachments: N/A

June 2019

ACTION ITEM – ADOPTION OF SORTA GUIDING PRINCIPLES FOR THE RESTRUCTURING OF THE CINCINNATI STREETCAR OMIGA

STRATEGIC PLAN GOAL / OBJECTIVE

• Strategic Partnering • Cultural Alignment

RECOMMENDATION

Approval of a motion to establish guiding principles for the restructuring of the Cincinnati Streetcar the objective of which is the transition of all primary responsibilities to the City of Cincinnati. These guiding principles will be used by SORTA staff and counsel to negotiate the transition with the City of Cincinnati, the Federal Transit Administration (FTA) and the Ohio Department of Transportation State Safety Oversight (ODOT/SSO).

FINANCIAL CONSIDERATIONS

• Under the 2015 Cincinnati Streetcar Operations and Maintenance Intergovernmental Agreement (OMIGA) SORTA has various primary responsibilities for the Cincinnati Streetcar

• SORTA is not proposed to contribute funding to this project or grant application. SORTA is not acting as the grant applicant.

BUSINESS PURPOSE

• SORTA wishes to end its involvement in the Cincinnati Streetcar to focus on the Metro Bus and Paratransit system. The SORTA Board of Trustees passed a motion at the September 18, 2018 meeting instructing staff to begin developing a new operating structure for the streetcar; this resolution provides further guidance.

• The City of Cincinnati, per City Council motion 201801150 requested and received information which began the transition process in the form of a report from the City Manager dated November 27, 2018.

PROCUREMENT CONSIDERATIONS

• N/A

D/M/WBE CONSIDERATIONS

• N/A LEGAL CONSIDERATIONS

• The 2015 OMIGA with the City of Cincinnati requires renegotiation to transfer SORTA responsibilities for the Cincinnati Streetcar to the City of Cincinnati. SORTA owned assets, ongoing contracts and systems used [in part] for supporting Cincinnati Streetcar will require sale, transfer or other arrangement.

• The City of Cincinnati is required to become a grantee of the Federal Transit Administration for the complete transfer of remaining FTA liability for the Cincinnati Streetcar from SORTA to the City.

• The City of Cincinnati must constitute the rail safety technical capacity to assume the responsibility from SORTA for the ODOT/SSO compliance program for the Cincinnati Streetcar.

SUBMITTED BY:

Darryl Haley Interim CEO/General Manager

Attachments: OMIGA MUO

BOARD OF TRUSTEES SOUTHWEST OHIO REGIONAL TRANSIT AUTHORITY RESOLUTION NO. 2019-13

APPROVAL OF AMENDMENT TO THE AMENDED AND RESTATED OPERATIONS AND MAINTENANCE INTERGOVERNMENTAL AGREEMENT WITH THE CITY OF CINCINNATI GOVERNING OPERATIONS AND MAINTENANCE OF THE CINCINNATI STREETCAR

WHEREAS:

1. In December, 2014, the SORTA Board approved the Intergovernmental Agreement with the City of Cincinnati Governing Operations and Maintenance of the Cincinnati Streetcar (“OMIGA”), establishing SORTA as the operator of the Cincinnati Streetcar.

2. In December 2016, the Board approved the Amended and Restated Intergovernmental Agreement with the City of Cincinnati Governing Operations and Maintenance to address VTICA as a revenue source and include any costs or expenses related to VTICA payments and the agreement between SORTA and DCI affiliate.

3. SORTA staff recommends the Board approve the Amendment to the Amended and Restated Intergovernmental Agreement with the City of Cincinnati Governing Operations and Maintenance of the Cincinnati Streetcar (OMIGA) to authorize the City’s Deputy Director of Streetcar Services to fulfill the responsibilities of SORTA’s Director of Rail Services, which position is referenced in the OMIGA and is an essential role in management of the streetcar and authorize execution of the Amendment to the Amended and Restated Intergovernmental Agreement and the attached Memorandum of Understanding in substantially the forms attached.

THEREFORE, BE IT RESOLVED:

4. The Board hereby approves the Amendment to the Amended and Restated Intergovernmental Agreement with the City of Cincinnati Governing Operations and Maintenance and the Memorandum of Understanding in substantially the forms attached and authorizes and directs the Interim CEO/General Manager to execute both on behalf of SORTA.

Cincinnati Bell Connector OMIGA Restructuring 2015 O&M Intergovernmental Agreement (OMIGA)

• Governing Agreement for Streetcar – Roles and Responsibilities – Process – Liabilities

2 2015 OMIGA Restructuring

– SORTA is negotiating its exit from Streetcar Operations and Maintenance responsibilities • September 2018 Board motion • City of Cincinnati motion 201801150 (November 2018)

– OMIGA includes many roles and responsibilities

– OMIGA Amendments will come to the Board of Trustees for approval

– Establishment of Board Guiding Principles will guide SORTA staff and counsel negotiations of policy issues with FTA, ODOT and City

3 Proposed Guiding Principles

1. “SORTA shall have no direct financial involvement in or liabilities for the Cincinnati Streetcar”

2. “SORTA staff shall have no ongoing or regular responsibilities or involvement in the Cincinnati Streetcar”

4 Board of Trustees Action

Staff requests action on the draft Motion:

“The Southwest Ohio Regional Transit Authority establishes the following guiding principles for the restructuring of the 2015 Streetcar Operations and Maintenance Intergovernmental Agreement (OMIGA) to remove SORTA from primary responsibilities for the Cincinnati Streetcar: 1. SORTA shall have no direct financial involvement in or liabilities for the Cincinnati Streetcar; 2. SORTA staff shall have no ongoing or regular responsibilities or involvement in the Cincinnati Streetcar. These guiding principles will be used to renegotiate the OMIGA with the City of Cincinnati.”

5 SORTA Streetcar Exit

• Timeline – August 1, 2019 – Director of Rail Services transition • Interim Deputy Director Streetcar Services reports to SORTA (OMIGA Amendment #2) – December 31, 2019 – Assignment of Transdev Contract to City of Cincinnati • Requires City to assume ODOT State Safety Oversight (SSO) responsibilities • 49 CFR part 674 compliance – March 1, 2019 – City of Cincinnati approved as FTA Grantee • Streetcar Grants transferred to City of Cincinnati

6 Phase One

• Transfer of Operating Responsibility to Interim Deputy Director of Streetcar Services – Direct Report of SORTA General Manager/CEO (temporary) – Established as SORTA Employee • Access to SORTA management systems • Facilitates transfer – Required for FTA and ODOT SSO compliance

• OMIGA Amendment #2

7 OMIGA Amendment #2

• Insert Specifics once available • Request Action from BoT

8 Thank you

Attachments: Executive Summary Financial Report

June 2019

BRIEFING ITEM – MONTHLY FINANCIAL REPORTS – AS OF MAY 31ST, 2019

STRATEGIC PLAN GOAL / OBJECTIVE

• Operational Excellence

RECOMMENDATION

This is a briefing item. No action is required at this time.

BUSINESS PURPOSE

• As part of the monthly closing of the general ledger, the Accounting Department prepares various financial reports.

• One of the key reports is the Statement of Revenues and Expenses, also known as an Income Statement.

• This report gives summary information about how actual SORTA revenues and expenses in the newly closed month (as well as calendar year-to-date) compare with budgeted and prior year values.

• A separate Executive Summary is also prepared to give narrative descriptions behind key favorable and unfavorable actual results compared with budget values.

• Attached are Monthly Financial Reports for SORTA and the Connector as of May 31st, 2019.

SUBMITTED BY:

Michelle Jeng Interim CFO/Sr. Vice-President, Finance

SOUTHWEST OHIO REGIONAL TRANSIT AUTHORITY Monthly Financial Report Executive Summary May 2019

SORTA’s financial report for the month ending May 31, 2019 is attached.

• Total Revenue of $11.0 million was favorable to budget by $2.9 million or 36.1%.

• Total Expense of $11.3 million was unfavorable to budget by $(2.9) million or (34.5%);

o Operations expense of $10.1 million was 126.2% of revenue; and o Selling, General & Administrative (SG&A) expense of $1.2 million was 14.9% of revenue. Depreciation expense of $1.1 million was incurred but not included in the budgeted expense figures. o • Result was a net unfavorable variance before reserves and prior year surplus of $(296,000) in the month of May.

• Budgeted reserves of $234,000 and prior year surplus of $83,000 were used in the month.

• The final result was a net favorable variance of $19,000 for the month and favorable variance of $355,000 year to date.

Below is a summary of the most significant factors driving the results for May:

• Fare Revenue: Unfavorable to budget by $(50,000) or (3.1%). The unfavorable Metro fare revenue of $(44,000) resulted in a farebox recovery ratio of 19.3% which was unfavorable to budget by (0.4%).

• General Liability and Policy: During the month of May, SORTA adopted the Board Approved General Liability Policy. As part of this policy, the City of Cincinnati transferred $3 million of Insurance Reserve Transit Funds designated for claim reserves, in which SORTA recognized as revenue. Additionally, $(2.6) million of general liability expense was incurred to increase the reserve balance in accordance with the policy, to the actuarial calculated reserve amount.

• Non-Transportation Revenue: Unfavorable to budget by $(14,000) or (8.2%) due to unfavorable advertising revenue of $(11,000).

• Employee Wages: Wages from Operations were unfavorable to budget by $(183,000) or (5.3%). SG&A wages were favorable to budget by $11,000 or 2.1%.

• Employee Benefits: Benefits from Operations were unfavorable to budget by $(49,000) or (2.5%). Benefits from SG&A were favorable $16,000 to budget or 7.0%.

• Parts & Supplies: Unfavorable to budget by $(44,000) or (9.1%) due to unfavorable revenue vehicle parts of $(49,000).

• Services: Favorable to budget by $27,000 or 7.0% due to favorable Building Maintenance of $26,000 and Legal expense of $28,000 partially offset by Outsourced Services of $(38,000).

• Salary Headcount: There were 13 open positions at the end of May.

Profit & Loss Statement Five Months Ended 05/31/2019 Dollars In Thousands

Current Month Year To Date Prior Yr Variance Variance Actual Budget Actual Budget Actual Fav/(Unfav) Fav/(Unfav)

Fixed Route Ridership 1,148,250 1,181,568 (33,318) (2.8%) 5,533,884 5,589,479 (55,595) (1.0%) 5,762,510 Access Ridership 19,882 21,219 (1,337) (6.3%) 96,207 97,978 (1,771) (1.8%) 96,839 Total Ridership 1,168,132 1,202,787 (34,655) (2.9%) 5,630,091 5,687,457 (57,366) (1.0%) 5,859,349

Farebox Recovery Ratio (1) 19.3% 19.6% (0.4%) 18.3% 17.7% 0.6% 18.6%

Dollars % Rev (7) Dollars % Rev $ % Dollars % Rev (7) Dollars % Rev $ % $ Revenue Operating Revenue Fares Metro Fares (2) $ 1,484 18.5% $ 1,529 18.9% $ (44.4) (2.9%) $ 7,034 17.5% $ 6,862 17.1% $ 171.2 2.5% $ 7,149 Access Fares 82 1.0% 88 1.1% (5.9) (6.7%) 399 1.0% 408 1.0% (8.9) (2.2%) 400 Total Fares 1,567 19.5% 1,617 20.0% (50.3) (3.1%) 7,433 18.5% 7,270 18.2% 162.3 2.2% 7,549

CPS Contract Revenue 812 10.1% 815 10.1% (3.2) (0.4%) 4,231 10.5% 4,247 10.6% (15.7) (0.4%) 4,231 Non‐Transportation Revenue (3) 155 1.9% 169 2.1% (13.9) (8.2%) 787 2.0% 835 2.1% (47.2) (5.7%) 722 Subtotal Operating Revenue 2,534 31.6% 2,602 32.1% (67.4) (2.6%) 12,451 31.0% 12,351 30.9% 99.5 0.8% 12,502

Subsidy Revenue Transit Fund Receipts 4,138 51.6% 4,138 51.1% 0.0 0.0% 19,789 49.3% 19,789 49.4% 0.0 0.0% 21,278 Transit Fund ‐ Claim Reserve 3,000 n/a 0 0.0% 3,000.0 n/a 3,000 n/a 0 0.0% 3,000.0 n/a 0 Federal Cash Grants 1,100 13.7% 1,100 13.6% 0.0 0.0% 6,662 16.6% 6,662 16.6% 0.0 0.0% 6,552 State & Other Subsidy Revenue (4) 250 3.1% 260 3.2% (10.1) (3.9%) 1,224 3.1% 1,231 3.1% (7.2) (0.6%) 1,209 Subtotal Subsidy Revenue 8,487 68.4% 5,497 67.9% 2,989.9 54.4% 30,674 69.0% 27,682 69.1% 2,992.8 10.8% 29,038

Total Revenue 11,021 100% 8,099 100.0% 2,922.5 36.1% 43,125 100.0% 40,033 100.0% 3,092.2 7.7% 41,541

Cost of Operations Wages 3,626 45.2% 3,444 42.5% (182.8) (5.3%) 17,261 40.0% 17,222 43.0% (39.0) (0.2%) 16,739 Employee Benefits 1,966 24.5% 1,918 23.7% (48.7) (2.5%) 9,425 21.9% 9,423 23.5% (1.9) (0.0%) 9,034 Fuel & Lubricants 473 5.9% 446 5.5% (27.9) (6.3%) 2,102 4.9% 2,151 5.4% 48.7 2.3% 2,339 Parts & Supplies 491 6.1% 466 5.8% (24.8) (5.3%) 2,528 5.9% 2,321 5.8% (206.4) (8.9%) 2,254 Purchased Transportation 613 7.6% 624 7.7% 11.1 1.8% 2,966 6.9% 2,967 7.4% 0.5 0.0% 2,790 Services 67 0.8% 121 1.5% 53.8 44.5% 462 1.1% 635 1.6% 172.7 27.2% 596 Utilities 89 1.1% 60 0.7% (29.0) (48.6%) 509 1.2% 474 1.2% (35.3) (7.4%) 457 Casualty & Liability 2,724 34.0% 90 1.1% (2,634.0) (2924.2%) 3,204 7.4% 450 1.1% (2,753.3) (611.3%) 736 Taxes & Leases 72 0.9% 70 0.9% (2.2) (3.1%) 336 0.8% 351 0.9% 14.6 4.2% 359 Other (5) 3 0.0% 7 0.1% 4.1 58.5% 12 0.0% 36 0.1% 23.1 65.0% 28 Total Cost of Operations (6) 10,125 126.2% 7,245 89.5% (2,880.3) (39.8%) 38,806 90.0% 36,030 90.0% (2,776.3) (7.7%) 35,332

Selling, General & Administrative Wages 537 6.7% 549 6.8% 11.3 2.1% 2,615 6.5% 2,632 6.6% 16.8 0.6% 2,551 Employee Benefits 213 2.7% 229 2.8% 15.9 7.0% 1,089 2.7% 1,138 2.8% 48.9 4.3% 1,068 Parts & Supplies 36 0.5% 17 0.2% (19.0) (110.3%) 130 0.3% 107 0.3% (23.0) (21.4%) 95 Services 286 3.6% 259 3.2% (27.0) (10.4%) 1,243 3.1% 1,330 3.3% 86.7 6.5% 1,494 Utilities 16 0.2% 15 0.2% (0.5) (3.6%) 77 0.2% 76 0.2% (1.5) (2.0%) 72 Taxes & Leases 58 0.7% 62 0.8% 4.3 6.9% 232 0.6% 304 0.8% 72.4 23.8% 177 Other (5) 47 0.6% 39 0.5% (7.7) (19.8%) 282 0.7% 120 0.3% (161.5) (134.4%) 381 Total SG&A (6) 1,192 14.9% 1,170 14.4% (22.8) (1.9%) 5,668 14.1% 5,707 14.3% 38.8 0.7% 5,838

Total Expenses 11,317 141.1% 8,414 103.9% (2,903.1) (34.5%) 44,474 110.8% 41,737 104.3% (2,737.5) (6.6%) 41,170 Use of Prior Year Reserves 234 2.9% 234 2.9% 0.0 0.0% 1,168 2.9% 1,168 2.9% 0.0 0.0% 123 Use of Prior Year Surplus 82 1.0% 82 1.0% 0.0 0.0% 536 1.3% 536 1.3% 0.0 0.0% 0 Surplus (Deficit) $ 19 0.2% $ ‐ 0.0% $ 19.4 $ 355 0.9% $ ‐ 0.0% $ 355 $ 494

Depreciation Expense $ 1,140 14.2% $ 5,700 14.2% $ 6,355

Notes: (1) Farebox Recovery Ratio = Metro Fares Revenue / (Total Expenses less Purchased Transportation Expense and $3.0 M Claims Exp as a result of receipt of funds from City); Full Year Budgeted Farebox Recovery Ratio is 19.1% (2) Metro Fare Revenue includes Regular Fares & Passes, Fare Deal, and Special Program Fares (3) Non‐Transportation revenues include advertising, investment income, parking revenue, warranty recoveries & fee SORTA receives from the City to manage the streetcar. (4) Other Subsidy Revenue includes county contracts, and payments from 5/3 Bank, Duke Energy, UC and Cincinnati State. (5) Other includes advertising, training, dues and subscriptions, travel and incentive fares. (6) Full year 2019 Budget: Operating Expense @ 85.1% of Revenue & SG&A @ 14.9% of Revenue. (7) Excludes Transit Fund receipt of $3.0 M for claim reserves

SOUTHWEST OHIO REGIONAL TRANSIT AUTHORITY CINCINNATI BELL CONNECTOR MONTHLY FINANCIAL REPORT EXECUTIVE SUMMARY MAY, 2019

The Cincinnati Bell Connector financial report for the month ending May 31, 2019 is attached.

 Total Revenues were $277,603 which is unfavorable to budget by $65,350 or 19%.  Total Expenses were $346,222, which is unfavorable to budget by $3,269 or 1%.  May income is unfavorable to budget by $68,619.  Year to date income is unfavorable to budget by $109,537.  A favorable adjustment from a prior month to the Transdev Contract Expense of $28,989 is reflected in the year to date results.

Below is a summary of the most significant factors driving results for the month:

 Ridership: Unfavorable by 7,118 or 13% for the month.  Fare Revenue: Unfavorable by $7,538 or 18% for the month.  Connector Advertising: Unfavorable by $60,604 or 89% for the month due to advertising contracts below budgeted expectations. Southwest Ohio Regional Transit Authority Cincinnati Bell Connector Year to Date Financial Report As of May 31, 2019

Curr Mo Curr Mo Month Variance YTD YTD YTD Variance Actual Budget Fav / (Unfav) Actual Budget Fav / (Unfav)

Ridership 46,931 54,049 (7,118) -13% 428,452 472,628 (44,176) -9% Fares Regular Fares & Passes $30,804 $40,932 ($10,128) -25% 279,559 $357,925 (78,366) -22% Charter Service 2,590 0 2,590 - 6,640 0 6,640 - Total Fares 33,394 40,932 (7,538) -18% 286,199 357,925 (71,726) -20% Other Revenue City Parking Meter Contribution, (Net of City Overhead Expense) 78,693 78,693 0 0% 865,625 865,625 0 0% City Appropriated Surplus Parking 32,419 32,419 0 0% 601,711 601,711 0 0% Haile Foundation 75,000 75,000 0 0% 825,000 825,000 0 0% Tax Incentive Policy (VTICA) 10,833 10,833 0 0% 119,166 119,166 0 0% Federal Formula Funding 16,103 16,103 0 0% 241,542 177,130 64,412 36% Connector Advertising 7,452 68,056 (60,604) -89% 62,295 581,948 (519,653) -89% Naming Rights 23,709 20,917 2,792 13% 243,925 230,087 13,838 6% Total Fares and Other Revenue 277,603 342,953 (65,350) -19% 3,245,463 3,758,592 (513,129) -14% Expenses Transdev Contract 289,894 289,894 0 0% 2,825,661 3,160,407 334,746 11% SORTA Management Fee 23,192 23,192 0 0% 252,836 252,836 0 0% Direct Costs 33,136 29,867 (3,269) -11% 276,502 345,349 68,847 20% Total Expenses 346,222 342,953 (3,269) -1% 3,354,999 3,758,592 403,593 11% NET INCOME / (DEFICIT) ($68,619) $0 ($68,619) (109,536) $0 (109,536)

June 2019

In the spotlight: There’s lots of great news to share this month, however, I’m particularly excited to highlight a new campaign in Operations that will help improve service reliability for our riders:

• “Be cool, don’t run hot!”: Over the past five years, on-time performance (OTP) has dropped, while early operations “running hot” has tripled. Not surprisingly, OTP is one of the top three areas our customers reported wanting to see improved, according to the latest ridership survey. To remedy this issue, we’ve launched a new internal campaign, “Be cool, don’t run hot!,” in addition to restructuring our Street Supervisors and Division Managers into Sectors. They’ll utilize a data-focused approach to target areas in need of improvement, including low performing routes and time-point issues. Operators will benefit from the support and presence of a consistent team as we tackle these issues together to better serve our customers!

The buses are coming, the buses are coming!: Five of the 34 new buses have arrived! They’re getting primped and primed after making the 2,388 mile trek from California before they make their grand appearance on the road soon. We’ll keep you updated.

June is Safety Month: Each June we join the National Safety Council in recognizing excellence in safety. This year, we’ll celebrate nearly 90 employees who have achieved milestone safety awards for 5, 10, 15, 20, 25 or 30 years of driving without a preventable accident during our annual awards luncheon! Even more impressive, two Operators Reginald Brown and Steven Rolfes, are being inducted into the distinguished Two Million Mile Club for driving at least two million miles accident free! Also, new this year, we’ll be recognizing our Employees of The Year for exceptional performance in OTP, customer service, safety, and attendance during the Luncheon.

• Safety and Employee of the Year Awards Luncheon: Celebrate with us on June 26, 11:30 a.m.-1:30 p.m. at The Center, 115 E. Fifth St. (Please RSVP your attendance via the emailed calendar invite). This year’s guest speaker is Travis Steele, Head Men’s Basketball Coach at Xavier University.

Macy’s Kids, Culture, Critters and Crafts Festival: We’re partnering with Learning Through Art again this year to offer $0.50 rides on the Rt. 46 Avondale to the Cincinnati Zoo on July 17 for their annual MKCCC Festival. Zoo admission that day is only $1.

Stuff-the-Bus: On Monday, we invited the community to help us “Stuff-the Bus” with non-perishable food and cleaning items to support our neighbors in Dayton and Celina impacted by recent tornados. Thank you to everyone who donated.

Operator Career Fair & CDL Permit Class: Help us spread the word. The next Operator Career Fair will be held on Saturday, June 22 from 9 a.m.-1 p.m. at the Queensgate Facility. On-site interviews and assessments will be offered and full and part-time positions are available. Plus, Metro’s offering a $500 bonus after successful completion of training. We’re also pleased to announce that there were 11 candidates in attendance for our first CDL Permit Class to get extra assistance with passing the written portion of the CDL exam and becoming Metro Operators.

Farewell Ted: All signs point to some much deserved R&R for Ted Meyer, Director of Planning and Scheduling, who after 37 years of serving our community is retiring at the end of the month. We wish him all the best, he will be missed!

Outreach season is here: Here are just a few of the places you’ll see Metro in the coming months: • June 15-16 – Cincinnati Juneteenth Festival in Eden Park • June 22 – Springfield Township Touch-A-Truck • June 22 – Cincinnati Pride Festival at Sawyer Point • July 4th – Northside 4th of July parade • July 12 – Kids Outdoor Adventure Expo • July 26-28 – Greater Anderson Days • August 16-18 – Midwest Black Family Reunion at Sawyer Point

Everyone loves a parade: Look for the next Hydi sighting in the Cincinnati on Saturday, June 22.

If you have any questions, please call me at (513) 632-7690.

Darryl Haley Interim CEO/General Manager