BOARD OF DIRECTORS MEETING 200 WEST LOUDON AVE, CONFERENCE ROOM 110 LEXINGTON, KY 40508 November 14, 2018 5:00 p.m. TABLE OF CONTENTS AGENDA ..................................................................................................................... 1 MINUTES ................................................................................................................. 2-7 FISCAL YEAR 2018 AUDIT .................................................................................... 8-63 RESOLUTION ....................................................................................................... 64-69 OLD BUSINESS .................................................................................................... 70-76 FINANCIAL STATEMENT .................................................................................... 77-78 GENERAL MANAGER REPORT ........................................................................... 79-81 KPIS ...................................................................................................................... 82-86 INFORMATION ......................................................................................................... 87 Agenda Page 1 of 1 BOARD OF DIRECTORS MEETING 200 WEST LOUDON AVE, CONFERENCE ROOM 110 LEXINGTON, KY 40508 November 14, 2018 5:00 p.m. AGENDA I. Call to order 5:00 II. Approval of Board Meeting Minutes 5:00 — 5:05 i. September 19, 2018 Board Meeting ii. October 17, 2018 Board Meeting III. Public Comment on Agenda Items / Public Hearing 5:05 — 5:10 IV. Chair’s Report 5:10 — 5:15 V. Review Fiscal Year 2018 Audit by Crowe, LLC 5:15 — 5:30 VI. Action Items 5:30 — 5:50 i. Resolution No. 2018-22 - Website Hosting and Design ii. Resolution - 2018-23 - Paratransit Eligibility Assessments iii. Resolution - 2018-24 - Radio Tower Service Agreement VII. Change Order VIII. Old Business 5:50 — 6:05 i. Update on Branding project IX. New Business X. General Manager’s Report 6:05 — 6:15 i. Financial Statement ii. General Manager’s Report iii. Key Performance Indicators XI. Proposed Agenda Items 6:15 — 6:20 XII. Closed Session XIII. Adjournment Lextran Board of Directors Meeting – November 2018 1 Minutes Page 1 of 3 BOARD OF DIRECTORS MEETING MINUTES September 19, 2018 MEMBERS PRESENT MEMBERS ABSENT Malcolm Ratchford, Chair Dr. Augusta Julian George Ward, Vice Chair Adrienne Thakur Rick Christman Elias Haddad Marci Krueger-Sidebottom Christian Motley STAFF PRESENT STAFF ABSENT Carrie Butler, General Manager Jill Barnett, Assistant General Manager Carla McHale, Director of Human Resources Fred Combs, Planning and Technology Manager John Givens, Director of Risk Management Keith Srutowski, Director of Procurement Jim Barrett, Director of Maintenance Nikki Falconbury, Director of Finance Ronda Brooks, Administrative Assistant Alan Jones, Technology Coordinator Chris Meetin, Maintenance Manager Jacob Walbourn, McBrayer Law Firm, Board Attorney OTHERS PRESENT Joseph David, Transportation Planner,DRAFT LFUCG MPO Matthew Gidcomb, KFTC - Kentuckians for the Commonwealth Lextran Board of Directors Meeting – November 2018 2 Minutes Page 2 of 3 I. CALL TO ORDER Mr. Ratchford called the September 19, 2018 meeting of Lextran’s Board of Directors to order at 5:00 p.m. II. APPROVAL OF MINUTES Mr. Ratchford called for a motion to approve the minutes from the August 15, 2018 board meeting. Mr. Ward made a motion to approve the minutes and it was seconded by Mr. Haddad. The motion carried unanimously. III. PUBLIC COMMENT No public comment IV. CHAIR’S REPORT Mr. Ratchford will be out of town for the next two weeks. Mr. Ratchford requested a public comment follow-up status report as part of the General Manager’s report. V. ACTION ITEMS Resolution 2018-21 Purchase Three (3) Compressed Natural Gas (CNG) Buses – Ms. Butler reviewed the resolution that authorizes and directs the General Manager to purchase three (3) 40- foot CNG low-floor transit buses from Gillig at a cost not-to-exceed $514,353.00 per bus for a total not-to-exceed amount of $1,543,059.00. Mr. Ratchford called for a motion. Mr. Ward made a motion and Mr. Christman seconded. The motion carried unanimously. VI. CHANGE ORDER No change report. DRAFT VII. OLD BUSINESS No old business to report. VIII. NEW BUSINESS No new business to report. IX. GENERAL MANAGER’S REPORT Ms. Falconbury presented the financial statements, found on pages 8-9 of the September 19, 2018 board packet. Lextran is two months into the fiscal year of 2019. We’re keeping an eye on Lextran Board of Directors Meeting – November 2018 3 Minutes Page 3 of 3 Paratransit expenses have increased due to higher ridership and fuel cost is higher than expected. Ms. Butler reviewed the General Manager’s report and Key Performance Indicators, found on pages 10-12 of the September 19, 2018 board packet. Highlights: At the Commerce Lexington Public Policy Luncheon on Friday, August 24th, U.S. Department of Transportation Secretary Elaine L. Chao announced Lextran will receive a $2.3 million grant to expand their electric fleet. Additional coverage was added to UK Campus, route 27 Yellow Route - Ms. Butler commended operations. August was the highest ridership in five years. Ms. Barnett has been appointed the acting Director of Operations. X. PROPOSED AGENDA ITEMS Website design resolution Deferred Compensation Services information Audit ACTION ITEM: Ms. Barnett is to follow-up with Mr. Motley regarding Lextran involvement with ONE Lexington Meeting. XI. CLOSED SESSION There was no closed session. XII. ADJOURNMENT The meeting adjourned by consensusDRAFT at 5:23 p.m. Lextran Board of Directors Meeting – November 2018 4 Minutes Page 1 of 3 BOARD OF DIRECTORS MEETING MINUTES October 17, 2018 MEMBERS PRESENT MEMBERS ABSENT George Ward, Vice Chair Malcolm Ratchford, Chair Adrienne Thakur Elias Haddad Rick Christman Dr. Augusta Julian Christian Motley Marci Krueger-Sidebottom STAFF PRESENT STAFF ABSENT Carrie Butler, General Manager Jill Barnett, Assistant General Manager Carla McHale, Director of Human Resources Fred Combs, Planning and Technology Manager John Givens, Director of Risk Management Keith Srutowski, Director of Procurement Jim Barrett, Director of Maintenance Nikki Falconbury, Director of Finance Ronda Brooks, Administrative Assistant Austin Hughes, Marketing Coordinator Emily Elliott, Community Relations Coordinator Jason Dyal, Training Manager Jacob Walbourn, McBrayer Law Firm, Board Attorney OTHERS PRESENT Joseph David, Transportation Planner, LFUCG MPO Matthew Gidcomb, KFTC - Kentuckians for the Commonwealth DRAFT Lextran Board of Directors Meeting – November 2018 5 Minutes Page 2 of 3 I. CALL TO ORDER Mr. Ward called the October 17, 2018 meeting of Lextran’s Board of Directors to order at 5:00 p.m. No actions were taken at this meeting due to lack of a quorum. II. APPROVAL OF MINUTES The approval of minutes from the September 19, 2018 meeting will take place at the November 14, 2018 board meeting. III. PUBLIC COMMENT No public comment IV. CHAIR’S REPORT No chair’s report V. ACTION ITEMS No actions were taken at this meeting due to lack of a quorum. Resolution 2018-21– Website Hosting and Design will be reviewed and approved at the November 14, 2018 board meeting. VI. CHANGE ORDER Mr. Srutowski reviewed the change order with the Center for Transportation and Environment (CTE). The change order can be found on page 63 of the board meeting packet. VII. OLD BUSINESS No old business to report. VIII. NEW BUSINESS DRAFT Ad-Hoc committee on Employee Handbook – Ms. Butler is seeking board members to volunteer to serve on the review committee. Christian Motley and Adrienne Thakur agreed to be a part of the review committee. When the Employee Handbook is brought to the board to approve an update, there will be a summary of the changes. IX. GENERAL MANAGER’S REPORT Ms. Falconbury presented the financial statements, found on pages 64-65 of the October 17, 2018 board packet. The balance sheet is very similar to last year. Inventory is a bit higher than last year, which is due to diesel fuel and parts being recorded in that line item. Three months into Lextran Board of Directors Meeting – November 2018 6 Minutes Page 3 of 3 the year, we are currently $91,000.00 under budget for expenses. Diesel fuel went up to $2.52. We continue to monitor it. Ms. Butler reviewed the Strategic Outlook 2018-2019 presentation found on page 69-82 of the October 17, 2018 board packet. Ms. Butler reviewed the General Manager’s report and Key Performance Indicators, found on pages 66-88 of the October 17, 2018 board packet. Highlights: Virginia Avenue shuttle has done very well. Lextran was awarded a bronze level Green Check Award received on September 20th. Recruitment activit: Lextran hired two mechanics. X. PROPOSED AGENDA ITEMS Resolution 2018-21– Website Hosting and Design Paratransit Eligibility XI. CLOSED SESSION There was no closed session. XII. ADJOURNMENT The meeting adjourned by consensus at 5:53 p.m. DRAFT Lextran Board of Directors Meeting – November 2018 7 Crowe LLP Independent Member Crowe Global Board of Directors Transit Authority of Lexington-Fayette Urban County Government 200 West Loudon Avenue Lexington, Kentucky 40508 Professional standards require that we communicate certain matters to keep you adequately informed about matters related to the financial statement audit that are, in our professional judgment, significant and relevant to your responsibilities in overseeing the financial reporting process. We communicate such matters in this report. AUDITOR’S